BANKING SCENARIO

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

Act of India, 1949 can be broadly classified into two major categories, non-
scheduled banks and scheduled banks. Scheduled banks comprise
commercial banks and the co-operative banks. In terms of ownership,
commercial banks can be further grouped into nationalized banks, the State
Bank of India and its group banks, regional rural banks and private sector
banks (the old/ new domestic and foreign). These banks have over 67,000
branches spread across the country.

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

major banks in 1969 and resulted in a shift from Class banking to Mass
banking. This in turn resulted in a significant growth in the geographical
coverage of banks. Every bank had to earmark a minimum percentage of
their loan portfolio to sectors identified as “priority sectors”. The
manufacturing sector also grew during the 1970s in protected environs and
the banking sector was a critical source. The next wave of reforms saw the
nationalization of 6 more commercial banks in 1980. Since then the number
of scheduled commercial banks increased four-fold and the number of bank
branches increased eight-fold.
After the second phase of financial sector reforms and liberalization of the
sector in the early nineties, the Public Sector Banks (PSB) s found it
extremely difficult to compete with the new private sector banks and the
foreign banks. The new private sector banks first made their appearance
after the guidelines permitting them were issued in January 1993. Eight new
private sector banks are presently in operation. These banks due to their late

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start have access to state-of-the-art technology, which in turn helps them to
save on manpower costs and provide better services.

During the year 2000, the State Bank Of India (SBI) and its 7 associates
accounted for a 25 percent share in deposits and 28.1 percent share in credit.
The 20 nationalized banks accounted for 53.2 percent of the deposits and
47.5 percent of credit during the same period. The share of foreign banks
(numbering 42), regional rural banks and other scheduled commercial banks
accounted for 5.7 percent, 3.9 percent and 12.2 percent respectively in
deposits and 8.41 percent, 3.14 percent and 12.85 percent respectively in
credit during the year 2000.

Current Scenario

The industry is currently in a transition phase. On the one hand, the PSBs,
which are the mainstay of the Indian Banking system are in the process of
shedding their flab in terms of excessive manpower, excessive non
Performing Assets (Npas) and excessive governmental equity, while on the
other hand the private sector banks are consolidating themselves through
mergers and acquisitions.

PSBs, which currently account for more than 78 percent of total banking
industry assets are saddled with NPAs (a mind-boggling Rs 830 billion in
2000), falling revenues from traditional sources, lack of modern technology
and a massive workforce while the new private sector banks are forging
ahead and rewriting the traditional banking business model by way of their
sheer innovation and service. The PSBs are of course currently working out

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challenging strategies even as 20 percent of their massive employee strength
has dwindled in the wake of the successful Voluntary Retirement Schemes
(VRS) schemes.

The private players however cannot match the PSB’s great reach, great size
and access to low cost deposits. Therefore one of the means for them to
combat the PSBs has been through the merger and acquisition (M& A)
route. Over the last two years, the industry has witnessed several such
instances. For instance, Hdfc Bank’s merger with Times Bank Icici
Bank’s acquisition of ITC Classic, Anagram Finance and Bank of
Madura. Centurion Bank, Indusind Bank, Bank of Punjab, Vysya Bank are
said to be on the lookout. The UTI bank- Global Trust Bank merger however
opened a pandora’s box and brought about the realization that all was not
well in the functioning of many of the private sector banks.

Private sector Banks have pioneered internet banking, phone banking,

anywhere banking, mobile banking, debit cards, Automatic Teller Machines
(ATMs) and combined various other services and integrated them into the
mainstream banking arena, while the PSBs are still grappling with
disgruntled employees in the aftermath of successful VRS schemes.

In a span of just four years, ICICI Bank has emerged as a consumer banking
behemoth. With a retail book of over Rs 56,000 crore (Rs 560 billion) and a
market share that is the envy of competition -- it has a share of over 30 per
cent -- ICICI Bank today has reached a commanding position.

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The bank boasts of the widest integrated technology platform in the country
and only a fourth of its business takes place at its branches.

Its legacy of non-performing assets (NPAs) -- for which it has been rated
below its peers -- is now almost history with net NPLs (non-performing
loans) down to 2 per cent.

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

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

This year consumer credit will grow by about Rs 40,000 crore (Rs 400
billion) from Rs 145,000 crore (Rs 1,450 billion) to Rs 185,000 crore (Rs
1,850 billion).

Last year, despite competition from small savings, incremental deposits

grew at 15 per cent and this year, too, the RBI (Reserve Bank of India) is
pegging deposit growth at 15 per cent. That's not too different from the
historic growth rate of 17 per cent over 30 years. I acknowledge that small
savings pose competition; they have a lot of arbitrage.

But, interestingly, mutual funds were not competitors. MFs, I find, are
competitors when interest rates decline; they don't have ability to compete
when rates rise.

Also insurance companies, which saw money because of the tax incentives,
could be under pressure with the incentives going.

Today, ICICI Bank, India has the largest market share and value among all
banks in retail or consumer financing. ICICI Bank is the largest issuer of
credit cards in India. It was the first bank to offer a wide network of ATM's
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and had the largest network of ATM's till 2005,before SBI caught up with it.

ICICI bank now is widely seen as a sophisticated bank able to take on many
global banks in the Indian market. The bank is expanding in overseas
markets. It has operations in the UK, Hong Kong, Singapore and Canada. It
acquired a small bank in Russia recently. It has tie-ups with major banks in
the US and China. The bank is aggressively targeting the NRI (Non Resident
Indian) population for expanding its business.

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

three years, our global business will contribute one-third of our book --
topline and bottomline. Today it's about 10-12 per cent. The NRI is a great
customer and the other is the Indian corporate who is globalising -- either in
the trade business or is setting up businesses abroad.

Our USP (unique selling proposition) is our technology; we can get him to
talk to his constituents online. The NRI is an interesting link because today
he has tremendous needs in India; he wants to remit money, buy a home,
especially the H1 visa guys. This year 10 per cent of our home loans will be
to NRIs.

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 CHAPTER – 1

INTRODUCTION

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INTRODUCTION

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

ICICI Limited was established by the Government of India in the 1960s as a
Financial Institution like Industrial Development Bank of India (IDBI) to
finance large industrial projects.

ICICI then, was not a bank and hence could not take retail deposits and was
not required to comply with Indian banking requirements for liquid reserves.
ICICI borrowed funds from various agencies like the World Bank, often at
concessional rates. These funds were deployed in large corporate loans.
However, the scenario changed drastically in1990s when ICICI founded a
separate legal entity and named it "ICICI Bank".ICICI Bank, as the name
would suggest, undertook normal banking operations like accepting
deposits, issuing credit cards, providing car loans etc. The experiment was
so successful that ICICI merged into ICICI Bank and this "reverse merger"
happened in 2002.

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

Corporation of India) "ICICI Bank is India's second largest Bank with
consolidated total assets of over Rs. 470,000 crores and networth of over Rs.
50,000 crores. The Bank's capital adequacy ratio of 15.6% is among the

7
highest levels of capital adequacy in large Indian banks and much higher
than the regulatory requirement of 9.0%. ICICI Bank made a profit after tax
of Rs. 4,158 crore (over US$ 850 million) in FY2008 and Rs. 3,014 crore
(US$ 619 million) in the nine months ended December 31, 2008."

ICICI Bank offers a wide range of banking products and financial services
to corporate and retail customers through a variety of delivery channels and
specialised subsidiaries and affiliates in the areas of investment banking, life
and non-life insurance, venture capital and asset management. ICICI Bank is
also the largest issuer of credit cards in India. Banks have also provide
internet banking, phone banking, anywhere banking, mobile banking, debit
cards, Automatic Teller Machines (ATMs) and combined various other
services and integrated them into the mainstream banking arena.

In a span of just four years, ICICI Bank has emerged as a consumer banking
behemoth. With a retail book of over Rs 56,000 crore (Rs 560 billion) and a
market share that is the envy of competition -- it has a share of over 30 per
cent -- ICICI Bank today has reached a commanding position. The bank
boasts of the widest integrated technology platform in the country and only a
fourth of its business takes place at its branches

The Bank is expanding in overseas markets and has the largest international
balance sheet among Indian banks. ICICI Bank now has wholly-owned
subsidiaries, branches and representatives offices in 18 countries, including
an offshore unit in Mumbai. This includes wholly owned subsidiaries in
Canada, Russia and the UK (the subsidiary through which the hisave savings
brand is operated), offshore banking units in Bahrain and Singapore, an
advisory branch in Dubai, branches in Belgium, Hong Kong and Sri Lanka,

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and representative offices in Bangladesh, China, Malaysia, Indonesia, South
Africa, Thailand, the United Arab Emirates and USA. Overseas, the Bank is
targeting the NRI (Non-Resident Indian) population in particular.

HISTORY

• 1955 The Industrial Credit and Investment Corporation of India

Limited (ICICI) was incorporated at the initiative of World Bank, the
Government of India and representatives of Indian industry, with the
objective of creating a development financial institution for providing
medium-term and long-term project financing to Indian businesses.

• 1994 ICICI established Banking Corporation as a banking subsidiary.

formerly Industrial Credit and Investment Corporation of India. Later,
ICICI Banking Corporation was renamed as 'ICICI Bank Limited'.
ICICI founded a separate legal entity, ICICI Bank, to undertake
normal banking operations - taking deposits, credit cards, car loans
etc.

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

was a Chettiar bank, and had acquired Chettinad Mercantile Bank (est.
1933) and Illanji Bank (established 1904) in the 1960s.

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• 2002 The Boards of Directors of ICICI and ICICI Bank approved the
reverse merger of ICICI, ICICI Personal Financial Services Limited
and ICICI Capital Services Limited, into ICICI Bank. After receiving
all necessary regulatory approvals, ICICI integrated the group's
financing and banking operations, both wholesale and retail, into a
single entity.

Also in 2002, ICICI Bank bought the Shimla and Darjeeling branches
that Standard Chartered Bank had inherited when it acquired
Grindlays Bank.
ICICI started its international expansion by opening representative
offices in New York and London.

• 2003 ICICI opened subsidiaries in Canada and the United Kingdom

(UK), and in the UK it established an alliance with Lloyds TSB. It
also opened an Offshore Banking Unit (OBU) in Singapore and
representative offices in Dubai and Shanghai.

• 2004 ICICI opens a rep office in Bangladesh to tap the extensive trade
between that country, India and South Africa.

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

bank with about US$4mn in assets, head office in Balabanovo in the
Kaluga region, and with a branch in Moscow. ICICI renamed the bank

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 ICICI Bank Eurasia. Also, ICICI established a branch in Dubai
International Financial Centre and in Hong Kong.

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

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

• 2007 ICICI amalgamated Sangli Bank, which was headquartered in

Sangli, in Maharashtra State, and which had 158 branches in
Maharashtra and another 31 in Karnataka State. Sangli Bank had been
founded in 1916 and was particularly strong in rural areas.

ICICI also received permission from the government of Qatar to open

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

• 2008 The US Federal Reserve permitted ICICI to convert its

representative office in New York into a branch.

ICICI also established a branch in Frankfurt.

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NATURE OF BUSINESS:

ICICI is a financial intermediary which brings together the savers and borrowers in the
economic system. It collects funds from surplus units and lends the same to those units
whose income exceeds its expenditure. In the pursuit of these objectives the ICICI Bank
Limited (ICICI Bank) offers products and services in the areas of commercial banking to
retail and corporate customers (both domestic and international), treasury and investment
banking and other products, such as insurance and asset management. Its commercial
banking operations for retail customers consist of retail lending and deposits, distribution
of third-party investment products and other fee-based products and services, as well as
issuance of unsecured redeemable bonds. ICICI Bank provides a range of commercial
banking and project finance products and services, including loan products, fee and
commission-based products and services, deposits and foreign exchange and derivatives
products to corporations, growth-oriented middle market companies and small and
medium enterprises.

ONWNERSHIP TYPE

JOINT STOCK COMPANY:

ICICI BANK LIMITED, is the joint stock company which is incorporated under the
Companies Act, 1956 and licensed as a bank under the Banking Regulation Act, 1949

12
ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and the
National Stock Exchange of India Limited and its American Depositary Receipts (ADRs)
are listed on the New York Stock Exchange (NYSE).

VISION

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

global bank.

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

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

This we hope to achieve by:

• Understanding the needs of customers and offering them superior

products and service
• Leveraging technology to service customers quickly, efficiently and
conveniently
• Developing and implementing superior risk management and
investment strategies to offer sustainable and stable returns to our
policyholders
• Providing an enabling environment to foster growth and learning for
our employees
• And above all, building transparency in all our dealings

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The success of the company will be founded in its unflinching commitment
to 5 core values -- Integrity, Customer First, Boundaryless, Ownership and
Passion. Each of the values describe what the company stands for, the
qualities of our people and the way we work.

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

where we can play a significant role in redefining and reshaping the sector.
Given the quality of our parentage and the commitment of our team, there
are no limits to our growth.

MISSION

We will leverage our people, technology, speed and financial capital to:

• be the banker of first choice for our customers by delivering high

quality, world-class products and services.
• expand the frontiers of our business globally.
• play a proactive role in the full realisation of India’s potential.
• maintain a healthy financial profile and diversify our earnings across
businesses and geographies.
• maintain high standards of governance and ethics.
• contribute positively to the various countries and markets in which we
operate.
• create value for our stakeholders
• Provide the social facilities to the society

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IN order to build some brand equity by doing social service, ICICI Bank has
decided to undertake a MISSION for reducing low birth weight incidence at
the village level.

Undertaken by ICICI Bank's Social Initiatives Group, the bank has decided
to identify effective and scalable strategies for delivering the services
required to impact female nutritional status to tackle the incidence of low
birth babies.

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

says, ``This is going to be a significant MISSION supported by the bank and
the aim to understand whether a suitably trained health worker working with
the public health system and the integrated child development scheme can
provide quality services to impact low birth incidence at the village level.''

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

implemented through a partnership between the Department of Health,
Government of Jharkhand, Krishi Gram Vokas Kendra(KGVK) and Care,
both of whom are NGOs based in Jharkhand and the Child in Need Institute
(CINI), an NGO based in West Bengal.

Adds the ICICI Bank official, ``ICICI Bank needs to participate in the all
round development of the country by focusing on some of its fundamental
problems.

It seeks to perform this role primarily as a funding agency, through its Social
Initiatives Group.''

15
ICICI Bank's Social Initiative Group's (SIG) mission is ``to identify and
support initiatives designed to improve the capacities of the poorest of the
poor to participate in the larger economy.''

The group seeks to achieve its mission by supporting initiatives that are cost-
effective, capable of large-scale replication and have the potential for near
and long-term impact.

``ICICI Bank believes in strengthening or supplementing existing systems

rather than investing in parallel structures.

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

partners,'', adds the bank official.

In the past, ICICI Bank has undertaken projects in the area of elementary
education and micro financial services.

16
BOARD OF DIRECTORS

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

Mr. Madhabi Puri Buch --------- Executive director

Mr. P M Sinha ---------- Director

Mr. M K Sharma ---------- Director

Mr. Sonjoy Chatterjee ----------- Executive director

Mr. Anupam Puri ----------- Director

Mr. T S Vijayan ----------- Director

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

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

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

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

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

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

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

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

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

17
REGISTERED OFFICE

ICICI Bank Limited

Registered Office: Landmark, Race Course Circle, Vadodara 390 007.
Corporate Office: ICICI Bank Towers, Bandra Kurla Complex, Mumbai 400
051.

SUBSIDIARIES

18
ICICI SECURITIES

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

It offers corporate finance services, including advisory services related to
joint ventures, mergers, acquisitions, divestitures, spin-offs, and leveraged
buyouts; equity capital markets services, such as initial public offerings,
rights offerings, convertible offerings, and private placement and
international offerings for unlisted and listed entities; private equity/venture
capital services; and infrastructure advisory services. The company also
provides services related to fixed income and money markets, which include
designing instruments, pricing, structuring, documentation, and placing the
issue with institutional investors; debt trading, including corporate bond
trading and derivatives trading; and debt research services. In addition,
ICICI Securities provides research, sale, and trading services related to
equities markets. Further, the company deals in securities markets
transactions in the United States, as well as provides research and
investment advice to the U.S. investors. Additionally, it offers corporate
advisory services in the United Kingdom and Singapore.

Today ICICI Securities Ltd is the largest equity house in the country
providing end-to-end solutions (including web-based services) through the
largest non-banking distribution channel so as to fulfill all the diverse needs
of retail and corporate customers. ICICI Securities (I-Sec) has a dominant
position in its core segments of its operations - Corporate Finance including

19
Equity Capital Markets Advisory Services, Institutional Equities, Retail and
Financial Product Distribution.

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

second to none, we have a formidable reputation within the industry. Today
ICICI Securities is among the leading Financial Institutions both on the
institutional as well as retail side.

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

ICICI Securities Inc., the stepdown wholly owned US subsidiary of the
company is a member of the National Association of Securities Dealers, Inc.
(NASD). As a result of this membership, ICICI Securities Inc. can engage in
permitted activities in the U.S. securities markets. These activities include
Dealing in Securities and Corporate Advisory Services in the United States
and providing research and investment advice to US investors.

ICICI Securities Inc. is also registered with the Financial Services Authority,
UK (FSA) and the Monetary Authority of Singapore (MAS). The company
is based in Mumbai, India. ICICI Securities, Ltd. operates as a subsidiary of
ICICI Bank Limited.

20
ICICI PRUDENTIAL LIFE INSURANCE

ICICI Prudential Life Insurance Company is a joint venture between ICICI

Bank - one of India's foremost financial services companies-and Prudential
plc - a leading international financial services group headquartered in the
United Kingdom. Total capital infusion stands at Rs. 47.80 billion, with
ICICI Bank holding a stake of 74% and Prudential plc holding 26%.

We began our operations in December 2000 after receiving approval from

Insurance Regulatory Development Authority (IRDA). Today, our nation-
wide team comprises of 2099 branches (inclusive of 1,116 micro-offices),
over 276,000 advisors; and 18 bancassurance partners.

ICICI Prudential is the first life insurer in India to receive a National Insurer
Financial Strength rating of AAA (Ind) from Fitch ratings. For three years in
a row, ICICI Prudential has been voted as India's Most Trusted Private Life
Insurer, by The Economic Times - AC Nielsen ORG Marg survey of 'Most
Trusted Brands'. As we grow our distribution, product range and customer
base, we continue to tirelessly uphold our commitment to deliver world-
class financial solutions to customers all over India.

21
ICICI VENTURE

ICICI Venture is one of the largest and most successful private equity firms
in India with funds under management in excess of USD 2 billion.

ICICI Venture, over the years has built an enviable portfolio of companies
across sectors including pharmaceuticals, Information Technology, media,
manufacturing, logistics, textiles, real estate etc thereby building sustainable
value.

It has several “firsts” to its credit in the Indian Private Equity industry.
Amongst them are India’s first leveraged buyout (Infomedia), the first real
estate investment (Cyber Gateway), the first mezzanine financing for a
acquisition (Arch Pharmalabs) and the first ‘royalty-based’ structured deal in
Pharma Research & Development (Dr Reddy’s).

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

financial services group in India.

22
ICICI LOMBARD

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

between two major organizations - ICICI Bank Limited and Fairfax
Financial Holdings Limited, a Canada based company. They have a share
amount of 74:26. ICICI Lombard has received approvals from various
pioneer organizations of finance world.

This ISO 9001: 2000 certified company is the first general insurance
company in India. ICICI Lombard General Insurance Company Limited
offers the best insurance coverage and provides extensive customer care
services. With its registered office at Mumbai, ICICI Lombard is spread all
over the country. This insurance company has its office at 65 different
locations of India.
ICICI Lombard is the leading private general insurance company in India. It
is known for its simple and quick documentation. Its claim to fame is its
extremely fast mode of settlement. Online policies are offered almost
instantly. The product line of ICICI Lombard General Insurance Company
Limited is extensive and covers almost all the fields.

The security system of the data transfer is made tight by 128-bit encryption.
It is the first company to have online interface for providing digitally signed
documents.

23
This Insurance Company has been honored with numerous prestigious
awards. It received the following awards:

• Economic Times Avaya Global Connect Customer Responsiveness

Award 2006
• Best Housing Insurance in the Smart Living Awards by 360 degrees, a
Times of India Group subsidiary, in Nov 2006
• Gold Shield for "Excellence in Financial Reporting" by the ICAI
(Institute of Chartered Accountants of India), 2006
• General Insurance Company of the Year at the 10th Asia Insurance
Industry Awards

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

• Health Insurance
• Home Insurance
• Motor Insurance
• Overseas Travel insurance
• Student Medical Insurance
• Domestic Travel Insurance
• Fire Insurance
• Marine Insurance
• Industrial Insurance
• Corporate Insurance
• Liability Insurance
• Credit Insurance

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• Shop Insurance

CHAPTER- 2

PRODUCTS

25
PRODUCTS OF ICICI BANK

ICICI Bank offers a wide range of banking products and financial

services to dynamic.) ICICI Bank is also the largest issuer of credit
cards in India. corporate and retail customers through a variety of
delivery channels and specialised subsidiaries and affiliates in the
areas of investment banking, life and non-life insurance, venture
capital and asset management. (These data are

PRODUCTS OF ICICI BANK

TYPES OF ACCOUNTS

1. SAVING ACCOUNT

A Savings Account for everyone with a host of convenient features and banking
channels to transact through. So now you can bank at your convenience, without the
stress of waiting in queues. We service savings accounts with 8 to 8 banking and ‘out of
branch’ banking

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2. LIFE PLUS SENIOR CITIZEN SAVING ACCOUNT

We understand that a Savings Account needs to do more after you reach the age of seniority;
we understand your concerns for safety and security. We have an ideal Savings Bank Service
for those who are 60 years and above. The Senior Citizen Services from ICICI Bank has several
advantages that are tailored to bring more convenience and enjoyment in your life.

3. YOUNG STAR SAVING ACCOUNT

It's really important to help children learn the value of finances and money management
at an early age. Banking is a serious business, but we make banking a pleasure and at the
same time fun. Children learn how to manage their personal finances.

27
4. RECURRING DEPOSIT ACCOUNT

When expenses are high, you may not have adequate funds to make big investments. An
ICICI Bank Recurring Deposit lets you invest small amounts of money every month
that ends up with a large saving on maturity. So you enjoy twin advantages- affordability
and higher earnings

4.FIXED DEPOSIT ACCOUNT

Safety, Flexibility, Liquidity and Returns!!!!

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

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LOANS

1.HOME LOANS

The No. 1 Home Loans Provider in the country, ICICI Bank Home Loans offers some
unbeatable benefits to its customers - Doorstep Service, Simplified Documentation and
Guidance throughout the Process. It's really easy !

2.PERSONAL LOAN

If you're looking for a personal loan that's easy to get, your search ends here. ICICI
Bank Personal Loans are easy to get and absolutely hassle free. With minimum
documentation you can now secure a loan for an amount upto Rs. 15 lakhs.

29
3.CAR LOAN

The most preferred financier for car loans in the country. Network of more than 1000
channel partners in over 200 locations. Tie-ups with all leading automobile manufacturers
to ensure the best deals.

4.COMMERCIAL VEHICAL LOAN

Range of services on existing loans & extended products like funding of new vehicles,
refinance on used vehicles, balance transfer on high cost loans, top up on existing loans,
Xtend product, working capital loans & other banking products.

30
5.FARM EQUIPMENT LOAN

Preferred financier for almost all leading tractor manufacturers in the country. Flexible
repayment options in tandem with the farmer's seasonal liquidity. Monthly, Quarterly and
Half-yearly repayment patterns to choose from. Comfortable repayment tenures from 1
year to 9 years.

6.BUSINESS INSTALMENT LOAN

Business Installment Loan (BIL) helps the entities take a giant strides by fulfilling their
business requirements, be it working capital requirement, business expansion or to grab
that once in a lifetime business opportunity.

31
CARDS

1.CREDIT CARD

Credit Cards give you a smart way to shop, and offer you flexibility and convenience in
managing your finances. ICICI Bank credit cards provide a host of exciting offers and
benefits such as low interest rates, rewards programs, and a high credit and cash limit.
We offer different types of credit card to suit the different needs and requirements for
added features.

2.TRAVEL CARD

32
Presenting ICICI Bank Travel Card. The Hassle Free way to Travel the world. Traveling
with US Dollar, Euro, Pound Sterling or Swiss Francs; Looking for security and
convenience; take ICICI Bank Travel Card. Issued in duplicate. Offers the Pin based
security. Has the convenience of usage of Credit or Debit card.

3.DEBIT CARD

The ICICI Bank Debit Card is a revolutionary form of cash that allows customers to
access their bank account around the clock, around the world. The ICICI Bank Debit
Card can be used for shopping at more than 3.5 Lakh merchants in India and 24 million
merchants worldwide.

4.COMMERCIAL CARD

33
ICICI Bank Commercial Cards have been designed as payment solutions for large &
mid-sized organizations. A widely accepted concept internationally, Commercial Cards
help to better streamline payment processes & thus increase efficiencies.

5.MERCHANT SERVICE

Give your customer quick and convenient ways to make payments. with ICICI bank's two
payment acceptance solution, enjoy business like never before. POS Machine at your
retail establishment will assist you to accept cards. Payseal, online payment gateway will
make e-commerce more convenient, easy and secure on internet... your business can only
get even bigger and better

34
LIFE INSURANCE

1.INVESTMENT & SAVING PLANS

2.RETIREMENT PLANS

35
3.CHILD PLANS

1.INVESTMENT & SAVING PLANS

Endowment policies are a good way of putting aside your savings today for a future goal
- whether it's to buy a house in India or fund your entrepreneurial vision. Our savings-
oriented policies are designed to make your savings grow and have them available to you
at the end of a fixed number of years or through the term of the plan.

LifeTime II - A complete market-linked insurance plan that adapts itself to your changing
protection and investment needs, throughout a lifetime.

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

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

36
Premier Life - A market linked insurance plans that meets your Investment and
Protection needs.

2.RETIREMENT PLANS

Many of us picture ourselves enjoying the fruits of our labour after retirement - going on
a dream vacation, or helping our child's career take wing. Financing all this will depend
on our personal savings and investments, so its important to save for the future from
today. Our retirement plans are designed to help you systematically save, so that you can
enjoy all the things you have dreamed of when you retire.

LifeTime Pension II - A regular premium linked deferred pension plan that gives you the
freedom to choose the amount of premium, and invest in market-linked funds, to generate
potentially higher returns.

37
3.CHILD PLANS

As a responsible parent, you want to ensure a hassle-free, successful life for your child.
However, life is full of uncertainties and even the best-laid plans can go wrong. SmartKid
Education Plans are designed to provide flexibility and to safeguard your child's future
education and lifestyle, taking all possibilities into account.SmartKid Child Plans has a
bouquet of three products which can help you secure your child's education.

- Unit-linked Regular Premium

- Unit-linked Single Premium

- Regular Premium SmartKid

38
DEMAT SERVICE

Feature of demat service:

E-Instructions: You can transfer securities 24 hours a day, 7 days a week through
Internet & Interactive Voice Response (IVR) at a lower cost. Now with "Speak to
transfer", you can also transfer or pledge instructions through our customer care officer.

Consolidation Demat Account: Dematerialise your physical shares in various holding

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

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

39
Corporate Benefit Tracking: Track your dividend, interest, bonus through your account
statement.

CONTD…….

Mobile Request: Access your demat account by sending SMS to enquire about
Holdings, Transactions, Bill & ISIN details.

Mobile Alerts: Receive SMS alerts for all debits/credits as well as for any request which
cannot be processed.

• Dedicated customer care executives specially trained at our call centre, to handle
all your queries.

• Countrywide network of over 300 branches, you are never far from an ICICI
Bank Demat Services outlet.

40
TARGET CUSTOMERS

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

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

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

aspect of this strategy was the emphasis on technology.

BRANCHES

Bank has total assets of about USD 100 billion (at the end of March 2008), a
network of over 1,399 branches, 22 regional offices and 49 regional
processing centres, about 4,485 ATMs (at the end of September 2008), and
24 million customers (at the end of July 2007).

41
COMPETITORS

Top ICICI Bank Competitors are:

• STATE BANK OF INDIA

• PUNJAB NATIONAL BANK

• CANARA BANK

STATE BANK OF INDIA

Managing Director and Group Executive (Corporate Banking):

Tara Shankar (T.S.) Bhattacharya

Chairman:O. P. Bhatt

Industry Information

Sector: Financial

Industry: Foreign Regional Banks

42
State Bank of India is the nation's largest and oldest bank. Tracing its roots
back some 200 years to the British East India Company (and initially
established as the Bank of Calcutta in 1806), the bank operates more than
15,000 branches within India, where it also owns majority stakes in six
associate banks. State Bank of India (SBI) has more than 80 offices in nearly
35 other countries, including multiple locations in the US, Canada, and
Nigeria. The bank has other units devoted to capital markets, fund
management, factoring and commercial services, credit cards, and brokerage
services. The Reserve Bank of India owns about 60% of State Bank of India.

Contact Information
Address: Central Office, 8th Fl., Madame Cama Road
Mumbai 400021, India
Phone: +91-22-2288-3888
Fax: +91-22-2285-5348

PUNJAB NATIONAL BANK

Chairman and Managing Director: Satish C. Gupta

Industry Information:

Sector: Financial

Industry: Foreign Regional Banks

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

with some 4,500 locations. The financial institution offers services in
personal and corporate banking, including industrial, agricultural, and export

43
finance, as well as international banking. Its personal lending services
include loans for housing, autos, and education. PNB's diverse client list
includes Indian conglomerates, small and mid-sized businesses, non-resident
Indians, and multinational companies. The bank was established in Lahore
in 1895 -- before the country was partitioned into India and Pakistan in
1947.
Contact Information
Address: 7 Bhikaji Cama Place
New Delhi 110066, India
Phone: +91-11-2617-6297

CANARA BANK
Chairman and Managing Director: A. C. Mahajan
Industry Information:
Sector: Financial
Industry: Foreign Regional Banks

Canara Bank has a can-do attitude about banking in India. One of India's
largest banks, Canara Bank (also known as CanBank) has a network of more
than 2,500 branches throughout India and branches in Hong Kong and
London. All of Canara Bank's branches -- including those located in rural
areas -- are computerized, in a country where it is not a given that banks can
make such a claim. (The bank considers 30% of its branches to be located in
rural areas.) The modernization of all branches allows the bank to offer its
customers networked ATMs, telebanking, internet banking, and debit card

44
services. Other services include asset management and factoring. The
financial institution is 73% owned by India's government.

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

45
MARKET SHARE

Advances Market
FY04 (Rs bn) share
SBI 1,955 22.7%
ICICI Bank 631 7.3%
Canara Bank 476 5.5%
PNB 472 5.5%
Bank of India 458 5.3%
Bank of Baroda 356 4.1%
HDFC Bank 177 2.1%
Standard Chartered 162 1.9%
Total 4,687 54.4%

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

46
POSITIONING

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

To support its technology-focused strategy, ICICI Bank needed a robust
technology platform that would help it achieve its business goals. After an
intense evaluation of several global vendors, ICICI Bank identified Infosys
as its technology partner and selected Finacle, the universal banking solution
from Infosys, as its core banking platform. An open systems approach and
low Total Cost of Ownership (TCO) were some of the key benefits Finacle
offered the bank. Unlike most banks of that era, ICICI Bank was automated
from day one, when its first branch opened in the city of Chennai. ICICI
Bank was set up when the process of deregulation and liberalization had just
begun in India, and the Reserve Bank of India (India’s central bank) had
paved the way for private players in the banking sector, which at that time
was dominated by state-owned and foreign banks. Serving a majority of the
country’s populace, state-owned banks had a large branch network, with
minimal or no automation and had little focus on service. Foreign banks, on
the other hand, deployed high-end technology, had innovative product
offerings, but had a very small branch network that serviced only corporates
and individuals with high net-worth.

47
ADVERTISEMENT

Shahrukh Khan is ICICI Bank's brand ambassador globally

Shahrukh Khan.

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

48
 CHAPTER-3

FINANCIAL
INFORMATION

49
STOCK EXCHANGE

ICICI Bank's equity shares are listed in India on Bombay Stock Exchange
and the National Stock Exchange of India Limited and its American
Depositary Receipts (ADRs) are listed on the New York Stock Exchange
(NYSE).

Lists of Exchanges

Bangalore Stock Exchange Ltd.

Calcutta Stock Exchange Association Ltd.

Cochin Stock Exchange Ltd

Delhi Stock Exchange Assoc. Ltd

Inter-connected Stock Exchange of India

Ludhiana Stock Exchange Assoc. Ltd.

Madras Stock Exchange Ltd.,

National Stock Exchange of India Ltd.

Over The Counter Exchange Of India Ltd

The Stock Exchan of Mumbai assoc Ltd

Uttar Pradesh Exchange Assoc Ltd.

50
WEIGHTED INDEX

Weight in Weight in Promoter

Company Variance
Sensex Nifty holdings (%)
Infosys
8.66 3.79 4.87 16.49
Technologies
Reliance
17.41 12.95 4.46 49.03
Industries
ICICI Bank 5.74 2.13 3.61 0
Larsen &
5.61 2.31 3.3 0
Toubro
HDFC 5.41 2.37 3.04 0

ITC 6.47 3.44 3.03 0

HDFC Bank 5.08 2.22 2.86 19.38

Wipro 1.06 1.97 -0.91 79.32

DLF 0.75 1.85 -1.1 88.55

ONGC 4.63 8.6 -3.97 74.14

2.98 7.4 -4.42 89.5

NTPC

51
CAPITAL STRUCTURE

Paid Up Paid Up
From To Class Of Authorized Issued Paid Up
Shares Face
Year Year Share Capital Capital Capital
(Nos) Value
Equity
2007 2008 1,275.00 1,112.69 1112687495 10 1,112.69
Share
Equity
2006 2007 1,000.00 899.27 899266672 10 899.27
Share
Equity
2005 2006 1,000.00 153.84 153844503 10 153.84
Share
Equity
2005 2006 1,000.00 889.82 889823901 10 889.82
Share
Equity
2004 2005 1,550.00 616.39 350000000 10 350.00
Share
Equity
2004 2005 1,550.00 616.39 616391905 10 616.39
Share
Equity
2003 2004 1,550.00 613.02 613021301 10 613.02
Share
Equity
2001 2002 300.00 220.36 220358680 10 220.36
Share
Equity
2000 2001 300.00 196.82 196818880 10 196.82
Share
Equity
1999 2000 300.00 196.82 196818880 10 196.82
Share
Equity
1997 1999 300.00 165.00 165000700 10 165.00
Share
Equity
1995 1997 300.00 150.00 150000700 10 150.00
Share
Equity
1994 1995 300.00 150.00 150000000 7 105.00
Share
Equity
1994 1995 300.00 150.00 700 10 -
Share

52
BALANCE SHEET(2006-2008)

Balance Sheet (Rs. in millions)

March- March- March-
Liabilities 2008 2007 2006
(12 Months) (12 Months) (12 Months)
Share Capital 14,626.79 12,493.44 12,398.35
Reserves & Surplus 453,575.31 234,139.21 213,161.57
Net Worth (1) 468,202.10 246,632.64 225,559.92
Secured Loans (2) 656,484.34 512,560.26 385,219.14
Unsecured Loans (3) 2,444,310.50 2,305,101.86 1,650,831.71
Total
Liabilities(1+2+3) 3,568,996.94 3,064,294.77 2,261,610.77

March- March- March-

Assets 2008 2007 2006
(12 Months) (12 Months) (12 Months)
Fixed Assets
Gross Block 70,360.04 62,985.63 59,685.65
(-) Acc. Depreciation 29,271.06 23,751.40 19,878.54
Net Block (A) 41,088.98 39,234.23 39,807.12
Capital Work in
0.00 1,896.63 1,479.42
Prgs. (B)
Investments (C) 1,114,543.42 912,578.42 715,473.94
Current Assets, Loans & Advs.
Inventories 0.00 0.00 0.00
Sundry Debtors 0.00 0.00 0.00
Cash And Bank 380,411.29 371,213.25 170,402.25
Loans And Advances 2,461,907.08 2,121,658.60 1,586,726.82
(i) 2,842,318.37 2,492,871.85 1,757,129.06
Current Liab. & Provs.
Current Liabilities 400,673.68 358,817.11 238,016.23
Provisions 28,280.15 23,469.25 14,262.55
(ii) 428,953.83 382,286.36 252,278.78
Net Curr. Assets (i -
2,413,364.55 2,110,585.49 1,504,850.28
ii) (D)
Misc. Expenses (E) 0.00 0.00 0.00
Total Assets
3,568,996.94 3,064,294.77 2,261,610.77
(A+B+C+D+E)

Quarterly Results (Rs. in Millions)

53
 Quarterly Results (Rs. in Millions)
December2008 September2008 December2007
[3 Quarter] [2 Quarter] [3 Quarter]
Sales Turnover 78360.80 78349.80 79117.70
Other Income 25145.40 18773.30 24265.90
Total Income 103506.20 97123.10 103383.60
Total Expenditure 17341.10 17400.40 21276.10
Operating Profit 86165.10 79722.70 82107.50
Interest 58456.70 56873.60 59520.80
Gross Profit 27708.40 22849.10 22586.70
Depreciation 0.00 0.00 0.00
Tax 4909.90 3471.70 2681.20
ReportedPAT 12721.50 10142.10 12302.10
Equity Capital 11132.90 11132.90 11122.70
Extra Ordinary Items 0.00 0.00 0.00
Adjusted Profit After Extra Ordinary Item 12721.50 10142.10 12302.10
Book Value 417.43 417.43 0.00
EPS 11.43 9.11 11.06
Dividend 0.00 0.00 0.00

Quarterly Results (in %)

Quarterly Results (in %)

54
 % Change over % Change over
September, 2008 December, 2007
Sales Turnover 0.01 -0.96
Other Income 33.94 3.62
Total Income 6.57 0.12
Total Expenditure -0.34 -18.49
Operating Profit 8.08 4.94
Interest 2.78 -1.79
Gross Profit 21.27 22.68
Depreciation 0.00 0.00
Tax 41.43 83.12
ReportedPAT 25.43 3.41
Equity Capital 0.00 0.09
Extra Ordinary Items 0.00 0.00
Adjusted Profit After Extra Ordinary Item 25.43 3.41
Book Value 0.00 0.00
EPS 25.47 3.35
Dividend 0.00 0.00

RATIO ANALYSIS

Ratios
Profitability March- 2008March- 2007March- 2006
55
Ratios % (12 months) (12 months) (12 months)
Operating Profit 14.45 13.33 18.66
Margin
Gross Profit 12.99 11.41 15.10
Margin
Net Profit Margin 10.51 10.81 14.12
Turnover Ratios
Inventory 0.00 0.00 0.00
Turnover Ratio
Debtor Turnover 0.00 0.00 0.00
Ratio
Fixed Asset 5.61 4.52 2.93
Turnover Ratio
Solvency Ratio
Current Ratio 0 .73 0 .62 0 .62
Debt Equity Ratio 5.22 9.35 7.32
Interest Covering 0 .24 0 .23 0 .34
Ratio
Performance Ratio %
Return On 1.95 1.48 1.74
Investment
Return On 8.94 12.79 11.43
Networth
Dividend Yield 33.12 33.89 34.08

SHARE HOLDING PATTERN

56
Holder's Name No of Shares % Share Holding

Directors 914352 0.08%

OtherCompanies 52612667 4.73%

ForeignNRI 5389371 0.48%

ForeignOcb 50060 0.00%

ForeignOthers 10529566 0.95%

ForeignInstitutions 409979962 36.83%

ForeignIndustries 3790 0.00%

Other
304852852 27.38%
s
NBanksMutualFunds 88067601 7.91%

GeneralPublic 82265782 7.39%

FinancialInstitutions 158584639 14.25%

57
 CHAPTER-4

HUMAN RESOURCES

&

HR POLICIES

58
ORGANITION STRUCTURE
An organization structure as an integral part of a system or a group. It has to accept the
discipline and regulatory ethics of the system/group. It has also to compete within the
group and strive to excel in its performance. An organization structure also operates with
in a social, economic and political environment

We believe that the structure of an organization needs to be dynamic, constantly evolving

and responsive to changes both in the external and internal environments. Our
organizational
structure is designed to support our business goals, and is flexible while at the same time
ensuring effective control and supervision and consistency in standards across business
groups.

59
NUMBER OF EMPLOYEES

Total number of employees in the organition are 25479

60
HR POLICIES

HR systems and policies are thereby designed to unleash the latent

capability of our people by fostering a continuous learning and performance
based culture where our people have the opportunity to grow and succeed
and realize their true potential while delivering high quality services.

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

 Achieve organizational and business goals with firm belief that "Our

Employees are our Future".

 Have empowered and accountable employees to take decisions in

response to emerging challenges and opportunities in a competitive

environment.

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

commitment to excellence

61
RECRUITMENT PROCESS

In ICICI Bank RECRUITMENT PROCESS at all levels , we have carried out an in-
depth study of the competencies required to succeed in ICICI Bank which are called the
ICICI Bank DNA anchors. As per our research, the DNA anchors which indicated
success at the entry level in ICICI Bank are:

• Customer first
• Passion
• Dynamism
• Compliance with conscience

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

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

The tests are designed to assess basic aptitude of candidates including numerical
comprehension, verbal comprehension, logical reasoning and basic checking abilities.
These are important skills for the role of an entry-level manager and people who do well
in these tests tend to do well in their jobs at ICICI Bank. The total time taken in this
exercise is 55 minutes.

b.Occupational Personality Questionnaire.

Applicants are also required to complete the Occupational Personality Questionnaire

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

62
SELECTION PROCEDURE

The selection process at all levels in ICICI Bank, they have carried out an in-depth study
of the competencies required to succeed in ICICI Bank. As per ICICI research, the
competencies which indicated success at the entry level in ICICI Bank are:
Drive for results
Process Orientation
Interpersonal Effectiveness
Analytical Thinking
Innovation &
Team Effectiveness

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

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

The Mental Ability Test to find a fair and objective assessment of candidates’ skills in the
areas of verbal reasoning, numerical reasoning & diagrammatic reasoning. These are
important skills for the role of an entry level manager and people who do well in these
tests tend to do well in their jobs at ICICI Bank. The total time taken in this exercise is 2
hours with each of the three sections lasting 40 minutes.

Candidates (at all levels regardless of the number of years of work experience) are also
required to complete the Occupational Personality Questionnaire (OPQ ) before they
appear for the interview, the results of which are integrated into ICICI interview
process.

63
SWOT ANALYSIS

OF

ICICI BANK

64
SWOT ANALYSIS:

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

overall Strengths, Weaknesses, Threats and opportunities
leading to gauging the competitive potential of the
company.

The SWOT Analysis enables a company to recognize its

market standing and adopt strategies accordingly. Here
SWOT analysis of ICICI bank is made to understand the
positioning of the bank better:

65
STRENGTHS

1. BRAND NAME: ICICI Bank has earned a reputation in the market for extending
quality services to the market vis-Ã -vis its competitors. It has earned a strong Brand
name in banking in a very short span of time.

2. MARKET SHARE: ICICI Bank has the largest market share of 34% in the IT & ITES
industry in Hyderabad according to our survey (within the limitation of the sample size.)

3. HUGE NETWORK: ICICI Bank has the highest number of linked branches in the
country. The bank operates through a network of 450 BRANCHES AND over 1800
ATMs across India, thus enabling them to serve customer in better way.

4. DIVERSIFIED PORTFOLIO: ICICI Bank has all the products under its belt, which
help it to extend the relationship with existing customer. ICICI Bank has umbrella of
products to offer their customers, if once customer has relationship with the bank. Some
Products, which ICICI Bank is offering are:
• Retail Banking
• Business Banking
• Merchant Establishment Services (EDC Machine)
• Personal loans & Car loans

66
• Demat Services with E-Broking
• Mutual Fund (ICICI Bank is the Distributor of all Mutual Fund)
• Insurance
• Housing Loans

5. SALARY ACCOUNT: One very interesting thing that we have observed in our survey
is that ICICI is having an edge over other banks in case of Salary Account. Most of the
companies are having their Salary Account with ICICI even if their Current Account is
with any other Bank. This is mainly because of the huge network of ATMs and branches
of ICICI.

6. WORKING HOURS: ICICI is the only bank which is having its working hours from 8
to 8 which is one of the major strength of ICICI Bank with respect to IT & ITES
Industry. As most of the IT & ITES companies are global players and their Parent
company is in US, so they have to work according to their office time. Thus some have
their Office time in the morning and some have it in the evening so if the working hour of
the bank is 8 to 8 it is very convenient for them.

7. TREASURY DEPARTMENT: ICICI is the only bank which is having its treasury
department especially for Hyderabad Customers. So customers can get the best rates for
foreign exchange.

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

its products. Recent Endorsement of its product by AMITABH BAHCHAN proves the
same. This gives ICICI an edge over other banks.

67
9. TECHNOLOGY: From its inception, ICICI Bank has adopted a policy of selecting
internationally proven and specialized Packaged Systems for its technology. ICICI
bank’s technology platform has been acknowledged globally as one of the best in
terms of robustness, flexibility and cost efficiency. ICICI Bank is in a position to leverage
this platform to further build cost and service advantage.

WEAKNESS

1. TRANSACTION COST: ICICI Bank charges high cost for its transactions. Through
our data analysis we have find out that most of the small companies prefer nationalized
banks only because of this cost factor. Also the group has found out that there are
companies which are going for multi bank system i.e. they are using only those facilities
of ICICI Bank which are provided at cheaper rates (read Salary Account) and for other
services they are going to nationalize banks and MNCs (read Forex). So there exists a
huge potential for ICICI Bank if they are ready to make their transaction cost flexible.

2. FOCUS ONLY ON HIGH END CUSTOMERS: The bank targets only the top bracket
of clients and does not cater to the needs of small customers. Due to this reason the bank
may sometimes loose good clients.

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

lending. Mainly to IT & ITES companies Bank do not provide loan as these companies
are not having collaterals so bank hesitate in giving loans to them. Because of this policy
companies prefer nationalized banks and ICICI Bank in turn sometimes loose potential
customers.

4. LITTLE PRESENCE OUTSIDE INDIA: ICICI Bank is having little presence Outside
India, because of which companies are preferring MNC Bank, mainly Citibank. So if
ICICI Bank tries to emerge outside India then it has a huge potential of customers.

68
5. POOR CUSTOMER CARE/SERVICE: With its aggressive marketing ICICI Bank is
rapidly increasing its customer base. They are not however, increasing the number of
employees accordingly. This is leading to deterioration of the standard of customer
service.

OPPORTUNITIES

1. NEW IT & ITES COMPANIES: IT & ITES sector is on a boom in the Indian market
context, with new companies mushrooming in the market; it opens the door for ICICI
bank to capture the huge untapped market.

2. Dissatisfied Customers of Other Banks: The group from its survey and analysis of IT
companies have found out that there are many companies which are not satisfied with its
current bank, so ICICI with its superior service quality and long working hours can
capture those customers.

3. Remittances: From the analysis group has also found out that ICICI bank has very little
presence as far as the EEFC account is concerned. Companies prefer to bank with MNCs
(which have greater presence in the foreign countries) and nationalized banks (which
according to the companies provide lower transaction rates) to get their inward
remittances in spite of ICICI being providing one of the most competitive rates. So the
bank can promote its EEFC account better and get the key to the door of huge potential
market.

69
4. Business advising for smaller Players: The analysis has also indicated that the concept
of business advising though very popular with the higher end players is virtually non
existent in the lower end of the market. ICICI should take this opportunity to provide
business advising to the smaller companies at competitive rates and try to take the first
mover advantage.

THREATS
1) Advent of MNC banks: Large numbers of MNC banks are mushrooming in the Indian
market due to the friendly policies adopted by the government. This can increase the
level of competition and prove a potential threat for the market share of ICICI bank.

2) Dissatisfied Customers: The analysis indicated that though most of the companies are
satisfied with the products offered by ICICI bank but the poor customer support/ service
is creating a lot of dissatisfaction among the customers, this can prove to be a serious
problem as far as the market reputation of the bank is concerned and cane be a major
threat in future business acquisition.

3) Ever improving nationalized banks: With PSU banks like SBI going all out to compete
with the private banks and government giving them a free hand to do so, it can prove to
be serious threat for banks like ICICI.

70
BIBLIOGRAPHY

WWW.GOOGLE.COM

WWW.ICICIBANK.COM

WWW.WIKIPEDIA.COM

71