Chinese bank invests Rs 15 cr in ICICI Bank via QIP

The People's Bank of China has picked up a 0.006 per cent stake in ICICI Bank by investing Rs 15 crore in the private sector lender's Rs 15,000 crore qualified institutional placement (QIP) exercise which concluded last week.

Investment banking sources said the Chinese bank was among 357 institutional investors -- including domestic mutual funds, insurance companies and global institutions -- that subscribed to the issue.

The prominent investors were Government of Singapore, Morgan Investment and Societe Generale, according to regulatory filings.

In March, the Chinese bank increased its stake in home loan lender HDFC Ltd to over 1 per cent, creating a flutter in the Indian market.

The move prompted the government to tighten foreign portfolio investment rules, especially on investments coming from neighbouring countries with a Chinese connection, citing 'opportunistic takeovers'.

Relations between India and China have worsened since the Galwan valley border clash. India has already banned 59 Chinese apps including TikTok and WeChat. Besides, the government is monitoring Chinese investment inflow closely.

Photograph: Shailesh Andrade / Reuters.