ICICI Bank board clears redemption of 350 unlisted preference shares

Private sector ICICI Bank board today approved redemption of 350 unlisted preference shares of Rs 1 crore each and decided to reclassify all kinds authorised share capital into equity.

However, the bank did not say anything with regard to review of insolvency cases which was part of board meeting agenda for today.

This is the first time ICICI Bank's board met after the controversy over alleged conflict of interest involving its CEO Chanda Kochhar and Videocon group broke out.

Necessary alterations to be carried out in the relevant capital clause of the Memorandum of Association and Article of Association of the bank which would come into effect upon redemption, ICICI Bank said in a filing to stock exchanges.

The alteration will be subject to approval of the RBI and members, it said after board meeting.

"In view thereof, the board at its meeting held today approved the redemption on the maturity date along with payment of applicable dividend at the rate of Rs 100 per annum per share of Rs 1 crore each aggregating to Rs 35,000 on the preference shares," it said.

Consequently, it said, "The board approved reclassification of authorised share capital which presently includes equity, preference shares and unclassified shares into one category equity shares."
Earlier in the day, the bank said, "ICICI Bank's board meeting being held today is a pre-scheduled board meeting convened for review of cases which are before National Company Law Tribunal under Insolvency and Bankruptcy Code, and other routine matters."