RBI Grants Approval to ICICI Bank for Stake Increase in ICICI Lombard

7 Aug 2023 , 10:25 AM

The Reserve Bank of India (RBI) has given approval to ICICI Bank for raising stake in its subsidiary, ICICI Lombard General Insurance Company Limited. The approval allows ICICI Bank to increase its stake in ICICI Lombard by up to 4% in multiple tranches.

ICICI Bank informed the Indian stock market bourses about receiving the RBI’s approval, subject to certain regulatory approvals. The bank’s Board of Directors had earlier approved increasing shareholding in ICICI Lombard in compliance with Section 19(2) of the Banking Regulation Act, 1949, to make it a subsidiary of the bank.

On August 4, 2023, ICICI Bank received RBI’s approval, and other statutory/regulatory approvals are awaited for the stake increase. As of March 31, 2023, ICICI Bank holds 48.02% stake in ICICI Lombard.

The bank plans to acquire at least 2.5% of the above 4.0% stake increase before September 9, 2024. RBI had granted an extension to ICICI Bank till September 9, 2024, to divest its shareholding in ICICI Lombard to less than 30% of the company’s paid-up capital.

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