Shares of Life Insurance Corporation of India (LIC),  the country's largest insurer, traded 1 per cent higher on Thursday after receiving approval from the Reserve Bank of India (RBI) to increase its stake in HDFC Bank to up to 9.99 per cent. 

In its regulatory filing, HDFC Bank said 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.