New Delhi, Sep 5 (IANS) The Reserve Bank of India (RBI) has approved state-owned insurer Life Insurance Corporation of India (LIC) to acquire an aggregate holding of up to 9.99 per cent of the paid-up share capital or voting rights in ICICI Bank, the private lender said in a regulatory filing on Saturday. 

ICICI Bank said it received a copy of the RBI's approval letter -- dated September 4 -- at 9:09 pm on the same day.

The approval allows LIC to acquire the stake within one year from the date of the RBI approval letter, failing which the approval will stand cancelled.

However, the approval is subject to certain conditions, including compliance with applicable statutory and regulatory provisions, the bank said.

Moreover, the central bank's nod does not mean LIC has immediately increased its holding in ICICI Bank to 9.99 per cent.

Any acquisition will have to be undertaken in accordance with the conditions laid down by the central bank and other applicable regulatory norms, according to the private bank.

In a separate development last month, RBI had approved LIC's application to acquire up to 9.99 per cent of HDFC Bank's paid-up share capital or voting rights. HDFC Bank had said LIC held 4.11 per cent of its total share capital as of August 14.

The approval for ICICI Bank gives LIC flexibility to increase its holding in the private sector lender, subject to applicable regulatory and statutory requirements.

Shares of LIC on Friday ended at Rs 415.25, a decrease of more than one per cent on the BSE. The stock has touched a 52-week high of Rs 468.30 and a 52-week low of Rs 361, according to the exchange.

While ICICI Bank shares closed at Rs 1,423, down 0.14 per cent on the aforesaid exchange. The stock recorded a 52-week high of Rs 1,479.90 and a 52-week low of Rs 1,187.55.