ICICI Bank to divert assets into JV

ICICI enters a US$80 million joint venture deal with First Data.

According to a report in Money Control, ICICI Bank, India's largest private sector bank, has finalised its point of sale (PoS) terminals. It will sell its PoS assets to First Data Corporation for US$80 million.

The assets will be hived-off into a joint venture with First Data where the latter will hold 81 percent stake while ICICI Bank will hold 19 percent. The bank will pay US$15–16 million for the 19 percent stake in the joint venture.

ICICI Bank has sought the approval of the Reserve Bank of India (RBI) for investment into the PoS joint venture. Thus far, ICICI Bank has invested between US$30–35 million in PoS assets. The bank will also have to pay the PoS joint venture fee for the transactions that will be undertaken.