LIC Gets RBI Approval to Acquire Up to 9.99% Stake in ICICI Bank

Life Insurance Corporation of India (LIC) has got regulatory approval from the Reserve Bank of India (RBI) to buy an aggregate stake of up to 9.99% in ICICI Bank. The regulatory clearance enables the biggest insurance company of India to buy into the private sector bank, although the actual acquisition process hasn’t been initiated yet. The clearance from the Reserve Bank of India (RBI) will be valid for a period of one year starting from September 4, 2026.

What Has RBI Approved?

Reserve Bank of India (RBI) has given the clearance to Life Insurance Corporation of India (LIC) to purchase up to 9.99% of the paid-up share capital or voting rights in ICICI Bank.

ICICI Bank has received the clearance letter from the Reserve Bank of India (RBI) on September 4 at 9:09 pm.

It is noteworthy that the clearance is not the proof of the fact that the Life Insurance Corporation of India (LIC) has acquired the additional shares already.

Conditions Attached to RBI Clearance

There will be some conditions that will apply to the acquisition of shares by the LIC. The RBI has attached compliance with those provisions as a condition for its clearance.

The permit will lapse if LIC does not take advantage of the permission to acquire shares within one year. That means that by September 2027, the insurer will have to act on the clearance.

The ultimate number of shares to be acquired by the insurer, therefore, will be left to the insurer.

The Importance of Share Acquisition by the LIC

ICICI Bank is one of the leading commercial banks in India, whereas LIC is the largest life insurance company as well as an institution with substantial investments in Indian stocks.

The clearance granted by the RBI to the LIC will allow the latter to acquire additional shares of ICICI Bank, and thus become even more important an institution for ICICI Bank. It should be noted, however, that the clearance itself is not indicative of the actual amount of shares that will be acquired.

RBI Approval Given to LIC for HDFC Bank

Following the RBI approval for ICICI Bank, the regulator has also given an approval to LIC for 9.99% of the paid-up share capital or voting rights of HDFC Bank.

As per an HDFC Bank regulatory filing made on August 19, 2026, LIC had a stake of 4.11% in the share capital of the bank. The above approval will thus allow LIC to increase its stake in two large private sector banks.

The closing price of LIC shares was ₹415.35 as on September 4, 2026.