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Icfai national


Project Report
Submitted in lieu of the partial
fulfillment of the

Degree of Master of Business Management



Submitted by:-
Submitted to:-
• 1
Avinash kumar
Mrs.Sujata sinha
En no-8nblk058
Faculty of inc
Batch- 2008-2010 Lucknow




• Introduction

• Company profile

• Banking structure

• product

• Major components


• Introduction of topic

• Research methodology
• 2
• Objective

• Data analysis

• Recommendations

• Conclusions

• Bibliography

• Questionnaire

To acknowledge all the persons who had helped for the fulfillment of the

project is not possible for any researcher but in spite of all that it becomes

the foremost responsibility of the researcher and also the part of research

ethics to acknowledge those who had played a great role for the

completion of the project.

The text contain in this report is the manifestation of learning Process

that began for me over 1 month ago.during the intervening period I have

come across some wonderful people in the form of Relatives ,friends or

acquaintances from I have learnt immensely .While it is not possible to

name them individually I would like to express a deep sense of gratitude

towards them.

• 3
I would like to thank my colleagues who have supported me through thick

and thin during the last few months.These include Mr.Dev kant, MrAjit


No amount of thank can ever repay the great debt that I owe My Faculty

guide Mrs. Sujata sinha who has provided me constant inspiration over

the past one year.In fact ,this report Would not have been possible but for

the direct and indirect Support ,inspiration and guidance from Sujata mam

who has been a consant mentor in my efforts over the few months.

Rest all those people who helped me are not only matter of

acknowledgment but also authorized for sharing my success.

• 4

Marketing is a social & managerial process by which an individual and group obtain what

they need and want through creating offering and exchanging products of value with others.

Marketing is getting the right good and services to the right people to the

right place, at the right time at the right place with the right

• 5
communication and promotion. It is the art of creating and satisfying

customer at a profit.

Advertising is one of the major tools of companies to direct pervasive

communication to target buyers and publics. An identified sponsor defines

it as any paid from and non personal presentation and promotion of ideas,

goods or services.

Advertising is a cost effective way to disseminate message whether it is to

saving account of ICICI bank and give best service in account.


Banking is the backbone of a modern economy. Health of banking industry is one of

the most important pre-conditions for sustained economic progress of any country. The world

of banking has assumed a new dimension at the dawn of the 21st century with the advent of

tech banking, thereby lending the industry a stamp of universality. In general, banking may be

• 6
classified as retail and corporate banking. Retail banking, which is designed to meet the

requirements of individual customers and encourage their savings, includes payment of utility

bills, consumer loans, credit cards, checking account balances, ATMs, transferring funds

between accounts and the like. Corporate banking, on the other hand, caters to the needs of

corporate customers like bills discounting, opening letters of credit and managing cash.

The Indian banking scene has changed drastically with the private

sector making inroads in an area hitherto dominated by large public sector

banks. Growing disinvestment is likely to impact the banking industry as

well. There is every possibility of privatization of public sector banks,

leading to greater operational autonomy.

The development of the Indian banking sector has been

accompanied by the introduction of new norms such as Income

Recognition and Capital Adequacy, by the government. The latter implies

that banks can lend on the basis of their respective capital base. These

norms have caused banks to construct equity on their own, before going in

for debt. Disintermediation is a real threat for banks. Of late, banks are

adopting the EVA (Economic Value Added) concept wherein revenues are

viewed in the context of the risk associated with them.

The New World order has ensured "Survival of the Fittest". New services

are the order of the day, in order to stay ahead in the rat race. Banks are

now foraying into net banking, securities, consumer finance, housing

finance, treasury market, merchant banking and insurance.

• 7
• 8

ICICI Bank is India's second-largest bank with total assets of about Rs. 1

trillion and a network of about 540 branches and offices and over 1,000

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 areas

of investment banking, life and non-Banking , venture capital, asset

management and information technology. ICICI Bank's equity shares are

listed in India on stock exchanges at Chennai, Muzaffarnagar, Kolkata and

Vadodara, 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).

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
• 9
India and representatives of Indian industry. The principal objective was to

create a development financial institution for providing medium-term and

long-term project financing to Indian businesses. In the 1990s, ICICI

transformed its business from a development financial institution offering

only project finance to a diversified financial services group offering a wide

variety of products and services, both directly and through a number of

subsidiaries and affiliates like ICICI Bank. In 1999, ICICI become the first

Indian company and the first bank or financial institution from non-Japan

Asia to be listed on the NYSE.

After consideration of various corporate structuring alternatives in the

context of the emerging competitive scenario in the Indian banking

industry, and the move towards universal banking, the managements of

ICICI and ICICI Bank formed the view that the merger of ICICI with ICICI

Bank would be the optimal strategic alternative for both entities, and

would create the optimal legal structure for the ICICI group's universal

banking strategy. The merger would enhance value for ICICI shareholders

through the merged entity's access to low-cost deposits, greater

opportunities for earning fee-based income and the ability to participate in

the payments system and provide transaction-banking services. The

merger would enhance value for ICICI Bank shareholders through a large

capital base and scale of operations, seamless access to ICICI's strong

corporate relationships built up over five decades, entry into new business

segments, higher market share in various business segments, particularly

• 10
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

finances 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.

• 11

ICICI Bank has signed an agreement to use the NCR switch mark

technology for online-networking all its ATMs, the officials said they

network would come into place in September.

ICICI Bank recently restructured its organizational structure by setting up

strategic business units for retail banking, corporate banking and fore and

treasury operations, as independent profit centers.

ICICI is all set to launch a 60-second television commercial on August 15,



ICICI Bank became the first Indian bank to list on the New York Stock

Exchange with its $175-million American depository shares issue

generating a demand book 13 times its size at $2.2 billion.

The Bank proposes to bring credit cards to the "large, underserved

population" in rural and semi-urban areas.

• 12
SkyCell Communications Ltd, one of the two cellular service providers in

Chennai, has launched `Sky Banking', for which the company has tied up

with ICICI Bank and HDFC Bank.

The ICICI has announced the launch of mobile banking services for its

customers, using the wireless application protocol (WAP) technology.

Ford India has tied up with ICICI Bank to introduce a scheme, enabling

non-resident Indians (NRIs) to purchase a Ford Ikon car for their friends

and relatives in India.

ICICI Bank has set up an ATM facility at an Indian Oil Corporation

petrodiesel outlet at Chennai.

ICICI Bank has tied up with Chennai Telephones to provide Internet bill

payment facility to its customers.


The Indian banking industry, which has Reserve Bank of India as its regulatory

authority, is a mix of the public sector, private sector, and foreign banks. The private sector

banks are again split into old banks and new banks.

• 13

Scheduled commercial banks are those that come under the purview

of the Second Schedule of Reserve Bank of India (RBI) Act, 1934. The

banks that are included under this schedule are those that satisfy the

criteria laid down vide section 42 (60 of the Act). Some co-operative banks

come under the category of scheduled commercial banks though not all

co-operative banks.


Public sector banks are those in which the Government of India or

the RBI is a majority shareholder. These banks include the State Bank of

India (SBI) and its subsidiaries, other nationalized banks, and Regional

Rural Banks (RRBs). Over 70% of the aggregate branches in India are

those of the public sector banks. Some of the leading banks in this

segment include Allahabad Bank, Canara Bank, Bank of Maharashtra,

Central Bank of India, Indian Overseas Bank, State Bank of India, State

Bank of Patiala, State Bank of Bikaner and Jaipur, State Bank of

Travancore, Bank of Baroda, Bank of India, Oriental Bank of Commerce,

UCO Bank, Union Bank of India, Dena Bank and Corporation Bank.


• 14
Private banks are essentially comprised of two types: the old and the

new. The old private sector banks comprise those, which were operating

before Banking Nationalization Act was passed in 1969. On account of

their small size, and regional operations, these banks were not

nationalized. These banks face intense rivalry from the new private banks

and the foreign banks. The banks that are included in this segment

include: Bank of Madura Ltd. (now a part of ICICI Bank), Bharat Overseas

Bank Ltd., Bank of Rajasthan, Karnataka Bank Ltd., Lord Krishna Bank Ltd.,

The Catholic Syrian Bank Ltd., The Dhanalakshmi Bank Ltd., The Federal

Bank Ltd., The Jammu & Kashmir Bank Ltd., The Karur Vysya Bank Ltd.,

The Lakshmi Vilas Bank Ltd., The Nedungadi Bank Ltd. and Vysya Bank.

The new private sector banks were established when the Banking

Regulation Act was amended in 1993. Financial institutions promoted

several of these banks. After the initial licenses, the RBI has granted no

more licenses. These banks are gearing up to face the foreign banks by

focusing on service and technology. Currently, these banks are on an

expansion spree, spreading into semi-urban areas and satellite towns. The

leading banks that are included in this segment include Bank of Punjab

Ltd., Centurion Bank Ltd., Global Trust Bank Ltd., HDFC Bank Ltd., ICICI

Banking Corporation Ltd., IDBI Bank Ltd., IndusInd Bank Ltd. and UTI Bank


• 15

The operations of foreign banks, though similar to that of other

commercial Indian banks, are mainly confined to metropolitan areas.

Foray of foreign banks depends on reciprocity, economic and political

bilateral relations. An inter-departmental committee has been set up to

endorse applications for entry and expansion. Foreign banks, in the wake

of the liberalization era, are looking to expand and diversify. Some of the

leading foreign banks that operate in India are Citibank, Standard

Chartered Grindlays Bank, Hong Kong Shanghai Banking Corporation,

Bank of America, Deutsche Bank, Development Bank of Singapore and

Banque National De Paris.


Functioning of Public Sector Banks (PSBs), which are yet to achieve

computerization across the board, is at a relative disadvantage when

compared to the private sector, which is offering state-of-the-art facilities

such as ATMs, doorstep banking, banking on phone, and net banking. PSBs

also suffer from huge costs of labor and low levels of automation. At this

rate, it may not be long before new channels devised by private banks

effectively surpass the number of branch networks offered by the PSBs.

This apart, the problems which have assumed enormous proportion

today as far as Public Sector banks are concerned are ballooning NPA

• 16
levels, declining margins, poor credit off-take, high overheads, and lack of

good quality assets. Banks are sticking to reliable borrowers for fear of bad

debts. In fact, banks largely invest in government securities, which have

zero risk. With GOI being the single largest borrower, the yields on these

securities determine the interest rates.

The government aims to decrease its shareholding in PSBs to 33%,

however, at the same time it also wants to retain the controlling stake.

This, it is feared, is not going to solve the problems which PSBs are coping

with now.

• 17

Corporate governance and self-regulation are the ground rules for

the private sector. Government interference is not preferred. While some

private banks such as ICICI Bank, UTI Bank and IDBI Bank have financial

institutions backing them, others are opting for foreign partnerships for

technology and monetary resources.

Private banks have emerged relatively strong, with about 60%

growth reported in net profits in the year ended March 2000. With a net

profit of Rs.120 crores (+46%), HDFC was the clear leader. IDBI Bank,

however took the cake by doubling its net profit, which reached Rs.60.99

crores in March 2000.The jump in profits can mainly be attributed to non-

traditional sectors such as commission, exchange, brokerage, and profit

on sale of investments.

• 18


Corporate Solutions Home Loans

Government Solutions Car & Two Wheeler Loans

Capital Market Services Consumer/Personal Loans

Agriculture Finance Saving & Term Deposit

Structured Finance Salary Account

Project Finance Roaming Current Accounts

Infrastructure Finance Investment Products

Term Loans Private Banking

Working Capital Finance NRI Services

Cash Management Services Demat Services

Trade Finance Services Credit & Debit Cards

International Banking Smart Cards

• 19
Treasury Services Bill Payment Services

Corporate Internet Banking E-Cheques

Corporate Advisory Branches

Custodial Services ATMs

Professional Clearing Internet Banking

Membership Services Phone Banking

• 20

What's on offer

Hello ICICI and HDFC brings you a host of services at your fingertips 365

days a year. A user friendly automated service menu offers you

convenient access to your account coupled with security as, all your

transactions are protected by a TPIN - The Personal password to your

account. But if you do need any assistance our officers will be glad to help


Whats more... this facility comes to you totally free of charge! Some of the

services offered are listed below

Savings account :

o Balance Enquiry Statement of account

o Cheque status enquiry Stop Payment

o Cheque book request

o Dial-a- draft/payorder

o ATM lost card reporting

o Request for a new ATM PIN

Fixed Deposits:
• 21
o Opening a Fixed Deposit

o Checking Fixed Deposit details

o Request for TDS statement

Credit Cards:

o Balance and account related inquiries Statement of account

o Dial a draft/payorder

o Lost/Replacement card

o ATM pin re-issue

o Payment instructions (maybe through a letter to the Call



o Standing Instructions

o Complaints and suggestions

o Inquire about any ICICI retail product

• 22

Risk is an integral part of the banking business and ICICI Bank aims at the delivery of

superior shareholder value by achieving an appropriate trade-off between risk and returns.

ICICI Bank is exposed to various risks, including credit risk, market risk and operational risk.

Our risk management strategy is based on a clear understanding of various risks, disciplined

risk-assessment and measurement procedures and continuous monitoring. The policies and

procedures established for this purpose are continuously benchmarked with international best

practices. A comprehensive range of quantitative and modelling tools developed by a

dedicated risk analytics team supports the risk management function at ICICI Bank.

The Risk, Compliance & Audit Group (RCAG) is responsible for assessment,

management and mitigation of risk in ICICI Bank. This group, forming a part of the

Corporate Centre, is completely independent of all business operations and accountable to

the Risk and Audit Committees of the Board of Directors. RCAG is organised into six sub-

groups: Credit Risk Management Group, Market Risk Group, Credit Policies Group, Internet

Audit Group, Retail Risk Group and Risk Analytics Group.

• 23

Credit risk is the risk that a borrower is unable to meet its financial obligations to the lender.

ICICI Bank measures, monitors and manasgers credit risk for each borrower asnd also at the

portfolio level. ICICI Bank has a standardised credit approval process, which includes a

well-established procedure of comprehensive credit appraisal and rating. ICICI Bank has

developed internal credit rating methodologies for rating obligors as well as for rating. ICICI

Bank has developed internal credit rating methodologies for rating obligors as well as for

product / facilities. The rating factors in quantitative and qualitative issues and credit

enhancement features specific to the transaction. The rating serves as a key input in the

sanction as well as post-sanction credit processes. Credit rating, a as concept, has been well

internalised within the Bank. The rating for every borrower is reviewed as least annually and

for higher risks credits and large exposures at shorter intervals. Sector knowledge has been

institutionalized across ICICI Bank through the availability of sector-specific information on

the Intranet. Industry knowledge is constantly updated through field visits, interactions with

clients, regulatory bodies and industry experts. In respect of the retail credit business, ICICI

Bank has a system of centralized approval of all products and policies and monitoring of the

retail portfolio. We continuously refine our retail credit parameters based on portfolio


• 24

Market risk is the risk of loss resulting from changes in interest rates,

foreign currency exchange rates, equity prices and commodity prices.

HDFC Bank’s exposure to market risk a function of its trading and asset

and liability management activities and its role as a financial intermediary

in customer-related transactions. The objective of market risk

management is to minimize the impact of losses due to market risks on

earning and equity capital.

Market risk policies include Asset-Liability Management (ALM)

policies and policies for the trading portfolio. The Asset-Liability

Management Committee (ALCO) of Board of Directors approves ALM

policies. ALCO’s role encompasses stipulating liquidity and interest-rate

risk limits, monitoring risk levels by adherence to set limits, articulating

the organization’s interest rate view and determining business strategy in

the light of the current and expected business environment. These sets of

policies and processes are articulated in ALM policy. A separate set of

policies for the trading portfolio address issues related to investments in

various trading products and are approved by the Committee of Directors

(COD) of the Board. RCAG exercises independent control over the process

of market-risk management and recommends changes in processes and

methodologies for measuring market risk.

• 25

HDFC Bank has a separate Middle Office Group to monitor both

credit and treasury-related compliance. The Credit Middle Group monitors

compliance with policies and terms of sanction of credit proposals.

The Treasury Middle Office Group monitors the asset-liability

position under the supervision of the ALCO. It also monitors treasury

activities, including determining compliance with various exposure and

dealing limits, verifying the appropriateness and accuracy of various

transactions, processing these transactions, tracking the daily funds

position and all treasury related management and regulatory reporting.

Interest rate risk is measured through the use of re-pricing gap analysis. Liquidity risk

is measured through gap analysis. HDFC Bank ensures adequate liquidity at all times

through systematic funds maintenance of liquid investment as well as by focusing on more

stables funding sources such as retail deposits. HDFC Bank mitigates its exposure to

exchange rate risk by stipulating daily stop-loss limits and position limits.


Operational risk can result from a variety of factors, including failure

to obtain proper internal authorization, improperly documented

transactions, failure of operational and information security procedures,

• 26
computer systems and software or equipment, fraud, inadequate training

and employee errors. We attempt operational risk by maintaining a

comprehensive system of internal controls, establishing systems and

procedures to monitors transactions, maintaining key back-up procedures

and undertaking regular contingency planning. The Middle Office Group

monitors adherence to credit procedures. The International Audit Group

undertakes a comprehensive audit of all business group and other

functions, in accordance with a risk-based audit plan. This plan allocates

audit resources based on an assessment of the operational risks in the

various businesses. ICICI Bank has been a pioneer in the implementation

of a risk-based audit methodology in the Indian banking sector. The

International Audit Group conceptualizes and implements improved

system of internal controls to minimize operational risk.

• 27


Future expectations

We soon plan to introduce:

• payment services to certain standard utilities

• Demat-related information

• own accounts funds transfer

• ICICI will also use WAP technology for undertaking on-line


If you have an HDFC Phone Banking Relationship Number (under which your

accounts are linked to the HDFC Call Centre for HDFC Phone Banking), the same accounts

will be linked for Mobile Commerce. If you do not have an HDFC Phone Banking

Relationship Number, you can specify the account number(s) and your HDFC Credit Card

Number to be linked for SMS.

• 28


ICICI Bank has appointed international consultancy major

monitor group to help the bank in identification of business

prospects in the government sector which has recently been

identifies as a focus area.

Monitor will help ICICI get business from the government

sector, particularly the infrastructure sector mandates. The

bank did not consider government business a focus area till

sometime back. Now, Monitor Group will study investment

prospect of tourism in Rajasthan, opportunities for the

government of Andhra Pradesh and investment prospects for

the bank through the government in cities such as Pune and


“We are trying to find out how ICICI Bank can be a

partner to the government in development plans and

projects. The bank has initiated fresh focus towards the

government which is a major source of business and we would

like to increase relationship with government agencies,” ICICI

officials said.
• 29
Monitor Group will find out ways and means for ICICI

Bank through which the latter “Can solve government fund

flow problems and how ICICI Bank can play a role in the

projects,” bank officials said.

This is a test study and if there is a positive response

from the government then more such specific developmental

studies will be taken up by the bank as partners to



1/11/03 ICICI Bank clocks 110% growth in retail portfolio in Q2

Mumbai: The retail portfolio of ICICI Bank grew by 110 per cent to Rs

25,205 crore (Rs 12,021 crore) in the second quarter. Retail assets

constituted 39 per cent of the bank's customer assets. While leveraging

and enhancing its position as the original lender, the bank also continued

to focus on securitisation of its customer assets. This had enabled the

bank to optimize resources and capital utilization and diversify the

composition of its asset portfolio.

• 30
During the first half of this financial year, the total sell down and

securitisation of assets was around Rs 5,300 crore. According to the bank,

its net restructured loans declined to Rs 7,856 crore (Rs 10,491 crore). Net

NPAs were at Rs 3,128 crore, constituting 4.8 per cent of its customer

assets. Deposits grew by 18 per cent to Rs 56,880 crore (Rs 48,169 crore).

As on September 30, 2006, the deposits constituted 58 per cent of the

bank's funding against 42 per cent in the corresponding period of the

previous year. The capital adequacy as on September 30, 2006 was at

11.5 per cent.


ICICI Bank offers wide variety of Deposit 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 your doorstep. Select any of our deposit products and provide

your details online and our representative will contact you for Account


• 31
ICICI Bank offers you a power packed Savings Account with a host of

convenient features and banking channels to transact through. So now

you can bank at your convenience, without the stress of waiting in queues.

Senior Citizen Services

We understand that as you reach the age to retire, you do have certain

concerns … whether your hard earned money is safe and secure …

whether your investments give you the kind of returns that you need.

That's why we have an ideal Banking Service for those who are 60 years

and above. The Senior Citizen Services from ICICI Bank has several

advantages that are tailored to bring more convenience and enjoyment in

your life.

Young Stars

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

management at an early age. Banking is a serious business, but we make

• 32
banking a pleasure and at the same time children learn how to manage

their personal finances.

Fixed Deposits

Safety, Flexibility, Liquidity and Returns!!!! A combination of unbeatable

features of the Fixed Deposit from ICICI Bank.

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

investments. But simply going ahead without saving for the future is not

an option for you. Through ICICI Bank Recurring Deposit you can invest

small amounts of money every month that ends up with a large saving on

maturity. So you enjoy twin advantages- affordability and higher earnings.


Applicants must satisfy the following documentation requirements:

• Identity proof

• 33
• Proof of communication address

• Self cheque (if the applicant is not visiting the branch for account


Proof of communication
Identity Proof
(Any one of the following)
(Any one of the following)

Original letter of introduction from Introduction by an existing and

existing bank along with KYC cheque of satisfactory customer as address

the same Bank proof

Driving License – Book type or laminated Latest Electricity Bill

& embossed

Voter Identity Card with KYC cheque for Certificate from the postal office

operating accounts. confirming address of applicant

Cash can be accepted for Term deposits.

Employee Identity Card Original Letter from Employer

certifying the residential address of

applicant. Signature of the

employee has to be attested on the


PAN Card Telephone bills from any telephone

service providers and mobile

• 34
service providers (KYC cheque

mandatory for mobile service


Defence Dependent's card Consumer gas connection

card/book/Pipe Gas bill (same as

electricity bill)

Ex-Service Man Card Certificate from the

ward/equivalent rank officer,

maintaining election roll, certifying

address of the applicant

Bar Council/Indian Medical Association Registered and valid Lease/ Leave

Card/Senior Citizen Card agreement with copies of utility


PIO Booklet for returning NRIs Post Office Savings Pass Book with

KYC cheque

MAPIN card Statement of account or Pass Book

of a scheduled commercial bank

with entries of at least last 3

months alongwith KYC cheque

Premium Receipt from any Banking


Certificate by Village Extension

• 35
Officer (VEO)/Village Head or equal

rank officers

Domicile Certificate with

communication address and


Accepted as both Identity and Address proof

(Any one of the following)


Arms License issued by State/Central Government of India authorities

Freedom fighter's pass issued by Ministry of Home affairs, Government of

India with photograph of applicant

Pension payment order/book/Card issued by State/Central Government of


Printed Ration Card with Photograph of applicant.

House hold Card with photograph issued by Govt of Andhra Pradesh

ID card with photograph issued by Govt of Jammu and Kashmir

Bank Pass Book with photograph issued by SBI and its subsidiaries or

Nationalised Banks

Photo Social Security Card (Smart Card) issued by Central/State Govts or

Union territories.

Savings Bank Account: 3.50%

• 36
Domestic term deposits (General Category) :

* Subject to revision without further notice.

** Recurring Deposit will not be available for tenure of 390 days.

Note: Rates for Deposits for Rs.1 Crore and above will be advised

by treasury from time to time.


1. Eligibility Criteria

A person who has completed the age of 60 years may be treated as a

senior citizen for getting the benefit under the special deposit scheme for

senior citizens.

2. Verification of Age:

Opening of New Account

At the time of opening of a new deposit account of a senior citizen, the

branch should satisfy about the age through verification of any of the

following documents:-

Secondary School Leaving Certificate indicating date of Birth

LIC Policy

Voters Identity Card

Pension Payment Order

• 37
Birth Certificate issued by the competent authority



Interest Rates for Senior Citizens :

• 38
*Subject to revision without further notice.

** Recurring Deposit will not be available for tenure of 390 days.

Penalty on Pre-mature withdrawal (All Categories) would be

applicable as below:


• The ICICI Bank Ncash debit card is a debit-cum-ATM card providing

you with the convenience of acceptance at merchant establishments

and cash withdrawals at ATMs.Click here for details

• Free Access to any Bank's ATM – The next time you want to

withdraw cash from your ICICI Bank account, just walk into any

bank's ATM and use your ICICI Bank ATM-cum-Debit card for as

many as 9 free transactions (including cash withdrawal and balance

enquiry) in a quarter. This offer is available to customers who

maintain more than Rs.25,000 in a given quarter in their domestic

Savings Account with ICICI Bank. The above benefit can be availed in

the next quarter.

• Anywhere Banking - This facility entitles the account holder to

withdraw or deposit cash upto a limit of Rs.50,000 across all ICICI

Bank branches.

• 39
• You can give us various types of standing instructions like

transferring to fixed deposit accounts at regular intervals.

• An average quarterly balance of Rs 5,000 only.

Minimum Balance

Type of

Rs 5,200

Non-maintenance of the minimum average quarterly balance

attracts a fee of Rs 750 per quarter.


• The facility of Nomination is available for relationships in the names

of individuals. Unless otherwise specifically, given in writing by

depositors, nomination in deposit accounts will be at Customer ID


• A depositor(s) however has / have the right to specify different

nominations at account level by completing the appropriate forms.

• 40
• Further, the applicant(s) is / are at liberty to change the nominee

during the currency of the relationship accounts with the Bank

through declaration to that effect in the appropriate form

A. Repatriable

Repatriable funds (i.e. those which can be taken abroad) need to be kept

in a separate bank account, i.e. NRE Bank account. Typically, funds

brought in from abroad are permitted in such an account. Investments

made from such funds can be repatriated, i.e. proceeds from sale or

otherwise from such investments can be taken abroad. Such investments

are maintained in a Repatriable Demat account.

B. Non-repatriable

Non-repatriable funds (i.e. those which cannot be taken abroad) need to

be kept separate from repatriable funds in a separate bank account i.e.

NRO Bank account. Investments made from such funds cannot be

repatriated, i.e. proceeds from sale or otherwise from such investments

cannot be taken abroad. Such investments are maintained in a Non-

Repatriable Demat account. Money once transferred from NRE account to

NRO account loses its repatriability and hence, cannot be transferred back

to NRE account. Mode of Investment :

A. Portfolio Investment Scheme (PINS)

• 41
Portfolio Investment Scheme (PINS) is a scheme of the Reserve Bank of

India (RBI) under which the 'Non Resident Indians (NRIs)' and 'Person of

Indian Origin (PIOs )' can purchase and sell shares and convertible

debentures of Indian Companies on a recognized stock exchange in India

by routing all such purchase/sale transactions through their account held

with a Designated Bank Branch . The Designated Bank maintains a record

of all investments done under PINS (PINS portfolio).

B. Non - PINS

Any investment other than under PINS is Typically, this includes:

1. Subscription to Primary market offerings (IPOs)

2. Investments made when resident in India.

3. Investments in Mutual funds

4. Investments in derivatives

5. Gifts and Inheritance

Deciding Combination :

You may have to open demat accounts of a specific combination if you

already hold physical shares in that combination. The physical shares can

be converted into electronic form in your demat account by submitting the

• 42
certificates along with a demat request form. You should also open the

required combination under the correct type of demat account :

PINS NRE : For shares acquired earlier under PINS on repatriation basis.

PINS NRO : For shares acquired earlier under PINS on non-repatriation


Non-PINS NRE : For shares acquired earlier other than under PINS on

repatriation basis.

Non-PINS NRO : For shares acquired earlier other than under PINS on

non-repatriation basis and also when 'Resident' in India.

I. Terms & Conditions for establishing relationship and Operating

Accounts (For Resident Individuals)

1. Establishing a Relationship

1.1 Applicant(s) desiring to open a Relationship need(s) to sign a

Relationship form and declare therein that he/she/they has/have agreed to

abide by the rules which are in force from time to time.

1.2 Applicant is required to furnish Identity Proof and Address proof as

follows while establishing a banking relationship with the Bank :

Identity Proof

Verified true copy of valid passport

Letter from existing bank

• 43
Valid driving license

Valid employee identity card

Valid PAN card

Valid photo credit card along with the current billing cycle (latest)


True copy of valid arms license issued by Govt of India/State govts/Union

territory with photograph

Valid pension book

Valid freedom fighter's pass issued Home Ministry of Government of India

• 44

It is India's largest bank with assets worth Rs.2, 615 billion. SBI also has

the distinction of having the world’s largest branch network of 9,000

branches. The bank has a share of about 22% of India's loans and

deposits, and is a top player in trade finance and forex. Through its

subsidiaries, SBI is also a leading provider of other financial products like

mutual funds, investment banking, housing finance and factoring. SBI has

a market share of one-fifth of the banking sector in India. Nationalized

banks and SBI and its subsidiaries form the heart of the Indian banking

system. These two entities operate 70% of the total branches spread

across the length and breadth of India.


As one of the leading public sector Indian banks, Bank of India has the

distinction of being the first bank to open a branch outside India. The

bank, which currently has overseas operations in about 10 countries, is

• 45
one of the leaders in financing foreign trade. It is one of the few Indian

banks that provide tele-banking facilities, Remote Access Terminals for

corporate clients, and Signature Retrieval System. Some of the recent

forays made by the bank in terms of its business operations include bullion

business and demat services.

It is a pioneer in terms of the introduction and adoption of a model

banking policy that suits India and other developing countries. The bank,

which is synonymous with progressive banking in India, has a strong

presence in rural India. The bank was nationalized in 1969. Syndicate Bank

has correspondent relations with 400 banks from all over the globe. The

bank is also one of the leading players in the foreign exchange market.

Citibank, idbi, hdfc,hsbc


Indian banks have a long way to go before they reach the size of their

international counterparts. Even the biggest Indian bank, State Bank of

India, is nowhere on the international scale, with assets in the range of

$50billion. Absence of significant scale benefits and higher implicit costs of

several services are perpetuating the poor ranking of Indian banks in the

international league tables.

• 46
Shareholding structure, government regulations and sheer size of the

country ensure that the existence of Indian banks is not at stake at this

stage. What is at stake is the banking support that is available for Indian

economic activity, and thereby the international competitiveness of

various sectors. What is also at stake is the scope for the banking industry

to earn superior returns through differentiated wider services.

Further, it is quite conceivable that with passage of time, as government

holding in banks is progressively divested, regulatory authorities will be

unable to hold back the international giants from buying out Indian banks.

Even economies with a "domestic mindset", such as France and Germany,

have been forced to bow before the international capital market forces.

It would be a shame if painstakingly built retail strength is offered on a

platter to some predator. The challenge can be met through some

concerted action -


The Government needs to do away with artificial

fragmentation of the financial sector. A case in point is the

segregation of banks and financial institutions induced by policy. If

this is changed, we may well see mergers between the two sectors

to create organizations of size. Why not a merger of Industrial

• 47
Development Bank of India with Bank of Baroda, or even better with

State Bank of India? This would definitely lead to a merger between

ICICI and ICICI Bank and for that matter between HDFC and HDFC

Bank. The possibilities are interesting and numerous.

Domestic Banks

Domestic Banks - private as well as public - need to continuously

explore options to acquire or merge with other institutions to enhance

their size, service or skill-set. This could also mean looking beyond the

national boundaries as truly global corporations do.

New Initiatives

The recent crisis in the Far East has demonstrated the need

for a robust banking sector. Therefore the whole structure of

Regional Rural Banks (RRBs) and Urban Co-operative Banks (UCBs)

needs to be strengthened. The focus that FMCG companies such as

Hindustan Lever have given to the rural sector proves that private

sector interest is not limited to the cities and major towns.

Technological changes (such as wireless communication, net etc.)

have drastically changed the communications scenario. This may be

the time to come out with interesting initiatives with regard to

• 48
structure of RRBs and UCBs so that private sector organizations -

banks as well as non-banks - play a greater role in meeting the

needs and aspirations of hitherto neglected parts of the country.

Social considerations

The full benefit of mergers can only be realized if they are followed

up with some hard measures such as re-location / closure of branches,

rationalization of employee strength etc. It would be a welcome change if

the management and unions collaborate in seeking appropriate social

security from the Government - financed out of the divestment of stake in

these banks.

Indian banking has to operate with a global mindset even while fulfilling

local banking requirements. By joining in the effort to make this happen,

we will get the banking service we need. Else, we will deserve the banking

service we get.

• 49


backbone of a modern economy. Health of banking industry is one of the most important pre-

conditions for sustained economic progress of any country. The world of banking has

assumed a new dimension at the dawn of the 21st century with the advent of tech banking,

thereby lending the industry a stamp of universality. In general, banking may be classified as

retail and corporate banking. Retail banking, which is designed to meet the requirements of

individual customers and encourage their savings, includes payment of utility bills, consumer

• 50
loans, credit cards, checking account balances, ATMs, transferring funds between accounts

and the like. Corporate banking, on the other hand, caters to the needs of corporate

customers like bills discounting, opening letters of credit and managing cash.

The Indian banking scene has changed drastically with the private

sector making inroads in an area hitherto dominated by large public sector

banks. Growing disinvestment is likely to impact the banking industry as

well. There is every possibility of privatization of public sector banks,

leading to greater operational autonomy.

The development of the Indian banking sector has been

accompanied by the introduction of new norms such as Income

Recognition and Capital Adequacy, by the government. The latter implies

that banks can lend on the basis of their respective capital base. These

norms have caused banks to construct equity on their own, before going in

for debt. Disintermediation is a real threat for banks. Of late, banks are

adopting the EVA (Economic Value Added) concept wherein revenues are

viewed in the context of the risk associated with them.

The New World order has ensured "Survival of the Fittest".

New services are the order of the day, in order to stay ahead

in the rat race. Banks are now foraying into net banking,

securities, consumer finance, housing finance, treasury

market, merchant banking and insurance.

• 51

Research methodology is a systematic way, which consists of series of

action steps, necessary to effectively carry out research and the desired

sequencing to these steps. The marketing research is a process of involves

• 52
a no. of inter-related activities, which overlap and do rigidly follow a

particular sequence. It consists of the following steps:-

• Formulating the objective of the study

• Designing the methods of data collection

• Selecting the sample plan

• Collecting the data

• Processing and analyzing the data

• Reporting the findings

Objective of Study

Research Design

Sample Design

Data Collection

Data Analysis

Report of findings

• 53

 To stud of market share in banking sector of ICICI and HDFC.

 To study the consumer satisfaction with ICICI and HDFC.

 To know about the is the position of ICICI bank in market.

 To analyze the decision making process of the consumers.

• 54

Research design specifies the methods and procedures for conducting a

particular study.

A research design is the arrangement of conditions for collection and

analysis of the data in a manner that aims to combine relevance to the

research purpose with economy in procedure. Research design is broadly

classified into three types as

• Exploratory Research Design

• Descriptive Research Design

• Causal Research Design

I have chosen the descriptive research design.

• 55

Descriptive research studies are those studies which are concerned with

described the characteristics of particular individual.

In descriptive as well as in diagnostic studies, the researcher must be able

to define clearly, what he wants to measure and must find adequate

methods for measuring it along with a clear cut definition of population he

want to study. Since the aim is to obtain complete and accurate

information in the said studies, the procedure to be used must be carefully

planned. The research design must make enough provision for protection

against bias and must maximize reliability, with due concern for the

economical completion of the research study.


A Sample Design is a definite plan for obtaining a sample from a given

population. It refers to the technique to the procedure adopted in selecting

items for the sampling designs are as below:

• 56

• Sample method

• Survey period

SAMPLE SIZE: The substantial portions of the target customer that are

sampled to achieve reliable result are 50.

The cost and time limitation completed me to select 50 respondents as

sample size


• In this marketing research project, I am using

• Random sampling method


As complete enumeration of all the members of the population (Member

and Non-member) I have understate sampling technique.

SAMPLE SIZE 200 Customers

• 57


Sample area



Simple random selection sampling


I have taken the Statistical tool of percentage method to analysis and

interpretation of the collected data.


A random sample gives every unit of the population a known and non-zero

probability of being selected. Since random sampling implies equal

probability to every unit in the population, it is necessary that the

selection of the sample must be free from human judgment.

There is some confusion between the two terms ‘random sampling’ and

‘unrestricted’ random sampling. In the latter case, each unit in the

population has an equal chance of being selected in the sample. Such a

sample is drawn ‘with replacement’, which means that the unit selected at

each draw is replaced into the population before another draw is made
• 58
from it, ‘As such, a unit can be included more than once in the sample.

Most statically theory relates to ‘unrestricted random sampling. In order to

distinguish between these two sample. I.e. sample, without replacement

and sample with replacement, the terms ‘sample random sample’ and

‘unrestricted random sample’ are used. If the latter is devised in such a

manner that no unit can be included more than once, it will then be known

as the simple random sampling.

It may be noted that while both sample random sampling and unrestricted

random sampling give an equal probability to each unit of the population

for being included in the sample, there are other sample design too which

provide equal probability to the units. The process of randomness is the

very core of simple and unrestricted random sampling. The selection of a

sample must be free from bias, which can be ensured only when the

process of selection is free from human judgment.



The study was conducted by the means of personal interview with

respondents and the information given by them were directly recorded on


• 59
For the purpose of analyzing the data it is necessary to collect the vital

information. There are two types of data, this are-

• Primary Data

• Secondary data


Primary data can be collected through questionnaire. The questionnaire

can be classified into four main types.

• Structured non disguised questionnaire

• Structured disguised questionnaire.

• Non structured non disguised questionnaire

• Non –structured disguised questionnaire.

For my market study, I have sleeted structured non-disguised

questionnaire because my questionnaire is well structured, listing of

questions are in a prearranged order and where the object of enquiry is

revealed to the respondents.

To making a well-structured questionnaire, we have adopted three type of


• 60
• Open ended question

• Dichotomous questions

• Multiple choice questions

These types of questions are easy to understand and easy to give required



Secondary data means data that are already available i.e. they refer the

data which have already been collected and analyzed by someone else.

When the researcher utilizes secondary data, than he has to look into

various sources from where h e can obtain them, in this case he is

certainly not confronted with the problems that are usually associated

with the collection of original data. Secondary data may either be

published data or unpublished data. Usually published data are available


• Various publications of the central, state and local government;

• Various publications of foreign government or of international bodies

and their subsidiary organizational;

• Technical and trade journals;

• Books, magazines and newspapers;

• 61
• Reports and publications of various associations connected with

business san industry, stock exchanges etc.;

• Reports prepared by research scholars, universities, economists etc;

• Public records and statistics, historical document and other source of

published information.

The source of unpublished data are many; they may be found in diaries,

letters, unpublished biographies and autobiographies and also may be

available with scholars and research workers, trade associations, labor

because and other public private individuals and organization.


Questionnaire method is used in collection the data.

• 62

Processing & Analysis the collected data: - once the field survey is

over and questionnaire have been received, the next task is to aggregate

the data in a meaningful manner. A number of tables are prepare to bring

out the main characteristics of the data. The researcher should have a well

thought out framework for processing and analyzing data, and this should

be done prior to the collection. it includes the following activities—

(i) Editing: the first task in data processing is the editing. Editing is the

process of examining errors and omissions in the collected data and

making necessary corrections in the same.

(ii) Coding: coding is the procedure of classifying the answer to a

question into meaningful categories. Coding is necessary to carry out the

subsequent operations of tabulating and analyzing data. If coding is not

done, it will not be possible to reduce a large number of heterogeneous

responses into meaningful categories with the result that the analysis of

data would be weak and ineffective, and without proper focus.

• 63
(iii)Tabulation: tabulation comprises sorting of the data into different

categories and counting the number of cases that belong to each

category. The simplest way to tabulate is to count the number of

responses to one question. This is also called universal tabulation. The

analysis based on just one variable is obviously meager. Where two or

more variables are involved in tabulation, it is called bivariate or

multivariate tabulation.

(iv) Analysis: after the all three above steps, the most important step

is analysis of the data. Under this step, they can use the various

tools of the analysis such as Central Tendency, Dispersion,

Correlation co-efficient, Regression Analysis, Test of

Hypothesis etc.

• 64
Are you having an bank account?

10 30



1- 70%

From which bank you have account?

• 65
25 38
15 20
5 12


1- 38% Bank name of ICICI.

2- 12% Bank name of HDFC. 3- 20%Bank name of other.

Do you think that Bank is giving a good return?

• 66




10 32



1- 32%Bank giving a yes return.

2- 68%Bank giving a no return.

• 67
Are you planning to get account or loan from any



10 36




• 68
In which company are you looking to invest?

VALUES 12 15
IN 10
4 12



• 69
If get an opportunity in future would you like to be get

attached with ICICI Bank?

60 83
10 17


• 70

 ICICI Bank and HDFC bank has to improve its brand image, i.e.

it has to position itself in the minds of prospects in a better way

in comparisons to others.

 It should provide better career opportunities for the retention of

its potential advisors.

 Further it has to provide training to its recruited advisors by good

and efficient training methods, which might be a little bit

customized if needed.

 It should more emphasize in advertising, as it is the most

powerful tool to position ant brand in the mindsets of customers.

 It should provide online training and for those who are in jobs

and want to become advisors ICICI should provide evening

• 71
training classes, so that they can join the training after doing

there jobs.


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 children’s 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

• 72
strong support to the Bank and do sall possible efforts to generate

huge amount of profit to the company and for him.



 Kothari, C.R, Research Methodology, New delhi, Vikas Publishing

House PVT LTD. 2007

 ICICI and HDFC brochure of advisors Recruitment.

• 73


Name Mr./Mrs./Miss__________________________



Phone No. __________________________________

Email ______________________________________


a) Government Employee b) Private Employee

c) Self Employed d) Student E) Housewife

Your monthly household income

a) Less than 15000 b) 15001-25000 c)25001 and above

Please give some references of people who you know are

trading/investing in stocks:

1. _________________________________

2. _________________________________

• 74
Q1. Where do you open a account?


iii. HDFC

iv. Any other.

Q2. Which bank is more secure?


ii. HDFC

iii. Other

Q3. Which banks give more return?


ii. HDFC

iii. Other

Q4. Are you satisfied with services of bank?

i. Yes

ii. No

Q5. Your open account decisions are influenced by

• 75
i. Oneself

ii. Broker

iii. Market Research

iv. Friends/Relatives

v. An other

Q6. Are you satisfied with company services?

i. Yes ii. No

Q7. What are the factors which you considered before opening account

in a particular bank?

i. Financial Position

ii. Current Market Position

iii. Goodwill

iv. Future Prospects

v. Any others.

• 76