ICICI Bank 2003 Annual Report Download - page 17

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15
Business Overview
Retail Banking
Retail banking is a key element of our growth strategy. With upward migration of household
income levels, increasing affordability of retail finance and acceptance of use of credit to
finance purchases, retail credit has emerged as a rapidly growing opportunity for banks that
have the necessary skills and infrastructure to succeed in this business. ICICI Bank has
capitalized on the growing retail opportunity in India and has emerged as a market leader in
retail credit. The key dimensions of our retail strategy are innovative products, parity pricing,
customer convenience, strong processes and customer focus. Cross-selling of the entire
range of credit and investment products and banking services to our customers is a critical
aspect of our retail strategy.
ICICI Bank offers a wide range of retail credit products. We have expanded the market
significantly over the last few years by taking organized retail credit to a large number of
high-potential markets in India, by penetrating deeper into existing markets and by offering
customized solutions to meet the varying credit needs of the Indian consumer. ICICI Bank
is one of the leading providers of mortgage loans, two-wheeler loans, commercial vehicle
loans and personal unsecured loans, and continues to maintain leadership in automobile
finance. ICICI Bank’s total retail disbursements in fiscal 2003 were approximately
Rs. 200 billion. Retail credit constituted 18% of ICICI Bank’s balance sheet at
March 31, 2003, compared to only 6% at March 31, 2002. Cross-selling has emerged as
one of the significant drivers of retail credit growth. In fiscal 2003, cross-selling accounted
for about 20% of mortgage loans and auto loans and about 25% of credit cards issued.
In May 2003, ICICI Bank acquired the entire paid-up capital of Transamerica Apple Distribution
Finance Private Limited (TADFL), which has now been renamed as ICICI Distribution Finance
Private Limited (IDFL). IDFL is primarily engaged in providing distribution financing in the two-
wheeler segment. The acquisition is expected to supplement the Bank’s retail franchise,
especially in the two-wheeler segment.
During fiscal 2003, we continued our focus on retail deposits. This has reduced our funding
cost and has enabled us to create a stable funding base, with over 4.7 million deposit
customers. Following a life stage segmentation strategy, ICICI Bank offers differentiated
liability products to various categories of customers depending on their age group (Young
Star Accounts for children below the age of 18 years, Student Banking Services for students,
As the leading provider of
retail financial services, we are
constantly striving to provide
products and services that
enable customers to fulfil their
financial requirements. We are
committed to harness our
delivery network, technology
platforms and human talent to
offer our customers enhanced
banking experience on a
consistent basis.
Chanda Kochhar
Executive Director