ICICI Bank plans unsecured loan growth in a measured way

The bank has started expanding its credit card base after four years

ICICI Bank plans to expand its unsecured loan portfolio in a measured way, a senior executive of the bank said today.

"The proportion of unsecured loans (in the bank's overall loan portfolio) will continue to remain small. We are aware of the opportunities in this business. We will continue to offer personal loans and credit cards to our existing customers. We will grow our unsecured loans but it will be measured growth," Rajiv Sabharwal, executive director, told reporters on the sidelines of a conference.

After four years ICICI Bank has started expanding its credit card base. The bank, once the most aggressive credit card player in the country, has not been growing this business since 2008-09 as uncertain economic environment increased the risk of delinquencies.

But the bank has now started growing its unsecured loan portfolio. For ICICI Bank, the number of credit cards at the end of January was 2.84 million compared to 2.82 million in December and 2.77 million in November 2012. ICICI Bank is currently the second largest player in the credit card market.

"We are definitely adding new cards now," Sabharwal said.

ICICI Bank's unsecured retail portfolio increased 12 per cent year-on-year to Rs 3,913 crore at the end of December, 2012. The retail unsecured portfolio was less than 1.5 per cent of the bank's overall loan book.

Separately, Sabharwal said the bank has not witnessed any signs of stress building in its personal loan, credit card and commercial vehicle loan portfolios.