Mumbai, Mar 5 (UNI) ICICI Bank today informed the BSE that their Board of Directors have approved the incorporation of a new wholly-owned subsidiary, ICICI Holdings.

The bank intends to transfer its investments in ICICI Prudential Life Insurance Company Ltd (ICICI Life), ICICI Lombard General Insurance Company Ltd (ICICI General), Prudential ICICI Asset Management Company Ltd (ICICI AMC) and Prudential ICICI Trust Ltd (ICICI Trust) to the new Company.

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 now be transferred to ICICI Holdings.

''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 Bank Joint Managing Director Ms Kalpana Morparia said.

ICICI AMC manages the largest mutual fund in India and is well-placed to capitalise on the growth opportunities in this space.

ICICI Holdings may also 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. The Bank intends to retain majority ownership in ICICI Holdings, subject to necessary approvals, she added.

UNI