The Bank is confident that two major segments of retail loans -- consumer loan and mortgages -- would grow at rapidly in the state during the current fiscal even amid the much talked about downturn.
The private sector lender aims to achieve growth by expanding mortgage advances by 20 per cent year-on-year to about Rs 2,500 crore in FY20. It will also grow consumer loans, largely consisting of car, two-wheeler and commercial vehicle loans, by 30 per cent to Rs 1,700 crore.
“Retail consumer loans have witnessed significant growth in UP over the last few years. There has been robust growth in the state’s economy and we see the potential of increasing our retail loan disbursement by 23 per cent to Rs 4,900 crore in FY20.
We are focusing on consumer loans and home loans for our growth target,” ICICI Bank executive director Anup Bagchi told the media in an interaction.
He said two significant drivers of growth were the Bank’s technology-led instantaneous loan offering and its focus on tier-II and III markets. “Armed with our technological prowess, we now offer home loans, personal and auto loans to pre-approved customers instantaneously through our digital channels,” he said.
In mortgages, the Bank is focussing strongly on affordable housing, especially in major cities such as Lucknow, Kanpur, Agra, Mathura and Aligarh.
Bagchi said ICICI Bank is also expanding its home loan proposition to tier-II & III cities like Varanasi, Gorakhpur and Bareilly, which have robust housing potential.
Responding to a Business Standard query, he said the bank also seeks to increase its current network of 260 branches in UP by 10-15 per cent this financial year for greater penetration and market reach.
Meanwhile, to make home loan disbursals quicker, the lender has ramped up its credit processing units from three to 13 centres in cities like Moradabad, Gorakhpur, Jhansi, Prayagraj, Mathura and Saharanpur. It plans to add three more units this fiscal, taking the total to 16 in the state.
Further, ICICI Bank is focusing on introducing innovative digital solutions for entrepreneurs and the Micro Small and Medium Enterprise (MSME) industry that offers them with an enhanced ease of doing business and greater opportunities for business expansion.
The lender is also supporting entrepreneurship among rural women through its Joint Liability Group (JLG) programme. So far, it has disbursed Rs 340 crore in loans to over 120,000 women under the programme. At the same time, ICICI Group is involved in imparting free-of-cost vocational training to underprivileged youth in UP through the ICICI Academy for Skills.