Tag: ICICI Bank

Narayanan Vaghul dies at 88 — Tributes pour in for the father of modern Indian banking

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Renowned Indian banker Narayanan Vaghul passed away in Chennai on Saturday, May 18, at the age of 88, according to a statement issued by his family.

“It is with deep sadness that we announce the passing of Padma Bhushan Narayanan Vaghul this afternoon at Apollo Hospitals Chennai,” the family stated.

Vaghul, celebrated for his instrumental role in shaping ICICI Bank, received the prestigious Padma Bhushan award in 2009.

Tributes poured in as several people took to X (formerly Twitter) to pay their last respects to Vaghul – often hailed as the Father of modern Indian banking.

Biocon Ltd’s executive chairperson and founder, Kiran Mazumdar-Shaw called Vaghul her greatest mentor and said that his legend will live on for posterity.

My greatest mentor breathed his last. I was blessed to know him as my mentor and friend. RIP Mr Vaghul – your legend lives on for posterity. Om Shanthi 🙏 pic.twitter.com/rzjXkf0RJs

— Kiran Mazumdar-Shaw (@kiranshaw) May 18, 2024

Anand Mahindra tweeted how Vaghul was one of the most inspiring and generous people he met.

Today, I grieve for the Bhishma Pitamah of Indian Banking—Mr. N.Vaghul, who passed away this morning.

I grieve not just for a Titan of Indian Business, but for one of the most inspiring & generous people I have ever had the good fortune to encounter.

He was a member of the… pic.twitter.com/YgIs5BsE4d

— anand mahindra (@anandmahindra) May 18, 2024

Former union minister Milind Deora also offered his condolences on X. He wrote Vaghul was a friend and an institution whose legacy will endure.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Renowned Indian banker Padma Bhushan Narayanan Vaghul dies at 88

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Narayanan Vaghul, former Chairman of ICICI Bank and a transformative figure in Indian banking, passed away this afternoon in Chennai at the age of 88. He had been on ventilator support at Apollo Hospital Chennai before his death.

Often hailed as the father of modern Indian banking, Vaghul was instrumental in laying the foundation of ICICI Bank. His illustrious career began at the State Bank of India, where his talents quickly propelled him from a regional branch in Chennai to the central office in Bombay.

Vaghul’s career took a significant turn during his sabbatical at the National Institute of Bank Management (NIBM), where he was appointed director within two years. By 39, he was named executive director of the Central Bank of India, and at 44, he became the youngest Chairman and Managing Director of the Bank of India in 1981.

In 1985, Vaghul assumed leadership of ICICI Bank Limited, one of India’s leading development banks. His 24-year tenure at ICICI was marked by visionary leadership and mentorship. He played a crucial role in grooming future leaders like K V Kamath, who succeeded him as chairman in 2009, as well as many others like Kalpana Morparia and Shikha Sharma, who went on to prominent roles in the banking sector.

Beyond his banking prowess, Vaghul was deeply committed to philanthropy. He was a driving force behind several charitable organizations, including Pratham, GiveIndia, and the Azim Premji Foundation, which focus on education, health, and livelihoods.

In an earlier interview with Forbes, Vaghul reflected on his modest upbringing: “I was in a family of 16 people. And it was quite normal for someone or the other to go hungry… I think I looked at society, and maybe even the country, as a reflection of my own family.”

In recognition of his contributions to trade and industry, Vaghul was awarded the Padma Bhushan by the Government of India in 2010.

Narayanan Vaghul is survived by his wife, son, and daughter. His legacy as a pioneering banker and compassionate philanthropist endures.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

ICICI Lombard Block Deal Exclusive: ICICI Bank buyer, while Bharti Enterprises sells

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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ICICI Bank Ltd. is the buyer in the block deal that took place in ICICI Lombard on Thursday, sources with knowledge of the matter told CNBC-TV18.

The sources also said that Bharti Enterprises is the seller in that transaction.

ICICI Lombard is in focus after 40 lakh shares of the insurance company exchanged hands in a block deal. Based on the number of outstanding shares, the number of shares that changed hands amounts to 0.8% of the total equity.

With this, ICICI Bank has further increased its stake in ICICI Bank. On February 27, ICICI Bank had acquired 81 lakh shares or 1.65% of the total equity through block deals. Bharti Enterprises was the seller in that transaction as well.

Two days later, on February 29, ICICI Bank acquired another 25.14 lakh shares of ICICI Lombard for a sum of ₹431 crore. This round of purchases made ICICI Lombard a subsidiary of ICICI Bank.

The board of ICICI Bank in May 2023 had approved increasing the Mumbai-based private lender’s holding in the insurance company by another 4% in multiple tranches.

Based on the March quarter shareholding pattern, Bharti Enterprises still had a 2.43% stake in ICICI Lombard.

Shares of ICICI Lombard are down to the day’s low, currently trading 1.2% lower at ₹1,702. The stock has risen 18% so far in 2024.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Planning to buy a car this Akshaya Tritiya? Check which bank is offering lowest interest rate

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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As Akshaya Tritiya, the auspicious occasion believed to bring prosperity and success, approaches on May 10 this year, the automotive industry gears up for a surge in sales. Traditionally associated with purchasing gold, this festival has also become synonymous with acquiring new assets, including vehicles like cars and bikes.

In anticipation of this festive period, banks generally come out with offers on car loans to attract consumers looking to make a big-ticket purchase.

Among the banks vying for attention with competitive interest rates are Union Bank of India, State Bank of India, and ICICI Bank.

According to data compiled by Bankbazaar.com, these banks are currently offering car loans of ₹10 lakh for a duration of four years at interest rates ranging from 8.70% to 9.10%.

Union Bank of India is currently offering interest rate of 8.70%, translating to an EMI of ₹24,565 on the same.

State Bank of India (SBI), the largest bank in India, follows closely with an interest rate of 8.75%, along with other major players like Punjab National Bank (PNB), Canara Bank, and Indian Bank, offering the same rate.

The EMI for loans from these banks amounts to ₹24,587.

Bank of India (BOI) offers an interest rate of 8.85%, resulting in an EMI of ₹24,632 for a four-year car loan of ₹10 lakh.

Meanwhile, Bank of Baroda (BOB), a government-owned bank, extends car loans at an interest rate of 8.90%, with an EMI of ₹24,655.

Moving towards the private sector, ICICI Bank offers car loans at a slightly higher interest rate of 9.10%, translating to an EMI of ₹24,745.

Axis Bank follows suit with an interest rate of 9.30%, resulting in an EMI of ₹24,835.

HDFC Bank, another major player, offers car loans at 9.40% interest, with an EMI of ₹24,881.

It’s important to note that the interest rates mentioned here are indicative and subject to change based on the banks’ terms and conditions.

The data was collected by CNBC Awaaz from the banks’ websites on April 23.

The calculation of the EMI is based on a loan amount of ₹10 lakh with a four-year tenure and assumes zero processing and other charges.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Now ICICI Bank’s NRI customers can make UPI payments in India using their international mobile numbers

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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ICICI Bank on Monday (May 6) said it has enabled non-residential Indian (NRI) customers to use their international mobile number to make Unified Payment Interface (UPI) payments instantly in India.

With this facility, the NRI customers of the bank can make payments for their utility bills, merchant and e-commerce transactions with their international mobile number registered with their NRE/NRO bank account held with ICICI Bank in India.

The bank has made this service available through its mobile banking app, iMobile Pay.

Earlier, NRIs had to register an Indian mobile number with their banks to make UPI payments.

To bring forth this facility, ICICI Bank has leveraged on the international infrastructure laid down by National Payments Corporation of India (NPCI) for convenient usage of UPI across countries.

The bank offers this facility across 10 countries namely USA, UK, UAE, Canada, Singapore, Australia, Hong Kong, Oman, Qatar and Saudi Arabia.

NRI customers of the bank can make UPI payments by scanning any Indian QR code, sending money to a UPI ID or any Indian mobile number or Indian bank account.

Here are the steps to activate UPI facility on international mobile number using iMobile Pay:

Step 1: Log in to iMobile Pay app

Step 2: Click on ‘UPI Payments’

Step 3: Verify Mobile Number

Step 4: Click on Manage –> My Profile

Step 5: Create new UPI ID (select from the suggested options)

Step 6: Select the Account Number -> Submit

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Jaiprakash lenders await RBI nod to proceed with NARCL offer

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Jaiprakash Associates’ lead lender, ICICI Bank, has approached the regulator for a green flag to go ahead with the sale of the account to the National Asset Reconstruction Company Ltd (NARCL), multiple people aware of the matter told CNBC-TV18.

CNBC-TV18 had reported earlier that NARCL had submitted a binding bid for ₹10,000 crores to acquire the debt of Jaiprakash Associates Ltd from banks, and given that the Reserve Bank of India (RBI) had previously directed banks to resolve the company’s debt via the National Company Law Tribunal (NCLT), banks may need the regulator’s blessing to accept the offer from NARCL.

The lead banks to Jaiprakash Associates have now submitted an official request to the RBI for its sign-off on the NARCL deal, said three people aware of the matter. Once the RBI gives the go-ahead, banks will start the process by inviting counter bids under the Swiss Challenge mechanism using NARCL’s bid as the base offer, it is understood.

Meanwhile, lenders have already started deliberating on the next steps. At a recently held joint lenders meeting, an initial discussion was held on distribution methodology, assuming NARCL’s offer were to be accepted, said two people directly aware of the matter.

While some lenders like ICICI Bank, were of the view that the distribution should be on the basis of charges held by banks on the company’s assets, others argued for a pari-passu distribution of proceeds, said the people quoted earlier on the condition of anonymity.

Jaiprakash Associates had an outstanding debt of ₹28,870 crores, inclusive of interest, as of March 2024, as per the company’s exchange disclosures. Out of this, about ₹19,000 crores is the principal outstanding, and the rest of the interest accrued over the years, as per a banking executive CNBC-TV18 spoke to.

ICICI Bank, the lead banker to Jaiprakash Associates, under the direction of the RBI, had filed an insolvency and bankruptcy plea against the company in the NCLT in 2018.

Subsequently, the State Bank of India (SBI) had also moved the tribunal to initiate insolvency proceedings against the company in 2022, but the court is yet to rule on the matter.

ICICI Bank, SBI, and IDBI Bank are among the 22 lenders that have exposure to JAL.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

ICICI Bank denies media report of CEO Sandeep Bakhshi intending to quit

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Mumbai-based private lender ICICI Bank has denied “The Morning Context” story of its MD & CEO Sandeep Bakhshi expressing willingness to leave due to personal reasons, calling it “completely baseless and misleading.”

This is the exact text of the bank’s clarification to the exchanges:

We would like to categorically deny the information published in the article regarding ICICI Bank’s MD allegedly expressing willingness to leave his position due to personal reasons. This information is figment of imagination and therefore, completely baseless and misleading. It appears that this rumour is being spread with an ulterior motive and malicious intent in order to harm the Bank and its stakeholders.

The Morning Context had earlier reported that Bakhshi, MD & CEO at the bank since 2018, intends to step down, citing three people with knowledge of the matter. One of the sources said that he has some personal emergency. The report further stated that the Reserve Bank of India is against him stepping down.

In September last year, ICICI Bank had received approval from the RBI to re-appoint Bakhshi as MD & CEO, which was earlier approved by the shareholders at its AGM. As per the recent approval, Bakhshi will remain at the helm till October 2026.

Shares of ICICI Bank have recovered from the opening lows, and are currently trading 0.4% higher at ₹1,154. The stock has more than tripled since Bakhshi took charge of the bank in October 2018 and has been the best performer on the Nifty Bank index in the last five years.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Top six conglomerates now account for a quarter of the country’s market capitalisation

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The rally in ICICI Bank shares has spawned yet another group of companies that boast a market capitalisation of at least ₹10 lakh crore. Including the ICICI Group, the country has six such large business houses, and all of them put together have a market valuation of ₹104 lakh crore, which is 25.5% of the total market capitalisation of all companies listed on the BSE. The combined market valuation companies listed on the BSE stood at ₹407 lakh crore as of Tuesday.

While the salt-to-software conglomerate Tata Group continues to occupy the top spot with an aggregate market capitalisation of ₹30.9 lakh crore, billionaire Mukesh Ambani-led Reliance Group ranks second with a market capitalisation of ₹23.1 lakh crore. Adani Group isn’t far behind on the list, as they command a market cap of ₹16.2 lakh crore.

Interestingly, three of the top six business houses belong to the financial sector, indicating financial firms’ rising clout in the eyes of investors. With an aggregate market capitalisation of ₹13.7 lakh crore, HDFC Group is placed between Adani Group and Bajaj. The Pune-based Bajaj Group has a market capitalisation of ₹10.4 lakh crore, according to data sourced from Bloomberg.

Among the Tata Group companies, stocks of Tata Motors, Tata Power, Trent, Indian Hotels and Voltas have rallied anywhere between 30% and 50% since the beginning of the year. Similarly, Reliance Group, the second-largest group by market capitalization, has witnessed a 15% rise in RIL’s shares and another 63% surge in Jio Financial Services. Among Adani stocks, Adani Ports, Ambuja Cements and Adani Power have generated returns between 17% and 29% so far in 2024.

While HDFC Bank contributed more than 80% to the group’s valuation, ICICI Bank has similar dominance in the group of four listed companies. ICICI Bank on Monday saw its market capitalisation surge past ₹8 lakh crore for the first time.

However, Tata Consultancy Services (TCS), which used to have more than 50% of the group’s market capitalisation, has seen its dominance fall over the period. At ₹13.8 lakh crore, TCS now accounts for 45% of the group’s market valuation. On the flip side, the other two group companies—Tata Motors and Titan—have seen their market share rise. As of Tuesday, Tata Motors accounts for 12% of the group’s valuation, whereas Titan contributes another 10% to the overall valuation.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

ICICI Group becomes sixth conglomerate to breach ₹10 lakh crore in market capitalisation

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The combined market capitalisation of companies listed under ICICI Group went past ₹10 lakh crore for the first time after flagship — ICICI Bank — rose to its record high. The stock of ICICI Bank surged 5% on Monday (April 29), following its better-than-expected March quarter earnings.

ICICI Group — the diversified financial services group with interests in banking, insurance, investment banking, broking and treasury products and services — entered the elite club after Bajaj Group, which had joined in December last year.

Including ICICI Group — there are only six conglomerates in the country that boast a market capitalisation of at least ₹10 lakh crore. Interestingly, three of the top six conglomerates in the country belong to financials, suggesting investors continued inclination towards the sector.

While the country’s salt-to-software conglomerate — Tata Group — continues to occupy the top spot with an aggregate market capitalsation of ₹30.8 lakh crore, billionaire Mukesh Ambani-led Reliance Group ranks second with a market capitalisation of ₹22.9 lakh crore. Similarly, Adani Group and HDFC Group command a market valuation of ₹16 lakh crore and ₹13.7 lakh crore, respectively, according to data sourced from Bloomberg.

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ICICI Bank — the second largest private lender —  commands a market capitalisation of ₹8.15 lakh crore. Similarly, its other listed entities like ICICI Lombard General Insurance and ICICI Prudential Life Insurance command a valuation of ₹84,038 crore and ₹80,668 crore, respectively.

As a result, the bank dominates the group’s valuation by contributing 81% to the group’s valuation, whereas its insurance arms account for another 8% each to the aggregate market capitalisation of the group. ICICI Securities had a market capitalisation of about ₹24,600 crore.

With continued improvement in ICICI Bank’s balance sheet and asset quality, analysts have tuned more bullish on the stock. For instance, Nomura, which has a “BUY” rating on the stock with a 12-month target price of ₹1,335, observed that the bank has delivered another robust quarter aided by lower operating expenses.

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The foreign brokerage expects the bank to report sector-leading 18% loan growth and Return on Equity over FY25-FY26. “We expect ICICI Bank to deliver sector-leading Return on Assets (RoA) of 2.3% and Return on Equity (RoE) of 18% over FY25-FY26 with a 13% PAT CAGR over FY24-FY26,” wrote Nomura in an investor note.

Stocks of ICICI Bank and ICICI Lombard have rallied 16.4% and 20.1% respectively since the beginning of the year. In contrast, the benchmark Nifty50 has gained 4.2% during the same period.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

ICICI Bank becomes the second lender to cross ₹8 lakh crore in market capitalisation

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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ICICI Bank Ltd.’s market capitalisation surged past ₹8 lakh crore on Monday for the first time ever on the back of better-than-expected results for the March quarter.

The private lender gained another 5% on Monday, taking its returns for 2024 to 17%. Shares have outperformed the benchmark Nifty 50 index, which has gained 4% during the same period.

Reliance Industries continues to remain the most valued Indian company, with a market capitalisation of ₹19.8 lakh crore, software major Tata Consultancy Services (TCS) comes second with a ₹14 lakh crore market cap. India’s largest private lender, HDFC Bank has a market capitalisation of ₹11.6 lakh crore and its the only bank in India to have a market capitalisation in excess of ₹10 lakh crore.

State Bank of India, the country’s largest lender had a market capitalisation of ₹7.4 lakh crore.

Analysts continue to remain bullish on ICICI Bank’s continued balance sheet improvement. No analyst has a “sell” rating on the stock, that boasts of 94% of the analysts tracking the stock have a “buy” rating.

Brokerage firm JM Financial wrote in its note that ICICI Bank will retain its valuation premium courtesy of its best-in-class return profile. “ICICI Bank firmly remains on track to deliver 18.5% Return on Equity on average in the next two years, with asset quality in good shape and continued growth momentum,” it said.

You can read more on what analysts had to say on ICICI Bank post its earnings here.

ICICI Bank’s asset quality for the March quarter was the best in nearly a decade, while deposit growth of 19.6% year-on-year was the highest in 12 quarters.

The rally in ICICI Bank, coupled with the underperformance of Kotak Mahindra Bank has narrowed its valuation gap with the latter. At current levels, both the lenders are trading at a one-year forward price-to-book multiple of 2.9x.

Shares of ICICI Bank are trading 4.7% higher at a record high of ₹1,160. The index heavyweight also propelled the Nifty Bank to its own record high of 49,399.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow