Icici Picks 75% Of 5-Year Floater Gilt

ICICI picked up 75 per cent of the five-year floating rate papers auctioned on Wednesday.

A senior ICICI executive said: "We have picked up Rs 1,500 crore from this auction." With this, ICICI's total SLR (statutory liquidity ratio) holdings since the announcement of its reverse merger with ICICI Bank has moved up by Rs 4,500 crore.

"We are on course. We need Rs 18,000 crore worth of SLR holdings once we become a bank. About 25 per cent of the target has been met," the official said.

The floating rate paper, auctioned for Rs 2,000 crore, was oversubscribed by more than 416 per cent. The Reserve Bank of India (RBI) received bids worth Rs 10,315 crore. The cut-off mark-up set by the central bank was -0.05 per cent.

 

Based on the mark-up, the rate of interest on the bond for the first six months of the coupon period works out to be 7.01 per cent. This was the first floating rate paper auctioned by the RBI.

ICICI and ICICI Bank had SLR portfolios of Rs 400 crore and 4,070 crore, respectively, as on March 31. The merged entity will come into existence on March 31 or the day it receives the RBI approval, whichever is earlier.

The incremental gilts liability of ICICI almost matches the deposit mop-up of ICICI Bank which has raised Rs 4,000 crore in the past one-and-a-half month.

Around two-third of the deposits are from corporates with the remaining from retail deposits. Most of the corporate deposits have a tenure of six months to one year. As on September 30, ICICI Bank had a deposit base of Rs 17,515 crore.

The total assets of ICICI and ICICI Bank as on September 30 were Rs 95,000 crore. The net worth of the two entities stood at 9,500 crore, while capital adequacy ratio was at 11.75 per cent with tier-I capital contributing around 7.5 per cent.