Friday, August 24, 2012

INDIA’S LARGEST PRIVATE SECTOR BANK

IT’S NEITHER AN EXTREME OF ADVENTURISM NOR AN EXTREME OF CONSERVATISM, THE APPROACH THAT INDIA’S LARGEST PRIVATE SECTOR BANK, ICICI BANK, NOW SEEMS TO FOLLOW IS THE MIDDLE PATH

In the meanwhile, to add to the irritation basket of Kochhar, on and off, there were numerous reports on how the bank’s so-called collection agents were harassing customers to recover dues; this wasn’t definitely helping brand ICICI and the collection agents were perhaps not the best brand ambassadors. Kochhar went for a swift course correction. Realising that the approach towards collection needed to be preventive than curative, the services of the collection agents were done away with. Now, collection is an in-house job; those who sell loans double up to follow up on the payments. ICICI Bank, once known for its aggressiveness, has in a way called off the frenzy of expansion and market share and settled down to the basics of safe banking. The very mantra of growth, market expansion, size and scale that mattered the most for the bank was put on hold and the operational focus was more oriented to balanced growth for sustainable and higher income.

Keeping in mind the September 2008 episode, the bank focused on a base of stable depositors, and hence more small savings (on which a mere 3.5% interest is paid) and current accounts (on which the banks have to pay zero interest) thereby turning the operations more profitable. The bank is neither operating with too much of adventurism nor with too much of conservatism. Though optimistic of the long-term scenario, the bank at present is taking cautious steps. Moreover, the customer orientation apparently has improved dramatically. The multiple calls that customers would receive from different sales people of ICICI Bank 24x7 have gone into a limbo.

Now, you really don’t have five different sales people calling you at five different hours of the day trying to push five different products of the bank. The entire approach has changed, with the focus now on a one-point contact to the customer. The “Khayaal Aapka” ad campaign is a step forward in customer focus and managing activism...but one that might not be needed in the near future.


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