The Reserve Bank of India (RBI) has accepted a proposal of the Life Insurance Corporation of India (LIC) to purchase upto 9.99% stake in HDFC Bank.
Shareholding sample particulars for the December quarter filed by HDFC Bank present that LIC holding in the non-public lender stood at 5.19%. Under the RBI approval, the State-owned insurer is required to “acquire major shareholding in HDFC Bank within a period of one year (January 24, 2025).”
In doing so, LIC should be sure that its “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 insurer stated on Friday in a submitting on the RBI’s January 25 resolution. The insurer had utilized to the central financial institution on November 30.
