While the bank is still open to lending opportunities in the infra space, it has reallocated the specialised staff to its larger wholesale banking vertical.
Private lender ICICI Bank disbanded its project finance division in September, owing to lack of fresh demand for loans in the infrastructure sector, according to an official.
While the bank is still open to lending opportunities in the sector, it has reallocated the specialised staff to its larger wholesale banking vertical that caters to clients across sectors.
"There was no need for a dedicated team to source loans due to lack of demand in the sector," a senior official said on condition of anonymity.
The bank has not made any formal statement on the development.
According to the bank's website, the division offered rupee term loans, foreign currency term loans, credit guarantee, external commercial borrowings, subordinated debt and mezzanine financing.
The bank's exposure to the infrastructure sector stood at 4.5 percent as on September 30, 2019.
The ongoing economic slowdown has led to lenders shifting their focus from large corporate borrowers to retail loans. As a result, the share of retail loans in the banks' total lending books has gone up.In order to expand its retail reach, ICICI Bank plans to add 450 new branches this financial year. Of this the bank has opened 346 branches in the April-September period. The lender also plans to hire around 5000 new employees to support its branch expansion plan this year.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.