ICICI Bank History

1955 The Industrial Credit and Investment Corporation of India Limited (ICICI) was incorporated at the initiative of World Bank, the Government of India and representatives

of Indian industry, with the objective of creating a

development financial institution for providing mediumterm and long-term project financing to Indian businesses.

ICICI Bank

ICICI bank was established in 1994 , grown to one stop shop for all banking products ICICI was incorporated in 1995 and developed into

diversified financial group.

The merger was in 2002 , The consideration was equity shares of ICICI bank .

The shareholders of ICICI were issued ICICI bank equity

shares in the ratio of 1:2

CONT

In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger of ICICI and two of its wholly owned retail finance subsidiaries, ICICI Personal Financial Services Limited and ICICI Capital Services Limited, with ICICI Bank. The merger was approved by shareholders of ICICI and ICICI Bank in January 2002, by the High Court of Gujarat at Ahmedabad in March 2002, and by the High Court of Judicature at Mumbai and the Reserve Bank of India in April 2002.

ICICI Personal Finance

ICICI Personal Financial Services Limited (ICICI PFS), formerly known as ICICI Credit Corporation Limited, is a Non-Banking Financial Company. It had operations

ranging from leasing and hire purchase to distribution and

servicing of all retail products for the ICICI Group. ICICI PFS deals in products including auto loans, consumer durable finance, and other financial products. It is based in India.

Need for merger

Survival
Competitive advantage Universal Banking

Financial Analysis of Merger

7

ICICI Bank

Pre merger(2001- Post merger(200202) Rs. In Crore 03) Rs. In Crore

INCOME EXPENDITURE PROFIT

2762.27 2503.97 258.30

12533.38 11327.20 1206.18

Financial Analysis of Merger

8

Sr. No.

Ratios

Pre merger post merger Change(Inc rease or Decrease) 0.91 0.103 0.90 0.106 No change Increase slightly Increase

1 2

Cost to income ratio Net profit to total exp. ratio Operating exp to net profit ratio Net interest ratio

0.41

0.60

0.72

0.85

Increase

Advantages of the merger

Economies of scale through volumes in Operating costs Technology deployment Economies of scope Large product suite Cross-selling potential Optimization of human capital Optimization of financial capital

Conclusion

The merger had also resulted in integration of the retail finance operations of ICICI Ltd., its two merging subsidiaries and ICICI Bank into one entity creating an

optimal structure for the retail business and allowing the

full range of asset and liability products to be offered to all retail customers.

Thank You