LIC Gets RBI Approval to Acquire Up to 9.99% of ICICI Bank

Life Insurance Corporation of India (LIC) has received approval from the Reserve Bank of India to acquire an aggregate holding of up to 9.99% of the paid-up share capital or voting rights in ICICI Bank. The approval is subject to applicable statutory and regulatory conditions and must be utilised within one year from the date of the RBI’s approval letter. As of June 30, 2026, LIC held approximately 4.35% of ICICI Bank. The approval therefore provides the insurer with flexibility to increase its holding, although it does not confirm that LIC will immediately purchase the full permitted stake. The development could support ICICI Bank’s institutional shareholder base and reflects LIC’s continued exposure to major private-sector lenders. For LIC, the approval provides additional flexibility in managing its long-term investment portfolio. However, investors should distinguish between regulatory permission and an actual acquisition. The financial impact will depend on LIC’s eventual purchases, the price at which shares are acquired and any subsequent changes in the bank’s shareholding pattern. Overall, the development is strategically relevant, but it should not be treated as confirmation of an immediate 9.99% stake purchase.