Financial Daily from THE HINDU group of publications
Wednesday, Apr 05, 2006


News
Features
Stocks
Shipping
Archives
Google

Group Sites

Money & Banking - Credit Market


ICICI retail credit disbursement robust, says ED

Our Bureau

Plans more credit card products

Mumbai , April 4

ICICI Bank's retail credit disbursement has been robust despite hike in lending rates, said Ms Chanda Kochhar, Executive Director, ICICI Bank. According to her, there is no liquidity crisis for the banking system.

Speaking to newspersons on the sidelines of a meeting to launch a new card product, Ms Kochhar said that in the last two months customers had become more interest rate sensitive and expected a hike in deposit rates. In order to meet the increased cost of funds, banks had then raised their lending rates, Ms Kochhar said.

ICICI Bank has increased its home loan rates by half a per cent since January 2006. Any further movement in interest rates would depend on factors such as inflation and impact of oil prices being passed on to the customer, she added.

The bank is also planning to launch more card products, including a private label card called Shakti in league with Big Bazaar. The card will be launched in Mumbai and is suitable for customers to whom banks don't give credit otherwise, said Mr B. Madhivanan, General Manager, Retail Asset Products Group. In this case, the target could be the homemaker, and the credit limit could be as small as Rs 2,000-3,000.

"This will give an indirect entry to shopping giants into the credit card space. It will also help us expand our credit card customers," he said.

The bank will also launch a white label multiple brand credit card with Airtel, Lifestyle, and HPCL. It will be launched by a company called "Loyalty Services and Research Ltd", which would be floated by a venture capital company. ICICI Bank is also one of the promoters, Mr Madhivanan said. Customers will get reward points and these can be redeemed against the products of any of these brands.

The bank has so far put up 1.5 lakh Point of Sale terminals and wants to expand in smaller towns and cities. So far, the bank has covered 100 towns and hopes to extend it to about 270 towns, where it has a presence.

More Stories on : Credit Market | Credit Cards & Debit Cards | ICICI Bank Ltd | Private Banks

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page



Stories in this Section
Improving returns from excess reserves


Rupee dips against dollar
3i Infotech re-brands banking tool
GE Money hikes home loan rate
BSLI capital infusion
RBI raises WMA limit
Bonds rise as liquidity improves
ICICI retail credit disbursement robust, says ED
Call rates fall on better liquidity
ICICI Bank, Pru Life offer annuity card
NRI deposits picking up in Kerala
Banks raise NRE, FCNR rates
SBI strike: Govt not to relent
More unions back SBI stir
A different stand
Tirupur exporters' assn concern
RRB staff to stage dharna
New ED for Vijaya Bank
New Indian Bank ED



The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2006, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line