Noida, Aug 20 (APAC Media): Shares of HDFC Bank and Life Insurance Corporation of India (LIC) were in focus on Thursday after the Reserve Bank of India approved LIC’s proposal to increase its stake in the private sector lender to up to 9.99 per cent.
HDFC Bank, in a regulatory filing, said the central bank conveyed its approval through a letter dated August 19.
LIC currently holds a 4.11 per cent stake in HDFC Bank, based on its shareholding as of August 14, according to the filing.
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The approval allows LIC to raise its holding in HDFC Bank to 9.99 per cent, subject to compliance with applicable regulatory requirements.
“The aforesaid approval granted by RBI is subject to the conditions mentioned therein,” HDFC Bank said in the filing.
“As per the conditions mentioned above and as a part of the aforementioned approval, it shall be subject to adherence to the requirements under provisions of the Banking Regulation Act, 1949; Reserve Bank of India (Commercial Banks – Acquisition and Holding of Shares or Voting Rights) Directions, 2025; Foreign Exchange Management Act, 1999; regulations under Securities and Exchange Board of India; and any other statute(s), regulations and guidelines,” it added.
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The development comes after HDFC Bank reported a 5 per cent year-on-year rise in standalone net profit at Rs 19,060 crore for the quarter ended June 2026. Net profit stood at Rs 18,155 crore in the year-ago period.
Net interest income rose 7 per cent to Rs 33,530 crore during the quarter from Rs 31,440 crore a year earlier.
The bank’s asset quality also improved, with gross non-performing assets declining to 1.17 per cent from 1.40 per cent a year earlier. Net NPAs stood at 0.41 per cent, compared with 0.47 per cent in the corresponding period.
Following the RBI approval, HDFC Bank shares gained 1.08 per cent to Rs 727.75 on the NSE around 9:24 am, while LIC shares rose 0.65 per cent to Rs 415.80.
The RBI approval, however, does not require LIC to immediately increase its holding to 9.99 per cent. The insurer can raise its stake up to the approved limit while complying with the applicable regulatory framework.
–ENDS–
Disclaimer:Â This article is for informational purposes only and is based on publicly available information. APAC Media is not responsible for investment decisions or losses. Please conduct your own research or consult a financial adviser before investing.
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