Sandeep Bakhshi, ICICI Bank: Digital is core to our strategy
Commenting on the role played by digital initiatives in their growth, Sandeep Bakhshi said, “Digital is core to our strategy of integrating across ecosystems, smooth onboarding and transactions, growth in liabilities and analytics for risk selection.”
Sandeep Bakhshi, ICICI Bank: Sandeep Bakhshi led ICICI Bank, in its much-anticipated Q2 results on Saturday, has reported an all-time high quarterly net profit of ₹ 4,251 crore, exceeding market expectations - a significant 6-fold increase from Q2-2020.
The remarkable growth in profit, despite the ongoing COVID-19 crisis is largely catalyzed by digital banking initiatives, undertaken by India’s second largest private lender, to deliver a secure, fast and seamless banking experience to its customers.
Sandeep Bakhshi led ICICI Bank is at the forefront of digital transformation
The adoption of digital transformation at ICICI Bank predates the COVID-19 pandemic. The Bank has always been committed to enhancing customer experiences with innovative digital banking solutions.
“We have continued to enhance our digital delivery with a range of new offerings and solutions,” said Sandeep Bakhshi, ICICI Bank, MD & CEO on the Q2 FY21 analyst call.
ICICI Bank’s newly launched services and platforms such as video KYC and WhatsApp banking enjoy immense popularity among customers, as is substantiated by an increase in the uptake of these solutions.
In September 2020, the Bank used video KYC to onboard about 35% of salary account customers and 31% of credit card customers. This convenient onboarding process has also contributed to an increase in credit card spends to about 85% of pre-COVID levels.
The recovery in retail loan growth up to pre-COVID levels with a 13% y-o-y growth can be credited largely to seamless onboarding processes and digital sanctions. In fact, about 53% of personal loans and about 74% of credit card customers have been acquired through digital channels in H1-2021.
Commenting on the role played by digital initiatives in their growth, Sandeep Bakhshi said, “Digital is core to our strategy of integrating across ecosystems, smooth onboarding and transactions, growth in liabilities and analytics for risk selection.”
In September 2020, the Bank introduced new features on its WhatsApp banking platform which enable customers to open fixed deposits, pay utility bills and get access to trade finance details instantly. At present, about 2 million ICICI Bank customers use WhatsApp banking.
The high deposit growth recorded in this quarter (20% y-o-y increase in total deposits and a 18% growth in average CASA deposits) can also be credited to these efficient online banking services, among other factors.
Surge in Mobile Banking
The volume of mobile banking transactions has also increased by 65% y-o-y in Q2-2021, along with a massive 287% y-o-y increment in the value of merchants acquiring transactions on UPI.
ICICI Bank under the leadership of Sandeep Bakhshi has also recorded that over 90% of savings account transactions in the 6 months ended September 30, 2020, have been carried out on digital channels like mobile and internet banking, POS systems, and others.
Through its digital initiatives, ICICI Bank has been able to provide its customers the much-needed access to all essential financial services and in turn, create value for all stakeholders, despite the challenges of the pandemic lockdowns.
Digital Initiatives for Startups and Small Business Owners
The bank has also leveraged digital technologies to offer a host of solutions to entrepreneurs.
Sandeep Bakhshi added, “During this quarter, we launched the iStartup 2.0 programme, which enables startups to open current accounts digitally and instantly at the time of incorporation.”.
The platform provides essential banking and non-banking services as well as customized features, required by entrepreneurs to grow their businesses digitally. The Bank also rolled out additional digital initiatives such as forex on mobile through its InstaBIZ app for small business customers.
Promising Growth in Core Operating Profit
Despite the ongoing COVID-19 crisis, the quarter also saw a promising 18% y-o-y increase in the core operating profit of the bank, to ₹ 7,719 crore in Q2-2021 from ₹ 6,533 crore in Q2-2020.
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The numbers are testament to the success of Sandeep Bakhshi’s leadership and ICICI Bank’s implementation of digital banking solutions to deliver best-in-class, tech-enabled products and pave the way for uninterrupted growth in the new digital economy of the future
12:57 PM IST