· Retail loans mainly comprise of three segments—consumer, mortgage and agri loans
· Consumer loans to grow by 33% to over Rs. 5,100 crore in FY’20
· Mortgage loan disbursement is likely to rise by 30% to over Rs. 5,300 crore in this fiscal
· The Bank will also grow its disbursement of agriculture related loans by 28% to Rs. 3,300 crore
Mangaluru: ICICI Bank announced today that it aims to grow its retail loan disbursement in Karnataka by 30% year-on-year to Rs. 13,700 crore in FY’20. All segments of retail loans such as consumer loan, mortgages and agriculture related loans are set to grow at a rapid pace in the state this financial year.
The Bank aims to achieve this growth by expanding growing consumer loans disbursement, which comprises of personal and auto loans, by 33% to over Rs. 5,100 crore, alongside the disbursement of agriculture related loans by 28% to Rs. 3,300 crore compared to FY19. Mortgage loan disbursement too is likely to rise by 30% to over Rs. 5,300 crore in FY20, compared to FY19.
“Retail consumer loans have witnessed significant growth in Karnataka over the last few years. There has been a robust growth in the economy of the state and we see the potential of increasing the retail loan disbursement in the state nearly 30% to Rs. 13,700 crore in FY’20. We are focusing on personal, auto, home loans and agri loans to grow in the state”, said Mr. Anup Bagchi, Executive Director, ICICI Bank.
“A significant driver of this growth is our technology led instantaneous loan offerings to our customers and make our products available in the tier II and tier III towns. Armed with our technological prowess, we now offer home loans, auto loans and personal loans to pre-approved customers instantaneously through our digital channels“, added Mr Bagchi.
Within the consumer loans portfolio, personal and auto loan are witnessing an upswing across Karnataka. On personal loans, Mr. Bagchi said that the Bank has been receiving an encouraging response for its instant offering, called ‘Insta PL’. “Through this facility, our pre-approved customers can apply for a personal loan and get money upto Rs. 15 lakh in their account immediately. Additionally, we have seen good uptick in tier II towns/districts like Hubli, Belgaum, Kolar, Gulbarga, Raichur, Davangere, Shivamogga and Mangaluru for personal loans from both salaried as well as self-employed individuals. Further, within the personal loans portfolio, we are also witnessing significant traction in business loans from the self-employed segment as they prefer short-term access to credit. Hence, we have developed a full-fledged product suit of ‘Business Instalment Loans’ to provide tailor made solutions for every self-employed individual, wherein credit decisions are mainly based upon their banking habits like sales turnover, home or auto loan repayment, GST returns among others.”
On auto loans, he added, “We have recently introduced pre-approved ‘Insta Auto Loan’, to empower millions of our customers with final sanction letters for car loans instantly, in a fully digital manner upto Rs. 20 lakh for a tenure of upto seven years. The demand for auto loans in tier II and III towns has been growing rapidly. Our focus will be to tap potential in cities like Mysuru, Mangaluru, Udupi, Dharwad-Hubli, Tumakuru and Belgaum.”
Within the mortgage portfolio, the focus is to drive growth in the affordable housing segment category, through the Pradhan Mantri Awas Yojana (PMAY). The Bank is also rapidly expanding its home loan propositions to upcoming towns like Mysuru, Mangaluru, Hubli etc.
Mr. Bagchi added, “We plan to increase our mortgage loan disbursement in Karnataka by 30% to over Rs. 5,300 crore in FY’20. To drive this growth, we have adopted a multi-pronged strategy with a focus on affordable housing segment, driving penetration of insta home loans and top up loans as well as our emphasis on home loans for self-employed segment. We have recently launched the industry’s first facility to get instant home loan approval upto Rs 1 crore digitally. This technology led initiative is available to lakhs of our pre-approved customers and is a key part of our growth strategy.”
About the Bank’s network in the state and initiatives on empowering rural areas:
ICICI Bank has a wide retail network of branches across Karnataka.
“We are committed to service the semi-urban and rural markets in the state. There are 294 branches and 1,283 ATMs in Karnataka. Our wide network in the state is a testimony of our focus to service a wide segment of customers”, said Mr. Bagchi.
The Bank is the largest lender among private sector banks to Self Help Groups (SHG) in Karnataka. The Bank has disbursed loans to over 39,700 SHGs and nearly 5 lakh women benefitted from this programme across Karnataka. The cumulative financial assistance pegged at Rs. 965 crore. By end of FY’20, the Bank intends to reach the milestone of supporting 50,000 SHG’s and positively impacting nearly 6 lakh women beneficiaries with a cumulative loan disbursement of Rs. 1,100 crore. The Bank has been adjudged as the number one private sector commercial bank by NABARD for three consecutive years for its good work in the SHG segment.
ICICI Group has also been actively involved in imparting free-of-cost vocational training to the underprivileged youth in the state of Karnataka through the ICICI Academy for Skills. The academy has two centres in Karnataka at Bengaluru and Mysuru and has imparted vocational training to over 8,000 underprivileged youth in the state. By end of FY’20, it would train nearly 8,500 youth with skills for leading a sustainable livelihood.
The academy at Bengaluru aims to provide training to the underprivileged youth in two skills - Office Administration and Retail Sales. The academy at Mysuru caters to women trainees and provides training in Office Administration.
ICICI Manipal Academy for Banking & Insurance is a joint venture of ICICI Bank and Manipal Global Education Services Pvt Ltd. The Probationary Officers’ (PO) Programme aims to create a pool of bankers and provide inclusive employment opportunities for bright and capable young graduates across social and economic strata through equipping them with appropriate banking knowledge and skills. A large number of probationary officers have passed out of this institute and they are successfully servicing the nation. Most of them are associated with our Bank. They are even working with other banks as well.