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CUSTOMER SATISFACTION
Customer satisfaction refers to the extent to which customers are happy with the products and
services provided by a business. Customer satisfaction levels can be measured using survey
techniques and questionnaires.
Gaining high levels of customer satisfaction is very important to a business because satisfied
customers are most likely to be loyal and to make repeat orders and to use a wide range of
services offered by a business.
Customer focused
Studies carried out by icici banks have found very high levels of customer satisfaction. It is not
surprising because these companies emphasis market research and marketing as the tools to
find out what customers want. Knowing what your customer wants then makes it possible to
tailor everything you do to pleasing the customers e.g. providing the goods that customers
want, in the packaging that they want, in retail outlets which are convenient to use and well
placed.
There are many factors which lead to high levels of customer satisfaction including:
Products and services which are customer focused and thence provide high levels of value for money.
Customer service giving personal attention to the needs of individual customers Customer
satisfaction refers to the extent to which customers are happy with the products and services
provided by a business. Customer satisfaction levels can be measured using survey
techniques and questionnaires.
Gaining high levels of customer satisfaction is very important to a business because satisfied
customers are most likely to be loyal and to make repeat orders and to use a wide range of
services offered by a business.
What is clear about customer satisfaction is that customers are most likely to appreciate the
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goods and services that they buy if they are made to feel special. This occurs when they feel
that the goods and services that they buy have been specially produced for them or for people
like them. This relates to a wide range of products such as razors that are designed for ease of
use and good quality finish, petrol products that are environmentally friendly and customized to
meet the needs of particular types of engines, etc.
Customer satisfaction, a business term, is a measure of how products and services supplied
by a company meet or surpass customer expectation. It is seen as a key performance indicator
within business and is part of the four perspectives of a Balanced Scorecard.
In a competitive marketplace where businesses compete for customers, customer satisfaction
is seen as a key differentiator and increasingly has become a key element of business
strategy.[1]
There is a substantial body of empirical literature that establishes the benefits of customer
satisfaction for firms.
Measuring customer satisfaction
Organizations are increasingly interested in retaining existing customers while targeting non-
customers;[2] measuring customer satisfaction provides an indication of how successful the
organization is at providing products and/or services to the marketplace.
Customer satisfaction is an ambiguous and abstract concept and the actual manifestation of
the state of satisfaction will vary from person to person and product/service to product/service.
The state of satisfaction depends on a number of both psychological and physical variables
which correlate with satisfaction behaviors such as return and recommend rate. The level of
satisfaction can also vary depending on other options the customer may have and other
products against which the customer can compare the organization's products.
Because satisfaction is basically a psychological state, care should be taken in the effort of
quantitative measurement, although a large quantity of research in this area has recently been
developed. Work done by Berry (Bart Allen) and Brodeur between 1990 and 1998 defined ten
'Quality Values' which influence satisfaction behavior, further expanded by Berry in 2002 and
known as the ten domains of satisfaction. These ten domains of satisfaction include: Quality,
Value, Timeliness, Efficiency, Ease of Access, Environment, Inter-departmental Teamwork,
Front line Service Behaviors, Commitment to the Customer and Innovation. These factors are
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emphasized for continuous improvement and organizational change measurement and are
most often utilized to develop the architecture for satisfaction measurement as an integrated
model. Work done by Parasuraman, Zeithaml and Berry (Leonard L) [3]between 1985 and 1988
provides the basis for the measurement of customer satisfaction with a service by using the
gap between the customer's expectation of performance and their perceived experience of
performance..
Methodologies
The University of Michigan's American Customer Satisfaction Index (ACSI) is a scientific
standard of customer satisfaction. Academic research has shown that the national ACSI score
is a strong predictor of Gross Domestic Product (GDP) growth, and an even stronger predictor
of Personal Consumption Expenditure (PCE) growth. On the microeconomic level, research
has shown that ACSI data predicts stock market performance, both for market indices and for
individually traded companies. Increasing ACSI scores has been shown to predict loyalty,
word-of-mouth recommendations, and purchase behavior. The ACSI measures customer
satisfaction annually for more than 200 companies in 43 industries and 10 economic sectors.
In addition to quarterly reports, the ACSI methodology can be applied to private sector
companies and government agencies in order to improve loyalty and purchase intent.
Customer Satisfaction Research Analysis
Customer Satisfaction Research helps the businesses in building stronger relationships with
customer. Market research enables one to define what is the "best service" for customerGone
are those days when producers would be kings: today the consumer is the king. The key to
entry-exit of companies is in the hands of the consumer.
Today, the major driver of a company's profitability depends on customer satisfaction level.
with more & more easy availability of options; the consumers are riding a high wave.
We at Today's Chanakya carry out market research and industry analysis to determine the
level of customer satisfaction. We lay emphasis on customer relationship & evaluate the
changes as per the choice of the consumer.
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1. Introduction to the Industry
INDIAN BANKING SYSTEM
A HISTORICAL PERSPECTIVE
The earliest banks in India can be traced to the three presidency banks (in Bengal, Mumbai,
and Chennai) in the early 1980s. Subsequently with the emergence of several small banks in
the country, the number of banks had gone up 105 by December by 1934. In 1921, the three-
presidency banks were merged into the imperial bank of India, which, apart from usual
commercial operations, also took over certain central banking functions. Since the Reserve
Bank of India was established as a full – fledged central bank of the country The Imperial bank
of India was nationalized and came to be known as the State Bank of India the establishment
of the state bank of India was one of the significant steps taken by the government of India to
control its expanding economy.
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The banking system witnessed a steady growth during the post- independence period and by
the mid- sixties the system has become fairly strong and compact. However several
deficiencies in their functioning were noticed, mainly in terms of geographical coverage and
credit deployment. The network of branches of various banks covered only a limited segment
of the population in major cities while the rural areas and semi- urban areas were totally
neglected. it was also noticed that substantial gaps in credit deployment existed in financing
agriculture, small - scale industry and self - employed persons. Further, the ownership pattern
of banks showed the concentration of economic power in few hands
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The Indian banking industry is witnessing robust growth under the influence of a changing
regulatory environment, rapid technological advancements, heightened competition and
consolidation. This changing landscape in the banking industry is driving banks to explore the
outsourcing option to achieve efficiencies.
Apart from the growth in the industry, centralization and penetration of IT systems, need to
focus on core services, rapid scale up and introduction of new services are driving outsourcing
in this industry.
Outsourcing revenues from the Indian banking industry are estimated at Rs. 4 b for FY08 and
are expected to grow at a CAGR of 47% to touch Rs. 19 b by FY12. According to Arun
Jethmalani, CEO, ValueNotes, “The outsourcing potential in the Indian banking industry will
increase rapidly as banks strengthen their IT systems. Large international BPOs with their
experience of serving global banks and an end-to-end services portfolio are better poised to
capture this market in the long term.”
The vendor landscape has over 50 large and small vendors. Large BPOs like WNS and
Genpact traditionally catering to the international market are focusing on building their
domestic BPO divisions. We have classified the vendor landscape in the domestic banking
BPO into four categories:
International leaders (established BPO vendors with strong presence in international BPO
market like MphasiS)
India leaders (primarily focused on domestic market like Aegis, InfoVision and Omnia BPO)
Emerging companies (companies building capabilities and currently offering specialized
services on a small scale like Caretel, customer)
'Me-too’ players (offering undifferentiated low value services)
In the absence of cost arbitrage, creating value from outsourcing will be a critical challenge in
the domestic BPO. Building and maintaining meaningful differentiators will be critical to growth
and profitability. Says Pranav Dixit, analyst and co-author of the report, “With high growth in
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this space, international multi-service BPOs will leverage on the expertise gained from global
banks to garner business from Indian banks.”
Large scale multi-city operations, partnerships, ability to quickly ramp up operations while
maintaining quality and developing advisory capabilities will be key success factors for
outsourcing vendors focused on the banking industry. According to Neeraja Kandala, analyst
at ValueNotes, 'With further de-regulation in the banking industry and entry of several new
private and foreign banks, the addressable market for banking BPO is expected to grow to 10
times the current revenues.”
The report is designed to help:
- Banks looking to outsource their services
- Existing vendors to assess the competitive environment in India
- Other potential vendors to assess opportunities in India
- Venture capital companies looking for investment opportunities in BPOs
- Researchers looking for information on domestic BPO industry.
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DEVELOPMENTS IN BANKING SYSTEM
DEVELOPMENT OF BANKING IN INDIA
Banking activities are performed in India since ancient times. Moreover some of the banking
activities performed in ancient times are still performed in modern days also. In ancient time,
when Indians left their homes for pilgrimages or business for long period of time, they
deposited their money and valuables for sale keeping with persons of repute. Over time, a
practice developed to lend a part of such money deposited the needy persons to earn or
interest or usury as it was called then. The person with whom money was deposited for safe
custody enjoyed a good reputation and was an indispensable pillar of ancient Indian Society.
In this way, the banking activities were performed by an individual or group of individual
privately in India since ancient times.
Banking activities existed in India even before the vedic times, where giving and taking of
Credit in one form of the other was where giving and taking of Credit in one form of the other
was prevalent the ancient Hindu Literature and Scriptures refer to the money lending activities.
Mostly of books are in Sanskrit and Pali language. In the ancient times, the main functions of
the banks relating to individual or the state in the times of crises.
Although the origin of the banking in India was in the form of money lending business, the
transition from money lending to formal banking took place in 2nd century. All banking activities
were under the control of Private Sector. The persons who performed banking activities were
known as shreslities. Nagar Seths, Sharaff and Ehietties. These names are still popular in
modern India.
East India Company established banks on the pattern of European Style. Consequently, such
banks and Government treasuries expanded and the role of indigenous banks decline in the
Indian Economy. English Agency Houses were created back to the last quarter of 18th Century.
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The English Agency Houses in Calcutta and Mumbai began to serve as a banker of the East
India Company. They finance the movement of crops, issued paper money and passed the
way for establishment of joint stock banks. The earliest of these was established in 1770 by
one of the Agency Houses in Calcutta and its business was closely connected with other
houses. But it was wound up in 1832.
CLASSIFICATION OF BANK
Structure of scheduled
Commercial Bank
Public Sector Private Sector
Bank Bank
SBI & Private
Association Bank
Nationalised Foreign
Bank Bank
RRB’s
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DEVELOPMENT OF PRIVATE SECTOR BANK
With the increase of wealth and Commerce in Europe, private Bankers established themselves
in all the principle cities and towns. They received money on deposit, they managed the money
to such borrowers as could give the necessary security and they brought and sold bill of
exchange, billion and coin.
The development of business of banking can mainly be attributed to the London Goldsmiths
during the reign of queen Elizabeth. They used to receive their customers’ valuables and funds
for safe custody. Their receipts acknowledging the same in the course of time became payable
to the bearer on demand and hence enjoyed considerable circulation. The Goldsmith used to
deposit their funds/reserves in the exchequer and under the care of the Government.
However, the ruin of Goldsmiths proved as turning point in the English Banking. It let to the
growth of private banking and establishment of Bank of England in 1694, is the prototype and
exemplar of all our modern banks; its history, therefore, will deserve the particular attention.
Bank of England derived huge profits from the circulation of it. The other private English
Bankers issued their own notes, payable on and these notes according to the credit of the
issuers, obtained a great circulation in the neighborhood of the bankers who issued them.
DEVELOPMENTS IN BANKING SYSTEM
SOCIAL CONTROL OF BANKS
Indian banking structure has grown considerably in strength and stability due to the vigorous
control and effective monitoring by reserve bank of India. However, Order to remove the
deficiency pointed above, the Government introduced a scheme of social control of banks.
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According to the Banking Commission (1972), the social control scheme was introduced with
the main objective of “achieving a wider spread of bank credit flow to priority sectors and
making it a more effective instrument of development “.
NATIONALISATION OF BANKS
SOCIAL CONTROL OF BANKS
Indian banking structure has grown considerably in strength and stability due to the vigorous
control and effective monitoring by reserve bank of India. However, Order to remove the
deficiency pointed above, the Government introduced a scheme of social control of banks.
According to the Banking Commission (1972), the social control scheme was introduced with
the main objective of “achieving a wider spread of bank credit flow to priority sectors and
making it a more effective instrument of development “.
NATIONALISATION OF BANKS
Despite of scheme of social control there was no significant reorientation of lending activities of
banks towards meeting the requirements of priority sector like agriculture. This resulted in
nationalization of 14 major commercial banks with individual deposits exceeding Rs.50 crores
in July 1969.
The major objective of nationalization were
Reduction in concentration of economic power in hands of a few.
Expansion of credit to priority areas, which were hitherto neglected like agriculture,
small-scale industries and self, employed people.
Elimination of the use of bank credit for speculative and unproductive purpose.
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To provide a professional bent to bank management and encourage upcoming
entrepreneurs.
At the time of nationalization, the 14 major banks had a paid up capital of Rs. 28.5 crores,
deposits of Rs. 2626 crores, advances Rs. 1813 crores and 4134 branches. In other words
the nationalized banks accounted for 80% of branches, 83% of deposits and 84% of
advances of the whole banking system.
The Banks nationalized in 1969 were: -
1. Allahabad Bank
2. Andhra Bank
3. Bank of Baroda
4. Bank of India
5. Canara Bank
6. Central Bank of India
7. Dena Bank
8. Indian Bank
9. Indian Overseas Bank
10.Punjab National Bank
11.United Commercial Bank
12.Union Bank of India
13.Syndicate Bank
14.Bank of Maharashtra
REGIONAL RURAL BANKS
The RRBs were established with a view to combining the local feel and familiarity with rural
problems. The RRBs are primarily sponsored by the commercial banks.The primary
objectives of these banks are:
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Providing credit for agricultural purposes to small entrepreneurs engaged in trade
and industry and other productive activities in rural areas.
To cater the needs weaker sections of the community.
SECOND NATIONALISATION
In order to move effectively, meet the growing development needs of the economy and to
promote welfare of people on the large scale six more commercial banks with Demand and
Time Liabilities (Deposits) with 200 cr were nationalized in April 1980. With the second
nationalization, the number of public sector banks increased to 28 (1st nationalization 14
banks, 2nd nationalization 6 bank and SBI and its seven associate banks).
Over the years with the directional change that has occurred in the banking system and the
fact that the banks responding favorably by evolving new strategies and innovative ideas
the credit structure of the country has become strong and steady. Recognizing the fact
that the banks are vital catalytic agents of growth that provide the basic input of credit, new
programmes with the social orientation have been designed with a view to assist the
society.
The names six banks nationalized were as under:
1. Corporation Bank
2. Oriental Bank of Commerce
3. Punjab & Sind Bank
4. Vijaya Bank
5. Andhra Bank
6. New bank of India
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After the nationalization of major banks the position altered rapidly and the flow of credit to
the rural areas increased considerably. Along with quantitative expansion of branch
network, there were qualitative improvements in the lending practices of the banks.
CURRENT SCENARIO
The Indian has finally worked up to the competitive dynamics of new Indian market and is
addressing the relevant issues take on the multifarious challenges of globalization. Banks that
employ IT solutions are perceived to be futuristic and proactive players capable of meeting the
multifarious requirement of large customer base. Private Banks have been fast on the uptake
and are reorienting their strategies using the Internet as a medium.
The Indian banking has come from a long from being a sleepy business institution to a highly
proactive and dynamic entity this transformation has been largely brought by the large dose of
liberalization and economic reforms that allowed exploring new business opportunities rather
than generating revenues from conventional streams.
The Indian industry has confidently hit the growth trial that pick in activity is best reflected in
the banking sector which after all is as candid a mirror of a country’s economy as you could
ever find. Most of the Indian financial intermediaries have been keeping pace with the
deepening market economy, riding the opportunity that come along with reforms even as they
brace themselves for increased competition both foreign and private by strengthening
prudential norms and leveraging technology to ensure that growth engine hums smoothly
along
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The essential function of a bank is to provide services related to the storing of value and the
extending credit. The evolution of banking dates back to the earliest writing, and continues in
the present where a bank is a financial institution that provides banking and other financial
services. Currently the term bank is generally understood an institution that holds a banking
license. Banking licenses are granted by financial supervision authorities and provide rights to
conduct the most fundamental banking services such as accepting deposits and
making loans. There are also financial institutions that provide certain banking services without
meeting the legal definition of a bank, a so called non-bank. Banks are a subset of the financial
services industry.
The word bank is derived from the Italian banca, which is derived from German and means
bench. The terms bankrupt and "broke" are similarly derived from banca rotta, which refers to
an out of business bank, having its bench physically broken. Money lenders in Northern Italy
originally did business in open areas, or big open rooms, with each lender working from his
own bench or table.
Typically, a bank generates profits from transaction fees on financial services or the interest
spread on resources it holds in trust for clients while paying them interest on the asset.
Services typically offered by banks
Although the type of services offered by a bank depends upon the type of bank and the
country, services provided usually include:
Directly take deposits from the general public and issue checking and saving
accounts.
Lend out money to companies and individuals (see money lender)
Cash checks.
Facilitate money transactions such as wire transfers and cashiers checks
Issue credit cards, ATM, and debit cards and online banking.
Storage of valuables, particularly in a safe deposit box.
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Types of banks
There are several different types of banks including:
Central banks usually control monetary policy and may be the lender of last resort in the event
of a crisis. They are often charged with controlling the money supply, including printing paper
money. Examples of central banks are the European Central Bank and the US Federal
Reserve Bank.
Investment banks underwrite stock and bond issues and advice on mergers. Examples of
investment banks are Goldman Sachs of the USA or Nomura Securities of Japan.
Merchant banks were traditionally banks which engaged in trade financing. The modern
definition, however, refers to banks which provide capital to firms in the form of shares rather
than loans. Unlike Venture capital firms, they tend not to invest in new companies.
Private banks manage the assets of the very rich. An example of a private bank is the Union
Bank of Switzerland. Savings banks write mortgages exclusively.
Offshore banks are banks located in jurisdictions with low taxation and regulation, such as
Switzerland or the Channel Islands. Many offshore banks are essentially private banks.
Commercial banks primarily lend to businesses (corporate banking)
Retail banks primarily lend to individuals. An example of a retail bank is Washington Mutual of
the USA. Universal banks engage in several of these activities. For example, Citigroup, a large
American bank, is involved in commercial and retail
lending; it owns a merchant bank (Citicorp Merchant Bank Limited) and an investment bank
(Salomon Smith Barney); it operates a private bank (Citigroup Private Bank); finally, its
subsidiaries in tax-havens offer offshore banking services to customers in other countries.
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Banks are prone to crisis
The traditional bank has an inherent tendency to crisis. This is because the bank borrows short
term and lends leveraged long term. The sum of deposits and the bank's capital will never
equal more than a modest percentage of the loans the bank has outstanding.
Even if liquidity is not a concern, if there is no run on the bank, banks can simply choose a bad
portfolio of loans, and lose more money than they have. The US Savings and Loan Crisis in
the late 1980s and early 1990s is such an incident.
Role in the money supply
A bank raises funds by attracting deposits, borrowing money in the inter-bank market, or
issuing financial instruments in the money market or a securities market. The bank then lends
out most of these funds to borrowers. However, it would not be prudent for a bank to lend out
all of its balance sheet. It must keep a certain proportion of its funds in reserve so that it can
repay depositors who withdraw their deposits. Bank reserves are typically kept in the form of a
deposit with a central bank. This behaviour is called fractional-reserve banking and it is a
central issue of monetary policy. Some governments (or their central banks) restrict the
proportion of a bank's balance sheet that can be lent out, and use this as a tool for controlling
the money supply. Even where the reserve ratio is not controlled by the government, a
minimum figure will still be set by regulatory authorities as part of banking supervision.
Regulation
The combination of the instability of banks as well as their important facilitating role in the
economy led to banking being thoroughly regulated. The amount of capital a bank is required
to hold is a function of the amount and quality of its assets. Major banks are subject to the
Basel Capital Accord promulgated by the Bank for International Settlements. In addition, banks
are usually required to purchase deposit insurance to make sure smaller investors are not
wiped out in the event of a bank failure. Another reason banks are thoroughly regulated is that
ultimately, no government can allow the banking system to fail. There is almost always a
lender of last resort—in the event of a liquidity crisis (where short term obligations exceed
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short term assets) some element of government will step in to lend banks enough money to
avoid bankruptcy.
Profitability
Large banks in the United States are some of the most profitable corporations, especially
relative to the small market shares they have. This amount is even higher if one counts the
credit divisions of companies like Ford, which are responsible for a large proportion of those
company's profits. For example, the largest bank, Citigroup, which for the past 3 years has
made more profit then any other company in the world, has only a 5 percent market share.
Now if Citigroup were to be as dominant in its industry as a Home Depot, Starbucks, or Wal
Mart in their respective industries, with a 30 percent market share, it would make more money
than the top ten non-banking US industries combined. In the past 10 years in the United
States, banks have taken many measures to ensure that they remain profitable while
responding to ever-changing market conditions. First, this includes the Gramm-Leach-Bliley
Act, which allows banks again to merge with investment and insurance houses. Merging
banking, investment, and insurance functions allows traditional banks to respond to increasing
consumer demands for "one stop shopping" by enabling the crossing selling of products
(which, the banks hope, will also increase profitability).
Second, they have moved toward risk based pricing on loans, which mean charging higher
interest rates for those people who they deem more risky to default on loans. This dramatically
helps to offset the losses from bad loans, lowers the price of loans to those who have better
credit histories, and extends credit products to high risk customers who would have been
denied credit under the previous system. Third, they have sought to increase the methods of
payment processing available to the general public and business clients. These products
include debit cards, pre-paid cards, smart-cards, and credit cards. These products make it
easier for consumers to conveniently make transactions and smooth their consumption over
time (in some countries with under-developed financial systems, it is still common to deal
strictly in cash, including carrying suitcases filled with cash to purchase a home). However,
with convenience there is also increased risk that consumers will mis-manage their financial
resources and accumulate excessive debt. Banks make money from card products through
interest payments and fees charged to consumers and companies that accept the cards.
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2. Introduction to the Organization
COMPANY PROFILE
ICICI BANK
Towards a Better Life
The ICICI Group was formed with the objective of supporting India’s growth and development.
While ICICI have transformed from a development bank to a diversified financial services
group, this vision continues to form the core of all ICICI do. ICICI partner the growth of Indian
business and help individuals improve their quality of life, through convenient access to
financial products and services. ICICI are focusing on the full spectrum of financial services
needs, from banking in rural areas to banking for the Indian community overseas. In addition to
financial services, ICICI support initiatives for socio-economic development through projects
focused on healthcare, education and access to markets. ICICI seek to improve access to
opportunity, and the ability to make the most of it, for businesses and individuals - to help
people move towards a better life.
Vision
To be the leading provider of financial services in India and a major global bank.
Mission
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ICICI will leverage our people, technology, speed and financial capital to:
be the banker of first choice for our customers by delivering high quality, world-class products
and services. expand the frontiers of our business globally. play a proactive role in the full
realisation of India’s potential. maintain a healthy financial profile and diversify our earnings
across businesses and geographies. maintain high standards of governance and ethics.
contribute positively to the various countries and markets in which ICICI operate. create value
for our stakeholders.
ORIGINATION
The development banking institution set up in the country, after Industrial Finance Corporation
(IFC); was the Industrial Credit Investment Corporation of India (ICICI).
It was set up during 1955 by government of India and World Bank. It was to be a private sector
development bank in so far as there was no participation by government in its share capital
Its main objectives when it was started were:-
to encourage and assist industrial investment in private sector
to provide foreign currency loans
to develop underwriting facilities in India, which was not taken up by IFC at that time
In broad operational terms, the ICICI assist
In the creation, expansion and modernization of private sector enterprises
In encouraging and promoting participation of private capital, both internal and
external, in the ownership of industrial investment through providing equity
participation, underwriting of new issue
TRANSFORMATION
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.
It was after liberalization in 1994 that the government also allowed private players in the
banking industry
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ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution, and
was its wholly-owned subsidiary.
ICICI bank was incorporated in1996 with its first branch in CHENNAI under schedule (II)
commercial banks which has given it the right that every account holder of this bank can claim
upto Rs 100000 from RBI if the bank goes into liquidation which is same in any nationalized
bank.
1984: Mr. S. Nadkarni appointed the sixth Chairman of ICICI.
India’s second largest bank in terms of assets. ICICI assigned higher than sovereign rating by
Moody’s. : ICICI Bank launched India’s first CDO (Collateralized Debt Obligation) Fund named
Indian Corporate Collateralized Debt Obligation Fund ICICI Group
OVERVIEW OF BANK
ICICI Banks are usually managed conservatively, partly because of regulatory limitations on
assets holdings and entry, but also because of the force of a tradition antagonistic of
speculative risk – taking and aggressive methods of soliciting business.
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ICICI and other banks mostly deal with other people’s money, i.e. depositors. Their own funds
in the form of share capital and resources generally do not constitute more than 5% of the total
resources of the banks. The deposits are either repayable on commercial bank to meet the
claims of the depositors on demands or on due dates will result in loss of credibility of the
bank. ICICI banks have, therefore to perform to difficult task of maintaining and equilibrium
between liquidity of profitability.
ICICI banks are established under private sector as well as under Government Sector in many
countries. Banking organizations have been established by industrialist, firm or joint stock
companies under private sector.
In some cases, the banks are under the joint management of State and Private Sector with
overall control of State, whether the banking activities should be in Private Sector or operate
under Government Supervision in a country.
There are many points, which are require to be considered in death for setting up banking
organization. These points very from situation to situation, time to time, country to country,
local to international and from small –scale to large activities.
Banking business in private sector is flourishing since 18th Centuries in Europe. Banking
operation in private sector are performed since ancient times in India.
The Government are keeping regular watch on private bank performance through their Central
Bank, Banking or other legislative laws. The functions of the banks (Private Sector or Public
Sector) are wide and diverse in Modern Economies. Banking activities under close watch of
Government. Huge public money is mobilized and canalized in different investment
GROWTH OF ICICI BANK
ICICI Bank is India’s second largest bank with total assets of about Rs. 3997.95 billion (US$
100 billion) at March 31, 2008 and Profit after tax of Rs. 41.58 billion for the year ended March
31, 2008.
ICICI Bank has a network of about 1367 branches and 3881 ATM’s in India and presence in
18th countries.
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ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian Financial Institution,
and was its wholly owned subsidiary. ICICI shareholding in ICICI Bank was reduced to 46%
through a public offering of shares in India in fiscal 1998, an equity offering in the form of
ADR’s listed on the NYSE in fiscal 2000, ICICI Bank’s acquisition of Bank of Madura Limited in
an all- stock amalgamation in fiscal 2001, and secondary market sales by ICICI to institutional
investors in fiscal 2001 and fiscal 2002. ICICI was formed in 1955 at the initiative of the World
Bank, the Government of India and representatives of Indian Industry.
ICICI Bank offers a wide range of banking products and financial services to corporate and
retail customers through a variety of delivery channels and through its specialised subsidiaries
and affiliates in the areas of investment banking, life and non-life insurance, venture capital
and asset management. ICICI Bank set up its international banking group in fiscal 2002 to
cater to the cross-border needs of clients and leverage on its domestic banking strengths to
offer products internationally. ICICI Bank currently has subsidiaries in the United Kingdom and
Canada, branches in Singapore and Bahrain and representative offices in the United States,
China, United Arab Emirates and Bangladesh.
ICICI Bank's equity shares are listed in India on the Stock Exchange, Mumbai and the National
Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on
the New York Stock Exchange (NYSE).As required by the stock exchanges, ICICI Bank has
formulated a Code of Business Conduct and Ethics for its directors and employees.
At October 31, 2004, ICICI Bank, with free float market capitalisation* of about Rs. 220.00
billion (US$ 5.00 billion) ranked third amongst all the companies listed on the Indian stock
exchanges. ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial
institution, and was its wholly-owned subsidiary. ICICI's shareholding in ICICI Bank was
reduced to 46% through a public offering of shares in India in fiscal 1998, an equity offering in
the form of ADRs listed on the NYSE in fiscal 2000, ICICI Bank's acquisition of Bank of Madura
Limited in an all-stock amalgamation in fiscal 2001, and secondary market sales by ICICI to
institutional investors in fiscal 2001 and fiscal 2002. ICICI was formed in 1955 at the initiative
of the World Bank, the Government of India and representatives of Indian industry. The
principal objective was to create a development financial institution for providing medium-term
and long-term project financing to Indian businesses. In the 1990s, ICICI transformed its
23
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.
After consideration of various corporate structuring alternatives in the context of the emerging
competitive scenario in the Indian banking industry, and the move towards universal banking,
the managements of ICICI and ICICI Bank formed the view that the merger of ICICI with ICICI
Bank would be the optimal strategic alternative for both entities, and would create the optimal
legal structure for the ICICI group's universal banking strategy. The merger would enhance
value for ICICI shareholders through the merged entity's access to low-cost deposits, greater
opportunities for earning fee-based income and the ability to participate in the payments
system and provide transaction-banking services. The merger would enhance value for ICICI
Bank shareholders through a large capital base and scale of operations, seamless access to
ICICI's strong corporate relationships built up over five decades, entry into new business
segments, higher market share in various business segments, particularly fee-based services,
and access to the vast talent pool of ICICI and its subsidiaries.
HISTORY OF ICICI BANK
1955 :The Industrial Credit and Investment Corporation of India Limited (ICICI) incorporated at
the initiative of the 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. Mr.A.Ramaswami Mudaliar elected
as the first Chairman of ICICI Limited.
ICICI emerges as the major source of foreign currency loans to Indian industry. Besides
funding from the World Bank and other multi-lateral agencies, ICICI was also among the first
Indian companies to raise funds from international markets.
1956 : ICICI declared its first dividend of 3.5%.
24
1958 : Mr.G.L.Mehta appointed the second Chairman of ICICI Ltd.
1960 : ICICI building at 163, Backbay Reclamation, inaugurated.
1961 : The first West German loan of DM 5 million from Kredianstalt obtained.
1967 : ICICI made its first debenture issue for Rs.6 crore, which was oversubscribed.
1969 : The first two regional offices in Calcutta and Madras set up.
1972 : The second entity in India to set up merchant banking services. : Mr. H. T. Parekh
appointed the third Chairman of ICICI.
1977 : ICICI sponsored the formation of Housing Development Finance Corporation. Managed
its first equity public issue
1978 : Mr. James Raj appointed the fourth Chairman of ICICI.
1979 : Mr.Siddharth Mehta appointed the fifth Chairman of ICICI.
1982 : ICICI became the first ever Indian borrower to raise European Currency Units. : ICICI
commences leasing business.
1985 : Mr. N.Vaghul appointed the seventh Chairman and Managing Director of ICICI.
1986 : ICICI became the first Indian institution to receive ADB Loans. ICICI, along with UTI,
set up Credit Rating Information Services of India Limited, India's first professional credit rating
agency. : ICICI promotes Shipping Credit and Investment Company of India Limited. : The
Corporation made a public issue of Swiss Franc 75 million in Switzerland, the first public issue
by any Indian entity in the Swiss Capital Market.
25
1987 : ICICI signed a loan agreement for Sterling Pound 10 million with Commonwealth
Development Corporation (CDC), the first loan by CDC for financing projects in India.
1988 : Promoted TDICI - India's first venture capital company.
1993 : ICICI Securities and Finance Company Limited in joint venture with J. P. Morgan set up.
: ICICI Asset Management Company set up.
1994 : ICICI Bank set up.
1996 : ICICI Ltd became the first company in the Indian financial sector to raise GDR. : SCICI
merged with ICICI Ltd. : Mr. K.V.Kamath appointed the Managing Director and CEO of ICICI
Ltd
1997 : ICICI Ltd was the first intermediary to move away from single prime rate to three-tier
prime rates structure and introduced yield-curve based pricing. : The name The Industrial
Credit and Investment Corporation of India Ltd changed to ICICI Ltd. : ICICI Ltd announced
the takeover of ITC Classic Finance.
1998 : Introduced the new logo symbolizing a common corporate identity for the ICICI Group. :
ICICI announced takeover of Anagram Finance.
1999 : ICICI launched retail finance - car loans, house loans and loans for consumer
durables. : ICICI becomes the first Indian Company to list on the NYSE through an issue of
American Depositary Shares.
2000 : ICICI Bank became the first commercial bank from India to list its stock on NYSE. :
ICICI Bank announces merger with Bank of Madura.
2001 : The Boards of ICICI Ltd and ICICI Bank approved the merger of ICICI with ICICI Bank.
26
2002: ICICI Ltd merged with ICICI Bank Ltd to create In (ICCDO Fund). : "E Lobby", a self-
service banking centre inaugurated in Pune. It was the first of its kind in India. : ICICI Bank
launched Private Banking. : 1100-seat Call Centre set up in Hyderabad : ICICI Bank Home
Shoppe, the first-ever permanent aggregation and display of housing projects in the county,
launched in Pune, : ATM-on-Wheels, India’s first mobile ATM, launched in Mumbai.
2003 : The first Integrated Currency Management Centre launched in Pune. : ICICI Bank
announced the setting up of its first ever offshore branch in Singapore. : The first offshore
banking unit (OBU) at Seepz Special Economic Zone, Mumbai, launched. : ICICI Bank’s
representative office inaugurated in Dubai. : Representative office set up in China. : ICICI
Bank’s UK subsidiary launched. : India’s first ever "Visa Mini Credit Card", a 43% smaller credit
card in dimensions launched. : ICICI Bank subsidiary set up in Canada. : Temasek Holdings
acquired 5.2% stake in ICICI Bank. : ICICI Bank became the market leader in retail credit in
India.
2004 : Max Money, a home loan product that offers the dual benefit of higher eligibility and
affordability to a customer, introduced. : Mobile banking service in India launched in
association with Reliance Infocomm. : India’s first multi-branded credit card with HPCL and
Airtel launched. : Kisan Loan Card and innovative, low-cost ATMs in rural India launched. :
ICICI Bank and CNBC TV 18 announced India’s first ever awards recognizing the
achievements of SMEs, a pioneering initiative to encourage the contribution of Small and
Medium Enterprises to the growth of Indian economy. : ICICI Bank opened its 500th branch in
India. : ICICI Bank introduced partnership model wherein ICICI Bank would forge an alliance
with existing micro finance institutions (MFIs). The MFI would undertake the promotional role of
identifying, training and promoting the micro-finance clients and ICICI Bank would finance the
clients directly on the recommendation of the MFI. : ICICI Bank introduced 8-8 Banking
wherein all the branches of the Bank would remain open from 8a.m. to 8 p.m. from Monday to
Saturday. : ICICI Bank introduced the concept of floating rate for home loans in India.
2005 : First rural branch and ATM launched in Uttar Pradesh at Delpandarwa, Hardoi. : "Free
for Life" credit cards launched wherein annual fees of all ICICI Bank Credit Cards were waived
off. : ICICI Bank and Visa jointly launched mChq – a revolutionary credit card on the mobile
27
phone. : Private Banking Masters 2005, a nationwide Golf tournament for high networth clients
of the private banking division launched. This event is the largest domestic invitation amateur
golf event conducted in India. : First Indian company to make a simultaneous equity offering of
$1.8 billion in India, the United States and Japan. : Acquired IvestitsionnoKreditny Bank of
Russia. : ICICI Bank became the largest bank in India in terms of its market capitalization. :
ICICI Bank became the first private entity in India to offer a discount to retail investors for its
follow-up offer.
2006 : ICICI Bank became the first Indian bank to issue hybrid Tier-1 perpetual debt in the
international markets. : ICICI Bank subsidiary set up in Russia. : Introduced a new product -
‘NRI smart save Deposits’ – a unique fixed deposit scheme for nonresident Indians. :
Representative offices opened in Thailand, Indonesia and Malaysia. : ICICI Bank became the
largest retail player in the market to introduce a biometric enabled smart card that allow
banking transactions to be conducted on the field. A low-cost solution, this became an effective
delivery option for ICICI Bank’s micro finance institution partners. : Financial counseling centre
Disha launched. Disha provides free credit counseling, financial planning and debt
management services. : Bhoomi puja conducted for a regional hub in Hyderabad, Andhra
Pradesh.
2007 : ICICI Bank‘s USD 2 billion 3-tranche international bond offering was the largest bond
offering by an Indian bank. : Sangli Bank amalgamated with ICICI Bank. : ICICI Bank raised Rs
20,000 crore (approx $5 billion) from both domestic and international markets through a follow-
on public offer. : ICICI Bank’s GBP 350 million international bond offering marked the inaugural
deal in the sterling market from an Indian issuer and also the largest deal in the sterling market
from Asia. : Launched India’s first ever jewellery card in association with jewelry major Gitanjali
Group. : ICICI Bank became the first bank in India to launch a premium credit card -- The Visa
Signature Credit Card. : Foundation stone laid for a regional hub in Gandhinagar, Gujarat. :
Introduced SME Toolkit, an online resource centre, to help small and medium enterprises start,
finance and grow their business. : ICICI Bank signed a multi-tranche dual currency US$ 1.5
billion syndication loan agreement in Singapore. : ICICI Bank became the first private bank in
India to offer both floating and fixed rate on car loans, commercial vehicles loans, construction
equipment loans and professional equipment loans. : In a first of its kind, nation wide initiative
28
to attract bright graduate students to pursue a career in banking, ICICI Bank launched the
"Probationary Officer Programme". : Launched Bank@home services for all savings and
current a/c customers residing in India : ICICI Bank Eurasia LLC inaugurated its first branch at
St Petersburg, Russia.
2008 : ICICI Bank enters US, launches its first branch in New York : ICICI Bank enters
Germany, opens its first branch in Frankfurt : ICICI Bank launched iMobile, a breakthrough
innovation in banking where practically all internet banking transactions can now be simply
done on mobile phones. : ICICI Bank concluded India's largest ever securitization transaction
of a pool of retail loan assets aggregating to Rs. 48.96 billion (equivalent of USD 1.21 billion) in
a multi-tranche issue backed by four different asset categories. It is also the largest deal in
Asia (ex-Japan) in 2008 till date and the second largest deal in Asia (ex-Japan & Australia)
since the beginning of 2007. : ICICI Bank launches ICICIACTIVE - Banking Interactive Service
- along with DISHTV, which will allow viewers to see information about the Bank's products
and services and contact details on their DISHTV screens. : ICICI Bank and British Airways
launch co-branded credit card, which is designed to earn accelerated reward points to the card
holders with every British Airways flight or by spending on everyday purchases : ICICI Bank
Board appoints Mr K. V. Kamath as non-executive Chairman and Ms Chanda Kochhar as
Managing Director & CEO effective May 1, 2009, while the existing non-executive Chairman
Mr N Vaghul retires after completing his term on April 30, 2009 2009 : ICICI bank ties up with
BSNL Cell One for bill payments, it will facilitate bill payment for BSNL Cell One users through
www.icicibank.com across all the 27 circles of BSNL. : ICICI Bank Limited acting through its
Hong Kong Branch (ICICI Bank) signed an agreement on Export Credit Line totaling up to
US$100 million with the Japan Bank for International Cooperation (JBIC) which constitutes the
international wing of Japan Finance Corporation. : ICICI Bank Limited acting through its Hong
Kong Branch (ICICI Bank) signed a loan agreement with the Export-Import Bank of China
(China Exim) for USD 98 million under the Two- step Buyer Credit (Export Credit)
arrangement. ICICI Bank is the first Indian Bank to have entered into this arrangement with
China Exim : ICICI Bank with Singapore Airlines launched “ICICI Bank Singapore Airlines Visa
Platinum Credit Card”, the Card has exclusive privileges especially designed for the members.
29
Board Member
Mr. K. V. Kamath, Chairman
Mr. Sridar Iyengar
Mr. Lakshmi N. Mittal
Mr. Narendra Murkumbi
Dr. Anup K. Pujari
Mr. Anupam Puri
Mr. M.S. Ramachandran
Mr. M.K. Sharma
Mr. P.M. Sinha
Prof. Marti G. Subrahmanyam
Mr. T.S. Vijayan
Mr. V. Prem Watsa
Ms. Chanda Kochhar, Managing Director & CEO
Mr. Sandeep Bakhshi, Executive Director
30
Mr. Sonjoy Chatterjee, Executive Director
Mr. K. Ramkumar, Executive Director
Mr. N. S. Kannan, Executive Director & CFO
Awards & Recognitions
ICICI Bank 2009
ICICI Bank bags the “Best bank in SME financing (Private Sector)” at the Dun &
Bradstreet Banking awards 2009.
ICICI Bank NRI services wins the “Excellence in Business Model Innovation Award” in the
eighth Asian Banker Excellence in Retail Financial Services Awards Programme.
ICICI Bank's Rural Micro Banking and Agri-Business Group wins WOW Event &
Experiential Marketing Award in two categories - “Rural Marketing programme of the
year” and “Small Budget On Ground Promotion of the Year”. These awards were given
for Cattle Loan 'Kamdhenu Campaign' and 'Talkies on the move campaign' respectively.
ICICI Bank's Germany Branch has been certified by “Stiftung Warrentest”. ICICI Bank is
ranked 2nd amongst 57 savings products across 19 banks
ICICI Bank Germany won the yearly banking test of the investor magazine €uro in the
“call money”category.
The ICICI Bank was awarded the runner's up position in Gartner Business Intelligence
and Excellence Award for Asia Pacific for its Business Intelligence functions.
ICICI Bank's Organisational Excellence Group was recently awarded ISO 9001:2008
31
certification by TUV Nord. The scope of certification comprised processes around
consulting and capability building on methods of quality & improvements.
ICICI Bank has been awarded the following titles under The Asset Triple A Country
Awards for 2009:
• Best Transaction Bank in India
• Best Trade Finance Bank in India
• Best Cash Management Bank in India
• Best Domestic Custodian in India
ICICI Bank has bagged the Best Cash Management Bank in India award for the second
year in a row. The other awards have been bagged for the third year in a row.
ICICI Bank Canada received the prestigious Canadian Helen Keller Award at the
Canadian Helen Keller Centre's Fifth Annual Luncheon in Toronto. The award was given
to ICICI Bank its long-standing support to this unique training centre for people who are
deaf-blind.
ICICI Bank 2008
The Asset Triple A Country Awards for Best Domestic Bank in India.
ICICI Bank wins the "Best Bank in India" Award from NDTV Profit-Outlook Money
ICICI Bank wins the "Most Preferred Brand of Auto Loans" Award and the "Most
Preferred Brand of Credit Cards" Award from CNBC Awaaz
Mr K. V. Kamath, MD & CEO, ICICI Bank, receives the Lifetime Achievement Award at
32
the NDTV Profit Business Leadership Awards 2008
Ms. Chanda Kochhar, Joint MD & CFO, ICICI Bank, ranked 25th in Fortune International
Power 50 list
Ms Chanda Kochhar, Joint MD & CFO, ICICI Bank and Ms Madhabi Puri-Buch,
Executive Director, ICICI Bank, selected among the 25 Most Powerful Women in Indian
business by Business Today
ICICI Bank wins the 2008 Symantec visionary awards, recognising the way the Bank
secures and manages systems and information.
ICICI Bank wins the 'Excellence in Remittance Business 2008' award by The Asian
Banker
Mr. K.V. Kamath, MD & CEO, ICICI Bank receives the UK Trade & Investment Award
(2008), in recognition of the significant contribution made towards India-UK trade
relationship and visionary leadership.
ICICI Bank NRI Services wins the World Finance (London) Award for Best Bank for NRI
Services Worldwide, 2008
ICICI Group Global Private Clients wins the World Finance (London) Award for
Excellence in Private Banking Award for APAC Region 2008
ICICI Bank wins Finance Asia Country Awards for Achievement 2008 for
• Best Trade Finance Bank
• Best Foreign Exchange Bank
• Best Private Bank
ICICI Bank wins the 'Excellence in Remittance Business 2007' award by The Asian
Banker
33
Ms. Madhabi Puri Buch, ED, ICICI Bank wins FICCI's "Young Women Achievers" Award
Mr. K. V. Kamath, MD & CEO, ICICI Bank wins "The Asian Banker Leadership
Achievement Award" for the Asia Pacific and Gulf Region 2007
EuroWeek award for “Most Improved Market Profile”
The award is designed to recognise the institution that has been most successful in
building its own niche in Asia's competitive syndicated loan market
The Asset Triple A Transaction Banking Awards, 2008
• Best Trade Finance Bank in India
• Best Transaction Bank in India
• Best Cash Management Bank in India
• Best Domestic Custodian in India
Global Finance Award for:
• Best "Trade Finance Bank and Provider" in India
• Best "Consumer Internet Bank" in India
ICICI Bank wins the Gold Shield for " Excellence in Financial Reporting" by Institute of
Chartered Accountant of India (ICAI) for the Year ended March 31, 2007
Mr. K. V. Kamath, MD & CEO, ICICI Bank awarded the "Padma Bhushan"
ICICI Bank 2007
ICICI Bank won the "Most Customer Responsive Company" award in the Banking and
Financial Services vertical at The Economic Times - Avaya Global Connect Customer
Responsiveness Awards 2007
34
Asset Asian Awards 2007 Triple A
1. Country Awards for the Best Domestic Bank in India
2. Triple A House and Deal Awards for
Best Investment Grade Bond- India
Best follow on offering for The Asset 2007
Best Syndicated Loan
ICICI Bank won "The Bankers Award" for the Bank of the Year (India)
Mr. K. V. Kamath is Forbes Asia's Businessman of the Year.
ICICI Bank named as one of the "Fabulous 50 companies in Asia" by Forbes Asia
Mr. K. V. Kamath won the Lifetime achievement Award at the seventh Annual Teacher's
Achievement Awards.
Ms. Chanda Kochhar won the Teachers Achievement Award in the business category.
Best Regional Private Bank - Asia Pacific Award at the 17th Private Banker International
Awards.
Mr. K. V. Kamath featured among Asiamoney's top 100 most powerful businessmen
from Asia.
Ms Chanda Kochhar ranked 33rd in the Fortune's List of 50 Most Powerful Women in
Global Business.
ICICI Bank was one of the four Indian companies to make it to the global list of Top
Companies for Leaders 2007, according to a survey conducted by Hewitt Associates in
partnership with the RBL group and Fortune magazine.
ICICI Bank adjudged winner of the annual CIO 100 awards in recognition of the
35
organization's pre-eminence in the area of Innovative technology deployment.
Ms Chanda Kochhar featured in the list of Business Today's 25 most powerful women
leaders.
Best private sector bank by Outlook Money NDTV Profits Awards 2007
The Uptime Champion Awards 2007
The Economic Times Business Leader of the Year Award for Mr.K.V.Kamath
CNBC Awaaz Consumer Awards 2007 for:
Most Preferred brand for Auto Loans
Most Preferred brand for Credit Cards
Most Preferred brand for Financial Advisory Services
Most Preferred brand for Home Loans.
Global Finance Awards for :
The Best Consumer Internet Bank in India.
The Best Corporate / Institutional Internet Bank in India.
ICICI Bank has won the Euromoney Award for the "Best Bank in Asia" and "Best Bank
in India"
Asia's Best Financial Borrower 2007 – Euromoney
Best Bank in the New Private Sector Bank category By Financial Express.
Excellence in Remittance Business Award, 2006 from Asian Banker.
ICICI Bank has won the Reader’s Digest Trusted Brand Gold Award for the Bank
category in India in 2007.
36
ICICI Bank
2006
Bank of the Year 2006 India by the Banker
THE ASSET TRIPLE AAA Awards for :
Best Transaction Bank in INDIA
Best Trade Finance in India
Best Domestic Custody in India
Business Standard's Banker of the Year for Mr.K.V.Kamath
CNBC-TV18 India Business Leader Award for Mr. K. V. Kamath
Business India's Best Bank of the Year 2006
Ms.Chanda Kochhar featured on Fortune's 50 Most Powerful Women in International
Business.
NDTV Profit Business Leadership Award in the Banking category.
Ms. Kalpana Morparia and Ms. Lalita Gupte featured on Forbes Most Powerful
Women
CII National Award for Energy Management
Business Baron - Most Admired Bank
Global Finance Award for World's Best Foreign Exchange Bank from India" and the
"World's Best Trade Finance from India"
Global Finance Awards for :
Best Integrated Consumer Bank Site in Asia
Bill Presentment and Payment in Asia
Best Consumer Internet Bank in India
Best Corporate/ Institutional Internet Bank in
India
ICICI Bank wins three awards for outstanding performance from Asian Banker
Best Retail Bank India
Excellence in Multi Channel Distribution
Excellence in Automobile Lending Award
Reader's Digest India - Most Trusted Brand Award for 2006 voted by consumers
37
ICICI Bank
2005
The Asian Banker Leadership Achievement Award 2005 for India for
Mr.K.V.Kamath
Businessman of the Year Award for Mr.K.V.Kamath by Business India
JRD Tata Corporate Leadership Award for Mr.K.V.Kamath
Best Local Cash Management Bank Overall for Domestic Cash Management Services -
Asiamoney
Best Local Cash Management Bank for Most Innovative Cash Management Solutions -
Asiamoney
Listed on Forbes' Asia's Fab 50
Listed in Business Week Top 50 Performers
Economic Times Award for Businesswoman Of The Year
Triple AAA Best Cash Management Country Award in India" by The Asset
Bank of the Year Award for India” by The Banker
Best Bank in India” by Euromoney
Best Integrated Consumer Bank Site in Asia by Global Finance
Best Consumer Internet Bank in India by Global Finance
Best Corporate / Institutional Internet Bank by Global Finance
Building Talent Enterprise-wise Award for Excellence in Learning from the American
Society for Training and Development
38
ICICI BANK
ORIGINATION
The development banking institution set up in the country, after Industrial Finance
Corporation (IFC); was the Industrial Credit Investment Corporation of India (ICICI).
It was set up during 1955 by government of India and World Bank. It was to be a private
sector development bank in so far as there was no participation by government in its share
capital
Its main objectives when it was started were:-
to encourage and assist industrial investment in private sector
to provide foreign currency loans
to develop underwriting facilities in India, which was not taken up by IFC at that time
In broad operational terms, the ICICI assist
In the creation, expansion and modernisation of private sector enterprises
In encouraging and promoting participation of private capital, both internal and
external, in the ownership of industrial investment through providing equity
participation, underwriting of new issue
39
TRANSFORMATION
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.
It was after liberalization in 1994 that the government also allowed private players in the
banking industry
ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution,
and was its wholly-owned subsidiary.
ICICI bank was incorporated in1996 with its first branch in CHENNAI under schedule (II)
commercial banks which has given it the right that every account holder of this bank can
claim upto Rs 100000 from RBI if the bank goes into liquidation which is same in any
nationalized bank.
40
OVERVIEW OF BANK
ICICI Bank is India's second-largest bank with total assets of Rs. 3,793.01 billion (US$ 75
billion) at March 31, 2009 and profit after tax Rs. 37.58 billion for the year ended March 31,
2009. The Bank has a network of 1,442 branches and about 4,721 ATMs in India and
presence in 18 countries. ICICI Bank offers a wide range of banking products and financial
services to corporate and retail customers through a variety of delivery channels and through
its specialised subsidiaries and affiliates in the areas of investment banking, life and non-life
insurance, venture capital and asset management. The Bank currently 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.
Our UK subsidiary has established branches in Belgium and Germany.
ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and the National
Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on
the New York Stock Exchange (NYSE).
41
History
ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution, and
was its wholly-owned subsidiary. ICICI's shareholding in ICICI Bank was reduced to 46%
through a public offering of shares in India in fiscal 1998, an equity offering in the form of ADRs
listed on the NYSE in fiscal 2000, ICICI Bank's acquisition of Bank of Madura Limited in an all-
stock amalgamation in fiscal 2001, and secondary market sales by ICICI to institutional
investors in fiscal 2001 and fiscal 2002. ICICI was formed in 1955 at the initiative of the World
Bank, the Government of India and representatives of Indian industry. The principal objective
was to create a development financial institution for providing medium-term and long-term
project financing to Indian businesses. 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.
After consideration of various corporate structuring alternatives in the context of the emerging
competitive scenario in the Indian banking industry, and the move towards universal banking,
the managements of ICICI and ICICI Bank formed the view that the merger of ICICI with ICICI
Bank would be the optimal strategic alternative for both entities, and would create the optimal
legal structure for the ICICI group's universal banking strategy. The merger would enhance
value for ICICI shareholders through the merged entity's access to low-cost deposits, greater
opportunities for earning fee-based income and the ability to participate in the payments
system and provide transaction-banking services. The merger would enhance value for ICICI
Bank shareholders through a large capital base and scale of operations, seamless access to
ICICI's strong corporate relationships built up over five decades, entry into new business
segments, higher market share in various business segments, particularly fee-based services,
and access to the vast talent pool of ICICI and its subsidiaries. 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
42
ICICI Bank in January 2002, by the High Court of Gujarat at Ahmedabad in March 2002, and
by the High Court of Judicature at Mumbai and the Reserve Bank of India in April 2002.
Consequent to the merger, the ICICI group's financing and banking operations, both wholesale
and retail, have been integrated in a single entity.
ICICI Bank has formulated a Code of Business Conduct and Ethics for its directors and
employees.
ICICI Bank is India's second-largest bank with total assets of about Rs.146,214 crore at
December 31, 2004 and profit after tax of Rs. 1,391 crore in the nine months ended December
31, 2004 (Rs. 1,637 crore in fiscal 2004). ICICI Bank has a network of about 505 branches and
extension counters and about 1,850 ATMs. ICICI Bank offers a wide range of banking products
and financial services to corporate and retail customers through a variety of delivery channels
and through its specialised subsidiaries and affiliates in the areas of investment banking, life
and non-life insurance, venture capital and asset management. ICICI Bank set up its
international banking group in fiscal 2002 to cater to the cross-border needs of clients and
leverage on its domestic banking strengths to offer products internationally. ICICI Bank
currently has subsidiaries in the United Kingdom and Canada, branches in Singapore and
Bahrain and representative offices in the United States, China, United Arab Emirates and
Bangladesh.
ICICI Bank's equity shares are listed in India on the Stock Exchange, Mumbai and the National
Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on
the New York Stock Exchange (NYSE).As required by the stock exchanges, ICICI Bank has
formulated a Code of Business Conduct and Ethics for its directors and employees.
At October 31, 2004, ICICI Bank, with free float market capitalisation* of about Rs. 220.00
billion (US$ 5.00 billion) ranked third amongst all the companies listed on the Indian stock
exchanges. ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial
institution, and was its wholly-owned subsidiary. ICICI's shareholding in ICICI Bank was
reduced to 46% through a public offering of shares in India in fiscal 1998, an equity offering in
the form of ADRs listed on the NYSE in fiscal 2000, ICICI Bank's acquisition of Bank of Madura
Limited in an all-stock amalgamation in fiscal 2001, and secondary market sales by ICICI to
institutional investors in fiscal 2001 and fiscal 2002. ICICI was formed in 1955 at the initiative
43
of the World Bank, the Government of India and representatives of Indian industry. The
principal objective was to create a development financial institution for providing medium-term
and long-term project financing to Indian businesses. 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.
After consideration of various corporate structuring alternatives in the context of the emerging
competitive scenario in the Indian banking industry, and the move towards universal banking, the
managements of ICICI and ICICI Bank formed the view that the merger of ICICI with ICICI Bank
would be the optimal strategic alternative for both entities, and would create the optimal legal structure
for the ICICI group's universal banking strategy. The merger would enhance value for ICICI
shareholders through the merged entity's access to low-cost deposits, greater opportunities for earning
fee-based income and the ability to participate in the payments system and provide transaction-banking
servic
44
BOARD MEMBERS
Board Members
Mr. K. V. Kamath, Chairman
Mr. Sridar Iyengar
Mr. Lakshmi N. Mittal
Mr. Narendra Murkumbi
Dr. Anup K. Pujari
Mr. Anupam Puri
Mr. M.S. Ramachandran
Mr. M.K. Sharma
Mr. P.M. Sinha
Prof. Marti G. Subrahmanyam
Mr. T.S. Vijayan
Mr. V. Prem Watsa
Ms. Chanda Kochhar, Managing Director & CEO
Mr. Sandeep Bakhshi, Executive Director
Mr. Sonjoy Chatterjee, Executive Director
Mr. K. Ramkumar, Executive Director
Mr. N. S. Kannan, Executive Director & CFO
Board Committees
Audit Committee Board Governance & Remuneration Committee
Mr. Sridar IyengarMr. Narendra Murkumbi Mr. M. K. Sharma
Mr. M. K. SharmaMr. K. V. Kamath Mr. Anupam PuriMr. P. M. Sinha Prof. Marti G. Subrahmanyam
45
Customer Service Committee Credit Committee
Mr. K. V. KamathMr. Narendra MurkumbiMr. M.K. SharmaMr. P.M. SinhaMs. Chanda Kochhar
Mr. K. V. KamathMr. Narendra Murkumbi Mr. M .K. SharmaMr. P. M. SinhaMs. Chanda Kochhar
Fraud Monitoring Committee Risk Committee
Mr. M. K. SharmaMr. K. V. Kamath Mr. Narendra Murkumbi Ms. Chanda KochharMr. Sandeep Bakhshi
Mr. K. V. KamathMr. Sridar IyengarProf. Marti G. SubrahmanyamMr. V. Prem Watsa Ms. Chanda Kochhar
Share Transfer & Shareholders'/ Investors' Grievance Committee
Committee of Directors
Mr. M. K. SharmaMr. Narendra MurkumbiMr. N. S. Kannan
Ms. Chanda KochharMr. Sandeep Bakhshi Mr. Sonjoy ChatterjeeMr. K. Ramkumar Mr. N. S. Kannan
Investment
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
46
Government of India Bonds Investment in Mutual Funds Initial Public Offers by Corporates 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)
ICICI Bank Stock Quote & Chart05/08/09 15:00:10 EST • NYSE • 22.45 • +1.0600 • +4.9556 %
Quotes delayed 15 minutes for NASDAQ. 20 minutes for NYSE and AMEX. Market Data provided by Interactive Data. Powered and Implemented by Interactive Data Managed Solutions.Detailed QuoteInteractive Stock Chart
ICICI Bank Financial Ratios
CompanyIndustryMedian
MarketMedian1
Price/Sales Ratio 0.35 0.97 1.03Price/Earnings Ratio -- 13.54 12.90
Price/Book Ratio 0.45 0.67 1.08Price/Cash Flow Ratio 9.66 6.12 6.481 Public companies trading on the New York Stock Exchange, the American Stock Exchange, and the NASDAQ National Market.
47
Detailed ICICI Bank Financial Ratios
ICICI Bank Competitive IntelligenceCanara Bank Punjab National Bank State Bank of India
Annual Sales ($ mil.) 3,955.2 2,315.0 14,240.0Employees 45,260 57,316 179,205
Market Cap ($ mil.) -- -- --
PRODUCT OFFERED BY ICICI BANK
1. RURAL SAVINGS ACCOUNT.
You can approach us through your local Business Correspondent. Rural Savings Account is a
Zero balance account and hence there is no minimum balance requirement. Interest earned on
your Rural Savings Account balance shall be credited to your account on a half yearly basis in
48
the months of September and March.You can change the nominee(s) by making a declaration
to that effect, in the appropriate form, which is available with the Business Correspondent.
Features
The Rural Savings Account will be available through Business Correspondents.
The account is zero balance with no initial deposit.
The Customer is provided with an E-passbook.
All transactions in the accounts are done only after a biometric authentication.
Nomination facility is available.
Interest is payable half-yearly.
Nomination Facility
Nomination facility available for bank deposits.
There can be only one Nominee for a deposit account whether held singly or jointly.
A person legally empowered to operate a minor's account can file a nomination on
behalf of the minor.
Applicants can make nomination by filling up the Form prescribed under the Banking
Companies (Nomination) Rules 1985.
The nomination details can be changed during the subsistence of the account
relationship by filling up the Form prescribed under the Banking Companies
(Nomination) Rules 1985.
For more details approach your bank.
Eligibility
The account is available only for,
Resident Indians above the age of 18 years. NRIs and foreign nationals are not
49
eligible for this Account.
Individuals residing in rural areas.
Documentation
Applicants must satisfy the following documentation requirements:
Identity proof
Proof of communication address
Identity Proof
(Any one of the
following)
Proof of communication address
(Any one of the following)
Original letter of
introduction from
existing bank along
with KYC cheque of
the same Bank
Introduction by an existing and satisfactory customer as
address proof
Driving License –
Book type or
laminated &
embossed
Latest Electricity Bill
Voter Identity Card
with KYC cheque for
operating accounts.
Cash can be accepted
for Term deposits.
Certificate from the postal office confirming address of applicant
Employee Identity
Card
Original Letter from Employer certifying the residential address
of applicant. Signature of the employee has to be attested on
the letter.
50
PAN Card Telephone bills from any telephone service providers and
mobile service providers (KYC cheque mandatory for mobile
service providers)
Defence Dependent's
card
Consumer gas connection card/book/Pipe Gas bill (same as
electricity bill)
Ex-Service Man Card Certificate from the ward/equivalent rank officer, maintaining
election roll, certifying address of the applicant
Bar Council/Indian
Medical Association
Card/Senior Citizen
Card
Registered and valid Lease/ Leave agreement with copies of
utility bills
PIO Booklet for
returning NRIs
Post Office Savings Pass Book with KYC cheque
MAPIN card Statement of account or Pass Book of a scheduled commercial
bank with entries of at least last 3 months alongwith KYC
cheque
Premium Receipt from any life insurance company
Certificate by Village Extension Officer (VEO)/Village Head or
equal rank officers
Domicile Certificate with communication address and
photograph
Accepted as both Identity and Address proof
(Any one of the following)
Passport
Arms License issued by State/Central Government of India authorities
Freedom fighter's pass issued by Ministry of Home affairs, Government of India with
photograph of applicant
Pension payment order/book/Card issued by State/Central Government of India.
Printed Ration Card with Photograph of applicant.
51
House hold Card with photograph issued by Govt of Andhra Pradesh
ID card with photograph issued by Govt of Jammu and Kashmir
Bank Pass Book with photograph issued by SBI and its subsidiaries or Nationalised
Banks
Photo Social Security Card (Smart Card) issued by Central/State Govts or Union
territories.
Certificate by Village Extension Officer (VEO)/Village Head or equal rank officers (with
Photograph)
Certificate by Affiliate (Business Savings Bank Account: 3.50%
Correspondent)
Terms and Conditions
All standard terms and conditions for savings bank accounts as published on the ICICI Bank
website at www.icicibank.com (“Terms”) for the establishment of a relationship and the
opening and operating of savings bank accounts with ICICI Bank are applicable to the rural
savings account. In addition to the Terms, the terms and conditions specific to the rural
savings account (“Special Terms”) are as follows:
1. For the purpose of the Special Terms, any reference to “ Saving Account ” shall mean the
Rural Savings Account.
2. For the purpose of the Special Terms, any reference to “Customer ” shall mean the Rural
Savings Accountholder.
3. For the purpose of the Special Terms, any reference to “ KYC Card ” shall mean a card
issued by ICICI Bank to the Customer that only carries the KYC details of the Customer (i.e
52
name, age, date of birth, address and father's name), his signature/ thumb impression and the
photograph.
4. The Saving Account is a zero balance account and would not require maintenance of any
minimum balance by the Customer.
5. ICICI Bank will issue a KYC Card to the Customer for the purposes of Authentication and
the Customer is required to produce the KYC Card at the time of operating his Savings
Account.
6. Chequebook facility, ATM access, debit card facility, phone banking facility, mobile banking
facility, access to INFINITY, any where banking facility and Internet banking facility will not be
extended to the Customers.
7. The terms and conditions governing the usage and issuance of the KYC Card would be as
set forth in the terms and conditions for banking services provided by ICICI Bank through
Business Correspondents, a copy of which shall be provided to the Customer.
8. Fee and Charges
i. ICICI Bank will charge an annual maintenance fee for the Savings Account along with
applicable taxes, as may be specified by ICICI Bank from time to time.
ii. ICICI Bank will provide account statements at such interval as may be decided by ICICI
Bank, free of cost.
iii. Schedule of all fees and charges applicable to the Savings Account would be put up on
the ICICI Bank website or would be communicated to the Customer in any mode as may be
decided by ICICI Bank.
9. Transaction Charges
i. For the Savings Account, the Customer will have a certain number of free transactions per
month at the designated Business Correspondents location, any transaction over and above
53
that will be charged along with applicable taxes on a per transaction basis. Any balance
enquiry through the Business Correspondent shall not be considered while counting the free
transactions.
ii. No branch access shall be permitted except transactions for which the charges shall be
levied upon the Customer. Any transaction at the base branch will be charged at a per
transaction basis/ as amended by the ICICI Bank from time to time.
iii. All banking transactions are chargeable at normal charges as decided and communicated
by ICICI Bank from time to time.
iv. Normal transaction charges for issuance/revalidation/cancellation of DD/PO will be levied.
10. A Customer is not entitled to request for transfer of his/her Savings Account from one
branch to another branch of ICICI Bank or from the designated Business Correspondent to
another Business Correspondent.
11. Standing instructions including for transferring funds from the Savings Account to Fixed
Deposit or Recurring Deposit accounts by the Customer shall not be accepted by ICICI Bank
or the designated Business Correspondent.
12. Transactions involving levy of charges shall be informed to the Customer at the time of
account opening. ICICI Bank shall endeavour to give notice adequately in advance in case of
change in such charges and such notice, provided by ICICI Bank in the manner specified in
the Terms or in any other manner whatsoever, of any changes in charges or any notice from
ICICI Bank for payment of amounts at the changed rate(s), shall be treated as sufficient and
reasonable notice to the Customer and ICICI Bank shall not be bound to issue any further
notice of such changes to the Customer.
13. Any government charges, duties or taxes, whether past present or future, whether direct or
indirect, devolving from the provision of any facility shall, if imposed upon ICICI Bank (either
directly or indirectly), be debited to the Customer's account.
54
14. A cash withdrawal limit from the Saving Account would be set for the Customer, in
accordance to the average balance maintained by all the Customers with the Business
Correspondent. This limit will be communicated to the Customer from time to time. Any
withdrawal by the Customer beyond the limit would have to be made 24 hours in advance.
15. In the event of the customer providing a certification by the Business Correspondent as
necessary KYC documentation, the following conditions would apply;
i. In the event of the credit balance of the Customer crossing Rs 50,000/- and total credits
crossing Rs.1,00,000/- per financial year, KYC documents as per ICICI Bank policy would be
required to be submitted. A communication shall be sent to the Customer and the designated
Banking Correspondent in the event of credit balance of the Customer crossing Rs 40,000/-
and total credits crossing Rs.80,000/- per financial year. The Savings Account shall be frozen
in event of credit balance of the Customer crossing Rs 50,000/- and total credits crossing
Rs.1,00,000/- per financial year and the requisite KYC documentation not being undertaken. In
the absence of providing the additional KYC documents, the Savings Account of the Customer
will remain frozen for a period of sixty (60) days from the date of the communication, post that
the Savings Account shall be closed.
16. ICICI Bank, at its absolute discretion, may revise the fees/charges from time to time. The
revised fee/charges will be published on ICICI Bank's website www.icicibank.com . ICICI
Bank will not provide any individual intimation/ communication in this regard to the Customer.
17. ICICI Bank, at its absolute discretion, may revise the per transaction limit/ daily transaction
limit from time to time. The revised limits will be published on ICICI Bank's website
www.icicibank.com and communicated through the Business Correspondent.
18. The Special Terms contained herein are in addition to and not in derogation of the Terms.
However, in case of any inconsistency between these Special Terms and the Terms, these
Special Terms will be applicable.
55
19. ICICI Bank reserves the right to alter, amend or revise any policy, benefit or feature of the
Savings Account as also alter any of these Terms and may notify the Customer of any
changes to the Terms in any manner it considers appropriate.
20. The Special Terms as specified herein and as amended by ICICI Bank from time to time,
shall be deemed to have unconditionally agreed to and accepted by the Customer by
performing a Transaction with the Business Correspondent
21. All capitalized terms not defined herein shall have the meaning ascribed to it in the Terms
and/or the terms and conditions for usage and issuance of e-passbook.
Disclaimer:
*ICICI Bank may, at its sole discretion, utilise the services of external service provider/s or
agent/s and on such terms as required or necessary, in relation to its products
Service Charges and Fees
Rural Saving Account
Available toAll locations through Business
Correspondents
Eligibility Resident Indian, >18yrs
Minimum balance Zero
Charges for non
maintenance thereof Zero
Base Branch
Transaction No limit
Savings account
56
Where the liquidity is concerned the most common and basic option offered by any bank savings
account the ease with which one can access money from this account is unparalleled
Customer deposit their personal cash to earn interest at the nominal rate of interest it’s a sort of safety
vault taken by customer to keep their idle cash safely, lying with them
BENEFITS THEY GET BY OPENING THIS ACCOUNT:
• Having a good relationship with banks
• Security against their deposits
• Convenience in withdrawing their own money
• You can access your money via a debit card. When you make a payment on your DEBIT
CARD it immediately gets deducted from your bank account
• Through automated teller machine you can freely access your bank account
• Cheque book facility permits you to transfer your fund
• The internet banking facility provides you easy and secure access to your account
• Anywhere banking entitles you to deposit or withdraw cash upto prespecified limit across all
the bank branches across the country
• You can provide standing instruction to your bank to automaticlly deduct your credit card
payments from your account
• Deduction of tax at source is not applicable on interest earned
• The Reserve Bank of India mandates insurance of your savings account up to an amount
Rs 100000
You need to maintain as low as a Rs 5000 balance in a quarter or for 90 days i.e. average
quarterly balance in the ICICI Bank Savings Account
Savings Bank Account Interest rate: - 3.50%
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FEATURES OF ICICI BANK SAVINGS ACCOUNT:
Debit-cum-ATM card
Auto Invest Account
Internet Banking
Phone Banking
Anywhere Banking (withdraw OR deposit up to Rs 50000 from any branch of ICICI
BANK )
Standing instructions
Nomination facility
8 TO 8 Banking facility
Quantum optima (value added savings account )
Free quaterly statements
Bill payment facility
Attractive interest rates
Doorstep service
From ICICI bank you can withdraw money from non-based branch as follows:-
SOURCE AMOUNT
ATM 25000
58
SELF CHEQUE 50000
3rd PARTY CHEQUE 15000
PURCHASING 25000
TOTAL 115000
CHARGES:
Not maintaing average quaterly balance Rs 250
Cheque bounces Rs 200
Terms & Conditions for Establishing Relationship and Operating Accounts:
1 . Establishing a Relationship
1.1 Applicant desiring to open a Relationship needs to have a Relationship form signed by the
guardian. The guardian needs to declare therein that he/she has agreed to abide by the rules
which are in force from time to time.
1.2 Introduction is a pre-requisite for establishing a Relationship. The Bank may at its
discretion consider valid an introduction by an existing relationship holder. Alternatively, a
proof of identity for the guardian has to be furnished as under:
Proof of Identity (attach copies -provide original for verification)
Passport or
Letter from existing bank or
PAN (Along with self cheque drawn on existing Bank)
OR
59
Provide at least one each from List A & List B along with guardian’s self cheque drawn
on existing Bank
List A (Proof of Name)
Ration Card
Employee ID Card
Driving License
Salary Slip
Voter’s ID Card
Income/wealth tax assessment orders
List B (Proof of Current Address)
Electricity bill (Latest)
Telephone bill (Latest)
Copy of LIC Policy or latest premium receipt.
NSC (Copy)
Any latest Credit Card Statement
Letter from employer giving current residential address
2. Operating Accounts
Relationship can be opened in the names of
2.1 A minor under guardianship.
2.2 The Bank will be sending through courier or post from time to time to the mailing address
furnished by the applicant, statements of account, balance confirmation certificate, cheque
books, various PIN mailers delivery of the above items arising out of non-intimation of change
in mailing address.and such other items. Hence, it is incumbent upon the applicant(s) to
intimate change in mailing address, if any, immediately without any loss of time. The bank will
not be responsible for any loss, damage or consequences for wrong
2.4 A minimum deposit is prescribed for opening any account under a relationship. A minimum
average balance during a quarter is also required to be maintained in savings accounts.
60
Failure to maintain the prescribed average minimum balance will attract service charges of Rs
50 per month.
Collection facility
Cheques, drafts, bills, dividend / interest warrants and other instruments issued in favour of
customers are accepted for collection on account holders’ behalf. Collection of outstation
instruments entails collection charges.The Bank has the authority to debit the accounts to
recover any amount credited erroneously. Local cheques, etc., may be tendered for collection
sufficiently early in the day as required vis-a-vis the local clearing house timings.
Closure of Account
thereof. The Bank reserves the right to close Relationship or account(s), which according to
the Bank, is/are not conducted satisfactorily, after due notice to the customers without
assigning any reasons
Saving Account Rules
1.1 Natural guardian (father or widowed mother or Court appointed Guardian) can open a
Savings account on behalf of a minor with moneys belonging to the natural guardian. In special
cases the Bank reserves the right to open Savings Bank account on behalf of a minor by the
mother.
1.2 Savings account cannot be opened for business purposes.
1.3 Number of withdrawals in Savings account is restricted to 150 per annum.
Payment of Interest
3.1 Interest is paid on the minimum credit balance maintained between the 10th day and last
day of each calendar month in Savings accounts at the rate in force in accordance with RBI
directives. Interest so calculated is rounded off to the nearest rupee, ignoring fractions of a
rupee. Interest is paid every half year in September and March.
61
3.2 No interest is currently payable on the balance maintained in a current account in
acceptance with RBI directives.
PRIVATE BANKING
Comprehensive range of products and services
Savings Account, Fixed Deposits, Recurring Deposits, Quantum Optima, Current
Accounts,
Resident Foreign Currency (Domestic) Accounts etc.
Asset Products- Home Loans, Car & Personal Loans, Loan Against Securities etc.
Investments- Government of India Bonds, Mutual Funds, Capital Gain Bond etc.
Insurance
Web Trade and Demat Accounts
Gold Coins & Bureau de Change
International Debit and Credit cards
Exclusivity and Convenience
Dedicated Officer
Separate interaction area in the branch
Anywhere Banking facility
Exclusive Phone Banking service
Competitive Pricing
Reduced rates for products and services
Several Complimentary Offers
Value-linked benefits
62
Recent Developments
Wealthy Clients Receive Concessions - In a measure to grant relief to high-net-worth
customers whose investments have taken a hit, some financial services companies have lifted
restrictions on accounts dipping below the required minimum. Both Charles Schwab and
Vanguard have suspended deadlines for account holders to restore funds to levels needed to
qualify for reduced fees or other preferential treatment, including discounted or free financial
advice. By accommodating clients through flexible policies, firms can strengthen customer
relationships that could result in client referrals and continued business over the long term.
Private Equity Suffers Losses - Private equity firms reported declines in asset value ranging
from 15 to 50 percent for fourth quarter 2008, which will hurt the financial performance of
organizations that invested in private equity. Foundations and endowments, key clients of
financial planners, put large sums of money into private equity investments over the past
decade for sizable returns, according to the Wall Street Journal. Additional write-downs on
many private equity investments are likely.
Increased Oversight of Financial Advice Firms - The US Securities and Exchange
Commission (SEC) may require that investment advisory firms use third parties to maintain
client assets. The third party, or "independent custodian," would replace the current
requirement of a "qualified custodian," according the National Association of Personal
Financial Advisors, an industry group. Implementing the requirement could improve investor
confidence in investment advisors, which has fallen in the wake of the highly publicized
Bernard Madoff fraud scandal.
Competitive Landscape
Demand is driven by consumer income and wealth and demographics. The profitability of individual
firms depends largely on effective marketing. Large companies have some advantages in providing
expertise in a wider range of investment options, and may charge lower fees. Small companies can
compete successfully by providing better service and advice. In small and large firms, annual average
revenue per employee is about $200,000.
63
PRODUCT SELECT PREMIUMWEALTH
ADVISORY
Banking Products
Eligibility CriteriaRs. 5 Lacs Individual
Banking Relationship
Rs. 25 Lacs Individual
Banking Relationship
Rs. 50 Lacs Family
AUA Relationship
Minimum Balance
RequirementZero Balance Zero Balance Zero Balance
Private Banking
Kit
At par facility Available Available Available
Personalised Pay-in
SlipsAvailable Available Available
Mobile banking Free Free Free
Debit Cards Free Photo Signature Card Free Photo Signature Card Free Photo
Signature Card
Transaction Limits
Currently Rs.25,000 (to be
increased) for both cash
withdrawal and POS
Currently Rs.25,000 (to be
increased) for both cash
withdrawal and POS
Currently
Rs.25,000 (to be
increased) for both
cash withdrawal
and POS
Card Re-issue
chargesRs.200 per Issue Free of Charge Free of Charge
Dedicated
ResourcesRelationship Manager Wealth Advisor
Service Officer at Branches Service Officer at Branches Service Officer at
64
Regional Office /
Branches
Call Centre FacilityExclusive Private Banking
Call Centre
Exclusive Private Banking
Call Centre
Exclusive Private
Banking Call
Centre
(To be launched
soon)Mobile identification Mobile identification
Mobile
identification
Priority Queue Priority Queue Priority Queue
Housing Loans Competitive Rates Competitive Rates Competitive Rates
Fee @ 0.50% or Rs. 7,500
whichever is less
Fee @ 0.50% or Rs. 7,500
whichever is less
Fee @ 0.25% or
Rs.5,000
whichever is less
Credit Cards
Roll Over Balance Roll Over @ 2.75% Roll Over @ 2.75% Roll Over @ 2.00%
Card Fees
Free for 1st Year. Card Fee
waived for Subsequent
Years if Card Annual Spend
more than Rs 60,000
Free for 1st Year. Card Fee
waived for Subsequent Years
if Card Annual Spend more
than Rs 60,000
Free
Type of Card and
Limit
HPCL ICICI Bank Solid Gold
Card with Pre Approved
Limit of Rs. 1.5 Lacs
HPCL ICICI Bank Solid Gold
Card with Pre Approved Limit
of Rs. 3.00 lacs
ICICI Bank Solid
Gold Card with Pre
- Approved limit of
Rs. 3.00 lacs
Limit enhancement
based on
documentation
Limit can be enhanced to Rs
2.5 lacs
Limit can be enhanced to Rs
5 lacs
Limit can be
enhanced to Rs 10
Lacs
65
Demat and Web
Trade
Demat Annual Fee Rs. 300 No annual fee No annual fee
SALARY ACCOUNT :
66
ICICI Bank Salary Account is a benefit-rich payroll account for Employers and Employees. As
an organization, you can opt for our Salary Accounts to enable easy disbursements of salaries
and enjoy numerous other benefits too.
With ICICI Bank Salary Accounts your employees will enjoy the convenience of :
Having the largest network of ATMs at their command,
Free 24 hour Phone Banking,
Free Internet Banking.
All you would require to do is to send ICICI Bank an advice (in form of a cheque /debit
instruction, ecs, etc) for the total salary amount along with the salary details of the designated
employees in a soft and hard copy format and we will credit the respective employees'
accounts as per your statement of advice.
ICICI Bank Salary Accounts benefits you in more than one ways:-
Reduces your paperwork.
Saves remittance costs.
Employees receive instant credit of salaries.
More convenient than ECS.
Besides all of the above, employees will automatically become ICICI Bank account holders
with special benefits and privileges of 8-8 banking, Investment advisory and much more...ICICI
Bank also has a special offering: Defense Banking Services designed exclusively for the
armed forces.
WOMEN’S ACCOUNT:
Features:
67
The features of the account have been specially designed keeping in mind a woman's financial
requirements. These include
A) Recurring Deposits
B) Financial planning of children
C) Family Shield Insurance
In addition to these, all features of the existing bank account are available with this account as
well such as
Free international debit card
Internet Banking
Phone Banking
ATM's
Recurring deposit
A small amount of money saved every month can grow to a large amount over a period
of time
No Tax deducted at source
Can be used for your future expenses like your child's education, marriage, festivals, or
just to buy that gold necklace you always wanted, by keeping aside a small fixed
amount every month
Family shield insurance
Ensures the security of your family through a personal accident insurance policy
For an yearly premium amount of Rs.60/-, your child/family can be insured for an
amount of Rs. 2 lac (in case of surface accidents) or Rs.4 lac (in case of air accidents).
Eligibility
Resident Indian Female.
68
Joint accounts with a woman as the first holder are also eligible for the account
DOCUMENTATION
Tier I - An introduction by an existing relationship holder is a pre-requisite for establishing a
relationship.
OR
Tier II - Proof of
identity:
Passport OrLetter
from existing
bank OrPAN
(along with self
cheque drawn on
existing bank)
OR
Tier III - At least
one each from List
A and List B
(along with self
cheque drawn on
existing bank)
List A (proof of name) List B (proof of address)
Ration Card Electricity bill (the latest)
Employee ID card Telephone bill (the latest)
Driving Licence Copy of LIC policy or latest premium
receipt
Salary Slip NSC (a copy)
Voter's ID Card Latest credit card statement
Income / wealth tax
assessment orders
Letter from employer giving current
residential address
69
FIXED DEPOSITS:
70
ICICI Fixed Deposit allows you just that - deposits can be opened for periods ranging from 15 days to
10 years.
Other features include:
Choice of two investment plans:
Traditional
Interest payable monthly, quarterly or half-yearly as per your convenience
Maturity period ranges from 15 days to 10 years.
Reinvestment
Interest is compounded quarterly and reinvested with principal amount
Maturity period ranges from 6 months to 7 years
Minimum Balance
You can avail of ICICI Bank Fixed Deposits for a minimum deposit of Rs 10,000 and thereafter
in multiples of just Rs 1,000.
Nomination
Nomination facility is available for relationships in the names of individuals. Unless otherwise
specifically, given in writing by depositors, nomination in deposit accounts will be at Customer
ID level.
Depositor(s) however has/have the right to specify different nominations at account level by
completing appropriate forms.
Further, the applicant(s) is/are at liberty to change the nominee, through declaration in the
appropriate form to revise the nomination during the currency of the relationship accounts with
the Bank.
71
Easy Fixed Deposit Features
Easy Fixed Deposit is an ICICI Bank fixed deposit scheme having benefits of Debit -cum- ATM
card (''the Card'')The depositors shall be provided with a Debit Card for transacting in fixed
deposit. Transactions which are allowed are
Part withdrawal of fixed deposit
Full withdrawal of fixed deposit
Generation of mini statement
The Card will be issued in the name of primary depositor
No separate card will be issued to joint applicant/s
Deposits can be made in two modes
Easy Withdrawal
Easy Loan
A customer has to opt for one of these at the time of opening the account
Tenure of deposits varies between 1 year and 10 years
All deposits under this Deposit Scheme will be cumulative (reinvestment) in nature
Minimum deposit amount under the Deposit Scheme is Rs.45,000 and additionally
deposits can be made in multiples of Rs.5,000
Nomination details are as in the case of normal Fixed Deposits
Easy withdrawal
Under this option fixed deposit shall be linked to the debit card directly
The debit card can be used to withdraw money from the ATM, by breaking the FD, as
and when required.
If the deposits are prematurely withdrawn, the interest rate for the period for which
deposit was with the ICICI Bank prevailing on date of deposit made, shall be payable
Easy Loan
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The depositors shall be provided with an overdraft facility against the Easy FD and can
draw up to 75% of the Easy FD value
The interest rate on the overdraft will be 2% higher than the rate on the FD
The depositor shall be required to execute all loan facility documentation as specified by
ICICI Bank for these purposes
Cheque book will be issued to deposit holder
Benefits
A wide range of tenures, ranging from 15 days to 10 years, to suit your investment plan.
Partial withdrawal is permitted in units of Rs 1,000. The balance amount earns the
original rate of interest.
Safe custody of your fixed deposit receipts.
Auto renewal is provided.
Loan facility is available to the extent of 85% of principal and accrued interest.
Choice of two investment plans: Traditional or Reinvestment.
Fixed Deposit Eligibility
Resident Indian.You can open a savings account with as little as Rs. 5,000. This service
is available at all our branches across the country.
An introduction is a pre-requisite for establishing a relationship.
Easy Fixed Deposit Eligibility
The entities eligible for the Deposit scheme are resident Indians and a deposit can be opened
in the names of an individual -
a. In his or her individual capacity, or
b. In individual capacity on joint basis, or
c. In individual capacity on anyone or survivor basis, or
d. On behalf of a minor as father/mother/legal guardian
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YOUNG STARS ACCOUNT
Young Stars, cute companions will guide CHILDRENS through the world of banking -through
checking the account balance, fun zones and special pages on the internet. It makes banking
a pleasure and of course teaches your child at to manage their personal finances. Once you
are done with your 'banking', you can access your child's account with all the fun links to
special zones designed to suit your child's area of interests and also impart knowledge on the
current events of the world. You can even open a recurring deposit in your child's name.
Features:
Young Stars is a banking service for children, aged 1-18 years, brought to you by ICICI Bank
to help the parents meet the present and future aspirations that they hold for their child. It
offers various savings and investment options to the parent along with teaching the child to
manage his/her personal finance in a more responsible and independent manner.
SPECIAL OFFER:
1. Option of a Savings Bank account, Fixed Deposit account or Recurring Deposit account.
2. Minimum balance at Rs. 500/- per quarter for Savings Bank.
3. A special Recurring Deposit account with additional features as below:
I. The parent would put forward the desired amount to be earned at the end of the tenure
II.
Based on the prevailing rate of interest, the bank staff would then back calculate the
installments to be deposited now till maturity.
Other RD type savings options that are possible for the parent include investing sums
periodically and then receiving sums back from the bank periodically. The various RD
options would be available through the "Annuity to Annuity" product already developed by
74
the bank.
4. Free personalized chequebook.
5. Free Domestic Debit Card* for the child above the age of 10 years with features as below:
a Daily withdrawals limits of Rs. 1,000/-
b Daily spend limits of Rs. 1,000/-
c Special privileges across all alliance partners' outlets.
6. Facility to invest in GOI Relief Bonds and Mutual Funds.
7. Free Internet banking.
a Separate user ids and passwords for both parents and children
b Access to special zones and links to related websites for making internet banking a
memorable experience.
8. Facility to transfer funds from parent account to kid account to enable parents to inculcate
savings habit amongst children.
9. Facility of setting up a sweep account from the Young Stars accounts to the RD to enable the
parents to let their child earn more.
10 Alliances with various partners to meet the child's needs
3.RESEARCH METHODOLOGY
Defining the research objective
75
↓
Review the literature
↓
Research design
↓
Sample design
↓
Data collection
↓
Analysis of data
↓
Interpretation of data
3.1 Title of the study
76
Consumer satisfaction regarding saving Account in ICICI Bank
3.2 Project duration
Time – 1 month.
Element - people from middle class, upper middle class and high-income group people of Sri
ganganagar.
3.3 Objective of the study
The main aim of undertaking this study is to accomplish the following objective:
To understand the organization culture.
A study of the consumer behavior regarding bank policies.
To observe and analyze the marketing policies of ICICI BANK with respect to its
competitors.
To promote different products of ICICI BANK life Insurance ltd
Conducting a market survey and understanding the customer perception about New
polices offered by ICICI BANK.
Analyzing various promotional tools used for marketing of New Fund Offers of ICICI
BANK in Jaipur city.
Analyzing the market survey and thereby finding out the investment pattern of the
customer.
Proper understanding and evaluation of New polices Offer of ICICI BANK as an
investment option.
Proper understanding and analysis of the perspective investor about this financial
product.
3.4 Type of Research
Descriptive research
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It is the most commonly used and the basic reason for carrying out descriptive research is to
identify the cause of something that is happening. For instance, this research could be used in
order to find out what age group is buying a particular brand of cola, whether a company’s
market share differs between geographical regions or to discover how many competitors a
company has in their marketplace. However, if the research is to return useful results, whoever
is conducting the research must comply with strict research requirements in order to obtain the
most accurate figures/results possible.
The process of conducting a descriptive research study would include the following:
1. State the hypotheses or questions you hope to answer with your descriptive
study.
2. Define subjects.
3. Develop the instrumentation for your study. Usually this involves selecting or
more often developing a questionnaire.
4. Validate the questionnaire.
5. Prepare a cover letter
6. Pretest the questionnaire
7. Plan how you will deal with non-respondents and with items not completed.
8. Description and analysis of results.
3.5 Sample Size and method of selecting sample
78
Sampling is often used when conducting a census is impossible or unreasonable. When using
a census, the researcher is interested in collecting primary data about or from every member
of a defined target population. Intuitively, it is easy to see that sampling is less time-consuming
and costly than conducting a census. For example, let’s say the management of US Airways
wants to find out what business travelers liked and disliked about flying US Airways. Gathering
data from about 2,000 experienced US Airways business travelers would be much less
expensive and time-consuming than surveying about 6.5 million travelers. As discussed in
earlier chapters, no matter what type of offline or online research design is used to collect
secondary or primary data, the time and money factors of research projects are usually critical
to decision makers. For researchers, shorter projects are more likely to fit the decision maker’s
time frames.
The concept of sampling also plays an important role in the process of identifying, developing,
and understanding new marketing constructs (or objects) that need to be investigated by the
researcher. Consider a researcher who is helping the owner of a local doctor’s walking clinic to
understand the concept of service quality in medical delivery practices. The researcher must
identify the various dimensions that might make up service quality. By using different
exploratory (or qualitative) research methods, she or he can establish a manageable set of
dimensions and attributes representative of the whole concept of service quality.
Another area in which sampling plays a significant role is the process of developing the scale
measurements used to actually collect primary data about objects or people. When creating a
scale measurement, the researcher must have some idea of who the intended respondents
are, so that the appropriate words and phrases are incorporated into the measurement design.
In addition, she or he must be able to determine the scale’s reliability and validity. These
design and test activities require the researcher to administer the scale measurement to a
representative subset of the proposed target population.
Samples also play an important indirect role in the process of designing questionnaires.
Depending on the redefined information problem and the selected target population, sampling
decisions will affect the decisions regarding the type of research design (e.g., exploratory,
descriptive, causal, offline, online), the survey instrument (e.g., person-administered,
computer-assisted, or self-administered), and the actual questionnaire’s structural design
attributes. For example, by having some general idea of the target population and the key
79
characteristics that will be used to draw the necessary sample of respondents, researchers
can customize the questionnaire with the appropriate phrasing and words to ensure that the
questionnaire is of interest to the prospective respondents and results in high-quality data.
In cases where the process of measurement in a study results in the destruction of the
elements being studied, sampling may be the only alternative. For example, if every Ruffles
potato chip that came off Frito-Lay’s production line were tested for salt, oil, color, and so on,
none would be left to package and sell. Although this reason for sampling is usually thought of
in terms of quality control, it can be applied to many business and marketing problem
situations that require primary research data in the testing of new products or ideas. As these
examples illustrate, there are different reasons for the inclusion of sampling procedures in
information research. The main objective is to allow researchers to make inductive and
predictive judgments or decisions about the total target population on the basis of limited
information or in the absence of perfect knowledge. The concept of sampling involves two
basic issues: (1) making the right decisions in the selection of items
(e.g., people, products, or services), and (2) feeling confident that the data generated by the
sample can be transformed into accurate information about the overall target population.
Finally, your understanding of the material covered in this chapter will set the tone for better
understanding the topics presented in the remainder of the text: construct development, scale
measurement practices, questionnaire designs, coding and fieldwork, and data analysis
techniques. We begin this chapter providing the foundation for understanding sampling by
introducing you to the basics of sampling theory. Next, we will discuss the critical issues
underlying how to determine appropriate sample sizes for different marketing research
projects. Then you will be introduced to the different types of probability and
Non probability sampling designs available to researchers. Using your understanding of topics
discussed, we conclude the chapter by discussing the steps, activities, and decisions that are
involved in developing a sampling plan.
Basic Sampling Terminology
Population
A population is an identifiable total group or aggregation of elements (e.g., people, products,
organizations, physical entities) that are of interest to the researcher and pertinent to the
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specified information problem. For example, let’s say that the Mazda Motor Corporation hired
J. D. Power and Associates to measure “customer satisfaction among automobile owners.”
This wording would suggest that the population of interest would be all people who own
automobiles. It is very unlikely, however, that J. D. Power and Associates could draw a sample
that would be truly representative of such a broad, heterogeneous population—any data
collected would probably not allow for generalizations about customer satisfaction that would
be of use to Mazda (or that would be accurate or meaningful at all). Such specification or lack
of it) is unfortunately very common in marketing research. Most businesses that require the
collection of raw data are not really concerned with total populations, but rather with a
prescribed segment of the total. For purposes of discussion and practicality of understanding
the important sampling issues in research, we will use a modified version of population:
Defined target population. A defined target population consists of the complete group of elements
(people or objects) that are specifically identified for investigation according to the objectives of the
research project. A precise definition of the target population is essential and is usually done in terms of
elements, sampling units, and time frames.
Element
An element is a person or object from which data and information are sought. Often in research, the
element is a particular product or group of individuals. Elements must be unique, be countable, and,
when added together, make up the whole of the target population.
You can view elements collectively as the target population frame for which some type of sample will be
drawn. Target population elements might include a particular consumer product (e.g., Mazda
automobiles); specific groups of people (e.g., females aged 18 to 34, or households with checking
accounts); or specific organizations (e.g., Fortune 500 companies). When the initial definition of the
target population mis defines the elements, it creates a bias referred to as target population frame error.
Sampling Units
Sampling units are the target population elements available for selection during the sampling process.
In a simple, single-stage sample, the sampling units and the population elements may be the same.
However, many studies involve complex problems that require the use of a multistage sampling
81
process. Using the Mazda example as a case in point, owners of Mazda cars might be the population
elements of interest, but J. D. Power and Associates might only be concerned with the owners who
have purchased new Mazdas rather than used ones. Therefore, the defined target population would be
redefined. Refining the set of population elements with a second factor creates population segments
from which to draw a representative sample.
Target population elements might also be identified using a specified time frame (e.g., the year 2002,
the month of August 2002, or the period from April 15 to April 30, 2002).
For instance, the Mazda Corporation might specify its interest in understanding customer satisfaction
among only Mazda automobile owners who have purchased new cars in 2002.
Consequently, J. D. Power and Associates would have to further refine its definition of the target
population, thus reducing the eligible sampling units.
Sampling Frame
After defining the target population, the researcher must assemble a list of all eligible sampling units,
referred to as a sampling frame. Some common sources of sampling frames are lists of registered
voters and customer lists from magazine publishers, credit card companies, or even maps. Today,
there are also specialized commercial companies (e.g., Survey
82
Sampling, Inc.; American Business Lists, Inc.; Scientific Telephone Samples) that are in the business
of developing databases that contain names, addresses, and telephone numbers of
potential population elements. These companies can also generate and sell needed
sampling frames. Although the costs of obtaining such sampling frame mailing lists will
vary, a list can normally be purchased for between $50 and $200 per 1,000 names
Probability and Non Probability Sampling
How to obtain a sample is a very important issue when designing a study that uses interviewing or
surveys for raw data collection. Overall, there are two basic sampling designs: probability and non
probability
In probability sampling, each sampling unit in the defined target population has a known, nonzero
probability of being selected for the sample. The actual probability of selection for each sampling unit
may or may not be equal depending on the type of probability sampling design used. Specific rules for
selecting members from the operational population for inclusion in the sample are set forth at the
beginning of a study and are made to ensure unbiased selection of the sampling units and proper
sample representation of the defined target population.
Probability sampling allows the researcher to judge the reliability and validity of raw data collected by
calculating the probability to which the findings based on the sample would differ from the defined
target population.As discussed earlier, this observed difference can be partially attributed to the
existence of sampling error. The results obtained by using probability sampling designs can be
generalized to the target population within a specified margin of error through the use of statistical
methods. In non probability sampling, the probability of selection of each sampling unit is not known.
Therefore, potential sampling error cannot be accurately known either. The selection of sampling units
is based on some type of intuitive judgment, desire, or knowledge of the researcher. The degree to
which the sample may or may not be representative of the defined target population depends on the
sampling approach and how well the researcher executes and controls the selection activities. Although
there is always a temptation to generalize non probability sample data results to the defined target
population, in reality those results are limited to just those people who provided the raw data in the
survey. A researcher should not even attempt to generalize the survey’s data results or make
inferences about those people in a non probability sample who for some reason demonstrated an
unwillingness to participate.
83
Types of Probability Sampling Designs
Simple Random Sampling
Simple random sampling (SRS) is a probability sampling procedure that ensures that every sampling
unit making up the defined target population has a known, equal, nonzero chance of being selected.
For example, let’s say an instructor decided to draw a sample of
10 students (n = 10) from among all the students in a marketing research class that consisted of 30
students (N = 30). The instructor could write each student’s name on a separate, identical piece of
paper and place all of the names in a jar. Each student would have an equal, known probability of
selection for a sample of a given size that could be expressed by the following formula:
Probability of selection = Size of sample/
Size of population
Types of Probability and Non Probability Sampling Method
Probability Sampling Methods
Simple Random Sampling (SRS)
Researchers use a table of random numbers, random digit dialing, or some other random
selection procedure that ensures that each sampling unit making up the defined target
population has a known, equal, nonzero chance of being selected into the sample.
Systematic Random Sampling (SYMRS)
Using some form of an ordered list of the members of the defined target population,
researchers select a random starting point for the first sampled member. After determining
what the constant “skip interval” value needs to be to ensure representativeness, the skip
interval is applied to select every nth member from the random starting point until the
necessary sample is drawn. This sampling method is used such that the entire list is covered,
no matter of the starting point. This method accomplishes the same end goal of the
SRS method, and is more efficient.
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Stratified Random Sampling (STRS)
When the defined target population is believed to have a non normal (or skewed) distribution
for one or more of its distinguishing characteristics (e.g., age, income, and product ownership),
researchers must identify subpopulations, referred to as strata. After the strata are segmented,
a simple random sample is drawn for each stratum. Proportional and disproportional weighting
factors may be applied to estimate overall population values.
Cluster Sampling
This method requires that the defined target population be segmented into geographic areas,
each of which is considered to be very similar to the others. Researchers randomly select a
few areas, then conduct a census of the elements in each area. As an alternative, researchers
can select more areas and take samples from each of those areas. This sampling method is
appealing when researchers can easily identify the highly similar areas.
Non Probability Sampling Methods
Convenience Sampling
A method in which samples are drawn at the convenience of the researcher or interviewer,
often as the study is being conducted. The assumptions underlying this method are that the
defined target population is homogeneous and the individuals interviewed are similar to the
overall target population with regard to the characteristics being studied.
Judgment Sampling
Participants are selected according to the researcher’s or some other experienced individual’s
belief that they will meet the requirements of the study. The underlying assumption is the
researcher’s subjective belief that the opinions of a group of perceived experts on the topic of
interest are representative of the entire defined target population.
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Quota Sampling
This method involves the selection of prospective participants according to pre specified
quotas regarding demographic characteristics (e.g., age, race, sex,income), specific attitudes
(e.g., satisfied/dissatisfied,
liking/disliking, great/marginal/no quality), or specific behaviors (e.g., regular/occasional/rare
shopper, product user/nonuser, heavy user/light user). The underlying purpose of quota
sampling is to provide an assurance that pre specified subgroups of the defined target
population are represented on pertinent sampling factors that are determined by the
researcher or client.
Snowball Sampling
A method that involves the practice of subjectively identifying and qualifying a set of initial
prospective respondents who can, in turn, help the researcher identify additional people to be
included in the study.
After interviewing one person, the interviewer would solicit that person’s help to identify
other people with similar characteristics, opinions, or feelings. Members of the defined
target population who might not hold similar beliefs or feelings to those of the
respondents are less likely to be included in this type of sample
Questionnaire
One of the great weaknesses of questionnaire design today is that many researchers still do
not understand the theory behind questionnaire development. Many researchers believe that
designing questionnaires is an art rather than a science, where art relates to the researcher’s
creative use of words in asking the right questions and developing the related scale points.
86
While there is some level of creativity involved in designing a questionnaire, the process itself
should be a scientific one that integrates established rules of logic, objectivity, discriminatory
powers, and systematic procedures. Everyone understands that words go into questions and
that questions go into questionnaires, but not everyone understands that writing questions
does not give you a questionnaire.
Four Theoretical Components of a Questionnaire
Theoretically, a questionnaire consists of several components—words, questions, formats, and
hypotheses—that are integrated into a recognizable, hierarchical layer system.
Words
The most obvious component is words. The researcher must carefully consider which words to
use in creating the questions and scales for collecting raw data from respondents.
Gathering and Collecting Accurate Data
A few examples of wording problems include ambiguity, abstraction, and connotation. The
words selected by the researcher can definitely influence a respondent’s answer to a given
question. The following examples are used to illustrate this point:
1. Do you think anything could be done to make it more convenient for people to conduct their
financial transactions at Citicorp Bank?
2. Do you think anything should be done to make it more convenient for people to conduct their
financial transactions at Citicorp Bank?
3. Do you think anything might be done to make it more convenient for people to conduct their
financial transactions at Citicorp Bank?
The different answers each of these questions would generate show how word phrasing
variations can become significant in questionnaire designs. Slight changes in wording can
introduce different concepts or emotional levels into the questionnaire.
Questions/Setups
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The next component is the question/setup used in a particular scale measurement to collect
raw data from the respondent. Question reliability, question validity, and question bias should
have already been addressed during the scale measurement design activities and are
therefore not part of questionnaire design itself. Two important issues relating to question
phrasing that have a direct impact on survey designs are (1) the type of question format
(unstructured or structured) and (2) the quality of the question (good or bad).3
Unstructured questions are open-ended questions formatted to allow respondents to reply in
their own words. There is no predetermined list of responses available to aid or limit the
respondents’ answers. This type of question requires more thinking and effort on the part of
respondents. In most cases, an interviewer is required for purposes of asking follow-up probing
questions. If administered correctly, unstructured questions can provide the researcher with a
rich array of information. The actual format of open-ended questions might vary depending on
the data collection method (e.g., personal interview, telephone interview, or self-administered
survey). Structured questions are closed-ended questions that require the respondent to
choose from a predetermined set of responses or scale points. This question format reduces
the amount of thinking and effort required by respondents. In general, structured questions are
more popular than unstructured ones in offline and online self-administered questionnaires.
Interviewer bias is eliminated because either (1) the interviewer simply checks a box or line,
circles a category, hits a key on a keyboard, points and clicks a computer mouse, or records a
number or (2) the respondents themselves check a box or line, circle a category, hit a key on a
keyboard, point and click a computer mouse, or record a number that best represents their
response to the question.In many ways, structured formats give the researcher greater
opportunities to control the thinking that respondents must do in order to answer a question.
Bad questions are any questions that prevent or distort the fundamental communication
between the researcher and the respondent. Researcher may think she or he has written an
excellent question because it accurately conveys her or his point of view or interest to the
respondent, but if the respondent cannot answer it in a meaningful way, it is a bad question.
Some examples of bad questions are those that are
1. Incomprehensible to the respondent because the wording, the concept, or both cannot be
understood. An example would be: “What is your attitude about the linkage between the 2002
88
war on the terrorists of al-Quaida in Afghanistan and the Democrats decrying of sexual
McCarthyism toward improving the environment in Arizona?”
2. Unanswerable either because the respondent does not have access to the information
needed or because none of the answer choices apply to the respondent. An example would
be: “What was your parents’ exact annual income two years ago?”
3. Leading (or loaded) in that the respondent is forced or directed into a response that she or
he would not ordinarily give if all possible response categories or concepts were provided, or if
all the facts of the situation were provided. An example of this would be: “Do you believe that
Democrats who loved William Jefferson Clinton agreed he did a good job as president of the
United States?”
4. Double-barreled in that they ask the respondent to address more than one issue at a time.
An example would be: “To what extent do you agree or disagree that Monica
Lewinsky and Representative Henry Hyde, R-Ill., were responsible for the impeachment vote
against President Clinton?”
DATA COLLECTION APPROACH
PRIMARY DATA
SECONDARY APPROACH
89
DATA THROUGH PRIMARY SOURCES
The inquiry was done of the respondants through questionnaire in which the same set of
questions were asked to the very respondents falling within our sample. The advantage is that
it is simple to administer easy to tabulate and analyse
DATA THROUGH SECONDARY SOURCES
Circulars etc
The search was done on internet and related magazines, company”s websites to extract
relevant information. The other nessesory information regarding ICICI bank products and other
bank products and offerings were obtained through printed sources such as Handouts,
Pamphlets, Advertisements
SAMPLE SIZE
Type of sampling simple random sampling
Sample size 100
No. of questionnaire 100
Our product guide,keeping in view the time consideration, determined the size of sample of the
sample arbitrarily
3.7 Limitation of study
90
Although I gave my best efforts to this project but even after that I had some problems
Time
It was the main constraints for my project .i have allotted only few weeks to
complete my project which was quite challenging.
Cost
I was helped by no one in this project, so being a student I tried to cover as many
places as I could at my survey time
Sample size
Since I chose simple random sampling so I had to ask one hundred fifty people to get
100 responses
RESEARCH DESIGN
For collecting primary data from large groups of people through the question answer approach
ir protocol process , survey method was used to engage a person to gather substantial amount
of information from enough members of the target population so that the inductive logic and
probabilistic inferences rather than deductive reasoning can be incorporated in understanding
the relationship between desired market factors and phenomena under investigation .
SEGMENTATION
In order to execute the summer training project , jaipur was segmented on the basis
91
MAIN MARKET AREA
POSH RESIDETIAL AREA
SEGMENTATION OF MARKET FOR SAVINGS ACCOUNT
Geographical basis
Demographical
TARGET RESPONDENTS
FOR questionnaire no.1 (FOR BANKS)
Major Private Sector Banks like HDFC, HSBC, IDBI and selected nationalized banks like PNB,
SBI, BANK OF BARODA, and BANK OF INDIA.
FOR questionnaire no.2 (for individual respondents)
Government executive and high profile businessman or professional and people from high
profile.
SAMPLING
To serve the objective and study the scope banks . .we have designed two set of
questionnaires
92
1 the first questionnaire was developed to study the product offering and facilities of
different banks so as to check the level of competition in the market for multinational
banks nationalized banks
NATIONALIZED BANKS: consisting of all the banks
formed in accordance with 1969
Act
PRIVATE BANKS : consisting of ICICI , HDFC ,
UTI
MULTINATINATIONAL: Banks compromising of
standard charter bank,HSBC
For the comparision of various banks we have taken a sample size of 8 with non probability
sampling
2 The second quest was developed to check the level of satiafaction the people get from
their savings account to know the factors they consider important while selecting a
bank to open an account with. and what facilities they require from their bankers or
their grievances arising due to non fulfillment of their needs and what is their opinion
regarding different categories of banks
4. Facts and findings
Findings are presented in an appropriate form such as TABLES GRAPHS
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RESULTS OF SURVEY CONDUCTED ON CUSTOMER VIEW
CONVENIENCE OF LOCATION
11%
29%
6%
21%
33%
0% 5% 10% 15% 20% 25% 30% 35%
1
2
3
4
5
PR
IOR
ITY
OF
IM
PO
RT
AN
CE
% OF ACCOUNT HOLDERS
CUSTOMER RELATION
18%
5%
35%
32%
10%
0% 10% 20% 30% 40%
1
2
3
4
5
PR
IOR
ITY
OF
IM
PO
RT
AN
CE
% OF IMPORTANCE
94
ACCOUNTS MAINTAINED
28
14
8
0
5
10
15
20
25
30
savings current F.D
RE
SP
ON
DE
NT
PE
RC
EN
TA
GE
QUALITY OF SERVICES
5%
30%
65%
0% 10% 20% 30% 40% 50% 60% 70%
1
2
3
PR
IOR
ITY
OF
IM
PO
RT
AN
CE
% OF IMPORTANCE
95
BANK’S PROMOTIONAL ADVERTISING
12%
35%
4%
27%
22%
0% 10% 20% 30% 40%
1
2
3
4
5
PR
IOR
ITY
OF
IM
PO
RT
AN
CE
% OF IMPORTANCE
BANK’S REPUTATION
57%
23%
3%
10%
7%
0% 10% 20% 30% 40% 50% 60%
1
2
3
4
5
PR
IOR
ITY
OF
IM
PO
RT
AN
CE
% OF IMPORTANCE
96
5. Analysis and interpretation
Q.1 which sector of banking you prefer most? (A) Public (B) Private (C) Foreign
(a)52%custmor prefers public sector bank. These are easily available everywhere .
The main reason of high share of public banks
low service charges ,
government supported bank ,
minium balance require to transaction
Suitable to middle class customer
Stability
Trust of customer
97
(b)41%customer,most of them are of high profile , like private sector as icici hdfc axis because
thes banks provides
various quality of product
quick services
easily avaible in urban areas
even after private bank in jaipur doing reasonable buiseness because almost main private
banks are available in jaipur city therefore no much difference between pirvate and public
sector banks
(c)
7% people like foreign anks like hsbc
there isvery low share because foreign banks are noteasily available in aipur city
very few branches are in jaiour city mstly a class customers prefers freign banks most of
customers dose not believes inforeign banks
98
Q.2 Please specify your annual income?
(A) Less than 1 lakh
(B) 1 to 2 lakh
(C) 3 to 5 lakh
(D) More then 5 lakh
(a)
9% saving account holder have annual income less than one lakh thes customer are low
profile
daily wages person students
+
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Q.3 what features /attributes, while opening an account does you expect from a bank?
(A) Quick service
(B) Variety of products
(C) Less formalities of documents
(D) Working hour
(E) Proper information
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Q.4 In which of the following banks do you have your account?
(A) ICICI
(B) SBI bank
(C) HDFC
(D) AXIS
(E) Other……………
101
Q.5 who influenced you to open an account in bank?
(A) Bank employees
(B) Prospectus
(C) Advertisement
(D) Friend
(E) Others…………….
this question is asked to know about source which encouraged potential customers turn into
current customers
advertisement is the biggest medium to communicate inform and prompt people to go for
ICICI bank for bank accounts so bank need to communicate more on advertise part of
promotion.
With 26% of shares employees done well job.
The bank has a very good and effective prospect which helped people to know more about
bank policies and schemes regarding bank accounts.
Friends & relatives which already have a bank account in bank, are also a very effective
medium of mouth publicity.
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Q.6 which of the following attributes compelled you most while opening an account?
(A) ATM cum debit card
(B) Cheque book facility
(C) The internet banking
(D) Charging interest on saving account
(E) Other…………………………………
At the time of opening of a bank account a customer has a lot of things in his minds. With the
share of 38% ATM cum debit card facility is the thing which compelled most a customer.
Second place oqupies by cheques book facility.
Internet banking is one of the today’s most frequently used facilities.
What are the charged by bank on their facilities provided by bank? This question is also
discussed by customers at the tie of opening an account.
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Q.7 your remarks for bank?
(A) Excellent
(B) Good
(C) Average
(D) Poor
Why? ............................................................................
The bank has a very positive image in the mind of its customer with maximum shares(44%)
Bank is judged as average by the customer
31% of customer s thought bank as a good bank.
by its innovative scheme and quick services 17% customers preferred the bank as a excellent
bank while rest of customer ranked bank as a poor bank the reason behind so may be failure
of bank in understanding need of customers belong from niche market so bank need to have
customized product to full fill the demand
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Q.8 was the branch staff polite and courteous
(A) Yes
(B) No
This question is asked to measure internal service in the campus of bank. the answer of the
customer is like 50-50 that is mean something half of the customers don’t find very supportive
the internal environment of bank. Behavior of the men power in service organizations has a
very impotent role. service and performance of organization is measured by way of dealing
and handling the customer so the bank need to concentrate more on training of front line staff
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Q.9 How long did you wait in queue?
(A) 0-5 minutes
(B) 5-10 minutes
(C) More than 10 minutes
Generally in the bank it takes 5-10 minutes in queue to sort out routine transaction. 52% of the
customers spend their 5_10 minutes in bank. it is not very convenient for the customers so
bank need to make such an arrangement so that valuable time of customer can be saved. on
the special occasion like new offers & schemes customers have to spend their more than 10
minutes in the bank. when there is not too much rush in the banks then 27% of customers can
be saved their time by 0-5 minutes so there should be a solid strategy to handle the rush on
the peek hours.
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Q.10 you are satisfying with after open your saving account services?
(A) Yes
(B) No
After sale services are the essentials part of marketing it is strategy to hold current customer
for the future reference. the task of marketing doesn’t end just with sale of the product. so after
sale services provided a opportunity to organization to maintain their market share and trust of
customers ICICI bank supposed to has very good after sale services as 62% of respondent are
satisfied with after sale services.
Even after that 38% of the customers are not satisfied with the policy of bank to deal with the
after an opening accounts there may be some reason behind it Like as not receive proper
information regarding transactions and hidden charges so there 38% customers of bank not
properly satisfied .
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Q.11 Are you satisfied with the response given by the staff for your request?
(A) Yes
(B) No
On this front performance of bank is remarkable .as 73% respondent are fully satisfied with
providing information. the bank is a service organization whose business majorly depends on
information providing system. the marketing manager need to decide what kind of , when and
to whom information is to given. This is very typical question and most important decision in
service organization.
In the bank 27% of customers are still not getting the information there may be some
loopholes in the communication with the customers so bank has to select proper medium to
reach and communicate with customers.
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Q.12 which service is attracts you for open saving account?
Ans … there are lots of services which bank has to attract to potential customers the main
services are ATM cum debit card Cheque book facility The internet banking Charging interest
on saving account. At the time of opening of a bank account a customer has a lot of things in
his minds. With the share of 38% ATM cum debit card facility is the thing which compelled
most a customer.
Second place oqupies by cheques book facility.
Internet banking is one of the today’s most frequently used facilities.
Q.13 what is the change require in bank for saving accounts according to you?
Ans… the answer of this question varies person to person prices sensitive customers
suggest for low service charge while customer don’t have much time want vary quick services
Some suggestion are as follows –no hidden charges , no minimum balance require, less
formalities in documentation, supportive working environments .
Apart fro these suggestion some customers think no change require and every thing is perfect.
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6SWOT ANALYSIS.
ICICI BANK
STRENGTHS
All the branches are interconnected which give the unique facility of anywhere banking.
All operations of the bank are carried on with the help of computers thus transaction are
carried with greater efficiency.
ATM +Debit card facility.
Large number of ATMs(27 in Jaipur).
High number of executives which make the work of customers very convenient.
The withdrawal limit provided by the bank is 15000 per day through ATM & 50000
through cheque per day.
Maximum customer base in sri ganganagar as compared to any of the bank.
WEAKNESS
Less awareness among general masses about the different services provided by the
bank.
Wrong location of the ATMs machine.
People’s faith in private banks is still not very high.
Dissatisfaction among customers due to improper and lack of after sales services.
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Some or the other time the ATMs become out of order.
Exchange rates of demand draft are high
OPPORTUNITIES
People’s dissatisfaction towards nationalized banks in terms of services has turned to
be blessing for private banks.
Among the private players ICICI bank have the excellent brand image.
There lies a great scope in forex department which is unutilized to a greater extent can
yield much better results by which the bank can increase its volume.
Special services can be provided to women as the women’s role is becoming
prominent.
The trust of people is increasing on the banks rather then going for financial institution.
There is vast untapped opportunity which lies for every bank in the rural area.
THREATS
Reorganization of PSU’s. All the PSU’s have started to redefine their services to attract
customer’s attention.
A few foreign banks have been permitted to increase their number branches and its
entry has taken away some business of the existing banks.
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Stringent norms by RBI in any time in future can be a threat to private banks as their
activities can be adversely affected.
Bank of Punjab Ltd .
Opened its first branch at Chandigarh, in April 1995. In a short span of 8 years, the Bank
added many firsts to its credit:
The first bank to focus on retail banking.
The first bank in north India to install a state-of-the Art ATM payment gateway allowing
on line transactions. Till today, the only such gateway in North India.
The first bank to have introduced faxbanking and telebanking for its customers.
Leveraging the strength of technology, the First bank to offer extended banking hours to
its customers.
Realizing the importance of Human Resources, the First amongst peer banks to set up
a residential fully equipped training Institute.
The first bank to have transferred technology to the masses.
Vision :
To be a financial supermarket adding value to the customers, shareholders and employees.
Saving Account with Bank of Punjab services like
Cash Withdrawals
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Balance Inquiry
Mini Statement
Cheque Book
Request Bill Payment
Report lost ATM Card and Cheque Book
Safe Deposit Lockers
Standing Instructions
SWOT ANALYSIS
STRENGTHS
Safe Deposit Lockers.
The Bank accepts Standing instructions from its customers for effecting periodical
payments / transfer of funds from their operative accounts ( viz. Saving Bank / Current /
Cash credit / Overdraft) to other accounts, branches, banks or other beneficiaries
Overdraft Facilities : Overdraft facility to the extent of 50% of the monthly salary
Relationship Discounts : As a valued Bank of Punjab customer, please avail a Special
discount on Bank of Punjab's listed rates on Retail Loans like
Auto Loan
Consumer Loans
Minimum Balance : Individuals can open a Current Account with Rs. 5000/- in a Metro/
Urban centre, and Rs. 2500/- in a Rural / Semi-urban centre. Corporate houses can
open a Current Account with Rs.10,000 /- in a Metro / Urban centre, and Rs. 5000/- in a
Rural / Semi-urban centre.
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Interest Rate : Interest @ 3.50 % p.a. calculated on the minimum balance in your
account between the 10th and the last day of the month, credited half yearly into your
account.
Overdraft Facilities :
Overdraft facility to the extent of 50% of the monthly salary
Relationship Discounts :
As a valued Bank of Punjab customer, please avail a Special discount on Bank of
Punjab's listed rates on Retail Loans like
Auto Loan
Consumer Loans
Money can be withdrawn from any atm
Bank's own ATM Network at On-Site Branches and Offsite locations will swell from
existing 125 to over 200 in next one year
Customers in excess of 55,63,07 serviced by a team of 961 dedicated professionals.
The ATM network available to you includes 400000 ATMs affiliated to the Master card
"Cirrus" global network in addition to the Bank of Punjab ATMs across the Country.
The bank has established correspondent banking relationships across 60 countries.
WEAKNESS
Maximum number of branches are located in urban areas
Less owned atms
Lack of publicity of the bank
The branches are not present in many no of cities
minimum balance in your account between the 10th and the last day of the month,
credited half yearly into your account
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OPPORTUNITIES
Extended working hours
Any Time Anywhere Banking
Banking Through our Network
Online eBanking/Internet Banking
eAlerts & eNews
Mobile Banking
24 Hour 365 Days Interactive Customer Care Centre
Remote Customer Terminal
Telebanking / Fax Banking
Special Service For Senior Citizens
Special Service For Customer Who Can not Physically Access The Bank
THREATS
Many renowned private sectors banks prevailing
Asset structure is very less as comparision to various banks
2 branches of the bank in sri ganganagar.
less cross products exist in the branches of sri ganganagar.
Bank Of India
115
Bank of India was founded on 7th September, 1906 by a group of eminent businessmen from
Mumbai. The Bank was under private ownership and control till July 1969 when it was
nationalised along with 13 other banks.
Beginning with one office in Mumbai, with a paid-up capital of Rs.50 lakh and 50 employees,
the Bank has made a rapid growth over the years and blossomed into a mighty institution with
a strong national presence and sizable international operations. In business volume, the Bank
occupies a premier position among the nationalised banks
Our Mission "to provide superior, proactive banking services to niche markets globally, while
providing cost-effective, responsive services to others in our role as a development bank, and
in so doing, meet the requirements of our stakeholders".
Our Vision "to become the bank of choice for corporates, medium businesses and upmarket
retail customers and to provide cost effective developmental banking for small business, mass
market and rural markets"
SWOT ANALYSIS
STRENGTHS
This network will provide about 500 ATMs to its clients now to start with. More Banks
are likely to join the network in the next one month and will make available about 1,200
common ATMs for all their clients. The Bank has been the first among the nationalised
banks to establish a fully computerised branch and ATM facility
Multi Branch Banking (Anywhere Banking) service is available to customers of
networked branches of the Bank
The Bank has 2573 branches in India spread over all states/ union territories including
93 specialised branches.
116
The Bank's association with the capital market. entered into an agreement with the
Bombay Stock Exchange (BSE) to manage the BSE Clearing House
The Bank has sizable presence abroad, with a network of 21 branches (including three
representative office) at key banking and financial centres viz. London, Newyork,
Paris,Tokyo, Hong-Kong,and Singapore.
The international business accounts for around 20.10% of Bank's total business.
270 branches provide export credit. The expertise in this area has enabled the Bank to
achieve a leading position in providing export credit in certain areas like diamond export
The Bank, as on March 2003, had 93 specialized branches comprising Corporate
Banking Branches to undertake very large credit business
The Bank also has specialized Branches for Asset Recovery, Small Scale Industries,
Hi-tech Agriculture Finance, Lease Finance and Treasury.
WEAKNESS
Minimum balance in savings to be Rs 10000
There is no marketing network of the bank
No banking services like phone banking , doorstep banking , mobile banking etc. No
department for maintaining customer relation
People are less interested in opening an account in the banks due to less no of hrs
of working
No dmat ac in sri ganganagar branch
OPPORTUNITY
Extended working hours
Any Time Anywhere Banking
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Banking Through Network increments
Online eBanking / Internet Banking , eAlerts & eNews
24 Hour 365 Days Interactive Customer Care Centre
Remote Customer Terminal
Growing Banking Services In India
Uptrend Of Banking Sector
THREATS
Growing no of private sector banks
Rigrous selling of bank products by various banks
STATE BANK OF INDIA
The State Bank of India was thus born with a new sense of social purpose aided by the 480
offices comprising branches, sub offices and three Local Head Offices inherited from the
Imperial Bank. The concept of banking as mere repositories of the community's savings and
118
lenders to creditworthy parties was soon to give way to the concept of purposeful banking
subserving the growing and diversified financial needs of planned economic development. The
State Bank of India was destined to act as the pacesetter in this respect and lead the Indian
banking system into the exciting field of national development.
SWOT ANALYSIS
STRENGTHS
India`s top bank and best among nationalized banks
Provide better infrastructure than any other nationalized bank
There are 21 branches existing as per now including Jaipur and more than 10000
branches all over India.
The ATM network is above 3500 in India with 18 ATMs in Jaipur.
The ATMs facility of SBI Bank can be accessed from ICICI and HDFC bank.
Provide all types of insurance advisories
Provide all types cross banking products as any other private sector bank.
The transparency is also much better from other bank with least employee turnover.
Bank is going for globalizing its operation
Marketing network development at head office.
WEAKNESSES
Average waiting time for the customer is 15 to 20 minutes.
No separate customer care unit.
Minimum balance to be maintained per day is Rs. 1000
There is no separate marketing cell in Jaipur branches.
119
No other facility such as phone banking ,multiplicity and free financial advice to
customers.
No DMAT account of the bank.
Reduced banking hours.
OPPORTUNITIES
Setup a marketing cell at the local branch.
Increasing the number of ATM to compete with other private and multinational
banks.
Reducing the minimum balance per day.
Ensure that loans are diversified across several customer segments
Introduce robust risk scoring techniques to ensure better quality of loans, as well
as to enable better risk-adjusted returns at the portfolio level.
Improve the quality of credit monitoring systems so that slippage in asset quality
is minimized
Raise the share of non-fund income by increasing product offerings wherever
necessary by better use of technology
Reduce operating expenses by upgrading banking technology
Improve the management of market risks; and finally
Reduce the impact of operational risks by putting in place appropriate
frameworks to measure risks, mitigate them or insuring them.
THREATS
Growth of private players has led to shifting emphasis from public sector banks.
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Increase in foreign banks resulted in taking away business from PSU’s.
Increasing cross selling of products through banks.
State Bank of Bikaner and Jaipur
State Bank of Bikaner and Jaipur, a professionally managed Public Sector Bank with a track
record of uninterrupted profitability and dividend payment (except one year) since its inception
in 1963, came into existence after amalgamation of the erstwhile State Bank of Jaipur with
State Bank of Bikaner,as a subsidiary of State Bank of India.
SWOT ANALYSIS
STRENGTHS
The Bank is giving thrust on fee-based income and relatively safe high yielding
advances like Trade advances, Personal segment advances and Agricultural advances
The Bank provides Demat Services and Trusteeship for debenture holders to increase
its fee-based income
The Bank is planning to introduce Cash Management Services, for the benefit of
corporate customers.
The Bank is giving high priority for adoption of modern technology to provide efficient
and prompt customer service. The Bank has 351 computerised branches covering more
than 77% of its business.
There are 58 branches and 832 atms in all
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Provide other cross banking products
Highest customer base and trust of customer of sri ganganagar.
WEAKNESS
Limited customer dealing hrs in comparison to other private sector banks
No facilities to be provided for phone banking, d.mat a.c in sri ganganagar.
No marketing network in any of the sri ganganagar. branch.
Some branches in sri ganganagardo not have customer relation department
Very low infrastructure in some branches of sri ganganagar.
No banking in rural area
OPPORTUNITY
Hybrid products are upcoming
Making all the branches computerized.
Ensure that loans are diversified across several customer segments
Introduce robust risk scoring techniques to ensure better quality of loans, as well as to
enable better risk-adjusted returns at the portfolio level.
Improve the quality of credit monitoring systems so that slippage in asset quality is
minimized
Raise the share of non-fund income by increasing product offerings wherever necessary
by better use of technology
Reduce operating expenses by upgrading banking technology
Improve the management of market risks; and finally
122
Reduce the impact of operational risks by putting in place appropriate frameworks to
measure risks, mitigate them or insuring them.
THREATS
Growth of private players has led to shifting emphasis from public
sector banks.
Increase in foreign banks resulted in taking away business from PSU’s.
Increasing cross selling of products through banks.
123
7. CONCLUSION
The project is based of A PROJECT STUDY ON CONSUMER SATISFACTION OF SAVING
Account in ICICI bank.
the financial statement of the company for last four years. In this comparison between the
various ratios over the period have been done. The company is doing better year after year.
The study is restricted to only financial statements. The comparative performance shows that
the company is doing well. It had also done overall as in comparison with its competitors. The
company has managed to expand favorably at a very cost effective level. The company has
been growing at a healthy rate with every ratio improving at a steadily rate except few ratios.
Therefore we can say that the company is moving towards excellence to achieve its goals.
Efforts should be made to improve upon the lagging areas and a strong hold is required at the
places where company has managed to lead.
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8. Recommdation and suggestion
STRATEGY TO COMBAT COMPETITION
Strategy for Schools and colleges
Frist, efforts should be directed towards institutions which have a fee deposition counter
within the premises so that there is no need on the part of the bank to put extra efforts
for fee collection.
Provide life/accidental insurance cover to all the students and teachers of the institution
concerned for the period of their association with the concerned institute.
Nominal premium charges may be charged per student subject to negotiations towards
insurance cover.
Zero balance accounts facility for all the teachers apart from their salary accounts.
Free medical checkup to all the students at least once a year.
Promise special educational loans to meritorious students passing out of the concerned
isnstitution and excelling in competitive exams.
Provide renovation loans for the institution/college concerned at less then the prevailing
rates of interest.
Highlight the feature of third party banking i.e. Crediting any amount deposited in the
account of the concerned institution without any specific instructions.
Povide doorstep/ room service facility without any charge to the institution concerned.
Sponsor/co-sponsor the annual day event or sports day evens held at the institutions to
strengthen association with them.
Commit to waive any charges that might accrue due to any default on the part of
administration during the course of operation of accounts by them.
Provide discount on the AQB to be maintained to parents of students who decide to
open accounts with ICICI BANK.
Made arrangement for fee collection keeping in mind the convenience of parents and
the institution concerned.
125
STRATEGY FOR CINEMA HALLS:
In sri ganganagar cinema hall are the most happening places especially during vacations.
Cinema halls are these days going flooded with movie watchers. No doubt, these cinema halls
attract huge collections and they need to back their money everyday. Carrying huge amount of
money is again very risky. To capture this sector ICICI BANK should emphasize on doorstep
banking, phone banking and their offers of free bank facility to current account holders. The
same strategy can also be adopted to tap cinema halls owners.
Besides through slide shows and captions during the intermission time, ICICI BANK can
publicize its products, their milestones/achievements.
Placing canopies at the cinema halls (with due permission) is also a good idea.
Reason being audience usually come before the schedule time of starting of movies and they
spend this time either by watching movie posters/hoardings or loitering here and there. They
can be encouraged easily to divert their attention towards standard chartered canopies.Also
the ICICI BANK can place its logo in the footer of the posters of the box office hit films.
STRATEGY FOR MEDICINE SHOPS:
It is very difficult to tap the retail chemist storeowners at this point of time because they already
have their business account with at least one of the bank. Also ICICI BANK does not provide
overdraft and cash credit facility and personal loan to businessman. Therefore it is really a
hard target to combat.
Strategy to be followed:
ICICI BANK should contact their association heads seek to sponsor their meetings.
Provide personal loans to shopkeepers
STRATEGY FOR RESORTS AND WATERPARKS:
126
ICICI Bank account holders should get some discount on specific schemes of membership.
Also the tie up with the resort or the water park should provide an unchallenged opportunity to
ICICI bank to advertise and spread awareness among all the members and the prospective
customers.Most people are not aware about ICICI BANK hence by conduction the various
awareness programs; the banks awareness can be increased manifold. The bank must
provide O.D. and C.C. limits to its customers as other banks do. Due to the potential offered by
this industry the new ATM of the bank must be installed in the area nearing this industry.
STRATEGY FOR PETROL PUMP OWNERS:
Hordings and banners must be placed on the petrol pumps.
Charges for bounce cheque should be reduced.
127
9. References
[1] Ananth, Bindu (2005), "Financing Micro Finance: ICICI Bank’s Partnership Model"
Enterprise Development Journal, Vol 16, No.1
MIT Working Paper Series 02-17Demirguc-Kunt, Asli (2006), "Finance and Economic Development: Policy Choices for Developing
Harper, Malcolm and Kirsten Marie (2006), " ICICI Bank and Microfinance Linkages in India",
Small Enterprise Development Journal, Vol. 17,
(2006), "ICICI Bank to Cover 60 Districts by Year-end", Business Standard,
International Network of Alternative Financial Institutions Report on "Contemporary Issuein Regulation of Microfinance Sector", Unpublished document
Anand, Adhikari (2006), "ICICI Bank’s Rural Thrust", Business Today, June 4, 84-88
[9] "ICICI Bank Launches New Initiative in Microfinance", The Hindu Business Line, July 14,2006
ICICI Bank to Hire More Banking Correspondents", The Hindu Business Line, August, 2 200
128
Questionnaire
A project study on consumer satisfaction of saving Accounts holders reference of ICICI bank.
Dear respondent,
The project study on consumer satisfaction of saving accounts holders reference of ICICI bank. I would be highly appreciative if you could spare your valuable time to help me in this effort. You are requested to be honest and practical. Your responses shall be kept confidential and will be used for project study only.
Name ……………………………………………………………. Address …………………………………………………………… Occupation …………………………………………………………… Phone No. ……………………………………………………………
Q.1 which sector of banking you prefer most? (A) Public (B) Private (C) ForeignQ.2 Please specify your annual income? (A) Less than 1 lakh (B) 1 to 2 lakh (C) 3 to 5 lakh (D) More then 5 lakh Q.3 what features /attributes, while opening an account does you expect from a bank? (A) Quick service (B) Variety of products (C) Less formalities of documents (D) Working hour (E) Proper informationQ.4 In which of the following banks do you have your account? (A) ICICI (B) SBI bank (C) HDFC (D) AXIS (E) Other……………
Q.5 who influenced you to open an account in bank? (A) Bank employees (B) Prospectus (C) Advertisement (D) Friend
129
Q.6 which of the following attributes compelled you most while opening an account? (A) ATM cum debit card (B) Cheque book facility (C) The internet banking (D) Charging interest on saving account (E) Other……………………………..Q.7 your remarks for bank? (A) Excellent (B) Good (C) Average (D) Poor Why? ............................................................................Q.8 was the branch staff polite and courteous (A) Yes (B) NoQ.9 How long did you wait in queue? (A) 0-5 minutes (B) 5-10 minutes (C) More than 10 minutesQ.10 you are satisfying with after open your saving account services? (A) Yes (B) No Q.11 Are you satisfied with the response given by the staff for your request? (A) Yes (B) NoQ.12 which service is attracts you for open saving account? Ans……………………………………………………………….
Your suggestions (if any)…………………………………………………...………………………………………………………………………………..………………………………………………………………………………...
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10. Bibliography
Books:
Barley, Fundamental of investment, pearson third edition
Haugen, Morden investment theory, pearson sixth edition
Mathew,M J, Fundamental of insurance, Tmh second edition
Web sites:
www..com
www.cgap.org
www.icici.com
www.rbi.org
www.indiacore.com
www.icicibank.com
Magazines:
Business Today
Business India
Economic Times
Material provided by the company
Business World
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