Business Standard

IndusInd Bank may enter credit cards, personal loans

Related News

is contemplating an entry into and in the next financial year, according to a senior executive.

“We see good potential in these segments and are considering introducing these products in 2010-11,” said SV Parthasarthy, head of consumer finance at the private sector bank. The lender used to offer personal loans till 2005-06 but stopped due to high delinquencies.

Due to the slowdown, most banks were left with large bad loans in credit card and personal loan segments.

Romesh SobtiTo keep delinquencies in check, bankers have adopted a strategy of targeting customers who already have a relationship with the bank. IndusInd plans to follow the same path. “We are looking to tap our existing customer base,” said Parthasarthy.

“A lot of mistakes have been made but there will possibly be a time when banks are bullish on this segment again. Banks have improved their customer screening processes and with the advent of (credit information bureau), they now have more information on potential customers,” he added.

According to IndusInd Bank Managing Director and CEO Romesh Sobti, the lender plans to expand its retail loan book by 20 per cent in the current financial year. These account for 40 per cent of the bank’s Rs 19,090-crore loan book. IndusInd Bank is a significant player in the vehicle loans space. Loans for commercial vehicles account for 19 per cent of its loan book while other vehicle loans account for about 13 per cent.

Read more on:   
|
|
|
|
|

Read More

Going out of Citi Suvidha? Keep higher balance

Citi India’s ‘Suvidha’ salary account holders will need to maintain a monthly net relationship value of Rs 1 lakh if their salary is no longer ...

Quick Links

More news from Finance Rss icon

Retail bond issuance preferred route of fund raising for NBFCs despite costs

Muthoot Finance is planning to raise Rs 400 cr by public issue of bonds

ICICI Bank not to hire aggressively, skips attrition replacement

The bank which more than doubled its headcount in last five years, has decided not to hire aggressively for now

Kotak-ING Vysya merger: Old pvt banks get thumbs up

Many were up between 3-6%, even as an index tracking banking sector hit an all-time high

Back to Top