The Reserve Bank of India has approved the Life Insurance Corporation of India (LIC) to acquire an aggregate holding of up to 9.99% in ICICI Bank<\/strong>, giving India’s largest insurer the option to significantly increase its stake in the private-sector lender.<\/p>\n\n\n\n The approval covers up to 9.99% of ICICI Bank’s paid-up share capital or voting rights. The RBI approval letter was dated September 4, 2026<\/strong>, and was received by ICICI Bank later that day.<\/p>\n\n\n\n LIC Currently Holds 4.35%<\/strong><\/p>\n\n\n\n LIC already has a substantial investment in ICICI Bank. As of June 30, 2026, the insurer held around 31.18 crore shares<\/strong>, equivalent to approximately 4.35%<\/strong> of the bank’s paid-up capital.<\/p>\n\n\n\n The new approval therefore gives LIC considerable room to increase its holding, potentially more than doubling its current stake if it chooses to use the entire permitted limit.<\/p>\n\n\n\n However, the RBI clearance does not mean LIC has already purchased the additional shares<\/strong>. It is regulatory permission that enables the insurer to make the acquisition.<\/p>\n\n\n\n One-Year Deadline<\/strong><\/p>\n\n\n\n LIC has been given one year from the date of the RBI approval<\/strong> to acquire the stake. If the acquisition is not completed within that period, the approval will lapse.<\/p>\n\n\n\n Any purchase will also remain subject to applicable statutory and regulatory requirements.<\/p>\n\n\n\n This means the market will now watch LIC’s future shareholding disclosures to determine whether the insurer actually increases its position and, if so, how close it moves toward the 9.99% ceiling.<\/p>\n\n\n\n ICICI Bank Has Strong Institutional Ownership<\/strong><\/p>\n\n\n\n ICICI Bank already has significant institutional participation. Insurance companies held about 8.24%<\/strong> of the bank at the end of June 2026, with LIC accounting for more than half of that holding.<\/p>\n\n\n\n Mutual funds were even larger shareholders, collectively owning around 29.60%<\/strong> of ICICI Bank.<\/p>\n\n\n\n LIC’s potential increase would therefore further strengthen the presence of long-term institutional investors in the bank.<\/p>\n\n\n\n![\"LIC](\"https:\/\/trak.in\/stories\/wp-content\/uploads\/2026\/09\/Screenshot-2026-09-07-at-10.04.51-AM-1024x589.png\")
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