Are the Dark Clouds for the Real? ; the Buzzword at the Country's Second-Largest Bank, Which Became Famous for Its Scorching Growth Rates, Is 'Measured Growth', a Euphemism for Losing Steam. Here's What Prompted Icici Bank's Strategic Shift.

Summary

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There's a joke doing the rounds among Mumbai bankers: a committee was formed to create a race horse that would run at 80 kmph. The suggestions came flying in thick and fast the horse should have long legs, a large neck, trimmed muscles... and so on. Finally, when all the suggestions were implemented, the race horse resembled a camel and struggled to run at 20 kmph.

The committee realised its mistake and this time set out to make a race horse out of the camel. Some members suggested: Cut the hump. Others argued passionately to reduce the length of its legs. Then, someone pointed out: If we cut the hump and the legs, the camel will surely die. But that left the committee with an even more intractable question: what was it to do with the camel?

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Are the Dark Clouds for the Real? ; the Buzzword at the Country's Second-Largest Bank, Which Became Famous for Its Scorching Growth Rates, Is 'Measured Growth', a Euphemism for Losing Steam. Here's What Prompted Icici Bank's Strategic Shift.

And guess who are laughing at the joke? ICICI Bank's rivals, of course. Why? The slowdown in the country's till recently sizzling retail banking segment has brought the high-flying bank back to sea level. Its business grew a paltry 6.9 per cent during the April- June 2008 quarter. By comparison, the public sector State Bank of India grew at 27 per cent and HDFC Bank at an incredible 80 per cent. The reasons aren't difficult to fathom. The retail segment, which is close to 60 per cent of ICICI Bank's portfolio, is feeling the pinch o...

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