ICICI Bank on Saturday posted lower-than-expected fourth-quarter earnings due to higher cost of funds. ICICI Bank’s net profit rose mere 4.45% to Rs 825.12 crore in the quarter ended March 2007, as against Rs 789.93 crore during the previous quarter ended March 2006. Total income for the bank rose 54.2% at Rs 8495 crore.
Concerns of equity dilution also weighed on the counter. Along with Q4 results, ICICI Bank’s board also approved raising additional equity capital by way of a public issue of shares and American Depositary Shares (ADSs). The exercise is expected to generate around Rs 20000 crore. The approval of shareholders will be sought by postal ballot, the private sector bank said.
ICICI Bank stock is hit by concerns of huge equity dilution and is also a Big Drag on Sensex.