ICICI Bank to Increase Retail Loan Disbursements in Rajasthan by 35% to Over Rs. 15,500 Crore in FY’22 | Udaipur News | Latest news from Udaipur
ICICI Bank today announced that it continues to strengthen its retail franchise in Rajasthan through a host of digital initiatives and a customer-centric approach. These initiatives are likely to increase the bank’s retail loan disbursements in the state by 35% to over Rs. 15,500 crore in fiscal year 2022, compared to last year.
In a virtual interaction with the media, Mr. Anup Bagchi, Executive Director, ICICI Bank, noted: “We continue to strengthen our franchise, delivery and service capabilities, with a range of digital initiatives. Our goal is to create holistic value propositions for our clients through a 360-degree client-centric approach and to focus on opportunities in client and segment ecosystems, and micro-markets. We have created cross-functional teams to bring the benefit of the whole bank to all customers.
Major consumer lending segments such as mortgages, consumer loans, business loans and overdrafts are expected to grow at a rapid pace in the state during this fiscal year. The Bank expects to leverage its technological prowess to achieve growth by increasing its mortgage disbursements by 50% to Rs. 4,200 crore and consumer loans by 30% to Rs. 4,100 crore. The Bank will also increase business loans, overdrafts and commodity-based financing disbursements by 50% to Rs. 4,600 crore.
Speaking of mortgages, Mr. Bagchi addedThe pillars of the growth strategy are digital and instant loan sanctions, expansion into the affordable housing segment, team building and a focus on the self-employed segment. Our ability to offer instant digital home loan approval – the country’s first – helps thousands of thousands of our pre-approved clients get the sanction letter right away. Within the mortgage portfolio, the Bank has expanded its teams into branches of prominent and upcoming locations like Bikaner, Sri Ganganagar, Kishangarh, Rajsamand, Nimbahera, Hanumangarh, Dausa, Ratangarh and Pali, among others. All of these initiatives are expected to help mortgage disbursement increase by 50% to Rs in Rajasthan. 4,200 crores in FY’22, compared to F’Y21. ”
Speaking of business loans and overdrafts, Mr. Bagchi said: “We believe that businesses and the self-employed are the backbone of our company. We are the first bank to digitize a range of services for businesses at every stage of their life. The Bank provides working capital and term loans to businesses across the state. In addition, we offer a multitude of state-of-the-art digital installations; some of them are the first of their kind. The list includes instant checking accounts, instant overdraft facility, commercial loans based on GST statements, digital platforms like the “InstaBIZ” app for businesses, online banking for businesses and businesses and Trade Online, a platform for carrying out import-export transactions, among others. We believe that all of our digital facilities allow businesses to transact seamlessly and help them develop to their maximum potential.
The Bank’s expansion also focuses on micro-markets such as handicrafts and furniture in Jodhpur, stone / marble in Kishangarh, jewelry in Jaipur, textiles in Pali and mandis agricultural products in Baran, Tonk, Bikaner, Nokha and Sri Ganganagar. To stimulate this growth, the Bank has increased the number of loan processing centers in Jaipur, Bhilwara and Jodhpur from three to 10 over the past year or so.
On consumer loans, Mr. Bagchi said, “We provide instant digital consumer loans to customers. Our instant personal loan solution enables hundreds of thousands of pre-approved clients to get money into their account instantly after applying through internet / mobile banking platform. Currently, 50% of our personal loan disbursements in the state are made through digital channels. In addition, we have seen a good increase in level II and III cities like Ajmer, Alwar, Barmer, Baran and Bundi, as well as in major cities like Jodhpur and Udaipur for personal loans for employees and self-employed. Additionally, we have digitally integrated with leading OEMs (automakers) to provide instant and online auto finance options to customers. We will focus on emerging markets of Tier II and III cities like Bharatpur, Pali, Barmer, Nagaur, Kotputli, Rajsamand and Banswara, as well as major cities like Jaipur, Jodhpur, Kota and Udaipur.
ICICI Bank also works with various government departments to facilitate digital services for the citizens of the state. These include digital solutions for collecting tender fees, property taxes, utility bills (like electricity, water) and a web-based solution for making online payments to suppliers. and DBT (Direct Beneficiaries Fund Transfer) among others.
About the State’s Rural Empowerment Initiatives
ICICI Bank has also launched several initiatives in the area of financial inclusion. The Bank supports the entrepreneurship of rural women in Rajasthan through its Self Help Group (SHG) program. The Bank is the largest lender to SHGs in Rajasthan with a market share of 45% (FY’21). The Bank has cumulatively disbursed loans to over 76,000 SHGs comprising nearly 10 lakhs of women in the state. The Bank also opened nearly 22 zero balance accounts for the underprivileged in the State.
In the rural segment, the Bank offers various loan solutions such as Kisan Credit Card (KCC), Farm Equipment Loans and SHGs. Lending in rural areas is done 100% digitally with the ‘Express Agri’ app based on TAB. It ensures faster turnaround time as it reduces rework and movement of physical documents. The Bank also offers pre-qualified KCCs to existing clients. In addition, the Bank is conducting a financial literacy program for the state’s rural clients to improve financial inclusion.
The ICICI group has also been actively involved in free vocational training for disadvantaged young people through the ICICI Academy for Skills. The Academy established its first center in Jaipur in 2013 and since then has provided vocational training to over 19,500 disadvantaged young people in Rajasthan.
In addition, the ICICI Foundation operates two Rural Independent Employment Training Institutes (RSETIs) in Udaipur and Jodhpur as well as 20 satellite centers to provide vocational training and job placement support to people from marginalized communities. Since its creation, more than 120,000 people have been trained thanks to these RSETIs.
The Bank has an extensive footprint across the state with nearly 490 branches and nearly 680 ATMs, creating a retail network of nearly 1,170 points of contact, the largest among private sector banks in the ‘State. The Bank also serves remote villages in the State, which were previously unbanked, through its network of Customer Service Points (CSP) by Business Correspondents.