Cust Icici Bank.docx

CHAPTER -1 INTRODUCTION 1.1

INTRODUCTION TO BANKING IN INDIA

1.2

HISTORY OF BANKING IN INDIA

1.3

NATIONALIZATION OF BANKS IN INDIA

1.4

DEMERITS, LIMITATIONS - BANK NATIONALISATION IN INDIA

1.5

SCHEDULED COMMERCIAL BANKS IN INDIA

1.6

BANKING SERVICES IN INDIA

1.7

FUTURE OF BANKING IN INDIA

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1.1 INTRODUCTION TO BANKING IN INDIA: The banking section will navigate through all the aspects of the Banking System in India. It will discuss upon the matters with the birth of the banking concept in the country to new players adding their names in the industry in coming few years. The banker of all banks, Reserve Bank of India (RBI), the Indian Banks Association (IBA) and top 20 banks like IDBI, HSBC, ICICI, ABN AMRO, etc. has been well defined under three separate heads with one page dedicated to each bank. However, in the introduction part of the entire banking cosmos, the past has been well explained under three different heads namely: History of Banking in India Nationalization of Banks in India Scheduled Commercial Banks in India The first deals with the history part since the dawn of banking system in India. Government took major step in the 1969 to put the banking sector into systems and it nationalized 14 private banks in the mentioned year. This has been elaborated in Nationalization Banks in India. The last but not the least explains about the scheduled and unscheduled banks in India. Section 42 (6) (a) of RBI Act 1934 lays down the condition of scheduled commercial banks.

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1.2 HISTORY OF BANKING IN INDIA: Without a sound and effective banking system in India it cannot have a healthy economy. The banking system of India should not only be hassle free but it should be able to meet new challenges posed by the technology and any other external and internal factors.For the past three decades India's banking system has several outstanding achievements to its credit. The most striking is its extensive reach. It is no longer confined to only metropolitans or cosmopolitans in India. In fact, Indian banking system has reached even to the remote corners of the country.The government's regular policy for Indian bank since 1969 has paid rich dividends with the nationalization of 14 major private banks of India. Not long ago, an account holder had to wait for hours at the bank counters for getting a draft or for withdrawing his own money. Today, he has a choice. Gone are days when the most efficient bank transferred money from one branch to other in two days. Now it is simple as instant messaging or dials a pizza. Money has become the order of the day. The first bank in India, though conservative, was established in 1786. From 1786 till today, the journey of Indian Banking System can be segregated into three distinct phases. They are as mentioned below: Early phase from 1786 to 1969 of Indian Banks Nationalization of Indian Banks and up to 1991 prior to Indian banking sector Reforms. New phase of Indian Banking System with the advent of Indian Financial& Banking Sector Reforms after 1991.

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1.3 NATIONALIZATION OF BANKS IN INDIA: After independence the Government of India (GOI) adopted planned economic development for the country (India). Accordingly, five year plans came into existence since 1951. This economic planning basically aimed at social ownership of the means of production. However, commercial banks were in the private sector those days. In 1950-51 there were 430 commercial banks. The Government of India had some social objectives of planning. These commercial banks failed helping the government in attaining these objectives. Thus, the government decided to nationalize 14 major commercial banks on 19th July, 1969. All commercial banks with a deposit base over Rs.50 crores were nationalized. It was considered that banks were controlled by business houses and thus failed in catering to the credit needs of poor sections such as cottage industry, village industry, farmers, craft men, etc. The second dose of nationalisation came in April 1980 when banks were nationalized. The nationalisation of commercial banks took place with an aim to achieve following major objectives. 1. Social Welfare : It was the need of the hour to direct the funds for the needy and required sectors of the indian economy. Sector such as agriculture, small and village industries were in need of funds for their expansion and further economic development. 2. Controlling Private Monopolies : Prior to nationalisation many banks were controlled by private business houses and corporate families. It was necessary to check these monopolies in order to ensure a smooth supply of credit to socially desirable sections. 3. Expansion of Banking : In a large country like India the numbers of banks existing those days were certainly inadequate. It was necessary to spread banking across the country. It could be done through expanding banking network (by opening new bank branches) in the un-banked areas. 4. Reducing Regional Imbalance : In a country like India where we have a urban-rural divide; it was necessary for banks to go in the rural areas where the banking facilities were not available. In order to reduce this regional imbalance nationalisation was justified: 5. Priority Sector Lending : In India, the agriculture sector and its allied activities were the largest contributor to the national income. Thus these were labeled as the priority sectors. But unfortunately they were deprived of their due share in the credit. Nationalisation was urgently needed for catering funds to them.

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6. Developing Banking Habits : In India more than 70% population used to stay in rural areas. It was necessary to develop the banking habit among such a large population.

1.4 DEMERITS, LIMITATIONS - BANK NATIONALISATION IN INDIA Though the nationalisation of commercial banks was undertaken with tall objectives, in many senses it failed in attaining them. In fact it converted many of the banking institutions in the loss making entities. The reasons were obvious lethargic working, lack of accountability, lack of profit motive, political interference, etc. Under this backdrop it is necessary to have a critical look to the whole process of nationalisation in the period after bank nationalisation. The major limitations of the bank nationalisation in India are:1. Inadequate banking facilities : Even though banks have spread across the country; still many parts of the country are unbanked. Especially in the backward states such as the Uttar Pradesh, Madhya Pradesh, Chhattisgarh and north-eastern states of India. 2. Limited resources mobilized and allocated : The resources mobilized after the nationalisation is not sufficient if we consider the needs of the Indian economy. Some times the deposits mobilized are enough but the resource allocation is not as per the expansions. 3. Lowered efficiency and profits : After nationalisation banks went in the government sector. Many times political forces pressurized them. Banking was not done on a professional and ethical grounds. It resulted into lower efficiency and poor profitability of banks. 4. Increased expenditure : Due to huge expansion in a branch network, large staff administrative expenditure, trade union struggle, etc. banks expenditure increased to a dangerous levels. 5. Political and Administrative Inference : Many public sector banks badly suffered due to the political interference. It was seen in arranging loan meals. It ultimately resulted in huge non-performing assets (NPA) of these banks and inefficiency.

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These are several limitations faced by the banks nationalisation in India. Apart from this there are certain other limitations as well, such as weak infrastructure, poor competitiveness, etc. But after Economic Reform of 1991, the Indian banking industry has entered into the new horizons of competitiveness, efficiency and productivity. It has made Indian banks more vibrant and professional organizations, removing the bad days of bank nationalisation. List of Total Nationalized Banks in India:1.Indian bank 2.Indian overseas bank 3.Oriental bank of commerce 4.Punjab national bank 5.Punjab and sindh bank 6.Syndicate bank 7.Union bank of india 8.United bank of india 9.UCO bank 10.Vijaya bank 11.Allahabad bank 12.Andhra bank 13.Bank of baroda 14.Bank of India 15.Bank of Maharastra 16.Canara bank 17.Central bank of india 18.Corporation bank 19.Dena bank 20. IDBI bank

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1.5 SCHEDULED COMMERCIAL BANKS IN INDIA: The commercial banking structure in India consists of: Scheduled Commercial Banks in India Non scheduled Banks in India

Scheduled Commercial Banks in India: Scheduled Banks in India constitute those banks which have been included in the Second Schedule of Reserve Bank of India (RBI) Act, 1934. RBI in turn includes only those banks in this schedule which satisfy the criteria laid down vide section 42 (6) (a) of the Act. As on 30th June, 1999, there were 300 scheduled banks in India having a total network of 64,918 branches. The scheduled commercial banks in India comprise of State bank of India and its associates (8), nationalized banks (19), foreign banks (45), private sector banks (32), co-operative banks and regional rural banks. "Scheduled banks in India" means the State Bank of India constituted under the State Bank of India Act, 1955 (23 of 1955), a subsidiary bank as defined in the State Bank of India (Subsidiary Banks) Act, 1959 (38 of 1959), a corresponding new bank constituted under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970), or under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980), or any other bank being a bank included in the Second Schedule to the Reserve Bank of India Act, 1934 (2 of 1934), but does not include a co-operative bank". "Non-scheduled bank in India" means a banking company as defined in clause (c) of section 5 of the Banking Regulation Act, 1949 (10 of 1949), which is not a scheduled bank". The following are some of the Scheduled Banks in India (Public Sector): State Bank of India Allahabad Bank 7|Page

Bank of India Central Bank of India Dena Bank The following are some of the Scheduled Banks in India (Private Sector): Axis Bank Ltd HDFC Bank Ltd Bank of Punjab Ltd IDBI Bank Ltd ICICI Bank Ltd

The following are some of the Scheduled Foreign Banks in India: American Express Bank Ltd. Bank of Tokyo Ltd. Citi Bank N.C. Standard Chartered Bank.

Non Scheduled Commercial Banks in India: Non-Scheduled Bank refers to the banks which are not listed in the Second Schedule of Reserve Bank of India.

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In finer terms, the banks which do not comply with the provisions specified by the central bank, within the meaning of the Reserve Bank of India Act, 1934, or as per specific functions, etc. or as per the judgement of the RBI, are not able to serve and protect the depositor’s interest, are known as non-scheduled banks. Non-Scheduled Banks are also required to maintain the cash reserve requirement, not with the RBI, but with themselves. These are local area banks.

1.6 BANKING SERVICES IN INDIA: With years, banks are also adding services to their customers. The Indian banking industry is passing through a phase of customers market. The customers have more choices in choosing their banks. A competition has been established within the banks operating in India.With stiff competition and advancement of technology, the services provided by banks have become more easy and convenient. The past days are witness to an hour wait before withdrawing cash from accounts or a cheque from north of the country being cleared in one month in the south. This section of banking deals with the latest discovery in the banking instruments along with the polished version of their old systems. 9|Page

Bank Account: The most common and first service of the banking sector. There are different types of bank account in Indian banking sector. The bank accounts are as follows: Bank Savings Account - Bank Savings Account can be opened for eligible person / persons and certain organizations / agencies (as advised by Reserve Bank of India (RBI) from time to time) Bank Current Account - Bank Current Account can be opened by individuals / partnership firms / Private and Public Limited Companies / HUFs / Specified Associates / Societies / Trusts, etc. Bank Term Deposits Account - Bank Term Deposits Account can be opened by individuals / partnership firms / Private and Public Limited Companies / HUFs/ Specified Associates / Societies / Trusts, etc. Bank Account Online - With the advancement of technology, the major banks in the public and private sector has facilitated their customer to open bank account online. Bank account online is registered through a PC with an internet connection. The advent of bank account online has saved both the cost of operation for banks as well as the time taken in opening an account.

Plastic Money: 10 | P a g e

Credit cards in India are gaining ground. A number of banks in India are encouraging people to use credit card. The concept of credit card was used in 1950 with the launch of charge cards in USA by Diners Club and American Express. Credit card however became more popular with use of magnetic strip in 1970.Credit card in India became popular with the introduction of foreign banks in the country. Credit cards are financial instruments, which can be used more than once to borrow money or buy products and services on credit. Basically banks, retail stores and other businesses issue these.

Loans: Banks in India with the way of development have become easy to apply in loan market. The following loans are given by almost all the banks in the country: Personal Loan Car loan or Auto Loan Loan against Shares Home Loan Education Loan or Student Loan

Personal loan : A personal loan is a type of unsecured loan and helps you meet your current financial needs. You don’t usually need to pledge any security or collateral while availing a personal loan and your lender provides you with the flexibility to use the funds as per your need. It can serve as your solution for managing your travel costs and wedding expenses as well as the expenses of a medical emergency, home renovation, debt consolidation and others.

Car Loan or Auto Loan:

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A car loan is a personal loan that allows the potential buyer to pay the vehicle off in monthly payments instead of having to pay the full price all at once. This means that a lending servicer or bank will pay off the car in full, while in return the borrower pays off the debt in monthly payments with an interest fee included as well.

This type of personal loan may be either a secured or non-secured loan depending on the situation they are in. But for the most part lenders will usually offer a loan that is secured just in case the borrower falls behind on their payments and fails to pay off the debt. If the borrower fails to pay the monthly payments, their lender will repossess the car to pay off the debt. To qualify for an unsecured loan the borrower must have a very high credit score and also issue a higher interest rate on the loan as well. Most of the time lenders will be very quick to offer a secured loan even with bad credit, because of the fact that the vehicle is used as collateral if the borrower fails to pay. People with a very low credit rating may be able to take advantage of this loan by paying all the monthly payments on time. By doing this they will be able to begin restoring their credit score.

Loan against Shares: Loan against shares and securities is a loan where you pledge your shares, mutual funds or life insurance policies or bonds as collateral to the bank against your loan amount. These loans are very useful in times when cash is needed urgently for any personal or business requirement. Loans against shares are a popular form of getting short or long term loans and the repayment period extends to up to 36 months. The list of securities against which one can get a loan will differ from lender to lender and loan amount can range between Rs.50,000 to Rs.20 lakh. Home Loan: Loan acquired from a financial institution to purchase a home. Home loans consist of an adjustable or fixed interest rate and payment terms. Home loans may also be referred to as mortgage loans.

Student loan or Education Loan: An education loan is a loan taken to help pay for an education, usually at a college or trade school, but may also be used to pay for private schools or prep schools as well. These loans are available in several different types.

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These are student loans, parent loans and private loans. Loans are also either guaranteed or unguaranteed. Student and parent loans are most likely to be guaranteed by the government, though many agencies work for the government in this respect. Unguaranteed or unsubsidized loans are usually from private lenders only, and usually can only be obtained if one has a good credit score or significant equity.

The student loan is usually the best choice education loan for a student whose parents cannot pay for his or her education. While the student remains in school, interest on this type of loan accrues and is paid for by the government. When the student stops attending school, the loan is usually paid off in payments. These payments can be quite large if the loan is large, so students should borrow only what they need. Money Transfer: Beside lending and depositing money, banks also carry money from one corner of the globe to another. This act of banks is known as transfer of money. This activity is termed as remittance business. Banks generally issue Demand Drafts, Banker's Cheque, Money Orders or other such instruments for transferring the money. This is a type of Telegraphic Transfer or Tele Cash Orders. It has been only a couple of years that banks have jumped into the money transfer businesses in India. The international money transfer market grew 9.3% from 2003 to 2004 i.e. from US$213 bn. to US$233 bn. in 2004. Economists say that the market of money transfer will further grow at a cumulative 12.1% average growth rate through 2018.

1.7 FUTURE OF BANKING IN INDIA: A healthy banking system is essential for any economy striving to achieve good growth and yet remain stable in an increasingly global business environment. The Indian banking system has witnessed a series of reforms in the past, like deregulation of interest rates, dilution of government stake in PSBs, and increased participation of private sector banks. It has also undergone rapid changes, reflecting a number of underlying developments. This trend has created new competitive threats as well as new opportunities. Given the competitive market, banking will (and to a great extent already has) become a process of choice and convenience. The future of banking would be in terms of integration. This is already becoming a reality with new-age banks such as YES Bank ICICI Bank, and others too adopting a single-PIN, OTP facility. Geography will no longer be an inhibitor. Technology will prove to be 13 | P a g e

the differentiator in the short-term but the dynamic environment will soon lead to its saturation and what will ultimately be the key to success will be a better relationship management. If one were to say that the future of banking in India is bright, it would be a gross understatement. With the growing competition and convergence of services, the customers stand Only to benefit more to say the least. At the same time, emergence of a multitude of complex financial instruments is foreseen in the near future (the trend is visible in the current scenario too) which is bound to confuse the customer more than ever unless she spends hours (maybe days) to understand the same. Hence, I see a growing trend towards the importance of relationship managers. The success (or failure) of any bank would depend not only on tapping the untapped customer base (from other departments of the same bank, customers of related similar institutions or those of the competitors) but also on the effectiveness in retaining the existing base. India has witness to a sea change in the way banking is done in the past more than two decades. Since 1991, the Reserve Bank of India (RBI) took steps to reform the Indian banking system at a measured pace so that growth could be achieved without exposure to any macro-environment and systemic risks. Some of these initiatives were deregulation of interest rates, dilution of the government stake in public sector banks (PSBs), guidelines being issued for risk management, asset classification, and provisioning. Technology has made tremendous impact in banking. ‘Anywhere banking’ and ‘Anytime banking’ have become a reality. The financial sector now operates in a more competitive environment than before and intermediates relatively large volume of international financial flows. In the wake of greater financial deregulation and global financial integration, the biggest challenge before the regulators is of avoiding instability in the financial system.

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CHAPTER II

RESEARCH METHODOLOGY

2.1 OBJECTIVE OF THE PROJECT 2.2 RESEARCH OBJECTIVE 2.3 RESEARCH METHODOLOGY 2.4 RESEARCH DESIGHN 2.5 SCOPE OF PROJECT 2.6 SOURCES OF DATA COLLECTION

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2.1 OBJECTIVE OF PROJECT: The main objectives of this project are the following: 

To study the concept of recruitment and selection.

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To study the recruitment and selection procedure in ICICI BANK.

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To study SWOT analysis of ICICI BANK.

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To study about ICICI BANK and its related aspects like its products & services, history, organizational structure, subsidiary companies etc.

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To identify the probable area of improvement to make recruitment and selection procedure more effective.

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To understand the major attributes of customer satisfaction.

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To determine the main factors influencing the level of customer satisfaction in ICICI Bank.

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To assess the level of customer satisfaction on the quality of service provided by the ICICI Bank.

 To study consumer perception about the ICICI Bank

2.2 RESEARCH OBJECTIVE This Study will help us to understand the consumer’s satisfaction about banking services and products. This study will help banks to understand, how a consumer selects, organizes and interprets the Quality of service and product offered by banks. The market is more aware and realistic about investment and returns from financial products. In this background this study tries to analysis the customer satisfaction towards banking services in general and ICICI Bank in particular.

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2.3 RESEARCH METHODOLOGY Data Type

:

Primary Data

Sample unit

:

Students, busine ssman, Housewives

Sampling Type

:

Simple Random Sampling

Sample Size

:

50

Research tool

:

Survey

Type of Research

:

Descriptive Research

Data Collection Method

:

Questionnaire

2.4 RESEARCH DESIGN: A descriptive study tries to discover answers to the questions who, what, when, where, and, sometimes, how. The researcher attempts to describe or define a subject, often by creating a profile of a group of problems, people, or events. Such studies may involve the collection of data and the creation of a distribution of the number of times the researcher observes a single event or characteristic (the research variable), or they may involve relating the interaction of two or more variables. Organizations that maintain databases of their employees, customers, and suppliers already have significant data to conduct descriptive studies using internal information. Yet many firms that have such data files do not mine them regularly for the decision-making insight they might provide. This descriptive study is popular in business research because of its versatility across disciplines. In for-profit, not-for-profit and government organizations, descriptive investigations have a broad appeal to the administrator and policy analyst for planning, monitoring, and evaluating. In this context, how questions address issues such as quantity, cost, efficiency, effectiveness, and adequacy. Descriptive studies may or may not have the potential for drawing powerful inferences. A descriptive study, however, does not explain why an event has occurred or why the variables interact the way they do.

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SAMPLE METHOD: Convenience sampling method is used for the survey of this project. It is a non-probability sample. This is the least reliable design but normally the cheapest and easiest to conduct .In this method Researcher have the freedom to choose whomever they find, thus the name convenience. Example includes informal pools of friends and neighbors or people responding to a newspaper’s invitation for readers to state their position on some public issue.

SAMPLE SIZE: Sample size denotes the number of elements selected for the study. For the present study, 50 respondents were selected at random. All the 50 respondents were the customers of different branches of ICICI Bank.

SAMPLING METHOD: A sample is a representative part of the population. In sampling technique, information is collected only from a representative part of the universe and the conclusions are drawn on that basis for the entire universe.

2.5 SCOPE OF THE STUDY: The banking industry in India has a huge canvas of history, which covers the traditional banking Practices from the time of Britishers to the reforms period, nationalization to privatization of banks and now increasing numbers of foreign banks in India. Therefore, Banking in India has been through a long journey. Banking industry in India has also achieved a new height with the changing times. The use of technology has brought a revolution in the working style of the banks. Nevertheless, the fundamental aspects of banking i.e. trust and the confidence of the people on the institution remain the same. The majority of the banks are still successful in keeping with the confidence of the shareholders as well as other stakeholders. However, with the changing dynamics of banking business brings new kind of risk exposure.

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2.6 SOURCES OF DATA COLLECTION The study of project is based on both Primary and Secondary collection data Primary Data: The primary data will be collected by bank visit to ICICI Bank through direct interview. Questionnaire will be prepared for the bank manager to get insight view about Human resource practices in various banks.

Secondary Data: The secondary data will be collected with the help of different books, internet websites, white papers, articles, magazines and newspapers.

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CHAPTER -3 LITERATURE REVIEW 3.1 Literature Review

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LITERATURE REVIEW Satisfaction means a feeling of pleasure because one has something or has achieved something. It is an action of fulfilling a need, desire, demand or expectation. Every rationale customer compares the cost (price) and benefit (utility) of any product or Services. Customers compare their expectations about specific product/services and its actual benefits. This comparison results into three types of customers: dissatisfied Customers (expectations are more than actual performance of the service); satisfied Customers (actual benefits realized from services are equal to or more than expectations); indifferent customers (actual performance and expectation are exactly equal). Westbrook (1981) reported that overall satisfaction is the outcome of customer's evaluation of a set of experiences that are linked with the specific service provider. It is observed that organization's concentration on customer expectations resulted into greater Satisfaction (Peters and Waterman, 1982). Kotler (2000) defined satisfaction as a person’s feelings of pleasure or disappointment resulting from the comparison of Product’s perceived performance in reference to expectations. Customers' feelings and Beliefs also affect their satisfaction level. It is said that satisfaction is a function of Customer’s belief about fair treatment (Hunt, 1991). Customer satisfaction has become important due to increased competition as it is considered very important factor in the determination of bank's competitiveness (Bartell, 1993; Haron et al. 1994).Satisfaction is a post purchase evaluative judgment associated with a specific purchase decision (Churchill and Suprenant, 1992). The customer Satisfaction is indispensable for the successful survival of any organization. Continuous measurement of satisfaction level is necessary in a systematic manner (Chakravarty et al.1996; Chit wood, 1996; Romano and Sanfillipo, 1996).

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Customer Satisfaction in Banking: Financial liberalization and deregulation has increased the competition among banks to attract potential customers. Every banker tries to provide superior services to keep satisfied customers. Satisfied customer is the real asset for any organization that ensures long-term Profitability even in the era of great competition. It is found that satisfied customer repeat his/her experience to buy the products and also creates new customers by communication of positive message about it to others (Dispensa, 1997). On the other hand, dissatisfied Customer may switch to alternative products/services and communicate negative message to others. So, organizations must ensure the customer satisfaction regarding their Goods/services (Gulledge, 1996).

Expectation-Outcome Experience of Customers:

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CHAPTER- 4 ICICI BANK PROFILE 4.1 HISTORY 4.2 INTRODUCTION 4.3 ICICI MILESTONES 4.4 GEOGRAPHICAL AREAS 4.5 COMPANY PROFILE 4.6 PRODUCTS AND SERVICES BANKING ACCOUNTS 4.7 INVESTMENT PRODUCTS 4.8 SWOT ANALYSIS OF ICICI BANK 4.9 COMPITITORS INFORMATION 4.10 MARKET SHARE OF ICICI BANK 4.11 THE KEY CHALLENGES

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INTRODUCTION 4.1 History ICICI Bank was established in 1996 by the Industrial Credit and Investment Corporation of India, an Indian financial institution, as a wholly owned subsidiary. The parent company was formed in 1955 as a joint-venture of the World Bank, India's public-sector banks and public-sector insurance companies to provide project financing to Indian industry. The bank was initially known as the Industrial Credit and Investment Corporation of India Bank, before it changed its name to the abbreviated ICICI Bank. The parent company was later merged into ICICI Bank. ICICI Bank launched internet banking operations in 1998 ICICI's shareholding in ICICI Bank was reduced to 46 percent, through a public offering of shares in India in 1998, followed by an equity offering in the form of American Depositary Receipts on the NYSE in 2000. ICICI Bank acquired the Bank of Madura Limited in an all-stock deal in 2001, and sold additional stakes to institutional investors during 2001-02. In the 1990s, ICICI transformed its business from a development financial institution offering only project finance to a diversified financial services group, offering a wide variety of products and services, both directly and through a number of subsidiaries and affiliates like ICICI Bank. In 1999, ICICI become the first Indian company and the first bank or financial institution from non-Japan Asia to be listed on the NYSE. In 2000, ICICI Bank became the first Indian bank to list on the New York Stock Exchange with its five million American depository shares issue generating a demand book 13 times the offer size. In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger of ICICI and two of its wholly owned retail finance subsidiaries, ICICI Personal Financial Services Limited and ICICI Capital Services Limited, with ICICI Bank. The merger was approved by shareholders of ICICI and ICICI Bank in January 2002, by the High Court of Gujarat at Ahmadabad in March 2002, and by the High Court of Judicature at Mumbai and the Reserve Bank of India in April 2002. In 2008, following the 2008 financial crisis, customers rushed to ATM's and branches in some locations due to rumors of adverse financial position of ICICI Bank. The Reserve Bank of India issued a clarification on the financial strength of ICICI Bank to dispel the rumors.

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4.2 INTRODUCTION ICICI Bank Limited is an Indian diversified financial services company headquartered in Mumbai, Maharashtra. It is the second largest bank in India by assets and third largest by market capitalization. It offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialized subsidiaries in the areas of investment banking, life and non-life insurance, venture capital and asset management. The Bank has a network of 2,630 branches and 8,003 ATM's in India, and has a presence in 19 countries, including India.

The bank has subsidiaries in the United Kingdom, Russia, and Canada; branches in United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International Finance Centre; and representative offices in United Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia. The company's UK subsidiary has established branches in Belgium and Germany. ICICI Bank is India’s largest private sector bank in market capitalization and second largest overall in terms of assets. The bank has a network of 1,626 branches and about 4,883 ATMs in India and presence in 18 countries. The industrial credit and investment corporation of India limited (ICICI) was incorporated in 1955 at the initiative of World Bank, the government of India and representatives of Indian industry, with the objective of creating a development financial institution for providing medium– term and long- term project financing to Indian businesses. A.Ramaswami Mudaliar is elected as the first chairman of ICICI Limited.

SANDEEP BAKHSHI is currently managing director and CEO of ICICI Bank.

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4.3 ICICI MILESTONES 

1988: Promoted TDICI – India’s first venture capital company.

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

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1999: ICICI becomes the first Indian company to get listed on the NYSE through an issue of American depository shares.

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2000: ICICI BANK became the first commercial bank from India to get its stock listed on the NYSE.

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TECHNOLOGY USED IN ICICI BANK: ICICI use many type of advance technological software like Pinnacle 7.0 and Pinnacle7.016.Among from this software ICICI bank uses the e-banking, core banking, mobile banking electronic display. ICICI Bank was using Teradata for its data warehouse. However, due to its proprietary hardware, the cost of procurement, upgrades and administration was soaring. The closed box architecture of Teradata imposed restrictions on scalability. Secondly, querying and loading could not happen simultaneously. Queries could only be run during business hours because the loading of data had to take place during off business hours. This meant that the refresh rate of EDW was delayed, so queries may not reflect the most current data. ICICI Bank was also dependent on Teradata for support and other activities: The bank was completely tied down to that solution.

These issues compelled ICICI Bank to look for more efficient and flexible solutions. The solution would have to address not only current issues, but accommodate future growth expectations and business requirements. ICICI Bank evaluated numerous data warehousing solutions in the pursuit of solving its issues, and developed a shortlist of alternatives for its migration proof-of-concept: Sybase, SAS and Netezza. The primary criteria for evaluation were the price-to-performance ratio where Sybase IQ emerged the clear winner. During this rigorous testing, Sybase IQ delivered faster results on independent hardware and operating systems with minimum infrastructure. Commending the improvements achieved, Amit Sethi, Joint General Manager, ICICI bank says, "What impressed us was that even with overall lower costs, we could achieve significantly better query performance after implementing the Sybase enterprise warehouse solution." ICICI Infotech today launched an enterprise resource planning (ERP) solution for the small and medium enterprises.

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The ERP package - Orion Advantage - comes bundled with an HP dual processor Xeon server, Oracle 9i database, Windows 2003 server and costs about Rs 9.90 lakh and has a 15-user license.

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An ERP package helps a manufacturer or any other business implementing it to manage all the important parts in the company such as product planning, parts purchasing, maintaining inventory and interacting with suppliers and customers.

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ICICI Infotech officials told a press conference here today that Orion Advantage offered a set of business practice solutions for industry segments such as engineering, auto ancillary, pharmaceuticals, chemicals and IT distribution. Besides the cost advantage, the ERP package also came pre-configured. ICICI Infotech had mapped the processes specific to each industry segment into the package.

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Mr. R.K. Kanthi, Deputy General Manager, ICICI Infotech, said there was no ERP packagefor the SMEs that bundled the server, database and operating system right now. That was the advantage ICICI Infotech offered to SMEs as Orion Advantage came bundled and preconfigured. Besides the high cost of generic ERP packages, their implementation time as far as SMEs were concerned was also long. Orion Advantage could be installed in 45 days.

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ICICI Infotech had signed up six customers so far for the package and hoped to garner a 15 per cent market share of the SME segment, whose number in the country was estimated at 2.30 lakh.



We can see that the how technology gives the best results in the below diagram. There are drastically changes seen in the use of Internet banking, in a year 2001 (2%) and in the year 2008 (25%).

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Centralized Processing Units

Derived Economies Of Scale

Electronic Straight through Processing

Reduced Transaction Cost

Data Warehousing,CRM

Improve Cost Efficiency,Cross Sell

Innovative Technology Application

Provide New Or Superior Products



The country’s middle class accounts for over 320 million people. In correlation with the growth of the economy, rising income levels, increased standard of living, and affordability of banking products are promising factors for continued expansion.

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4.4 GEOGRAPHICAL AREAS

 Haryana  Mumbai  Chennai  Bangalore  Delhi  Karnataka  Bihar  Orissa

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4.5 COMPANY PROFILE ORGANIZATION STRUCTURE OF ICICI BANK 

Retail banking.



Wholesale banking



Project finance and special assets management



International business



Corporate bank

Retail banking is banking in which banking institutions execute transactions directly with consumers, rather than corporations or other banks. Services offered include savings and transactional accounts, mortgages, personal loans, debit cards, and credit cards. Wholesale banking is the provision of services by banks to the likes of Mortgage Brokers, large corporate clients, mid-sized companies, real estate developers and investors, international trade finance businesses, institutional customers (such as pension funds and government entities/agencies), and services offered to other banks or other financial institutions. Project finance is the medium- to long-term financing of infrastructure and industrial projects based upon the projected cash flows of the project rather than the balance sheets of the project sponsors.

Special assets management 1. The management of a client's investments by a financial services company, usually an investment bank. The company will invest on behalf of its clients and give them access to a wide range of traditional and alternative product offerings that would not be to the average investors. 2. An account at a financial institution that includes checking services, credit cards, debit cards, margin loans, the automatic sweep of cash balances into a money market fund, as well as brokerage services.

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An International Banking Facility (IBF) is a separate account established by a U.S. bank, or a US branch/subsidiary of a foreign bank, or an Edge Act Corporation in the United States to offer services to only non-US residents and institutions. The services offered include deposit and loan services. (Note, an IBF is not necessarily a separate legal entity.) One Corporate Centre is an office skyscraper in Pasig City, Metro Manila, Philippines. It is the 13th-tallest building in the country and Metro Manila as well with a height of 202 meters (662.73 feet)

[3]

from ground to tip of architectural antenna. The building has 45 floors above ground

including 7 floors for commercial purposes, and 9 basement levels for parking

VISION AND MISSION OF ICICI BANK VISION 

To ensure most cost effective power for sustained growth of India.



To provide clean and green power for secured future of countrymen



Constituent associates & stakeholders.



To continuously upgrade & update knowledge & skill set of its human resources.



To achieve excellence in every activity we undertake

MISSION We will leverage our people, technology, speed and financial capital to: 

Expand the frontiers of our business globally.



Play a proactive role in the full realization of India’s potential.



Maintain high standards of governance and ethics.



Create value for our stakeholders.



To ensure most cost effective power for sustained growth of India.



To provide clean and green power for secured future of countrymen.



To achieve excellence in every activity we undertake

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4.6 PRODUCTS AND SERVICES BANKING ACCOUNTS

Loan Product

Deposit Product

Investment & Insurance

Auto loan

Savings A/C

Mutual Funds

Loan against

Current A/C

Bonds

security

Fixed Deposits

Knowledge Centre

Loan against

Demat A/C

Insurance

property

Safe Deposit

General And Health

Personal loan

Lockers

Insurance

2- wheeler loan

Equity And

Commercial

Derivatives

vehicles finance

Mudra Gold Bar

Home loans Retail business banking Tractor loan Working capital finance Construction Equipment finance Health care finance Education loan Gold loan

Cards

Payment Services

Access To Bank

Credit Card

Net Safe

Net Banking

Debit Card

Merchant

One View

Prepaid Card

Prepaid Refill

InstaAlert Mobile

Bill Pay

Banking

Visa Bill Pay

ATM

--------------------------------

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Forex services

--------------------------------

Direct Pay

Email Statements

VisaMoney

Branch Network

Product And

Transfers

Services

E-Monies Electronic

Trade Services

Funds Transfer O

Forex Service

Online Payment

Branch Locater

Direct Tax

f

RBI Guidelines

ACCOUNT ICICI Bank offers a wide range of banking accounts such as Current, Saving, Life Plus Senior, Recurring Deposit, Young Stars, Salary Account etc. tailor-made for every customer segments, from children to senior citizens. Convenience and ease to access are the benefits of ICICI Bank accounts.

 YOUNG STARS ACCOUNT A special portal for children to learn banking basics, manage personal finances and have a lot of fun.

 BANK@CAMPUS This student banking services gives students access to their account details at the click of a mouse. Plus, the student gets a cheque book, debit card and annual statements.

 SAVINGS ACCOUNT Convenience is the name of the game with ICICI bank’s savings account. Whether it is an ATM/debit card, easy withdrawal, easy loan options or internet banking, ICICI bank’s saving account always keep you in touch of money.

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 FIXED DEPOSITES ICICI Bank offers a range of deposit solutions to meet varying needs at every stage of life. It offers a range of tenures and other features to suit all requirements.

INSURANCE The ICICI group offers a range of insurance products to cover varying needs ranging from life, pensions and health, to home, motor and travel insurance. The Products are made accessible to customers through a wide network of advisors, banking partners, corporate agents and brokers with the added convenience of being able to buy online.

 LIFE INSURANCE The ICICI group provides the many life insurance products through ICICI Prudential Life Insurance Company.

 GENERAL INSURANCE The ICICI group provides the many general insurance products like motor, t r a v e l a n d h o m e i n s u r a n c e t h r o u g h I C I C I L o m b a r d G e n e r a l I n s u r a n c e Company.

LOANS ICICI bank offers a range of deposits solutions to meet varying needs at every stage of life. It offers a range of tenures and other features to suit all requirements.

 HOME LOANS The No. 1 Home Loans Provider in the country, ICICI Bank Home Loans offers some unbeatable benefits to its customers - Doorstep Service, Simplified Documentation and Guidance throughout the Process. It’s really easy!

 PERSONAL LOANS ICICI Bank Personal Loans are easy to get and absolutely hassle free. With minimum documentation you can now secure a loan for an amount up to Rs. 15 lakhs. 34 | P a g e

 VEHICLE LOANS The No. 1 financier for:-

1. Car loans Network of more than 2500 channel partners in over 1000 locations. Tie-ups with all leading automobile manufacturers to ensure the best deals. Flexible schemes & Quick processing is the main advantages are here.

Avail attractive schemes at competitive interest rates from the No 1 Financier for:-

2. Two wheelers loans Finance facility up to 90% of the On Road Cost of the vehicle, repayable in convenient repayment options and comfortable tenors from 6 months to 36 months.

CARDS ICICI Bank offers a variety of cards to suit different transactional needs. Its range includes Credit Cards, Debit Cards and Prepaid cards. These cards offer you convenience for financial transactions like cash, withdrawal, shopping and travel. These cards are widely accepted both in India and abroad.

 CREDIT CARD ICICI Bank Credit Cards give you the facility of cash, convenience and arrange of benefits, anywhere in the world. These benefits range from lifetime free cards, Insurance benefits, global emergency assistance service, discounts, utility payments, travel discounts and much more.

 DEBIT CARD The ICICI Bank Debit Card is a revolutionary form of cash that allowscustomers to access their bank account around the clock, around the world. The ICICI Bank Debit Card can be used for shopping at more than3.5 Lakh merchants in India and 24 million merchants worldwide.

 TRAVEL CARD ICICI Bank Travel Card. the Hassel free way to travel the world. Traveling with US Dollar, Euro, Pound Sterling or Swiss Francs; Looking for security and convenience; take ICICI Bank 35 | P a g e

Travel Card. Issued in duplicate. Offers the Pin based security. Has the convenience of usage of Credit or Debit card.

4.7 INVESTMENT PRODUCTS Along with Deposit products and Loan offerings, ICICI Bank assists you to manage yits finances by providing various i n v e s t m e n t o p t i o n s r a n g i n g f r o m I C I C I B a n k T a x Saving Bonds to Equity Investments through Initial Public Offers and Investment in Pure Gold. ICICI Bank facilitates following investment products: •Government of India Bonds •Investment in Mutual Funds •Initial Public Offers by Corporate •Investment in "Pure Gold" •Foreign Exchange Services •Senior Citizens Savings Scheme

TRADE SERVICES: ICICI Bank offers online remittances as well as online processing of letters of credit and bank guarantees.

ASSET MANAGEMENT: Prudential ICICI Asset Management Company offers a wide range of retail mutual fund products tailored to suit varied risk and maturity profiles.

CASH MANAGEMENT: ICICI Bank offers a complete Range Of highly customized solutions for managing both the collections and payments requirements of clients by leveraging technology. Daily customized transactions reports and real time web-enabled downloads, provide on-tap information facilitating effective working capital management.

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CORPORATE BANKING: ICICI Bank offers comprehensive and customized financial solutions for its corporate clients, including rupee and foreign currency debts, working capital credit, structured financing syndication and transaction banking products and services.

INTERNET BANKING: Internet banking is available to all ICICI Bank savings and deposit account holders, credit card, demat and loan customers. Internet banking service offers customers a world of convenience with services such as balance enquiry, transaction history, account statement, bill payments, and fund transfers and accounts related service requests.

ATMS: With more than 2500 ATMs across the country, ICICI Bank has one of the largest ATM networks in India.

PHONE BANKING: Phone banking offers 24*7 services across Liability, asset and investment products to both retail and corporate customers.

NRI-BANKING: A gamut of services to take care of all NRI banking needs including deposits, money transfers and private banking.

MONEY 2 INDIA: A complete range of online and offline money transfer solutions to send money to India.

PROPERTY: For millions of home buyers across the country, ICICI Bank offers not just great deals on home loans but also a wealth of expert advice.ICICI Bank offers home search service which can help a customer identify the property of his choice based on his budget and other requirements.

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DEMAT ACCOUNTS: ICICI Bank’s demat services after unique features like e-constructions, consolidation, digitally signed statements, mobile requests and corporate benefit tracking.

RURAL BANKING: Bank offers technology-based solutions, financial innovations and multiple delivery channels to meet the financial needs of rural areas.

4.8 SWOT ANALYSIS OF ICICI BANK Introduction to SWOT analysis. The overall evaluation of the company’s Strength, Weakness, Opportunities and Threats is called as SWOT Analysis. The external environment analysis of any business will give you the opportunities and threats

facing

the

business.

The

external

environment consists of two parts:

STRENGTH •Right strategy for the right products. • Superior customer service v/s competitors. •Great Brand Image •Products have required accreditations. •High degree of customer satisfaction. •Good place to work

WEAKNESS •Lower response time with efficient and effective service •Some gaps in range for certain sectors. •Customer service staff needs training. •Processes and systems, etc. •Management covers insufficient.

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OPPORTUNITIES •Profit margins will be good. •Could extend to overseas broadly. •New specialist applications. •Could seek better customer deals • Fast – track career development opportunities on an industry – wide basis .

THREATS •Legislation could impact. •Great risk involved •Very high competition prevailing in the industry. •Vulnerable to reactive attack by major competitors •Lack of infrastructure in rural areas could constrain investment •High volume/low cost market is intensely competitive.

4.9 COMPITITORS INFORMATION NAME

NET INTREST NET PROFIT

TOTAL

INCOME

ASSETS

(in cr)

(in cr)

(in cr)

HDFC BANK

27,286.35

5,167.07

3,37,909.49

ICICI BANK

33542.65

6,465.26

4,73,647.09

KOTAK

6,180.24

1,085.05

65,666.46

AXIS BANK

21,994.65

4,242.21

2,85,627.79

YES BANK

6,307.35

976.99

73,662.12

UNION 1,696.77

280.25

18,350.65

MAHINDRA

CITY BANK

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HDFC Bank Limited is an Indian financial services company based in Mumbai, Maharashtra that was incorporated in August 1994. HDFC Bank is the fifth or sixth largest bank in India by assets and the second largest bank by market capitalization as of February 24, 2018. The bank was promoted by the Housing Development Finance Corporation, a premier housing finance company (set up in 1977) of India. HDFC Bank has 1,986 branches and over 5,471 ATMs, in 996 cities in India, and all branches of the bank are linked on an online real-time basis. Axis Bank Limited is an Indian financial services firm headquartered in Mumbai, Maharashtra. It had begun operations in 1994, after the Government of India allowed new private banks to be established. The Bank was promoted jointly by the Administrator of the Specified Undertaking of the Unit Trust of India (UTI-I), Life Insurance Corporation of India (LIC), General Insurance Corporation Ltd., National Insurance Company Ltd., The New India Assurance Company, The Oriental Insurance Corporation and United India Insurance Company UTI-I holds a special position in the Indian capital markets and has promoted many leading financial institutions in the country. As on the year ended 31 March, 20, Axis Bank had an operating revenue of 13,437 crores and a net profit of 4,242 crores. Yes Bank is a private bank in India. It was founded by Ashok Kapur and RanaKapoor, with the duo holding a collective financial stake of 27.16%. YES Bank has received significant national and international recognitions which include Mr. RanaKapoor, Founder, MD & CEO being recognized as the Entrepreneurial Banker of the Decade (2001-2010) by Bombay Management Association, India's No. 1 New Private Sector Bank in the Financial Express-E&Y Best Banks Survey 2010, India's Fastest Growing Bank of the Year at the Bloomberg UTV Financial Leadership Awards 2011. Kotak Mahindra Bank is an Indian financial service firm established in 1985. It was previously known as Kotak Mahindra Finance Limited, a non-banking financial company. In February 2003, Kotak Mahindra Finance Ltd, the group's flagship company was given the license to carry on banking business by the Reserve Bank of India (RBI). Kotak Mahindra Finance Ltd. is the first company in the Indian banking history to convert to a bank. Today it has more than 20,000 employees and Rs. 10,000 crore in revenue.

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4.10 MARKET SHARE OF ICICI BANK

Company name

52wk high

52wk low

Market capital (in crores)

HDFC BANK

639.25

400.45

148,189.76

ICICI BANK

1,086.75

641.00

121,961.81

KOTAK

649.90

432.80

48,078.27

AXIS BANK

1,309.00

784.50

47,050.84

IndusInd BANK

354.15

221.75

16,642.11

YES BANK

389.40

230.55

13,603.44

MAHINDRA

ICICI Bank, India's second-largest bank, is comfortable with a fall in market share as it rebalances its liabilities, and will be well placed to capitalize on opportunities when market conditions improve, its chief executive said. "We are allowing for a correction to happen in our liability mix. If that warrants some recalibration of our market share, we are comfortable," chief executive K.V. Kamath said in an interview for the Reuters India Investment Summit.ICICI, which weathered a storm about its health when investors grew worried about its exposure to the global financial crisis after the collapse of Lehman Brothers in mid-September, has slowed lending as loan defaults rise.ICICI's share of deposits and loans in the Indian banking system has slid to 6.5 per cent as at September 2008 from 8.7 per cent in March 2007, according to three brokerages polled by Reuters.

4.11 THE KEY CHALLENGES ICICI Bank Ltd’s takeover of Bank of Rajasthan Ltd (BOR) will have to clear a new regulatory hurdle before it can be completed, according to a senior official in the industry ministry. Most banking mergers can move ahead once they get a green signal from the Reserve Bank of India (RBI), but the deal between India’s largest private sector lender and the troubled regional bank will need to be cleared by the government as well because of the provisions of a controversial policy that categorizes ICICI Bank as a foreign-owned one; despite its local presence and Indian management. “The merger needs the approval of the FIPB (Foreign Investment Promotion Board) under Press Note 3.Under the Press Note 3 of 2018 series, if the ownership of an existing Indian company is transferred to a non-resident entity, as a consequence of transfer of shares to 41 | P a g e

nonresident entities through amalgamation, merger or acquisition, then it would require FIPB approval. Private sector lenders ICICI Bank and HDFC Bank Ltd were defined as foreign-owned under the new rules since more than half their equity is owned by foreign entities, including foreign institutional investors, who have no board presence or say in company policy. This regulation is applicable in sectors with foreign direct investment (FDI) caps, such as defense production, private sector banking, broadcasting, commodity exchanges, insurance, print media, telecommunications and satellites, according to the press note. Any foreign firm trying to gain control of local companies needs the prior approval of FIPB.A spokesperson for ICICI Bank said the bank would not comment on any issue relating to BOR till the conclusion of its board meeting on 23 May.

At ICICI Bank, the selection process aims at getting applicants who are likely to succeed at various roles in the Bank. The Endeavour is to select people who have a high service orientation, are passionate about their career goals, and who display integrity and ethics in all engagements.

The growth in the balance sheet has come to a complete halt compared to a 40% average annual growth it posted in the period from 2005-08. The size of bank's balance sheet declined by 5.1% in FY2018. In the days of the economic boom, the bank's growth was fuelled by an unprecedented growth in retail loans. In fact, even at the end of FY2018, retail loans constituted 49% of its total loan book – the highest for any bank in India. As the slowdown started making its presence felt in the Indian economy, the retail loan segment became rather risky. Interestingly, what had made the bank is today causing it a great deal of concern. Feeling the heat, ICICI Bank, wisely, made it clear last year that more attention will be given to cleaning its books and taking stock of the situation than to grow. Not surprisingly, there is merit in paying more attention to its rising non-performing assets (NPA). The bank's net NPA jumped from 1.55% of its net advances at the end of March 08 to 2.09% at the end of March 18. At current levels, it has the highest NPAs, in percentage terms, across large banks in the country

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Being proactive ICICI Bank has been trying to tackle the slowdown from all means it has with one of them being cost containment. Its operating expenses declined 13.6% on a year-on-year (y-o-y) basis in FY18. A bulk of the cost reduction was achieved by bringing operational activities in-house, i.e. by reducing the role of direct marketing agents" noted Share khan in its research report. It is also trying to improve the share of current and savings account (CASA) deposit, which attract lower interest rates and help in reducing the cost of deposit. CASA deposits formed 28.7% of its total deposits at the end of March 18 compared to 26.1% a year ago. This was evident during the analyst conference call for the FY18 results. At that point, Kochhar commented, "My intention is that we should at least get to about 33% of CASA ratio before we start pressing the accelerator on lending." For now, the bank is still struggling as its profit dropped by 35.3% y-o-y for the March 09 quarter. Its performance is in stark contrast to its peers in the banking industry. For instance, SBI posted a 31.6% y-o-y growth in its net profit for nine months ending Dec'08. HDFC Bank posted a 41.2% y-o-y growth in its net profit in FY18. For Kochhar, who has taken over the reins of the ICICI Bank from KV Kamath, the road ahead will be fraught with challenges. Some senior executives like Shikha Sharma, who headed ICICI Prudential Life Insurance and Renuka Ramnath, who headed ICICI Venture Capital have decided to move on.

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CHAPTER- 5 DATA ANALYSIS & INTERPRETETION

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