The Reserve Bank of India RBI has accorded its approval to Life Insurance Corporation of India (LIC) for acquiring an aggregate holding of up to 9.99% of the paid-up share capital or voting rights in HDFC Bank Ltd., the bank said in a filing with the exchanges on Wednesday (August 19, 2026) night.

“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,” it said.

The approval has been granted with reference to the application made by LIC to RBI. The aforesaid approval granted by RBI is subject to the conditions mentioned therein, including compliance with the relevant provisions of the Banking Regulation Act, it added.

The approval came on a day when HDFC Bank’s stock hit 52 weeks low in intraday trade to ₹715.05 before recovering a bit to close at ₹720.15, down 0.42%. 

The stock has been under pressure due to below-expectations financial performance in the last quarter, the sudden resignation of its previous part-time chairman and the lack of clarity on the term extension if it’s MD & CEO, Sashidhar Jagdishan, post 26 October 2026.