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| ICICI Bank looks at infra finance, mortgage lending |
| BS Reporter / Kolkata Jul 28, 2009, 00:48 IST |
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ICICI Bank is betting on infrastructure finance and mortgage lending to deploy surplus cash, according to Sonjoy Chatterjee, executive director, ICICI Bank.
“The high infrastructure deficit coupled with proactive policy framework creating PPP (public-private partnership) investment opportunities would provide scope in specific sectors such as ports, infrastructure, telecom and railway,” said Chatterjee at a banking conclave organised by the Federation of Indian Chambers of Commerce and Industry here on Monday.
The capital adequacy ratio of the bank was at 17.4 per cent as on June 30, 2009.
The mortgage lending was driven by huge unmet demand shift in construction trends towards affordable housing, said Chatterjee. Money market conditions were supporting recovery in asset prices, and industrial activity was picking up as reflected in rising Producers’ Manufacturing Index, said Chatterjee.
The reduction in prime lending rate (PLR) by most banks since October 2008 ensured liquidity, acording to Chatterjee.
July would be a better month in terms of growth in industrial production, he said.
Signs of revival in industrial production was visible in April and May 2009 when 10 out of 17 broad sectors in manufacturing turned positive, he pointed out. On the corporate sector, Chatterjee said, “Corporate performance is picking up, there has been improvement in their cash accruals and capacity utilization, the funding options are also widening with a strong QIP pipeline and revival of private equity,” he added.
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