ACKNOWLEDGEMENT

A

Project Study Report

On

Training Undertaken at

ICICI BANK

Titled

AN INSIGHT INTO RETAIL BANKING AND STUDY OF CUSTOMER BEHAVIOUR

Submitted in partial fulfillment for the Award of degree of

Master of Business Administration

Submitted By:-Submitted To:-

Kavita GoyalMrs. Kajal SitlaniMBA Semester IV (project Guide)2007-2009 Apex institute of Management and Science,Jaipur.

Acknowledgement

I express my sincere thanks to my project guide, Mrs.Kajal Sitalani, (lecturer, dept.MBA) for guiding me right form the inception till the successful completion of the project. I sincerely acknowledge her them for extending their valuable guidance, support for literature, critical reviews of project and the report and above all the moral support he had provided to me with all stages of this project.

I would also like to thank the supporting staff of sales and distribution Department, for their help and cooperation throughout our project.

(Signature) Kavita Goyal

PREFACE

Banks are the oldest financial institutions in Indian scenario. They are providing all facilities to all citizens for their own purposes by their terms. To survive in this modern market every Bank implements so many new innovative ideas, strategies, and advanced technologies. For that they give each and every minute detail about their institutions and project to public.

They are providing ample facilities to satisfy their customers i.e. Net Banking, Mobile Banking, Door to Door facility, Instant facility, Investment facility, Demat facility, Credit Card facility, Loans and Advances, Account facility etc. and such Banks get success to create their own image in public and corporate world. These Banks always accept innovative notions in Indian Banking scenario like Credit Cards, ATM machines, Risk Management etc.

So, as a student of M.B.A., I take keen interest in banking industry and for those, Banks are the major source of finance. So this must be the first choice for me to select this project.

EXECUTIVE SUMMARYBanking Industry which is basically my concern industry around which my project has to be revolved is really a very complex industry and to work for this was really a complex and hectic task and few times I felt so frustrated that I thought to left the project and go for any new industry and new project challenges which I faced while doing this project were following-

Banking sector was quite similar in offering and products and because of that it was very difficult to discriminate between ICICI product and products of the competitors.

Target customers and respondents were too busy persons that to get their time and view for specific questions was very difficult.

Sensitivity of the industry was also a very frequent factor which was very important to measure correctly.

Every financial customer has his/her own need and according to the requirements of the customer product customization was not possible.

So above challenges some time forced me to leave the project but any how I did my project in all circumstances. Basically in this project I analyzed that-

What factors are really responsible for performance of ICICI Banks performance in this competitive era. Table of contentsS.No.ContentsAddress

1INTRODUCTION TO INDIAN BANKING INDUSTRIES8

1.1Introduction9

1.2History of Banking in India10

1.3Nationalization of Banks in India13

1.4Scheduled Commercial Banks In India14

1.5Retail Banks or Commercial Bank17

1.6

1.6.1

1.6.2The regulatory body: rbi (RESERVE BANK OF INDIA)19

Introduction19

Major Functions Of RBI22

1.7

1.7.1

1.7.2

1.7.3RETAIL BANKING-THE NEW FLAVOR23

The Concept of Retail Banking23

RETAIL BANKING Products24

Add-ons and Freebies26

1.8Fact Files of Banks in India28

2INTRODUCTION TO THE COMPANY30

2.1Overview of ICICI Bank30

2.2HISTORY OF ICICI BANK31

2.3VISION40

2.4MISSION40

2.5Senior Debt & Deposit Ratings of ICICI Bank Ltd.44

2.6ICICI GROUP46

2.7HUMAN RESOURCES53

2.8NFORMATION TECHNOLOGY55

2.9RECOGNITION & AWARDS56

2.10ORGANISATIONAL STRUCTURE58

2.11ICICI BANK PRODUCTS & SERVICES60

2.12RETAIL BANKING BUSINESS OF ICICI BANK63

2.13

2.13.1

2.13.2

2.13.3

2.13.4

2.13.5RETAIL BANKING OPERATIONS PROCEDURES OF ICICI BANK66

Process related with cash67

ANTI MONEY LAUNDERING72

OPERATIONS73

FOREX86

Self assessment of Bank89

2.14Comparative Analysis of ICICI BANK with SBI BANK91

3RESEARCH METHODOLOGY95

3.1TITLE OF THE PROJECT STUDY96

3.2DURATION OF THE PROJECT96

3.3OBJECTIVES97

3.4RESEARCH DESIGN97

3.5SAMPLING TECHNIQUE98

3.6Scope of the study102

3.7LIMITATIONS OF THE RESEARCH102

4FACTS AND NDINGS104

5SWOT Analysis119

6CONCLUSIONS123

7RECOMMENDATION & SUGGESTION125

8APPENDIX130

9BIBLIOGRAPHY136

1INTRODUCTION TO INDIAN BANKING INDUSTRIES

1. INTRODUCTION TO INDIAN BANKING INDUSTRIES1.1 Introduction

The banking section will navigate through all the aspects of the Banking System in India. It will discuss upon the matters with the birth of the banking concept in the country to new players adding their names in the industry in coming few years.

The banker of all banks, Reserve Bank of India (RBI), the Indian Banks Association (IBA) and top 20 banks like IDBI, HSBC, ICICI, ABN AMRO, etc. has been well defined under three separate heads with one page dedicated to each bank.

However, in the introduction part of the entire banking cosmos, the past has been well explained under three different heads namely:

History of Banking in India

Nationalization of Banks in India

Scheduled Commercial Banks in India

The first deals with the history part since the dawn of banking system in India. Government took major step in the 1969 to put the banking sector into systems and it nationalized 14 private banks in the mentioned year. This has been elaborated in Nationalization Banks in India. The last but not the least explains about the scheduled and unscheduled banks in India. Section 42 (6) (a) of RBI Act 1934 lays down the condition of scheduled commercial banks. 1.2 History of Banking in India

Without a sound and effective banking system in India it cannot have a healthy economy. The banking system of India should not only be hassle free but it should be able to meet new challenges posed by the technology and any other external and internal factors.

For the past three decades India's banking system has several outstanding achievements to its credit. The most striking is its extensive reach. It is no longer confined to only metropolitans or cosmopolitans in India. In fact, Indian banking system has reached even to the remote corners of the country. This is one of the main reason of India's growth process.

The government's regular policy for Indian bank since 1969 has paid rich dividends with the nationalization of 14 major private banks of India. Not long ago, an account holder had to wait for hours at the bank counters for getting a draft or for withdrawing his own money. Today, he has a choice. Gone are days when the most efficient bank transferred money from one branch to other in two days. Now it is simple as instant messaging or dials a pizza. Money has become the order of the day.

The first bank in India, though conservative, was established in 1786. From 1786 till today, the journey of Indian Banking System can be segregated into three distinct phases. They are as mentioned below:

Early phase from 1786 to 1969 of Indian Banks

Nationalization of Indian Banks and up to 1991 prior to Indian banking sector Reforms.

New phase of Indian Banking System with the advent of Indian Financial & Banking Sector Reforms after 1991.

To make this write-up more explanatory, I prefix the scenario as Phase I, Phase II and Phase III.

Phase Ithe General Bank of India was set up in the year 1786. Next came Bank of Hindustan and Bengal Bank. The East India Company established Bank of Bengal (1809), Bank of Bombay (1840) and Bank of Madras (1843) as independent units and called it Presidency Banks. These three banks were amalgamated in 1920 and Imperial Bank of India was established which started as private shareholders banks, mostly Europeans shareholders.

In 1865 Allahabad Bank was established and first time exclusively by Indians, Punjab National Bank Ltd. was set up in 1894 with headquarters at Lahore. Between 1906 and 1913, Bank of India, Central Bank of India, Bank of Baroda, Canara Bank, Indian Bank, and Bank of Mysore were set up. Reserve Bank of India came in 1935.

During the first phase the growth was very slow and banks also experienced periodic failures between 1913 and 1948. There were approximately 1100 banks, mostly small. To streamline the functioning and activities of commercial banks, the Government of India came up with The Banking Companies Act, 1949 which was later changed to Banking Regulation Act 1949 as per amending Act of 1965 (Act No. 23 of 1965). Reserve Bank of India was vested with extensive powers for the supervision of banking in India as the Central Banking Authority.

During those days public has lesser confidence in the banks. As an aftermath deposit mobilization was slow. Abreast of it the savings bank facility provided by the Postal department was comparatively safer. Moreover, funds were largely given to traders.

Phase IIGovernment took major steps in this Indian Banking Sector Reform after independence. In 1955, it nationalized Imperial Bank of India with extensive banking facilities on a large scale especially in rural and semi-urban areas. It formed State Bank of India to act as the principal agent of RBI and to handle banking transactions of the Union and State Governments all over the country.

Seven banks forming subsidiary of State Bank of India was nationalized in 1960 on 19th July, 1969, major process of nationalization was carried out. It was the effort of the then Prime Minister of India, Mrs. Indira Gandhi. 14 major commercial banks in the country was nationalized.

Second phase of nationalization Indian Banking Sector Reform was carried out in 1980 with seven more banks. This step brought 80% of the banking segment in India under Government ownership.

The following are the steps taken by the Government of India to Regulate Banking Institutions in the Country: 1949: Enactment of Banking Regulation Act.

1955: Nationalization of State Bank of India.

1959: Nationalization of SBI subsidiaries.

1961: Insurance cover extended to deposits.

1969: Nationalization of 14 major banks.

1971: Creation of credit guarantee corporation.

1975: Creation of regional rural banks.

1980: Nationalization of seven banks with deposits over 200 crore.

After the nationalization of banks, the branches of the public sector bank India rose to approximately 800% in deposits and advances took a huge jump by 11,000%.

Banking in the sunshine of Government ownership gave the public implicit faith and immense confidence about the sustainability of these institutions.

Phase IIIThis phase has introduced many more products and facilities in the banking sector in its reforms measure. In 1991, under the chairmanship of M Narasimham, a committee was set up by his name which worked for the liberalization of banking practices.The country is flooded with foreign banks and their ATM stations. Efforts are being put to give a satisfactory service to customers. Phone banking and net banking is introduced. The entire system became more convenient and swift. Time is given more importance than money.

The financial system of India has shown a great deal of resilience. It is sheltered from any crisis triggered by any external macroeconomics shock as other East Asian Countries suffered. This is all due to a flexible exchange rate regime, the foreign reserves are high, the capital account is not yet fully convertible, and banks and their customers have limited foreign exchange exposure.

1.3 Nationalization of Banks in India

The nationalization of banks in India took place in 1969 by Mrs. Indira Gandhi the then prime minister. It nationalized 14 banks then. These banks were mostly owned by businessmen and even managed by them.

Central Bank of India

Bank of Maharashtra

Dena Bank

Punjab National Bank

Syndicate Bank

Canara Bank

Indian Bank

Indian Overseas Bank

Bank of Baroda

Union Bank

Allahabad Bank

United Bank of India

UCO Bank

Bank of India

Before the steps of nationalization of Indian banks, only State Bank of India (SBI) was nationalized. It took place in July 1955 under the SBI Act of 1955. Nationalization of Seven State Banks of India (formed subsidiary) took place on 19th July, 1960.

The State Bank of India is India's largest commercial bank and is ranked one of the top five banks worldwide. It serves 90 million customers through a network of 9,000 branches and it offers -- either directly or through subsidiaries -- a wide range of banking services

The second phase of nationalization of Indian banks took place in the year 1980. Seven more banks were nationalized with deposits over 200 crores. Till this year, approximately 80% of the banking segment in India was under Government ownership.

After the nationalization of banks in India, the branches of the public sector banks rose to approximately 800% in deposits and advances took a huge jump by 11,000%.

1955 : Nationalization of State Bank of India.

1959 : Nationalization of SBI subsidiaries.

1969 : Nationalization of 14 major banks.

1980 : Nationalization of seven banks with deposits over 200 crores.1.4 Scheduled Commercial Banks In IndiaThe commercial banking structure in India consists of: Scheduled Commercial Banks in India

Unscheduled Banks in India

Scheduled Banks in India constitute those banks which have been included in the Second Schedule of Reserve Bank of India (RBI) Act, 1934. RBI in turn includes only those banks in this schedule which satisfy the criteria laid down vide section 42 (6) (a) of the Act.

As on 30th June, 1999, there were 300 scheduled banks in India having a total network of 64,918 branches. The scheduled commercial banks in India comprise of State bank of India and its associates (8), nationalized banks (19), foreign banks (45), private sector banks (32), co-operative banks and regional rural banks.

"Scheduled banks in India" means the State Bank of India constituted under the State Bank of India Act, 1955 (23 of 1955), a subsidiary bank as defined in the State Bank of India (Subsidiary Banks) Act, 1959 (38 of 1959), a corresponding new bank constituted under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970), or under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980), or any other bank being a bank included in the Second Schedule to the Reserve Bank of India Act, 1934 (2 of 1934), but does not include a co-operative bank".

The following are the Scheduled Banks in India (Public Sector):

State Bank of India State Bank of Bikaner and Jaipur State Bank of Hyderabad

State Bank of Indore State Bank of Mysore State Bank of Saurashtra

State Bank of Travancore Andhra Bank Allahabad Bank

Bank of Baroda Bank of India Bank of Maharashtra

Canara Bank Central Bank of India Corporation Bank

Dena Bank Indian Overseas Bank Indian Bank

Oriental Bank of Commerce Punjab National Bank Punjab and Sind Bank

Syndicate Bank Union Bank of India United Bank of India

UCO Bank Vijaya Bank

The following are the Scheduled Banks in India (Private Sector): ING Vysya Bank Ltd

Axis Bank Ltd

Indusind Bank Ltd

ICICI Bank Ltd

South Indian Bank

HDFC Bank Ltd

Centurion Bank Ltd

Bank of Punjab Ltd

IDBI Bank Ltd

The following are the Scheduled Foreign Banks in India: American Express Bank Ltd.

ANZ Gridlays Bank Plc.

Bank of America NT & SA

Bank of Tokyo Ltd.

Banquc Nationale de Paris

Barclays Bank Plc

Citi Bank N.C.

Deutsche Bank A.G.

Hongkong and Shanghai Banking Corporation

Standard Chartered Bank.

The Chase Manhattan Bank Ltd.

Dresdner Bank AG.

"Non-scheduled bank in India" means a banking company as defined in clause (c) of section 5 of the Banking Regulation Act, 1949 (10 of 1949), which is not a scheduled bank". The Indian Banking market is growing at an astonishing rate, with Assets expected to reach US$1 trillion by 2010. An expanding economy, middle class, and technological innovations are all contributing to this growth. The countrys middle class accounts for over 320 million people. In correlation with the growth of the economy, rising income levels, increased standard of living, and affordability of banking products are promising factors for continued expansion.

The Indian Banking Industry is in the middle of an IT revolution, Focusing on the expansion of Retail and rural Banking. Players are becoming increasingly customer - centric in their approach, which has resulted in innovative methods of offering new Banking products and services. Banks are now realizing the importance of being a big player and are beginning to focus their attention on mergers and acquisitions to take advantage of economies of scale and/or comply with Basel II regulation. Indian Banking industry assets are expected to reach US$1 trillion by 2010 and are poised to receive a greater infusion of foreign capital, says Prathima Rajan, analyst in Celents banking group and author of the report. 1.5 Retail Banks or Commercial BankCommercial Banks provide products & activities dealing directly with individuals, small businesses & Corporate. It is the term used for a normal Bank to distinguish it from an Investment Bank & is what people normally call a Bank".

In some English-speaking countries outside North America, the term "Trading Bank" is used to denote a commercial Bank .A Commercial Bank undertakes the following functional roles:

Raises funds by collecting deposits from businesses and consumers via checkable deposits, savings deposits, and time (or term) deposits

Makes loans to businesses and consumers

Trades in Corporate bonds and Government bonds Its primary liabilities are deposits and primary assets are loans and bonds

It can be further subdivided into

- A Retail Banking Division-that deals directly with individual consumers and

Small businesses

-Commercial Divisions that deal with Corporations or large businesses.SOME NAMES OF BANKS THAT PROVIDES RETAIL BANKING SERVICESState Bank Of IndiaICICI Bank

Punjab National BankHDFC Bank

ING Vyasa BankSyndicate Bank

Axis BankAndhra Bank

Centurion Bank of Punjab Bank of America

HSBCIndian Bank

I D B I (Industrial Development Bank of India)Canara Bank

Central Bank of IndiaIndian Overseas Bank

Deutsche BankJammu & Kashmir Bank Ltd.

Saraswat Co-Operative Bank Ltd.Union Bank of India

Uco BankStd chartered Bank

1.6 The regulatory body: rbi (RESERVE BANK OF INDIA)

1.6.1 IntroductionThe Reserve Bank of India (RBI) is the central bank of India, and was established on April 1, 1935 in accordance with the provisions of the Reserve Bank of India Act, 1934. The Central Office is located at Mumbai since inception. Though originally privately owned, since nationalization in 1949, RBI is fully owned by the Government of India. It was inaugurated with a share capital of Rs. 5 Crore divided into shares of Rs. 100 each fully paid up. The entire share was firstly owned by private shareholders.

RBI is governed by a central board (board headed by a governor) appointed by the Central Government of India. The current governor of RBI is Dr. D Subbarao. RBI has 22 regional offices across India. The reserve bank of India was nationalised in tthe year 1949.

RBI is the apex banking institution in India. RBI is an autonomous body promoted by the government of India and is headquartered at Mumbai. The RBI plays a key role in the management of the treasury foreign exchange movements and is also the primary regulator for banking and non-banking financial institutions. 1.6.2 Major Functions Of RBI

The functions are classified into three heads.A) Traditional functionsB) Promotional functions andC) Supervisory functions

A) Traditional functions

The Department attends to the core (central part) statutory function of note and coin issue and currency management. This involves forecasting the demand for fresh notes and coins. The Department reviews various security features of the currency notes for incorporation in the notes from time to time. It studies the features of the forged (artificial) notes detected and seized with a view to determining the steps needed to be taken to strengthen the integrity of the notes. The Department also acts as a nodal Department for the Bharatiya Reserve Bank Note Mudran Ltd.1.Monopoly of currency notes issue2.Banker to the Government(both the central and state)3.Agent and advisor to the Government4.Banker to the bankers5.Acts as the clearing house of the country6.Lender of the last resort7.Custodian of the foreign exchange reserves8.Maintaining the external value of domestic currency9.Controller of forex and credit10.Ensures the internal value of the currency11.Publishes the Economic statistical data12.Fight against economic crisis and ensures stability of Indian economy.

B) Promotional functions

With economic growth assuming a new urgency since Independence, the range of the Reserve Banks 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 RBI was asked to promote banking habit, extend banking facilities to rural and semi-urban areas, and establish and promote new specialized financing agencies. 1.Promotion of banking habit and expansion of banking systems.2.Provides refinance for export promotion3.Expansion of the facilities for the provision of the agricultural credit through NABARD4.Extension of the facilities for the small scale industries5.Helping the Co-operative sectors.6.Prescribe the minimum statutory requirement.7.Innovating the new banking business transactions.C) Supervisory functionsThe 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 asset, management and methods of working, amalgamation, reconstruction, and liquidation. The RBI is authorized to carry out periodical inspections of banks and to call for returns and necessary information from them. 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.

1. Granting license to Banks.2. Inspects and makes enquiry or determine position in respect of matters under various sections of RBI and Banking regulations3. Implements Deposit insurance scheme4.Periodical review of the work of the commercial banks5.Giving directives to commercial banks6.Control the non-banking finance corporation7.Ensuring the health of financial system through on-site and off-site verification.These are all the functions which are protective to the Indian Economy, thats why RBI is considered as the head of all banks

1.7 RETAIL BANKING-THE NEW FLAVOR

1.7.1 The Concept of Retail Banking:-

The Retail Banking encompasses deposit and assets linked products as well as other financial services offered to individual for personal consumption. Generally, the pure Retail Banking is conceived to be the provision of mass Banking products and services to private individuals as opposed to wholesale banking which focuses on corporate clients.

Over the years, the concept of Retail Banking has been expanded to include in many cases the services provided to small and medium sized businesses. Some Banks in Europe even include their private Banking business i.e. services to high net worth individuals in their Retail Banking portfolio.

The concept of Retail Banking is not new to Banks. It is only now that it is being viewed as an attractive market segment, which offers opportunities for growth with profits.

The diversified portfolio characteristic of Retail Banking gives better comfort and spreads the essence of Retail Banking lies in individual customers.

Though the term Retail Banking and Retail lending are often used synonymously, yet the later is lust one side of Retail Banking. In Retail Banking, all the Banking needs of individual customers are taken care of in an integrated manner.

1.7.2 RETAIL BANKING Products

Retail Banking Products for Depositors:-

Retail banking products for depositors in various segments of customers like; children, salaried persons, Senior citizens, professionals, technocrats business men, Retail traders and farmers etc. include:

a. Flexi deposit Accounts

b. Savings Bank Accounts

c. Recurring Deposit Accounts

d. Short Term Deposits

e. Deferred pension Linked Deposit Schemes

Today pure deposit type products are giving way to multi-benefit, multi-access genres of banking products. Most of the innovation is taking place in saving Bank accounts to make the meager return of 3.5% p.a. that they earn, more attractive.

Most of the Banks now offer Sweep in and sweep out account, called 2-in-1 accounts or value added savings Bank accounts. This account is a combination of savings Bank and term deposit accounts and offers twin benefit of liquidity of a savings Bank account and higher interest earning of term deposit accounts.

Retail lending productsI. Housing Loans

II. Loan for Consumer goods

III. Personal Loans for marriage, honeymoon,

medical treatment and holding etc.

IV. Education Loans

V. Auto Loans

VI. Gold Loans

VII. Event Loans

VIII. Festival Loans

IX. Insurance Products

X. Loan against Rent receivables

XI. Loan against Pension receivables to senior citizens

XII. Debit and Credit Cards

XIII. Global and International Cards

XIV. Loan to Doctors to set up their own Clinics or for purchase of medical equipments

XV. Loan for Woman Empowerment for the Setting up of boutiques

Setting up of beauty parlors

Setting up of crches

Setting up of flower shops

For making jaipuri quilts etc.

Preparation and supply of Food Tiffins

XVI. Loan for purchase of acoustic enclosures for Diesel Gen. Sets etc

Other Retail Banking Services:-

1. Payment of utility bills like water, electricity, telephone and mobile phone bills

2. Payment of insurance premiums on due dates

3. Payment of monthly/quarterly education fee of children to their respective schools

4. Remittance of funds from one account to another

5. Demating of shares, bonds, debentures, and mutual funds

6. Payment of credit card bills on due dates

7. Last but not the least, the filing of income tax returns and payment of income tax

1.7.3 Add-ons and Freebies:-

To make their products and services more service more attractive so as to woo Maximum number of customers, the Banks are vying with each other with whole lot off Frills, goodies, freebies are as under:

1. Free collection of specified number of outstation instruments

2. Instant credit of outstanding cheques up to Rs.15000/-

3. Concession in exchange on demand drafts and pay-orders and commission on bills of exchange

4. Issuance of free personalized cheques books

5. Free issuance of ATM, Debit, Credit and add-on Cards.

6. Free investment advisory services

7. Grant of redeemable reward points on use of credit cards

8. Free internet Banking, phone Banking and any where Banking facilities

9. Issuance of discount coupons for purchase of various products like computer accessories, music CDs, cassettes, books, toys, garments etc.

10. Last but not the least, issuance of free PVR, Trade Fair tickets etc. etc.

11. Concession in rate of interest on Group advances

12. Exemption in upfront fees

These concessions, freebies and add-ons are based on the True Relationship Value of customers and is calculated by the return on various products and services of the Banks availed by them. These concessions and freebies are usually offered for purchase of consumer goods but now they have become an integral part of Retail Banking products and services also.

1.8 Fact Files of Banks in India:

The first bank in India to be given an ISO CertificationCanara Bank

The first bank in Northern India to get ISO 9002 certification for their selected branchesPunjab and Sind Bank

The first Indian bank to have been started solely with Indian capitalPunjab National Bank

The first among the private sector banks in Kerala to become a scheduled bank in 1946 under the RBI ActSouth Indian Bank

India's oldest, largest and most successful commercial bank, offering the widest possible range of domestic, international and NRI products and services, through its vast network in India and overseasState Bank of India

India's second largest private sector bank and is now the largest scheduled commercial bank in IndiaThe Federal Bank Limited

Bank which started as private shareholders banks, mostly Europeans shareholdersImperial Bank of India

The first Indian bank to open a branch outside India in London in 1946 and the first to open a branch in continental Europe at Paris in 1974Bank of India, founded in 1906 in Mumbai

The oldest Public Sector Bank in India having branches all over India and serving the customers for the last 132 yearsAllahabad Bank

The first Indian commercial bank which was wholly owned and managed by IndiansCentral Bank of India

Bank of India was founded in 1906 in Mumbai. It became the first Indian bank to open a branch outside India in London in 1946 and the first to open a branch in continental Europe at Paris in 1974.

2INTRODUCTION TO THE COMPANYICICI BANK PROFILE2.1 OVERVIEW

ICICI Bank is India's second-largest Bank with total assets of Rs. 3,997.95 billion at March 31, 2008 and profit after tax of Rs. 41.58 billion for the year ended March 31, 2008. ICICI Bank is second amongst all the companies listed on the Indian stock exchanges in terms of free float market capitalization. ICICI Bank is Indias no.1 private sector Bank. The Bank has a network of about 1,308 branches and 3,950 ATMs in India and presence in 18 countries.

ICICI Bank offers a wide range of Banking products and financial services to corporate and Retail customers through a variety of delivery channels and through its specialized subsidiaries and affiliates in the areas of investment Banking, life and non-life insurance, venture capital and asset management.

The Bank currently has subsidiaries in the United Kingdom, Russia and Canada, branches in Unites 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. Banks UK subsidiary has established branches in Belgium and Germany.

ICICI Banks equity shares are listed in India on Bombay Stock Exchange and the National Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE).

2.2 HISTORY OF ICICI BANKICICI 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 Banks acquisition of Bank of Madura Limited in an all-stock amalgamation in fiscal 2001, and secondary market sales by ICICI to institutional investors in fiscal 2001 and fiscal 2002. ICICI was formed in 1955 at the initiative of the World Bank, the Government of India and representatives of Indian industry. The principal objective was to create a development financial institution for providing medium-term and long-term project financing to Indian businesses. In the 1990s, ICICI transformed its business from a development financial institution offering only project finance to a diversified financial services group offering a wide variety of products and services, both directly and through a number of subsidiaries and affiliates like ICICI Bank. In 1999, ICICI become the first Indian company and the first Bank or financial institution from non-Japan Asia to be listed on the NYSE.

After consideration of various corporate structuring alternatives in the context of the emerging competitive scenario in the Indian Banking industry, and the move towards universal Banking, the managements of ICICI and ICICI Bank formed the view that the merger of ICICI with ICICI Bank would be the optimal strategic alternative for both entities, and would create the optimal legal structure for the ICICI group's universal Banking strategy. The merger would enhance value for ICICI shareholders through the merged entity's access to low-cost deposits, greater opportunities for earning fee-based income and the ability to participate in the payments system and provide transaction- Banking services. The merger would enhance value for ICICI Bank shareholders through a large capital base and scale of operations, seamless access to ICICI's strong corporate relationships built up over five decades, entry into new business segments, higher market share in various business segments, particularly fee-based services, and access to the vast talent pool of ICICI and its subsidiaries. In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger of ICICI and two of its wholly-owned Retail finance subsidiaries, ICICI Personal Financial Services Limited and ICICI Capital 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 Ahmadabad 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.

1955 : The Industrial Credit and Investment Corporation of India Limited (ICICI) incorporated at the initiative of the World Bank, the Government of India and representatives of Indian industry, with the objective of creating a development financial institution for providing medium-term and long-term project financing to Indian businesses. Mr.A.Ramaswami Mudaliar elected as the first Chairman of ICICI Limited.

: ICICI emerges as the major source of foreign currency loans to Indian industry. Besides funding from the World Bank and other multi-lateral agencies, ICICI was also among the first Indian companies to raise funds from international markets.

1956 :ICICI declared its first dividend of 3.5%.

1958 :Mr.G.L.Mehta appointed the second Chairman of ICICI Ltd.

1960 :ICICI building at 163, Backbay Reclamation, inaugurated.

1961 :The first West German loan of DM 5 million from Kredianstalt obtained.

1967 :ICICI made its first debenture issue for Rs.6 crore, which was oversubscribed.

1969 :The first two regional offices in Calcutta and Madras set up.

1972 :The second entity in India to set up merchant banking services.

: Mr. H. T. Parekh appointed the third Chairman of ICICI.

1977 : ICICI sponsored the formation of Housing Development Finance Corporation. Managed its first equity public issue

1978 :Mr. James Raj appointed the fourth Chairman of ICICI.

1979 :Mr.Siddharth Mehta appointed the fifth Chairman of ICICI.

1982 : 1982 : ICICI became the first ever Indian borrower to raise European Currency Units.

: ICICI commences leasing business.

1984 :Mr. S. Nadkarni appointed the sixth Chairman of ICICI.

1985 :Mr. N.Vaghul appointed the seventh Chairman and Managing Director of ICICI.

1986 : ICICI became the first Indian institution to receive ADB Loans.

:ICICI, along with UTI, set up Credit Rating Information Services of India Limited, India's first professional credit rating agency.

:ICICI promotes Shipping Credit and Investment Company of India Limited.

:The Corporation made a public issue of Swiss Franc 75 million in Switzerland, the first public issue by any Indian entity in the Swiss Capital Market.

1987 : ICICI signed a loan agreement for Sterling Pound 10 million with Commonwealth Development Corporation (CDC), the first loan by CDC for financing projects in India.

1988 : Promoted TDICI - India's first venture capital company.

1993 : ICICI Securities and Finance Company Limited in joint venture with J. P. Morgan set up.

: ICICI Asset Management Company set up.

1994 : ICICI Bank set up.

1996 : ICICI Ltd became the first company in the Indian financial sector to raise GDR.

: SCICI merged with ICICI Ltd.

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

1997 : ICICI Ltd was the first intermediary to move away from single prime rate to three-tier prime rates structure and introduced yield-curve based pricing.

:The name The Industrial Credit and Investment Corporation of India Ltd changed to ICICI Ltd.

: ICICI Ltd announced the takeover of ITC Classic Finance.

1998 : Introduced the new logo symbolizing a common corporate identity for the ICICI Group.

:ICICI announced takeover of Anagram Finance.

1999 :ICICI launched retail finance - car loans, house loans and loans for consumer durables.

:ICICI becomes the first Indian Company to list on the NYSE through an issue of American Depositary Shares.

2000 :ICICI Bank became the first commercial bank from India to list its stock on NYSE.

: ICICI Bank announces merger with Bank of Madura.

2001 : The Boards of ICICI Ltd and ICICI Bank approved the merger of ICICI with ICICI Bank.

2002 : ICICI Ltd merged with ICICI Bank Ltd to create Indias secondlargest bank in terms of assets.

: ICICI assigned higher than sovereign rating by Moodys.

:ICICI Bank launched Indias first CDO (Collateralised Debt Obligation) Fund named Indian Corporate Collateralised Debt Obligation Fund (ICCDO Fund).

:"E Lobby", a self-service banking centre inaugurated in Pune. It was the first of its kind in India.

:ICICI Bank launched Private Banking.

:1100-seat Call Centre set up in Hyderabad

:ICICI Bank Home Shoppe, the first-ever permanent aggregation and display of housing projects in the county, launched in Pune,

:ATM-on-Wheels, Indias first mobile ATM, launched in Mumbai.

2003 :The first Integrated Currency Management Centre launched in Pune.

:ICICI Bank announced the setting up of its first ever offshore branch in Singapore.

:Representative office set up in China. : ICICI Banks UK subsidiary launched.

:Indias first ever "Visa Mini Credit Card", a 43% smaller credit card in dimensions launched.

:ICICI Bank subsidiary set up in Canada.

:Temasek Holdings acquired 5.2% stake in ICICI Bank.

:ICICI Bank became the market leader in retail credit in India.

2004 :Max Money, a home loan product that offers the dual benefit of higher eligibility and affordability to a customer, introduced.

:Mobile banking service in India launched in association with Reliance Infocomm.

:Indias first multi-branded credit card with HPCL and Airtel launched.

:Kisan Loan Card and innovative, low-cost ATMs in rural India launched.

:ICICI Bank opened its 500th branch in India.

:ICICI Bank introduced partnership model wherein ICICI Bank would forge an alliance with existing micro finance institutions (MFIs). The MFI would undertake the promotional role of identifying, training and promoting the micro-finance clients and ICICI Bank would finance the clients directly on the recommendation of the MFI.

:ICICI Bank introduced 8-8 Banking wherein all the branches of the Bank would remain open from 8a.m. to 8 p.m. from Monday to Saturday.

:ICICI Bank introduced the concept of floating rate for home loans in India.

2005 :First rural branch and ATM launched in Uttar Pradesh at Delpandarwa, Hardoi.

:"Free for Life" credit cards launched wherein annual fees of all ICICI Bank Credit Cards were waived off.

:ICICI Bank and Visa jointly launched mChq a revolutionary credit card on the mobile phone.

:First Indian company to make a simultaneous equity offering of $1.8 billion in India, the United States and Japan.

:Acquired IvestitsionnoKreditny Bank of Russia.

:ICICI Bank became the largest bank in India in terms of its market capitalization.

:ICICI Bank became the first private entity in India to offer a discount to retail investors for its follow-up offer.

2006 :ICICI Bank became the first Indian bank to issue hybrid Tier-1 perpetual debt in the international markets.

:ICICI Bank subsidiary set up in Russia.

:Introduced a new product - NRI smart save Deposits a unique fixed deposit scheme for nonresident Indians.

:Representative offices opened in Thailand, Indonesia and Malaysia.

:ICICI Bank became the largest retail player in the market to introduce a biometric enabled smart card that allow banking transactions to be conducted on the field. A low-cost solution, this became an effective delivery option for ICICI Banks micro finance institution partners.

:Financial counseling centre Disha launched. Disha provides free credit counseling, financial planning and debt management services.

:Bhoomi puja conducted for a regional hub in Hyderabad, Andhra Pradesh.

2007 :ICICI Banks USD 2 billion 3-tranche international bond offering was the largest bond offering by an Indian bank.

:Sangli Bank amalgamated with ICICI Bank.

:ICICI Bank raised Rs 20,000 crore (approx $5 billion) from both domestic and international markets through a follow-on public offer.

:ICICI Banks GBP 350 million international bond offering marked the inaugural deal in the sterling market from an Indian issuer and also the largest deal in the sterling market from Asia.

:Launched Indias first ever jewellery card in association with jewelry major Gitanjali Group.

:ICICI Bank became the first bank in India to launch a premium credit card -- The Visa Signature Credit Card.

:Foundation stone laid for a regional hub in Gandhinagar, Gujarat.

:Introduced SME Toolkit, an online resource centre, to help small and medium enterprises start, finance and grow their business.

:ICICI Bank signed a multi-tranche dual currency US$ 1.5 billion syndication loan agreement in Singapore.

:ICICI Bank became the first private bank in India to offer both floating and fixed rate on car loans, commercial vehicles loans, construction equipment loans and professional equipment loans.

:In a first of its kind, nation wide initiative to attract bright graduate students to pursue a career in banking, ICICI Bank launched the "Probationary Officer Programme".

:Launched Bank@home services for all savings and current a/c customers residing in India

:ICICI Bank Eurasia LLC inaugurated its first branch at St Petersburg, Russia.

2008 :ICICI Bank enters US, launches its first branch in New York

:ICICI Bank enters Germany, opens its first branch in Frankfurt

:ICICI Bank launched iMobile, a breakthrough innovation in banking where practically all internet banking transactions can now be simply done on mobile phones.

:ICICI Bank concluded India's largest ever securitization transaction of a pool of retail loan assets aggregating to Rs. 48.96 billion (equivalent of USD 1.21 billion) in a multi-tranche issue backed by four different asset categories. It is also the largest deal in Asia (ex-Japan) in 2008 till date and the second largest deal in Asia (ex-Japan & Australia) since the beginning of 2007.

:ICICI Bank launches ICICIACTIVE - Banking Interactive Service - along with DISHTV, which will allow viewers to see information about the Bank's products and services and contact details on their DISHTV screens.

:ICICI Bank and British Airways launch co-branded credit card, which is designed to earn accelerated reward points to the card holders with every British Airways flight or by spending on everyday purchases

:ICICI Bank Board appoints Mr K. V. Kamath as non-executive Chairman and Ms Chanda Kochhar as Managing Director & CEO effective May 1, 2009, while the existing non-executive Chairman Mr N Vaghul retires after completing his term on April 30, 2009

2.3 VISION

To be the leading provider of financial services in India and a major global Bank.

The ICICI Group was formed with the objective of supporting Indias growth and development. While It has transformed from a development Bank to a diversified financial services group, this vision continues to form the core of all they do. Bank partner the growth of Indian business and help individuals improves their quality of life, through convenient access to financial products and services. In addition to financial services, it supports initiatives for socio-economic development through Projects focused on healthcare, education and access to markets.Bank seeks to improve access to opportunity, and the ability to make the most of it, for businesses and individuals - to help people move towards a better life.

2.4 MISSION be the Banker of first choice for our customers by delivering high quality, world-class products and services.

Expand the frontiers of our business globally.

Play a proactive role in the full realization of Indias potential.

maintain a healthy financial profile and diversify our earnings across businesses and

geographies.

Maintain high standards of governance and ethics.

Contribute positively to the various countries and markets in which we operate.

create value for our stakeholdersSTRATEGY OF THE ICICI BANK

Strategy-1. Identify and support projects and programmes that are within its focus areas and,

( have a large- scale and measurable impact

( are replicable in a cost effective manner; and

( are time bound.

2. Identify and support pilot projects within its focus areas.

3. Contribute towards improving the efficacy of assisted organizations through:

( capacity building

( providing access to research and information; and providing platforms for an

effective exchange of ideas, thoughts and experiences.

Board MembersMr. N. Vaghul, Chairman

Mr. Sridar Iyengar

Mr. Lakshmi N. Mittal

Mr. Narendra Murkumbi

Dr. Anup K. Pujari

Mr. Anupam Puri

Mr. M.K. Sharma

Mr. P.M. Sinha

Prof. Marti G. Subrahmanyam

Mr. T.S. Vijayan

Mr. V. Prem Watsa

Mr. K.V. Kamath, Managing Director & CEO

Ms. Chanda Kochhar, Joint Managing Director & Chief Financial Officer

Mr. V. Vaidyanathan, Executive Director

Mr. Sonjoy Chatterjee, Executive Director

Mr. K. Ramkumar, Executive Director

Board CommitteesAudit CommitteeBoard Governance & Remuneration Committee

Mr. Sridar IyengarMr. Narendra Murkumbi Mr. M. K. Sharma Mr. N. Vaghul Mr. Anupam PuriMr. M. K. Sharma Mr. P. M. Sinha Prof. Marti G. Subrahmanyam

Customer Service Committee Credit Committee

Mr. N. VaghulMr. Narendra MurkumbiMr. M.K. SharmaMr. P.M. SinhaMr. K. V. Kamath Mr. N. VaghulMr. Narendra Murkumbi Mr. M .K. SharmaMr. P. M. SinhaMr. K. V. Kamath

Fraud Monitoring CommitteeRisk Committee

Mr. M. K. SharmaMr. Narendra Murkumbi Mr. K. V. Kamath Ms. Chanda D. KochharMr. V. Vaidyanathan Mr. N. VaghulMr. Sridar IyengarProf. Marti G. SubrahmanyamMr. V. Prem Watsa Mr. K. V. Kamath

Share Transfer & Shareholders'/ Investors' Grievance CommitteeAsset-Liability Management Committee

Mr. M. K. SharmaMr. Narendra MurkumbiMs. Chanda D. KochharMs. Chanda D. Kochhar Mr. Sonjoy ChatterjeeMr. V. Vaidyanathan

Committee of Directors

Mr. K. V. KamathMs. Chanda D. KochharMr. V. Vaidyanathan Mr. Sonjoy ChatterjeeMr. K. Ramkumar

2.5 Senior Debt & Deposit Ratings of ICICI Bank LimitedAgencyIndiaICICI Bank Limited

Moody'sFC - Long TermBaa2Baa2

S & PFC - Long TermBBB-BBB-

FC - Short TermA-3A-3

JCRAFC - Long TermBBB+BBB+

CARERupee - Long TermCare - AAA

Fixed Deposits Care - AAA

Rupee - Short TermPR1+

ICRARupee - Long TermLAAA

Term DepositMAAA

Rupee - Short TermA1+

Moody's: Moody's Investor ServicesS & P: Standard & PoorsJCRA: Japan Credit Rating AgencyCARE: Credit Analysis & Research Limited, IndiaICRA: ICRA Limited, India FC: Foreign Currency2.6 ICICI GROUP

ICICI Prudential Life Insurance Company (ICICI Prudential Life) continued to maintain its market leadership among private sector life insurance companies with a retail market share of30% in the private sector as of Dec 06 (on weighted received premium basis). Life insurance companies worldwide make losses in the initial years, in view of business set-up and customer acquisition costs in the initial years as well as reserving for actuarial liability.

ICICI Lombard General Insurance Company (ICICI Lombard) enhanced its leadership Position among private sector general insurance companies with a market share of around36% in the private sector as of Dec 06. The retail and other non-corporate businesses are about two-thirds of the total business, and its profit after tax for the 9MFY07 was about

Rs.0.49bn.

Prudential ICICI Asset Management Company (Prudential ICICI AMC) is one of the largest mutual funds in India with assets under management of Rs333.5bn as on Dec 31, 2006.Prudential ICICI AMC achieved a profit after tax of Rs.0.31bn in fiscal 2006 compared toRs.0.17bn in fiscal 2005

ICICI Securities continued to enhance its position in the investment banking and equity Broking businesses while capitalizing on opportunities in the fixed income market. ICICI Securities achieved a profit after tax of Rs.1.6bn in fiscal 2006 compared to Rs.0.64bn in Fiscal 2005.

ICICI Venture Funds Management Company Limited (ICICI Venture) raised two funds and strengthened its leadership position in private equity in India, with funds under management of over Rs.63bn. ICICI Venture achieved a profit after tax of Rs.0.50bn in fiscal 2006compared to Rs.0.32bn in fiscal 2005.SUBSIDARY COMPANIES

At March 31, 2008, ICICI Bank had 17 subsidiaries as listed below:

DOMESTIC SUBSIDERIES

INTERNATIONAL SUBSIDARIES

1. Subsidiary of ICICI Bank Canada.

2. Subsidiary of ICICI Securities Limited.

3. Subsidiary of ICICI Securities Holdings Inc.

2.6.1 ICICI prudential life insurance companyICICI Prudential Life Insurance Company is a joint venture between ICICI Bank - one of India's foremost financial services companies-and Prudential plc - a leading international financial services group headquartered in the United Kingdom. Total capital infusion stands at Rs. 47.80 billion, with ICICI Bank holding a stake of 74% and Prudential plc holding 26%.

We began our operations in December 2000 after receiving approval from Insurance Regulatory Development Authority (IRDA). Today, our nation-wide team comprises of over 2100 branches (inclusive of 1,116 micro-offices), over 290,000 advisors; and 18 bancassurance partners.

ICICI Prudential is the first life insurer in India to receive a National Insurer Financial Strength rating of AAA (Ind) from Fitch ratings. For three years in a row, ICICI Prudential has been voted as India's Most Trusted Private Life Insurer, by The Economic Times - AC Nielsen ORG Marg survey of 'Most Trusted Brands'. As we grow our distribution, product range and customer base, we continue to tirelessly uphold our commitment to deliver world-class financial solutions to customers all over India.

2.6.2 ICICI Securities

ICICI Securities Ltd is the largest equity house in the country providing end-to-end solutions (including web-based services) through the largest non-banking distribution channel so as to fulfil 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.

With a full-service portfolio, a roster of blue-chip clients and performance second to none, we have a formidable reputation within the industry. Today ICICI Securities is among the leading Financial Institutions both on the institutional as well as retail side.Headquartered in Mumbai, I-Sec operates out of several locations in India.ICICI Securities Inc., the stepdown wholly owned US subsidiary of the company is a member of the National Association of Securities Dealers, Inc. (NASD). As a result of this membership, ICICI Securities Inc. can engage in permitted activities in the U.S. securities markets. These activities include Dealing in Securities and Corporate Advisory Services in the United States and providing research and investment advice to US investors.

ICICI Securities Inc. is also registered with the Financial Services Authority, UK (FSA) and the Monetary Authority of Singapore (MAS).

2.6.3 ICICI Securities Primary Dealership Ltd.ICICI Securities Primary Dealership Limited 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 mobilization 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.

The I-Sec PD desks trade actively in government securities, swaps and corporate bonds markets. In each of these markets, it enjoys dominant position, accounting for a significant share of trading turnover.

Innovation and insight in rate markets drive I-Sec PDs relationship with clients. We actively assist clients in providing interest rate structures to suit their objectives. I-Sec PD Sales team has developed a strong network of relationships covering institutional investors such as banks, mutual funds, insurance companies, provident funds and non-banking finance companies. These relationships are serviced by a wide distribution network with footprints across the country. The Capital Markets desks profound understanding of resource requirements of clients coupled with I-Sec PDs client relationships make us Arranger of choice.

I-Sec PD is also credited with pioneering debt market research in India. Our in-depth research and independent and well-considered market commentaries are widely read and acclaimed.

I-Sec PDs expertise and leadership position have been consistently recognised by domestic and international agencies. I-Sec PD has been recognized as the Best Domestic Bond House in India by Asiamoney for 2002, 2003, 2004, 2005 and 2007. It has also been awarded the prestigious Best Bond House by Financeasia.com for the years - 2001, 2004, 2005, 2006 and 2007. These awards are a strong testimony of our capabilities and continuing dominant position in the market.

2.6.4 ICICI Lombard General Insurance Company Limited

ICICI Lombard General Insurance Company Limited is a 74:26 joint venture between ICICI Bank Limited and the Canada based $ 26 billion Fairfax Financial Holdings Limited. ICICI Bank is India's second largest bank, while Fairfax Financial Holdings is a diversified financial corporate engaged in general insurance, reinsurance, insurance claims management and investment management.

Lombard Canada Ltd, a group company of Fairfax Financial Holdings Limited, is one of Canada's oldest property and casualty insurers. ICICI Lombard General Insurance Company received regulatory approvals to commence general insurance business in August 2001.

2.6.5 ICICI Prudential Asset Management Company

ICICI Prudential Asset Management Company enjoys the strong parentage of Prudential plc, one of UK's largest players in the insurance & fund management sectors and ICICI Bank, a well-known and trusted name in financial services in India. ICICI Prudential Asset Management Company, in a span of just over eight years, has forged a position of pre-eminence in the Indian Mutual Fund industry as one of the largest asset management companies in the country with average assets under management of Rs. 51,456.11 Crore (as of March 31, 2009). The Company manages a comprehensive range of schemes to meet the varying investment needs of its investors spread across 230 cities in the country.

2.6.6 ICICI VentureICICI 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 pharmaceuticals, Information Technology, media, manufacturing, logistics, textiles, real estate etc 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) and the first royalty-based structured deal in Pharma Research & Development (Dr Reddy2.7 HUMAN RESOURCES

ICICI BANK believes that it is imperative for industry in general and the financial services industry in particular, to invest in preparing industry-ready human talent to sustain its growth trajectory.During fiscal 2008, ICICI launched the Probationary Officer Programme. It was a first of its kind, nation wide initiative to provide a career opportunity to aspiring and bright graduates who would have otherwise been excluded from participating in the nations growth.

The ICICI Group collaborated with Manipal Universal learning to create the ICICI Manipal Academy for Banking & Insurance to generate inclusive employment opportunities for capable, young graduates. It offers a fully paid one-year residential training programme to more than 800 graduates who have been selected from across India through a rigorous process.

This one-year programme strives to increase efficiency and improve customer experience by enabling first day employee productivity through knowledge, skills and grooming inputs. It aims at integrating students into the ICICI Group ethos and work ethics.

Attempting to bridge the skills gap that exists in India and especially in the Banking industry, Bank launched the Branch Banking Academy, Wealth Management Academy and Sales Academy in fiscal 2008.

These academies have been launched with the premise that Banking skills can be created and extended to those who have the basic aptitude to learn. These job-linked, skill-enhancement academies are aimed at increasing the speed to job.

BANK has effectively deployed certified branch managers and branch operations managers for all our new branches within six months through the Branch Leadership Program.Banks training initiatives attempt to build relevant and standardized knowledge and skills that can be replicated and made accessible to its distributed employee network easily.

In fiscal 2008, Bank pioneered game-based learning and simulation in Banking. A branch Banking simulator and several game-based modules were created to provide virtual environments for skills practice and enhance the quality of service delivery.

In fiscal 2008, we explored mobile learning as a channel to provide performance support through instant learning. This channel, which is easily available to our entire front line sales team, strives towards resolving all customer queries and facilitates flawless sales closure.

ICICI Bank was recognized in the global list of Top Companies for Leaders in 2007, according to a survey conducted by Hewitt Associates in partnership with the RBL group and Fortune magazine. Banks in-house leadership development programme continues to build leadership talent within the organization.2.8 INFORMATION TECHNOLOGY

ICICI Bank continues to deploy technology for use in Banking. Continued focus on leveraging technology has resulted in process efficiencies and enhanced convenience for customers. The emphasis on an enterprise view of technology has led to an architecture that is highly aligned to the changing business environment.

During fiscal 2008, Bank has augmented its traditional channels with offerings on the mobile and self-service transaction capability. With a view to enhance customer convenience and provide services on a continuous and location independent basis, ICICI BANK has enabled financial transactions through mobile phones.

In order to strengthen decision making in its asset businesses, Bank has implemented the business rules engine concept during the last fiscal. The engine offers rule flows, decision tables, decision trees and score models for asset product applicants and hence eliminates subjectivity in decision-making, thereby limiting exposure risks.

The implementation of a comprehensive collections system has been another development in the Retail asset business. Operations in new branches in Germany and US have been enabled with standardized systems for Banking accounts, internet Banking and regulatory reporting.

To support the expansion of private Banking and wealth management businesses in overseas geographies, BANK has deployed a comprehensive private Banking system. This provides enhanced portfolio management tools and effective risk management capabilities for its overseas operations.

It has strengthened its security framework to include the mobile channel. Effective steps have been taken to control online security threats such as phishing, frauds and identity thefts. By adopting the transaction security system at ATMs, all ATM transactions are now end-to-end secure as per recommended industry standardsLocation

ICICI Bank has a network of about 573 branches and extension counters and over 2,000 ATMs.Awards & RecognitionsICICI Bank2007

CNBC Awaaz Consumer Awards 2007 for:Most Preferred brand for Auto LoansMost Preferred brand for Credit CardsMost Preferred brand for Financial Advisory ServicesMost Preferred brand for Home Loans.

Global Finance Awards for : The Best Consumer Internet Bank in India.The Best Corporate / Institutional Internet Bank in India.

ICICI Bank has won the Euromoney Award for the "Best Bank in Asia" and "Best Bank in India"

Asia's Best Financial Borrower 2007 - Euromoney

Best Bank in the New Private Sector Bank category By Financial Express.

Excellence in Remittance Business Award, 2007 from Asian Banker.

ICICI Bank has won the Readers Digest Trusted Brand Gold Award for the Bank category in India in 2007.

Awards & Recognitions

ICICI Bank

2006

Bank of the Year 2006 India by the Banker

THE ASSET TRIPLE AAA Awards for :

Best Transaction Bank in INDIA

Best Trade Finance in India

Best Domestic Custody in India

Business Standard's Banker of the Year for Mr.K.V.Kamath

CNBC-TV18 India Business Leader Award for Mr. K. V. Kamath

Business India's Best Bank of the Year 2006

Ms.Chanda Kochhar featured on Fortune's 50 Most Powerful Women in International Business.

NDTV Profit Business Leadership Award in the Banking category.

Ms. Kalpana Morparia and Ms. Lalita Gupte featured on Forbes Most Powerful Women

CII National Award for Energy Management

Business Baron - Most Admired Bank

Global Finance Award for World's Best Foreign Exchange Bank from India" and the "World's Best Trade Finance from India"

Global Finance Awards for :

Best Integrated Consumer Bank Site in Asia

Bill Presentment and Payment in Asia

Best Consumer Internet Bank in India

Best Corporate/ Institutional Internet Bank in India

ICICI Bank wins three awards for outstanding performance from Asian Banker

Best Retail Bank India

Excellence in Multi Channel Distribution

Excellence in Automobile Lending Award

Reader's Digest India - Most Trusted Brand Award for 2006 voted by consumers

Awards & Recognitions

ICICI Bank

2005

The Asian Banker Leadership Achievement Award 2005 for India forMr.K.V.Kamath

Businessman of the Year Award for Mr.K.V.Kamath by Business India

JRD Tata Corporate Leadership Award for Mr.K.V.Kamath

Best Local Cash Management Bank Overall for Domestic Cash Management Services - Asiamoney

Best Local Cash Management Bank for Most Innovative Cash Management Solutions - Asiamoney

Listed on Forbes' Asia's Fab 50

Listed in Business Week Top 50 Performers

Economic Times Award for Businesswoman Of The Year

Triple AAA Best Cash Management Country Award in India" by The Asset

Bank of the Year Award for India by The Banker

Best Bank in India by Euromoney

Best Integrated Consumer Bank Site in Asia by Global Finance

Best Consumer Internet Bank in India by Global Finance

Best Corporate / Institutional Internet Bank by Global Finance

Building Talent Enterprise-wise Award for Excellence in Learning from the American Society for Training and Development

Awards & Recognitions

ICICI Bank

2004

American Indian Foundation's Leadership for Social Entrepreneurship in India

"Best Bank in India" by Euromoney

"Best High-Yield Borrower in India" by Euromoney

"India's Most Customer Friendly Bank" by Outlook Money

"Best Bank" by Business India

"India Derivative House of the Year" by AsiaRisk

"Best Consumer Internet Bank in India" by Global Finance

"Best Corporate / Institutional Internet Bank in India" by Global Finance

"Most Challenging IT Implementation Award" for the ICICI Bank EAI project by PC Quest

"Best Domestic Commercial Bank" in India by Asiamoney

"Best Emerging Market Bank in India" by Global Finance

"Best Domestic Fx Bank in India" by Asiamoney Poll

"Best Bank of the Year in India" by Finance Asia

"Best Retail Bank in India" by Asian Banker

"Best Foreign Exchange Bank in India" by Global Finance

"India's Most Admired Private Sector Bank" by Business Barons

2.11 ICICI BANK PRODUCTS & SERVICES

DEPOSITS (dealt under RCLG GROUP) NRI SERVICES (dealt under RCLG GROUP)

Savings A/c

Special Savings A/c

Senior citizen services

Fixed deposits

Easy FD

Recurring Deposit

Private Banking

Roaming Current A/c

Young stars

Salary A/c

Women A/c

EEFC A/c

RFC A/c

Privilege Banking

No frills A/c

Outward remittances NRE Savings A/c

NRO Savings A/c

NRE Fixed Deposit

NRE Recurring Deposit

FCNR Fixed Deposit

RFC Savings A/c

INVESTMENT

ICICI Bank Bonds

GOI Bonds

Pure Gold

Foreign exchange services

Senior citizen savings scheme,2004

Mutual funds

IPO

MOBILE BANKING (dealt by service centre)

Bank A/c

Credit Card

Demat

Loans

CARDS (dealt under RCLG GROUP)

Credit Cards

Debit cum ATM Cards

Travel Cards

ONLINE SERVICES(dealt by service centre)LOANS ( DEALT UNDER RMAG AND RAPG)

Bill Payment

Shopping

Ticket booking

Prepaid mobile recharge

Smart money order

Card-2-Card-FT

Funds transfer

Share trading

charity

Home loans Personal loans

Car loans

Loan against securities

Farm equipment loans

Construction equipment loans

Medical equipment loans

Pre approved loans

Vehicle loan

DEMAT (THROUGH ICICI DIRECT)INSURANCE

Account opening

Speak to transfer

Digitally signed statement

Status of request LIFE INSURANCE

GENERAL INSURANCE

2.12 RETAIL BANKING BUSINESS OF ICICI BANKICICI BANK is among the first Banks to identify the growth potential of Retail credit in India. Between 2003 and 2006 the Banking system as a whole saw significant expansion of Retail credit, with Retail loans accounting for a major part of overall systemic credit growth. However, due to the increase in interest rates following inflationary pressures, Retail credit growth in the Banking system has moderated from about 30% over the last few years to about 1015% currently. At the same time, the Retail credit business requires a high level of credit and analytical skills and strong operations processes backed by technology.

BANKs Retail strategy is centered on a wide distribution network, comprising its branches and offices, direct marketing agents and dealer and real estate developer relationships; a comprehensive and competitive product suite; technology-enabled back-office processes; and a robust credit and analytical framework.ICICI Bank is the largest provider of Retail credit in India. Its total Retail portfolio was Rs. 1,316.63 billion at March 31, 2008, constituting 58% of our total loans at that date. During fiscal 2008, ICICI continued its focus on strengthening its Retail deposit franchise to create a stable funding base.

Its current and savings account (CASA) deposits as a percentage of total deposits increased from 22% at March 31, 2007 to 26% at March 31, 2008, with savings account deposits increasing by 36% during fiscal 2008. During the year, BANK has expanded its branch network substantially. At March 31, 2008, BANK had 1,262 branches & extension counters compared to 755 branches & extension counters at March 31, 2007, including the addition of about 200 branches through the merger of Sangli Bank. branch network has further increased to 1,367 as of May 31, 2008.ICICI Bank continued to expand its electronic channels, namely internet banking, mobile Banking, call centers , point of sale terminals and ATMs, and migrate customer transaction volumes to these channels. Bank increased ATM network to 3,881 ATMs at March 31, 2008 from 3,271 ATMs at March 31, 2007. Call centers have a total seating capacity of approximately 6,375 sales and service workstations. Transaction volumes on internet and mobile Banking have grown significantly, constituting an increasing percentage of total customer transactions. During the year, ICICI launched a mobile Banking service enabling a wide range of banking transactions using the mobile phone. Cross-selling new products and also the products of its life and general insurance subsidiaries to its existing customers is a key focus area for the Bank.Its branches and other channels are increasingly becoming important points of sale for our insurance subsidiaries. In fiscal 2008, about 19% of ICICI Prudential Life Insurance Companys new business was generated through ICICI Bank.

The Customer Service Council comprising whole time directors and senior management meets regularly to review our customer service initiatives. Bank has implemented a structured customer feedback process where feedback is received from customers through e-mail, mobile messaging and telephone. Service quality team is responsible for tracking resolution and turn-around times for service requests, identifying root causes to be addressed through process improvements, rewarding achievements in customer service and institutionalizing learnings from customer feedback. The Customer Service Committee of the Board of Directors periodically reviews the initiatives taken by the Bank in this area.

RETAIL BANKING OPERATIONS 2.13 RETAIL BANKING OPERATIONS PROCEDURES OF ICICI BANKThis section of report of report is covering how Bank deals with its Retail operations. This is about my learnings with the ICICI Bank. Here are details of the Retail Banking operations of ICICI Bank:-

The Finacle (I-Core):- Finacle is the software in which all Banking transaction entries are made. Finacle is banking software which is used in all Banks. This is the term which will be used again and again, so I have explained details about it.

The data which is maintained in ICICI Bank in Finacle are:-

1) Customer account details2) Cash deposits

3) Cash payment

4) Transfer entries

5) Account Statement

6) Office accounts

7) Cash opening & closing entries

8) Inventory details of Bank

2.13.1 Process related with cash(a) cash availability on branch opening:- As ICICI Bank has 8-to-8 Banking. It is working in two shifts:- morning shift:-8-to-6

evening shift:-10-to-8

At 8 a.m. cash should be ready to serve customer. BM/BOM should be present at the time of opening of branch for security purpose. Cash is stored in double lock under dual custody of custodian:-CSO AND CSM. Cash custodian will bring cash from vault after entering the details in cash balancing register (CBR).

(b) Cash receiving process:-

Customer deposits cash after filling details in pay-in-slip. Cashier must ensure whole details in pay-in-slip. Any alterations on pay-in-slip should be authenticated by the customer.

Cash will be counted properly. Receipt Entry will be made in Finacle. Cash received stamp will be affixed thrice one each on the pay-in slip, counterfoil & perforated portion. Acknowledgement part will be given to the customer. Tran. Id will be written on pay-in-slip which is generated by the system. Cash Receipt more than RS.50000 and above:-As per the RBI Guidelines, In case of cash receipt of Rs. 50000 and above it should be ensured that pan no. is mentioned on pay-in- slip which should be matched with the system. If pan no. does not match, branch official should ensure the correctness of pan no. and update correct pan no.

If pan no. is not available duly filled form 60 will be obtained from the customer. Handling counterfeit notes:- In case branch receives counterfeit note from the customer, this will not be returned to customer. Branch will intimate the customer and issue receipt (which is in serial number) after duly signed by cashier and tenderer

Details will be mentioned in counterfeit note register

These counterfeit note will be sent to ICMC (where cash processing is done) within 15 daysCash payment process:-For making payments it should be ensured that:-

Cheques should not be postdated

There should not be mismatch in words and figures

Authentication should be done by the customer for any alteration

Signature verification should be done with the system

Denominations should be recorded on the reverse of the instrument.

Defacing will be done on the instrument

Tran id will be mentioned on the instrument from the system

Cash paid stamp will be affixed Customer calling on third party payment:-Branch officials will call the customers in the following instances of third party cash payments:- 1. In case the cheque is for Rs 50,000 or more in the case of Savings Bank cheques & presented by third party for withdrawal OR 2. In case the cheque is for Rs 1,00,000 or more in the case of Current Account customers & presented by third party for withdrawal OR

3. If there is any type of alteration on the cheque like crossing is opened, payee name is changed, date is altered, Order is changed to bearer

4. (Contacting the customer is required even if the alterations mentioned above are authenticated by the customer) OR

5. If there is any (even slight) difference in signature of the customer. It should be checked whether details have been recorded on the reverse of the instrument. Unprocessed cash:-It is the cash which is directly received by the customer and which is not used for making payment to customer. This is so because in bulk transactions there may be probability of receiving mutilated and counterfeit notes. Only processed cash should be issued to the customers.

Processed cash:-

As per the RBI Guidelines the above unprocessed cash is sent to currency chest called ICMC where this unprocessed cash is processed by machines. In processing mutilated and counterfeit notes are separated. These process notes are issued to customers. Branch has to inform to ICMC about the requirements of processed cash.

Bait money:-

Bait money is kept in branch for security purpose. It is like the normal cash which is kept in one packet of denomination of Rs. 100 for each shift. Its serial no. details are mentioned in cash balancing register.This bait money is not issued to customer. In case of robbery cash officer must ensure that this bait money should also be theft by robberies so that they could be cached.

When robbery happens this bait money no. is circulated everywhere. If robber uses this money, he can be cached easily.

(c) Quick Cash Deposit(QCD) : The Unique Process:-This process is unique because this facility is not available in any Bank except ICICI Bank.

Time is valuable. Normally customers have to wait in long queues for depositing money. ICICI Bank provides solution to this problem and makes deposit of cash hassle free through Quick Cash Deposit facility.Different amount Envelops of upto Rs. 200000 is available in ICICI BANK. For quick deposits customer has to put his money in the envelope and required details should be filled above the envelope. After this he can directly handle over this envelope at the counter without waiting in queues.

QCD PROCESS:- Acknowledgement of QCD envelop will be provided to the customers where receiving time & branch stamp will be affixed.

front office staff will record the number of covers deposit in the QCD box in the tally sheet & hand over the QCD box for processing after accumulating 30 covers or half-an-hour whichever is earlier

This QCD box is processed by the service provider

This processing takes 2 to 3 hours. After processing these notes are returned to Bank officers so that they can be able to credit the amount in customer account

Envelops received between 6-to-8 will not be processed on same day. It will be processed on next day. Only entry will be parked in accounts and the next day same entry will be reversed

2.13.2 ANTI MONEY LAUNDERING

1) Issue of demand draft(DD) & pay order(PO):-

As per the RBI guidelines no Demand draft & pay order will be issued for cash beyond the stipulated limit of Rs. 49999/- including issuance charges and service tax.To avoid the violation of this guideline ICICI Bank, c-scheme branch does not make any DD & PO in cash.2) repayment of FDs against cash within the stipulated limit:-As per the RBI guidelines Repayment of FDs of more than Rs.20000/- and above in cash will not be made.3) Cash Receipt more than RS.50000 and above:-

As per the RBI Guidelines, In case of cash receipt of Rs. 50000 and above branch will obtain PAN no. / form 60 from the customer. If pan no. is already updated in system branch official should ensure the correctness of PAN no.

If any splitting happens in different branches than form 60 will be obtained within 30 days by the base branch in case of PAN no. is not updated in the system.

4) Large Cash Transaction Process:-

In case of cash transactions of Rs. 10 lac and above customer letter will be obtained Source of funds in case of cash deposit and Purpose of withdrawal in case of cash withdrawal will be mentioned in the letter

Reason should be proper in letter. This letter should be duly signed by the account holder/authorized signatory.

Exemptions will be given for this to Central & State Govt. Entities, PSUs, Banks, Internal Accounts such as RAPG Collection accounts & Accounts of ICICI Group Companies)

In case of visit by customer's representative to deposit or withdraw without producing the letter from the customer, the information will be obtained over phone for source/reason which will be mentioned on the backside of the voucher These details will be sent fortnightly in the report CAT-32.13.3 OPERATIONSa) Operations allowed by branch in accounts where signature scanning is pending:- In case of new accounts normally signature updatation takes time in Finacle, so signature scanning remains pending. If a customer wants to do transactions in that account than branch will hold proof for alternate signature verification for allowing operation in that account.b) Process of activation of Dormant accounts:-

The account in which no transaction (i.e. cash withdrawal) is made upto 18 months, it becomes Dormant. In dormant accounts no transaction will be allowed by the Bank. For activation of these accounts following process will be followed:-

the branch will obtain request letter from customer for activation of the account

signature of the customer will be verified and the same will be evidenced in the request letter

The activation will be approved by the BH / BOM and the same will be evidenced in the request letter.

Branch is supposed to lift the dormancy flag only in emergency situation i.e., ATM withdrawal by the customer. The request letter should evidence the emergency reason.

c) Customer Service Management:-

i. Conducting Customer Service Committee Meeting:-

A committee is formed for the meeting with the membership of BM ,BOM

and one official of Bank ( who remains in rotation in every 3 months)

For the purpose of customer committee meeting 20 customers is called by the branch.

This meeting is conducted on a monthly basis and Customer meet register is updated

The branch follows up with the issues raised by the customers during the meet & the same is recorded in the register.

the minutes of the meeting is updated in the URL within two days from the date of the meeting

ii. customer complaints handling :-

the complaints forms are cleared on a daily basis from the complaint box and FCRM is lodged immediately The complaint register is maintained and details of complaints are entered in the complaint register and the resolution is updated in the register.

d) Processing of Expenses:- Authorization from Branch Head:-

Where branches have debited charges account, BM authorization will be obtained and it is evidenced on the composit voucher.

If the Branch head is maker/checker of transaction while entering the expense in I-Core, the same is treated as equivalent to authorisation by Branch head. Obtaining approval as per DFP:-

If any expenses is done by the branch beyond the DFP (delegation of financial power), than for that expenses approval of higher authority will be taken. Obtaining approval of regional head:-

In case, if any expense is debited to SA.EXPINS a/c, then for expenses beyond Rs. 2000/-, Regional Head prior approval is obtained for debiting this account.

e) Processing of customer requests:-

Customer request can be of many types like:- Address change request

Issuance of ATM Card

Addition of name

E-mail address change

Phone no. change

Issuance of Insta card

Dormant account activation etc Account closing request

The procedure of obtaining these requests is as follows:

"Received Date" stamp will be affixed on all the CRFs (customer request forms) received.

the signature of the customer will be verified and the same will be evidenced on the CRF

The requests will be lodged in FCRM module without any delay and SR will be noted on the request forms.

f) Direct / Indirect Tax Collection:-

ICICI Bank provides the facility of depositing tax of customers. In case of depositing tax through clearing cheques, a token is given to the customer.

After the clearing of cheque, acknowledgement is given to the customer after receiving the token back.g) Locker facility:-In ICICI Bank, c-scheme branch, locker facility is provided to the customers. To avail this facility, customer has to give the request form and an agreement is made between the branch and the customer which is duly stamped.

If locker is allotted to Firm / Body Corporate / Trust / Society etc, a certified copy of the resolution passed by the Board of Directors / Governing Body / authorized persons to operate the locker, etc. has to be obtained

Photographs and Id proof of all the hirers has to be obtained The photographs and signature of the customers are uploaded in the system named SDLS. One year advance rent is obtained from the customer

In case of rent overdue, branch does not allow any operation.

h) Locker access procedure:-

To control the locker access process a register is maintained named locker access register.

If a customer who is having locker wants to access his locker, then his signature is obtained in the register and branch official also signs in the register who is allowing locker access

Customers signature and his identity will be matched with the SDLS where his signature and photograph is scanned.

In-time and out-time will be mentioned in the register

From the register, in-time and out-time is updated in his locker account.i) Safe custody of Fixed deposits:-ICICI Bank provides the facility of safe custody of fixed deposit receipts. Customer can deposit their FDRs (fixed deposit receipt) with Bank more safely.

j) Loan against FD:-

ICICI Bank provides the facility of loan against FD. The maximum limit of loan is 90% of the maturity value of FD.

The interest rate applicable for that loan is 2% more from the interest rate of FD

For sanctioning this loan appropriate authority approval is taken.

The documents of loan against FD are kept under safe custody in FRFC (security safe)

k) Temporary overdraft (TOD):-ICICI Bank also provides the facility of temporary overdraft to their known customers. Generally branch provides this facility only in emergency situations like debit balance due to wrong credit given by the branch.

Branch has to regularize this TOD within 30 days. A register is maintained for the above purpose in prescribed format. In this register date of approving TOD and date of regularization has to be written.

l) Franking:-Franking means making ordinary paper as stamp paper. ICICI Bank, c-scheme branch provides the facility of franking.To avoid misuse, franking on blank paper is not done. There should be something written on paper. Franking is done of any amount. ANTI MONEY LAUNDERING is followed in case of franking done in cash.

m) Sale of gold coins:-

ICICI Bank sales the gold coins of different weights like 1gm., 2gm., 2.5gm, 5gm., 8gm., 20gm.,50gm. Etc.

In case of sale of gold coins to non-customers in Cash for Rs.50, 000/- and above, address proof needs to be obtained only if Form 60 is taken. In case PAN is obtained, PAN copy should be maintained duly attested for having verified with orig