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ICICI eyes big govt business in 01-02

Financial services major ICICI Ltd expects to generate business of Rs 80-100 billion from the central and state governments this year, the Financial Express newspaper reported on Thursday.

ICICI has formed a thrust group to cater to this segment from which it saw major business opportunites, ICICI's managing director K V Kamath told the paper in an interview.

Currently, about 25-30 per cent of ICICI's incremental loan approvals are to this segment, and it has started selling a range of technology-driven financial products and services to government undertakings, the report quoted Kamath as saying.

"There's a sea change in the way these government organisations are now seeing things," the report quoted Kamath as saying.

"They're understanding the importance of being on a commercial footing. There's tremendous awareness now, down to the municipality level."

Kamath said ICICI was talking to government arms to make their sales tax collections more efficient and improve the collection of power sector dues.

It is entering into deals with various municipalities and state-owned firms to which it will extend funds and also help in finding investments for infrastructure projects such as water supply and sewerage improvement services.

The New York Stock Exchange-listed ICICI has also extended its online bill payments services to Karnataka's power transmission agency.

ICICI currently caters to clients in about 10 states including Andhra Pradesh, Gujarat, Karnataka and Maharashtra and will cover more states in the near future.

Kamath said in the April-June quarter this segment offered business opportunities, which compensated for the slower growth from other sectors that have been hit by an economic slowdown.

ICICI's shares were little changed at Rs 53 in early trade while the benchmark Bombay index was flat.

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