The biggest private sector lender ICICI Bank has plans to increase its operations globally and domestically including through organic route. The bank said that India’s banking space needs a major consolidation wave of mergers and acquisitions.
"The earlier the consolidation happens, better it would be, because of the scale build up and rationalization of technology and skill set it would give to the public sector banks," ICICI Bank's Managing Director and CEO K V Kamath told in an interview.
Kamath said, ICICI bank on its own part is looking to spread out its operations in domestic and overseas markets including through organic route and by increasing its presence in the existing markets.
"We are now in 18 countries and 22-23 per cent of our balance sheet is global assets. The intent is to further scale up our existing overseas operation than expanding the footprint," he noted.
"To go into another territory and build a grass-root business and competing with entrenched local players is not easy. That would be true of any country including the West where the scale is there."
On the question whether the fast-growing economy China was on its radar, Kamath said, "I can categorically say no. For me to assume that I can go into China and do business is not easy."
ICICI bank is the country’s most valued bank and is currently in process of unlocking value in at least six other subsidiaries starting with brokerage arm, the chief of ICICI Bank, ICICI Securities said their current strategy is to grow the business organically.
On Saturday the bank’s board approved a proposal to dilute the stake in I-Sec through an IPO as well as a pre-IPO private placement.
Monday, January 21, 2008
Friday, January 18, 2008
ICICI bank aim to be at the top in Sri Lanka
The ICICI bank, which is the largest private bank in India, is working to become the top foreign bank in Sri Lanka. The bank is the third biggest foreign bank in Sri Lanka. Prem Kumar Thampi, ICICI Sri Lanka country chief told the press in the next four to five years in the country the Bank is targeting a balance sheet of over $1 billion.
“We started our bank in Sri Lanka with $25 million and today we are the third biggest in the Island country with $280 million,” Thampi said.
ICICI, as part of its expansion plans, is also working with the Securities and Exchange Commission.
“This year, other than branch expansion work, we are working with the Central Bank to introduce a Commodity Exchange Centre for commodities,” Thampi said.
The bank has started several schemes to attract more customers in the island country. The bank is giving a special offer of sanctioning loans within two days and the offer of early settlement of loans with a 100% interest rebate and minimal foreclosure charges.
ICICI bank is positioned at the second amongst the Indian bank sector and is the largest private sector bank with over 50 years of presence in financial services and with assets of Rs3,649.44 billion (about $92.16 billion) as on September 30, 2007.
“We started our bank in Sri Lanka with $25 million and today we are the third biggest in the Island country with $280 million,” Thampi said.
ICICI, as part of its expansion plans, is also working with the Securities and Exchange Commission.
“This year, other than branch expansion work, we are working with the Central Bank to introduce a Commodity Exchange Centre for commodities,” Thampi said.
The bank has started several schemes to attract more customers in the island country. The bank is giving a special offer of sanctioning loans within two days and the offer of early settlement of loans with a 100% interest rebate and minimal foreclosure charges.
ICICI bank is positioned at the second amongst the Indian bank sector and is the largest private sector bank with over 50 years of presence in financial services and with assets of Rs3,649.44 billion (about $92.16 billion) as on September 30, 2007.
Tuesday, January 15, 2008
Sangli bank customers get upgraded products and services from ICICI bank
Sangli bank has merged with ICICI Bank, the country's most valued lender amongst the private sector banks. The bank will be providing its upgraded products and services to Sangli Bank customers following a merger.
ICICI Bank said in an advertisement the upgraded products and services will be provided at selected Sangli Bank branches. ICICI bank has asked the Savings Bank-account holders of Sangli Bank to update their accounts by filling up a 'Product Upgrade Form' by March 20.
"If the bank accounts are not upgraded by the customer, it will automatically get converted to 'ICICI Bank No Frills' Savings account," ICICI Bank said.
Before in April 2007, the Reserve Bank of India had permitted the merger of Sangli Bank with the country's largest private sector lender - ICICI Bank - after that all the branches of Sangli Bank started operating as ICICI Bank.
After completing of all-stock merger of the Maharashtra-based bank with the ICICI Bank, the country's biggest lender and blue-chip stock wanted to control on Sangli Bank's network of over 190 branches and existing customer base across urban and rural centers.
Shares of ICICI Bank were trading at Rs 1,419, down 1.45 per cent in the afternoon trading session on the Bombay Stock Exchange.
ICICI Bank said in an advertisement the upgraded products and services will be provided at selected Sangli Bank branches. ICICI bank has asked the Savings Bank-account holders of Sangli Bank to update their accounts by filling up a 'Product Upgrade Form' by March 20.
"If the bank accounts are not upgraded by the customer, it will automatically get converted to 'ICICI Bank No Frills' Savings account," ICICI Bank said.
Before in April 2007, the Reserve Bank of India had permitted the merger of Sangli Bank with the country's largest private sector lender - ICICI Bank - after that all the branches of Sangli Bank started operating as ICICI Bank.
After completing of all-stock merger of the Maharashtra-based bank with the ICICI Bank, the country's biggest lender and blue-chip stock wanted to control on Sangli Bank's network of over 190 branches and existing customer base across urban and rural centers.
Shares of ICICI Bank were trading at Rs 1,419, down 1.45 per cent in the afternoon trading session on the Bombay Stock Exchange.
Monday, January 14, 2008
During 2008-09 ICICI might cut home loan rates
In the coming months the country’s home loan consumers in India might get good news as the biggest private lender ICICI bank said that it can cut interest rates in the first quarter of next fiscal. ICICI Bank’s MD and CEO KV Kamath told that the lower rates will not only be for new customers but the existing floating-rate clients will also get benefit.
"We expect the rates to drop in Q1. After that we will see if we can write down the rates," he said when asked if ICICI Bank would cut housing loan rates. ICICI is also looking to start risk-based pricing, under which it would start offering lower rates to consumers with better creditworthiness, in about two years, he said.
Therefore, any rate cut for consumers, who have had to spool under a number of interest rate hikes in the current fiscal, will depend on benchmark interest rate trends developing over the coming months.
Any decision on the possibility of interest rates firming up in the near future, the ICICI bank chief said, “I do not foresee an immediate increase in home loan rates. To me that is a good news. At least, you are able to contain the rates.”
"We expect the rates to drop in Q1. After that we will see if we can write down the rates," he said when asked if ICICI Bank would cut housing loan rates. ICICI is also looking to start risk-based pricing, under which it would start offering lower rates to consumers with better creditworthiness, in about two years, he said.
Therefore, any rate cut for consumers, who have had to spool under a number of interest rate hikes in the current fiscal, will depend on benchmark interest rate trends developing over the coming months.
Any decision on the possibility of interest rates firming up in the near future, the ICICI bank chief said, “I do not foresee an immediate increase in home loan rates. To me that is a good news. At least, you are able to contain the rates.”
Saturday, January 12, 2008
ICICI bank customers get mobile banking facility
ICICI bank has started mobile banking services for its customers in a budge to take the frontiers of banking transactions beyond the ATM and internet, full-fledged banking transactions through mobile phone.
In the past few years customers have moved from branch banking to a host of non-branch channels like ATMs, call centre and internet banking.
Before, the customers used to get all information like balance in the account and mobile alerts through mobile phones. But now with the starting of mobile banking service customer will be able to replicate all transactions through mobile similar to an internet banking transaction.
In ICICI Bank around 55% of the transactions is done through ATMs, 22% through the internet, 12% through call centre and the remaining through branches. Previously, around five years ago, transactions through internet banking was very little about 2%.
Now with the new platform iMobile, all internet banking transactions can be done on mobile phones. Customers will be able to transfer funds to ICICI Bank and non-ICICI Bank accounts, pay their utility bills and insurance premium and do a host of other operations. The application include savings accounts, demat, credit card and loan accounts.
ICICI Bank ED V Vaidyanathan said, the new service will help to give more power to the customer. They will now be able to transact from practically anywhere. He is anticipating seeing the transactions of over 40% over a period of time with the use of new services.
The customers having mobile with GPRS and non-GPRS facility will be able to use the service. Customers will be required to enter four-digit PIN to enter the mobile banking application, which will prevent unauthorized use of the service.
At present there are about 13 million ICICI Bank customers, out of which, there are 2.5-million active customers. It is also having 7-million registered customers for SMS alerts. The bank currently sends around 20 million alerts a month.
Citi and HSBC banks are giving this service in other parts of the world. Some of these banks are planning to launch these services here. Till now, mobile banking services, which were provided by banks, have been SMS-enabled.
While, these were push-services like SMS alerts and balance enquiries. There has been security concern with the introduction of such services since the SMS route, through which the information travels, is totally unsecured.
Aditya Menon, Chief IT officer of Obopay India — a mobile payments solutions company — said there are many banks who have been working on a mobile-payment solution. Obopay is having talks with six other banks to provide a service that will enable bank customers to transfer funds to anyone who has a mobile phone and a bank account. Indeed, banks like Corporation Bank and Union Bank of India also have similar products in the pipeline.
In the past few years customers have moved from branch banking to a host of non-branch channels like ATMs, call centre and internet banking.
Before, the customers used to get all information like balance in the account and mobile alerts through mobile phones. But now with the starting of mobile banking service customer will be able to replicate all transactions through mobile similar to an internet banking transaction.
In ICICI Bank around 55% of the transactions is done through ATMs, 22% through the internet, 12% through call centre and the remaining through branches. Previously, around five years ago, transactions through internet banking was very little about 2%.
Now with the new platform iMobile, all internet banking transactions can be done on mobile phones. Customers will be able to transfer funds to ICICI Bank and non-ICICI Bank accounts, pay their utility bills and insurance premium and do a host of other operations. The application include savings accounts, demat, credit card and loan accounts.
ICICI Bank ED V Vaidyanathan said, the new service will help to give more power to the customer. They will now be able to transact from practically anywhere. He is anticipating seeing the transactions of over 40% over a period of time with the use of new services.
The customers having mobile with GPRS and non-GPRS facility will be able to use the service. Customers will be required to enter four-digit PIN to enter the mobile banking application, which will prevent unauthorized use of the service.
At present there are about 13 million ICICI Bank customers, out of which, there are 2.5-million active customers. It is also having 7-million registered customers for SMS alerts. The bank currently sends around 20 million alerts a month.
Citi and HSBC banks are giving this service in other parts of the world. Some of these banks are planning to launch these services here. Till now, mobile banking services, which were provided by banks, have been SMS-enabled.
While, these were push-services like SMS alerts and balance enquiries. There has been security concern with the introduction of such services since the SMS route, through which the information travels, is totally unsecured.
Aditya Menon, Chief IT officer of Obopay India — a mobile payments solutions company — said there are many banks who have been working on a mobile-payment solution. Obopay is having talks with six other banks to provide a service that will enable bank customers to transfer funds to anyone who has a mobile phone and a bank account. Indeed, banks like Corporation Bank and Union Bank of India also have similar products in the pipeline.
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