ICICI bank to increase operations globally and domestically through organic route

The biggest private sector lender ICICI Bank has plans to increase its operations globally and domestically including through organic route. The bank said that India’s banking space needs a major consolidation wave of mergers and acquisitions.

"The earlier the consolidation happens, better it would be, because of the scale build up and rationalization of technology and skill set it would give to the public sector banks," ICICI Bank's Managing Director and CEO K V Kamath told in an interview.

Kamath said, ICICI bank on its own part is looking to spread out its operations in domestic and overseas markets including through organic route and by increasing its presence in the existing markets.

"We are now in 18 countries and 22-23 per cent of our balance sheet is global assets. The intent is to further scale up our existing overseas operation than expanding the footprint," he noted.

"To go into another territory and build a grass-root business and competing with entrenched local players is not easy. That would be true of any country including the West where the scale is there."

On the question whether the fast-growing economy China was on its radar, Kamath said, "I can categorically say no. For me to assume that I can go into China and do business is not easy."

ICICI bank is the country’s most valued bank and is currently in process of unlocking value in at least six other subsidiaries starting with brokerage arm, the chief of ICICI Bank, ICICI Securities said their current strategy is to grow the business organically.

On Saturday the bank’s board approved a proposal to dilute the stake in I-Sec through an IPO as well as a pre-IPO private placement.