We are not adventurous in giving loans: ICICI's Kochhar

ICICI Bank on Sunday said it was conservative when it comes to growing its businesses and that its deposits and savings are showing an increasing trend.

“Our current and saving account base has been increasing on a month-on-month basis. We have a trend of increase of CASA,” ICICI Bank Joint Managing Director Chanda Kochhar said, when asked about depletion in deposits following rumours casting doubts about the lender’s financial health. She lashed out at “vested interests” for spreading such rumours, which caused some apprehension among depositors.

On a query whether it had given huge loans without essential securities and collaterals, she said: “We are not adventurous in giving loans just to increase businesses. We follow prudential and conservative approach for our business both in India and overseas subsidiaries.”

 

The bank has gone by clearly set-out risk management practices.

There is a whole set of parameters on the basis of which risk assessment is done, she added.

Kochhar said the bank has never disbursed any loans without ascertaining the credit profile of its customers and whatever pre-approved loans it has been giving out have been to its existing customers after profile appraisal.

“It is not as if you can walk in and take loan without any documents or collateral. If there are existing customers such as those with salary accounts with our bank, they are given pre-approved loans,” she said.