The Hindu Business Line : ICICI Bank to focus on retail-led growth

Mr K.V. Kamath, CEO & MD, ICICI Bank, and Mr Kamlesh Vikamsey, President , ICAI, releasing the `Technical Guide on Risk-Based Internal Audit in Banks' in the Capital on Thursday. — Kamal Narang

New Delhi , Dec. 15

ICICI Bank, which had recently completed its $1.8-billion mega follow-on offering, is not eyeing any acquisitions for now. The country's largest private sector bank would continue to focus on the retail segment to drive its organic growth.

"Our growth will continue to be retail-led. With Indian GDP growing at over 8 per cent, we see good scope for growth in this segment. We are not looking at any acquisition. We will continue to follow organic growth," Mr K.V. Kamath, CEO and Managing Director, ICICI Bank, said on the sidelines of an event organised by the Institute of Chartered Accountants of India (ICAI).

Mr Kamath, who released an ICAI prepared technical guide on `Risk-based internal audit in banks', said that he does not see any upward movement in interest rates in the short run.

Mr Kamath said that his decision (taken in late nineties) to look at risks in a holistic manner is now helping the bank to take several steps towards Basle-II. "We had ensured that internal audit is all encompassing and all risks are out under one head. To this day, this function has not been diluted. As we have grown, we learnt how risk is managed in the outside world. We are following continuous audit in certain functions where we see high risk," he said.

He said that managements should not see the requirements of Sarbanes-Oxley legislation as something that is imposed, but something that is integral to running the business properly.

"We have looked at risk and internal audit and entire auditing function in the bank as something going beyond staid staff functions. Wherever possible, we have tried to integrate the two. We are reaping the reward of looking at risk management very early," Mr Kamath said.

In today's context, he felt that ICICI Bank couldn't plan on long-term strategies. "We have moved towards short-run strategic planning. Typically, strategies are laid out for two-three years. But course corrections can take place every 3-6 months depending on the signals that market is sending to the board or the feedback from our internal performance," he said.