NEW DELHI: The RBI has permitted LIC to acquire 9.9 per cent stake HDFC Bank, the largest private sector lender informed the stock exchange on Thursday.
“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 Life Insurance Corporation of India (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 Ltd,” the bank said in its regulatory filing.
As per an agency report, citing two sources familiar with the HDFC Bank’s thinking, it will take 4-5 years to fully digest its merger with its parent last July but expects to restore a key financial metric to pre-merger levels at the end of that period.