While banks in India do foresee a huge potential in the coming three to four year and ha
ve chalked out aggressive plans, investors are not willing to look beyond the next quarter. Perhaps that’s why ICICI shares plummeted by almost 10% when K. V. Kamath, CEO, ICICI Bank announce dan equity dilution plan of Rs.20 billion to fund the $500 billion investment in the next couple of years. State Bank of India will also tap capital markets for more funds in the current fiscal year to fuel the expectations of the growing economy. Besides, banks also need to bear the capital charge once Basel II norms are implemented. Hence, banks need to augment the capital base. While private banks have many options to choose from, its the public sector banks, which would need to ponder over resource mobilisation.
For Complete IIPM Article, Click on IIPM Article
ve chalked out aggressive plans, investors are not willing to look beyond the next quarter. Perhaps that’s why ICICI shares plummeted by almost 10% when K. V. Kamath, CEO, ICICI Bank announce dan equity dilution plan of Rs.20 billion to fund the $500 billion investment in the next couple of years. State Bank of India will also tap capital markets for more funds in the current fiscal year to fuel the expectations of the growing economy. Besides, banks also need to bear the capital charge once Basel II norms are implemented. Hence, banks need to augment the capital base. While private banks have many options to choose from, its the public sector banks, which would need to ponder over resource mobilisation.For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2007
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative
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