RBI allows LIC to boost HDFC Bank stake to 9.99%

Business Aug 20, 2026

Big move in the banking world: RBI has just allowed LIC to boost its stake in HDFC Bank all the way up to 9.99%.

LIC currently owns 4.11%, so this is a pretty big jump, and it comes after LIC formally asked for it.

The approval landed on August 19, 2026.

LIC must follow banking investment rules

RBI's nod comes with some strings attached: LIC has to stick to all the usual banking and investment rules.

This step helps LIC strengthen its spot in HDFC Bank, especially as the bank faces a slight uptick in bad loans (NPAs) lately.

For context, HDFC Bank's gross NPA rose to 1.17% last quarter, and its shares closed slightly down at ₹720.15 on August 19.