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ICICI Bank plans to raise  ₹150 billion (Photo: Bloomberg) (Bloomberg)
ICICI Bank plans to raise 150 billion (Photo: Bloomberg) (Bloomberg)

ICICI Bank plans to raise 150 billion

  • ICICI Bank Ltd plans to raise as much as 150 billion rupees ($2 billion) in capital via shares or equity-linked securities
  • This adds to the list of Indian lenders that are bolstering buffers as the pandemic threatens to push up bad loans

ICICI Bank Ltd plans to raise as much as 150 billion rupees ($2 billion) in capital, adding to the list of Indian lenders that are bolstering buffers as the pandemic threatens to push up bad loans.

The nation’s second-largest private-sector bank will raise the funds via shares or equity-linked securities, it said in a filing Wednesday.

Indian banks are boosting balance sheets in anticipation of more soured debts as the coronavirus hammers businesses and leaves millions jobless. Stronger capital will also make it easier to boost lending once the fallout from the pandemic subsides and companies get back to production.

ICICI Bank has already raised about 31 billion rupees by paring stakes in its publicly traded units including ICICI Prudential Life Insurance Co and ICICI Lombard General Insurance Co, according to exchange filings. The lender had a core equity capital ratio of 13.4% as of March 31, more than double the regulatory requirement of 6.125%.

Read how India’s billionaire banker says lenders should raise capital

Lenders including Axis Bank Ltd, Yes Bank Ltd and HDFC Ltd have also announced plans to tap equity capital markets. Kotak Mahindra Bank Ltd has already raised nearly $1 billion rupees.

According to a Credit Suisse Group AG report in May, Indian banks need to raise $20 billion of capital, of which state-owned banks will require $13 billion, to strengthen buffers against potential loan defaults.

This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.

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