LI Network
Published on: November 11, 2023 at 00:20 IST
The Reserve Bank of India (RBI) has given its approval for ICICI Bank to acquire complete ownership of ICICI Securities, as announced by ICICI Bank on Thursday.
This decision comes after ICICI Bank had initially approved a proposal on June 29 to delist ICICI Securities, paving the way for the latter to become a wholly-owned subsidiary of the bank.
The regulatory filing by ICICI Bank disclosed that the RBI’s approval is contingent upon specific conditions, and the bank is currently awaiting other necessary statutory and regulatory clearances as mandated by applicable laws.
ICICI Securities, a prominent player in the financial landscape, is promoted by ICICI Bank and holds a distinguished position as the country’s leading retail-led equity franchise. In addition to being a significant distributor of financial products, it also operates as a key player in the investment banking sector.
This strategic move aligns with ICICI Bank’s broader corporate strategy and reflects its commitment to strengthening its foothold in the financial services sector.
The acquisition of full ownership of ICICI Securities positions the bank to wield greater control and integration within its financial ecosystem, fostering synergies that can contribute to its overall growth and market influence.
As the process advances, the attention now turns to the awaited statutory and regulatory approvals, which will be crucial for the seamless execution of this significant development in the financial sector.
The successful completion of this transaction is poised to reshape the landscape of ICICI Bank’s business structure, further solidifying its position as a key player in the Indian financial market.