BANKING SCENARIO

The Indian Banking industry, which is governed by the Banking Regulation

Act of India, 1949 can be broadly classified into two major categories, non-

scheduled banks and scheduled banks. Scheduled banks comprise

commercial banks and the co-operative banks. In terms of ownership,

commercial banks can be further grouped into nationalized banks, the State

Bank of India and its group banks, regional rural banks and private sector

banks (the old/ new domestic and foreign). These banks have over 67,000

branches spread across the country.

The first phase of financial reforms resulted in the nationalization of 14

major banks in 1969 and resulted in a shift from Class banking to Mass

banking. This in turn resulted in a significant growth in the geographical

coverage of banks. Every bank had to earmark a minimum percentage of

their loan portfolio to sectors identified as “priority sectors”. The

manufacturing sector also grew during the 1970s in protected environs and

the banking sector was a critical source. The next wave of reforms saw the

nationalization of 6 more commercial banks in 1980. Since then the number

of scheduled commercial banks increased four-fold and the number of bank

branches increased eight-fold.

After the second phase of financial sector reforms and liberalization of the

sector in the early nineties, the Public Sector Banks (PSB) s found it

extremely difficult to compete with the new private sector banks and the

foreign banks. The new private sector banks first made their appearance

after the guidelines permitting them were issued in January 1993. Eight new

private sector banks are presently in operation. These banks due to their late

1

start have access to state-of-the-art technology, which in turn helps them to

save on manpower costs and provide better services.

During the year 2000, the State Bank Of India (SBI) and its 7 associates

accounted for a 25 percent share in deposits and 28.1 percent share in credit.

The 20 nationalized banks accounted for 53.2 percent of the deposits and

47.5 percent of credit during the same period. The share of foreign banks

(numbering 42), regional rural banks and other scheduled commercial banks

accounted for 5.7 percent, 3.9 percent and 12.2 percent respectively in

deposits and 8.41 percent, 3.14 percent and 12.85 percent respectively in

credit during the year 2000.

Current Scenario

The industry is currently in a transition phase. On the one hand, the PSBs,

which are the mainstay of the Indian Banking system are in the process of

shedding their flab in terms of excessive manpower, excessive non

Performing Assets (Npas) and excessive governmental equity, while on the

other hand the private sector banks are consolidating themselves through

mergers and acquisitions.

PSBs, which currently account for more than 78 percent of total banking

industry assets are saddled with NPAs (a mind-boggling Rs 830 billion in

2000), falling revenues from traditional sources, lack of modern technology

and a massive workforce while the new private sector banks are forging

ahead and rewriting the traditional banking business model by way of their

sheer innovation and service. The PSBs are of course currently working out

2

challenging strategies even as 20 percent of their massive employee strength

has dwindled in the wake of the successful Voluntary Retirement Schemes

(VRS) schemes.

The private players however cannot match the PSB’s great reach, great size

and access to low cost deposits. Therefore one of the means for them to

combat the PSBs has been through the merger and acquisition (M& A)

route. Over the last two years, the industry has witnessed several such

instances. For instance, Hdfc Bank’s merger with Times Bank Icici

Bank’s acquisition of ITC Classic, Anagram Finance and Bank of

Madura. Centurion Bank, Indusind Bank, Bank of Punjab, Vysya Bank are

said to be on the lookout. The UTI bank- Global Trust Bank merger however

opened a pandora’s box and brought about the realization that all was not

well in the functioning of many of the private sector banks.

Private sector Banks have pioneered internet banking, phone banking,

anywhere banking, mobile banking, debit cards, Automatic Teller Machines

(ATMs) and combined various other services and integrated them into the

mainstream banking arena, while the PSBs are still grappling with

disgruntled employees in the aftermath of successful VRS schemes.

In a span of just four years, ICICI Bank has emerged as a consumer banking

behemoth. With a retail book of over Rs 56,000 crore (Rs 560 billion) and a

market share that is the envy of competition -- it has a share of over 30 per

cent -- ICICI Bank today has reached a commanding position.

3

The bank boasts of the widest integrated technology platform in the country

and only a fourth of its business takes place at its branches.

Its legacy of non-performing assets (NPAs) -- for which it has been rated

below its peers -- is now almost history with net NPLs (non-performing

loans) down to 2 per cent.

Armed with a much stronger balance sheet, ICICI Bank is aggressively

foraying into overseas markets and also has an eye on rural India.

This year consumer credit will grow by about Rs 40,000 crore (Rs 400

billion) from Rs 145,000 crore (Rs 1,450 billion) to Rs 185,000 crore (Rs

1,850 billion).

Last year, despite competition from small savings, incremental deposits

grew at 15 per cent and this year, too, the RBI (Reserve Bank of India) is

pegging deposit growth at 15 per cent. That's not too different from the

historic growth rate of 17 per cent over 30 years. I acknowledge that small

savings pose competition; they have a lot of arbitrage.

But, interestingly, mutual funds were not competitors. MFs, I find, are

competitors when interest rates decline; they don't have ability to compete

when rates rise.

Also insurance companies, which saw money because of the tax incentives,

could be under pressure with the incentives going.

Today, ICICI Bank, India has the largest market share and value among all

banks in retail or consumer financing. ICICI Bank is the largest issuer of

credit cards in India. It was the first bank to offer a wide network of ATM's

4

and had the largest network of ATM's till 2005,before SBI caught up with it.

ICICI bank now is widely seen as a sophisticated bank able to take on many

global banks in the Indian market. The bank is expanding in overseas

markets. It has operations in the UK, Hong Kong, Singapore and Canada. It

acquired a small bank in Russia recently. It has tie-ups with major banks in

the US and China. The bank is aggressively targeting the NRI (Non Resident

Indian) population for expanding its business.

The global opportunity spectrum is changing dramatically, and in the next

three years, our global business will contribute one-third of our book --

topline and bottomline. Today it's about 10-12 per cent. The NRI is a great

customer and the other is the Indian corporate who is globalising -- either in

the trade business or is setting up businesses abroad.

Our USP (unique selling proposition) is our technology; we can get him to

talk to his constituents online. The NRI is an interesting link because today

he has tremendous needs in India; he wants to remit money, buy a home,

especially the H1 visa guys. This year 10 per cent of our home loans will be

to NRIs.

5

CHAPTER – 1

INTRODUCTION

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INTRODUCTION

Founded in 1955 as Industrial Credit and Investment Corporation of India,

ICICI Limited was established by the Government of India in the 1960s as a

Financial Institution like Industrial Development Bank of India (IDBI) to

finance large industrial projects.

ICICI then, was not a bank and hence could not take retail deposits and was

not required to comply with Indian banking requirements for liquid reserves.

ICICI borrowed funds from various agencies like the World Bank, often at

concessional rates. These funds were deployed in large corporate loans.

However, the scenario changed drastically in1990s when ICICI founded a

separate legal entity and named it "ICICI Bank".ICICI Bank, as the name

would suggest, undertook normal banking operations like accepting

deposits, issuing credit cards, providing car loans etc. The experiment was

so successful that ICICI merged into ICICI Bank and this "reverse merger"

happened in 2002.

ICICI Bank (BSE: ICICI) (formerly Industrial Credit and Investment

Corporation of India) "ICICI Bank is India's second largest Bank with

consolidated total assets of over Rs. 470,000 crores and networth of over Rs.

50,000 crores. The Bank's capital adequacy ratio of 15.6% is among the

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highest levels of capital adequacy in large Indian banks and much higher

than the regulatory requirement of 9.0%. ICICI Bank made a profit after tax

of Rs. 4,158 crore (over US$ 850 million) in FY2008 and Rs. 3,014 crore

(US$ 619 million) in the nine months ended December 31, 2008."

ICICI Bank offers a wide range of banking products and financial services

to corporate and retail customers through a variety of delivery channels and

specialised subsidiaries and affiliates in the areas of investment banking, life

and non-life insurance, venture capital and asset management. ICICI Bank is

also the largest issuer of credit cards in India. Banks have also provide

internet banking, phone banking, anywhere banking, mobile banking, debit

cards, Automatic Teller Machines (ATMs) and combined various other

services and integrated them into the mainstream banking arena.

In a span of just four years, ICICI Bank has emerged as a consumer banking

behemoth. With a retail book of over Rs 56,000 crore (Rs 560 billion) and a

market share that is the envy of competition -- it has a share of over 30 per

cent -- ICICI Bank today has reached a commanding position. The bank

boasts of the widest integrated technology platform in the country and only a

fourth of its business takes place at its branches

The Bank is expanding in overseas markets and has the largest international

balance sheet among Indian banks. ICICI Bank now has wholly-owned

subsidiaries, branches and representatives offices in 18 countries, including

an offshore unit in Mumbai. This includes wholly owned subsidiaries in

Canada, Russia and the UK (the subsidiary through which the hisave savings

brand is operated), offshore banking units in Bahrain and Singapore, an

advisory branch in Dubai, branches in Belgium, Hong Kong and Sri Lanka,

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and representative offices in Bangladesh, China, Malaysia, Indonesia, South

Africa, Thailand, the United Arab Emirates and USA. Overseas, the Bank is

targeting the NRI (Non-Resident Indian) population in particular.

HISTORY

1955 The Industrial Credit and Investment Corporation of India

Limited (ICICI) was incorporated at the initiative of World Bank, the

Government of India and representatives of Indian industry, with the

objective of creating a development financial institution for providing

medium-term and long-term project financing to Indian businesses.

1994 ICICI established Banking Corporation as a banking subsidiary.

formerly Industrial Credit and Investment Corporation of India. Later,

ICICI Banking Corporation was renamed as 'ICICI Bank Limited'.

ICICI founded a separate legal entity, ICICI Bank, to undertake

normal banking operations - taking deposits, credit cards, car loans

etc.

2001 ICICI acquired Bank of Madura (est. 1943). Bank of Madura

was a Chettiar bank, and had acquired Chettinad Mercantile Bank (est.

1933) and Illanji Bank (established 1904) in the 1960s.

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2002 The Boards of Directors of ICICI and ICICI Bank approved the

reverse merger of ICICI, ICICI Personal Financial Services Limited

and ICICI Capital Services Limited, into ICICI Bank. After receiving

all necessary regulatory approvals, ICICI integrated the group's

financing and banking operations, both wholesale and retail, into a

single entity.

Also in 2002, ICICI Bank bought the Shimla and Darjeeling branches

that Standard Chartered Bank had inherited when it acquired

Grindlays Bank.

ICICI started its international expansion by opening representative

offices in New York and London.

2003 ICICI opened subsidiaries in Canada and the United Kingdom

(UK), and in the UK it established an alliance with Lloyds TSB. It

also opened an Offshore Banking Unit (OBU) in Singapore and

representative offices in Dubai and Shanghai.

2004 ICICI opens a rep office in Bangladesh to tap the extensive trade

between that country, India and South Africa.

2005 ICICI acquired Investitsionno-Kreditny Bank (IKB), a Russia

bank with about US$4mn in assets, head office in Balabanovo in the

Kaluga region, and with a branch in Moscow. ICICI renamed the bank

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ICICI Bank Eurasia. Also, ICICI established a branch in Dubai

International Financial Centre and in Hong Kong.

2006 ICICI Bank UK opened a branch in Antwerp, in Belgium. ICICI

opened representative offices in Bangkok, Jakarta, and Kuala Lumpur.

2007 ICICI amalgamated Sangli Bank, which was headquartered in

Sangli, in Maharashtra State, and which had 158 branches in

Maharashtra and another 31 in Karnataka State. Sangli Bank had been

founded in 1916 and was particularly strong in rural areas.

ICICI also received permission from the government of Qatar to open

a branch in Doha.

ICICI Bank Eurasia opened a second branch, this time in St.

Petersburg.

2008 The US Federal Reserve permitted ICICI to convert its

representative office in New York into a branch.

ICICI also established a branch in Frankfurt.

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NATURE OF BUSINESS:

ICICI is a financial intermediary which brings together the savers and borrowers in the

economic system. It collects funds from surplus units and lends the same to those units

whose income exceeds its expenditure. In the pursuit of these objectives the ICICI Bank

Limited (ICICI Bank) offers products and services in the areas of commercial banking to

retail and corporate customers (both domestic and international), treasury and investment

banking and other products, such as insurance and asset management. Its commercial

banking operations for retail customers consist of retail lending and deposits, distribution

of third-party investment products and other fee-based products and services, as well as

issuance of unsecured redeemable bonds. ICICI Bank provides a range of commercial

banking and project finance products and services, including loan products, fee and

commission-based products and services, deposits and foreign exchange and derivatives

products to corporations, growth-oriented middle market companies and small and

medium enterprises.

ONWNERSHIP TYPE

JOINT STOCK COMPANY:

ICICI BANK LIMITED, is the joint stock company which is incorporated under the

Companies Act, 1956 and licensed as a bank under the Banking Regulation Act, 1949

12

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).

VISION

To be the leading provider of financial services in India and a major

global bank.

To be the preferred brand for total financial and banking solutions for both

corporates and individuals

To be the dominant Life, Health and Pensions player built on trust by world-

class people and service.

 This we hope to achieve by:

Understanding the needs of customers and offering them superior

products and service

Leveraging technology to service customers quickly, efficiently and

conveniently

Developing and implementing superior risk management and

investment strategies to offer sustainable and stable returns to our

policyholders

Providing an enabling environment to foster growth and learning for

our employees 

And above all, building transparency in all our dealings

 

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The success of the company will be founded in its unflinching commitment

to 5 core values -- Integrity, Customer First, Boundaryless, Ownership and

Passion. Each of the values describe what the company stands for, the

qualities of our people and the way we work.

 

We do believe that we are on the threshold of an exciting new opportunity,

where we can play a significant role in redefining and reshaping the sector.

Given the quality of our parentage and the commitment of our team, there

are no limits to our growth.

 

MISSION

We 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 we

operate.

create value for our stakeholders

Provide the social facilities to the society

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IN order to build some brand equity by doing social service, ICICI Bank has

decided to undertake a MISSION for reducing low birth weight incidence at

the village level.

Undertaken by ICICI Bank's Social Initiatives Group, the bank has decided

to identify effective and scalable strategies for delivering the services

required to impact female nutritional status to tackle the incidence of low

birth babies.

Appointing several partners to work on this project an ICICI Bank official

says, ``This is going to be a significant MISSION supported by the bank and

the aim to understand whether a suitably trained health worker working with

the public health system and the integrated child development scheme can

provide quality services to impact low birth incidence at the village level.''

The MISSION is based in Ranchi district in Jharkhand and is being

implemented through a partnership between the Department of Health,

Government of Jharkhand, Krishi Gram Vokas Kendra(KGVK) and Care,

both of whom are NGOs based in Jharkhand and the Child in Need Institute

(CINI), an NGO based in West Bengal.

Adds the ICICI Bank official, ``ICICI Bank needs to participate in the all

round development of the country by focusing on some of its fundamental

problems.

It seeks to perform this role primarily as a funding agency, through its Social

Initiatives Group.''

15

ICICI Bank's Social Initiative Group's (SIG) mission is ``to identify and

support initiatives designed to improve the capacities of the poorest of the

poor to participate in the larger economy.''

The group seeks to achieve its mission by supporting initiatives that are cost-

effective, capable of large-scale replication and have the potential for near

and long-term impact.

``ICICI Bank believes in strengthening or supplementing existing systems

rather than investing in parallel structures.

The purpose is also to build long-term relationships with sustainable

partners,'', adds the bank official.

In the past, ICICI Bank has undertaken projects in the area of elementary

education and micro financial services.

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BOARD OF DIRECTORS

Mr. Narendra Murkumbi --------- Director

Mr. Madhabi Puri Buch --------- Executive director Mr. P M Sinha ---------- Director

Mr. M K Sharma ---------- Director Mr. Sonjoy Chatterjee ----------- Executive director

Mr. Anupam Puri ----------- Director Mr. T S Vijayan ----------- Director

Mr. K V Kamath ----------- Managing Dtr & CEO

Mr. N Vaghul ----------- Chairman

Mr. Marti G Subrahmanyam ----------- Director

Mr. Sridar Iyengar ------------ Director

Mr. Lakshmi N Mittal ------------ Director

Mr. V Prem Watsa ------------ Director

Mr. Chanda D Kochhar ------------ Joint Managing Dtr

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Mr. V Vaidyanathan ------------- Executive Director

Mr. Arun Ramanathan ------------- Director

REGISTERED OFFICE

ICICI Bank Limited

Registered Office: Landmark, Race Course Circle, Vadodara 390 007.

Corporate Office: ICICI Bank Towers, Bandra Kurla Complex, Mumbai 400

051.

SUBSIDIARIES

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ICICI SECURITIES

ICICI Securities, Ltd. operates as an investment banking company in India.

It offers corporate finance services, including advisory services related to

joint ventures, mergers, acquisitions, divestitures, spin-offs, and leveraged

buyouts; equity capital markets services, such as initial public offerings,

rights offerings, convertible offerings, and private placement and

international offerings for unlisted and listed entities; private equity/venture

capital services; and infrastructure advisory services. The company also

provides services related to fixed income and money markets, which include

designing instruments, pricing, structuring, documentation, and placing the

issue with institutional investors; debt trading, including corporate bond

trading and derivatives trading; and debt research services. In addition,

ICICI Securities provides research, sale, and trading services related to

equities markets. Further, the company deals in securities markets

transactions in the United States, as well as provides research and

investment advice to the U.S. investors. Additionally, it offers corporate

advisory services in the United Kingdom and Singapore.

Today ICICI Securities Ltd is the largest equity house in the country

providing end-to-end solutions (including web-based services) through the

largest non-banking distribution channel so as to fulfill all the diverse needs

19

of retail and corporate customers. ICICI Securities (I-Sec) has a dominant

position in its core segments of its operations - Corporate Finance including

Equity Capital Markets Advisory Services, Institutional Equities, Retail and

Financial Product Distribution.

With a full-service portfolio, a roster of blue-chip clients and performance

second to none, we have a formidable reputation within the industry. Today

ICICI Securities is among the leading Financial Institutions both on the

institutional as well as retail side.

Headquartered in Mumbai, I-Sec operates out of several locations in India.

ICICI Securities Inc., the stepdown wholly owned US subsidiary of the

company is a member of the National Association of Securities Dealers, Inc.

(NASD). As a result of this membership, ICICI Securities Inc. can engage in

permitted activities in the U.S. securities markets. These activities include

Dealing in Securities and Corporate Advisory Services in the United States

and providing research and investment advice to US investors.

ICICI Securities Inc. is also registered with the Financial Services Authority,

UK (FSA) and the Monetary Authority of Singapore (MAS). The company

is based in Mumbai, India. ICICI Securities, Ltd. operates as a subsidiary of

ICICI Bank Limited.

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ICICI PRUDENTIAL LIFE INSURANCE

ICICI Prudential Life Insurance Company is a joint venture between ICICI

Bank - one of India's foremost financial services companies-and Prudential

plc - a leading international financial services group headquartered in the

United Kingdom. Total capital infusion stands at Rs. 47.80 billion, with

ICICI Bank holding a stake of 74% and Prudential plc holding 26%.

 

We began our operations in December 2000 after receiving approval from

Insurance Regulatory Development Authority (IRDA). Today, our nation-

wide team comprises of 2099 branches (inclusive of 1,116 micro-offices),

over 276,000 advisors; and 18 bancassurance partners.

 

ICICI Prudential is the first life insurer in India to receive a National Insurer

Financial Strength rating of AAA (Ind) from Fitch ratings. For three years in

a row, ICICI Prudential has been voted as India's Most Trusted Private Life

Insurer, by The Economic Times - AC Nielsen ORG Marg survey of 'Most

Trusted Brands'. As we grow our distribution, product range and customer

base, we continue to tirelessly uphold our commitment to deliver world-

class financial solutions to customers all over India.

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ICICI VENTURE

ICICI Venture is one of the largest and most successful private equity firms

in India with funds under management in excess of USD 2 billion.

ICICI Venture, over the years has built an enviable portfolio of companies

across sectors including pharmaceuticals, Information Technology, media,

manufacturing, logistics, textiles, real estate etc thereby building sustainable

value.

It has several “firsts” to its credit in the Indian Private Equity industry.

Amongst them are India’s first leveraged buyout (Infomedia), the first real

estate investment (Cyber Gateway), the first mezzanine financing for a

acquisition (Arch Pharmalabs) and the first ‘royalty-based’ structured deal in

Pharma Research & Development (Dr Reddy’s).

ICICI Venture is a subsidiary of ICICI Bank, the largest private sector

financial services group in India.

22

ICICI LOMBARD

ICICI Lombard is a leading insurance company that is a joint undertaking

between two major organizations - ICICI Bank Limited and Fairfax

Financial Holdings Limited, a Canada based company. They have a share

amount of 74:26. ICICI Lombard has received approvals from various

pioneer organizations of finance world.

This ISO 9001: 2000 certified company is the first general insurance

company in India. ICICI Lombard General Insurance Company Limited

offers the best insurance coverage and provides extensive customer care

services. With its registered office at Mumbai, ICICI Lombard is spread all

over the country. This insurance company has its office at 65 different

locations of India.

ICICI Lombard is the leading private general insurance company in India. It

is known for its simple and quick documentation. Its claim to fame is its

extremely fast mode of settlement. Online policies are offered almost

instantly. The product line of ICICI Lombard General Insurance Company

Limited is extensive and covers almost all the fields.

The security system of the data transfer is made tight by 128-bit encryption.

It is the first company to have online interface for providing digitally signed

23

documents.

This Insurance Company has been honored with numerous prestigious

awards. It received the following awards:

Economic Times Avaya Global Connect Customer Responsiveness

Award 2006

Best Housing Insurance in the Smart Living Awards by 360 degrees, a

Times of India Group subsidiary, in Nov 2006

Gold Shield for "Excellence in Financial Reporting" by the ICAI

(Institute of Chartered Accountants of India), 2006

General Insurance Company of the Year at the 10th Asia Insurance

Industry Awards

ICICI Lombard offers a range of products and services, which include:

Health Insurance

Home Insurance

Motor Insurance

Overseas Travel insurance

Student Medical Insurance

Domestic Travel Insurance

Fire Insurance

Marine Insurance

Industrial Insurance

Corporate Insurance

Liability Insurance

Credit Insurance

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Shop Insurance

CHAPTER- 2

PRODUCTS

25

PRODUCTS OF ICICI BANK

ICICI Bank offers a wide range of banking products and financial

services to dynamic.) ICICI Bank is also the largest issuer of credit

cards in India. corporate and retail customers through a variety of

delivery channels and specialised subsidiaries and affiliates in the

areas of investment banking, life and non-life insurance, venture

capital and asset management. (These data are

PRODUCTS OF ICICI BANK

TYPES OF ACCOUNTS

1. SAVING ACCOUNT

A Savings Account for everyone with a host of convenient features and banking

channels to transact through. So now you can bank at your convenience, without the

stress of waiting in queues. We service savings accounts with 8 to 8 banking and ‘out of

branch’ banking

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2. LIFE PLUS SENIOR CITIZEN SAVING ACCOUNT

We understand that a Savings Account needs to do more after you reach the age of seniority;

we understand your concerns for safety and security. We have an ideal Savings Bank Service

for those who are 60 years and above. The Senior Citizen Services from ICICI Bank has several

advantages that are tailored to bring more convenience and enjoyment in your life.

3. YOUNG STAR SAVING ACCOUNT

It's really important to help children learn the value of finances and money management

at an early age. Banking is a serious business, but we make banking a pleasure and at the

same time fun. Children learn how to manage their personal finances.

27

4. RECURRING DEPOSIT ACCOUNT

When expenses are high, you may not have adequate funds to make big investments. An

ICICI Bank Recurring Deposit lets you invest small amounts of money every month

that ends up with a large saving on maturity. So you enjoy twin advantages- affordability

and higher earnings

4.FIXED DEPOSIT ACCOUNT

Safety, Flexibility, Liquidity and Returns!!!!

A combination of unbeatable features of the Fixed Deposit from ICICI Bank.

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LOANS

1.HOME LOANS

The No. 1 Home Loans Provider in the country, ICICI Bank Home Loans offers some

unbeatable benefits to its customers - Doorstep Service, Simplified Documentation and

Guidance throughout the Process.  It's really easy !

2.PERSONAL LOAN

If you're looking for a personal loan that's easy to get, your search ends here. ICICI

Bank Personal Loans are easy to get and absolutely hassle free. With minimum

documentation you can now secure a loan for an amount upto Rs. 15 lakhs.

29

3.CAR LOAN

The most preferred financier for car loans in the country. Network of more than 1000

channel partners in over 200 locations. Tie-ups with all leading automobile manufacturers

to ensure the best deals.

4.COMMERCIAL VEHICAL LOAN

30

Range of services on existing loans & extended products like funding of new vehicles,

refinance on used vehicles, balance transfer on high cost loans, top up on existing loans,

Xtend product, working capital loans & other banking products.

5.FARM EQUIPMENT LOAN

Preferred financier for almost all leading tractor manufacturers in the country. Flexible

repayment options in tandem with the farmer's seasonal liquidity. Monthly, Quarterly and

Half-yearly repayment patterns to choose from. Comfortable repayment tenures from 1

year to 9 years.

6.BUSINESS INSTALMENT LOAN

31

Business Installment Loan (BIL) helps the entities take a giant strides by fulfilling their

business requirements, be it working capital requirement, business expansion or to grab

that once in a lifetime business opportunity.

CARDS

1.CREDIT CARD

Credit Cards give you a smart way to shop, and offer you flexibility and convenience in

managing your finances. ICICI Bank credit cards provide a host of exciting offers and

benefits such as low interest rates, rewards programs, and a high credit and cash limit.

We offer different types of credit card to suit the different needs and requirements for

added features.

2.TRAVEL CARD

32

Presenting ICICI Bank Travel Card. The Hassle Free way to Travel the world. Traveling

with US Dollar, Euro, Pound Sterling or Swiss Francs; Looking for security and

convenience; take ICICI Bank Travel Card. Issued in duplicate. Offers the Pin based

security. Has the convenience of usage of Credit or Debit card.

3.DEBIT CARD

The ICICI Bank Debit Card is a revolutionary form of cash that allows customers to

access their bank account around the clock, around the world. The ICICI Bank Debit

Card can be used for shopping at more than 3.5 Lakh merchants in India and 24 million

merchants worldwide.

4.COMMERCIAL CARD

33

ICICI Bank Commercial Cards have been designed as payment solutions for large &

mid-sized organizations. A widely accepted concept internationally, Commercial Cards

help to better streamline payment processes & thus increase efficiencies.

5.MERCHANT SERVICE

Give your customer quick and convenient ways to make payments. with ICICI bank's two

payment acceptance solution, enjoy business like never before. POS Machine at your

retail establishment will assist you to accept cards. Payseal, online payment gateway will

make e-commerce more convenient, easy and secure on internet... your business can only

get even bigger and better

34

LIFE INSURANCE

35

1.INVESTMENT & SAVING PLANS

2.RETIREMENT PLANS

3.CHILD PLANS

1.INVESTMENT & SAVING PLANS

Endowment policies are a good way of putting aside your savings today for a future goal

- whether it's to buy a house in India or fund your entrepreneurial vision. Our savings-

oriented policies are designed to make your savings grow and have them available to you

at the end of a fixed number of years or through the term of the plan.

LifeTime II - A complete market-linked insurance plan that adapts itself to your changing

protection and investment needs, throughout a lifetime.

36

Investshield Gold - A unit-linked insurance plan with an assurance of Capital

Guarantee*, which offers you the benefit of a limited premium payment and coverage

term.

Premier Life - A market linked insurance plans that meets your Investment and

Protection needs.

2.RETIREMENT PLANS

Many of us picture ourselves enjoying the fruits of our labour after retirement - going on

a dream vacation, or helping our child's career take wing. Financing all this will depend

on our personal savings and investments, so its important to save for the future from

today. Our retirement plans are designed to help you systematically save, so that you can

enjoy all the things you have dreamed of when you retire.

37

LifeTime Pension II - A regular premium linked deferred pension plan that gives you the

freedom to choose the amount of premium, and invest in market-linked funds, to generate

potentially higher returns.

3.CHILD PLANS

As a responsible parent, you want to ensure a hassle-free, successful life for your child.

However, life is full of uncertainties and even the best-laid plans can go wrong. SmartKid

Education Plans are designed to provide flexibility and to safeguard your child's future

education and lifestyle, taking all possibilities into account.SmartKid Child Plans has a

bouquet of three products which can help you secure your child's education.

- Unit-linked Regular Premium

- Unit-linked Single Premium

38

- Regular Premium SmartKid

DEMAT SERVICE

Feature of demat service:

E-Instructions: You can transfer securities 24 hours a day, 7 days a week through

Internet & Interactive Voice Response (IVR) at a lower cost. Now with "Speak to

transfer", you can also transfer or pledge instructions through our customer care officer.

39

Consolidation Demat Account: Dematerialise your physical shares in various holding

patterns and consolidate all such scattered holdings into your primary demat account at

reduced cost.

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

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

statement.

CONTD…….

Mobile Request: Access your demat account by sending SMS to enquire about

Holdings, Transactions, Bill & ISIN details.

Mobile Alerts: Receive SMS alerts for all debits/credits as well as for any request which

cannot be processed.

Dedicated customer care executives specially trained at our call centre, to handle

all your queries.

Countrywide network of over 300 branches, you are never far from an ICICI

Bank Demat Services outlet.

40

TARGET CUSTOMERS

ICICI Bank decided to target India’s burgeoning middle class and corporate

segment by offering a high level of customer service and efficiency that

rivaled the foreign banks, on a much larger scale, at a lower cost. A crucial

aspect of this strategy was the emphasis on technology.

BRANCHES

41

Bank has total assets of about USD 100 billion (at the end of March 2008), a

network of over 1,399 branches, 22 regional offices and 49 regional

processing centres, about 4,485 ATMs (at the end of September 2008), and

24 million customers (at the end of July 2007).

COMPETITORS

Top ICICI Bank Competitors are:

STATE BANK OF INDIA

PUNJAB NATIONAL BANK

CANARA BANK

STATE BANK OF INDIA

Managing Director and Group Executive (Corporate Banking): Tara Shankar (T.S.) Bhattacharya Chairman:O. P. Bhatt

42

Industry Information Sector: Financial

Industry: Foreign Regional Banks

State Bank of India is the nation's largest and oldest bank. Tracing its roots

back some 200 years to the British East India Company (and initially

established as the Bank of Calcutta in 1806), the bank operates more than

15,000 branches within India, where it also owns majority stakes in six

associate banks. State Bank of India (SBI) has more than 80 offices in nearly

35 other countries, including multiple locations in the US, Canada, and

Nigeria. The bank has other units devoted to capital markets, fund

management, factoring and commercial services, credit cards, and brokerage

services. The Reserve Bank of India owns about 60% of State Bank of India.

Contact InformationAddress: Central Office, 8th Fl., Madame Cama RoadMumbai 400021, IndiaPhone: +91-22-2288-3888Fax: +91-22-2285-5348

PUNJAB NATIONAL BANK

Chairman and Managing Director: Satish C. Gupta

Industry Information:

43

Sector: Financial

Industry: Foreign Regional Banks

Punjab National Bank (PNB) is one of India's largest nationalized banks,

with some 4,500 locations. The financial institution offers services in

personal and corporate banking, including industrial, agricultural, and export

finance, as well as international banking. Its personal lending services

include loans for housing, autos, and education. PNB's diverse client list

includes Indian conglomerates, small and mid-sized businesses, non-resident

Indians, and multinational companies. The bank was established in Lahore

in 1895 -- before the country was partitioned into India and Pakistan in

1947.

Contact Information

Address: 7 Bhikaji Cama PlaceNew Delhi 110066, India Phone: +91-11-2617-6297

CANARA BANK

Chairman and Managing Director: A. C. Mahajan

Industry Information:

Sector: Financial

Industry: Foreign Regional Banks

Canara Bank has a can-do attitude about banking in India. One of India's

largest banks, Canara Bank (also known as CanBank) has a network of more

44

than 2,500 branches throughout India and branches in Hong Kong and

London. All of Canara Bank's branches -- including those located in rural

areas -- are computerized, in a country where it is not a given that banks can

make such a claim. (The bank considers 30% of its branches to be located in

rural areas.) The modernization of all branches allows the bank to offer its

customers networked ATMs, telebanking, internet banking, and debit card

services. Other services include asset management and factoring. The

financial institution is 73% owned by India's government.

Contact InformationAddress:112 J C Rd.Bangalore, Karnataka 560002, India Phone: +91-80-2224-8831

45

MARKET SHARE

The fact that the top 8 banks account for barely 54 per cent of the market share suggests that several smaller players occupy the remaining 46 per cent.

46

FY04 (Rs bn)Advances Market

share

SBI 1,955 22.7%

ICICI Bank 631 7.3%

Canara Bank 476 5.5%

PNB 472 5.5%

Bank of India 458 5.3%

Bank of Baroda 356 4.1%

HDFC Bank 177 2.1%

Standard Chartered 162 1.9%

Total 4,687 54.4%

POSITIONING

ICICI Bank positioned itself as technology-savvy, customer-friendly bank.

To support its technology-focused strategy, ICICI Bank needed a robust

technology platform that would help it achieve its business goals. After an

intense evaluation of several global vendors, ICICI Bank identified Infosys

as its technology partner and selected Finacle, the universal banking solution

from Infosys, as its core banking platform. An open systems approach and

low Total Cost of Ownership (TCO) were some of the key benefits Finacle

offered the bank. Unlike most banks of that era, ICICI Bank was automated

from day one, when its first branch opened in the city of Chennai. ICICI

Bank was set up when the process of deregulation and liberalization had just

begun in India, and the Reserve Bank of India (India’s central bank) had

paved the way for private players in the banking sector, which at that time

was dominated by state-owned and foreign banks. Serving a majority of the

country’s populace, state-owned banks had a large branch network, with

minimal or no automation and had little focus on service. Foreign banks, on

the other hand, deployed high-end technology, had innovative product

offerings, but had a very small branch network that serviced only corporates

and individuals with high net-worth.

47

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ICICI Bank Limited, India's second largest Bank brings its global brand ambassador, actor Shahrukh Khan, which helps the bank to advertise his product and services globally.

48

Shahrukh Khan.

CHAPTER-3

FINANCIAL

INFORMATION

49

STOCK EXCHANGE

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).

Lists of Exchanges

Bangalore Stock Exchange Ltd.

Calcutta Stock Exchange Association Ltd.

Cochin Stock Exchange Ltd

Delhi Stock Exchange Assoc. Ltd

Inter-connected Stock Exchange of India

Ludhiana Stock Exchange Assoc. Ltd.

Madras Stock Exchange Ltd.,

National Stock Exchange of India Ltd.

Over The Counter Exchange Of India Ltd

The Stock Exchan of Mumbai assoc Ltd

Uttar Pradesh Exchange Assoc Ltd.

50

CompanyWeight in

SensexWeight in

NiftyVariance

Promoter holdings (%)

Infosys Technologies

8.66 3.79 4.87 16.49

Reliance Industries

17.41 12.95 4.46 49.03

ICICI Bank 5.74 2.13 3.61 0

Larsen & Toubro

5.61 2.31 3.3 0

HDFC 5.41 2.37 3.04 0

ITC 6.47 3.44 3.03 0

HDFC Bank 5.08 2.22 2.86 19.38

Wipro 1.06 1.97 -0.91 79.32

DLF 0.75 1.85 -1.1 88.55

ONGC 4.63 8.6 -3.97 74.14

NTPC 2.98 7.4 -4.42 89.5

WEIGHTED INDEX

51

CAPITAL STRUCTURE

From Year

To Year

Class Of Share

Authorized Capital

Issued Capital

Paid Up Shares (Nos)

Paid Up Face Value

Paid Up Capital

2007 2008Equity Share

1,275.00 1,112.691112687495 10 1,112.69

2006 2007Equity Share

1,000.00 899.27 899266672 10 899.27

2005 2006Equity Share

1,000.00 153.84 153844503 10 153.84

2005 2006Equity Share

1,000.00 889.82 889823901 10 889.82

2004 2005Equity Share

1,550.00 616.39 350000000 10 350.00

2004 2005Equity Share

1,550.00 616.39 616391905 10 616.39

2003 2004Equity Share

1,550.00 613.02 613021301 10 613.02

2001 2002Equity Share

300.00 220.36 220358680 10 220.36

2000 2001Equity Share

300.00 196.82 196818880 10 196.82

1999 2000Equity Share

300.00 196.82 196818880 10 196.82

1997 1999Equity Share

300.00 165.00 165000700 10 165.00

1995 1997Equity Share

300.00 150.00 150000700 10 150.00

1994 1995Equity Share

300.00 150.00 150000000 7 105.00

1994 1995Equity Share

300.00 150.00 700 10 -

52

BALANCE SHEET(2006-2008)

Balance Sheet (Rs. in millions)

LiabilitiesMarch-

2008(12 Months)

March- 2007

(12 Months)

March- 2006

(12 Months)Share Capital 14,626.79 12,493.44 12,398.35Reserves & Surplus 453,575.31 234,139.21 213,161.57

Net Worth (1) 468,202.10 246,632.64 225,559.92Secured Loans (2) 656,484.34 512,560.26 385,219.14Unsecured Loans (3) 2,444,310.50 2,305,101.86 1,650,831.71

Total Liabilities(1+2+3)

3,568,996.94 3,064,294.77 2,261,610.77

AssetsMarch-

2008(12 Months)

March- 2007

(12 Months)

March- 2006

(12 Months)Fixed Assets

Gross Block 70,360.04 62,985.63 59,685.65(-) Acc. Depreciation 29,271.06 23,751.40 19,878.54

Net Block (A) 41,088.98 39,234.23 39,807.12Capital Work in

Prgs. (B)0.00 1,896.63 1,479.42

Investments (C) 1,114,543.42 912,578.42 715,473.94Current Assets, Loans & Advs.

Inventories 0.00 0.00 0.00Sundry Debtors 0.00 0.00 0.00Cash And Bank 380,411.29 371,213.25 170,402.25Loans And Advances 2,461,907.08 2,121,658.60 1,586,726.82

(i)2,842,318.37 2,492,871.85 1,757,129.06Current Liab. & Provs.

Current Liabilities 400,673.68 358,817.11 238,016.23Provisions 28,280.15 23,469.25 14,262.55

(ii) 428,953.83 382,286.36 252,278.78Net Curr. Assets (i -

ii) (D)2,413,364.55 2,110,585.49 1,504,850.28

Misc. Expenses (E) 0.00 0.00 0.00Total Assets (A+B+C+D+E)

3,568,996.94 3,064,294.77 2,261,610.77

Quarterly Results (Rs. in Millions)

53

Quarterly Results (Rs. in Millions)December2008

[3 Quarter]September2008

[2 Quarter]December2007

[3 Quarter]

Sales Turnover 78360.80 78349.80 79117.70Other Income 25145.40 18773.30 24265.90Total Income 103506.20 97123.10 103383.60Total Expenditure 17341.10 17400.40 21276.10Operating Profit 86165.10 79722.70 82107.50Interest 58456.70 56873.60 59520.80Gross Profit 27708.40 22849.10 22586.70Depreciation 0.00 0.00 0.00Tax 4909.90 3471.70 2681.20ReportedPAT 12721.50 10142.10 12302.10Equity Capital 11132.90 11132.90 11122.70Extra Ordinary Items 0.00 0.00 0.00Adjusted Profit After Extra Ordinary Item 12721.50 10142.10 12302.10Book Value 417.43 417.43 0.00EPS 11.43 9.11 11.06

Dividend 0.00 0.00 0.00

Quarterly Results (in %)

54

Quarterly Results (in %)

% Change over September, 2008

% Change over December, 2007

Sales Turnover 0.01 -0.96Other Income 33.94 3.62Total Income 6.57 0.12Total Expenditure -0.34 -18.49Operating Profit 8.08 4.94Interest 2.78 -1.79Gross Profit 21.27 22.68Depreciation 0.00 0.00Tax 41.43 83.12ReportedPAT 25.43 3.41Equity Capital 0.00 0.09Extra Ordinary Items 0.00 0.00Adjusted Profit After Extra Ordinary Item 25.43 3.41Book Value 0.00 0.00EPS 25.47 3.35Dividend 0.00 0.00

RATIO ANALYSIS

55

RatiosProfitability Ratios %

March- 2008(12 months)

March- 2007(12 months)

March- 2006(12 months)

Operating Profit Margin

14.45 13.33 18.66

Gross Profit Margin

12.99 11.41 15.10

Net Profit Margin 10.51 10.81 14.12Turnover RatiosInventory Turnover Ratio

0.00 0.00 0.00

Debtor Turnover Ratio

0.00 0.00 0.00

Fixed Asset Turnover Ratio

5.61 4.52 2.93

Solvency RatioCurrent Ratio 0 .73 0 .62 0 .62Debt Equity Ratio 5.22 9.35 7.32Interest Covering Ratio

0 .24 0 .23 0 .34

Performance Ratio %Return On Investment

1.95 1.48 1.74

Return On Networth

8.94 12.79 11.43

Dividend Yield 33.12 33.89 34.08

SHARE HOLDING PATTERN

Holder's Name No of Shares % Share Holding

56

Directors 914352 0.08%

OtherCompanies 52612667 4.73%

ForeignNRI 5389371 0.48%

ForeignOcb 50060 0.00%

ForeignOthers 10529566 0.95%

ForeignInstitutions 409979962 36.83%

ForeignIndustries 3790 0.00%

Others

304852852 27.38%

NBanksMutualFunds 88067601 7.91%

GeneralPublic 82265782 7.39%

FinancialInstitutions 158584639 14.25%

57

CHAPTER-4

HUMAN RESOURCES

&

HR POLICIES

58

ORGANITION STRUCTURE

An organization structure as an integral part of a system or a group. It has to accept the discipline and regulatory ethics of the system/group. It has also to compete within the group and strive to excel in its performance. An organization structure also operates with

in a social, economic and political environment

We believe that the structure of an organization needs to be dynamic, constantly evolvingand responsive to changes both in the external and internal environments. Our organizationalstructure is designed to support our business goals, and is flexible while at the same timeensuring effective control and supervision and consistency in standards across businessgroups.

59

NUMBER OF EMPLOYEES

Total number of employees in the organition are 25479

60

HR POLICIES

HR systems and policies are thereby designed to unleash the latent

capability of our people by fostering a continuous learning and performance

based culture where our people have the opportunity to grow and succeed

and realize their true potential while delivering high quality services.

To achieve these objectives our HR Policy is pivotal and aims to:

Achieve organizational and business goals with firm belief that "Our

Employees are our Future".

Have empowered and accountable employees to take decisions in

response to emerging challenges and opportunities in a competitive

environment.

Endeavor to make our employees "The Best" with an urge for and

commitment to excellence

61

RECRUITMENT PROCESS

In ICICI Bank RECRUITMENT PROCESS at all levels , we have carried out an in-

depth study of the competencies required to succeed in ICICI Bank which are called the

ICICI Bank DNA anchors. As per our research, the DNA anchors which indicated

success at the entry level in ICICI Bank are:

Customer first

Passion

Dynamism

Compliance with conscience

In order to assess the same we use a set of tools -

a. Aptitude Tests (for applicants with 0-2 years of work experience).

The tests are designed to assess basic aptitude of candidates including numerical

comprehension, verbal comprehension, logical reasoning and basic checking abilities.

These are important skills for the role of an entry-level manager and people who do well

in these tests tend to do well in their jobs at ICICI Bank. The total time taken in this

exercise is 55 minutes.

b.Occupational Personality Questionnaire.

Applicants are also required to complete the Occupational Personality Questionnaire

(OPQ) before they appear for the selection, the results of which are integrated into our

selection process.

62

SELECTION PROCEDURE

The selection process at all levels in ICICI Bank, they have carried out an in-depth study

of the competencies required to succeed in ICICI Bank. As per ICICI research, the

competencies which indicated success at the entry level in ICICI Bank are: 

Drive for results 

Process Orientation 

Interpersonal Effectiveness 

Analytical Thinking 

Innovation & 

Team Effectiveness 

In order to assess the same ICICI  use a set of 3 tools - 

A Mental Ability Tests (for candidates with 0-2 years of work experience) 

a Personality profiling system

The Mental Ability Test to find a fair and objective assessment of candidates’ skills in the

areas of verbal reasoning, numerical reasoning & diagrammatic reasoning. These are

important skills for the role of an entry level manager and people who do well in these

tests tend to do well in their jobs at ICICI Bank. The total time taken in this exercise is 2

hours with each of the three sections lasting 40 minutes. 

Candidates (at all levels regardless of the number of years of work experience) are also

required to complete the Occupational Personality Questionnaire (OPQ ) before they

63

appear for the interview, the results of which are integrated into ICICI  interview

process. 

SWOT ANALYSIS

OF

ICICI BANK

64

SWOT ANALYSIS:

SWOT analysis is done for a company, to find out its

overall Strengths, Weaknesses, Threats and opportunities

leading to gauging the competitive potential of the

company.

The SWOT Analysis enables a company to recognize its

market standing and adopt strategies accordingly. Here

SWOT analysis of ICICI bank is made to understand the

positioning of the bank better:

65

STRENGTHS

1. BRAND NAME: ICICI Bank has earned a reputation in the market for extending

quality services to the market vis-Ã -vis its competitors. It has earned a strong Brand

name in banking in a very short span of time.

2. MARKET SHARE: ICICI Bank has the largest market share of 34% in the IT & ITES

industry in Hyderabad according to our survey (within the limitation of the sample size.)

3. HUGE NETWORK: ICICI Bank has the highest number of linked branches in the

country. The bank operates through a network of 450 BRANCHES AND over 1800

ATMs across India, thus enabling them to serve customer in better way.

4. DIVERSIFIED PORTFOLIO: ICICI Bank has all the products under its belt, which

help it to extend the relationship with existing customer. ICICI Bank has umbrella of

products to offer their customers, if once customer has relationship with the bank. Some

Products, which ICICI Bank is offering are:

• Retail Banking

• Business Banking

66

• Merchant Establishment Services (EDC Machine)

• Personal loans & Car loans

• Demat Services with E-Broking

• Mutual Fund (ICICI Bank is the Distributor of all Mutual Fund)

• Insurance

• Housing Loans

5. SALARY ACCOUNT: One very interesting thing that we have observed in our survey

is that ICICI is having an edge over other banks in case of Salary Account. Most of the

companies are having their Salary Account with ICICI even if their Current Account is

with any other Bank. This is mainly because of the huge network of ATMs and branches

of ICICI.

6. WORKING HOURS: ICICI is the only bank which is having its working hours from 8

to 8 which is one of the major strength of ICICI Bank with respect to IT & ITES

Industry. As most of the IT & ITES companies are global players and their Parent

company is in US, so they have to work according to their office time. Thus some have

their Office time in the morning and some have it in the evening so if the working hour of

the bank is 8 to 8 it is very convenient for them.

7. TREASURY DEPARTMENT: ICICI is the only bank which is having its treasury

department especially for Hyderabad Customers. So customers can get the best rates for

foreign exchange.

8. AGGRESSIVE MARKETING: ICICI Bank is known for its aggressive marketing of

its products. Recent Endorsement of its product by AMITABH BAHCHAN proves the

same. This gives ICICI an edge over other banks.

67

9. TECHNOLOGY: From its inception, ICICI Bank has adopted a policy of selecting

internationally proven and specialized Packaged Systems for its technology. ICICI

bank’s technology platform has been acknowledged globally as one of the best in

terms of robustness, flexibility and cost efficiency. ICICI Bank is in a position to leverage

this platform to further build cost and service advantage.

WEAKNESS

1. TRANSACTION COST: ICICI Bank charges high cost for its transactions. Through

our data analysis we have find out that most of the small companies prefer nationalized

banks only because of this cost factor. Also the group has found out that there are

companies which are going for multi bank system i.e. they are using only those facilities

of ICICI Bank which are provided at cheaper rates (read Salary Account) and for other

services they are going to nationalize banks and MNCs (read Forex). So there exists a

huge potential for ICICI Bank if they are ready to make their transaction cost flexible.

2. FOCUS ONLY ON HIGH END CUSTOMERS: The bank targets only the top bracket

of clients and does not cater to the needs of small customers. Due to this reason the bank

may sometimes loose good clients.

3. DEFENSIVE APPROACH IN LENDING: ICICI Bank has a defensive approach in

lending. Mainly to IT & ITES companies Bank do not provide loan as these companies

are not having collaterals so bank hesitate in giving loans to them. Because of this policy

companies prefer nationalized banks and ICICI Bank in turn sometimes loose potential

customers.

68

4. LITTLE PRESENCE OUTSIDE INDIA: ICICI Bank is having little presence Outside

India, because of which companies are preferring MNC Bank, mainly Citibank. So if

ICICI Bank tries to emerge outside India then it has a huge potential of customers.

5. POOR CUSTOMER CARE/SERVICE: With its aggressive marketing ICICI Bank is

rapidly increasing its customer base. They are not however, increasing the number of

employees accordingly. This is leading to deterioration of the standard of customer

service.

OPPORTUNITIES

1. NEW IT & ITES COMPANIES: IT & ITES sector is on a boom in the Indian market

context, with new companies mushrooming in the market; it opens the door for ICICI

bank to capture the huge untapped market.

2. Dissatisfied Customers of Other Banks: The group from its survey and analysis of IT

companies have found out that there are many companies which are not satisfied with its

current bank, so ICICI with its superior service quality and long working hours can

capture those customers.

3. Remittances: From the analysis group has also found out that ICICI bank has very little

presence as far as the EEFC account is concerned. Companies prefer to bank with MNCs

(which have greater presence in the foreign countries) and nationalized banks (which

according to the companies provide lower transaction rates) to get their inward

remittances in spite of ICICI being providing one of the most competitive rates. So the

bank can promote its EEFC account better and get the key to the door of huge potential

market.

69

4. Business advising for smaller Players: The analysis has also indicated that the concept

of business advising though very popular with the higher end players is virtually non

existent in the lower end of the market. ICICI should take this opportunity to provide

business advising to the smaller companies at competitive rates and try to take the first

mover advantage.

THREATS

1) Advent of MNC banks: Large numbers of MNC banks are mushrooming in the Indian

market due to the friendly policies adopted by the government. This can increase the

level of competition and prove a potential threat for the market share of ICICI bank.

2) Dissatisfied Customers: The analysis indicated that though most of the companies are

satisfied with the products offered by ICICI bank but the poor customer support/ service

is creating a lot of dissatisfaction among the customers, this can prove to be a serious

problem as far as the market reputation of the bank is concerned and cane be a major

threat in future business acquisition.

3) Ever improving nationalized banks: With PSU banks like SBI going all out to compete

with the private banks and government giving them a free hand to do so, it can prove to

be serious threat for banks like ICICI.

70

BIBLIOGRAPHY

WWW.GOOGLE.COM

WWW.ICICIBANK.COM

WWW.WIKIPEDIA.COM

71