ICICI Bank close down its consumer loans division - by oxford_UNI
ICICI Bank, India's biggest retail bank, is in the process of closing down its retail sales finance division (consumer loans division). The move was initiated last month.
ICICI is among the many banks that have tightened disbursements of loans for small-ticket loans especially consumer durables, in the second half of 2007-08.
This closure comes after shutters were drawn on consumer durable financing by GE Money and CitiFinancial, two of the most aggressive firms in the business.
ICICI has a Rs 9,000 crore credit card portfolio with 8 million customers.
Banks such as ICICI have a small part of their total loan exposure to consumer durables.
Only 2-3% of ICICI's loans, for example, are given to buy consumer durables, compared with 50% for home loans , 30% to auto loans and 17% for personal loans.