ICICI Bank crosses Rs 1.5 trn in home loans, aims for Rs 2 trn by FY20

A first among private peers; now aims for Rs 2 trillion home loan book by FY20.

Share Market News » ICICI Bank on Wednesday said its mortgage loan portfolio crossed Rs 1.5 trillion, a first among private sector banks in the country. It is now aiming to grow its home loan book to Rs 2 trillion by 2019-20. In line with the bank’s renewed focus on the retail segment, it has become the largest mortgage lender among private sector banks.

“We plan to grow at 15 per cent and bring the mortgage book to Rs 2 trillion by the end of FY20,” said Anup Bagchi, executive director, ICICI Bank. The mortgage portfolio forms 52 per cent of the bank’s retail loan book of approximately Rs 3 trillion, he added.

To achieve its Rs 2-trillion target, ICICI Bank is expanding its network to new locations in tier-II and III cities as well as micro-markets on the periphery of major cities.

“We already have branches in those locations, so we are creating branches within branches,” said Bagchi.

The bank currently has 1,050 processing centres and plans to add 560 centres to its network.

Bagchi added that the strongest growth in mortgage loans was coming from tier-II, tier-III and tier-IV cities. The average ticket size stands at over Rs 3 million.

The bank said it has seen big traction from its customers for the ‘housing for all’ scheme. “In terms of affordable home loans, the number of loans given is higher. However, it is slow to contribute to the book,” said Bagchi. The bank claimed that delinquencies were “not a problem”.

ICICI Bank plans to leverage technology to offer home loans and expects digitisation of processes to result in lower operating expenses and lead to significant savings, which would be passed on to customers.

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ICICI Bank extends fall; stock down 11% in four days

The stock dipped nearly 4% to Rs 268 in intra-day trade, extending its 7% decline in past three trading sessions on the BSE.

 

Stock Market News » Shares of ICICI Bank have dipped nearly 4% to Rs 268 in intra-day trade, extending its 7% decline in past three trading sessions on the BSE. The private sector lender’s market capitalisation has eroded by Rs 209-billion in four trading sessions, after the bank said another whistle-blower had accused it of having lax controls over operations.

This is the third instance of such complaint. In the first two complaints, the bank’s Managing Director and Chief Executive Officer Chanda Kochhar is facing an inquiry by the board and is on leave till investigations are over.

The latest complaint relates to the incorrect asset classification of 31 loan accounts, and alleges that interest income and recoveries from non-performing assets (NPA) have been accounted as fees, the Business Standard reported. CLICK HERE TO READ FULL REPORT

Meanwhile, according to PTI report, a preliminary examination by regulator Sebi has favoured adjudication proceedings against ICICI Bank and its CEO Chanda Kochhar for alleged violation of listing disclosure norms regarding ‘conflict of interest’ in business dealings of her husband with Videocon group.

ICICI Bank may face a penalty of up to Rs 250 million under the relevant Sebi regulations for such lapses, while the fine for Kochhar may go up to Rs 10 million, besides other penal actions, added report, quoting a senior official.

At 11:12 am; ICICI Bank was trading 1.8% lower at Rs 274 on the BSE, as compared to 0.05% decline in the S&P BSE Sensex. A combined 8.99 million equity shares changed hands on the counter on the BSE and NSE so far.

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CBI raids NDTV's Prannoy Roy for 2008 deals with ICICI Bank

Complaint by Quantum alleges Rs 48-cr loss caused to bank to benefit NDTV promoters

 

 

Business News - Officers of the Central Bureau of Investigation (CBI) on Monday raided the residence of senior journalist and co-founder of listed broadcaster New Delhi Television (NDTV) Prannoy Roy and other premises linked to the organisation.

 

 

The investigation agency has registered a case against Prannoy Roy, his wife and NDTV co-promoter Radhika Roy, their private firm RRPR Holdings and NDTV India. The First Information Report (FIR) also mentions “unnamed ICICI Bank officials” among the suspects.

 

Shares of NDTV tanked nearly 7 per cent intra-day. The stock plunged 6.74 per cent to Rs 58.10, a 52-week low, on the BSE during the day. Later, it trimmed some of the losses and ended at Rs 60.45, down 2.97 per cent.

NDTV said it would fight the “witch-hunt”. It called the CBI action an attempt to undermine democracy.

 

The FIR, which has alleged criminal conspiracy and invoked Prevention of Corruption Act, was based on a complaint by Quantum Securities, a firm run by Delhi-based stockbroker and NDTV shareholder Sanjay Dutt. Dutt, who once shared a close relationship with the Roys, had lodged several complaints against NDTV and its promoters with various agencies, including the Securities and Exchange Board of India and the income tax department.

A statement from the company said: “It is shocking that the CBI conducted searches on NDTV offices and the residence of its promoters without even conducting a Preliminary Enquiry. This is a blatant political attack on the freedom of the press, as sources confirm that under pressure, the CBI has been compelled to file an FIR based on a shoddy complaint by a disgruntled former consultant at NDTV called Sanjay Dutt, who has been making false allegations and filing cases in courts of law with these false allegations. So far, he has not obtained a single order from any of these courts. Legal analysts are astounded that where courts have rejected giving any order in all these years, the CBI conducts raids based on what is a private complaint".

 

 

HDFC too matches SBI, ICICI's home loan rates at 8.35%

In HDFC, new rates are applicable up to limit of Rs 30 lakh

 

Breaking News : The war for attracting customers for Affordable housing loans intensified on Monday after ICICI Bank and HDFC Ltd. reduced their interest rates by up to 0.3 per cent for loans of up to Rs 30 lakh to promote affordable housing.

New home loans rates for up to Rs 30 lakh for women will be 8.35 per cent and for other others, 8.40 per cent, mortgage lender HDFC Ltd said in a statement.

For home loans above Rs 75 lakh it is now 8.55 per cent, from 8.75 per cent for all, it said. The new rates are effective from Monday and are expected to be followed other lenders as well.

Earlier in the day, the country’s largest private sector lender, ICICI Bank too reduced interest rates by up to 0.3 per cent for home loans up to Rs 30 lakh in its bid to boost affordable housing. With this reduction, salaried borrowers can avail home loans at among the lowest rates in the industry, the country’s largest private sector lender said.

Salaried women borrowers will get home loans at 8.35 per cent and others at 8.40 per cent, it said.

Last week, State Bank of India (SBI) had reduced its affordable home loan rates by up to 25 basis points, offering a lower rate of 8.35 per cent to new women borrowers (read more...)

Free withdrawal days are over: ICICI, Axis, HDFC Bank restore cash charges

The new charges would apply to savings as well as salary accounts effective from today

 Breaking News - Some banks, including HDFC Bank, have begun charging a minimum amount of Rs 150 per transaction for cash deposits and withdrawals beyond four free transactions in a month.

The new charges would apply to savings as well as salary accounts effective from today, leading private sector player HDFC Bank said in a circular.

 

The bank would also cap the third party cash transactions at Rs 25,000 per day, while cash handling charges would be withdrawn effective today, the circular added.

Read Source: Pay Rs 150 After 4 Cash Transactions In A Month At HDFC Bank, ICICI, Axis

 In the case of several banks, including ICICI Bank and Axis Bank, these charges came into effect early in January and are same as they were before the demonetisation move announced on November 8, while there is an increase in such fees in case of some others, including HDFC Bank, today onwards.

These charges are for cash transactions in the branches, and not through ATMs.

The move was seen in some quarters as aimed at discouraging cash transactions and furthering the digital payment drive.

 

For the basic no-frills accounts, maximum four cash withdrawals would continue to remain free and there would be no fees for cash deposits.(read more...)

Pay Rs 150 after 4 cash transactions in a month at HDFC Bank, ICICI, Axis

The bank would also cap the third party cash transactions at Rs 25,000 per day

 

Breaking News -  Banks including HDFC Bank, ICICI Bank and Axis Bank today began charging a minimum amount of Rs 150 per transaction for cash deposits and withdrawals beyond four free transactions in a month.

The charges would apply to savings as well as salary accounts effective from today, leading private sector player HDFC Bank said in a circular.

The bank would also cap the third party cash transactions at Rs 25,000 per day, while cash handling charges would be withdrawn effective today, the circular added.

The move was seen in some quarters as aimed at discouraging cash transactions and furthering the digital payment drive.

Also Read: Free Withdrawal Days Are Over: ICICI, Axis, HDFC Bank Restore Cash Charges

For the basic no-frills accounts, maximum four cash withdrawals would continue to remain free and there would be no fees for cash deposits.

In case of ICICI Bank, the charges are same as they were before the demonetisation move announced on November 8, while there is an increase in such fees in case of some others.

According to details on ICICI Bank website, there will be no charge for first four transactions a month in home branch while Rs 5 per thousand rupees would be charged thereafter subject to a minimum of Rs 150 in the same month. (read more...)

ICICI Bank first Indian lender to execute Blockchain transaction

ICICI Bank has become the first Indian lender to complete a banking transaction using Blockchain technology. This remittance transaction has been completed in partnership with Emirates NBD, a lender from the West Asia.

India’s largest private sector lender has managed to authenticate remittance transaction messages as well as original international trade documents related to purchase order, invoice, shipping and insurance, etc electronically on Blockchain in real time. Blockchain technology simplifies the process and drastically reduces duration of the transaction to few minutes, compared with few days otherwise.

“I envision that the emerging technology of Blockchain will play a significant role in banking in the coming years by making complex bilateral and multi-lateral banking transactions seamless, quick and more secure,” said Chanda Kochhar, MD & CEO, ICICI Bank.

She said the bank will also look at expanding the Blockchain ecosystem and creating common working standards for commercial adoption of the technology.

Read Source

ICICI Prudential Life Insurance extends fall after listing below issue price

ICICI PRUDENTIAL LIFE INSURANCE COMPANY LTD

LIVE STOCK PRICE - CLICK HERE FOR MORE

ICICI Prudential Life Insurance has slipped to Rs 297, down 11% against its issue price of Rs 334 per share on the National Stock Exchange (NSE) in intra-day after weak listing. LINK

The stock listed at Rs 330, 1.2% lower against its issue price. It hit an intra-day high of Rs 333.90 post its listing.

At 12:45 pm, the stock was trading at Rs 301, with 64.64 million shares changing hands on the counter so far.

ICICI Prudential Life Insurance has raised Rs 6,057-crore through initial public offer (IPO), become the first insurer to list.

The company's public issue was oversubscribed 10.5 times. The quota set aside for qualified institutional buyers was subscribed 11.83 times while for the non-institutional investor category, it was 28.55 times. The retail portion was oversubscribed 1.42 times, the exchange data shows.

The insurer is a venture between banking major ICICI Bank and UK's Prudential Corporation Holdings. Singapore's Temasek and PremjiInvest are also the shareholders.

Read Source...

ICICI Prudential Life Insurance lists below issue price

ICICI PRUDENTIAL LIFE INSURANCE COMPANY LTD.

LIVE STOCK PRICE - CLICK HERE FOR MORE

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ICICI Prudential Life Insurance has listed at Rs 330, 1.2% below its issue price of Rs 334 per share, on the National Stock Exchange (NSE).

At 10:01 am, the stock was trading at Rs 331.60, after hitting a high of Rs 333.80 post its listing.

ICICI Prudential Life Insurance has raised Rs 6,057-crore through initial public offer (IPO), become the first insurer to list.

The company's public issue was oversubscribed 10.5 times. The quota set aside for qualified institutional buyers was subscribed 11.83 times while for the non-institutional investor category, it was 28.55 times. The retail portion was oversubscribed 1.42 times, the exchange data shows.

The insurer is a venture between banking major ICICI Bank and UK's Prudential Corporation Holdings. Singapore's Temasek and Premji Invest are also the shareholders...Read Source

ICICI Pru Life Insurance IPO: Should you invest?

The initial public offer (IPO) of the country’s largest insurer in the private sector, ICICI Prudential Life Insurance Corporation (I-Pru), opens today for subscription. On offer are 18.13 crore equity shares of Rs 10 each via book building route in price band of Rs 300-344/share.

According to reports, I-Pru had Rs 1.09 trillion worth of Assets under Management (AUM) as of June 30, 2016, making it one of the largest fund managers in India. Ahead of its IPO, it raised Rs 1,635 crore from anchor investors.

Here is a quick compilation of recommendations from leading brokerages on whether should you subscribe to the offer or not.

NOMURA

ICICI Prudential Life’s IPO price of Rs 300-334 per share implies a valuation of Rs 43,000-48,000 crore. On March-18 enterprise value (EV), this implies a valuation of 2.45-2.73 times which is a 20-30% discount to the multiple of HDFC+ Max Life combined.

Excluding excess capital (solvency at 200%), ICICI Pru Life’s EV multiple is 2.9-3.2 times March 2018 EV. This implies a 10-20% discount to the EV multiple for HDFC + Max combined. Our price target for ICICI Bank is Rs 285/share. Benchmarking ICICI Pru Life’s valuation to Rs 43,000 - 47,800 crore would imply 4-6% upside to our price target for ICICI Bank.

MOTILAL OSWAL RESEARCH

The company relies heavily on bancassurance and has tied up with ICICI Bank, Standard Chartered Bank and Capital Small Finance Bank for product distribution. Bancassurance accounted for over 58% of retail APE in FY16. We believe termination of one or more of these partnerships poses significant threats to the business over the medium-term.

That apart, over 80% of retail Annual premium equivalent (APE) for FY16 was in ULIPs. This makes the company prone to the cyclicality of the stock markets, as retail investors generally purchase ULIPs during stock market booms and vice-versa. This could impact new business premiums as well as margins. Additionally, the company has a low share of non-participating business, which is a  read full story

Related Stories:

 ICICI Pru: Good record, growth prospects

 Whatever we do, we do in an arm's-length relationship: Chanda Kochhar

 ICICI Pru Life IPO signals jump in valuations

 ICICI Pru Life files for India's biggest IPO in six years

ICICI Pru's Rs 6,000 crore IPO to open tomorrow

ICICI Prudential Life Insurance's IPO, worth up to Rs 6,057 crore and biggest for Indian markets in about six years, will hit the capital market on Monday (tomorrow).

The first public offer by an insurer in Indian market would open for bidding on September 19 and is scheduled to close on September 21, during which the stock would be offered in a price band of Rs 300-334 per share.

Ahead of the IPO, ICICI Prudential has allocated over 4.89 crore shares at Rs 334, the top-end of the price band, aggregating Rs 1,635.33 crore to a clutch of anchor investors from India and abroad.

It marks one of the biggest anchor investor placements in the Indian IPO market. Among the 40-odd anchor investors are Morgan Stanley, Goldman Sachs, Nomura, Government of Singapore, UTI MF, Russell Investment, GMO Emerging, SBI MF, Tata MF, HDFC Standard Life, Reliance, Birla Sun Life, Kotak Mahindra, IDFC,National Pension Service Managed By Oaktree Capital Management L P and The Boeing Company Employee Retirement Plans Master Trust.

The public offer comprises of up to 18,13,41,058 equity shares of ICICI Prudential Life Insurance Company, including a reservation of up to 1,81,34,105 equity shares(10% of the offer) for the shareholders of  read full story

Related Stories:

 ICICI Pru: Good record, growth prospects

 Whatever we do, we do in an arm's-length relationship: Chanda Kochhar

 ICICI Pru Life IPO signals jump in valuations

 ICICI Pru Life files for India's biggest IPO in six years

7 out of top 10 fund picks rise 17%

Seven out of top 10 stock picks by India’s equity fund managers have gained 17 per cent so far in 2016. This has helped equity schemes outperform the key indices. 

Notably, fund managers have not churned their top holdings in their schemes’ portfolios. They continued to have the same set of stocks on their top list, although the position of the stocks changed a bit.

HDFC Bank, Infosys, ICICI Bank, Larsen & Toubro (L&T), Axis Bank, State Bank of India (SBI), Maruti Suzuki, Reliance Industries, IndusInd Bank, and Sun Pharmaceuticals are the most-owned stocks by fund managers. These counters have cornered nearly Rs 1.05 lakh crore of the total assets of open-end equity schemes.

At a time when benchmark key indices have gained 9.3 per cent, a majority of the top stock picks have outperformed with a wide margin.

Axis Bank has emerged the biggest hit among the top holdings. The stock has gained a hefty 33.3 per cent in 2016. It was followed by IndusInd Bank (22.5 per cent), HDFC Bank (18.6 per cent) and  read more..