.Life Insurance Corporation of India (LIC) has secured approval from the Reserve Bank of India (RBI) to acquire up to 9.99 per cent of the paid-up share capital or voting rights in ICICI Bank, according to a regulatory filing by the private sector lender. The approval gives the state-owned insurer one year from the date of the RBI’s letter to complete the proposed acquisition. The permission will cease to remain valid if LIC does not acquire the stake within the prescribed period.
ICICI Bank said it received the RBI communication on September 4, 2026, at 9:09 pm. The proposed stake purchase will also have to comply with all applicable statutory and regulatory requirements.
According to ICICI Bank’s exchange filing, the RBI has permitted LIC to build an “aggregate holding” of as much as 9.99 per cent in the bank.
“On September 4, 2026 at 9:09 pm, ICICI Bank Limited (the Bank) has received a copy of Reserve Bank of India (RBI ) letter dated the same day addressed to Life Insurance Corporation of India (the applicant) that it has accorded its approval to the applicant to acquire ‘aggregate holding’ of up to 9.9 9 per cent of the paid -up share capital or voting rights in the Bank within one year from the date of RBI approval letter, failing which RBI approval shall stand cancelled.”
The filing further clarified that the regulatory permission comes with conditions governing the transaction.
“The approval is subject to certain conditions including compliance with the relevant statutory and regulatory provisions,” the filing read.
This means any increase in LIC’s holding will remain subject to the broader rules applicable to shareholding in regulated banking entities.
LIC Expands Presence Across Major Banks
The RBI approval for ICICI Bank comes shortly after LIC received clearance to increase its holding in another major private lender, HDFC Bank.
In an August 19 regulatory filing, HDFC Bank disclosed that the RBI had approved LIC’s application to acquire up to 9.99 per cent of its paid-up share capital or voting rights.
The filing stated that the regulator had “accorded its approval to Life Insurance Corporation of India (LIC)” to acquire the additional stake in the bank.
HDFC Bank also disclosed LIC’s existing ownership position, stating that LIC “holds 4.11% of the total share capital of the Bank.”
The latest approvals underline LIC’s growing presence as a significant institutional investor in India’s banking sector, particularly among the country’s largest private lenders.
What The ICICI Bank Approval Means
The RBI clearance does not by itself indicate that LIC will immediately purchase the entire 9.99 per cent permitted stake. Instead, it provides the insurer with regulatory authorisation to build its holding up to that level during the one-year approval period.
The final extent and timing of any acquisition will therefore depend on LIC’s investment decisions and compliance with applicable regulations.
For ICICI Bank, the approval provides clarity on LIC’s ability to increase its ownership in the lender while placing the transaction within the regulatory framework governing significant shareholdings in banks.
The development also comes as institutional investors continue to play a prominent role in India’s financial sector, with large insurers and other long-term investors holding stakes in leading banking companies.
(With Agency Inputs)
