Foreign direct investment (FDI) norms that classify ICICI Bank as foreign-owned were unlikely to impede the group's expansion plans, said ICICI Bank Managing Director and Chief Executive Officer Chanda Kochhar.
"We are an Indian originated bank, controlled by an Indian management and governed by the Reserve Bank of India," Kocchar told reporters after inaugurating the bank's 2,000th branch in Mumbai on Monday.
"Nothing has changed in our ownership structure in the recent past, so we do not think there are any hitches in our expansion plans," she added.
It was feared that ICICI Bank's classification as foreign-owned would hinder its investment in subsidiaries in sectors which are subject to a cap on foreign investment.
For instance, the bank has a life insurance venture with Prudential Plc and a general insurance firm with Lombard.
Both Lombard and Prudential own 26 per cent in the respective ventures, which is the maximum foreign investment allowed in the insurance sector.
If ICICI Bank's investment in the insurance companies is considered as foreign investment, both insurance firms would be in breach of insurance FDI norms.
Kochhar, however, said the bank's expansion plans would not be affected. The bank on Monday said it planned to add about 7,000 people to its rolls in the current financial year.
"We have also declared bonus and increments for our employees," Kochhar added. The bank will continue to grow its branch network in the current financial year. She, however, declined to specify the number of branches, ICICI plans to open in the current financial year, saying that the bank had applied for branches but has not received licences yet.
The bank has 33 per cent branches in metro areas, 26 per cent in other urban areas and 41 per cent in semi-urban and rural areas.
When asked on the bank's overseas expansion plans, Kochhar said, "We are in the process of applying (for new branches overseas). This year, we are more into expanding and deepening our presence in the locations we are already present in."
