Wednesday, September 27, 2023

ICICI Bank Expands Stake in ICICI Lombard with RBI Approval

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  • ICICI Bank gains RBI approval to raise stake in ICICI Lombard by up to 4%.
  • Bank’s current 48.01% share in ICICI Lombard is set to increase in multiple tranches.
  • The approval marks a move towards unified teams following UBS’s emergency takeover of Credit Suisse.
  • Changes in senior ranks and dealmaking groups are expected, with some bankers taking bigger roles and others leaving.
  • ICICI Bank’s Q1 results show strong growth in standalone profit, net interest income, and core operating profit.


ICICI Bank has received the green light from the Reserve Bank of India (RBI) to increase its ownership in ICICI Lombard General Insurance Company by up to 4% in multiple tranches. The bank currently holds a 48.01% share in ICICI Lombard.

The second-largest private bank received the RBI nod on Friday, it said in a filing to the exchanges on Saturday.

Earlier, the bank, in its disclosure filed with the stock exchanges on May 28, 2023, had communicated that its Board of Directors had approved an increase in the shareholding in ICICI Lombard in multiple tranches by up to 4%.

You might also like to read: UBS Announces Bold Investment Banking Overhaul in the Wake of Credit Suisse Merger

ICICI Bank’s shares ended 0.54% higher on the BSE on Friday while ICICI Lombard rose 1.56%.

ICICI Bank for the June 2023 quarter reported a standalone profit after tax (PAT) recorded a growth of 39.7% year-on-year (YoY) to Rs 9,648 crore.

ET NOW poll had estimated PAT at Rs 9,300 crore.

Its net interest income (NII) increased by 38% YoY to Rs 18,227 crore in Q1 while the net interest margin (NIM) was 4.78% in Q1 compared to 4.01% in Q1 of FY23 and 4.90% in Q4 of FY23.

Provisions (excluding provision for tax) increased to Rs 1,292 crore during the quarter as compared to Rs 1,144 crore in Q1 of FY23.

The core operating profit grew by 35.2% YoY to Rs 13,887 crore in Q1 while fee income grew by 14.1% YoY to Rs 4,843 crore.

Meanwhile, ICICI Lombard reported a 12% year-on-year increase in net profit to Rs 390 crore for the first quarter ended June. The company had posted a net profit of Rs 349 crore in the year-ago period.

The company has clocked an operating profit of Rs 331 crore during the June quarter, up 4% from Rs 317 crore reported in the same quarter last year.

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Ethan Rivers
Ethan Rivers
Hi there! I'm Ethan Rivers, a financial enthusiast and the proud author behind the popular financial blog, "Roms Deals." With a passion for helping others achieve financial freedom, I've spent years diving deep into the intricacies of personal finance, investment strategies, and wealth management. Through my blog, I aim to demystify the world of finance and provide practical tips that anyone can apply to their financial journey. Having worked in the financial industry for over a decade, I've gained valuable insights and experience that I love sharing with my readers. From navigating the stock market to maximizing savings, I strive to equip individuals with the knowledge and tools they need to make informed financial decisions. Join me on this exciting journey towards financial empowerment and let's unlock the doors to a brighter financial future together. Welcome to "Roms Deals"!

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