Politics · India Bureau
RBI Clears LIC to Build 9.99% Stake in ICICI Bank
India's central bank has granted regulatory approval for Life Insurance Corporation to acquire up to 9.99 per cent of ICICI Bank's equity within the next 12 months. The move is subject to standard regulatory conditions.
LSN India ·
The Reserve Bank of India has given its nod for LIC to gradually build a significant shareholding in ICICI Bank, one of the country's largest private sector lenders. The approval allows the state-owned insurer to accumulate up to 9.99 per cent of the bank's paid-up share capital or voting rights over the coming year.
By capping the acquisition at just under 10 per cent, the regulatory framework ensures that LIC will not trigger open offer obligations under India's takeover code, which typically applies once an investor crosses the 25 per cent threshold. This structure allows for a substantial investment while maintaining clear governance parameters.
The move marks a notable deepening of institutional ties between two major financial services players in India's economy. LIC, which manages vast insurance corpus funds, has long been an active investor in India's banking sector. ICICI Bank, headquartered in Mumbai, has a strong retail and corporate client base across the country.
The acquisition will be subject to regulatory conditions laid out by the RBI, ensuring compliance with banking sector norms and prudential requirements. Financial details regarding valuation or the pace of LIC's share purchases were not specified in the regulatory approval.