After HDFC, LIC Bets Big on ICICI Bank; Both Stocks in Focus on Monday

Continuing to increase its stake in the banking sector, LIC has now placed a major bet on ICICI Bank. LIC has received approval from the RBI to raise its stake in ICICI Bank to 9.99%.

Investors will keep a close watch on two major stocks during trading on Monday: LIC (Life Insurance Corporation) and ICICI Bank. The Reserve Bank of India (RBI) has officially approved LIC—the country's largest state-owned insurance company—to increase its total stake in the private sector giant ICICI Bank to 9.99%.

According to an exchange filing made by ICICI Bank on Saturday, the RBI granted this approval on September 4, 2026; consequently, when trading begins on Dalal Street on Monday (September 7, 2026), both these stocks will be high on investors' radar.

What is LIC's current stake in ICICI Bank?

According to ICICI Bank's shareholding pattern for the April–June 2026 quarter, LIC holds 311,817,010 shares of the bank, representing 4.35% of the bank's net paid-up capital. This accounts for more than half of the total stake held by insurance companies in ICICI Bank. Now, with this new approval from the Reserve Bank, the path is clear for LIC to more than double its stake in ICICI Bank (adding another 5.64%).

As of the June 2026 quarter, insurance companies held an 8.24% stake in ICICI Bank. Another major insurance company holding a stake in ICICI Bank is SBI Life Insurance Company Limited, which holds a 1.43% stake.

What condition has the RBI imposed? It is worth noting that this major corporate deal between LIC and ICICI is subject to certain conditions and approvals. The primary condition is that LIC must complete the process of acquiring the additional stake within the next year—specifically, before September 4, 2027. Failure to do so would result in the cancellation of the RBI's approval.

Investors should also take particular note that this is a 'regulatory approval' granted by the Reserve Bank; it does not necessarily mean that LIC will immediately purchase the full 9.99% stake. LIC has the flexibility to acquire the shares gradually, based on market valuations.