INDEX

Introduction: ..................................................................
......................................................................... 2 Comp
any Profile: ...................................................................
.................................................................. 3 Reasons for
BPR Initiative: ...............................................................
........................................................ 4 Scope and Time Frame:
...............................................................................
............................................ 5 Team Involved: ..................
................................................................................
...................................... 7 Project Design: .......................
................................................................................
................................. 8 Supporting Tools and Techniques: ...........
................................................................................
.............. 13 Impact of the project as is: and "to be": .....................
.......................................................................... 14 Co
nclusion and Recommendations: ..................................................
..................................................... 15 Bibliography: .........
................................................................................
................................................ 16

Introduction:
BPR (Business Process Reengineering) is all about reinventing, rethinking, redes
igning, redirecting and rebuilding. It touches five segments strategy, processes
, organization, technology and culture. BPR is an ongoing process critical to a
company's success. Faced with a constantly changing business environment, compan
ies are scurrying to grasp the potency of this trend propelled by competition, g
lobalization and need for speed. The most important reason for companies to laun
ch BPR projects is to gain efficiency and productivity. Once this is achieved, t
hey can boost organizational efficiency and streamline business and production p
rocesses. BPR helps companies optimize work flow and productivity. A well- execu
ted business process redesign equips an organization to meet inevitable market c
hallenges. Despite the fact that BPR is a business stream, IT can be a facilitat
ing agent to it. As IT gets more closely aligned with core business units, IT-en
abled BPR initiatives is a sure-fire way of achieving results. IT has the inhere
nt capacity to innovate. If IT doesn't get involved in it, the transition will b
e a mess because IT knows where the data is. It has the brain power. Once IT rea
lizes what's going wrong, it can find solutions and address the critical concern
s. IT has to become an integral part of BPR initiatives to ensure a high level o
f organizational commitment. If IT does not get closely involved in BPR, busines
s will remain oblivious of the challenges heading its way. When IT takes charge
of PR initiatives it enhances the department's value within the organization and
brings it closer to business. BPR was implemented in ICICI Bank in year 2000 an
d later when anytime, anywhere banking came to our country, ICICI Bank had to mo
ve away from the branch-centric model and make its services available nationwide
. The solution was to centralize its applications.
2

Company Profile:
ICICI Bank (formerly Industrial Credit and Investment Corporation of India) is a
major banking and financial services organization in India. It is the 4th large
st bank in India and the largest private sector bank in India by market capitali
zation. The bank also has a network of 1,700+ branches (as on 31 March 2010) and
about 4,721 ATMs in India and presence in 19 countries, as well as some 24 mill
ion customers (at the end of July 2007). ICICI Bank offers a wide range of banki
ng products and financial services to corporate and retail customers through a v
ariety of delivery channels and specialization subsidiaries and affiliates in th
e areas of investment banking, life and non-life insurance, venture capital and
asset management. (These data are dynamic.) ICICI Bank is also the largest issue
r of credit cards in India. ICICI Bank's shares are listed on the stock exchange
s at Kolkata and Vadodara, Mumbai and the National Stock Exchange of India Limit
ed; its ADRs trade 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 representativ
es offices in 19 countries, including an offshore unit in Mumbai. This includes
wholly owned subsidiaries in Canada, Russia and the UK (the subsidiary through w
hich the HiSAVE savings brand is operated), offshore banking units in Bahrain an
d Singapore, an advisory branch in Dubai, branches in Belgium, Hong Kong and Sri
Lanka, and representative offices in Bangladesh, China, Malaysia, Indonesia, So
uth Africa, Thailand, the United Arab Emirates and USA. Overseas, the Bank is ta
rgeting the NRI (Non-Resident Indian) population in particular. ICICI reported a
1.15% rise in net profit to Rs. 1,014.21 crore on a 1.29% increase in total inc
ome to Rs. 9,712.31 crore in Q2 September 2008 over Q2 September 2007. The bank'
s CASA ratio increased to 30% in 2008 from 25% in 2007. ICICI Bank is one of the
Big Four Banks of India, along with State Bank of India, Axis Bank and HDFC Ban
k its main competitors.
3

Reasons for BPR Initiative:

In year 2000 and later when anytime, anywhere banking came to our country, ICICI
Bank had to move away from the branch-centric model and make its services avail
able nationwide. The solution was to centralize its applications. Legacy systems
: The traditional systems at ICICI Bank were very centric to the branch. For exa
mple a server at New Delhi was specific to the branch in that city; the ATMs wer
e standalone catering only to the city branch. The banking transactions were thu
s limited to the respective branch offices as customer data was not available in
other branches. This made banking a limited service and very branch specific. I
CICI realized the importance of offering nationwide banking but this would be po
ssible only by having a centralized data repository.

Scope and Time Frame:

In 1955, The Industrial Credit and Investment Corporation of India Limited (ICIC
I) was incorporated at the initiative of World Bank, the Government of India and
representatives of Indian industry, with the objective of creating a developmen
t financial institution for providing medium-term and long-term project financin
g to Indian businesses. In 1994, ICICI established Banking Corporation as a bank
ing subsidiary. Formerly known as Industrial Credit and Investment Corporation o
f India, ICICI Banking Corporation was later renamed as 'ICICI Bank Limited'. IC
ICI founded a separate legal entity, ICICI Bank, to undertake normal banking ope
rations - taking deposits, credit cards, car loans etc. In 2001, ICICI acquired
Bank of Madura (est. 1943). Bank of Madura was a Chettiar bank, and had acquired
Chettinad Mercantile Bank (est. 1933) and Illanji Bank (established 1904) in th
e 1960s. In 2002, The Boards of Directors of ICICI and ICICI Bank approved the r
everse merger of ICICI, ICICI Personal Financial Services Limited and ICICI Capi
tal Services Limited, into ICICI Bank. After receiving all necessary regulatory
approvals, ICICI integrated the group's financing and banking operations, both w
holesale and retail, into a single entity. At the same time, ICICI started its i
nternational expansion by opening representative offices in New York and London.
In India, ICICI Bank bought the Shimla and Darjeeling branches that Standard Ch
artered Bank had inherited when it acquired Grindlays Bank. In 2003, ICICI opene
d subsidiaries in Canada and the United Kingdom (UK), and in the UK it establish
ed an alliance with Lloyds TSB. It also opened an Offshore Banking Unit (OBU) in
Singapore and representative offices in Dubai and Shanghai. In 2004, ICICI open
ed a representative office in Bangladesh to tap the extensive trade between that
country, India and South Africa. In 2005, ICICI acquired Investitsionno-Kreditn
y Bank (IKB), a Russia bank with about US$4mn in assets, head office in Balabano
vo in the Kaluga region, and with a branch in Moscow. ICICI renamed the bank ICI
CI Bank Eurasia. Also, ICICI established a branch in Dubai International Financi
al Centre and in Hong Kong. In 2006, ICICI Bank UK opened a branch in Antwerp, i
n Belgium. ICICI opened representative offices in Bangkok, Jakarta, and Kuala Lu
mpur. In 2007, ICICI amalgamated Sangli Bank, which was headquartered in Sangli,
in Maharashtra State, and which had 158 branches in Maharashtra and another 31
in Karnataka State. Sangli Bank had been founded in 1916 and was particularly st
rong in rural areas. With respect to the international sphere, ICICI also receiv
ed permission from the government of Qatar to open a branch in Doha. Also, ICICI
Bank Eurasia opened a second branch, this time in St. Petersburg. In 2008, The
US Federal Reserve permitted ICICI to convert its representative office in New Y
ork into a branch. ICICI also established a branch in Frankfurt. In 2009, ICICI
made huge changes in its organisation like elimination of loss making department
and restreching outsourced staff or renegotiate their charges in consequent to
the recession. In addition to this,
5

ICICI adopted a massive approach aims for cost control and cost cutting. In cons
equent of it, compesation to staff was not increased and no bonus declared for 2
008-09.
Acquisition of Bank of Rajashthan
On 23 May, 2010 ICICI Bank
gh shareswap in a non-cash
000 crore. Each 118 shares
of ICICI. It is said that
ork by 25%.
6

announced merger with Bank of Rajasthan with it throu

deal that values the Bank of Rajasthan at about Rs 3,
of Bank of Rajasthan will be converted into 25 shares
this merger will also expand ICICI Bank's branch netw

Team Involved:
Infosys is one of technology partner for ICICI Bank which game the assistance to
implement Finacle for handling all the banking activities Bill Desk for online
payments SYBASE SAS
7

Project Design:
The shift The basic network was set up for providing the e-mail facility, but no
ne of the applications were linked to the network. The network comprised of a mi
x of servers running different applications at various branches of the bank. Wit
h growing business and rapidly increasing accounts, the company found it extreme
ly difficult to administer and manage the system. This also resulted in duplicat
ion of backend services and procedures, as the systems were not centralized for
the core banking applications. There was a lot of additional cost being incurred
due to the duplication of the backend procedures at the branch offices. The cen
tralization procedure started around late 1999. ICICI Infotech (a company promot
ed by ICICI) made the first network design for the group in 1999it was a hub and
spoke architecture. Utmost care was taken to design a network with a strong back
bone. According to Manoj, the key strength of a network is its back-bone. The gr
oup's various centers are connected by 2 Mbps or 4 Mbps leased lines. Manoj said
the design considerations not only included high bandwidth availability but als
o the fact that a single point of failure should not result in lines going down.
The group realized that it had to enter into the retail space, have local region
al presence, and provide alternate channels to the customer. They needed a solut
ion whereby they could offer services across the country. Centralizing the opera
tions was not the solution, but centralization of data was. ICICI Bank had alrea
dy centralized some of the operations but still had some branch applications run
ning independently which were not centralized and had ATMs which were stand-alon
es. Two major criteria considered before designing were not only the network, bu
t also the infrastructure available in our country In the past, the infrastructu
re here was such that a company could not rely on leased lines completely. So IC
ICI needed backups on ISDN and VSATs, along with the 64 Kbps leased lines. The l
eased lines were too expensive then, now the lines are better, more stable and o
ffer good connectivity. The cost has also come down by around 15 percent.
8

It was really important was to have a world class data center and centralize eve
rything in one place, as that's where the network can be used at the maximum. To
ensure 24x7 service access and connectivity to customers one needs to have reli
able backups and a robust network in place. From a business perspective, the mai
n reason to go in for a network was centralization of data, provide all channels
of communication and at the same time provide anytime, anywhere banking. The pr
oblem ICICI Bank faced with our legacy systems was that they were stand-alone sy
stems and the data from one branch was not available with another branch. These
problems led us to the new design of the hub and spoke architecture. The big sol
ution What ICICI was looking for was a robust network, which would enable it to
offer services at the retail level throughout the country. The in-house ICICI In
fotech was the obvious choice for consultation. The ICICI Infotech team designed
the initial network topology in 1999. The team had put forward a series of desi
gns, not radically different from each other. Eventually, a design with a mix of
VSATs, leased-lines, radio-links and ISDN was selected. A mixed design was sele
cted because of the disparate locations of the group across the country. There w
ere different technical problems in different locations and the next best availa
ble solution had to be included. The advantage in a hub and spoke architecture i
s that multiple nodes (spokes) are connected with a hub location through a ring
of single-mode fiber. Each hub-node connection can consist of single or multiple
wavelengths (lambdas), each carrying a full Gigabit Ethernet channel. Protectio
n from fiber cuts in the ring is achieved by connecting the hub and nodes throug
h both directions of the optical ring. Service provider Gigabit Ethernet metro a
ccess rings are the main applications for this architecture. And another advanta
ge is that nodes can be added to the network more easily. Methodology The most i
mportant aspect to setting up a network is to have a good relation between the t
echnology consultant (network integrator), the vendor and the client. The vendor
s in the market are more or less capable of giving the same results, like the sa
me amount of redundancy or strength of the network. What really matters is the r
elation between the three. If there is harmony amongst the three, then better re
sults will be achieved. The client plays the most important role as he has very
low time to market, and delivery is required at the earliest. A series of produc
ts are available in the market. As the time to market is so short, ICICI Infotec
h selects the products available in the market and integrates them. This takes c
are of 98 percent of
9

the solution requirement and then ICICI Infotech build the other two to three pe
rcent around it nd deliver the perfect solution to the client. The Network The n
etwork follows a hub and spoke architecturea mix of VSATs, leased lines, ISDN and
radio links. It has around 800 leased lines, about 600 VSATs, approximately 800
ISDN lines and multiple 34 Mbps lines. The network supports the ICICI group off
ices, banks, branches, and over 1000 ATMs. There is a primary site from where sp
okes go out to the regional branches and the other offices. The secondary site h
as the disaster recovery system. There are around eight hub locations, which hav
e 3, 4 or 8 Mbps lines as per the requirements for connecting to the branch and
regional offices. High-end Cisco routers and switches have been deployed for con
nectivity. The network is monitored using HP OpenView and CiscoWorks. Over 30 po
rtals are operating using a highly secure state-of-the-art security architecture
, which consist of firewalls, intrusion detection systems, virus protection and
various other tools. The main production site is at Mahalaxmi, Mumbai (the prima
ry site), and has been built to international standards. The disaster recovery s
ite (the secondary site) is located at ICICI towers in Bandra-Kurla complex, Mum
bai and is used for replication of data. A distance of 25-30 kms separates the t
wo centers and they are linked with two 34 Mbps leased lines. To ensure reliabil
ity and 24x7 availability, the leased lines pass through separate exchanges.
Before the data moves on to the leased lines, it passes through two CNT storage
directors that convert this data into WAN-related traffic before it is sent on t
he leased line to the other data center. The high-speed leased lines make it pos
sible to synchronize data in real-time between the two centers. Hardware at both
these sites varies from low-end NT servers to the high-end SUN E 10K along with
12 terabytes of data storage at each end connected through a SAN. The group's f
acilities management team manages over 9,500 desktops, 500 servers and works aro
und the clock. CA Unicenter is used for managing the helpdesk, desktops and serv
ers, asset management, software delivery and remote control. Unix is the preferr
ed OS for most of the hardware while most of the databases use Oracle with a few
on Sybase and MS SQL. Over 200 databases are supported with 24x7 processing. Th
e stateof-the-art technology architecture adopted by ICICI Bank needed robust se
curity, and this was
10

designed by qualified experts from its Systems Security Cell. This security desi
gn includes preparation, implementation and maintenance of the Systems Security
policies and procedures across all systems, ensuring general user awareness abou
t these policies and enforcing the policies through systems audits. The security
cell has developed several tools, which are the first of its kind to address se
veral vulnerabilities on Unix, NT and MS-Exchange. The system security is audite
d by KPMG. Solution by Infosys One of the biggest challenges for Finacle was ens
uring straight through processing (STP) of most of the financial transactions. W
ith the ICICI group having several companies under its umbrella, Finacle needed
to seamlessly integrate with multiple applications such as credit cards, mutual
funds, brokerage, call center and data warehousing systems. Another key challeng
e was managing transaction volumes. ICICI Bank underwent a phase of organic and
inorganic growth, first by acquiring Bank of Madura followed by a reverse merger
of the bank with its parent organization, ICICI Limited. The scalable and open
systems based architecture, enabled Finacle to successfully manage the resultant
increase in transaction levels from 400,000 transactions a day in 2000 to nearl
y 2.1 million by 2005 with an associated growth in peak volumes by 5.5 times. Wi
th Finacle, the bank currently has the ability to process 0.27 million cheques p
er day and manage 7000 concurrent users.
Over the years, the strategic partnership between ICICI Bank and Infosys that st
arted in 1994 has grown stronger and the close collaboration has resulted in man
y innovations. For instance, in 1997, it was the first bank in India to offer In
ternet banking with Finacles e-banking solution
11

and established itself as a leader in the Internet and eCommerce space. The bank
followed it up with offering several e-Commerce services like Bill Payments, Fu
nds Transfers and Corporate Banking over the net. The internet is a critical ele
ment of ICICI Banks award winning multichannel strategy that is one of the main e
ngines of growth for the bank. Between 2000 and 2004, the bank has been able to
successfully move over 70 percent of routine banking transactions from the branc
h to the other delivery channels, thus increasing overall efficiency. Currently,
only 25 percent of all transactions take place through branches and 75 percent
through other delivery channels. This reduction in routine transactions through
the branch has enabled ICICI Bank to aggressively use its branch network as cust
omer acquisition units. On an average, ICICI Bank adds 300,000 customers a month
, which is among the highest in the world.
12

Supporting Tools and Techniques:

Finacle a core banking and universal banking solution from Infosys The network f
ollows a hub and spoke architecturea mix of VSATs (Very small aperture terminal)
, leased lines, ISDN and radio links. It has around 800 leased lines, about 600
VSATs, approximately 800 ISDN lines and multiple 34 Mbps lines. UNIX is the pref
erred OS for most of the hardware while most of the databases use Oracle with a
few on Sybase and MS SQL.

13

Impact of the project as is: and "to be":

Earlier, the traditional systems at ICICI Bank were very centric to the branch.
For example a server at New Delhi was specific to the branch in that city; the A
TMs were standalone catering only to the city branch. The banking transactions w
ere thus limited to the respective branch offices as customer data was not avail
able in other branches. This made banking a limited service and very branch spec
ific. ICICI realized the importance of offering nationwide banking but this woul
d be possible only by having a centralized data repository. But, later using the
support of companies like Infosys, Oracle, SYBASE, SAS it implemented such a sy
stem which centralized applications for anywhere banking
14

Conclusion and Recommendations:

ICICI Bank has grown immensely over a period of time. First time in history a pr
ivate bank has merged a public sector bank i.e. ICICI Bank announced merger with
Bank of Rajasthan. On 23 May ICICI Bank announced merger with Bank of Rajasthan
with it through share-swap in a noncash deal that values the Bank of Rajasthan
at about Rs 3,000 crore. Each 118 shares of Bank of Rajasthan will be converted
into 25 shares of ICICI. It is said that this merger will also expand ICICI Bank
s branch network by 25%. ICICI Bank is also carrying out its activities in Rura
l Areas by helping SHGs (Self Help Groups) and in other microfinance acitivities
. Certain recommendations are as follows:
The ICICI VSAT network is large, with
almost a thousand nodes. Keeping it going turned out to be an even bigger challe
nge for the group. The entire network is monitored from one center. Any error in
the network at any point is rectified in a short span of time and the system is
up and running with minimum downtime. ICICI must have a proper control and look
over this issue ICICI Banks name comes in various controversies than any other b
ank mainly the method of recovery. This may hinder the BPR process further in fu
ture if the bank gets into any type of legal case. To avoid this ICICI Bank must
follow the rules and regulations.

15

Bibliography:
Business Process Reengineering: Text And Radhakrishnan/balasubramanian Business
Process Reengineering By Markus Slamanig
http://www.icicibank.com/
Cases
By
Radhakrishnan,
http://www.infosys.com
http://www.google.co.in/
16