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ICICI divesting 25% stake in ICICI Bank

The Industrial Credit and Investment Corporation of India is disinvesting its 25 per cent holding in ICICI Bank by offering for sale 41,250,200 shares of Rs 10 each for cash at a price of Rs 35 per share, aggregating Rs 1.4438 billion. This is pursuant to the licensing conditions as stipulated by the Reserve Bank of India.

In June this year, ICICI had divested 1.248 million shares to employees of ICICI Bank and its group companies at the offer price. ICICI had also taken 15 million shares in ICICI Bank at Rs 35 per share in June.

ICICI Deputy Managing Director Lalita Gupte told reporters in Bombay on Thursday that the issue which would be opened for subscription on August 5 for a week, did not have any reservation quota for any groups including non-resident Indians and foreign institutional investors. If the FII want to purchase, they will have to buy ICICI Bank shares from the secondary market, she added.

The bank, which made a profit of Rs 400 million during the year ended March 31, 1997, will be focusing more on upgrading customer services both in retail and corporate segments.

The bank has a total deposits of Rs 13.476 billion, representing a growth of 84.63 per cent in 1996-97. Advances increased to Rs 7.98 billion during the period from Rs 6.5 billion the previous year. Total income during the year stood at Rs 237.6 million as against the previous fiscal's Rs 141 million.

"There would be no reservations in the issue. It has been aimed at the public at large and 50 per cent of the offer size will be for applicants of over 1000 shares,'' she said.

Earnings per share stood at Rs 2.68. The bank currently has non-performing assets of 1.92 per cent.

Gupte said that the bank laid special emphasis on credit appraisal and set up internal guidelines governing the sanction of credit to clients. It also aimed at expanding branch network from the present 24 to 36 branches during the current year.

In New Delhi, ICICI Chairman M V Maiyya said the bank was at present negotiating with another bank for entering the credit card business. ''The talks are in the preliminary stages and no time frame has, as yet, been fixed for entering the segment,'' he added.

UNI