Indian private sector lender ICICI Bank has divested its 3.96 % equity stake in ICICI Lombard General Insurance Company for INR22.5bn ($295.3m) to further bolster its balance sheet.

The lender in its stock exchange filing revealed that it offloaded 18m shares of the face value of INR10 each.

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Following this deal, ICICI Bank’s stake in the insurer has declined to 51.9% from 55.86^ at the end of March this year.

The move is part of the bank’s strategy to bolster its balance sheet in the wake of the coronavirus pandemic across India.

While announcing financial results for the quarter ended 31 March 2020, the bank made provisions worth INR27.25bn to counter the impact of the pandemic on its balance sheet.

The bank reported a 26.04% surge in standalone profit to INR12.21bn for the quarter ended March this year.

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In September last year, American private equity company Warburg Pincus divested its remaining 2.7% interest in ICICI Lombard General Insurance for about $194.5m.

Warburg had invested in ICICI Lombard in 2017, ahead of the general insurer’s initial public offering.

The private equity firm purchased the 9% stake in ICICI Lombard from Fairfax Financial In May 2017. Fairfax divested a 12.18% interest in ICICI Lombard in a pre-IPO round to Warburg Pincus and other investors for around $383m.

The private equity firm purchased the 9% stake in ICICI Lombard from Fairfax Financial In May 2017. Fairfax divested a 12.18% interest in ICICI Lombard in a pre-IPO round to Warburg Pincus and other investors for around $383m.

Based on gross direct premium income, ICICI Lombard General Insurance is said to be the fourth-largest non-life insurer in India.

The company offers a wide array of products such as motor, health, crop, fire, personal accident, marine, engineering and liability insurance, through multiple distribution channels.