ICICI is open for domestic takeover than going for overseas buy: Kochhar

After missing a chance of global acquisition in 2008, on Sunday ICICI Bank said it is ready for domestic takeover as it is better to go for takeover in India in the current environment rather than going for overseas buy.

ICICI Bank CEO and managing director Chanda Kochhar speaking about acquisition prospects this year and the elusive search for a property last year said, “I am always open... but the question will always be in terms of what is available and at what value, and then you weigh the option”.

Emphasizing that the bank with over 17 per cent capital adequacy ratio is the best capitalized unit in the world, thus she said, “So, clearly, what I would say, we are definitely growing in India, when one talks of aggression. Again, in a way to put that in context, we are definitely a growth organization and the growth DNA continues.”

Urging further on the bank’s willingness for acquisition at the right value offer, she clarified, “But that doesn’t mean that anything is on the cards. If you write it that way, investors will think I am acquiring something. I am always open.”

She gave a positive reply to a question whether acquisition within India made more sense than one overseas.

Ms Kochhar informed in March bank had formed a “strategic committee” in March 2008 for exploring an acquisition. “When the committee was formed, what we were planning frankly at that time (was) on the international side.” In response to whether bank is still opened to acquire global property, Ms Kochhar said, “(We are) clearly not looking for any international acquisition because in the current scenario the risk on the international portfolio are still unknown.”

She informed, “As of now, we are neither growing out presence in the international market from where we are because we are already present in 18 countries. We have substantial number of branches so we don’t see requirement to grow (in overseas markets)”.

Earlier the strategy committee which was formed for acquisitions last year was dispersed, as the planned purchase did not took place. Moreover, Ms Kochhar said, “Our focus is to grow as the Indian corporate grows here, and even international focus was always to grow with international requirements of the Indian corporate.”

Now the concern is, she said, “Is whether you grow organically or inorganically. Well, we have capacity to set up 580 branches in one year. So, obviously one then weighs what is the cost of acquiring a bank of similar size or is it more economical to do it internally.”