RBI allows LIC to acquire 9.99% in ICICI Bank

The Reserve Bank of India (RBI) has authorized Life Insurance Corporation of India (LIC) to acquire an aggregate holding of up to 9.99% in ICICI Bank. This approval permits the state-owned insurer to significantly increase its existing stake, which stood at 4.35% as of the June 2026 quarter. The RBI's clearance is effective for one year from the date of its issuance, after which it will be rescinded if not acted upon.

This development provides LIC with greater flexibility to expand its ownership in India's leading private sector banks. Recently, LIC also received RBI approval to raise its stake in HDFC Bank to a similar limit. Such acquisitions require prior RBI approval for entities seeking to hold 5% or more of a bank's paid-up capital or voting rights, with a general ceiling of 10% for non-promoters.

As of the June 2026 quarter, mutual funds held 29.60% of ICICI Bank, and other insurance companies owned 8.24%. LIC's existing stake was 4.35%. The RBI's approval is an enabling provision, meaning LIC is not obligated to immediately increase its stake to the maximum permitted level. Any future increase will be subject to prevailing regulatory norms and LIC's investment strategy.