ICICI Bank sells its stake in South Indian Bank

Mumbai, Mar 22 (UNI) ICICI Bank today sold its entire 6.5 per cent stake in Kerala-based private bank, South Indian Bank (SIB), for Rs 30.3 crore.

ICICI Bank's shareholding in SIB had fallen to 6.5 per cent from 11.14 per cent on December 31, 2005 following a rights issue in January.

ICICI Bank has been paring its stakes in SIB and another Kerala-based Federal Bank in compliance of the Reserve Bank of India's guidelines which do not allow a bank to hold more than 5 per cent stake in another bank. These stakes were acquired before the guidelines came into force.

Last week, ICICI Bank sold its 3 per cent stake in Federal Bank for Rs 48.10 crore to International Finance Corporation (IFC), bringing down its stake to 6.2 per cent. IFC is the private financing arm of the World Bank.

The sale will boost the ICICI bank's earnings in the fourth quarter ending March 31, and provide it a comfortable liquidity.

Meanwhile, the Reserve Bank of India has notified that Foreign Institutional Investors (FIIs) and Non-Resident Indians (NRI) or Persons of Indian Origins (PIOs) can now purchase under Portfolio Investment Scheme (PIS) equity shares and convertible debentures of The Federal Bank through primary markets and stock exchanges in India upto 49 per cent limits of its paid-up capital, as the company has passed resolutions to this effect at its Board of Directors' and General Body Meetings.

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