ICICI Group to acquire up to 9.95% in Equitas SFB

Equitas Small Finance Bank has received RBI approval for ICICI Prudential Asset Management and ICICI Bank group entities to acquire up to 9.95% stake. The nod is valid for one year and subject to multiple regulatory compliances.

Equitas Small Finance Bank (SFB) has secured approval from the Reserve Bank of India (RBI) for ICICI Prudential Asset Management Company Limited and other ICICI Bank group entities to acquire an aggregate holding of up to 9.95% in the bank.

The approval, communicated on February 10, 2026, enables the entities to purchase shares or voting rights within a structured aggregate holding framework.

Key Approval Details

Parameter Details

Acquiring Entity ICICI Prudential Asset Management Company Ltd

Group Participants ICICI Bank Limited group entities

Maximum Permitted Stake Up to 9.95%

Approval Date February 10, 2026

Validity One year from approval date

Regulatory Conditions

The approval is subject to strict compliance with multiple legal and regulatory frameworks governing banking and financial investments, including:

Banking Regulation Act, 1949

RBI Directions on Acquisition and Holding of Shares (2025)

Foreign Exchange Management Act (FEMA), 1999

SEBI regulations

Other applicable laws and guidelines

The acquiring entities must adhere to these requirements throughout the transaction process.

Transaction Timeline

The RBI clearance remains valid for one year, providing a defined window to complete the stake acquisition while maintaining regulatory compliance.

Sector Significance

The move marks a notable institutional investment in the small finance banking sector, enabling ICICI group entities to establish a minority holding in Equitas SFB under RBI’s regulatory oversight.