INDUSTRY PROFILE

INDIAN BANKING SYSTEM

A HISTORICAL PERSPECTIVE The earliest banks in India can be traced to the three presidency banks (in Bengal, Mumbai and Channai) in the early 1980s. Subsequently with the emergency of several small banks in the country, the number of banks had gone 105 December by 1934. In 1921, the three-presidency banks were merged into the imperial bank of India, which, apart from usual commercial operations, also took over certain central banking functions. Since the reserve Bank of India was established as a full fledged central bank of country in 1935. The Imperial bank of India was nationalized and came to be known as the State Bank of India the establishment of the state bank of India was one of the significant steps taken by the government of India to control its expanding economy. The banking system witnessed a steady growth during the postindependence period and compact. However several deficiencies in their functioning were noticed, mainly in terms of geographical coverage and credit deployment. The network of branches of various banks covered only a limited segment of the population in major cities while the rural areas and semi urban areas were totally neglected. It
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was also noticed that substantial gaps in credit deployment existed in financing agriculture, small scale industry and self employed persons. Further, the ownership pattern of banks showed the concentration of economic power in few hands lending; it owns a merchant bank (Citicorp Merchant Bank Limited) and an investment bank (Salomon Smith Barney); it operates a private bank (Citigroup Private Bank); finally, its subsidiaries in tax havens offer offshore banking services to customers in other countries.

Banks are prone to crisis The traditional bank has an inherent tendency to crisis. This is because the bank borrows short terms and lends leveraged long term. The sum of deposits and the banks capital will never equal more than a modest percentage of the loans the bank has outstanding. Even if liquidity is not a concern, if there is no run on the bank, banks can simply choose a ban portfolio of loans, and lose more money than they have. The US Savings and Loan Crisis in the late 1980s and early 1990s is such an incident.

Role in the money supply A bank raises funds by attracting deposits, borrowing money in the inter-bank market, or issuing financial instruments in the money market or a securities market. The bank then lends out most of these
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funds to borrowers. However, it would not be prudent for a bank to lend out all of its balance sheet. It most keep a certain proportion of its funds in reserve so that it can repay depositors who withdraw their deposits. Bank reserves are typically kept in the form of a deposit with a central bank. This behavior is called fractional-reserve banking and it is a central issue of monetary policy. Some government (or their central banks) restrict the proportion of a banks balance sheet that can be lent out, and use this as a tool for controlling the money supply. Even where the reserve ratio is not controlled by the government, a minimum figure will still be set by regulatory authorities as part of banking supervision.

DEVELOPMENTS IN BANKING SYSTEM

SOCIAL CONTROL OF BANKS Indian banking structure has grown considerably in strength and stability due to the vigorous control and effective monitoring by reserve bank of India. However, Order to remove the deficiency pointed above, the Government introduced a scheme of social control of banks. According to the Banking Commission (1972), the social control scheme was introduced with the main objective of achieving a wider spread of bank credit flow to priority sectors and making it a more effective instrument of development. NATIONALISATION OF BANKS Despite of scheme of social control there was no significant reorientation of lending activities of banks towards meeting the requirements of priority sector like agriculture. This resulted in nationalization of 14 major commercial banks with individual deposits exceeding Rs.50 crores in July 1969. The major objective of nationalization were Reduction in concentration of economic power in hands of a few. Expansion of credit to priority areas, which were hitherto neglected like agriculture, small-scale industries and self, employed people.

 Elimination of the use of bank credit for speculative and unproductive purpose. To provide a professional bent to bank management and encourage upcoming entrepreneurs. At the time of nationalization, the 14 major banks had a paid up capital of Rs. 28.50 crores, deposits of Rs. 2626 crores, advances Rs. 1813 crores and 4134 branches. In other words the nationalized banks accounted for 80% of branches, 83% of deposits and 84% of advances of the whole banking system. The Banks nationalized in 1969 were :1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. Allahabad Bank Andhra Bank Bank of Baroda Bank of India Canara Bank Central Bank of India Dena Bank Indian Bank Indian Overseas Bank Punjab National Bank United Commercial Bank Union Bank of India Syndicate Bank Bank of Maharashtra

REGIONAL RURAL BANKS The RRBs were established with a view to combining the local feel and familiarity with rural problems. The RRBs are primarily sponsored by the commercial banks. The primary objectives of these banks are: Providing credit for agricultural purposes to small entrepreneurs engaged in trade and industry and other productive activities in rural areas. To cater the needs weaker sections of community.

SECOND NATIONALISATION In order to move effectively, meet the growing development needs of the economy and to promote welfare of people on the large scale six more commercial banks with demand and Time Liabilities (Deposits) with 200 cr were nationalized in April 1980. With the second nationalization, the number of public sector banks increased to 28 (1st nationalization 14 banks, 2nd nationalization 6 bank and SBI and its seven associate banks). Over the years with the directional change that has occurred in the banking system and the fact that the banks responding favorably by evolving new strategies and innovative ideas the credit structure of the country has become strong and steady. Recognizing the fact that the banks are vital catalytic agents of growth that provide the basic input of credit, new programmes with the social orientation have been designed with a view to assist the society. The names six banks nationalized were as under:
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1. Corporation Bank 2. Oriental Bank of Commerce 3. Punjab & Sind Bank 4. Vijaya Bank 5. Andhra Bank 6. New bank of India After the nationalization of major banks the position altered rapidly and the flow of credit to the rural areas increased considerably. Along with quantitative expansion of branch network, there were qualitative improvements in the lending practices of the banks. The phenomenal change in the lending practices a can be termed as a transformation from calss banking to mass banking. In fact the broader national objectives of eradication of poverty, unemployment and growth with social justice have shaped the formulation of various directives/ schemes.

CURRENT SCENARIO The Indian has finally worked up to the competitive dynamics of new Indian market and is addressing the relevant issues take on the multifarious challenges of globalization. Bank that employ IT solutions are perceived to be futuristic and proactive players capable of meeting the multifarious requirement of large customer base. Private Banks have been fact on the uptake and are reorienting their strategies using the Internet as a medium. The Indian banking has come from a long from being a sleepy business institution to a highly proactive and dynamic entity this transformation has been largely brought by the large dose of liberalization and economic reforms that allowed exploring new business opportunities rather than generating revenues form conventional streams. The Indian Industry has confidently hit the growth trial that pick in activity is best reflected in the banking sector which after all is as candid a mirror of a countrys economy as you could ever find. Most of the Indian financial intermediaries have been keeping pace with the deepening market economy, riding the opportunity that come along with reforms even as they brace themselves for increased competition both foreign and private by strengthening prudential norms and leveraging technology to ensure that growth engine hums smoothly along.

The essential function of a bank is to provide services related to the storing of value and the extending credit. The evolution of banking dates back to the earliest writing, and continues in the present where a bank is a financial institution that provides banking and other financial services. Currently the term bank is generally understood an institution that holds a banking license. Banking licenses are granted by financial supervision authorities and provide rights to conduct the most fundamental banking services such as accepting deposits and making loans. There are also financial institutions that provide certain banking services without meeting the legal definition of a bank, a so called non-bank. Banks are a subset of the financial services industry. The word bank is derived from the Italian banca, which is derived form German and means bench. The terms bankrupt and broke are similarly derived from banca rotta, which refers to an out of business bank, having its bench physically broken. Money lenders in Northern Italy originally did business in open areas, or big open rooms, with each lender working from his own bench or table. Typically, a bank generates profits from transaction fees on financial services or the interest spread on resources it holds in trust for clients while paying them interest on the asset.

Services typically offered by banks Although the type of services offered by a bank depends upon the type of bank and the county, services provided usually include: Directly take deposits from the general public and issue checking and saving accounts. Lend out money to companies and individuals (see money lender) Cash checks. Facilitate money transactions such as wire transfers and cashiers checks Issue credit cards, ATM, and debit cards and online banking. Storage of valuables, particularly in a safe deposit box.

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COMPANY PROFILE
ICICI BANK ORIGIN The development banking institution set up in the country, after industrial Finance Corporation (IFC); was the Industrial Credit Investment Corporation of India (ICICI). Its main objectives when it was started were: to encourage and assist industrial Investment in private sector to provide foreign currency loans to develop underwriting facilities in India, which was not taken up by IFC at that time In broad operational terms, the ICICI assist In the creation, expansion and modernization of private sector enterprises In encouraging and promoting participation of private capital, both internal and external, in the ownership of industrial investment through providing equity participation, underwriting

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TRANSFORMATION In the 1990s, ICICI transformed its business from a development financial institution offering only project finance to a diversified financial services group offering a wide variety of products and services, both directly and through a number of subsidiaries and affiliates like ICICI Bank. It was after liberalization in 1994 that the government also allowed private players in the banking industry ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution, and was its wholly-owned subsidiary, ICICI bank was incorporated in 1996 with its first branch in CHENNAI under schedule (II) commercial banks which has given it the right that every account holder of this bank can claim upto Rs.100000 from RBI if the bank goes into liquidation which is same in any nationalized bank.
ICICI Securities

ICICI Prudential Life Insurance Company

ICICI Bank Limited

ICICI Venture

ICICI Lombard General Insurance Company

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OVERVIEW OF BANK ICICI Bank is Indias second largest bank with total assets of about Rs.146, 214 crore at December 31, 2007 and profit after tax of Rs.1, 391 crore in the nine months ended December 31, 2004 (Rs.1, 637 crore in fiscal 2004). ICICI Bank has network of about 505 branches and extension counters and about 1,850 ATMs. ICICI Bank offers as 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 areas of investment banking, life and non-life insurance, venture capital and asset management. ICICI Bank set up its international banking group in fiscal 2002 to cater to the cross-border needs of clients and leverage on its domestic banking strengths to offer products internationally. ICICI Bank currently has subsidiaries in the United Kingdom and Canada, branches in Singapore and Bahrain and representative offices in the United States, China, United Arab Emirates and Bangladesh. ICICI Banks equity shares are listed in India on the stock Exchange, Mumbai and the National Stock Exchange of India Limited and its American Depositary receipts (ADRs) are listed on the New York Stock Exchange (NYSE). As required by the stock exchanges, ICICI Bank has formulated a code of Business Conduct and Ethics for its directors and employees. At October 31, 2007, ICICI Bank, with free float market capitalization* of about Rs.220.00 billion (U$ 5.00 billion) ranked third amongst all the companies listed on the Indian stock exchanges. ICICI Bank was
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originally promoted in 1994 by ICICI Limited, an Indian financial institution, and was its wholly-owned subsidiary. ICICIs 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 Banks 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 word Bank, the Government of India and representatives of Indian industry. The principal objective was to create a development financial institution for providing medium-term and long-term project financing to Indian businesses. In the 1990s, ICICI transformed its business from a development financial institution offering only project finance to a diversified financial services group offering a wide variety of products and services, both directly and through a number of subsidiaries and affiliates like ICICI Bank. In 1999, ICICI become the first Indian company and the first bank of 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 groups universal banking strategy. The merger would enhance value for ICICI shareholders through the merged entitys 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
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services.

The merger

would enhance

value for ICICI Bank

shareholders trough a large capital base and scale of operations, seamless access to ICICIs 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.

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Services offered by ICICI

1. SAVING ACCOUNT

Where the liquidity is concerned the most common and basic option offered by any bank savings account the ease with which one can access money from this account is unparalleled Customer deposit their personal cash to earn interest at the nominal rate of interest its a sort of safety vault taken by customer to keep their idle cash safely, lying with them BENEFITS THEY GET BY OPENING THIS ACCOUNT: Having a good relationship banks Security against their deposits Convenience in withdrawing their own money You can access your money via a debit card. When you make a payment on your DEBIT CARD it immediately gets deducted from your bank account Through automated teller machine you can freely access your bank account Cheque book facility permits you to transfer your fund The internet banking facility provides you easy and secure access to your account
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 Anywhere banking entitles you to deposit or withdraw cash upto prespecified limit across all the bank branches across the country You can provide standing instruction to your bank to automatically deduct your credit card payments from your account Deduction of tax at source is not applicable on interest earned The Reserve Bank of India mandates insurance of your savings account up to an amount Rs.100000 You need to maintain as low a Rs.5000 balance in a quarter or for 90 days i.e. average quarterly balance in the ICICI Bank Savings Account Savings Bank Account Interest Rate: - 3.50% FEATURES OF ICICI BANK SAVINGS ACCOUNT : Debit-cum-ATM card Auto Invest Account Internet Banking Phone Banking Anywhere Banking (Withdraw OR deposit up to Rs.50000 from any branch of ICICI BANK) Standing instructions Nomination facility 8 To 8 Banking facility Quantum optima (value added savings account) Free quarterly statements Bill payment facility Attractive interest rates Doorstep Service
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From ICICI Bank you can withdraw money from non-based branch as follows:Source ATM SELF CHEQUE 3rd PARTY CHEQUE PURCHASING TOTAL CHARGES: Not maintaining average quarterly balance Cheque bounces Rs.820 Rs.200 Amount 25000 50000 15000 25000 115000

Terms & conditions for Establishing Relationship and Operating Accounts: 1. Establishing a Relationship Applicant desiring to open a Relationship needs to have a Relationship form signed by the guardian. The guardian needs to declare therein that he/she has agreed to abide by the rules which are in force from time to time. Introduction is a pre-requisite for establishing a Relationship. The Bank may at its discretion consider valid an introduction by an existing relationship holder. Alternatively, a proof of identity for the guardian has to be furnished as under: Proof of Identity (attach copies provide original for verification) Passport or Letter form existing bank or
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PAN (Along with; self cheque drawn on existing Bank) OR Provide at lest one each from List A & List B along with guardians self cheque drawn on existing Bank List A (Proof of Name) Ration Card Employee ID card Driving License Salary Slip Voters ID card Income/wealth tax assessment order List B (Proof of Current Address) Electricity bill (Latest) Telephone bill (Latest) Copy of LIC Policy or latest premium receipt. NSC (Copy) Any latest Credit Card Statement Letter from employer giving current residential address 2. Operating Accounts Relationship can be opened in the names of 2.1 A minor under guardianship 2.2 The Bank will be sending through courier or post from time to time to the mailing address furnished by the applicant, statements of account, balance confirmation certificate, cheque books, various PIN mailers and such other items. Hence, it is incumbent upon the applicant(s) to intimate change in mailing address, if any,
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immediately without any loss of time. The bank will not be responsible for any loss, damage or consequences for wrong delivery of the above items arising out of non-intimation of change in mailing address. 2.3 A minimum deposit is prescribed for opening any account under a relationship. A minimum average balance during a quarter is also required to be maintained in savings accounts. Failure to maintain the prescribed average minimum balance will attract service charges of Rs.50 per month. Collection facility Cheques, drafts, bills, dividend / interest warrants and other instruments issued in favour of customers are accepted for collection on account holders behalf. Collection of outstation instruments entails collection charges. The Bank has the authority to debit the accounts to recover any amount credited erroneously. Local cheques, etc., may be tendered for collection sufficiently early in the day as required vis--vis the local clearing house timings.

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Closure of Account The Bank reserves the right to close Relationship or account(s), which according to the Bank, is/are not conducted satisfactorily, after due notice to the customers without assigning any reasons thereof. Saving Account Rules 1.1 Natural guardian (Father or widowed mother or court appointed Guardian) can open a savings account on behalf of a minor with moneys belonging to the natural guardian. In special cases the bank reserves the right to open savings Bank account on behalf of a minor by the mother. 1.2 1.3 Savings account cannot be opened for business purposes. Number of withdrawals in savings account is restricted to 150 per annum. Payment of Interest 3.1 Interest is paid on the minimum credit balance maintained between the 10th day and last day of each calendar month in saving accounts at the rate in force in accordance with RBI directives. Interest so calculated is rounded off to the nearest rupee, ignoring fractions of a rupee. Interest is paid every half year in September and March. 3.2 No interest is currently payable on the balance maintained in a current account in acceptance with RBI directives.

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SALARY ACCOUNT:

ICICI Bank Salary Account is a benefit-rich payroll account for Employers and Employees. As an organization, you can opt for our salary Accounts to enable easy disbursements of salaries and enjoy numerous other benefits too. With ICICI Bank Salary Accounts your employees will enjoy the convenience of: Having the largest network of ATMs at their command. Free 24 hour Phone Banking. Free internet Banking. All you would require to do is to send ICICI Bank an advice (in form a cheque/debit instruction, ecs, etc) for the total salary amount along with the salary details of the designated employees in a soft and hard copy format and we will credit the respective employees accounts as per your statement of advice. ICICI Bank Salary Accounts benefits you in more than one ways: Reduces your paperwork. Saves remittance costs. Employees receive instant credit of salaries. More convenient than ECS. Besides all of the above, employees will automatically become ICICI Bank account holders with special benefits and privileges of 8-8
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banking, Investment advisory and much moreICICI Bank also has a special offering: Defense Banking Services designed exclusively for the armed forces. Family shield insurance Ensures the security of your family through a personal accident Insurance policy For an yearly premium amount of Rs. 60/-, your child/family can be insured for an amount of Rs. 2 lac (In case of surface accidents) or Rs. 4 lac (In case of air accidents). Eligibility Resident Indian Female. Joint accounts with a woman as the first bolder are also eligible for the account
DOCUMENTATION

Tier I An introduction by an existing relationship holder is a prerequisite for establishing a relationship.

Or
Tier II Proof of identity: Passport or Letter from existing bank or PAN (along with self cheque drawn on existing bank)

Or
Tier III At least one each from list A and B (along with self cheque drawn on existing bank)

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YOUNG STARS ACCOUNT

Young Stars, cute companions will guide CHILDRENS through the world of banking through checking the account balance; fun zones land special pages on the internet. It makes banking a pleasure and of course teaches your child at to manage their personal finances. Once you are done with your banking, you can access your childs account with all the fun links to special zones designed to suit your childs area of interests and also impart knowledge on the current events of the world. You can even open a recurring deposit in your childs name. Features: Young Stars is a banking service for children, aged 1-18 years, brought to you by ICICI Bank to help the parents meet the present and; future; aspirations that they hold for their child. It offers various savings and investment options to the parent along with teaching the child to manage his/her personal finance in a more responsible and independent manner. SPECIAL OFFER: 1. 2. Savings Bank.
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Option of a Savings Bank account, Fixed Deposit 2. Minimum balance at Rs.500/- per quarter for

account or recurring Deposit account.

3.

A special Recurring Deposit account with additional

features as below: The parent would put forward; the desired amount to be earned at the of the tenure Based on the prevailing rate of interest, the bank staff would then back calculate the installments to be deposited now till maturity. Other RD type savings options that are possible for the parent include investing sums periodically and then receiving sums back from the bank periodically. The various RD options would be available through the Annuity to Annuity Product already developed by the bank. 4. 5. Free personalized chequebook. Free Domestic; Debit Card* for the child above the a. Daily withdrawals limits of Rs.1, 000/b. Daily spend limits of Rs.1, 000/c. Special privileges across all alliance partners outlets. 6. Funds. 7. Free Internet banking. a. Separate user ids and passwords for both parents and children b. Access to special zones and links to related websites for making Internet banking a memorable experience. 8. children.
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age of 10 years with features as below:

Facilities of invest in GOI relief Bonds and Mutual

Facility to transfer funds from parent account to kid

account to enable parents to inculcate savings habit amongst

9. child earn more. 10. needs.

Facility of setting up a sweep account from the

Young Stars accounts to the RD to enable the parents to let their Alliances with various partners to meet the childs

FIXED DEPOSITS:

ICICI Fixed Deposit allows your just that deposits can be opened for periods ranging from 15 days to 10 years. Other features include : Choice of two investment plans: Traditional Interest payable monthly, quarterly or half-yearly as per your convenience. Maturity period ranges from 15 days to 10 years. Reinvestment Interest is compounded quarterly and reinvested with principal amount. Maturity period ranges from 6 months 7 years.
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Minimum Balance You can avail of ICICI Bank Fixed Deposits form a minimum deposit of Rs. 10,000 and thereafter in multiples of just Rs. 1,000. Nomination Nomination facility is available for relationship in the names of individuals. Unless otherwise specifically, given in writing by depositors, nomination in deposit accounts will be at Customer ID level. Depositor(s) however has/have the right to specify different nominations at account level by completing appropriate forms. Further, the applicant(s) is/are at liberty to change the nominee, through declaration in the appropriate form to revise the nomination during the currency of the relationship accounts with the Bank. Easy Fixed Deposit Features Easy fixed Deposit is an ICICI Bank fixed deposit scheme having benefits of Debit - cum ATM Card (the Card) The depositors shall be provided with a Debit Card for transacting in fixed deposit. Transactions which are allowed are Part withdrawal of fixed deposit. Full withdrawal of fixed deposit. Generation of mini statement.

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The Card will be issued in the name of primary depositor. No separate card will be issued to joint applicant/s. Deposits can be made in two modes Easy Withdrawal Easy Loan A Customer has to opt for one of these at the time of opening the account. Tenure of deposits varies between 1 year and 10 years. All deposits under this Deposit Scheme will be cumulative (reinvestment) in nature. Nomination details are as in the case of normal Fixed Deposits. Easy withdrawal Under this option fixed deposit shall be linked to the debit card directly. The debit card can be used to withdraw money from the ATM, by breaking the FD, as and when required. If the deposits are prematurely withdrawn, the interest rate for the period for which deposit was with the ICICI Bank prevailing on date of deposit made, shall be payable. Easy Loan The depositors shall be provided with an overdraft facility against the Easy FD and can draw up to 85% of the Easy FD value. The interest rate on the overdraft will be 1% higher than the rate on the FD.

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 The depositor shall be required to execute all loan facility documentation as specified by ICICI Bank for these purposes. Cheque-book will be issued to deposit holder. Benefits A wide range of tenures, ranging from 15 days to 10 years, to suit your investment plan. Partial withdrawal is permitted in units of Rs. 1,000. The balance amount earns the original rate of interest. Safe custody of your fixed deposit receipts. Auto renewal is provided. Loan facility is available to the extent of 85% of principal and accrued interest. Choice of two investment plan: Traditional or Reinvestment. Fixed Deposit Eligibility Resident Indian. You can open a savings account with as little as Rs.10,000. This service is available at all our branches across the country. An introduction is a pre-requisite for establishing a relationship. Easy fixed deposit Eligibility The entities eligible for the Deposit Scheme are resident Indians and a deposit can be opened in the names of an individual a. In his or her individual capacity, or b. In individual capacity on joint basis, or c. In individual capacity on anyone or survivor basis, or d. On behalf of a minor as father/mother/legal guardian
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FIXED DEPOSIT

(General Category)

Domestic term Deposits (General Category): With effect from 10th June, 2002 Bank have revised the interest rates on term deposits as under: Maturity period Interest rates (percent per annum) w.e.f. 10th June, 2006 Single Deposit of Less than Rs. 15 lacs Rs 1 crore Rs 5 crore Rs. 15 lacs & but crore 3.75 4.00 4.75 6.00 6.25 7.50 7.75 above & less but crore 3.75 4.00 4.75 As 6.00 6.25 7.75 8.00 by time advised treasury above & above less

than Rs. 1 than Rs 5 7 days to 14 N.A. days 15 days to 3.25 45 days 46 days to 3.50 90 days 91 days to < 5.75 6 months 6 months to 6.25 <1 years 1 year to < 2 6.75 years 2 years to 7.00 <= 10 years

from time to

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Recurring deposit A small amount of money saved every month can grow to a large amount over a period of time No Tax deducted at source Can be used for your future expenses like your childs education, marriage, festivals, or just to buy that gold necklace you always wanted, by keeping aside a small fixed amount every month

Loans:
ICICI Bank offers wide variety of Loans Products to suit your requirements. Coupled with convenience of networked branches/ ATMs and facility of E-channels like Internet and Mobile Banking, ICICI Bank brings banking at customers doorstep. a) 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. b) Personal Loans: If customers wants personal loan that's easy to get with the help of ICICI Bank. ICICI Bank Personal Loans are easy to get and absolutely hassle free. With minimum documentation people can now secure a loan for an amount up to Rs. 15 lakhs. c) Car Loans: ICICI Bank is the No. 1 financier for car loans in the country. It has network of more than 2500 channel partners in over 1000
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locations. It has tie-ups with all leading automobile manufacturers to ensure the best deals. A number of flexible schemes & quick processing are available. Hassle-free application process is available on the click of a mouse. d) Commercial Vehicle Loans: 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, extend product, working capital loans & other banking products. e) Farm Equipment Loans: ICICI is the preferred financier for almost all leading tractor manufacturers in the country. There is flexible repayment options in tandem with the farmer's seasonal liquidity. They can choose from Monthly, Quarterly and Half-yearly repayment patterns. There are comfortable repayment tenures from 1 year to 9 years. f) Business Instalment Loans: Business Instalment Loan (BIL) by ICICI Bank helps the entities take giant strides by fulfilling their business requirements, be it working capital requirement, business expansion or to grab that once in a lifetime business opportunity. g) Two Wheeler Loans Customers can avail attractive schemes at competitive interest rates from the No 1 Financier for Two Wheeler Loans in the country. There is finance facility up to 90% of the On Road Cost
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of the vehicle, repayable in convenient repayment options and comfortable tenors from 6 months to 36 months. h) Office Equipment Loans: Technological empowerment is an important and critical factor for the growth of small and medium enterprises (SME). SMEs need to invest in sophisticated and state of the art office equipment to increase productivity and efficiency. Considering these varied requirements of our SME customers, the bank have created ICICI Bank's Office Equipment Financing product as a convenient and hassle-free way to procure the equipment they need. The simplified procedures and minimum documentation ensures fast and easy funds. Office equipment financing product features include: 1) Loan amount (minimum) is Rs 30000 onwards. 2) Loan to value (LTV) is up to 80% of invoice value. 3) Tenure of 12 to 36 months 4) Equipment to be hypothecated to ICICI Bank till the time loan is repaid. 5) Flexible repayment option through post dated cheques and auto debit mandate. 6) Door step service. 7) Competitive rates. Office Equipment Loans are available to: 1) Proprietors 2) Partnership Firms 3) Companies
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4) Trust & Societies ICICI provide loan for almost all office equipment including: IT products like personal computers, laptops, servers, switches.
o o

Copiers, scanners and multi functional devices. Printers (digital, low and high-end, wide format printers), plotters. Gensets, inverters, UPS. Colour labs. Air conditioners, plasmas, projectors, EPABX

o o o

I) Business Loans: Money, just when customer needs it As a growing entrepreneur, ICICI know how valuable time is for people. People are constantly thinking of growth and managing their business. At ICICI Bank, they think of the same when it comes to customers business. ICICIs Smart Business Loan is the easy access to money. Customers can get up to Rs. 25 lacks as an Overdraft or a Business Instalment Loan with no collaterals and faster turnaround time. j) Business Instalment Loan: Seize growth opportunities

Credit facility in the form of Term Loan / Business Instalment Loan Payment in the form of equated monthly instalments Repayment tenure of 12-36 months
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Plan and control your cash flows-Interest Rate (IBAR + Term Premia + 3.5%)* Processing Fees of 2.5%

Advantages:

Faster loan sanctions with minimum documentation One stop solution with a bouquet of products Attractive rate of interest Query resolution at local branches

Other benefits:

Facility to deposit cash in the current account** Online repayment facility** Availability of local cheques Flexibility to open accounts at local branches

Eligibility:

Income Tax Payee Good business track record Comfortable business vintage

CARDS:
ICICI Bank offers a variety of cards to suit different transactional needs of its customers. Its range includes Credit Cards, Debit Cards and Prepaid cards. These cards offer customers convenience for their
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financial transactions like cash withdrawal, shopping and travel. These cards are widely accepted both in India and abroad.

a)Credit Cards: Credit Cards give customers a smart way to shop, and offer them flexibility and convenience in managing their finances. ICICI Bank credit cards provide a host of exciting offers and benefits to the customers such as low interest rates, rewards programs, and a high credit and cash limit. The bank offer different types of credit cards to suit the different needs and requirements for added features b) Travel Cards: The travellers card is the Hassle Free way to Travel the world. Customers travelling with US Dollar, Euro, Pound Sterling or Swiss Francs; Looking for security and convenience; can opt for ICICI Bank Travel Card. It is issued in duplicate. It offers Pin based security and has the convenience of usage of Credit or Debit card.

DEMAT SERVICES:
Demat Services ICICI Bank Demat Services boasts of an ever-growing customer base of over 11.5 lacs account holders. In ICICIs continuous endeavour to offer best of the class services to the customers the bank offer the following features: e-Instructions: Customers can transfer securities 24 hours a day, 7 days a week through Internet & Interactive Voice Response (IVR) at a
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lower cost. Now with "Speak to transfer", customer can also transfer or pledge instructions through our customer care officer. Consolidation Demat Account: Customers can dematerialise the physical shares in various holding patterns and consolidate all such scattered holdings into the primary demat account at reduced cost. Digitally Signed Statement: Customers can receive the account statement and bill by email. Corporate Benefit Tracking: Customers can track the dividend, interest, bonus through the account statement. Mobile Request: Customers can access the demat account by sending SMS to enquire about Holdings, Transactions, Bill & ISIN details. Mobile Alerts: Customers can receive SMS alerts for all debits/credits as well as for any request which cannot be processed. 1) Dedicated customer care executives specially trained at the banks call centre, to handle all their queries. 2) Countrywide network of over 235 branches, customers are never far from an ICICI Bank Demat Services outlet.

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Mutual Funds:
A Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal. The money thus collected is then invested in capital market instruments such as shares, debentures and other securities. The income earned through these investments and the capital appreciation realised are shared by its unit holders in proportion to the number of units owned by them. Thus a Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified, professionally managed basket of securities at a relatively low cost. The flow chart below describes broadly the working of a mutual fund:

There are many entities involved and the diagram below illustrates the organisational set up of a mutual fund:

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Domestic 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. At ICICI Bank NRI services, they help the customers to determine which types of funds customers need to meet their investment goals. This may include the following types of funds: 1. Debt: Liquid schemes, Income schemes, G-sec schemes, Monthly Income Schemes etc. 2. Equity: Diversified Equity Schemes, Sector Schemes, Index Schemes etc. 3. Hybrid Funds: Balanced Schemes, Special Schemes - Pension Schemes, Child education Schemes etc. The wealth manager helps people to identify an appropriate mix of Mutual Fund schemes for their portfolio using asset allocation strategies. People can invest in various schemes of multiple mutual funds with decent performance record.
39

Advantages of Mutual Funds: The advantages of investing in a Mutual Fund are: Professional Management Diversification Convenient Administration Return Potential Low Costs Liquidity Transparency Flexibility Choice of schemes Tax benefits Well regulate

Other services:
Working Capital Finance: Managing finance is arguably the most important component of any business. Two key business needs are access to funds at reduced, more competitive rates and managing the balance sheet as effectively as possible. ICICI Bank has a team of experienced customer-focused relationship managers with wide sector experience who can offer customers working capital finance by way of cash credit/working capital demand loans suitably structured to their needs and their risk profile. Non fund based facilities such as bank guarantees and Letter of Credit are also offered at competitive rates. The bank also facilitates working capital

40

finance with other products such as trade finance, forex, derivatives and cash management. Transaction Banking The Bank delivers world class banking services to the financial sector clients. ICICIs current roaming accounts empower people with 'Anytime, Anywhere Banking'. They are designed for the customers convenience. The comprehensive collection and payment services span India's largest CMS network of over 4,500 branches. The bank provides correspondent banking tie-ups with foreign banks to assist them in their India-related businesses. Loan Syndication The bank ensures the participation of banks and financial institution for the syndication of loans. Some of the products syndicated are: Project Finance Corporate Term Loans Working Capital Loans Acquisition Finance, etc. Accounts for businesses, big and small The business needs and requirements are unique. This is why customers account should be unique too. ICICI Bank offers people a range of RCAs to meet varying banking requirements.

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Account Standard Classic Premium Gold Gold Plus Platinum

Quarterly Average Balance Requirement Rs.10,000 Rs.25,000 Rs.50,000 Rs.1,00,000 Rs.3,00,000 Rs.5,00,000

Anywhere cheque, national reaches: Issue a cheque from customers place of business. The suppliers can encash it at over 249 centres all over India. When the cheque is `local' everywhere, the business goes national! Bank anytime anywhere. Customers always had one bank branch. Now every ICICI Bank branch becomes peoples branch. Every branch manager is the personal manager. People can get personal attention wherever their business takes them.

Better cash flows. ICICI ask the customers to deposit the cheques at the nearest ICICI Bank Branch, and they will see to it that the cheque reflects in customers account fast. The bank helps customers money work harder for them. Banking on call.

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Banking has never been so convenient before. Now customers can use the phone to make Balance Enquiries, Request for a Cheque Book, Stop Payment and more. Corporate Internet Banking. Customers can do all the banking they want without getting up from their chair. With ICICI Bank's Internet Banking customers can access their account from wherever they are, by logging in to their account at www.icicibank.com. The customers can check their balance, pay their bills, transfer funds or even pay their taxes sitting at their desk. Card Power. For customers convenience, ICICI Bank's RCA comes with a powerful Debit/ATM card that allows the customers to deposit and withdraw cash at over 2000 ICICI Bank ATMs, plus over 10,000 VISA ATMs. The customers can also check their balance, view mini account statement, and transacts at various 90,000 merchant establishments across the country. Mobile Banking. Now the entire customers need to keep in touch with their account through their mobile. Sign up for alerts on daily balance, cheque clearing alerts or bounced cheque alerts! Card-to-Card Transfer Transfer funds for free from the customers existing ICICI Bank account to any Visa Card (debit or credit) in India. They can even pay their Visa credit card bill through this facility available on www.icicibank.com
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Free daily email statement Customers can get a daily email detailing your their ICICI Bank current account transactions and balance. Sub scribal to this service is free. Overdraft: Easy Access Money

Working capital as Overdraft facility Validity of 12 months Interest to be levied on the amount utilized Enjoy the flexibility to pay a minimum amount every month Interest Rate (IBAR + Cash Credit Premia + 2.75% ) Processing Fees of 2.5%

Letter of credit: The companies customers do business with undoubtedly have impeccable credentials. But why to take a chance. ICICI Banks Letter of Credit facility arms clients with a guarantee of payment, especially useful while transacting with companies who they have had limited exposure to in the past. A Letter of Credit is a letter from ICICI Bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. This guarantee of payment helps clients to transact with companies with whom they have had limited interaction and are unsure of their credit history. ICICI Bank offers two types of LCs, Sight and Usance LCs, both inland and foreign. The banks LCs get sanctioned and issued quickly, and are competitively priced.

44

A sight LC is a letter of credit that is payable immediately on presentation along with the necessary documents. A usance LC is a letter of credit that is payable after acceptance of presented documents and at a specified future date. An ICICI Bank Letter of Credit offers following:
o

A limit per client of up to Rs.1 crore (Limit for usance L/Rs.50 Lakhs). Period of up to 180 days Security requirement. 25%-35% cash margin. 100% collateral security in the form of residential. First charge on current assets. Assessment based on a parameterised model

o o o o o o

Bank Guarantee: Our Bank Guarantees are competitively priced with few requirements like cash margin and collateral security, and will be made available to customers in the shortest possible time. There is an upper limit of up to Rs.1 crore with a tenor of guarantee of up to 18 months, and security requirement of 25% cash margin and 100% collateral security in the form of residential property or liquid securities. ICICI Bank also issues Bank Guarantees in foreign currency on behalf of our exporters for approved purposes as defined under FEMA, subject to availability of credit limits or against 100% cash margin.

45

Resources:
The Bank also raises resources, from clients, for internal use by issuing a gamut of products, which run from Certificates of Deposit (CDs) to Term deposits to Term Loans. Financial Institution: ICICI Bank services the financial sector for the entire set of banking requirements and provides a complete range of solutions. The Financial Institutions and Syndication Group (FISG) are responsible for ICICI Bank's relationship with the financial sector. Under this umbrella, the Bank caters exclusively to the needs of: 1) Different domestic financial Institutions 2) Banks 3) Insurance Companies 4) Mutual Funds 5) Fund Accounting The FISG has built strong relationships through various interactive measures, like seminars, training programs, sharing of market information and views with clients, organizing the Bank CEOs' Forum, etc. Government Sector: The Bank aim to leverage their superior technology platform and on their ability to deliver solutions customized to meet the specific needs
46

of each client to emerge as the preferred banker for all government departments and government corporations. Services to the Government Sector: ICICI Bank acts as bankers to several government organisations. They have a wide range of services designed to serve the government sector. Their dedicated relationship managers have the requisite experience and training to look after their unique needs

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KEY FOR ICICI BANK

List A (proof of name) Ration Card Employee ID card Driving License

List B (proof of address) Electricity bill (the latest) Telephone bill (the latest) Copy of LIC policy or latest premium receipt Printed letter head with seal Latest credit card statement

Pan card Voters ID Card Income/wealth orders tax

assessment Letter from employer giving current residential address

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RESEARCH METHODOLOGY
1. TITLE OF STUDY
A study of Banking Services provided by ICICI

2. PROJECT DURATION
8 weeks

3. Objective of ICICI Bank:

Our objective of creating a universal bank providing end-to-end financial services, clearly required solutions which were based on new-generation technology, offered end-to-end functionality and were highly flexible and scalable. Finacle offered all this and much more. Chanda Kochhar Chief Executive Officer ICICI Bank Limited

To study of market share in banking sector of ICICI . To study the consumer satisfaction with ICICI. To know about the is the position of ICICI bank in market. To analyze the decision making process of the consumers. .

49

4. RESEARCH DESIGN: For collecting primary data from large groups of people through the question answer approach ir protocol process, survey method was used to engage a person to gather substantial amount of information from enough members of the target population so that the inductive logic and probabilistic inferences rather than deductive reasoning can be incorporated in understanding the relationship between desired market factors and phenomena under investigation.

5. SAMPLE SIZE AND METHOD OF SELECTING SAMPLE:

Our project guide, keeping in view the time consideration, determined the size of sample as 100. To serve the objective and study the scope banks we have designed two set of questionnaires. 1. The first questionnaire was developed to study the product offering and facilities of different banks so as to check the level of competition in the market for multinational banks. Nationalized banks NATIONALIZED BANKS PRIVATE BANKS MULTINATINATIONAL : : : Consisting of all the banks formed in accordance with 1969 Act. Consisting of ICICI, HDFC, UTI Banks compromising of standard charter bank, HSBC

For the comparison of various banks we have taken a sample size of 8 with non probability sampling The second quest was developed to check the level of satisfaction the people get from their savings account to know the factors they
50

consider important while selecting a bank to open an account with. And what facilities they require from their bankers or their grievances arising due to non fulfillment of their needs and what is their opinion regarding different categories of banks .

Process:
DATA COLLECTION APPROACH PRIMARY DATA SECONDARY APPROACH DATA THROUGH PRIMARY SOURCES The inquiry was done of the respondents through questionnaire in which the same set of questions were asked to the very respondents falling within out sample. The advantage is that it is simple to administer easy to tabulate and analyze. DATA THROUGH SECONDARY SOURCES The search was done on internet and related magazines, companys websites to extract relevant information. The other necessary information regarding ICICI Bank products and other bank products and offerings were obtained through printed sources such as Handouts, Pamphlets, Advertisements and circulars etc

FINDINGS
Findings are presented in an appropriate form such as TABLES GRAPHS 6.Scope of study

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In order to execute the training project, Jaipur was segmented on the basis MAIN MARKET AREA POSH RESIDETIAL AREA SEGMENTATION OF MARKET FOR SAVINGS ACCOUNT Geographical basis Demographical TARGET RESPONDENTS For questionnaire no. 1 (FOR BANKS) Major Private Sector Banks like HDFC,, and selected nationalized banks like SBI, BANK OF BARODA, and For questionnaire no. 2 (for individual respondents) Government executive and high profile businessman or professional and people from high profile.

7.LIMITATIONS:
A few foreign banks have been permitted to increase their number branches and its entry has taken away some business of the existing banks. Stringent norms by RBI in any time in future can be a threat to private banks as their activities can be adversely affected

52

FACT AND FINDINGS

Some Of the respondents to choose the ICICI bank is because the bank is proving more ATM facility to the customers.

And many of the respondents are saying the reason to choose the services of the ICICI

Bank is because they are good in efficient customer service.

And the income level of the respondents who are having an account in ICICI bank falling Under the income level of Rs. 5,000 Rs.15.000. The age group of 25yrs 35yrs respondents mostly is having an account in ICICI bank. The both gender are equally having an account in ICICI bank. And many of the respondents are not aware of the many services rendered by the ICICI

Bank. The few are deposit of cash in ATM, request for cheque book in ATM, end of the Day balance in mobile, etc.

Sum Of the respondents to choose the ICICI bank is because the bank is more

Reliable to the customers.

And many of the respondents are saying the reason to choose the services of the

ICICI bank is because they are good in efficient customer service and efficient complaint handling.

53

And the income level of the respondents who are having an account in ICICI bank

falling under the income level of Rs. 5,000 - Rs.15.000.

The age group of 25yrs - 35yrs respondents mostly is having an account in ICICI bank. The male gender is mostly having an account in ICICI bank. And many of the respondents are not aware of the many services rendered by the ICICI bank. The few are deposit of cash in ATM, request for cheque book in ATM, the day balance in mobile, etc.

COMPETITORS
Competitors of ICICI Bank: Their nearest competitor in the private banking sector is HDFC Bank. As compared to ICICI Bank HDFC is frenetically seeking to shrug off the image of being a one-product company (home loans), by using synergies that exist with its bank to foray into various areas like ebroking, mutual funds, and insurance. For ICICI Bank, it is imperative that it moves away from the high-risk, low-return business of project finance. Universal Banking, ICICI Style ICICI: Bonds, loans, ICICI Web Trade: Online stock corporate finance, and infrastructure finance. ICICI Bank: Retail and corporate banking, and cash management
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trading ICICI Home: Housing finance

ICICI Capital: Financial products marketing and distribution ICICI Prudential: Life Insurance joint venture ICICI Lombard: General Insurance joint venture ICICI Infotech: Software solutions and IT-enabled services ICICI Personal Financial Services: Retail loan distribution ICICI International: Offshore investment and fund management

ICICI Securities: I-Banking, corporate finance, and advisory ICICI Brokerage: Broking and equity research ICICI Venture: Private equity investments ICICI Kinfra: Infrastructure financing in Kerala ICICI Winfra: Infrastructure financing in West Bengal ICICI Knowledge Park: Infrastructure and support facilities

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

HDFC BANK LIMITED

The bank was incorporated in August. 1994 in the name of 'HDFC Bank Limited', with its registered office in Mumbai, India. HDFC Bank commenced operations as a Scheduled Commercial Bank in January
55

1995. The authorized capital of HDFC Bank is Rs.450 crore (Rs.45 billion). The paid-up capital is Rs.282 crore (Rs.28.2 billion). Apart from the usual facilities, you get a free ATM Card, Inter-branchbanking, Net-Banking, Bill-Pay, Phone-Banking, Debit Card and Mobile-Banking, among others. You also get privileges like fee waivers, enhanced ATM withdrawal limit, priority locker allotment, free Demat Account al'}d lower interest rates on loans, t_ name a few. The money is automatically swept in from your fixed deposit into your Savings Account. HDFC Gives you an overdraft facility up to 75% of your Fixed Deposit. In an emergency, you can access your funds while your Fixed Deposit continues to earn high interest. Apart from Regular and Premium Current accounts we also have HDFC Bank Plus, a Current Account' and then some more. You can transfer up to Rs. 50 lakh per month' at no extra charge, between the four metros. You can also avail of cheque clearing between the four metros, get cash delivery/pickup upto Rs. 25,000/-, home delivery of Demand Drafts, at par cheques, outstation cheque clearance facility ,etc.24-hour automated banking services with 39 PhoneBanking numbers available. Inter-city/Interbranch Banking (Access your account from any of our 435 branches in 199 cities. Net Banking, International Debit Card (An ATM card you can shop with all over the country and in over 140 countries with), MobileBanking, Bill Payment (Pay your telephone, electricity and mobile phone bills through our ATMs), Internet, phone or mobile phone. No more standing in long queues or writing cheques.

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The HDFC House HDFC Housing finance HDFC Asset Mutual funds Management HDFC Reality Online property solutions HDFC (JV with Mahindras) Life insurance joint venture

Standard Life HDFC Internet and phone broking Securities Gruh Finance Home loans for repair and reconstruction

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OTHER BANKS:
STATE BANK OF INDIA
The State Bank of India was thus born with a new sense of social purpose aided by the 480 offices comprising branches, sub offices and three local Head Offices inherited from the Imperial Bank. The concept of banking as mere repositories of the communitys savings and lenders to creditworthy parties was soon to give way to the concept of purposeful banking sub serving the growing and diversified financial needs of planned economic development. The State Bank of India was destined to act as the pacesetter in this respect and lead the Indian banking system into the exciting field of national development.

State Bank of Bikaner and Jaipur

State Bank of Bikaner and Jaipur, a professionally managed Public Sector Bank with a track; record of uninterrupted profitability and dividend payment (except one year) since its inception in 1963, came into existence after amalgamation of the erstwhile State Bank of Jaipur with State Bank of Bikaner, as a subsidiary of State Bank of India.

AXIS Bank:
In the case of Axis Bank, retail loans have declined from 30 per cent of the total loan book of Rs 25,800 crores in June 2006 to around 23 per cent of loan book of Rs.41,280 crore (as of June 2007). Even over
58

a longer period, while the overall asset growth for Axis Bank has been quite high and has matched that of the other banks, retail exposures grew at a much slower pace.

From which bank you have account?

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40 35 30 25 VALUE IN 20 NUMBERS 15 10 5 0

39 26 20 15

ICICI

HDFC

UTI

OTHER

BANK NAME
1- 39% Bank name of ICICI. 3- 15%Bank name of other. 2- 20% Bank name of HDFC. 4- 26% Bank name of Other.

Do you think that ICICI is giving a good return?

60

60 50 40 VALUES IN 30 NUMBER 20 10 0 YES NO YES OR NO

56

44

Implications:- As this chart is showing according 56% people ICICI is giving good return , While, it should be 100% people.

Why ICICI Bank Leads:

ICICI bank envisaged retail banking as a key area of strategic emphasis for it with the share of the retail business (both on the
61

funding and asset sides) growing strongly year after year the share of retail business, particularly retail assets. It appears to be following a business strategy that is quite different from the high-volume and commodity-style approach of AXIS Bank and HDFC Bank. That strategy also has its pluses in terms of the relatively higher margins in some segments of the retail business and the in-built credit risk diversification (and mitigation) achieved through a widely dispersed retail credit portfolio. ICICI Bank has been able to maintain the quality of its loan portfolio for a decent time periodnow.

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ANALYSIS AND INTERPERTTION

RESULTS OF SURVEY CONDUCTED ON CUSTOMER VIEW

CONVENIENCE OF LOCALITY

50 45 40 35 30 VALUES IN 25 NUMBER 20 15 10 5 0

35 17

48

OTHER

HDFC

ICICI

YES OR NO

Implications: - As this bar is showing according to 48% people,locality of ICICI branches are most convienent, While, it should be 100% people.

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Customers satisfaction level with ICICI

22%

32%

46%

unsatisfied

satisfied

highly satisfied

Implications:- As this bar is showing 22% people are unsatisfied, While, it should be 0% people.

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How long did you wait in queue

13%

30%

57%

0-5 min

5-10 min

more than 10 min

Implications:- As this bar is showing 57% people wait in queue 0 to 5 minutes. While, it should be 100% people.

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IMPORTANCE OF CUSTOMERS RELATIONSHIP:

60 50 40 VALUES IN 30 NUMBER 20 10 0 53 17 HDFC 30 Other

ICICI

COMPANY'S NAME
IMPLICATION: As this chart is showing IMPORTANCE OF CUSTOMER RELATIONSHIP for ICICI is 53%, While, it should be 100% people.

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Did you think number of customers available are sufficient

90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

82%

18% Yes Yes No No

Implications:- As this bar is showing according 82% people no. of customer available are sufficient, While, it should be 100% people.

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SWOT ANALYSIS

STRENGTHS All the branches are interconnected which give the unique facility of anywhere banking. All operations of the bank are carried on with the help of computers thus transaction are carried with greater efficiency. ATM + Debit card facility. Large number of ATMs (28 in Jaipur). High number of executives which make the work of customers very convenient. The withdrawal limit provided by the bank is 25000 per day through ATM & 49,999 through cheque per day. OPPORTUNITIES Peoples dissatisfaction towards nationalized banks in terms of services has turned to be blessing for private banks. Among the private players ICICI Bank have the excellent brand image. There lies a great scope in forex department which is unutilized to a greater extent can yield much better results by which the bank can increase its volume. Special services can be provided to women as the womens role is becoming prominent. The trust of people is increasing on the banks rather then going for financial institution.
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There is vast untapped opportunity which lies for bank .

THREATS Reorganization of PSUs. The all PSUs have started to redefine their services to attract customers attention. A few foreign banks have been permitted to increase their number branches and its entry has taken away some business of the existing banks. Stringent norms by RBI in any time in future can be a threat to private banks as their activities can be adversely affected. Maximum customer base in Jaipur ;as compared to any of the bank. WEAKNESS Less awareness among general masses about the different services provided by bank. Wrong location of the ATMs machine. Peoples faith in private banks is still not very high. Dissatisfaction among customers due to improper and lack of after sales services. Some or the other time the ATMs become out of order. Exchange rates of demand draft are high

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CONCLUSIONS
Banking is also now being regarded as a versatile financial planning tool. Research indicates that Indians have four basic financial needs during their life asset accumulation (such as buying a house or car), protecting their family, securing their childrens education, and provision for their retirement.

India being a country having a huge population of around one billion people with only 32% of the banking population in India possessing banking the country has a vast potential, which has been left untapped till now.

For Banking company Banking advisors are the lifeline and a very huge asset so each company try to recruit and select a potential force of Banking advisors because this is the advisors who generate maximum business for the Bank . Banking advisors provide a very strong support to the Bank and do sall possible efforts to generate huge amount of profit to the company and for him. 1) The pension monies entering the Mutual Fund industry, as retirement products can be offered for different income groups, age categories, and different service classes, varying asset allocation with annuity, life cover and withdrawal facility at varying stages. 2)Innovative products such as target maturity plans and children plans, commodity-based products, new asset classes such as real
70

estate funds, hedging and arbitrage products and bundled products providing pension, insurance and mutual fund benefits in one product should be introduced by the mutual fund industry. 3) The small-cap funds and funds with more-volatile fund flows hold more cash. However, the fund managers with better stock-picking skills should hold more cash, so that when the market falls the customers do not have to suffer losses. 4) The wealth managers should keep analyzing the portfolios of their customers for proper investments and superior returns.

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RECOMMENDATION AND SUGGESTIONS

STRATEGIES TO BE ADOPTED FOR VARIOS SECTORS: Strategy for Schools and colleges First, efforts should be directed towards institutions which have a fee deposition counter within the premises so that there is no need on the part of the bank to put extra efforts for fee collection . Provide life/ accidental insurance cover to all the students and teachers of the institution concerned for the period of their association with the concerned institute. Nominal premium charges may be charged per student subject to negotiations towards insurance cover. Zero balance accounts facility for all the teachers a part from their salary accounts. Free medical checkup to all the students at least once a year. Promise special educational loans to meritorious students passing out of the concerned institution and excelling in competitive exams. Provide renovation loans for the institution/ college concerned at less then the prevailing rates of interest. Highlight the feature of third party banking i.e. crediting any amount deposited in the account of the concerned institution with out any specific instructions. Provide doorstep/room service facility without any charge to the institution concerned. Sponsor/co-sponsor the annual day event or sports day evens held at the institutions to strengthen association with them.

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 Commit to waive any charges that might accrue due to any default on the part of administration during the courts of operation of accounts by them. Provide discount on the AQB to be maintained to parents of students who decide to open account with ICICI Bank. Made arrangement for fee collection keeping in mind the convenience of parents and the institution concerned. STRATEGY FOR CINEMA HALLS: In Jaipur cinema hall are the most happening places especially during vacations. Cinema halls are these days going flooded with movie watchers. No doubt, these cinema halls attract huge collections and they need to back their money everyday. Carrying huge amount of money is again very risky. To capture this sector ICICI BANK should emphasize on doorstep banking, phone banking and their offers of free bank facility to current account holders. The same strategy can also be adopted to tap cinema halls owners. Besides through slide shows and captions during the intermission time, ICICI BANK can publicize its products, their milestones/achievements. Placing canopies at the cinema halls (with due permission) is also a good idea. Reason being audience usually come before the schedule time of starting of movies and they spend this time either by watching movie posters/ hoardings or loitering here and there. They can be encouraged easily to divert their attention towards standard chartered canopies. Also the ICICI BANK can place its logo in the posters of the box office hit films. STRATEGY FOR MEDICINE SHOPS: It is very difficult to tap the retail chemist storeowners at this point of time because they already have their business account with at least one of the bank. Also ICICI BANK does not provide overdraft and cash
73

credit facility and personal loan to businessman. Therefore it is really a hard target to combat. Strategy to be followed : ICICI BANK should contact their association heads seek to sponsor their meetings. Provide personal loans to shopkeepers STRATEGY FOR RESORTS AND WATERPARKS: ICICI Bank account holders should get some discount on specific schemes of membership. Also the tie up with the resort or the water park should provide an unchallenged opportunity to ICICI Bank to advertise and spread awareness among all the members and the prospective customers. Most people are not aware about ICICI BANK hence by conduction the various awareness programs; the banks awareness can be increased manifold. The bank must provide O.D. and C.C. limits to its customers as other banks do. Due to the potential offered by this industry the new ATM of the Bank must be installed in the area nearing this industry. STRATEGY FOR PETROL PUMP OWNERS: Hoardings and banners must be placed on the pumps. Charges for bounce cheque should be reduced. They should be made aware of doorstep banking which is a very important feature for them. Petrol pump owners are the most potential customers for opening current accounts; they must be made aware about the various features of current accounts.

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