ICICI Bank puts ‘high-risk’ loans on the block

ICICI Bank is understood to have sounded off a couple of foreign banks to buy out its Rs 2,000-crore small-ticket personal loans (STPL) portfolio, it is reliably learnt. Foreign banks such as Deutsche Bank, Standard Chartered and Barclays are understood to have been approached by the bank to pick the portfolio. ICICI Bank has decided to exit this ‘high-risk’ space a couple of months ago owing to the rising defaults in the segment. Currently, ICICI’s collection agency is handling the portfolio until it identifies a suitable buyer, it is learnt. The bank’s total STPL portfolio size is estimated to be around Rs 3,000 crore, of which the bank intends to sell Rs 2,000 crore. By acquiring the portfolio, new entrants in the retail banking space will be able secure a foothold in the market. Almost 70% customers in the portfolio will be good customers and it will enable the player to sell other products to the same customers.