The Reserve Bank of India has approved Life Insurance Corporation of India, or LIC, to acquire up to 9.99% of ICICI Bank. The approval covers the bank’s paid-up share capital or voting rights.
ICICI Bank disclosed the approval in a regulatory filing on Saturday, September 5, 2026. The RBI approval letter is dated September 4. ICICI Bank said it received a copy of the letter at 9:09 pm that same day.
The approval is valid for one year from the date of the letter. If LIC does not act within that period, the approval will stand cancelled.
The clearance is conditional. ICICI Bank said it is subject to compliance with applicable statutory and regulatory provisions.
The RBI nod does not mean LIC has already raised its holding. It gives LIC the room to increase its stake over the next year. Any purchase must follow the central bank’s conditions and other rules.
Under RBI norms, an investor needs prior approval to raise a stake in a private bank beyond 5%. LIC is one of the largest institutional investors in Indian equities. It holds stakes in a wide set of public and private banks.
This is the second such approval for LIC in as many months. Last month the RBI cleared LIC to acquire up to 9.99% of HDFC Bank. LIC held 4.11% of HDFC Bank as of August 14, 2026.
What this means for you: Watch ICICI Bank’s shareholding disclosures over the next four quarters. Any actual buying by LIC will show up there, not in the approval itself.
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Disclaimer: This article is for information only and is not investment advice. StartupFeed and its authors are not SEBI-registered investment advisors. Please speak to a SEBI-registered advisor before investing.
