ТАСС/TASS. India-based ICICI Bank is going to sell its Russian subsidiary, ICICI Bank Eurasia Limited Liability Company (IBEL), to Sovcombank, TACC/TASS reported quoting a press release of the Indian bank after a December 5 board meeting. The bank’s board of directors approved a proposal to sell an equity stake in IBEL to Sovcombank, which is not affiliated with Russia-based ICICI Bank, said the bank.
The deal, of which the Indian bank already gave the Bombay Stock Exchange (BSE) notice, is planned for closing within FY15.
The Russian office of ICICI Bank declined to comment on the issue, saying this is the authority of the bank’s head office in Delhi. It was not possible to get the head office’s latest comments on the deal’s parameters.
However, in its financial statement for the fiscal year ending September 30 ICICI Bank reflected its Russian subsidiary as an asset for sale.
According to the IFRS financial numbers, IBEL’s FY14 net profit totaled INR 140 mln (Rub 121 mln on the Bank of Russia’s exchange rate), or 58% below the year-ago indicator. The bank’s net profit was affected by devaluation of the Russian ruble and the need to pile up provisions, the bank noted in its financial statement.
ICICI Bank is a Top 4 bank in India, with operations in 19 countries. The bank has operated in Russia since 1998 and its charter capital equals Rub 1.59 bln.
