New Delhi: A big news has surfaced in the country between the Chinese cargo boycott and the anti-China environment. People's Bank of China, the state-run bank of China, has bought a stake in the Indian bank ICICI. However, experts say that there is no threat to the national interest. In March last year, China's central bank increased its investment in HDFC to more than 1% then there was a lot of ruckus on it.
People's Bank of China is among 357 institutional investors including mutual funds and insurance companies that have invested Rs 15,000 crore in ICICI Bank's Qualified Institutional Placement (QIP) offer in the last few days. ICICI Bank tried to raise money from institutional investors to raise capital and its target was met only last week.
China's central bank has invested only Rs 15 crore in ICICI and this investment has been made through qualified institutional placements. Other foreign investors of ICICI Bank include the Government of Singapore, Morgan Investment, Societe Generale. Experts say that banking is a very regulated business in India, which is under the strict supervision of the Reserve Bank, so there can be no risk to the national interest.