Kartik Goyal, Bloomberg
New Delhi: Temasek Holdings Pte and Government of Singapore Investment Corp. will get approval to each own as much as 10% of ICICI Bank Ltd before June, said India’s Commerce Secretary G.K. Pillai.
The Reserve Bank of India had initially raised objections because normally, under India’s banking rules, no single foreign entity is allowed to own more than 10% in a local bank.
India had previously deemed Temasek and GIC as a single entity because both are owned by the Singapore government. Prime Minister Manmohan Singh had agreed to the plan following the India-Singapore Comprehensive Economic Cooperation Agreement.
“I expect that the Reserve Bank will make the required changes in the regulation and Temasek and GIC will be able to acquire a 10% stake each in ICICI Bank,” Pillai said in an interview in New Delhi today.
He expects State Bank of India, the country’s biggest, to get a full banking license to operate in Singapore in August.