New Delhi: For its insurance and mutual fund businesses, leading private sector bank ICICI has decided to set up a wholly-owned holding company – ICICI Holdings.
ICICI Bank will transfer all investments in ICICI Prudential Life Insurance, ICICI Lombard General Insurance, ICICI Asset Management Company and ICICI Trust Ltd to ICICI Holdings, the new company.
The decision was taken by the Bank's Board of Directors that met in Jodhpur.
The new company would be incorporated by June 1, subject to necessary approvals.
ICICI may list the new venture on the bourses next fiscal to fund capital needs.
"We have received board approval and would now obtain the approvals of Reserve Bank and Insurance Regulatory Development Authority to transfer the investments in the four companies to ICICI Holdings," as quoted by PTI, ICICI Bank joint managing director Kalpana Morparia, who will head the new firm, told reporters in Mumbai.
The new entity may also consider public listing of its equity shares in future to meet a part of its future capital requirements of ICICI Life and ICICI General.
ICICI Bank, which currently holds approximately 74 per cent in ICICI Life and ICICI General, will retain majority stake in the new company.
The bank has also 51 per cent stake in ICICI AMC and ICICI Trust. These investments would be transferred to ICICI Holdings at the book value in the books of ICICI Bank (currently about Rs 1,950 crore).
"We are planning to bring an IPO between April and December 2007 as both our general and life insurance companies need more capital for growth. There is also a limit to the investments the bank can make into parabanking," she said.
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