CALCUTTA, May 22: ICICI Banking Corporation, a wholly-owned subsidiary of Industrial Credit and Investment Corp of India, will offer 4 crore equity shares of Rs 10 each at a premium of Rs 30 per share, merchant banking sources said. The RBI had recently given permission to the promoters for selling 25 per cent of their stake to the public.

The issue is being lead-managed by Kotak Mahindra.

The bank's paid-up capital is Rs 150 crore. The shares were held by ICICI (75 per cent), erstwhile SCICI (25 per cent). The seven signatories to the memorandum and articles of association hold 100 shares of Rs 10 each.

Following the merger of SCICI with ICICI, effective April 1 this year, the bank has become a wholly-owned subsidiary of ICICI. Its capital adequacy ratio on March 31, 1997 was 13.04 per cent of the risk-weighted assets as against the RBI-stipulated 8 per cent.

Deposits grew 84.63 per cent in 1996-97 to Rs 1,347.60 crore. The increase was the highest in savings deposits at 1168.34 per cent on a year-on-year basis. The deposit profile shows that reliance on certificates of deposits (CDs) was reduced to 9.91 per cent of total deposits compared with 24.98 per cent on March 31, 1996. This led to savings in interest costs.The maturity structure of the deposit portfolio showed a shift to the long-term, particularly one year and above.

The share of non-resident and foreign currency deposits in total deposits rose from 6.90 per cent on March 31, 1996, to 10.94 per cent on March 31, 1997. As a result of the added emphasis on retail deposits, the bank now has over 48,800 accounts. The credit-deposit ratio on March 31, 1997 was 59.22 per cent, though the average for the year was higher at 70.19 per cent.

Outstanding loans and advances stood at Rs 798 crore, of which term loans accounted for Rs 89.50 crore.

During 1996-97, net profit was Rs 40.13 crore on a gross income of Rs 237.67 crore. The figure would have been higher by Rs 2.31 crore, but for reclassification of investments on March 31, 1997 as `current' investments in line with the RBI directive on December 11, 1996.

The bank, last fiscal, opened 11 branches and one extension counter. It plans to add 18 more this year, including branches in semi-urban/ rural areas to ensure that 25 per cent of its branches are located in these areas.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.