The Reserve Bank of India has granted approval to Life Insurance Corporation of India to acquire up to 9.99% stake in ICICI Bank. The mega deal between India’s largest insurer and the country’s second-largest private sector bank must be completed within one year from the date of the approval letter.
RBI Approval Details and Timeline
ICICI Bank received a copy of the RBI letter dated September 4, 2026 at 9:09 PM on the same day. The letter was originally addressed to LIC as the applicant. Under the terms, LIC can purchase up to 9.99% of the bank’s paid-up share capital or voting rights within one year. If LIC fails to complete the acquisition within this period, the RBI approval will stand cancelled.
Current LIC Holding in ICICI Bank
As of the April to June 2026 quarter, LIC holds 31,18,17,010 shares in ICICI Bank. This represents 4.35% of the private lender’s net paid-up capital. LIC’s current stake is more than half of the total 8.24% holding that all insurance companies collectively own in the bank. SBI Life Insurance Company holds 1.43% stake in ICICI Bank.
Stock Market Impact
On Friday, LIC shares closed at Rs 416.50 on the National Stock Exchange. ICICI Bank shares ended the trading session at Rs 1,423.70 per share. Investors are expected to closely track both stocks when trading resumes on Monday. Mutual funds collectively hold 29.60% stake in ICICI Bank as of the June 2026 quarter end.
Major Mutual Fund Shareholders
SBI Mutual Fund leads with a 6.27% stake in ICICI Bank. ICICI Prudential Mutual Fund follows with 4.40%, while HDFC Mutual Fund holds 3.58%. Nippon Life India Mutual Fund owns 2.55% of the bank. Other significant holders include Axis Mutual Fund, UTI Mutual Fund, Kotak Mutual Fund, and Aditya Birla Sun Life Mutual Fund. The RBI approval marks a significant step in LIC’s growing influence in India’s banking sector.
