The country’s largest private sector lender, ICICI Bank, at a meeting of its board of directors on Friday decided to sell its stake in ICICI Bank Eurasia (IBEL).
Russia’s Sovcombank is expected to buy the stake in IBEL, which is a non-material wholly-owned banking subsidiary of ICICI Bank.
“The sale is subject to execution of definitive agreements and regulatory approvals. The purchase price will be determined on the transaction completion date based on the financial statements of IBEL at that date. The transaction is expected to conclude by the end of the financial year”, said ICICI Bank in a statement to the BSE.
At the end of the second quarter of the current fiscal, IBEL had total assets of RUB 4.5 billion and paid-up equity capital of RUB 1.6 billion.
IBEL’s profit after tax in the six months ended September 30, 2014, was RUB 28 million, the bank said.
The statement also noted that IBEL accounted for less than 0.1% of ICICI Bank’s consolidated total assets and consolidated profit after tax for the period.
IBEL provides corporate and retail banking products and services in Russia. The ICICI Bank scrip closed at R359.45 on the BSE on Friday, down 66.