Plan to sell bad loans props up ICICI Bank

DALAL STREET SPIKES

ICICI Bank witnessed renewed buying interest from institutions following reports that the bank is planning to sell its bad loans to the Asset Recovery Company of India before its public issue.

According to a dealer, the counter witnessed a block deal of 8.45 lakh shares in afternoon trades after which there was aggressive buying interest among institutional investors.

The block deal was between two financial institutions at an average price of Rs 287 per share, sources said. The stock gained Rs 13 to close at Rs 289.25, a 4.69 per cent rise. The Sensex had witnessed a 26.33 point decline on Wednesday.

ICICI Bank registered a volume of more than 5.16 lakh shares on the Bombay Stock Exchange (BSE). Analysts said the move to sell the bad loans will help the company gain in value ahead of its public issue.

ICICI Bank's public issue is expected to hit the market some time in April-May 2004.