The board of country’s largest private sector lender ICICI Bank on Friday approved sale of the bank’s shareholding in its Russian subsidiary ICICI Bank Eurasia, to a third party Sovcombank.

“ICICI Bank Ltd has informed BSE that the Board of Directors of the Bank at its meeting held on December 05, 2014, approved a proposal for the sale of ICICI Bank’s shareholding in ICICI Bank Eurasia Limited Liability Company (IBEL), a non-material wholly-owned banking subsidiary in Russia, to Sovcombank, an unrelated third party Russian bank,” ICICI Bank said in a release to the Bombay Stock Exchange.

At September 30, 2014, ICICI Bank Eurasia had total assets of Russian Ruble (RUB) 4.5 billion (about Rs 500 crore) and paid-up equity capital of RUB 1.6 billion (about Rs 185 crore). Its profit after tax in the six months ended September 30, 2014 was RUB 28 million (Rs 3.2 crore).

ICICI Bank Eurasia accounted for less than 0.1 per cent of ICICI Bank’s consolidated total assets at that date and consolidated profit after tax for the period, the BSE release said.

The sale is subject to execution of definitive agreements and regulatory approvals. The purchase price will be determined on the transaction completion date based on the financial statements of IBEL at that date. The transaction is expected to conclude by the end of the financial year.

Shares of ICICI bank ended at Rs 359.45 per share, weaker by Rs 2.40 (0.66 per cent) over the previous close on BSE.

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