ICICI Bank's Rs 15,000 cr equity raise is credit positive: Moody's

Private sector lender ICICI Bank’s Rs 15,000 crore equity raise will strengthen the lender's capital position and is credit positive, says rating agency Moody’s.

It was an important development since the ongoing economic slowdown, exacerbated by the disruptions from the coronavirus outbreak, will have a negative effect on the bank's asset quality and pressure profitability and capital, it added.

The fresh capital raise will add in 170 basis points to the consolidated Common Equity Tier-1 (CET1) ratio from 13.4 per cent at the end of June 2020, after including profit for the June quarter.

Last week, ICICI Bank raised Rs 15,000 crore ($2