Working of ICICI Bank

PROJECT SUBMITTED TO

UNIVERSITY OF MUMBAI FOR PARTIAL COMPLETION OF THE

DEGREE OF

MASTER IN COMMERCE

UNDER THE FACULTY OF COMMERCE

BY

JAYESH GUPTA

MCOM -II (SEM-3)

ROLL NO: 306

UNDER THE GUIDANCE OF

ASST PROF MEGHA R YADAV

MATUSHRI PUSHPABEN VINUBHAI VALIA COLLEGE OF

COMMERCE

SHETH M.K. HIGH SCHOOL COMPLEX, FACTORY LANE,

BORIVALI (WEST) MUMBAI -400092.

DECEMBER 2023

ACADEMIC YEAR 2023-2024

1
 DECLARATION BY LEARNER

I the undersigned JAYESH GUPTA (ROLL NO: 306) here by, declare that the work embodied

in this project work titled “WORKING OF ICICI BANK ” forms my own contribution to the

research work carried out under the guidance of ASST PROF MEGHA R YADAV is a result of

my own research work and has not been previously submitted to any other University for any other

Degree/ Diploma to this or any other University.

Wherever reference has been made to previous works of others, it has been clearly indicated as

such and included in the bibliography.

I, here by further declare that all information of this document has been obtained and presented in

accordance with academic rules and ethical conduct.

Name and Signature of the learner

JAYESH GUPTA
Certified by

Name and signature of the Guiding Teacher

2
 MATUSHRI PUSHPABEN VINUBHAI VALIA COLLEGE OF COMMERCE
Sheth M.K. High School Complex, Factory Lane,
Borivali (west) Mumbai -400092.

CERTIFICATE

This is to certify that JAYESH GUPTA as worked and duly completed her Project Work for the
degree of Master in Commerce under the Faculty of Commerce in the subject of ADVANCED
FINANCIAL ACCOUNTING (MCOM -II SEMESTER-3) and his/her project is entitled “
WORKING OF ICICI BANK ” under my supervision. I further certify that the entire work has
been done by the learner under my guidance and that no part of it has been submitted previously
for any Degree or Diploma of any University.

It is her own work and facts reported by her/his personal findings and investigations.

Name and Signature of Guiding Teacher

Date of submission: December 2023

3
 ACKNOWLEDGEMENT

To list who all have helped me is difficult because they are so numerous and the depth is so
enormous.
I would like to acknowledge the following as being idealistic channels and fresh dimensions in the
completion of this project.
I take this opportunity to thank the University of Mumbai for giving me chance to do this project.
I would like to thank our Principal Prof V. Manikandan for providing the necessary facilities
required for completion of this project.
I take this opportunity to thank our Coordinator Prof V. Manikandan, for moral support and
guidance.
I would also like to express my sincere gratitude towards my project guide Asst Prof. Megha
Yadav whose guidance and care made the project successful.
I would like to thank my College Library, for having provided various reference books and
magazines related to my project.
Lastly, I would like to thank each and every person who directly or indirectly helped me in the
completion of the project especially my Parents and Peers who supported me throughout my
project.

4
 INDEX
CHAPTER HEADING PAGE NUMBER
NUMBER
1 Introduction 7
1.1 An Overview of Banking Industry 10
1.2 Organization Structure 14
1.3 Vision And Mission 15
1.4 Products And Services 16
2 Swot Analysis Of Icici Bank 23
3 Marketing Strategies 27
4 Competitors 31
5 Market Share 33
6 The Key Challenges 34
7 Terms Related To Banking 36
8 Key Features 43
9 Other ICICI Initiatives 76
10 Key Financial Ratios Of Icici Bank 83
11 Conclusion 84
12 Bibliography 85

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6
 1. INTRODUCTION

The banking industry in India has a huge canvas of history, which covers the
traditional banking Practices from the time of Britishers to the reforms period,
nationalization to privatization of banks and now increasing numbers of foreign
banks in India. Therefore, Banking in India has been through a long journey.
Banking industry in India has also achieved a new height with the changing times.
The use of technology has brought a revolution in the working style of the banks.
Nevertheless, the fundamental aspects of banking i.e. trust and the confidence of the
people on the institution remain the same. The majority of the banks are still
successful in keeping with the confidence of the shareholders as well as other
stakeholders. However, with the changing dynamics of banking business brings new
kind of risk exposure. The present study attempts to analyze the working process of
ICICI BANK.

ICICI Bank was established in 1996 by the Industrial Credit and Investment
Corporation of India, an Indian financial institution, as a wholly owned subsidiary.
The parent company was formed in 1955 as a joint-venture of the World Bank,
India's public-sector banks and public-sector insurance companies to provide project
financing to Indian industry. The bank was initially known as the Industrial Credit
and Investment Corporation of India Bank, before it changed its name to the
abbreviated ICICI Bank. The parent company was later merged into ICICI Bank.
ICICI Bank launched internet banking operations in 1998

ICICI's shareholding in ICICI Bank was reduced to 46 percent, through a public

offering of shares in India in 1998, followed by an equity offering in the form of
American Depositary Receipts on the NYSE in 2000. ICICI Bank acquired the Bank

7
of Madura Limited in an all-stock deal in 2001, and sold additional stakes to
institutional investors during 2001-02.

In the 1990s, ICICI transformed its business from a development financial institution
offering only project finance to a diversified financial services group, offering a wide
variety of products and services, both directly and through a number of subsidiaries
and affiliates like ICICI Bank. In 1999, ICICI become the first Indian company and
the first bank or financial institution from non-Japan Asia to be listed on the NYSE.

In 2000, ICICI Bank became the first Indian bank to list on the New York Stock
Exchange with its five million American depository shares issue generating a
demand book 13 times the offer size.

In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the
merger of ICICI and two of its wholly owned retail finance subsidiaries, ICICI
Personal Financial Services Limited and ICICI Capital Services Limited, with ICICI
Bank. The merger was approved by shareholders of ICICI and ICICI Bank in
January 2002, by the High Court of Gujarat at Ahmadabad in March 2002, and by
the High Court of Judicature at Mumbai and the Reserve Bank of India in April
2002.

ICICI Bank Limited is an Indian diversified financial services company

headquartered in Mumbai, Maharashtra. It is the second largest bank in India by
assets and third largest by market capitalization. It offers a wide range of banking
products and financial services to corporate and retail customers through a variety
of delivery channels and through its specialized subsidiaries in the areas of
investment banking, life and non-life insurance, venture capital and asset
management. The Bank has a network of 2,630 branches and 8,003 ATM's in India,
and has a presence in 19 countries, including India.
8
The bank has subsidiaries in the United Kingdom, Russia, and Canada; branches in
United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai
International Finance Centre; and representative offices in United Arab Emirates,
China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia. The company's
UK subsidiary has established branches in Belgium and Germany.

ICICI Bank is India’s largest private sector bank in market capitalization and second
largest overall in terms of assets. The bank has a network of 1,626 branches and
about 4,883 ATMs in India and presence in 18 countries.

The industrial credit and investment corporation of India limited (ICICI) was
incorporated in 1955 at the initiative of World Bank, the government of India and
representatives of Indian industry, with the objective of creating a development
financial institution for providing medium– term and long- term project financing to
Indian businesses. A.Ramaswami Mudaliar is elected as the first chairman of ICICI
Limited.

The banking industry in India has undergone a sea of change ever since the economic
form process was initiated. There is no doubt that the banking industry continues to
play a cardinal role in spread heading the economic activity of the country. From an
industry almost monopolized by the nationalized bank till the 90's it has now
emerged as a conglomerate of nationalized, private and foreign banks setting new
trends in the way banking is carried out. The deregulation in the interest rates, grant
of functional autonomy to the banks in the area of credit, entry of foreign banks and
emergence of new private banks has made the banking environment. The whole
Indian banking industry scenario is changing while the chunk of other total share in
bank credit continues to be dominated by public sector banks, the increase boost
given to foreign and private participation is expected to make banking more

9
challenging. Lately, Indian banks are diverting from their bread and butter business
of lending and accepting deposits, and are resorting to other related activities. Any
private or foreign banks is found to have spread its wings across a variety of business
starting from housing finance, credit finance, credit cards, investment banking,
internet banking etc. with a lot of thrust on retail and consumer loans to lending to
small and medium enterprises an agriculture. To sustain the market share and
maintain the profitability, banks including the nationalized ones are trying to
incorporate product diversity and with more focus on customer needs. Most of the
private banks are moving towards the `Universal Banking'. Universal Banking
means the banking in which the banks have all the financia l products and services
for its customers. Now there is a need to observe how these private banks are going
to apply the concept for customer satisfaction and for the growth of business in
emerging area of finance. The information collected was compared with ideal one to
find out major drawbacks and best practices too.

1.1 An Overview of Banking Industry

The Indian Banking history can be broadly categorized into nationalized private
banks and specialized banking institutions. The Reserve Bank of India acts as a
centralized monitoring system. Since the nationalization of banks in 1969, the
nationalized banks have acquired a place of prominence and has since, then seen
tremendous progress. The need to become highly customer focused has forced the
slow moving public sector banks to adopt a fast track approach. The liberalized
policy of Government of India permitted entry to private sector banks in the banking
industry. The major differentiating parameter that distinguishes these banks is the
level of service that is offered to the customer. The popularity of these banks can be
gauged by the fact that in a short span of time, these banks have gained considerable
10
customer confidence and consequently have shown impressive growth rates. With
efficiency being the major focus, these banks have
leveraged on their strength and competencies viz. management, operation efficiency
and flexibility, superior product positioning a higher employee productivity skill.
The private banks with their focused business and services portfolio have a
reputation of being niche player in the industry. A well chalked out integrated
strategy has allowed these banks to operate 70% of their business to urban areas, this
statutory requirement has translated into lower deposit mobilization costs and higher
margins to public sector banks. Banks are increasingly finding that most viable way
of differentiating themselves will be to successfully manage customer relationship
and enhance the overall customer experience. In future the market space will see
banks and non-banks striving to seek opportunities to profit, in the wake of product
customization.

Universal Banking:

Ever since the financial sector reforms were introduced in early 90’s the banking
sector saw the emergence of new generation private sector banks. These banks
gained at most popularity as they have technology edge and better business models
when compared to public sector banks and the most important thing is they are able
to attract more volumes simply because they meet their customer’s requirements
under one roof. If the newer players can do that then why can’t the bigger players
like the Financial Institutions (FIs) try their hands on it? Here comes the concept of
universal banking, its emergence, merits and related issues. The present paper
focuses on understanding the co ncept of universal banking in India and attempts to
explain the regulatory role, regulatory requirements, key duration and maturity

11
distinction and lastly the optimal transition path. Universal Banking, means the
financial entities – the commercial banks, Financial
Institutions, NBFCs, - undertake multiple financial activities under one roof, thereby
creating a financial supermarket. The entities focus on leveraging their large branch
network and offer wide range of services under single brand name.
Universal Banking generally takes three forms:
 In-house Universal banking. E.g. Germany, Switzerland.
 Through separately capitalized subsidiaries. E.g. England, Japan.
 Operations carried through a holding company. E.g. USA, Japan.
In general, Universal Bank is a name given to banks engaged in diverse kind of
banking business which includes not only services related to savings and loans but
also investments, offering wide range of financial services, beyond commercial
banking and investment banking, insurance etc. If specialized banking is the one end
universal banking is the other. This is most common in European countries and this
concept is widely popular in countries like USA but is about to take-off officially in
India, as the definition of Universal Banking is yet to be established clearly and
conclusively. A narrow view of Universal banking could be activities pertaining to
lending plus
investments in bonds and debentures. A broader view could include a basket of all
the financial activities including insurance. The characteristics of Universal Banking
heavily depend of two most important factors, namely:
- The specific country’s diversification rules and regulations.
- The strengths of individual banks in enlarging the scope of the activities in the
various
segments of financial services industry.

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Retail Banking:

Retail Banking Group has emerged as the fastest growing segment within ICICI
Bank Ltd. Within RBG, retail channel and liability group mobilize the much-needed
resources at highly competitive rates through deposits and bonds and retail assets
and products group deploys the available resources through various channels like
Home Loans, Personnel Loans, Consumer Durable Loans, Commercial Vehicles
Loan etc. in the retail assets. Across the world retail banking has been the high
volume- low value business proposition. Enormous amount of resources are required
to acquire and service customer in terms of infrastructure and operation. Given the
current stage of evolution of the Indian market, we have adopted an organization
model that continuous to focus on product and on achieving attention and dedicated
services, and at the same facilitate the widening and deepening of customer
relationships. Small enterprises and emerging corporate segment has strong
synergies with the retail business in terms of customer profile and servicing is
done through technology platform and retail branches.

ICICI MILESTONES

 1988: Promoted TDICI – India’s first venture capital company.

 1996: ICICI Ltd became the first company in the Indian financial sector to
raise GDR.
 1999: ICICI becomes the first Indian company to get listed on the NYSE
through an issue of American depository shares.
 2000: ICICI BANK became the first commercial bank from India to get its
stock listed on the NYSE.

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 1.2 Organization Structure
 Retail banking.
 Wholesale banking
 Project finance and special assets management
 International business
 Corporate bank

Retail banking is banking in which banking institutions execute transactions

directly with consumers, rather than corporations or other banks. Services offered
include savings and transactional accounts, mortgages, personal loans, debit cards,
and credit cards.

Wholesale banking is the provision of services by banks to the likes of Mortgage

Brokers, large corporate clients, mid-sized companies, real estate developers and
investors, international trade finance businesses, institutional customers (such as
pension funds and government entities/agencies), and services offered to other banks
or other financial institutions.

Project finance is the medium- to long-term financing of infrastructure and

industrial projects based upon the projected cash flows of the project rather than the
balance sheets of the project sponsors.

Special assets management

1. The management of a client's investments by a financial services company,

usually an investment bank. The company will invest on behalf of its clients
and give them access to a wide range of traditional and alternative product
offerings that would not be to the average investors.
14
 2. An account at a financial institution that includes checking services, credit
cards, debit cards, margin loans, the automatic sweep of cash balances into a
money market fund, as well as brokerage services.

An International Banking Facility (IBF) is a separate account established

by a U.S. bank, or a US branch/subsidiary of a foreign bank, or an Edge Act
Corporation in the United States to offer services to only non-US residents
and institutions. The services offered include deposit and loan services. (Note,
an IBF is not necessarily a separate legal entity.)

One Corporate Centre is an office skyscraper in Pasig City, Metro Manila,

Philippines. It is the 13th-tallest building in the country and Metro Manila as well
[3]
with a height of 202 meters (662.73 feet) from ground to tip of architectural
antenna. The building has 45 floors above ground including 7 floors for commercial
purposes, and 9 basement levels for parking

1.3 Vision And Mission

VISION

 To ensure most cost effective power for sustained growth of India.

 To provide clean and green power for secured future of countrymen
 Constituent associates & stakeholders.
 To continuously upgrade & update knowledge & skill set of its human
resources.
 To achieve excellence in every activity we undertake

MISSION

15
We will leverage our people, technology, speed and financial capital to:

 Expand the frontiers of our business globally.

 Play a proactive role in the full realization of India’s potential.
 Maintain high standards of governance and ethics.
 Create value for our stakeholders.
 To ensure most cost effective power for sustained growth of India.
 To provide clean and green power for secured future of countrymen.
 To achieve excellence in every activity we undertake

1.4 Products And Services of Banking Accounts

1.4.1ACCOUNT

ICICI Bank offers a wide range of banking accounts such as Current, Saving, Life
Plus Senior, Recurring Deposit, Young Stars, Salary Account etc. tailor-made for
every customer segments, from children to senior citizens. Convenience and ease to
access are the benefits of ICICI Bank accounts.

 YOUNG STARS ACCOUNT

A special portal for children to learn banking basics, manage personal finances and have a lot of
fun.

 BANK@CAMPUS

This student banking services gives students access to their account details at the
click of a mouse. Plus, the student gets a cheque book, debit card and annual
statements.

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  SAVINGS ACCOUNT

Convenience is the name of the game with ICICI bank’s savings account.
Whether it is an ATM/debit card, easy withdrawal, easy loan options or
internet banking, ICICI bank’s saving account always keep you in touch of money.

 FIXED DEPOSITES

ICICI Bank offers a range of deposit solutions to meet varying needs at

every stage of life. It offers a range of tenures and other features to suit
all requirements.

1.4.2 INSURANCE

The ICICI group offers a range of insurance products to cover varying

needs ranging from life, pensions and health, to home, motor and travel
insurance. The Products are made accessible to customers through a wide
network of advisors, banking partners, corporate agents and brokers with
the added convenience of being able to buy online.

 LIFE INSURANCE
The ICICI group provides the many life insurance products through ICICI Prudential
Life Insurance Company.

 GENERAL INSURANCE

17
The ICICI group provides the many general insurance products like motor, tr a ve l
a nd h o me in s u ra n c e t h r o u g h IC I C I Lo mb a rd G e ne ra l I ns u r a nc e
Company.

1.4.3 LOANS

ICICI bank offers a range of deposits solutions to meet varying needs at every stage
of life. It offers a range of tenures and other features to suit all requirements.

 HOME LOANS

The No. 1 Home Loans Provider in the country, ICICI Bank Home Loans offers
some unbeatable benefits to its customers - Doorstep Service, Simplified
Documentation and Guidance throughout the Process. It’s really easy!

 PERSONAL LOANS

ICICI Bank Personal Loans are easy to get and absolutely hassle free. With
minimum documentation you can now secure a loan for an amount up to Rs. 15 lakhs.

 VEHICLE LOANS
1. Car loans

Network of more than 2500 channel partners in over 1000 locations. Tie -ups
with all leading automobile manufacturers to ensure the best deals. Flexible
schemes & Quick processing is the main advantages are here. Avail attractive
schemes at competitive interest rates from the No 1 Financier for:-
2. Two wheelers loans

18
Finance facility up to 90% of the On Road Cost of the vehicle, repayable in
convenient repayment options and comfortable tenors from 6 months to 36 months.

1.4.4 CARDS

ICICI Bank offers a variety of cards to suit different transactional needs.

Its range includes Credit Cards, Debit Cards and Prepaid cards. These cards offer
you convenience for financial transactions like cash, withdrawal, shopping and travel.
These cards are widely accepted both in India and abroad.
 CREDIT CARD
ICICI Bank Credit Cards give you the facility of cash, convenience and arrange of
benefits, anywhere in the world. These benefits range from lifetime free cards,
Insurance benefits, global emergency assistance service, discounts, utility payments,
travel discounts and much more.

 DEBIT CARD
The ICICI Bank Debit Card is a revolutionary form of cash that allowscustomers to
access their bank account around the clock, around theworld. The ICICI Bank Debit
Card can be used for shopping at more than3.5 Lakh merchants in India and 24
million merchants worldwide.

 TRAVEL CARD
ICICI Bank Travel Card. the Hassel free way to travel the world. Traveling with US
Dollar, Euro, Pound Sterling or Swiss Francs; Looking for security and convenience;
take ICICI Bank Travel Card. Issued in duplicate. Offers the Pin based security. Has
the convenience of usage of Credit or Debit card.
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1.4.5 INVESTMENT PRODUCTS
Along with Deposit products and Loan offerings, ICICI Bank assists you to manage
it’s finances by providing various investment options ranging from ICICI Bank Tax
Saving Bonds to Equity Investments through Initial Public Offers and Investment in
Pure Gold. ICICI Bank facilitates following investment products:

•Government of India Bonds

•Investment in Mutual Funds
•Initial Public Offers by Corporate
•Investment in "Pure Gold"
•Foreign Exchange Services
•Senior Citizens Savings Scheme

TRADE SERVICES: ICICI Bank offers online remittances as well as online

processing of letters of credit and bank guarantees.

ASSET MANAGEMENT: Prudential ICICI Asset Management Company offers a

wide range of retail mutual fund products tailored to suit varied risk and maturity
profiles.

CASH MANAGEMENT: ICICI Bank offers a complete Range Of highly

customized solutions for managing both the collections and payments requirements
of clients by leveraging technology. Daily customized transactions reports and real
time web-enabled downloads, provide on-tap information facilitating effective
working capital management.

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CORPORATE BANKING: ICICI Bank offers comprehensive and customized
financial solutions for its corporate clients, including rupee and foreign currency
debts, working capital credit, structured financing syndication and transaction
banking products and services.

INTERNET BANKING: Internet banking is available to all ICICI Bank savings

and deposit account holders, credit card, demat and loan customers. Internet banking
service offers customers a world of convenience with services such as balance
enquiry, transaction history, account statement, bill payments, and fund transfers and
accounts related service requests.

ATMS: With more than 2500 ATMs across the country, ICICI Bank has one of the
largest ATM networks in India.

PHONE BANKING: Phone banking offers 24*7 services across Liability, asset and
investment products to both retail and corporate customers.

NRI-BANKING: A gamut of services to take care of all NRI banking needs

including deposits, money transfers and private banking.

MONEY 2 INDIA: A complete range of online and offline money transfer solutions
to send money to India.

PROPERTY: For millions of home buyers across the country, ICICI Bank offers
not just great deals on home loans but also a wealth of expert advice.ICICI Bank

21
offers home search service which can help a customer identify the property of his
choice based on his budget and other requirements.

DEMAT ACCOUNTS: ICICI Bank’s demat services after unique features like e-
constructions, consolidation, digitally signed statements, mobile requests and
corporate benefit tracking.

RURAL BANKING: Bank offers technology-based solutions, financial

innovations and multiple delivery channels to meet the financial needs of rural areas

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2. SWOT ANALYSIS OF ICICI BANK

Introduction to SWOT analysis.

The overall evaluation of the company’s Strength, Weakness, Opportunities and

Threats is called as SWOT Analysis. The external environment analysis of any
business will give you the opportunities and threats facing the business. The external
environment consists of two parts:

STRENTH

 India’s Second Largest Bank and First Largest Private Sector Bank.
 ICICI Bank is the second-biggest bank in terms of overall assets and market
share.
 ICICI Bank has a Revenue of Rs. 67803 Crores (US 9.5 Billion).
 ICICI Bank has 84922 Employees.
 ICICI’s total assets are Rs. 4062.34 billion and reported a cumulative after-
tax income of Rs. 51.51 billion, in 19 countries.
 According to financial analysts, one of the major strengths of ICICI bank is
its solid and consistent balance sheet and financial statements.
 In many banking and financial services, ICICI bank has first-mover
advantage. ICICI Bank is India’s first bank to launch full mobile banking and
jewelry card solutions.
 The bank has about 2,567 branches and 8003 ATM’s in PAN India.
 ICICI Bank is India’s first bank to connect life-style benefits to banking
services for exclusive transactions and tie-ups with industry-leading brands.
ICICI Bank has the longest operating hours and additional facilities available
at ATMs attracting customers.

23
  ICICI’s marketing and advertisement campaigns are of decent scope
compared to other Indian banks.
 ICICI Bank Services are good.
 ICICI Bank is maintaining good Customer Relations.
 Employees of ICICI Bank show more courtesy.
 Right strategy for the right products.
 Superior customer service v/s competitors.
 Great Brand Image
 Products have required accreditations.
 High degree of customer satisfaction.
 Good place to work
 Management philosophy and commitment to maximize shareholders returns
 Upgraded product design and development facilities to develop new products
and aid diversification.
 Ongoing activities to support up gradation of operational performance and rise
in productivity
 Team of talented and committed professionals available to improve
company’s
 performance.

WEAKNESS

 Lower response time with efficient and effective service

 Some gaps in range for certain sectors.
 Customer service staff needs training.
 Processes and systems, etc.
 Management covers insufficient.
24
  Competition from other players
 Customer service for the ICICI segment is not doing well when it comes to
complaining resolution.
 Customer disputes against ICICI are high.
 The ICICI bank has the most strict debt and loan repayment programs, and
interest payments programs. They hire a third-party agency to handle the
management of recovery.
 Consumer attack and harassment issues often arise while recovery and credit
payment notices are sent well before the deadlines that bother the customers.
 The charges for the banking operation are comparatively growing.
 ICICI employees are a bank in the utmost stress due to the management’s
aggressive policies to win ahead in the race. In future years this can result in
lower productivity.

OPPORTUNITIES
 Profit margins will be good.
 Could extend to overseas broadly.
 New specialist applications.
 Could seek better customer deals
 Fast – track career development opportunities on an industry – wide basis
 Exploration of new customer bases viz. rural customers
 Up-gradation of the system and professionals
 In the next three years, Banking Sector growth is projected to rise at a rate of
17 percent.
 In rural areas, the idea of saving in banks and investing in financial products
is growing, as more than 62 percent of India’s population is still in rural areas.

25
  ICICI Bank plans to open 1500 new branches over the next four years.
 Because of its financial resources, ICICI will buy small and non-performing
banks.
 ICICI bank is expected to have a credit growth of 20 percent in the coming
years.
 ICICI bank retains the minimum sum of unrealized assets.
.
THREATS

 RBI allowed foreign banks to invest in Indian banking up to 74 percent.

 Banks in the government sector are pushing to modernize the capacity to
reduce customers moving to new age banks.
 HDFC is ICICI’s biggest rival, and other emerging banks such as AXIS,
HSBC place a significant threat.
 NBFC and Mobile Payment Wallets are also emerging and become
competitors of ICICI Bank.
 The micro-financing groups have a large share in rural areas.
 Though the acquisition of customers is high on one hand, the unsatisfied
customers are rising and making them turn to other banks.
 Emerging Technology is also a major threat to the Banks.
 Cryptocurrency is also a threat to banks.
 Legislation could impact.
 Great risk involved
 Very high competition prevailing in the industry.
 Vulnerable to reactive attack by major competitors
 Lack of infrastructure in rural areas could constrain investment

26
  High volume/low cost market is intensely competitive.
 Constant pressure to be cost competitive to meet customer expectations
 Relentless pressure to maintain profitability

3. MARKETING STRATEGIES

Market Strategy:

ICICI Bank uses the concept of Universal Banking.

Universal Banking Concept: In universal banking, large banks operate extensively

in networks of branches, provide many different services, hold several claims on
firms (including equity and debt), and participate directly in the corporate
governance of firms that rely on the banks for funding or as insurance underwriters.
It means the ability to offer i.e. sell and underwrite all the types of products and
services to any set of clients, either through a single or through a group of companies.
The practice of Universal Banking varies across several countries. India faces a very
high regulatory burden although now a conglomerate structure of the universal
banking has already been permitted .Many international players like ABNAMRO,
Citigroup, HSBC, Deutsche Bank, JP Morgan Chase, Lehman Brothers have
realized the benefits of Universal Banking. The ICICI Bank has also joined these
international players. The ICICI Bank functions as a universal bank through itself
and its associate companies in the areas of corporate finance, commercial banking,
personal banking, investment banking, asset management, investor services and
insurance. The Universal Banking provides competitive advantage in the current
scenario through large product suite, diversified resource base, Economies of scale
and scope, Optimization of human and financial capital. In a span of just four years,
the ICICI Bank has emerged as a consumer banking behemoth. With a retail book
27
of over Rs 56,000 crores (Rs 560 billion) and a market share that is the envy of
competition -- it has a share of over 30 per cent – The ICICI Bank today has reached
a commanding position. The bank boasts of the widest integrated technology
platform in the country and only a fourth of its business takes place at its branches
and subsidiaries. Its legacy of non-performing assets (NPAs) -- for which it has been
rated below its peers earlier -- is now almost history with net NPLs (non-performing
loans) down to 2 per cent. 14

Armed with a much stronger balance sheet, the ICICI Bank is aggressively foraying
into overseas markets and also has an eye on the rural India. Rural India is an
opportunity, somewhat premature, but in the next 12-18 months the bank’s strategy
will be seen there. Bank is looking at new agri lending as something that is directed;
it's a viable business proposition, but it has to be driven very carefully. The bank
can't have branches there because that is not workable in terms of costs. The solution
to this problem is to partner with the micro-credit institutions, corporate providing
inputs or buying products from the farmer and self-help groups.

Major Steps Taken: In 2001 ICICI acquired the Bank of Madura (est. In 1943). The
Bank of Madura was a Chettiar bank, and had acquired the Chettinad Mercantile
Bank (est. In 1933) and the Illanji Bank (est. in 1904) in the 1960s. In 2007 ICICI
amalgamated the Sangli Bank, which was headquartered in Sangli, in Maharashtra
State, and which had 158 branches in Maharashtra state and another 31 in Karnataka
State. ICICI also received permission from the government of Qatar to open a branch
in Doha and from the US Federal Reserve to open a branch in New York city. ICICI
Bank Eurasia opened a second branch in St. Petersburg. In 2008 the ICICI Bank
launched iMobile, a comprehensive Mobile banking solution. iMobile is considered
to be a breakthrough innovation in the Indian Banking which allows a customer to

28
do all possible transactions through a GPRS-enabled mobile phone easily and
conveniently.

Global Market Strategy:

The global opportunity spectrum is changing dramatically, and in the next three
years, the bank’s global business will contribute one-third of the book top line and
bottom-line. Today it's about only 10-12 per cent. The NRI (people living abroad) is
a great customer and the other is the Indian corporate who is globalising -- either in
the trade business or is setting up businesses abroad. Bank’s USP (unique selling
proposition) is a unique technology; it can get customers to talk to his constituents
online. The NRI is an interesting link because today he has tremendous needs in
India; he wants to remit money, purchase a commodity, buy a home, especially the
H1 visa guys. This year 10 per cent of the home loans will be lended to NRIs. In the
United Kingdom the ICICI bank have a partnership with Lloyds Bank and are
present in 30 branches there, promoting joint products, and they get new customers.

In the United States the ICICI bank have a tie-up with Wells Fargo and their
customers can start a remittance into India from any channel.

Advertising Strategy: Amitabh Bachchan as brand ambassador of ICICI: Under the

agreement, Mr. Amitabh Bachchan endorsed and promoted all the products and
services offered by ICICI and its Group companies for a period of two years.

During his term as the brand ambassador, he played a key role in all major brand and
product communication by ICICI. He endorsed the ICICI brand through corporate
and product campaigns on television, print and outdoor medium. Mr. Bachchan also
participated in select events such as new product launches, various campaigns, and
customer reward programmes etc.

29
ShahRukh Khan as global brand ambassador of ICICI: After Mr. Bachchan the
ICICI Bank has decided to resort to the celebrity endorsement route to promote its
brand. Almost two-and-a-half years since superstar Amitabh Bachchan endorsed the
ICICI brand, the company has signed up Shah Rukh Khan as its global ambassador.
Shah Rukh Khan whose increasing global popularity gives synergy to the growing
global presence of ICICI Bank. Shahrukh Khan is a truly global Indian who
embodies the Indian winning spirit in a true sense. The energy and innovation which
Shahrukh Khan represents coupled with his popularity both in India and abroad
make him the ideal choice for the ICICI Bank, particularly as the Bank makes its
global forays. Within a short span of four years, the ICICI Bank has established its
presence in 12 countries including UK, Canada, US and the Middle East.

30
 COMPETITORS

Competitors of ICICI Bank: Its nearest competitors in the private banking sector are
HDFC Bank and AXIS (UTI) Bank. As compared to ICICI Bank HDFC is
frenetically seeking to shrug off the image of being a one-product company (home
loans), by using synergies that exist with its bank to foray into various areas like e-
broking, mutual funds, and insurance. For ICICI Bank, it is imperative that it moves
away from the high-risk, low-return business of project finance.

Universal Banking, ICICI Style ICICI: Bonds, loans, corporate finance, and ICICI
Web Trade: Online stock trading infrastructure finance. ICICI Bank: Retail and
corporate banking,

ICICI Home: Housing finance and cash management ICICI Capital: Financial
products marketing ICICI Securities: I-Banking, corporate and distribution finance,
and advisory

ICICI Prudential: Life Insurance joint

ICICI Brokerage: Broking and equity venture research

ICICI Lombard: General Insurance joint

ICICI Venture: Private equity investments venture

ICICI Infotech: Software solutions and IT-

ICICI Kinfra: Infrastructure financing in enabled services

ICICI Personal Financial Services: Retail ICICI Winfra: Infrastructure financing in

West loan distribution

ICICI International: Offshore investment

31
ICICI Knowledge Park: Infrastructure and fund management and support facilities

ICICI is still puny when compared to HDFC but the objective is very clear : grow
the business, even if it has come at HDFC's cost. Kalpana Morparia, Executive
Director, ICICI, maintains that they got into home loans simply because it's one of
the safest businesses to be in, given the low default rates. ''Besides, the market is
growing and there's space for all those who wants to enter.

AXIS Bank: In the case of Axis Bank, retail loans have declined from 30 per cent
of the total loan book of Rs 25,800 crores in June 2006 to around 23 per cent of loan
book of Rs.41,280 crore (as of June 2007). Even over a longer period, while the
overall asset growth for Axis Bank has been quite high and has matched that of the
other banks, retail exposures grew at a much slower pace.

Why ICICI Bank Leads: ICICI bank envisaged retail banking as a key area of
strategic emphasis for it — with the share of the retail business (both on the funding
and asset sides) growing strongly year after year— the share of retail business,
particularly retail assets. It appears to be following a business strategy that is quite
different from the high-volume and commodity-style approach of AXIS Bank and
HDFC Bank. That strategy also has its pluses in terms of the relatively higher
margins in some segments of the retail business and the in-built credit risk
diversification (and mitigation) achieved through a widely dispersed retail credit
portfolio. ICICI Bank has been able to maintain the quality of its loan portfolio for
a decent time period now.

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 5. MARKET SHARE OF ICICI BANK

ICICI Bank, India's second-largest bank, is comfortable with a fall in market share
as it rebalances its liabilities, and will be well placed to capitalize on opportunities
when market conditions improve, its chief executive said.

"We are allowing for a correction to happen in our liability mix. If that warrants
some recalibration of our market share, we are comfortable," chief executive K.V.
Kamath said in an interview for the Reuters India Investment Summit.ICICI, which
weathered a storm about its health when investors grew worried about its exposure
to the global financial crisis after the collapse of Lehman Brothers in mid-
September, has slowed lending as loan defaults rise.ICICI's share of deposits and
loans in the Indian banking system has slid to 6.5 per cent as at September 2008 from
8.7 per cent in March 2007, according to three brokerages polled by Reuters.

33
 6. THE KEY CHALLENGES

ICICI Bank Ltd’s takeover of Bank of Rajasthan Ltd (BOR) will have to clear a new
regulatory hurdle before it can be completed, according to a senior official in the
industry ministry. Most banking mergers can move ahead once they get a green
signal from the Reserve Bank of India (RBI), but the deal between India’s largest
private sector lender and the troubled regional bank will need to be cleared by the
government as well because of the provisions of a controversial policy that
categorizes ICICI Bank as a foreign-owned one; despite its local presence and Indian
management. “The merger needs the approval of the FIPB (Foreign Investment
Promotion Board) under Press Note 3.Under the Press Note 3 of 2009 series, if the
ownership of an existing Indian company is transferred to a non-resident entity, as a
consequence of transfer of shares to nonresident entities through amalgamation,
merger or acquisition, then it would require FIPB approval. Private sector lenders
ICICI Bank and HDFC Bank Ltd were defined as foreign-owned under the new rules
since more than half their equity is owned by foreign entities, including foreign
institutional investors, who have no board presence or say in company policy. This
regulation is applicable in sectors with foreign direct investment (FDI) caps, such as
defense production, private sector banking, broadcasting, commodity exchanges,
insurance, print media, telecommunications and satellites, according to the press
note. Any foreign firm trying to gain control of local companies needs the prior
approval of FIPB.A spokesperson for ICICI Bank said the bank would not comment
on any issue relating to BOR till the conclusion of its board meeting on 23 May.
At ICICI Bank, the selection process aims at getting applicants who are likely to
succeed at various roles in the Bank. The Endeavour is to select people who have a
high service orientation, are passionate about their career goals, and who display
integrity and ethics in all engagements.
34
The growth in the balance sheet has come to a complete halt compared to a 40%
average annual growth it posted in the period from 2005-08. The size of bank's
balance sheet declined by 5.1% in FY 2009. In the days of the economic boom, the
bank's growth was fuelled by an unprecedented growth in retail loans. In fact, even
at the end of FY 2009, retail loans constituted 49% of its total loan book – the highest
for any bank in India. As the slowdown started making its presence felt in the Indian
economy, the retail loan segment became rather risky. Interestingly, what had made
the bank is today causing it a great deal of concern.
Feeling the heat, ICICI Bank, wisely, made it clear last year that more attention will
be given to cleaning its books and taking stock of the situation than to grow. Not
surprisingly, there is merit in paying more attention to its rising non-performing
assets (NPA). The bank's net NPA jumped from 1.55% of its net advances at the end
of March 08 to 2.09% at the end of March 09. At current levels, it has the highest
NPAs, in percentage terms, across large banks in the country

35
7. TERMS RELATED TO BANKING

General

A depository is like a bank where securities are held in electronic form. In India,
there are two depositories- National Securities Depositories Limited (NSDL) and
Central Depository Services (CDSL).Under the depository Act, depositors can avail
to the services of the Depositories through Depository Participant (DP) such as ICICI
Bank. DP's are like bank branches wherein shares in physical form need to be
deposited for converting to electronic (Demat) form.

Dematerialization of Securities (Demat)

Dematerialization is the process of converting the securities held in physical form

(certificates) to an equivalent number of securities in electronic form and crediting
the same to the investor's Demat account. Dematerialized securities do not have any
certificate numbers and are detail only in quantity i.e. the securities are fungible.
Dematerialization of one's holdings is not mandatory. One can hold ones securities
either in Demat form or in physical form. One can also keep part of one's holdings
in Demat form and part in physical form. However, a selected list of securities
announced by SEBI can be delivered only in Demat form in the stock exchanges
connected to NSDL.

Sale/Delivery of Securities

Securities transaction can be settled in Demat form for the transactions done on stock
exchanges connected to NSDL at present NSE, BSE, CSE, DSE, LSE, BSE, OTCEI,
MCE,ISE & ASE are connected to NSDL. Trading in dematerialized securities is
done through broker just like trading in physical securities. Sell Dematerialized

36
Securities, The customer can sell their dematerialized securities in any of the stock
exchange linked to NSDL through a broker of their choice.

Purchase/Receipt of Securities

All purchases/receipt of securities in one's account is affected as per `Standing

Instruction for Credit given to ICICI Bank to receive credits automatically in the
account. If the customers have not given standing instruction for receiving credits,
one is required to give a specific receipt instruction for each credit in the prescribed
form. The date of credit depends on ones brokers' instruction and ICICI bank has no
control on the same.

Dematerialization

It is the process of converting the securities held in electronic form in a Demat

account to an equivalent number of securities in physical form (certificates) after
debiting the same from the Demat account.

Pledge

Securities held in Demat form can be pledged by the client to avail loan/credit
facility. Pledge of securities in NSDL requires that both the borrower and lender
should have a Demat account with any of the DP's with NSDL. The facility for Inter
Depository pledge is not available.

Freezing/Defreezing

The client has an option to freeze his accounts in case he does not intend to do any
transaction in the near future. This helps in curbing unauthorized use of Demat
account and prevention of frauds. Defreezing of the account is required to enable the

37
account again for transaction. The request for freezing and defreezing must be
submitted in personal prescribed form.

Corporate Benefit- Dividend, Bonus or Right Issue

In case the company in which a beneficial owner holds shares in Demat form
announces any corporate benefits like bonus, dividend etc. the beneficial owner will
receive the same directly in his Demat account or bank account depending on the
nature of the benefit. For payment of dividend etc. the company/registrar takes a list
of beneficial owners from NSDL as on the record date/book closure date. Based on
this list, company makes payment of dividend. If the company is making payment
through ECS, the company will directly credit the dividend to the bank account
registered by the beneficial owner. If the company is making payment through
cheque/DD, the bank details will be printed on dividend warrant. In case of a bonus
declaration by the company, the bonus securities on the eligible securities in the
beneficial owner's Demat account by the company/registrar under intimation to the
beneficial owner. This will be reflected in the transaction statement for the period.
In case of rights issue, the beneficial owner will receive an option to subscribe for
the eligible number of securities from the company. These may be in physical or
electronic form in the customers Demat account. In case of a merger or acquisition,
securities in the beneficial owner's Demat account is automatically credited and
debited by the company as per pre-declared ratio under intimation to the beneficial
owner. This will be reflected in the transaction statement for the period.

38
Public Issue

When subscribing for shares in a public issue, one can request for securities, if
allotted to be credited directly to ones Demat account and quote ones Demat account
for the purpose in the application form. After allotment, the securities will be
credited directly to ones Demat account under intimation to one from the
company/registrar.

Nomination

The customer can make a nomination of his account in favor of any person by filing
up the nomination details in the account opening form. This is to enable the nominee
to receive the securities after the death of all the ho lder(s) of the Demat account.

Transmission

It refers to transfer of securities from an account to the other as a result of the death
of the sole/ any of the holders of the former account. Here the transfer may be done
to: Surviving Holders Nominee where nomination has been made Legal heir where
nomination has not been made Common Requirements and effect.

Demat Account Statement

If there is transaction in previous 30 days, the customer is sent transaction statement.

If there is no transaction in previous 30 days but more than 90 days have passed, a
quarterly statement is sent if there are some holdings in the customer's account.
Customers who have opted for statement thru email" will get a digital signature
obtained from a Certifying Authority under the Information Technology Act, 2000,
which will authenticate the email.

39
Registration for Internet/phone Access & e-instructions

To increase convenience to the customers while reducing work load at ones end in
handling queries, there is a facility for the customer to directly access his Demat
Account 24 hours a day, 365 days a year through internet and phone. It is not
mandatory to hold a banking account to be able to register for such access.

Mobile Banking

With mobile banking one has an option to remain updated while one is on the move,
without even calling or logging on to internet.

Billing & Payments

The bills are generated in the beginning of each month for the previous month. The
due date is mentioned in the bill. However, it is not viable to send bills with amount
less than a certain cut-off amount. I.e. Rs.50. Customers will receive bills in the next
quarter or whenever the bill amount exceeds the cut-off amount.

Change of Address & Bank Details

Change of Address- The client should personally visit the branch. In case of a
corporate, at least one of the authorized signatories should sign the request in
presence of the branch officer.

Change of Bank Details for Receiving Dividend- The bank account details attached
with each Demat account are used to make dividend/interest payments. As per a
recent SEBI circular, it is mandatory for registrar companies to make
dividend/interest payments by ECS wherever bank details for the investors are
available.

40
One can shift from the standard scheme to the frequent traders scheme or vice-versa.
The application should be made in a prescribed form at ICICI bank. In case of shift
from standard scheme to frequent trader scheme, the customer can specify the date
from which the shift should take place and the application should contain a mandate
for recover of Rs. 900. In case of shift from frequent trader scheme to standard
scheme, the scheme is always effective from the date when the change in the billing
scheme is been done.

Account Security

Emphasis needs to be given on the fact that the securities that one have in ones
Demat account are similar to the money that one holds in bank account. One needs
to take all precautions for ones Demat transaction as one exercise for bank account.
The TFD booklet should be kept safely just like a cheque book. The details should
not be shared of one's Demat account number and signature with anyone. It should
be accepted only if it has pre-printed serial number as well as one's Demat account
number pre-stamped on each slip. It should not be signed unless completely filled.
If possible one should make use of web facility to check ones Transactions as
frequently as possible. "Account freeze" instruction should be given to ICICI bank
if one does not intend to operate ones account for a long time.

BANK DEPOSITS

Preamble

One of the important functions of the bank is to accept deposits from the public for
the purpose of lending. In fact, depositors are the major stakeholders of the banking
system. The depositors and their interests from the key area of the regulatory
framework for banking in India and this have been enshrined in the Banking
Regulation Act, 1949. The Reserve Bank of India is empowered to issue
41
directives/advices on interest rates on deposits and other aspects regarding conduct
of deposit accounts from time to time. With liberalization in the financial system and
deregulation interest rates, banks are now free to formulate deposit products within
the broad guidelines issued by RBI. This policy document on deposits outlines the
guiding principles in respect of formulation of various deposit products offered by
the bank and terms and conditions of governing the conduct of the account. The
document recognizes the right of depositors and aims at dissemination of
information with regard to various aspects of acceptance of deposits from the
members of the public, conduct and operations of various deposits accounts, method
of disposal of individual customers and creates awareness among customer of their
right. While adopting this policy, the bank reiterates its commitments to individual
customers outlined in Bankers' Fair Practice Code of Indian Banks' Association. This
document is a board framework under which the rights of common depositors are
recognized. Detailed operational instructions on various depositors are recognized.
Detailed operational instructions on various deposits schemes and related services
will be issued from time to time.

Types of Deposit Accounts

The deposit products can be broadly categorized in the following types:-

• "Saving Deposits" means a form of deposit which is subject to restriction as

to the number of withdrawals permitted by the bank during a specified period.

• "Term Deposits" means a form of deposit received by the bank for a fixed
period withdrawal only after the expiry of the fixed period and includes deposits
such as Recurring/Fixed deposits etc.

42
• "Current Account" means a form of demand deposit where withdrawals are
allowed any number of times depending upon the balance in the account or up to a
particular agreed amount and will also include other deposit accounts which are
neither Saving nor Term deposit.

8. Key Features on Operation of Different Types of Accounts

The bank before opening any deposit account will carry out due intelligence as
required under "know your customer" guidelines given by RBI and or such other
norms or procedures adopted by the bank. The account opening forms and other
materials would be provided to the prospective depositor by the bank. The same will
contain details of information to be furnished and documents to be produced for
verification and records. For deposit products like saving account and current
account, the bank will stipulate certain minimum balances to be maintained as part
of terms and conditions of such accounts. Saving bank account can be opened for
eligible person, persons, organizations, agencies.

Current account can be opened by individual, partnership firm, private and public
limited companies etc. Term deposit account can be opened by individuals,
partnership firms, trusts, HUF's etc. The due diligence process, while opening a
deposit account will involve satisfying about the identity of the person, verification
of address, satisfying about his occupation and source of income. Obtaining
introduction of the prospective depositor from a person acceptable to the bank and
obtaining recent photographs of the account opener. Under KYC norms the bank is
required by the law to obtain PAN or GIR number. Deposits account can be opened
by an individual in his own name or by more than one individual in their own names.
Minors can also open account jointly with natural guardian.

43
Operation of Joint Account: The joint account opened by more than one person can
be operated by single individual or more than one individual jointly. The mandate
can be modified with the consent of all account holders.

The joint account holders can give any of the followings mandates for the disposal
of balance in the above account:-

a) Either or Survivors: If the account is held by two individual say A&B the final
balance along with the interest, if applicable, will be paid to survivor on the death of
anyone of the account holders.

b) Anyone or Survivors: If the account is held by more than two persons say A,
B & C, the final balance along with the interest, if applicable, will be paid to the
survivor on the death of any two account holders.

The above mandates will be applicable to or become operationa l during the tenure
of the term deposit on or after the date of maturity of term deposit. This mandate can
be modified by consent of all account holders. At the request of the depositor, the
bank will register mandate power of attorney given by the customer authorizing
another person to operate the account on his behalf. The term deposit account holders
at the time of placing their deposits can give instructions with regard to closure of
deposit or renewal of deposit for further period on the date of maturity. Nomination
facility is available on all accounts. It can be made in favor of one individual only.
It can be cancelled or changed by the account holder any time. Bank recommends
that all account holder avail to the nomination facility. The nominee in the event of
death of the depositor will receive the outstanding balance in the account as a trustee
of legal heirs. A statement of account will be provided by the bank to savings bank
as well as current account holders periodically as per terms and conditions of

44
opening an account. The deposit account may be transferred to any other branch of
the bank at the request of the depositor.

Minor's Account

a) The minor can open savings bank account and it can be operated by natural
guardian or by minor himself/ herself if they are above the age of 10. The account
can also be opened jointly.

b) On attaining majority, the erstwhile minor should confirm the balance in

his/her account and if the guardian operated the account, fresh specimen signature
of the minor would be obtained and kept on record for operational purposes.

5.3.2 Account of Illiterate/Blind Person

The bank may at its discretion open deposit accounts other than current accounts of
illiterate person. The account of such person may be opened provided the/she calls
the bank personally along with a witness who is known both to the depositor ad the
bank. At the time of withdrawal, deposit etc, the account holder should affix his/her
thumb impression or presence of the authorized officer who should identify of the
person. The bank will explain the need for proper care and safe keeping of the person
given to the account holder.

5.3.3 Addition or Deletion of the Name's of Joint Account Holders

Accounts, which are not operated for a considerable period of time, will be
transferred to a separate dormant inoperative account status in the interest of the
depositor as well as the bank. The depositor will be informed about the charges, if
any. The depositor may request to activate the account.

45
Directives on Interest Payments & term Deposits

Interest Payments

Interest shall be paid on savings account at the rate specified by RBI. The bank
decides the interest rate within the general guidelines of RBI. The rate of interests
will be prominently displayed in the branch premises and on its website. The bank
has statutory obligation of deducting tax if the total amount payable exceeds the
amount specified by Income Tax Act. The bank will issue Tax Deduction Certificate
(TDS).

Premature Withdrawal of Term Deposit

The bank on request from the depositor, at its discretion may allow withdrawal of
term deposit before completion of the period of deposit agreed upon at the time of
placing the deposit. The bank shall declare their penal interest rates policy for
premature withdrawal.

Premature Renewal of Term Deposits

In case the depositor desires to renew the account, the bank will permit it at the
applicable date of the date of renewal, provided the deposit is renewed for a period
longer than the balance period of original deposit. The bank will be paid interest at
the rate applicable to the period for which it stayed with the bank and not the
contracted rate.

46
Renewal of Overdue Term Deposits

When a term deposit is renewed on maturity, on renewed deposit interest rate for the
period specified by the depositor as applicable on the date of the maturity would be
applied.

Advances against Deposits

The bank may consider loan overdraft facility against term deposits duly discharged
by the depositor on the execution of necessary security documents.

Deceased Account Handling

Settlement of Dues in Deceased Deposit Account

If the depositor has registered nomination with the bank, the balance outstanding
will be transferred to the nominees account after verification about the identity of
the nominee.

The above procedure will be followed in even in joint account.

In a joint account, when one joint account holder dies, the payment is made to the
legal heirs of the deceased person and surviving depositor jointly.

In absence of nomination and where there are no disputes, the bank will pay the
amount to the account of deceased person against joint application and indemnity by
all heirs or the person mandated by legal heirs to receive the payment on their behalf
without insisting on the legal documents up to the limit approved by the bank.

47
Interest on Term Deposit in Deceased Account

In event of death of depositor before the date of maturity the bank shall pay interest
at the contracted rate till the date of maturity. However, if the depositor dies after
date of maturity, the bank shall pay interest at saving deposit rate

Facilitation of Other Banking Services

Stop Payment Facility

The bank will accept stop payment by depositor in respect of cheques issued by
them. Charges as specified will be recovered.

Safe Deposit Lockers

It may be hired by individual or jointly. Nomination facility is available to the

individuals holding the lockers singly or jointly. In case of death of the holder the
bank will release the contents of the locker to the legal heirs if the nominations are
not made.

Safeguarding Customer Interest

Customer Information

The bank shall not use the customer information. If the bank purposes to use such,
it will be strictly with the consent of account holders.

Secrecy of Customer Accounts

The bank shall not disclose details of the customer's account to third party without
the consent of the holder.

48
Insurance Cover for Deposits

All deposits are covered under insurance scheme offered by Deposit Insurance &
credit Guarantee Corporation of India subject to certain conditions.

Redressal of Complaints & Grievances

Depositors having any complaint with regard to the services rendered, have a right
to approach authority designated by the bank for handling customer grievances.

LOANS AVAILABLE AT ICICI BANK

ICICI Bank offers wide variety of Loans Products to suit the requirements of the
customer coupled with convenience of networked branches/ ATMs and facility of
E- channels like Internet and Mobile Banking, ICICI Bank brings banking at
doorstep. The customers can select any of the loan products and provide their details
online and the representative will contact the customer for getting loans.

Home Loans

At ICICI Bank Home Loans, offer unbeatable benefits to ensure the customer get
the best deal without any hassles. As one of the leading home loan provider, ICICI
Bank understands how special building a new home is and Home Loan help the
customer lay the foundation for their dream home. ICICI offers the most convenient
home loan plans to suit the needs. With so many attractive features in every type of
home loan they offer, creating the home the customer always wanted is no longer a
distant dream. Some of the key benefits are:

• Guidance throughout the process

• Home loan amounts suited to your needs

• Home Loan tenure up to 20 years

49
• Simplified Documentation

• Doorstep Service

• Attractive interest rates

• Sanction approval without having selected a property

• Free Personal Accident Insurance

• Insurance options for your home loan at attractive premium

No matter what the requirement, they have an appropriate plan for everyone.

Personal Loans

Thinking of renovating your house? Yearning to buy a new Laptop? Need financial
assistance with marriage related expenses or your child higher education? An ICICI
Bank Personal Loan is your One-stop-shop for all your financial needs to fulfill any
of your desires.

Key Benefits of ICICI Bank Personal Loan:

· Loan up to 15 lacks

· No security/guarantor required

· Faster Processing

· Minimum Documentation

· Attractive Interest Rates

· 12-60 Months repayment options

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With the "Loan on Phone" facility, it is possible to secure a loan even without having
to visit your bank branch. If you have been an ICICI Bank customer for the past 9
months, you might have a pre-approved loan offer waiting for you.

Car Loans

Turn your dream into reality. Own that new car you have always desired, with a little
help from us. We offer loans up to 100% of `on-road' cost on select models, and up
to 95% of the ex-showroom price on others. Our interest rates would pleasantly
surprise you. What's more, you can take up to 6 years to repay the loan. Worried
about paperwork? Relax. The process for getting a loan involves only a few simple
steps and we will tailor- make the loan to suit your needs.

1. Loan on Phone for Customers: Are you an ICICI Bank customer? Go for a
pre- approved car loan. Call our Customer Care numbers or SMS "carloan” to
567676.

2. Loan on the Strength of Your Income: Submit income proofs as required and
avail of finance up to 100% of the `on-road' cost of the car!*

3. Loan in the absence of Income Proof: We offer car loan for customers without
income proof on producing the bank statement, loan repayment track record, etc.

4. Car Loans with Fixed and Floating Interest Rates: ICICI Bank now offers new
car loans with both fixed and floating interest rate options. The customer can opt for
fixed interest rate or floating interest rate for taking a car loan from ICICI Bank
according to his/her discretion.

Farm Equipment Loans

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It is preferred financier for almost all leading tractor manufacturers in the country.
Financing farm equipments in over 381 locations spread across the country. It
provides fast processing of files with easy documentation. Flexible repayment
options in tandem with the farmer's seasonal liquidity. There are Monthly, Quarterly
and Half- yearly repayment patterns to choose from. It also provides comfortable
repayment tenures from 1 year to 6 years.

Construction Equipment Loan

Having funded infrastructure for over four decades, ICICI Bank understand the
needs of the customer better. We offer attractive financial packages for a customer
planning to take loan for construction equipment through our vast distribution
network. Our products will suit equally an entrepreneur to a large business house.
We have tie up with the leading manufacturers of construction equipments for a wide
range of products. We offer funding for the requirement of a new asset and we also
take over existing high cost loans at competitive terms for the customer.

Loan against Securities

Loans against securities offer you instant liquidity. You don't have to sell your
securities. All you have to do is pledge your securities in favor of ICICI Bank. We
will then grant you an overdraft facility up to a value determined on the basis of the
securities pledged by you. A current account will be opened and you can withdraw
money as and when you require. Interest will be charged only on the amount. This
facility is available only on: -

a) Demat Shares b) withdrawn and the time span utilized. Mutual Funds Units c)
Insurance Policies d) UTI Bonds e) NSC/KVP (in Demat form only).

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Loan against Property

Loan against Property is the perfect way to unlock the hidden value of your property.
With this loan, you can fully benefit from life's little surprises you may have earlier
passed over due to lack of funds. Live your dreams with a

Loan against Property!

This multi-purpose loan puts funds at your disposal to use as you wish. What's more,
this loan is available at a reasonable rate and can be repaid comfortably over as many
as 15 years. The ICICI Bank's Loan against Property can be used for any purpose.

Expand your business!

No longer do you have to stifle your creative ideas. With funds at your disposal, you
can now expand your business without hesitation.

Get your child married!

Put aside all your monetary worries and celebrate your child's wedding with pomp
and splendor. Meet all your expenses with ease--when you take an ICICI Bank Loan
against Property.

Send your child for higher studies!

Education is the cornerstone of your family's progress. With a Loan against Property,
you can empower your son or daughter to grow into an outstanding achiever.

Fund your dream vacation!

Do you want to visit the monuments of Europe or take your children to Disneyland?
Wait no more! Let your property fund your trip!

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Renovate your home!

When you decide to renovate your home you want it be your joy and pride. With
ICICI Bank's Loan against Property you will not need to cut corners. Effortlessly
redo your home to match your dreams.

Farmer Finance

Providing finance to the farmer for his various needs of inputs and consumption in
the form of crop loans, dairy loans and loans for allied activities to agriculture like
irrigation etc. For input needs and auto loans (two, three and four wheeler) and
personal loans for consumption needs. The customer can also avail of working
capital term loan for setting up a poultry project. Flexible repayment pattern and
tenure to align to the cash flow of the customers.

Rural Education Loan

ICICI Bank Rural Educational Institution Finance (REI) caters to the need of
privately runs Educational Institution based out of Rural, Semi Urban and Outside
city limit locations. The product is designed to cater to the specific needs of the
education institutions. New products and features in the existing product are
introduced based on regular customer feedback.

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NON-DEPOSITORY SERVICES

Consumer Cards

Credit Cards- Credit Cards give you a smart way to shop, and offer you flexibility
and convenience in managing your finances. ICICI Bank credit cards provide a host
of exciting offers and benefits such as low interest rates, rewards programs, and a
high credit and cash limit. We offer different types of credit card to suit the different
needs and requirements for added features.

Travel Card- Presenting ICICI Bank Travel Card. It is the hassle free way to Travel
the world. Traveling with US Dollar, Euro, Pound Sterling or Swiss Francs; Looking
for security and convenience; take ICICI Bank Travel Card. Issued in duplicate.
Offers the Pin based security. Has the convenience of usage of Credit or Debit card.

Debit Cards- The ICICI Bank Debit Card is a revolutionary form of cash that allows
customers to access their bank account around the clock, around the world. The
ICICI Bank Debit Card can be used for shopping at more than 3.5 Lakh merchants
in India and 24 million merchants worldwide.

7.2 Commercial Cards

ICICI Bank Commercial Cards have been designed as payment solutions for large
& mid-sized organizations. A widely accepted concept internationally, Commercial
Cards help to better streamline payment processes & thus increase efficiencies.

Corporate Cards- ICICI Bank Corporate Cards offer better management of

employee's travel and entertainment expenditure; control on employee spends and
facilitates cashless transactions for the employee and the corporate. A Powerful
Payment Solution for the Corporate Travel and entertainment expenses constitute a
significant part of a corporate indirect operating expense. Our system facilitates the
55
corporate to assign credit limits, which helps control expenses of its employees. It
provides the corporate with a consolidated billing system. Instead of making
payments to the individual employees, the corporate has to make a single cheque
payment to the supplier.

Prepaid Cards- ICICI Bank brings to you a complete bouquet of prepaid cards
providing payment solutions at your fingertips. ICICI Bank prepaid cards are a safe
&convenient way for associate payments, disbursements, gifting & small ticket
transactions. Prepaid cards are available on a VISA platform thus providing
accessibility to over one lakh merchant establishments & cash withdrawal from all
VISA ATMs in India.

Purchase Card- The ICICI Bank Purchase Card is a card based payment solution
that streamlines and effectively controls procurement processes of corporate.
Purchase card can be used for expenses like Travel & Entertainment (T&E),
Telecommunications, MRO, Office products, Professional services & Utility
payments. A credit limit is assigned to the corporate on the card and the corporate
can thereafter use the card for making payments to all vendors & suppliers. The
corporate gets a credit period of up to 50 days and can thereafter repay ICICI Bank
as per the billing due date. And ICICI Bank Purchase card can be used on any VISA
or MasterCard Network. Purchase card can be used for all Indirect Expenses that an
organization would be incurring. These expenses can be routed through the Purchase
Card for extracting maximum benefits from the solution. Mentioned below are some
of the indirect expenditures that an organization incurs:

• Travel & Entertainment

• Telecommunications

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• Utility Payments

• General MRO Goods

• Office products

• Computer and peripherals

• Professional services

• Lease and rental payments

Distribution Card- Distribution Cards are a unique receivables management solution

we offer on the supply chain front. The value proposition in this solution suits large
businesses and immensely enhances process efficiencies and receivable control.
Your company's invoice-to-cash cycle squeezes to 24 hours without any risk or
collection

/Cash Management System hassles, and your intermediaries save on remittance costs
without having to open any account with us. All transactions pan-India get credited
to the company's account with all relevant MIS and other requirements. The dealer
gets infusion of capital and a flexible facility to settle transactions, enabling him to
scale up his business in a smarter way. A measure of the success of this product is
that in the fuel industry alone, we are doing a monthly business of Rs. 900 crore and
growing at a very fast clip.

Business Card-The ICICI Bank Business Card is aimed at SMEs as an enabler for
their business. The Business card is a smart alternative to cheques, cash, and personal
credit cards. With its purchasing convenience, cost savings, available credit, and
detailed

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reporting facilities, the ICICI Bank Business Credit Card offers what your business
needs to stay on top.

Mobile Banking

Bank on the move with ICICI Bank Mobile Banking. With ICICI Bank, Banking is
no longer what it used to be. ICICI Bank offers the Mobile Banking facility to all its
Bank, Credit Card, Demat and Loan customers. ICICI Bank Mobile Banking can be
divided into two categories of facilities: Alert facility: The ICICI Bank Mobile
Banking Alert facility informs you promptly of the significant transactions in your
accounts. It keeps you updated wherever you go.

Request facility: ICICI Bank Mobile Banking Request facility enables you to ask for
your account information.

Phone Banking

ICICI bank offers phone banking facility to its customer. The toll free numbers are
given to the customer's on whom they can operate following types of banking:

They can enquire about their account balances. They can know about last three
transactions.

They can know about dishonor of cheques. Customers can request for new cheque
books. Customers can block their ATM/ Debit cards. Customers can stop the
payments.

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DEMAT & INVESTMENTS

Demat Services

ICICI Bank Demat Services boasts of an ever-growing customer base of over 11.5
lakhs account holders. In our continuous endeavor to offer best of the class services
to our customers we offer the following features:

E-Instructions: You can transfer securities 24 hours a day, 7 days a week through
Internet & Interactive Voice Response (IVR) at a lower cost. Now with "Speak to
transfer", you can also transfer or pledge instructions through our customer care
officer.

Consolidation Demat Account: Dematerialize your physical shares in various

holding patterns and consolidate all such scattered holdings into your primary Demat
account at reduced cost.

Digitally Signed Statement: Receive your account statement and bill by email.

Corporate Benefit Tracking: Track your dividend, interest, bonus through your
account statement.

Mobile Request: Access your Demat account by sending SMS to enquire about
Holdings, Transactions, Bill & ISIN details.

Mobile Alerts: Receive SMS alerts for all debits/credits as well as for any request
which cannot be processed. Dedicated customer care executives specially trained at
our call centre, to handle all your queries.

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Investments

At ICICI Bank, we care about all your needs. Along with Deposit products and Loan
offerings, ICICI Bank assists you to manage your finances by providing various
investment options ranging from ICICI Bank Tax Saving Bonds to Equity
Investments through Initial Public Offers and Investment in Pure Gold. ICICI Bank
facilitates following investment products:

• ICICI Bank Tax Saving Bonds

• Government of India Bonds

• Investment in Mutual Funds

• Initial Public Offers by Corporate

• Investment in "Pure Gold"

• Foreign Exchange Services

• Senior Citizens Savings Scheme, 2004

You can invest in above products through any of our branches. For select products
ICICI Bank also provides the ease of investing through electronic channels like
ATMs and Internet (ICICIdirect.com)

8.2.1 ICICI Bank Bonds

• All ICICI Bank Bonds have been rated "AAA" by CARE and "LAAA" by
ICRA indicating the highest degree of safety for your money

• All Investment in ICICI Bank Tax Saving Bonds issued up to March 2005 are
eligible for tax rebate under Sec 88 to the full extent possible

• Bonds are listed on BSE, NSEGOI Bonds

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• 8% Savings Bonds (Taxable), 2003

• Low risk.

• Reasonable investment tenure.

• Nomination facility available.

• Cannot be traded in secondary market.

• Interest income taxable.

Mutual Funds

Mutual Funds pool money of various investors to purchase a wide variety of

securities while pursuing a specific goal. Selection of Securities for the purpose is
done by specialists from the field. Returns generated are distributed to the Investors.
Mutual Fund Companies offer various schemes. Investors can choose any particular
Fund/Scheme or mix of Funds/Schemes depending upon their perception towards
risk. Investment is done on the basis of prevailing Net Asset Values of various
schemes. Mutual Funds Investments are subject to Market Risks.

Types of Funds Sold

We will help you determine which types of funds you need to meet your investment
goals. This may include the following types of funds:

• Debt: Liquid schemes, Income schemes, G-sec schemes, Monthly Income

Schemes etc.

• Equity: Diversified Equity Schemes, Sector Schemes, Index Schemes etc.

• Hybrid Funds: Balanced Schemes, Special Schemes - Pension Schemes, Child

education Schemes etc.

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At ICICI Bank we will help you identify an appropriate mix of Mutual Fund schemes
for your portfolio using asset allocation strategies. Through ICICI Bank you can
invest in various schemes of multiple mutual funds with decent performance record.
You can take the aid of our various research reports on mutual funds and their
schemes before choosing a scheme for investment. ICICI Bank offers investment in
Mutual Funds through Multiple Channels. With ICICI Bank, you can invest in
Mutual Funds through following channels.

• ICICI Bank Branches

• ICICIdirect.com Dedicated workforce to serve you

• Before being deputed, our officers complete a comprehensive training

program and, once deputed, they receive thorough instructions in financial planning
skills and techniques. Throughout their careers officers also attend programs to
update their skills.

• All officers in charge of Mutual Funds are certified professionals by AMFI

(Association of Mutual Funds in India)

• Many of these officers also hold professional degrees like - MBA, CA, ICWA,
and CFA etc.

IPO

You can invest in IPOs online through www.icicidirect.com with same convenience
of investing in equities - hassle- free and with zero paper work. Also, get in-depth
analyses of new IPOs issues (Initial Public Offerings) which are about to hit the
market. IPO calendar, recent IPO listings, prospectus/offer documents and live
prices will help you keep on top of the IPO markets.

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ICICI Bank Pure Gold

Gold has been traditionally the most favored form of investme nt for Indians. In fact,
India, even today is amongst the highest consumers of Gold in the world. However,
the Gold market remains largely unorganized with reliability and convenience
remaining the key issues for gold buyers in the country. ICICI Bank with its `Pure
Gold' offer attempts to bridge the gap between the need of the customers for buying
gold and availability of an organized avenue to satisfy that need, by taking care of
the two key components - Reliability and Convenience. Reliability 24 Carat ICICI
Bank Pure Gold is imported from Switzerland. This Gold carries a 99.99% Assay
Certification, signifying highest level of purity, as per international standards.

ICICI Bank Pure Gold is competitively priced based on daily prices in the
international bullion market. Currently, gold is available in 2.5g, 5g, 8g, 20g and 50g
categories.

FOREX Services

ICICI Bank's Foreign Exchange Services will help you organize your foreign
exchange in the most hassle free manner. Whether it’s Foreign Currency, Travelers
Cheques or Travel Card, ICICI Bank Foreign Exchange Services is a one-stop
solution to your foreign exchange requirement.

Senior Citizen's Savings Scheme

Scheme Details: Senior Citizens Savings Scheme (SCSS) is a Government of India

9% interest offered to depositors. Since the product is offered by Govt of India, this
product is one of the most Safest Investment Option. Premature closure of account
is possible after one year from the date of opening the account.

• Advantages of Opening an SCSS Account with ICICI Bank.

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• Large number of Branches.

• Facility of Direct Credit of Interest to ICICI Bank Account.

In case the investor does not want to avail Direct Credit facility or ECS facility, 4
Post Dated Cheques will be sent to Investor every year. Account Statement
containing the details of Deposit Balance & transactions.

ICICI DIRECT

ICICI Direct.com is a truly online share-trading site. Which means that from the time
you punch in a buy or sell trade on your computer to the final settlement in your
account, everything happens completely online? The 3- in-1 e-invest account
integrates your brokerage, bank and one or more depository accounts to make sure
that you can do the otherwise cumbersome share trading from the comfort of your
home or office, at absolutely any time of the day or night.

SUGGESTIONS

Some customers feel that they are trained for ICICI Direct.Com demo. Many
customers feel that batch of 15 are good for ICICI Direct.Com training.

Survey reveals that most of the customers are not aware of the service of the Mutual
Fund. ICICI Capital Services Ltd. and the normal tendency of the customer are both
investing in shares and in Mutual Funds are one and the same. So for this ICICI
Capital Services Ltd., should create an awareness of what exactly mean by Mutual
Funds and all other services of ICICI Capital Services Ltd.

After getting the printouts of the holding statement, dispatch of the same should be
taken place with no delay and this can be cross verified with the sender (dispatch
section).

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Customers are facing overcrowding, non-availability of telephone lines, so proper
measures should be taken to overcome these problems.

The ICICI official should conduct regular training demo classes for the new account
holders.

LIFE AND GENERAL INSURANCE SERVICES

Life insurance is a form of insurance that pays monetary proceeds upon the death of
the insured covered in the policy. Essentially, a life insurance policy is a contract
between the named insured and the insurance company wherein the insurance
company agrees to pay an agreed upon sum of money to the insured's named
beneficiary so long as the insured's premiums are current. With a large population
and the untapped ma rket area of this population insurance happens to be a very big
opportunity in India. Today it stands as a business growing at the rate of 15-20%
annually. Together with banking services, it adds about 7 percent to the country’s
GDP. In spite of all this growth statistics of the penetration of the insurance in the
country is very poor. Nearly 80% of Indian populations are without life insurance
cover and the health insurance. This is an indicator that growth potential for the
insurance sector is immense in India. It was due to this immense growth that the
regulations were introduced in the insurance sector and in continuation "Malhotra
Committee" was constituted by the government in 1993 to examine the various
aspects of the industry. The key element of the reform process was participation of
overseas insurance companies with 26% capital. Creating a more competitive
financial system suitable for the requirements of the economy was the main idea
behind this reform. Since then the insurance industry has gone through many
changes. The liberalization of the industry the insurance industry has never looked
back and today stand as one of the most competitive and exploring industry in India.

65
The entry of the private players and the increased use of the new distribution are in
the limelight today. The use of new distribution techniques and the IT tools has
increased the scope of the industry in the longer run. Insurance is the business of
providing protection against financial aspects of risk, such as those to property, life
health and legal liability. It is one method of a greater concept known as risk
management -which is the need to mange uncertainty on account of exposure to loss,
injury, disadvantage or destruction. Insurance is the method of spreading and
transfer of risk. The fortunate many who are exposed to some or similar risk shares
loss of the unfortunate. Insurance does not protect the assets but only compensates
the economic or financial loss. In insurance the insured makes payment called
"premiums" to an insurer, and in return is able to claim a payment from the insurer
if the insured suffers a defined type of loss. This relationship is usually drawn up in
a formal legal contract. Insurance companies also earn investment profits, because
they have the use of the premium money from the time they receive it until the time
they need it to pay claims. This money is called the float. When the investments of
float are successful they may earn large profits, even if the insurance company pays
out in claims every penny received as premiums. In fact, most insurance companies
pay out more money than they receive in premiums. The excess amount that they
pay to policyholders is the cost of float. An insurance company will profit if they
invest the money at a greater

return than their cost of float. An insurance contract or policy will set out in detail
the exact circumstances under which a benefit payment will be made and the amount
of the premiums.

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Classification of Insurance:

The insurance industry in India can broadly classify in two parts. They are.

1) Life insurance:

Life insurance can be defined as "life insurance provides a sum of money if the
person who is insured dies while the policy is in effect". In 1818 British introduced
to India, with the establishment of the oriental life insurance company in Calcutta.
The first Indian owned Life Insurance Company; the Bombay mutual life assurance
society was set up in 1870.the life insurance act, 1912 was the first statuary measure
to regulate the life insurance business in India. In 1983, the earlier legislation was
consolidated and amended by the insurance act, 1938, with comprehensive
provisions for detailed effective control over insurance. The union government had
opened the insurance sector for private participation in 1999, also allowing the
private companies to have foreign equity up to 26%. Following the opening up of
the insurance sector, 12 private sector companies have entered the life insurance
business.

Benefits of life insurance:

Life insurance encourages saving and forces thrift. It is superior to a traditional

savings vehicle.

It helps to achieve the purpose of life assured.

It can be enchased and facilitates quick borrowing. It provides valuable tax relief.

2) Non- life (general) Insurance:

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Triton insurance co. ltd was the first general insurance company to be established in
India in 1850, whose shares were mainly held by the British. The first general
insurance company to be set up by an Indian was Indian mercantile insurance co.
Ltd., which was stabilized in 1907. There emerged many a player on the Indian scene
thereafter. The general insurance business was nationalized after the promulgation
of General Insurance Corporation (GIC) OF India undertook the post-nationalization
general insurance business.

ICICI PRUDENTIAL

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a
premier financial powerhouse and prudential plc, a leading international financial
services group headquartered in the United Kingdom (UK). The company brings
together the local market expertise and financial strength of ICICI Bank and
Prudential's International life insurance experience. The compa ny was granted a
certificate of Registration by the IRDA on November 24, 2000 and eighteen days
later, issued its first policy on December 12. ICICI Prudential was amongst the first
private sector insurance companies to begin operations in December 2000 after
receiving approval from Insurance Regulatory Development Authority
(IRDA).From its early days, ICICI Prudential seemed to have the wherewithal for a
large-scale business. By March 31, 2002, a little over a year since its launch, the
company had issued 100,000 policies translating into premium income of
approximately Rs. 1,200 million on a sum assured of over Rs.23 billion. When the
company began its operations, the need was to build a brand that was relatable to,
symbolized trust and was easily recognized and understood. It launched a corporate

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campaign ICICI Prudential also made using the theme of `Sindoor' to epitomize
protection, trust, togetherness and all that is Indian; endearing itself to the masses.

ICICI Prudential's product range has been developed on the understanding that
different people have their own sets of needs at various stages of their lives. It has
thus built a flexible portfolio of products that can be customized to cater to varying
needs of people at each stage, and thus ensure protection in every step of life. The
company's philosophy has been to help customers understand their financial needs
and work closely with them to customize a product that would meet. Advisors can
offer a complete range of products

-Savings plans, Child plans, Market-linked plans, Protection plans, and Retirement
plans

- and tailor a flexible solution to meet customers' changing needs at every stage
of life. In fact, ICICI Prudential was the first to un-bundle product benefits,
pioneering the concept of `riders' and soon after introduces comprehensive market-
linked and retirement plans. ICICI Prudential has launched a handful of products
that are analyzed below:

ICICI Prudential's life insurance products may be loosely categorized under three
forms:

ure life insurance: Products without an investment angle to them; a product that is a
mix of a cumulative investment scheme and an insurance product; and, finally,
standard products such as money-back and endowment policies.

Single Premium Bond: The Single Premium Bond is the name of a policy that
combines the features of an investment in a cumulative deposit scheme with that of
an insurance product. Policy-holders are required to pay a one-time premium based

69
on a target sum assured. At maturity, the policy-holder gets the sum assured and
guaranteed additions that work out to a compound return of 4.5 per cent the sum
assured. The insurance part of the

package comes in the form of death benefits that are paid in the case of the demise
of the policy-holder. The size of the death benefit is linked to the number of years
left for the policy to expire. On maturity date, the maturity value is also paid in
addition to the death benefits that would have been paid earlier.

Life Guard policies: The company offers two pure life insurance products that have
an umbrella name, Life Guard. One of them involves a o ne-time premium for which
there are no maturity benefits. The other requires regular premium payments that are
returned at the end of the policy. Life Guard offers absolutely no investment-related
return and is suitable for individuals looking for an unadulterated insurance package.

Insurance Solutions for Individuals

ICICI Prudential Life Insurance offers a range of innovative, customer-centric

products that meet the needs of customers at every life stage. Its products can be
enhanced with up to 5 riders, to create a customized solutio n for each policyholder.

Savings Solutions

Secure Plus is a transparent and feature-packed savings plan that offers 3

levels of protection.

· Cash Plus is a transparent, feature-packed savings plan that offers 3 levels of

protection as well as liquidity options.

· Save `n' Protect is a traditional endowment savings plan that offers life
protection along with adequate returns

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· CashBak is an anticipated endowment policy ideal for meeting milestone
expenses like a child's marriage, expenses for a child's higher education or purchase
of an asset.

· LifeTime and LifeTime II offer customers the flexibility and control to

customize the policy to meet the changing needs at different life stages. Each offer
4 fund options

-Preserver, Protector, Balancer and Maximiser.

· LifeLink Super is a single premium Unit Linked Insurance Plan which

combines life insurance cover with the opportunity to stay invested in the stock
market.

· Premier Life is a limited premium paying plan that offers customers life
insurance cover till age of 75.

· InvestShield Life is a Unit Linked plan that provides capital guarantee on the
invested premiums and declared bonus interest.

· InvestShield Cash is a Unit Linked plan that provides capital guarantee on the
invested premiums and declares bonus interest along with flexible liquidity options.

· InvestShield Gold is a Unit Linked plan that provides capital guarantee on the
invested premiums and declares bonus interest along with limited premium payment
terms.

Protection Solutions

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· LifeGuard is a protection plan, which offers life cover at very low cost. It is
available in 3 options -level term assurance with return of premium and single
premium.

·HomeAssure is a mortgage reducing term assurance plan designed specifically to

help customers cover their home loans in a simple and cost-effective manner.

Child Plans

· SmartKid education plans provide guaranteed educational benefits to a child

along with life insurance cover for the parent who purchases the policy. The policy
is designed to provide money at important milestones in the child's life. SmartK id
plans are also available in unit- linked form - both single premium and regular
premium.

Retirement Solutions

· ForeverLife is a retirement product targeted at individuals in their thirties.

· SecurePlus Pension is a flexible pension plan that allows one to select between
3 levels of cover.

· Market-linked retirement products

· LifeTime Pension II is a regular premium market- linked pension plan.

· LifeLink Pension II is single premium market linked pension plan.

· InvestShield Pension is a regular premium pension plan with a capital

guarantee on the investible premium and declared bonuses

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· Golden Years: is a limited premium paying retirement solution that offers tax
benefits up to Rs 100,000 u/s 80C, with flexibility in both the accumulation and
payout stages.

Health Solutions

· Health Assure and Health Assure Plus: Health Assure is a regular premium
plan which provides long term cover against 6 critical illnesses by providing policy
holder with financial assistance, irrespective of the actual medical expenses. Health
Assure Plus offers the added advantage of an equivalent life insurance cover

· Cancer Care: is a regular premium plan that pays cash benefit on the diagnosis
as well as at different stages in the treatment of various cancer conditions.

Group Insurance Solutions

ICICI Prudential also offers Group Insurance Solutions for companies seeking to
enhance benefits to their employees.

ICICI Pru Group Gratuity Plan: ICICI Pru's group gratuity plan helps employers
fund their statutory gratuity obligation in a scientific manner. The plan can also be
customized to structure schemes that can provide benefits beyond the statutory
obligations.

ICICI Pru Group Superannuation Plan: ICICI Pru offers a flexible defined
contribution superannuation scheme to provide a retirement kitty for each member
of the group. Employees have the option of choosing from various annuity options
or opting for a partial commutation of the annuity at the time of retirement.

ICICI Pru Group Term Plan: ICICI Pru's flexible group term solution helps provide
affordable cover to members of a group. The cover could be uniform or based on

73
designation/rank or a multiple of salary. The benefit under the policy is paid to the
beneficiary nominated by the member on his/her death.

Flexible Rider Options, ICICI Pru Life offers flexible riders, which can be added to
the basic policy at a marginal cost, depending on the specific needs of the customer.

1. Accident and disability benefit: If death occurs as the result of an accident

during the term of the policy, the beneficiary receives an additional amount equal to
the rider sum assured under the policy. If the death occurs while traveling in an
authorized mass transport vehicle, the beneficiary will be entitled to twice the sum
assured as additional benefit.

2. Accident Benefit: This rider option pays the sum assured under the rider on
death due to accident.

3. Critical Illness Benefit: Protects the insured against financial loss in the event
of 9 specified critical illnesses. Benefits are payable to the insured for medical
expenses prior to death

4. Income Benefit: This rider pays the 10% of the sum assured to the nominee
every year, till maturity, in the event of the death of the life assured. It’s available in
SmartK id, SecurePlus, and CashPlus.

5. Waiver of Premium: In case of total and permanent disability due to an

accident, the premiums are waived till maturity. This rider is available with
SecurePlus and cashplus.

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Analysis

• Asset creation wise it is ranked 4th among all the competitors

• Faster Growth rate compared to most of the competitors

• It is one of the major contributor to the revenue of ICICI Bank

Findings

On an analysis and evaluation of the Secondary data collected the following findings
were found.

· Before establishment of private concerns the share of LIC was 22% hence
there is a wide scope for private concerns to enter in to market.

· Total 100 respondents have been approached out of which 75 are the potential
respondents who have shown interest for investment and finance plan

· Above 20% of respondents are shown interest for investment and financial
plan

About 12.67% of respondents have already been covered by other insurance

companies.

· About 10% of respondents are newly employed or trainees.

· About 10% of respondents interested for investment plan after knowing ICICI
PRUDENTIAL LIFE INSURANCE products.

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9. OTHER ICICI INITIATIVES

ICICI VENTURE FUNDS MANAGEMENT COMPANY LIMITED

With the recent spurt in entrepreneurship in the country, venture capital and private
equity capital financing are fast attaining a role of prominence. Uniquely positioned
to take the Indian entrepreneur further is ICICI Venture Funds, the wholly owned
subsidiary of ICICI, with its keen understanding of the Indian Financial Markets,
entrepreneurial ethos, access to global capital and a network through influential
global alliances. Strong parentage and affiliates provide ICICI Venture with access
to a broad spectrum of financial and analytical resources. An affiliation with (Trust
Company of the West) provides a platform for networking Indian Companies to
global markets and technology. ICICI Venture Funds currently manages / advises
11 Funds aggregating US$ 400 million, making it the most significant private equity
investor in the country. The investment experience of ICICI Venture’s professionals
is the foundation its strengths and success in several areas of investing. ICICI
Venture seeks to invest in opportunities where its network through ICICI and TCW
can create value for all involved. ICICI Venture’s primary investment objective is
capital investment through investments by way of equity or equity-related securities
in unlisted companies with significant growth potential. ICICI Venture’s
investments span a broad spectrum of industries and stages of development, the
investment focus being on

• Information Technology

• Biotechnology and Life Sciences

• Media and entertainment

• Retail Services

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ICICI SECURITIES AND FINANCE COMPANY LIMITED

Formed in 1993 when ICICI’s Merchant Banking Division was spun off into a new
company, I-SEC today are India’s leading Investment Bank and one of the most
significant players in the Indian capital markets. Its client list includes some of the
best known, most respected names in Indian business and industry, and I-SEC offers
them what are probably the widest, most in-depth range of services in the market,
with the highest standards of professionalism. Backed by a strong distribution
network, I-SEC is acknowledged to be at the forefront of all new developments in
the Indian debt market. I- SEC Research Reports, Compendia, Updates, I-BEX and
sovereign Bond Index, have become industry standards, sought after by finance,
business and reputed publications alike. The Project Finance Group has helped take
strategic projects from the drawing board to financial closure, leveraging the
expertise of parent organization. I-SEC has also executed several assignments in M
& A, including business valuat ions, spin-offs and mergers, for both domestic and
overseas clients. The range of products offered by I-SEC includes:

• Corporate Finance – Mergers and Acquisitions, Equity, Bidding (especially

for Telecom Projects)

• Fixed Income – Primary Dealership, Debt Research

• Equities – Lend management, Underwriting, Syndication, Private Equity

placement, Sales, Trading, Broking, Sect oral and Company Research I - SEC

• Continues to sustain a steady rate of growth by offering the most extensive

range of services combined with unrivalled standards of professionalism.

ICICI BROKERAGE SERVICES LIMITED

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et up in March 1995, ICICI Brokerage Services is a 100% subsidiary of I-SEC. It
commenced its securities brokerage activities in February 1996 and is registered
with the National Stock Exchange of India Limited and The Stock Exchange,
Mumbai. We are a joint venture between ICICI and the leading financial services
provider in India, and prudential plc of U.K., one of the finest Life insurance
companies in the world. Together we provide you with an extensive range of
insurance products to suit your various needs at various life stages. We aim to keep
you covered, at every step in life. Their policies are need-specific and address
particular age groups. This means that no matter where in life you are, we offer
specific products to suit your needs for savings, protection and retirement. Our
products can be categorized into the following:

• Saving plans

• Protection plans

• Retirement plans

ICICI PERSONAL FINANCIAL SERVICES LIMITED

ICICI Personal Financial Services Limited (ICICI PFS), formerly ICICI-Credit, was
one of the first four companies to obtain registration as a Non-Banking Financial
Company (NBFC) from the Reserve Bank of India (RBI) on September 10, 1997
under the new section 45IA of the Reserve Bank of India Act, 1934. During the year
1998-99, there was a significant shift in the Company’s operation from leasing to
hire purchase to distribution and servicing of all rental products for the ICICI Group.
It is now a focal point for marketing and distribution of all rental asset products for
ICICI, including auto loans, consumer durable finance and other financial products.
The Company has thus become part of ICICI’s retail strategy aimed at offering a

78
comprehensive range of products and services to retail customers. In view of this
reorientation of the business, the name of the Company was changed from ICICI
Credit Corporation to ICICI Personal Financial Services Limited (ICICI PFS)
effective March 22, 1999.

ICICI CAPITAL SERVICES LIMITED

ICICI Capital Services Ltd. was incorporated in the name of SCICI Securities Ltd.
on September 24, 1994 as a wholly owned subsidiary of erstwhile SCICI Ltd. with
the objective of providing stock broking services to the institutional clients and
undertaking activities such as underwriting, primary market placements &
distribution industry & company research etc; After the amalgamation of SCICI with
ICICI effective from April 1, 1996, resulting in the change of the name. The
company is mandated, under review by ICICI, to carry out on its behalf the retail
resource raising activities and to provide front office services related to all retail and
semi retail liability products of ICICI. The company also operates the network of
ICICI Centers being set up by ICICI. As on date the company has set up 91 centers
across the country.

ICICI INFOTECH

ICICI InfoTech is a leading provider of end-to-end IT solutions. We have an in-

depth experience of having worked on varied technologies with leading corporations
worldwide. Our service portfolio includes the following:

• IS & IT Consulting

• Software Design and Development

• Enterprise Application Integration

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• Value Chain Management Solutions (SCM, CRM etc.)

• Application Re-engineering and Management

• Knowledge Management Solutions

• Embedded System Applications

• Technology Incubation, IT-enabled Services & IT Outsourcing

ICICI Capital Ltd.

Its products are

RBI Bonds

E- invest (ICICI Direct.com)

Fixed Deposits

Mutual Funds

Bonds

Demat

Equity IPO

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MICRO FINANCE

Need for Micro Finance

Evolution of Microfinance in India

• Microfinance has been in practice for ages (though informally).

• Legal framework for establishing the co-operative movement set up in 1904.

• Reserve Bank of India Act, 1934 provided for the establishment of the

• Agricultural Credit Department.

• Nationalization of banks in 1969

• Regional Rural Banks created in 1975.

• NABARD established as an apex agency for rural finance in 1982.

• Passing of Mutually Aided Co-op. Act in AP in Considerable gap between

• Demand and supply for all financial services.

Majority of poor are excluded from financial services. This is due to, the following
reasons:

1. Bankers feel that it is fraught with risks and uncertainties.

2. High transaction costs.

3. Unfavorable policies like caps on interest rates which effectively limits.

81
While MFIs have shown that serving the poor is not an unviable proposition There
are issues that have constrained MFIs while scaling up. These include

1. Lack of an appropriate legal vehicle.

2. Limited access to equity.

3. Difficulty in accessing low cost on- lending funds (as of now they are unable
to Offer savings services in a legitimate manner).

· Limited access to Capacity Building support which is an important variable

in terms of quality of the portfolio, MIS, and the sustainability of operations.

· About 56 % of the poor still borrow from informal sources.

· 70 % of the rural poor do not have a deposit account.

· 87 % have no access to credit from formal sources.

· Less than 15 % of the households have any kind of insurance.

· Negligible numbers have access to wealth.

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 10. KEY FINANCIAL RATIOS OF ICICI BANK

· KEY FINANCIAL RATIOS OF ICICI

BANK (in Rs. Cr.) Mar-23 Mar-22 Mar-21 Mar-20
PER SHARE RATIOS
Basic EPS (Rs.) 45.79 33.66 24.01 12.28
Diluted EPS (Rs.) 44.89 32.98 23.67 12.08
Cash EPS (Rs.) 47.57 35.27 24.96 13.72

Book Value [Excl. Reval Reserve]/Share (Rs.) 283.01 240.75 208.78 175.15

Book Value [Incl. Reval Reserve]/Share (Rs.) 287.4 245.35 213.25 179.96
Dividend/Share (Rs.) 8 5 2 0
Operating Revenue / Share (Rs.) 156.41 124.28 114.38 115.54
Net Profit/Share (Rs.) 45.67 33.58 23.41 12.25
PER EMPLOYEE RATIOS
Interest Income/ Employee (Rs.) 86,23,980.58 81,60,551.87 80,11,976.81 75,31,118.58
Net Profit/ Employee (Rs.) 25,18,276.98 22,05,083.96 16,39,765.48 7,98,519.16
Business/ Employee (Rs.) 17,37,31,170.26 18,17,38,412.40 16,87,34,303.89 14,25,96,981.88
PER BRANCH RATIOS
Interest Income/ Branch (Rs.) 18,51,37,861.02 15,94,21,456.63 15,02,43,583.36 14,04,92,705.86
Net Profit/ Branches (Rs.) 5,40,61,857.97 4,30,77,686.78 3,07,49,495.06 1,48,96,341.85
Business/ Branches (Rs.) 3,72,96,25,427.97 3,55,03,72,927.65 3,16,41,68,725.60 2,66,01,40,804.47
KEY PERFORMANCE RATIOS
ROCE (%) 3.27 2.92 3.1 2.67
CASA (%) 45.83 48.69 46.28 45.11
Net Profit Margin (%) 29.2 27.02 20.46 10.6
Operating Profit Margin (%) 11.04 5.58 -3.5 -11.38
Return on Assets (%) 2.01 1.65 1.31 0.72
Return on Equity / Networth (%) 16.13 13.94 11.21 6.99
Net Interest Margin (X) 3.92 3.36 3.16 3.02
Cost to Income (%) 38.79 40.65 42.57 45.79
Interest Income/Total Assets (%) 6.89 6.12 6.43 6.8
Non-Interest Income/Total Assets (%) 1.25 1.31 1.54 1.49
Operating Profit/Total Assets (%) 0.76 0.34 -0.22 -0.77
Operating Expenses/Total Assets (%) 2.07 1.89 1.75 1.96
Interest Expenses/Total Assets (%) 2.97 2.75 3.26 3.78
VALUATION RATIOS
EV Per Net Sales (X) 16.88 18.75 17.44 14.82
Price To Book Value (X) 3.1 3.03 2.78 1.85
Price To Sales (X) 5.61 5.88 5.08 2.81
Retention Ratios (%) 89.09 94.06 100 100
Earnings Yield (X) 0.05 0.05 0.04 0.04
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11. Conclusion:

ICICI Bank has strong banking operations. They believe in customer satisfaction in
every possible way. They are focused on quality of products and services rather than
quantity of products and services. They have a strong banking solution such as
FINACLE which was developed by Infosys. The bank is rapidly growing. They have
an aggressive marketing strategy. The bank provides speedy way of services to its
customer with satisfaction. The five plans really help in the operation of the
organization. The bank has spent millions of rupees in different types of investments
on behalf of its customers. The bank is well known for its 90 days strategies. '90
days strategies' means whatever the bank wants to implement, implements within 90
days.

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BIBLIOGRAPHY

www.wikipedia.com

www.rbi.org.in

www.moneycontrol.com

www.nseindia.com

www.ndtv.com

www.indiainfoline.com

www.icicibank.com

www.google.com

Economic times Business world

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