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An Internship report on Organizational study
at
ICICI Direct, Bangalore
Submitted in partial fulfillment of the requirements
of
Masters of Business Administration Degree Course
of Bangalore University
By
Ms. ALPANA SINGH
Reg. No: 06XQCM6006
Under the guidance and supervision
Of
Prof. K.V. PRABHAKAR
Senior Professor, MPBIM
(Internal Guide)
M.P.Birla Institute of Management
Associate Bharatiya Vidya Bhavan
#43, Race Course Road,
Bangalore- 560 001
2006-08
M. P. Birla Institute of Management
Associate Bharatiya Vidya Bhavan # 43, Race Course Road, Bangalore ñ 560 001, India.
Tel.: 080 ñ 22382798/ 9634 Fax: 080-22389635 E-mail: [email protected] Website: www.mpbim.com
DECLARATION I hereby declare that this report entitled "AN ORGANIZATIONAL STUDY AND
MICROSCOPIC STUDY at ICICI DIRECT", Bangalore is a record of independent
work carried out by me towards partial fulfillment of requirements of the MBA
Degree Course of Bangalore University at M.P.Birla Institute of Management. The
report has not been submitted in part or full towards any other degree or diploma. Place: Bangalore Ms. Alpana Singh
Date: Register Number: 06XQCM6006
M. P. Birla Institute of Management Associate Bharatiya Vidya Bhavan
# 43, Race Course Road, Bangalore ñ 560 001, India. Tel.: 080 ñ 22382798/ 9634 Fax: 080-22389635
E-mail: [email protected] Website: www.mpbim.com
CERTIFICATE
This is to certify the internship project report entitled "An ORGANIZATIONAL STUDY & MICROSCOPIC STUDY at ICICI DIRECT. Bangalore" has been prepared by Ms. ALPANA SINGH (registration no.06XQCM6006) under the guidance of Dr.K.V.
Prabhakar, Senior Professor, M.P.Birla Institute of Management (Associate Bharatiya
Vidya Bhavan), Bangalore (Internal Guide)and Mr. Robin John, Sales Manager, ICICI DIRECT. Bangalore"
. Place: Bangalore
Date: (Dr. N. S. Malavalli) Principal
M. P. Birla Institute of Management
Associate Bharatiya Vidya Bhavan
# 43, Race Course Road, Bangalore ñ 560 001, India. Tel.: 080 ñ 22382798/ 9634 Fax: 080-22389635
E-mail: [email protected] Website: www.mpbim.com CERTIFICATE This is to certify that the internship report entitled "An ORGANIZATIONAL STUDY &
MICROSCOPIC STUDY AT ICICI DIRECT, Bangalore by Ms. ALPANA SINGH is a
bonafide work done under my guidance during the academic year 2007-08
Place: Bangalore Dr.K.V. Prabhakar
Date: Senior Professor
MPBIM Bangalore
ACKNOWLEDGEMENTS
I am thankful to Dr.Nagesh Mallavali, Principal M.P. Birla Institute of Management
and Dr.K.V.Prabhakar, (Internal Guide) Senior Professor M.P.B.I.M, Bangalore, who
have given their valuable academic support and advice during my project.
I profusely thank Mr. Robin John, (External Guide) Sales Manager, ICICI Direct,
Bangalore, for all the support and guidance extended for this project.
I equally thank all the employees and executives of ICICI DIRECT Bangalore
who have extended their suggestions and helped me learn a lot about processes
and their performance.
I also wish to express my gratitude to all my friends who directly and indirectly helped me
through this internship.
Ms. ALPANA SINGH
Contents
Pg.no
1. Executive Summary
2. Overview
3. Background
4. Industry Profile
5. Organization Structure
6. Product Portfolio
7. What is so Unique about ICICI Direct.com
8. Why People Prefer ICICI Bank
9. Mutual Fund Investment
10. Human Resource of ICICI direct
11. Vision Goal and SWOT Analysis
12. Recommendation
13. Bibliography
14. Microscopic Study on Training
01
03
05
15
10
20
27
29
32
37
41
48
50
51
6
EXECUTIVE SUMMARY
ICICI Ltd. Is one of the India’s largest financial institution is gearing up to transform itself
in to a universal bank leveraging on the .click and mortar strategy. The company has a
presence in diverse segments of the financial market by way of its subsidiaries.
In the present scenario the service industry has given utmost importance of doing
a particular task at a faster time in order to satisfy the customers and to attract new
customers. The main reason of establishing a depositary system is to lessen the work
and fast the processing. This system is overcoming the disadvantages of the physical
trading of the securities in the stock exchange.
ICICI Direct.com is a truly online share trading site, which means that from the
time you punch in a buy or sell trade on you computer to the final settlement in you
account, everything happens completely online. The 3-in-1 e-invest account integrates
your brokerage, bank and one or more depository accounts to make sure that you can
do the otherwise cumbersome share trading from your home or office, absolutely at any
time of the day. Specifically this study has been undertaken with the following
objectives:
Study of ICICI
Study of ICICIdirect.com
Study of the product offered by ICICIdirect.com
Study of demat service providers
Study of the organizational structure of ICICIdirect.com
SWOT analysis.
7
UNIT I INDUSTRY / COMPANY PROFILE
8
OVERVIEW
ICICI Bank (formerly Industrial Credit and Investment Corporation of India) is India’s
largest private sector bank and second largest overall. ICICI Bank has total assets of
about USD 5.6 Billion (end-Mar 2006), a network of over 950 (including 190 branches of
Sangli bank recently taken over by ICICI bank) branches and offices, and about 3500
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
specialized subsidiaries and affiliates in the area of investment banking, life and non-life
insurance, venture capital and asset management. ICICI Bank’s equity shares are listed
in India on stock exchanges at Kolkata and Varodara, the Stock Exchange, Mumbai and
the National Stock Exchange (NYSE). During the year 2005 ICICI Bank was involved as
a defendant in cases of alleged fraudulent tactics to sell its products.
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
9
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 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.
10
11
INDUSTRIAL CREDIT AND INVESTMENT CORPORATION OF INDIA LTD
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.
12
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.
With the growth of industries, the financial services sector has assumed great
momentum with unprecedented investment and employment potential. ICICI is no
exception to this global phenomenon. Beginning with a modest commercial banking,
the bank has embarked upon a wide range of banking, financial and insurance
services.
Being the first development bank registered under the Companies Act, 1956, the range
of services offered by the bank has expanded considerably. The following services
assume a significant portion of the bank’s activities:
Commercial Banking
Development Banking
Trading in Securities
Merchant Banking
Insurance
13
Mutual Funds
Foreign Exchange Dealings
The bank has made significant inroads into the retail banking sector, thereby, indicating
growth in business and exploitation of consumer potential integrated with the overall
policy objective of mobilization of savings into investments.
14
THE MOST COMPREHENSIVE ONLINE SHARE TRADING SITE
15
INDUSTRY PROFILE
The Indian middle class is large and growing; wages are low; many workers are well
educated and speak English; investors are optimistic and local stocks are up. Despite
political turmoil, the country presses on with economic reforms. The only cause of worry
that India could face is Infrastructural hassles.
Capital market reforms are a major constituent of the overall economic reforms in India.
A series of measures announced in Union Budgets beginning FY92 laid the road map
for the growth and resurgence of securities markets in India. These included -
• Improving the investment climate by allowing foreign institutional investors to
invest in equity and debt markets
• Expanding the product range offered by the stock exchanges
• Strengthening the role and scope of capital markets regulation
• Revival of commodities futures markets
• Allowing Indian companies to issues ADRs and GDRs in international exchanges
and enable them to raise resources through Euro Commercial Borrowings
• Divestment of government ownership in state owned companies and financial
institutions
• Tax reforms in the form of introduction of transaction tax that streamlined the tax
mobilization from securities markets operations and also facilitated investors, a
choice of tax options in the form of choosing either long term gains tax or short
term tax which ever they prefer and subscribe to
• Strengthening of institutional framework in primary and secondary markets
• Reform and restructuring of the state owned assets management companies
16
• Allowing Indian companies and individuals to invest abroad
• Allowing stronger banks to assume greater exposure in the securities markets
• Setting up a mechanism for promoting corporate bond trading in stock
exchanges etc.
Diverse Market
In tune with the global stock markets that began to recover from the second half of
2003; Indian stock markets too witnessed rapid growth. India’s two leading indices, the
most popular BSE Sensex, and the one most used by the markets the National Stock
Exchanges’ S&P CNX Nifty rose to record levels. Both primary and secondary market
activity experienced sharp surge. Much progress was made in further strengthening
and streamlining risk management, market regulation and supervision. A few aspects
of the major developments in the India’s stock markets are described below.
Indian Stock Market Overview: The Bombay Stock Exchange (BSE) and the National Stock Exchange of India Ltd
(NSE) are the two primary exchanges in India. In addition, there are 22 Regional Stock
Exchanges. However, the BSE and NSE have established themselves as the two
leading exchanges and account for about 80 per cent of the equity volume traded in
India. The NSE and BSE are equal in size in terms of daily traded volume. Most key
stocks are traded on both the exchanges and hence the investor could buy them on
either exchange.
The primary index of BSE is BSE Sensex comprising 30 stocks. NSE has the S&P NSE
50 Index (Nifty) which consists of fifty stocks. The BSE Sensex is the older and more
widely followed index. Both these indices are calculated on the basis of market
capitalization and contain the heavily traded shares from key sectors. The markets are
closed on Saturdays and Sundays.
17
Both the exchanges have switched over from the open outcry trading system to a fully
automated computerized mode of trading known as BOLT (BSE Online Trading) and
NEAT (National Exchange Automated Trading) System. It facilitates more efficient
processing, automatic order matching, faster execution of trades and transparency. The
key regulator governing Stock Exchanges, Brokers, Depositories, Depository
participants, Mutual Funds, FIIs and other participants in Indian secondary and primary
market is the Securities and Exchange Board of India (SEBI) Ltd.
Market Structure
Indian securities market is fairly large as compared to several other emerging markets.
There are 22 stock exchanges in the country, though the entire liquidity is shared
between the country’s two national level exchanges namely, the National Stock
Exchange of India and the Bobay Stock Exchange Ltd. The regional stock exchanges
are in pursuit of business models that make them viable and vibrant. Meanwhile, these
exchanges have become members of the national level exchanges through formation
of subsidiaries whose business is showing continuous growth and progress.
The number of brokers in various stock exchanges rose from 6,711 in 1994-95 to 9,335
in FY06. The number of brokers in all the exchanges together peaked to 10,213 in the
year FY01 but gradually declined thereafter when the regional stock exchanges began
to lose business in the light of wide ranging market structure reforms introduced since
then. In FY01, when the markets were in upswing, several regional stock exchanges
were generating business owing to the availability of deferral products, such Badla and
different settlement calendars prevailing at that time in these exchanges. For instance
in FY01, the Delhi Stock Exchange registered cash market turnover of Rs 838.71
Billion; Uttar Pradesh Stock Exchange, Rs 247.47 Billion, Ludhiana Stock Exchange
Rs 97.32 Billion,
18
Pune Stock Exchange Rs 61.71 Billion as against Rs 13,395.11 Billion of the turnover
at the National Stock Exchange and Rs 10,000.32 Billion turnover at the Bombay Stock
Exchange. With the abolition of the deferral products and introduction of uniform T+2
settlement cycle, the liquidity in these exchanges flowed to the national level system
consisting of NSE and BSE..
Indian Stock Markets: Growth of Market Structure (In Number)
19
Source: Data culled from various stock market reports
Working of a stock market:
A person desirous of buying/selling shares in the market has to first place his order with
a broker. When the buy order of the shares is communicated to the broker he routes the
order through his system to the exchange. The order stays in the queue exchange's
systems and gets executed when the order logs on to the system within buy limit that
has been specified. The shares purchased will be sent to the purchaser by the broker
either in physical or demat format.
Emergence of ICICIdirect.com:
Due to the existing financial market scenario and the ever increasing use of computers
and its tools most predominantly the internet, ICICI in 2000 appointed Mckinsey to study
the market potential for an online portal dealing in trading with securities. Mckinsey in its
report stated the market potential to consist at around Twenty Five thousand people
only. But regardless of this fact, ICICI DIRECT.COM was started and now it has grown
to more than Four lakh Fifty thousand customers.
20
UNIT II ORGANIZATION STRUCTURE
21
ORGANIZATION STRUCTURE
ICICI Bank believes that the structure of an organization needs to be dynamic,
constantly evolving and responsive to changes both in the external and internal
environments. The organizational structure is designed to support our business goals,
and is flexible while at the same time ensuring effective control and supervision and
consistency in standards across business groups. The organizational structure is
divided into five principal groups. Retail Banking, Wholesale Banking, Project Finance,
Special Assets Management, International Business and Corporate Centre.
The Retail Banking Group comprises ICICI Bank's retail assets business including
various retail credit products, retail liabilities (including our own deposit accounts as well
as distribution of third part liability products) and rural micro-banking.
The Wholesale Banking Group comprises ICICI Bank's corporate banking business
including credit products and banking services, with separate dedicated groups for large
corporates. Government and public sector entities and emerging corporates. Treasury,
structured finance and credit portfolio management also form part of this group.
The Project Finance Group comprises our project finance operations for infrastructure,
oil and gas, manufacturing and shipping sectors. The Special Assets Management
Group is responsible for large non-performing loans and accounts under watch.
The International Business Group is responsible for ICICI Bank's international
operations as well as coordinating the international strategies and alliances of its
subsidiaries and affiliates.
22
The Corporate Centre comprises all shared services and corporate functions, including
finance and secretarial, investor relations, risk management, legal, human resources
and corporate branding and communications.
Organizational Structure of Karnataka Region:
The organization structure at ICICIdirect.com is lateral in nature. It is headquartered at Mumbai
from where the top most hierarchy operates. As ICICI is spread all over India the second level
hierarchy consists of a regional product manager.
23
ORGANISATIONAL CHART
24
Sales consists of two products E-Invest and Wise Invest. For both these products
there are product coordinators.
Sales of both these products are regionally looked after by Mr. Madhusudhan,
Regional Product manager for South India.
These products are divided into four categories:-
Corporate Retail
Exhibitions/ stalls
HNI handled by
Cross sellings
Under these category heads, a team of segment managers. Work at regional
level to achieve the purposes set out by them. They also have to report to the
Regional Product manager.
The bank usually has many branches to look after which Unit managers along
with trainees/agents are appointed who report to the Segment managers and the
Regional product manager.
25
UNIT III PRODUCT PORTFOLIO
26
THE PRODUCTS
1. E-Invest Account
--Online Share Trading A/c
2. WISE Invest Account
--Online Investment A/c
27
Products available on E-Invest
28
DEMAT
ICICI Bank Demat Services boasts of an ever-growing customer base of over 5 Lakh
Account Holders. In its continuous endeavor to offer best of the class services to its
customers it offers the following features:
Online access to the customers demat account. Checks holdings, and status of
requests and much more.
Dedicated specially trained customer care executives at its call centre, to handle
all queries.
Holding and Transaction details available round the clock on IVR (Interactive
Voice Response) system.
With a countrywide network of over 614 branches, one is never far from an ICICI
Bank Demat Services outlet.
Customers can also avail online share trading services from ICICIdirect.com and
get a 3 in 1 account inclusive of a demat, ICICI bank account and a online trading
account.
EQUITY:
Trading shares - The past
Calling broker
Waiting for pick-up
Placing orders
Placing wrong orders
Waiting for order confirmation
Waiting for contract notes
29
Writing cheques/ TIFDs for pay-in
Chasing broker for monies/ shares after payout
Trading shares - ICICIdirect.com way
Integrated 3-in-1 account removes all hassles after placing order. Monies/Shares get
debited/ credited automatically on paying/payout days.
Go to website- available anytime
Place orders- even after market hours
Get order status anytime- even modify/cancel orders anytime if order lies
unexecuted.
No writing cheques/TIFDs. No chasing broker.
Get contract notes online.
More about 3-in-1 account
This account integrates your bank, demat and broking accounts. If you
purchase/sell shares, the funds are automatically debited/ credited from/to your
bank account and shares are automatically credited/debited to/from your demat
account respectively on the settlement date.
This therefore completely eliminates the hassles of writing cheques/TIFDs or
chasing brokers etc.
And brings CONVENIENCE to your share trading.
Products and Services
A product for every need, ICICIdirect.com is the most comprehensive website, which
allows you to invest in shares, mutual funds and other financial products. Simply put we
offer you.re a product for every investment need of yours.
30
1. Trading in shares:
ICICIdirect.com offers you various options while trading in Shares.
Cash Trading This is a delivery based trading system, which is generally done
with the intention of taking delivery of shares or monies. A cash
position is meant to be settled by delivery, the required cash or
securities are blocked in full.
Margin Trading You can also do an intra-settlement trading upto 4 times your
available funds, wherein you take long buy/short sell positions
within the same settlement cycle.
Spot Trading When you are looking at an immediate liquidly option, ‘Cash on
Spot’ may work the best for you, On selling shares through “cash
on spot”, money is credited to your bank a/c the same evening
and not on the exchange payout date. This money can then be
withdrawn from any of ICICI Bank ATM’s
BTST Buy Today Sell Tomorrow (BTST) is a facility that allows you to
sell shares even one day after the buy order date, without you
having to wait for the receipt of shares into your demat account.
Call N Trade Call N Trade allows you to call on a local number in your city and
trade on the telephone through our Customer Service Executive.
This facility is currently available in over 11 major states across
India.
Trading on Through ICICI direct. com, you can trade on NSE as
NSE/BSE well as BSE.
31
Market Order You could trade by placing market orders during market hours
that allows your to trade at the best obtainable price in the market
at the time of execution of the order
Limit Order Allows you to place a buy/sell order at a price defined by you, the
execution can happen at a price more favourable than the price,
which is defined by you, limit orders can be placed you during
holidays and non market hours too.
32
What’s so unique about ICICIdirect.com?
Convenience: A unique 3-in-1 account integrates your banking, broking and demat accounts.
.
Speed: You can now get the latest quotes of scrip.s on ICICIdirect.com and place an order
almost instantly.
Control: You can be assured that you have in fact placed an order at the price you always
wanted to, but may not have been able to do so till now. Thereby giving you control over
your own trades.
Independence: Instead of transferring monies to a broker's pool or towards deposits, you can manage
your own demat and bank accounts when you trade through ICICIdirect.com.
Trust: ICICIdirect.com comes to you from ICICI, the organization trusted by millions of Indians.
33
Host of content features
Keep yourself updated
Weekly & monthly stock movers
News from CNBC and Reuters
Screen stocks
View P&L, financial ratio, background and balance sheet of over 5000 companies
with our corporate info bank.
My research - a step-by-step guide to help you research a stock.
Latest NAV for mutual funds
Portfolio tracker to monitor the gains and losses on your investments.
ICICIdirect University to guide you through concepts and on how to trade.
Value added services
Regular communicating
Ideal MF portfolios,
Ideal asset allocation,
Start and end dates for IPO.s and bonds,
Invitation to sessions on Investments / Mutual funds etc.
34
WHY PEOPLE PREFER ICICI BANK FOR ONLINE
SHARE TRADING:
ICICI DIRECT E-INVEST ACCOUNT
BECOMING A CUSTOMER
EXISTING BANK CUSTOMERS
BANK ACCOUNT / DEMAT ACCOUNT
NEW ICICI E-INVEST CUSTOMERS
ONLINE INVESTING
SETTLEMENT OF TRADE
MARGIN PRODUCT
CASH ON SPOT
BUY TODAY SELL TOMMAROW (BTST)
TRADING IN DERIVATIVES (FUTURES&OPTIONS)
DIGITALLY SIGNED CONTRACT NOTE
CORPORATE BENEFITS
NON PARI PASSU (NPP) SHARES
MUTUAL FUNDS FAQ
RESEARCH AND OTHER RESOURCES
PASSWORD
SECURITY
ACCESSING BANK ACCOUNTAND SETTING LIMITS
ACCESS TO WEB SITE
RETAIL DEBT
35
C2T AND ITS BENEFITS
C2T: CONVERSION TO TRADING- A GLIMPSE
A new version of after sales service that has a dual benefit to both bank and the
customers. C2T is an approach in ICICI Bank, through which the already existing
customers who are not trading or who have not at all activated or logged in their I-Direct
A/c over a period, say 3 to 6 months are tried to be converted into regular traders
through this process or approach.
In this process, the feedback of the existing customers- those who have not been traded
yet or who have not been trading for a considerable period of time is found out or
unearthed form the Database of the customers, with the help of computers and other
tracking systems. Thus a list of such customers is generated periodically and is
distributed to some of the bank branches in various regions to convert them into traders.
BENEFITS OF C2T:
Enables both customers and Bank to benefit form the process.
All the problems & doubts of the customer can be solved and help him in using
the product fully.
Good Customer Relationship is established.
Helps bank in getting more brokerage charges in future.
Improves the loyalty of the customer for the bank.
INVESTMENTS
36
ICICI Bank Bonds
GOI Bonds
Mutual Funds
IPO
GOI Savings Bonds
6.5% Savings Bonds (Non Taxable), 2003
Low risk.
Interest Income is Tax Free.
Nomination facility available
Cannot be traded.
No loan facility available (as per rule of GOI).
8% Savings Bonds (Taxable), 2003
Low risk.
Reasonable investment tenure.
Nomination facility available.
Cannot be traded in secondary market.
Interest income taxable.
No loan facility available (as per rule of GOI)
MUTUAL FUNDS INVESTMENTS THROUGH ICICI BANK
37
About Mutual Funds
Mutual Funds pool money of various investors to purchase a wide variety of securities
while pursuing a specific goal. Selection of Securities for the purpose is done by
specialists from the field. Returns generated are distributed to the Investors.
Mutual Fund Companies offer various schemes. Investors can choose any particular
Fund/Scheme or mix of Funds/Schemes depending upon their perception towards risk.
Investment is done on the basis of prevailing Net Asset Values of various schemes.
Mutual Funds Investments are subject to Market Risks.
Types of Funds Sold:
ICICI Bank helps customers to determine which types of funds they need to meet their
investment goals. This may include the following types of funds:
. Debt : Liquid schemes, Income schemes, G-sec schemes,
Monthly Income Schemes etc.
. Equity: Diversified Equity Schemes, Sector Schemes, Index
Schemes etc.
. Hybrid Funds: Balanced Schemes, Special Schemes - Pension
Schemes, Child education Schemes etc.
ICICI Bank helps customers to identify an appropriate mix of Mutual Fund schemes for
their portfolio using asset allocation strategies. Through ICICI Bank one can invest in
38
various schemes of multiple mutual funds with decent performance record. Customers
can take the aid of ICICI Bank's various research reports on mutual funds and their
schemes before choosing a scheme for investment.
ICICI Bank offers investment in Mutual Funds through Multiple Channels:
With ICICI Bank, you can invest in Mutual Funds through the following channels:
ICICI Bank Branches
ICICI Bank ATMs
ICICI Direct.Com
IPO
Invest in IPO's Online:
One can invest in IPO’s online through www.ICICIdirect.com with same convenience of
investing in equities - hassle-free and with zero paper work. Also, get in-depth analyses
of new IPO.s issues (Initial Public Offerings) which are about to hit the market. IPO
calendar, recent IPO listings, prospectus/offer documents and live prices will help
customers to keep on top of the IPO markets.
Products available on Wise Invest
39
WISE Invest Account
40
With ICICIdirect’s WISE Invest Account, one can invest in Mutual funds, Tax
saving bonds, GOI bonds, Insurance, IPOs conveniently at the click of a mouse.
You can now do away the hassles of filling up long forms, writing cheques,
waiting in long queues, following up with various brokers / agents etc.
All this and more at an account opening fee of just Rs 350.
Upgradation of the account to a share trading account can be done anytime in
future.
Products Offered under WISE Invest
MFs,
Tax saving bonds,
GOI bonds,
IPOs,
Insurance
FDs / RDs..all at the click of a button.
Why WISE Invest
41
Usual way of investing will entail
Continuous follow-up with broker.
Filling up long forms for MFs and IPO.s.
Contacting an insurance agent and writing cheques for insurance.
Visiting the bank and standing in queues for FDs & tax saving bonds. etc
This account will do away all these hassles. You can make all yourinvestments online
conveniently and track all past investments atany time of the day.
Value added services
We will be regularly communicating
Ideal MF portfolios.
Ideal asset allocation.
Start and end dates for IPO.s and bonds.
Invitation to sessions on Investments / Mutual funds etc.
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UNIT IV HUMAN RESOURCE OF ICICI BANK
HUMAN RESOURCE OF ICICI BANK:
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The Human Resources Department of the Bank is one of the most proactive HR
departments in the Indian Banking industry, having won
several industry awards for implementing proactive HR practices in the Banking
industry. The HR department provides the ideal foil to the
relentless business drive of the Retail and Wholesale Banking Groups and prides itself
on its role as a human relations change agent in the Bank. Areas of HR interest include
Employee Relations, Performance Management Systems, Recruitment and Placement,
Career Development and Training & Development. A dedicated team of professional
HR practitioners proactively anticipates environmental changes and plans appropriate
organizational interventions with a view to enhance employee satisfaction. Positions for
Post Graduates in HR/Personnel Management from premier institutes exist in the
Recruitment, Training and Performance Management departments.
WORK CULTURE AT ICICI BANK
It is a tech-savvy, non-hierarchical, work environment where early responsibility and
independent decision-making enable each employee to reach his/her potential. Coupled
with this is a strong performance management system that has built a meritocracy
where high performing-high potential individuals are duly rewarded.
SELECTION PROCESS
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In the continuous endeavor to improve the selection process for recruitment at all levels
in ICICI Bank, it has carried out an in-depth study of the competencies required to
succeed in ICICI Bank. As per our 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 Bank uses a set of 3 tools: -
1. A Mental Ability Tests (for candidates with 0-2 years of work
experience)
2. A Personality profiling system
3. A Personal Interview
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The Mental Ability Test gives ICICI Bank 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
appear for the interview, the results of which are integrated into ICICI Bank's interview
process.
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UNIT V VISION & GOALS AND SWOT
ANALYSIS
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The ICICI Bank Vision...
To be the preferred brand for total financial & banking solutions for corporates,
government sector & individuals.
VISION OF ICICI BANK
Directing strengths-
Channeling thoughts
Creating value
Zeroing in on a goal
Concentrating efforts for effect
Activating ideas into enterprise
Delivery beyond expectations
GOALS OF ICICI BANK
Mobilizing and structuring resources
Capitalizing on opportunities
Focusing on core competence
Creating group dynamics
Enhancing customer centricity
Value engineering
Delivering beyond expectations
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SWOT Analysis
STRENGTH:
1) BACKED BY A STRONG COMPANY AND BRAND NAME:
ICICI Bank is India's First Universal Bank, which offers the widest range of financial
products and services. It is also India’s largest private sector bank and has a nationwide
network of 950 branches.
2) PRODUCT AIMED AT CONVENIENCE:
ICICIdirect.com is the first company to offer 3 in 1 account. ICICIdirect.com is unique
innovative and distinguished product that reduces the hassles and offers wide
convenience to the customers.
3) EVER INCREASING USAGE:
ICICIdirect.com has a growing customer base of more than 6 million and is rapidly
adding more due to increased use of internet and more and more investors entering the
stock market.
4) AUTOMATIC TRADING :
ICICIdirect.com has a feature where in at a previously determined price fed to the
computer results in buy/sell of the desired security automatically without any manual
presence.
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WEAKNESS:
1) USUALLY HIGH BROKERAGE RATES
The brokerage charged by the company, especially on the delivery transactions is very
high in comparison to the competitors. Company is charging .75% brokerage on
delivery calls which is very high in comparison with other stock broking firm.
2) CUSTOMER SERVICE
The customer service department is not efficient to handle the grievances of the retail
customers. Also there is no such relationship manager for retail customer to handle the
problems faced by them.
3) ACCOUNT OPENING TIME
The time taken for opening the account is too much in comparison with other
companies. Customer often complain of delays in receiving accounts details or login
and passwords.
4) ICICI DIRECT SIGN UP PROCESS IS SLOW
The trouble begins with the initial sign up itself. The process of signing up and opening
an account with ICICI Direct sometimes takes as long as three weeks. This is much
longer than other online brokerage services like Indiabulls, Sharekhan and Kotak
securities.
5) ICICI DOESN'T GIVE HARD COPY BILLS
In what may be a flouting of SEBI guidelines where every broker is expected to provide
bills to their customers, ICICI refuses to provide hard copy bills. Digital contract notes
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are mailed in hard copy when they're issued. They can also be requested for later.
However bills for settlements are only available in soft copy.
6) ICICI CALL CENTERS
Calling up an ICICI call center is the test of patience. There is a lot of 'Press 1 for this
press 2 for this before any answer. When you reach the wrong person, he'll offer to
transfer you back to the main menu unless you insist on being transferred to the right
person.
ICICI call center employees are generally given a list of expected questions and
answers they can give. Any question that doesn't fit the cubby hole, leaves them
confused.
7) ICICI WEB TRADE IS FULL OF ERRORS
ICICI web trade has so many errors that it feels like a software someone wrote at home.
It's amateurish and full of Java errors. Pictures speak larger than words. So here are
some screen captures that will show you how pathetic ICICI Direct really is. Click on the
links to see the screen captures.
1) Error on trying to view a bill
2) Error on trying to see a billing summary statement
3) Error on trying to make a transaction query.
4) Software error when trying to view a bill.
8) ICICI Direct is very slow
ICICI Direct web site is very slow especially during market hours and users complain
that the research and charting section simply does not load during the market hours.
The service and quality have gone from bad to worse.
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OPPORTUNITIES:
1) EVER INCREASING USERS OF INTERNET:
As per research India is adding millions of internet users every year. This provides a
huge opportunity to ICICIdirect.com to tap such users.
2) INCREASE IN THE NUMBER OF INVESTORS ENTERING THE STOCK MARKET:
Recently due to the surge in IPO.s and increased income of people in India has led to
more and more people taking interest in stock market which is a huge opportunity for
ICICIdirect.com.
3) TAX SAVINGS ONLINE:
ICICIdirect.com offers many products like Tax saving Bonds and Mutual funds. People
today are keen on saving tax and for the same they can invest in these products online.
Thus this brings in a huge potential market for ICICIdirect.com.
4) PROVIDING TRUE SERVICE:
ICICIdirect.com reduces paper work, reduces hassles like tracking the brokers and
following the investment along with this it assures safety and security. Thus
ICICIdirect.com is potentially one of the most revolutionary product which will find
increased usage in this modern world.
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THREATS:
1) FEAR OF SAFETY:
People in India are very avert to giving out their credit card numbers or buying and
selling shares. This mentality possesses a significant trend because ICICIdirect.com in
its essence is a portal for online trading in securities.
2) EMERGENCE OF OTHER PLAYERS:
New players like Reliance are about to enter the market which is a big threat for the
company. Reliance being substantially good company can definitely give tough
competition to ICICIdirect.com
3) FLUCTUATIONS IN THE SECURITY MARKET:
Stock market scams, increase in oil prices, terrorist attacks etc cause huge fluctuations
in securities market which dissuades investors who opt for liquidity or gold.
4) THREAT FROM LOCAL BROKERS :
Local brokers charged less brokerage as compare to ICICIdirect.com which can lead to
a shift in loyalty favoring the local brokers.
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UNIT VI RECOMMENDATIONS
54
RECOMMENDATIONS
1) EDUCATING THE CUSTOMERS:
Educating the customers that as interest rate on fixed deposits or mutual funds or postal
deposits are coming down, there is no difference between investing in share market and
in banks.
2) REDUCTION IN BROKERAGE AND ACCOUNT OPENING CHARGES:
ICICIdirect.com charges its customers higher brokerage charges than the local brokers
which sometime amounts to double the local brokerage charges. Therefore reduction in
brokerage charges has to be seriously looked into by ICICIdirect.com.
3) BE IN TOUCH WITH THE CUSTOMERS :
Addressing the customer queries and receiving constant feedback is a must because
ICICIdirect.com is an online portal and there is very less exchange of communication
between the customers and the principal.
4) PROCESSING TIME:
It was noted that during the recent IPO.s other players like Karvy opened demat
accounts in one day where as the minimum required time for ICICIdirect.com was four
days. This led to the loss of many customers.
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SELECT BIBLIOGRAPHY
WEBSITES:
www.ICICIdirect.com
www.ICICIbank.com
www.google.com
www.dhrm.org
MAGAZINES AND BOOKS REFERRED:
India Today
Business World
Journal of RM Review
Executive Excellence
Business Today
Organization Behavior – Stephen Robbins
Human Resource Management – Gary Dressler
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PART- B
A MICROSCOPIC STUDY ON TRAINING AT ICICI DIRECT
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TRAINING
Training cannot be 'one size fits all'. In the current climate of downsizing and rightsizing,
organizations must focus on specific Training needs and available re-sources. This
study highlights on Human Resource project that demonstrates how Training programs
that fit needs and resources have been designed, developed, and implemented in ICICI
Direct.
Employee training programs provide focused training to a number of employees either
on a one-time or recurring basis. Programs can be developed in-house or employees
can attend more generic programs, e.g., at a local university, college or training center.
Programs are conducted for a variety of topics, e.g., training about communications,
computer skills, customer service, quality initiatives, diversity training, etc.
What is Training Within an Organization?
The Training within Organization method is a technique that can be used for the
development of agent skills. An agent is anyone who does the sale of various products.
Training is based on the idea that supervision is the key role to assure that sales target
is reached smoothly with which the quality sales are made and development of the
customer relationship and satisfaction.
Training in ICICI direct leads to good agents who have generally have five needs:
1. Knowledge of the Work. The information that distinguishes one company
from another. For example: Investments in Mutual funds, Shares, Bonds, etc.
2. Knowledge of Responsibilities. The company's situation regarding:
policies, agreements, regulations, rules, and interdepartmental relationships.
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3. Skill in Instructing. Even if we have a lot of knowledge and skill about the
work, we cannot teach them well if we don't have skills in instruction.
4. Skill in Improving Methods. This deals with utilizing human resource in
an effective way. Agents must study each operation in order to eliminate,
combine, rearrange and simplify details of the job. In this manner Agents can
make the best use of the available resources like knowledge, soft skills etc.
5. Skill in Leading. This helps Agents to improve their ability in working with
people, and causes other agents to cooperate with them at work.
When these five needs are met, Agents can deal with problems. Such as: mistakes,
defects, rework, work delays, variation in performing work, etc.
The Knowledge of the Work and the Knowledge of Responsibilities are different at each
company and Agents must gain this knowledge locally, at their organization. Agents are
not born with the three Skills of Instructing, Improving Methods and Leading but these
skills can be acquired from actual practice. Three courses were developed to help
Agents develop these skills: Job Instruction (JI), Job Methods (JM) and Job Relations (JR). Each will be trained and updated them with various products on every
Friday and Saturday. Each agent was required to apply the method to a current, real
situation or problem from the workplace. In other words, Training was a learn-by-doing
approach.
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ORIGIN OF THE TRAINING WITHIN ORGANISATION CONCEPT During World War II, the organization Training Within Organization (TRAINING) (War
Manpower Commission, US Government) developed programs to help Organization
cope with the flood of new and unskilled war workers. Guided by representatives of the
new profession of personnel management, and assisted by university-based social
scientists, the organization developed innovative methods of industrial Training that
drew on both the scientific management tradition and the newer human relations
approach fostered by the Hawthorne experiments.
After WWII, TRAINING was exported around the world to help nations rebuild their
Organization. It was particularly well received in Japan where it became a national
program under the Ministry of Labor and has been continued until the present. Toyota
adopted TRAINING. Over the years it has become the foundation of standard work,
continuous improvement and employee involvement.
USAGE OF TRAINING WITHIN ORGANISATION AND APPLICATIONS Job Training, work design and improvement by people who perform the work, gaining
involvement of people through creating a collaborative and equitable workplace.
STEPS IN THE TRAINING WITHIN ORGANISATION PROCESS
• Job Instruction. 1: Prepare the Worker. 2: Present the Operation. 3: Try
Out Performance. 4: Follow Up.
• Job Methods. 1: Break Down the Job. 2: Question Every Detail. 3:
Develop the New Method. 4: Apply the New Method.
• Job Relations. 1: Get the Facts. 2: Weigh and Decide. 3: Take Action. 4:
Check Results.
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STRENGTHS OF TRAINING WITHIN ORGANISATION AND ITS BENEFITS
• The four step method of each program is simple, straightforward and easy
to implement.
• If Agents use a sure and reliable method of job Training, this assures that
work is standardized and is being followed.
• This creates basic stability in the operations because there is a predictable
outcome for each job.
• When Agents break down and study all the details of jobs, this enables
them to eliminate waste and make the best use of the materials, machines and
people that are available.
• The emphasis is on using your brains, not your pocket book.
• By gaining people's cooperation, this creates a collaborative environment
instead of a hostile environment on the Work place.
• Greater sales target and competitive advantage can be achieved when
people are contributing the creativity of their minds.
ASSUMPTIONS OF THE TRAINING WITHIN ORGANISATION THEORY • Agents are the key role to achieve and maintain basic stability in the work
environment.
• It is part of everyone's job to continuously improve.
• People and their intellectual capabilities are a competitive advantage.
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TYPES OF TRAINING
Training methods or types of training can be classified into two groups
i. On-the-job training
ii. Off-the-job training
On-the-job methods refer to methods that are applied in the workplace, while the
employee is actually working. Off-the-job methods are used away from the workplaces.
On-the-job Training
Majority of industrial training is of the on the job training type. OJT is conducted at the
work site and in the context of the job. Often, it is informal, as when an experienced
worker shows a trainee how to perform the job tasks.
OJT has advantages it is the most effective method as the trainee learns by experience,
making him or her highly competent. Further, the method is least expensive since no
formal training is organized. The trainee is highly motivated to learn since he or she is
aware of the fact that his or her success on the job depends on the training received.
Finally, the training is free from an artificial situation of a classroom. This contributes to
the effectiveness of the program.
Programmed Instruction (PI)
This is a method where training is offered without the intervention of a trainer.
Information is provided to the trainee in blocks, either in a book form of a teaching
machine. After reading each block of material, the learner must answer a question
about it. Feedback in the form of correct answers is provided after each response. Thus,
programmed instruction involves:
i. Presenting questions, facts, or problems to the learner.
ii. Allowing the person to respond.
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iii. Providing feedback on the accuracy of his or her answers
iv. If the answers are correct, the learner proceeds to the next
block. If not, he or she repeats the same.
The main advantage of PI is that it is self-paced – trainees can progress through the
programmers at their own speed. Strong motivation is provided to the learner to repeat
learning. Material is also structured and selfcontained, offering much scope for practice.
Computer-Assisted Instructions (CAI)
This is an extension of the PI method. The speed, memory and data manipulation
capabilities of the computer permit greater utilization of basic PI concept. CAI is an
improved system when compared to the PI method, in at least three respects. First, CAI
provides for accountability as tests are taken on the computer so that the management
can monitor each trainee’s progress and needs. Second, a CAI training program can
also be modified easily to reflect technological innovations in the equipment for which
the employee is being trained. Third, this training also tends to be more flexible in that
trainees can usually use the computer almost any time they want, and thus get training
when they refer. Not to be ignored is the fact that feedback from CAI is as rich and
colorful as modern electronic games, complete with audio instructions and visual
displays.
Simulation
A simulator is any kind of equipment or technique that duplicates as nearly as possible
the actual conditions encountered on the job. Simulation then, is an attempt to create a
realistic decision-making environment for the trainee. Simulations present likely problem
situations and decision alternatives to the trainee. For example, activities of an
organization may be simulated and the trainee may be asked to make a decision in
support to those activities. The results of those decisions are reported back to the
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trainee with an explanation of what would have happened had they actually been made
in the workplace. The trainee learns from this feedback and improves his/her
subsequent simulation and workplace decisions.
Role Playing
Role Playing generally focuses on emotional issues rather than actual ones. The
essence of role-playing is to create a realistic situation, as in a case study, and then
have the trainees assume the parts of specific personalities in the situation. For
example, a male worker may assume the role of a female supervisor, and the
supervisor may assume the role of a male worker. Then, both may be given a typical
work situation and asked to respond as they expect others to do. The consequences
are a better understanding among individuals. Role-playing helps promote interpersonal
relations. Attitude change is another result of role-playing.
Vestibule Training
Vestibule Training utilizes equipment, which closely resemble the actual ones used on
the job. However, training takes place away from the work environment. A special area
or a room is set aside from the main production area and is equipped with furnishing
similar to those found in the actual production area. The trainee is then permitted to
learn under simulated conditions, without disrupting ongoing operations. A primary
advantage of vestibule training is that it relieves the employee from the pressure of
having to produce while learning. The emphasis is on learning skills required by the job.
Sensitivity Training
It uses small numbers of trainees, usually fewer that 12 in a group. They meet with a
passive trainer and gain insight into their own and others’ behavior. Meetings have no
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agenda, are held away from workplaces, and questions deal with the ‘here and now’ of
the group process. Discussions focus on ‘why participants behave as they do, how they
perceive one another, and the feelings and emotions generated in the interaction
process. The objectives of sensitivity training are to
provide the participants with increased awareness of their own behavior and how others
perceive them – greater sensitivity to the behavior of others, and increased
understanding of group’s processes. Specific results sought include increased ability to
empathize with others, improved listening skills, greater openness, increased tolerance
of individual differences and increased conflict resolution skills.
BASIC RECOMMENDATIONS FOR EVALUATING TRAINING
Typically, evaluators look for validity, accuracy and reliability in their evaluations.
However, these goals may require more time, people and money than the organization
has. Evaluators are also looking for evaluation approaches that are practical and
relevant.
Training and development activities can be evaluated before, during and after the
activities. Consider the following very basic suggestions:
BEFORE THE IMPLEMENTATION PHASE
• Will the selected training and development methods really result in the
employee's learning the knowledge and skills needed to perform the task or carry
out the role? Have other employee's used the methods and been successful?
• Consider applying the methods to a highly skilled employee. Ask the employee of
their impressions of the methods.
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• Do the methods conform to the employee's preferences and learning styles?
Have the employee briefly review the methods, e.g., documentation, overheads,
etc. Does the employee experience any difficulties understanding the methods?
DURING IMPLEMENTATION OF TRAINING
• Ask the employee how they're doing. Do they understand what's being said?
• Periodically conduct a analysis of job, e.g., have the employee explain the main
points of what was just described to him, e.g., in the lecture.
• Is the employee enthusiastically taking part in the activities? Is he or she coming
late and leaving early namely behavior of the employee. It's surprising how often
learners will leave a course or workshop and immediately complain that it was a
complete waste of their time. Ask the employee to rate the activities from 1 to 5,
with 5 being the highest rating. If the employee gives a rating of anything less
than 5, have the employee describe what could be done to get a 5.
AFTER COMPLETION OF THE TRAINING
• Give him /her test before and after the training and development, and compare
the results?
• Interview him / her before and after, and compare results?
• Watch him / her performs the task or conducts the role?
• Assign an expert evaluator from inside or outside the organization to evaluate the
learner's knowledge and skills
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TRAINING IN ICICI DIRECT BRANCH
Training in ICICI Direct branch is basically given to the entry level executives / agents.
In ICICI Direct branch there are two entry level positions one is Agents in les
Department and the other is Back Office Trainees in the Operations Department. The
structure of the branch is as follows.
SALES DEPARTMENT
South Zone
Centre
Senior Sales Manager
Senior Sales Manager (Retail)
Sales Manager (Corporate)
Sales Manager (Retail)
Agents (Corporate)
Agents (Retail)
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OPERATIONS DEPARTMENT
Operations (Zonal Head)
Regional Operations
Branch Operations
Operations Incharge
Back Office Trainees (BOT’s)
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Training for Agents in Sales Department:
Induction- In induction program agents are welcomed to the organization. They are
made familiar with the company by providing information about the rules and regulation
of the company. Then they are guided with the policies and procedure of the company.
They are also familiarized with each and every department of the organization, their
operating heads and other employees.
They are also told about various facilities and amenities that they can avail in ICICI
Direct. Induction ends by collecting the personal documents of the agent like
educational certificate, medical certificate, pan card copy, photographs and address
proof to generate his agent code.
Product training- Next they are made familiar with various products that ICICI Direct is
offering to their clients.
• Mutual funds
• IPO’s
• GOI Savings and ICICI Bank Tax Saving Bonds
• Content Features
• Personal Finance
• Customer Service Features
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Schemes Training- ICICI Direct offers various schemes for different clients based on
certain criteria’s which are pre determined by the organization which are explained to
the agents thoroughly during this training. Scheme training is very essential for an
agent as it helps him the most during the sales process. Various schemes offered by
ICICI Direct are:-
S1- For those whose who are not related with ICICI.
S6I-For people who are employee of ICICI group.
S10- For employees of top 100 companies.
S11- For employees of IT companies and BPO’s.
S12- For people having ICICI salary account and are not covered under S16 and S17.
S13- For those who have ICICI product.
S16-For people who are having Super or Special Salary
S16A- For people who are having Super or Special Salary and are not having salary
account with ICICI Bank.
S17- For people who are having Normal Salary.
S17A- For people who are having Normal Salary and are not having salary account with
ICICI Bank.
These schemes differ on the basis of brokerage, their salary account, company they
work for and their relationship with ICICI.
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Soft Skills training-Agents are provided soft skills training to help them understand as
to how to interact with the customers. This training gives importance to the
communication skill and behavioral skills of the agent.
Documentation training- In this training agents are provided the list of documents that
should be collected from the customers so as to open their demat account. The list is as
follows:
• Identity proof
o Pan Card photocopy mandatory
o Voters ID and Driving License
• Address proof
o Ration card
o Passport
o Recent bank statement of last three months
o HR letter from the clients organization
• Photograph
• Bank Verification Letter (if required)
Form filling training- Here agents are guided about the Do’s and Dont’s of filling up a
form. This training is given to avoid over writing in the forms and minimize the rejection
rate of forms while sent for processing.
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Weekend training program- ICICI Direct provides training program twice a week i.e.
Friday and Saturday which helps the agents to update themselves with the latest offers
and schemes provided by the organization. Agents seniors take their weekly update and
provides them with some valuable feedback which would help them in their sales
activity.
Training for Executives in Operations Department:
Product and scheme training- BOT’s are given training with respect to various
products offered by ICICI Direct like Mutual funds, Equities, Derivatives, Bonds, IPO’s,
etc. Apart from this BOT’s are trained about various schemes rigorously from time to
time as and when they are upgraded and new schemes are introduced.
Info pool/ IT training- Info pool is the Information System of ICICI Direct. This system
uses ICIS (Idirect Customer Information System) is an software package used by ICICI
Direct to track the AOF’s (Account Opening Form) status centrally. ICIS is used to
maintain the data of customers AOF’s as the account opening process passes through
various stages which are carried out in various parts of the country which makes it
necessary to accesses the data related to customer by different users in different
locations. Hence info pool acts as central data pool for Idirect users.
In this training program BOT’s are familiarized with the various processes under ICIS
and trained to enter the data into the system without any errors.
Inwarding and Scrutiny training- BOT’s are trained to do inwarding and scrutinizing
the Account Opening Forms (AOF’s) from Sales Manager. Inwarding is a process of
collecting the AOF’s from the Sales manager and keying in the data into the ICIS.
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Scrutiny is a process of checking and verifying the AOF’s which are inwarded and then
taking the decision of accepting or rejecting the AOF’s. If accepted the applications are
send for further processing. If rejected the AOF’s are returned back to the concerned
sales manager for rectification.
In these two process trainings BOT’s are trained and tested to carry on the process with
minimum possible errors. There are various training programs conducted regularly to
update the BOT’s with the latest changes in the process and schemes and they are also
evaluated based on their performances.
Five-S training- Five-S is basically a self disciplinary training given to the BOT’s in
which they are trained to keep their documents and AOF’s systematically in their
workplace received from the Sales Managers. This process helps in saving time while
retrieving the required documents hence making the process very fast and also
improves the quality of work.
Customer Training (Investor Empowerment Program):
As part of Customer Empowerment Program ICICI Direct Arranges customer education
sessions every month to help the customer with different investment options.
Various trainings conducted under this program are:
Comprehensive Demo: Under this training the customer is given a comprehensive
training with respect to the various usage of ICICI Direct site to make their investments
hassle free. In this training customer is familiarized with the various products available
on ICICI Direct.com.
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Derivates: Under this training customer are familiarized with the basic concept of
Hedging, Speculation and Arbitrage using derivatives. This session will also cover a
comprehensive demo on how to trade in derivatives.
Investment Planning & Ideal Portfolio (IPIP): In this training customer are made to
understand why investment planning is critical to achieve their goals. They are told
suitable portfolio mix based on their risk behavior.
Handholding/Site Demonstration: In this training Customers are given live Site Demo
which helps to familiarize them with the site and enable them to ICICI Direct more
effectively to make investments. Trainers help them to learn about different products
available on the site from equities, derivatives, mutual funds, insurance and postal
savings. They are guided how to place orders in Cash, Margin, Margin Plus, BTST (Buy
Today Sell Tomorrow) and apply in IPO’s online.
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MAJOR FINDINGS AND RECOMMENDATIONS
FINDINGS
The study conducted on Training at ICICI Direct led to following major findings
POSITIVES:
Continuous Training Training at ICICI Direct is a continuous process. Agents and executives are provided
training right from the time of their induction till they are part of the organization. Experienced Trainers Training is provided by Senior Managers to their subordinates with respect to various
process and schemes this helps them to understand the practicality of the work.
Process Oriented Training Training is focused on various processes of different departments. This helps them to
specialize in the particular process in which they are suppose to work and evaluation is
done time to time to measure their performance. Department wise training The training is conducted according to the requirement of the different departments.
Likewise soft skill training for sales force and technical related training for operations
executives.
Customer Empowerment Training Training at ICICI Direct is also extended to customers to help them use ICICI
Direct.Com for trading effectively.
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Weekend Training Weekend training sessions are conducted for all agents and executives to brush up
their knowledge with respect to various new schemes and processes in the
organization.
NEGATIVES: No fixed schedule for training Even though the training at ICICI Direct is a continuous process but there is no fixed
schedule in place for training. Training is conducted ad-hoc as and when the sales and
operations team require it.
On Job training The major part of training at ICICI Direct is conducted on job which is leading to lot of
errors in the process and increasing rejection rates.
No Dedicated training team As major part of the training is provided by Senior Sales Managers to their subordinates
it is hindering Sales Managers performance. No Feedback No feedback is taken after the training is conducted by the sales Managers which is
making the training a one way process.
Lack of Proper information with New Agents Newly recruited agents are faced with problems like lack of proper information which
leads to lot of negative outcomes in their sales call and also leads to lot of errors in
documentation and form filling. This also gives wrong information to the customers.
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RECOMMENDATIONS
Proper Scheduling Of Training Though training is continuously conducted at ICICI Direct there is no proper scheduling
of training sessions, which is leading to increasing absenteeism of agents. Hence a pre
determined training schedule has to be put in place and the information should be
communicated to all the agents and executives.
Dedicated Training Team There should be a dedicated training team which takes care of all the training
requirements of the staff and Sales Managers should not be involved too much in the
training process and should be called upon only when his experience is required.
Feedback after Training should be taken A proper feedback and evaluation system should be put in place to improve the training
program as per the requirement of the trainees and organization.
More emphasis on training before job As major part of training at ICICI Direct is conducted on job, this is leading to lot of
errors in the process and increasing rejection rates. Hence more emphasis should be
given to thorough training before they are put on job live.
Weekend Training Though regular weekend trainings are scheduled, they are not being conducted
regularly. Weekend trainings should be taken more seriously by the agents and
executives and not as a mere information seminar for new schemes.
