The Hindu Business Line : ICICI Bank plans to raise Rs 20,000 cr

CAPITAL MOVES: Mr K.V. Kamath, Managing Director & CEO, ICICI Bank; Ms Kalpana Moparia (centre), Joint Managing Director; and Ms Chanda Kochhar; Deputy Managing Director, at a press conference in Mumbai on Saturday. — Shashi Ashiwal

Mumbai April 28 ICICI Bank, the second largest bank in the country, said it plans to raise Rs 20,000 crore through issue of equity.

Around three-quarters of the funds are to be raised through issue of American Depository Shares. The rest will be raised domestically.

The fund-raising process will be kick-started on Monday, and the issue is likely to hit the market in June this year, said Mr K.V. Kamath, CEO & MD, at a news conference on Saturday.

"The proportion of domestic and international offering will be fine-tuned later. We might also look at a greenshoe option," he said.

Enhancement of the equity capital is a proactive move to leverage business opportunities, maintain appropriate augmented regulatory capitalisation levels and move towards global benchmarks of scale, said a statement from the company.

"Over the next three years, we see a doubling of infrastructure and manufacturing capacities in India. We see about $500 billion of investments in the pipeline," he said. "Being an early mover is a strategy."

"Assuming a systemic growth of 25 per cent, this capital will sustain us for the next three years," said Ms Kalpana Morparia, Joint Managing Director.

The bank had raised Rs 8,000 crore through its last public issue (domestic issue and ADS) in December 2005.

Q4 EARNINGS

ICICI Bank's fourth quarter net profit grew 4.4 per cent, to Rs 825 crore, up from Rs 790 crore in the corresponding year-ago period.

Profit growth was impacted by a Rs 310-crore increase in general provision requirement stipulated by the RBI on certain categories of loans, said Ms Morparia. General provisions rose four-fold, to Rs 457 for the quarter.

Profit growth before general provisions and tax rose 40 per cent, to Rs 1,369 crore (Rs 975 crore).

Net interest income at Rs 1,875 crore (Rs 1,374 crore) was up 36 per cent, while the net interest margin was slightly lower, at 2.66 per cent (2.79 per cent).

Non-interest income rose 25 per cent, to Rs 1,654 crore. Most of this consisted of fee income (Rs 1,427 crore), which rose 29 per cent. Treasury income, at Rs 446 crore, rose 59 per cent.

The bank's stock had closed at Rs 933.65 on Friday on the BSE, losing 3.15 per cent over the trading day.

More Stories on : Private Banks | Public Offer | ICICI Bank Ltd

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Power shortage: Centre mulling multiple time zones

Raymond Q4 net down 69%

OBC may hike home loan rates for new borrowers

ICICI Bank plans to raise Rs 20,000 cr

ICICI Bank PAT up 22% on higher net interest income

No cash flow statement needed for I-T returns