Temasek, Carmignac said to be in talks for ICICI insurance stake

The lender plans to complete the pact to sell about 5% of ICICI Prudential Life Insurance by March-end

ICICI Bank Ltd, India's largest private- sector lender, is in talks to sell a part of its stake in an insurance unit to Temasek Holdings and Carmignac Gestion for about $300 million, people familiar with the matter said.

The Mumbai-based lender plans to complete an agreement to sell about five per cent of ICICI Prudential Life Insurance by March-end, the people said, asking not to be identified.

Singapore's state investment company and Carmignac, the Paris-based asset manager, are pursuing the purchase after Prime Minister Narendra Modi allowed more foreign investment in the insurance sector.

ICICI follows Housing Development Finance Corp in attracting investors to its insurance venture ahead of planned initial public offerings.

"Inflation is the key data to watch for," said Anoop Verma, vice president for treasury at DCB Bank Ltd. in Mumbai.