ICICI Bank, one of India’s leading private sector lenders, has received approval from the Reserve Bank of India (RBI) to acquire up to an additional 2% stake in its subsidiary, ICICI Prudential Asset Management Company Ltd (ICICI Prudential AMC). The nod, granted via a letter dated September 12, is subject to compliance with applicable regulatory requirements.
Strengthening Majority Ownership
The additional investment will allow ICICI Bank to maintain and strengthen its majority ownership in ICICI Prudential AMC, a key player in India’s asset management industry. The move comes after the bank had earlier made disclosures on potential investments in the AMC on February 12, June 27, and July 9, 2025.
Regulatory Compliance Emphasized
ICICI Bank highlighted that the transaction will be carried out strictly in line with applicable regulatory norms, reaffirming its commitment to transparency and strong corporate governance practices.
Employees Stock Option Allotment
Separately, on the same day, ICICI Bank announced the allotment of 907,481 equity shares under its Employees Stock Option Scheme (ESOS)-2000. The shares, with a face value of ₹2 each, were allotted pursuant to the approval granted by two Executive Directors at 10:12 a.m., acting under authority delegated by the Board in its October 21, 2023 meeting.
Strategic Market Implications
Industry observers note that the RBI’s approval could further consolidate ICICI Bank’s presence in the mutual fund and asset management business, a sector witnessing rapid expansion in India. With the domestic asset management industry growing in scale and competitiveness, ICICI Bank’s higher stake in ICICI Prudential AMC is expected to provide the bank with enhanced strategic control and a stronger growth platform.
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