RBI has allowed Life Insurance Corporation of India (LIC) to acquire up to 9.99% stake in HDFC Bank.

The acquisition is subject to certain conditions set by the RBI, including that LIC must not increase its holding in HDFC Bank beyond 9.99% for a period of five years.

HDFC Bank's net profit for the October-December quarter of 2023-24 was Rs 16,372 crore, up from Rs 12,259 crore a year ago.

The bank's gross non-performing assets (NPA) stood at 1.26 percent, up from 1.23 percent last year.

This could improve the outlook for HDFC Bank's stock, which has declined recently. Some experts believe that LIC's purchase could help to stabilize HDFC Bank's share price.