ICICI Bank cancels plans for new subsidiary
02 Feb 2008
Mumbai: ICICI Bank has terminated plans to divest stake and spin off its holding company as its insurance and mutual fund business, for failure to get the Reserve Bank's approval for such a company.
ICICI Banks had proposed to transfer its equity shareholding in ICICI Prudential Life Insurance Company Ltd, ICICI Lombard General Insurance Company Ltd, ICICI Prudential Asset Management Company Ltd, and ICICI Prudential Trust Ltd to the new subsidiary.
The proposed transfer of ICICI Bank's equity, however, was subject to the receipt of regulatory and other approvals, including that of the Reserve Bank of India, the Insurance Regulatory and Development Authority and the Foreign Investment Promotion Board.
ICICI Bank had received approval from the Foreign Investment Promotion Board and the Insurance Regulatory and Development Authority for the proposed holding company - ICICI Financial Services. But since RBI has not given its approval, ICICI Bank today announced cancellation of offer to sell a stake in the proposed company.
"ICICI Bank had received definitive offers from investors for subscription to equity shares of the proposed new subsidiary... The arrangement was subject to regulatory approvals from RBI, IRDA and FIPB... As the agreed date has elapsed and this requirement has not been satisfied, the arrangement with respect to the offers stands terminated," the bank said in a filing with BSE.
