INSUBCONTINENT EXCLUSIVE:
MUMBAI: Private banks with a substantial exposure to consumer business, especially unsecured loans like credit cards and personal loans, are
bearing the brunt of investor fear who expect some of these loans to turn sour due to a sharp slowdown in economic activity.
HDFC Bank and
ICICI Bank the two lenders with substantial exposure to consumer loans are being scrutinised for after effects of likely job losses and
salary cuts due to any economic slowdown caused by the unprecedented corona pandemic
ICICI Bank also lost 4% of its value on Friday but registered a smart recovery to end 1.73% higher
the leader in consumer finance and makes 24% of its earnings from this business
More importantly at 17% of its loan book it has the highest exposure to unsecured retail credit compared to peers ICICI and Axis banks for
whom it makes 9% of their loans.
