A regulatory filing says the approval covers a holding of up to 9.99% of ICICI Bank’s paid-up share capital. LIC owned 4.35% as of June 2026, so the permission gives it room to substantially increase its investment in India’s second-largest private sector bank.

The central bank’s approval letter carries the date September 4, 2026. LIC must complete the purchases within the stipulated year, failing which the permission will lapse in September 2027. Additional regulatory requirements also apply, though their details have not been stated in the supplied report.

The ceiling matters because LIC is already IDBI Bank’s promoter. It owns 49.24% of IDBI Bank, while the Centre has a 45.48% holding. Under the rules described in the report, LIC’s ownership in another commercial bank cannot exceed 10%, making the approved ICICI Bank limit slightly lower than that threshold.

LIC already has sizeable investments across banks: 8.53% in SBI, 4.77% in HDFC Bank, 7.87% in Axis Bank, 8.83% in Punjab National Bank and 5.14% in Bank of Baroda. CEO R. Doraiswamy has linked these investments to supporting national development and said they are delivering good returns.