ICICI Bank has received an aggregate equity capital repatriation of Canadian $75 million (or Rs 402 crore) from its wholly-owned subsidiary, ICICI Bank Canada.
In March 2013, India’s largest private sector bank had repatriated $100 million of capital from its subsidiary in the UK.
For improving ROE
ICICI Bank, in a statement, said it had commenced efforts to repatriate capital from its overseas banking subsidiaries in order to optimise capital for the ICICI Group and improve its return on equity.
The repatriation of capital from the Canadian subsidiary is in continuation of this effort.
Post the repatriation, the share capital of ICICI Bank Canada is C$857 million and its capital adequacy ratio continues to be strong, according to the bank’s statement. ICICI Bank Canada had a capital-adequacy ratio of 33.2 per cent at March 31, 2013.
The bank, however, did not specify by how much its capital adequacy will improve post the capital repatriation from its Canadian subsidiary.