A

Project Study Report

On
A Study on Customer Satisfaction in Indian Retail Banking
With Special Reference to

ICICI BANK
Submitted in partial fulfillment for the
Award of degree of

MASTER OF BUSINESS ADMINISTRATION

Submitted by

Submitted to

Ashish Kumar Goyal

Dr. Alka Jain

MBA Part II (4th sem.)

(Asst. Professor)
(2010-2011)

SUBODH INSTITUTE OF MANAGEMENT & CAREER STUDIES

BR Shah MBA Block, Rambagh Circle, Jaipur- 302004

CERTIFICATE OF FACULTY GUIDE

This is to certify that the Project entitled A Study on Customer

Satisfaction in Indian Retail Banking in Jaipur City (conducted during

the Project Study Undertaken at ICICI Bank, Jaipur) submitted in partial
fulfillment for the award of degree of MASTER OF BUSINESS
ADMINISTRATION to Subodh Institute of Management & Career
Studies (SIMCS), Jaipur is a record of bonafide research work carried
out by Ashish Kumar Goyal under my supervision and guidance.

Date
Place..

Dr. Alka Jain

(Asst. Professor)

Student Declaration
I hereby declare that this Project Study Report entitled A Study on Customer
Satisfaction in Indian Retail Banking With Special Reference of ICICI Bank
Jaipur submitted in partial fulfillment of requirement of Master of Business
Administration (MBA) to the Subodh Institute of Management & Career
Studies (SIMCS), Jaipur is based on primary and secondary data founded by me
in various department, books, magazines and websites.

Place:- Jaipur

Ashish Kumar Goyal

Date:..

PREFACE
MBA is the one of the most reputed professional coures

in

the

field

of

Management.It include theory as well as its practical knowledge. Project Study is

an integral part of MBA programe, as through this students acquire knowledge of
real happenings of the surroundings. So in Fourth semester each student at
Subodh Institute of Management & Career Studies (SIMCS), Jaipur need to
submit a Project Study report.
Someone has greatly said that practical knowledge is far better than classroom
teaching. During this project I have fully realized this and come to know about the level
of satisfaction of retail banking customers and the factors of customer satisfaction in
retail banks.
The Subject of my study was A Study On Customer Satisfaction In Indian Retail
Banking With Special Reference Of ICICI Bank.. Customer Satisfaction is one of the
most significant factors for the profitability of retail banking in India. The Report consists
of all the necessary information that relates to effective recommendations that are made
to the bank for increasing their customer satisfaction level.

ACKNOWLEGDEMENT
Expression of feelings by words makes them less significant when it comes
to make statement of gratitude
With regard to my Project with ICICI Bank, Jaipur, I would like to thank each and every
one who offered help, guidelines and support whenever required.
I express my sincere thanks to my project guide Dr Alka Jain, for guiding me right from
the inception till the successful completion of the project. I sincerely acknowledge her
for extending her valuable guidance, support for literature, critical reviews of project and
the report and above all the moral support she had provided to me with all stages of this
project.
Last, but not the least, my heartfelt love for my parents and my friends, whose constant
support and blessings kept me enthusiastic throughout this project.

Ashish Kumar Goyal

EXECUTIVE SUMMARY
The banking industry like many other financial services industries is facing a rapidly
changing market, new technologies, economic uncertainties, fierce competition and
more demanding customers ; and the changing climate has presented an
unprecedented set of challenges. In the current circumstances a questions arises
whether the customers are satisfied or not and what are the elements of retail banking
which lead to the satisfaction or dissatisfaction of customers. The knowledge of current
levels of satisfaction and , in particular, the primary factors of satisfaction are beneficial
to those in the industry, thereby allowing them to focus and further strengthen the key
areas that lead to highly satisfied customers . this research postulates on the present
levels of satisfaction , and also tries to explore the factors that lead to customer
satisfaction in retail banking in India .data from 25 survey respondents were collected
from one branch of one of the prominent retail bank (ICICI Bank) in the Jaipur. The
findings revealed that customer satisfaction, a transaction specific attribute are
dependent on several factors, which concur with extensive academic literature.
Though private banking evolved in late 80s in Asia, in India its not more than 5 years
old. ICICI started it in Aug 2002 and since then it has been a remarkable success.
Today there are enormous solutions to cater client needs but what suits best to a client
is where private banking fits in. Every client will have different needs, liking and
preferences. So a customized portfolio for every client is the need of the day.
This research will highlight more on the product portfolio of ICICI Private Banking, how
they have changed or innovatively structured to be attractive and competitive.

CHAPTER
CHAPTER-1

CHAPTER-2

CHAPTER-3

CHAPTER-4
CHAPTER-5

CHAPTER-6
CHAPTER-7

TABLE OF CONTENTS
INTRODUCTION OF THE
INDUSTRY
Introduction to Indian Banking
Industry
Introduction to Banking
Banking System in India
Role of Banks
Products & Services offered by
Banks
INTRODUCTION TO
ORGANIZATION
Introduction of ICICI Bank
Key subsidiaries of ICICI Bank
Products & Services Offered By ICICI
Bank
INTRODUCTION TO PROJECT
TOPIC
Introduction of Customer
Satisfaction
Objective of Customer Satisfaction
LITREATURE REVIEW
RESEARCH METHODOLOGY
Title of the Study
Objective of the Study
Type of Research
Data Collection & Sample Design
Scope of the study
Limitation of the project
FACTS & FINDINGS
DATA ANALYSIS &
INTERPRETATION

PAGE NO.
8-40
9-15
16-17
18-26
27-30
31-40
41-79
42-52
53-60
61-79
80-88
81-84
85-88
89-93
94-97
95
95
96
96
97
97
98-99
100-114
7

SWOT ANALYSIS OF ICICI BANK

CONCLUSION
RECOMMENDATIONS &
CHAPTER-10 SUGGESTIONS
CHAPTER-11 ANNEXURE
CHAPTER-12 BIBLIOGRAPHY
CHAPTER-8
CHAPTER-9

115-119
120-121
122-123
124-126
127-128

CHARTS

Chart-1 Customer have Account with ICICI Bank

Chart-2 Attributes compelled by the customers to open saving account in any
bank
Chart-3 Customers having Bank Account With ICICI Bank From how many years
Chart-4 Reason for preference of ICICI Bank
Chart-5 Medium for customer awareness about the services provided by ICICI
Bank
Chart-6 Thinking of the people about the Banks
Chart-7 Suitability of processing of loan for the customers
Chart-8 Opinion of the customers about the processing charges of loan
Chart-9 Type of loan Preferred by the customers of ICICI Bank
Chart-10 Customers Opinion about the interest rate charged on loan by the
ICICI bank

Chart-11 Internet banking availed by the customers of ICICI Bank

Chart-12 Reasons for not using Internet banking Service by the customers
Chart-13 Customer opinion towards the financial services provided by the ICICI
Bank
Chart-14 Level of Customer satisfaction towards the services provided by ICICI
Bank

CHAPTER 1

INTRODUCTION OF INDIAN BANKING INDUSTRY

Banking in India originated in the first decade of 18th century with The General Bank of India
coming into existence in 1786. This was followed by Bank of Hindustan. Both these banks are
now defunct. The oldest bank in existence in India is the State Bank of India being established
as "The Bank of Bengal" in Calcutta in June 1806. A couple of decades later, foreign banks
started their Calcutta operations in the 1850s. At that point of time, Calcutta was the most active

10

trading port, mainly due to the trade of the British Empire, and due to which banking activity took
roots there and prospered. The first fully Indian owned bank was the Allahabad Bank, which
was established in 1865.
By the 1900s, the market expanded with the establishment of banks such as Punjab National
Bank, in 1895 in Lahore and Bank of India, in 1906, in Mumbai - both of which were founded
under private ownership. The Reserve Bank of India formally took on the responsibility of
regulating the Indian banking sector from 1935. After India's independence in 1947, the Reserve
Bank was nationalized and given broader powers.
At the end of late-18th century, there were hardly any bank in India in the modern sense of the
term. At the time of the American Civil War, a void was created as the supply of cotton to
Lancashire stopped from the Americas. Some banks were opened at that time which functioned
as entities to finance industry, including speculative trades in cotton. With large exposure to
speculative ventures, most of the banks opened in India during that period could not survive and
failed. The depositors lost money and lost interest in keeping deposits with banks.
Subsequently, banking in India remained the exclusive domain of Europeans for next several
decades until the beginning of the 20th century.
The Bank of Bengal, which later became the State Bank of India.

11

RESERVE
RESERVEBANK
BANKOF
OFINDIA
INDIA
Central
Bank
and
supreme
Central Bank and suprememonetary
monetary
authority
authority

Coopera
Coopera
tiv
tivee
Urban
Urban
Cooperatives
Cooperatives

Scheduled
Scheduled
Banks
Banks

State
State
Cooperatives
Cooperatives

Public
Public
Sector
Sector

Other
Other Nationalized
Nationalized
Banks
Banks

SBI
SBI &
&
Associates
Associates

Non
Non Scheduled
Scheduled
Banks
Banks

Commer
Commer
cial
cial
Private
Private
Sector
Sector

Foreign
Foreign
Banks
Banks

Regional
Regional Rural
Rural
Banks
Banks

History Of Banking In India

Without a sound and effective banking system in India it cannot have a healthy economy. The
banking system of India should not only be hassle free but it should be able to meet new
challenges posed by the technology and any other external and internal factors.
For the past three decades India's banking system has several outstanding achievements to its
credit. The most striking is its extensive reach. It is no longer confined to only metropolitans or
cosmopolitans in India. In fact, Indian banking system has reached even to the remote corners
of the country. This is one of the main reason of India's growth process.
The government's regular policy for Indian bank since 1969 has paid rich dividends with the
nationalization of 14 major private banks of India.
Not long ago, an account holder had to wait for hours at the bank counters for getting a draft or
for withdrawing his own money. Today, he has a choice. Gone are days when the most efficient
bank transferred money from one branch to other in two days. Now it is simple as instant
messaging or dial a pizza. Money has become the order of the day.

12

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.
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:

PHASE I

PHASE II - Nationalization of Indian Banks and up to 1991

PHASE III - Indian Financial & Banking Sector Reforms after 1991.

- Early phase from 1786 to 1969 of Indian Banks

PHASE I:
The General Bank of India was set up in the year 1786. Next came Bank of Hindustan and
Bengal Bank. The East India Company established Bank of Bengal (1809), Bank of Bombay
(1840) and Bank of Madras (1843) as independent units and called it Presidency Banks. These
three banks were amalgamated in 1920 and Imperial Bank of India was established which
started as private shareholders banks, mostly Europeans shareholders. During the first phase
the growth was very slow and banks also experienced periodic failures between 1913 and 1948.
There were approximately 1100 banks, mostly small. To streamline the functioning and activities
of commercial banks, the Government of India came up with The Banking Companies Act, 1949
which was later changed to Banking Regulation Act 1949 as per amending Act of 1965 (Act No.
23 of 1965). Reserve Bank of India was vested with extensive powers for the supervision of
banking in India as the Central Banking Authority. During those days public has lesser
confidence in the banks. As an aftermath deposit mobilization was slow. Abreast of it the
savings bank facility provided by the Postal department was comparatively safer. Moreover,
funds were largely given to the traders.
PHASE II:

13

Government took major steps in this Indian Banking Sector Reform after independence. In
1955, it nationalized Imperial Bank of India with extensive banking facilities on a large scale
especially in rural and semi-urban areas. Second phase of nationalization Indian Banking Sector
Reform was carried out in 1980 with seven more banks. This step brought 80% of the banking
segment in India under Government ownership.
The following are the steps taken by the Government of India to Regulate Banking Institutions in
the Country:

1949: Enactment of Banking Regulation Act.

1955: Nationalization of State Bank of India.

1959: Nationalization of SBI subsidiaries.

1961: Insurance cover extended to deposits.

1969: Nationalization of 14 major banks.

1971: Creation of credit guarantee corporation.

1975: Creation of regional rural banks.

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

After the nationalization of banks, the branches of the public sector bank India raised to
approximately 800% in deposits and advances took a huge jump by 11,000%.Banking in the
sunshine of Government ownership gave the public implicit faith and immense confidence about
the sustainability of these institutions.
PHASE III
This phase has introduced many more products and facilities in the banking sector in its reforms
measure. In 1991, under the chairmanship of M Narasimham, a committee was set up by his
name which worked for the liberalization of banking practices.
The country is flooded with foreign banks and their ATM stations. Efforts are being put to give a
satisfactory service to customers. Phone banking and net banking is introduced. The entire
system became more convenient and swift. The financial system of India has shown a great
deal of resilience. It is sheltered from any crisis triggered by any external macroeconomics
shock as other East Asian Countries suffered. This is all due to a flexible exchange rate regime,
the foreign reserves are high, the capital account is not yet fully convertible, and banks and their
customers have limited foreign exchange exposure.

14

HISTORY OF BANKING
The period during the First World War (1914-1918) through the end of the Second World War
(1939-1945), and two years thereafter until the independence of India were challenging for the
Indian banking. The years of the First World War were turbulent, and it took toll of many banks
which simply collapsed despite the Indian economy gaining indirect boost due to war-related
economic activities. At least 94 banks in India failed during the years 1913 to 1918 as indicated
in the following table:

Years

POST-

1913
1914
1915
1916
1917
1918

Number of banks Authorized capital Paid-up Capital

that failed
12
42
11
13
9
7

(Rs. Lakes)
274
710
56
231
76
209

(Rs. Lakes)
35
109
5
4
25
1

INDEPENDENCE
The partition of India in 1947 had adversely impacted the economies of Punjab and West
Bengal, and banking activities had remained paralyzed for months. India's independence
marked the end of a regime of the Laissez-faire for the Indian banking. The Government of India
initiated measures to play an active role in the economic life of the nation, and the Industrial
Policy Resolution adopted by the government in 1948 envisaged a mixed economy. This
resulted into greater involvement of the state in different segments of the economy including
banking and finance. The major steps to regulate banking included:

1. In 1948, the Reserve Bank of India, India's central banking authority, was nationalized, and it
became an institution owned by the Government of India.

2. In 1949, the Banking Regulation Act was enacted which empowered the Reserve Bank of
India (RBI) "to regulate, control, and inspect the banks in India."

3. The Banking Regulation Act also provided that no new bank or branch of an existing bank
may be opened without a license from the RBI, and no two banks could have common
directors.

15

However, despite these provisions, control and regulations, banks in India except the State
Bank of India, continued to be owned and operated by private persons. This changed with the
nationalization of major banks in India on 19th July, 1969

NATIONALISATION
By the 1960s, the Indian banking industry has become an important tool to facilitate the
development of the Indian economy. At the same time, it has emerged as a large employer, and
a debate has ensued about the possibility to nationalize the banking industry. Indira Gandhi,
the-then Prime Minister of India expressed the intention of the GOI in the annual conference of
the All India Congress Meeting in a paper entitled "Stray thoughts on Bank Nationalization." The
paper was received with positive enthusiasm. Thereafter, her move was swift and sudden, and
the GOI issued an ordinance and nationalized the 14 largest commercial banks with effect from
the midnight of July 19, 1969. Jayaprakash Narayan, a national leader of India, described the
step as a "masterstroke of political sagacity." Within two weeks of the issue of the ordinance, the
Parliament passed the Banking Companies (Actuation and Transfer of Undertaking) Bill, and it
received the presidential approval on 9th August, 1969.
A second dose of nationalization of 6 more commercial banks followed in 1980. The stated
reason for the nationalization was to give the government more control of credit delivery. With
the second dose of nationalization, the GOI controlled around 91% of the banking business of
India.
After this, until the 1990s, the nationalized banks grew at a pace of around 4%, closer to the
average growth rate of the Indian economy.
1955 : Nationalisation of State Bank of India.
1959 : Nationalisation of SBI subsidiaries.
1969 : Nationalisation of 14 major banks.
1980 : Nationalisation of seven banks with deposits over 200 crores.

LIBERALISATION
In the early 1990s the then NarasimhaRao government embarked on a policy of liberalization
and gave licenses to a small number of private banks, which came to be known as New

16

Generation tech-savvy banks, which included banks such as UTI Bank(now re-named as Axis
Bank) (the first of such new generation banks to be set up), ICICI Bank and HDFC Bank. This
move, along with the rapid growth in the economy of India, kick started the banking sector in
India, which has seen rapid growth with strong contribution from all the three sectors of banks,
namely, government banks, private banks and foreign banks.
The next stage for the Indian banking has been setup with the proposed relaxation in the norms
for Foreign Direct Investment, where all Foreign Investors in banks may be given voting rights
which could exceed the present cap of 10%, at present it has gone up to 49% with some
restrictions.
The new policy shook the Banking sector in India completely. Bankers, till this time, were used
to the 4-6-4 method (Borrow at 4%; Lend at 6%; Go home at 4) of functioning. The new wave
ushered in a modern outlook and tech-savvy methods of working for traditional banks. All this
led to the retail boom in India. People not just demanded more from their banks but also
received more.

17

INTRODUCTION OF BANKING
MEANING AND DEFINITION:
Bank is an institution that deals in money and its substitutes and provides crucial
financial services. The principal type of baking in the modern industrial world is commercial
banking & central banking.
Banking Means "Accepting Deposits for the purpose of lending or Investment of deposits
of money from the public, repayable on demand or otherwise and withdraw by cheque, draft or
otherwise."
-Banking Companies (Regulation) Act,1949
The concise oxford dictionary has defined a bank as "Establishment for custody of
money which it pays out on customers order." In fact this is the function which the bank
performed when banking originated.
"Banking in the most general sense, is meant the business of receiving, conserving &
utilizing the funds of community or of any special section of it."
-By H. Wills & J. Bogan
"A banker of bank is a person, a firm, or a company having a place of business where
credits are opened by deposits or collection of money or currency or where money is advanced
and waned.
-By Findlay Sheras
Thus,
A Bank :

Accept deposits of money from public,

Pays interest on money deposited with it.

Lends or invests money

Repays the amount on demand,

Allow the money deposited to be withdrawn by cheque or draft.

18

Banks have played a pivotal role in the process of development of the district over the years,
especially after the formation of the district in 1993. Apart from dispensing credit, the Banks
have also brought about social changes. The contribution of the banking sector in the field of
overall development of the district is elaborated in the following paragraphs.
At the beginning of the 20th century, Indian economy was passing through a relative period of
stability. Around five decades have elapsed since the India's First war of Independence, and the
social, industrial and other infrastructure have developed. At that time there were very small
banks operated by Indians, and most of them were owned and operated by particular
communities. The banking in India was controlled and dominated by the presidency banks,
namely, the Bank of Bombay, the Bank of Bengal, and the Bank of Madras - which later on
merged to form the Imperial Bank of India, and Imperial Bank of India, upon India's
independence, was renamed the State Bank of India. There were also some exchange banks,
as also a number of Indian joint stock banks. All these banks operated in different segments of
the economy.
The presidency banks were like the central banks and discharged most of the functions of
central banks. They were established under charters from the British East India Company. The
exchange banks, mostly owned by the Europeans, concentrated on financing of foreign trade.
Indian joint stock banks were generally undercapitalized and lacked the experience and maturity
to compete with the presidency banks, and the exchange banks. There was potential for many
new banks as the economy was growing. Lord Carson had observed then in the context of
Indian banking: "In respect of banking it seems we are behind the times. We are like some old
fashioned sailing ship, divided by solid wooden bulkheads into separate and cumbersome
compartments.
Under these circumstances, many Indians came forward to set up banks, and many banks were
set up at that time, a number of which have survived to the present such as Bank of India and
Corporation Bank, Indian Bank, Bank of Baroda, and Canara Bank.
Indian banking sector can be divided mainly into four broad categories namely public sector
Banks, old private sector banks, new private sector banks, and foreign banks. The other
categories of banks include co-operative banks and regional rural banks. Since these banks
dont form a substantial chunk of the banking system, we will focus on the first four categories.

19

BANKING SYSTEM IN INDIA

BANKS IN INDIA

CENTRAL BANK

NATIONALISED
BANK
BANKS

CENTRAL BANK:

PRIVATE BANKS

FOREIGN BANKS

RESERVE BANK OF INDIA

NATIONALISED BANK IN INDIA

The Banking System in India is dominated by nationalized banks. The Nationalization of Banks
in India took place in 1969 by Mrs. Indira Gandhi the then Prime Minister. The major objective
Behind Nationalization Banks was to spread banking Infrastructure in Rural areas and make
available cheap finance to Indian farmers. Fourteen banks were nationalized in 1969. These
Banks were
State Bank of India
Allahabad Bank
Andhra Bank
Bank of Baroda
Bank of India
Bank of Maharashtra
Canara Bank

20

 Central Bank of India

Corporation Bank
Dena Bank
Indian Bank
Indian Overseas Bank
Oriental Bank of Commerce
Punjab & Sind Bank
Punjab National Bank
Syndicate Bank
Union Bank of India

PRIVATE BANK IN INDIA

All the banks in India were earlier private banks. They were founded in the pre-independence
era to cater to the banking needs of the people. But after nationalization of banks in 1969 public
sector banks came to occupy dominant role in the banking structure. Private sector banking in
India received a fillip in 1994 when Reserve Bank of India encouraged setting up of private
banks as part of its policy of liberalization of the Indian Banking Industry. Housing Development
Finance Corporation Limited (HDFC) was amongst the first to receive an 'in principle' approval
from the Reserve Bank of India (RBI) to set up a bank in the private sector.
Axis Bank
Bharat Overseas Bank
Catholic Syrian Bank
Centurion Bank of Punjab
City Union Bank
Development Credit Bank
Dhanalakshmi Bank
Federal Bank
Ganesh Bank of Kurundwad
HDFC Bank
ICICI Bank
IDBI Bank

21

 IndusInd Bank
ING Vysya Bank
Jammu & Kashmir Bank
Karnataka Bank Limited
Karur Vysya Bank
Kotak Mahindra Bank
Lakshmi Vilas Bank
Lord Krishna Bank
Nainital Bank
Ratnakar Bank
SBI Commercial and International Bank

FOREIGN BANKS IN INDIA

Foreign Banks are likely to succeed in their niche markets and be the innovators in terms of
technology introduction in the domestic scenario. The outlook for the private sector banks
indeed looks to be more promising vis--vis other banks. While their focused operations lower
but more productive employee force etc will stand them good, possible acquisitions of PSU
banks will definitely give them the much needed scale of operations and access to lower cost of
funds.

Standard charted Bank

Deutsche Bank

Bank of America

Citi Bank

ABN Amro Bank

HSBC Bank

22

FUNCTIONS OF BANKS
PRIMARY FUNCTIONS

Acceptance of Deposits

Making loans & advances

Loans

Overdraft

Cash Credit

Discounting of bills of exchange

SECONDARY FUNCTIONS

Agency functions

Collection of cheques & Bills etc.

Collection of interest and dividends.

Making payment on behalf of customers

Purchase & sale of securities

Facility of transfer of funds

To act as trustee & executor.

UTILITY FUNCTIONS :

Safe custody of customers valuable articles & securities.

23

Underwriting facility

Issuing of travelers cheque letter of credit

Facility of foreign exchanges

Providing trade information

Provide information regarding credit worthiness of their customer.

CLASSIFICATION OF BANKS
CLASSIFICATION ON BASIS OF OWNERSHIP
On the basis of ownership banks are of the following types :

1.

PUBLIC SECTOR BANK

Public sector banks are those banks which are owned by the Government. The Govt.
runs these Banks. In India 14 banks were nationalized in 1969 & in 1980 another 6
banks were also nationalized. Therefor in 1980 the number of nationalized bank 20. But
at present there are 9 banks are nationalized. All these banks are belonging to public
sector category. Welfare is their principle objective.

2.

PRIVATE SECTOR BANKS

These banks are owned and run by the private sector. Various banks in the country such
as ICICI Bank, HDFC Bank etc. An individual has control over their banks in preparation
to the share of the banks held by him.

3.

CO-OPERATIVE BANKS
Co-operative banks are those financial institutions. They provide short term & medium
term loans to their members. Co-operative banks are in every state in India. Its branches
at district level are known as the central co-operative bank. The central co-operative
bank in turn has its branches both in the urban & rural areas. Every state co-operative

24

bank is an apex bank which provides credit facilities to the central co-operative bank. It
mobilized financial resources from richer section of urban population by accepting
deposit and creating the credit like commercial bank and borrowing from the money mkt.
It also gets funds from RBI.

ii

ACCORDING TO RESERVE BANK OF INDIA ACT 1935

Banks are classified into following two categories son the basis of reserve bank Act
1934.

1.

SCHEDULED BANK
These banks have paid up capital of at least Rs. 5 lacks. These are like a joint stock
company. It is a co-operative organization. These banks find their mention in the second
schedule of the reserve bank.

2.

NON SCHEDULED BANK

These banks are not mentioned in the second schedule of reserve bank paid up capital
of these banks is less then Rs.5 lacs. The no. such bank is gradually tolling in India.

iii

CLASSIFICATION ACCORDING TO FUNCTION

On the basis of functions banks are classified as under :-

1.

COMMERCIAL BANKS
The commercial banks generally extend short-term loans to businessmen & traders.
Since their deposits are for a short-period only. They cannot lend money for a long
period. These banks reform various types or agency job for their customers. These
banks are not in a position to grant long-term loans to industries because their deposits
are only for a short period. The majority of joint stock banks in India are commercial
banks which finance trade & commerce only.

2.

SAVING BANKS

25

The principle function of these banks is to collect small saving across the country and
put them into productive use. These banks have shown marked development in
Germany & Japan. These banks are established in HAMBURG City of Germany in 1765.
In India a department of post offices functions as a saving banks.
3.

FOREIGN EXCHANGE BANKS

These are special types of banks which specialize in financing foreign trade. Their main
function is to make international payments through purchase & sale of exchange bills. As
it well known, the exporters of a country prefer to receive the payments for exports in
their own currency. Thus these banks convert home currency into foreign currency and
vice versa. It is on this account that these banks have to keep with themselves stock of
the currency of various countries. Along with that, they have to open branches in foreign
countries to carry on their business.

4.

INDUSTIRAL BANKS
The industrial banks extends long term loans to industries. In fact, they also help
industrials firms to sell their debentures and shares. Sometimes, they even underwrite
the debentures & shares of big industrial concerns.

5.

INDIGENIOUS BANKS
These banks found their origin in India. These banks made a significant contribution to
the development of agricultural and industries before independence. Mahajans, rural
moneylenders have been the forerunner of these banks in India.

6.

CENTRAL BANK
The central bank occupies a pivotal position in the monetary and banking structure of the
country. The central bank is the undisputed leader of the money market. As such it
supervises controls and regulates the activities of commercial banks affiliated with it. The
central bank is also the higher monetary institution in the country charged with the duty &
responsibility of carrying out the monetary policy formulated by the government. India's
central bank known as the reserve bank of India was set up in 1935.

26

7.

AGRICULTURAL BANK
The commercial and the industrial banks are not in a position to meet the credit
requirements of agriculture. Hence, there arises the need for setting up special type of
banks of finance agriculture. The credit requirements of the farmers are two types. Firstly
the farmers require short term loans to buy seeds, fertilizers, ploughs and other inputs.
Secondly, the farmers require long-term loans to purchase land, to effect permanent
improvements on the land to buy equipment and to provide for irrigation works. There
are two types of agriculture banks.
1. Agriculture co-operative banks, and
2. Land mortgage banks. The farmer provide short-term credit, while the letter
extend long-term loans to the farmer

MAJOR PLAYERS OF BANKING SECTOR

PRIVATE BANK IN INDIA

PUBLIC BANKS IN INDIA

27

FOREIGN BANKS IN INDIA

28

Role of Banks:
Banks play a positive role in economic development of a country as repositories
of communitys savings and as purveyors of credit. Indian Banking has aided the economic
development during the last fifty years in an effective way. The banking sector has shown a
remarkable responsiveness to the needs of planned economy. It has brought about a
considerable progress in its efforts at deposit mobilization and has taken a number of measures
in the recent past for accelerating the rate of growth of deposits. As recourse to this, the
commercial banks opened branches in urban, semi-urban and rural areas and have introduced
a number of attractive schemes to foster economic development.
The activities of commercial banking have growth in multi-directional ways as
well as multi-dimensional manner. Banks have been playing a catalytic role in area
development, backward area development, extended assistance to rural development all along
helping agriculture, industry, international trade in a significant manner. In a way, commercial
banks have emerged as key financial agencies for rapid economic development.
By pooling the savings together, banks can make available funds to specialized
institutions which finance different sectors of the economy, needing capital for various purposes,
risks and durations. By contributing to government securities, bonds and debentures of termlending institutions in the fields of agriculture, industries and now housing, banks are also

29

providing these institutions with an access to the common pool of savings mobilized by them, to
that extent relieving them of the responsibility of directly approaching the saver. This
intermediation role of banks is particularly important in the early stages of economic
development and financial specification. A country like India, with different regions at different
stages of development, presents an interesting spectrum of the evolving role of banks, in the
matter of inter-mediation and beyond.
Mobilization of resources forms an integral part of the development process in
India. In this process of mobilization, banks are at a great advantage, chiefly because of their
network of branches in the country. And banks have to place considerable reliance on the
mobilization of deposits from the public to finance development programmes. Further, deposit
mobalization by banks in India acquired greater significance in their new role in economic
development.
Commercial banks provide short-term and medium-term financial assistance.
The short-term credit facilities are granted for working capital requirements. The medium-term
loans are for the acquisition of land, construction of factory premises and purchase of machinery
and equipment. These loans are generally granted for periods ranging from five to seven years.
They also establish letters of credit on behalf of their clients favoring suppliers of raw
materials/machinery (both Indian and foreign) which extend the bankers assurance for payment
and thus help their delivery. Certain transaction, particularly those in contracts of sale of
Government Departments, may require guarantees being issued in lieu of security earnest
money deposits for release of advance money, supply of raw materials for processing, full
payment of bills on the assurance of the performance etc. Commercial banks issue such
guarantees also.

The Role of Reserve Bank of India (RBI) Bankers Bank:

The Reserve Bank of India (RBI) is the central bank of India, and
was established on April 1, 1935 in accordance with the provisions of the Reserve Bank of India
Act, 1934. Since its inception, it has been headquartered in Mumbai. Though originally privately
owned, RBI has been fully owned by the Government of India since nationalization in 1949.
RBI is governed by a central board (headed by a Governor) appointed by the
Central Government. The current governor of RBI is Dr.Y.Venugopal Reddy (who succeeded Dr.
Vimal Jalan on September 6, 2003). RBI has 22 regional offices across India. The Reserve

30

Bank of India was set up on the recommendations of the Hilton Young Commission. The
commission submitted its report in the year 1926, though the bank was not set up for nine
years.

Main Objective:
Monetary Authority

Formulates, implements and monitors the monetary policy.

Objective: maintaining price stability and ensuring adequate flow of credit to productive
sectors.

Regulator and supervisor of the financial system

Prescribes broad parameters of banking operations within which the countrys banking
and financial system functions.

Objective: maintain public confidence in the system, protect depositors interest and
provide cost-effective banking services to the public. The Banking Ombudsman Scheme
has been formulated by the Reserve Bank of India (RBI) for effective redressal of
complaints by bank customers

Manager of Exchange Control

Manages the Foreign Exchange Management Act, 1999.

Objective: to facilitate external trade and payment and promote orderly development and
maintenance of foreign exchange market in India.

Issuer of currency

Issues and exchanges or destroys currency and coins not fit for circulation.

Objective: to give the public adequate quantity of supplies of currency notes and coins
and in good quality.

Developmental role

Performs a wide range of promotional functions to support national objectives.

31

Related Functions

Banker to the Government: performs merchant banking function for the central and the
state governments; also acts as their banker.

Banker to banks: maintains banking accounts of all scheduled banks.

Owner and operator of the depository (SGL) and exchange (NDS) for government
bonds.

There is now an international consensus about the need to focus the tasks of a central bank
upon central banking. RBI is far out of touch with such a principle, owing to the sprawling
mandate described above.

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

Promotional Functions:
With economic growth assuming a new urgency since Independence, the range
of the Reserve Banks functions have steadily widened. The Bank now performs a variety of
developmental and promotional functions, which, at one time, were regarded as outside the

32

normal scope of central banking. The Reserve Bank was asked to promote banking habit,
extend banking facilities to rural and semi-urban areas, and establish and promote new
specialized financing agencies. Accordingly, the Reserve bank has helped in the setting up of
the IFCI and the SFC: it set up the Deposit Insurance Corporation of India in 1963 and the
Industrial Reconstruction Corporation of India in 1972. These institutions were set up directly or
indirectly by the Reserve Bank to promote saving habit and to mobilize savings, and to provide
industrial finance as well as agricultural finance. As far back as 1935, the RBI set up the
Agricultural Credit Department to provide agricultural credit. But only since 1951 the Banks role
in this field has become extremely important. The Bank has developed the co-operative credit
movement to encourage saving, to eliminate money-lenders from the villages and to route its
short term credit to agriculture. The RBI has set up the Agricultural Refinance and Development
Corporation to provide long-term finance to farmers.

PRODUCTS AND SERVICES OFFERED BY BANKS

Broad Classification of Products in a bank:
The different products in a bank can be broadly classified into:

Retail Banking.

Trade Finance.

Treasury Operations.

Retail Banking and Trade finance operations are conducted at the branch level while the
wholesale banking operations, which cover treasury operations, are at the hand office or a
designated branch.

Retail Banking:

Deposits

Loans, Cash Credit and Overdraft

33

Negotiating for Loans and advances

Remittances

Book-Keeping (maintaining all accounting records)

Receiving all kinds of bonds valuable for safe keeping

Trade Finance:

Issuing and confirming of letter of credit.

Drawing, accepting, discounting, buying, selling, collecting of bills of exchange,

promissory notes, drafts, bill of lading and other securities.

Treasury Operations:

Buying and selling of bullion. Foreign exchange

Acquiring, holding, underwriting and dealing in shares, debentures, etc.

Purchasing and selling of bonds and securities on behalf of constituents.

The banks can also act as an agent of the Government or local authority. They insure,

guarantee, underwrite, participate in managing and carrying out issue of shares, debentures,
etc.
Apart from the above-mentioned functions of the bank, the bank provides a whole lot of
other services like investment counseling for individuals, short-term funds management and
portfolio management for individuals and companies. It undertakes the inward and outward
remittances with reference to foreign exchange and collection of varied types for the
Government.

Common Banking Products Available:

Some of common available banking products are explained below:

34

1) Credit Card: Credit Card is post paid or pay later card that draws from a credit

line-

money made available by the card issuer (bank) and gives one a grace period to pay. If the
amount is not paid full by the end of the period, one is charged interest.
A credit card is nothing but a very small card containing a means of identification, such
as a signature and a small photo. It authorizes the holder to change goods or services to his
account, on which he is billed. The bank receives the bills from the merchants and pays on
behalf of the card holder.
These bills are assembled in the bank and the amount is paid to the bank by the card holder
totally or by installments. The bank charges the customer a small amount for these services.
The card holder need not have to carry money/cash with him when he travels or goes for
purchasing.
Credit cards have found wide spread acceptance in the metros and big cities. Credit
cards are joining popularity for online payments. The major players in the Credit Card market
are the foreign banks and some big public sector banks like SBI and Bank of Baroda. India at
present has about 3 million credit cards in circulation.

2) Debit Cards: Debit Card is a prepaid or pay now card with some stored value. Debit
Cards quickly debit or subtract money from ones savings account,or if one were taking out
cash. Every time a person uses the card, the merchant who in turn can get the money
transferred to his account from the bank of the buyers, by debiting an exact amount of purchase
from the card. To get a debit card along with a Personal Identification Number (PIN).
When he makes a purchase, he enters this number on the shops PIN pad. When the
card is swiped through the electronic terminal, it dials the acquiring bank system either Master
Card or Visa that validates the PIN and finds out from the issuing bank whether to accept or
decline the transaction. The customer never overspread because the amount spent is debited
immediately from the customers account. So, for the debit card to work, one must already have
the money in the account to cover the transaction. There is no grace period for a debit card
purchase. Some debit cards have monthly or per transaction fees.
Debit Card holder need not carry a bulky checkbook or large sums of cash when he/she
goes at for shopping. This is a fast and easy way of payment one can get debit card facility as

35

debit cards use ones own money at the time of sale, so they are often easier than credit cards
to obtain.
The major limitation of Debit Card is that currently only some 3000-4000 shops country
wide accepts it. Also, a person cant operate it in case the telephone lines are down.

3) Automatic Teller Machine: The introduction of ATMs has given the customers the facility
of round the clock banking. The ATMs are used by banks for making the customers dealing
easier. ATM card is a device that allows customer who has an ATM card to perform routine
banking transaction at any time without interacting with human teller. It provides exchange
services. This service helps the customer to withdraw money even when the banks ate closed.
This can be done by inserting the card in the ATM and entering the Personal Identification
Number and secret Password.
ATMs are currently becoming popular in India that enables the customer to withdraw
their money 24 hours a day and 365 days. It provides the customers with the ability to withdraw
or deposit funds, check account balances, transfer funds and check statement information. The
advantages of ATMs are many. It increases existing business and generates new business. It
allows the customers.

To transfer money to and from accounts.

To view account information.

To order cash.

To receive cash.

Advantages of ATMs:
To the Customers

ATMs provide 24 hrs. 7 days and 365 days a year service.

Service is quick and efficient

Privacy in transaction

36

Wider flexibility in place and time of withdrawals.

The transaction is completely secure you need to key in Personal Identification

Number (Unique number for every customer).

To Banks

Alternative to extend banking hours.

Crowding at bank counters considerably reduced.

Alternative to new branches and to reduce operating expenses.

Relieves bank employees to focus an more analytical and innovative work.

Increased market penetration.

ATMs can be installed anywhere like Airports, Railway Stations, Petrol Pumps, Big

Business arcades, markets, etc. Hence, it gives easy access to the customers, for obtaining
cash.
The ATM services provided first by the foreign banks like Citibank, Grind lays bank and
now by many private and public sector banks in India like ICICI Bank, HDFC Bank, SBI, UTI
Bank etc. The ICICI has launched ATM Services to its customers in all the Metropolitan Cities in
India. By the end of 1990 Indian Private Banks and public sector banks have come up with their
own ATM Network in the form of SWADHAN. Over the past year upto 44 banks in Mumbai,
Vashi and Thane, have became a part of SWADHAN a system of shared payments networks,
introduced by the Indian Bank Association (IBA).

4) E-Cheaques: The e-cheaques consists five primary facts. They are the consumers, the
merchant, consumers bank the merchants bank and the e-mint and the clearing process. This
cheaquring system uses the network services to issue and process payment that emulates real
world chaquing. The payer issues a digital cheaques to the payee ant the entire transactions are
done through internet. Electronic version of cheaques are issued, received and processed. A
typical electronic cheque transaction takes place in the following manner:

37

The customer accesses the merchant server and the merchant server presents its goods
to the customer.

The consumer selects the goods and purchases them by sending an e-cheque to the
merchant.

The merchant validates the e-cheque with its bank for payment authorization.

The merchant electronically forwards the e-cheque to its bank.

The merchants bank forwards the e-cheque to the clearing house for cashing.

The clearing house jointly works with the consumers bank clears the cheque and
transfers the money to the merchants banks.

The merchants bank updates the merchants account.

The consumers bank updates the consumers account with the withdrawal information.
The e-chequing is a great boon to big corporate as well as small retailers. Most major

banks accept e-cheques. Thus this system offers secure means of collecting payments,
transferring value and managing cash flows.
5)

Electronic Funds Transfer (EFT): Many modern banks have computerized their

cheque handling process with computer networks and other electronic equipments. These
banks are dispensing with the use of paper cheques. The system called electronic fund transfer
(EFT) automatically transfers money from one account to another. This system facilitates
speedier transfer of funds electronically from any branch to any other branch. In this system the
sender and the receiver of funds may be located in different cities and may even bank with
different banks. Funds transfer within the same city is also permitted. The scheme has been in
operation since February 7, 1996, in India.
The other important type of facility in the EFT system is automated clearing houses.
These are the computer centers that handle the bills meant for deposits and the bills meant for
payment. In big companies pay is not disbursed by issued cheques or issuing cash. The
payment office directs the computer to credit an employees account with the persons pay.

38

Telebanking: Telebanking refers to banking on phone services..a customer can

6)

access information about his/her account through a telephone call and by giving the coded
Personal Identification Number (PIN) to the bank. Telebanking is extensively user friendly and
effective in nature.

To get a particular work done through the bank, the users may leave his instructions in
the form of message with bank.

7)

Facility to stop payment on request. One can easily know about the cheque status.

Information on the current interest rates.

Information with regard to foreign exchange rates.

Request for a DD or pay order.

D-Mat Account related services.

And other similar services.

Mobile Banking: A new revolution in the realm of e-banking is the emergence of

mobile banking. On-line banking is now moving to the mobile world, giving everybody with a
mobile phone access to real-time banking services, regardless of their location. But there is
much more to mobile banking from just on-lie banking. It provides a new way to pick up
information and interact with the banks to carry out the relevant banking business. The potential
of mobile banking is limitless and is expected to be a big success. Booking and paying for travel
and even tickets is also expected to be a growth area.
According to this system, customer can access account details on mobile using
the Short Messaging System (SMS) technology6 where select data is pushed to the mobile
device. The wireless application protocol (WAP) technology, which will allow user to surf the net
on their mobiles to access anything and everything. This is a very flexible way of transacting
banking business.

39

Already ICICI and HDFC banks have tied up cellular service provides such as Airtel,
Orange, Sky Cell, etc. in Delhi and Mumbai to offer these mobile banking services to their
customers.

Internet Banking: Internet banking involves use of internet for delivery of banking

8)

products and services. With internet banking is now no longer confirmed to the branches where
one has to approach the branch in person, to withdraw cash or deposits a cheque or request a
statement of accounts. In internet banking, any inquiry or transaction is processed online
without any reference to the branch (anywhere banking) at any time.
The Internet Banking now is more of a normal rather than an exception due to the fact
that it is the cheapest way of providing banking services. As indicated by McKinsey Quarterly
research, presently traditional banking costs the banks, more than a dollar per person, ATM
banking costs 27 cents and internet banking costs below 4 cents approximately. ICICI bank was
the first one to offer Internet Banking in India.

Benefits of Internet Banking:

Reduce the transaction costs of offering several banking services and diminishes the
need for longer numbers of expensive brick and mortar branches and staff.

Increase convenience for customers, since they can conduct many banking transaction
24 hours a day.

Increase customer loyalty.

Improve customer access.

Attract new customers.

Easy online application for all accounts, including personal loans and mortgages

Financial Transaction on the Internet:

Electronic Cash: Companies are developing electronic replicas of all existing payment system:
cash, cheque, credit cards and coins.

40

Automatic Payments: Utility companies, loans payments, and other businesses use on
automatic payment system with bills paid through direct withdrawal from a bank account.
Direct Deposits: Earnings (or Government payments) automatically deposited into bank
accounts, saving time, effort and money.
Stored Value Cards: Prepaid cards for telephone service, transit fares, highway tolls, laundry
service, library fees and school lunches.
Point of Sale transactions: Acceptance of ATM/Cheque at retail stores and restaurants for
payment of goods and services. This system has made functioning of the stock Market very
smooth and efficient.
Cyber Banking: It refers to banking through online services. Banks with web site Cyber
branches allowed customers to check balances, pay bills, transfer funds, and apply for loans on
the Internet.
9)

Demat: Demat is short for de-materialization of shares. In short, Demat is a process

where at the customers request the physical stock is converted into electronic entries in the
depository system.
In January 1998 SEBI (Securities and Exchange Board of India) initiated DEMAT
ACCOUNTANCY System to regulate and to improve stock investing. As on date, to trade on
shares it has become compulsory to have a share Demat account and all trades take place
through Demat.

How to Operate DEMAT ACCOUNT?

One needs to open a Demat Account with any of the branches of the bank. After opening
an account with any bank, by filling the Demat request form one can handover the securities.
The rest will be taken care by the bank and the customer will receive credit of shares as soon as
it is confirmed by the Company/Register and Transfer Agent. There is no physical movement of
share certification any more. Any buying or selling of shares is done via electronic transfers.

41

1) If the investor wants to sell his shares, he has to place an order with his broker and give
a Delivery Instruction to his DP (Depository Participant). The DP will debit hi s account
with the number of shares sold by him.
2) If one wants to buy shares, he has to inform his broker about his Depository Account
Number so that the shares bought by him are credited in to his account.
3) Payment for the electronic shares bought or sold is to be made in the same way as in
the case of physical securities.

BANKING SERVICES
Banking covers so many services that it is difficult to define it. However, these
basic services have always been recognized as the hallmark of the genuine banker. These
are

The receipt of the customers deposits

The collection of his cheques drawn on other banks

The payment of the customers cheques drawn on himself

There are other various types of banking services like:

1) Advances Overdraft, Cash Credit, etc.
2) Deposits Saving Account, Current Account, etc.
3) Financial Services Bill discounting etc.
4) Foreign Services Providing foreign currency, travelers cheques, etc.
5) Money Transmission Funds transfer etc.
6) Savings Fixed deposits, etc.
7) Services of place or time ATM Services.

42

8) Status Debit Cards, Credit Cards, etc.

Customer Services in Commercial Banks:

Customer service is the service provided in support of a banks core products.
Customer service often includes answering questions; handling complaints. Customer service
can occur on site (as when an onstage employee helps a customer or answers a question) or it
can occur over the phone or the Internet. Quality customer service is essential to building
cordial customer relationship.
Banking being a service industry, a lot depends on efficient and prompt customer
service. Customer service is the most important duty of the banking operations. Prompt and
efficient service with smile will develop good public relations reduce complaints and increase
business.

Why is Customer Service Important?

Changing customer expectations: Today the customer is more demanding and more
sophisticated than he or she was thirty years ago.
The

increased

importance

of

customer

service:

With changing

customer

expectations, competitors are seeing customer service as a competitive weapon with

which they differentiate their products and services.
The need for a relationship strategy: To ensure that a customer service strategy that
will create a value preposition for customers should be formulated implemented and
controlled. It is necessary to give it a central role and not one that is subsumed in the
various elements of the marketing mix.
The customer is the king pim in growth organizations like commercial banks.
Only those institutions which work according to his dictates will flourish. Quality, Consistency
and Durability at low price are the final expectations of a customer. Quality will have to be
unambiguous, of world class quality. Quality cannot be of minimum acceptable standards.
Customer responsiveness must be quick and also competent. Speed, performance and cost will
be the new values mantra for success.

43

The ten key areas of customers services to be attended timely and regularly are:
i.

Submission of statement of A/Cs to customers

ii.

Updating of savings pass books.

iii.

Teller system efficiency.

iv.

Cleanliness and Upkeep of premises.

v.

Intermediate Credit for institution cheques/land bills.

vi.

Advance intimation to customers for rewards of Term Deposits Receipts on maturity.

vii.

Advance for Debit/credit to accounts.

viii.

Punctuality of staff.

CHAPTER 2

44

INTRODUCTION OF ICICI BANK

Type

Private, BSE & NSE, NYSE

Founded

1955 (as Industrial credit and

Investment corporation of India)

Headquarters
ICICI Bank Ltd.,
ICICI Bank Towers,
Bandra Kurla

45

Mumbai, India

Key people

N Vaghul, K.V. Kamath, Chanda

Kochhar, V Vaidyanathan, Madhabi
Puri

Industry

Banking
Insurance
Capital Markets and allied industries

Products

Loans, Credit Cards, Savings,

Investment vehicles, Insurance etc.

OVERVIEW
ICICI Bank (formerly Industrial Credit and Investment Corporation of India). ICICI Limited
was established in 1955 by the World Bank, the Government of India and the Indian Industry, for
the promotion of industrial development in India by giving project and corporate finance to the
industries in India.
ICICI Bank has grown from a development bank to a financial conglomerate and has become
one of the largest public financial institutions in India. ICICI Bank has financed all the major
sectors of the economy, covering 6,848 companies and 16,851 projects.
ICICI Bank Fact Files:
Network: 580 branches
ATMs: Over 2000
Abroad Subsidiaries: United Kingdom and Canada
Abroad branches: Singapore and Bahrain
Representative offices: United States, China, United Arab Emirates, and Bangladesh and
South Africa.

46

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. 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 (BSE: ICICI) (Industrial Credit and Investment Corporation of India) is India's
largest private sector bank in market capitalization and second largest overall in terms of assets.
Bank has total assets of about USD 100 billion (at the end of March 2008), a network of over
1,491 branches, 22 regional offices and 49 regional processing centers, about 4,485 ATMs (at
the end of September 2008), and 24 million customers (at the end of July 2007). ICICI Bank
offers a wide range of banking products and financial services to corporate and retail customers
through a variety of delivery channels and specialized subsidiaries and affiliates in the areas of
investment banking, life and non-life insurance, venture capital and asset management. (These
data are dynamic.) ICICI Bank is also the largest issuer of credit cards in India. ICICI Bank has
got its equity shares listed on the stock exchanges at Kolkata and Vadodara, Mumbai and the
National Stock Exchange of India Limited, and its ADRs on the New York Stock Exchange
(NYSE).
The Bank is expanding in overseas markets and has the largest international balance sheet
among Indian banks. ICICI Bank now has wholly-owned subsidiaries, branches and
representatives offices in 18 countries, including an offshore unit in Mumbai. This includes
wholly owned subsidiaries in Canada, Russia and the UK (the subsidiary through which the
hisave savings brand is operated), offshore banking units in Bahrain and Singapore, an advisory
branch in Dubai, branches in Belgium, Hong Kong and Sri Lanka, and representative offices in
Bangladesh, China, Malaysia, Indonesia, South Africa, Thailand, the United Arab Emirates and
USA. Overseas, the Bank is targeting the NRI (Non-Resident Indian) population in particular.

47

ICICI Bank currently has subsidiaries in the United Kingdom, Russia and Canada, branches
in Singapore, Bahrain, Hong Kong, Sri Lanka and Dubai International Finance Center and
representative offices in the United States, United Arab Emirates, China, South Africa and
Bangladesh. Our UK subsidiary has established a branch in Belgium. ICICI Bank is the most
valuable bank in India in terms of market capitalization.
ICICI Bank's equity shares are listed in India on the Bombay Stock Exchange and the
National Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are
listed on the New York Stock Exchange (NYSE).
ICICI Bank has formulated a Code of Business Conduct and Ethics for its Directors and
employees. At June 5, 2006, ICICI Bank, with free float market capitalization of about Rs.
480.00 billion (US$ 10.8 billion) ranked third amongst all the companies listed on the Indian
stock exchanges.
ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial Institution,
and was its wholly owned subsidiary. ICICI's shareholding in ICICI Bank was reduced to 46%
through a public offering of shares in India in fiscal 1998, an equity offering in the form of ADRs
listed on the NYSE in fiscal 2000, ICICI Bank's acquisition of Bank of Madura Limited in an allstock amalgamation in fiscal 2001, and secondary market sales by ICICI to institutional
investors in fiscal 2001 and fiscal 2002. ICICI was formed in 1955 at the initiative of The World
Bank, the Government of India and representatives of Indian industry.
The principal objective was to create a development financial institution for Providing
medium-term and long-term project financing to Indian businesses. In the 1990s, ICICI
transformed its business from a development financial institution offering only project finance to
a diversified financial service 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

48

become the first Indian company and the first bank or financial institution from non-Japan Asia
to be listed on the NYSE.
In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger of
ICICI and two of its wholly owned retail finance subsidiaries, ICICI Personal Financial Services
Limited and ICICI Capital Services Limited, with ICICI Bank. The merger was approved by
shareholders of ICICI and ICICI Bank in January 2002, by the High Court of Gujarat at
Ahmadabad in March 2002, and by the High Court of Judicature at Mumbai and the Reserve
Bank of India in April 2002. Consequent to the merger, the ICICI group's financing and banking
Operations, both wholesale and retail, have been integrated in a single entity.

BUSINESS OBJECTIVES
Vision
To be the leading provider of financial services in India and a major global bank.
Mission
We will leverage our people, technology, speed and financial capital to:
be the banker of first choice for our customers by delivering high quality, world-class
service.
Expand the frontiers of our business globally.
Play a proactive role in the full realisation of Indias potential.
maintain a healthy financial profile and diversify our earnings across businesses and
geographies.
Maintain high standards of governance and ethics.
Contribute positively to the various countries and markets in which we operate.
Create value for our stakeholders.

49

Product and Services

Service and banking of ICICI bank categorized in to personal banking, business banking and
NRI banking services.
Personal banking- Deposit in form of saving, recurring, term deposit, senior citizen deposit and
children depository account are there for individual customer can also avail of their housing,
automobile, farm equipment, business or personal loan scheme. Personal client can also invest
in mutual funds and participate in stock trading through ICICI bank.
Business banking Business banking services of ICICI Bank are exhaustive. Project
financing, deal assessment, and land evaluation are investment banking services offered to
corporate clients. Global trade and cash management transaction services facilitate remittances
and receipts across important cities. Capital market and custodial services enable business
houses to participate in equity trading and transfer across major stock markets of world.

Customer
ICICI bank targets all segment of customer with various types of products and services. I
interacted with a a lot of customers and collect their feedback on the given services of company,
and feedback are positive response from all point of view. Customers are beneficiary from both
sides monetary as well as non monetary. The bank targets to add nearly 500,000 customers
under the new scheme in the next one year and plans to offer auto loans through the new online
channel in the future, ICICI Bank's Executive Director, V Vaidyanathan, said here.
"As of now, nearly 24 per cent of our customer transactions are happening through internet. We
are primarily targeting our urban customers, who constitute nearly 70 per cent of our total
customer-base," Vaidyanathan said.
Customers, opting for the service can also benefit from the quantum optima facility, wherein if
the balance exceeds Rs 5,000, the money will automatically be transferred to a fixed deposit
scheme, he said. The facility, which also enable customers to transact between an ICICI Bank

50

account and accounts in other banks, is being offered free of cost, he said ICICI bank, presently,
has above 2 crore customers. The lender opened nearly 470 branches in the last fiscal. The
lender has also plans to launch 'SMS n Cash' scheme later this week under which ICICI account
holders can transfer funds to those who do not have a bank account. ICICI bank is strongly
committed to protecting the privacy of its customers and has taken all necessary and
reasonable measures to protect the confidentiality of the customer information and its
transmission through the world wide web and it shall not be held liable for disclosure of the
confidential information when in accordance with this privacy commitment or in terms of the
agreements, if any, with the customers.
ICICI bank Endeavours to safeguard and ensure the security of the information provided by the
customer. ICICI bank uses 128-bit encryption, for the transmission of the information, which is
currently the permitted level of encryption in India. When the information provided by the
customers is not transmitted through this encryption, the customer's system (if configured
accordingly) will display an appropriate message ensuring the best level of secrecy for the
customer's information.
The customer would be required to cooperate with ICICI bank in order to ensure the security of
the information, and it is recommended that the customers necessarily choose their passwords
carefully such that no unauthorized access is made by a third party. To make the password
complex and difficult for others to guess, the customers should use combination of alphabets,
numbers and special characters (like! @, #, $ etc.). The customers should undertake not to
disclose their password to anyone or keep any written or other record of the password such that
a third party could access it.
ICICI bank undertakes not to disclose the information provided by the customers to any
person, unless such action is necessary to:
Conform to legal requirements or comply with legal process;
Protect and defend ICICI bank's or its affiliates rights, interests or property;
Enforce the terms and conditions of the products or services; or
Act to protect the interests of ICICI bank, its affiliates, or its members, constituents or of
other persons.

51

Competitor

The main competitor of is ICICI bank is SBI because this bank is totally taken by government
after this bank HDFC bank is the main competitor of ICICI bank .There are different types of
segment operation semment, investment and services, demat and NRI services.The competitor
from the operation segment are State Bank of India(SBI), Axis, Housing Development and
Financial corporation(HDFC) etc.From the investment And service sector HDFC standard life
insurance corporation, Bharati Axa life insurance ,Reliance Life Insurance Corporation, Max new
work life insurance SBI Life insurance,Life Insurance Corporation of India.In demat section India
bull,Anangram,SBI,HDFC,India Infoline are the main competitor of ICICI bank.In the NRI service
section the Western Union bank is the main competitor of ICICI bank.There are some other
company who also compete with the ICICI bank After the SBI the HDFC bank is the main
competitor of ICICI bank.
HDFC Bank Ltd. is a commercial bank of India, incorporated in August 1994, after the Reserve
Bank of India allowed establishing private sector banks. The Bank was promoted by the
Housing Development Finance Corporation, a premier housing finance company (set up in
1977) of India. HDFC Bank has 1,500 branches and over 2,890 ATMs, in 530 cities in India, and
all branches of the bank are linked on an online real-time basis. As of September 30, 2008 the
bank had total assets of INR 1006.82 billion.
State Bank of India is the largest bank in India. It is also, measured by the number of branch
offices and employees, the second largest bank in the world.[citation needed] The bank traces
its ancestry back through the Imperial Bank of India to the founding in 1806 of the Bank of
Calcutta, making it the oldest commercial bank in the Indian Subcontinent. The Government of
India nationalised the Imperial Bank of India in 1955, with the Reserve Bank of India taking a
60% stake, and renamed it the State Bank of India. In 2008, the Government took over the
stake held by the Reserve Bank of India.SBI provides a range of banking products through its
vast network in India and overseas, including products aimed at NRIs. With an asset base of
$126 billion and its reach, it is a regional banking behemoth. SBI has laid emphasis on reducing
the huge manpower through Golden handshake schemes and computerizing its operations.The
State Bank Group, with over 16000 branches , has the largest branch network in India. It has a

52

market share among Indian commercial banks of about 20% in deposits and advances, and SBI
accounts for almost one-fifth of the nations loans.There are some other banks which gives
challenging some how in the banking and service sectorthey are:
Allahabad Bank
Andhra Bank
Bank of Baroda
Bank of India
Bank of Maharashtra
Canara Bank
Central Bank of India
Corporation Bank
Dena Bank
IDBI Bank
Indian Bank
Indian Overseas Bank
Oriental Bank of Commerce
Punjab & Sind Bank
Punjab National Bank
Syndicate Bank
UCO Bank

53

 Union Bank of India

United Bank of India
Vijaya Bank

Environment
An employer the bank extends a lot of authority along with justified accountability to you. The
working culture is very collaborative in nature. It can be owed to the fact that the bank is highly
segmented with a lot of overlapping and mostly distinct roles and responsibility.ICICI Bank has
established itself as a one stop solution (Universal Bank) for all financial need of individuals and
institutions alike. The credit for the same can be attributed to its vast network, probably the
largest among private sector banks.This makes the life of an employee a lot easier, especially
for those who face the external customers. You do not have to justify your organization, it is only
the product that has to be pitched. As far as employee benefits are concerned, ICICI Bank offers
a lot of financial benefits ranging from your family health insurance to your kids school
donations. The organization is sensitive to the needs of its employees as this quality is one of
the building blocks (DNA) of the organizational culture. The organization will be giving you
enough flexibility to innovate and come-up with new ideas. It will also exhibit its in terms of well
laid systems, processes and infrastructure. It will extend a fast track growth for those with
extraordinary talent at the same time offer stability to those who are able to deliver
satisfactorily.Overall, I would say its a lifetime experience to work with such a behemoth
organization. It might not be the best paymaster but it definitely will impress you with its
capability as the head master (Principal) of banking industry.there are huge competition
between the eployee to achieve theo goal.

TECHNOLOGY
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 sy ICICI Bank was using Teradata for its data warehouse. However,

54

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-ofconcept: Sybase, SAS and Netezza. The primary criteria for evaluation was the price-toperformance 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 wasthat even with overall lower costs, we could
achieve significantly better query performanceafter implementing the Sybase enterprise
warehouse solution." ICICI Infotech today launched an enterprise resource planning (ERP)
solution for the small and medium enterprises.
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.
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.
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.

55

Mr. R.K. Kanthi, Deputy General Manager, ICICI InfoTech, said there was no ERP package for
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.
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.
The Chennai centers were involved in research and development of Orion ERP solutions and
Premia, an insurance package.
ERP Systems Integration
Pinnacle Software Solutions has the expertise and experience to assist you with your enterprise
systems integration. From developing your strategy, through implementation and support, we
bring the right combination of resources, management skill sets, and technical know-how. We
will help you successfully integrate your Enterprise Resource Planning (ERP) systems into
your overall business and technology infrastructure.
Whether you are planning an upgrade of an existing ERP system, or a complete replacement of
a legacy application and platform, we can help you improve your financial, human resources,
electronic mail, and other business systems. We work with the leading ERP systems, including
the latest versions of the Oracle and PeopleSoft applications:

General Ledger
Accounts Payable
Accounts Receivable
Purchasing
Asset Management

Project Costing
Human Resources
Payroll
Benefits
Compensation

Our technology management solutions will help you migrate hardware platforms, improve
network and database performance, develop or refresh policies and procedures, and develop
sound disaster recovery and backup solutions. Please contact us to learn how Pinnacle
Software Solutions can help you develop solutions that fit your enterprise.

56

KEY SUBSIDIARIES
ICICI Prudential Life Insurance Company
ICICI Prudential life Insurance Company Limited was incorporated on 20th July 2000.The
authorized capital of the company is Rs.2300 million and the paid up capital is Rs.1500 million.
The company is joint venture of ICICI (74%) and UK based company Prudential Plc (26%). The
company was granted certificate of registration for carrying business, by Insurance Regulatory
and Development Authority on 24th November 2000. It commenced commercial operation from
19th December 2000 and becoming a leading private sector life insurance company.
The company recognizes that the driving force for gaining sustainable competitive advantage in
this business is superior customer experience and investment behind the brand. The company
aims to achieve this by striving to provide world class service level trough constant innovation in
product, distribution channels and technology based delivery.
Vision and Mission
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.

57

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. 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.
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

Management Team
Ms. Shikha Sharma, Managing Director
Mr. Kevin Wright, Executive Vice President - Sales & Distribution
Ms. Madhavi Soman, Chief - Strategic Initiatives
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
Corporate Office:
ICCI Prulife Towers,
1089, Appasahab Marathe Marg,
Prabhadevi,
Mumbai 400 025.
Telephone Number: 022-462 1600
Website : www.iciciprulife.com

58

ICICI Prudential Life Insurance Company (ICICI Life) maintained its market leadership in the
private sector with an overall market share of 9.3% based on retail new business weighted
received premium in fiscal 2010. ICICI Lifes total premium increased by 7.7% to Rs. 165.32
billion in fiscal 2010 with renewal premiums increasing by 19.4%. ICICI Lifes new business
annualised premium equivalent was Rs. 53.45 billion in fiscal 2010. ICICI Life achieved its first
year of accounting profits since inception in fiscal 2010 with a profit after tax of Rs. 2.58 billion.
The expense ratio has decreased from 11.8% in fiscal 2009 to 9.1% in fiscal 2010. Assets held
at March 31, 2010 were Rs. 573.19 billion compared to Rs. 327.88 billion at March 31, 2009.
ICICI Lifes unaudited New Business Profit in fiscal 2010 was Rs. 10.15 billion. Life insurance
companies make accounting losses in initial years due to business set-up and customer
acquisition costs in the initial years and reserving for actuarial liability. Further, in India,
amortization of acquisition costs is not permitted. These factors resulted in statutory losses for
ICICI Life since the companys inception till fiscal 2009. If properly priced, life insurance policies
are profitable over the life of the policy, but at the time of sale, there is a loss on account of nonamortized expenses and commissions, generally termed as new business strain that emerges
out of new business written during the year. New Business Profit is an alternate measure of the
underlying business profitability
(as opposed to the statutory profit or loss) and is the present value of the profits of the new
business written during the year. It is based on standard economic and non-economic
assumptions including risk discount rates, investment returns, mortality, expenses and
persistency assumptions.

ICICI Lombard General Insurance Company

ICICI Lombard General Insurance Company Limited is a 74:26 joint venture between ICICI
Bank Limited and Canada based 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
2000.

59

Board Members

Mr K V Kamath, Chairman

Mr R Athappan, Director

Mr B V Bhargava, Director

Mr Dileep Choksi, Director

Mr James F Dowd, Director

Ms Lalita D Gupte, Director

Ms Kalpana Morparia, Director

Mr S Mukherji, Director

Mr Chandran Ratnaswami, Director

Mr H N Sinor, Director

Mr Sandeep Bakhshi, Managing Director & CEO

Retail Segment of ICICI Lombard General Insurance :

ICICI Lombard's Retail Segment consists of personal insurance products - Health, Home, Motor
and Travel insurances.

Health Insurance
ICICI Lombard is known to be a pioneer in introducing innovative concepts in the Indian health
Insurance sector. Be it the floater concept, the critical illness cover or the tax gain policy, all
these were first introduced by ICICI Lombard. It was also one of the first general insurance
companies in India to have a robust online system in place for buying and renewing policies.
The various plans offered by ICICI Lombard include Family Floater Plan - where one policy
covers the entire family, Health Advantage Plus - where they cover OPD and dental expenses,
also help save maximum tax under section 80D and Critical Illness plan - a special policy
covering a list of critical illnesses. They also have a basic Personal Accident Plan which covers
against accidents. ICICI Lombard health plans also provide coverage against terrorism.

Home Insurance
Home Insurance is actually one of the most neglected areas in the general insurance category.
Simply, because people in general, especially in India, do not give much importance to it.
However, in the recent years, due to the increase in awareness, and the great extent of damage

60

caused to property due to natural calamities and terrorism, it has been gaining importance.
The Home Insurance Policy offered by ICICI Lombard covers both the structure and the
contents of the house. You can opt for either of the covers or both. Unlike other policies, it also
covers damage due to terrorist activities, loss of cash, public liability, temporary resettlement
and others.

Motor Insurance
As Motor Insurance is mandatory in India and is governed by the Motor Tariff Act, the policies
offered by various companies are more or less the same. There is not much room for innovation
in this category. ICICI Lombard too offers Car Insurance and Two Wheeler Insurance. They are
known to offer one of the best rates in the market. As the entire buying process is online and is
instant, without any submission of documents or other formalities, people generally opt it for
convenience.

Travel Insurance
Travel insurance is one of the most prominent sector of general insurance, especially overseas
travel insurance and student medical insurance. ICICI Lombard offers various options in both
the categories. The Overseas Travel Plans and Student Medical Plans offered cover medical
and non-medical expenses, including compensation for flights hijacked and pre existing
diseases in case of emergency. They charge on a per day basis if the travel is more than 7
days. ICICI Lombard has tied up with United Health Group to facilitate access to all its clinics
while in U.S.
The Student Medical Plans are accepted in almost universities worldwide. They also have a
section in their website, University Search, where one can find specific plans for specific
universities.
All the above retail policies can be bought online, without any documentation through their
website www.icicilombard.com .One can not only buy, but also manage and renew their
insurance policies online.

NRI Services
ICICI Lombard has developed insurance policies for Non-resident Indians that can be bought,
renewed and tracked online.

61

Parents' Health Insurance covers hospitalization and medical expenses incurred by parents of
the policyholder in India. For parents' travelling outside India, ICICI Lombard offers a Parents'
Overseas Travel Insurance policy.
An NRI can insure his children/ dependents travelling abroad to study, under the Student
Medical Insurance plan. Likewise, the Home Insurance and Car Insurance schemes enables
an NRI to secure his assets in India.
Channels
Channel is the term used for the various approaches a company uses to tap its customers.
ICICI Lombard uses a multi channel approach to ensure the sales, service and other allied
activities are carried out in the most effective manner.
Retail
The Retail channel consists of sales executives, sales officers, brokers and agents. They are
the one who are in direct contact with the customers and bring the innovative insurance
solutions to their doorsteps.
Online
ICICI Lombard has developed a web-based system to meet all the pre and post-policy
transaction. One can get quotes, buy, renew and track their policies onlin e through the website
[www.icicilombard.com]. With the do-it-yourself architecture, the online channel is fast,
convenient, easy to understand and operate.

ICICI Lombard General Insurance Company (ICICI General) maintained its leadership in the
private sector with an overall market share of 9.5% in fiscal 2010. ICICI Generals gross written
premium during fiscal 2010 was Rs. 34.32 billion. The industry continued to witness a slowdown
in growth on account of de-tariffication of the general insurance industry whereby insurance
premiums were freed from price controls, resulting in a significant reduction in premium rates.
The industry also continued to witness the impact of motor third party insurance pool for third
party insurance of commercial vehicles. ICICI General achieved a profit after tax of Rs. 1.44
billion in fiscal 2010 compared to Rs. 0.24 billion in fiscal 2009.

62

ICICI Prudential Asset Management Company

ICICI Prudential Asset Management Company (ICICI AMC) was the third largest asset
management company in India. The average assets under management of ICICI AMC
increased from Rs. 514.56 billion for March 2009 to Rs. 810.18 billion for March 2010. ICICI
Prudential AMC achieved a profit after tax of Rs. 1.28 billion in fiscal 2010 compared to Rs. 7.1
million in fiscal 2009.

ICICI Venture Funds Management Company Limited

ICICI Venture Funds Management Company Limited (ICICI Venture) maintained its leadership
position in private equity in India, with funds under management of about Rs. 114.40 billion at
year-end fiscal 2010. ICICI Venture achieved a profit after tax of Rs. 515.2 million in fiscal 2010
compared to Rs. 1.48 billion in fiscal 2009. The profit for fiscal 2009 includes gains from the sale
of stake in TSI Venture.

ICICI Securities Limited and ICICI Securities Primary Dealership Limited

ICICI Securities achieved a profit after tax of Rs. 1.23 billion in fiscal 2010 compared to Rs. 0.04
billion in fiscal2009. ICICI Securities Primary Dealership achieved a profit after tax of Rs. 849.8
million in fiscal 2010 despite the significant increase in yields on government securities, as
compared to a profit after tax of Rs. 2.72 billion in fiscal 2009
.

ICICI Bank UK PLC

ICICI Bank UK PLC (ICICI Bank UK) offers retail and corporate and investment banking
services in the UK and Europe. During fiscal 2010, ICICI Bank UK continued to focus on
rebalancing its deposit base towards retail term deposits and the proportion of retail term
deposits in total deposits increased from 58% at March 31, 2009 to 66% at March 31, 2010.
ICICI Bank UKs profit after tax for fiscal 2010 was USD 37.0 million compared to US$ 6.8
million in fiscal 2009. ICICI Bank UKs capital position continued to be strong with a capital
adequacy ratio of 17.3% at March 31, 2010.

63

ICICI Bank Canada

ICICI Bank Canada is a full-service bank which offers a wide range of financial solutions to cater
to personal, commercial, corporate, investment, treasury and trade requirements. ICICI Bank
Canadas profit after tax for fiscal 2010 was CAD 35.4 million compared to CAD 33.9 million in
fiscal 2009. At March 31, 2010, ICICI Bank Canada had total advances of CAD 3.89 billion and
total assets of CAD 5.68 billion. ICICI Bank Canadas capital position continued to be strong
with a capital adequacy ratio of 23.4% at March 31, 2010.

64

ICICI Bank Product & Customer Segment:

PERSONAL BANKING
Loan Product

Auto Loan
Loan
Against
Security
Loan
Against
Property
Personal loan
Credit card
2-wheeler loan
Commercial
vehicles finance
Home loans
Retail
business
banking
Tractor loan
Working
Capital
Finance
Construction
Equipment Finance
Health
Care
Finance
Education Loan
Gold Loan
Cards

Credit Card
Debit Card
Prepaid Card

-------------------------------Forex Services
------------------------------- Product & Services
Trade Services
Forex service
Branch Locater

Deposit Product

Saving a/c
Current a/c
Fixed deposit
Demat a/c
Safe
Deposit
Lockers

Payment Services

Direct Pay
Money

Mutual Fund
Bonds
Knowledge Centre
Insurance
General
and
Health
Insurance
Equity and Derivatives
Mudra Gold Bar

Access To Bank

NetSafe
Merchant
Prepaid Refill
Bill pay
Visa Bill pay
Insta Pay
Visa
Transfer
eMonies
Electronic
Transfer

Investment & Insurance

Net Banking
One View
Insta Alert
Mobile Banking
ATM
Phone Banking
Email Statements
Branch Network

Funds

65

RBI Guidelines

Online Payment of
Direct Tax

WHOLESALE BANKING
Corporate

Funded
Services
Non
Funded
Services
Value
Added
Services
Internet Banking

Small and Medium

Enterprises

Financial Institutions and

Trusts
BANKS
Clearing Sub-Membership
RTGS sub-membership
Fund Transfer
ATM Tie-ups
Corporate Salary a/c
Tax Collection
Financial Institutions

Funded Services
Non Funded Services
Specialized Services
Value added services
Internet Banking

Mutual Funds
Stock Brokers
Insurance Companies
Commodities Business
Trusts

NRI SERVICES
Accounts & Deposits

Rupee Saving a/c

Rupee Current a/c
Rupee Fixed Deposits
Foreign Currency Deposits
Accounts for Returning Indians

Remittances

North America
UK
Europe
South East Asia
Middle East
Africa
Others

66

Quick remit
IndiaLink
Cheque LockBox
Telegraphic/ Wire Transfer
Funds Transfer Cheques/DDs/TCs
Investment & Insurances

Mutual Funds
Insurance
Private Banking
Portfolio Investment Scheme
Payment Services

Loans

Home Loans
Loans Against Securities
Loans Against Deposits
Gold Credit Card
Access To Bank

PRODUCTS & SERVICES OFFERED BY ICICI BANK

ICICI Bank offers wide variety of Deposit Products to suit your requirements. Coupled with
convenience of networked branches/ ATMs and facility of E-channels like Internet and Mobile
Banking, ICICI Bank brings banking at your doorstep. Select any of its deposit products and
provide your details online and their representative will contact you for Account Opening.

SAVING ACCOUNTS
ICICI Bank offers customers a power packed Savings Account with a host of
convenient features and banking channels to transact through. So now
customers can bank at their convenience, without the stress of waiting in
queues.

Special Savings Account:

The Special Savings Account has been designed keeping in mind the specific needs of
organizations such as Trusts, Associations, Societies, Councils, Clubs etc. It provides
organizations solutions with added value and is ideal for tax exempted entities.

LIFE PLUSSenior citizens savings account

67

LIFE PLUS,a special savings account for senior citizens

from ICICI Bank is packed with a host of benefits, designed
keeping your unique financial requirements in mind.

Special senior citizens desk to cater to all banking transactions, so that you dont
wait in queues.

Higher interest rate on FD/RD: avail the combined benefits of safety, flexibility and
attractive returns with ICICI Bank Fixed Deposit and Recurring Deposit.

Free special senior citizen LIFE PLUS debit card.

Money multiplies facility.

Extended banking hours allows you to visit our branches, as per your convenience.

Anywhere banking access to various services, ICICI Bank has to offer anytime,
anywhere and from any place, including branches, ATMs and phone banking.

Nomination facility available.

Quarterly average balance (QAB) requirement of Rs.5000.

Quarterly physical statements are delivered to your doorstep to absolutely free of

cost.

Passbook on request.

Young Stars Account:

Young Stars is a banking service for children, aged 1day -18
years, brought to you by ICICI Bank to help the parents meet
the present and future aspirations that they hold for their child.
It offers various savings and investment options to the parent
along with teaching the child to manage his/her personal finance in a more responsible and
independent manner. Young Stars will guide your child through the world of banking -through
checking the account balance, fun zones and special pages on the internet. It makes banking a
pleasure and of course teaches your child to manage their personal finances. With the pocket
money that you transfer to your child's account, you can even shop with him / her at Young
Stars very own shopping page. You can even open a recurring deposit in your child's name.

68

Once you are done with your 'banking', you can access your child's account with all the fun links
to special zones designed to suit your child's area of interests and also impart knowledge on the
current events of the world.

Advantage woman savings account

The ICICI Bank Advantage Woman Account enables todays
independent women to enjoy hassle-free banking services.
Besides the core ICICI Bank advantage, the Advantage Woman
Savings Account is packed with special benefits for our women
customers. Enjoy your present and plan for the future with ICICI Banks Advantage Woman
Savings Account. Advantage Woman offers a specially designed woman's debit card which
helps you shop and save simultaneously, manages your household expenditures and comes
with a bag full of offers attached to it.

Special International Womans Debit Card with lots of offers.

Free unlimited access to any banks ATM.

Bill Pay facility & Multi Channel Access.

Payable-at-par cheque book.

Nomination facility available.

Zero balance facility with an RD of Rs.2000 or Quarterly Average Balance (QAB)

requirement of Rs. 10,000.

Current Accounts:
Every business requires efficient banking facilities to support its business activities. ICICI Bank
offers premium quality service, unfolding a wide array of class products. With technology
leadership and service the bank is able to meet some of the most challenging financial needs of
clients. A Current Account is one that is required by Businessman,
companies,

Institutions,

Public

authorities,

public

Joint stock

corporations

etc.

Any

business that has numerous banking transactions need a current account as it

69

Allows running account supporting unlimited withdrawals and deposits.

Is meant for convenience and not to save money.

Roaming Current Account

Only Roaming Current Account from ICICI Bank travels the distance with customers business.
With advanced technological features such as MCC and LCC, banking needs are well taken
care of; customers can access their accounts at over 500 networked branches across the
country.
So while customers take care of their business, ICICI Banks Roaming Current Account
simplifies banking for them.

Salary Accounts
Salary Account is a feature rich corporate payroll account with benefits for both corporates and
its employees.

T he process of drawing cheques for salaries is replaced by

sending a single ASCII file to the bank and the amount is
directly credited into the employees salary account

Cuts down payroll processing workload

Salar y Account can be opened with minimum 10 employees

Instant credit of salaries

ICICI Bank Salary Account is a benefit-rich payroll account for Employers and Employees. As an
organization, you can opt for our Salary Accounts to enable easy disbursements of salaries and
enjoy numerous other benefits too. With ICICI Bank Salary Accounts your employees will enjoy
the convenience of :

Having the largest network of ATMs at their command,

Free 24 hour Phone Banking,

Free Internet Banking.

70

All that the organization would require to do is to send ICICI Bank an advice (in form of a
cheque/debit instruction etc) for the total salary amount along with the salary details of the
designated employees in a soft and hard copy format and we will credit the respective
employees' accounts as per your statement of advice. ICICI Bank Salary Accounts benefits you
in more than one ways:

Reduces paperwork.

Saves remittance costs.

Employees receive instant credit of salaries. More convenient than ECS. Besides all of the
above, employees automatically become ICICI Bank account holders with special benefits and
privileges of 8-8 banking, Investment advisory and much more...

Fixed deposits:
Fixed deposits are options which help you grow your money
thus creating wealth in a safer and secure way.
ICICI provides its customers with various kinds of Fixed deposit
facilities that are flexible and cater to customers who have
different needs and wants in their fixed deposits.
ICICI provides a Fixed Deposit that allows customers to deposit their money for just as long as
you wish.

Wide range of tenures 15 days to 10 years.

Choice of investment plan traditional and cumulative deposits.

Partial withdrawal allowed.

Loan facility available you can avail loan up to 90% of principal and accrued interest.

Auto renewal facility you can choose this option so that the deposit can be renewed on
maturity.

Interest compounded quarterly.

Additional interest rate of 0.5% for senior citizens.

Recurring Deposits:
71

ICICI Bank Recurring Deposits are an ideal way to invest small amounts of money every
month and end up with a large kitty on maturity. High recurring
billing and recurring payments can be a drain on your
finances and hence large investments may seem a plan away.
Recurring deposits aims to encourage savings without putting
any stress on customers finances by making them to put a lump sum amount in fixed deposit in
one go. The recurring deposit also attracts high rate of return that are identical to the fixed
deposit rates and most importantly no TDS is applicable in it .the minimum balance of deposit is
of Rs.500 and thereafter in multiples of Rs.100 the minimum period is 6 months and thereafter
in multiples of 3 months, nomination facility is also available.

Security Deposits:
A few Corporates stipulate to their new employees to provide
Security Deposit to reduce attrition. ICICI Banks proposal for
the employee is to keep the Security Deposit in the form of a
Fixed Deposit (FD) with the Bank. The employee cannot
withdraw such FDs without the consent of the company and the
company has the right to withdraw the FD in the event of employee leaving the organization
before a certain stipulated period.

ICICI Bank Tax-Saver Fixed Deposit

ICICI Banks Tax-Saver Fixed Deposit enables you to save tax and earn high returns. A dual
benefit option structured to maximize your advantage. ICICI Banks Tax Saver FD is the perfect
solution for your investment needs.

EEFC Account
Indian exports have surged over the last decade owing to an unprecedented boom in sectors
like software, biotechnology, gems, Jewellery, textiles etc. As a result of this, the volume of
inward remittances has also increased significantly. To shield the firms engaged in regular
export and import from the exchange rate fluctuations RBI has allowed parking of foreign
currency by exporters in an account designated as Exchange Earners Foreign Currency

72

Account (EEFC). EEFC accounts are Current Accounts held in foreign currency with authorized
dealers of foreign exchange in the country.

Resident Foreign Currency (Domestic) Account

Do you want to save money while buying foreign currency for travelling abroad? You can buy
travelers cheques, foreign currency in cash and foreign currency demand draft for your
expenses overseas. If you are a frequent traveler, you may not want to go through the hassles
of buying foreign currency every time you travel abroad.
The Reserve Bank of India has now made it easier for you to access foreign currency by
permitting a foreign currency account (domestic) for resident Indians. In line with RBI guidelines,
ICICI Bank has come up with a scheme that helps you get rid of all your Forex worries. You can
park your foreign currency in ICICI Bank under RFC (D) account. Non-interest bearing Resident
Foreign Currency (D) (RFC (D)) with ICICI Bank can be maintained in four major currencies
(USD, EURO, GBP and Japanese Yen)

PRIVILEGE BANKING:
Privilege banking service ensures preferential treatment to its customers.

Silver privilege A/c

Waiver of multi-city cheque book usage up to Rs. 1,00,000 per month.

Waiver of DD/PO charges for up to Rs.50,000 per day.

Preferential rates of gold coins, deposits locker &foreign exchange.

Quarterly average balance requirement of Rs.25000.

Gold privilege A/c

Priority processing at all ICICI Bank branches and customer care.

Free usage of payable -at-par cheque book.

Free international gold debit card with higher daily withdrawal and spend limit.

Waiver of DD/PO charges for up to Rs.100,000 per day.

Free anywhere banking facility.

73

Preferential rates for gold coins, deposit lockers and foreign exchange.

Quarterly Average Balance (QAB) requirement of Rs.50000.

Titanium privilege A/c

Branch relationship manager supported with phone banking relationship

manager.

Priority processing at ICICI Bank branches and customer care.

Free international titanium debit card with higher daily withdrawal and spend limit.

Free anywhere banking facility.

Free usage of multi-city cheque book.

Free physical monthly account statement.

Complete waiver on DD/PO charges.

Preferential rates for gold coins, deposit lockers and foreign exchange.

Quarterly average balance (QAB) requirement of Rs.75000 and Total

Relationship Value (TRV)of Rs. 5,00,000.

Family banking:
Superior product benefits of privilege banking, wealth management and
global private client (GPC) available to all the members of your family while
the required minimum balance can be maintained in any of the accounts.

Access to superior benefits for the entire family.

Flexibility to maintain balances across account.

Lower minimum balance requirement at individual customer level.

Single family bank convenience for the entire family and easier funds management.

Outward Remittance:
Send money to your loved ones abroad

74

ICICI Bank offers you a simple way to send money outside India. Our Outward Remittance
facilities make remitting money abroad quick, and reliable. ICICI Banks Outward Remittance is
the solution for your all your needs. Be it money for education, gift money or maintenance for
loved ones or donation for a cause. Our extensive network gives us reach to most parts of the
world.

Advantage Deposit
Advantage Deposit is a combination of fixed deposit and mutual fund investment, offering you
the safety of a fixed deposit and the returns of an equity fund. Advantage Deposit counters
equity-market fluctuations through Systematic Investment Plans.

Combination of a Fixed Deposit (with monthly interest payout) and Systematic

Investment Plan (SIP) of a Mutual Fund.

Re-investment of monthly interest payout of Fixed Deposit into systematic investment

plan of Mutual Fund.

Automatic debits to account through Standing Instruction / ECS debit mandate.

New Pension System of Government of India

ICICI Bank with 49 branches is a Point of Presence (POP) for the NEW PENSION SYSTEM
launched on May 1, 2009 by the Government of India. The scheme, promoted by the PFRDA
(Pension Fund Regulatory and Development Authority, Government of India), is a first of its kind
in India and is being launched pan-India by 22 other POP's as well.
The purpose of this pension scheme is to promote security of income to its subscribers in their
old age. The scheme will empower a subscriber to plan his own retirement and pension. It not
only will help him save for life after retirement but also is a good investment tool as the returns
are market-driven. For optimum returns, the Government has appointed six fund managers for
subscribers to choose from.

75

Various Loans offered by ICICI Bank

HOME LOAN
Interest rates on home loans have come down considerably in the last
few years. Individuals, who opted for housing loans in the years gone
by, are still servicing them at 17% to 21% per annum. Quite a price to
pay, since one can get a loan today for around 12% per annum. In
such a case, you can opt for a balance transfer. Under this scheme,
customers can replace their existing old high interest loan by a
cheaper (equal to applicable current rates) loan. ICICI Home Finance will not only finance the
balance amount of outstanding loan but also your prepayment charges to the old housing
finance

company.

The result:

A lower EMI with the same tenure .

A reduced tenure with the same EMI.

A reduced tenure and EMI .

The same EMI and tenure but an additional amount as a loan.

PERSONAL LOANS

76

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.

Loans for salaried & self employed individuals.

Loans are available from Rs. 20,000 to Rs. 15 Lakhs.

Repayment tenures from 12 - 60 months.

No Security, Collateral or Guarantors required.

Loans can be used for any purpose with no questions asked regarding the end use of
the loan.

A balance transfer facility available for those who want to retire any higher debt.

All loan repayments are done via equated monthly installments (EMI).

CAR LOAN

The NO. 1 financier for car loans in the country. Network of more
than 1500 channel partners in over 780 locations. Tie-ups with all
leading automobile manufacturers to ensure the best deals.
Flexible schemes & quick processing. Hassle-free application
process on the click of a mouse.

COMMERCIAL VEHICLE LOAN

Reaches you through more than 700 locations across

the country.

Range of products under one umbrella.

Funding of various products like HCVs, Buses,

MCVs, LCVs, 3 wheelers & used vehicle.

77

Range of services on existing loans & extended products like funding of new vehicles,
refinance on used vehicles, balance transfer on high cost loans, top up on existing loans,
Extend product, working capital loans & other banking products..

Preferred financier status with most of the leading manufacturers.

Simple documentation.

Quick turnaround time.

Flexible financing solutions to meet the individual requirement.

TWO WHEELER LOANS:

"Zoom" away in your favourite two wheeler. ICICI provides attractive
schemes at competitive interest rates.

Finance facility available for all two wheelers ranging from

mopeds to motor bikes.

Now avail Finance upto 90%* of the On Road Cost of the

vehicle, repayable in convenient tenure options ranging from 6 months to 36 months*.

Ride Easy Pay Easy with ICICI Bank Two Wheeler Loans.

In an unlikely case of your not meeting our norms NO PROBLEM - you can still avail our
loan, any blood relative can be your co-applicant.

Existing ICICI Bank Customers ride away on your favourite Two Wheeler by availing
Loan On Phone*-- a facility to get an instant loan over the phone!! Apply for loan online,
call or through sms.

FARM EQUIPMENT LOANS:

ICICI is the preferred financier for almost all leading tractor

manufacturers in the country.

ICICI finances farm equipments in over 381 locations spread

across the country.

Provides fast processing of files with easy documentation.

Flexible repayment options in tandem with the farmer's

seasonal liquidity.

78

Monthly, Quarterly and Half-yearly repayment patterns to choose from. Comfortable

repayment tenures from 1 year to 6 years.

CONSTRUCTION EQUIPMENT LOAN

Having funded infrastructure for over 4 decades, ICICI understands the
need of the customers better. ICICI Bank offers attractive financial
packages through their excellent distribution network. The products are
customized for new entrepreneur to large business houses. ICICI has
tie-up with leading construction equipment manufacturers for wide range of products. The Bank
take over existing high cost loans at competitive terms resulting in huge savings and is quick in
processing due to easy formalities and one time sanction of loans for disbursement over a
period of time.

OFFICE EQUIPMENT LOAN:

Minimum documentation required.
Doorstep Service.
Competitive Interest rates.
Flexible repayment structure.
Hassle-free application process with the click of a mouse.
Details on your application status online.

MEDICAL EQUIPMENT LOAN:

Professional doctors are aware of the distinct advantages that the latest medical equipment
can give their patients. ICICI Bank Medical Equipment Loans supports professionals in their
effort to give the best to their patients. It's our humble way of being involved in a noble
profession.
Loans are offered for:

Purchase of New equipments.

Takeover of Existing loans.

Our Key features are:

79

Doorstep Service.

Funding in more than 150 locations across the country.

The bank provides Competitive interest rates.

ICICI also offers flexible repayment structure.

LOAN AGAINST SECURITIES

Loans against Securities enables customers to obtain loans against their securities. So they get
instant liquidity without having to sell their securities.
All customers have to do is pledge your securities in favour of ICICI Bank The Bank will then
grant them an overdraft facility upto a value determined on the basis of the securities pledged
by them. A current account will be opened and customer can withdraw money as and when they
require. Interest will be charged only on the amount withdrawn and for the time span utilised.
ICICI offer loans against:

Demat Shares

RBI Relief Bonds

Mutual Funds Units

India Millennium Deposits (IMDs)

ICICI Bank Bonds

Life Insurance Policies (Single Premium

CREDIT CARDS:
ICICI Bank Credit Cards give you the facility of cash, convenience and
a

range of benefits, anywhere in the world. These benefits range from

life time free cards, Insurance benefits, global emergency assistance
service, discounts, utility payments, travel discounts and much more.

DEBIT CARDS:
The ICICI Bank Debit Card is a revolutionary form of cash that
allows customers to access their bank account around the clock,

80

around the world. The ICICI Bank Debit Card can be used for shopping at more than 100,000
merchants in India and 13 million merchants worldwide.

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.

PRE PAID CARDS:

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

INVESTMENTS
ICICI Bank cares about all
needs.

Along

with

Deposit

products and Loan offerings,

ICICI Bank assists people to
manage their 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

81

Initial Public Offers by Corporate

Investment in "Pure Gold"

Foreign Exchange Services

Senior Citizens Savings Scheme, 2004

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

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.

Investment in ICICI Bank Bonds are eligible for tax rebate under Sec 88 to the full

extent possible.

Bonds are listed on BSE, NSE.

GOI BONDS
8% Savings Bonds (Taxable), 2003.
Low risk.
Reasonable investment tenure.
Nomination facility available.
Cannot be traded in secondary market.
Interest income taxable.

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.

82

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

ICICI Bank helps investor 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.
ICICI Bank helps investors identify an appropriate mix of Mutual Fund schemes for their
portfolio using asset allocation strategies.
Through ICICI Bank investor can invest in various schemes of multiple mutual funds with decent
performance record. investor can take the aid of ICICI Banks 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, investor can invest in
Mutual Funds through following channels.

ICICI Bank Branches

ICICI Bank ATMS

ICICIdirect.com

And provide a dedicated workforce to serve clients.

Before being deputed, our officers complete a comprehensive training program and,
once deputed, they receive thorough instructions in financial planning skills and
techniques

83

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, and CFA
etc.

ICICI keeps the investors updated on the latest happenings in the Mutual Fund industry and the
various financial markets through regular electronic updates (daily & weekly) through Emails.
ICICI also send out a monthly magazine on investments to their customers.

Initial public offerings (IPO)

Investor 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.

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.

CHAPTER 3

84

3.1 INTRODUCTION OF CUSTOMER SATISFACTION

Customer satisfaction refers to the extent to which customers are happy with the products and
services provided by a business.
Customer satisfaction levels can be measured using survey techniques and questionnaires

DEFINITIONS:

85

Definition 1: Customer satisfaction is equivalent to making sure that product and service
performance meets customer expectations.
Definition 2: Customer satisfaction is the perception of the customer that the outcome of a
business transaction is equal to or greater than his/her expectation.
Definition 3: Customer satisfaction occurs when acquisition of products and/or services
provides a minimum negative departure from expectations when compared with other
acquisitions.
Gaining high levels of customer satisfaction is very important to a business because
satisfaction customers are most likely to be loyal and to make repeat orders and to use a wide
range of services offered by a business
There are many factors which lead in high levels of customer satisfaction including.
Products and services which are customer focused and hence provide high levels of value for
money.
What is clear about customer satisfaction is that customers are most likely to appreciate
the goods and services that they buy if they are made to feel special. This occurs when they feel
that the products and services that they buy have been specially produced for them or for
people like them.

BENEFITS OF CUSTOMER SATISFACTION

The importance of customer satisfaction and support is increasingly becoming a vital
business issue as organization realize the benefits of Customer Relationship Management
(CRM) for providing effective customer service. Professionals working within customer-focused
business or those running call centers or help desks, need to keep informed about the latest
customer satisfaction techniques for running a valuable customer service function. From small
customer service departments to large call centers, the importance of developing a valued
relationship with customers using CRM is essential to support customer and long-term business
growth.
What Do Customers Want?

86

Before we begin to create tools to measure the level of satisfaction, it is important to develop a
clear understanding of what exactly the customer wants. We need to know what our customers
expect from the products and services we provide.
Customer expectations have two types
Expressed
Implied
Expressed Customer Expectations are those requirements that are written down n the contract
and agreed upon by both parties for example, product specifications and delivery requirements.
Suppliers performance against these requirements is most of the items directly measurable.
Implied Customer Expectations are not written or spoken but are the ones the customer would
expect the supplier to meet nevertheless. For example, a customer would expect the service
representative who calls on him to be knowledgeable and competent to solve a problem on the
spot.
There are many reasons why customer expectations are likely to change overtime. Process
improvements, advent of new technology, changes in customers priorities, improved quality of
service provided by competitors are just a few examples.
The customer is always right. Suppliers job is to provide the customer what he/she wants, when
he/she wants it. Customer satisfaction is customers perception that a supplier has met or
exceeded their expectations.

WHAT CONSTITUTES SATISFACTION?

We cannot create customer satisfaction just by meeting customers requirements fully
because these have to be met in any case. However failing short is certain to create
dissatisfaction
Major Attributes of customer satisfaction in banking industry can be summarized as:

87

 Product quality
Premium Outflow
Return on Investment
Services
Responsiveness and ability to resolve complaints and reject reports.
Overall communication, accessibility and attitude.
WHAT ARE THE TOOLS?
Customer expectations can be identified using various methods such as:
Periodic contract reviews
Market research
Telephonic interviews
Personal visits
Warranty records
Informal discussions
Satisfaction surveys
Depending upon the customer base and available resources, we can choose a method that
is most effective in measuring the customers perceptions. The purpose of the exercise is to
identify priorities for improvements. We must develop a method or combination of methods that
helps to continually improve service.

CUSTOMER SATISFACTION SURVEYS

Formal survey has emerged as by far the best method of periodically the customer
satisfaction. The survey are not marketing tools but an informationgaining tool. Enough
homework needs to be before embarking on the actual survey. This includes:
Defining Objectives of the Survey
Design Survey approach
Develop questionnaires and forms
Administer Survey (Email, Telephone or Post)

88

 Method of compiling data and analyzing the findings

Format of the report to present the findings
There is no point in asking irrelevant questions on a customer satisfaction questionnaire.
The basic purpose is to find out what we are doing right or wrong. Where is the scope for
improvement, where do we stand vis--vis other suppliers. How we can serve the customer
better?
A customer satisfaction measurement survey should at least identify the following
objectives:
Importance to customers (Customers priorities)
Customers perception of suppliers performance
Your performance relative to customers priorities.
Priorities for improvement
Survey forms should be easy to fill out with minimum amount of time and efforts on
customers part. They should be designed to actively encourage the customer to complete the
questions. Yet they must provide accurate data should also be sufficiently reliable for
management decision making. This can be achieved by incorporating objective type questions
where customer has to rate on scale of say 1 to 10. For repeated surveys, you could provide
the rating that was previously accorded by the customer. This works like a reference point for
the customer.
Space should always be provided for the customers own opinions this enables them to
state any additional requirements or report any shortcomings that are not covered by the
objective questions.
Normally, we deal various personnel at various levels in the customers organization
the buyer, user, receiving inspector, finance and purchase person etc. surveying a number of
respondents for each customer gives a complete perspective of customer satisfaction. It may be
necessary to device a different questionnaire for each of them.
Respondents must be provided a way to express the importance they attach to various
survey parameters. Respondents should be asked to give a weighting factor, again on a rating

89

scale of say, 1 to 10, for each requirement. This gives a better indication of relative importance
of each parameter towards overall customer satisfaction and makes it easier for suppliers to
prioritize their action plans by comparing the performance rating (scores) with importance rating
(weighing).

3.2 Objective of Customer Satisfaction Survey

The following are all compelling reasons to survey your customers:

Demonstrate commitment to listening to customers.

Enhance profits.

Gain feedback from customers about products, services, and/or support, outside of what
customers provide the sales force.

Improve customer satisfaction and retention.

Improve quality of service.

Increase market share.

Increase repeat business.

Customer loyalty

Effective communication

Spotting trends

Learn where the company stands in comparison with competitors.

Measure and compensate the sales organization.

Obtain information on product developments, priorities, and requirements.

Obtain input on new products or services.

Provide a way for unhappy customers to vent.

Target resources on issues of concern to customers.

Measuring customer satisfaction

90

Organizations need into retain existing customers while targeting non-customers. Measuring
customer satisfaction provides an indication of how successful the organization is at providing
products and/or services to the marketplace.
Customer satisfaction is measured at the individual level, but it is almost always reported at an
aggregate level. It can be, and often is, measured along various dimensions. A hotel, for
example, might ask customers to rate their experience with its front desk and check-in service,
with the room, with the amenities in the room, with the restaurants, and so on. Additionally, in a
holistic sense, the hotel might ask about overall satisfaction with your stay
As research on consumption experiences grows, evidence suggests that consumers purchase
goods and services for a combination of two types of benefits: hedonic and utilitarian. Hedonic
benefits are associated with the sensory and experiential attributes of the product. Utilitarian
benefits of a product are associated
Customer satisfaction is the overall impression of customer about the supplier and the products
and services delivered by the supplier.

Factors that could affect customer satisfaction:

Department wise capability of the supplier.

Technological and engineering or re-engineering aspects of products and services.

Type and quality of response provided by the supplier.

Suppliers capability to commit on deadlines and how efficiently they are met.

Customer service provided by the supplier.

Complaint management.

Cost, quality, performance and efficiency of the product.

Suppliers personal facets like etiquettes and friendliness.

Suppliers ability to manage whole customer life cycle.

Compatible and hassle free functions and operations.

91

How to develop and improve Customer Satisfaction

Over the last few decades companies have increasingly begun to realize the importance of
customer satisfaction. Where trading environments have become saturated and customers
increasingly hard to come by, customer retention has become imperative. Business has
concluded that customer satisfaction can therefore deliver financial benefit providing stability
and a platform for growth, the alternative is a dissatisfied customer who seldom expresses their
complaints they simply buy elsewhere.
Customer Satisfaction can be analyzed, measured and improved, the tools and methods
required to build and improve it are wide and varied, however there is consensus over the
basics of a toolkit of processes and polices that business can exploit as they aim to build
customer satisfaction.
1/ Assess the customers needs
Aligning product and service offerings with customer needs can only be achieved when
sufficient knowledge of customer requirements has been captured. Accurately understanding
the customers needs is the most important step towards achieving customer satisfaction.
Its worth pointing out that needs are often comprised of a mixture of both product and service
offerings for example supermarket customers may be influenced over price and availability
of products whilst also being influenced by how long they have to queue at the checkout.
There are a variety of methods for assessing customer needs from modeling and statistical
techniques to more standard assessment methods such as observing and questioning current
and prospective customers. Assessment often takes the form of market analysis, buying trends
and behaviors and determining factors that influence the customer.
Needs assessment is an ongoing process and has various guises from questionnaires to
workshops to complaints management. Fundamentally the customer is best placed to convey
their needs and businesses should incorporate an appropriate strategy to track these.

92

2/ Ownership by Senior Management and involvement of the whole organization

Once the customers needs have been captured they should be championed by the whole
organization. To succeed customer satisfaction should be incorporated as a corporate strategy
which should be supported from the senior management downwards. For the strategy to
succeed the voice of the customer needs to reach those at the very top of the organization and
the VP or Management Director must champion the customers requirements and ensure that
the business is shaped and resourced to deliver.
However, it doesnt just stop with senior management, the whole organization needs to
understand the requirements of their customers and the role they have to play in satisfying
them. Involvement will usually mean more than a crudely drawn up corporate values such as
partnership or customer focused but staff will be tuned to requirements, be involved in their
delivery and be acutely aware of the impact on service levels. The whole business, including
those in senior positions should be able to talk fluently and accurately regarding the levels of
satisfaction within its customer base together with engaging and participating in improvement
programs.

A tuned organization will target staff development to support a customer orientated

strategy. Many organizations also link financial rewards with customer satisfaction
performance while this can be fruitful, businesses should ensure that incentives need
to be placed correctly to deliver appropriate results.

93

CHAPTER 4

94

CONSUMER RESEARCH IN DIFFERENT DISCIPLINES

A considerable body of literature exists on consumption, consumer behaviour and consumer
decision making process.
Most of the consumer research focused on adopter categories, habits, attitudes and intentions
rather that on actually measuring the satisfaction level with the service.

CONSUMER SATISFACTION PROCESS

The paramount goal of marketing is to understand the customer and to influence buying
behaviour.
The process can be depicted as follows: Need recognition- realization of the difference between the desired and the current
situation that serves as a trigger for entire process.
Search for information.
Pre purchase alternative evaluation.
Consumption(utilization of the procured option)
Post purchase alternative re-evaluation.
Divestment(disposal of the unconsumed product and its remnants)

COMPANYS EFFORT TO ENSURE SATISFACTION OF CUSTOMERS:

Objectives of ICICI
Promote good and fair banking practices by setting minimum standards in
dealing with you

95

Increase transparency so that you can have a better understanding of what you
can reasonably expect of the services;
Encourage market forces, through competition, to achieve higher operating
standards;
Promote a fair and cordial relationship between you and your bank;
Foster confidence in the banking system

To Help You To Understand How Our Financial Products And Services Work By:
Giving you information about them in any one or more of the following languages: Hindi,
English or the appropriate local language.
Ensuring that our advertising and promotional literature is clear and not misleading
Ensuring that you are given clear information about our products and services, the terms
and conditions and the interest rates/service charges, which apply to them.
Giving you information on what are the benefits to you, how you can avail of the benefits,
what are their financial implications and whom you can contact for addressing you
queries.

To Help You Use Your Account Or Service By:

Providing you regular appropriate updates.
Keeping you informed about changes in the interest rates, charges or terms and
conditions.

Information
You can get information on interest rates, common fees and charges through any one of the
following:
Looking at the notices in our branches ;
Phoning our branches or help-lines;
Looking on our website;
Asking our designated staff/help desk ;or
Referring to the service guide/Tariff Schedule.

Before You Become a Customer we will:

96

give you clear information explaining the key features of the services and products you
tell us you are interested in;
give you information on any type of products and services which we offer and that may
suit your needs;
tell you if we offer products and services in more than one way [for example, through
ATMs, on the Internet, over the phone, in branches and so on] and tell you how to find
out more about them;
tell you what information we need from you to prove your identity and address, for us to
comply with legal, regulatory and internal policy requirements

Advertising, Marketing and Sales

We will make sure that all advertising and promotional material is clear, and not
misleading.
In any advertising in any media and promotional literature that draws attention to
banking service or product and includes a reference to an interest rate, we will also
indicate whether other fees and charges will apply and that full details of the relevant
terms and conditions are available on request.
If we avail of the services of third parties for providing support services, we will require
that such third parties handle your personal information (if any available to such third
parties) with the same degree of confidentiality and security as we would.
We may, from time to time, communicate to you various features of our products availed
by you. Information about our other products or promotional offers in respect of our
products/services, will be conveyed to you only if you have given your consent to receive
such information/ service either by mail or by registering for the same on our website or
on our phone banking/customer service number.
We have prescribed a code of conduct for our Direct Selling Agencies (DSAs) whose
services we may avail to market our products/ services which amongst other matters

97

requires them to identify themselves when they approach you for selling our products
personally or through phone.
In the event of receipt of any complaint from you that our representative/courier or DSA
has engaged in any improper conduct or acted in violation of this Code, we shall take
appropriate steps to investigate and to handle the complaint and to make good the loss.

98

CHAPTER 5

99

RESEARCH METHODOLOGY
INTRODUCTION
Research in common parlance refers to a search for knowledge. One can also define
research as a scientific and systematic search for pertinent information on a specific
topic. In fact, research is an art of scientific investigation. Research is a systematized
effort to gain new knowledge
Research is an original contribution to the existing knowledge for its advancement. It is
the pursuit of truth with the help of study, observation, comparison and experiment. In
short knowledge through objective and systematic method of finding solution to a
problem is research. Research refers to the systematic method consisting of
enunciating the problem, formulating the hypothesis, collection of the facts.

Title of the Study

A Study on Customer Satisfaction In Indian Retail Banking With Special
Reference Of ICICI Bank

Objective of the Study

Each research study has its own specific purpose. It is like to discover to Question
through the application of scientific procedure. But the main aim of our research to find
out the truth that is hidden and which has not been discovered as yet. My research
study has following objectives:
To Measure The Level of Satisfaction of Retail Banking Customers.
To identify the factors which affect the customer satisfaction

level

in retail banks.
To study about the competitive position of ICICI Bank in Competitive Market.
To Study the customers attitude towards the financial products of the ICICI Bank.
To Study the customers opinion towards the services provided by the ICICI Bank.
To study about the effectiveness & efficiency of ICICI Bank in relation to its
competitors.
100

To study about whether people are satisfied with ICICI Bank Services &
Management System or not.

Type of Research:Descriptive Research: Descriptive research includes fact finding enquiries of different
kinds. The major purpose of descriptive research is description of the state of affairs as
it exists at present. Researcher has no control over the variables of this type of
research. The methodology of the study is based on primary &secondary data.

Data Collection:
Primary Data: Data is collected primarily through personal contact, meeting, interview
and questionnaire with the concerned authority of the ICICI Bank and respondents.
Secondary Data:
Secondary data was collected by gathering information from concerned personnel at
these firms and the rest was collected from the various journals and websites.

Sample Size & Method Of Selecting Sample:The sampling method so as to obtain a representative sample is the Non-probability
sampling methods. Under Non-probability sampling, the question addressed the basic
questions relating to the level of satisfaction with in customers.
A random sample of 25 people was taken. I selected the respondents to the survey on
the basis of judgment sampling with convenience taken into account.

Scope of the study:

The study is specific only to retail banking in India.

Understand different facilities provided by the bank to the customers.
To do the careful study of steps which bank takes to attract the customers.
To study how bank are working for the development of the population and the economy.

101

The study is also useful to the bank to formulate a systematic structure for providing

facilities to the customers.

It informs customers about banks progressive attitude towards customers.
Understand the overall performance and progress of the bank.
The study also relates To Customer Satisfaction and Its Related Factors. The factors

studied are:
Service provided by the bank.
The Image or Personality of the Bank.
Convenience Provided To The Customers.
Pricing policies of the bank.
Maintenance Of Relationship With The Customers

Limitations of the Study: The overall data collected through one branch of the bank that is Vidhyadhar Nagar

Branch Jaipur. Therefore it makes some limitations to collect the data and analyze.
A customers satisfaction towards the Branch is considered for study, hence the

structure; other concepts of the banks are excluded for the detail study.
The study is on the information collected from bank, during very short period of the case
study work. So only limited data is collected and no detailed study about case is carried

out.
The study considered only the customers satisfaction, so other concepts of the banks
are excluded.

CHAPTER 6

102

FINDINGS
From the details of the study, we can enumerate the observation of the project report i. e.
customers satisfaction towards the ICICI Bank, Jaipur in the form of finding as below.
1. It was found from the study that bank believes in quality service rather than quantity of
service.

103

2. The officials employed are very much enthusiastic about their job.
3. The officials try to make best relation with the customers.
4. There is separate counter for NRI services.
5. The registers and files are maintained on a daily basis.
6. The registers are maintained in a well organized manner.
7. The marketing strategy of the bank is very attractive.
8. The bank always tries to attract customers with innovative offers.
9. Both the bank investment deposit ratio is on the declining trend
10. Both the banks has shown better utilization of cash portfolio
11. ICICI bank Interest expenses to interest earned remains the same Over 2 Years whereas
SBI shows reduction.
12. Other Income ratio remains fluctuation in both the banks.

CHAPTER 7

104

Data Analysis & Interpretation

Chart-1 Customer have Account with ICICI Bank

105

As the above graph shows that most of the customers i.e. 50% having saving
account in ICICI Bank & 25% customers having current account, 20% loan
account & 5% having other account in ICICI bank.

Chart-2 Attributes compelled by the customers to open saving account in

any bank

106

As with above analysis, it is found that 37% customers give more preference to ATM
facilities provided by bank at the time of opening a saving account in a bank and rest of
the 63% customers give preference to working hours, Cheque book, Internet banking &
value added services.

Chart-3 Customers having Bank Account With ICICI Bank From how many
years

107

As with above analysis, it is found that most of the customers having bank account in
ICICI bank since last 1 to 5 years.

108

Chart-4 Reason for preference of ICICI Bank

As with above analysis, it is found that most of the customers prefer the ICICI bank
because of its better quality & services and 30% customer prefer for quick transaction
and 20% customers prefer for more support to customers.

109

Chart-5 Medium for customer awareness about the services provided by

ICICI Bank

The above chart shows that 36% customers know about the services provided by the
bank through advertisement and 29% customers through friends & relatives, 21%
customers through selling agent and 14% customers through other sources.

110

Chart-6 Thinking of the people about the Banks

The above chart shows that most of the customers think bank as a security providing
organization and 33% customers think as a saving option, 11% customers think as
imposition of a burden of expenses and 7% customers think others.

111

Chart-7 Suitability of processing of loan for the customers

IF NO>..WHY?
(1) TAKING LONGER TIME PERIOD
(2) DOCMENTATION COMPLEXITY
(3) VERIFICTION

With the above analysis, it is found that 60% customers feel suitability with the
processing of loan and 30% customers feel unsuitability & 10% cant say about this.

112

Chart-8 Opinion of the customers about the processing charges of loan

The above chart shows that 50% customers says that processing charges of loan are
medium and 30% customers says that processing charges of loan are high & 20%
customers says low.

113

Chart-9 Type of loan Preferred by the customers of ICICI Bank

The above chart shows that 70% customers prefer housing loan and 20% customers
prefer car loan, 8% customers prefer education loan and 2% customers prefer personal
loan.

114

Chart-10 Customers Opinion about the interest rate charged on loan by the
ICICI bank

The above chart shows that 40% customers say that interest rate charged on loan by
ICICI bank is average and 30% customers say high, 30% customers say low with
compare to another banks.

115

Chart-11 Internet banking Services availed by the customers of ICICI Bank

As with above analysis, it is found that most of the customers doesnt use internet
banking services due to lack of awareness, connectivity problems & more complexity
and only 30% customers using internet banking services of ICICI bank.

116

(IN CASE OF NO)

Chart-12 Reasons for not using Internet banking Service by the customers

As with above analysis, it is found that those customers who doesnt use internet
banking services most of them doesnt know about internet banking services and 35%
doesnt use due to connectivity problem & 25% customers doesnt use internet banking
services due to more complexity.

117

Chart-13 Customer opinion towards the financial services provided by the

ICICI Bank

The above chart shows that 40% customers give good to the financial services provided
by the ICICI bank and 30% customers give very good, 20% customers give excellent &
10% customers give average to the financial services provided by the ICICI bank.

118

Chart-14 Level of Customer satisfaction towards the services provided by ICICI

Bank

As with above analysis, it is found that 34% customers are satisfied with the services
provided by the ICICI bank and 12% customers are extremely satisfied, 20% customers
at moderate level, 20% customers are dissatisfied and 8% customers are extremely
dissatisfied with the services provided by the ICICI bank.

119

CHAPTER 8

SWOT ANALYSIS
120

STRENGTHS

All the branches are interconnected which give the unique facility of anywhere banking.

Branches of ICICI Bank are well equipped with advanced technology to provide the customers
with taster banking services

All operations of the bank are carried on with the help of computers thus transaction are
carried with greater efficiency.

ATM +Debit card facility.

High number of executives which make the work of customers very convenient.

The withdrawal limit provided by the bank is 40000 per day through ATM & 100000
through cheque per day.

Maximum customer base in Jaipur as compared to any of the bank.

121

WEAKNESS

Less awareness among general masses about the different services provided by the
bank.

High bank service charges.

Peoples faith in private banks is still not very high.

Provide less credit period.

Minimum balance level of all the accounts are very high.

122

OPPORTUNITIES

Peoples dissatisfaction towards nationalized banks in terms of services has turned to

be blessing for private banks.

Among the private players ICICI bank have the excellent brand image.

There lies a great scope in Forex department which is unutilized to a greater extent can
yield much better results by which the bank can increase its volume.

Special services can be provided to women as the womens role is becoming

prominent.

The trust of people is increasing on the banks rather than going for financial institution.

There is vast untapped opportunity which lies for every bank in the rural area.

Recruit professionally qualified students

123

THREATS

Reorganization of PSUs. All the PSUs have started to redefine their services to attract
customers attention.

A few foreign banks have been permitted to increase their number branches and its
entry has taken away some business of the existing banks.

Stringent norms by RBI in any time in future can be a threat to private banks as their
activities can be adversely affected.

Stiff Competition

No proper facility for uneducated customers

124

CHAPTER 9

Conclusion
125

Thus, ICICI has been able to use technology to provide value-added service to its customers
during the last few years. For ICICI, technology is an integral part of their business. However,
their overall progress could have been smoother but for certain internal and extraneous factors
and also a pressure on spread due to a competitive market (Annual report, 2010 11). Ebanking has become a necessary survival weapon and is fundamentally changing the banking
industry worldwide. Today, the click of the mouse offers customers banking services at a much
lower cost and also empowers them with unprecedented freedom in choosing vendors for their
financial service needs. No country today has a choice- whether to implement E-banking or not
given the global and competitive nature of the economy. ICICI have top grade and constantly
think of new innovative customized packages and services to remain competitive. The invasion
of banking by technology has created an information age and commoditization of banking
services. ICICI have come to realize that survival in the new e-economy depends on delivering
some or all of their banking services on the Internet while continuing to support their traditional
infrastructure. The rise of E-banking is redefining business relationships and the most
successful banks will be those that can truly strengthen their relationship with their customers.
Without any doubt, the international scope of E-banking provides new growth perspectives and
Internet business is a catalyst for new technologies and new business processes.

126

CHAPTER 10

127

SUGGESTIONS
1. The company should adopt best marketing strategy to expansion the market.
2. To increases its branches.
3. To increases more activity rather than banking system.
4. To make good relationship with its customer.
5. To make effort for increasing the awareness about the internet banking among the customers
6. To reduces the interest rate of loan process.
7. To reduces the minimum amount of maintaining the account.

128

CHAPTER 11

129

Confidential Questionnaire
Dear SIR/MADAM, I am conducting survey on ICICI. I shall be very thankful to give your
few minutes to me for answering my few questions below.

NAME
MARITAL STATUS

AGE
OCCUPATION.

EDUCATIONAL QUALIFICATION.

1. What type of account do you have in ICICI Bank?

(a) Current

(b) Saving

(c)Loan

(d)Others

2. Which of the following attributes compelled you to most open saving account in any bank?
(a) ATM

(b) Cheque book

(c) Internet Banking

(d) Working hours

(e) value added services

3. For the past how many years you have account with ICICI bank?
(a) Less than 1 year

(b) 1-5 years

(c) More than 5 years

4. Why do you prefer ICICI bank?

(a) Quality and services

(b) Quick transaction

(C)Support to customer

5. How would you know about the services provided by the ICICI Bank?
(a) Through selling agent (b) Through friends & relatives

(c) Through advertisement

(d) Others

6. What the Peoples think about the banks?

(a) Security

(b) Saving

(c) Imposition of a burden of expenses

(d) Others

7. The process of loan is suitable to you?

(a) Yes

(b) No

If no .Why

130

(a) Taking longer period of time

(b) Documentation Complexity
(c) Verification
8. What is your opinion about the processing charges of loan?
(a) Low

(b) Medium

(c) High

9. Which kind of loan do you prefer?

(a) Housing loan

(b) Personal loan

(c) Car loan

(d) Education loan

10. What is your opinion about the interest rate charged on loan by the ICICI bank?
(a) Low

(b) Medium

(c) High

11. Do you avail internet banking?

(a) Yes

(b) No

12. In case of no, Why are you not using internet banking
(a) Lack of awareness

(b) Connectivity problem

(c) More complex for use

13. What do you feel about overall services of ICICI bank?

(a) Excellent

(b) Very good

(c) Good

(d) Average

14. Would you like any recommendation to ICICI Bank?

..

131

CHAPTER 11

132

BIBLIOGRAPHY
BOOKS:

Kothari C. R.: Research Methodology=methods and techniques.

Kotler Phillip: Marketing Management Eleventh revised edition, 2008..

Khan, M Y , Financial services, Tata McGraw-Hill, New Delhi 2010.

Khan, M Y ,Indian Financial system, Tata McGraw-Hill, New Delhi 2010

WEBLIOGRAPHY

Http://www.icicibank.com
http://finance.indiamart.com/investment_in_india/banking_in_india.html
http://finance.indiamart.com/investment_in_india/nationalisation_banks.html
http://en.wikipedia.org/wiki/banking_in_india
http://en.wikipedia.org/wiki/bank
http://moneycentral.msn.com/banking/services/home.asp
Http://catalogs.indiamart.com/services/banking-services.html

NEWS PAPAERS
Times of India
Economic Times
Business today

133

134