RBI allows LIC to acquire up to 9.99% stake in ICICI Bank
RBI has approved LIC's plan to buy up to 9.99% of ICICI Bank's paid-up capital or voting rights within a year.
The Reserve Bank of India (RBI) has given Life Insurance Corporation of India (LIC) the green light 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 lender.
ICICI Bank said it received the RBI's approval letter dated September 4 at 9:09 pm the same day. The approval is valid for one year from the date of the letter, after which it will lapse if not utilised.
The acquisition will be subject to compliance with all applicable statutory and regulatory provisions. The bank's filing noted that the approval carries conditions, including adherence to relevant legal and regulatory norms.
This development follows a similar approval granted to LIC for raising its stake in HDFC Bank to up to 9.99 per cent. In an August 19 filing, HDFC Bank confirmed that RBI had approved LIC's application to acquire an additional stake, with LIC currently holding 4.11 per cent of that bank's share capital.
LIC's shares closed at Rs 415.35 on the day of the announcement, down 0.37 per cent.