Trade Finance

INDIRA SCHOOL OF CAREER STUDIES
Project Report
On
TRADE FINANCE
Submitted by
MANISH SEWAG
TRADE FINANCE
2
TABLE OF CONTENTS
1. ACKNOWLEDGMENT 4
TRADE FINANCE 5
GLOBAL ECONOMY 5
INDIAN ECONOMY 8
ICICI BANK OVERVIEW 11
OPERATIONAL PROCEDURE AT ICICI BANK 19
CASE STUDY. 61
ANNEXURES 62
INDIA’S MACROECONOMY INDICATORS. 63
SCHEMES 64
RESEARCH METHODOLOGY 71
QUESTIONNAIRE 72
ANNALYSIS/FINDING 78
LIMITATION 78
RECOMMENDATION 79
CONCLUSION 80
BIBLIOGRAPHY 81
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ACKNOWLEDGEMENT
As we present our report on the TRADE FINANCE at ICICI BANK., we take this
opportunity to express our heartfelt gratitude to certain individuals without whom
progress would have been impossible.
Foremost, we would like to thank Prof. Rajiv Taneja for giving us the opportunity
to apply our learning for studying the Trade Finance activities of the company. We
would also like to thank Mr. Mahesh Sharma Sales Manager at ICICI Bank, for
his valuable and periodic inputs.
Finally, our sincere thanks go to all our colleagues and friends whose names go
unmentioned. Their periodic inputs and informal discussions with us have enabled
us get a better perspective on our progress and methodology.
We hope all that we have learnt from our project will help us in our future growth
as well.
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EXECUTIVE SUMMARY
I got my project in the retail asset division of ICICI direct, Bikaner branch. The project
title was in depth of product, process & policies of ICICI direct. Business is on a decline
mode and with further money restrictive policies by RBI, much tougher times ahead. As
a slowdown is ahead, banks are doing intensive research to come out with such
strategies so that they could invest money in market.
To conduct a research on a ICICI product like DEMAT account, it was a necessity to

understand the process & policies of ICICI direct. I came to knew about various plans
for various customers. There was a separate polices, schemes for different- different
customers like , government officers, army officer, existing customers, telecom
employee etc.
We can conclude that bank staggering image , higher interest rates as compared to other
players.
Bank’s staggering image can be improved by recruiting a much moralistic sales force
and hard instructions by sales managers to provide true information to the prospects.
Customer acquisition based on fraudulent information should be totally stopped.
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CHAPTER-1
TRADE FINANCE-A CATALYST FOR INDIA’S INTERNATIONAL TRADE
 Active engagement in global trade has become one of the key factors in the
growth of firms and the prosperity of countries. This is true not only in the
case of major trading nations, but also, and perhaps even more so, with
respect to developing countries like India. Liberalization of the foreign trade
sector has been a cornerstone of the reforms of the Indian economy, with the
result that the country’s share in global trade has-been rising in recent
years, as also the contribution of the foreign trade sector to the overall
Indian economy.
 The share of India in global merchandise exports has risen from 0.4 percent
in 1980 to over 1.0 per cent in 2006, as per latest data from WTO, while the
merchandise foreign trade (exports plus imports) sector’s contribution to the
country’s GDP has risen from around 13.0 per cent to 33.8 per cent during
the same period.
 The buoyancy in India’s services sector, with the country ranking amongst
the top ten global exporters, would serve to further corroborate India’s
emerging place in the global comity of trading nations.
 India’s project exports, commencing with a modest beginning in the early
1980s, have evolved over the years to exhibit expertise in a wide range of
activities thereby reflecting technological maturity, industrial capabilities,
and growing sophistication of Indian exports
GLOBAL ECONOMY
 The global economy exhibited a strong performance in 2006, particularly

gaining from the economic dynamism in the first half of the year. Despite a
slowdown in the US economy later in the year, sustained economic activity in
the emerging markets and developing countries contributed to an improved
global GDP growth of 5.4 per cent in 2006, as compared to 4.9 per cent
during 2005, as per the IMF’s World Economic Outlook, April 2007.
 While real GDP growth in advanced economies touched 3.1 per cent in 2006
as against 2.5 per cent during 2005, the emerging markets and developing
countries registered a robust 9.6 per cent real GDP growth in 2006/07,
sustaining over 7 per cent growth for the third consecutive year. Global
inflation, which peaked to over 4 per cent during the first half of the year,
however eased thereafter, primarily on account of declining oil prices and
tightening of monetary polices across the globe.
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 Overall, the US economy registered an improved real GDP growth of 3.3 per
cent in 2006, as against3.2 per cent in 2005The Euro area gained from
increasing business confidence and improving labour markets to register a
real GDP growth of 2.6 per cent in 2006, its best performance since 2000 and
almost double of1.4 per cent recorded in the previous year. The resurgence
in economic growth in the Euro area could be sustained with increased
reforms directed towards enhancing labour utilization.
 In 2006, Japan sustained the momentum of its economic expansion with
support from strong private investments and exports and resumption in
credit lending. Japan’s real GDP growth improved to 2.2 per cent in the year
as compared to 1.9 per cent in 2005. Particularly, robust growth in exports
and income from foreign assets resulted in a current account surplus close to
4 percent of GDP in 2006. Economic growth in developing Asia in 2006
continued to be led by China and India.
 This is evident as, while real GDP growth of developing Asia further
strengthened to 9.4 per cent in 2006, over and above the 9.2 per cent growth
in the previous year, the region’s economic growth excluding China and
India stood at 5.9 per cent in 2006, reflecting a marginal slowdown
compared to 6.2 per cent in 2005. However, real GDP growth was
particularly high in South Asia at 8.7 per cent in 2006 largely due to a robust
real GDP growth in India.
 Growth in the Indian economy emerged on the strength of its domestic
demand, buoyant exports and high levels of investment, underlined by
significant performances by the manufacturing and services sectors. China
continued its strong economic performance in 2006 registering a 10.7 per
cent real GDP growth, as against 10.4 per cent recorded in 2005, and was
driven by robust increases in investments and exports.
 However, as credit off take continued to remain strong, signs of overheating

and inflationary pressures were distinct in both India and China, which were
addressed by increases in interest rates, reserve requirement ratios and
strengthening of liquidity management in both the economies.
 In emerging Europe, economic activity in 2006 was boosted by the economic
buoyancy in Western Europe coupled with dynamism in domestic demand,
driven by foreign investment and domestic consumption. As a result, real
GDP growth in emerging Europe improved to 6.0 per cent in 2006 as
compared to 5.5 per cent in the previous year. The sustained economic
health of the region could also be attributed to the gradual integration
process with the European Union, the latest being the accession of Bulgaria
and Romania in January 2007 However, current account deficit widened
further in emerging Europe while inflation growth was contained in most of
the countries.
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World Trade
 With an upward movement in global output and significant rise in world

trade prices of non-fuel primary commodities, global exports of goods went
up to US$ 11,920 billion.
 In 2006 implying a 16.0 per cent increase over previous year’s total of US$
10,275 billion, when it had grown by 14 per cent. Non-fuel primary
commodities registered a robust 28.4 per cent rise in US dollar terms in the
year, as against a 10.3 per cent rise in 2005. Oil prices, which eased since
August 2006, averaged 20.5 per cent growth, implying a dip from the
previous year when it had increased by 41.3 per cent.
 World trade price of manufactures, however, keeping the trend of the
previous two years, remained depressed with a modest 4.4 per cent growth in
2006. World exports of services amounted to US$ 2,797 billion in 2006,
implying an increase of 11.3 per cent over previous year’s total of US$ 2,512
billion. In terms of volume of trade, global Exports of goods and services
registered 9.2 per cent growth in 2006, improving over 7.4 per cent in the
previous year, however implying that world export growth in Recent years
have been primarily price driven.
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CHAPTER-2
INDIAN ECONOMY
Economic Overview
 India's economy is on the fulcrum of an ever increasing growth curve. With

positive indicators such as a stable 8-9 per cent annual growth, rising foreign
exchange reserves, a booming capital market and a rapidly expanding FDI
inflows, India has emerged as the second fastest growing major economy in
the world.
 The economy has been growing at an average growth rate of 8.8 per cent in
the last four fiscal years (2003-04 to 2006-07), with the 2006-07 growth rate
of 9.6 per cent being the highest in the last 18 years. Significantly, the
industrial and service sectors have been contributing a major part of this
growth, suggesting the structural transformation underway in the Indian
economy.
 For example, industrial and services sectors have logged in a 10.63 and 11.18
per cent growth rate in 2006-07 respectively, against 8.02 per and 11.01 cent
in 2005-06. Similarly, manufacturing grew by 8.98 per cent and 12 per cent
in 2005-06 and 2006-07 and transport, storage and communication recorded
a growth of 14.65 and per cent 16.64 per cent, respectively.
 Another significant feature of the growth process has been the consistently
increasing savings and investment rate. While the gross saving rate as a
proportion of GDP has increased from 23.5 per cent in 2001-02 to 34.8 per
cent in 2006-07, the investment rate-reflected as the gross capital formation
as a proportion of GDP-has increased from 22.8 per cent in 2001-02 to 35.9
per cent in 2006-07.
 During April-December 2007-08, gross fixed capital formation has
accelerated to 32.6 per cent of GDP, from 30.5 per cent of GDP in the
corresponding period in 2006-07
Industry
 India is fourteenth in the world in factory output. They together account for
27.6% of the GDP and employ 17% of the total workforce. However, about
one-third of the industrial labor force is engaged in simple household
manufacturing only.
 Economic reforms brought foreign competition, led to privatization of
certain public sector industries, opened up sectors hitherto reserved for the
public sector and led to an expansion in the production of fast-moving
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consumer goods.
 Post-liberalization, the Indian private sector, which was usually run by

oligopolies of old family firms and required political connections to prosper
was faced with foreign competition, including the threat of cheaper Chinese
imports. It has since handled the change by squeezing costs, revamping
management, focusing on designing new products and relying on low labor
costs and technology.
FINANCIAL SECTOR OVERVIEW
 The Indian money market is classified into: the organized sector (comprising
private, public and foreign owned commercial banks and cooperative banks,
together known as scheduled banks); and the unorganized sector (comprising
individual or family owned indigenous bankers or money lenders and non-
banking financial companies (NBFCs)). The unorganized sector and
microcredit are still preferred over traditional banks in rural and sub-urban
areas, especially for non-productive purposes, like ceremonies and short
duration loans.
 Prime Minister Indira Gandhi nationalized 14 banks in 1969, followed by six
others in 1980, and made it mandatory for banks to provide 40% of their net
credit to priority sectors like agriculture, small-scale industry, retail trade,
small businesses, etc. to ensure that the banks fulfill their social and
developmental goals. Since then, the number of bank branches has increased
from 10,120 in 1969 to 98,910 in 2003 and the population covered by a
branch decreased from 63,800 to 15,000 during the same period.
 The total deposits increased 32.6 times between 1971 to 1991 compared to 7
times between 1951 to 1971. Despite an increase of rural branches, from
1,860 or 22% of the total number of branches in 1969 to 32,270 or 48%, only
32,270 out of 5 lakh (500,000) villages are covered by a scheduled bank.
 Since liberalization, the government has approved significant banking
reforms. While some of these relate to nationalized banks (like encouraging
mergers, reducing government interference and increasing profitability and
competitiveness), other reforms have opened up the banking and insurance
sectors to private and foreign players.
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CHAPTER-3
ICICI BANK
OVERVIEW
 ICICI Bank (Industrial Credit and Investment Corporation of India) is

India's largest private sector bank in market capitalization and second
largest overall in terms of assets. ICICI Bank has total assets of about USD
100 Billion (end-Mar 2008), a network of over 1308 branches and offices,
about 3950 ATMs, and 24 million customers (as of end July 2007).
 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-life insurance, venture capital and asset management.
But these data are dynamic. ICICI Bank is also the largest issuer of credit
cards in India. [1]. ICICI Bank has listed its equity shares on stock exchanges
at Kolkata and Vadodara, Mumbai and the National Stock Exchange of
India Limited, and its ADRs on the New York Stock Exchange (NYSE).
 The Bank is expanding in overseas markets and has the largest international
balance sheet among Indian banks. The 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 the UK, Canada and Russia,
offshore banking units in Singapore and Bahrain, an advisory branch in
Dubai, branches in Sri Lanka, Hong Kong and Belgium, and rep offices in
the US, China, United Arab Emirates, Bangladesh, South Africa, Indonesia,
Thailand and Malaysia. In particular, the bank is targeting the NRI (Non
Resident Indian) population
 ICICI Bank reported marked-to-market loss of $264 million as of January
31, 2008 following the USA subprime mortgage crisis
BUSINESS REVIEW
 During fiscal 2007, the ICICI Bank continued to grow and diversify its asset
base and revenue streams by leveraging the growth platforms created over
the past few years. ICICI bank maintained leadership position in retail
credit, achieved robust growth in fee income from both corporate and retail
customers, grew deposit base and significantly scaled up international
operations and rural reach.
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1. Retail Banking
 While ICICI bank was among the first banks to identify the growth potential
of retail credit in India, over the last few years the banking system as a whole
has seen significant expansion of retail credit, with retail loans accounting
for a major part of overall systemic credit growth. Despite the increase in
interest rates during fiscal 2007, ICICI bank believe that the retail credit
continues to have robust long term growth potential, driven by sound
fundamentals, namely, rising income levels, favorable demographic profile
and wide availability of credit.
 At the same time, the retail credit business requires a high level of credit and
analytical skills and strong operations processes backed by technology.
ICICI bank retail strategy is centered on a wide distribution network,
leveraging its branches and offices, direct marketing agents and dealer and
real estate developer relationships; a comprehensive and competitive
product suite; technology-enabled back-office processes; and a robust credit
and analytical framework.
 ICICI bank is the largest provider of retail credit in India. Its total retail
disbursements in fiscal 2007 were approximately Rs. 777.00 billion,
compared to approximately Rs. 627.00 billion in fiscal 2006.
 Cross-selling new products and also the products of its life and general
insurance subsidiaries to existing customers is a key focus area for the Bank.
Cross-sell allows us to deepen its relationship with its existing customers and
helps us reduce origination costs as well as earn fee income. Its branches and
other online channels are increasingly becoming important points of sale for
its insurance subsidiaries.
 Customer service is a key focus area for the Bank and ICICI bank have
adopted a multi-pronged approach to continuously monitor and enhance
customer service levels. The Customer Service Council comprising whole
time directors and senior management meets regularly to review its
customer service initiatives.
 ICICI bank has implemented a structured customer feedback process where

feedback is received from customers through e-mail, mobile messaging and
telephone. ICICI bank conduct regular training programmes for employees
to improve customer handling and interaction and have incorporated
customer service metrics in performance evaluation. Its service quality team
is also responsible for tracking resolution and turn-around times for service
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requests, identifying root causes to be addressed through process
improvements, rewarding achievements in customer service and
institutionalizing learning’s from customer feedback.
2. Small and Medium Enterprises
 ICICI bank has focused on scaling up operations and expanding its franchise
in the small enterprises segment. In this segment its strategy has been
focused around customer convenience in transaction banking services, and
working capital loans to suppliers or dealers of large corporations and
clusters of small enterprises that have a homogeneous profile.
 During fiscal 2007, it’s customer base increased by more than 50% to over
900,000 transaction banking customers. These customers are serviced by
over 580 branches of the Bank, covering over 200 locations. During the year
ICICI bank also enhanced its value proposition to small enterprises through
product innovation and process efficiency covering various transaction
banking and assets products and non-branch banking channels.
 ICICI bank continued to strengthen it’s mindshare in the small and medium
enterprises sector through a weekly column ”SME Dialogue” in a leading
financial daily newspaper, and through a magazine “Emerging Enterprises”
for it’s SME clients jointly with another leading financial daily newspaper,
which feature relevant and contemporary issues relating to SMEs.
3. Corporate Banking
 Its corporate banking strategy is based on providing comprehensive and

customized financial solutions to its corporate customers. ICICI bank offer a
complete range of corporate banking products including rupee and foreign
currency debt, working capital credit, structured financing, syndication and
transaction banking products and services.
 Its corporate banking group has been re-organized into two groups, the
Global Clients Group, which is responsible for corporate clients having
significant international presence and/or international investment plans, and
the Major Clients Group, which is responsible for all other corporate clients.
ICICI bank have created an integrated Global Investment Banking Group,
that is responsible for working with the Global Clients Group and the Major
Clients Group and it’s international subsidiaries and branches, for
origination, structuring and execution of investment banking mandates on a
global basis.
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 ICICI bank is now a preferred partner for Indian companies for syndication
of external commercial borrowings and other fund raising in international
markets.
 ICICI bank has developed new relationships with medium-sized companies

who ICICI bank believes have the potential to become large corporations of
tomorrow. ICICI bank believe that medium-sized corporate will play an
important role in the economy and have created a dedicated group for
tapping opportunities with mid-cap companies.
 ICICI bank have also restructured it’s delivery team for transaction
banking products by creating dedicated sales teams for trade services and
transaction banking products.
 The resurgence of the Indian economy, the need for infrastructure

development and the international expansion of Indian companies all
provide exciting opportunities for its corporate banking business. ICICI
Bank believes that it is well-placed to capitalize on these opportunities by
combining its domestic and international balance sheets, and credit and
structured financing expertise.
4. Project Finance
 In order to sustain India’s growth momentum, infrastructure development is

a key requirement. The investment requirement in the infrastructure sector
is expected to increase significantly over the next five years. It’s project
finance proposition is based on it’s constant endeavor’s to contribute to the
project framework to enhance bankability of projects through it’s innovative
structuring skills, sectoral knowledge and robust due diligence techniques.
 In fiscal 2007, ICICI bank consolidated its lead arranger position across a
variety of project finance transactions in diverse sectors and has expanded
its reach to select international project finance transactions as well.
 There is tremendous potential in the infrastructure and manufacturing

sectors which is borne out by the large projects which are currently being
developed and implemented.
 The proposed modernization, up gradation and expansion of metro and non-

metro airports are expected to continue to provide significant business
opportunities in the future.
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 The telecom sector is expected to see continued growth given the relatively
low teledensity and consequently large investments in networks by telecom
service providers. The ultra mega power projects announced by the Central
Government, besides the increasing interest in hydroelectric generation
capacity and generation from other renewable sources in the private sector
are expected to continue providing attractive funding opportunities.
 The oil and gas sector is witnessing activity across the entire value chain,
from exploration and production through increased private sector
participation under the New Exploration Licensing Policy to setting up of
large-scale refineries by both public sector and private sector players. The
manufacturing sector is also seeing fresh capacity additions across sectors
such as steel, aluminum and cement.
5. Rural banking and agri-business
 The delivery of financial services in rural areas presents a set of unique

challenges. ICICI bank have formulated a comprehensive strategy for rural,
micro-banking and agri-business encompassing a range of products and
channels with the twin objectives of meeting the needs of the rural economy
while building a sustainable business model.
 Its rural strategy is based on enhancing value at every level of the supply
chain in all important farm and non-farm sectors. Towards this end, ICICI
bank offer a range of financial products and services that cater to the rural
masses in all the important sectors like infrastructure, horticulture, food
processing, dairy, poultry, seeds, fertilizer and agrochemical industries.
Customized financial solutions are offered to
individual Customers, agri small & medium enterprises, agri corporate and
members of their supply chains.
 On the rural retail side, the Bank offers crop loans, farm equipment
financing, commodity-based loans, and working capital loans for agri-
enterprises, microfinance loans, jewel loans as well as savings, investment
and insurance products.
 ICICI bank has developed a hybrid distribution channel strategy, a

combination of branch and non-branch channels (credit access points).
ICICI bank has embarked on a “no white spaces” strategy wherein ICICI
bank aims to setup an ICICI Bank touch point within 10 km of any
customer. The amalgamation of Sangli Bank would extend its outreach in
rural areas.
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6. International Banking
 In 2001, ICICI bank identified international banking as a key opportunity,

aiming to cater to the cross-border needs of clients and leveraging its
domestic banking strengths to offer products internationally. ICICI bank
have made significant progress in the international business since ICICI
bank set up it’s first overseas branch in Singapore in 2003.
 ICICI Bank currently has subsidiaries in the United Kingdom, Russia and
Canada, branches in Singapore, Bahrain, Hong Kong, Sri Lanka, Dubai
International Finance Centre and Qatar Financial Centre and representative
offices in the United States, United Arab Emirates, China, South Africa,
Bangladesh, Thailand, Malaysia and Indonesia.
 The Bank’s wholly owned subsidiary ICICI Bank UK plc has six branches in
London, Leicester, Manchester, South all, Wembley and Birmingham and
one branch in Belgium, ICICI Bank Canada has six branches in
Scarborough, Toronto Downtown, Toronto East, Brampton, Vancouver and
Surrey and ICICI Bank Eurasia LLC has two branches in Moscow and one
in Kaluga. ICICI Bank UK has received regulatory approvals for
establishing a branch in Frankfurt in Germany.
 ICICI Bank has established a strong franchise among non-resident Indians

(NRI). ICICI bank have established strong customer relationships by
offering a comprehensive product suite, technology-
enabled access for overseas customers, a wide distribution network in India
and alliances with local banks in various markets.
 Its market share in inward remittances into India has increased to over
25%. ICICI bank has consolidated its global remittance initiative, targeting
non-Indian communities, by leveraging its core capabilities of technology-
based service delivery.
ORGANISATIONAL STRUCTURE
 Its organization structure is designed to be flexible and customer-focused,

while seeking to ensure effective control and supervision and consistency in
standards across the organization and align all areas of operations to overall
organizational objectives. The organization structure is divided into six
principal groups-
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 Retail Banking
 Wholesale Banking
 International Banking
 Rural, Micro-Banking and Agri-Business
 Government Banking and
 Corporate Centre
 The Retail Banking Group is responsible for its products and services for
retail customers and small enterprises including various credit products,
liability products, distribution of third party investment and insurance
products and transaction banking services.
 The Wholesale Banking Group is responsible for its products and services
for large and medium-sized corporate clients, including credit and treasury
products, investment banking, project finance, structured finance and
transaction banking services.
 The Rural, Micro-Banking & Agri-Business Group is responsible for

envisioning and implementing it’s rural banking strategy, including
agricultural banking and micro-finance.
 The Government Banking Group is responsible for its government banking

initiatives.
 The International Banking Group is responsible for its international

operations, including its operations in various overseas markets as well
as its products and services for non-resident Indians and its international
trade finance and correspondent banking relationships.
 The Corporate Centre comprises the internal control environment functions

(including operations, risk management, compliance, audit and legal);
finance (including financial reporting, planning and strategy, asset liability
management, investor relations and corporate communications); human
resources management; and facilities management & administration.
 In addition to the above, the Global Principal Investments & Trading Group
is responsible for taking proprietary positions in the Indian and
international markets.
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PRODUCTS
ICICI product
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ICICI bank has provided many services to his customer, which can be classified into
two main categories which are as follows :-
Bonds
DEMAT
services
Retail financial
services Loans
Fix deposits
ICIC
I Life
insurance
Retail and
internet banking
Investment
banking
Corporate
Financial Project and
corporate finance
services
Equity research
and broking
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ICICI group
ICICI bank ICICI venture ICICI securities
Commercial Bank Venture capital Investment bank one
India’s First internet leading private equity of the key player in
bank 47% holding. investor in India with the Indian capital
(used on NYSE and focus on it and health market 100%
ISE) care 100% holding holding.
ICICI prudential ICICI LIMITED ICICI web trade
A 74%-26% joint (parent company) On-line brokerage
venture between Financial service (10% holding of
ICICI & prudential company listed on ICICI LTD.)
PVT. LTD. CO. of NYSE
UK
ICICI PFS ICICI capital ICICI infotech
Marketing and Distribution and Technology arms
distribution of retail services of retail transaction
assets products liabilities product processing software
(100% holding) (100% holding) development
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The PEST or PESTLE Analysis
 Originally designed as a business environmental scan, the PEST or PESTLE

analysis is an analysis of the external macro environment (big picture) in
which a business operates. These are often factors which are beyond the
control or influence of a business, however are important to be aware of
when doing product development, business or strategy planning.
 This page has been developed to help and support anyone with activities or
projects which require use of the PESTLE analysis tool to undertake an
environmental scan of an organizations operating environment.
Visit the article home page for all of our articles and content
• Jump straight to the FREE PESTLE Template (below)

• PESTLE Analysis on an HR department or other internal function
• Download PDF versions of these templates
• History of PEST (LE)
It is important to take into account PESTLE factors for the following main
reasons:
• Firstly, by making effective use of PESTLE analysis, you ensure that what
you are doing is aligned positively with the powerful forces of change that
are affecting our working environment. By taking advantage of change, you
are much more likely to be successful than if your activities oppose it
• Secondly, good use of PESTLE analysis helps you avoid taking action that is
likely to lead to failure for reasons beyond your control
• Thirdly, PESTLE is useful when you start a new product or service. Use of
PESTLE helps you break free of assumptions, and helps you quickly adapt
to the realities of the new environment.
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SWOT ANALYSIS
CORPORATE PLANNING
 As part of the development of strategies and plans to enable the organization

to objectives, then that organization will use a systematic? Rigorous process
known as CORPORATE PLANNING.
 Swot alongside PEST / PESTLE can be used as a basis for the analysis of
business and environmental factors.
 Set objectives:- defining what the organization is going to
do.
 Environment scanning:- Internal appraisals of the
organization’s SWOT, this needs to include an assessment of
the present situation as well as a portfolio of product / services
life cycle.
 Analysis of existing strategies : - This should determine
relevance from the results of an internal / external appraisal. This
may include gap analysis which will look at environment
factors.
 Strategic issues :- Key factors in the development of a
corporate plan which needs to be addressed by the
organization.
 Develop new / revised strategies: - Revised analysis of
strategic issues may mean the objectives need to change.
 Establish critical success factors : - The achievement of
objectives and strategy implementation.
 Preparation of operational, resources, projects plans for
strategy implementation.
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HUMAN resources
 A Swot carried out on a Human Resources department may look like this :
Human resources A
SWOT carried out
on a Human
Resource Weaknesses Opportunities Threats
Department may
look like
this:Strengths
Developed Reactive rather than New management HR contribution not

techniques for pro-active; needs to team, wanting to recognized by top
dealing with major be asked rather improve overall management who
areas of HR, job than developing organizational by-pass it by
evaluation, unsolicited ideas effectiveness employing external
psychometric through consultants
testing and basic organizational
training development and
cultural
management
programmes
PRODUCTS OFFERED UNDER TRADE FINANCING AT ICICI BANK
 LETTER OF CREDIT
 BANK GUARANTEE
 EXPORT BILL NEGOTIATION
 EXPORT FINANCE
 IMPORT FINANCE
 ESCROW ACCOUNT
23
CHAPTER-5
OPERATIONAL PROCEDURES AT ICICI BANK
BUYERS / SUPPLIERS CREDIT
 The credit extended for imports directly by overseas supplier, bank, &
financial institution for original maturity of less than 3 years is referred to
as ‘trade credit’ for imports. Depending on the source of finance, such trade
credit will include suppliers’ credit or buyers’ credit.
 Supplier’s Credit: Short term loans where the credit for imports into India is
extended by the overseas supplier.
 Buyer’s Credit: Short term loans for payment of imports into India is
arranged by the importer from a bank or financial institution outside India.
 Authorized Dealers may approve proposals received in Form ECB for short-
term credit for financing, by way of either Supplier’s Credit or Buyer’s
Credit, of import of goods into India, provided:
(a) The credit is being extended for a period of less than three years,
(b) The amount of credit does not exceed USD 20 million, per import
transaction
(c) The `all-in-cost' per annum, payable for the credit does not exceed
LIBOR +50 basis points for credit up to one year and
LIBOR + 125 basis points for credits for periods beyond one
year but less than three years, for the currency of credit.
(d) Credits up to USD 20 million per import transaction with maturity
period exceeding one year but less than three years would be
available only for import of capital goods. (As per RBI circular
RBI/2004/154 A.P. (DIR Series) Circular No. 87 dated April 17,
2004).
All applications, in form ECB, for availing of short-term credit for amount
exceeding USD 20 million for any import transaction may be submitted to
Bank for onward submission to RBI.
Process Flow:
 SM to coordinate with customer to submit all applications duly filled to

branch to be further sent to GTSU address marking the cover as “Request
for approval of Buyers credit / Suppliers credit."
24
1. Please note that the approval should be obtained before opening

of the Letter of Credit in case of supplier’s credit and well before
the due date in respect of Buyers credit.
2. Request for approval after the LC opening date for supplier’s
credit and after the due date for buyer’s credit will not be
entertained, since it violates FEMA guidelines.
3. Every request should contain the recommendations of the
Solution Manager or Branch Manager and a declaration to the
effect that the applicant is a customer of ICICI Bank.
4. For obtaining quotes for Buyers Credit & Suppliers credit, SMs /
Branches should contact IFIG RM’s under whose geography the
actual import is happening. Details of IFIG RMs presently
handling various geographies is listed below:
• Mr. V Gopikumar - All Gulf countries
• Mr. Devang Bhuta- Singapore
• Mr. Mukesh Kumar - US, Canada, Latin America, Australia
& New Zealand
• Mr. Aakash Desai- UK, Europe and Africa
• Mr. Rakshith Kundha- S.E. Asia & SAARC (excluding
Bangladesh)
• Mr. Manmeet Singh - China, Korea, Taiwan, Japan, Hong
Kong
 For getting the quote from IFIG, the concerned SEG SM should provide the
data to IFIG as per the requisite format available on intranet (Business
Groups>>IBG>>International Banking>>IFIG.)
 It is advisable that SMs are in constant touch with their clients regarding
requirements of buyer’s credit, as IFIG would also require some time for
providing the quotes.
5. If the correspondent bank requires a guarantee from its bank, then

issuance of guarantee by ICICI Bank on behalf of the applicant
favoring the overseas lender can be made only with RBI
approval. In such cases, a 100% cash margin (or under sanctioned
limit) would be required from the customer for issuance of such
guarantee.
6. After the sanction process is through & customer has accepted the
quotes, the correspondent bank (on receiving the LC and request
from GTSU for buyer’s credit), will credit the funds to ICICI
25
Bank’s NOSTRO account. Upon receipt of funds, ICICI Bank will
make payment to the beneficiary. On maturity date the
customer (importer) pays ICICI Bank (Principal + interest) and
the same is remitted to the correspondent bank from which
buyer’s credit was taken.
7. For each approval, presently a processing fee of Rs.1000/- per
application is being charged. The entry for the processing charges will
be passed by CTSU by debiting the applicant's account.
Documents Required:
1) ECB application form duly filled by the applicant.

2) Copy of Letter of Credit with subsequent amendments.
3) Offer letter from lender (if available)
4) Pro-forma Invoice/ Commercial Invoice
5) Bill of Lading
6) Bill of Entry
7) NNL declaration/ Import License (if required)
8) Any other document.
PS:
1) SM’s should refer to latest RBI circular on short- term credit as the
guidelines may change from time to time.
2) Correspondent banks typically like to advice, confirm, and negotiate the LC
if they are providing financing. The preference of correspondent banks to
provide BC is for 90/ 180 days tenor. On a case-to-case basis 360 days
or higher can also be arranged. Rates for Buyers Credit generally vary
depending on size of the transaction.
3) Buyers’ credit & Suppliers’ credit for three years and above come under the
category of External Commercial Borrowings (ECB), which are
governed by ECB guidelines.
4) Please refer to latest schedule of charges, as the charges for processing f ee
may be changed form time to time.
INTRA DAY LIMITS:
 Customers can make a request for Intra day limits if say their cheque(s)
have been lodged in clearing and the funds are expected to be credited by the
end of day.
26
Process Flow:
Step 1:
On receipt of request from the customer, the SM is required to send a proposal in

the format mentioned below to the RH,
1. Name of the Borrower:

2. Type of facility sought:
3. Details of the cheque lodged in clearing:
4. No of times Intraday/ TOD given in the current year
5. Introduction details of Borrower / security provider
6. Business of the Borrower
7. Purpose for which the intra day limit is sought
8. Existing Exposure to Company / Group
9. Amount of intraday limit
10.Fee to be charged (to be charged manually):
* The business group has the option to charge fee at its own discretion. SM’s to
inform branch specifying the fee to be charged (manually).
RH will in turn seek approval from the following delegates as mentioned below:
(for other groups where RH’s are not there, SM’s need to seek approval from the
following delegates)
Sanctioning Authority
(Rs in Million)
Designation Limit
Head of Business Group Full
Officials in the Business Group of the rank of-
DGM 10.00
AGM 5.00
CM-II 2.50
27
Step 2:
After obtaining the approval, SM to maintain - customer request letter, duly

signed by the authorized signatory of the company, sanctioned approval note/ mail
on record in a file.
SM should then inform Branch (giving all details as mentioned above) to set up the
intra day limits in the system and recover the charges manually for the same by
debiting the customer’s account.
Step 3:
SM to ensure the regularization of Intra day limit. In case of the account runs into
debit due to return of cheque(s) lodged in clearing, the same should be informed to
the sanctioning authority. SM needs to take a fresh approval from sanctioning
authority through RH. SM needs to take the following documents in such case:
1) Customer needs to gives a request letter for conversion of intra day

limit to inter day limit, specifying the time (days) in which the account
is expected to be regularized.
2) The SM along with monitoring team should continue to follow up for
regularization of account. In case of current accounts, an interest rate
of CLOD rate will continue to be charged for the period the account
remains irregular. However, in case of cash credit account, an interest
rate of cc rate + 2% will continue to be charged for the period the
account remains irregular.
28
SECURED ADVANCES: LOAN/OVERDRAFT AGAINST TERM DEPOSITS)
No Type ofParticulars of documents Doc. No.

Borrower
1. Individual 1. Demand Promissory Note @ Demand Promissory
2. Letter depositing term deposit –Note- 1
unstamped LD LABOD 1
3. Duly discharged term deposit receipt/pass
book of the recurring deposit LD GEN 1
4. Unstamped letter for execution of security
2. Joint 1. Demand Promissory Note @ Joint Borrowers
Borrowers 2. Letter depositing term deposit –DPN
unstamped LD LABOD 1
3. Duly discharged term deposit receipt/passLD GEN 1
book of the recurring deposit
3. Sole 1. Demand Promissory Note @ Sole-Proprietorship
Proprietary 2. Letter depositing term deposit -firm DPN
firm unstamped
3. Duly discharged term deposit receipt/passLD LABOD 1
4. Partnership 1. OD facility letter (Request Letter) SignedPartnership DPN
firm by all the partners LD LABOD 1
2. Demand Promissory Note @ LD GEN 1
3. Letter depositing term deposit -
unstamped
book of the recurring deposit
5. Limited 1. Board Resolution DPN for Public/ Pvt.
Company 2. Demand Promissory Note @ Ltd. Co. (S.No.8)
3. Letter depositing term deposit -LD LABOD 1
unstamped LD GEN 1
6. Unstamped declaration as per the
Companies Act, 1956
OVERDRAFT AGAINST GUARANTEES/ SBL/C

No Type ofParticulars of documents Doc. No.
Borrower
29
1. Individual 1. Demand Promissory Note Demand Promissory
2. General Conditions - GC I (forNote 1
working capital limits) LD WC 1
3. Credit Facility Agreement forLD WC 2
working capital limits LD PL 6
4. Personal guarantee, if any LD GEN 1
5. Unstamped letter for execution of
security
2. Joint Application signed by all jointJoint Borrowers DPN
Borrowers borrowers for credit facility. LD1 (A)
1. Demand Promissory Note LD WC 1
2. General Conditions - GC I (forLD WC 2
working capital limits) LD PL 6
3. Credit Facility Agreement for
working capital limits LD GEN 1
4. Personal guarantee, if any
security
3. Sole OD facility letter (Request Letter) Sole-Proprietorship
Proprietary Signed by all the partners firm DPN
Firm 1. Demand Promissory Note
2. General Conditions - GC I (forLD WC 1
working capital limits)
5. Unstamped letter for execution ofLD GEN 1
security
4. Partnership OD facility letter (Request Letter)Partnership DPN
firm Signed by all the partners
1. Demand Promissory Note LD WC 1
2. General Conditions - GC I (for
working capital limits) LD WC 2
3. Credit Facility Agreement for
5. Unstamped letter for execution ofLD GEN 1
security
5. Limited Board Resolution DPN for Public/ Pvt.
Company 1. Demand Promissory Note Ltd. Co. (S.No.8)
2. General Conditions - GC I (for
working capital limits) LD WC 1\
30
4. Personal guarantee, if any LD GEN 1
security
The tariff for issuing solvency certificates is given below:
FORMAT
(On Bank’s letterhead)
STRICTLY PRIVATE & CONFIDENTIAL
SOLVENCY CERTIFICATE
To whomsoever it may concern
This is to certify that to the best of our knowledge and information

______________________________________________________________________
__
(Write the name of the customer)
A customer of our Bank is respectable and can be treated as good up to a sum of
Rupees ______________________________________________________.
It is clarified that this information is furnished in strict confidence and without

any risk and responsibility on our part or on the part of any of the Bank’s officials
in any respect whatsoever more particularly either as guarantor or otherwise.
This certificate is issued at the specific request of the said customer.
Authorized Signatory
Date:
Place:
L/C AMENDMENT
31
 During the course of business, buyer and seller may agree to change terms
and conditions of contract. If these changes are related to LC
already opened, then changes need to be made to LC. This process is called
Amendment under LC. The process is similar to LC Issue. However,
amendment has to be linked to original LC. In the case of Irrevocable
Credits, any amendment to LC requires concurrence of the Beneficiary
(Seller) also.
Process Flow:
1) The customer submits a request letter amendment of LC to SM/CSM. The
letter to be duly signed by the authorized signatory of the company.
2) CSM to scan the letter to GTSU.
3) GTSU to scrutinize the same and inform SM/CSM in case of any
discrepancy. GTSU will also inform SM/CSM about discrepancy (if
any).
4) SM/ CSM to inform the customer about the discrepancy and need to
resolve the discrepancy and inform GTSU. CSM to scan any other
required document to GTSU, (if any).
5) GTSU to do data entry, verification into Finacle and to send SWIFT
message upon resolution of all discrepancies. GTSU to also e-mail a
copy of SWIFT message to Branch & the customer (on the availability of e-
mail).
6) Branch to print debit advice, LC amendment copy and handover the
same to the customer.
Tariff: Presently we are charging Rs 1000/- per L/C amendment. However, if the
extended date falls beyond the period for which commitment charge has been duly
collected and the cases where amendment is for the enhancement of value or for
revival of expired LC’s, please refer to clause 3.4 of the latest Schedule of Charges
(dated 19th of July, 2003).
Documents Required
S. Documents to be submitted Nature (M/I) To be
No M-Mandatory /scanned
I- If applicable Y--Yes / N
—No
1 Customer Request Letter M Y
2 Performa invoice by beneficiary orI Y
contract copy
3 Purchase Order by Opener I Y
4 NNL Declaration with H.S.Code I Y
5 Import License I Y
6 Any other document submitted by client I Y
OUTWARD REMITTANCES & ADVANCE IMPORT REMITTANCES
32
Bank can pay money abroad on a customer’s behalf provided it is allowed to do so
under foreign exchange regulations. This payment is known as remittance. A
remittance is transferred from the buyer to the seller. So if the buyer gives
funds to its bank, it’s called an outward remittance and if the seller’s bank
receives funds to be given to the seller, it’s called inward remittance.
• Bank collects the money from buyer
• Buyer’s bank gives the money to Seller’s bank
• Seller’s bank gives the money to seller
Advance Import Remittances

• Money flows first and goods are shipped later.
• Buyer asks his bank to make payment to seller as advance
Advantages for Seller:

• Gets payment in advance
• Lower cost as compared to red clause LC
Risks Involved:
• Buyer runs the risk of non-delivery of goods
• Bank has to follow up for bill of entry
Process Flow:
1) Customer to submit a request letter to SM, duly signed by the

authorized signatory of the company.
2) SM will ensure that the customer complies with all the KYC guidelines and
will coordinate with customer to submit all the relevant documents. SM
to send the entire set of documents (mentioned below) to CSM/ Branch.
3) CSM to verify the documents as per checklist available at branch. CSM to
further verify the signatures and scan the documents to GTSU with
information about forward contract to be used for payment (with DD No
if request is for DD).
4) GTSU to scrutinize the documents and to send the information about
discrepancies (if any) to SM/CSM.
5) SM/CSM to coordinate with customer for resolution for discrepancies.
6) If there is a forward contract, GTSU to take that rate or else GTSU to take
rate from FX Online. GTSU to do Entry and verification into Finacle
for debiting customer account and authorizing SWIFT message for
NOSTRO debit. In case of TT, GTSU to transmit SWIFT message (MT100)
with e-mail/fax to customer & branch. In case of DD, it will send SWIFT MT
110.
7) Branch will issue DD after account is debited or it blocks amount in the
account. Amount blocked in the account would be released after customer
33
account is debited. Branch to print debit advice, SWIFT message if any
and handover to the customer.
8) Foreign DD inventory would be kept in the joint custody at the Branch.
Documents Required:
Advance Import Remittance
S. No Documents to be submitted Nature (M/I) To be

M-Mandatory scanned
/ Y--Yes / N
I- If—No
applicable
2 Performa Invoice by beneficiary orM Y
Contract Copy
3 Purchase Order by Opener M Y
4 FEMA Declaration M N
5 NNL Declaration with H.S.Code M Y
6 A1 Form M N
7 Bank Guarantee I Y
8 Import License I Y
9 Any other document submitted byI Y
client
Outward Remittance
S. No Documents to be submitted Nature (M/I) To be

M- scanned
Mandatory / Y--Yes / N
I- If applicable —No
2 Performa Invoice or Copy of Invoice M Y
3 A2 Form M N
4 FEMA Declaration M N
5 Copy of each other document M Y
DEMAT ACCOUNT: -
 Demat refers to a dematerialized account. Just as you have to open an

account with a bank if you want to save your money, make cheque
payments etc, you need to open a Demat account if you want to buy or
34
sell stocks. So it is just like a bank account where actual money is
replaced by shares.
Requirement for Demat account opening :-

• PAN card ( mandatory)
• Voter's ID
• Passport
• Ration card
• Driver's license
• Photo credit card
• Employee ID card
• Bank attestation
• IT returns
• Electricity/ Landline phone bill
• Passport size photo.
These formalities fulfill from customer side & Xerox of the required formalities
should be attested by the customer & verify by the office.
From official use required different schemes like, S13, S1, S17 etc, KYC form,
letter from existing bank, Annexure.
TREDING ACCOUNT :-
• An account similar to a traditional bank account, holding cash and

securities, and is administered by an investment dealer.
• An account held at a financial institution and administered by an investment
dealer that the account holder uses to employ a trading strategy rather than a
buy-and-hold investment strategy.
• Though trading accounts are traditionally thought to hold only stocks, a trading
account can hold cash, foreign cash, securities and a number of other types of
investments.
• Investors who use a number of trading strategies or have a number of
brokerage accounts may separate their accounts in order to avoid confusion.
One account may be a registered account for their retirement savings; another
account may be a buy-and-hold account for their long-term stocks; another
may be a margin account; and another may be a trading account used
for conducting day-trading activities.
ANNEXURES
35
36
INDIA'S MACROECONOMIC INDICATORS

INDICATORS 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09
GDP (at current prices, 1,301.2f

507.1 599.4 700.9 808.7 916.4 1170.5e
US$ bn)
GDP Growth (at
3.8 8.5 7.5 9.4 9.6 9.0* 8.0 #
constant prices, %)
Agriculture & allied -7.2 10.0 0.0 6.0 3.8 4.5* -
Industry 6.8 6.0 8.4 8.0 11.0 8.5* -
Services 7.4 8.9 10.0 10.3 11.1 10.8* -
Sectoral Share in GDP (%)

Agriculture & allied 20.8 21.0 18.8 19.6 18.5 17.8* -
Industry 26.7 26.4 27.5 26.4 26.8 26.6* -
Services 52.6 52.5 53.7 54.0 54.7 55.6* -
Inflation rate (WPI, avg.

3.4 5.5 6.5 4.4 5.4 4.7 11.98 (July 19)
%)
Gross Fiscal Deficit (%

5.9 4.5 4.0 4.1 3.5 3.1e 2.5e
of GDP)
Exchange Rate (Rs/US$, 48.4 46.0 44.9 44.3 45.3 40.3 42.40 (August
avg.) 4)
Exchange Rate (Rs/Euro, 66.02 (August
48.1 54.0 56.5 53.9 58.1 57.1
avg.) 4)
42.8 (April-
Exports (US$ bn) 52.7 63.8 83.5 103.1 126.4 155.5
June)
% change 20.3 21.1 30.9 23.4 22.6 23.0 22.3^
73.3 (April-
Imports (US$ bn) 61.4 78.1 111.5 149.2 185.7 235.9
June)
% change 19.5 27.3 42.7 33.8 24.5 27.0 29.7^
-30.4 (April-
Trade Balance (US $ bn) -8.7 -14.3 -28.0 -46.1 -59.3 -80.4
June)
Services Exports (US$

20.8 26.9 43.2 57.7 76.2 87.7 -
bn)
Software Exports (US$
9.9 13.3 17.7 23.6 31.3 40.3 -
bn)
Services Imports (US$
17.1 16.7 27.8 34.5 44.4 50.1 -
bn)
Services Balance (US$
3.7 10.1 15.4 23.2 31.8 37.6 -
bn)
Forex Reserves (US$ bn) 76.1 113.0 141.5 151.6 199.2 309.7 306.6 (July 25)
External Debt (US $ bn) 104.9 111.6 133.0 138.1 169.7 221.2 -
External Debt to GDP
20.3 17.8 18.6 17.2 17.8 18.8 -
Ratio (%)
Short Term Debt / Total
4.5 4.0 13.3 14.1 15.5 20.0 -
Debt (%)
Foreign Investment
6.0 15.7 15.4 21.5 29.1 61.8 6.5 (April-May)
Inflows (US$ bn)
FDI (US$ bn) 5.0 4.3 6.1 9.0 22.1 32.4 7.7 (April-May)
GDRs/ADRs (US$ bn) 0.6 0.5 0.6 2.6 3.8 8.8 1.0 (April-May)
- 2.2 (April-
FIIs (net) (US$ bn) 0.4 10.9 8.7 9.9 3.2 20.3
May)
FDI Outflows (US$ bn) 1.9 2.1 2.3 6.1 14.4 19.3 -
37
SCHEMES USED FOR DEMAT OPENNING
38
Form S1
SCHEDULE OF CHARGES (FOR RESIDENT NON-CORPORATES)
Form No. :
New brokerage structure (limited period offer)

Product New Brokerage Old Brokerage
*
Mergin/Mergin+ 0.01% 0.05%
Futures 0.01% 0.05%
Option 25/- Per Contract 95/- Per Contract
*Subject to a minimum of Rs.15/-
Note- ST & STT extra.
-Schemes available for all customer w.e.f 1st Aug,07 & reduced brokerage as above applicable
till T+1 month. Normal charges to be charged thereafter.
E.g. :- If the account is opened on 1st Aug, 07 then the reduced brokerage will be applicable
till 30 Sep,07.
th
Turn over (Value of Brokerage (% age of Brokerage (% age for Effective Brokerage per
Transaction) slabs transaction value) first leg squared off orders) leg for squared off order.
Second leg*
<Rs.10 lacs per quarter 0.75% Nill 0.375%
Rs.10 lacs<25 lacs per 0.70% Nill 0.350%
quarter
Rs.25lacs<50 lacs per 0.55% Nill 0.275%
quarter
Rs50 lacs<1 cr per 0.45% Nill 0.225%
quarter
Rs.1cr<2crs per quarter 0.35% Nill 0.175%
Rs.2crs<5 crs 0.30% Nill 0.15%
Above Rs. 5crs 0.25% Nill 0.125%
*Within the same settlement
Computation of brokerage : In the first leg of transaction, Brokerage @0.75% (subject to the minimum
of Rs. 25/- per trade) will be charged. An appropriate rebate will be calculated at the end of each quarter
based on the total transactions, and will be credited to the customer’s account.
2.Margin/Margin + & derivatives Brokerage schedule :

Total Turnover(value of Brokerage Effective Brokerage of Intra
Transaction)per month day square off trades
More than Rs.20 crs 0.030% 0.0150%
More than Rs. 10 crs<20crs 0.035% 0.0175%
More than Rs.5 crs< 10crs 0.040% 0.0200%
Less than Rs.5crs 0.050% 0.0250%
3.Spot Brokerage schedule :

Brokerage Details Brokerage Structure
Brokerage % 1.00%
Applicable Service Tax will be charged in addition.
Securities Transaction Tax (STT)
• STT at the rate of 0.125% of turnover will be charged in addition to the Brokerage on all Delivery
Trades.
• STT at the rate of 0.025% of turnover will be charged in addition to the Brokerage on sell leg of all
non-Delivery Trades.
• Securities Transaction Tax (STT) of 0.017% on turnover will be charged in addition to the Brokerage
in case of Sell Trades. Buy Tradesin Derivatives segment will not attract Securities Transaction Tax
(STT).
39
Balance Transfer Scheme - Transfer your holdings from your old DP to ICICI Bank Demat Free of Cost
and enjoy trading with convenience at SPECIAL REDUCED BROKERAGE rates. No incoming transfer
charges will be levied on off market incoming transfer to your ICICI direct linked demat account at any
time.
Balance Transfer Scheme :
In addition to point 3 you will be eligible for brokerage @ 0.05% in equity and @ 0.03% in Derivatives
on the following conditions.
a) Incoming transfer into ICICI direct link demat account have to be done within end of the next
calender month from date of account opening. This period is called the “Eligibility Period”.
b) 10% of the above turn over will be eligible for 0.05% brokerge in the Cash and the BTST
segments.
c) 100% of the above turnover (in point a) will be eligible for 0.03% brokerage in the derivatives
(Futures and Options) segment.
d) This special brokerage will be applicable for turnover done in the month after your Eligibility
Period.
Notes:
• Normal Brokerage will be charged initially. Difference between actual brokerage charged
and 0.05% will be refunded.
• This refund will be done over and above any other scheme you may be eligible for.
Example:
In case you open your ICICIdirect account on 11th July 2005.
• You will not be charged for any incoming demat transfers into your ICICIdirect demat
account.
• Suppose you transfer Rs. 5,00,000 worth of shares into your ICICIdirect linked demat
account within 31st August, 2005 (end of the next calender month of account opening).
CASH and BTST:

• 10% * Rs.5,00,000 = Rs. 50,000 is eligible for brokerage @0.05%. Brokerage @0.05%
will be applicable for the trades in the month of September 2005 with a maximum
turnover of Rs.50,000.
DERIVATIVES:
• 100% * Rs.5,00,000 = Rs.5,00,000 is eligible for brokerage @0.03%. Brokerage @0.03%
will be applicable for the trades in the month of September 2005 with a maximum
turnover of Rs.5,00,000.
Other Scheme Details For Balance Transfer Scheme:

• Holdings need to be transferred within the next CALENDER MONTH of
ICICIdirect.com account opening.
• An E-mail will be sent to you informing you the details of your eligibility. Other scheme
details will also be put up in the MY MESSAGE section on the trading page of
ICICIdirect.com.
• Refund, if any, will be made to your ICICI bank account after the Scheme period.
• Securities Transaction Tax(STT) and Service Tax will be charged extra as per applicable
rates.
____________________ __________________
Signature of customer Signatureof Representative
Form S17
SCHEMES DETAILS
40
Form No. :
Employee No.

Mergin/Mergin+* 0.01% 0.05%
Futures 0.01% 0.05%
* Subject to a minimum of Rs. 15/-
Note – ST & STT extra.
- Scheme available for all customers w.e.f. 1st Aug,07 & reduced brokerage as above applicable till T+1
month. Normal charges to be
charged thereafter.
E.g. :- If the account is opened on 1st Aug,07 then the reduced brokerage will be applicable till 30th
Sep,07.
You are eligible for the following benefits:
1. Account Opening Charges Zero. (Rs. 750/- for Regular Customers)
2. A waiver on the annual maintenance charges on ICICI Bank Demat for the first year.
(Rs.500/-subsequently)
3. Waiver on incoming demat transfer charges done at any time.
4. Balance Transfer Scheme:
In addition to point 3 you will be eligible for brokerage @ 0.05% in equity and @
0.03% in derivatives on the following condition.
a) Incoming transfer into ICICI direct link demat account have to be done within end of the
next calendar month from date of account opening. This period is called the “Eligibility
Period”.
b) 10% of the above turn over will be eligible for 0.05% brokerage in the Cash and the
BTST segments.
c) 100% of the above turnover (in point a) will be eligible for 0.03% brokerage in the
derivatives (Futures and Options) segment.
d) This special brokerage will be applicable for turnover done in the month after your
Eligibility Period.
Notes:
a) Normal Brokerage will be charged initially. Difference between actual brokerage charged
and 0.05% will be refunded.
b) This refund will be done over and above any other scheme you may be eligible for.
Please check the email sent after account opening and “My Messages” for details.
Please note that submission of the proof of eligibility under the scheme i.e. proof of being an
employee of the company is mandatory.
I Card Letter From HR Visiting Card Salary Slip
*Note:This scheme is applicable for all employees of those companies which are there in S17
approved list & A/A+ Group companies as defined by ICICI Bank.
______________________ _________________________
Name of customer Name & Designation of I
Direct Representative
Form S13
41
SCHEMES DETAILS
Form No. :
Employee No.
Newbrokerage structure (limited period offer)

*
Futures 0.01% 0.05%
charged thereafter.
Sep,07.
For the following benefits:
Brokerage rate of 0.05% (as against 0.75% for regular customer) for all trades
done through ICICI direct.com till the end of calendar quarter from account
opening date. This shall be valid for trades up to a cumulative worth of Rs 1 lakh.
Normal will be charged initially. Service Tax Securities Transaction Tax (as
applicable)* will be charged in addition. After the period, excess brokerage
charged will be refunded.
On the annual maintenance charges on ICICI Bank Demat for he first year.
Brokerage will be charged initially. Difference between actual brokerage charged
and 0.05% will be refunded and will be done over and above any other scheme
you may be eligible for.
Email sent after accounting and “ My Messages” updated after transfer of shares
for the exact eligibility details.
That submission of approved proof of eligibility under the scheme is mandatory.
____________________ _____________________
Name of customer Name & designation of I
direct Representative
LETTER FROM EXISTING BANK

42
This is to verify that

Mr/Mrs/Miss_______________________________________________________
having a saving bank account with our Bank/Branch bearing number
_______________________________________ opened on
__________________________________________________.
As per our record his/her/their address is given below:
Address: _______________________________
_______________________________________
_______________________________________
________________________________________
______________________________________
______________________________________
_______________________________________
Sign:_______________________
Verified the above name, address & signature as per our record.
This is required for opening an account with ICICI direct.com

Employee code:-
Designation:-
Authorized Signatory with stamp:
Stamp and Address of Bank:
Form S25
43
SCHEMES DETAILS
Form No.
Employee No.

*
Futures 0.01% 0.05%
charged thereafter.
Sep,07.
You are eligible for the following benefits:

1. Since you are a LI, GI, LAP, CC, MF, PL, HL, Gold coin, Offline IPO customer –
Account opening charges will be Rs250/- (as against Rs.750 for regular customers)
2. A waiver on the annual maintenance charges on ICICI Bank Demat for the first year.
Please note that submission of the proof of eligibility under the scheme is mandatory.
( )Home loan - ( )Loan sanction letter or ( )EMI payment schedule on bank letterhead
( )Life Insurance -( )Premium receipt or ( ) policy paper mentioning premium mode/amount
( )General Insurance -( )Premium receipt
( )Personal Loan - ( )Sanction letter or ( )EMI payment schedule on bank letterhead
( )Loan Against property - ( )Sanction letter or ( )EMI payment schedule on bank letterhead
( )Mutual Funds investments inclusive of SIPs{systematic investment plans} - ( )Receipt or ( ) Statement
( )Credit Card- ( )Front side photocopy of the credit card certified by I-Sec employee
( )Gold coin- ( ) Photocopy of receipt
( )Offline IPO - ( )Photocopy of Acknowledgment Slip and the Ipo cheque.
( )Car Loan - ( )EMI payment schedule on bank letterhead or ( ) Loan sanction letter
*Note:-criterias HL(15 lac & above),LI(20,000 annualized premium),GI(20,000 annualized

premium),PL(1.5lac & above),LAP(7.5lac & above), Offline MF inclusive of SIPs (20,000 & above,
SIPs of 3000 p.m for minimum 6 months), Credit Card( Titanium,Platinum&Gold) card owners
only,Gold coin(5 gms and above),Offline IPO(Rs40000/- & above) & Car Loan(6 lakhs & above).
Details of Customer Details of I Direct Representative
_____________________ ___________________
Name of Customer Name & Designation of I Direct
Representative
44
ICICI BANK LIMITED
VERIFICATION SHEET FOR KNOW YOUR CUSTOMER
VERIFICATION
DATE :
FORM NUMBER :
CUSTOMER
NAME :
CUSTOMER ADDRESS:
LANDMARK OF
THE LOCATION:
PROOF VERIFIED :
CUSTOMER’S
SIGNATURE :
VERIFIED DONE
BY :
CAT CODE :
TL CODE :
SIGNATURE OF
THE CAT :
45
Research methodology
Achieving accuracy in any research requires in depth study regarding the subject.
The research methodology adopted was basically based on primary data via which
the most recent and accurate piece of first hand information that could be collected
from all possible sources. Secondary data was used to support primary data
wherever needed.
Primary data was collected using the following techniques:
 Direct interview method and

 Observation method.
The main tool used was the questionnaire method. Further direct interview
method, where a face to face formal interview will be taken. Lastly a observation
method was used continuously with the questionnaire method, as one continuously
observes the surrounding environment he works in.
Procedure of research methodology:

 To conduct this research the target population was the people having demat
account and invest money in the market.
 Target geographic area was Bikaner, Rajasthan. Sample size of 50 people
was taken.
 To these 50 people a questionnaire was given, the questionnaire was a
combination of both open ended and closed ended questions.
 Finally the collected data and information was analyzed and compiled to
arrive at the conclusion and recommendations given
Sources of secondary data
These sources were used to obtain information on, ICICI direct and players
history, current issues, policies, procedure etc, wherever required.
 Internet.
 Magazines.
 Journals.
 News paper.
46
Q1. Do you have Demat account?
Type Response
Yes 35
No 15
INTERPRETATION :
From the above pie chart we can interpret that most of the respondent interviewed
have already a demat account.
47
Q2. If yes, which company you have open demat account?
Company Name Response

ICICI bank 18
Reliance 22
Other 10
INTERPRETATION :
From the above pie chart we can interpret that most of the respondent use
Reliance demat service.
48
Q.3 What percentage of your income do you save or invest?
Type of income Response

<10% 20
10-20% 13
20-30% 9
>30% 8
INTERPRETATION :
From the above pie chart we can interpret that when we asked about the invest of
their income to the respondent 8 person are invest more than 30%, and 20 person
are invest less than 10%.
49
Q.4 Which term would you like to invest?
Type of Investment Response

Long term 25
Short Term 20
BTST 5
INTERPRETATION:
From the above pie chart we can interpret that when asked about the term of
investment to the respondent than 25 people invest for long term.
50
Q.5 Are you satisfy with company service?
Type Response
Yes 30
No 20
INTERPRETATION:
From the above pie chart we can interpret that 30 persons are satisfy with the
bank service.
51
Q.6 Could you say in which company you want to open your demat account?
Type of company Response

ICICI bank 15
Reliance 20
Religare 5
Sharekhan 10
INTERPRETATION :
From the above chart we can interpret that most of the people want to open demat
account from the Reliance and than ICICI bank.
52
ANALYSIS AND FINDING
 Investors are conservative in nature. They invest for long term investment.
 By referring question no.5 that 30 persons are satisfy with the bank service.
 By referring question no.6 that most of person want to open demat account
at reliance money, because reliance money have low brokerage/maintenance
charge in compare to other bank.
 Creating special agency force to concentrate more on cities and metros and
satellite offices in cities.
 ICICI bank has high brokerage/ maintenance charge in compare to other

banks/securities.
53
LIMITATIONS
 Most of people think that ICICI bank suck extra money in compare to the
other securities providers.
 People provide false data as they were scared about providing actual data.
 Getting appointment with the people was difficult as most of the people were
busy and it was difficult to contact them again and again.
 Study is based on the assumption that respondent were truthful in

contributing the data.
54
Recommendations
 The company should focus on proper selection, remuneration, training and

motivation of the advisors.
 Become more active in capturing a wider range of customer by using

multiple distribution channels.
 New product innovation, lower premium, better services is crucial for the
company to increase its market share.
 Quick response time for claim disinvestment.
 Efficient and efficiency complaint handling.
 Documentation should be made less complex and hassle free.
 Every fortnight meeting should be connived to within about the problem

recommend of advisors.
55
CONCLUSION
 Change is very important and one whose goes which the changing
environment always succeeds, that is what I have learnt from the study. The
competition has grown too much in the securities sector with the opening of
the sectors.
 On the base of the project I can conclude that the investment sectors is the
one of the oldest industries of India.
 Post-liberalization, the Indian private sector, which was usually run by

oligopolies of old family firms and required political connections to prosper
was faced with foreign competition, including the threat of cheaper Chinese
imports.
 Investing in national saving certificate and kissan vikas patra has never been
easier. Units would be credited to your demat a/c and maturity, money
would be credited to your bank a/c no need to submit any physical
certificate.
56
QUESTIONS ASKED BY ME
Q1. Do you have Demat account?
Q2. If yes, which company you have open demat account?
Q.3 What percentage of your income do you save or invest?
Q.4 Which term would you like to invest?
Q.5 Are you satisfy with company service?
Q.6 Could you say in which company you want to open your demat account?
57
BIBLIOGRAPHY
• www.icicibank.com
• www.globaleconomy.com
• www.useximbank.com
• www.indianeconomy.com
• www.wto.com
• www.google.com
 Indian financial sectors
 World trade organization.
 Icici Wikipedia.
 Traderji.com
• www.tradingpicks.com
• Outlook express.
• www.tradefinance.com.
• Research methodology.
58

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INDIRA SCHOOL OF CAREER STUDIES

To conduct a research on a ICICI product like DEMAT account, it was a necessity to

TRADE FINANCE-A CATALYST FOR INDIA’S INTERNATIONAL TRADE

 The global economy exhibited a strong performance in 2006, particularly

 However, as credit off take continued to remain strong, signs of overheating

 With an upward movement in global output and significant rise in world

 India's economy is on the fulcrum of an ever increasing growth curve. With

 Post-liberalization, the Indian private sector, which was usually run by

FINANCIAL SECTOR OVERVIEW

 ICICI Bank (Industrial Credit and Investment Corporation of India) is

 ICICI bank has implemented a structured customer feedback process where

2. Small and Medium Enterprises

 Its corporate banking strategy is based on providing comprehensive and

 ICICI bank has developed new relationships with medium-sized companies

 The resurgence of the Indian economy, the need for infrastructure

 In order to sustain India’s growth momentum, infrastructure development is

 There is tremendous potential in the infrastructure and manufacturing

 The proposed modernization, up gradation and expansion of metro and non-

5. Rural banking and agri-business

 The delivery of financial services in rural areas presents a set of unique

 ICICI bank has developed a hybrid distribution channel strategy, a

 In 2001, ICICI bank identified international banking as a key opportunity,

 ICICI Bank has established a strong franchise among non-resident Indians

 Its organization structure is designed to be flexible and customer-focused,

 The Rural, Micro-Banking & Agri-Business Group is responsible for

 The Government Banking Group is responsible for its government banking

 The International Banking Group is responsible for its international

 The Corporate Centre comprises the internal control environment functions

The PEST or PESTLE Analysis

 Originally designed as a business environmental scan, the PEST or PESTLE

• Jump straight to the FREE PESTLE Template (below)

 As part of the development of strategies and plans to enable the organization

Developed Reactive rather than New management HR contribution not

PRODUCTS OFFERED UNDER TRADE FINANCING AT ICICI BANK

 EXPORT BILL NEGOTIATION

OPERATIONAL PROCEDURES AT ICICI BANK

BUYERS / SUPPLIERS CREDIT

 SM to coordinate with customer to submit all applications duly filled to

1. Please note that the approval should be obtained before opening

5. If the correspondent bank requires a guarantee from its bank, then

1) ECB application form duly filled by the applicant.

INTRA DAY LIMITS:

On receipt of request from the customer, the SM is required to send a proposal in

1. Name of the Borrower:

After obtaining the approval, SM to maintain - customer request letter, duly

1) Customer needs to gives a request letter for conversion of intra day

No Type ofParticulars of documents Doc. No.

OVERDRAFT AGAINST GUARANTEES/ SBL/C

The tariff for issuing solvency certificates is given below:

STRICTLY PRIVATE & CONFIDENTIAL

To whomsoever it may concern

This is to certify that to the best of our knowledge and information

It is clarified that this information is furnished in strict confidence and without

OUTWARD REMITTANCES & ADVANCE IMPORT REMITTANCES

Advance Import Remittances

Advantages for Seller:

1) Customer to submit a request letter to SM, duly signed by the

Advance Import Remittance

S. No Documents to be submitted Nature (M/I) To be

S. No Documents to be submitted Nature (M/I) To be

 Demat refers to a dematerialized account. Just as you have to open an

Requirement for Demat account opening :-

• An account similar to a traditional bank account, holding cash and

INDIA'S MACROECONOMIC INDICATORS