ICICI Bank to sell Federal, SIB stakes in 3 years

ICICI Bank has decided to dilute its stake in Federal Bank and South Indian Bank in the next three years as per the Reserve Bank of India’s draft regulations.

ICICI Bank Managing Director and Chief Executive K V Kamath said Federal Bank and SIB stakes are just investments and “we have written to Reserve Bank of India (RBI) about our intention to dilute our stake in them in the next three years”.

The stake in both banks would be brought down through market operations, he added. ICICI Bank holds about 20 per cent stake in Federal Bank and over 10 per cent in South Indian Bank. ICICI Bank had earlier ruled out a merger with Federal Bank or SIB.