ICICI Bank plans to raise up to Rs 50000 crore from bonds

ICICI Bank plans to raise up to Rs 50000 crore from bonds

Private sector ICICI Bank today said it plans to raise up to Rs 50,000 crore from bonds in tranches to fund affordable housing and infrastructure projects.

The bank intends to seek Committee of Executive Directors' (COED) approval to raise funds through issuance of long term bonds in the nature of debenture for lending to long term projects in infrastructure and affordable housing on a private placement basis, ICICI Bank said in a regulatory filing.

The proposal would be considered within a period of 10 days commencing from February 18, it added.

"The bank has taken the approval of shareholders at the Annual General Meeting held on June 29, 2015, for the Board/ Committee of the Board to borrow by way of securities including but not limited to bonds and non-convertible debentures up to Rs 50,000 crore on private placement basis," the company added.

For the third quarter ended December, 2015, ICICI Bank net profit rose 4 per cent to Rs 3,018 crore from Rs 2,889 crore in the same period of 2014-15.

Its total income on standalone basis during the quarter under review increased to Rs 17,562.95 crore from Rs 15,526.88 crore in the year-ago period.

As on December 31, the bank's gross non-performing assets (NPAs) rose to 4.72 per cent of gross advances as against 3.40 per cent in the same quarter of the previous fiscal.

Its net non-performing assets also surged to 2.28 per cent during the period under review.

Net non-performing assets as on December 31, 2015, were Rs 10,014 crore compared to Rs 6,828 crore at September 30, 2015, it said.

Provisioning for bad loans and contingencies rose sharply to Rs 2,844.05 crore in third quarter of the current fiscal compared to Rs 979.69 crore in the same period of the last fiscal

Source:BankingUpdates