ICICI Bank to sell Rs1,950 crore stake in life insurance arm
- Private sector lender ICICI Bank Ltd on Monday said that its board of directors has approved the sale of 6% stake in its life insurance joint venture ICICI Prudential Life Insurance.
- Of this, 4% stake will be sold to PremjiInvest and its affiliates. The remaining 2% stake will go to Compassvale Investments Pte Ltd, a wholly-owned subsidiary of Singapore-based investment company Temasek Holdings, the bank said in a notification to stock exchanges.
- “The proposed transaction values the company at Rs.32,500 crore,” ICICI Bank said. This pegs the value of the deal atRs.1,950 crore.
- Upon completion of the transaction, ICICI Bank will hold approximately 68% share of the company, while Prudential Plc, ICICI Bank’s partner in the life insurance business, will maintain its current share of approximately 26%
Bank fraud doubles in one year
- In May 2015, the Reserve Bank of India (RBI) set up a Central Fraud Registry to check growing bank fraud. After this, the Prime Minister’s Office called a meeting to review the fraud-detection system, a clear indication that the government was worried.
- It was more than just a bunch of bounced cheques.
- The media reported the move, but largely laid the blame on the rise in bank non-performing assets (NPA), loans in danger of default.
- Now, data obtained by OnlineRTI.com, a Bangalore-based startup helping citizens file queries under the Right-to-Information (RTI) Act, via the RTI reveals that NPAs are not entirely to blame.
- NPAs did rise 23% between 2013-14 and 2014-15, threatening India’s banking system, but it is also true that in the year since Narendra Modi’s government took charge, there has been a 100% increase in bank fraud (as per RBI data).
- Indeed, this is why the RBI set up the fraud registry and why the PMO reviewed the fraud-detection system.
Vishakha Mulye appointed as ICICI Bank ED
- Vishakha Mulye is the new executive director at ICICI Bank. She will continue to hold her existing position of managing director and chief executive officer of ICICI Venture for the time being until a successor has been found.
- ICICI Bank in a statement said she would be appointed subject to necessary approvals.
- A long-time employee with ICICI Bank, she was group chief financial officer (CFO) at ICICI Bank from 2005 to 2007, before moving as executive director to ICICI Lombard, the group’s general insurance venture.
- In April 2009, she was appointed MD & CEO of ICICI Venture Funds Management Company.
- Mulye joined the ICICI Group in 1993 and headed the team that planned and executed the merger of ICICI and ICICI Bank in 2002
- From 2002 to 2005, she was responsible for the bank’s structured finance and global markets businesses, and its financial institutions relationships.
- She is credited with being a key driver and enabler of the debt securitisation market in India, and with building the bank’s global markets business.
Kelkar Committee on PPP model to submit report soon
- The committee chaired by Kelkar to look into the ways to revive Public Private Partnership (PPP) model is expected to submit its
report to the Union Finance Minister Arun Jaitely in a week or two, said S B Nayar, chairman and managing director, India Infrastructure Finance Company Ltd (IIFCL), who is a member in the committee.
- The panel, headed by former finance secretary Vijay Kelkar, has been constituted earlier this year to look into and suggest reforms for the public-private partnership (PPP) model in infrastructure projects.
- Delivering a speech in the United Economic Forum (UEF) Trade Summit 2015 in Chennai, he said, “We are now submitting the report next week to the Finance Minister, where we have suggested very drastic changes in the land acquisition and agreement model including arbitration procedure.”
- Senior diplomat and former high-profile spokesperson of the External Affairs Ministry Syed Akbaruddin has been appointed as India’s Permanent Representative to the United Nations, succeeding Asoke Mukerji.
- A 1985 batch IFS officer, Mr. Akbaruddin, currently serving as an Additional Secretary in MEA, is credited with bringing a whiff of fresh air into the Ministry’s External Publicity division during his three-and-half year tenure as the spokesperson.
- He had also brought an effective mix of social and digital media into the External Publicity division.
- As India’s Permanent Representative to the global body in New York, Mr. Akbaruddin’s main task would be to push for India’s bid to gain permanent membership of the UN Security Council as well as to strongly advocate its position on key issues.