New Delhi, September 5 (Daily Kiran) : The Reserve Bank of India (RBI) has approved the Life Insurance Corporation of India (LIC) to increase its stake in ICICI Bank to a maximum of 9.99% of the bank’s paid-up share capital or voting rights. This announcement was made by the private sector bank on Saturday.
ICICI Bank confirmed that it received a copy of the approval letter from the RBI on September 4 at 9:09 PM. Under this approval, LIC is permitted to acquire the stake within one year from the date of receiving the consent. If the stake is not purchased within this timeframe, the approval will automatically lapse.
However, this approval comes with certain conditions, including compliance with applicable statutory and regulatory provisions. The bank clarified that the RBI’s approval does not mean that LIC has immediately increased its stake in ICICI Bank to 9.99%.
Any stake purchase by LIC will be subject to the conditions set by the RBI and other relevant regulatory rules. Previously, the RBI had also granted LIC permission to acquire up to 9.99% stake in HDFC Bank. As of August 14, LIC held 4.11% of HDFC Bank’s total share capital.
The recent approval allows LIC to enhance its stake in ICICI Bank, provided all regulatory and statutory requirements are met.
On Friday, LIC’s shares closed down over 1% at ₹415.25 on the Bombay Stock Exchange. The stock has a 52-week high of ₹468.30 and a low of ₹361. Meanwhile, ICICI Bank’s shares ended at ₹1,423, down 0.14%, with a 52-week high of ₹1,479.90 and a low of ₹1,187.55.
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