Project Report On Icici Bank
Project Report On Icici Bank
Project Report On Icici Bank
ON
ICICI BANK
1 MARKETING PROJECT COMPANY: ICICI BANK
SUBMITTED TO:
SUBMITTED BY:
PROF. K.C.PRAKASH
2 yuvraj
b07bs4991
SECTION-E
ICFAI BUSINESS SCHOOL HYDERABAD
NDEX
• BANKING IN INDIA
• COMPANY PROFILE
• MARKET SHARE
• RECOMMENDATIONS
• BIBLIOGRAPHY
BANKING IN INDIA:
Without a sound and effective banking system in India it cannot have a
healthy economy. The banking system of India should not only be hassle free
but it should be able to meet new challenges posed by the technology and any
other external and internal factors. For the past three decades India's banking
system has several outstanding achievements to its credit. The most striking is
its extensive reach. It is no longer confined to only metropolitans or
cosmopolitans in India. In fact, Indian banking system has reached even to
the remote corners of the country. This is one of the main reasons of India's
growth process.
HISTORY:
The first bank in India, though conservative, was established in 1786. From
1786 till today, the journey of Indian Banking System can be segregated into
three distinct phases. They are as mentioned below:
PHASE I
⇒ Early phase from 1786 to 1969 of Indian Banks
PHASE II
PHASE III
⇒ Indian Financial & Banking Sector Reforms after 1991.
PHASE I:
The General Bank of India was set up in the year 1786. Next came Bank of
Hindustan and Bengal Bank. The East India Company established Bank of
Bengal (1809), Bank of Bombay (1840) and Bank of Madras (1843) as
independent units and called it Presidency Banks. These three banks were
amalgamated in 1920 and Imperial Bank of India was established which
started as private shareholders banks, mostly Europeans shareholders. During
the first phase the growth was very slow and banks also experienced periodic
failures between 1913 and 1948. There were approximately 1100 banks,
mostly small. To streamline the functioning and activities of commercial banks,
the Government of India came up with The Banking Companies Act, 1949
which was later changed to Banking Regulation Act 1949 as per amending Act
of 1965 (Act No. 23 of 1965). Reserve Bank of India was vested with extensive
powers for the supervision of banking in India as the Central Banking
Authority. During those day’s public has lesser confidence in the banks. As an
aftermath deposit mobilization was slow. Abreast of it the savings bank facility
provided by the Postal department was comparatively safer. Moreover, funds
were largely given to the traders.
PHASE II:
Government took major steps in this Indian Banking Sector Reform after
independence. In 1955, it nationalized Imperial Bank of India with extensive
banking facilities on a large scale especially in rural and semi-urban areas.
Second phase of nationalization Indian Banking Sector Reform was carried out
in 1980 with seven more banks. This step brought 80% of the banking
segment in India under Government ownership.
The following are the steps taken by the Government of India to Regulate
Banking Institutions in the Country:
1949: Enactment of Banking Regulation Act.
1955: Nationalization of State Bank of India.
1959: Nationalization of SBI subsidiaries.
1961: Insurance cover extended to deposits.
1969: Nationalization of 14 major banks.
1971: Creation of credit guarantee corporation.
1975: Creation of regional rural banks.
1980: Nationalization of seven banks with deposits over 200 crore.
After the nationalization of banks, the branches of the public sector bank India
raised to approximately 800% in deposits and advances took a huge jump by
11,000%.Banking in the sunshine of Government ownership gave the public
implicit faith and immense confidence about the sustainability of these
institutions.
PHASE III
This phase has introduced many more products and facilities in the banking
sector in its reforms measure. In 1991, under the chairmanship of M
Narasimham, a committee was set up by his name which worked for the
liberalisation of banking practices. The country is flooded with foreign banks
and their ATM stations. Efforts are being put to give a satisfactory service to
customers. Phone banking and net banking is introduced. The entire system
became more convenient and swift. The financial system of India has shown a
great deal of resilience. It is sheltered from any crisis triggered by any
external macroeconomics shock as other East Asian Countries suffered. This is
all due to a flexible exchange rate regime, the foreign reserves are high, the
capital account is not yet fully convertible, and banks and their customers
have limited foreign exchange exposure.
Banks in India:
India has a well developed banking system. Most of the banks in India were
founded by Indian entrepreneurs and visionaries in the pre-independence era
to provide financial assistance to traders, agriculturists and budding Indian
industrialists. The origin of banking in India can be traced back to the last
decades of the 18th century. The General Bank of India and the Bank of
Hindustan, which started in 1786 were the first banks in India. Both the banks
are now defunct. The oldest bank in existence in India at the moment is the
State Bank of India. The State Bank of India came into existence in 1806. At
that time it was known as the Bank of Calcutta. SBI is presently the largest
commercial bank in the country.
The role of central banking in India is looked by the Reserve Bank of India,
which in 1935 formally took over these responsibilities from the then Imperial
Bank of India. Reserve Bank was nationalized in 1947 and was given broader
powers. In 1969, 14 largest commercial banks were nationalized followed by
six next largest in 1980. But with adoption of economic liberalization in 1991,
private banking was again allowed.
Indian banks can be broadly classified into public sector banks (those banks in
which the Government of India holds a stake), private banks (government doe
not have a stake in these banks; they may be publicly listed and traded on
stock exchanges) and foreign banks.
Bank Fixed Deposits
Bank Fixed Deposits are also known as Term Deposits. In a Fixed Deposit
Account, a certain sum of money is deposited in the bank for a specified time
period with a fixed rate of interest. The rate of interest for Bank Fixed Deposits
depends on the maturity period. It is higher in case of longer maturity period.
There is great flexibility in maturity period and it ranges from 15days to 5
years.
Current Account
Current Account is primarily meant for businessmen, firms, companies, public
enterprises etc. that have numerous daily banking transactions. Current
Accounts are cheque operated accounts meant neither for the purpose of
earning interest nor for the purpose of savings but only for convenience of
business hence they are non-interest bearing accounts.
Demat Account
Demat refers to a dematerialised account. Demat account is just like a bank
account where actual money is replaced by shares. Just as a bank account is
required if we want to save money or make cheque payments, we need to
open a demat account in order to buy or sell shares.
Nationalised Banks
Nationalised banks dominate the banking system in India. The history of
nationalised banks in India dates back to mid-20th century, when Imperial
Bank of India was nationalised (under the SBI Act of 1955) and re-christened
as State Bank of India (SBI) in July 1955.
Private Banks in India
Initially all the banks in India were private banks, which were founded in the
pre-independence era to cater to the banking needs of the people. In 1921,
three major banks i.e. Banks of Bengal, Bank of Bombay, and Bank of Madras,
merged to form Imperial Bank of India.
Foreign Banks in India
Foreign banks have brought latest technology and latest banking practices in
India. They have helped made Indian Banking system more competitive and
efficient. Government has come up with a road map for expansion of foreign
banks in India.
The road map has two phases. During the first phase between March 2005 and
March 2009, foreign banks may establish a presence by way of setting up a
wholly owned subsidiary (WOS) or conversion of existing branches into a WOS.
The second phase will commence in April 2009 after a review of the experience
gained after due consultation with all the stake holders in the banking sector.
The review would examine issues concerning extension of national treatment
to WOS, dilution of stake and permitting mergers/acquisitions of any private
sector banks in India by a foreign bank. Major foreign banks in India are:
ABN-AMRO Bank
The history of ABN Amro Bank dates back to the year 1924, when King Williem
– I issued a Royal Decree declaring the establishment of the Nederlandsche
Handel-Maatschappij (Netherlands Trading Society, NTS). The NTS had been
established with an aim to promote the trade between the Netherlands and the
Dutch East Indies.
BNP Paribas
BNP Paribas is one of the oldest banks in the continent of Europe, and the
largest bank in the Eurozone (consortium of countries having adopted Euro as
their primary currency), as reported by The Banker magazine. The bank is
present in 87 countries with a 162,700-strong workforce offering its services
to the bank.
Citibank
Citibank is one of the largest banks in the U.S., and is a part of the financial
services company Citigroup. Citibank had been founded in the year 1812.
Initially its name was City Bank of New York, which was later changed to First
National City Bank of New York.
Deutsche Bank
Deutsche Bank, headquartered at Frankfurt in Germany, ranks among the
global leaders in corporate banking and securities, transaction banking, asset
management, and private wealth management. It is one the world's leading
international financial service providers with roughly EURO 2.2 trillion in assets
and approximately 80,000 employees.
HSBC Ltd
HSBC Bank is a subsidiary of HSBC Holdings plc, a London based banking giant
which, according to the Forbes magazine, is the largest banking group in the
world, and the 6th largest company in the world as of April 2009.
Barclays Bank
Barclays GRCB India is led by Samir Bhatia as its Managing Director. In a short
period of just two and a half years, Barclays GRCB India has placed itself
amongst the most respected foreign banks in the country that is serving more
than 830,000 clients.
Nationalised Banks in India
Nationalised banks dominate the banking system in India. The history of
nationalised banks in India dates back to mid-20th century, when Imperial
Bank of India was nationalised (under the SBI Act of 1955) and re-christened
as State Bank of India (SBI) in July 1955. Then on 19th July 1960, its seven
subsidiaries were also nationalised with deposits over 200 crores. These
subsidiaries of SBI were State Bank of Bikaner and Jaipur (SBBJ), State Bank
of Hyderabad (SBH), State Bank of Indore (SBIR), State Bank of Mysore
(SBM), State Bank of Patiala (SBP), State Bank of Saurashtra (SBS), and State
Bank of Travancore (SBT).
In the year 1980, the second phase of nationalisation of Indian banks took
place, in which 7 more banks were nationalised with deposits over 200 crores.
With this, the Government of India held a control over 91% of the banking
industry in India. After the nationalisation of banks there was a huge jump in
the deposits and advances with the banks. At present, the State Bank of India
is the largest commercial bank of India and is ranked one of the top five banks
worldwide. It serves 90 million customers through a network of 9,000
branches.
List of Public Sector Banks in India is as follows:
• Allahabad Bank
• Andhra Bank
• Bank of Baroda
• Bank of India
• Bank of Maharashtra
• Canara Bank
• Central Bank of India
• Corporation Bank
• Dena Bank
• Indian Bank
• Indian Overseas Bank
• Oriental Bank of Commerce
• Punjab and Sind Bank
• Punjab National Bank
• State Bank of Bikaner & Jaipur
• State Bank of Hyderabad
• State Bank of India (SBI)
• State Bank of Indore
• State Bank of Mysore
• State Bank of Patiala
• State Bank of Saurashtra
• State Bank of Travancore
• Syndicate Bank
• UCO Bank
• Union Bank of India
• United Bank of India
• Vijaya Bank
• IDBI Bank
Private Banks in India
Initially all the banks in India were private banks, which were founded in the
pre-independence era to cater to the banking needs of the people. In 1921,
three major banks i.e. Banks of Bengal, Bank of Bombay, and Bank of Madras,
merged to form Imperial Bank of India. In 1935, the Reserve Bank of India
(RBI) was established and it took over the central banking responsibilities from
the Imperial Bank of India, transferring commercial banking functions
completely to IBI. In 1955, after the declaration of first-five year plan,
Imperial Bank of India was subsequently transformed into State Bank of India
(SBI).
Bank of Rajasthan
A leading private sector bank, the Bank of Rajasthan was founded on the
auspicious day of Akshya Tritiya on May 8, 1943, at Udaipur. Shri Rai Bahadur
P.C. Chatterji, the then finance minister of the erstwhile Mewar Government,
extensively contributed towards the establishment of the Bank.
Dhanalakshmi Bank
The foundation of Dhanalakshmi Bank Limited was laid down on 14th
November 1927, in the Thrissur district of Kerala. A group of innovative
entrepreneurs had started the bank with a capital of Rs.11,000 and only 7
employees.
Federal Bank
Federal Bank Limited was founded as Travancore Federal Bank Limited in the
year 1931, with an authorized capital of Rs. 5000. It was established at
Nedumpuram, a place near Tiruvalla, in Central Travancore (a princely state
later merged into Kerala), under Travancore Company's Act.
HDFC Bank
Housing Development Finance Corporation Limited, more popularly known as
HDFC Bank Ltd, was established in the year 1994, as a part of the
liberalization of the Indian Banking Industry by Reserve Bank of India (RBI). It
was one of the first banks to receive an 'in principle' approval from RBI, for
setting up a bank in the private sector.
ICICI Bank
ICICI Bank started as a wholly owned subsidiary of ICICI Limited, an Indian
financial institution, in 1994. Four years later, when the company offered ICICI
Bank's shares to the public, ICICI's shareholding was reduced to 46%. In the
year 2000, ICICI Bank offered made an equity offering in the form of ADRs on
the New York Stock Exchange (NYSE)
Karnataka Bank
Karnataka Bank Limited is a leading private sector bank in India. It was
incorporated on 18th February 1924 at Mangalore, a town located in the
Kannada district of Karnataka. The bank emerged as a major player during the
freedom movement of 20th Century India.
UTI Bank
Axis Bank was formed as UTI when it was incorporated in 1994 when
Government of India allowed private players in the banking sector. The bank
was sponsored together by the administrator of the specified undertaking of
the Unit Trust of India, Life Insurance Corporation of India (LIC) and General
Insurance Corporation ltd.
YES Bank
Yes Bank is one of the top most private Indian banks. Awarded by the only
Greenfield license award by RBI in last 14 years, this bank is established and
run by Rana Kapoor and Ashok Kapur with the financial support of Rabobank
Nederland, the world's single AAA rated private Bank.
The commercial banking structure
The commercial banking structure in India consists of:
Scheduled Banks in India constitute those banks which have been included in
the Second Schedule of Reserve Bank of India(RBI) Act, 1934. RBI in turn
includes only those banks in this schedule which satisfy the criteria laid down
vide section 42 (6) (a) of the Act.
As on 30th June, 1999, there were 300 scheduled banks in India having a total
network of 64,918 branches.The scheduled commercial banks in India
comprise of State bank of India and its associates (8), nationalised banks (19),
foreign banks (45), private sector banks (32), co-operative banks and regional
rural banks.
"Scheduled banks in India" means the State Bank of India constituted under
the State Bank of India Act, 1955 (23 of 1955), a subsidiary bank as defined in
the State Bank of India (Subsidiary Banks) Act, 1959 (38 of 1959), a
corresponding new bank constituted under section 3 of the Banking Companies
(Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970), or under
section 3 of the Banking Companies (Acquisition and Transfer of Undertakings)
Act, 1980 (40 of 1980), or any other bank being a bank included in the Second
Schedule to the Reserve Bank of India Act, 1934 (2 of 1934), but does not
include a co-operative bank".
With a change in the corporate structure and the budding competition in the
Indian Banking industry, the management of both ICICI and ICICI Bank were
of the opinion that a merger between the two entities would prove to be an
essential step. It was in 2001 that the Boards of Directors of ICICI and ICICI
Bank sanctioned the amalgamation of ICICI and two of its wholly-owned retail
finance subsidiaries, ICICI Personal Financial Services Limited and ICICI
Capital Services Limited, with ICICI Bank. In the following year, the merger
was approved by its shareholders, the High Court of Gujarat at Ahmedabad as
well as the High Court of Judicature at Mumbai and the Reserve Bank of India.
Present Scenario
ICICI Bank has its equity shares listed in India on Bombay Stock Exchange
and the National Stock Exchange of India Limited. Overseas, its American
Depositary Receipts (ADRs) are listed on the New York Stock Exchange
(NYSE). As of December 31, 2008, ICICI is India's second-largest bank,
boasting an asset value of Rs. 3,744.10 billion and profit after tax Rs. 30.14
billion, for the nine months, that ended on December 31, 2008.
Branches & ATMs
ICICI Bank has a wide network both in Indian and abroad. In India alone, the
bank has 1,420 branches and about 4,644 ATMs. Talking about foreign
countries, ICICI Bank has made its presence felt in 18 countries - United
States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai
International Finance Centre and representative offices in United Arab
Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia.
The Bank proudly holds its subsidiaries in the United Kingdom, Russia and
Canada out of which, the UK subsidiary has established branches in Belgium
and Germany.
Personal Banking
• Deposits
• Loans
• Cards
• Investments
• Insurance
• Demat Services
• Wealth Management
NRI Banking
• Money Transfer
• Bank Accounts
• Investments
• Property Solutions
• Insurance
• Loans
Business Banking
Head Office
ICICI Bank
9th Floor, South Towers
ICICI Towers
Bandra Kurla Complex
Bandra (E)
Mumbai
Phone: 91-022-653 7914
Website: www.icicibank.com
Corporate Profile of ICICI BANK:
ICICI Bank is India's second-largest bank with total assets of Rs. 3,562.28
billion (US$ 77 billion) at December 31, 2009 and profit after tax Rs. 30.19
billion (US$ 648.8 million) for the nine months ended December 31, 2009. The
Bank has a network of 1,723 branches and about 4,883 ATMs in India and
presence in 18 countries. ICICI Bank offers a wide range of banking products
and financial services to corporate and retail customers through a variety of
delivery channels and through its specialised subsidiaries and affiliates in the
areas of investment banking, life and non-life insurance, venture capital and
asset management. The Bank currently has subsidiaries in the United
Kingdom, Russia and Canada, branches in United States, Singapore, Bahrain,
Hong Kong, Sri Lanka, Qatar and Dubai International Finance Centre and
representative offices in United Arab Emirates, China, South Africa,
Bangladesh, Thailand, Malaysia and Indonesia. Our UK subsidiary has
established branches in Belgium and Germany.
ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and
the National Stock Exchange of India Limited and its American Depositary
Receipts (ADRs) are listed on the New York Stock Exchange (NYSE).
Business Continuity Management (BCM)
ICICI Bank (the Bank) is committed to safeguard the interests of its
customers, employees and stakeholders in the event of a disaster or
significant disruption that may affect its operations and premises.
The Bank has developed a plan for Business Continuity Management. The plan
is designed to facilitate the continuity of the critical business processes in the
event of defined disaster scenarios. The scenarios address city wide (wide-
area) disruptions too.
The Bank has adopted a three pronged approach while developing the BCM as
given below:
● Group specific plans for continuity of business and operations
● Disaster recovery plans for recovery of information technology
systems, data backup and networks
● Emergency response procedures addressing the risks of injuries to
customers /employees and damage to the Bank's assets
The plan is in line with the guidelines issued by the Reserve Bank of India
(RBI) in this regard and is subject to regular review.
Management of ICICI Bank
Name Designation
K V Kamath Non Executive Chairman
L N Mittal Director
Anupam Puri Director
P M Sinha Director
V Prem Watsa Director
Sonjoy Chatterjee Executive Director
M S Ramachandran Non Executive Director
K Ramkumar Executive Director
V Sridar Non Executive Director
Sridar lyengar Director
Narendra Murkumbi Director
M K Sharma Director
Marti G Subrahmanyam Director
Chanda D Kochhar Managing Director & CEO
Sandeep Bakhshi Deputy Managing Director
N S Kannan Executive Director & CFO
Homi R Khusrokhan Non Executive Director
BOARD COMMITTEE
Board Governance Remuneration & Nomination
Audit Committee
Committee
1994
1996
• Sicom Ltd. has entered into an agreement with ICICI Bank and
Dresdner Bank for providing a counter guarantee against letters of
credits (LCs) opened by its clients.
• The merger of SCICI with ICICI effective from April 1, the bank
has become a wholly-owned subsidiary of ICICI.
1998
1999
2000
• ICICI Bank became the first Indian bank to list on the New York
Stock Exchange with its 5-million American depository shares issue
generating a demand book 13 times its size at 2 billion.
• The Finance portal India Infoline has tied up with ICICI Bank
and HDFC Bank for banking back-ends.
• Tata Teleservices Ltd. has tied up with ICICI Bank and Global
Trust Bank to enable its customers to use Internet banking facilities for
the payment of telephone bills.
• ICICI Bank will provide credit for online transactions over chem-
B.com, the online trading site for chemicals and chemical products,
launched by Chembazaar Online Pvt. Ltd.
• Spice Cell has tied up with Citibank N A, HDFC Bank and ICICI
Bank for mobile bill settlements.
• ICICI Bank and UAE Exchange Centre have entered into a wire
transfer arrangement, for electronic and telex transfer of funds.
• The swap ratio for the merger of Bank of Madura (BoM) with
ICICI Bank has been pegged at 1:2 i.e., two shares of ICICI Bank for
every one share of BoM.
• ICICI Bank launched its debit card under the brand name
ICICIN-cash.
2001
• In the run-up to the reverse merger with ICICI Bank, ICICI has
slashed its management grades to have an identical administrative
structure like that of the banking subsidiary. ICICI had changed its
management structure by combining two levels and cutting down the
management structure to eight levels.
• ICICI Bank plans to tap the debt market to raise Rs 350 crore
for meeting Tier-II capital requirements.
2002
• AirTel, in tie-up with the ICICI Bank, declares the launch of re-
charge facility for the AirTel Magic pre-paid cards on ICICI Bank's ATM
network in the twin cities of Hyderabad & Secunderbad in Andhra
Pradesh.
2003
2005
• ICICI inks pact with Godrej Sara Lee for channel financing
2006
• ICICI Bank Ltd has informed that Reserve Bank of India has
approved the Scheme of Amalgamation of The Sangli Bank Ltd with the
Bank. The Scheme of Amalgamation shall come into effect from April 19,
2007.
2008
• ICICI Bank Ltd has informed that the Government of India has
nominated Shri. Arun Ramanathan, on the Board of the Bank effective
January 18, 2008 in place of Shri. Vinod Rai who has resigned effective
January 06, 2008.
• ICICI Bank Ltd has informed that the Government of India has
nominated Shri. Arun Ramanathan, on the Board of the Bank effective
January 18, 2008 in place of Shri. Vinod Rai who has resigned effective
January 06, 2008.
2009
• ICICI Bank Limited acting through its Hong Kong Branch (ICICI
Bank) signed a loan agreement with the Export-Import Bank of China
(China Exim) for USD 98 million under the Two- step Buyer Credit
(Export Credit) arrangement. ICICI Bank is the first Indian Bank to have
entered into this arrangement with China Exim.
2010
We were incorporated in 1994 as a part of the ICICI group. Our initial equity
capital was contributed 75.0% by ICICI and 25.0% by SCICI Limited, a
diversified finance and shipping finance lender of which ICICI owned 19.9% at
December 1996. Pursuant to the merger of SCICI into ICICI, we became a
wholly owned subsidiary of ICICI.
Change of name
Our name was changed from ICICI Banking Corporation Limited to ICICI Bank
Limited on September 10, 1999. The change of name was effected on account
of our being widely known by the name ICICI Bank.
Bank of Madura was merged with us effective March 10, 2001. The share
Exchange ratio fixed for the transaction was two of our equity shares of Rs. 10
each for every equity share of Bank of Madura of Rs. 10 each.
Amalgamation of ICICI
Regulatory systems,
Economic growth,
Technological advancement,
Risk assessment systems
Credit quality.
marketing approach
product innovation
risk management systems
Financial Advisory
Rigorously designed back-office processes contribute to the strength
of the Bank’s retail lending strategy
Wealth Advisory Services
Company Background - ICICI Bank
Regd. Office
Address "Landmark", Race Course Circle
District Vadodra
State Gujarat
Pin Code 390007
Tel. No. 0265-2339923
Fax No. 0265-2339926
Email : investor@icicibank.com Internet : http://www.icicibank.com
Registrars
Name 3i Infotech Ltd
Address Tower, No.5, 3rd to 6th Floor, International Infotech Park, New Mumbai - 400703, Maharashtra
Tel. No. : Fax No. :
BIBLIOGRAPHY:
1. www.icicibank.com
2. www.google.co.in
3. www.finance.india.mart.com
4. www.banknetindia.com
5. www.rbi.org
6. www.moneycontrol.com