The Hindu : Kerala News : ICICI Bank denies takeover move

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Saturday, Sep 18, 2004

Kerala

Kerala

ICICI Bank denies takeover move

By Our Staff Reporter

KOCHI, SEPT. 17. The ICICI Bank has clarified that the bank has no intention to acquire the Federal Bank in which it currently holds a 20.4 per cent stake.

A press release issued by the ICICI Bank here today said the shareholding was acquired through the ICICI Bank's support to the Federal Bank in its capital raising from 1993 onwards.

The press release pointed out that the Reserve Bank of India's circular dated July 6, 2004 requires banks holding more than 5 per cent stake in another bank to submit a definite roadmap for reduction of the holding to 5 per cent. In line with the same, the ICICI Bank has already informed the RBI in July 2004 of its intention to reduce its shareholding in the Federal Bank to 5 per cent within a definite timeframe.

In view of the above, the reports on the ICICI Bank seeking to acquire control of the Federal Bank have no basis, the statement said.

Meanwhile, the Federal Bank Shareholders' Association has decided to convene a meeting of shareholders at the Federal Bank Officers' Association hall, Aluva, on September 18 according to a press release issued by B.M. Paul, convener of the Association. The statement alleged that the ICICI Bank was trying to take control of the Federal Bank through covert moves and that it would affect the State in general and the shareholders in particular. The meeting will discuss methods to counter the alleged move.

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