Mumbai, Jul 8 (PTI) Second largest private sector lender ICICI Bank on Wednesday said its board has decided to raise up to Rs 15,000 crore in core capital through a variety of routes.
The lender joins peers, including Axis Bank, Kotak Mahindra Bank, Federal Bank and Yes Bank, who have either raised fresh capital or decided to do so soon, amid the COVID-19 pandemic.
The board, at its meeting held today, has approved raising of funds for an amount aggregating up to Rs 15,000 crore in one or more tranches, ICICI Bank said in a regulatory filing on Wednesday.
The money will be raised either through a private placement of shares or preferential issue or qualified institutions placement (QIP) or follow-on public offering (FPO), or a combination thereof, it added.
The issue will be undertaken subject to shareholders' approval through postal ballot process and other regulatory approvals.
The board has constituted and authorised an 'issuance committee' to decide the terms and conditions of the proposed fund raise, it added.
The bank's overall capital adequacy had stood at 16.11 per cent, with the core tier-I ratio at a comfortable 14.72 per cent as of March 31. Its standalone net had increased 26 per cent to Rs 1,221 crore for the March quarter.
It can be noted that credit growth is very sluggish at present due to the overall impact on the economy because of the COVID-19 pandemic.
Kotak Mahindra Bank raised over Rs 7,700 crore in a QIP in May, Yes Bank has begun a process to raise up to Rs 15,000 crore through an FPO, Axis Bank has got board nod to raise up to Rs 15,000 crore while Federal Bank has hinted at raising up to Rs 12,000 crore next year after getting a board clearance last month.
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