ICICI Bank to foray into credit cards, Internet banking etc
ICICI Bank is likely to make a series of launches in the area of credit cards, Internet banking and other related areas such as e-commerce. Credit Cards being an overcrowded market, the bankís success in this sector is open to doubt.
ICICI Bank is a leading private sector bank promoted by Indiaís leading development financial institution ICICI. The advances of ICICI Bank have grown by 50% in 1999-2000.
ICICI Bank is all set to install 2000 ATMís all over the country. This will facilitate banking around the clock.
ICICI Bank is also likely to come out with an American Depository Shares (ADS) issue with a view to improve its capital adequacy ratio. The ADS issue will provide the bank with adequate funds for its acquisition plans and maiden ventures. The issue is likely to evoke a positive response in view of the fact that ICICIís issue was oversubscribed on the NYSE recently.
In line with a recent RBI announcement ICICI is to bring down itís holding in ICICI Bank from 74% to 40%. This will provide more of operational autonomy to ICICI Bank.
As of now the Non Performing Assets (NPAs) are 2.9 per cent of the advances, but this is likely to go up significantly owing to the recent RBI pronouncement directing ICICI Bank to make an additional provision to the extent of 135 m. This will adversely impact the bottom line.
ICICI Bank along with HDFC Bank has been one of the earliest to provide net based services. This has given the bank a headstart over its nearest competitors and has enabled it to bag loyal clientele for itself.Most private sector banks have consolidated their client bases by virtue of providing efficient and courteous service. It has also endeavoured to keep procedural formalities to a bare minimum and has been engaged in providing hassle free banking.
This is likely to increase in view of the recent launch of ICICI Direct.com which facilitates web based stock trading which requires ICICI bank to be the depository.
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