A

Project Study Report

OnA Study on Customer Satisfaction in Indian Retail Banking

With Special Reference to

ICICI BANK

Submitted in partial fulfillment for the

Award of degree of

MASTER OF BUSINESS ADMINISTRATION

Submitted by Submitted to

Ashish Kumar Goyal Dr. Alka Jain

MBA Part – II (4th sem.) (Asst. Professor)

(2010-2011)

SUBODH INSTITUTE OF MANAGEMENT & CAREER STUDIES

BR Shah MBA Block, Rambagh Circle, Jaipur- 302004

1

CERTIFICATE OF FACULTY GUIDE

This is to certify that the Project entitled “A Study on Customer

Satisfaction in Indian Retail Banking” in Jaipur City (conducted during

the Project Study Undertaken at ICICI Bank, Jaipur) submitted in partial

fulfillment for the award of degree of “MASTER OF BUSINESS

ADMINISTRATION” to “Subodh Institute of Management & Career

Studies (SIMCS), Jaipur” is a record of bonafide research work carried

out by Ashish Kumar Goyal under my supervision and guidance.

Date………………Place………….. Dr. Alka Jain

(Asst. Professor)

2

Student Declaration

I hereby declare that this Project Study Report entitled “A Study on Customer

Satisfaction in Indian Retail Banking” With Special Reference of ICICI Bank

Jaipur submitted in partial fulfillment of requirement of Master of Business

Administration (MBA) to the Subodh Institute of Management & Career

Studies (SIMCS), Jaipur is based on primary and secondary data founded by me

in various department, books, magazines and websites.

Place:- Jaipur Ashish Kumar Goyal

Date:………………..

3

PREFACE

MBA is the one of the most reputed professional coures in the field of

Management.It include theory as well as its practical knowledge. Project Study is

an integral part of MBA programe, as through this students acquire knowledge of

real happenings of the surroundings. So in Fourth semester each student at

“Subodh Institute of Management & Career Studies (SIMCS), Jaipur” need to

submit a Project Study report.

Someone has greatly said that practical knowledge is far better than classroom

teaching. During this project I have fully realized this and come to know about the level

of satisfaction of retail banking customers and the factors of customer satisfaction in

retail banks.

The Subject of my study was “A Study On Customer Satisfaction In Indian Retail

Banking With Special Reference Of ICICI Bank.”. Customer Satisfaction is one of the

most significant factors for the profitability of retail banking in India. The Report consists

of all the necessary information that relates to effective recommendations that are made

to the bank for increasing their customer satisfaction level.

4

ACKNOWLEGDEMENT

“Expression of feelings by words makes them less significant when it comes

to make statement of gratitude”

With regard to my Project with ICICI Bank, Jaipur, I would like to thank each and every

one who offered help, guidelines and support whenever required.

I express my sincere thanks to my project guide Dr Alka Jain, for guiding me right from

the inception till the successful completion of the project. I sincerely acknowledge her

for extending her valuable guidance, support for literature, critical reviews of project and

the report and above all the moral support she had provided to me with all stages of this

project.

Last, but not the least, my heartfelt love for my parents and my friends, whose constant

support and blessings kept me enthusiastic throughout this project.

Ashish Kumar Goyal

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EXECUTIVE SUMMARY

The banking industry like many other financial services industries is facing a rapidly

changing market, new technologies, economic uncertainties, fierce competition and

more demanding customers ; and the changing climate has presented an

unprecedented set of challenges. In the current circumstances a questions arises

whether the customers are satisfied or not and what are the elements of retail banking

which lead to the satisfaction or dissatisfaction of customers. The knowledge of current

levels of satisfaction and , in particular, the primary factors of satisfaction are beneficial

to those in the industry, thereby allowing them to focus and further strengthen the key

areas that lead to highly satisfied customers . this research postulates on the present

levels of satisfaction , and also tries to explore the factors that lead to customer

satisfaction in retail banking in India .data from 25 survey respondents were collected

from one branch of one of the prominent retail bank (ICICI Bank) in the Jaipur. The

findings revealed that customer satisfaction, a transaction – specific attribute are

dependent on several factors, which concur with extensive academic literature.

Though private banking evolved in late 80’s in Asia, in India its not more than 5 years

old. ICICI started it in Aug 2002 and since then it has been a remarkable success.

Today there are enormous solutions to cater client needs but what suits best to a client

is where private banking fits in. Every client will have different needs, liking and

preferences. So a customized portfolio for every client is the need of the day.

This research will highlight more on the product portfolio of ICICI Private Banking, how

they have changed or innovatively structured to be attractive and competitive.

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CHAPTER TABLE OF CONTENTS PAGE NO.CHAPTER-1 INTRODUCTION OF THE INDUSTRY 8-40

Introduction to Indian Banking Industry 9-15

Introduction to Banking 16-17Banking System in India 18-26Role of Banks 27-30Products & Services offered by Banks 31-40

CHAPTER-2 INTRODUCTION TO ORGANIZATION 41-79

Introduction of ICICI Bank 42-52Key subsidiaries of ICICI Bank 53-60

Products & Services Offered By ICICI Bank 61-79

CHAPTER-3 INTRODUCTION TO PROJECT TOPIC 80-88

Introduction of Customer Satisfaction 81-84

Objective of Customer Satisfaction 85-88

CHAPTER-4 LITREATURE REVIEW 89-93

CHAPTER-5 RESEARCH METHODOLOGY 94-97

Title of the Study 95Objective of the Study 95Type of Research 96Data Collection & Sample Design 96

Scope of the study 97Limitation of the project 97

CHAPTER-6 FACTS & FINDINGS 98-99

CHAPTER-7 DATA ANALYSIS & INTERPRETATION 100-114

CHAPTER-8 SWOT ANALYSIS OF ICICI BANK 115-119

CHAPTER-9 CONCLUSION 120-121

CHAPTER-10 RECOMMENDATIONS & SUGGESTIONS 122-123

CHAPTER-11 ANNEXURE 124-126

CHAPTER-12 BIBLIOGRAPHY 127-128

7

CHARTS

Chart-1 Customer have Account with ICICI Bank

Chart-2 Attributes compelled by the customers to open saving account in any

bank

Chart-3 Customers having Bank Account With ICICI Bank From how many years

Chart-4 Reason for preference of ICICI Bank

Chart-5 Medium for customer awareness about the services provided by ICICI

Bank

Chart-6 Thinking of the people about the Banks

Chart-7 Suitability of processing of loan for the customers

Chart-8 Opinion of the customers about the processing charges of loan

Chart-9 Type of loan Preferred by the customers of ICICI Bank

Chart-10 Customers Opinion about the interest rate charged on loan by the

ICICI bank

Chart-11 Internet banking availed by the customers of ICICI Bank

Chart-12 Reasons for not using Internet banking Service by the customers

Chart-13 Customer opinion towards the financial services provided by the ICICI

Bank

Chart-14 Level of Customer satisfaction towards the services provided by ICICI

Bank

8

CHAPTER 1

9

INTRODUCTION OF INDIAN BANKING INDUSTRY

Banking in India originated in the first decade of 18th century with The General Bank of India

coming into existence in 1786. This was followed by Bank of Hindustan. Both these banks are

now defunct. The oldest bank in existence in India is the State Bank of India being established

as "The Bank of Bengal" in Calcutta in June 1806. A couple of decades later, foreign banks

started their Calcutta operations in the 1850s. At that point of time, Calcutta was the most active

trading port, mainly due to the trade of the British Empire, and due to which banking activity took

roots there and prospered. The first fully Indian owned bank was the Allahabad Bank, which

was established in 1865.

By the 1900s, the market expanded with the establishment of banks such as Punjab National

Bank, in 1895 in Lahore and Bank of India, in 1906, in Mumbai - both of which were founded

under private ownership. The Reserve Bank of India formally took on the responsibility of

regulating the Indian banking sector from 1935. After India's independence in 1947, the Reserve

Bank was nationalized and given broader powers.

At the end of late-18th century, there were hardly any bank in India in the modern sense of the

term. At the time of the American Civil War, a void was created as the supply of cotton to Lan-

cashire stopped from the Americas. Some banks were opened at that time which functioned as

entities to finance industry, including speculative trades in cotton. With large exposure to specu-

lative ventures, most of the banks opened in India during that period could not survive and

failed. The depositors lost money and lost interest in keeping deposits with banks. Subse-

quently, banking in India remained the exclusive domain of Europeans for next several decades

until the beginning of the 20th century.

The Bank of Bengal, which later became the State Bank of India.

10

History Of Banking In India

Without a sound and effective banking system in India it cannot have a healthy economy. The

banking system of India should not only be hassle free but it should be able to meet new

challenges posed by the technology and any other external and internal factors.

For the past three decades India's banking system has several outstanding achievements to its

credit. The most striking is its extensive reach. It is no longer confined to only metropolitans or

cosmopolitans in India. In fact, Indian banking system has reached even to the remote corners

of the country. This is one of the main reason of India's growth process.

The government's regular policy for Indian bank since 1969 has paid rich dividends with the

nationalization of 14 major private banks of India.

Not long ago, an account holder had to wait for hours at the bank counters for getting a draft or

for withdrawing his own money. Today, he has a choice. Gone are days when the most efficient

11

Other Nationalized Banks

Other Nationalized Banks

RESERVE BANK OF INDIACentral Bank and supreme monetary

authority

RESERVE BANK OF INDIACentral Bank and supreme monetary

authority

Non Scheduled Banks

Non Scheduled Banks

Foreign Banks

Foreign Banks

Private Sector Private Sector

SBI & Associates

SBI & Associates

Regional Rural Banks

Regional Rural Banks

Urban Cooperatives

Urban Cooperatives

State Cooperatives

State Cooperatives

Scheduled Banks

Scheduled Banks

Cooperative

Cooperative

Public Sector Public Sector

Commercial

Commercial

bank transferred money from one branch to other in two days. Now it is simple as instant

messaging or dial a pizza. Money has become the order of the day.

The first bank in India, though conservative, was established in 1786. From 1786 till today, the

journey of Indian Banking System can be segregated into three distinct phases. They are as

mentioned below:

Early phase from 1786 to 1969 of Indian Banks

Nationalization of Indian Banks and up to 1991 prior to Indian banking sector Reforms.

New phase of Indian Banking System with the advent of Indian Financial & Banking Sector

Reforms after 1991.

The first bank in India, though conservative, was established in 1786. From 1786 till today, the

journey of Indian Banking System can be segregated into three distinct phases. They are as

mentioned below:

PHASE I - Early phase from 1786 to 1969 of Indian Banks

PHASE II - Nationalization of Indian Banks and up to 1991

PHASE III - Indian Financial & Banking Sector Reforms after 1991.

PHASE I:

The General Bank of India was set up in the year 1786. Next came Bank of Hindustan and

Bengal Bank. The East India Company established Bank of Bengal (1809), Bank of Bombay

(1840) and Bank of Madras (1843) as independent units and called it Presidency Banks. These

three banks were amalgamated in 1920 and Imperial Bank of India was established which

started as private shareholders banks, mostly Europeans shareholders. During the first phase

the growth was very slow and banks also experienced periodic failures between 1913 and 1948.

There were approximately 1100 banks, mostly small. To streamline the functioning and activities

of commercial banks, the Government of India came up with The Banking Companies Act, 1949

which was later changed to Banking Regulation Act 1949 as per amending Act of 1965 (Act No.

23 of 1965). Reserve Bank of India was vested with extensive powers for the supervision of

banking in India as the Central Banking Authority. During those day’s public has lesser

confidence in the banks. As an aftermath deposit mobilization was slow. Abreast of it the

savings bank facility provided by the Postal department was comparatively safer. Moreover,

funds were largely given to the traders.

12

PHASE II:

Government took major steps in this Indian Banking Sector Reform after independence. In

1955, it nationalized Imperial Bank of India with extensive banking facilities on a large scale

especially in rural and semi-urban areas. Second phase of nationalization Indian Banking Sector

Reform was carried out in 1980 with seven more banks. This step brought 80% of the banking

segment in India under Government ownership.

The following are the steps taken by the Government of India to Regulate Banking Institutions in

the Country:

1949: Enactment of Banking Regulation Act.

1955: Nationalization of State Bank of India.

1959: Nationalization of SBI subsidiaries.

1961: Insurance cover extended to deposits.

1969: Nationalization of 14 major banks.

1971: Creation of credit guarantee corporation.

1975: Creation of regional rural banks.

1980: Nationalization of seven banks with deposits over 200 crore.

After the nationalization of banks, the branches of the public sector bank India raised to

approximately 800% in deposits and advances took a huge jump by 11,000%.Banking in the

sunshine of Government ownership gave the public implicit faith and immense confidence about

the sustainability of these institutions.

PHASE III

This phase has introduced many more products and facilities in the banking sector in its reforms

measure. In 1991, under the chairmanship of M Narasimham, a committee was set up by his

name which worked for the liberalization of banking practices.

The country is flooded with foreign banks and their ATM stations. Efforts are being put to give a

satisfactory service to customers. Phone banking and net banking is introduced. The entire

system became more convenient and swift. The financial system of India has shown a great

deal of resilience. It is sheltered from any crisis triggered by any external macroeconomics

shock as other East Asian Countries suffered. This is all due to a flexible exchange rate regime,

the foreign reserves are high, the capital account is not yet fully convertible, and banks and their

customers have limited foreign exchange exposure.

13

HISTORY OF BANKING

The period during the First World War (1914-1918) through the end of the Second World War

(1939-1945), and two years thereafter until the independence of India were challenging for the

Indian banking. The years of the First World War were turbulent, and it took toll of many banks

which simply collapsed despite the Indian economy gaining indirect boost due to war-related

economic activities. At least 94 banks in India failed during the years 1913 to 1918 as indicated

in the following table:

POST-

INDEPENDENCE

The partition of India in 1947 had adversely impacted the economies of Punjab and West Ben-

gal, and banking activities had remained paralyzed for months. India's independence marked

the end of a regime of the Laissez-faire for the Indian banking. The Government of India initi-

ated measures to play an active role in the economic life of the nation, and the Industrial Policy

Resolution adopted by the government in 1948 envisaged a mixed economy. This resulted into

greater involvement of the state in different segments of the economy including banking and fi-

nance. The major steps to regulate banking included:

1. In 1948, the Reserve Bank of India, India's central banking authority, was nationalized, and

it became an institution owned by the Government of India.

2. In 1949, the Banking Regulation Act was enacted which empowered the Reserve Bank of

India (RBI) "to regulate, control, and inspect the banks in India."

14

YearsNumber of banks

that failed

Authorized capital

(Rs. Lakes)

Paid-up Capital

(Rs. Lakes)

1913 12 274 35

1914 42 710 109

1915 11 56 5

1916 13 231 4

1917 9 76 25

1918 7 209 1

3. The Banking Regulation Act also provided that no new bank or branch of an existing bank

may be opened without a license from the RBI, and no two banks could have common direc-

tors.

However, despite these provisions, control and regulations, banks in India except the State

Bank of India, continued to be owned and operated by private persons. This changed with the

nationalization of major banks in India on 19th July, 1969

NATIONALISATION

By the 1960s, the Indian banking industry has become an important tool to facilitate the devel-

opment of the Indian economy. At the same time, it has emerged as a large employer, and a de-

bate has ensued about the possibility to nationalize the banking industry. Indira Gandhi, the-

then Prime Minister of India expressed the intention of the GOI in the annual conference of the

All India Congress Meeting in a paper entitled "Stray thoughts on Bank Nationalization." The pa-

per was received with positive enthusiasm. Thereafter, her move was swift and sudden, and the

GOI issued an ordinance and nationalized the 14 largest commercial banks with effect from the

midnight of July 19, 1969. Jayaprakash Narayan, a national leader of India, described the step

as a "masterstroke of political sagacity." Within two weeks of the issue of the ordinance, the

Parliament passed the Banking Companies (Actuation and Transfer of Undertaking) Bill, and it

received the presidential approval on 9th August, 1969.

A second dose of nationalization of 6 more commercial banks followed in 1980. The stated rea-

son for the nationalization was to give the government more control of credit delivery. With the

second dose of nationalization, the GOI controlled around 91% of the banking business of India.

After this, until the 1990s, the nationalized banks grew at a pace of around 4%, closer to the av-

erage growth rate of the Indian economy.

1955 : Nationalisation of State Bank of India.

1959 : Nationalisation of SBI subsidiaries.

1969 : Nationalisation of 14 major banks.

1980 : Nationalisation of seven banks with deposits over 200 crores.

15

LIBERALISATION

In the early 1990s the then NarasimhaRao government embarked on a policy of liberalization

and gave licenses to a small number of private banks, which came to be known as New Gener-

ation tech-savvy banks, which included banks such as UTI Bank(now re-named as Axis Bank)

(the first of such new generation banks to be set up), ICICI Bank and HDFC Bank. This move,

along with the rapid growth in the economy of India, kick started the banking sector in India,

which has seen rapid growth with strong contribution from all the three sectors of banks,

namely, government banks, private banks and foreign banks.

The next stage for the Indian banking has been setup with the proposed relaxation in the norms

for Foreign Direct Investment, where all Foreign Investors in banks may be given voting rights

which could exceed the present cap of 10%, at present it has gone up to 49% with some restric-

tions.

The new policy shook the Banking sector in India completely. Bankers, till this time, were used

to the 4-6-4 method (Borrow at 4%; Lend at 6%; Go home at 4) of functioning. The new wave

ushered in a modern outlook and tech-savvy methods of working for traditional banks. All this

led to the retail boom in India. People not just demanded more from their banks but also re-

ceived more.

16

INTRODUCTION OF BANKING

MEANING AND DEFINITION:

Bank is an institution that deals in money and its substitutes and provides crucial

financial services. The principal type of baking in the modern industrial world is commercial

banking & central banking.

Banking Means "Accepting Deposits for the purpose of lending or Investment of deposits

of money from the public, repayable on demand or otherwise and withdraw by cheque, draft or

otherwise."

-Banking Companies (Regulation) Act,1949

The concise oxford dictionary has defined a bank as "Establishment for custody of

money which it pays out on customers order." In fact this is the function which the bank

performed when banking originated.

"Banking in the most general sense, is meant the business of receiving, conserving &

utilizing the funds of community or of any special section of it."

-By H. Wills & J. Bogan

"A banker of bank is a person, a firm, or a company having a place of business where

credits are opened by deposits or collection of money or currency or where money is advanced

and waned.

-By Findlay Sheras

Thus,

A Bank :

Accept deposits of money from public,

17

Pays interest on money deposited with it.

Lends or invests money

Repays the amount on demand,

Allow the money deposited to be withdrawn by cheque or draft.

Banks have played a pivotal role in the process of development of the district over the years,

especially after the formation of the district in 1993. Apart from dispensing credit, the Banks

have also brought about social changes. The contribution of the banking sector in the field of

overall development of the district is elaborated in the following paragraphs.

At the beginning of the 20th century, Indian economy was passing through a relative period of

stability. Around five decades have elapsed since the India's First war of Independence, and the

social, industrial and other infrastructure have developed. At that time there were very small

banks operated by Indians, and most of them were owned and operated by particular communi-

ties. The banking in India was controlled and dominated by the presidency banks, namely, the

Bank of Bombay, the Bank of Bengal, and the Bank of Madras - which later on merged to form

the Imperial Bank of India, and Imperial Bank of India, upon India's independence, was re-

named the State Bank of India. There were also some exchange banks, as also a number of In-

dian joint stock banks. All these banks operated in different segments of the economy.

The presidency banks were like the central banks and discharged most of the functions of cen-

tral banks. They were established under charters from the British East India Company. The ex-

change banks, mostly owned by the Europeans, concentrated on financing of foreign trade. In-

dian joint stock banks were generally undercapitalized and lacked the experience and maturity

to compete with the presidency banks, and the exchange banks. There was potential for many

new banks as the economy was growing. Lord Carson had observed then in the context of In-

dian banking: "In respect of banking it seems we are behind the times. We are like some old

fashioned sailing ship, divided by solid wooden bulkheads into separate and cumbersome com-

partments.”

Under these circumstances, many Indians came forward to set up banks, and many banks were

set up at that time, a number of which have survived to the present such as Bank of India and

Corporation Bank, Indian Bank, Bank of Baroda, and Canara Bank.

18

Indian banking sector can be divided mainly into four broad categories namely public sector

Banks, old private sector banks, new private sector banks, and foreign banks. The other

categories of banks include co-operative banks and regional rural banks. Since these banks

don’t form a substantial chunk of the banking system, we will focus on the first four categories.

BANKING SYSTEM IN INDIA

CENTRAL BANK: RESERVE BANK OF INDIA

NATIONALISED BANK IN INDIA

The Banking System in India is dominated by nationalized banks. The Nationalization of Banks

in India took place in 1969 by Mrs. Indira Gandhi the then Prime Minister. The major objective

Behind Nationalization Banks was to spread banking Infrastructure in Rural areas and make

available cheap finance to Indian farmers. Fourteen banks were nationalized in 1969. These

Banks were

State Bank of India

Allahabad Bank

Andhra Bank

19

BANKS IN INDIA

CENTRAL BANK NATIONALISED BANK

BANKS

PRIVATE BANKS FOREIGN BANKS

Bank of Baroda

Bank of India

Bank of Maharashtra

Canara Bank

Central Bank of India

Corporation Bank

Dena Bank

Indian Bank

Indian Overseas Bank

Oriental Bank of Commerce

Punjab & Sind Bank

Punjab National Bank

Syndicate Bank

Union Bank of India

PRIVATE BANK IN INDIA

All the banks in India were earlier private banks. They were founded in the pre-independence

era to cater to the banking needs of the people. But after nationalization of banks in 1969 public

sector banks came to occupy dominant role in the banking structure. Private sector banking in

India received a fillip in 1994 when Reserve Bank of India encouraged setting up of private

banks as part of its policy of liberalization of the Indian Banking Industry. Housing Development

Finance Corporation Limited (HDFC) was amongst the first to receive an 'in principle' approval

from the Reserve Bank of India (RBI) to set up a bank in the private sector.

Axis Bank

Bharat Overseas Bank

Catholic Syrian Bank

Centurion Bank of Punjab

City Union Bank

Development Credit Bank

Dhanalakshmi Bank

Federal Bank

Ganesh Bank of Kurundwad

20

HDFC Bank

ICICI Bank

IDBI Bank

IndusInd Bank

ING Vysya Bank

Jammu & Kashmir Bank

Karnataka Bank Limited

Karur Vysya Bank

Kotak Mahindra Bank

Lakshmi Vilas Bank

Lord Krishna Bank

Nainital Bank

Ratnakar Bank

SBI Commercial and International Bank

FOREIGN BANKS IN INDIA

Foreign Banks are likely to succeed in their niche markets and be the innovators in terms of

technology introduction in the domestic scenario. The outlook for the private sector banks

indeed looks to be more promising vis-à-vis other banks. While their focused operations lower

but more productive employee force etc will stand them good, possible acquisitions of PSU

banks will definitely give them the much needed scale of operations and access to lower cost of

funds.

Standard charted Bank

Deutsche Bank

Bank of America

Citi Bank

ABN Amro Bank

HSBC Bank

21

FUNCTIONS OF BANKS

PRIMARY FUNCTIONS

Acceptance of Deposits

Making loans & advances

Loans

Overdraft

Cash Credit

Discounting of bills of exchange

SECONDARY FUNCTIONS

Agency functions

Collection of cheques & Bills etc.

Collection of interest and dividends.

Making payment on behalf of customers

Purchase & sale of securities

Facility of transfer of funds

To act as trustee & executor.

UTILITY FUNCTIONS :

Safe custody of customers valuable articles & securities.

Underwriting facility

Issuing of traveler’s cheque letter of credit

22

Facility of foreign exchanges

Providing trade information

Provide information regarding credit worthiness of their customer.

CLASSIFICATION OF BANKS

CLASSIFICATION ON BASIS OF OWNERSHIP

On the basis of ownership banks are of the following types :

1. PUBLIC SECTOR BANK

Public sector banks are those banks which are owned by the Government. The Govt.

runs these Banks. In India 14 banks were nationalized in 1969 & in 1980 another 6

banks were also nationalized. Therefor in 1980 the number of nationalized bank 20. But

at present there are 9 banks are nationalized. All these banks are belonging to public

sector category. Welfare is their principle objective.

2. PRIVATE SECTOR BANKS

These banks are owned and run by the private sector. Various banks in the country such

as ICICI Bank, HDFC Bank etc. An individual has control over their banks in preparation

to the share of the banks held by him.

3. CO-OPERATIVE BANKS

Co-operative banks are those financial institutions. They provide short term & medium

term loans to their members. Co-operative banks are in every state in India. Its branches

at district level are known as the central co-operative bank. The central co-operative

bank in turn has its branches both in the urban & rural areas. Every state co-operative

bank is an apex bank which provides credit facilities to the central co-operative bank. It

mobilized financial resources from richer section of urban population by accepting

23

deposit and creating the credit like commercial bank and borrowing from the money mkt.

It also gets funds from RBI.

ii ACCORDING TO RESERVE BANK OF INDIA ACT 1935

Banks are classified into following two categories son the basis of reserve bank Act

1934.

1. SCHEDULED BANK

These banks have paid up capital of at least Rs. 5 lacks. These are like a joint stock

company. It is a co-operative organization. These banks find their mention in the second

schedule of the reserve bank.

2. NON SCHEDULED BANK

These banks are not mentioned in the second schedule of reserve bank paid up capital

of these banks is less then Rs.5 lacs. The no. such bank is gradually tolling in India.

iii CLASSIFICATION ACCORDING TO FUNCTION

On the basis of functions banks are classified as under :-

1. COMMERCIAL BANKS

The commercial banks generally extend short-term loans to businessmen & traders.

Since their deposits are for a short-period only. They cannot lend money for a long

period. These banks reform various types or agency job for their customers. These

banks are not in a position to grant long-term loans to industries because their deposits

are only for a short period. The majority of joint stock banks in India are commercial

banks which finance trade & commerce only.

2. SAVING BANKS

The principle function of these banks is to collect small saving across the country and

put them into productive use. These banks have shown marked development in

24

Germany & Japan. These banks are established in HAMBURG City of Germany in 1765.

In India a department of post offices functions as a saving banks.

3. FOREIGN EXCHANGE BANKS

These are special types of banks which specialize in financing foreign trade. Their main

function is to make international payments through purchase & sale of exchange bills. As

it well known, the exporters of a country prefer to receive the payments for exports in

their own currency. Thus these banks convert home currency into foreign currency and

vice versa. It is on this account that these banks have to keep with themselves stock of

the currency of various countries. Along with that, they have to open branches in foreign

countries to carry on their business.

4. INDUSTIRAL BANKS

The industrial banks extends long term loans to industries. In fact, they also help

industrials firms to sell their debentures and shares. Sometimes, they even underwrite

the debentures & shares of big industrial concerns.

5. INDIGENIOUS BANKS

These banks found their origin in India. These banks made a significant contribution to

the development of agricultural and industries before independence. Mahajans, rural

moneylenders have been the forerunner of these banks in India.

6. CENTRAL BANK

The central bank occupies a pivotal position in the monetary and banking structure of the

country. The central bank is the undisputed leader of the money market. As such it

supervises controls and regulates the activities of commercial banks affiliated with it. The

central bank is also the higher monetary institution in the country charged with the duty &

responsibility of carrying out the monetary policy formulated by the government. India's

central bank known as the reserve bank of India was set up in 1935.

7. AGRICULTURAL BANK

25

The commercial and the industrial banks are not in a position to meet the credit

requirements of agriculture. Hence, there arises the need for setting up special type of

banks of finance agriculture. The credit requirements of the farmers are two types. Firstly

the farmers require short term loans to buy seeds, fertilizers, ploughs and other inputs.

Secondly, the farmers require long-term loans to purchase land, to effect permanent

improvements on the land to buy equipment and to provide for irrigation works. There

are two types of agriculture banks.

1. Agriculture co-operative banks, and

2. Land mortgage banks. The farmer provide short-term credit, while the letter

extend long-term loans to the farmer

MAJOR PLAYERS OF BANKING SECTOR

PRIVATE BANK IN INDIA

PUBLIC BANKS IN INDIA

26

FOREIGN BANKS IN INDIA

27

Role of Banks:

Banks play a positive role in economic development of a country as repositories

of community’s savings and as purveyors of credit. Indian Banking has aided the economic de-

velopment during the last fifty years in an effective way. The banking sector has shown a re-

markable responsiveness to the needs of planned economy. It has brought about a consider-

able progress in its efforts at deposit mobilization and has taken a number of measures in the

recent past for accelerating the rate of growth of deposits. As recourse to this, the commercial

banks opened branches in urban, semi-urban and rural areas and have introduced a number of

attractive schemes to foster economic development.

The activities of commercial banking have growth in multi-directional ways as

well as multi-dimensional manner. Banks have been playing a catalytic role in area develop-

ment, backward area development, extended assistance to rural development all along helping

agriculture, industry, international trade in a significant manner. In a way, commercial banks

have emerged as key financial agencies for rapid economic development.

By pooling the savings together, banks can make available funds to specialized

institutions which finance different sectors of the economy, needing capital for various purposes,

risks and durations. By contributing to government securities, bonds and debentures of term-

lending institutions in the fields of agriculture, industries and now housing, banks are also pro-

28

viding these institutions with an access to the common pool of savings mobilized by them, to

that extent relieving them of the responsibility of directly approaching the saver. This intermedia-

tion role of banks is particularly important in the early stages of economic development and fi-

nancial specification. A country like India, with different regions at different stages of develop-

ment, presents an interesting spectrum of the evolving role of banks, in the matter of inter-medi-

ation and beyond.

Mobilization of resources forms an integral part of the development process in In-

dia. In this process of mobilization, banks are at a great advantage, chiefly because of their net -

work of branches in the country. And banks have to place considerable reliance on the mobiliza-

tion of deposits from the public to finance development programmes. Further, deposit mobaliza-

tion by banks in India acquired greater significance in their new role in economic development.

Commercial banks provide short-term and medium-term financial assistance.

The short-term credit facilities are granted for working capital requirements. The medium-term

loans are for the acquisition of land, construction of factory premises and purchase of machinery

and equipment. These loans are generally granted for periods ranging from five to seven years.

They also establish letters of credit on behalf of their clients favoring suppliers of raw

materials/machinery (both Indian and foreign) which extend the banker’s assurance for payment

and thus help their delivery. Certain transaction, particularly those in contracts of sale of Gov-

ernment Departments, may require guarantees being issued in lieu of security earnest money

deposits for release of advance money, supply of raw materials for processing, full payment of

bills on the assurance of the performance etc. Commercial banks issue such guarantees also.

The Role of Reserve Bank of India (RBI) – Banker’s Bank:

The Reserve Bank of India (RBI) is the central bank of India, and

was established on April 1, 1935 in accordance with the provisions of the Reserve Bank of India

Act, 1934. Since its inception, it has been headquartered in Mumbai. Though originally privately

owned, RBI has been fully owned by the Government of India since nationalization in 1949.

RBI is governed by a central board (headed by a Governor) appointed by the

Central Government. The current governor of RBI is Dr.Y.Venugopal Reddy (who succeeded

Dr. Vimal Jalan on September 6, 2003). RBI has 22 regional offices across India. The Reserve

Bank of India was set up on the recommendations of the Hilton Young Commission. The com-

mission submitted its report in the year 1926, though the bank was not set up for nine years.

29

Main Objective:

Monetary Authority

Formulates, implements and monitors the monetary policy.

Objective: maintaining price stability and ensuring adequate flow of credit to productive

sectors.

Regulator and supervisor of the financial system

Prescribes broad parameters of banking operations within which the country’s banking

and financial system functions.

Objective: maintain public confidence in the system, protect depositors’ interest and pro-

vide cost-effective banking services to the public. The Banking Ombudsman Scheme

has been formulated by the Reserve Bank of India (RBI) for effective redressal of com-

plaints by bank customers

Manager of Exchange Control

Manages the Foreign Exchange Management Act, 1999.

Objective: to facilitate external trade and payment and promote orderly development and

maintenance of foreign exchange market in India.

Issuer of currency

Issues and exchanges or destroys currency and coins not fit for circulation.

Objective: to give the public adequate quantity of supplies of currency notes and coins

and in good quality.

Developmental role

Performs a wide range of promotional functions to support national objectives.

Related Functions

Banker to the Government: performs merchant banking function for the central and the

state governments; also acts as their banker.

Banker to banks: maintains banking accounts of all scheduled banks.

Owner and operator of the depository (SGL) and exchange (NDS) for government

bonds.

30

There is now an international consensus about the need to focus the tasks of a central bank

upon central banking. RBI is far out of touch with such a principle, owing to the sprawling man-

date described above.

Supervisory Functions:

In addition to its traditional central functions, the Reserve bank has certain non-

monetary functions of the nature of supervision of banks and promotion of sound banking in In-

dia. The Reserve Bank Act, 1934, and the Banking Regulation Act, 1949 have given the RBI

wide powers of supervision and control over commercial and cooperative banks, relating to li-

censing and establishments, branch expansion, liquidity of their assets, management and meth-

ods of working, amalgamation, reconstruction and liquidation. The RBI is authorized to carry out

periodical inspections of the banks and to call for returns and necessary information from them.

The nationalization of 14 major Indian scheduled banks in July 1969 has imposed new responsi-

bilities on the RBI for directing the growth of banking and credit policies towards more rapid de-

velopment of the economy and realization of certain desired social objectives. The supervisory

functions of the RBI have helped a great deal in improving the standard of banking in India to

develop on sound lines and to improve the methods of their operation.

Promotional Functions:

With economic growth assuming a new urgency since Independence, the range

of the Reserve Bank’s functions have steadily widened. The Bank now performs a variety of de-

velopmental and promotional functions, which, at one time, were regarded as outside the nor-

mal scope of central banking. The Reserve Bank was asked to promote banking habit, extend

banking facilities to rural and semi-urban areas, and establish and promote new specialized fi-

nancing agencies. Accordingly, the Reserve bank has helped in the setting up of the IFCI and

the SFC: it set up the Deposit Insurance Corporation of India in 1963 and the Industrial Recon-

struction Corporation of India in 1972. These institutions were set up directly or indirectly by the

Reserve Bank to promote saving habit and to mobilize savings, and to provide industrial finance

as well as agricultural finance. As far back as 1935, the RBI set up the Agricultural Credit De-

31

partment to provide agricultural credit. But only since 1951 the Bank’s role in this field has be-

come extremely important. The Bank has developed the co-operative credit movement to en-

courage saving, to eliminate money-lenders from the villages and to route its short term credit to

agriculture. The RBI has set up the Agricultural Refinance and Development Corporation to pro-

vide long-term finance to farmers.

PRODUCTS AND SERVICES OFFERED BY BANKS

Broad Classification of Products in a bank:

The different products in a bank can be broadly classified into:

Retail Banking.

Trade Finance.

Treasury Operations.

Retail Banking and Trade finance operations are conducted at the branch level while the whole-

sale banking operations, which cover treasury operations, are at the hand office or a designated

branch.

Retail Banking:

Deposits

Loans, Cash Credit and Overdraft

Negotiating for Loans and advances

Remittances

Book-Keeping (maintaining all accounting records)

Receiving all kinds of bonds valuable for safe keeping

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Trade Finance:

Issuing and confirming of letter of credit.

Drawing, accepting, discounting, buying, selling, collecting of bills of exchange, promis-

sory notes, drafts, bill of lading and other securities.

Treasury Operations:

Buying and selling of bullion. Foreign exchange

Acquiring, holding, underwriting and dealing in shares, debentures, etc.

Purchasing and selling of bonds and securities on behalf of constituents.

The banks can also act as an agent of the Government or local authority. They insure,

guarantee, underwrite, participate in managing and carrying out issue of shares, debentures,

etc.

Apart from the above-mentioned functions of the bank, the bank provides a whole lot of

other services like investment counseling for individuals, short-term funds management and

portfolio management for individuals and companies. It undertakes the inward and outward re-

mittances with reference to foreign exchange and collection of varied types for the Government.

Common Banking Products Available:

Some of common available banking products are explained below:

1) Credit Card: Credit Card is “post paid” or “pay later” card that draws from a credit line-

money made available by the card issuer (bank) and gives one a grace period to pay. If the

amount is not paid full by the end of the period, one is charged interest.

A credit card is nothing but a very small card containing a means of identification, such

as a signature and a small photo. It authorizes the holder to change goods or services to his ac-

count, on which he is billed. The bank receives the bills from the merchants and pays on behalf

of the card holder.

33

These bills are assembled in the bank and the amount is paid to the bank by the card holder to -

tally or by installments. The bank charges the customer a small amount for these services. The

card holder need not have to carry money/cash with him when he travels or goes for purchas-

ing.

Credit cards have found wide spread acceptance in the ‘metros’ and big cities. Credit

cards are joining popularity for online payments. The major players in the Credit Card market

are the foreign banks and some big public sector banks like SBI and Bank of Baroda. India at

present has about 3 million credit cards in circulation.

2) Debit Cards: Debit Card is a “prepaid” or “pay now” card with some stored value. Debit

Cards quickly debit or subtract money from one’s savings account,or if one were taking out

cash. Every time a person uses the card, the merchant who in turn can get the money trans-

ferred to his account from the bank of the buyers, by debiting an exact amount of purchase from

the card. To get a debit card along with a Personal Identification Number (PIN).

When he makes a purchase, he enters this number on the shop’s PIN pad. When the

card is swiped through the electronic terminal, it dials the acquiring bank system – either Master

Card or Visa that validates the PIN and finds out from the issuing bank whether to accept or de-

cline the transaction. The customer never overspread because the amount spent is debited im-

mediately from the customer’s account. So, for the debit card to work, one must already have

the money in the account to cover the transaction. There is no grace period for a debit card pur-

chase. Some debit cards have monthly or per transaction fees.

Debit Card holder need not carry a bulky checkbook or large sums of cash when he/she

goes at for shopping. This is a fast and easy way of payment one can get debit card facility as

debit cards use one’s own money at the time of sale, so they are often easier than credit cards

to obtain.

The major limitation of Debit Card is that currently only some 3000-4000 shops country

wide accepts it. Also, a person can’t operate it in case the telephone lines are down.

3) Automatic Teller Machine: The introduction of ATM’s has given the customers the facility

of round the clock banking. The ATM’s are used by banks for making the customers dealing

easier. ATM card is a device that allows customer who has an ATM card to perform routine

34

banking transaction at any time without interacting with human teller. It provides exchange ser-

vices. This service helps the customer to withdraw money even when the banks ate closed. This

can be done by inserting the card in the ATM and entering the Personal Identification Number

and secret Password.

ATM’s are currently becoming popular in India that enables the customer to withdraw

their money 24 hours a day and 365 days. It provides the customers with the ability to withdraw

or deposit funds, check account balances, transfer funds and check statement information. The

advantages of ATM’s are many. It increases existing business and generates new business. It

allows the customers.

To transfer money to and from accounts.

To view account information.

To order cash.

To receive cash.

Advantages of ATM’s:

To the Customers

ATM’s provide 24 hrs. 7 days and 365 days a year service.

Service is quick and efficient

Privacy in transaction

Wider flexibility in place and time of withdrawals.

The transaction is completely secure – you need to key in Personal Identification Num-

ber (Unique number for every customer).

To Banks

Alternative to extend banking hours.

Crowding at bank counters considerably reduced.

35

Alternative to new branches and to reduce operating expenses.

Relieves bank employees to focus an more analytical and innovative work.

Increased market penetration.

ATM’s can be installed anywhere like Airports, Railway Stations, Petrol Pumps, Big

Business arcades, markets, etc. Hence, it gives easy access to the customers, for obtaining

cash.

The ATM services provided first by the foreign banks like Citibank, Grind lays bank and

now by many private and public sector banks in India like ICICI Bank, HDFC Bank, SBI, UTI

Bank etc. The ICICI has launched ATM Services to its customers in all the Metropolitan Cities in

India. By the end of 1990 Indian Private Banks and public sector banks have come up with their

own ATM Network in the form of “SWADHAN”. Over the past year upto 44 banks in Mumbai,

Vashi and Thane, have became a part of “SWADHAN” a system of shared payments networks,

introduced by the Indian Bank Association (IBA).

4) E-Cheaques: The e-cheaques consists five primary facts. They are the consumers, the

merchant, consumer’s bank the merchant’s bank and the e-mint and the clearing process. This

cheaquring system uses the network services to issue and process payment that emulates real

world chaquing. The payer issues a digital cheaques to the payee ant the entire transactions are

done through internet. Electronic version of cheaques are issued, received and processed. A

typical electronic cheque transaction takes place in the following manner:

The customer accesses the merchant server and the merchant server presents its goods

to the customer.

The consumer selects the goods and purchases them by sending an e-cheque to the

merchant.

The merchant validates the e-cheque with its bank for payment authorization.

The merchant electronically forwards the e-cheque to its bank.

The merchant’s bank forwards the e-cheque to the clearing house for cashing.

36

The clearing house jointly works with the consumer’s bank clears the cheque and trans-

fers the money to the merchant’s banks.

The merchant’s bank updates the merchant’s account.

The consumer’s bank updates the consumer’s account with the withdrawal information.

The e-chequing is a great boon to big corporate as well as small retailers. Most major

banks accept e-cheques. Thus this system offers secure means of collecting payments, trans-

ferring value and managing cash flows.

5) Electronic Funds Transfer (EFT): Many modern banks have computerized their

cheque handling process with computer networks and other electronic equipments. These

banks are dispensing with the use of paper cheques. The system called electronic fund transfer

(EFT) automatically transfers money from one account to another. This system facilitates

speedier transfer of funds electronically from any branch to any other branch. In this system the

sender and the receiver of funds may be located in different cities and may even bank with dif -

ferent banks. Funds transfer within the same city is also permitted. The scheme has been in op-

eration since February 7, 1996, in India.

The other important type of facility in the EFT system is automated clearing houses.

These are the computer centers that handle the bills meant for deposits and the bills meant for

payment. In big companies pay is not disbursed by issued cheques or issuing cash. The pay-

ment office directs the computer to credit an employee’s account with the person’s pay.

6) Telebanking: Telebanking refers to banking on phone services..a customer can

access information about his/her account through a telephone call and by giving the coded Per-

sonal Identification Number (PIN) to the bank. Telebanking is extensively user friendly and ef-

fective in nature.

To get a particular work done through the bank, the users may leave his instructions in

the form of message with bank.

Facility to stop payment on request. One can easily know about the cheque status.

Information on the current interest rates.

37

Information with regard to foreign exchange rates.

Request for a DD or pay order.

D-Mat Account related services.

And other similar services.

7) Mobile Banking: A new revolution in the realm of e-banking is the emergence of

mobile banking. On-line banking is now moving to the mobile world, giving everybody with a mo-

bile phone access to real-time banking services, regardless of their location. But there is much

more to mobile banking from just on-lie banking. It provides a new way to pick up information

and interact with the banks to carry out the relevant banking business. The potential of mobile

banking is limitless and is expected to be a big success. Booking and paying for travel and even

tickets is also expected to be a growth area.

According to this system, customer can access account details on mobile using

the Short Messaging System (SMS) technology6 where select data is pushed to the mobile de-

vice. The wireless application protocol (WAP) technology, which will allow user to surf the net on

their mobiles to access anything and everything. This is a very flexible way of transacting bank-

ing business.

Already ICICI and HDFC banks have tied up cellular service provides such as Airtel, Or-

ange, Sky Cell, etc. in Delhi and Mumbai to offer these mobile banking services to their cus-

tomers.

8) Internet Banking: Internet banking involves use of internet for delivery of banking

products and services. With internet banking is now no longer confirmed to the branches where

one has to approach the branch in person, to withdraw cash or deposits a cheque or request a

statement of accounts. In internet banking, any inquiry or transaction is processed online with-

out any reference to the branch (anywhere banking) at any time.

The Internet Banking now is more of a normal rather than an exception due to the fact

that it is the cheapest way of providing banking services. As indicated by McKinsey Quarterly re-

search, presently traditional banking costs the banks, more than a dollar per person, ATM bank-

38

ing costs 27 cents and internet banking costs below 4 cents approximately. ICICI bank was the

first one to offer Internet Banking in India.

Benefits of Internet Banking:

Reduce the transaction costs of offering several banking services and diminishes the

need for longer numbers of expensive brick and mortar branches and staff.

Increase convenience for customers, since they can conduct many banking transaction

24 hours a day.

Increase customer loyalty.

Improve customer access.

Attract new customers.

Easy online application for all accounts, including personal loans and mortgages

Financial Transaction on the Internet:

Electronic Cash: Companies are developing electronic replicas of all existing payment system:

cash, cheque, credit cards and coins.

Automatic Payments: Utility companies, loans payments, and other businesses use on auto-

matic payment system with bills paid through direct withdrawal from a bank account.

Direct Deposits: Earnings (or Government payments) automatically deposited into bank ac-

counts, saving time, effort and money.

Stored Value Cards: Prepaid cards for telephone service, transit fares, highway tolls, laundry

service, library fees and school lunches.

Point of Sale transactions: Acceptance of ATM/Cheque at retail stores and restaurants for

payment of goods and services. This system has made functioning of the stock Market very

smooth and efficient.

39

Cyber Banking: It refers to banking through online services. Banks with web site “Cyber”

branches allowed customers to check balances, pay bills, transfer funds, and apply for loans on

the Internet.

9) Demat: Demat is short for de-materialization of shares. In short, Demat is a process

where at the customer’s request the physical stock is converted into electronic entries in the de-

pository system.

In January 1998 SEBI (Securities and Exchange Board of India) initiated DEMAT AC-

COUNTANCY System to regulate and to improve stock investing. As on date, to trade on

shares it has become compulsory to have a share Demat account and all trades take place

through Demat.

How to Operate DEMAT ACCOUNT?

One needs to open a Demat Account with any of the branches of the bank. After open-

ing an account with any bank, by filling the Demat request form one can handover the securi-

ties. The rest will be taken care by the bank and the customer will receive credit of shares as

soon as it is confirmed by the Company/Register and Transfer Agent. There is no physical

movement of share certification any more. Any buying or selling of shares is done via electronic

transfers.

1) If the investor wants to sell his shares, he has to place an order with his broker and give

a “Delivery Instruction” to his DP (Depository Participant). The DP will debit hi s account

with the number of shares sold by him.

2) If one wants to buy shares, he has to inform his broker about his Depository Account

Number so that the shares bought by him are credited in to his account.

3) Payment for the electronic shares bought or sold is to be made in the same way as in

the case of physical securities.

BANKING SERVICES

40

Banking covers so many services that it is difficult to define it. However, these

basic services have always been recognized as the hallmark of the genuine banker. These

are…

The receipt of the customer’s deposits

The collection of his cheques drawn on other banks

The payment of the customer’s cheques drawn on himself

There are other various types of banking services like:

1) Advances – Overdraft, Cash Credit, etc.

2) Deposits – Saving Account, Current Account, etc.

3) Financial Services – Bill discounting etc.

4) Foreign Services – Providing foreign currency, travelers cheques, etc.

5) Money Transmission – Funds transfer etc.

6) Savings – Fixed deposits, etc.

7) Services of place or time – ATM Services.

8) Status – Debit Cards, Credit Cards, etc.

Customer Services in Commercial Banks:

Customer service is the service provided in support of a bank’s core products.

Customer service often includes answering questions; handling complaints. Customer service

can occur on site (as when an onstage employee helps a customer or answers a question) or it

can occur over the phone or the Internet. Quality customer service is essential to building cor-

dial customer relationship.

41

Banking being a service industry, a lot depends on efficient and prompt customer

service. Customer service is the most important duty of the banking operations. Prompt and effi-

cient service with smile will develop good public relations reduce complaints and increase busi-

ness.

Why is Customer Service Important?

Changing customer expectations: Today the customer is more demanding and more

sophisticated than he or she was thirty years ago.

The increased importance of customer service: With changing customer expecta-

tions, competitors are seeing customer service as a competitive weapon with which they

differentiate their products and services.

The need for a relationship strategy: To ensure that a customer service strategy that

will create a value preposition for customers should be formulated implemented and con-

trolled. It is necessary to give it a central role and not one that is subsumed in the vari-

ous elements of the marketing mix.

The customer is the king pim in growth organizations like commercial banks.

Only those institutions which work according to his dictates will flourish. Quality, Consistency

and Durability at low price are the final expectations of a customer. Quality will have to be un-

ambiguous, of world class quality. Quality cannot be of minimum acceptable standards. Cus-

tomer responsiveness must be quick and also competent. Speed, performance and cost will be

the new values “mantra” for success.

The ten key areas of customer’s services to be attended timely and regularly are:

i. Submission of statement of A/Cs to customers

ii. Updating of savings pass books.

iii. Teller system efficiency.

iv. Cleanliness and Upkeep of premises.

v. Intermediate Credit for institution cheques/land bills.

42

vi. Advance intimation to customers for rewards of Term Deposits Receipts on maturity.

vii. Advance for Debit/credit to accounts.

viii. Punctuality of staff.

CHAPTER 2

43

INTRODUCTION OF ICICI BANK

Type Private, BSE & NSE, NYSE

Founded 1955 (as Industrial credit and

Investment corporation of India)

Headquarters

ICICI Bank Ltd.,

ICICI Bank Towers,

Bandra Kurla

Mumbai, India

Key peopleN Vaghul, K.V. Kamath, Chanda

Kochhar, V Vaidyanathan, Madhabi

Puri

44

IndustryBanking

Insurance

Capital Markets and allied industries

Products Loans, Credit Cards, Savings,

Investment vehicles, Insurance etc.

OVERVIEW

ICICI Bank (formerly Industrial Credit and Investment Corporation of India). ICICI Limited

was established in 1955 by the World Bank, the Government of India and the Indian Industry,

for the promotion of industrial development in India by giving project and corporate finance to

the industries in India.

ICICI Bank has grown from a development bank to a financial conglomerate and has become

one of the largest public financial institutions in India. ICICI Bank has financed all the major

sectors of the economy, covering 6,848 companies and 16,851 projects.

ICICI Bank Fact Files:

Network: 580 branches

ATMs: Over 2000

Abroad Subsidiaries: United Kingdom and Canada

Abroad branches: Singapore and Bahrain

Representative offices: United States, China, United Arab Emirates, and Bangladesh and

South Africa.

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. ICICI Bank set up its international banking group in fiscal 2002 to cater to

45

the cross border needs of clients and leverage on its domestic banking strengths to offer

products internationally.

ICICI Bank (BSE: ICICI) (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.

Bank has total assets of about USD 100 billion (at the end of March 2008), a network of over

1,491 branches, 22 regional offices and 49 regional processing centers, about 4,485 ATMs (at

the end of September 2008), and 24 million customers (at the end of 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 specialized subsidiaries and affiliates in the areas of

investment banking, life and non-life insurance, venture capital and asset management. (These

data are dynamic.) ICICI Bank is also the largest issuer of credit cards in India. ICICI Bank has

got its equity shares listed on the 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. ICICI Bank now has wholly-owned subsidiaries, branches and representa-

tives offices in 18 countries, including an offshore unit in Mumbai. This includes wholly owned

subsidiaries in Canada, Russia and the UK (the subsidiary through which the hisave savings

brand is operated), offshore banking units in Bahrain and Singapore, an advisory branch in

Dubai, branches in Belgium, Hong Kong and Sri Lanka, and representative offices in

Bangladesh, China, Malaysia, Indonesia, South Africa, Thailand, the United Arab Emirates and

USA. Overseas, the Bank is targeting the NRI (Non-Resident Indian) population in particular.

46

ICICI Bank currently has subsidiaries in the United Kingdom, Russia and Canada, branches

in Singapore, Bahrain, Hong Kong, Sri Lanka and Dubai International Finance Center and

representative offices in the United States, United Arab Emirates, China, South Africa and

Bangladesh. Our UK subsidiary has established a branch in Belgium. ICICI Bank is the most

valuable bank in India in terms of market capitalization.

ICICI Bank's equity shares are listed in India on the Bombay Stock Exchange and the

National Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are

listed on the New York Stock Exchange (NYSE).

ICICI Bank has formulated a Code of Business Conduct and Ethics for its Directors and

employees. At June 5, 2006, ICICI Bank, with free float market capitalization of about Rs.

480.00 billion (US$ 10.8 billion) ranked third amongst all the companies listed on the Indian

stock exchanges.

ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial Institution,

and was its wholly owned subsidiary. ICICI's shareholding in ICICI Bank was reduced to 46%

through a public offering of shares in India in fiscal 1998, an equity offering in the form of ADRs

listed on the NYSE in fiscal 2000, ICICI Bank's acquisition of Bank of Madura Limited in an all-

stock amalgamation in fiscal 2001, and secondary market sales by ICICI to institutional

investors in fiscal 2001 and fiscal 2002. ICICI was formed in 1955 at the initiative of The World

Bank, the Government of India and representatives of Indian industry.

The principal objective was to create a development financial institution for Providing

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

transformed its business from a development financial institution offering only project finance to

a diversified financial service group offering a wide variety of products and services, both

directly and through a number of subsidiaries and affiliates like ICICI Bank. In 1999, ICICI

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

to be listed on the NYSE.

In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger of

ICICI and two of its wholly owned retail finance subsidiaries, ICICI Personal Financial Services

Limited and ICICI Capital Services Limited, with ICICI Bank. The merger was approved by

shareholders of ICICI and ICICI Bank in January 2002, by the High Court of Gujarat at

Ahmadabad in March 2002, and by the High Court of Judicature at Mumbai and the Reserve

47

Bank of India in April 2002. Consequent to the merger, the ICICI group's financing and banking

Operations, both wholesale and retail, have been integrated in a single entity.

BUSINESS OBJECTIVES

Vision

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

Mission

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

be the banker of first choice for our customers by delivering high quality, world-class

service.

Expand the frontiers of our business globally.

Play a proactive role in the full realisation of India’s potential.

maintain a healthy financial profile and diversify our earnings across businesses and

geographies.

Maintain high standards of governance and ethics.

Contribute positively to the various countries and markets in which we operate.

Create value for our stakeholders.

Product and Services

Service and banking of ICICI bank categorized in to personal banking, business banking and

NRI banking services.

Personal banking- Deposit in form of saving, recurring, term deposit, senior citizen deposit and

children depository account are there for individual customer can also avail of their housing,

48

automobile, farm equipment, business or personal loan scheme. Personal client can also invest

in mutual funds and participate in stock trading through ICICI bank.

Business banking – Business banking services of ICICI Bank are exhaustive. Project financ-

ing, deal assessment, and land evaluation are investment banking services offered to corporate

clients. Global trade and cash management transaction services facilitate remittances and re-

ceipts across important cities. Capital market and custodial services enable business houses to

participate in equity trading and transfer across major stock markets of world. 

Customer

ICICI bank targets all segment of customer with various types of products and services. I

interacted with a a lot of customers and collect their feedback on the given services of company,

and feedback are positive response from all point of view. Customers are beneficiary from both

sides monetary as well as non monetary. The bank targets to add nearly 500,000 customers

under the new scheme in the next one year and plans to offer auto loans through the new online

channel in the future, ICICI Bank's Executive Director, V Vaidyanathan, said here.

"As of now, nearly 24 per cent of our customer transactions are happening through internet. We

are primarily targeting our urban customers, who constitute nearly 70 per cent of our total cus-

tomer-base," Vaidyanathan said.

Customers, opting for the service can also benefit from the quantum optima facility, wherein if

the balance exceeds Rs 5,000, the money will automatically be transferred to a fixed deposit

scheme, he said. The facility, which also enable customers to transact between an ICICI Bank

account and accounts in other banks, is being offered free of cost, he said ICICI bank,

presently, has above 2 crore customers. The lender opened nearly 470 branches in the last fis-

cal. The lender has also plans to launch 'SMS n Cash' scheme later this week under which

ICICI account holders can transfer funds to those who do not have a bank account. ICICI bank

is strongly committed to protecting the privacy of its customers and has taken all necessary and

reasonable measures to protect the confidentiality of the customer information and its transmis-

49

sion through the world wide web and it shall not be held liable for disclosure of the confidential

information when in accordance with this privacy commitment or in terms of the agreements, if

any, with the customers.

ICICI bank Endeavour’s to safeguard and ensure the security of the information provided by the

customer. ICICI bank uses 128-bit encryption, for the transmission of the information, which is

currently the permitted level of encryption in India. When the information provided by the cus-

tomers is not transmitted through this encryption, the customer's system (if configured accord-

ingly) will display an appropriate message ensuring the best level of secrecy for the customer's

information.

The customer would be required to cooperate with ICICI bank in order to ensure the security of

the information, and it is recommended that the customers necessarily choose their passwords

carefully such that no unauthorized access is made by a third party. To make the password

complex and difficult for others to guess, the customers should use combination of alphabets,

numbers and special characters (like! @, #, $ etc.). The customers should undertake not to dis-

close their password to anyone or keep any written or other record of the password such that a

third party could access it.

ICICI bank undertakes not to disclose the information provided by the customers to any

person, unless such action is necessary to:

Conform to legal requirements or comply with legal process;

Protect and defend ICICI bank's or its affiliates rights, interests or property;

Enforce the terms and conditions of the products or services; or

Act to protect the interests of ICICI bank, its affiliates, or its members, constituents or of

other persons.

Competitor

50

The main competitor of is ICICI bank is SBI because this bank is totally taken by government af-

ter this bank HDFC bank is the main competitor of ICICI bank .There are different types of seg-

ment operation semment, investment and services, demat and NRI services.The competitor

from the operation segment are State Bank of India(SBI), Axis, Housing Development and Fi-

nancial corporation(HDFC) etc.From the investment And service sector HDFC standard life in-

surance corporation, Bharati Axa life insurance ,Reliance Life Insurance Corporation, Max new

work life insurance SBI Life insurance,Life Insurance Corporation of India.In demat section India

bull,Anangram,SBI,HDFC,India Infoline are the main competitor of ICICI bank.In the NRI service

section the Western Union bank is the main competitor of ICICI bank.There are some other

company who also compete with the ICICI bank After the SBI the HDFC bank is the main com-

petitor of ICICI bank.

HDFC Bank Ltd. is a commercial bank of India, incorporated in August 1994, after the Reserve

Bank of India allowed establishing private sector banks. The Bank was promoted by the Hous-

ing Development Finance Corporation, a premier housing finance company (set up in 1977) of

India. HDFC Bank has 1,500 branches and over 2,890 ATMs, in 530 cities in India, and all

branches of the bank are linked on an online real-time basis. As of September 30, 2008 the

bank had total assets of INR 1006.82 billion.

State Bank of India is the largest bank in India. It is also, measured by the number of branch

offices and employees, the second largest bank in the world.[citation needed] The bank traces

its ancestry back through the Imperial Bank of India to the founding in 1806 of the Bank of Cal-

cutta, making it the oldest commercial bank in the Indian Subcontinent. The Government of In-

dia nationalised the Imperial Bank of India in 1955, with the Reserve Bank of India taking a 60%

stake, and renamed it the State Bank of India. In 2008, the Government took over the stake held

by the Reserve Bank of India.SBI provides a range of banking products through its vast network

in India and overseas, including products aimed at NRIs. With an asset base of $126 billion and

its reach, it is a regional banking behemoth. SBI has laid emphasis on reducing the huge man-

power through Golden handshake schemes and computerizing its operations.The State Bank

Group, with over 16000 branches , has the largest branch network in India. It has a market

share among Indian commercial banks of about 20% in deposits and advances, and SBI ac-

counts for almost one-fifth of the nation’s loans.There are some other banks which gives chal-

lenging some how in the banking and service sectorthey are:

Allahabad Bank

51

Andhra Bank

Bank of Baroda

Bank of India

Bank of Maharashtra

Canara Bank

Central Bank of India

Corporation Bank

Dena Bank

IDBI Bank

Indian Bank

Indian Overseas Bank

Oriental Bank of Commerce

Punjab & Sind Bank

Punjab National Bank

Syndicate Bank

UCO Bank

Union Bank of India

United Bank of India

Vijaya Bank

52

Environment

An employer the bank extends a lot of authority along with justified accountability to you. The

working culture is very collaborative in nature. It can be owed to the fact that the bank is highly

segmented with a lot of overlapping and mostly distinct roles and responsibility.ICICI Bank has

established itself as a one stop solution (Universal Bank) for all financial need of individuals and

institutions alike. The credit for the same can be attributed to its vast network, probably the

largest among private sector banks.This makes the life of an employee a lot easier, especially

for those who face the external customers. You do not have to justify your organization, it is only

the product that has to be pitched. As far as employee benefits are concerned, ICICI Bank of -

fers a lot of financial benefits ranging from your family health insurance to your kids school do-

nations. The organization is sensitive to the needs of its employees as this quality is one of the

building blocks (DNA) of the organizational culture.  The organization will be giving you enough

flexibility to innovate and come-up with new ideas. It will also exhibit its in terms of well laid sys-

tems, processes and infrastructure. It will extend a fast track growth for those with extraordinary

talent at the same time offer stability to those who are able to deliver satisfactorily.Overall, I

would say it’s a lifetime experience to work with such a behemoth organization. It might not be

the best paymaster but it definitely will impress you with its capability as the head master (Prin-

cipal) of banking industry.there are huge competition between the eployee to achieve theo goal.

TECHNOLOGY

ICICI use many type of advance technological software like Pinnacle 7.0 and

Pinnacle7.016.Among from this software ICICI bank uses the e-banking, core banking, mobile

banking electronic display sy ICICI Bank was using Teradata for its data warehouse.  However,

due to its proprietary hardware, the cost of procurement, upgrades and administration was soar-

ing. The closed box architecture of Teradata imposed restrictions on scalability. Secondly,

querying and loading could not happen simultaneously. Queries could only be run during busi-

ness hours because the loading of data had to take place during off-business hours. This meant

that the refresh rate of EDW was delayed, so queries may not reflect the most current data.

ICICI Bank was also dependent on Teradata for support and other activities: The bank was

completely tied down to that solution.

53

These issues compelled ICICI Bank to look for more efficient and flexible solutions. The solution

would have to address not only current issues, but accommodate future growth expectations

and business requirements. ICICI Bank evaluated numerous data warehousing solutions in the

pursuit of solving its issues, and developed a shortlist of alternatives for its migration proof-of-

concept: Sybase, SAS and Netezza. The primary criteria for evaluation was the price-to-perfor-

mance ratio where Sybase IQ emerged the clear winner.  During this rigorous testing, Sybase

IQ delivered faster results on independent hardware and operating systems with minimum infra-

structure. Commending the improvements achieved, Amit Sethi, Joint General Manager, ICICI

bank says, "What impressed us wasthat even with overall lower costs, we could achieve signifi-

cantly better query performanceafter implementing the Sybase enterprise warehouse solution."

ICICI Infotech today launched an enterprise resource planning (ERP) solution for the small and

medium enterprises.

The ERP package - Orion Advantage - comes bundled with an HP dual processor Xeon server,

Oracle 9i database, Windows 2003 server and costs about Rs 9.90 lakh and has a 15-user li-

cense.

An ERP package helps a manufacturer or any other business implementing it to manage all the

important parts in the company such as product planning, parts purchasing, maintaining inven-

tory and interacting with suppliers and customers.

ICICI InfoTech officials told a press conference here today that Orion Advantage offered a set of

business practice solutions for industry segments such as engineering, auto ancillary, pharma-

ceuticals, chemicals and IT distribution. Besides the cost advantage, the ERP package also

came pre-configured. ICICI InfoTech had mapped the processes specific to each industry seg-

ment into the package.

Mr. R.K. Kanthi, Deputy General Manager, ICICI InfoTech, said there was no ERP package for

the SMEs that bundled the server, database and operating system right now. That was the ad-

vantage ICICI InfoTech offered to SMEs as Orion Advantage came bundled and pre-configured.

Besides the high cost of generic ERP packages, their implementation time as far as SMEs were

concerned was also long. Orion Advantage could be installed in 45 days.

54

ICICI InfoTech had signed up six customers so far for the package and hoped to garner a 15

per cent market share of the SME segment, whose number in the country was estimated at 2.30

lakh.

The Chennai centers were involved in research and development of Orion ERP solutions and

Premia, an insurance package.

ERP Systems Integration

Pinnacle Software Solutions has the expertise and experience to assist you with your enterprise

systems integration. From developing your strategy, through implementation and support, we

bring the right combination of resources, management skill sets, and technical know-how. We

will help you successfully integrate your Enterprise Resource Planning (ERP) systems into

your overall business and technology infrastructure.

Whether you are planning an upgrade of an existing ERP system, or a complete replacement of

a legacy application and platform, we can help you improve your financial, human resources,

electronic mail, and other business systems. We work with the leading ERP systems, including

the latest versions of the Oracle and PeopleSoft applications:

 General Ledger  Project Costing

Accounts Payable  Human Resources

 Accounts Receivable  Payroll

Purchasing  Benefits

Asset Management  Compensation

Our technology management solutions will help you migrate hardware platforms, improve net-

work and database performance, develop or refresh policies and procedures, and develop

sound disaster recovery and backup solutions. Please contact us to learn how Pinnacle Soft-

ware Solutions can help you develop “solutions that fit” your enterprise.

55

KEY SUBSIDIARIES

ICICI Prudential Life Insurance Company

ICICI Prudential life Insurance Company Limited was incorporated on 20th July 2000.The

authorized capital of the company is Rs.2300 million and the paid up capital is Rs.1500 million.

The company is joint venture of ICICI (74%) and UK based company Prudential Plc (26%). The

company was granted certificate of registration for carrying business, by Insurance Regulatory

and Development Authority on 24th November 2000. It commenced commercial operation from

19th December 2000 and becoming a leading private sector life insurance company.

The company recognizes that the driving force for gaining sustainable competitive advantage in

this business is superior customer experience and investment behind the brand. The company

aims to achieve this by striving to provide world class service level trough constant innovation in

product, distribution channels and technology based delivery.

Vision and Mission

Their vision is to make ICICI Prudential Life Insurance Company the dominant new insurer in

the life insurance industry. This they hope to achieve through their commitment to excellence,

focus on service, speed and innovation, and leveraging our technological expertise.

56

The success of the organisation will be founded on its strong focus on values and clarity of pur-

pose. These include:

 Understanding the needs of customers and offering them superior products and service

 Building long lasting relationships with their partners

 Providing an enabling environment to foster growth and learning for their employees

And above all building transparency in all our dealings. They believe that they can play a signifi-

cant role in redefining and reshaping the sector. Given the quality of their parentage and the

commitment of their team, they feel that there will be no limits to their growth.

Board of Directors

The ICICI Prudential Life Insurance Company Limited Board comprises reputed people from the

finance industry both from India and abroad. 

Shri K.V. Kamath, Chairman 

Management Team

Ms. Shikha Sharma, Managing Director

Mr. Kevin Wright, Executive Vice President - Sales & Distribution

Ms. Madhavi Soman, Chief - Strategic Initiatives

Mr. V. Rajagopalan, Appointed Actuary 

Mr. Sandeep Batra, Chief Financial Officer & Company Secretary

Mr. Saugata Gupta, Chief - Marketing & Service

Mr. Shubhro J. Mitra, Chief - Human Resources 

Corporate Office:

ICCI Prulife Towers,

1089, Appasahab Marathe Marg,

Prabhadevi,

Mumbai 400 025.

Telephone Number: 022-462 1600

Website : www.iciciprulife.com

57

ICICI Prudential Life Insurance Company (ICICI Life) maintained its market leadership in the pri-

vate sector with an overall market share of 9.3% based on retail new business weighted re-

ceived premium in fiscal 2010. ICICI Life’s total premium increased by 7.7% to Rs. 165.32 billion

in fiscal 2010 with renewal premiums increasing by 19.4%. ICICI Life’s new business annualised

premium equivalent was Rs. 53.45 billion in fiscal 2010. ICICI Life achieved its first year of ac-

counting profits since inception in fiscal 2010 with a profit after tax of Rs. 2.58 billion.

The expense ratio has decreased from 11.8% in fiscal 2009 to 9.1% in fiscal 2010. Assets held

at March 31, 2010 were Rs. 573.19 billion compared to Rs. 327.88 billion at March 31, 2009.

ICICI Life’s unaudited New Business Profit in fiscal 2010 was Rs. 10.15 billion. Life insurance

companies make accounting losses in initial years due to business set-up and customer acquisi-

tion costs in the initial years and reserving for actuarial liability. Further, in India, amortization of

acquisition costs is not permitted. These factors resulted in statutory losses for ICICI Life since

the company’s inception till fiscal 2009. If properly priced, life insurance policies are profitable

over the life of the policy, but at the time of sale, there is a loss on account of non-amortized ex-

penses and commissions, generally termed as new business strain that emerges out of new

business written during the year. New Business Profit is an alternate measure of the underlying

business profitability

(as opposed to the statutory profit or loss) and is the present value of the profits of the new busi -

ness written during the year. It is based on standard economic and non-economic assumptions

including risk discount rates, investment returns, mortality, expenses and persistency assump-

tions.

ICICI Lombard General Insurance Company

ICICI Lombard General Insurance Company Limited is a 74:26 joint venture between ICICI

Bank Limited and Canada based Fairfax Financial Holdings Limited. ICICI Bank is India's sec-

ond largest bank, while Fairfax Financial Holdings is a diversified financial corporate engaged in

general insurance, reinsurance, insurance claims management and Investment management .

Lombard Canada Ltd, a group company of Fairfax Financial Holdings Limited, is one of

Canada's oldest property and casualty insurers. ICICI Lombard General Insurance Company re-

ceived regulatory approvals to commence general insurance business in August 2000.

Board Members

58

Mr K V Kamath, Chairman

Mr R Athappan, Director

Mr B V Bhargava, Director

Mr Dileep Choksi, Director

Mr James F Dowd, Director

Ms Lalita D Gupte, Director

Ms Kalpana Morparia, Director

Mr S Mukherji, Director

Mr Chandran Ratnaswami, Director

Mr H N Sinor, Director

Mr Sandeep Bakhshi, Managing Director & CEO

Retail Segment of ICICI Lombard General Insurance :

ICICI Lombard's Retail Segment consists of personal insurance products - Health, Home, Motor

and Travel insurances.

Health Insurance

ICICI Lombard is known to be a pioneer in introducing innovative concepts in the Indian health

Insurance sector. Be it the floater concept, the critical illness cover or the tax gain policy, all

these were first introduced by ICICI Lombard. It was also one of the first general insurance

companies in India to have a robust online system in place for buying and renewing policies.

The various plans offered by ICICI Lombard include Family Floater Plan - where one policy

covers the entire family, Health Advantage Plus - where they cover OPD and dental expenses,

also help save maximum tax under section 80D and Critical Illness plan - a special policy

covering a list of critical illnesses. They also have a basic Personal Accident Plan which covers

against accidents. ICICI Lombard health plans also provide coverage against terrorism.

Home Insurance

Home Insurance is actually one of the most neglected areas in the general insurance category.

Simply, because people in general, especially in India, do not give much importance to it.

However, in the recent years, due to the increase in awareness, and the great extent of damage

caused to property due to natural calamities and terrorism, it has been gaining importance.

The Home Insurance Policy offered by ICICI Lombard covers both the structure and the

59

contents of the house. You can opt for either of the covers or both. Unlike other policies, it also

covers damage due to terrorist activities, loss of cash, public liability, temporary resettlement

and others.

Motor Insurance

As Motor Insurance is mandatory in India and is governed by the Motor Tariff Act, the policies

offered by various companies are more or less the same. There is not much room for innovation

in this category. ICICI Lombard too offers Car Insurance and Two Wheeler Insurance. They are

known to offer one of the best rates in the market. As the entire buying process is online and is

instant, without any submission of documents or other formalities, people generally opt it for

convenience.

Travel Insurance

Travel insurance is one of the most prominent sector of general insurance, especially overseas

travel insurance and student medical insurance. ICICI Lombard offers various options in both

the categories. The Overseas Travel Plans and Student Medical Plans offered cover medical

and non-medical expenses, including compensation for flights hijacked and pre existing

diseases in case of emergency. They charge on a per day basis if the travel is more than 7

days. ICICI Lombard has tied up with United Health Group to facilitate access to all its clinics

while in U.S.

The Student Medical Plans are accepted in almost universities worldwide. They also have a

section in their website, University Search, where one can find specific plans for specific

universities.

All the above retail policies can be bought online, without any documentation through their

website www.icicilombard.com .One can not only buy, but also manage and renew their

insurance policies online.

NRI Services

ICICI Lombard has developed insurance policies for Non-resident Indians that can be bought,

renewed and tracked online.

Parents' Health Insurance covers hospitalization and medical expenses incurred by parents of

the policyholder in India. For parents' travelling outside India, ICICI Lombard offers a Parents'

Overseas Travel Insurance policy.

60

An NRI can insure his children/ dependents travelling abroad to study, under the Student

Medical Insurance plan. Likewise, the Home Insurance and Car Insurance schemes enables

an NRI to secure his assets in India.

Channels

Channel is the term used for the various approaches a company uses to tap its customers.

ICICI Lombard uses a multi channel approach to ensure the sales, service and other allied

activities are carried out in the most effective manner.

Retail

The Retail channel consists of sales executives, sales officers, brokers and agents. They are

the one who are in direct contact with the customers and bring the innovative insurance

solutions to their doorsteps.

Online

ICICI Lombard has developed a web-based system to meet all the pre and post-policy

transaction. One can get quotes, buy, renew and track their policies onlin e through the website

[www.icicilombard.com]. With the do-it-yourself architecture, the online channel is fast,

convenient, easy to understand and operate.

ICICI Lombard General Insurance Company (ICICI General) maintained its leadership in the pri-

vate sector with an overall market share of 9.5% in fiscal 2010. ICICI General’s gross written

premium during fiscal 2010 was Rs. 34.32 billion. The industry continued to witness a slowdown

in growth on account of de-tariffication of the general insurance industry whereby insurance pre-

miums were freed from price controls, resulting in a significant reduction in premium rates. The

industry also continued to witness the impact of motor third party insurance pool for third party

insurance of commercial vehicles. ICICI General achieved a profit after tax of Rs. 1.44 billion in

fiscal 2010 compared to Rs. 0.24 billion in fiscal 2009.

ICICI Prudential Asset Management Company

ICICI Prudential Asset Management Company (ICICI AMC) was the third largest asset manage-

ment company in India. The average assets under management of ICICI AMC increased from

61

Rs. 514.56 billion for March 2009 to Rs. 810.18 billion for March 2010. ICICI Prudential AMC

achieved a profit after tax of Rs. 1.28 billion in fiscal 2010 compared to Rs. 7.1 million in fiscal

2009.

ICICI Venture Funds Management Company Limited

ICICI Venture Funds Management Company Limited (ICICI Venture) maintained its leadership

position in private equity in India, with funds under management of about Rs. 114.40 billion at

year-end fiscal 2010. ICICI Venture achieved a profit after tax of Rs. 515.2 million in fiscal 2010

compared to Rs. 1.48 billion in fiscal 2009. The profit for fiscal 2009 includes gains from the sale

of stake in TSI Venture.

ICICI Securities Limited and ICICI Securities Primary Dealership Limited

ICICI Securities achieved a profit after tax of Rs. 1.23 billion in fiscal 2010 compared to Rs. 0.04

billion in fiscal2009. ICICI Securities Primary Dealership achieved a profit after tax of Rs. 849.8

million in fiscal 2010 despite the significant increase in yields on government securities, as com-

pared to a profit after tax of Rs. 2.72 billion in fiscal 2009

.

ICICI Bank UK PLC

ICICI Bank UK PLC (ICICI Bank UK) offers retail and corporate and investment banking ser-

vices in the UK and Europe. During fiscal 2010, ICICI Bank UK continued to focus on rebalanc-

ing its deposit base towards retail term deposits and the proportion of retail term deposits in total

deposits increased from 58% at March 31, 2009 to 66% at March 31, 2010. ICICI Bank UK’s

profit after tax for fiscal 2010 was USD 37.0 million compared to US$ 6.8 million in fiscal 2009.

ICICI Bank UK’s capital position continued to be strong with a capital adequacy ratio of 17.3% at

March 31, 2010.

ICICI Bank Canada

ICICI Bank Canada is a full-service bank which offers a wide range of financial solutions to cater

to personal, commercial, corporate, investment, treasury and trade requirements. ICICI Bank

62

Canada’s profit after tax for fiscal 2010 was CAD 35.4 million compared to CAD 33.9 million in

fiscal 2009. At March 31, 2010, ICICI Bank Canada had total advances of CAD 3.89 billion and

total assets of CAD 5.68 billion. ICICI Bank Canada’s capital position continued to be strong

with a capital adequacy ratio of 23.4% at March 31, 2010.

ICICI Bank Product & Customer Segment:

PERSONAL BANKING

Loan Product Deposit Product Investment & Insurance

63

Auto Loan Loan Against Se-

curity Loan Against Prop-

erty Personal loan Credit card 2-wheeler loan Commercial vehi-

cles finance Home loans Retail business

banking Tractor loan Working Capital Fi-

nance Construction

Equipment Finance Health Care Fi-

nance Education Loan Gold Loan

Saving a/c Current a/c Fixed deposit Demat a/c Safe Deposit Lock-

ers

Mutual Fund Bonds Knowledge Centre Insurance General and Health In-

surance Equity and Derivatives Mudra Gold Bar

Cards Payment Services Access To Bank

Credit Card Debit Card Prepaid Card

-------------------------------- Forex Services--------------------------------

Product & Services Trade Services Forex service

Branch Locater RBI Guidelines

NetSafe Merchant Prepaid Refill Bill pay Visa Bill pay Insta Pay Direct Pay Visa Money Trans-

fer e–Monies Elec-

tronic Funds Trans-fer

Online Payment of Direct Tax

Net Banking One View Insta Alert

Mobile Banking ATM Phone Banking Email Statements Branch Network

WHOLESALE BANKING

64

Corporate Small and Medium Enterprises

Financial Institutions and Trusts

Funded Ser-vices

Non Funded Services

Value Added Services

Internet Banking

Funded Services Non Funded Services Specialized Services Value added services Internet Banking

BANKS Clearing Sub-Membership RTGS – sub-membership Fund Transfer ATM Tie-ups Corporate Salary a/c Tax CollectionFinancial Institutions

Mutual Funds

Stock Brokers

Insurance Companies

Commodities Business

Trusts

NRI SERVICES

Accounts & Deposits Remittances

Rupee Saving a/c Rupee Current a/c Rupee Fixed Deposits Foreign Currency Deposits Accounts for Returning Indians

North America UK Europe South East Asia Middle East Africa Others

Quick remit IndiaLink Cheque LockBox Telegraphic/ Wire Transfer

Funds Transfer Cheques/DDs/TCs

Investment & Insurances Loans

Mutual Funds Insurance Private Banking Portfolio Investment Scheme

Home Loans Loans Against Securities Loans Against Deposits Gold Credit Card

65

Payment Services Access To Bank

PRODUCTS & SERVICES OFFERED BY ICICI BANK

ICICI Bank offers wide variety of Deposit Products to suit your requirements. Coupled with

convenience of networked branches/ ATMs and facility of E-channels like Internet and Mobile

Banking, ICICI Bank brings banking at your doorstep. Select any of its deposit products and

provide your details online and their representative will contact you for Account Opening.

SAVING ACCOUNTS

ICICI Bank offers customers a power packed Savings Account with a host of

convenient features and banking channels to transact through. So now

customers can bank at their convenience, without the stress of waiting in

queues.

Special Savings Account:

The Special Savings Account has been designed keeping in mind the specific needs of

organizations such as Trusts, Associations, Societies, Councils, Clubs etc. It provides

organizations solutions with added value and is ideal for tax exempted entities.

“LIFE PLUS”Senior citizens savings account

LIFE PLUS,a special savings account for senior citizens

from ICICI Bank is packed with a host of benefits, designed

keeping your unique financial requirements in mind.

Special senior citizens desk to cater to all banking transactions, so that you don’t

wait in queues.

Higher interest rate on FD/RD: avail the combined benefits of safety, flexibility and

attractive returns with ICICI Bank Fixed Deposit and Recurring Deposit.

Free special senior citizen LIFE PLUS debit card.

Money multiplies facility.

66

Extended banking hours allows you to visit our branches, as per your convenience.

Anywhere banking access to various services, ICICI Bank has to offer – anytime,

anywhere and from any place, including branches, ATMs and phone banking.

Nomination facility available.

Quarterly average balance (QAB) requirement of Rs.5000.

Quarterly physical statements are delivered to your doorstep to absolutely free of

cost.

Passbook on request.

Young Stars Account:

Young Stars is a banking service for children, aged 1day -18

years, brought to you by ICICI Bank to help the parents meet

the present and future aspirations that they hold for their child.

It offers various savings and investment options to the parent

along with teaching the child to manage his/her personal finance in a more responsible and

independent manner. Young Stars will guide your child through the world of banking -through

checking the account balance, fun zones and special pages on the internet. It makes banking a

pleasure and of course teaches your child to manage their personal finances. With the pocket

money that you transfer to your child's account, you can even shop with him / her at Young

Stars very own shopping page. You can even open a recurring deposit in your child's name.

Once you are done with your 'banking', you can access your child's account with all the fun links

to special zones designed to suit your child's area of interests and also impart knowledge on the

current events of the world.

Advantage woman savings account

The ICICI Bank Advantage Woman Account enables today’s inde-

pendent women to enjoy hassle-free banking services. Besides

the core ICICI Bank advantage, the Advantage Woman Savings

Account is packed with special benefits for our women customers.

67

Enjoy your present and plan for the future with ICICI Bank’s Advantage Woman Savings Ac-

count. Advantage Woman offers a specially designed woman's debit card which helps you shop

and save simultaneously, manages your household expenditures and comes with a bag full of

offers attached to it.

Special International Woman’s Debit Card with lots of offers.

Free unlimited access to any bank’s ATM.

Bill Pay facility & Multi Channel Access.

Payable-at-par cheque book.

Nomination facility available.

Zero balance facility with an RD of Rs.2000 or Quarterly Average Balance (QAB) re-

quirement of Rs. 10,000.

Current Accounts:

Every business requires efficient banking facilities to support its business activities. ICICI Bank

offers premium quality service, unfolding a wide array of class products. With technology

leadership and service the bank is able to meet some of the most challenging financial needs of

clients. A Current Account is one that is required by Businessman, Joint stock

companies, Inst i tut ions, Public authori t ies, publ ic corporat ions etc. Any

business that has numerous banking transactions need a current account as i t

Allows running account supporting unlimited withdrawals and deposits.

Is meant for convenience and not to save money.

Roaming Current Account

Only Roaming Current Account from ICICI Bank travels the distance with customers business.

With advanced technological features such as MCC and LCC, banking needs are well taken

care of; customers can access their accounts at over 500 networked branches across the

country.

So while customers take care of their business, ICICI Bank’s Roaming Current Account

simplifies banking for them.

Salary Accounts

68

Salary Account is a feature rich corporate payroll account with benefits for both corporates and

its employees.

The process of drawing cheques for salaries is replaced by

sending a single ASCII f i le to the bank and the amount is di -

rect ly credited into the employee’s salary account

Cuts down payrol l processing workload

Salary Account can be opened with minimum 10 employees

Instant credit of salaries

ICICI Bank Salary Account is a benefit-rich payroll account for Employers and Employees. As

an organization, you can opt for our Salary Accounts to enable easy disbursements of salaries

and enjoy numerous other benefits too. With ICICI Bank Salary Accounts your employees will

enjoy the convenience of :

• Having the largest network of ATMs at their command,

• Free 24 hour Phone Banking,

• Free Internet Banking.

All that the organization would require to do is to send ICICI Bank an advice (in form of a

cheque/debit instruction etc) for the total salary amount along with the salary details of the des-

ignated employees in a soft and hard copy format and we will credit the respective employees'

accounts as per your statement of advice. ICICI Bank Salary Accounts benefits you in more

than one ways:-

• Reduces paperwork.

• Saves remittance costs.

Employees receive instant credit of salaries. More convenient than ECS. Besides all of the

above, employees automatically become ICICI Bank account holders with special benefits and

privileges of 8-8 banking, Investment advisory and much more...

Fixed deposits:

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Fixed deposits are options which help you grow your money

thus creating wealth in a safer and secure way.

ICICI provides its customers with various kinds of Fixed deposit

facilities that are flexible and cater to customers who have

different needs and wants in their fixed deposits.

ICICI provides a Fixed Deposit that allows customers to deposit their money for just as long as

you wish.

Wide range of tenures – 15 days to 10 years.

Choice of investment plan – traditional and cumulative deposits.

Partial withdrawal allowed.

Loan facility available – you can avail loan up to 90% of principal and accrued interest.

Auto renewal facility – you can choose this option so that the deposit can be renewed on

maturity.

Interest compounded quarterly.

Additional interest rate of 0.5% for senior citizens.

Recurring Deposits:

ICICI Bank Recurring Deposits are an ideal way to invest

small amounts of money every month and end up with a large

kitty on maturity. High recurring billing and recurring pay-

ments can be a drain on your finances and hence large invest-

ments may seem a plan away.

Recurring deposits aims to encourage savings without putting any stress on customer’s fi-

nances by making them to put a lump sum amount in fixed deposit in one go. The recurring de-

posit also attracts high rate of return that are identical to the fixed deposit rates and most impor-

tantly no TDS is applicable in it .the minimum balance of deposit is of Rs.500 and thereafter in

multiples of Rs.100 the minimum period is 6 months and thereafter in multiples of 3 months,

nomination facility is also available.

Security Deposits:

70

A few Corporates stipulate to their new employees to provide Security Deposit to reduce attri-

tion. ICICI Bank’s proposal for the employee is to keep the Se-

curity Deposit in the form of a Fixed Deposit (FD) with the Bank.

The employee cannot withdraw such FDs without the consent of

the company and the company has the right to withdraw the FD

in the event of employee leaving the organization before a cer-

tain stipulated period.

ICICI Bank Tax-Saver Fixed Deposit

ICICI Bank’s Tax-Saver Fixed Deposit enables you to save tax and earn high returns. A dual

benefit option structured to maximize your advantage. ICICI Bank’s Tax Saver FD is the perfect

solution for your investment needs.

EEFC Account

Indian exports have surged over the last decade owing to an unprecedented boom in sectors

like software, biotechnology, gems, Jewellery, textiles etc. As a result of this, the volume of

inward remittances has also increased significantly. To shield the firms engaged in regular

export and import from the exchange rate fluctuations RBI has allowed parking of foreign

currency by exporters in an account designated as Exchange Earners Foreign Currency

Account (EEFC). EEFC accounts are Current Accounts held in foreign currency with authorized

dealers of foreign exchange in the country.

Resident Foreign Currency (Domestic) Account

Do you want to save money while buying foreign currency for travelling abroad? You can buy

traveler’s cheques, foreign currency in cash and foreign currency demand draft for your

expenses overseas. If you are a frequent traveler, you may not want to go through the hassles

of buying foreign currency every time you travel abroad.

The Reserve Bank of India has now made it easier for you to access foreign currency by permit-

ting a foreign currency account (domestic) for resident Indians. In line with RBI guidelines, ICICI

Bank has come up with a scheme that helps you get rid of all your Forex worries. You can park

your foreign currency in ICICI Bank under RFC (D) account. Non-interest bearing Resident For-

71

eign Currency (D) (RFC (D)) with ICICI Bank can be maintained in four major currencies (USD,

EURO, GBP and Japanese Yen)

PRIVILEGE BANKING :

Privilege banking service ensures preferential treatment to its customers.

Silver privilege A/c

Waiver of multi-city cheque book usage up to Rs. 1,00,000 per month.

Waiver of DD/PO charges for up to Rs.50,000 per day.

Preferential rates of gold coins, deposits locker &foreign exchange.

Quarterly average balance requirement of Rs.25000.

Gold privilege A/c

Priority processing at all ICICI Bank branches and customer care.

Free usage of payable -at-par cheque book.

Free international gold debit card with higher daily withdrawal and spend limit.

Waiver of DD/PO charges for up to Rs.100,000 per day.

Free anywhere banking facility.

Preferential rates for gold coins, deposit lockers and foreign exchange.

Quarterly Average Balance (QAB) requirement of Rs.50000.

Titanium privilege A/c

Branch relationship manager supported with phone banking relationship man-

ager.

Priority processing at ICICI Bank branches and customer care.

Free international titanium debit card with higher daily withdrawal and spend limit.

Free anywhere banking facility.

Free usage of multi-city cheque book.

Free physical monthly account statement.

Complete waiver on DD/PO charges.

Preferential rates for gold coins, deposit lockers and foreign exchange.

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Quarterly average balance (QAB) requirement of Rs.75000 and Total Relation-

ship Value (TRV)of Rs. 5,00,000.

Family banking:

Superior product benefits of privilege banking, wealth management and

global private client (GPC) available to all the members of your family while

the required minimum balance can be maintained in any of the accounts.

Access to superior benefits for the entire family.

Flexibility to maintain balances across account.

Lower minimum balance requirement at individual customer level.

Single family bank – convenience for the entire family and easier funds management.

Outward Remittance:

Send money to your loved ones abroad

ICICI Bank offers you a simple way to send money outside India. Our Outward Remittance facil-

ities make remitting money abroad quick, and reliable. ICICI Bank’s Outward Remittance is the

solution for your all your needs. Be it money for education, gift money or maintenance for loved

ones or donation for a cause. Our extensive network gives us reach to most parts of the world.

Advantage Deposit

Advantage Deposit is a combination of fixed deposit and mutual fund investment, offering you

the safety of a fixed deposit and the returns of an equity fund. Advantage Deposit counters eq-

uity-market fluctuations through Systematic Investment Plans.

Combination of a Fixed Deposit (with monthly interest payout) and Systematic Invest-

ment Plan (SIP) of a Mutual Fund.

Re-investment of monthly interest payout of Fixed Deposit into systematic investment

plan of Mutual Fund.

Automatic debits to account through Standing Instruction / ECS debit mandate.

New Pension System of Government of India

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ICICI Bank with 49 branches is a Point of Presence (POP) for the NEW PENSION SYSTEM

launched on May 1, 2009 by the Government of India. The scheme, promoted by the PFRDA

(Pension Fund Regulatory and Development Authority, Government of India), is a first of its kind

in India and is being launched pan-India by 22 other POP's as well.

The purpose of this pension scheme is to promote security of income to its subscribers in their

old age. The scheme will empower a subscriber to plan his own retirement and pension. It not

only will help him save for life after retirement but also is a good investment tool as the returns

are market-driven. For optimum returns, the Government has appointed six fund managers for

subscribers to choose from.

Various Loans offered by ICICI Bank

HOME LOAN

Interest rates on home loans have come down considerably in the last

few years. Individuals, who opted for housing loans in the years gone

by, are still servicing them at 17% to 21% per annum. Quite a price to

pay, since one can get a loan today for around 12% per annum. In

74

such a case, you can opt for a balance transfer. Under this scheme, customers can replace their

existing old high interest loan by a cheaper (equal to applicable current rates) loan. ICICI Home

Finance will not only finance the balance amount of outstanding loan but also your prepayment

charges to the old housing finance company.

The result:

A lower EMI with the same tenure .

A reduced tenure with the same EMI.

A reduced tenure and EMI .

The same EMI and tenure but an additional amount as a loan.

PERSONAL LOANS

ICICI Bank Personal Loans are easy to get and absolutely hassle

free. With minimum documentation you can now secure a loan for an

amount up to Rs. 15 Lakhs.

Loans for salaried & self employed individuals.

Loans are available from Rs. 20,000 to Rs. 15 Lakhs.

Repayment tenures from 12 - 60 months.

No Security, Collateral or Guarantors required.

Loans can be used for any purpose with no questions asked regarding the end use of

the loan.

A balance transfer facility available for those who want to retire any higher debt.

All loan repayments are done via equated monthly installments (EMI).

CAR LOAN

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The NO. 1 financier for car loans in the country. Network of more than 1500 channel partners in

over 780 locations. Tie-ups with all leading automobile manufacturers to ensure the best deals.

Flexible schemes & quick processing. Hassle-free application process on the click of a mouse.

COMMERCIAL VEHICLE LOAN

Reaches you through more than 700 locations across

the country.

Range of products under one umbrella.

Funding of various products like HCVs, Buses,

MCVs, LCVs, 3 wheelers & used vehicle.

Range of services on existing loans & extended products like funding of new vehicles,

refinance on used vehicles, balance transfer on high cost loans, top up on existing loans,

Extend product, working capital loans & other banking products..

Preferred financier status with most of the leading manufacturers.

Simple documentation.

Quick turnaround time.

Flexible financing solutions to meet the individual requirement.

TWO WHEELER LOANS:

"Zoom" away in your favourite two wheeler. ICICI provides attractive

schemes at competitive interest rates.

Finance facility available for all two wheelers ranging from

mopeds to motor bikes.

Now avail Finance upto 90%* of the On Road Cost of the vehi-

cle, repayable in convenient tenure options ranging from 6 months to 36 months*.

Ride Easy Pay Easy with ICICI Bank Two Wheeler Loans.

In an unlikely case of your not meeting our norms NO PROBLEM - you can still avail our

loan, any blood relative can be your co-applicant.

Existing ICICI Bank Customers ride away on your favourite Two Wheeler by availing

Loan On Phone*-- a facility to get an instant loan over the phone!! Apply for loan online,

call or through sms.

76

FARM EQUIPMENT LOANS:

ICICI is the preferred financier for almost all leading tractor

manufacturers in the country.

ICICI finances farm equipments in over 381 locations spread

across the country.

Provides fast processing of files with easy documentation.

Flexible repayment options in tandem with the farmer's sea-

sonal liquidity.

Monthly, Quarterly and Half-yearly repayment patterns to choose from. Comfortable re-

payment tenures from 1 year to 6 years.

CONSTRUCTION EQUIPMENT LOAN

Having funded infrastructure for over 4 decades, ICICI understands the

need of the customers better. ICICI Bank offers attractive financial

packages through their excellent distribution network. The products are

customized for new entrepreneur to large business houses. ICICI has

tie-up with leading construction equipment manufacturers for wide range of products. The Bank

take over existing high cost loans at competitive terms resulting in huge savings and is quick in

processing due to easy formalities and one time sanction of loans for disbursement over a

period of time.

OFFICE EQUIPMENT LOAN:

► Minimum documentation required.

► Doorstep Service.

► Competitive Interest rates.

► Flexible repayment structure.

► Hassle-free application process with the click of a mouse.

► Details on your application status online.

MEDICAL EQUIPMENT LOAN:

77

Professional doctors are aware of the distinct advantages that the latest medical equipment

can give their patients. ICICI Bank Medical Equipment Loans supports professionals in their

effort to give the best to their patients. It's our humble way of being involved in a noble

profession.

Loans are offered for:

Purchase of New equipments.

Takeover of Existing loans.

Our Key features are:

Doorstep Service.

Funding in more than 150 locations across the country.

The bank provides Competitive interest rates.

ICICI also offers flexible repayment structure.

LOAN AGAINST SECURITIES

Loans against Securities enables customers to obtain loans against their securities. So they get

instant liquidity without having to sell their securities.

All customers have to do is pledge your securities in favour of ICICI Bank The Bank will then

grant them an overdraft facility upto a value determined on the basis of the securities pledged

by them. A current account will be opened and customer can withdraw money as and when they

require. Interest will be charged only on the amount withdrawn and for the time span utilised.

ICICI offer loans against:

Demat Shares

RBI Relief Bonds

Mutual Funds Units

India Millennium Deposits (IMDs)

ICICI Bank Bonds

Life Insurance Policies (Single Premium

CREDIT CARDS:

ICICI Bank Credit Cards give you the facility of cash, convenience and

a range of benefits, anywhere in the world. These benefits range from

78

life time free cards, Insurance benefits, global emergency assistance service, discounts, utility

payments, travel discounts and much more.

DEBIT CARDS:

The ICICI Bank Debit Card is a revolutionary form of cash that

allows customers to access their bank account around the clock,

around the world. The ICICI Bank Debit Card can be used for

shopping at more than 100,000 merchants in India and 13 million

merchants worldwide.

TRAVEL CARD:

Presenting ICICI Bank Travel Card. The Hassle Free way to Travel

the world. Traveling with US Dollar, Euro, Pound Sterling or Swiss

Francs; Looking for security and convenience; take ICICI Bank Travel

Card. Issued in duplicate. Offers the Pin based security. Has the

convenience of usage of Credit or Debit card.

PRE PAID CARDS:

ICICI Bank brings to you a complete bouquet of pre-paid cards

providing payment solutions at your fingertips. ICICI Bank pre-paid

cards are a safe &convenient way for associate payments,

disbursements, gifting & small ticket transactions. Pre-paid cards

are available on a VISA platform thus providing accessibility to over

one lakh merchant establishments & cash withdrawal from all VISA ATMs in India.

INVESTMENTS

ICICI Bank cares about all

needs. Along with Deposit

products and Loan offerings,

79

ICICI Bank assists people to manage their finances by providing various investment options

ranging from ICICI Bank Tax Saving Bonds to Equity Investments through Initial Public

Offers and Investment in Pure Gold. ICICI Bank facilitates following investment products:

ICICI Bank Tax Saving Bonds

Government of India Bonds

Investment in Mutual Funds

Initial Public Offers by Corporate

Investment in "Pure Gold"

Foreign Exchange Services

Senior Citizens Savings Scheme, 2004

Customers can invest in above products through any of ICICI bank branches. For select

products ICICI Bank also provides the ease of investing through electronic channels like ATMs

and Internet (ICICIdirect.com)

ICICI BANK BONDS

All ICICI Bank Bonds have been rated "AAA" by CARE and "LAAA" by ICRA indi-

cating the highest degree of safety for your money.

Investment in ICICI Bank Bonds are eligible for tax rebate under Sec 88 to the full

extent possible.

Bonds are listed on BSE, NSE.

GOI BONDS

8% Savings Bonds (Taxable), 2003.

Low risk.

Reasonable investment tenure.

Nomination facility available.

Cannot be traded in secondary market.

Interest income taxable.

Mutual Funds

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Mutual Funds pool money of various investors to purchase a wide variety of securities while

pursuing a specific goal. Selection of Securities for the purpose is done by specialists from the

field. Returns generated are distributed to the Investors.

Mutual Fund Companies offer various schemes. Investors can choose any particular

Fund/Scheme or mix of Funds/Schemes depending upon their perception towards risk.

Investment is done on the basis of prevailing Net Asset Values of various schemes. Mutual

Funds Investments are subject to Market Risks.

Types of Funds Sold

ICICI Bank helps investor determine which types of funds you need to meet your investment

goals. This may include the following types of funds:

Debt: Liquid schemes, Income schemes, G-sec schemes, Monthly Income Schemes etc.

Equity: Diversified Equity Schemes, Sector Schemes, Index Schemes etc.

Hybrid Funds: Balanced Schemes, Special Schemes - Pension Schemes, Child education

Schemes etc.

ICICI Bank helps investors identify an appropriate mix of Mutual Fund schemes for their

portfolio using asset allocation strategies.

Through ICICI Bank investor can invest in various schemes of multiple mutual funds with decent

performance record. investor can take the aid of ICICI Bank’s various research reports on

mutual funds and their schemes before choosing a scheme for investment. ICICI Bank offers

investment in Mutual Funds through Multiple Channels. With ICICI Bank, investor can invest in

Mutual Funds through following channels.

ICICI Bank Branches

ICICI Bank ATM’S

ICICIdirect.com

And provide a dedicated workforce to serve clients.

81

Before being deputed, our officers complete a comprehensive training program and,

once deputed, they receive thorough instructions in financial planning skills and tech-

niques

Throughout their careers officers also attend programs to update their skills. All officers

in charge of Mutual Funds are certified professionals by AMFI (Association of Mutual

Funds in India)

Many of these officers also hold professional degrees like - MBA, CA, ICWA, and CFA

etc.

ICICI keeps the investors updated on the latest happenings in the Mutual Fund industry and the

various financial markets through regular electronic updates (daily & weekly) through Emails.

ICICI also send out a monthly magazine on investments to their customers.

Initial public offerings (IPO)

Investor can invest in IPOs online through www.icicidirect.com with same convenience of

investing in equities - hassle-free and with zero paper work. Also, get in-depth analyses of new

IPOs issues (Initial Public Offerings) which are about to hit the market. IPO calendar, recent IPO

listings, prospectus/offer documents and live prices will help you keep on top of the IPO

markets.

ICICI Bank Pure Gold

Gold has been traditionally the most favored form of investment for Indians. In fact, India,

even today is amongst the highest consumers of Gold in the world. However, the Gold market

remains largely unorganized with reliability and convenience remaining the key issues for

gold buyers in the country. ICICI Bank with its `Pure Gold' offer attempts to bridge the gap

between the need of the customers for buying gold and availability of an organized avenue to

satisfy that need, by taking care of the two key components:-

Reliability and Convenience.

CHAPTER 3 82

3.1 INTRODUCTION OF CUSTOMER SATISFACTION

83

Customer satisfaction refers to the extent to which customers are happy with the products and

services provided by a business.

Customer satisfaction levels can be measured using survey techniques and questionnaires

DEFINITIONS:

Definition 1: Customer satisfaction is equivalent to making sure that product and service

performance meets customer expectations.

Definition 2: Customer satisfaction is the perception of the customer that the outcome of a

business transaction is equal to or greater than his/her expectation.

Definition 3: Customer satisfaction occurs when acquisition of products and/or services

provides a minimum negative departure from expectations when compared with other

acquisitions.

Gaining high levels of customer satisfaction is very important to a business because

satisfaction customers are most likely to be loyal and to make repeat orders and to use a wide

range of services offered by a business

There are many factors which lead in high levels of customer satisfaction including.

Products and services which are customer focused and hence provide high levels of value for

money.

What is clear about customer satisfaction is that customers are most likely to appreciate

the goods and services that they buy if they are made to feel special. This occurs when they feel

that the products and services that they buy have been specially produced for them or for

people like them.

BENEFITS OF CUSTOMER SATISFACTION

The importance of customer satisfaction and support is increasingly becoming a vital

business issue as organization realize the benefits of Customer Relationship Management

(CRM) for providing effective customer service. Professionals working within customer-focused

business or those running call centers or help desks, need to keep informed about the latest

customer satisfaction techniques for running a valuable customer service function. From small

customer service departments to large call centers, the importance of developing a valued

84

relationship with customers using CRM is essential to support customer and long-term business

growth.

What Do Customers Want?

Before we begin to create tools to measure the level of satisfaction, it is important to develop a

clear understanding of what exactly the customer wants. We need to know what our customers

expect from the products and services we provide.

Customer expectations have two types –

Expressed

Implied

Expressed Customer Expectations are those requirements that are written down n the contract

and agreed upon by both parties for example, product specifications and delivery requirements.

Supplier’s performance against these requirements is most of the items directly measurable.

Implied Customer Expectations are not written or spoken but are the ones the customer would

‘expect’ the supplier to meet nevertheless. For example, a customer would expect the service

representative who calls on him to be knowledgeable and competent to solve a problem on the

spot.

There are many reasons why customer expectations are likely to change overtime. Process

improvements, advent of new technology, changes in customer’s priorities, improved quality of

service provided by competitors are just a few examples.

The customer is always right. Supplier’s job is to provide the customer what he/she wants, when

he/she wants it. Customer satisfaction is customer’s perception that a supplier has met or

exceeded their expectations.

WHAT CONSTITUTES SATISFACTION?

85

We cannot create customer satisfaction just by meeting customer’s requirements fully

because these have to be met in any case. However failing short is certain to create

dissatisfaction

Major Attributes of customer satisfaction in banking industry can be summarized as:

Product quality

Premium Outflow

Return on Investment

Services

Responsiveness and ability to resolve complaints and reject reports.

Overall communication, accessibility and attitude.

WHAT ARE THE TOOLS?

Customer expectations can be identified using various methods such as:

Periodic contract reviews

Market research

Telephonic interviews

Personal visits

Warranty records

Informal discussions

Satisfaction surveys

Depending upon the customer base and available resources, we can choose a method that

is most effective in measuring the customer’s perceptions. The purpose of the exercise is to

identify priorities for improvements. We must develop a method or combination of methods that

helps to continually improve service.

CUSTOMER SATISFACTION SURVEYS

Formal survey has emerged as by far the best method of periodically the customer

satisfaction. The survey are not marketing tools but an information—gaining tool. Enough

homework needs to be before embarking on the actual survey. This includes:

Defining Objectives of the Survey

86

Design Survey approach

Develop questionnaires and forms

Administer Survey (Email, Telephone or Post)

Method of compiling data and analyzing the findings

Format of the report to present the findings

There is no point in asking irrelevant questions on a customer satisfaction questionnaire.

The basic purpose is to find out what we are doing right or wrong. Where is the scope for

improvement, where do we stand vis-à-vis other suppliers. How we can serve the customer

better?

A customer satisfaction measurement survey should at least identify the following

objectives:

Importance to customers (Customers priorities)

Customer’s perception of supplier’s performance

Your performance relative to customer’s priorities.

Priorities for improvement

Survey forms should be easy to fill out with minimum amount of time and efforts on

customer’s part. They should be designed to actively encourage the customer to complete the

questions. Yet they must provide accurate data should also be sufficiently reliable for

management decision making. This can be achieved by incorporating objective type questions

where customer has to “rate” on scale of say 1 to 10. For repeated surveys, you could provide

the rating that was previously accorded by the customer. This works like a reference point for

the customer.

Space should always be provided for the customers own opinions this enables them to

state any additional requirements or report any shortcomings that are not covered by the

objective questions.

Normally, we deal various personnel at various levels in the customer’s organization—

the buyer, user, receiving inspector, finance and purchase person etc. surveying a number of

respondents for each customer gives a complete perspective of customer satisfaction. It may be

necessary to device a different questionnaire for each of them.

87

Respondents must be provided a way to express the importance they attach to various

survey parameters. Respondents should be asked to give a weighting factor, again on a rating

scale of say, 1 to 10, for each requirement. This gives a better indication of relative importance

of each parameter towards overall customer satisfaction and makes it easier for suppliers to

prioritize their action plans by comparing the performance rating (scores) with importance rating

(weighing).

3.2 Objective of Customer Satisfaction Survey

The following are all compelling reasons to survey your customers:

Demonstrate commitment to listening to customers.

Enhance profits.

Gain feedback from customers about products, services, and/or support, outside of what

customers provide the sales force.

Improve customer satisfaction and retention.

Improve quality of service.

Increase market share.

Increase repeat business.

Customer loyalty

Effective communication

Spotting trends

Learn where the company stands in comparison with competitors.

Measure and compensate the sales organization.

Obtain information on product developments, priorities, and requirements.

Obtain input on new products or services.

Provide a way for unhappy customers to vent.

Target resources on issues of concern to customers.

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Measuring customer satisfaction

Organizations need into retain existing customers while targeting non-customers. Measuring

customer satisfaction provides an indication of how successful the organization is at providing

products and/or services to the marketplace.

Customer satisfaction is measured at the individual level, but it is almost always reported at an

aggregate level. It can be, and often is, measured along various dimensions. A hotel, for

example, might ask customers to rate their experience with its front desk and check-in service,

with the room, with the amenities in the room, with the restaurants, and so on. Additionally, in a

holistic sense, the hotel might ask about overall satisfaction “with your stay

As research on consumption experiences grows, evidence suggests that consumers purchase

goods and services for a combination of two types of benefits: hedonic and utilitarian. Hedonic

benefits are associated with the sensory and experiential attributes of the product. Utilitarian

benefits of a product are associated

Customer satisfaction is the overall impression of customer about the supplier and the products

and services delivered by the supplier.

Factors that could affect customer satisfaction:

Department wise capability of the supplier.

Technological and engineering or re-engineering aspects of products and services.

Type and quality of response provided by the supplier.

Supplier’s capability to commit on deadlines and how efficiently they are met.

Customer service provided by the supplier.

Complaint management.

Cost, quality, performance and efficiency of the product.

Supplier’s personal facets like etiquettes and friendliness.

Supplier’s ability to manage whole customer life cycle.

Compatible and hassle free functions and operations.

89

How to develop and improve Customer Satisfaction

Over the last few decades companies have increasingly begun to realize the importance of

customer satisfaction. Where trading environments have become saturated and customers

increasingly hard to come by, customer retention has become imperative. Business has

concluded that customer satisfaction can therefore deliver financial benefit providing stability

and a platform for growth, the alternative is a dissatisfied customer who seldom expresses their

complaints they simply buy elsewhere.

Customer Satisfaction can be analyzed, measured and improved, the tools and methods

required to build and improve it are wide and varied, however there is consensus over the

basics of a toolkit of processes and polices that business can exploit as they aim to build

customer satisfaction.

1/ Assess the customer’s needs

Aligning product and service offerings with customer needs can only be achieved when

sufficient knowledge of customer requirements has been captured. Accurately understanding

the customer’s needs is the most important step towards achieving customer satisfaction.

It’s worth pointing out that needs are often comprised of a mixture of both product and service

offerings – for example – supermarket customers may be influenced over price and availability

of products whilst also being influenced by how long they have to queue at the checkout.

There are a variety of methods for assessing customer needs from modeling and statistical

techniques to more standard assessment methods such as observing and questioning current

and prospective customers. Assessment often takes the form of market analysis, buying trends

and behaviors and determining factors that influence the customer.

Needs assessment is an ongoing process and has various guises from questionnaires to

workshops to complaints management. Fundamentally the customer is best placed to convey

their needs and businesses should incorporate an appropriate strategy to track these.

90

2/ Ownership by Senior Management and involvement of the whole organization

Once the customer’s needs have been captured they should be championed by the whole

organization. To succeed customer satisfaction should be incorporated as a corporate strategy

which should be supported from the senior management downwards. For the strategy to

succeed the voice of the customer needs to reach those at the very top of the organization and

the VP or Management Director must champion the customer’s requirements and ensure that

the business is shaped and resourced to deliver.

However, it doesn’t just stop with senior management, the whole organization needs to

understand the requirements of their customers and the role they have to play in satisfying

them. Involvement will usually mean more than a crudely drawn up corporate values such as

“partnership” or “customer focused” but staff will be tuned to requirements, be involved in their

delivery and be acutely aware of the impact on service levels. The whole business, including

those in senior positions should be able to talk fluently and accurately regarding the levels of

satisfaction within its customer base together with engaging and participating in improvement

programs.

A tuned organization will target staff development to support a customer orientated strat-

egy. Many organizations also link financial rewards with customer satisfaction perfor-

mance – while this can be fruitful, businesses should ensure that incentives need to be

placed correctly to deliver appropriate results.

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CHAPTER 4

92

CONSUMER RESEARCH IN DIFFERENT DISCIPLINES

A considerable body of literature exists on consumption, consumer behaviour and consumer

decision making process.

Most of the consumer research focused on adopter categories, habits, attitudes and intentions

rather that on actually measuring the satisfaction level with the service.

CONSUMER SATISFACTION PROCESS

The paramount goal of marketing is to understand the customer and to influence buying

behaviour.

The process can be depicted as follows:-

Need recognition- realization of the difference between the desired and the current situa-

tion that serves as a trigger for entire process.

Search for information.

Pre purchase alternative evaluation.

Consumption(utilization of the procured option)

Post purchase alternative re-evaluation.

Divestment(disposal of the unconsumed product and it’s remnants)

COMPANY’S EFFORT TO ENSURE SATISFACTION OF CUSTOMERS:

Objectives of ICICI

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Promote good and fair banking practices by setting minimum standards in

dealing with you

Increase transparency so that you can have a better understanding of what you

can reasonably expect of the services;

Encourage market forces, through competition, to achieve higher operating

standards;

Promote a fair and cordial relationship between you and your bank;

Foster confidence in the banking system

To Help You To Understand How Our Financial Products And Services Work By:

Giving you information about them in any one or more of the following languages: Hindi,

English or the appropriate local language.

Ensuring that our advertising and promotional literature is clear and not misleading

Ensuring that you are given clear information about our products and services, the terms

and conditions and the interest rates/service charges, which apply to them.

Giving you information on what are the benefits to you, how you can avail of the benefits,

what are their financial implications and whom you can contact for addressing you

queries.

To Help You Use Your Account Or Service By:

Providing you regular appropriate updates.

Keeping you informed about changes in the interest rates, charges or terms and

conditions.

Information

You can get information on interest rates, common fees and charges through any one of the

following:

Looking at the notices in our branches ;

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Phoning our branches or help-lines;

Looking on our website;

Asking our designated staff/help desk ;or

Referring to the service guide/Tariff Schedule.

Before You Become a Customer we will:

give you clear information explaining the key features of the services and products you

tell us you are interested in;

give you information on any type of products and services which we offer and that may

suit your needs;

tell you if we offer products and services in more than one way [for example, through

ATMs, on the Internet, over the phone, in branches and so on] and tell you how to find

out more about them;

tell you what information we need from you to prove your identity and address, for us to

comply with legal, regulatory and internal policy requirements

Advertising, Marketing and Sales

We will make sure that all advertising and promotional material is clear, and not

misleading.

In any advertising in any media and promotional literature that draws attention to

banking service or product and includes a reference to an interest rate, we will also

indicate whether other fees and charges will apply and that full details of the relevant

terms and conditions are available on request.

If we avail of the services of third parties for providing support services, we will require

that such third parties handle your personal information (if any available to such third

parties) with the same degree of confidentiality and security as we would.

We may, from time to time, communicate to you various features of our products availed

by you. Information about our other products or promotional offers in respect of our

products/services, will be conveyed to you only if you have given your consent to receive

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such information/ service either by mail or by registering for the same on our website or

on our phone banking/customer service number.

We have prescribed a code of conduct for our Direct Selling Agencies (DSAs) whose

services we may avail to market our products/ services which amongst other matters

requires them to identify themselves when they approach you for selling our products

personally or through phone.

In the event of receipt of any complaint from you that our representative/courier or DSA

has engaged in any improper conduct or acted in violation of this Code, we shall take

appropriate steps to investigate and to handle the complaint and to make good the loss.

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CHAPTER 5

97

RESEARCH METHODOLOGY

INTRODUCTION

Research in common parlance refers to a search for knowledge. One can also define

research as a scientific and systematic search for pertinent information on a specific

topic. In fact, research is an art of scientific investigation. “Research is a systematized

effort to gain new knowledge”

Research is an original contribution to the existing knowledge for its advancement. It is

the pursuit of truth with the help of study, observation, comparison and experiment. In

short knowledge through objective and systematic method of finding solution to a

problem is research. Research refers to the systematic method consisting of

enunciating the problem, formulating the hypothesis, collection of the facts.

Title of the Study

“A Study on Customer Satisfaction In Indian Retail Banking With Special

Reference Of ICICI Bank”

Objective of the Study

Each research study has its own specific purpose. It is like to discover to Question

through the application of scientific procedure. But the main aim of our research to find

out the truth that is hidden and which has not been discovered as yet. My research

study has following objectives:

To Measure The Level of Satisfaction of Retail Banking Customers.

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To identify the factors which affect the customer satisfaction level

in retail banks.

To study about the competitive position of ICICI Bank in Competitive Market.

To Study the customers attitude towards the financial products of the ICICI Bank.

To Study the customers opinion towards the services provided by the ICICI Bank.

To study about the effectiveness & efficiency of ICICI Bank in relation to its com-

petitors.

To study about whether people are satisfied with ICICI Bank Services & Man-

agement System or not.

Type of Research:-

Descriptive Research: Descriptive research includes fact finding enquiries of different

kinds. The major purpose of descriptive research is description of the state of affairs as

it exists at present. Researcher has no control over the variables of this type of re-

search. The methodology of the study is based on primary &secondary data.

Data Collection:

Primary Data: Data is collected primarily through personal contact, meeting, interview

and questionnaire with the concerned authority of the ICICI Bank and respondents.

Secondary Data:

Secondary data was collected by gathering information from concerned personnel at

these firms and the rest was collected from the various journals and websites.

Sample Size & Method Of Selecting Sample:-

The sampling method so as to obtain a representative sample is the Non-probability

sampling methods. Under Non-probability sampling, the question addressed the basic

questions relating to the level of satisfaction with in customers.

A random sample of 25 people was taken. I selected the respondents to the survey on

the basis of judgment sampling with convenience taken into account.

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Scope of the study:-

The study is specific only to retail banking in India.

Understand different facilities provided by the bank to the customers.

To do the careful study of steps which bank takes to attract the customers.

To study how bank are working for the development of the population and the economy.

The study is also useful to the bank to formulate a systematic structure for providing fa-

cilities to the customers.

It informs customers about banks progressive attitude towards customers.

Understand the overall performance and progress of the bank.

The study also relates To Customer Satisfaction and Its Related Factors. The factors

studied are:

Service provided by the bank.

The Image or Personality of the Bank.

Convenience Provided To The Customers.

Pricing policies of the bank.

Maintenance Of Relationship With The Customers

Limitations of the Study:-

The overall data collected through one branch of the bank that is Vidhyadhar Nagar

Branch Jaipur. Therefore it makes some limitations to collect the data and analyze.

A customer‘s satisfaction towards the Branch is considered for study, hence the struc-

ture; other concepts of the banks are excluded for the detail study.

The study is on the information collected from bank, during very short period of the case

study work. So only limited data is collected and no detailed study about case is carried

out.

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The study considered only the customers satisfaction, so other concepts of the banks

are excluded.

CHAPTER 6

101

FINDINGS

From the details of the study, we can enumerate the observation of the project report i. e.

customers satisfaction towards the ICICI Bank, Jaipur in the form of finding as below.

1. It was found from the study that bank believes in quality service rather than quantity of

service.

2. The officials employed are very much enthusiastic about their job.

3. The officials try to make best relation with the customers.

4. There is separate counter for NRI services.

5. The registers and files are maintained on a daily basis.

6. The registers are maintained in a well organized manner.

7. The marketing strategy of the bank is very attractive.

8. The bank always tries to attract customers with innovative offers.

9. Both the bank investment deposit ratio is on the declining trend

10. Both the banks has shown better utilization of cash portfolio

11. ICICI bank Interest expenses to interest earned remains the same Over 2 Years whereas

SBI shows reduction.

12. Other Income ratio remains fluctuation in both the banks.

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CHAPTER 7

103

Data Analysis & Interpretation

Chart-1 Customer have Account with ICICI Bank

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As the above graph shows that most of the customers i.e. 50% having saving

account in ICICI Bank & 25% customers having current account, 20% loan

account & 5% having other account in ICICI bank.

Chart-2 Attributes compelled by the customers to open saving account in

any bank

As with above analysis, it is found that 37% customers give more preference to ATM

facilities provided by bank at the time of opening a saving account in a bank and rest of

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the 63% customers give preference to working hours, Cheque book, Internet banking &

value added services.

Chart-3 Customers having Bank Account With ICICI Bank From how many

years

As with above analysis, it is found that most of the customers having bank account in

ICICI bank since last 1 to 5 years.

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Chart-4 Reason for preference of ICICI Bank

As with above analysis, it is found that most of the customers prefer the ICICI bank

because of it’s better quality & services and 30% customer prefer for quick transaction

and 20% customers prefer for more support to customers.

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Chart-5 Medium for customer awareness about the services provided by

ICICI Bank

The above chart shows that 36% customers know about the services provided by the

bank through advertisement and 29% customers through friends & relatives, 21%

customers through selling agent and 14% customers through other sources.

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Chart-6 Thinking of the people about the Banks

The above chart shows that most of the customers think bank as a security providing

organization and 33% customers think as a saving option, 11% customers think as

imposition of a burden of expenses and 7% customers think others.

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Chart-7 Suitability of processing of loan for the customers

IF NO>…………………………………..WHY?

(1) TAKING LONGER TIME PERIOD

(2) DOCMENTATION COMPLEXITY

(3) VERIFICTION

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With the above analysis, it is found that 60% customers feel suitability with the

processing of loan and 30% customers feel unsuitability & 10% can’t say about this.

Chart-8 Opinion of the customers about the processing charges of loan

The above chart shows that 50% customers says that processing charges of loan are

medium and 30% customers says that processing charges of loan are high & 20%

customers says low.

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Chart-9 Type of loan Preferred by the customers of ICICI Bank

The above chart shows that 70% customers prefer housing loan and 20% customers

prefer car loan, 8% customers prefer education loan and 2% customers prefer personal

loan.

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Chart-10 Customers Opinion about the interest rate charged on loan by the ICICI bank

The above chart shows that 40% customers say that interest rate charged on loan by

ICICI bank is average and 30% customers say high, 30% customers say low with

compare to another banks.

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Chart-11 Internet banking Services availed by the customers of ICICI Bank

As with above analysis, it is found that most of the customers doesn’t use internet

banking services due to lack of awareness, connectivity problems & more complexity

and only 30% customers using internet banking services of ICICI bank.

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(IN CASE OF NO)

Chart-12 Reasons for not using Internet banking Service by the customers

As with above analysis, it is found that those customers who doesn’t use internet

banking services most of them doesn’t know about internet banking services and 35%

doesn’t use due to connectivity problem & 25% customers doesn’t use internet banking

services due to more complexity.

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Chart-13 Customer opinion towards the financial services provided by the ICICI Bank

The above chart shows that 40% customers give good to the financial services provided

by the ICICI bank and 30% customers give very good, 20% customers give excellent &

10% customers give average to the financial services provided by the ICICI bank.

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Chart-14 Level of Customer satisfaction towards the services provided by ICICI

Bank

As with above analysis, it is found that 34% customers are satisfied with the services

provided by the ICICI bank and 12% customers are extremely satisfied, 20% customers

at moderate level, 20% customers are dissatisfied and 8% customers are extremely

dissatisfied with the services provided by the ICICI bank.

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CHAPTER 8

118

SWOT ANALYSIS

STRENGTHS

All the branches are interconnected which give the unique facility of anywhere banking.

Branches of ICICI Bank are well equipped with advanced technology to provide the customers

with taster banking services

All operations of the bank are carried on with the help of computers thus transaction are

carried with greater efficiency.

ATM +Debit card facility.

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High number of executives which make the work of customers very convenient.

The withdrawal limit provided by the bank is 40000 per day through ATM & 100000

through cheque per day.

Maximum customer base in Jaipur as compared to any of the bank.

WEAKNESS

Less awareness among general masses about the different services provided by the

bank.

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High bank service charges.

People’s faith in private banks is still not very high.

Provide less credit period.

Minimum balance level of all the accounts are very high.

OPPORTUNITIES

People’s dissatisfaction towards nationalized banks in terms of services has turned to

be blessing for private banks.

Among the private players ICICI bank have the excellent brand image.

There lies a great scope in Forex department which is unutilized to a greater extent can

yield much better results by which the bank can increase its volume.

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Special services can be provided to women as the women’s role is becoming promi-

nent.

The trust of people is increasing on the banks rather than going for financial institution.

There is vast untapped opportunity which lies for every bank in the rural area.

Recruit professionally qualified students

THREATS

Reorganization of PSU’s. All the PSU’s have started to redefine their services to attract

customer’s attention.

A few foreign banks have been permitted to increase their number branches and its en-

try has taken away some business of the existing banks.

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Stringent norms by RBI in any time in future can be a threat to private banks as their ac-

tivities can be adversely affected.

Stiff Competition

No proper facility for uneducated customers

CHAPTER 9

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Conclusion

Thus, ICICI has been able to use technology to provide value-added service to its customers

during the last few years. For ICICI, technology is an integral part of their business. However,

their overall progress could have been smoother but for certain internal and extraneous factors

and also a pressure on spread due to a competitive market (Annual report, 2010 –11). E-

banking has become a necessary survival weapon and is fundamentally changing the banking

industry worldwide. Today, the click of the mouse offers customers banking services at a much

lower cost and also empowers them with unprecedented freedom in choosing vendors for their

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financial service needs. No country today has a choice- whether to implement E-banking or not

given the global and competitive nature of the economy. ICICI have top grade and constantly

think of new innovative customized packages and services to remain competitive. The invasion

of banking by technology has created an information age and commoditization of banking

services. ICICI have come to realize that survival in the new e-economy depends on delivering

some or all of their banking services on the Internet while continuing to support their traditional

infrastructure. The rise of E-banking is redefining business relationships and the most

successful banks will be those that can truly strengthen their relationship with their customers.

Without any doubt, the international scope of E-banking provides new growth perspectives and

Internet business is a catalyst for new technologies and new business processes.

CHAPTER 10

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SUGGESTIONS

1. The company should adopt best marketing strategy to expansion the market.

2. To increases its branches.

3. To increases more activity rather than banking system.

4. To make good relationship with its customer.

5. To make effort for increasing the awareness about the internet banking among the customers

6. To reduces the interest rate of loan process.

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7. To reduces the minimum amount of maintaining the account.

CHAPTER 11

127

Confidential Questionnaire

Dear SIR/MADAM, I am conducting survey on ICICI. I shall be very thankful to give your few minutes to me for answering my few questions below.

NAME……………………………………… AGE………………

MARITAL STATUS……………………… OCCUPATION…………………………….

EDUCATIONAL QUALIFICATION………………………………….

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1. What type of account do you have in ICICI Bank?

(a) Current (b) Saving (c)Loan (d)Others

2. Which of the following attributes compelled you to most open saving account in any bank?

(a) ATM (b) Cheque book (c) Internet Banking (d) Working hours (e) value added services

3. For the past how many years you have account with ICICI bank?

(a) Less than 1 year (b) 1-5 years (c) More than 5 years

4. Why do you prefer ICICI bank?

(a) Quality and services (b) Quick transaction (C)Support to customer

5. How would you know about the services provided by the ICICI Bank?

(a) Through selling agent (b) Through friends & relatives (c) Through advertisement (d) Others

6. What the Peoples think about the banks?

(a) Security (b) Saving (c) Imposition of a burden of expenses (d) Others

7. The process of loan is suitable to you?

(a) Yes (b) No

If no ………………….Why

(a) Taking longer period of time

(b) Documentation Complexity

(c) Verification

8. What is your opinion about the processing charges of loan?

(a) Low (b) Medium (c) High

9. Which kind of loan do you prefer?

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(a) Housing loan (b) Personal loan (c) Car loan (d) Education loan

10. What is your opinion about the interest rate charged on loan by the ICICI bank?

(a) Low (b) Medium (c) High

11. Do you avail internet banking?

(a) Yes (b) No

12. In case of no, Why are you not using internet banking

(a) Lack of awareness (b) Connectivity problem (c) More complex for use

13. What do you feel about overall services of ICICI bank?

(a) Excellent (b) Very good (c) Good (d) Average

14. Would you like any recommendation to ICICI Bank?

…………………………………………………………………………………………………………..

……………………………………………………………………………………………………………

……………………………………………………………………………………………………………

CHAPTER 11

130

BIBLIOGRAPHY

BOOKS:

Kothari C. R.: Research Methodology=methods and techniques.

Kotler Phillip: Marketing Management Eleventh revised edition, 2008..

Khan, M Y , Financial services, Tata McGraw-Hill, New Delhi 2010.

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Khan, M Y ,Indian Financial system, Tata McGraw-Hill, New Delhi 2010

WEBLIOGRAPHY

Http://www.icicibank.com

http://finance.indiamart.com/investment_in_india/banking_in_india.html

http://finance.indiamart.com/investment_in_india/nationalisation_banks.html

http://en.wikipedia.org/wiki/banking_in_india

http://en.wikipedia.org/wiki/bank

http://moneycentral.msn.com/banking/services/home.asp

Http://catalogs.indiamart.com/services/banking-services.html

NEWS PAPAERS

Times of India

Economic Times

Business today

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