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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.
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