Financial Daily from THE HINDU group of publications
Friday, Oct 14, 2005
Financial Daily from THE HINDU group of publications Friday, Oct 14, 2005 |
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Money & Banking
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Private Banks IDBI Bank sees Rs 10,000-cr retail assets by year-end Our Bureau
Mr Rajan Ghotgalkar, Corporate Head (Retail Banking), IDBI Bank, at a press conference in Chennai on Thursday. - - Bijoy Ghosh
Chennai , Oct. 13 IDBI Bank expects its retail assets to grow to Rs 10,000 crore by the end of this year, from Rs 7,500 crore at present. At a press conference here on Thursday , Mr Raja Ghotgalkar, Corporate Head - Retail Banking, said that the average yield on the retail portfolio was around 8.5 per cent. IDBI Bank's retail portfolio is mortgages-heavy, with housing loans accounting for Rs 6,000 crore. The bank wants to change this and plans to grow personal loan assets. The bank started giving personal loans only about eight months ago, and has since then built a book of Rs 600 crore, with an average yield of 16 per cent. Mr Ghotgalkar expects the book to grow to Rs 950 crore by the end of the year. Also, personal loans added 40,000 new customers to the bank. Yet, Mr Ghotgalkar said that IDBI Bank preferred to acquire customers first on the liability side (depositors), get to know them well and then cross-sell other products to them. "It is a very laborious, painful process," he said, and the bank would rather not rush madly into giving loans. The accent of safety is also one of the reasons why IDBI Bank is yet to launch its credit card, he said. Answering another question, Mr Ghotgalkar said that he did not expect home loan rates to go up much. He pointed out that a leading public sector bank had lowered its rates and said that banks like his could not afford to raise rates. As part of its strategy to grow its home loan portfolio, the bank will kick off its annual mega property exhibition `Homes 2005' in Chennai on Friday. The three-day exhibition will feature over 100 housing projects by some 25 builders, bank officials said.
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