ICICI Bank's sticky assets: Retail Finance

The retail finance has contributed to the maximum in the composition of gross non-performing assets(NPA) for the country's second largest lender, ICICI Bank (ICICIBANK.NS : 747.7 0), during the fiscal 2008-09. The retail finance portfolio has added Rs 7,150 crore or almost 73% of the total sticky assets estimated to be around Rs 98 billion in 2008-09, said ICICI Bank's annual report.

In 2007-08 the sticky assets from retail portfolio was pegged at Rs 55.16 billion or 72.7% of the total NPA valued at Rs 7,588 crore.

The other industries, primarily including construction, drugs and pharmaceuticals, agriculture and allied activities, has contrubuted the second largest amount of sticky assets for the repoprting year.Together these segments have contributed Rs 1,578 crore or 16.1% to the bank's NPA.

The annual report of the bank for the fiscal 2008-09 says the retail fianc includes loans taken by the borrowers in segments like home, automobile, commercial business. two-wheeler, personal and credit cards. It also includes NPAs in dealer funding and developer finance portfolios of Rs 44 crore at year-end fiscal 2009.

In other segments that showed significant increase in NPAs in 2008-09 compared to the previous year include chemicals and fertilizers (2.%), textiles (1.8%), wholesale/retail trade (1.5%) services/finance (1.3%) and shipping (1%), automobiles(0.3%) .

During fiscal 2009 the bank has restructured loan aggregating Rs 1,115 crore extended to 996 borrowers which included 962 retail mortagage borrowers.

In fiscal 2008 the bank had restructured lioan aggregating Rs 1,676 crore. At the ear end fiscal 2009 the bank had received proposals for restructuring of loans aggregating Rs 2,003 crore from 41 borrowers, which were under process.