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Mumbai: The second largest Indian bank, the private sector ICICI Bank, will set up a holding company, ICICI holdings, for its insurance and mutual fund businesses. This was decided by the bank's board at its three-day meeting in Jodhpur that ended today. Accordingly, all the investments of ICICI Bank in ICICI Prudential Life, ICICI Lombard General Insurance, ICICI AMC and Prudential ICICI Trust will be transferred to the new company. The bank says ICICI Holdings will be a wholly owned subsidiary of the bank and would be incorporated on 1 June. Kalpana Morparia, joint MD of ICICI Bank, will head ICICI holdings as its managing director and CEO. ICICI Bank currently holds approximately 74 per cent in ICICI Life and ICICI General. The bank has also 51 per cent stake in ICICI AMC and ICICI Trust. ICICI Bank currently holds approximately 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 (currently about Rs 1,950 crore), the release said. ICICI Holdings may seek a public listing to raise finance to meet a part of the future capital requirements of ICICI Life and ICICI General. ICICI Bank will retain majority stake in the new company, which will ICICI Bank had total assets of about Rs251,389 crore ($56.3 billion) at 31 March, 2006, and profit after tax of Rs2,540 crore ($569 million) for the year ended March 31, 2006.
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