Life Insurance Corporation Housing Development Finance Corporation LIC to boost HDFC stake with RBI approval (9.99%)

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.

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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.

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

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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.

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