For the first time since 2007-08 the retail loans have come to constitute more than half of the bank's advances in Q4
Largest private-sector lender ICICI Bank is gradually going back to its heydays of retail growth.
For the first time since 2007-08 retail loans of the bank have come to constitute more than half of its advances for the quarter ended March 31, 2017, and are now at 51.8% of total advances.
Chanda Kochhar, managing director and chief executive officer of ICICI Bank, said in media concall last week, "The year-on-year growth in domestic loans was 14%, driven by retail loans, which grew at 18.5%. This is despite de-growing our overseas loan book by 20%."
In 2007-08 the bank shrunk its balance-sheet and the growth in retail loans were curtailed in a bid to check bad loans or non-performing assets (NPAs), the challenging period when Kochhar took over from K V Kamath as the managing director and chief executive officer.
In the nine years she was at the helm Kochhar managed to consolidate the balance sheet and gradually take back the bank to well-rounded growth with a focus on retail loans.
The unsecured credit card and personal loan portfolio grew 39% year on year to Rs 21,514 crore and was about 4.6% of the overall loan book as on March 31, 2017. This was the segment that the bank was consciously de-growing in 2007-08. The management said in an analyst concall that the bank is continuing to grow the unsecured credit card and personal loan portfolio, primarily driven by a focus on cross-selling other products of the bank
ICICI Bank saw its corporate book shrink by Rs 3,195 crore for the quarter ended March 31, 2017, over the preceding quarter, while the retail book grew by Rs 16,000 crore. The corporate book grew 5.8% over the previous year.
The retail portfolio had gross NPA additions of Rs 440 crore and recoveries and upgrades stood at Rs 524 crore during the fourth quarter.
The retail growth was led by home loans, which grew Rs 5,372 crore over the preceding quarter followed by vehicle loan growth at Rs 2,031 crore. Personal loans grew Rs 1,292.6 crore and credit cards by Rs 272 crore.
The bank achieved robust growth in other segments of the portfolio. Business banking and rural lending segments grew 23% and 19% year on year (yoy) respectively. Commercial vehicle and equipment loans grew 18% yoy.
N S Kannan, chief financial officer and executive director, ICICI Bank told analysts in the concall, "Looking ahead at FY2018, we expect domestic loan growth at around 15% to 16%, driven by around 18 to 20% growth in the retail segment. We would closely monitor the system growth trends, particularly in mortgage lending, and calibrate our approach if required. In the corporate segment, we will continue with our approach of lending to higher rated clients, while reducing concentration risk and focusing on resolutions, leading to an expected net growth of around 5-7% in domestic corporate loans."
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
 "Money")
)
In the nine years she was at the helm Kochhar managed to consolidate the balance sheet and gradually take back the bank to well-rounded growth with a focus on retail loans.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}