financial performance of icici bank ltd

8/2/2019 Financial Performance of Icici Bank Ltd

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CONTAINS

Christ College- Pondicherry University 1


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LIST OF CHARTS & FIGUR

Christ College- Pondicherry University

Chart 1 Structure of Banking System in India

Chart 2 Diversification of ICICI Bank

Chart 3 The different Logos of ICICI Bank

Chart 4 Shareholding Pattern

Chart 5 Mickinsey 7S Model

Chart 6Organization Structure

Chart 7

Sources of Finance

Figure 1 Average Cost of Funds EmployedPercentage

Figure 2 Status of Interest paid & DepositsReceived

Figure 3 Credit Deposit Ratio

Figure 4 Status of Loans, Advances & Deposits

Figure 5 Credit Capacity Ratio

Figure 6 Advances & Equity Capital

Figure 7 Status of Advances & Shareholders Fund

Figure 8Credit Net worth Ratio

Figure 9 Status of Advances & CL & Provision

Figure 10 Credit & Provision Ratio

Figure 11 Status of Deposits & Credits

Figure 12 Credit Ratio

Figure 13 Status of Deposits & Equity

Figure 14 Deposit to Capital Ratio

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Figure 15 Investment to Deposit Ratio

Figure 16 Status of Investment & Deposits

Figure 17 Deposits & Shareholders Fund

Figure 18 Deposits to Net worth Ratio

Figure 19 Status of cash Balance & Deposits

Figure 20 Cash Balance to total Deposit Ratio

Figure 21 Status of Current Assets & Liabilities

Figure 22 Current Ratio

Figure 23 Status of Profit & Shareholders Fund

Figure 24 Return on Investment Ratio

Figure 25 Status of Operating exp & Income

Figure 26 Operating Ratio

Figure 27 Status of Operating Income &ShareholdersFund

Figure 28 Operating Ratio

Figure 29 Status of Income & Assets

Figure 30 Income to Asset Ratio

Figure 31 Status of Net Profit & Total Income

Figure 32 Net Profit Ratio

Figure 33 Status of Net Profit & Net Assets

Figure 34 Net Profit to Net Asset Ratio

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LIST OF TABLES

Table 1 Credit Rating of ICICI Bank

Table 2 Shareholding Pattern

Table 3 Average Cost of Funds Employed

Table 4 Credit Deposit Ratio

Table 5 Credit Capital Ratio

Table 6 Credit Net worth Ratio

Table 7 Credit to Current liabilities & Provisions

Table 8 Deposit Credit Ratio

Table 9 Deposit Capital Ratio

Table 10 Investment to Deposit Ratio

Table 11 Deposits to Net worth Ratio

Table 12 Cash Balance to Total Deposit Ratio

Table 13 Current Ratio

Table 14 Return on Investment Ratio

Table 15 Operating Overheads to Total IncomeRatio

Table 16 Operating Results Ratio

Table 17 Income to Asset Ratio

Table 18 Net Profit Ratio

Table 19 Net Profit to Net Asset Ratio



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EXECUTIVE SUMMARY

A study on Financial Performance of ICICI Bank limited is undertaken in order

to know the financial performance and position of the bank and to know the strength &

weakness of the bank & to assess the profitability of the bank.

Ratio analysis is the tools used as a yardstick for evaluating the financial condition and

performance of the business firm.



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INTRODUCTION

Finance:

Finance is one of the major elements, which activates the overall growth of

economy; Finance is the lifeblood of economic activity. A well-knit financial system

directly contributes to the growth of the economy. An efficient financial system calls

for the effective performance of financial institutions, financial instruments and

financial markets.

Importance of finance

Finance is regarded as the lifeblood of a business enterprise; this is because

in the modern money-oriented economy finance is one of the basic foundations of all

kinds of economy activities. It is the master key, which provides access to all the

sources for being employed in manufacturing and merchandising activities. It has

rightly been said that business needs money to make more money. However, it is also

true that money begets more money. Only when it is properly managed. Hence,

efficient management of every business enterprise is closely linked with efficient

management of its finances.

Scope of finance

The firm secures capital it needs and employs finance activities, which

generate return on invested capital. The business firm mainly engages in activities to

perform the functions of finance, thus it requires a number of real assets (plant,

machines, furniture) and financial asset (shares and bonds) to receive return on its



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investments and distributes returns. These processes of raising funds are known

respectively as financing, Investment and dividend decisions.

Retained earnings are another undistributed returns on equity capital; they are,

therefore, rightfully a part of equity capital. The retention of earnings can be

considered as a form of raising new capital. If a company distributes all earnings to

shareholders, then, it can reacquire new capital from the same sources by issuing new

shares.

The finance function of raising and using money although has a significant

effect on other function, yet it needs not necessarily limit or constraint the general

running of the business. A company in a tight financial position will, of course, give

more weight to financial considerations.

Finance functions: -

There are four important finance functions:

1. Investment decision

Investment decision or capital budgeting is the oldest area of the recent

thinking in finance. Its one very significant aspect is the risk of measuring the

prospective profitability of new investments. Future benefits are difficult to measure

and cannot be predicted with certainly, Because of the uncertain future. Capital



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budgeting decision involves risk. Investment proposals should therefore, be evaluated

in terms of both expected return and risk.

2. Financing decision

Financing decision is the 2nd important function to be performed by the

financial manager. Broadly, he must decide when, where and how to acquire funds to

meet the firms investment needs. The central issue before him is to determine the

proportion of equity and debt. The mix of debt and equity is known as the firms

capital structure.

3. Dividend decision

The dividend policy should be determined in terms of its impact on the

shareholders value. The optimum dividend policy is one, which maximizes the market

value of the firms shares. Thus, if shareholders are not indifferent to the firms

dividend policy, the financial manager must determine the optimum dividend payout

ratio.

4. Liquidity decision

Investment in current asset affects firms profitability, liquidity and risk. A

conflict exists between profitability and liquidity while managing the current assets. It

may become illiquid. But it could lose profitability, as idle current assets would not

earn any thing. Thus a proper trade off must be achieved between profitability and

liquidity.



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Financial services: -

Many financial institutions giving services to the public these are: -

1. Bank

2. Co-operative societies

3. Financial institutions

4. Private Banks

5. Foreign Banks

6. Nationalized Bank

7. Non-Banking financial institutions.

Meaning of Financial Statements:

The term financial statement refers to the statements, which are prepared the

business concern or banks at the end of the each financial year, i.e. which start from 1 st

April of current year to 31st March of next year.

The statements are

(a) INCOME STATEMENTS or PROFIT & LOSS ACCOUNTS which is

prepared in order to know whether the concern has earned profits or sustained

loss during the specific financial period.

(b) POSITION STATEMENT or BALANCE SHEET with the respective

schedules forming a part of Balance sheet, which is prepared by the concern in

order to know their financial position. The Financial Auditors and accountants,

Board Of Directors (BOD), usually prepare these.



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To these statements are added the statements of retained earnings and statements

such as Funds Flow Statements (FFS); Cash Flow Statements (CFS); Ratio analysis, in

order to know the positions regarding Profitability, Liquidity and solvency.

Nature of Financial Statements:

Financial statements are prepared for the purpose of presenting a periodical

review or report by the management and deal with state of investment in business and

result achieved during the period under view. They reflect a combination of recorded

facts, accounting conventions and personal judgments. From this it is clear that three

things affect financial statements i.e.

1. Recorded facts.

2. Accounting conventions.

3. Personal judgments.

Only those facts, which are recorded in the business books, will be reflected in the

financial statements.

The following points reflect truly the nature of financial statements of business

entities:

(i) These are reports or summarized reviews about the performance, achievements and

weaknesses of the concern.

(ii) These are prepared at the end of the accounting period so that various parties may

take decisions of their future actions in respect of the relationship with the concerns.

(iii) The reliability of financial statements depends on the reliability of the accounting

data. These statements cannot be said to be true and fair representatives of the strengths



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or profitability of the concern if there are numerous frauds and defalcations in the

accounts.

(iv) The figures in the financial statements are a combination of recorded facts. There

may be certain developments and factors which may be very important for the business

are not taken into account as these are not recorded in the routine of accounting.

Moreover, fixed assets are recorded at historical value without taking into consideration

the change in their values due to price level fluctuations.

(v) These statements are prepared as per accounting concepts and conventions.

(vi) These statements are influenced by the personal judgment of the accountant though

he is expected to be more objective in his approach. These judgments may relate to

valuation of inventory, depreciation of fixed assets and while making distinction

between capital and revenue.

Meaning of Analysis of Financial Statements:

Analysis is the process of critically examining in detail accounting information

given in the financial statements. For the purpose of analysis, individual items are

studied; their interrelationship with other related figures established, the data is

sometimes rearranged to have better understanding of the information with help of

different techniques or tools for the purpose. Analyzing financial statements is a process

of evaluating relationship between component parts of financial statements to obtain a



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better understanding of firms position and performance. In the words ofMyer,

Financial statements analysis is largely a study of relationship among the various

financial factors in a business as disclosed in a series of statements. The analysis of

financial statements thus refer tot the treatment of the information contained in the

financial statements in a way so as to afford a full diagnosis of the profitability and

financial position of the firm concerned. For this purpose financial statements are

classified methodically, analyzed and compared with the figures of previous years or

other similar firms.

Objectives of Financial Analysis:

Financial Analysis is helpful in assessing the financial position and profitability

of a concern. This is done through comparison by ratios for the same concern over a

period of years; or for one concern against another; or for one concern against the

industry as a whole (Inter-firm comparison); or for one concern against the

predetermined standards; or for one department of a concern against other departments

of the same concern (Intra-firm comparison). Accounting ratios calculated for a number

of years show the trend of the change of position, i.e., whether the trend I upward or

downward or static. The ascertainment of trend helps us in making estimates for the

future.

Keeping in view the importance of accounting ratios the accountant should

calculate the ratios in appropriate form, as early as possible, for presentation to the

management for managerial control.

The main objectives of analysis of financial statements are to assess:

(i) The present and future earning capacity or profitability of the concern,



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(ii) The operational efficiency of the concern as a whole and of its various parts or

departments,

(iii) The short term and long term solvency of the term for the benefit of the debenture

holders and trade creditors,

(iv) The comparative study in regard to one firm with another firm or one department

with another department,

(v) The possibility of developments in the future by making forecast and preparing

budgets,

(vi) The financial stability of a business concern,

(vii) The real meaning and significance of financial data, and

(viii)The long-term liquidity of its funds.

Types of Financial Statements analysis:

Different types of financial statements analysis can be made on the basis of:

(i) The nature of the analyst and the material used by him,

(ii) The objective of the analysis, and

(iii) The modus operandi of the analysis.

PROJECT TITLE:

FINANCIAL PERFORMANCE OF ICICI BANK LIMITED.

This research has been conducted to know and understand the business

operations of ICICI Bank. An attempt is made to study the financial performance and

the factors influencing the financial aspects. The researcher also extended his scope to



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analyze the liquidity position, strength and weaknesses of the bank in handling the

financial operations. For a systematic study, tables and graphs were drawn wherever

required.

Basically the scope of the study was limited to Bangalore Regional office of

ICICI Bank. But consolidated financial reports of all the divisions in India were

considered for analysis. Inter branch comparison was not possible. Limitations of past

records, time constraints etc. have their impact on the study.

FINDINGS:

The heavy competitions lead to increase in the operating expenses. The banks

earning capacity is moving upward as the bank implemented an aggressive financial

policy by keeping its short-term liquidity position under threat. It continuously expands

its net assets that help to earn more returns. Current ratio of the bank has to be brought

nearer to the standard i.e. 2:1. It is clear from the study that the ICICI Bank focuses

more on maximum utilization of its funds so as to contribute much towards profits there

by increasing the value for shareholders.

RECOMMENDATION:

Bank has to go for branch expansion process in the vast Indian rural market by

providing much ATM facilities in Taluk head quarters. Effective service to the

customers is the vital factors for success in the industry, which the bank has to

facilitate.



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CONCLUSION:

The over all performance of ICICI Bank is satisfactory, company utilizes its

available funds effectively. The aggressiveness shown by the bank in its financial

operations helped it to maximize its earnings.

2. INTRODUCTION

2. 1) INDUSTRY PROFILE

The organized banking system in India is broadly divided into three categories,

i.e. the central bank known as the Reserve bank of India, the commercial banks and the

Co-operative banks. The reserve bank of India is the supreme monetary and banking



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authority in the country and has the responsibility to control the banking system in

country. It is known as the RESERVE BANK as it keeps the reserve of all

commercial banks.

Banking Regulation Act of India, 1949 defines banking as accepting, for the

purpose of lending or investment of deposits of money from the public, repayable on

demand or otherwise and withdrawal by cheques, draft, and order.

Most of the activities a bank performs are derived from the above definition. In

addition, Banks are allowed to perform certain activities, which are ancillary to this

business of accepting deposits and lending. A banks relationship with the public

therefore revives around accepting deposits and lending money. Another activity, which

is assuming increasing importance, is transfer of money both domestic and foreign

from one place to another. This activity is generally known as remittance business in

banking parlance. The so-called forex (foreign exchange) business is largely a part of

remittance. It involves the buying and selling of foreign currencies.

The law governing banking Activities in India is called Negotiable

Instruments Act 1881. The banking activities can be classifies as:

1. Accepting Deposits from public /others (deposits)

2. Lending money to public (Loans)

3. Transferring money from one place to another (Remittance)

4. Acting as trustees

5. Acting as intermediaries

6. Keeping valuable in safe custody

7. Collection business

8. Government Business



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Commercial banks have been in existence for many decades. After1969

commercial banks are broadly classified into nationalized or public sector and private

sector banks. The state bank of India and associate banks along with another 20 banks

are the public sector banks. The private sector banks include a number of Indian

scheduled banks, which have not been nationalized, and branches of foreign banks

operating in India.

The Regional Rural banks (RRBs) came into existence since the Middle of

1970s with the specific objective of providing credit and deposit facilities particularly

to the small and marginal farmers, agricultural laborers and artisans and the small

entrepreneurs.

Primary Co-operative credit societies or banks were originally set up in villages

to promote thrift and saving of the farmers and to meet their credit needs for cultivation.

The central or district co-operative banks above them state co-operative banks were

established. The funds of RBI meant for agricultural sector actually pass through the

State co-operative banks and central co-operative banks. These have now spread to the

urban areas.

Under the RBI Act 1934, banks were classified as scheduled banks and non-

scheduled banks. The scheduled banks are those, which are entered in the second

schedule of RBI Act, 1934.they are banks, which have paid up capital and reserves of

an aggregate value of not less than 5 lakhs and which satisfy RBI that their affairs are

carried out in the interests of the depositors. All commercial banks Indian and foreign,

regional rural banks and state co-operative banks are scheduled banks. Non-scheduled

banks are those, which have not been including in the second schedule of RBI Act1934.



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The present banking scenario in the country looks extremely promising. For the

past few years most of the banks have posted very good results quarter after quarter and

are displaying their ability for high growth. Banks such as the union bank of India, vijay

bank, Indian Overseas bank and UCO banks have come out with their initial public

offering.

Banks are classified into several types based on the functions they

perform.

1. Commercial Bank.

2. Investment or industrial Banks.

3. Exchange Banks.

4. Co-operative Banks.

5. Land Development Banks.

6. Savings Banks.

7. Central Banks.

1). COMMERCIAL BANKS

Commercial banks perform all the business transaction of a typical bank.

Commercial Banks accept three types of deposits, Like Savings Bank Deposit, Fixed

Deposit and Current Deposit. They accept these deposit, which are payable on demand

or in short notice. As such they lend or invest only for short duration. They funds for

short-term needs of trade of commerce.

2). INVESTMENT OR INDUSTRIAL BANK

Investment Banks are those banks, which provide funds on long term for

industries. These Banks have specialized in providing long term loans to industries with

a view to buy plant of machinery. The investment Banks obtain funds through share



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capital, Debentures and long term deposits from the public. They float bonds for the

sake of mobilizing funds to provide funds for big industries corporations.

These banks also under write or issue new shares of debentures of industrial concerns.

3). EXCHANGE BANKS

Exchange Banks are known as foreign Banks or foreign exchange Banks. The

foreign exchange banks provide exchange for imports trade. Their main function is to

make international payment through purchased sake of exchange bills.

4). CO-OPERATIVE BANKS

Co-operative Banks are promoted to meet the banking requirements of

consumers. They are established not only in the urban areas but also in the rural areas.

In the rural areas these banks supply finances to agriculture, while in the urban areas

they provide finance to consumer goods.

5). LAND MORTGAGE BANKS

Whenever agriculturist require investment loans, they have to approach land

development Banks. Where loans are given on long-term basis. They provide loans on

the security of the land.

6). SAVINGS BANKS

Savings Banks are specialized financial institutions established to mobilize

savings from the people. The primary object of the commercial Banks is to promote

thrift among the low and middle-income groups. The Banks also offer interest on these

deposits.



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7). CENTRAL BANKS.

Central Bank in an apex Bank in the country, which keeps the entire banking

system unified, controlled and regulated. In fact, the central bank is the Bank, which

formulates the monetary policy. It regulates the notice issue. In India, the Reserve Bank

of India is the central Bank of India.

STRUCTURE OF BANKING SYSTEM IN INDIA

C o - o p e r

B a n k s

S t a t e B a n

&

i t s a s s o

O t h e r N a

B a n k s

R e g i o n a

B a n k s

P u b l i c S

B a n k s

P r i v a t e S

B a n k s

I n d i a n

B a n k s

F o r e i g

B a n k s

C o m m e

B a n k s

S c h e d u

B a n k s

C o - o p e r

B a n k s

C o m m e

B a n k s

N o n - S c h

B a n k s

R B I

Chart-1

2.2) COMPANY PROFILE

2.2. 1.HISTORY OF ICICI BANK

ICICI Bank was originally promoted by the erstwhile ICICI Limited and SCICI

Limited. The Industrial credit and investment corporation of India Limited (ICICI) was



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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 business. ICICI Bank was originally promoted in 1994 by ICICI Limited and

was its wholly owned subsidiary. It was incorporated as a company under the

companies Act, 1956 in January 1994 and received the certificate of commencement of

business in February 1994.

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. Bank of Madura Limited was

merged with ICICI Bank with effect from 10th March 2001. 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, Back Bay Reclamation was inaugurated.



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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.

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

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) Indias first professional credit rating agency.

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



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1987: ICICI signed a loan agreement for Sterling Pound 10 million with

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

projects in India.

1988: ICICI promotes TDICI - Indias 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 Bank.

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

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.

1998: Introduced the new logo symbolizing a common corporate identity for the ICICI

Group.

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

durables.

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

NYSE.

ICICI Bank announces merger with Bank of Madura.



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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:

ICICI becomes the first Indian Company to list on the NYSE through an issue of

American Depositary Shares.

2003

-Launches micro-finance programmes

-ICICI One source deploys new recruitment system

-Sets up NRI advisory service

-Singapore govt. offloads 2-cr shares of ICICI Bank

-Bank chief K V Kamath appointed head of finance panel for river linking project

-Launches 'Give2India' to facilitate donations by NRIs

-Comes out with a bond issue of Rs. 400 crore

-Installs Telugu language ATMs in Hyderabad

-Launches 'ICICI Bank Pure Gold'-certified and tamper proof 24-carat pure gold coins

in Chennai

-Collects over Rs. 1,200-cr via first bond issue



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-Obtains 'excellence in retail banking' award instituted by the Singapore-based Asian

Bankers Journal

-ICICI Bank-led combine gets approval for Nationwide Multi Commodity Exchange

(NMCE) set up

-Bio Serve takes up about 3,000 sq.ft. space at the ICICI Knowledge Park to set up a

contract research lab

-Sets up integrated currency management center in Pune.

-Rama Newsprint & Papers Ltd allots 5632129 no. Of Equity shares to ICICI Bank Ltd

on conversion right exercised by them

-HDFC, ICICI buy 33-pc stake in Hindustan Coca-Cola Beverages, the Indian bottling

subsidiary of the Atlanta-based carbonated soft drinks giant Coca-Cola

-Reliance Info forges alliance with ICICI for bill receivables

-Ties up with Employees Provident Fund Organization to distribute pension across the

country

-Ties up with TeNet for micro-banking

-Starts 12-hours banking services

-ICICI Bank restructures organizational structure

-Acquires the Credit Card Division of Tata Finance

-Air India ropes in ICICI Bank as authorized dealers for hedging



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-ICICI Bank along with others set up Rs. 800-cr "India Advantage Fund"

-Records Rs. 8000-cr securitisation during '02-03

-Enters deal with Pramati Technologies to deploy Pramati Server Software

-Tops NPA recovery list among domestic lenders

-Unveils Pure Gold coins in Karnataka

-Decides to scrap '97 series deep discount bonds

-Obtains approval to set up Overseas Banking Units (OBU)

-Communication ministry engages ICICI Bank, IIT to study viability of telecom firms

-Unveils NRI remittance product in Canada

-ICICI Bank, Amway launch co-branded international credit card

-Picks up 25% shares in NCDEX (National Commodities & Derivatives Exchange)

-ICICI directs introduces tax-free Savings Bond '03 online

-Videsh Sanchar Nigam Limited (VSNL) and ICICI Bank have announced a tie-up for

the distribution of Tata Indicom`s dial-up Internet services

-ICICI Bank offers rail ticket booking facility to its customers

-Buys Apple Credit's 30-pc stake in Transamerica Apple Distribution Finance Ltd.

(TADFL)

-Takes over 100-pc of TADFL



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-Outgoing ICICI Bank Joint Managing Director Mr. H N Sinor becomes new chief

executive and secretary of Indian Banks Association (IBA)

-ICICI Bank, HDFC Bank tie up with Indian Railway Catering and Tourism

Corporation (IRCTC) for online rail bookings

-ICICI Bank, DaimlerChrysler team up for new finance scheme

-Gets Insurance Regulatory Development Authority (IRDA) nod for India Advantage

Fund

-Announces VRS, the first for the new generation private sector banks

-Bags DM Review World Class Solution Award 2003

-Enters into an institutional agreement with Dubai Bank wherein ICICI Bank would be

the principal correspondent bank of Dubai Bank in India

-Discontinues the contract with Hollywood Superstar Amitabh Bachchan since it finds

him too expensive

-Embarks on market making securities instruments

-Global Finance Magazine awards ICICI Bank as the "Best consumer internet Bank in

India"

-ICICI Bank empanelled for JNPT's Electronic Data Interchange (EDI) project

-Signs option contract with BHEL

-ICICI Bank's 1350 employees opt for VRS



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-Textile sector leads ICICI Bank's NPA

-Approves 7.3 million options to its employees

-Birla Tyres ties up with ICICI bank to offer Rs. 2 lakh life insurance benefit to the

truck drivers on the purchase of every pair of tyres

-Inaugurates its first Offshore Banking Unit (OBU) at SEEPZ Special Economic Zone,

Mumbai

-ICICI implements NCR solution (Cheque Mark PDC Module) for post dated cheques

-ICICI Bank picks up Timesofmoney.com's e-filing service

-ICICI Bank acquires 17.75% stake in NDTV

-Launches 'Instra Transfer', an NRI remittance product, which will enable NRIs in the

Gulf to transfer funds to India within two hours

-Acquires 36,000,000 shares amounting to 12.65% of Himachal Futuristic

Communications Ltd (HFCL)

-Divests 0.31% shares in Federal Bank

-Converts part of HFCL loan into equity shares giving 12.65% stake in the company

-Inaugurates Singapore branch

-Decides to take the service of Hollywood Superstar Amitabh Bachchan (Big B) on

purely case-to-case basis



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-ICICI Bank in alliance with Federation of Automobile Dealers Association (FADA)

unveils credit card for vendors to dealers and opens a business-to-business (B2B)

section in FADA's Web site

-West Coast signs agreement to acquire ICICI's 34 percent stake in Rama Newsprint &

Papers Ltd. (RNPL)

-Investmentz.com forges alliance with ICICI Bank for offering payment gateway to its

customers for real-time transfer of funds

-Banker Magazine of UK confers its 'Best Multi-Channel Strategy 2003' and Bank of

the Year 2003' awards to ICICI Bank

-Instanex Skindia depository receipts index increases the index percentage of market

capitalization used for ICICI Bank to 95 per cent from 75 per cent

-ICICI Bank in association with the Federation of Automobile Dealers Association

(FADA) unveils a credit card for vendors to dealers and opens a business-to-business

(B2B) section in FADA's Web site

-Issues notice to Ponni Sugars (Orissa) Ltd. to take possession of the Balangir Sugar

Mill

- Allotment 287774 equity shares of face value of Rs.10/- each on October 13, 2003

under the Employee Stock Option Scheme.

-ICICI bank gets Banker magazine awards for the year

-Crisil assigns highest ratings to instruments issued under ICICI Bank's securitisation

programme



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-ICICI bank gets 'Best emerging market Bank ' award from the Global Finance

Magazine

-Mr. R Seshasayee who was appointed as Director on the Bank on May 03, 2002 has

tendered his resignation as a Director of the Bank.

-Action Aid has signed up with ICICI to launch the Karm Mitra credit card

-The trading of ICICI issued bond October 2000- Tax Saving Bond - Option I

ICICI1100 N1 (benefit u/s 88) was suspended

-ICICI Bank introduced foreign currency term deposit scheme for non-residents

including NRI's at its offshore banking unit (OBU) in Mumbai

-ICICI tie up with Big Bazaar to introduce Co-branded Card specifically for Big Bazaar

customers.

-The company's asset-backed securities (ABS) worth Rs. 835 crore on October 09

obtained highest safety ratings from Icra.

-The company unveiled its global deposits scheme for individuals from its Singapore

branch.

-Tied up with SBI and HDFC to share ATM networks

- Has set up representative office in Dubai

-Allotted 166857 equity shares of face value of Rs.10/- each on October 20, 2003 under

the Employee Stock Option Scheme.

-ICICI Bank unveils global deposits



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-Five persons have been arrested on the charge of duping ICICI Bank of Rs. 1.34 crore

by encasing a cheque purported to have been issued by Fortis Banque of France.

2004

-ICICI bank credit cards cross two million mark

- ICICI Banks 300 million dollar Eurobond has been awarded for being the best bond

issue of India and emerging Asian market during 2003, by two foreign magazines.

-ICICI e-Payments Ltd. has informed that they have acquired 8008357 shares

amounting to 69.99% of the total paid up capital of Tata Infomedia Limited

-ICICI Bank Ltd has informed that the Bank has allotted 1,25,444 equity shares of the

face value of Rs. 10/- each on December 22, 2003 under the Employees Stock Option

Scheme, 2000 (ESOS).

-The government has allowed ICICI Bank to keep the Rs. 350 crore 20-year preference

shares (subscribed to by ITC) in its books for five years.

-ICICI Bank Ltd has informed that the Bank has allotted 73,980 equity shares of the

face value of Rs. 10/- each on December 29, 2003 under the Employees Stock Option

Scheme, 2000 (ESOS).

-Bahrain Monetary Agency issues license to ICICI Bank's overseas unit. It also

extended a special concession for offering NRI banking services in the island nation as

well as in the international markets

2004



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-ICICI Bank inks pact with Mohan Bagan to unveil co-branded credit card

-ICICI-Overdrive awards for Honda City, Bajaj Pulsar

-ICICI Bank ties up with Air Deccan

-ICICI Bank opens new premises in Mangalore

-ICICI Bank unveils mobile ATM in Kerala

-ICICI Bank unveils International fixed deposit scheme at Singapore branch

-ICICI Bank acquires Numero uno position in new remittance scheme

-ICICI Bank sets up ATM in Thiruvananthapuram

-ICICI Bank launches its new home Loan Scheme with Variable EMI

-ICICI Bank Ltd has informed that the shares of the Bank are desisted from The Delhi

Stock Exchange Association Limited with effect from February 11, 2004.

-ICICI Bank, Mohun Bagan launch co-branded credit card

-The world's largest micro-finance securitisation deal of $4.3mn completed between

ICICI Bank and Share Microfin Ltd., a Hyderabad based micro financing organization

-ICICI Bank signs a memorandum of understanding with Jammu and Kashmir Bank to

share the ATM network.

-ICICI Bank and Andhra Bank have announced a tie-up that enables sharing of their

ATM networks.



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-Global Finance magazine has named ICICI Bank as one of the "Best Emerging Market

Banks Asia" in an exclusive survey to be published in the May 2004 issue.

-Comes out with a public offering of equity shares at a price of Rs. 280 to raise Rs.

3500 crore with a green shoe option of Rs. 450 crore

-ICICI Emerging Sector, the private equity arm of ICICI Bank, has acquired a 54 per

cent stake in the Bangalore-based Arvind Brands, the apparel arm of the Sanjay

Lalbhai-promoted Arvind Mills,

-ICICI Bank unveils Car Overdraft facility

-ICICI Bank, SBI, LIC in pact for Rs. 20,000-cr projects

-ICICI Bank and Punjab National Bank have signed a memorandum of understanding

(MoU) for ATM network sharing, giving customers access to over 2,200 ATMs in

India.

- ICICI Bank unveils co-branded credit card ICICI Bank Ebony

-ICICI Bank has won the best bank award instituted by Asia money in the category of

best domestic commercial bank in India

-ICICI Bank has bagged the prestigious award of 'Best Retail Bank in India' in the

category 'The Asian Banker Excellence in Retail Financial Services Program 2003'

-ICICI Bank-Aircel jointly unveil new co-branded credit card



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-Life Insurance Corporation acquires 16,370,009 shares constituting 2.23% of voting

rights in the company, increases its stake to 73,382,324 shares constituting 10.09% of

voting rights

-Punjab and Sind Bank (PSB) and ICICI Bank on July 02 announced the launch of co-

branded credit card that will be available in three variants - Gold, Silver and Blue credit

card

-ICICI Bank in association with Reliance Infocomm has launched an interactive mobile

banking service in India

-ICICI Bank unveils multi-branded card

-ICICI Bank has introduced a pre-approved personal loan product for Global Trust

Bank (GTB) customers

-ICICI Bank bags Internet awards from Global Finance magazine

-ICICI Bank Home Loans and ICICI Bank Home Search have launched `Home Utsav',

a property exhibition at the Institute of Engineers

-ICICI Bank Ltd on August 9, 2004, opened its representative office in Dhaka further

increasing its international presence. In light of the significant bilateral trade links

between the two countries, the bank greatly values the need to have an on-the-ground

presence

-ICICI Bank offers new service to Canada emigrants

- Launches 'Hello Canada Newcomers Account' designed to provide instant access to

banking services in Canada for Indians migrants on August 23



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- ICICI Bank introduces an easy deposit card at an interest rate of 0.99 per cent

-ICICI Bank rolls out kisan credit card in AP

- Launches `Easy Deposit Card', which charges an interest of 0.99 per cent per month

-ICICI Bank launches new mobile phone banking service

-Sets up offshore banking unit (OBU) in Bahrain

-Launches a new service for pre-paid subscribers of Airtel, Hutch, Orange and IDEA in

association with Euronet to recharge cards through bank's ATMs or by sending SMS.

-ICICI Bank has signed a deal with SunTec Business Solutions Private Ltd

-ICICI Bank unveils Visa Card in UK

CREDIT RATINGS OF ICICI

ICICI banks credit ratings by various credit rating agencies are given bellow:

TABLE-1

AGENCY RATING

Moodys Investor Service Baa3

Standard & Poors(S&P) BB+

Credit Analysis & Research Ltd(Care) CAREAAAInvestment Information & Credit Rating Agency(ICRA) AAA

2. 2.2. ORIGIN PROFILE



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ICICI 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 24 th

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 17 th 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).



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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



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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.

DIVERSIFICATION OF ICICI BANK LTD

Chart-2



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Chart-3

THE DIFFERENT LOGOS OF ICICI

SHARE HOLDING PATTERN JUNE 30, 2008

Paid-up capital Rs. 7.39 billion

TABLE 2



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ADR 27.3FII'S & NRI'S 45.2BANKS FI'S & UTI'S 15.7RESIDENT INDIANS 6.6CORPORATE BODIES 3.9OTHERS 1.4

SHARE HOLDING PATTERN

27.27%

45.15%

15.68%

6.59%

3.90%

1.40%ADR

FII'S & NRI'S

BANKS FI'S &

UTI'S

RESIDENT

INDIANS

CORPORATE

BODIES

OTHERS

Chart-4

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 companys

corporate banking and commercial banking.



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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

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

To borrow, raise or take up money, lend or advance money with or without interesteither upon or without security.

To draw, make, execute, issue, endorse, negotiate, accept, discount, buy, sell, collectand 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.

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



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To receive all kinds of bonds, scripts or valuables on deposits or for safe custody orotherwise, provide safe deposit vaults, collect and transmit money, negotiable

instruments and all securities.

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

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

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

To contract for public and private loans and advances and negotiate and issue the same. To carry on and transact every kind of guarantee and indemnity business. To undertake and execute trusts and the Administration of estates as executor or trustee. To act as registrar and transfer agents and registrar to the issue, issue agents and paying

agents.

To issue Debit or Credit cards to the customers or any other person. To do any other form of business, which the government of India may specifically as a

form of, business in which it is lawful for banking company to engage.

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;



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4. Attract and retain talented professionals; and

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

AWARDS AND RECOGNITION FOR ICICI BANK & erstwhile ICICI LTD

2005

" Triple AAA Best Cash Management Country Award in India" by the Asset

2004

"Best Bank in India" by Euro money

"Best High-Yield Borrower in India" by Euro money

"India's Most Customer Friendly Bank" by Outlook Money

"Best Bank" by Business India

"India Derivative House of the Year" by Asia Risk

"Best Consumer Internet Bank in India" by Global Finance

"Best Corporate / Institutional Internet Bank in India" by Global Finance

"Most Challenging IT Implementation Award" for the ICICI Bank EAI project by PC

Quest

"Best Domestic Commercial Bank" in India by Asia money

"Best Emerging Market Bank in India" by Global Finance

"Best Domestic Fx Bank in India" by Asia money Poll

"Best Bank of the Year in India" by Finance Asia

"Best Retail Bank in India" by Asian Banker

"Best Foreign Exchange Bank in India" by Global Finance

"India's Most Admired Private Sector Bank" by Business Barons

2003

"Best Bank of the Year in India" by Finance Asia

"The Asian Banker Excellence in Retail Financial Services Program" by the AsianBanker

"Best Bank Domestic Commercial Bank in India by Asia money



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"Best Emerging Market Bank in India" by Global Finance Magazine

"Best Multi-Channel Strategy 2003' award by The Banker Magazine, UK.

"Bank of the Year in India" by the Banker

Grand Prize Winner in Peak Workload, Unix Environments, OLTP in Winter Corp.'sTop Ten Program

DM Review Magazine-World Class Solution Award 2003 in the Business Intelligencecategory for its Teradata enterprise data warehouse solution.

"Best Consumer Internet Bank in India" by Global Finance magazine

"Best Integrated Consumer Bank Site in the Asia /Pacific Region" by Global Finance

"Best Foreign Exchange Bank in India" by Global Finance

"Best Trade Finance Bank in India" by Global Finance 2002

Bank of the Year from the Emerging Markets by the Banker Magazine of UK

Bank of the Year 2002, in India, by The Banker Magazine of UK Best Managed Bankin Asia, in a Poll by Euro money

India's top 5 most respected companies - Business World magazine

Best Bank in India by Global Finance

India's Most Admired Bank 2002 in the BB-TN Sofres Mode Poll

'Best Foreign Exchange Bank in India' by Global Finance.

'Excellence in Retail Banking' award by Asian Bankers Journal

Best Consumer Internet Bank in India by Global Finance

Best Bank in India by Global Finance

India's Most Admired Bank 2002 in the BB-TN Sofres Mode Poll 2001

Best Retail Bank in India from the Asian Banker

Product Innovation Award for Kid-e-bank account from the Asian Banker.

India's top 5 most respected companies, Business World Magazine 2000

Best Bank Award by Global Finance.



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I-payment was selected as a finalist in the commercial credit product or servicescategory in the Asian Banking Awards

Featured amongst the best 15 bank web sites in the world reviewed by Forbes Global.

1999

Best IT usage Award by TCS Limited and Computer Society of India.

Asian Banking Award by the Asian Banker's Association for record collections underthe Resurgent India Bonds Scheme.

2.3. PRODUCT/ SERVICES PROFILE

ICICI Bank boasts of a comprehensive suite of products and services that make

it a universal bank. The main offering of ICICI bank is below:

1. SAVINGS BANK ACCOUNT

ICICI Bank offers a power packaged account that offers a host of convenient features.

This includes access to the accounts.

Anywhere: Being one of the largest banking networks in the country with the 560

branches, 1,900ATMs and presence in over 280 cities across the country.

Anytime: 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.

Anyway: Access to vast majority of services through the ATM, phone and the internet

like ordering a cheque book, viewing the balance, etc so that the account holder never

needs to visit a branch for doing a business.

The savings bank account earns the customer 3.5% interest rate per annum.



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Value Added benefits include:

Quantum Optima / Automatic sweep facility:

On opening the savings account, if the balance in the account exceeds Rs.

10,000 the additional amount gets automatically shifted into fixed deposits in multiple

of Rs. 5000.

This amount is totally liquid and is withdrawn. Interest is calculated on a LIFO

basis

2. BILL PAYMENT:

Utility bills like telephone, mobile phones, electricity bills etc can be paid

online or through phone banking.

3. INVESTMENT SERVICES:

The account holder can make the investment in mutual funds, RBI Bonds and

insurance as well as trade in the stock market through ICICI Direct.com through ICICI

Bank.

Standing instructions:

Can be given like transferring funds to another account at regular intervals.

Free personalized cheque book:

With an ICICI Bank account the holder will gets a free cheque book with his name

written in style at the bottom free of charge.

Minimum balance to be maintained:

All the above can be availed by maintaining a quarterly average balance of Rs. 5000.



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4. ICICI BANK YOUNG STARS ACCOUNT/ (ACCOUNT FOR MINORS)

Young stars is banking a service fir children aged 1-18 years , offered by ICICI

Bank to help the parents to meet the present and future aspirations that they hold for

their child. It offers various savings ad investment options to the parent along with

teaching the child to manage his/her personal finance in a more responsible and

independent manner.

The main offerings of this account are:

Options of a savings bank account, Fixed Deposits account or Recurring Deposits

Account.

Minimum balance at Rs. 500/- per quarter for savings Bank.

A special recurring deposit account with additional features as below:

The parent would put forward the desired amount to be earned at the end of the tenure.

Based on the prevailing rate of interest, the bank staff would then back calculate the

installments to be deposited now till maturity

Free personalized cheque book.

Free domestic debit card for the child above the age of 10 years with features as

below:

Daily withdrawals limits of Rs. 1,000/-

Daily spend limits of Rs. 1000/-

Special privileges across all alliance partners outlets.

Facility to invest in GOI Relief and Mutual Fund.



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5. FREE INTERNET BANKING:

Separate user Id and password for both parents and children. Special Shopping

powers up to Rs. 1000 for the children above 10 years of age.

Access to special zones and links to related websites for making internet

Banking a memorable experience. Facility to transfer funds from parent account to kid

account to enable parent to inculcate savings habit amongst children.

6. BANK @ CAMPUS OR STUDENT BANKING SERVICES

Bank @ campus is basically a savings account designed for students. It requires

a quarterly average balance of just Rs. 500 to be maintained and offers the below

features:

Free personalized cheque book

Free Phone Banking

Free ICICI Bank Ncash debit card Free transfer of funds into his/her account from any ICICI bank account

Free supplementary credit card (if you have an ICICI Bank credit card)

Annual statement of accounts.

7. ICICI BANK SALARY ACCOUNT

ICICI Bank salary account is a benefit rich payroll account for employers and

employees. Organizations can opt for salary accounts to enable easy disbursements of

salaries and enjoy numerous other benefits too.

With ICICI Bank salary accounts the employees will enjoy the convenience of:

Having the largest network of ATMs at their command

Free 24 hours phone banking Free internet banking.



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The requirements of the company is to send ICICI Bank an advice (in form of a

cheque /debit instruction etc) for the total salary amount along with the salary details of

the designated employees in a soft and hard copy format and we will credit the

respective employees accounts as per your statement of advice.

ICICI Bank Salary Accounts benefits the company in more than one ways:

Reduce paper work.

Savers remittance costs.

Employees receive instant credit of salaries.

Besides all the above, employees will automatically become ICICI Bank

account holders with special benefits and privileges of reduced minimum balance

norms.

8. ROAMING CURRENT ACCOUNT

The roaming current account from ICICI Bank travels the distance with ones

business. With advanced technological features such as Multi-City Cheques and local

cheques collection, banking needs are well taken care of. Account can be accessed at

over 475-networked branches across the country. There is also round the clock phone

banking and also one can log in to www.icicibank.com or even get Mobile banking

alerts.

Some of the other benefits are:

Multi city cheque facility.

Anywhere banking facility.

Upcountry cheque collection.

Pay orders and Demand drafts. Phone banking facility.

http://www.icicibank.com/http://www.icicibank.com/http://www.icicibank.com/http://www.icicibank.com/http://www.icicibank.com/http://www.icicibank.com/


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Doorstep banking facility.

Internet banking facility.

Debit/ATM Card.

Mobile Banking Facility.

9. DEBIT/ATM CARD

This facility is available for sole proprietorships and partnership concerns.

Debit/ATM card be used for the following transactions.

Cash Withdrawal. Cash Deposit.

Balance Inquiry.

Cheque book request.

Mini account statements.

Transactions at various merchant establishments across the country

10. RECURRING DEPOSITS

Recurring deposits are an ideal way to invest small amounts of money every

month and end up with a very large savings of maturity.

These deposits encourage savings and loans can be claimed against the deposits.

The minimum balance of deposit is Rs. 1,000 and thereafter in multiples of Rs. 100.

The minimum period is 6 months and thereafter in multiples of 3 months.

11. CREDIT CARDS

Various types and kinds of credit cards are offered by ICICI bank. These are all

different to car themed and suits ones budget. The wide offerings are:



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True Blue Card, Sterling Silver, Solid Gold Card, HPCL Silver Card, HPCL

Gold Card, BPL Mobile Credit Card, Amway Credit Card, ICICI Bank American

Express Card, ICICI Bank Gold American Express Card, ICICI Bank Big Bazaar Credit

Card & ICICI Bank True Value Credit Card.

12. GOVERNMENT OF INDIA BONDS

The government of India 8% savings Bonds (Taxable):

The 8% option however, is for resident Indians, Hindu Undivided Families,

charitable institutions and universities. They attract a high interest rate of 8% per

annum, which are subjects to tax as applicable. The tenure for these bonds is 6 years

and is exempt from wealth tax.

13. ICICI BANK NRI SERVICES

A wide range of services tailored to the specific needs of NRIs. The bank offers

internet banking remittance, tax advisory and investment facilities.

14. MUTUAL FUNDS

There is a great scope to invest in mutual funds managed by experienced and

professional asset management groups.

The very essence of a mutual fund is a diversification and this it self reduces

risk. The fund will invest in stocks of different companies and different industries.

The ICICI Bank has started new services called Investment & Services Group

in its all branches. This will provide the free advice to its customer about the different.



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Investments and mainly it concentrates on the investments in mutual funds. It

will give assistance to its customer depending upon the following criteria.

The age of the investor

The holding time horizon of an investment

The risk profile of the investor

The investment amount (fund) and also ICICI Bank is the broker of the other mutual

funds namely

Birla Sun Life Mutual Fund.

DSP Merrill Lynch Mutual Fund.

Franklin Templeton Mutual fund.

HDFC Mutual Fund.

HSBC Mutual Fund.

JM Mutual Fund.

Kotak Mutual fund.

PRUDENTIAL ICICI Mutual Fund.

Reliance Mutual Fund .

Standard Chartered Mutual Fund.

TATA Mutual Fund.

These offer various options based on the requirement of the investors like

Liquid Plan, Income Plan, Gilt-Treasury, Gilt-investment, Balanced Fund, Growth Plan,

Tax plan, FMCG Fund.

15. ICICI Bonds



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ICICI offers to its customers a wide range of long-term deposits products like

safety bonds, Tax Saving Infrastructure Bonds, Children Growth Scheme, and Pension

Bonds and issued by ICICI through periodic public issues.

All ICICI Bank Bonds have been rated AAA by CARE and LAAA by

ICRA indicating the highest degree of safety for your money. The bonds are listed on

NSE, BSE and VSE.

16. SENIOR CITIZENS SERVICES

ICICI presents the senior citizen services, which primarily comprises of a

savings bank account thats an ideal investment choice for citizens above 60 years of

age.

The advantages are:

Higher interest rates on Fixed Deposits

The deposit scheme offers preferential rates to senior citizens, i.e., 5%

higher interest compared to the interest earned on fixed deposits.

17. LOANS AGAINST DEPOSITS

As a special gesture to senior citizens, ICICI Bank the facilities of availing up to

90% loan on the fixed Deposit amount. Also the rate of interest on the loan is only 1%

over the rate of interest on the fixed deposit.

Free Collection of Cheques



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The senior citizens can avail free collection outstation cheques drawn on location where

ICICI Bank has a presence.

18. LOANS

ICICI Bank offers the different categories of loans to its customers at highly

competitive interest rates. Following are the different loans offered by the ICICI Bank

I) HOME LOANS

ICICI Bank offers you the most attractive interest rates, along with complete

doorstep services. Loans ranging from Rs. 1 lakh to Rs. 1 Crore are available, with

repayment period up to 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.

II) 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.

III) 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

IV) CONSUMER DURABLE LOANS



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Customer can able to avail loans ICICI Bank provides customized options to

ensure that customer get the best value with great ease. Customer can able to avail up to

85% of finance.

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.

Systems, a minimum loan of Rs. 7000 repayable in convenient options of 6 to 36monthly installments is offered

For durables products like color TVs, Refrigerators, Washing Machines,

Microwave Ovens or Music.

V) LOANS AGAINST SECURITIES

VI) TWO WHEELER LOANS

ORGANIZATION STUDY-MCKINSEY 7S MODEL

The Seven Framework first appeared in The Art of Japanese management by

Richard Pascale and Anthony Athos in 1981. They had been looking at how Japanese

industry had been so successful, at around the same time that Tom Peters and Robert

Waterman were exploring what made a company excellent. The Seven S model was

born at a meeting of the four authors in 1978. It went on to appear in In Search of



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Excellence by Peters and Waterman, and was taken up as a basic tool by the global

management consultancy McKinsey: its sometimes know as the McKinsey 7S model.

This is because, Tom Peters and Robert Waterman, were consultants at McKinsey& Co

at that time.

The model starts on the premise that an organization is not just Structure, but

consists of seven elements:

i.e., Strategy, structure, systems, style, staff, super ordinate goals (also known as shared

values), and skills.

According to them, managers, need to take account of all seven of the factors to

be sure of successful implementation of a strategy-large or small. All the seven Ss are

interdependent, and proper attention should be paid to each one of them.

Those seven elements are distinguished in so called hard Ss and soft Ss. The

hard elements are feasible and easy to identify. They can be found in strategy

statement, corporate plans, organizational charts and other documentations.

The four soft Ss however, are hardly feasible. They are difficult to describe

since capabilities, values and elements of corporate culture are continuously developing

and changing. They are highly determined by the people at work in the organization.

Therefore it is much more difficult to plan or to influence the characteristics of

the soft elements.

Although the soft factors are below the surface, they can have a great impact of

the hard Structures, Strategies and Systems of the organization.



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chart-5

DESCRIPTION

THE HARD SS

STRATEGY: Actions a company plans in response to or anticipation of changes in its

external environment.

STRUCTURE: Basis for specialization and co-ordination influenced primarily by

Strategy and by organization size and diversity.

SYSTEMS: Formal and informal procedures that support the strategy and structure.

(Systems are more powerful than they are given credit)

The Soft Ss

STYLE/CULTURE:

The culture of the organization, consisting of two components:



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Organizational Culture: the dominant values and beliefs, and norms, which develop

over time and become relatively enduring features of organizational life.

Management Style: more a matter of what managers do than what they say; how do a

companys managers spend their time? What are they focusing attention on?

Symbolism-the creation and maintenance (or sometimes deconstruction) of meaning is

a fundamental responsibility of managers.

STAFF: The people/human resource management-processes used to develop managers,

socialization processes, and ways of shaping basic values of management cadre, ways

of introducing young recruits to the company, ways of helping to manage the careers of

employees.

SKILLS: The distinctive competences- what the company does best, ways of

expanding or shifting competences Shared Guiding concepts, fundamental ideas

around which a business is build-Values/ must be simple, usually stated at abstract

level, have great meaning Super inside the organization even though outsiders

may not see or Ordinate understand them

GOALS

If one element changes then this will affect all the others. For example, a

change in HR-systems like internal career plans and management training will have an

impact on organizational culture (management style) and thus will affect structures,

processes, and finally characteristic competences of the organization.



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The 7-s Model is a valuable tool to initiate change processes and to give them

direction. A helpful application is to determine the current state of each element and to

compare this with the ideal state; Based in this it is possible to develop action planes to

achieve the intended state.

7S MODULE OF ICICI

1. STRATEGY

ICICI Bank has also bagged the Best Multi-Channel Strategy 2003, in the

banker Awards 2003. The bank has won the award for successfully implementing the

multi-channel strategy combining traditional banking channels with newer alternative

channels to expand its geographical pr essence despite underdeveloped communications

infrastructure. It also follows the Strategy of building a diversified and derisked asset

portfolio.

ICICI Banks Growth Strategy involves:

Fully tap the growing market through higher incremental market share than

competition

Adopt innovative strategies to expand the market

Greater geographical penetration

Introduction of new products in various segments.

Provide high quality customer convenience & service



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ICICI has pursued the business strategy of becoming a universal bank.

The business strategy in the retail operations is to establish a strong financial

services brand, and to offer a comprehensive range of innovative financial pr9oducgs

and services across the country, using multiple distribution channels. This strategy has

rapidly boosted the retail business both in terms of deposits and assets. The bank has a

solid retail distribution franchise with about 540 branches and offices, over 1790 ATM,

more than five million deposit accounts and one million Internet banking customers.

ICICI Bank also has a micro finance strategy. It is finding innovative and

profitable ways to extend financial services to the rural poor. Prompted in part by

regulation that requires all banks to serve the rural market, ICICI Bank is developing

multiple channels to deliver micro finance. It proposes to finance a network of village

internet kiosks, partner with micro finance institutions (MFIs) who will act as loan

service agents, and collaborate with social entrepreneurs to establish Greenfield

MFIs.

The banks wholesale banking strategy involves:

Rapidly grow market share in fee-based products and services.

Focus on highly rated corporate finance.

Leverage corporate relationships to cross-sell.

Limited project finance business with focus on syndication and sell-down.

2. STRUCTURE



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ICICI bank believes that the structure of an organization needs to be dynamic,

constantly evolving and responsive to changes b9oth in the external and internal

environments. Their organization structure is designed to support their business goals,

and is flexible while at the same time ensuring effective control and supervision and

consistency in standards across business groups.

The organization structure is divided into 5 principal groups:-

1. Retail Banking .

The Retail-banking group comprises ICICI Banks retail assets business

including various retail credit products, retail liabilities (including deposit accounts) and

rural micro banking.

2. Wholesale Banking.

The Wholesale Banking Group comprises ICICI Banks corporate banking

business including credit products and banking services, with separate dedicated groups

for large corporate, Government and public sector entities and emerging corporate.

Treasure, structured finance and credit portfolio management also form part of this

group.

3. Project Finance & Special Assets Management.

The Project Finance Group comprises the project finance operations for

infrastructure, oil & gas, manufacturing and shipping sectors. The Special Assets

Management Group is responsible for large non-performing loans and accounts under

watch.



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4. International Business.

The International Business Group is responsible for ICICI Banks international

operations as well as co-coordinating the international strategies and alliances of its

subsidiaries and affiliates.

5. Corporate Centre.

The Corporate Center comprises all shared services and corporate functions,

including finance and secretarial, investor relations, risk management, legal, human

resources and corporate branding and communications.

ORGANIZATION STRUCTURE Chart-5


Chairman

(N Vaghul)

Managing Director &CEO (K V Kamath)

Joint ManagingDirector(Lalitha D Gupte)

Joint ManagingDirector(HN Sinor)


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Organization Structure Contd.


Joint GeneralManager

Joint GeneralManager

Deputy GM

Asst. GM Asst. GM Asst. GM

Deputy GM Deputy GM Deputy GM

Chief Manager Chief Manager Chief Manager

63

Exec. Director.Corp. Center(KalpanaMorparia)

Exec DirectorProject Fin &Spl. Assets(S Mukherji)

Exec DirectorRetail Banking(Chanda DKochhar)

Exec. DirectorWholesaleBanking(Nachiket Mor)

SeniorGeneral

Manager

SeniorGeneral

Manager

SeniorGeneral

Manager

SeniorGeneral

Manager

SeniorGeneral

Manager

SeniorGeneral

Manager

General Manager

GeneralManager

GeneralManager

GeneralManager

GeneralManager

Sen OfficerSen Officer


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3. SYSTEMS

The decision-making systems within the organization can range from

management intuition, to structured computer systems to complex expert systems and

artificial intelligence. It includes:

Computer Systems

Operational Systems

HR Systems, etc

ICICI bank uses powerful-networked computer database known as finnacle.

The bank has also needed to manage the technology risks associated with migration

from its legacy systems to the new technologies necessary to manage the increasing

volumes of transactions at net speed. The bank also has its own performance review

and reward systems, which is very unique and powerful in the industry.

ICICI Bank is at the forefront of usage of technology in the financial services

sector. It has used Information Technology as a strategic tool for its business

operations, to gain competitive advantage and to improve overall productivity and

efficiency of the organization.


Officer Officer


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Enhanced level of customer services like 24/7 services, Internet banking, multi

channel banking, etc Cost efficiency like reduction in traditional branch

network/service staff, wider and focused market reach and opportunities for cross

selling

Application of Information Systems to effectively market to their target customers and

to monitor and control risks.

ICICI Bank was one of the first banks in the country to put in place a

nationwide data communications network connecting all its offices/branches. It has

also installed an advanced banking system, which addresses its corporate banking as

well retail-ban

financial performance of icici bank ltd

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