Chillin' out till it needs to be funded
Well ICICI Bank is back with a whimper if not a bang, befriending the 120k readers of mint (livemint.com) at the expense of the other half a million odd ET readers that do not give in to new fangled devices like HT Media’s Mint in India
Chanda Kochchar’s back to back press coverage rides over the last two exits of reform and vision from Kamath’s erstwhile team, with Dy MD, Sonjoy Chatterjee leaving for Goldman Sachs as CEO and ICICI Venture Presidents Jayanta and Directors Ananth and Sunay leaving in Renuka’s footsteps to create a new PE fund.
ICICI Bank has changed a few stripes having brought up the traditional CASA ratio to the fore of its strategy while making it clear that it would be throttling most other ventures of the bank with direction from the Bank in each relationship and almost apologising for the continuing disasters in low RoA and RoE. With 2000 branches and 5 million card holders, ICICI Bank in its new avatar is distinctly hampered by big brother and “Indian” SBI while FIIs invested for over 4 year would also be planning a portfolio exit/ exchange.
Meanwhile, the government’s infrastructure agenda has soldiers from IDFC, IDBI Bank ( Media and ent), REC, PFC, PGC ( All power project financing) and IL&FS entities that would never need/heed ICICI leadership nor support much of this bank’s expansion plans. ICICI Bank’s International Business is more profit oriented now but at 25% of business seems more important than it is to the banks plans and importantly its size.
However, apart from these blunt handicaps that are now legacy of ICICI Bank thru the entire teens, the bank has again shown some gumption in reducing credit losses and trimming the credit card and loan books in retail by almost 40% and a Capital Adequacy of 19% with enough capital at other ventures including insurance and asset management means the bank is not interested in approaching the primary markets in india
As a traditional commercial bank, growing credit portfolios from 2011, esp keeping pace in commercial and retail ahead of secular industry estimates will keep them growing at a high paced growth making it tough for other smaller ‘powers that be’ like PNB, Kotak and Canara Banks but permanently in the distinctly lower third tier behind CITI, StanChart and HSBC among MNC bank and SBI among the “indian” ones..s
Our introductury notes:
We are advantages.us, a venture spun out of necessity and by the best content management systems available, surviving mostly in a ‘blog’ structure to disseminate the research desk advantage..We have participated in every deal, in every trend decision in banking and invented and discovered new faultlines that will ‘habit’uate readers and world citizens to happenings of the next era. We have previously pointed out that one such big trend is the disastrous unfolding of India’s ICICI Bank..Please employ press and media agencies in India with the caveat that gems like us that outscore tiny properties like ET, Mint and even the WSJ have not empaneled us nor the quarter of a million managers that join India’s workforce every year with their influence counting only in Internet readership circulations. Statistics is quite a closed game in India, business is not.