ICICI to move ahead with its plan to increase 4% stake in Lombard business

ICICI Bank is set to raise its stake in ICICI Lombard General Insurance by four percentage points after its board of directors approves the decision. In a May 28 stock filing, the bank said the process would involve multiple transactions.

According to the Reserve Bank of India (RBI) guidelines, banks can either own less than 30 percent or more than 50 percent stake in the insurance business, it was reported. Moneycontrol (MC). The decision to increase the stake by four per cent will increase ICICI Bank’s ownership in ICICI’s insurance business to above 52 per cent, in line with the Reserve Bank of India (RBI) rule.

Earlier, ICICI Bank wanted to dilute its stake in the insurance business to less than 30 percent, and MC The report said. In a similar move, the Reserve Bank of India has given HDFC Bank permission to increase its stake in HDFC Life Insurance and HDFC Ergo General Insurance beyond 50 percent.

ICICI Bank also informed the exchanges that its board of directors has decided to re-appoint Sandeep Batra as CEO for another two years, from December 23, 2023 to December 22, 2025, according to the report. However, this decision is not yet approved by the Reserve Bank of India.