Here’s a snippet from the latest issue of Outlook Money:
Following the recent judgment by the Delhi State Commission fining ICICI Bank Rs 55 lac for using goons to recover a vehicle loan, the bank had decided to cut down on small-ticket loans. Says a senior general manager at ICICI Bank,
We have cut down loans ranging between Rs 25,000 and Rs 35,000. The risk is certainly high in this segment … We feel that the market is still not mature enough to understand the issues related to the process of collection … Also, we have brought down the interest rate on these loans from 48% to 36%.
Wow! Make the market the scapegoat. Awesome corporate strategy.