₹3000 crore in the past two months through stake sales in its insurance subsidiaries.What explains the need to raise more money when capital adequacy levels trump that of peers?As perverse as it may sound, the best time to raise capital is when you don’t need it immediately.
Raising funds from a position of strength gives a good bargain for the lender. That could explain ICICI Bank’s interest in a share sale right now.
To be sure, the bank’s share price has lost 34% from its peak levels in February but so has the sector index.Analysts believe that more capital could enable the bank to not just survive the pandemic risks but to also grow its book and gain market share.