ICICI Bank for years, country’s largest private sector lender in a bid to capture the fast growing Indian ultra-high class customer segment, has launched a novel financial solution. The bank said it aims to add over 1,000 customers in this space in 2008.
ICICI Bank's Executive Director V Vaidyanathan, in a press meet told reporters, "The bank would provide end-to-end financial solutions to cutsomers having a networth of above USD one million (around Rs 4 crore). The client-base in this segment is expected to grow to 3,500 from the present 2,500 by the end of this year."
He said the bank, will be offering to its customers solutions in alternative investments, structured notes, insurance products, corporate services, private equity investments and investment banking amongst others.
Vaidyanathan said at present, the bank's total client invested assets under management in the private banking portfolio stands at USD 26 billion and India alone contributes nearly USD 19 billion.
He further added that India, which has witnessed a robust economic growth over the last four years, has nearly one lakh people having wealth above USD one million. It is expected that the projected figure will grow by 20 per cent each year.
Friday, May 30, 2008
ICICI Bank launched financial solution for ultra- high class
ICICI Bank for years, country’s largest private sector lender in a bid to capture the fast growing Indian ultra-high class customer segment, has launched a novel financial solution. The bank said it aims to add over 1,000 customers in this space in 2008.
ICICI Bank's Executive Director V Vaidyanathan, in a press meet told reporters, "The bank would provide end-to-end financial solutions to cutsomers having a networth of above USD one million (around Rs 4 crore). The client-base in this segment is expected to grow to 3,500 from the present 2,500 by the end of this year."
He said the bank, will be offering to its customers solutions in alternative investments, structured notes, insurance products, corporate services, private equity investments and investment banking amongst others.
Vaidyanathan said at present, the bank's total client invested assets under management in the private banking portfolio stands at USD 26 billion and India alone contributes nearly USD 19 billion.
He further added that India, which has witnessed a robust economic growth over the last four years, has nearly one lakh people having wealth above USD one million. It is expected that the projected figure will grow by 20 per cent each year.
ICICI Bank's Executive Director V Vaidyanathan, in a press meet told reporters, "The bank would provide end-to-end financial solutions to cutsomers having a networth of above USD one million (around Rs 4 crore). The client-base in this segment is expected to grow to 3,500 from the present 2,500 by the end of this year."
He said the bank, will be offering to its customers solutions in alternative investments, structured notes, insurance products, corporate services, private equity investments and investment banking amongst others.
Vaidyanathan said at present, the bank's total client invested assets under management in the private banking portfolio stands at USD 26 billion and India alone contributes nearly USD 19 billion.
He further added that India, which has witnessed a robust economic growth over the last four years, has nearly one lakh people having wealth above USD one million. It is expected that the projected figure will grow by 20 per cent each year.
ICICI Bank slapped with damages for debit error
In a recent judgment the state consumer disputes redressal commission instructed ICICI bank to pay Rs 30,000 in compensation to Kalyan Kumar Sur, a resident of Dum Dum’s RN Guha Road.
The bank has been charged for wrongly debiting customers credit card account and sending him monthly statements even after he had surrendered the card.
In its order the commission said a copy of the order must be sent to the Reserve Bank of India governor, “so the RBI is aware how the business of a reputed private bank is conducted and how the credit card-holders are taken for a ride”.
The complainant Sur was holding a Gold Credit Card and his wife Sarbani an add-on card of ICICI Bank. On December 30, 2004, Sarbani made purchase worth Rs 183.95 using her card and repaid the amount on February 1, 2005.
Sur alleged that the dues were cleared within the deadline of interest-free repayment, then also the bank in the statement issued on February 2, 2005, levied a late payment charge of Rs 250 and service tax of Rs 25. This, along with other purchases, took the closing balance to Rs 655.
Therefore Sur approached the bank and he was assured by the bank officials that the mistake would be rectified. But it was not. In spite of repeated reminders sent by Sur to bank authority for the irregularity, the subsequent statements kept charging the couple interest and service tax.
In the statement of September 9, 2005, bank showed the charges of Rs 29,827, which the bank claimed was a “debit transaction” in the earlier month. The closing balance in October 2005 was around Rs 42,000 and the bank asked Sur to pay up immediately.
Although couple had stopped making purchases using the cards, the debit balance kept increasing in the subsequent months, prompting Sur to ask for proof of his taking any loan from the bank.
Sur had returned the credit card to the bank in January 2006 after tearing it apart.
A lawyer’s notice was sent to him by the bank asking him to clear all the dues immediately. At this Sur filed a complaint with the Calcutta District Consumer Forum II, alleging that the bank could not produce any evidence of providing him a loan and yet was threatening him to “repay the dues”.
After hearing the case the forum slapped compensation of Rs 1 lakh on ICICI Bank. The bank then moved the state commission against the order, denying the allegations of Sur.
“The allegations of the complainant were without any basis, since he had failed to adduce satisfactory evidence in support of his contention,” the bank told the commission.
But banks plea was dismissed by the state panel and asked it to pay a compensation of Rs 30,000 to Sur.
“We are yet to get the certified copy of the order. Once we receive it, the course of action will be planned,” said a bank official.
The bank has been charged for wrongly debiting customers credit card account and sending him monthly statements even after he had surrendered the card.
In its order the commission said a copy of the order must be sent to the Reserve Bank of India governor, “so the RBI is aware how the business of a reputed private bank is conducted and how the credit card-holders are taken for a ride”.
The complainant Sur was holding a Gold Credit Card and his wife Sarbani an add-on card of ICICI Bank. On December 30, 2004, Sarbani made purchase worth Rs 183.95 using her card and repaid the amount on February 1, 2005.
Sur alleged that the dues were cleared within the deadline of interest-free repayment, then also the bank in the statement issued on February 2, 2005, levied a late payment charge of Rs 250 and service tax of Rs 25. This, along with other purchases, took the closing balance to Rs 655.
Therefore Sur approached the bank and he was assured by the bank officials that the mistake would be rectified. But it was not. In spite of repeated reminders sent by Sur to bank authority for the irregularity, the subsequent statements kept charging the couple interest and service tax.
In the statement of September 9, 2005, bank showed the charges of Rs 29,827, which the bank claimed was a “debit transaction” in the earlier month. The closing balance in October 2005 was around Rs 42,000 and the bank asked Sur to pay up immediately.
Although couple had stopped making purchases using the cards, the debit balance kept increasing in the subsequent months, prompting Sur to ask for proof of his taking any loan from the bank.
Sur had returned the credit card to the bank in January 2006 after tearing it apart.
A lawyer’s notice was sent to him by the bank asking him to clear all the dues immediately. At this Sur filed a complaint with the Calcutta District Consumer Forum II, alleging that the bank could not produce any evidence of providing him a loan and yet was threatening him to “repay the dues”.
After hearing the case the forum slapped compensation of Rs 1 lakh on ICICI Bank. The bank then moved the state commission against the order, denying the allegations of Sur.
“The allegations of the complainant were without any basis, since he had failed to adduce satisfactory evidence in support of his contention,” the bank told the commission.
But banks plea was dismissed by the state panel and asked it to pay a compensation of Rs 30,000 to Sur.
“We are yet to get the certified copy of the order. Once we receive it, the course of action will be planned,” said a bank official.
Pay ICIC Prudential Life premium online
ICICI Prudential Life Insurance signed an agreement with American Express Banking Corp, to provide the online payment gateway to the private insurer's policy-holders across the world to pay their premiums online.
According to banks press release customers who are ICICI Prudential Life policy-holder and also have American Express Card will be able to log into insurance company's website to pay premiums through American Express online payment gateway.
On the other hand, policy-holders have another option also they can go to any ICICI Prudential Life branch and make a one-time premium payment. Furthermore, the policy-holder also having credit card can give instruction for auto debit from credit card for subsequent premiums.
ICICI Prudential Life's Executive Vice-President, Anita Pai, said "our partnership with American Express is yet another step in the direction of making customer interactions convenient and effortless."
According to banks press release customers who are ICICI Prudential Life policy-holder and also have American Express Card will be able to log into insurance company's website to pay premiums through American Express online payment gateway.
On the other hand, policy-holders have another option also they can go to any ICICI Prudential Life branch and make a one-time premium payment. Furthermore, the policy-holder also having credit card can give instruction for auto debit from credit card for subsequent premiums.
ICICI Prudential Life's Executive Vice-President, Anita Pai, said "our partnership with American Express is yet another step in the direction of making customer interactions convenient and effortless."
Thursday, May 29, 2008
ICICI bank to enter into private banking
ICICI bank country’s second-largest bank is getting into private-banking by extending its retail segment to the higher-end of the market. However ICICI is making entry late in this segment whereas for the past few years host of foreign banks like BNP Paribas, ABN Amro, Deustche Bank, Citi, HSBC, Merrill Lynch, are already operating in this segment and will have to face competition from them.
In India the number of millionaires (those with liquid assets of over Rs 4.3 crore) has increased which is estimated to be at over 1 lakh, has allured banks to get into private banking space. According to ICICI Bank officials there are around 20 % of the bigger players in the market.
Private banking refers to the personalized service provided to elite customers as against mass retail banking. In fact private banking is more people and process-driven than capital intensive. ICICI Bank main focus in the beginning will be more on the middle and the upper ends of the markets. Recently it has doubled the minimum average balance for its savings accounts to Rs 10,000 from Rs 5,000 earlier.
Similarly to other banks in India, ICICI Bank has also set $1 million as an entry limit for private banking. The bank is having a team of 250 relationship managers globally and plans to add another 100 to its team. V Vaidyanathan, ED, ICICI Bank said, “We already have 2,500 customers and are looking to add 1,000 more in the next one year. We will be launching this product in all the countries where we have a presence. Globally, this is a $30-trillion opportunity and is growing at a fast pace.”
Bank will be facing two way challenges from the existing foreign banks as well as from new entrants. Swiss bank UBS, the world’s largest private banker, has obtained a banking license and is expected to enter the market soon. Other players like Morgan Stanley have recently launched private banking in the country. In addition to this there is a host of Indian players in wealth management; in this segment ICICI Bank is already having its presence for the past few years. ICICI Bank officials claimed that they are already having $26 billion of assets under management, of which $19 billion is in India.
In India the number of millionaires (those with liquid assets of over Rs 4.3 crore) has increased which is estimated to be at over 1 lakh, has allured banks to get into private banking space. According to ICICI Bank officials there are around 20 % of the bigger players in the market.
Private banking refers to the personalized service provided to elite customers as against mass retail banking. In fact private banking is more people and process-driven than capital intensive. ICICI Bank main focus in the beginning will be more on the middle and the upper ends of the markets. Recently it has doubled the minimum average balance for its savings accounts to Rs 10,000 from Rs 5,000 earlier.
Similarly to other banks in India, ICICI Bank has also set $1 million as an entry limit for private banking. The bank is having a team of 250 relationship managers globally and plans to add another 100 to its team. V Vaidyanathan, ED, ICICI Bank said, “We already have 2,500 customers and are looking to add 1,000 more in the next one year. We will be launching this product in all the countries where we have a presence. Globally, this is a $30-trillion opportunity and is growing at a fast pace.”
Bank will be facing two way challenges from the existing foreign banks as well as from new entrants. Swiss bank UBS, the world’s largest private banker, has obtained a banking license and is expected to enter the market soon. Other players like Morgan Stanley have recently launched private banking in the country. In addition to this there is a host of Indian players in wealth management; in this segment ICICI Bank is already having its presence for the past few years. ICICI Bank officials claimed that they are already having $26 billion of assets under management, of which $19 billion is in India.
Monday, May 26, 2008
ICICI Bank makes strategic shift to corporate loans
ICICI Bank India’s second largest private sector lender has decided to refocus on corporate loans as its sees bigger opportunities in this segment. Therefore it has decided to go slow on its retail assets expansion though after three years it has seen fast growth in the segment.
As a result, consumer loans, mortgages and auto loans, which collectively accounted for about 69% of ICICI’s total loan book two years ago, have now come down to 58%, and are set to go down further.
The shift stems from India’s second largest private sector lender believing that there is a bigger opportunity in corporate loans.
Whereas, some banking experts believe that ICICI who has been an aggressive consumer lender all these years, has experienced bitter end in the retail segment due to growing non-performing assets or NPAs in such loans. While Chanda Kochchar, joint managing director and CFO of ICICI pointed out that it is not possible to keep growing at the bank’s previous scorching pace, especially when its base is expanding.
In an interview given to Mint Kochchar said, “The growth rate of consumer credit will come down from 35-40% to 12-15% this year”.
She said growth in consumer credit will be in accordance with the industry, but its growth for corporate credit will be higher than the industry, or more than 20%. She explained that the main focus of the bank will be on retail liabilities instead of assets, which means the bank will be aggressively mopping up retail deposits and not go for retail loans because retail deposits cost less than wholesale deposits, which in turn can bring down the cost of deposits and add to the profitability of ICICI.
Currently the bank has already pushed up the share of current and savings accounts of its total deposits to 26% from 22% of its total deposits by focusing on retail deposits.
A bank is not paying any interest on current accounts and pays 3.5% on savings accounts.
“Three years back, our corporate credit book was growing at 5%,” said Kochchar. “(For the) last two years, the growth was around 12-15%. Now, we could grow at even 25%. The high consumer spend in the last few years created huge demand, and Indian firms now want to invest big money. By our estimates, there is about $700 billion (Rs29.9 trillion) investment in the pipeline. If you include the working capital requirement of Indian firms and the money required for overseas acquisitions, banks’ corporate loan book should grow between 20% and 25% this year.”
Kochchar also confronted the market insight about growing NPAs in consumer finance in ICICI Bank.
“Yes, the total value of NPAs in consumer loans is growing, but this is because our portfolio of unsecured loans is growing,” she said. “Earlier, unsecured loans were 13% of our total retail loans and now they have gone up to 18%. But, the losses are moving within the accepted level.”
In March the net NPAs of ICICI raised to 1.49%, which is up from about 1% a year ago.
As a result, consumer loans, mortgages and auto loans, which collectively accounted for about 69% of ICICI’s total loan book two years ago, have now come down to 58%, and are set to go down further.
The shift stems from India’s second largest private sector lender believing that there is a bigger opportunity in corporate loans.
Whereas, some banking experts believe that ICICI who has been an aggressive consumer lender all these years, has experienced bitter end in the retail segment due to growing non-performing assets or NPAs in such loans. While Chanda Kochchar, joint managing director and CFO of ICICI pointed out that it is not possible to keep growing at the bank’s previous scorching pace, especially when its base is expanding.
In an interview given to Mint Kochchar said, “The growth rate of consumer credit will come down from 35-40% to 12-15% this year”.
She said growth in consumer credit will be in accordance with the industry, but its growth for corporate credit will be higher than the industry, or more than 20%. She explained that the main focus of the bank will be on retail liabilities instead of assets, which means the bank will be aggressively mopping up retail deposits and not go for retail loans because retail deposits cost less than wholesale deposits, which in turn can bring down the cost of deposits and add to the profitability of ICICI.
Currently the bank has already pushed up the share of current and savings accounts of its total deposits to 26% from 22% of its total deposits by focusing on retail deposits.
A bank is not paying any interest on current accounts and pays 3.5% on savings accounts.
“Three years back, our corporate credit book was growing at 5%,” said Kochchar. “(For the) last two years, the growth was around 12-15%. Now, we could grow at even 25%. The high consumer spend in the last few years created huge demand, and Indian firms now want to invest big money. By our estimates, there is about $700 billion (Rs29.9 trillion) investment in the pipeline. If you include the working capital requirement of Indian firms and the money required for overseas acquisitions, banks’ corporate loan book should grow between 20% and 25% this year.”
Kochchar also confronted the market insight about growing NPAs in consumer finance in ICICI Bank.
“Yes, the total value of NPAs in consumer loans is growing, but this is because our portfolio of unsecured loans is growing,” she said. “Earlier, unsecured loans were 13% of our total retail loans and now they have gone up to 18%. But, the losses are moving within the accepted level.”
In March the net NPAs of ICICI raised to 1.49%, which is up from about 1% a year ago.
Friday, May 23, 2008
ICICI Bank cash van traceless after 24hrs
Bullet-proof van was hijacked at Salgadi on NH-33, about 65km from Jamshedpur, was carrying of carrying Rs 5.07 crore cash and gold coins weighing 1.20kg belonging to ICICI Bank. The van remains untraced even after 24 hours. Police suspects Maoists behind this hijack.
Director-general of police V.D. Ram said, “Neither the vehicle nor the cash and gold have been recovered so far but we are making all efforts.” He had visited the site of loot between Tamar and Bundu this afternoon.
According to senior police officers it is the fault from the ICICI Bank side for not informing the district administration about the movement of cash from Jamshedpur to Ranchi, allegedly undertaken by the bank at least twice a month, as per procedures it is mandatory to give prior information.
In fact the police are working on a “conspiracy” angle to the robbery. Ranchi police today cross-examined several key bank officials suspecting involvement of insiders of ICICI Bank’s Bistupur or Sakchi branch of revealing to the extremists about the cash movement, including van driver Vinay Singh, security guards Sagar and Babulal Mahto, two loaders Albinus Kachhap and Soma Kacchap, and bank official Parveen Kumar, who were in the hijacked vehicle.
East Singhbhum superintendent of police Naveen Kumar Singh, had made an on-the-spot, inquiry, said, “Some of the bank officials appear to be hand-in-glove with the extremists.”
Superintendent of police remarked, that, “The occupants of the high-profile security van had stopped at Salgadi on their own. The question arises, why they stopped the vehicle at a place, which is Naxalite-prone. Also, how could the Naxalites reach there moments after the van had stopped?”
The police suspect the hand of Jharkhand Liberation Front of India (JLFI) behind the said robbery, which was till recently known as Jharkhand Liberation Tigers. Jharkhand Liberation Front of India is known to loot and rob to fund their operations.
The police has intensified search around Barigarha forest where it suspect extremists might be hiding with the van belonging to the Mumbai-based Top Security Agency, along with all the cash and gold. A technical team has also been set up to track down the exact location of the van and the extremists.
A four-member team, including two retired IPS officials of Top Security Agency has been sent to assist the police.
Director-general of police V.D. Ram said, “Neither the vehicle nor the cash and gold have been recovered so far but we are making all efforts.” He had visited the site of loot between Tamar and Bundu this afternoon.
According to senior police officers it is the fault from the ICICI Bank side for not informing the district administration about the movement of cash from Jamshedpur to Ranchi, allegedly undertaken by the bank at least twice a month, as per procedures it is mandatory to give prior information.
In fact the police are working on a “conspiracy” angle to the robbery. Ranchi police today cross-examined several key bank officials suspecting involvement of insiders of ICICI Bank’s Bistupur or Sakchi branch of revealing to the extremists about the cash movement, including van driver Vinay Singh, security guards Sagar and Babulal Mahto, two loaders Albinus Kachhap and Soma Kacchap, and bank official Parveen Kumar, who were in the hijacked vehicle.
East Singhbhum superintendent of police Naveen Kumar Singh, had made an on-the-spot, inquiry, said, “Some of the bank officials appear to be hand-in-glove with the extremists.”
Superintendent of police remarked, that, “The occupants of the high-profile security van had stopped at Salgadi on their own. The question arises, why they stopped the vehicle at a place, which is Naxalite-prone. Also, how could the Naxalites reach there moments after the van had stopped?”
The police suspect the hand of Jharkhand Liberation Front of India (JLFI) behind the said robbery, which was till recently known as Jharkhand Liberation Tigers. Jharkhand Liberation Front of India is known to loot and rob to fund their operations.
The police has intensified search around Barigarha forest where it suspect extremists might be hiding with the van belonging to the Mumbai-based Top Security Agency, along with all the cash and gold. A technical team has also been set up to track down the exact location of the van and the extremists.
A four-member team, including two retired IPS officials of Top Security Agency has been sent to assist the police.
Monday, May 19, 2008
ICICI Bank launches Platinum Identity Credit Card with high value offers
ICICI Bank India’s largest private sector bank launched a new card in its premium series ‘ICICI Bank Platinum Identity Credit Card’. The card has been designed to for the elite section of the society who wishes to experience the privileges that are offered to the global cardholder. The ‘Platinum Identity’ credit card offers a high value scheme, as it brings together shopping, travel and golfing privileges along with a powerful reward program and distinguished service benefits.
The card is an up gradation of its previous lifestyle and travel cards designed keeping in view with the changing lifestyle and demand of the people.
Sachin Khandelwal, head- cards product group, ICICI Bank said, “This card is launched keeping in mind the fact that our customers have matured and demanding more exclusive offers. We will offer our customers value and privileges which are, the best in the industry. Keeping in line with the changing lifestyle of our customers, the Platinum Identity product has been designed to make cardholders feel truly special as well as to meet their evolved needs specially related to travel and lifestyle. This is a global offering at a truly competitive price point.”
The card carries a nominal fee on an annual basis, and the card has a credit limit of Rs 2.5 lakh plus.
The other exclusive features and privileges the card offers are accelerated rewards program, exclusive rewards catalogue, a powerful air mile conversion option and travel benefits which include Rs 1 crore air accident insurance and complete fuel surcharge waiver across pumps.
Apart from this the card also features a full-fledged concierge services, named i-Assist, which will address the lifestyle needs of the cardholders.
The Platinum Identity Credit Card offers the following features:
The card is an up gradation of its previous lifestyle and travel cards designed keeping in view with the changing lifestyle and demand of the people.
Sachin Khandelwal, head- cards product group, ICICI Bank said, “This card is launched keeping in mind the fact that our customers have matured and demanding more exclusive offers. We will offer our customers value and privileges which are, the best in the industry. Keeping in line with the changing lifestyle of our customers, the Platinum Identity product has been designed to make cardholders feel truly special as well as to meet their evolved needs specially related to travel and lifestyle. This is a global offering at a truly competitive price point.”
The card carries a nominal fee on an annual basis, and the card has a credit limit of Rs 2.5 lakh plus.
The other exclusive features and privileges the card offers are accelerated rewards program, exclusive rewards catalogue, a powerful air mile conversion option and travel benefits which include Rs 1 crore air accident insurance and complete fuel surcharge waiver across pumps.
Apart from this the card also features a full-fledged concierge services, named i-Assist, which will address the lifestyle needs of the cardholders.
The Platinum Identity Credit Card offers the following features:
- Welcome privileges - Golf Fee Card with two year membership and Priority Pass
- Accelerated rewards earn – double reward points on international spends, fast-forward earning through the powerful Xpress Rewards program
- Exclusive rewards redemption catalogue ‘Hand-picked Rewards’ featuring premium brands
- Superior air mile conversion program – Convert your reward points into air miles
- Comprehensive air accident insurance of Rs. 1 crore
- Complete waiver of fuel surcharge
- ‘Specials’ - Exclusive offers in lifestyle categories
- ‘i-Assist’ - A round-the-clock, complimentary service that provides assistance with travel and restaurant reservations, gift arrangements, event tickets, and more.
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