Alpha Ideas

(Disclosure:I am market making in the shares of ICICI Pru)

Top private sector lender ICICI Bank will consider listing its two insurance units to unlock value at an opportune time when it feels that valuations are optimum, the bank’s chief Chanda Kochhar has said.

We will take this step when we feel that the valuations are really optimum. We can mainly look at two insurance companies — life and general insurance units,” Kochhar said.

While making it clear that there were no immediate plans for listing of any of its subsidiaries, she said, “Clearly, at some point of time we will look at some amount of unlocking of value, more so from the point of view that it establishes a benchmark and it is always good to have a benchmark.

“But the thing is that we do not really need capital, whether it is in the bank or in the insurance company,” Kochhar said.

In ICICI Bank’s latest annual report, Kochhar had said that the bank’s subsidiaries achieved healthy performance in fiscal 2014.

“Our life insurance subsidiary sustained its profitability and maintained its position as the largest private sector life insurer in the country. Our general insurance subsidiary saw strong improvement in profitability in fiscal 2014 while maintaining its market leadership position among private players.” – from ET