RBI Clears LIC To Acquire Up To 9.99% Stake In ICICI Bank, Sets One-Year Window

New Delhi: The Reserve Bank of India (RBI) has given Life Insurance Corporation of India (LIC) approval to acquire an aggregate holding of up to 9.99% in private-sector lender ICICI Bank.

The approval covers up to 9.99% of ICICI Bank’s paid-up share capital or voting rights, the lender said in a regulatory filing.

LIC Gets One Year to Acquire Stake

ICICI Bank said it received a copy of the RBI approval letter, dated September 4, at 9:09 pm on the same day.

Under the terms of the approval, LIC has one year to acquire the permitted stake in ICICI Bank. If the acquisition is not completed within this period, the RBI approval will lapse.

The central bank’s clearance, however, does not mean LIC has already increased its shareholding to 9.99%.

Any stake purchase will remain subject to applicable statutory provisions, regulatory requirements and conditions specified by the RBI.

RBI Had Earlier Cleared HDFC Bank Stake

The latest approval follows a similar clearance granted by the RBI last month, allowing LIC to acquire up to 9.99% of HDFC Bank’s paid-up share capital or voting rights.

LIC held a 4.11% stake in HDFC Bank as of August 14.

LIC, ICICI Bank Shares in Focus

On Friday, LIC shares closed 1% lower at Rs 415.25 on the BSE. The stock has traded between a 52-week low of Rs 361 and a high of Rs 468.30.

Meanwhile, ICICI Bank shares ended 0.14% lower at Rs 1,423. The private lender’s stock has touched a 52-week high of Rs 1,479.90 and a low of Rs 1,187.55.

The RBI approval gives LIC flexibility to increase its investment in ICICI Bank within the prescribed regulatory framework.