ICICI is now the market leader in almost all the key financial businesses - retail lending, corporate banking, asset management and insurance. It is also the 2nd largest bank in India and the largest private bank. The total value of assets at more then Rs 260,000 crores is 9% of the entire banking system.
The retail loan book at Rs 90,000 crores is growing fast and despite the bank’s increased pace of growth is among the fastest growing banks. Retail constitutes the largest share of its loan book (67%) and these loans were up 60% in 1Q07.
The deposit base is also growing fast at (60%YoY). The fastest growth is happening in the savings deposit at 90%YoY.
ICICI has a 17% share of incremental system deposits indicating that it is aggressively growing its market share. The proposed international forays coupled with its strategy to go rural should be the growth drivers for the next few years.
Insurance and asset management sectors are witnessing strong growth. In the Private life insurance segment ICICI is the market leader is the market leader with a 32%. The new business premiums grew at 160% in 1QFY07. Its AMC has also now emerged as the largest in its segment
CLSA has valued ICICI’s stake in its subsidiary at Rs 18,000 crores.That comes to around Rs 200 per share. So the value of the main business is Rs 500 per share at around 1.88 times adjusted book (FY 07)
The Bank’s international strategy is powered by, globalization of Indian corporate and leveraging the low cost India technology structure.
Rural India is an under -banked segment to tap this opportunity ICICI is partnering with several companies and micro finance institutions and shall be developing innovative products. It already has put up 8,500 customer touch points in rural India and the loan book exceeds Rs18,000 crores.
Source: Company presentation at CLSA meet.
Edited by basant - 01/Oct/2006 at 1:12pm
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