ICICI Bank to foray into Russian stock market

Vinay Shukla
Moscow, October 3 (PTI) Wholly-owned Russian subsidiary of India's largest private bank I.C.I.C.I. is to make foray into the local stock market, highly undervalued due to withdrawal of speculative foreign capital.

According to a press release of the Russian Federal
Service for Financial Markets (F.S.F.R.), I.C.I.C.I. Bank
Eurasia LLC has been granted the licence for activities
including stocks trading, brokerage, dealership and
depositary.

I.C.I.C.I. Bank had opened its wholly-owned Russian
subsidiary three years ago after acquiring a fully operation
regional bank in the nearby Kaluga region.

While announcing a major bailout package to ease credit
and liquidity crunch to prop volatile bourses last month,
Prime Minister Vladimir Putin had said the Russian stocks were
'highly undervalued' under the influence of U.S. financial
crisis and flight of speculative capital.

However, I.C.I.C.I. Bank Eurasia LLC, which shed its 29
percent assets in January-August 2008 after a successful year
of 2007, when they increased by 2.2 times, has dropped 'for
the time being' the facility of providing mortgage loans to
individuals.

"So far, there is no clarity about the cost of attracting
resources and providing long-term loans is rather risky,"
acting CEO of I.C.I.C.I. Bank Eurasia Vladislav Voytsekhovich
was quoted as saying by 'Kommersant' business daily.

"We will focus on attracting deposits and corporate
business as the mother bank has no plans for additional
financing of the Russian project," Voytsekhovich of I.C.I.C.I.
Bank's Russia subsidiary said. PTI VS