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Business News/ Industry / Banking/  ICICI bank gets exemption for shareholding in 2 insurance arms
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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
  • ICICI Bank: iStartup2.0It offers significant convenience to founders/entrepreneurs as it saves time and efforts. (REUTERS)Premium
    ICICI Bank: iStartup2.0It offers significant convenience to founders/entrepreneurs as it saves time and efforts. (REUTERS)

    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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    ABOUT THE AUTHOR
    Gopika Gopakumar
    Gopika Gopakumar has worked for over 15 years as a banking journalist across print and television media. Her expertise lies in breaking big corporate stories and producing news based TV shows. She was part of the 2013 IMF Journalism Fellowship Program where she covered the Annual & Spring meetings of the International Monetary Fund in Washington D.C. She started her career with CNBC-TV18, where she also produced a news feature show called Indianomics and an award winning show on business stories from South India called Up South. She joined Mint in 2016.
    Catch all the Industry News, Banking News and Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
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    Published: 14 Sep 2020, 10:20 PM IST
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