sip project on icici bank by :- gaurav bhut

Report on ICICI BANK

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The

Summer Internship Project report

“RATIO ANALISIS”

At

ICICI BANK.

Submitted By

Bhut Gaurav B.

Enrollment No. 137730592202

Academic Year: 2010-11

MBA Semester III

Institute Name:

Sunshine Group of Institutions,

Faculty of Management, Rajkot

Submitted To

Gujarat Technological University


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PREFACE

A man without practical knowledge is just like a rough diamond. To shine like a real

diamond one must have practical exposure of what he has learnt. For the management

students, theoretical knowledge is just like lock without key, so practical knowledge is of

utmost importance.

It is quite true that world outside; your cozy home is many times quite different from

what you have perceived. Similarly it is possible that theoretical knowledge acquired in

the classroom may differ from the practical knowledge.

As a curriculum part of M.B.A. course, I have taken my practical training at ICICI

BANK, JUNAGADH .

It is my pleasure to present this project work after I had finished my summer training at

ICICI BANK. This training has expanded my horizon of knowledge in practical as well

as theoretical, which is vital for student in management level studies. Only the basic

understanding of the principles of management is not sufficient but their application is

also equally important.

I worked at Main Branch, Junagadh and have tried my best to collect information on

Marketing, Finance, Operation and Human Resource by visiting each of the departments.


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ACKNOWLEDGEMENT

To acknowledge is very great way to show your gratitude towards the persons who have

contributed in your success in one or other way.

I find words inadequate to express my gratitude towards Mr. Gaurav Joshi, Branch

Manager, for providing me an opportunity to carry out my summer training at ICICI

BANK LTD., Junagadh.

At the very outset of the training I deem it is my pious duty to express my sincere thanks

to Mr. Ashish Rathor, Regional Product Manager, Mr. Jayesh Vasani, Assistant

Unit Manager and Mr. Hitesh Sheth, Assistant Unit Manager, for his continuous

guidance and supervision during the training period.

My most profound thanks to my revered guider Prof. Alpesh Shah whose generous and

able guidance has always been an unfailing source of inspiration throughout my training

period.

DATE:

PLACE: RAJKOT

Yours faithfully,

GAURAV BHUT


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DECLARATION

I Mr. GAURAV BHUT student of M.B.A – Sem. III hereby declare that the project

work presented in this report is my own work and has been carried out under

supervision and guidance of Professor ALPESH SHAH, Professor of sunshine

institution Rajkot

The objective of the training undertaken is to know all the department of the organization

and to acquire practical knowledge in particular field.

This work has not been previously submitted to any other university for any other

examination.

DATE :

PLACE : RAJKOT


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FROM CEO’S DESK

Over the last few years, ICICI Bank has taken rapid strides in

developing new businesses in line with its proposition to offer

complete financial services to both corporate and retail customers.

With the recent addition of insurance, I believe our proposition is

now fulfilled. Going forward, our challenge will be to continue

innovating to improve market shares and maintain our competitive edge. In this endeavor,

we will continue to benchmark with global best practices to ensure optimum utilization of

our resources and the finest exposure to our work force. The speed with which we have

been able to transform our organization and successfully start so many new businesses is

almost singularly owing to the skills, enterprise and the depth of our human resources.

We are committed to enriching this valuable resource, which in turn, will allow us to

bring innovative practices to the world of financial services in India.With technology

playing the key role.

My vision is to develop ICICI Bank into an organization that is empowered by bright and

talented individuals, working in teams and riding on the backbone of excellent

technology. We are getting there. Moreover, we look forward to you joining us in this

journey.


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INDEX

NO. PARTICULAR PAGE NO

1 GENERAL INFORMATION 9

2 MARKETING DEPARTMENT 51

3 HUMAN RESOURCE MANAGEMENT 89

4 FINANCIAL MANAGEMENT 111

5 RECOMMENDATION & SUGGESTION 149

6 CONCLUSION 150

7 BIBLIOGRAPHY 152


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GENERAL INFORMATION


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INDEX

OF

GENERAL INFORMATION

NO. PARTICULAR PAGE NO.

1 INDUSTRY ANALYSIS 11

A. Brief History of Industry 12

B. Current Status of the Industry 25

C. Future of the Industry 27

2 COMPANY OVERVIEW 29

A. Basic Information 30

B. Board of Directors 31

C. Brief History of the Company 33

D. Competitors 44

E. How ICICI is better than others 46

F. SWOT Analysis 49


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INDUSTRY ANALYSIS


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A:-BRIEF HISTORY OF THE

INDUSTRY

BANKING, TRADE AND COMMERCE

HISTORY OF INDIGENOUS BANKING

The indigenous bankers who belonged to different communities lent money on the

security of jewels and also on promissory notes. They functioned both in urban and rural

areas. Most of the loans were short-term, repayable with interest after the harvest of the

crops, either in one or more installments. The conditions were informal in that the loans

could be obtained at any time and without any security depending on the confidence and

the relationship of the lender with the borrower.

Nevertheless, money-lenders and pawnbrokers have a great hold over agriculturists and

others, and their success lies in their intimate knowledge of their customers. Besides the

terms are mostly informal and there is no hard and fast rule about the security or interest.

MONT-DE-PIETE: Called as Pawn office, set up by the French, by means of an

ordiance dated 1 May 1827 initially at Pondicherry and setup similar institution at

Karaikal under the arretes of 29 July, 1907. The Institution was provided with necessary

funds from the reserve fund. It rendered great service to the needy sections of the

population and notably the small agriculturists by providing them advances at reasonable


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rate of interest. The institution gave loans from Rs.3 to Rs.3,000 on the security of

jewels and silver articles depending on the value of the security, the amount of loan

ranging from 1/4th to 4/5th of the total value of gold ornaments or silver articles, as the

case may be. The rate of interest fixed at 8 percent per year. As the institutions had only

limited resources at their disposal, they were unable to meet the credit

requirementsofthepeople.

PONDICHERRY POWNBROKERS ACT based on the Madras Pawnbrokers Act, 1943

was passed in 1966 with slight modifications to meet the local requirements and

brought into force on 15 October, 1966. The USURIOUS LOANS ACT, 1918 (Central

Act) extended to this Territory in 1966 was brought into force on 1 September 1970.

THE PONDICHERRY MONEY-LENDERS ACT, 1970 (26 of 1970) which sought to

regulate and control the business of money-lending by introducing the system of

registration was assented to on 19 August 1970 and made applicable to Karaikal region

with effect from 1st October, 1970. The Tahsildars and Deputy Tahsildars function as

Inspectors under the Acts with power to inspect the accounts of the licensees

periodically and to take legal action against offenders.

THE INDIAN BANK SURVEY IN 1970, revealed that there was a good cause for

establishing several branches of COMMERCIAL BANKS in the Territory. Moreover,

it would be to the mutual benefit of the banks and the public if commercial banks could

take to small lending's against mortgage of jewels and utensil in a big way. This would

free the people from the exploitation of pawnbrokers and it would also promote the

banking habit among the lower strata of people.


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GENERAL CREDIT FACILITIES

JOINT STOCK BANKS: With the extension of the BANKING COMPANIES ACT,

1949 and the FOREIGN EXCHANGE REGUALTION ACT, 1947, to Pondicherry in

1954 the stage was set for Indian Banks to open their branches in this Territory.

A branch of UNITED COMMERCIAL BANK was opened in Karaikal on 10 August,

1973. The bank extends every kind of banking facility to the public.

As on 31 December 1975, three branches of the INDIAN OVERSEAS BANK were in

operation in Karaikal region viz. Karaikal, Thirunallar,and Thirumalairajanpattinam.

As on 31-12-1975, THE STATE BANK OF INDIA, INDIAN BANK, CANARA

BANKare alsohavingbranchesinKaraikal.

Besides these banks, The Lakshmi Vilas Bank Ltd. has also opened its branch. All the

branches of the banks are having Savings Account, Recurring Deposit Account,

Current Account, Term Deposit, Cummulative Deposit Schemes, etc.

Most of the banks are having facilities of foreign exchange,

agricultural finance. Farmers were advanced liberal loans for the purchase of pump-

sets, tractors, etc., and towards crop loans. Proposals for loan from small and

big industries, professional men, self-employed persons, etc. are entertained. Village

Adoption Scheme, Lead Bank Scheme sponsored by the Reserve Bank of India for

provision of comprehensive credit to small farmers, and Consumer Credit-Installment

Loan Scheme are provided by these banks. Assists import and export trade, deals

pledge of gold ornaments, etc. Travellers Cheques, Letters of introduction are available.

Credit Card System, and ATM are introduced in some banks. Housing Loans


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SchemesarenowfamiliarizingintheBanks.

The Depositors are mostly middle class businessmen, salaried persons and French

pensioners, educational and religious institutions apart from the Government

transactions and deposits, etc. Most of the depositors, belong to the low income group as

well as the salaried middle income group besides small organizations. Agriculturists in

selectedvillagers.

The public have not in general taken to the banking habit. While the public have shown

great enthusiasm to avail of loan facilities from the banks, they have not shown the same

degree of enthusiasm to deposit their surplus funds in the banks. However, most of

the NRIs are interested to settle in Karaikal region and the NRI deposits are now filling

the Bank deposits more than the expectations.

CO-OPERATIVE CREDIT BANKS and SOCIETIES are also meet the long term /

short term credit requirements of the public / ryots in this region.PRIVATE

BANKS, such as the Kumbakonam parspara sagayanithi limited, etc, are also

functioning.

COOPERATIVE CREDIT SOCIETIES AND BANKS : The small farmers and tenant

holders badly needed finance to carry on their agricultural operations. They also had to

withstand the effects of droughts and floods from time to time. All these factors placed

the small farmers at the mercy of the money-lenders. Thus the introduction of

cooperative institutions in the Territory came as one of the salutary results of merger.

The cooperative credit system in the Territory is built upon a two-tier structure i.e., the

Apex Financing Agency at the top and the credit societies at the primary level.


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THE PONDICHERRY STATE COOPERATIVE BANK LIMITED was duly

registered on 10 October 1958. The bank started functioning from 30th October

1958, which has jurisdiction over the entire Territory is the Apex Cooperative sector

channeling the funds received from the Reserve Bank of India to the affiliated credit

societies at a lower rate of interest. It provides short term and medium

term agricultural loans to the agriculturists through its affiliated societies. The bank

also issues medium-term loans for non-agricultural purposes to public servants through

the affiliated staff cooperative societies to a limited extent.

AGRICULTURAL CREDIT SOCIETIES, FARMING SOCIETY, MARKETING

SOCIEITES, PRIMARY COOPERATIVE BANKS, NON- GRICULTURAL CREDIT

SOCIETIES, CONSUMER STORES SOCIETIES, WEAVERS

SOCIETIES, INDUSTRIAL SOCIETIES, HOUSING SOCIETIES, and OTHER

TYPES OF SOCIETIES were affiliated to the bank.

GENERAL & LIFE INSURANCE

LIFE INSURANCE : After the formation of LIFE INSURANCE CORPORATION OF

INDIA in September, 1956, the Servicing Branch of Nagapattinam under the

Controlling Divisional Office at Thanjavur, Karaikal has been provided all services by

the LIC. However, a separate servicing branch has also been opened some years ago in

Karaikal which is more helpful to the people of Karaikal.

SSS: The Salary Savings Scheme was introduced benefiting government

employees. The Salary Savings Scheme is not only applicable to government servants

but also to the employees of mills, local bodies, etc.


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UTGEIS: A special scheme for the Union Territory Govt. Employees Insurance

Scheme has been introduced and functioning for the welfare of Govt. employees.

LIC introduced Income tax benefit schemes which are familiar to the Medium and High

IncomeGrouppeople.

Housing Scheme is now very popular. Under this scheme purchase of plots, construction

of new house building, purchase of ready built building, re- constructing of old

building, etc. schemes are available. Special and attractive Schemes for NRI also

available.

GENERAL INSURANCE

General insurance companies operated in various parts of India for the purpose fire and

transit insurance for house and other buildings have not branches in Karaikal. However,

the NEW INDIA ASSURANCE COMPANY having its branch and provide service on

motor insurances for the various fleet owners and individual vehicle owners among

government officials and general public.

STATE ASSISTANCE FOR INDUSTRIAL DEVELOPMENT

Pondicherry administration initiated several measures to speed up the industrial

development of the Karaikal region under the SINGLE WINDOW

SYSTEM. The establishment of an INDUSTRIAL ESTATES to encourage the growth

of small scale industries. Providing financial aid to industries should be passed as

early as possible for the purchase of land, construction of factory

building, purchase of tools, equipment, machinery, and also provided for the payment


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ofasubsidy on interest. An act also passed in this regard called PONDICHERRY STATE

AID TOINDUSTRIESACT,1970.

THE INDUSTRIAL DEVELOPMENT BANK OF INDIA AND THE INDUSTRIAL

FINANCE CORPORATION OF INDIA, extended refinance facility to industrial units

in the Territory. Also offer a lower rate of interest, longer moratorium and

amortisation periods and accept a lower margin of security.

PONDICHERRY INDUSTRIAL PROMOTION, DEVELOPMENT AND INVESTME-

NT CORPORATION LIMITED (PIPDIC): This Corporation was incorporated under

the Companies Act, 1956, on 17 April 1974. Its objective is to work

for the industrial development of the Territory. The Corporation is managed by a Board

of Directors appointed by the Lieutenant-Governor. The implementation of the

Central Government's outright grant or Capital Subsidy Scheme was handed over to

this Corporation. Schemes for financial assistance to small, medium and large-scale

industries as well as technocrats have also been formulated by the Corporation.

OUTRIGHT GRANT: Following the declaration of the entire Union territory

as an industrially backward area in September, 1971, entrepreneurs became eligible

for certain concessions under the Central Government's outright grant or subsidy

scheme.

Arrangements were made in to register small-scale industrial units with the

Directorate General of Supplies and Disposal through the National Small

Industries Corporation and Small Industries Service Institute in order to help them

markettheirproducts.

CONSULTANCY SERVICE: Services of experts of the various Regional

Productivity Councils of the National Productivity Council and other Organizations


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which offer consultancy services are made available to small-scale units in the

Territory.

RAW MATERIAL DEPOT: This helps secure priority allocations for industrial and

scarcematerials.

SALES TAX EXEMPTION/CONCESSION: The Govt. gives exemption from the

payment of sales tax and further reduced by half the central sales tax payable in respect

of all goods manufactured by small-scale industries under certain conditions.

REMISSION OF STAMP DUTY: This Administration have also exempted all types

of industries from payment of stamp duty for deeds executed in favour of the PIPDIC.

EXEMPTIONOFREGISTRATION FEE: Small-scale industries in

Pondicherry are exempted from the payment of registration fee under certain

conditions.

POWER SUBSIDY: The administration had announced a scheme of power

subsidy for low tension and high tension power consuming industries.

MISCELLANEOUS CONCESSIONS: Facilities like hire-purchase of

machineries, Price preference, Industrial tour for getting technological advances.

SMALL SAVINGS

In Karaikal region, the functions for the NATIONAL SAVINGS

ORGANISATION, are performed by the Assistant Regional Director, Trichirapalli,


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andtheDistrictSavingsOfficer,Nagapattinam.

STATE ADVISORY BOARD: Constituted to advise and guide the

administration to popularise the small savings with the Chief Secretary as Chairman and

theFinanceSecretaryasVice-Chairman.

OPERATION SCHEMES: In Karaikal region all the Sub-Post Offices, and Branch

Officesrenderthesavingsbankfacilities.

Fixed Deposit Scheme, The Cumulative Term Deposit Scheme, Cash Certificates are

introduced for the inducement of Small Savings.

CHIT FUND

The chit fund locally known as ceetu serves both as a profitable avenue of investments

andaconvenientmethodofsmallsavings.

To have effective control over the functioning of the chit fund companies and

to safeguard the interests of the subscribers, the Pondicherry Chit Funds Act, 1966

was passed . This Act, which provided for measures to regulate chit funds, was brought

intoforceon1st August,1977.

In Karaikal, The Mayavaram Chit fund ltd, Visalam Chits, etc., are functioning. In

addition to the chit fund companies mentioned above, there are also some vessel,

furniture, Gold ornaments, and other merchants who run chits. The difference is that the

prize winner gets the prize in kind of terms of the agreement and once having won the

prize, the subscriber is not required to pay his subscription any further. The Chit Funds

Act does not cover this kind of chits.


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COINS AND CURRENCY

With merger, THE INDIAN COINAGE ACT, 1906, THE RESERVE BANK OF

INDIA ACT,1934 AND THE CURRENCY ORDIANCE OF 1940 were extended to

the Territory with effect from 1 November, 1954. With the extension of these Acts,

Indian coins, one rupee notes and bank notes issued by the Reserve Bank of India

formally became legal tender in the French establishments.

Foreign currencies brought by the NRIs have also been exchanged in the selected

branches of the Scheduled Banks.

COURSES OF TRADE

EXPORT AND IMPORTS IN OLDEN DAYS: Rice was lifted chiefly from Karaikal.

Pottery, ground-nut oil, oil, small quantities of coconuts, tamarinds, onions,

tannin, dyes, coconut oil, chillies, coriander and gingelli were also exported. The

export from Karaikal was about one-nith of the total sea-borne trade.

Imported Petroleum served as a depot for the surrounding districts.

Smaller imports included wines, spirits and other liquors,coal, cotton thread, jute

bags and grains. A large proportion of the import trade was with the British Empire and

a small proportion with France and the French possessions.

Gold which fetched a much higher price in India than in French India was taken to the

frontier in larger quantities. Gold and Diamond were imported through official

channels paying customs duty which was nominally increased subsequently to improve

the revenues. These were smuggled to the Indian Union. In turn, more Indian


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rupees from Pondicherry reached Hong Kong and the Persian Gulf wherefrom gold

wasbrought.

AFTER MERGER : The Import and Export Control Act, 1947 was extended to these

establishments with effect from 1 November, 1954. Import and export licences were

granted in accordance with the policy announced by the Indian Government from time

totimeonanall-Indiabasis.

A Special Additional Licensing Scheme was introduced for the first time during the

January-June 1955 period. The main items of imports under this scheme were

electrical instruments, motor starters, house service meters, betel-nuts, cloves,

chemicals, drugs and medicines and other consumer items imported in terms of the quota

system.

Presently, the traders know the modern technique of trading method and at present in

Karaikal various kind of products such as, ornaments, furniture, CTV, Fridge, Electrical

and Electronic goods, Medicines, Automobiles and its spares, Rubber Products, Plastic

goods, Building materials, Bakery, Sweets, Food-items, Household articles, etc. are

sellinginKaraikal.

This Administration also paved the way for increasing the Trading activities by

conducting VANIGA VIZHA, etc.

CUSTOMS AND CENTRAL EXCISE

The system of levying customs duty to regulate the movement of goods across the

borderswasinforceveryearlytimes.


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With de facto merger a Collectorate of Customs and Central Excise started

functioning with headquarters at Pondicherry. At Karaikal a Central Excise Range in

charge of an Inspector assisted by a sepoy has been constituted.

CENTRES OF TRADE

Even though some other marketable centres situated in the adjourning Tamil Nadu

State boundaries, Karaikal is the most important for trading activities because of having

unique features in the field of cultural and literal society. Having its administration

which is also helps between the consumers and the traders.

WEIGHTS AND MEASURES

The Pondicherry Weights and Measures (Enforcement) Rules were brought into force

with effect from 10 August 1968 replacing the Madras Weights and Measures Rules till

then in force.

The Office of the Assistant Controller of Weights and Measures and Legal Metrology

was formed with responsibility to deal with all matters connected with Weights and

Measures and Excise under the Administrative control of the Revenue Development

Department.


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ASSOCIATIONS AND ORGANS OF

TRADE NEWS

Karaikal is having a good trade associations in various types of trading activities. The

Karaikal Chamber of Commerce has been established recent years ago and functioning

smoothly.

About trade news some of the free issue news-papers such as Vazhga Valarga, etc.,

are guiding the consumers for shopping.


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B:- CURRENT STATUS OF THE

INDUSTRY

The security market in India has developed a lot in last 5 to 7 years. The development is

due to the increasing awareness among the people, developing communicational media

and most importantly change in the way of transaction i.e. on line trading of securities.

BSE Online Share Trading ―B.O.L.T.‖ has brought revolution in the security market.

Introduction of private banks in security market dealing and real estate business have

brought the efficiency and competition in the market. Mutual funds are also one of the

major element which has influenced the growth of security market. Foreign Investment

Institution [ F.I.I.] and Foreign Direct Investment [F.D.I.] has also contributed in the

growth of the security market in India.

Currently in the security market following securities are been traded by the investors,

institutional buyers and foreign investors.

Shares [ Equity shares & preference shares ]

Debentures

Government Bonds

Mutual Funds

Commercial papers


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The main feature of today‘s market is the Dematerialized form of almost all securities.

Previously the securities were available in materialized form i.e. in papers but now it is

available in Dematerialized form. It means securities are not given in paper format but in

ELECTRONIC format it is been directly credited in purchaser‘s demat account.

The main benefits of Dematerialized form are as follow.

Chances of fraud are minimized.

Physical delivery of security is terminated

No chance of theft of security

Quick hand over and less transaction time.


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C. FUTURE OF THE INDUSTRY

Looking at the past and present of the industry we can interpret the future of industry. As

India is a developing country and in economical aspect industries are still at growing

stage, we can surely assume the future of industry is bright and security market is also

going to grow with the industry.

FUTURE OUTLOOK:-

The outlook for the markets remain robust as investors are increasingly convinced about

the ‗growth story‘ of the country, the transformation of many Indian companies as global

entities and growing political consensus on sustaining economic reforms . Consequently,

the company expects India to remain the favored emerging market destination for equity

investments. The company looks forward to an other eventful year as India inc. continues

its march towards making its presence felt on the global investment map.

The derivatives market too holds immense promise and the company expects it to

continue to witness significant volume increases in the next few years. The company

remains committed towards maintaining leadership position in the segment.


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Over the years, company has been successfully able to develop the image of a house with

independent view. ‗The investors‘ conferences in Singapore and New York are now well

established events attracting record number of corporates and international investors. On

the back of this gaining popularity, the company remains confident of further depending

and broadening client relationships across geographies.


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COMPANY

OVERVIEW


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A. BASIC INFORMATION

NAME :- ICICI Web Trade

REGISTERED OFFICE :- Landmark',

RaceCourseCircle,

Alkapuri,

Vadodara-390007

Gujarat, India

TEL :- 339923/24/25

FAX :- 339926

WEBSITE :- WWW.ICICIBANK. COM

CHIEF EXE. NAME :- Mr. K. V. KAMATH

BUSINESS GROUP :- ICICI GROUP

INCORPORATION DATE :- 05/08/1997

AUDITORS :- S.R. BATLIBOI & Co.

C.A.

BANKERS :- ICICI BANK


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B. BOARD OF DIRECTORS

Mr. N. Vaghul, Chairman

Mr. Uday M. Chitale

Mr. P.C. Ghosh

Dr. Satish C. Jha

Mr. S.B. Mathur

Mr. L. N. Mittal

Mr. Anupam Puri

Mr. Vinod Rai

Mr. Somesh R. Sathe

Mr. P.M. Sinha

Mr. M.K. Sharma

Prof. Marti G. Subrahmanyam

Mr. V. Prem Watsa

Mr. K.V. Kamath, Managing Director & Chief Executive Officer

Ms. Lalita D. Gupte, Joint Managing Director

Ms. Kalpana Morparia, Deputy Managing Director

Ms. Chanda Kochhar, Executive Director

Dr. Nachiket Mor, Executive Director


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Board Committees

Board Governance & Remuneration Committee

Agriculture & Small Enterprises Business Committee

Credit Committee

Business Strategy Committee

Fraud Monitoring Committee

Share Transfer & Shareholders'/ Investors' Grievance Committee.

Asset-Liability Management Committee

Committee of directors

Risk committee

Audit committee


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C. BRIEF HISTORY OF THE COMPANY

HISTORY OF ICICI DIRECT.COM

The ICICI Web Trade is mainly dealing in the security market. The security market of

India is very widely spreaded and still it is growing at a good rate. The major institutions

which are involved in the security market are performing the role of the intermediaries

for ―Buyers‖ and ―Sellers‖ in the market. The service provided by the mediator is easy

transaction between two parties.

Before 1998 the security market was dealing in physical format. There were share

brokers who performed the job of the intermediaries between the two parties. The main

markets were the stock exchanges situated in different parts of the country. The brokers

were purchasing and selling the securities on behalf of the investors. The major stock

exchanges are as follow.

NATIONAL STOCK EXCHANGE { N.S.E. }:

NSE was set up in 1993 at Delhi to encourage stock exchange reforms through the

system modernization and competition. The NSE was following the screen based trading

system. The system through which the NSE is trading is known as the NEAT [National

Exchange for Automated Trading.]. It allows members across the country to trade

simultaneously and with full efficiency.


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As on December 1996 there were around 1200 companies traded on NSE. Out of 1200

companies only 535 companies were listed and rest were permitted companies. The

market capitalization as on January was 4.2 trillion. The total turn over of the NSE as on

January was around Rs. 2, 16,000 crores. This was more than nine times than the turn

over of 1995, which was Rs. 27,000 crores.

BOMBAY STOCK EXCHANGE { B.S.E. }:-

The BSE is situated at Mumbai more popularly known as the ―DALAL STREET‖. As the

Mumbai is the trading capital of the nation, most of the companies prefer to list their

shares in the BSE. The BSE had an extra age over the NSE in number of the companies

listed. As on December 1996, only 1200 companies were traded on the NSE where as on

BSE on the same day 5999 companies were traded. But since November 1995 trading

volumes on NSE is more than the BSE. The BSE is also a major party who has

contributed to the development of security market in India.

OVER THE COUNTER EXCHANGE OF INDIA {O.T.C.E.I. }:

The OTCEI was established in the October 1990. It was jointly promoted by following

institutions.

Unit Trust of India

ICICI

IDBI

SBI capital Market Ltd.

IFCI

GIC


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The OTCEI is an exchange where all the activities are computerized. It includes the

trading, billing, payments etc…… This had opened a new horizon for the security market

in India. As all the transactions were done through computers, it improved the speed,

efficiency and transparency of the transaction.

Overview

ICICI Bank is India's second-largest bank with total assets of about Rs.1,67,659 crore at

March 31, 2005 and profit after tax of Rs. 2,005 crore for the year ended March 31, 2005

(Rs. 1,637 crore in fiscal 2004). ICICI Bank has a network of about 560 branches and

extension counters and over 1,900 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 specialised subsidiaries and affiliates in the areas of

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

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

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

internationally. ICICI Bank currently has subsidiaries in the United Kingdom, Canada

and Russia, branches in Singapore and Bahrain and representative offices in the United

States, China, United Arab Emirates, Bangladesh and South Africa.

ICICI Bank's equity shares are listed in India on 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).

As required by the stock exchanges, ICICI Bank has formulated a Code of Business

Conduct and Ethics for its directors and employees.

At April 4, 2005, ICICI Bank, with free float market capitalization* of about Rs. 308.00

billion (US$ 7.00 billion) ranked third amongst all the companies listed on the Indian

stock exchanges.


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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 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


- 35 -

Services Limited, with ICICI Bank. The merger was approved by shareholders of ICICI

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

Free float holding excludes all promoter holdings, strategic investments and cross

holdings among public sector entities.

ICICI group is a dynamic business group in financial sector of India. It has got growth at

a very good speed and is still growing at better speed. The performance of the bank is

consistently growing at a very good speed. This is the reason that ICICI bank has been

ranked 2nd in all over performance in India. It is 2nd no bank after SBI group bank which

is leading the bank sector. But still in the private sector banks ICICI is leading the market

leaving behind banks like HDFC, Standard Chartered, Kotak Mahindra etc..

The history of growth of the ICICI is as follow in sequence of years.

1955 :

The Industrial Credit and Investment Corporation of India Limited (ICICI) incorporated

through the collective efforts of the World Bank, the Government of India and

representatives of Indian industry. Its main aim was to provide medium term and long

term loans to the Indian business units. Mr.A.Ramaswami Mudaliar was been elected as

the first Chairman of ICICI Limited

1956 :

ICICI declared its first Dividend at 3.5%. Within one year of the operation, bank started

earning profit and declared dividend.


- 36 -

1958 :

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

1960 :

ICICI building at 163, Backbay Reclamation was inaugurated.

1967 :

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

1969 :

First two regional offices in Calcutta and Madras were opened.

1972 :

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

1977 :

ICICI sponsors the formation of Housing Development Finance Corporation. Managed

its first equity public issue

1978 :

Mr. James Raj appointed as the fourth Chairman of ICICI.


- 37 -

1979 :

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

1982 :

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

ICICI commences leasing business.

1984 :

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

1985 :

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

1986 :

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

in the Swiss Capital Markets.

ICICI along with UTI sets up Credit Rating Information Services of India Limited,

(CRISIL) India's first professional credit rating agency.

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

The Corporation made a public issue of Swiss Franc 75 million in Switzerland, the first

public issue by any Indian equity in the Swiss Capital Market.


- 38 -

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 - India's first venture capital company.

1993 :

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

Morgan.

ICICI sets up ICICI Asset Management Company.

1994 :

ICICI sets up ICICI Bank.

1996 :

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

1997 :

The name "The Industrial Credit and Investment Corporation of India Limited " was

changed to "ICICI Limited".

ICICI announces takeover of ITC Classic Finance.


- 39 -

1998 :

Introduced the new logo symbolizing a common corporate identity for the ICICI Group.

ICICI announces takeover of Anagram Finance.

1999 :

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

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

American Depositary Shares.

2000 :

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

ICICI Bank announces merger with Bank of Madura.

2001 :

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

2002 :

Moodys' assign higher than sovereign rating to ICICI.

Merger of ICICI Limited, ICICI Capital Sercvices Ltd and ICICI Personal Financial

Services Limited with ICICI Bank.


- 40 -

ICICI Bank is India's second-largest bank with total assets of about Rs.125,229 crore and

a network of over 450 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 specialised subsidiaries and

affiliates in the areas of investment banking, life and non-life insurance, venture capital

and asset management. ICICI Bank's equity shares are listed in India on stock exchanges

at Kolkata and Vadodara, the Stock Exchange, Mumbai and the National Stock Exchange

of India Limited and its American Depositary Receipts (ADRs) are listed on the New

York Stock Exchange (NYSE).

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

institution, and was its wholly-owned subsidiary. ICICI's shareholding in ICICI Bank was

reduced to 46% through a public offering of shares in India in fiscal 1998, an equity

offering in the form of ADRs listed on the NYSE in fiscal 2000, ICICI Bank's acquisition

of Bank of Madura Limited in an all-stock amalgamation in fiscal 2001, and secondary

market sales by ICICI to institutional investors in fiscal 2001 and fiscal 2002. ICICI was

formed in 1955 at the initiative of the World Bank, the Government of India and

representatives of Indian industry. The principal objective was to create a development

f i nan c i a l 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


- 41 -

entities, and would create the optimal legal structure for the ICICI group's universal

banking strategy. The merger would enhance value for ICICI shareholders through the

merged entity's access to low-cost deposits, greater opportunities for earning fee-based

income and the ability to participate in the payments system and provide transaction-

banking services. The merger would enhance value for ICICI Bank shareholders through

a large capital base and scale of operations, seamless access to ICICI's strong corporate

relationships built up over five decades, entry into new business segments, higher market

share in various business segments, particularly fee-based services, and access to the vast

talent pool of ICICI and its subsidiaries. In October 2001, the Boards of Directors of

ICICI and ICICI Bank approved the merger of ICICI and two of its wholly-owned retail

finance subsidiaries, ICICI Personal Financial Services Limited and ICICI Capital

Services Limited, with ICICI Bank. The merger was approved by shareholders of ICICI

and ICICI Bank 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.


- 42 -

D. COMPETITORS

ICICI Web trade is providing share trading facilities. The ICICI was the 1st in India to

introduce concept of online share trading. Now in the market there are few players who

are providing the share trading facilities. Some of them are mentioned below who are

providing some competition in the market.

1. HDFC Securities:-

HDFC bank is also one of the growing bank in India. It has also given new definition to

banking services with providing extra services than the traditional banking services.

HDFC was in housing finance initially but in last few years it has widen its scope of

working area. It has entered in almost all the sectors in which ICICI is dealing.

HDFC is providing the demat account to its customers. The HDFC is not providing the

online share trading like ICICI. Here it stays slightly behind the ICICI bank.

2. Kotak Street :-

Kotak Street is also emerging as a good competitor to all the share trading service

providing company. It is also entering in the all the financial services like the ICICI and

HDFC bank. The Kotak Street is relatively new compared to ICICI and HDFC in the

field of share trading. Initially when the Kotak group had not entered in banking field it

had collaboration with HDFC for the saving accounts of the customers who had or

wanted to open the share trading account with the Kotak street.


- 43 -

But now as the Kotak group has its own bank, all the saving accounts are opened in the

Kotak bank. The Kotak group has also entered in the field of insurance with name ―OM

KOTAK MAHINDRA LIFE INSURANCE‖. The Kotak group has also entered in the

MUTUAL FUND sector also.

3. India bulls

India bulls is also one of the company which is providing the share trading facility. It is a

company which is providing the share trading facility only. It does not provide any

saving account facility to its customer.


- 44 -

E. HOW IS ICICI BETTER THAN

OTHERS?

You can do on-line share trading through any sites. There are various sites available for

trading. But ICICIDirect has some unique features. The ICICIDirect is a leading site

available not only for trading but also for other investment opportunity.

Why you should do your trading through ICICIDirect.Com? The reasons for using

ICICIDirect for trading are as explained as under.

ICICI is having 3-in-1 unique package, means you are having all the accounts (saving

bank a/c., demat account and online share-trading account) with ICICI only. Most of

other online share trading provider uses savings bank account of other company. On the

other hand ICICI has its own. You can very easily transfer your savings bank account

money to trading account. While in case of other on-line share trading provider give you

their account number in which you have to first deposit your money and then you can do

your trading.

ICICI is having the whole package and that is why you do not require to retaining your

shares with DP‘s pool account or any type of beneficiary account. Your all share are in

your demat account only.

Some online share providers are demanding deposit. You have to maintain that deposit

till your account is continue. On the other hand you have to just maintain a simple 5000

Rs. Balance in your savings bank account on which you will get interest. Moreover you

will get cheque book, ATM or Debit Card with the savings bank account.


- 45 -

The main recurring charges in case of trading are custody charges. Most of other DP are

charging more than 1.25% per month, per ISIN. On the other hand ICICI is charging

only 0.75% per month, per ISIN. Means, you will definitely save your charges as the

custody charges are lesser than other providers.

ICICIDirect provides facilities such as breaking news, technical analysis, ceo call, week

in focus, trading in stocks, mutual funds of 14 companies, IPO, GOI Bonds, Future &

Option and many more. Moreover it provides you news from returns and moneycontrol.

You can watch various prices of every script and its quotes and charts for various periods.

ICICIDirect Research is having unique research about various companies. You can get

databases, news, earning estimates, and bird‘s eye view of various companies. You can

also find your best suited investment according to your needs. Moreover you can find

anything about IPO, GOI Bonds as well as Mutual Funds and its latest news. It also

facilitates various tools like tax calculations, savings, retirement and investment planning

and financial management. Moreover your all queries can be solve through customer

service very quickly.

With the help of Margin PLUS order you can trade up to 4 times of your funds

availability, means only 25% margin is required. No other site is providing such type of

facility except ICICIDirect.

The BTST facility provides securities bought on a particular day (i.e. day T) can be sold

by the Client within the period commencing on T+1 day and ending on T + 2 day.

If you want the payment of your stocks same day, you can use SPOT option. With the

help of this option you will get your money on the same day. No other online share

trading provider gives you this facility.


- 46 -

The mobile alerts give you the transaction detail on your mobile phone. So you do not

require to open site every time just for checking the trade. 50 alerts are free and then

after you have to pay only 1 Rs. per alert.

You can also do your trades trough your phone by using Call N Trade which allows you

to call on a local number in your city & trade on the telephone through Customer Service

Executives.

Most of the clients are facing problem after opening an account. ICICIDirect provides a

complete demo facility for trading in equities, future and option. With the help of demo

you will not have any further difficulties for trading.

It also provides stock zone, information about volumes of various scripts, analysis of

various industry with scripts, snapshot, market watch, spot reviews, NAV lists, portfolio

tracker, risk analyzer, asset allocator, stock screener, stock to watch, end of the day

report, market@desktop, market barometer and returns of various stocks.

ICICIDirect is also providing ICICI Value Watch, ICICI Sector Watch as well as

monthly bulletin. With the help of that you can take better decisions for your investment

in stocks.

Most of the other online share trading provider are not giving the facility for trading on

BSE.


- 47 -

F. SWOT ANLYSIS

SWOT analysis is done by all the companies to be aware about the competitor and new

changes in the market. The SWOT analysis leads the company to take strategic decisions.

Company always highlight its strength, try to hide own weakness and in the same way try

to find out strength and weakness of the competitors.

S – Strength

Strength of the ICICI Web Trade is the main feature of the service. As it gives 3 in 1

account to the customer, the ease to trade at your convenient time is the main strength of

the ICICI Direct. Following are some of the strong points of the company.

Convenience of time to trade

Faster transaction

Paperless work

3 in 1 account facility so all work done at one place

Biggest strength of IndusInd Bank is the wide range of products and services

available to be provided to the customers.

The bank has strength of the latest technologies and the most modern banking

channels as net banking and the schemes such as young saver accounts also.

The young and energetic staff of the bank is also one of the strengths.

W- Weaknesses

Weakness of company is fond out to remove it and then make the product or service

better than current status. Each and every product and service has weakness. It is just like

two side of the coin, if you have strength then you have weakness.


- 48 -

The weakness of the ICICI Direct.com can be said its high charges compared

to other companies.

O – Opportunity

Opportunity of the company is with the growth of volume of share trading and if

company decides to reduces the prices to some extent then a new market segment will

come up as a customer of the service.

Junagadh, being the big industrial city of Saurashtra region the Bank has

enough of opportunities to flourish its business here.

ICICI Bank can also grab the opportunity of establishing its market in the

nearby towns and villages by keeping their ATM machines and also by

sending their marketing executives to these remote places on some specific

days.

T – Threat

Threat for the company can be considered as following.

Growing competition

Change in government rules which is negative for stock market

Low prices of local brokers

Low awareness of computer in public

The other threat of the new entrants in the market will take up the share from

them.

Now a days many of the financing companies are entering the Junagadh‘s

market, which is one of the biggest threat for the Banks as they provide the

finance to the customers at very less rates and also at the quickest.


- 49 -

MARKETING

DEPARTMENT


- 50 -

INDEX

OF

MARKETING DEPARTMENT

Sr.

No.

Particulars Page

No.

1 Introduction 53

2 Organizational structure 55

3 Products 57

4 Product Life Cycle 81

5 Promotion- Mix 83

6 Marketing Strategy 87


- 51 -

1.INTRODUCTION

As we know today in this competitive era marketing plays an important role for any

business to be with the market. As each and every small business should know skill of

marketing as it is one of the most important part of management. So for every company it

is important to have separate marketing department. We can define marketing as an

activity of satisfying human ned by process of exchanging goods and services from

producer to consumers. The success of organization depends upon the marketing activity.

M ar k e t i ng involves activities related to the products. The activity which are done to

satisfy customer need in better way, it includes activities such advertising, publicity,

marketing research, distribution of products and services, sales promotion efforts etc. in

ICICI Web Trade at main branch Rajkot the marketing of its product is done by the AUM

& UM and schemes provided by the company.

Market Performance of ICICI Bank

In year 2003-04 ICICI Bank d ev e l op ed in the business of the bank, ICICI Bank has

surpassed HDFC Bank, a major player in the home loan market. It has a market share of

about 27% of the total market of Rs.500,000 cr. The Muthoot Group, one of the largest

non-banking financing companies, has signed a memorandum of understanding with

ICICI Lombard, a subsidiary of ICICI bank, to enter into the general insurance

distribution market. In September 2004, Mutual Funds increased their holdings in ICICI

Bank. The major investors being Franklin Templeton, UTI Mutual Fund and HDFC

Mutual Fund.


- 52 -

ICICI has launched the ―Easy Deposit Card‖ which charges an interest of 0.99% per

month, the lowest of the interest rates charged by any bank. The card is issued against a

fixed deposit, which effectively makes it secured loan. This sets it apart from the regular

credit cards, which take the form of unsecured credit. In September 2004, ICICI bank

initiated talks with private equity investors and foreign banks to sell its 20.44% stake in

Federal Bank.

The bank has increased its international presence by inaugurating a representative branch

in Dhaka in August 2004. The Dhaka office would facilitate the trade relationship

between the two countries and enable the bank to increase its participation in India‘s

financial transactions with Bangladesh. At that, time bank launched a powerful banking

service package, called ―Hello Canada Newcomers Account‖ designed to provide instant

access to banking services in Canada to Indians migrating to that country.

ICICI Bank has launched an interactive mobile banking service in India in association

with India‘s largest mobile service provider, Reliance Infocomm.

The growth in net interest income was due to the fall in interest expenses. Another strong

reason for the profits of the bank is its strong advance in the retail business.


- 53 -

2.ORGANISATIONAL STRUCTURE

Marketing department consist of different persons with their unique position. Each and

every company has its own marketing department. Marketing organization is consisting

of people, activity, authority, responsibility and relationship for the purpose of achieving

marketing objectives.

ICICI Web Trade at Rajkot main branch is working at lower level means it is not a big

company and so it does not have its own different marketing department. Here ICICI

Web Trade Bombay is making the policy related to marketing and the branch is following

that policy.

COUNTRY HEAD (MR. KARTIKEYAN)

REGIONAL HEAD (MR. ASHISH RATHOR)

UNIT MANAGER (MR. RONAK THAKKAR)

ASSISTANT UNIT MANAGER (MR. JAYESH VASANI)

TRAINEES


- 54 -

ICICI Web Trade is having a simple organizational structure. As the structure is simple

the authority and responsibility is also clearly defined and smooth working of the

organization is possible. This structure is really helpful for the company to introduce any

new product as a clear communicational channel is existing in the company.


- 55 -

3.PRODUCTS

ICICI Web Trade is mainly dealing with share, stock, government bond, mutual fund and

IPO (initial public offer). ICICI Web Trade is providing mainly three type of product

with different facilities. The core product of ICICI Web Trade is demat account. ICICI

Web Trade is providing the core product with extra service of online share trading to its

customer as per their requirement.

There are three type of account in ICICI Web Trade. They are as follow.

1. Simple demat account

2. Wise investment

3. Direct.com

1. Simple Demat Account:-

The simple demat account is the most simple form of ICICI Web Trade product. It gives

a demat account to account holder. The customer can purchase and sell the share,

government bond, and debenture. In this account the customer is suppose to deal in share

market with the help of broker.


- 56 -

Following are the regulatory aspects of simple demat account.

Customer can deal only with help of broker.

No online share trading is allowed.

Account opining charge is Rs. 750

If customer does not have saving account in ICICI Bank then he or she has to

deposit Rs.5000 in the bank.

Statement of demat account is given free of cost to the customer per quarter

and if he or she wants monthly statement than Rs. 200 is charge per annum.

Charges :


Per purchase customer has to pay 0.02% of the amount of purchase. Minimum

Rs. 20

Per sale customer has to pay 0.04% of the amount of sale. Minimum Rs. 20

Maintains charge of demat account is Rs. 500 per annum.

Script maintains charge 0.75 paisa per script per month.

Trade rejection charge is Rs. 50 per transaction rejected.

Limitation:-

Online share trading is not available.

Transaction speed is very low compare to online share trading.


- 57 -

Other competitors are providing the same service at lower rate.

2. Wise Investment Account:-

The Wise Investment Account is some what advanced version of simple demat account.

This account gives the customer the freedom of doing online trading in Government

bonds, Initial Public Offers and Mutual funds. Again here the main trading system is

through the broker only.

Charges:-


Per purchase customer has to pay 0.02% of the amount of purchase. Minimum

Rs. 20

Per sale customer has to pay 0.04% of the amount of sale. Minimum Rs. 20

Maintains charge of demat account is Rs. 350 per annum.

Script maintains charge 0.75 paisa per script per month.

Trade rejection charge is Rs. 50 per transaction rejected.

A saving account in ICICI BANK is necessary.

Limitation:-

Online trading in equity is not allowed.

Transation time is longer than online trading.


- 58 -

Portfolio is managed by broker, not by our self.

Unnecessary investment of Rs 5000 as balance in saving account.

3. Direct.com:-

The most advanced version of share trading is ―Direct.com‖. It allows the trading through

internet and gives totally paperless work. It is the most effective way of doing the share

trading. ―Direct.com‖ allows the customer to work at his own. Means it removes the

broker and a terminal is given in hand of customer.

Charges:-

Rs. 750 is taken as lifetime registration charge for using

ICICIDIRECT.COM.

Rs 5000 are to be maintained as quarterly average balance in saving account.

The brokerage is taken on TURNOVER of three month. As the turnover

increase, brokerage rate comes down. The rate varies from 0.75 paisa to 0.25

paisa.

Limitation:-

High brokerage charge for lower turnover


- 59 -

HOW WEBTRADE WORKS

Business Head

Managing Director

National

Product Manager

Regional

Product Manager

Area

Unit manager

Segment

Manager

Branch Banking

CORPORAT

E

N.R.I

H.N.I


- 60 -

The chart shows how the company is working. As you can see, main authority of ICICI

WEBTARADE is MANAGING DIRECTOR. He is responsible for the performance of

WEBTRADE. Under him, there is a one BUSINESS HEAD.

Under him, N.P.M. is there to have a watch on different regions of the nation.

After N.P.M., main authority of webtarde is now R.P.M., who is accountable for the

whole region‘s business performance. Under R.P.M., A.U.M. is there to keep a watch on

the working and performance of whole area.

In Gujarat region, there are main three parts. Gujarat region, south Gujarat and saurashtra

region. In each office, which is under R.P.M., they all are in mainly retail business. Main

activity of WEBTARDE is business sourcing you can say it mainly deals with NEW

CUSTOMER AQUIZITION OR THE PROCESS OF ACCOUNT OPENING. There are

main four pats in an n office. First is Branch Banking, you can say this part as back

office. Back office is doing work to maintain different activities of WEBTRADE. It

include customer care, arranging different activities for customer sessions, making list of

potential customers, dispatching currier to the head office, listing different mails of

customers etc.

Another one of the most important part of WEBTRADE is CORPORATES. These

people are really the backbone of the unit. They are divided in to two parts. First, are

executives and second is cold calling from the tale- executives. Persons who are

executives of WEBTRADE, they are working mainly in two ways. First is through

appointments of customers and second is through Leads. They take a visit of potential

customers and than demonstrate the product. Under each division of CORPORATE,

SEGMENT MANGER is main accountable person. Under him, unit manager of a branch


- 61 -

is there. Under him leaders of different teams are working. The T.L. plans all the

activities regarding cold calling or leads. They decide the appointments and give leads to

executives. They give training to their executives and teach them different strategies to

take on.

Another part of the WEBTARADE is H.N.I. They are high networking individuals, who

are very important for the company. These are very important customers who give a big

business to the company.

N.R.I. is a part, in which, the executive of WEBTRADE, is concern with new account

opening of N.R.I. and the executive of ICICI is dealing with problems and queries of the

customers.


- 62 -

PRODUCTS :-

ICICIdirect.com

MUTUAL FUNDS

DERIVATIVE

S

IPOs

FUTURES

OPTIONS

Purchase

s

Redempti

on

BOND

S

EQUITY

Cash

Margin

BTST

Spot

Margin PLUS

SIP & SWP

Switch in /out

Transfer

in


- 63 -

ICICI direct.com

2) Trading

Quotes

Charts

News

1) Home page

Market

Commodit

y

Breakin

g

News

Portfolio Tracker

Watch list

Net Worth

Portfolio Alerts

3) News

Sector Watch

Pick of the Weak

Technical Analysis

ICICIdirect learning dictionary


- 64 -

Icicidirect.co

m

4) Market page 5) Research

Page

Weakly Overview

Super

Movers

Mega

Movers

End of the

day

reports

My quotes

My Research

Compan

y

Snapshot

Multex

Global

Industry News

Monthly Gainers

Stock Screener

Corpor.

Info bank

Market@Deskto

p


- 65 -

6) Personal

Finance

page

7) Customer

Service

page

Risk Analysis

Asset Allocator

Customer

Updates

Bills & Acc

Change

Passwor

d

ICICIdirect.co

m

Custome

r

Tools

Fee Schedules

Demo

Direct Alert

View Point


- 66 -

1. Trading in shares:

ICICIdirect.com offers you various options while trading in shares.

Cash Trading : This is a delivery based trading system, which is generally done with the

intention of taking delivery of shares or monies.

Margin Trading : You can also do an intra-settlement trading up to 3 to 4 times your

available funds, wherein you take long buy/ short sell positions in stocks with the

intention of squaring off the position within the same day settlement cycle.

MarginPLUS Trading : Through MarginPLUS you can do an intra-settlement trading

upto 25 times your available funds, wherein you take long buy/ short sell positions in

stocks with the intention of squaring off the position within the same day settlement

cycle. MarginPLUS will give a much higher leverage in your account against your limits.

Spot Trading : This facility can be used only for selling your demat stocks which are

already existing in your demat account. When you are looking at an immediate liquidity

option, 'Cash on Spot' may work the best for you, On selling shares through "cash on

spot", money is credited to your bank a/c the same evening & not on the exchange payout

date. This money can then be withdrawn from any of the ICICIBank ATMs.

BTST : Buy Today Sell Tomorrow (BTST) is a facility that allows you to sell shares

even on 1st and 2

nd day after the buy order date, without you having to wait for the receipt

of shares into your demat account.

CallNTrade®: CallNTrade® allows you to call on a local number in your city & trade

on the telephone through our Customer Service Executives. This facility is currently

available in over 11 major states across India.


- 67 -

Trading on NSE/BSE : Through ICICIdirect.com, you can trade on NSE as well as

BSE.

Market Order: You could trade by placing market orders during market hours that

allows you to trade at the best obtainable price in the market at the time of execution of

the order.

Limit Order: Allows you to place a buy/sell order at a price defined by you. The

execution can happen at a price more favorable than the price, which is defined by you,

limit orders can be placed by you during holidays & non-market hours too.

2. TRADE IN DERIVATIVES:

FUTURES

Through ICICIdirect.com, you can now trade in index and stock futures on the NSE. In

futures trading, you take buy/sell positions in index or stock(s) contracts having a longer

contract period of up to 3 months.

Trading in FUTURES is simple! If, during the course of the contract life, the price moves

in your favour (i.e. rises in case you have a buy position or falls in case you have a sell

position), you make a profit.

Presently only selected stocks, which meet the criteria on liquidity and volume, have

been enabled for futures trading.

Calculate Index and Know your Margin are tools to help you in calculating your margin

requirements and the index & stock price movements. The ICICIDIRECT UNIVERSITY

on the HOME page is a comprehensive guide on futures and options trading.


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OPTIONS

An option is a contract, which gives the buyer the right to buy or sell shares at a specific

price, on on the other hand, before a specific date. For this, the buyer has to pay to the

seller some money, which is called premium. There is no obligation on the buyer to

complete the transaction if the price is not favorable to him.

To take the buy/sell position on index/stock options, you have to place certain % of order

value as margin. With options trading, you can leverage on your trading limit by taking

buy/sell positions much more than what you could have taken in cash segment.

The Buyer of a Call Option has the Right but not the Obligation to Purchase the

Underlying Asset at the specified strike price by paying a premium whereas the Seller of

the Call has the obligation of selling the Underlying Asset at the specified Strike price.

The Buyer of a Put Option has the Right but not the Obligation to Sell the Underlying

Asset at the specified strike price by paying a premium whereas the Seller of the Put has

the obligation of Buying the Underlying Asset at the specified Strike price.

By paying lesser amount of premium, you can create positions under OPTIONS and take

advantage of more trading opportunities.

3. Investing in Mutual funds:

ICICIdirect.com brings you the same convenience while investing in Mutual funds also -

Hassle free and Paperless Investing.


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With the inclusion of Standard Chartered MF, you can now invest on-line in 10 mutual

Funds through ICICIdirect.com. Prudential ICICI MF, JM MF, Alliance MF, Franklin

Templeton MF, Sundaram MF, Birla Sun Life MF, HDFC MF, Principal MF and IL &

FS MF are the Mutual Funds available for investment. You can invest in mutual funds

without the hassles of filling application forms or any other paperwork. You need no

signatures or proof of identity for investing.

Once you place a request for investing in a particular fund, there are no manual processes

involved. Your bank funds are automatically debited or credited while simultaneously

crediting or debiting your unit holdings.

You also get control over your investments with online order confirmations and order

status tracking. Get to know the performance of your investments through online

updation of MF portfolio with current NAV.

ICICIdirect.com offers you various options while investing in Mutual Funds:

Purchase: You may invest/purchase Prudential ICICI MF, JM MF, Alliance MF,

Franklin Templeton MF, Sundaram MF, Birla Sun Life MF, HDFC MF, Principal MF, IL

& FS MF and Standard Chartered MF without the hassles of filling application forms.

Redemption:In addition to giving hassle-free paperless redemption, ICICIdirect.com

offers faster liquidity. You can redeem the mutual fund units through ICICIdirect.com.

The money will be credited to your bank account automatically 3 days after the order

placement date.

Switch: To suit your changing needs you may wish to shift monies between different

schemes. You can switch your monies online from one scheme to another in the same

fund family without any hassles.


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Systematic Investment plans (SIP): SIP allows you to invest a certain sum of money

over a period of time periodically. Just fill in the investment amount, the period of

investment and the frequency of investing and submit. ICICIdirect.com will do the rest

for you automatically investing periodically for you.

Systematic withdrawal plan: This allows you to withdraw a certain sum of money over

a period of time periodically.

Transfer-in: You can convert your existing Mutual funds into electronic mode through a

transfer-in request.

3. IPOs and Bonds Online:

You could also invest in Initial Public Offers (IPOs) and Bonds online without going

through the hassles of filling ANY application form/ paperwork.

Get in-depth analyses of new IPOs issues (Initial Public Offerings) which are about to hit

the market and analysis on these. IPO calendar, recent IPO listings, prospectus/offer

documents, and IPO analysis are few of the features, which help you, keep on top of the

IPO markets.

5.ContentFeatures:

There are a host of features on ICICIdirect.com that shall help you make informed

investment decisions.

We provide you with the indices of major world markets, nifty futures and ADR prices

of Indian scripts. Get daily share prices of all scripts, monthly and yearly high/lows etc

through Market Watch.


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Get breaking news from CNBC and Reuters. Catch a glimpse of News Headlines

through our scrolling Direct News Headlines.

Get a snapshot of the latest developments in the markets through the day using Market

Commentary. You can get weekly snapshots also. Use Pick of the week, which focuses

on fundamental stocks with sound prospects.

Catch interviews, reactions and comments from industry leaders with CEO Call. Track

the movement of leading scrip‘s within a sector across 12 sectors using

Market@Desktop.

Equip yourself with our barometers. Market Barometer gives you in-depth information

of the weightages of shares on Nifty and Sensex. Get a glimpse of the performance of

various industry sectors through Industry Barometer.

Direct Technical Charts offer interactive charting with advanced indicators. Get a bird's

eye view of over 5000 companies at a single click using Company Snapshot. Glance

through analyst recommendations using Multex Global Estimates.

In case, you are not too comfortable with share trading, try our Learning Centre, which is

a tutorial on investments and My Research, that helps you to research a stock better.

6. Personal Finance:

Use our Personal Finance section and get hold of tools that can help you plan your

investments, retirement, tax etc. Analyse your risk profile through the Risk Analyzer and

get a suitable investment portfolio plan using Asset Allocator.


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7. Customer Service Features:

With 'ICICIdirect Customer Tools & Updates' you can trouble shoot all your problems

online.

Address your trading queries on-line through "Easy Mail". You can view and change

your profile or password on-line through General Profile option.

Get details of ICICI Centers, our sales and service offices, across India through branch

locator.

View your Account Statement and Bill Summary of your transactions online using bills

&accounts.

View your Digital Contract Notes instantly. View various charges through the Fee

Schedule option.

Give your feedback or viewpoint through the Viewpoint online.

Enroll yourself for various ICICIdirect Workshops through Register for Customer

Sessions.

Introduction of new products and services

ICICI WEB TRADE introduced some innovative products by using their strong

technological capabilities through different schemes for customers. These schemes are so

unique and having different type of advantages for different customers. S 1 to S 9

schemes.


- 73 -

Another new thing about this company is that, they are having variety of unique products

for each type of investor. Either the customer is a day trader or an investor, company is

having products like MARGIN, MARGIN PLUS, BUY TODAY SELL TOMMORROW

(BTST), CALL AND TRADE ,CASH ON SPOT, CASH TRADING, IPO‘S AND MF,

SYSTEMATIC INVESTMENT PLAN, PORTFOLIO TARCKER etc.

Dematerialization of Securities (Demat):-

Dematerialization is the process of converting the securities held in physical form

(certificates) to an equivalent number of securities in electronic form and crediting the

same to the investor’s dematting account. Dematerialized securities do not have any

certificate numbers or distinctive numbers and are delta only in quantity i.e. the securities

arefungible.

Dematerialization of your holdings is not mandatory. You can hold your securities

either in demat form or in physical form. You can also keep part of your holdings (in the

same scrip) in demat form & part in physical form. However, a select list of securities

announced by SEBI can be delivered only in demat form in Stock exchange connected to

NSDL.

SELL DEMATERIALISED SECURITIES:-

You can sell your dematerialized securities in any of the stock exchanges

linked to NSDL through a broker of your choice.

You give a delivery instruction to your DP for debit of your depository

account and credit of your broker‘s clearing member account.


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On the pay-in day, your broker gives instruction to his DP for delivery to

clearing corporation/clearing house of the relevant stock exchange

The broker receives payment from the clearing corporation/clearing house.

You receive payment from the broker for the sale in the same manner you

would receive payment for a sale in the physical mode.

BUY DEMATIRIALIZED SECURITIES:-

You purchase securities in any of stock exchanges connected to NSDL

through a broker of your choice and make payment to your broker. Make sure

you tell your broker you want only demat shares.

Broker received credit in his clearing account with his DP on the day of

payout. He can immediately transfer these securities to your depository

account, provided your account is already active.

Broker gives instructions to his DP to debit his clearing member account and

credit your depository account.

Rematerialization:-

Rematerialization is the process of converting the securities held in electronic form in a

demat account to an equivalent number of securities in physical form (certificates) after

debiting the same from the demat account.


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The Internet revolution has been changing the fundamentals of our society. It shapes the

way we communicate and the way we do business. It brings us closer and closer to vital

sources of information. It provides us with means to directly interact with service-

oriented computer systems tailored to our specific needs; therefore, we can serve

ourselves better by making our own decisions.

You may know that, historically, the share bazaar has usually given wise investors

higher returns on their money over the long term than any other form of investment.

And in these times of much lower interest rates on fixed income investments, shares are

probably looking more and more attractive as a place for you to put your money.

If you have done your homework, you know that the share bazaar is volatile. You know

that while many people have made fortunes overnight, many have also lost them just as

rapidly.

It is hugely important - critical even - that you go into the share market with your eyes

open. That you study it, know what makes it tick, understand what experts are talking

about when they discuss shares.

Unfortunately, many of the best experts talk a language all their own. It is very difficult

for someone who has not spent time learning that language to figure out what they are

saying.

Even more unfortunate is that by the time you learn the basics, you could wind up broke.


- 76 -

Someone who knows what the dangers are knows how to get to the good stuff. Who

teaches you what the tools are and how to use them. Who can show you how to get the

information you need, and how to make it work for you. Who can take care of you until

you are ready to take care of yourself?

You need an expert guide, educator, personal trainer and facilitator.

Who can gives you the full benefit of its experience technology-based tools and research,

all modified and customized for the novice.

Who can gives you powerful, easy-to-use tools, on the web, or via ordinary phone lines,

that will help you as a stock market investor.

It teaches you with systematic demos at crucial stages - at the beginning, and when you

are ready to do your first trade -. Moreover, it gives you the services of a dedicated

customer support team.

It continues to support you with research by experts, delivered to you in simple, easy to

understand fashion.

ICICI direct.com makes the most of state-of the-art technology to deliver power, speed

and reliability. Through an easy-to-use interface, users are provided with the same tools

and advantages that the professionals enjoy.


- 77 -

With access to both the NSE & BSE, you are in the driver's seat when routing your order

to the best price on either of the exchanges. Icici direct.com has sophisticated yet easy to

use point and click order entry interface allows you to react more quickly to the markets

and make better decisions.

Keep an eye on the stocks you care about most with streaming, real-time quotes and

customizable market data. Color-coded price changes help you to spot trends and react to

them quickly.


- 78 -


- 79 -

4.PRODUCT LIFE-CYCLE

The concept of Product Life Cycle is very important for any company to decide about

future of its product. As a human takes birth, grows up, becomes mature and at the end

die, products also have the Product Life Cycle. The company considers the stage of

Product Life Cycle and then makes the promotion policies

1. 2. 3. 4.

Intoduction Growth Matuirty Decline

1. Introduction Stage:-

This is the stage when the product is just entering in the market. In this stage the

company needs to make the maximum promotional efforts and advertisement to establish

the product in the market.


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2. Growth stage:-

This is the stage where the market is aware about the product and now the sales and profit

are increasing. This stage allows the company to have a grip on the market.

3. Maturity Stage:-

The most important and longest part of the Product Life Cycle is the maturity stage. As in

this stage the company is getting the most number of the customer and the market share

of the company is stable. Now company starts innovating its product

4. Decline stage:-

This is the stage where the product has lost its attractiveness and now people do not

prefer the product. Now the profit is down and sales are also declining.


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5. PROMOTION-MIX

As we know in today‘s world having good quality product is not enough. As per the

Marketing concept – ―Even though your product is the best, people will not buy enough

of it, if enough efforts are not made to sell the product to the customer‖ So the marketing

has become an important part of the corporate world.

The marketing is mainly concerned with the manner in which a company is able to sale

its product or services. The ICICI Web Trade is engaged with the marketing of demat

accounts and its major policies are made by the head office at Mumbai. At Rajkot branch,

local stalls are done at various places to make promotion at local level

Advertisement

Sales Promotion Publicity

Personnel Selling

Promotion Mix


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Advertisement:-

Advertisement is one of the important parts of promotion policy of the company. As we

know, the advertisement has become very necessary for any company to survive in this

thought cut competition. ICICI Web Trade is not having separate television

advertisement but as a part of ICICI, indirect advertisement is done. ICICI Web Trade is

targeting computer user as their target market, so its main advertisement is done through

internet.

Media:-

Media means ―The Way‖, through which the company is spreading its message. ICICI

Web Trade is using the Internet as its media which is one of the fastest media in today‘s

world.

The ICICI Group is making advertisement in many media. Following are some of it.

Television

News paper

Hoardings

Magazine

Broshers

Budget:-

Budget means the estimated amount to be invested behind any investment. The

advertisement budget is mainly prepared by the head office and advertisement in

television and national news paper is given by the head office. Local news paper

advertisement is given by the branch.


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Types:-

There are many types of advertisement available to any company in today‘s world. The

company is using the different type of advertisement at different stage of product life

cycle.

The company is making use of different types of advertisement at different phases of the

product life cycle. Informative advertisement is done at introduction stage as it create

awareness in public about the product. Persuasive advertisement is made in introduction

stage to create preference in mind of customer over the competitors‘ brand or product.

Competitive advertisement is made to make comparison between company product and

competitor‘s product at growth stage of the product. Reminder advertisement is made at

maturity stage of the product. Here the company has already established itself in the mind

of customer and general public.

Sales promotion:-

Sales promotion is a key ingredient in marketing campaigns. It consists of a diverse

collection of incentive tools, mostly of short term which is designed to stimulate quicker

or greater purchase of a product.

Advertisement offers a reason to buy and sales promotion offers an incentive to buy.

Sales promotion tools [ for consumers ]

Samples

Coupons

Cash refunds

Prices off

Demonstrations


- 84 -

Sales promotion tools [for traders]

Prices off

Advertising and display allowances

Free goods

ICICI Web Trade is providing the sales promotion in following ways

Account opening charge refund if customer has any ICICI product which is 6

months old.

Demonstration of product is made at bank as well as out of bank at regular

interval by executives.

Personal selling

As ICICI is selling the service and not a product , personal selling is more effective and

practical than other measures of increasing sale. The mouth to mouth publicity of the

service is the best publicity a company can get so to satisfy each and every customer is

priority of the company.

ICICI executives approaches to the persons who have made query about the service and

they try to explain them each and every aspect of the service and its features.


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6. MARKETING STRATEGY

Competing on Valuable Resources

Every bank has a collection of physical and intangible assets and capabilities that it has

developed over a period. ICICI is having such unique stock of resources for its

competitive advantage.

One of the ways in which a resource becomes inimitable is due to physical uniqueness.

Physical location of a branch of bank in the heart of the financial centre of any city is a

unique resource that cannot be replicated. Another example of an inimitable resource is a

strong Brand name. Even if a competitor spends billions of rupees, it will find it difficult

to acquire the trust and brand equity that customers associate with.

Scarcity: For the resource to be valuable, it should be scarce or rare. A prime example

of such resources is the Human Resources. For a service industry such as banking where

human resources form a significant source of value addition, possession of excellent

quality work force generates a key competitive advantage.

ICICI WEB TRADE is having such skilled human resources.

ICICIWEBTARDE see itself a very strong player of the market. As per Mr. N

VAGHUL, the chairperson, the financial sector will play a crucial role in India‘s

potential.

Mobilizing resources from households and canalizing these resources into areas identified

as development priorities was the main strategy ICICI adopted. Because of their powerful

resources of technology as well as human resource, they can compete in this global era.


- 86 -

―We have a strong focus on communicating with our investor to explain our strategy and

performance and understand their perspectives. Our ability to raise capital and the

confidence that our investors have placed in us over the years have been critical to our

growth and new business initiatives.‖

Said KALPANA MORPARIA, DEPUTY MANAGING DIRECTOR of ICICI.

As far as marketing is concern, with ICICI Bank, we all know that how aggressively the

marketing activity of ICICI has done. Through different advertisements, through a very

strong background of technology and innovative product line.

ICICIWEBTRADE is having separate Marketing Division enriched with marketing

experts. As far as ICICIdirect.com is concern, the Regional Product Manager takes all the

decisions or in other word, you can say a branch head is the key person how to do

different activities regarding marketing.

The main product of ICICIWEBTRADE is an online account, and the unit is having

number of executives with proper training. These persons go in field and demonstrate the

product.


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HUMAN

RESOURSE

MANAGEMENT


- 88 -

INDEX OF HRM

Sr. No. Particulars Page No.

1 Introduction 91

2 Organizational Structure 93

3 Human Resource Planning 95

4 Recruitment Sources 96

5 Selection Process 98

6 Training & Development Policy 102

7 Promotion & Transfer Policy 104

8 Welfare Policy 105


- 89 -

1. INTRODUCTION

Human Resource Management is one of the most important functional areas of any

company. As we know ―Even if we have latest technology, equipments and best product

in the market, but do not have proper human force to make effective utilization, it is in

vain.‖ So H.R.M. has become one of the most important aspects of any company.

H.R.M. means management of human resource, making their proper development as and

when required. Previously it was known as ―Personnel Department‖. It had a limited

scope of recruiting the human force as and when required, but as the time has passed the

value of ―Human‖ has increased. Now management is considering the human as human

and not a factor of production.

One of the world famous person Mr. Henry Ford have said that ―YOU MANAGE YOUR

MEN AND YOUR MEN WILL MANAGE ALL OTHER THINGS.‖ Today this concept

has been accepted by most of the companies working in India as well as all over the

world. Now all companies are interested in maintaining and developing their existing

manpower.

H.R.M. consists of all the activities related with the human. It includes the areas like

recruitment, selection, placement, induction, training, development, promotion, transfer,

demotion, wage and salary etc… This all aspects are very crucial aspect for any company

as its main input is human in any production or service industry.

For a service providing company its work force is most important as they are

―tengiblising the intangible service to make its sale.‖ ICICI being a service providing

company is having more concerned with the human force. ICICI is India‘s no. 1 private


- 90 -

bank and has large number of employees. The ICICI has following strategies towards the

human resource.


- 91 -

2. ORGANISATIONAL STRUCTURE

‗Organization‘ is a group of people working together co-operatively under ‗authority‘

towards achieving goals and objectives that mutually benefit both, organization and

employees. There is a specific flow of authority and responsibility from top to bottom.

This is defining ―who is responsible to whom.‖ This is known as organizational structure

of the company. The organizational structure helps in better management and control

over the activities.

The main functions of organizational structure are as follow.

Task Accomplishment.

Delegation of Authority.

Proper span of supervision.

Proper communicational channel

Above all functions are performed through organizational structure of the company. The

structure helps to achieve the organization‘s goal more effectively and efficiently.

COUNTRY HEAD (MR. KARTIKEYAN)

REGIONAL HEAD (MR. ASHISH RATHOR)

UNIT MANAGER (MR. RONAK THAKKAR)

ASSISTANT UNIT MANAGER (MR. JAYESH

VASANI)

TRAINEES


- 92 -

This organization structure is for Rajkot branch. The structure remains the same for other

branch also. The regional head is appointed per state and unit manager is appointed per

district. If needed there can be more than one unit manager in one district. Assistant unit

manager are appointed per branch. AUM appoints number of trainees as per requirement

in the market.


- 93 -

3. HUMAN RESOURCE PLANNING

HRP means making planning about human resource. It includes managing human force

and making arrangement for future need also, so that proper employment is maintained.

HR manager need to estimate future need and arrange for suitable candidate when

needed. HRP is defined by many authors in different ways. Following is one simple

definition.

COLEMAN:

―The process of determining manpower requirement and the means for meeting those

requirements in order to carry out the integrated plan of the organization.‖

Benefits:-

Better view to top management over the human resources.

Better utilization of available human resource.

Forecast of future need for employees may be done.


- 94 -

4. RECRUITMENT RESOURCES

According to YODER, ―Recruitment is a process to discover the sources of manpower to

meet the requirement of the staffing schedule and to employ effective measures for

attracting that manpower in adequate number to facilitate effective selection of an

efficient working force.‖

ICICI Web Trade has two recruitment resources.

Internal resource

External resource

Internal resources:-

Internal recruitment means filling the vacancy by existing employees. It includes

shuffling of employees by transfer, promotion, demotion etc. In ICICI Web Trade post of

AUM and UM are filled by promotion given to trainees and AUM respectively.

Benefit:-

It improves morale of employee.

Better evaluation is possible of present employees.

Promotes loyalty among the employees.

Less costly compared to external recruitment.


- 95 -

Limitation:-

It discourages new person to enter in the company.

If promotion is given on bases of seniority then young talent may get

discouraged.

External resources:-

Sometimes the requirement of the company does not match with the current employees,

the company now have to go for external recruitment. There are many external sources

from where a company can get the suitable candidates.

Following are some of the sources.

Colleges / campus recruitment

Press advertisement

TV advertisement

Employment agencies

External recruitment means recruiting a person from out side. This is used mainly for

trainees. They are supposed to have minimum education of graduation. Even students of

college are selected by AUM as trainees who have good communicational skill and want

to get marketing experience. Mainly local advertisement is given to fill up the place of

trainees.


- 96 -

5. SELECTION PROCESS

If you are on the verge of completing your Management Education and believe that the

amazing world of Banking is for you, there is no better place to start than ICICI Bank.

Cross-functional movements are strongly encouraged to build capability in each

employee to become a knowledgeable service provider.

To get started, fill in the profile form. They will create a login id number and password in

case of successful registration. Your registration details will be emailed to you on your

specified email ID. You must use the same to log on, to edit your resume and to know

your hiring status in our company.

You can respond directly to a Current Opening or submit your profile into Talent

Database for consideration against future opportunities.

If you have already applied, you can update your resume with the most recent

information or choose to re-apply against a different position.

To improve the selection process for recruitment at all levels in ICICI Bank, They have

carried out an in-depth study of the competencies required to succeed in ICICI Bank.

As per their research, the competencies, which indicated success at the entry level in

ICICI Bank, are:

Drive for results

Process Orientation

Interpersonal Effectiveness


- 97 -

Analytical Thinking

Innovation

Team Effectiveness

In order to assess the same they use a set of three tools –

A Mental Ability Tests (for candidates with 0-2 years of work experience)

a Personality profiling system

The Mental Ability Test gives a fair and objective assessment of candidates‘ skills

in the areas of verbal reasoning, numerical reasoning & diagrammatic reasoning.

These are important skills for the role of an entry-level manager and people who

do well in these tests tend to do well in their jobs at ICICI Bank. The total time

taken in this exercise is 2 hours with each of the three sections lasting 40 minutes

Candidates (at all levels regardless of the number of years of work experience) are

also required to complete the Occupational Personality Questionnaire (OPQ)

before they appear for the interview, the results of which are integrated into our

interview process.

If you are very interested to work in an esteemed organization like ICICI Bank, ICICI

gives you the opportunity to prove yourself.

The link Current Openings will take you to all the jobs that are being sourced at present.

You can click on the jobs to check out the detailed description of the position. Follow the

local newspapers for any regional recruitment.

If you are in the middle of a professional programme, than you can apply for an

Internship with ICICI Bank by,

http://www.icicicareers.com/careers/control/applyagainstjob


- 98 -

Their site http://www.icicicareers.com/www.icicicareers.com click on the link Campus

Recruitment. This will take you to a page where most of the colleges are listed. On

choosing the appropriate college, a resume template appears. Fill that up and choose

Training as the category under Applying for option at the end of the resume builder. On

submitting the form, your resume will be processed as per vacancies in ICICI Bank.

There is no clerical cadre of employees in ICICI Bank. The entry-level employee in our

bank is an Officer.

Selection is a long process commencing from the preliminary interview of the applicants

and ending with the contract of employment. The hiring procedure is not a single act, but

it is a series of methods or steps by which additional information is secured about the

applicant. At each stage fact may come to light which may lead to rejection of the

applicant.

Selection process means a process through which most suitable person is selected from

the applicants. Normally there are written exam, oral test, interviews, and practical test

are taken as selection process. In ICICI Web Trade trainees are selected on basis of

interviews. Normally selection processes are done as per following.

Receipt of application:-

Normally local news paper advertisements are given in news paper for requirement of

trainees. Direct applications are submitted by candidate on web site.

Scrutinisation of application:-

Then the applications are being checked for their approval. Candidates which are capable

of doing job more efficiently are called for the written exam. The applicants are informed

by either mail or e-mail about the date of exam.

http://www.icicicareers.com/www.icicicareers.com

http://www.icicicareers.com/campus_recruit.htm

http://www.icicicareers.com/campus_recruit.htm


- 99 -

Written Interview:-

Normally written exam are not taken by the bank for job of trainee. But for the job of

AUM or administrative officer the exams are taken in major cities. The exam contains

questions on arithmetic ability and general knowledge.

Oral Interview:-

The candidates whose applications are most suitable are called for oral interview.

Interviews are taken by AUM and UM.

Selection:-

The candidate who has cleared above stages is selected for the job.


- 100 -

6. TRAINING AND DEVELOPMENT

Training is a process of learning a sequence of programmed behavior. It is application of

knowledge. It gives people an awareness of the rules and procedures to guide their

behavior in the market. It attempts to improve their performance on current job or prepare

them for an intended job.

Development is a related process. It covers not only those activities which improve the

job performance but also those which bring about growth of the personality. It helps a

person in progress towards maturity and actualization of their personal capacity so that

they become not only good employee but better men and women.

Following are some methods of training which are frequently used.

On the job training

On the job training method are the method which gives the trainees opportunity to work

in an atmosphere which resembles or is itself the real atmosphere. It includes following

methods.

Job instruction training

Vestibule training

Training by experienced workmen

Demonstration

Simulation

Apprenticeship


- 101 -

Off the job training

Off the job training is generally given to provide information to the trainees. This is

useful when the trainee has no experience. This training provides the back ground of

company to the trainee.

Following are few off the job training methods

Lectures

Conferences

Group discussion

Case studies

Role playing

Programmed instructions

Laboratory training.

Newly entered trainees are given training by experienced trainees as well as AUM.

Firstly by AUM they are given full information and knowledge about all product and

then for practical training they are send with experienced trainees to get practical

knowledge about how to talk with customer, face to face as well as on phone. This is

called on the job training which gives practical exposure to trainee.

Development is a related process. It covers not only those activities which improve the

job performance but also those which bring about growth of the personality. It helps a

person in progress towards maturity and actualization of their personal capacity so that

they become not only good employee but better men and women.

For development of AUM bank and AUM themselves are arranging for seminars. UM are

also giving them guidance and regional head also visit the bank and give suggestion for

development if needed.


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7. PROMOTION & TRANSFER POLICY

Promotion:-

Promotion means vertical movement of employee in organization structure. It increases

salary as well as responsibility. Promotion in ICICI Web Trade is based on performance.

Consistent performance of a trainee gives promotion of AUM and consistent AUM

performance lead to UM.

Transfer:-

Transfer means horizontal movement of employee in organizational structure. Transited

in ICICI Web Trade is rare. Normally transfer is not done except it is asked by employee

himself or herself or new branch is opened and bank needs experience person in new

branch.


- 103 -

8.WELFARE POLICY

ICICI Web Trade is now a part of the ICICI bank. The welfare policy of all the

companies working under ICICI group is framed by the ICICI group. It remains the same

for all the employees of the ICICI group. Following are some of the highlights of the

welfare policy of the ICICI group.

Trekking Club:

ICICI bank is encouraging the employees to go for new challenges. In the same cause it

arranges the trekking for the employees. ―Trekking means to find a new trek.‖ It develops

the decision making and ability to handle a new situation. This provides opportunity to

employees to be physically and mentally fit and strong. It also connects employees to the

NATURE.

ICICI Bank organizes an annual trek to Uttarkashi. This makes employees satisfied as

they get chance to visit a place and joy of trekking.

Photography Club:

ICICI has a photography club in which all the interested employees get the opportunity to

learn from experts all about photography techniques, camera handling, film developing

and camera care. The club organizes contests with exciting prizes to win! This

encourages hobby development and sense of being counted as a family member to the

employees.


- 104 -

Saturday Kids Club:

For the children of our employees, a place to learn, unwind and have lots of fun. This

allows development of the children.

Health Services:

The company provides a comprehensive medical plan with an on-site doctor and

dietician.

Discount offers / schemes:

Corporate discounts on stuff ranging from washing machines, PCs, and CDs round the

year.

Holiday Homes:

We have holiday homes in the better-known vacation spots all over the country.

Scholarship Schemes:

For the children of our employees, so that they may grow to reach new heights.

Organizational Excellence

The Organizational excellence group, headed by a senior General Manager who reports

to Managing Director & CEO , is engaged in institutionalizing quality across the Bank by

building skills and capabilities in various quality frameworks. The group has evolved a


- 105 -

holistic workplace transformation model by integration various quality methodologies

such as Five S and Six Sigma. The group has been instrumental in facilitating enterprise-

wide deployment of Five S and is currently catalyzing the development of quality

processes across the Bank. The group works with business units to leverage quality for

business improvements. The group also supports other ICICI group companies in their

quality initiatives.

Community Development:

ICICI‘s social initiatives are designed to improve the capabilities of the poorest of the

poor to participate in the larger economy. They believe that optimizing child health in the

early years, providing universal elementary education and maximizing access to micro

financial services are critical for facilitating effective participation.

ICICI Bank's social sector initiatives aim to resolve some of the most fundamental

developmental problems facing India today. Our involvement is primarily in terms of

non-commercial support to fill knowledge and practice gaps in specific thematic areas—

Early Child Health, Elementary Education and Micro Financial Services.

www.ICICIsocialinitiatives.org is an interactive platform that seeks to:

Bring together participants in the development process to widen and deepen the

discourse informing development practice. Interactive features include discussion

boards and facilities to post papers, articles or other resources.

Publish research related to innovations and significant problems within the

identified thematic areas.

Enable online application for funding


- 106 -

Early Child Health:

In fiscal 2005, ICICI collaborated with DHAN Foundation, an NGO in Tamil Nadu, with

federated self-help groups (SHGs) and a robust micro finance programme to examine

whether

(a) SHGs provide an effective mechanism for improving health outcomes through

community-based and participatory ‗behavioral change communication‘.

(b) SHGs can mobilize communities and interface with local institutions to activate the

public health system.

(c) Innovative integration of microfinance and health care interventions can reduce health

care expenditure.

Additionally, ICICI participated in planning for and developing a community based

health worker programme for the state of Jharkhand based on the learning derived from

an operations research project funded by them in two blocks of Ranchi district. ICICI

also consolidated their efforts to improve health of newborn infants in the city of Mumbai

through health system reform and community action.

Elementary Education:

ICICI believe that education is a basic capacity required by every individual to critically

participate in social, political and economic processes and avails of opportunities to

acquire additional advanced skills throughout life.

The aim of their work in elementary education is to maximize the number of 14 years

olds who have a basic level of education. During fiscal 2005, ICICI explored issues

influencing the quality of education received by poor children in urban areas, undertook

initiatives to collect data on student learning and supported resource organizations

working in the area of early childhood education. Further in continuation of their strategy


- 107 -

to strengthen of Delhi, Madhya Pradesh and Rajasthan. In addition, they consolidated

their initiative with State Council of Educational Research and Training, Chhattisgarh for

development and testing of curricula and textbooks and other capacity building measures.

Micro Financial Services

ICICI‘s initiative in the area of micro financial services seek to ensure that all

individuals, especially the poorest, have access to financial services. Their work in this

area is to ensure universal access to financial services and develop a comprehensive suite

to financial services. in particular , they are investing in training facilities for the creation

and strengthening of micro finance institutions( MFIs) as also working towards

addressing constraints such as lack of capital and non-availability of suitable IT solutions.

During Fiscal 2005, ICICI made rapid strides in developing several products, including

savings, investments, pensions, remittances and insurance (life and non-life, including

weather, cattle and health insurance). These products are in varying stage of

development. A comprehensive health insurance has already been introduced through

ICICI Lombard General Insurance Company for the poor in Anekal Taluka in Karnataka.

The product insures 60,000 lives as provides cashless treatment for 1,600 surgeries, in-

patient and outpatient care at a premium of Rs. 120-180 per person per annum. The

product is being replicated in Manipal. Similarly, the weather insurance product has also

been successfully adopted by various states in India. ICICI is now in the process of

designing a weather insurance product for the landless poor to cover loss of work due to

adverse weather conditions.

ICICI Bank is divided into

(1) Wholesale banking

(2) Retail banking

(3) International banking


- 108 -

As a rapidly growing organization ICICI look to induct post-graduate management talent

from various business schools across the country. Enthusiastic and talented youth form

the backbone of their banking operations and will become future leaders of ICICI.

ICICI offers the grooming needed to be the best. ICICI offers a wide range of careers

in all functions including - Finance, Marketing, Operations, Information Technology and

Human Resources.

ICICI having ability to nurture individuals and provide them the space and empowerment

they need to hone their talents. Size gives ICICI the unique ability to provide fast growth

and high responsibility early in one‘s career as well as multiple avenues to reach the top.

The Work Culture at ICICI Bank is a tech-savvy, non-hierarchical, work environment

where early responsibility and independent decision-making enable each employee to

reach his/her potential. Coupled with this is a strong performance management system

that has built a meritocracy where high performing-high potential individuals are duly

rewarded.


- 109 -

FINANCIAL

MANAGEMENT


- 110 -

INDEX

OF

FINANCE DEPARTMENT

Sr. No. Particulars Page No.

1 Introduction 113

2 Capitalization & Capital Structure 119

3 Management of Fixed Assets 121

4 Capital Budgeting 123

5 Working Capital Management 124

6 Ratio Analysis 126

7 Balance sheet of Demat Account 135

8 ICICI Bank Financeals 139

a) Balance Sheet 140

b) Profit & Loss Account 141

c) Cash- Flow Statement 142

9 Consolidated Financial Accounts 143

a) Consolidated Balance Sheet 144

b) Consolidated Statement of Operation 145

c) Consolidated Cash- Flow Statement 146

10 Distribution of Shareholding 147

11 Shareholding Pattern 148


- 111 -

1. INTRODUCTION

Finance is one of the most crucial aspects for any company or business. The finance is

needed at all ventures. ICICI being bank finance is inevitable aspect for the bank. Before

1980 A.D. the function of financial manager was to just manage the inflow of cash when

ever needed by the company. But now the scenario has changed.

Finance is like lifeblood in any organization. It is very difficult to run business without

enough procurement of finance in current scenario.

According to Phillipatus ―Financial Management is concerned with the managerial

decisions that result in the acquisition and financing of long-term and short-term credits

for the firm.‖

The Financial Management is mainly concerned with the proper management of funds.

The finance manager must see that the funds are procured in a manner that risk, cost and

control considerations are properly balanced in a given situation and there is optimum

utilization of funds.

The financial manager is having mainly three aspects to manage.

1. Finance function.

2. Investment function.

3. Dividend function.


- 112 -

1. Finance function.

In finance function the manager has to estimate the financial need of the company and

then try to satisfy it in most efficient and effective way. i.e. To get the money as and

when needed.

2. Investment function.

In investment decision manager is performing the task of evaluating the project and

selecting the most profitable project for the company. Here the selection is done on the

bases of the company‘s priority.

3. Dividend decision.

The company is managed by professionals now a day. The real owners of the company

are the shareholders. Profit of the company is given to shareholders in form of dividend.

Management takes the decision how much profit to pay as dividend and how much to

retain.

According to modern management approach, ―Finance function is procurement of

funds, and then effective utilization in the business‖.

FINANCIAL SECTOR OVERVIEW

The financial sector witnessed significant developments during fiscal 2005. Credit

growth strengthened with an increase in industrial activity. Non-food credit increased by

29.1% in fiscal 2005 compared to 18.5% in fiscal 2004. Based on the data published by

RBI, the industrial sector is estimated to have accounted for 27.0% of credit growth in

fiscal 2005 as compared to 16% in fiscal 2004. The contribution of retail credit growth to


- 113 -

overall credit growth was the largest at 42 % of total non-food credit. The credit-Deposit

ratio increased from about 56% in April 2004 and stood at about 60% from November

2004 onwards. The incremental credit deposit ratio, excluding the impact of conversion

of IDBI into a bank, was about 100% in March 2005 compared to about 60% at the

beginning of the year.

Deposit grew by Rs.2, 285.26 billion, or 14.5%, in fiscal 2005 compared to 16.2% in

fiscal 2004. The average yield on 10-year government securities increased from 5.5% in

fiscal 2004 to 6.2% in fiscal 2005. In response to the hike in CRR and the reverse repo

rate in the RBI‘s mid-year review, in November 2004, banks increased their benchmark

prime lending and deposit rates.

Growth in both the life and non-life insurance markets was significant. First year

premium underwritten in the life insurance sector recorded a growth of 35.7% to reach

Rs. 253.43 billion in fiscal 2005 with the private sector‘s market share increasing from

13.0% in fiscal 2004 to 21.9% in fiscal 2005.

Gross premium in the non-life insurance sector grew by 12.8% to Rs. 180.95 billion in

fiscal 2005 with the private sector‘s market share increasing from 14.1% in fiscal 2004 to

19.6% in fiscal 2005.

Total asset under management of mutual funds grew by 7.2% from Rs. 1,396.16 billion at

March 31, 2004 to Rs. 1496.00 billion at March 31, 2005.


- 114 -

The banking sector witnessed several important regulatory developments. In June 2004,

guidelines on capital for market risk were issued. Under this, banks would be required to

maintain a capital charge for market risk in respect of their trading and available for sale

investment portfolios.

RBI has issued draft guidelines for the implementation of the revised capital adequacy

framework of the Basel Committee. These are to be effective from fiscal 2007 and

prescribe a 75.0% weight for retail credit exposure, rating based differential risk weights

for other credit exposure and a capital charge for operational risk.

A roadmap for presence of foreign banks in India has also been outlined. Initially, foreign

banks are allowed entry only in private sector banks identified by RBI for restructuring in

which acquisition is allowed in a phased manner. On February 28, 2005, RBI released

guidelines on ownership and governance in private sector banks.

The Indian financial sector is rapidly moving towards international benchmarks. Progress

in direction of increasing efficiency, transparency and dynamism in the system has been

rapid. Given the rapid growth prospects in India, the financial sector has a crucial role to

play in the development of the economy. Board based reforms have made the banking

sector competitive and have positioned it well to support sustainable growth in a fast

growing economy.

The strength of the bank has been its diversification into various businesses. It covers

almost all the financial arrears. Recently, it entered into the commodity market in a big

way. It has also tasted success with its branchless banking model.


- 115 -

PAST PERFORMANCE OF BANK

Financials

Period

Ending

June-

2001

June-

2002

June-

2003

June

-2004

Total

Income

1462.47

2816.92

13169.47

11965.84

Net

Sales

1242.13

2151.93

9368.05

8894.04

PBDIT

1064.19

1939.05

9366.98

8924.04

Int.

Exp

837.67

1558.92

7944.00

7015.25

PBT

226.52

380.13

1422.98

1090.09


- 116 -

Net

Profit

161.10 258.30 1206.18 1637.10


- 117 -

2. CAPITALISATION AND CAPITAL

STRUCTURE

Capitalization means total capital of a company. Capital structure means how a company

gathers its total capital. ICICI Web Trade is part of ICICI Bank. It doesn‘t have its own

capital structure and capitalization. Capitalization and capital structure of ICICI Bank as

a whole is as given below.

Capitalization means total amount of a Company‘s capital or total value of capital. It is

the sum of owners‘ capital + loan + retained earnings of business.

Gerston Bery defines capitalization as ―the total accounting value of all the capital

regularly employed in the business‖.

Capital Structure:

The capital structure of business should be such that, which helps to achieve the

objectives of finance department. The capital structure should be examined from the

view point of the impact of the value of the firm. It can be legitimately expected that if

the capital structure decision affects the total value of the firm, a firm should select such

Capital structure, which will maximize share holders wealth. Such type of capital

structure is called as OPTIMUM CAPITAL STRUCTURE (OCS). O.C.S. may be

defined as the capital structure, which is in the combination of debts and equity that leads

to the maximum value of the firm.


- 118 -

According to Gerstenberg, Capital structure refers to ‗the makeup of firm‘s

capitalization‖. Means it represents the mix of different sources of long-term funds such

as equity shares, preference shares, long-term loans, retained earnings etc.

In our organization the capital structure can be shown like below.

Subscribed and fully paid up share capital.

Reserves and surplus

Loans (Debt).


- 119 -

3. Management of Fixed Assets

The fixed assets are distinguished from the current assets on the basis of length of their

physical and economic life, their convertibility into cash, the place they occupy in the

business cycle. Thus, fixed assets are permanent in nature and not easily converted into

cash. Huge firms are required to invest in fixed assets, for long period and if any mistake

made in evaluating investment proposals, must be shown by he finance manager in

evaluation investment proposal. These fixed assets have fixed cost burden, therefore

operating and financial efficiency of the firm have direct bearing upon it.

There are two types of fixed assets.

1. Tangible assets

2. Intangible assets

Tangible assets include land, building, machinery, plants, etc. Intangible assets

includes goodwill, patent, trademark, etc., there are various aspects the manager should

keep in mind while preparing plan for fixed assets. These are as under:-

Time of acquisition of fixed assets:

Evaluation of capital project

Physical and economical life of project

Method of purchasing of fixed assets


- 120 -

Unit of investment in fixed assets

Regular records of each assets

Rate of depreciation on fixed assets

Plant maintenance

Replacement policy:

Efficiency of each fixed assets


- 121 -

4.CAPITAL BUDGETING

Capital Budgeting is the process of planning expenditure for assets, the return on which

are expected to continue beyond one year.

The investment of funds requires a number of decisions to be taken in a situation in

which funds are invested and benefits are expected over a long period. The finance

manager of concern has to decide about the asset composition of the firm. The assets of

the firm are broadly classified into categories viz. fixed and current. The aspect of taking

the financial decision with regard to fixed assets is known as capital budgeting. The term

capital budgeting means planning for capital assets. The capital budgeting decision means

a decision as to whether or not money should be invested in long term projects.

There are so many methods available for taking decisions of capital budgeting some of

are as given below.

1). Pay back period method.

2). The net present value method.

3). Profitability index.

4). Average rate of return method.

5). Internal rate of return method.


- 122 -

5.WORKING CAPITAL MANAGEMENT

One of the most important areas in the day to day management of the organization is the

management of working capital. Working capital management is the functional area of

finance that covers the entire current accounts. Working capital refers to the funds

invested in current assets, i.e. investment in inventories, sundry debtors, cash and bank

balances etc. Current assets are essential to use fixed assets profitably.

Working capital requirement is one of the important criteria in every organization proper

concentration would always beneficial for organization.

The following are the main factors which should be taken into consideration while

determining the requirement of working capital.

1). Production policies.

2). Nature of Business.

3). Credit policy.

4). Inventory policy.

5). Market Conditions.

6). Conditions of supply.

7). Growth and expansion.

8). Level of Taxes.

9). Dividend Policy.

10).Price Level Changes.


- 123 -

Concept of working capital:

There are 2 types of working capital management, namely (1) Gross and (2) Net.

1. Gross Working Capital

The firm‘s gross working capital refers to total current assets of the firm. Current assets

are that which can be converted into cash within accounting year or a short period. These

assets should be more than current liabilities.

2. Net Working Capital

The term Net Working Capital refers to difference between current assets and current

liabilities. It guides the financial manager about the liquidity position of the firm. The

goal of Working capital management is to manage current assets and current liabilities in

such a way, that an acceptable level of Net working capital is maintained.


- 124 -

6. RATIO ANALYSIS

Ratio analysis is one of the techniques of financial analysis where rations are used as a

yardstick for evaluating the financial condition and performance of the firm. Analysis and

interpretation of various accounting rations gives skilled and experiences analyst a better

understanding of the financial condition and performance of the company than what he

could have obtained only through a perusal of financial statements.

Ratios are relationships expressed in mathematical terms between figures which are

connected with each other in come manner. Obviously, no purpose will be served by

comparing two sets of figures which are not at all connected with each other. Moreover

absolute figures are also unfit for comparison.

The following calculations are some of the ratios which are calculated by me with regards

to the Balance Sheet and the Profit & Loss Account of ICICI Bank for the year ended on

31st March 2005.

NOTE: Rupees in 000’s

1) Interest Income Ratio:

Interest Income Ratio = Interest *100

Total Income


- 125 -

Particulars As on 31.3.2005 As on 31.3.2004

Interest Earned 9,40,94,944 9,00,23,946

Total Income 12,82,60,383 12,06,73,174

Year 2005

Interest Income Ratio = 94094944/128260383*100

= 73.36%

Year 2004

Interest Income Ratio = 90023946/120673174*100

= 74.60%

Comments:

This ratio gives the information about the interest income earned against the total income

earned. In the year 2005 the ratio decreases from 74.60% to 73.36%. It shows that the

bank has poor investments which give the less returns to the bank and is harmful for the

bank to have less income.

2) Other Interest Income Ratio:

Other Interest Income Ratio = Other Income * 10

Total Income


- 126 -


Other Income 3,41,61,439 3,06,49,288

Total Income 12,82,60,383 12,06,73,174

Year 2005

Other Interest Income Ratio = 3,41,61,439/12,82,60,383*100

= 26.63%

Year 2004

Other Interest Income Ratio = 3,06,49,288/12,06,73,174*100

= 25.40%

Comments:

This ratio gives the idea about the other than interest incomes earned by the bank to the

total incomes. It shows that this income is more in this year. It was about 25.40%

comparing that with the current year which is26.63%. This shows that the bank has done

more efforts to earn this income which has increased the overall profitability of the bank.

3) Interest expense Ratio:

Interest expense Ratio = Interest Expense *100

Total Expense


- 127 -


Interest Expense 6,57,08,876 7,01,52,492

Total Expense 10,82,08,367 10,43,02,111

Year 2005

Interest Expense Ratio = 65708876/108208367*100

= 60.72%

Year 2004

Interest Expense Ratio = 70152492/104302111*100

= 67.26%

Comments:

This ratio states the amount interest paid by the bank as an expense to the total expenses.

This amount is reducing i.e. it is 6.54% less than the last years. This a good sign for the

bank as it has reduced the amount of expenses and reduced it liabilities over the assets.

4) Operating Expense Ratio:

Operating Expense Ratio = Operating Expenses * 100

Total Expenses


- 128 -


Operating Expense 3,29,91,475 2,57,12,325

Total Expense 10,82,08,367 10,43,02,111

Year 2005

Operating Expense Ratio = 3291475/108208367*100

= 30.49%

Year 2004

Operating Expense Ratio = 2,57,12,325/10,43,02,111*100

= 24.65%

Comments:

This ratio gives the amount of operating expenses against the total expenses. On the

whole we can say that it is not a good sign for the bank.

5) Own Funds to Asset Ratio:

Own Funds to Asset Ratio = Own Funds *100

Total Assets


- 129 -


Capital (A) 1,08,67,758 96,64,012

Reserve (B) 11,81,31,954 7,39,41,561

Own Funds (A+B) 12,89,99,712 8,36,05,573

Total Assets 1,67,65,94,053 1,25,22,88,741

Year 2005

Own Funds to Asset Ratio = 12,89,99,712/1,67,65,94,053*100

= 7.69%

Year 2004

Own Funds to Asset Ratio = 8, 36, 05,573/1, 25, 22, 88,741*100

= 6.68%

Comments:

This ratio gives the idea about how much owned funds we have as compared to the

assets. The ratio is increased in the current year which shows that shareholders are ready

to have more owners with the bank & bank wants to decrease outside dependence & also

wants to decrease the interest burden.

6) Crerearedit Deposit Ratio:

Crerearedit Deposit Ratio = Advances *100

Deposits


- 130 -


Advances 91,40,51,517 62,64,76,288

Deposits 99,81,87,775 68,10,85,841

Year 2005

Credit Deposit Ratio = 914051517/998187775*100

= 91.57%

Year 2004

Credit Deposit Ratio = 626476288/681085841*100

= 91.98%

Comments:

This ratio gives the idea about the advances given by the bank to the number of deposits

received by it. The figures show that the amount of advances has increased than the last

year and the deposits have also increased. It is a good indicator of the moving growth of

the bank. But as compared to the deposits the amount of advances are less so the bank

here tries to minimize the risk factor.

7) Payments to employees to Operating Expenses Ratio:

Pay. To employees to Operating Exps. = Payment to Employees *100

Operating Expenses


- 131 -


Payment to employees 1,12,92,000 99,76,000

Operating expenses 3,29,91,475 2,57,12,325

Year 2005

Pay. To employees to Operating Exps = 1,12,92,000/3,29,91,475*100

= 34.23%

Year 2004

Pay. To employees to Operating Exps = 99,76,000/2,57,12,325*100

= 38.80%

Comments:

This ratio shows the amount of payments made to the employees in accordance with the

total operating expenses. The percentage of the payments has been reduced than the

previous year which gives us an idea that the bank has maintained its employees by

maintaining their pay scales and then also retaining them.

8) Investment to Deposit Ratio:

Investment to deposit Ratio = Investments * 100

Total Deposits


- 132 -


Investments 50,48,73,525 43,43,55,214

Deposits 99,81,87,775 68,10,85,841

Year 2005

Investment to Deposit ratio = 50,48,73,525/99,81,87,775*100

= 50.58%

Year 2004

Investment to Deposit ratio = 43,43,55,214/68,10,85,841*100

= 63.77%

Comments:

This ratio briefs us about the amount to investments against the respective deposits. The

deposits have tremendously increased than the last year & the investment made from

them is decreased at a lower rate. The decrease in the investments is 13.19% than the

previous year.


- 133 -

7. BALANCESHEET OF DEMAT ACCOUNT

FINANCIAL HIGHLIGHTS OF ICICIDIRECT.COM

FISCAL 2004 FISCAL 2005

Gross income 375,990 468,620

Profit before tax 298,680 138,680

Provision for tax 107,900 53,190

Profit after tax 190,780 85,490

Dividend

To conserve resources for the business of the company, the directors do not recommend

payment of dividend for the current year.

OPERATIONAL REVIEW:

ICICI WEB TRADE also recorded all time high revenue of Rs. 468.62 million register in

a growth of 24.64% over the previous year.


- 134 -

The derivatives segment continues to do extremely well as company maintained

leadership position in the institutional market even tough competition increased during

the year. Total derivatives turnover for company increased 115%.

ICICI WEB TRADE was also associated with the largest and the most prestigious IPO of

the year, NTPC – the largest power utility in India.

FOREIGN EXCHANGE EARNING AND EXPENDITURE:

During 2004-2005, expenditure in foreign currencies amounted to Rs. 28.55 million

(previous year Rs. 21.83 million) there were no earning in foreign currencies during the

year.

STATUS OF ICICIdirect.com:

The security market in India has taken further move in last 5 to 7 years. The basic reason

for the development is due to the increasing awareness among the people; developing

communicational media and most importantly change in the way of transaction i.e. on-

line trading of securities. BSE Online Share Trading (B.O.L.T) has brought revaluation in

the security market.

Introduction of private banks in security market dealing and real estate business have

brought the efficiency and competition in the market. Mutual funds are also one of the

major elements, which have influenced the growth of security market. Foreign

Investment Institution (F.I.I) and Foreign Direct Investment [F.D.I] has also contributed

in the growth of the security market in India.


- 135 -

Currently in the security market the investor, institutional buyers and foreign investors

are trading in following securities.

The current change in the today‘s market is the Dematerialized form of almost all

securities. Previously the securities were available in materialized form i.e. in papers (in

form of certificate) but now it is available in Dematerialized form.

It means securities are not given in paper format but in ELECTRONIC format it is been

directly credited in purchaser‘s Demat account.

Equity Shares Mutual Funds

Preference Shares Government Bonds

Derivatives Commercial papers

The main benefits of Dematerialized form are as follow.

Chances of fraud are minimized

Physical delivery of security is terminated.

No chance of theft of security.

Quick hand over and less transaction time


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BALANCESHEET OF ICICI DIRECT.COM


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RECOMMENDATIONS AND

SUGGESSIONS

Brokerage can be reduced to the possible extent, so that new customers can be

attracted.

Some customers are not trading online even after open an account because they

are not having enough knowledge about site. This can be solved with proper

demonstration of site to customer who had opened an account.

After opening of account, customer should provide a guidebook, so that they can

easily learn and transact with ICICI Direct.Com.

Stalls can be installed at public places and browsers can be distributed among

public.

Some discount/offer can be given to those who are opening accounts in groups.

Offer can be give to the existing demat account holder.


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CONCLUSION

From the training, I came to know how to deal with the clients, especially from

the marketing viewpoint.

From this one & half month of training I have learnt that practical knowledge is

very necessary in any field.

My through study of all the organizational departments has also made me aware

about how all the departments try to coordinate each other & led the bank towards

the peak of profits.

My training at ICICI Bank, Junagadh, main branch, has lead me to learn that how

the banks work efficiently although in this competitive era.

The training lead me to understand how all the departments of the bank namely

operations, marketing, finance and human resource departments work in a

coordinated way and how the branch manager tries to join all the different hands

with each other.

It also taught me how the private sector banks works in this competitive and fast

moving environment.

The bankers are trying to provide a wide range of products and services and very

efficient services to its customers.

The tough and competitive works done by its employees has made me aware

about the needs to change with the changing environment to survive in the

competitive market.

It also gave me an elaborated study of the organizational study of the Bank.

My training gave me a good learning and gave me an idea about the practicality

of the theories which I have learned as a part of my study syllabus in my M.B.A

programme.


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It also gave me idea how the banks works and are managed by its executives the

whole day.

The regular and routine decisions taken by the managers of different department

so as to let the working go on smoothly without any hindrances.

It has also made me aware of regular maintenance of the branch and its

employees.

The professionalism is the most important thing which I noticed at the IndusInd

Bank and would also like to say that all the employees working maintain it.

The updated knowledge of not everything but the basic is necessary in this world.

It has also gave me an idea how the managers at top level talk and behave very

nicely and cordially with the staff right from the watch man, his subordinates to

their senior officers along with its customers.

They also try to maintain the good organizational culture and discipline in the

organization which is suitable and healthy for all who are working over there and

who are directly or indirectly attached to the bank including its customers.

The bank has provided me the learning of how the customers blindly believe on

the banks and how the bankers try to retain it patiently.

My learning says that it is not an easy task to remain stand through in this

competitive era.

My one and half month experience says that its easy to learn theories but you

should know how to apply them practically than only you can put yourself in this

environment.


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BIBLIOGRAPHY

Marketing Management - Philip Kotler

Investment management - V.K.Bhalla

HRM - K.Aswathapa

List of the sites

www.icicibank.com

www.icicidirect.com

www.kotakstreet.com

www.nse.com

www.bse.com

www.hdfc.com

www.indiabulls.com

www.notension.biz

http://www.icicibank.com/

http://www.icicidirect.com/

http://www.kotakstreet.com/

http://www.nse.com/

http://www.bse.com/

http://www.hdfc.com/

http://www.indiabulls.com/

http://www.notension.biz/