ICICI Bank today announced that it continues to strengthen its retail franchise in Rajasthan through a host of digital initiatives and customer-centric approach. These initiatives are likely to grow the Bank’s retail loan disbursement in the state by 35% to over Rs. 15,500 crore in the financial year 2022, compared to last year.
In a virtual interaction with the media, Mr. Anup Bagchi, Executive Director, ICICI Bank, said: “We continue to strengthen our franchise, delivery and servicing capabilities, with a range of digital initiatives. Our endeavour is to create holistic value propositions for our customers through a 360-degree customer-centric approach and focus on opportunities across client and segment ecosystems, and micro-markets. We have created cross-functional teams to bring the benefit of the entire bank to all customers.”
Major segments of retail loans such as mortgage loans, consumer loans, business loans and overdrafts are set to grow at a rapid pace in the state this financial year. The Bank’s expects to leverage its technological prowess to achieve growth by expanding its mortgage loans disbursement by 50% to Rs. 4,200 crore and consumer loans by 30% to Rs. 4,100 crore. The Bank will also grow business loans, overdrafts and commodity-based financing disbursement by 50% to Rs. 4,600 crore.
Talking about mortgage loans, Mr. Bagchi added, “The pillars of the growth strategy are digital and instant sanctions of loans, expansion in the affordable housing segment, strengthening the team and emphasising on the self-employed segment. Our facility to offer instant home loan approval digitally—the country’s first—helps lakhs of our pre-approved customers as they get the sanction letter immediately. Within the mortgage portfolio, the Bank has expanded its teams in branches of prominent and upcoming locations like Bikaner, Sri Ganganagar, Kishangarh, Rajsamand, Nimbahera, Hanumangarh, Dausa, Ratangarh and Pali among others. All these initiatives are expected to help the mortgage loan disbursement grow in Rajasthan by 50% to Rs. 4,200 crore in FY’22, compared to F’Y21.”
Talking about business loans and overdrafts, Mr. Bagchi said, “We believe, businesses and self-employed individuals are the backbones of our society. We are the first bank to digitise an array of services for businesses at every stage of their lives. The Bank provides working capital and term loan financing to businesses across the state. Further, we offer a slew of state-of-the-art digital facilities; some of them are first-of-their-kind. The list includes instant current accounts, instant overdraft facility, business loans based on GST returns, digital platforms like ‘InstaBIZ’ app for businesses, internet banking for businesses and corporates, and Trade Online, a platform to carry out export-import transactions, among others. We believe all our digital facilities enable businesses to transact seamlessly and help them grow to their maximum potential.”
The Bank’s expansion focus is also on micro-markets like handicrafts and furniture in Jodhpur, stone/marble in Kishangarh, Jewellery in Jaipur, textile in Pali and agricultural commodities mandis in Baran, Tonk, Bikaner, Nokha and Sri Ganganagar. To drive this growth, the Bank has expanded the number of credit processing centres in Jaipur, Bhilwara and Jodhpur from three to 10 in the last one year or so.
On consumer loans, Mr. Bagchi said, “We offer customers digital and instant consumer loans. Our instant personal loan solution enables lakhs of pre-approved customers to get the money in their account instantaneously after applying through the internet / mobile banking platform. Currently, 50% of our personal loan disbursement in the state is through digital channels. Further, we have seen a good uptick in tier II and III towns like Ajmer, Alwar, Barmer, Baran and Bundi along with top cities like Jodhpur and Udaipur for personal loans from both salaried as well as self-employed individuals. Additionally, we have digitally integrated with key OEMs (car manufacturers) to offer instant and online car financing options to customers. Our focus for auto loans will be on emerging markets of tier II and III cities like Bharatpur, Pali, Barmer, Nagaur, Kotputli, Rajsamand and Banswara along with the top cities like Jaipur, Jodhpur, Kota and Udaipur.”
ICICI Bank also collaborates with various government departments to facilitate digital services for the citizens of the state. These include digital solutions for the collection of tender fees, property tax, utility (like electricity, water) bills, and web-based solutions to make online payments to vendors and DBT (Direct Beneficiaries Fund Transfer) among others.
About initiatives on empowering rural areas in the state
ICICI Bank has also undertaken several initiatives within the financial inclusion space. The Bank is supporting the entrepreneurial spirit of rural women of Rajasthan by its Self Help Group (SHG) programme. 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 lakh women in the state. The Bank has also opened nearly 22 lakh zero balance accounts for the underprivileged in the state.
In the rural segment, the Bank offers various lending solutions like Kisan Credit Card (KCC), loans for farm equipment and SHGs. The lending in rural areas is done 100% digitally with the TAB based ‘Express Agri’ application. It ensures faster turnaround time as it reduces re-work and movement of physical documents. The Bank also offers pre-qualified KCC to the existing customers. Additionally, the Bank conducts financial literacy programme for rural customers in the state for enhancing financial inclusion.
ICICI Group has also been actively involved in imparting free-of-cost vocational training to the underprivileged youth through ICICI Academy for Skills. The Academy had set up its first centre in Jaipur in 2013 and ever since, has imparted vocational training to over 19,500 underprivileged youth in Rajasthan.
Further, ICICI Foundation operates two Rural Self Employment Training Institutes (RSETIs) at Udaipur and Jodhpur along with 20 satellite centres to provide vocational training and placement support to people from marginalised communities. Since its inception, over 120,000 individuals have been trained through 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 touchpoints, the largest among private sector banks in the state. The Bank also services remote villages in the state that were hitherto unbanked, through its network of Customer Service Points (CSP) by Business Correspondents.