Skip to content
Free updates Login
SSCBankingNABARD / RBI

LIC cleared by RBI to raise HDFC Bank stake up to 9.99%

22 August 20261 min read
BANKING & FINANCELIC cleared by RBIto raise HDFCBank stake up to9.99%22 August 2026safalsetu.com

Why in the news

The central bank gave LIC room to build a larger shareholding in HDFC Bank in August 2026.

Key facts

  • Ceiling approved: 9.99% of paid-up capital or voting rights.
  • Present holding: roughly 4.11%.
  • The permission does not oblige or signal an immediate jump to 9.99%.
  • Further buying must meet RBI, SEBI, FEMA and Banking Regulation Act norms.

Significance

  • Gives LIC flexibility as a large institutional investor in the banking sector.

Exam angle

  • Likely question: up to what percentage can LIC hold in HDFC Bank per RBI approval? Answer: 9.99%.
  • Related terms: paid-up share capital, voting rights, institutional investor.
  • Approving authority: RBI; other regulators and laws still apply.

Test yourself

1. Up to what limit did RBI allow LIC to raise its stake in HDFC Bank?

RBI approved a stake up to 9.99%.

2. Roughly what share of HDFC Bank did LIC hold when RBI gave this approval?

LIC held around 4.11%.

3. Which of these laws must LIC still comply with when raising its HDFC Bank stake?

Acquisitions must meet RBI, SEBI, FEMA and Banking Regulation Act requirements.

This topic is part of Daily Current Affairs 21 August 2026 (25 topics).

All topics of the dayDay quizAugust 2026

Read more