Notes on Indian equities, sectors and economy

ICICI Bank’s NPA ratio for Retail

Posted by fairval on April 26, 2010

In a Feb10 PPT, ICICI Bank says 50% of retail NPAs are from unsecured loans. Retail NPAs at that time were Rs 2778 crore. NPAs from unsecured retail credit should then be about Rs 1400 crore.

Retail loan book at the time was Rs 80,700 crore. Of this, unsecured lending appeared to be 12%  – 7% in personal loans, and 5% in credit cards. This means unsecured book size was about Rs 10,000 crore. NPA ratio here – 14%.

No wonder, ICICI Bank wants to get out of unsecured loans. The figure would have been higher at its peak. All those who entered this market in FY08 with great gusto have met the same fate – Citi Finance, Chola, Indiabulls…


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