Corporate Banking of Icici

Jaipuria Institute Of Management,Lucknow
TERM PAPER
ON
Corporate Banking
Of
ICICI
PGDM (2009-2011)
JAIPURIA INSTITUTE OF MANAGEMENT

LUCKNOW
Guided By Submitted By
Mr. VINAY MOHAMMED ARIF KHAN

09-081
Asst. Manager NAVNEET KUMAR SINGH
09-088
Corporate Banking Of ICICI

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ICICI ,Hazratganj MANOJ KUMAR MAURYA

09-076
Acknowledgement
It indeed gives me a great pleasure in acknowledging from the very core of my

heart, the efforts of all those who bestowed upon me their love, affection and good
wishes while undergoing in my term paper.
I owe my special gratitude to Mr. Vinay who gave me her precious time to me
and suggested me how to proceed in the project and who’s valuable guidance
and motivational task which electrifies me time to time completion of my term
paper.
I am indebted to my faculty Mrs. Reena Agarwal of my college Jaipuria Institute

of Management, Lucknow for their blessings, cooperation and encouragement. My
gratitude towards them is beyond accountabilities.
At last but not least, I feel indebted to our almighty God who blessed and enable
me to complete the work. I pray to him for greater success on my path.

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CARPORATE BANKING OF ICICI BANK
INTRODUCTION
ICICI Bank offers corporates a wide range of products and services, the
technologies to leverage them anytime, anywhere and the expertise to
customize them to client-specific requirements.
From cash management to corporate finance, from forex to acquisition

financing, it provides with end-to-end services for all banking needs. The
result is an overall financial solution for companies that helps one
accomplish ones objectives.
1.ICICI Bank can guide through the universe of strategic alternatives - from
identifying potential merger or acquisition targets to realigning business' capital
structure.
2.ICICI Bank has been the foremost arrangers of acquisition finance for cross
border transactions and is the preferred financer for acquisitions by Indian
companies in overseas markets.
3.The Bank has also developed Forex risk hedging products for clients after
comprehensive research of the risks a corporate body is exposed to, e.g., Interest
Rate, Forex, Commodity, Credit Risk, etc.
ICICI offers global services through its correspondent banking relationship with
950 foreign banks and maintain a NOSTRO account in 19 currencies to service
better and have strong ties with ones neighboring countries
4.ICICI Bank is the leading collecting bankers to Public & Private Placement/
Mutual Funds/ Capital Gains Bonds issues. Besides, it has products specially
designed for the financial intermediaries to meet their unique requirements.

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5.It support international business by meeting working capital requirements of

export and import financing. It also has a host of non-funded services for its
clients.
6.Whatever ones industry, size or financial requirements, ICICI Bank has the
expertise and the solutions to partner all the way.
Cash Management Services
ICICI Bank's Cash Management Services offer a full range of receivable

and payable services to meet ones complex cash management needs.
Payments received from dealers/ distributors and made to suppliers are
efficiently processed to optimise cash flow position and to ensure effective
management of the operations of ones business.
ICICI Bank provides a gamut of products and services, ensuring

that all the business requirements of the corporations are met under one
roof. Further, ICICI Bank constantly innovates and improves its product
offerings in order to improve client servicing.
Products and Services
Collection Solutions
ICICI Bank offers a wide range of collection products to meet the specific
requirements of the clients like local cheque collections, upcountry cheque
collections, cash collections and electronic collections. With a wide network,
customised MIS and multiple channels for delivery of MIS, ICICI Bank
renders quick and effective management of receivables.
Payments
The payment solutions offered by ICICI Bank include bulk disbursement
solutions for making payments to channel partners through multiple modes,
Payable at Par solutions for payment of dividend, interest or for redemption
and Internet-based cheque writing facility for printing of cheques at ones
own premises.

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Key features-
1. Widest network across India
2. Comprehensive range of CMS products
3. Strong logistics support
4.Advanced technology support and a highly competent team
5.Dedicated and trained Customer Care
6. Ensuring timely deposit of collections
7.Timely execution of disbursement request
Collections
ICICI Bank offers a wide range of collection products to meet the specific
requirements of the clients. The products offered are as follows:
1. Local cheque collection through ICICI Bank branches
a.Correspondent bank branches
2. Upcountry cheque collection through:
a. ICICI Bank branches

b. Correspondent bank branches
c. Other banks
3.RTGS integrated collections
4.Electronic collections (through auto-debit)
5.Cash collections through our Doorstep banking services

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Features
• Wide network coverage of over 670 own locations and over 4200
correspondent bank locations
• Capability to process cheques drawn at any location
• Assured payment on fixed day basis, irrespective of the fate of the
instrument sent in for clearing
• Instrument outstanding report and credits in the pipeline report
available to strengthen internal control
• Multiple channels available for receipt of data including e-mails,
faxes, courier and the Internet
• Prompt realisation of cheques through an extensive network,
supported by correspondent banking relationships
• Availability of information on the amounts deposited at multiple
locations with information available at the instrument level
• Provision of uploading the system generated deposit slip details, in a
single file
• Customised MIS and availability of scan images of instruments at
select locations
Payments
ICICI Bank offers payment solutions that cater to all the requirements of a
corporation. The payment product suite includes bulk disbursement solution
through Integrated Payment System, Internet-based cheque writing which
facilitates printing of instruments at your own office and Payable at Par
solution for payment of dividend, interest and for redemption.
Key Features
Payment solutions of ICICI Bank offered through Integrated Payment
System (IPS) not only offers multiple modes of payment but also facilitates
functional, operational and financial benefits like:
• Single file upload to effect multiple modes of payments
a. Physical modes include cheques, demand drafts

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b.Electronic modes include direct credit to ICICI Bank account holders, RTGS and
NEFT
• Web-based access for uploading and authorising printing requests

• ERP extractor for extracting data directly from the ERP system
• Host-To-Host connectivity for Straight Through Processing of
transactions
• Data encryption for enhanced security
• Partial batch authorisation and processing
• Dynamic signature printing
• Printing of instruments and direct dispatch to beneficiaries
• Tracking of dispatches
• Advices over e-mail to beneficiaries
• Customised annexure printing for cheques
• At par cheques payable at over 700 locations
• Customised MIS
Trade Services
ICICI Bank offers a wide range of trade services designed to meet a range
of short term to medium term trade financing requirements so that company
can seize new business opportunities whenever they arise. Customers can
benefit from our streamlined processes based on a sound technological
backbone that are designed to provide best in class service levels, and
reduce the hassles associated with trade transactions. Whether one is an
importer or exporter, correspondent network of over 900 foreign banks,
and foreign currency Nostro accounts in 21 currencies will ensure that it
meet all ones international / domestic trade requirements.
ICICI Bank customers experience fewer delays in receiving payment,

require less effort in locating collection information details, gain increased
control over foreign receivables and experience improved cash flows.
Online Trade MIS Services

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one can now access ones Trade related information on the web through
Trade MIS. Online Trade MIS Services gives the power to manage
business better by managing the key aspects of trade related banking and
MIS online.
Trade MIS is available in Corporate Internet account wherein information is

updated on a T+1 basis. Through Trade MIS one may access details of:
• Limits
• Letter of Credit
a. Import
b. Export
c. CInland
• Bills
a. Import Bills
b. Export Bills
c. Inward Bills
d. Outward Bills
• Bank Guarantees
• Forward Contracts
E-advice
E advices would help in providing faster information of your daily

transactions. E advices are sent out daily at the end of day, to trade
customers. Current account with ICICI Bank is a prerequisite for getting e
advices.
Trade Alerts

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Planning for payments and timely action are critical requirements in trade
transactions. To take care of these critical requirements one can take
advantage of the Trade Alerts, specifically designed to provide details of the
transaction falling due or the payments to be made. To ensure that these
alerts are not missed, these are sent through emails. Trade Alerts are sent
out weekly to the email Ids registered for the same. CIB corporate Id is a
prerequisite for getting weekly Trade Alerts.
Process of Registration
A Customer can register for Trade Alerts and E Advices through the
following three modes:
• Phone Banking
• Corporate Internet Banking
• Fill up the Registration form/Request Letter and submit at the branch
Structured Trade Finance
ICICI team of Trade Finance experts regularly interacts with customers and
in addition to informing them on the latest developments in Trade Finance,
structure trade finance deals specifically suited to the requirements of the
customers. Its structured trade suite includes prepayment/ pre-export
finance, back-to-back letters of credit, inventory financing, invoice financing,
facilities for intermediaries, structured transactional finance and Export
Credit Agency .
Current Account
The current account product provides a host of services like Anywhere

banking which enables the customer to operate from any branch, provides
for faster collection of upcountry cheques, Doorstep banking which provides
for delivery and pick-up of cash and documents, Internet banking which

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enables online tracking of the account, execution of transactions and so on.

Multiple variants of current accounts are offered by ICICI Bank to suit ones
specific requirements.
General features of Current Accounts include:
• Multi-location Funds transfer

• Anywhere deposit and withdrawal
• Mobile banking
• Electronic Funds Transfer
• Customer Care
Roaming Current Account

Roaming Current Account (RCA) offered by ICICI Bank travels the distance
with business and helps effect lucrative business relationships. RCA brings
with it the concept of 'Anytime Anywhere' banking, enabling one to operate
your RCA from any of branches in over 700 cities across India.
The following features are also available with all variants:
• Multi-city cheques/Local cheques

• Unlimited withdrawal and deposit
• Demand drafts and pay orders
• Funds transfer
• Doorstep banking
Benefits
• Choose an account type that suits your business from the available
variants
• Cheque issued from RCA may be encashed at any of the 700
centres across India

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• Allows your customer to deposit cheques into your account from any
ICICI Bank branch
• Speedy reflection of the deposited cheque in your account
Variants
one may choose from the available six variants of the Roaming Current
Account depending on your requirements:
Standard Classic Premium
Gold Gold Plus Platinum
Made2Order Current Account

ICICI Bank's Made2order Account (M2O) is an account which is tailor-made
keeping in mind transactions which are unique to one business. The M2O
account gives the flexibility to choose services relevant to specific
business needs.
Depending on the services required, you may either maintain the required
Monthly Average Balance (MAB) or pay fees as per the volume and the
services utilised.
Special features of the M2O Account include:
• Flexibility in deciding the MAB

• Flexibility in deciding the free higher limits in services which are
required frequently
• Customised DD/Pay Order limits
• Flexible cash deposit limits at both the base and the non-base
branches
• Customised charges and free limits for services which are required
frequently
• Flexibility in choosing free cheque leaves.
Escrow Account

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ICICI Bank, extend the trust one has in us by providing with escrow
services for safe custody of assets or for revenue streams. These services
are customised to meet ones needs. Some of the escrow services offered
are in relation to the following:
• Project financing
• Debt repayments
• Sale purchase transactions
• Mergers and acquisitions
Features
• Specialised and dedicated services

• Risk reduction in new relationships
• Security towards contingencies
• Mandatory in certain transactions
Benefits
• Simplified documentation
• Customised transaction structure
• Online tracking of your escrow account
Fixed Deposit
Corporates can invest their surplus funds in fixed deposits for a wide range
of tenures. The minimum deposit amount is Rs.10,000. Other features of
the account are:
• Funding through a debit to the operative account/cheque for clearing

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• While interest is compounded quarterly, payment of interest is

quarterly, monthly or on maturity
• Interest payouts can be through credit to your account or through
banker's cheque
Benefits
• Wide range of tenures

• Choice of investment plans
• Partial withdrawal permitted
• Availability of auto-renewal facility
Structured Products
ICICI Bank has been a pioneer among Indian banks in offering structured
products to corporates, institutions and private banking clients. Such
structured products may be customized to offer a tailor-made exposure to a
specific asset class, viz. interest rates, currency, equity, credit or a
combination of any of the above. These products are available at our IBG
Locations.
Structured Products for Corporates
Structured products are normally offered to corporate clients in the form of

swaps, where the clients can choose from an array of products to suit his
needs. The interest rate linked products fall into one of the two categories -
Asset side and Liability side. On the Asset side, the client has an asset that
produces regular interest payments (floating or fixed). On the Liability side
the client has a floating or fixed rate liability.
Broadly, there are various kinds of structured products that a client may do
based on his underlying requirements and views about the asset class:
1. Cost reduction products

2. Yield enhancement
3. Hedging products

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A structured product can also be offered as a combination of any of the
above categories
Corporate Internet Banking
ICICI Bank' Corporate Internet Banking (CIB) is a one stop shop for all
online banking needs. It gives the power to execute critical bank
transactions instantly from ones office locations with no time lags and
hence is an indispensable tool in today's 24 x 7 high-speed business world.
With CIB, one can dramatically cut paperwork and enjoy the triple benefits
of 'efficiency, ease of use and economy'.
Non-Transaction Services Transaction Services

Transfer funds within own ICICI account
Real Time Account Balance Information
(Self account transfer)
Download of Account Statements in six Transfer funds to channel partners ICICI
formats account (Own to External transfer.)
Subscription for Account Statements by Transfer funds from channel partners
Email ICICI account (External to Own)
Transfer funds to non-ICICI Bank
Request for Cheque Book, Stop
accounts using NEFT/RTGS. Click
Payment and FD Opening.
here for NEFT locations.
Trade MIS to view all your trade related Utility Bill Payments to more than 228

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banking information. billers across India List of billers

Online Tax payment facility.
e-payment gateways
MAAG
MAAG Provides end-to-end advisory services to the client in the mergers

and acquisitions involving target search, analysis of the target and potential
synergies for the client, value analysis, pricing strategy, review of the
transaction documents, negotiation support, documentation and closure of
the transaction.
ICICI Bank's Global Investment Group services you through the entire
length of your project. From advisory and strategising services to
successfully executing profitable deals to handling all the banking
requirements, ICICI Bank provides the support at all stages.
ICICI Bank Edge
• India's leading M&A house providing end-to-end solutions for

inorganic growth aspirations of clients - from target search to deal
closure
• Strong sourcing and execution capability has enabled ICICI Bank to
become one of the leading players in the arena of cross border
acquisition advisory
• Extensive experience of business due diligence across sectors,
developed through the core skills of credit assessment
• Strong relationships with boutique investment banks and private
equity funds across the world
• Dedicated advisory team based out of various offices in Mumbai,
London, Singapore, New York
• Led by professionals with prior experience in advisory/ corporate
finance
• Well qualified and committed team working at sourcing leads and
capable of executing tight deadlines
• Robust processes incorporating the industry's best practices

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International Syndication Group (ISG)

International Syndication Group (ISG) acts as arranger / underwriter for a
variety of loans across the risk spectrum. These include
• M & A financing - strategic & financial sponsor driven acquisitions;

• Asset backed financing - aircraft, oil rigs, shipping, offshore
support vessels;
• Project financing - airports, oil and gas, power, roads, ports,
telecom
• Structured finance - high yield mezzanine / equity Linked debt
• Corporate lending - External Commercial Borrowing for
refinancing / capital expenditure.
ISG is an active player for India linked loans in both the primary and
secondary loan distribution market.
Financial Institution
ICICI Bank services the financial sector for the entire set of banking
requirements and provides a complete range of solutions. The Financial
Institutions and Syndication Group (FISG) is responsible for ICICI Bank's
relationship with the financial sector.
Under this umbrella, the Bank caters exclusively to the needs of
• Domestic Financial Institutions

• Banks
• Mutual Funds
• Insurance Companies
• Fund Accounting
The FISG has built strong relationships through various interactive

measures, like seminars, training programs, sharing of market information

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and views with clients, organising the Bank CEOs' Forum, etc.
We provide the following services to our clients:
Transaction Banking
The Bank delivers world class banking services to financial sector clients.
ICICI current roaming accounts empower one with 'Anytime, Anywhere
Banking'. They are designed for convenience. . It provides correspondent
banking tie-ups with foreign banks to assist them in their India-related
businesses.
Loan Syndication
The FISG is responsible for syndication of loans to corporate clients. It

ensures the participation of bank and financial institution for the syndication
of loans. Some of the products syndicated are
• Project Finance
• Corporate Term Loans
• Working Capital Loans
• Acquisition Finance, etc
Sell Down
ICICI Bank is a leader in the securitisation and asset sell-down market.

From its portfolio, the FISG offers different products to its clients in this
segment. The products are:
• Asset-Backed Securities (ABS)

• Mortgage-Backed Securities (MBS)
• Corporate Loan Sell-down
• Direct Loan Assignment

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Buyouts
As a part of a risk-diversification and portfolio-churning strategy, ICICI Bank

offers buyouts of the assets of its financial sector clients.
Resources
The Bank also raises resources, from clients, for internal use by issuing a
gamut of products, which run from Certificates of Deposit (CDs) to Term
deposits to Term Loans.
Capital Markets
ICICI Bank is an active capital market intermediary. It is one of the

promoters of several leading institutions in the country including National
Stock Exchange Of India Limited (NSE), National Commodities &
Derivatives Exchange Limited (NCDEX), Central Depository Services
(India) Limited (CDSL). Since 2000, the Bank has also been one of the
clearing and settlement banks for NSE and Bombay Stock Exchange
Limited (BSE). The Bank also took up the clearing and settlement banking
status for NCDEX in FY 2004 and has recently got the clearing and
settlement banking status on the Multi Commodity Exchange of India
Limited (MCX) and Spot Exchanges.
Primary Markets
Collecting Bankers
We are the leading collecting bankers (market leader) to Public/ Rights/
Private Placement/ Mutual Funds/ Capital Gains Bonds issues. ICICI Bank
is the only Bank to cross Rs. 1 trillion Collection. We are the market leader
in IPO Collection with a 34% share and 65% market share in Retail and HNI
Segment.
Escrow and Paying Bankers We act as escrow and paying bankers
to Mergers and Acquisitions.
Secondary Markets
As mentioned above, ICICI Bank acts as a 'clearing and settlement' banker

for members of NSE, BSE, NCDEX, MCX and Spot Exchange. ICICI Bank
also offers following products/services:

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• Cash Management Services

• NRI accounts
• Payment gateway
• Portfolio management services accounts
• Supply Chain Management Account
Clearing and Settlement Bankers

The Bank is the leading Clearing and Settlement Bank for The National
Stock Exchange of India (NSE) and The Bombay Stock Exchange (BSE),
and offers a range of products and services in the capital markets. It is also
a Clearing and Settlement Bank for other Exchanges in India namely The
National Commodity and Derivatives Exchange (NCDEX), The Multi-
Commodity Exchange (MCX) and Spot Exchange of India.
Bank Guarantees
The Bank issues bank guarantees to brokers on both the Capital Market
and Commodity Market segment favoring the NSE/ BSE/ NCDEX/ MCX/
Spot Exchange to meet Security Deposit/ Base Capital and Margin
requirements of the exchanges and Professional Clearing for trading
members clearing their trades through them.
Secured Overdraft
To meet working capital requirements of the brokers on the Capital Market
segment, the Bank provides after thorough credit appraisal secured
overdraft in the form of overdraft against shares.
Intra-day Funding
Intra-day Funding at the Bank's discretion to meet Exchange obligations
(against cheques deposited in clearing or payouts to be received from the
other exchanges) and client.
Temporary Overdrafts (TOD)

The Bank at its discretion provides Temporary Overdrafts to meet exchange
obligations and for any temporary cash flow mismatch.
Equities and Fixed Income Instrument

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ICICI Bank offers a complete range of custodial services and ensures high
processing standards, which are ISO 9001:2000 certified.
Services offered are:
• Guidance and application for foreign investments with regulators

• Application for trading codes to stock exchanges
• Strong Straight Through Processing (STP) platform for trade
confirmation and settlements; receipt and delivery of securities in both physical
and dematerialised form
• Dividend and other corporate benefit tracking and collection
• Customised Information system
• Web enabled reporting system
• Computer controlled storage vaults and premises for safekeeping of
the securities
• Proxy and Nominee Services (where permitted)
The ICICI Bank Advantage
• Mature STP Platform: We offer a fully developed STP platform for

seamless exchange of trading information from customers and brokers. This
facilitates timely settlement of trades and enhances the efficiency of the
settlement process with minimal manual intervention.
• Fund settlement and transfer: Integrated fund transfer and settlement
system
• Online functionalities: Electronic banking and availability of portfolio
statements on web. Online uploading and downloading of reports.
• Corporate Benefit Entitlements: Online forthcoming corporate
benefits report, entitlement collection report and follow up for all outstanding
benefits.
• Forex Remittances: Speedy processing of inbound and outbound
remittances and competitive rate for forex conversion
• Customised Reporting - Apart from providing an extensive suite of
standard reports, systems are geared with customised reporting for meeting

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client requirements as well as equipped to talk to a variety of customer

systems
• Dedicated Client Relationship Personnel: Experienced Relationship
Managers available for extended hours
Reports (Web based Reporting)
• Holding Statement
• Asset Valuation
• Transaction Report
• Bank Statement
• Forthcoming Corporate Actions Report
Derivatives clearing
The ever-changing face of the stock market has made derivative

instruments an important component of all investment portfolios. India is
one of the few markets in the world simultaneously offering the stock
options and futures and Index Options and Futures. Currently, the average
daily traded volume in the derivative segment is four times the existing cash
market volume of NSE. ICICI Bank is a registered Professional Clearing
Member (PCM) for the Derivatives segment on both National Stock
Exchange (NSE) and Bombay Stock Exchange (BSE). ICICI Bank is a
pioneer and has set processing standards in derivatives clearing business.
• Application for trading codes to stock exchanges

• Calculation and monitoring of margins - Initial and Mark to Market
(MTM)
• Monitoring of applicable position limits
• Trade give up
• Settlement of trades
• Reporting of fund position for margin obligations
• Customised Information system

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• Web enabled reporting system
Core Strengths
• State-of-the-art Risk Management System: Fully integrated risk

management system ensuring quick and reliable monitoring of available and
required margin and position limits
• Structured Products: Structured products to meet the collateral
requirements as defined by the exchange
• Online monitoring tools for Mark To Market margin
• Banking arrangement with all the major custodian banks in
India: Instant exposure is provided to the client anytime during the trading
hours
• Customised Reporting: Customised reporting for meeting client
requirements
• Dedicated Client Relationship Personnel: Experienced
Relationship Managers available for extended hours
Daily Reports (Web based reporting)
• Position limit utilisation report

• Margin movement report
• Daily activity summary report (Scrip wise day's trade, open-close
position and MTM)
• Scrip wise margin rates report
Custodians for ADR/ GDR issues
ICICI Bank is a custodian to the largest number of ADR/ GDR issuance

from India. It actively involved in committee instituted by regulators for
policy formulation and operative guidelines on two-way fungibility.
Services offered:

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• Delivery and settlement of underlying shares upon cancellation of

ADR/ GDR
• Re-issuance of ADR/ GDR
• Reporting of corporate benefit entitlements in cash or kind
Our Core Strengths
• SWIFT based information exchange system

• Local custodians for majority of actively traded ADR/ GDR issues by
the Indian companies facilitating instant credit of underlying shares into
Custodial account in India
• Quick head room information
• Quick processing of cancellation and re-issuance requests through
fully integrated and automated systems

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Fund Accounting
ICICI Bank provides discretionary fund accounting services as a value

addition to our custody clients. Services offered are:
• Investment Accounting: For all purchases and sales along with the
profit and loss
• Valuation for all securities: Equity, debt, gilt, money mark
instruments, derivatives etc
• Unit Capital Accounting: For recording capital inflows and outflows
from the fund/portfolio
• Income and expense accounting: Daily accruals
• NAV Computation
• MIS and Regulatory Reporting
• Reconciliation: Reconciliation with third parties like registrar, bank or
custodian
• Regulatory reporting
• Insurance Regulatory and Development Authority (IRDA)
• Reserve Bank of India (RBI)
• Securities and Exchange Board of India (SEBI)
Constituent Subsidiary General Ledger (CSGL):
CSGL facilitates large banks and financial institutions to hold their

investments in Government securities and Treasury bills in the electronic
book-entry form. Such institutions can settle their trades for securities held
in SGL through a Delivery-Versus-Payments (DVP) mechanism, which
ensures movement of funds and securities simultaneously. ICICI Bank
offers opening of SGL accounts and facilitates investment in Government
Securities and T- Bills.

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• Trade Confirmation & Settlement

• Dematerialisation and Rematerialisation: Conversion of physical
certificates into the electronic book entry format and vice versa
• Corporate Action: Tracking and collection of corporate benefit
entitlements.
This also includes:
• Primary Market Auctions
• Open Market Operations/ Value Free Transfer
• Calculation of Interest and Redemption
Core Strengths
• Fully Integrated Fund and Settlement system eliminating settlement

risk
• Completely web based reporting
• Experienced Relationship Managers available for extended hours

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Structured finance for Corporate clients
The Structured Finance Group aims to enable its corporate clients access
funds through cost efficient structures. The group's strength lies in its
experience and expertise in providing tailor-made solutions after
understanding the client's requirements.
To deliver these customized structures, it leverages on ICICI Bank's global

presence, industry expertise, large underwriting capability and
comprehensive product suite. Strong capabilities in end-to-end solutions
and timely execution have enabled ICICI Bank to become one of the
leading arrangers and underwriters of structured finance transactions.
The Structured Finance Group provides an array of services to its clients

including:
• Acquisition finance
• Asset-backed finance
• Receivables purchase
• Subordinated debt
• Convertibles / Hybrid instruments
• Non-recourse structures
Securitization & structured finance advisory solutions
ICICI help structure selling or buying of asset portfolios (in whole or in

part) for clients through securitisation or otherwise, thereby effectively
limiting their exposures to future risks arising out of such asset pools. We
can even offer to buy such identified asset pools from clients if the
commercials suit the Bank's risk-return appetite..
Traditionally Corporate borrowing has been on the basis of strength or

weakness of balance sheet, with the credit quality of the borrower being the
single most important factor. But of late the borrowings are being closely
linked to the value of the asset or the revenue earning capability of the
asset. This could be achieved by means of appropriate structuring wherein
customized borrowing propositions could be evolved for different business.

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A few examples of such structured financing could entail evolving solutions

around dealer financing,vendor financing, transporter financing, brand
financing, Export & Packing Credit (EPC) contract financing, investment
monetisation, etc.
Leveraging on rich experience and wide reach in the Indian debt markets,
It can provide arranging services for clients interested in securitising their
assets.
Being a SEBI registered Category - I merchant banker, we can

provideunderwriting services for securitisation transactions originated by
clients.
It can also provide protection to the client from interest rate / currency
risks for their structured finance exposures through interest rate swaps,
currency swaps and associated derivatives.
ICICIcan also participate in market making or investing at specific points in

time through structuring of appropriate Put Options.
Securitisation
Definition and intent
securitisation is a process through which illiquid financial assets are pooled
and repackaged into marketable securities. Generally, the assets to be
securitised are transferred by the asset owner (the originator or transferor)
to a "bankruptcy remote" special purpose vehicle (SPV) as the asset
purchaser. The SPV issues securities to public or private investors, which
are backed (i.e. secured) by cash flows generated by the assets securitised
and sometimes even by the underlying assets themselves. The net
proceeds received from the issuance of the securities are used to pay the
transferor for the assets acquired by the SPV.
The intent of securitisation is to ensure that repayment of the securities
issued to investors is dependent upon the securitised assets and therefore
will not be affected by the insolvency of any other party including the entity
securitising the assets. Most securitisation issues are rated by one or more
accredited rating agencies. The rating applies to the securities that are
issued to investors.
securitisation involves isolation of specific risks, evaluation of the same,
allocating the risks to various participants in the transaction (based on who

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is best equipped to handle the respective risks), mitigating some of the risks
through appropriate credit protection mechanisms and pricing the residual
risk borne by the originator. It has emerged as an efficient and cost-
effective resource raising mechanism which integrates the apparently
illiquid underlying assets with the capital markets.
Benefits to the originator

From an originator's perspective, the main advantages of securitisation
include the ability to raise finance at a relatively low cost, partial or total
removal of assets from its balance sheet, diversification of funding sources,
access to the capital markets for unrated entities and access to liquidity.
Thus, it serves as an effective balance sheet management tool for
originators through which hidden values could be identified and unlocked,
asset-liability mismatch, currency, commodity, interest rate risks, etc. could
be hedged and an enhanced return on capital could be managed through
the continuous churning of portfolio. Additionally, banks that raise funds
through securitisation are able to rationalize their regulatory and sometimes
economic capital requirements.
Benefits to the investor

From an investor's perspective, securitisation offers an alternative
investment medium, which, for a given rating level, usually offers a safer
investment avenue and higher risk-adjusted returns compared to equivalent
rated bank or corporate debt.
Categories of securitisation
securitisation can be classified into two categories:
• Asset backed securitisation, and

• Future flow securitisation
Dealer financing

28
Dealers of large corporates can be provided finance which can be either

with a limited recourse (on a first loss basis) to the corporate or based on
the creditworthiness of the dealer and its relationship with the manufacturer.
Bill discounting / Web-based financing with/without recourse, Cash credit /
Demand loan facilities, Financing for auto dealers, could be some of the
examples in this space.
Vendor financing
Vendor financing can be structured as a direct line of credit to the vendors
specifically to be used for supplies to the company or as a revolving line for
discounting bills raised by the vendors on the company. The former can be
integrated into the Internet banking model of ICICI Bank and a web-based
vendor financing structure can be created. The web-based structure would
offer the company the convenience of operating the credit line of the
vendors for making payments through the net immediately after accepting
goods. Vendor financing programs can be set up for specific vendors
recommended by the company. Through the widespread branch network of
ICICI Bank, the program can include vendors at multiple locations.
Transporter financing
This is a product designed to finance the truck operators who are dedicated
transport service providers to a company. The truck operators are typically
small players and hence have limited sources for raising funds. It is likely
that the vehicles used by them have been financed at a high cost which
they would indirectly be passed on to the company in the form of increased
freight rates. A financing facility could be set up for the truck operators with
some support from the corporates they serve, which could be used for
refinancing their existing vehicles or could be used for expansion of their
fleet in line with the company's growth requirements.
Brand financing
Borrowings could be structured against security of specific brand(s) or a
sale and lease back of the brand(s). Borrowers could even be financed to
fund purchase of a brand. In the first option, the brand would be mortgaged
in the name of the lender and only in the event of default of the loan would
the brand be transferred to the lender. The lender could alternatively
purchase the brand from the borrowing company and lease / license it out

29
to the same entity. After expiry of the lease / license period the brand could
either revert to the company or be sold to someone else. In the second
option, the loan could be given to the company exclusively for purchasing
the brand/s which would then be mortgaged in the name of the lender.
Export & Packing Credit(EPC) Contract Financing
Corporates are provided assistance to finance the gap between the inflows
and outflows of the contract. Performance guarantees and advance
payment guarantees given on behalf of the client to the Contractor / Owner.
Investment monetisation
This is a product designed to cater to the requirement of the business
groups to streamline the cross-holdings within their own group companies.
A Trust could be set up to acquire the intra-group cross holdings from the
various companies in the group at current market prices. To fund this, the
Trust would issue Pass-through Certificates (PTCs) to the lender. The take-
out could be through a put option provided by the identified holding
company of the group wherein the lender could sell the PTCs to the put
option provider at a pre-determined price on a fixed date. The deal could be
secured through a pledge of shares.
Project Finance Group
ICICI Bank Project Finance Group (PFG) has developed comprehensive

domain expertise and knowledge in the infrastructure & manufacturing
sector, having ensured timely financial closure of several big ticket projects.
PFG has unmatched capabilities of discovering, creating and structuring
project finance transactions.
Group structure
PFG is the “One Stop Shop” fulfilling the funding requirements of greenfield
& brownfield projects in infrastructure & manufacturing sector. It comprises
of three sub-groups as follows:

30
• Infrastructure Finance Group (IFG): IFG caters to the funding

requirement in the infrastructure sector like Power, Telecom, Roads, Ports,
Airports, Railways and Urban infrastructure.
• Manufacturing Projects group (MPG): MPG caters to the funding
requirement in the manufacturing sector like Oil & Gas, Steel, Aluminium,
Cement, Auto, and Mining
• Infrastructure Equity Group (IEG): IEG is engaged in providing equity
support to projects in various established as well as upcoming sectors.
The project finance team of ICICI Bank has developed substantial insight in
the dynamics and trends in the infrastructure sector, having assisted the
Government of India in formulating policies relating to various segments of
the infrastructure sector. The unique insight and understanding thus derived
from the exercise has not only enabled ICICI Bank to provide optimum
solutions to its clients, but has also provided ICICI Bank with an appropriate
decision support for strategic measures, going forward.
Service offerings
PFG provide a wide range of services including the following:
• Rupee term loans

• Foreign currency term loans
• External Commercial Borrowings
• Subordinated debt and mezzanine financing
• Export Credit Agency backed funding
• Non fund based facilities like Letter of Credit, Bank Guarantee,
Supplier’s Credit, Buyer’s Credit etc.
• Equity funding

31
Project Finance Group
ICICI Bank Project Finance Group (PFG) has developed comprehensive

domain expertise and knowledge in the infrastructure & manufacturing
sector, having ensured timely financial closure of several big ticket projects.
PFG has unmatched capabilities of discovering, creating and structuring
project finance transactions.
Group structure
PFG is the “One Stop Shop” fulfilling the funding requirements of greenfield
& brownfield projects in infrastructure & manufacturing sector. It comprises
of three sub-groups as follows:
• Infrastructure Finance Group (IFG): IFG caters to the funding

requirement in the infrastructure sector like Power, Telecom, Roads, Ports,
Airports, Railways and Urban infrastructure.
• Manufacturing Projects group (MPG): MPG caters to the funding
requirement in the manufacturing sector like Oil & Gas, Steel, Aluminium,
Cement, Auto, and Mining
• Infrastructure Equity Group (IEG): IEG is engaged in providing equity
support to projects in various established as well as upcoming sectors.
The project finance team of ICICI Bank has developed substantial insight in
the dynamics and trends in the infrastructure sector, having assisted the
Government of India in formulating policies relating to various segments of
the infrastructure sector. The unique insight and understanding thus derived
from the exercise has not only enabled ICICI Bank to provide optimum
solutions to its clients, but has also provided ICICI Bank with an appropriate
decision support for strategic measures, going forward.
Service offerings

32
PFG provide a wide range of services including the following:
• Rupee term loans

• Foreign currency term loans
• External Commercial Borrowings
• Subordinated debt and mezzanine financing
• Export Credit Agency backed funding
• Non fund based facilities like Letter of Credit, Bank Guarantee,
Supplier’s Credit, Buyer’s Credit etc.
• Equity funding

33
International Banking
As an international organisation looking at trading in India, one needs to be

backed up by the best trade services. ICICI Bank's exceptional domestic
banking services place it in the ideal position to cater to ones requirements.
As the largest private bank and the second largest bank in the country, it
has the reach to access any location in India efficiently.
Automated INR Payment Services
ICICI Bank offers efficient receipt and distribution of inward remittances

from Exchange Houses and Banks abroad. Advantages of using INR
account for rupee remittances through ICICI Bank Ltd. include:
• Web/SWIFT messaging facility

• MT 950/940 facility
• On-line view access to INR account
• MICR encoded stationery on request for issuance of INR drafts
Cross Border Trade Services
ICICI Bank offers a range of cross border trade services to its

correspondent banks. We have identified major foreign trade locations
across the country and offer trade services through these locations. All
branches are linked with an integrated communication channel to expedite
transactions. The services offered by us are:
• Advising and confirming of documentary letters of credit

• Confirmation/ reissuance of standby LCs and guarantees
• Documentary collections/ open account transactions
• Payment processing and distribution
• Negotiation of documents
VOSTRO Accounts

34
ICICI Bank offers VOSTRO accounts to its correspondent relationships

across the globe. This technologically advanced product gives access to all
the clearing systems in India and thus disbursements can be made to even
the remote corners of the country.
• Account transfers to ICICI Bank beneficiaries

• Real time electronic fund transfers to Non- ICICI Bank account
holders
• Tracking of the remittances
• Remittance instructions through SWIFT or ICICI Bank's proprietary
software
Industry Specific Loans

Every industry has its own set of unique challenges and requirements. At
ICICI Bank, it designed industry-specific solutions. It offers dedicated
teams for each industry group and products and services tailored to meet
your industry's unique needs.
Construction
ICICI Bank's in-house construction specialists will ensure that your

business is able to take full advantage of these opportunities. Starting from
the bidding process, through implementation of the project up to the defect
liability period, our specialists will guide you with customised solutions to
tackle all challenges.
Working Capital
Cash Credit
• Working capital as cash-credit facility (with charge on current assets)

and Working Capital Demand Loan
• Facility for a period of 12 months
• Floating interest rate. Interest levied only on amount utilized.
Bank Guarantee

35
ICICI Bank's Bank Guarantees (BG) are available to you against minimal
requirements and in the shortest possible time. Bank Guarantees (BG) are
also available in foreign currency for approved purposes as defined under
FEMA.
The ICICI Bank Edge
• Maximum tenor of guarantee 36 months (and 60 months for NHAI/

PMGSY projects)
• Competitively priced and comfortable margins
Educational Institutions
Private or public; primary, secondary or higher education - an educational
institution has unique requirements. And at ICICI Bank we understand that.
ICICI Bank has been working with accredited educational institutes across
India. This experience gives us the edge to advise you for the growth and
expansion of your institution.
Term Loan
• To keep pace with the educational needs of our nation we offer Term
Loans for establishment of additional capacities for existing educational
institutes.
• Term Loans are structured with flexible options of repayment, based
on the needs of the project and offered with competitive prices.
• Foreign currency loans also available.
Pharmaceuticals
Whether it's the challenges of Schedule M or awareness of best practices,
nobody understands the fundamental issues of the pharma business better
than you. Except, perhaps, ICICI Bank. We have the expertise needed to
help you keep pace with the developments in this fast-evolving industry.
Our team of pharma specialists are driven to add value to your business
through focus, innovation and sharing.

36
Whether you are involved with formulations or APIs – for local or global
markets, what you get is a potent mixture of industry understanding backed
by working capital facilities, forex services and special lending programs
customised for you.
Working Capital
Cash Credit
• Working capital as cash-credit facility (with charge on current assets)

• Facility for a period of 12 months
• Floating interest rate. Interest levied only on amount utilized.
• Flexibility of paying a minimum amount every month.
Working Capital Demand Loan

This can be offered from 50% to 80% of the overall Working Capital limit
with a special pricing and 100% utilisation over the term of the Demand
loan. This is a unique product and offers considerable cost saving.
Information Technology
The Information Technology industry is expected to grow to double its

current size by the year 2012. India's IT industry is expected to grow at an
annual average rate of 18% in the next five years. According to the
NASSCOM- McKinsey report on the IT industry of India, the industry is also
expected to cross the 100 billion US Dollar mark by 2011. One of the major
areas of growth for the IT industry of India is by tapping the potential in the
domestic market.
If you are in the business of IT services / IT enabled services / Hardware
distribution / our experts will assist you with working capital facilities and all
kinds of forex products and advisory services .
Working Capital Demand Loan in Foreign Currency

This is offered to the companies having substantial foreign currency inflows at
LIBOR plus rates, based on the availability

37
Advisory Services
Private Equity Placement

ICICI Bank's Small Enterprises Group's (SEG) Investment Banking team is
dedicated to provide niche and exclusive investment banking services.
The ICICI Bank Edge
Capital Raising
At times for a growing company, the amount of capital that a promoter can infuse
in the business becomes limited. Businesses can be self sufficient for capital
needs in their nascent and initial growth phases. However to meet expansion and
growth plans, external capital is imperative. ICICI Bank, with lending experience,
fully understand this and help clients raise equity to fund growth. It has
developed a strong network of domestic and international investors who are keen
to partner with such success stories in India and these players solicit our advice
for investing into such companies. .
Buy And Sell Side Advisory

Inorganically adding growth to a business or hiving off non-core activities or
opportunity to realize right value for the business created or an instance of taking
a company on a bigger scale are the ways to strategize today. ICICI Bank
provide assistance on both buy side and sell side transaction. With a large client
franchise built, more than 10,000 asset clients and international linkages in
developed economies, ICICI Bank can bring in the best synergy partner to
conclude a sell side or buy side advisory assignment.

38

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Jaipuria Institute Of Management,Lucknow

JAIPURIA INSTITUTE OF MANAGEMENT

Mr. VINAY MOHAMMED ARIF KHAN

Corporate Banking Of ICICI

ICICI ,Hazratganj MANOJ KUMAR MAURYA

It indeed gives me a great pleasure in acknowledging from the very core of my

I am indebted to my faculty Mrs. Reena Agarwal of my college Jaipuria Institute

Corporate Banking Of ICICI

CARPORATE BANKING OF ICICI BANK

From cash management to corporate finance, from forex to acquisition

Corporate Banking Of ICICI

5.It support international business by meeting working capital requirements of

Cash Management Services

ICICI Bank's Cash Management Services offer a full range of receivable

ICICI Bank provides a gamut of products and services, ensuring

Products and Services

Corporate Banking Of ICICI

1. Widest network across India

2. Comprehensive range of CMS products

3. Strong logistics support

4.Advanced technology support and a highly competent team

5.Dedicated and trained Customer Care

6. Ensuring timely deposit of collections

7.Timely execution of disbursement request

1. Local cheque collection through ICICI Bank branches

a.Correspondent bank branches

2. Upcountry cheque collection through:

a. ICICI Bank branches

3.RTGS integrated collections

4.Electronic collections (through auto-debit)

5.Cash collections through our Doorstep banking services

Corporate Banking Of ICICI

• Single file upload to effect multiple modes of payments

a. Physical modes include cheques, demand drafts

Corporate Banking Of ICICI

• Web-based access for uploading and authorising printing requests

ICICI Bank customers experience fewer delays in receiving payment,

Online Trade MIS Services

Corporate Banking Of ICICI

Trade MIS is available in Corporate Internet account wherein information is

E advices would help in providing faster information of your daily

Corporate Banking Of ICICI

Structured Trade Finance

The current account product provides a host of services like Anywhere

Corporate Banking Of ICICI

enables online tracking of the account, execution of transactions and so on.

General features of Current Accounts include:

• Multi-location Funds transfer

Roaming Current Account

The following features are also available with all variants:

• Multi-city cheques/Local cheques

Corporate Banking Of ICICI

Made2Order Current Account

Special features of the M2O Account include:

• Flexibility in deciding the MAB

Corporate Banking Of ICICI

• Specialised and dedicated services

• Funding through a debit to the operative account/cheque for clearing

Corporate Banking Of ICICI

• While interest is compounded quarterly, payment of interest is

• Wide range of tenures

Structured Products for Corporates

Structured products are normally offered to corporate clients in the form of