ICICI Bank board to consider proposal to raise capital on Wednesday

ICICI Bank's board will meet on Wednesday to discuss a proposal to raise funds by issuing equity shares to strengthen its financial position. While announcing its earnings for the fourth quarter and fiscal ended March 2020, ICICI Bank had said it will look at further strengthening the balance sheet as opportunities arise.

"A meeting of the Board of Directors of the bank will be held on Wednesday, July 8, 2020 to discuss and consider the proposal of raising funds by issue of equity shares and/or other equity linked securities," it said in a regulatory filing on Sunday.

The issuance of shares will be inclusive of but not limited to a private placement, preferential issue, qualified institutions placement, further public offer or any combination thereof, it said.

The private sector lender said the fund raise proposal is subject to? shareholders' approval as well as regulatory and other approvals, as may be required.

The notification, however, did not spell out any targeted amount on the capital to be raised.

The bank's overall capital adequacy stood at 16.11 per cent, with the core tier-I ratio at a comfortable 14.72 per cent as of March 31.

Its peer Axis Bank had last week announced a plan to raise up to Rs 15,000 crore in capital and there were media reports saying it is in touch with private equity funds for a fund raise.

The filing said the capital raising discussion to take place on Wednesday is in line with a May 9 announcement wherein the lender had said that it will be looking to strengthen the balance sheet as opportunities arise.

On May 9, it had also said that the board has approved to raise Rs 25,000 crore by issuing non-convertible debentures in the domestic market through a private placement, and up to USD 3 billion through issuances of bonds/notes/ offshore certificate of deposits in overseas markets.

In June this year, the bank had sold 1.5 per cent stake in its life insurance subsidiary for around Rs 840 crore with an aim to strengthen the balance sheet.

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Prior to this, the lender had informed about selling a little less than 4 per cent stake in its general insurance subsidiary for Rs 2,250 crore.