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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