The board of ICICI Bank has decided to raise the bank’s stake in ICICI Lombard General Insurance Company (ILGIC) by an additional 4 per cent and turn the insurance company into a subsidiary of the bank.

The bank, in a regulatory filing, said that it will acquire at least 2.5 per cent stake out of the 4 per cent before September 9, 2024. As on March 31, 2023, the bank held 48.02 per cent stake in the ILGIC.

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In March 2023, the bank had informed the exchanges about an extension in timeline granted by the RBI for divesting its shareholding in ILGIC to less than 30 per cent of the company’s paid up capital till September 9, 2024.

“The Board of Directors approved an increase in shareholding in the permissible under applicable law, to ensure compliance with the 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.