ICICI Bank scrip dips over 10% on BSE

MUMBAI: Shares of ICICI Bank, the country's second-largest lender, on Monday fell more than 10 per cent on disappointing fourth quarter results and concerns that its plans to dilute equity would lower returns to shareholders.

The shares plummeted by Rs 89.55 to Rs 844.10 on the Bombay Stock Exchange in intra-day trading. Nearly 10 lakh shares changed hands on the BSE. The scrip later partially recovered to close at Rs 865.90, a decline of 7.26 per cent.

Brokers said the scrip dipped by 10.60 per cent on concerns of capital raising plans by the bank. ICICI Bank chief executive K V Kamath on April 28 had said the bank would sell close to 20 per cent of its equity locally and overseas.

Besides, the lower-than-expected fourth quarter results also triggered the downfall. The bank reported only a marginal four per cent rise in net profit at Rs 825 crore for the quarter ended March 31, 2007 against Rs 790 crore in the same quarter previous fiscal.

The private lender would raise additional equity capital of about Rs 20,000 crore by way of a public issue of shares in India and American Depository Receipts Shares in the US.

The equity dilution plans of the bank would result in reduced return to individual investors and this could have added fuel to the decline of the scrip, market observers said.