People's Bank of China Buys Stake In ICICI Bank

The People's Bank of China has picked up 0.006 percent stake in ICICI Bank by investing Rs 15 crore in the private sector lender's Rs 15,000 crore qualified institutional placement (QIP) exercise which concluded last week. The Chinese central bank was among 357 institutional investors, including domestic mutual funds, insurance companies and global institutions, that subscribed to the issue

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The prominent investors were Government of Singapore, Morgan Investment and Societe Generale, according to regulatory filings.

Shares of ICICI Bank closed 2.5 percent higher at Rs 369.50 apiece.

While the PBOC's investment is modest, it has attracted attention amid tensions between India and China, after the Galwan valley clash.

In March, the Chinese central bank had increased its stake in HDFC Ltd to over 1 percent. However, in April, the government notified new norms for FDI (foreign direct 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.