New Delhi, Sept 3: ICICI Ltd, will shift its focus from lending to fee-based activities in order to reduce risk and improve profits, KV Kamath, financial institution's managing director has said."We plan to focus on fee-based activies like securitisation and corporate gurantee in order to de-risk our asset portfolio," Kamath said.
He said this kind of business was initially catered by banks but with ICICI moving towards universal banking this was a good opportunity to tap on.
There has been continous increase in the ICICI income from fees and commissions. It has increased from Rs 120 crore in 1996-97 to Rs 168 crore in 1997-98 and Rs 311 crore in 1998-99.
Even though this income as a percentage of total income has increased but still is a very small in the ICICI total business operations.
From 2.6 per cent of total income in 1996-97, it increased to 2.92 per cent in 1997-98 and to 4.24 per cent in 1998-99.
"ICICI will synergise its fee-based activities with its banking subsdiary ICICI BankingCorporation," Kamath said.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.
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