HDFC Bank share price rose as much as 1% on NSE in Thursday’s trading session after Life Insurance Corporation of India (LIC) got approval from RBI to increase its stake from 4% to 10%.
HDFC Bank share price opened at ₹725.50 apiece today, as compared to previous close of ₹720 on Wednesday. The banking stock touched an intraday high of ₹727.80 on 20 August.
LIC buys additional stake in HDFC Bank
Private sector lender HDFC Bank said on Wednesday, August 19, that the Reserve Bank of India (RBI) has approved Life Insurance Corporation of India (LIC) acquiring an aggregate stake of up to 9.99% in the bank’s paid-up share capital or voting rights.
As of the latest available beneficial position on August 14, 2026, LIC held a 4.11% stake in HDFC Bank’s total share capital. The RBI communicated its approval through a letter dated August 19, following an application filed by LIC.
The approval is subject to certain conditions, including compliance with the Banking Regulation Act, 1949, the Reserve Bank of India (Commercial Banks – Acquisition and Holding of Shares or Voting Rights) Directions, 2025, the Foreign Exchange Management Act, 1999, SEBI regulations, and other applicable laws, regulations and guidelines.
“We would like to inform you that the Reserve Bank of India (“RBI”) vide its letter dated August 19, 2026, has accorded its approval to Life Insurance Corporation of India (“LIC”), for acquiring aggregate holding up to 9.99% of the paid-up share capital or voting rights in HDFC Bank Limited (“the Bank”). As per the latest available beneficial position i.e. as on August 14, 2026, LIC holds 4.11% of the total share capital of the Bank,” the bank said in the filing.
Meanwhile, domestic investors have been steadily increasing their holdings in HDFC Bank. Mutual funds raised their stake in the lender to 30.62% in the June quarter, up from 29.54% in March, shareholding data showed.
In contrast, foreign portfolio investors (FPIs) have continued to reduce their exposure to the bank, with their stake declining for at least five consecutive quarters.
HDFC Bank share price trend
HDFC Bank share price trend has remained under pressure amid weak market sentiments. The banking stock has slipped 6.66% in a month and 26.77% on year-to-date (YTD) basis.
Furthermore, the stock has declined over 27% in a year, 9% in three years and 4.17% in the last five years.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
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