Despite the high interest rate regime and liquidity pressures,ICICI Bank,the countrys largest private sector bank on Friday said it has comfortable liquidity and said that there has been good demand for loans from retail consumers.
We have diversified our funding base. For us liquidity has not been a problem as bulk of our deposits from retail side and we do not depend much on wholesale deposits, said Chanda Kochhar,MD and CEO,ICICI Bank.
Pointing out that credit growth for banks has been positive; she also said that credit growth has come largely from steady and healthy growth in the retail segment including automobile and home loans.
As per RBI data,gross bank credit grew by 18 per cent year on year by September end 2013. Concerned over the slow credit growth,the finance ministry on Thursday also announced plans to inject additional capital in state-owned banks to help them provide cheaper loans for automobiles and consumer durables.
Kochhar,who launched the ICICI Academy for Skills in Jaipur,also told reporters that demand and consumption from rural areas will get a boost on the back of a good monsoon. Villages and semi-urban areas will be the next centre for growth, she said.
Expressing hope that growth has bottomed out,she also said that many of the measures taken by the government would have an impact soon and economic growth is likely to pick up now. I think bottom should be done with. From here on,it would be going up, she said.
Kochhar said that ICICI Bank is already close to the target of spending two per cent of average profits on corporate social responsibility.