A financial market is an organized trading platform for exchanging financial instruments

under a regulated framework[1]. The participants of the financial markets are borrowers
(issuers of financial instruments or securities), lenders (investors or buyers of financial
instruments) and financial intermediaries that facilitate investment in financial
instruments or securities. The financial markets comprise two markets[2] (A) Money
markets, which are regulated by the Reserve Bank of India (RBI) and (B) Capital
markets, which are regulated by the Securities Exchange Board of India (SEBI) and.

Financial Markets

(A) Money Markets
Money markets is the collective name given to the various firms and institutions that
deal in the various grades in near money[3]. The definition implies that the money
market caters to short-term demand and supply of funds. The major participants of the
money market are as follows:
Lenders: Lenders include the regulator RBI, commercial banks and brokers. These
participants facilitate the expansion or contraction of money in the market
Borrowers: Borrowers include commercial banks, stock brokers, other financial
institutions, businesses houses and governments provide financial instruments to other
investors depending upon the money borrowed from lenders
Accordingly, the characteristics of money market include the following:
1. Short-term The instruments in the money market have maturities mostly less than
a year and cater to short-term demand and supply of funds.
2. Highly liquid The money market is considered highly liquid wherein securities
(financial instruments) are purchased and sold in large denominations to reduce
transaction costs[4] (because they are a close substitute to cash)[5]. The market
distributes and redistributes cash balances in accordance to the liquidity needs of the
participants
3. Safe The instruments are considered safe with RBI playing a pivotal role in
monitoring regulating and managing monetary requirements of all participants.
4. Lower returns The transactions are on a same-day-basis and the returns on these
investments accordingly, are low.
5. Institutional investors Retail or individuals investors cannot directly participate in
money markets. The money market mainly caters to institutional investors who
require instant cash for running their operations in the financial system. However,
retail or individual investors indirectly participate in money markets by lending money
to institutions (large corporations and government) through bonds to gain high
returns.
6. Monetary policy The money markets are governed and influenced by changes in
the monetary policy. For example, changes in interest rates announced by RBI play
a critical role in determining liquidity requirements in the overall financial system
7. Interrelated sub-markets The money market consists of the following interrelated
markets[6]:
1. Call money market
2. Commercial bill or Bill market
3. Treasury bill market
4. Commercial Paper (CP) market
5. Certificates of Deposits (CD) market
Each and every abovementioned sub-market is characterised with different money
market instruments with different maturities offered in mostly different trading
platforms and cater to different borrowers/ lenders with the objective of
maintainingdifferent liquidity requirements. For example, in the call money market,
banks borrow call money / notice money from other banks and non-banks to maintain
CRR[7]requirements[8]. The exchange occurs in Over-the-Counter (OTC) market
(without brokers) and the maturity period of call money instruments vary between one
day and a fortnight.
(B) Capital Markets
Capital market is an organized mechanism for effective and smooth transfer of long-
term capital money or financial resources from borrowers (corporates / government) to
lenders. This market enables channelizing of savings from investors to raise productive
capital for borrowers, which in turn provides higher returns to investors for their
investments through relevant profits.
The securities or issues or instruments in capital markets include equity and debt
securities. Capital markets (equity and corporate debt) in India are predominantly
regulated by the SEBI[9]. However, government securities (in the debt market) are
regulated by the RBI. Based on the aforementioned description, following are some
characteristics identified for the capital markets:
1. Primary and secondary securities To raise productive capital, lenders issue and/or
trade financial securities (instruments) through primary and secondary markets.
Primary markets deal with issuance of new capital (or financial securities), whereas
the secondary market (or stock market) deals with buying and selling of already
existing securities that are listed on the stock exchanges[10]. Primary and secondary
markets are inter-dependent and important for creation of long-term funds in the
capital markets. For the new issues or securities introduced and sold by the lenders
in the primary markets, the proceeds of the same go directly to the lenders (to raise
capital). These proceeds are however, dependent upon favourable macroeconomic
conditions of an economy. Subsequently, these issues are traded in the secondary
market (or stock exchanges) that also provide the basis for determining possible
prices of primary issues. Thus, depth and performance of the secondary markets
depends upon the new issues / securities in the primary markets because the larger
number of new securities issued in primary markets lead to availability of larger
number of instruments for trading in secondary markets. Thus, the primary markets
facilitate liquidity in the secondary markets further leading capital formation. The
secondary market can also divert funds to the primary market for new issues of large
size and bunching of large issues also affecting the stock prices. Lenders can raise
its capital in primary markets either through any of the following public issue, rights
issue, bonus issue and private placement (Private placement is securities to sold to
few select investors like large banks, insurance companies, mutual fund companies,
etc). The interrelationship between primary and secondary markets lead to provision
of long-term securities to raise capital.
2. Risk-returns Capital markets are characterised with equity and debt instruments
that allow diversification of risks between high-risk equity instruments and low-risk
debt instruments. Nevertheless, capital markets are considered as high-risk markets
in comparison to money markets.
3. Low-information and transaction costs[11] The capital markets are mostly
transparent and information about the trends in the market is available and
accessible in comparison to money markets. Also, due to ease in availability and
accessibility of long-term securities, transaction costs are comparatively lower than
money markets. For example, retail investors can invest in stock markets through a
dematerialised account provided by banks.
4. Retail & institutional The capital markets is an inclusive market that enables all
kinds of investors to invest and gain higher returns. The investors include individual
or retail investors, small-medium-large businesses, financial or non-financial
institutions and government
5. Capital allocation Capital markets are a medium of efficiently allocating capital in
the system through a competitive pricing mechanism

(C) Linkages between money and capital markets
There are significant linkages between money and capital markets and are discussed
as follows[12]:
1. Involvement of financial institutions (and regulators) exists in both the markets.
Financial institutions act as intermediaries and facilitators of short-term and long-term
liquidity requirements of all kinds of investors (individual, corporations and
governments)
2. Capital and money markets involve trading of a variety of financial instruments for a
specific time period and investors depending upon the nature of investment and risks
further leading to risk diversification
3. Short-term funds raised in the money market are used to provide liquidity for long-
term investments and redemption of funds raised in the capital market
4. For the development of financial markets, development of money markets generally
precedes the development of capital market
Characteristics of financial markets

Financial Markets
The description of capital and money markets leads to understanding the following
characteristics of financial markets:
1. Financial markets enable large volume of transactions and mobilize financial
(short-term and long-term) resources at real-time basis through investments in
stocks, bonds and money
2. Financial markets generate a scope of arbitrage across different markets. This
implies, that investors can take advantage of price differences across different
markets and diversify risks
3. Financial markets are characterised with volatility directed by trade of large volume
of securities. Mostly, these markets are influenced by macroeconomic and political
changes in India and the world
4. Markets are dominated by financial intermediaries who take investment decisions as
well as risks on behalf of depositors (savers)
5. Financial markets are also characterised by externalities. An externality refers to cost
or benefit that are not transmitted by prices but influenced by a stakeholders actions
in the financial markets leading to market failures. For example, speculation in prices
of stock markets could affect the workings of the money market
6. Domestic financial markets are also becoming integrated with global financial
markets that not only enables capital mobility at a global level but spread of risks
across the globe

FINANCIAL SYSTEM & THE ECONOMY
An economy consists of two kinds of economic structures that encompasses the
financial system Savings structure and Borrowing Structure

Savings structure
The savings structure in an economy consists of savers or entities that save in the form
of financial assets (deposits, life insurance, etc) or cash balances. Savings can be
estimated as the remainder or surplus from incomes earned after expenditures (food,
rent, home supplies, etc). This surplus or savings can be directed in the form of
financial assets or withheld as cash.
Savers or entities that save can be further categorised into the following:
1. Household sector The household sector include individuals, unincorporated
businesses, farm production units and non-profit businesses. Savings for the
household sector is mostly in financial such as includes deposits, life insurance,
shares & debentures, provident and pension fund, loans for durables and real estate.

Savings Structure: Household Sector
Savings are mostly considered synonymous to deposit accounts (offered by banks)
though savings can be directed towards life insurance, provident and pension funds
or loans on durables / real estate that are regarded as productive investments. Thus,
household sector demand for financial assets to make productive use of their
savings. The household sector contributes to a majority of the savings in India in
comparison to the private and government sector
2. Private sector This sector includes non-government, non-financial companies,
private financial institutions and co-operative institutions that are involved in
production and/or distribution of goods and services. The sector mostly includes
profit-making companies that are driven by various social, political, economic,
technological, legal and demographic factors. Savings in this sector are in the form of
net profit generated by businesses
3. State and Government sector This sector includes government, administrative
departments and enterprises both departmental and non-departmental. Savings for
this sector is the difference between government receipts and government
expenditure. Receipts of government are classified into the following[13]:
1. Revenue receipts such as tax revenues (corporate tax, income tax, other taxes on
incomes & expenditure, taxes on wealth, customs, excise duties, service tax, other
taxes / duties on commodities and services and surcharge transferred to national
calamity and contingency fund) and non-tax revenues (consisting of interest
receipts[14], dividends[15], profit from public enterprises and fees/charges for
providing various services)
2. Non-debt capital receipts such as recoveries of loans and disinvestment of
governments equity holdings in Public Sector Undertakings (PSUs)
Expenditures of government are classified into the following:
1. Non-plan expenditures that include interest, subsidies, defence, pensions, police,
grants-in-aid, loans, etc
2. Plan expenditures include expenditures as per the Central plan and central
assistance to state and Union Territories (UT) plans
Borrowing structure
The borrowing structure in an economy comprises of borrowers or entities that finance
their needs through borrowing. The needs of borrowers could involve incurring
expenditures on labour, plant and equipment, constructing residential, industrial or
commercial sites and building additions to inventories. The borrowers include the
government sector (central and state level), public sector and private sector
corporations. The borrowers provide or supply financial assets to savers by issuing
primary securities in financial markets, which in turn are reissued by financial
intermediaries as secondary securities (in financial markets) for the savers as
investments. The flow of savings (from the savings structure) to the flow of investments
(to the borrowing structure) leads to capital formation or long-term investments

Capital Formation
Capital formation
The flow of money from savings to investments leads to formation of capital stock in the
form of equipment, buildings, intermediate goods and inventories. Capital formation
reflects the countrys capability of producing and distributing goods and services across
different sectors and industries thus leading to an increase in the country national
incomes of economic growth. National income of a country or economic growth can be
measured by calculating the Gross Domestic Product (GDP) or Gross National Product
(GNP) that comprises economic activities in sectors like agriculture, industry and
services requiring financial resources to allocate labour, capital and other factors of
production.

Economic Growth

Circular Flow of the Economy

The savings and borrowing structure converge to build up capital in the country, which
in turn leads to economic growth. The economic growth of an economy can be
explained based on the association between household sector and the
private/government sector[16]. The household sector contributes to the market of
factors of production (land, labour and capital) which act as expenses for firms in private
and government sector incurred for production and distribution of goods and services in
a market. This market is the common platform where the household sector can
purchase finished products / services for consumption. The returns from consumption
are translated as profits to the firms which in turn are redistributed as wages and/or rent
in the market of factors of production to the household sector. This circular flow of
money between the household and firms in private / government sector characterises
the development of national incomes of an economy which is measured as Gross
Domestic Product or GDP that encompasses consumption, investments, government
spending or expenditures and net exports (exports minus imports). GDP can also be
calculated as the sum of capital formation, consumption expenditure and net exports.







Size of Financial Services in India
Mutual fund AUMs
Total AUM of the mutual fund industry clocked a CAGR of 16.8 per cent over FY0713
to US$ 150 billion.

Investor breakup
Corporate investors account for around 49 per cent of total AUM in India.


Industry

AGRICULTURE
AUTOMOBILES
AUTO COMPONENTS
AVIATION
BANKING
BIOTECHNOLOGY
CEMENT
CONSUMER MARKETS
EDUCATION AND TRAINING
ENGINEERING
FINANCIAL SERVICES
FOOD INDUSTRY
GEMS AND JEWELLERY
HEALTHCARE
INFRASTRUCTURE
INSURANCE
MANUFACTURING
MEDIA AND ENTERTAINMENT
OIL AND GAS
PHARMACEUTICALS
REAL ESTATE
RESEARCH AND DEVELOPMENT
RETAIL
SCIENCE AND TECHNOLOGY

Introduction
India's services sector has always served the Indian economy well, accounting for
nearly 57 per cent of the gross domestic product (GDP). Here, the financial services
segment has been a significant contributor.
The financial services sector in India is dominated by commercial banks which have
more than 60 per cent share of the total assets; other segments include mutual funds,
insurance firms, non-banking institutions, cooperatives and pension funds.
The Government of India has introduced reforms to liberalise, regulate and enhance the
country's financial services industry. Presently, the country can claim to be one of the
world's most vibrant capital markets. In spite of the challenges that are still there, the
sector's future looks good.
Market size
The size of banking assets in India reached US$ 1.8 trillion in FY 13 and is projected to
touch US$ 28.5 trillion by FY 25.
Information technology (IT) services, the largest spending segment of India's insurance
industry at Rs 4,000 crore (US$ 665.78 million) in 2014, is anticipated to continue
enjoying strong growth at 16 per cent. Category leaders are business process
outsourcing (BPO) at 25 per cent and consulting at 21 per cent.
Investments
During FY 14, foreign institutional investors (FIIs) invested a net amount of about Rs
80,000 crore (US$ 13.31 billion) in India's equity market, according to data by Securities
and Exchange Board of India (SEBI).
Insurance companies in India will spend about Rs 12,100 crore (US$ 2.01 billion) on IT
products and services in 2014, a 12 per cent increase over the previous year, according
to Gartner Inc. The forecast includes spending by insurers on segments such as internal
IT (including personnel), telecommunications, hardware, software, and external IT
services. The Rs 1200 crore (US$ 202.47 million) software segment is predicted to be
the fastest growing external segment, with overall growth of 18 per cent in 2014.
The following are some of the key developments and investmentsin the Indian financial
services sector:
About 75 per cent of the insurance policies sold by 2020 would be in one way or
another influenced by digital channels during the pre-purchase, purchase or
renewal stages, according to a report by Boston Consulting Group (BCG) and
Google India. This report, Digital@Insurance-20X By 2020, predicts that
insurance sales from online channels will increase 20 times from present-day
sales by 2020, and overall internet influenced sales will reach Rs 300,000-
400,000 crore (US$ 49.9-66.54 billion).
Export-Import Bank of India (Exim Bank) will focus more on supporting project
exports from India to South Asia, Africa and Latin America, as per Mr
Yaduvendra Mathur, Chairman and MD, Exim Bank. The bank has moved up the
value chain by lending support to project exports so that India earns foreign
exchange. In 2012-13, Exim Bank had supported 85 project export contracts
valued at Rs 24,255 crore (US$ 4.03 billion) secured by 47 companies in 23
countries.
Private-sector lender IndusInd Bank will soon begin its asset reconstruction
business. It plans to partner asset reconstruction companies (ARCs) for this
venture. "I think our new initiative, which is going to launch in the next two
months, is about asset reconstruction. We will do asset reconstruction within the
bank but in tie-ups with ARCs. The business plan is ready. We believe a huge
stock of assets is coming into the ARCs as a business area that we need to look
at and we will exploit," said Mr Romesh Sobti, CEO and MD, IndusInd Bank.
Association of Mutual Funds in India (AMFI) has reported that the mutual fund
industry's assets under management (AUM) have gone past the Rs 10 trillion
(US$ 166.37 billion) mark in May, 2014. The AUM of the Indian mutual fund
industry rose to Rs 10.11 trillion (US$ 168.19 billion) in May from Rs 9.45 trillion
(US$ 157.21 billion) in April.
Government Initiatives
In an effort to enable banks to provide greater choice in insurance products through
their branches, a proposal could be made which will allow banks to act as corporate
agents and tie up with multiple insurers. A committee set up by the Finance Ministry of
India is likely to suggest this model as an alternative to the broking model.
The Reserve Bank of India (RBI) has simplified the rules for credit to exporters.
Exporters can now receive long-term advance credit from banks for up to 10 years to
service their contracts. They have to have a satisfactory record of three years to get
payments from banks, who can adjust the payments against future exports.
The RBI has enabled foreign investors, including foreign portfolio investors (FPIs) and
non-resident Indians (NRIs), to invest up to 26 per cent in insurance and related
activities via the automatic route. "Effective from February 4, 2014, foreign investment
by way of FDI, investment by FIIs/FPIs and NRIs up to 26 per cent under automatic
route shall be permitted in insurance sector," as per the RBI.
Road Ahead
India is among the world's top 10 economies, driven by its strong banking and insurance
sectors. The country is expected to become the fifth largest banking sector in the world
by 2020, as per a joint report by KPMG-CII. The report anticipates bank credit to
increase at a compound annual growth rate (CAGR) of 17 per cent in the medium term
which will lead to better credit penetration.Life Insurance Council, the industry body of
life insurers in India, has also estimated a CAGR of 12-15 per cent over the next few
years for the segment.

Types of Financial Intermediaries



Deposit-type institutions
Depository-type institutions are the most commonly used types of financial
intermediaries because people use their services on a daily basis. Depository
institutions offer different types of checking or savings accounts and Time
Deposit s. Depository Institutions use the deposits to make loans such as
mortgages, consumer loans and business loans. The deposits and interest paid
on deposit accounts are insured by federally sponsored insurance agencies and
therefore are considered risk-free. These deposits are also highly liquid and can
usually be withdrawn on demand. Types of depository institutions are listed
and briefly explained below.
o Commercial Bank s
Commercial Banks are the largest among all financial intermediaries
and are also the most diversified due to the large range of assets
and Liabilities they hold. Their liabilities are in the form of checking and
savings deposits, and various types of time deposits. Bank deposits are
insured by the FDIC up to $100,000. The assets that commercial banks
hold are securities of various forms and denominations such as mortgage
loans, consumer loans, business loans and loans to state and local
governments. Commercial banks are among the most regulated forms of
business due to their vital role in the well-being of the economy.

o Thrift Institution s
Savings and loans associations and mutual savings banks are often
called thrift institutions. Thrift institutions offer checking and savings
accounts and other various types of time-deposits and use these funds to
purchase long-term mortgages. Savings and loans are the largest
residential mortgage lenders. Thrift Institutions specialize in maturity
interMediation since they take liquid deposits and lend the out in the
form of long-termCollateral ized loans. Thrift institution deposits are
insured by the FDIC up to $100,000.

o Credit Union s
Credit Unions are small non-profit depository institutions that are
owned by their members who are also their customers. Members of
credit unions all have a common Bond such as military service,
occupation etc... Credit unions primary liabilities are checking deposits
(share drafts) and savings accounts (share accounts) and credit unions
usually make theirInvestment s in the form of short-term installment
consumer loans. Deposits made to credit unions are insured by the FDIC
up to $100,000. The most significant difference between credit unions
and commercial banks are the restrictions that most loans are made to
consumers only, the common bond requirement for members, the non-
profit nature and the tax exemptions due to their cooperative nature.

Contractual Savings Institutions
These are savings institutions that obtain their funds through long-term
contractual arrangements and invest these funds on the capital markets.
Insurance companies and Pension Funds are contractual savings institutions.
They usually have a steady inflow of funds from their contractual arrangements
therefore they usually dont experience difficulties with Liquidity and can
make long-term investments in securities such as bonds and sometimes
common stock.
o Life Insurance Companies
Life insurance companies issues securities which are claims meant to
protect individuals and families from events such as premature death or
early retirement. In the event of early death or retirement the
beneficiaries receive benefits that were promised in the contract. Many
life insurance companies also offer some savings to their policy holders.
Since their cash-flows are predictable they are able to invest in long-
term securities that provide higher yields. Life Insurance companies are
regulated by the states they operate in unlike depository institution
which are regulated by they federal government.

o Casualty Insurance Companies
These types of insurance companies sell policies that protect
individuals or businesses against loss of property from fire, theft,
accidents or other causes that can be predicted through statistical
models. Casualty insurance companies' primary source of funds come
from premiums charged to the policyholders. Unlike life insurance
companies, the cash outflows of casualty insurance companies are not as
predictable; therefore they invest their funds in short-term, highly
marketable securities. Since short-term securities usually offer lower
returns, casualty insurance companies invest in higher risk securities
such as stocks to earn higher returns. To reduce taxes, casualty
insurance companies often also invest in municipal bonds.

o Pension Funds
Pension funds generally acquire funds from employer and employee
contributions while the employee is still working and provide the
employee with payments during retirement. Pension funds usually invest
funds in corporate bonds and equities. Pension funds are beneficial to
individuals because they help employees plan and save for retirement.
Because of the long-term investment nature, pension funds generally
invest in long-term, higher yield securities.

Investment Funds

o Mutual Fund s
Mutual funds pool together funds from investors and then build
a Portfolio consisting of equities and bonds. The investors own shares
which represent a portion of the mutual fund pie. The amount of shares
an investor owns is dependent on the amount of money he or she
contributed. Mutual funds are beneficial to small investors because they
offer diversification, Economies of Scale for transaction costs, and
professional portfolio management. The value of a mutual funds share
is not fixed; it fluctuates with the change in value of the mutual fund's
portfolio. Different mutual funds specialize in different sectors. Some
mutual funds specialize in high-risk growth stocks which are good for
young and risk tolerant investors while others specialize in income type
securities which are better for older retired individuals who need income
to pay for their living expenses.

o Money Market Mutual Funds
A Money Market Mutual Fund (MMMF) is simply a mutual fund that
strictly invests its pool of funds in money market securities which are
short-term securities with low default-risk. These securities are usually
sold in denominations starting at $1-million therefore most investors
dont have enough money to purchase them directly. MMMFs offer small
investors the opportunity to invest in these short-term securities without
taking on huge financial risks. MMMFs generally allow investors to write
checks and make withdraws making them competitive with checking and
savings accounts. However, there are usually limits on how many
withdraws can be made and the accounts are not insured.

Other Types of Financial Intermediaries

o Finance Companies
Finance companies obtain most of their money by issuing commercial
paper (short-term IOUs) to investors, and the rest is obtained from the
sale of Equity capital and long-term debt obligations. Finance companies
then take this money and make loans to consumers and businesses.
There are three basic types of finance companies: (1) consumer finance
companies which specialize in loans made to households, (2) business
finance companies which make loans and leases to businesses, and (3)
sales finance companies which finance the items that are sold by retail
stores. Finance companies are regulated by the states they operate in
but are also subject to regulation by the federal government.

o Federal Agencies
The U.S. government acts as a Financial Intermediary through its
agencies which take part in financial intermediary type transactions. The
goal of federal agencies is to reduce the costs of borrowing funds in
order to increase the flow of funds in certain sectors of the economy.
Government agencies achieve this by selling Debt securities called
agency securities and then lending the funds from the sale to the
economic sectors they serve. These agencies usually serve the housing
sector and agriculture sector because many argue that these sectors
would not be able to obtain credit at a reasonable cost if the
government did not take direct intervention.


http://www.icicibank.com/aboutus/group-comp.page?#toptitle
http://www.subjectmoney.com/definitiondisplay.php?word=A+List+and+Explanation+of+
Different+Types+of+Financial+Intermediaries






















History of ICICI bank
ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial
institution, and was its wholly-owned subsidiary. ICICI's shareholding in ICICI Bank was
reduced to 46% through a public offering of shares in India in fiscal 1998, an equity
offering in the form of ADRs listed on the NYSE in fiscal 2000, ICICI Bank's acquisition
of Bank of Madura Limited in an all-stock amalgamation in fiscal 2001, and secondary
market sales by ICICI to institutional investors in fiscal 2001 and fiscal 2002. ICICI was
formed in 1955 at the initiative of the World Bank, the Government of India and
representatives of Indian industry. The principal objective was to create a development
financial institution for providing medium-term and long-term project financing to Indian
businesses.

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

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

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

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

ICICI Bank is India's second-largest bank with total assets of Rs. 4,736.47 billion (US$
93 billion) at March 31, 2012 and profit after tax Rs. 64.65 billion (US$ 1,271 million) for
the year ended March 31, 2012. The Bank has a network of 2,791 branches and 10,021
ATMs in India, and has a presence in 19 countries, including India.

ICICI Prudential Life Insurance is a joint venture between ICICI Bank, a premier
financial powerhouse, and Prudential plc, a leading international financial services
group headquartered in the United Kingdom. ICICI Prudential Life was amongst the first
private sector insurance companies to begin operations in December 2000 after
receiving approval from Insurance Regulatory Development Authority (IRDA). ICICI
Prudential Life's capital stands at Rs. 47.91 billion (as of March 31, 2012) with ICICI
Bank and Prudential plc holding 74% and 26% stake respectively. For FY 2012, the
company garnered Rs.140.22 billion of total premiums and has underwritten over 13
million policies since inception. The company has assets held over Rs. 707.71 billion as
on March 31, 2012.

ICICI Lombard General Insurance Company, is a joint venture between ICICI Bank
Limited, India's second largest bank with consolidated total assets of over USD 91
billion at March 31, 2012 and Fairfax Financial Holdings Limited, a Canada based USD
30 billion diversified financial services company engaged in general insurance,
reinsurance, insurance claims management and investment management. ICICI
Lombard GIC Ltd. is the largest private sector general insurance company in India with
a Gross Written Premium (GWP) of Rs. 5,358 crore for the year ended March 31, 2012.
The company issued over 76 lakh policies and settled over 44 lakh claims and has a
claim disposal ratio of 99% (percentage of claims settled against claims reported) as on
March 31, 2012.

ICICI Securities Ltd is the largest integrated securities firm covering the needs of
corporate and retail customers through investment banking, institutional broking, retail
broking and financial product distribution businesses. Among the many awards that
ICICI Securities has won, the noteworthy awards for 2012 were: Asiamoney `Best
Domestic Equity House for 2012; 'BSE IPF D&B Equity Broking Awards 2012' under two
categories:- Best Equity Broking House - Cash Segment and Largest E-Broking House;
the Chief Learning Officer Award from World HRD Congress for Innovation in Learning
category. IDG India's CIO magazine has recognized ICICI Securities as a recipient of
CIO 100 award in 2009, 2010, 2011 and 2012. I-Sec won this awards 4 times in a row
for which the CIO Hall of Fame award was additionally conferred in 2012.

ICICI Securities Primary Dealership Limited (I-Sec PD) is the largest primary dealer in
Government Securities. It is an acknowledged leader in the Indian fixed income and
money markets, with a strong franchise across the spectrum of interest rate products
and services - institutional sales and trading, resource mobilisation, portfolio
management services and research. One of the first entities to be granted primary
dealership license by RBI, I-Sec PD has made pioneering contributions since inception
to debt market development in India. I-Sec PD is also credited with pioneering debt
market research in India. It is one of the largest portfolio managers in the country and
amongst PDs, managing the largest AUM under discretionary portfolio management.
I-Sec PDs leadership position and research expertise have been consistently
recognised by domestic and international agencies. In recognition of our performance in
the Fixed Income market, we have received the following awards:
Best Domestic Bond House in India - 2007, 2005, 2004, 2002 by Asia Money
Best Bond House - 2009, 2007, 2006, 2005, 2004, 2001 by Finance Asia
Best Domestic Bond House 2009 by The Asset Magazines annual Triple A
Country Awards
Ranked volume leader - by Greenwich Associates in 2010 Asian Fixed-Income
Investors Study. Ranked 5th in Domestic Currency Asian Credit with market
share of 4.5%, Only Domestic entity to be ranked.
Best Debt House in India 2012 by EUROMONEY
ICICI Prudential Asset Management is the third largest mutual fund with average asset
under management of Rs. 688.16 billion and a market share ( mutual fund ) of 10.34%
as on March 31, 2012. The Company manages a comprehensive range of mutual fund
schemes and portfolio management services to meet the varying investment needs of
its investors through117 branches and 196 CAMS official point of transaction
acceptance spread across the country.


ICICI Venture is one of the largest and most successful alternative asset managers in
India with funds under management of over US$ 2 billion. It has been a pioneer in the
Indian alternative asset industry since its establishment in 1988, having managed
several funds across various asset classes over multiple economic cycles. ICICI
Venture is a wholly owned subsidiary of ICICI Bank.
Products offered by ICICI Group
Funds & Investments
We understand that your investment goals and risk appetite change over time. To meet
these evolving financial needs, we offer you a diverse range of investment products.
Mutual Funds
Investment in Mutual Funds* is important to build an ideal and balanced portfolio. We
help you identify the appropriate mix of Mutual Fund Schemes as per your risk appetite
and financial goals, be it equity funds, where you look for growth and capital
appreciation, or debt funds for capital

*Mutual Fund investments are subject to market risks. Please read the offer documents
of respective schemes carefully before investing.
Portfolio Management Services*
ICICI Bank Wealth Management will assist you for Portfolio Management Services
(PMS) like Equity based Products, Commodity based Products, Index linked Products
etc. by referring to our partner Asset Management companies.

Alternative Investments
We help you broaden your investment avenues by offering you Alternative Investment
products like Residential & Commercial Real estate services**, Real Estate Funds &
Private Equity*, through our partners.

Deposits
ICICI Bank Wealth Management brings you a wide range of competitively priced deposit
products that offer you safety of investment and steady growth of your portfolio.

What's more, you can now invest in Deposits through our 24x7 channels: Internet
Banking, Phone Banking & at select ATMs.



























Product Offered by ICICI Prudential Asset Management Company Ltd

Equity Funds

Balanced/Hybrid Fund

Debt Funds

Fund of Funds

Exchange Traded Funds
Equity Funds
ICICI Prudential Dynamic Plan
ICICI Prudential Dynamic Plan is an Open-ended Diversified Equity Fund that aims to make the
most of market changes. Given the dynamic nature of the markets, the fund has the ability to
attack by taking aggressive asset calls in equity and equity related securities. On the flip side it
may also adopt a defensive strategy by investing in debt, money market instruments and
derivatives as and when markets get overvalued.


1 mth (%) 3 mth (%) 6 mth (%) 1 yr (%) 2 yr (%) 3 yr (%) 5yr (%)
Fund Returns 1.8 5.6 24.5 48.9 26.4 22.1 16.2


ICICI Prudential Focused Bluechip Equity Fund

ICICI Prudential Focused Bluechip Equity Fund is an Open-ended equity scheme that aims for
growth from a focused and optimally diversified portfolio.It invests in equity and equity related
securities of companies belonging to the large cap domain.

1 mth (%) 3 mth (%) 6 mth (%) 1 yr (%) 2 yr (%) 3 yr (%) 5yr (%)
Fund Returns 1.6 7.9 25.7 44.9 24.3 20.8 16.1


ICICI Prudential Value Discovery Fund

ICICI Prudential Value Discovery Fund is an Open-ended Diversified Equity Fund, which aims to
invest stocks available at a discount to their intrinsic value, through a process of Discovery.
The process involves identifying companies that are well managed, fundamentally strong, and
are available at a price, which can be termed as a bargain.

1 mth (%) 3 mth (%) 6 mth (%) 1 yr (%) 2 yr (%) 3 yr (%) 5yr (%)
Fund Returns 1.7 11.4 46.5 86.8 36.9 31.5 21.8

ICICI Prudential MidCap Fund

ICICI Prudential Midcap Fund is an open-ended diversified equity fund that selects Emerging
Stocks in the mid-cap space, targeted at returns over a long term investment horizon. It aims at
bringing you the benefit of investing in the leaders of tomorrow.

1 mth (%) 3 mth (%) 6 mth (%) 1 yr (%) 2 yr (%) 3 yr (%) 5yr (%)
Fund Returns 2.5 11.5 53.4 108.5 37.8 27.7 18.0




ICICI Prudential Tax Plan

There are various opportunities that individuals can avail, to save tax u/s 80C of Income tax Act
like Public Provident Fund, National Savings Certificate.

When compared to these traditional tax savings instruments, an Equity Linked Savings Scheme
is more opportunistic for individuals, as it provides a shorter lock-in period of three years and
potential for higher returns, which are exempt from taxes.

ICICI Prudential Tax Plan, an open-ended equity linked savings scheme, is an opportunity aimed
at harnessing the benefits of investing in equity and also providing tax benefits.

1 mth (%) 3 mth (%) 6 mth (%) 1 yr (%) 2 yr (%) 3 yr (%) 5yr (%)
Fund Returns 2.0 7.8 35.2 65.2 30.5 24.6 18.3


ICICI Prudential US Bluechip Equity Fund

ICICI Prudential US Bluechip Equity Fund is an open-ended equity scheme primarily investing in
select Bluechip Companies listed on stock exchanges of the United States of America. It aims
to bring you the benefit of investing in well established companies and targets growth, over a
long term investment horizon.

1 mth (%) 3 mth (%) 6 mth (%) 1 yr (%) 2 yr (%) 3 yr (%) 5yr (%)
Fund Returns -1.1 3.5 8.9 12.3 26.9 -- --

This Fund was launched on 11
th
July 2012.
ICICI Prudential Top 200 Fund

A multitude of choice could make it difficult to settle on anything. What looks excellent today
may not be that fruitful tomorrow, and what seems to be hopeless today could be terrific
tomorrow.

In this situation, after understanding the fundamentals of various opportunities, the smartest
move would be to focus small amounts across everything that seems promising. As a cautious
investor, you would do well to expose yourself to the idea of capturing market opportunities
and seeking out the optimum sectors to invest in.

ICICI Prudential Top 200 Fund, an open-ended diversified equity fund allows you to capture
growth opportunities by constantly being on the lookout for out the best sectors to invest in
across multiple regions in the market.


1 mth (%) 3 mth (%) 6 mth (%) 1 yr (%) 2 yr (%) 3 yr (%) 5yr (%)
Fund Returns 2.2 8.6 30.7 56.0 26.1 21.8 14.0

Balanced/Hybrid funds
ICICI Prudential Child Care Plan(Study)
All our dreams can come true, if we plan for and pursue them. And we need to remember that
our dreams are linked to our children's aspirations. A surgeon today, an astronaut tomorrow
and may be a fashion designer the day after. We must always encourage them to dream big.

ICICI Prudential Child Care Plan, an open-ended fund, is an investment instrument specially
designed to help you give your child a head start in life by leveraging the opportunities and
dynamism of equity and debt markets. It offers two options -
Gift Option - (Suitable if your child is in age group of 1-13 years.)
Study Option - (Suitable if your child is in age group of 13-17 years.)

ICICI Prudential Child Care Plan - Gift Plan
1 mth (%) 3 mth (%) 6 mth (%) 1 yr (%) 2 yr (%) 3 yr (%) 5yr (%)
Fund Returns 0.7 6.4 36.1 70.9 26.9 22.7 16.6

ICICI Prudential Child Care Plan - Study Plan
1 mth (%) 3 mth (%) 6 mth (%) 1 yr (%) 2 yr (%) 3 yr (%) 5yr (%)
Fund Returns 3.0 7.8 18.2 32.9 19.5 17.0 13.9


ICICI Prudential MIP 25
Although there are those who would like to leverage the benefits of equity investing, several
investors are focused on conservative growth and regular income. This is reflected through
portfolio's that are predominantly invested in fixed income securities.

However, these investors have the option add a 'spark' to their returns, by looking for a
measured and limited exposure to equity.

ICICI Prudential Income Multiplier Fund, an open-ended debt fund that invests upto 30% in
equity, adds a pinch of equity to your debt portfolio, so that you can benefit from the
dynamism of equity markets, with peace of mind.
1 mth (%) 3 mth (%) 6 mth (%) 1 yr (%) 2 yr (%) 3 yr (%) 5yr (%)
Fund Returns 1.5 4.1 12.2 21.5 12.7 12.1 9.4


ICICI Prudential Monthly Income Plan

Investing has always meant seeking a stable, regular return. Although there are those who
would sway towards leveraging the benefits of equity investing, several investors are focused
on conservative growth and regular income.

However, inflation tends to impact conservative returns, so a limited exposure to equity has the
potential to add a spark to your returns, while treading along cautiously.

ICICI Prudential Monthly Income Plan (MIP), (Monthly Income is not assured and is subject to
availability of distributable surplus), an open-ended fund, is designed to be a low risk income-
generating product for an investor who likes to earn the short term debt market return
enhanced by a small equity component that does not significantly add to the risk of the
portfolio.

1 mth (%) 3 mth (%) 6 mth (%) 1 yr (%) 2 yr (%) 3 yr (%) 5yr (%)
Fund Returns 1.9 4.0 11.4 19.4 11.4 10.9 8.7


ICICI Prudential Balanced Fund

Asset allocation is the key to investing success as it helps you reduce the volatility of returns. By
investing in equity for capital appreciation and debt for stable returns, you can reduce
instability of returns by increasing / decreasing exposure to various markets, based on in-depth
research and analysis.

ICICI Prudential Balanced Fund, an open-ended balanced fund, does just that. It takes care of
this asset allocation by constantly investigating market outlook and performance and
accordingly by increasing / decreasing equity exposure based on the market outlook and using
a core debt portfolio to do the rebalancing.

1 mth (%) 3 mth (%) 6 mth (%) 1 yr (%) 2 yr (%) 3 yr (%) 5yr (%)
Fund Returns 2.4 8.2 26.9 49.6 26.2 22.1 17.2


Debt Funds
ICICI Prudential Flexible Income Plan

The debt market offers its own risk-to-return tradeoff, which is triggered by changes in interest
rates and the impact they have on debt securities. To a fund manager, however, the changes in
the yield curve not only offers risk, but also opportunities to benefit by actively managing these
risks and making use of an opening to increase returns.

ICICI Prudential Flexible Income Plan, an open-ended income fund, seeks to actively manage
such risks as a conscious investment strategy by allowing the fund manager to switch the
allocation from a 100% debt stance to a 100% cash stance, which provides the flexibility to
implement yield curve strategies, or manage interest rate volatility better.

1 mth (%) 3 mth (%) 6 mth (%) 1 yr (%) 2 yr (%) 3 yr (%) 5yr (%)
Fund Returns 0.7 2.1 4.6 9.8 9.5 9.6 8.5


ICICI Prudential Savings Fund

There are many factors that determine the rate of interest of securities, and constant changes
in these underlying fundamentals, cause fluctuations in the interest rates, which has a direct
impact on the value of our portfolio. An increase in rates reduces the value of our holdings and
vice-versa.

If interest rates on instruments in the portfolio were to keep getting reset according to the
prevailing market rates, then, we may be able to focus on the interest income without worrying
too much about its impact on the portfolio.

ICICI Prudential Floating Rate Plan, an open-ended income fund, focuses primarily on dynamic
interest rates, and takes rapid action when necessary to minimize the impact of these
fluctuations on your portfolio.

1 mth (%) 3 mth (%) 6 mth (%) 1 yr (%) 2 yr (%) 3 yr (%) 5yr (%)
Fund Returns 0.7 2.0 4.3 8.8 8.5 8.6 7.5

ICICI Prudential Ultra Short Term Plan

Sometimes we overestimate our need to have instant access to our money. This leads to our
hard earned money lying idle in the bank account, while we keep planning to deploy our money
in a way that will earn higher interest. At the same time we may not want to lock our money
into a long term investment because we might require it in the near future.

ICICI Prudential Ultra Short Term Plan, an open-ended income fund, is designed for such short-
term requirement, as it enables deploying of funds for shorter periods of time, from 3 to 6
months, to generate regular income while cautiously monitoring the rate of interest.


1 mth (%) 3 mth (%) 6 mth (%) 1 yr (%) 2 yr (%) 3 yr (%) 5yr (%)
Fund Returns 0.8 1.9 4.5 9.2 8.7 8.9 5.9


ICICI Prudential Liquid Plan

There are times when we need our money to be easily accessible and safe, for planned or
unforeseen events. We can achieve this security and liquidity by depositing our funds in a bank
account, but the interest that we would earn would most often than not be quite low.

ICICI Prudential Liquid Plan, an open-ended liquid income fund, offers a potentially rewarding
parking facility for short-term, idle cash. It provides the flexibility of withdrawing cash as and
when required, and proves to be an investment through its earnings, while it is parked in the
fund.


1 mth (%) 3 mth (%) 6 mth (%) 1 yr (%) 2 yr (%) 3 yr (%) 5yr (%)
Fund Returns 0.7 2.1 4.5 9.4 9.2 9.4 8.3


ICICI Prudential Money Market Fund

There are times when we need our money to be easily accessible and safe, for planned or
unforeseen events. We can achieve this security and liquidity by depositing our funds in a bank
account, but the interest that we would earn would most often than not be quite low.

ICICI Prudential Money Market Fund, an open-ended Money Market fund, offers a potentially
rewarding parking facility for short-term, idle cash. It provides the flexibility of withdrawing
cash as and when required, and proves to be an investment through its earnings, while it is
parked in the fund.


1 mth (%) 3 mth (%) 6 mth (%) 1 yr (%) 2 yr (%) 3 yr (%) 5yr (%)
Fund Returns 0.7 2.1 4.5 9.2 9.1 9.4 7.8


ICICI Prudential Corporate Bond Fund
ICICI Prudential Corporate Bond Fund, an open-ended debt fund, which invests in corporate
bonds of 3 to 7 years tenure.

The scheme focuses on accrual income by investing into medium to long term corporate papers
available at a spread over market yields. The fund aims to cater to retail investors with
emphasis on higher carry (interest income) with due emphasis on credit quality and liquidity.
The ideal investment horizon of this fund is around 3 years.

1 mth (%) 3 mth (%) 6 mth (%) 1 yr (%) 2 yr (%) 3 yr (%) 5yr (%)
Fund Returns 1.3 2.4 5.9 11.7 8.4 8.7 7.8




Fund Of Funds
ICICI Prudential Global Stable Equity Fund
An open-ended fund of funds scheme that provides an opportunity to invest in international
companies that are stable and consistent in nature. The fund invests units / shares of Nordea
1 - Global Stable Equity Fund - Unhedged (N1 - GSEF - U).


1 mth (%) 3 mth (%) 6 mth (%) 1 yr (%) 2 yr (%) 3 yr (%) 5yr (%)
Fund Returns -0.5 2.1 6.4 10.3 -- -- --

Fund was launched on 17
th
September 2013


ICICI Prudential Advisor Series - Long Term Savings Plan
ICICI Prudential Advisor Series - Aggressive Plan seeks to generate long term capital
appreciation by making active allocation to the various equity, debt & money market
schemes & the gold exchange traded fund of domestic or offshore mutual funds based on the
asset valuations, interest rate outlook, the credit spreads and other such parameters.

The plan seeks to generate long term capital appreciation from a portfolio that is invested
predominantly in ICICI Prudential Mutual Fund schemes, mainly having asset allocation as
follows:

Equity oriented schemes (Maximum 80%, Minimum 50%)
Debt oriented schemes (Maximum 50%, Minimum 20%)
Money market schemes (Maximum 10%, Minimum 0%)
Gold Exchange Traded Funds (Maximum 30%, Minimum 0%)

1 mth (%) 3 mth (%) 6 mth (%) 1 yr (%) 2 yr (%) 3 yr (%) 5yr (%)
Fund Returns 0.3 0.6 12.0 32.7 12.2 12.8 11.2


ICICI Prudential Regular Gold Savings Fund

ICICI Prudential Regular Gold Savings Fund is an open-ended fund of fund scheme investing in
units of ICICI Prudential Gold Exchange Traded Fund.

1 mth (%) 3 mth (%) 6 mth (%) 1 yr (%) 2 yr (%) 3 yr (%) 5yr (%)
Fund Returns -3.4 -4.4 -8.3 -11.4 -8.6 -1.7 --




ICICI Prudential Advisor Cautious
ICICI Prudential Advisor Series - Cautious Plan seeks to provide regular income, by making
active allocation to the various debt, money market schemes & gold exchange traded funds
of domestic & offshore Mutual Funds, as highly rated debt instruments generally provide
safety and regular income to the portfolio and the potential for capital appreciation through
active management

The plan seeks to generate regular income through investments made primarily in the schemes
of ICICI Prudential Mutual Fund as follows:

Debt oriented schemes (Maximum 100%, Minimum 50%)
Money market schemes (Maximum 30%, Minimum 0%)
To a lesser extent (Maximum 35%, Minimum 0%) in equity oriented schemes so as to
generate long term capital appreciation
Gold Exchange Traded fund (Maximum 20%, Minimum 0%)

1 mth (%) 3 mth (%) 6 mth (%) 1 yr (%) 2 yr (%) 3 yr (%) 5yr (%)
Fund Returns 0.6 0.5 9.0 20.9 9.4 9.7 8.4


ICICI Prudential Advisor Moderate
ICICI Prudential Advisor Series - Moderate Plan seeks to generate long term capital
appreciation and current income, by making active allocation to the various equity, debt &
money market schemes of domestic or offshore mutual funds based on the asset valuations,
interest rate outlook, the credit spreads and other such parameters & in gold exchange
traded funds, which invests in gold bullion and instruments with gold as underlying.

The Plan seeks to generate long term capital appreciation and current income by creating a
portfolio that is invested in the ICICI Prudential Mutual Fund schemes as follows:

Equity oriented schemes (Maximum 60%, Minimum 40%)
Debt oriented schemes (Maximum 60%, Minimum 30%)
Money Market schemes (Maximum 30, Minimum 0%)
Gold Exchange Traded fund (Maximum 20%, Minimum 0%)

1 mth (%) 3 mth (%) 6 mth (%) 1 yr (%) 2 yr (%) 3 yr (%) 5yr (%)
Fund Returns 0.5 1.0 10.0 27.3 11.5 12.4 10.2

Exchange Traded Funds

ICICI Prudential NIFTY ETF

ICICI Prudential Nifty ETF, an open-ended Index Exchange Traded Fund offers a passive choice
to investors, who prefer that their portfolio closely maps the market index, the CNX Nifty Index.
It is an ETF (Exchange traded fund), which means investors can buy and sell at any time during
the market hours, through their brokers, just like any other equity share thereby offering a
greater degree of flexibility for monitoring price and reducing the time gap between investment
decision and trade execution.

1 mth (%) 3 mth (%) 6 mth (%) 1 yr (%) 2 yr (%) 3 yr (%) 5yr (%)
Fund Returns -0.9 5.0 19.5 39.8 -- -- --

This Fund was Launched on 22
nd
March 2013

ICICI Prudential CNX 100 ETF

ICICI Prudential CNX 100 ETF, an open-ended Index Exchange Traded Fund offers a passive
choice to investors, who prefer that their portfolio closely maps CNX 100 Index. It is an ETF
(Exchange traded fund), which means investors can buy and sell at any time during the market
hours, through their brokers, just like any other equity share thereby offering flexibility for
monitoring price and reducing the time gap between investment decision and trade execution.

1 mth (%) 3 mth (%) 6 mth (%) 1 yr (%) 2 yr (%) 3 yr (%) 5yr (%)
Fund Returns -0.8 4.8 20.5 41.5 -- -- --

This Fund was Launched on 1
st
October 2013

ICICI Prudential Gold Exchange Traded Fund

ICICI Prudential Gold Exchange Traded Fund, an open-ended exchange traded fund, aims to
provide investment returns that, before expenses, closely track the performance of domestic
prices of Gold.


1 mth (%) 3 mth (%) 6 mth (%) 1 yr (%) 2 yr (%) 3 yr (%) 5yr (%)
Fund Returns -3.9 -4.9 -4.4 -11.6 -8.3 -- --