ICICI Bank weighs share sale of up to $3 billion1 min read . Updated: 24 Jun 2020, 03:45 PM IST
- ICICI Bank is currently targeting a shale sale as soon as September, though the timing could still change depending on market conditions
- The bank plans to start discussions with potential advisers for the offering soon
MUMBAI : ICICI Bank Ltd. is considering raising as much as $3 billion in a share sale as the lender seeks to bolster its capital ratios, according to people familiar with the matter.
The Mumbai-based lender plans to start discussions with potential advisers for the offering soon, said the people, who asked not to be identified as the information is private. ICICI Bank is currently targeting a shale sale as soon as September, though the timing could still change depending on market conditions, the people said.
Shares of ICICI Bank extended losses to as much as 6% on Wednesday after the Bloomberg News story. The stock is down 34% this year, mirroring a 33% slump in the 10-member Bankex index.
India’s second-largest private sector bank will be joining its peers in seeking capital to expand lending business, betting on an economic recovery once the coronavirus pandemic subsides. The country’s lenders may have to raise $20 billion of cash over the next year, according to Credit Suisse Group AG. Of that amount in expected fundraising, state-run banks are estimated to need $13 billion from the government to recapitalize.
Considerations are at an early stage and no final decision has been made on the share sale, the people said. A spokesman for ICICI Bank didn’t immediately respond to an email seeking comment.