A TRAINING REPORT ON

ANALYSIS OF FINANCIAL SERVICES & TRANSACTION RELATED TO BANKING

COMPUTED AT ICICI BANK LIMITED

Submitted under partial fulfillment of the two year of degree of post graduate in MBA (GLOBAL MARKET & INVESTMENT MANAGEMENT) in AMEI (amar mangal educational institution) prist university Thanjavaur, Tamilnadu, INDIA.

Submitted to Dr. Rakesh Sharma co-ordinator AMEI-jodhpur

Submitted by Raju Heda MBA (GM&IM) CA310MBA71301 Department of Management

AMEI AMAR MANGAL EDUCATIONAL INSTITUTE JODHPUR PREFACE

Summer training is an important part of the MANAGEMENT curriculum. The MBA course summer training helps a students getting acquainted with the manner in which his/her knowledge is being practically used outside his/her institute and this is normally different from what he/she has learnt from books. Hence, when the student switches from the process of learning to that of implementing his/her knowledge, he/she finds an abrupt change. This is exactly why summer training session during the MBA. Curriculum becomes all the more important. Summer training is prescribed for the student of management college as a part of the two year degree course of engineering by the AICTE. We are required to undergo summer training for a period of 45 days after the completion of the 1st year. The main objective of summer training are:

Correlate courses of study with the way industry or potential workplace operates its business or work using technology.

Work on implementing what has been learned in school, especially true for Computer Science under-graduates.

The world moves from industrial age to intellectual property based wealth generation structures i.e. factories replaced by call-centers and technology companies viz. chip design, software and bio-informatics. Tools for generating this wealth in the form of software, (patents) and documented processes is available easily in the hands of people hitherto on the wrong side of longitudes and time-zones or urban-rural divides.

This training report describes in detail the training after the 1st year session, which I completed at the ICICI BANK LIMITED. The report also gives the information about the organization and its working alongwith the project undertaken in the training period.

ACKNOWLEDGMENT
The satisfaction Euphoria that accompany the successful completion of any work would be incomplete unless we mention the name of the person, who made it possible, who constant guidance and encouragement seryed as a beckon of light and crowned our efforts with success. I consider it a privilege to express through the pages of this report, a few words of gratitude and respect to those who guided and inspired in the completion of this project.

I am deeply indebted to Mr. AMIT LAHOTI (BRANCH MANAGER) for giving me the opportunity to undergo my project in their esteemed organization and they give me timely suggestions & valuable guidance. They constantly encouraged me and showed the right path from day first till the completion of my project.

I had visited almost all markets of Bikaner and collected information of the project. I have also done promotional activities under the constant guidance of my project guide.

In the last but not the least, my grateful appreciation is also extended to.

However, I accept the sole responsibility for any possible errors of omission and would be extremely grateful to the readers of this project if they bring such mistakes to my notice.

DECLARATION

I am RAJU HEDA studying in AMAR MANGAL INSTITUTE OF PROFESSIONAL STUDIES hereby declare that I have done a project on ANALYSIS OF FINANCIAL SERVICES & TRANSACTION RELATED TO BANKING . As required by the university rules, I state that the work presented in this thesis is original in nature and to the best my knowledge, has not been submitted so far to any other university. Whenever references have been made to the work of others, it is clearly indicated in the sources of information in references.

Student ( RAJU HEDA )

Place: JODHPUR Date: AUGEST, 2011

EXECUTIVE SUMMARY

Banks are the Financial Institution which satisfies the individual & group goals with proper systems of rules, regulations, policies, services, procedures & strategies. To achieve the goals and objectives the main component of the banks are the customers. Banks are the diversified financial services company that provide a range of services to customer including retail banking, venture capital, private equity, working capital finance etc. The aim of the banks is to provide state-of-the-art, low cost and efficient banking services, with a focus on increasing fee-based income. New innovative products are been offered, even a small investor is able to invest in such products. Indias financial services sector is expected enjoy generally strong growth during coming years, driven by rising personal incomes, financial sector liberalization and the growth of a more consumer oriented, credit-oriented culture. This is expected to lead to increasing demand for financial products, including consumer loans as well as investment products.

INDEX
S.N. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. TABLE OF CONTENT Introduction of Industry Introduction of Banks History of ICICI Bank Introduction of ICICI Bank Board of Directors & Committees Group Companies of ICICI Corporate Social Responsibilities Research Methodology Credit Rating Risk Management SWOT Analysis Analysis & Interpretation Conclusion Suggestion Annexure P.N.

1. INTRODUCTION OF THE INDUSTRY

Banking in a traditional sense is the business of accepting deposits of money from public for the purpose of lending and investments. These deposits can have a distinct feature of being withdrawal by cheques, which no other financial institution can offer.

In addition, banks also offer various other financial services, which includes-

Issuing Demand Draft and Travelers Cheques Credit Card Collection of Cheques, Bills of Exchange Safe Deposit Lockers Issuing Letters of Credit and Letters of Guarantee Sale and Purchases of Foreign Exchange Custodial Services Investment and Insurance services

The business of banking is highly regulated since banks deal with money offered to them by the public and ensuring the safety of this public money is one of the prime responsibilities of any bank. That is why banks are expected to be prudent in their lending and investment activities. Every bank has Compliance department, which is responsible to ensure that all the services offered by the banks and the processes followed are in compliance with the local regulation and the banks corporate policies:

Banking Regulation Act, 1949 Foreign Exchange Management Act, 1999 Indian Contract Act, 1872 Negotiable Instrument Act, 1881

Banks lend money either for productive purposes to individuals, firm corporate etc. or for buying house property, cars and other durable and for investment purposes to individuals and others.

However banks do not finance any speculative activity. Lending is risk taking; having prudent norms for lending should cover the risk. The depositors of banks are also assured of their money by deploying some percentage of deposits in statutory reserve like SLR and CRR.

In 2008, when the global banking industry was being shaken by the tremors of the unfolding financial crisis, only one bank in India felt the aftershocks, and this, only because one of its overseas subsidiaries had made an opportunistic bet on debt issued by the failed investment bank Lehman Brothers. While the market valuations of all the leading banks in India slipped as equity prices tumbled, their businesses were not affected and their balance sheets remained healthy.

The Indian banking industry is also well capitalized and capital ratios are above the global average. The average tier-1 capital adequacy ratio of the Indian banking industry is above 10%, when compared to the Basel III norm of 8.5% including the contingency buffer. The average total capital of banks in India stood at 14.5% as of March 31, 2010, compared to the Basel III requirement of 10.5%.

Fast Facts Indias banking industry has evolved over a long period of more than two centuries.

Indias banking industry is considered to be very stable with healthy balance sheets and low exposure to risky assets. The global financial crisis did not affect the Indian banks significantly.

Even after sustained growth since the nineties, the share of consumer credit remains very low in total bank loans.

The banking sector in India has a relatively high proportion of women CEOs. The chief executives of leading domestic lenders ICICI Bank and Axis Bank, besides the country heads of HSBC, JP Morgan, UBS, and RBS are all women. Until recently, two among the Reserve Bank of Indias four deputy governors were also women.

2. INTRODUCTION TO BANK

A bank has been described as an institution engaged in accepting deposits and granting loans. It is the institution which deals in money and credit. It can also be described as an institution which borrows idle resources, makes fund available to those who need it and helps in cheap remittance of money from one place to another. In the modern time term bank is used in wider term. Now it does not refer only to particular place of lending and depositing money but it also acts as an agent which looks after the various financial problems of its customers.

2.1 HISTORY OF BANKS: The banking system in India is based on British banking company which is largely branch banking. Commercial banks in India were started during the latter half of 19th century Bank of Bengal, Bank of Bombay and Bank of Madras were later amalgamated to form one bank called as Imperial bank of India under the Imperial bank of India Act 1920. The Imperial bank carried with business of commercial bank manages the public debt office of central and state government. The second half of 19th century saw establishment of Bank of Baroda, Allahabad bank, and Punjab National Bank. These banks were set up by merchants and traders to combined trading with banking.

These led to the series if failures of banks. The strengthening of banking system took place after the establishment of Reserve Bank of India, 1939 as is empowers to regulate the banking money, inspection of mergers and acquisition in terms of Banking Companies Act 1949 which later came to be known as Banking Regulation Act 1949.

2.2 FUNCTIONS OF BANKS

Though borrowing and lending constitute the main functions of banking, yet they are not only functions of commercial banks. Commercial banks are involved in diversified activities and perform varieties of function. The functions of a modern bank are classified under the following heads:

CHART: FUNCTION OF BANKS

ACCEPTING OF DEPOSITS

AGENCY FUNCTIONS

FUNCTION OF BANKS

ADVANCE OF LOANS

OTHER FUNCTIONS

2.3 BANKING PRODUCTS

Banks in India have traditionally offered mass banking products. Most common deposit products being Savings Bank, Current Account, Term deposit Account and lending products being Cash Credit and Term Loans. Due to Reserve Bank of India guidelines, Banks have had little to do besides accepting deposits at rates fixed by Reserve Bank of India and lend amount arrived by the formula stipulated by Reserve Bank of India at rates prescribed by the latter. PLR (Prime lending rate) was the benchmark for interest on the lending products. But PLR itself was, more often than not, dictated by RBI. Further, remittance products were limited to issuance of Drafts, Telegraphic Transfers, and Bankers Cheque and Internal transfer of funds.

In view of several developments in the 1990s, the entire banking products structure has undergone a major change. As part of the economic reforms, banking industry has been deregulated and made competitive. New players have added to the competition. IT revolution has made it possible to provide ease and flexibility in operations to customers. Rapid strides in information technology have, in fact, redefined the role and structure of banking in India.

Further, due to exposure to global trends after Information explosion led by Internet, customers - both Individuals and Corporate - are now demanding better services with more products from their banks. Financial market has turned into a buyer's market. Banks are also changing with time and are trying to become one-stop financial supermarkets.

A few foreign & private sector banks have already introduced customized banking products like Investment Advisory Services, SGL II accounts, Photo-credit cards, Cash Management services, Investment products and Tax Advisory services. A few banks have gone in to market mutual fund schemes. Eventually, the Banks plan to market bonds and debentures, when allowed. Insurance peddling by Banks will be a reality soon. The recent Credit Policy of RBI announced on 27.4.2000 has further facilitated the entry of banks in this sector. Banks also offer advisory services termed as 'private banking' - to "high relationship - value" clients.

2.4 INTRODUCTION TO FINANCIAL SERVICES The Indian financial services industry has undergone a metamorphosis since 1990. During the late seventies & eighties, the Indian financial services industry was dominated by commercial banks and other financial institution which cater to the requirements of the Indian industry. The economic liberalization has brought in a complete transformation in the Indian financial services industry. The term Financial Services in a broad sense means mobilizing and allocating savings. Thus it includes all activities involved in the transformation of savings into investment. The financial service can also be called financial intermediation. Financial intermediation is a process by which funds are mobilized from a large number of savers and make them available to all those who are in need of it and particularly to corporate customers. Thus, financial service sector is a key area and it is very vital for industrial developments. A well developed financial services industry is absolutely necessary to mobilize the savings and to allocate them to various investable channels and thereby to promote industrial development in a country. Financial services, through network of elements such as financial institution, financial markets and financial instruments, serve the needs of individuals, institutions and corporate. It is through these elements that the functioning of the financial system is facilitated. Considering its nature and importance, financial services are regarded as the fourth element of the financial system.

2.5 FEATURES OF FINANCIAL SERVICE

Customer-Oriented: Like any other service industry financial service industry is also a customer-oriented one. That customer is the king and his requirements must be satisfied in full should be the basic tenent of any financial service industry. It calls for designing innovative financial products suitable to varied riskreturn requirements of customer.

Intangibility: Financial services are intangible and therefore, they cannot be standardized or reproduced in the same form. Hence, there is a need to have a track record of integrity, reputation, good corporate image and timely delivery of services.

Simultaneous Performance: Yet another feature is that both production and supply of financial services have to be performed simultaneously. Therefore, both suppliers of services and consumers should have a good rapport, clear-cut perception and effective communication.

 Dominance of Human Element: Financial services are dominated by human element and thus, they are people-intensive. It calls for competent and skilled personnel to market the quality financial products. But, quality cannot be homogenized since it varies with time, place and customer to customer.

Perishability: Financial services are immediately consumed and hence inventories cannot be created. There is a greater need for balancing demand and supply properly. In other words, marketing and operations should be closely inter-linked.

2.6 IMPORTANCE OF FINANCIAL SERVICES Economic Growth: The financial service industry mobilizes the savings of the people and channels them into productive investment by providing various services to the people. In fact, the economic development of a nation depends upon these savings and investment.

Promotion of Savings: The financial service industry promotes savings in the country by providing transformation services. It provides liability, asset and size transformation service by providing large loans on the basis of numerous small deposits. It also provides maturity transformation services by offering shortterm claim to savers on their liquid deposit and providing longterm loans to borrowers.

Capital Formation: The financial service industry facilitates capital formation by rendering various capital market intermediary services capital formation in the very basis for economic growth. It is the principal mobilizer, of surplus funds to finance productive activities and thus it promotes capital accumulation.

 Provision of Liquidity: The financial service industry promotes liquidity in the system by allocating and reallocating savings and investment into various avenues of economic activity. It facilitates easy conversion of financial asset into liquid cash at the discretion of the holder of such assets.

Financial

Intermediation:

The

financial

service

industry

facilitates the function of intermediation between savers and investors by providing a means and a medium of exchange and by undertaking innumerable services.

Contribution to GNP: The contribution of financial services to GNP has been going on increasing year after year in almost all countries in recent times.

Creation of Employment Opportunities: The financial service industry creates and provides employment opportunities to millions of people all over the world.

2.7 SOURCES OF REVENUE

Accordingly, there are two categories of sources of income for a financial service company namely: fund based & fee- based. Fund-based income comes mainly from interest spread, lease rentals, income from investments in capital market and real estate. On the other hand, fee based income has its sources in merchant banking, advisory services, custodial services, loan syndication etc. income has its sources in merchant banking, advisory services, custodial services, loan

syndication etc. A major part of income is earned through fund-based activities. At the same time, it involves a large share of expenditure in the form of interest & brokerage. It means that such companies should have to compromise the quality of its investment. On the other hand feebased income does not involve much risk.

CLASSIFICATION OF FINANCIAL SERVICES

FUND BASED ACTIVITIES

FEE BASED ACTIVITIES

~ Leasing ~ Hire Purchase ~ Discounting ~ Loans ~ venture Capital ~ Housing ~ Factoring

~ Issue Management ~ Portfolio Management ~ Capital Management ~ Loan Sysndication ~ Merger & Acquisition ~ Corporate Councelling ~ Foreign collaboration

2.8 OBJECTIVES OF FINANCIAL SERVICES Fund raising: Financial services help to raise the required funds from a host of investors, individuals, institution and corporate. For this purpose, various instruments of finance are used.

Funds deployment: An array of financial services is available in the financial markets which help the players to ensure an effective deployment of funds raised. Services such as bill discounting, parking of short-term funds in the money market, credit rating &securitization of debts are provided by financial services firms in order to ensure efficient management of funds.

Specialized services: The financial service sector provides specialized services such as credit rating, venture capital financing, lease financing, mutual funds, credit cards, housing finance, etc besides banking and insurance. Institutions and agencies such as stock exchanges, non-banking finance companies, subsidiaries of financial institutions, banks & insurance companies also provide these services.

 Regulation: There are agencies that are involved in the regulation of the financial services activities. In India, agencies such as the Securities and Exchange Board of India (SEBI), Reserve Bank of India (RBI) and the Department of Banking and Insurance of the Government of India, regulate the functioning of the financial service institutions.

Economic growth: Financial services contribute, in good measure, to speeding up the process of economic growth & development.

2.9 CAUSES OF FINANCIAL INNOVATION

Financial intermediaries have to perform the task of financial innovation to meet the dynamically changing needs of the economy. There is a dire necessity for the financial intermediaries to go for innovation due to following reasons:

Low profitability: The profitability of the major financial intermediary, namely banks has been very much affected in recent times. There is a decline in the profitability of traditional banking products. So, they have compelled to seek out new products which may fetch high returns.

Keen competition: The entry of many financial intermediaries in the financial sector market has led to severe competition among themselves. This keen competition has paved the way for the entry of varied nature of innovative financial products so as to meet the varied requirements of the investors.

 Economic liberalization: Reform of the financial sector constitutes the most important component of Indias programme towards economic liberalization. The recent economic

liberalization measures have opened the door to foreign competitors to enter into our domestic market. Deregulation in the form of elimination of exchange controls and interest rate ceilings have made the market more competitive. Innovation has become a must for survival. Improved communication technology: The communication technology has become so advanced that even the worlds issuers can be linked with the investors in the global financial market without any difficulty by means of offering so many options and opportunities. Hence, innovative products are brought into the domestic market in no time. Customer service: Nowadays, the customers expectations are very great. They want newer products at lower cost or at lower credit risk to replace the existing ones. To meet this increased customer sophistication, the financial intermediaries are constantly undertaking research in order to invent a new product which may suit to the requirement of the investing public. Innovations thus help them in soliciting new business.

 Global impact: Many of the providers and users of capital have changed their roles all over the world. Financial intermediaries have come out of their traditional approach and they are ready to assume more credit risks. As a consequence, many innovations have taken place in the global financial sector which has its own impact on the domestic sector also.

Investor awareness: With a growing awareness amongst the investing public, there has been a distinct shift from investing the savings in physical assets like gold, silver, land etc. to financial assets like shares, debentures, mutual funds etc. To meet the growing awareness of the public, innovation has become the need of the hour.

2.10 PRESENT SCENARIO OF FINANCIAL SERVICES Conservatism to dynamism: At present, the financial system in India is in a process of rapid transformation, particularly after the introduction of reforms in the financial sector. The main objective of the financial sector reforms is to promote an efficient, competitive and diversified financial system in the country. This is essential to raise the allocative efficiency of available savings and to promote the accelerated growth of the economy as a whole. The emergence of various financial institution and regulatory bodies has transformed the financial services sector from being a conservative industry to a very dynamic one.

Emergence of Primary Equity Market: The capital markets have become a popular source of raising finance. The aggregate funds raised by the industries have gone from Rs. 5976 crore in 1991-92 to Rs. 32382 crore in 2006-07. Thus the primary market has emerged as an important vehicle to channelize the savings of the individuals and corporates for productive purposes and thus to promote the industrial & economic growth of our nation.

 Concept of Credit Rating: The investment decisions of the investors have been based on factors like name recognition of the company, reputation of promoters etc. now, grading from an independent agency would help the investor in his portfolio management and thus, equity grading is going to play a significant role in investment decision making. Now it is mandatory for non-banking financial companies to get credit rating for their debt instruments. The major credit rating agencies functioning in India are: Credit Rating Information Services of India Ltd. Credit Analysis and Research Ltd. Investment Information and Credit Rating Agency. Duff Phelps Credit Rating Pvt. Ltd. Process of Globalization: The process of globalization ha paved the way for the entry of innovative financial products into our country. The government is very keen in removing all obstacles that stand in the way of inflow of foreign capital. India is likely to enter the full convertibility era soon. Hence, there is every possibility of introduction of more and more innovative financial services in our country.

 Process of Liberalization: The government of India has initiated many steps to reform the financial services industry. The Government has already switched over to free pricing of issues from pricing issues by the Controller of capital issues. The interest rates have been deregulated. The private sector has been permitted to participate in banking and mutual funds and the public sector undertakings are being privatized. The financial service industry in India has to play a positive and dynamic role in the years5 India has to play a positive and dynamic role in the years to come by offering many innovative products to suit to the varied requirements of the millions of prospective investors spread throughout the country.

3. HISTORY OF ICICI BANK 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 longterm project financing to Indian businesses.

In the 1990s, ICICI transformed its business from a development financial institution offering only project finance to a diversified financial services group offering a wide variety of products and services, both directly and through a number of subsidiaries and affiliates like ICICI Bank. In 1999, ICICI become the first Indian company and the first bank or financial institution from non-Japan Asia to be listed on the NYSE.

After consideration of various corporate structuring alternatives in the context of the emerging competitive scenario in the Indian banking industry, and the move towards universal banking, the managements of ICICI and ICICI Bank formed the view that the merger of ICICI with ICICI Bank would be the optimal strategic alternative for both entities, and would create the optimal legal structure for the ICICI group's universal banking strategy. The merger would enhance value for ICICI shareholders through the merged entity's access to low-cost deposits, greater opportunities for earning fee-based income and the ability to participate in the payments system and provide transaction-banking services. The merger would enhance value for ICICI Bank shareholders through a large capital base and scale of operations, seamless access to ICICI's strong corporate relationships built up over five decades, entry into new business segments, higher market share in various business segments, particularly fee-based services, and access to the vast talent pool of ICICI and its subsidiaries.

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

ICICI Bank has formulated a Code of Business Conduct and Ethics for its directors and employees.

4. INTRODUCTION OF THE ICICI BANK

ICICI Bank is the largest private sector bank in India in terms of market capitalization. It is also the second largest bank in India in terms of assets with a total asset of Rs. 4,062 billion (US$ 91 billion) as on March 31, 2011, the total profit after tax has been Rs. 51.51 billion (US$ 1,155 million) for the year ended March 31, 2011. Formerly known as Industrial Credit and Investment Corporation of India, ICICI Bank has an extensive network of 2,533 branches with about 6,700 ATMS located across India and in 18 other countries. ICICI Bank serves about 24 Million customers throughout the world. It is considered as one of the Big Four Banks in India along with State Bank of India, HDFC Bank and Axis Bank.

ICICI Bank provides a wide range of banking products and financial services to its retail and corporate customers. It has a wide variety of delivery channels and specialized affiliates and subsidiaries that ensure the flow of its offerings in the areas like investment banking, venture capital, life and non-life insurance and asset management. This bank is also Indias largest credit card issuer. The equity share of ICICI Bank is listed on various stock exchanges like NSE, BSE, Calcutta Stock

Exchange and Vadodara Stock Exchange etc. Its ADRs are also listed on the New York Stock Exchange.

ICICI Bank also has the largest international balance sheet among all the banks in India. It is also expanding its business in the overseas market at an enviable pace. In Q2 September 2008, ICICI Bank recorded a 1.15% growth in net profit over Q2 September 2007 to reach at Rs 1,014.21crores. The current and savings account (CASA) ratio of bank also went up from 25% in 2007 to 30% in 2008

Vision Our vision is a world free of poverty in which every individual has the freedom and power to create and sustain a just society in which to live.

Mission Our mission is to create and support strong independent organisations which work towards empowering the poor to participate in and benefit from the Indian growth process.

3.1 Branches & ATM ICICI Bank has a wide network both in Indian and abroad. In India alone, the bank has 2,533 branches and about 6,700 ATMs. Talking about foreign countries, ICICI Bank has made its presence felt in 18 countries - United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International Finance Centre and representative offices in United Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia. The Bank proudly holds its subsidiaries in the United Kingdom, Russia and Canada out of which, the UK subsidiary has established branches in Belgium and Germany. 3.2 PRODUCTS & SERVICES ICICI Bank offers a host of products and services to its clients. The various types of services are as follows: A) Deposits ICICI bank offers a wide rang of banking account such as current, saving, life plus, senior recurring deposit, young stars, salary account etc. tailor made for every customer segments, from children to senior citizen. Convenience and case to access are the Benefit of icici bank account.

CURRENT ACCOUNT:-

Basically a current account is opened for artificially created entity. This artificially created entity can be a firm, sole proprietorship, association, partnership or any thing else. account. Interest is also paid on the current

Tools for opening of the Current accounts

Walk in: - There was a huge number of walk in customers in KMB, we use to open their current accounts

References: - References were being collected from the leads which we were having and from other sources like Chartered Accountants, Relatives, Friends etc.

Cold Calls: - This refers to the telephonic call, which we use to make; we use to take appointment before approaching the person.

SAVINGS ACCOUNT:-

ICICI bank savings account has been designed to offer you a valuable banking experience. Under savings accounts, bank offers various facility like Debit-cum-ATM card to withdraw cash from any ATM. Money Multiplier facility that enables the transfer of your idle money into a high interest savings account. Further there are Internet banking facility, 24-hour Customer Care service, Mobile banking, Standing instructions, Nomination facility and Bank@home facility that allows you to order cash deposits and withdrawals from home. The services include cash / cheques deposits and cash/DD/PO delivery at home, DD call and collect facility. An ICICI Bank Savings Account offers you a valuable banking experience.

Debit-cum-ATM Card Money Multiplier Facility Internet Banking Customer Care Mobile Banking Nomination facility

FIXED DEPOSITS:-

ICICI bank has a set of choice of investment plans attached to fixed deposit. You get a wide range of tenures along with auto renewal facility on maturity of deposits. You can open term deposit with nominal amount of Rs 1000/- only. Bank has a loan facility against deposit. The re-investment plans on fixed deposits are lucrative as re-investment fixed deposit rates do not change in fact works like a recurring debit account transaction.

Fixed Deposit Articles Credit profile and its effect on loan rates in India. Fixed Deposits: Safest instrument to invest Complete guide to TDS on fixed deposits in India Carnival of Indian Personal Finance Bogs Medical Insurance: Save tax along with health Tax saver fixed deposits in India earn you more Things to know before retirement J&K Bank raises PLR

B) Cards ICICI Bank is Indias largest issuer of credit cards. It also offers other types of card. The various cards offered by ICICI bank are as follows: Consumer Cards Credit Cards Travel Cards Debit Cards Commercial Cards Corporate Cards Prepaid Cards Purchase Cards Distribution Cards Business Cards

CREDIT CARED:ICICI Bank is the second-largest bank in India. With an extensive network of 2533 branches and 6700 ATM's in India, ICICI Bank has an international presence in 18 countries. Among its highly accomplished banking and financial services are their credit cards. ICICI credit card is one of the top-rated ones in India. With a wide range of offers, ICICI Bank credit cards come as:

Premium Cards Classic Cards Value For Money Cards Co Branded Cards Affinity Cards EMI Cards

Each ICICI Bank credit card comes with special offers; bill payment & balance transfer options and reward points. The bank also offers online application and credit card status check services through the ICICI Bank credit card website. For this, you just need to login by punching in your ICICI Bank credit card number and all services offered by ICICI Bank India including bill, payment, balance transfer, online statement and many more are available at your fingertips.

DEBIT CARD:ICICI Bank Debit Card gives you the advantages of an ATM card and a credit card combined into a single card. The package deal includes forethought of Any Time Money services and the cashless spending facility of a credit card accepted widely. With ICICI Bank Debit Card, you can enjoy cashless shopping, traveling, dining or other leisure activities without having to carry sizeable cash. Whenever you swipe the ICICI ATM cum debit card, the amount is debited directly to your ICICI Bank account.

ICICI Bank Debit Cards are accepted at over 3.5 lakh merchant establishments across the country and 24 million shops across the globe with ATM compatibility at over 3000 ICICI Bank ATMs, 18000 VISA/ MasterCard ATM locations in India and over a million VISA ATMs globally. Your ICICI Bank Debit Card bears your signature that is duly matched by the merchandiser to the one on the bill slip you are supposed to sign-in while making payment through your card for any purchases you make.

In case of loss or theft of your ICICI Bank Debit Card, all you are required to do is report to the 24 x 7 Customer Care of ICICI Bank about the mishap. This way ICICI Bank protects you from any financial liability arising from any transaction made on the lost card from the time of reporting.

TRAVEL CARD:-

ICICI Bank Travel Card is a pre-paid card that is available through payment in India currency (INR) and withdrawal in any local currency across the globe. ICICI Travel Cards have made travel abroad much more convenient. The available currencies include US Dollars ($), Australian Dollars, Canadian Dollars, Euros, Pound, Sterling, Swiss Francs and many more. Rest assured of the widest choices with ICICI Travelers Card.

C) Loans
ICICI bank offers a range of deposits solution to meet varying needs at every stage of life. It offers a range of tenure and other features to suit all requirements. HOME LOAN:-

ICICI Bank Home Loans, offer unbeatable benefits to ensure that you get the best deal without any hassles.

As one of the leading home loan provider, ICICI Bank understands how special building a new home is for you and our Home Loan help you lay the foundation for your dream home.

ICICI offers you the most convenient home loan plans to suit your needs. With so many attractive features in every type of home loan we offer, creating the home you always wanted is no longer a distant dream. Some of our key benefits are:

Guidance through out the process Home loan amounts suited to your needs Home Loan tenure up to 20 years Simplified Documentation Doorstep Service Attractive interest rates

PERSONAL LOAN:There is some emergency and you need ready funds immediately ICICI bank provides you personal loan for all your financial needs. Bank offers loan at attractive interest rate with 12-60 months repayment options, faster processing. There is special offer for existing bank customers. ICICI Bank personal loan can be used for any legitimate purpose. The extent of personal loan that one can get depends on one's income and repayment capacity. Repayment track record on existing home loan or car loan or personal loan or credit card helps a borrower to get better rates and higher amount. Highlights of ICICI Bank personal loan Loan up to 15 laces. No security/guarantor required. 12-60 Months repayment options. Prepayment of the loan is possible after 180 days of availing. Part pre-payment is not allowed.

VEHICLE LOAN:ICICI Bank offers car loans up to 90% of the ex-showroom price of the car. Loan tenure can be extended up to 6 years which makes it easier to repay. ICICI Bank is the top financier for car loans in India. The bank has a network of more than 1800 channel partners in more than 1000 locations.
Loan Amount

The loan amount depends on the car model. Minimum loan amount for a new car loan is Rs.1 lakh. For a used car the bank arranges finance for a maximum of 85% of the valuation of the car. Minimum loan amount sanctioned for a used car loan is Rs. 75000. For used cars the maximum tenure can be five years.

Interest Rates & Documents Required

Car Loans are available with Fixed and Floating Interest Rates. The amount of loan sanctioned depends on the strength of income related documents. On absence of income proof, loan could be sanctioned on producing the bank statement, loan repayment track record, etc. Income Proof has to be submitted for last two years. Prepayment of loan is allowed. However, one is not permitted to prepay in parts. ITR, Form 16, and Salary Slip can be submitted as the proof of income. One also has to submit proof of bank account continuity.

D) Investments Along with deposit product and loan offering, ICICI bank assist you to manage its. Fianc by providing various investment option ranging from ICICI bank tax saving bands to quit investment through initial public offer and investment in pure gold ICICI bank facilitates foiling investment. ICICI Bank Tax Saving Bounds. Government of India bonds. Investment on mutual funds. Initial Public Offer by corporate Investments in Gelds. Foreign Exchange Services Senior Citizen Saving Scheme, 2004

MUTUAL FUNDS:ICICI Bank Mutual Funds are available in multiple forms with options of creating your own investment portfolio with the help of professionals. The ICICI Bank investment managers help you analyze your risk potential and then decide upon the mutual funds depending upon the net asset value (NAV) of various schemes.

Your money invested in ICICI Mutual Funds are used to buy securities of diverse nature, which are carefully selected by finance specialists. Diversification of you money in several types of bonds and securities ensure maximum gain even when the market is showing trends of slowdown. Profits generated through such investment are then passed on to the investors. TAX SAVING SOLOUTION:-

ICICI Tax Saving Plans offer you investment opportunities through which you can save a large amount of your hard earned income from going away as taxes. ICICI Bank provides easy tax saving options that include tax saving bonds, tax saving fixed deposits and other investments.

ICICI Tax Saving Plans are simple investment solutions that help you invest your surplus money into some kind of bonds, deposits or other schemes so that you get tax redemption under the income tax act and thereby save your money from slipping into the tax collector's hand.

GOLD INVESTMENT:-

ICICI Gold Investment Opportunities include investments in Pure Gold, Mutual Funds and Bonds that help you in obtaining certain tax benefits as well as yield you high returns on maturity of the equity investments.

ICICI Bank Pure Gold is available in select ICICI bank branches in the denominations of 2.5 g, 5 g, 8 g, 20 g, and 50 g. the biggest assurance of ICICI pure gold is the reliability of its pureness. All ICICI pure gold is 24-Carat imported from Switzerland with a 99.99% Assay Certification of highest purity levels as per the international standards. Besides this, ICICI Bank also offers gold schemes where in you have mutual funds and bonds to invest that yield sizeable returns.

E) Insurance ICICI group offers a range of insurance product to cover varying needs ranging from life, pensions and health to home, motor and travel insurance the product are made accessible to customers through a wide network of advisors banking partners. Corporate agent and brokers with the added convenience of being able to buy online.

ICICI insurance policy helps you find the assurance of a financial security in times of absolute need. ICICI insurance policies provide you the peace of mind that comes as a free gift with any insurance plan or scheme. ICICI insurance policies cover: Home Loans Loan against Property Personal Loans Car Loans Two Wheeler Loans Commercial Vehicle Loans Loans against Securities

F) NRI Services

Wherever people may be, in India or abroad, ICICI Bank has created a wide range of products and services that provide customers complete financial solutions. Helping them to make the right decisions at the right time and can be rest assured that they are in the safe and trustworthy hands of ICICI bank.

Deposit Products:

1. NRE Account:-

An NRI can open a Non-Resident External Account(NRE Account)with any bank in India. The account not only lets customers manage their money that they earn in India (as permitted by FEMA Regulations) but also of the money earned abroad. The money in the account and the interest earned on it can be sent back outside India without any authorization from RBI. The Account can be opened and funded in any permissible currency, and is later converted into Indian Rupees. This Account offers dual benefits of high returns as offered by the fixed deposits and liquidity as offered by the savings account. The Account helps customers take care of all their financial needs, quickly and conveniently. In addition to attractive rupee interest rates customers get free money transfers, easy access for the customer as well as for his/her family back in India, and a free mandate card for the loved ones in India.

Advantages of NRI Easy Rupee Account

Free and Easy money transfer through www.money2india.com from the comfort of customers home or office. Customers get attractive exchange rates every time they send money to India.

The services make accessing and tracking account simple and easy. Account can be accessed and monitored in 2 ways - By logging on to www.icicibank.com to access account round the clock - Calling the 24hour toll free number from a fixed line in India

Low minimum balance of just Rs.10,000 makes opening and maintaining an NRI Easy Rupee Account more convenient.

Mandate facility for loved ones in India so that they may access the account with an ATM Card, from over1910 ATMs and over 560 branches of ICICI Bank in India. Mandate holder also receives a cheque book.

Free International cum Debit card that gives access to 6,00,000 ATMs and over 11 million shops and merchant establishment around the globe.

2. NRO Account:-

The Non-Resident Ordinary Account (NRO Account) allows customers to hold the money they have earned in India such as rent, dividends, pensions etc. They can open the account and can fund it in any permissible currency and is later converted into Indian Rupees. NRO account offers attractive exchange rates upon conversion of foreign currency into Indian Rupees. This account to offers high returns and liquidity. However, the interest earned on the principal amount in the account can be sent back after the deductions of tax in India.

Advantages of NRO Account:

Attractive interest rates. Free money transfers. Easy access to the money for individuals and their family Free mandate facility for loved ones in India Low minimum balance of Rs.10,000 Free online bill payment of the utility bills in India.

3. FCNR Account:A Foreign Currency Non Resident Account (FCNR Account) allows customers to maintain funds as Term Deposits in various foreign currencies, thereby guarding customers against fluctuating exchange rates. Under this account both the principal amount and the interest can be sent back fully, and are taxable in India. The tenures range from 12 to 36 months.

Advantages of FCNR Account: Attractive interest rates

Minimum deposit size is USD 1000, GBP 1000, EUR 1000 or JPY 2,00,000

Loans are available upto 85% on the deposits at attractive interest rates

Automatic renewal of deposit on maturity.

4. RFC Account:By opening a Resident Foreign Currency Account (RFC Account) customers can maintain funds as Term deposits in various foreign currencies even after they have returned to India. Both the principal and the interest can be remitted outside India. The tenures range from 1month to 36months.

Advantages of RFC Account:

Attractive interest rates

Maintain accounts in 2 foreign currencies- USD & GBP

The account can opened and funded in any convertible currencies. It will be converted into one of these currencies as per the customers choice

3.3 Awards and Recognitions ICICI Bank ranked second in the financial services sector in Business World's ,"Most Respected Company Awards 2011" ICICI Bank was awarded The Asset Triple A Awards, Hongkong for: Best Domestic Transaction Bank (India) For 6th consecutive year won the Best Domestic Trade Finance Bank (India) Best Domestic Cash Management Bank (India) Best e-Commerce Bank (India) ICICI Bank is the only Indian brand to figure in the BrandZ Top 100 Most Valuable Global Brands Report 2011, second year in a row. ICICI Bank won the Best Local Bank Gold by Trade and Forfaiting Awards, UK

ICICI Bank ranked 5th in the list of "57 Indian Companies", and 288th in World Rankings in Forbes Global 2000 list

 Ms. Chanda Kochhar, Managing Director & CEO, in the list of 25 most powerful professional women of the country , by India Today ICICI Bank has won the "Banking Technology Awards 2010" at The Indian Banks Association in the following categories: "Best Financial Inclusion Initiative" (first prize) "Best Online Bank" ( runner up) "Best use of Business Intelligence" ( runner up) "Technology Bank of the year" ( runner up) ICICI Bank won the Most Admired Knowledge Enterprises (MAKE) India 2009 Award. ICICI Bank won the first place in "Maximizing Enterprise Intellectual Capital" category, October 28, 2009

ICICI Bank was one of the four Indian companies to make it to the global list of Top Companies for Leaders 2007, according to a survey conducted by Hewitt Associates in partnership with the RBL group and Fortune magazine.

ICICI Bank wins the 'Excellence in Remittance Business 2007' award by The Asian Banker

 Forbes 2000 most powerful listed companies survey ranked ICICI Bank 4th among the Indian companies and 282nd globally.

ICICI Bank wins the Asian Banker Award for Excellence in SME Banking 2009.

ICICI Bank was voted as the Most Trusted Brand among private sector banks in the 2010 Economic Times Brand Equity Most Trusted Brands Awards and ranked 7th in the list of the Top 50 service brands.

ICICI Bank received the 2010 World Finance UK award for: Excellence in Remittance Business, Worldwide Excellence in NRI Services, Worldwide Excellence in Private Banking Business, APAC Region

For a sixth time in a row, ICICI Bank has received the Most Preferred Auto Loan Brand in the Financial Services category at the CNBC Consumer Awards.

 ICICI Bank has won Gold in the Readers Digest Trusted Brands 2010 Consumer award in the Finance category for. Best Bank Best Credit Card Issuing Bank ICICI Bank amongst the top 3 to receive the FE-EVI Green Business Leaders Award, in the banking industry.

ICICI Bank wins the Asian Banker Award for Best Banking Security System.

ICICI Bank has been ranked 1st in the term money category, from a list of 38 leading Banks by the German magazine, Euro. Since commencement of business two years ago in the German market, this is the 5th certification/award including 2 certifications from Stiftung warrenttest (for Savings and Term Deposits) and three "Best Bank" rankings by Euro magazine.

5. BOARDS OF DIRECTOR & COMMITTEES

1. Board Members
Mr. K. V. Kamath, Chairman

Mr. Sridar Iyengar

Mr. Homi R. Khusrokhan

Mr. Arvind Kumar

Mr. M.S. Ramachandran

Dr. Tushaar Shah

Mr. V. Sridar

Ms. Chanda Kochhar, Managing Director & CEO

Mr. N. S. Kannan, Executive Director & CFO

Mr. K. Ramkumar, Executive Director

Mr. Rajiv Sabharwal, Executive Director

2. Director's Profiles

Chanda Kochhar Managing Director and Chief Executive Officer

N.S. Kannan Executive Director & CFO

K. Ramkumar Executive Director

Rajiv Sabharwal Executive Director

3. Board Committees

Audit Committee
Mr. SridarIyengar, Chairman

Mr. Homi R. Khusrokhan,

Mr. M.S.Ramachandran

Mr. V.Sridar

Board

Governance,

Remuneration

&

Nomination

Committee

Mr. SridarIyengar, Chairman

Mr. K.V.Kamath

Mr. Homi Khusrokhan

 Corporate Social Responsibility Committee

Mr. M.S.Ramachandran, Chairman

Mr. Arvind Kumar

Dr. Tushaar Shah

Ms. Chanda D. Kochhar

Customer Service Committee

Mr. K.V.Kamath, Chairman

Mr. M.S.Ramachandran

Mr. V.Sridar

Ms. Chanda D. Kochhar

 Credit Committee

Mr. K.V.Kamath, Chairman

Mr. Homi R. Khusrokhan

Ms. Chanda D. Kochhar

Fraud Monitoring Committee

Mr. V.Sridar, Chairman

Mr. K.V.Kamath

Mr. Homi R. Khusrokhan

Mr. Arvind Kumar

Ms. Chanda D. Kochhar

Mr. Rajiv Sabharwal

 Risk Committee

Mr. K.V.Kamath, Chairman Mr. SridarIyengar Mr. Arvind Kumar Mr. V.Sridar Ms. Chanda D. Kochhar Share Transfer & Shareholders'/ Investors' Grievance Committee Mr. Homi R. Khusrokhan, Chairman Mr. V.Sridar Mr. N.S. Kannan Committee of Executive Directors

Ms. Chanda D. Kochhar, Chairperson Mr. N.S.Kannan Mr. K. Ramkumar Mr. Rajiv Sabharwal

6. GROUP OF ICICI

ICICI Group offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialised group companies, subsidiaries and affiliates in the areas of personal banking, investment banking, life and general insurance, venture capital and asset management. With a strong customer focus, the ICICI Group Companies have maintained and enhanced their leadership position in their respective sectors.

A) ICICI Bank is India's second-largest bank with total assets of Rs. 3,793.01 billion (US$ 75 billion) at March 31, 2009 and profit after tax Rs. 37.58 billion for the year ended March 31, 2009. The Bank has a network of 1,451 branches and about 4,721 ATMs in India and presence in 18 countries. AWARDS ICICI Bank has won Gold in the Readers Digest Trusted Brands 2010 Consumer award in the Finance category for A) Best Bank and B) Best Credit Card Issuing Bank. B) ICICI Prudential Life Insurance Company is a 74:26 joint venture with Prudential plc (UK). It is the largest private sector life insurance company offering a comprehensive suite of life, health and pensions products. It is also the pioneer in launching innovative health care products like Diabetes Care Active and health Saver. The company operates on a multi-channel platform and has a distribution strength of over 2,76,000 financial advisors operating from more than 2000 branches spread across 1800 locations across the country. In addition to the agency force, it also has tie-ups with various banks, corporate agents and brokers. In fiscal 2009, ICICI Prudential attained a market share of 10.9% based on retail weighted premium and garnered a total premium of Rs 153.56 billion registering a growth of 13% and held assets of Rs. 327.88 billion as on March 31, 2009. AWARDS ICICI Prudential Life Insurance awarded India's Most Customer Responsive Insurance Company. AGC Networks - Economic Times, Customer Responsiveness Awards, 2010.

C) ICICI Lombard General Insurance Company, a joint venture with the Canada based Fairfax Financial Holdings, is the largest private sector general insurance company. It has a comprehensive product portfolio catering to all corporate and retail insurance needs and is present in over 300 locations across the country. ICICI Lombard General Insurance has achieved a market share of 27.2% among private sector general insurance companies and an overall market share of 11.2% during fiscal 2009. The gross return premium grew by 2.2% from Rs. 33.45 billion in fiscal 2008 to 34.20 billion in fiscal 2009.

AWARDS ICICI Lombard awarded 'Most Preferred General Insurance Brand' at CNBC Awaaz Consumer Awards 2010.

D) ICICI Securities Ltd is the largest equity house in the country providing end-to-end solutions (including web-based services) through the largest non-banking distribution channel so as to fulfill all the diverse needs of retail and corporate customers. ICICI Securities (I-Sec) has a dominant position in its core segments of its operations - Corporate Finance including Equity Capital Markets Advisory Services, Institutional Equities, Retail and Financial Product Distribution.

E) ICICI Securities Primary Dealership Limited is the largest Primary Dealer in Government Securities. It is an acknowledged leader in the Indian fixed income and money markets, with a strong franchise across the spectrum of interest rate products and services - institutional sales and trading, resource mobilisation, portfolio management services and research. One of the first entities to be granted Primary Dealership license by RBI, I-Sec PD has made pioneering contributions since inception to debt market development in India. I-Sec PD is also credited with pioneering debt market research in India. I-Sec PD has been recognised as the 'Best Domestic Bond House in India' by Asia money every year from 2002 to 2007 and selected as 'Best Bond House' by Financeasia.com for the years - 2001, 2004 to 2007 and 2009."

F) ICICI Prudential Asset Management is the third largest mutual fund with average asset under management of Rs. 514.33 billion and a market share of 10.43% as on March 31, 2009. The Company manages a comprehensive range of mutual fund schemes and portfolio management services to meet the varying investment needs of its investors through162 branches and 185 CAMS official point of transaction acceptance spread across the country.

G) ICICI Venture is one of the largest and most successful private equity firms in India with funds under management in excess of USD 2 billion. ICICI Venture, over the years has built an enviable portfolio of companies across sectors including Life Sciences, Information Technology, Media, Manufacturing, Retail, Financial Services, and Real Estate thereby building sustainable value. It has several firsts to its credit in the Indian Private Equity industry. Amongst them are Indias first leveraged buyout (Infomedia), the first real estate investment (Cyber Gateway), the first mezzanine financing for a acquisition (Arch Pharmalabs), the first royalty-based structured deal in Pharma Research & Development (Dr Reddys Laboratories - JV) and the first fund level secondary transaction (Coller Capital).

7.CORPORATE SOCIAL RESPONSIBILITY

For over five decades, the ICICI Group has partnered India in its economic growth and development. Promoting inclusive growth has been a priority area for the Group from both a social and business perspective. We strive to make a difference to our customers, to the society and to the nations development directly through our products and services, as well as through our development initiatives and community outreach.

ICICI Foundation for Inclusive Growth (ICICI Foundation) was founded by the ICICI Group in early 2008 to carry forward and build upon its legacy of promoting inclusive growth. ICICI Foundation works with government authorities and specialised grassroots organisations to support developmental work in four identified focus areas. It is committed to investing in long-term efforts to support inclusive growth through effective interventions. Vision Our vision is a world free of poverty in which every individual has the freedom and power to create and sustain a just society in which to live.

Mission Our mission is to empower the poor to participate in and benefit from the Indian growth process through integrated action in the fields of primary health, elementary education, financial inclusion and sustainable livelihood. This will be achieved through active collaboration with the government and independent organisations.

Our History ICICI Banks Social Initiatives Group (SIG), a non-profit group set up within ICICI Bank in 2000, pioneered our work on health, education and access to finance. In January 2008, ICICI Group established ICICI Foundation for Inclusive Growth, which carries forward this legacy.

SOCIAL INITIATIVES GROUP (SIG):-

ICICI Bank's social sector initiatives aim to resolve some of the most fundamental developmental problems facing India today. Its involvement is primarily in terms of non-commercial support to fill knowledge and practice gaps in specific thematic areas Early Child Health, Elementary Education and Micro Financial Services.

SIG interactive platform that seeks to:

Bring together participants in the development process to widen and deepen the discourse informing development practice. Interactive features include discussion boards and facilities to post papers, articles or other resources. Publish research related to innovations and significant problems within the identified thematic areas. Enable online application for funding.

MISSION STATEMENT OF SIG:-

The mission statement of the SIG is "to identify and support initiatives designed to improve the capacities of the poorest of the poor to participate in the larger economy". The SIG believes that the three fundamental capacities any individual should possess to be able to participate in the larger economy are in the areas of health, education and access to basic financial services. Within these broad areas, infant health at birth, elementary education and micro financial services define the areas in which the SIGs work focuses.

At a very basic level, the programmes and projects supported by the SIG are required to cater to the poorest. They should enable them to become active and informed participants in socio-economic processes as opposed to passive observers. These initiatives must be output oriented, with a focus on producing measurable outcomes that meet a minimum quality requirement. The initiatives also need to be cost-effective. This is in recognition of the fact that resources are limited and their efficient use is imperative if the maximum number is to benefit. Cost-effectiveness also facilitates the adoption of the initiative in other contexts.

The initiative must be scalable. Scalability implies the ability to draw upon important elements of a programme and adapt them to suit the needs of a specific situation. It should be possible to do so at a national level. Even if the programme itself is not directly scaleable, it should be possible to take away significant lessons from it in order to enrich work in other settings.

All supported initiatives should have the potential for both near and long-term impact. Consequentially, it is important that the impact of these programmes, in the near and long term, be carefully understood and analyzed in a rigorous manner and not through anecdotes. It is critical to clearly understand how an initiative is performing in terms of its predetermined goals and in comparison to alternatives. There is little doubt that a complex of factors, very often beyond the control of the programme/ organization, will influence the outcome. Yet, serious and regular impact analysis can only make the programme richer and is essential. The SIG assigns greater value to programmes/ organizations that carefully examine the short-term and long-term implications of their actions.

In pursuit of its goals in the three focus areas, the SIG tends to support reasonably large-sized initiatives so that issues such as costeffectiveness, scalability and impact assessment can be dealt with more directly. These initiatives not only have the potential to provide key research inputs to other programmes, but also tend to have a large impact that benefits the communities they work with. The approach of the SIG may thus be characterized more broadly as action research, to distinguish it from pure academic research. However, in its research work and impact assessment, the SIG seeks to adhere to the highest standards of academic rigour. It often works in partnership with academic institutions such as Institute of Rural Management Anand, KEM, Massachusetts Institute of Technology, Tata Institute of Social Sciences, University of California, Berkeley and the University of Southampton.

It is crucial that the programmes supported by SIG be time-bound. This lends clarity to the aim of the programme and prevents its intent from getting diluted over time. The SIG works by identifying gaps in knowledge and practice in its focus areas and locating initiatives that address these gaps in a manner consistent with the SIGs mission. The identification of research needs is followed by an in-depth analysis of the short-term and long-term implications of various forms of action. Among other things, this requires taking a comprehensive overview of work already done in the country and outside. The SIG, thus, seeks to answer certain fundamental questions in its focus areas through the projects it supports and, thereby, contribute to findings that help the sector. It should be pointed out that the SIG does not function as a rollout agency. An important feature of the SIGs strategy is the belief in strengthening or supplementing existing systems, rather than investing in parallel structures. Another key element of its strategy is the building of longterm relationships with suitable partners. As part of this effort, the SIG works actively to improve the efficacy of these partners and ensure sustained impact. In pursuit of its goals, the SIG seeks to work actively with research agencies, Non-Governmental Organisations (NGOs), Corporates, Government departments, local stakeholders and international organisations. It should also be noted that the group believes modern technologies, particularly Information and Communication Technologies (ICT) can prove to be important facilitators if used appropriately.

FOCUS AREAS OF SIG:-

The SIG has three focus areas:

Early Child Health Elementary Education Micro Financial Services

A) Health: Early Child Health

This focus seems to have the potential for maximum long and shortterm impact and appears achievable in the most cost-effective and therefore scaleable manner. ICICI Bank aims to improve individual capacity by impacting two important indicators of chronic under nutrition in the first three years at the national level:

Proportion of babies born with a birth weight of less than 2.5 kg at or beyond 37 weeks of gestation (Intra-Uterine Growth retardation, IUGR)

Proportion of children under three years who are stunted.

B) Education: Elementary Education

Education (and not just literacy) up to the elementary level seems to be almost a necessary condition for any individual (rich or poor) to be able to participate in any manner in the larger economy Here the goal is to work towards the universalisation of elementary education all across India, rural and urban, with a substantial difference being made by 2010. The goal focuses on retention in school and learning achieved.

C) Money: Micro Financial Services These services would include basic banking (savings and cash management), finance (debt and equity), insurance (life and health) and derivatives. The goal here is to facilitate universal access to these four services by the year 2011.

In addition to its core areas of focus, the SIG, in a limited manner, supports some other initiatives:

a) Non-governmental Organization (NGO) Capacity Building This is supported through the GIVE (Giving Impetus to Voluntary Effort) Foundation. It seeks to provide a variety of services to NGOs listed including facilitating the receipt of donations online (Give Online), sale of NGO products (Shop Online), volunteering of time and skills (Volunteer Online) and news (News Online).

B) Modernization of the Indian Financial System

This involves encouraging appropriate research and institution building efforts on a national basis. It is a virtual non-profit research centre that acts as a platform to address and encourage debate, and develop a nonpartisan opinion on various issues of concern and interest in financial economics relating to emerging markets. ICICI Bank has supported the development of various financial institutions such as the National Stock Exchange and the Bombay Stock Exchange. It has also supported the Institute for Financial Management and Research, Chennai.

The changed economic climate in India, with a growing emphasis on the market, has hastened the need for an informed and participatory socioeconomic order. As one of the largest players in the economic landscape of the country, ICICI Bank believes that its involvement in the commercial sector must be backed by a simultaneous commitment in the social sector. This is particularly so if any of the larger goals of economic liberalisation in India, and of its players, is to be brought to fruition. ICICI Bank seeks to perform its role in the social sector through a dedicated not-for-profit group, the Social Initiatives Group (SIG).

8. RESEARCH METHODOLOGY

Primary Data:

The data consisted of

Information collected with the help of Questionnaire for analyzing Bank@home service. Sample size of which was 200 existing customers. Personal interview was done with the walk interview. Observation method was used for understanding various products and their features and understanding the 5 S Philosophy

Limitations:

Paucity of time Concentrating on the happenings on specific branch and not on the bank policies on a whole

Secondary Data:

Was collected from internet and intranet within the company for

Understanding the product and the features. Understanding the functioning of Bank@home. Obtaining the documents for Corporate Boxes. Information collected form guidance of superior managers to understand the RBD process

9.CREDIT RATING

During the year, ICICI became the first Indian company to be rated higher than the sovereign rating for India by Moodys Investor Service, when its senior and subordinated long term foreign currency debt was rated Ba1 i.e. one notch above the sovereign rating for India. The same rating has been assigned to ICICI Bank post-merger. ICICI Banks credit ratings as per various credit rating agencies (including ratings assigned to debt instruments issued by ICICI now transferred to ICICI Bank on merger) are given below:

AGENCY REATING

Moodys Investor Service (Moodys)

Foreign currency debt .....................................................Ba1 Foreign currency deposits ...............................................Ba3

Standard & Poors (S&P) .................................................... BB

Credit Analysis & Research Limited (CARE) ............... CARE ..AAA

Investment Information and Credit Rating Agency (ICRA) ..................... LAAA

10. RISK MANAGEMENT

Risk is an integral part of the banking business. The delivery of superior shareholder value depends on achieving an appropriate trade-off between risk and returns. ICICI Bank is exposed to specific risks that are particular to its businesses and the environment within which it operates, including credit risk, market risk and operational risk. Our risk management strategy is based on a clear understanding of various risks, disciplined risk assessment and measurement procedures and continuous monitoring. The policies and procedures established for this purpose are continuously benchmarked with international best practices. The Risk, Compliance & Audit Group is responsible for assessment, management and mitigation of risk in ICICI Bank. This group forms part of the Corporate Centre, is completely independent of all business operations and is accountable to the Audit Committee of the Board of Directors. The group is organized into six sub-groups: Credit Risk Rating & Industry Analysis, Credit Policies & Credit Audit, Risk Analytics, Internal Audit, Subsidiaries Audit and Retail Risk.

A) Credit Risk
Credit risk is the risk that a borrower is unable to meet its financial obligations to the lender, ICICI Bank. ICICI Bank measures, monitors and manages credit risk for each borrower and also at the portfolio level. ICICI Bank has a standardized credit approval process, which includes a well-established procedure of comprehensive credit appraisal and rating. The credit rating for every borrower is reviewed at least annually and for higher risk credits and large exposures typically on a quarterly basis. ICICI Bank also reviews the ratings of all borrowers in a particular industry, upon the occurrence of any significant event impacting the industry.

B) Market Risk Market risk is the exposure to loss resulting from changes in interest rates, foreign currency exchange rates, equity prices and commodity prices. ICICI Banks market risk arises principally from interest-rate risk. ICICI Banks exposure to market risk is a function of its asset and liability management activities, trading activities and its role as a financial intermediary in customer-related transactions. The objective of market risk management is to effectively manage exposure of earnings and equity to losses and to reduce the volatility inherent in financial instruments. Interest-rate risk is measured through the use of re-pricing gap analysis and duration analysis.

Market risk is managed within an overall asset-liability framework approved by the Asset- Liability Management Committee (ALCO) of the Board of Directors. Its role encompasses stipulating liquidity and interest-rate risk limits, monitoring market-risk levels by adherence to set limits, articulating the organizations interest rate view and determining business strategy, in the light of the current and expected business environment. ICICI Bank proactively manages market risk through the re-pricing profile of incremental assets and liabilities and also uses the rupee interest rate derivatives market in India, to the extent feasible, to actively manage asset and liability positions. ICICI Bank ensures adequate liquidity at all times through systematic funds planning and maintenance of liquid investments, as well as by focusing on more stable funding sources such as retail deposits. The Risk, Compliance & Audit Group formulates market risk management policy and monitors market risk on an ongoing basis. The asset-liability management group reporting to the Chief Financial Officer (CFO) monitors the assetliability position under the supervision of the ALCO.

C) Operational Risk

ICICI Bank is exposed to many types of operational risk. Operational risk can result from a variety of factors, including failure to obtain proper internal authorizations, improperly documented transactions, failure of operational and information security procedures, computer systems, software or equipment, fraud, inadequate training and employee errors. We attempt to mitigate operational risk by maintaining a comprehensive system of internal controls, establishing systems and procedures to monitor transactions, maintaining key back-up procedures and undertaking regular contingency planning. The Middle Office group monitors adherence to credit procedures.

The Internal Audit group undertakes a comprehensive audit of all business groups and other functions, in accordance with a risk-based audit plan. This plan allocates audit resources based on an assessment of the operational risks in the various businesses. The Audit Department conceptualizes and implements improved systems of internal controls, to minimize operational risk.

11. SWOT ANALYSIS OF ICICI BANK

Strengths: Very fast growing bank of Rajasthan as well as of India. Track record of high growth and profitability. Strong financial background. One of the biggest financial institutions before converting into bank. Long experience of banking that is why it is called 20 years old new bank. Latest technology used by the bank. Free Home Banking transaction facility. Very good database maintained by the bank, i.e., Banking Customer Information Database.

Weaknesses: Low brand image. High average quarterly balance to be maintained by the costumer. Only one branch and one ATM network in whole Rajasthan. Lack of coordination between different departments. Lack of costumer awareness regarding services and bank because of low advertising. Does not provide very important facilities like credit card facility, cash credit limit facility.

Opportunities:

Opportunities of entering into major cities of Rajasthan like Kota, Ajmer, and Bikaner etc. Scope of more ATM networks. Opportunities to increase its costumer base in liabilities section by marketing their products on local television channels, fm, and hoardings.

Threats:

Threats from nationalized banks. Threats from private bank like HSBC, UTI, and HDFC because these banks open both savings and current account at a very nominal amount with some what similar services.

12.ANALYSIS AND Interpretation

A) HOW OFTEN DO YOU VISIT THE BRANCH?

20%

0% Daily Weekly Forthnightly Monthly

25%

55%

Interpretation-

Almost 55% respondents visit the branch weekly followed by 25% respondents who visit the branch fortnightly while only 20% of the respondents visit the branch monthly. Large proportion of the respondents visit the branch weekly and fortnightly which is a high frequency.

B) HOW FAR IS YOUR HOME/OFFICE FROM THE BRANCH?

25%

15% 0-1KM 1-5 KM 5-10KM

15% 45%

> 10KM

Interpretation-

A large percentage of respondents live far from their bank branch, 45% are 1-5km away from their bank branch, 15% are further 5-10km away whereas 25% have their bank branches more than 10km away from their home/office and still the visits to the branch have a high frequency. Only 15 % of the respondents are as close as 0-1km from their bank branch.

C) WHAT ARE THE MAJOR ISSUES FOR WHICH YOU NEED TO VISIT THE BRANCH?

DD/PO/FUNDS TRANSFER Cheque book request Statements 15% Cheque deposit 14% 21% 0% 14% FD/RD opening and renewal Cash withdrawal Cash deposit A/C opening Internet request

0% 9% 18%

9%

Interpretation-

Since multiple answers were given the highest frequency of people visiting the branch is for Cash withdrawal, Cash deposit is next favorite in the answers. This clearly shows that the Cash On Tap service will be highly useful to the customers, other issues can be handled easily by the remote service delivery.

D) WOULD YOU LIKE TO CARRY OUT ALL THE ABOVE MENTIONED TRANSACTIONS FROM THE CONVENIENCE OF YOUR HOME?

0%

YES NO

100%

Interpretation-

All respondents were very happy with the idea that they could take care of their banking issues without even having to visit the branch specifically for cash withdrawal and cash deposit.

E) Sources from which the respondents get the knowledge about the innovative financial services.

Sources of Awareness about various innovative financial products

4% 26% 21% 15% Personal Visit Executive from Bank Advertisements Friends/Relatives 34% Others

Interpretation-

The above table

indicates the percentage distribution of awareness

avenues, the major are in favour of advertisements, which score 34% among different avenues such as personal visit, executives of the banks, advertisements and friend/relatives. While the least score is for personal visit and that of other sources.

F ) Growth rate of credit cards.

Number of credit cards

0.8

0.5
0.3

0.6

0.3

0.0 2007 (0.2) 2008 2009

Interpretation-

The above table indicates the growth rate of credit cards, which scores 0.3 million in the year 2008 and it has grown upto 0.6 million in 2009.The growth rate is 100%. This indicates that the distribution of credit cards is on large scale. The ICICI Bank is considered as largest issuer of credit cards.

13.CONCLUSION

The project of Financial Services of Banks was undertaken at ICICI Bank Ltd. Working under this project I learned various services in detail which banks generally follow.

It also helped in gaining knowledge about different concepts provided under different services.

The Financial Services of the Banks has become very vital in the smooth operation of the banking activities. The Project work has certainly enriched the knowledge about the effective management of the various services in Banking Sector.

Lastly as according to data collection we conclude that given findings and suggestions need to be considered which can prove to be effective to the Banks.

14SUGGESTIONS

ICICI Bank should chalk out some programs to create general awareness regarding its presence and various services of the bank. More attention is required in distant located firms and caters the needs of those commercial areas.

Personal Marketing / Aggressive Marketing: Today is the era of competition. In order to increase the banking network (in terms of clients and business volume) an aggressive approach is required. The bank should recruit more number of marketing personnel, so that they can cover the whole of the city. Personal marketing can be one of the methods or modes of taking people into confidence.

Promotional campaign: - In the era of such stringent competitiveness one has to take care of promotional activities. It can be done in following ways:

Advertising: - Initially when we took our work we found that general awareness amongst people regarding ICICI Bank was good. The bank should instead of being centrally advertised, try to advertise locally. This can be done in following ways: -

That involved an amalgamation with Blue Green Construction and Investments, a company promoted by Subhikshas founder-head, R Subramanian, and a rearrangement of lending schedules.

ICICI also told the high court today that the retail chain need not depend on the outcome of corporate debt restructuring (CDR) for its revival. The deadline for the CDR was July 31, which was missed.

The counsel, along with others, sought for an investigation on Subhiksha. The others include ICICI Venture, HCL Info systems, Azim Premj i-owned Zash Investment and Kotak Mahindra Bank.

The investigation request came after Subhiksha told the court that investors and promoters are ready to pump in Rs 250 crore. Post merger (with Blue Green), we can pump in Rs 150 crore in eight weeks from the investors and another Rs 100 crore in 6-9 months, counsel representing Subhiksha told the court. The attention is required on areas of growth, profitability, services level and building talent. To increase the profit of bank, bank should decrease their operating expenses and increase their income. To increase its liquidity bank should keep some more cash in its hand instead of giving more and more advances. Prevention against frauds of Credit Cards To take necessary action against defaulters Providing with proper information relating to various services Guidance for investment in various securities in order to protect the interest
of investors.

Approaching the customers for investment in innovative financial services. Special schemes to be provided on some types of services

15.ANNEXURE

1) Which type of financial services are offered by Banks? 2) Which types of Credit Cards are provided to the customers? 3) What kind of actions are taken by the banks against defaulters? 4) Is the bank following RBI guidelines from time to time? 5) What are the steps taken by the bank to settle the claims? 6) Which type of innovative financial services are provided by the bank after LPG? 7) Are the new customers attracted by the physical environment of the bank? 8) What are the future plans of the bank?