ICICI Bank exits South Indian Bank

Mumbai, March 22 | Updated: Mar 23 2006, 05:30am hrs
After exiting from Federal Bank, taking the opportunity of booming Sensex, ICICI Bank has offloaded its entire 6.7% South Indian Bank portfolio for a consideration of Rs 30.23 crore on Wednesday. ICICI Bank had sold a total of 47.23 lakh shares of South Indian Bank Ltd in a bulk deal worth Rs 30.23 crore. The bank was looking for the right opportunity to bring down its stake in South India Bank to 5% in a bid to comply with the regulatory requirement.

The buyers in the deal were India Capital Fund and Goldman Sachs Investment. While India Capital Fund bought a total of 25.74 lakh shares, Goldman Sachs were the buyers of 12 lakh shares.

ICICI Bank held 9.91% stake in the South Indian Bank as on December 31, 2005.

However, post the follow on public issue of South Indian Bank of Rs 150 crore, the formers stake in South Indian Bank declined to 6.7%.

The stock of South Indian Bank has been witnessing an unimpressive run on the bourses in the recent past. On BSE, the stock lost 1.36% on Wednesday to end the day at Rs 61.80. The stock has lost more than 10% in the last one month since February 22.

Menwhile the Thrissur based bank is targeting to achieve a total business level of Rs. 25,000 crore for the bank by the end of 2008 with a network of 500 branches covering about 22 states and an estimated net worth of about 1000 crore. The other plans on the anvil include increasing the number of branches to 450 from 435, and online ATMs from the current 144 to 150 by March 2006.