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Laws Governing Banking & Insurance

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ICICI Bank is India's second-largest bank. The Bank has a network of about 573branches and extension counters and over 2,000 ATMs. ICICI Bank was originallypromoted in 1994 by ICICI Limited, an Indian financial institution, and was itswholly-owned subsidiary.

ICICI was formed in 1955 at the initiative of the World Bank, the Government of India and representatives of Indian industry. The objective was to create a

development financial institution for providing medium-term and long-term projectfinancing to Indian businesses.

In the 1990s, ICICI transformed its business from a development financialinstitution offering only project finance to a diversified financial services groupoffering a wide variety of products and services, both directly and through anumber of subsidiaries and affiliates like ICICI Bank.

In 1999, ICICI become the first Indian company and the first bank or financialinstitution from non-Japan Asia to be listed on the NYSE. In 2001, ICICI bank acquired Bank of Madura Limited.

ICICI Bank set up its international banking group in fiscal 2002 to cater to thecross border needs of clients and leverage on its domestic banking strengths tooffer products internationally. ICICI Bank currently has subsidiaries in the UnitedKingdom, Canada and Russia, branches in Singapore and Bahrain andrepresentative offices in the United States, China, United Arab Emirates,Bangladesh and South Africa.

Today, ICICI Bank offers a wide range of banking products and financial servicesto corporate and retail customers through a variety of delivery channels andthrough its specialised subsidiaries and affiliates in the areas of investmentbanking, life and non-life insurance, venture capital and asset management.


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

BOARD OF DIRECTORS N. Vaghul, Chairman K. V. Kamath, Managing Director & CEO Sridar Iyengar L. N. Mittal Narendra Murkumbi

Anupam Puri Arun Ramanathan M. K. Sharma P. M. Sinha Marti G. Subrahmanyam T. S. Vijayan V. Prem Watsa Kalpana Morparia, Joint Managing Director (Up to May 31, 2007) Chanda D. Kochhar, Joint Managing Director & CFO Nachiket Mor, Deputy Managing Director (Up to October 18, 2007) V. Vaidyanathan, Executive Director Madhabi Puri Buch, Executive Director (w.e.f. June 1, 2007) Sonjoy Chatterjee, Executive Director (w.e.f. October 22, 2007)


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ICICI, then the Industrial Credit and Investment Corporation of India, was setup at a public limited company on January 5, 1995, by the Government of INDIA ,with support from the World bank, to promote industrial development in India.Initially, the World Bank had considered the International Finance Corporation(IFC) for providing foreign exchange assistance to industrial concerns in India.

However, the Indian Government felt that it was not proper to route foreigninvestments into the country through a Foreign Organization. Consequently, a

private owned and operated development bank to finance expansion andmodernization of pr ivate industry in the form of ICICI was launched.

The main basic objectives were to:Assist in creation, expansion and modernization of enterprise;Encourage and promote the participation of private capital, both internal andexternal ;Take up the ownership of industrial investment ;Expand the investment markets.

ICICIs scope of operations was lat er extended to include joint, public andcooperative sector projects. The initial authorized share capital of ICICI was 50rupees mn.

The major institutional shareholders were the UNIT TRUST OF INDIA (UTI),the LIFE INSURANCE CORPORATION OF INDIA (LIC) and the GENERALINSURANCE CORPORATION OF INDIA (GIC) and its subsidiaries.

The equity of the corporation was supplemented by borrowings from theGovernment of India, the World Bank, the Development Loan Fund (now mergedwith the Agency for International Development), Kreditanstalt fir Wiederaufbau(an agency for Government of Germany), the UK government and the IndustrialDevelopment Bank of India (IDBI).


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On May 5, 2008, Mr. K. V. Kamath, MD&CEO was awarded the prestigious Padma Bhushan by the President of India


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Second largest Bank in India is now formally in place . RBI has given approval forthe reverse merger of ICICI Ltd with its banking arm ICICI Bank. ICICI Bank withRs 1 lakh crore asset base bank is second only to State Bank of India, which is wellover Rs 3 lakh crore in size. RBI also cleared the merger of two ICICI subsidiaries,ICICI Personal Financial Services and ICICI Capital Services with ICICI Bank.

The merger is effective from the appointed dated of March 30, 02, and the swapratio has been fixed at two ICICI shares for one ICICI Bank share.Reserve Bank, approval is subject to the following conditions:

(i) Compliance with Reserve RequirementsThe ICICI Bank Ltd. would comply with the Cash Reserve Requirements (underSection 42 of the Reserve Bank of India Act, 1934) and Statutory LiquidityReserve Requirements (under Section 24 of the Banking Regulation Act, 1949) asapplicable to banks on the net demand and time liabilities of the bank, inclusive of the liabilities pertaining to ICICI Ltd. from the date of merger. Consequently,ICICI Bank Ltd. would have to comply with the CRR/SLR computed accordinglyand with reference to the position of Net Demand and Time Liabilities as requiredunder existing instructions.

(ii) Other Prudential NormsICICI Bank Ltd. will continue to comply with all prudential requirements,guidelines and other instructions as applicable to banks concerning capitaladequacy, asset classification, income recognition and provisioning, issued by theReserve Bank from time to time on the entire portfolio of assets and liabilities of the bank after the merger.

(iii) Conditions relating to Swap RatioAs the proposed merger is between a banking company and a financial institution,

all matters connected with shareholding including the swap ratio, will be governedby the provisions of Companies Act, 1956, as provided. In case of any disputes, thelegal provisions in the Companies Act and the decision of the Courts would apply.

(iv) Appointment of Directors


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The bank should ensure compliance with Section 20 of the Banking RegulationAct, 1949, concerning granting of loans to the companies in which directors of such companies are also directors. In respect of loans granted by ICICI Ltd. tocompanies having common directors, while it will not be legally necessary forICICI Bank Ltd. to recall the loans already granted to such companies after themerger, it will not be open to the bank to grant any fresh loans and advances tosuch companies after merger. The prohibition will include any renewal orenhancement of existing loan facilities. The restriction contained in Section 20 of the Act ibid, does not make any distinction between professional directors andother directors and would apply to all directors.

(v) Priority Sector LendingConsidering that the advances of ICICI Ltd. were not subject to the requirementapplicable to banks in respect of priority sector lending, the bank would, after

merger, maintain an additional 10 per cent over and above the requirement of 40per cent, i.e., a total of 50 per cent of the net bank credit on the residual portion of the bank's advances. This additional 10 per cent by way of priority sector advanceswill apply until such time as the aggregate priority sector advances reaches a levelof 40 per cent of the total net bank credit of the bank. The Reserve Banks existinginstructions on sub-targets under priority sector lending and eligibility of certaintypes of investments/funds for reckoning as priority sector advances would applyto the bank.

(vi) Equity Exposure Ceiling of 5%The investments of ICICI Ltd. acquired by way of project finance as on the date of merger would be kept outside the exposure ceiling of 5 per cent of advancestowards exposure to equity and equity linked instruments for a period of five yearssince these investments need to be continued to avoid any adverse effect on theviability or expansion of the project. The bank should, however, mark to marketthe above instruments and provide for any loss in their value in the mannerprescribed for the investments of the bank. Any incremental accretion to the aboveproject-finance category of equity investment will be reckoned within the 5 percent ceiling for equity exposure for the bank.

(vii) Investments in Other CompaniesThe bank should ensure that its investments in any of the companies in whichICICI Ltd. had investments prior to the merger are in compliance with Section 19(2) of Banking Regulation Act, 1949, prohibiting holding of equity in excess of 30


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per cent of the paid-up share capital of the company concerned or 30 per cent of itsown paid-up share capital and reserves, whichever is less.

(viii) Subsidiaries(a) While taking over the subsidiaries of ICICI Ltd. after merger, the bank shouldensure that the activities of the subsidiaries comply with the requirements of permissible activities to be undertaken by a bank under Section 6 of the BankingRegulation Act, 1949 and Section 19 (1) of the Act ibid.

(b) The take over of certain subsidiaries presently owned by ICICI Ltd. by ICICIBank Ltd. will be subject to approval, if necessary, by other regulatory agencies,viz., IRDA, SEBI, NHB, etc.

(ix) Preference Share Capital

Section 12 of the Banking Regulation Act, 1949 requires that capital of a bankingcompany shall consist of ordinary shares only (except preference share issuedbefore 1944). The inclusion of preference share capital of Rs. 350 crore (350shares of Rs.1 crore each issued by ICICI Ltd. prior to merger), in the capitalstructure of the bank after merger is, therefore, subject to the exemption from theapplication of the above provision of Banking Regulation Act, 1949, granted bythe Central Government in terms of Section 53 of the Act ibid for a period of fiveyears.

x) Valuation and Certification of the Assets of ICICI LtdICICI Bank Ltd. should ensure that fair valuation of the assets of the ICICI Ltd. iscarried out by the statutory auditors to its satisfaction and that requiredprovisioning requirements are duly carried out in the books of ICICI Ltd. beforethe accounts are merged. Certificates from statutory auditors should be obtained inthis regard and kept on record.


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1) Accepting deposits

2) Lending loans3) Investments4) Insurance5) Dematerialization services6) Money transfers7) Wealth management8) Cards9) Loans

10)

Internet banking11) Mobile banking12) Tele banking13) ATM services


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Steps to Login

You would receive two pin mailers from ICICI Bank

A) Internet Banking User id,B) Login password and Transaction password.

Check that the pin mailers arrive in a sealed condition, else please contactour 24 hour Customer Care Centre. Key in the user id and password on thewebsite and press LOGIN.

After you request for a new password, the system would prompt for change

in passwords. Your password must be at least 8 characters. We recommend you to change both transaction and login password. Passwords are case sensitive. Your internet banking account is locked in case of 3 wrong tries on

entering user id and password. Always log out of ICICIBANK.COM when you have finished your

activities.

ELIGIBILITY

This service is available to the following type of ICICI Bank account holders: Savings Account holders Credit Card holders Demat Account holders Loan Account holders


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No online registration required to pay your bills.

Why be in line, when you can be ONLINE?

Tie-up with all major shopping sites

A product for every need

Recharge your Prepaid Mobile Cards conveniently

Smart Decisions and Easy Investing

There are no sources in the current document.


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Foreseeing Indian economy back on a high-growth trajectory in the coming

months, ICICI Bank is looking at expanding its fund-generation profile andrevenue streams to capitalise on the forthcoming opportunities.

"Looking ahead, we see favourable prospects for the India n economy. . . India hasweathered the global storm with a high degree of resilience and we expect theIndian economy to return to a robust growth path ahead of other economies that areexperiencing recessionary conditions," ICICI Bank managing director and chief executive officer Chanda Kochhar has said.

"As we prepare ourselves for the next phase of growth, we will work on further

diversifying our funding profile and revenue streams," Kochhar said in hermessage to the country's largest private sector bank's shareholders in its annualreport for 2008-09.

Since 2007, as the global and Indian economic environment has changed rapidly,the bank has focused on a conscious strategy of capital conservation, risk containment and efficiency improvement.

"We have healthy capital adequacy, sound liquidity and improved costefficiencies," she added.

The bank's chairman K V Kamath also expressed confidence that 'the Indianeconomy's robust fundamentals and domestic growth drivers will impart it theresilience to emerge stronger from this period'.

"I believe the economic recovery, some signs of which are already visible, willgather momentum in the coming months and in due course see India returning to ahigh growth trajectory," he noted in his message to shareholders.

Kamath, who handed over the role of MD and CEO to Kochhar last month, furthersaid, "The last year has been an exceptionally challenging year for the globaleconomy and financial sector.

"India, while fundamentally in a much stronger position, has also experienced theimpact of these events as they were transmitted through the trade and capitalchannels."


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Kochhar said that the against the backdrop of an imminent recovery in Indianeconomy, "The ICICI Group sees before it a wide opportunity spectrum: increasinghousehold incomes and consumption in both rural and urban India; significantindustrial and infrastructure investment potential; and the vast Indian diasporaspanning the globe.

"We, as a multi specialist financial services group, are well positioned to capitaliseon these opportunities. We will continue to participate in India's growth by meetingthe financial services needs of the Indian economy."

The annual report also quoted ICICI Bank's executive director Sonjoy Chatterjee assaying, "Indian economy has strong fundamentals and will provide robust growthopportunities for industry."

"The Indian corporate sector has demonstrated its ability to withstand the globaleconomic challenges and we will extend full support to the industry as it reorientsstrategies in this environment. We will focus on deepening our client relationshipsto enhance the diversity and resilience of our revenue streams," Chatterjee said.

Kamath further said that ICICI Bank was able to meet the challenge posed by thedevelopments in global economy 'due to its strong capital position and thefundamental strengths of its franchise.'

"We have demonstrated our success over a long period of time. In fiscal 1985, we

had a networth of Rs 1.75 billion, assets of about Rs 21 billion and profits of Rs0.36 billion.

In fiscal 2009, we had a networth of about Rs 500 billion, assets of about Rs 3,800billion and profits of Rs 37.58 billion. This represents over 20 per centcompounded annual growth over a 24-year period.

"Over the past few years, we have built a strong franchise in the Indian corporateand retail segments, the non-resident Indian segment, and the wider deposit marketin certain countries. . .We believe that the strategy that we have followed and thefranchise that we have built provide a strong foundation for our growth in the yearsto come," Kochhar said.

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