ICICI applied to RBI for 400 new branches, enter rural market

Kolkata, Jun 15 (UNI) ICICI Bank, a leading private sector bank in India, aims to penetrate in the rural market and "B", "C" category cities to open new branches.

Speaking to UNI, ICICI Bank Senior General Manager Rajiv Sabharwal said today that the bank wants to increase the bank's presence in the rural market, specially agricultural commodity market with bouquet of services, from 10 to 15 per cent.

''We have also applied to RBI for permission to open 400 new branches in districts, small towns and "B" and "C" category cities,'' he said adding as a part of the RBI's rule it is mandatory to increase exposure in the rural market.

Currently, the bank has 950 branches altogether and 3,340 ATMs.

Last year the bank opened 111 branches.

In the overeas market, the bank also aims to grow from 19 per cent 25 per cent, he said. The bank has offshore branches in Singapore, Bahrain , Hongkong and South Africa.

The bank will go for a Rs 20,000 crore mammoth Initial Public Offer (IPO) of ICICI bank, which would open for subscribers on June 19.

The mega offer has come as part of a USD 5 Billion capital raising programme. This apart, the bank will raise USD 2.5 billion from the issue of American Depository Shares (ADS).

The bank would require huge capital as there is high capital needs to meet the BASEL II norms which would be effective in 2009.

Of the total issue, retail investors have been allocated 35 per cent on proportional basis, 5 per cent of which has further been reserved to existing retail investors.

Among the rest, 50 per cent will go to Qualified Institutional Bidders(QIBs), wherein 15 per cent to Institutional Bidders.

UNI