Icici To Focus On Retail Business On Universal Banking Route

In the run up to its conversion into a universal bank, term lending institution ICICI has been focusing on retail business in a big way.

In its filing to the Securities & Exchange Commission (SEC), ICICI has said that over the past three years it had launched consumer credit products like automobile loans, home loans, two-wheeler loans, loans for commercial vehicles and personal loans.

The retail lending activities was at 3.2 per cent of ICICI's gross loans for the year ended March 2001, up from less than one per cent the year before.

ICICI's retail sanctions for fiscal 2001 (year ending March 31, 2001) increased by 343 per cent to Rs 4,160 crore from Rs 940 crore the previous year. The retail disbursements increased 387 per cent to Rs 3,460 crore from Rs 710 crore in fiscal 2000.

The retail portfolio of the FI increased to Rs 2710 crore for the fiscal ended 2001 from Rs 670 crore the previous year.

ICICI claims to have a leadership position in the automobile finance segment in terms of incremental business and have the status of "preferred financier" with 10 car manufacturers.

The automobile loans disbursed by it in fiscal 2001 was at Rs 1,460 crore as against Rs 280 crore in the previous year.

ICICI Home Finance Company, a 100 per cent subsidiary of ICICI, disbursed loans worth Rs 700 crore in March end 2001 compared to Rs 170 crore the previous year. It also disbursed personal loans worth Rs 120 crore in fiscal 2001 as against Rs 3 crore the previous year.

The FI has funded dealers who sell automobiles, two-wheelers, consumer durables and commercial vehicles in fiscal 2001 to the tune of Rs 850 crore as against Rs 190 crore in fiscal 2000. In commercial vehicle financing, the disbursements was at Rs 200 crore for fiscal 2001 while the amount disbursed for consumer durable finance for financing of home products-- refrigerators, televisions, washing machines, air conditioners, two-wheeler vehicles and audio equipment -- was Rs 70 crore.