Mumbai: India’s largest private sector lender ICICI Bank on 4 September said it can mobilise up to $75 billion dollars in the next three to five years to meet the growing economy’s credit requirement by leveraging the bank’s just concluded $5 billion public offer.
The bank today closed a syndicated loan of 1.5 billion dollars (in yen denomination), which is the largest ever such borrowing by an Indian financial institution.
ICICI had raised about $6.5 billion in the previous financial year to meet the growing credit requirements of India’s economy.
“Banking is all (about) leveraging... we just now concluded the five billion dollar public offer... this can help us raise funds from borrowing in the ratio of one to ten,” ICICI Bank managing director and CEO K V Kamath told PTI.
This, coupled with internal generation, could help us generate funds between $50-$75 billion that could be used for the credit needs of the country, said the banker who was bullish about the sustainable high growth of India.
Kamath, however, declined to comment on any of the bank’s financial plans and borrowing details.
ICICI, which tops the list of banks in terms of market capitalisation and in the retail banking segment, however, is constrained by the limitations on the branch expansion. “Branch licensing needs to be liberalised... In private sector, there are very small banks, ”said Kamath.
ICICI had last year acquired a small cooperative institution in Maharashtra — Sangli Bank.
Kamath made it clear that as such there were no banks in the private sector on its radar for acquisition.
The preferred way for the growth of ICICI, Kamath said, would be through organic route for which he hoped that the bank would get opportunities sooner than later to expand the branch network.
ICICI has a highly efficient team of executives and its technology is comparable to the best in the world, and what it lacked was the number of branches, said Kamath. ICICI has about 1,000 branches compared to nearly 10,000 branches that the SBI group has.
Asked about the reports on his conflict with Deepak Parekh, who heads the rival private sector HDFC Bank, Kamath said that “I have a great respect for Deepak... He is someone I look up to.”
Complementing Deepak for creating an “institution of excellence”, Kamath said that there was neither any animosity nor any rivalry between the two. “In fact, whenever I have asked for anything, he has always done it for me but never in any patronising manner... there could have been many occasions when he could have said no.”