INDIRA INSTITUTE OF

MANAGEMENT
PUNE

Industry Research

Report on :
ICICI BANK

Report By: Banti Gupta

Division- Finance B Roll no-13
Industry Research ICICI Bank 25-10-2021

SR Particulars Page.
NO
1 Introduction 2

2 Competitive forces impacting their Business 4

3 Products 8

4 Management 10

5 Strategic Focus Area 11

6 Revenue 14

7 Presence in the country and internationally 15

8 Competitors 16

9 Job Roles and Positions Offered 17

10 Partners 18

11 Awards & Accolades 19

12 Work Environment 21

13 References 23

INDEX

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Industry Research ICICI Bank 25-10-2021

Introduction

History and Overview :

ICICI Bank was established by the Industrial Credit and Investment

Corporation of India (ICICI), an Indian financial institution, as a wholly
owned subsidiary in 1994 in Vadodara however the parent company was
formed in 1955 as a joint venture of the World Bank, India's public-sector banks
and public-sector insurance companies to provide project financing to Indian
industry. The bank was founded as the Industrial Credit and Investment
Corporation of India Bank, before it changed its name to ICICI Bank. The
parent company was later merged with the bank. The Industrial Credit and
Investment Corporation of India (ICICI) was established on 5 January 1955 and
Sir Arcot Ramasamy Mudaliar was elected as the first Chairman of ICICI Ltd.

ICICI Bank launched Internet Banking operations in 1998.

ICICI's shareholding in ICICI Bank was reduced to 46% through a public

offering of shares in India in 1998, followed by an equity offering in the form
of American depositary receipts on the NYSE in 2000. ICICI Bank acquired
the Bank of Madura Limited in an all-stock deal in 2001 and sold additional
stakes to institutional investors during 2001–02.

In the 1990s, ICICI transformed its business from a development financial

institution offering only project finance to a diversified financial services group,
offering a wide variety of products and services, both directly and through a
number of subsidiaries and affiliates like ICICI Bank. In 1999, ICICI become

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Industry Research ICICI Bank 25-10-2021

the first Indian company and the first bank or a financial institution from non-
Japan Asia to be listed on the NYSE.

ICICI, ICICI Bank, and ICICI subsidiaries ICICI Personal Financial Services
Limited and ICICI Capital Services Limited merged in a reverse merger in
2002.

During the financial crisis of 2007–2008, customers rushed to ICICI ATMs and

branches in some locations due to rumours of bank failure. The Reserve Bank of
India issued a clarification on the financial strength of ICICI Bank to dispel the
rumours.

In March 2020, the board of ICICI Bank Ltd. approved an investment of Rs

1,000 crore in Yes Bank, resulting in a 5% ownership interest in Yes.

ICICI Bank is a leading private sector bank in India.

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Industry Research ICICI Bank 25-10-2021

Competitive forces impacting their business:

1) Threat of New Entrants:

Despite the regulatory and capital requirements of starting a new bank, between
1977 and 2002 an average of 215 new banks opened each year according to the
FDIC. With so many new banks entering the market each year the threat of new
entrants should be extremely high. However, due to mergers and bank failures
the average number of total banks decreases by roughly 253 a year. A core
reason for this is, what is arguably, the biggest barrier of entry for the banking
industry, trust.

Because the industry deals with other people's money and financial information
new banks find it difficult to start up. Due to the nature of the industry people
are more willing to place their trust in big name, well known, major banks who
they consider to be trustworthy.

The banking industry has undergone a consolidation in which major banks seek
to serve all of a customer’s financial needs under their roof (this can clearly be
seen in the business model of banks like Wells Fargo's). This consolidation
furthers the role of trust as a barrier to entry for new banks looking to compete

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Industry Research ICICI Bank 25-10-2021

with major banks, as consumer are more likely to allow one bank to hold all
their accounts and service their financial needs.

Ultimately the barriers to entry are relatively low for the banking industry.
While it is nearly impossible for new banks to enter the industry offering the
trust and full range of services as a major bank, it is fairly easy to open up a
smaller bank operating on the regional level.

2) Bargaining Power of Suppliers:

Capital is the primary resource on any bank and there are four major suppliers
(various other suppliers [like fees] contribute to a lesser degree) of capital in the
industry.

1) Customer deposits. 2) mortgages and loans. 3) mortgage-backed securities. 4)

loans from other financial institutions.

By utilizing these four major suppliers, the bank can be sure that they have the
necessary resources required to service their customers' borrowing needs while
maintaining enough capital to meet withdrawal expectations.

The power of the suppliers is largely based on the market, their power is often
considered to fluctuate between medium to high.

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Industry Research ICICI Bank 25-10-2021

3) Bargaining Power of Buyers:

The individual doesn't pose much of a threat to the banking industry, but one
major factor affecting the power of buyers is relatively high switching costs. If a
person has one bank that services their banking needs, mortgage, savings,
checking, etc, it can be a huge hassle for that person to switch to another bank.

To try and convince customers to switch to their bank they will often times
lower the price of switching, though most people still prefer to stick with their
current bank.

The internet has greatly increased the power of the consumer in the banking
industry. The internet has greatly increased the ease and reduced the cost for
consumers to compare the prices of opening/holding accounts as well as the
rates offered at various banks.

ING Direct introduced high yield savings accounts to catch the buyers'
attention, then they went a step further and made it very easy for customers to
transfer their money from their current bank to ING. ING was successful in
their attempt because they managed to make switching costs very low in terms
of time and capital.

4) Availability of Substitutes:

Some of the banking industry's largest threats of substitution are not from rival
banks but from non-financial competitors.

The industry does not suffer any real threat of substitutes as far as deposits or
withdrawals; however, insurances, mutual funds, and fixed income securities

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Industry Research ICICI Bank 25-10-2021

are some of the many banking services that are also offered by non-banking
companies.

There are also the threat of payment method substitutes and loans are relatively
high for the industry. For example, big name electronics, jewellers, car dealers,
and more tend to offer preferred financing on "big ticket" items. Often times
these non-banking companies offer a lower interest rate on payments then the
consumer would otherwise get from a traditional bank loan.

5) Competitive Rivalry:

The banking industry is considered highly competitive. The financial services

industry has been around for hundreds of years, and just about everyone who
needs banking services already has them. Because of this, banks must attempt to
lure clients away from competitor banks. They do this by offering lower
financing, higher rates, investment services, and greater conveniences than their
rivals. The banking competition is often a race to determine which bank can
offer both the best and fastest services but has caused banks to experience a
lower ROA (Return on Assets). Given the nature of the industry it is more
likely to see further consolidation in the banking industry. Major banks tend to
prefer to acquire or merge with other banks than to spend money marketing and
advertising.

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Industry Research ICICI Bank 25-10-2021

Products:

 Banking
 Commodities
 credit cards
 equities trading
 insurance
 investment management
 mortgage loans
 mutual funds
 private equity
 risk management
 wealth management
 asset management.

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Industry Research ICICI Bank 25-10-2021

Flagship Products:

 Wealth - Wealth Management Advantage, Wealth Select, Your life

stages.
 Cards -Credit Card, Debit Card, Forex Prepaid Cards.
 Loan - Popular Loans, Commercial Business Loans, Insta Loans.
 Investments – Deposits, Grow, Recurring Deposit (RD) .
 Insurance – Popular insurance, Social Security Schemes, Life Insurance.
 Payments - Money Transfer, Utility Payments.

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 Industry Research ICICI Bank 25-10-2021

Management:

Sandeep Bakhshi
Managing Director
& CEO

Anup Bagchi Sandeep Vishakha

Batra Mulye
Executive
Director Executive Executive
Director Director

Mr. Uday Ms. Rama

Chitale Bijapurkar
Independent Independent
Director Director

Strategic Focus Area for Business:

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Industry Research ICICI Bank 25-10-2021

ICICI Bank has focused on being a future-ready organization and has

consistently evolved its capabilities to ensure agility and value creation in its
businesses. This focus is integral to the Bank’s strategy and underscores the
several pioneering initiatives taken by the Bank.

In fiscal 2019, the Bank continued to make progress on its strategic objectives
even as the year saw significant challenges. The Bank’s businesses focused on
growing the core operating profits in a risk calibrated and granular manner. The
Bank implemented a number of initiatives to expand its customer base and
deepen the penetration of products and services, thus further strengthening the
franchise. The digital strategy was key to driving the Bank’s reach and
unlocking potential in its businesses. ICICI Bank completed 20 years of its
digital banking journey in fiscal 2019 and aims to remain at the forefront in re-
imagining banking through technology, digitization, and innovation.

Meeting customer needs:

The objective of the Bank is to develop products and services that create value
for customers. Technology and digitization play an integral part in meeting this
objective. The Bank focuses on providing high levels of functionality and
investing in technologies to provide a secure, superior, seamless, and uniform
service experience to customers across all channels.

Enhancing customer service:

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Industry Research ICICI Bank 25-10-2021

Customer service is an important pillar of banking, and the Bank makes

continuous efforts towards improving customer experience and operational
efficiency. A rapidly changing economic and technological landscape has
created new dimensions in customer expectations from banks. Speed and
convenience are two key drivers in meeting these expectations. To keep up with
evolving customer expectations, the Bank is increasing its focus on customer
delight and advocacy. This is being measured through the Net Promoter Score,
Transaction Experience and Customer Satisfaction metrics.

The Bank follows a 4D framework to map the entire customer journey across
products, processes, and channels.

Technology at the core:

The Information Technology (IT) Strategy adopted by the Bank is to provide an

integrated, resilient, and responsive technology environment that enables it to
achieve its business goals of risk calibrated granular growth, cost-effectiveness,
and a superior customer experience in a secure and compliant manner. In line
with this strategy, the Bank has adopted the theme of Run, Transform and Re-
Imagine for its digital and technology initiatives to remain at the forefront of
transformation in the Indian banking industry.
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Industry Research ICICI Bank 25-10-2021

Risk calibrated growth:

The Bank is committed to ensuring long-term risk calibrated growth based on

its strategic objectives. The Bank’s performance in fiscal 2019 was aligned to
its focus on pursuing this strategy based on opportunities and its risk appetite.
The growth was supported by strong risk management practices leading to
further reduction in concentration and improvement in the rating composition of
the portfolio. The Bank’s rating mix of disbursements has changed significantly.
Over 90% of the disbursements in fiscal 2019 in the domestic and international
portfolio were to corporates rated A- and above.

Key product launches:

In fiscal 2019, ICICI Bank extended its range of instant products by introducing
a slew of offerings across segments.

This facility enables lakhs of pre-approved

salaried customers of the Bank to avail final
Insta Home Loan sanction letter digitally and instantly for loans up
to ₹ 10 million for a tenure of up to 30 years
using the Bank’s internet banking facility

Through this first-of-its-kind initiative, the Bank

Insta Top Up on helps its existing home loan customers to get
instant top-up of up to ` 2 million for a tenure of
Home Loan up to 10 years.

The Bank provides its pre-approved customers with

Insta Auto Loan a facility to avail the final sanction letter of a car
loan instantly and digitally up to ` 2 million for a
tenure of up to seven years. This facility offers loan
for 100% of the on-road price of the vehicle.

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Industry Research ICICI Bank 25-10-2021

Revenue of last 5 years:

We can see an increasing trend in the total revenue of ICICI Bank as the
revenue grew significantly over the 5 years from Rs.1133.98 billion in FY 2016
to Rs. 1613.36 billion in FY 2021. This increasing trend can be due to better
Employee Culture , Training and Development and increase in the sale of
products and services to customers by the Bank.

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 Industry Research ICICI Bank 25-10-2021

Presence in the country and internationally :

In India
Bank Name State Bank Name State
Icici Bank Limited (3) Andaman And Nicobar Island Icici Bank Limited (344) Andhra Pradesh
Icici Bank Limited (6) Arunachal Pradesh Icici Bank Limited (74) Assam
Icici Bank Limited (111) Bihar Icici Bank Limited (30) Chandigarh
Icici Bank Limited (72) Chhattisgarh Icici Bank Limited (4) Dadra And Nagar Haveli
Icici Bank Limited (3) Daman And Diu Icici Bank Limited (213) Delhi
Icici Bank Limited (34) Goa Icici Bank Limited (418) Gujarat
Icici Bank Limited (235) Haryana Icici Bank Limited (33) Himachal Pradesh
Icici Bank Limited (46) Jammu And Kashmir Icici Bank Limited (67) Jharkhand
Icici Bank Limited (356) Karnataka Icici Bank Limited (187) Kerala
Icici Bank Limited (268) Madhya Pradesh Icici Bank Limited (890) Maharashtra
Icici Bank Limited (10) Manipur Icici Bank Limited (13) Meghalaya
Icici Bank Limited (4) Mizoram Icici Bank Limited (7) Nagaland
Icici Bank Limited (158) Odisha Icici Bank Limited (6) Puducherry
Icici Bank Limited (276) Punjab Icici Bank Limited (526) Rajasthan
Icici Bank Limited (6) Sikkim Icici Bank Limited (529) Tamil Nadu
Icici Bank Limited (86) Telangana Icici Bank Limited (9) Tripura
Icici Bank Limited (364) Uttar Pradesh Icici Bank Limited (41) Uttarakhand
Icici Bank Limited (259) West Bengal

Internationally

Currently, the Bank has subsidiaries in Canada and the United Kingdom;
branches in Bahrain, China, Dubai International Finance Centre, Hong Kong,
Singapore, South Africa, Sri Lanka, and the United States; and representative
offices in Bangladesh, Indonesia, Malaysia, and the United Arab Emirates. The
Bank’s wholly owned subsidiary ICICI Bank UK Plc has seven branches in the
United Kingdom and a branch in Germany.

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 Industry Research ICICI Bank 25-10-2021

Competitors:

Market cap:
Market cap:
Market cap: $60.05 Billion
$143.12 Billion $57.60 Billion
Share Price:
Share price: Share Price:
1,683.00 INR 502.50 INR
2,172.05 INR
Products: Products:
Products:
Wholesale banking, savings account,
credit cards, fixed Bank, Life
retail banking,
deposits, personal Insurance, Mutual
treasury, auto
loan, home loan, Fund, Car Finance,
loans, two-wheeler
business loan, debit Securities ,
loans, personal
card, loan against Institutional
loans, loans against
property, car loan, Equities, Investment
property,
gold loan, mudra Banking, Kotak
consumer durable
loan Mahindra
loan, lifestyle loan
International.
and credit cards.

Market cap:

$33.44 Billion
Market cap:
Share Price:
$12.39 Billion
817.50 INR
Share Price:
Products:
1,194.90 INR
Accounts ,Deposits , Cards , Loans ,
Forex ,Investments ,Insurance, Products: Accounts, Make Payments , Credit
Fastag, SIP. Card Payment Click Pay Send Money Abroad,
Digital Banking , Apply Online- Savings Account
Personal Loan Vehicle Loans.
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 Industry Research ICICI Bank 25-10-2021

Job Title Function Location Required

Experience
Debt Collections Across India 06-10 yrs.
Manager
Solution Markets Group Chennai, Bangalore ,Pune ,Mumbai, NEW 04- 6 yrs.
Manager - DELHI
Corporate
Market
Group
Phone Operations Guwahati, Chennai ,Indore ,Hyderabad 0 - 4 yrs.
Banking Group ,Thane
Officer
Privilege Retail Banking Across India 04- 8 yrs.
Banker Group
Chartered Retail Banking Across India 0 - 2 yrs.
Accountant Group ,
s Wholesale
Banking
E- Retail Branch Guwahati, Chennai, Indore ,Delhi ,Thane, 0 - 4 yrs.
Relationship Banking Mumbai.
Manager
Job roles and positions offered:

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 Industry Research ICICI Bank 25-10-2021

Partners:

Visa Inc. is an American multinational financial

Zoho Corporation is an Indian multinational
services corporation headquartered in Foster
technology company that makes web-based
City, California, United States. It facilitates
business tools. It is best known for online office
electronic funds transfers throughout the
suite named Zoho. was founded in 1996 by
world, most commonly through Visa-branded
Sridhar Vembu and Tony Thomas and has a
credit cards, debit cards and prepaid cards.
presence in seven locations with its global
Visa is one of the world's most valuable
headquarters in Chennai, Tamil Nadu, India,
companies.
and corporate headquarters in Pleasanton,
California.

Accion Labs is a global services

technology firm focused on Travel Portal Solution an
building and transforming enterprise of (SC
software products through Technologies Pvt. Ltd). A
Greytip Software was emerging technologies. renowned international
founded with the aim of Headquartered in Bridgeville, travel technology
providing relevant and Pennsylvania company, powered by
cost-effective software hundreds of suppliers
solutions in the HR across the world. They
domain to companies are committed to
worldwide. Since 2009, provide innovative
we’ve done that with technologies and easily
greytHR - India’s 1st ever accessible Internet
fully integrated cloud- booking engines
based HR & Payroll
software.

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Industry Research ICICI Bank 25-10-2021

Awards and Accolades:

Awards :

 ICICI Bank has emerged as the winner in six categories, at the Asian
Banking & Finance Awards, 2021. The Bank has won awards for its
Retail Banking initiatives in two categories - 'COVID Management
Initiative of the Year - India' and 'Domestic Retail Bank of the Year -
India'. The Bank's initiatives in Wholesale Banking have bagged awards
in four categories, namely 'India Domestic Trade Finance Bank of the
Year', 'India Domestic Liquidity Management Initiative of the Year',
'India Domestic Foreign Exchange Bank of the Year' and 'India Domestic
COVID Management Initiative of the Year'.
 ICICI Bank has been adjudged the 'Best Retail Bank in India' at ‘The
Asian Banker Excellence in Retail Financial Services International
Awards, 2021’. This is the eighth year in a row that the Bank has won
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Industry Research ICICI Bank 25-10-2021

this award. The Bank has emerged a winner in two other categories
among all Asian banks. They are: 'Best Automobile/Car Loan Product'
and 'Best Digital Customer Ecosystem Initiative/Application'.
 ICICI Bank has been adjudged as the 'Best Private Sector Bank' at the FE
Best Banks Awards 2019-2020. The awards are organized by Financial
Express, part of the Indian Express group, in association with its
knowledge partner EY. ICICI Bank has been recognized as the winner,
on the basis of its scoring on five criteria - strength and soundness, credit
quality, profitability, growth, and efficiency.

Accolades:

ICICI Bank has won multiple accolades at Business Today-KPMG Best Bank
Awards.

 Best in Talent and Workforce Management:

ICICI Bank won this award for digital innovations in talent acquisition and
learning models. The Bank's initiatives like iTravelSafe, travel accompaniment,
Quick Response Teams (QRT) and self-defence training for women employees,
which promote gender diversity, were highly appreciated. Our future ready
workplace initiatives like agile teams, hybrid models of working, removing
grade-based hierarchies along with our innovative people support and people
management practices during the COVID-19 pandemic, were also recognized.

 Best in Fintech Engagement:

The Bank won this award for developing the Connected Banking platform -
Bank Connect 2.0, which offers ICICI Bank customers a host of features for
their daily business banking needs.

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Industry Research ICICI Bank 25-10-2021

Work Environment:

Most of us look for a dynamic work culture. According to the reviews by 15%
employees, ICICI provides a good working culture. Colleagues- A lot of your
professional performance depends on your team and office peer. Nearly 15% of
the employees enjoy working with the office colleagues in ICICI bank. ICICI
Bank is one the largest banks in India. With more than 3000 reviews and a 3.36
rating on JobBuzz, ICICI bank is one employee friendly organization. The
company offers some extra ordinary rewards and benefits to its employees,
making it one of the best places to work.

According to the company ratings on Jobuzz, 65% people voted the bank to be
the best in terms of salary. About 62% employees like the work-life balance it
provides. Nearly 70% candidates enjoy the working culture and approximately
67% have rated it to be good in terms of growth prospects.

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Industry Research ICICI Bank 25-10-2021

Reasons to work with ICICI bank:

 Brand name- Almost 30% employees and ex-employees opted to work

with ICICI bank because of the brand name. Being one of largest private
banks in India, ICICI is known for its achievements.
 Quality of work- For the workaholic millennial today, the quality of
work matters a lot. Nearly 20% employees and ex-employees have
positively reviewed the bank on the quality of work.
 Work environment- Most of us look for a dynamic work culture.
According to the reviews by 15% employees, ICICI provides a good
working culture.
 Colleagues- A lot of your professional performance depends on your
team and office peer. Nearly 15% of the employees enjoy working with
the office colleagues in ICICI bank.
 Training and Development- With the technology advancing on each
passing day. It’s important for us to be updated with every working
technique. Approximately 15% of employees find the bank to be a better
place for training and development.

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Industry Research ICICI Bank 25-10-2021

References:

https://www.icicibank.com
https://wikipedia.com
https://www.partnerbase.com
https://google.com
https://www.icicibank.com/aboutus/Annual-Reports/

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