Not worried by fall in market share: ICICI

ICICI's shares have fallen by half since mid-Sept, and are down about three-quarters in 2008.

ICICI Bank, India’s second-largest bank, is comfortable with a fall in market share as it rebalances its liabilities, and will be well placed to capitalise on opportunities when market conditions improve, its chief executive said.

“We are allowing for a correction to happen in our liability mix. If that warrants some recalibration of our market share, we are comfortable,” chief executive K.V. Kamath said in an interview for the Reuters India Investment Summit.

ICICI, which weathered a storm about its health when investors grew worried about its exposure to the global financial crisis after the collapse of Lehman Brothers in mid-September, has slowed lending as loan defaults rise.

Story continues below this ad

ICICI’s share of deposits and loans in the Indian banking system has slid to 6.5 per cent as at September 2008 from 8.7 per cent in March 2007, according to three brokerages polled by Reuters.

“We now have almost all the businesses that a broad-based bank should have. We will press the accelerator when we see the opportunity,” Kamath said.

ICICI’s shares have fallen by half since mid-September, and are down about three-quarters in 2008.

As its share price tumbled and investor fears grew, the bank repeatedly said in September and October it was healthy and deposits were safe, and the central bank issued a rare statement to say ICICI was well capitalised .

Story continues below this ad

The bank, which is also listed in New York, raised $4.9 billion in mid-2007 but has not used a large part of the money and has adequate funds to take advantage of investment opportunities, Kamath said.

us india trade talks, us india trade negotiations, us india tariffs, us india trade relations, trump modi trade talks, india us commerce ministry, us tariffs on india, india exporters relief package, us india economic relations, india us trade barriers, us india trade deal, india us trade meeting, rajesh agarwal commerce ministry, india us trade dispute, india us bilateral trade

Trade talks ‘positive’, govt says will intensify efforts to close US deal early

Business7 hr ago

India and the US have resumed trade negotiations after the US imposed tariffs on India for buying Russian oil. The sixth round of talks will focus on recognising India's red lines and possibly increasing energy purchases from the US. Other topics include easing patent rules, data flows, and giving US firms procurement access.

View all shorts

Live Blog