The Reserve Bank of India (RBI) has permitted insurance giant LIC to acquire up to 9.99% stake in leading private lender HDFC Bank. LIC currently holds 5.19% shares in HDFC Bank valued at nearly ₹50,000 crore as of December 31, 2022.
![LIC Allowed To Own 9.99% Stake In HDFC Bank; Current Shares Worth Rs 49,000 Crore!](https://trak.in/stories/wp-content/uploads/2024/01/Untitled-design-8-2-1280x720-1024x576-1-1280x720-1024x576-1-1-1-1-1.jpeg)
RBI has directed LIC to increase its stake to the approved ceiling within one year by January 24, 2025. LIC has been steadily building its position in HDFC Bank over past quarters – it owned 4.1% stake as of December 2021.
Stock Under Pressure Post Q3 Results
The nod for greater ownership by LIC comes at a time when HDFC Bank stock has slid 11% in the past week amid disappointing Q3 performance. This marked its worst week since March 2020. The lender’s market value also dipped below ₹11 lakh crore – its lowest since June 2022.
Some analysts however remain bullish despite recent stumbles, citing HDFC Bank’s strong fundamentals. Top bank executives also dismissed concerns, expressing confidence in sustaining robust long-term growth trends.
But near-term challenges have emerged with HDFC Bank shares recording their fourth straight weekly loss during the truncated week. The stock is already down 15% in 2023 as growth and asset quality metrics came under scrutiny.