ICICI Bank to further offload stakes in subsidiaries: Kochhar

ICICI Bank will further dilute stake in its subsidiaries to unlock their value, Managing Director Chanda Kochhar has said.

The bank, she said in her message to shareholders, will "focus on capital efficiency and further unlocking of value in subsidiaries".

During 2015-16, the bank which has several subsidiaries, offloaded part of its stake in both life and non-life insurance arms.

"We demonstrated the substantial value created by our subsidiaries, with a 6 percent stake sale in ICICI Prudential Life Insurance Company at a company valuation of Rs 32,500 crore and a 9 percent stake sale in ICICI Lombard General Insurance Company at a company valuation of Rs 17,225 crore," she said.

The bank continues to focus on cost efficiency, she said, adding that it would be on sustaining robust funding profile.

The Bank maintained a very strong capital position, with Tier-1 capital adequacy of 13.09 percent and a total capital adequacy of 16.64 percent, well above the regulatory requirements.

"We continued to strengthen our position across the financial sector. Our insurance subsidiaries maintained their leadership position among private sector players. ICICI Prudential Asset Management Company became the largest mutual fund in India, with assets under management of over Rs 1.8 trillion," she said.

Talking about priorities, Kochhar said, resolution of exposures through asset sales by borrowers, change in management and working with stakeholders to ensure that companies are able to operate at an optimal level and generate cash flows is on the agenda.

The other priorities include proactive monitoring of loan portfolios across businesses.