ICICI sees no threat to expansion from nationality

ICICI sees no threat to expansion from nationality

Mumbai, May 3: ICICI Group does not see any problems to its expansion plans due to the government’s FDI norms that classify the bank as foreign-owned. “Nothing has changed in our ownership structure in the recent past, so we do not think there are any hitches in our expansion plans,” ICICI Bank CEO and Managing Director Chanda Kochhar said here today.

Last month, Department of Industrial Policy and Promotion (DIPP) Secretary R P Singh had said that going by the definition, they are certainly a bank which is not owned by Indians, because equity of at least 74 per cent or around 74 per cent is from outside. ICICI Group has life insurance venture with the UK-based Prudential Plc which owns 26 per cent stake, the maximum FDI allowed in the sector.

Going by the classification of ICICI as foreign-owned, it was feared that the entity cannot put more than 26 per cent equity in the insurance venture. Kochhar has, however, dismissed this theory, saying its expansion plans would not be affected. “We are an Indian originated Bank, controlled by an Indian management and governed by the Reserve Bank of India,” she said after inaugurating the bank’s 2000th ATM here. Asked on overseas expansion plans, Kochhar said, “We are in the process of applying (for new branches overseas). This year, we are more into expanding and deepening our presence in the locations we are already present in.” ICICI Bank’s presence spans 19 countries. (IANS)