CONTENTS

Chapter-1: BANKING INDUSTRY IN INDIA

Chapter-2: A PROFILE OF ICICI BANK

Chapter-3: METHOD OF STUDY

Chapter-4: THEORITICAL FRAME WORK OF THE STUDY

Chapter-5: ANALYSIS OF NRI SERVICE USERS

Chapter-6: SUMMARY & CONCLUSIONS

QUESTIONNAIRE

BIBLIOGRAPHY

1
INTRODUCTION:

Banks are in the business of accepting deposits for the

purpose of lending. They act as financial intermediaries
between depositors with surplus funds and borrowers who are
in need of funds. Banks occupy a pivotal place in the payment
system for government, business and households. Thus, they
play a vital role in the economic and financial life of country.

The banking sector in the country has undergone a

metamorphic persuade the policies of interest rate
deregulation and financial liberalization in a bid to supplement
the government policies of economic liberalization. The most
important change that has overtaken the nation’s banking
industry, relates to the fact that the competitive forces are
sought to be introduced consciously in the financial service
sector wide to facilitate the entry of foreign banks and new
private sector banks.

After the nationalization of 14 major commercial banks in

the year 1969, no new private banks were licensed by RBI in
the country though there was no legal bank on the entry of
Private sector banks. The Narasimham Committee report of
1991, has envisaged a larger role for private sector banks. In
the recognition of the need to introduce greater completion
with a new to achieving higher productivity and efficiency of

2
 The banking system, RBI issued few guidelines on
January 1993, for the study of private sector banks.
Subsequently new commercial banks have been granted
license to start banking operations. The private sector banks
have been very aggressive in business expansion and is also
reporting higher profit levels taking the advantage of
technology and skilled manpower. In certain areas, their
banks have been out crossed the other group of banks
including foreign banks.

Since the banks are accepting deposits for the purpose of

lending, they occupy a pivotal place in the payment system for
government, business and households. They are therefore,
accountable to the Government, RBI as well as to the public
who are keeping their funds with the banks by reposing trust
in the ability of the banks that they will not put the depositor’s
interest to jeopardy. Here, for banks, the risk of loss is equally
associated with the lending activities as in other business.
The primary role for Government/RBI is to limit the risk
and loss to depositors and thus maintain public confidence as
well as prevent collapse of banking system. Therefore, RBI is
issuing from time to time guidelines to the banks and financial
institutions for proper credit administration. In 1980s RBI
introduced “Health Code” system for credit administration
which mainly focusing on the strength of Bank’s loan assets.

3
SIGNIFICANCE OF THE PROJECT:

In the present scenario of the banking sector, in the post

liberalization period, the competition in banking sector has
reached to new heights. The competition between the banks
leads to the weak credit assessment system which intern
resulted in Non Performing Assets of that bank.

The history of loans has progressed quite a bit since the

days of the middle Ages moneylender. Interest rates are much
more controlled, loan terms have a much higher degree of
fairness to them, and the banks of our era aren't out to simply
get as much money out of borrowers as they can.

The modern banks, finance companies, and online

lenders that provide loans to the public and private sectors
provide a great service to the world economy, and are
regulated by both local and governmental policy so as to make
sure that nothing interferes with that service.

However, if not for some of the oppression and

misdealing that was present throughout the history of lending
then the fairness and opportunity that exists in banking today
might not be possible… even the oppression that resulted from
indentured servitude in the past helped to establish modern

4
banking by showing what factors needed to be eliminated so
as best to benefit both company and customer.

OBJECTIVES OF THE STUDY:

 To study the details of the models being adapted.

 To study the channels of promotion being put to use by
ICICI Bank.
 To study the awareness of people with reference to
products of ICICI Bank.
 To assess the knowledge of the salespeople with respect
to customers.
 To study the customer satisfaction of various products of
ICICI Bank with main concern towards NRI services.

Operation Details:

a. Targeting the branches of banking channel partners

by mapping the entire Hyderabad region

b. Collating the entire database of all account holders

of the bank branches

c. Segmenting them into groups as per nature of

transaction, account balance, age, family details,
demographic factors etc.,

5
 d. Assessing premium potential by assuming database
penetration rates based on individual bank
characteristics and the parameters influencing the
business potential

METHODOLOGY:

Collection of data through various means:

• Primary data
• Secondary data

Primary Data refers to information that is developed or

gathered by the researcher specifically for the research project
at hand.

Secondary Data refers to information that has previously

been gathered by someone other than the researcher and/or
for some other purpose than the research project at hand.

When deciding if the data to be collected is secondary in

nature, ask the following question: Would the data have been
collected as a part of the normal course requirements? If the
answer is no, then the data should be classified as primary.

The benefits of using secondary data, in addition to the ability

to claim an exemption from Human Subjects Review, are that

6
you have neither the time nor the financial investment in their
accumulation. The trade-off, though, is that you do not have
the control over how the instrument is designed, how they are
collected, or how carefully they are manipulated and
documented. Another serious trade-off between primary and

secondary data is the issue of anomalies; when you are using

data you have collected yourself, you have a clear
understanding of how those data should appear (in a
frequency table, for example). You are more quickly able to
spot and correct those anomalies. If you are using someone
else's data, you won't necessarily know all of the subtleties
that were involved in making coding decisions and in inputting
the data.

Primary data is collected through

• Structured questionnaires,
• Personal interviews,
• Telephone conversations.

Secondary data is collected by

• Observing the sales of the products,

• Annual sales report
• Periodicals

7
 • Government publications
• Online database

All the internal sources of the database given the sales records
which are useful for this hypothesis.

LIMITATIONS:

• The study is limited to only twin cities; it is not

applicable to any other geographical part of the
country.

• The report is strictly based on the options of the

respondents.

• The answers given by the respondents may be biased

and therefore may not be accurate.

• All respondents in the sample do not belongs to any

particular group.

8
• The major limitation was regarding the availability of
the customer data from the banks, which is the most
confidential part for any sort of organization

9
HISTORY OF BANKING IN INDIA

10
Without a sound and effective banking system, India
cannot have a healthy economy. The banking system of
India should not only be hassle free but it should be able
to meet new challenges posed by the technology and any
other external and internal factors. .

For the past three decades India's banking system has

several outstanding achievements to its credit. The most
striking is its extensive reach. It is no longer confined to
only metropolitans or cosmopolitans in India. In fact,
Indian banking system has reached even to the remote
corners of the country. This is one of the main reasons of
India's growth process.

Not long ago, an account holder had to wait for hours at

the bank counters for getting a draft or for withdrawing
his own money. Today, he has a choice. Gone are days
when the most efficient bank transferred money from one
branch to other in two days. Now it is simple as instant
messaging or dial a pizza. Money has become the order of
the day.

The first bank in India, though conservative, was

established in 1786. From 1786 till today, the journey of
Indian Banking System can be segregated into three
distinct phases. They are as mentioned below:

11
Early phase from 1786 to 1969 of Indian Banks

Nationalization of Indian Banks and up to 1991 prior to

Indian banking sector Reforms.

Phase I:

The General Bank of India was set up in the year 1786.

Next Bank of Hindustan and Bengal Bank. The East India
Company established Bank of Bengal (1809), Bank of
Bombay (1840) and Bank of Madras (1843) as independent
units and called it Presidency Banks. These three banks
were amalgamated in 1920 and Imperial Bank of India was
established which started as private shareholders banks.

In 1865 Allahabad Bank was established and first time

exclusively by Indians, Punjab National Bank Ltd. was set
up in 1894 with headquarters at Lahore. Between 1906
and 1913, Bank of India, Central Bank of India, Bank of
Baroda, Canada Bank, Indian Bank, and Bank of Mysore
were set up. Reserve Bank of India came in 1935.

During the first phase the growth was very slow and banks
also experienced periodic failures between 1913 and 1948.
There were approximately 1100 banks, mostly small.

12
Phase II:

Government took major steps in this Indian Banking

Sector Reform after independence. In 1955, it
nationalized Imperial Bank of India with extensive
banking facilities on a large scale especially in rural and
semi-urban areas. It formed State Bank of India to act as
the principal agent of RBI and to handle banking
transactions of the Union and State Governments all over
the country. .

Seven banks forming subsidiary of State Bank of India was

nationalized in 1960 on 19th July, 1969, major process of
nationalization was carried out. It was the effort of the
then Prime Minister of India, Mrs. Indira Gandhi. 14 major
commercial banks in the country were nationalized.

The following are the steps taken by the Government of

India to Regulate Banking Institutions in the Country:

1949: Enactment of Banking Regulation Act.

1955: Nationalization of State Bank of India.

1959: Nationalization of SBI subsidiaries.

1961: Insurance cover extended to deposits.

1969: Nationalization of 14 major banks.

13
1971: Creation of credit guarantee corporation.

1975: Creation of regional rural banks.

1980: Nationalization of seven banks with deposits over

200 crore.

14
Phase III:

This phase has introduced many more products and

facilities in the banking sector in its reforms measure. In
1991, under the chairmanship of M Narasimham, a
committee was set up by his name which worked for the
liberalization of banking practices.

The country is flooded with foreign banks and their ATM

stations. Efforts are being put to give a satisfactory
service to customers. Phone banking and net banking is
introduced. The entire system became more convenient
and swift. Time is given more importance than money.
.

The financial system of India has shown a great deal of

resilience. It is sheltered from any crisis triggered by any
external macroeconomics shock as other East Asian
Countries suffered. This is all due to a flexible exchange
rate regime, the foreign reserves are high, the capital
account is not yet fully convertible, and banks and their
customers have limited foreign exchange exposure.

INDIAN ECONOMY 2005-06:

15
 Leading indicators and available information
for 2005-06 suggest that the Indian economy is poised to
build upon the gains in macroeconomic performance
secured in 2004-05. The revival of the South-West
monsoon, robust strengthening of manufacturing activity,
high corporate profitability, buoyant equity markets,
robust merchandise exports and imports, sustained
demand for non-food credit and lead indicators of services
sector activity all point to a brightening of the near term
prospects of the Indian economy.

Assuming a normal monsoon, and on the expectations

that the industry and the services sectors would maintain
their current growth momentum while absorbing the
impact of oil prices, the Reserve Bank in its Annual Policy
Statement for 2005-06 (April 2005) indicated that real
GDP growth for 2005-06 could be placed around 7.0 per
cent for the purpose of monetary policy formulation.

Price Situation:

16
Although headline inflation edged up during April 2005
driven up by prices of fruits and vegetables and some
freely-priced items in the fuel group, it eased in the
subsequent months despite hikes in the prices of
electricity and petrol and diesel. Annual WPI inflation rate
was 3.4 per cent as on August 6, 2005, down from 5.1 per
cent at end-March 2005. More than one-half of the annual
inflation was on account of the fuel group, even as the
pass-through from high international crude oil prices has
remained incomplete. Excluding the fuel group, annual
inflation was 1.8 per cent as on August 6, 2005,
significantly lower than headline inflation.

The Reserve Bank sought to moderate inflationary

expectations by a demonstrable commitment to price
stability through successive increases of 25 basis points
each in the reverse repo rate in October 2004 and April
2005.

Monetary Management:

The commercial sector’s demand for bank credit remained

strong, with year-on-year non-food credit growth of
scheduled commercial banks reaching 30.2 per cent as on
August 5, 2005 on top of 24.4 per cent a year ago.

Real Economic Sector

Agriculture:

17
The experience of 2004-05 brings to the fore, yet again,
the rain dependence of Indian agriculture. In this context,
imparting stability to farm incomes assumes critical
significance. Globalization, rising incomes and
urbanization have brought into focus the need for
increasing diversification and value addition in Indian
agriculture.

Industry:

The congenial policy regime in regard to mergers and

acquisitions including the liberalization of policies in
regard to direct investment abroad has encouraged
consolidation of Indian industry and enabled the reaping
of the benefits of economies of scale. This has imparted a
high degree of competitiveness to Indian industry.

Services:

18
The services sector remains the growth driver of the
economy, with a contribution of more than 57 per cent of
GDP. The services sector is expected to benefit from the
ongoing liberalization of the foreign investment regime
into the sector. Software and the ITES-BPO sectors have
recorded an exponential growth in recent years. The
continued buoyancy in this sector is sustainable in the
medium term in view of enabling policy developments,
encouraging investment climate, improvement in business
expectations, affordable labour force, talented
technological manpower, time zone advantages, and
improved telecommunication facilities and above all, a low
cost destination for outsourcing.

External Sector:

19
Various reforms in the trade policy regime have unlocked
entrepreneurial energies, stepped up productivity gains
and improved competitiveness and access to overseas
markets. India’s merchandise exports have been rising at a
rate of over 20 per cent per annum, in US dollar terms,
during 2002-05. These positive developments in the
external sector provide the environment of pursuing a
further rationalization of tariffs with a view towards
moving to a single, uniform rate on imports, say 10 per
cent, and simplifying all customs procedures strictly in
line with best global practices.

Financial Sector:

With increasing financial sector liberalization and

emergence of financial conglomerates, financial sector
stability has emerged as a key objective of the Reserve
Bank. In this context, the recent emphasis in the
regulatory framework in India on ensuring good
governance through it and proper owners, directors and
senior managers of the banks infuses a qualitative
dimension to the conventional discharge of financial
regulation through prescribing prudential norms and
encouraging market discipline.

20
Monetary Policy:

The recent trends in credit demand are encouraging

although there is recognition of a greater need to ensure
credit quality. It is important that the sharp increase in
credit flow to the rural sector witnessed during the past
two years is maintained while reducing intermediation
cost so that borrowing costs also come down. The thrust
of the current strategy adopted by the Reserve Bank to
increase the flow of rural credit is on enhancing credit
delivery in a regime of reasonable credit prices within the
existing legal and institutional constraints.

Fiscal Policy:

21
Consolidation of Central Government finances so as to
achieve the targets set under the FRBM by 2008-09 is the
goal of fiscal policy, notwithstanding the ‘pause’ that has
been set during 2005-06. Since 2002-03, Central
Government finances have recorded a progressive
reduction in key deficit indicators. Against this backdrop,
with the GFD/GDP ratio at 4.1 per cent in 2004-05
(provisional accounts), the FRBM target of 3.0 per cent by
2008-09 appears to be within striking distance. However,
with the revenue deficit at 2.6 per cent in 2004-05, the
elimination of the revenue deficit by 2008-09 will prove to
be more difficult. Achieving this target requires continued
focused action on containing expenditures, increase in tax
revenues and reduction in tax exemptions.

RESERVE BANK OF INDIA

22
The central bank of the country is the Reserve Bank of
India (RBI). It was established in April 1935 with a share
capital of Rs. 5 crores on the basis of the
recommendations of the Hilton Young Commission. The
share capital was divided into shares of Rs. 100 each fully
paid which was entirely owned by private shareholders in
the beginning. The Government held shares of nominal
value of Rs. 2, 20,000. .

Reserve Bank of India was nationalized in the year 1949.

The general superintendence and direction of the Bank is
entrusted to Central Board of Directors of 20 members,
the Governor and four Deputy Governors, one Government
official from the Ministry of Finance, ten nominated
Directors by the Government to give representation to
important elements in the economic life of the country,
and four nominated Directors by the Central Government
to represent the four local Boards with the headquarters at
Mumbai, Kolkata, Chennai and New Delhi. Local Boards
consist of five members each Central Government
appointed for a term of four years to represent territorial
and economic interests and the interests of co-operative
and indigenous banks. .

The Reserve Bank of India Act, 1934 was commenced on

April 1, 1935. The Act, 1934 (II of 1934) provides the

23
statutory basis of the functioning of the Bank.
.

The Bank was constituted for the need of following:

1. To regulate the issue of banknotes

2. To maintain reserves with a view to securing monetary

stability and

3. To operate the credit and currency system of the

country to its advantage.

24
Functions of Reserve Bank of India:

The Reserve Bank of India Act of 1934 entrust all the

important functions of a central bank the Reserve Bank of
India.

Bank of Issue:

Under Section 22 of the Reserve Bank of India Act, the

Bank has the sole right to issue bank notes of all
denominations. The distribution of one rupee notes and
coins and small coins all over the country is undertaken
by the Reserve Bank as agent of the Government. The
Reserve Bank has a separate Issue Department which is
entrusted with the issue of currency notes. The assets and
liabilities of the Issue Department are kept separate from
those of the Banking Department.

25
Banker to Government:
The second important function of the Reserve Bank of
India is to act as Government banker, agent and adviser.
The Reserve Bank is agent of Central Government and of
all State Governments in India excepting that of Jammu
and Kashmir. The Reserve Bank has the obligation to
transact Government business, via. To keep the cash
balances as deposits free of interest, to receive and to
make payments on behalf of the Government and to carry
out their exchange remittances and other banking
operations. The Reserve Bank of India helps the
Government - both the Union and the States to float new
loans and to manage public debt. It acts as adviser to the
Government on all monetary and banking matters.

Bankers' Bank and Lender of the Last Resort:

the Reserve Bank of India acts as the bankers' bank.

According to the provisions of the Banking Companies Act
of 1949, every scheduled bank was required to maintain
with the Reserve Bank a cash balance equivalent to 5% of
its demand liabilities and 2 per cent of its time liabilities
in India.
The scheduled banks can borrow from the Reserve Bank of
India on the basis of eligible securities or get financial
accommodation in times of need or stringency by

26
rediscounting bills of exchange. Since commercial banks
can always expect the Reserve Bank of India to come to
their help in times of banking crisis the Reserve Bank
becomes not only the banker's bank but also the lender of
the last resort.

Controller of Credit:

The Reserve Bank of India is the controller of credit i.e. it

has the power to influence the volume of credit created by
banks in India. It can do so through changing the Bank
rate or through open market operations. According to the
Banking Regulation Act of 1949, the Reserve Bank of India
can ask any particular bank or the whole banking system
not to lend to particular groups or persons on the basis of
certain types of securities. As supreme banking authority
in the country, the Reserve Bank of India, therefore, has
the following powers:
(a) It holds the cash reserves of all the scheduled banks.

(b) It controls the credit operations of banks through

quantitative and qualitative controls.
(c) It controls the banking system through the system of
licensing, inspection and calling for information.
(d) It acts as the lender of the last resort by providing
rediscount facilities to scheduled banks.

27
Custodian of Foreign Reserves:

The Reserve Bank of India has the responsibility to

maintain the official rate of exchange. According to the
Reserve Bank of India Act of 1934, the Bank was required
to buy and sell at fixed rates any amount of sterling in lots
of not less than Rs. 10,000. The rate of exchange fixed was
Re. 1 = sh. 6d. Since 1935 the Bank was able to maintain
the exchange rate fixed at lsh.6d. Though there were
periods of extreme pressure in favour of or against the
rupee.

28
After India became a member of the International
Monetary Fund in 1946, the Reserve Bank has the
responsibility of maintaining fixed exchange rates with all
other member countries of the I.M.F.Besides maintaining
the rate of exchange of the rupee, the Reserve Bank has to
act as the custodian of India's reserve of international
currencies.

Supervisory functions:

In addition to its traditional central banking functions,

the Reserve bank has certain non-monetary functions of
the nature of supervision of banks and promotion of sound
banking in India. The Reserve Bank Act, 1934, and the
Banking Regulation Act, 1949 have given the RBI wide
powers of supervision and control over commercial and co-
operative banks, relating to licensing and establishments,
branch expansion, liquidity of their assets, management
and methods of working, amalgamation, reconstruction,
and liquidation. The RBI is authorized to carry out
periodical inspections of the banks and to call for returns
and necessary information from them.

29
The nationalization of 14 major Indian scheduled banks in
July 1969 has imposed new responsibilities on the RBI for
directing the growth of banking and credit policies
towards more rapid development of the economy and
realization of certain desired social objectives. .

Promotional functions:

The Bank now performs a variety of developmental and

promotional functions, which, at one time, were regarded
as outside the normal scope of central banking. The
Reserve Bank was asked to promote banking habit, extend
banking facilities to rural and semi-urban areas, and
establish and promote new specialized financing agencies.
It set up the Deposit Insurance Corporation in 1962, the
Unit Trust of India in 1964, the Industrial Development
Bank of India also in 1964, the Agricultural Refinance
Corporation of India in 1963 and the Industrial
Reconstruction Corporation of India in 1972.

These institutions were set up directly or indirectly by the

Reserve Bank to promote saving habit and to mobilize
savings, and to provide industrial finance as well as
agricultural finance. The RBI has set up the Agricultural
Refinance and Development Corporation to provide long-
term finance to farmers.

30
 BANKS IN INDIA

In India the banks are being segregated in different

groups. Each group has their own benefits and limitations
in operating in India. Each has their own dedicated target
market. Few of them only work in rural sector while
others in both rural as well as urban. Many even are only
catering in cities. Some are of Indian origin and some are
foreign players.

All these details and many more are discussed over here.
The banks and its relation with the customers, their mode
of operation, the names of banks under different groups
and other such useful information’s are talked about.

One more section has been taken note of is the upcoming

foreign banks in India. The RBI has shown certain interest
to involve more of foreign banks than the existing one
recently. This step has paved a way for few more foreign
banks to start business in India.

31
Public Sector Banks in India:

Among the Public Sector Banks in India, United Bank of

India is one of the 14 major banks which were
nationalized on July 19, 1969. Its predecessor, in the
Public Sector Banks, the United Bank of India Ltd., was
formed in 1950 with the amalgamation of four banks viz.
Camilla Banking Corporation Ltd. (1914), Bengal Central
Bank Ltd. (1918), Comilla Union Bank Ltd. (1922) and
Hooghly Bank Ltd. (1932).

The following are the list of Public Sector Banks in India

Allahabad Bank

Andhra Bank

Bank of Baroda

Bank of India

Bank of Maharastra

Canara Bank

Central Bank of India

Corporation Bank

Dena Bank

Indian Bank

32
Indian Overseas Bank

Oriental Bank of commerce

Punjab & Sind Bank

Punjab National Bank

Syndicate Bank

UCO Bank

Union Bank of India

Vijaya Bank

List of State Bank of India and its subsidiary, a Public Sector

Banks

State Bank of India

State Bank of Bikaner & Jaipur

State Bank of Hyderabad

State Bank of Indore

State Bank of Mysore

State Bank of Saurastra

State Bank of Travancore

33
Private Sector Banks in India:

Private banking in India was practiced since the begining

of banking system in India. The first private bank in India
to be set up in Private Sector Banks in India was IndusInd
Bank. It is one of the fastest growing Bank Private Sector
Banks in India. IDBI ranks the tenth largest development
bank in the world as Private Banks in India and has
promoted world class institutions in India.
.

List of Private Banks in India

Bank Of Punjab

Bank Of Rajasthan

Centurian Bank

Dhanalakshmi Bank

Development Credit Bank

Federal Bank

HDFC Bank

ICICI Bank

IDBI Bank

IndusInd Bank

34
Jammu&Kashmir Bank

Karnataka Bank

Karur Vysya Bank

Laxmi Vilas Bank

UTI Bank

Co-Operative Banks In India:

The Co operative banks in India started functioning

almost 100 years ago. The Cooperative bank is an
important constituent of the Indian Financial System,
judging by the role assigned to co operative, the
expectations the co operative is supposed to fulfill, their
number, and the number of offices the cooperative bank
operate. Though the co operative movement originated in
the West, but the importance of such banks have assumed
in India is rarely paralleled anywhere else in the world.

35
 The cooperative banks in India play an important role
even today in rural financing. The businesses of
cooperative bank in the urban areas also has increased
phenomenally in recent years due to the sharp increase in
the number of primary co-operative banks. Co operative
Banks in India are registered under the Co-operative
Societies Act. The cooperative bank is also regulated by
the RBI. They are governed by the Banking Regulations
Act 1949 and Banking Laws (Co-operative Societies) Act,
1965. .

Regional Rural Banks in India:

36
Rural banking in India started since the establishment of
banking sector in India. Rural Banks in those days mainly
focused upon the agro sector. Regional rural banks in
India penetrated every corner of the country and extended
a helping hand in the growth process of the country.

SBI has 30 Regional Rural Banks in India known as RRBs.

The rural banks of SBI are spread in 13 states extending
from Kashmir to Karnataka and Himachal Pradesh to
North East. The total number of SBIs Regional Rural Banks
in India branches is 2349 (16%). Till date in rural banking
in India, there are 14,475 rural banks in the country of
which 2126 (91%) are located in remote rural areas.

NABARD

National Bank for Agriculture and Rural Development

(NABARD) is a development bank in the sector of Regional
Rural Banks in India. It provides and regulates credit and
gives service for the promotion and development of rural
sectors mainly agriculture, small scale industries, cottage
and village industries, handicrafts. It also finances rural
crafts and other allied rural economic activities to
promote integrated rural development. It helps in securing
rural prosperity and its connected matters.

Foreign Banks In India:

37
Foreign Banks in India always brought an explanation
about the prompt services to customers. After the set up
of foreign banks in India, the banking sector in India also
become competitive and accurative.New rules announced
by the Reserve Bank of India for the foreign banks in India
in this budget has put up great hopes among foreign banks
which allows them to grow unfettered.

Now foreign banks in India are permitted to set up local

subsidiaries. The policy conveys that foreign banks in
India may not acquire Indian ones (except for weak banks
identified by the RBI, on its terms) and their Indian
subsidiaries will not be able to open branches freely.
.
List of Foreign Banks in India

Abu Dhabi Commercial Bank

ANZ Grindlays Bank

Bank of America

Citi Bank

China Trust Commercial Bank

HSBC

Standard Chartered Bank

ABN-AMRO Bank

38
Deutsche Bank

JPMorgan Chase Bank

39
INDIAN BANKING INDUSTRY

40
Current Scenario:
The industry is currently in a transition phase. On
the one hand, the PSBs, which are the mainstay of the
Indian Banking system, are in the process of shedding
their flab in terms of excessive manpower, excessive non
Performing Assets (Npas) and excessive governmental
equity, while on the other hand the private sector banks
are consolidating themselves through mergers and
acquisitions. .

PSBs, which currently account for more than 78 percent

of total banking industry assets are saddled with NPAs (a
mind-boggling Rs 830 billion in 2000), falling revenues
from traditional sources, lack of modern technology and a
massive workforce while the new private sector banks are
forging ahead and rewriting the traditional banking
business model by way of their sheer innovation and
service.

Private sector Banks have pioneered internet banking,

phone banking, anywhere banking, mobile banking, debit
cards, Automatic Teller Machines (ATMs) and combined
various other services and integrated them into the
mainstream banking arena, while the PSBs are still
grappling with disgruntled employees in the aftermath of
successful VRS schemes.

41
Aggregate Performance of the Banking Industry

Aggregate deposits of scheduled commercial banks

increased at a compounded annual average growth rate
(Cagr) of 17.8 percent during 1969-99, while bank credit
expanded at a Cagr of 16.3 percent per annum. Banks’
investments in government and other approved securities
recorded a Cagr of 18.8 percent per annum during the
same period. .

In FY01 the economic slowdown resulted in a Gross

Domestic Product (GDP) growth of only 6.0 percent as
against the previous year’s 6.4 percent. The WPI Index (a
measure of inflation) increased by 7.1 percent as against
3.3 percent in FY00. Similarly, money supply (M3) grew by
around 16.2 percent as against 14.6 percent a year ago.

Consequently, banks have been forced to explore other

avenues to shore up their capital base. While some are
wooing foreign partners to add to the capital others are
employing the M& A route. Many are also going in for right
issues at prices considerably lower than the market prices
to woo the investors.

Interest Rate Scene: .

42
The RBI has been affecting bank rate and CRR (cash
reserve ratio) cuts at regular intervals to improve liquidity
and reduce rates. The only exception was in July 2000
when the RBI increased the Cash Reserve Ratio (CRR) to
stem the fall in the rupee against the dollar. The steady
fall in the interest rates resulted in squeezed margins for
the banks in general.

Governmental Policy: .

After the first phase and second phase of financial

reforms, in the 1980s commercial banks began to function
in a highly regulated environment, with administered
interest rate structure, quantitative restrictions on credit
flows, high reserve requirements and reservation of a
significant proportion of lend able resources for the
priority and the government sectors. .

43
Financial and Banking Sector Reforms:

The last decade witnessed the maturity of India's financial

markets. Since 1991, every governments of India took
major steps in reforming the financial sector of the
country. The important achievements in the following
fields are discussed under separate heads: .

In the last decade, Private Sector Institutions played an

important role. They grew rapidly in commercial banking
and asset management business. With the openings in the
insurance sector for these institutions, they started
making debt in the market. .

Competition among financial intermediaries gradually

helped the interest rates to decline. The borrowers did not
pay high price while depositors had incentives to save.

44
ICICI BANK:

ICICI Bank (formerly Industrial Credit and Investment

Corporation of India) is India's largest private bank and also
the largest bank in the country. ICICI Bank has total assets of
about Rs.20.05bn (end-Mar 2005), a network of over 550
branches and offices, and about 1900 ATMs. ICICI Bank offers
a wide range of banking products and financial services to
corporate and retail customers through a variety of delivery
channels and through its specialized subsidiaries and affiliates
in the areas of investment banking, life and non-life insurance,
venture capital and asset management.

ICICI Bank's equity shares are listed in India on

stock exchanges at Kolkata and Vadodara, the Stock
Exchange, Mumbai and the National Stock Exchange of India
Limited and its ADRs are listed on the New York Stock
Exchange (NYSE).
Formation:

• The World Bank, the Government of India and

representatives of Indian industry form ICICI Limited as a
development finance institution to provide medium-term
and long-term project financing to Indian businesses in
1955.

45
 • 1994 ICICI establishes ICICI Bank as a subsidiary.
• 1999 ICICI becomes the first Indian company and the
first bank or financial institution from non-Japan Asia to
list on the NYSE.
• 2001 ICICI acquired Bank of Madurai (est. 1943). Bank
of Madurai was a Chettiar bank, and had acquired
Chettinad Mercantile Bank (est. 1933) and Illanji Bank
(established 1904) in the 1960s.
• 2002 The Boards of Directors of ICICI and ICICI Bank
approve the merger of ICICI, ICICI Personal Financial
Services Limited and ICICI Capital Services Limited, with
ICICI Bank. After receiving all necessary regulatory
approvals, ICICI integrates the group's financing and banking
operations, both wholesale and retail, into a single entity.

International Expansion

• 2002 ICICI establishes representative offices in NY and

London.
• 2003 ICICI opens subsidiaries in Canada and the United
Kingdom (UK), and in the UK it establishes alliance with
Lloyds TSB. It also opens an Offshore Banking Unit
(OBU) in Singapore and representative offices in Dubai
and Shanghai.
• 2004 ICICI opens a rep office in Bangladesh to tap the
extensive trade between that country, India and South
Africa.

46
 • 2005 ICICI acquires Investitsionno-Kreditny Bank (IKB),
a Russia bank with about US$4mn in assets, head office
in Balabanovo in the Kaluga region, and with a branch in
Moscow. ICICI Bank offers a high-interest (5.4% gross)
internet savings account to UK customers

About ICICI Bank

ICICI Bank is arguably the most aggressive bank in the

country and can rightfully claim credit for the spread of retail
financing in the country. Formed by the reverse merger of
former ICICI with its banking subsidiary, the bank has been
highly focused on expanding its retail portfolio which it
believes would be the major growth driver in future.

The bank had to overcome several legacy issues after the

merger with ICICI. The erstwhile financial institution had
stockpile of bad loans in its books, a result of liberal financing
to large industrial projects like steel units in the '90s. To its
credit, the bank has successfully cleaned its balance sheet
and net bad loans as a percentage of advances have gone
down significantly.

Besides the well established corporate banking division, ICICI

Bank has the largest market share among all banks in retail
or consumer financing. Its growth rate in home loans exceeds
more established HDFC and its total home loan portfolio
would go past HDFC in a few years at current growth rates.

47
ICICI Bank is the largest issuer of credit cards in the country.
It was the first bank to offer a wide network of ATM's and had
the largest network of ATM's till recently, before SBI caught up
with it.

The bank is expanding rapidly in overseas markets. It has

operations in the UK, Hong Kong and Canada. It acquired a
small bank in Russia recently. It has tie-ups with major banks
in the US and China. The bank is aggressively targeting the
NRI population for expanding its business. It already offers
money transfer facilities to India from most major countries
across the globe.

For the overseas markets, ICICI has a unique strategy. The

bank has successfully reduced operating costs by doing all
processing and back office work in India. It maintains only a
front office customer interface in overseas locations. These
cost savings help the bank to offer higher rates on deposits.

ICICI Bank Financials

• Sales $3.18 bil

• Profits $.36 bil
• Assets $30.06 bil
• Market Value $6.39 bil
• Employees 18000
• Total shares outstanding: 889,292,440

48
HISTORY OF ICICI

1955: The Industrial Credit and Investment Corporation of

India Limited (ICICI) incorporated at the initiative of the World
Bank, the Government of India and representatives of Indian
industry, with the objective of creating a development financial
institution for providing medium-term and long-term project
financing to Indian businesses. Mr.A.Ramaswami Mudaliar
elected as the first Chairman of ICICI Limited

1956: ICICI declared its first Dividend at 3.5%.

1958: Mr.G.L.Mehta was appointed the 2nd Chairman of

ICICI Ltd.

1960: ICICI building at 163, Back Bay Reclamation was

inaugurated.

1961: The first West German loan of DM 5 million from

Kredianstalt was obtained by ICICI.

1967: ICICI made its first debenture issue for Rs.6 crore,
which was oversubscribed.

1969: First two regional offices in Calcutta and Madras

were opened.

49
 1972: Mr. H. T. Parikh appointed as the third
Chairman of ICICI.

1977: ICICI sponsors the formation of Housing

Development Finance Corporation. Managed its first equity
public issue

1978: Mr. James Raj appointed as the fourth Chairman of

ICICI.

1979: Mr.Siddharth Mehta appointed as the fifth Chairman

of ICICI.

1982: Becomes the first ever Indian borrower to raise

European Currency Units.

1984: Mr. S. Nadkarni appointed as the sixth Chairman of

ICICI.

1985: Mr.N.Vaghul appointed as the seventh Chairman

and Managing Director of ICICI.

1986: ICICI first Indian Institution to receive ADB Loans.

First public issue by an Indian entity in the Swiss Capital
Markets.

50
 ICICI along with UTI sets up Credit Rating
Information Services of India Limited, (CRISIL) India's first
professional credit rating agency.
The Corporation made a public issue of Swiss Franc
75 million in Switzerland, the first public issue by any Indian
equity in the Swiss Capital Market.

1987: ICICI signed a loan agreement for Sterling Pound 10

million with Commonwealth Development Corporation (CDC),
the first loan by CDC for financing projects in India.

1988: ICICI promotes TDICI - India's first venture capital

company.

1993: ICICI sets-up ICICI Securities and Finance

Company Limited in joint venture with J. P. Morgan.
ICICI sets up ICICI Asset Management Company.
1994: ICICI sets up ICICI Bank.

1996: ICICI becomes the first company in the Indian

financial sector to raise GDR.
Mr.K.V.Kamath appointed the Managing Director
and CEO of ICICI Ltd
1997: ICICI was the first intermediary to move away from
single prime rate to three-tier prime rates structure and
introduced yield-curve based pricing.

51
 The name "The Industrial Credit and Investment
Corporation of India Limited” was changed to "ICICI Limited".

1998: Introduced the new logo symbolizing a common

corporate identity for the ICICI Group.

1999: ICICI launches retail finance - car loans, house loans

and loans for consumer durables.
ICICI becomes the first Indian Company to list on
the NYSE through an issue of American Depositary Shares.

2000: ICICI Bank becomes the first commercial bank from

India to list its stock on NYSE.
ICICI Bank announces merger with Bank of
Madura.
2001: The Boards of ICICI Ltd and ICICI Bank approved
the merger of ICICI with ICICI Bank.

2002: Moody’s' assign higher than sovereign rating to

ICICI.

52
OVERVIEW:

ICICI Bank is India's second-largest bank. ICICI Bank has a

network of about 573 branches and extension counters and
over 2,000 ATMs. ICICI Bank offers a wide range of banking
products and financial services to corporate and retail
customers through a variety of delivery channels and through
its specialized subsidiaries. ICICI Bank set up its international
banking group in fiscal 2002 to cater to the cross border needs
of clients and leverage on its domestic banking strengths to
offer products internationally. ICICI Bank currently has
subsidiaries in the United Kingdom, Canada and Russia,
branches in Singapore and Bahrain and representative offices
in the United States, China, United Arab Emirates,
Bangladesh and South Africa.

ICICI Bank's equity shares are listed in India on the Bombay

Stock Exchange and the National Stock Exchange of India
Limited and its American Depositary Receipts (ADRs) are listed
on the New York Stock Exchange (NYSE).

At September 20, 2005, ICICI Bank, with free float market

capitalization of about Rs. 400.00 billion (US$ 9.00 billion)
ranked third amongst all the companies listed on the Indian
stock exchanges.

ICICI's shareholding in ICICI Bank was reduced to 46%

through a public offering of shares in India in fiscal 1998, an

53
equity offering in the form of ADRs listed on the NYSE in fiscal
2000, ICICI Bank's acquisition of Bank of Madura Limited in
an all-stock amalgamation in fiscal 2001, and secondary
market sales by ICICI to institutional investors in fiscal 2001
and fiscal 2002. ICICI was formed in 1955 at the initiative of
the World Bank, the Government of India and representatives
of Indian industry.

The principal objective was to create a development financial

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

After consideration of various corporate structuring

alternatives in the context of the emerging competitive
scenario in the Indian banking industry, and the move
towards universal banking, the managements of ICICI and
ICICI Bank formed the view that the merger of ICICI with ICICI
Bank would be the optimal strategic alternative for both
entities, and would create the optimal legal structure for the
ICICI group's universal banking strategy. The merger would

54
enhance value for ICICI shareholders through the merged
entity's access to low-cost deposits, greater opportunities for
earning fee-based income and the ability to participate in the
payments system and provide transaction-banking services.

In October 2001, the Boards of Directors of ICICI and ICICI

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

Investor relations:

ICICI Bank disseminates information on its operations and

initiatives on a regular basis. The ICICI Bank website serves as
a key investor awareness facility, allowing stakeholders to
access information on ICICI Bank at their convenience. ICICI
Bank's dedicated investor relations personnel play a proactive
role in disseminating information to both analysts and
investors and respond to specific queries.

55
Risk management:

Risk is an inherent part of ICICI Bank’s business, and effective

Risk Compliance & Audit Group is critical to achieving
financial soundness and profitability. ICICI Bank has
identified Risk Compliance & Audit Group as one of the core
competencies for the next millennium. The Risk Compliance
& Audit Group (RC & AG) at ICICI Bank benchmarks itself to
international best practices so as to optimise capital utilisation
and maximize shareholder value. With well defined policies
and procedures in place, ICICI Bank identifies, assesses,
monitors and manages the principal risks:

Credit risk (the possibility of loss due to changes in the quality

of counterparties)
Market Risk (the possibility of loss due to changes in market
prices and rates of securities and their levels of volatility)
Operational risk (the potential for loss arising from
breakdowns in policies and controls, human error, contracts,
systems and facilities)

The ability to implement analytical and statistical models is

the true test of a risk methodology. In addition to three
departments within the Risk Compliance & Audit Group
handling the above risks, an Analytics Unit develops
quantitative techniques and models for risk measurement.

56
Credit Risk Management

Credit risk, the most significant risk faced by ICICI Bank, is

managed by the Credit Risk Compliance & Audit
Department (CRC & AD) which evaluates risk at the
transaction level as well as in the portfolio context. The
industry analysts of the department monitor all major sectors
and evolve a sectoral outlook, which is an important input to
the portfolio planning process. The department has done
detailed studies on default patterns of loans and prediction of
defaults in the Indian context. Risk-based pricing of loans has
been introduced.

The functions of this department include:

1. Review of Credit Origination & Monitoring

-Credit rating of companies/structures
-Default risk & loan pricing
-Review of industry sectors
-Review of large exposures in industries/ corporate
groups/ companies
-Ensure Monitoring and follow-up by building
appropriate systems such as CAS
2. Design appropriate credit processes, operating policies &
procedures
3. Portfolio monitoring
-Methodology to measure portfolio risk

57
 -Credit Risk Information System (CRIS)
4. Focused attention to structured financing deals
-Pricing, New Product Approval Policy, Monitoring
5. Monitor adherence to credit policies of RBI

During the year, the department has been instrumental in

reorienting the credit processes, including delegation of powers
and creation of suitable control points in the credit delivery
process with the objective of improving customer response
time and enhancing the effectiveness of the asset creation and
monitoring activities.

Market Risk Compliance & Audit Group

ICICI Bank is exposed to all categories of Market Risk, viz.

• Interest Rate Risk (risk due to changes in interest rates)

• Exchange Rate Risk (risk due to changes in exchange
rates)
• Equity Risk (risk due to change in equity prices
• Liquidity Risk (risk due to deterioration in market
liquidity for tradable instruments)

The Market Risk Compliance & Audit Department evaluates

tests and approves market risk methodologies developed by
the Treasury. It also participates in the new product approval
process on a firm-wide basis and evaluates all new products
from a market risk perspective.

58
Operational Risk Management

ICICI Bank, like all large banks, is exposed to many types of

operational risks. These include potential losses caused by
events such as breakdown in information, communication,
transaction processing and settlement systems/ procedures.

The Audit Department, an integral part of the Risk Compliance

& Audit Group, focuses on the operational risks within the
organization. In recent times, there has been a shift in the
audit focus from transactions to controls. Some examples of
this paradigm shift are:

• Adherence to internal policies, procedures and

documented processes
• Risk Based Audit Plan
• Widening of Treasury operations audit coverage
• Use of Computer Assisted Audit Techniques (CAATs)
• Information Systems Audit

59
Board Committees

Board
Governance &
Audit Committee
Remuneration
Committee
Mr. Sridar Iyengar Mr. N. Vaghul
Mr. Narendra Murkumbi Mr. Anupam Puri
Mr. M. K. Sharma Mr. M. K. Sharma
Mr. P. M. Sinha
Prof. Marti G.
Subrahmanyam
Business Strategy Credit
Committee Committee
Mr. N. Vaghul Mr. N. Vaghul
Mr. Anupam Puri Mr. M .K. Sharma
Mr. M. K. Sharma Mr. P. M. Sinha
Mr. P. M. Sinha Mr. K. V. Kamath
Mr. K. V. Kamath
Fraud Monitoring
Risk Committee
Committee
Mr. M. K. Sharma Mr. N. Vaghul
Mr. Narendra Murkumbi Mr. Sridar Iyengar
Mr. K. V. Kamath Prof. Marti G.
Ms. Kalpana Morparia Subrahmanyam
Ms. Chanda D. Kochhar Mr. V. Prem Watsa

60
 Mr. K. V. Kamath
Share Transfer &
Shareholders'/ Committee of
Investors' Grievance Directors
Committee
Mr. M. K. Sharma Mr. K. V. Kamath
Mr. Narendra Murkumbi Ms. Lalita D.
Ms. Kalpana Morparia Gupte
Ms. Chanda D. Kochhar Ms. Kalpana
Morparia
Ms. Chanda D.
Kochhar
Dr. Nachiket Mor
Asset-Liability
Management Committee
Ms. Lalita D. Gupte
Ms. Kalpana Morparia
Ms. Chanda D. Kochhar
Dr. Nachiket Mor

Board Members

Mr. N. Vaghul, Chairman

Mr. Sridar Iyengar
Mr. R.K.Joshi

61
 Mr. Lakshmi N. Mittal
Mr. Narendra Murkumbi
Mr. Anupam Puri
Mr. Vinod Rai
Mr. M.K. Sharma
Mr. P.M. Sinha
Prof. Marti G. Subrahmanyam
Mr. T.S. Vijayan
Mr. V. Prem Watsa
Mr. K.V. Kamath, Managing Director & CEO
Ms. Lalita D. Gupte, Joint Managing
Director
Ms. Kalpana Morparia, Deputy Managing
Director
Ms. Chanda Kochhar, Executive Director
Dr. Nachiket Mor, Executive Director

Credit Ratings of ICICI Bank Limited

62
 ICICI
Agency India Bank
Limited
Moody's FC - Long Term Baa3 Baa3
FC - Long Term BB+ BB+
S&P
FC - Short Term B B
Rupee - Long Care –
Term AAA
CARE
Rupee - Short
PR1+
Term
Rupee - Long
LAAA
Term
ICRA Term Deposit MAAA
Rupee - Short
A1+
Term
Moody's: Moody's Investor Services
S & P: Standard & Poors
CARE: Credit Analysis & Research Limited,
India
ICRA : ICRA Limited, India
FC : Foreign Currency

PRODUCTS AND SERVICES:

Deposits:

63
ICICI Bank offers wide variety of Deposit Products to suit your
requirements. Coupled with convenience of networked
branches/ ATMs and facility of E-channels like Internet and
Mobile Banking, ICICI Bank brings banking at your doorstep.
Select any of our deposit products and provide your details
online and our representative will contact you for Account
Opening.

Savings Account

ICICI Bank offers you a power packed Savings Account with a

host of convenient features and banking channels to transact
through. So now you can bank at your convenience, without
the stress of waiting in queues.

Senior Citizen Services

We understand that as you reach the age to retire, you do

have certain concerns … whether your hard earned money is
safe and secure … whether your investments give you the kind
of returns that you need. That's why we have an ideal Banking
Service for those who are 60 years and above. The Senior
Citizen Services from ICICI Bank has several advantages that
are tailored to bring more convenience and enjoyment in your
life.

64
Fixed Deposits

Safety, Flexibility, Liquidity and Returns!!!! A combination of

unbeatable features of the Fixed Deposit from ICICI Bank.

Recurring Deposits

When expenses are high, you may not have adequate funds to
make big investments. But simply going ahead without saving
for the future is not an option for you. Through ICICI Bank
Recurring Deposit you can invest small amounts of money
every month that ends up with a large saving on maturity. So
you enjoy twin advantages- affordability and higher earnings.

Loans:

ICICI Bank offers wide variety of Loans Products to suit your

requirements coupled with convenience of networked
branches/ ATMs and facility of E-channels like Internet and
Mobile Banking, ICICI Bank brings banking at your doorstep.
Select any of our loan product and provide your details online
and our representative will contact you for getting loans.

Home Loans

65
The No. 1 Home Loans Provider in the country, ICICI Bank
Home Loans offers some unbeatable benefits to its customers -
Doorstep Service, Simplified Documentation and Guidance
throughout the Process. It's really easy!

Car Loans

The NO 1 financier for car loans in the country. Network of

more than 1500 channel partners in over 780 locations. Tie-
ups with all leading automobile manufacturers to ensure the
best deals. Flexible schemes & quick processing. Hassle-free
application process on the click of a mouse.

Two Wheeler Loans

Avail attractive schemes at competitive interest rates from the

No 1 Financier for Two Wheeler Loans in the country. Finance
facility upto 90% of the On Road Cost of the vehicle, repayable
in convenient repayment options and comfortable tenors from
6 months to 36 months. Ride home on your Dream Two
Wheeler with our hassle free finance.

Farm Equipment Loans

Preferred financier for almost all leading tractor manufacturers

in the country. Flexible repayment options in tandem with the

66
farmer's seasonal liquidity Monthly, Quarterly and Half-yearly
repayment patterns to choose from comfortable repayment
tenures from 1 year to 9 years.

Cards:

ICICI Bank offers a varied range of cards to suit your

requirements. These cards having a wide acceptance,
nationally and internationally, coupled with benefits of
channels like Internet and Mobile, will enhance
your experience.

Credit Cards

ICICI Bank Credit Cards give you the facility of cash,

convenience and a range of benefits, anywhere in the world.
These benefits range from life time free cards, Insurance
benefits, global emergency assistance service, discounts,
utility payments, travel discounts and much more.

Debit Cards

The ICICI Bank Debit Card is a revolutionary form of cash that

allows customers to access their bank account around the
clock, around the world. The ICICI Bank Debit Card can be

67
used for shopping at more than 100,000 merchants in India
and 13 million merchants worldwide.

Travel Card

Presenting ICICI Bank Travel Card. The Hassle Free way to

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

Investment:

At ICICI Bank, we care about all your needs. Along with

Deposit products and Loan offerings, ICICI Bank assists you to
manage your finances by providing various investment options
ranging from ICICI Bank Tax Saving Bonds to Equity
Investments through Initial Public Offers and Investment in
Pure Gold. ICICI Bank facilitates following investment
products:

• ICICI Bank Tax Saving Bonds

• Government of India Bonds
• Investment in Mutual Funds
• Initial Public Offers by Corporates

68
Services:

Demat Services

ICICI Bank Demat Services boasts of an ever-growing

customer base of over 8.5 lacs account holders. In our
continuous endeavour to offer best of the class services to our
customers we offer the following features:

• Online access to your demat account. Check your

holdings, transactions, details of bills and status of
requests and much more.
• Digitally signed transaction statement by e-mail.
• Corporate benefit tracking

Insurance

Health Insurance - "Secure yourself and your family"

Home Insurance- "Secure valuables in your house"

Motor Insurance- Mandatory - "Secure your Vehicle"

Travel Insurance - "Secure yourself during your travel"

69
Trade services:

ICICI Bank offers a wide range of Trade Services

designed to assist you in building on your strengths,
so that your company can seize business opportunities
across the world. ICICI Bank has in place a
Centralized Trade Services Unit, which adheres to six
sigma standards. As a result, ICICI Bank customers
experience fewer delays in receiving payment, require
less effort in locating collection information, gain
increased control over foreign receivables and
experience improved cash flows.

Non-Resident Indians (NRIs): .

Definition of NRI: .
An Indian Citizen who stays abroad for
employment/carrying on business or vocation outside India or
stays abroad under circumstances indicating an intention for
an uncertain duration of stay abroad is a non-resident.
(Persons posted in U.N. Organizations and Officials deputed
abroad by Central/State Governments and Public Sector
undertakings on temporary assignments are also treated as
non-residents). Non –Resident foreign citizens of Indian Origin
are treated on par with non-resident Indian Citizens (NRIs) for
the purpose of certain facilities.

70
Main categories of NRIs: .
The following are the main three categories of NRIs: -
(i) Indian citizens who stay abroad for
employment or for carrying on a business or Vocation or any
other purpose in circumstances indicate an indefinite period of
stay abroad. .
(ii) Indian citizens working abroad on
assignment with foreign government agencies like United
Nations Organization (UNO), including its affiliates,
International Monetary Fund (IMF), World Bank etc.
(iii) Officials of Central and State Government
and Public Sector undertaking deputed abroad on temporary
assignments or posted to their offices, including Indian
diplomat missions, abroad.

SOCIAL INITIATIVES OF ICICI BANK:

CHILD AID FOUNDATION, VIJAYAWADA .

Mission: To reach out to more and more deprived and
underprivileged children and bring hope and happiness in to
their lives.

SANKARA NETHRALAYA, CHENNAI .

Mission: This hospital aims to bring world-class eye care to
the people of India. They have adopted a single standard of
care for all, rich or poor.

71
NATIONAL ASSOCIATION FOR THE BLIND (INDIA), MUMBAI

Mission: Vision for blind

DEEPALAYA, NEW DELHI .

Mission: To create a society based on legitimate rights, equity,
justice, honesty, social sensitivity and a culture of service in
which all are self-reliant.

SEVA MANDIR, UDAIPUR .

Mission: To promote greater equality and freedom in society
and encourage people to come together to address the issues
that affect them.

MOBILITY INDIA, BANGALORE .

Mission: Mobility India's vision is that persons with
disabilities are an integral part of society, and entitled to equal
rights and the best quality of life.

INDIAN INSTITUTE OF CEREBRAL PALSY, KOLKATTA

Mission: To bring about positive changes in the lives of people

with cerebral palsy through a range of policies and service
provisions and give them opportunities to exercise their
constitutional rights and contribute to the community and
country

AHMEDABAD WOMEN'S ACTION GROUP, AHMEDABAD

Mission: To support women in their struggle for survival, to

72
protect them against domestic violence, and to obtain social
justice and to assert equality.

ASSOCIATION FOR STIMULATING KNOW-HOW, NEW DELHI

Mission: To promote greater socio-economic development by

building the capacities of Community Based Organizations
(CBOs), intermediary organizations and corporates and create
an environment of equitable access to all sections of society.

KUTUMBA, BANGALORE .
Mission: To promote the concept of integration of disabled
individuals in society and to support families that provides
care for disabled members. .

NRI SERVICES: .

ICICI bank offers the following NRI services:

BANK ACCOUNTS: Different type of bank accounts that are

offered by ICICI NRI Services.

RUPEE SAVING ACCOUNT:

73
NRE Savings Account: .
ICICI Bank’s power-packed, feature-rich Easy Rupee Account
for NRIs is an ideal choice for the global Indian who earns in
foreign currency. .

NRO Savings Account: .

Enables NRIs to conveniently deposit and manage their Indian
rupee earnings

FIXED DEPOSITS: The kind of fixed deposits available are

NRE Fixed Deposits: .

An attractive investment option for non-resident Indians
offering high returns .

NRO Fixed Deposits: .

An excellent way of earning steady returns on funds generated
in India .

NRE Recurring Deposit: .

Conveniently put aside small sums every month and watch
your savings grow .

FCNR Fixed Deposits: .

A great way to make the most of your foreign currency savings.

74
Rupee plus Plan: .
Make your money work harder and smarter and earn higher
returns for you.

ACCOUNT FOR RETURNING INDIANS:

RFC Savings Account: .

ICICI Bank’s Resident Foreign Currency (RFC) accounts are a
great choice for Non-Residents Indians who have returned to
India and need an account for the funds they hold in foreign
currency.

RFC Fixed Deposits: .

ICICI Bank’s Resident Foreign Currency (RFC) Fixed Deposit
accounts offer Non- Residents Indians who have returned to
India the opportunity to earn good returns on the funds they
hold in foreign currency.

International Deposits

OBU-Seepz (Foreign Currency International Deposits)

ICICI Bank’s Foreign Currency International Deposits provide
a range of benefits for NRIs, like tenures ranging from three
months to six years, different currency options, and fully
repatriable maturity proceeds.

Offshore Banking Deposits

75
ICICI Bank's Foreign Currency International Deposits provides
a range of benefits to Non-resident Indians

Benefits
Deposits ranging from 3 months to 6 years
Attractive multi currency Fixed Deposits in USD, GBP and
EUR
Minimum investment amounts are USD 2000, GBP 1500 and
EUR 2000
Maturity proceeds is completely repatriable

Singapore Deposits .
ICICI Bank’s Singapore Deposits are flexible term deposits at
attractive interest rates. You can opt for a tenure that ranges
from one month to five years and choose among different
currencies.

Bahrain Deposits .
ICICI Bank's Bahrain Deposits not only give you a superior
rate of return, they are also very flexible. You can invest for
different periods, starting as low as a month.

INVESTSMENT:

Mutual Funds

76
ICICI Bank offers you a variety of mutual funds to meet your
investment needs. These include debt funds, equity funds and
hybrid funds. We’ll also help you identify an appropriate mix
of schemes for your portfolio.

Online Share Trading

ICICI Bank’s Web Trade offers a great way for NRIs in the Gulf
(UAE, Saudi Arabia, Kuwait etc) to invest in India’s vibrant
stock markets. You can trade online on the BSE and NSE, and
get market analysis as well.

Structured Deposits
These are offered by ICICI Bank Singapore, and enable you to
invest in instruments linked to different interest classes -- like
interest rates, equities, commodities etc -- without investing in
the underlying assets. .

Private Equity
Private Equity investing consists of buying equity (or deeply
subordinated debt securities) in privately held companies and
real estate assets and working with management and
operating partners to enhance the value of purchased assets
over time.

INTERNATIONAL DEPOSITS:

77
RFC Savings Account .
ICICI Bank’s Resident Foreign Currency (RFC) accounts are a
great choice for Non-Residents Indians who have returned to
India and need an account for the funds they hold in foreign
currency.

ICICI Bank's Foreign Currency International Deposits provides

a range of benefits to Non-resident Indians

Benefits

Deposits ranging from 3 months to 6 years

Attractive multi currency Fixed Deposits in USD, GBP and

EUR

Minimum investment amounts are USD 2000, GBP 1500 and

EUR 2000

Maturity proceeds is completely repatriable

RFC Fixed Deposits .

ICICI Bank’s Resident Foreign Currency (RFC) Fixed Deposit
accounts offer Non-Residents Indians who have returned to
India the opportunity to earn good returns on the funds they
hold in foreign currency.

INSURANCE:

78
Life Insurance

Being away from India doesn't mean you have to compromise

the safety and security of your loved ones. In fact, your
savings from your time overseas can be easily channelised to
meet your family's needs - now and in the future.
Being away from India doesn't mean you have to compromise
the safety and security of your loved ones. In fact, your
savings from your time overseas can be easily channelised to
meet your family's needs - now and in the future.
• Investment and Saving Plans .
• Retirement Plans .
• Child Plans

Investment and Saving Plans

Endowment policies are a good way of putting aside your
savings today for a future goal - whether it's to buy a house in
India or fund your entrepreneurial vision. Our savings-
oriented policies are designed to make your savings grow and
have them available to you at the end of a fixed number of
years or through the term of the plan.

Lifetime II - A complete market-linked insurance plan that

79
adapts itself to your changing protection and investment
needs, throughout a lifetime. .

Invest shield Gold - A unit-linked insurance plan with an

assurance of Capital Guarantee*, which offers you the benefit
of a limited premium payment and coverage term.

Premier Life - A market linked insurance plans that meet your

Investment and Protection needs.

Retirement Plans

Many of us picture ourselves enjoying the fruits of our labour

after retirement - going on a dream vacation, or helping our
child's career take wing. Financing all this will depend on our
personal savings and investments, so it’s important to save for
the future from today. Our retirement plans are designed to
help you systematically save, so that you can enjoy all the
things you have dreamed of when you retire.

Lifetime Pension II - A regular premium linked deferred

pension plan that gives you the freedom to choose the amount
of premium, and invest in market-linked funds, to generate
potentially higher returns.

General Insurance

80
ICICI Bank NRI Services & ICICI Lombard brings insurance
services for the Global Indian. If you are an NRI, and your
family or your parents are in India, your key concerns would
be to secure your assets back home (home /commercial
property / motor) and the health of your dependents in India.

Rishtey - Health Insurance for NRI's Dependants

2 Years comprehensive medical cover for your family

Advanced treatment covering technologically advanced
surgeries
Re-imbursement of return Air Fare .
Nursing care benefit and free health checkups
with 'Cashless' benefit

Overseas Travel Insurance

Premium on a 'Pay Per Day' basis instead of slab rates

Cashless hospitalization benefit available globally
Cover available for a maximum period of 6 months with an
extension option .
Dedicated toll-free help line number across all countries

Home Insurance

81
Covers both structure and contents of your home
Provides protection against natural and man made
calamities
Protection against fire, burglary, gas cylinder, seepage etc.
Avail 25% discount on 5 year and 15% discount on 3 year
policy

Student Overseas Travel Insurance

Pay in Rupees, save in Dollars .

Plan meets foreign universities insurance requirements
No documentation. No health check-up. Instant policy
issuance
Policy is renewable for the second year

LOANS:

Loans against Deposits

We provide liquidity in your investments by offering you a loan
facility against your deposits. Rupee loans are provided
against the security of you’re :

- Rupee deposits - NRO and NRE .

- FCNR deposits .

82
Features of Our Loan against Deposits
Loans are provided to self as well as third party individuals

Loans are available unto 90% of the principal amount of the

deposit

Rupee loans are available at the branch where you maintain

your account

Loan is disbursed either by way of a demand loan or an

overdraft
For demand loan, the entire loan amount is disbursed at one
go by either credit to NRO savings account or issue of a pay
order / demand draft

ICICI Bank India Home Loans

ICICI Bank offers a wide variety of home loan products tailored
to the unique needs of Norris. Whether you want to buy or
build a new home, purchase land or renovate or extend an
existing home, ICICI Bank has a loan product just for you.

83
Product innovation:

NRI Customers Corporate Customers

84
ICICI Bank - India Offshore ICICI Bank - India Offshore
services services

Overview
Offshore banking refers to the
international banking
business involving foreign
currency-denominated assets
and liabilities. Offshore
Banking Units are virtually
foreign branches of Indian
banks but located in India
Overview
Offshore banking refers to the
international banking
business involving foreign
currency-denominated assets
and liabilities. Offshore
Banking Units are virtually
foreign branches of Indian
banks but located in India.

Benefits Benefits
ICICI Bank's Offshore Banking ICICI Bank's Offshore Banking
Unit (OBU) provides a range of Unit (OBU) provides a range of
benefits to Non-Resident benefits to Corporates in
Indians. These include India.
offshore multi-currency Fixed
Deposit accounts at attractive
rates of interest.
Products
Products At ICICI Bank, we believe in
At ICICI Bank, we believe in continuous product
continuous product innovation to fulfill the needs
innovation to fulfill the needs of our customers. Our
of our customers. Our products are designed to cater
products are designed to cater to the diverse requirements of
to the diverse investment our corporate customers. The

85
 THEORITICAL FRAME WORK OF THE STUDY

Introduction:

To better understand the marketing concept, it is worthwhile

to put it in perspective by reviewing other philosophies that
once were predominant. While these alternative concepts
prevailed during different historical time frames, they are not
restricted to those periods and are still practiced by some
firms today.

The Production Concept:

The production concept prevailed from the time of the industrial

revolution until the early 1920's. The production concept was
the idea that a firm should focus on those products that it
could produce most efficiently and that the creation of a
supply of low-cost products would in and of itself creates the
demand for the products. The key questions that a firm would
ask before producing a product were:

• Can we produce the product?

86
 • Can we produce enough of it?

The Sales Concept:

By the early 1930's however, mass production had become

commonplace, competition had increased, and there was little
unfulfilled demand. Around this time, firms began to practice
the sales concept under which companies not only would
produce the products, but also would try to convince
customers to buy them through advertising and personal
selling. Before producing a product, the key questions were:

• Can we sell the product?

• Can we charge enough for it?

The Marketing Concept:

After World War II, the variety of products increased and hard
selling no longer could be relied upon to generate sales. With
increased discretionary income, customers could afford to be
selective and buy only those products that precisely met their
changing needs, and these needs were not immediately
obvious. The key questions became:

• What do customers want?

• Can we develop it while they still want it?
• How can we keep our customers satisfied?

87
In response to these discerning customers, firms began to
adopt the marketing concept, which involves:

• Focusing on customer needs before developing the

product
• Aligning all functions of the company to focus on those
needs
• Realizing a profit by successfully satisfying customer
needs over the long-term

When firms first began to adopt the marketing concept, they

typically set up separate marketing departments whose
objective it was to satisfy customer needs. Often these
departments were sales departments with expanded
responsibilities. While this expanded sales department
structure can be found in some companies today, many firms
have structured themselves into marketing organizations
having a company-wide customer focus. Since the entire
organization exists to satisfy customer needs, nobody can
neglect a customer issue by declaring it a "marketing problem"
- everybody must be concerned with customer satisfaction.

Marketing Definition:
“… Societal process by which individuals and groups obtain
what they need and want through creating, offering and freely
exchanging products and services of value with other”.

88
Product, offering and brand:
Companies address needs by putting forth a value proposition,
a set of benefits offer to customers to satisfy their needs. The
intangible value proposition is made physical by an offering,
which can be a combination of products, services, information,
and experiences. A brand is an offering from a known source.
All companies strive to build strength that is, a strong
favorable brand image.

Value and satisfaction:

The offering will be successful if it delivers value and
satisfaction to the target buyer. Value can be seen as primarily
a combination of quality, service and price (QSP), called the
customer value triad. Value increases with quality, service,
and decreases with price.
We can define value as a ratio between what the customer gets
and what he gives. The customer gets benefits and assumes
costs. The benefits include functional benefits and emotional
benefits.

Relationships and networks:

Relationship marketing has the aim of building mutually
satisfying long-term relations with key party’s customers,
suppliers, and distributors, in order to earn and retain their
business.

89
A market network consists of the company and it s supporting
stakeholders with whom it has built mutually profitable
business relationships.

Marketing Channels:
To reach a target market, the marketer uses three kinds of
marketing channels. Communication Channels, Distribution
Channels, Service Channels.
Supply chain:
The marketing channels connect the marketer to the target
buyers,
The supply chain describes a longer chains stretching from
raw materials to components to final products that are carried
to final buyers.
Competition:
It includes all the actual and potential rival offerings and
substitutes that a buyer might consider.
Competition may be of different types they are
1. Brand competition
2. Industry competition
3. Form competition
4. Generic competition

Marketing program:
The marketer’s task is to build a marketing program or plan to
achieve the company’s desired objectives. The marketing

90
program consists of numerous decisions on the mix of
marketing tools to use. The marketing mix is the set of
marketing the firm uses to pursue it s marketing objectives in
the target market.

Marketing mix consists of 4p’s and those components are as

follows

Marketing Mix

Product

Price

Promotion

Place

Note: Recently 3 more P’s are added with existing 4. So it

becomes 7P’s, are as Product, Price, Promotion, Place, People,
Physical Evidence and Process.

Marketing research:

Research is the search for and retrieval of existing, discovery

or creation of new information or knowledge for a specific
purpose. Research has many categories, from medical

91
research to literary research. Marketing research (also called
consumer research) is a form of business research. It is a form
of applied sociology which concentrates on understanding the
behaviors, whims and preferences, of consumers in a market-
based economy.

Other types of business research:

In addition to marketing research, other forms of business

research include:

• Market research is broader in scope and examines all

aspects of a business environment. It asks questions
about competitors, market structure, government
regulations, economic trends, technological advances,
and numerous other factors that make up the business
environment. (See Environmental scanning.) Sometimes
the term refers more particularly to the financial analysis
of companies, industries, or sectors. In this case,
financial analysts usually carry out the research and
provide the results to investment advisors and potential
investors.

• Product research - This looks at what products can be

produced with available technology, and what new
product innovations near-future technology can develop.
(see New Product Development)

92
 • Advertising research - These attempts to assess the
likely impact of an advertising campaign in advance and
also measure the success of a recent campaign.

Types of marketing research:

Marketing research techniques come in many forms,

including:

• test marketing - a small-scale product launch used to

determine the likely acceptance of the product when it is
introduced into a wider market

• concept testing - to test the acceptance of a concept by

target consumers

• store audit - to measure the sales of a product or

product line at a statistically selected store sample in
order to determine market share, or to determine
whether a retail store provides adequate service

• demand estimation - to determine the approximate level

of demand for the product

• sales forecasting - to determine the expected level of

sales given the level of demand

• customer satisfaction studies - exit interviews or

surveys that determine a customer's level of satisfaction
with the quality of the transaction

93
 • segmentation research - to determine the demographic,
psychographic, and behavioral characteristics of
potential buyers

• consumer decision process research - to determine

what motivates people to buy and what decision-making
process they use

• Advertising and promotion research - how effective are

ads - do potential customers recall the ad, understand
the message, and does the ad influence consumer
purchasing behavior?

All of these forms of marketing research can be classified as

either problem-identification research or as problem-solving
research.

Marketing research methods:

Methodologically, marketing research uses four types of

research designs, namely:

• Qualitative marketing research - generally used for

exploratory purposes - small number of respondents -
not generalizable to the whole population - statistical
significance and confidence not calculated - examples
include focus groups, depth interviews, and projective
techniques

94
 • Quantitative marketing research - generally used to
draw conclusions - tests a specific hypothesis - uses
random sampling techniques so as to infer from the
sample to the population - involves a large number of
respondents - examples include surveys and
questionnaires
• Observational techniques - the researcher observes
social phenomena in their natural setting - observations
can occur cross-sectionally or longitudinally - examples
include product-use analysis and computer cookie traces
• Experimental techniques - the researcher creates a
quasi-artificial environment to try to control spurious
factors, then manipulates at least one of the variables -
examples include purchase laboratories and test markets

Researchers often use more than one research design. They

may start with secondary research to get background
information, and then conduct a focus group (qualitative
research design) to explore the issues.

Consumer Behavior:
Consumer behavior is the study of how people buy, what they
buy, when they buy and why they buy. It is a subcategory of
marketing that blends elements from psychology, sociology,
sociopsychology, anthropology and economics. It studies
characteristics of individual consumers such as demographics,
psychographics, and behavioral variables in an attempt to

95
understand people's wants. It also tries to assess influences
on the consumer from groups such as family, friends,
reference groups, and society in general.

Consumer Behaviour is a process:

In it s early stages of development, the field was often referred
to as buyer behavior, reflecting an emphasis on the interaction
between consumers and producers at the time of purchase.
Most marketers now recognize that consumer behavior is an
on going process, not merely what happens at the moment a
consumer hands over money or credit card and in turn
receives some goods or services.

The study of Consumer Behavior as a separate marketing

discipline began when marketers realized that consumers did
not always act or react as marketing theory suggested they
would. Despite a sometimes “me too” approach to fads and
fashions, many consumers rebelled at using the identical
products that everyone use. Instead, they preferred
differentiated products that they felt reflected their own special
needs, personalities and lifestyles.

Customer Satisfaction and Value:

The buyer is satisfied after purchase depends on the offer’s

performance in relation to the buyer’s expectations. In

96
general, satisfaction is a person’s feelings of pleasure or
disappointment resulting from comparing a product’s
perceived performance in relation to his or her expectations. If
the performance falls short of expectations, the customer is
dissatisfied. If the performance matches the expectations, the
customer is satisfied. If the performance exceeds
expectations, the customer is highly satisfied or delighted.

Although the customer-centered firm seeks to create high

customer satisfaction, that is not its main goal. If the
company increases customer satisfaction by lowering its price
or increasing its services, the result may be lower profits. The
company might be able to increase its profitability by means
other than increased satisfaction. Also, the company has
many stakeholders, including employees, dealers, suppliers,
and stockholders. Spending more to increase customer
satisfaction might divert must operate on the philosophy that
it is trying to deliver a high level of customer satisfaction
subject to delivering acceptable levels of satisfaction to the
other stakeholders, given its total resources.

When customers rate their satisfaction with an element of

the company’s performance-say, delivery- the company needs
to recognize that customers vary in how they define good
delivery, it could mean early delivery, on time delivery, order
completeness, and so on yet if the company had to spell out

97
every element in detail, customer would face a huge survey
questionnaire the company must also realize that two
customer can report being ‘highly satisfied for different
reasons. One may be easily satisfied most of the time and the
other might be hard to please but was pleased on this
occasion.

Demographics:

Demographics are a shorthand term for 'population

characteristics'. Demographics are used in marketing
research, opinion research, political research, the study of
consumer behaviour, as well as in straightforward marketing.

Demographic variables:

Marketers and other social scientists often group consumers

into segments based on demographic variables. The most
frequently used demographic variables are:

• Age
• Sex
• Socioeconomic status (SES)
• Religion
• Nationality
• Occupation
• Education
• Family size

98
 • Marital status

ANALYSIS

The study to analyze the NRI services of ICICI bank was

done through a preliminary data source in terms of a
questionnaire which was campaigned to the customers of
ICICI Bank.
Totally a respondent group of 130 customers coming to
the bank and prospective customers at different locations like
Air booking offices, Stock broking offices cyber towers in HI-
TECH city were selected for the study.
It was very difficult to get the response as the NRI
customers would arrive only randomly. Some times only one
customers per day. This made it very difficult.
Their responses were noted and later analyzed.

99
 I. Your professional status:
Total Sample: 130
Respondents No. of respondents % of respondents

Employee 68 52.3
Entrepreneur 15 11.53
Business man 32 24.61
Others 15 11.53

70

60

50
Employee
40 Entrepreneur
30 Business man
others
20

10

0
+

Most of the people in my sample belong to employee category

stood at nearly 53%.And the next one will be business people
accounts 25%.Here it is clear that the number of

100
entrepreneurs in the country is moving rapidly because people
are aggressive to adopt the prevailing opportunities. And the
remaining people belong to several traditional sectors.

II. If employee in which sector you are working?

Total: 68
Respondents No. of respondents % of respondents
Private sector 39 57.35
Public sector 29 42.65

No. of respondents

Private sector
Public sector

In the employees segment most of people belongs to private

sector i.e., reflects today private sector plays a critical role in
the creation of employment. The public sector people counts at
only 42%.May are the salaries and environment that private
companies provide be the positive points.

101
 III. Can you give me what is your income level?
Total sample: 130
Respondents No. of respondents % of respondents
< 10 lakhs 58 44.61
< 20 lakhs 34 26.15
< 30 lakhs 21 16.15
> 30 lakhs 17 13.07

70

60

50

40
Series1
30

20

10

0
< 10 < 20 < 30 > 30
lakhs lakhs lakhs lakhs

In my study the income of the people plays an important role

in savings and investment of the people. Most of the people
belong to below 10 lakhs. Only 26% people are under the net
of 20 lakhs. And the main thing is only 13% people are having
more than 30 lakhs income.

102
 IV. What percentage of your earnings / income do you save / invest?

Respondents No. of respondents % of respondents

<=10% 11 8.46
10-20 % 30 23.07
20-30% 37 28.46
> 30% 52 40
Total Sample: 130

No. of respondents

52
> 30%
37

20-30%

10-20 %
30

<=10%
11

0 10 20 30 40 50 60

No. of respondents

Ours is a mixed economy, Most of the people in our

country are interested to save a lot but this is changing people
are aggressive to consumption than earlier. In my analysis
nearly 40% people are under 30% savings in their income.

Only 8.5% people were saving only below 10%.And

almost fifty percent of the people are saving between 10-
20%.Large number of people save nearly 30% of their income
and are interested in investing them in funds for future. Hence
pension plans may be important for them.

103
 V. Where do you invest regularly?

Respondents No. of respondents % of respondents

Pf 36 27.69
Mutual funds 17 13.07
Banks 31 23.84
Insurance 23 17.69
others 23 17.69
Total Sample: 130

others 23

Insurance 23

Banks 31 Series1

Mutual funds 17

Pf 36

People are happy with risk free products to invest or save their
surplus money. That is reflecting in my study nearly 28%
people are interested to invest in pension funds. And 24% are
interested to invest in banks. Only 18% are having insurance
coverage. This reflects people are accepting which give better
returns and also risk free.

VI. Do you know the banks which are offering NRI services?

104
 Total Sample: 130
Respondents No. of respondents % of respondents
HDFC 31 23.84
IOB 19 14.61
ICICI 38 29.23
PNB 16 12.30
OTHERS 26 20

Today most of the banks are dealing with NRI services that are
nothing but specialized products for NRI services. Especially
private sector banks are aggressive to tap the NRI customers.
Nearly 29% people are known about ICICI Bank products. And
the next one would be HDFC Bank.

VII. If ICICI rate the service?

Respondents No. of respondents % of respondents

Excellent 28 21.53

105
Good 55 4230
Moderate 42 32.30
Bad 5 3.84

Total Sample: 130

60

50

40 Excellent
30 good
Moderate
20
Bad
10

0
No.of respondents

We know today ICICI Bank is one of the best service providers

in the corporate sector. Nearly 43% of the people are ranking
as the best service and I am happy to say about 22% people
are at excellent thanks for their value. Only 4% are not happy
with the service of the company.

VIII. What are the extra benefits are you getting in ICICI when
compared to others?

Respondents No. of respondents % of respondents

Interest rates 47 36.15
Norms are low 24 18.46

106
Good response 32 24.61
Quick process 27 20.76

Total Sample: 130

50

40 Interest rates

30 Norms are low

20 Good
response
10 Quick process

0
No.of.respondents

We once again conclude that interest rates play an important

role in the investment pattern. This reflects in my study about
37% people are interested in interest rates. And another 19%
are in norms and conditions that are exist. And the rest of the
people are with the quick process and response of the
employees.

IX. How could you know about the NRI services?

Total Sample: 130

Respondents No. of respondents %of respondents
Promotional activities 49 37.69
Internet 10 7.69
Friends 26 20
Executives 45 34.61

107
 50
45
40 Promotional
35 activities
30 Internet
25
Friends
20
15
Executives
10
5
0
No. of respondents

With this study, I feel promotional activities plays an

important role in creating awareness about the products and
services. Drastically nearly 38% people are known from the
promotional activities. And 20% are from their friends and
35% from company executives.

X. How do you rate the interest rates of the NRI services?

Total Sample: 130

Respondents No. of respondents % of respondents
Good 22 16.92
Average 63 48.46
Below average 37 28.46
Bad 8 6.15

108
 70

60

50
Good
40 Average
30 Below average
Bad
20

10

0
No. of respondents

Interest rates may go up in the nearest future according to

global changes. And the interest rates that the bank offering
are very favorable to the investors. Nearly 49% respondents
are satisfied with the bank offerings. And also 17% people rate
happy with the interest rates of the bank. Only 7% are
unhappy with the prevailing rates.

XI. Did you have any problem during the process?

Respondents No of respondents % of respondents

Yes 46 35.38
No 84 64.61

Total Sample: 130

109
 100

80

60
Yes
40 No

20

0
No of respondents

From the above diagram you may conclude that only 36%
people have experienced some problem. It is good the
occurring of the problems is at a lower rate, We may conclude
that many customers have not faced any problem.

XII. Rate the response of employees and marketing executives?

Respondents No. of respondents % of respondents

Excellent 17 13.07
Good 57 43.84
Moderate 43 33.07

110
Bad 13 10

Total Sample: 130

60

50

40 Excellent
30 Good
Moderate
20
Bad
10

0
No. of respondents

Most of the people are satisfied with response from the

employees and also marketing executives. Half of the people
are happy with response of the company representatives. Only
10% are not happy with the response. It is important to have
the required knowledge about the products to provide better
service.

XIII. Whether the marketing executives are able to have the specific
knowledge of NRI services?

Respondents No. of respondents % of respondents

Yes 87 66.92
No 43 33.07

Total Sample: 130

111
 No. of respondents

Yes
No

It is very important to have the knowledge about the

products and services of the bank. With out having the
sound knowledge it is not possible to be a successful sales
programmer. Nearly 67% of respondents feel executives of
the company are having knowledge of NRI services.

XIV. Are the promotional activities are creating awareness about NRI
Services With much information?

Respondents No. of respondents % of respondents

Yes 43 33.07
No 29 22.30
To some extent 58 44.61

112
 Total Sample: 130

60
50
Yes
40
30 No
20
To some
10 extent

0
No. of respondents

Most of the people are satisfied regarding to the promotional

activities with basic knowledge about the products. Because
promotional activities play an important role to create
awareness about the products and also this is the best way
to interact with customers and know the needs and wants
of the people.

XV. Do you recollect any ads regarding bank, what influenced you in
that ad?

Respondents No. of respondents % of respondents

Concept 19 14.61
Punch line 42 32.30
Celebrity 47 36.15
Photography 22 16.92

Total Sample: 130

113
 No. of respondents

Concept
Punch line
Celebrity
Photography

ICICI has reputed and wide accepted strategies in the

advertising. By using some creative concepts it is to attract the
attention of the people. Especially our celebrities are very fame
in the society like Amita Bachhan and Shaw Ruck Khan. Very
popular slogan “HUM HAINA”

XVI. Did you find any drawbacks in services of bank?

Respondents No. of respondents % of respondents

Yes 58 44.61
No 72 55.38

Total Sample: 130

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 Yes
No

Regarding to the draw backs most of the respondents are

not experience any draw backs. In these drawbacks
indicates any delay in the delivery process, employee
response in problem solving and amount transfers between
banks. Mainly due to some technological problems. In total
most of the people in my sample is getting service in the
case of problems

SUMMARY

Banks occupy a pivotal place in the payment system for

government, business and households. Thus, they play a vital
role in the economic and financial life of country. The banking
sector in the country has undergone a rapid change in the
area of interest rate and providing services to the customers

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 Even the oppression that resulted from indentured
servitude in the past helped to establish modern banking by
showing what factors needed to be eliminated so as best to
benefit both company and customer.

As many foreign banks are coming to offer products with

their international experience and expertise so it is necessary

to improve the quality and features of the products to meet the
changing needs and wants of the customers. For this reason
ICICI BANK gave me this opportunity to study the needs and
wants of the customers and to know the satisfaction level of
the existing customers and effectiveness of the promotional
activities of ICICI BANK products and NRI Services also.

Keeping in mind the importance of the study I collected

the data from all available sources i.e., both primary and
secondary data. I met lot of people both existing and
prospective customers to collect the information.

The banking industry is currently in a transition phase. On

the one hand, the public sector undertakings (PSBs), which
are the mainstay of the Indian Banking system, are in the
process of shedding their flab in terms of excessive manpower,
excessive Non Performing Assets (NPAs) and excessive
governmental equity, while on the other hand the private
sector banks are consolidating themselves through mergers
and acquisitions. .

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Private sector Banks have pioneered internet banking, phone
banking, anywhere banking, mobile banking, debit cards,
Automatic Teller Machines (ATMs) and combined various other
services.

ICICI Bank offers a wide range of banking products and

financial services to corporate and retail customers through a
variety of delivery channels and through its specialized
subsidiaries. ICICI Bank set up its international banking
group in fiscal 2002 to cater to the cross border needs of
clients and leverage on its domestic banking strengths to offer
products internationally.

FINDINGS FROM THE SURVEY

It is clear that the number of entrepreneurs in the country is

increasing rapidly because people are aggressive to adopt the
prevailing opportunities.

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In the employees segment most of people belong to private
sector i.e., private sector plays a critical role in the creation of
employment.

Most of the people in our country are interested to save a lot

but this is changing as people have become more aggressive to
wards consumption than earlier. Almost fifty percent of the
people are saving between 10-20%.

People are happy with risk free products to invest or save their
surplus money. That is reflecting in my study nearly 28%
people are interested to invest in pension funds. This reflects
people are accepting products which give better returns and
also risk free.

Today most of the banks are dealing with NRI services that are
nothing but specialized products for NRI’s. Especially private
sector banks are aggressive to tap the NRI customers.

It is clear that interest rates play an important role in the

investment pattern. This reflects in my study as about 37%
people are interested in interest rates.

Interest rates may go up in the nearest future according to

global changes. But the interest rates that the bank offering
are very favorable to the investors.

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Most of the people are satisfied with response from the
employees and also marketing executives. Half of the people
are happy with response of the company representatives. Only
10% are not happy with the response.

The profile of the customers coming to ICICI are professionals

from the private sector(mostly entrepreneurs) with income
level of more than Rs.10 lakhs per annum.

Large number of people save nearly 30% of their income and

are interested in investing them in provident funds and banks.
This reflect people are accepting which give better returns and
also risk free.

Private sector banks are aggressive to tap the NRI customers.

Nearly 29% people are know about ICICI BANK products.
Nearly 63% people are satisfied with products of ICICI BANK.

CONCLUSION

Marketing is the backbone of any organization. It plays a vital

role in any industry. The strength of any firm or industry is
identified mainly by its marketing activities.

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From the survey it was found that most of the people are
aware about the products of ICICI Bank. Many of the
respondents who took part in the survey have evinced interest
in knowing about the utility of NRI services.

The Marketing Executives of the bank should be properly

trained so that they do not create any dissatisfaction in the
minds of the customers. This would also reduce the default
risk of the customers.

The bank has to improve its pre and post services to the
customer which may help in improving the customer loyalty
towards bank and reduce the willful default risk.

The survey resulted in bringing awareness among the account

holders of the branch in which the survey was conducted in
regard to the investment options. The customers were indeed
very eager to know about the products.

Firstly, the benefits provided by the company are very high

compared to the Government organizations. People invest
money to gain some profit and benefits and that is perceived to
be higher in ICICI Bank.

Secondly, the service provided is pleasing and attractive

service as said and is intangible and it cannot be valued, but

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adds a lot of values to the products sold. Hence the ICICI Bank
products are identified, received and treated well as they are
really impressive and create a very good brand image in the
minds of the customers.

Thirdly, the promotional activities employed are very effective

and have proved good results to the organization. The study
gave a clear idea of all the activities of ICICI Bank and the
assessment of its performance.

SUGGESTIONS

1. It was observed that most of the people are aware about

the products of ICICI BANK by the promotional activities,

yet it is better to provide better strategies to reach more
customers.

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 2. Advertising strategies adopted by the bank also attracted

the attention of the people. Shah Rukh Khan's image and

popularity with the Non Resident Indian (NRI) segment
will further reinforce ICICI Bank's global identity, and it
is required continue with such promotion

3. According to my study interest plays an important role in

investment criteria of the people so by providing

specialized services for NRI customers we can improve
the customer base of ICICI BANK.

4. The knowledge of the marketing executives regarding to

the products also satisfied by the most of the customers.
By organizing training programs for executives to improve
their knowledge regarding the products of bank.

QUESTIONAIRE

Name:
Age:
Phone No:
_______________________________________________________________________
_

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1. Your professional status:
(a) Employee (b) entrepreneur (c) business man (d) Others

2. If employee in which sector you are working?

a) private sector b) public sector

3. Can you give me what is your income level?

a) < 5 lakhs b) < 10 lakhs c) < 25 lakhs d) >25 lakhs

4. What percentage of your earnings / income do you save / invest?

a) <10% b) 10-20% c) 20-30% d) >30%

5. Where do you invest regularly?

a) PF b) Mutual fund c) Banks d) Insurance e) Others____________

6. Do you know the banks which are offering NRI services?

a) HDFC b) IOB c) ICICI d) PNB e) OTHERS

7. If ICICI rate the service?

a) Excellent b) good c) moderate d) bad

8. What are the extra benefits are you getting in ICICI when compared to
others?
a) Interest rate b) norms are low c) good response d) quick process

9. How could you know about the NRI services?

a) Promotional activities b) internet c) friends d) Executives

10. How do you rate the interest rates of the NRI services?

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 a) Good b) Average c) Below average d) Bad

11. Did you have any problem during the process?

a) Yes b) No

12. Rate the response of employees and marketing executives?

a) Excellent b) Good c) Moderate d) Bad

13. Whether the marketing executives are able to have the specific knowledge
Of NRI services?
a) Yes b) No

14. Are the promotional activities are creating awareness about NRI
Services With much information?
a) Yes b) no c) to some extent

15. Do you collect any ads regarding bank, what influenced you in that ad?

a) Concept b) punch line c) celebrity d) photography

16. Did you find any drawbacks in services of bank?

a) Yes b) no

17. If yes, Please give some suggestions to serve you better

1.______________________________________________

2.______________________________________________

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3.______________________________________________

4.______________________________________________

BIBLOGRAPHY

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Text Books:

Philip Kotler (2005),” Marketing Management”, Prentice Hall Of

India New Delhi, Eleeventh Edition.

Kotler and Armstrong (2001),” Principles of Marketing” PHI,

New Delhi.

References:

Magazines:
Business World
Business Today
Websites:

www.icicibank.com
www.banknet.com
www.rbi.gov

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