Tag: ICICI Bank

Festive Bonanza! ICICI Bank launches special offers for customers, BFSI News, ET BFSI

Banking & Finance

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ICICI Bank has announced the launch of ‘Festive Bonanza’, which contains offers with instant discounts and cashbacks.

As part of the launch, the bank is offering benefits to retail and business customers on various banking products and services. The offers are available from today, and on various dates in the upcoming festive season.

Customers can avail these offers by using ICICI Bank debit or credit cards, internet banking and Cardless EMI. They can also avail offers like discounts on processing fee on loans, reduced EMIs on banking services and products such as loans, credit cards, savings and current accounts, NRI accounts, money transfer, consumer finance, business banking and investments, among others.

The e-commerce platforms that offering the discounts are Flipkart, Amazon, Myntra, Paytm, Bigbasket, Grofers, Supr Daily Pepperfry, JioMart, MakeMyTrip, Samsung, LG, Dell, Swiggy, Zomato, EazyDiner, Tribhovandas Bhimji Zaveri etc

Customers can avail these offers on categories like electronics, gadgets, global luxury brands, apparels, jewellery, grocery, automobile, furniture, travel and dining.



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Not one PSU bank in the top 5 lenders with lowest NPAs, BFSI News, ET BFSI

Banking & Finance

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Among Indian banks, HDFC Bank has stayed on top of the list of lenders with the lowest non-performing assets.

However, there is not a single public sector bank in the top five banks with the lowest NPAs.

HDFC Bank, which has reported more than 20 per cent YoY profit growth every quarter for over 40 quarters, has never crossed 0.5 per cent of loans in net non-performing assets. In its latest quarterly results, the bank’s net NPA ratio stood at 0.48%.

For retail loans, the bank relies on the model of wide franchise and low-cost deposit base, which ensures good pricing power and sustainability of above average net interest margins.

IndusInd Bank

The second number is held by IndusInd Bank. In its latest quarterly results, the bank’s gross non-performing assets (GNPAs) stood at 2.88 per cent as it was impacted by the second wave of Covid-19 while the net NPA ratio rose 15 basis points sequentially to 0.84 per cent.

The bank leads in certain retail asset classes with a pan India franchise which gives it strength to manage the asset quality in those segments.

ICICI Bank

The third bank on the list is ICICI Bank, which despite a rise in slippages, saw the net NPAs staying lower at 1.14 per cent as on March 31, 2021, against 1.54 per cent as on March 31, 2020. In its latest quarterly results, the bank reported a net NPA ratio of 1.16 per cent.

Federal Bank

The next on the list is Federal Bank that saw gross NPAs rise to 3.5 per cent and net NPAs increase marginally to 1.23 per cent largely due to the Covid-19 related challenges faced by borrowers in the latest quarterly results.

In fiscal 2021, Federal Bank exhibited a decline in NPAs due to diligent selection of borrowers, while its slippage ratio fell to 1.6%, lower than 1.7% in 2020.

Kotak Mahindra Bank

Kotak Mahindra Bank, the third largest Indian private sector bank by market capitalisation, has seen net NPAs consistently below 1.5 per cent. In its latest quarterly results, the bank’s asset quality weakened as gross NPAs stood at 3.56 per cent. However, net NPAs still came in below 1.5 per cent. The bank’s loan book has grown at a CAGR of over 25% over the past decade, which has been supported by a healthy contribution of low-cost deposits.



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ICICI Bank to offer instant OD to sellers registered on amazon.in

Banking & Finance

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ICICI Bank on Monday announced that it has partnered with Amazon India to offer overdraft (OD) facility upto ₹25 lakh to individual sellers and small businesses registered on the e-commerce marketplace amazon.in.

“Driven by API integration, the partnership enables sellers to avail an OD from the Bank in a process — from application to sanction to disbursement — that is entirely digital. Even customers of other banks can avail the OD facility from ICICI Bank, if they are registered as sellers with amazon.in,” it said in a statement.

ICICI Bank launches digital banking solutions for corporates

Leveraging advanced data analytics, ICICI Bank has developed this new facility that functions on the back of a scorecard to instantly evaluate credit worthiness of sellers based on their financial profile, including Credit Bureau scores, it further said.

New expansion avenues

“This new and improved process will help the sellers, who may otherwise not get access to adequate credit when assessed in the traditional way of using only balance sheets, bank statements and tax returns. We believe that this new proposition resonates with our effort in developing path-breaking innovations for MSME customers and will empower them with new avenues of business expansion,” said Pankaj Gadgil, Head-Self-Employed Segment, SME & Merchant Ecosystem, ICICI Bank.

‘Amazon expects 85% new customers from tier-2 cities’

Vikas Bansal, Director-Amazon Pay India, said, “Our mission is to enable easy and trusted access to credit for sellers with transparent policies and at low costs. Our partnership with ICICI Bank will provide sellers across India with an OD facility instantly and digitally at affordable rates to meet all their current and future requirements.”

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ICICI Bank to offer instant overdraft to sellers registered on Amazon India, BFSI News, ET BFSI

Banking & Finance

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ICICI Bank has announced that it has partnered with Amazon India to offer overdraft (OD) facility upto Rs 25 lakh to individual sellers and small businesses registered on the e-commerce company’s online marketplace, instantaneously and digitally. Driven by API integration, the partnership enables sellers to avail an OD from the Bank in a process, from application to sanction to disbursement, that is digital. Customers of other banks can avail the facility from ICICI Bank, if they are registered as sellers with amazon.in.

ICICI Bank has developed this new facility that functions on the back of an industry-first scorecard to evaluate credit worthiness of sellers based on their financial profile including Credit Bureau scores.

The new credit assessment method offers convenience to the sellers as it does away with the paper-intensive bank statements or income tax returns for assessing credit worthiness. Further, it empowers small businesses and individual sellers who are ‘new-to-credit’ and ‘existing MSME borrowers’ to unlock the value of their digital transactions and get access to instant credit.

In a statement, Pankaj Gadgil, Head- Self Employed Segment, SME & Merchant Ecosystem, ICICI Bank said, “This process will help the sellers, who may otherwise not get access to adequate credit when assessed in the traditional way of using only balance sheets, bank statements and tax returns. This new proposition resonates our effort in developing innovations for MSME customers and will empower them with new avenues of business expansion.”
Benefits of InstaOD:

  • Online loan application: Sellers registered on amazon.in can apply for the OD instantly online through amazon.in.
  • Easy process: The Bank evaluates sellers making the loan approval process easy and quick. This is an improvement over the typical process which demands sellers to go through the tedious paper-intensive process of submitting income tax returns, bank statements and GST returns.
  • Instant sanction and disbursal: The approved OD amount is instantly sanctioned and disbursed into the seller’s current account
  • Pay for what you use: Sellers only need to pay interest on the amount of OD utilised by them
  • Auto-renewal facility: The OD is renewable on an annual basis, depending on the repayment track records of the seller

“We are prioritizing our efforts to help sellers on amazon.in bounce back from the disruption owing to COVID-19. We want to enable easy access to credit for sellers with transparent policies and at low costs” said Vikas Bansal, Director – Amazon Pay India, in a statement.



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Sensex skyrockets 958 pts; Nifty tops 17,800, BFSI News, ET BFSI

Personal Finance

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Equity benchmark Sensex zoomed 958 points to end at a fresh lifetime high on Thursday, tracking gains in index majors Reliance Industries, HDFC twins and ICICI Bank amid a positive trend in global markets. Similarly, the broader NSE Nifty soared 276.30 points or 1.57 per cent to its new closing peak of 17,822.95. It touched an intra-day record of 17,843.90.

After scaling a new peak of 59,957.25 during the day, the 30-share Sensex settled 958.03 points or 1.63 per cent up at an all-time high of 59,885.36.

Bajaj Finserv was the top gainer in the Sensex pack, rising over 4 per cent, followed by L&T, HDFC, Axis Bank, SBI, Reliance Industries and IndusInd Bank.

On the other hand, Dr Reddy’s, ITC, Nestle and HUL were the laggards.

Domestic equities witnessed sharp recovery with benchmarks Nifty and Sensex both recording fresh all-time highs, said Binod Modi, Head-Strategy at Reliance Securities.

Favourable FOMC meeting outcome and ease of concerns from possible default of Evergrande aided market rally. Financials and Reliance Industries have dominated market rally, followed by metals, IT and auto, he added.

US Federal Reserve Chair Jerome Powell said the Fed plans to announce as early as November that it will start to taper its monthly bond purchases, should the job market maintain its steady improvement.

Elsewhere in Asia, bourses in Shanghai and Hong Kong ended with gains, while Seoul was in the red. Japanese market was closed for holidays.

Stock exchanges in Europe were also trading on a positive note in mid-session deals.

Meanwhile, international oil benchmark Brent crude slipped 0.12 per cent to USD 76.10 per barrel.



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Bank lending hit as corporates head to bond St, fintech firms poach retail borrowers, BFSI News, ET BFSI

Banking & Finance

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Overall bank lending could drop during this fiscal as corporate loan demand slumps and other sources of borrowings emerge.

Bank credit flow during April to August has shrunk over the same period a year ago, according to data from the Reserve Bank of India. This is despite the private-sector lenders such as HDFC Bank and ICICI Bank reporting double-digit growth in lending in the first quarter.

The overall fund flow into the economy grew by 10% in FY21 despite the pandemic. However, the incremental bank lending shrank 1.6% in FY21, while non-bank sources grew 30%.

Corporates reluctant

Banks are hoping for a lending spurt with the revival of capital expenditure, but it remains doubtful due to uncertainty over Covid.

Also, corporates are looking at cheaper avenues for funds. They raised Rs 1.8 lakh crore from the bond market this fiscal so far. Foreign direct investment and ECB have been also been strong, which has been bad news for banks. The buoyant equities market has seen corporates raising over Rs 1 lakh crore from the avenue during this fiscal till August.

In July

The total outstanding loans to large industries by the banking sector has shrunk for the 11th straight month in July 2021 as companies continue to deleverage and shift to cheaper options such as bonds. Most of the bank credit is driven by the retail and agri segments as sanctioned limits of corporates remain unutilised to the extent of 25%. The credit to large industries shrank 2.9% in July.

The credit growth in the last two months is being led by is led by MSMEs, agriculture and retail as corporate lending stays tepid.

PSU banks hit

The deleveraging has led to a drop in corporate loan demand for banks, especially PSU ones.

The domestic corporate loans by the State Bank of India fell 2.23 per cent to Rs 7,90,494 crore in the quarter ended June 30, 2021, compared to Rs 8,09,322 crore in the same quarter last year. In the first quarter of FY21, SBI reported 3.41 per cent growth in corporate advances.

Union Bank of India‘s share of industry exposure in domestic advances dropped to 38.12 per cent at Rs 2,40,237 crore from 39.4 per cent at Rs 2,47,986 crore in the same quarter a year ago. Corporate loans dropped 3% at Indian Bank during the last quarter. At PNB, corporate loans fell 0.57 per cent at Rs 3,264,66 crore in June quarter 2021 compared to Rs 3,28,350 crore a year ago.

Retail front

Banks, which have been relying on the retail sector, are facing competition. Non-banking financial companies that were reeling after the collapse of IL&FS have bounced back and emerged out of the pandemic relatively less hurt. Banks are facing competition from fintech firms, which have made borrowing a seamlessly easy experience.

with the advent of account aggregators, transaction details of borrowers can be open to lender, which may lead to poaching of customers.



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HDFC Bank, plots path to double retail loans, BFSI News, ET BFSI

Banking & Finance

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HDFC Bank, India’s largest private lender, plans to double the amount of loans it makes to retail borrowers over the next couple years as consumer demand ramps up from a pandemic-induced slowdown.

Uncertainty is declining and demand is improving as businesses seek to bolster growth after Covid-19, Arvind Kapil, the bank’s country head for retail assets, said in an interview. It’s an opportunity to reverse the declining share of loans to this segment of the market that was needed to preserve asset quality, he said.

“We are planning to double our retail assets book in a focused manner,” Kapil said. “I can sense a robust demand at ground level. I run businesses and I am giving you a feel of what I see.”

Of the bank’s total Rs 11.5 trillion ($156 billion) loan book, Kapil is in charge of retail borrowing worth 3.7 trillion rupees, which is expected to reach almost 8 trillion rupees within the next two years.

If successful, that would mark a sharp turnaround from its strategy a year ago when the bank slowed down its retail lending to protect its asset quality as the pandemic led to millions of job losses and businesses closures.

HDFC Bank’s retail lending share as portion of its total fell to 47 per cent in March, the lowest in at least five years from an average of 54 per cent to 55 per cent previously. The bank, which is also the nation’s most valuable, has the lowest bad-loan ratio among peers, and now wants to focus on unsecured loans for salaried workers, vehicle loans and government business.

“We are taking a pretty aggressive positioning to grow our retail loan book,” Kapil said. “We want to accelerate on segments where we can maintain the asset quality and offer the best return on assets.”

HDFC Bank, plots path to double retail loans
The Mumbai-based lender’s retail loans grew around 9.3 per cent slower than its overall book’s 14.4 per cent in the June quarter. That’s sharply lower than its peers like State Bank of India’s 16.5 per cent and ICICI Bank’s 20 per cent growth in that portfolio. Still, the lenders also saw a spike in bad loans in retail lending in the June quarter after an unexpected and more deadly new wave of the virus ripped through India. Since then, loan collections have improved and, for HDFC Bank, are back to pre-pandemic levels, Kapil said.

“The results of doubling our business will be more visible early next financial year,” he said. “We will balance our top-line growth with our return on assets objective.”



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Credit card issuances, spends see sharp uptick as festive season nears, BFSI News, ET BFSI

Banking & Finance

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Credit card firms are witnessing a sharp rebound in new card issuances and spends as lockdowns and restrictions ease across geographies.

On a year to date basis, the credit card industry witnessed a sharp improvement in spends, albeit on a marginally lower base in July. New card sourcing picked up momentum, supporting Cards-in-Force (CIF) growth of 10% YoY. In July 2021, the business volumes grew by 38% year on year, which was aided by the increasing shift towards online spending. Spends grew a robust 78% YoY. The new customer additions have shown an improvement in MoM and are expected to improve further thus aiding CIF growth.

ICICI Bank

Amongst the private banks, ICICI Bank continued to remain a clear outperformer registering a growth of 23%/145% YoY in CIF/Spends on a YTD basis. This resulted in the market share improvement of 190/503bps YoY in CIF/Spends to 17.7%/18.4% respectively. New card additions were the highest for ICICI at 655,000 during this fiscal

SBI Cards

SBI Cards picked up momentum with new card additions of 198,000 being the highest in the past 16 months, resulting in a CIF growth of 14% YoY. During YTDFY22, spends grew by 68% YoY, supported by a lower base a year ago. July 21 business volumes are encouraging and with the COVID 2.0 impact waning, the growth momentum is likely to sustain. Business volumes remained strong growing at 40% YoY in July 2021 and 46% on a YTD basis.

HDFC Bank

While HDFC Bank remains the market leader with a 20%+ market share in CIF/spends each, it continued to underperform as the credit card vertical was impacted due to the RBI’s restrictions on new card sourcing. However, with the RBI permitting the issuance of new cards, the company is expected to improve its performance. On a YTD basis, the performance remained muted with CIF remaining flat YoY and spends registering a growth of 60%, favoured by a lower base. The bank’s customer base came down by 222,000 customers in YTDFY22.

AU Small Finance Bank

AU Small Finance Bank, a new entrant in the credit card space since November 2020 has witnessed a strong pick-up (albeit the low base) since the commencement of the business. While the bank holds a negligible market share in terms of CIF/Spends which currently stand at 0.04/0.02% respectively on a YTDFY22 basis, increasing traction in the credit cards vertical would aid revenue streams for the bank.

The outlook

“The relaxations in the Covid related lockdowns and a gradual pick-up in the economic activities have aided a strong revival in spends, new sourcing, and business volumes in July 21. The forthcoming festive season will lend further support to the picked-up momentum in the spends and new customers sourcing. However, a possible Covid 3.0 remains a key risk. We continue to believe that Citi Bank’s exit from the credit cards business along with the domestic corporate loan recovery cycle yet to pick up, provides good growth opportunities for the credit cards business, supported by improving macro-conditions,’ Axis Securities said in a note.



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IIFL Home Finance signs pact with PNB for co-lending, BFSI News, ET BFSI

Personal Finance

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IIFL Home Finance on Friday signed an agreement with Punjab National Bank (PNB), the country’s second largest public sector bank, for co-lending.

IIFL Home Finance expects to grow their loan books by 25 per cent with this association. The loan sourcing and servicing will be managed by IIFL Home Finance and 80 per cent of the loan will be provided by PNB.

IIFL Home Finance will service customers through the entire loan cycle — from sourcing, documentation and collection to loan servicing.

This is the fourth agreement signed by IIFL Home Finance with banks. Earlier this year, it signed agreements with ICICI Bank, Central Bank of India and Standard Chartered Bank.

IIFL Home Finance has disbursed loans totalling Rs 170 crore under these arrangements so far.

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