Upon completion of the transaction, ICICI Bank will hold about 64 percent in ICICI Lombard General Insurance Company Ltd, while Fairfax have 35 percent.

The bank said in a statement that its board has approved the sale of 9 percent shareholding in ICICI Lombard to its joint venture partner, Fairfax Financial Holdings Limited.

Earlier, foreign partners were only allowed to hold 26 percent stake in an insurance venture which has now been increased to 49 percent after the passage of the Insurance Laws (Amendment) Act earlier this year.

The proposed transaction values the company at Rs 17,225 crore, it said. The transaction reflects the company's franchise as the leading private sector general insurer in India, the substantial potential for profitable growth of the business and the strong relationship between the joint venture partners, it added. The transaction is subject to governmental and regulatory approvals.

Latest News  from Business News Desk