EXECUTIVE SUMMARY

The Banking sector over the years has undergone a tremendous transformation over the past few decades. From a government regulated industry it has evolved to a highly deregulated one. In this report we have a studied the various developments of the banking sector starting from the pre independence years to the present scenario. Two important developments which have shaped the modern day banking system are Nationalization of 1969 and the Liberalization of 1992. The market segment and demographics are also studied in the report. In addition the various factors like political, economical, social and technological where studied and how the impact the banking sector as a whole. The modern day banks have today diversified from their traditional business and now operate in diverse fields. With banking industry becoming highly competitive the need for diversification has risen and banks are actively pursuing various strategies to cope better with competition. Besides diversification the last two decades has seen many mergers and acquisitions, in this report major mergers and acquisitions have been discussed. The Indian banking industry is now open to foreign players and this changed the field of play. In addition Indian banks have started venturing abroad. Nothing has revolutionized the way how banking is done is technology. The banks have completely digitized the operations. Private banking sector are playing a garter role in countries economic scenario. In the report we are going to discuss about ICICI Bank.

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CHAPTER 1 INTRODUCTION

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1. INTRODUCTION According to Oxford dictionary

a financial establishment that uses

money deposited by customers for investment, pays it out when required, makes loans at interest, and exchanges currency , but today they have gone beyond this definition. The origin of modern banking system can be dated back to medieval period. The first deposit bank, Banco di San Giorgio (Bank of St. George), was established in 1407 at Genoa, Italy. Today banks have become instruments of financial development and act as the back bone of any economy. Banks activities can be divided into:  Retail banking which deal directly with individuals and small businesses.  Business banking which provide services to mid-market business.  Corporate banking, directed at large business entities.  Private banking, providing wealth management services to high net worth individuals and families.

1.1 INDIAN SCENARIO The history of banking in India dates back to the 18th century, one of the first banks to be established in India was the General Bank of India which was established in the year 1786 followed by Bank of Hindustan. SBI is the oldest functioning bank, it was started with the name as Bank of Bengal and then it was mergered with Bank of Bombay and Bank of Madras to form the Imperial Bank of India and after independence its name was changed to State Bank of India. The period between 1906 and 1911, saw the establishment of banks influenced by the Swadeshi movement. The Swadeshi movement gave the inspiration to local businessmen and political leaders to establish banks of and for the Indian community. A number of banks established then and which have survived to the present such as Bank of India, Corporation Bank, Indian Bank, Bank of Baroda, Canara Bank and Central Bank of India. India attained its independence for the Britishers in 1947 and the free India decided to adopt a mixed economy structure. The Government of India adopted measures to play an active role in the economic structure of the nation; which resulted in greater involvement of state in banking and financial sector. The RBI which was established in 1935 was nationalized in 1949. In 1949, the Banking Regulation Act was introduced which empowered the RBI "to regulate, control, and inspect the banks in India."

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The major event in the Indian banking sector was the Nationalization of 14 commercial banks in 1969. This move was regarded as political master stroke by the Prime Minister Mrs. Indira Gandhi. In spite the restrictions, control and regulations of RBI, banks in India except the State Bank of India, continued to be owned and operated by private individuals. Nationalization was done with the motive to provide the government and RBI with more control on the banking sector and usage of banks as tools of economic progress. The 2nd round of nationalization was again done in 1980 when 8 more banks were nationalized. The mile stone in the Indian banking sector was the financial reforms introduced by the then Prime Minister Dr. Narishma Rao government in 1990. In 1991 The Narsimham Committee was set up under the leadership of then RBI governor Mr. M. Narasimham in order to study the problems of the Indian banking system and to recommend areas of improvement in the efficiency and productivity of the financial institution. Financial Sector Reforms have greatly changed the face of Indian Banking. Some of the recommendations of the Narsimham Committee where as follows:  Decreasing the SLR1 requirement to 25% and CRR2 to 5%.  Banks were now free to set their deposit and lending rates.  Permitting the entry of new private players.

NOTE: 1. SLR: stands for Statutory Liquidity Ratio - It is the amount of liquid cash every bank would have to maintain based on the average transaction amounts and volumes handled by the bank on a day to day basis. 2. CRR: stands for Cash Reserve ratio: It is the amount of cash which every bank must remain and cant be used in transaction There have been a lot of structural changes in the Indian banking sector after the implementation of Narasimhan Committee. The financial reforms have increased competition

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by entry of new private banks and more liberal entry of foreign banks. The Indian banking sector has been under the domination of the government, the total asset of the public sector bank was little over 90% in 1991 & it reduced to 75% in 2003-2004. The structure of the Indian banking sector is shown below:
Fig 1.1: Banking Structure in India

Under the central bank of India, Reserve Bank of India describes the Scheduled banks(SCB): Scheduled Banks are those banks which satisfy the section 42(6)(9) of the RBI act 1935. The Scheduled banks can further be classified into Commercial Banks, Co-operatives and Regional Rural Banks. In this report we will mainly be focusing on Commercial Banks. The commercial banks can be classified as follows:  Public Sector Banks: This refers to banks whose shares are listed in the stock exchanges NSE and BSE and also in which the government of India holds majority of the stake. E.g.: State Bank of India(SBI), Canara Bank, Syndicate Bank etc.

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 Private Sector Banks: This refers to those banks in which majority of stake is held by private players and not by the govt. E.g.: ICICI, Axis Bank, HDFC etc.  Foreign Banks: This refers to those banks which are subsidiaries of Multi National Banks

The banking industry has evolved to a deregulated market economy from a regulated environment. The market developments during the liberalization and globalization have resulted in changes in the role of banks. The transformation pace has been more significant in recent times with technology acting as a catalyst. Greater challenges lie ahead even though the banking system has done fairly well in adjusting to the new market dynamics. Banks will also have to adjust with challenges posed by technological innovations in banking. 20 Indian banks were included in the Brand Finance Global Banking 500 in the annual international ranking conducted by UK-based Brand Finance Plc3. In fact, the State Bank of India (SBI) has become the first Indian bank to be ranked among the Top 50 banks in the world, securing the 36th rank, as per the study of Brand Finance. The SBIs brand value increased from US$ 1.5 billion in 2009 to US$ 4.6 billion in 2010. ICICI Bank was also in the Top 100 list with a brand value of US$ 2.2 billion. The total brand value of the 20 Indian banks featured in the list stood at US$ 13 billion .The current market structure in the Indian banking industry falls under the monopolistic competition type. This implies that there are numerous firms in the industry, each selling similar or the same products, but presented to the consumers as entirely different products. Post liberalization, the numbers of banks in the Indian context have increased rapidly. Governmental barriers to the same have been removed, and the market itself has imposed minor
barriers.

The Indian banking industry has remained largely unaffected and has been an island of calm amidst the turmoil that the global financial sector has seen in the recent past. The Reserve Bank of India, Indias central bank, has introduced and implemented a variety of prudent monetary initiatives that have helped domestic banking & financial industry cope with the uncertainty that has plagued the banking sector worldwide.

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1.2 GLOBAL SCENARIO

The world is facing the worst economic crisis since the Great Depression in 1930s. Effects of the crisis have spread far and wide due to excessive debt, deflationary conditions, financial closures and unjustified money hoarding. The financial crisis turned unwieldy with the collapse of the US subprime mortgage segment in September 2008 and its turbulence has severely weakened global financial institutions and markets. The upheaval in the credit market and its consequent fall out has left large global banks in the midst of financial duress. Economic conditions worsened as growth decelerated and inflation rates toughened in advanced economies. The US economy, in particular, has been severely hit by the subprime mortgage fiasco. The global credit crisis has had far reaching implications for the banking industry, which has been growing at a rapid pace till 2007. The industry witnessed record profits and higher profitability between 2002 and 2007 because of the greatest economic boom but losses from the US subprime mortgage loans escalated into widespread financial stress globally for the industry. Earlier on the US banks had a dominant role in the global banking industry but today, credit crisis looms large over them. Further, as banks have been trying to improve their loan-to-deposit ratio and BASEL II4 capital adequacy ratios, lending has been diminishing. The world of commercial banking is undergoing a deep transformation as a result of marketable instruments competing with loans and demand deposits. Because of this strong competition, commercial banks are struggling to make acceptable margins from their traditional business entering into investment banking. As margins are squeezed, commercial banks in the United States and Europe have been forced to cut costs and branches while diversifying into pensions, insurance, asset management, and investment banking. In the United States, many banks call themselves financial service companies even in their reported financial statements. Diversification, however, has not always proved to be an effective strategy, and many banks

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TYPE FOUNDED HEADQUARTERS

:
:

PRIVATE BSE 1955 (as industrial credit and investment corporation of India ) ICICI BANK LTD., ICICI BANK TOWERS, BANDRA KURLA, MUMBAI, INDIA

DIRECTORS

K.V.KAMANTH, CHAIRMAIN CHANDRA KOCHHAR, MANAGING DIRECTOR & CEO SANDEEP BAKHSHI, DEPUTY MANAGING DIRECTOR N.S.KANNAN, EXECUTIVE DIRECTOR & CFO K.RAM KUMAR, EXECUTIVE DIRECTOR SONJOY CHATTERJEE. EXECUTIVE DIRECTOR

INDUSTRY

BANKING INSURANCE CAPITAL MARKET & ALLIED INDUSTRIES

PRODUCTS REVENUE TOTAL ASSETS WEBSITE

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LOANS, CREDICTS CARDS, SAVING, INVESTMENT

: : :

OVERALL IN TERMS

USD 5.79 BILLION

RS.3793.01 BILLION AT MARCH 31, 2009. ICICI BANK.COM

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ICICI:

ICICI BANK (INDUSTRIAL CREDICT AND INVESTMENT CORPORATION OF INDIA).IT IS INDIA SI LARGEST PRIVATE SECTOR BANK BY MARKET CAPITALISATION.IT IS ALSO SECOND LARGEST OVERALL IN TERMS OF ASSETS.IT OFFERS A WIDE RANGE OF PRODUCTS BANKING PRODUCTS AND FINANCIAL SERVICES TO CORPORATE AND RETAIL CUSTOMERS THOURGH A VARITY OF DELIVARY CHANNELS AND INVESTMENT BANKING,LIFE AND NON LIFE INSURANCE ,VENTURE AND ASSET MANAGEMENT.THE BANK ALSO HAS A NETWORK OF 1,449 BRANCHS AND ABOUT 4,721 ATMS IN INDIA AND PRESENCE IN 18 COUNTRIES AS WELL AS SOME 24 MILLION CUSTOMERS.IT IS ALSO LARGEST ISSUER OF CREDITS CARDS IN INDIA.ICICI BANK IS EXPANDING IN OVERSEAS MARKETS AND HAS THE LARGEST INTERNATIONAL BALANCE SHEET AMONG THE INDIAN BANKS.NOW IT HAS BECOME WHOLLYOWNED SUBSIDIARIES,BRANCHES AND REPRESENTATIVES OFFICE IN 18 COUNTRIES,INCLUDING AN

OFFSHORE UNIT IN MUMBAI. THIS INCLUDES WHOLLY OWNED SUBSIDIARIES IN CANADA , RUSSIA, AND THE UK OFFSHORE BANKING UNITS IN BAHRAIN AND SINGAPORE,AN ADVISORY BRANCH IN DUBAI,BRANCHES IN BELGIUM,HONG KONG AND SRI LANKA AND REPRESENTIVE OFFICE IN BANGLADESH,CHINA,MALAYSIA,INDONESIA

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n customers suitable for the growth of banking industry. 2. To study the social, economic, political and technological factors and impacted the banking industry. 3. How mergers and acquisitions affected the banking scenario. Also study the diversification strategies of various banks 4. To study the opportunities and challenges faced by the banking sector.

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CHAPTER 2 LITERATURE REVIEW

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2. LITERATURE REVIEW
There have been many researches done in the banking sector especially after the liberalization. In a research conducted by Vittaldas Leeladhar (2005) have studied these reforms and how the have improved the stability and efficiency the industry as a whole. Various parameters like NonPerforming Assets (NPAs) and Return on Asset (RoA) where used for the study to compare the trends over the years. In another study conducted by V.K.Shobhana (2010) a non parametric model to measure bank efficiency was developed. In this study the operational efficiency was not only measure from conventional factors like business per employee and business per branch but also other factor like network of banks, number of staff, wage bill, non wage operating expenses etc. In this study Oriental Bank of Commerce was ranked 1st in terms of operational efficiency. In addition using statistical tools like ANOVA6, it was proved that operational efficiency of a bank is independent of size of assets, network of branches of the banks and staff strength of the bank. Reverse mortgage is one of the new financial services in India, N.Sravanthi (2010) carried out research on this financial service, this included the SWOT7 analysis and details regarding the service offered by State Bank of India were analyzed. Competition in Indian banking sector has become intensive post liberalization with government allowing private and foreign players in the industry. In a research paper published by A Prasad & Saibal Ghosh (2005) the competition in the Indian banking industry and the impact of reforms was analyzed. It was concluded that the structure of banking is currently shaped by the three Cs: competition, convergence, and consolidation. There have been a lot of changes in the structure of the Indian banking sector after the implementation of Narshiman Committee. The financial reforms have brought greater competition by entry of new private banks and more liberal entry of foreign banks. The Indian banking sector has been dominated by the government, in 1991 Note:
6 . ANOVA: is a statistical tool and stands for Analysis of Variance. 7. SWOT: a technique used to analyze strength, weakness, opportunities and threats of a product/service/industry etc.

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total asset of the public sector bank was little over 90% & it reduced to 75% in 2003-2004. Before the financial reform of 1992, the Indian banking sector catered the needs of planned development and government had a dominant role in its functioning. Various rules prohibited the banks to take any independent decision the entry of private banks reduced asset concentration, which may have strengthened competition. To determine the degree and nature of competition various test by different people were analyzed such as Panzer & Rosse8 (1987) Test and others and findings of the test suggest that Indian banking industry is not significantly different from other countries as nearly 75% of the asset is with the state owned banks. The nature of competition has been a sort of monopolistic competitive type. In a similar study by Nitish Datta (2007) the characteristics of competition was studied in the post liberalization era. The following characteristics where found in the study.  Large number of firms: There are more than 77 schedule commercial banks in India; the customers have a lot to choose from.  Ability of the buyers to set prices as they wish: RBI has removed the restriction of setting up of interest rates and now individual banks can set their own rates.  Heavy reliance on non price actions and measures to differentiate one's product from others. Basel norms have been adopted worldwide by banks for better regulation and management. Many studies have been conducted scrutinizing this norms, one of them is by Balin (2008). This paper looks to fill that gap by detailing the origin, regulation, implementation, criticism, and results of both Basel I and Basel II. Drafted in 1988 and 2004, Basel I and II have ushered in a new era of international banking cooperation. Through quantitative and technical benchmarks, both accords have helped harmonize banking supervision, regulation, and capital adequacy standards across the eleven countries of the Basel Group and many other emerging market economies. On the other hand, the very strength of both accordstheir quantitative and technical focuslimits the understanding of these agreements within policy circles, causing them to be misinterpreted and misused in many of the worlds political economies. In the research it was concluded the first Basel Accord, Basel I, was a groundbreaking accord in its time, and did much Note: 8 .The Rosse-Panzar revenue test: for competitive conditions in banking is based on empirical
observation of the impact on bank-level revenues of variations in factor input prices.

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to promote regulatory harmony and the growth of international banking across the borders of the G-109 and the world alike. On the other hand, its limited scope and rather general language gives banks 16 excessive leeway in their interpretation of its rules, and, in the end, allows financial institutions to take improper risks and hold unduly low capital reserves. Basel II, on the other hand, seeks to extend the breath and precision of Basel I, bringing in factors such as market and operational risk, market-based discipline and surveillance, and regulatory mandates. Corporate governance has now become an integral part of any industry and banking is no exception to this but still more need to be done. Academically economics intensively focus upon corporate governance, virtually every major industrialised economy and major international organisation has made efforts in recent years to refine their views on how large industrial corporations should be organised and governed. There has been little research done on corporate governance which is done majorly on developing economies. In a research carried out by Das & Ghosh (2004) it was observed is that very little attention has been paid to corporate governance of banks. This is particularly strange which in lights the fact that a significant amount of attention has been paid to the role that banks themselves play in the governance of other sorts of firms. The corporate governance of banks play an important role in developing economies because banks are extremely important engines to support economic growth in which banks holds the dominant position in financial system of these economies. In this kind of economies financial market are usually on a lower side so bank is a major source of factor for majority of firms to get the fund from. Banks in developing economies are usually the main depository system for the economies savings. Many developing economies have recently liberalised their banking system through privatisation/disinvestments and reducing the role of economic regulation. Managers in these economies have the great amount of freedom to run their bank as they want with respect to the regularities. The role and need of good corporate governance in India have been reiterated in several forums. In fact, the major challenge in progressing to good corporate governance which any bank has to confront is to build essential knowledge on relevant Note :
9 . The Group of Ten or G-10 refers to the group of countries that have agreed to participate in the General Arrangements to Borrow (GAB). The countries included in G-10 are Belgium, Canada, France, Germany,

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laws, duties and responsibilities, financial analysis, strategy, business ethics and effective decision making. Corporate governance should be encompassed to all the players in the business instead of restricting to only boards and executive management. PSBs10 happen to dominate the banking industry but still it is very important for them also because they are unlikely to exit from the banking industry though they get transformed. PSBs has a great amount of ownership dilution which creates a risk for the owner i.e. government in order to restrict or avoid those corporate governance is to be followed so that it efficiently governed and managed. Some recent studies have made an attempt to explore the issue of corporate governance in banking organisation. As emerging markets like India continue to grow and become more integrated with the global economy more research will be needed to examine if their corporate governance system also mature. From past few years Indian banks have tapped local and offshore stock markets with impressive amount equity increases has strengthen its balance sheets which showing remarkable growth in assets which allows them to reshape there industry structure. In a research article by Fineman (2006) it was observed that Indian banks have exceeded its raising of equity levels as compare to Chinese banks. Indias market-friendly approach is creating them more efficient capital and building a network of large financially sound banks. No other Asian banks came close to Indian banks in terms of capital holdings. Necessity and opportunity are contributing equally to Indian banks as for the first time they have started allocating separate capital for market and operational risk. Every bank needs capital to support growth and also their loan books is also continuously growing rapidly. Well capitalized banks have tapped the stock market at the time when share prices are all time high, apparently just to stockpile funds for times when market proves less generous. This will certainly raise the requirements of continually raising capital in order to invest in the stock market. Availability of funds can increase the growth of any business organisation just like banks in their case it has witnessed the growth and restructure the Indian banking industry. A more commercial approach towards lending has enabled private banks to increase assets much faster than state banks. Note:
10. PSB: Public sector bank

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Fig 2.1: Indian bank equity issues, 2005

Source: Reserve Bank of India, Bloomberg, FRBSF calculations

Difference in holdings of assets and rising of equity has given a sizeable capitalization advantage to private banks. Private Banks are growing at a very rapid pace by having bigger capital cushions. Foreign investors have given an added value advantage to the private sector banks. India and china both the countries approach different strategies to run their banking sector. In china government takes a greater role in setting economic priorities, the state allows only reputated firms to sell new shares. Whereas in India banks have been independent to come up with their own issuance plan as long as they respect government ownership mandates. China who is the world s foreign direct investment (FDI) champion has sold numerous amounts of large bank stakes to foreign strategic investors. Whereas India does not support FDI as there are lot of legal constraints which has seen few foreign purchases of strategic bank stakes. China s strategy is showing the dominance of banks controlled by the central government. India s more freely approach is helping private lenders gain market share. Indian banks are subjecting themselves to greater market scrutiny, and banks issuing in the demanding U.S. market are meeting especially high accounting disclosures and corporate governance standards. Although capital increases might encourage excessive lending at some banks in the long run market discipline should help create a stronger Indian financial system.

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Technology has taken the banking sector by a storm. Technology has enabled bank provide services which where once unheard. Internet banking more popularly E-banking is one such service. In a research article by (Anand & Saklani, 2010) a study was carried out about customer s perception regarding service quality of Internet banking with Delhi begin the area where the research data was collected from. Sought quality is the level of quality customers explicitly or implicitly demand and expect from service providers whereas perceived quality means the overall impression a customer has and experiences about the level of quality after service realization. The difference between sought and perceived quality gives a measure of customer satisfaction. Seven parameters where used to assess the service quality of internet banking; reliability, accessibility, user friendliness, privacy/security, efficiency, responsiveness and fulfilment. In the research it was concluded that customers are satisfied with reliability of the service but not much satisfied with user friendliness. In addition it was observed that privacy and fulfilment are not contributing towards customer satisfaction, also males and females of business class differ in their opinion from other classes about internet banking.

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 specialised subsidiaries in the areas of investment banking, life and non-life insurance, venture capital and asset management. The Bank currently has subsidiaries in the United Kingdom, Russia and Canada, branches in United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International Finance Centre and representative offices in United Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia. Our UK subsidiary has established branches in Belgium and Germany.

ICICI Bank's equity shares are listed in India on 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).

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

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

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CHAPTER 3

COMPANY PROFILE

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Corporate Profile Of ICICI Bank ltd. ICICI Bank is India's second-largest bank with total assets of Rs. 3,634.00 billion (US$ 81 billion) at March 31, 2010 and profit after tax Rs. 40.25 billion (US$ 896 million) for the year ended March 31, 2010. The Bank has a network of 2,528 branches and about 6,000 ATMs in India, and has a presence in 19 countries, including India.

FINANCIAL SECTOR OVERVIEW The process of financial sector reforms that began a decade ago received further momentum in fiscal 2003. The reforms were aimed at improving the asset resolution and recovery environment, strengthening The process of financial sector reforms that began a decade ago received further momentum in the regulatory mechanism and increasing operational efficiency. The enactment of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act significantly strengthened the ability of lenders to enforce their security for recovery of dues from borrowers. The Act also created an enabling legal framework for asset reconstruction companies and for securitisation in general. ICICI Bank and other banks and institutions have taken the initiative to incorporate Asset Reconstruction Company (India) Limited (ARCIL) in order to give impetus to the resolution of distresse assets in the Indian financial system. As a step towards strengthening the supervisory mechanism, RBI is undertaking risk-based supervision of banks on a pilot basis. RBI is also examining the impact of the new Base capital accord on the Indian banking system. The Union Budget has raised the Foreign Direct Investment (FDI) limit in private sector banks to 74.0%. This would facilitate the setting up of subsidiaries by foreign banks as well as foreign investment in private sector banks. In the securities market, the emphasis during the year was on strengthening the regulatory Frame work and undertaking structural reforms that seek to foster liquidity and market efficiency. Furthermore, with a view to investigate frauds in the stock market it was decided to set up a Securities Fraud Office (SFO) with a multidisciplinary team of experts, in the Department of
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Company Affairs. The year also saw the grant of approval to an ICICI Bank-led consortium for the setting up of a multi-commodity exchange for trading in various commodities.

ORGANIZATION STRUCTURE
ICICI Banks organizational structure is designed to support its business goals, and is flexible while at the same time seeking to ensure effective control and supervision and consistency in standards across business groups. The organization structure is divided into five principal groups Retail Banking, Wholesale Banking, Project Finance & Special Assets Management, International Business and Corporate Centre. The Retail Banking Group comprises ICICI Banks retail assets business including various retail credit products, retail liabilities (including our own deposit accounts and services as well as distribution of third party liability products), and credit products and banking services for the small enterprises segment. The Wholesale Banking Group comprises ICICI Banks corporate banking business including credit products and banking services, with dedicated groups for corporate clients, Government sector clients, financial institutions and rural and micro-banking and agri-business. Structured finance, credit portfolio management and proprietary trading also form part of this group. The Project Finance Group comprises our project finance operations for infrastructure, oil & gas and manufacturing sectors. The Special Assets Management Group is responsible for large non-performing and restructured loans. The International Business Group is responsible for ICICI Banks international operations, including its entry into various geographies as well as products and services for non-resident Indians (NRIs). The Corporate Centre comprises all shared services and corporate functions, including finance and balance sheet management, secretarial, investor relations, risk management, legal, human resources and corporate branding and communications.

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BUSINESS REVIEW
During fiscal 2003, ICICI Bank successfully continued the process of diversifying its asset base and building a de-risked portfolio. Our ability to develop customized solutions, our speed of execution and our successful leveraging of technology have helped us develop innovative financial solutions for our customers in diverse areas such as the retail segment, agri-business and the corporate sector.

Retail Banking
Retail banking is a key element of our growth strategy. With upward migration of household income levels, increasing affordability of retail finance and acceptance of use of credit to finance purchases, retail credit has emerged as a rapidly growing opportunity for banks that have the necessary skills and infrastructure to succeed in this business. ICICI Bank has capitalized on the growing retail opportunity in India and has emerged as a market leader in retail credit. The key dimensions of our retail strategy are innovative products, parity pricing, customer convenience, strong processes and customer focus. Cross-selling of the entire range of credit and investment products and banking services to our customers is a critical aspect of our retail strategy. ICICI Bank offers a wide range of retail credit products. We have expanded the market significantly over the last few years by taking organized retail credit to a large number of highpotential markets in India, by penetrating deeper into existing markets and by offering customized solutions to meet the varying credit needs of the Indian consumer. ICICI Bank is one of the leading providers of mortgage loans, two-wheeler loans, commercial vehicle loans and personal unsecured loans, and continues to maintain leadership in automobile finance. ICICI Banks total retail disbursements in fiscal 2003 were approximately Rs. 200 billion. Retail credit constituted 18% of ICICI Banks balance sheet at March 31, 2003, compared to only 6% at March 31, 2002. Cross-selling has emerged as one of the significant drivers of retail credit growth. In fiscal 2003, cross-selling accounted for about 20% of mortgage loans and auto loans and about 25% of credit cards issued. In May 2003, ICICI Bank acquired the entire paid-up capital of Transamerica Apple Distribution Finance Private Limited (TADFL), which has now
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been renamed as ICICI Distribution Finance Private Limited (IDFL). IDFL is primarily engaged in providing distribution financing in the two wheeler segment. The is acquisition expected to supplement the Banks retail franchise, especially in the two-wheeler segment. During fiscal 2003, we continued our focus on retail deposits. This has reduced our funding cost and has enabled us to create a stable funding base, with over 4.7 million deposit customers. Following a life stage segmentation strategy, ICICI Bank offers differentiatedliability products to various categories of customersnnovative financial solutions for our customers in diverse areas such depending on their age group (Young Star Accounts for children below the age of 18 years, Student Banking Services for students, Salary Accounts for salaried employees, Roaming Current Accounts for businessmen, Private Banking for high networth individuals and Senior Citizens Accounts for individuals above the age of 60 years). ICICI Bank has further microsegmented various categories of customers in order to offer products catering to specific needs of each customer segment, like Defence Banking Services for defence personnel. This strategy has contributed significantly to the rapid growth in the retail liability base. ICICI Bank is also the largest incremental issuer of cards (including both debit and credit cards) in India. At March 31, 2003, ICICI Bank had issued over 3.4 million debit cards and 1.0 million credit cards. Our multi-channel distribution strategy provides our customers 24x7 access to banking services. This distribution strategy not only offers enhanced convenience and mobility to the customer but also supports our customer acquisition and channel migration efforts. During the year, we have further expanded our electronic channels and migrated large volumes of customer transactions to these channels. Now, about 70% of customer induced transactions take place through electronic channels. During fiscal 2003, the Bank significantly strengthened its ATM network, taking the total number of ICICI Bank ATMs to 1,675. ICICI Bank has also pioneered the concept of mobile ATMs to reach out to remote/rural areas. Other facilities offered through our multilingual screen ATMs include bill payments and prepaid mobile card recharge facility. ICICI Bank has about 3.4 million customers with Internet banking access, who can undertake all their banking transactions (other than physical cash transactions) on the Internet). ICICI Banks Internet banking customers can also pay their bills for more than 45 billers and shop on 85 online shopping portals. ICICI Bank considers phone banking to be a key channel of service delivery
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and cross-sell. ICICI Banks 1,750-seat call centre, the largest domestic call centre in India, can now be accessed by customers in over 355 cities across the country. The call centre handles more than 2.5 million customer contacts per month. The call centre services all retail customers across the ICICI group. The call centre uses state-of-the-art voice-over-Internet-protocol technology and cutting-edge desktop applications to provide a single view of the customers relationship with us. ICICI Banks mobile banking services provide the latest information on account balances, previous transactions, credit card outstanding and payment status and allow customers to request a cheque book or account statement. ICICI Bank has now extended its mobile banking services to all cellular service providers across the country and NRI customers in the United States, United Kingdom, Middle-East and Singapore. With the foundation of a strong multi-channel distribution network, we have successfully developed a robust model for distribution of third party products like mutual funds.

Reserve Bank of India (RBI) relief bonds, and insurance products, with market leadership in these areas. This model also allows us to meet all customer needs by offering the customer the complete basket of financial products, while leveraging our distribution capability to earn fee income from third parties. ICICIdirect (www.icicidirect.com) is the market leader in Internet based share trading, with complete end-to-end integration for seamless electronic trading on stock exchanges. ICICIdirect has a rating of TxA1 from CRISIL, indicating highest ability to service broking transactions. During the year, ICICIdirect launched online trading in the derivatives segment of the NSE.

Corporate Banking
ICICI Bank seeks to provide innovative financial solutions to its corporate clients, tailored to meet their requirements, while diversifying its revenue streams and generating adequate return on risk capital through risk-based pricing models and proactive portfolio management. Our focus in fiscal 2003 was on technologydriven enhancement of delivery capabilities to offer improved service levels to
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clients. We set up centralized processing facilities for backoffice operations where technology is leveraged to benefit from economies of scale arising out of large transaction volumes. During the year we continued to expand the scope of our web-based services. ICICI Bank provides corporate Internet banking services through ICICIebusiness.com, a single point web-based interface for all our corporate products. The portal enables clients to conduct their banking business with ICICI Bank through the Internet in a secure environment. ICICI Bank offers online foreign exchange and debt securities trading services. A dedicated Product & Technology Group develops and manages back-office processing and delivery systems. Dedicated relationship groups for corporate clients and the Government sector focused on expanding the range and depth of our relationships in these sectors. In the corporate segment, we focused on leveraging our relationships to expand the range of products and services to channel finance, transaction banking and non-fund based products. ICICI Bank has strong relationships with several large public sector companies and state governments and we are leveraging these relationships to expand the range of transaction banking services. ICICI Bank has already been empanelled for collection of sales tax in eight states. We continued to focus on corporate lending transactions including working capital finance to highly rated corporates, structured transactions and channel financing. We also focused on leveraging our skills in originating and structuring transactions as well as on our ability to take large exposures to adopt an originate-and-sell-down strategy. This not only increased the risk-adjusted return on the capital employed but also enabled us to offer a comprehensive solution to our corporate clients. ICICI Banks dedicated Structured Finance, Credit & Markets Group, with expertise in financial structuring and related legal, accounting and tax issues, actively supports the business groups in designing financial products and solutions. This Group is also responsible for managing the asset portfolio by structuring portfolio buyouts
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and sell-downs with a view to increase the risk-adjusted return on the capital. During fiscal 2003, ICICI Bank focused on the agri-financing segment and developed several innovative structures for agri-business, including dairy farming, farmer financing and warehouse-receipt-based financing. We achieved robust growth in this segment and are working with state governments and agri-based corporates to evolve viable and sustainable systems for financing agriculture. We have also integrated our rural banking, micro-finance and agri-financing activity to offer integrated banking services in rural areas.

Treasury
The principal responsibilities of the Treasury included management of liquidity and exposure to market risks, mobilization of resources from domestic institutions and banks and international multilateral and bilateral institutions and banks, and proprietary trading. Further, the Treasury leveraged its strong relationships with financial sector players to provide a wide range of banking services in addition to its liability products. In fiscal 2003, the balance sheet management function within Treasury managed interest-rate sensitivity by actively using rupee-interest-rate swaps as well as by adjusting the duration of the Government securities portfolio held for compliance with Statutory Liquidity Reserve (SLR) norms. Further, efforts were undertaken to make the banking-book-interest-rate positions more liquid by selling illiquid loans and substituting them with marketable securities. The focus of trading operations was active, broad-based market-making in key markets including corporate bonds, Government securities, interest-rate swap and foreign exchange markets. A focus area in fiscal 2003 was the delivery of market solutions to corporate clients in various areas such as foreign exchange, fixed

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income and swaps. There was a significant increase in both the volumes and profits from foreign exchange transactions, swaps and loan syndication. As one of the largest players in the corporate debt market, we offered two-way quotes for many corporate debt papers, thereby increasing the liquidity and depth of the market. Effective fiscal 2004, we have restructured our treasury operations to separate the balance sheet management function (which now forms part of the Finance Group), the corporate markets business (which has been integrated into the Structured Finance, Credit & Markets Group) and the proprietary trading activity (which is now housed in a separate Proprietary Trading Group). Project Finance and Special Assets Our project finance activities include financing new projects as well as capacity additions in the manufacturing sector and structured finance to the infrastructure sector and oil, gas and petrochemical sectors. Our project finance business is focused on structuring and syndication of financing for large projects by leveraging our expertise in project financing, and churning our project finance portfolio to prevent portfolio concentration and to manage portfolio risk. We view our role not only as providers of project finance but also as arrangers and facilitators, creating appropriate financing structures that may serve as financing and investment vehicles for a wider range of market participants. Infrastructure Sector In the infrastructure sector, growth is largely determined by the policy guidelines, regulatory framework, long-term sectoral viability and the reforms agenda. The telecommunications industry has been witnessing rapid growth over the last couple of years, driven primarily by the mobile telephony segment. The road sector has also witnessed significant activity, particularly on account of the highway projects
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of National Highway Authority of India (NHAI) which, along with large statelevel projects, are expected to drive growth in the coming years as well. Going forward, we expect the airports, ports and urban infrastructure sectors, to provide significant business opportunities. In the airport sector, there are currently two Greenfield international airports proposed in Hyderabad and Bangalore, and ICICI Bank is playing a key role in both projects. With the corporatization of major ports, emergence of active minor ports and increasing containerization of cargo, there are promising business prospects in the port sector, especially in the area of private terminal infrastructure. We also expect investment activity in urban infrastructure in the medium term, as much-needed reforms are being initiated by the Central and various state Governments. The power sector is expected to benefit from the implementation of comprehensive reforms, driven by the recent enactment of the Electricity Act, leading to business opportunities in distribution and in select generation projects, especially hydro-based projects. ICICI Bank will focus on leveraging its origination capabilities to structure and syndicate project financing.

Manufacturing Sector
Fiscal 2003 saw the overall investment climate in the country turning positive, with the Index of Industrial Production (IIP) recording a turnaround from the decline witnessed in the preceding two years. The manufacturing sector, accounting for a significant proportion of the IIP, recorded an improved performance in fiscal 2003, with growth in both capital goods production and consumer goods production. The buoyancy in the economy observed during fiscal 2003 resulted in a number of projects taking off in the manufacturing and core sector, particularly in the metals, transport equipment and food products segments. Our focus in the manufacturing sector is on projects sponsored by entities that have proven ability to commit the
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required financial resources and implement projects successfully within planned time-frames. We also continue to implement tighter security measures, such as security interests in project contracts and escrow accounts to capture cash flows. We believe that there is significant scope for consolidation in several segments in the manufacturing sector, which presents opportunities for structuring and syndicating acquisition financing.

Special Assets Management

The Special Asset Management Group (SAMG) was formed in fiscal 1998 to build in-house specialised skills in restructuring/recovery activities, restructuring viable projects and seeking early exits from unviable projects. During fiscal 2003, the operationalization of RBIs Corporate Debt Restructuring (CDR) forum, the enactment of the SARFAESI Act and the improvement in performance of key industrial sectors created a positive environment for asset resolution.

International Business
International business has been identified as a key growth driver for ICICI Bank. We believe that the development of a strong international presence would enable us to diversify risks across geographies, support the cross-border needs of our customers, accelerate growth and profitability and build domestic capabilities to match international standards. The initial international strategy is based on leveraging our India linkages be it catering to the varied financial requirements of Non-resident Indians (NRIs), cross-border financing and trade requirements of

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Indian corporates or India-related business requirements of multinational corporations and banks. The focus of our international operations in fiscal 2003 was on capturing a significant share banking relationships with international banks and setting up overseas operations in identified countries. The past year witnessed significant initiatives and successes in NRI services led by a strategy of innovative products, technology-enabled delivery and superior customer service. These initiatives resulted in a significant increase in NRI deposits in fiscal 2003. Remittances recorded significant growth in fiscal 2003, driven mainly by online remittances from the US, UK, Europe, Canada and Singapore. The growth was further enabled by an expansion and deepening of correspondent relationships across the globe. During the year, ICICI Bank launched e-transfer, an online remittance product targeted at NRIs in the US. Customer service was further improved by offering multiple of NRI business and India-related trade finance volumes, developing strong correspondent service channels to customers such as international toll-free service lines (in Canada, USA and UK), chat servicing and a dedicated NRI e-mail handling centre. We have also made considerable progress during fiscal 2003 in establishing our overseas operations. ICICI Bank currently has representative offices in London and New York. The Bank has obtained regulatory approvals from RBI to upgrade its representative office in London to a subsidiary and to establish a presence in Canada, China, Singapore and the United Arab Emirates. Local country regulatory approvals have also been received for a branch in Singapore, a representative office in China and a subsidiary in the United Kingdom. Approvals from other local country regulators are awaited.

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CREDIT RATING During the year, Moodys Investor Service upgraded ICICI Banks senior and subordinated long-term foreign currency debt rating to Baa3 from Ba1, making ICICI Bank the only Indian company with an investment-grade international credit rating. This is also one notch higher than the sovereign rating for India. ICICI Banks credit ratings as per various credit rating.

agencies are given below:

Agency Moodys Investor Service (Moodys) Standard & Poors (S&P Credit Analysis & Research Limited (CARE) Investment Information and Credit Rating Agency (ICRA

Rating Baa3 BB CARE AAA LAAA

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

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

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

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Middle Office Group ICICI Bank has a separate Middle Office Group to monitor both credit and treasury-related compliance. The Credit Middle Office Group monitors compliance with policies and terms of sanction of credit proposals. The Treasury Middle Office Group monitors the asset-liability position under the supervision of the ALCO. It also monitors treasury activities, including determining compliance with various exposure and dealing limits, verifying the appropriateness and accuracy of various transactions, processing these transactions, tracking the daily funds position and all treasury related management and regulatory reporting. Interest-rate risk is measured through the use of re-pricing gap analysis and duration analysis. Liquidity risk is measured through gap analysis. 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. ICICI Bank mitigates its exposure to exchange-rate risk by stipulating daily stop-loss limits and position limits.

Operational Risk
Operational risk can result from a variety of factors, including failure to obtain proper internal authorizations, improperly documented transactions, failure of operational and information security procedures, computer systems and 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
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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. ICICI Bank has been a pioneer in the implementation of a risk-based audit methodology in the Indian banking sector. The Internal Audit Group conceptualizes and implements improved systems of internal controls to minimize operational risk.

INFORMATION TECHNOLOGY
The rapidly evolving banking needs of customers in India have led to an increased focus on information-technology-dependent products and solutions with a view to better serve the consumer. ICICI Bank has identified technology as a key driver of its growth strategy and continues to leverage information technology as a strategic tool for its business operations to gain competitive advantage by offering customer convenience and improved service as well as improving productivity and efficiency. ICICI Banks technology strategy emphasises enhanced levels of customer services through 24x7 availability, multi-channel banking, straightthrough processing, cost efficiency through optimal use of technology-driven channels, wider and focused market reach and opportunities for cross-selling. ICICI Bank also uses technology as a tool to help it understand the customer better, so that it can customize products and services to suit customer needs. The Technology Management Group (TMG) is the focal point for ICICI Banks technology strategy and group wide technology initiatives. This group reports directly to the Managing Director & CEO.
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ICICI Bank is focusing on the integration of its various product and channel systems by effective use of technology. The Bank has implemented an Enterprise Application Integration (EAI) initiative across its retail and wholesale banking business units, linking various product and delivery systems across the two groups. This initiative underpins ICICI Banks multi-channel customer service strategy and seeks to deliver customer-related information consistently across various access points. In line with our commitment to offer its customers a seamless banking experience, we installed our Customer Relationship Management (CRM) software at various customer access points in fiscal 2003. The CRM software solution allows various channels to service customer needs at all touch points, and across all products. The solution has been deployed across the phone banking channel as well as a large number of branches. The solution gives a comprehensive view of the customer at the access point, enhancing understanding of customers and their needs. It optimizes processes and functions related to the customer, to enhance the efficiency and effectiveness of customer servicing. The solution also ensures that every customer request or complaint is tracked till its completion and escalated if standard turnaround times are exceeded.

HUMAN RESOURCES In fiscal 2003, ICICI Bank continued its commitment to acquiring, developing and enhancing its human resource potential. ICICI Bank views its human capital as a key source of competitive advantage. Consequently, the development and management of human capital is an essential element of our strategy and a key management activity.

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Human resources management in fiscal 2003 focused on the continuous improvement of recruitment, training and performance management processes. While ICICI Bank is Indias second-largest bank, it had just over 10,600 employees at March 31, 2003, demonstrating our unique technology-driven, productivity-focused business model. ICICI Bank continues to be a preferred employer at leading business schools and higher education institutions across the country, offering a wide range of career opportunities across the entire spectrum of financial services. Robust ability-testing and competency profiling tools are being used to strengthen the campus recruitment process and match the profiles of employees to the needs of the organization. In addition to campus recruitment, ICICI Bank also undertakes lateral recruitment to bring new skills, competencies and experience into the organization and meet the requirements of rapidly growing businesses. ICICI Bank also encourages cross-functional movement, enriching employees knowledge and experience and giving them a holistic view of the organization while ensuring that the bank leverages its human capital optimally. During fiscal 2003, ICICI Bank recruited over 4,000 employees. ICICI Bank also leveraged icicibankcareers.com, its career website, with a view to build a strong alternative recruitment channel to the traditional channels. Continuous enhancement of knowledge and skill sets is vital, given the rapidly changing business environment and the constant challenges it poses to organizations. ICICI Bank believes that building a learning organization is critical for being competitive in products and services and meeting customer expectations. ICICI Bank has built strong capabilities in training and development to build competencies. Training on products and operations is imparted through web-based training modules. ICICI
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Bank achieved approximately 1.5 web based learning mandays per employee in fiscal 2003. Special programmes on functional training and leadership development to build knowledge as well as management capability are conducted at a dedicated training facility. ICICI Bank also draws from the best available training programmes and faculty, both international and domestic, to meet its training and development needs and build globally benchmarked skills and capabilities. The performance management system at ICICI Bank is based on clearly defined performance parameters and employee empowerment for achievement of goals, reinforcing the Banks achievement-oriented culture. ICICI Bank also has a structured process of identifying and developing leadership potential. ICICI Banks constant endeavour to implement innovative human resource practices has resulted in the creation of an exceptional pool of talent and a performance-oriented organizational culture and has imparted agility and flexibility to the organization.

ORGANIZATIONAL EXCELLENCE
ICICI Bank recognizes the importance of excellence in its business. Developing and deploying world-class skills in a variety of areas such as technology, financial engineering, transaction processing and portfolio management, credit evaluation, customer segmentation and product design, and building and maintaining deep and enduring relationships of trust with our retail and wholesale customers are two essential elements of our strategy. In recognition of the critical importance of excellence in internal processes and delivery to customers, the Organizational Excellence Group was set up in fiscal 2002 to focus on quality initiatives in the Bank. A Senior General Manager, who reports to the Managing Director & CEO, heads the Group. The Group is supported by a team of professionals with
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experience in the field of quality. The Organisational Excellence Group is engaged in institutionalizing quality in the Bank by building skills in various quality frameworks, tracking projects, reporting progress and replicating successes across the Bank. The Group has been partnering with business units in undertaking quality projects, which leverage quality for strategic change and lead to business improvement.

COMMUNITY DEVELOPMENT At ICICI Bank, we believe that, as one of the largest participants in the financial system of the country, we need to contribute to the overall economic and social development of India. A dedicated not-for-profit group, the Social Initiatives Group (SIG) works to catalyze this effort, with the mission to identify and support initiatives designed to improve the capacities of the poorest of the poor to participate in the larger economy. ICICI Bank believes that ensuring health, education and access to financial services is critical for facilitating this participation. Within these, the specific areas identified for focused attention are infant health at birth, elementary education and micro-financial services. To fulfil its mission, ICICI Bank seeks to address key knowledge and practice gaps that currently impede the achievement of national goals in these sectors. It, therefore, supports projects that are cost-effective, measurable and capable of large-scale replication, and have the potential for both near and long-term impact.

Infant Health at Birth

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In this area, important initiatives in fiscal 2003 included support to the introduction of additional health workers in rural areas for improving the quality and accessibility of existing publicly provided health and nutrition services. ICICI Bank has formed a partnership with the Government of Jharkhand and NGOs such as Krishi Gram Vikas Kendra (KGVK), CARE and the Child In Need Institute (CINI) to pilot the additional health worker strategy in two blocks of the Ranchi district in Jharkhand.

Elementary Education Our initiatives in elementary education seek to work towards maximising the number of 14-year-olds who have a basic level of education. While continuing our support to organizations such as Pratham, we initiated a number of new relationships in fiscal 2003. We funded the Centre for Learning Resources, Pune to undertake a radio programme in every upper-primary municipal school in Mumbai and Delhi. The objective of this programme is to strengthen language skills of students. We also formulated a work plan with the Bhopal-based NGO, Eklavya, that specialises in teacher training and curriculum design.

Micro-Financial Services Our micro-financial services initiative aims at maximizing access of the poor to banking, credit and insurance. A key element of our strategy is to create better interfaces between institutional financial services providers and community based organizations. In fiscal 2003, we launched an initiative with the DHAN Foundation, Madurai to develop a scalable strategy for bank linkage of self-help
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groups. A study for the development of a comprehensive insurance plan with the Society for Elimination of Rural Poverty (SERP) in Andhra Pradesh is currently underway.

SUBSIDIARY COMPANIES

Domestic Subsidiaries ICICI Securities Limited ICICI Venture Funds Management Company Limited ICICI Prudential Life Insurance Company Limited ICICI Lombard General Insurance Company Limited ICICI Home Finance Company Limited ICICI Investment Management Company Limited ICICI Trusteeship Services Limited ICICI Brokerage Services Limited

International Subsidiaries ICICI Bank UK Limited ICICI Securities Holdings Inc. ICICI Securities Inc. ICICI International Limited

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Milestones of ICICI Bank

2011
y For the second year in a row, ICICI Bank was ranked 70th in the Brandirectory league tables of

the worlds most valuable brands by ,The BrandFinance Banking 500. y ICICI Bank UK, HiSAVE product range has been awarded the Consumer Moneyfacts Awards 2011 for the 'Best Online Savings Provider' y ICICI Bank ranked second in the financial services sector in Business World's,"Most Respected Company Awards 2011" y ICICI Bank was ranked 1st in the Banking and Finance category and 9th in the "2010 Best Companies To Work For" by Business Today y Ms. Chanda Kochhar, Managing Director & CEO, ICICI Bank conferred with "Padma Bhushan" 1994 - The Bank was Incorporated on 5th January at Baroda. ICICI Bank Was promoted by ICICI and erstwhile SCICI Ltd. and received the Certificate for Commencement of Business on 24th February. It does banking business of all kinds. It was founded as an institution to provide quality banking services using state-of-the-art technology. - The Bank has established a well diversified branch network with 24 branches in 15 centres covering 12 states. The bank set up a fully computerised environment with the State-of-the-art technology at all offices continuously upgrading its strong systems and proceduresWith special emphasis on risk management. 1996 - The deposit products and other services of the bank were branded with names such as `Maxicash' for services accounts, `Money Plus' for Current Account, `Quantum' for fixed deposit account, `Power Pay' for payroll accounts treasure chest for locker facilities and `Trice' for automated teller machine facility. - The Bank had, in compliance with a directive issued by RBI, deposited in aggregate Rs 88.16 crores with small Industrial Development Bank of India and National Bank for Agricultural & Rural Development. - The `B' category branches were authorised to handle full range of foreign exchange transaction of customers and five other branches were placed in `C' category to handle limited foreign exchange transactions. - Seven branches of the bank with substantial foreign exchange business were linked to the society for worldwide Interbank Telecommunication (SWIFT) network which enables them to transmit Letter of Credit and fund transfer messages promptly world wide.

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- 700 No. of equity shares subscribed for by signatories to the Memorandum of Association. 1500,00,000 No. of equity shares allotted to ICICI Ltd. 1997 - The bank introduced electronic funds transfer facility. The bank has a full fledged vigilance and inspection department. - The bank opened 11 branches and 2 extension counters thereby increasing the total network of branches to 33 and extension counters to 4. - The Bank offered 150,00,000 No. of equity shares of Rs 10 each at a prem., of Rs 25 per share to ICICI. - The Bank offered for sale 412,50,200 No. of equity shares of Rs 10 each at a price of Rs 35 per share. - Sicom Ltd. has entered into an agreement with ICICI Bank and Dresdner Bank for providing a counter guarantee against letters of credits (LCs) opened by its clients. - The merger of SCICI with ICICI effective from April 1, the bank has become a wholly-owned subsidiary of ICICI. - ICICI Banking Corporation, a fully-owned subsidiary of Industrial Credit & Investment Corp of India Ltd, has finalised an offer for sale of 4 crore equity shares of Rs.10 each at a premium of Rs.30 per share, according to merchant banking sources. 1998 - ICICI Bank, which introduced Internet banking in India, is set to launch various technologybased new services in the near future. Some of the new services include setting up of call centres and the introduction of fund transfers between own accounts in its branches. - ICICI Banking Corporation Ltd, the first bank in the country to go in for Internet banking, is now all set to provide its account-holdersmwith the facility of transferring funds across their accounts on theNet. 1999 - ICICI Bank has signed an agreement to use the NCR switchmark technology for onlinenetworking all its ATMs, the officials said they network would come into place in September. - ICICI Bank recently restructured its organisational structure by setting up strategic business units for retail banking, corporate banking and forex and treasury operations, as independent profit centres. - ICICI is all set to launch a 60-second television commercial on
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August 15, 1999. 2000 - ICICI Bank became the first Indian bank to list on the New York Stock Exchange with its 5-million American depository shares issue generating a demand book 13 times its size at .2 billion. - The Bank proposes to bring credit cards to the large, underserved population in rural and semi-urban areas. - SkyCell Communications Ltd, one of the two cellular service Providers in Chennai, has launched `Sky Banking', for which the company has Tied up with ICICI Bank and HDFC Bank. - The ICICI has announced the launch of mobile banking services for itscustomers, using the wireless application protocol (WAP) technology. - Ford India has tied up with ICICI Bank to introduce a scheme, enabling non-resident Indians (NRIs) to purchase a Ford Ikon car for their friends and relatives in India. - ICICI Bank has set up a ATM facility at a Indian Oil Corporation petrodiesel outlet at Chennai. - ICICI Bank has tied up with Chennai Telephones to provide Internet bill payment facility to its customers. - ICICI Bank has tied up with the Siddhivinayak temple trust to enable the bank's infinity (Internet banking) customers to order and pay for a pooja online, on the occasion of Aangaraki Chaturthi. - The Bank proposes to extend its area of operation by opening about 35 to 40 offices and extension counters during the current fiscal subject to the Reserve Bank of India's approval. - ICICI Bank will launch a slew of new schemes in the personal segment ranging from launch of co-branded credit cards to providing loans against share within the next three months. - The Company has offered higher rates of interest on its regular income bonds and multiplier bonds while pruning it on tax saving bonds. - The Finance portal India Infoline has tied up with ICICI Bank and
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HDFC Bank for banking back-ends. - Tata Teleservices Ltd. has tied up with ICICI Bank and Global Trust Bank to enable its customers to use Internet banking facilities for the payment of telephone bills. - ICICI Bank will provide credit for online transactions over chem-B.com, the online trading site for chemicals and chemical products, launched by Chembazaar Online Pvt. Ltd. 2002 - ICICI Bank Ltd has informed that the Board of Directors inducted Shri N Vaghul, as an Additional Director on the Board of the Bank. non-executive whole-time director and also the non-executive Chairman of ICICI Ltd. - The board of directors of ICICI Bank and ICICI in separate meeting at Mumbai, approved the merger of ICICI with ICICI Bank. The merger of two wholly-owned subsidiaries of ICICI, ICICI Personal Financial Services and ICICI Capital Services, with ICICI Bank was also approved by the respective Boards.The high courts of Mumbai and Gujarat, and the Government of India (GOI) as may be required. Consequently, the appointed date of merger is proposed to be March 31, 2002, or the date from which RBI's approval becomes effective, whichever is later. - The scheme of amalgamation envisages a share exchange ratio of one domestic equity share of ICICI Bank for two domestic equity shares of ICICI. As each American Depositary Share (ADS) of ICICI represents five domestic equity shares while each ADS of ICICI Bank represents two domestic equity shares, the ADS holders of ICICI would be issued five ADS of ICICI Bank in exchange for four ADS of ICICI. -ICICI Bank Ltd has informed BSE that Reserve Bank of India on April 26, 2002 approved the merger of ICICI Ltd and two of its wholly owned subsidiaries, ICICI Personal Financial Services Ltd and ICICI Capital
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Services Ltd with ICICI Bank Ltd. -ICICI Bank acquires Shimla and Darjeeling Branches from Standard Chartered Grindlays Bank. -K V Kamat appointed MD and CEO, Lalita D.Gupte Joint MD -Ties up with NCR Corporation, ATM manufacturer -Merged ICICI Bank makes debut on BSE and NSE -Rallis terminates contract farming agreement with ICICI Bank -Allots equity shares to erstwhile equity shareholders of ICICI -ICICIdirect.com, the brokerage arm, launches online trading in derivatives -Put on sale the land held by Pal Peugeot - the defunct joint venture between Premier Automobiles and Peugeot -Introduces first home loan securitisation scheme of Rs 58 crore -Buys 190 Ajmera reisdential flats for Rs 37 cr -Sanctions debt restructuring package to Alufluoride Ltd. -Takes over Shimla and Drajeeling branches of Standard Chartered Bank -Bank of India (BoI) ties up with ICICI Bank to utilize former's wide branch network covering 1,000 branches for the latter's cash management services -ICICIdirect.com unveils Direct Alerts -AirTel, in tie-up with the ICICI Bank, declares the launch of re-charge facility for the AirTel Magic pre-paid cards on ICICI Bank's ATM network in the twin cities of Hyderabad & Secunderbad in Andhra Pradesh -ICICI Bank bags UK Banker Magazine award -Introduces Roaming Current Account, a new current account product -Launches call centre in Hyderabad -Hamblin Watsa Investment Council acquires 42.31 million equity shares of ICICI Bank
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-101.4 million shares of ICICI Bank held by ICICI Ltd. transferred to the ICICI Bank Shares Trust -ICICI Bank divests 16.5% stake for Rs 1,320 crore -Foreign holding in ICICI Bank reaches 62% -Lalbhais acquire ICICI's 10% stake in Amtrex Hitachi -Orcasia acquires 42.31 million equity shares of ICICI Bank -SBI, ICICI Bank feature among top 100 banks in Asia -ICICI Knowledge Park, Apollo Hospitals ink MoU -Launches chip-based credit card for transporters -ICICI Bank launches `Drivesmart' credit card for transporters -Buys 'Sobha Pearl' property in Bangalore owned by Sobha Developers for Rs 20 crore -Launches new initiative called '180 degree feedback' -Unveils 'eTransfer' for NRI's -ICICI Knowledge Park ties up with Apollo Hospitals -HDFC MF ties up with ICICI Bank for Any Time Mutual Fund (ATMF) service -Signs MoU with Food Ministry for optimal utilisation of Plan funds and to bring in professional appraisal in project financing -SBI divests 10 lakh shares of ICICI Bank -ICICI Bank, RPG Cellular Services Ltd. in alliance for recharge facility at ATMs -Takes posession of Mardia Chemicals Unit under NPA Act -Becomes the first Indian bank to launch a Resident Foreign Currency (RFC) account -ICICI Bank chairman Mr. N Vaghul heads Asset Reconstruction Company
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(ARC) -ICICI Bank, HPCL launch co-branded Visa Electron Debit Card -Launches `Welcome Kit' which will help the person, who opens an account with ICICI Bank to operate his account immediately 2003 -Launches micro-finance programmes -ICICI Onesource deploys new recruitment system -Sets up NRI advisory service -Singapore govt offloads 2-cr shares of ICICI Bank -Bank chief K V Kamath appointed head of finance panel for river linking project -Launches 'Give2India' to facilitate donations by NRIs -Comes out with a bond issue of Rs 400 crore -Installs Telugu language ATMs in Hyderabad -Launches 'ICICI Bank Pure Gold'-certified and tamper proof 24-carat pure gold coins in Chennai -Collects over Rs 1,200-cr via first bond issue -Obtains 'excellence in retail banking' award instituted by the Singapore-based Asian Bankers Journal -ICICI Bank-led combine gets approval for Nationwide Multi Commodity Exchange (NMCE) set up -BioServe takes up about 3,000 sq.ft space at the ICICI Knowledge Park to set up a contract research lab -Sets up integrated currency management center in Pune -Rama Newsprint & Papers Ltd allots 5632129 no. of Equity shares to ICICI Bank Ltd on conversion right exercised by them -HDFC, ICICI buy 33-pc stake in Hindustan Coca-Cola Beverages, the Indian bottling subsidiary of the Atlanta-based carbonated soft drinks giant Coca-Cola
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-Reliance Info forges alliance with ICICI for bill receivables -Ties up with Employees Provident Fund Organisation to distribute pension across the country -Ties up with TeNet for micro-banking -Starts 12-hours banking services -ICICI Bank restructures organisational structure -Acquires the Credit Card Division of Tata Finance -Air India ropes in ICICI Bank as authorised dealers for hedging

-ICICIdirect introduces tax-free Savings Bond '03 online -Videsh Sanchar Nigam Limited (VSNL) and ICICI Bank have announced a tie-up for the distribution of Tata Indicom`s dial-up Internet services -ICICI Bank offers rail ticket booking facility to its customers -Buys Apple Credit's 30-pc stake in Transamerica Apple Distribution Finance Ltd. (TADFL) -Takes over 100-pc of TADFL -Outgoing ICICI Bank Joint Managing Director Mr. H N Sinor becomes new chief executive and secretary of Indian Banks Association (IBA) -ICICI Bank, HDFC Bank tie up with Indian Railway Catering and Tourism Corporation (IRCTC) for online rail bookings -ICICI Bank, DaimlerChrysler team up for new finance scheme -Gets Insurance Regulatory Development Authority (IRDA) nod for India Advantage Fund -Announces VRS, the first for the new generation private sector banks -Bags DM Review World Class Solution Award 2003

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-Enters into an institutional agreement with Dubai Bank wherein ICICI Bank would be the principal correspondent bank of Dubai Bank in India -Signs option contract with BHEL -ICICI Bank's 1350 employees opt for VRS -Textile sector leads ICICI Bank's NPA -Approves 7.3 million options to its employees -Birla Tyres ties up with with ICICI bank to offer Rs 2 lakh life insurance benefit to the truck drivers on the purchase of every pair of tyres -Inaugurates its first Offshore Banking Unit (OBU) at SEEPZ Special Economic Zone, Mumbai -ICICI implements NCR solution (Cheque Mark PDC Module) for post dated cheques -ICICI Bank picks up Timesofmoney.com's e-filing service -ICICI Bank acquires 17.75% stake in NDTV -Launches 'Instra Transfer', an NRI remittance product, which will enable NRIs in the Gulf to transfer funds to India within two hours -Acquires 36,000,000 shares amounting to 12.65% of Himachal Futuristic Communications Ltd (HFCL) -Divests 0.31% shares in Federal Bank -Converts part of HFCL loan into equity shares giving 12.65% stake in the company -Inaugurates Singapore branch -Decides to take the service of Bollywood Superstar Amitabh Bachchan (Big B) on purely caseto-case basis -ICICI Bank in alliance with Federation of Automobile Dealers Association (FADA) unveils credit card for vendors to dealers and opens a business-to-business (B2B) section in FADA's Web site -West Coast signs agreement to acquire ICICI's 34 percent stake in Rama Newsprint & Papers Ltd. (RNPL) -Investmentz.com forges alliance with ICICI Bank customers for real-time transfer of funds
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-Banker Magazine of UK confers its 'Best Multi-Channel Strategy 2003' and Bank of the Year 2003' awards to ICICI Bank -Instanex Skindia depository receipts index increases the index percentage of market capitalisation used for ICICI Bank to 95 per cent from 75 per cent -ICICI Bank in association with the Federation of Automobile Dealers Association (FADA) unveils a credit card for vendors to dealers and opens a business-to-business (B2B) section in FADA's Web site -Issues notice to Ponni Sugars (Orissa) Ltd. to take possession of the Balangir Sugar Mill - Allottment 287774 equity shares of face value of Rs.10/- each on October 13, 2003 under the Employee Stock Option Scheme. -ICICI tie up with Big Bazaar to introduce Co-branded Card specifically for Big Bazaar customers. -Five persons have been arrested on the charge of duping ICICI Bank of Rs 1.34 crore by encashing a cheque purported to have been issued by Fortis Banque of France.. 2004 -ICICI bank credit cards cross two million mark - ICICI Banks 300 million dollar Eurobond has been awarded for being the best bond issue of India and emerging Asian market during 2003, by two foreign magazines. -ICICI ePayments Ltd. has informed that they have acquired 8008357 shares amounting to 69.99% of the total paid up capital of Tata Infomedia Limited -ICICI Bank Ltd has informed that the Bank has allotted 1,25,444 equity shares of the face value of Rs 10/- each on December 22, 2003 under the Employees Stock Option Scheme, 2000 (ESOS). -The government has allowed ICICI Bank to keep the Rs 350 crore 20-year preference shares (subscribed to by ITC) in its books for five years.

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-ICICI Bank Ltd has informed that the Bank has allotted 73,980 equity shares of the face value of Rs 10/- each on December 29, 2003 under the Employees Stock Option Scheme, 2000 (ESOS). -Bahrain Monetary Agency issues licence to ICICI Bank's overseas unit. It also extended a special concession for offering NRI banking services in the island nation as well as in the international markets 2004 -ICICI Bank inks pact with Mohan Bagan to unveil co-branded credit card -ICICI-Overdrive awards for Honda City, Bajaj Pulsar -ICICI Bank ties up with Air Deccan -ICICI Bank opens new premises in Mangalore -ICICI Bank unveils mobile ATM in Kerala -ICICI Bank unveils International fixed deposit scheme at Singapore branch -ICICI Bank acquires numero uno position in new remittance shceme -ICICI Bank sets up ATM in Thiruvananthapuram -ICICI Bank launches its new home Loan Scheme With Variable EMI -ICICI Bank Ltd has informed that the shares of the Bank are delisted from The Delhi Stock Exchange Association Limited with effect from February 11, 2004. -ICICI Bank, Mohun Bagan launch co-branded credit card -The world's largest micro-finance securitisation deal of .3mn completed between ICICI Bank and Share Microfin Ltd., a Hyderabad based microfinancing organisation -ICICI Bank signs a memorandum of understaning with Jammu and Kashmir Bank to share the ATM network. -ICICI Bank and Andhra Bank have announced a tie-up, that enables sharing of their ATM networks. -Global Finance magazine has named ICICI Bank as one of the Best Emerging Market Banks Asia in an exclusive survey to be published in
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the May 2004 issue. -Comes out with a public offering of equity shares at a price of Rs 280 to raise Rs 3500 crore with a greenshoe option of Rs 450 crore -ICICI Emerging Sector, the private equity arm of ICICI Bank, has acquired a 54 per cent stake in the Bangalore-based Arvind Brands, the apparel arm of the Sanjay Lalbhai-promoted Arvind Mills, -ICICI Bank unveils Car Overdraft facility -ICICI Bank, SBI, LIC in pact for Rs 20,000-cr projects -ICICI Bank and Punjab National Bank have signed a memorandum of understanding (MoU) for ATM network sharing, giving customers an access to over 2,200 ATMs in India. -ICICI Bank bags Internet awards from Global Finance magazine -ICICI Bank Home Loans and ICICI Bank Home Search have launched `Home Utsav', a property exhibition at the Institute of Engineers -ICICI Bank Ltd on August 9, 2004, opened its representative office in Dhaka further increasing its international presence. In light of the significant bilateral trade links between the two countries, the bank greatly values the need to have an on-the-ground presence -ICICI Bank offers new service to Canada emigrants -ICICI Bank rolls out kisan credit card in AP - Launches `Easy Deposit Card', which charges an interest of 0.99 per cent per month -ICICI Bank launches new mobile phone banking service -Sets up offshore banking unit (OBU) in Bahrain -Launches a new service for pre-paid subscribers of Airtel, Hutch, Orange and IDEA in association with Euronet to recharge cards through bank's ATMs or by sending SMS. -ICICI Bank has signed a deal with SunTec Business Solutions Private Ltd

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-ICICI Bank unveils Visa Card in UK -ICICI Bank in ally with CESC launches new co-branded credit card -Godrej Sara Lee ties up with ICICI Bank to finance distributors across the country through the channel financing model -Hindustan Petroleum Corporation Ltd (HPCL), ICICI Bank on December 23rd launches Drivesmart 2005 - ICICI Bank overtakes Citibank in credit cards with 3 mn credit cards while Citibank says it has 2.5 mn cards -ICICI inks pact with Godrej Sara Lee for channel financing -Merc joins hands with ICICI Bank to offer loans -ICICI Bank unveils office in Johannesburg - Britain's Lloyds TSB, in association with ICICI Bank, on April 18, 2005, launches new services offering free money transfers between India and the UK, as well as access to rupee mortgage for Indian property purchases. -ICICI Bank-Air Deccan credit card unveiled -ICICI Bank acquires bank in Russia -ICICI Bank, HLN jointly launch co-branded credit card -ICICI Bank launches online Public Provident Fund (PPF) scheme on July 01, 2005 -ICICI Bank forges alliance with Fortis to serve NRIs on July 22, 2005 -ICICI Bank buys Apnaloan -ICICI Bank Home Loans launched a `Home Utsav' property exhibition on August 18th -Bharti Tele-Ventures on September 19 announced a tie-up with ICICI Bank and Visa to launch credit card on the mobile phone

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--ICICI Bank rolls out travel smart mastercard --ICICI wins Microsoft Corporate Challenge -ICICI Bank teams up with Hong Kong's Bank of East Asia to offer services to its clients with operations in greater China. -ICICI Bank inaugurates 1st branch in Hong Kong -ICICI bank ties up with Grameen Foundation USA to set up Grameen Capital India. -ICICI Bank's 0 million American depository shares (ADS) issue has been subscribed six times the issue size. The issue closes tomorrow concurrently with the Rs 5,750 crore public issue of equity shares in the domestic market. The domestic issue has received subscriptions for 1.86 times the 9.90 crore shares on offer. -ICICI Bank sets up pilot project in Guntur dist -ICICI Bank as outperformer: CLSA report 2006 -ICICI Bank sets up Russian subsidiary -ICICI Bank sets up new branch at Banjara Hills -ICICI bank teams up with Spanish MNC. -ICICI Bank sets up branch in Belgium -JBIC inks agreement with ICICI Bank -Indian inks deal with ICICI Bank -Dishman inks mn deal with ICICI Bank -ICICI Bank inks MoU with Mitsubishi UFJ Securities -ICICI Bank is looking at increasing its share of the growing Indian remittance market. ICICI Bank on February 8 rolled out a rupee-denominated remittance card that is primarily targeted at beneficiaries of non-resident Indians (NRIs). -Mumbai: ICICI Bank has inked a co-operation pact with Austria-based
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Raiffeisenlandesbank Obersterreich (RLB) for covering several business areas and increasing co-operation in funding commercial and syndicated credit business, and cash management services. -ICICI bank sets up first branch in Madikeri. -Indian Railways and ICICI Bank inked a memorandum of understanding for extending the sale of e-tickets via merchant establishments located in 125 cities across the country. -ICICI bank mops up 0mn through five-year bond. -BMW India and ICICI Bank on February 23 signed an agreement for offering financing solutions that will benefit the prospectiv buyers. -Thomas Cook (I) Ltd (TCIL) has joined hands with ICICI Bank to introduce a first of its kind premium card named Thomas Cook Titanium Mastercard. - ICICI Bank, India's second largest Bank, and Export Development Canada (EDC), Canada's Export Credit Agency, on March 13, signed a USD 50 million Line of Credit (LoC) agreement. -ICICI Bank inks agreement with Emirates Bank. -CRISIL assigns highest ratings to ICICI Bank's loan receivables securitisation programme. - ICICI Bank offers cheaper loans for cutting down CFC. -ICICI sets up branch in Birmingham. History and Major Events We were incorporated in 1994 as a part of the ICICI group. Our initial equity capital was contributed 75.0% by ICICI and 25.0% by SCICI Limited, a diversified finance and shipping finance lender of which ICICI owned 19.9% at December 1996. Pursuant to the merger of SCICI into ICICI, we became a wholly owned subsidiary of ICICI. The chronology of events since we were incorporated in 1994 is as follows: Change of name Our name was changed from ICICI Banking Corporation Limited to ICICI Bank Limited on September 10, 1999. The change of name was effected on account of our being widely known by the name ICICI Bank. Merger of Bank of Madura

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Bank of Madura was merged with us effective March 10, 2001. The share exchange ratio fixed for the transaction was two of our equity shares of Rs. 10 each for every equity share of Bank of Madura of Rs. 10 each. Amalgamation of ICICI ICICI, ICICI Capital Services and ICICI Personal Financial Services amalgamated with us with effect from May 3, 2002. The Appointed Date for the merger specified in the Scheme of Amalgamation, which was the date of the amalgamation for accounting purposes under Indian GAAP, was March30, 2002. The amalgamation was approved by the High Court of Judicature at Bombay vide its order dated April 11, 2002 and by the High Court of Gujarat at Ahmedabad vide its order dated March 7, 2002. The share exchange ratio was one of our equity shares of Rs. 10 each for every two equity shares of ICICI of Rs. 10 each. Amalgamation of The Sangli Bank Limited The Board of Directors of ICICI Bank Limited and the Board of Directors of The Sangli Bank Limited (Sangli Bank) at their respective Meetings held on December 9, 2006, approved an all stock amalgamation of Sangli Bank with ICICI Bank. The amalgamation was subsequently approved by the Members of both banks. RBI (RBI) approved the scheme of amalgamation effective April 19, 2007. Source date - Prospects - 19/06/2007 - ICICI Bank mops up .9bn in via share sale in India. - ICICI mops up Rs 1,294cr through green-shoe option. - ICICI Bank signs pact with Korea Exim Bank. - ICICI Bank has slashed the rates on special deposit schemes by 50 basis points from 9.5 per cent to 9 per cent. - ICICI Bank awarded as the Outstanding Regional Private Bank. -The Department of Commerce, PSG College of Arts and Science, Coimbatore, is all set to conduct a training programme for students in association with the ICICI Bank. - ICICI Bank, under its-Industry-Academia Partnership- programme, is in talks with three leading universities of the West Bengal to launch banking and insurance courses. 2008
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- ICICI Bank Ltd has informed that the Government of India has nominated Shri. Arun Ramanathan, on the Board of the Bank effective January 18, 2008 in place of Shri. Vinod Rai who has resigned effective January 06, 2008. - ICICI Bank Ltd has informed that the Government of India has nominated Shri. Arun Ramanathan, on the Board of the Bank effective January 18, 2008 in place of Shri. Vinod Rai who has resigned effective January 06, 2008. - ICICI Bank has forayed into Rs 1,150-crore equity-cum-debt deal with Jaypee Infratech, which is to build and operate the 165-km six lane Taj Expressway linking Noida with Agra. -Standard & Poor's Ratings Services lowered ICICI Bank Ltd.'s 0 million U.S. commercial paper program's short-term issue credit rating to 'A-1' from 'A-1+', following the agency's downgrade of Fortis Bank SA/NV. 2009 - ICICI Bank appointed N S Kannan as the Executive Director and Chief Financial Officer on the board with effect from May 1 following the vacancy caused by the elevation of Chanda Kochhar as Managing Director and CEO of the bank, with effect from May 1. - ICICI Bank has announced the cut in the interest rates on floating home loans for new borrowers by 25-50 basis points, with immediate effect. The interest rates on existing home loans would reduce only if the floating reference rate is cut. - ICICI Bank with Singapore Airlines launched ICICI Bank Singapore Airlines Visa Platinum Credit Card, the Card has exclusive privileges especially designed for the members. - ICICI Bank Limited acting through its Hong Kong Branch (ICICI Bank) signed a loan agreement with the Export-Import Bank of China (China Exim) for USD 98 million under the Two- step Buyer Credit (Export Credit) arrangement. ICICI Bank is the first Indian Bank to have entered into this arrangement with China Exim. 2010

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- ICICI Bank has increased deposit rates on select maturities. The bank has raised the interest rate on deposits maturing in 270 days to less than one year by 25 basis points to 5.75 per cent for deposits of Rs 15 lakh to Rs 1 crore. - ICICI Bank increased its deposit rates in select tenures by up to 0.50% with instant effect, signaling hardening of interest rates in the industry. - ICICI Bank has announced the appointment of Mr Rajiv Sabharwal as a whole-time director of the bank. The bank said Mr Sabharwal is designated as an Executive Director effective June 24. Mr Sabharwal was heading the bank's retail banking operations. - ICICI Bank announced the appointment of Mr Rajiv Sabharwal as a whole-time director of the bank.

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CHAPTER-4

SWOT ANALYSIS

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SWOT ANALYSIS OF ICICI BANK LTD

STRENGTHS
1. BRAND NAME: ICICI Bank has earned a reputation in the market for extending quality services to the market vis- -vis its competitors. It has earned a strong Brand name in banking in a very short span of time. 2. MARKET SHARE: ICICI Bank has the largest market share of 34% in the IT & ITES industry in Hyderabad according to our survey (within the limitation of the sample size.) 3. HUGE NETWORK: ICICI Bank has the highest number of linked branches in the country. The bank operates through a network of 450 BRANCHES AND over 1800 ATMs across India, thus enabling them to serve customer in better way. 4. DIVERSIFIED PORTFOLIO: ICICI Bank has all the products under its belt, which help it to extend the relationship with existing customer. ICICI Bank has umbrella of products to offer their customers, if once customer has relationship with the bank. Some Products, which ICICI Bank is offering are: Retail Banking Business Banking Merchant Establishment Services (EDC Machine) Personal loans & Car loan Demat Services with E-Broking Mutual Fund (ICICI Bank is the Distributor of all Mutual Fund) Insurance Housing Loans

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5. SALARY ACCOUNT: One very interesting thing that we have observed in our survey is that ICICI is having an edge over other banks in case of Salary Account. Most of the companies are having their Salary Account with ICICI even if their Current Account is with any other Bank. This is mainly because of the huge network of ATMs and branches of ICICI. 6. WORKING HOURS: ICICI is the only bank which is having its working hours from 8 to 8 which is one of the major strength of ICICI Bank with respect to IT & ITES Industry. As most of the IT & ITES companies are global players and their Parent company is in US, so they have to work according to their office time. Thus some have their Office time in the morning and some have it in the evening so if the working hour of the bank is 8 to 8 it is very convenient for them. 7. TREASURY DEPARTMENT: ICICI is the only bank which is having its treasury department especially for Hyderabad Customers. So customers can get the best rates for foreign exchange. 8. AGGRESSIVE MARKETING: ICICI Bank is known for its aggressive marketing of its products. Recent Endorsement of its product by AMITABH BAHCHAN proves the same. This gives ICICI an edge over other banks

9. TECHNOLOGY: From its inception, ICICI Bank has adopted a policy of selecting internationally proven and specialized Packaged Systems for its technology. ICICI banks technology platform has been acknowledged globally as one of the best in terms of robustness, flexibility and cost efficiency. ICICI Bank is in a position to leverage this platform to further build cost and service advantage.

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WEAKNESS
1. TRANSACTION COST: ICICI Bank charges high cost for its transactions. Through our data analysis we have find out that most of the small companies prefer nationalized banks only because of this cost factor. Also the group has found out that there are companies which are going for multi bank system i.e. they are using only those facilities of ICICI Bank which are provided at cheaper rates (read Salary Account) and for other services they are going to nationalize banks and MNCs (read Forex). So there exists a huge potential for ICICI Bank if they are ready to make their transaction cost flexible. 2. FOCUS ONLY ON HIGH END CUSTOMERS: The bank targets only the top bracket of clients and does not cater to the needs of small customers. Due to this reason the bank may sometimes loose good clients. 3. DEFENSIVE APPROACH IN LENDING: ICICI Bank has a defensive approach in lending. Mainly to IT & ITES companies Bank do not provide loan as these companies are not having collaterals so bank hesitate in giving loans to them. Because of this policy companies prefer nationalized banks and ICICI Bank in turn sometimes loose potential customers. 4. LITTLE PRESENCE OUTSIDE INDIA: ICICI Bank is having little presence Outside India, because of which companies are preferring MNC Bank, mainly Citibank. So if ICICI Bank tries to emerge outside India then it has a huge potential of customers. 5. POOR CUSTOMER CARE/SERVICE: With its aggressive marketing ICICI Bank is rapidly increasing its customer base. They are not however, increasing the number of employees accordingly. This is leading to deterioration of the standard of customer service.

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OPPORTUNITIES
1. NEW IT & ITES COMPANIES: IT & ITES sector is on a boom in the Indian market context, with new companies mushrooming in the market; it opens the door for ICICI bank to capture the huge untapped market. 2. DISSATISFIED CUSTOMERS OF OTHER BANKS: The group from its survey and analysis of IT companies have found out that there are many companies which are not satisfied with its current bank, so ICICI with its superior service quality and long working hours can capture those customers. 3. REMMITENCE: From the analysis group has also found out that ICICI bank has very little presence as far as the EEFC account is concerned. Companies prefer to bank with MNCs (which have greater presence in the foreign countries) and nationalized banks (which according to the companies provide lower transaction rates) to get their inward remittances in spite of ICICI being providing one of the most competitive rates. So the bank can promote its EEFC account better and get the key to the door of huge potential market. 4. BUISNESS ADVISING FOR SMALLER PLAYERS: The analysis has also indicated that the concept of business advising though very popular with the higher end players is virtually non existent in the lower end of the market. ICICI should take this opportunity to provide business advising to the smaller companies at competitive rates and try to take the first mover advantage.

THREATS
1) ADVENT OF MNC BANKS: Large numbers of MNC banks are mushrooming in the Indian market due to the friendly policies adopted by the government. This can increase the level of competition and prove a potential threat for the market share of ICICI bank.
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2) DISSATISFIED CUSTOMERS: The analysis indicated that though most of the companies are satisfied with the products offered by ICICI bank but the poor customer support/ service is creating a lot of dissatisfaction among the customers, this can prove to be a serious problem as far as the market reputation of the bank is concerned and cane be a major threat in future business acquisition. 3) EVER IMPROVING NATIONALISED BANKS: With PSU banks like SBI going all out to compete with the private banks and government giving them a free hand to do so, it can prove to be serious threat for banks like ICICI.

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CHAPTER-5
Recommendations & Conclusion

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Recommendations

1. ICICI bank must do something to grab the attention of rural areas. Still villagers prefer PSU over private banking. 2. The satisfaction level of the customers regarding investment assistance can be increased by: - Providing separate section in the bank for investment assistance. Customers who are interested in investments can come there and ask their queries. - Whenever any new fund launched customers must be informed about it timely.

3. Bank should make efforts to promote use of internet banking among key customers. 4. Bank should make sure that all relevant statements should reach to the key customers in time.

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Learnings From ICICI Bank - CRM is not exclusively a marketing initiative. Many organizations have merely equated CRM with customer focused marketing. CRM results in more effective , data driven marketing efforts, CRM requires marketing expertise.

- CRM is not exclusively service initiative. As with sales and marketing, customer service is one functional part of successful CRM implementation. But customer service is not the sole driver of the process.

- CRM involves marketings, sales, service and technology as well as the other inner workings of an organisation.

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