The ICICI Bank board approved the country's second largest commercial bank's plans to raise up to Rs 3,000 crore (Rs 30 billion) through a domestic public issue of shares by April.

This will be the largest equity float by any private entity in the domestic market, though two state-owned companies, ONGC and Gail, have huge equity-raising plans too.

The bank will hold an extraordinary general meeting on March 12 to seek shareholder approval for the equity issue. The bank will opt for the book-building route to set the offer price. Sources indicated a price band of around Rs 300 for the issue.

Speaking to Business Standard, ICICI Bank Deputy Managing Director Kalpana Morparia said with ICICI Bank almost breaching the overriding 74 per cent foreign holding cap, the bank would have had to make a domestic issue.

The bank's MD and CEO, K V Kamath, said the bank would not issue fresh equity in the next three-four years.

Morparia added that while book-built issues had to reserve 50 per cent for retail investors, should they not opt for the shares, "there could be a higher allocation for FIIs." FIIs registered in India with the Securities and Exchange Board of India are allowed to invest in domestic issues.

With the issue of fresh equity, ICICI Bank's capital adequacy ratio would rise from 11.2 per cent to 15 per cent, Morparia said.

"The demand for credit is expected to increase significantly with continued economic growth, upward migration of household incomes and a soft interest rate regime," the bank said in a release.

The bank is enhancing its equity to strengthen its capital base and leverage opportunities in the Indian retail credit growth and the under-penetrated insurance business, the bank's statement said.

In addition, ICICI Bank has aggressive plans for expanding its overseas branch network, already having a presence in six countries, including the United States, China and Canada. The bank will shortly open an office in Bahrain.

ICICI Bank's proposed fresh equity issue will be part of a string of equity issues set to hit the Indian market in the first quarter of the coming fiscal.