ICICI Bank UK repatriates $200 million capital to parent firm in India

ICICI Bank UK repatriates $200 million capital to parent firm in India

UK Plc, a subsidiary of private lender ICICI Bank, has sent equity capital worth $200 million back to its parent in the second quarter ended September 2021 (Q2FY22).

It was surplus capital in UK subsidiary as loan book there has declined. It will come into the capital base of the parent (ICICI Bank), bank officials said in an analyst call for Q2FY22 results. Its capital adequacy ratio of UK subsidiary stood at 21.7 per cent in September 2021, up from 19.8 per cent in September 2020 (Q2FY21).

This is not the first time the bank has repatriated capital from its foreign arms. In the year ended March 2015, the bank had received equity capital repatriation of Canadian $80 million from Canada and $75 million from UK. Also, earlier in March 2013, the UK subsidiary had sent back capital of $100 million. The Canadian subsidiary had also repatriated capital of Canadian $75 million in May, 2013.

The investment in subsidiaries is reduced while computing capital base adequacy. The extent of reduction has come down (as UK unit repatriated capital), they added.

According to the presentation filed with the BSE, the UK Unit, which is part of international business, saw its loans and advances shrinking to $1.40 billion in September 2021 from $1.98 billion in September 2020 (Q2FY21). The net interest income (NII) was also down to $10.2 million in Q2FY22 from 12.9 billion a year ago.

Its deposits also contracted from $2.12 billion in September 2020 to $1.75 billion in September 2021. The net impaired loans declined to $32.1 million as of September 30, 2021, compared with $77.8 million a year ago. The net profit from UK operations was down to $2 million in Q2FY22 from $4.9 million in Q2FY21.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Source link