New Delhi: Country's largest private lender ICICI Bank plans to raise Rs 20,000 crore from India and the US to meet the company's expansion projects.
ICICI Managing Director K V Kamath on Saturday said that the bank was planning to hit the market by June and final details are being worked out.
In the light of the strong corporate demand and increased credit requirement, the bank board approved the raising of additional equity capital of about Rs 20,000 crore by way of a public issue of shares in India and American Depository Receipts Shares in the US, subject to necessary approval.
"The decision to enhance equity capital is a proactive move by the bank to leverage the business opportunity, move towards appropriate regulatory capitalisation levels and global benchmark of scale," PTI quoted ICICI's Joint Managing Director Kalpana Morparia as saying.
"The opportunity in India is about $500 billion. The infrastructure and capacities of the corporates would double in the next three years. We need to take a step change," Kamath added.
The bank is finalising the details of the equity issue and is most likely to hit the markets by June, he said adding "the capital is good for us for the next three years."
The bank has registered a modest four per cent growth in net profit for the fourth quarter ended March 31 at Rs 825 crore as against Rs 790 crore during the corresponding period in the previous fiscal.
The net profit was affected by increased provisioning of Rs 320 crore in compliance with the Reserve Bank's notification that required banks to make increased general provisioning, Moraparia said.
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