HDFC Bank on Thursday said in a regulatory filing that the Reserve Bank of India (RBI) has granted approval to Life Insurance Corporation (LIC) to acquire a 9.99% stake in the private sector lender.

“Pursuant to Regulation 30 of the SEBI Listing Regulations, we would like to inform you that the Reserve Bank of India (RBI) vide its letter dated January 25, 2024 addressed to (LIC), has accorded its approval to LIC for acquiring aggregate holding up to 9.99% of the paid-up share capital or voting rights of HDFC Bank Limited,” the bank said in its regulatory filing. The approval has been granted with reference to the application made by LIC to the central bank. The approval is subject to the conditions including compliance with the provisions of the Banking Regulation Act, 1949, the RBI’s Master Direction and Guidelines on Acquisition and Holding of Shares or Voting Rights in Banking Companies dated January 16, 2023, provisions of the Foreign Exchange Management Act, 1999, and provisions of the regulations issued by Securities and Exchange Board of India. LIC has been advised by the RBI to acquire the aforesaid major shareholding in the bank within a period of one year, i.e. by January 24, 2025. Further, LIC must ensure that the aggregate holding in the bank does not exceed 9.99% of the paid-up share capital or voting rights of the bank at all times. Shares of HDFC Bank closed 1.4% lower on Thursday, while the broader NSE Nifty was down 0.5%. For the October-December period, HDFC Bank reported a 2.65 per cent rise in consolidated net profit of 17,258 crore against 16,811 crore in the preceding September quarter. The largest private sector lender, which merged mortgage lender parent HDFC into itself in July, reported a net profit of 16,372 crore against 15,976 crore in the quarter-ago period on a standalone basis. “HDFC Bank reported a mixed quarter,” according to a report by Motilal Oswal Research. Its core net interest income grew to 28,470 crore during the quarter, while the other income stood at 11,140 crore, according to exchange filings. On the asset quality front, the bank registered an improvement in the gross non-performing assets ratio at 1.26 per cent against 1.34 per cent in the quarter-ago period. LIFE INSURANCE CORPORATION OF INDIA Livemint tops charts as the fastest growing news website in the world to know more.

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