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ICICI Bank: iStartup2.0It offers significant convenience to founders/entrepreneurs as it saves time and efforts. (REUTERS)

ICICI bank gets exemption for shareholding in 2 insurance arms

  • While the bank has no current plans for divesting stake to less than 50% in the life insurance co, it is looking to bring down its stake in the general insurance
  • Last month, ICICI Lombard had said that its board has approved a proposal to merge Bharti AXA’s non-life insurance business with itself

Mumbai: ICICI Bank, on Monday, said it has been exempted from provisions of the Banking Regulation Act relating to its investments in its insurance companies.

“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.

While the bank has no current plans for divesting stake to less than 50% in the life insurance company, it is looking to bring down its stake in the general insurance.

“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," said the bank in its stock exchange notification.

Last month, ICICI Lombard had said that its board has approved a proposal to merge Bharti AXA’s non-life insurance business with itself. The deal would result in the emergence of the third largest non-life insurer in India.

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