ICICI: Preference Capital Included in Tier-1 Capital

ICICI has included Rs3.5bn of twenty year preference share in its tier-I capital in FY1998 and H1FY1999 in violation of the Reserve Bank of India (RBI) guidelines on capital adequacy. Post the publication of this report, erstwhile ICICI under the leadership of K.V. Kamath and subsequently Chanda Kochhar (CEO, ICICI Bank) declined to interact with the author for nearly two decades.