On 28 May 2023, Sunday, the ICICI Bank board of directors has approved the decision to increase its stake in ICICI Lombard General Insurance Company (ICICI Lombard). The stake increase will be up to 4% in multiple tranches, as permissible under applicable law, to ensure compliance with the Section 19(2) of the Banking Regulation Act, 1949.

According to current RBI guidelines, banks can hold either less than 30% or more than 50% in insurance ventures.

ICICI Bank already owns 48.02% of the insurance arm and plans to acquire at least 2.5% of the 4% by September 9, 2024, making ICIC Lombard its subsidiary. Bank's decision to increase its stake in the insurance business was followed after the RBI approved HDFC Bank to increase its stake in its insurance arm before the merger. However, ICICI Bank will require RBI approval for the same.

The stock of ICCI Lombard spiked 14% and touched the day’s high of Rs. 1,255 during trading hours. ICICI bank stock touched day’s high in early half to Rs. 957 but traded near red in the last leg of the session.