RBI has  agreed  to  let  LIC  buy 9.99%  stake in HDFC Bank, India’s largest private sector bank. 

  HDFC Bank  on Thursday  announced  that the Reserve Bank of India (RBI) has  authorized  the Life Insurance Corporation (LIC) of India to acquire  9.99  per cent  stake in the company.

  “RBI  has  advised  LIC  to acquire the  said  major  stake of  the  bank  within  one  year,  i.e.  before  January 24,  2025,”  the bank said in  the  regulatory filing.  

 Pursuant to Regulation 30 of the SEBI Listing  Rules,  we would like to inform you that the Reserve Bank of India  (RBI),  vide its letter dated January 25, 2024  to  the  Life Insurance Corporation of India  (LIC ), licensed  to  LIC. . to acquire total shares amounting  to 9.99% of the paid-up share capital or voting rights of HDFC Bank Limited,” the bank  added  in its regulatory filing. 

  LIC currently  holds  5.19% stake in HDFC Bank. The insurance giant had earlier sent  a request  to  the  RBI  to increase  its  stake  in the bank.  

 RBI has advised LIC to acquire  majority stake  in HDFC Bank within  one year, i.e.  before  January 24, 2025. Further, LIC must also ensure that the shareholding  n  does not exceed 9.99  %  of  contributed  capital or voting  rights. from  the bank at  any time. 

 HDFC Bank shares  are facing difficulties in  the  market  

 This development comes as HDFC Bank shares  are attempting  to  regain  their former potential  in  the Indian stock  market,  after  witnessing  a  significant decline  due to the  company’s  quarterly  results. This  private  lending institution.  

 HDFC Bank shares  closed down 1.4 per cent at ₹1,440.70  on  Thursday.  The  private bank’s  shares  took a  hit  after the  release of its third-quarter results, which showed a modest profit  for the quarter ending  December 2023.  

 A day after the quarterly results were announced, HDFC Bank shares  fell 9%,  while  shares listed on the US  market fell about 10%  on January 17.  

 HDFC Bank reported a  2.65%  rise in consolidated net profit of ₹17,258 crore in its  third quarter results, compared  to ₹16,811 crore  reported in the quarter  ended  September 2023. 

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