A Project Report

On
Market potential for ICICI banks Salary Accounts in
Bangalore City

At

ICICI Bank Ltd .

Submitted by
VEENA CHOPADE
Reg No: MBA 03003012
Under the guidance of
Dr. D.N.S Kumar
&
Mr. Girish Hegde

KLSs INSTITUTE OF MANAGEMENT EDUCATION

AND RESEARCH
BELGAUM-590006

CONTENTS

1. Executive summary------------------------------------------------------ 1 6
2. Introduction ---------------------------------------------------------------

11
3. History of

ICICI----------------------------------------------------------12

14
4. Company Profile--------------------------------------------------------- 14
54
5. Design of the study------------------------------------------------------ 55
6. Research Analysis-------------------------------------------------------

56

65
7. Conclusion &Suggestions----------------------------------------------

66

67
8. Bibliography-------------------------------------------------------------- 68

9. Annexure------------------------------------------------------------------ 69
70

EXECUTIVE SUMMARY

RESEARCH OBJECTIVE
To ascertain the market potential for ICICI banks Salary Accounts in Bangalore
City.
SUB-OBJECTIVES:

To know the awareness level of The ICICI banks Salary Accounts in Bangalore
City.

To determine the (percentage) market share of ICICI Bank.

To know the satisfaction level of the corporate with respect to the services offered
by different banks Salary Accounts in Bangalore city.

To find out the key causes for dissatisfaction.

To find the potentiality of routing corporate salary through ICICI Bank.

Scope of the study:

This study is aimed towards the market potential of corporate salary account provided by
the ICICI Bank ltd. The study is contender towards the value-added feature of salary
account product of ICICI Bank. The study doesnt deal with the other financial product

offered by bank only products offer by retail channel group. Hence the study is limited to
the above
Place of research:
-

Bangalore city.

Research Methodology
Since the research was on the salary account product, for that the sample has been taken
out from the different industrial area in Bangalore city. The sample has been categorized
based on the geographical and demographical characters. As we know salary account
product is meant for working class people, so sample has been taken from working class
people only.
Before starting the research work, information from all the banks with regard to salary
account product has been collected. After getting this secondary information
questionnaire has been prepared for approaching the working class people. At the same
time some of the web sites have been used to get the additional information regarding
salary account product.

Research Design

a)

Type of Research Study: A social research on Financial activity for

economic development using data collected from Respondents as primary data
and theoretical data as secondary data.

b)

Tool for Collection Data: Structured Questionnaire both for the members of
the company and the company.

c)

Sample Design: Selected Targeted Company, i.e., PCPL and 50 Respondents

selected as Random Sample Method.

d)

Method of Collecting Data: Interview method and investigative met

e)

Method of Analysis: Quantitative and Descriptive Analysis

FINDINGS AND OBSERVATIONS

1. TOTAL SALARY UPLOAD ACCORDING TO AREA WISE

INFERENCE: The Electronic City and White Field contributes 40% of the total salary
up-load in the Bangalore City, so they become the crucial places to be concentrated.
2.BREAK UP OF BANKS PROVIDING CORPORATE SALARY ACCOUNT
DIFFERENT INDUSTRIAL AREAS
INFERENCE:
Following are the banks which have highly penetrated the market in salary accounts
apart from ICICI.
Sl.No.

AREA

BANK

1.

M. G. Road

Citibank

IN

2.

Bommasandra

Canara bank

3.

Jigani

Corp bank

4.

Hoskote

SBI

5.

Richmond

Citibank

6.

Yelahanka

Citibank

7.

Indiranagar

Citibank

8.

Infantry road

SBI

9.

Electronic city

SBI

10.

Whitefield

ABN Amro

3. SATISFACTION LEVEL WITH EXISTING BANK

INFERENCE: 79% of the companies are satisfied with the services provided by their
existing banker where as the 21% of the companies are not satisfied, which will be the
most crucial customers which can be materialized.

4. CAUSES FOR DISSATISFACTION

INFERENCE: The major cause of dissatisfaction is the after sale service. Therefore
feedback from the corporate regarding the service provided to them on the periodic basis
necessary.
5. AWARENESS OF ICICIS CORPORATE SALARY ACCOUNT
INFERENCES: Awareness is very low in Jigani and Bommasandra industrial area.
These areas have got some good companies like TATA ADVANCED MATERLIALS,
OTIS, and CROMPTON GREAVES, which are to be tapped.
6. WILLINGNESS TO ROUTE EMPLOYEE SALARY THROUGH
ICICISCORPORATE SALARY ACCOUNT

INFERENCES: The companies which want to definitely route their salary through
ICICIS corporate salary account contribute 5% and companies which probably want to
route to rote their salary through ICICIS salary account contribute 17% , these
companies will be the potential market for ICICI.
CONCLUSION AND SUGESTIONS
1. Since Whitefield and Electronic city are identified as crucial areas in terms of
total salar upload; ICICI bank has to concentrate maximum on new acquisitions
to compete with the existing ABN AMRO and SBI banks in order to penetrate the
market.
2. Out of 10 industrial areas Citibank leads other banks in 4 industrial areas in terms
of acquiring large customer base. Hence ICICI bank should keep continuous
track of fresh recruitments and come up with competitive offerings and features
to attract these fresh employees to the companies in these areas.
3. Since 21% of the companies are not satisfied with other banks, these will be the
most crucial customers for ICICI. Hence ICICI has to clearly understand and
address the needs of these corporate to enhance its market share.

4. It would be feasible to set up an ATM counter in Jigani Industrial area due to the
following reasons:
a.

It has a considerable total salary upload of 1.5 crores per month.

b.

Only Corp bank has setup an ATM over there, and most of the corporate are
not satisfied with its services.

c.
d.

There is no branch of any bank nearby Jigani and surrounding 10Kms.

There are some good companies like Tata Advanced materials, OTIS,
Crompton Greaves, which contribute more than 80% of salary upload.

5.

The major cause of dissatisfaction is poor after sale service. Therefore ICICI
bank has to get periodic feedback from the corporate and provide quality service.

6.

Awareness is very low in Jigani and Bommasandra industrial area.

Therefore:

Promotional activities like presentations for employers and employees should be

conducted in the potential organizations.

Seminars should be organized where in all HR and Finance Managers of potential

corporate should be invited and awareness on e-age banking should be done.

7.

Since 57% of the corporate are unsure to route their salary accounts through
ICICI bank, ICICI has to keep a continuous track to convince and convert them
to potential customers.

LIMITATIONS OF THE RESEARCH

The Research is limited only to Bangalore City.
The survey was conducted on very small part of the respondents, though they
have been categorized through geographical and demographical factors , The
sample was very small in nature..

 Due to time constraint, covering of all areas was not possible; However important
Industrial areas and most crowded areas were covered like Electronic city,
Richmond Tower, M.G Road, Indira Nagar, etc.

Indian Banking Sector

Banking in India has its origin as early as the vedic period. It is believed that the
transistion from money lending to banking must have occurred even before Manu, the
great Hindu Jurist, who has devoted a section of his work to deposits and advances and

laid down rules relating to rates of interest. During the Mogul period, the indegenous
bankers played a very important role in lending money and financing foreign trade and
commerce. During the days of the East India Company, it was the turn of the agency
houses to carry on the banking business. The General Bank of India was the first Joint
Stock Bank to be established in the year 1786. The others which followed were the Bank
of Hindustan and the Bengal Bank. The Bank of Hindustan is reported to have continued
till 1906 while the other two failed in the meantime. In the first half of the 19 th century
the East India Company established three banks; the Bank of Bengal in 1809, the Bank
of Bombay in 1840 and the Bank of Madras in 1843. These three banks also known as
Presidency Banks, were independent units and functioned well. These three banks were
amalgamated in 1920 and a new bank, the Imperial Bank of India was established on
27th January 1921. With the passing of the State Bank of India Act in 1955 the
undertaking of the Imperial Bank of India was taken over by the newly constituted State
Bank of India. The Reserve Bank which is the Central Bank was created in 1935 by
passing Reserve Bank of India Act 1934. In the wake of the Swadeshi Movement, a
number of banks with Indian management were established in the country namely,
Punjab National Bank Ltd, Bank of India Ltd, Canara Bank Ltd, Indian Bank Ltd, the
Bank of Baroda Ltd, the Central Bank of India Ltd. On July 19, 1969, 14 major banks of
the country were nationalised and in 15th April 1980 six more commercial private sector
banks were also taken over by the government. Today the commercial banking system in
India may be distinguished into
Public Sector Banks
a. State Bank of India and its associate banks called the State Bank group
b. 20 nationalised banks
c. Regional Rural Banks mainly sponsored by Public Sector Banks

Private Sector Banks

a. Old generation private banks

b. New generation private banks

c. Foreign banks in India
d. Scheduled Co-operative Banks
e. Non-scheduled Banks

CO-OPERATIVE SECTOR
The co-operative banking sector has been developed in the country to the suppliment the
village money lender. The co-operatiev banking sector in India is divided into 4
components
1. State Co-operative Banks
2. Central Co-operative Banks
3. Primary Agriculture Credit Societies
4. Land Development Banks
5. Urban Co-operative Banks
6. Primary Agricultural Development Banks
7. Primary Land Development Banks
8. State Land Development Banks
DEVELOPMENT BANKS
1. Industrial Finance Corporation of India (IFCI)
2. Industrial Development Bank of India (IDBI)
3. Industrial Credit and Investment Corporation of India (ICICI)
4. Industrial Investment Bank of India (IIBI)
5. Small Industries Development Bank of India (SIDBI)
6. SCICI Ltd.
7. National Bank for Agriculture and Rural Development (NABARD)
8. Export Import Bank of India
9. National Housing Bank

Banking System In India

Introduction
The Reserve Bank of India (RBI) is India's central bank. Though the banking industry is
currently dominated by public sector banks, numerous private and foreign banks exist.
India's government-owned banks dominate the market. Their performance has been
mixed, with a few being consistently profitable. Several public sector banks are being
restructured, and in some the government either already has or will reduce its ownership.
Banking
India has an extensive banking network, in both urban and rural areas. All large Indian
banks are nationalized, and all Indian financial institutions are in the public sector.
Private and foreign banks
The RBI has granted operating approval to a few privately owned domestic banks; of
these many commenced banking business. Foreign banks operate more than 150 branches
in India. The entry of foreign banks is based on reciprocity, economic and political
bilateral relations. An inter-departmental committee approves applications for entry and
expansion.
RBI banking
The Reserve Bank of India is the central banking institution. It is the sole authority for
issuing bank notes and the supervisory body for banking operations in India . It
supervises and administers exchange control and banking regulations, and administers the
government's monetary policy. It is also responsible for granting licenses for new bank

branches. 25 foreign banks operate in India with full banking licenses. Several licenses
for private banks have been approved. Despite fairly broad banking coverage nationwide,
the financial system remains inaccessible to the poorest people in India.

Indian banking system

The banking system has three tiers. These are the scheduled commercial banks; the
regional rural banks which operate in rural areas not covered by the scheduled banks; and
the cooperative and special purpose rural banks.
Scheduled and non scheduled banks
There are approximately 80 scheduled commercial banks, Indian and foreign; almost 200
regional rural banks; more than 350 central cooperative banks, 20 land development
banks; and a number of primary agricultural credit societies. In terms of business, the
public sector banks, namely the State Bank of India and the nationalized banks, dominate
the banking sector.
Private Banks In India
The RBI issued guidelines regarding the formation and functioning of private sector
banks in January 1993. These guidelines are as follows
1. The banks shall be governed by the provisions of The Reserve Bank of India Act,
1934 The Banking Regulations Act, 1949 Other relevant statutaries.
2.

Private sector banks are required to be registered as public limited companies in

India.

3. The authority to grant a license lies with the RBI .

4. The shares of banks are required to be listed on stock exchanges.
5. Preference will be given to those banks whose headquarters are proposed to be
located in a centre which does not have headquarters of any other bank.

6. Maximum voting rights of an individual shareholder would be limited to 1% of total

voting rights.
7. The new bank would not be allowed to have as its director any person who is already
a director in a banking company.
8. The bank will be subject to prudential norms in respect of banking operations,
accounting policies and other policies, as laid down by RBI. The bank will be
required to adhere to the following: Minimum paid up share capital of Rs. 1 bln.
Promoters' contribution as determined by the RBI Capital adequacy of 8% of the risk
weighted assets Single borrower and group borrower exposure limits in force Priority
sector lending Export credit Loan policy within overall policy guidelines laid down
by the RBI.
9. The banks will be free to open branches anywhere once they satisfy the capital
adequacy and prudential accounting norms.
10. The banks would not be allowed to have investments in subsidiaries, mutual funds
and portfolio investments in other companies in excess of 20% of the banks' own paid
up capital and reserves.
11. The banks would be required to use modern infrastructural facilities in office
equipment, computer, telecommunications etc.
Policy for Investment made in Private Banks
New private sector banks have not been allowed to be set up in India since 1969. With a
view to increasing competition in the banking industry and in line with the
recommendations of the Narasimhan Committee, the Government has now allowed the
entry of such banks.
Close monitoring by RBI
However, the freedom of the entry into the banking sector will be carefully managed by
the RBI. The RBI will grant approvals for entry of private sector banks provided such
banks offer competitive, efficient and low cost financial intermediation services, result in

upgradation of technology in the banking sector, are financially viable and do not resort
to unfair means like preemption and concentration of credit, monopolization of economic
power, cross holding with industrial groups etc.
Foreign Investment in Banking Sector
Under the scheme, Non Resident Indians are allowed to have primary equity in a new
banking company to the extent of 40%. In the case of a foreign banking company or a
finance company acting as a technical collaboration or a co-promoter, equity participation
is restricted to 20%.

INTRODUCTION

History of ICICI

1955
The Industrial Credit and Investment Corporation of India Limited (ICICI) incorporated
at the initiative of the World Bank, the Government of India and representatives of Indian
industry, with the objective of creating a development financial institution for providing
medium-term and long-term project financing to Indian businesses. Mr.A.Ramaswami
Mudaliar elected as the first Chairman of ICICI Limited
ICICI emerges as the major source of foreign currency loans to Indian industry. Besides
funding from the World Bank and other multi-lateral agencies, ICICI also among the first
Indian companies to raise funds from International markets.
1956 : ICICI declared its first Dividend at 3.5%.
1958 : Mr.G.L.Mehta was appointed the 2nd Chairman of ICICI Ltd.
1960 : ICICI building at 163, Backbay Reclamation was inaugurated.
1961 : The first West German loan of DM 5 million from Kredianstalt was obtained by
ICICI.
1967 : ICICI made its first debenture issue for Rs.6 crore, which was oversubscribed.
1969 : First two regional offices in Calcutta and Madras were opened.
1972 : Second entity in India to set-up merchant banking services.
1977 : ICICI sponsors the formation of Housing Development Finance Corporation.
Managed
its first equity public issue.
1978 : Mr. James Raj appointed as the fourth Chairman of ICICI.
1979 : Mr.Siddharth Mehta appointed as the fifth Chairman of ICICI.
1982 : Becomes the first ever Indian borrower to raise European Currency Units.
ICICI commences leasing business.
1984 : Mr. S. Nadkarni appointed as the sixth Chairman of ICICI.
1985 :Mr.N.Vaghul appointed as the seventh Chairman and Managing Director of ICICI.
1986 : ICICI first Indian Institution to receive ADB Loans. First public issue by an Indian
entity in the Swiss Capital Markets.

ICICI along with UTI sets up Credit Rating Information Services of India
Limited, (CRISIL) India's first professional credit rating agency.
ICICI promotes Shipping Credit and Investment Company of India Limited.
(SCICI)
The Corporation made a public issue of Swiss Franc 75 million in Switzerland,
the first public issue by any Indian equity in the Swiss Capital Market.
with Commonwealth Development Corporation (CDC), the first loan by CDC for
financing projects in India.
1988 ICI promotes TDICI - India's first venture capital company.
1993 : ICICI sets-up ICICI Securities and Finance Company Limited in joint venture
with J.
P. Morgan.
1994 : ICICI sets up ICICI Asset Management Company.
1996 : ICICI becomes the first company in the Indian financial sector to raise GDR.
ICICI announces merger with SCICI.
Mr.K.V.Kamath appointed the Managing Director and CEO of ICICI Ltd
1997 : ICICI was the first intermediary to move away from single prime rate to three-tier
prime rates structure and introduced yield-curve based pricing.
The name "The Industrial Credit and Investment Corporation of India Limited "
was changed to "ICICI Limited".
ICICI announces takeover of ITC Classic Finance.
1998 : Introduced the new logo symbolizing a common corporate identity for the ICICI
Group. ICICI announces takeover of Anagram Finance.
1999 : ICICI launches retail finance - car loans, house loans and loans for consumer
durables
ICICI becomes the first Indian Company to list on the NYSE through an issue of
American Depositary Shares.

2000 :ICICI Bank becomes the first commercial bank from India to list its stock on
NYSE.
ICICI Bank announces merger with Bank of Madura.
2001 : The Boards of ICICI Ltd and ICICI Bank approved the merger of ICICI with
ICICI
Bank.
2002 :Moodys' assign higher than sovereign rating to ICICI.
Merger of ICICI Limited, ICICI Capital Sercvices Ltd and ICICI Personal
Financial Services Limited with ICICI Bank.

ICICI SECURITIES

ICICI GROUP
ICICI PRUDENTIAL

ICICI VENTURE

ICICI LOMBARD

ICICI Prudential :
ICICI Prudential Life Insurance Company 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 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's equity base stands at Rs. 6.75 billion with ICICI Bank and Prudential
plc holding 74% and 26% stake respectively. In the year ended March 31, 2004, the
company had issued over 430,000 policies, for a total sum assured of over Rs 8,000 crore
and premium income in excess of Rs. 980 crore. The company has a network of about
30,000 advisors; as well as 12 bancassurance tie-ups. Today the company is the #1
private life insurer in the country.

 Savings Plans
Protection Plans
Child Plans
Retirement Plans
Investment Plans
Group Plans
Add-on Benefits

ICICI Securities :

ICICI Securities Limited (i-SEC) is a wholly owned investment-banking subsidiary of

ICICI Limited (ICICI). ICICI is the only non-Japanese Asian financial institution to be
listed on the New York Stock Exchange. ICICI Securities was formed on 22nd feb 1993,
when ICICI's Merchant Banking Division was spun off into a new company, ICICI
Securities today is India's leading Investment Bank and one of the most significant
players in the Indian capital markets. ICICI Securities Research Reports , Compendia,
Updates, I-BEX and Sovereign Bond Index, have become industry standards, sought after
by finance, business and reputed publications alike. The range of products offered by
ICICI Securities includes:

Investment Banking -Mergers and Acquisitions, Equity, Bidding

Fixed Income - Primary Dealership, Debt Research

Equities - Lead Management, Underwriting, Syndication, Private Equity

Placement, Sales, Trading, Broking, Sectoral and Company Research.

ICICI Securities continues to sustain a steady rate of growth by offering the most
extensive range of services combined with unrivalled standards of professionalism.

ICICI Lombard :
ICICI Lombard General Insurance Company Limited is a 74:26 joint venture between
ICICI Bank Limited, India's second largest bank and US$ 26 Billion Fairfax Financial
Holdings Limited, diversified in financial services, 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 combines the forte of two of the most trusted names in the financial
sector. ICICI Bank's strong brand equity, extensive distribution network and sound
technological infrastructure to serve customer needs along with Lombard Canada's
domain knowledge, product innovation and business processes based on international
practices in the insurance business.
To the Indian consumer this means the security of strong parentage with access to a range
of customised and innovative insurance solutions supported by internationally
benchmarked service levels.
Why ICICI Lombard ?
We bring the following value proposition to our customers:
1. Risk Advisory Services
2. Simpler & Faster Documentation
3. Seven Days For Claims Settlement

4. Re-insurance
5. Our Team Growth

Comprehensive Product Range

ICICI Lombard has a major presence in the following insurance segments:

Personal solutions - Motor, Home, Personal Accident cover
Business solutions - Fire, Inland transit, Engineering, Performance Guarantee,
Merchant cover, Marine and Aviation Hull, etc.
Travel and Health solutions
Project solutions - Contractor's / Industrial / Erection All Risk, etc.
Liability solutions (Directors & Officer's Liability, Errors & Omissions, Product
Liability, Public Liability, Professional Indemnity)
Exports solutions (Export Import, Export Credit)
Rural solutions (Tractor, Weather Index, Janata Personal Accident)
ICICI Lombard has already introduced a slew of products and has emerged as a major
player in the corporate and retail segments driven by a well-balanced portfolio. The
Company has some of the largest industrial houses and companies representing diverse
industries as its customers.

ICICI Venture :
ICICI Venture, incorporated in 1988, is the most experienced and largest private equity
and venture fund management company in India with funds currently under management
in excess of Rs.20 billion (USD 400 million).
Over the last 15 years, ICICI Venture has been successful in identifying trends well ahead
of the curve; be it retail, media and entertainment, information technology, real estate or
pharmaceuticals and biotechnology. During this period ICICI Venture launched and
managed

8 funds with a corpus exceeding Rs. 20billion (USD 400 million). Each fund had a
distinct investment theme and ICICI Venture today has some of the best known and
managed companies in India in its portfolio. Herein ICICI Venture has followed the
philosophy of being a multi-sector player ensuring an optimum balance of risk and return
to its investors.
ICICI Venture has the distinction of managing a large number of exits in the country.
With over 100 liquidity events, the organisation has reaped rich experience and is well
positioned to handle IPOs, strategic sale and/or mergers.
ICICI Venture has a wide network of third party investors, which include domestic
investors such as public sector banks, financial institutions and insurance companies. A
significant portion of the fund's corpus is also from international development financial
institutions and international funds.
The company has over 25 qualified professionals with experience across sectors and
functions. The capabilities of the team, structure of the organisation, emphasis on value

creation and performance evaluation matrices enable ICICI Venture to extract superior
returns from its investments.

COMPANY PROFILE
ICICI Bank was originally promoted by the erstwhile ICICI Ltd and the erstwhile SCICI
Ltd . It was incorporated as a company under the companies Act, 1956 On 5 th January,
1994 and received the certificate of commencement of business on 24 th February, 1994. It
was granted a license to carry on banking business in India by the RBI vide its letter
No.DBOD (AH) No.3085/03.02.24B/94 dated 17th May 1994. The operations of ICICI
Bank are mainly governed by the provision of the banking regulation Act, 1934 as a
Scheduled Bank vide Gazette of India notification dated 5th July 1994. ICICI Bank was
founded with the objective of providing quality banking services using state-of-the-art of
technology. ICICI Bank has placed great emphasis on the need for competitive, efficient
and low cost financial intermediation. ICICI Bank conducts banking operations in an

organized, systematic and operationally sound manner. Towards this end, it has set up a
fully computerized environment with state-of-the-art technology at its offices and
continuously upgrades its strong systems and procedures with special emphasis on risk
management.
ICICI Bank is India's second-largest bank with total assets of about Rs.112,024 crore and
a network of about 475 branches and offices and about 1790 ATMs. 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,
asset management and information technology. ICICI Bank's equity shares are listed in
India on stock exchanges at Chennai, Delhi, Kolkata and Vadodara, the Stock Exchange,
Mumbai 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 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 transactionbanking 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. Shareholders of ICICI and ICICI BANK approved
the merger 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.

visioN of icici
To be the preferred brand for total financial and banking solutions for both
Corporate and individuals
In line with its vision statement, ICICI has capitalized on market opportunities to stretch
the borders of its business, and has evolved from a project finance institution to

insurance, personal financial services, a financial supermarket providing end-toinvestment banking and venture capital, end financial services to corporate and retail
providing fulfillment to practically all the customers. Today, the ICICI Group offers
financial needs of individuals and products and services in the areas of companies
corporate banking and commercial banking.

MISSION OF ICICI

ICICI bank as an organization has been built on the principles of professionalism, ethics
and financial expertise. The Bank believes that its existence and development are closely
interlinked with its ability to serve both the corporate and retail customers. This belief has
evolved into its corporate philosophy of growth, innovation and stability.

The bank aims to provide the benefits of universal banking to its corporate
and retail clients and its investors.

The goal is to ensure that dealing with ICICI Bank is safe, simple and
efficient.

ICICI Bank attempts to pursue growth and innovation without

compromising on its stability.

OBJECTIVES OF ICICI
1. To establish and carry on business of banking in any part of India or outside India.
2. To carry on the business of accepting, for the purpose of lending or investments,
of deposits of money repayable on demand or otherwise and withdraw able by
cheque, draft, order or otherwise.

3. To borrow, raise or take up money, lend or advance money with or without

interest either upon or without security.
4. To draw, make, execute, issue, endorse, negotiate, accept, discount, buy, sell,
collect and deal with bill of exchange, hundi, promissory notes, coupons, drafts,
bills of lading, railway receipts, warrants, debentures, bonds, mortgage-backed
securities, letter of credit or obligations, certificate, scripts and other instruments
and securities whether transferable or negotiable or mercantile or not.
5. To grant and issue letter of credit, travelers cheque and circular notes, buy sell
and deal in bullion and specie.
6. To receive all kinds of bonds, scripts or valuables on deposits or for safe custody
or otherwise, provide safe deposit vaults, collect and transmit money, negotiable
instruments and all securities.
7. To act as a foreign exchange dealer and to buy sell or otherwise deal in all kinds
of foreign currencies.
8. To carry on activities of bill discounting, rediscounting bills, factoring, dealing in
commercial papers, treasury bills, certificate of deposits and other financial
instruments.
9. To act as an agent for any government or local authority or any other person or
persons carrying on agency business.
10. To contract for public and private loans and advances and negotiate and issue the
same.
11. To carry on and transact every kind of guarantee and indemnity business.
12. To undertake and execute trusts and the Administration of estates as executor or
trustee.
13. To act as registrar and transfer agents and registrar to the issue, issue agents and
paying agents.
14. To issue Debit or Credit cards to the customers or any other person.

PRODUCTS AND SERVICES OFFERED BY ICICI BANK

RETAIL PRODUCTS
1) Liability Products

ROAMING CURRENT ACCOUNT

A current account that goes along wherever your business takes you. Only roaming
current account from ICICI Bank travels the distance with your business. With advanced
technology features like multi-cheque facility and Anywhere Banking, the Roaming
Current Account is designed to the business requirements. It also gives the freedom to
choose a Quarterly Average Balance to suit business needs. You can access your account
at over 475-networked branches across the country. Some of the other benefits are

Multi City Cheque facility

Anywhere Banking Facility

Upcountry Cheque Collection

Pay Orders and Demand Drafts

Phone Banking Facility

Doorstep Banking Facility

Internet Banking Facility

Debit/ATM Card

Mobile Banking Facility

SAVINGS ACCOUNT

ICICI Bank offers a power packed savings account that offers a host of convenient
features. ICICI Bank is one o the largest banking networks in the country with over 475
branches, 1790 ATMs and presence in, over 280 cities across the country. You can access
your account from any of the ICICI Bank ATMs across the city or the country 24 hours a
day, 7 days a week.
With ICICI Bank, you can access a vast majority of services through the ATM, phone and
the Internet like ordering a chequebook, viewing your balance, etc. Some of the added
benefits, which the customer can enjoy, are

Auto FD

Bill Payment

Investment Services

Free personalized chequebook

SALARY ACCOUNT

This account is for employees of companies, organization etc. this account can able to
customize to suit individual requirements. Any company with more than 10 employees
can enroll. With ICICI Bank Salary Accounts customers will enjoy the convenience of

Having the largest network o ATM at the command,

Free domestic debit card,

Free 24 hour Phone Banking

Free Internet Banking

REIMBURSEMENT ACCOUNT

The company can opt to disburse the expenses for travel, food etc through the
reimbursement account. It can be simultaneously opened along with ICICI Bank Salary
Accounts and linked to the same debit card.
WELCOME KIT

ICICI Bank Salary Accounts customers can have the facility of filling up the form and
getting their chequebook and debit card instantly, across the counter.
FIXED DEPOSITS
ICICI Banks fixed deposit gives a combination of unbeatable features like Safety,
Flexibility, Liquidity and Returns. Customers have to design a fixed deposit that provides

him the flexibility to customize his investment plans, at competitive interest rates.
Duration of the investment an also be decided by the account holder.
Pre-mature withdrawal in units of Rs1000 is also allowed. The balance amount earns the
original rate of interest. No penalty is levied on premature withdrawal from a single
deposit of less than Rs15 lakh. The withdrawn amount will earn interest for the period for
which it is held with the bank. Customer can take loan against the fixed deposit. The loan
will be available for 85% of the fixed deposit value, at a nominal rate above the fixed
deposit.

Bank @ campus
Thanks to Bank @ campus, ICICI Banks Student Banking Service, Student can now
look forward to the new face that bank have given to banking his/her computer monitor.
Now student can surf the Net and access all the details of his/her account at the click of a
mouse. No need to visit the bank branch at all. Some of the additional benefits are
Free personalized chequebook
Free 24 hours Phone Banking
Free ICICI Bank N-cash Debit card
Free transfer of funds into his/her account from any ICICI Bank Account.
Annual statement of accounts
Kid-e-bank ACCOUNT

The product teaches children banking and Internet transaction through an interactive
online interface. It makes banking a pleasure and of course teaches your child to manage
their personal finances.
2) Asset Products
CREDIT CARDS

ICICI Bank offers the most powerful co-branded card, the ICICI HPCL card with
unmatched features and benefits. Besides this, they offer 3 types of credit cards to choose
from Solid Gold (the global card), Sterling Silver (the family card), and True Blue (the
value or money
card). ICICI Bank credit cards also provide a host of other services like dial-a-draft, cash
advance facility, Internet banking, travel benefits etc.
HOME LOANS
ICICI Bank offers you the most attractive interest rates, along with complete doorstep
services. Loans ranging from Rs1 lakh to Rs1 crore are available, with repayment period
upto 30 years. Each home loan comes with a free accident insurance cover. Moreover no
guarantors are required, and there no charges for the part pre-payment.

PERSONAL LOANS

An all purpose customer friendly loan with no security, collateral or guarantors available
from as low as Rs.20000 to Rs.5 lakh with a wide range of repayment tenures.
CAR LOANS

ICICI Bank Car Loans are tailor made to suit all customers needs. Customer can avail of
finance up to 90% of the value of the car. Most attractive interest rates coupled with
customized loan options and tenures ensure the best possible deals for all customers.
CONSUMER DURABLE LOANS

Customer can able to avail loans for durable products like color TVs, refrigerators,
washing machines, microwave ovens, or music systems. A minimum loan of Rs.7000
repayable in convenient options of 6 to 36 monthly installments is offered.

LOAN AGAINST SECURITIES

Loans by the way of an overdraft facility against the pledge of demat securities provided
by ICICI Bank. The best interest rates and loans of value added services come with this
loan.

TWO WHEELER LOANS

ICICI Bank provides customized options to ensure that customer get the best value with
great ease. Customer can able to avail upto 85% of finance.
3) Investment Services
ICICI Direct.com
This offers investment and trading online in NSE and BSE to carry out delivery based or
margin trading. Investments in IPOs, Mutual Funds, Futures and Options are available.
DEMAT ACCOUNT

A Demat account will ensure transaction in paperless shares, instantaneously in a safe and
secure manner.
GOI RELIEF BONDS
RBI tax relief bonds are just the right investment when thinking o tax-free income.
MUTUAL FUNDS
Mutual Funds that cater to every need, whatever the financial position, risk tolerance and
return expectations.

4) Payroll and Benefit Management

ICICI Bank provides you a single window to outsource companys requirements o
pension and payroll management through tie-ups with India Life and Cross Domain.

BUSINESS GROUPS OF ICICI BANK

ORGANISATIONAL EXCELLENCE GROUP (OEG)

This group will be responsible for institutionalization of quality initiatives, viz., SixSigma, ISO and Security certification, Intra-Group Service Level Agreements (i.e., SLAs
between group companies of the merged entity). This Group will be responsible for
building skills in the Six-Sigma area, managing vendors, tracking projects, reporting
progress and value generated to the MD & CEO and replicating the successes across
ICICI Bank as well as group companies. The respective Business Groups will directly
initiate and manage their own internal projects and will provide periodic reports to the
OEG on progress of these projects
INTERNATIONAL BANKING GROUP (IBG)
As global banks expand their presence in India and target local customers it becomes
important for the bank to offer a complete value proposition its customer base that is
globally competitive. The primary task of the IBG is to develop and implement the global
components of the Universal Banking strategy. In addition to this, it seeks to pursue
opportunities in related areas such as Business Process Outsourcing (BPO), the primary
focus of which is to ensure that the bank could leverage the skills that it has built in these

areas. It also has the added benefit of allowing the bank to benchmark the quality of
services it offer to its own customers against global standards. IBG is in addition,
responsible for managing ICICI Group's international alliances and relationships
(excluding investor relationships).
TECHNOLOGY MANAGEMENT GROUP (TMG)
Technology Management Group would be the focal point for technology decisions for the
Group. TMG will:
1. Be responsible for architecting the technology strategy for ICICI Group.
2. Guide the Business Groups in defining & scoping projects and selecting appropriate
technology.
3. Identify and conceptualize ways in which new technology can be leveraged by the
Business Groups. .
4. Act as a bridge between the technology function in Business Groups and the vendors /
technology sources.
5. Lay down norms, standards and uniform policies in the area of technology and
leverage economies of scale.
Each of the business groups across the bank will continue to be responsible for the
identification of cutting edge technology solutions relevant for their respective businesses
but will evaluate and decide on adoption of these technologies only in consultation with
TMG. The respective Business Groups will also be responsible for project management
and the delivery of projects. TMG will directly handle only those projects that are ICICI
Group-wide initiatives such as EAI
DOMESTIC BANKING GROUP (DBG)
DBG comprises two key Groups, Retail Banking Group (RBG) and Wholesale Banking
Group (WBG) and seeks to implement the Universal Banking strategy of the ICICI

Group of companies with retail and wholesale customer bases respectively. While they
pursue distinct customer segment strategies, the two Groups will work closely with each
other, as a number of current and potential retail customers work with wholesale
customers and wholesale customers leverage on the retail branches (where wholesale or
SME divisions are not situated) and the leads from the retail business. In addition there
are several current and potential customer bases, which have overlapping needs. In the
case of the SME Group a more complex segmentation strategy is required since at the
margin the distinction between a wholesale customer and a retail customer could become
blurred.

RETAIL BANKING GROUP

The RBG has already demonstrated high growth capabilities in a variety of business
dimensions such as bank deposits, Internet banking, Credit & Debit Cards, Auto
financing and Mortgages and third party product distribution. The RBG is currently in
rapid investment and growth mode.

Over the next few years this business will de-risk our balance sheet (by significantly
diversifying our asset and liability base) and provide us with high quality earning streams
while simultaneously helping the bank erect formidable and defensible entry barriers
against strong domestic and international competitors.
The retail business is also poised to become the largest distribution powerhouse in the
country, by distributing a range of products, viz., third-party products, mutual funds,
insurance (life and non-life), pension products and bonds issued by the RBI and other
entities. It is hence essential to have an integrated distribution architecture, which while
meeting the business goals will deliver best in class service standards and thereby provide
the customer with seamless and integrated channels. It is also critical to leverage the
power of technology for customer reach and servicing.

One of the key drivers for the merger has been to achieve economies of scale and scope
for RBG by seeking to integrate many retail businesses in more than one Group
Company, into a consistent customer oriented architecture. However, we also nurse
aspirations of being leaders in each and every product segment that we operate without
any loss of the momentum that has already been built-up.
As a consequence, a more pragmatic approach has been adopted while designing the
current structure, while building a platform for steady migration to a completely customer
centric structure The following current and potential customers is part of RBG:
a) Individuals, HUFs, proprietors
(b) Societies, associations, club, including educational, religious, welfare, charitable
Associations etc.
(c) Provident funds with corpus under Rs. 10 bn
(d) All trusts (excluding mutual funds)
( e) Partnerships and corporates, both with net worth less than Rs. 5 bn
(f) Retail linked SMEs such as all dealerships of vehicles and consumer durables and
Builders
The RBG comprises the following functional groups:
(A) RETAIL ASSET PRODUCTS GROUP
(B) RETAIL CHANNELS AND LIABILITIES GROUP
(C) RETAIL OPERATIONS GROUP AND RURAL & MICRO BANKING GROUP
(D) RETAIL STRATEGY AND NEW PRODUCTS GROUP
(E) RETAIL CHANNEL INFRASTRUCTURE GROUP
(F) RETAIL TECHNOLOGY GROUP
RETAIL ASSET PRODUCT GROUP (RAPG)
The RAPG is responsible for the entire retail asset portfolio of ICICI Bank. It is

accountable for P&L, marketing & sales promotion, market share, growth, credit quality,
asset product development (including for NRI in coordination with IBG), third party
managed retail assets channel, asset products cross sell targets and relevant 5MB lending.
This Group also manages sales, collection agencies, CPA network, and dedicated
channels of retail assets like DSAs, dealerships, distributors, builders, merchants, and
manufacturer relationships. The Head of Cards is responsible for cards related products
for other Groups like 5MB, NRI etc. Mortgage business focuses on builder financing
home equity, reality funding and personal loans against property. This is essential to
achieve its growth plans for the mainstream, retail mortgage business. The mortgage
business manages relationship with all builders.
(a) Auto Finance
(b) Commercial Vehicles, Construction Equipment Financing, Farm Equipments,
Consumer Durable Financing, OE Financing
(c) Cards (to include credit, debit, smart cards, other payment solutions and merchant
acquiring business)
(d) Mortgage Finance
(e) Personal loans/loans against securities (LAS)
(f) Two wheeler Finance
(g) Collection, Credit and Risk

RAPG -Risk Division initiates new policies for all products, approve product variants
within preapproved limits, allocate approval authorities within the ambit of mother policy
and prepare and submit MIS reports. RCAG approves polices for all products, allocate
authorization limits, and carry out business review along with the Head ofRAPG.

RETAIL CHANNELS AND LIABILITIES GROUP (RCLG)

One of the key objectives of the merger is to ensure that we create a truly customer-

centric organization. The various channels of ICICI Bank and ICICI Caps is integrated
under this Group and will function as a single integrated network. To achieve customer
centricity, it is intended that the channels will essentially focus on three functions:
(a) Transaction Banking
(b) Sales and
( c) Customer Service
Transaction Banking will involve all the day to day banking unctions pf the channels.
Sales will include, sale o liability products, all third party products and cross sell of asset
products. Customer servicing will involve servicing of Domestic and NRI ustomers by
handling queries, complaints and requirements of customers across all retail products.
This Group will also manage distribution of depository accounts and Bonds. RCLG is
responsible for the targets of liabilities, Third-Party Products (TPPs), cross-sell, service
levels, channel cost and channel migration. It would also be responsible for providing the
required support to IBG for domestic sales, in branch service to NRI customers and
Private Banking for NRIs to facilitate meeting NRI targets.
The Customer Service Group is responsible for handling and quick resolution of
customer service issues across all retail products. This Group will also be responsible for
recommending specific process and systems improvements which have an impact on
customer service, carrying out customer satisfaction studies, managing service quality
audits etc.

RETAIL OPERATIONS & RURAL AND MICRO BANKINE GROUP: (ROG &
RMBG)
ROG is responsible for the following:
(a) Support business growth by managing the back office functions for all the channels,

liability and asset product Group

(b) Consolidate and centralize as many activities as possible, so as to derive economies of
scale and reduce operating costs
( c) Take off as much of operating load from the channels as possible and enable the
channel to concentrate more on sales and service.
(d) Provide interface to the channels for all the service quality related issues
The Retail Operations Group is organized as follows:
(a) Banking including NRI services
(b) Mortgages
( c) Other Retail Assets
(d) Bonds & Depository accounts
(e) Projects - For the implementation of Quality improvement, Cost reduction,
consolidation
of all retail operations and Vendor management.
RMBG is responsible for the following:
(a) Developing cost effective technology solutions for banking products and services in
rural and semi urban areas
(b) Formation of self-help groups (of women, traders etc.) and progressive farmers
groups, including providing micro credit to them.
(c) Partner with NGGs on a selective basis to enlarge ICICI Bank's reach and operations
without investment on infrastructure
(d) Collaborate with SIG
(e) Undertake other projects to enhance the quality of life of the rural poor.
RETAIL BANKING STRATEGY AND NEW PRODUCTS GROUP: (RSPG)
RSPG is responsible for supporting the ED on the Retail Banking Strategy. This Group

will constantly look for new customer and product segments, structure the appropriate
product offerings and bundle, product offerings to customer groups. This Group will scan
the market to identify unfulfilled customer needs and devise strategies and products to
leverage the business opportunities. The Bank's retail liability products including retail
bonds is developed by this Group (including for NRIs in coordination with IBG).
RETAIL CHANNEL INFRASTRUCTURE GROUP (RCIG)
RCIG is responsible for setting up retail channel assets (i.e.) branches, extension
counters, ATMs, call centres, retail offices, retail operations processing centres, kiosks
etc), upkeep & servicing of these assets, currency management, network & connectivity,
look-and-feel, security management for these assets and constantly look out for
enhancing the reliability of the retail channel assets.
For ATM channel this Group is responsible for its complete management, including the
quality of service delivered and maximizing revenue generation from this channel. This
Group will also be responsible for setting up and managing the connectivity of the
various physical & electronic channels and inducting technological innovations into the
channel. The networking department looks after the work related to connectivity, WAN,
LAN, ISA, Projects and network security.
RETAIL TECHNOLOGY GROUP (RTG)
The RTG will fill the need for a dedicated technology group. This group is the focal point
(on a bankwide basis) for the core banking technology platform (Finnacle), all other retail
applications and management of all the associated databases (including all modifications
thereto). RTG is responsible for all issues relating to these platforms to all the business
within REG as well as to COTG. All the businesses will also be required to consult with
RTG before effecting any modifications in any linked systems not already being directly
managed by RTG.

WHOLESALE BANKING GROUP (WBG)

WBG primarily represents a rapidly maturing part of the business of our bank and is
expected to perform the role of a "cash-cow" through an efficient management of its
capital resources and the provision of high and stable profit streams. This is expected to
provide high quality earnings to the balance sheet without necessarily contributing to a
growth in overall balance sheet size - in fact perhaps even a slow reduction in direct asset
exposures. It is also expected to provide "air-cover" during the early phases of several
new and high growth group-wide businesses.
Within WBG the only groups that are expected to see a rapid build up of asset base at a
similar pace are the SME and Agri-Business Groups for on-balance sheet assets and the
Global Markets Group for offbalance sheet assets. The other groups will focus on
building deep and enduring corporate relationships and the flawless delivery of worldclass banking solutions through the Product and Technology Group and the Treasury. The
Structured Product and Portfolio Management Group will manage the portfolio of assets
that are acquired, as a part of the relationship management process. In order to do this
effectively, it will seek to build world-class credit evaluation and portfolio management
and repackaging capabilities.
The WBG comprises the following specific groups:
(a) Corporate Solutions Group (CSG) and Government Solutions Group (GSG) (b)
Product

and Technology Group (COTG)

(c) Structured Products & Portfolio Management Group (SPPMG)

(d) Treasury
(e) Small and Medium Enterprises Group (SMEG) and Agri-Business Group (ABG) (f)
Special Purpose Groups.

CORPORATE SOLUTIONS GROUP (CSG) AND GOVERNMENT SOLUTIONS

GROUP (GSG)
In order to provide focus to customer segments and service them efficiently, two separate
Solutions Groups, viz.; CSG and GSG was created. These Groups were created through
the amalgamation of the present relationship and parts of the credit groups in ICICI and
ICICI Bank and have primary responsibility for pursuing all the business opportunities
that arise from large clients. In the case of CSG, the clientele is defined as those corporate
entities whose net worth in the most recently completed quarter ended March 31st equals
or exceeds RS.500 mn and for the GSG the clientele is Central/State Governments, PSUs
(both state and central), Government Bodies and Municipalities.
CSG's responsibilities include the provision of total solutions even to all the corporate
clients whose assets are being managed by PFG and the SAMG. However, while in the
case of all other clients the total Profit and Loss is the responsibility of the CSG, in the
case of PFG and SAMG clients, the Net Interest Income and all other credit related
incomes (specifically, Front-end income, Project Advisory Fees, Trade Finance Income
and Bank Guarantee. Income) and the capital consumed on account of these transactions
belong to PFG and SAMG. CSG is responsible for providing complete solutions
coverage and for all other fee incomes ITom these clients.
Similarly, while retail product delivery and servicing is the direct responsibility of RBG,
the corporate or the government relationship would continue to be managed primarily by
CSG and GSG. CSG and GSG would assume total volume targets on a group-wide basis
but would not receive any Profit and Loss credit to offset any RAROC (Risk Adjusted
Return on Capital) shortfalls for their portfolios.
The focus of the CSG and GSG Zones is to manage the risk capital assigned and deliver
maximum possible return on the capital. All profits and losses arising from all the

possible businesses from these corporate entities (assets, liabilities and services) is to
ascribed solely to the relevant CSG or GSG Zone.
PRODUCT & TECHNOLOGY GROUP (PTG)
One of the stated objectives of the bank is to provide flawless delivery of world-class
banking solutions. This is clearly possible only when all the activities from product
design to delivery mechanism are integrated on an end-to-end basis. Further, use of the
most suitable technology architecture becomes the core part of this activity. To ensure
effective implementation of the above capabilities, the Product and Technology Group
(PTG) has been formed.
This Group combines all the product design and delivery capability on an end-to-end
basis. It also directly manages the web-channels of product delivery including the website
'ICICI Bank e-business.'
PTG is also the sole interface for businesses in so far as any technology issues are
concerned. Within each product division ofPTG there is a Customer Service Officers
(CSOs) who interfaces not only with existing clients but the entire sales, marketing and
client handling process which is managed directly by the Solutions Groups. PTG is
responsible for delivering on cost and volume targets with the help of the various
Solutions Groups. While the branch managers would report to the relevant ZM, they is
directly responsible to the PTG on the following areas:
(a) All branch processes and strict adherence to them (b) All reporting and
compliance
(b) All reporting and compliance
(c) The complete branch infrastructure
(d) All customer service issues
All IT platforms (hardware as well as software) being used across WBG, PFG and

SAMG is managed by PTG (either by deploying its own staff members or with the help
of out-sourced partners). PFG and SAMG and to the extent that RBG customers use these
systems & functions in the capacity of users of these platforms.
PTG is organized into the following sub-groups:
(a) Cash Management Services Operations
(b) Trade Finance Operations headed
( c) General Banking Operations headed
(d) Web Channel Operations and CRM headed
(e) Product & Technology Group headed
(f) Operations and Systems Compliance and Control (OSCC) (head to be announced).
Head of this business will functionally report to Head of Mid Office Group in the
Corporate Centre.
STRUCTURED PRODUCTS & PORTFOLIO MANAGEMENT GROUP (SPPMG)
This Group focuses on all the dimensions of credit risk being assumed by the WBG. The
overall credit quality of the WBG portfolio as well as the RAROC on the capital
consumed by credit risk is the direct responsibility of SPPMG. While discharging this
overall responsibility, SPPMG will play the following key roles:
(a) Structured Products Advisory to the Solutions groups as well as advice in areas
such' as collateral structuring and loan covenants.
(b) Portfolio Management including sell-down and acquisition of selected assets from
the market to rebalance the portfolio through the various Groups focused on
financial institutions - Financial Institutions Group, GSG and SME.
(c) Drafting of all policies in relation to decision making within the WBG (including
organization of various decision-making committees, Investment Policy, Loan
Policy and Delegation of Financial Powers of the ED) in consultation with various
business groups inside and outside the WBG as well as the Chief Financial
Officer (CFO)
(d) Direct participation in transaction level decision making at the zonal level along

with the Solutions Groups at each stage starting from the preparation of credit
proposals, quality control of these proposals, presence at each of the credit
decision making committees and interfacing with the relevant MOGs to ensure
that appropriate process controls are in place.
(e) Product development work in the area of credit derivative~Qd securitisation and
development of markets for these products jointly with the Financial Institutions
Group and Global Markets Group of the Treasury.
(f) Work with Risk, Compliance and Audit Group to advance credit analysis quality
as
well as develop an independent point of view on issues relating to risk-return tradeoffs within the credit portfolio
In addition to assisting CSG and GSG in making more informed credit decisions, it
directly seeks to add value by improving the risk-adjusted return on the credit portfolio
itself through credit enhancement, sell-downs and portfolio rebalancing if necessary
through direct acquisition of client assets through the secondary markets and the use of
suitable hedging instruments.

TREASURY
The Treasury comprises of the following groups:
(a) Balance Sheet Management Group (BSMG)
(b) Global Markets Group (GMG)
(c) Corporate Markets Advisory Group (CMAG)
(d) Treasury Research Group (TRG)
(e) Capital Markets Services Group (CMSG) comprising the Capital Markets Division
(CMD) and the Securities Processing Division (SPD)
(f) Financial Institutions Group (FIG)
BSMG: primarily manages the liquidity and market risk on the balance sheet of ICICI

Bank - it is assigned risk capital and seeks to maximize the returns on that risk capital
while keeping within internal as well as regulatory limits. While the Performance
Management Unit of the Finance Group develops the transfer pricing policy of ICICI
Bank, the BSMG manages the inputs to the bank-wide calculators on a day-to-day basis.
GMG: minimizes the amount of capital at risk in the market but seek to deliver highly
stable quarterly returns by focussing on very broad based market making and arbitrage
strategies. As one of its primary responsibilities it assists SPPMG in its market-related
tasks. The GMG comprises three groups:

a) Cash, Derivatives and International Fixed income and Equity products and Forex
derivatives
b) Cash, Derivatives and International Commodities
c) Forex spot & forward
CMAG: will be the interface of the Solutions Groups to treasury products and will also
help in the delivery of treasury capabilities to clients directly. The CMAG will work only
with volume targets leaving P&L, pricing and marketing responsibilities to the Solutions
groups. The Corporate-FX group currently operating with the Bank's treasury will form a
part of the CMAG.
TRG: assigns trained researchers to each of the Treasury Groups with direct
accountability of the assignee only to the respective Treasury Group to which the
researcher has been assigned. The TRG coordinator plays an oversight role and ensures
that there is proper sharing of knowledge and ideas between researchers assigned to
various Treasury Groups.
CMSG: seeks to maximize returns from providing services to the capital markets
community comprising essentially brokers, foreign institutional investors and back office

services to mutual funds, corporates and financial institutions. The Capital Markets
Services Group (CMSG) comprises the Securities Processing Division (SPD) and the
Capital Markets Division (CMD).
SPD: The Custodial Services department functions as SPD in the treasury Group. The
range of services includes safe keeping, settlements and corporate action/event related
activities in respect of clients' holdings, fund/portfolio accounting including benefit
collection and proxy execution. Going forward, this division would target all fee-earning
opportunities in the securities processing business by capitalizing on its existing expertise
and expanding the range of services offered. This division would also catalyze current
account mobilization, float income and forex remittance businesses for the bank.
CMD: The Capital Markets Division is responsible for extracting value from our
relationships with the capital market players including issuers and stock exchange
members.
The thrust area is to exploit all fee income opportunities, while minimizing the risk
capital employed in the business. The services offered by the division includes clearing
accounts, settlement accounts, pool accounts and collecting banking operations. This
division is responsible for getting the valuable fee and float income ITom the capital
market participants.

FIG: is the Solutions group for large financial institutions (including all mutual funds)
and seeks to provide a complete range of solutions to them. It seeks to maximize returns
on risk capital assigned to them. It also undertakes syndication and debt capital market
activities and actively assists SPPMG in achieving its sell-down and portfolio rebalancing
targets.
SMALL AND MEDIUM ENTERPRISES GROUP (SMEG) AND AGRI-BUSINESS
GROUP (ABG)

These groups are expected to grow rapidly in terms of assets under. Given the unique
nature of these groups, the focus here is, on developing and implementing unique credit
risk management strategies and portfolio management strategies. SPPMG assists these
groups in the development process at the transaction level and will directly manage their
portfolio of assets as an integral part of its portfolio management responsibilities.
SMEG has the SME Account Managers placed within select retail branches and follows a
regional structure along the lines of CSG and GSG. SMEG operates from the Corporate
Banking Divisions but wherever necessary set up separate SME Divisions, which are
optimized to service large groups of its clients. The branch personnel dedicated for SME
operations does not have sales responsibilities. A separate sales team will handle sales.

Special Purpose Groups

In addition to these business groups there are the following special purpose groups:
a) Social Initiatives Group (SIG)
b) Knowledge Management Group (including Library); and
c) ICICI Research Centre (IRC)

PROJECT FINANCE GROUP (PFG)

Project finance has historically been the mainstay ofICICI's activities. Going forward
also, investments are envisaged both in infrastructure and the manufacturing sectors,
which are expected to translate into significant business opportunities for the ICICI
group. The existing focused group in the infrastructure area has developed expertise,
which can be leveraged for funding as well as government related policy advisory
assignments. The funding would be for new/expansion projects by private sector
participants as well as public sector units (PSUs) in the infrastructure sector.
In addition, this Group has the responsibility for funding Manufacturing Projects. Going

forward, the PFG will function as a credit-product group and will take limited exposures
in carefully select infrastructure and large manufacturing projects structured to ensure
easy syndication and sell-down ability. For all this work, it draws on its internal
capabilities as well as the expertise of the SPPMG and the Treasury wherever necessary.
PFG (and SAMG) has complete responsibility for Net Interest Income and the all other
credit related incomes (specifically, Front-end income, Project Advisory Fees, Trade
Finance Income and Bank Guarantee Income) and the capital consumed on account of
these exposures until they are transferred to WBG.
PFG is organized as follows:
(a) Infrastructure Projects Group (IPG)
(b) Manufacturing Projects Group including Oil & Gas (MPG) (c) Strategy and Analytics
Group (SAG)
(d) Technology Lines Group (TLG)
(e) Shipping Finance Group (SFG)
SAG supports the respective Project Finance Groups with strategy and appropriate
Economic, Industry and Sectoral analytics. This Group advises the ED on strategy. TLG
will implement various technology development and commercialization programmes on
behalf of international agencies viz. World Bank, USAID and ADB.
SPECIAL ASSET MANAGEMENT GROUP (SAMG)
Indian corporates in traditional manufacturing businesses are trying to come to terms with
the new competitive reality through a process of restructuring and repositioning. While
the group believe that this process enables the industry and economy to emerge stronger
and that the stress in certain industry segments is only temporary, it has nevertheless
resulted in deterioration in asset quality in the financial system.
In this context and in the run up to the transformation to a "Universal Bank", the Special

Asset Management Group (SAMG) was created to focus exclusively on stress cases, with
the objective of recovering and restoring value. This group has achieved remarkable
successes in severe stress cases by arresting the fall in values and ~reating a platform
where these values can be realized.
Taking this initiative forward, the group needs to evolve an organizational structure to
build more specialized skills in recovery, settlements, negotiating, proactive restructuring
in complex stress cases, handling multiple lenders across multiple jurisdictions and
continually looking at stress assets management from a macro perspective. Further, it is
imperative to find quick, localised solutions for small and medium cases, where the speed
on recovery would be of paramount importance and locational proximity to client may be
a key differentiating factor.
SAMG focuses on recovering value by hard negotiations, aggressive recovery actions,
innovative restructuring and through creative solutions to issues that have defied
conventional approaches. It is organised such that both the restructuring and the recovery
options are given the required focus. Apart from this the strategy is anchored on different
approaches for dealing with assets of large and small sizes and also on the different client
profiles. The SAMG organisation structure facilitates an entrepreneurial approach to
build delivery accountability.

CORPORATE CENTRE

Finance
The Finance function is organised as follows:
1. Accounting & Reporting Group
2. Secretarial & COG
3. Middle Office Group
4. Taxation Group

5. Performance, Information & Value Management Group (PIVG)

6. Taxation Group
7. Risk, Compliance and Audit Group (RCAG)
The RCAG Group is responsible for assessment, management and mitigation of risk for
ICICI Bank. This group is organised as follows:
(a) Credit Risk Rating & Industry Analysis
(b) Credit Policies, RBI Inspection and Credit Audit
(c) Risk Analytics
(d) Internal Audit for WBG, RBG, IBG & Corporate Centre and coordination with the
Audit Committee
(e) Subsidiaries Audit
(t) Retail Risk
HUMAN RESOURCES MANAGEMENT GROUP (HRMG)
The HRM Group is responsible for formulating and implementing appropriate policies
and processes that support the achievement of the business objectives. This group
organized as follows:
1. Business HR Groups
2. Functional Groups

CORPORATE BRAND & COMMUNICATIONS GROUPS

CBCG is organized as follows:
(a) Corporate Brand and IBG marketing
(b) WBG marketing headed
(c) Corporate Communication

This Group owns the Corporate Brand and is responsible for its salience including
appointing and managing agencies, creative and communication strategy, marketing and
media plan, and media buying. The respective business groups, draw upon the CBCG and
work in coordination with this Group for all branding actions, while independently
designing their product communication. CBCG is also responsible for standards and
norms with respect to the Brand presentation and usage. CBCG also performs the
marketing function for select businesses and the person allocated functionally reports to
the CBCG Head and for business interface with the Head of the respective businesses
(IBG & WBG). The Communications Group is responsible for managing all the media
interface and public relations.
LEGAL GROUP (LG)
This Group is responsible or all legal matters for the company. This group also consider
as the advisory group.
FACILITIES MANAGEMENT AND ADMINISTRATION GROUP: (FMG)
This Group is responsible for management of lCICI Bank's property, travel, management
of amenities, upkeep, maintenance and repair work of buildings and equipment,
telecommunication, security, dispatch, common filing, purchase of stationery and
managing the reception.

RETAIL CHANNELS AND LIABILITIES GROUP

REGIONAL HEAD

REGIONAL
SALES
MANAGER

REGIONAL
MANAGER
BRANCH-1

REGIONAL
MANAGER
BRANCH-2

REGIONAL
MANAGER
BRANCH-3

SAG SALARY ACCOUNT GROUP

PBG - PRIVATE BANKING GROUP
SAD SAVINGS AND DEPOSITS
TASC TRUST ASSOCIATION, SOCIETIES AND CLUBS
INS INVESTMENTS SERVICES

REGIONAL HEAD
SALES

REGIONAL
MANAGER
SAG

REGIONAL
MANAGER
PBG

REGIONAL
MANAGER
SAD

REGIONAL
MANAGER
INS

SALARY ACCOUNT GROUP

REGIONAL SALES
MANAGER

SALES
MANAGER

RELATION
-SHIP
MANAGER

RELATION
-SHIP
MANAGER

RELATION
-SHIP
MANAGER

BDE

BDE

BDE

BDE

PRIVATE BANKING:

REGIONAL SALES
MANAGER- PBG

FOUR
RELATION
SHIP
MANAGER
S IN
BLORE

FOUR
RELATION
SHIP
MANAGER
S
OUTSIDE
BLORE

SALES
MANAGER

SIX
BUSINESS
DEVELOPMENT
EXECUTIVES

SAVINGS AND DEPOSIT ACCOUNTS

REGIONAL SALES
MANAGER SDA

16 SALES MGRS
IN KARNATAKA

SALES
EXECUTIVES

FEED ON STREET

CALL CENTER

TRUST ASSOCIATION, SOCIETY AND CLUB

REGIONAL SALES
MANAGER TASC

RELATIONSHIP
MANAGER

9 SALES MGRS IN
KARNATAKA

BUSSINESS
DEVELOPMENT
EXECUTIVES

INVESTMENTS AND SERVICES

REGIONAL SALES
MANAGER INS

RELATIONSHIP
MANAGER

RELATIONSHIP
MANAGER

RELATIONSHIP
MANAGER

SALES
EXECUTIVESS

SALES
EXECUTIVESS

SALES
EXECUTIVESS

FUNCTIONS OF SALES MANAGER AND RELATIONSHIP MANAGER

1. Execution of sales plan corporate zone map, corporate combing through BDE
and student trainees
2. RM to meet at least 12 corporate per day
3.

Generate adequate leads through corporate residential area combing GTMY &
tele-calling

4. Coach account opening team- minimum of 20k for account opening cheque.
5. Generate reference and EFD through student trainee channel- ATMs Walk ins
6. Gather data Base- Outbound team will follow-up for lead generation
7. Ensuring more sales per call training BDE and Student Trainees
8. Have a balance team of Student Trainees Make up for shortfall of FOS

9. Coordination with branch staff for EFD & RD

10. Update of BDE in web page
11. Ensuring timely reporting of DSR, Weekly report
12. Maintain an account of Welcome Kits
13. Maintain Daily Run Rate

FUNCTIONS OF BUSINESS DEVELOPMENT EXECUTIVE

1. Ensuring proper documentation of customer and genuineness of the customers.

2. Responsible for branch target
3. Implementation of GTMY, corporate residential area combing & coordination
with the call centre
4. Passing of correct information to the customer at the time of picking up
application
5. Coach student trainees on product and process
6. Follow thumb rule 10 corporate call of BDE - at least 3 Productive
7. LOF 100% achievement before 20th November
8. Timely submission of reports and feed back
9. Make more sales per call cover the immediate catchments
10. Maintain DSR
11. Collect reference in each and every sales calls

STRATEGY OF ICICI

The liberalization and growth of Indian economy provides ICICI Bank with significant
opportunities to provide superior financial products and services to the corporate and the
retail sector. ICICI Banks objective is to enhance its position as Indias premier financial
service provider. The key elements of ICICI Banks business strategy are:
1. Focus on quality growth opportunities by:

Building a strong retail franchise;

Maintaining and enhancing strength in corporate banking;

Building international presence.

2. Emphasize conservative risk management practices and enhanced asset

quality.
3. Use technology for competitive advantage;
4. Attract and retain talented professionals; and
5. Leverage on synergies from merger of ICICI and two of its subsidiaries.

DESIGN OF THE STUDY

PROJECT TITLE: A STUDY ON MARKET POTENTIAL OF ICICIS SALARY

ACCOUNT IN BANGALORE CITY

OBJECTIVE OF STUDY

Scope of the study:

This study is aimed towards the market potential of corporate salary account provided by
the ICICI Bank ltd. The study is contender towards the value-added feature of salary
account product of ICICI Bank. The study doesnt deal with the other financial product
offered by bank only products offer by retail channel group. Hence the study is limited to
the above

Place of research
-

Bangalore city.

Research Methodology
Since the research was on the salary account product, for that the sample has been taken
out from the different industrial area in Bangalore city. The sample has been categorized
based on the geographical and demographical characters. As we know salary account
product is meant for working class people, so sample has been taken from working class
people only.

Before starting the research work, information from all the banks with regard to salary
account product has been collected. After getting this secondary information
questionnaire has been prepared for approaching the working class people. At the same
time some of the web sites have been used to get the additional information regarding
salary account product.

RESEARCH ANALYSIS AND FINDIING

1. TOTAL SALARY UPLOAD ACCORDING TO AREA WISE

Total Salary Upload

M.G.Road
Bhomsandra

60000000
50000000
40000000
30000000
20000000
10000000
0

Hoskote
Jigani
Richmond
Yelhankha
Infantry road
1

Electronic City
Whitefield

INFERENCE: The Electronic City and White Field contributes 40% of the total salary
up-load in the Bangalore City, so they become the crucial places to be concentrated.

2.

BREAK UP OF BANKS PROVIDING CORPORATE SALARY ACCOUNT

IN DIFFERENT INDUSTRIAL AREAS

Yelhankha
20%
Canara Bank

40%

Citibank
SBI
40%

3. SATISFACTION LEVEL WITH EXISTING BANK

INFERENCE: 79% of the companies are satisfied with the services provided by their
existing banker where as the 21% of the companies are not satisfied, which will be the
most crucial customers which can be materialized.

4. CAUSES FOR DISSATISFACTION

INFERENCE: The major cause of dissatisfaction is the after sale service. Therefore
feedback from the corporates regarding the service provided to them on the periodic basis
necessary.

5. AWARENESS OF ICICIS CORPORATE SALARY ACCOUNT

INFERENCES: Awareness is very low in Jigani and Bhomsandra industrial area. These
areas have got some good companies like TATA ADVANCED MATERLIALS, OTIS, and
CROMPTON GREAVES which has to be tapped.

6.

POTENTIALITY OF ROUTING EMPLOYEE SALARY THROUGH

ICICIS CORPORATE SALARY ACCOUNT

INFERENCES: The companies which want to definitely route their salary through
ICICIS corporate salary account contribute 5% and companies which probably want to
route to rote their salary through ICICIS salary account contribute 17% , these
companies will be the potential market for ICICI.

CONCLUSION AND SUGESTIONS:

1. Since Whitefield and Electronic city are identified as crucial areas in terms of
total salary upload; ICICI bank has to concentrate maximum on new acquisitions
to compete with the existing ABN AMRO and SBI banks in order to penetrate the
market.
2. Out of 10 industrial areas Citibank leads other banks in 4 industrial areas in terms
of acquiring large customer base. Hence ICICI bank should keep continuous
track of fresh recruitments and come up with competitive offerings and features
to attract these fresh employees to the companies in these areas.
3. Since 21% of the companies are not satisfied with other banks, these will be the
most crucial customers for ICICI. Hence ICICI has to clearly understand and
address the needs of these corporate to enhance its market share.
4.

It would be feasible to set up an ATM counter in Jigani Industrial area due to the
following reasons:
a.

It has a considerable total salary upload of 1.5 crores per month.

b.

Only Corp bank has setup an ATM over there, and most of the corporate are
not satisfied with its services.

c.
d.

There is no branch of any bank nearby Jigani and surrounding 10Kms.

There are some good companies like Tata Advanced materials, OTIS,
Crompton Greaves, which contribute more than 80% of salary upload.

5. The major cause of dissatisfaction is poor after sale service. Therefore ICICI
bank has to get periodic feedback from the corporate and provide quality service.
6. Awareness is very low in Jigani and Bommasandra industrial area.
Therefore:

Promotional activities like presentations for employers and employees should be

conducted in the potential organizations.

Seminars should be organized where in all HR and Finance Managers of potential

corporate should be invited and awareness on e-age banking should be done.

7. Since 57% of the corporate are unsure to route their salary accounts through
ICICI bank, ICICI has to keep a continuous track to convince and convert them
to potential customers.

BIBLIOGRAPHY

Marketing research: By, Hawkins & Tull

Marketing Management: By, Philip Kotler

www.icicibank.com

www.ibank.com

www.google.com

Magazines

Product Literature Brochures

Pamphlets

Presentations Material

Questionnaire
Dear Sir/Madam
The objective of this research is to know the market potential for corporate salary A/c
in Bangalore. The information provided by you will be kept strictly confidential and
used for the purpose of project only. I will be grateful if you oblige for the same.
1. a) Name: _________________________________________
b) Name of the Company: ___________________________
c) Designation: ____________________________________
d) Department: ____________________________________
e) Contact No: ____________________________________
2. No of employees working in your company ______________
3.

Average salary paid for a month

a) >5000
b) 10000 to 15000
d) 20000 to 25000

c) >25000

15000 to 20000

4.

Procedure of payoff in your company is through

a) Single cheque
b) Multi cheque
d) Debit advice to bank

c) Cash

e) Corporate salary A/c

5. If your payoff is through salary A/c please specify the bank

a) ICICI
b) Citi Bank
c) HDFC
d) ING Vysya

e) HSBC

g) Canara

h) Corp Bank

f) SBI
g) Stan chat

6. Are your employees satisfied with the services provided by your current banker
a) Yes
b) No
* If Not Please tick the following:
a. High min balance to be maintained
b. Restriction on withdrawals
c. Poor service
d. Hidden charges
e. Others specify____________________
7. Rate the facilities/services of your current banker
a) Excellent
b) Very Good
c) Neither good nor bad
d) Not satisfactory
8. Are you aware of ICICIs salary A/c features
a) Yes
b) No
*If yes, how did you come to know?
a) Through Sales Manager/ Relationship Manager
b) Through Business Development Executive
c) Through Internet
d) Others Please specify: __________________________
9. Are you interested in routing your employees salary through ICICI salary A/c
a) Definitely
b) Probably
c) Cant say
d) Probably Not

e) Definitely not

THANK YOU FOR YOUR KIND CO-OPERATION