A Project Report

A Project Report

OnMarket potential for ICICI banks Salary Accounts in Bangalore CityAt

ICICI Bank Ltd .

Submitted by

VEENA CHOPADE

Reg No: MBA 03003012

Under the guidance of

Dr. D.N.S Kumar

&

Mr. Girish Hegde

KLSs INSTITUTE OF MANAGEMENT EDUCATION

AND RESEARCH

BELGAUM-590006

CONTENTS

1. Executive summary------------------------------------------------------ 1 6

2. Introduction --------------------------------------------------------------- 7 11

3. History of ICICI----------------------------------------------------------12 14

4. Company Profile--------------------------------------------------------- 14 54

5. Design of the study------------------------------------------------------ 55

6. Research Analysis------------------------------------------------------- 56 65

7. Conclusion &Suggestions---------------------------------------------- 66 67

8. Bibliography-------------------------------------------------------------- 68

9. Annexure------------------------------------------------------------------ 69 70

EXECUTIVE SUMMARYRESEARCH OBJECTIVE

To ascertain the market potential for ICICI banks Salary Accounts in Bangalore City.

Sub-Objectives:

To know the awareness level of The ICICI banks Salary Accounts in Bangalore City.

To determine the (percentage) market share of ICICI Bank.

To know the satisfaction level of the corporate with respect to the services offered by different banks Salary Accounts in Bangalore city.

To find out the key causes for dissatisfaction.

To find the potentiality of routing corporate salary through ICICI Bank.

Scope of the study:This study is aimed towards the market potential of corporate salary account provided by the ICICI Bank ltd. The study is contender towards the value-added feature of salary account product of ICICI Bank. The study doesnt deal with the other financial product offered by bank only products offer by retail channel group. Hence the study is limited to the above

Place of research:

Bangalore city.

Research MethodologySince the research was on the salary account product, for that the sample has been taken out from the different industrial area in Bangalore city. The sample has been categorized based on the geographical and demographical characters. As we know salary account product is meant for working class people, so sample has been taken from working class people only.

Before starting the research work, information from all the banks with regard to salary account product has been collected. After getting this secondary information questionnaire has been prepared for approaching the working class people. At the same time some of the web sites have been used to get the additional information regarding salary account product.Research Design

a) Type of Research Study: A social research on Financial activity for economic development using data collected from Respondents as primary data and theoretical data as secondary data.

b) Tool for Collection Data: Structured Questionnaire both for the members of the company and the company.

c) Sample Design: Selected Targeted Company, i.e., PCPL and 50 Respondents selected as Random Sample Method.

d) Method of Collecting Data: Interview method and investigative met

e) Method of Analysis: Quantitative and Descriptive Analysis FINDINGS AND OBSERVATIONS

1. tOTAL SALARY UPLOAD ACCORDING TO AREA WISEINFERENCE: the Electronic City and White Field contributes 40% of the total salary up-load in the Bangalore City, so they become the crucial places to be concentrated.2.BREAK UP OF BANKS PROVIDING CORPORATE SALARY ACCOUNT IN DIFFERENT INDUSTRIAL AREASINFERENCE:

Following are the banks which have highly penetrated the market in salary accounts apart from ICICI.

Sl.No.

AREA

BANK

1.

M. G. Road

Citibank

2.

Bommasandra

Canara bank

3.

Jigani

Corp bank

4.

Hoskote

SBI

5.

Richmond

Citibank

6.

Yelahanka

Citibank

7.

Indiranagar

Citibank

8.

Infantry road

SBI

9.

Electronic city

SBI

10.

Whitefield

ABN Amro

3. SATISFACTION LEVEL WITH EXISTING BANK

INFERENCE: 79% of the companies are satisfied with the services provided by their existing banker where as the 21% of the companies are not satisfied, which will be the most crucial customers which can be materialized.4. CAUSES FOR DISSATISFACTION

INFERENCE: The major cause of dissatisfaction is the after sale service. Therefore feedback from the corporate regarding the service provided to them on the periodic basis necessary.

5. AWARENESS OF ICICIS CORPORATE SALARY ACCOUNTINFERENCES: Awareness is very low in Jigani and Bommasandra industrial area. These areas have got some good companies like TATA ADVANCED MATERLIALS, OTIS, and CROMPTON GREAVES, which are to be tapped.

6. WILLINGNESS TO ROUTE EMPLOYEE SALARY THROUGH ICICISCORPORATE SALARY ACCOUNT

INFERENCES: The companies which want to definitely route their salary through ICICIS corporate salary account contribute 5% and companies which probably want to route to rote their salary through ICICIS salary account contribute 17% , these companies will be the potential market for ICICI.

CONCLUSION AND SUGESTIONS

1. Since Whitefield and Electronic city are identified as crucial areas in terms of total salar upload; ICICI bank has to concentrate maximum on new acquisitions to compete with the existing ABN AMRO and SBI banks in order to penetrate the market. 2. Out of 10 industrial areas Citibank leads other banks in 4 industrial areas in terms of acquiring large customer base. Hence ICICI bank should keep continuous track of fresh recruitments and come up with competitive offerings and features to attract these fresh employees to the companies in these areas. 3. Since 21% of the companies are not satisfied with other banks, these will be the most crucial customers for ICICI. Hence ICICI has to clearly understand and address the needs of these corporate to enhance its market share.4. It would be feasible to set up an ATM counter in Jigani Industrial area due to the following reasons:

a. It has a considerable total salary upload of 1.5 crores per month.

b. Only Corp bank has setup an ATM over there, and most of the corporate are not satisfied with its services.

c. There is no branch of any bank nearby Jigani and surrounding 10Kms.

d. There are some good companies like Tata Advanced materials, OTIS, Crompton Greaves, which contribute more than 80% of salary upload.5. The major cause of dissatisfaction is poor after sale service. Therefore ICICI bank has to get periodic feedback from the corporate and provide quality service.6. Awareness is very low in Jigani and Bommasandra industrial area. Therefore:

Promotional activities like presentations for employers and employees should be conducted in the potential organizations.

Seminars should be organized where in all HR and Finance Managers of potential corporate should be invited and awareness on e-age banking should be done.7. Since 57% of the corporate are unsure to route their salary accounts through ICICI bank, ICICI has to keep a continuous track to convince and convert them to potential customers.LIMITATIONS OF THE RESEARCH

The Research is limited only to Bangalore City.

The survey was conducted on very small part of the respondents, though they have been categorized through geographical and demographical factors , The sample was very small in nature..

Due to time constraint, covering of all areas was not possible; However important Industrial areas and most crowded areas were covered like Electronic city, Richmond Tower, M.G Road, Indira Nagar, etc.

Indian Banking Sector Banking in India has its origin as early as the vedic period. It is believed that the transistion from money lending to banking must have occurred even before Manu, the great Hindu Jurist, who has devoted a section of his work to deposits and advances and laid down rules relating to rates of interest. During the Mogul period, the indegenous bankers played a very important role in lending money and financing foreign trade and commerce. During the days of the East India Company, it was the turn of the agency houses to carry on the banking business. The General Bank of India was the first Joint Stock Bank to be established in the year 1786. The others which followed were the Bank of Hindustan and the Bengal Bank. The Bank of Hindustan is reported to have continued till 1906 while the other two failed in the meantime. In the first half of the 19th century the East India Company established three banks; the Bank of Bengal in 1809, the Bank of Bombay in 1840 and the Bank of Madras in 1843. These three banks also known as Presidency Banks, were independent units and functioned well. These three banks were amalgamated in 1920 and a new bank, the Imperial Bank of India was established on 27th January 1921. With the passing of the State Bank of India Act in 1955 the undertaking of the Imperial Bank of India was taken over by the newly constituted State Bank of India. The Reserve Bank which is the Central Bank was created in 1935 by passing Reserve Bank of India Act 1934. In the wake of the Swadeshi Movement, a number of banks with Indian management were established in the country namely, Punjab National Bank Ltd, Bank of India Ltd, Canara Bank Ltd, Indian Bank Ltd, the Bank of Baroda Ltd, the Central Bank of India Ltd. On July 19, 1969, 14 major banks of the country were nationalised and in 15th April 1980 six more commercial private sector banks were also taken over by the government. Today the commercial banking system in

India may be distinguished into

Public Sector Banksa. State Bank of India and its associate banks called the State Bank group

b. 20 nationalised banks

c. Regional Rural Banks mainly sponsored by Public Sector Banks

Private Sector Banksa. Old generation private banks

b. New generation private banks

c. Foreign banks in India

d. Scheduled Co-operative Banks

e. Non-scheduled Banks

CO-OPERATIVE SECTORThe co-operative banking sector has been developed in the country to the suppliment the village money lender. The co-operatiev banking sector in India is divided into 4 components

1. State Co-operative Banks

2. Central Co-operative Banks

3. Primary Agriculture Credit Societies

4. Land Development Banks

5. Urban Co-operative Banks

6. Primary Agricultural Development Banks

7. Primary Land Development Banks

8. State Land Development Banks DEVELOPMENT BANKS1. Industrial Finance Corporation of India (IFCI)

2. Industrial Development Bank of India (IDBI)

3. Industrial Credit and Investment Corporation of India (ICICI)

4. Industrial Investment Bank of India (IIBI)

5. Small Industries Development Bank of India (SIDBI)

6. SCICI Ltd.

7. National Bank for Agriculture and Rural Development (NABARD)

8. Export Import Bank of India

9. National Housing Bank

Banking System In India

Introduction

The Reserve Bank of India (RBI) is India's central bank. Though the banking industry is currently dominated by public sector banks, numerous private and foreign banks exist. India's government-owned banks dominate the market. Their performance has been mixed, with a few being consistently profitable. Several public sector banks are being restructured, and in some the government either already has or will reduce its ownership.

Banking India has an extensive banking network, in both urban and rural areas. All large Indian banks are nationalized, and all Indian financial institutions are in the public sector.

Private and foreign banks

The RBI has granted operating approval to a few privately owned domestic banks; of these many commenced banking business. Foreign banks operate more than 150 branches in India. The entry of foreign banks is based on reciprocity, economic and political bilateral relations. An inter-departmental committee approves applications for entry and expansion.RBI banking

The Reserve Bank of India is the central banking institution. It is the sole authority for issuing bank notes and the supervisory body for banking operations in India . It supervises and administers exchange control and banking regulations, and administers the government's monetary policy. It is also responsible for granting licenses for new bank branches. 25 foreign banks operate in India with full banking licenses. Several licenses for private banks have been approved. Despite fairly broad banking coverage nationwide, the financial system remains inaccessible to the poorest people in India.

Indian banking system

The banking system has three tiers. These are the scheduled commercial banks; the regional rural banks which operate in rural areas not covered by the scheduled banks; and the cooperative and special purpose rural banks.

Scheduled and non scheduled banks

There are approximately 80 scheduled commercial banks, Indian and foreign; almost 200 regional rural banks; more than 350 central cooperative banks, 20 land development banks; and a number of primary agricultural credit societies. In terms of business, the public sector banks, namely the State Bank of India and the nationalized banks, dominate the banking sector.

Private Banks In India

The RBI issued guidelines regarding the formation and functioning of private sector banks in January 1993. These guidelines are as follows1. The banks shall be governed by the provisions of The Reserve Bank of India Act, 1934 The Banking Regulations Act, 1949 Other relevant statutaries.

2. Private sector banks are required to be registered as public limited companies in India. 3. The authority to grant a license lies with the RBI .

4. The shares of banks are required to be listed on stock exchanges.

5. Preference will be given to those banks whose headquarters are proposed to be located in a centre which does not have headquarters of any other bank. 6. Maximum voting rights of an individual shareholder would be limited to 1% of total voting rights. 7. The new bank would not be allowed to have as its director any person who is already a director in a banking company.8. The bank will be subject to prudential norms in respect of banking operations, accounting policies and other policies, as laid down by RBI. The bank will be required to adhere to the following: Minimum paid up share capital of Rs. 1 bln. Promoters' contribution as determined by the RBI Capital adequacy of 8% of the risk weighted assets Single borrower and group borrower exposure limits in force Priority sector lending Export credit Loan policy within overall policy guidelines laid down by the RBI.

9. The banks will be free to open branches anywhere once they satisfy the capital adequacy and prudential accounting norms.

10. The banks would not be allowed to have investments in subsidiaries, mutual funds and portfolio investments in other companies in excess of 20% of the banks' own paid up capital and reserves. 11. The banks would be required to use modern infrastructural facilities in office equipment, computer, telecommunications etc.

Policy for Investment made in Private Banks

New private sector banks have not been allowed to be set up in India since 1969. With a view to increasing competition in the banking industry and in line with the recommendations of the Narasimhan Committee, the Government has now allowed the entry of such banks.

Close monitoring by RBI

However, the freedom of the entry into the banking sector will be carefully managed by the RBI. The RBI will grant approvals for entry of private sector banks provided such banks offer competitive, efficient and low cost financial intermediation services, result in upgradation of technology in the banking sector, are financially viable and do not resort to unfair means like preemption and concentration of credit, monopolization of economic power, cross holding with industrial groups etc.

Foreign Investment in Banking Sector

Under the scheme, Non Resident Indians are allowed to have primary equity in a new banking company to the extent of 40%. In the case of a foreign banking company or a finance company acting as a technical collaboration or a co-promoter, equity participation is restricted to 20%.

INTRODUCTION

History of ICICI

Bottom of Form

1955

The Industrial Credit and Investment Corporation of India Limited (ICICI) incorporated at the initiative of the World Bank, the Government of India and representatives of Indian industry, with the objective of creating a development financial institution for providing medium-term and long-term project financing to Indian businesses. Mr.A.Ramaswami Mudaliar elected as the first Chairman of ICICI Limited

ICICI emerges as the major source of foreign currency loans to Indian industry. Besides funding from the World Bank and other multi-lateral agencies, ICICI also among the first Indian companies to raise funds from International markets.

1956 : ICICI declared its first Dividend at 3.5%.

1958 : Mr.G.L.Mehta was appointed the 2nd Chairman of ICICI Ltd.

1960 : ICICI building at 163, Backbay Reclamation was inaugurated.

1961 : The first West German loan of DM 5 million from Kredianstalt was obtained by ICICI.

1967 : ICICI made its first debenture issue for Rs.6 crore, which was oversubscribed.

1969 : First two regional offices in Calcutta and Madras were opened.

1972 : Second entity in India to set-up merchant banking services.

1977 : ICICI sponsors the formation of Housing Development Finance Corporation. Managed its first equity public issue. 1978 : Mr. James Raj appointed as the fourth Chairman of ICICI.

1979 : Mr.Siddharth Mehta appointed as the fifth Chairman of ICICI.

1982 : Becomes the first ever Indian borrower to raise European Currency Units.

ICICI commences leasing business.

1984 : Mr. S. Nadkarni appointed as the sixth Chairman of ICICI.

1985 :Mr.N.Vaghul appointed as the seventh Chairman and Managing Director of ICICI.

1986 : ICICI first Indian Institution to receive ADB Loans. First public issue by an Indian

entity in the Swiss Capital Markets.ICICI along with UTI sets up Credit Rating Information Services of India Limited, (CRISIL) India's first professional credit rating agency.

ICICI promotes Shipping Credit and Investment Company of India Limited. (SCICI)

The Corporation made a public issue of Swiss Franc 75 million in Switzerland, the first public issue by any Indian equity in the Swiss Capital Market.

with Commonwealth Development Corporation (CDC), the first loan by CDC for

financing projects in India. 1988 ICI promotes TDICI - India's first venture capital company.

1993 : ICICI sets-up ICICI Securities and Finance Company Limited in joint venture with J.P. Morgan.

1994 : ICICI sets up ICICI Asset Management Company.

1996 : ICICI becomes the first company in the Indian financial sector to raise GDR.

ICICI announces merger with SCICI.

Mr.K.V.Kamath appointed the Managing Director and CEO of ICICI Ltd

1997 : ICICI was the first intermediary to move away from single prime rate to three-tier

prime rates structure and introduced yield-curve based pricing.

The name "The Industrial Credit and Investment Corporation of India Limited " was changed to "ICICI Limited".

ICICI announces takeover of ITC Classic Finance.

1998 : Introduced the new logo symbolizing a common corporate identity for the ICICI Group. ICICI announces takeover of Anagram Finance.

1999 :ICICI launches retail finance - car loans, house loans and loans for consumer durables

ICICI becomes the first Indian Company to list on the NYSE through an issue of American Depositary Shares.

2000 :ICICI Bank becomes the first commercial bank from India to list its stock on NYSE.

ICICI Bank announces merger with Bank of Madura.

2001 :The Boards of ICICI Ltd and ICICI Bank approved the merger of ICICI with ICICI Bank.

2002 :Moodys' assign higher than sovereign rating to ICICI.

Merger of ICICI Limited, ICICI Capital Sercvices Ltd and ICICI Personal Financial Services Limited with ICICI Bank.ICICI GROUP

ICICI Prudential :

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a premier financial powerhouse and Prudential plc, a leading international financial services group headquartered in the United Kingdom. ICICI Prudential was amongst the first private sector insurance companies to begin operations in December 2000 after receiving approval from Insurance Regulatory Development Authority (IRDA)

ICICI Prudential's equity base stands at Rs. 6.75 billion with ICICI Bank and Prudential plc holding 74% and 26% stake respectively. In the year ended March 31, 2004, the company had issued over 430,000 policies, for a total sum assured of over Rs 8,000 crore and premium income in excess of Rs. 980 crore. The company has a network of about 30,000 advisors; as well as 12 bancassurance tie-ups. Today the company is the #1 private life insurer in the country.

Savings Plans Protection Plans Child Plans Retirement Plans Investment Plans Group Plans Add-on Benefits ICICI Securities :

ICICI Securities Limited (i-SEC) is a wholly owned investment-banking subsidiary of ICICI Limited (ICICI). ICICI is the only non-Japanese Asian financial institution to be listed on the New York Stock Exchange. ICICI Securities was formed on 22nd feb 1993, when ICICI's Merchant Banking Division was spun off into a new company, ICICI Securities today is India's leading Investment Bank and one of the most significant players in the Indian capital markets. ICICI Securities Research Reports , Compendia, Updates, I-BEX and Sovereign Bond Index, have become industry standards, sought after by finance, business and reputed publications alike. The range of products offered by ICICI Securities includes:

Investment Banking -Mergers and Acquisitions, Equity, Bidding Fixed Income - Primary Dealership, Debt Research Equities - Lead Management, Underwriting, Syndication, Private Equity Placement, Sales, Trading, Broking, Sectoral and Company Research.

ICICI Securities continues to sustain a steady rate of growth by offering the most extensive range of services combined with unrivalled standards of professionalism.

ICICI Lombard :

ICICI Lombard General Insurance Company Limited is a 74:26 joint venture between ICICI Bank Limited, India's second largest bank and US$ 26 Billion Fairfax Financial Holdings Limited, diversified in financial services, 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 combines the forte of two of the most trusted names in the financial sector. ICICI Bank's strong brand equity, extensive distribution network and sound technological infrastructure to serve customer needs along with Lombard Canada's domain knowledge, product innovation and business processes based on international practices in the insurance business.

To the Indian consumer this means the security of strong parentage with access to a range of customised and innovative insurance solutions supported by internationally benchmarked service levels. Why ICICI Lombard ?We bring the following value proposition to our customers:

1. Risk Advisory Services

2. Simpler & Faster Documentation

3. Seven Days For Claims Settlement

4. Re-insurance

5. Our Team Growth

Comprehensive Product Range

ICICI Lombard has a major presence in the following insurance segments:

Personal solutions - Motor, Home, Personal Accident cover

Business solutions - Fire, Inland transit, Engineering, Performance Guarantee, Merchant cover, Marine and Aviation Hull, etc.

Travel and Health solutions Project solutions - Contractor's / Industrial / Erection All Risk, etc.

Liability solutions (Directors & Officer's Liability, Errors & Omissions, Product

Liability, Public Liability, Professional Indemnity)

Exports solutions (Export Import, Export Credit)

Rural solutions (Tractor, Weather Index, Janata Personal Accident)

ICICI Lombard has already introduced a slew of products and has emerged as a major player in the corporate and retail segments driven by a well-balanced portfolio. The Company has some of the largest industrial houses and companies representing diverse industries as its customers.

ICICI Venture :

ICICI Venture, incorporated in 1988, is the most experienced and largest private equity and venture fund management company in India with funds currently under management in excess of Rs.20 billion (USD 400 million).

Over the last 15 years, ICICI Venture has been successful in identifying trends well ahead of the curve; be it retail, media and entertainment, information technology, real estate or pharmaceuticals and biotechnology. During this period ICICI Venture launched and managed 8 funds with a corpus exceeding Rs. 20billion (USD 400 million). Each fund had a distinct investment theme and ICICI Venture today has some of the best known and managed companies in India in its portfolio. Herein ICICI Venture has followed the philosophy of being a multi-sector player ensuring an optimum balance of risk and return to its investors.

ICICI Venture has the distinction of managing a large number of exits in the country. With over 100 liquidity events, the organisation has reaped rich experience and is well positioned to handle IPOs, strategic sale and/or mergers.

ICICI Venture has a wide network of third party investors, which include domestic investors such as public sector banks, financial institutions and insurance companies. A significant portion of the fund's corpus is also from international development financial institutions and international funds.

The company has over 25 qualified professionals with experience across sectors and functions. The capabilities of the team, structure of the organisation, emphasis on value creation and performance evaluation matrices enable ICICI Venture to extract superior returns from its investments.

COMPANY PROFILEICICI Bank was originally promoted by the erstwhile ICICI Ltd and the erstwhile SCICI Ltd . It was incorporated as a company under the companies Act, 1956 On 5th January, 1994 and received the certificate of commencement of business on 24th February, 1994. It was granted a license to carry on banking business in India by the RBI vide its letter No.DBOD (AH) No.3085/03.02.24B/94 dated 17th May 1994. The operations of ICICI Bank are mainly governed by the provision of the banking regulation Act, 1934 as a Scheduled Bank vide Gazette of India notification dated 5th July 1994. ICICI Bank was founded with the objective of providing quality banking services using state-of-the-art of technology. ICICI Bank has placed great emphasis on the need for competitive, efficient and low cost financial intermediation. ICICI Bank conducts banking operations in an organized, systematic and operationally sound manner. Towards this end, it has set up a fully computerized environment with state-of-the-art technology at its offices and continuously upgrades its strong systems and procedures with special emphasis on risk management.

ICICI Bank is India's second-largest bank with total assets of about Rs.112,024 crore and a network of about 475 branches and offices and about 1790 ATMs. ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialized subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital, asset management and information technology. ICICI Bank's equity shares are listed in India on stock exchanges at Chennai, Delhi, Kolkata and Vadodara, the Stock Exchange, Mumbai and the National Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE).

ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution, and was its wholly owned subsidiary. ICICI's shareholding in ICICI Bank was reduced to 46% through a public offering of shares in India in fiscal 1998, an equity offering in the form of ADRs listed on the NYSE in fiscal 2000, ICICI Bank's acquisition of Bank of Madura Limited in an all-stock amalgamation in fiscal 2001, and secondary market sales by ICICI to institutional investors in fiscal 2001 and fiscal 2002. ICICI was formed in 1955 at the initiative of the World Bank, the Government of India and representatives of Indian industry. The principal objective was to create a development financial institution for providing medium-term and long-term project financing to Indian businesses. In the 1990s, ICICI transformed its business from a development financial institution offering only project finance to a diversified financial services group offering a wide variety of products and services, both directly and through a number of subsidiaries and affiliates like ICICI Bank. In 1999, ICICI become the first Indian company and the first bank or financial institution from non-Japan Asia to be listed on the NYSE.

After consideration of various corporate structuring alternatives in the context of the emerging competitive scenario in the Indian banking industry, and the move towards universal banking, the managements of ICICI and ICICI Bank formed the view that the merger of ICICI with ICICI Bank would be the optimal strategic alternative for both entities, and would create the optimal legal structure for the ICICI group's universal banking strategy. The merger would enhance value for ICICI shareholders through the merged entity's access to low-cost deposits, greater opportunities for earning fee-based income and the ability to participate in the payments system and provide transaction-banking services. The merger would enhance value for ICICI Bank shareholders through a large capital base and scale of operations, seamless access to ICICI's strong corporate relationships built up over five decades, entry into new business segments, higher market share in various business segments, particularly fee-based services, and access to the vast talent pool of ICICI and its subsidiaries. In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger of ICICI and two of its wholly owned retail finance subsidiaries, ICICI Personal Financial Services Limited and ICICI Capital Services Limited, with ICICI Bank. Shareholders of ICICI and ICICI BANK approved the merger in January 2002, by the High Court of Gujarat at Ahmedabad in March 2002, and by the High Court of Judicature at Mumbai and the Reserve Bank of India in April 2002. Consequent to the merger, the ICICI group's financing and banking operations, both wholesale and retail, have been integrated in a single entity.visioN of icici

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

Corporate and individuals

In line with its vision statement, ICICI has capitalized on market opportunities to stretch the borders of its business, and has evolved from a project finance institution to insurance, personal financial services, a financial supermarket providing end-to-investment banking and venture capital, end financial services to corporate and retail providing fulfillment to practically all the customers. Today, the ICICI Group offers financial needs of individuals and products and services in the areas of companies corporate banking and commercial banking.

MISSION OF ICICI

ICICI bank as an organization has been built on the principles of professionalism, ethics and financial expertise. The Bank believes that its existence and development are closely interlinked with its ability to serve both the corporate and retail customers. This belief has evolved into its corporate philosophy of growth, innovation and stability. The bank aims to provide the benefits of universal banking to its corporate and retail clients and its investors.

The goal is to ensure that dealing with ICICI Bank is safe, simple and efficient.

ICICI Bank attempts to pursue growth and innovation without compromising on its stability.

OBJECTIVES OF ICICI

1. To establish and carry on business of banking in any part of India or outside India.

2. To carry on the business of accepting, for the purpose of lending or investments, of deposits of money repayable on demand or otherwise and withdraw able by cheque, draft, order or otherwise.

3. To borrow, raise or take up money, lend or advance money with or without interest either upon or without security.

4. To draw, make, execute, issue, endorse, negotiate, accept, discount, buy, sell, collect and deal with bill of exchange, hundi, promissory notes, coupons, drafts, bills of lading, railway receipts, warrants, debentures, bonds, mortgage-backed securities, letter of credit or obligations, certificate, scripts and other instruments and securities whether transferable or negotiable or mercantile or not.

5. To grant and issue letter of credit, travelers cheque and circular notes, buy sell and deal in bullion and specie.

6. To receive all kinds of bonds, scripts or valuables on deposits or for safe custody or otherwise, provide safe deposit vaults, collect and transmit money, negotiable instruments and all securities.

7. To act as a foreign exchange dealer and to buy sell or otherwise deal in all kinds of foreign currencies.

8. To carry on activities of bill discounting, rediscounting bills, factoring, dealing in commercial papers, treasury bills, certificate of deposits and other financial instruments.

9. To act as an agent for any government or local authority or any other person or persons carrying on agency business.

10. To contract for public and private loans and advances and negotiate and issue the same.

11. To carry on and transact every kind of guarantee and indemnity business.

12. To undertake and execute trusts and the Administration of estates as executor or trustee.

13. To act as registrar and transfer agents and registrar to the issue, issue agents and paying agents.

14. To issue Debit or Credit cards to the customers or any other person.

Products and services offered by ICICI Bank

RETAIL PRODUCTS

1) Liability Products

ROAMING CURRENT ACCOUNT

A current account that goes along wherever your business takes you. Only roaming current account from ICICI Bank travels the distance with your business. With advanced technology features like multi-cheque facility and Anywhere Banking, the Roaming Current Account is designed to the business requirements. It also gives the freedom to choose a Quarterly Average Balance to suit business needs. You can access your account at over 475-networked branches across the country. Some of the other benefits are Multi City Cheque facility

Anywhere Banking Facility

Upcountry Cheque Collection

Pay Orders and Demand Drafts

Phone Banking Facility

Doorstep Banking Facility

Internet Banking Facility

Debit/ATM Card

Mobile Banking Facility

SAVINGS ACCOUNT

ICICI Bank offers a power packed savings account that offers a host of convenient features. ICICI Bank is one o the largest banking networks in the country with over 475 branches, 1790 ATMs and presence in, over 280 cities across the country. You can access your account from any of the ICICI Bank ATMs across the city or the country 24 hours a day, 7 days a week.

With ICICI Bank, you can access a vast majority of services through the ATM, phone and the Internet like ordering a chequebook, viewing your balance, etc. Some of the added benefits, which the customer can enjoy, are

Auto FD

Bill Payment

Investment Services

Free personalized chequebook

Salary Account

This account is for employees of companies, organization etc. this account can able to customize to suit individual requirements. Any company with more than 10 employees can enroll. With ICICI Bank Salary Accounts customers will enjoy the convenience of

Having the largest network o ATM at the command,

Free domestic debit card,

Free 24 hour Phone Banking

Free Internet Banking

REIMBURSEMENT ACCOUNT

The company can opt to disburse the expenses for travel, food etc through the reimbursement account. It can be simultaneously opened along with ICICI Bank Salary Accounts and linked to the same debit card.

WELCOME KIT

ICICI Bank Salary Accounts customers can have the facility of filling up the form and getting their chequebook and debit card instantly, across the counter.

FIXED DEPOSITS

ICICI Banks fixed deposit gives a combination of unbeatable features like Safety, Flexibility, Liquidity and Returns. Customers have to design a fixed deposit that provides him the flexibility to customize his investment plans, at competitive interest rates. Duration of the investment an also be decided by the account holder.

Pre-mature withdrawal in units of Rs1000 is also allowed. The balance amount earns the original rate of interest. No penalty is levied on premature withdrawal from a single deposit of less than Rs15 lakh. The withdrawn amount will earn interest for the period for which it is held with the bank. Customer can take loan against the fixed deposit. The loan will be available for 85% of the fixed deposit value, at a nominal rate above the fixed deposit.

Bank @ campus

Thanks to Bank @ campus, ICICI Banks Student Banking Service, Student can now look forward to the new face that bank have given to banking his/her computer monitor. Now student can surf the Net and access all the details of his/her account at the click of a mouse. No need to visit the bank branch at all. Some of the additional benefits are

Free personalized chequebook

Free 24 hours Phone Banking

Free ICICI Bank N-cash Debit card

Free transfer of funds into his/her account from any ICICI Bank Account.

Annual statement of accounts

Kid-e-bank ACCOUNT

The product teaches children banking and Internet transaction through an interactive online interface. It makes banking a pleasure and of course teaches your child to manage their personal finances.

2) Asset Products

CREDIT CARDS

ICICI Bank offers the most powerful co-branded card, the ICICI HPCL card with unmatched features and benefits. Besides this, they offer 3 types of credit cards to choose from Solid Gold (the global card), Sterling Silver (the family card), and True Blue (the value or money card). ICICI Bank credit cards also provide a host of other services like dial-a-draft, cash advance facility, Internet banking, travel benefits etc.

HOME LOANSICICI Bank offers you the most attractive interest rates, along with complete doorstep services. Loans ranging from Rs1 lakh to Rs1 crore are available, with repayment period upto 30 years. Each home loan comes with a free accident insurance cover. Moreover no guarantors are required, and there no charges for the part pre-payment.

PERSONAL LOANS

An all purpose customer friendly loan with no security, collateral or guarantors available from as low as Rs.20000 to Rs.5 lakh with a wide range of repayment tenures.

CAR LOANS

ICICI Bank Car Loans are tailor made to suit all customers needs. Customer can avail of finance up to 90% of the value of the car. Most attractive interest rates coupled with customized loan options and tenures ensure the best possible deals for all customers.

CONSUMER DURABLE LOANS

Customer can able to avail loans for durable products like color TVs, refrigerators, washing machines, microwave ovens, or music systems. A minimum loan of Rs.7000 repayable in convenient options of 6 to 36 monthly installments is offered.

LOAN AGAINST SECURITIES

Loans by the way of an overdraft facility against the pledge of demat securities provided by ICICI Bank. The best interest rates and loans of value added services come with this loan.

TWO WHEELER LOANS

ICICI Bank provides customized options to ensure that customer get the best value with great ease. Customer can able to avail upto 85% of finance.3) Investment Services

ICICI Direct.comThis offers investment and trading online in NSE and BSE to carry out delivery based or margin trading. Investments in IPOs, Mutual Funds, Futures and Options are available.

DEMAT ACCOUNT

A Demat account will ensure transaction in paperless shares, instantaneously in a safe and secure manner.

GOI RELIEF BONDSRBI tax relief bonds are just the right investment when thinking o tax-free income.

MUTUAL FUNDS

Mutual Funds that cater to every need, whatever the financial position, risk tolerance and return expectations.

4) Payroll and Benefit Management

ICICI Bank provides you a single window to outsource companys requirements o pension and payroll management through tie-ups with India Life and Cross Domain.

BUSINESS GROUPS OF ICICI BANK

ORGANISATIONAL EXCELLENCE GROUP (OEG)

This group will be responsible for institutionalization of quality initiatives, viz., Six-Sigma, ISO and Security certification, Intra-Group Service Level Agreements (i.e., SLAs between group companies of the merged entity). This Group will be responsible for building skills in the Six-Sigma area, managing vendors, tracking projects, reporting progress and value generated to the MD & CEO and replicating the successes across ICICI Bank as well as group companies. The respective Business Groups will directly initiate and manage their own internal projects and will provide periodic reports to the OEG on progress of these projects

INTERNATIONAL BANKING GROUP (IBG)

As global banks expand their presence in India and target local customers it becomes important for the bank to offer a complete value proposition its customer base that is globally competitive. The primary task of the IBG is to develop and implement the global components of the Universal Banking strategy. In addition to this, it seeks to pursue opportunities in related areas such as Business Process Outsourcing (BPO), the primary focus of which is to ensure that the bank could leverage the skills that it has built in these areas. It also has the added benefit of allowing the bank to benchmark the quality of services it offer to its own customers against global standards. IBG is in addition, responsible for managing ICICI Group's international alliances and relationships (excluding investor relationships).

TECHNOLOGY MANAGEMENT GROUP (TMG)

Technology Management Group would be the focal point for technology decisions for the Group. TMG will:

1. Be responsible for architecting the technology strategy for ICICI Group.

2. Guide the Business Groups in defining & scoping projects and selecting appropriate technology.

3. Identify and conceptualize ways in which new technology can be leveraged by the Business Groups. .

4. Act as a bridge between the technology function in Business Groups and the vendors / technology sources.

5. Lay down norms, standards and uniform policies in the area of technology and leverage economies of scale.

Each of the business groups across the bank will continue to be responsible for the identification of cutting edge technology solutions relevant for their respective businesses but will evaluate and decide on adoption of these technologies only in consultation with TMG. The respective Business Groups will also be responsible for project management and the delivery of projects. TMG will directly handle only those projects that are ICICI Group-wide initiatives such as EAI

DOMESTIC BANKING GROUP (DBG)

DBG comprises two key Groups, Retail Banking Group (RBG) and Wholesale Banking Group (WBG) and seeks to implement the Universal Banking strategy of the ICICI Group of companies with retail and wholesale customer bases respectively. While they pursue distinct customer segment strategies, the two Groups will work closely with each other, as a number of current and potential retail customers work with wholesale customers and wholesale customers leverage on the retail branches (where wholesale or SME divisions are not situated) and the leads from the retail business. In addition there are several current and potential customer bases, which have overlapping needs. In the case of the SME Group a more complex segmentation strategy is required since at the margin the distinction between a wholesale customer and a retail customer could become blurred.

RETAIL BANKING GROUP

The RBG has already demonstrated high growth capabilities in a variety of business dimensions such as bank deposits, Internet banking, Credit & Debit Cards, Auto financing and Mortgages and third party product distribution. The RBG is currently in rapid investment and growth mode.

Over the next few years this business will de-risk our balance sheet (by significantly diversifying our asset and liability base) and provide us with high quality earning streams while simultaneously helping the bank erect formidable and defensible entry barriers against strong domestic and international competitors.

The retail business is also poised to become the largest distribution powerhouse in the country, by distributing a range of products, viz., third-party products, mutual funds, insurance (life and non-life), pension products and bonds issued by the RBI and other entities. It is hence essential to have an integrated distribution architecture, which while meeting the business goals will deliver best in class service standards and thereby provide the customer with seamless and integrated channels. It is also critical to leverage the power of technology for customer reach and servicing.

One of the key drivers for the merger has been to achieve economies of scale and scope for RBG by seeking to integrate many retail businesses in more than one Group Company, into a consistent customer oriented architecture. However, we also nurse aspirations of being leaders in each and every product segment that we operate without any loss of the momentum that has already been built-up.

As a consequence, a more pragmatic approach has been adopted while designing the current structure, while building a platform for steady migration to a completely customer centric structure The following current and potential customers is part of RBG:a) Individuals, HUFs, proprietors

(b) Societies, associations, club, including educational, religious, welfare, charitable

Associations etc. (c) Provident funds with corpus under Rs. 10 bn

(d) All trusts (excluding mutual funds)

( e) Partnerships and corporates, both with net worth less than Rs. 5 bn

(f) Retail linked SMEs such as all dealerships of vehicles and consumer durables and

Builders

The RBG comprises the following functional groups:

(A) RETAIL ASSET PRODUCTS GROUP

(B) RETAIL CHANNELS AND LIABILITIES GROUP

(C) RETAIL OPERATIONS GROUP AND RURAL & MICRO BANKING GROUP

(D) RETAIL STRATEGY AND NEW PRODUCTS GROUP

(E) RETAIL CHANNEL INFRASTRUCTURE GROUP

(F) RETAIL TECHNOLOGY GROUP

Retail Asset Product Group (RAPG)

The RAPG is responsible for the entire retail asset portfolio of ICICI Bank. It is accountable for P&L, marketing & sales promotion, market share, growth, credit quality, asset product development (including for NRI in coordination with IBG), third party managed retail assets channel, asset products cross sell targets and relevant 5MB lending. This Group also manages sales, collection agencies, CPA network, and dedicated channels of retail assets like DSAs, dealerships, distributors, builders, merchants, and manufacturer relationships. The Head of Cards is responsible for cards related products for other Groups like 5MB, NRI etc. Mortgage business focuses on builder financing home equity, reality funding and personal loans against property. This is essential to achieve its growth plans for the mainstream, retail mortgage business. The mortgage business manages relationship with all builders.

(a) Auto Finance

(b) Commercial Vehicles, Construction Equipment Financing, Farm Equipments, Consumer Durable Financing, OE Financing

(c) Cards (to include credit, debit, smart cards, other payment solutions and merchant acquiring business)

(d) Mortgage Finance

(e) Personal loans/loans against securities (LAS)

(f) Two wheeler Finance

(g) Collection, Credit and Risk

RAPG -Risk Division initiates new policies for all products, approve product variants within preapproved limits, allocate approval authorities within the ambit of mother policy and prepare and submit MIS reports. RCAG approves polices for all products, allocate authorization limits, and carry out business review along with the Head ofRAPG.

Retail Channels and Liabilities Group (RCLG)One of the key objectives of the merger is to ensure that we create a truly customer-centric organization. The various channels of ICICI Bank and ICICI Caps is integrated under this Group and will function as a single integrated network. To achieve customer centricity, it is intended that the channels will essentially focus on three functions:

(a) Transaction Banking

(b) Sales and

( c) Customer Service

Transaction Banking will involve all the day to day banking unctions pf the channels. Sales will include, sale o liability products, all third party products and cross sell of asset products. Customer servicing will involve servicing of Domestic and NRI ustomers by handling queries, complaints and requirements of customers across all retail products. This Group will also manage distribution of depository accounts and Bonds. RCLG is responsible for the targets of liabilities, Third-Party Products (TPPs), cross-sell, service levels, channel cost and channel migration. It would also be responsible for providing the required support to IBG for domestic sales, in branch service to NRI customers and Private Banking for NRIs to facilitate meeting NRI targets.

The Customer Service Group is responsible for handling and quick resolution of customer service issues across all retail products. This Group will also be responsible for recommending specific process and systems improvements which have an impact on customer service, carrying out customer satisfaction studies, managing service quality audits etc.

Retail Operations & Rural and Micro Bankine Group: (ROG & RMBG)

ROG is responsible for the following:

(a) Support business growth by managing the back office functions for all the channels, liability and asset product Group

(b) Consolidate and centralize as many activities as possible, so as to derive economies of scale and reduce operating costs

( c) Take off as much of operating load from the channels as possible and enable the channel to concentrate more on sales and service.

(d) Provide interface to the channels for all the service quality related issues

The Retail Operations Group is organized as follows:

(a) Banking including NRI services

(b) Mortgages

( c) Other Retail Assets

(d) Bonds & Depository accounts

(e) Projects - For the implementation of Quality improvement, Cost reduction, consolidation of all retail operations and Vendor management.RMBG is responsible for the following:

(a) Developing cost effective technology solutions for banking products and services in rural and semiurban areas

(b) Formation of self-help groups (of women, traders etc.) and progressive farmers groups, including providing micro credit to them.

(c) Partner with NGGs on a selective basis to enlarge ICICI Bank's reach and operations without investment on infrastructure

(d) Collaborate with SIG

(e) Undertake other projects to enhance the quality of life of the rural poor.

Retail Banking Strategy and New Products Group: (RSPG)

RSPG is responsible for supporting the ED on the Retail Banking Strategy. This Group will constantly look for new customer and product segments, structure the appropriate product offerings and bundle, product offerings to customer groups. This Group will scan the market to identify unfulfilled customer needs and devise strategies and products to leverage the business opportunities. The Bank's retail liability products including retail bonds is developed by this Group (including for NRIs in coordination with IBG).

Retail Channel Infrastructure Group (RCIG)

RCIG is responsible for setting up retail channel assets (i.e.) branches, extension counters, ATMs, call centres, retail offices, retail operations processing centres, kiosks etc), upkeep & servicing of these assets, currency management, network & connectivity, look-and-feel, security management for these assets and constantly look out for enhancing the reliability of the retail channel assets.

For ATM channel this Group is responsible for its complete management, including the quality of service delivered and maximizing revenue generation from this channel. This Group will also be responsible for setting up and managing the connectivity of the various physical & electronic channels and inducting technological innovations into the channel. The networking department looks after the work related to connectivity, WAN, LAN, ISA, Projects and network security.

Retail Technology Group (RTG)

The RTG will fill the need for a dedicated technology group. This group is the focal point (on a bankwide basis) for the core banking technology platform (Finnacle), all other retail applications and management of all the associated databases (including all modifications thereto). RTG is responsible for all issues relating to these platforms to all the business within REG as well as to COTG. All the businesses will also be required to consult with RTG before effecting any modifications in any linked systems not already being directly managed by RTG.

WHOLESALE BANKING GROUP (WBG)WBG primarily represents a rapidly maturing part of the business of our bank and is expected to perform the role of a "cash-cow" through an efficient management of its capital resources and the provision of high and stable profit streams. This is expected to provide high quality earnings to the balance sheet without necessarily contributing to a growth in overall balance sheet size - in fact perhaps even a slow reduction in direct asset exposures. It is also expected to provide "air-cover" during the early phases of several new and high growth group-wide businesses.

Within WBG the only groups that are expected to see a rapid build up of asset base at a similar pace are the SME and Agri-Business Groups for on-balance sheet assets and the Global Markets Group for offbalance sheet assets. The other groups will focus on building deep and enduring corporate relationships and the flawless delivery of world-class banking solutions through the Product and Technology Group and the Treasury. The Structured Product and Portfolio Management Group will manage the portfolio of assets that are acquired, as a part of the relationship management process. In order to do this effectively, it will seek to build world-class credit evaluation and portfolio management and repackaging capabilities.

The WBG comprises the following specific groups:

(a) Corporate Solutions Group (CSG) and Government Solutions Group (GSG) (b) Product and Technology Group (COTG)

(c) Structured Products & Portfolio Management Group (SPPMG)

(d) Treasury

(e) Small and Medium Enterprises Group (SMEG) and Agri-Business Group (ABG) (f) Special Purpose Groups.Corporate Solutions Group (CSG) and Government Solutions Group (GSG)

In order to provide focus to customer segments and service them efficiently, two separate Solutions Groups, viz.; CSG and GSG was created. These Groups were created through the amalgamation of the present relationship and parts of the credit groups in ICICI and ICICI Bank and have primary responsibility for pursuing all the business opportunities that arise from large clients. In the case of CSG, the clientele is defined as those corporate entities whose net worth in the most recently completed quarter ended March 31st equals or exceeds RS.500 mn and for the GSG the clientele is Central/State Governments, PSUs (both state and central), Government Bodies and Municipalities.

CSG's responsibilities include the provision of total solutions even to all the corporate clients whose assets are being managed by PFG and the SAMG. However, while in the case of all other clients the total Profit and Loss is the responsibility of the CSG, in the case of PFG and SAMG clients, the Net Interest Income and all other credit related incomes (specifically, Front-end income, Project Advisory Fees, Trade Finance Income and Bank Guarantee. Income) and the capital consumed on account of these transactions belong to PFG and SAMG. CSG is responsible for providing complete solutions coverage and for all other fee incomes ITom these clients.Similarly, while retail product delivery and servicing is the direct responsibility of RBG, the corporate or the government relationship would continue to be managed primarily by CSG and GSG. CSG and GSG would assume total volume targets on a group-wide basis but would not receive any Profit and Loss credit to offset any RAROC (Risk Adjusted Return on Capital) shortfalls for their portfolios.

The focus of the CSG and GSG Zones is to manage the risk capital assigned and deliver maximum possible return on the capital. All profits and losses arising from all the possible businesses from these corporate entities (assets, liabilities and services) is to ascribed solely to the relevant CSG or GSG Zone.

Product & Technology Group (PTG)

One of the stated objectives of the bank is to provide flawless delivery of world-class banking solutions. This is clearly possible only when all the activities from product design to delivery mechanism are integrated on an end-to-end basis. Further, use of the most suitable technology architecture becomes the core part of this activity. To ensure effective implementation of the above capabilities, the Product and Technology Group (PTG) has been formed.

This Group combines all the product design and delivery capability on an end-to-end basis. It also directly manages the web-channels of product delivery including the website 'ICICI Bank e-business.'

PTG is also the sole interface for businesses in so far as any technology issues are concerned. Within each product division ofPTG there is a Customer Service Officers (CSOs) who interfaces not only with existing clients but the entire sales, marketing and client handling process which is managed directly by the Solutions Groups. PTG is responsible for delivering on cost and volume targets with the help of the various Solutions Groups. While the branch managers would report to the relevant ZM, they is directly responsible to the PTG on the following areas:

(a) All branch processes and strict adherence to them (b) All reporting and compliance

(b) All reporting and compliance

(c) The complete branch infrastructure

(d) All customer service issues

All IT platforms (hardware as well as software) being used across WBG, PFG and SAMG is managed by PTG (either by deploying its own staff members or with the help of out-sourced partners). PFG and SAMG and to the extent that RBG customers use these systems & functions in the capacity of users of these platforms.

PTG is organized into the following sub-groups:

(a) Cash Management Services Operations

(b) Trade Finance Operations headed

( c) General Banking Operations headed

(d) Web Channel Operations and CRM headed

(e) Product & Technology Group headed

(f) Operations and Systems Compliance and Control (OSCC) (head to be announced). Head of this business will functionally report to Head of Mid Office Group in the Corporate Centre.

Structured Products & Portfolio Management Group (SPPMG)This Group focuses on all the dimensions of credit risk being assumed by the WBG. The overall credit quality of the WBG portfolio as well as the RAROC on the capital consumed by credit risk is the direct responsibility of SPPMG. While discharging this overall responsibility, SPPMG will play the following key roles:

(a) Structured Products Advisory to the Solutions groups as well as advice in areas such' as collateral structuring and loan covenants.(b) Portfolio Management including sell-down and acquisition of selected assets from the market to rebalance the portfolio through the various Groups focused on financial institutions - Financial Institutions Group, GSG and SME.(c) Drafting of all policies in relation to decision making within the WBG (including organization of various decision-making committees, Investment Policy, Loan Policy and Delegation of Financial Powers of the ED) in consultation with various business groups inside and outside the WBG as well as the Chief Financial Officer (CFO)(d) Direct participation in transaction level decision making at the zonal level along with the Solutions Groups at each stage starting from the preparation of credit proposals, quality control of these proposals, presence at each of the credit decision making committees and interfacing with the relevant MOGs to ensure that appropriate process controls are in place.(e) Product development work in the area of credit derivative~Qd securitisation and development of markets for these products jointly with the Financial Institutions Group and Global Markets Group of the Treasury.(f) Work with Risk, Compliance and Audit Group to advance credit analysis quality as well as develop an independent point of view on issues relating to risk-return trade-offs within the credit portfolio

In addition to assisting CSG and GSG in making more informed credit decisions, it directly seeks to add value by improving the risk-adjusted return on the credit portfolio itself through credit enhancement, sell-downs and portfolio rebalancing if necessary through direct acquisition of client assets through the secondary markets and the use of suitable hedging instruments.

Treasury

The Treasury comprises of the following groups:

(a) Balance Sheet Management Group (BSMG)

(b) Global Markets Group (GMG)

(c) Corporate Markets Advisory Group (CMAG)

(d) Treasury Research Group (TRG)

(e) Capital Markets Services Group (CMSG) comprising the Capital Markets Division (CMD) and the Securities Processing Division (SPD)

(f) Financial Institutions Group (FIG)

BSMG: primarily manages the liquidity and market risk on the balance sheet of ICICI Bank - it is assigned risk capital and seeks to maximize the returns on that risk capital while keeping within internal as well as regulatory limits. While the Performance Management Unit of the Finance Group develops the transfer pricing policy of ICICI Bank, the BSMG manages the inputs to the bank-wide calculators on a day-to-day basis.

GMG: minimizes the amount of capital at risk in the market but seek to deliver highly stable quarterly returns by focussing on very broad based market making and arbitrage strategies. As one of its primary responsibilities it assists SPPMG in its market-related tasks. The GMG comprises three groups:a) Cash, Derivatives and International Fixed income and Equity products and Forex derivatives

b) Cash, Derivatives and International Commodities

c) Forex spot & forward

CMAG: will be the interface of the Solutions Groups to treasury products and will also help in the delivery of treasury capabilities to clients directly. The CMAG will work only with volume targets leaving P&L, pricing and marketing responsibilities to the Solutions groups. The Corporate-FX group currently operating with the Bank's treasury will form a part of the CMAG.

TRG: assigns trained researchers to each of the Treasury Groups with direct accountability of the assignee only to the respective Treasury Group to which the researcher has been assigned. The TRG coordinator plays an oversight role and ensures that there is proper sharing of knowledge and ideas between researchers assigned to various Treasury Groups.

CMSG: seeks to maximize returns from providing services to the capital markets community comprising essentially brokers, foreign institutional investors and back office services to mutual funds, corporates and financial institutions. The Capital Markets Services Group (CMSG) comprises the Securities Processing Division (SPD) and the Capital Markets Division (CMD).

SPD: The Custodial Services department functions as SPD in the treasury Group. The range of services includes safe keeping, settlements and corporate action/event related activities in respect of clients' holdings, fund/portfolio accounting including benefit collection and proxy execution. Going forward, this division would target all fee-earning opportunities in the securities processing business by capitalizing on its existing expertise and expanding the range of services offered. This division would also catalyze current account mobilization, float income and forex remittance businesses for the bank.

CMD: The Capital Markets Division is responsible for extracting value from our relationships with the capital market players including issuers and stock exchange members. The thrust area is to exploit all fee income opportunities, while minimizing the risk capital employed in the business. The services offered by the division includes clearing accounts, settlement accounts, pool accounts and collecting banking operations. This division is responsible for getting the valuable fee and float income ITom the capital market participants.

FIG: is the Solutions group for large financial institutions (including all mutual funds) and seeks to provide a complete range of solutions to them. It seeks to maximize returns on risk capital assigned to them. It also undertakes syndication and debt capital market activities and actively assists SPPMG in achieving its sell-down and portfolio rebalancing targets.

Small and Medium Enterprises Group (SMEG) and Agri-Business Group (ABG)These groups are expected to grow rapidly in terms of assets under. Given the unique nature of these groups, the focus here is, on developing and implementing unique credit risk management strategies and portfolio management strategies. SPPMG assists these groups in the development process at the transaction level and will directly manage their portfolio of assets as an integral part of its portfolio management responsibilities.

SMEG has the SME Account Managers placed within select retail branches and follows a regional structure along the lines of CSG and GSG. SMEG operates from the Corporate Banking Divisions but wherever necessary set up separate SME Divisions, which are optimized to service large groups of its clients. The branch personnel dedicated for SME operations does not have sales responsibilities. A separate sales team will handle sales.

Special Purpose Groups

In addition to these business groups there are the following special purpose groups:

a) Social Initiatives Group (SIG)

b) Knowledge Management Group (including Library); and

c) ICICI Research Centre (IRC)

PROJECT FINANCE GROUP (PFG)Project finance has historically been the mainstay ofICICI's activities. Going forward also, investments are envisaged both in infrastructure and the manufacturing sectors, which are expected to translate into significant business opportunities for the ICICI group. The existing focused group in the infrastructure area has developed expertise, which can be leveraged for funding as well as government related policy advisory assignments. The funding would be for new/expansion projects by private sector participants as well as public sector units (PSUs) in the infrastructure sector.

In addition, this Group has the responsibility for funding Manufacturing Projects. Going forward, the PFG will function as a credit-product group and will take limited exposures in carefully select infrastructure and large manufacturing projects structured to ensure easy syndication and sell-down ability. For all this work, it draws on its internal capabilities as well as the expertise of the SPPMG and the Treasury wherever necessary.

PFG (and SAMG) has complete responsibility for Net Interest Income and the all other credit related incomes (specifically, Front-end income, Project Advisory Fees, Trade Finance Income and Bank Guarantee Income) and the capital consumed on account of these exposures until they are transferred to WBG.

PFG is organized as follows:

(a) Infrastructure Projects Group (IPG)

(b) Manufacturing Projects Group including Oil & Gas (MPG) (c) Strategy and Analytics Group (SAG)

(d) Technology Lines Group (TLG)

(e) Shipping Finance Group (SFG)

SAG supports the respective Project Finance Groups with strategy and appropriate Economic, Industry and Sectoral analytics. This Group advises the ED on strategy. TLG will implement various technology development and commercialization programmes on behalf of international agencies viz. World Bank, USAID and ADB.

SPECIAL ASSET MANAGEMENT GROUP (SAMG)

Indian corporates in traditional manufacturing businesses are trying to come to terms with the new competitive reality through a process of restructuring and repositioning. While the group believe that this process enables the industry and economy to emerge stronger and that the stress in certain industry segments is only temporary, it has nevertheless resulted in deterioration in asset quality in the financial system.

In this context and in the run up to the transformation to a "Universal Bank", the Special Asset Management Group (SAMG) was created to focus exclusively on stress cases, with the objective of recovering and restoring value. This group has achieved remarkable successes in severe stress cases by arresting the fall in values and ~reating a platform where these values can be realized.

Taking this initiative forward, the group needs to evolve an organizational structure to build more specialized skills in recovery, settlements, negotiating, proactive restructuring in complex stress cases, handling multiple lenders across multiple jurisdictions and continually looking at stress assets management from a macro perspective. Further, it is imperative to find quick, localised solutions for small and medium cases, where the speed on recovery would be of paramount importance and locational proximity to client may be a key differentiating factor.

SAMG focuses on recovering value by hard negotiations, aggressive recovery actions, innovative restructuring and through creative solutions to issues that have defied conventional approaches. It is organised such that both the restructuring and the recovery options are given the required focus. Apart from this the strategy is anchored on different approaches for dealing with assets of large and small sizes and also on the different client profiles. The SAMG organisation structure facilitates an entrepreneurial approach to build delivery accountability.

CORPORATE CENTRE

Finance

The Finance function is organised as follows:

1. Accounting & Reporting Group

2. Secretarial & COG

3. Middle Office Group

4. Taxation Group

5. Performance, Information & Value Management Group (PIVG)

6. Taxation Group

7. Risk, Compliance and Audit Group (RCAG)

The RCAG Group is responsible for assessment, management and mitigation of risk for ICICI Bank. This group is organised as follows:

(a) Credit Risk Rating & Industry Analysis

(b) Credit Policies, RBI Inspection and Credit Audit

(c) Risk Analytics

(d) Internal Audit for WBG, RBG, IBG & Corporate Centre and coordination with the Audit Committee

(e) Subsidiaries Audit

(t) Retail Risk

Human Resources Management Group (HRMG)The HRM Group is responsible for formulating and implementing appropriate policies and processes that support the achievement of the business objectives. This group organized as follows:

1. Business HR Groups

2. Functional Groups

Corporate Brand & Communications Groups

CBCG is organized as follows:

(a) Corporate Brand and IBG marketing

(b) WBG marketing headed

(c) Corporate Communication

This Group owns the Corporate Brand and is responsible for its salience including appointing and managing agencies, creative and communication strategy, marketing and media plan, and media buying. The respective business groups, draw upon the CBCG and work in coordination with this Group for all branding actions, while independently designing their product communication. CBCG is also responsible for standards and norms with respect to the Brand presentation and usage. CBCG also performs the marketing function for select businesses and the person allocated functionally reports to the CBCG Head and for business interface with the Head of the respective businesses (IBG & WBG). The Communications Group is responsible for managing all the media interface and public relations.

Legal Group (LG)

this Group is responsible or all legal matters for the company. This group also consider as the advisory group.

Facilities Management and Administration Group: (FMG)

This Group is responsible for management of lCICI Bank's property, travel, management of amenities, upkeep, maintenance and repair work of buildings and equipment, telecommunication, security, dispatch, common filing, purchase of stationery and managing the reception.

RETAIL CHANNELS AND LIABILITIES GROUP

SAG SALARY ACCOUNT GROUP

PBG - PRIVATE BANKING GROUP

SAD SAVINGS AND DEPOSITS

TASC TRUST ASSOCIATION, SOCIETIES AND CLUBS

INS INVESTMENTS SERVICES

SALARY ACCOUNT GROUPPRIVATE BANKING:

SAVINGS AND DEPOSIT ACCOUNTS

TRUST ASSOCIATION, SOCIETY AND CLUB INVESTMENTS AND SERVICES

Functions of Sales Manager and Relationship Manager

1. Execution of sales plan corporate zone map, corporate combing through BDE and student trainees

2. RM to meet at least 12 corporate per day

3. Generate adequate leads through corporate residential area combing GTMY & tele-calling

4. Coach account opening team- minimum of 20k for account opening cheque.

5. Generate reference and EFD through student trainee channel- ATMs Walk ins

6. Gather data Base- Outbound team will follow-up for lead generation

7. Ensuring more sales per call training BDE and Student Trainees

8. Have a balance team of Student Trainees Make up for shortfall of FOS

9. Coordination with branch staff for EFD & RD

10. Update of BDE in web page

11. Ensuring timely reporting of DSR, Weekly report

12. Maintain an account of Welcome Kits13. Maintain Daily Run Rate

Functions of Business Development Executive

1. Ensuring proper documentation of customer and genuineness of the customers.

2. Responsible for branch target

3. Implementation of GTMY, corporate residential area combing & coordination with the call centre

4. Passing of correct information to the customer at the time of picking up application

5. Coach student trainees on product and process

6. Follow thumb rule 10 corporate call of BDE - at least 3 Productive

7. LOF 100% achievement before 20th November

8. Timely submission of reports and feed back

9. Make more sales per call cover the immediate catchments

10. Maintain DSR

11. Collect reference in each and every sales calls

STRATEGY OF ICICI

The liberalization and growth of Indian economy provides ICICI Bank with significant opportunities to provide superior financial products and services to the corporate and the retail sector. ICICI Banks objective is to enhance its position as Indias premier financial service provider. The key elements of ICICI Banks business strategy are:

1. Focus on quality growth opportunities by:

Building a strong retail franchise;

Maintaining and enhancing strength in corporate banking;

Building international presence.

2. Emphasize conservative risk management practices and enhanced asset quality.

3. Use technology for competitive advantage;

4. Attract and retain talented professionals; and

5. Leverage on synergies from merger of ICICI and two of its subsidiaries.

Design Of The Study

Project TITLE: a study on market potential of icicis salary account in bangalore cityOBJECTIVE OF STUDYScope of the study:

This study is aimed towards the market potential of corporate salary account provided by the ICICI Bank ltd. The study is contender towards the value-added feature of salary account product of ICICI Bank. The study doesnt deal with the other financial product offered by bank only products offer by retail channel group. Hence the study is limited to the above

Place of research Bangalore city.

Research Methodology

Since the research was on the salary account product, for that the sample has been taken out from the different industrial area in Bangalore city. The sample has been categorized based on the geographical and demographical characters. As we know salary account product is meant for working class people, so sample has been taken from working class people only. Before starting the research work, information from all the banks with regard to salary account product has been collected. After getting this secondary information questionnaire has been prepared for approaching the working class people. At the same time some of the web sites have been used to get the additional information regarding salary account product.

Research analysis and findiing1. tOTAL SALARY UPLOAD ACCORDING TO AREA WISE

INFERENCE: the Electronic City and White Field contributes 40% of the total salary up-load in the Bangalore City, so they become the crucial places to be concentrated.

2. BREAK UP OF BANKS PROVIDING cORPORATE SALARY ACCOUNT IN DIFFERENT INDUSTRIAL AREAS

3. SATISFACTION LEVEL WITH EXISTING BANK

INFERENCE: 79% of the companies are satisfied with the services provided by their existing banker where as the 21% of the companies are not satisfied, which will be the most crucial customers which can be materialized.

4. CAUSES FOR DISSATISFACTION

INFERENCE: The major cause of dissatisfaction is the after sale service. Therefore feedback from the corporates regarding the service provided to them on the periodic basis necessary.

5. AWARENESS OF ICICIS CORPORATE SALARY ACCOUNT

INFERENCES: Awareness is very low in Jigani and Bhomsandra industrial area. These areas have got some good companies like TATA ADVANCED MATERLIALS, OTIS, and CROMPTON GREAVES which has to be tapped.

6. POTENTIALITY OF ROUTING EMPLOYEE SALARY THROUGH ICICIS CORPORATE SALARY ACCOUNT

INFERENCES: The companies which want to definitely route their salary through ICICIS corporate salary account contribute 5% and companies which probably want to route to rote their salary through ICICIS salary account contribute 17% , these companies will be the potential market for ICICI.

CONCLUSION AND SUGESTIONS:1. Since Whitefield and Electronic city are identified as crucial areas in terms of total salary upload; ICICI bank has to concentrate maximum on new acquisitions to compete with the existing ABN AMRO and SBI banks in order to penetrate the market. 2. Out of 10 industrial areas Citibank leads other banks in 4 industrial areas in terms of acquiring large customer base. Hence ICICI bank should keep continuous track of fresh recruitments and come up with competitive offerings and features to attract these fresh employees to the companies in these areas. 3. Since 21% of the companies are not satisfied with other banks, these will be the most crucial customers for ICICI. Hence ICICI has to clearly understand and address the needs of these corporate to enhance its market share.4. It would be feasible to set up an ATM counter in Jigani Industrial area due to the following reasons:

a. It has a considerable total salary upload of 1.5 crores per month.

b. Only Corp bank has setup an ATM over there, and most of the corporate are not satisfied with its services.

c. There is no branch of any bank nearby Jigani and surrounding 10Kms.

d. There are some good companies like Tata Advanced materials, OTIS, Crompton Greaves, which contribute more than 80% of salary upload.5. The major cause of dissatisfaction is poor after sale service. Therefore ICICI bank has to get periodic feedback from the corporate and provide quality service.6. Awareness is very low in Jigani and Bommasandra industrial area.

Therefore:

Promotional activities like presentations for employers and employees should be conducted in the potential organizations.

Seminars should be organized where in all HR and Finance Managers of potential corporate should be invited and awareness on e-age banking should be done.7. Since 57% of the corporate are unsure to route their salary accounts through ICICI bank, ICICI has to keep a continuous track to convince and convert them to potential customers.

BIBLIOGRAPHY

Marketing research: By, Hawkins & Tull

Marketing Management: By, Philip Kotler

www.icicibank.com

www.ibank.com

www.google.com

Magazines

Product Literature Brochures

Pamphlets

Presentations Material

Questionnaire

Dear Sir/Madam

The objective of this research is to know the market potential for corporate salary A/c in Bangalore. The information provided by you will be kept strictly confidential and used for the purpose of project only. I will be grateful if you oblige for the same.

1. a) Name: _________________________________________

b) Name of the Company: ___________________________

c) Designation: ____________________________________

d) Department: ____________________________________

e) Contact No: ____________________________________

2. No of employees working in your company ______________

3. Average salary paid for a month

a) >5000

b) 10000 to 15000

15000 to 20000

d) 20000 to 25000

c) >25000

4. Procedure of payoff in your company is through

a) Single cheque

b) Multi cheque

c) Cash

d) Debit advice to bank e) Corporate salary A/c

5. If your payoff is through salary A/c please specify the bank

a) ICICI

b) Citi Bank

c) HDFC

d) ING Vysya

e) HSBC

f) SBI

g) Canara h) Corp Bank g) Stan chat

6. Are your employees satisfied with the services provided by your current banker

a) Yes

b) No

* If Not Please tick the following:

a. High min balance to be maintained

b. Restriction on withdrawals

c. Poor service

d. Hidden charges

e. Others specify____________________

7. Rate the facilities/services of your current banker

a) Excellent

b) Very Good

c) Neither good nor bad

d) Not satisfactory

8. Are you aware of ICICIs salary A/c features

a) Yes

b) No

*If yes, how did you come to know?

a) Through Sales Manager/ Relationship Manager

b) Through Business Development Executive c) Through Internet

d) Others Please specify: __________________________

9. Are you interested in routing your employees salary through ICICI salary A/c

a) Definitely

b) Probably

c) Cant say

d) Probably Not

e) Definitely not

THANK YOU FOR YOUR KIND CO-OPERATION

ICICI SECURITIES

ICICI PRUDENTIAL

ICICI VENTURE

ICICI LOMBARD

REGIONAL HEAD

REGIONAL SALES MANAGER

REGIONAL MANAGER BRANCH-1

REGIONAL MANAGER BRANCH-2

REGIONAL MANAGER BRANCH-3

REGIONAL HEAD SALES

REGIONAL MANAGER SAG

REGIONAL MANAGER PBG

REGIONAL MANAGER SAD

REGIONAL MANAGER INS

REGIONAL SALES MANAGER

SALES MANAGER

RELATION-

-SHIP MANAGER

RELATION-

-SHIP MANAGER

RELATION-

-SHIP MANAGER

BDE

BDE

BDE

BDE

REGIONAL SALES MANAGER- PBG

FOUR RELATION

SHIP MANAGERS IN BLORE

FOUR RELATION

SHIP MANAGERS

OUTSIDE BLORE

SALES MANAGER

SIX

BUSINESS DEVELOPMENT EXECUTIVES

REGIONAL SALES MANAGER SDA

16 SALES MGRS IN KARNATAKA

CALL CENTER

SALES EXECUTIVES

FEED ON STREET

REGIONAL SALES MANAGER TASC

9 SALES MGRS IN KARNATAKA

BUSSINESS DEVELOPMENT

EXECUTIVES

RELATIONSHIP MANAGER

REGIONAL SALES MANAGER INS

RELATIONSHIP MANAGER

SALES EXECUTIVESS

RELATIONSHIP MANAGER

RELATIONSHIP MANAGER

SALES EXECUTIVESS

SALES EXECUTIVESS

Total Salary Upload

0

10000000

20000000

30000000

40000000

50000000

60000000

1

M.G.Road

Bhomsandra

Hoskote

Jigani

Richmond

Yelhankha

Infantry road

Electronic City

Whitefield

Yelhankha

20%

40%

40%

Canara Bank

Citibank

SBI