Fancy shopping malls cater to newly-enriched consumers

ICICI Bank, India's second-biggest commercial lender, is planning to raise up to 35bn rupees ($775m; �415m) on the New York Stock Exchange.

The money will fund its expansion on the back of an 85% growth in consumer lending during 2003.

The Industrial Development Bank of India is also eyeing a move into the consumer business. as early as April.

The state-owned IDBI has hitherto concentrated on commercial lending, but expects to be reorganised so it can open up to 100 branches for retail banking, chairman M Damodaran told reporters.

IDBI believes its access to cheap public finance will give it an edge in the consumer market.

Boom time

April is also the probable timeframe for ICICI's share sale.

The flotation will be the biggest by a private Indian company since Reliance Petroleum raised almost 22bn rupees in 1993.

The bank is not only focusing on consumers; the new money will also underpin a push further into industrial lending.

But despite the healthy growth in that sector, it is the appetite of India's burgeoning middle class for credit which is most impressive.

The shining shopping malls which now dot India's big cities are full of young and middle-aged people spending money borrowed at what are, for India, rock-bottom interest rates.

Banks outside India are also keen for a piece of the action.