JOIN USThe bank would take a call on the subject once the laws are amended to hike foreign direct investment in insurance sector from 26 per cent to 49 per cent, ICICI Bank CEO and Managing Director Chanda Kochhar told PTI.
This would help create value for the stake holders, she clarified while pointing out that ICICI Bank’s share price had increased three times in the last six months to about Rs 750 a share. At this price, ICICI’s market capitalisation is about Rs 80,000 crore compared to market leader SBI’s about Rs 1.20 lakh crore.
“In all these four (ICICI Prudential Life, ICICI Lombard, ICICI Securities and ICICI Home Finance) possibility exists, but nothing that we have finalised currently. So, there is nothing you would see immediately,” she said, when asked about the time frame she envisaged in terms of monetising investment in these entities.
At present, ICICI Bank holds 74 per cent stake in both life and non-life venture insurance companies.
“In terms of IPO... we should wait for how 26 to 49 pans out and then decide what percentage foreign partners will hold and so on. We will take a decision after that,” she elaborated, but made it clear that time and market was not opportune for an IPO in the life insurance or general insurance ventures.
Cautious on credit cards
ICICI Bank further said its cautious approach on credit card issuances would continue even if the economy revives completely.
“Cautious approach will be there and should be taken for the good of the industry even when the economy revives,” ICICI Bank Deputy Managing Director Sandeep Bakhshi told reporters on the sidelines of an HR Summit at International Management Institute here.