ICICI Bank shutters consumer loans unit

ICICI Bank, India's greatest retail bank, is in the procedure of shutting down its retail gross sales finance division (consumer loans division). The move was initiated last month.

V. Vaidyanathan, executive manager director, ICICI Depository Financial Institution said consumer loans through recognition card game would be both "cost effectual and quicker" for the bank, compared with refund through post-dated cheques.

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ICICI is among the many Banks that have got tightened expenses of loans for small-ticket loans especially consumer durables, in the 2nd one-half of 2007-08.

This closing come ups after shutters were drawn on consumer lasting funding by germanium Money and CitiFinancial, two of the most aggressive houses in the business.

Analysts said some banks, which still have got the divisions that give out little loans, are there for namesake only.

Vaidyanathan, who is in complaint of retail banking, makes not believe ICICI will lose out on possible borrowers because they don't ain a recognition card.

"The recognition card is fairly common; there are few people who don't ain 1 these days," he said.

ICICI have a Rs 9,000 crore recognition card portfolio with 8 million customers.

Banks such as as ICICI have got a little portion of their sum loan exposure to consumer durables.

Only 2-3% of ICICI's loans, for example, are given to purchase consumer durables, compared with 50% for place loans, 30% to car loans and 17% for personal loans.

ICICI, meanwhile, is moving its employees from the consumer loans division to recognition card game following the determination to travel consumer lasting loans to recognition cards.

Emails were sent out to human relationship directors working for the division, around 10 years back, corroborates a beginning from the bank. These employees will now be absorbed in the recognition card division, they were told.

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With no increases and publicities this year, this have got led to a batch of pyrosis in the recognition card division, as adjacent twelvemonth the existent employees will have to vie with more than people, points out the source.

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