icici bank and icici merger

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  • 8/10/2019 Icici Bank and Icici Merger


    ICICI Bank and ICICIMerger

    Mr Sanjay Medhavi a

  • 8/10/2019 Icici Bank and Icici Merger



    Industrial Credit and Investment Corporation of India

    Founded in 1995 by as a joint-venture of the World Bank

    ICICI Bank launched internet banking operations in 1998.

    In 2000, ICICI Bank became the first Indian bank to list on the

    New York Stock Exchange. ICICI Bank is Indias second-largest bank.

  • 8/10/2019 Icici Bank and Icici Merger



    Type: Public

    Founded: 1995

    Headquarter: Mumbai,Maharashtra,India

    Industry: Banking, Financial service

    Products: Customer Banking, Corporate Banking, Finance and insuran

    private banking, Credit cards etc. Total assets of Rs. 5,946.42 billion (US$ 99 billion) at March 31, 2014

    and profit after tax Rs. 98.10 billion (US$ 1,637 million) for the yearended March 31, 2014.

    Employees: 79,978 (2014)

    Website: www.icicibank.com

  • 8/10/2019 Icici Bank and Icici Merger


    ICICI and ICICI Bank Merger

    The merger of ICICI and ICICI Bank created India's second largestbank after State Bank of India

    India's largest finance company and largest private bankannounced on 24thOctober, 2001 that they are merging.

    The merger created the nation's first universal bank, or one-stoprovider of virtually all types of financial services.

  • 8/10/2019 Icici Bank and Icici Merger


    Why did ICICI and ICICI bank Merge

    ICICI merged with its banking subsidiary to obtain access to: cheaper funds for lending,

    and to increase its appeal to investors so it could raise capital needed towrite off bad loans.

    Cheaper Funds Cheaper funds after the announcement of Reserve Bank of

    India that it would begin processing applications to createuniversal banks.

  • 8/10/2019 Icici Bank and Icici Merger


  • 8/10/2019 Icici Bank and Icici Merger


    Benefits of Merger

    Economies of Scale through volumes in Operating Costs

    Technology Development

    Economies of Scope Large product suite (Cross Selling potential)

    Optimization of Human Capital

    Optimization of Financial Capital

  • 8/10/2019 Icici Bank and Icici Merger


    Benefits of Merger

    Forward leap in the hierarchy of Indian banks A discontinuous jump in size and scale

    Achieve size and scale of operations Leverage ICICIs capital and client base to increase fee income Higher profitability by leveraging on technology and low cost structure

    Offer a complete product suite with immense cross-sellingopportunities ICICIs presence in retail finance, insurance, investment banking and

    venture capital

    Access to the ICICI groups talent pool

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    Benefits of Merger

    Improved ability to further diversify asset portfolio and businessrevenues

    Lower funding costs Ability to accept/ offer checking accounts

    Availability of float money due to active participation in the payments syste

    Diversified fund raising due to access to retail funds Increased fee income opportunities

    Ability to offer all banking products

    Merged entity would have key competitive advantages and would be amore efficient provider of capital Bank

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    Competitive advantages of the merged enti

    After the merger, the combined entity became the second-largebank in India,

    an asset base of over Rs. 1 trillion Large capital base

    Extensive customer relationships & strong brand franchise

    Complete product suite Technologyenabled distribution architecture

    Low operating costs Vast talent pool

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    The merger created a strong entity, redefined the banking in the high

    competitive era of globalization aliberalization.