India’s largest private sector lender ICICI Bank, has raised Rs 2,250 crore by divesting 3.96% stake in ICICI Lombard General Insurance Company. The move will help the lender to strengthen its balance sheet.
Following this, the bank’s shareholding in the insurer stands at approximately 51.9%.
ICICI Lombard GIC is the largeest private sector general insurance company in India with a gross written premium of Rs 14,789 crore for the year ended March 31, 2019. The company issued over 26.5 million policies and settled over 1.6 million claims as on March 31, 2019.
ICICI Bank, on May 9, while announcing its results for the quarter ended March 2020 had stated that it would look at further strengthening the balance sheet as opportunities arise.
The private sector lender posted a 26.03% on-year (YoY) rise in standalone profit at Rs 1,221.36 crore for the quarter ended March 31. The profit figure stood at Rs 969.06 crore for the same period last year.
Net interest income rose 17% YoY to Rs 8,927 crore in Q4FY20 from Rs 7,620 crore in the corresponding quarter last year. Net interest margin stood at 3.87% against 3.72% posted in the year-ago quarter.
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