Peoples Bank of China among 357 investors to acquire stake in ICICI Bank

The investment comes at a time when business and trade relations between India and China have nose-dived

After the disclosure of a holding in HDFC, the Chinese central bank Peoples Bank of China has now acquired an equity stake in ICICI Bank.

The government had in April notified new norms for FDI investments by neighbouring countries which would require approvals. It is not clear if portfolio investments need to go through some vetting process or the government will continue with this open route till the time no FDI approval is required.

The investment by the Chinese central bank in ICICI Bank is modest. It subscribed to the recent ICICI Bank's Rs 15,000 crore capital qualified institutional investors (QIP) placement and invested Rs 15 crore.

The Chinese central bank was among the 357 institutional investors which included domestic mutual funds, insurance companies and global institutions that subscribed to the issue.

The investment comes at a time when business and trade relations between India and China have nose-dived after the Galwan valley clash between the soldiers.

Earlier, a disclosure by HDFC had caused a flutter after PBOC holding breached 1 per cent mark. HDFC had clarified that Chinese central bank, People's Bank of China (PBOC) has been an existing shareholder of the company and only the disclosure was being made as they hit the 1 per cent threshold.

HDFC's Vice Chairman and CEO Keki Mistry had told IANS that the PBOC had been an existing shareholder and had owned 0.8 percent in the company as of March 2019.

Thereafter, there have been reports that PBOC has cut its stake in HDFC.



Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel