The largest private sector lender of the country, ICICI Bank is planning its domestic expansion across small towns and cities of India by acquisition of local banks. The major hurdle in this process though is the scarcity of available lenders for acquisition.

Speaking on this dilemma, MD and CEO Chanda Kochhar said, "We have covered some parts, but there is huge space for growth." "However, there is no new opportunity at this point of time," she said.

The banking major has returned back to its expansion spree after a brief halt during the global economic slowdown in 2008. The recent acquisition of the bank has been of the troubled Bank of Rajasthan.

Strategically BoR is a valuable deal as it increases the branch network by 25% with an equity dilution of just about 3%,'' said Kochhar. "The acquisition enhanced our access into the northern and western markets."

"In the overseas market, we will be even more careful. There are a lot of opportunities but at the same time it comes with additional challenges," said Kochhar pointing out that even if affordable, the bank will be consicous in any overseas deal.