Profitability of Private Sector Bank

PROFITABILITY OF PRIVATE SECTOR BANK 2017
EXECUTIVE SUMMARY
This paper is aimed at examining the profitability and productivity of Indian banks in relation
to each other. The objective is to study the profitability and to evaluate the productivity of
commercial banks with special reference to selected five banks in India during the period
2010-2011 to 2014-2015. The samples are selected through random sampling technique and
data collected from secondary sources. The tools are Correlation and test. This study
examines the relationship among the profitability and productivity of Indian commercial
banks both public and private sector banks. Analysing the banks overall profitability and
productivity indices reveal that both public and private sector banks are profitable. With the
increasing competition in the banking sector, profitability and productivity has become a
greatest challenge to Indian commercial banks. Banks should explore every possibility for
improvement and increase the profitability.
Profit is a measure of success of business and the means of its survival and growth.
Profitability is the ability of a business to earn profit for its owners. The objective of this
study was profitability ratios show a company's overall efficiency and performance of
different private sectors banks in India .The various profitability ratios like interest spread,
net profit margin, return on long term loan, return on net worth , return on asset & adjusted
cash margin. Profitability ratios provide different useful insights into the financial health and
performance of a company.
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INTRODUCTION OF PRIVATE SECTOR BANK
This section is devoted to evaluate the performance of domestic private sector banks during
the period 1992-93 to 2002-03 in which reform measures are under implementation. The same
parameters are used to measure the efficiency and profitability of private sector banks, which
are used for Public Sector Banks.
This section is also divided in to Three Parts, as was done in the previous Section. Part -I
deals with the evolution of domestic private sector banks in India. Part-II analyses the
performance of private sector banks-old and new-during the study period 1992-93 to 2002-
03.and Part-III is devoted to period-wise analysis of performance of Private Sector Banks in
terms of efficiency and profitability. Grouping of banks is done on the basis of composite
score arrived at through principle component analysis.
The development of 'Banking' is evolutionary in nature. There is no single answer to the

question of what is banking, because a bank performs a multitude of functions and services
which cannot be comprehended into a single definition. For a common man, a bank means a
storehouse of money, for a businessman it is an institution of finance and for a worker it may
be a depository for his savings.
It may be explained in brief as "Banking is what a bank does." But it is not clear enough to
understand the subject in full. The Oxford Dictionary defines a bank as "an establishment for
the custody of money which it pays out on a customer's order ". But this definition is also not
enough, because it considers the deposit accepting and repayment functions only. The
meaning of the bank can be understood only by its functions just as a tree-is, known by its
fruits. As any other subjects, it has its own origin, growth and development. Let us briefly
trace the evolution of Banking.
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EVOLUTION OF PRIVATE SECTOR BANK

Historically, the private sector banks played a crucial role in the growth of joint stock banking
in India. The first half of the 20th century witnessed phenomenal growth of private sector
banks. As a result in 1951, there were 566 private banks of which 474 were non-scheduled
and 92 scheduled classified on the basis of their capital size. The role of private sector
banking started declining when the Government of India entered banking business with the
establishment of State Bank of India in 1955 and subsequently two rounds of bank
nationalization one in July 1969 (14 major banks), another in April 1980 (take-over of 6
banks). Consequently, the presence of public sector banks has increased.
At present, there are 32 private banks comprising of 24 old banks, which existed prior to
1993-94 and eight new private banks, which were established during 1993-94 and onwards
after the RBI announced guidelines in January 1993 for establishment of new banks in private
sector following the recommendations of Narasimham Committee-I (1991). Compared to
New private sector banks, the old banks are smaller in size. For example, at end March 2000,
the average net worth of the 24 Old Private Banks (OPBs) was Rs.179.67 Crore per OPB
compared to that of the New Private Bank (NPB) at Rs. 479.88 Crore per NPB. The OPBs are
essentially regional in character although some of them have scattered presence in areas other
than in and around the areas of their origin. The number of branches of the NPBs was 999 at
end March 2003, while those of OPBs 3491. The NPBs are extremely cautious in expanding
their branch network and business because their managers, mostly drawn from the public
sector banks, know very well the ills of unbridled expansion of branches by public sector
banks in the post-nationalization era.
Accordingly, nine banks were set-up in private sector bankincluding some by development
financial institutions. Prominent among them are ICICI Bank, GTB, HDFC and IDBI bank.
Another interesting development was merger of some banks. Bareily Corporation Ltd merged
with Bank of Baroda in 1999, Times Bank merged with HDFC Bank in 1996, Bank of
Madura Ltd merged with ICICI bank in 2001 and Nedungadi Bank Ltd merged with Punjab
National Bank in 2003. With regard to branch expansion, banks attaining capital adequacy
norms and prudential accounting standards can set up new branches without the prior
approval of RBI. Banks have the freedom to rationalize their existing branch network by
relocating branches, opening of specialized branches, spinning off business, setting up of
controlling offices, etc.
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CONCEPT OF PRIVATE SECTOR BANK
The private-sector banks in India represent part of the Indian banking sector that is made up
of both private and public sector banks. The "private-sector banks" are banks where greater
parts of stake or equity are held by the private shareholders and not by government. Banking
in India has been dominated by public sector banks since the 1969 when all major banks were
nationalised by the Indian government. However since liberalisation in government banking
policy in 1990s, old and new private sector banks have re-emerged. They have grown faster
and bigger over the two decades since liberalisation using the latest technology, providing
contemporary innovations and monetary tools and techniques. The private sector banks are
split into two groups by financial regulators in India, old and new. The old private sector
banks existed prior to the nationalisation in 1969 and kept their independence because they
were either too small or specialist to be included in nationalisation. The new private sector
banks are those that have gained their banking license since the liberalisation in the 1990s.
FUNCTION OF PRIVATE SECTOR BANK

The private sector banks play a vital role in the Indian economy. They indirectly motivate the
public sector banks by offering a healthy competition to them. The following are their
functions:
(1) Offering high degree of Professional Management:
The private sector banks help in introducing a high degree of professional management and
marketing concept into banking. It helps the public sector banks as well to develop similar
skill and technology.
(ii) Creates healthy competition:
The private sector banks provide a healthy competition on general efficiency levels in the
banking system.
(iii) Encourages Foreign Investment:
The private sector banks especially the foreign banks have much influence on the foreign
investment in the country.
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(iv) Helps to access foreign capital markets:

The foreign banks in the private sector help the Indian companies and the government
agencies to meet out their financial requirements from international capital markets. This
service becomes easier for them because of the presence of their head offices/other branches
in important foreign centres. In this way they help a large extent in the promotion of trade and
industry in the country.
(v) Helps to develop innovation and achieve expertise:
The private sector banks are always trying to innovate new products avenues (new schemes,
services, etc.) and make the industries to achieve expertise in their respective fields by
offering quality service and guidance. They introduce new technology in the banking service.
Thus, they lead the other banks in various new fields. For example, introduction of
computerised operations, credit card business, ATM service, etc. The commercial banks serve
as the king pin of the financial system of the country. They render many valuable services.
The important functions of the Commercial banks can be explained with the help of the
following chart.
Primary Functions:-
The primary functions of the commercial banks include the following:
A. Acceptance of Deposits
1. Time Deposits:
These are deposits repayable after a certain fixed period. These deposits are not withdrawn
able by cheque, draft or by other means. It includes the following.
(a) Fixed Deposits:
The deposits can be withdrawn only after expiry of certain period say 3 years, 5 years or 10
years. The banker allows a higher rate of interest depending upon the amount and period of
time. Previously the rates of interest payable on fixed deposits were determined by Reserve
Bank. Presently banks are permitted to offer interest as determined by each bank. However,
banks are not permitted to offer different interest rates to different customers for deposits of
same maturity period, except in the case of deposits of Rs. 15 lakhs and above.
These days the banks accept deposits even for 15 days or one month etc. In times of urgent
need for money, the bank allows premature closure of fixed deposits by paying interest at
reduced rate. Depositors can also avail of loans against Fixed Deposits. The Fixed Deposit
Receipt cannot be transferred to other persons.
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(b) Recurring Deposits:

In recurring deposit, the customer opens an account and deposit a certain sum of money
every month. After a certain period, say 1 year or 3 years or 5 years, the accumulated amount
along with interest is paid to the customer. It is very helpful to the middle and poor sections of
the people. The interest paid on such deposits is generally on cumulative basis. This deposit
system is a useful mechanism for regular savers of money.
(c) Cash Certificates:

Cash certificates are issued to the public for a longer period of time. It attracts the people
because its maturity value is in multiples of the sum invested. It is an attractive and high
yielding investment for those who can keep the funds for a long time. It is a very useful
account for meeting future financialrequirements at the occasion of marriage, education of
children etc. Cash certificates are generally issued at discount to face value. It means a cash
certificate of Rs. 1, 00,000 payable after 10 years can be purchased now, say for Rs. 20,000.
2. Demand Deposits:
These are the deposits which may be withdrawn by the depositor at any time without previous
notice. It is withdraw able by cheque/draft. It includes the following:
(a) Savings Deposits:

The savings deposit promotes thrift among people. The savings deposits can only be held by
individuals and non-profit institutions. The rate of interest paid on savings deposits is lower
than that of time deposits. The savings account holder gets the advantage of liquidity (as in
current a/c) and small income in the form of interests. But there are some restrictions on
withdrawals. Corporate bodies and business firms are not allowed to open SB Accounts.
Presently interest on SB Accounts is determined by RBI. It is 4.5 per cent per annum. Co-
operative banks are allowed to pay an extra 0.5 per cent on its savings bank deposits.
(b) Current Account Deposits:
These accounts are maintained by the people who need to have a liquid balance. Current
account offers high liquidity. No interest is paid on current deposits and there are no
restrictions on withdrawals from the current account.
These accounts are generally in the case of business firms, institutions and cooperative bodies.
Nowadays, banks are designing and offering various investment schemes for deposit of
money. These schemes vary from bank to bank.
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It may be stated that the banks are currently working out with different innovative schemes
for deposits. Such deposit accounts offer better interest rate and at the same time withdraw
able facility also. These schemes are mostly offered by foreign banks. In USA, Current
Accounts are known as 'Checking Accounts' as a cheque is equivalent to check in America.
B. Advancing of Loans:-
The commercial banks provide loans and advances in various forms. They are given below:
1. Overdraft:
This facility is given to holders of current accounts only. This is an arrangement with the
bankers thereby the customer is allowed to draw money over and above the balance in his/her
account. This facility of overdrawing his account is generally pre-arranged with the bank up
to a certain limit. It is a short-term temporary fund facility from bank and the bank will charge
interest over the amount overdrawn. This facility is generally available to business firms and
companies.
2. Cash Credit:
Cash credit is a form of working capital credit given to the business firms. Under this
arrangement, the customer opens an account and the sanctioned amount is credited with that
account. The customer can operate that account within the sanctioned limit as and when
required. It is made against security of goods, personal security etc. On the basis of operation,
the period of credit facility may be extended further. One advantage under this method is that
bank charges interest only on the amount utilized and not on total amount sanctioned or
credited to the account.
Reserve Bank discourages this type of facility to business firms as it imposes an uncertainty
on money supply. Hence this method of lending is slowly phased out from banks and replaced
by loan accounts. Cash credit system is not in use in developed countries.
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3. Discounting of Bills:
Discounting of Bills may be another form of bank credit. The bank may purchase inland and
foreign bills before these are due for payment by the drawer debtors, at discounted values, i.e.,
values a little lower than the face values. The Banker's discount is generally the interest on the
full amount for the unexpired period of the bill. The banks reserve the right of debiting the
accounts of the customers in case the bills are ultimately not paid, i.e., dishonoured. The bill
passes to the Banker after endorsement. Discounting of bills by banks provide immediate
finance to sellers of goods. This helps them to carry on their business. Banks can discount
only genuine commercial bills i.e., those drawn against sale of goods on Credit. Banks will
not discount Accommodation Bills.
4. Loans and Advances:
It includes both demand and term loans, direct loans and advances given to all type of
customers mainly to businessmen and investors against personal security or goods of movable
or immovable in nature. The loan amount is paid in cash or by credit to customer account
which the customer can draw at any time. The interest is charged for the full amount whether
he withdraws the money from his account or not. Short-term loans are granted to meet the
working capital requirements where as long-term loans are granted to meet capital
expenditure. Previously interest on loan was also regulated by RBI. Currently, banks can
determine the rate themselves. Each bank is, however required to fix a minimum rate known
as Prime Lending Rate (PLR).
TYPES OF PRIVATE SECTOR BANKS

Private sector banking is a type of banking process that involves financial institutions which
are primarily owned and operated by private individuals and business organizations rather
than by a government entity. This is in contrast with public sector banking, in which the
banking enterprise is owned and operated by the state in some manner. In many nations that
are supportive of free enterprise, private sector banking is the most common form of banking
available. While a government may not actually control banks and other financial institutions
that engage in this form of banking, private sector institutions do typically have to comply
with governmental regulations that apply to banking in general. It is not unusual for private
sector banking to play a major role in the economy of a given nation. Since this form of
banking along with other private sector business enterprises tends to account for a large
portion of the money that moves through an economy, financial analysts will pay close
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attention to what is happening in the private sector. In some nations, a government bank may
sometimes set the standard for issues such as interest rates, with banks in the private sector
following the example. Since so much of the economy depends on the activities occurring
within the private sector, the current policies and procedures that govern private sector
banking within a given nation can often help to slow and eventually reverse an unfavourable
economic trend, such as a recession.
Another benefit of private sector banking is the support that the mechanism provides to the
free enterprise system within a number of economies. Assuming that the banks associated
with the private sector are working in harmony with other private sector businesses and
concerns, the potential for growing the economy at a consistent and prudent pace is possible.
Banking of this tends to make it easier for companies to obtain funds for expansion projects,
the launching of stock offerings, and other vital activities that ultimately benefit both the
banks and the companies, as well as consumers in general.
While private sector banking does provide a wide range of benefits, this form of banking has
to comply with governmental regulations that are in effect in the nation where the banks are
located. This helps to provide a basis or foundation for the operation, allowing all banking
concerns to have the opportunity to compete for customers. Typically, the regulations also
help to establish guidelines for the creation of financial products that are offered to individual
and commercial customers, while still allowing each bank to offer value-added benefits that
help them to stand out among the different choices open to those potential customers. There
are types of Private banks in India;
a. Old generation private banks.
b. New generation private banks
c. Foreign banks operate in India d.
d. Co-operative banks
(a)Old Generation Private Banks:
The banks, which were not nationalized at the time of bank nationalization that took place
during 1969 and 1980‘s are known to be the old private-sector banks. These were not
nationalized, because of their small size and regional focus. Most of the old private-sector
banks are closely held by certain communities their operations are mostly restricted to the
areas in and around their place of origin. Their Board of directors mainly consist of locally
prominent personalities from trade and business circles. One of the positive points of these
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banks is that, they lean heavily on service and technology and as such, they are likely to
attract more business in days to come with the restructuring of the industry round the corner.
List of the old private-sector banks in India:
1. Bank of Rajasthan Ltd.
2. Catholic Syrian Bank Ltd.
3. City Union Bank Ltd.
4. Dhanalakshmi Bank Ltd.
5 Federal Bank Ltd.
6. ING Vysya Bank Ltd.
7. Jammu and Kashmir Bank Ltd.
8. Karnataka Bank Ltd.
9. KarurVysya Bank Ltd.
10. Lakshmi Vilas Bank Ltd.
(b)New Generation Private-Sector Banks:-
The banks, which came in operation after 1991, with the introduction of economic reforms
and financial sector reforms are called "new private-sector banks". Banking regulation act was
then amended in 1993, which permitted the entry of new private-sector banks in the Indian
banking s sector. However, there were certain criteria set for the establishment of the new
private-sector banks, some of those criteria being: The bank should have a minimum net
worth of Rs. 200 Crores.
1. The promoters holding should be a minimum of 25% of the paid-up capital.
2. Within 3 years of the starting of the operations, the bank should offer shares to public and
their net worth must increased to 300 crores.
List of the new private-sector banks in India
1. Bank of Punjab Ltd. (since merged with Centurian Bank)
2. Centurian Bank of Punjab (since merged with HDFC Bank)
3. Development Credit Bank Ltd.
4. HDFC Bank Ltd.
5. ICICI Bank Ltd.
6. IndusInd Bank Ltd.
7. Kotak Mahindra Bank Ltd.
8. Axis Bank (earlier UTI Bank)
9. Yes Bank Ltd.
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Advantages of Private sector banks:-
The importance of private sector in Indian economy over the last 15 years has been
tremendous. The opening up of Indian economy has led to free inflow of foreign direct
investment (FDI) along with modern cutting edge technology, which increased the importance
of private sector in Indian economy considerably. Previously, the Indian markets were ruled
by the government enterprises but the scene in Indian market changed as soon as the markets
were opened for investments. This saw the rise of the Indian private sector companies, which
prioritized customer's need and speedy service. This further fueled competition amongst same
industry players and even in government organizations.
The post 1990 era witnessed total investment in favour of Indian private sector. The
investment quantum grew from 56% in the first half of 1990 to 71 % in the second half of
1990. This trend of investment continued for over a considerable period of time. These
investments were especially made in sector like financial services, transport and social
services.
The late 1990s and the period thereafter witnessed investments in sector like manufacturing,
infrastructure, agriculture products and most importantly in Information technology and
telecommunication. The present trend shows a marked increase in investment in areas
covering pharmaceutical, biotechnology, semiconductor, contract research and product
research and development.
The importance of private sector in Indian economy has been very commendable in
generating employment and thus eliminating poverty. Further, it also affected the following –
1) Increased quality of life

2) Increased access to essential items
3) Increased production opportunities
4) Lowered prices of essential items
5) Increased value of human capital
6) Improved social life of the middle class Indian
7) Decreased the percentage of people living below the poverty line in India
8) Changed the age old perception of poor agriculture based country to a rising
manufacturing based country
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9) Effected increased research and development activity and spending

10) Effected better higher education facilities especially in technical fields
11) Ensured fair competition amongst market players
12) Dissolved the concept of monopoly and thus neutralized market manipulation practices.
The importance of private sector in Indian economy can be witnessed from the tremendous
growth of Indian BPOs, Indian software companies, Indian private banks and financial service
companies. The manufacturing industry of India is flooded with private Indian companies and
in fact they dominate the said industry. Manufacturing companies covering sectors like
automobile, chemicals, textiles, agri-foods, computer hardware, telecommunication
equipment, and petrochemical products were the main driver of growth.
The Indian BPO sector is more concentrated with rendering services to overseas clients. The
KPO sector is engaged in delivering knowledge based high-end services to clients. It is
estimated, that out of the total US $ 15 billion KPO service business around US $ 12 billion
of business would be outsourced to India by the end of 2010.
Banks and financial institutions are not just users of technology. They have driven (and
continue to drive) innovations in technology. ATMs were widespread before the PC
revolution, the SWIFT network allowed global electronic money transfer before there was any
Internet. Stock and commodity exchanges trade trillions electronically every day.
We tend to take this technology for granted, and are only reminded about it when the ATM
machine is down, or the POS machine refuses to recognize our credit card. But in reality, no
banking or financial transaction today can be completed without technology.
Keeping up with all of this can be a challenge for the IT departments of banks and financial
institutions. In a recent study conducted by Value Notes for Anunta, we found that the biggest
challenge faced by CTOs was in integration. The other big challenge is around retaining and
attracting IT talent.
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80%
70%
60%
50%
40%
30%
20%
10%
0%
Lack of Security concerns Infrastructure Time to market Scarcity of skilled
Integration and regulatory issues and scalability resources and
norms attrition
This pains of integration were felt by all financial institutions, in different degrees. The head
of IT at an insurance company told us, ―Integration with banks is a great challenge. We get
business due to Bancassurance, but some of the PSU banks did not let us look at their
systems.‖ The CIO of a pre-liberalization private bank felt that data portability from old
applications to new applications was a major challenge.
Private banking is personalised financial and banking services offered to a bank's high net
worth individuals (HNIs). In India, it is offered by foreign banks and a few private sector
banks. Banks like Citibank, Standard Chartered, HSBC, HDFC, ICICI and the likes offer such
services. The main advantage of private banking is that a dedicated relationship manager is
assigned to the customer who takes care of all his/her banking and financial needs. Be it a
simple thing like wanting cash delivered at your doorstep, or complex financial planning for
your kids, or your retirement, drafting a will, investing shortterm surplus money, or buying a
complex structured product - all of it is taken care of by the private banker.
Private banking is offered to high net worth customers. Depending on the perception of your
financial wealth, the bank would offer you these services.
Different banks have different norms for customers eligible for such services. Some banks
offer private banking to clients with 30 lakh investible surplus, while some others give them
to those with 1crore and above.
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Your wealth would include things like fixed deposits, your investments in mutual funds the
balance in your savings account and so on.
The private banker helps you in all your banking and wealth management needs. To start
with, the banker has to understanding the customer. So a private banker has initial meetings
with the client to understand his/her risk profile, cash flows, needs and wants.
Based on the details obtained from such meetings, he develops an asset-allocation ratio for the
client.
Using this model, he allocates the client's wealth into various assets that he feels opportune,
such as equities, debt or real estate.
Within each category, he offers various products. Once a portfolio is restructured and built, it
is monitored on a monthly or quarterly basis. The private banker comes up with appropriate
strategies to enhance returns from the portfolio.
A private banker's role is to anticipate and understand client needs and to help achieve his
immediate and long-term wealth goals. So whether you run a business, or are employed or a
professional, a private banker should be able to help you.
An Analysis of Profitability Position of Private Sector Banks in

India
A BRIEF ACCOUNT OF PROFITABILITY:-
Every firm is most concerned with its profitability. One of the most frequently used tools of
financial ratio analysis is profitability ratios which are used to determine the company's
bottom line and its return to its investors .Profitability ratios are typically based on net
earnings, but variations will occasionally use cash flow or operating earnings . Profitability is
a measure of efficiency and control. Profitability ratios are employed by management in order
to assess how efficiently they carry on business operation. Profitability is the main base for
liquidity as well as solvency. Creditors, banks and financial institutions are interested in
profitability ratiossince they indicate liquidity or capacity of the business to meet interest
obligations, and regular and improved profit to enhance the long term solvency position of the
business. The following profitability ratios are.
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Interest Spread:-
Interest spread is the difference between the average lending rate and the average borrowing
rate for a bank or other financial institution. This is the excess of total interest earned over
total interest expended. The ratio of interest spread to AWF shows the efficiency of bank in
managing and matching interest expenditure and interest income effectively. Interest spread is
critical to a bank’s success as it exerts a strong influence on its bottom line.
Interest Spread % = Total interest income minus total interest expenses / Average working
fund.
STANDARD DEVIATION & COEFFICIENT OF VARIATION
YEAR AXIS ICICI KVB SBI

2002-2003 6.28 2.7 4.88 5.33
2003-2004 5.66 3.76 4.16 4.32
2004-2005 4.09 3.56 4.28 4.02
2005-2006 3.14 2.67 4.13 5.18
2006-2007 3.27 3.43 4.24 5.37
2007-2008 3.77 3.51 4.05 4.91
2008-2009 4.24 3.66 5.34 6.73
2009-2010 3.95 5.66 4.81 6.35
2010-2011 3.73 4.01 4.30 6.01
2011-2012 3.91 4.44 4.37 5.32
MEAN 4.20 3.7 4.46556 5.354
SD 0.949339 0639 0.41452 0.799615
CV 22.518 21.529 9.28255 14.93491
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Exhibits that bank wise mean standard deviation & coefficient of variation of interest spread
of selected banks. SIB has highest mean value & ICICI has lowest value when compare to
other banks. Standard deviation of total interest incomes & expenses to average working fund
of AXIS has 0.949 with highest coefficient of variation of 22.581 % and KVB has 0.4145 low
standard deviation with low coefficient of variation is 9.28255%.
Projects the result of Chi-Square Test
Profitability Degree Calculated Table value Ho:-Null

of value (x2) (at5% level hypothesis
freedom of Accepted/Rej
significanc ected
e)
Interest 27 5.24440785 40.113 ACCEPTED
spread
Since the calculated value of Chi-square (5.2440) is less than the table value (40.113) as
shown in table of project the result of chi-square test, null hypothesis is accepted. It is
therefore, concluded that there is no significant relationship between the interest spread of
(AXIS, ICICI, KVB, SIB) private sectors banks in India.
Net Profit Margin:-Net profit margin is the percentage of revenue remaining after all
operating expenses, interest, taxes and preferred stock dividends (but not common stock
dividends) have been deducted from a company's total revenue. The net profit margin is a
number which indicates the efficiency of a company at its cost control. A higher net profit
margin shows more efficiency of the company at converting its revenue into actual profit.
Net profit margin % = Net Profit / Revenue
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STANDARD DEVIATION & COEFFICIENT OF VARIATION
YEAR AXIS ICICI KVB SBI
2002-2003 10.27 9.86 19.23 8.64

2003-2004 13.14 13.67 22.12 9.21
2004-2005 14.33 16.32 1.28 125
2005-2006 13.47 14.12 17.67 6.15
2006-2007 12.01 10.81 16.47 9.71
2007-2008 12.22 10.51 16.12 10.66
2008-2009 13.31 9.74 14.35 10.66
2009-2010 16.10 12.17 16.82 10.69
2010-2011 1.20 1.91 1.87 1.10
2011-2012 15.51 16.14 14.01 10.52
MEAN 13.756 12.925 16.994 8.89
SD 1.974377 2.513353 2.218591 2.893988
CV 14.35284 19.44567 13.05514 32.66721
As per tablestandard deviation & coefficient of variation it has been found that bank wise
mean standard deviation & coefficient of variation of net profit margin of selected banks.
KVB & AXIS has highest mean value & SIB has lowest value when compare to other banks.
Standard deviation of net profit to revenue of SIB has 2.893 with highest coefficient of
variation of 32.657 % and AXIS has 1.9743 low standard deviation & high coefficient of
variation is 14.352% and compare to KVB is low coefficient of variation of 13.055 % .
Projects the result of Chi-Square Test
Profitability Degrees Calculate Table hypothesis

of d value ( Value Accepted /
freedom x2) Rejected
Net profit in 27 16.720582 40.113 ACCEPTED
margin
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Since the calculated value of Chi-Square (16.7205) is less than the table value (40.113) as
shown in table Projects the result of Chi-Square Test, null hypothesis is accepted. It is
therefore, concluded that there is no significant relationship between the net profit margin of
(AXIS, ICICI, KVB, SIB) private sectors banks in India.
Personal Banking
Accounts Information:-
1) GENERAL SAVINGS A/C
 An account for individuals, either singly or jointly , non-trading organizations/institutions
 Account with cheque book facility can be opened for a minimum amount of Rs500/- at
Rural/Semi-Urban branches and Rs.1000/- at Urban/Metro branches
 Account can be opened even in the name of a minor aged 12, allowing him/her to operate by
self, provided he/she presents himself /herself at the bank for each withdrawal
 A minor who has attained 14 years can open and operate the account individually in same
manner as an adult
 Payment of interest on saving bank A/C is made on a daily product basis and paid half yearly
in the months of September & March
 Multicity cheque book facility
 RTGS/NEFT Facility
 Nomination Facility
 Any Branch Banking (ABB) facility
Features:
 Standing instruction of the account holder with regard to payment of premium, rent, etc. are
accepted and acted upon promptly
 Cheques, Draft, Pension, Dividend warrant, etc. are accepted and collected for credit to the
account.
 Account can be transferred to any other office of the bank, free of charge.
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2) SERVICES CHARGE & FEES:

Any Branch Banking (ABB) Facility is available to customer on
registration. Eligibility criteria and benefits available for various category of customer are as
follows
Classic Current Account:

For traders, businessmen, corporate bodies, etc. who operate their accounts frequently
Minimum amount for opening an account is Rs.5,000/- in Metro branches, Rs3,000/- in Urban
branches,Rs2,000/- in Semi-urban branches and Rs1,000/- in Rural branches
Features:
 Standing instructions of the account holder with regard to payment of premium, rent, etc. are
accepted and acted upon promptly
 Cheques, Drafts, pension, dividend warrants, etc. are accepted and collected for credit to the
account
 Account can be transferred to any other branch of the bank, free of charge.
 ATM cum Debit card facility
 Free Internet/Mobile banking facility
 Doorstep Banking Facility
(3) Smart Current Account:

A zero balance current for traders, businessmen, corporate bodies, etc.
Features:
 No minimum balance stipulation
 No folio charges
 ATM cum Debit card facility
 Free Internet/Mobile banking facility
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 Daily Cash remittance Limits:
 Free of charges up to Rs.10,000
 Beyond Rs.10,000/-(Rs. Per Rs.10,000 up to Rs.1,00,000)
 Beyond Rs.1,00,000/-(Rs per Rs.10,000)
General Fixed Deposit (Income Scheme):-

 Minimum amount for opening account is Rs.100/- Account may also be opened in odd sums.
 Deposits are accepted for period of 7 days and above and even for a period where terminal
quarter or month is incomplete.
 Interest is paid quarterly at the full value of interest. The same is paid monthly at the
discounted value of interest.
Features:
 The maximum period for which term deposits are accepted is 10 years
 Nomination facility available
Exceptions:
 Deposits accepted under court orders.
 Deposits in the names of minors for protection of minors interest. In case of minors, accounts
can be opened.
 In the single name of the minor under guardianship, the deposit being repayable to him/her.
 In the single name of the minor under guardianship, the deposit being repayable to the
guardian.
 In the name of the minor, jointly with the guardian, the deposit being repayable to the jointly /
former or survivor / either or survivor
Cumulative Deposit:
 Recurring deposit scheme which enables the depositor to build up sizeable capital in a regular
 Systematic way.
 The account can be opened for minimum monthly remittance of Rs.100/- or multiples there of
theremittances may also be in odd sums.
 Account can be opened for a minimum period of 6 months and multiples of 3 months.
Page 20
Features:
 The maximum period for which term deposits are accepted is 10 years.
 In case minors, accounts can be opened:
 In the single name of the minor under guardianship, the deposit being repayable to him/her.
guardian.
 In the name of minor, jointly with the guardian, the deposit being repayable to them jointly
/former or survivor / either of survivor.
Exceptions:
 Deposits accepted under Court orders.
 Depositsin the names of minors for protection of minors interest.
Acharya Deposits:
 Senior citizens we salute you. Invest in our Acharya Deposit Scheme. Avail additional interest
for your deposits
 Minimum Amount of deposit – Rs 5,000/-
 Minimum period of Deposit – 6months
 Eligibility: All senior citizens 60 plus, excluding NRIs are eligible.
 Joint Account permitted
 Family Welfare Account:
 Reinvestment deposit scheme. Interest accrues both on the principal and the interest thereon.
 Minimum amount for opening the account is Rs.100/- Accounts may also be opened in odd
sums.
 Deposits are accepted for a minimum period of six months for periods in multiples of three
months or in incomplete quarters
Features:
 The maximum period for which term deposits are accepted in 10 years
 Nomination facility available
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Exceptions:
 Deposits accepted under court order

 Deposits in the names of minors for protection of minors interest
 In case of minors, accounts can be opened in the single name of the minor under
guardianship, the deposit being repayable to him/her
guardian
 In the name of minor, jointly with the guardian, the deposit being repayable to them jointly/
former or survivor / either or survivor.
LOANS:-
EFFECTIVE RATE OF TENURE
INTEREST [% P.A]
Gold Loan-General General Category 11.50% Year / 6 Month
Agricultural Loans Agricultural Loan with 4.00% 1Year
interest subvention
Agricultural Loans 10.50% 1 Year
without interest
subvention
SthreeSakthiGold Special Scheme for 11.50% 1 Year
Women
Kanakashree Overdraft 11.50% 1 Year

Gold Loan Retail Trade 11.50% 1 Year / 6 month
CSB Ezee Gold Ezee Gold Cash 11.50% 6 Month
Cash –General
SB SwarnaSuvidha Gold Loan for salaried 11.50% 1 Year
Employees
Page 22
GOLD LOAN:-
Goods and Services Tax (GST):-
 Goods and Services Tax is the new tax reform introduced in India from 1st July 2017. With
common rates and structures across the country GST aims at bringing uniformity in indirect
taxation.
 How this will impact you?
 Bank’s service charges will now attract GST @ 18%. Please refer to Rates and Charges for
schedule of service charges.
 GST allows you to claim input credit on transaction.
 If you require the GST details of the bank. Please refer to Catholic Syrian Bank - Statewise
GSTIN
 Submit your GSTIN details *New
 If you wish to claim input credit of the tax collected by the bank, you need to submit GST
details to us as per the process mentioned below;
 Now you can link your GSTIN to your CSB accounts online. Your GST registration details
are required for the returns to be filled by us.
 Please ensure the following are at hand before you proceed:
 Your Account Number
 GST Registration Number
 GST Registration Document (upload in JPEG/PDF with file size upto 4 Mb)
 Any active Mobile number (need not be registered to the bank) to receive One Time Password
(OTP)
Page 23
Non-Resident Indian Banking

Life Insurance:
Catholic Syrian Bank has tied up with Edelweiss Tokio Life to offer life insurance solutions
through its branch network.
Edelweiss Tokio Life - Cash Income
Edelweiss Tokio Life - Cash Income is an insurance product that provides protection for life
and generates guaranteed income to meet your yearly expenses during retirement. In this plan,
you pay premium for the first 20 years and get guaranteed pay outs from the 21st year to the
40th year. While the payouts increase by 6% every year, you also get an additional guaranteed
lump sum amount at the end of the 40th year. This product ensures a stream of payments that
help you during your retirement years.
Key Benefits:
 Protection up to 100 years of age
 Guaranteed monthly pay outs to meet expenses
 Increasing pay outs to counter inflation
 Lump sum at the end of 40th year can be reinvested in an annuity
 200% of Sum Assured is Death Benefit after 40th year
 Edelweiss Tokio Life - Edusave
 Edelweiss Tokio Life - EduSave helps you create funds in the future for your child's
education needs.
 What's more! You have the option of pay outs over a period of up to 5 years so that you get
the money when you need it every year.
 In case of unfortunate circumstances such as death of the Life Assured, nominee gets a lump
sum amount, future premiums are waived and the maturity pay out for education need will
continue as planned.
Page 24
Key Benefits:
 Continued benefits after death of life assured
 Option of yearly pay out during education
 Additional bonus pay out
 Enhanced Protection through riders
 Loan facility against your policy
 Edelweiss Tokio Life - GCAP
 Edelweiss Tokio Life – GCAP is a non-linked, non-participating life insurance plan, so that
you can plan to accumulate wealth for meeting those grand plans to celebrate your
achievements. What makes our offering special is that we understand that you need to
maximize the wealth you can generate from your hard-earned money and enjoy the best
possible. The plan offers you a fully guaranteed maturity benefit and death benefit. What’s
more! You also get a Guaranteed Accrual Addition.
Key Benefits:
 All the benefits are guaranteed upfront
 Simplified product structure for easy understanding
 Get additional benefits from 9th policy year through Guaranteed Accrual Additions
 Multiple options of policy term and premium paying term to suit your requirements
 Get extra benefit for higher premium
 Loan facility to meet any urgent / unforeseen liquidity requirements
 Option to make your cover more comprehensive through riders
 Edelweiss Tokio Life - Income Replacement
 Edelweiss Tokio Life – Income Replacement plan is a non-linked, non-participating life
insurance (protection plan). The plan aims to provide a cost-friendly solution for protecting
your aspirations for your loved ones. You can avail lower rates for leading a healthy lifestyle
with the help of this plan.
Page 25
Key Benefits:
 Cost friendly solutions providing complete protection
 Reduced cost of protection for higher Sum Assured
 Increased monthly benefits by 5% every year
 Lower rates available for leading healthy lifestyle
 Edelweiss Tokio Life - Save n Prosper (WA)
 Save n Prosper is an Endowment Assurance plan with profits which offers you tax benefits as
well as discounts and bonuses on the sum assured. The Endowment Assurance plan helps you
save for your child and get benefits as well.
Key Benefits:
 Get tax-free maturity benefit equal to initial sum assured plus accrued bonuses
 Receive 90% of the surplus generated as bonus
 Simplified product structure makes product understanding easier
 Get to choose among various policy terms and premium paying terms which suit your needs
 Get discounts for higher investment amounts
 Get loan facility to meet any unforeseen or urgent requirements
 You can further increase your benefits by adding riders to the plan
 Edelweiss Tokio Life - Protection
 Edelweiss Tokio Life - Protection is a simple term offering that provides a lump sum to your
family in the case of your unfortunate death. Your family maintains the lifestyle you have
always provided for them while at the same time securing them from immediate expenses at
the time of your death
Key Benefits:
 Discounts for Higher Cover Cost reduces further for higher Sum Assured
 Cover till age 70 Depending on your age, your cover may extend up to 70 years
 Low cost option to secure your family. Cost friendly solution providing complete protection
of your aspirations for your loved ones. Large cover amount payable in the event of pre-
mature death, to support the family
 Short duration premium for extended coverage. Limited premium payment option to suit the
stability of your current income stream and yet avail the cover for a longer policy term
Page 26
 Lower Rates for Good Health. Lower rates are available for leading healthy lifestyle by way
of non-consumption of tobacco
 About HDFC Life Insurance
 Established in 2000, HDFC Life is a leading long-term life insurance solutions provider in
India, offering a range of individual and group insurance solutions that meet various customer
needs such as Protection, Pension, Savings, Investment and Health. Customers have the added
advantage of customising plans, by adding optional benefits called riders, at a nominal price.
As on March 31st, 2017, the Company has 30 individual and 10 group products in its
portfolio, along with 8 optional rider benefits catering to a diverse range of customer needs.
 HDFC Life continues to benefit from having a wide reach with 414 HDFC Life offices in
India and 12,000+ distributor touch-points. The Company has a strong base of Financial
Consultants. The Company has also recently completed incorporation of its wholly owned
subsidiary in Dubai to offer reinsurance services.
 HDFC Standard Life Insurance Company Limited ('HDFC Life' / ‘Company’) is a joint
venture between HDFC Ltd., India’s leading housing finance institution and Standard Life, a
global investment company.
 HDFC Life Click 2 Protect Plus
 HDFC Life Click 2 Protect Plus is a term insurance plan in India which provides you
comprehensive protection at an affordable price and helps you to protect yourself and your
loved ones against the uncertainties that life may throw at you.
 HDFC Life Cancer Care
 HDFC Life Cancer Care offers lump sum benefit on diagnosis of Cancer that helps to protect
your income and savings from expenses that aren't covered by your major medical coverage,
like Out of pocket medical expenses, Out of Network specialist, Experimental Cancer
Treatment, Travel & Lodging etc. when treatment is far and so on. C
 HDFC Life ClassicAssure Plus
 HDFC Life ClassicAssure Plus is an investment cum insurance plan that offers guaranteed
benefit while letting your money grow. The plan is ideal for meeting long term financial goals
as well as creating a financial cushion to secure your family’s future.
 HDFC Life Super Income Plan
 HDFC Life Super Income Plan is a participating regular income plan in India with guaranteed
benefits plus bonuses to best plan your investment needs. This money back policy offers
Page 27
guaranteed income for a period of 8 to 15 years and is ideal for individuals who need regular
income at their disposal so that they don’t have to worry about future expenses and fulfill
their financial goals uninterrupted.
 HDFC Life Super Savings Plan
 HDFC Life Super Savings Plan is a long term savings investment plan to safeguard the
financial interests of your loved ones in your absence.
 HDFC Life YoungStar Udaan is a traditional participating insurance plan. This plan is ideal
for parents who wish to make provision for academic expenses that occur prior to college
education as well as specific goals like college fees or marriage expenses etc.
 HDFC Life Sanchay is a non-participating insurance plan that offers guaranteed benefits
along with flexibility to choose your investment horizon.
 HDFC Life SampoornSamridhi Plus is a limited premium endowment plan with an option to
extend life coverage up to 100 years under whole life coverage.
 Saving for your future is important, but what is also important is to protect those savings.
HDFC Life Uday helps you do just that with benefits like guaranteed additions and bonuses
while ensuring that your family receives a lump sum benefit in case of your unfortunate death.
Page 28
INSURANCE:-
General Insurance:
There are certain risks and unforeseen events in life such as illnesses, accident, damage to
vehicle, burglary at home or natural calamities causing destruction of property that can impact
our lives adversely. Without any insurance against these events, we are vulnerable and our
finances can get severely impacted.
Catholic Syrian Bank has tied up with ICICI Lombard to offer their range of general
insurance solutions to the customers to ensure that financial impact of these risks are
mitigated.
Health Insurance:
With healthcare expenses on the rise and current lifestyle of long and stressful working hours,
any critical illness or sudden medical emergency can adversely impact you financially. Enroll
for suitable Health insurance plan and secure your family’s health and your own!
Invest tax-efficient Health Insurance solutions to save tax under Sec 80D.
Travel Insurance:
Planning to travel abroad for a vacation or for business? Do not let events such as baggage
loss, passport loss, a medical emergency or an accident spoil your travel experience. Don’t
wait; buy Travel Insurance policies and travel worry-free.
Car Insurance:
Car insurance covers you and your car against various on-road and off-road emergencies.
Home Insurance:
Your home provides you the warmth, security and peace that one looks forward to at the end
of a hard day's work. Safeguard your home against burglary and natural or manmade
calamities with Home Insurance policy.
Student Medical Insurance:

Student travel insurance provides you with medical and non-medical insurance coverage
throughout your period of study overseas.
Page 29
DISCLAIMER:
The advertisement contains only an indication of the cover offered. For more details on risk
factors, terms, conditions and exclusions, please read the sales brochure carefully before
concluding a sale. Insurance is underwritten by ICICI Lombard General Insurance Company
Limited (ICICI Lombard).
The Catholic Syrian Bank Limited, CSB Bhavan, St. Mary’s College Road PB No-502,
Thrissur, Kerala-680020 is licensed as a corporate agent (license no.: CA0015) of ICICI
Lombard General Insurance Company Limited having its registered office at ICICI Lombard
House, 414, Veer Savarkar Marg, Near Siddhivinayak Temple, Prabhadevi Mumbai 400025.
IRDA Reg. No. 115. The Catholic Syrian Bank Limited customer participation in the policy is
entirely voluntary.
Travel Insurance:
Travel Insurance – the secret of a happy holiday! Travel insurance ensures that unanticipated
events like medical emergencies, trip cancellation, lost luggage, flight accident and other
losses incurred while traveling, either internationally or domestically don’t spoil your holiday.
Top Features:
 Secure your overseas trip with plans starting at just Rs.306/-*
 Get your travel insurance quickly. No medical check up required till the age of 80
 Get an international sim for every international travel quote, absolutely free!
Other Features:
 Take advantage of cashless hospitalization across the globe with our health cover
 Great coverage for trips ranging till 180 days with extension for up to 365 days
 Automated extensions for your policy due to medical emergencies or evacuation (30
days) and delay of common carrier (up to 7 days)
 Secure yourself from the expenses arising from lost passports, check-in baggage
 Avail the benefit of coverage against pre-existing, life-threatening ailments
 Customized and special plans for regions such as the Middle East, Australia & New
Zealand, Schengen and Asia
Page 30
 Choose from a variety of plans from individual, family to senior citizens.
DIGITAL ACCESS
Net Banking:-
As an introductory offer Internet banking facility is offered free to all new SB, CD and OD
customers. A registered customer can avail the following facilities through Internet banking.
Non-financial Transaction:-
1) Balance Enquiry
2) Account Statement Viewing/Printing
3) Cheque Book Request
4) Term Deposit Details
5) RD Ledger
6) Term Loan Summary
7) ATM Debit card requests - blocking, new/duplicate card, PIN requests
8) Online transaction limit control - Increase/curtail of limits
9) Register for CSB Mobile banking
10) Password unlock
11) Instant beneficiary addition, no waiting period
Financial Transactions:-
1) Inter-Branch Fund Transfer
2) Inter-Bank Fund Transfer
3) Utility payments- prepaid recharge, post-paid bill and other payments like water,
electricity bills, DTH Top-up, insurance premium.
4) Ticketing- Allows to browse, select and purchase movie and travel tickets.
5) Biller registration facility
Page 31
Mobile Banking:-
We are glad to introduce Mobile Banking to provide our valuable customers with the latest in
service. To register for CSB Mobile banking facility SMS CSBMOB to or visit nearest CSB
branch.
SMS charges applicable
A registered customer can avail the following facilities through CSB Mobile banking.
Balance enquiry
Fund transfer between accounts within the bank.
Mini statement:-
IMPS fund transfers, 24*7 & instant
All the above facilities will be available to savings bank account and current account holders
on registration for the facility.
Pre-requisites for mobile handset:-
A. The handset should be Java-enabled.

B. GPRS should be enabled.
C. GSM enabled handsets.
E-Passbook:-
Don’t worries about coming to the branch to update your passbook, now get your passbook on
your smart phone.
Unlike mobile banking, you need not fill any application form- just download the application
and start using it. You will need to generate an MPIN.
Page 32
Features of e-Passbook:
1. All your account transactions are updated automatically

2. 3 language options available - English, Malayalam and Tamil
3. No need to wait for SMS alerts
4. Keep track of Savings, Current, Overdraft, Loans and Deposits accounts
5. Get your account statements instantly
6. You can access the app offline too
7. Search and filter facility to find a transaction
8. You can view multiple accounts linked to same client ID
CSB Phone Banking:-

We value your relationship and we believe that your satisfaction is important to us. CSB has a
dedicated Phone Banking team to help you with all your banking queries and transactions.
Our team of advisors are available 7 days a week from 8.00 AM to 8.00 PM and including
holidays.
Our team will be happy to help you with the following services (Enquiries, Requests &
Grievances).
1) Account Related Services

2) Internet Banking Services
3) Mobile Banking Services
4) Fixed Deposit Enquiries
5) ATM Card Hot-listing
6) ATM Card Services
7) Cheque Book Requests
8) Exchange Rate Enquiries
9) International Fund Transfer
Page 33
Personal Loan
ICICI Bank keeping in mind the rising expenses and needs of an individual provides for
personal loans. ICICI personal loan also known as unsecured loans are loans made available
to individuals in order to fulfil certain unavoidable expenses such as a wedding, home
renovation, purchase of car, to finance a vacation of one kind or another and a lot of other
things. These loans are generally of a shorter term and come at higher rate of interest than a
secured loan like a home equity loan. Such loans are available without any security or
collateral to ensure repayment of the amount. These personal loans are made available to the
customers in a lot of variants and the application process is also kept simple and hassle free in
order to ensure easy approval of the loan and fast disbursement of the total amount.
Why Opt for ICICI Bank Personal Loan?
 ICICI bank provides for a fixed rate of interest throughout the loan period. It means
that the applicant need not worry about the changing interest rates and changes in the
financial position of the economy.
 The documentation process required for applying and then eventually availing the loan
is very simple and hassle-free. The bank demands basic KYC documents to grant the
loan thus avoiding any complicated documentation process
 Not only is the documentation simpler, the loan processing and sanctioning process is
also simple and quick. Loans are disbursed quickly without a long waiting period so
that customers may make use of the required finance.
 It allows for direct credit of the ICICI personal loan to the applicant’s account through
Fund Transfer. This facility makes funds easily available. The applicant is saved from
the hassles of getting the cheque cleared.
 ICICI bank offers personal loan of up to RS 40 lakhs for salaried employees, Rs 40
lakhs for self employed professionals and up to Rs 40 lakhs for doctors.
Page 34
Features of ICICI Personal Loan

 It is a multipurpose loan. It can be taken for purposes such as wedding, home
renovation, vacations or funding of certain courses. In short, these loans are issued for
expenses which are unavoidable and need to be made on an urgent basis.
 ICICI Bank personal loan comes at a fixed rate of interest. However, the amount of
interest keeps getting reduced on every installment paid, because it is calculated on the
overdue amount i.e. the amount to be repaid after the EMI and Interest paid.
 These loans provide a tenure period ranging from 12 months to a maximum of 60
months i.e. 5 years.
 The loans are available easily without the requirement of any collateral or security
deposit. Hence, these loans are also known as unsecured loans. Any form of security is
not required to apply for a ICICI Bank personal loan
 These loans come at low interest rates, which make the EMIs affordable to an average
borrower
 Bank provides for repayment of the ICICI Bank personal loan through Electronic
Clearing Service (ECS), PDC and Auto Debit Facility i.e. the EMI amount is debited
directly from the applicant’s bank account.
 There are no other types of personal loans available with the ICICI Bank.
 Any prepayment made towards the loan after paying off 6 Equated Monthly
Instalments (EMIs) would also attract prepayment charges. The charges, as applicable,
are mentioned in the bank’s schedule of charges. It is represented as a percentage of
the outstanding balance of the loan as on the date the prepayment is sought.
 Part-prepayment, which means paying off the loan burden partly before the due date,
is not allowed under the loan. The borrower would have to prepay the entire
outstanding balance of the loan completely and not partially.
 ICICI Personal Loan Interest Rate
Page 35
ICICI Personal Loan Eligibility
Not everybody can apply for ICICI Bank personal loan. The bank lays down some simple and
common criteria required to be met by potential borrowers for banks to offer personal loans.
Such criteria for personal loan requirements include:
1) Age:
The loan is issued to all salaried, non-salaried or self-employed professionals who meet the
eligibility criteria. However, the criteria defers from one to other depending upon the nature
of their employment. A salaried employee between the age group of 23-58 years can apply for
an ICICI Bank personal loan. A self employed professional, excluding doctors between the
age group of 28-65 years is eligible for loan. However, the minimum age of applying for an
ICICI personal loan with the bank by a doctor is kept at 25 years.
2) Income:
For a Salaried employee residing in non-metros, a minimum monthly income of Rs.17500 is
required. For professionals residing in Mumbai & Delhi, a minimum monthly income
required for an ICICI Bank Personal loan is Rs.25000 and for professionals in other cities like
Chennai, Hyderabad, Pune, Bangalore and Kolkata a minimum salary of Rs.20000 per month
is required. A self employed non professional with a minimum turnover of Rs.40 lakhs and A
self employed professional with a minimum turnover of Rs.15 lakhs, as per audited financials
are eligible for loan with the bank.
3) Job/Business stability:
A salaried applicant must have had spent a minimum of two years at his/her current job,
whereas, a self employed professional should have been in his/her current business for a
minimum period of 5 years. A doctor with a working experience of 3 years is also eligible for
the ICICI Bank personal loan.
Page 36
4) Residence:
A salaried employee must have spent a minimum of 1 year in his/her current residence.A non
salaried, self employed professional should have a minimum of 1 year relationship with the
bank. Or an asset relationship i.e. should have had a past or existing loan relationship with the
bank with a good repayment record.A non salaried, self employed professional should have a
minimum PAT of Rs.2 lakhs and self employed non-professionals should have a minimum
PAT of Rs.1 lakhs.
5) Interest Rates:
ICICI bank extends personal loans at a range of interest rates ranging from 11.99% to
21.99% depending upon the applicant’s segment, category and location. These interest rates
are kept in accordance with the amount of loan disbursed during previous quarter. The
categories kept in mind for reaching the interest rate range include loan amount, customer
relationships, type of corporate/business etc. However, it excludes subsidy and government
schemes.
Personal Loan Eligibility Calculator:-

Personal loan as the name suggests is the loan that can be availed for any personal reason. The
amount borrowed can be repaid in easy EMIs within the given tenure. It can be availed for
education, marriage, home renovation or any other thing. The bank or lender will not ask for the
reason for availing the same.
Personal loan eligibility calculator helps you know your EMI and the loan amount you can avail
depending on your monthly income, existing EMI and interest rate. With the help of the calculator
you can even know the loan tenure.
Page 37
Personal loan can be availed by both salaried and self employed and here are the
requirements:
Minimum-21years
Age Maximum- 60 years
Employment
Type Salaried/Self-employed professionals/non-professionals
Employed/In-business for at least 2 years, at least 1 years with current

Stability employer/business
Income Rs.4,000 – Rs.20,000 net income per month
Maximum
Loan Up to Rs.50 lakhs (Based on income, repayment capacity and existing
Amount EMIs)
Documentation Required:
Any one document is required which would fulfil the requirement of the identity proof of the
borrower. The borrower may choose from his copy of passport, Aadhar Card, driving license,
or Voter ID card to submit as a valid identity proof. All of these documents contain the
applicant’s photograph against his recorded name and therefore serve as a legal and valid ID
proof.
For submitting the address proof, the borrower might submit either of his ration card,
passport, electricity or phone bill, etc. where the registered address of the individual is
recorded. These documents should, however, be not more than 3 months old as on the date of
loan application
Page 38
A copy of the bank statement or a copy of the bank’s passbook with the list of transactions
recorded for the last 3 months will be required which would ascertain the financial position of
the individual applying for the loan and the bank would be able to ascertain his
creditworthiness.
If the individual is in gainful employment which provides his with salary, the latest salary slip
of the individual or his current salary certificate along with his Form 16 would be required to
ascertain the financial position.
Photographs: 2 passport size photographs in case of both salaried and non-salaried

applicants.
Along with the above mentioned documents, a non-salariedself-employed applicant must

submit a few more documents in order to raise loan. The documents are:
 Proof of residence or office ownership
 Proof of continuity of business
 Office address proof.
I-Loans:
ICICI bank caters to the needs of customers of wanting to know the status of their loan.
Hence, it provides the facility of I-Loans. It’s a mobile application which gives them access to
their loan account. Through this app, the user can get details of the last 5 transactions,
outstanding balance, account statement, amortization schedule and interest certificate. It’s
very convenient as the applicant need not be attached to the wire in order to get details. The
user must have a GPRS enabled handset with them.
Steps to activate I-Loans:

The user must download ICICI bank I-Loans app from google store or IPhone app store.
However, the app should be downloaded only from phone with the registered number on the
bank loan account. After downloading the app, the user needs to select Activate Now tab and
set a four digit pin.
Page 39
Fees & Charges

There are some charges which are incurred on the loan applied. These charges include:
Loan Processing Charges: this charge is also called origination charges. These charges
are levied at up to 2.50% of the loan amount plus service tax. These are non-refundable
charges.
Prepayment Charges: Prepayment of a loan means paying off the loan instalments well
before the stipulated tenure of the loan at which the loan was borrowed. Prepayment is
available for the benefit of customers but comes with certain terms and conditions.
Prepayment can be done only after a minimum period of 6 months or 180 days post the
issuance of loan and not before that. Prepayment can only be done of the full outstanding
amount because the facility of part-prepayment is not available. Also, the prepayment charges
as applicable would be calculated on the outstanding loan amount. The charges stand at 5% of
the principal outstanding amount.
Late Payment charges: The applicant must make sure that the EMI’s are paid well on
time; otherwise the bank levies a late payment fee of 2% on the EMI per month.
Cheque Swapping Charges: This charge stand sat Rs.500 per transaction.
Amortization schedule charges: The details of the loan and the interest paid and the
outstanding amount can be availed in the form of a periodic table from the bank. The charge
for obtaining such a schedule from the Bank stands at Rs.200 per schedule. This charge is
Inclusive of service tax.
Statement of account charges: The customer can also apply for a statement showing
the details of the customer’s transactions. The bank charges Rs.200 per statement, again
inclusive of service.
Prepayment/foreclosure statement charges: Prepayment/foreclosure statements are
available at a minimal charge of Rs.100 (inclusive of service tax) per statement.
Duplicate No Objection/ no Due certificate: A no Due certificates duplicate or the
duplicate of a No Objection Certificate is available which in cursa charge of Rs.500 per
certificate duplicate including any service tax applicable.
Duplicate Repayment/Foreclosure certificate: Duplicate Repayment/Foreclosure
certificates are also available at a charges of Rs.200 per certificate. This charge is inclusive of
service tax.
Page 40
Loan Cancellation Charges – if the borrower seeks to cancel the loan for which the
application has already been made, a loan cancellation charge would be payable. Such charge
Is equal to Rs.3000 per the applicable service tax
EMI Bounce Charges – the borrower may choose to repay the Equated Monthly Instalments
(EMIs) through post-dated cheques, Electronic Clearing System, or by placing a standing
instruction. If the Equated Monthly Instalments paid bounce back due to any reasons, the bank
would levy charges for such bounce. The applicable charge is equivalent to Rs.400 per bounce and
the applicable service tax.
However, every applicant must remember a few points which are applicable to the above
mentioned charges:
The bank has the sole discretion over charging the service tax and other charges as applicable
as per prevailing rate.
The above said charges are applicable only for loans availed from 1ST August 2009 and also
the current service tax rate stands at 14%.
Annual Percentage Rate:

The Annual percentage rate is a method used to calculate the annual credit cost including
interest rate and processing fee. However, it excludes prepayment charges. The bank provides
its customers with an APR calculator to get a clear picture of the total charges and expenses to
be borne by the customer in order to avail the loan.
ICICI bank extends personal loan to both its existing customers as well as new ones .If one
meets the stipulated ICICI Bank personal loan amount eligibility criteria; he/she can easily
apply for a loan with the bank. Not only does it extend loan for its existing customers, it also
has some pre-approved offers for each of its customers. These offers are made to the customer
based on their relationship with the bank, their credit worthiness and loyalty towards the bank.
To avail the offer, the customer needs to login to the bank’s website, select the pre-approved
tab under personal loans option. A new webpage opens, wherein; the customer is required to
sign-in using his debit card number/ credit card number or an existing loan a/c number. After
having done so the customer gets access to his/her offers. He then needs to complete all the
required formalities in order to benefit from the offer.
Page 41
Home Loan Interest Rates:-

Building a house is a big responsibility and involves a lot of planning from the architecture to
choosing the right apartment and designing its interiors. All this requires loads of efforts and
finances. Getting a home loan from ICICI is quick and an easy process. With easy eligibility
criteria, low EMIs at affordable and attractive rates of interest, ICICI Bank Home Loans are
superb to aid your new home’s financial needs. ICICI bank, which is also known for its
technological advancements, has a system by which you can apply for the loan through a
Tablet and Smartphone, ensuring faster processing and quick loan disbursal. They also offer
pre-approved home loans which further shortens the whole application process.
ICICI Home Loan Interest Rates

ICICI Bank Home Loans offer practical, attractive and affordable rates of interest. With
ICICI, borrowers are offered fixed interest rate for the first 10 years, and a choice of fixed or
floating interest rates thereafter. Following are the tables giving the interest rates on ICICI
home loans to different borrowers-
Borrower Floating Full-tenor Fixed

ROI ROI
Women 9.60%to9.8 9.70%to10.5%
5%
Weaker 9.65%to9.9 9.75to10.10%
Section 0%
Self 9.65%to9.9 9.75%to10.10%
Employed 0%
All ICICI Bank floating rate home loans are benchmarked to 1 year MCLR which is 9.10%
p.a. w.e.f. Aug 01, 2016.
Page 42
For Women:
Applicable interest rate on ICICI home loan where a woman is the main applicant for the loan
and is either the owner or co-owner of the property that is being financed:
Floating Rate Home Loan
Loan amount Rate calculation Interest

category rate
Up to Rs.5 crores 1 Year 9.40%
MCLR+0.20%
Over Rs.5 crores 1 Year 9.65%
MCLR+0.45%
Fixed Rate for 5 years or 10 year
Loan amount category Rate Interest

calculation rate
Up to Rs.30 lakh 1 Year 9.40%
MCLR+0.20%
Rs.30 lakh to Rs.5 1 Year 9.50%
crores MCLR+0.30%
Over Rs.5 crores 1 Year 9.75%
MCLR+0.45%
Full Tenor Fixed Rate
Loan amount category Interest

rate
Up to Rs.30 lakh 9.70%
Rs.30 lakh to Rs.5 crores 9.80%
Over Rs.5 crores 10.05%
Page 43
For Self-employed Individual:
Applicable ICICI home loan interest rates for a self-employed individual:
Floating interest rates
Loan amount
category Rate calculation Interest rates
1 year MCLR +
Up to Rs.1.5 crore 0.35% 9.45%
1 year MCLR + 9.55% to

Over Rs.1.5 crore (0.45% to 0.60%) 9.70%
Fixed rate of interest for 2 years or 3 years
Loan
amount
category Rate calculation Applicable rate
Up to Rs. 1.5 1 year MCLR +

crore 0.35% 9.45%
Over Rs. 1.5 1 year MCLR +

crore (0.45% to 0.60%) 9.55% to 9.70%
Page 44
Fixed rate of interest for 5 years or 10 years
Loan amount
category Rate calculation Applicable rate
Up to Rs. 30
lakhs 1 year MCLR + 0.35% 9.45%
Over Rs. 30 1 year MCLR +

lakhs (0.45% to 0.70%) 9.55% to 9.80%
Fixed rate of interest for full tenor
Loan amount category Applicable interest
Up to Rs.30 lakhs 9.75%
Over Rs.30 lakhs 9.85% to 10.10%
These interest rates are subjected to change depending upon the bank policies.
Page 45
Factors That Affect ICICI Bank Home Loan Interest Rates

Interest rates vary according to a few factors including the loan amount, category of borrower,
Period of the loan and fixed or floating rate of interest.
There are also a number of other factors, apart from who is the applicant for the particular
home loan scheme come into play at the time of determining the home loan interest rate.
The cost of funds or the average by region of the interest expenses that are incurred by the
financial institutions. This average is in turn used as the base rate for the calculation of the
ICICI bank home loan interest rate.
For most home loans with a maturity period of over five years, the banks incur some liability
management costs. These costs are an add-on charge to the basic liability, therefore, they add
to the home loan interest rate. However, some of the home loans are then priced to the
advantage of the main applicant.
Another factor depends on the total tenure of the home loan. Based on the loan term, the costs
of administering the specific schemes are taken into consideration. This is done to cover a set
limit for profit margins for the bank. This again ends up affecting the home loan interest rate.
The marketing strategy that is formulated in accordance with the financial institution’s
competition is another influencing factor in the calculating of the home loan interest rate. The
ICICI housing loan interest rate is varied to keep up with the prevailing market trends to avoid
being priced out of the market.
Apart from the above-mentioned factors, there are also a number of individual factors that
affect the rate of interest that is applicable to a home loan. Whether an applicant avails an
ICICI home loan online, or in person, the factors that can affect the rate of interest are listed
as follows:
Page 46
Source of Income:
A minimum income requirement is always one of the eligibility criteria for home loans. For
this criterion, applicants have to provide adequate proof that the mentioned criteria are
fulfilled by them. The source of that income is sometimes also considered as a factor in the
interest that is offered to an applicant. Generally, banks consider salaried applicants to have a
better repayment capability as compared to self-employed individuals, owing to the stability
of their monthly income. Therefore, the source of income ends up being one of the factors that
can affect the rate of interest offered to an individual.
Sector of Employment:
Another factor that plays a role in the applicable interest is the applicant’s sector of
employment. Most banks classify the various employment sectors into different risk levels.
Some of the sectors are considered to be more stable than other sectors, and therefore,
influencing an applicant’s repayment capability. ICICI offers a home loan to all sectors, but
the interest may vary with each. The company that employs salaried individuals is also
considered at the time of processing a loan application, and companies that are well
established and known are preferred by banks.
CIBIL Score:
The CIBIL score and the credit history of applicants are something that is always checked
when one applies for a loan. The credit history of an applicant is a certificate of their
repayment history, whether they have default payments, or whether they always pay on time.
A good credit score, of course, shows that the applicant has a good financial history, and that
helps in decreasing the risk factor involved in lending to those applicants.
Page 47
MUTUAL FUND
ICICI Prudential Mutual Fund: Overview
ICICI Prudential Asset Management Company Ltd. is one of the most prominent asset
management companies in India. The ICICI-Pru AMC was formed in the year 1998 as a joint
venture between ICICI Bank and Prudential Plc, which is one of largest players in the
financial services sectors from UK. As on date, the AMC has established a position of
supremacy in the Indian Mutual Fund market.
With a current strength of more than 1100 branches and presence across120 locations, ICICI–
Purchase noteworthy AUM size in the mutual fund segment. ICICI-Prudential AMC caters
the Portfolio Management needs of investors from various segment of Indian Society, along
With International Advisory Mandates for investors based out of international markets. The
products offered by ICICI MF are crafted to meet the client expectation backed by Investor
centric approach. The products are a perfect blend of investment expertise, process
Orientation and resource bandwidth.
ICICI BANK
ICICI Bank is one of the largest private sector banks in India with total assets of Rs. 6,461.29
billion as on March 31, 2015 and profit after tax of Rs. 111.75 billion for the financial year
ended on March 31, 2015. ICICI Bank has an extensive network of 4,450 Branches and about
13,916 ATMs across India.
ICICI Bank caters to the daily financial needs of millions of customers in India and also
globally through its diversified banking products and financial services to individual &
corporate customers. ICICI Bank is known for creating a next generation delivery channels
and a wide gamut of value added services delivered through its specialized subsidiaries in the
areas of life and non-life insurance, investment banking, venture capital and asset
management.
Apart from its dominant presence in India, ICICI bank also has subsidiaries in the United
Kingdom, Russia and Canada and branches in the United States, Singapore, Bahrain, Hong
Kong, Sri Lanka, Qatar and Dubai. ICICI bank also operates an International Finance Centre
and representative offices in United Arab Emirates, China, South Africa, Bangladesh,
Thailand, Malaysia and Indonesia. The UK subsidiary has established its branches in Belgium
and Germany.
Page 48
Prudential Group
The Prudential group is one of the world’s leading financial services groups with significant
global operations in Asia, the US and the UK. Prudential caters to more than 23 million
customers globally and had £427 billion worth of assets under management as of end 2015.
The PRUDENTIAL Group is consolidated around 4 main business verticals.

Prudential Corporation Asia (PCA)
Prudential is one of the biggest life insurance providers covering more than 12 major markets
in Asia with manpower of more than 350,000 agents across the region. It had approx GBP
53.8 billion in AUM as at 30 June 2012 and the company manages funds across a wide span
of asset classes including fixed income & equities.
Jackson National Life Insurance Company
Jackson National Life Insurance in a prominent insurance provider from the US with
specialized products in retirement savings and income solutions. Jackson is also one of the
leading service providers of the variable annuities in the US.
Prudential UK & Europe (PUE)
Prudential UK is one of the top insurance service providers dealing in life and pensions
products that serve almost 7 million customers in the United Kingdom.
M&G
M&G is a concern of the Prudential UK and European fund management business with
dedicated services in investing money for the individual and also institutional clients for more
than 80 years and now enjoys total assets under management of £204 billion as on 30 June
2012.
Page 49
PRODUCT OFFERED BY ICICI MUTUAL FUND

The salient features if ICICI- PRU MUTUAL FUND products are
ICICI Prudential MF asset management company (AMC) has a robust multi-channel
distribution network which provides an inclusive range of savings, investment and protection
products.
Since inception, ICICI Mutual Funds have a successful record of offering all inclusive
products, tools and design support when offering multiple variants of Mutual fund products in
India.
The products offered at ICICI-PRU MF are known for their proficiency in areas such as
longevity, risk management and multi-asset investment. All this ensures back up of the
financial strength of investors and thus creates a highly respected brand.
Over a long period of time, ICICI-MF has created a sustainable means so that business is
strongly positioned to continue pursuing a value-driven approach built around our nucleus of
strength along with profits and annuities.
With its intensive research based investment methodology, ICICI-Prudential understands and
responds to the investment needs of its customers.
While designing each product, the actual need of investor and their risk appetite are at the
heart of each product offering.
Apart from generating sustainable value for their shareholders, ICICI - PRU mutual funds
keeps a persistent focus on meeting the customer’s savings, income and protection needs. A
disciplined approach to investments leads to the most profitable growth opportunities.
Page 50
Product Categories @ ICICI- PRU Mutual Funds

Equity Funds
ICICI- Pru Equity funds are intended to generate long-term capital appreciation and income
distribution to its unit holders by investing in a portfolio which is mainly focused on equity
and equity related securities. The portfolio consists of about 20 large cap companies and the
balance in debt securities and money market instruments.Equity funds are declassified in
below mentioned categories
Aggressive Investment funds - These funds are positioned aggressively to gain from
recovery in the economy and commodity prices
Moderate-risk Investments funds - These are diversified funds which can provide
long term wealth creation.
Asset Allocation/Balanced Investments funds - The fund aim to benefit from
volatility and can be suitable for investors aiming to participate in equities that are less
volatility than market ups and downs.
Thematic/Sector Fund - For thematic/sectoral funds, investors should invest in them as
part of a pre-decided tactical allocation.
Hybrid Funds
ICIC- Pru Hybrid funds are offered to investors who want access to a regular source of
income through investments in both debt/money market instruments as well as equities. Apart
from income generation from the debt part, hybrid funds also generate long term capital
appreciation from the equity portion under the Scheme.
Debt Funds
ICICI – Pru MF offers various debt mutual funds products which are intended to provide
reasonable returns proportionate with low risk and high liquidity level. The investments are
primarily done in money market and debt securities.
Page 51
Fund of Funds
ICICI Pru FOF mutual funds schemes are designed with two level of investment objective.
The primary investment objective is to offer reasonable returns in proportion with lower risk
factor and a high level of liquidity. The investment is mostly done in the schemes of domestic
or offshore Mutual Fund(s) having asset allocation to Money market and debt securities. This
Plan is suitable for investors who have a low risk appetite and a shorter duration of
investment.
Fund Managers ICICI-PRU MUTUAL FUND

The following is the list of leading funds and their managers at ICICI-PRU Mutual Funds.
ICICI Prudential Balanced Advantage Fund the Equity Portion is managed by Manish
Gunwani, Ashwin Jain and RajatChandak and Debt Portion by Manish Banthia.
ICICI Prudential Equity - Arbitrage Fund the Equity Portion is managed by KayzadEghlim
and Debt Portion by Manish Banthia.
CICI Prudential Balanced Fund the Equity Portion is managed by SankaranNaren and Atul
Patel and Debt Portion by Manish Banthia.
ICICI Prudential Equity Income Fund the Equity Portion is managed by SankaranNaren and
ChintanHaria and Debt Portion by Manish Banthia.
ICICI Prudential Child Care Plan (Study Plan) the Equity Portion is managed by
RajatChandak and Debt Portion by Manish Banthia.
ICICI Prudential MIP 25 the Equity Portion is managed by RajatChandak and Debt Portion
by Manish Banthia.
ICICI Prudential Monthly Income Plan the Equity Portion is managed by RajatChandak and
Debt Portion by Manish Banthia.
ICICI Prudential Regular Income Fund the Equity Portion is managed by RajatChandak and
Debt Portion by Rahul Bhuskute.
ICICI Prudential Child Care Plan (Gift Plan) the Equity Portion is managed by George Heber
Joseph and Debt Portion by Manish Banthia.
ICICI Prudential Blended Plan - Plan B the Equity Portion is managed by KayzadEghlim and
Debt Portion by Rahul Goswami and Chandni Gupta.
ICICI Prudential Indo Asia Equity Fund the India Portion is managed by
SankaranNaren&Atul Patel and Asia Portion by Shalya Shah.
Page 52
ICICI Prudential Balanced Fund: Overview

ICICI Prudential Balanced Fund is a scheme that aims to offer a balance between risk and
returns by investing in both equities as well as debt instruments. The does this by taking care
of the asset allocation through the constant investigation of market outlook and portfolio
performance. Based on the analysis of various market factors, this mutual fund increases or
decreases the equity exposure depending upon the market outlook, while investing the balance
amount in its debt portfolio for maintaining the balance of returns and risk. ICICI Prudential
Balanced Fund is useful for those investors who are seeking a medium to long term wealth
creation solution. By investing in both equity and debt instruments ICICI Prudential Balanced
Fund offers dual benefits of growth from equity instruments and a steady income from debt
instruments. Due to the diversification, it offers lower risk and consistent returns to the
investor.
About Balanced Funds
A balanced fund combines a bond component, a stock component and sometimes a money
market component in a single portfolio. Balanced Funds often called hybrid funds yield
returns from both equity and debt funds and offers a much lower risk as compared to many
other investment schemes. Investing in a balanced fund would be ideal for those investors
who are seeking investments which come with fixed income, safety, and capital appreciation.
Asset allocation is a major factor for the success of an investment as it helps in reducing the
volatility of returns. By making investments in equity instruments for capital appreciation and
in debt instruments for stable returns, one can reduce the instability of returns by performing
proper research and analysis of current market trends. Based on the analysis, the fund
manager can also increase or decrease the exposure into specific investment instruments.
Investment Objective:
ICICI Prudential Balanced Fund has the objective to invest in equity related securities as well
as money market securities to generate fixed income along with long-term capital
appreciation. The approximate debt allocation would be around 40% to 49% with a minimum
of 20% at any given point of time. This scheme also aims to distribute its assets between both
debt and equity markets in order to enhance the risk-adjusted returns. When markets are
witnessing a bull run, equity allocation is expected to go up to 80%, whereas is bearish
markets, equity allocation can also go down to 65%. The core debt portfolio and the dynamic
asset allocation reduce the volatility of returns for the investors.
Page 53
Top Holdings
The following are some of the top holdings of the ICICI Prudential Balanced Fund:
Sector Equity
Banking & South Indian Bank, ICICI
Financial Services Prudential, Oriental Bank,
Federal Bank, SBI, HDFC Bank,
Axis Bank, ICICI Bank, etc.
Telecommunication Bharti Airtel, Bharti Infratel, etc.
Information Infosys, HCL, Wipro, Tech
Technology Mahindra, L&T Infotech, etc.
Chemicals Tata Chemicals, Castrol, etc.

Metals & Mining Tata Steel, Coal India,etc.
Pharmaceuticals Cipla, Sun Pharma, IPCA Labs,
Alembic Pharma, Divis Labs,
Sanofi India, etc.
Utilities Power Grid Corp, Tata Power,

CESC Gujarat India Power,
NTPC, etc.
Engineering & Larsen Engineers India, IRB
Capital Goods Infrastructure, etc.
Automotive Exide India, Tata Motors, M&M,
Etc.
Consumer Non- Hindustan Unilever Limited, etc.
durables
Food & Beverages Glaxo Smithkline, Britannia, etc.
Oil & Gas Reliance, IOC, BPCL, etc.
Page 54
Tobacco ITC
Cement & NCC, AshokaBuildcon, JK

Construction Lakshmi Cement, etc.
Services Healthcare Global, Narayana
Hruda Container Corp, etc.
Manufacturing Bharat Electricals, etc.
Miscellaneous Thomas Cook, Titan Company,
Jubilant Foods, etc.
Key Features
Fund Type:
ICICI Prudential Balanced Fund is an open-ended income scheme which is available for
repurchase and subscription on a continuous basis.
Minimum Investment Amount:
Minimum first-time investment of ICICI Prudential Balanced Fund fund is Rs.5000, thereafter
investments can be done in multiples of Re.1.
Minimum Additional Amount:
Minimum additional investment amount of ICICI Prudential Balanced Fund is Rs.1000, plus
multiples of Re.1.
Minimum Redemption Amount:
Minimum redemption amount of ICICI Prudential Balanced Fund is Rs.500, additional
investments allowed in multiples of Re.1.
Systematic Investment Plan:
It an investment system using which you can invest a small sum of money every month for a
specific period of time in a mutual fund scheme. For starting SIP in ICICI Prudential
Balanced Fund monthly, a minimum amount of Rs. 1000 + 5 post-dated cheques for a
minimum of Rs.1000 has to be invested in the scheme. For quarterly investment, minimum
Rs.5000 + 3 post dated cheques of Rs.5000 each has to invested in the scheme.
Page 55
Systematic Withdrawal Plan:

It is plan where investor can withdraw his/her money at pre-determined intervals. The money
withdrawn from the scheme can be invested into another mutual fund or can be converted into
cash by the investor. In the case of ICICI Prudential Balanced Fund, the minimum SWP
Amount is Rs.500 and in multiples there-after.
Entry Load:
Mutual Fund companies levy a charge on the investor when they join the investment scheme
which is referred to as entry load. There is NIL entry load in case of ICICI Prudential
Balanced Fund.
Exit Load:
Mutual fund or Asset Management Companies (AMCs) are liable to place a charge on
Investors for switching or exiting from the scheme.
In case of ICICI Prudential Balanced Fund, exit load is levied on the following conditions:
• If the investor redeems or switches out up to 10% of the units of the scheme which are units
purchased or switched in from another scheme within 1 Year from the date of allotment, then
Nil exit load will be levied.
• If the investor redeems or switches more than 10% of the units of the scheme which are
units purchased or switched in from another scheme within 1 year from the date of allotment
then 1% of applicable net asset value (NAV) will be levied.
• If an investor redeems or switches the units purchased to any other investment fund after 1
year from the date of allotment, then NIL exit load will be levied.
Investment Plans
Regular Plan
By opting regular plan, investors can initiate their investment through a third party distributer,
broker or financial advisor. Choosing a regular plan might lead to the levy of brokerage or
management fees, hence the expense ratio is higher for this plan.
Page 56
Direct Plan
By opting for a Direct Plan, investors can initiate their investments directly through the
mutual fund company. No portfolio management fees or brokerage charges are charged in the
process. Hence it provides you higher NAV and lower expense ratio. Both growth and
dividend options are available you wish to invest in ICICI Prudential Balanced Fund through
A direct plan.
Growth Option
By opting for the growth option, the investor has to reinvest the profits of the investment back
into the scheme which in return would result in improving the NAV of the scheme. By
choosing the growth option, if the scheme makes profits, the NAV would increase and if the
scheme faces a loss then NAV would accordingly go down. To earn profits, investors can sell
Or redeem their investments.
Dividend Option
By choosing to invest through the dividend option, investor does not have to re-invest the
profits back into the scheme. The dividends are provided to the investor from time to time as
per the performance of the fund. However, the amount and frequency dividends are not
assured. Dividend options are available with both the dividend pay-out and the dividend
reinvestment facility as per the investor’s choice
Page 57
Conclusion
Profitability of private sector banks in India plays major role in banking sector without profit
the investors cannot invest in this business. A strong financial system promotes investment by
financing productive business opportunities, mobilizing savings, efficiently allocating
resources and makes easy the trade of goods and services. To conclude that there is difference
among the mean value of interest spread, net profit margin, return on long term fund and
return on net worth and there is no difference among the mean value of return on asset of
private banks. So profitability ratios are employed by the management in order to assess how
efficiently they carry on their business operations and also it is suggested for the entire bank
to take effective steps to improve the operating efficiency of the business.
Page 58
Bibliography:
1. Gupta S.P (2014) Statistical Methods, 44PthP Thoroughly Revised Edition 2014, Sultan Chand &
Sons.
2. Kothari C R (2004) Research Methodology, Methods and Techniques, Second Edition, New Age
International.
3. Kothari C R and Gaurav Garg (2008) Research Methodology (Methods and Techniques) Third
Edition, New Age International Publishers.
Webliography:
https://www.csb.co.in
https://www.wikipedia.co.in
https://www.paisabazzar.co.in
https://yourarticlelibrary.com
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Profitability of Private Sector Bank

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Profitability of Private Sector Bank

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PROFITABILITY OF PRIVATE SECTOR BANK 2017

INTRODUCTION OF PRIVATE SECTOR BANK

The development of 'Banking' is evolutionary in nature. There is no single answer to the

EVOLUTION OF PRIVATE SECTOR BANK

CONCEPT OF PRIVATE SECTOR BANK

FUNCTION OF PRIVATE SECTOR BANK

(iv) Helps to access foreign capital markets:

(b) Recurring Deposits:

(c) Cash Certificates:

(a) Savings Deposits:

TYPES OF PRIVATE SECTOR BANKS

Advantages of Private sector banks:-

1) Increased quality of life

9) Effected increased research and development activity and spending

An Analysis of Profitability Position of Private Sector Banks in

STANDARD DEVIATION & COEFFICIENT OF VARIATION

YEAR AXIS ICICI KVB SBI

Projects the result of Chi-Square Test

Profitability Degree Calculated Table value Ho:-Null

Net profit margin % = Net Profit / Revenue

STANDARD DEVIATION & COEFFICIENT OF VARIATION

YEAR AXIS ICICI KVB SBI

2002-2003 10.27 9.86 19.23 8.64

Projects the result of Chi-Square Test

Profitability Degrees Calculate Table hypothesis

2) SERVICES CHARGE & FEES:

Classic Current Account:

(3) Smart Current Account:

 Any Branch Banking (ABB) facility

General Fixed Deposit (Income Scheme):-

 Deposits accepted under court order

Kanakashree Overdraft 11.50% 1 Year

Non-Resident Indian Banking

Edelweiss Tokio Life - Cash Income

Student Medical Insurance:

 Choose from a variety of plans from individual, family to senior citizens.

Pre-requisites for mobile handset:-

A. The handset should be Java-enabled.

1. All your account transactions are updated automatically

CSB Phone Banking:-

1) Account Related Services

Why Opt for ICICI Bank Personal Loan?

Features of ICICI Personal Loan

ICICI Personal Loan Eligibility

Personal Loan Eligibility Calculator:-

Employed/In-business for at least 2 years, at least 1 years with current

Income Rs.4,000 – Rs.20,000 net income per month

Photographs: 2 passport size photographs in case of both salaried and non-salaried

Along with the above mentioned documents, a non-salariedself-employed applicant must

 Proof of residence or office ownership

 Proof of continuity of business

 Office address proof.

Steps to activate I-Loans:

Fees & Charges

Annual Percentage Rate:

Home Loan Interest Rates:-

ICICI Home Loan Interest Rates

Borrower Floating Full-tenor Fixed

Floating Rate Home Loan

Loan amount Rate calculation Interest

Fixed Rate for 5 years or 10 year

Loan amount category Rate Interest

Full Tenor Fixed Rate

Loan amount category Interest