As per the Banking Regulation Act 1949, 19(2) ‘no banking company shall hold shares in any company, whether as pledgee, mortgagee or absolute owner, of an amount exceeding thirty per cent.’
On 14th September ICICI Bank announced that as per government provisions it has been exempt from the regulations of the aforementioned act.
This resulted in a 2% rise in the ICICI Bank stock in the 15the of September.
The company released a statement saying, “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%.”