ICICI Bank given time till Sept 2024 to pare stake in ICICI Lombard

Lender currently holds a little over 48% in the general insurer; must bring that down to 30%

The Reserve Bank of India (RBI) has approved private sector lender ICICI Bank’s request seeking extension of time till September 9, 2024 for divesting its shareholding in its general insurance subsidiary, ICICI Lombard General Insurance, below 30 per cent.

In a stock exchange notification, the bank said, “… we would like to inform that ICICI Bank Ltd (Bank) is in receipt of a letter dated March 10, 2023 from the Reserve Bank of India conveying its approval to the Bank’s request for extension of time till September 9, 2024 for divesting the Bank’s shareholding in ICICI Lombard General Insurance Company Limited (Company) to less than 30 per cent of the Company’s paid up capital subject to the conditions of Government of India’s notification”.

According to a government notification issued in September 2020, no banking company shall hold shares in any company, whether as pledgee, mortgagee or absolute owner, of any amount exceeding 30 per cent of the paid-up share capital of that company or 30 per cent of its own paid-up share capital and reserves.

ICICI Bank currently holds a little over 48 per cent in ICICI Lombard General Insurance.