ICICI Bank eyes 40% growth in FY22 retail loan disbursement in Gujarat

Going forward, bank's expansion focus is on micro markets like textile hub and diamond market in Surat, ceramic market in Morbi, steel, metal and pharma in Ahmedabad and paper units in Vapi

On the back of a host of digital initiatives and customer-centric approach in Gujarat, ICICI Bank on Wednesday announced that its retail loan disbursement in the state is likely to grow by 40 per cent to Rs 32700 crore in financial year 2021-22 on a year-on-year (YoY) basis.

"In Gujarat, we continue to offer improved products and services through a range of digital initiatives. In this state, our endeavour is to create holistic value propositions for our customers. We are focusing on opportunities across the customer ecosystem and micro markets within the state. We have created cross functional teams to bring the benefit of the entire Bank to all customers," said Anup Bagchi, Executive Director, ICICI Bank.

According to Bagchi, the second largest private bank is leveraging technology to expand its retail loan business in Gujarat.  For instance, ICICI Bank expects its mortgage loan disbursement in Gujarat to grow by 35 per cent to Rs 15,700 crore.

Similarly, consumer loans, which mainly comprise personal loan and vehicle loan, are expected to rise by over 30 per cent to Rs 6,000 crore. ICICI Bank also expects to have nearly doubled the business loans and overdrafts disbursement to Rs 8,200 crore.

Talking about mortgage loans, Bagchi said that the drivers for the same in Gujarat were digital and instant sanctions of loans, expansion in the affordable housing segment as well as micro markets, and strengthening distribution networks with developers for direct loan sanctioning.

"Our instant home loan facility—the country’s first—helps lakhs of our pre-approved customers to get the sanction letter immediately. This digital process helped our customers, especially in the past two years, as they could avail of the facility without visiting any branch. Additionally, we are offering mortgage loans to new segments such as industrial projects, building nursing homes and medical clinics as well as senior secondary schools," Bagchi added.

The bank has set up five credit processing centers in Gujarat across cities like Vadodara, Surat, Ankleshwar, Mehsana and Palanpur to enable customers of these areas with easy access to mortgage loans.

Going forward, the bank’s expansion focus is on micro markets like textile hub and diamond market in Surat, ceramic market in Morbi, steel, metal and pharmaceuticals industries in Ahmedabad and paper industries in Vapi.