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ICICI Bank is India's second-largest bank with total assets of about Rs. 1 trillion and a network of about 540 branches and offices and over 1,000 ATMs. 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-Banking , venture capital, asset management and information technology. ICICI Bank's equity shares are listed in India on stock exchanges at Chennai, Muzaffarnagar, Kolkata and Vadodara, the Stock Exchange, Mumbai 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 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 all-stock 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 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. After consideration of various corporate structuring alternatives in the context of the emerging competitive scenario in the Indian banking industry, and the move towards universal banking, the managements of ICICI and ICICI Bank formed the view that the merger of ICICI with ICICI Bank would be the optimal strategic alternative for both entities, and would create the optimal legal structure for the ICICI group's universal banking strategy. The merger would enhance value for ICICI shareholders through the merged entity's access to low-cost deposits, greater opportunities for earning fee-based income and the ability to participate in the payments system and provide transaction-banking services. The merger would enhance value for ICICI Bank shareholders through a large capital base and scale of operations, seamless access to ICICI's strong corporate relationships built up over five decades, entry into new business segments, higher market share in various business segments, particularly feebased services, and access to the vast talent pool of ICICI and its subsidiaries. In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger of ICICI and two of its wholly owned retail finances 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. Consequent to the merger, the ICICI group's financing and banking operations, both wholesale and retail, have been integrated in a single entity.


ICICI Bank has signed an agreement to use the NCR switch mark technology for onlinenetworking all its ATMs, the officials said they network would come into place in September. ICICI Bank recently restructured its organizational structure by setting up strategic business units for retail banking, corporate banking and fore and treasury operations, as independent profit centers. ICICI is all set to launch a 60-second television commercial on August 15, 1999. 2000 ICICI Bank became the first Indian bank to list on the New York Stock Exchange with its $175million American depository shares issue generating a demand book 13 times its size at $2.2 billion. The Bank proposes to bring credit cards to the "large, underserved population" in rural and semi-urban areas. SkyCell Communications Ltd, one of the two cellular service providers in Chennai, has launched `Sky Banking', for which the company has tied up with ICICI Bank and HDFC Bank. The ICICI has announced the launch of mobile banking services for its customers, using the wireless application protocol (WAP) technology.

Ford India has tied up with ICICI Bank to introduce a scheme, enabling non-resident Indians (NRIs) to purchase a Ford Ikon car for their friends and relatives in India. ICICI Bank has set up an ATM facility at an Indian Oil Corporation petrodiesel outlet at Chennai. ICICI Bank has tied up with Chennai Telephones to provide Internet bill payment facility to its customers.

The Indian banking industry, which has Reserve Bank of India as its regulatory authority, is a mix of the public sector, private sector, and foreign banks. The private sector banks are again split into old banks and new banks.

Scheduled commercial banks are those that come under the purview of the Second Schedule of Reserve Bank of India (RBI) Act, 1934. The banks that are included under this schedule are those that satisfy the criteria laid down vide section 42 (60 of the Act). Some co-

operative banks come under the category of scheduled commercial banks though not all cooperative banks.


Public sector banks are those in which the Government of India or the RBI is a majority shareholder. These banks include the State Bank of India (SBI) and its subsidiaries, other nationalized banks, and Regional Rural Banks (RRBs). Over 70% of the aggregate branches in India are those of the public sector banks. Some of the leading banks in this segment include Allahabad Bank, Canara Bank, Bank of Maharashtra, Central Bank of India, Indian Overseas Bank, State Bank of India, State Bank of Patiala, State Bank of Bikaner and Jaipur, State Bank of Travancore, Bank of Baroda, Bank of India, Oriental Bank of Commerce, UCO Bank, Union Bank of India, Dena Bank and Corporation Bank.


Private banks are essentially comprised of two types: the old and the new. The old private sector banks comprise those, which were operating before Banking Nationalization Act was passed in 1969. On account of their small size, and regional operations, these banks were not nationalized. These banks face intense rivalry from the new private banks and the foreign banks. The banks that are included in this segment include: Bank of Madura Ltd. (now a part of ICICI Bank), Bharat Overseas Bank Ltd., Bank of Rajasthan, Karnataka Bank Ltd., Lord Krishna Bank Ltd., The Catholic Syrian Bank Ltd., The Dhanalakshmi Bank Ltd., The

Federal Bank Ltd., The Jammu & Kashmir Bank Ltd., The Karur Vysya Bank Ltd., The Lakshmi Vilas Bank Ltd., The Nedungadi Bank Ltd. and Vysya Bank. The new private sector banks were established when the Banking Regulation Act was amended in 1993. Financial institutions promoted several of these banks. After the initial licenses, the RBI has granted no more licenses. These banks are gearing up to face the foreign banks by focusing on service and technology. Currently, these banks are on an expansion spree, spreading into semi-urban areas and satellite towns. The leading banks that are included in this segment include Bank of Punjab Ltd., Centurion Bank Ltd., Global Trust Bank Ltd., HDFC Bank Ltd., ICICI Banking Corporation Ltd., IDBI Bank Ltd., IndusInd Bank Ltd. and UTI Bank Ltd.

The operations of foreign banks, though similar to that of other commercial Indian banks, are mainly confined to metropolitan areas. Foray of foreign banks depends on reciprocity, economic and political bilateral relations. An inter-departmental committee has been set up to endorse applications for entry and expansion. Foreign banks, in the wake of the liberalization era, are looking to expand and diversify. Some of the leading foreign banks that operate in India are Citibank, Standard Chartered Grindlays Bank, Hong Kong Shanghai Banking Corporation, Bank of America, Deutsche Bank, Development Bank of Singapore and Banque National De Paris. PUBLIC SECTOR BANKING AT A DISADVANTAGE Functioning of Public Sector Banks (PSBs), which are yet to achieve computerization across the board, is at a relative disadvantage when compared to the private sector, which is offering state-of-the-art facilities such as ATMs, doorstep banking, banking on phone, and net banking. PSBs also suffer from huge costs of labor and low levels of automation. At this rate, it may not be long before new channels devised by private banks effectively surpass the number of branch networks offered by the PSBs. This apart, the problems which have assumed enormous proportion today as far as Public Sector banks are concerned are ballooning NPA levels, declining margins, poor credit off-take, high overheads, and lack of good quality assets. Banks are sticking to reliable borrowers for fear of bad debts. In fact, banks largely invest in government securities, which

have zero risk. With GOI being the single largest borrower, the yields on these securities determine the interest rates. The government aims to decrease its shareholding in PSBs to 33%, however, at the same time it also wants to retain the controlling stake. This, it is feared, is not going to solve the problems which PSBs are coping with now.


Corporate governance and self-regulation are the ground rules for the private sector. Government interference is not preferred. While some private banks such as ICICI Bank, UTI Bank and IDBI Bank have financial institutions backing them, others are opting for foreign partnerships for technology and monetary resources. Private banks have emerged relatively strong, with about 60% growth reported in net profits in the year ended March 2000. With a net profit of Rs.120 crores (+46%), HDFC was the clear leader. IDBI Bank, however took the cake by doubling its net profit, which reached Rs.60.99 crores in March 2000.The jump in profits can mainly be attributed to non-traditional sectors such as commission, exchange, brokerage, and profit on sale of investments.


CORPORATE BANKING Corporate Solutions Government Solutions Capital Market Services Agriculture Finance Structured Finance Project Finance Infrastructure Finance Term Loans Working Capital Finance Cash Management Services Trade Finance Services International Banking Treasury Services Corporate Internet Banking Corporate Advisory Custodial Services

RETAIL BANKING Home Loans Car & Two Wheeler Loans Consumer/Personal Loans Saving & Term Deposit Salary Account Roaming Current Accounts Investment Products Private Banking NRI Services Demat Services Credit & Debit Cards Smart Cards Bill Payment Services E-Cheques Branches ATMs

Professional Clearing Membership Services

Internet Banking Phone Banking

What's on offer Hello ICICI and HDFC brings you a host of services at your fingertips 365 days a year. A user friendly automated service menu offers you convenient access to your account coupled with security as, all your transactions are protected by a TPIN - The Personal password to your account. But if you do need any assistance our officers will be glad to help you.

Whats more... this facility comes to you totally free of charge! Some of the services offered are listed below Savings account :

Balance Enquiry Statement of account Cheque status enquiry Stop Payment Cheque book request Dial-a- draft/payorder ATM lost card reporting Request for a new ATM PIN

Fixed Deposits:

Opening a Fixed Deposit Checking Fixed Deposit details Request for TDS statement

Credit Cards:

Balance and account related inquiries Statement of account Dial a draft/payorder Lost/Replacement card ATM pin re-issue

Payment instructions (maybe through a letter to the Call Centre)


Standing Instructions Complaints and suggestions Inquire about any ICICI retail product


Risk is an integral part of the banking business and ICICI Bank aims at the delivery of superior shareholder value by achieving an appropriate trade-off between risk and returns. ICICI Bank is exposed to various risks, including credit risk, market risk and operational risk. Our risk management strategy is based on a clear understanding of various risks, disciplined risk-assessment and measurement procedures and continuous monitoring. The policies and procedures established for this purpose are continuously benchmarked with international best practices. A comprehensive range of quantitative and modelling tools developed by a dedicated risk analytics team supports the risk management function at ICICI Bank. The Risk, Compliance & Audit Group (RCAG) is responsible for assessment, management and mitigation of risk in ICICI Bank. This group, forming a part of the Corporate Centre, is completely independent of all business operations and accountable to the Risk and Audit Committees of the Board of Directors. RCAG is organised into six subgroups: Credit Risk Management Group, Market Risk Group, Credit Policies Group, Internet Audit Group, Retail Risk Group and Risk Analytics Group.


CREDIT RISK Credit risk is the risk that a borrower is unable to meet its financial obligations to the lender. ICICI Bank measures, monitors and manasgers credit risk for each borrower asnd also at the portfolio level. ICICI Bank has a standardised credit approval process, which includes a wellestablished procedure of comprehensive credit appraisal and rating. ICICI Bank has developed internal credit rating methodologies for rating obligors as well as for rating. ICICI Bank has developed internal credit rating methodologies for rating obligors as well as for product / facilities. The rating factors in quantitative and qualitative issues and credit enhancement features specific to the transaction. The rating serves as a key input in the sanction as well as post-sanction credit processes. Credit rating, a as concept, has been well internalised within the Bank. The rating for every borrower is reviewed as least annually and for higher risks credits and large exposures at shorter intervals. Sector knowledge has been institutionalized across ICICI Bank through the availability of sector-specific information on the Intranet. Industry knowledge is constantly updated through field visits, interactions with clients, regulatory bodies and industry experts. In respect of the retail credit business, ICICI Bank has a system of centralized approval of all products and policies and monitoring of the retail portfolio. We continuously refine our retail credit parameters based on portfolio analytics.


MARKET RISK Market risk is the risk of loss resulting from changes in interest rates, foreign currency exchange rates, equity prices and commodity prices. HDFC Banks exposure to market risk a function of its trading and asset and liability management activities and its role as a financial intermediary in customer-related transactions. The objective of market risk management is to minimize the impact of losses due to market risks on earning and equity capital. Market risk policies include Asset-Liability Management (ALM) policies and policies for the trading portfolio. The Asset-Liability Management Committee (ALCO) of Board of Directors approves ALM policies. ALCOs role encompasses stipulating liquidity and interest rate risk limits, monitoring risk levels by adherence to set limits, articulating the organizations interest rate view and determining business strategy in the light of the current and expected business environment. These sets of policies and processes are articulated in ALM policy. A separate set of policies for the trading portfolio address issues related to investments in various trading products and are approved by the Committee of Directors (COD) of the Board. RCAG exercises independent control over the process of market-risk management and recommends changes in processes and methodologies for measuring market risk.


MIDDLE OFFICE GROUP HDFC Bank has a separate Middle Office Group to monitor both credit and treasuryrelated compliance. The Credit Middle Group monitors compliance with policies and terms of sanction of credit proposals. The Treasury Middle Office Group monitors the asset-liability position under the supervision of the ALCO. It also monitors treasury activities, including determining compliance with various exposure and dealing limits, verifying the appropriateness and accuracy of various transactions, processing these transactions, tracking the daily funds position and all treasury related management and regulatory reporting. Interest rate risk is measured through the use of re-pricing gap analysis. Liquidity risk is measured through gap analysis. HDFC Bank ensures adequate liquidity at all times through systematic funds maintenance of liquid investment as well as by focusing on more stables funding sources such as retail deposits. HDFC Bank mitigates its exposure to exchange rate risk by stipulating daily stop-loss limits and position limits.

OPERATIONAL RISK Operational risk can result from a variety of factors, including failure to obtain proper internal authorization, improperly documented transactions, failure of operational and information security procedures, computer systems and software or equipment, fraud, inadequate training and employee errors. We attempt operational risk by maintaining a comprehensive system of internal controls, establishing systems and procedures to monitors

transactions, maintaining key back-up procedures and undertaking regular contingency planning. The Middle Office Group monitors adherence to credit procedures. The International Audit Group undertakes a comprehensive audit of all business group and other functions, in accordance with a risk-based audit plan. This plan allocates audit resources based on an assessment of the operational risks in the various businesses. ICICI Bank has been a pioneer in the implementation of a risk-based audit methodology in the Indian banking sector. The International Audit Group conceptualizes and implements improved system of internal controls to minimize operational risk.



Future expectations We soon plan to introduce:

payment services to certain standard utilities Demat-related information own accounts funds transfer ICICI will also use WAP technology for undertaking on-line transactions If you have an HDFC Phone Banking Relationship Number (under which your

accounts are linked to the HDFC Call Centre for HDFC Phone Banking), the same accounts will be linked for Mobile Commerce. If you do not have an HDFC Phone Banking Relationship Number, you can specify the account number(s) and your HDFC Credit Card Number to be linked for SMS.



ICICI Bank has appointed international consultancy major monitor group to help the bank in identification of business prospects in the government sector which has recently been identifies as a focus area. Monitor will help ICICI get business from the government sector, particularly the infrastructure sector mandates. The bank did not consider government business a focus area till sometime back. Now, Monitor Group will study investment prospect of tourism in Rajasthan, opportunities for the government of Andhra Pradesh and investment prospects for the bank through the government in cities such as Pune and Kolkata. We are trying to find out how ICICI Bank can be a partner to the government in development plans and projects. The bank has initiated fresh focus towards the government which is a major source of business and we would like to increase relatio nship with government agencies, ICICI officials said.

Monitor Group will find out ways and means for ICICI Bank through which the latter Can solve government fund flow problems and how ICICI Bank can play a role in the projects, bank officials said.

This is a test study and if there is a positive response from the government then more such specific developmental studies will be taken up by the bank as partners to development. -ECONOMICS TIMES.

1/11/03 ICICI Bank clocks 110% growth in retail portfolio in Q2 Mumbai: The retail portfolio of ICICI Bank grew by 110 per cent to Rs 25,205 crore (Rs 12,021 crore) in the second quarter. Retail assets constituted 39 per cent of the bank's customer assets. While leveraging and enhancing its position as the original lender, the bank also continued to focus on securitisation of its customer assets. This had enabled the bank to optimize resources and capital utilization and diversify the composition of its asset portfolio. During the first half of this financial year, the total sell down and securitisation of assets was around Rs 5,300 crore. According to the bank, its net restructured loans declined to Rs 7,856 crore (Rs 10,491 crore). Net NPAs were at Rs 3,128 crore, constituting 4.8 per cent of its customer assets. Deposits grew by 18 per cent to Rs 56,880 crore (Rs 48,169 crore). As on September 30, 2006, the deposits constituted 58 per cent of the bank's funding against 42 per cent in the corresponding period of the previous year. The capital adequacy as on September 30, 2006 was at 11.5 per cent.



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 our deposit products and provide your details online and our representative will contact you for Account Opening.

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

Senior Citizen Services We understand that as you reach the age to retire, you do have certain concerns whether your hard earned money is safe and secure whether your investments give you the kind of returns that you need. That's why we have an ideal Banking Service for those who are 60

years and above. The Senior Citizen Services from ICICI Bank has several advantages that are tailored to bring more convenience and enjoyment in your life. Young Stars

It's really important to help children learn the value of finances and money management at an early age. Banking is a serious business, but we make banking a pleasure and at the same time children learn how to manage their personal finances.

Fixed Deposits Safety, Flexibility, Liquidity and Returns!!!! A combination of unbeatable features of the Fixed Deposit from ICICI Bank.

When expenses are high, you may not have adequate funds to make big investments. But simply going ahead without saving for the future is not an option for you. Through ICICI Bank

Recurring Deposit you can invest small amounts of money every month that ends up with a large saving on maturity. So you enjoy twin advantages- affordability and higher earnings. DOCUMENTATION Applicants must satisfy the following documentation requirements:

Identity proof Proof of communication address Self cheque (if the applicant is not visiting the branch for account opening)

Identity (Any one of the following)

Proof Proof




(Any one of the following)

Original letter of introduction from existing bank along with KYC cheque of the same Bank

Introduction by an existing and satisfactory customer as address proof

Driving License Book type or laminated & embossed

Latest Electricity Bill

Voter Identity Card with KYC cheque for operating accounts. Cash can be accepted for Term deposits.

Certificate from the postal office confirming address of applicant

Employee Identity Card


Original Letter from Employer certifying the

residential address of applicant. Signature of the employee has to be attested on the letter.

PAN Card

Telephone bills from any telephone service providers and mobile service providers (KYC cheque mandatory for mobile service providers)

Defence Dependent's card

Consumer gas connection card/book/Pipe Gas bill (same as electricity bill)

Ex-Service Man Card

Certificate from the ward/equivalent rank officer, maintaining election roll, certifying address of the applicant

Bar Council/Indian Medical Association Card/Senior Citizen Card

Registered and valid Lease/ Leave agreement with copies of utility bills

PIO Booklet for returning NRIs

Post Office Savings Pass Book with KYC cheque

MAPIN card

Statement of account or Pass Book of a


scheduled commercial bank with entries of at least last 3 months alongwith KYC cheque

Premium Receipt from any Banking company

Certificate by Village Extension Officer (VEO)/Village Head or equal rank officers

Domicile Certificate with communication address and photograph

Accepted as both Identity and Address proof (Any one of the following)


Arms License issued by State/Central Government of India authorities

Freedom fighter's pass issued by Ministry of Home affairs, Government of India with photograph of applicant

Pension payment order/book/Card issued by State/Central Government of India.


Printed Ration Card with Photograph of applicant.

House hold Card with photograph issued by Govt of Andhra Pradesh

ID card with photograph issued by Govt of Jammu and Kashmir

Bank Pass Book with photograph issued by SBI and its subsidiaries or Nationalised Banks

Photo Social Security Card (Smart Card) issued by Central/State Govts or Union territories.

Savings Bank Account: 3.50% Domestic term deposits (General Category) : * ** Subject Recurring to Deposit will revision not be without available for further tenure of 390 notice. days.

Note: Rates for Deposits for Rs.1 Crore and above will be advised by treasury from time to time. INTEREST RATES FOR SENIOR CITIZENS: 1. Eligibility Criteria A person who has completed the age of 60 years may be treated as a senior citizen for getting the benefit under the special deposit scheme for senior citizens. 2. Verification of Age: Opening of New Account

At the time of opening of a new deposit account of a senior citizen, the branch should satisfy about the age through verification of any of the following documents:Secondary LIC Policy Voters Identity Card Pension Payment Order Birth Certificate issued by the competent authority Passport PANCard Interest Rates for Senior Citizens : School Leaving Certificate indicating date of Birth








** Recurring Deposit will not be available for tenure of 390 days. Penalty on Pre-mature withdrawal (All Categories) would be applicable as below:


The ICICI Bank Ncash debit card is a debit-cum-ATM card providing you with the convenience of acceptance at merchant establishments and cash withdrawals at ATMs.Click here for details

Free Access to any Bank's ATM The next time you want to withdraw cash from your ICICI Bank account, just walk into any bank's ATM and use your ICICI Bank ATM-cumDebit card for as many as 9 free transactions (including cash withdrawal and balance enquiry) in a quarter. This offer is available to customers who maintain more than Rs.25,000 in a given quarter in their domestic Savings Account with ICICI Bank. The above benefit can be availed in the next quarter.

Anywhere Banking - This facility entitles the account holder to withdraw or deposit cash upto a limit of Rs.50,000 across all ICICI Bank branches.

You can give us various types of standing instructions like transferring to fixed deposit accounts at regular intervals.

An average quarterly balance of Rs 5,000 only.

Minimum Balance

Type of Account


Savings Account

Rs 5,200

Non-maintenance of the minimum average quarterly balance attracts a fee of Rs 750 per quarter. Nomination

The facility of Nomination is available for relationships in the names of individuals. Unless otherwise specifically, given in writing by depositors, nomination in deposit accounts will be at Customer ID level

A depositor(s) however has / have the right to specify different nominations at account level by completing the appropriate forms.

Further, the applicant(s) is / are at liberty to change the nominee during the currency of the relationship accounts with the Bank through declaration to that effect in the appropriate form

A. Repatriable Repatriable funds (i.e. those which can be taken abroad) need to be kept in a separate bank account, i.e. NRE Bank account. Typically, funds brought in from abroad are permitted in such an account. Investments made from such funds can be repatriated, i.e. proceeds from sale or otherwise from such investments can be taken abroad. Such investments are maintained in a Repatriable Demat account.

B. Non-repatriable Non-repatriable funds (i.e. those which cannot be taken abroad) need to be kept separate from repatriable funds in a separate bank account i.e. NRO Bank account. Investments made from such funds cannot be repatriated, i.e. proceeds from sale or otherwise from such investments cannot be taken abroad. Such investments are maintained in a Non-Repatriable Demat account. Money once transferred from NRE account to NRO account loses its repatriability and hence, cannot be transferred back to NRE account.

Mode of Investment : A. Portfolio Investment Scheme (PINS) Portfolio Investment Scheme (PINS) is a scheme of the Reserve Bank of India (RBI) under which the 'Non Resident Indians (NRIs)' and 'Person of Indian Origin (PIOs )' can purchase and sell shares and convertible debentures of Indian Companies on a recognized stock exchange in India by routing all such purchase/sale transactions through their account held with a Designated Bank Branch . The Designated Bank maintains a record of all investments done under PINS (PINS portfolio). B. Non - PINS Any investment other than under PINS is Typically, this includes: 1. Subscription to Primary market offerings (IPOs) 2. Investments made when resident in India. 3. Investments in Mutual funds

4. Investments in derivatives 5. Gifts and Inheritance Deciding Combination : You may have to open demat accounts of a specific combination if you already hold physical shares in that combination. The physical shares can be converted into electronic form in your demat account by submitting the certificates along with a demat request form. You should also open the required combination under the correct type of demat account : PINS NRE : For shares acquired earlier under PINS on repatriation basis.

PINS NRO : For shares acquired earlier under PINS on non-repatriation basis. Non-PINS NRE : For shares acquired earlier other than under PINS on repatriation basis. Non-PINS NRO : For shares acquired earlier other than under PINS on non-repatriation basis and also when 'Resident' in India. I. Terms & Conditions for establishing relationship and Operating Accounts (For Resident Individuals) 1. Establishing a Relationship 1.1 Applicant(s) desiring to open a Relationship need(s) to sign a Relationship form and declare therein that he/she/they has/have agreed to abide by the rules which are in force from time to time. 1.2 Applicant is required to furnish Identity Proof and Address proof as follows while establishing a banking relationship with the Bank :

Identity Proof Verified true copy of valid passport Letter from existing bank Valid driving license Valid employee identity card Valid PAN card Valid photo credit card along with the current billing cycle (latest) statement True copy of valid arms license issued by Govt of India/State govts/Union territory with photograph Valid pension book Valid freedom fighter's pass issued Home Ministry of Government of India




It is India's largest bank with assets worth Rs.2, 615 billion. SBI also has the distinction of having the worlds largest branch network of 9,000 branches. The bank has a share of about 22% of India's loans and deposits, and is a top player in trade finance and forex. Through its subsidiaries, SBI is also a leading provider of other financial products like mutual funds, investment banking, housing finance and factoring. SBI has a market share of one-fifth of the banking sector in India. Nationalized banks and SBI and its subsidiaries form the heart of the Indian banking system. These two entities operate 70% of the total branches spread across the length and breadth of India. BANK OF INDIA As one of the leading public sector Indian banks, Bank of India has the distinction of being the first bank to open a branch outside India. The bank, which currently has overseas operations in about 10 countries, is one of the leaders in financing foreign trade. It is one of the few


Indian banks that provide tele-banking facilities, Remote Access Terminals for corporate clients, and Signature Retrieval System. Some of the recent forays made by the bank in terms of its business operations include bullion business and demat services.

It is a pioneer in terms of the introduction and adoption of a model banking policy that suits India and other developing countries. The bank, which is synonymous with progressive banking in India, has a strong presence in rural India. The bank was nationalized in 1969. Syndicate Bank has correspondent relations with 400 banks from all over the globe. The bank is also one of the leading players in the foreign exchange market. Citibank, idbi, hdfc,hsbc CHALLENGE FOR THE INDIAN BANKING SECTOR Indian banks have a long way to go before they reach the size of their international counterparts. Even the biggest Indian bank, State Bank of India, is nowhere on the international scale, with assets in the range of $50billion. Absence of significant scale benefits and higher implicit costs of several services are perpetuating the poor ranking of Indian banks in the international league tables. Shareholding structure, government regulations and sheer size of the country ensure that the existence of Indian banks is not at stake at this stage. What is at stake is the banking support that is available for Indian economic activity, and thereby the international competitiveness


of various sectors. What is also at stake is the scope for the banking industry to earn superior returns through differentiated wider services. Further, it is quite conceivable that with passage of time, as government holding in banks is progressively divested, regulatory authorities will be unable to hold back the international giants from buying out Indian banks. Even economies with a "domestic mindset", such as France and Germany, have been forced to bow before the international capital market forces. It would be a shame if painstakingly built retail strength is offered on a platter to some predator. The challenge can be met through some concerted action -

Government The Government needs to do away with artificial fragmentation of the financial sector. A case in point is the segregation of banks and financial institutions induced by policy. If this is changed, we may well see mergers between the two sectors to create organizations of size. Why not a merger of Industrial Development Bank of India with Bank of Baroda, or even better with State Bank of India? This would definitely lead to a merger between ICICI and ICICI Bank and for that matter between HDFC and HDFC Bank. The possibilities are interesting and numerous.

Domestic Banks


Domestic Banks - private as well as public - need to continuously explore options to acquire or merge with other institutions to enhance their size, service or skill-set. This could also mean looking beyond the national boundaries as truly global corporations do.

New Initiatives The recent crisis in the Far East has demonstrated the need for a robust banking sector. Therefore the whole structure of Regional Rural Banks (RRBs) and Urban Co-operative Banks (UCBs) needs to be strengthened. The focus that FMCG companies such as Hindustan Lever have given to the rural sector proves that private sector interest is not limited to the cities and major towns. Technological changes (such as wireless communication, net etc.) have drastically changed the communications scenario. This may be the time to come out with interesting initiatives with regard to structure of RRBs and UCBs so that private sector organizations - banks as well as non-banks - play a greater role in meeting the needs and aspirations of hitherto neglected parts of the country.

Social considerations The full benefit of mergers can only be realized if they are followed up with some hard measures such as re-location / closure of branches, rationalization of employee strength etc.

It would be a welcome change if the management and unions collaborate in seeking appropriate social security from the Government - financed out of the divestment of stake in these banks. Indian banking has to operate with a global mindset even while fulfilling local banking requirements. By joining in the effort to make this happen, we will get the banking service we need. Else, we will deserve the banking service we get.