LIC gets central bank approval to hike stake in IndusInd Bank to 9.99%

The Reserve Bank of India has approved the Life Insurance Corporation of India (LIC) to raise its stake in IndusInd Bank by up to 9.99 per cent. The insurer holds 4.95 per cent in the private lender.

The bank, in a BSE filing, said it the central bank told it about the approval on Thursday. The approval is subject to compliance with various regulations and rules including Master Direction on 'Ownership in Private Sector Banks and regulations of the Securities and Exchange Board of India.

The approval is valid for one year--that is up to December 8, 2022.

As per RBI norms, approval is required to increase stake in private banks beyond 5 per cent. IndusInd Bank stock was trading 0.81 higher at Rs 954 per share on the BSE.

In November, the RBI allowed LIC to raise its stake in Kotak Mahinda Bank by up to 9.99 per cent.

LIC is one of the biggest institutional investors in India’s stock market and has a stake in a number of private and public sector banks. It has stakes in as many 24 scheduled commercial banks, data from Capitaline shows.

It holds 49.24 per cent stake in IDBI Bank. Among other major banks, LIC holds 8.8 per cent in Canara Bank, 8.3 per cent in Punjab National Bank and State Bank of India, 8.2 per cent in Axis Bank, and 7.6 per cent in ICICI Bank.