ICICI Bank says retail credit growth slowing down

09 March 2007

Mumbai: ICICI Bank says it sees a slowdown in the growth of its retail loans to 20 per cent this fiscal, against the previous year's jump of 40 per cent.

V Vaidyanathan executive director ICICI Bank said the interest rate increases through the year hade reduced the incremental growth in disbursements.

The growth of retail loans will, be sustained at 20-25 per cent next fiscal, he added.

He said the growth of mortgage finance, which is the largest contributor to the retail portfolio, had fallen due to a rise in property prices.

The share of home loans, which stands at 30 per cent of ICICI Bank's loan book, will shrink as a percentage of incremental business, he added. ICICI Bank's home loan outstandings stand at Rs 60,000 crore.

The bank plans to look at other avenues of income and modify its business model with the changing times.