Mumbai: India''s biggest private-sector bank, ICICI Bank Ltd, the country''s second largest lender after state-run State Bank of India has received Foreign Investment Promotion Board (FIPB) approval to divest 24 per cent stake in its insurance business, ICICI Financial Services, to foreign investors, sources close to the deal said.

"The proposal has been recommended for conditional clearance. ICICI will have to take the clearance from the Reserve Bank of India and the finance ministry," newspaper reports quoted an unnamed government official as saying.

It may be mentioned that in June, FIPB had refused approval for sale of a 5.9-per cent stake in ICICI Financial Services Ltd - the holding arm for insurance and asset management ventures - for $650 million.

Reports said Goldman Sachs and other foreign funds were interested in buying the stake.

ICICI Financial Services holds 74 per cent of both ICICI Prudential Life Insurance Co. and ICICI Lombard General Insurance Co.

It also owns 51 per cent of both ICICI Prudential Asset Management Co. and ICICI Prudential Trust Ltd.