ICICI Bank gets RBI nod to increase up to 4% stake in subsidiary ICICI Lombard

economictimes.indiatimes.com:

ICICI Bank received approval from the Reserve Bank of India (RBI) to raise its stake in ICICI Lombard General Insurance Company by up to 4% in multiple tranches. The private lender currently holds a 48.01% share in ICICI Lombard. The second-largest private bank received the RBI nod on Friday, it said in a filing to the exchanges on Saturday.

Earlier, the bank, in its disclosure filed with the stock exchanges on May 28, 2023, had communicated that its Board of Directors had approved an increase in the shareholding in ICICI Lombard in multiple tranches by up to 4%. ICICI Bank's shares ended 0.54% higher on the BSE on Friday while ICICI Lombard rose 1.56%. ICICI Bank for the June 2023 quarter reported a standalone profit after tax (PAT) recorded a growth of 39.7% year-on-year (YoY) to Rs 9,648 crore.

ET NOW poll had estimated PAT at Rs 9,300 crore. Its net interest income (NII) increased by 38% YoY to Rs 18,227 crore in Q1 while the net interest margin (NIM) was 4.78% in Q1 compared to 4.01% in Q1 of FY23 and 4.90% in Q4 of FY23. Provisions (excluding provision for tax) increased to Rs 1,292 crore during the quarter as compared to Rs 1,144 crore in Q1 of FY23.

The core operating profit grew by 35.2% YoY to Rs 13,887 crore in Q1 while fee income grew by 14.1% YoY to Rs 4,843 crore. Meanwhile, ICICI Lombard reported a 12% year-on-year increase in net profit to Rs 390 crore for the first quarter ended June. The company had posted a net profit of Rs 349 crore in the year-ago period.