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ICICI Bank gains on exemption from paring stake in insurance subsidiaries

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ICICI Bank rose 2.03% to Rs 371.05 after the bank on Monday (14 September) said it has got exemption from paring stake in its life and non-life subsidiaries to 30% for a period of three years.

"The Central Government on the recommendation of the Reserve Bank of India has vide notification dated September 9, 2020 as published in the weekly Gazette of India for September 6-12, 2020 received by ICICI Bank today, exempted ICICI Bank from the provisions of Section 19(2) of the Banking Regulation Act, 1949 with respect to shareholding above 30.0% in ICICI Lombard General Insurance Company Limited and ICICI Prudential Life Insurance Company Limited, for a period of three years from the date of the notification," said the bank in its stock exchange notification.

"As previously announced by ICICI Lombard General Insurance Company Limited, it has proposed an acquisition of another general insurance business, which if consummated would result in ICICI Bank's shareholding in ICICI Lombard General Insurance Company Limited reducing to less than 50%. The above exemption would facilitate compliance with the Banking Regulation Act," the bank further added.

ICICI Bank said there are no current plans to divest to less than 50% shareholding in ICICI Prudential Life Insurance Company.

ICICI Bank held 51.37% stake in ICICI Prudential Life Insurance Company and 51.89% stake in ICICI Lombard General Insurance Company as on 30 June 2020.

ICICI Bank is one of India's leading private banks. The private sector lender posted reported a 36.2% rise in net profit to Rs 2599.15 crore on a 21.8% jump in total income to Rs 26069.95 crore in Q1 June 2020 over Q1 June 2019.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Tue, September 15 2020. 09:48 IST