Shares of India's second-largest private sector lender ICICI Bank gained over 2% on Tuesday after the lender received exemption from paring stake in its insurance subsidiaries to 30% for a period of three years.
ICICI Bank on September 14 said that a government notification exempted the lender from the provisions of Section 19(2) of the Banking Regulation Act, 1949 with respect to shareholding above 30% in ICICI Lombard General Insurance Company and ICICI Prudential Life Insurance Company Limited, for a period of three years.
ICICI Bank shares touched an intraday high of Rs 372, rising 2.3% on BSE. ICICI Bank scrip closed at Rs 363 on BSE yesterday and also hit an intraday low of Rs 363.65, its opening price. The stock has gained after 2 days of consecutive fall. ICICI Bank shares have risen 2.77% in the last one month.
ICICI Bank stock price trades higher than 50 and 100-day moving averages but lower than 5, 20 and 200-day moving averages. The market-cap of the private lender stood at Rs 2.56 lakh crore as of today's closing session.
"As previously announced by ICICI Lombard General Insurance Company, it has proposed an acquisition of another general insurance business (Bharti AXA General), which if consummated would result in ICICI Bank's shareholding in ICICI Lombard General Insurance Company Limited reducing to less than 50%," ICICI Bank said in a press release.
The above exemption would facilitate compliance with the Banking Regulation Act, it said. The central government, on the recommendation of the Reserve Bank of India, issued the notification on September 9, 2020, ICICI Bank added.
"There are no current plans for the bank to divest to less than 50% shareholding in ICICI Prudential Life Insurance Company Limited. There would be no impact on the current distribution arrangements," it added.
ICICI Bank stock closed 2.14% higher at Rs 371.45 on BSE today.Share Market Highlights: Sensex ends 287 points higher, Nifty at 11,521; Axis Bank, Cipla, UPl top gainers