ICICI Bank said it got approval from Reserve Bank of India (RBI) to increase its stake in ICICI Lombard General Insurance, its general insurance subsidiary, the lender said in a stock exchange filing on Saturday.
The bank said certain other statutory/regulatory approval(s) are awaited in this regard.
In May this year, ICICI Bank said its board of directors approved the increase in shareholding in ICICI Lombard as it aims to establish the company as a subsidiary of ICICI Bank.
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Under the new arrangement, the bank is planning to acquire an additional 4 per cent stake in multiple tranches, in line with applicable laws, to ensure compliance with Section 19(2) of the Banking Regulation Act, 1949, according to an announcement to the stock exchanges.
At least 2.5 per cent of the 4 per cent stake is expected to be acquired by September 9, 2024.
“The Bank, in its disclosure filed with the stock exchanges on May 28, 2023, had communicated that its Board of Directors had approved an increase in the shareholding in ICICI Lombard General Insurance Company Limited (“Company”), in multiple tranches up to 4.0% additional shareholding, as permissible under applicable law, to ensure compliance with Section 19(2) of the Banking Regulation Act, 1949 and make the Company, a subsidiary of the Bank, subject to receipt of necessary regulatory approval(s),” the bank said in a regulatory filing.
Earlier, in a disclosure filed with the stock exchanges on March 10, ICICI Bank had said that it had received an extension from the RBI for divesting its shareholding in ICICI Lombard General Insurance Company.
Due to this, ICICI Bank is allowed to retain a stake of more than 30 per cent but below 48.02 per cent of the company’s paid-up capital until September 9, 2024.
Last month, ICICI Bank reported that its standalone profit after tax (PAT) for the June quarter stood at Rs 9,648 crore, which is 39.7 per cent higher than the year-ago period. The bank reported a net profit of Rs 6,905 crores in Q1 FY23.
The core operating profit grew by 35.2 per cent YoY to Rs 13,887 crore in Q1 while fee income grew by 14.1 per cent YoY to Rs 4,843 crore.
Its net interest income (NII) increased by 38 per cent YoY to Rs 18,227 crore in the April-June quarter, while the net interest margin (NIM) was 4.78 per cent in Q1 compared to 4.01 per cent in Q1 of FY23 and 4.90 per cent in Q4 of FY23.
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The gross NPA customer assets for Q1 FY24 was Rs 31,822,39 crore as compared to Rs 31,183.70 in Q4 FY23.
The bank’s retail loan portfolio expanded by 21.9 per cent YoY and 4.5 per cent sequentially, and comprised 54.3 per cent of the total loan portfolio.
The business banking portfolio grew by 30.4 per cent YoY, while the domestic corporate portfolio grew by 19.3 per cent YoY.
The bank deposits recorded a growth of 17.9 per cent to Rs 12,38,737 crore, while its domestic loan portfolio grew by 20.6 per cent to Rs 10,25,310 crore in the June quarter of FY24.
On Friday, shares of ICICI Bank closed at Rs 970.75, up by 0.54 per cent.
