The Reserve Bank of India (RBI) has approved the Life Insurance Corporation of India (LIC) to increasing its ownership in IndusInd Bank to as much as 9.99 percent. The insurer holds 4.95 per cent in the private lender.

In the Bombay Stock Exchange regulatory filing,  the IndusInd stated that the RBI informed them of the permission on Thursday. The clearance is conditional on adherence to a number of regulations and rules, including the Master Direction on "Ownership in Private Sector Banks" and the SEBI’s regulations. The approval is only valid for a year, until December 8, 2022.

To grow your share in a private bank beyond 5 percent, you must get permission from the RBI. On the BSE, IndusInd Bank's stock was trading 0.81 percent higher at Rs 954 per share.

LIC is one of India's largest institutional investors in the stock market, with holdings in both private and public sector banks. According to Capitaline account, it owns shares in 24 scheduled commercial banks. IDBI Bank is owned by it and it owns 49.24 percent of it. LIC owns 8.8 percent of Canara Bank, 8.3 percent of Punjab National Bank and State Bank of India, 8.2 percent of Axis Bank, and 7.6 percent of ICICI Bank, among other important banks.

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