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ICICI Bank board clears plan to raise stake in ICICI Lombard by 4%
May 29, 2023
The ICICI Bank board has approved raising its stake in ICICI Lombard General Insurance by 4 percent in multiple transactions, according to an exchange filing on May 28.
The bank owns 48.02 percent in the general insurance arm. ICICI Bank plans to acquire at least 2.5 percent of the 4 percent by September 9, 2024.
In insurance ventures, banks can hold either less than 30 percent or more than 50 percent in accordance with the Reserve Bank of India guidelines.
ICICI Bank, the country’s second-largest private sector lender, had earlier sought to reduce its stake in the general insurer to below 30 percent. The bank had requested a delay in diluting the stake until September 9, 2024, and the regulator had granted the request.
The RBI gave HDFC Bank permission to increase its stake in HDFC Life Insurance and HDFC Ergo General Insurance above 50 percent before the merger went into effect.
ICICI Bank also informed the exchanges that its board had approved the reappointment of Sandeep Batra as executive director for two more years, effective December 23, 2023, to December 22, 2025, subject to RBI approval. “The Board noted that this renewed term of two years is within the five years term as previously approved by the shareholders,” it said.
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