The board of ICICI Bank on Saturday approved the acquisition of a 100 per cent stake in ICICI Prudential Pension Funds Management (ICICI PFM) from its life insurance arm ICICI Prudential Life Insurance for a consideration of ₹203.5 crore.
“With ICICI PFM becoming a 100 per cent subsidiary of the bank, it is expected that both entities would be able to better capitalise on the synergies in line with the customer 360 focus of the bank,” the private sector lender said in a statement to the stock exchanges, adding that the bank will have greater resources including capital to support the pension fund business.
The acquisition is subject to approvals, including that of the RBI and PFRDA.
ICICI PFM is entirely owned by ICICI Prudential wLife Insurance. In the life insurance company, promoters ICICI Bank holds 51.03 per cent stake and Prudential 21.97 per cent.
The pension fund company is currently a registered fund manager under the National Pension Scheme (NPS) with total assets of ₹49,815 crore as of June 30, as per disclosure from ICICI Prudential Life Insurance.
Profit growth
ICICI Bank reported a 15.5 per cent rise in net profit to ₹12,768 crore during Q1FY26 from ₹11,059 crore in Q1FY25.
Net interest income increased by 10.6 per cent year-on-year to ₹21,635 crore in Q1FY26 from ₹19,553 crore in Q1FY25. Net interest margin (NIM) was 4.34 per cent in Q1FY26 compared to 4.41 per cent in Q4FY25 and 4.36 per cent in Q1FY25.
“NIM is one of the levers that we have, and we will focus on maximising risk-calibrated profit by using various levers,” said Sandeep Batra, executive director, ICICI Bank.
Gross NPA of the bank was 1.67 per cent as of June 30, 2025, compared to 2.15 per cent in the year-ago period.
Provisions (excluding provision for tax) were ₹1,815 crore in Q1FY26 compared to ₹1,332 crore in Q1FY25.
Within advances, the bank said that its retail loan portfolio grew by 6.9 per cent year-on-year and 0.5 per cent sequentially and comprised 52.2 per cent of the total loan portfolio as of June 30, 2025.