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Industrial Credit and Investment Corporation of India (ICICI) Bank Ltd. on Wednesday had decided to raise a funding of Rs 15,000 crore by share sale as it will result in strengthening its balance sheet in an uncertain economic environment byduring pandemic.
ICICI offers a wide range of banking products and financial services for retail customers and corporates. The bank has a network of 5,275 branches across India and has a presence in 17 countries with its specialised subsidiaries in the areas of investment banking, life, non-life insurance, venture capital, and asset management.
It has also raised Rs 8,750 crore via issuance of fresh shares in June 2007. Now the private lender has proposed fund raise after a gap of 13 yrs. ICICI had already sold a part of its holdings in its two insurance subsidiaries last month and raised Rs 3,090 crore. The Board of ICICI Bank Ltd. had approved an investment of Rs 1,000 crore in Yes Bank Ltd. which resulted in an excess of a five percent shareholding of ICICI Bank Limited holding in Yes Bank in March, 2020.The bank’s Tier-1 Capital Ratio was at 14.72% for fiscal 2020 and 15.09% for 2019.
The Bank’s Board voted in the favour to raise latest funds by issuance of shares or by the combination of private placement, preferential issue, qualified institutions placement, follow-on public offering. Due to the lockdown the repayment ability of borrowers had been affected and the private banks are raising capital ensuring that they are sufficiently capitalised.
