ICICI Bank nixes holding firm stake sale

ICICI Bank has shelved plans to divest stake in a holding company that was to be created for its insurance and mutual fund businesses, after failure to get the Reserve Bank nod for such a company.

ICICI Bank had received approval from the Foreign Investment Promotion Board and the Insurance Regulatory and Development Authority for the proposed holding company "" ICICI Financial Services.

But since RBI has not given its approval, ICICI Bank today announced cancellation of offer to sell a stake in the proposed company.

"ICICI Bank had received definitive offers from investors for subscription to equity shares of the proposed new subsidiary... The arrangement was subject to regulatory approvals from RBI, IRDA and FIPB... As the agreed date has elapsed and this requirement has not been satisfied, the arrangement with respect to the offers stands terminated," the bank informed the BSE.

The new subsidiary was proposed for transfer of ICICI Bank's equity shareholding in ICICI Prudential Life Insurance Company Ltd, ICICI Lombard General Insurance Company Ltd, ICICI Prudential Asset Management Company Ltd, and ICICI Prudential Trust Ltd.