For years, ICICI was easily the most aggressive bank in India. And today it is paying the price for that aggression, as its NPA levels have hurt valuations in a big way. Compared to a player like HDFC, ICICI has less than HALF the valuation of HDFC, despite having bigger operations!
But all that aggression did not just happen in terms of retail and corporate loans. That aggression also manifested itself in multiple other areas. And today ICICI is positioned to reap a rich harvest from many of those areas.
The ICICI Prudential Life Insurance is slated to open on the 19th of September. And this will obviously be a huge thing. ICICI's residual stake in IPru Life, will be over Rs 25,000 crore, even at the bottom of the band. The money they get from selling the 12% stake will go a long way in easing their NPA issues.
And it is not just IPru Life. There is IPru Asset Management, ICICI Lombard, and many other subsidiaries of ICICI where they are the leading private sector players in their respective fields. At some point or the other, these will all get monetized. You can be sure that IPru is just the first on the list.
But even more than this, ICICI is the first player in the world to recognize the importance of social banking. ICICI Pockets was the first ever banking product launched on Facebook globally. And it still is unique in that space. B2B Branch free banking is also a unique initiative from ICICI which was crippled because of the KYC Paper work needed, and the physical presence that KYC required. But with eKYC becoming the new norm, B2B is poised to become the low cost banking channel of the future. Even in terms of payments, ICICI eToll solution for Toll payment in highways was the first in India, launched almost a year back. Its only now that a few other banks are getting their act together in this space.
The FinTech revolution is going to impact banks around the world in dramatic ways, and ICICI is well positioned to adapt to the new world. There are many who look at the cutting edge of FinTech as just blockchain, distributed ledgers, etc. But FinTech is about a lot more than that - and there are huge areas that are ripe for exploitation today. ICICI is doing a great job in being a first mover in those areas.
The aggression that's there in the ICICI DNA has helped it position itself in a sweet spot for the future. And I must say, it may even save ICICI some blushes in the lending space!
Skate to where the puck will be - not where the puck was. And ICICI very much is skating to where the puck will be.
But all that aggression did not just happen in terms of retail and corporate loans. That aggression also manifested itself in multiple other areas. And today ICICI is positioned to reap a rich harvest from many of those areas.
The ICICI Prudential Life Insurance is slated to open on the 19th of September. And this will obviously be a huge thing. ICICI's residual stake in IPru Life, will be over Rs 25,000 crore, even at the bottom of the band. The money they get from selling the 12% stake will go a long way in easing their NPA issues.
And it is not just IPru Life. There is IPru Asset Management, ICICI Lombard, and many other subsidiaries of ICICI where they are the leading private sector players in their respective fields. At some point or the other, these will all get monetized. You can be sure that IPru is just the first on the list.
But even more than this, ICICI is the first player in the world to recognize the importance of social banking. ICICI Pockets was the first ever banking product launched on Facebook globally. And it still is unique in that space. B2B Branch free banking is also a unique initiative from ICICI which was crippled because of the KYC Paper work needed, and the physical presence that KYC required. But with eKYC becoming the new norm, B2B is poised to become the low cost banking channel of the future. Even in terms of payments, ICICI eToll solution for Toll payment in highways was the first in India, launched almost a year back. Its only now that a few other banks are getting their act together in this space.
The FinTech revolution is going to impact banks around the world in dramatic ways, and ICICI is well positioned to adapt to the new world. There are many who look at the cutting edge of FinTech as just blockchain, distributed ledgers, etc. But FinTech is about a lot more than that - and there are huge areas that are ripe for exploitation today. ICICI is doing a great job in being a first mover in those areas.
The aggression that's there in the ICICI DNA has helped it position itself in a sweet spot for the future. And I must say, it may even save ICICI some blushes in the lending space!
Skate to where the puck will be - not where the puck was. And ICICI very much is skating to where the puck will be.
ICICI Bank - India's best positioned bank
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