SHRI RAM MURTI SMARAK COLLEGE

OF ENGG. & TECH, BAREILLY - 243202

A REPORT ON ICICI BANK

SUBMITTED BY

DAKSH BHATNAGAR
MBA – 4th Semester
ROLL NO. - 1201470010

Faculty of Management Science

Shri Ram MurtiSmarak College of Engineering & Technology, Bareilly
(014)
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 A REPORT ON ICICI BANK

DECLARATION

This is to declare that Mr. Daksh Bhatnagar, a student of MBA 4thSemester (Batch 2012-14), has

compiled this report after going through some articles available on the internet. No plagiarism

was done while compiling this report

Also, this report is correct to the best of my knowledge and beliefs. In case anything

incorrect is found in this report, I shall be the one responsible for the mistake.

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ACKNOWLEDGEMENT
I, Daksh Bhatnagar, student of MBA IVth Semester, sincerely thank Mr. DevMurti, the

Chairman of esteemed Shri Ram MurtiSmarak College of Engineering and Technology, Bareilly

for providing me the platform and freedom to explore my talent and skills. I am grateful and

wish to place on record my sincere thanks to Dr. Anant K. Srivastava, Head of Management

Department, for the guidance and the moral, academic and problem solving support without

which this project report would not have come up to its present form.

I would also like to thank my colleagues, all faculty members and staff of the MBA

department as well as the employees of this elite Institute for whatever they have done for

helping me out in the completion of this project report.

Last but not the least, I would also like to extend a vote of thanks to all those people and

the websites who guided or directed me in bringing this project to the reality. Without their

guidance and proper support this project report would not have been possible for me to

prepare.

Daksh Bhatnagar

1201470010

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EXECUTIVE SUMMARY

Banks or banking has become an indispensable part of our daily lives. The way people used to
deposit and withdraw their money has completely changed. With the advent of e-commerce,
Internet banking has completely transformed the face of banking. Services such as ATM
services, transfer of money through social networking sites or mobiles are some of the reasons
for fast withdrawal of cash. FDI in banking has led to the increase in competition which is why
consumers are getting premium and customized banking services.

In this report, one of the biggest private sector bank i.e. ICICI Bank is discussed. While going
through this report the reader can get insights about structure of Indian banking system, about
ICICI bank, their business profile, domestic and international subsidiaries of the bank,
acquisitions made by the bank, awards bagged by the bank, their innovative products (like
Pockets, a Facebook app and iWish), the competitors who pose a threat to the bank, grievance
redressal mechanism, the controversies it was found involved in, the social initiatives taken by
the bank under their Corporate Social Responsibility (CSR) programme. The bank has also
played a role in developing the market infrastructure in India like it along with UTI has setup
CRISIL which is credit rating agency of India.

As is usually said by customers that public sector is lethargic and keeps a customer waiting. In
this era where customers don’t like to wait, ICICI Bank has set an example and posed a threat to
all those banks who are not providing good services to its customers. When it comes to better
services, people now-a-days reckon on ICICI Bank. All this has been possible because of undying
efforts of its chairman Mr. K.V Kamath and the exemplary MD & CEO Ms. ChandaKochhar. The
company’s performance over the years has certainly improved and is expected to get better in
the future.

Daksh Bhatnagar
1201470010

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CHAPTER 1
Introduction to Indian Banking System

Banks play a major role in developing an economy. Banks were initially set up with the objective
of carrying out its primary function which is to provide loans and accept deposits by public. But
with the emergence of economy of India, banks started playing various roles like collecting
money of share calls on behalf of a company etc.

Banking in India in the modern sense originated in the last decades of the 18th century. The
first banks were Bank of Hindustan (1770-1829) and The General Bank of India, established
1786 and since defunct.

The largest bank, and the oldest still in existence, is the State Bank of India, which originated in
the Bank of Calcutta in June 1806, which almost immediately became the Bank of Bengal. This
was one of the three presidency banks, the other two being the Bank of Bombay and the Bank
of Madras, all three of which were established under charters from the British East India
Company. The three banks merged in 1921 to form the Imperial Bank of India, which, upon
India's independence, became the State Bank of India in 1955. For many years the presidency
banks acted as quasi-central banks, as did their successors, until the Reserve Bank of India was
established in 1935.

In 1969 the Indian governmentnationalized all the major banks that it did not already own and
these have remained under government ownership. They are run under a structure known as
'profit-making public sector undertaking' (PSU) and are allowed to compete and operate as
commercial banks. The Indian banking sector is made up of four types of banks, as well as the
PSUs and the state banks, they have been joined since the 1990s by new private commercial
banks and a number of foreign banks.

Banking in India was generally fairly mature in terms of supply, product range and reach-even
though reach in rural India and to the poor still remains a challenge. The government has
developed initiatives to address this through the State Bank of India expanding its branch
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network and through the National Bank for Agriculture and Rural Development with things like
microfinance.

Indian Banking Industry currently employs 1,175,149 employees and has a total of 109,811
branches in India and 171 branches abroad and manages an aggregate deposit ofRs.67504.54
billion (US$1.1 trillion or €790 billion) and bank credit of Rs.52604.59 billion (US$860 billion or
€620 billion). The net profit of the banks operating in India was 1027.51 billion (US$17 billion
or €12 billion) against a turnover of Rs.9148.59 billion (US$150 billion or €110 billion) for the
fiscal year 2012-13.

Fig. 1: Structure of Indian Banking System

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CHAPTER 2
Introduction to ICICI Bank
ICICI Bank is an Indian multinational banking and financial services company headquartered in
Mumbai. It is the second largest bank in India by assets and by market capitalization, as of
2014. It offers a wide range of banking products and financial services to corporate and retail
customers through a variety of delivery channels and through its specialized subsidiaries in the
areas of investment banking, life, non-life insurance, venture capital and asset management.
The Bank has a network of 3,539 branches and 11,162 ATMs in India, and has a presence in 19
countries.

ICICI Bank is one of the Big Four banks of India, along with State Bank of India, Punjab National
Bank and Bank of Baroda. The bank has subsidiaries in the United Kingdom, Russia, and Canada;
branches in United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai
International Finance Centre; and representative offices in United Arab Emirates, China, South
Africa, Bangladesh, Thailand, Malaysia and Indonesia. The company's UK subsidiary has also
established branches in Belgium and Germany.

Business Profile

Type Private Owned

Traded as BSE: 532174, NSE: ICICIBANK, NYSE: IBN, BSE SENSEX Constituent, CNX Nifty
Constituent
Industry Banking, Financial services
Headquarters Mumbai, India
Presence Worldwide
Key people Mr. K.V. Kamath (Chairman)
Ms. Chanda Kochhar (MD & CEO)
Products Credit cards, Consumer banking, corporate banking, finance and insurance,
investment banking, mortgage loans, private banking, wealth management
Sales Turnover Rs. 114,500 crores (as on Dec 2013)
Website www.icicibank.com

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CHAPTER 2

Corporate history
ICICI Bank was established by the Industrial Credit and Investment Corporation of India, an
Indian financial institution, as a wholly owned subsidiary in 1955. The parent company was
formed in 1955 as a joint-venture of the World Bank, India's public-sector banks and public-
sector insurance companies to provide project financing to Indian industry. The bank was
initially known as the Industrial Credit and Investment Corporation of India Bank, before it
changed its name to the abbreviated ICICI Bank. The parent company was later merged with
the bank.ICICI Bank launched internet banking operations in 1998.

ICICI's shareholding in ICICI Bank was reduced to 46 percent, through a public offering of shares
in India in 1998, followed by an equity offering in the form of American Depositary Receipts on
the NYSE in 2000. ICICI Bank acquired the Bank of Madura Limited in an all-stock deal in 2001
and sold additional stakes to institutional investors during 2001-02.

In the 1990s, ICICI transformed its business from a development financial institution offering
only project finance to a diversified financial services group, offering a wide variety of products
and services, both directly and through a number of subsidiaries and affiliates like ICICI Bank. In
1999, ICICI become the first Indian company and the first bank or financial institution from non-
Japan Asia to be listed on the NYSE.

In 2000, ICICI Bank became the first Indian bank to list on the New York Stock Exchange with its
five million American depository shares issue generating a demand book 13 times the offer size.

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.

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In 2008, following the 2008 financial crisis, customers rushed to ICICI ATMs and branches in
some locations due to rumors of adverse financial position of ICICI Bank. The Reserve Bank of
India issued a clarification on the financial strength of ICICI Bank to dispel the rumors.

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CHAPTER 3
Subsidiaries
Domestic

ICICI Prudential Life Insurance Company Limited

ICICI Lombard General Insurance Company Limited
ICICI Prudential Asset Management Company Limited
ICICI Prudential Trust Limited
ICICI Securities Limited
ICICI Securities Primary Dealership Limited
ICICI Venture Funds Management Company Limited
ICICI Home Finance Company Limited
ICICI Investment Management Company Limited
ICICI Trusteeship Services Limited
ICICI Prudential Pension Funds Management Company Limited

International

ICICI Bank UK PLC

ICICI Bank Canada
ICICI Bank Eurasia Limited Liability Company
ICICI Securities Holdings Inc.
ICICI Securites Inc.
ICICI International LImited

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CHAPTER 4
Acquisitions
Acquisitions means to acquire/purchase any other firm. When a big company acquires a smaller
company then it is known as acquisitions. There could be various reasons for an acquisition like
entering into new market, reducing the level of competition, to reduce the overall cost of
supply chain etc. ICICI Bank has also acquired some firms and the acquisitions with the year in
these acquisitions happened are mentioned below:-

1996: SCICI Ltd. A diversified financial institution with headquarters in Mumbai

1997: ITC Classic Finance. Incorporated in 1986, ITC Classic was a non-bank financial firm
that engaged in hire & purchase, and leasing operations. At the time of being acquired,
ITC Classic had eight offices, 26 outlets, and 700 brokers.
1998: Anagram Finance. Anagram had built up a network of some 50 branches in
Gujarat, Rajasthan, and Maharashtra that were primarily engaged in retail financing of
cars and trucks. It also had some 250,000 depositors.
2001: Bank of Madurai
2002: The Darjeeling and Shimla branches of Grindlays Bank
2005: Investitsionno-Kreditny Bank (IKB), a Russian bank
2007: Sangli Bank. Sangli Bank was a private sector unlisted bank, founded in 1916, and
30% owned by the Bahte family. Its headquarters were in Sangli in Maharashtra, and it
had 198 branches. It had 158 in Maharashtra and 31 in Karnataka, and others in Gujarat,
Andhra Pradesh, Tamil Nadu, Goa, and Delhi. Its branches were relatively evenly split
between metropolitan areas and rural or semi-urban areas.
2010: The Bank of Rajasthan (BOR) was acquired by the ICICI Bank in 2010 for 3,000
crores. RBI was critical of BOR's promoters not reducing their holdings in the company.
BOR has since been merged with ICICI Bank.

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CHAPTER 5
Products/Services
Every firm comes up either with a tangible product or an intangible service which is offered to
customers and by selling off those products or services a company generates its sales revenue.
Following are some of ICICI bank’s products or services that are being offered to its customers:-

'Pockets by ICICI Bank'

In September 2013, ICICI Bank launched a first of its kind app on Facebook 'Pockets by ICICI
Bank' across the globe to enable customers to carry out a wide range of financial transactions
on Facebook Customers can access the ICICI Bank app by logging into their Facebook account
and then going to the official ICICI Bank Facebook page, and clicking on the tab for Pockets by
ICICI Bank. The customer then registers online with their debit card number and PIN, and
selecting a new four digit PIN for subsequent logins.[32] Through the app, customers can make
payments to friends, recharge prepaid mobile and book movie tickets. One can also carry out
non-financial transactions such as accessing a mini statement of their savings bank account,
getting demat holding statements, opening fixed or recurring deposit, order a cheque book,
stop a cheque payment, upgrade debit card, among others.

Some of the key features of 'Pockets by ICICI Bank' are:

1. Split n share: It allows customers to split and track group expenses and share them with
friends on Facebook. The app also gives the customer the option of sending messages to
remind friends on pending payments.
2. Pay a friend: It allows customers to transfer funds to their friends without knowing their
bank account details like account number, bank branch, branch IFSC code etc. Through
this facility, customers can create electronic coupons that can be redeemed by their
friends on the bank website icicibank.com.

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MySavings Rewards

ICICI Bank has rolled-out the programme ‘MySavings Rewards’ from 1 September 2012, where
reward points are offered to individual domestic customers for a variety of transactions done
through the savings bank account. Reward points are offered automatically to customers for
activating Internet banking, shopping online/ paying utility bills with Internet banking and auto-
debit from savings account towards equated monthly installments for home/ auto/ personal
loan/ recurring deposit. Customers are required to maintain a monthly average balance of
15,000 or more.

Customers can redeem their reward points by

logging into his ICICI Bank internet banking account

Calling up customer care
Walking into the nearest ICICI Bank branch

iWish - the flexible recurring deposit

iWish is a flexible recurring deposit product launched by ICICI Bank for its savings account
customers. iWish is a fun and flexible way to encourage savings among youth for fulfilling
aspirations. Unlike a traditional recurring deposit, iWish allows customers to save varying
amounts of money at any time of their choice. Customers can create several goals and track
their progress on an easy-to-use online interface. They can also share their wishes on Facebook
and let their friends and family be a part of their dreams by contributing to their account from
any bank account. There will be no penalties if a customer misses his monthly contribution to
the recurring deposit. The minimum duration is six months and a customer can open this
account starting with 500.

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The key features of iWish are:

Flexibility: Flexible recurring deposit allows a customer to deposit any amount at any
point of time. Customers also have an option of depositing money by giving a standing
instruction.
Better returns: Customers can earn recurring deposit interest rates on their iWish
account while enjoying the freedom of not having to deposit every month.
Sharing: Customers can choose to share their wishes on Facebook and let their friends
and family be part of their dreams.
Contributions:iWish gives an opportunity to the family and friends of a customer to
contribute and help him attain his aspirations faster. Contributions can be made from
any bank account using a VISA debit card.

ICICI Bank has developed this product in collaboration with Social Money.

Green products and services

Instabanking

It is the platform that brings together all alternate channels under one umbrella and gives
customers the option of banking through Internet banking, i-Mobile banking, IVR Banking. This
reduces the carbon footprint of the customers by ensuring they do not have to resort to
physical statements or travel to their branches.

Vehicle Finance

As an initiative towards more environment friendly way of life, Auto loans offer 50% waiver on
processing fee on car models which uses alternate mode of energy. The models identified for
the purpose are, Maruti's LPG version of Maruti 800, Omni and Versa, Hyundai's Santro Eco,
Civic Hybrid of Honda, Reva electric cars, Tata Indica CNG and Mahindra Logan CNG versions.

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Carbon Footprint Calculator

Inputs include region, user input of the distance traveled in a particular medium of transport
daily, electricity consumed per month and LPG cylinder/piped natural gas used per month. It
calculates the net carbon footprint to create awareness and sensitize people about the
environment. It also shows the world's and India's average carbon footprint.

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CHAPTER 6
Awards
Awards mean a lot to anyone. Be it an individual or an organization. Award denote that hard
work by people have been recognized and honored by higher authorities. It shows how much
efforts were put in by employer as well as employees. Had they not worked hard they won’t
have achieved anything and thus won’t have received any award. Following are the awards that
have been given to ICICI Bank for its performance and continuous efforts in providing best
services to its customers.

2004

Best Bank in India Award presented by Euromoney Magazine

2007

ICICI Bank has been conferred the Euromoney Award 2007 for the Best Bank in the Asia-
Pacific Region
ICICI Bank wins the Excellence in Remittance Business award by The Asian Banker

2009

ICICI Bank bags the "Best bank in SME financing (Private Sector)" at the Dun &
Bradstreet Banking awards

2011

ICICI Bank is the only Indian brand to figure in the BrandZ Top 100 Most Valuable Global
Brands Report, second year in a row
ICICI Bank ranked 5th in the list of "57 Indian Companies", and 288 th in World Rankings
in Forbes Global 2000 list.
ICICI Bank has won the "Banking Technology Awards 2010" at The Indian Banks
Association in the following categories
ICICI Bank was recognized for its Special Citation of the Fully Electronic Branch Service
Channel, first set up at Hiranandani Estate, Thane, at the Financial Insights Innovation
Awards held in conjunction with Asian Financial Services Congress
For the second year in a row, ICICI Bank was ranked 70th in the Brandirectory league
tables of the world’s most valuable brands by, The BrandFinance® Banking 500

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ICICI Bank was ranked 1st in the Banking and Finance category and 9th in the "2010 Best
Companies To Work For" by Business Today
ICICI Bank UK, HiSAVE product range has been awarded the Consumer Moneyfacts
Awards 2011 for the 'Best Online Savings Provider'
For the second consecutive year, ICICI Bank was ranked second in the "India's 50 Biggest
Financial Companies", in The BW REAL 500 by Business World
ICICI Bank was one of the winners in the Global Awards for Enterprise & IT Architecture
Excellence. ICICI Bank bagged the award in the ‘Business Intelligence and Analytics'
category.
The Brand Trust Report ranks ICICI among the top 4 most trusted financial institutions.
ICICI Bank awarded "House Of The Year (India)", by Asia Risk magazine, for eighth time
in a row since 2004
ICICI Bank awarded the most Tech-friendly Bank award by Business World
ICICI Bank received the Best Trade Finance Bank in India by The Asset Triple A Award,
Hong Kong
ICICI Bank is the first and the only Indian brand to be ranked as the 45th most valuable
global brand by BrandZ Top 100 Global Brands Report

2012

Airtel, ICICI among 'top 100 global brands'

ICICI Bank won the "Best Bond House (India) 2011", by IFR Asia
ICICI Bank awarded the Best Bank (India) by Global Finance
ICICI Bank won the "Century International Quality Era Award" at Geneva
ICICI Bank was awarded the "Best Foreign Exchange Bank (India)" by Finance Asia
Country Awards.
ICICI Bank received the "Dataquest Technology Innovation Awards 2012" for Data centre
migration by Dataquest.
ICICI Bank was conferred the Best Performance Award for Self Help Group (SHG) Bank
Linkage Programme in NABARD's State Level Awards announced by their Maharashtra
Regional Office. The Bank received the first prize for the year 2010-11 in the Private
Sector Bank category and 2nd runner up for the year 2011-12 in the Commercial Bank
category.
For the second consecutive year, ICICI Bank won the NPCI's NFS Operational Excellence
Awards in the MNC and Private Sector Banks Category for its ATM network.
Mr.K.V.Kamath was awarded the "Hall Of Fame" by Outlook Money for his long standing
contribution in the financial services sector.
ICICI Bank won the Best Bank - India Award by The Banker.
Ms. ChandaKochhar ranked 18th in the Fortune's list of '2012 Businesspersons of the
Year'. The 50 global leaders is Fortune's annual ranking of leaders who are "the best in
business".
Ms. ChandaKochhar tops the list of "50 Most Powerful Women in Business" by Fortune
India.

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ICICI Bank tops the list of "Private sector and Foreign Banks" by Brand Equity, Most
Trusted Brands 2012. It ranks 15th in the "Top Service 50 Brands".
For the third consecutive year, ICICI Bank ranked second in "India's 50 Biggest Financial
Companies" in The BW Real 500 by Businessworld.
For the second year in a row, Ms. ChandaKochhar, Managing Director & CEO was ranked
5th in the International list of 50 Most Powerful Women in Business by Fortune.
ICICI Bank tops the list of most fans in India and globally ranks fifth amongst financial
institutions on Facebook in the social media engagement study conducted by Ketchum
Sampark.
ICICI Bank in the Private Sector Bank category won the Best Technology Bank of the
Year, Best Financial Inclusion Initiative and Best Use of Technology in Training and e-
Learning by Indian Bank's Association (IBA) Technology Awards. The Bank also received
the first runner up for Best Online Bank, Best Customer Relationship Initiative and Best
Use of Mobility Technology in Banking by IBA Technology Awards.
ICICI Bank awarded the Best SME Bank for Treasury and Working Capital (India) by The
Asset Triple A.
ICICI Bank received the Best Trade Finance House and Best Cash Management House by
The Corporate Treasurer Alliance Country Awards.
ICICI Bank awarded the Best Private Sector Bank in Global Business Development, Rural
Reach and SME financing categories by Dun & Bradstreet - Polaris Financial Technology
Banking Awards.

2013

ICICI Bank has been adjudged winner at the Express IT Innovation Award under the
Large Enterprise category
ICICI Bank wins awards under the categories of 'Most Innovative Bank' and 'Most
Innovative use of Multi-Channel Infrastructure' at the Indian Bank's Association's
BANCON Innovation Awards 2013.
ICICI Bank won the Asian Banking & Finance Retail Banking Award 2013 for the Online
Banking Initiative of the Year
ICICI Bank won an award under the Social Media category at the InformationWeek EDGE
Award
Ms. ChandaKochhar, MD and CEO has been awarded as the Best CEO - Private Sector
category at the Forbes India Leadership Awards 2013.
Ms. ChandaKochhar, MD & CEO, has been named as the most powerful woman in
business in India for the third consecutive year in Fortune's list of '50 Most Powerful
Women In Business: The Global 50'. She is also among the four most powerful women in
business in the world, according to the list.
ICICI Bank received the award for 'Best Private Sector Banker' by the Sunday Standard
Best Bankers Awards 2013.

ICICI Bank has been awarded the 'Best Banker - All round expansion' by the Sunday
Standard Best Bankers Awards 2013.
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ICICI Bank won 'Best Banker - Efficiency & Profitability' by the Sunday Standard Best
Bankers Awards 2013.
Mr KV Kamath, Chairman, receives the "AIMA Managing India" Award for "Outstanding
Institution Builder"
MsChandaKochhar, MD & CEO, receives the "AIMA JRD Tata Corporate Leadership
Award" 2012
ICICI Bank has won the Trade Finance Magazine Award for Excellence 2013, under the
category of 'Asia Pacific Awards : Best Trade Bank in India'

ICICI Bank received the Asian Banking & Finance Wholesale Banking Awards 2013 for the
India Domestic Trade Finance Bank of the Year
ICICI Bank Limited has been awarded as the Best Private Sector Bank under the category
Global Business Development for the Dun & Bradstreet - Polaris Financial Technology
Banking Awards 2013
ICICI Bank has been one of the recipients of the Corporate Governance Asia Annual
Recognition Awards 2013
MsChandaKochhar received the 'Transformation Leader Award' by NDTV Profit Business
Leadership Awards 2012.
For the second consecutive year, Mr. N.S.Kannan, Executive Director & CFO, received
the "Best Performing CFO", in the Banking / Financial Services category by CNBC - TV 18.
Ms. ChandaKochhar, MD & CEO, was also featured in the Power List 2013 of 25 most
powerful women in Inda by India Today, for the third year in a row.
Ms. ChandaKochhar is the only Indian to be featured in the Dow Jones list of Most
Influential Female Executives in the World of the last decade. She is ranked 12th in the
global list.
ICICI Bank awarded the Most Admired Infrastructure Debt Financer and PPP Project of
the Year: Yamuna Expressway Project, in the 5th KPMG Infrastructure Today Awards by
ASAPP Media Information Group.
For the 4th consecutive year, ICICI Bank won the Celent Model Bank for the next
generation technology oriented banking solutions.
ICICI Bank was awarded a "Special IT Innovation Award" by Lenovo - NASSCOM and
CNBC-TV18.
ICICI Bank was the winner of "6th Loyalty Awards" for My Savings Rewards by AIMIA
(global leader in Loyalty).
ICICI Bank UK PLC's online savings product HiSAVE won the "Highly Commended" (2nd
rank) at the Consumer Moneyfacts Awards.
ICICI Bank received the "Gram Samvad", Service for Low cost/Small budget marketing
initiative Award by Rural Marketing Association of India (RMAI).
Ms. ChandaKochhar awarded the Businessperson of the Year 2012 by Business India.
She is the first woman recipient of this award in 31 years.
ICICI Bank won the Best domestic bank, India by The Asset Triple A Country Awards.

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CHAPTER 7
Comparative Performance
Performance in terms of sales revenue

The above chart depicts the sales revenue of ICICI bank from 2008 to 2013. As can be seen
there are estimated sales and the actual sales shown on the chart. Every year, the bank did not
achieve what they estimated. The worst year for ICICI bank, according to this chart is 2011 as
the difference between the estimated sales and actual sales is the biggest. On the other hand,
the next year i.e. 2012 can be considered as the best year as they achieved more than what
they estimated which means the company not only recovered the previous year’s loss but also
surpassed the estimated sales of 2012.

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CHAPTER 8
Competitors

BANKS MARKET NET INTEREST NET PROFIT TOTAL ASSETS

CAP. INCOME
HDFC Bank 175,520.33 35,064.87 6,726.28 400,331.90
ICICI Bank 140,317.94 40,075.60 8,325.47 536,794.69
Axis Bank 63,614.35 27,182.57 5,179.43 340,560.66
Kotak Mahindra 58,214.95 8,042.49 1,360.72 83,693.68

IndusInd Bank 24,615.65 6,983.23 1,061.18 73,306.52

Yes Bank 12,833.15 8,294.00 1,300.68 99,104.12
ING Vysya Bank 10,697.00 4,861.58 612.96 54,836.45
JK Bank 7,152.17 6,136.79 1,055.10 71,743.32
Federal Bank 7,142.15 6,167.57 838.17 60,626.78
KarurVysya 3,399.78 4,242.43 550.32 46,733.35

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CHAPTER 9
Corporate governance
Corporate governance refers to the set of systems, principles and processes by which a
company is governed. They provide the guidelines as to how the company can be directed or
controlled such that it can fulfil its goals and objectives in a manner that adds to the value of
the company and is also beneficial for all stakeholders in the long term. Stakeholders in this
case would include everyone ranging from the board of directors, management, shareholders
to customers, employees and society. The management of the company hence assumes the
role of a trustee for all the others.

In the recent past there have been many scams because of which a need for better corporate
governance is felt. SEBI and other regulatory bodies are trying to improve the condition of
Corporate Governance so that these scams do not surface too often.

For better corporate governance, ICICI bank has also taken few steps and these are as follows:-

Group Anti Money Laundering Policy: The ICICI Group AML Policy establishes the
standards of AML compliance and is applicable to all activities.

Code of Conduct: ICICI Bank has formulated a Code of Business Conduct and Ethics for
its directors and employees.

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CHAPTER 10

Tab Banking

Tab Banking is the latest addition by ICICI bank to the banking facilities provided by the bank.
Powered with an advanced application on tablets, customers can now enjoy a faster and
smoother account opening experience with ICICI Bank.The costs of Tab banking are just one-
tenth of that of branch banking, says Mr. KVS Manian, President, Consumer Banking. Axis Bank
and Kotak Mahindra bank have also started the practice.

The Process

Tab banking officer will come to a place of customer’s convenience, click your photograph and
scan the necessary documents required to open an ICICI Bank account with the help of a tablet.
The account gets activated within a day.

Advantages

Some benefits of Tab Banking other than avoiding hassle of arranging documents and account
activation within a day are:-

1. Check out ICICI Bank Offer Zone to avail exclusive offers and discounts on a variety of
products and services
2. Branch Locator
3. Calculate Monthly Average Balance and Loan EMI
4. Understand how to use iMobile and Internet Banking through Demo videos
5. Know more about Health, Motor and Travel Insurance calculator
6. Know more about service charges
7. Brings down the percentage of rework from 7 percent to 1 percent
8. Would reduce turnaround time and cost to the bank

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CHAPTER 11

Grievance Redressal
Sometimes a customer may be dissatisfied with the services. In that case he/she must be heard
by service provider or company otherwise it would lead to dissatisfied customers who would
spread bad words about the company which would result in tarnishing of the image and
reduction in the sales revenue of the company. For addressing the issues or the problems of
customers every firm designs a grievance redressal system through which the problems of
customers can be easily sorted out.

ICICI Bank has also designed a grievance redressal system through which an aggrieved customer
can get his or her problem solved by contacting various persons at different steps of the
system. There are four steps in grievance redressal system of ICICI Bank. At first step, customer
has two options. Either he can dial the customer care number or file his complaint online. If the
customer is dissatisfied then at the second step, Mr. KrishanGovindan who is the head of
Customer service can be contact in case the aggrieved customer is still dissatisfied. At step 3,
Mr. Shiva Tadikonda who is the nodal officer can be contacted for further discontentment. If
still the problem persists, Mr. Sourabh Singh who is Senior General Manager & Head of
Customer Service can be contacted.The bank promises to respond to complaints within 7
business days.

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CHAPTER 12
Role in development of market infrastructure
ICICI Bank has played a major role and contributed to setting up of different Indian institutions
which include the following:

1. National Stock Exchange (NSE)

The National Stock Exchange was promoted by India’s leading financial institutions (including
ICICI Ltd.) in 1992 on behalf of the Government of India with the objective of establishing a
nationwide trading facility for equities, debt instruments and hybrids, by ensuring equal access
to investors all over the country through an appropriate communication network.

2. Credit Rating Information Services of India Limited (CRISIL)

In 1987, ICICI Ltd along with UTI set up CRISIL as India's first professional credit rating agency.
CRISIL offers a comprehensive range of integrated products and service offerings which include
credit ratings, capital market information, industry analysis and detailed reports.[21]

3. National Commodities and Derivatives Exchange Limited (NCDEX)

NCDEX is a professionally managed online multi-commodity exchange, set up in 2003, by ICICI

Bank Ltd, LIC, NABARD, NSE, Canara Bank, CRISIL, Goldman Sachs, Indian Farmers Fertiliser
Cooperative Limited (IFFCO) and Punjab National Bank.

4. Financial Innovation Network and Operations Pvt Ltd. (FINO)

ICICI Bank has facilitated setting up of "FINO Cross Link to Case Link Study" in 2006, as a
company that would provide technology solutions and services to reach the underserved and
under banked population of the country. Using cutting edge technologies like smart cards,
biometrics and a basket of support services, FINO enables financial institutions to

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conceptualize, develop and operationalize projects to support sector initiatives in microfinance

and livelihoods.

5. Entrepreneurship Development Institute of India

Entrepreneurship Development Institute of India (EDII), an autonomous body and not-for-profit

society, was set up in 1983, by the erstwhile apex financial institutions like IDBI, ICICI, IFCI and
SBI with the support of the Government of Gujarat as a national resource organization
committed to entrepreneurship development, education, training and research.

6. North Eastern Development Finance Corporation (NEDFI)

North Eastern Development Finance Corporation (NEDFI) was promoted by national level
financial institutions like ICICI Ltd in 1995 at Guwahati, Assam for the development of
industries, infrastructure, animal husbandry, agri-horticulture plantation, medicinal plants,
sericulture, aquaculture, poultry and dairy in the North Eastern states of India. NEDFI is the
premier financial and development institution for the North East region.

7. Asset Reconstruction Company India Limited (ARCLI)

Following the enactment of the Securitisation Act in 2002, ICICI Bank together with other
institutions, set up Asset Reconstruction Company India Limited (ARCIL) in 2003, to create a
facilitative environment for the resolution of distressed debt in India. ARCIL was established to
acquire non-performing assets (NPAs) from financial institutions and banks with a view to
enhance the management of these assets and help in the maximization of recovery. This would
relieve institutions and banks from the burden of pursuing NPAs, and allow them to focus on
core banking activities.

8. Credit Information Bureau of India Limited (CIBIL)

ICICI Bank has also helped in setting up Credit Information Bureau of India Limited (CIBIL),
India’s first national credit bureau in 2000. CIBIL provides a repository of information (which

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contains the credit history of commercial and consumer borrowers) to its members in the form
of credit information reports. The members of CIBIL include banks, financial institutions, state
financial corporations, non-banking financial companies, housing finance companies and credit
card companies.

9. Institutional Investor Advisory Services India Limited (IiAS)

ICICI Bank has indirectly invested, through ICICI Prudential Life Insurance Company, in IiAS. IiAS
is a voting advisory firm aka proxy firm, dedicated to providing participants in the Indian market
with data, research and commentary. It provides recommendations on resolutions placed
before shareholders of over 300 companies.

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CHAPTER 12
Controversies
Inhuman debt recovery methods

A few years after its rise to prominence in the banking sector, ICICI bank faced allegations on
the recovery methods it used against loan payment defaulters. A number of cases were filed
against the bank and its employees for using "brutal measures" to recover the money. Most of
the allegations were that the bank was using goons to recover the credit card payments and
that these "recovery agents" exhibited inappropriate and in some cases, inhuman behavior.
Incidents were reported wherein the defaulters were put to "public shame" by the recovery
agents.

The bank also faced allegations of inappropriate behavior in recovering its loans. These
allegations started initially when the "recovery agents" and bank employees started
threatening the defaulters. In some cases, notes written by the bank's employees asking the
defaulters to "sell everything in the house including family members", were found. Such
charges faced by the bank rose to a peak when suicide cases were reported wherein the suicide
notes spoke of the Bank's recovery methods as the cause of the suicide. This led to a lot of legal
battles and the bank paying huge compensations.

Money laundering allegations

ICICI Bank was one of the leading Indian banks accused of blatant money laundering through
violation of RBI guidelines in the famous CobraPost sting operation which shook up Indian
banking industry during April–May 2013.

On 14 March 2013 the online magazine CobraPost released video footage from Operation Red
Spider showing high-ranking officials and some employees of ICICI Bank agreeing to convert
black money into white, an act in violation of Money Laundering Control Act. The Government

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of India and Reserve Bank of India ordered an inquiry following the exposé. On 15 March 2013,
ICICI Bank suspended 18 employees, pending inquiry. On 11 April 2013 Deputy Governor of RBI,
HR Khan reportedly told that the central bank is initiating action against ICICI Bank in connexion
with allegations of money laundering.

Credit Rating

On account of the growing concerns over India's sovereign debt ratings,credit ratings agency
Moody's lowered the ratings for ICICI Bank from Baa3 to Baa2 in May 2012.

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CHAPTER 13

Social Initiatives

A firm which operates in a society considers itself as a part of society and believes they must
give back to the society. Though it compensates for everything still they are taking initiatives
because they feel that they have been fostered by the society and feel responsible towards the
society. This can be referred to as Corporate Social Responsibility (CSR) activities of a firm. In
today’s world, most of the companies are performing such activities not because it has been
made mandatory by the govt. but firms feel by performing CSR activities, their image amongst
their customers would improve.

Following are the initiatives that have been taken by ICICI bank:-

For Primary Health

o Jharkhand Sahhiya Programme
o Nutrition Programme In Baran, Rajasthan
For Elementary Education
o School and Education Teacher Reform Programme in Rajasthan
o Chhattisgarh Curriculum and text development programme
For Skill Development & Livelihoods – Provide vocational and skill training for rural
youth
For Financial Inclusion
o Insurance Plan
o Commercial Banking Systems

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Go Green Initiative

The Go Green Initiative is an organization wide initiative that moves beyond moving people,
processes and customers to cost effective automated channels to build awareness and
consciousness of our environment, our nation and our society.

Objective

ICICI Bank’s Green initiative is to make healthy environment in the organization i.e.; to create
intrapersonal skills amongst the customers and understanding between employees of the
organization.

Broad objectives of the ICICI are:

1. to assist in the creation, expansion and modernization of private concerns;

2. to encourage the participation of internal and external capital in the private concerns;
3. To encourage private ownership of industrial investment.

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REFERENCES
http://en.wikipedia.org/wiki/ICICI_Bank

http://www.moneycontrol.com/financials/icicibank/balance-sheet/ICI02#ICI02

http://www.moneycontrol.com/competition/icicibank/comparison/ICI02#ICI02

http://www.icicibank.com/privilege-banking/personal/privilege-banking-advantage.html

http://icicibank.com/complaints/Complaints-step3.html

http://www.thehindubusinessline.com/economy/now-banking-on-tablets-to-win-
customers/article5747094.ece

http://www.dnb.co.in/News_Press.asp?pid=1179

http://en.wikipedia.org/wiki/Banking_in_India

http://www.ibef.org/industry/banking-india.aspx#

http://www.investopedia.com/articles/07/banking.asp

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