Introduction of ICICI Bank MBA Project Report

INTRODUCTION OF ICICI BANK

Financial services and wide range of banking products are offered by
ICICI Group and retail customers through a variety of delivery channels and
through its specialized group companies, subsidiaries and affiliates in the
areas of personal banking, investment banking, life and general insurance,
venture capital and asset management. In their respective sectors ICICI Group
companies have enhanced and maintained their leadership position with the
support of strong customer focus.

Second largestIndia’s bank is ICICI with the total assets of Rs.

3,793.01 billion (US$ 75 billion) at March 31, 2009 and for the year ended
March 31, 2009 profit after tax is Rs. 37.58 billion. InIndia, the ICICI bank has
a network of 1,451 branches and total ATM’s are 4,721 and existed in 18
countries.

HISTORY
1955:
The government ofIndiaand representatives of Indian industry, the
Industrial Credit and Investment Corporation of India Limited (ICICI) is
incorporated at the initiative of the World Bank. In order to provide the
medium and long term project financing to Indian businesses development
financial institutions are created. First chairman of ICICI limited is
Mr.A.Ramaswami Mudaliar.

ICICI emerges as the major source of foreign currency loans to Indian

industry. In the Indian companies, ICICI is the first company for increasing
the funds from international markets besides funding from the World Bank
and other multi-lateral agencies.

1956:
ICICI stated that its first share is 3.5%.

Business:
 In 1994 through ICICI Ltd., Indian development financial institution,
ICICI bank was advanced. Among all private banks ICICI bank has to develop
into largest commercial bank so consequently two entities are combined. In
the second half of nineties to beat the Indian banking industry, with new
technologies ICICI bank which is a new generation bank is in progress. VSAT
technology is used in network along with systems and state-of-the-art
technology in ICICI bank branches, these branches are automated fully.

With SWIFT International network, bank is having relation and network of

ICICI bank is extended in 2005 as 1,910 ATMs and 562 branches. Some of the
electronic channels like call centers and ATMs, internet banking, mobile
banking are increased and for these channels number of customer
transactions are transferred then more than 70% of customer transactions are
happening.

To increase deposit franchise overseas and corporate business a small Russian

banking entity, Investitsionno-Kreditny Bank (IKB) is obtained by ICICI bank.
Through DBS inSingapore, Lloyds TSB inUKand Wells Fargo inUSAbanks,
ICICI bank is having a number of dealings.

 To do mutual business, ICICI planned to deal with prudential plc. OfUK.

Through Prudential ICICI Trust Limited and Prudential ICICI Asset
Management Company duo is moderately insistent. Towards the Indian
agricultural sector, to offer services ICICI bank is ready. By means of large
agriculture markets, in place more than 70 agri-desks and 2000 Internet
kiosks are started.

Developments:
 ‘Mutual Fund Sweep Account’ is started by ICICI Bank- Since to receive higher
income, parking their short-term excess into liquid mutual funds when
existing account holders are permitted by automatic sweeping facility. During
GIC Mutual Fund and Prudential ICICI Asset Management Companies liquid
fund schemes to invest an excess account, present account customers of ICICI
bank are having ability.
 In ICICI, ICICI Capital Services Limited and ICICI Personal Financial Services
Limited are two combined wholly-owned subsidiaries, these two subsidiaries
are in progress with ICICI bank.
 Towards Rs.500 crore CD (Certificates of deposit) programme of IBL (ICICI
Bank Ltd), the short-term of safety is represented as A1+rating it is allocated
by ICRA.
 To start the credit cards of ICICI Bank Master Card, MasterCard International
is occupying ICICI Bank. About 4, 50,000 debit cards of ICICI bank are
situated where as 5, 50,000 credit cards are situated at present. In market
main card issuer is ICICI bank. For every month by rate 1, 00,000, debit and
credit cards are added by bank. The debit card business is the latest one where
as credit card business is started 2 years back by bank.

At the end of December 31, 2009 profit is Rs. 30.19 billion (US$ 648.8
billion) for nine months after tax, for total resources of Rs. 3, 562, 28 billion
(US$ 77 billion) at December 31, 2009 thereforeIndia’s second-largest bank is
ICICI. 4,883 ATMs and 1,646 branches network in banks, inIndiaand at
present in 18 countries. During specialized subsidiaries and variety of delivery
channels, for retail customers and corporate customers an open series of
financial services and banking products are presented by ICICI and in regions
like asset management and venture capital, investment banking, life and non-
life insurance it is joined.

Technology:
In an extremely automated environment the HDFC bank functions in terms of
communication systems and information technology. Towards its customers
this bank is allowed to present transfer facilities of speedy funds, because
every branch of this bank contains online connectivity. To deal with customers
through the Automated Teller Machines (ATMs) and branch network, a multi-
branch access is also offered.

In order to gain the best technology which is available internationally so as to

create infrastructure for a world class bank, considerable investments and
efforts were made by the bank. Through robust and scalable systems, the
business of the bank is sustained which makes sure that the clients are always
provided with supreme services.

In the internet and technology, the bank has prioritized its commitment as
one of its major aims and also in web-enabling its core business an important
progress has been already made. To produce a build market share and
competitive advantage, the bank has been successful in influencing its market
position, in all of its business.

In association with the VISA (VISA Electron) an International Debit Card

is launched and as well as issues the Master card Maestro debit card by the
first bank inIndiawhich is HDFC Bank. In late 2001, HDFC launched its
credit card business. A total card base (credit and debit cards) HDFC bank
crosses over 13 million by the end of the March 2009.

The Bank is also one of the leading players in the “merchant acquiring”
business with over 70,000 Point-of-sale (POS) terminals for debit / credit
cards acceptance at merchant establishments. The Bank is well positioned as a
leader in various net based B2C opportunities including a wide range of
internet banking services for Fixed Deposits, Loans, Bill Payments, etc.

CATEGORIESMBA PROJECTS, MBA SEMINAR TOPICS

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CICI Bank Limited (Industrial Credit and Investment Corporation of India) is

an Indianmultinational banking and financial servicescompany headquartered
in Mumbai, Maharashtra with its registered office in Vadodara, Gujarat. As of 2018, ICICI Bank is the
second largest bank in India in terms of assets and market capitalisation. It offers a wide range of
banking products and financial services for corporate and retail customersthrough a variety of
delivery channels and specialised subsidiaries in the areas of investment banking, life, non-life
insurance, venture capital and asset management. The bank currently has a network of 4867
branches and 14367 ATMs across India and has a presence in 17 countries including India.[4]
ICICI Bank is one of the Big Four banks of India.[5] The bank has subsidiaries in the United Kingdom
and Canada; branches in United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar, Oman,
Dubai International Finance Centre, China[6] and South Africa; [7]and representative offices in United
Arab Emirates, Bangladesh, Malaysia and Indonesia. The company's UK subsidiary has also
established branches in Belgium and Germany.[8]
 Contents

 1History
 2Acquisitions
 3Role in Indian financial infrastructure
 4Products
 5Subsidiaries
o 5.1Domestic
o 5.2International
 6Controversies
o 6.1Chanda Kochhar fraud case
o 6.2Inhumane debt recovery methods
o 6.3Money laundering allegations
 7Awards and Achievements of ICICI
 8See also
 9References
 10External links

History[edit]
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. 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.[9][10] The bank was founded 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.[11]
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.[12] 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.[13]
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.[14]
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.[15]
In 2008, following the 2008 financial crisis, customers rushed to ICICI ATMs and branches in some
locations due to rumours of an adverse financial position of ICICI Bank. The Reserve Bank of India
issued a clarification on the financial strength of ICICI Bank to dispel the rumours.[16]

Acquisitions[edit]
 1996: ICICI Ltd. A diversified financial institution with headquarters in Mumbai[17]
 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.[18]
 1998: Anagram(ENAGRAM) 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.[19]
 2001: Bank of Madurai[20]
 2002: The Darjeeling and Shimla branches of Grindlays Bank[21]
 2005: Investitsionno-Kreditny Bank (IKB), a Russian bank [22]
 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.[23]
 2010: The Bank of Rajasthan (BOR) was acquired by the ICICI Bank in 2010 for ₹30 billion. RBI
was critical of BOR's promoters not reducing their holdings in the company. BOR has since been
merged with ICICI Bank.[17]

Role in Indian financial infrastructure[edit]

The bank has contributed to the set-up of a number of Indian institutions to establish financial
infrastructure in the country over the years:

 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.[24]
 In 1987, ICICI Ltd along with UTI set up CRISIL as India's first professional credit rating
agency.[25]
 NCDEX was 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.[26]
 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 underbanked population of the country. Using technologies like smart cards, biometricsand
a basket of support services, FINO enables financial institutions to conceptualise, develop and
operationalise projects to support sector initiatives in microfinance and livelihoods.[27]
 Entrepreneurship Development Institute of India (EDII), 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 organisation committed to entrepreneurship development,
education, training and research.[28]
 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.[29]
 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. 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 maximisation of recovery.[30][31]
 ICICI Bank has 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 contains
the credit history of commercial and consumer borrowers) to its members in the form of credit
information reports.[32]

Products[edit]
ICICI Bank offer products and services like online money transfer & tracking service, loans,
automated lockers, credit card, debit card and digital wallet.[33]

Subsidiaries[edit]
Domestic[edit]
 ICICI Prudential Life Insurance Company Limited
 ICICI Lombard General Insurance Company Limited
 ICICI Prudential Asset Management Company Limited
 ICICI Prudential Trust Limited
 I