INTRODUCTION OF INDIAN BANKING INDUSTRY

Banking in India originated in the first decade of 18th century with The General Bank
of India coming into existence in 1786. This was followed by Bank of Hindustan.
Both these banks are now defunct. The oldest bank in existence in India is the State
Bank of India being established as "The Bank of Bengal" in Calcutta in June 1806. A
couple of decades later, foreign banks started their Calcutta operations in the 1850s.
At that point of time, Calcutta was the most active trading port, mainly due to the
trade of the British Empire, and due to which banking activity took roots there and
prospered. The first fully Indian owned bank was the Allahabad Bank, which was
established in 1865.

By the 1900s, the market expanded with the establishment of banks such as Punjab
National Bank, in 1895 in Lahore and Bank of India, in 1906, in Mumbai - both of
which were founded under private ownership. The Reserve Bank of India formally
took on the responsibility of regulating the Indian banking sector from 1935. After
India's independence in 1947, the Reserve Bank was nationalized and given broader
powers.

At the end of late-18th century, there were hardly any bank in India in the modern
sense of the term. At the time of the American Civil War, a void was created as the
supply of cotton to Lancashire stopped from the Americas. Some banks were opened
at that time which functioned as entities to finance industry, including speculative
trades in cotton. With large exposure to speculative ventures, most of the banks
opened in India during that period could not survive and failed. The depositors lost
money and lost interest in keeping deposits with banks. Subsequently, banking in
India remained the exclusive domain of Europeans for next several decades until the
beginning of the 20th century.The Bank of Bengal, which later became the State Bank
of India.

History Of Banking In India

Without a sound and effective banking system in India it cannot have a healthy
economy. The banking system of India should not only be hassle free but it should be

1
able to meet new challenges posed by the technology and any other external and
internal factors.
For the past three decades India's banking system has several outstanding
achievements to its credit. The most striking is its extensive reach. It is no longer
confined to only metropolitans or cosmopolitans in India. In fact, Indian banking
system has reached even to the remote corners of the country. This is one of the main
reason of India's growth process.
The government's regular policy for Indian bank since 1969 has paid rich dividends
with the nationalization of 14 major private banks of India.
Not long ago, an account holder had to wait for hours at the bank counters for getting
a draft or for withdrawing his own money. Today, he has a choice. Gone are days
when the most efficient bank transferred money from one branch to other in two days.
Now it is simple as instant messaging or dial a pizza. Money has become the order of
the day.
The first bank in India, though conservative, was established in 1786. From 1786 till
today, the journey of Indian Banking System can be segregated into three distinct
phases. They are as mentioned below:
Early phase from 1786 to 1969 of Indian Banks
Nationalization of Indian Banks and up to 1991 prior to Indian banking sector
Reforms.
New phase of Indian Banking System with the advent of Indian Financial & Banking
Sector Reforms after 1991.
The first bank in India, though conservative, was established in 1786. From 1786 till
today, the journey of Indian Banking System can be segregated into three distinct
phases. They are as mentioned below:

 PHASE I - Early phase from 1786 to 1969 of Indian Banks

 PHASE II - Nationalization of Indian Banks and up to 1991
 PHASE III - Indian Financial & Banking Sector Reforms after 1991.
 PHASE I:
The General Bank of India was set up in the year 1786. Next came Bank of Hindustan
and Bengal Bank. The East India Company established Bank of Bengal (1809), Bank
of Bombay (1840) and Bank of Madras (1843) as independent units and called it

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Presidency Banks. These three banks were amalgamated in 1920 and Imperial Bank
of India was established which started as private shareholders banks, mostly
Europeans shareholders. During the first phase the growth was very slow and banks
also experienced periodic failures between 1913 and 1948. There were approximately
1100 banks, mostly small. To streamline the functioning and activities of commercial
banks, the Government of India came up with The Banking Companies Act, 1949
which was later changed to Banking Regulation Act 1949 as per amending Act of
1965 (Act No. 23 of 1965). Reserve Bank of India was vested with extensive powers
for the supervision of banking in India as the Central Banking Authority. During those
day’s public has lesser confidence in the banks. As an aftermath deposit mobilization
was slow. Abreast of it the savings bank facility provided by the Postal department
was comparatively safer. Moreover, funds were largely given to the traders.
 PHASE II:
Government took major steps in this Indian Banking Sector Reform after
independence. In 1955, it nationalized Imperial Bank of India with extensive banking
facilities on a large scale especially in rural and semi-urban areas. Second phase of
nationalization Indian Banking Sector Reform was carried out in 1980 with seven
more banks. This step brought 80% of the banking segment in India under
Government ownership.
The following are the steps taken by the Government of India to Regulate Banking
Institutions in the Country:

 1949: Enactment of Banking Regulation Act.

 1955: Nationalization of State Bank of India.
 1959: Nationalization of SBI subsidiaries.
 1961: Insurance cover extended to deposits.
 1969: Nationalization of 14 major banks.
 1971: Creation of credit guarantee corporation.
 1975: Creation of regional rural banks.
 1980: Nationalization of seven banks with deposits over 200 crore.
After the nationalization of banks, the branches of the public sector bank India
raised to approximately 800% in deposits and advances took a huge jump by
11,000%.Banking in the sunshine of Government ownership gave the public

3
 implicit faith and immense confidence about the sustainability of these
institutions.

 PHASE III
This phase has introduced many more products and facilities in the banking
sector in its reforms measure. In 1991, under the chairmanship of M
Narasimham, a committee was set up by his name which worked for the
liberalization of banking practices.
The country is flooded with foreign banks and their ATM stations. Efforts are
being put to give a satisfactory service to customers. Phone banking and net
banking is introduced. The entire system became more convenient and swift.
The financial system of India has shown a great deal of resilience. It is
sheltered from any crisis triggered by any external macroeconomics shock as
other East Asian Countries suffered. This is all due to a flexible exchange rate
regime, the
foreign reserves are high, the capital account is not yet fully convertible, and
banks and their customers have limited foreign exchange exposure.

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

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 Number of banks Authorized capital Paid-up Capital
Years
that failed (Rs. Lakes) (Rs. Lakes)
1913 12 274 35
1914 42 710 109
1915 11 56 5
1916 13 231 4
1917 9 76 25
1918 7 209 1

POST-INDEPENDENCE

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

1. In 1948, the Reserve Bank of India, India's central banking authority, was
nationalized, and it became an institution owned by the Government of India.
2. In 1949, the Banking Regulation Act was enacted which empowered the Reserve
Bank of India (RBI) "to regulate, control, and inspect the banks in India."
3. The Banking Regulation Act also provided that no new bank or branch of an
existing bank may be opened without a license from the RBI, and no two banks
could have common directors.

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

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NATIONALISATION

By the 1960s, the Indian banking industry has become an important tool to facilitate
the development of the Indian economy. At the same time, it has emerged as a large
employer, and a debate has ensued about the possibility to nationalize the banking
industry. Indira Gandhi, the-then Prime Minister of India expressed the intention of
the GOI in the annual conference of the All India Congress Meeting in a paper
entitled "Stray thoughts on Bank Nationalization." The paper was received with
positive enthusiasm. Thereafter, her move was swift and sudden, and the GOI issued
an ordinance and nationalized the 14 largest commercial banks with effect from the
midnight of July 19, 1969. Jayaprakash Narayan, a national leader of India, described
the step as a "masterstroke of political sagacity." Within two weeks of the issue of the
ordinance, the Parliament passed the Banking Companies (Actuation and Transfer of
Undertaking) Bill, and it received the presidential approval on 9th August, 1969.

A second dose of nationalization of 6 more commercial banks followed in 1980. The

stated reason for the nationalization was to give the government more control of credit
delivery. With the second dose of nationalization, the GOI controlled around 91% of
the banking business of India.

After this, until the 1990s, the nationalized banks grew at a pace of around 4%, closer
to the average growth rate of the Indian economy.

1955 : Nationalization of State Bank of India.

1959 : Nationalization of SBI subsidiaries.
1969 : Nationalization of 14 major banks.
1980 : Nationalisation of seven banks with deposits over 200 crores.

LIBERALISATION

In the early 1990s the then Narasimha Rao government embarked on a policy of
liberalization and gave licenses to a small number of private banks, which came to be
known as New Generation tech-savvy banks, which included banks such as UTI
Bank(now re-named as Axis Bank) (the first of such new generation banks to be set
up), ICICI Bank and HDFC Bank. This move, along with the rapid growth in the

6
economy of India, kick started the banking sector in India, which has seen rapid
growth with strong contribution from all the three sectors of banks, namely,
government banks, private banks and foreign banks.

The next stage for the Indian banking has been setup with the proposed relaxation in
the norms for Foreign Direct Investment, where all Foreign Investors in banks may be
given voting rights which could exceed the present cap of 10%, at present it has gone
up to 49% with some restrictions.

The new policy shook the Banking sector in India completely. Bankers, till this time,
were used to the 4-6-4 method (Borrow at 4%; Lend at 6%; Go home at 4) of
functioning. The new wave ushered in a modern outlook and tech-savvy methods of
working for traditional banks. All this led to the retail boom in India. People not just
demanded more from their banks but also received more.

INTRODUCTION OF BANKING

MEANING AND DEFINITION:

Bank is an institution that deals in money and its substitutes and provides
crucial financial services. The principal type of baking in the modern industrial world
is commercial banking & central banking.

Banking Means "Accepting Deposits for the purpose of lending or Investment

of deposits of money from the public, repayable on demand or otherwise and
withdraw by cheque, draft or otherwise."
-Banking Companies (Regulation) Act,1949
The concise oxford dictionary has defined a bank as "Establishment for
custody of money which it pays out on customers order." In fact this is the function
which the bank performed when banking originated.
"Banking in the most general sense, is meant the business of receiving,
conserving & utilizing the funds of community or of any special section of it."
-By H. Wills & J. Bogan

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 "A banker of bank is a person, a firm, or a company having a place of business
where credits are opened by deposits or collection of money or currency or where
money is advanced and waned.
Thus,
A Bank :
 Accept deposits of money from public,
 Pays interest on money deposited with it.
 Lends or invests money
 Repays the amount on demand,
 Allow the money deposited to be withdrawn by cheque or draft.

Banks have played a pivotal role in the process of development of the district over the
years, especially after the formation of the district in 1993. Apart from dispensing
credit, the Banks have also brought about social changes. The contribution of the
banking sector in the field of overall development of the district is elaborated in the
following paragraphs.

At the beginning of the 20th century, Indian economy was passing through a relative
period of stability. Around five decades have elapsed since the India's First war of
Independence, and the social, industrial and other infrastructure have developed. At
that time there were very small banks operated by Indians, and most of them were
owned and operated by particular communities. The banking in India was controlled
and dominated by the presidency banks, namely, the Bank of Bombay, the Bank of
Bengal, and the Bank of Madras - which later on merged to form the Imperial Bank of
India, and Imperial Bank of India, upon India's independence, was renamed the State
Bank of India. There were also some exchange banks, as also a number of Indian joint
stock banks. All these banks operated in different segments of the economy.

The presidency banks were like the central banks and discharged most of the
functions of central banks. They were established under charters from the British East
India Company. The exchange banks, mostly owned by the Europeans, concentrated
on financing of foreign trade. Indian joint stock banks were generally undercapitalized
and lacked the experience and maturity to compete with the presidency banks, and the
exchange banks. There was potential for many new banks as the economy was

8
 growing. Lord Carson had observed then in the context of Indian banking: "In respect
of banking it seems we are behind the times. We are like some old fashioned sailing
ship, divided by solid wooden bulkheads into separate and cumbersome
compartments.”

Under these circumstances, many Indians came forward to set up banks, and many
banks were set up at that time, a number of which have survived to the present such as
Bank of India and Corporation Bank, Indian Bank, Bank of Baroda, and Canara Bank.

Indian banking sector can be divided mainly into four broad categories namely public
sector Banks, old private sector banks, new private sector banks, and foreign banks.
The other categories of banks include co-operative banks and regional rural banks.
Since these banks don’t form a substantial chunk of the banking system, we will focus
on the first four categories.

BANKING SYSTEM IN INDIA

BANKS IN INDIA

CENTRAL BANK NATIONALISED PRIVATE BANKS FOREIGN BANKS

BANK
BANKS

CENTRAL BANK: RESERVE BANK OF INDIA

NATIONALISED BANK IN INDIA

The Banking System in India is dominated by nationalized banks. The Nationalization

of Banks in India took place in 1969 by Mrs. Indira Gandhi the then Prime Minister.

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The major objective Behind Nationalization Banks was to spread banking
Infrastructure in Rural areas and make available cheap finance to Indian farmers.
Fourteen banks were nationalized in 1969. These Banks were

 State Bank of India

 Allahabad Bank
 Andhra Bank
 Bank of Baroda
 Bank of India
 Bank of Maharashtra
 Canara Bank
 Central Bank of India
 Corporation Bank
 Dena Bank
 Indian Bank
 Indian Overseas Bank
 Oriental Bank of Commerce
 Punjab & Sind Bank
 Punjab National Bank
 Syndicate Bank
 Union Bank of India

PRIVATE BANK IN INDIA

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

 Axis Bank
 Bharat Overseas Bank
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 Catholic Syrian Bank
 Centurion Bank of Punjab
 City Union Bank
 Development Credit Bank
 Dhanalakshmi Bank
 Federal Bank
 Ganesh Bank of Kurundwad
 HDFC Bank
 ICICI Bank
 IDBI Bank
 IndusInd Bank
 ING Vysya Bank
 Jammu & Kashmir Bank
 Karnataka Bank Limited
 KarurVysya Bank
 Kotak Mahindra Bank
 Lakshmi Vilas Bank
 Lord Krishna Bank
 Nainital Bank
 Ratnakar Bank
 SBI Commercial and International Bank

FOREIGN BANKS IN INDIA

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

 Standard charted Bank

 Deutsche Bank
 Bank of America

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 Citi Bank
 ABN Amro Bank
 HSBC Bank

FUNCTIONS OF BANKS

PRIMARY FUNCTIONS

 Acceptance of Deposits
 Making loans & advances
 Loans
 Overdraft
 Cash Credit
 Discounting of bills of exchange
SECONDARY FUNCTIONS
 Agency functions
 Collection of cheques& Bills etc.
 Collection of interest and dividends.
 Making payment on behalf of customers
 Purchase & sale of securities
 Facility of transfer of funds
 To act as trustee & executor.
UTILITY FUNCTIONS :
 Safe custody of customers valuable articles & securities.
 Underwriting facility
 Issuing of traveler’s cheque letter of credit
 Facility of foreign exchanges
 Providing trade information
 Provide information regarding credit worthiness of their customer.
CLASSIFICATION OF BANKS
CLASSIFICATION ON BASIS OF OWNERSHIP
On the basis of ownership banks are of the following types :

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1. PUBLIC SECTOR BANK
Public sector banks are those banks which are owned by the Government. The
Govt. runs these Banks. In India 14 banks were nationalized in 1969 & in
1980 another 6 banks were also nationalized. Therefor in 1980 the number of
nationalized bank 20. But at present there are 9 banks are nationalized. All
these banks are belonging to public sector category. Welfare is their principle
objective.
2. PRIVATE SECTOR BANKS
These banks are owned and run by the private sector. Various banks in the
country such as ICICI Bank, HDFC Bank etc. An individual has control over
their banks in preparation to the share of the banks held by him.
3. CO-OPERATIVE BANKS
Co-operative banks are those financial institutions. They provide short term &
medium term loans to their members. Co-operative banks are in every state in
India. Its branches at district level are known as the central co-operative bank.
The central co-operative bank in turn has its branches both in the urban &
rural areas. Every state co-operative bank is an apex bank which provides
credit facilities to the central co-operative bank. It mobilized financial
resources from richer section of urban population by accepting deposit and
creating the credit like commercial bank and borrowing from the money mkt.
It also gets funds from RBI.

ii ACCORDING TO RESERVE BANK OF INDIA ACT 1935

Banks are classified into following two categories son the basis of reserve
bank Act 1934.
1. SCHEDULED BANK
These banks have paid up capital of at least Rs. 5 lacks. These are like a joint
stock company. It is a co-operative organization. These banks find their
mention in the second schedule of the reserve bank.
2. NON SCHEDULED BANK
These banks are not mentioned in the second schedule of reserve bank paid up
capital of these banks is less then Rs.5 lacs. The no. such bank is gradually
tolling in India.

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iii CLASSIFICATION ACCORDING TO FUNCTION
On the basis of functions banks are classified as under :-
1. COMMERCIAL BANKS
The commercial banks generally extend short-term loans to businessmen &
traders. Since their deposits are for a short-period only. They cannot lend
money for a long period. These banks reform various types or agency job for
their customers. These banks are not in a position to grant long-term loans to
industries because their deposits are only for a short period. The majority of
joint stock banks in India are commercial banks which finance trade &
commerce only.
2. SAVING BANKS
The principle function of these banks is to collect small saving across the
country and put them into productive use. These banks have shown marked
development in Germany & Japan. These banks are established in
HAMBURG City of Germany in 1765. In India a department of post offices
functions as a saving banks.
3. FOREIGN EXCHANGE BANKS
These are special types of banks which specialize in financing foreign trade.
Their main function is to make international payments through purchase &
sale of exchange bills. As it well known, the exporters of a country prefer to
receive the payments for exports in their own currency. Thus these banks
convert home currency into foreign currency and vice versa. It is on this
account that these banks have to keep with themselves stock of the currency of
various countries. Along with that, they have to open branches in foreign
countries to carry on their business.
4. INDUSTIRAL BANKS
The industrial banks extends long term loans to industries. In fact, they also
help industrials firms to sell their debentures and shares. Sometimes, they even
underwrite the debentures & shares of big industrial concerns.
5. INDIGENIOUS BANKS
These banks found their origin in India. These banks made a significant
contribution to the development of agricultural and industries before

14
 independence. Mahajans, rural moneylenders have been the forerunner of
these banks in India.
6. CENTRAL BANK
The central bank occupies a pivotal position in the monetary and banking
structure of the country. The central bank is the undisputed leader of the
money market. As such it supervises controls and regulates the activities of
commercial banks affiliated with it. The central bank is also the higher
monetary institution in the country charged with the duty & responsibility of
carrying out the monetary policy formulated by the government. India's central
bank known as the reserve bank of India was set up in 1935.
7. AGRICULTURAL BANK
The commercial and the industrial banks are not in a position to meet the
credit requirements of agriculture. Hence, there arises the need for setting up
special type of banks of finance agriculture. The credit requirements of the
farmers are two types. Firstly the farmers require short term loans to buy
seeds, fertilizers, ploughs and other inputs. Secondly, the farmers require long-
term loans to purchase land, to effect permanent improvements on the land to
buy equipment and to provide for irrigation works. There are two types of
agriculture banks.
1. Agriculture co-operative banks, and
2. Land mortgage banks. The farmer provide short-term credit, while the
letter extend long-term loans to the farmer
Role of Banks:

Banks play a positive role in economic development of a country as

repositories of community’s savings and as purveyors of credit. Indian Banking has
aided the economic development during the last fifty years in an effective way. The
banking sector has shown a remarkable responsiveness to the needs of planned
economy. It has brought about a considerable progress in its efforts at deposit
mobilization and has taken a number of measures in the recent past for accelerating
the rate of growth of deposits. As recourse to this, the commercial banks opened
branches in urban, semi-urban and rural areas and have introduced a number of
attractive schemes to foster economic development.

15
 The activities of commercial banking have growth in multi-directional
ways as well as multi-dimensional manner. Banks have been playing a catalytic role
in area development, backward area development, extended assistance to rural
development all along helping agriculture, industry, international trade in a significant
manner. In a way, commercial banks have emerged as key financial agencies for rapid
economic development.

By pooling the savings together, banks can make available funds to

specialized institutions which finance different sectors of the economy, needing
capital for various purposes, risks and durations. By contributing to government
securities, bonds and debentures of term-lending institutions in the fields of
agriculture, industries and now housing, banks are also providing these institutions
with an access to the common pool of savings mobilized by them, to that extent
relieving them of the responsibility of directly approaching the saver. This
intermediation role of banks is particularly important in the early stages of economic
development and financial specification. A country like India, with different regions
at different stages of development, presents an interesting spectrum of the evolving
role of banks, in the matter of inter-mediation and beyond.

Mobilization of resources forms an integral part of the development

process in India. In this process of mobilization, banks are at a great advantage,
chiefly because of their network of branches in the country. And banks have to place
considerable reliance on the mobilization of deposits from the public to finance
development programmes. Further, deposit mobalization by banks in India acquired
greater significance in their new role in economic development.

Commercial banks provide short-term and medium-term financial assistance. The

short-term credit facilities are granted for working capital requirements. The medium-
term loans are for the acquisition of land, construction of factory premises and
purchase of machinery and equipment. These loans are generally granted for periods
ranging from five to seven years. They also establish letters of credit on behalf of their
clients favoring suppliers of raw materials/machinery (both Indian and foreign) which
extend the banker’s assurance for payment and thus help their delivery. Certain
transaction, particularly those in contracts of sale of Government Departments, may

16
require guarantees being issued in lieu of security earnest money deposits for release
of advance money, supply of raw materials for processing, full payment of bills on the
assurance of the performance etc. Commercial banks issue such guarantees also.

The Role of Reserve Bank of India (RBI) – Banker’s Bank:

The Reserve Bank of India (RBI) is the central bank of

India, and was established on April 1, 1935 in accordance with the provisions of the
Reserve Bank of India Act, 1934. Since its inception, it has been headquartered in
Mumbai. Though originally privately owned, RBI has been fully owned by the
Government of India since nationalization in 1949.

RBI is governed by a central board (headed by a Governor) appointed

by the Central Government. The current governor of RBI is Dr.Y.Venugopal Reddy
(who succeeded Dr. VimalJalan on September 6, 2003). RBI has 22 regional offices
across India. The Reserve Bank of India was set up on the recommendations of the
Hilton Young Commission. The commission submitted its report in the year 1926,
though the bank was not set up for nine years.

Main Objective:

Monetary Authority

 Formulates, implements and monitors the monetary policy.

 Objective: maintaining price stability and ensuring adequate flow of credit to
productive sectors.
 Regulator and supervisor of the financial system
 Prescribes broad parameters of banking operations within which the country’s
banking and financial system functions.
 Objective: maintain public confidence in the system, protect depositors’
interest and provide cost-effective banking services to the public. The Banking
Ombudsman Scheme has been formulated by the Reserve Bank of India (RBI)
for effective redressal of complaints by bank customers

Manager of Exchange Control

 Manages the Foreign Exchange Management Act, 1999.

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

Issuer of currency
 Issues and exchanges or destroys currency and coins not fit for circulation.
 Objective: to give the public adequate quantity of supplies of currency notes
and coins and in good quality.

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

Related Functions
 Banker to the Government: performs merchant banking function for the
central and the state governments; also acts as their banker.
 Banker to banks: maintains banking accounts of all scheduled banks.
 Owner and operator of the depository (SGL) and exchange (NDS) for
government bonds.

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

Supervisory Functions:In addition to its traditional central functions, the Reserve

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

18
great deal in improving the standard of banking in India to develop on sound lines and
to improve the methods of their operation.

Promotional Functions:

With economic growth assuming a new urgency since Independence,

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

PRODUCTS AND SERVICES OFFERED BY BANKS

Broad Classification of Products in a bank:

The different products in a bank can be broadly classified into:

 Retail Banking.
 Trade Finance.
 Treasury Operations.

19
Retail Banking and Trade finance operations are conducted at the branch level while
the wholesale banking operations, which cover treasury operations, are at the hand
office or a designated branch.

Retail Banking:

 Deposits
 Loans, Cash Credit and Overdraft
 Negotiating for Loans and advances
 Remittances
 Book-Keeping (maintaining all accounting records)
 Receiving all kinds of bonds valuable for safe keeping

Trade Finance:

 Issuing and confirming of letter of credit.

 Drawing, accepting, discounting, buying, selling, collecting of bills of
exchange, promissory notes, drafts, bill of lading and other securities.

Treasury Operations:

 Buying and selling of bullion. Foreign exchange

 Acquiring, holding, underwriting and dealing in shares, debentures, etc.
 Purchasing and selling of bonds and securities on behalf of constituents.

The banks can also act as an agent of the Government or local authority. They
insure, guarantee, underwrite, participate in managing and carrying out issue of
shares, debentures, etc.

Apart from the above-mentioned functions of the bank, the bank provides a
whole lot of other services like investment counseling for individuals, short-term
funds management and portfolio management for individuals and companies. It
undertakes the inward and outward remittances with reference to foreign exchange
and collection of varied types for the Government.

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Common Banking Products Available:

Some of common available banking products are explained below:

1) Credit Card: Credit Card is “post paid” or “pay later” card that draws from a
credit line-money made available by the card issuer (bank) and gives one a
grace period to pay. If the amount is not paid full by the end of the period, one
is charged interest.

A credit card is nothing but a very small card containing a means of

identification, such as a signature and a small photo. It authorizes the holder to change
goods or services to his account, on which he is billed. The bank receives the bills
from the merchants and pays on behalf of the card holder.

These bills are assembled in the bank and the amount is paid to the bank by the card
holder totally or by installments. The bank charges the customer a small amount for
these services. The card holder need not have to carry money/cash with him when he
travels or goes for purchasing.

Credit cards have found wide spread acceptance in the ‘metros’ and big cities.
Credit cards are joining popularity for online payments. The major players in the
Credit Card market are the foreign banks and some big public sector banks like SBI
and Bank of Baroda. India at present has about 3 million credit cards in circulation.

2) Debit Cards: Debit Card is a “prepaid” or “pay now” card with some stored value.
Debit Cards quickly debit or subtract money from one’s savings account, or if one
were taking out cash. Every time a person uses the card, the merchant who in turn can
get the money transferred to his account from the bank of the buyers, by debiting an
exact amount of purchase from the card. To get a debit card along with a Personal
Identification Number (PIN).

When he makes a purchase, he enters this number on the shop’s PIN pad.
When the card is swiped through the electronic terminal, it dials the acquiring bank
system – either Master Card or Visa that validates the PIN and finds out from the
issuing bank whether to accept or decline the transaction. The customer never
overspread because the amount spent is debited immediately from the customer’s

21
account. So, for the debit card to work, one must already have the money in the
account to cover the transaction. There is no grace period for a debit card purchase.
Some debit cards have monthly or per transaction fees.

Debit Card holder need not carry a bulky checkbook or large sums of cash
when he/she goes at for shopping. This is a fast and easy way of payment one can get
debit card facility as debit cards use one’s own money at the time of sale, so they are
often easier than credit cards to obtain.

The major limitation of Debit Card is that currently only some 3000-4000
shops country wide accepts it. Also, a person can’t operate it in case the telephone
lines are down.

3) Automatic Teller Machine: The introduction of ATM’s has given the customers
the facility of round the clock banking. The ATM’s are used by banks for making the
customers dealing easier. ATM card is a device that allows customer who has an
ATM card to perform routine banking transaction at any time without interacting with
human teller. It provides exchange services. This service helps the customer to
withdraw money even when the banks ate closed. This can be done by inserting the
card in the ATM and entering the Personal Identification Number and secret
Password.

ATM’s are currently becoming popular in India that enables the customer to
withdraw their money 24 hours a day and 365 days. It provides the customers with the
ability to withdraw or deposit funds, check account balances, transfer funds and check
statement information. The advantages of ATM’s are many. It increases existing
business and generates new business. It allows the customers.

 To transfer money to and from accounts.

 To view account information.
 To order cash.
 To receive cash.

22
Advantages of ATM’s:

To the Customers

 ATM’s provide 24 hrs. 7 days and 365 days a year service.

 Service is quick and efficient
 Privacy in transaction
 Wider flexibility in place and time of withdrawals.
 The transaction is completely secure – you need to key in Personal
Identification Number (Unique number for every customer).

To Banks

 Alternative to extend banking hours.

 Crowding at bank counters considerably reduced.
 Alternative to new branches and to reduce operating expenses.
 Relieves bank employees to focus an more analytical and innovative work.
 Increased market penetration.

ATM’s can be installed anywhere like Airports, Railway Stations, Petrol

Pumps, Big Business arcades, markets, etc. Hence, it gives easy access to the
customers, for obtaining cash.

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

4) E-Cheaques: The e-cheaques consists five primary facts. They are the consumers,
the merchant, consumer’s bank the merchant’s bank and the e-mint and the clearing
process. This cheaquring system uses the network services to issue and process

23
payment that emulates real world chaquing. The payer issues a digital cheaques to the
payee ant the entire transactions are done through internet. Electronic version of
cheaques are issued, received and processed. A typical electronic cheque transaction
takes place in the following manner:

 The customer accesses the merchant server and the merchant server presents
its goods to the customer.
 The consumer selects the goods and purchases them by sending an e-cheque to
the merchant.
 The merchant validates the e-cheque with its bank for payment authorization.
 The merchant electronically forwards the e-cheque to its bank.
 The merchant’s bank forwards the e-cheque to the clearing house for cashing.
 The clearing house jointly works with the consumer’s bank clears the cheque
and transfers the money to the merchant’s banks.
 The merchant’s bank updates the merchant’s account.
 The consumer’s bank updates the consumer’s account with the withdrawal
information.

The e-chequing is a great boon to big corporate as well as small retailers.

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

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

their cheque handling process with computer networks and other electronic
equipments. These banks are dispensing with the use of paper cheques. The system
called electronic fund transfer (EFT) automatically transfers money from one account
to another. This system facilitates speedier transfer of funds electronically from any
branch to any other branch. In this system the sender and the receiver of funds may be
located in different cities and may even bank with different banks. Funds transfer
within the same city is also permitted. The scheme has been in operation since
February 7, 1996, in India.

The other important type of facility in the EFT system is automated clearing houses.
These are the computer centers that handle the bills meant for deposits and the bills

24
meant for payment. In big companies pay is not disbursed by issued cheques or
issuing cash. The payment office directs the computer to credit an employee’s account
with the person’s pay.

6) Telebanking: Telebanking refers to banking on phone services..a customer

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

 To get a particular work done through the bank, the users may leave his
instructions in the form of message with bank.
 Facility to stop payment on request. One can easily know about the cheque
status.
 Information on the current interest rates.
 Information with regard to foreign exchange rates.
 Request for a DD or pay order.
 D-Mat Account related services.
 And other similar services.

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

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

25
 Already ICICI and HDFC banks have tied up cellular service provides such as
Airtel, Orange, Sky Cell, etc. in Delhi and Mumbai to offer these mobile banking
services to their customers.

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

banking products and services. With internet banking is now no longer confirmed to
the branches where one has to approach the branch in person, to withdraw cash or
deposits a cheque or request a statement of accounts. In internet banking, any inquiry
or transaction is processed online without any reference to the branch (anywhere
banking) at any time.

The Internet Banking now is more of a normal rather than an exception due to
the fact that it is the cheapest way of providing banking services. As indicated by
McKinsey Quarterly research, presently traditional banking costs the banks, more
than a dollar per person, ATM banking costs 27 cents and internet banking costs
below 4 cents approximately. ICICI bank was the first one to offer Internet Banking
in India.

Benefits of Internet Banking:

 Reduce the transaction costs of offering several banking services and

diminishes the need for longer numbers of expensive brick and mortar
branches and staff.
 Increase convenience for customers, since they can conduct many banking
transaction 24 hours a day.
 Increase customer loyalty.
 Improve customer access.
 Attract new customers.
 Easy online application for all accounts, including personal loans and
mortgages

Financial Transaction on the Internet:

Electronic Cash: Companies are developing electronic replicas of all existing

payment system: cash, cheque, credit cards and coins.

26
Automatic Payments: Utility companies, loans payments, and other businesses use
on automatic payment system with bills paid through direct withdrawal from a bank
account.

Direct Deposits: Earnings (or Government payments) automatically deposited into

bank accounts, saving time, effort and money.

Stored Value Cards: Prepaid cards for telephone service, transit fares, highway tolls,
laundry service, library fees and school lunches.

Point of Sale transactions: Acceptance of ATM/Cheque at retail stores and

restaurants for payment of goods and services. This system has made functioning of
the stock Market very smooth and efficient.

Cyber Banking: It refers to banking through online services. Banks with web site
“Cyber” branches allowed customers to check balances, pay bills, transfer funds, and
apply for loans on the Internet.

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

process where at the customer’s request the physical stock is converted into electronic
entries in the depository system.

In January 1998 SEBI (Securities and Exchange Board of India) initiated

DEMAT ACCOUNTANCY System to regulate and to improve stock investing. As on
date, to trade on shares it has become compulsory to have a share Demat account and
all trades take place through Demat.

How to Operate DEMAT ACCOUNT?

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

27
 1) If the investor wants to sell his shares, he has to place an order with his broker
and give a “Delivery Instruction” to his DP (Depository Participant). The DP
will debit hi s account with the number of shares sold by him.
2) If one wants to buy shares, he has to inform his broker about his Depository
Account Number so that the shares bought by him are credited in to his
account.
3) Payment for the electronic shares bought or sold is to be made in the same
way as in the case of physical securities.

BANKING SERVICES

Banking covers so many services that it is difficult to define it.

However, these basic services have always been recognized as the hallmark of the
genuine banker. These are…

 The receipt of the customer’s deposits

 The collection of his cheques drawn on other banks
 The payment of the customer’s cheques drawn on himself

There are other various types of banking services like:

1) Advances – Overdraft, Cash Credit, etc.

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

Customer Services in Commercial Banks:

Customer service is the service provided in support of a bank’s core products.

Customer service often includes answering questions; handling complaints. Customer

28
service can occur on site (as when an onstage employee helps a customer or answers a
question) or it can occur over the phone or the Internet. Quality customer service is
essential to building cordial customer relationship.

Banking being a service industry, a lot depends on efficient and prompt

customer service. Customer service is the most important duty of the banking
operations. Prompt and efficient service with smile will develop good public relations
reduce complaints and increase business.

Why is Customer Service Important?

 Changing customer expectations: Today the customer is more demanding

and more sophisticated than he or she was thirty years ago.
 The increased importance of customer service: With changing customer
expectations, competitors are seeing customer service as a competitive weapon
with which they differentiate their products and services.
 The need for a relationship strategy: To ensure that a customer service
strategy that will create a value preposition for customers should be
formulated implemented and controlled. It is necessary to give it a central role
and not one that is subsumed in the various elements of the marketing mix.

The customer is the king pim in growth organizations like commercial

banks. Only those institutions which work according to his dictates will flourish.
Quality, Consistency and Durability at low price are the final expectations of a
customer. Quality will have to be unambiguous, of world class quality. Quality cannot
be of minimum acceptable standards. Customer responsiveness must be quick and
also competent. Speed, performance and cost will be the new values “mantra” for
success.

The ten key areas of customer’s services to be attended timely and

regularly are:

i. Submission of statement of A/Cs to customers

ii. Updating of savings pass books.
iii. Teller system efficiency.

29
 iv. Cleanliness and Upkeep of premises.
v. Intermediate Credit for institution cheques/land bills.
vi. Advance intimation to customers for rewards of Term Deposits Receipts on
maturity.
vii. Advance for Debit/credit to accounts.
viii. Punctuality of staff.

INTRODUCTION OF ICICI BANK

Type Private, BSE & NSE, NYSE

Founded 1955 (as Industrial credit and

Investment corporation of India)

ICICI Bank Ltd.,

Headquarters ICICI Bank Towers,
BandraKurla
Mumbai, India

N Vaghul, K.V. Kamath,

Key people
ChandaKochhar, V Vaidyanathan,
MadhabiPuri

Banking
Industry Insurance
Capital Markets and allied
industries

Products Loans, Credit Cards, Savings,

Investment vehicles, Insurance etc.

30
OVERVIEW

ICICI Bank (formerly Industrial Credit and Investment Corporation of India).

ICICI Limited was established in 1955 by the World Bank, the Government of India
and the Indian Industry, for the promotion of industrial development in India by
giving project and corporate finance to the industries in India.

ICICI Bank has grown from a development bank to a financial conglomerate and has
become one of the largest public financial institutions in India. ICICI Bank has
financed all the major sectors of the economy, covering 6,848 companies and 16,851
projects.

ICICI Bank Fact Files:

Network: 580 branches

ATMs: Over 2000

Abroad Subsidiaries: United Kingdom and Canada

Abroad branches: Singapore and Bahrain

Representative offices: United States, China, United Arab Emirates, and Bangladesh
and South Africa.

ICICI Bank offers a wide range of banking products and financial services to
corporate and retail customers through a variety of delivery channels and through its
specialized subsidiaries and affiliates in the areas of investment banking, life and non-
life insurance, venture capital and asset management. ICICI Bank set up its
international banking group in fiscal 2002 to cater to the cross border needs of clients
and leverage on its domestic banking strengths to offer products internationally.

ICICI Bank (BSE: ICICI) (Industrial Credit and Investment Corporation of

India) is India's largest private sector bank in market capitalization and second largest
overall in terms of assets. Bank has total assets of about USD 100 billion (at the end
of March 2008), a network of over 1,491 branches, 22 regional offices and 49

31
regional processing centers, about 4,485 ATMs (at the end of September 2008), and
24 million customers (at the end of July 2007). ICICI Bank offers a wide range of
banking products and financial services to corporate and retail customers through a
variety of delivery channels and specialized subsidiaries and affiliates in the areas of
investment banking, life and non-life insurance, venture capital and asset
management. (These data are dynamic.) ICICI Bank is also the largest issuer of credit
cards in India. ICICI Bank has got its equity shares listed on the stock exchanges at
Kolkata and Vadodara, Mumbai and the National Stock Exchange of India Limited,
and its ADRs on the New York Stock Exchange (NYSE).

The Bank is expanding in overseas markets and has the largest international balance
sheet among Indian banks. ICICI Bank now has wholly-owned subsidiaries, branches
and representatives offices in 18 countries, including an offshore unit in Mumbai.
This includes wholly owned subsidiaries in Canada, Russia and the UK (the
subsidiary through which the hisave savings brand is operated), offshore banking
units in Bahrain and Singapore, an advisory branch in Dubai, branches in Belgium,
Hong Kong and Sri Lanka, and representative offices in Bangladesh, China, Malaysia,
Indonesia, South Africa, Thailand, the United Arab Emirates and USA. Overseas, the
Bank is targeting the NRI (Non-Resident Indian) population in particular.

ICICI Bank currently has subsidiaries in the United Kingdom, Russia and Canada,
branches in Singapore, Bahrain, Hong Kong, Sri Lanka and Dubai International
Finance Center and representative offices in the United States, United Arab Emirates,
China, South Africa and Bangladesh. Our UK subsidiary has established a branch in
Belgium. ICICI Bank is the most valuable bank in India in terms of market
capitalization.

ICICI Bank's equity shares are listed in India on the Bombay Stock Exchange and
the National Stock Exchange of India Limited and its American Depositary Receipts
(ADRs) are listed on the New York Stock Exchange (NYSE).

ICICI Bank has formulated a Code of Business Conduct and Ethics for its
Directors and employees. At June 5, 2006, ICICI Bank, with free float market
capitalization of about Rs. 480.00 billion (US$ 10.8 billion) ranked third amongst all
the companies listed on the Indian stock exchanges.

32
 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 service group offering a wide
variety of products and services, both directly and through a number of subsidiaries
and affiliates like ICICI Bank. In 1999, ICICI become the first Indian company and
the first bank or financial institution from non-Japan Asia to be listed on the NYSE.

In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the
merger of ICICI and two of its wholly owned retail finance subsidiaries, ICICI
Personal Financial Services Limited and ICICI Capital Services Limited, with ICICI
Bank. The merger was approved by shareholders of ICICI and ICICI Bank in January
2002, by the High Court of Gujarat at Ahmadabad in March 2002, and by the High
Court of Judicature at Mumbai and the Reserve Bank of India in April 2002.
Consequent to the merger, the ICICI group's financing and banking Operations, both
wholesale and retail, have been integrated in a single entity.

BUSINESS OBJECTIVES

Vision

To be the leading provider of financial services in India and a major global bank.

Mission

 We will leverage our people, technology, speed and financial capital to:

33
 be the banker of first choice for our customers by delivering high quality,
world-class
service.
 Expand the frontiers of our business globally.
 Play a proactive role in the full realisation of India’s potential.
 maintain a healthy financial profile and diversify our earnings across
businesses and
geographies.
 Maintain high standards of governance and ethics.
 Contribute positively to the various countries and markets in which we
operate.
 Create value for our stakeholders.

Product and Services

Service and banking of ICICI bank categorized in to personal banking, business

banking and NRI banking services.
Personal banking- Deposit in form of saving, recurring, term deposit, senior citizen
deposit and children depository account are there for individual customer can also
avail of their housing, automobile, farm equipment, business or personal loan scheme.
Personal client can also invest in mutual funds and participate in stock trading through
ICICI bank.

Business banking – Business banking services of ICICI Bank are exhaustive. Project
financing, deal assessment, and land evaluation are investment banking services
offered to corporate clients. Global trade and cash management transaction services
facilitate remittances and receipts across important cities. Capital market and
custodial services enable business houses to participate in equity trading and transfer
acrossmajor stock marketsofworld.
Customer

ICICI bank targets all segment of customer with various types of products and
services. I interacted with a a lot of customers and collect their feedback on the given
services of company, and feedback are positive response from all point of view.

34
Customers are beneficiary from both sides monetary as well as non monetary. The
bank targets to add nearly 500,000 customers under the new scheme in the next one
year and plans to offer auto loans through the new online channel in the future, ICICI
Bank's Executive Director, V Vaidyanathan, said here.

"As of now, nearly 24 per cent of our customer transactions are happening through
internet. We are primarily targeting our urban customers, who constitute nearly 70 per
cent of our total customer-base," Vaidyanathan said.

Customers, opting for the service can also benefit from the quantum optima facility,
wherein if the balance exceeds Rs 5,000, the money will automatically be transferred
to a fixed deposit scheme, he said. The facility, which also enable customers to
transact between an ICICI Bank account and accounts in other banks, is being offered
free of cost, he said ICICI bank, presently, has above 2 crore customers. The lender
opened nearly 470 branches in the last fiscal. The lender has also plans to launch
'SMS n Cash' scheme later this week under which ICICI account holders can transfer
funds to those who do not have a bank account. ICICI bank is strongly committed to
protecting the privacy of its customers and has taken all necessary and reasonable
measures to protect the confidentiality of the customer information and its
transmission through the world wide web and it shall not be held liable for disclosure
of the confidential information when in accordance with this privacy commitment or
in terms of the agreements, if any, with the customers.

ICICI bank Endeavour’s to safeguard and ensure the security of the information
provided by the customer. ICICI bank uses 128-bit encryption, for the transmission of
the information, which is currently the permitted level of encryption in India. When
the information provided by the customers is not transmitted through this encryption,
the customer's system (if configured accordingly) will display an appropriate message
ensuring the best level of secrecy for the customer's information.

The customer would be required to cooperate with ICICI bank in order to ensure the
security of the information, and it is recommended that the customers necessarily
choose their passwords carefully such that no unauthorized access is made by a third
party. To make the password complex and difficult for others to guess, the customers
should use combination of alphabets, numbers and special characters (like! @, #, $
35
etc.). The customers should undertake not to disclose their password to anyone or
keep any written or other record of the password such that a third party could access
it.

 ICICI bank undertakes not to disclose the information provided by the

customers to any person, unless such action is necessary to:
 Conform to legal requirements or comply with legal process;
 Protect and defend ICICI bank's or its affiliates rights, interests or property;
 Enforce the terms and conditions of the products or services; or
 Act to protect the interests of ICICI bank, its affiliates, or its members,
constituents or of other persons.

Competitor

The main competitor of is ICICI bank is SBI because this bank is totally taken by
government after this bank HDFC bank is the main competitor of ICICI bank .There
are different types of segment operation semment, investment and services, demat and
NRI services.The competitor from the operation segment are State Bank of
India(SBI), Axis, Housing Development and Financial corporation(HDFC) etc.From
the investment And service sector HDFC standard life insurance corporation, Bharati
Axa life insurance ,Reliance Life Insurance Corporation, Max new work life
insurance SBI Life insurance,Life Insurance Corporation of India.In demat section
India bull,Anangram,SBI,HDFC,India Infoline are the main competitor of ICICI
bank.In the NRI service section the Western Union bank is the main competitor of
ICICI bank.There are some other company who also compete with the ICICI bank
After the SBI the HDFC bank is the main competitor of ICICI bank.

HDFC Bank Ltd. is a commercial bank of India, incorporated in August 1994, after
the Reserve Bank of India allowed establishing private sector banks. The Bank was
promoted by the Housing Development Finance Corporation, a premier housing
finance company (set up in 1977) of India. HDFC Bank has 1,500 branches and over
2,890 ATMs, in 530 cities in India, and all branches of the bank are linked on an
online real-time basis. As of September 30, 2008 the bank had total assets of INR
1006.82 billion.

36
State Bank of India is the largest bank in India. It is also, measured by the number of
branch offices and employees, the second largest bank in the world.[citation needed]
The bank traces its ancestry back through the Imperial Bank of India to the founding
in 1806 of the Bank of Calcutta, making it the oldest commercial bank in the Indian
Subcontinent. The Government of India nationalised the Imperial Bank of India in
1955, with the Reserve Bank of India taking a 60% stake, and renamed it the State
Bank of India. In 2008, the Government took over the stake held by the Reserve Bank
of India.SBI provides a range of banking products through its vast network in India
and overseas, including products aimed at NRIs. With an asset base of $126 billion
and its reach, it is a regional banking behemoth. SBI has laid emphasis on reducing
the huge manpower through Golden handshake schemes and computerizing its
operations.The State Bank Group, with over 16000 branches , has the largest branch
network in India. It has a market share among Indian commercial banks of about 20%
in deposits and advances, and SBI accounts for almost one-fifth of the nation’s
loans.There are some other banks which gives challenging some how in the banking
and service sectorthey are:

 Allahabad Bank
 Andhra Bank
 Bank of Baroda
 Bank of India
 Bank of Maharashtra
 Canara Bank
 Central Bank of India
 Corporation Bank
 Dena Bank
 IDBI Bank
 Indian Bank
 Indian Overseas Bank
 Oriental Bank of Commerce
 Punjab & Sind Bank
 Punjab National Bank
 Syndicate Bank
 UCO Bank

37
  Union Bank of India
 United Bank of India
 Vijaya Bank

Environment

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

TECHNOLOGY

ICICI use many type of advance technological software like Pinnacle 7.0 and
Pinnacle7.016.Among from this software ICICI bank uses the e-banking, core
banking, mobile banking electronic display sy ICICI Bank was using Teradata for its
data warehouse. However, due to its proprietary hardware, the cost of procurement,
upgrades and administration was soaring. The closed box architecture of Teradata

38
imposed restrictions on scalability. Secondly, querying and loading could not happen
simultaneously. Queries could only be run during business hours because the loading
of data had to take place during off-business hours. This meant that the refresh rate of
EDW was delayed, so queries may not reflect the most current data. ICICI Bank was
also dependent on Teradata for support and other activities: The bank was completely
tied down to that solution.

These issues compelled ICICI Bank to look for more efficient and flexible solutions.
The solution would have to address not only current issues, but accommodate future
growth expectations and business requirements. ICICI Bank evaluated numerous data
warehousing solutions in the pursuit of solving its issues, and developed a shortlist of
alternatives for its migration proof-of-concept: Sybase, SAS and Netezza. The
primary criteria for evaluation was the price-to-performance ratio where Sybase IQ
emerged the clear winner. During this rigorous testing, Sybase IQ delivered faster
results on independent hardware and operating systems with minimum infrastructure.
Commending the improvements achieved, Amit Sethi, Joint General Manager, ICICI
bank says, "What impressed us wasthat even with overall lower costs, we could
achieve significantly better query performanceafter implementing the Sybase
enterprise warehouse solution." ICICI Infotech today launched an enterprise resource
planning (ERP) solution for the small and medium enterprises.

The ERP package - Orion Advantage - comes bundled with an HP dual processor
Xeon server, Oracle 9i database, Windows 2003 server and costs about Rs 9.90 lakh
and has a 15-user license.An ERP package helps a manufacturer or any other business
implementing it to manage all the important parts in the company such as product
planning, parts purchasing, maintaining inventory and interacting with suppliers and
customers.ICICIInfoTech officials told a pressconference here today that Orion
Advantage offered a set of business practice solutions for industry segments such as
engineering, auto ancillary, pharmaceuticals, chemicals and IT distribution. Besides
the cost advantage, the ERP package also came pre-configured. ICICI InfoTech had
mapped the processes specific to each industry segment into the package.

Mr. R.K. Kanthi, Deputy General Manager, ICICI InfoTech, said there was no ERP
package for the SMEs that bundled the server, database and operating system right

39
now. That was the advantage ICICI InfoTech offered to SMEs as Orion Advantage
came bundled and pre-configured. Besides the high cost of generic ERP packages,
their implementation time as far as SMEs were concerned was also long. Orion
Advantage could be installed in 45 days.

ICICI InfoTech had signed up six customers so far for the package and hoped to
garner a 15 per cent market share of the SME segment, whose number in the country
was estimated at 2.30 lakh.

The Chennai centers were involved in research and development of Orion ERP
solutions and Premia, an insurance package.

ERP Systems Integration

Pinnacle Software Solutions has the expertise and experience to assist you with your
enterprise systems integration. From developing your strategy, through
implementation and support, we bring the right combination of resources,
management skillsets, and technical know-how. We will help you successfully
integrate your Enterprise Resource Planning (ERP) systems into your overall
business and technology infrastructure.

Whether you are planning an upgrade of an existing ERP system, or a complete

replacement of a legacy application and platform, we can help you improve your
financial, human resources, electronic mail, and other business systems. We work
with the leading ERP systems, including the latest versions of the Oracle and
PeopleSoft applications:

General Ledger Project Costing

Accounts Payable Human Resources
Accounts Receivable Payroll
Purchasing Benefits
Asset Management Compensation

Our technology management solutions will help you migrate hardware platforms,
improve network and database performance, develop or refresh policies and
40
procedures, and develop sound disaster recovery and backup solutions. Please contact
us to learn how Pinnacle Software Solutions can help you develop “solutions that
fit” your enterprise.

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

Vision and Mission

Their vision is to make ICICI Prudential Life Insurance Company the dominant new
insurer in the life insurance industry. This they hope to achieve through their
commitment to excellence, focus on service, speed and innovation, and leveraging our
technological expertise.

The success of the organisation will be founded on its strong focus on values and
clarity of purpose. These include:

 Understanding the needs of customers and offering them superior products

and service
 Building long lasting relationships with their partners
 Providing an enabling environment to foster growth and learning for their
employees

41
And above all building transparency in all our dealings. They believe that they can
play a significant role in redefining and reshaping the sector. Given the quality of
their parentage and the commitment of their team, they feel that there will be no limits
to their growth.

Board of Directors
The ICICI Prudential Life Insurance Company Limited Board comprises reputed
people from the finance industry both from India and abroad.

Shri K.V. Kamath, Chairman

Management Team
Ms. Shikha Sharma, Managing Director
Mr. Kevin Wright, Executive Vice President - Sales & Distribution
Ms. MadhaviSoman, Chief - Strategic Initiatives
Mr. V. Rajagopalan, Appointed Actuary
Mr. Sandeep Batra, Chief Financial Officer & Company Secretary
Mr. Saugata Gupta, Chief - Marketing & Service
Mr. Shubhro J. Mitra, Chief - Human Resources

Corporate Office:

ICCI Prulife Towers,

1089, AppasahabMarathe Marg,
Prabhadevi,
Mumbai 400 025.
Telephone Number: 022-462 1600
Website : www.iciciprulife.com

ICICI Prudential Life Insurance Company (ICICI Life) maintained its market
leadership in the private sector with an overall market share of 9.3% based on retail
new business weighted received premium in fiscal 2010. ICICI Life’s total premium
increased by 7.7% to Rs. 165.32 billion in fiscal 2010 with renewal premiums
increasing by 19.4%. ICICI Life’s new business annualised premium equivalent was
Rs. 53.45 billion in fiscal 2010. ICICI Life achieved its first year of accounting profits
since inception in fiscal 2010 with a profit after tax of Rs. 2.58 billion.
42
The expense ratio has decreased from 11.8% in fiscal 2009 to 9.1% in fiscal 2010.
Assets held at March 31, 2010 were Rs. 573.19 billion compared to Rs. 327.88 billion
at March 31, 2009.

ICICI Life’s unaudited New Business Profit in fiscal 2010 was Rs. 10.15 billion. Life
insurance companies make accounting losses in initial years due to business set-up
and customer acquisition costs in the initial years and reserving for actuarial liability.
Further, in India, amortization of acquisition costs is not permitted. These factors
resulted in statutory losses for ICICI Life since the company’s inception till fiscal
2009. If properly priced, life insurance policies are profitable over the life of the
policy, but at the time of sale, there is a loss on account of non-amortized expenses
and commissions, generally termed as new business strain that emerges out of new
business written during the year. New Business Profit is an alternate measure of the
underlying business profitability
(as opposed to the statutory profit or loss) and is the present value of the profits of the
new business written during the year. It is based on standard economic and non-
economic assumptions including risk discount rates, investment returns, mortality,
expenses and persistency assumptions.

ICICI Lombard General Insurance Company

ICICI Lombard General Insurance Company Limited is a 74:26 joint venture

between ICICI Bank Limited and Canada based Fairfax Financial
Holdings Limited. ICICI Bank is India's second largest bank, while Fairfax Financial
Holdings is a diversified financial corporate engaged in
general insurance, reinsurance, insurance claims management
and Investmentmanagement. Lombard Canada Ltd, a group company of Fairfax
Financial Holdings Limited, is one of Canada's oldest property and casualty insurers.
ICICI Lombard General Insurance Company received regulatory approvals to
commence general insurance business in August 2000.

Board Members

 Mr K V Kamath, Chairman

43
  Mr R Athappan, Director
 Mr B V Bhargava, Director
 MrDileepChoksi, Director
 Mr James F Dowd, Director
 MsLalita D Gupte, Director
 MsKalpanaMorparia, Director
 Mr S Mukherji, Director
 MrChandranRatnaswami, Director
 Mr H N Sinor, Director
 Mr Sandeep Bakhshi, Managing Director & CEO

Retail Segment of ICICI Lombard General Insurance :

ICICI Lombard's Retail Segment consists of personal insurance products - Health,

Home, Motor and Travel insurances.

Health Insurance

ICICI Lombard is known to be a pioneer in introducing innovative concepts in the

Indian health Insurance sector. Be it the floater concept, the critical illness cover or
the tax gain policy, all these were first introduced by ICICI Lombard. It was also one
of the first general insurance companies in India to have a robust online system in
place for buying and renewing policies.

The various plans offered by ICICI Lombard include Family Floater Plan - where one
policy covers the entire family, Health Advantage Plus - where they cover OPD and
dental expenses, also help save maximum tax under section 80D and Critical Illness
plan - a special policy covering a list of critical illnesses. They also have a
basic Personal Accident Plan which covers against accidents. ICICI Lombard health
plans also provide coverage against terrorism.

Home Insurance

Home Insurance is actually one of the most neglected areas in the general insurance
category. Simply, because people in general, especially in India, do not give much

44
importance to it. However, in the recent years, due to the increase in awareness, and
the great extent of damage caused to property due to natural calamities and terrorism,
it has been gaining importance. The Home Insurance Policyoffered by ICICI Lombard
covers both the structure and the contents of the house. You can opt for either of the
covers or both. Unlike other policies, it also covers damage due to terrorist activities,
loss of cash, public liability, temporary resettlement and others.

Motor Insurance

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

Travel Insurance

Travel insurance is one of the most prominent sector of general insurance, especially
overseas travel insurance and student medical insurance. ICICI Lombard offers
various options in both the categories. The Overseas Travel Plans and Student
Medical Plans offered cover medical and non-medical expenses, including
compensation for flights hijacked and pre existing diseases in case of emergency.
They charge on a per day basis if the travel is more than 7 days. ICICI Lombard has
tied up with United Health Group to facilitate access to all its clinics while in U.S.

The Student Medical Plans are accepted in almost universities worldwide. They also
have a section in their website, University Search, where one can find specific plans
for specific universities.

All the above retail policies can be bought online, without any documentation through
their website www.icicilombard.com .One can not only buy, but also manage and
renew their insurance policies online.

NRI Services

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

45
Parents' Health Insurance covers hospitalization and medical expenses incurred by
parents of the policyholder in India. For parents' travelling outside India, ICICI
Lombard offers a Parents' Overseas Travel Insurance policy.

An NRI can insure his children/ dependents travelling abroad to study, under the
Student Medical Insurance plan. Likewise, the Home Insurance and Car Insurance
schemes enables an NRI to secure his assets in India.
Channels

Channel is the term used for the various approaches a company uses to tap its
customers. ICICI Lombard uses a multi channel approach to ensure the sales, service
and other allied activities are carried out in the most effective manner.

Retail

The Retail channel consists of sales executives, sales officers, brokers and agents.
They are the one who are in direct contact with the customers and bring the
innovative insurance solutions to their doorsteps.

Online

ICICI Lombard has developed a web-based system to meet all the pre and post-policy
transaction. One can get quotes, buy, renew and track their policies onlin e through
the website [www.icicilombard.com]. With the do-it-yourself architecture, the online
channel is fast, convenient, easy to understand and operate.

ICICI Lombard General Insurance Company (ICICI General) maintained its

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

46
ICICI Prudential Asset Management Company

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

ICICI Venture Funds Management Company Limited

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

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

ICICI Bank UK PLC (ICICI Bank UK) offers retail and corporate and investment
banking services in the UK andEurope. During fiscal 2010, ICICI Bank UK continued
to focus on rebalancing its deposit base towards retail termdeposits and the proportion
of retail term deposits in total deposits increased from 58% at March 31, 2009 to66%
at March 31, 2010. ICICI Bank UK’s profit after tax for fiscal 2010 was USD 37.0
million compared to US$6.8 million in fiscal 2009. ICICI Bank UK’s capital position
continued to be strong with a capital adequacy ratio of17.3% at March 31, 2010.

47
ICICI Bank Canada

ICICI Bank Canada is a full-service bank which offers a wide range of financial
solutions to cater to personal,commercial, corporate, investment, treasury and trade
requirements. ICICI Bank Canada’s profit after tax for fiscal2010 was CAD 35.4
million compared to CAD 33.9 million in fiscal 2009. At March 31, 2010, ICICI Bank
Canadahad total advances of CAD 3.89 billion and total assets of CAD 5.68 billion.
ICICI Bank Canada’s capital positioncontinued to be strong with a capital adequacy
ratio of 23.4% at March 31, 2010

ICICI Bank Product & Customer Segment:

PERSONAL BANKING

Loan Product Deposit Product Investment & Insurance

 Auto Loan  Saving a/c  Mutual Fund

 Loan Against  Current a/c  Bonds
Security  Fixed deposit  Knowledge Centre
 Loan Against  Demat a/c  Insurance
Property  Safe Deposit  General and Health
 Personal loan Lockers Insurance
 Credit card  Equity and Derivatives
 2-wheeler loan  Mudra Gold Bar
 Commercial
vehicles finance
 Home loans
 Retail business
banking
 Tractor loan
 Working Capital
Finance

48
  Construction
Equipment Finance
 Health Care
Finance
 Education Loan
 Gold Loan

Cards Payment Services Access To Bank

 Credit Card  NetSafe  NetBanking

 Debit Card  Merchant  OneView
 Prepaid Card  Prepaid Refill  InstaAlert
 Billpay  MobileBanking
 Visa Billpay  ATM
 InstaPay  Phone Banking
--------------------------------  DirectPay  Email Statements
Forex Services  VisaMoney  Branch Network
-------------------------------- Transfer
 Product & Services  e–Monies
 Trade Services Electronic Funds
 Forex service Transfer
Branch Locater  Online Payment of
 RBI Guidelines Direct Tax

WHOLESALE BANKING

Corporate Small and Medium Financial Institutions and

Enterprises Trusts

49
 Funded Services  Funded Services BANKS
 Non Funded  Non Funded Services  Clearing Sub-Membership
Services  Specialized Services  RTGS – sub-membership
 Value Added  Value added services  Fund Transfer
Services  Internet Banking  ATM Tie-ups
 Internet Banking  Corporate Salary a/c
 Tax Collection
Financial Institutions

Mutual Funds

Stock Brokers

Insurance Companies

Commodities Business

Trusts

NRI SERVICES

Accounts & Deposits Remittances

 Rupee Saving a/c  North America

 Rupee Current a/c  UK
 Rupee Fixed Deposits  Europe
 Foreign Currency Deposits  South East Asia
 Accounts for Returning Indians  Middle East
 Africa
 Others

50
 Quick remit
IndiaLink
ChequeLockBox
Telegraphic/ Wire Transfer
Funds Transfer Cheques/DDs/TCs

Investment & Insurances Loans

 Mutual Funds  Home Loans

 Insurance  Loans Against Securities
 Private Banking  Loans Against Deposits
 Portfolio Investment Scheme  Gold Credit Card

Payment Services Access To Bank

PRODUCTS& SERVICES OFFERED BY ICICI BANK

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

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

Special Savings Account:

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

51
“LIFE PLUS”Senior citizens savings account
LIFE PLUS,a special savings account for senior citizens from ICICI Bank is
packed with a host of benefits, designed keeping your unique financial
requirements in mind.
 Special senior citizens desk to cater to all banking transactions, so that you
don’t wait in queues.
 Higher interest rate on FD/RD:avail the combined benefits of
safety,flexibility and attractive returns with ICICI Bank Fixed Deposit and
Recurring Deposit.
 Free special senior citizen LIFE PLUS debit card.
 Money multiplies facility.
 Extended banking hours allows you to visit our branches,as per your
convenience.
 Anywhere banking access to various services,ICICI Bank has to offer –
anytime,anywhere and from any place, including branches,ATMs and
phone banking.
 Nomination facility available.
 Quarterly average balance (QAB) requirement of Rs.5000.
 Quarterly physical statements are delivered to your doorstep to absolutely
free of cost.
 Passbook on request.

Young Stars Account:

Young Stars is a banking service for children, aged 1day -18 years, brought to you by
ICICI Bank to help the parents meet the present and future aspirations that they hold
for their child. It offers various savings and investment options to the parent along
with teaching the child to manage his/her personal finance in a more responsible and
independent manner.Young Stars will guide your child through the world of banking -
through checking the account balance, fun zones and special pages on the internet. It
makes banking a pleasure and of course teaches your child to manage their personal
finances.With the pocket money that you transfer to your child's account, you can
even shop with him / her at Young Stars very own shopping page. You can even open
a recurring deposit in your child's name.
52
Once you are done with your 'banking', you can access your child's account with all
the fun links to special zones designed to suit your child's area of interests and also
impart knowledge on the current events of the world.

Advantage woman savings account

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

 Special International Woman’s Debit Card with lots of offers.

 Free unlimited access to any bank’s ATM.
 Bill Pay facility & Multi Channel Access.
 Payable-at-par cheque book.
 Nomination facility available.
 Zero balance facility with an RD of Rs.2000 or Quarterly Average Balance
(QAB) requirement of Rs. 10,000.

Current Accounts:

Every business requires efficient banking facilities to support its business activities.
ICICI Bank offers premium quality service, unfolding a wide array of class products.
With technology leadership and service the bank is able to meet some of the most
challenging financial needs of clients.A Current Account is one that is required by
Businessman, Joint stock companies, Institutions, Public authorities,
public corporations etc. Any business tha t has numerous banking
transactions need a current account as it

 Allows running account supporting unlimited withdrawals and deposits.

 Is meant for convenience and not to save money.

53
Roaming Current Account

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

Salary Accounts

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

 The process of drawing cheques for salaries is replaced

by sending a single ASC II file to the bank and the
amount is directl y credited into the employee’s salar y
account
 Cuts down payroll processing workload
 Salary Account can be opened with minimu m 10
employees
 Instant credit of salaries

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

• Having the largest network of ATMs at their command,

• Free 24 hour Phone Banking,

• Free Internet Banking.

All that the organization would require to do is to send ICICI Bank an advice (in form
of a cheque/debit instructionetc) for the total salary amount along with the salary

54
details of the designated employees in a soft and hard copy format and we will credit
the respective employees' accounts as per your statement of advice.ICICI Bank Salary
Accounts benefits you in more than one ways:-

• Reduces paperwork.

• Saves remittance costs.

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

Fixed deposits:

Fixed deposits are options which help you grow your money thus creating wealth in a
safer and secure way.

ICICI provides its customers with various kinds of Fixed deposit facilities that are
flexible and cater to customers who have different needs and wants in their fixed
deposits.
ICICI provides a Fixed Deposit that allows customers to deposit their money for just
as long as you wish.

 Wide range of tenures – 15 days to 10 years.

 Choice of investment plan – traditional and cumulative deposits.
 Partial withdrawal allowed.
 Loan facility available – you can avail loan up to 90% of principal and accrued
interest.
 Auto renewal facility – you can choose this option so that the deposit can be
renewed on maturity.
 Interest compounded quarterly.
 Additional interest rate of 0.5% for senior citizens.

Recurring Deposits:ICICI Bank Recurring Deposits are an ideal way to invest

small amounts of money every month and end up with a large kitty on maturity.High

55
recurring billing and recurring payments can be a drain on your finances and hence
large investments may seem a plan away.

Recurring deposits aims to encourage savings without putting any stress on

customer’s finances by making them to put a lump sum amount in fixed deposit in
one go.The recurring deposit also attracts high rate of return that are identical to the
fixed deposit rates and most importantly no TDS is applicable in it .the minimum
balance of deposit is of Rs.500 and thereafter in multiples of Rs.100 the minimum
period is 6 months and thereafter in multiples of 3 months,nomination facility is also
available.

Security Deposits:
A few Corporates stipulate to their new employees to provide Security Deposit to
reduce attrition. ICICI Bank’s proposal for the employee is to keep the Security
Deposit in the form of a Fixed Deposit (FD) with the Bank. The employee cannot
withdraw such FDs without the consent of the company and the company has the right
to withdraw the FD in the event of employee leaving the organization before a certain
stipulated period.
ICICI Bank Tax-Saver Fixed Deposit
ICICI Bank’s Tax-Saver Fixed Deposit enables you to save tax and earn high
returns. A dual benefit option structured to maximize your advantage. ICICI Bank’s
Tax Saver FD is the perfect solution for your investment needs.

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

56
Resident Foreign Currency (Domestic) Account
Do you want to save money while buying foreign currency for travelling abroad? You
can buy traveler’scheques, foreign currency in cash and foreign currency demand
draft for your expenses overseas. If you are a frequent traveler, you may not want to
go through the hassles of buying foreign currency every time you travel abroad.

The Reserve Bank of India has now made it easier for you to access foreign currency
by permitting a foreign currency account (domestic) for resident Indians. In line with
RBI guidelines, ICICI Bank has come up with a scheme that helps you get rid of all
your Forex worries. You can park your foreign currency in ICICI Bank under RFC
(D) account. Non-interest bearing Resident Foreign Currency (D) (RFC (D)) with
ICICI Bank can be maintained in four major currencies (USD, EURO, GBP and
Japanese Yen)

PRIVILEGE BANKING:

Privilege banking service ensures preferential treatment to its customers.

Silver privilege A/c

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

 Waiver of DD/PO charges for up to Rs.50,000 per day.
 Preferential rates of gold coins, deposits locker &foreignexchange.
 Quarterly average balance requirement of Rs.25000.

Gold privilege A/c

 Priority processing at all ICICI Bank branches and customer care.

 Free usage of payable -at-par chequebook.
 Free international gold debit card with higher daily withdrawal and spend
limit.
 Waiver of DD/PO charges for up to Rs.100,000 per day.
 Free anywhere banking facility.
 Preferential rates for gold coins,deposit lockers and foreign exchange.
 Quarterly Average Balance(QAB) requirement of Rs.50000.

57
Titanium privilege A/c

 Branch relationship manager supported with phone banking

relationship manager.
 Priority processing at ICICI Bank branches and customer care.
 Free international titanium debit card with higher daily withdrawal and
spend limit.
 Free anywhere banking facility.
 Free usage of multi-city cheque book.
 Free physical monthly account statement.
 Complete waiver on DD/PO charges.
 Preferential rates for gold coins,deposit lockers and foreign exchange.
 Quarterly average balance (QAB)requirement of Rs.75000 and Total
Relationship Value(TRV)of Rs. 5,00,000.

Family banking:

Superior product benefits of privilege banking,wealth management and global private

client(GPC) available to all the members of your family while the required minimum
balance can be maintained in any of the accounts.

 Access to superior benefits for the entire family.

 Flexibility to maintain balances across account.
 Lower minimum balance requirement at individual customer level.
 Single family bank – convenience for the entire family and easier funds
management.

Outward Remittance:

Send money to your loved ones abroad

ICICI Bank offers you a simple way to send money outside India. Our Outward
Remittance facilities make remitting money abroad quick, and reliable. ICICI Bank’s
Outward Remittance is the solution for your all your needs. Be it money for

58
education, gift money or maintenance for loved ones or donation for a cause. Our
extensive network gives us reach to most parts of the world.

Advantage Deposit

Advantage Deposit is a combination of fixed deposit and mutual fund investment,

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

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

Systematic Investment Plan (SIP) of a Mutual Fund.
 Re-investment of monthly interest payout of Fixed Deposit into systematic
investment plan of Mutual Fund.
 Automatic debits to account through Standing Instruction / ECS debit
mandate.

New Pension System of Government of India

ICICI Bank with 49 branches is a Point of Presence (POP) for the NEW PENSION
SYSTEM launched on May 1, 2009 by the Government of India. The scheme,
promoted by the PFRDA (Pension Fund Regulatory and Development Authority,
Government of India), is a first of its kind in India and is being launched pan-India by
22 other POP's as well.

The purpose of this pension scheme is to promote security of income to its subscribers
in their old age. The scheme will empower a subscriber to plan his own retirement and
pension. It not only will help him save for life after retirement but also is a good
investment tool as the returns are market-driven. For optimum returns, the
Government has appointed six fund managers for subscribers to choose from.

Various Loans offered by ICICI Bank

HOME LOAN

Interest rates on home loans have come down considerably in the last few years.
Individuals, who opted for housing loans in the years gone by, are still servicing them

59
at 17% to 21% per annum. Quite a price to pay, since one can get a loan today for
around 12% per annum. In such a case, you can opt for a balance transfer. Under this
scheme, customers can replace their existing old high interest loan by a cheaper (equal
to applicable current rates) loan. ICICI Home Finance will not only finance the
balance amount of outstanding loan but also your prepayment charges to the old
housing finance company.
The result:

 A lower EMI with the same tenure .

 A reduced tenure with the same EMI.
 A reduced tenure and EMI .
 The same EMI and tenure but an additional amount as a loan.

PERSONAL LOANS

ICICI Bank Personal Loans are easy to get and absolutely hassle free. Withminimum
documentation you can now secure a loan for an amount up to Rs.15 Lakhs.

 Loans for salaried & self employed individuals.

 Loans are available from Rs. 20,000 to Rs. 15 Lakhs.
 Repayment tenures from 12 - 60 months.
 No Security,Collateral or Guarantors required.
 Loans can be used for any purpose with no questions asked regarding the end
use of the loan.
 A balance transfer facility available for those who want to retire any higher
debt.
 All loan repayments are done via equated monthly installments (EMI).

CAR LOAN

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

60
COMMERCIAL VEHICLE LOAN
 Reaches you through more than 700 locations across the country.
 Range of products under one umbrella.
 Funding of various products like HCVs, Buses, MCVs, LCVs, 3 wheelers &
used vehicle.
 Range of services on existing loans & extended products like funding of new
vehicles, refinance on used vehicles, balance transfer on high cost loans, top
up on existing loans, Extend product, working capital loans & other banking
products..
 Preferred financier status with most of the leading manufacturers.
 Simple documentation.
 Quick turnaround time.
 Flexible financing solutions to meet the individual requirement.
TWO WHEELER LOANS:
"Zoom" away in your favourite two wheeler. ICICI provides attractive schemes at
competitive interest rates.

 Finance facility available for all two wheelers ranging from mopeds to motor
bikes.
 Now avail Finance upto 90%* of the On Road Cost of the vehicle, repayable
in convenient tenure options ranging from 6 months to 36 months*.
 Ride Easy Pay Easy with ICICI Bank Two Wheeler Loans.
 In an unlikely case of your not meeting our norms NO PROBLEM - you can
still avail our loan, any blood relative can be your co-applicant.
 Existing ICICI Bank Customers ride away on your favourite Two Wheeler by
availing Loan On Phone*-- a facility to get an instant loan over the phone!!
Apply for loan online, call or through sms.

FARM EQUIPMENT LOANS:

 ICICI is the preferred financier for almost all leading tractor manufacturers in
the country.

61
  ICICI finances farm equipments in over 381 locations spread across the
country.
 Provides fast processing of files with easy documentation.
 Flexible repayment options in tandem with the farmer's seasonal liquidity.
 Monthly, Quarterly and Half-yearly repayment patterns to choose from.
Comfortable repayment tenures from 1 year to 6 years.

CONSTRUCTION EQUIPMENT LOAN

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

OFFICE EQUIPMENT LOAN:

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

MEDICAL EQUIPMENT LOAN:

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

62
 Our Key features are:
 Doorstep Service.
 Funding in more than 150 locations across the country.
 The bank provides Competitive interest rates.
 ICICI also offers flexible repayment structure.

LOAN AGAINST SECURITIES

Loans against Securities enables customers to obtain loans against their securities. So
they get instant liquidity without having to sell their securities.
All customers have to do is pledge your securities in favour of ICICI Bank The Bank
will then grant them an overdraft facility upto a value determined on the basis of the
securities pledged by them. A current account will be opened and customer can
withdraw money as and when they require. Interest will be charged only on the
amount withdrawn and for the time span utilised.
ICICI offer loans against:
 Demat Shares
 RBI Relief Bonds
 Mutual Funds Units
 India Millennium Deposits (IMDs)
 ICICI Bank Bonds
 Life Insurance Policies (Single Premium)

CREDIT CARDS:
ICICI Bank Credit Cards give you the facility of cash, convenience and a range of
benefits, anywhere in the world. These benefits range from life timefree cards,
Insurance benefits, global emergency assistance service,discounts, utility payments,
travel discounts and much more.
DEBIT CARDS:
The ICICI Bank Debit Card is a revolutionary form of cash that allows customers to
access their bank account around the clock, around the world.The ICICI Bank Debit
Card can be used for shopping at more than 100,000 merchants in India and 13
million merchants worldwide.

63
TRAVEL CARD:
Presenting ICICI Bank Travel Card. The Hassle Free way to Travel the world.
Traveling with US Dollar, Euro, Pound Sterling or Swiss Francs; Looking for security
and convenience; take ICICI BankTravel Card. Issued in duplicate. Offers the Pin
based security. Has the convenience of usage of Credit or Debit card.

PRE PAID CARDS:

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

 INVESTMENTS

ICICI Bank cares about all needs. Along with Deposit products and Loan offerings,
ICICI Bank assists people to manage their finances by providing various investment
options ranging from ICICI Bank Tax Saving Bonds to Equity Investments through
Initial Public Offers and Investment in Pure Gold. ICICI Bank facilitates following
investment products:

 ICICI Bank Tax Saving Bonds

 Government of India Bonds
 Investment in Mutual Funds
 Initial Public Offers by Corporate
 Investment in "Pure Gold"
 Foreign Exchange Services
 Senior Citizens Savings Scheme, 2004Customers can invest in above products
through any of ICICI bank branches. For select products ICICI Bank also
provides the ease of investing through electronic channels like ATMs and
Internet (ICICIdirect.com)

64
 ICICI BANK BONDS

 All ICICI Bank Bonds have been rated "AAA" by CARE and "LAAA"
by ICRA indicating the highest degree of safety for your money.
 Investment in ICICI Bank Bonds are eligible for tax rebate under Sec
88 to the full extent possible.
 Bonds are listed on BSE, NSE.
GOI BONDS

 8% Savings Bonds (Taxable), 2003.

 Low risk.
 Reasonable investment tenure.
 Nomination facility available.
 Cannot be traded in secondary market.
 Interest income taxable.
 Mutual FundS

Mutual Funds pool money of various investors to purchase a wide variety of securities
while pursuing a specific goal. Selection of Securities for the purpose is done by
specialists from the field. Returns generated are distributed to the Investors. Mutual
Fund Companies offer various schemes. Investors can choose any particular
Fund/Scheme or mix of Funds/Schemes depending upon their perception towards
risk. Investment is done on the basis of prevailing Net Asset Values of various
schemes. Mutual Funds Investments are subject to Market Risks.

Types of Funds Sold

ICICI Bank helps investor determine which types of funds you need to meet your
investment goals. This may include the following types of funds:
Debt:Liquid schemes, Income schemes, G-sec schemes, Monthly Income
Schemesetc.
Equity:Diversified Equity Schemes, Sector Schemes, Index Schemes etc.
Hybrid Funds:Balanced Schemes, Special Schemes - Pension Schemes,
Childeducation Schemes etc.ICICI Bank helps investors identify an appropriate mix
of Mutual Fund schemes for their portfolio using asset allocation strategies.

65
Through ICICI Bank investor can invest in various schemes of multiple mutual funds
with decent performance record. investor can take the aid of ICICI Bank’s various
research reports on mutual funds and their schemes before choosing a scheme for
investment. ICICI Bank offers investment in Mutual Funds through Multiple
Channels. With ICICI Bank, investor can invest in Mutual Funds through following
channels.
 ICICI Bank Branches
 ICICI Bank ATM’S
 ICICIdirect.com

And provide a dedicated workforce to serve clients.

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

 Throughout their careers officers also attend programs to update their skills.
All officers in charge of Mutual Funds are certified professionals by AMFI
(Association of Mutual Funds in India)
 Many of these officers also hold professional degrees like - MBA, CA, ICWA,
and CFA etc.

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

Initial public offerings (IPO)

Investor can invest in IPOs online through www.icicidirect.com with same

convenience ofinvesting in equities - hassle-free and with zero paper work. Also, get
in-depth analyses ofnew IPOs issues (Initial Public Offerings) which are about to hit
the market. IPO calendar,recent IPO listings, prospectus/offer documents and live
prices will help you keep on top ofthe IPO markets.

66
ICICI Bank Pure Gold
Gold has been traditionally the most favored form of investment for Indians. In fact,
India,
even today is amongst the highest consumers of Gold in the world. However, the Gold
market
remains largely unorganized with reliability and convenience remaining the key issues
for
gold buyers in the country.ICICI Bank with its `Pure Gold' offer attempts to bridge
the gap
between the need of the customers for buying gold and availability of an organized
avenue to
satisfy that need, by taking care of the two key components:-

Reliability and Convenience.

67
 LITERTAURE REVIEW

CONSUMER RESEARCH IN DIFFERENT DISCIPLINES

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

CONSUMER SATISFACTION PROCESS

The paramount goal of marketing is to understand the customer and to influence
buying behaviour.

The process can be depicted as follows:-

 Need recognition- realization of the difference between the desired and the
current situation that serves as a trigger for entire process.
 Search for information.
 Pre purchase alternative evaluation.
 Consumption(utilization of the procured option)
 Post purchase alternative re-evaluation.
 Divestment(disposal of the unconsumed product and it’s remnants)

COMPANY’S EFFORT TO ENSURE SATISFACTION OF CUSTOMERS:

Objectives of ICICI

Promote good and fair banking practices by setting minimum standards

in dealing with you

Increase transparency so that you can have a better understanding of

what you can reasonably expect of the services;

Encourage market forces, through competition, to achieve higher

operating standards;

Promote a fair and cordial relationship between you and your bank;

Foster confidence in the banking system

68
To Help You To Understand How Our Financial Products And Services Work By:

Giving you information about them in any one or more of the following
languages: Hindi, English or the appropriate local language.
Ensuring that our advertising and promotional literature is clear and not
misleading
Ensuring that you are given clear information about our products and services,
the terms and conditions and the interest rates/service charges, which apply to
them.
Giving you information on what are the benefits to you, how you can avail of
the benefits, what are their financial implications and whom you can contact
for addressing you queries.
To Help You Use Your Account Or Service By:
Providing you regular appropriate updates.
Keeping you informed about changes in the interest rates, charges or terms
and conditions.

Information

You can get information on interest rates, common fees and charges through any one
of the following:

Looking at the notices in our branches ;

Phoning our branches or help-lines;
Looking on our website;
Asking our designated staff/help desk ;or
Referring to the service guide/Tariff Schedule.

Before You Become a Customer we will:

give you clear information explaining the key features of the services and
products you tell us you are interested in;

give you information on any type of products and services which we offer and
that may suit your needs;

tell you if we offer products and services in more than one way [for example,
through

69
 ATMs, on the Internet, over the phone, in branches and so on] and tell you
how to find out more about them;

tell you what information we need from you to prove your identity and
address, for us to comply with legal, regulatory and internal policy
requirements

Advertising, Marketing and Sales

We will make sure that all advertising and promotional material is clear, and
not misleading.

In any advertising in any media and promotional literature that draws attention
to banking service or product and includes a reference to an interest rate, we
will also indicate whether other fees and charges will apply and that full
details of the relevant terms and conditions are available on request.

If we avail of the services of third parties for providing support services, we

will require that such third parties handle your personal information (if any
available to such third parties) with the same degree of confidentiality and
securityas we would.

We may, from time to time, communicate to you various features of our

products availed by you. Information about our other products or promotional
offers in respect of our products/services, will be conveyed to you only if you
have given your consent to receive such information/ service either by mail or
by registering for the same on our website or on our phone banking/customer
service number.

We have prescribed a code of conduct for our Direct Selling Agencies (DSAs)
whose services we may avail to market our products/ services which amongst
other matters requires them to identify themselves when they approach you for
selling our products personally or through phone.

In the event of receipt of any complaint from you that our

representative/courier or DSA has engaged in any improper conduct or acted
in violation of this Code, we shall take appropriate steps to investigate and to
handle the complaint and to make good the loss.

70
 RESEARCH METHODLOGY

INTRODUCTION
Research in common parlance refers to a search for knowledge. One can also define
research as a scientific and systematic search for pertinent information on a specific
topic. In fact, research is an art of scientific investigation. “Research is a
systematized effort to gain new knowledge”

Research is an original contribution to the existing knowledge for its advancement. It

is the pursuit of truth with the help of study, observation, comparison and experiment.
In short knowledge through objective and systematic method of finding solution to a
problem is research. Research refers to the systematic method consisting of
enunciating the problem, formulating the hypothesis, collection of the facts.

Title of the Study

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

Objective of the Study

Each research study has its own specific purpose. It is like to discover to Question
through the application of scientific procedure. But the main aim of our research to
find out the truth that is hidden and which has not been discovered as yet. My
research study has following objectives:

 To Measure The Level of Satisfaction of Retail Banking Customers.

 To identify the factors which affect the customer satisfaction level in retail
banks.
 To study about the competitive position of ICICI Bank in Competitive Market.
 To Study the customers attitude towards the financial products of the ICICI
Bank.
 To Study the customers opinion towards the services provided by the ICICI
Bank.
 To study about the effectiveness & efficiency of ICICI Bank in relation to its
competitors.

71
  To study about whether people are satisfied with ICICI Bank Services &
Management System or not.

Type of Research:-

Descriptive Research: Descriptive research includes fact finding enquiries of

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

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

Sample Size & Method Of Selecting Sample:-

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

Scope of the study:-

 The study is specific only to retail banking in India.
 Understand different facilities provided by the bank to the customers.
 To do the careful study of steps which bank takes to attract the customers.
 To study how bank are working for the development of the population and the
economy.
 The study is also useful to the bank to formulate a systematic structure for providing
facilities to the customers.

72
 It informs customers about banks progressive attitude towards customers.
 Understand the overall performance and progress of the bank.
 The study also relates To Customer Satisfaction and Its Related Factors. The factors
studied are:
 Service provided by the bank.
 The Image or Personality of the Bank.
 Convenience Provided To The Customers.
 Pricing policies of the bank.
 Maintenance Of Relationship With The Customers

Limitations of the Study:-

 The overall data collected through one branch of the bank that is Vidhyadhar Nagar
Branch Jaipur. Therefore it makes some limitations to collect the data and analyze.
 A customer‘s satisfaction towards the Branch is considered for study, hence the
structure; other concepts of the banks are excluded for the detail study.
 The study is on the information collected from bank, during very short period of the
case study work. So only limited data is collected and no detailed study about case is
carried out.
 The study considered only the customers satisfaction, so other concepts of the banks
are excluded.

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 FINDINGS

From the details of the study, we can enumerate the observation of the project report i.
e.-customers satisfaction towards the ICICI Bank, Jaipur in the form of finding as
below.

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

74
Data Analysis & Interpretation

Chart 1 AGE OF RESPONDENTS:-

Percentage Of Respondent
19 – 28 29 – 38 39 – 48 49 – 58 59 – 68 69 – 78
2%
0%

12%

12%

56%

18%

CONCLUSION:-In this pie chart,option 5 is selected by most of the people.

75
Chart 2DIFFERENCIATION OF THE RESPONDENTS INTO MALE AND
FEMALE:-

PERCENTAGE OF RESPONDENTS

MALE RESPONDENTS FEMALE RESPONDENTS

26%

74%

CONCLUSION:-In this pie chart, most of the respondents are male.

76
Chart 3DIFFERENCIATION OF RESPONDENTS BASED ON THEIR
OCCUPATION

PERCENTAGE OF RESPONDENTS
STUDENTS EMPLOYEES RETIRED PERSONS

10%
15%

75%

CONCLUSION;-In this pie chart, mostly employees are there.

77
Chart 4What the Peoples think about the banks

People Think About The Bank

Security Saving Imposition Of A Burden Of Expenses Others

20%
30%

10%

40%

Conclusion:- In this pie chart, we have seen that saving option is selected.

78
Chart-5Customer have Account with ICICI Bank

5%
25% CURREN
20%
T
SAVING

LOAN

OTHERS
50%

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

79
Chart-6Attributes compelled by the customers to open saving account in any
bank

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

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Chart-7Customers having Bank Account With ICICI Bank From how many
years

Customer Having Bank Alc

0 - 1 Years 2 - 5 Years 6 - 10 Years

10%
20%

70%

Conclusion:-

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

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Chart-8Reason for preference of ICICI Bank

ICICI BANK

Support To
Customer
30%

Quality &
Services
50%
Quick
Transaction
20%

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

82
Chart-9Medium for customer awareness about the services provided by ICICI
Bank

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

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Chart-10Thinking of the people about the Banks

People Think About Bank

Security Saving Imposition of a burden of expenses Others

11%
7%

49%

33%

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

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Chart-11Suitability of processing of loan for the customers

Customer Using Services Offered By

Their Bank
Yes NO Can Not Say

10%

30%

60%

Conclusion:-With the above analysis, it is found that 60% customers feel suitability
with the processing of loan and 30% customers feel unsuitability & 10% can’t say
about this.

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Chart-12Opinion of the customers about the processing charges of loan

HIGH LOW
30% 20%

MEDIUM
50%

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

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Chart-13Type of loan Preferred by the customers of ICICI Bank

HOUSING LOAN PERSONAL CAR LOAN EDUCATION

8%
20%

2%

70%

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

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Chart-14Customers Opinion about the interest rate charged on loan by the
ICICI bank

HIGH LOW
30% 30%

AVERAGE
40%

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

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Chart-15Internet banking Services availed by the customers of ICICI Bank

internet banking

Yes
30%

No
70%

Conclusion:-As with above analysis, it is found that most of the customers doesn’t
use internet banking services due to lack of awareness, connectivity problems & more
complexity and only 30% customers using internet banking services of ICICI bank.

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Chart-16Reasons for not using Internet banking Service by the customers

Services
LACK OF AWARENESS
CONNECTIVITY PROBLEM
MORE COMPLEX

25%
40%

35%

Conclusion:-As with above analysis, it is found that those customers who doesn’t use
internet banking services most of them doesn’t know about internet banking services
and 35% doesn’t use due to connectivity problem & 25% customers doesn’t use
internet banking services due to more complexity.

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Chart-17Customer opinion towards the financial services provided by the ICICI
Bank

EXCELLANT VERY GOOD GOOD AVERAGE

10% 20%

40%
30%

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

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Chart-18Level of Customer satisfaction towards the services provided by ICICI
Bank

Extremely
Dissatisfaction Satisfaction
Extremely
8%
Satisfaction
12%

Dissatisfaction
26%
Satisfaction
34%

Moderate
20%

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

92
Chart 19What is your opinion about the processing charges of loan

ICICI Bank Processing Charges Of Loan

Low
High 20%
25%

Medium
55%

Conclusion:-In this pie chart, mostly option medium is selected(55%).

93
CHART20The process of loan is suitable to you

Process Of Loan Is Suitable

No
30%

Yes
70%

Conclusion:-In this pie chart, mostly option yes is selected(70%).

94
 CONCLUSION

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

95
 SUGGESTIONS

1. The companyshould adoptbest marketing strategy to expansion the market.

2. To increases its branches.
3. To increases more activity rather than banking system.
4. To make good relationship with its customer.
5. Tomake effort for increasing the awareness about the internet banking among the
customers
6. To reduces the interest rate of loan process.
7. To reduces the minimum amount of maintaining the account.

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Questionnaire

1. NAME

2. AGE

3. OCCUPATION

4. SEX
MALE FEMALE

5. What the people think about the bank

Security saving Imposition Of A Burden OF Expenses
Others

6. Customer have Account with ICICI Bank

Current Saving Loan Others

7. Customers having Bank Account With ICICI Bank From how

many Years
0 -1 Years 2 - 5 Years 6 - 10 Years

8. Reason for preference of ICICI Bank

Quality & Services Support To Customer
Quick Transaction

9. Medium for customer awareness about the services provided by

ICICI Bank
Adtiesment Friends& Relatives Selling agent Others

10. Thinking of the people about the Banks

Security Saving Imposition of a burden of expensesOthers

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 11.Suitability of processing of loan for the customer
Yes no can not say

11. Opinion of the customers about the processing changes of loan

High Low Medium

12. Type of loan Preferred by the customer of ICICI Bank

Housing loan personal Car loan Education

13. Customer Opinion about the interest rate charged on loan by the
ICICI Bank
High Low Average

14. Internet banking Services availed by the customer of ICICI Bank

Yes no

15. Reason for not using Internet banking Services by the customers
Lack of Awareness Connectivity Problem More complex

16. Customer Opinion towards the financial services provided by the

ICICI Bank
Excellent Very Good Good Average

17. Level of Customer satisfaction towards the Services provided by

ICICI Bank
Moderate Dissatisfaction Satisfaction Extermely
Satisfaction Extremely dissatisfaction

18. What is your opinion about the processing charges of loan

High Low Medium

19. The process of loan is suitable to you

No YES

98