RBI To Let Temasek, GIC Up Stakes In ICICI

The Reserve Bank of India will allow Singapore state investor Temasek Holdings and the Government of Singapore Investment Corp. (GIC) raise their stakes in ICICI Bank to 10 percent each. Temasek holds 7.41 percent equity in ICICI Bank, India''s largest private bank, and GIC holds 2.29 percent. Last year the central bank said the GIC and Temasek could not raise their stakes in ICICI beyond a combined 10 percent, the limit for foreign portfolio investors, as it did not regard the state investment vehicles as separate entities. It said that the Reserve Bank of India had agreed to make an exception in the case of ICICI Bank as the arrangement was a part of India''s obligations under the Comprehensive Economic Cooperation Agreement with Singapore.