ICICI Bank plans to save around Rs 1,800 crore through its liability restructuring. The banks wants to retire Rs 45,000 crore of bonds in two financial years beginning this year and swapping them with deposits which carry interest rate of 7 per cent at present.
The second largest bank, following its reverse merger with parent ICICI, is aiming at a modest growth of 8-10 per cent during the current financial year, H N Sinor, joint managing director, said on the sidelines of the three-day International Banking Summit, organised by Indian Institute of Bankers.
While about Rs 22,000 crore worth of bonds are to be redeemed during the current financial year, another Rs 23,000 crore is proposed to be swapped during 2003-04. Thus far, Rs 12,000 crore bonds have already been swapped with deposits carrying 7 per cent rate. The weighted average cost of interest on the bonds is 11 per cent, Sinor said.
