Mumbai, Aug. 20 -- Life Insurance Corporation of India (LIC), India's largest insurance company, has received approval from the Reserve Bank of India (RBI) to increase its stake in HDFC Bank to up to 9.99 per cent.

According to an HDFC Bank regulatory filing dated August 19, the RBI has approved LIC's application to acquire up to 9.99 per cent of the bank's paid-up share capital or voting rights.

The filing said the RBI "has accorded its approval to Life Insurance Corporation of India ("LIC")" for acquiring the additional stake in HDFC Bank.

As of August 14, LIC holds 4.11 per cent of HDFC Bank's total share capital. The approval would therefore give LIC the option to significantly increase its ownership in the private sector lender, s...