ICICI Bank Board Approves to Raise Stake in ICICI Lombard to Over 50%

By Malvika Gurung

Investing.com -- India’s second-largest private sector lender ICICI Bank (NS: ICBK ) announced on Sunday that its Board of Directors approved to raise its shareholding in the general insurer ICICI Lombard General Insurance Company (NS: ICIL ) to over 50%.

ICICI Bank’s shareholding in the insurance major stood at 48.02% as on March 31, 2023, and now its Board has given a green flag to increase its stake in ICICI Lombard by up to 4% in multiple tranches.

The banking behemoth will acquire at least a 2.5% stake in ICICI Lombard before September 9, 2024, out of the approved 4%.

As per the guidelines of the Reserve Bank of India (RBI), banks can own a shareholding of either less than 30% in insurance companies or more than a 50% stake.

ICICI Bank had earlier on March 10 informed the bourses that RBI had granted it an extension in the timeline for divesting its shareholding in ICICI Lombard to less than 30% of the company’s paid-up capital till September 9, 2024.

The Mumbai-headquartered banking giant’s shares gained 0.7% in Monday’s morning trade, hitting an intraday high of Rs 957.6 apiece in the session.

Further, ICICI Bank’s Board of Directors approved the reappointment of Sandeep Batra as the Executive Director for five years, starting the date of approval of RBI.