ICICI Bank targets 20% growth in retail loans in Maharashtra

ICICI Bank

Within the mortgage portfolio, the focus is to drive growth in the affordable housing segment category.

ICICI Bank announced today that it aims to grow its retail loan disbursement in Maharashtra by 20% year-on-year to over Rs. 13,000 crore in FY’20. Major segments of retail loans such as consumer loan, mortgages and agri loans are set to grow at a rapid pace in the state this financial year. (Mumbai city and its suburbs are not included in this announcement as they are part of the Bank’s Mumbai region)

Highlights:

• Retail loans comprise of mainly mortgage, consumer loans and agri loans
• Consumer loans to grow by 22% to nearly Rs. 4,500 crore in FY’20
• Mortgage loan disbursement is likely to rise by 11% to over Rs. 4,200 crore in this fiscal
• The Bank will grow disbursement of agriculture related loans by 27% to over Rs. 4,300 crore

The Bank aims to achieve this growth by expanding its consumer loan disbursement, which comprises largely of personal, car & two-wheeler, commercial vehicle and gold loans, by 22% to nearly Rs. 4,500 crore in FY20, compared to FY19. Alongside, it will also grow mortgage loan disbursement by 11% to over Rs. 4,200 crore.

“Retail consumer loans have witnessed significant growth in Maharashtra 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 by 20% to over Rs. 13,000 crore in FY’20. We are focusing on consumer loans, home loans and agri loans to grow in the state” said Anup Bagchi, Executive Director, ICICI Bank.

“A significant driver of this growth is our technology led instantaneous loan offerings to our customers and making our products available in the tier II and tier III towns. Armed with our technological prowess, we now offer instant sanction of home loans, instant personal and auto loans to pre-approved customers instantaneously through our digital channels,“ added Mr. Bagchi.

Within the mortgage portfolio, the focus is to drive growth in the affordable housing segment category. In the affordable housing segment, the Bank is focusing on cities like Solapur, Ahmednagar, Nashik, Nagpur and outskirts of Pune -Talegaon, Chakan, Moshi, Wagholi among others. It is also expanding its home loan proposition to tier II & III cities with robust housing potential namely Nagpur, Nashik, Kolhapur and Satara among others.

Mr. Bagchi added, “We plan to increase our mortgage loan disbursement in Maharashtra by 11% to over Rs. 4,200 crore in FY’20. To drive this growth, we have adopted a multi-pronged strategy. This includes, focus on affordable housing segment, expansion to tier II & III markets and increase in credit processing centres (for quick decision making and disbursal of home loans). We have recently launched the industry’s first facility to get instant home loan approval upto Rs. one crore digitally. This technology led initiative is available to lakhs of our pre-approved customers and is a key part of our growth strategy.”

To make the home loan disbursal process quick and convenient to the customers, the Bank is planning to ramp up its credit processing units to six new cities like Ratnagiri, Talegaon, Ahmednagar, Amravati, Dhule and Khopoli.

On personal loans, Mr. Bagchi said that the Bank has been witnessing 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 in their account immediately. Additionally, we have seen good uptick in tier II towns/districts like Kolhapur, Sangli, Solapur, Hingoli, Bhandara, and Osmanabad among others for personal loans from both salaried as well as self-employed individuals.

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. Our efforts will be to tap potential in cities like Kolhapur, Nashik, Amravati, Chandrapur and Aurangabad among others.”

ICICI Bank has also been focusing on introducing innovative digital solutions for entrepreneurs and the Micro Small and Medium Enterprise (MSME) industry that offers them with an enhanced ease of doing business and greater opportunities for business expansion.