M.B.A Project Work Report On Analysis of Financial Services & Transaction Related to Banking Undertaken in ICICI BANK LTD.

(BIKANER) For The Partial Fulfillment of MBA Degree

Submitted By: RAJU HEDA Enrollment No. CA310MBA71301 Session July 2010-12 Institute : Amar Mangal Institute of Professional Studies, Jodhpur

Guided by: Mr. Atul Vyas (Asst. Professor) Amar Mangal Institute of Professional Studies

Submitted to: Director CDE & Collaborative Programs PRIST University, THANJAVUR (T.N.) INDIA

DECLARATION

I am RAJU HEDA studying in AMAR MANGAL INSTITUTE OF PROFESSIONAL STUDIES hereby declare that I have done a project on ANALYSIS OF FINANCIAL SERVICES & TRANSACTION RELATED TO BANKING. As required by the university rules, I state that the work presented in this thesis is original in nature and to the best my knowledge, has not been submitted so far to any other university. Whenever references have been made to the work of others, it is clearly indicated in the sources of information in references.

RAJU HEDA Place-JODHPUR Date-AUGUST 2011 Enrollment NO.CA310MBA71301 Session 2010-12

ACKNOWLEDGMENT

The satisfaction Euphoria that accompanies the successful completion of any work would be incomplete unless we mention the name of the person, who made it possible, who constant guidance and encouragement served as a beckon of light and crowned our efforts with success. I consider it a privilege to express through the pages of this report, a few words of gratitude and respect to those who guided and inspired in the completion of this project.

I am deeply indebted to Mr. AMIT LAHOTI (BRANCH MANAGER) for giving me the opportunity to undergo my project in their esteemed organization and they give me timely suggestions & valuable guidance. They constantly encouraged me and showed the right path from day first till the completion of my project.

I had visited almost all markets of Bikaner and collected information of the project. I have also done promotional activities under the constant guidance of my project guide.

In the last but not the least, my grateful appreciation is also extended to Mr. Atul Vyas Asstt. Professer of AMAR MANGAL INSTITUTE OF PROFESSIONAL STADIES, they have the best guide for my this project.

However, I accept the sole responsibility for any possible errors of omission and would be extremely grateful to the readers of this project if they bring such mistakes to my notice.

EXECUTIVE SUMMARY

The banking sector in India has become very much competitive in last few years with the increasing growth of private and public sector banks. Day by day the competition is most stringent and crucial. I under took project in ICICI bank limited Bikaner for profiling to understanding the banking operation and marketing its product. ICICI bank was established in and is working with larger assets side in private sector banks. The quality of service is best among competitor.

I concluded the survey to get the information regarding the new potential salary accounts and saving accounts relations and satisfactions level of existing salary accounts and saving accounts for cross sale of other products. The satisfaction amount the existing salary accounts holders and the saving account holders of ICICI bank were revealed most of the aspects were at the satisfactory level. A majority was satisfied with the facility provided, services, products, working hours, communication process and technology. Regarding some factor, customer wants some modification in the provided facilities so they can give suggestions to make them according to their expectations. I would help the bank to identify the satisfaction level of existing relations and try to cross sale the other products and services.

INDEX
S.N. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. TABLE OF CONTENT Introduction of Industry Introduction of Banks Various Product & Services Offered By Bank History of ICICI Bank Introduction of ICICI Bank Board of Directors & Committees Introduction of Orgnization Group Companies of ICICI Corporate Social Responsibilities Research Methodology Credit Rating Risk Management SWOT Analysis Analysis & Interpretation Conclusion Suggestion Bibliography Annexure PAGE NO. 1 - 17 18 - 30 31 - 38 39 - 40 41 - 80 81 - 85 86 - 94 95 - 103 104 - 109 110 - 118 119 - 119 120 - 122 123 - 128 129 - 134 135 - 135 136 - 137 138 - 138 139 - 139

LIST OF TABLES S.N.

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12.

PARTICULARS
Functions of Banks Various Channels of Services Types of Deposit Types of credit cards Types of Loan Types of investment Director Profiles International Business Group of ICICI Management Team SWOT Analysis Framework SWOT/TOWS Matrix

PAGE NO.
19 31 50 56 60 69 82 94 95 124 127 129

1. INTRODUCTION OF THE INDUSTRY

Banking in a traditional sense is the business of accepting deposits of money from public for the purpose of lending and investments. These deposits can have a distinct feature of being withdrawal by cheques, which no other financial institution can offer. In addition, banks also offer various other financial services, which includes Issuing Demand Draft and Travelers Cheques Credit Card Collection of Cheques, Bills of Exchange Safe Deposit Lockers Issuing Letters of Credit and Letters of Guarantee Sale and Purchases of Foreign Exchange Custodial Services Investment and Insurance services

The business of banking is highly regulated since banks deal with money offered to them by the public and ensuring the safety of this public money is one of the prime responsibilities of any bank. That is why banks are expected to be prudent in their lending and investment activities. Every bank has Compliance department, which is responsible to ensure that all the services offered by the banks and the processes followed are in compliance with the local regulation and the banks corporate policies. Banking Regulation Act, 1949 Foreign Exchange Management Act, 1999 Indian Contract Act, 1872 Negotiable Instrument Act, 1881

Banks lend money either for productive purposes to individuals, firm corporate etc. or for buying house property, cars and other durable and for investment purposes to individuals and others. However banks do not finance any speculative activity. Lending is risk taking; having prudent norms for lending should cover the risk. The depositors of banks are also assured of their money by deploying some percentage of deposits in statutory reserve like SLR and CRR. In 2008, when the global banking industry was being shaken by the tremors of the unfolding financial crisis, only one bank in India felt the aftershocks, and this, only because one of its overseas subsidiaries had made an opportunistic bet on debt issued by the failed investment bank Lehman Brothers. While the market valuations of all the leading banks in India slipped as equity prices tumbled, their businesses were not affected and their balance sheets remained healthy. The Indian banking industry is also well capitalized and capital ratios are above the global average. The average tier-1 capital adequacy ratio of the Indian banking industry is above 10%, when compared to the Basel III norm of 8.5% including the contingency buffer. The average total capital of banks in India stood at 14.5% as of March 31, 2010, compared to the Basel III requirement of 10.5%. The banking sector reforms undertaken in India from 1992 onwards were basically aimed at ensuring the safety and soundness of financial institutions and at the same time at making the banking system strong, efficient, functionally diverse and competitive. The reforms included measures for arresting the decline in productivity, efficiency and profitability of the banking sector. Furthermore, it was recognized that the Indian banking system should be in tune with international standards of capital adequacy, prudential regulations, and accounting and disclosure standards. Financial soundness and consistent supervisory practices, as evident in our level of compliance with the Basel Committee. Core Principles for Effective Banking Supervision have made our banking system resilient to global shocks.

India has not faced any major economic/financial crises, though in 1990-91, there was some pressure on the external sector with the current account deficit and external debt servicing reaching large proportions. However, due to prudent macroeconomic policies, it was possible to return the country to a sustainable growth path. As well as the long history of regulation and supervision, Indian banks have limited exposure to sensitive sectors such as real estate, equity, etc, strict control over off-balance sheet activities, larger holdings of government bonds (which helps limit credit risk), relatively welldiversified credit portfolios, statutory restrictions on connected lending, adequate control over currency and maturity mismatches, etc, which has insulated them from the adverse impact of financial crisis and contagion. Banks in india have played a significant role in the development of the Indian economy. However, with the structural reforms initiated in the real economy from the early 1990s, it was imperative that a vibrant and competitive financial system should be put in place to sustain the ongoing process of reforms in the real sector. The financial sector reforms have provided the necessary platform for the banking sector to operate on the basis of operational flexibility and functional autonomy, thereby enhancing efficiency, productivity and profitability. The reforms also brought about structural changes in the financial sector and succeeded in easing external constraints on its operation, introducing transparency in reporting procedures, restructuring and recapitalizing banks and enhancing the competitive element in the market through the entry of new banks. The ongoing revolution in information and communication technology has. However, largely by passed the Indian banking system given the low initial level of automation. The competitive environment created by financial sector reforms has nonetheless compelled the banks to gradually adopt modern technology, albeit to a limited extent, to maintain their market share. Banks continue to be the major financial intermediaries with a share of 64% of total financial assets. However, non-bank financial companies and development finance institutions are also emerging as alternative sources of funding. In India, foreign banks account for only around 8% of the total assets of the banking system. Further, domestic households are not allowed to place deposits abroad. Similarly, conditions for accessing overseas capital markets by domestic corporate have been stringent, in terms of size, maturity, pricing, etc. The
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impact of the entry of foreign banks on domestic banks is likely to depend on various factors such as the structure, strength and competitiveness of domestic banks, the share of foreign banks, and the regulatory/supervisory framework. While the entry of foreign banks could definitely improve the competitive environment, they are not likely to weaken domestic banks. With better technology and expertise in offering specialised banking products such as derivatives, advisory services, trade finance, etc, the entry of foreign banks can enhance healthy competition and has a positive spillover effect on the domestic banks. The domestic banks would be under peer pressure to improve operational efficiency. It needs, however, to be recognised that the banking system in India is quite competitive with the presence of public, private and foreign banks. Thus, the major forces for change in the Indian context have been the following: - Consistent and strong regulatory and supervisory framework; - Structural reforms in the real and financial sectors; - Competition from foreign banks and new-generation private sector banks. In India the banks are being segregated in different groups. Each group has their own benefits and limitations in operating in India. Each has their own dedicated target market. Few of them only work in rural sector while others in both rural as well as urban. Many even are only catering in cities. Some are of Indian origin and some are foreign players. Among the Public Sector Banks in India, United Bank of India is one of the 14 major banks which were nationalised on July 19, 1969. Its predecessor, in the Public Sector Banks, the United Bank of India Ltd., was formed in 1950 with the amalgamation of four banks viz. Comilla Banking Corporation Ltd. (1914), Bengal Central Bank Ltd. (1918), Comilla Union Bank Ltd. (1922). Oriental Bank of Commerce (OBC), a Government of India Undertaking offers Domestic, NRI and Commercial banking services. OBC is implementing a GRAMEEN PROJECT in Dehradun District (UP) and Hanumangarh District (Rajasthan) disbursing small loans. This Public Sector Bank India has implemented 14 point action plan for strengthening of credit delivery to women and has designated 5 branches as specialized branches for women entrepreneurs. Private banking in India was practiced since the beginning of banking system in India. The first private bank in India to be set up in Private Sector Banks in India was IndusInd Bank. It is one of the fastest growing Bank Private Sector
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Banks in India. IDBI ranks the tenths largest development bank in the world as Private Banks in India and has promoted a world class institution in India. The first Private Bank in India to receive an in principle approval from the Reserve Bank of India was Housing Development Finance Corporation Limited, to set up a bank in the private sector banks in India as part of the RBI's liberalisation of the Indian Banking Industry. It was incorporated in August 1994 as HDFC Bank Limited with registered office in Mumbai and commenced operations as Scheduled Commercial Bank in January 1995. The Co operative banks in India started functioning almost 100 years ago. The Cooperative bank is an important constituent of the Indian Financial System, judging by the role assigned to co operative, the expectations the co operative is supposed to fulfill, their number, and the number of offices the cooperative bank operate. Though the co operative movement originated in the West, but the importance of such banks have assumed in India is rarely paralleled anywhere else in the world. The cooperative bank in India plays an important role even today in rural financing. The business of cooperative bank in the urban areas also has increased phenomenally in recent years due to the sharp increase in the number of primary co-operative banks. Cooperative Banks in India are registered under the Co-operative Societies Act. The cooperative bank is also regulated by the RBI. They are governed by the Banking Regulations Act 1949 and Banking Laws (Co-operative Societies) Act, 1965. Rural banking in India started since the establishment of banking sector in India. Rural Banks in those days mainly focused upon the agro sector. Regional rural banks in India penetrated every corner of the country and extended a helping hand in the growth process of the country. SBI has 30 Regional Rural Banks in India known as RRBs. The rural bank of SBI is spread in 13 states extending from Kashmir to Karnataka and Himachal Pradesh to North East. The total number of SBIs Regional Rural Banks in India branches is 2349 (16%). Till date in rural banking in India, there are 14,475 rural banks in the country of which 2126 (91%) are located in remote rural areas. The central bank of the country is the Reserve Bank of India (RBI). It was established in April 1935 with a share capital of Rs. 5 crores on the basis of the recommendations of the Hilton Young Commission. The share capital was divided into shares of Rs. 100 each fully paid which was entirely owned by
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private shareholders in the begining. The Government held shares of nominal value of Rs. 2,20,000. Reserve Bank of India was nationalised in the year 1949. The general superintendence and direction of the Bank is entrusted to Central Board of Directors of 20 members, the Governor and four Deputy Governors, one Government official from the Ministry of Finance, ten nominated Directors by the Government to give representation to important elements in the economic life of the country, and four nominated Directors by the Central Government to represent the four local Boards with the headquarters at Mumbai, Kolkata, Chennai and New Delhi. Local Boards consist of five members each Central Government appointed for a term of four years to represent territorial and economic interests and the interests of co-operative and indigenous banks. The Reserve Bank of India Act, 1934 was commenced on April 1, 1935. The Act, 1934 (II of 1934) provides the statutory basis of the functioning of the Bank.

The Bank was constituted for the need of following:

To regulate the issue of banknotes

To maintain reserves with a view to securing monetary stability and

To operate the credit and currency system of the country to its advantage.

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Functions of Reserve Bank of India The Reserve Bank of India Act of 1934 entrust all the important functions of a central bank the Reserve Bank of India. Bank of Issue. Under Section 22 of the Reserve Bank of India Act, the Bank has the sole right to issue bank notes of all denominations. The distribution of one rupee notes and coins and small coins all over the country is undertaken by the Reserve Bank as agent of the Government. The Reserve Bank has a separate Issue Department which is entrusted with the issue of currency notes. The assets and liabilities of the Issue Department are kept separate from those of the Banking Department. Originally, the assets of the Issue Department were to consist of not less than two-fifths of gold coin, gold bullion or sterling securities provided the amount of gold was not less than Rs. 40 crores in value. The remaining three-fifths of the assets might be held in rupee coins, Government of India rupee securities, eligible bills of exchange and promissory notes payable in India. Due to the exigencies of the Second World War and the post-was period, these provisions were considerably modified. Since 1957, the Reserve Bank of India is required to maintain gold and foreign exchange reserves of Ra. 200 crores, of which at least Rs. 115 crores should be in gold. The system as it exists today is known as the minimum reserve system. Banker to Government: The second important function of the Reserve Bank of India is to act as Government banker, agent and adviser. The Reserve Bank is agent of Central Government and of all State Governments in India excepting that of Jammu and Kashmir. The Reserve Bank has the obligation to transact Government business, via. to keep the cash balances as deposits free of interest, to receive and to make payments on behalf of the Government and to carry out their exchange remittances and other banking operations. The Reserve Bank of India helps the Government - both the Union and the States to float new loans and to manage public debt. The Bank makes ways and means advances to the Governments for 90 days. It makes loans and advances to the States and local authorities. It acts as adviser to the Government on all monetary and banking matters. The Reserve Bank of India acts as the bankers' bank. According to the provisions of the Banking Companies Act of 1949, every scheduled bank was required to maintain with the Reserve Bank a cash balance equivalent to 5% of
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its demand liabilities and 2 per cent of its time liabilities in India. By an amendment of 1962, the distinction between demand and time liabilities was abolished and banks have been asked to keep cash reserves equal to 3 per cent of their aggregate deposit liabilities. The minimum cash requirements can be changed by the Reserve Bank of India. The scheduled banks can borrow from the Reserve Bank of India on the basis of eligible securities or get financial accommodation in times of need or stringency by rediscounting bills of exchange. Since commercial banks can always expect the Reserve Bank of India to come to their help in times of banking crisis the Reserve Bank becomes not only the banker's bank but also the lender of the last resort. Controller of Credit The Reserve Bank of India is the controller of credit i.e. it has the power to influence the volume of credit created by banks in India. It can do so through changing the Bank rate or through open market operations. According to the Banking Regulation Act of 1949, the Reserve Bank of India can ask any particular bank or the whole banking system not to lend to particular groups or persons on the basis of certain types of securities. Since 1956, selective controls of credit are increasingly being used by the Reserve Bank. The Reserve Bank of India is armed with many more powers to control the Indian money market. Every bank has to get a licence from the Reserve Bank of India to do banking business within India, the licence can be cancelled by the Reserve Bank of certain stipulated conditions are not fulfilled. Every bank will have to get the permission of the Reserve Bank before it can open a new branch. Each scheduled bank must send a weekly return to the Reserve Bank showing, in detail, its assets and liabilities. This power of the Bank to call for information is also intended to give it effective control of the credit system. The Reserve Bank has also the power to inspect the accounts of any commercial bank. As supreme banking authority in the country, the Reserve Bank of India, therefore, has the following powers: (a) It holds the cash reserves of all the scheduled banks.
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(b) It controls the credit operations of banks through quantitative and qualitative controls. (c) It controls the banking system through the system of licensing, inspection and calling for information. (d) It acts as the lender of the last resort by providing rediscount facilities to scheduled banks. Custodian of Foreign Reserves The Reserve Bank of India has the responsibility to maintain the official rate of exchange. According to the Reserve Bank of India Act of 1934, the Bank was required to buy and sell at fixed rates any amount of sterling in lots of not less than Rs. 10,000. The rate of exchange fixed was Re. 1 = sh. 6d. Since 1935 the Bank was able to maintain the exchange rate fixed at lsh.6d. though there were periods of extreme pressure in favour of or against the rupee. After India became a member of the International Monetary Fund in 1946, the Reserve Bank has the responsibility of maintaining fixed exchange rates with all other member countries of the I.M.F. Besides maintaining the rate of exchange of the rupee, the Reserve Bank has to act as the custodian of India's reserve of international currencies. The vast sterling balances were acquired and managed by the Bank. Further, the RBI has the responsibility of administering the exchange controls of the country.

Supervisory functions In addition to its traditional central banking functions, the Reserve bank has certain non-monetary functions of the nature of supervision of banks and promotion of sound banking in India. The Reserve Bank Act, 1934, and the Banking Regulation Act, 1949 have given the RBI wide powers of supervision and control over commercial and co-operative banks, relating to licensing and establishments, branch expansion, liquidity of their assets, management and
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methods of working, amalgamation, reconstruction, and liquidation. The RBI is authorised to carry out periodical inspections of the banks and to call for returns and necessary information from them. The nationalisation of 14 major Indian scheduled banks in July 1969 has imposed new responsibilities on the RBI for directing the growth of banking and credit policies towards more rapid development of the economy and realisation of certain desired social objectives. The supervisory functions of the RBI have helped a great deal in improving the standard of banking in India to develop on sound lines and to improve the methods of their operation.

Promotional functions With economic growth assuming a new urgency since Independence, the range of the Reserve Bank's functions has steadily widened. The Bank now performs a variety of developmental and promotional functions, which, at one time, were regarded as outside the normal scope of central banking. The Reserve Bank was asked to promote banking habit, extend banking facilities to rural and semiurban areas, and establish and promote new specialised financing agencies. Accordingly, the Reserve Bank has helped in the setting up of the IFCI and the SFC; it set up the Deposit Insurance Corporation in 1962, the Unit Trust of India in 1964, the Industrial Development Bank of India also in 1964, the Agricultural Refinance Corporation of India in 1963 and the Industrial Reconstruction Corporation of India in 1972. These institutions were set up directly or indirectly by the Reserve Bank to promote saving habit and to mobilise savings, and to provide industrial finance as well as agricultural finance. As far back as 1935, the Reserve Bank of India set up the Agricultural Credit Department to provide agricultural credit. But only since 1951 the Bank's role in this field has become extremely important. The Bank has developed the co-operative credit movement to encourage saving, to eliminate moneylenders from the villages and to route its short term credit to agriculture. The RBI has set up the Agricultural Refinance and Development Corporation to provide long-term finance to farmers.

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Classification of RBIs functions The monetary functions also known as the central banking functions of the RBI are related to control and regulation of money and credit, i.e., issue of currency, control of bank credit, control of foreign exchange operations, banker to the Government and to the money market. Monetary functions of the RBI are significant as they control and regulate the volume of money and credit in the country. Equally important, however, are the non-monetary functions of the RBI in the context of India's economic backwardness. The supervisory function of the RBI may be regarded as a non-monetary function (though many consider this a monetary function). The promotion of sound banking in India is an important goal of the RBI, the RBI has been given wide and drastic powers, under the Banking Regulation Act of 1949 - these powers relate to licencing of banks, branch expansion, liquidity of their assets, management and methods of working, inspection, amalgamation, reconstruction and liquidation. Under the RBI's supervision and inspection, the working of banks has greatly improved. Commercial banks have developed into financially and operationally sound and viable units. The RBI's powers of supervision have now been extended to nonbanking financial intermediaries. Since independence, particularly after its nationalisation 1949, the RBI has followed the promotional functions vigorously and has been responsible for strong financial support to industrial and agricultural

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BANKING REGULATIONS ACT 1949 This act was passed as the banking regulation Companies Act1949.

Banking means accepting for the purpose of lending or investment of deposits of money from public repayable on demand or otherwise and withdrawal by cheque, drafts order or otherwise (5 (i) (b))

Banking company means any company which transacts the business of banking (5(i)(c)

Transact banking business in India (5 (i) (e).

Demand liabilities are the liabilities which must be met on demand and time liabilities means liabilities which are not demand liabilities (5(i)(f)

Secured loan or advances means a loan or advance made on the security of asset the market value of which is not at any time less than the amount of such loan or advances and unsecured loan or advances means a loan or advance not secured (5(i)(h).

Defines business a banking company may be engaged in like borrowing, lockers, letter of credit, traveller cheques, mortgages etc (6(1). States that no company shall engage in any form of business other than those referred in Section 6(1) (6(2).

For banking companies carrying on banking business in India to use at least one word bank, banking, banking company in its name (7).

Restrictions on business of certain kinds such as trading of goods etc. (8)

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Prohibits banks from holding any immovable property howsoever acquired except as acquired for its own use for a period exceeding 7 years from acquisition of the property. RBI may extend this period by five years (9)

Prohibitions on employments like Chairman, Directors etc (10)

Paid up capital, reserves and rules relating to these (11 & 12)

Banks not to pay any commission, brokerage, discount etc. more than 2.5% of paid up value of one share (13)

Prohibits a banking company from creating a charge upon any unpaid capital of the company. (14) Section 14(A) prohibits a banking company from creating a floating charge on the undertaking or any property of the company without the RBI permission.

Prohibits payment of dividend by any bank until all of its capitalised expenses have been completely written off (15)

To create reserve fund and 20% of the profits should be transferred to this fund before any dividend is declared (17 (1))

Cash reserve - Non-scheduled banks to maintain 3% of the demand and time liabilities by way of cash reserves with itself or by way of balance in a current account with RBI (18)
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Permits banks to form subsidiary company for certain purposes (19)

No banking company shall hold shares in any company, whether as pledgee, mortgagee or absolute owners of any amount exceeding 30% of its own paid up share capital + reserves or 30% of the paid up share capital of that company whichever is less. (19(2).

Restrictions on banks to grant loan to person interested in management of the bank (20)

Power to Reserve Bank to issue directive to banks to determine policy for advances (21)

Every bank to maintain a percentage of its demand and time liabilities by way of cash, gold, unencumbered securities 25%-40% as on last Friday of 2nd preceding fortnight (24).

Return of unclaimed deposits (10 years and above) (26) Every bank has to publish its balance sheet as on March 31st (29).

Balance sheet is to be got audited from qualified auditors (30 (i))

Publish balance sheet and auditors report within 3 months from the end of period to which they refer. RBI may extend the period by further three month (31)

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Prevents banks from producing any confidential information to any authority under Indl Disputes Act. (34A)

RBI authorised to undertake inspection of banks (35).

Amendment carried in the Act during 1983 empowers Central Govt to frame rules specifying the period for which a bank shall preserve its books (45-y), nomination facilities (45ZA to ZF) and return a paid instrument to a customer by keeping a true copy (45Z).

Certain returns are also required to be sent to RBI by banks such as monthly return of liquid assets and liabilities (24-3), quarterly return of assets and liabilities in India (25), return of unclaimed deposits i.e. 10 years and above (26) and monthly return of assets and liabilities (27-1).

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BANKING INDUSTRY IN INDIA

Banking in India has its origin as early as the Vedic period. It is believed that the transition from money lending to banking must have occurred even before Manu. The great Hindu Jurist, who has devoted a section of his work to deposits and advances and lay down rules relating to rate of interest. During the Mogul period, the indigenous banker played a very important role in lending money and financing foreign trade and commerce. During the days of the East India Company it was the turn of the agency houses to carry on the banking business. The General Bank of India was the first joint Stock Bank to be established in the year 1786. The others, which followed, were the Bank of Hindustan and Bengal Bank. The bank of Hindustan is reported to have continued till 1906 while the other two failed in the meantime. In the first half of the 19 th century of East India Company establish three banks; The Bank of Bengal in 1809, the Bank of Bombay in 1840 and the bank of madras in 1843. These three banks also known as presidency Bank were independent units and functioned well. These three banks were amalgamated on 27th January 1921. With the passing of the State Bank of India Act in 1955 the Reserve Bank of India Act 1934. In the wake of the Swadeshi Movement, a number of bank with Indian management were establish in the country namely,

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Fast Facts

Indias banking industry has evolved over a long period of more than two centuries. Indias banking industry is considered to be very stable with healthy balance sheets and low exposure to risky assets. The global financial crisis did not affect the Indian banks significantly. Even after sustained growth since the nineties, the share of consumer credit remains very low in total bank loans. The banking sector in India has a relatively high proportion of women CEOs. The chief executives of leading domestic lenders ICICI Bank and Axis Bank, besides the country heads of HSBC, JP Morgan, UBS, and RBS are all women. Until recently, two among the Reserve Bank of Indias four deputy governors were also women.

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2. INTRODUCTION TO BANK

A bank has been described as an institution engaged in accepting deposits and granting loans. It is the institution which deals in money and credit. It can also be described as an institution which borrows idle resources, makes fund available to those who need it and helps in cheap remittance of money from one place to another. In the modern time term bank is used in wider term. Now it does not refer only to particular place of lending and depositing money but it also acts as an agent which looks after the various financial problems of its customers.

2.1 HISTORY OF BANKS:The banking system in India is based on British banking company which is largely branch banking. Commercial banks in India were started during the latter half of 19th century Bank of Bengal, Bank of Bombay and Bank of Madras were later amalgamated to form one bank called as Imperial bank of India under the Imperial bank of India Act 1920. The Imperial bank carried with business of commercial bank manages the public debt office of central and state government. The second half of 19th century saw establishment of Bank of Baroda, Allahabad bank, and Punjab National Bank. These banks were set up by merchants and traders to combined trading with banking. These led to the series if failures of banks. The strengthening of banking system took place after the establishment of Reserve Bank of India, 1939 as is empowers to regulate the banking money, inspection of mergers and acquisition in terms of Banking Companies Act 1949 which later came to be known as Banking Regulation Act 1949.

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2.2 FUNCTIONS OF BANKS:Though borrowing and lending constitute the main functions of banking, yet they are not only functions of commercial banks. Commercial banks are involved in diversified activities and perform varieties of function. The functions of a modern bank are classified under the following heads:

CHART: FUNCTION OF BANKS

ACCEPTING OF DEPOSITS

AGENCY FUNCTIONS

FUNCTION OF BANKS

ADVANCE OF LOANS

OTHER FUNCTIONS

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2.3 BANKING PRODUCTS:Banks in India have traditionally offered mass banking products. Most common deposit products being Savings Bank, Current Account, Term deposit Account and lending products being Cash Credit and Term Loans. Due to Reserve Bank of India guidelines, Banks have had little to do besides accepting deposits at rates fixed by Reserve Bank of India and lend amount arrived by the formula stipulated by Reserve Bank of India at rates prescribed by the latter. PLR (Prime lending rate) was the benchmark for interest on the lending products. But PLR itself was, more often than not, dictated by RBI. Further, remittance products were limited to issuance of Drafts, Telegraphic Transfers, and Bankers Cheque and Internal transfer of funds. In view of several developments in the 1990s, the entire banking products structure has undergone a major change. As part of the economic reforms, banking industry has been deregulated and made competitive. New players have added to the competition. IT revolution has made it possible to provide ease and flexibility in operations to customers. Rapid strides in information technology have, in fact, redefined the role and structure of banking in India. Further, due to exposure to global trends after Information explosion led by Internet, customers - both Individuals and Corporate - are now demanding better services with more products from their banks. Financial market has turned into a buyer's market. Banks are also changing with time and are trying to become one-stop financial supermarkets. A few foreign & private sector banks have already introduced customized banking products like Investment Advisory Services, SGL II accounts, Photocredit cards, Cash Management services, Investment products and Tax Advisory services. A few banks have gone in to market mutual fund schemes. Eventually, the Banks plan to market bonds and debentures, when allowed. Insurance
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peddling by Banks will be a reality soon. The recent Credit Policy of RBI announced on 27.4.2000 has further facilitated the entry of banks in this sector. Banks also offer advisory services termed as 'private banking' - to "high relationship - value" clients.

2.4 INTRODUCTION TO FINANCIAL SERVICES:The Indian financial services industry has undergone a metamorphosis since 1990. During the late seventies & eighties, the Indian financial services industry was dominated by commercial banks and other financial institution which cater to the requirements of the Indian industry. The economic liberalization has brought in a complete transformation in the Indian financial services industry. The term Financial Services in a broad sense means mobilizing and allocating savings. Thus it includes all activities involved in the transformation of savings into investment. The financial service can also be called financial intermediation. Financial intermediation is a process by which funds are mobilized from a large number of savers and make them available to all those who are in need of it and particularly to corporate customers. Thus, financial service sector is a key area and it is very vital for industrial developments. A well developed financial services industry is absolutely necessary to mobilize the savings and to allocate them to various investable channels and thereby to promote industrial development in a country. Financial services, through network of elements such as financial institution, financial markets and financial instruments, serve the needs of individuals, institutions and corporate. It is through these elements that the functioning of the financial system is facilitated. Considering its nature and importance, financial services are regarded as the fourth element of the financial system.
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2.5 FEATURES OF FINANCIAL SERVICE: Customer-Oriented: Like any other service industry financial service industry is also a customer-oriented one. That customer is the king and his requirements must be satisfied in full should be the basic tenent of any financial service industry. It calls for designing innovative financial products suitable to varied risk-return requirements of customer. Intangibility: Financial services are intangible and therefore, they cannot be standardized or reproduced in the same form. Hence, there is a need to have a track record of integrity, reputation, good corporate image and timely delivery of services. Simultaneous Performance: Yet another feature is that both production and supply of financial services have to be performed simultaneously. Therefore, both suppliers of services and consumers should have a good rapport, clear-cut perception and effective communication. Dominance of Human Element: Financial services are dominated by human element and thus, they are people-intensive. It calls for competent and skilled personnel to market the quality financial products. But, quality cannot be homogenized since it varies with time, place and customer to customer. Perishability: Financial services are immediately consumed and hence inventories cannot be created. There is a greater need for balancing demand and supply properly. In other words, marketing and operations should be closely inter-linked.

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2.6 IMPORTANCE OF FINANCIAL SERVICES: Economic Growth: The financial service industry mobilizes the savings of the people and channels them into productive investment by providing various services to the people. In fact, the economic development of a nation depends upon these savings and investment. Promotion of Savings: The financial service industry promotes savings in the country by providing transformation services. It provides liability, asset and size transformation service by providing large loans on the basis of numerous small deposits. It also provides maturity transformation services by offering short-term claim to savers on their liquid deposit and providing long-term loans to borrowers. Capital Formation: The financial service industry facilitates capital formation by rendering various capital market intermediary services capital formation in the very basis for economic growth. It is the principal mobilizer, of surplus funds to finance productive activities and thus it promotes capital accumulation. Provision of Liquidity: The financial service industry promotes liquidity in the system by allocating and reallocating savings and investment into various avenues of economic activity. It facilitates easy conversion of financial asset into liquid cash at the discretion of the holder of such assets. Financial Intermediation: The financial service industry facilitates the function of intermediation between savers and investors by providing a means and a medium of exchange and by undertaking innumerable services.

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 Contribution to GNP: The contribution of financial services to GNP has been going on increasing year after year in almost all countries in recent times. Creation of Employment Opportunities: The financial service industry creates and provides employment opportunities to millions of people all over the world.

2.7 SOURCES OF REVENUE:Accordingly, there are two categories of sources of income for a financial service company namely: fund based & fee- based. Fund-based income comes mainly from interest spread, lease rentals, income from investments in capital market and real estate. On the other hand, fee based income has its sources in merchant banking, advisory services, custodial services, loan syndication etc. income has its sources in merchant banking, advisory services, custodial services, loan syndication etc. A major part of income is earned through fundbased activities. At the same time, it involves a large share of expenditure in the form of interest & brokerage. It means that such companies should have to compromise the quality of its investment. On the other hand fee-based income does not involve much risk.

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CLASSIFICATION OF FINANCIAL SERVICES

FUND BASED ACTIVITIES

FEE BASED ACTIVITIES

~ Leasing ~ Hire Purchase ~ Discounting ~ Loans ~ venture Capital ~ Housing ~ Factoring

~ Issue Management ~ Portfolio Management ~ Capital Management ~ Loan Sysndication ~ Merger & Acquisition ~ Corporate Councelling ~ Foreign collaboration

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2.8 OBJECTIVES OF FINANCIAL SERVICES: Fund raising: Financial services help to raise the required funds from a host of investors, individuals, institution and corporate. For this purpose, various instruments of finance are used. Funds deployment: An array of financial services is available in the financial markets which help the players to ensure an effective deployment of funds raised. Services such as bill discounting, parking of short-term funds in the money market, credit rating &securitization of debts are provided by financial services firms in order to ensure efficient management of funds. Specialized services: The financial service sector provides specialized services such as credit rating, venture capital financing, lease financing, mutual funds, credit cards, housing finance, etc besides banking and insurance. Institutions and agencies such as stock exchanges, nonbanking finance companies, subsidiaries of financial institutions, banks & insurance companies also provide these services. Regulation: There are agencies that are involved in the regulation of the financial services activities. In India, agencies such as the Securities and Exchange Board of India (SEBI), Reserve Bank of India (RBI) and the Department of Banking and Insurance of the Government of India, regulate the functioning of the financial service institutions. Economic growth: Financial services contribute, in good measure, to speeding up the process of economic growth & development.

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2.9 CAUSES OF FINANCIAL INNOVATION:Financial intermediaries have to perform the task of financial innovation to meet the dynamically changing needs of the economy. There is a dire necessity for the financial intermediaries to go for innovation due to following reasons: Low profitability: The profitability of the major financial intermediary, namely banks has been very much affected in recent times. There is a decline in the profitability of traditional banking products. So, they have compelled to seek out new products which may fetch high returns. Keen competition: The entry of many financial intermediaries in the financial sector market has led to severe competition among themselves. This keen competition has paved the way for the entry of varied nature of innovative financial products so as to meet the varied requirements of the investors. Economic liberalization: Reform of the financial sector constitutes the most important component of Indias programme towards economic liberalization. The recent economic liberalization measures have opened the door to foreign competitors to enter into our domestic market. Deregulation in the form of elimination of exchange controls and interest rate ceilings have made the market more competitive. Innovation has become a must for survival. Improved communication technology: The communication technology has become so advanced that even the worlds issuers can be linked with the investors in the global financial market without any difficulty by means of offering so many options and opportunities. Hence, innovative products are brought into the domestic market in no time.

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 Customer service: Nowadays, the customers expectations are very great. They want newer products at lower cost or at lower credit risk to replace the existing ones. To meet this increased customer sophistication, the financial intermediaries are constantly undertaking research in order to invent a new product which may suit to the requirement of the investing public. Innovations thus help them in soliciting new business. Global impact: Many of the providers and users of capital have changed their roles all over the world. Financial intermediaries have come out of their traditional approach and they are ready to assume more credit risks. As a consequence, many innovations have taken place in the global financial sector which has its own impact on the domestic sector also. Investor awareness: With a growing awareness amongst the investing public, there has been a distinct shift from investing the savings in physical assets like gold, silver, land etc. to financial assets like shares, debentures, mutual funds etc. To meet the growing awareness of the public, innovation has become the need of the hour.

2.10 PRESENT SCENARIO OF FINANCIAL SERVICES: Conservatism to dynamism: At present, the financial system in India is in a process of rapid transformation, particularly after the introduction of reforms in the financial sector. The main objective of the financial sector reforms is to promote an efficient, competitive and diversified financial system in the country. This is essential to raise the allocate efficiency of available savings and to promote the accelerated growth of the economy as a whole. The emergence of various financial institution and regulatory bodies has transformed the financial services sector from being a conservative industry to a very dynamic one.
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 Emergence of Primary Equity Market: The capital markets have become a popular source of raising finance. The aggregate funds raised by the industries have gone from Rs. 5976 crore in 1991-92 to Rs. 32382 crore in 2006-07. Thus the primary market has emerged as an important vehicle to channelize the savings of the individuals and corporates for productive purposes and thus to promote the industrial & economic growth of our nation. Concept of Credit Rating: The investment decisions of the investors have been based on factors like name recognition of the company, reputation of promoters etc. now, grading from an independent agency would help the investor in his portfolio management and thus, equity grading is going to play a significant role in investment decision making. Now it is mandatory for non-banking financial companies to get credit rating for their debt instruments. The major credit rating agencies functioning in India are: Credit Rating Information Services of India Ltd. Credit Analysis and Research Ltd. Investment Information and Credit Rating Agency. Duff Phelps Credit Rating Pvt. Ltd. Process of Globalization: The process of globalization ha paved the way for the entry of innovative financial products into our country. The government is very keen in removing all obstacles that stand in the way of inflow of foreign capital. India is likely to enter the full convertibility era soon. Hence, there is every possibility of introduction of more and more innovative financial services in our country.

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 Process of Liberalization: The government of India has initiated many steps to reform the financial services industry. The Government has already switched over to free pricing of issues from pricing issues by the Controller of capital issues. The interest rates have been deregulated. The private sector has been permitted to participate in banking and mutual funds and the public sector undertakings are being privatized. The financial service industry in India has to play a positive and dynamic role in the years5 India has to play a positive and dynamic role in the years to come by offering many innovative products to suit to the varied requirements of the millions of prospective investors spread throughout the country.

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3.VARIOUS CHANNELS THROUGH WHICH PRODUCTS & SERVICES ARE OFFERED BY BANKS

CHARTS: VARIOUS CHANNELS OF SERVICES BRANCHES

INTERNET BANKING

MOBILE BANKING

TELEPHONE BANKING

ATM

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3.1 BRANCHES A branch, banking center or financial center is a retail location where a bank, credit union, or other financial institution offers a wide array of face-to-face and automated services to its customers. In the period from 1100-1300 banking started to expand across Europe and banks began opening branches in remote, foreign locations to support international trade. Historically, branches were housed in imposing buildings, often in a neo-classical architecture style. Today, branches may also take the form of smaller offices within a larger complex, such as a shopping mall. Traditionally, the branch was the only channel of access to a financial institutions services. Services provided by a branch include cash withdrawals and deposits from a demand account with a bank teller, financial advice through a specialist, safe deposit box rentals, bureau de change, insurance sales, etc. As of the early 21st Century, features such as Automated Teller Machine (ATM), telephone and online banking, allow customers to bank from remote locations and after business hours. This has caused financial institution to reduce their branch business hours and to merge smaller branches into larger ones. They converted some into mini-branches with only ATMs for cash withdrawal and depositing; computer terminals for online banking and cheque depositing machines. Some financial institutions, to show a friendlier image, offer a boutique or coffee house-like environment in their branches, with sit-down counters, refreshments, interactive displays. Some branches also have drive-through teller windows or ATMs.

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3.2 MOBILE BANKING Mobile banking also known as M-Banking, SMS Banking is a term used for performing balance checks, account transactions, payment etc. Over the last few years, the mobile and wireless market has been one of the fastest growing markets in the world and it is still growing at a rapid pace. With mobile technology, banks can offer services to their customers such as doing funds transfer while travelling, receiving online updates of stock price or even performing stock trading while being stuck in traffic. A specific sequence of SMS messages will enable the system to verify if the client has sufficient funds in his or her wallet and authorize a deposit or withdrawal transaction at the agent. Many believe that mobile users have just started to fully utilize the data capabilities in their mobile phones. In Asian countries like India, China, where mobile infrastructure is comparatively better than the fixed-line infrastructure, and in European countries, where mobile phone penetration is very high, mobile banking is likely to appeal even more.

Mobile Banking Services Account Information 1) Mini-statement and checking of account history 2) Alerts on account activity 3) Monitoring of term deposits 4) Access to loan statements 5) Access to card statements 6) Mutual fund/ equity statements 7) Pension plan management
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8) Insurance policy management 9) Status on cheque, stop payment on cheque 10) Ordering cheque books 11) Balance checking in the account 12) Recent transactions 13) Due date of payment 14) PIN provision 15) Blocking of cards Payments, Deposits, Withdrawals and Transfers 1) Domestics and international fund transfers 2) Micro-payment handling 3) Mobile recharging 4) Commercial payment processing 5) Bill payment processing 6) Peer to Peer payments 7) Withdrawal at banking agent 8) Deposit at banking agent

3.3 TELEPHONE BANKING Telephone banking is a service provided by a financial institution , which allows its customers to perform transactions over the telephone. Most telephone banking services use an automated phone answering system with phone keypad response or voice recognition capability. To guarantee security, the customer must first authenticate through a numeric or verbal password or through security questions asked by a live representative.

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With the obvious exception of cash withdrawals & deposits, it offers virtually all the features of an automated teller machine: account balance information and list of latest transactions, electronic bill payments, funds transfers between a customers accounts.etc Usually, customers can also speak to alive representative located in a call centre or a branch, although this feature is not always guaranteed to be offered 24/7. In addition to the self-service transactions listed earlier, telephone banking representatives are usually trained to do what was traditionally available only at the branch: loan applications, investments purchases and redemptions, cheque book orders, debit card replacements, change of address, etc Banks which operate mostly or exclusively by telephone are known as phone banks. They also help modernize the user by using special technology.

3.4 INTERNET BANKING Internet banking or E-banking means any user with a personal computer and a browser can get connected to his bank -s website to perform any of the virtual banking functions. In internet banking system the bank has a centralized database that is web-enabled. All the services that the bank has permitted on the internet are displayed in menu. Any service can be selected and further interaction is dictated by the nature of service. The traditional branch model of bank is now giving place to an alternative delivery channels with ATM network. Once the branch offices of bank are interconnected through terrestrial or satellite links, there would be no physical identity for any branch. It would a borderless entity permitting anytime, anywhere and any how banking.

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INTERNET BANKING SERVICES 1) Bill Payment Service: You can facilitate payment of electricity and telephone bills, mobile phone, credit card and insurance premium bills as each bank has tie-ups with various utility companies, service providers and insurance companies, across the country. To pay your bills, all you need to do is complete a simple one-time registration for each biller. You can also set up standing instructions online to pay your recurring bills, automatically. Generally, the bank does not charge customer for online bill payment. 2) Fund Transfer: You can transfer any amount from one account to another of the same or any another bank. Customers can send money anywhere in India. Once you login to your account, you need to mention the payees account number, his bank and the branch. The transfer will take place in a day or so, whereas in a traditional method, it takes about three working days. 3) Credit Card Customers: With Internet banking, customers can not

only pay their credit card bills online but also get a loan on their cards. If you lose your credit card, you can report lost card online. 4) Investment: You can now open an FD online through funds transfer. Now investors with interlinked demat account and bank account can easily trade in the stock market and the amount will be automatically debited from their respective bank accounts and the shares will be credited in their demat account. Moreover, some banks even give you the facility to purchase mutual funds directly from the online banking system. 5) Recharging your Prepaid Phone: Now just top-up your prepaid mobile cards by logging in to Internet banking. By just selecting your operator's name, entering your mobile number and the amount for recharge, your phone is in action within no time.
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6) Shopping: With a range of all kind of products, you can shop online and the payment is also made conveniently through your account. You can also buy railway and air tickets through Internet banking.

3.5 AUTOMATED TELLER MACHINE (ATM) Automated Teller Machine is a mechanism which enables the customer to withdraw money from his account without visiting the bank branch. An ATM card is issued to the customer by the bank in order to make cash withdrawals at cash machine. This service helps the ATM customer to withdraw money even when the banks are closed. This can be done by inserting the card in the ATM and entering the Personal Identification Number & secret password. ATMs act as off-site branches of banks and provide almost all services that are available from a manually operated branch. The customer can, not only withdraw cash, but also deposit money, get account statements, enable transfer of funds etc. The customer who wants to deposit cash should put the notes in the pouch available at the ATM counter close it, seal it by signing & put it in the slot provided for this purpose. The bank staff will collect the packet when they come for loading cash in the machine & credit the amount to the account. However, the customer has to sign an undertaking with the bank that he would not dispute on the amount credited. ATM has gained prominence as a delivery channel for banking transactions in India. Now customers will not be levied any fee on cash withdrawals using ATM & debit cards issued by other banks. This will in turn increase usage of ATMs in India. ATM allows customers: To view account information To deposit cheques or cash To order cheques and receive cash.

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Benefits of ATM: To the ATM Customer 1) ATM customer can utilize any possible facility availed from the ATM e.g. balance enquiry, withdrawal, deposits, etc 2) Anytime banking, 24 hours a day, 7 days a week has become a main service to the ATM customers who cannot manage to visit bank during banking hours 3) Convenience acts as a tremendous psychological benefit all the time 4) Cash withdrawal from any branch through ATM To the Bank 1) Innovative, secure, competitive and presents the bank as technology driven in the banking sector market. 2) Reduces customer visits to the branch & thereby human intervention. 3) Inter-branch reconciliation is immediate thereby reducing chances of fraud.

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4. HISTORY OF ICICI BANK

ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution, and was its wholly-owned subsidiary. ICICI's shareholding in ICICI Bank was reduced to 46% through a public offering of shares in India in fiscal 1998, an equity offering in the form of ADRs listed on the NYSE in fiscal 2000, ICICI Bank's acquisition of Bank of Madura Limited in an all-stock amalgamation in fiscal 2001, and secondary market sales by ICICI to institutional investors in fiscal 2001 and fiscal 2002. ICICI was formed in 1955 at the initiative of the World Bank, the Government of India and representatives of Indian industry. The principal objective was to create a development financial institution for providing medium-term and long-term project financing to Indian businesses. In the 1990s, ICICI transformed its business from a development financial institution offering only project finance to a diversified financial services group offering a wide variety of products and services, both directly and through a number of subsidiaries and affiliates like ICICI Bank. In 1999, ICICI become the first Indian company and the first bank or financial institution from nonJapan Asia to be listed on the NYSE. After consideration of various corporate structuring alternatives in the context of the emerging competitive scenario in the Indian banking industry, and the move towards universal banking, the managements of ICICI and ICICI Bank formed the view that the merger of ICICI with ICICI Bank would be the optimal strategic alternative for both entities, and would create the optimal legal structure for the ICICI group's universal banking strategy. The merger would enhance value for ICICI shareholders through the merged entity's access to lowcost deposits, greater opportunities for earning fee-based income and the ability to participate in the payments system and provide transaction-banking services.
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The merger would enhance value for ICICI Bank shareholders through a large capital base and scale of operations, seamless access to ICICI's strong corporate relationships built up over five decades, entry into new business segments, higher market share in various business segments, particularly fee-based services, and access to the vast talent pool of ICICI and its subsidiaries. In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger of ICICI and two of its wholly-owned retail finance subsidiaries, ICICI Personal Financial Services Limited and ICICI Capital Services Limited, with ICICI Bank. The merger was approved by shareholders of ICICI and ICICI Bank in January 2002, by the High Court of Gujarat at Ahmedabad in March 2002, and by the High Court of Judicature at Mumbai and the Reserve Bank of India in April 2002. Consequent to the merger, the ICICI group's financing and banking operations, both wholesale and retail, have been integrated in a single entity. ICICI Bank has formulated a Code of Business Conduct and Ethics for its directors and employees.

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5. INTRODUCTION OF THE ICICI BANK

ICICI Bank is the largest private sector bank in India in terms of market capitalization. It is also the second largest bank in India in terms of assets with a total asset of Rs. 4,062 billion (US$ 91 billion) as on March 31, 2011, the total profit after tax has been Rs. 51.51 billion (US$ 1,155 million) for the year ended March 31, 2011. Formerly known as Industrial Credit and Investment Corporation of India, ICICI Bank has an extensive network of 2,533 branches with about 6,700 ATMS located across India and in 18 other countries. ICICI Bank serves about 24 Million customers throughout the world. It is considered as one of the Big Four Banks in India along with State Bank of India, HDFC Bank and Axis Bank. ICICI Bank provides a wide range of banking products and financial services to its retail and corporate customers. It has a wide variety of delivery channels and specialized affiliates and subsidiaries that ensure the flow of its offerings in the areas like investment banking, venture capital, life and non-life insurance and asset management. This bank is also Indias largest credit card issuer. The equity share of ICICI Bank is listed on various stock exchanges like NSE, BSE, Calcutta Stock Exchange and Vadodara Stock Exchange etc. Its ADRs are also listed on the New York Stock Exchange. ICICI Bank also has the largest international balance sheet among all the banks in India. It is also expanding its business in the overseas market at an enviable pace. In Q2 September 2008, ICICI Bank recorded a 1.15% growth in net profit over Q2 September 2007 to reach at Rs 1,014.21crores. The current and savings account (CASA) ratio of bank also went up from 25% in 2007 to 30% in 2008

Vision Our vision is a world free of poverty in which every individual has the freedom and power to create and sustain a just society in which to live.
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Mission Our mission is to create and support strong independent organisations which work towards empowering the poor to participate in and benefit from the Indian growth process.

Universal Banking Finally, first Indian Universal Bank will be born on March 31 2002. In effect, this means ICICI will become a bank on that day (provided the Reserve Bank of India gives it nod) fulfilling all the statutory requirements. In addition to RBI approval, this merger will be subject to various other approvals, including the approval of the shareholders of the respective companies, the High Courts of Mumbai and Gujarat, and the Centre. The boards of ICICI and its 46 per cent banking subsidiary ICICI Bank on 25th October approved the reverse merger of the parent into the bank, the appointed date for which has been fixed as March 31, 2002 or the date of approval of the merger by the Reserve Bank of India (RBI), whichever is later. Swap ratio will be one share of ICICI Bank for every two shares of ICICI. The ADS holders of ICICI would, consequently, get five ADS of ICICI Bank in exchange for four ADS of ICICI, as each ADS of the FI represents five domestic equity shares, while each ADS of the bank represents two domestic shares. The swap ratio was based on the recommendations of the merchant bankers JM Morgan Stanley, appointed by ICICI, DSP Merrill Lynch, appointed by ICICI Bank, and the accounting firm, Deloitte, Haskins & Sells, appointed jointly by both the entities involved in the merger. ICICI is going in bullet migration path towards universal banking instead of taking a gradual approach. The combination of easy liquidity and low interest rate regime has prompted the financial institution to follow this transition approach. ICICI had initially set a 18 month transition period for conversion into universal bank. However with the announcement that the merged entity will start off with the mandated CRR and SLR investments the transition period has now been reduced to 5 months.

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The merged entity, which will have 11 subsidiaries, in order to adhere to norms laid down for commercial banks by the Reserve Bank of India (RBI) pertaining to cash reserve ratio (CRR), statutory liquidity ratio (SLR) would require a hefty Rs 18,000 crore towards its CRR and SLR obligations. With this merger, ICICI Bank, the merged entity, will be the second largest commercial bank in the country after the State Bank of India (SBI) with assets of Rs 95,000 crore (September 30, 2001). SBI has assets of over Rs 3,16,000 crore. The combined entity would have 396 existing branches/ extension counters of the ICICI Bank, 140 retail financial offices and centres of ICICI and 8,275 employees. ICICIs holding of 46 per cent in its banking subsidiary would not be cancelled under the scheme of amalgamation, but is proposed to be held in Trust for the benefit of the merged entity. Financial institutions would have 20 per cent in the merged entity, with the foreign holding at 47 per cent and the rest with the public. ICICIs 46 per cent stake would correspond to a 15 per cent stake in the merged entity. At the time of the merger, ICICI Bank would align the Indian GAAP (generally accepted accounting practices) of ICICI to those of ICICI Bank, including a higher general provision against standard assets. Further, in accordance with international best practices in accounting, ICICI Bank has decided to adopt the purchase method of accounting, which is mandatory under US GAAP, to account for the merger under Indian GAAP as well. After merger, N Vaghul, will be the chairman & K V Kamath will be the managing director and CEO of the bank. H N Sinor and Lalitha Gupte will hold the number two slots in the merged entity with both being designated as joint managing directors. Kalpana Morparia, S Mukherji, Chanda D Kochhar and Nachiket M Mor will retain their positions as executive directors. The retail segment will be a key driver of growth for the merged entity, with respect to both assets and liabilities .The new entity will leverage on its large capital base, comprehensive suite of products and services, extensive corporate and retail customer relationships, technology-enabled distribution architecture, strong brand franchise and vast talent pool. Universal Banking includes not only services related to savings and loans but also investments. However in practice the term 'universal banks' refers to those
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banks that offer a wide range of financial services, beyond commercial banking and investment banking, insurance etc. Universal banking is a combination of commercial banking, investment banking and various other activities including insurance. If specialised banking is the one end universal banking is the other. This is most common in European countries. Universal banking has some advantages as well as disadvantages. The main advantage of universal banking is that it results in greater economic efficiency in the form of lower cost, higher output and better products. However larger the banks, the greater the effects of their failure on the system. Also there is the fear that such institutions, by virtue of their sheer size, would gain monopoly power in the market, which can have significant undesirable consequences for economic efficiency. Also combining commercial and investment banking can gives rise to conflict of interests .Conflict of interests was one of the major reasons for introduction of Glass-Steagall Act in US.

Universal banking in India In India Development financial institutions (DFIs) and refinancing institutions (RFIs) were meeting specific sectoral needs and also providing long-term resources at concessional terms, while the commercial banks in general, by and large, confined themselves to the core banking functions of accepting deposits and providing working capital finance to industry, trade and agriculture. Consequent to the liberalisation and deregulation of financial sector, there has been blurring of distinction between the commercial banking and investment banking. Reserve Bank of India constituted on December 8, 1997, a Working Group under the Chairmanship of Shri S.H. Khan to bring about greater clarity in the respective roles of banks and financial institutions for greater harmonisation of facilities and obligations . Also report of the Committee on Banking Sector Reforms or Narasimham Committee (NC) has major bearing on the issues considered by the Khan Working Group. The issue of universal banking resurfaced in Year 2000, when ICICI gave a presentation to RBI to discuss the time frame and possible options for transforming itself into an universal bank. Reserve Bank of India also spelt out
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to Parliamentary Standing Committee on Finance, its proposed policy for universal banking, including a case-by-case approach towards allowing domestic financial institutions to become universal banks. Now RBI has asked FIs, which are interested to convert itself into a universal bank, to submit their plans for transition to a universal bank for consideration and further discussions. FIs need to formulate a road map for the transition path and strategy for smooth conversion into an universal bank over a specified time frame. The plan should specifically provide for full compliance with prudential norms as applicable to banks over the proposed period.

Approach to Universal Banking The Narsimham Committee II suggested that Development Financial Institutions (DFIs) should convert ultimately into either commercial banks or non-bank finance companies. The Khan Working Group held the view that DFIS should be allowed to become banks at the earliest. The RBI released a 'Discussion Paper' (DP) in January 1999 for wider public debate. The feedback on the discussion paper indicated that while the universal banking is desirable from the point of view of efficiency of resource use, there is need for caution in moving towards such a system by banks and DFIs. Major areas requiring attention are the status of financial sector reforms, the state of preparedness

of the concerned institutions, the evolution of the regulatory regime and above all a viable transition path for institutions which are desirous of moving in the direction of universal banking. It is proposed to adopt the following broad approach for considering proposals in this area: The principle of "Universal Banking" is a desirable goal and some progress has already been made by permitting banks to diversify into investments and long-term financing and the DFIs to lend for working capital, etc. However, banks have certain special characteristics and as such any dilution of RBI's prudential and supervisory norms for conduct of banking business would be inadvisable. Further, any conglomerate, in which a bank is present, should be subject to a consolidated approach to supervision and regulation. Though the DFIs would continue to have a special role in the Indian financial System, until the debt market demonstrates substantial
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improvements in terms of liquidity and depth, any DFI, which wishes to do so, should have the option to transform into bank (which it can exercise), provided the prudential norms as applicable to banks are fully satisfied. To this end, a DFI would need to prepare a transition path in order to fully comply with the regulatory requirement of a bank. The DFI concerned may consult RBI for such transition arrangements. Reserve Bank will consider such requests on a case by case basis. The regulatory framework of RBI in respect of DFIs would need to be strengthened if they are given greater access to short-term resources for meeting their financing requirements, which is necessary. In due course, and in the light of evolution of the financial system, Narasimham Committee's recommendation that, ultimately there should be only banks and restructured NBFCs can be operationalised.

Competitors of ICICI Bank List of Private Banks in India

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Bank of Punjab Bank of Rajasthan Catholic Syrian Bank Centurion Bank City Union Bank Dhanalakshmi Bank Development Credit Bank Federal Bank HDFC Bank ICICI Bank

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IndusInd Bank ING Vysya Bank Jammu & Kashmir Bank Karnataka Bank Karur Vysya Bank Laxmi Vilas Bank South Indian Bank United Western Bank UTI Bank

The following are the list of Public Sector Banks in India

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Allahabad Bank Andhra Bank Bank of Baroda Bank of India Bank of Maharastra Canara Bank Central Bank of India Corporation Bank Dena Bank IDBI Bank Indian Bank
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Indian Overseas Bank Oriental Bank of Commerce Punjab & Sind Bank Punjab National Bank Syndicate Bank UCO Bank Union Bank of India United Bank of India Vijaya Bank

List of State Bank of India and its subsidiary, a Public Sector Banks
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State Bank of Bikaner & Jaipur State Bank of Hyderabad State Bank of Indore State Bank of Mysore State Bank of Saurastra State Bank of Travancore

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5.1 Branches & ATM

ICICI Bank has a wide network both in Indian and abroad. In India alone, the bank has 2,533 branches and about 6,700 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.

5.2 PRODUCTS & SERVICES

ICICI Bank offers a host of products and services to its clients. The various types of services are as follows:

A) Deposits
ICICI bank offers a wide rang of banking account such as current, saving, life plus, senior recurring deposit, young stars, salary account etc. tailor made for every customer segments, from children to senior citizen. Convenience and case to access are the benefit of icici bank account.

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CHART: TYPES OF DEPOSITS

Current Account

SafeDeposits Lockers

Fixed Deposit

Demat Account Reccuring Deposit

Savings Account

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CURRENT ACCOUNT:Basically a current account is opened for artificially created entity. This artificially created entity can be a firm, sole proprietorship, association, partnership or any thing else. Interest is also paid on the current account. Tools for opening of the Current accounts Walk in: - There was a huge number of walk in customers in KMB, we use to open their current accounts. References: - References were being collected from the leads which we were having and from other sources like Chartered Accountants, Relatives, Friends etc. Cold Calls: - This refers to the telephonic call, which we use to make; we use to take appointment before approaching the person.

SAVINGS ACCOUNT:ICICI bank savings account has been designed to offer you a valuable banking experience. Under savings accounts, bank offers various facility like Debit-cumATM card to withdraw cash from any ATM. Money Multiplier facility that enables the transfer of your idle money into a high interest savings account. Further there are Internet banking facility, 24-hour Customer Care service, Mobile banking, Standing instructions, Nomination facility and Bank@home facility that allows you to order cash deposits and withdrawals from home. The services include cash / cheques deposits and cash/DD/PO delivery at home, DD call and collect facility. An ICICI Bank Savings Account offers you a valuable banking experience.

Debit-cum-ATM Card
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Money Multiplier Facility Internet Banking Customer Care Mobile Banking Nomination facility

FIXED DEPOSITS:ICICI bank has a set of choice of investment plans attached to fixed deposit. You get a wide range of tenures along with auto renewal facility on maturity of deposits. You can open term deposit with nominal amount of Rs 1000/- only. Bank has a loan facility against deposit. The re-investment plans on fixed deposits are lucrative as re-investment fixed deposit rates do not change in fact works like a recurring debit account transaction.

Fixed Deposit Articles Credit profile and its effect on loan rates in India. Fixed Deposits: Safest instrument to invest Complete guide to TDS on fixed deposits in India Carnival of Indian Personal Finance Bogs Medical Insurance: Save tax along with health Tax saver fixed deposits in India earn you more Things to know before retirement J&K Bank raises PLR

RECURRING DEPOSIT ACCOUNT:Under recurring deposit account, a specific amount is invested in bank on monthly basis for a fixed rate of return. The deposit has a fixed tenure, at the
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end of which the principal sum as well as the interest earned during that period is returned to the investor. Recurring Bank Account provides the element of compulsion to save at high rates of interest applicable to Term Deposits along with liquidity to access those savings any time. Loan/ Overdraft facility is also available against Recurring Bank Deposits. The deposit for RD account is paid in monthly installments and each subsequent monthly installment has to be made before the end of the month and is equal to the first deposit. In case of default in payment, penalty is levied for the delayed deposit.

DEMAT ACCOUNT:Some banks are depository participants. These banks offer demat accounts to their corporate clients. 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. A Demat Account holds portfolio of shares in electronic form and obviates the need to hold shares in physical form. The account offers a secure and convenient way to keep track of shares and investment without the hassle of handling physical documents that get mutilated or lost in transit. The Securities and Exchange Board of India (SEBI) mandates a demat account for share trading involving more than 500 countries. Benefits of Demat Account Protection against loss, theft, mutilation etc Transfer of shares immediately Shorter settlement cycles Protection against bad deliveries.
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SAFE-DEPOSIT LOCKERS:Safe deposit locker is a facility provided by banks to their customers to keep their valuables like jewellery, title deeds etc. Safe deposit locker is a steel cabinet having multiple cubicles. The safe deposit locker is kept inside the safe room and can be accessed only with the permission of the bank officials. A customer who is in need of a locker has to approach the bank. Customer has to mention a password in the application form for identification purpose when he comes for operating the locker. The customer has to remit annual rent for using the locker facility. The customer has full privacy in operating the locker. As per RBI guidelines, the place where the locker is kept should be segregated from the place where cash and valuables are stored using iron grill. When the customer wants to open the locker, he has to identify himself by telling the password and sign in a register noting the date and time of opening the locker which will be countersigned by the bank officials. The agreement of locker is a contract of bailment and the bank can terminate the agreement and demand the customer to vacate locker if any of the terms and conditions in the agreement are violated or the annual rent is not remitted for a long period. At present all the banks are having safe deposit locker facil

B) Cards
ICICI Bank is Indias largest issuer of credit cards. It also offers other types of card. The various cards offered by ICICI bank are as follows: Consumer Cards Credit Cards
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 Travel Cards Debit Cards Commercial Cards Corporate Cards Prepaid Cards Purchase Cards Distribution Cards Business Cards

CHART: TYPES OF CREDIT CARDS

OLD CREDIT CARDS Credit Card Charge Card In-store Card

NEW CREDIT CARDS Corporate Credit Card Business Card Smart Card Debit Card ATM Card Virtual Card

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CREDIT CARED:ICICI Bank is the second-largest bank in India. With an extensive network of 2533 branches and 6700 ATM's in India, ICICI Bank has an international presence in 18 countries. Among its highly accomplished banking and financial services are their credit cards. ICICI credit card is one of the top-rated ones in India. With a wide range of offers, ICICI Bank credit cards come as:

Premium Cards Classic Cards Value For Money Cards Co Branded Cards Affinity Cards EMI Cards

CHARGE CARD:A charge card is intended to serve as a convenient means of payment for goods purchased at Member Establishments rather than a credit facility. Instead of paying cash or cheque every time the credit card holder makes a purchase, this facility gives a consolidated bill for a specified period, usually one month. There are no interest charges and no spending limits either. The charge card is useful during business trips and for entertainment expenses which are usually borne by the company. Andhra Bank card, BOB cards, Can card, Diners Club card etc. belong to this category.

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IN-STORE CARD:The in-store cards are issued by retailers or companies. These cards have currency only at the issuers outlets for purchasing products of the issuer company. Payment can be on monthly or extended credit basis. For extended credit facility interest is charged. In India, such cards are normally issued by Five Star Hotels, resorts and big hotels.

CORPORATE CREDIT CARDS:Corporate cards are issued to private and public limited companies and public sector units. Depending upon the requirements of each company, operative Add-on cards will be issued to the persons authorized by the company. The name of the company will be embossed on Add-on cardholder. The transactions made by Add-on cardholders are billed to the main card and debits are made to the Companys Account.

BUSINESS CARD:A business card is similar to a corporate card. It is meant for the use of proprietary concerns, firms, firms of Chartered Accountants etc. This card helps to avail of certain facilities for reimbursement and makes their business trip convenient.

SMART CARD:It is a new generation card. When a transaction is made using the card, the value is debited and the balance comes down automatically. Once the monetary value comes down to nil, the balance is to be restored all over again for the card to become operational. The primary feature of smart card is security. It prevents card related frauds & crimes.

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DEBIT CARDS:Debit card is popularly known as ATM card on the move. The debit card gives the freedom to access savings or current account through ATMs at merchant locations. Debit cards are also issued independent of ATM in which case the card is presented to the merchant establishment at the time of purchase as in a case of credit card. However, the account of the card holder will be debited instantly when the charge slip is presented by the merchant establishment instead of the card holder remitting the money as is being done in the case of credit card. Therefore, the card holder has to keep sufficient balance in his account before he uses the card. The debit card does have a daily limit which could be somewhere around Rs 15000 at ATMs and Rs 10000 at merchant locations. This again is subject to the balance available in the account.

ATM Card:An ATM (Automated Teller Machine) card is useful to a card holder as it helps him to withdraw cash from banks even when they are closed. This can be done by inserting the card in the ATM installed at various bank locations.

Virtual Card:A virtual card is a card that can be generated by anybody at any time provided he has already registered his name in the Banks website. One can also set monetary limits for each card, usually limited to the value of the item he intends to purchase and the value should be limited to his bank balance or the credit limit. This completely prevents misuse. It is a kind of facility offered to existing cardholders at free of cost.
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C) Loans
ICICI bank offers a range of deposits solution to meet varying needs at every stage of life. It offers a range of tenure and other features to suit all requirements. It is an arrangement by which a bank advance loans against any security like jewels, shares or debentures or insurance policy or personal security of the borrower. The interest is payable on the entire loan amount as decided by the bank. Loans can be classified as follows: CHART: VARIOUS TYPES OF LOANS

Personal Loans

Housing Loans

Educational Loans

Automobile Loans

Mortgage Loans

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Personal loans:The personal loans are granted to any customer or the non-customer if the bank is satisfied with the repayment capacity of the borrower. The borrower should have a steady income. Installment can be paid by depositing post dated cheques, authorization to debit the amount to the borrowers savings or current account, authorization to transfer interest on term deposit to the loan account, authorization to deduct the installment from the salary by the employer and remit to the bank etc. The interest varies from bank to bank. Normally banks allow 12 months to 60 months for repayment. Banks also charge time processing fee ranging from 1 to 3 percent per annum. Personal loans are generally unsecured because in most cases there is no primary security. Therefore, many banks demand collateral security in the form of landed property, gold ornaments, third party guarantee etc. Some banks instead of third party guarantee insist that another person should join as coobligant. Many banks prefer co-obligant as a guarantor because a co-obligant signs the original loan documents along with the borrower & therefore has a joint liability. The documentation is quite simple because there will be only a promissory note.

Housing Loans:Housing loans are given as direct loans and indirect loans. Direct loans are those loans given to the individuals or group of individuals including co-operative societies. The indirect loans are the term loans granted to housing finance institution, housing boards etc primarily engaged in the business of supplying serviced land and constructed house units. Banks are permitted to extend term

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loans to private builders. Banks are also granting loans under priority sector for housing purpose. Eligibility: Any person above 21 years but below the age of 65 years having sufficient disposable income, can avail housing loan from a bank. Some banks permit even upto 70 years if the borrower can produce proof of sufficient income to repay the loan. A self-employed person can also avail of housing loan, subject to compliance of the income criteria. Amount of Loan: The loan amount starts from Rs 2 lakh. However for weaker sections the loan can be availed even for a small amount. The maximum amount of loan is decided after considering the disposable income of the borrower. While calculating the income eligibility spouses income can also be considered. The other factors considered for deciding the repayment capacity are age, qualification, status of assets, liabilities, stability and continuity of occupation and savings history etc.

Educational Loans:Educational loans are extended with the aim to provide financial support from the banking system to deserving students for pursuing higher education in India & abroad. The main emphasis is that every student should get an opportunity to pursue education with financial support from the banking system on affordable terms and conditions. All banks are offering educational loans, but the schemes differ from bank to bank. The scheme aims at providing financial assistance on reasonable terms to the poor and needy to undertake basic education.

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Student Eligibility: The student should be an Indian national and should have secured admission to professional courses through entrance test process or should have secured admission to foreign university. The student has scored minimum 60 percent in the qualifying examination for admission to graduation courses. Repayment: Course period + 1 year or 6 months after getting job, whichever is earlier. The loan has to be repaid in five to seven years from commencement of repayment. If the student is not able to complete the course for the reasons beyond his control, sanctioning authority may at his discretion consider such extensions as may be deemed necessary to complete the course. Security: Up to Rs 2 lakh:- no security Above Rs 2 lakh:- collateral security equal to 100 % of the loan. Amount of guarantee of third person known to bank for 100% of the loan amount.

Automobile Loans:Banks are extending credit for purchase of new two or four wheeler for personal or professional use. Bank finance is also available for purchase of used cars less than 3 years old. Each bank has formulated their own schemes. Vehicle finance has now become one of the highly profitable areas and therefore banks and other financial institutions are competing with each other for attracting the customers, even by offering some concessions. As a result, the margin, interest rate & eligibility criteria differ from one bank to the other. The loans are to be
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repaid in 36 to 60 equated monthly installments. The maximum amount of loan is limited to 3 times of net income annual salary subject to a maximum of Rs 10 lakhs.

Security: Hypothecation of vehicle financed by the bank. Banks lien to be noted with the transport authorities. Guarantee of the spouse In case of unmarried, third party guarantee of sufficient means or other collateral securities acceptable to the bank.

Mortgage Loans:Mortgage loan is a financing arrangement in which a lender extends finance for acquisition of real estate against the security of the real estate purchased out of the loan. The borrower executes a mortgage deed which registers a lien on the property in favour of the lender. The title will be re-transferred when the borrower repays the loan in full with interest. Banks provide loan/overdraft facility against mortgage of property at low rate of interest to people engaged in trade, commerce and business and also to professionals and self employed, partnership firms, companies, NRIs and individuals with high net worth including salaried people. The product provides an opportunity to customers to borrow against a fixed asset at short notice. Repayment: The loan has to be repaid within a period of eight years by way of equated monthly installments. The repayment shall commence from the month
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subsequent to the month in which final disbursement is made or 6 months from the first disbursement, whichever is earlier. In case of agriculturists the repayment is related to the generation of farm income from crops & other subsidiary activities

HOME LOAN:ICICI Bank Home Loans, offer unbeatable benefits to ensure that you 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 for you and our Home Loan help you lay the foundation for your dream home. ICICI offers you the most convenient home loan plans to suit your needs. With so many attractive features in every type of home loan we offer, creating the home you always wanted is no longer a distant dream. Some of our key benefits are:

Guidance through out the process Home loan amounts suited to your needs Home Loan tenure up to 20 years Simplified Documentation Doorstep Service Attractive interest rates

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PERSONAL LOAN:There is some emergency and you need ready funds immediately ICICI bank provides you personal loan for all your financial needs. Bank offers loan at attractive interest rate with 12-60 months repayment options, faster processing. There is special offer for existing bank customers. ICICI Bank personal loan can be used for any legitimate purpose. The extent of personal loan that one can get depends on one's income and repayment capacity. Repayment track record on existing home loan or car loan or personal loan or credit card helps a borrower to get better rates and higher amount. Highlights of ICICI Bank personal loan Loan up to 15 laces. No security/guarantor required. 12-60 Months repayment options. Prepayment of the loan is possible after 180 days of availing. Part pre-payment is not allowed.

VEHICLE LOAN:ICICI Bank offers car loans up to 90% of the ex-showroom price of the car. Loan tenure can be extended up to 6 years which makes it easier to repay. ICICI Bank is the top financier for car loans in India. The bank has a network of more than 1800 channel partners in more than 1000 locations.

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Loan Amount
The loan amount depends on the car model. Minimum loan amount for a new car loan is Rs.1 lakh. For a used car the bank arranges finance for a maximum of 85% of the valuation of the car. Minimum loan amount sanctioned for a used car loan is Rs. 75000. For used cars the maximum tenure can be five years.

Interest Rates & Documents Required

Car Loans are available with Fixed and Floating Interest Rates. The amount of loan sanctioned depends on the strength of income related documents. On absence of income proof, loan could be sanctioned on producing the bank statement, loan repayment track record, etc. Income Proof has to be submitted for last two years. Prepayment of loan is allowed. However, one is not permitted to prepay in parts. ITR, Form 16, and Salary Slip can be submitted as the proof of income. One also has to submit proof of bank account continuity.

D) Investments
Investment is the employment of funds with the aim of getting return on it. It is the commitment of funds which have been saved from current consumption with the hope that some benefits will receive in future. Thus, it is a reward for waiting for money. Savings of the people are invested in assets depending on their risk and return. Investment avenues are the outlets of funds. In India, investment alternatives are continuously increasing along with new

developments in the financial market. An investor can himself select the best avenue after studying the merits and demerits of different avenues. Even

financial advertising, newspapers supplements on financial matters and

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investment journals offer guidance to investors in the selection of suitable investment avenues. Along with deposit product and loan offering, ICICI bank assist you to manage its. Fianc by providing various investment option ranging from ICICI bank tax saving bands to quit investment through initial public offer and investment in pure gold ICICI bank facilitates foiling investment. ICICI Bank Tax Saving Bounds. Government of India bonds. Investment on mutual funds. Initial Public Offer by corporate Investments in Gelds. Foreign Exchange Services Senior Citizen Saving Scheme, 2004

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CHART: ALTERNATIVES AVENUES FOR INVESTMENT

Real Estates

GOI Savings Bond Investment Avenues

Bonds & Debentures

Public Provident Fund

Gold & Silver

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PUBLIC PROVIDENT FUND (PPF):Public Provident Fund is one attractive tax sheltered investment scheme for middle class and salaried persons. It is even useful to businessmen and higher income earning people. The PPF scheme is very popular among the marginal income tax payers. Features of PPF scheme The PPF scheme is for a period of 15 years but can be extended at the desire of the depositor The depositor is expected to make a minimum deposit of Rs 100 every year The PPF account is not transferable, but nomination facility is available Tax exemption on investment is made. A compound interest at 8% per annum is paid

GOVERNMENT OF INDIA SAVING BOND:The GOI has recently started issuing 6.50% bonds which are reasonably attractive and secured investment for individuals and institutions. Features of Savings Bonds Interest 6.50%. Interest is payable half yearly or cumulative. Interest payment is exempted from income tax. Maturity period of 5 years Cumulative facility available. Rs 1000 become Rs 1377 after 5 years. REAL ESTATE PROPERTIES:75

Investment in the real estate is popular due to high saleable value after some years. Such properties include buildings, commercial premises, industrial land, plantations, farmhouses, agricultural land etc. They purchase such properties at low prices and do not sale them unless there is substantial increase in the market price. The resale price will be attractive in due course when they can recover 4 times the price paid. This is one attractive as well as profitable avenue for investment.

GOLD INVESTMENT:ICICI Gold Investment Opportunities include investments in Pure Gold, Mutual Funds and Bonds that help you in obtaining certain tax benefits as well as yield you high returns on maturity of the equity investments. ICICI Bank Pure Gold is available in select ICICI bank branches in the denominations of 2.5 g, 5 g, 8 g, 20 g, and 50 g. the biggest assurance of ICICI pure gold is the reliability of its pureness. All ICICI pure gold is 24-Carat imported from Switzerland with a 99.99% Assay Certification of highest purity levels as per the international standards. Besides this, ICICI Bank also offers gold schemes where in you have mutual funds and bonds to invest that yield sizeable returns. BONDS & DEBENTURES:It is possible to purchase bonds and debentures of joint stock companies for investment purpose. Debenture indicates loan given to the company at a specific rate of interest. Debentures are more popular than shares due to the safety and security available. Easy transferability by endorsement and delivery. Investment exempted from wealth-tax. Maturity period from 5-25 years.

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MUTUAL FUNDS:ICICI Bank Mutual Funds are available in multiple forms with options of creating your own investment portfolio with the help of professionals. The ICICI Bank investment managers help you analyze your risk potential and then decide upon the mutual funds depending upon the net asset value (NAV) of various schemes. Your money invested in ICICI Mutual Funds are used to buy securities of diverse nature, which are carefully selected by finance specialists. Diversification of you money in several types of bonds and securities ensure maximum gain even when the market is showing trends of slowdown. Profits generated through such investment are then passed on to the investors.

TAX SAVING SOLOUTION:ICICI Tax Saving Plans offer you investment opportunities through which you can save a large amount of your hard earned income from going away as taxes. ICICI Bank provides easy tax saving options that include tax saving bonds, tax saving fixed deposits and other investments. ICICI Tax Saving Plans are simple investment solutions that help you invest your surplus money into some kind of bonds, deposits or other schemes so that you get tax redemption under the income tax act and thereby save your money from slipping into the tax collector's hand.

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E) Insurance
ICICI group offers a range of insurance product to cover varying needs ranging from life, pensions and health to home, motor and travel insurance the product are made accessible to customers through a wide network of advisors banking partners. Corporate agent and brokers with the added convenience of being able to buy online. ICICI insurance policy helps you find the assurance of a financial security in times of absolute need. ICICI insurance policies provide you the peace of mind that comes as a free gift with any insurance plan or scheme. ICICI insurance policies cover: Home Loans Loan against Property Personal Loans Car Loans Two Wheeler Loans Commercial Vehicle Loans

Loans against Securities

F) NRI Services
Wherever people may be, in India or abroad, ICICI Bank has created a wide range of products and services that provide customers complete financial solutions. Helping them to make the right decisions at the right time and can be rest assured that they are in the safe and trustworthy hands of ICICI bank.
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Deposit Products:

1. NRE Account:An NRI can open a Non-Resident External Account (NRE Account) with any bank in India. The account not only lets customers manage their money that they earn in India (as permitted by FEMA Regulations) but also of the money earned abroad. The money in the account and the interest earned on it can be sent back outside India without any authorization from RBI. The Account can be opened and funded in any permissible currency, and is later converted into Indian Rupees. This Account offers dual benefits of high returns as offered by the fixed deposits and liquidity as offered by the savings account. The Account helps customers take care of all their financial needs, quickly and conveniently. In addition to attractive rupee interest rates customers get free money transfers, easy access for the customer as well as for his/her family back in India, and a free mandate card for the loved ones in India. Advantages of NRI Easy Rupee Account Free and Easy money transfer through www.money2india.com from the comfort of customers home or office. Customers get attractive exchange rates every time they send money to India.

The services make accessing and tracking account simple and easy. Account can be accessed and monitored in 2 ways - By logging on to www.icicibank.com to access account round the clock - Calling the 24hour toll free number from a fixed line in India

Low minimum balance of just Rs.10,000makes opening and maintaining an NRI Easy Rupee Account more convenient.

Mandate facility for loved ones in India so that they may access the account with an ATM Card, from over1910 ATMs and over 560 branches of ICICI Bank in India. Mandate holder also receives a cheque book.

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 Free International cum Debit card that gives access to 6,00,000 ATMs and over 11 million shops and merchant establishment around the globe.

2. NRO Account:The Non-Resident Ordinary Account (NRO Account) allows customers to hold the money they have earned in India such as rent, dividends, pensions etc. They can open the account and can fund it in any permissible currency and is later converted into Indian Rupees. NRO account offers attractive exchange rates upon conversion of foreign currency into Indian Rupees. This account to offers high returns and liquidity. However, the interest earned on the principal amount in the account can be sent back after the deductions of tax in India. Advantages of NRO Account: Attractive interest rates.

Free money transfers.

Easy access to the money for individuals and their family.

Free mandate facility for loved ones in India.

Free online bill payment of the utility bills in India.

3. FCNR Account:A Foreign Currency Non Resident Account (FCNR Account) allows customers to maintain funds as Term Deposits in various foreign currencies, thereby guarding customers against fluctuating exchange rates. Under this account both the principal amount and the interest can be sent back fully, and are taxable in India. The tenures range from 12 to 36 months. Advantages of FCNR Account:
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 Attractive interest rates .

Minimum deposit size is USD 1000, GBP 1000, EUR 1000 or JPY 2,00,000

Loans are available upto 85% on the deposits at attractive interest rates .

4. RFC Account:By opening a Resident Foreign Currency Account (RFC Account) customers can maintain funds as Term deposits in various foreign currencies even after they have returned to India. Both the principal and the interest can be remitted outside India. The tenures range from 1month to 36months. Advantages of RFC Account:

Attractive interest rates

Maintain accounts in 2 foreign currencies- USD & GBP

The account can opened and funded in any convertible currencies. It will be converted into one of these currencies as per the customers choice

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5.3 Awards and Recognitions

ICICI Bank ranked second in the financial services sector in Business World's ,"Most Respected Company Awards 2011" ICICI Bank was awarded The Asset Triple A Awards, Hongkong for: Best Domestic Transaction Bank (India) For 6th consecutive year won the Best Domestic Trade Finance Bank (India) Best Domestic Cash Management Bank (India) Best e-Commerce Bank (India) ICICI Bank is the only Indian brand to figure in the BrandZ Top 100 Most Valuable Global Brands Report 2011, second year in a row. ICICI Bank won the Best Local Bank Gold by Trade and Forfaiting Awards, UK

ICICI Bank ranked 5th in the list of "57 Indian Companies", and 288th in World Rankings in Forbes Global 2000 list

Ms. Chanda Kochhar, Managing Director & CEO, in the list of 25 most powerful professional women of the country , by India Today ICICI Bank has won the "Banking Technology Awards 2010" at The Indian Banks Association in the following categories: "Best Financial Inclusion Initiative" (first prize)
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 "Best Online Bank" ( runner up) "Best use of Business Intelligence" ( runner up) "Technology Bank of the year" ( runner up) ICICI Bank won the Most Admired Knowledge Enterprises (MAKE) India 2009 Award. ICICI Bank won the first place in "Maximizing Enterprise Intellectual Capital" category, October 28, 2009

ICICI Bank was one of the four Indian companies to make it to the global list of Top Companies for Leaders 2007, according to a survey conducted by Hewitt Associates in partnership with the RBL group and Fortune magazine.

ICICI Bank wins the 'Excellence in Remittance Business 2007' award by The Asian Banker

Forbes 2000 most powerful listed companies survey ranked ICICI Bank 4th among the Indian companies and 282nd globally. ICICI Bank wins the Asian Banker Award for Excellence in SME Banking 2009.

ICICI Bank was voted as the Most Trusted Brand among private sector banks in the 2010 Economic Times Brand Equity Most Trusted Brands Awards and ranked 7th in the list of the Top 50 service brands.

ICICI Bank received the 2010 World Finance UK award for:

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 Excellence in Remittance Business, Worldwide Excellence in NRI Services, Worldwide Excellence in Private Banking Business, APAC Region

For a sixth time in a row, ICICI Bank has received the Most Preferred Auto Loan Brand in the Financial Services category at the CNBC Consumer Awards.

ICICI Bank has won Gold in the Readers Digest Trusted Brands 2010 Consumer award in the Finance category for. Best Bank Best Credit Card Issuing Bank

ICICI Bank amongst the top 3 to receive the FE-EVI Green Business Leaders Award, in the banking industry.

ICICI Bank wins the Asian Banker Award for Best Banking Security System.

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6. BOARDS OF DIRECTOR & COMMITTEES

1. Board Members
Mr. K. V. Kamath, Chairman

Mr. Sridar Iyengar

Mr. Homi R. Khusrokhan

Mr. Arvind Kumar

Mr. M.S. Ramachandran

Dr. Tushaar Shah

Mr. V. Sridar

Ms. Chanda Kochhar, Managing Director & CEO

Mr. N. S. Kannan, Executive Director & CFO

Mr. K. Ramkumar, Executive Director

Mr. Rajiv Sabharwal, Executive Director

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2. Director's Profiles

Chanda Kochhar Managing Director and Chief Executive Officer

N.S. Kannan
Director & CFO

K. Ramkumar
Executive Director

Rajiv Sabharwal
Executive Director

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3. Board Committees

Audit Committee
Mr. SridarIyengar, Chairman

Mr. Homi R. Khusrokhan,

Mr. M.S.Ramachandran

Mr. V.Sridar

Board

Governance,

Remuneration

&

Nomination

Committee

Mr. SridarIyengar, Chairman

Mr. K.V.Kamath

Mr. Homi Khusrokhan

Corporate Social Responsibility Committee

Mr. M.S.Ramachandran, Chairman

Mr. Arvind Kumar

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Dr. Tushaar Shah

Ms. Chanda D. Kochhar

Customer Service Committee

Mr. K.V.Kamath, Chairman

Mr. M.S.Ramachandran

Mr. V.Sridar

Ms. Chanda D. Kochhar

Credit Committee
Mr. K.V.Kamath, Chairman

Mr. Homi R. Khusrokhan

Ms. Chanda D. Kochhar

Fraud Monitoring Committee

Mr. V.Sridar, Chairman

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Mr. K.V.Kamath

Mr. Homi R. Khusrokhan

Mr. Arvind Kumar

Ms. Chanda D. Kochhar

Mr. Rajiv Sabharwal

Risk Committee

Mr. K.V.Kamath, Chairman Mr. SridarIyengar Mr. Arvind Kumar Mr. V.Sridar Ms. Chanda D. Kochhar

Share Transfer & Shareholders'/ Investors' Grievance Committee

Mr. Homi R. Khusrokhan, Chairman Mr. V.Sridar Mr. N.S. Kannan

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7. INTRODUCTION OF ORGANISATION
We believe that the structure of an organization needs to be dynamic, constantly evolving and responsive to changes both in the external and internal environments. Our organizational structure is designed to support our business goals, and is flexible while at the same time ensuring effective control and supervision and consistency in standards across business groups. The organization structure is divided into five principal groups Retail Banking, Wholesale Banking, Project Finance & Special Assets Management, International Business and Corporate Centre. The Retail Banking Group comprises ICICI Banks retail assets business including various retail credit products, retail liabilities (including our own deposit accounts as well as distribution of third part liability products) and rural micro-banking. The Wholesale Banking Group comprises ICICI Banks corporate banking business including credit products and banking services, with separate dedicated groups for large corporate, Government and public sector entities and emerging corporate. Treasury, structured finance and credit portfolio management also form part of this group.

ICICI BANK
Retail Banking Wholesale Banking Project Finance & Special Assets Management International Business Corporate Centre

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BUSINESS REVIEW

Retail Banking:The retail business is the key driver of ICICI Banks growth strategy, with the objective of diversifying the asset portfolio and building a low-cost stable resource base. With a complete product suite across both asset and liability products as well as a wide range of banking services, ICICI Bank is today a retail financial supermarket with the ability to cross-sell the entire range of credit and investment products and other banking services to our customers. The key dimensions of our retail strategy are products, channels and processes, underpinned by a strong customer focus. Changing demographics and the trend towards upward migration in income levels coupled with existing low retail credit penetration levels have created a major growth opportunity in retail finance. ICICI Banks retail assets business is capitalizing on this opportunity with a competitive positioning and strategy comprising innovative products, wide distribution, strong credit controls and high customer service standards and rapidly growing volumes in each segment to achieve economies of scale. ICICI Banks retail portfolio (including the portfolio of ICICI Home Finance Company Limited, its wholly-owned subsidiary) at March 31, 2002 was over Rs. 76.00 billion, as compared to the combined retail portfolio of ICICI and ICICI Bank of about Rs. 29.00 billion at March 31, 2001. Our retail asset products include mortgages, automobile and two-wheeler loans, commercial vehicles and construction equipment financing, consumer durable loans, personal loans and credit cards. In the mortgages business, we expanded our reach to more than 140 locations across the country. We were the first to introduce adjustable rate home loans,
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with interest rates linked to a floating prime lending rate. This product received excellent response from customers across the country and was a key driver of growth in the mortgages segment. It also enabled us to price loans competitively and achieve better asset-liability management. Other products and product variants introduced this year included loans against existing property as well as several value-added features retail property services and home insurance policies bundled with the loan. During fiscal 2002 we emerged as a leading player in the mortgages business. During fiscal 2002 we consolidated our position as clear market leaders in automobile loans. We expanded our distribution network to 145 cities and towns across the country. The key drivers of growth were the strength of our corporate relationships with leading automobile manufacturers, strong distribution capability and customer service focus. We rapidly increased our presence in other segments as well. We expanded our two-wheeler business to over 140 locations. ICICI Bank partners manufacturers in distributing their products and therefore enjoys preferred status with them. We were able to offer competitive products to our customers by leveraging economies of scale resulting from the rapid growth in operations. In the credit cards business we expanded our distribution to 36 locations. The total number of cards in force increased by 450,000 to about 650,000 at the end of fiscal 2002. During the year we launched two co-branded cards, with Hindustan Petroleum Corporation Limited.

Corporate Banking:ICICI Banks corporate banking strategy is based on providing customized financial solutions to clients, tailored to meet their specific requirements. The corporate banking strategy focuses on careful management of credit risk and adequate return on risk capital through risk-based pricing and proactive
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portfolio management, rapid growth in fee-based services and extensive use of technology to deliver high levels of customer satisfaction in a cost effective manner. Our focus in fiscal 2002 was on expanding the range and depth of our corporate relationships, acquiring new clients and cross-selling all our corporate banking products and services to the existing client base. We continued to focus on working capital finance for highly-rated clients, structured transactions and channel financing. In longer-term loans, in the absence of traditional capital expenditure financing opportunities and limited corporate-credit growth, ICICI Bank has taken advantage of emerging opportunities in the public sector disinvestment process, through structuring and advisory services. We focused strongly on transaction banking services such as cash management and nonfund-based facilities such as letters of credit and bank guarantees to increase our market share in banking fees and commissions. We have already achieved significant success in cash management services, with total volumes of Rs. 1.72 trillion for fiscal 2002. We also targeted high value current accounts to reduce our cost of funding. We implemented a customer-level profitability-based pricing model. As the pioneers of securitization in India, we were successful in creating a market for securitized corporate debt, which would help to expand and deepen the debt markets. The enhanced capital base consequent to the merger will significantly increase ICICI Banks ability to leverage its strong corporate relationships and provide non-fund-based facilities and trade finance services to its corporate clients. ICICI Bank is leveraging technology to set up centralized processing facilities to process large transaction volumes, thereby benefiting from economies of scale. A dedicated Corporate Operations & Technology Group has been set up for developing and managing back-office processing and delivery capabilities.

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Treasury:The principal responsibilities of the Treasury include management of liquidity and exposure to market risks, mobilization of resources from domestic and international financial institutions and banks, and proprietary trading. Additionally, the Treasury is leveraging its strong relationships with financial sector players to provide a wide range of banking services in addition to its liability products. The Treasury is also responsible for ICICI Banks capital markets and custodial services operations. During fiscal 2002, the focus was on the challenge of meeting regulatory reserve requirements on ICICIs liabilities prior to the merger. This posed the dual challenge of raising resources for meeting the reserve requirements and managing the interest-rate risk arising from the acquisition of Government securities aggregating about Rs. 180.00 billion in an environment of low interest rates. Yields on Government securities reached historic lows during 2001- 2002 as a consequence of the easy liquidity environment and RBIs soft-interest-rate policy.

Project Finance and Special Assets:Our project finance activities include financing new projects as well as capacity additions in the manufacturing sector and structured finance to the infrastructure and oil, gas and petrochemicals sectors. Over the years, we have developed considerable expertise in financing complex project finance transactions and effectively allocating the associated risks. Our presence has been viewed by most sponsors as critical to the success of their projects, on account of our proficiency in developing enforceable contract models, syndicating requisite funds and working out complex issues related to Government regulations. Our project finance business is focused on structuring and syndication of financing for large projects by leveraging our expertise in project financing, and churning
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our project finance portfolio to prevent portfolio concentration and to manage portfolio risk. We view our role not only as providers of project finance but as arrangers and facilitators, creating appropriate financing structures that may serve as financing and investment vehicles for a wider range of market participants.

Infrastructure Sector:The infrastructure sector has not witnessed the anticipated growth, mainly due to policy-level issues and delay in closure of various projects. While there were few opportunities in the power sector, the telecom and road sectors witnessed considerable activity. Guarantees to Department of Telecommunications on behalf of various telecom companies for basic, cellular and national and international long-distance licenses presented a significant non-fund based business opportunity. We have also capitalized on opportunities in the road sector, in both annuity and toll-based projects, including lead arranger mandates for four road projects of National Highway Authority of India (NHAI). The pace of growth in the road sector is expected to increase both due to NHAIs National Highway Development Programmed and the larger state-level projects. Going forward, we expect ports and urban infrastructure sectors, in addition to telecom and roads, to provide significant business opportunities. Corporatization has already been initiated for five out of twelve major ports. Ports would also require significant expansion and modernization of facilities. We were appointed lead arrangers for a chemical port terminal project. The power sector is also expected to pick up with opportunities in the privatization of distribution, financial closure of select private projects with competitive tariffs, capacity additions in the public sector and its own reform and restructuring. We provided advisory services to the Ministry of Power,
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developing a comprehensive blueprint for private sector participation in hydropower. The Managing Director & CEO was a member of the Distribution Policy committee which submitted a report improving efficiency in power distribution in the country.

Manufacturing Sector:Fiscal 2002 saw few new projects in the manufacturing sector on account of lower economic growth and existing over-capacities in several commodities. Our focus in this sector is on projects sponsored by entities that have proven ability to commit the required financial resources and implement projects successfully within planned time-frames. We are also implementing tighter security measures, such as security interests in project contracts and escrow accounts to capture cash flows. We also believe that there is significant scope for consolidation in several segments in the manufacturing sector, which presents opportunities for structuring and syndicating acquisition financing.

Special Assets Management:Liberalization and integration with the global economy have posed major competitive challenges for Indian industry. Cyclical downturns in commodity demand and prices have adversely affected the performance of several sectors. This has impacted asset quality in the financial system. ICICI Banks efforts at asset resolution are driven by the Special Assets Management Group (SAMG), set up to manage large non-performing loans and large accounts under watch that require close monitoring. In case of exposures to essentially viable companies. SAMGs approach includes operational and financial restructuring, completion of projects under implementation, sale of unproductive assets and
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catalyzing consolidation. In respect of exposures to unviable and essentially uneconomical projects, we adopt an aggressive approach aimed at out-of-court settlements, enforcing collateral and driving consolidation. The accent is on time-value of recovery and a pragmatic approach towards settlements. During fiscal 2002, SAMG was strengthened by the induction of some of our highestrated performers into the group.

International Business:-We have already established a presence in the

international markets, primarily in the areas of information technology, investment banking and banking products and services for the Non-Resident Indian (NRI) community. We believe that the international markets present a major growth opportunity and have therefore expanded the range of our international business initiatives. The International Business Group was set up in fiscal 2002 to develop and implement a focused strategy for the international business.

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The international business strategy is based on leveraging home country links for international expansion by capturing market share in select international markets. The critical strengths, which can be leveraged to create value, include strong relationships with domestic corporates, preferential access to local currency markets, strong domestic distribution network and cultural ties with the home country. The initial focus areas would be supporting Indian companies in raising corporate and project finance for their investments abroad, trade finance, personal financial services for NRIs and international alliances to support domestic businesses.

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8. GROUP OF ICICI
ICICI Group 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 group companies, subsidiaries and affiliates in the areas of personal banking, investment banking, life and general insurance, venture capital and asset management. With a strong customer focus, the ICICI Group Companies have maintained and enhanced their leadership position in their respective sectors.

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A) ICICI Bank
ICICI Bank is India's second-largest bank with total assets of Rs. 3,793.01 billion (US$ 75 billion) at March 31, 2009 and profit after tax Rs. 37.58 billion for the year ended March 31, 2009. The Bank has a network of 1,451 branches and about 4,721 ATMs in India and presence in 18 countries.

AWARDS ICICI Bank has won Gold in the Readers Digest Trusted Brands 2010 Consumer award in the Finance category for A) Best Bank and B) Best Credit Card Issuing Bank.

B) ICICI Prudential Life Insurance

Company is a 74:26 joint venture with Prudential plc (UK). It is the largest private sector life insurance company offering a comprehensive suite of life, health and pensions products. It is also the pioneer in launching innovative health care products like Diabetes Care Active and health Saver. The company operates on a multi-channel platform and has a distribution strength of over 2,76,000 financial advisors operating from more than 2000 branches spread across 1800 locations across the country. In addition to the agency force, it also has tie-ups with various banks, corporate agents and brokers. In fiscal 2009, ICICI Prudential attained a market share of 10.9% based on retail weighted premium and garnered a total premium of Rs 153.56 billion registering a growth of 13% and held assets of Rs. 327.88 billion as on March 31, 2009. AWARDS ICICI Prudential Life Insurance awarded India's Most Customer Responsive Insurance Company. AGC Networks - Economic Times, Customer Responsiveness Awards, 2010.

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C) ICICI Lombard General Insurance Company

A joint venture with the Canada based Fairfax Financial Holdings, is the largest private sector general insurance company. It has a comprehensive product portfolio catering to all corporate and retail insurance needs and is present in over 300 locations across the country. ICICI Lombard General Insurance has achieved a market share of 27.2% among private sector general insurance companies and an overall market share of 11.2% during fiscal 2009. The gross return premium grew by 2.2% from Rs. 33.45 billion in fiscal 2008 to 34.20 billion in fiscal 2009.

AWARDS ICICI Lombard awarded 'Most Preferred General Insurance Brand' at CNBC Awaaz Consumer Awards 2010.

D) ICICI Securities Ltd

ICICI Securities ltd. is the largest equity house in the country providing end-toend solutions (including web-based services) through the largest non-banking distribution channel so as to fulfill all the diverse needs of retail and corporate customers. ICICI Securities (I-Sec) has a dominant position in its core segments of its operations - Corporate Finance including Equity Capital Markets Advisory Services, Institutional Equities, Retail and Financial Product Distribution. ICICI Securities Ltd is an integrated securities firm offering a wide range of services including investment banking, institutional broking, retail broking, private wealth management, and financial product distribution. ICICI Securities sees its role as 'Creating Informed Access to the Wealth of the Nation' for its diversified set of client that include corporate, financial institutions, high net-worth individuals and retail investors. Headquartered in Mumbai, ICICI Securities operates out of 66 cities and towns in India and global offices in Singapore and New York.

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ICICI Securities Inc., the step down wholly owned US subsidiary of the company is a member of the Financial Industry Regulatory Authority (FINRA) / Securities Investors Protection Corporation (SIPC). ICICI Securities Inc. activities include Dealing in Securities and Corporate Advisory Services in the United States. ICICI Securities Inc. is also registered with the Monetary Authority of Singapore (MAS)and operates a branch office in Singapore.

MANAGEMENT TEAM
Anup Bagchi is MD & CEO at ICICI Securities Ltd. Mr.Bagchi will spearhead the company's initiatives in Corporate Finance which includes Equity Capital Markets Advisory Services, and Institutional Equities; Retail Equities which includes ICICIdirect.com, one of the largest players in the internet brokerage space and Financial. Ajay Saraf is the Executive Director and Head of Corporate Finance and Institutional Equities at ICICI Securities. As Chief Financial Officer & Head-SFG, Mr Charanjit Attra is in charge of all strategic financial activities, business planning, forecasting and analysis, management systems, setting up the internal control framework, & management of all operating funds containing working capital of the company.

Corporate citizen
The social initiatives programme of ICICI Securities has over the years focused mainly on two areas: providing education and health to the poor and marginalized children from our society. Under the aegis of ICICI Foundation, ICICI Securities provides both financial and volunteering support to the following two organisations:

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Door Step School - One of the most long standing associations has been with Door Step, a NGO focused on spreading education to children residing in the slums. The Colaba Municipal School, which is managed by the Mumbai Municipal Corporation along with Door Step, was adopted by ICICI Securities in 2004. The firm not only provides funds for hiring teachers, books and other educational needs but also encourages its employees to spend some quality time with the children through various activities like Diya making during Diwali or playing a cricket match with the children. Muktangan - ICICI Securities has also adopted the pre-primary section of a municipal school in Lower Parel, Mumbai. This school is run by the Paragon Charitable Trust through their CSO called Muktangan. Managed in collaboration with the Brihanmumbai Municipal Corporation (BMC), Muktangan conducts its classes in English. ICICI Securities supports this educational programme that offers alternatives to orthodox educational practices.

RETAIL BUSINESS
ICICI Securities empowers over 2 million Indians to seamlessly access the capital market with ICICIdirect.com, an award winning and pioneering online broking platform. The platform not only offers convenient ways to invest in Equity, Derivatives, Currency Futures, Mutual Funds but also other services Fixed Deposits, Loans, Tax Services, New Pension Systems and Insurance are available. ICICIdirect.com offers a convenient and easy to use platform to invest in equity and various other financial products using its unique 3-in-1 account which integrates customer's saving, trading and demat accounts. Apart from convenience, ICICIdirect.com also offers access to comprehensive research information, stock picks and mutual fund recommendations among other offerings. Tailored services and trading strategies are available to different types of customers; long term investors, day traders, high-volume traders and derivatives traders to name some.

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ICICIdirect.com uses the most advanced commercially available 128-bit encryption technology enabled Secure Socket Layer (SSL), to ensure that the information transmitted between the client and ICICIdirect.com across the internet is safe and cannot be accessed by any third party. ICICIdirect.com is the first broker in India to introduce `Digitally Signed Contract Note' to its customers. As a result, the process of generating contract notes has been automated and the same would be instantly available to its customers in a safe and secure manner through the website.

DISTRIBUTION CHANNELS
ICICI Securities has set-up neighbor hood financial stores which offer a variety of financial products and services under one roof. It is a one-stop shop that facilitates existing and potential customers to speak to our team and understand their financial plans and goals. ICICI Securities has 250 stores across 66 cities in India. Another unique concept called the ICICIdirect Money Kitchen, was launched in late 2009. An extension of the superstore model, the money kitchen is an innovative financial store where visitors can create their profiles to not only analyze their investment strategy by using various financial tools but also monitor it from time-to-time. To enable our customers to maximize their returns and plan for their future, ICICIdirect has also started financial planning services at these stores. Customized financial plans can be created for our customers by dedicated Relationship Managers who will understand the customer's requirements and future goals. Based on this information, the Relationship Manager works on creating a comprehensive and easy-to-read financial plan. This enables ICICIdirect to move from just a transactional based relationship to a meaningful and valueadded long-term relationship with our customers. ICICIdirect?s services and offerings evolves according to the customer's ever changing requirements and goals. Customers can walk-in to the financial superstores for products like ICICIdirect 3-in-1 online trading account, equities, mutual funds, IPO, Life and General insurance, Fixed Deposits and many other financial products. The stores also conduct periodic training sessions on markets and demo sessions of the trading website.
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Competitor of ICICI Securities 1. Sharekhan 2. Indiabulls Securities 3. 5Paisa 4. Motilal Oswal Securities 5. HDFC Securities 6. Reliance Money 7. IDBIPaisaBuilder 8. Religare 9. Geojit 10. Networth Stock Broking 11. Kotak Securities 12. Standard Chartered 13. Angel Trade 14. HSBC InvestDirect 15. Comfort Securities 16. Just Trade

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RESEARCH
ICICI Securities understands the need for insightful research to make the right investment decision. An independent equity research team provides strong and timely updates to ensure that customer can avail of market opportunities. The research team focuses on both large cap as well as small and mid-cap. Large cap companies provide an overview of industry environments, while small and mid-cap companies are chosen 'bottom-up', providing a unique perspective to a generally under-researched end of the market. The focus is on identifying companies, which we believe are likely to generate wealth for investors on a sustained basis through in-depth fundamental research. We cater to the entire gamut of investment and return horizon requirements of an investor through our flagship offerings like Detailed Company Report, Pick of the Week, Model Portfolio, Stock on the Move, Daily & Weekly derivatives, Intra-day calls, Daily, Weekly & Monthly Technicals with a regular update on the performance of our calls.

WEALTH MANAGEMENT
The Wealth Management Group is a team of specialists who offer specific advisory services to meet both personal and business wealth requirements of HNIs. The team creates customized strategies to meet Customer's investment goals of wealth accumulation, wealth preservation and liquidity. In addition to mutual funds, fixed deposits and other traditional products, we also offer alternate investment avenues of Private Equity, Structured / Customized products for investors with specific views on the markets and Portfolio Protection Strategies for large investors. The attempt is to bring world class investment products to our customers through over 15 centres of ICICIdirect.

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E) ICICI Securities Primary Dealership Limited

ICICI Securities Primary Dealership Limited is the largest Primary Dealer in Government Securities. It is an acknowledged leader in the Indian fixed income and money markets, with a strong franchise across the spectrum of interest rate products and services - institutional sales and trading, resource mobilisation, portfolio management services and research. One of the first entities to be granted Primary Dealership license by RBI, I-Sec PD has made pioneering contributions since inception to debt market development in India. I-Sec PD is also credited with pioneering debt market research in India. I-Sec PD has been

recognised as the 'Best Domestic Bond House in India' by Asia money every year from 2002 to 2007 and selected as 'Best Bond House' by
Financeasia.com for the years - 2001, 2004 to 2007 and 2009."

F) ICICI Prudential Asset Management

ICICI Prudential Asset Management is the third largest mutual fund with average asset under management of Rs. 514.33 billion and a market share of 10.43% as on March 31, 2009. The Company manages a comprehensive range of mutual fund schemes and portfolio management services to meet the varying investment needs of its investors through162 branches and 185 CAMS official point of transaction acceptance spread across the country.

G) ICICI Venture
ICICI Venture is one of the largest and most successful private equity firms in India with funds under management in excess of USD 2 billion. ICICI Venture, over the years has built an enviable portfolio of companies across sectors including Life Sciences, Information Technology, Media, Manufacturing, Retail, Financial Services, and Real Estate thereby building sustainable value. It has several firsts to its credit in the Indian Private Equity industry. Amongst them are Indias first leveraged buyout (Infomedia), the first real estate investment (Cyber Gateway), the first mezzanine financing for a acquisition (Arch Pharmalabs), the first royalty-based structured deal in Pharma Research & Development (Dr Reddys Laboratories - JV) and the first fund level secondary transaction (Coller Capital).

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9.CORPORATE SOCIAL RESPONSIBILITY

For over five decades, the ICICI Group has partnered India in its economic growth and development. Promoting inclusive growth has been a priority area for the Group from both a social and business perspective. We strive to make a difference to our customers, to the society and to the nations development directly through our products and services, as well as through our development initiatives and community outreach. ICICI Foundation for Inclusive Growth (ICICI Foundation) was founded by the ICICI Group in early 2008 to carry forward and build upon its legacy of promoting inclusive growth. ICICI Foundation works with government authorities and specialised grassroots organisations to support developmental work in four identified focus areas. It is committed to investing in long-term efforts to support inclusive growth through effective interventions. Vision Our vision is a world free of poverty in which every individual has the freedom and power to create and sustain a just society in which to live.

Mission Our mission is to empower the poor to participate in and benefit from the Indian growth process through integrated action in the fields of primary health, elementary education, financial inclusion and sustainable livelihood. This will be achieved through active collaboration with the government and independent organisations.

Our History ICICI Banks Social Initiatives Group (SIG), a non-profit group set up within ICICI Bank in 2000, pioneered our work on health, education and access to finance. In January 2008, ICICI Group established ICICI Foundation for Inclusive Growth, which carries forward this legacy.

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SOCIAL INITIATIVES GROUP (SIG):ICICI Bank's social sector initiatives aim to resolve some of the most fundamental developmental problems facing India today. Its involvement is primarily in terms of non-commercial support to fill knowledge and practice gaps in specific thematic areas Early Child Health, Elementary Education and Micro Financial Services. SIG interactive platform that seeks to:

Bring together participants in the development process to widen and deepen the discourse informing development practice. Interactive features include discussion boards and facilities to post papers, articles or other resources. Publish research related to innovations and significant problems within the identified thematic areas.

MISSION STATEMENT OF SIG:The mission statement of the SIG is "to identify and support initiatives designed to improve the capacities of the poorest of the poor to participate in the larger economy". The SIG believes that the three fundamental capacities any individual should possess to be able to participate in the larger economy are in the areas of health, education and access to basic financial services. Within these broad areas, infant health at birth, elementary education and micro financial services define the areas in which the SIGs work focuses. At a very basic level, the programmes and projects supported by the SIG are required to cater to the poorest. They should enable them to become active and informed participants in socio-economic processes as opposed to passive observers. These initiatives must be output oriented, with a focus on producing measurable outcomes that meet a minimum quality requirement. The initiatives also need to be cost-effective. This is in recognition of the fact that resources are limited and their efficient use is imperative if the maximum number is to benefit. Cost-effectiveness also facilitates the adoption of the initiative in other contexts.

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The initiative must be scalable. Scalability implies the ability to draw upon important elements of a programme and adapt them to suit the needs of a specific situation. It should be possible to do so at a national level. Even if the programme itself is not directly scaleable, it should be possible to take away significant lessons from it in order to enrich work in other settings. All supported initiatives should have the potential for both near and long-term impact. Consequentially, it is important that the impact of these programmes, in the near and long term, be carefully understood and analyzed in a rigorous manner and not through anecdotes. It is critical to clearly understand how an initiative is performing in terms of its predetermined goals and in comparison to alternatives. There is little doubt that a complex of factors, very often beyond the control of the programme/organization, will influence the outcome. Yet, serious and regular impact analysis can only make the programme richer and is essential. The SIG assigns greater value to programmes/organizations that carefully examine the short-term and long-term implications of their actions. In pursuit of its goals in the three focus areas, the SIG tends to support reasonably large-sized initiatives so that issues such as cost-effectiveness, scalability and impact assessment can be dealt with more directly. These initiatives not only have the potential to provide key research inputs to other programmes, but also tend to have a large impact that benefits the communities they work with. The approach of the SIG may thus be characterized more broadly as action research, to distinguish it from pure academic research. However, in its research work and impact assessment, the SIG seeks to adhere to the highest standards of academic rigour. It often works in partnership with academic institutions such as Institute of Rural Management Anand, KEM, Massachusetts Institute of Technology, Tata Institute of Social Sciences, University of California, Berkeley and the University of Southampton. It is crucial that the programmes supported by SIG be time-bound. This lends clarity to the aim of the programme and prevents its intent from getting diluted over time. The SIG works by identifying gaps in knowledge and practice in its focus areas and locating initiatives that address these gaps in a manner consistent with the SIGs mission. The identification of research needs is followed by an in-depth analysis of the short-term and long-term implications of various forms of action.
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Among other things, this requires taking a comprehensive overview of work already done in the country and outside. The SIG, thus, seeks to answer certain fundamental questions in its focus areas through the projects it supports and, thereby, contribute to findings that help the sector. It should be pointed out that the SIG does not function as a rollout agency. An important feature of the SIGs strategy is the belief in strengthening or supplementing existing systems, rather than investing in parallel structures. Another key element of its strategy is the building of long-term relationships with suitable partners. As part of this effort, the SIG works actively to improve the efficacy of these partners and ensure sustained impact. In pursuit of its goals, the SIG seeks to work actively with research agencies, Non-Governmental Organisations (NGOs), Corporates, Government departments, local stakeholders and international organisations. It should also be noted that the group believes modern technologies, particularly Information and Communication Technologies (ICT) can prove to be important facilitators if used appropriately.

FOCUS AREAS OF SIG:The SIG has three focus areas:

Early Child Health Elementary Education Micro Financial Services

A) Health: Early Child Health

This focus seems to have the potential for maximum long and short-term impact and appears achievable in the most cost-effective and therefore scaleable manner. ICICI Bank aims to improve individual capacity by impacting two important indicators of chronic under nutrition in the first three years at the national level:

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Proportion of babies born with a birth weight of less than 2.5 kg at or beyond 37 weeks of gestation (Intra-Uterine Growth retardation, IUGR)

Proportion of children under three years who are stunted.

B) Education: Elementary Education

Education (and not just literacy) up to the elementary level seems to be almost a necessary condition for any individual (rich or poor) to be able to participate in any manner in the larger economy Here the goal is to work towards the universalisation of elementary education all across India, rural and urban, with a substantial difference being made by 2010. The goal focuses on retention in school and learning achieved.

C) Money: Micro Financial Services

These services would include basic banking (savings and cash management), finance (debt and equity), insurance (life and health) and derivatives. The goal here is to facilitate universal access to these four services by the year 2011. In addition to its core areas of focus, the SIG, in a limited manner, supports some other initiatives:

a) Non-governmental Organization (NGO) Capacity Building

This is supported through the GIVE (Giving Impetus to Voluntary Effort) Foundation. It seeks to provide a variety of services to NGOs listed including facilitating the receipt of donations online (Give Online), sale of NGO products (Shop Online), volunteering of time and skills (Volunteer Online) and news (News Online).

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B) Modernization of the Indian Financial System

This involves encouraging appropriate research and institution building efforts on a national basis. It is a virtual non-profit research centre that acts as a platform to address and encourage debate, and develop a non-partisan opinion on various issues of concern and interest in financial economics relating to emerging markets. ICICI Bank has supported the development of various financial institutions such as the National Stock Exchange and the Bombay Stock Exchange. It has also supported the Institute for Financial Management and Research, Chennai. The changed economic climate in India, with a growing emphasis on the market, has hastened the need for an informed and participatory socio-economic order. As one of the largest players in the economic landscape of the country, ICICI Bank believes that its involvement in the commercial sector must be backed by a simultaneous commitment in the social sector. This is particularly so if any of the larger goals of economic liberalisation in India, and of its players, is to be brought to fruition. ICICI Bank seeks to perform its role in the social sector through a dedicated not-for-profit group, the Social Initiatives Group (SIG).

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10. RESEARCH METHODOLOGY

MEANING OF RESEARCH
Research in common parlance refers to a search for knowledge. Once can also define research a scientific and systematic search for pertinent information on a specific topic. In fact, research is an art of scientific investigation. The Advanced Learners Dictionary of Current English lays down the meaning of research as a careful investigation or inquiry specially through search for new facts in any branch of knowledge. Some people consider research as a movement, a movement from the known to the unknown. It is actually a voyage of discovery. We all possess the vital instinct of inquisitiveness for, when the unknown confronts us, we wonder and our inquisitiveness makes us probe and attain full and fuller understanding of the unknown. This inquisitiveness is the mother of all knowledge and the method, which man employs for obtaining the knowledge of whatever the unknown, can be termed as research. Research is an academic activity and as such the term should be used in a technical sense. According to Clifford Woody research comprises defining and redefining problems, formulating hypothesis or suggested solutions; collecting, organising and evaluating data; making deductions and reaching conclusions; and at last carefully testing the conclusions to determine whether they fit the formulating hypothesis. D. Slesinger and M. Stephenson in the Encyclopaedia of Social Sciences define research as the manipulation of things, concepts or symbols for the purpose of generalising to extend, correct or verify knowledge, whether that knowledge aids in construction of theory or in the practice of an art.

OBJECTIVES OF RESEARCH
The purpose of research is to discover answers to questions through the application of scientific procedures. The main aim of research is to find out the truth which is hidden and which has not been discovered as yet. Though each
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research study has its own specific purpose, we may think of research objectives as falling into a number of following broad groupings: 1. To gain familiarity with a phenomenon or to achieve new insights into it (studies with this object in view are termed as exploratory or formulative research studies); 2. To portray accurately the characteristics of a particular individual, situation or a group (studies with this object in view are known as descriptive research studies); 3. To determine the frequency with which something occurs or with which it is associated with something else (studies with this object in view are known as diagnostic research studies); 4. To test a hypothesis of a causal relationship between variables (such studies are known as hypothesis-testing research studies).

TYPES OF RESEARCH
The basic types of research are as follows:

(i) Descriptive vs. Analytical (ii) Applied vs. Fundamental (iii) Quantitative vs. Qualitative (iv) Conceptual vs. Empirical

(i) Descriptive vs. Analytical: Descriptive research includes surveys and factfinding enquiries of different kinds. The major purpose of descriptive research is description of the state of affairs as it exists at present. In social science and business research we quite often use Research Methodology: An Introduction the term Ex post facto research for descriptive research studies. The main characteristic of this method is that the researcher has no control over the variables; he can only report what has happened or what is happening. Most ex post facto research projects are used for descriptive studies in which the
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researcher seeks to measure such items as, for example, frequency of shopping, preferences of people, or similar data. Ex post facto studies also include attempts by researchers to discover causes even when they cannot control the variables. The methods of research utilized in descriptive research are survey methods of all kinds, including comparative and correlational methods. In analytical research, on the other hand, the researcher has to use facts or information already available, and analyze these to make a critical evaluation of the material.

(ii) Applied vs. Fundamental: Research can either be applied (or action) research or fundamental (to basic or pure) research. Applied research aims at finding a solution for an immediate problem facing a society or an industrial/business organisation, whereas fundamental research is mainly concerned with generalisations and with the formulation of a theory. Gathering knowledge for knowledges sake is termed pure or basic research. Research concerning some natural phenomenon or relating to pure mathematics are examples of fundamental research. Similarly, research studies, concerning human behaviour carried on with a view to make generalisations about human behaviour, are also examples of fundamental research, but research aimed at certain conclusions (say, a solution) facing a concrete social or business problem is an example of applied research. Research to identify social, economic or political trends that may affect a particular institution or the copy research (research to find out whether certain communications will be read and understood) or the marketing research or evaluation research are examples of applied research. Thus, the central aim of applied research is to discover a solution for some pressing practical problem, whereas basic research is directed towards finding information that has a broad base of applications and thus, adds to the already existing organized body of scientific knowledge.

(iii) Quantitative vs. Qualitative: Quantitative research is based on the measurement of quantity or amount. It is applicable to phenomena that can be expressed in terms of quantity. Qualitative research, on the other hand, is concerned with qualitative phenomenon, i.e., phenomena relating to or involving quality or kind. For instance, when we are interested in investigating the reasons for human
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behaviour (i.e., why people think or do certain things), we quite often talk of Motivation Research, an important type of qualitative research. This type of research aims at discovering the underlying motives and desires, using in depth interviews for the purpose. Other techniques of such research are word association tests, sentence completion tests, story completion tests and similar other projective techniques. Attitude or opinion research i.e., research designed to find out how people feel or what they think about a particular subject or institution is also qualitative research. Qualitative research is specially important in the behavioural sciences where the aim is to discover the underlying motives of human behaviour. Through such research we can analyse the various factors which motivate people to behave in a particular manner or which make people like or dislike a particular thing. It may be stated, however, that to apply qualitative research in practice is relatively a difficult job and therefore, while doing such research, one should seek guidance from experimental psychologists.

(iv) Conceptual vs. Empirical: Conceptual research is that related to some abstract idea(s) or theory. It is generally used by philosophers and thinkers to develop new concepts or to reinterpret existing ones. On the other hand, empirical research relies on experience or observation alone, often without due regard for system and theory. It is data-based research, coming up with conclusions which are capable of being verified by observation or experiment. We can also call it as experimental type of research. In such a research it is necessary to get at facts firsthand, at their source, and actively to go about doing certain things to stimulate the production of desired information. In such a research, the researcher must first provide himself with a working hypothesis or guess as to the probable results. He then works to get enough facts (data) to prove or disprove his hypothesis. He then sets up experimental designs which he thinks will manipulate the persons or the materials concerned so as to bring forth the desired information. Such research is thus characterised by the experimenters control over the variables under study and his deliberate manipulation of one of them to study its effects. Empirical research is appropriate when proof is sought that certain variables affect other variables in some way. Evidence gathered through experiments or empirical studies is today considered to be the most powerful support possible for a given hypothesis.
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(v) Some Other Types of Research: All other types of research are variations of one or more of the above stated approaches, based on either the purpose of research, or the time required to accomplish research, on the environment in which research is done, or on the basis of some other similar factor. Form the point of view of time, we can think of research either as one-time research or longitudinal research. In the former case the research is confined to a single time-period, whereas in the latter case the research is carried on over several time-periods. Research can be field-setting research or laboratory research or simulation research, depending upon the environment in which it is to be carried out. Research can as well be understood as clinical or diagnostic research. Such research follow case-study methods or indepth approaches to reach the basic causal relations. Such studies usually go deep into the causes of things or events that interest us, using very small samples and very deep probing data gathering devices. The research may be exploratory or it may be formalized. The objective of exploratory research is the development of hypotheses rather than their testing, whereas formalized research studies are those with substantial structure and with specific hypotheses to be tested. Historical research is that which utilizes historical sources like documents, remains, etc. to study events or ideas of the past, including the philosophy of persons and groups at any remote point of time. Research can also be classified as conclusion-oriented and decision-oriented. While doing conclusion oriented research, a researcher is free to pick up a problem, redesign the enquiry as he proceeds and is prepared to conceptualize as he wishes. Decision-oriented research is always for the need of a decision maker and the researcher in this case is not free to embark upon research according to his own inclination. Operations research is an example of decision oriented research since it is a scientific method of providing executive departments with a quantitative basis for decisions regarding operations under their control.

Research Methodology
The system of collecting data for research projects is known as research methodology. The data may be collected for either theoretical or practical research for example management research may be strategically conceptualized along with operational planning methods and change management.

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Some important factors in research methodology include validity of research data, Ethics and the reliability of measures most of your work is finished by the time you finish the analysis of your data. Formulating of research questions along with sampling weather probable or non probable is followed by measurement that includes surveys and scaling. This is followed by research design, which may be either experimental or quasiexperimental. The last two stages are data analysis and finally writing the research paper, which is organised carefully into graphs and tables so that only important relevant data is shown.

Data collection

Data collection depends on the research design (quantitative or qualitative design). Tutors India helps in a survey tool validation and also online and face to face data collection process. We help you to conduct surveys [in person Interviews: Formal to informal; structured to unstructured; focus group discussion, observations, selfadministered questionnaire, diaries, citizen report cards, Delphi techniques, expert judgement, online surveys, secondary sources such as journals, newspaper articles, annual reports, government sources such as census, budgets, policies, procedures, etc.

Quantitative consulting
The prepration of a sucessful dissertation involves conducting effective research, analysing data and results presentation all which require a high level of statistcal expertise. We at statswork provides solution from formulating methodology to the results presentation. You can approach statswork with any or all of the following steps:

Framing your Research Methodology Study design Sample size calculation and justification Development of questionnaire Statistical techniques

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Appropriate selection of statistical tools (parametric and non-parametric) depends on the study design and sample size. The following are some of the statistical tools used by our expertise..

Exlportary data analysis T-test, ANOVA, ANCOVA Chi-square Linear regression Dichotomous logistic regression Ordinal logistic regression Multinomial logistic regression Quantile regression Poisson regression Survival analysis LogLinear models Factor analysis Principal component analysis Multidimensional scaling Forecasting Decision Tree Neural Network Cluster analysis Multiple imputation An extensive array of graphical procedures

Qualitative Analysis
Understanding some aspects of social life and its methods through text rather than numbers, as data for analysis. Although there are criticism for such methodology, you need such methdology that the survey can't answer very well. Research methodology is a way to systematically solve the research problem. It may be understood as a science of studying how research is done scientifically. In it we study the various steps that are generally adopted by a researcher in studying his research problem along with the logic behind them. It is necessary for the researcher to know not only the research methods/techniques but also the methodology. Researchers not only need to know how to develop certain indices or tests, how to calculate the mean, the mode, the median or the standard deviation or chi-square, how to apply particular research techniques, but they also need to know which of these methods or techniques, are relevant and which are not, and what would they mean and indicate and why. Researchers also need
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to understand the assumptions underlying various techniques and they need to know the criteria by which they can decide that certain techniques and procedures will be applicable to certain problems and others will not. All this means that it is necessary for the researcher to design his methodology for his problem as the same may differ from problem to problem. For example, an architect, who designs a building, has to consciously evaluate the basis of his decisions, i.e., he has to evaluate why and on what basis he selects particular size, number and location of doors, windows and ventilators, uses particular materials and not others and the like. Similarly, in research the scientist has to expose the research decisions to evaluation before they are implemented. He has to specify very clearly and precisely what decisions he selects and why he selects them so that they can be evaluated by others also. From what has been stated above, we can say that research methodology has many dimensions and research methods do constitute a part of the research methodology. The scope of research methodology is wider than that of research methods. Thus, when we talk of research methodology we not only talk of the research methods but also consider the logic behind the methods we use in the context of our research study and explain why we are using a particular method or technique and why we are not using others so that research results are capable of being evaluated either by the researcher himself or by others. Why a research study has been undertaken, how the research problem has been defined, in what way and why the hypothesis has been formulated, what data have been collected and what particular method has been adopted, why particular technique of analysing data has been used and a host of similar other questions are usually answered when we talk of research methodology concerning a research problem or study. Primary Data: The data consisted of Information collected with the help of Questionnaire for analyzing Bank@home service. Sample size of which was 200 existing customers. Personal interview was done with the walk interview. Observation method was used for understanding various products and their features and understanding the 5 S Philosophy

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Limitations: Paucity of time Concentrating on the happenings on specific branch and not on the bank policies on a whole. Secondary Data: Was collected from internet and intranet within the company for Understanding the product and the features. Understanding the functioning of Bank@home. Obtaining the documents for Corporate Boxes. Information collected form guidance of superior managers to understand the RBD process

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11.CREDIT RATING
During the year, ICICI became the first Indian company to be rated higher than the sovereign rating for India by Moodys Investor Service, when its senior and subordinated long term foreign currency debt was rated Ba1 i.e. one notch above the sovereign rating for India. The same rating has been assigned to ICICI Bank post-merger. ICICI Banks credit ratings as per various credit rating agencies (including ratings assigned to debt instruments issued by ICICI now transferred to ICICI Bank on merger) are given below: AGENCY REATING Moodys Investor Service (Moodys)

Foreign currency debt .....................................................Ba1 Foreign currency deposits ...............................................Ba3

Standard & Poors (S&P) .................................................... BB Credit Analysis & Research Limited (CARE) ............... CARE ..AAA

Investment Information and Credit Rating Agency (ICRA) ..................... LAAA

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12. RISK MANAGEMENT

Risk is an integral part of the banking business. The delivery of superior shareholder value depends on achieving an appropriate trade-off between risk and returns. ICICI Bank is exposed to specific risks that are particular to its businesses and the environment within which it operates, including credit risk, market risk and operational risk. Our risk management strategy is based on a clear understanding of various risks, disciplined risk assessment and measurement procedures and continuous monitoring. The policies and procedures established for this purpose are continuously benchmarked with international best practices. The Risk, Compliance & Audit Group is responsible for assessment, management and mitigation of risk in ICICI Bank. This group forms part of the Corporate Centre, is completely independent of all business operations and is accountable to the Audit Committee of the Board of Directors. The group is organized into six sub-groups: Credit Risk Rating & Industry Analysis, Credit Policies & Credit Audit, Risk Analytics, Internal Audit, Subsidiaries Audit and Retail Risk.

A) Credit Risk
Credit risk is the risk that a borrower is unable to meet its financial obligations to the lender, ICICI Bank. ICICI Bank measures, monitors and manages credit risk for each borrower and also at the portfolio level. ICICI Bank has a standardized credit approval process, which includes a well-established procedure of comprehensive credit appraisal and rating. The credit rating for every borrower is reviewed at least annually and for higher risk credits and large exposures typically on a quarterly basis. ICICI Bank also reviews the ratings of all borrowers in a particular industry, upon the occurrence of any significant event impacting the industry.
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B) Market Risk
Market risk is the exposure to loss resulting from changes in interest rates, foreign currency exchange rates, equity prices and commodity prices. ICICI Banks market risk arises principally from interest-rate risk. ICICI Banks exposure to market risk is a function of its asset and liability management activities, trading activities and its role as a financial intermediary in customerrelated transactions. The objective of market risk management is to effectively manage exposure of earnings and equity to losses and to reduce the volatility inherent in financial instruments. Interest-rate risk is measured through the use of re-pricing gap analysis and duration analysis. Market risk is managed within an overall asset-liability framework approved by the Asset- Liability Management Committee (ALCO) of the Board of Directors. Its role encompasses stipulating liquidity and interest-rate risk limits, monitoring market-risk levels by adherence to set limits, articulating the organizations interest rate view and determining business strategy, in the light of the current and expected business environment. ICICI Bank proactively manages market risk through the re-pricing profile of incremental assets and liabilities and also uses the rupee interest rate derivatives market in India, to the extent feasible, to actively manage asset and liability positions. ICICI Bank ensures adequate liquidity at all times through systematic funds planning and maintenance of liquid investments, as well as by focusing on more stable funding sources such as retail deposits. The Risk, Compliance & Audit Group formulates market risk management policy and monitors market risk on an ongoing basis. The asset-liability management group reporting to the Chief Financial Officer (CFO) monitors the asset-liability position under the supervision of the ALCO.

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C) Operational Risk
ICICI Bank is exposed to many types of operational risk. Operational risk can result from a variety of factors, including failure to obtain proper internal authorizations, improperly documented transactions, failure of operational and information security procedures, computer systems, software or equipment, fraud, inadequate training and employee errors. We attempt to mitigate operational risk by maintaining a comprehensive system of internal controls, establishing systems and procedures to monitor transactions, maintaining key back-up procedures and undertaking regular contingency planning. The Middle Office group monitors adherence to credit procedures. The Internal Audit group undertakes a comprehensive audit of all business groups and other functions, in accordance with a risk-based audit plan. This plan allocates audit resources based on an assessment of the operational risks in the various businesses. The Audit Department conceptualizes and implements improved systems of internal controls, to minimize operational risk.

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13. SWOT ANALYSIS

SWOT analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieve that objective. The technique is credited to Albert Humphrey, who led a convention at Stanford University in the 1960s and 1970s using data from Fortune 500 companies. A SWOT analysis must first start with defining a desired end state or objective. A SWOT analysis may be incorporated into the strategic planning model. Strategic Planning has been the subject of much research.

Strengths: characteristics of the business or team that give it an advantage over others in the industry. Weaknesses: are characteristics that place the firm at a disadvantage relative to others. Opportunities: external chances to make greater sales or profits in the environment. Threats: external elements in the environment that could cause trouble for the business.

Identification of SWOTs is essential because subsequent steps in the process of planning for achievement of the selected objective may be derived from the SWOTs. First, the decision makers have to determine whether the objective is attainable, given the SWOTs. If the objective is NOT attainable a different objective must be selected and the process repeated. The SWOT analysis is often used in academia to highlight and identify strengths, weaknesses, opportunities and threats. It is particularly helpful in identifying areas for development.

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SWOT ANALYSISA scan of the internal and external environment is an important part of the strategic planning process. Environmental factors internal to the firm usually can be classified as strengths (S) or weaknesses (W), and those external to the firm can be classified as opportunities (O) or threats (T). Such an analysis of the strategic environment is referred to as a SWOT analysis. The SWOT analysis provides information that is helpful in matching the firm's resources and capabilities to the competitive environment in which it operates. As such, it is instrumental in strategy formulation and selection. The following diagram shows how a SWOT analysis fits into an environmental scan:

SWOT Analysis Framework

Environmental Scan / Internal Analysis /\ Strengths Weaknesses | SWOT Matrix \ External Analysis /\ Opportunities Threats

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Strengths
A firm's strengths are its resources and capabilities that can be used as a basis for developing a competitive advantage. Examples of such strengths include:

patents strong brand names good reputation among customers cost advantages from proprietary know-how exclusive access to high grade natural resources favorable access to distribution networks

Weaknesses
The absence of certain strengths may be viewed as a weakness. For example, each of the following may be considered weaknesses:

lack of patent protection a weak brand name poor reputation among customers high cost structure lack of access to the best natural resources lack of access to key distribution channels

In some cases, a weakness may be the flip side of strength. Take the case in which a firm has a large amount of manufacturing capacity. While this capacity may be considered a strength that competitors do not share, it also may be a considered a weakness if the large investment in manufacturing capacity prevents the firm from reacting quickly to changes in the strategic environment.

Opportunities
The external environmental analysis may reveal certain new opportunities for profit and growth. Some examples of such opportunities include:

an unfulfilled customer need arrival of new technologies loosening of regulations removal of international trade barriers.
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Threats
Changes in the external environmental also may present threats to the firm. Some examples of such threats include:

shifts in consumer tastes away from the firm's products emergence of substitute products new regulations increased trade barriers

The SWOT Matrix

A firm should not necessarily pursue the more lucrative opportunities. Rather, it may have a better chance at developing a competitive advantage by identifying a fit between the firm's strengths and upcoming opportunities. In some cases, the firm can overcome a weakness in order to prepare itself to pursue a compelling opportunity. To develop strategies that take into account the SWOT profile, a matrix of these factors can be constructed. The SWOT matrix (also known as a TOWS Matrix) is shown below:

SWOT / TOWS Matrix

Strengths Weaknesses

Opportunities

S-O strategies W-O strategies

Threats

S-T strategies

W-T strategies

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S-O strategies pursue opportunities that are a good fit to the company's strengths. W-O strategies overcome weaknesses to pursue opportunities. S-T strategies identify ways that the firm can use its strengths to reduce its vulnerability to external threats. W-T strategies establish a defensive plan to prevent the firm's weaknesses from making it highly susceptible to external threats.

SWOT ANALYSIS OF ICICI BANKStrengths: Very fast growing bank of Rajasthan as well as of India. Track record of high growth and profitability. Strong financial background. One of the biggest financial institutions before converting into bank. Long experience of banking that is why it is called 20 years old new bank. Latest technology used by the bank. Free Home Banking transaction facility. Very good database maintained by the bank, i.e., Banking Customer Information Database. Weaknesses: Low brand image. High average quarterly balance to be maintained by the costumer. Only one branch and one ATM network in whole Rajasthan. Lack of coordination between different departments. Lack of costumer awareness regarding services and bank because of low advertising. Does not provide very important facilities like credit card facility, cash credit limit facility.
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Opportunities:
Opportunities of entering into major cities of Rajasthan like Kota, Ajmer, and Bikaner etc. Scope of more ATM networks. Opportunities to increase its costumer base in liabilities section by marketing their products on local television channels, fm, and hoardings.

Threats: Threats from nationalized banks. Threats from private bank like HSBC, UTI, and HDFC because these banks open both savings and current account at a very nominal amount with some what similar services.

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14.ANALYSIS AND INTERPRETATIONS

A) HOW OFTEN DO YOU VISIT THE BRANCH?

20%

0% Daily Weekly Forthnightly Monthly

25%

55%

InterpretationAlmost 55% respondents visit the branch weekly followed by 25% respondents who visit the branch fortnightly while only 20% of the respondents visit the branch monthly. Large proportion of the respondents visit the branch weekly and fortnightly which is a high frequency.

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B) HOW FAR IS YOUR HOME/OFFICE FROM THE BRANCH?

25%

15% 0-1KM 1-5 KM 5-10KM

15% 45%

> 10KM

InterpretationA large percentage of respondents live far from their bank branch, 45% are 15km away from their bank branch, 15% are further 5-10km away whereas 25% have their bank branches more than 10km away from their home/office and still the visits to the branch have a high frequency. Only 15 % of the respondents are as close as 0-1km from their bank branch.

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C) WHAT ARE THE MAJOR ISSUES FOR WHICH YOU NEED TO VISIT THE BRANCH?

DD/PO/FUNDS TRANSFER Cheque book request Statements 15% Cheque deposit 14% 21% 0% 14% FD/RD opening and renewal Cash withdrawal Cash deposit A/C opening Internet request

0% 9% 18%

9%

InterpretationSince multiple answers were given the highest frequency of people visiting the branch is for Cash withdrawal, Cash deposit is next favorite in the answers. This clearly shows that the Cash On Tap service will be highly useful to the customers, other issues can be handled easily by the remote service delivery.

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D) WOULD YOU LIKE TO CARRY OUT ALL THE ABOVE MENTIONED TRANSACTIONS FROM THE CONVENIENCE OF YOUR HOME?

0%

YES NO

100%

InterpretationAll respondents were very happy with the idea that they could take care of their banking issues without even having to visit the branch specifically for cash withdrawal and cash deposit.

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E) Sources from which the respondents get the knowledge about the innovative financial services.

Sources of Awareness about various innovative financial products

4% 26% 21% 15% Personal Visit Executive from Bank Advertisements Friends/Relatives 34% Others

InterpretationThe above table indicates the percentage distribution of awareness avenues, the major are in favour of advertisements, which score 34% among different avenues such as personal visit, executives of the banks, advertisements and friend/relatives. While the least score is for personal visit and that of other sources.

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F) Growth rate of credit cards.

Number of credit cards

0.8

0.5
0.3

0.6

0.3

0.0 2007 (0.2) 2008 2009

Interpretation-

The above table indicates the growth rate of credit cards, which scores 0.3 million in the year 2008 and it has grown upto 0.6 million in 2009.The growth rate is 100%. This indicates that the distribution of credit cards is on large scale. The ICICI Bank is considered as largest issuer of credit cards.

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15.CONCLUSION
The project of Financial Services of Banks was undertaken at ICICI Bank Ltd. Working under this project I learned various services in detail which banks generally follow. It also helped in gaining knowledge about different concepts provided under different services. The Financial Services of the Banks has become very vital in the smooth operation of the banking activities. The Project work has certainly enriched the knowledge about the effective management of the various services in Banking Sector. Lastly as according to data collection we conclude that given findings and suggestions need to be considered which can prove to be effective to the Banks.

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16.SUGGESTIONS
ICICI Bank should chalk out some programs to create general awareness regarding its presence and various services of the bank. More attention is required in distant located firms and caters the needs of those commercial areas. Personal Marketing / Aggressive Marketing: Today is the era of competition. In order to increase the banking network (in terms of clients and business volume) an aggressive approach is required. The bank should recruit more number of marketing personnel, so that they can cover the whole of the city. Personal marketing can be one of the methods or modes of taking people into confidence.

Promotional campaign: - In the era of such stringent competitiveness one

has to take care of promotional activities. It can be done in following ways:

Advertising: - Initially when we took our work we found that general

awareness amongst people regarding ICICI Bank was good. The bank should instead of being centrally advertised, try to advertise locally. This can be done in following ways: -That involved an amalgamation with Blue Green Construction and Investments, a company promoted by Subhikshas founderhead, R Subramanian, and a rearrangement of lending schedules. ICICI also told the high court today that the retail chain need not depend on the outcome of corporate debt restructuring (CDR) for its revival. The deadline for the CDR was July 31, which was missed. The counsel, along with others, sought for an investigation on Subhiksha. The others include ICICI Venture, HCL Info systems, Azim Premj i-owned Zash Investment and Kotak Mahindra Bank. The investigation request came after Subhiksha told the court that investors and promoters are ready to pump in Rs 250 crore. Post merger (with Blue Green),
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we can pump in Rs 150 crore in eight weeks from the investors and another Rs 100 crore in 6-9 months, counsel representing Subhiksha told the court. The attention is required on areas of growth, profitability, services level and building talent. To increase the profit of bank, bank should decrease their operating expenses and increase their income. To increase its liquidity bank should keep some more cash in its hand instead of giving more and more advances. Prevention against frauds of Credit Cards To take necessary action against defaulters Providing with proper information relating to various services Guidance for investment in various securities in order to protect the interest of investors. Approaching the customers for investment in innovative financial services. Special schemes to be provided on some types of services

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17.ANNEXURE
1) Which type of financial services are offered by Banks? 2) Which types of Credit Cards are provided to the customers? 3) What kind of actions are taken by the banks against defaulters? 4) Is the bank following RBI guidelines from time to time? 5) What are the steps taken by the bank to settle the claims? 6) Which type of innovative financial services are provided by the bank after LPG? 7) Are the new customers attracted by the physical environment of the bank? 8) What are the future plans of the bank?

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18.BIBLIOGRAPHY

BOOKS: Financial Services & Systems - K.K. Sasidharan - Alex Mathews Financial Management - I.M. Pandey - M.Y.Khan

Web Sites: www.icici bank.com www.google.com www.icicidirect.com

News Paper: The times of India Economic Times The Hindu

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