ICICI Bank to raise stake in ICICI Lombard

Mumbai: ICICI Bank's board of directors approved an increase in shareholding in the lender's general insurance subsidiary, ICICI Lombard General Insurance, as it aims to establish the company as a subsidiary of ICICI Bank.

The bank plans to acquire an additional 4% stake in multiple tranches, in line with applicable laws, to ensure compliance with Section 19(2) of the Banking Regulation Act, 1949, according to an announcement to the stock exchanges. At least 2.5% of the 4% stake is expected to be acquired by September 9, 2024.

In a disclosure filed with the stock exchanges on March 10, ICICI Bank had said that it had received an extension from the Reserve Bank of India (RBI) for divesting its shareholding in ICICI Lombard General Insurance Company Limited. As a result, ICICI Bank is allowed to retain a stake of more than 30% but below 48.02% of the company's paid-up capital until September 9, 2024.