ICICI Bank Ltd. plans to raise as much as $1 billion by selling a stake in its investment banking and securities unit in the next four months. ICICI Bank said Jan. 19 it planned to sell shares in its ICICI Securities Ltd. unit. The Mumbai-based bank also plans to monetize its investments in other units such as insurance joint ventures and asset management company.
The asset sales would help the bank raise funds for loans after lending grew 25 percent in the fiscal third quarter as companies borrowed more in an economy poised to expand at 9 percent for a third year. ICICI Bank has ``negligible'''' investments related to the U.S. subprime mortgages and the credit squeeze in global markets won''t slow the bank''s global expansion plans, said the source. The bank plans to expand its global assets as the domestic loan demand growth slows with rising prices and interest rates. ICICI Bank, which raised $10 billion last year in overseas debt, will also use its branches in the U.K. and Canada to boost funds.
The asset sales would help the bank raise funds for loans after lending grew 25 percent in the fiscal third quarter as companies borrowed more in an economy poised to expand at 9 percent for a third year. ICICI Bank has ``negligible'''' investments related to the U.S. subprime mortgages and the credit squeeze in global markets won''t slow the bank''s global expansion plans, said the source. The bank plans to expand its global assets as the domestic loan demand growth slows with rising prices and interest rates. ICICI Bank, which raised $10 billion last year in overseas debt, will also use its branches in the U.K. and Canada to boost funds.
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