ICICI BANK

ICICI BANK
Industrial Credit And Investment Corporation Of India

A Project submitted to
University Of Mumbai for partial completion of the degree of
B.Com. (Banking and Insurance)
Under the faculty of Commerce

By
SHIVANI SHIVANAND UPADHYAY
Roll no: 92

Under the guidance of

PROF. BHAVANA CHAUHAN

Vidyavardhini’s
Annasaheb Vartak College of Arts,
Kedarnath Malhotra College of Commerce,
E.S. Andrades College of Science,
Vasai (West), Dist. Palghar, Maharashtra – 401202
March-2021

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 ICICI BANK

ICICI BANK
Industrial Credit And Investment Corporation Of India

A Project submitted to
University Of Mumbai for partial completion of the degree of
B.Com. (Banking and Insurance)
Under the faculty of Commerce

By
SHIVANI SHIVANAND UPADHYAY
Roll no: 92

Under the guidance of

PROF. BHAVANA CHAUHAN

Vidyavardhini’s
Annasaheb Vartak College of Arts,
Kedarnath Malhotra College of Commerce,
E.S. Andrades College of Science,
Vasai (West), Dist. Palghar, Maharashtra – 401202
March-2021

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Vidyavardhini’s
Annasaheb Vartak College of Arts,
Kedarnath Malhotra College of Commerce,
E.S. Andrades College of Science,
Vasai (West), Dist. Palghar, Maharashtra – 401202

CERTIFICATE
This is to certify that Ms./Mr. Upadhyay Shivani Shivanand has worked
and duly completed her/his Project work for the degree of B.Com.
(Banking and Insurance) under the faculty of Commerce in the subject of
Project Work and her/his project is entitled, ‘Industrial Credit And
Investment Corporation Of India (ICICI BANK)’ under my
supervision.
I further certify that the entire work has been done by the learner under my
guidance and that no part of it has been submitted previously for any Degree
or Diploma of any University.
It is her/his own work and facts reported by her/his personal findings and
investigation.
PROF. BHAVANA CHAUHAN

Internal Examiner

Date of Submission: External Examiner

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DECLARATION

I, the undersigned Ms./Mr. UPADHYAY SHIVANI SHIVANAND here

by, declare that the work embodied in this project work titled,
‘DECLARATION

I, the undersigned Ms./Mr. UPADHYAY SHIVANI SHIVANAND here

by, declare that the work embodied in this project work titled, ‘Industrial
Credit And Investment Corporation Of India (ICICI BANK)
’ forms my own contribution to the research work carried out under the
guidance of Prof. BHAVANA CHAUHAN is a result of my own research
work and has not been previously submitted to any other University.
Whenever reference has been made to previous works of others, it has been
clearly indicated as such and included in bibliography.
I, here by further declare that all information of this document has been
obtained and presented in accordance with academic rules and ethical
conduct.

- SHIVANI SHIVANAND UPADHYAY

ROLL NO: 92

Certified by
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ACKNOWLEDGEMENT
To list who all have helped me is difficult because they are so numerous and
depth is enormous.
I would like to acknowledge the following as being idealistic channels and
fresh dimensions in the completion of this project.
I take this opportunity to thank the University Of Mumbai for giving me
chance to do this project.
I would like to thank my Principal, Dr. Santosh Shende for providing the
necessary facilities required for the completion of this project.
I take this opportunity to thank our Self- Finance In-charge Dr. Arvind
Ubale, and our Coordinator Prof. Bhavana Chauhan for their support and
guidance.
I would also like to express my sincere gratitude towards my project guide,
Prof. BHAVANA CHAUHAN whose guidance and care made the project
successful.
I would also like to thank my College Library, for having provided various
reference books and magazines related to my project.
Lastly, I would like to thank each and every person who directly or
indirectly helped me in the completion of the project especially my Parents
and Peers who supported me throughout my project. Page5

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 ICICI BANK

CHAPTER- 1

INTRODUCTION
ICICI Bank is a private sector bank engaged in retail banking, insurance etc. ICICI
Bank, Naya Palli Branch is a newly founded 1.1General

branch. Universal banking refers to the banking, which provides all the financial products
and services to its customers.

1.2An Overview of Banking Industry

The Indian Banking history can be broadly categorized into nationalized private banks
and specialized banking institutions. The Reserve Bank of India acts as a centralized
monitoring system. Since the nationalization of banks in 1969, the nationalized banks
have acquired a place of prominence and has since, then seen tremendous progress. The
need to become highly customer focused has forced the slow moving public sector banks
to adopt a fast track approach. The liberalized policy of Government of India permitted
entry to private sector banks in the banking industry. The major differentiating parameter
that distinguishes these banks is the level of service that is offered to the customer. The
popularity of these banks can be gauged by the fact that in a short span of time, these
banks have gained considerable customer confidence and consequently have shown
impressive growth rates. With efficiency being the major focus, these banks have
leveraged on their strength and competencies viz. management, operation efficiency and
flexibility, superior product positioning a higher employee productivity skill.

The private banks with their focused business and services portfolio have a reputation of
being niche player in the industry. A well chalked out integrated strategy has allowed
these banks to operate 70% of their business to urban areas, this statutory requirement has
translated into lower deposit mobilization costs and higher margins to public sector
banks. Banks are increasingly finding that most viable way of differentiating themselves
will be to successfully manage customer relationship and enhance the overall customer
experience. In future the market space will see banks and non-banks striving to seek
opportunities to profit, in the wake of product customization.

1.3Universal Banking

Ever since the financial sector reforms were introduced in early 90’s the banking sector
saw the emergence of new generation private sector banks. These banks gained at most
popularity as they have technology edge and better business models when compared to
public sector banks and the most important thing is they are able to attract more volumes
simply because they meet their customer’s requirements under one roof. If the newer
players can do that then why can’t the bigger players like the Financial Institutions (FIs)
try their hands on it? Here comes the concept of universal banking, its emergence, merits
and related issues. The present paper focuses on understanding the concept of universal

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banking in India and attempts to explain the regulatory role, regulatory requirements, key
duration and maturity distinction and lastly the optimal transition path.

Universal Banking, means the financial entities – the commercial banks, Financial
Institutions, NBFCs, - undertake multiple financial activities under one roof, thereby
creating a financial supermarket. The entities focus on leveraging their large branch
network and offer wide range of services under single brand name.

Universal Banking generally takes three forms:

• In-house Universal banking. E.g. Germany, Switzerland.

• Through separately capitalized subsidiaries. E.g. England, Japan. 

Operations carried through a holding company. E.g. USA, Japan.
In general, Universal Bank is a name given to banks engaged in diverse kind of banking
business which includes not only services related to savings and loans but also
investments, offering wide range of financial services, beyond commercial banking and
investment banking, insurance etc. If specialized banking is the one end universal
banking is the other. This is most common in European countries and this concept is
widely popular in countries like USA but is about to take-off officially in India, as the
definition of Universal Banking is yet to be established clearly and conclusively. A
narrow view of Universal banking could be activities pertaining to lending plus
investments in bonds and debentures. A broader view could include a basket of all the
financial activities including insurance.

The characteristics of Universal Banking heavily depend of two most important factors,
namely:

- The specific country’s diversification rules and regulations.

- The strengths of individual banks in enlarging the scope of the activities in the various
segments of financial services industry.

1.4 Retail Banking

Retail Banking Group has emerged as the fastest growing segment within ICICI Bank
Ltd. Within RBG, retail channel and liability group mobilize the much-needed resources
at highly competitive rates through deposits and bonds and retail assets and products
group deploys the available resources through various channels like Home Loans,
Personnel Loans, Consumer Durable Loans, Commercial Vehicles Loan etc. in the retail
assets. Across the world retail banking has been the high volume-low value business
proposition. Enormous amount of resources are required to acquire and service customer
in terms of infrastructure and operation. Given the current stage of evolution of the Indian

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market, we have adopted an organization model that continuous to focus on product and
on achieving attention and dedicated services, and at the same facilitate the widening and
deepening of customer relationships. Small enterprises and emerging corporate segment
has strong synergies with the retail business in terms of customer profile and servicing is
done through technology platform and retail branches.

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CHAPTER-2

TERMS RELATED TO BANKING

2.1 General

A depository is like a bank where securities are held in electronic form. In India, there are
two depositories- National Securities Depositories Limited (NSDL) and Central
Depository Services (CDSL).Under the depository Act, depositors can avail to the
services of the Depositories through Depository Participant (DP) such as ICICI Bank.
DP's are like bank branches wherein shares in physical form need to be deposited for
converting to electronic (Demat) form.

2.2 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 Demat account. Dematerialized securities do not have any
certificate numbers and are detail only in quantity i.e. the securities are fungible.
Dematerialization of one's holdings is not mandatory. One can hold ones securities either
in Demat form or in physical form. One can also keep part of one's holdings in Demat
form and part in physical form. However, a selected list of securities announced by SEBI
can be delivered only in Demat form in the stock exchanges connected to NSDL.

2.3 Sale/Delivery of Securities

Securities transaction can be settled in Demat form for the transactions done on stock
exchanges connected to NSDL at present NSE, BSE, CSE, DSE, LSE, BSE, OTCEI,
MCE,ISE & ASE are connected to NSDL. Trading in dematerialized securities is done
through broker just like trading in physical securities. Sell Dematerialized Securities, The
customer can sell their dematerialized securities in any of the stock exchange linked to
NSDL through a broker of their choice.

2.4 Purchase/Receipt of Securities

All purchases/receipt of securities in one's account is affected as per `Standing Instruction

for Credit given to ICICI Bank to receive credits automatically in the account. If the
customers have not given standing instruction for receiving credits, one is required to
give a specific receipt instruction for each credit in the prescribed form. The date of credit
depends on ones brokers' instruction and ICICI bank has no control on the same.

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2.5 Dematerialization

It 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.

2.6 Pledge

Securities held in Demat form can be pledged by the client to avail loan/credit facility.
Pledge of securities in NSDL requires that both the borrower and lender should have a
Demat account with any of the DP's with NSDL. The facility for Inter Depository pledge
is not available.

2.7 Freezing/Defreezing

The client has an option to freeze his accounts in case he does not intend to do any
transaction in the near future. This helps in curbing unauthorized use of Demat account
and prevention of frauds. Defreezing of the account is required to enable the account
again for transaction. The request for freezing and defreezing must be submitted in
personal prescribed form.

2.8 Corporate Benefit- Dividend, Bonus or Right Issue

In case the company in which a beneficial owner holds shares in Demat form announces
any corporate benefits like bonus, dividend etc. the beneficial owner will receive the
same directly in his Demat account or bank account depending on the nature of the
benefit. For payment of dividend etc. the company/registrar takes a list of beneficial
owners from NSDL as on the record date/book closure date. Based on this list, company
makes payment of dividend. If the company is making payment through ECS, the
company will directly credit the dividend to the bank account registered by the beneficial
owner. If the company is making payment through cheque/DD, the bank details will be
printed on dividend warrant. In case of a bonus declaration by the company, the bonus
securities on the eligible securities in the beneficial owner's Demat account by the
company/registrar under intimation to the beneficial owner. This will be reflected in the
transaction statement for the period. In case of rights issue, the beneficial owner will
receive an option to subscribe for the eligible number of securities from the company.
These may be in physical or electronic form in the customers Demat account. In case of a
merger or acquisition, securities in the beneficial owner's Demat account is automatically
credited and debited by the company as per pre-declared ratio under intimation to the
beneficial owner. This will be reflected in the transaction statement for the period.

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2.9 Public Issue

When subscribing for shares in a public issue, one can request for securities, if allotted to
be credited directly to ones Demat account and quote ones Demat account for the purpose
in the application form. After allotment, the securities will be credited directly to ones
Demat account under intimation to one from the company/registrar.

2.10 Nomination

The customer can make a nomination of his account in favor of any person by filing up
the nomination details in the account opening form. This is to enable the nominee to
receive the securities after the death of all the holder(s) of the Demat account.

2.11 Transmission

It refers to transfer of securities from an account to the other as a result of the death of the
sole/ any of the holders of the former account. Here the transfer may be done to:
Surviving Holders Nominee where nomination has been made Legal heir where
nomination has not been made Common Requirements and effect.

2.12 Demat Account Statement

If there is transaction in previous 30 days, the customer is sent transaction statement. If

there is no transaction in previous 30 days but more than 90 days have passed, a quarterly
statement is sent if there are some holdings in the customer's account. Customers who
have opted for statement thru email" will get a digital signature obtained from a
Certifying Authority under the Information Technology Act, 2000, which will
authenticate the email.

2.13 Registration for Internet/phone Access & e-instructions

To increase convenience to the customers while reducing work load at ones end in
handling queries, there is a facility for the customer to directly access his Demat Account
24 hours a day, 365 days a year through internet and phone. It is not mandatory to hold a
banking account to be able to register for such access.

2.14 Mobile Banking

With mobile banking one has an option to remain updated while one is on the move,
without even calling or logging on to internet.

2.15 Billing & Payments

The bills are generated in the beginning of each month for the previous month. The due
date is mentioned in the bill. However, it is not viable to send bills with amount less than

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a certain cut-off amount. I.e. Rs.50. Customers will receive bills in the next quarter or
whenever the bill amount exceeds the cut-off amount.

2.16 Change of Address & Bank Details

One can request for the following through a common form:-

Change of Address- The client should personally visit the branch. In case of a corporate,
at least one of the authorized signatories should sign the request in presence of the branch
officer.

Change of Bank Details for Receiving Dividend- The bank account details attached with
each Demat account are used to make dividend/interest payments. As per a recent SEBI
circular, it is mandatory for registrar companies to make dividend/interest payments by
ECS wherever bank details for the investors are available.

2.17 Change of Rate Card

One can shift from the standard scheme to the frequent traders scheme or vice-versa. The
application should be made in a prescribed form at ICICI bank. In case of shift from
standard scheme to frequent trader scheme, the customer can specify the date from which
the shift should take place and the application should contain a mandate for recover of
Rs. 900. In case of shift from frequent trader scheme to standard scheme, the scheme is
always effective from the date when the change in the billing scheme is been done.

2.18 Account Security

Emphasis needs to be given on the fact that the securities that one have in ones Demat
account are similar to the money that one holds in bank account. One needs to take all
precautions for ones Demat transaction as one exercise for bank account. The TFD
booklet should be kept safely just like a cheque book. The details should not be shared of
one's Demat account number and signature with anyone. It should be accepted only if it
has pre-printed serial number as well as one's Demat account number pre-stamped on
each slip. It should not be signed unless completely filled. If possible one should make
use of web facility to check ones Transactions as frequently as possible. "Account freeze"
instruction should be given to ICICI bank if one does not intend to operate ones account
for a long time.

CHAPTER-3

INTRODUCTION TO THE STUDY

3.1 Theoretical Background of the Study

The banking industry in India has undergone a sea of change ever since the economic
form process was initiated. There is no doubt that the banking industry continues to play

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a cardinal role in spread heading the economic activity of the country. From an industry
almost monopolized by the nationalized bank till the 90's it has now emerged as a
conglomerate of nationalized, private and foreign banks setting new trends in the way
banking is carried out. The deregulation in the interest rates, grant of functional autonomy
to the banks in the area of credit, entry of foreign banks and emergence of new private
banks has made the banking environment. The whole Indian banking industry scenario is
changing while the chunk of other total share in bank credit continues to be dominated by
public sector banks, the increase boost given to foreign and private participation is
expected to make banking more challenging. Lately, Indian banks are diverting from their
bread and butter business of lending and accepting deposits, and are resorting to other
related activities. Any private or foreign banks is found to have spread its wings across a
variety of business starting from housing finance, credit finance, credit cards, investment
banking, internet banking etc. with a lot of thrust on retail and consumer loans to lending
to small and medium enterprises an agriculture. To sustain the market share and maintain
the profitability, banks including the nationalized ones are trying to incorporate product
diversity and with more focus on customer needs. Most of the private banks are moving
towards the `Universal Banking'. Universal Banking means the banking in which the
banks have all the financial products and services for its customers. Now there is a need
to observe how these private banks are going to apply the concept for customer
satisfaction and for the growth of business in emerging area of finance. The information
collected was compared with ideal one to find out major drawbacks and best practices
too.

3.2 Objectives

• Analytical observation of products related to day-to-day operation of ICICI Bank

Limited.
• Comparing and evaluating the real operation with the ideal one.
• To analyze the profitability of different products and services offered by ICICI.
• To come out with valuable suggestions for improvement.

3.3 Research Methodology

The whole research was mainly based on qualitative research. Grey areas were fished out
through pilot survey. The research was based on an unstructured and undisguised
observation.

3.4 Targeted People

The target group includes the bank officials including Branch Manager, Branch
Operations manager, Assistant Manager and Senior Officers.

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CHAPTER-4

COMPANY PROFILE

4.1 A Brief Introduction of ICICI Bank Limited

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

ICICI was formed in 1955 at the initiative of the World Bank, the Government of India
and representatives of Indian industry. The objective was to create a development
financial institution for providing medium-term and long-term 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. In 2001,
ICICI bank acquired Bank of Madura1 Limited. 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. In 2003, the first Integrated Currency Management Centre
launched in Pune. ICICI Bank announced the setting up of its first ever offshore branch in
Singapore. The first offshore banking unit (OBU) at Seepz Special Economic Zone,
Mumbai, launched. ICICI Bank's UK subsidiary launched. India's first ever "Visa Mini
Credit Card", a 43% smaller credit card in dimensions launched. ICICI Bank subsidiary
set up in Canada. Temasek Holdings acquired 5.2% stake in ICICI Bank. ICICI Bank
became the market leader in retail credit in India. In 2004, Max Money, a home loan
product that offers the dual benefit of higher eligibility and affordability to a customer,
introduced. Mobile banking service in India launched in association with Reliance
Infocomm. India's first multi-branded credit card with HPCL and Airtel launched. Kisaan
Loan Card and innovative, low-cost ATMs in rural India launched. ICICI Bank and
CNBC TV 18 announced India's first ever awards recognizing the achievements of
SMEs, a pioneering initiative to encourage the contribution of Small and Medium
Enterprises to the growth of Indian economy. In 2005, ICICI Bank opened its 500th
branch in India. ICICI Bank introduced partnership model wherein ICICI Bank would
forge an alliance with existing micro finance institutions (MFIs). The MFI would
undertake the promotional role of identifying, training and promoting the micro-finance
clients and ICICI Bank would finance the clients directly on the recommendation of the
MFI. ICICI Bank introduced 8-8 banking wherein all the branches of the Bank would

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remain open from 8a.m. to 8 p.m. from Monday to Saturday. ICICI Bank introduced the
concept of floating rate for home loans in India. First rural branch and ATM launched in
Uttar Pradesh at Delpandarwa, Hardoi. "Free for Life" credit cards launched wherein
annual fees of all ICICI Bank Credit Cards were waived off. ICICI Bank and Visa jointly
launched mChq - a revolutionary credit card on the mobile phone. Private Banking
Masters 2005, a nationwide Golf tournament for high net worth clients of the private
banking division launched. This event is the largest domestic invitation amateur golf
event conducted in India. ICICI is the first Indian company to make a simultaneous
equity offering of $1.8 billion in India, the United States and Japan. It acquired
IvestitsionnoKreditny Bank of Russia. ICICI Bank became the largest bank in India in
terms of its market capitalization. In 2006; ICICI Bank became the first private entity in
India to offer a discount to retail investors for its follow-up offer. ICICI Bank became the
first Indian bank to issue hybrid Tier-1 perpetual debt in the international markets. ICICI
Bank subsidiary set up in Russia. In 2007, it introduced a new product - 'NRI smart save
Deposits' - a unique fixed deposit scheme for non resident Indians. Representative offices
opened in Thailand, Indonesia and Malaysia. ICICI Bank became the largest retail player
in the market to introduce a biometric enabled smart card that allows banking transactions
to be conducted on the field. A low-cost solution, this became an effective delivery
option for ICICI Bank's micro finance institution partners. Financial counseling centre
Disha launched. Disha provides free credit counseling, financial planning and debt
management services. Bhoomi puja conducted for a regional hub in Hyderabad, Andhra
Pradesh. ICICI Bank's USD 2 billion 3-tranche international bond offering was the largest
bond offering by an Indian bank. Sangli Bank amalgamated with ICICI Bank. ICICI
Bank raised Rs 20,000 crore (approx $5 billion) from both domestic and international
markets through a follow-on public offer. ICICI Bank's GBP 350 million international
bond offering marked the inaugural deal in the sterling market from an Indian issuer and
also the largest deal in the sterling market from Asia. Launched India's first ever
jewellery card in association with jewelry major Gitanjali Group. It became the first bank
in India to launch a premium credit card -- The Visa Signature Credit Card. Foundation
stone laid for a regional hub in Gandhinagar, Gujarat. Introduced SME Toolkit, an online
resource centre, to help small and medium enterprises start, finance and grow their
business. ICICI Bank signed a multi-tranche dual currency US$ 1.5 billion syndication
loan agreement in Singapore. ICICI Bank became the first private bank in India to offer
both floating and fixed rate on car loans, commercial vehicles loans, construction
equipment loans and professional equipment loans. ICICI Bank enters Germany, opens
its first branch in Frankfurt. ICICI Bank launched iMobile, a breakthrough innovation in
banking where practically all internet banking transactions can now be simply done on
mobile phones.

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CHAPTER-5

BANK DEPOSITS

5.1 Preamble

One of the important functions of the bank is to accept deposits from the public for the
purpose of lending. In fact, depositors are the major stakeholders of the banking system.
The depositors and their interests from the key area of the regulatory framework for
banking in India and this have been enshrined in the Banking Regulation Act, 1949. The
Reserve Bank of India is empowered to issue directives/advices on interest rates on
deposits and other aspects regarding conduct of deposit accounts from time to time. With
liberalization in the financial system and deregulation interest rates, banks are now free to
formulate deposit products within the broad guidelines issued by RBI. This policy
document on deposits outlines the guiding principles in respect of formulation of various
deposit products offered by the bank and terms and conditions of governing the conduct
of the account. The document recognizes the right of depositors and aims at
dissemination of information with regard to various aspects of acceptance of deposits
from the members of the public, conduct and operations of various deposits accounts,
method of disposal of individual customers and creates awareness among customer of
their right. While adopting this policy, the bank reiterates its commitments to individual
customers outlined in Bankers' Fair Practice Code of Indian Banks' Association. This
document is a board framework under which the rights of common depositors are
recognized. Detailed operational instructions on various depositors are recognized.
Detailed operational instructions on various deposits schemes and related services will be
issued from time to time.

5.2 Types of Deposit Accounts

The deposit products can be broadly categorized in the following types:-

• "Saving Deposits" means a form of deposit which is subject to restriction as to the

number of withdrawals permitted by the bank during a specified period.

• "Term Deposits" means a form of deposit received by the bank for a fixed period
withdrawal only after the expiry of the fixed period and includes deposits such as
Recurring/Fixed deposits etc.

• "Current Account" means a form of demand deposit where withdrawals are

allowed any number of times depending upon the balance in the account or up to
a particular agreed amount and will also include other deposit accounts which are
neither Saving nor Term deposit.

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5.3 Key Features on Operation of Different Types of Accounts

The bank before opening any deposit account will carry out due intelligence as required
under "know your customer" guidelines given by RBI and or such other norms or
procedures adopted by the bank. The account opening forms and other materials would
be provided to the prospective depositor by the bank. The same will contain details of
information to be furnished and documents to be produced for verification and records.
For deposit products like saving account and current account, the bank will stipulate
certain minimum balances to be maintained as part of terms and conditions of such
accounts. Saving bank account can be opened for eligible person, persons, organizations,
agencies.

Current account can be opened by individual, partnership firm, private and public limited
companies etc. Term deposit account can be opened by individuals, partnership firms,
trusts, HUF's etc. The due diligence process, while opening a deposit account will involve
satisfying about the identity of the person, verification of address, satisfying about his
occupation and source of income. Obtaining introduction of the prospective depositor
from a person acceptable to the bank and obtaining recent photographs of the account
opener. Under KYC norms the bank is required by the law to obtain PAN or GIR
number. Deposits account can be opened by an individual in his own name or by more
than one individual in their own names. Minors can also open account jointly with natural
guardian.

Operation of Joint Account: The joint account opened by more than one person can be
operated by single individual or more than one individual jointly. The mandate can be
modified with the consent of all account holders.

The joint account holders can give any of the followings mandates for the disposal of
balance in the above account:-

a) Either or Survivors: If the account is held by two individual say A&B the final
balance along with the interest, if applicable, will be paid to survivor on the death of
anyone of the account holders.

b) Anyone or Survivors: If the account is held by more than two persons say A, B &
C, the final balance along with the interest, if applicable, will be paid to the survivor on
the death of any two account holders.

The above mandates will be applicable to or become operational during the tenure of the
term deposit on or after the date of maturity of term deposit. This mandate can be
modified by consent of all account holders. At the request of the depositor, the bank will
register mandate power of attorney given by the customer authorizing another person to
operate the account on his behalf. The term deposit account holders at the time of placing
their deposits can give instructions with regard to closure of deposit or renewal of deposit

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for further period on the date of maturity. Nomination facility is available on all accounts.
It can be made in favor of one individual only. It can be cancelled or changed by the
account holder any time. Bank recommends that all account holder avail to the
nomination facility. The nominee in the event of death of the depositor will receive the
outstanding balance in the account as a trustee of legal heirs. A statement of account will
be provided by the bank to savings bank as well as current account holders periodically as
per terms and conditions of opening an account. The deposit account may be transferred
to any other branch of the bank at the request of the depositor.

5.3.1 Minor's Account

a) The minor can open savings bank account and it can be operated by natural
guardian or by minor himself/ herself if they are above the age of 10. The account can
also be opened jointly.

b) On attaining majority, the erstwhile minor should confirm the balance in his/her
account and if the guardian operated the account, fresh specimen signature of the minor
would be obtained and kept on record for operational purposes.

5.3.2 Account of Illiterate/Blind Person

The bank may at its discretion open deposit accounts other than current accounts of
illiterate person. The account of such person may be opened provided the/she calls the
bank personally along with a witness who is known both to the depositor ad the bank. At
the time of withdrawal, deposit etc, the account holder should affix his/her thumb
impression or presence of the authorized officer who should identify of the person. The
bank will explain the need for proper care and safe keeping of the person given to the
account holder.

5.3.3 Addition or Deletion of the Name's of Joint Account Holders

Accounts, which are not operated for a considerable period of time, will be transferred to
a separate dormant inoperative account status in the interest of the depositor as well as the
bank. The depositor will be informed about the charges, if any. The depositor may
request to activate the account.

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5.4 Directives on Interest Payments & term Deposits

5.4.1 Interest Payments

Interest shall be paid on savings account at the rate specified by RBI. The bank decides
the interest rate within the general guidelines of RBI. The rate of interests will be
prominently displayed in the branch premises and on its website. The bank has statutory
obligation of deducting tax if the total amount payable exceeds the amount specified by
Income Tax Act. The bank will issue Tax Deduction Certificate (TDS).

5.4.2 Premature Withdrawal of Term Deposit

The bank on request from the depositor, at its discretion may allow withdrawal of term
deposit before completion of the period of deposit agreed upon at the time of placing the
deposit. The bank shall declare their penal interest rates policy for premature withdrawal.

5.4.3 Premature Renewal of Term Deposits

In case the depositor desires to renew the account, the bank will permit it at the applicable
date of the date of renewal, provided the deposit is renewed for a period longer than the
balance period of original deposit. The bank will be paid interest at the rate applicable to
the period for which it stayed with the bank and not the contracted rate.

5.4.4 Renewal of Overdue Term Deposits

When a term deposit is renewed on maturity, on renewed deposit interest rate for the period
specified by the depositor as applicable on the date of the maturity would be applied.

5.4.5 Advances against Deposits

The bank may consider loan overdraft facility against term deposits duly discharged by
the depositor on the execution of necessary security documents.

5.5 Deceased Account Handling

5.5.1 Settlement of Dues in Deceased Deposit Account

If the depositor has registered nomination with the bank, the balance outstanding will be
transferred to the nominees account after verification about the identity of the nominee.

The above procedure will be followed in even in joint account.

In a joint account, when one joint account holder dies, the payment is made to the legal
heirs of the deceased person and surviving depositor jointly.

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In absence of nomination and where there are no disputes, the bank will pay the amount
to the account of deceased person against joint application and indemnity by all heirs or
the person mandated by legal heirs to receive the payment on their behalf without
insisting on the legal documents up to the limit approved by the bank.

5.5.2 Interest on Term Deposit in Deceased Account

In event of death of depositor before the date of maturity the bank shall pay interest at the
contracted rate till the date of maturity. However, if the depositor dies after date of
maturity, the bank shall pay interest at saving deposit rate

5.6 Facilitation of Other Banking Services

5.6.1 Stop Payment Facility

The bank will accept stop payment by depositor in respect of cheques issued by them.
Charges as specified will be recovered.

5.6.2 Safe Deposit Lockers

It may be hired by individual or jointly. Nomination facility is available to the individuals

holding the lockers singly or jointly. In case of death of the holder the bank will release
the contents of the locker to the legal heirs if the nominations are not made.

5.7 Safeguarding Customer Interest

5.7.1 Customer Information

The bank shall not use the customer information. If the bank purposes to use such, it will
be strictly with the consent of account holders.

5.7.2 Secrecy of Customer Accounts

The bank shall not disclose details of the customer's account to third party without the
consent of the holder.

5.7.3 Insurance Cover for Deposits

All deposits are covered under insurance scheme offered by Deposit Insurance & credit
Guarantee Corporation of India subject to certain conditions.

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5.7.4 Redressal of Complaints & Grievances

Depositors having any complaint with regard to the services rendered, have a right to
approach authority designated by the bank for handling customer grievances.

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CHAPTER-6

LOANS AVAILABLE AT ICICI BANK

ICICI Bank offers wide variety of Loans Products to suit the requirements of the
customer coupled with convenience of networked branches/ ATMs and facility of
Echannels like Internet and Mobile Banking, ICICI Bank brings banking at doorstep. The
customers can select any of the loan products and provide their details online and the
representative will contact the customer for getting loans.

6.1 Home Loans

At ICICI Bank Home Loans, offer unbeatable benefits to ensure the customer get the best
deal without any hassles. As one of the leading home loan provider, ICICI Bank
understands how special building a new home is and Home Loan help the customer lay
the foundation for their dream home. ICICI offers the most convenient home loan plans
to suit the needs. With so many attractive features in every type of home loan they offer,
creating the home the customer always wanted is no longer a distant dream. Some of the
key benefits are:

• Guidance throughout the process

• Home loan amounts suited to your needs

• Home Loan tenure up to 20 years

• Simplified Documentation

• Doorstep Service

• Attractive interest rates

• Sanction approval without having selected a property

• Free Personal Accident Insurance

• Insurance options for your home loan at attractive premium

No matter what the requirement, they have an appropriate plan for everyone.

6.2 Personal Loans

Thinking of renovating your house? Yearning to buy a new Laptop? Need financial
assistance with marriage related expenses or your child higher education? An ICICI Bank
Personal Loan is your One-stop-shop for all your financial needs to fulfill any of your
desires.

Key Benefits of ICICI Bank Personal Loan:

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· Loan up to 15 lacks

· No security/guarantor required

· Faster Processing

· Minimum Documentation

· Attractive Interest Rates

· 12-60 Months repayment options

With the "Loan on Phone" facility, it is possible to secure a loan even without having to
visit your bank branch. If you have been an ICICI Bank customer for the past 9 months,
you might have a pre-approved loan offer waiting for you.

6.3 Car Loans

Turn your dream into reality. Own that new car you have always desired, with a little help
from us. We offer loans up to 100% of `on-road' cost on select models, and up to 95% of
the ex-showroom price on others. Our interest rates would pleasantly surprise you. What's
more, you can take up to 6 years to repay the loan. Worried about paperwork? Relax. The
process for getting a loan involves only a few simple steps and we will tailor-make the
loan to suit your needs.

1. Loan on Phone for Customers: Are you an ICICI Bank customer? Go for a
preapproved car loan. Call our Customer Care numbers or SMS "carloan” to 567676.

2. Loan on the Strength of Your Income: Submit income proofs as required and
avail of finance up to 100% of the `on-road' cost of the car!*

3. Loan in the absence of Income Proof: We offer car loan for customers without
income proof on producing the bank statement, loan repayment track record, etc.

4. Car Loans with Fixed and Floating Interest Rates: ICICI Bank now offers new car
loans with both fixed and floating interest rate options. The customer can opt for fixed
interest rate or floating interest rate for taking a car loan from ICICI Bank according to
his/her discretion.

6.4 Farm Equipment Loans

It is preferred financier for almost all leading tractor manufacturers in the country.
Financing farm equipments in over 381 locations spread across the country. It provides
fast processing of files with easy documentation. Flexible repayment options in tandem
with the farmer's seasonal liquidity. There are Monthly, Quarterly and Half-yearly

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repayment patterns to choose from. It also provides comfortable repayment tenures from
1 year to 6 years.

6.5 Construction Equipment Loan

Having funded infrastructure for over four decades, ICICI Bank understand the needs of
the customer better. We offer attractive financial packages for a customer planning to
take loan for construction equipment through our vast distribution network. Our products
will suit equally an entrepreneur to a large business house. We have tie up with the
leading manufacturers of construction equipments for a wide range of products. We offer
funding for the requirement of a new asset and we also take over existing high cost loans
at competitive terms for the customer.

6.6 Loan against Securities

Loans against securities offer you instant liquidity. You don't have to sell your securities.
All you have to do is pledge your securities in favor of ICICI Bank. We will then grant
you an overdraft facility up to a value determined on the basis of the securities pledged
by you. A current account will be opened and you can withdraw money as and when you
require. Interest will be charged only on the amount. This facility is available only on: -
a) Demat Shares b) withdrawn and the time span utilized. Mutual Funds Units c)
Insurance Policies d) UTI Bonds e) NSC/KVP (in Demat form only).

6.7 Loan against Property

Loan against Property is the perfect way to unlock the hidden value of your property.
With this loan, you can fully benefit from life's little surprises you may have earlier
passed over due to lack of funds. Live your dreams with a

Loan against Property!

This multi-purpose loan puts funds at your disposal to use as you wish. What's more, this
loan is available at a reasonable rate and can be repaid comfortably over as many as 15
years. The ICICI Bank's Loan against Property can be used for any purpose.

Expand your business!

No longer do you have to stifle your creative ideas. With funds at your disposal, you can
now expand your business without hesitation.

Get your child married!

Put aside all your monetary worries and celebrate your child's wedding with pomp and
splendor. Meet all your expenses with ease--when you take an ICICI Bank Loan against
Property.

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Send your child for higher studies!

Education is the cornerstone of your family's progress. With a Loan against Property, you
can empower your son or daughter to grow into an outstanding achiever.

Fund your dream vacation!

Do you want to visit the monuments of Europe or take your children to Disneyland? Wait
no more! Let your property fund your trip!

Renovate your home!

When you decide to renovate your home you want it be your joy and pride. With ICICI
Bank's Loan against Property you will not need to cut corners. Effortlessly redo your
home to match your dreams.

6.8 Farmer Finance

Providing finance to the farmer for his various needs of inputs and consumption in the
form of crop loans, dairy loans and loans for allied activities to agriculture like irrigation
etc. For input needs and auto loans (two, three and four wheeler) and personal loans for
consumption needs. The customer can also avail of working capital term loan for setting
up a poultry project. Flexible repayment pattern and tenure to align to the cash flow of the
customers.

6.9 Rural Education Loan

ICICI Bank Rural Educational Institution Finance (REI) caters to the need of privately
runs Educational Institution based out of Rural, Semi Urban and Outside city limit
locations. The product is designed to cater to the specific needs of the education
institutions. New products and features in the existing product are introduced based on
regular customer feedback.

CHAPTER-7

NON-DEPOSITORY SERVICES

7.1 Consumer Cards

Credit Cards- Credit Cards give you a smart way to shop, and offer you flexibility and
convenience in managing your finances. ICICI Bank credit cards provide a host of
exciting offers and benefits such as low interest rates, rewards programs, and a high
credit and cash limit. We offer different types of credit card to suit the different needs and
requirements for added features.

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Travel Card- Presenting ICICI Bank Travel Card. It is the hassle free way to Travel the
world. Traveling with US Dollar, Euro, Pound Sterling or Swiss Francs; Looking for
security and convenience; take ICICI Bank Travel Card. Issued in duplicate. Offers the
Pin based security. Has the convenience of usage of Credit or Debit card.

Debit Cards- The ICICI Bank Debit Card is a revolutionary form of cash that allows
customers to access their bank account around the clock, around the world. The ICICI
Bank Debit Card can be used for shopping at more than 3.5 Lakh merchants in India and
24 million merchants worldwide.

7.2 Commercial Cards

ICICI Bank Commercial Cards have been designed as payment solutions for large & mid-
sized organizations. A widely accepted concept internationally, Commercial Cards help
to better streamline payment processes & thus increase efficiencies.

Corporate Cards- ICICI Bank Corporate Cards offer better management of employee's
travel and entertainment expenditure; control on employee spends and facilitates cashless
transactions for the employee and the corporate. A Powerful Payment Solution for the
Corporate Travel and entertainment expenses constitute a significant part of a corporate
indirect operating expense. Our system facilitates the corporate to assign credit limits,
which helps control expenses of its employees. It provides the corporate with a
consolidated billing system. Instead of making payments to the individual employees, the
corporate has to make a single cheque payment to the supplier.

Prepaid Cards- ICICI Bank brings to you a complete bouquet of prepaid cards providing
payment solutions at your fingertips. ICICI Bank prepaid cards are a safe &convenient
way for associate payments, disbursements, gifting & small ticket transactions. Prepaid
cards are available on a VISA platform thus providing accessibility to over one lakh
merchant establishments & cash withdrawal from all VISA ATMs in India.

Purchase Card- The ICICI Bank Purchase Card is a card based payment solution that
streamlines and effectively controls procurement processes of corporate. Purchase card
can be used for expenses like Travel & Entertainment (T&E), Telecommunications,
MRO, Office products, Professional services & Utility payments. A credit limit is
assigned to the corporate on the card and the corporate can thereafter use the card for
making payments to all vendors & suppliers. The corporate gets a credit period of up to
50 days and can thereafter repay ICICI Bank as per the billing due date. And ICICI Bank
Purchase card can be used on any VISA or MasterCard Network. Purchase card can be
used for all Indirect Expenses that an organization would be incurring. These expenses
can be routed through the Purchase Card for extracting maximum benefits from the
solution. Mentioned below are some of the indirect expenditures that an organization
incurs:

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• Travel & Entertainment

• Telecommunications

• Utility Payments

• General MRO Goods

• Office products

• Computer and peripherals

• Professional services

• Lease and rental payments

Distribution Card- Distribution Cards are a unique receivables management solution we
offer on the supply chain front. The value proposition in this solution suits large
businesses and immensely enhances process efficiencies and receivable control. Your
company's invoice-to-cash cycle squeezes to 24 hours without any risk or collection
/Cash Management System hassles, and your intermediaries save on remittance costs
without having to open any account with us. All transactions pan-India get credited to the
company's account with all relevant MIS and other requirements. The dealer gets infusion
of capital and a flexible facility to settle transactions, enabling him to scale up his
business in a smarter way. A measure of the success of this product is that in the fuel
industry alone, we are doing a monthly business of Rs. 900 crore and growing at a very
fast clip.

Business Card-The ICICI Bank Business Card is aimed at SMEs as an enabler for their
business. The Business card is a smart alternative to cheques, cash, and personal credit
cards. With its purchasing convenience, cost savings, available credit, and detailed
reporting facilities, the ICICI Bank Business Credit Card offers what your business needs
to stay on top.

7.3 Mobile Banking

Bank on the move with ICICI Bank Mobile Banking. With ICICI Bank, Banking is no
longer what it used to be. ICICI Bank offers the Mobile Banking facility to all its Bank,
Credit Card, Demat and Loan customers. ICICI Bank Mobile Banking can be divided into
two categories of facilities: Alert facility: The ICICI Bank Mobile Banking Alert facility
informs you promptly of the significant transactions in your accounts. It keeps you
updated wherever you go.

Request facility: ICICI Bank Mobile Banking Request facility enables you to ask for
your account information.

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7.4 Phone Banking

ICICI bank offers phone banking facility to its customer. The toll free numbers are given
to the customer's on whom they can operate following types of banking:

They can enquire about their account balances.

They can know about last three transactions.

They can know about dishonor of cheques.

Customers can request for new cheque books.

Customers can block their ATM/ Debit cards.

Customers can stop the payments.

CHAPTER-8

DEMAT & INVESTMENTS

8.1 Demat Services

ICICI Bank Demat Services boasts of an ever-growing customer base of over 11.5 lakhs
account holders. In our continuous endeavor to offer best of the class services to our
customers we offer the following features:

E-Instructions: You can transfer securities 24 hours a day, 7 days a week through Internet
& Interactive Voice Response (IVR) at a lower cost. Now with "Speak to transfer", you
can also transfer or pledge instructions through our customer care officer.

Consolidation Demat Account: Dematerialize your physical shares in various holding

patterns and consolidate all such scattered holdings into your primary Demat account at
reduced cost.

Digitally Signed Statement: Receive your account statement and bill by email.

Corporate Benefit Tracking: Track your dividend, interest, bonus through your account
statement.

Mobile Request: Access your Demat account by sending SMS to enquire about Holdings,
Transactions, Bill & ISIN details.

Mobile Alerts: Receive SMS alerts for all debits/credits as well as for any request which
cannot be processed. Dedicated customer care executives specially trained at our call
centre, to handle all your queries.

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8.2 Investments

At ICICI Bank, we care about all your needs. Along with Deposit products and Loan
offerings, ICICI Bank assists you to manage your finances by providing various
investment options ranging from ICICI Bank Tax Saving Bonds to Equity Investments
through Initial Public Offers and Investment in Pure Gold. ICICI Bank facilitates
following investment products:

• ICICI Bank Tax Saving Bonds

• Government of India Bonds

• Investment in Mutual Funds

• Initial Public Offers by Corporate

• Investment in "Pure Gold"

• Foreign Exchange Services

• Senior Citizens Savings Scheme, 2004

You can invest in above products through any of our branches. For select products ICICI
Bank also provides the ease of investing through electronic channels like ATMs and
Internet (ICICIdirect.com)

8.2.1 ICICI Bank Bonds

• All ICICI Bank Bonds have been rated "AAA" by CARE and "LAAA" by ICRA
indicating the highest degree of safety for your money

• All Investment in ICICI Bank Tax Saving Bonds issued up to March 2005 are
eligible for tax rebate under Sec 88 to the full extent possible

• Bonds are listed on BSE, NSE

8.2.2 GOI Bonds

• 8% Savings Bonds (Taxable), 2003

• Low risk.

• Reasonable investment tenure.

• Nomination facility available.

• Cannot be traded in secondary market.

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• Interest income taxable.

8.2.3 Mutual Funds

Mutual Funds pool money of various investors to purchase a wide variety of securities
while pursuing a specific goal. Selection of Securities for the purpose is done by
specialists from the field. Returns generated are distributed to the Investors. Mutual Fund
Companies offer various schemes. Investors can choose any particular Fund/Scheme or
mix of Funds/Schemes depending upon their perception towards risk. Investment is done
on the basis of prevailing Net Asset Values of various schemes. Mutual Funds
Investments are subject to Market Risks.

Types of Funds Sold

We will help you determine which types of funds you need to meet your investment
goals. This may include the following types of funds:

• Debt: Liquid schemes, Income schemes, G-sec schemes, Monthly Income

Schemes etc.

• Equity: Diversified Equity Schemes, Sector Schemes, Index Schemes etc.

• Hybrid Funds: Balanced Schemes, Special Schemes - Pension Schemes, Child

education Schemes etc.

At ICICI Bank we will help you identify an appropriate mix of Mutual Fund schemes for
your portfolio using asset allocation strategies. Through ICICI Bank you can invest in
various schemes of multiple mutual funds with decent performance record. You can take
the aid of our various research reports on mutual funds and their schemes before choosing
a scheme for investment. ICICI Bank offers investment in Mutual Funds through
Multiple Channels. With ICICI Bank, you can invest in Mutual Funds through following
channels.

• ICICI Bank Branches

• ICICIdirect.com

Dedicated workforce to serve you

• Before being deputed, our officers complete a comprehensive training program

and, once deputed, they receive thorough instructions in financial planning skills
and techniques. Throughout their careers officers also attend programs to update
their skills.

• All officers in charge of Mutual Funds are certified professionals by AMFI

(Association of Mutual Funds in India)

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• Many of these officers also hold professional degrees like - MBA, CA, ICWA,
and CFA etc.

8.2.4 IPO

You can invest in IPOs online through www.icicidirect.com with same convenience of
investing in equities - hassle-free and with zero paper work. Also, get in-depth analyses
of new IPOs issues (Initial Public Offerings) which are about to hit the market. IPO
calendar, recent IPO listings, prospectus/offer documents and live prices will help you
keep on top of the IPO markets.

8.2.5 ICICI Bank Pure Gold

Gold has been traditionally the most favored form of investment for Indians. In fact,
India, even today is amongst the highest consumers of Gold in the world. However, the
Gold market remains largely unorganized with reliability and convenience remaining the
key issues for gold buyers in the country. ICICI Bank with its `Pure Gold' offer attempts
to bridge the gap between the need of the customers for buying gold and availability of an
organized avenue to satisfy that need, by taking care of the two key components -
Reliability and Convenience. Reliability 24 Carat ICICI Bank Pure Gold is imported from
Switzerland. This Gold carries a 99.99% Assay Certification, signifying highest level of
purity, as per international standards.

Convenience

ICICI Bank Pure Gold is competitively priced based on daily prices in the international
bullion market. Currently, gold is available in 2.5g, 5g, 8g, 20g and 50g categories.

8.2.6 FOREX Services

ICICI Bank's Foreign Exchange Services will help you organize your foreign exchange in
the most hassle free manner. Whether it’s Foreign Currency, Travelers Cheques or Travel
Card, ICICI Bank Foreign Exchange Services is a one-stop solution to your foreign
exchange requirement.

8.2.7 Senior Citizen's Savings Scheme

Scheme Details: Senior Citizens Savings Scheme (SCSS) is a Government of India 9%

interest offered to depositors. Since the product is offered by Govt of India, this product
is one of the most Safest Investment Option. Premature closure of account is possible
after one year from the date of opening the account.

• Advantages of Opening an SCSS Account with ICICI Bank.

• Large number of Branches.

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• Facility of Direct Credit of Interest to ICICI Bank Account.

In case the investor does not want to avail Direct Credit facility or ECS facility, 4 Post
Dated Cheques will be sent to Investor every year. Account Statement containing the
details of Deposit Balance & transactions.

ICICI DIRECT

ICICI Direct.com is a truly online share-trading site. Which means that from the time you
punch in a buy or sell trade on your computer to the final settlement in your account,
everything happens completely online? The 3-in-1 e-invest account integrates your
brokerage, bank and one or more depository accounts to make sure that you can do the
otherwise cumbersome share trading from the comfort of your home or office, at
absolutely any time of the day or night.

ORGANISATIONAL STRUCTURE

Anil Kaul, CEO – Retail

Ashish Kaul, Marketing analysist

Rajendra Sharma, Equity analysist &
MIS
Rohit Dhabolkar, Marketing & Branding
Sanjiv Saraff, Product Manager Abhijit
Ghosh, Sales zonal heads
Dharmesh Dixit, Project & Operation.
Prasanan Keshavan, Customer service &
operation Raman Addanki, Legal risk &
Complain Manoj Kabra, Audit & Cost
control. Harendra Kumar, Research
Joseph Abraham, HR.
Shikha Sing, Compensation.
Sujata Kapoor, Talent Management.
Aloma Sing, Strategic&Sourcing.
Malachi Lopes, HRIS
Sanjita Chougle, Payroll.
Santosh Nayak, Administration.

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Company’s Vision:
To make ICICI Direct the dominant online share trading by world class people and
services.

This we hope to achieve by:

• Understanding the needs of customers and offering them superior product and
service.
• Leveraging technology to service customers quickly and conveniently.
• Developing and implementing superior risk management and investment strategic
to offer sustainable and stable return to our shareholder.
• Providing and enabling environment to foster growth and learning for our
employees.
Company’s mission:
To judged by their sales and earnings growth rates than on the absolute value of their
sales and earnings. Look for companies that consistently grow faster than their peers.
Investors prefer companies that increase profit margins -- the percentage of sales that they
keep -- every year. This is accomplished either by lowering expenses or raising prices.
Look for companies that consistently find ways to squeeze more profits out of sales than
their peers. The financial health of a company is dependent on a combination of
profitability, short-term liquidity and long term liquidity. Companies, which are
profitable, but have poor short term or long term liquidity measures, do not survive the
troughs of the trade cycle.

SWOT ANALYSIS OF THE COMPANY:

Strengths

1. Management philosophy and commitment to maximize shareholders returns

2. Upgraded product design and development facilities to develop new products and aid
diversification

3. Ongoing activities to support up gradation of operational performance and rise in

productivity

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4. Team of talented and committed professionals available to improve company’s

performance.

Weakness

1. Competition from other players

2. Management of customer base

Opportunities

1. Exploration of new customer bases viz. rural customers

2. Up-gradation of the system and professionals

Threats, Risks & Concerns

1. Constant pressure to be cost competitive to meet customer expectations

2. Relentless pressure to maintain profitability

Analysis Based on Secondary Data

Percentage of customer’s preference over other depository services in ICICI Direct.com.

14%
4%
12%
50%
20%

Quality Service Safety Reach

Vast variety of ServiceNothing in Particular
From the above showing statistics it is observed that in the survey 50% customers justify
that ICICI capital Ltd. providing quality services as compare to other depository services.
It shows that out of 100 customers, 58 customers are small investors and 32 customers
are long term investors.

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Percentage of investors having ICICI DIRECT.COM

10%

32% 58%

Small InvestorsLong term investorsTrades

It shows that out of 100 customers, 58 customers are small investors and 32 customers are
long term investors.

Percentage of customers’ satisfaction of the services of ICICI Direct.Com

2%

10%
0%

24%

64%

Satisfied Mostly Satisfied Newither Satisfied/ Unsatisfied

Mostly UnsatisfiedUnsatisfied

According to survey 64% of customers are satisfied with the services of ICICI Direct
.com and 24% are mostly satisfied. Then we can say that ICICI Direct.Com offers quality
service that touches customers’ satisfaction level.

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Percentage of customers’ preference for ICICI Direct.Com over its competitors

8% 6%

2% 5%
4 2
1%
0
Quality Rates Nothing in Safet Reac
Service charged Particular y h
It shows that 52% of customers justify their preferences for ICICI Direct.com for quality
services, 10% for rates charged and 8% for safety. So, we can say that ICICI Direct.Com
provides quality services than its competitors. But in case of rate charges and safety ICICI
Direct.Com is behind its competitors.

FINDINGS

 ICICIdirect.com customers are more satisfied with the quality services. Holding
securities in electronic form gives some far-reaching advantages to the investors.

 ICICIdirect.com offers a wide choice of products for investing in the stock

market. It allows investing in shares, mutual funds and other financial products.
With ICICIdirect.com one can manage own de-mat and bank accounts directly
and independently.

 The depository participant will allow an investor to trade through any broker of
his choice registered with the stock exchanges connected with National Securities
Depository Ltd, what will have to provide the details of investor’s account with
Depository Participant.

 Investor can click to get online information on their open orders and traders i.e.
orders that are routed to exchange are waiting in the queue to be executed can be
viewed for their status.

 Transaction details for the traders done in the last month are available online.

 Printed account statements too are available for earlier.

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SUGGESTIONS

 Some customers feel that they are trained for ICICI Direct.Com demo. Many
customers feel that batch of 15 are good for ICICI Direct.Com training.

 Survey reveals that most of the customers are not aware of the service of the
Mutual Fund. ICICI Capital Services Ltd. and the normal tendency of the
customer are both investing in shares and in Mutual Funds are one and the same.
So for this ICICI Capital Services Ltd., should create an awareness of what
exactly mean by Mutual Funds and all other services of ICICI Capital Services
Ltd.

 After getting the printouts of the holding statement, dispatch of the same should
be taken place with no delay and this can be cross verified with the sender
(dispatch section).

 Customers are facing overcrowding, non-availability of telephone lines, so proper

measures should be taken to overcome these problems.

 The ICICI official should conduct regular training demo classes for the new
account holders.

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CHAPTER-9

LIFE AND GENERAL INSURANCE SERVICES

Life insurance is a form of insurance that pays monetary proceeds upon the death of the
insured covered in the policy. Essentially, a life insurance policy is a contract between the
named insured and the insurance company wherein the insurance company agrees to pay
an agreed upon sum of money to the insured's named beneficiary so long as the insured's
premiums are current. With a large population and the untapped market area of this
population insurance happens to be a very big opportunity in India. Today it stands as a
business growing at the rate of 15-20% annually. Together with banking services, it adds
about 7 percent to the country’s GDP. In spite of all this growth statistics of the
penetration of the insurance in the country is very poor. Nearly 80% of Indian
populations are without life insurance cover and the health insurance. This is an indicator
that growth potential for the insurance sector is immense in India. It was due to this
immense growth that the regulations were introduced in the insurance sector and in
continuation "Malhotra Committee" was constituted by the government in 1993 to
examine the various aspects of the industry. The key element of the reform process was
participation of overseas insurance companies with 26% capital. Creating a more
competitive financial system suitable for the requirements of the economy was the main
idea behind this reform. Since then the insurance industry has gone through many
changes. The liberalization of the industry the insurance industry has never looked back
and today stand as one of the most competitive and exploring industry in India. The entry
of the private players and the increased use of the new distribution are in the limelight
today. The use of new distribution techniques and the IT tools has increased the scope of
the industry in the longer run. Insurance is the business of providing protection against
financial aspects of risk, such as those to property, life health and legal liability. It is one
method of a greater concept known as risk management -which is the need to mange
uncertainty on account of exposure to loss, injury, disadvantage or destruction. Insurance
is the method of spreading and transfer of risk. The fortunate many who are exposed to
some or similar risk shares loss of the unfortunate. Insurance does not protect the assets
but only compensates the economic or financial loss. In insurance the insured makes
payment called "premiums" to an insurer, and in return is able to claim a payment from
the insurer if the insured suffers a defined type of loss. This relationship is usually drawn
up in a formal legal contract. Insurance companies also earn investment profits, because
they have the use of the premium money from the time they receive it until the time they
need it to pay claims. This money is called the float. When the investments of float are
successful they may earn large profits, even if the insurance company pays out in claims
every penny received as premiums. In fact, most insurance companies pay out more
money than they receive in premiums. The excess amount that they pay to policyholders
is the cost of float. An insurance company will profit if they invest the money at a greater
return than their cost of float. An insurance contract or policy will set out in detail the

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exact circumstances under which a benefit payment will be made and the amount of the
premiums.

Classification of Insurance:

The insurance industry in India can broadly classify in two parts. They are.

1) Life insurance:

Life insurance can be defined as "life insurance provides a sum of money if the person
who is insured dies while the policy is in effect". In 1818 British introduced to India, with
the establishment of the oriental life insurance company in Calcutta. The first Indian
owned Life Insurance Company; the Bombay mutual life assurance society was set up in
1870.the life insurance act, 1912 was the first statuary measure to regulate the life
insurance business in India. In 1983, the earlier legislation was consolidated and amended
by the insurance act, 1938, with comprehensive provisions for detailed effective control
over insurance. The union government had opened the insurance sector for private
participation in 1999, also allowing the private companies to have foreign equity up to
26%. Following the opening up of the insurance sector, 12 private sector companies have
entered the life insurance business.

Benefits of life insurance:

Life insurance encourages saving and forces thrift.

It is superior to a traditional savings vehicle.

It helps to achieve the purpose of life assured.

It can be enchased and facilitates quick borrowing.

It provides valuable tax relief.

2) Non-life (general) Insurance:

Triton insurance co. ltd was the first general insurance company to be established in India
in 1850, whose shares were mainly held by the British. The first general insurance
company to be set up by an Indian was Indian mercantile insurance co. Ltd., which was
stabilized in 1907. There emerged many a player on the Indian scene thereafter. The
general insurance business was nationalized after the promulgation of General Insurance
Corporation (GIC) OF India undertook the post-nationalization general insurance
business.

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ICICI PRUDENTIAL

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a
premier financial powerhouse and prudential plc, a leading international financial
services group headquartered in the United Kingdom (UK). The company brings together
the local market expertise and financial strength of ICICI Bank and Prudential's
International life insurance experience. The company was granted a certificate of
Registration by the IRDA on November 24, 2000 and eighteen days later, issued its first
policy on December 12. ICICI Prudential was amongst the first private sector insurance
companies to begin operations in December 2000 after receiving approval from Insurance
Regulatory Development Authority (IRDA).From its early days, ICICI Prudential seemed
to have the wherewithal for a large-scale business. By March 31, 2002, a little over a year
since its launch, the company had issued 100,000 policies translating into premium
income of approximately Rs. 1,200 million on a sum assured of over Rs.23 billion. When
the company began its operations, the need was to build a brand that was relatable to,
symbolized trust and was easily recognized and understood. It launched a corporate
campaign ICICI Prudential also made using the theme of `Sindoor' to epitomize
protection, trust, togetherness and all that is Indian; endearing itself to the masses.

ICICI Prudential's product range has been developed on the understanding that different
people have their own sets of needs at various stages of their lives. It has thus built a
flexible portfolio of products that can be customized to cater to varying needs of people at
each stage, and thus ensure protection in every step of life. The company's philosophy has
been to help customers understand their financial needs and work closely with them to
customize a product that would meet. Advisors can offer a complete range of products
-Savings plans, Child plans, Market-linked plans, Protection plans, and Retirement plans
- and tailor a flexible solution to meet customers' changing needs at every stage of life. In
fact, ICICI Prudential was the first to un-bundle product benefits, pioneering the concept
of `riders' and soon after introduces comprehensive market-linked and retirement plans.
ICICI Prudential has launched a handful of products that are analyzed below:

ICICI Prudential's life insurance products may be loosely categorized under three forms:

Pure life insurance: Products without an investment angle to them; a product that is a mix
of a cumulative investment scheme and an insurance product; and, finally, standard
products such as money-back and endowment policies.

Single Premium Bond: The Single Premium Bond is the name of a policy that combines
the features of an investment in a cumulative deposit scheme with that of an insurance
product. Policy-holders are required to pay a one-time premium based on a target sum
assured. At maturity, the policy-holder gets the sum assured and guaranteed additions that
work out to a compound return of 4.5 per cent the sum assured. The insurance part of the
package comes in the form of death benefits that are paid in the case of the demise of the

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policy-holder. The size of the death benefit is linked to the number of years left for the
policy to expire. On maturity date, the maturity value is also paid in addition to the death
benefits that would have been paid earlier.

Life Guard policies: The company offers two pure life insurance products that have an
umbrella name, Life Guard. One of them involves a one-time premium for which there
are no maturity benefits. The other requires regular premium payments that are returned
at the end of the policy. Life Guard offers absolutely no investment-related return and is
suitable for individuals looking for an unadulterated insurance package.

Insurance Solutions for Individuals

ICICI Prudential Life Insurance offers a range of innovative, customer-centric products

that meet the needs of customers at every life stage. Its products can be enhanced with up
to 5 riders, to create a customized solution for each policyholder.

Savings Solutions

· Secure Plus is a transparent and feature-packed savings plan that offers 3 levels of
protection.

· Cash Plus is a transparent, feature-packed savings plan that offers 3 levels of protection
as well as liquidity options.

· Save `n' Protect is a traditional endowment savings plan that offers life protection
along with adequate returns

· CashBak is an anticipated endowment policy ideal for meeting milestone expenses like
a child's marriage, expenses for a child's higher education or purchase of an asset.

· LifeTime and LifeTime II offer customers the flexibility and control to customize the
policy to meet the changing needs at different life stages. Each offer 4 fund options
-Preserver, Protector, Balancer and Maximiser.

· LifeLink Super is a single premium Unit Linked Insurance Plan which combines life
insurance cover with the opportunity to stay invested in the stock market.

· Premier Life is a limited premium paying plan that offers customers life insurance
cover till age of 75.

· InvestShield Life is a Unit Linked plan that provides capital guarantee on the invested
premiums and declared bonus interest.

· InvestShield Cash is a Unit Linked plan that provides capital guarantee on the invested
premiums and declares bonus interest along with flexible liquidity options.

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· InvestShield Gold is a Unit Linked plan that provides capital guarantee on the invested
premiums and declares bonus interest along with limited premium payment terms.

Protection Solutions

· LifeGuard is a protection plan, which offers life cover at very low cost. It is available
in 3 options -level term assurance with return of premium and single premium.

·HomeAssure is a mortgage reducing term assurance plan designed specifically to help

customers cover their home loans in a simple and cost-effective manner.

Child Plans

· SmartKid education plans provide guaranteed educational benefits to a child along

with life insurance cover for the parent who purchases the policy. The policy is designed
to provide money at important milestones in the child's life. SmartKid plans are also
available in unit-linked form - both single premium and regular premium.

Retirement Solutions

· ForeverLife is a retirement product targeted at individuals in their thirties.

· SecurePlus Pension is a flexible pension plan that allows one to select between 3 levels
of cover.

· Market-linked retirement products

· LifeTime Pension II is a regular premium market-linked pension plan.

· LifeLink Pension II is single premium market linked pension plan.

· InvestShield Pension is a regular premium pension plan with a capital guarantee on the
investible premium and declared bonuses

· Golden Years: is a limited premium paying retirement solution that offers tax benefits
up to Rs 100,000 u/s 80C, with flexibility in both the accumulation and payout stages.

Health Solutions

· Health Assure and Health Assure Plus: Health Assure is a regular premium plan
which provides long term cover against 6 critical illnesses by providing policy holder
with financial assistance, irrespective of the actual medical expenses. Health Assure Plus
offers the added advantage of an equivalent life insurance cover

· Cancer Care: is a regular premium plan that pays cash benefit on the diagnosis as
well as at different stages in the treatment of various cancer conditions.

Group Insurance Solutions

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ICICI Prudential also offers Group Insurance Solutions for companies seeking to enhance
benefits to their employees.

ICICI Pru Group Gratuity Plan: ICICI Pru's group gratuity plan helps employers fund
their statutory gratuity obligation in a scientific manner. The plan can also be customized
to structure schemes that can provide benefits beyond the statutory obligations.

ICICI Pru Group Superannuation Plan: ICICI Pru offers a flexible defined contribution
superannuation scheme to provide a retirement kitty for each member of the group.
Employees have the option of choosing from various annuity options or opting for a
partial commutation of the annuity at the time of retirement.

ICICI Pru Group Term Plan: ICICI Pru's flexible group term solution helps provide
affordable cover to members of a group. The cover could be uniform or based on
designation/rank or a multiple of salary. The benefit under the policy is paid to the
beneficiary nominated by the member on his/her death.

Flexible Rider Options, ICICI Pru Life offers flexible riders, which can be added to the
basic policy at a marginal cost, depending on the specific needs of the customer.

1. Accident and disability benefit: If death occurs as the result of an accident during
the term of the policy, the beneficiary receives an additional amount equal to the rider
sum assured under the policy. If the death occurs while traveling in an authorized mass
transport vehicle, the beneficiary will be entitled to twice the sum assured as additional
benefit.

2. Accident Benefit: This rider option pays the sum assured under the rider on death
due to accident.

3. Critical Illness Benefit: Protects the insured against financial loss in the event of 9
specified critical illnesses. Benefits are payable to the insured for medical expenses prior
to death

4. Income Benefit: This rider pays the 10% of the sum assured to the nominee every
year, till maturity, in the event of the death of the life assured. It’s available in SmartKid,
SecurePlus, and CashPlus.

5. Waiver of Premium: In case of total and permanent disability due to an accident,

the premiums are waived till maturity. This rider is available with SecurePlus and
cashplus.

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MARKET SHARE

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MISSION AND VISION

Their vision is to make ICICI Prudential Life Insurance Company the dominant new
insurer in the life insurance industry. This they hope to achieve through their commitment
to excellence, focus on service, speed and innovation, and leveraging our technological
expertise.

The success of the organisation will be founded on its strong focus on values and clarity
of purpose. These include:

• Understanding the needs of customers and offering them superior products and
service
• Building long lasting relationships with their partners
• Providing an enabling environment to foster growth and learning for their
employees
• And above all building transparency in all our dealings.

They believe that they can play a significant role in redefining and reshaping the sector.
Given the quality of their parentage and the commitment of their team, they feel that
there will be no limits to their growth.

MANAGEMENT TEAM

Management

Board of Directors

The ICICI Prudential Life Insurance Company Limited Board comprises reputed people
from the finance industry both from India and abroad.

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COMPARISION OF CHANGES IN ASSET AMONG COMPETITORS

Analysis

• Asset creation wise it is ranked 4th among all the competitors

• Faster Growth rate compared to most of the competitors
• It is one of the major contributor to the revenue of ICICI Bank

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Findings

On an analysis and evaluation of the Secondary data collected the following findings
were found.

· Before establishment of private concerns the share of LIC was 22% hence there is a
wide scope for private concerns to enter in to market.

· Total 100 respondents have been approached out of which 75 are the potential
respondents who have shown interest for investment and finance plan

· Above 20% of respondents are shown interest for investment and financial plan

· About 12.67% of respondents have already been covered by other insurance

companies.

· About 10% of respondents are newly employed or trainees.

· About 10% of respondents interested for investment plan after knowing ICICI
PRUDENTIAL LIFE INSURANCE products.

ICICI LOMBARD

ICICI Lombard General Insurance Company Limited is a joint venture between ICICI
Bank Limited and the US-based $ 26 billion Fairfax Financial Holdings Limited. ICICI
Bank is India's second largest bank; while Fairfax Financial Holdings is a diversified
financial corporate engaged in general insurance, reinsurance, insurance claims
management and investment management. Lombard Canada Ltd, a group company of
Fairfax Financial Holdings Limited, is one of Canada's oldest property and casualty
insurers. ICICI Lombard General Insurance Company received regulatory approvals to
commence general insurance business in August 2001.

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MARKET SHARE

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Major Competitors

1. Royal Sundaram Alliance Insurance Company Limited.

2. Bajaj Allianz General Insurance Company Limited.
3. Cholamandalam General Insurance Company Ltd.
4. TATA AIG General Insurance Company Ltd.
5. Reliance General Insurance Company Limited.
6. IFFCO Tokio General Insurance Co. Ltd.
7. Export Credit Guarantee Corporation Ltd. 8. HDFC-Chubb General Insurance
Co. Ltd.

FACTS/FINDINGS

1. As the people think that insurance is a tool to protect their family & a tax saving
device. They are aware of the fact & realizing its, importance. The company should try to
expand & build up its infrastructure because there is a large potential for insurance in
India.

2. Company should come up with its branch in Delhi; with the objective and goals to
meet the demands & expectations of the public. Because the entrance of private players
will increase the competition and it would be a tough task to secure a good position in
market.

3. Since Reliance Life Insurance is leading with several companies' policies it

should be easy for them to penetrate into the market and secure a good position if they
pay greater attention to the service part provided to their customer and thereby forming a
long and trusted relationship.

4. As seen from the survey that at present 70% of the customer are having insurance
policy out of which 87.5% of the customer are planning for new investments. So it can be
a good potential for the company and they should make an attempt to trap these
customers.

5.43% of the customer is even ready to go for insurance if a service provider away from
their home is providing it. But intend they should provide good products and services.
The company should try to convince these customers and get them in its favor.

CHAPTER-10

OTHER ICICI INITIATIVES

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ICICI VENTURE FUNDS MANAGEMENT COMPANY LIMITED

With the recent spurt in entrepreneurship in the country, venture capital and private
equity capital financing are fast attaining a role of prominence. Uniquely positioned to
take the Indian entrepreneur further is ICICI Venture Funds, the wholly owned subsidiary
of ICICI, with its keen understanding of the Indian Financial Markets, entrepreneurial
ethos, access to global capital and a network through influential global alliances. Strong
parentage and affiliates provide ICICI Venture with access to a broad spectrum of
financial and analytical resources. An affiliation with (Trust Company of the West)
provides a platform for networking Indian Companies to global markets and technology.
ICICI Venture Funds currently manages / advises 11 Funds aggregating US$ 400 million,
making it the most significant private equity investor in the country. The investment
experience of ICICI Venture’s professionals is the foundation its strengths and success in
several areas of investing. ICICI Venture seeks to invest in opportunities where its
network through ICICI and TCW can create value for all involved. ICICI Venture’s
primary investment objective is capital investment through investments by way of equity
or equity-related securities in unlisted companies with significant growth potential. ICICI
Venture’s investments span a broad spectrum of industries and stages of development, the
investment focus being on

• Information Technology
• Biotechnology and Life Sciences
• Media and entertainment
• Retail Services

ICICI SECURITIES AND FINANCE COMPANY LIMITED

Formed in 1993 when ICICI’s Merchant Banking Division was spun off into a new
company, I-SEC today are India’s leading Investment Bank and one of the most
significant players in the Indian capital markets. Its client list includes some of the best
known, most respected names in Indian business and industry, and I-SEC offers them
what are probably the widest, most in-depth range of services in the market, with the
highest standards of professionalism. Backed by a strong distribution network, I-SEC is
acknowledged to be at the forefront of all new developments in the Indian debt market.

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ISEC Research Reports, Compendia, Updates, I-BEX and sovereign Bond Index, have
become industry standards, sought after by finance, business and reputed publications
alike. The Project Finance Group has helped take strategic projects from the drawing
board to financial closure, leveraging the expertise of parent organization. I-SEC has also
executed several assignments in M & A, including business valuations, spin-offs and
mergers, for both domestic and overseas clients. The range of products offered by I-SEC
includes:

• Corporate Finance – Mergers and Acquisitions, Equity, Bidding (especially for

Telecom Projects)
• Fixed Income – Primary Dealership, Debt Research
• Equities – Lend management, Underwriting, Syndication, Private Equity
placement, Sales, Trading, Broking, Sect oral and Company Research I - SEC
• Continues to sustain a steady rate of growth by offering the most extensive range
of services combined with unrivalled standards of professionalism.

ICICI BROKERAGE SERVICES LIMITED

Set up in March 1995, ICICI Brokerage Services is a 100% subsidiary of I-SEC. It

commenced its securities brokerage activities in February 1996 and is registered with the
National Stock Exchange of India Limited and The Stock Exchange, Mumbai. We are a
joint venture between ICICI and the leading financial services provider in India, and
prudential plc of U.K., one of the finest Life insurance companies in the world. Together
we provide you with an extensive range of insurance products to suit your various needs
at various life stages. We aim to keep you covered, at every step in life. Their policies are
need-specific and address particular age groups. This means that no matter where in life
you are, we offer specific products to suit your needs for savings, protection and
retirement. Our products can be categorized into the following:

• Saving plans
• Protection plans
• Retirement plans

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ICICI PERSONAL FINANCIAL SERVICES LIMITED

ICICI Personal Financial Services Limited (ICICI PFS), formerly ICICI-Credit, was one
of the first four companies to obtain registration as a Non-Banking Financial Company
(NBFC) from the Reserve Bank of India (RBI) on September 10, 1997 under the new
section 45IA of the Reserve Bank of India Act, 1934. During the year 1998-99, there was
a significant shift in the Company’s operation from leasing to hire purchase to
distribution and servicing of all rental products for the ICICI Group. It is now a focal
point for marketing and distribution of all rental asset products for ICICI, including auto
loans, consumer durable finance and other financial products. The Company has thus
become part of ICICI’s retail strategy aimed at offering a comprehensive range of
products and services to retail customers. In view of this reorientation of the business, the
name of the Company was changed from ICICI Credit Corporation to ICICI Personal
Financial Services Limited (ICICI PFS) effective March 22, 1999.

ICICI CAPITAL SERVICES LIMITED

ICICI Capital Services Ltd. was incorporated in the name of SCICI Securities Ltd. on
September 24, 1994 as a wholly owned subsidiary of erstwhile SCICI Ltd. with the
objective of providing stock broking services to the institutional clients and undertaking
activities such as underwriting, primary market placements & distribution industry &
company research etc; After the amalgamation of SCICI with ICICI effective from April
1, 1996, resulting in the change of the name. The company is mandated, under review by
ICICI, to carry out on its behalf the retail resource raising activities and to provide front
office services related to all retail and semi retail liability products of ICICI. The
company also operates the network of ICICI Centers being set up by ICICI. As on date
the company has set up 91 centers across the country.

ICICI INFOTECH

ICICI InfoTech is a leading provider of end-to-end IT solutions. We have an in-depth

experience of having worked on varied technologies with leading corporations
worldwide. Our service portfolio includes the following:

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• IS & IT Consulting
• Software Design and Development
• Enterprise Application Integration
• Value Chain Management Solutions (SCM, CRM etc.)
• Application Re-engineering and Management
• Knowledge Management Solutions
• Embedded System Applications
• Technology Incubation, IT-enabled Services & IT Outsourcing

ICICI Capital Ltd.

Its products are
 RBI Bonds
 E-invest (ICICI Direct.com)
 Fixed Deposits
 Mutual Funds
 Bonds
 Demat
 Equity IPO

MICRO FINANCE

Need for Micro Finance

Evolution of Microfinance in India

• Microfinance has been in practice for ages (though informally).

• Legal framework for establishing the co-operative movement set up in 1904. 
Reserve Bank of India Act, 1934 provided for the establishment of the 
Agricultural Credit Department.
• Nationalization of banks in 1969
• Regional Rural Banks created in 1975.
• NABARD established as an apex agency for rural finance in 1982.  Passing of
Mutually Aided Co-op. Act in AP in Considerable gap between  Demand and
supply for all financial services.

Majority of poor are excluded from financial services. This is due to, the following
reasons:
1. Bankers feel that it is fraught with risks and uncertainties.
2. High transaction costs.

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3. Unfavorable policies like caps on interest rates which effectively limits.

While MFIs have shown that serving the poor is not an unviable proposition
There are issues that have constrained MFIs while scaling up. These include
1. Lack of an appropriate legal vehicle.
2. hLimited access to equity.
3. Difficulty in accessing low cost on-lending funds (as of now they are unable to
Offer savings services in a legitimate manner).

· Limited access to Capacity Building support which is an important variable in terms of

quality of the portfolio, MIS, and the sustainability of operations.
· About 56 % of the poor still borrow from informal sources.
· 70 % of the rural poor do not have a deposit account.
· 87 % have no access to credit from formal sources.
· Less than 15 % of the households have any kind of insurance. ·
Negligible numbers have access to wealth.

Features of Indian MF
· About 60 % of the MFIs are registered as societies.
· About 20 % are Trusts.
· About 65 % of the MFIs follow the operating model of SHGs.
· Large concentration in South India.
· 600 MFI initiatives have a cumulative outreach of 1.25 crore poor households
· NABARD's bank linkage program has cumulatively reached a total of 9.4 lakh
· SHGs with about 1.4 crore households.

MF is a Tool for Poverty Reduction ·

Working capital.
· Household investment in diversification.
· Better balance sheets.
- More assets
- Secure stores of value
· More profitable economic activities.
· More productive savings strategies.
. Lower cash transactions costs.

Constraints to scaling access for the poor

Information Asymmetry High Costs of Intermediation

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• Inability of the poor to offer • Low value, high volume

collateral. transactions.
• No credit history available. • High Transaction Costs (8-20%) ·
• Potential success of interprises is Low use of technology.
difficult to evaluate. · High supervision costs.
· High cash handling costs.

TWO INNOVATIVE MODELS

· THE DIRECT-ACCESS-BANK LED MODEL

- Promotion of Self Help Groups.
- Leveraging upon the merger with the Rural Banking institution Bank of Madura

· THE INDIRECT CHANNEL PARTNERSHIP

- With Micro-Finance Institutions

Hence, the ICICI Bank Partnership

ICICI MFI’S
• Provider of loan funds, mezzanine • Undertakes loans origination,
equity and technology. monitoring and collection.
• Lends directly to clients with risk • MFI provided OD limit by bank
sharing by NGO/MFI equivalent to amount of risk sharing,
which is drawn in event of default
up to specified limit.

Microcredit

· In addition, ICICI Bank has been expanding its microcredit portfolio through

- Partnership model

- Portfolio buyouts

...a steady growth in group lending through MFIs continues

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ICICI Venture Capital

· Challenge in scaling up microfinance sector is lack of equity capital

· To cover this shortage, ICICI Bank is encouraging venture capitalists to start entering
the sector.

· Lok Capital at Delhi

· Aavishkar at Mumbai

· Bell Weather at Hyderabad

The Funds

· Bell Weather, Hyderabad has made 3 equity commitments for start up and decided to
raise fund amount from US $10mn to US $25mn.

· Lok capital mobilizes and directs capital fund to finance microfinance initiatives and
technical support for MFI’s.

· Aavishkar provides micro-equity funding of $25000 to $100000.

CHAPTER-11 ANALYSIS

 Casa (current and saving a/c) ratio is 28.7% for FY’09 this quarter compared to
FY’08 which was 26.1%.so, there is a change of 2.6%.

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 Which means increase in net interest margin because no interest is charged

on current a/c and a minimal interest of 3.5% for saving a/c.
 This reflects the operating efficiency of the organization.

Highlights

• 35% increase in profit after tax to Rs. 6.15 billion in Q4-2008 from Rs. 4.55
billion in Q-2007.
• 22% increase in profit after tax to Rs. 20.05 billion in FY2008 compared to 16.37
billion in FY2007.
• Improvements in net interest margin to 2.6% in FY2009 compared to 1.9% in
FY2008.
• 79% increase in fee income to Rs. 20.98 billion in FY2008 from 11.75 billion
inFY2007.
• 46% year-on-year growth in advances and 34% growth in total assets.
• 68% year-on-year growth in retail portfolio, now constituting 61% loans.
• Deposit growth of 47% in FY2008 compared to system deposit growth of 14%.
• Reduction in net NPA ratio to 2% on March 31, 2009 from 2.9% on March 31,
2004.
• Increase in operating margin 14.45% in FY’08 compared to 13.33% FY’07.

INTERPRETATION ICICI - RATIO ANALYSIS

· Net Interest Income / Total funds have increased primarily reflecting an increase of
the average volume of Interest earning assets.

· In Feb 2008, In accordance with RBI guidelines for Accounting for securitization of
standard assets, ICICI accounts for any loss arising on Securitization immediately at the

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time of sale and the profit/premium arising on account of securitization is amortized over
the life of the asset.

· All direct marketing agency expenses, on automobile loans and other retail loans are
reported separately under "Not interest expense". These commissions are expended and
not amortized over the life of the loan.

· Interest income/total funds have increased from 6.39% to 6.56% in the end, 2008 is
primarily due to an Increase in the average Interest earning assets. This is due to the
increase in allowances (626) in spite of prime lending rate increase by 225 basis points in
the period of 2007-2008, benchmark rate for floating home loans has increased by 150
points in the same period.

· Interest expenses has increase during 2007-2008 is primarily due to an increase of

55.2% in average interest-bearing liabilities to Rs. 2354.7 billion in the six-months period
ended sep 30, 2008.

· Cost of funds to 6.3% from 1511.3 billion in 2007 and an increase of 50 basis points in
the six month period ended Sep 30, 2008 from 5.8% in the six month period ended Sep
30, 2008.

· Total deposits increased consequence to the general increases in interest rates

reflecting a tight systemic liquidity scenario and increase in deposit rates for retail and
other customers in Fiscal 2008.

· Non interest has increased and is stable during 2007-2008 due to increase in
commission, exchange and brokerage and a 12.5% increase in other income, offset, in
part by a 22.5% decline in house income, due to growth in retail banking fee income
arising from retail assets like home loans and credit cards and retail liability product
income like account servicing charges, increase in transaction banking fee and fee
income.

· Other income decreased comparatively [25.41(2006) 27.33 (2007) 26.72 (2008)] which
includes the unrealized gain/loss on certain derivative transaction. The lower capital gain
is a result of the sharp fall in the equity markets in May 2008 and adverse conditions in
the debt markets.

· Operating expenses increases are primarily due to the increased volume of business,
primarily in retail banking and includes maintenance of ATMs, credit card related
expenses; call centre expenses and technology expenses.

· The number of branches excluding foreign branch and OBVSL and extension counter
increased to 614 at March 31, 2008 from 562 at March 31,2007.

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· The number of savings deposit and deposits from outside India has increased to a good
extent.

· Provisions and contingencies (excluding provisions for tax) increases in primarily due
to the significantly higher level of amortization of premium on government securities in
fiscal 2006, investments in government securities and lower level of writ backs in fiscal
2008.

· With effect from the quarter ended Dec 31, 2007 RBI increased the requirement of
general provisioning on standard loans (excluding loans to agriculture sector and small
and medicines enterprises) to 0.40% compared to 0.25% applicable till September 30,
2007, in accordance with this, the bank has made general provision of Rs. 3.39 billion in
fiscal 2008.

· Operating profit before provision and tax ratio increase of 2.23% from 2.09% (2008) is
primarily due to increase in net interest income, increase in fee income increase in
treasury income and of operating expenses.

· Employee expenses have been increased primarily due to the number of employees.
But her profit per employee is being decreased (1, 99,853) March 2008 to (1,115,157)
March 2007 to the extent 10.52% decreasing trend is foreseen.

FINDINGS, SUGGESTIONS & CONCLUSION

Analysis through Primary Data

I went to 30 people and made a survey related to Universal Banking

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Do you have an account with ICICI bank?

40%

60% Yes
No

If yes, Since how many years have you been

attached with ICICI bank?

28%

Less than 3 years

55% 3-7 years
12% More than 7 years
5% Don't have an account

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Which one is your preferred channel for

banking? (Any bank)

80

60

40

20

0
Internet Banking Mobile Banking Up Front in the Branch

Which financial service you give preference

above else?

14%
Insurance (Life, General, etc)
20%
Investment (Mutual Fund,
66% Stock-DEMAT, Fixed assets, etc)
Commercial Banking
(Primaryfunctions
)

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When you are choosing financial product

and services, which factors are most to you?
Customer Service
Cost of service
Rewards
Security
Branch Location
Company's Reputation
Mobile Banking
Online Banking
Bill Pay
Interest Rates

0 10 20 30 40 50 60 70 80 90

What do you think about clubbing all the

financial services under one roof?

12%

52% Effective/Satisfying/Saves time

36% Its okay
Hectic/Very Confusing

Findings

It was found from the study that bank believes in quality service rather than quantity of
service.

The officials employed are very much enthusiastic about their job.

The officials try to make best relation with the customers.

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There is separate counter for NRI services.

The limit of cash vault is Rs. 10, 00,000 for a day.

The registers and files are maintained on a daily basis.

The registers are maintained in a well organized manner.

The marketing strategy of the bank is very attractive.

The bank always tries to attract customers with innovative offers.

The bank is very keen to implement 5's plan in its entire branch.

· ICICI and SBI credit deposit ratio is on the side though ICICI banks show a little
decreasing trend to the extent of 2.24 % over mar2007 _ mar 2008. · Both the bank
investment deposit ratio is on the declining trend

· Both the banks has shown better utilization of cash portfolio

· ICICI bank Interest expenses to interest earned remains the same Over 2 Years
whereas SBI shows reduction.

· Other Income ratio remains fluctuation in both the banks.

· Operating expenses to total income shows a decreasing trend in ICICI bank whereas
it was on the rising side in SBI.

· Interest income to total funds shows rising mode in ICICI whereas In SBI more or less
it remains at the level; The ratio of interest expenses to total funds shows an increase in
Value in ICICI Bank whereas in SBI interest expenses shows a Rising mode.

· The ratio of Non Interest income remains the same for ICICI for The past 2 Years
whereas in SBI at shows a decline.

· The stock witnesses some selling pressure in the coming days in ICICI Bank.

Conclusion:

ICICI Bank has strong banking operations. They believe in customer satisfaction in every
possible way. They are focused on quality of products and services rather than quantity of
products and services. They have a strong banking solution such as FINACLE which was
developed by Infosys. The bank is rapidly growing. They have an aggressive marketing
strategy. The bank provides speedy way of services to its customer with satisfaction. The
five plans really help in the operation of the organization. The bank has spent millions of
rupees in different types of investments on behalf of its customers. The bank is well

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known for its 90 days strategies. '90 days strategies' means whatever the bank wants to
implement, implements within 90 days.

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BIBLIOGRAPHY

www.wikipedia.com

www.rbi.org.in

www.moneycontrol.com

www.nseindia.com

www.ndtv.com

www.indiainfoline.com

www.icicibank.com

www.google.com

Economic times

Business world

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