Indian financial services provider ICICI Bank has failed to receive government approval for its plan to sell 5.9% of its stake in its subsidiary ICICI Financial Service.
ICICI Bank has not yet got any official clearance from the Foreign Investment Promotion board. We are given to understand that the application has not been approved, the bank said in a statement.
A press release, which cited industry sources, revealed that the bank aimed to raise approximately $650 million from the sale of its stake in its wholly-owned subsidiary in the insurance and asset management sector, ICICI Financial Service.
ICICI holds a 74% stake in both ICICI Prudential Life Insurance and ICICI Lombard General Insurance. In addition, the bank has a 51% shareholding in both ICICI Prudential Asset Management and ICICI Prudential Trust.