Mumbai: Insurance Regulatory Irdai had allowed ICICI Bank to drop its stake in ICICI Lombard General Insurance to 30%.
Private Bank currently holds just below 52% in non-life company.
Approval to reduce the supply of promoters submitted to the Bank, while approving the demerger scheme of Bharti Axa General Insurance business, which was acquired by ICICI Lombard last year via a scheme of arrangement.
This scheme will result in general insurance Bharati Axa merger with ICICI Lombard.
Last year, ICICI Lombard has signed an agreement to buy Bharti Axa, as part of which the Bharti Axa shareholders will receive two shares of ICICI Lombard for every 115 shares held by them.
Last month, a senior finance ministry official said that the Indian insurance industry is moving from being a promoter that led to the market, led the market with capital market became the dominant source of capital for the company.
RBI has also asked lenders to drop their shares in the insurance company below 50%.
In May 2021, HDFC sold over 44 lakh shares in HDFC Ergo to reduce the stake below 50% and comply with RBI norms.
Approved the reduction is at stake, Settings and Development Authority of India Insurance (Irdai) said that private insurers must ensure that the solvency margin ratio should remain above the level of control at any moment.
ICICI Bank is also required to invest to meet business growth or solvency in proportion to the ownership of shares after the merger.
Icici Bank Gets Irdai’s Nod to Cut Stocks in Non-Soul Arms Up to 30%
