PROJECT REPORT

ON

UNIVERSAL BANKING :-AN ICICI BANK EXPERIENCE

Report submitted in partial fulfillment of the requirement for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

OF

ICFAI UNIVERSITY

Under Guidance of Prof. Biraj Mohanty

Lecturer

ICFAI BUSINESS SCHOOL

123-A, MANCHAESWAR INDUSTRIAL ESTATE,

BHUBANESWAR -10,PH: 2585593-93

Submitted by

PRADEEP KUMAR PANDEY

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Reg. No. 08BS0002262

CERTIFICATE

I hereby certify that the project report submitted to the ICFAI University in partial fulfillment of the requirement for the award of the degree of Master of business administration is based on project undertaken by PRADEEP KUMAR PANDEY under my guidance.

Submitted in partial fulfillment of the requirement for the award of degree of

MASTER OF BUSINESS ADMINISTRATION

OF

ICFAI NIVERSITY

Signature of

Faculty Guide:

Signature of

Company Guide:

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ACKNOWLEDGEMENT

"Work is Worship"- so goes the old adage, Herculean task have been overheard by dedicated and concerted effort of various people who have sensibly and systematically blended their thoughts. I acknowledge deep sense of gratitude towards my guide, Prof.Biraj Mohanty,for giving me time and support. I am highly obliged towards Mr. Sanjeeb Swain(Sales Manager) and Mr. Sanjeev Ganguly(Branch Head) of ICICI Bank for their precious guidance, kind encouragement and timely suggestions.I express my profound sense of gratitude towards to each and every person in IBS and ICICI Bank for have provided me with facilities and help for the successful completion of the project and also for the moral support and co-operation. Finally, I would like to thank our family and all our friends for helping me to overcome the hurdles that I faced during the preparation of the project report.

Date: Pradeep Kumar Pandey

Enrollment No:-08BS0002262

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Preface

Decision making is a fundamental part of the research process. Decisions regarding

that what you want to do, how you want to do, what tools and techniques must be

used for the successful completion of the project. In fact it is the researcher’s

efficiency as a decision maker that makes project fruitful for those who concern to

the area of study.

Basically when we are playing with computer in every part of life, I used it in my

project not for the ease of my but for the ease of result explanation to those who

will read this project. The project presents the role of financial system in life of

persons.

I had toiled to achieve the goals desired. Being a neophyte in this highly

competitive world of business, I had come across several difficulties to make the

objectives a reality. I am presenting this hand carved efforts in black and white. If

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anywhere something is found not in tandem to the theme then you are welcome

with your valuable suggestions.

Executive Summary

Banking 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 our 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.

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- Sensitivity of the industry was also a very frequent factor which was very

important to measure correctly.

- Area covered for the project while doing job also was very large and it was

very difficult to correlate two different customers/respondents views in a

one.

- Every financial customer has his/her own need and according to the

requirements of the customer product customization was not possible.

Abstract

Banking 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.

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 our product and products of

the competitors.

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- 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 Bank performance in

this competitive era.

CONTENTS

CHAPTER 1

INTRODUCTION

1.1 General

1.2 An Overview of Banking Industry

1.3 Universal Banking

1.4 Retail Banking

CHAPTER-2

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Terms Related to Banking

2.1 General

2.2 Dematerialization of Securities (DEMAT)

2.3 Sale/Delivery of Securities

2.4 Purchase/ Receipt of Securities

2.5 Dematerializations

2.6 Pledge

2.7 Freezing/Defreezing

2.8 Corporate Benefit- Dividend, Bonus, Right Issue

2.9 Public Issue

2.10 Nominations

2.11 Transmission

2.12 Demat Account Statement

2.13 Registration for Internet/ Phone Access & E-instructions

2.14 Mobile Banking

2.15 Billing & Payments

2.16 Change of Address & Bank Details

2.17 Change of Rate Card

2.18 Account Security

CHAPTER-3

Introduction to the Study

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3.1 Theoretical Backgrounds of the Study

3.2 Objectives

3.4 Research Methodology

3.5 Targeted People

CHAPTER-4

Company Profile

4.1 A Brief Introduction of ICICI Bank Limited

CHAPTER-5(PRODUCTS AND SERVICES DESCRIPTION)

Bank Deposits

5.1 Preamble

5.2 Types of Deposit Accounts

5.3 Key Features of Different Types of Accounts

5.3.1 Minor's Account

5.3.2 Account of Illiterate & Blind Person

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

5.3.4 Dormant Accounts

5.4 Directives on Interest Payments & Term Deposit

5.4.1 Interest Payments

5.4.2 Premature Withdrawal of Term Deposits

5.4.3 Premature Renewals of Term Deposits

5.4.4 Advances Against Deposits

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5.5 Deceased Account Holding

5.5.1 Settlement of Dues in Deceased Deposit Account

5.5.2 Interest Payable on Term Deposit in Deceased Account

5.6 Facilitation of Other Banking Services

5.6.1 Stop Payment Facility

5.6.2 Safe Deposit Lockers

5.7 Safeguarding Customer Interest

5.7.1 Customer Information

5.7.2Secrecy of Customer's Accounts

5.7.3 Insurance Cover for Deposits

5.7.4 Redressal Of Complaints & Grievances

CHAPTER-6

Loans Available at ICICI Bank

6.1 Home Loans

6.2 Persona Loan

6.3 Car Loans

6.4 Farm Equipment Loans

6.5 Construction Equipment Loans

6.6 Loan against Securities

6.7 Loan against Property

6.8 Farmer Finance

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6.9 Rural Education Loan

CHAPTER-7

Non-Depository Services

7.1 Consumer Cards

7.2 Commercial Cards

7.3 Mobile Banking

7.4 Phone Banking

CHAPTER- 8

Demat & Investments

8.1 Demat Service

8.2 Investments

CHAPTER-9

Life and General Insurance Services

CHAPTER-10

Other ICICI Initiatives

CHAPTER-11

Analysis,Findings,Recommendations & Conclusion

CHAPTER- 1

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INTRODUCTION

1.1General

ICICI Bank is a private sector bank engaged in retail banking, insurance etc. ICICI Bank,Naya Palli Branch is a newly founded branch. Universal banking refers to the banking, which provides all the financial products and services to its customers.

1.2An Overview of Banking Industry

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

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

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space will see banks and non-banks striving to seek opportunities to profit, in the wake of product customization.

1.3Universal Banking

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

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

Universal Banking generally takes three forms:

In-house Universal banking. Eg. Germany, Switzerland. Through separately capitalized subsidiaries. Eg. England, Japan.

Operations carried through a holding company. Eg. USA, Japan.

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

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pertaining to lending plus investments in bonds and debentures. A broader view could include a basket of all the financial activities including insurance.

The characteristics of Universal Banking heavily depend of two

most important factors, namely:

- The specific country’s diversification rules and regulations.

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

1.4 Retail Banking

Retail Banking Group has emerged as the fastest growing segment within ICICI Bank Ltd. Within RBG, retail channel and liability group mobilize the much-needed resources at highly competitive rates through deposits and bonds and retail assets and products group deploys the available resources through various channels like Home Loans,Personnel Loans, Consumer Durable Loans, Commercial Vehicles Loan etc. in the retail assets. Across the world retail banking has been the high volume-low value business proposition. Enormous amount of resources are required to acquire and service customer in terms of infrastructure and operation.Given the current stage of evolution of the Indian market, we have adopted an organization model that continuous to focus on product and on achieving attention and dedicated services, and at the same facilitate the widening and deepening of customer relationships.Small enterprises and emerging corporate segment has strong synergies with the retail business in terms of customer profile and servicing is done through technology platform and retail branches.

CHAPTER-2

TERMS RELATED TO BANKING

2.1 General

A depository is like a bank where securities are held in electronic form. In India, there are two depositories- National Securities Depositories Limited (NSDL) and Centeral Depository Services (CDSL).Under the depository Act, depositors can

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avail to the services of the Depositories through Depository Participant (DP) such as ICICI Bank. DP's are like bank branches wherein shares in physical form need to be deposited for converting to electronic (Demat) form.

2.2 Dematerialization of Securities (Demat)

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

2.3 Sale/Delivery of Securities

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

2.4 Purchase/Receipt of Securities

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

2.5 Dematerialization

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It is the process of converting the securities held in electronic form in a Demat account to an equivalent number of securities in physical form (certificates) after debiting the same from the Demat account.

2.6 Pledge

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

2.7 Freezing/Defreezing

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

2.8 Corporate Benefit- Dividend, Bonus or Right Issue

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

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physical or electronic form in the customers Demat account.In case of a merger or acquisition, securities in the beneficial owner's Demat account is automatically credited and debited by the company as per pre-declared ratio under intimation to the beneficial owner. This will be reflected in the transaction statement for the period.

2.9 Public Issue

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

2.10 Nomination

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

2.11 Transmission

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

2.12 Demat Account Statement

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

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2.13 Registration for Internet/phone Access & e-instructions

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

2.14 Mobile Banking

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

2.15 Billing & Payments

The bills are generated in the beginning of each month for the previous month. The due date is mentioned in the bill. However, it is not viable to send bills with amount less than a certain cut-off amount. i.e. Rs. 50. Customers will receive bills in the next quarter or whenever the bill amount exceeds the cut-off amount.

2.16 Change of Address & Bank Details

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

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

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

2.17 Change of Rate Card

One can shift from the standard scheme to the frequent traders scheme or vice-versa. The application should be made in a prescribed form at ICICI bank. In case of shift from standard scheme to frequent trader scheme, the customer can specify

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the date from which the shift should take place and the application should contain a mandate for recover of Rs. 900. In case of shift from frequent trader scheme to standard scheme, the scheme is always effective from the date when the change in the billing scheme is been done.

2.18 Account Security

Emphasis needs to be given on the fact that the securities that one have in ones Demat account are similar to the money that one holds in bank account. One needs to take all precautions for ones Demat transaction as one exercise for bank account.

The TFD booklet should be kept safely just like a cheque book.

The details should not be shared of one's Demat account number and signature with anyone.

It should be accepted only if it has pre-printed serial number as well as one's Demat account number pre-stamped on each slip.

It should not be signed unless completely filled.

If possible one should make use of web facility to check ones Transactions as frequently as possible.

"Account freeze" instruction should be given to ICICI bank if one do not intend to operate ones account for a long time.

CHAPTER-3

INTRODUCTION TO THE STUDY

3.1 Theoretical Background of the Study

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

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

3.2 Objectives

Analytical observation of products related to day-to-day operation of ICICI Bank Limited.

Comparing and evaluating the real operation with the ideal one. To Analyse the profitability of different products and services offered by

ICICI . To come out with valuable suggestions for improvement.

3.3 Research Methodology

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

3.4 Targeted People

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

CHAPTER-4

COMPANY PROFILE

4.1 A Brief Introduction of ICICI Bank Limited

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

ICICI was formed in 1955 at the initiative of the World Bank, the Government of India and representatives of Indian industry. The objective was to create a development financial institution for providing medium-term and long-term project financing to Indian businesses. In the 1990s, ICICI transformed its business from a development financial institution offering only project finance to a diversified financial services group offering a wide variety of products and services, both directly and through a number of subsidiaries and affiliates like ICICI Bank.In 1999, ICICI become the first Indian company and the first bank or financial institution from non-Japan Asia to be listed on the NYSE. In 2001, ICICI bank acquired Bank of Madura1 Limited. ICICI Bank set up its international banking group in fiscal 2002 to cater to the cross border needs of clients and leverage on its domestic banking strengths to offer products internationally. ICICI Bank currently has subsidiaries in the United Kingdom, Canada and Russia, branches in Singapore and Bahrain and representative offices in the United States,China, United Arab

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Emirates, Bangladesh and South Africa. In 2003, the first Integrated Currency Management Centre launched in Pune. ICICI Bank announced the setting up of its first ever offshore branch in Singapore. The first offshore banking unit (OBU) at Seepz Special Economic Zone, Mumbai, launched. ICICI Bank's representative office inaugurated in Dubai. Representative office set up in China.ICICI Bank's UK subsidiary launched. India's first ever "Visa Mini Credit Card", a 43% smaller credit card in dimensions launched. ICICI Bank subsidiary set up in Canada. Temasek Holdings acquired 5.2% stake in ICICI Bank. ICICI Bank became the market leader in retail credit in India.In 2004, Max Money, a home loan product that offers the dual benefit of higher eligibility and affordability to a customer, introduced. Mobile banking service in India launched in association with Reliance Infocomm. India's first multi-branded credit card with HPCL and Airtel launched. Kisaan Loan Card and innovative, low-cost ATMs in rural India launched. ICICI Bank and CNBC TV 18 announced India's first ever awards recognizing the achievements of SMEs, a pioneering initiative to encourage the contribution of Small and Medium Enterprises to the growth of Indian economy. In 2005, ICICI Bank opened its 500th branch in India. ICICI Bank introduced partnership model wherein ICICI Bank would forge an alliance with existing micro finance institutions (MFIs). The MFI would undertake the promotional role of identifying, training and promoting the micro-finance clients and ICICI Bank would finance the clients directly on the recommendation of the MFI. ICICI Bank introduced 8-8 banking wherein all the branches of the Bank would remain open from 8a.m. to 8 p.m. from Monday to Saturday. ICICI Bank introduced the concept of floating rate for home loans in India. First rural branch and ATM launched in Uttar Pradesh at Delpandarwa, Hardoi. "Free for Life" credit cards launched wherein annual fees of all ICICI Bank Credit Cards were waived off. ICICI Bank and Visa jointly launched mChq a revolutionary credit card on the mobile phone. Private Banking Masters 2005, a nationwide Golf tournament for high net worth clients of the private banking division launched. This event is the largest domestic invitation amateur golf event conducted in India. 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

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bank in India in terms of its market capitalization.In 2006 ,ICICI Bank became the first private entity in India to offer a discount to retail investors for its follow-up offer. ICICI Bank became the first Indian bank to issue hybrid Tier-1 perpetual debt in the international markets. ICICI Bank subsidiary set up in Russia.In 2007, introduced a new product - 'NRI smart save Deposits' a unique fixed deposit scheme for non resident Indians. Representative offices opened in Thailand, Indonesia and Malaysia. ICICI Bank became the largest retail player in the market to introduce a biometric enabled smart card that allows banking transactions to be conducted on the field. A low-cost solution, this became an effective delivery option for ICICI Bank's micro finance institution partners. Financial counseling centre Disha launched. Disha provides free credit counseling,financial planning and debt management services. Bhoomi puja conducted for a regional hub in Hyderabad, Andhra Pradesh. ICICI Bank's USD 2 billion 3-tranche international bond offering was the largest bond offering by an Indian bank. Sangli Bank amalgamated with ICICI Bank. ICICI Bank raised Rs 20,000 crore (approx $5 billion) from both domestic and international markets through a follow-on public offer. ICICI Bank's GBP 350 million international bond offering marked the inaugural deal in the sterling market from an Indian issuer and also the largest deal in the sterling market from Asia. Launched India's first ever jewellery card in association with jewelry major Gitanjali Group. It became the first bank inIndia to launch a premium credit card -- The Visa Signature Credit Card. Foundation stone laid for a regional hub in Gandhinagar, Gujarat. Introduced SME Toolkit, an online resource centre, to help small and medium enterprises start, finance and grow their business. ICICIBank signed a multi-tranche dual currency US$ 1.5 billion syndication loan agreement inSingapore. 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, nationwide 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.In 2008, ICICI Bank enters US, launches its first branch in New York. ICICI Bank

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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 1.21billion) 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.Today, 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.

CHAPTER-5

BANK DEPOSITS

5.1 Preamble

One of the important functions of the bank is to accept deposits from the public for the purpose of lending. In fact, depositors are the major stakeholders of the banking system. The depositors and their interests from the key area of the regulatory framework for banking in India and this has been enshrined in the Banking Regulation Act, 1949. The Reserve Bank of India is empowered to issue directives/advices on interest rates on deposits and other aspects regarding conduct of deposit accounts from time to time. With liberalization in the financial system and deregulation interest rates, banks are now free to formulate deposit products within the broad guidelines issued by RBI. This policy document on deposits outlines the guiding principles in respect of formulation of various deposit products offered by the bank and terms and conditions of governing the conduct of the account. The document recognizes the right of depositors and aims at dissemination of information with regard to various aspects of acceptance of deposits from the members of the public, conduct and operations of various

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deposits accounts, method of disposal of individual customers and creates awareness among customer of their right.While adopting this policy, the bank reiterates its commitments to individual customers outlined in Bankers' Fair Practice Code of Indian Banks' Association. This document is a board framework under which the rights of common depositors are recognized. Detailed operational instructions on various depositors are recognized. Detailed operational instructions on various deposits schemes and related services will be issued from time to time.

5.2 Types of Deposit Accounts

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

"Saving Deposits" means a form of deposit which is subject to restriction as to the number of withdrawals permitted by the bank during a specified period.

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

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

5.3 Key Features on Operation of Different Types of Accounts

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

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

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

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

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

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

The above mandates will be applicable to or become operational during the tenure of the term deposit on or after the date of maturity of term deposit. This mandate can be modified by consent of all account holders. At the request of the depositor, the bank will register mandate power of attorney given by the customer authorizing another person to operate the account on his behalf.The term deposit account holders at the time of placing their deposits can give instructions with regard to closure of deposit or renewal of deposit for further period on the date of maturity.Nomination facility is available on all accounts. It can be made in favor of one individual only. It can be cancelled or changed by the account holder any

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time.Bank recommends that all account holder avail to the nomination facility. The nominee in the event of death of the depositor will receive the outstanding balance in the account as a trustee of legal heirs. A statement of account will be provided by the bank to savings bank as well as current account holders periodically as per terms and conditions of opening an account.The deposit account may be transferred to any other branch of the bank at the request of the depositor.

5.3.1 Minor's Account

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

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

5.3.2 Account of Illiterate/Blind Person

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

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

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

5.4 Directives on Interest Payments & term Deposits

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5.4.1 Interest Payments

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

5.4.2 Premature Withdrawal of Term Deposit

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

5.4.3 Premature Renewal of Term Deposits

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

5.4.4 Renewal of Overdue Term Deposits

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

5.4.5 Advances against Deposits

The bank may consider loan overdraft facility against term deposits duly discharged by the

depositor on the execution of necessary security documents.

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5.5 Deceased Account Handling

5.5.1 Settlement of Dues in Deceased Deposit Account

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

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

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

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

5.5.2 Interest on Term Deposit in Deceased Account

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

5.6 Facilitation of Other Banking Services

5.6.1 Stop Payment Facility

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

5.6.2 Safe Deposit Lockers

It may be hired by individual or jointly. Nomination facility is available to the individuals holding the lockers singly or jointly. In case of death of the holder the bank will release the contents of the locker to the legal heirs if the nominations are not made.

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5.7 Safeguarding Customer Interest

5.7.1 Customer Information

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

5.7.2 Secrecy of Customer Accounts

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

5.7.3 Insurance Cover for Deposits

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

5.7.4 Redressal of Complaints & Grievances

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

CHAPTER-6

LOANS AVAILABLE AT ICICI BANK

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

6.1 Home Loans

At ICICI Bank Home Loans, offer unbeatable benefits to ensure the customer get the best deal without any hassles. As one of the leading home loan provider, ICICI Bank understands how special building a new home is and Home Loan help the

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customer lay the foundation for their dream home. ICICI offers the most convenient home loan plans to suit the needs. With so many attractive features in every type of home loan they offer, creating the home the customer always wanted is no longer a distant dream. Some of the key benefits are:

· Guidance throughout the process

· Home loan amounts suited to your needs

· Home Loan tenure up to 20 years

· Simplified Documentation

· Doorstep Service

· Attractive interest rates

· Sanction approval without having selected a property.

· Free Personal Accident Insurance

· Insurance options for your home loan at attractive premium

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

6.2 Personal Loans

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

Key Benefits of ICICI Bank Personal Loan:

· Loan up to 15 lacks

· No security/guarantor required

· Faster Processing

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· Minimum Documentation

· Attractive Interest Rates

· 12-60 Months repayment options

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

6.3 Car Loans

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

1. Loan on Phone for Customers: Are you an ICICI Bank customer? Go for a pre-approved car loan. Call our Customer Care numbers or sms "carloan " to567676.

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

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

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

6.4 Farm Equipment Loans

Preferred financier for almost all leading tractor manufacturers in the country. Financing farm equipments in over 381 locations spread across the country.Fast processing of files with easy documentation. Flexible repayment options in tandem

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with the farmer's seasonal liquidity. Monthly, Quarterly and Half-yearly repayment patterns to choose from. Comfortable repayment tenures from 1 year to 6 years.

6.5 Construction Equipment Loan

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

6.6 Loan against Securities

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

6.7 Loan against Property

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

Loan Against Property!

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

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Expand your business!

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

Get your child married!

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

Send your child for higher studies!

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

Fund your dream vacation!

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

Renovate your home!

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

6.8 Farmer Finance

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

6.9 Rural Education Loan

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

CHAPTER-7

NON-DEPOSITORY SERVICES

7.1 Consumer Cards

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

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

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

7.2 Commercial Cards

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

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

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

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

· Travel & Entertainment

· Telecommunications

· Utility Payments

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· General MRO Goods

· Office products

· Computer and peripherals

· Professional services

· Lease and rental payments

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

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

7.3 Mobile Banking

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

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

7.4 Phone Banking

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

They can enquire about their account balances.

They can know about last three transactions.

They can know about dishonor of cheques.

Customers can request for new cheque books.

Customers can block their ATM/ Debit cards.

Customers can stop the payments.

CHAPTER-8

DEMAT & INVESTMENTS

8.1 Demat Services

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

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

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Consolidation Demat Account: Dematerialize your physical shares in various holding patterns and consolidate all such scattered holdings into your primary Demat account at reduced cost.

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

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

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

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

8.2 Investments

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

· ICICI Bank Tax Saving Bonds

· Government of India Bonds

· Investment in Mutual Funds

· Initial Public Offers by Corporate

· Investment in "Pure Gold"

· Foreign Exchange Services

· Senior Citizens Savings Scheme, 2004

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

8.2.1 ICICI Bank Bonds

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

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

· Bonds are listed on BSE, NSE

8.2.2 GOI Bonds

8% Savings Bonds (Taxable), 2003

Low risk.

Reasonable investment tenure.

Nomination facility available.

Cannot be traded in secondary market.

Interest income taxable.

8.2.3 Mutual Funds

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

Types of Funds Sold

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

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

Schemes etc.

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

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

education Schemes etc.

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

· ICICI Bank Branches

· ICICIdirect.com

Dedicated workforce to serve you

· Before being deputed, our officers complete a comprehensive training program and, once deputed, they receive thorough instructions in financial planning skills and techniques. Throughout their careers officers also attend programs to update their skills.

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

(Association of Mutual Funds in India)

· Many of these officers also hold professional degrees like - MBA, CA, ICWA,

CFA etc.

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8.2.4 IPO

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

8.2.5 ICICI Bank Pure Gold

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

Convenience

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

8.2.6 FOREX Services

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

8.2.7 Senior Citizen's Savings Scheme

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·Scheme Details: Senior Citizens Savings Scheme (SCSS) is a Government of India 9% interest offered to depositors. Since the product is offered by Govt of India, this product is one of the most Safest Investment Option. Premature closure of account is possible after one year from the date of opening the account.

· Advantages of Opening an SCSS Account with ICICI Bank.

Large number of Branches.

Facility of Direct Credit of Interest to ICICI Bank Account.

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

ICICI DIRECT

ICICI Direct.com is a truly online share-trading site. Which means that from the

time you punch in a buy or sell trade on your computer to the final settlement in

your account, everything happens completely online? The 3-in-1 e-invest account

integrates your brokerage, bank and one or more depository accounts to make sure

that you can do the otherwise cumbersome share trading from the comfort of your

home or office, at absolutely any time of the day or night.

ORGANISATIONAL STRUCTURE

Anil Kaul, ceo – Retail

Ashish Kaul, marketing & analysist

Rajendra Sharma, equity Analysist & MIS

Rohit Dhabolkar, marketing & Branding

Sanjiv Saraff, product Manager

Abhijit Ghosh, Sales zonal heads

Dharmesh dixit, project & operation.

Prasanan keshavan, Customer service & operation

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Raman Addanki, Legal risk & Complain

Manoj kabra, Audit & cost control.

Harendra Kumar, Research

Joseph Abraham, HR.

Shikha sing, Compensation.

Sujata kapoor, Talent Management.

Aloma Sing, Strategic&Sourcing.

Malachi Lopes, HRIS

Sanjita Chougle, Payroll.

Santosh Nayak, Administration.

Company’s Vision:

To make ICICI Direct the dominant online share trading by world class people and services.

This we hope to achieve by:

Understanding the needs of customers and offering them superior product

and service.

Leveraging technology to service customers quickly and conveniently.

Developing and implementing superior risk management and investment

strategic to offer sustainable and stable return to our shareholder.

Providing and enabling environment to foster growth and learning for our

employees

Company’s mission:

To judged by their sales and earnings growth rates than on the absolute value of

their sales and earnings. Look for companies that consistently grow faster than

there peers. Investors prefer companies that increase profit margins -- the

percentage of sales that they keep -- every year. This is accomplished either by

lowering expenses or raising prices. Look for companies that consistently find

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ways to squeeze more profits out of sales than their peers. The financial health of a

company is dependent on a combination of profitability, short-term liquidity and

long term liquidity. Companies, which are profitable, but have poor short term or

long term liquidity measures, do not survive the troughs of the trade cycle.

SWOT ANALYSIS OF THE COMPANY:

Strengths

1. Management philosophy and commitment to maximize shareholders returns

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

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

4. Team of talented and committed professionals available to improve companies performance .

Weakness

1. Competition from other players

2. Management of customer base

Opportunities

1. Exploration of new customer bases viz. rural customers

2. Upgradation of the system and professionals

Threats, Risks & Concerns

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

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2. Relentless pressure to maintain profitability

Analysis Based on Secondary Data

Percentage of customers’ preference over other depository services in ICICI

Direct.com.

From the above showing statistics it is observed that in the survey 50% customers justify that ICICI capital Ltd. providing quality services as compare to other depository services

Percetage of investors having ICICI DIRECT.COM

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

customers are long term investors.

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

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50%

20%

12%4%

14%

Quality Service Safety Reach

Vast variety of Service Nothing in Particular

58%32%

10%

Small Investors Long term investors Trades

64%

24%

10%

2%

0%

Satisfied Mostly Satisfied Newither Satisfied/ Unsatisfied Mostly Unsatisfied Unsatisfied

According to survey 64% of customers are satisfied with the services of ICICI

Direct .com and 24% are mostly satisfied. Then we can say that ICICI Direct.Com

offers quality service that touches customers’ satisfaction level.

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

It Shows that 52% of customers justify their preferences for ICICI Direct.com for

quality services, 10% for rates charged and 8% for safety. So, we can say that

ICICI Direct.Com provides quality services than its competitors. But in case of rate

charges and safety ICICI Direct.Com is behind its competitors.

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52%

10%

24%

8% 6%

Quality Service Rates charged Nothing in Particular Safety Reach

FINDINGS

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

ICICIdirect.com offers a wide choice of products for investing in the stock market. It allows to invest in shares, mutual funds and other financial products. With ICICIdirect.com one can manage own de-mat and bank accounts directly and independently.

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

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

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

Printed account statements too are available for earlier.

SUGGESTIONS

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

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

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

Customers are facing over crowding, non-availability of telephone lines, so proper measures should be taken to overcome these problems.

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

CHAPTER-9

Life insurance is a form of insurance that pays monetary proceeds upon the death of the insured covered in the policy. Essentially, a life insurance policy is a contract between the named insured and the insurance company wherein the insurance company agrees to pay an agreed upon sum of money to the insured's named beneficiary so long as the insured's premiums are current. With a large population and the untapped market area of this population insurance happens to be a very big opportunity in India. Today it stands as a business growing at the rate of 15-20% annually. Together with banking services, it adds about 7 percent to the countries GDP. In spite of all this growth statistics of the penetration of the insurance in the country is very poor. Nearly 80% of Indian populations are without life insurance cover and the health insurance. This is an indicator that growth potential for the insurance sector is immense in India. It was due to this immense growth that the regulations were introduced in the insurance sector and in continuation "Malhotra Committee" was constituted by the government in 1993 to examine the various aspects of the industry. The key element of the reform process was participation of overseas insurance companies with 26% capital. Creating a more competitive financial system suitable for the requirements of the economy was the main idea behind this reform. Since then the insurance industry has gone through many changes. The liberalization of the industry the insurance industry has never looked back and today stand as one of the most competitive and exploring industry in India. The entry of the private players and the increased use of the new distribution are in the limelight today. The use of new distribution techniques and

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the IT tools has increased the scope of the industry in the longer run. Insurance is the business of providing protection against financial aspects of risk, such as those to property, life health and legal liability. It is one method of a greater concept known as risk management which is the need to mange uncertainty on account of exposure to loss, injury, disadvantage or destruction. Insurance is the method of spreading and transfer of risk. The fortunate many who are exposed to some or similar risk shares loss of the unfortunate. Insurance does not protect the assets but only compensates the economic or financial loss. In insurance the insured makes payment called "premiums" to an insurer, and in return is able to claim a payment from the insurer if the insured suffers a defined type of loss. This relationship is usually drawn up in a formal legal contract. Insurance companies also earn investment profits, because they have the use of the premium money from the time they receive it until the time they need it to pay claims. This money is called the float. When the investments of float are successful they may earn large profits, even if the insurance company pays out in claims every penny received as premiums. In fact, most insurance companies pay out more money than they receive in premiums. The excess amount that they pay to policyholders is the cost of float. An insurance company will profit if they invest the money at a greater return than their costof float. An insurance contract or policy will set out in detail the exact circumstances under which a benefit payment will be made and the amount of the premiums.

Classification of insurance

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

1) Life insurance.

2) Non-life (general) insurance.

1) Life insurance:

Life insurance can be defined as "life insurance provides a sum of money if the person who is insured dies while the policy is in effect". In 1818 British introduced to India, with the establishment of the oriental life insurance company in Calcutta.

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The first Indian owned Life Insurance Company; the Bombay mutual life assurance society was set up in 1870.the life insurance act, 1912 was the first statuary measure to regulate the life insurance business in India. In 1983, the earlier legislation was consolidated and amended by the insurance act, 1938, with comprehensive provisions for detailed effective control over insurance. The union government had opened the insurance sector for private participation in 1999, also allowing the private companies to have foreign equity up to 26%. Following the opening up of the insurance sector, 12 private sector companies have entered the life insurance business.

Benefits of life insurance

Life insurance encourages saving and forces thrift.

It is superior to a traditional savings vehicle.

It helps to achieve the purpose of life assured.

It can be enchased and facilitates quick borrowing.

It provides valuable tax relief.

2) Non-life (general) Insurance:

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

ICICI PRUDENTIAL

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a premier financial powerhouse and prudential plc, a leading international financial services group headquartered in the United Kingdom (UK). The company

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

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

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

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

Single Premium Bond: The Single Premium Bond is the name of a policy that combines the features of an investment in a cumulative deposit scheme with that of an insurance product. Policy-holders are required to pay a one-time premium based on a target sum assured. At maturity, the policy-holder gets the sum assured and guaranteed additions that work out to a compound return of 4.5 per cent the sum assured. The insurance part of the package comes in the form of death benefits that are paid in the case of the demise of the policy-holder. The size of the death benefit is linked to the number of years left for the policy to expire. On maturity date, the maturity value is also paid in addition to the death benefits that would have been paid earlier.

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

Insurance Solutions for Individuals

ICICI Prudential Life Insurance offers a range of innovative, customer-centric products that meet the needs of customers at every life stage. Its products can be enhanced with up to 5 riders, to create a customized solution for each policyholder.

Savings Solutions

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

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

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

· CashBak is an anticipated endowment policy ideal for meeting milestone

expenses like a child's marriage, expenses for a child's higher education or

purchase of an asset.

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

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

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

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

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

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

Protection Solutions

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

·HomeAssure is a mortgage reducing term assurance plan designed specifically to help customers cover their home loans in a simple and cost-effective manner.

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Child Plans

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

Retirement Solutions

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

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

· Market-linked retirement products

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

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

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

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

Health Solutions

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

· Cancer Care: is a regular premium plan that pays cash benefit on the

diagnosis as well as at different stages in the treatment of various cancer

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conditions.

Group Insurance Solutions

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

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

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

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

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

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

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

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

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

5. Waiver of Premium: In case of total and permanent disability due to an accident, the premiums are waived till maturity. This rider is available with SecurePlus and cashplus.

MARKET SHARE

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MISSION AND VISION

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

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

Understanding the needs of customers and offering them superior products and service

Building long lasting relationships with their partners Providing an enabling environment to foster growth and learning for their

employees And above all building transparency in all our dealings.

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

MANAGEMENT TEAM

Management

Board of Directors

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

Shri K.V. Kamath, Chairman

Mr. Mark Tucker

Smt. Lalita D. Gupte

Mr. Danny Bardin

Mrs. Kalpana Morparia

Shri M.P. Modi

Mr. John Caouette

Shri S.P.Subhedar, (Alternate Director to Mr. Danny Bardin)

Mr. Derek Stott, (Alternate Director to Mr. Mark Tucker)

Smt. Shikha Sharma, Managing Director

Management Team

Ms. Shikha Sharma, Managing Director

Mr. Kevin Wright, Executive Vice President - Sales & Distribution

Ms. Madhavi Soman, Chief - Strategic Initiatives

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Mr. V. Rajagopalan, Appointed Actuary

Mr. Sandeep Batra, Chief Financial Officer & Company Secretary

Mr. Saugata Gupta, Chief - Marketing & Service

Mr. Shubhro J. Mitra, Chief - Human Resources

COMPARISION OF CHANGES IN ASSET AMONG COMPETITORS

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Analysis

Asset creation wise it is ranked 4th among all the competitors Faster Growth rate compared to most of the competitors It is one of the major contributor to the revenue of ICICI Bank

Findings

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

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

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

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

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

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

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

RECOMMENDATIONS TO COMPANY:

Since ICICI Prudential Life Insurance co. ltd is the largest in terms of FDI invested, in terms of work force, in terms of market share, in terms of no. of customers. All these positive stands of the company place at the number one position. On second aspect whatever amount of money ICICI Prudential save, can be used to increase the no. of policies, which will helpful to increase the market share of the company. Since the customers think about the companies in the industry, when they invest money in the life insurance industry. So it's necessary to increase the market share of the company. There are some recommendations.

· Open some more branches in semi urban and rural area.

ICICI Prudential has almost its branches in urban area or metros. So in order to increase the no. of customer, ICICI Prudential should increase the approach towards potential customers. For that it has to increase the branches in the semi urban cities like C, D grade cities. And the rural marketing is the best option for ICICI Prudential to increase its base in the market

· Improvement in customer services.

. Tranperancies in system

Being a market leader doesn't ensure the leadership in the future. Since after increment in FDI from 26% to 49% all player will have the opportunity to capture the market share. So in order to maintain its position ICICI Prudential should

-Introduce some new market linked insurance plan, which will give a competitive advantage to the ICICI Prudential against its competitors.

· Trained the financial advisors more efficiently.

In the changed scenario, more efficient training will be needed, so ICICI Prudential should provide good and efficient training to their financial advisors. Because they

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are the one who interact directly with the customers. So good training will give them the right way to deal with the potential customers.

2)General Insurance

The General Insurance industry in India dates back to the Industrial Revolution and the subsequent increase in trade across the oceans in the 17th century. As for Life Insurance, the British brought General Insurance to India, and a similar path was followed in the development of this industry. A number of private companies were in existence for years and years until, in 1971, the Indian Government decided that the public interest would be served by nationalizing the industry, merging all the 107 companies into four companies, depending on the sort of business transacted (Marine,Fire, Miscellaneous). These were the National Insurance Company Ltd., the Oriental Insurance Company Ltd., the New India Assurance Company Ltd., and the United India Insurance Company Ltd. located in Calcutta, New Delhi, Bombay and Madras respectively. The General Insurance Corporation (GIC) was set up in 1972 as a `holding' company, having these four companies as its subsidiaries.

Some of the important milestones in the general insurance business in India are:

1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of general insurance business.

1957: General Insurance Council, a wing of the Insurance Association of India, frames a code of conduct for ensuring fair conduct and sound business practices.

1968: The Insurance Act amended to regulate investments and set minimum solvency margins and the Tariff Advisory Committee set up.

1972: The General Insurance Business (Nationalization) Act, 1972 nationalize the general insurance business in India with effect from 1st January 1973. 107 insurers amalgamated and grouped into four companies viz. the National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd. and the United India Insurance Company Ltd. GIC incorporated as a company.

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ICICI LOMBARD

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

MARKET SHARE

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Major Competitors

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

FACTS/FINDINGS

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

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

3.Since Reliance Life Insurance is leading with several companies' policies it should be easy for them to penetrate into the market and secure a good position if they pay greater attention to the service part provided to their customer and thereby forming a long and trusted relationship.

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

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

CHAPTER-10

ICICI VENTURE FUNDS MANAGEMENT COMPANY LIMITED

With the recent spurt in entrepreneurship in the country, venture capital and private

equity capital financing are fast attaining a role of prominence. Uniquely

positioned to take the Indian entrepreneur further is ICICI Venture Funds, the

wholly owned subsidiary of ICICI, with its keen understanding of the Indian

Financial Markets, entrepreneurial ethos, access to global capital and a network

through influential global alliances. Strong parentage and affiliates provide ICICI

Venture with access to a broad spectrum of financial and analytical resources. An

affiliation with (Trust Company of the West) provides a platform for networking

Indian Companies to global markets and technology. ICICI Venture Funds

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currently manages / advises 11 Funds aggregating US$ 400 million, making it the

most significant private equity investor in the country. The investment experience

of ICICI Venture’s professionals is the foundation its strengths and success in

several areas of investing. ICICI Venture seeks to invest in opportunities where its

network through ICICI and TCW can create value for all involved. ICICI

Venture’s primary investment objective is capital investment through investments

by way of equity or equity-related securities in unlisted companies with significant

growth potential. ICICI Venture’s investments span a broad spectrum of industries

and stages of development, the investment focus being on

Information Technology

Biotechnology and Life Sciences

Media and entertainment

Retail Services

ICICI SECURITIES AND FINANCE COMPANY LIMITED

Formed in 1993 when ICICI’s Merchant Banking Division was spun off into a new

company, I-SEC today are India’s leading Investment Bank and one of the most

significant players in the Indian capital markets. Its client list includes some of the

best known, most respected names in Indian business and industry, and I-SEC

offers them what are probably the widest, most in-depth range of services in the

market, with the highest standards of professionalism. Backed by a strong

distribution network, I-SEC is acknowledged to be at the forefront of all new

developments in the Indian debt market. I-SEC Research Reports, Compendia,

Updates, I-BEX and sovereign Bond Index, have become industry standards,

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sought after by finance, business and reputed publications alike. The Project

Finance Group has helped take strategic projects from the drawing board to

financial closure, leveraging the expertise of parent organization. I-SEC has also

executed several assignments in M & A, including business valuations, spin-offs

and mergers, for both domestic and overseas clients. The range of products offered

by i-SEC includes:

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

Telecom Projects)

Fixed Income – Primary Dealership, Debt Research

Equities – Lend management, Underwriting, Syndication, Private Equity

placement, Sales, Trading, Broking, Sectoral and Company Research I - SEC

Continues to sustain a steady rate of growth by offering the most extensive

range of services combined with unrivalled standards of professionalism.

ICICI BROKERAGE SERVICES LIMITED

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

commenced its securities brokerage activities in February 1996 and is registered

with the National Stock Exchange of India Limited and The Stock Exchange,

Mumbai. We are a joint venture between ICICI and the leading financial services

provider in India, and prudential plc of U.K., one of the finest Life insurance

companies in the world. Together we provide you with an extensive range of

insurance products to suit your various needs at various life stages. We aim to keep

you covered, at every step in life. Their policies are need-specific and address

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particular age groups. This means that no matter where in life you are, we offer

specific products to suit your needs for savings, protection and retirement. Our

products can be categorized into the following:

Saving plans

Protection plans

Retirement plans

ICICI PERSONAL FINANCIAL SERVICES LIMITED

ICICI Personal Financial Services Limited (ICICI PFS), formerly ICICI-Credit,

was one of the first four companies to obtain registration as a Non-Banking

Financial Company (NBFC) from the Reserve Bank of India (RBI) on September

10, 1997 under the new section 45IA of the Reserve Bank of India Act, 1934.

During the year 1998-99, there was a significant shift in the Company’s operation

from leasing to hire purchase to distribution and servicing of all rental products for

the ICICI Group. It is now a focal point for marketing and distribution of all rental

asset products for ICICI, including auto loans, consumer durable finance and other

financial products. The Company has thus become part of ICICI’s retail strategy

aimed at offering a comprehensive range of products and services to retail

customers. In view of this reorientation of the business, the name of the Company

was changed from ICICI Credit Corporation to ICICI Personal Financial Services

Limited (ICICI PFS) effective March 22, 1999.

ICICI CAPITAL SERVICES LIMITED

ICICI Capital Services Ltd. was incorporated in the name of SCICI Securities Ltd.

on September 24, 1994 as a wholly owned subsidiary of erstwhile SCICI Ltd. with

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the objective of providing stock broking services to the institutional clients and

undertaking activities such as underwriting, primary market placements &

distribution industry & company research etc. After the amalgamation of SCICI

with ICICI effective from April 1, 1996, resulting in the change of the name. The

company is mandated, under review by ICICI, to carry out on its behalf the retail

resource raising activities and to provide front office services related to all retail

and semi retail liability products of ICICI. The company also operates the network

of ICICI Centers being set up by ICICI. As on date the company has set up 91

centers across the country.

ICICI INFOTECH

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

depth experience of having worked on varied technologies with leading

corporations worldwide. Our service portfolio includes the following:

IS & IT Consulting

Software Design and Development

Enterprise Application Integration

Value Chain Management Solutions (SCM, CRM etc.)

Application Re-engineering and Management Knowledge Management Solutions Embedded System Applications Technology Incubation, IT-enabled Services & IT Outsourcing

ICICI Capital Ltd.

Its products are

RBI Bonds E-invest (ICICI Direct.com)

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Fixed Deposits Mutual Funds Bonds Demat Equity IPO

MICRO FINANCE

Need for MicroFinance

Evolution of Microfinance in India

· Microfinance has been in practice for ages ( though informally).· Legal framework for establishing the co-operative movement set up in 1904.· Reserve Bank of India Act, 1934 provided for the establishment of the Agricultural Credit Department. · Nationalisation of banks in 1969· Regional Rural Banks created in 1975.· NABARD established as an apex agency for rural finance in 1982.· Passing of Mutually Aided Co-op. Act in AP in Considerable gap between demand and supply for all financial services.

Majority of poor are excluded fromfinancial services. This is due to, the following reasons:1. Bankers feel that it is fraught with risks and uncertainties.2. High transaction costs.3. Unfavourable policies like caps on interest rates which effectively limits.

While MFIs have shown that serving the poor is not an unviable propositionthere are issues that have constrained MFIs while scaling up. These include1. Lack of an appropriate legal vehicle.2. Limited access to equity.3. Difficulty in accessing low cost on-lending funds (as of now they are unable to offer savings services in a legitimate manner).

· Limited access to Capacity Building support which is an important variable in terms of quality of the portfolio, MIS, and the sustainability of operations.

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

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

MF is a Tool for Poverty Reduction

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

Constraints to scaling access for the poor Information Asymmetry High Costs of Intermediation

Inability of the poor to offer collateral.

No credit history available. Potential success of interprises

are difficult to evaluate.

Low value, high volume transactions.

High Transaction Costs (8-20%)· Low use of technology.· High supervision costs.· High cash handling costs.

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TWO INNOVATIVE MODELS

· THE DIRECT-ACCESS-BANK LED MODEL Promotion of Self Help Groups Leveraging upon the merger with the Rural Banking institution Bank of Madura

· THE INDIRECT CHANNEL PARTNERSHIP With Micro-Finance Institutions

Hence, the ICICI Bank PartnershipICICI MFI’S

Provider of loan funds,mezzanine equity and technology.

Lends directly to clients with risk sharing by NGO/MFI

Undertakes loans origination, monitoring and collection.

MFI provided OD limit by bank equivalent to amount of risk sharing, which is drawn in event of default upto specified limit.

Microcredit

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

Partnership model

Portfolio buyouts

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

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ICICI Venture Capital

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

· To cover this shortage,ICICI Bank is encouraging venture capitalists to

start entering the sector.

· Lok Capital at Delhi

· Aavishkar at Mumbai

· Bell Weather at Hyderabad

The Funds

· Bell Weather, Hyderabad has made 3 equity commitments for start up and

decided to raise fund amount from US $10mn to US $25mn.

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· Lok capital mobilizes and directs capital fund to finance microfinance initiatives

and technical support for MFI's.

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

CHAPTER-11

ANALYSIS

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

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Which means increase in net interest margin because no interest is charged on current a/c and a minimal interest of 3.5% for saving a/c.

Which reflects the operating efficiency of the organisation.

Highlights

35% increase in profit after tax to Rs. 6.15 billion in Q4-2008 from Rs. 4.55 billion in Q-2007.

22% increase in profit after tax to Rs. 20.05 billion in FY2008 compared to 16.37 billion in FY2007.

Improvements in net interest margin to 2.6% in FY2009 compared to 1.9% in FY2008.

79% increase in fee income to Rs. 20.98 billion in FY2008 from 11.75 billion inFY2007.

46% year-on-year growth in advances and 34% growth in total assets. 68% year-on-year growth in retail portfolio, now constituting 61% loans. Deposit growth of 47% in FY2008 compared to system deposit growth of

14%. Reduction in net NPA ratio to 2% on March 31,2009 from 2.9% on March

31,2004. Increase in operating margin 14.45% in fy’08 compared to 13.33% fy’07.

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INTERPRETATION

ICICI RATIO ANALYSIS

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

· In Feb 2008, In accordance with RBI guidelines for Accounting for securitization of standard assets, ICICI accounts for any loss arising on Securitization immediately at the time of sale and the profit/premium arising on account of securitization is amortized over the life of the asset.

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

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

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· Interest expenses has increase during 2007-2008 is primarily due to an increase of 55.2% in average interest-bearing liabilities to Rs. 2354.7 billion in the six-months period ended sep 30, 2008.

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

· Total deposits increased consequence to the general increases in interest rates reflecting a tight systemic liquidity scenario and increase in deposit rates for retail and other customers in Fiscal 2008.

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

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

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

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

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

· Provisions and contingencies (excluding provisions for tax) increases in primarily due to the significantly higher level of amortization of premium on

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government securities in fiscal 2006, investments in government securities and lower level of writ backs in fiscal 2008.

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

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

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

FINDINGS,SUGGESTIONS & CONCLUSION

Findings

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

The officials employed are very much enthusiastic about their job.

The officials try to make best relation with the customers.

There is separate counter for NRI services.

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

The registers and files are maintained on a daily basis.

The registers are maintained in a well organized manner.

The marketing strategy of the bank is very attractive.

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The bank always tries to attract customers with innovative offers.

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

· ICICI and SBI credit deposit ratio is on the side though ICICI banks shows a little decreasing trend to the exten of 2.24 % Over mar2007 _ mar 2008.

· Both the bank investment deposit ratio is on the declining trend

· Both the banks has shown better utilization of cash portfolio

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

· Other Income ratio remains fluctuation in both the banks.

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

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

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

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

· The continuation pattern negates immediate bearish momentum on the stock and it's advisable to buy at declines. Short term investor can initiate a buy above 500 with a target of 560 570.

SUGGESTIONS

1. Best play in a buoyant environment Favorable macro, buoyant Market related revenues and a benign environment for asset quality.

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· ICICI as a player focused on maintaining and /or improving Market share in key business segments, particularly retail lending- Will, in our view, benefit immensely form a positive operating Environment.

· ICICI is viewed as it is benefited from the procyclicality effect of The economic cycle as its borrowers in the legacy project financing Activity witnessed their debt servicing ability increasing considerably. It is believed that the profitability of this segment has improved as a Result of lower loan loss provisions and lower taxable rates of Income from this source. Expectations is on the procyclical benefit ,To continue and hence profitability of legacy lending to be sustained At levels seen earlier.

· Market related revenues is believed to contribute 14% - 15% to ICICIB's operating revenues and have boosted its preprovision RoAA. Buoyant environment to sustain the contribution from market -related revenues is expected and hence the operating profitability.

2. Pricing power in consumer financing segment profitability Against potential shocks.

· ICICIB enjoys a dominant market position across customer Categories in retail lending.The strong market position and robust Demand for consumer financing vests significant pricing power With ICICIB is believed either by allowing a hike in lending rats, Negotiating higher subvention form manufacturers of cutting Distribution costs.

· Strong pricing power and a balance sheet that is significantly Biased towards retail lending buffers ICICB's profitability from Potential shocks in the bank's funding cost.

· ICICB has an adverse mismatch profile between assets and Liabilities. High volatility in interest rates could adversely effect Profitability in the short term; however, as the back book gets Reprised at new lending rates upon maturity, the bank's NIM will Likely show improvement. This phenomenon to play out through FY1002E and FY2009E is expected.

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3. In line with consensus, but we recommend buy ICICIB for growth Reasons and not for the relative valuation appeal. It is not so much about ICICIB versus HSFC or HDFCB, but about Their respective operating metrics and growth conditions. Market Has rewarded both strategies: ICICIB's broad-based strategy allows capturing value across the Value chain in a customer segment; and ICICIB, like other large players in the private sector, enjoys Favorable conditions arising from a restrictive regulatory/policy Environment towards new entrants and foreign banks and slow Pace of reforms for state-owned banks is believed.

4. Increasing contribution from strategic investments Yet another driver

· The value accruing from subsidiaries to be 17% of ICICIB's Current marke capitization. This to rise to 20% of ICICIB's target Price over the next 12 months is expected with banking and life Insurance being the key drivers.

· The life insurance business of ICICIB has been incurring losses On an accounting basis due to continued investment in expznding The scale and scope of the business. The life insurance business is Believed in creating wealth for its shareholders through market Share gains, increasing penetration of life insurance and improving operating efficiency.

· The asset management and venture capital fund of ICICB makes A negligible contribution currently; however, these businesses is Believed to hold significant upside potential as they achieve scale Economies.

Conclusion

ICICI Bank has strong banking operations. They believe in customer satisfaction in every possible way. They are focused on quality of products and services rather than quantity of products and services. They have a strong banking solution such as FINACLE which was developed by Infosys. The bank is rapidly growing. They have a aggressive marketing strategy. The bank provides speedy way of services to its customer with satisfaction. T

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he Five plan really helps in the operation of the organization. The bank has spend millions of rupees in different types of investments on behalf of its customers. The bank is well known for its 90 days strategies. '90 days strategies' means whatever the bank wants to implement, implements within 90 days.

REFERENCE

www.rbi.org.in

www.moneycontrol.com

www.nseindia.com

www.icicibank.com

www.google.com

Economic times

Bussiness world

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