ICICI Bank Sells 1.5% Stake In ICICI Prudential Life Insurance
Money & Banking
Private sector lender ICICI Bank has sold a 1.5 per cent stake in its life insurance arm, ICICI Prudential Life Insurance, for ₹840 crore.
“The bank has today divested 21,500,000 equity shares of face value of ₹10 each of ICICI Prudential Life Insurance Company Limited, representing 1.50 per cent of its equity share capital at March 31, 2020, on the stock exchange for an approximate total consideration of ₹8.40 billion,” it said in a regulatory filing on Monday.
Following this, the bank’s shareholding in ICICI Prudential Life Insurance stands at about 51.4 per cent.
“While announcing its results for the quarter ended March 31, 2020, on May 9, ICICI Bank had stated that the bank would look at further strengthening the balance sheet as opportunities arise,” the lender said in the regulatory filing.
This comes after the private sector lender sold off 3.96 per cent stake in its general insurance arm ICICI Lombard General Insurance for ₹2,250 crore.
With these two stake sales, the bank has now raised ₹3,090 crore.
ICICI Bank had a capital adequacy ratio of 16.11 per cent as on March 31. However, with the economic uncertainty arising out of the Covid-19-led crisis, most banks have been strengthening their balance sheets by increasing their capital buffer.
The lender’s scrip closed at a gain of 1.07 per cent at ₹367.80 apiece on the BSE on Monday.
Published on
June 22, 2020
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Private sector lender ICICI Bank has sold a 1.5 per cent stake in its life insurance arm, ICICI Prudential Life Insurance, for ₹840 crore.
“The bank has today divested 21,500,000 equity shares of face value of ₹10 each of ICICI Prudential Life Insurance Company Limited, representing 1.50 per cent of its equity share capital at March 31, 2020, on the stock exchange for an approximate total consideration of ₹8.40 billion,” it said in a regulatory filing on Monday.
Following this, the bank’s shareholding in ICICI Prudential Life Insurance stands at about 51.4 per cent.
“While announcing its results for the quarter ended March 31, 2020, on May 9, ICICI Bank had stated that the bank would look at further strengthening the balance sheet as opportunities arise,” the lender said in the regulatory filing.
This comes after the private sector lender sold off 3.96 per cent stake in its general insurance arm ICICI Lombard General Insurance for ₹2,250 crore.
With these two stake sales, the bank has now raised ₹3,090 crore.
ICICI Bank had a capital adequacy ratio of 16.11 per cent as on March 31. However, with the economic uncertainty arising out of the Covid-19-led crisis, most banks have been strengthening their balance sheets by increasing their capital buffer.
The lender’s scrip closed at a gain of 1.07 per cent at ₹367.80 apiece on the BSE on Monday.
Published on
A letter from the Editor
Dear Readers,
The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.
Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.
In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.
We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.
But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.
I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.
A little help from you can make a huge difference to the cause of quality journalism!
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