Retail Banking: ICICIBC has been building strong digital capabilities with a focus on improving on all five key operating parameters: margins, fee income, acquisition cost, opex and credit cost. The bank sources 56% of its personal loans through digital channels, with ~75% of the unsecured products being sourced through its existing customers.

Secured loans business: It is using the digital platform to decongest the loan process by improving productivity and efficiency. The focus is on using analyticsbased prospecting to enable customers to understand products and create automated rule-based underwriting.

Unsecured business: Growth is primarily led by its own customers. Around 75% of the cards business is toward its own customers. Unsecured business CAGR has been 41% since FY15.

Business Banking: has identified focus sectors like tourism, retail, e-commerce, IT and financial services for pursuing growth opportunities. ICICIBC has built customized digital solutions to accelerate growth in business banking and expects this segment to grow at 35-40% over the next few years.

Credit framework strengthened; approach shifts to ‘One Bank One RoE’ : Management has adopted a two-pronged strategy focusing on the quality of the portfolio and earnings. Key variable in wholesale banking is ‘lumpy provisions’ and the bank targets this to be limited to 20%-25% of core operating profits.

Disclaimer: The above report is compiled from information available on public platforms. inChat team advises users to check with certified experts before taking any investment decisions.

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