One of India’s auto-loans major and the largest private sector bank, ICICI Bank has decided to source two-wheeler loans only through its branches and not at the dealers' end.

The bank has discontinued its two-wheeler loans at dealer's end effective August 15, 2008.  

Under its revised conditions, the two-wheeler loans now will only be available through its branches. However for cars, it would continue lending from the dealers’ showrooms.

According to the ICICI, The shift in the strategy is due to high operating costs.  

The latest move will enable us to leverage our branch network and also choose our customers, thereby preventing the chances of defaults, the bank added.

However, dealers and manufacturers feel that with leading players like ICICI, Citibank pulling out presence from retail outlets, would impact the two-wheeler business, which is already seeing a slowdown.

At present, ICICI Bank has nearby 1,400 branches in its network and distributing the auto loan at 24% interest rate.