BackICICI Bank to repatriate further capital from UK and Canada subsidiaries
ICICI Bank Canada and ICICI Bank UK had capital adequacy ratios of 33.2% and 21.8% respectively on 31 December 2014
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Mumbai: ICICI Bank Ltd on Monday stated that it has started the process of repatriation of capital from two of its wholly owned overseas subsidiaries, in order to shore up capital for the ICICI Group and improve its return on equity.
In a statement to stock exchanges, the largest private sector bank by assets said that this month, it had received approvals to repatriate 80 million Canadian dollars from ICICI Bank Canada and $75 million from ICICI Bank United Kingdom.
The bank had previously received approvals and repatriated $100 million from ICICI Bank UK in March 2013 and 75 million Canadian dollars from ICICI Bank Canada in May 2013, the statement said.
ICICI Bank Canada and ICICI Bank UK had capital adequacy ratios of 33.2% and 21.8% respectively on 31 December 2014.
“Post the repatriation, the share capital of ICICI Bank Canada is 777 million Canadian dollars and of ICICI Bank UK is $420 million, and their capital adequacy ratios continue to be strong," the statement said.
ICICI Bank has a capital adequacy ratio of 16.39% as on 31 December 2014, down from 16.81% a year ago. According to Basel III norms, banks have to maintain a capital adequacy of at least 9%.
Capital adequacy is a measure of a bank’s financial strength and is expressed as a ratio of capital to risk-weighted assets.
The return of capital would further enhance ICICI Bank’s ability to optimize deployment of capital and return of equity, the statement said.
At 1.46pm, ICICI Bank Ltd was trading at ₹ 317.80 on the BSE, up 1.1% from its previous close, while India’s benchmark Sensex was up 1.4% to 27,832.33 points.
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