The Reserve Bank of India (RBI) has accorded its approval to SBI Funds Management Ltd (SBIFML/ SBI Mutual Fund) together with other group entities of the State Bank of India (SBI) group for acquiring up to 9.99 per cent of the paid-up equity capital of ICICI Bank.

As at December-end 2021, SBI Mutual Fund and the Life Insurance Corporation of India were among the single largest shareholders in ICICI Bank, with 5.72 per cent and 7.77 per cent stake, respectively.

RBI, in its letter, has advised SBIFML to ensure that the total shareholding of the SBI Group entities in the bank remains below 10 per cent of the paid-up equity capital of the bank at all times, ICICI Bank said in a regulatory filing.

RBI’s approval is valid for a period of one year — up to March 22, 2023, as per the filing.

Banking Regulation Act

The Central bank’s approval is subject to compliance with the relevant provisions of Banking Regulation Act, 1949, Master Direction on ‘Prior Approval for Acquisition of Shares or Voting Rights in Private Sector Banks’ dated November 19, 2015, and Master Direction on ‘Ownership in Private Sector Banks’ dated May 12, 2016, issued by RBI, provisions of the regulations issued by Securities and Exchange Board of India, provisions of the Foreign Exchange Management Act, 1999 and any other guidelines, regulations and statutes as applicable, ICICI Bank said.