NEW DELHI: HDFC Bank on Thursday said the Reserve Bank of India (RBI) has granted approval to Life Insurance Corporation (LIC) to acquire a 9.99% stake in the country’s largest private lender. At the end of December quarter, LIC’s holding in HDFC Bank stood at 5.19%.
The approval has been granted with reference to the application made by LIC to RBI. LIC has been advised by RBI to acquire the aforesaid major shareholding in the Bank within a period of one year i.e. by January 24, 2025. Further, LIC must ensure that the aggregate holding in the Bank does not exceed 9.99% of the paid-up share capital or voting rights of the Bank at all times.
The development is seen as a positive for HDFC Bank shareholders as its shares have been under selling pressure since it announced its December quarter results. On Thursday, HDFC Bank share on BSE closed 1.4% lower at Rs 1,435.3.