The Reserve Bank of India (RBI) has allowed the Life Insurance Corp. of India (LIC) to acquire up to 9.99% stake in HDFC Bank.

Economy Business

The Reserve Bank of India (RBI) has allowed the Life Insurance Corp. of India (LIC) to acquire up to 9.99% stake in HDFC Bank. RBI has advised LIC to acquire the additional HDFC Bank shares within a year. Further, LIC must ensure 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 central bank approved LIC's application, subject to its compliance with the provisions of the Banking Regulation Act, 1949, the RBI’s Master Direction and Guidelines on Acquisition and Holding of Shares or Voting Rights in Banking Companies, the Foreign Exchange Management Act, 1999.


      The Reserve Bank of India (RBI) has allowed the Life Insurance Corp. of India (LIC) to acquire up to 9.99% stake in HDFC Bank.

      Major shareholding is defined as an aggregate holding of 5% or more of the paid-up share capital or voting rights in a bank.

      LIC currently holds 5.19% stake in HDFC Bank, the country's largest private sector lender.

 

     


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