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A Project Study Report On A Study on Customer Satisfaction in Indian Retail Banking With Special Reference to

ICICI BANK
Submitted in partial fulfillment for the Award of degree of

MASTER OF BUSINESS ADMINISTRATION

Submitted by Ashish Kumar Goyal MBA Part II (4th sem.) (2010-2011)

Submitted to Dr. Alka Jain (Asst. Professor)

SUBODH INSTITUTE OF MANAGEMENT & CAREER STUDIES BR Shah MBA Block, Rambagh Circle, Jaipur- 302004

CERTIFICATE OF FACULTY GUIDE


This is to certify that the Project entitled A Study on Customer

Satisfaction in Indian Retail Banking in Jaipur City (conducted during


the Project Study Undertaken at ICICI Bank, Jaipur) submitted in partial fulfillment for the award of degree of MASTER OF BUSINESS ADMINISTRATION to Subodh Institute of Management & Career Studies (SIMCS), Jaipur is a record of bonafide research work carried out by Ashish Kumar Goyal under my supervision and guidance.

Date Place..

Dr. Alka Jain (Asst. Professor)

Student Declaration
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I hereby declare that this Project Study Report entitled A Study on Customer Satisfaction in Indian Retail Banking With Special Reference of ICICI Bank Jaipur submitted in partial fulfillment of requirement of Master of Business Administration (MBA) to the Subodh Institute of Management & Career Studies (SIMCS), Jaipur is based on primary and secondary data founded by me in various department, books, magazines and websites.

Place:- Jaipur Date:..

Ashish Kumar Goyal

PREFACE
MBA is the one of the most reputed professional coures in the field of Management.It include theory as well as its practical knowledge. Project Study is an integral part of MBA programe, as through this students acquire knowledge of real happenings of the surroundings. So in Fourth semester each student at Subodh Institute of Management & Career Studies (SIMCS), Jaipur need to submit a Project Study report.
Someone has greatly said that practical knowledge is far better than classroom teaching. During this project I have fully realized this and come to know about the level of satisfaction of retail banking customers and the factors of customer satisfaction in retail banks. The Subject of my study was A Study On Customer Satisfaction In Indian Retail Banking With Special Reference Of ICICI Bank.. Customer Satisfaction is one of the most significant factors for the profitability of retail banking in India. The Report consists of all the necessary information that relates to effective recommendations that are made to the bank for increasing their customer satisfaction level.

ACKNOWLEGDEMENT
Expression of feelings by words makes them less significant when it comes to make statement of gratitude With regard to my Project with ICICI Bank, Jaipur, I would like to thank each and every one who offered help, guidelines and support whenever required. I express my sincere thanks to my project guide Dr Alka Jain, for guiding me right from the inception till the successful completion of the project. I sincerely acknowledge her for extending her valuable guidance, support for literature, critical reviews of project and the report and above all the moral support she had provided to me with all stages of this project. Last, but not the least, my heartfelt love for my parents and my friends, whose constant support and blessings kept me enthusiastic throughout this project.

Ashish Kumar Goyal

EXECUTIVE SUMMARY
The banking industry like many other financial services industries is facing a rapidly changing market, new technologies, economic uncertainties, fierce competition and more demanding customers ; and the changing climate has presented an unprecedented set of challenges. In the current circumstances a questions arises whether the customers are satisfied or not and what are the elements of retail banking which lead to the satisfaction or dissatisfaction of customers. The knowledge of current levels of satisfaction and , in particular, the primary factors of satisfaction are beneficial to those in the industry, thereby allowing them to focus and further strengthen the key areas that lead to highly satisfied customers . this research postulates on the present levels of satisfaction , and also tries to explore the factors that lead to customer satisfaction in retail banking in India .data from 25 survey respondents were collected from one branch of one of the prominent retail bank (ICICI Bank) in the Jaipur. The findings revealed that customer satisfaction, a transaction specific attribute are dependent on several factors, which concur with extensive academic literature. Though private banking evolved in late 80s in Asia, in India its not more than 5 years old. ICICI started it in Aug 2002 and since then it has been a remarkable success. Today there are enormous solutions to cater client needs but what suits best to a client is where private banking fits in. Every client will have different needs, liking and preferences. So a customized portfolio for every client is the need of the day. This research will highlight more on the product portfolio of ICICI Private Banking, how they have changed or innovatively structured to be attractive and competitive.

CHAPTER
CHAPTER-1

TABLE OF CONTENTS

PAGE NO.
8-40 9-15 16-17 18-26 27-30 31-40 41-79 42-52 53-60 61-79 80-88 81-84 85-88 89-93 94-97 95 95 96 96 97 97 98-99 100-114 115-119 120-121 122-123 124-126 127-128

INTRODUCTION OF THE INDUSTRY Introduction to Indian Banking Industry Introduction to Banking Banking System in India Role of Banks Products & Services offered by Banks INTRODUCTION TO CHAPTER-2 ORGANIZATION Introduction of ICICI Bank Key subsidiaries of ICICI Bank Products & Services Offered By ICICI Bank INTRODUCTION TO PROJECT CHAPTER-3 TOPIC Introduction of Customer Satisfaction Objective of Customer Satisfaction LITREATURE REVIEW CHAPTER-4 RESEARCH METHODOLOGY CHAPTER-5 Title of the Study Objective of the Study Type of Research Data Collection & Sample Design Scope of the study Limitation of the project FACTS & FINDINGS CHAPTER-6 DATA ANALYSIS & CHAPTER-7 INTERPRETATION SWOT ANALYSIS OF ICICI BANK CHAPTER-8 CONCLUSION CHAPTER-9 RECOMMENDATIONS & CHAPTER-10 SUGGESTIONS CHAPTER-11 ANNEXURE CHAPTER-12 BIBLIOGRAPHY

CHARTS

Chart-1 Customer have Account with ICICI Bank Chart-2 Attributes compelled by the customers to open saving account in any bank Chart-3 Customers having Bank Account With ICICI Bank From how many years Chart-4 Reason for preference of ICICI Bank Chart-5 Medium for customer awareness about the services provided by ICICI Bank Chart-6 Thinking of the people about the Banks Chart-7 Suitability of processing of loan for the customers Chart-8 Opinion of the customers about the processing charges of loan Chart-9 Type of loan Preferred by the customers of ICICI Bank Chart-10 Customers Opinion about the interest rate charged on loan by the ICICI bank Chart-11 Internet banking availed by the customers of ICICI Bank Chart-12 Reasons for not using Internet banking Service by the customers Chart-13 Customer opinion towards the financial services provided by the ICICI Bank

Chart-14 Level of Customer satisfaction towards the services provided by ICICI Bank

CHAPTER 1

INTRODUCTION OF INDIAN BANKING INDUSTRY


Banking in India originated in the first decade of 18th century with The General Bank of India coming into existence in 1786. This was followed by Bank of Hindustan. Both these banks are now defunct. The oldest bank in existence in India is the State Bank of India being established as "The Bank of Bengal" in Calcutta in June 1806. A couple of decades later, foreign banks started their Calcutta operations in the 1850s. At that point of time, Calcutta was the most active trading port, mainly due to the trade of the British Empire, and due to which banking activity took roots there and prospered. The first fully Indian owned bank was the Allahabad Bank, which was established in 1865. By the 1900s, the market expanded with the establishment of banks such as Punjab National Bank, in 1895 in Lahore and Bank of India, in 1906, in Mumbai - both of which were founded under private ownership. The Reserve Bank of India formally took on the responsibility of regulating the Indian banking sector from 1935. After India's independence in 1947, the Reserve Bank was nationalized and given broader powers. At the end of late-18th century, there were hardly any bank in India in the modern sense of the term. At the time of the American Civil War, a void was created as the supply of cotton to Lancashire stopped from the Americas. Some banks were opened at that time which functioned as entities to finance industry, including speculative trades in cotton. With large exposure to speculative ventures, most of the banks opened in India during that period could not survive and failed. The depositors lost money and lost interest in keeping deposits with banks. Subsequently, banking in India remained the exclusive domain of Europeans for next several decades until the beginning of the 20th century. The Bank of Bengal, which later became the State Bank of India.

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RESERVE BANK OF INDIA Central Bank and supreme monetary authority Scheduled Banks Coopera tive
Urban Cooperatives State Cooperatives Public Sector

Commer cial
Private Sector

Non Scheduled Banks

Foreign Banks

Other Nationalized Banks

SBI & Associates

Regional Rural Banks

History Of Banking In India


Without a sound and effective banking system in India it cannot have a healthy economy. The banking system of India should not only be hassle free but it should be able to meet new challenges posed by the technology and any other external and internal factors. For the past three decades India's banking system has several outstanding achievements to its credit. The most striking is its extensive reach. It is no longer confined to only metropolitans or cosmopolitans in India. In fact, Indian banking system has reached even to the remote corners of the country. This is one of the main reason of India's growth process. The government's regular policy for Indian bank since 1969 has paid rich dividends with the nationalization of 14 major private banks of India. Not long ago, an account holder had to wait for hours at the bank counters for getting a draft or for withdrawing his own money. Today, he has a choice. Gone are days when the most efficient

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bank transferred money from one branch to other in two days. Now it is simple as instant messaging or dial a pizza. Money has become the order of the day. The first bank in India, though conservative, was established in 1786. From 1786 till today, the journey of Indian Banking System can be segregated into three distinct phases. They are as mentioned below: Early phase from 1786 to 1969 of Indian Banks Nationalization of Indian Banks and up to 1991 prior to Indian banking sector Reforms. New phase of Indian Banking System with the advent of Indian Financial & Banking Sector Reforms after 1991. The first bank in India, though conservative, was established in 1786. From 1786 till today, the journey of Indian Banking System can be segregated into three distinct phases. They are as mentioned below:

PHASE I

- Early phase from 1786 to 1969 of Indian Banks

PHASE II - Nationalization of Indian Banks and up to 1991 PHASE III - Indian Financial & Banking Sector Reforms after 1991.

PHASE I: The General Bank of India was set up in the year 1786. Next came Bank of Hindustan and Bengal Bank. The East India Company established Bank of Bengal (1809), Bank of Bombay (1840) and Bank of Madras (1843) as independent units and called it Presidency Banks. These three banks were amalgamated in 1920 and Imperial Bank of India was established which started as private shareholders banks, mostly Europeans shareholders. During the first phase the growth was very slow and banks also experienced periodic failures between 1913 and 1948. There were approximately 1100 banks, mostly small. To streamline the functioning and activities of commercial banks, the Government of India came up with The Banking Companies Act, 1949 which was later changed to Banking Regulation Act 1949 as per amending Act of 1965 (Act No. 23 of 1965). Reserve Bank of India was vested with extensive powers for the supervision of banking in India as the Central Banking Authority. During those days public has lesser confidence in the banks. As an aftermath deposit mobilization was slow. Abreast of it the savings bank facility provided by the Postal department was comparatively safer. Moreover, funds were largely given to the traders.

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PHASE II: Government took major steps in this Indian Banking Sector Reform after independence. In 1955, it nationalized Imperial Bank of India with extensive banking facilities on a large scale especially in rural and semi-urban areas. Second phase of nationalization Indian Banking Sector Reform was carried out in 1980 with seven more banks. This step brought 80% of the banking segment in India under Government ownership. The following are the steps taken by the Government of India to Regulate Banking Institutions in the Country:

1949: Enactment of Banking Regulation Act. 1955: Nationalization of State Bank of India. 1959: Nationalization of SBI subsidiaries. 1961: Insurance cover extended to deposits. 1969: Nationalization of 14 major banks. 1971: Creation of credit guarantee corporation. 1975: Creation of regional rural banks. 1980: Nationalization of seven banks with deposits over 200 crore.

After the nationalization of banks, the branches of the public sector bank India raised to approximately 800% in deposits and advances took a huge jump by 11,000%.Banking in the sunshine of Government ownership gave the public implicit faith and immense confidence about the sustainability of these institutions. PHASE III This phase has introduced many more products and facilities in the banking sector in its reforms measure. In 1991, under the chairmanship of M Narasimham, a committee was set up by his name which worked for the liberalization of banking practices. The country is flooded with foreign banks and their ATM stations. Efforts are being put to give a satisfactory service to customers. Phone banking and net banking is introduced. The entire system became more convenient and swift. The financial system of India has shown a great deal of resilience. It is sheltered from any crisis triggered by any external macroeconomics shock as other East Asian Countries suffered. This is all due to a flexible exchange rate regime, the foreign reserves are high, the capital account is not yet fully convertible, and banks and their customers have limited foreign exchange exposure.

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HISTORY OF BANKING
The period during the First World War (1914-1918) through the end of the Second World War (1939-1945), and two years thereafter until the independence of India were challenging for the Indian banking. The years of the First World War were turbulent, and it took toll of many banks which simply collapsed despite the Indian economy gaining indirect boost due to war-related economic activities. At least 94 banks in India failed during the years 1913 to 1918 as indicated in the following table: Number of banks Authorized capital Paid-up Capital that failed 12 42 11 13 9 7 (Rs. Lakes) 274 710 56 231 76 209 (Rs. Lakes) 35 109 5 4 25 1

Years

POST-

1913 1914 1915 1916 1917 1918

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

1. In 1948, the Reserve Bank of India, India's central banking authority, was nationalized, and
it became an institution owned by the Government of India.

2. In 1949, the Banking Regulation Act was enacted which empowered the Reserve Bank of
India (RBI) "to regulate, control, and inspect the banks in India."

3. The Banking Regulation Act also provided that no new bank or branch of an existing bank
may be opened without a license from the RBI, and no two banks could have common directors.

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

NATIONALISATION
By the 1960s, the Indian banking industry has become an important tool to facilitate the development of the Indian economy. At the same time, it has emerged as a large employer, and a debate has ensued about the possibility to nationalize the banking industry. Indira Gandhi, the-then Prime Minister of India expressed the intention of the GOI in the annual conference of the All India Congress Meeting in a paper entitled "Stray thoughts on Bank Nationalization." The paper was received with positive enthusiasm. Thereafter, her move was swift and sudden, and the GOI issued an ordinance and nationalized the 14 largest commercial banks with effect from the midnight of July 19, 1969. Jayaprakash Narayan, a national leader of India, described the step as a "masterstroke of political sagacity." Within two weeks of the issue of the ordinance, the Parliament passed the Banking Companies (Actuation and Transfer of Undertaking) Bill, and it received the presidential approval on 9th August, 1969. A second dose of nationalization of 6 more commercial banks followed in 1980. The stated reason for the nationalization was to give the government more control of credit delivery. With the second dose of nationalization, the GOI controlled around 91% of the banking business of India. After this, until the 1990s, the nationalized banks grew at a pace of around 4%, closer to the average growth rate of the Indian economy. 1955 : Nationalisation of State Bank of India. 1959 : Nationalisation of SBI subsidiaries. 1969 : Nationalisation of 14 major banks. 1980 : Nationalisation of seven banks with deposits over 200 crores.

LIBERALISATION
In the early 1990s the then NarasimhaRao government embarked on a policy of liberalization and gave licenses to a small number of private banks, which came to be known as New

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Generation tech-savvy banks, which included banks such as UTI Bank(now re-named as Axis Bank) (the first of such new generation banks to be set up), ICICI Bank and HDFC Bank. This move, along with the rapid growth in the economy of India, kick started the banking sector in India, which has seen rapid growth with strong contribution from all the three sectors of banks, namely, government banks, private banks and foreign banks. The next stage for the Indian banking has been setup with the proposed relaxation in the norms for Foreign Direct Investment, where all Foreign Investors in banks may be given voting rights which could exceed the present cap of 10%, at present it has gone up to 49% with some restrictions. The new policy shook the Banking sector in India completely. Bankers, till this time, were used to the 4-6-4 method (Borrow at 4%; Lend at 6%; Go home at 4) of functioning. The new wave ushered in a modern outlook and tech-savvy methods of working for traditional banks. All this led to the retail boom in India. People not just demanded more from their banks but also received more.

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INTRODUCTION OF BANKING
MEANING AND DEFINITION:
Bank is an institution that deals in money and its substitutes and provides crucial financial services. The principal type of baking in the modern industrial world is commercial banking & central banking. Banking Means "Accepting Deposits for the purpose of lending or Investment of deposits of money from the public, repayable on demand or otherwise and withdraw by cheque, draft or otherwise." -Banking Companies (Regulation) Act,1949 The concise oxford dictionary has defined a bank as "Establishment for custody of money which it pays out on customers order." In fact this is the function which the bank performed when banking originated. "Banking in the most general sense, is meant the business of receiving, conserving & utilizing the funds of community or of any special section of it." -By H. Wills & J. Bogan "A banker of bank is a person, a firm, or a company having a place of business where credits are opened by deposits or collection of money or currency or where money is advanced and waned. -By Findlay Sheras Thus, A Bank : Accept deposits of money from public, Pays interest on money deposited with it. Lends or invests money Repays the amount on demand, Allow the money deposited to be withdrawn by cheque or draft.

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Banks have played a pivotal role in the process of development of the district over the years, especially after the formation of the district in 1993. Apart from dispensing credit, the Banks have also brought about social changes. The contribution of the banking sector in the field of overall development of the district is elaborated in the following paragraphs. At the beginning of the 20th century, Indian economy was passing through a relative period of stability. Around five decades have elapsed since the India's First war of Independence, and the social, industrial and other infrastructure have developed. At that time there were very small banks operated by Indians, and most of them were owned and operated by particular communities. The banking in India was controlled and dominated by the presidency banks, namely, the Bank of Bombay, the Bank of Bengal, and the Bank of Madras - which later on merged to form the Imperial Bank of India, and Imperial Bank of India, upon India's independence, was renamed the State Bank of India. There were also some exchange banks, as also a number of Indian joint stock banks. All these banks operated in different segments of the economy. The presidency banks were like the central banks and discharged most of the functions of central banks. They were established under charters from the British East India Company. The exchange banks, mostly owned by the Europeans, concentrated on financing of foreign trade. Indian joint stock banks were generally undercapitalized and lacked the experience and maturity to compete with the presidency banks, and the exchange banks. There was potential for many new banks as the economy was growing. Lord Carson had observed then in the context of Indian banking: "In respect of banking it seems we are behind the times. We are like some old fashioned sailing ship, divided by solid wooden bulkheads into separate and cumbersome compartments. Under these circumstances, many Indians came forward to set up banks, and many banks were set up at that time, a number of which have survived to the present such as Bank of India and Corporation Bank, Indian Bank, Bank of Baroda, and Canara Bank. Indian banking sector can be divided mainly into four broad categories namely public sector Banks, old private sector banks, new private sector banks, and foreign banks. The other categories of banks include co-operative banks and regional rural banks. Since these banks dont form a substantial chunk of the banking system, we will focus on the first four categories.

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BANKING SYSTEM IN INDIA

BANKS IN INDIA

CENTRAL BANK

NATIONALISED BANK BANKS

PRIVATE BANKS

FOREIGN BANKS

CENTRAL BANK:

RESERVE BANK OF INDIA

NATIONALISED BANK IN INDIA


The Banking System in India is dominated by nationalized banks. The Nationalization of Banks in India took place in 1969 by Mrs. Indira Gandhi the then Prime Minister. The major objective Behind Nationalization Banks was to spread banking Infrastructure in Rural areas and make available cheap finance to Indian farmers. Fourteen banks were nationalized in 1969. These Banks were

State Bank of India Allahabad Bank Andhra Bank Bank of Baroda Bank of India Bank of Maharashtra Canara Bank 19

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

Axis Bank Bharat Overseas Bank Catholic Syrian Bank Centurion Bank of Punjab City Union Bank Development Credit Bank Dhanalakshmi Bank Federal Bank Ganesh Bank of Kurundwad HDFC Bank 20

ICICI Bank IDBI Bank IndusInd Bank ING Vysya Bank Jammu & Kashmir Bank Karnataka Bank Limited Karur Vysya Bank Kotak Mahindra Bank Lakshmi Vilas Bank Lord Krishna Bank Nainital Bank Ratnakar Bank SBI Commercial and International Bank FOREIGN BANKS IN INDIA
Foreign Banks are likely to succeed in their niche markets and be the innovators in terms of technology introduction in the domestic scenario. The outlook for the private sector banks indeed looks to be more promising vis--vis other banks. While their focused operations lower but more productive employee force etc will stand them good, possible acquisitions of PSU banks will definitely give them the much needed scale of operations and access to lower cost of funds.

Standard charted Bank Deutsche Bank Bank of America Citi Bank ABN Amro Bank HSBC Bank

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FUNCTIONS OF BANKS
PRIMARY FUNCTIONS
Acceptance of Deposits Making loans & advances Loans Overdraft Cash Credit Discounting of bills of exchange

SECONDARY FUNCTIONS
Agency functions Collection of cheques & Bills etc. Collection of interest and dividends. Making payment on behalf of customers Purchase & sale of securities Facility of transfer of funds To act as trustee & executor.

UTILITY FUNCTIONS :
Safe custody of customers valuable articles & securities. Underwriting facility

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Issuing of travelers cheque letter of credit Facility of foreign exchanges Providing trade information Provide information regarding credit worthiness of their customer.

CLASSIFICATION OF BANKS
CLASSIFICATION ON BASIS OF OWNERSHIP
On the basis of ownership banks are of the following types :

1.

PUBLIC SECTOR BANK


Public sector banks are those banks which are owned by the Government. The Govt. runs these Banks. In India 14 banks were nationalized in 1969 & in 1980 another 6 banks were also nationalized. Therefor in 1980 the number of nationalized bank 20. But at present there are 9 banks are nationalized. All these banks are belonging to public sector category. Welfare is their principle objective.

2.

PRIVATE SECTOR BANKS


These banks are owned and run by the private sector. Various banks in the country such as ICICI Bank, HDFC Bank etc. An individual has control over their banks in preparation to the share of the banks held by him.

3.

CO-OPERATIVE BANKS
Co-operative banks are those financial institutions. They provide short term & medium term loans to their members. Co-operative banks are in every state in India. Its branches at district level are known as the central co-operative bank. The central co-operative bank in turn has its branches both in the urban & rural areas. Every state co-operative bank is an apex bank which provides credit facilities to the central co-operative bank. It

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mobilized financial resources from richer section of urban population by accepting deposit and creating the credit like commercial bank and borrowing from the money mkt. It also gets funds from RBI.

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ACCORDING TO RESERVE BANK OF INDIA ACT 1935


Banks are classified into following two categories son the basis of reserve bank Act 1934.

1.

SCHEDULED BANK
These banks have paid up capital of at least Rs. 5 lacks. These are like a joint stock company. It is a co-operative organization. These banks find their mention in the second schedule of the reserve bank.

2.

NON SCHEDULED BANK


These banks are not mentioned in the second schedule of reserve bank paid up capital of these banks is less then Rs.5 lacs. The no. such bank is gradually tolling in India.

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CLASSIFICATION ACCORDING TO FUNCTION


On the basis of functions banks are classified as under :-

1.

COMMERCIAL BANKS
The commercial banks generally extend short-term loans to businessmen & traders. Since their deposits are for a short-period only. They cannot lend money for a long period. These banks reform various types or agency job for their customers. These banks are not in a position to grant long-term loans to industries because their deposits are only for a short period. The majority of joint stock banks in India are commercial banks which finance trade & commerce only.

2.

SAVING BANKS
The principle function of these banks is to collect small saving across the country and put them into productive use. These banks have shown marked development in

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Germany & Japan. These banks are established in HAMBURG City of Germany in 1765. In India a department of post offices functions as a saving banks. 3.

FOREIGN EXCHANGE BANKS


These are special types of banks which specialize in financing foreign trade. Their main function is to make international payments through purchase & sale of exchange bills. As it well known, the exporters of a country prefer to receive the payments for exports in their own currency. Thus these banks convert home currency into foreign currency and vice versa. It is on this account that these banks have to keep with themselves stock of the currency of various countries. Along with that, they have to open branches in foreign countries to carry on their business.

4.

INDUSTIRAL BANKS
The industrial banks extends long term loans to industries. In fact, they also help industrials firms to sell their debentures and shares. Sometimes, they even underwrite the debentures & shares of big industrial concerns.

5.

INDIGENIOUS BANKS
These banks found their origin in India. These banks made a significant contribution to the development of agricultural and industries before independence. Mahajans, rural moneylenders have been the forerunner of these banks in India.

6.

CENTRAL BANK
The central bank occupies a pivotal position in the monetary and banking structure of the country. The central bank is the undisputed leader of the money market. As such it supervises controls and regulates the activities of commercial banks affiliated with it. The central bank is also the higher monetary institution in the country charged with the duty & responsibility of carrying out the monetary policy formulated by the government. India's central bank known as the reserve bank of India was set up in 1935.

7.

AGRICULTURAL BANK

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The commercial and the industrial banks are not in a position to meet the credit requirements of agriculture. Hence, there arises the need for setting up special type of banks of finance agriculture. The credit requirements of the farmers are two types. Firstly the farmers require short term loans to buy seeds, fertilizers, ploughs and other inputs. Secondly, the farmers require long-term loans to purchase land, to effect permanent improvements on the land to buy equipment and to provide for irrigation works. There are two types of agriculture banks. 1. Agriculture co-operative banks, and 2. Land mortgage banks. The farmer provide short-term credit, while the letter extend long-term loans to the farmer

MAJOR PLAYERS OF BANKING SECTOR


PRIVATE BANK IN INDIA

PUBLIC BANKS IN INDIA

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FOREIGN BANKS IN INDIA

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Role of Banks:
Banks play a positive role in economic development of a country as repositories of communitys savings and as purveyors of credit. Indian Banking has aided the economic development during the last fifty years in an effective way. The banking sector has shown a remarkable responsiveness to the needs of planned economy. It has brought about a considerable progress in its efforts at deposit mobilization and has taken a number of measures in the recent past for accelerating the rate of growth of deposits. As recourse to this, the commercial banks opened branches in urban, semi-urban and rural areas and have introduced a number of attractive schemes to foster economic development. The activities of commercial banking have growth in multi-directional ways as well as multi-dimensional manner. Banks have been playing a catalytic role in area development, backward area development, extended assistance to rural development all along helping agriculture, industry, international trade in a significant manner. In a way, commercial banks have emerged as key financial agencies for rapid economic development. By pooling the savings together, banks can make available funds to specialized institutions which finance different sectors of the economy, needing capital for various purposes, risks and durations. By contributing to government securities, bonds and debentures of termlending institutions in the fields of agriculture, industries and now housing, banks are also

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providing these institutions with an access to the common pool of savings mobilized by them, to that extent relieving them of the responsibility of directly approaching the saver. This intermediation role of banks is particularly important in the early stages of economic development and financial specification. A country like India, with different regions at different stages of development, presents an interesting spectrum of the evolving role of banks, in the matter of inter-mediation and beyond. Mobilization of resources forms an integral part of the development process in India. In this process of mobilization, banks are at a great advantage, chiefly because of their network of branches in the country. And banks have to place considerable reliance on the mobilization of deposits from the public to finance development programmes. Further, deposit mobalization by banks in India acquired greater significance in their new role in economic development. Commercial banks provide short-term and medium-term financial assistance. The short-term credit facilities are granted for working capital requirements. The medium-term loans are for the acquisition of land, construction of factory premises and purchase of machinery and equipment. These loans are generally granted for periods ranging from five to seven years. They also establish letters of credit on behalf of their clients favoring suppliers of raw materials/machinery (both Indian and foreign) which extend the bankers assurance for payment and thus help their delivery. Certain transaction, particularly those in contracts of sale of Government Departments, may require guarantees being issued in lieu of security earnest money deposits for release of advance money, supply of raw materials for processing, full payment of bills on the assurance of the performance etc. Commercial banks issue such guarantees also.

The Role of Reserve Bank of India (RBI) Bankers Bank:


The Reserve Bank of India (RBI) is the central bank of India, and was established on April 1, 1935 in accordance with the provisions of the Reserve Bank of India Act, 1934. Since its inception, it has been headquartered in Mumbai. Though originally privately owned, RBI has been fully owned by the Government of India since nationalization in 1949. RBI is governed by a central board (headed by a Governor) appointed by the Central Government. The current governor of RBI is Dr.Y.Venugopal Reddy (who succeeded Dr. Vimal Jalan on September 6, 2003). RBI has 22 regional offices across India. The Reserve

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Bank of India was set up on the recommendations of the Hilton Young Commission. The commission submitted its report in the year 1926, though the bank was not set up for nine years.

Main Objective:
Monetary Authority

Formulates, implements and monitors the monetary policy. Objective: maintaining price stability and ensuring adequate flow of credit to productive sectors.

Regulator and supervisor of the financial system


Prescribes broad parameters of banking operations within which the countrys banking and financial system functions. Objective: maintain public confidence in the system, protect depositors interest and provide cost-effective banking services to the public. The Banking Ombudsman Scheme has been formulated by the Reserve Bank of India (RBI) for effective redressal of complaints by bank customers

Manager of Exchange Control


Manages the Foreign Exchange Management Act, 1999. Objective: to facilitate external trade and payment and promote orderly development and maintenance of foreign exchange market in India.

Issuer of currency

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

Developmental role

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

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Related Functions

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

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

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

Promotional Functions:
With economic growth assuming a new urgency since Independence, the range of the Reserve Banks functions have steadily widened. The Bank now performs a variety of developmental and promotional functions, which, at one time, were regarded as outside the

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

PRODUCTS AND SERVICES OFFERED BY BANKS


Broad Classification of Products in a bank:
The different products in a bank can be broadly classified into: Retail Banking. Trade Finance. Treasury Operations.

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

Retail Banking:
Deposits Loans, Cash Credit and Overdraft Negotiating for Loans and advances

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Remittances Book-Keeping (maintaining all accounting records) Receiving all kinds of bonds valuable for safe keeping

Trade Finance:
Issuing and confirming of letter of credit. Drawing, accepting, discounting, buying, selling, collecting of bills of exchange, promissory notes, drafts, bill of lading and other securities.

Treasury Operations:
Buying and selling of bullion. Foreign exchange Acquiring, holding, underwriting and dealing in shares, debentures, etc. Purchasing and selling of bonds and securities on behalf of constituents. The banks can also act as an agent of the Government or local authority. They insure, guarantee, underwrite, participate in managing and carrying out issue of shares, debentures, etc. Apart from the above-mentioned functions of the bank, the bank provides a whole lot of other services like investment counseling for individuals, short-term funds management and portfolio management for individuals and companies. It undertakes the inward and outward remittances with reference to foreign exchange and collection of varied types for the Government.

Common Banking Products Available: Some of common available banking products are explained below: 1) Credit Card: Credit Card is post paid or pay later card that draws from a credit
amount is not paid full by the end of the period, one is charged interest. line-

money made available by the card issuer (bank) and gives one a grace period to pay. If the

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A credit card is nothing but a very small card containing a means of identification, such as a signature and a small photo. It authorizes the holder to change goods or services to his account, on which he is billed. The bank receives the bills from the merchants and pays on behalf of the card holder. These bills are assembled in the bank and the amount is paid to the bank by the card holder totally or by installments. The bank charges the customer a small amount for these services. The card holder need not have to carry money/cash with him when he travels or goes for purchasing. Credit cards have found wide spread acceptance in the metros and big cities. Credit cards are joining popularity for online payments. The major players in the Credit Card market are the foreign banks and some big public sector banks like SBI and Bank of Baroda. India at present has about 3 million credit cards in circulation.

2) Debit Cards: Debit Card is a prepaid or pay now card with some stored value. Debit
Cards quickly debit or subtract money from ones savings account,or if one were taking out cash. Every time a person uses the card, the merchant who in turn can get the money transferred to his account from the bank of the buyers, by debiting an exact amount of purchase from the card. To get a debit card along with a Personal Identification Number (PIN). When he makes a purchase, he enters this number on the shops PIN pad. When the card is swiped through the electronic terminal, it dials the acquiring bank system either Master Card or Visa that validates the PIN and finds out from the issuing bank whether to accept or decline the transaction. The customer never overspread because the amount spent is debited immediately from the customers account. So, for the debit card to work, one must already have the money in the account to cover the transaction. There is no grace period for a debit card purchase. Some debit cards have monthly or per transaction fees. Debit Card holder need not carry a bulky checkbook or large sums of cash when he/she goes at for shopping. This is a fast and easy way of payment one can get debit card facility as debit cards use ones own money at the time of sale, so they are often easier than credit cards to obtain.

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The major limitation of Debit Card is that currently only some 3000-4000 shops country wide accepts it. Also, a person cant operate it in case the telephone lines are down.

3) Automatic Teller Machine: The introduction of ATMs has given the customers the facility
of round the clock banking. The ATMs are used by banks for making the customers dealing easier. ATM card is a device that allows customer who has an ATM card to perform routine banking transaction at any time without interacting with human teller. It provides exchange services. This service helps the customer to withdraw money even when the banks ate closed. This can be done by inserting the card in the ATM and entering the Personal Identification Number and secret Password. ATMs are currently becoming popular in India that enables the customer to withdraw their money 24 hours a day and 365 days. It provides the customers with the ability to withdraw or deposit funds, check account balances, transfer funds and check statement information. The advantages of ATMs are many. It increases existing business and generates new business. It allows the customers. To transfer money to and from accounts. To view account information. To order cash. To receive cash.

Advantages of ATMs: To the Customers


ATMs provide 24 hrs. 7 days and 365 days a year service. Service is quick and efficient Privacy in transaction Wider flexibility in place and time of withdrawals. The transaction is completely secure you need to key in Personal Identification Number (Unique number for every customer).

To Banks 35

Alternative to extend banking hours. Crowding at bank counters considerably reduced. Alternative to new branches and to reduce operating expenses. Relieves bank employees to focus an more analytical and innovative work. Increased market penetration. ATMs can be installed anywhere like Airports, Railway Stations, Petrol Pumps, Big

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

4) E-Cheaques: The e-cheaques consists five primary facts. They are the consumers, the
merchant, consumers bank the merchants bank and the e-mint and the clearing process. This cheaquring system uses the network services to issue and process payment that emulates real world chaquing. The payer issues a digital cheaques to the payee ant the entire transactions are done through internet. Electronic version of cheaques are issued, received and processed. A typical electronic cheque transaction takes place in the following manner: The customer accesses the merchant server and the merchant server presents its goods to the customer. The consumer selects the goods and purchases them by sending an e-cheque to the merchant. The merchant validates the e-cheque with its bank for payment authorization. The merchant electronically forwards the e-cheque to its bank. The merchants bank forwards the e-cheque to the clearing house for cashing. The clearing house jointly works with the consumers bank clears the cheque and transfers the money to the merchants banks.

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The merchants bank updates the merchants account. The consumers bank updates the consumers account with the withdrawal information. The e-chequing is a great boon to big corporate as well as small retailers. Most major

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

5)

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

These are the computer centers that handle the bills meant for deposits and the bills meant for payment. In big companies pay is not disbursed by issued cheques or issuing cash. The payment office directs the computer to credit an employees account with the persons pay.

6)

Telebanking: Telebanking refers to banking on phone services..a customer can


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

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

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And other similar services.

7)

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


mobile banking. On-line banking is now moving to the mobile world, giving everybody with a mobile phone access to real-time banking services, regardless of their location. But there is much more to mobile banking from just on-lie banking. It provides a new way to pick up information and interact with the banks to carry out the relevant banking business. The potential of mobile banking is limitless and is expected to be a big success. Booking and paying for travel and even tickets is also expected to be a growth area. According to this system, customer can access account details on mobile using

the Short Messaging System (SMS) technology6 where select data is pushed to the mobile device. The wireless application protocol (WAP) technology, which will allow user to surf the net on their mobiles to access anything and everything. This is a very flexible way of transacting banking business. Already ICICI and HDFC banks have tied up cellular service provides such as Airtel, Orange, Sky Cell, etc. in Delhi and Mumbai to offer these mobile banking services to their customers.

8)

Internet Banking: Internet banking involves use of internet for delivery of banking
products and services. With internet banking is now no longer confirmed to the branches where one has to approach the branch in person, to withdraw cash or deposits a cheque or request a statement of accounts. In internet banking, any inquiry or transaction is processed online without any reference to the branch (anywhere banking) at any time. The Internet Banking now is more of a normal rather than an exception due to the fact

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

Benefits of Internet Banking:

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

Financial Transaction on the Internet:


Electronic Cash: Companies are developing electronic replicas of all existing payment system: cash, cheque, credit cards and coins. Automatic Payments: Utility companies, loans payments, and other businesses use on automatic payment system with bills paid through direct withdrawal from a bank account. Direct Deposits: Earnings (or Government payments) automatically deposited into bank accounts, saving time, effort and money. Stored Value Cards: Prepaid cards for telephone service, transit fares, highway tolls, laundry service, library fees and school lunches. Point of Sale transactions: Acceptance of ATM/Cheque at retail stores and restaurants for payment of goods and services. This system has made functioning of the stock Market very smooth and efficient. Cyber Banking: It refers to banking through online services. Banks with web site Cyber branches allowed customers to check balances, pay bills, transfer funds, and apply for loans on the Internet.

9)

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


where at the customers request the physical stock is converted into electronic entries in the depository system.

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In January 1998 SEBI (Securities and Exchange Board of India) initiated DEMAT ACCOUNTANCY System to regulate and to improve stock investing. As on date, to trade on shares it has become compulsory to have a share Demat account and all trades take place through Demat.

How to Operate DEMAT ACCOUNT?


One needs to open a Demat Account with any of the branches of the bank. After opening an account with any bank, by filling the Demat request form one can handover the securities. The rest will be taken care by the bank and the customer will receive credit of shares as soon as it is confirmed by the Company/Register and Transfer Agent. There is no physical movement of share certification any more. Any buying or selling of shares is done via electronic transfers. 1) If the investor wants to sell his shares, he has to place an order with his broker and give a Delivery Instruction to his DP (Depository Participant). The DP will debit hi s account with the number of shares sold by him. 2) If one wants to buy shares, he has to inform his broker about his Depository Account Number so that the shares bought by him are credited in to his account. 3) Payment for the electronic shares bought or sold is to be made in the same way as in the case of physical securities.

BANKING SERVICES
Banking covers so many services that it is difficult to define it. However, these basic services have always been recognized as the hallmark of the genuine banker. These are The receipt of the customers deposits The collection of his cheques drawn on other banks The payment of the customers cheques drawn on himself

There are other various types of banking services like:

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

Customer Services in Commercial Banks:


Customer service is the service provided in support of a banks core products. Customer service often includes answering questions; handling complaints. Customer service can occur on site (as when an onstage employee helps a customer or answers a question) or it can occur over the phone or the Internet. Quality customer service is essential to building cordial customer relationship. Banking being a service industry, a lot depends on efficient and prompt customer service. Customer service is the most important duty of the banking operations. Prompt and efficient service with smile will develop good public relations reduce complaints and increase business.

Why is Customer Service Important? Changing customer expectations: Today the customer is more demanding and more
sophisticated than he or she was thirty years ago.

The increased importance of customer service: With changing customer


expectations, competitors are seeing customer service as a competitive weapon with which they differentiate their products and services.

The need for a relationship strategy: To ensure that a customer service strategy that
will create a value preposition for customers should be formulated implemented and controlled. It is necessary to give it a central role and not one that is subsumed in the various elements of the marketing mix.

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The customer is the king pim in growth organizations like commercial banks. Only those institutions which work according to his dictates will flourish. Quality, Consistency and Durability at low price are the final expectations of a customer. Quality will have to be unambiguous, of world class quality. Quality cannot be of minimum acceptable standards. Customer responsiveness must be quick and also competent. Speed, performance and cost will be the new values mantra for success. The ten key areas of customers services to be attended timely and regularly are: i. ii. iii. iv. v. vi. vii. viii. Submission of statement of A/Cs to customers Updating of savings pass books. Teller system efficiency. Cleanliness and Upkeep of premises. Intermediate Credit for institution cheques/land bills. Advance intimation to customers for rewards of Term Deposits Receipts on maturity. Advance for Debit/credit to accounts. Punctuality of staff.

CHAPTER 2

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INTRODUCTION OF ICICI BANK

Type

Private, BSE & NSE, NYSE

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Founded

1955 (as Industrial credit and Investment corporation of India) ICICI Bank Ltd.,

Headquarters

ICICI Bank Towers, Bandra Kurla Mumbai, India N Vaghul, K.V. Kamath, Chanda Kochhar, V Vaidyanathan, Madhabi Puri Banking Insurance Capital Markets and allied industries

Key people

Industry

Products

Loans, Credit Cards, Savings, Investment vehicles, Insurance etc.

OVERVIEW
ICICI Bank (formerly Industrial Credit and Investment Corporation of India). ICICI Limited was established in 1955 by the World Bank, the Government of India and the Indian Industry, for the promotion of industrial development in India by giving project and corporate finance to the industries in India. ICICI Bank has grown from a development bank to a financial conglomerate and has become one of the largest public financial institutions in India. ICICI Bank has financed all the major sectors of the economy, covering 6,848 companies and 16,851 projects. ICICI Bank Fact Files:

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Network: 580 branches ATMs: Over 2000 Abroad Subsidiaries: United Kingdom and Canada Abroad branches: Singapore and Bahrain Representative offices: United States, China, United Arab Emirates, and Bangladesh and South Africa. ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialized subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital and asset management. ICICI Bank set up its international banking group in fiscal 2002 to cater to the cross border needs of clients and leverage on its domestic banking strengths to offer products internationally.

ICICI Bank (BSE: ICICI) (Industrial Credit and Investment Corporation of India) is India's largest private sector bank in market capitalization and second largest overall in terms of assets. Bank has total assets of about USD 100 billion (at the end of March 2008), a network of over 1,491 branches, 22 regional offices and 49 regional processing centers, about 4,485 ATMs (at the end of September 2008), and 24 million customers (at the end of July 2007). ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and specialized subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital and asset management. (These data are dynamic.) ICICI Bank is also the largest issuer of credit cards in India. ICICI Bank has got its equity shares listed on the stock exchanges at Kolkata and Vadodara, Mumbai and the National Stock Exchange of India Limited, and its ADRs on the New York Stock Exchange (NYSE). The Bank is expanding in overseas markets and has the largest international balance sheet among Indian banks. ICICI Bank now has wholly-owned subsidiaries, branches and representatives offices in 18 countries, including an offshore unit in Mumbai. This includes wholly owned subsidiaries in Canada, Russia and the UK (the subsidiary through which the hisave savings brand is operated), offshore banking units in Bahrain and Singapore, an advisory branch in Dubai, branches in Belgium, Hong Kong and Sri Lanka, and representative offices in

45

Bangladesh, China, Malaysia, Indonesia, South Africa, Thailand, the United Arab Emirates and USA. Overseas, the Bank is targeting the NRI (Non-Resident Indian) population in particular.

ICICI Bank currently has subsidiaries in the United Kingdom, Russia and Canada, branches in Singapore, Bahrain, Hong Kong, Sri Lanka and Dubai International Finance Center and representative offices in the United States, United Arab Emirates, China, South Africa and Bangladesh. Our UK subsidiary has established a branch in Belgium. ICICI Bank is the most valuable bank in India in terms of market capitalization. ICICI Bank's equity shares are listed in India on the Bombay Stock Exchange and the National Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE). ICICI Bank has formulated a Code of Business Conduct and Ethics for its Directors and employees. At June 5, 2006, ICICI Bank, with free float market capitalization of about Rs. 480.00 billion (US$ 10.8 billion) ranked third amongst all the companies listed on the Indian stock exchanges. ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial Institution, and was its wholly owned subsidiary. ICICI's shareholding in ICICI Bank was reduced to 46% through a public offering of shares in India in fiscal 1998, an equity offering in the form of ADRs listed on the NYSE in fiscal 2000, ICICI Bank's acquisition of Bank of Madura Limited in an allstock amalgamation in fiscal 2001, and secondary market sales by ICICI to institutional investors in fiscal 2001 and fiscal 2002. ICICI was formed in 1955 at the initiative of The World Bank, the Government of India and representatives of Indian industry. The principal objective was to create a development financial institution for Providing medium-term and long-term project financing to Indian businesses. In the 1990s, ICICI transformed its business from a development financial institution offering only project finance to

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a diversified financial service group offering a wide variety of products and services, both directly and through a number of subsidiaries and affiliates like ICICI Bank. In 1999, ICICI become the first Indian company and the first bank or financial institution from non-Japan Asia to be listed on the NYSE. In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger of ICICI and two of its wholly owned retail finance subsidiaries, ICICI Personal Financial Services Limited and ICICI Capital Services Limited, with ICICI Bank. The merger was approved by shareholders of ICICI and ICICI Bank in January 2002, by the High Court of Gujarat at Ahmadabad in March 2002, and by the High Court of Judicature at Mumbai and the Reserve Bank of India in April 2002. Consequent to the merger, the ICICI group's financing and banking Operations, both wholesale and retail, have been integrated in a single entity.

BUSINESS OBJECTIVES
Vision To be the leading provider of financial services in India and a major global bank. Mission We will leverage our people, technology, speed and financial capital to: be the banker of first choice for our customers by delivering high quality, world-class service. Expand the frontiers of our business globally. Play a proactive role in the full realisation of Indias potential. maintain a healthy financial profile and diversify our earnings across businesses and geographies.

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Maintain high standards of governance and ethics. Contribute positively to the various countries and markets in which we operate. Create value for our stakeholders. Product and Services Service and banking of ICICI bank categorized in to personal banking, business banking and NRI banking services. Personal banking- Deposit in form of saving, recurring, term deposit, senior citizen deposit and children depository account are there for individual customer can also avail of their housing, automobile, farm equipment, business or personal loan scheme. Personal client can also invest in mutual funds and participate in stock trading through ICICI bank. Business banking Business banking services of ICICI Bank are exhaustive. Project financing, deal assessment, and land evaluation are investment banking services offered to corporate clients. Global trade and cash management transaction services facilitate remittances and receipts across important cities. Capital market and custodial services enable business houses to participate in equity trading and transfer across major stock markets of world.

Customer
ICICI bank targets all segment of customer with various types of products and services. I interacted with a a lot of customers and collect their feedback on the given services of company, and feedback are positive response from all point of view. Customers are beneficiary from both sides monetary as well as non monetary. The bank targets to add nearly 500,000 customers under the new scheme in the next one year and plans to offer auto loans through the new online channel in the future, ICICI Bank's Executive Director, V Vaidyanathan, said here. "As of now, nearly 24 per cent of our customer transactions are happening through internet. We are primarily targeting our urban customers, who constitute nearly 70 per cent of our total customer-base," Vaidyanathan said.

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Customers, opting for the service can also benefit from the quantum optima facility, wherein if the balance exceeds Rs 5,000, the money will automatically be transferred to a fixed deposit scheme, he said. The facility, which also enable customers to transact between an ICICI Bank account and accounts in other banks, is being offered free of cost, he said ICICI bank, presently, has above 2 crore customers. The lender opened nearly 470 branches in the last fiscal. The lender has also plans to launch 'SMS n Cash' scheme later this week under which ICICI account holders can transfer funds to those who do not have a bank account. ICICI bank is strongly committed to protecting the privacy of its customers and has taken all necessary and reasonable measures to protect the confidentiality of the customer information and its transmission through the world wide web and it shall not be held liable for disclosure of the confidential information when in accordance with this privacy commitment or in terms of the agreements, if any, with the customers. ICICI bank Endeavours to safeguard and ensure the security of the information provided by the customer. ICICI bank uses 128-bit encryption, for the transmission of the information, which is currently the permitted level of encryption in India. When the information provided by the customers is not transmitted through this encryption, the customer's system (if configured accordingly) will display an appropriate message ensuring the best level of secrecy for the customer's information. The customer would be required to cooperate with ICICI bank in order to ensure the security of the information, and it is recommended that the customers necessarily choose their passwords carefully such that no unauthorized access is made by a third party. To make the password complex and difficult for others to guess, the customers should use combination of alphabets, numbers and special characters (like! @, #, $ etc.). The customers should undertake not to disclose their password to anyone or keep any written or other record of the password such that a third party could access it. ICICI bank undertakes not to disclose the information provided by the customers to any person, unless such action is necessary to: Conform to legal requirements or comply with legal process; Protect and defend ICICI bank's or its affiliates rights, interests or property; Enforce the terms and conditions of the products or services; or

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Act to protect the interests of ICICI bank, its affiliates, or its members, constituents or of
other persons.

Competitor

The main competitor of is ICICI bank is SBI because this bank is totally taken by government after this bank HDFC bank is the main competitor of ICICI bank .There are different types of segment operation semment, investment and services, demat and NRI services.The competitor from the operation segment are State Bank of India(SBI), Axis, Housing Development and Financial corporation(HDFC) etc.From the investment And service sector HDFC standard life insurance corporation, Bharati Axa life insurance ,Reliance Life Insurance Corporation, Max new work life insurance SBI Life insurance,Life Insurance Corporation of India.In demat section India bull,Anangram,SBI,HDFC,India Infoline are the main competitor of ICICI bank.In the NRI service section the Western Union bank is the main competitor of ICICI bank.There are some other company who also compete with the ICICI bank After the SBI the HDFC bank is the main competitor of ICICI bank. HDFC Bank Ltd. is a commercial bank of India, incorporated in August 1994, after the Reserve Bank of India allowed establishing private sector banks. The Bank was promoted by the Housing Development Finance Corporation, a premier housing finance company (set up in 1977) of India. HDFC Bank has 1,500 branches and over 2,890 ATMs, in 530 cities in India, and all branches of the bank are linked on an online real-time basis. As of September 30, 2008 the bank had total assets of INR 1006.82 billion. State Bank of India is the largest bank in India. It is also, measured by the number of branch offices and employees, the second largest bank in the world.[citation needed] The bank traces its ancestry back through the Imperial Bank of India to the founding in 1806 of the Bank of Calcutta, making it the oldest commercial bank in the Indian Subcontinent. The Government of India nationalised the Imperial Bank of India in 1955, with the Reserve Bank of India taking a 60% stake, and renamed it the State Bank of India. In 2008, the Government took over the stake held by the Reserve Bank of India.SBI provides a range of banking products through its vast network in India and overseas, including products aimed at NRIs. With an asset base of

50

$126 billion and its reach, it is a regional banking behemoth. SBI has laid emphasis on reducing the huge manpower through Golden handshake schemes and computerizing its operations.The State Bank Group, with over 16000 branches , has the largest branch network in India. It has a market share among Indian commercial banks of about 20% in deposits and advances, and SBI accounts for almost one-fifth of the nations loans.There are some other banks which gives challenging some how in the banking and service sectorthey are:

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

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

TECHNOLOGY
ICICI use many type of advance technological software like Pinnacle 7.0 and Pinnacle7.016.Among from this software ICICI bank uses the e-banking, core banking, mobile banking electronic display sy ICICI Bank was using Teradata for its data warehouse. However, due to its proprietary hardware, the cost of procurement, upgrades and administration was soaring. The closed box architecture of Teradata imposed restrictions on scalability. Secondly, querying and loading could not happen simultaneously. Queries could only be run during business hours because the loading of data had to take place during off-business hours. This meant that the refresh rate of EDW was delayed, so queries may not reflect the most current data. ICICI Bank was also dependent on Teradata for support and other activities: The bank was completely tied down to that solution.

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These issues compelled ICICI Bank to look for more efficient and flexible solutions. The solution would have to address not only current issues, but accommodate future growth expectations and business requirements. ICICI Bank evaluated numerous data warehousing solutions in the pursuit of solving its issues, and developed a shortlist of alternatives for its migration proof-ofconcept: Sybase, SAS and Netezza. The primary criteria for evaluation was the price-toperformance ratio where Sybase IQ emerged the clear winner. During this rigorous testing, Sybase IQ delivered faster results on independent hardware and operating systems with minimum infrastructure. Commending the improvements achieved, Amit Sethi, Joint General Manager, ICICI bank says, "What impressed us wasthat even with overall lower costs, we could achieve significantly better query performanceafter implementing the Sybase enterprise warehouse solution." ICICI Infotech today launched an enterprise resource planning (ERP) solution for the small and medium enterprises. The ERP package - Orion Advantage - comes bundled with an HP dual processor Xeon server, Oracle 9i database, Windows 2003 server and costs about Rs 9.90 lakh and has a 15-user license. An ERP package helps a manufacturer or any other business implementing it to manage all the important parts in the company such as product planning, parts purchasing, maintaining inventory and interacting with suppliers and customers. ICICI InfoTech officials told a press conference here today that Orion Advantage offered a set of business practice solutions for industry segments such as engineering, auto ancillary, pharmaceuticals, chemicals and IT distribution. Besides the cost advantage, the ERP package also came pre-configured. ICICI InfoTech had mapped the processes specific to each industry segment into the package. Mr. R.K. Kanthi, Deputy General Manager, ICICI InfoTech, said there was no ERP package for the SMEs that bundled the server, database and operating system right now. That was the advantage ICICI InfoTech offered to SMEs as Orion Advantage came bundled and preconfigured. Besides the high cost of generic ERP packages, their implementation time as far as SMEs were concerned was also long. Orion Advantage could be installed in 45 days.

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ICICI InfoTech had signed up six customers so far for the package and hoped to garner a 15 per cent market share of the SME segment, whose number in the country was estimated at 2.30 lakh. The Chennai centers were involved in research and development of Orion ERP solutions and Premia, an insurance package. ERP Systems Integration Pinnacle Software Solutions has the expertise and experience to assist you with your enterprise systems integration. From developing your strategy, through implementation and support, we bring the right combination of resources, management skill sets, and technical know-how. We will help you successfully integrate your Enterprise Resource Planning (ERP) systems into your overall business and technology infrastructure. Whether you are planning an upgrade of an existing ERP system, or a complete replacement of a legacy application and platform, we can help you improve your financial, human resources, electronic mail, and other business systems. We work with the leading ERP systems, including the latest versions of the Oracle and PeopleSoft applications: General Ledger Accounts Payable Accounts Receivable Purchasing Asset Management Project Costing Human Resources Payroll Benefits Compensation

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

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KEY SUBSIDIARIES ICICI Prudential Life Insurance Company


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

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

Understanding the needs of customers and offering them superior products and service Building long lasting relationships with their partners Providing an enabling environment to foster growth and learning for their employees

And above all building transparency in all our dealings. They believe that they can play a significant role in redefining and reshaping the sector. Given the quality of their parentage and the commitment of their team, they feel that there will be no limits to their growth. Board of Directors The ICICI Prudential Life Insurance Company Limited Board comprises reputed people from the finance industry both from India and abroad. Shri K.V. Kamath, Chairman

Management Team
Ms. Shikha Sharma, Managing Director Mr. Kevin Wright, Executive Vice President - Sales & Distribution Ms. Madhavi Soman, Chief - Strategic Initiatives Mr. V. Rajagopalan, Appointed Actuary Mr. Sandeep Batra, Chief Financial Officer & Company Secretary Mr. Saugata Gupta, Chief - Marketing & Service Mr. Shubhro J. Mitra, Chief - Human Resources Corporate Office: ICCI Prulife Towers, 1089, Appasahab Marathe Marg, Prabhadevi, Mumbai 400 025. Telephone Number: 022-462 1600 Website : www.iciciprulife.com

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ICICI Prudential Life Insurance Company (ICICI Life) maintained its market leadership in the private sector with an overall market share of 9.3% based on retail new business weighted received premium in fiscal 2010. ICICI Lifes total premium increased by 7.7% to Rs. 165.32 billion in fiscal 2010 with renewal premiums increasing by 19.4%. ICICI Lifes new business annualised premium equivalent was Rs. 53.45 billion in fiscal 2010. ICICI Life achieved its first year of accounting profits since inception in fiscal 2010 with a profit after tax of Rs. 2.58 billion. The expense ratio has decreased from 11.8% in fiscal 2009 to 9.1% in fiscal 2010. Assets held at March 31, 2010 were Rs. 573.19 billion compared to Rs. 327.88 billion at March 31, 2009. ICICI Lifes unaudited New Business Profit in fiscal 2010 was Rs. 10.15 billion. Life insurance companies make accounting losses in initial years due to business set-up and customer acquisition costs in the initial years and reserving for actuarial liability. Further, in India, amortization of acquisition costs is not permitted. These factors resulted in statutory losses for ICICI Life since the companys inception till fiscal 2009. If properly priced, life insurance policies are profitable over the life of the policy, but at the time of sale, there is a loss on account of nonamortized expenses and commissions, generally termed as new business strain that emerges out of new business written during the year. New Business Profit is an alternate measure of the underlying business profitability (as opposed to the statutory profit or loss) and is the present value of the profits of the new business written during the year. It is based on standard economic and non-economic assumptions including risk discount rates, investment returns, mortality, expenses and persistency assumptions.

ICICI Lombard General Insurance Company


ICICI Lombard General Insurance Company Limited is a 74:26 joint venture between ICICI Bank Limited and Canada based Fairfax Financial Holdings Limited. ICICI Bank is India's second largest bank, while Fairfax Financial Holdings is a diversified financial corporate engaged in general insurance, reinsurance, insurance claims management and Investment management. Lombard Canada Ltd, a group company of Fairfax Financial Holdings Limited, is one of Canada's oldest property and casualty insurers. ICICI Lombard General Insurance Company received regulatory approvals to commence general insurance business in August 2000.

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Board Members

Mr K V Kamath, Chairman Mr R Athappan, Director Mr B V Bhargava, Director Mr Dileep Choksi, Director Mr James F Dowd, Director Ms Lalita D Gupte, Director Ms Kalpana Morparia, Director Mr S Mukherji, Director Mr Chandran Ratnaswami, Director Mr H N Sinor, Director Mr Sandeep Bakhshi, Managing Director & CEO

Retail Segment of ICICI Lombard General Insurance :


ICICI Lombard's Retail Segment consists of personal insurance products - Health, Home, Motor and Travel insurances.

Health Insurance
ICICI Lombard is known to be a pioneer in introducing innovative concepts in the Indian health Insurance sector. Be it the floater concept, the critical illness cover or the tax gain policy, all these were first introduced by ICICI Lombard. It was also one of the first general insurance companies in India to have a robust online system in place for buying and renewing policies. The various plans offered by ICICI Lombard include Family Floater Plan - where one policy covers the entire family, Health Advantage Plus - where they cover OPD and dental expenses, also help save maximum tax under section 80D and Critical Illness plan - a special policy covering a list of critical illnesses. They also have a basic Personal Accident Plan which covers against accidents. ICICI Lombard health plans also provide coverage against terrorism.

Home Insurance
Home Insurance is actually one of the most neglected areas in the general insurance category. Simply, because people in general, especially in India, do not give much importance to it. However, in the recent years, due to the increase in awareness, and the great extent of damage

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

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

Travel Insurance
Travel insurance is one of the most prominent sector of general insurance, especially overseas travel insurance and student medical insurance. ICICI Lombard offers various options in both the categories. The Overseas Travel Plans and Student Medical Plans offered cover medical and non-medical expenses, including compensation for flights hijacked and pre existing diseases in case of emergency. They charge on a per day basis if the travel is more than 7 days. ICICI Lombard has tied up with United Health Group to facilitate access to all its clinics while in U.S. The Student Medical Plans are accepted in almost universities worldwide. They also have a section in their website, University Search, where one can find specific plans for specific universities. All the above retail policies can be bought online, without any documentation through their website www.icicilombard.com .One can not only buy, but also manage and renew their insurance policies online.

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

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Parents' Health Insurance covers hospitalization and medical expenses incurred by parents of the policyholder in India. For parents' travelling outside India, ICICI Lombard offers a Parents' Overseas Travel Insurance policy. An NRI can insure his children/ dependents travelling abroad to study, under the Student Medical Insurance plan. Likewise, the Home Insurance and Car Insurance schemes enables an NRI to secure his assets in India. Channels Channel is the term used for the various approaches a company uses to tap its customers. ICICI Lombard uses a multi channel approach to ensure the sales, service and other allied activities are carried out in the most effective manner. Retail The Retail channel consists of sales executives, sales officers, brokers and agents. They are the one who are in direct contact with the customers and bring the innovative insurance solutions to their doorsteps. Online ICICI Lombard has developed a web-based system to meet all the pre and post-policy transaction. One can get quotes, buy, renew and track their policies onlin e through the website [www.icicilombard.com]. With the do-it-yourself architecture, the online channel is fast, convenient, easy to understand and operate.

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

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ICICI Prudential Asset Management Company


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

ICICI Venture Funds Management Company Limited


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

ICICI Securities Limited and ICICI Securities Primary Dealership Limited


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

ICICI Bank UK PLC


ICICI Bank UK PLC (ICICI Bank UK) offers retail and corporate and investment banking services in the UK and Europe. During fiscal 2010, ICICI Bank UK continued to focus on rebalancing its deposit base towards retail term deposits and the proportion of retail term deposits in total deposits increased from 58% at March 31, 2009 to 66% at March 31, 2010. ICICI Bank UKs profit after tax for fiscal 2010 was USD 37.0 million compared to US$ 6.8 million in fiscal 2009. ICICI Bank UKs capital position continued to be strong with a capital adequacy ratio of 17.3% at March 31, 2010.

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ICICI Bank Canada


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

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ICICI Bank Product & Customer Segment:


PERSONAL BANKING Loan Product Auto Loan Loan Against Security Loan Against Property Personal loan Credit card 2-wheeler loan Commercial vehicles finance Home loans Retail business banking Tractor loan Working Capital Finance Construction Equipment Finance Health Care Finance Education Loan Gold Loan Cards Credit Card Debit Card Prepaid Card Deposit Product Saving a/c Current a/c Fixed deposit Demat a/c Safe Deposit Lockers Investment & Insurance Mutual Fund Bonds Knowledge Centre Insurance General and Health Insurance Equity and Derivatives Mudra Gold Bar

Payment Services NetSafe Merchant Prepaid Refill Bill pay Visa Bill pay Insta Pay

Access To Bank

-------------------------------Forex Services ------------------------------- Product & Services Trade Services Forex service Branch Locater RBI Guidelines

Direct Pay
Visa Money Transfer eMonies Electronic Funds Transfer Online Payment of

Net Banking One View Insta Alert Mobile Banking ATM Phone Banking Email Statements Branch Network

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Direct Tax

WHOLESALE BANKING
Corporate Funded Services Non Funded Services Value Added Services Internet Banking Small and Medium Enterprises Funded Services Non Funded Services Specialized Services Value added services Internet Banking Financial Institutions and Trusts BANKS Clearing Sub-Membership RTGS sub-membership Fund Transfer ATM Tie-ups Corporate Salary a/c Tax Collection Financial Institutions Mutual Funds Stock Brokers Insurance Companies Commodities Business Trusts

NRI SERVICES
Accounts & Deposits Rupee Saving a/c Rupee Current a/c Rupee Fixed Deposits Foreign Currency Deposits Accounts for Returning Indians Remittances North America UK Europe South East Asia Middle East Africa Others Quick remit IndiaLink

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Cheque LockBox Telegraphic/ Wire Transfer Funds Transfer Cheques/DDs/TCs Investment & Insurances Mutual Funds Insurance Private Banking Portfolio Investment Scheme Payment Services Loans Home Loans Loans Against Securities Loans Against Deposits Gold Credit Card Access To Bank

PRODUCTS & SERVICES OFFERED BY ICICI BANK


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

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

Special Savings Account:


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

LIFE PLUSSenior citizens savings account

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LIFE PLUS,a special savings account for senior citizens from ICICI Bank is packed with a host of benefits, designed keeping your unique financial requirements in mind. Special senior citizens desk to cater to all banking transactions, so that you dont wait in queues.

Higher interest rate on FD/RD: avail the combined benefits of safety, flexibility and attractive returns with ICICI Bank Fixed Deposit and Recurring Deposit. Free special senior citizen LIFE PLUS debit card. Money multiplies facility. Extended banking hours allows you to visit our branches, as per your convenience. Anywhere banking access to various services, ICICI Bank has to offer anytime, anywhere and from any place, including branches, ATMs and phone banking. Nomination facility available. Quarterly average balance (QAB) requirement of Rs.5000. Quarterly physical statements are delivered to your doorstep to absolutely free of cost. Passbook on request.

Young Stars Account:


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

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Advantage woman savings account


The ICICI Bank Advantage Woman Account enables todays independent women to enjoy hassle-free banking services. Besides the core ICICI Bank advantage, the Advantage Woman Savings Account is packed with special benefits for our women customers. Enjoy your present and plan for the future with ICICI Banks Advantage Woman Savings Account. Advantage Woman offers a specially designed woman's debit card which helps you shop and save simultaneously, manages your household expenditures and comes with a bag full of offers attached to it. Special International Womans Debit Card with lots of offers. Free unlimited access to any banks ATM. Bill Pay facility & Multi Channel Access. Payable-at-par cheque book. Nomination facility available. Zero balance facility with an RD of Rs.2000 or Quarterly Average Balance (QAB) requirement of Rs. 10,000.

Current Accounts:
Every business requires efficient banking facilities to support its business activities. ICICI Bank offers premium quality service, unfolding a wide array of class products. With technology leadership and service the bank is able to meet some of the most challenging financial needs of clients. A Current Account is one that is required by Businessman, Joint stock companies, Institutions, Public authorities, public corporations etc. Any business that has numerous banking transactions need a current account as it Allows running account supporting unlimited withdrawals and deposits. Is meant for convenience and not to save money.

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Roaming Current Account


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

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

The process of drawing cheques for salaries is replaced by sending a single ASCII file to the bank and the amount is directly credited into the employees salary account

Cuts down payroll processing workload Salary Account can be opened with minimum 10 employees Instant credit of salaries

ICICI Bank Salary Account is a benefit-rich payroll account for Employers and Employees. As an organization, you can opt for our Salary Accounts to enable easy disbursements of salaries and enjoy numerous other benefits too. With ICICI Bank Salary Accounts your employees will enjoy the convenience of : Having the largest network of ATMs at their command, Free 24 hour Phone Banking, Free Internet Banking.

All that the organization would require to do is to send ICICI Bank an advice (in form of a cheque/debit instruction etc) for the total salary amount along with the salary details of the designated employees in a soft and hard copy format and we will credit the respective

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employees' accounts as per your statement of advice. ICICI Bank Salary Accounts benefits you in more than one ways: Reduces paperwork. Saves remittance costs.

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

Fixed deposits:
Fixed deposits are options which help you grow your money thus creating wealth in a safer and secure way. ICICI provides its customers with various kinds of Fixed deposit facilities that are flexible and cater to customers who have different needs and wants in their fixed deposits. ICICI provides a Fixed Deposit that allows customers to deposit their money for just as long as you wish. Wide range of tenures 15 days to 10 years. Choice of investment plan traditional and cumulative deposits. Partial withdrawal allowed. Loan facility available you can avail loan up to 90% of principal and accrued interest. Auto renewal facility you can choose this option so that the deposit can be renewed on maturity. Interest compounded quarterly. Additional interest rate of 0.5% for senior citizens.

Recurring Deposits:
ICICI Bank Recurring Deposits are an ideal way to invest small amounts of money every month and end up with a large kitty on maturity. High recurring billing and recurring

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payments can be a drain on your finances and hence large investments may seem a plan away. Recurring deposits aims to encourage savings without putting any stress on customers finances by making them to put a lump sum amount in fixed deposit in one go. The recurring deposit also attracts high rate of return that are identical to the fixed deposit rates and most importantly no TDS is applicable in it .the minimum balance of deposit is of Rs.500 and thereafter in multiples of Rs.100 the minimum period is 6 months and thereafter in multiples of 3 months, nomination facility is also available.

Security Deposits:
A few Corporates stipulate to their new employees to provide Security Deposit to reduce attrition. ICICI Banks proposal for the employee is to keep the Security Deposit in the form of a Fixed Deposit (FD) with the Bank. The employee cannot withdraw such FDs without the consent of the company and the company has the right to withdraw the FD in the event of employee leaving the organization before a certain stipulated period.

ICICI Bank Tax-Saver Fixed Deposit


ICICI Banks Tax-Saver Fixed Deposit enables you to save tax and earn high returns. A dual benefit option structured to maximize your advantage. ICICI Banks Tax Saver FD is the perfect solution for your investment needs.

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

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Resident Foreign Currency (Domestic) Account


Do you want to save money while buying foreign currency for travelling abroad? You can buy travelers cheques, foreign currency in cash and foreign currency demand draft for your expenses overseas. If you are a frequent traveler, you may not want to go through the hassles of buying foreign currency every time you travel abroad. The Reserve Bank of India has now made it easier for you to access foreign currency by permitting a foreign currency account (domestic) for resident Indians. In line with RBI guidelines, ICICI Bank has come up with a scheme that helps you get rid of all your Forex worries. You can park your foreign currency in ICICI Bank under RFC (D) account. Non-interest bearing Resident Foreign Currency (D) (RFC (D)) with ICICI Bank can be maintained in four major currencies (USD, EURO, GBP and Japanese Yen)

PRIVILEGE BANKING:
Privilege banking service ensures preferential treatment to its customers.

Silver privilege A/c


Waiver of multi-city cheque book usage up to Rs. 1,00,000 per month. Waiver of DD/PO charges for up to Rs.50,000 per day. Preferential rates of gold coins, deposits locker &foreign exchange. Quarterly average balance requirement of Rs.25000.

Gold privilege A/c


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

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Titanium privilege A/c


Branch relationship manager supported with phone banking relationship manager.

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

Family banking:
Superior product benefits of privilege banking, wealth management and global private client (GPC) available to all the members of your family while the required minimum balance can be maintained in any of the accounts. Access to superior benefits for the entire family. Flexibility to maintain balances across account. Lower minimum balance requirement at individual customer level. Single family bank convenience for the entire family and easier funds management.

Outward Remittance:
Send money to your loved ones abroad
ICICI Bank offers you a simple way to send money outside India. Our Outward Remittance facilities make remitting money abroad quick, and reliable. ICICI Banks Outward Remittance is the solution for your all your needs. Be it money for education, gift money or maintenance for loved ones or donation for a cause. Our extensive network gives us reach to most parts of the world.

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

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

New Pension System of Government of India


ICICI Bank with 49 branches is a Point of Presence (POP) for the NEW PENSION SYSTEM launched on May 1, 2009 by the Government of India. The scheme, promoted by the PFRDA (Pension Fund Regulatory and Development Authority, Government of India), is a first of its kind in India and is being launched pan-India by 22 other POP's as well. The purpose of this pension scheme is to promote security of income to its subscribers in their old age. The scheme will empower a subscriber to plan his own retirement and pension. It not only will help him save for life after retirement but also is a good investment tool as the returns are market-driven. For optimum returns, the Government has appointed six fund managers for subscribers to choose from.

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Various Loans offered by ICICI Bank HOME LOAN


Interest rates on home loans have come down considerably in the last few years. Individuals, who opted for housing loans in the years gone by, are still servicing them at 17% to 21% per annum. Quite a price to pay, since one can get a loan today for around 12% per annum. In such a case, you can opt for a balance transfer. Under this scheme, customers can replace their existing old high interest loan by a cheaper (equal to applicable current rates) loan. ICICI Home Finance will not only finance the balance amount of outstanding loan but also your prepayment charges to the old housing finance company.

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

PERSONAL LOANS
ICICI Bank Personal Loans are easy to get and absolutely hassle free. With minimum documentation you can now secure a loan for an amount up to Rs. 15 Lakhs. Loans for salaried & self employed individuals. Loans are available from Rs. 20,000 to Rs. 15 Lakhs.

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

CAR LOAN

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

COMMERCIAL VEHICLE LOAN


Reaches you through more than 700 locations across the country. Range of products under one umbrella. Funding of various products like HCVs, Buses, MCVs, LCVs, 3 wheelers & used vehicle.

Range of services on existing loans & extended products like funding of new vehicles, refinance on used vehicles, balance transfer on high cost loans, top up on existing loans, Extend product, working capital loans & other banking products..

Preferred financier status with most of the leading manufacturers. Simple documentation. Quick turnaround time. Flexible financing solutions to meet the individual requirement.

TWO WHEELER LOANS:

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

FARM EQUIPMENT LOANS:


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

CONSTRUCTION EQUIPMENT LOAN


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

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OFFICE EQUIPMENT LOAN:


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

MEDICAL EQUIPMENT LOAN:


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

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

LOAN AGAINST SECURITIES


Loans against Securities enables customers to obtain loans against their securities. So they get instant liquidity without having to sell their securities. All customers have to do is pledge your securities in favour of ICICI Bank The Bank will then grant them an overdraft facility upto a value determined on the basis of the securities pledged by them. A current account will be opened and customer can withdraw money as and when they require. Interest will be charged only on the amount withdrawn and for the time span utilised.

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ICICI offer loans against: Demat Shares RBI Relief Bonds Mutual Funds Units India Millennium Deposits (IMDs) ICICI Bank Bonds Life Insurance Policies (Single Premium

CREDIT CARDS:
ICICI Bank Credit Cards give you the facility of cash, convenience and a range of benefits, anywhere in the world. These benefits range from life time free cards, Insurance benefits, global emergency assistance service, discounts, utility payments, travel discounts and much more.

DEBIT CARDS:
The ICICI Bank Debit Card is a revolutionary form of cash that allows customers to access their bank account around the clock, around the world. The ICICI Bank Debit Card can be used for shopping at more than 100,000 merchants in India and 13 million merchants worldwide.

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

PRE PAID CARDS:


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

INVESTMENTS
ICICI Bank cares about all needs. Along with Deposit products and Loan offerings, ICICI Bank assists people to

manage their finances by providing various investment options ranging from ICICI Bank Tax Saving Bonds to Equity Investments through Initial Public Offers and Investment in Pure Gold. ICICI Bank facilitates following investment products:

ICICI Bank Tax Saving Bonds Government of India Bonds Investment in Mutual Funds Initial Public Offers by Corporate Investment in "Pure Gold" Foreign Exchange Services Senior Citizens Savings Scheme, 2004

Customers can invest in above products through any of ICICI bank branches. For select products ICICI Bank also provides the ease of investing through electronic channels like ATMs and Internet (ICICIdirect.com)

ICICI BANK BONDS


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

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GOI BONDS
8% Savings Bonds (Taxable), 2003. Low risk. Reasonable investment tenure. Nomination facility available. Cannot be traded in secondary market. Interest income taxable.

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

Types of Funds Sold


ICICI Bank helps investor determine which types of funds you need to meet your investment goals. This may include the following types of funds: Debt: Liquid schemes, Income schemes, G-sec schemes, Monthly Income Schemes etc. Equity: Diversified Equity Schemes, Sector Schemes, Index Schemes etc. Hybrid Funds: Balanced Schemes, Special Schemes - Pension Schemes, Child education Schemes etc. ICICI Bank helps investors identify an appropriate mix of Mutual Fund schemes for their portfolio using asset allocation strategies. Through ICICI Bank investor can invest in various schemes of multiple mutual funds with decent performance record. investor can take the aid of ICICI Banks various research reports on

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mutual funds and their schemes before choosing a scheme for investment. ICICI Bank offers investment in Mutual Funds through Multiple Channels. With ICICI Bank, investor can invest in Mutual Funds through following channels. And provide a dedicated workforce to serve clients. Before being deputed, our officers complete a comprehensive training program and, once deputed, they receive thorough instructions in financial planning skills and techniques Throughout their careers officers also attend programs to update their skills. All officers in charge of Mutual Funds are certified professionals by AMFI (Association of Mutual Funds in India) Many of these officers also hold professional degrees like - MBA, CA, ICWA, and CFA etc. ICICI keeps the investors updated on the latest happenings in the Mutual Fund industry and the various financial markets through regular electronic updates (daily & weekly) through Emails. ICICI also send out a monthly magazine on investments to their customers. ICICI Bank Branches ICICI Bank ATMS ICICIdirect.com

Initial public offerings (IPO)


Investor can invest in IPOs online through www.icicidirect.com with same convenience of investing in equities - hassle-free and with zero paper work. Also, get in-depth analyses of new IPOs issues (Initial Public Offerings) which are about to hit the market. IPO calendar, recent IPO listings, prospectus/offer documents and live prices will help you keep on top of the IPO markets.

ICICI Bank Pure Gold


Gold has been traditionally the most favored form of investment for Indians. In fact, India,

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even today is amongst the highest consumers of Gold in the world. However, the Gold market remains largely unorganized with reliability and convenience remaining the key issues for gold buyers in the country. ICICI Bank with its `Pure Gold' offer attempts to bridge the gap between the need of the customers for buying gold and availability of an organized avenue to satisfy that need, by taking care of the two key components:Reliability and Convenience.

CHAPTER 3

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3.1 INTRODUCTION OF CUSTOMER SATISFACTION


Customer satisfaction refers to the extent to which customers are happy with the products and services provided by a business. Customer satisfaction levels can be measured using survey techniques and questionnaires

DEFINITIONS:
Definition 1: Customer satisfaction is equivalent to making sure that product and service performance meets customer expectations. Definition 2: Customer satisfaction is the perception of the customer that the outcome of a business transaction is equal to or greater than his/her expectation. Definition 3: Customer satisfaction occurs when acquisition of products and/or services provides a minimum negative departure from expectations when compared with other acquisitions. Gaining high levels of customer satisfaction is very important to a business because satisfaction customers are most likely to be loyal and to make repeat orders and to use a wide range of services offered by a business There are many factors which lead in high levels of customer satisfaction including. Products and services which are customer focused and hence provide high levels of value for money. What is clear about customer satisfaction is that customers are most likely to appreciate the goods and services that they buy if they are made to feel special. This occurs when they feel that the products and services that they buy have been specially produced for them or for people like them.

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BENEFITS OF CUSTOMER SATISFACTION


The importance of customer satisfaction and support is increasingly becoming a vital business issue as organization realize the benefits of Customer Relationship Management (CRM) for providing effective customer service. Professionals working within customer-focused business or those running call centers or help desks, need to keep informed about the latest customer satisfaction techniques for running a valuable customer service function. From small customer service departments to large call centers, the importance of developing a valued relationship with customers using CRM is essential to support customer and long-term business growth. What Do Customers Want? Before we begin to create tools to measure the level of satisfaction, it is important to develop a clear understanding of what exactly the customer wants. We need to know what our customers expect from the products and services we provide. Customer expectations have two types Expressed Implied Expressed Customer Expectations are those requirements that are written down n the contract and agreed upon by both parties for example, product specifications and delivery requirements. Suppliers performance against these requirements is most of the items directly measurable. Implied Customer Expectations are not written or spoken but are the ones the customer would expect the supplier to meet nevertheless. For example, a customer would expect the service representative who calls on him to be knowledgeable and competent to solve a problem on the spot. There are many reasons why customer expectations are likely to change overtime. Process improvements, advent of new technology, changes in customers priorities, improved quality of service provided by competitors are just a few examples.

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The customer is always right. Suppliers job is to provide the customer what he/she wants, when he/she wants it. Customer satisfaction is customers perception that a supplier has met or exceeded their expectations.

WHAT CONSTITUTES SATISFACTION?


We cannot create customer satisfaction just by meeting customers requirements fully because these have to be met in any case. However failing short is certain to create dissatisfaction Major Attributes of customer satisfaction in banking industry can be summarized as: Product quality Premium Outflow Return on Investment Services Responsiveness and ability to resolve complaints and reject reports. Overall communication, accessibility and attitude. WHAT ARE THE TOOLS? Customer expectations can be identified using various methods such as: Periodic contract reviews Market research Telephonic interviews Personal visits Warranty records Informal discussions Satisfaction surveys

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Depending upon the customer base and available resources, we can choose a method that is most effective in measuring the customers perceptions. The purpose of the exercise is to identify priorities for improvements. We must develop a method or combination of methods that helps to continually improve service.

CUSTOMER SATISFACTION SURVEYS


Formal survey has emerged as by far the best method of periodically the customer satisfaction. The survey are not marketing tools but an informationgaining tool. Enough homework needs to be before embarking on the actual survey. This includes: Defining Objectives of the Survey Design Survey approach Develop questionnaires and forms Administer Survey (Email, Telephone or Post) Method of compiling data and analyzing the findings Format of the report to present the findings There is no point in asking irrelevant questions on a customer satisfaction questionnaire. The basic purpose is to find out what we are doing right or wrong. Where is the scope for improvement, where do we stand vis--vis other suppliers. How we can serve the customer better? A customer satisfaction measurement survey should at least identify the following objectives: Importance to customers (Customers priorities) Customers perception of suppliers performance Your performance relative to customers priorities. Priorities for improvement Survey forms should be easy to fill out with minimum amount of time and efforts on customers part. They should be designed to actively encourage the customer to complete the questions. Yet they must provide accurate data should also be sufficiently reliable for management decision making. This can be achieved by incorporating objective type questions

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where customer has to rate on scale of say 1 to 10. For repeated surveys, you could provide the rating that was previously accorded by the customer. This works like a reference point for the customer. Space should always be provided for the customers own opinions this enables them to state any additional requirements or report any shortcomings that are not covered by the objective questions. Normally, we deal various personnel at various levels in the customers organization the buyer, user, receiving inspector, finance and purchase person etc. surveying a number of respondents for each customer gives a complete perspective of customer satisfaction. It may be necessary to device a different questionnaire for each of them. Respondents must be provided a way to express the importance they attach to various survey parameters. Respondents should be asked to give a weighting factor, again on a rating scale of say, 1 to 10, for each requirement. This gives a better indication of relative importance of each parameter towards overall customer satisfaction and makes it easier for suppliers to prioritize their action plans by comparing the performance rating (scores) with importance rating (weighing).

3.2 Objective of Customer Satisfaction Survey


The following are all compelling reasons to survey your customers:

Demonstrate commitment to listening to customers. Enhance profits. Gain feedback from customers about products, services, and/or support, outside of what customers provide the sales force. Improve customer satisfaction and retention. Improve quality of service. Increase market share. Increase repeat business.

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Customer loyalty Effective communication Spotting trends Learn where the company stands in comparison with competitors. Measure and compensate the sales organization. Obtain information on product developments, priorities, and requirements. Obtain input on new products or services. Provide a way for unhappy customers to vent. Target resources on issues of concern to customers.

Measuring customer satisfaction


Organizations need into retain existing customers while targeting non-customers. Measuring customer satisfaction provides an indication of how successful the organization is at providing products and/or services to the marketplace. Customer satisfaction is measured at the individual level, but it is almost always reported at an aggregate level. It can be, and often is, measured along various dimensions. A hotel, for example, might ask customers to rate their experience with its front desk and check-in service, with the room, with the amenities in the room, with the restaurants, and so on. Additionally, in a holistic sense, the hotel might ask about overall satisfaction with your stay As research on consumption experiences grows, evidence suggests that consumers purchase goods and services for a combination of two types of benefits: hedonic and utilitarian. Hedonic benefits are associated with the sensory and experiential attributes of the product. Utilitarian benefits of a product are associated Customer satisfaction is the overall impression of customer about the supplier and the products and services delivered by the supplier.

Factors that could affect customer satisfaction:

Department wise capability of the supplier.

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Technological and engineering or re-engineering aspects of products and services. Type and quality of response provided by the supplier. Suppliers capability to commit on deadlines and how efficiently they are met. Customer service provided by the supplier. Complaint management. Cost, quality, performance and efficiency of the product. Suppliers personal facets like etiquettes and friendliness. Suppliers ability to manage whole customer life cycle. Compatible and hassle free functions and operations.

How to develop and improve Customer Satisfaction


Over the last few decades companies have increasingly begun to realize the importance of customer satisfaction. Where trading environments have become saturated and customers increasingly hard to come by, customer retention has become imperative. Business has concluded that customer satisfaction can therefore deliver financial benefit providing stability and a platform for growth, the alternative is a dissatisfied customer who seldom expresses their complaints they simply buy elsewhere. Customer Satisfaction can be analyzed, measured and improved, the tools and methods required to build and improve it are wide and varied, however there is consensus over the basics of a toolkit of processes and polices that business can exploit as they aim to build customer satisfaction. 1/ Assess the customers needs Aligning product and service offerings with customer needs can only be achieved when sufficient knowledge of customer requirements has been captured. Accurately understanding the customers needs is the most important step towards achieving customer satisfaction. Its worth pointing out that needs are often comprised of a mixture of both product and service offerings for example supermarket customers may be influenced over price and availability of products whilst also being influenced by how long they have to queue at the checkout.

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There are a variety of methods for assessing customer needs from modeling and statistical techniques to more standard assessment methods such as observing and questioning current and prospective customers. Assessment often takes the form of market analysis, buying trends and behaviors and determining factors that influence the customer. Needs assessment is an ongoing process and has various guises from questionnaires to workshops to complaints management. Fundamentally the customer is best placed to convey their needs and businesses should incorporate an appropriate strategy to track these.

2/ Ownership by Senior Management and involvement of the whole organization Once the customers needs have been captured they should be championed by the whole organization. To succeed customer satisfaction should be incorporated as a corporate strategy which should be supported from the senior management downwards. For the strategy to succeed the voice of the customer needs to reach those at the very top of the organization and the VP or Management Director must champion the customers requirements and ensure that the business is shaped and resourced to deliver. However, it doesnt just stop with senior management, the whole organization needs to understand the requirements of their customers and the role they have to play in satisfying them. Involvement will usually mean more than a crudely drawn up corporate values such as partnership or customer focused but staff will be tuned to requirements, be involved in their delivery and be acutely aware of the impact on service levels. The whole business, including those in senior positions should be able to talk fluently and accurately regarding the levels of satisfaction within its customer base together with engaging and participating in improvement programs.

A tuned organization will target staff development to support a customer orientated strategy. Many organizations also link financial rewards with customer satisfaction performance while this can be fruitful, businesses should ensure that incentives need to be placed correctly to deliver appropriate results.

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CHAPTER 4

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CONSUMER RESEARCH IN DIFFERENT DISCIPLINES


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

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CONSUMER SATISFACTION PROCESS


The paramount goal of marketing is to understand the customer and to influence buying behaviour. The process can be depicted as follows: Need recognition- realization of the difference between the desired and the current situation that serves as a trigger for entire process. Search for information. Pre purchase alternative evaluation. Consumption(utilization of the procured option) Post purchase alternative re-evaluation. Divestment(disposal of the unconsumed product and its remnants)

COMPANYS EFFORT TO ENSURE SATISFACTION OF CUSTOMERS: Objectives of ICICI


Promote good and fair banking practices by setting minimum standards in dealing with you Increase transparency so that you can have a better understanding of what you can reasonably expect of the services; Encourage market forces, through competition, to achieve higher operating standards; Promote a fair and cordial relationship between you and your bank; Foster confidence in the banking system

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

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Giving you information about them in any one or more of the following languages: Hindi, English or the appropriate local language.

Ensuring that our advertising and promotional literature is clear and not misleading Ensuring that you are given clear information about our products and services, the terms and conditions and the interest rates/service charges, which apply to them.

Giving you information on what are the benefits to you, how you can avail of the benefits, what are their financial implications and whom you can contact for addressing you queries.

To Help You Use Your Account Or Service By:


Providing you regular appropriate updates. Keeping you informed about changes in the interest rates, charges or terms and conditions.

Information
You can get information on interest rates, common fees and charges through any one of the following: Looking at the notices in our branches ; Phoning our branches or help-lines; Looking on our website; Asking our designated staff/help desk ;or Referring to the service guide/Tariff Schedule.

Before You Become a Customer we will:


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

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

tell you if we offer products and services in more than one way [for example, through ATMs, on the Internet, over the phone, in branches and so on] and tell you how to find out more about them;

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

Advertising, Marketing and Sales


We will make sure that all advertising and promotional material is clear, and not misleading. In any advertising in any media and promotional literature that draws attention to banking service or product and includes a reference to an interest rate, we will also indicate whether other fees and charges will apply and that full details of the relevant terms and conditions are available on request.

If we avail of the services of third parties for providing support services, we will require that such third parties handle your personal information (if any available to such third parties) with the same degree of confidentiality and security as we would.

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

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

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

CHAPTER 5
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RESEARCH METHODOLOGY
INTRODUCTION
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Research in common parlance refers to a search for knowledge. One can also define research as a scientific and systematic search for pertinent information on a specific topic. In fact, research is an art of scientific investigation. Research is a systematized effort to gain new knowledge Research is an original contribution to the existing knowledge for its advancement. It is the pursuit of truth with the help of study, observation, comparison and experiment. In short knowledge through objective and systematic method of finding solution to a problem is research. Research refers to the systematic method consisting of enunciating the problem, formulating the hypothesis, collection of the facts.

Title of the Study


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

Objective of the Study


Each research study has its own specific purpose. It is like to discover to Question through the application of scientific procedure. But the main aim of our research to find out the truth that is hidden and which has not been discovered as yet. My research study has following objectives: To Measure The Level of Satisfaction of Retail Banking Customers. To identify the factors which affect the customer satisfaction level in retail banks. To study about the competitive position of ICICI Bank in Competitive Market. To Study the customers attitude towards the financial products of the ICICI Bank. To Study the customers opinion towards the services provided by the ICICI Bank. To study about the effectiveness & efficiency of ICICI Bank in relation to its competitors. To study about whether people are satisfied with ICICI Bank Services & Management System or not. 98

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

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

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

Scope of the study: The study is specific only to retail banking in India. Understand different facilities provided by the bank to the customers. To do the careful study of steps which bank takes to attract the customers. 99

To study how bank are working for the development of the population and the The study is also useful to the bank to formulate a systematic structure for It informs customers about banks progressive attitude towards customers. Understand the overall performance and progress of the bank. The study also relates To Customer Satisfaction and Its Related Factors. The Service provided by the bank. The Image or Personality of the Bank. Convenience Provided To The Customers. Pricing policies of the bank. Maintenance Of Relationship With The Customers

economy. providing facilities to the customers.

factors studied are:

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

CHAPTER 6
10 0

FINDINGS
10 1

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

CHAPTER 7
10 2

Data Analysis & Interpretation


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Chart-1 Customer have Account with ICICI Bank

5% 20%

25% CURRENT SAVING LOAN

50%

OTHERS

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

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Chart-2 Attributes compelled by the customers to open saving account in any bank

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

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Chart-3 Customers having Bank Account With ICICI Bank From how many years

C ustom H er avingB ankA/C


80 70 60 50 40 30 20 10 0 0-1 1-5 YEARS 5-10 YEARS 20 10 Customer HavingBank A/C 70

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

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Chart-4 Reason for preference of ICICI Bank

Quicktransction Quality and s ervices

More support to cus er tom

50%

30% 20%

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

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Chart-5 Medium for customer awareness about the services provided by


ICICI Bank

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

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Chart-6 Thinking of the people about the Banks

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

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Chart-7 Suitability of processing of loan for the customers

70 60 50 40 30 20 10 0 YES NO 30 10 CAN NOTSAY Customer UsingService s Offered by Their Bank 60

IF NO>..WHY? (1) TAKING LONGER TIME PERIOD (2) DOCMENTATION COMPLEXITY (3) VERIFICTION

With the above analysis, it is found that 60% customers feel suitability with the processing of loan and 30% customers feel unsuitability & 10% cant say about this.

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Chart-8 Opinion of the customers about the processing charges of loan

HIGH 30%

LOW 20%

MEDIUM 50%

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

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Chart-9 Type of loan Preferred by the customers of ICICI Bank

HOUSING LOAN

PERSONAL

CARLOAN

EDUCATION

8% 20% 2% 70%

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

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Chart-10 Customers Opinion about the interest rate charged on loan by the ICICI bank

HIGH 30%

LOW 30%

AVERAGE 40%

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

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Chart-11 Internet banking Services availed by the customers of ICICI Bank

80 70 60 50 40 30 20 10 0 YES NO 30 70

As with above analysis, it is found that most of the customers doesnt use internet banking services due to lack of awareness, connectivity problems & more complexity and only 30% customers using internet banking services of ICICI bank.

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(IN CASE OF NO)

Chart-12 Reasons for not using Internet banking Service by the customers

S ervices
LACK OF AWARENESS CONNECTIVITYPROBLEM MORECOMPLEX 25% 40%

35%

As with above analysis, it is found that those customers who doesnt use internet banking services most of them doesnt know about internet banking services and 35% doesnt use due to connectivity problem & 25% customers doesnt use internet banking services due to more complexity.

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Chart-13 Customer opinion towards the financial services provided by the ICICI Bank

EXCELLANT

VERY GOOD

GOOD

AVERAGE

10%

20%

40%

30%

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

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Chart-14 Level of Customer satisfaction towards the services provided by ICICI Bank

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

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CHAPTER 8

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SWOT ANALYSIS
STRENGTHS

All the branches are interconnected which give the unique facility of anywhere banking.
Branches of ICICI Bank are well equipped with advanced technology to provide the customers with taster banking services

All operations of the bank are carried on with the help of computers thus transaction are carried with greater efficiency. ATM +Debit card facility. High number of executives which make the work of customers very convenient. The withdrawal limit provided by the bank is 40000 per day through ATM & 100000 through cheque per day. Maximum customer base in Jaipur as compared to any of the bank.

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WEAKNESS

Less awareness among general masses about the different services provided by the bank. High bank service charges. Peoples faith in private banks is still not very high. Provide less credit period. Minimum balance level of all the accounts are very high.

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12 1

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OPPORTUNITIES

Peoples dissatisfaction towards nationalized banks in terms of services has turned to be blessing for private banks. Among the private players ICICI bank have the excellent brand image. There lies a great scope in Forex department which is unutilized to a greater extent can yield much better results by which the bank can increase its volume. Special services can be provided to women as the womens role is becoming prominent. The trust of people is increasing on the banks rather than going for financial institution. There is vast untapped opportunity which lies for every bank in the rural area. Recruit professionally qualified students

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THREATS

Reorganization of PSUs. All the PSUs have started to redefine their services to attract customers attention. A few foreign banks have been permitted to increase their number branches and its entry has taken away some business of the existing banks. Stringent norms by RBI in any time in future can be a threat to private banks as their activities can be adversely affected. Stiff Competition No proper facility for uneducated customers

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CHAPTER 9

12 5

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

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CHAPTER 10

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SUGGESTIONS
1. The company should adopt best marketing strategy to expansion the market. 2. To increases its branches. 3. To increases more activity rather than banking system. 4. To make good relationship with its customer. 5. To make effort for increasing the awareness about the internet banking among the customers 6. To reduces the interest rate of loan process. 7. To reduces the minimum amount of maintaining the account.

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CHAPTER 11

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Confidential Questionnaire
Dear SIR/MADAM, I am conducting survey on ICICI. I shall be very thankful to give your few minutes to me for answering my few questions below.

NAME MARITAL STATUS

AGE OCCUPATION.

EDUCATIONAL QUALIFICATION.

1. What type of account do you have in ICICI Bank? (a) Current (b) Saving (c)Loan (d)Others

2. Which of the following attributes compelled you to most open saving account in any bank? (a) ATM (b) Cheque book (c) Internet Banking (d) Working hours (e) value added services

3. For the past how many years you have account with ICICI bank? (a) Less than 1 year (b) 1-5 years (c) More than 5 years

4. Why do you prefer ICICI bank? (a) Quality and services (b) Quick transaction (C)Support to customer

5. How would you know about the services provided by the ICICI Bank? (a) Through selling agent (b) Through friends & relatives 6. What the Peoples think about the banks? (a) Security (b) Saving (c) Imposition of a burden of expenses (d) Others (c) Through advertisement (d) Others

7. The process of loan is suitable to you? (a) Yes (b) No

If no .Why

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(a) Taking longer period of time (b) Documentation Complexity (c) Verification 8. What is your opinion about the processing charges of loan? (a) Low (b) Medium (c) High

9. Which kind of loan do you prefer? (a) Housing loan (b) Personal loan (c) Car loan (d) Education loan

10. What is your opinion about the interest rate charged on loan by the ICICI bank? (a) Low (b) Medium (c) High

11. Do you avail internet banking? (a) Yes (b) No

12. In case of no, Why are you not using internet banking (a) Lack of awareness (b) Connectivity problem (c) More complex for use

13. What do you feel about overall services of ICICI bank? (a) Excellent (b) Very good (c) Good (d) Average

14. Would you like any recommendation to ICICI Bank? ..

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CHAPTER 11

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BIBLIOGRAPHY BOOKS:
Kothari C. R.: Research Methodology=methods and techniques. Kotler Phillip: Marketing Management Eleventh revised edition, 2008.. Khan, M Y , Financial services, Tata McGraw-Hill, New Delhi 2010. Khan, M Y ,Indian Financial system, Tata McGraw-Hill, New Delhi 2010

WEBLIOGRAPHY
Http://www.icicibank.com http://finance.indiamart.com/investment_in_india/banking_in_india.html http://finance.indiamart.com/investment_in_india/nationalisation_banks.html http://en.wikipedia.org/wiki/banking_in_india http://en.wikipedia.org/wiki/bank http://moneycentral.msn.com/banking/services/home.asp Http://catalogs.indiamart.com/services/banking-services.html

NEWS PAPAERS
Times of India Economic Times Business today 13 3

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