ICICI Bank stops personal loans

By Dr Sanjay Chaturvedi

ICICI Bank have stoped giving personal loans from all its branches. The branch level solicitation of personal loan is stopped. When contacted, branches replied that they can only give personal loan against securities and Fixed Deposits.
A gressive bank, started its personal loan and retail in 1999 with housing finance branch to capture the housing finance market. It did in four years and have become India’s largest home loan provider.
Recently, the bank is on the line of convergence in foriegn bank and most likely to be treated likewise by RBI norms, have acquired Bank of Rajasthan to be in Indian flavour.
A sms saying that nothing wrong with the bank and a call from bank asking reason for fund transfer in 2009, gave reason to investors ans experts in banking sector to think about operational models of the bank.
Going slow on home loans and keeping personal loans out of branch’s jurisdiction, ICICI bank is in major reshuffling of its stretagies to remian in business.