Athira Sethu
Kochi, 20 August 2026
HDFC Bank and Life Insurance Corporation of India (LIC) stocks may continue to attract investors’ attention on Thursday, August 20, following the announcement by Reserve Bank of India (RBI).
According to HDFC Bank, RBI had approved an application by LIC for the increase of the latter’s share in the former up to 9.99 percent of the total paid-up share capital or voting rights.
As of August 14, 2026, LIC owned 4.11 percent of HDFC Bank. The latest decision of RBI permits LIC to enhance its share in the company provided that certain conditions set by RBI and other related laws and regulations are fulfilled.
The approval is made in connection with the application sent by LIC to RBI. RBI has informed that the investment will have to comply with the relevant provisions of the Banking Regulation Act, foreign exchange laws, securities and Exchange Board of India guidelines, and other applicable norms.
Post announcement, HDFC Bank’s stock was trading 1.08 percent higher at ₹727.75 on NSE at 9:24 AM. Meanwhile, the price of LIC stock was seen up 0.65 percent at ₹415.80.
HDFC Bank’s Q1 FY27 Performance
There have been financial results reported for HDFC Bank for the June quarter as well. Its standalone net profit has grown by 5% to ₹19,060 crore, up from ₹18,155 crore in the year-ago quarter.
Its net interest income (NII) that denotes the difference between the interest earned and interest paid has risen by 7% to ₹33,530 crore from ₹31,440 crore.
But its total income has dipped to ₹92,184 crore from ₹99,200 crore a year ago. Meanwhile, operating profit has been down to ₹28,169 crore from ₹35,734 crore.
The net interest margin for the bank has been 3.26% of its total assets.
Improvement in Bad Loans
One thing worth noting has been the improvement in the asset quality of HDFC Bank. The gross NPAs have declined to 1.17% of total advances, from 1.40% in the year-ago period.
Its net NPAs have gone up to 0.41% from 0.47% in the year-ago period.
Overall, the increased investment limit of LIC and improved asset quality of HDFC Bank is expected to keep both stocks under the scanner of investors.
