RBI allows SBIFML, other group entities to raise ICICI Bank stake upto 9.99% 

Private lender ICICI Bank said that the Reserve Bank of India (RBI) has accorded approval to the SBI Funds Management Limited (SBIFML) and other entities of the SBI Group entities for increasing their stake up to 9.99 per cent of the paid-up equity capital of ICICI Bank Limited. This approval will remain valid for a period of one year, i.e., till March 22, 2023.

The private lender got notified of the development via an RBI letter dated March 23, according to an exchange filing.

“This is to inform you that the Bank has today received a copy of RBI letter dated March 23, 2022 addressed to SBIFML that it has accorded its approval to SBIFML together with all other group entities of SBI Group for acquiring upto 9.99 per cent of the paid-up equity capital of the Bank,” the filing read.

The letter by RBI advised SBIFML to ensure total shareholding of the SBI Group entities in the ICICI Bank remains below 10 per cent of the paid-up equity of the capital at all times.

It further mentioned that this approval is in keeping with the provisions of Banking Regulation Act, 1949; Master Direction on ‘Prior Approval for Acquisition of Shares or Voting Rights in Private Sector Banks’ dated May 12, 2016 issued by RBI; provisions of the regulations issued by Sebi; provisions of the Foreign Exchange Management Act, 1999 and any other guidelines, regulations and statutes as applicable.