HDFC Bank shares rise, snap 2-day fall; LIC gets RBI nod to raise stake to 9.99%

Shares of HDFC Bank Ltd climbed in Thursday's trade, snapping a two-day losing streak, after the lender disclosed that the Reserve Bank of India (RBI) has cleared Life Insurance Corporation of India (LIC) to raise its stake in the private sector bank to up to 9.99 per cent.

At last check, the HDFC Bank stock was trading 0.98 per cent higher at Rs 727.20. However, the counter remains down 26.60 per cent on a year-to-date (YTD) basis.

HDFC Bank informed the stock exchanges that the RBI, through a letter dated August 19, 2026, approved LIC's proposal to acquire an aggregate holding of up to 9.99 per cent of the bank's paid-up share capital or voting rights.

"As per the latest available beneficial position, i.e. as on August 14, 2026, LIC holds 4.11 per cent of the total share capital of the Bank," HDFC Bank said in its exchange filing.

"The approval has been granted with reference to the application made by LIC to RBI. The aforesaid approval granted by RBI is subject to the conditions mentioned therein including compliance with the relevant provisions of the Banking Regulation Act, 1949, Reserve Bank of India (Commercial Banks - Acquisition and Holding of Shares or Voting Rights) Directions, 2025, provisions of the Foreign Exchange Management Act, 1999, regulations issued by Securities and Exchange Board of India, and any other statutes, regulations and guidelines, as applicable," it added.

What analysts say

HDFC Bank's stock has faced pressure in recent months amid concerns surrounding the lender following the sudden resignation of its former chairman Atanu Chakraborty.

Sunny Agrawal, Head - Fundamental Research at SBI Securities, said the stock is trading at a reasonable valuation, although investors may have to wait for a sustained recovery.

"The stock is trading at a reasonable valuation, but a gradual recovery could take at least two to three quarters. Investors with a slightly longer investment horizon can consider HDFC Bank," Agrawal told Business Today.

Meanwhile, analysts at Bajaj Broking said HDFC Bank delivered a decent performance despite a challenging operating environment and higher funding costs.

According to the brokerage, the bank's net interest income (NII) and net profit rose around 7 per cent and 5 per cent year-on-year (YoY), respectively. Bajaj Broking has assigned a 'Buy' call on HDFC Bank.