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ICICI Bank has commenced its efforts to repatriate capital worth $175 million and C$155 million from its overseas banking subsidiaries (UK and Canada) to optimise capital for the ICICI Group and improve its return on equity.
The country’s largest private bank had received approvals and repatriated $100 million of capital from its wholly owned subsidiary in the United Kingdom (ICICI Bank UK) in March 2013 and C$75 million from its wholly owned subsidiary in Canada (ICICI Bank Canada) in May 2013.
The bank had in March 2015 received further equity capital repatriation of C$80 million from ICICI Bank Canada and $75 million from ICICI Bank UK.
ICICI Bank Canada and ICICI Bank UK had capital adequacy ratios of 33.2 per cent and 21.8 per cent, respectively as of December 31, 2014.
Post the repatriation, the share capital of ICICI Bank Canada is C$777 million and of ICICI Bank UK is $420 million, and their capital adequacy ratios continue to be strong.
ICICI Bank Limited already has a strong capital adequacy ratio, and the above return of capital would further improve the same and enhance ICICI Bank's ability to optimise capital deployment and return on equity.
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