Depositers Pull out RS.17K from ICICI since march

ICICI Bank is shifting focus away from wooing bulk deposits as part of a strategy to reduce its cost of resources. Over the last six months, the bank saw an exodus in deposits following a cut in the lending costs. In the first quarter ended June 30, ICICI Bank saw deposit outflow of Rs 10,000 crore. From March till October 10, deposits fell by nearly Rs 17,000 crore. At the end of March 2008, ICICI Bank had deposits aggregating Rs 2,44,431 crore, compared with Rs 2,34,461 crore at the end of the first quarter in the same financial year. The bank’s deposit base stood at Rs 2,27,384 crore as on October 10. The largest private lender in the country has been reportedly looking at cutting down its dependence on bulk deposits since March last year, given the rise in interest rates. The proportion of retail deposits, which was 43% in March’07, rose to 46.5% in March’08 and is currently close to 50%. The bank did not make any special efforts to renew its bulk deposits. Over the past few months, the bank has cut down its lending activity in retail banking and is focussing on current and savings accounts. When contacted, ICICI Bank officials declined to comment. On a sequential basis, the bank reported a marginal decline in advances in the first quarter. The advances at the end of June were Rs 2,24,146 crore, compared to Rs 2,25,616 crore at the end of March. But other big banks have registered a rise in deposits and advances portfolio in the first six months. HDFC Bank saw a deposit growth of nearly Rs 30,981 crore from March 31 to October 10 this year. Courtsy: 25 Oct, 2008, 1112 hrs IST, ET Bureau