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ICICI Bank to raise $1 bn

ICICI Bank needs $1 bn to pay off liabilities

ICICI Bank has indicated that it needs to raise $1 billion or Rs 500 crore to cover the $2 billion of liabilities that are coming due for payment this year in its  global operations.

The bank is looking to keep away from inter-bank borrowing and sale of bonds to fund the growth in overseas businesses. Rather, it will raise retail deposits.

This statement comes from chief executive officer-designate Chanda Kochhar who will take over the top position on May 1. Kochhar says that the bank needs to repay $2 billion, of which $1 billion will come from asset maturities and the balance $1 billion needs to be raised. “Raising doesn’t necessarily mean bonds, we could just raise deposits and pay off the remaining liabilities”, she said.

The bank has accumulated the biggest losses compared to other Indian lenders from the overseas investments that turned sour due to the global financial crisis. It offers overseas loans to Indian companies.

The bank’s overseas businesses have grown around 50-60 per cent in the past.