LIC Stake in HDFC Bank: Reserve Bank of India has approved LIC to increase stake in private sector bank HDFC Bank.
LIC To Buy More Stake in HDFC Bank: Life Insurance Corporation of India (LIC) has got approval to increase its stake in HDFC Bank, the country’s largest private sector bank. LIC will now be able to buy up to 9.99 percent stake in HDFC Bank. The Reserve Bank of India has given permission to this government insurance company to increase its stake. In this matter, LIC had applied to RBI some time ago. At present LIC holds 5.19 percent stake in HDFC Bank.
According to the information given by HDFC to the stock market, RBI has advised LIC to buy more stake in HDFC Bank within a year. Along with this, RBI has also ordered LIC not to increase its stake in the bank by more than 9.99 percent.
It is necessary to take approval from RBI-
According to the rules of the Reserve Bank, if any entity wants to buy more than 5 percent stake in any bank, then it is necessary to take the permission of the Reserve Bank. At the same time, no permission is required to buy less than 5 percent stake.
Big fall in HDFC Bank shares
HDFC Bank had announced the results for the third quarter of the financial year 2023-24 on January 16. In this quarter, the bank’s profit has increased by 33.5 percent to Rs 16,372 crore. Whereas in the same period in the last financial year, the bank’s profit was Rs 12,259 crore. At the same time, the total income of the bank has increased from Rs 51,208 crore in the same quarter of the last financial year to Rs 81,720 crore.
After the third quarter results, there was heavy selling in HDFC shares and the bank’s shares reached a 52-week low last week. On Thursday, a fall of 1.04 percent was seen in the bank’s shares and it closed at Rs 1,440.70. Whereas the Sensex fell 0.51 percent and closed at 70,700.67 on the last trading day of the week.
