The bank currently holds a 48.02 per cent stake in ICICI Lombard General Insurance Company and would acquire at least a 2.5 per cent stake out of the 4 per cent to make the insurer its subsidiary before September 9, 2024
Mumbai:
Banking regulator Reserve Bank of India(RBI) has allowed ICICI Bank increase its shareholding by another 4 per cent in ICICI Lombard General Insurance in multiple tranches to make the insurer a subsidiary of the bank.
The bank currently holds a 48.02 per cent stake in ICICI Lombard General Insurance Company Limited and would acquire at least a 2.5 per cent stake out of the 4 per cent to make the insurer its subsidiary before September 9, 2024.
The bank will start increasing its share after certain other statutory/regulatory approval(s), said the bank in a regulatory filing.
ICICI Bank in May had said its board had approved a plan to raise its stake in general insurance arm ICICI Lombard by 4 per cent in the next 16 months.
At the current trading market price, the bank will have to shell out about Rs 2,352.5 crore to acquire a 4 per cent shareholding.
The bank, in March, had said the RBI had asked ICICI Bank to bring down its holding to less than 30 per cent in ICICI Lombard by September 9, 2024.
However, the Board approved an increase in shareholding in the company, in multiple tranches up to 4 per cent additional shareholding, as permissible under applicable law, to ensure compliance with Section 19(2) of the Banking Regulation Act, 1949 and make the company, a subsidiary of the bank, subject to receipt of necessary regulatory approval.