ICICI Bank weighs Federal Bank exit option

ICICI Bank, which holds 20.44 per cent in the Aluva-based Federal Bank, is looking at shedding its stake in the private bank.

Nachiket Mor, executive director, ICICI Bank, on the sidelines of the bank's equity issue roadshow in Chennai, however, was non-commital.

"Yes, we are open to divesting our stake in Federal bank like we are open to holding it as well," he said.

Other ICICI Bank officials, however, said that there were no strategic reason for ICICI Bank to hold on to the stake.

If a favourable opportunity presented itself the bank will be offloading its stake. One director from ICICI Bank is represented on the board of Federal Bank.

Officials also said ICICI Bank may continue to cross-sell its products through Federal Bank even after the selling its stake.

ICICI Bank and Federal Bank had signed an MoU in October 2003 for a co-branded credit card and sharing of ATMs. Federal Bank's net profit rose 37.40 per cent to Rs 113.30 crore in the nine months to December 31, 2003.