— FILE PHOTO

NEW ROADMAP: K. V. Kamath (right), CEO and MD, and Kalpana Morparia, Deputy Managing Director, of ICICI Bank.

MUMBAI: In a major banking restructuring, the board of directors of ICICI Bank at its meeting held at Jodhpur on March 3 approved the incorporation of a new wholly-owned subsidiary, ICICI Holdings, and the transfer of its investments in ICICI Prudential Life Insurance Company Limited (ICICI Life), ICICI Lombard General Insurance Company Limited (ICICI General), Prudential ICICI Asset Management Company Limited (ICICI AMC) and Prudential ICICI Trust Limited (ICICI Trust) to the new company.

ICICI Bank, now holds about 74 per cent of ICICI Life and ICICI General, and 51 per cent of ICICI AMC and ICICI Trust.

These investments would be transferred to ICICI Holdings at the book value in the books of ICICI Bank (now about Rs. 1,950 crore). ICICI Life and ICICI General are the largest private sector life insurance and general insurance companies in India.

"The growth momentum in the insurance sector is expected to continue given the growth of the Indian economy, rising household incomes and growing penetration of insurance products. This would lead to additional capital requirements for the insurance businesses. ICICI AMC manages the largest mutual fund in India, and is well-placed to capitalise on the growth opportunities in this space,'' a company release issued here said.

ICICI Holdings may consider a public listing of its equity shares at an appropriate time to meet a part of the further capital requirements of ICICI Life and ICICI General. ICICI Bank intends to retain majority ownership in ICICI Holdings. It is proposed that with effect from June 1, 2007, Kalpana Morparia, Joint Managing Director, ICICI Bank, would assume responsibility for ICICI Holdings as its Managing Director and CEO, subject to necessary approvals.

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