ICICI Bank to raise funds via debt securities; stock up

The board of the ICICI Bank today said it will also consider fundraising by way of issuance of debt securities through public or private placement and buyback of securities.

"The Board of the Bank at its meeting scheduled on April 22, 2023, will also consider, inter-alia, the following: “fundraising by way of issuance of debt securities including non-convertible debentures/bonds/notes/offshore certificate of deposits in single/multiple tranches in any currency through public/private placement and buyback of securities within the limits that the Board is authorised to approve under applicable law,” the private bank said in an exchange filing.

ICICI Bank's fundraising plan comes months after it raised ₹5,000 crore in December 2022 via bonds to fund business expansion by issuing 50,000 senior unsecured redeemable long-term bonds in debentures on a private placement basis. The coupon on the bond stands at 7.63% and will be listed on the NSE.

The ICICI Bank stock closed up 0.067% at ₹899.6 compared to the previous session close of ₹899 on the NSE today.

The stock has surged 2.38% in return in the past week; 7.55% in the past month; 0.30% in the six months; 0.32% in the year-to-date period and 18.71% in the past year. The banking stock touched a 52-week high on November 30, 2022, while it touched a year-low on June 17, 2022.

At the current share price, the private bank's market cap is ₹6,29,476.48 crore.

ICICI Bank will announce its fourth-quarter financial results on April 22, 2023. In Q3 FY23, the lender had reported a profit after tax at ₹8,312 crore, up 34.2% year-on-year. The bank's net interest income (NII) increased 34.6% year-on-year to ₹16,465 crore in Q3-2023 from ₹12,236 crore in Q3-2022. Total period-end deposits grew 10.3% year-on-year to ₹11,22,049 crore, while the average current account and savings account (CASA) ratio was 44.6% in Q3-2023.

The overall loan portfolio grew by 19.7% year-on-year, and its domestic loan portfolio grew by 21.4% year-on-year. The lender's net non-performing assets ratio declined to 0.55% on December 31, 2022, from 0.61% on September 30, 2022.

The retail loan portfolio grew by 23.4% year-on-year and 4.5% sequentially and comprised 54.3% of the total loan portfolio on December 31, 2022. Including non-fund outstanding, the retail portfolio was 44.9% of the total on December 31, 2022. The business banking portfolio grew by 37.9% year-on-year and 5.2% sequentially on December 31, 2022.