Even as ICICI Bank is getting ready to launch initial public offerings for its insurance and asset management subsidiaries, the bank?s earlier agreement with overseas investors seeking investment in its proposed holding company, under which insurance and asset management companies would have operated, has lapsed.
ICICI Bank, at its meeting held on March 1-3, 2007, had received definitive offers from investors for picking up 5.9% stake in the proposed new subsidiary, and had entered into definitive agreements with overseas investors for this purpose.
The arrangement was subject to the receipt of regulatory and other approvals, including that of the Reserve Bank of India (RBI), the Insurance Regulatory and Development Authority and the Foreign Investment Promotion Board, and was to terminate, failing the receipt of all such approvals within a mutually agreed date. As the agreed date has elapsed and this requirement has not been satisfied, the arrangement with respect to the offers stands terminated, said an ICICI Bank release.
ICICI Bank has not been able to set up the proposed subsidiary, as it is yet to receive approval from the RBI. The banking regulator had extended its deadline to finalise the issue on whether domestic banks would be allowed to establishing such a holding company.