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A report on icici bank

  1. 1. 0 SHRI RAM MURTI SMARAK COLLEGE OF ENGG. & TECH, BAREILLY - 243202 A REPORT ON ICICI BANK SUBMITTED BY DAKSH BHATNAGAR MBA – 4th Semester ROLL NO. - 1201470010 Faculty of Management Science Shri Ram MurtiSmarak College of Engineering & Technology, Bareilly (014)
  2. 2. A REPORT ON ICICI BANK DAKSH BHATNAGAR 1 DECLARATION This is to declare that Mr. Daksh Bhatnagar, a student of MBA 4th Semester (Batch 2012-14), has compiled this report after going through some articles available on the internet. No plagiarism was done while compiling this report Also, this report is correct to the best of my knowledge and beliefs. In case anything incorrect is found in this report, I shall be the one responsible for the mistake.
  3. 3. A REPORT ON ICICI BANK DAKSH BHATNAGAR 2 ACKNOWLEDGEMENT I, Daksh Bhatnagar, student of MBA IVth Semester, sincerely thank Mr. DevMurti, the Chairman of esteemed Shri Ram MurtiSmarak College of Engineering and Technology, Bareilly for providing me the platform and freedom to explore my talent and skills. I am grateful and wish to place on record my sincere thanks to Dr. Anant K. Srivastava, Head of Management Department, for the guidance and the moral, academic and problem solving support without which this project report would not have come up to its present form. I would also like to thank my colleagues, all faculty members and staff of the MBA department as well as the employees of this elite Institute for whatever they have done for helping me out in the completion of this project report. Last but not the least, I would also like to extend a vote of thanks to all those people and the websites who guided or directed me in bringing this project to the reality. Without their guidance and proper support this project report would not have been possible for me to prepare. Daksh Bhatnagar 1201470010
  4. 4. A REPORT ON ICICI BANK DAKSH BHATNAGAR 3 EXECUTIVE SUMMARY Banks or banking has become an indispensable part of our daily lives. The way people used to deposit and withdraw their money has completely changed. With the advent of e-commerce, Internet banking has completely transformed the face of banking. Services such as ATM services, transfer of money through social networking sites or mobiles are some of the reasons for fast withdrawal of cash. FDI in banking has led to the increase in competition which is why consumers are getting premium and customized banking services. In this report, one of the biggest private sector bank i.e. ICICI Bank is discussed. While going through this report the reader can get insights about structure of Indian banking system, about ICICI bank, their business profile, domestic and international subsidiaries of the bank, acquisitions made by the bank, awards bagged by the bank, their innovative products (like Pockets, a Facebook app and iWish), the competitors who pose a threat to the bank, grievance redressal mechanism, the controversies it was found involved in, the social initiatives taken by the bank under their Corporate Social Responsibility (CSR) programme. The bank has also played a role in developing the market infrastructure in India like it along with UTI has setup CRISIL which is credit rating agency of India. As is usually said by customers that public sector is lethargic and keeps a customer waiting. In this era where customers don’t like to wait, ICICI Bank has set an example and posed a threat to all those banks who are not providing good services to its customers. When it comes to better services, people now-a-days reckon on ICICI Bank. All this has been possible because of undying efforts of its chairman Mr. K.V Kamath and the exemplary MD & CEO Ms. ChandaKochhar. The company’s performance over the years has certainly improved and is expected to get better in the future. Daksh Bhatnagar 1201470010
  5. 5. A REPORT ON ICICI BANK DAKSH BHATNAGAR 4 CHAPTER 1 Introduction to Indian Banking System Banks play a major role in developing an economy. Banks were initially set up with the objective of carrying out its primary function which is to provide loans and accept deposits by public. But with the emergence of economy of India, banks started playing various roles like collecting money of share calls on behalf of a company etc. Banking in India in the modern sense originated in the last decades of the 18th century. The first banks were Bank of Hindustan (1770-1829) and The General Bank of India, established 1786 and since defunct. The largest bank, and the oldest still in existence, is the State Bank of India, which originated in the Bank of Calcutta in June 1806, which almost immediately became the Bank of Bengal. This was one of the three presidency banks, the other two being the Bank of Bombay and the Bank of Madras, all three of which were established under charters from the British East India Company. The three banks merged in 1921 to form the Imperial Bank of India, which, upon India's independence, became the State Bank of India in 1955. For many years the presidency banks acted as quasi-central banks, as did their successors, until the Reserve Bank of India was established in 1935. In 1969 the Indian governmentnationalized all the major banks that it did not already own and these have remained under government ownership. They are run under a structure known as 'profit-making public sector undertaking' (PSU) and are allowed to compete and operate as commercial banks. The Indian banking sector is made up of four types of banks, as well as the PSUs and the state banks, they have been joined since the 1990s by new private commercial banks and a number of foreign banks. Banking in India was generally fairly mature in terms of supply, product range and reach-even though reach in rural India and to the poor still remains a challenge. The government has developed initiatives to address this through the State Bank of India expanding its branch
  6. 6. A REPORT ON ICICI BANK DAKSH BHATNAGAR 5 network and through the National Bank for Agriculture and Rural Development with things like microfinance. Indian Banking Industry currently employs 1,175,149 employees and has a total of 109,811 branches in India and 171 branches abroad and manages an aggregate deposit ofRs.67504.54 billion (US$1.1 trillion or €790 billion) and bank credit of Rs.52604.59 billion (US$860 billion or €620 billion). The net profit of the banks operating in India was 1027.51 billion (US$17 billion or €12 billion) against a turnover of Rs.9148.59 billion (US$150 billion or €110 billion) for the fiscal year 2012-13. Fig. 1: Structure of Indian Banking System
  7. 7. A REPORT ON ICICI BANK DAKSH BHATNAGAR 6 CHAPTER 2 Introduction to ICICI Bank ICICI Bank is an Indian multinational banking and financial services company headquartered in Mumbai. It is the second largest bank in India by assets and by market capitalization, as of 2014. It offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialized subsidiaries in the areas of investment banking, life, non-life insurance, venture capital and asset management. The Bank has a network of 3,539 branches and 11,162 ATMs in India, and has a presence in 19 countries. ICICI Bank is one of the Big Four banks of India, along with State Bank of India, Punjab National Bank and Bank of Baroda. The bank has subsidiaries in the United Kingdom, Russia, and Canada; branches in United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International Finance Centre; and representative offices in United Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia. The company's UK subsidiary has also established branches in Belgium and Germany. Business Profile Type Private Owned Traded as BSE: 532174, NSE: ICICIBANK, NYSE: IBN, BSE SENSEX Constituent, CNX Nifty Constituent Industry Banking, Financial services Headquarters Mumbai, India Presence Worldwide Key people Mr. K.V. Kamath (Chairman) Ms. Chanda Kochhar (MD & CEO) Products Credit cards, Consumer banking, corporate banking, finance and insurance, investment banking, mortgage loans, private banking, wealth management Sales Turnover Rs. 114,500 crores (as on Dec 2013) Website www.icicibank.com
  8. 8. A REPORT ON ICICI BANK DAKSH BHATNAGAR 7 CHAPTER 2 Corporate history ICICI Bank was established by the Industrial Credit and Investment Corporation of India, an Indian financial institution, as a wholly owned subsidiary in 1955. The parent company was formed in 1955 as a joint-venture of the World Bank, India's public-sector banks and public- sector insurance companies to provide project financing to Indian industry. The bank was initially known as the Industrial Credit and Investment Corporation of India Bank, before it changed its name to the abbreviated ICICI Bank. The parent company was later merged with the bank.ICICI Bank launched internet banking operations in 1998. ICICI's shareholding in ICICI Bank was reduced to 46 percent, through a public offering of shares in India in 1998, followed by an equity offering in the form of American Depositary Receipts on the NYSE in 2000. ICICI Bank acquired the Bank of Madura Limited in an all-stock deal in 2001 and sold additional stakes to institutional investors during 2001-02. In the 1990s, ICICI transformed its business from a development financial institution offering only project finance to a diversified financial services group, offering a wide variety of products and services, both directly and through a number of subsidiaries and affiliates like ICICI Bank. In 1999, ICICI become the first Indian company and the first bank or financial institution from non- Japan Asia to be listed on the NYSE. In 2000, ICICI Bank became the first Indian bank to list on the New York Stock Exchange with its five million American depository shares issue generating a demand book 13 times the offer size. In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger of ICICI and two of its wholly owned retail finance subsidiaries, ICICI Personal Financial Services Limited and ICICI Capital Services Limited, with ICICI Bank. The merger was approved by shareholders of ICICI and ICICI Bank in January 2002, by the High Court of Gujarat at Ahmedabad in March 2002 and by the High Court of Judicature at Mumbai and the Reserve Bank of India in April 2002.
  9. 9. A REPORT ON ICICI BANK DAKSH BHATNAGAR 8 In 2008, following the 2008 financial crisis, customers rushed to ICICI ATMs and branches in some locations due to rumors of adverse financial position of ICICI Bank. The Reserve Bank of India issued a clarification on the financial strength of ICICI Bank to dispel the rumors.
  10. 10. A REPORT ON ICICI BANK DAKSH BHATNAGAR 9 CHAPTER 3 Subsidiaries Domestic ICICI Prudential Life Insurance Company Limited ICICI Lombard General Insurance Company Limited ICICI Prudential Asset Management Company Limited ICICI Prudential Trust Limited ICICI Securities Limited ICICI Securities Primary Dealership Limited ICICI Venture Funds Management Company Limited ICICI Home Finance Company Limited ICICI Investment Management Company Limited ICICI Trusteeship Services Limited ICICI Prudential Pension Funds Management Company Limited International ICICI Bank UK PLC ICICI Bank Canada ICICI Bank Eurasia Limited Liability Company ICICI Securities Holdings Inc. ICICI Securites Inc. ICICI International LImited
  11. 11. A REPORT ON ICICI BANK DAKSH BHATNAGAR 10 CHAPTER 4 Acquisitions Acquisitions means to acquire/purchase any other firm. When a big company acquires a smaller company then it is known as acquisitions. There could be various reasons for an acquisition like entering into new market, reducing the level of competition, to reduce the overall cost of supply chain etc. ICICI Bank has also acquired some firms and the acquisitions with the year in these acquisitions happened are mentioned below:- 1996: SCICI Ltd. A diversified financial institution with headquarters in Mumbai 1997: ITC Classic Finance. Incorporated in 1986, ITC Classic was a non-bank financial firm that engaged in hire & purchase, and leasing operations. At the time of being acquired, ITC Classic had eight offices, 26 outlets, and 700 brokers. 1998: Anagram Finance. Anagram had built up a network of some 50 branches in Gujarat, Rajasthan, and Maharashtra that were primarily engaged in retail financing of cars and trucks. It also had some 250,000 depositors. 2001: Bank of Madurai 2002: The Darjeeling and Shimla branches of Grindlays Bank 2005: Investitsionno-Kreditny Bank (IKB), a Russian bank 2007: Sangli Bank. Sangli Bank was a private sector unlisted bank, founded in 1916, and 30% owned by the Bahte family. Its headquarters were in Sangli in Maharashtra, and it had 198 branches. It had 158 in Maharashtra and 31 in Karnataka, and others in Gujarat, Andhra Pradesh, Tamil Nadu, Goa, and Delhi. Its branches were relatively evenly split between metropolitan areas and rural or semi-urban areas. 2010: The Bank of Rajasthan (BOR) was acquired by the ICICI Bank in 2010 for 3,000 crores. RBI was critical of BOR's promoters not reducing their holdings in the company. BOR has since been merged with ICICI Bank.
  12. 12. A REPORT ON ICICI BANK DAKSH BHATNAGAR 11 CHAPTER 5 Products/Services Every firm comes up either with a tangible product or an intangible service which is offered to customers and by selling off those products or services a company generates its sales revenue. Following are some of ICICI bank’s products or services that are being offered to its customers:- 'Pockets by ICICI Bank' In September 2013, ICICI Bank launched a first of its kind app on Facebook 'Pockets by ICICI Bank' across the globe to enable customers to carry out a wide range of financial transactions on Facebook Customers can access the ICICI Bank app by logging into their Facebook account and then going to the official ICICI Bank Facebook page, and clicking on the tab for Pockets by ICICI Bank. The customer then registers online with their debit card number and PIN, and selecting a new four digit PIN for subsequent logins.[32] Through the app, customers can make payments to friends, recharge prepaid mobile and book movie tickets. One can also carry out non-financial transactions such as accessing a mini statement of their savings bank account, getting demat holding statements, opening fixed or recurring deposit, order a cheque book, stop a cheque payment, upgrade debit card, among others. Some of the key features of 'Pockets by ICICI Bank' are: 1. Split n share: It allows customers to split and track group expenses and share them with friends on Facebook. The app also gives the customer the option of sending messages to remind friends on pending payments. 2. Pay a friend: It allows customers to transfer funds to their friends without knowing their bank account details like account number, bank branch, branch IFSC code etc. Through this facility, customers can create electronic coupons that can be redeemed by their friends on the bank website icicibank.com.
  13. 13. A REPORT ON ICICI BANK DAKSH BHATNAGAR 12 MySavings Rewards ICICI Bank has rolled-out the programme ‘MySavings Rewards’ from 1 September 2012, where reward points are offered to individual domestic customers for a variety of transactions done through the savings bank account. Reward points are offered automatically to customers for activating Internet banking, shopping online/ paying utility bills with Internet banking and auto- debit from savings account towards equated monthly installments for home/ auto/ personal loan/ recurring deposit. Customers are required to maintain a monthly average balance of 15,000 or more. Customers can redeem their reward points by logging into his ICICI Bank internet banking account Calling up customer care Walking into the nearest ICICI Bank branch iWish - the flexible recurring deposit iWish is a flexible recurring deposit product launched by ICICI Bank for its savings account customers. iWish is a fun and flexible way to encourage savings among youth for fulfilling aspirations. Unlike a traditional recurring deposit, iWish allows customers to save varying amounts of money at any time of their choice. Customers can create several goals and track their progress on an easy-to-use online interface. They can also share their wishes on Facebook and let their friends and family be a part of their dreams by contributing to their account from any bank account. There will be no penalties if a customer misses his monthly contribution to the recurring deposit. The minimum duration is six months and a customer can open this account starting with 500.
  14. 14. A REPORT ON ICICI BANK DAKSH BHATNAGAR 13 The key features of iWish are: Flexibility: Flexible recurring deposit allows a customer to deposit any amount at any point of time. Customers also have an option of depositing money by giving a standing instruction. Better returns: Customers can earn recurring deposit interest rates on their iWish account while enjoying the freedom of not having to deposit every month. Sharing: Customers can choose to share their wishes on Facebook and let their friends and family be part of their dreams. Contributions:iWish gives an opportunity to the family and friends of a customer to contribute and help him attain his aspirations faster. Contributions can be made from any bank account using a VISA debit card. ICICI Bank has developed this product in collaboration with Social Money. Green products and services Instabanking It is the platform that brings together all alternate channels under one umbrella and gives customers the option of banking through Internet banking, i-Mobile banking, IVR Banking. This reduces the carbon footprint of the customers by ensuring they do not have to resort to physical statements or travel to their branches. Vehicle Finance As an initiative towards more environment friendly way of life, Auto loans offer 50% waiver on processing fee on car models which uses alternate mode of energy. The models identified for the purpose are, Maruti's LPG version of Maruti 800, Omni and Versa, Hyundai's Santro Eco, Civic Hybrid of Honda, Reva electric cars, Tata Indica CNG and Mahindra Logan CNG versions.
  15. 15. A REPORT ON ICICI BANK DAKSH BHATNAGAR 14 Carbon Footprint Calculator Inputs include region, user input of the distance traveled in a particular medium of transport daily, electricity consumed per month and LPG cylinder/piped natural gas used per month. It calculates the net carbon footprint to create awareness and sensitize people about the environment. It also shows the world's and India's average carbon footprint.
  16. 16. A REPORT ON ICICI BANK DAKSH BHATNAGAR 15 CHAPTER 6 Awards Awards mean a lot to anyone. Be it an individual or an organization. Award denote that hard work by people have been recognized and honored by higher authorities. It shows how much efforts were put in by employer as well as employees. Had they not worked hard they won’t have achieved anything and thus won’t have received any award. Following are the awards that have been given to ICICI Bank for its performance and continuous efforts in providing best services to its customers. 2004 Best Bank in India Award presented by Euromoney Magazine 2007 ICICI Bank has been conferred the Euromoney Award 2007 for the Best Bank in the Asia- Pacific Region ICICI Bank wins the Excellence in Remittance Business award by The Asian Banker 2009 ICICI Bank bags the "Best bank in SME financing (Private Sector)" at the Dun & Bradstreet Banking awards 2011 ICICI Bank is the only Indian brand to figure in the BrandZ Top 100 Most Valuable Global Brands Report, second year in a row ICICI Bank ranked 5th in the list of "57 Indian Companies", and 288 th in World Rankings in Forbes Global 2000 list. ICICI Bank has won the "Banking Technology Awards 2010" at The Indian Banks Association in the following categories ICICI Bank was recognized for its Special Citation of the Fully Electronic Branch Service Channel, first set up at Hiranandani Estate, Thane, at the Financial Insights Innovation Awards held in conjunction with Asian Financial Services Congress For the second year in a row, ICICI Bank was ranked 70th in the Brandirectory league tables of the world’s most valuable brands by, The BrandFinance® Banking 500
  17. 17. A REPORT ON ICICI BANK DAKSH BHATNAGAR 16 ICICI Bank was ranked 1st in the Banking and Finance category and 9th in the "2010 Best Companies To Work For" by Business Today ICICI Bank UK, HiSAVE product range has been awarded the Consumer Moneyfacts Awards 2011 for the 'Best Online Savings Provider' For the second consecutive year, ICICI Bank was ranked second in the "India's 50 Biggest Financial Companies", in The BW REAL 500 by Business World ICICI Bank was one of the winners in the Global Awards for Enterprise & IT Architecture Excellence. ICICI Bank bagged the award in the ‘Business Intelligence and Analytics' category. The Brand Trust Report ranks ICICI among the top 4 most trusted financial institutions. ICICI Bank awarded "House Of The Year (India)", by Asia Risk magazine, for eighth time in a row since 2004 ICICI Bank awarded the most Tech-friendly Bank award by Business World ICICI Bank received the Best Trade Finance Bank in India by The Asset Triple A Award, Hong Kong ICICI Bank is the first and the only Indian brand to be ranked as the 45th most valuable global brand by BrandZ Top 100 Global Brands Report 2012 Airtel, ICICI among 'top 100 global brands' ICICI Bank won the "Best Bond House (India) 2011", by IFR Asia ICICI Bank awarded the Best Bank (India) by Global Finance ICICI Bank won the "Century International Quality Era Award" at Geneva ICICI Bank was awarded the "Best Foreign Exchange Bank (India)" by Finance Asia Country Awards. ICICI Bank received the "Dataquest Technology Innovation Awards 2012" for Data centre migration by Dataquest. ICICI Bank was conferred the Best Performance Award for Self Help Group (SHG) Bank Linkage Programme in NABARD's State Level Awards announced by their Maharashtra Regional Office. The Bank received the first prize for the year 2010-11 in the Private Sector Bank category and 2nd runner up for the year 2011-12 in the Commercial Bank category. For the second consecutive year, ICICI Bank won the NPCI's NFS Operational Excellence Awards in the MNC and Private Sector Banks Category for its ATM network. Mr.K.V.Kamath was awarded the "Hall Of Fame" by Outlook Money for his long standing contribution in the financial services sector. ICICI Bank won the Best Bank - India Award by The Banker. Ms. ChandaKochhar ranked 18th in the Fortune's list of '2012 Businesspersons of the Year'. The 50 global leaders is Fortune's annual ranking of leaders who are "the best in business". Ms. ChandaKochhar tops the list of "50 Most Powerful Women in Business" by Fortune India.
  18. 18. A REPORT ON ICICI BANK DAKSH BHATNAGAR 17 ICICI Bank tops the list of "Private sector and Foreign Banks" by Brand Equity, Most Trusted Brands 2012. It ranks 15th in the "Top Service 50 Brands". For the third consecutive year, ICICI Bank ranked second in "India's 50 Biggest Financial Companies" in The BW Real 500 by Businessworld. For the second year in a row, Ms. ChandaKochhar, Managing Director & CEO was ranked 5th in the International list of 50 Most Powerful Women in Business by Fortune. ICICI Bank tops the list of most fans in India and globally ranks fifth amongst financial institutions on Facebook in the social media engagement study conducted by Ketchum Sampark. ICICI Bank in the Private Sector Bank category won the Best Technology Bank of the Year, Best Financial Inclusion Initiative and Best Use of Technology in Training and e- Learning by Indian Bank's Association (IBA) Technology Awards. The Bank also received the first runner up for Best Online Bank, Best Customer Relationship Initiative and Best Use of Mobility Technology in Banking by IBA Technology Awards. ICICI Bank awarded the Best SME Bank for Treasury and Working Capital (India) by The Asset Triple A. ICICI Bank received the Best Trade Finance House and Best Cash Management House by The Corporate Treasurer Alliance Country Awards. ICICI Bank awarded the Best Private Sector Bank in Global Business Development, Rural Reach and SME financing categories by Dun & Bradstreet - Polaris Financial Technology Banking Awards. 2013 ICICI Bank has been adjudged winner at the Express IT Innovation Award under the Large Enterprise category ICICI Bank wins awards under the categories of 'Most Innovative Bank' and 'Most Innovative use of Multi-Channel Infrastructure' at the Indian Bank's Association's BANCON Innovation Awards 2013. ICICI Bank won the Asian Banking & Finance Retail Banking Award 2013 for the Online Banking Initiative of the Year ICICI Bank won an award under the Social Media category at the InformationWeek EDGE Award Ms. ChandaKochhar, MD and CEO has been awarded as the Best CEO - Private Sector category at the Forbes India Leadership Awards 2013. Ms. ChandaKochhar, MD & CEO, has been named as the most powerful woman in business in India for the third consecutive year in Fortune's list of '50 Most Powerful Women In Business: The Global 50'. She is also among the four most powerful women in business in the world, according to the list. ICICI Bank received the award for 'Best Private Sector Banker' by the Sunday Standard Best Bankers Awards 2013. ICICI Bank has been awarded the 'Best Banker - All round expansion' by the Sunday Standard Best Bankers Awards 2013.
  19. 19. A REPORT ON ICICI BANK DAKSH BHATNAGAR 18 ICICI Bank won 'Best Banker - Efficiency & Profitability' by the Sunday Standard Best Bankers Awards 2013. Mr KV Kamath, Chairman, receives the "AIMA Managing India" Award for "Outstanding Institution Builder" MsChandaKochhar, MD & CEO, receives the "AIMA JRD Tata Corporate Leadership Award" 2012 ICICI Bank has won the Trade Finance Magazine Award for Excellence 2013, under the category of 'Asia Pacific Awards : Best Trade Bank in India' ICICI Bank received the Asian Banking & Finance Wholesale Banking Awards 2013 for the India Domestic Trade Finance Bank of the Year ICICI Bank Limited has been awarded as the Best Private Sector Bank under the category Global Business Development for the Dun & Bradstreet - Polaris Financial Technology Banking Awards 2013 ICICI Bank has been one of the recipients of the Corporate Governance Asia Annual Recognition Awards 2013 MsChandaKochhar received the 'Transformation Leader Award' by NDTV Profit Business Leadership Awards 2012. For the second consecutive year, Mr. N.S.Kannan, Executive Director & CFO, received the "Best Performing CFO", in the Banking / Financial Services category by CNBC - TV 18. Ms. ChandaKochhar, MD & CEO, was also featured in the Power List 2013 of 25 most powerful women in Inda by India Today, for the third year in a row. Ms. ChandaKochhar is the only Indian to be featured in the Dow Jones list of Most Influential Female Executives in the World of the last decade. She is ranked 12th in the global list. ICICI Bank awarded the Most Admired Infrastructure Debt Financer and PPP Project of the Year: Yamuna Expressway Project, in the 5th KPMG Infrastructure Today Awards by ASAPP Media Information Group. For the 4th consecutive year, ICICI Bank won the Celent Model Bank for the next generation technology oriented banking solutions. ICICI Bank was awarded a "Special IT Innovation Award" by Lenovo - NASSCOM and CNBC-TV18. ICICI Bank was the winner of "6th Loyalty Awards" for My Savings Rewards by AIMIA (global leader in Loyalty). ICICI Bank UK PLC's online savings product HiSAVE won the "Highly Commended" (2nd rank) at the Consumer Moneyfacts Awards. ICICI Bank received the "Gram Samvad", Service for Low cost/Small budget marketing initiative Award by Rural Marketing Association of India (RMAI). Ms. ChandaKochhar awarded the Businessperson of the Year 2012 by Business India. She is the first woman recipient of this award in 31 years. ICICI Bank won the Best domestic bank, India by The Asset Triple A Country Awards.
  20. 20. A REPORT ON ICICI BANK DAKSH BHATNAGAR 19 CHAPTER 7 Comparative Performance Performance in terms of sales revenue The above chart depicts the sales revenue of ICICI bank from 2008 to 2013. As can be seen there are estimated sales and the actual sales shown on the chart. Every year, the bank did not achieve what they estimated. The worst year for ICICI bank, according to this chart is 2011 as the difference between the estimated sales and actual sales is the biggest. On the other hand, the next year i.e. 2012 can be considered as the best year as they achieved more than what they estimated which means the company not only recovered the previous year’s loss but also surpassed the estimated sales of 2012.
  21. 21. A REPORT ON ICICI BANK DAKSH BHATNAGAR 20 CHAPTER 8 Competitors BANKS MARKET CAP. NET INTEREST INCOME NET PROFIT TOTAL ASSETS HDFC Bank 175,520.33 35,064.87 6,726.28 400,331.90 ICICI Bank 140,317.94 40,075.60 8,325.47 536,794.69 Axis Bank 63,614.35 27,182.57 5,179.43 340,560.66 Kotak Mahindra 58,214.95 8,042.49 1,360.72 83,693.68 IndusInd Bank 24,615.65 6,983.23 1,061.18 73,306.52 Yes Bank 12,833.15 8,294.00 1,300.68 99,104.12 ING Vysya Bank 10,697.00 4,861.58 612.96 54,836.45 JK Bank 7,152.17 6,136.79 1,055.10 71,743.32 Federal Bank 7,142.15 6,167.57 838.17 60,626.78 KarurVysya 3,399.78 4,242.43 550.32 46,733.35
  22. 22. A REPORT ON ICICI BANK DAKSH BHATNAGAR 21 CHAPTER 9 Corporate governance Corporate governance refers to the set of systems, principles and processes by which a company is governed. They provide the guidelines as to how the company can be directed or controlled such that it can fulfil its goals and objectives in a manner that adds to the value of the company and is also beneficial for all stakeholders in the long term. Stakeholders in this case would include everyone ranging from the board of directors, management, shareholders to customers, employees and society. The management of the company hence assumes the role of a trustee for all the others. In the recent past there have been many scams because of which a need for better corporate governance is felt. SEBI and other regulatory bodies are trying to improve the condition of Corporate Governance so that these scams do not surface too often. For better corporate governance, ICICI bank has also taken few steps and these are as follows:- Group Anti Money Laundering Policy: The ICICI Group AML Policy establishes the standards of AML compliance and is applicable to all activities. Code of Conduct: ICICI Bank has formulated a Code of Business Conduct and Ethics for its directors and employees.
  23. 23. A REPORT ON ICICI BANK DAKSH BHATNAGAR 22 CHAPTER 10 Tab Banking Tab Banking is the latest addition by ICICI bank to the banking facilities provided by the bank. Powered with an advanced application on tablets, customers can now enjoy a faster and smoother account opening experience with ICICI Bank.The costs of Tab banking are just one- tenth of that of branch banking, says Mr. KVS Manian, President, Consumer Banking. Axis Bank and Kotak Mahindra bank have also started the practice. The Process Tab banking officer will come to a place of customer’s convenience, click your photograph and scan the necessary documents required to open an ICICI Bank account with the help of a tablet. The account gets activated within a day. Advantages Some benefits of Tab Banking other than avoiding hassle of arranging documents and account activation within a day are:- 1. Check out ICICI Bank Offer Zone to avail exclusive offers and discounts on a variety of products and services 2. Branch Locator 3. Calculate Monthly Average Balance and Loan EMI 4. Understand how to use iMobile and Internet Banking through Demo videos 5. Know more about Health, Motor and Travel Insurance calculator 6. Know more about service charges 7. Brings down the percentage of rework from 7 percent to 1 percent 8. Would reduce turnaround time and cost to the bank
  24. 24. A REPORT ON ICICI BANK DAKSH BHATNAGAR 23 CHAPTER 11 Grievance Redressal Sometimes a customer may be dissatisfied with the services. In that case he/she must be heard by service provider or company otherwise it would lead to dissatisfied customers who would spread bad words about the company which would result in tarnishing of the image and reduction in the sales revenue of the company. For addressing the issues or the problems of customers every firm designs a grievance redressal system through which the problems of customers can be easily sorted out. ICICI Bank has also designed a grievance redressal system through which an aggrieved customer can get his or her problem solved by contacting various persons at different steps of the system. There are four steps in grievance redressal system of ICICI Bank. At first step, customer has two options. Either he can dial the customer care number or file his complaint online. If the customer is dissatisfied then at the second step, Mr. KrishanGovindan who is the head of Customer service can be contact in case the aggrieved customer is still dissatisfied. At step 3, Mr. Shiva Tadikonda who is the nodal officer can be contacted for further discontentment. If still the problem persists, Mr. Sourabh Singh who is Senior General Manager & Head of Customer Service can be contacted.The bank promises to respond to complaints within 7 business days.
  25. 25. A REPORT ON ICICI BANK DAKSH BHATNAGAR 24 CHAPTER 12 Role in development of market infrastructure ICICI Bank has played a major role and contributed to setting up of different Indian institutions which include the following: 1. National Stock Exchange (NSE) The National Stock Exchange was promoted by India’s leading financial institutions (including ICICI Ltd.) in 1992 on behalf of the Government of India with the objective of establishing a nationwide trading facility for equities, debt instruments and hybrids, by ensuring equal access to investors all over the country through an appropriate communication network. 2. Credit Rating Information Services of India Limited (CRISIL) In 1987, ICICI Ltd along with UTI set up CRISIL as India's first professional credit rating agency. CRISIL offers a comprehensive range of integrated products and service offerings which include credit ratings, capital market information, industry analysis and detailed reports.[21] 3. National Commodities and Derivatives Exchange Limited (NCDEX) NCDEX is a professionally managed online multi-commodity exchange, set up in 2003, by ICICI Bank Ltd, LIC, NABARD, NSE, Canara Bank, CRISIL, Goldman Sachs, Indian Farmers Fertiliser Cooperative Limited (IFFCO) and Punjab National Bank. 4. Financial Innovation Network and Operations Pvt Ltd. (FINO) ICICI Bank has facilitated setting up of "FINO Cross Link to Case Link Study" in 2006, as a company that would provide technology solutions and services to reach the underserved and under banked population of the country. Using cutting edge technologies like smart cards, biometrics and a basket of support services, FINO enables financial institutions to
  26. 26. A REPORT ON ICICI BANK DAKSH BHATNAGAR 25 conceptualize, develop and operationalize projects to support sector initiatives in microfinance and livelihoods. 5. Entrepreneurship Development Institute of India Entrepreneurship Development Institute of India (EDII), an autonomous body and not-for-profit society, was set up in 1983, by the erstwhile apex financial institutions like IDBI, ICICI, IFCI and SBI with the support of the Government of Gujarat as a national resource organization committed to entrepreneurship development, education, training and research. 6. North Eastern Development Finance Corporation (NEDFI) North Eastern Development Finance Corporation (NEDFI) was promoted by national level financial institutions like ICICI Ltd in 1995 at Guwahati, Assam for the development of industries, infrastructure, animal husbandry, agri-horticulture plantation, medicinal plants, sericulture, aquaculture, poultry and dairy in the North Eastern states of India. NEDFI is the premier financial and development institution for the North East region. 7. Asset Reconstruction Company India Limited (ARCLI) Following the enactment of the Securitisation Act in 2002, ICICI Bank together with other institutions, set up Asset Reconstruction Company India Limited (ARCIL) in 2003, to create a facilitative environment for the resolution of distressed debt in India. ARCIL was established to acquire non-performing assets (NPAs) from financial institutions and banks with a view to enhance the management of these assets and help in the maximization of recovery. This would relieve institutions and banks from the burden of pursuing NPAs, and allow them to focus on core banking activities. 8. Credit Information Bureau of India Limited (CIBIL) ICICI Bank has also helped in setting up Credit Information Bureau of India Limited (CIBIL), India’s first national credit bureau in 2000. CIBIL provides a repository of information (which
  27. 27. A REPORT ON ICICI BANK DAKSH BHATNAGAR 26 contains the credit history of commercial and consumer borrowers) to its members in the form of credit information reports. The members of CIBIL include banks, financial institutions, state financial corporations, non-banking financial companies, housing finance companies and credit card companies. 9. Institutional Investor Advisory Services India Limited (IiAS) ICICI Bank has indirectly invested, through ICICI Prudential Life Insurance Company, in IiAS. IiAS is a voting advisory firm aka proxy firm, dedicated to providing participants in the Indian market with data, research and commentary. It provides recommendations on resolutions placed before shareholders of over 300 companies.
  28. 28. A REPORT ON ICICI BANK DAKSH BHATNAGAR 27 CHAPTER 12 Controversies Inhuman debt recovery methods A few years after its rise to prominence in the banking sector, ICICI bank faced allegations on the recovery methods it used against loan payment defaulters. A number of cases were filed against the bank and its employees for using "brutal measures" to recover the money. Most of the allegations were that the bank was using goons to recover the credit card payments and that these "recovery agents" exhibited inappropriate and in some cases, inhuman behavior. Incidents were reported wherein the defaulters were put to "public shame" by the recovery agents. The bank also faced allegations of inappropriate behavior in recovering its loans. These allegations started initially when the "recovery agents" and bank employees started threatening the defaulters. In some cases, notes written by the bank's employees asking the defaulters to "sell everything in the house including family members", were found. Such charges faced by the bank rose to a peak when suicide cases were reported wherein the suicide notes spoke of the Bank's recovery methods as the cause of the suicide. This led to a lot of legal battles and the bank paying huge compensations. Money laundering allegations ICICI Bank was one of the leading Indian banks accused of blatant money laundering through violation of RBI guidelines in the famous CobraPost sting operation which shook up Indian banking industry during April–May 2013. On 14 March 2013 the online magazine CobraPost released video footage from Operation Red Spider showing high-ranking officials and some employees of ICICI Bank agreeing to convert black money into white, an act in violation of Money Laundering Control Act. The Government
  29. 29. A REPORT ON ICICI BANK DAKSH BHATNAGAR 28 of India and Reserve Bank of India ordered an inquiry following the exposé. On 15 March 2013, ICICI Bank suspended 18 employees, pending inquiry. On 11 April 2013 Deputy Governor of RBI, HR Khan reportedly told that the central bank is initiating action against ICICI Bank in connexion with allegations of money laundering. Credit Rating On account of the growing concerns over India's sovereign debt ratings,credit ratings agency Moody's lowered the ratings for ICICI Bank from Baa3 to Baa2 in May 2012.
  30. 30. A REPORT ON ICICI BANK DAKSH BHATNAGAR 29 CHAPTER 13 Social Initiatives A firm which operates in a society considers itself as a part of society and believes they must give back to the society. Though it compensates for everything still they are taking initiatives because they feel that they have been fostered by the society and feel responsible towards the society. This can be referred to as Corporate Social Responsibility (CSR) activities of a firm. In today’s world, most of the companies are performing such activities not because it has been made mandatory by the govt. but firms feel by performing CSR activities, their image amongst their customers would improve. Following are the initiatives that have been taken by ICICI bank:- For Primary Health o Jharkhand Sahhiya Programme o Nutrition Programme In Baran, Rajasthan For Elementary Education o School and Education Teacher Reform Programme in Rajasthan o Chhattisgarh Curriculum and text development programme For Skill Development & Livelihoods – Provide vocational and skill training for rural youth For Financial Inclusion o Insurance Plan o Commercial Banking Systems
  31. 31. A REPORT ON ICICI BANK DAKSH BHATNAGAR 30 Go Green Initiative The Go Green Initiative is an organization wide initiative that moves beyond moving people, processes and customers to cost effective automated channels to build awareness and consciousness of our environment, our nation and our society. Objective ICICI Bank’s Green initiative is to make healthy environment in the organization i.e.; to create intrapersonal skills amongst the customers and understanding between employees of the organization. Broad objectives of the ICICI are: 1. to assist in the creation, expansion and modernization of private concerns; 2. to encourage the participation of internal and external capital in the private concerns; 3. To encourage private ownership of industrial investment.
  32. 32. A REPORT ON ICICI BANK DAKSH BHATNAGAR 31 REFERENCES http://en.wikipedia.org/wiki/ICICI_Bank http://www.moneycontrol.com/financials/icicibank/balance-sheet/ICI02#ICI02 http://www.moneycontrol.com/competition/icicibank/comparison/ICI02#ICI02 http://www.icicibank.com/privilege-banking/personal/privilege-banking-advantage.html http://icicibank.com/complaints/Complaints-step3.html http://www.thehindubusinessline.com/economy/now-banking-on-tablets-to-win- customers/article5747094.ece http://www.dnb.co.in/News_Press.asp?pid=1179 http://en.wikipedia.org/wiki/Banking_in_India http://www.ibef.org/industry/banking-india.aspx# http://www.investopedia.com/articles/07/banking.asp