ICICI Bank branch has been opened in Frankfurt by the ICICI Bank UK, a wholly owned subsidiary of ICICI Bank.
The branch is a member of the Association of German Banks. The branch will mainly focus on serving corporate businesses with significant Germany-India linkages.
ICICI Bank UK also launched a call money account product, HiZins, with an interest rate of 4.75 per cent.
A call money account will be a no-frills savings account with a facility of withdrawals on a daily basis and no restrictions on the amount that can be deposited. The customers will be provided services through a call centre that will be located in Germany.
On February 29 the bank will also be opening its New York Branch at the New York Stock Exchange. G V S Ramesh has been appointed the chief representative of the New York office.
K V Kamath, managing director and CEO, ICICI Bank, said, “Germany is the biggest economy in Europe and marks a critical step in ICICI Bank’s international expansion strategy. We are naturally positioned to service the trade and business needs of companies with linkages between Germany and India.”
Currently ICICI Bank’s presence extends across 19 countries, including Germany.
Sonjoy Chatterjee, ICICI Bank executive director corporate and international banking, said, “After the success of our consumer business in the UK, we are entering the German market with what we believe is a compelling customer savings product.
“We will leverage our corporate advisory and financing capabilities to facilitate Indian investment into Germany and vice versa.”
Thursday, February 28, 2008
ICICI Bank to open its first branch in New York
ICICI Bank, India’s largest private sector bank, will be opening its first branch in the US, in New York, on Friday.
K.V. Kamath, managing director and chief executive officer, and Sonjoy Chatterjee, executive director of the bank, will be present at the opening ceremony of the branch.
The bank is listed at the New York Stock Exchange on the occasion, Kamath will be ringing the closing bell at the New York Stock Exchange.
Previously ICICI Bank had opened its representative office in New York. Last year in October the bank got approval from the US Federal Reserve to convert its representative office in New York to a full-fledged branch. The branch will be offering services in wholesale banking business, including trade financing and factoring services to US-based subsidiaries of Indian firms.
Mumbai-based ICICI Bank has consolidated total assets of about $115 billion (Rs.4,589.5 billion) as of Dec 31, 2007, and a market capitalization of over $30 billion.
The bank’s international presence currently extends to 19 countries and includes three wholly owned subsidiaries in Britain, Russia and Canada, offshore banking unit in Singapore, an advisory branch in Dubai International Finance Centre, branches in Bahrain, Sri Lanka, Hong Kong, Belgium, Qatar, Germany and representative offices in China, UAE, Bangladesh, South Africa, Indonesia, Thailand and Malaysia.
K.V. Kamath, managing director and chief executive officer, and Sonjoy Chatterjee, executive director of the bank, will be present at the opening ceremony of the branch.
The bank is listed at the New York Stock Exchange on the occasion, Kamath will be ringing the closing bell at the New York Stock Exchange.
Previously ICICI Bank had opened its representative office in New York. Last year in October the bank got approval from the US Federal Reserve to convert its representative office in New York to a full-fledged branch. The branch will be offering services in wholesale banking business, including trade financing and factoring services to US-based subsidiaries of Indian firms.
Mumbai-based ICICI Bank has consolidated total assets of about $115 billion (Rs.4,589.5 billion) as of Dec 31, 2007, and a market capitalization of over $30 billion.
The bank’s international presence currently extends to 19 countries and includes three wholly owned subsidiaries in Britain, Russia and Canada, offshore banking unit in Singapore, an advisory branch in Dubai International Finance Centre, branches in Bahrain, Sri Lanka, Hong Kong, Belgium, Qatar, Germany and representative offices in China, UAE, Bangladesh, South Africa, Indonesia, Thailand and Malaysia.
Wednesday, February 20, 2008
ICICI cough up a portion of their non-performing home loans to Arcil
Few of the leading private sector banks have starting taking steps to shell out a portion of their non-performing home loans to the Asset Reconstruction Company (India) Ltd (Arcil).
Arcil is the country's leading accumulation of distressed industrial assets.
According to industry sources ICICI Bank recently had set the trend by selling a bunch of non-performing home loans to Arcil.
Kotak Mahindra Bank and Standard Chartered are also supposed to have followed ICICI by doing similar deals with Arcil. But this could not be verified by DNA Money.
Rajiv Sabharwal, head of retail assets at ICICI Bank has confirmed that ICICI Bank had recently made a deal with Arcil that involves a sale transaction to see bad home loans to Arcil.
"We did this in the last quarter," Sabharwal said.
According to sources ICICI offloaded receivables worth Rs 1,000 crore, but Sabharwal said the number was around Rs 400 crore in the last quarter.
He added the securitized portfolio includes a mix of home loans and other personal loans,
ICICI Bank is the first one in the industry to deal to bundle bad home loans in Arcil's favor.
It is for the first time Arcil's is entering into retail space.
On April 4, 2007, S Khasnobis, managing director and CEO of Arcil, told DNA Money about its plan to speculate into troubled retail home loans market by buying out securities from banks.
Thus far, the asset reconstruction firm has stuck to troubled assets from the corporate sector.
ICICI a belligerent bank has been a pioneer in securitization of loans. "We do play in this segment. We have been securitising both good and bad assets," Sabharwal said. Arcil plans to create a special purpose vehicle to handle mortgage backed securities.
In his last interview, Khasnobis had said the initial investment would be to 'test the markets.' Arcil will create its own "fair debt collection norm and formalize a list of dos and don'ts." This is mainly because a clear policy on bad home loans has yet to be drafted by the regulators.
Arcil is likely to use the skills from its stock up as an asset reconstruction firm to turn bad assets into good. Its new medium in the distressed home loan market will use "compensation" as a prime motif to recover assets. Arcil can provide "temporary cheaper homes" to the borrowers to deluge over the bad times. It will help in discouraging practices such as putting pressure on borrowers. However, ICICI will still manage the securities such as collecting interest and handing it over to Arcil for a small fee. "At a future date when Arcil is ready, we will handover the management of the bad home loans to it," said Sabharwal.
Arcil is the country's leading accumulation of distressed industrial assets.
According to industry sources ICICI Bank recently had set the trend by selling a bunch of non-performing home loans to Arcil.
Kotak Mahindra Bank and Standard Chartered are also supposed to have followed ICICI by doing similar deals with Arcil. But this could not be verified by DNA Money.
Rajiv Sabharwal, head of retail assets at ICICI Bank has confirmed that ICICI Bank had recently made a deal with Arcil that involves a sale transaction to see bad home loans to Arcil.
"We did this in the last quarter," Sabharwal said.
According to sources ICICI offloaded receivables worth Rs 1,000 crore, but Sabharwal said the number was around Rs 400 crore in the last quarter.
He added the securitized portfolio includes a mix of home loans and other personal loans,
ICICI Bank is the first one in the industry to deal to bundle bad home loans in Arcil's favor.
It is for the first time Arcil's is entering into retail space.
On April 4, 2007, S Khasnobis, managing director and CEO of Arcil, told DNA Money about its plan to speculate into troubled retail home loans market by buying out securities from banks.
Thus far, the asset reconstruction firm has stuck to troubled assets from the corporate sector.
ICICI a belligerent bank has been a pioneer in securitization of loans. "We do play in this segment. We have been securitising both good and bad assets," Sabharwal said. Arcil plans to create a special purpose vehicle to handle mortgage backed securities.
In his last interview, Khasnobis had said the initial investment would be to 'test the markets.' Arcil will create its own "fair debt collection norm and formalize a list of dos and don'ts." This is mainly because a clear policy on bad home loans has yet to be drafted by the regulators.
Arcil is likely to use the skills from its stock up as an asset reconstruction firm to turn bad assets into good. Its new medium in the distressed home loan market will use "compensation" as a prime motif to recover assets. Arcil can provide "temporary cheaper homes" to the borrowers to deluge over the bad times. It will help in discouraging practices such as putting pressure on borrowers. However, ICICI will still manage the securities such as collecting interest and handing it over to Arcil for a small fee. "At a future date when Arcil is ready, we will handover the management of the bad home loans to it," said Sabharwal.
Tuesday, February 12, 2008
ICICI Bank to sell its small-ticket personal loans portfolio to foreign banks
ICICI Bank is selling its small-ticket personal loans (STPL) portfolio to the foreign banks. The bank is having discussions with a couple of foreign banks for this. It is has been learnt that ICICI bank as approached foreign banks such as Deutsche Bank, Standard Chartered and Barclays for selling the portfolio. The bank has decided to exit this ‘high-risk’ space a couple of months ago owing to the rising defaults in the segment.
At present, ICICI’s collection agency is looking after the portfolio until it finds a suitable buyer. According to the sources this step taken up by the bank will help in moderating the losses on the portfolio. The bank’s total STPL portfolio size is expected to be around Rs 3,000 crore, of which the bank aims to sell Rs 2,000 crore, sources added.
When the reporter of ET inquired about this from ICICI officials, they declined to comment. However, a senior official in the bank said on condition of secrecy, “The purpose of these loans was not clear and we had to deal with a high default rate. If we get suitable proposals for the portfolio, we will surely consider it.” ICICI Bank is also taking in consideration credit-scoring methods for appraising borrowers at present.
The official said bank is aiming heavily on micro financing where the loans offered are picked up for a clear developmental purpose. By get hold of the portfolio, new entrants in the retail banking space would be able to secure a foothold in the market. Sources added almost 70% customers in the portfolio will be good customers and this will enable the player to sell other products to the same customers.
ICICI Bank got into this segment a couple of years ago offering small-ticket loans of around Rs 10,000-30,000. According to sources rise in number of defaulters have forced the bank to tighten its credit filters. In actual, sources told ET that the loss rate on the STPL portfolio is around 20-25%. Several banks are getting more cautious with lending to low-income earners in urban areas. Industry sources say new entrants in this segment will be keen to pick up the portfolio to gain a foothold in the market.
Interest rates on STPL were as high as 48% which were later brought down due to RBI intervention to 18-25% last year. Banks are now aiming on medium ticket personal loan (MTPL), enhancing the ticket size from a minimum of Rs 10,000-20,000 to a maximum of Rs 5 lakh for salaried individuals. Interest rates on these loans are similar to that of credit cards at 24-30%. Industry sources said the credit worthiness of customers in the MTPL bracket would be more sound as compared to the low-income group strata which records marginal.
At present, ICICI’s collection agency is looking after the portfolio until it finds a suitable buyer. According to the sources this step taken up by the bank will help in moderating the losses on the portfolio. The bank’s total STPL portfolio size is expected to be around Rs 3,000 crore, of which the bank aims to sell Rs 2,000 crore, sources added.
When the reporter of ET inquired about this from ICICI officials, they declined to comment. However, a senior official in the bank said on condition of secrecy, “The purpose of these loans was not clear and we had to deal with a high default rate. If we get suitable proposals for the portfolio, we will surely consider it.” ICICI Bank is also taking in consideration credit-scoring methods for appraising borrowers at present.
The official said bank is aiming heavily on micro financing where the loans offered are picked up for a clear developmental purpose. By get hold of the portfolio, new entrants in the retail banking space would be able to secure a foothold in the market. Sources added almost 70% customers in the portfolio will be good customers and this will enable the player to sell other products to the same customers.
ICICI Bank got into this segment a couple of years ago offering small-ticket loans of around Rs 10,000-30,000. According to sources rise in number of defaulters have forced the bank to tighten its credit filters. In actual, sources told ET that the loss rate on the STPL portfolio is around 20-25%. Several banks are getting more cautious with lending to low-income earners in urban areas. Industry sources say new entrants in this segment will be keen to pick up the portfolio to gain a foothold in the market.
Interest rates on STPL were as high as 48% which were later brought down due to RBI intervention to 18-25% last year. Banks are now aiming on medium ticket personal loan (MTPL), enhancing the ticket size from a minimum of Rs 10,000-20,000 to a maximum of Rs 5 lakh for salaried individuals. Interest rates on these loans are similar to that of credit cards at 24-30%. Industry sources said the credit worthiness of customers in the MTPL bracket would be more sound as compared to the low-income group strata which records marginal.
Saturday, February 9, 2008
ICICI Bank fined by Delhi Consumer Commission for denying credit card to a lawyer
ICICI Bank again has been fined by the Delhi Consumer Commission of Rs 10-lakh and this time for not issuing credit card to a lawyer for a "negative profile" profession.
But the bank denied the charge that it was not giving credit cards to advocates and said it will appeal against order before an appropriate forum.
The Commission has ordered the bank to deposit Rs 10 lakh in the State Consumer Welfare Fund, and pay Rs 50,000 as compensation to the complainant.
The Commission, presided over by Justice J D Kapoor in a strongly-worded order, restrained all other financial institutions from rejecting consumers' applications on the premise that their occupations fell under "negative profiles".
Condemning ICICI for not following the guidelines laid down by the Reserve Bank regarding financial credits, the Commission said that the lender could not be allowed to "defame and demean" any profession in general and the legal fraternity in particular.
After the order, an ICICI Bank spokesperson said in a statement that it has denied that it was not giving credit cards to advocates and submitted a list of advocates holding ICICI Bank Credit Cards.
"The bank would prefer an appeal before an appropriate forum. The bank had filed a reply taking a preliminary objection stating that the complainant is not a consumer of the bank, as provided for in the Consumer Protection Act," the spokesperson said.
"There is no service provided, therefore, the question of deficiency of service does not arise and the complainant does not fall within the purview of Consumer Protection Act," the bank added.
But the bank denied the charge that it was not giving credit cards to advocates and said it will appeal against order before an appropriate forum.
The Commission has ordered the bank to deposit Rs 10 lakh in the State Consumer Welfare Fund, and pay Rs 50,000 as compensation to the complainant.
The Commission, presided over by Justice J D Kapoor in a strongly-worded order, restrained all other financial institutions from rejecting consumers' applications on the premise that their occupations fell under "negative profiles".
Condemning ICICI for not following the guidelines laid down by the Reserve Bank regarding financial credits, the Commission said that the lender could not be allowed to "defame and demean" any profession in general and the legal fraternity in particular.
After the order, an ICICI Bank spokesperson said in a statement that it has denied that it was not giving credit cards to advocates and submitted a list of advocates holding ICICI Bank Credit Cards.
"The bank would prefer an appeal before an appropriate forum. The bank had filed a reply taking a preliminary objection stating that the complainant is not a consumer of the bank, as provided for in the Consumer Protection Act," the spokesperson said.
"There is no service provided, therefore, the question of deficiency of service does not arise and the complainant does not fall within the purview of Consumer Protection Act," the bank added.
Thursday, February 7, 2008
ICICI Bank penalized by Delhi Consumer Forum for issuing two outdated cheques
The ICICI Bank has been fined by the Delhi Consumer Forum for issuing two outdated cheques.
A fine of Rs 5,000 has been imposed on the ICICI Bank in Connaught Place, in Nov. 26 last year by the Consumer Dispute Redressal Forum in Sheikh Sarai, south Delhi. The representatives of the ICICI Bank had failed to appear before the Delhi consumer forum on two consecutive dates on a complaint from a consumer.
The bank issued two cheques of Rs 4,000 and Rs 1,000 Dec 12 with a validity of one month. But the cheques were submitted only on Jan 24 this year, 12 days after they had expired.
Taking serious note of the matter, on Tuesday the forum has decided to bring the matter to the notice of the Reserve Bank of India (RBI).
The forum has also passed orders to the manager of the Connaught Place branch to appear before it on the next hearing Feb 19 and explain why "out-dated" cheques were issued.
"It may be noted that if the bank manager does not appear on the next date, the forum shall take action against him," the order said.
A case has been filed before the forum by the complainant Sushil Kumari, who alleged that the bank sanctioned her loan for Rs 100,000 but was taking a monthly installment for Rs 150,000 loan. She had requested for Rs 150,000 loan, which the bank had refused. The bank later deposited Rs 40,917 in her account without informing her.
Kumari wanted the forum to direct ICICI Bank to deposit the remaining sum of Rs 9,000.
Last year in November last year, the bank had been fined by the Delhi Consumer Forum for employing goons for recovery of a Rs 550,000 loan and injuring a customer.
A fine of Rs 5,000 has been imposed on the ICICI Bank in Connaught Place, in Nov. 26 last year by the Consumer Dispute Redressal Forum in Sheikh Sarai, south Delhi. The representatives of the ICICI Bank had failed to appear before the Delhi consumer forum on two consecutive dates on a complaint from a consumer.
The bank issued two cheques of Rs 4,000 and Rs 1,000 Dec 12 with a validity of one month. But the cheques were submitted only on Jan 24 this year, 12 days after they had expired.
Taking serious note of the matter, on Tuesday the forum has decided to bring the matter to the notice of the Reserve Bank of India (RBI).
The forum has also passed orders to the manager of the Connaught Place branch to appear before it on the next hearing Feb 19 and explain why "out-dated" cheques were issued.
"It may be noted that if the bank manager does not appear on the next date, the forum shall take action against him," the order said.
A case has been filed before the forum by the complainant Sushil Kumari, who alleged that the bank sanctioned her loan for Rs 100,000 but was taking a monthly installment for Rs 150,000 loan. She had requested for Rs 150,000 loan, which the bank had refused. The bank later deposited Rs 40,917 in her account without informing her.
Kumari wanted the forum to direct ICICI Bank to deposit the remaining sum of Rs 9,000.
Last year in November last year, the bank had been fined by the Delhi Consumer Forum for employing goons for recovery of a Rs 550,000 loan and injuring a customer.
Tuesday, February 5, 2008
ICICI Bank stopped EFT other banks may follow suit
The Reserve Bank of India issued a circular dated January 8 on discontinuation of Electronic Funds Transfer (EFT) a possible misinterpretation of the circular, as a result ICICI bank asked its customers to switch over to other modes of payments.
In case you have given instructions to your bank for payments through Electronic Funds Transfer (EFT), it is better to check the status. From February 1, ICICI Bank has already stopped EFT and there could be other banks following suit.
A message to this effect on the bank’s portal created confusion among a large number of customers as sudden stoppage of payments could mean serious trouble.
“The RBI circular, addressed to all member banks of Brihan Mumbai bankers’ clearing house, says that the EFT system for transfer of funds to customers could be used up to January 31. “We acted on this,” an ICICI official told Business Line from Mumbai.
On the other hand, there is no clarity among the ICICI officials whether the RBI’s directive is applicable to non-Mumbai centers also. The directive issued by the bank also did not indicate withdrawal of EFT from February 1 in categorical terms.
When contacted the second largest private sector bank HDFC Bank official in Mumbai denied receiving any circular on EFT. The official explained a sudden stoppage of EFT will cause problem to a customer as some banks are still not part of National Electronic Funds Transfer (NEFT), though RBI wants to promote it in place of EFT.
Whereas RBI spokesperson said EFT is “very much in use.”
In case you have given instructions to your bank for payments through Electronic Funds Transfer (EFT), it is better to check the status. From February 1, ICICI Bank has already stopped EFT and there could be other banks following suit.
A message to this effect on the bank’s portal created confusion among a large number of customers as sudden stoppage of payments could mean serious trouble.
“The RBI circular, addressed to all member banks of Brihan Mumbai bankers’ clearing house, says that the EFT system for transfer of funds to customers could be used up to January 31. “We acted on this,” an ICICI official told Business Line from Mumbai.
On the other hand, there is no clarity among the ICICI officials whether the RBI’s directive is applicable to non-Mumbai centers also. The directive issued by the bank also did not indicate withdrawal of EFT from February 1 in categorical terms.
When contacted the second largest private sector bank HDFC Bank official in Mumbai denied receiving any circular on EFT. The official explained a sudden stoppage of EFT will cause problem to a customer as some banks are still not part of National Electronic Funds Transfer (NEFT), though RBI wants to promote it in place of EFT.
Whereas RBI spokesperson said EFT is “very much in use.”
ICICI bank to keep low risk priority lending and gives big financing to HFC
ICICI Bank, the country’s second largest mortgage lender, is making plan to split its home loan business between the bank and its wholly owned subsidiary, ICICI Home Finance Company.
According to the plan the bank will be financing home loans only up to Rs 20 lakh, which qualify as priority sector lending. Home loans above Rs 20 lakh will be offered by ICICI Home Finance.
“ICICI Bank will focus on home loans with a ticket size of Rs 20 lakh, which qualifies as priority sector loans. The bank will keep the priority sector loan business with itself. Large ticket-size loans will be booked by ICICI Home Finance,’’ said Rajiv Sabharwal, senior general manager, ICICI Bank.
Housing loans up to Rs 20 lakh have a lower risk weight of 50 % for capital allocation purpose. Banks have to direct 40 % of their loans towards priority sector, including agriculture and small-scale industries. While larger ticket-size loans carry a higher risk weight of 75 %.
Recently RBI has approved banks home finance company. Following this, the bank has invested Rs 500 crore in the company, taking the net worth of the company to Rs 800 crore at the end of December 2007.
ICICI Bank private sector bank is moving ahead of creating a separate subsidiary for home finance, while public sector banks such as State Bank of India, Canara Bank and Punjab National Bank are considering merging their subsidiaries with themselves.
The biggest challenge for banks is to raise long-term finance. The home finance company will have search different sources of capital, which can be diversified and long term in nature. The home finance company will also be setting up branches in convenient locations, said Sabharwal.
The average home loan ticket size is around Rs 10 lakh. While Housing loans up to Rs 20 lakh form about 60 % of the banks’ mortgage portfolio.
At the end of March 31,2007 the total assets of the housing finance company stood at Rs 4,610.78 crore. In the third quarter of 2007-08, the home finance company gave out less than Rs 1,000 crore of home loans.
At the end of December 2007 ICICI Bank’s home loan volume grew by 12 % year-on-year to around Rs 60,000 crore. If the payment done at the end of the quarter in the home finance company were to be included, the growth in the home loan portfolio would be around 13-14 %.
This is a deceleration from the eminent levels of 40 % year-on-year growth which the bank had accounted in its mortgage lending portfolio in the previous year.
Housing finance companies are required to maintain a capital adequacy ratio of 12 %. Moreover, while banks have to keep aside Rs 32.5 of every Rs 100 raised to meet cash reserve ratio and statutory liquidity ratio requirements, while non-deposit taking housing finance companies are not subject to these requirements.
RBI has setup the National Housing Bank to keep check on Housing finance companies. Banks have the right to issue infrastructure bonds to raise long-term resources; while HFCs can increase long-term funds through issue of bonds and debentures.
HFCs do not require obtaining licenses for opening of new branches or office. They only have to inform the NHB of their intention to open a new branch or office.
In May 1999 ICICI Home Finance Company was included as a 100 % subsidiary of ICICI Personal Financial Services, the bank’s one-time consumer banking arm. Since May 2002, ICICI Home Finance has become a fully possessed subsidiary of ICICI Bank.
The bank is charging 12 % interest for home loans above Rs 20 lakh, which is 50 basis points higher than the interest on home loans up to Rs 20 lakh.
According to the plan the bank will be financing home loans only up to Rs 20 lakh, which qualify as priority sector lending. Home loans above Rs 20 lakh will be offered by ICICI Home Finance.
“ICICI Bank will focus on home loans with a ticket size of Rs 20 lakh, which qualifies as priority sector loans. The bank will keep the priority sector loan business with itself. Large ticket-size loans will be booked by ICICI Home Finance,’’ said Rajiv Sabharwal, senior general manager, ICICI Bank.
Housing loans up to Rs 20 lakh have a lower risk weight of 50 % for capital allocation purpose. Banks have to direct 40 % of their loans towards priority sector, including agriculture and small-scale industries. While larger ticket-size loans carry a higher risk weight of 75 %.
Recently RBI has approved banks home finance company. Following this, the bank has invested Rs 500 crore in the company, taking the net worth of the company to Rs 800 crore at the end of December 2007.
ICICI Bank private sector bank is moving ahead of creating a separate subsidiary for home finance, while public sector banks such as State Bank of India, Canara Bank and Punjab National Bank are considering merging their subsidiaries with themselves.
The biggest challenge for banks is to raise long-term finance. The home finance company will have search different sources of capital, which can be diversified and long term in nature. The home finance company will also be setting up branches in convenient locations, said Sabharwal.
The average home loan ticket size is around Rs 10 lakh. While Housing loans up to Rs 20 lakh form about 60 % of the banks’ mortgage portfolio.
At the end of March 31,2007 the total assets of the housing finance company stood at Rs 4,610.78 crore. In the third quarter of 2007-08, the home finance company gave out less than Rs 1,000 crore of home loans.
At the end of December 2007 ICICI Bank’s home loan volume grew by 12 % year-on-year to around Rs 60,000 crore. If the payment done at the end of the quarter in the home finance company were to be included, the growth in the home loan portfolio would be around 13-14 %.
This is a deceleration from the eminent levels of 40 % year-on-year growth which the bank had accounted in its mortgage lending portfolio in the previous year.
Housing finance companies are required to maintain a capital adequacy ratio of 12 %. Moreover, while banks have to keep aside Rs 32.5 of every Rs 100 raised to meet cash reserve ratio and statutory liquidity ratio requirements, while non-deposit taking housing finance companies are not subject to these requirements.
RBI has setup the National Housing Bank to keep check on Housing finance companies. Banks have the right to issue infrastructure bonds to raise long-term resources; while HFCs can increase long-term funds through issue of bonds and debentures.
HFCs do not require obtaining licenses for opening of new branches or office. They only have to inform the NHB of their intention to open a new branch or office.
In May 1999 ICICI Home Finance Company was included as a 100 % subsidiary of ICICI Personal Financial Services, the bank’s one-time consumer banking arm. Since May 2002, ICICI Home Finance has become a fully possessed subsidiary of ICICI Bank.
The bank is charging 12 % interest for home loans above Rs 20 lakh, which is 50 basis points higher than the interest on home loans up to Rs 20 lakh.
Monday, February 4, 2008
ICICI bank to start Industry-Academia Partnership Program in West Bengal Universities
ICICI bank has started an Industry-Academia Partnership Program in which it will provide banking and insurance courses in the university. The bank is in discussion with three leading universities of the West Bengal to launch banking and insurance courses.
Speaking on the sidelines of a seminar on entrepreneurship development in Kolkata on Friday, K V Kamath, managing director and CEO, ICICI Bank said while the proposal to start the course with Calcutta University had been more or less finalized, the dialogue was on with Burdwan University.
The bank is also having discussions with Jadavpur University to start similar courses.
Under its partnership program, the bank has tied-up with various universities across the country for industry-specific banking and insurance courses. The bank had already launched such courses with Manipal University and the Delhi University among others.
Kamath speaking at the seminar said, West Bengal had chosen the path of growth.
Few years ago, West Bengal had led India in the agriculture front, and now in the coming years, it would challenge the IT industries of other states advanced in the sector.
Speaking on the sidelines of a seminar on entrepreneurship development in Kolkata on Friday, K V Kamath, managing director and CEO, ICICI Bank said while the proposal to start the course with Calcutta University had been more or less finalized, the dialogue was on with Burdwan University.
The bank is also having discussions with Jadavpur University to start similar courses.
Under its partnership program, the bank has tied-up with various universities across the country for industry-specific banking and insurance courses. The bank had already launched such courses with Manipal University and the Delhi University among others.
Kamath speaking at the seminar said, West Bengal had chosen the path of growth.
Few years ago, West Bengal had led India in the agriculture front, and now in the coming years, it would challenge the IT industries of other states advanced in the sector.
Subscribe to:
Posts (Atom)