International Business
Don't count ADR, GDR to decide bank's nationality: ICICI
ICICI Bank has asked the government not to take into account overseas securities like ADR and GDR when deciding on whether a bank is Indian or foreign. - FinMin has done good job in Govt borrowing: Kochhar - Prefer buying a domestic bank over global: ICICI - SBI, ICICI home loan rates even out eventually: Kochhar - Will prefer acquiring a domestic bank over global: ICICI - IPOs in 4 group firms possible: ICICI - ICICI Bank IPO in 4 group firms, insurance stake sale possible Suggesting that the Department of Industrial Policy and Promotion (DIPP) should make a clarification on the issue of foreign holding in a bank, an issue on which ICICI Bank"s status depends, its CEO and Managing Director Chanda Kochhar said, "We are an India bank and we are proud of it." Earlier this year, DIPP issued new foreign investment guidelines, under which a company"s status would change from "resident" to "non-resident" Indian, if it has more than 50 per cent of indirect foreign investment, which would be sum-total of stake held through ADRs/GDRs, FDI, NRI holding as also foreign currency convertible bonds and shares. ICICI Bank has little over 51 per cent of stake held by foreign institutional investors (FIIs), but it includes 29.07 per cent held through ADRs alone — thus changing its status to foreign bank as per the new guidelines, which are being debated among the regulators, authorities and companies. "We have written to the Department of Industrial Policy and Promotion and have given our logic. It is important to clarify... We have not received a written response but they are clearly working on addressing the concerns," Kochhar said.Payday Loans commented:
In my opinion,ICICI is at right footing.To decide nationality I think overseas securities like ADR GDR should not be counted otherwise the list will be narrow.
14.12.2011
payday lenders commented:
Overseas securities should not be calculated like ADR,GDR.ICICI bank has told the government not to do this step.
16.03.2012