A

SUMMER INTERSHIP PROGRAMME

ON
COMPARATIVE ANALYSIS
&
COMPANY OVERVIEW
AT

Submitted in partial fulfillment of the required of

M.B.A. programme
SUBMITTED BY:

GUIDED BY:-

BHATT JATIN S.

Internal Guide:

ROLL NO. : - 05

Mr. Nilesh Gami

MBA SEMESTER III

External Guide:

ACADEMIC YEAR: 2010-11

Mr. Hitesh Bosmiya

EVA INSTITUTE OF MANAGEMENT - SUPEDI.

Affiliated with
Gujarat Technological University, AHMEDABAD
JATIN S. BHATT

Page 1

COLLEGE CERTIFICATE
This is to certify that Mr. BHATT JATIN SURESHBHAI has satisfactorily
completed the project work at ICICIDIRECT.COM, JETPUR, under the guidance
based on the declaration made by the candidate and my association as guide for
carrying out this work; I recommend this project report for evaluation as a partial
requirement of the MBA Programme of Gujarat Technological University,
Ahmedabad.

DATE:

Assit. Prof. Nilesh Gami

Eva Institute of Management Supedi

(Project Guide)

DATE:

(Dr. Ravi Vikram)

Director EVAIMS - Supedi

JATIN S. BHATT

Page 2

PREFACE
A man without practical knowledge is just like a rough diamond. To shine like a real
diamond one must have practical exposure of what he has learnt. For the management
students, theoretical knowledge is just like lock without key, so practical knowledge is
of utmost importance.

It is quite true that world outside; your cozy home is many times quite different from
what you have perceived. Similarly it is possible that theoretical knowledge acquired
in the classroom may differ from the practical knowledge.

As a curriculum part of M.B.A. course, I have taken my practical training at ICICI

Direct.com at Jetpur.

It is my pleasure to present this project work after I had finished my summer training
at ICICI Direct.com. This training has expanded my horizon of knowledge in practical
as well as theoretical, which is vital for student in management level studies. Only the
basic understanding of the principles of management is not sufficient but their
application is also equally important.

I worked at Sub Branch, Jetpur and have tried my best to collect information on
Marketing, Finance, Operation and Human Resource by visiting each of the
departments.

JATIN S. BHATT

Page 3

ACKNOWLEDGEMENT
To acknowledge is very great way to show your gratitude towards the persons who
have contributed in your success in one or other way.

At the very outset of the training I deem it is my pious duty to express my sincere
thanks to Mr. Hitesh A. Bosmiya & Mr. Hiren A. Bosmiya for his continuous
guidance and supervision during the training period.

My most profound thanks to my revered guider Mr. Nilesh Gami whose generous
and able guidance has always been an unfailing source of inspiration throughout my
training period.

DATE:
PLACE: SUPEDI
Yours faithfully,

BHATT JATIN S.

JATIN S. BHATT

Page 4

DECLARATION
I the Undersigned Mr. BHATT JATIN SURESHBHAI, student of M.B.A Sem. III
hereby declare that the project work presented in this report is my own work and has
been carried out under supervision and guidance of Mr. Nilesh Gami, Assistant
Professor of EVA INSTITUTE OF MANAGEMENT, SUPEDI affiliated with G.T.U.

The objective of the training undertaken is to know all the department of the
organization and to acquire practical knowledge in particular field.

This work has not been previously submitted to any other university for any other
examination.

DATE:

PLACE: SUPEDI

JATIN S. BHATT

Page 5

EXECUTIVE SUMMARY
ICICI Direct.com is the largest equity house in the country providing end-to-end
solutions (including web-based services) through the largest non-banking distribution
channel so as to fulfill all the diverse needs of retail and corporate customers. ICICI
Direct.com has a dominant position in its core segments of its operations - Corporate
Finance including Equity Capital Markets Advisory Services, Institutional Equities,
Retail

and

Financial

Product

Distribution.

With a full-service portfolio, a roster of blue-chip clients and performance second to

none, we have a formidable reputation within the industry. Today ICICI Securities is
among the leading Financial Institutions both on the institutional as well as retail side.

ICICI Direct.com, the step-down wholly owned US subsidiary of the company is a

member of the National Association of Securities Dealers, Inc. (NASD). As a result of
this membership, ICICI Securities Inc. can engage in permitted activities in the U.S.
securities markets. These activities include Dealing in Securities and Corporate
Advisory Services in the United States and providing research and investment advice
to

US

investors.

ICICI Direct.com is also registered with the Financial Services Authority, UK (FSA)
and the Monetary Authority of Singapore (MAS).

JATIN S. BHATT

Page 6

INDEX

Sr.No.
1.

2.

3.

Particulars

Pg.no.

General Information
Basic Information

10

Board of Directors

11

Brief History of the company

12

Competitors

25

Tips for Trading On-line

27

Clarity of Contingency Measures

28

SWOT Analysis

29

Current Status of Industry

31

Subsidiary co.s of ICICI

33

Marketing Department
Introduction

35

Organizational Structure

37

Products

38

Product Life Cycle

56

Promotion Mix

58

Marketing Strategy

62

Human Resource Department

JATIN S. BHATT

Introduction

65

Organizational Structure

66

Human Resource Planning

68

Recruitment Resources

69

Selection Process

71

Training & Development Policy

75

Promotion & Transfer Policy

77

Welfare Policy

78

Page 7

4.

5.

Finance Department
Introduction

85

Capitalization & Capital Structure

89

Management of Fixed Assets

91

Capital Budgeting

92

Working Capital Management

93

Financial Highlights

95

Ratio Analysis

96

Research Methodology

JATIN S. BHATT

Research Objective

101

Research Design

102

Comparative Analysis

105

Limitations of the study

118

Research findings

119

Recommendations & Suggestions

120

Conclusion

122

Bibliography

123

Page 8

GENERAL
INFORMATION

JATIN S. BHATT

Page 9

BASIC INFORMATION

NAME

:-

ICICI Securities

REGISTERED OFFICE

:-

Landmark',
Racecourse Circle,
Alkapuri,
Vadodara-390007
Gujarat, India

TEL

:-

339923/24/25

FAX

:-

339926

WEBSITE

:-

www.ICICIdirect.com

CHIEF EXE. NAME

:-

Ms. Chanda Kochar

BUSINESS GROUP

:-

ICICI GROUP

INCORPORATION DATE

:-

05/08/1997

AUDITORS

:-

S.R. BATLIBOI & Co.

C.A.

BANKERS

JATIN S. BHATT

:-

ICICI BANK

Page 10

BOARD OF DIRECTORS
Ms. Chanda Kochhar, Chair person
Mr. Ketan Patel
Mr. Narendra Murkumbi
Dr. Uday Chitale
Mr. Pravin Vohra
Mr. Sanjay Chatterjee
Mr. Madhabi Puri-Buch, Managing Director & CEO
Mr. A. Murugappan, Executive Director
Mr. Anup Bagchi, Executive Director

JATIN S. BHATT

Page 11

BRIEF HISTORY OF THE COMPANY

HISTORY OF ICICI DIRECT.COM

The ICICI Securities is mainly dealing in the security market. The security market of
India is very widely spreaded and still it is growing at a good rate. The major
institutions which are involved in the security market are performing the role of the
intermediaries for Buyers and Sellers in the market. The service provided by the
mediator is easy transaction between two parties.

Before 1998 the security market was dealing in physical format. There were share
brokers who performed the job of the intermediaries between the two parties. The
main markets were the stock exchanges situated in different parts of the country. The
brokers were purchasing and selling the securities on behalf of the investors. The
major stock exchanges are as follow.

NATIONAL STOCK EXCHANGE {N.S.E.}:

NSE was set up in 1993 at Delhi to encourage stock exchange reforms through the
system modernization and competition. The NSE was following the screen based
trading system. The system through which the NSE is trading is known as the NEAT
[National Exchange for Automated Trading.]. It allows members across the country to
trade simultaneously and with full efficiency.

As on December 1996 there were around 1200 companies traded on NSE. Out of
1200 companies only 535 companies were listed and rest were permitted companies.
The market capitalization as on January was 4.2 trillion. The total turn over of the
NSE as on January was around Rs. 2, 16,000 crores. This was more than nine times
than the turn over of 1995, which was Rs. 27,000 crores.

JATIN S. BHATT

Page 12

BOMBAY STOCK EXCHANGE {B.S.E.}:The BSE is situated at Mumbai more popularly known as the DALAL STREET. As
the Mumbai is the trading capital of the nation, most of the companies prefer to list
their shares in the BSE. The BSE had an extra age over the NSE in number of the
companies listed. As on December 1996, only 1200 companies were traded on the
NSE where as on BSE on the same day 5999 companies were traded. But since
November 1995 trading volumes on NSE is more than the BSE. The BSE is also a
major party who has contributed to the development of security market in India.

OVER THE COUNTER EXCHANGE OF INDIA {O.T.C.E.I.}:

The OTCEI was established in the October 1990. It was jointly promoted by
following institutions.

Unit Trust of India

ICICI
IDBI
SBI capital Market Ltd.
IFCI
GIC

The OTCEI is an exchange where all the activities are computerized. It includes the
trading, billing, payments etc This had opened a new horizon for the security
market in India. As all the transactions were done through computers, it improved the
speed, efficiency and transparency of the transaction.

Overview

ICICI Bank is India's second-largest bank with total assets of about Rs.1,67,659
crores at March 31, 2005 and profit after tax of Rs. 2,005 crores for the year ended
JATIN S. BHATT

Page 13

March 31, 2005 (Rs. 1,637 crores in fiscal 2004). ICICI Bank has a network of about
560 branches and extension counters and over 1,900 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 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 Stock Exchange, Mumbai and the
National Stock Exchange of India Limited and its American Depositary Receipts
(ADRs) are listed on the New York Stock Exchange (NYSE).

As required by the stock exchanges, ICICI Bank has formulated a Code of Business
Conduct and Ethics for its directors and employees.

At April 4, 2005, ICICI Bank, with free float market capitalization* of about Rs.
308.00 billion (US$ 7.00 billion) ranked third amongst all the companies listed on the
Indian stock exchanges.

ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial
institution, and was its wholly-owned subsidiary. ICICI's shareholding in ICICI Bank
was reduced to 46% through a public offering of shares in India in fiscal 1998, an
equity offering in the form of ADRs listed on the NYSE in fiscal 2000, ICICI Bank's
acquisition of Bank of Madura Limited in an all-stock amalgamation in fiscal 2001,
and secondary market sales by ICICI to institutional investors in fiscal 2001 and fiscal
2002. ICICI was formed in 1955 at the initiative of the World Bank, the Government
of India and representatives of Indian industry. The principal objective was to create a
development financial institution for providing medium-term and long-term project
financing to Indian businesses. In the 1990s, ICICI transformed its business from a
development financial institution offering only project finance to a diversified
JATIN S. BHATT

Page 14

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 nonJapan Asia to be listed on the NYSE.

After consideration of various corporate structuring alternatives in the context of the

emerging competitive scenario in the Indian banking industry, and the move towards
universal banking, the managements of ICICI and ICICI Bank formed the view that
the merger of ICICI with ICICI Bank would be the optimal strategic alternative for
both entities, and would create the optimal legal structure for the ICICI group's
universal banking strategy. The merger would enhance value for ICICI shareholders
through the merged entity's access to low-cost deposits, greater opportunities for
earning fee-based income and the ability to participate in the payments system and
provide transaction-banking services. The merger would enhance value for ICICI
Bank shareholders through a large capital base and scale of operations, seamless
access to ICICI's strong corporate relationships built up over five decades, entry into
new business segments, higher market share in various business segments,
particularly fee-based services, and access to the vast talent pool of ICICI and its
subsidiaries. In October 2001, the Boards of Directors of ICICI and ICICI Bank
approved the merger of ICICI and two of its wholly-owned retail finance subsidiaries,
ICICI Personal Financial Services Limited and ICICI Capital

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

Free float holding excludes all promoter holdings, strategic investments and cross
holdings among public sector entities.

ICICI group is a dynamic business group in financial sector of India. It has got growth
at a very good speed and is still growing at better speed. The performance of the bank
is consistently growing at a very good speed. This is the reason that ICICI bank has
JATIN S. BHATT

Page 15

been ranked 2nd in all over performance in India. It is 2nd no bank after SBI group
bank which is leading the bank sector. But still in the private sector banks ICICI is
leading the market leaving behind banks like HDFC, Standard Chartered, Kotak
Mahindra etc...

The history of growth of the ICICI is as follow in sequence of years.

1955:
The Industrial Credit and Investment Corporation of India Limited (ICICI)
incorporated through the collective efforts of the World Bank, the Government of
India and representatives of Indian industry. Its main aim was to provide medium
term and long term loans to the Indian business units. Mr.A.Ramaswami Mudaliar
was been elected as the first Chairman of ICICI Limited

1956:
ICICI declared its first Dividend at 3.5%. Within one year of the operation, bank
started earning profit and declared dividend.

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

1960:
ICICI building at 163, Back Bay Reclamation was inaugurated.

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

1969:
First two regional offices in Calcutta and Madras were opened.

1972:
Second entity in India to set-up merchant banking services.

JATIN S. BHATT

Page 16

1977:
ICICI sponsors the formation of Housing Development Finance Corporation.
Managed its first equity public issue

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

1979:
Mr.Siddharth Mehta appointed as the fifth Chairman of ICICI.

1982:
Becomes the first ever Indian borrower to raise European Currency Units.
ICICI commences leasing business.

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

1985:
Mr.N.Vaghul appointed as the seventh Chairman and Managing Director of ICICI.

1986:
ICICI first Indian Institution to receive ADB Loans. First public issue by an Indian
entity in the Swiss Capital Markets.

ICICI along with UTI sets up Credit Rating Information Services of India Limited,
(CRISIL) India's first professional credit rating agency.

ICICI promotes Shipping Credit and Investment Company of India Limited. (SCICI)

The Corporation made a public issue of Swiss Franc 75 million in Switzerland, the
first public issue by any Indian equity in the Swiss Capital Market.
1987:

JATIN S. BHATT

Page 17

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:
Mr.K.V.Kamath appointed the Managing Director and CEO of ICICI Ltd.

1997:
The name "The Industrial Credit and Investment Corporation of India Limited was
changed to "ICICI Limited".
ICICI announces takeover of ITC Classic Finance.

1998:
Introduced the new logo symbolizing a common corporate identity for the ICICI
Group.
ICICI announces takeover of Anagram Finance.

1999:
ICICI launches retail finance - car loans, house loans and loans for consumer
durables.
ICICI becomes the first Indian Company to list on the NYSE through an issue of
American Depositary Shares.
JATIN S. BHATT

Page 18

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:
ICICI Ltd merged with ICICI Bank Ltd to create Indias second largest bank in terms
of assets.
ICICI assigned higher than sovereign rating by Moodys.
ICICI Bank launched Indias first CDO (Collateralized Debt Obligation) Fund named
Indian Corporate Collateralized Debt Obligation Fund (ICCDO Fund).
"E Lobby", a self-service banking centre inaugurated in Pune. It was the first of its
kind in India.
ICICI Bank launched Private Banking.
1100-seat Call Centre set up in Hyderabad
ICICI Bank Home Shoppe, the first-ever permanent aggregation and display of
housing projects in the county, launched in Pune,
ATM-on-Wheels, Indias first mobile ATM, launched in Mumbai.

2003:
The first Integrated Currency Management Centre launched in Pune.
ICICI Bank announced the setting up of its first ever offshore branch in Singapore.
The first offshore banking unit (OBU) at Seepz Special Economic Zone, Mumbai,
launched.
ICICI Banks representative office inaugurated in Dubai.
Representative office set up in China. : ICICI Banks UK subsidiary launched.
Indias first ever "Visa Mini Credit Card", a 43% smaller credit card in dimensions
launched.
ICICI Bank subsidiary set up in Canada.
Temasek Holdings acquired 5.2% stake in ICICI Bank.
ICICI Bank became the market leader in retail credit in India.
JATIN S. BHATT

Page 19

2004:
Max Money, a home loan product that offers the dual benefit of higher eligibility and
affordability to a customer, introduced.
Mobile banking service in India launched in association with Reliance Infocomm.
Indias first multi-branded credit card with HPCL and Airtel launched.
Kisan Loan Card and innovative, low-cost ATMs in rural India launched.
ICICI Bank and CNBC TV 18 announced Indias first ever awards recognizing the
achievements of SMEs, a pioneering initiative to encourage the contribution of Small
and Medium Enterprises to the growth of Indian economy.
ICICI Bank opened its 500th branch in India.
ICICI Bank introduced partnership model wherein ICICI Bank would forge an
alliance with existing micro finance institutions (MFIs). The MFI would undertake the
promotional role of identifying, training and promoting the micro-finance clients and
ICICI Bank would finance the clients directly on the recommendation of the MFI.
ICICI Bank introduced 8-8 banking wherein all the branches of the Bank would
remain open from 8a.m. to 8 p.m. from Monday to Saturday.
ICICI Bank introduced the concept of floating rate for home loans in India.

2005:
First rural branch and ATM launched in Uttar Pradesh at Delpandarwa, Hardoi.
"Free for Life" credit cards launched wherein annual fees of all ICICI Bank Credit
Cards were waived off.
ICICI Bank and Visa jointly launched mChq a revolutionary credit card on the
mobile phone.
Private Banking Masters 2005, a nationwide Golf tournament for high networth
clients of the private banking division launched. This event is the largest domestic
invitation amateur golf event conducted in India.
First Indian company to make a simultaneous equity offering of $1.8 billion in India,
the United States and Japan.
Acquired IvestitsionnoKreditny Bank of Russia.
ICICI Bank became the largest bank in India in terms of its market capitalization.
JATIN S. BHATT

Page 20

ICICI Bank became the first private entity in India to offer a discount to retail
investors for its follow-up offer.

2006:
ICICI Bank became the first Indian bank to issue hybrid Tier-1 perpetual debt in the
international markets.
ICICI Bank subsidiary set up in Russia.
Introduced a new product - NRI smart save Deposits a unique fixed deposit
scheme for nonresident Indians.
Representative offices opened in Thailand, Indonesia and Malaysia.
ICICI Bank became the largest retail player in the market to introduce a biometric
enabled smart card that allow banking transactions to be conducted on the field. A
low-cost solution, this became an effective delivery option for ICICI Banks micro
finance institution partners.
Financial counseling centre Disha launched. Disha provides free credit counseling,
financial planning and debt management services.
Bhoomi puja conducted for a regional hub in Hyderabad, Andhra Pradesh.

2007:
ICICI Banks USD 2 billion 3-tranche international bond offering was the largest
bond offering by an Indian bank.
Sangli Bank amalgamated with ICICI Bank.
ICICI Bank raised Rs 20,000 crore (approx $5 billion) from both domestic and
international markets through a follow-on public offer.
ICICI Banks GBP 350 million international bond offering marked the inaugural deal
in the sterling market from an Indian issuer and also the largest deal in the sterling
market from Asia.
Launched Indias first ever jewellery card in association with jewelry major Gitanjali
Group.
ICICI Bank became the first bank in India to launch a premium credit card -- The
Visa Signature Credit Card.
Foundation stone laid for a regional hub in Gandhinagar, Gujarat.
JATIN S. BHATT

Page 21

Introduced SME Toolkit, an online resource centre, to help small and medium
enterprises start, finance and grow their business.
ICICI Bank signed a multi-tranche dual currency US$ 1.5 billion syndication loan
agreement in Singapore.
ICICI Bank became the first private bank in India to offer both floating and fixed rate
on car loans, commercial vehicles loans, construction equipment loans and
professional equipment loans.
In a first of its kind, nation wide initiative to attract bright graduate students to pursue
a career in banking, ICICI Bank launched the "Probationary Officer Programme".
Launched Bank@home services for all savings and current a/c customers residing in
India
ICICI Bank Eurasia LLC inaugurated its first branch at St Petersburg, Russia.

2008:
ICICI Bank enters US, launches its first branch in New York
ICICI Bank enters Germany, opens its first branch in Frankfurt
ICICI Bank launched iMobile, a breakthrough innovation in banking where
practically all internet banking transactions can now be simply done on mobile
phones.
ICICI Bank concluded India's largest ever securitization transaction of a pool of retail
loan assets aggregating to Rs. 48.96 billion (equivalent of USD 1.21 billion) in a
multi-tranche issue backed by four different asset categories. It is also the largest deal
in Asia (ex-Japan) in 2008 till date and the second largest deal in Asia (ex-Japan &
Australia) since the beginning of 2007.
ICICI Bank launches ICICIACTIVE - Banking Interactive Service - along with
DISHTV, which will allow viewers to see information about the Bank's products and
services and contact details on their DISHTV screens.
ICICI Bank and British Airways launch co-branded credit card, which is designed to
earn accelerated reward points to the card holders with every British Airways flight or
by spending on everyday purchases
ICICI Bank Board appoints Mr K. V. Kamath as non-executive Chairman and Ms Chanda
Kochhar as Managing Director & CEO effective May 1, 2009, while the existing non-executive
Chairman Mr N Vaghul retires after completing his term on April 30, 2009

JATIN S. BHATT

Page 22

2009:
ICICI bank ties up with BSNL Cell One for bill payments, it will facilitate bill
payment for BSNL Cell One users through www.icicibank.com across all the 27
circles of BSNL.
ICICI Bank Limited acting through its Hong Kong Branch (ICICI Bank) signed an
agreement on Export Credit Line totaling up to US$100 million with the Japan Bank
for International Cooperation (JBIC) which constitutes the international wing of Japan
Finance Corporation.
ICICI Bank Limited acting through its Hong Kong Branch (ICICI Bank) signed a loan
agreement with the Export-Import Bank of China (China Exim) for USD 98 million
under the Two- step Buyer Credit (Export Credit) arrangement. ICICI Bank is the first
Indian Bank to have entered into this arrangement with China Exim
ICICI Bank with Singapore Airlines launched ICICI Bank Singapore Airlines Visa
Platinum Credit Card, the Card has exclusive privileges especially designed for the
members.

ICICI Bank is India's second-largest bank with total assets of about Rs.125, 229 crore
and a network of over 450 branches and offices and about 1790 ATMs. ICICI Bank
offers a wide range of banking products and financial services to corporate and retail
customers through a variety of delivery channels and through its specialized
subsidiaries and affiliates in the areas of investment banking, life and non-life
insurance, venture capital 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 American
Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE).

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

Page 23

development f i n a n c i a l 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 nonJapan Asia to be listed on the NYSE.

After consideration of various corporate structuring alternatives in the context of the

emerging competitive scenario in the Indian banking industry and the move towards
universal banking, the managements of ICICI and ICICI Bank formed the view that
the merger of ICICI with ICICI Bank would be the optimal strategic alternative for
both

entities, and would create the optimal legal structure for the ICICI group's universal
banking strategy. The merger would enhance value for ICICI shareholders through the
merged entity's access to low-cost deposits, greater opportunities for earning feebased income and the ability to participate in the payments system and provide
transaction-banking services. The merger would enhance value for ICICI Bank
shareholders through a large capital base and scale of operations, seamless access to
ICICI's strong corporate relationships built up over five decades, entry into new
business segments, higher market share in various business segments, particularly feebased services, and access to the vast talent pool of ICICI and its subsidiaries. In
October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger
of ICICI and two of its wholly-owned retail finance subsidiaries, ICICI Personal
Financial Services Limited and ICICI Capital Services Limited, with ICICI Bank. The
merger was approved by shareholders of ICICI and ICICI Bank in January 2002, by
the High Court of Gujarat at Ahmedabad in March 2002, and by the High Court of
Judicature at Mumbai and the Reserve Bank of India in April 2002. Consequent to the
merger, the ICICI group's financing and banking operations, both wholesale and
retail, have been integrated in a single entity.

JATIN S. BHATT

Page 24

COMPETITORS
ICICI Securities is providing share trading facilities. The ICICI was the 1st in India to
introduce concept of online share trading. Now in the market there are few players
who are providing the share trading facilities. Some of them are mentioned below
who are providing some competition in the market.

1. HDFC Securities:-

HDFC bank is also one of the growing bank in India. It has also given new definition
to banking services with providing extra services than the traditional banking services.
HDFC was in housing finance initially but in last few years it has widen its scope of
working area. It has entered in almost all the sectors in which ICICI is dealing.

HDFC is providing the demat account to its customers. The HDFC is not providing
the online share trading like ICICI. Here it stays slightly behind the ICICI bank.

2. Kotak Street :-

Kotak Street is also emerging as a good competitor to all the share trading service
providing company. It is also entering in the all the financial services like the ICICI
and HDFC bank. The Kotak Street is relatively new compared to ICICI and HDFC in
the field of share trading. Initially when the Kotak group had not entered in banking
field it had collaboration with HDFC for the saving accounts of the customers who
had or wanted to open the share trading account with the Kotak street.

But now as the Kotak group has its own bank, all the saving accounts are opened in
the Kotak bank. The Kotak group has also entered in the field of insurance with name
OM KOTAK MAHINDRA LIFE INSURANCE. The Kotak group has also entered
in the MUTUAL FUND sector also.

JATIN S. BHATT

Page 25

3. India bulls

India bulls are also one of the companies which is providing the share trading facility.
It is a company which is providing the share trading facility only. It does not provide
any saving account facility to its customer.

4. Motilal Oswal

Motilal Oswal is also one of the competitiors of icici direct.com. This Company is
also providing online trading facilities with which customer can save their time and
they will operate the programm on their computer.

5. Marwadi

This unit has paved their feet in each and every town because of the cheaper rate of its
brokerage. They are not providing unlimited facility for trading.

6. 5paisa.com

5Paisa is the trade mane of India Infoline Securities Private Limited (5paisa), member
of National Stock Exchange and The Stock Exchange, Mumbai. 5paisa is a wholly
owned subsidiary of India Infoline Ltd. Indias leading and most popular finance and
investment portal. 5paisa has emerged as one of leading players in e-broking space in
India.

7. Sharekhan
Sharekhan, Indias leading stock broker is the retail arm of SSKI, and offers you
depository services and trade execution facilities for equities, derivatives and
commodities backed with investment advice tempered by decades of broking
experience.

JATIN S. BHATT

Page 26

Tips for trading online

1. Know thyself: In other words, know the level of risk you are taking and
whether it suits your investment personality and goals.
2. Know what you're buying: Research and understand what kind of security
you are trading and whether it suits your investment needs.
3. Is your computer up to speed? Dated technology at your end can create
delays in executing trades and receiving confirmations.
4. Exercise discipline: If you are buying a volatile stock, use a limit order to
protect you from sharp, upward price movements. By submitting an order
to buy a stock at a specific price, if the price rockets no purchase is made.
This protects you from paying much more than you anticipated.
5. Know your options: If you can't get access to your account online, know
your options for placing a trade. Most online brokers, for example, offer
alternatives for placing trades such as touch-tone phone trades, faxing, or
the old-fashioned way - speaking to a broker by telephone. But be aware
that these options may increase your costs.
6. Confirmations: Investors sometimes mistakenly assume their trade orders
weren't executed and submit another order. Check with the online firm on
what procedures to follow to receive confirmations.
7. Ensure registration of the online broker
8. Make sure that the online broker, through whom online trading is
conducted, is registered with the securities regulator.
9. Before selecting an online brokerage firm, look at the various firms
offering this service, and rate them on the basis of speed of execution and
customer service.
10. Acquaint yourself with the rules of the market
11. When trading in foreign securities, it is important to acquaint oneself with
the regulations applicable to the concerned markets. However currently,
trading in foreign securities is not allowed in India.
12. Clarity on working procedures of the broker
13. The investor must be clear on the following aspects relating to the working
of the broker:
14. Procedure for opening the stock broking accounts
JATIN S. BHATT

Page 27

Clarity of contingency measures

1. Before doing any online trading, one must be clear about the contingency
measures, which will be adopted by the broker in the event of failure
caused due to system breakdown and/or high network traffic.
2. Obtain confirmation from the broker
3. Always obtain a confirmation from the broker for transactions relating to
placement, amendment and cancellation of orders.
4. Confirm source of information and ensure its credibility
5. Always confirm the source of information available online i.e. whether it
is obtained from brokers, a corporate insider or an amateur investor. This
will help in determining the validity of the information available online.
6. Use personal research and judgment for effective trading
7. The investor must not only rely on the status of stocks as posted online,
but also use his own research results, for taking a trading decision. Also,
prior to actual trading, the investor must be fully aware as to why he is
buying or selling specific stocks and what is the risk involved in the
investment decision. Based on his judgment as well as the status of stocks
posted on the net, a prudent investment in the shares must be made.

JATIN S. BHATT

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SWOT ANALYSIS
SWOT analysis is done by all the companies to be aware about the competitor and
new changes in the market. The SWOT analysis leads the company to take strategic
decisions. Company always highlight its strength, try to hide own weakness and in the
same way try to find out strength and weakness of the competitors.
S Strength

Strength of the ICICI Securities is the main feature of the service. As it gives 3 in 1
account to the customer, the ease to trade at your convenient time is the main strength
of the ICICI Direct. Following are some of the strong points of the company.

Convenience of time to trade

Faster transaction
Paperless work
3 in 1 account facility so all work done at one place
The bank has strength of the latest technologies and the most modern
banking channels as net banking and the schemes such as young saver
accounts also.
The young and energetic staff of the bank is also one of the strengths.

W- Weaknesses

Weakness of company is fond out to remove it and then make the product or service
better than current status. Each and every product and service has weakness. It is just
like two side of the coin, if you have strength then you have weakness.

The weakness of the ICICI Direct.com can be said its high charges
compared to other companies.

JATIN S. BHATT

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O Opportunity

Opportunity of the company is with the growth of volume of share trading and if
company decides to reduce the prices to some extent then a new market segment will
come up as a customer of the service.

Jetpur, being the big industrial city of Saurashtra region the Bank has
enough of opportunities to flourish its business here.
ICICI Bank can also grab the opportunity of establishing its market in the
nearby towns and villages by keeping their ATM machines and also by
sending their marketing executives to these remote places on some specific
days.
T Threat

Threat for the company can be considered as following.

Growing competition
Change in government rules which is negative for stock market
Low prices of local brokers
Low awareness of computer in public
The other threat of the new entrants in the market will take up the share
from them.
Now a days many of the financing companies are entering the Jetpurs
market, which is one of the biggest threat for the Banks as they provide the
finance to the customers at very less rates and also at the quickest.

JATIN S. BHATT

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CURRENT STATUS OF THE INDUSTRY

The security market in India has developed a lot in last 5 to 7 years. The development
is due to the increasing awareness among the people; developing communicational
media and most importantly change in the way of transaction i.e. on line trading of
securities. BSE Online Share Trading B.O.L.T. has brought revolution in the
security market.

Introduction of private banks in security market dealing and real estate business have
brought the efficiency and competition in the market. Mutual funds are also one of the
major elements which have influenced the growth of security market. Foreign
Investment Institution [F.I.I.] and Foreign Direct Investment [F.D.I.] has also
contributed in the growth of the security market in India.

Currently in the security market following securities are been traded by the investors,
institutional buyers and foreign investors.

Shares [ Equity shares & preference shares ]

Debentures
Government Bonds
Mutual Funds
Commercial papers

The main feature of todays market is the Dematerialized form of almost all securities.
Previously the securities were available in materialized form i.e. in papers but now it
is available in Dematerialized form. It means securities are not given in paper format
but in ELECTRONIC format it is been directly credited in purchasers demat account.

JATIN S. BHATT

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The main benefits of Dematerialized form are as follow.

Chances of fraud are minimized.

Physical delivery of security is terminated
No chance of theft of security
Quick hand over and less transaction time.

JATIN S. BHATT

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SUBSIDIARY COMPANIES
At March 31, 2008, ICICI Bank had 17 subsidiaries as listed below:

Domestic Subsidiaries

ICICI Securities Limited

ICICI Securities Primary Dealership Limited
ICICI Prudential Life Insurance Company Limited
ICICI Lombard General Insurance Company Limited
ICICI Prudential Asset Management Company Limited
ICICI Prudential Trust Limited
ICICI Venture Funds Management Company Limited
ICICI Home Finance Company Limited
ICICI Investment Management Company Limited
ICICI Trusteeship Services Limited

International Subsidiaries

ICICI Bank UK PLC

ICICI Bank Canada
ICICI Wealth Management Inc.1
ICICI Bank Eurasia Limited Liability Company
ICICI Securities Holdings Inc.2
ICICI Securities Inc.3
ICICI International Limited

JATIN S. BHATT

Page 33

MARKETING
DEPARTMENT

JATIN S. BHATT

Page 34

INTRODUCTION
As we know today in this competitive era marketing plays an important role for any
business to be with the market. As each and every small business should know skill of
marketing as it is one of the most important part of management. So for every
company it is important to have separate marketing department. We can define
marketing as an activity of satisfying human need by process of exchanging goods
and services from producer to consumers. The success of organization depends upon
the marketing activity.

M a r k e t i n g involves activities related to the products. The activity which are done
to satisfy customer need in better way, it includes activities such advertising,
publicity, marketing research, distribution of products and services, sales promotion
efforts etc. in ICICI Securities at main branch Rajkot the marketing of its product is
done by the AUM & UM and schemes provided by the company.

Market Performance of ICICI Bank

In year 2003-04 ICICI Bank d e v e l o p e d in the business of the bank, ICICI Bank has
surpassed HDFC Bank, a major player in the home loan market. It has a market share
of about 27% of the total market of Rs.500, 000 cr. The Muthoot Group, one of the
largest non-banking financing companies, has signed a memorandum of
understanding with ICICI Lombard, a subsidiary of ICICI bank, to enter into the
general insurance distribution market. In September 2004, Mutual Funds increased
their holdings in ICICI Bank. The major investors being Franklin Templeton, UTI
Mutual Fund and HDFC Mutual Fund.

ICICI has launched the Easy Deposit Card which charges an interest of 0.99% per
month, the lowest of the interest rates charged by any bank. The card is issued against
a fixed deposit, which effectively makes it secured loan. This sets it apart from the
regular credit cards, which take the form of unsecured credit. In September 2004,
JATIN S. BHATT

Page 35

ICICI bank initiated talks with private equity investors and foreign banks to sell its
20.44% stake in Federal Bank.

The bank has increased its international presence by inaugurating a representative

branch in Dhaka in August 2004. The Dhaka office would facilitate the trade
relationship between the two countries and enable the bank to increase its
participation in Indias financial transactions with Bangladesh. At that, time bank
launched a powerful banking service package, called Hello Canada Newcomers
Account designed to provide instant access to banking services in Canada to Indians
migrating to that country.

ICICI Bank has launched an interactive mobile banking service in India in association
with Indias largest mobile service provider, Reliance Infocomm.

The growth in net interest income was due to the fall in interest expenses. Another
strong reason for the profits of the bank is its strong advance in the retail business.

JATIN S. BHATT

Page 36

ORGANISATIONAL STRUCTURE
COUNTRY HEAD (MR. KARTIKEYAN)

REGIONAL HEAD (MR. ASHISH RATHOR)

UNIT MANAGER (MR. RONAK THAKKAR)

ASSISTANT UNIT MANAGER (MR. JAYESH VASANI)

TRAINEES

Marketing department consist of different persons with their unique position. Each
and every company has its own marketing department. Marketing organization is
consisting of people, activity, authority, responsibility and relationship for the purpose
of achieving marketing objectives.

ICICI Securities at Rajkot main branch is working at lower level means it is not a big
company and so it does not have its own different marketing department. Here ICICI
Securities Bombay is making the policy related to marketing and the branch is
following that policy.

ICICI Securities is having a simple organizational structure. As the structure is simple

the authority and responsibility is also clearly defined and smooth working of the
organization is possible. This structure is really helpful for the company to introduce
any new product as a clear communicational channel is existing in the company.
JATIN S. BHATT

Page 37

PRODUCTS
ICICI Securities is mainly dealing with share, stock, government bond, mutual fund
and IPO (initial public offer). ICICI Securities is providing mainly three type of
product with different facilities. The core product of ICICI Securities is demat
account. ICICI Securities is providing the core product with extra service of online
share trading to its customer as per their requirement.

There are three type of account in ICICI Securities. They are as follow:
1. Simple demat account
2. Wise investment
3. Direct.com

1. Simple Demat Account:-

The simple demat account is the most simple form of ICICI Securities product. It
gives a demat account to account holder. The customer can purchase and sell the
share, government bond, and debenture. In this account the customer is suppose to
deal in share market with the help of broker.
Following are the regulatory aspects of simple demat account.

Customer can deal only with help of broker.

No online share trading is allowed.
Account opining charge is Rs. 750
If customer does not have saving account in ICICI Bank then he or she
has to deposit Rs.5000 in the bank.
Statement of demat account is given free of cost to the customer per
quarter and if he or she wants monthly statement than Rs. 200 is charge
per annum.
JATIN S. BHATT

Page 38

Charges:
Account opening charge is Rs. 750
Per purchase customer has to pay 0.02% of the amount of purchase.
Minimum Rs. 20
Per sale customer has to pay 0.04% of the amount of sale. Minimum Rs.
20
Maintains charge of demat account is Rs. 350 per annum.
Script maintains charge 0.75 paisa per script per month.
Trade rejection charge is Rs. 50 per transaction rejected.

Limitation:
Online share trading is not available.
Transaction speed is very low compare to online share trading.
Other competitors are providing the same service at lower rate.

2. Wise Investment Account:-

The Wise Investment Account is some what advanced version of simple demat
account. This account gives the customer the freedom of doing online trading in
Government bonds, Initial Public Offers and Mutual funds. Again here the main
trading system is through the broker only.

Charges:
Account opining charge is Rs. 500
Per purchase customer has to pay 0.02% of the amount of purchase.
Minimum Rs. 20

JATIN S. BHATT

Page 39

Per sale customer has to pay 0.04% of the amount of sale. Minimum Rs.
20
Maintains charge of demat account is Rs. 350 per annum.
Script maintains charge 0.75 paisa per script per month.
Trade rejection charge is Rs. 50 per transaction rejected.
A saving account in ICICI BANK is necessary.

Limitation:
Online trading in equity is not allowed.
Transaction time is longer than online trading.
Portfolio is managed by broker, not by our self.
Unnecessary investment of Rs 5000 as balance in saving account.

3. Direct.com:

The most advanced version of share trading is Direct.com. It allows the trading
through internet and gives totally paperless work. It is the most effective way of doing
the share trading. Direct.com allows the customer to work at his own. Means it
removes the broker and a terminal is given in hand of customer.

Charges:
Rs. 750 is taken as lifetime registration charge for using

ICICIDIRECT.COM.
Rs 5000 are to be maintained as quarterly average balance in saving
account.

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The brokerage is taken on TURNOVER of three month. As the turnover

increase, brokerage rate comes down. The rate varies from 0.75 paisa to
0.25 paisa.

Limitation:
High brokerage charge for lower turnover

JATIN S. BHATT

Page 41

PRODUCTS:

ICICIdirect.com

EQUITY

Cash

Margin

DERIVATIVES

FUTURES

OPTIONS

MUTUAL
FUNDS

IPOs

BONDS

Purchases

Redemption
SIP & SWP

BTST

Spot

Switch in /out

Margin
PLUS

Transfer in

JATIN S. BHATT

Page 42

SITE MAP

ICICI
direct.com
1) Home
Page

Quotes
Charts
News

Market
Commodity

2) Trading

Breaking
News

Sector
Watch

Portfolio
Tracker

Net
Worth

3) News

Watch list

Portfolio
Alerts

Technical
Analysis
Pick of the
Weak

ICICIdirect learning
dictionary

JATIN S. BHATT

Page 43

Icicidirect.com

4) Market page

Weakly
Overview
Mega
Movers

Market Desktop

Monthly
Gainers

JATIN S. BHATT

Super
Movers

End of the
day reports

5) Research Page

Industry
News

Multex
Global

Company
Snapshot

My
Research

My quotes
Stock
Screener

Corpor.
Info bank

Page 44

ICICIdirect.com

6) Personal
Finance page

Risk
Analysis

7) Customer
Service page

Bills
& Acc

Asset
Allocator
Customer
Updates

Customer
Tools

Fee
Schedules

Change
Password

Direct
Alert

View
Point

Demo

JATIN S. BHATT

Page 45

1. Trading in shares:

ICICIdirect.com offers you various options while trading in shares.

Cash Trading : This is a delivery based trading system, which is generally done with
the intention of taking delivery of shares or monies.
Margin Trading : You can also do an intra-settlement trading up to 3 to 4 times your
available funds, wherein you take long buy/ short sell positions in stocks with the
intention of squaring off the position within the same day settlement cycle.
Margin PLUS Trading : Through Margin PLUS you can do an intra-settlement
trading upto 25 times your available funds, wherein you take long buy/ short sell
positions in stocks with the intention of squaring off the position within the same day
settlement cycle. Margin PLUS will give a much higher leverage in your account
against your limits.
Spot Trading : This facility can be used only for selling your demat stocks which are
already existing in your demat account. When you are looking at an immediate
liquidity option, 'Cash on Spot' may work the best for you, On selling shares through
"cash on spot", money is credited to your bank a/c the same evening & not on the
exchange payout date. This money can then be withdrawn from any of the ICICIBank
ATMs.
BTST : Buy Today Sell Tomorrow (BTST) is a facility that allows you to sell shares
even on 1st and 2nd day after the buy order date, without you having to wait for the
receipt of shares into your demat account.
CallNTrade: CallNTrade allows you to call on a local number in your city &
trade on the telephone through our Customer Service Executives. This facility is
currently available in over 11 major states across India.
Trading on NSE/BSE: Through ICICIdirect.com, you can trade on NSE as well as
BSE.

JATIN S. BHATT

Page 46

Market Order: You could trade by placing market orders during market hours that
allows you to trade at the best obtainable price in the market at the time of execution
of the order.
Limit Order: Allows you to place a buy/sell order at a price defined by you. The
execution can happen at a price more favorable than the price, which is defined by
you, limit orders can be placed by you during holidays & non-market hours too.

2. TRADE IN DERIVATIVES:
FUTURES
Through ICICIdirect.com, you can now trade in index and stock futures on the NSE.
In futures trading, you take buy/sell positions in index or stock(s) contracts having a
longer contract period of up to 3 months.
Trading in FUTURES is simple! If, during the course of the contract life, the price
moves in your favor (i.e. rises in case you have a buy position or falls in case you
have a sell position), you make a profit.
Presently only selected stocks, which meet the criteria on liquidity and volume, have
been enabled for futures trading.
Calculate Index and Know your Margin are tools to help you in calculating your
margin requirements and the index & stock price movements. The ICICIDIRECT
UNIVERSITY on the HOME page is a comprehensive guide on futures and options
trading.
OPTIONS
An option is a contract, which gives the buyer the right to buy or sell shares at a
specific price, on on the other hand, before a specific date. For this, the buyer has to
pay to the seller some money, which is called premium. There is no obligation on the
buyer to complete the transaction if the price is not favorable to him.

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Page 47

To take the buy/sell position on index/stock options, you have to place certain % of
order value as margin. With options trading, you can leverage on your trading limit by
taking buy/sell positions much more than what you could have taken in cash segment.
The Buyer of a Call Option has the Right but not the Obligation to Purchase the
Underlying Asset at the specified strike price by paying a premium whereas the Seller
of the Call has the obligation of selling the Underlying Asset at the specified Strike
price.
The Buyer of a Put Option has the Right but not the Obligation to Sell the Underlying
Asset at the specified strike price by paying a premium whereas the Seller of the Put
has the obligation of Buying the Underlying Asset at the specified Strike price.
By paying lesser amount of premium, you can create positions under OPTIONS and
take advantage of more trading opportunities.

3. Investing in Mutual funds:

ICICIdirect.com brings you the same convenience while investing in Mutual funds
also - Hassle free and Paperless Investing.
With the inclusion of Standard Chartered MF, you can now invest on-line in 10
mutual Funds through ICICIdirect.com. Prudential ICICI MF, JM MF, Alliance MF,
Franklin Templeton MF, Sundaram MF, Birla Sun Life MF, HDFC MF, Principal MF
and IL & FS MF are the Mutual Funds available for investment. You can invest in
mutual funds without the hassles of filling application forms or any other paperwork.
You need no signatures or proof of identity for investing.
Once you place a request for investing in a particular fund, there are no manual
processes involved. Your bank funds are automatically debited or credited while
simultaneously crediting or debiting your unit holdings.

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Page 48

You also get control over your investments with online order confirmations and
order status tracking. Get to know the performance of your investments through
online updation of MF portfolio with current NAV.
ICICIdirect.com offers you various options while investing in Mutual Funds:
Purchase: You may invest/purchase Prudential ICICI MF, JM MF, Alliance MF,
Franklin Templeton MF, Sundaram MF, Birla Sun Life MF, HDFC MF, Principal
MF, IL & FS MF and Standard Chartered MF without the hassles of filling
application

forms.

Redemption: In addition to giving hassle-free paperless redemption, ICICIdirect.com

offers faster liquidity. You can redeem the mutual fund units through
ICICIdirect.com. The money will be credited to your bank account automatically 3
days

after

the

order

placement

date.

Switch: To suit your changing needs you may wish to shift monies between different
schemes. You can switch your monies online from one scheme to another in the same
fund

family

without

any

hassles.

Systematic Investment plans (SIP): SIP allows you to invest a certain sum of money
over a period of time periodically. Just fill in the investment amount, the period of
investment and the frequency of investing and submit. ICICIdirect.com will do the
rest

for

you

automatically

investing

periodically

for

you.

Systematic withdrawal plan: This allows you to withdraw a certain sum of money
over

period

of

time

periodically.

Transfer-in: You can convert your existing Mutual funds into electronic mode
through a transfer-in request.
3. IPOs and Bonds Online:
You could also invest in Initial Public Offers (IPOs) and Bonds online without going
through the hassles of filling ANY application form/ paperwork.
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Page 49

Get in-depth analyses of new IPOs issues (Initial Public Offerings) which are about to
hit the market and analysis on these. IPO calendar, recent IPO listings,
prospectus/offer documents, and IPO analysis are few of the features, which help you,
keep on top of the IPO markets.
5. ContentFeatures:

There are a host of features on ICICIdirect.com that shall help you make informed
investment decisions.
We provide you with the indices of major world markets, nifty futures and ADR
prices of Indian scripts. Get daily share prices of all scripts, monthly and yearly
high/lows etc through Market Watch.
Get breaking news from CNBC and Reuters. Catch a glimpse of News Headlines
through our scrolling Direct News Headlines.
Get a snapshot of the latest developments in the markets through the day using
Market Commentary. You can get weekly snapshots also. Use Pick of the week,
which focuses on fundamental stocks with sound prospects.
Catch interviews, reactions and comments from industry leaders with CEO Call.
Track the movement of leading scrips within a sector across 12 sectors using
Market@Desktop.
Equip yourself with our barometers. Market Barometer gives you in-depth
information of the weightages of shares on Nifty and Sensex. Get a glimpse of the
performance of various industry sectors through Industry Barometer.
Direct Technical Charts offer interactive charting with advanced indicators. Get a
bird's eye view of over 5000 companies at a single click using Company Snapshot.
Glance through analyst recommendations using Multex Global Estimates.
In case, you are not too comfortable with share trading, try our Learning Centre,
which is a tutorial on investments and My Research, that helps you to research a
stock better.
JATIN S. BHATT

Page 50

6. Personal Finance:
Use our Personal Finance section and get hold of tools that can help you plan your
investments, retirement, tax etc. Analyse your risk profile through the Risk Analyzer
and get a suitable investment portfolio plan using Asset Allocator.
7. Customer Service Features:

With 'ICICIdirect Customer Tools & Updates' you can trouble shoot all your
problems online.
Address your trading queries on-line through "Easy Mail". You can view and change
your

profile

or

password

on-line

through

General

Profile

option.

Get details of ICICI Centers, our sales and service offices, across India through
branch

locator.

View your Account Statement and Bill Summary of your transactions online using
bills

&accounts.

View your Digital Contract Notes instantly. View various charges through the Fee
Schedule option.
Give your feedback or viewpoint through the Viewpoint online.
Enroll yourself for various ICICIdirect Workshops through Register for Customer
Sessions.
Introduction of new products and services

ICICI SECURITIES introduced some innovative products by using their strong

technological capabilities through different schemes for customers. These schemes are

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Page 51

so unique and having different type of advantages for different customers. S 1 to S 9

schemes.

Another new thing about this company is that, they are having variety of unique
products for each type of investor. Either the customer is a day trader or an investor,
company is having products like MARGIN, MARGIN PLUS, BUY TODAY SELL
TOMMORROW (BTST), CALL AND TRADE ,CASH ON SPOT, CASH
TRADING, IPOS AND MF, SYSTEMATIC INVESTMENT PLAN, PORTFOLIO
TARCKER etc.

Dematerialization of Securities (Demat):-

Dematerialization is the process of converting the securities held in physical form

(certificates) to an equivalent number of securities in electronic form and crediting
the same to the investors dematting account. Dematerialized securities do not have
any certificate numbers or distinctive numbers and are delta only in quantity i.e. the
securities arefungible.

Dematerialization of your holdings is not mandatory. You can hold your securities
either in demat form or in physical form. You can also keep part of your holdings (in
the same scrip) in demat form & part in physical form. However, a select list of
securities announced by SEBI can be delivered only in demat form in Stock exchange
connected to NSDL.

SELL DEMATERIALISED SECURITIES:-

You can sell your dematerialized securities in any of the stock exchanges
linked to NSDL through a broker of your choice.
You give a delivery instruction to your DP for debit of your depository
account and credit of your brokers clearing member account.
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Page 52

On the pay-in day, your broker gives instruction to his DP for delivery to
clearing corporation/clearing house of the relevant stock exchange
The broker receives payment from the clearing corporation/clearing house.
You receive payment from the broker for the sale in the same manner you
would receive payment for a sale in the physical mode.
BUY DEMATIRIALIZED SECURITIES:-

You purchase securities in any of stock exchanges connected to NSDL

through a broker of your choice and make payment to your broker. Make
sure you tell your broker you want only demat shares.
Broker received credit in his clearing account with his DP on the day of
payout. He can immediately transfer these securities to your depository
account, provided your account is already active.
Broker gives instructions to his DP to debit his clearing member account
and credit your depository account.

Rematerialization:-

Rematerialization is the process of converting the securities held in electronic form

in a demat account to an equivalent number of securities in physical form
(certificates) after debiting the same from the demat account.

The Internet revolution has been changing the fundamentals of our society. It shapes
the way we communicate and the way we do business. It brings us closer and closer
to vital sources of information. It provides us with means to directly interact with
service-oriented computer systems tailored to our specific needs; therefore, we can
serve ourselves better by making our own decisions.

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You may know that, historically, the share bazaar has usually given wise investors
higher returns on their money over the long term than any other form of investment.
And in these times of much lower interest rates on fixed income investments, shares
are probably looking more and more attractive as a place for you to put your money.

If you have done your homework, you know that the share bazaar is volatile. You
know that while many people have made fortunes overnight, many have also lost
them

just

as

rapidly.

It is hugely important - critical even - that you go into the share market with your eyes
open. That you study it, know what makes it tick, understand what experts are talking
about when they

discuss

shares.

Unfortunately, many of the best experts talk a language all their own. It is very
difficult for someone who has not spent time learning that language to figure out what
they

are

saying.

Even more unfortunate is that by the time you learn the basics, you could wind up
broke.

Someone who knows what the dangers are knows how to get to the good stuff. Who
teaches you what the tools are and how to use them. Who can show you how to get
the information you need, and how to make it work for you. Who can take care of you
until you are ready to take care of yourself?

You

need

an

expert

guide,

educator,

personal

trainer

and

facilitator.

Who can gives you the full benefit of its experience technology-based tools and
research, all modified and customized for the novice.

Who can gives you powerful, easy-to-use tools, on the web, or via ordinary phone
lines, that will help you as a stock market investor.
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It teaches you with systematic demos at crucial stages - at the beginning, and when
you are ready to do your first trade -. Moreover, it gives you the services of a
dedicated customer support team.

It continues to support you with research by experts, delivered to you in simple, easy
to understand fashion.

ICICI direct.com makes the most of state-of the-art technology to deliver power,
speed and reliability. Through an easy-to-use interface, users are provided with the
same tools and advantages that the professionals enjoy.

With access to both the NSE & BSE, you are in the driver's seat when routing your
order to the best price on either of the exchanges. Icici direct.com has sophisticated
yet easy to use point and click order entry interface allows you to react more quickly
to the markets and make better decisions.

Keep an eye on the stocks you care about most with streaming, real-time quotes and
customizable market data. Color-coded price changes help you to spot trends and
react to them quickly.

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PRODUCT LIFE-CYCLE
The concept of Product Life Cycle is very important for any company to decide about
future of its product. As a human takes birth, grows up, becomes mature and at the
end die, products also have the Product Life Cycle. The company considers the stage
of Product Life Cycle and then makes the promotion policies.

1.

Introduction

2.

3.

Growth

4.

Maturity

Decline

1. Introduction Stage:This is the stage when the product is just entering in the market. In this stage the
company needs to make the maximum promotional efforts and advertisement to
establish the product in the market.

2. Growth stage:This is the stage where the market is aware about the product and now the sales and
profit are increasing. This stage allows the company to have a grip on the market.

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3. Maturity Stage:The most important and longest part of the Product Life Cycle is the maturity stage.
As in this stage the company is getting the most number of the customer and the
market share of the company is stable. Now company starts innovating its product.

4. Decline stage:This is the stage where the product has lost its attractiveness and now people do not
prefer the product. Now the profit is down and sales are also declining.

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PROMOTION-MIX
As we know in todays world having good quality product is not enough. As per the
Marketing concept Even though your product is the best, people will not buy
enough of it, if enough efforts are not made to sell the product to the customer So the
marketing has become an important part of the corporate world.

The marketing is mainly concerned with the manner in which a company is able to
sale its product or services. The ICICI Securities is engaged with the marketing of
demat accounts and its major policies are made by the head office at Mumbai. At
Rajkot branch, local stalls are done at various places to make promotion at local level.

Advertisement

Sales Promotion

Promotion Mix

Publicity

Personnel Selling

Advertisement:Advertisement is one of the important parts of promotion policy of the company. As

we know, the advertisement has become very necessary for any company to survive in
this thought cut competition. ICICI Securities is not having separate television
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advertisement but as a part of ICICI, indirect advertisement is done. ICICI Securities

is targeting computer user as their target market, so its main advertisement is done
through internet.

Media:Media means The Way, through which the company is spreading its message. ICICI
Securities is using the Internet as its media which is one of the fastest media in
todays world.
The ICICI Group is making advertisement in many media. Following are some of it.
Television
News paper
Hoardings
Magazine
Brochures

Budget:Budget means the estimated amount to be invested behind any investment. The
advertisement budget is mainly prepared by the head office and advertisement in
television and national news paper is given by the head office. Local news paper
advertisement is given by the branch.

Types:There are many types of advertisement available to any company in todays world.
The company is using the different type of advertisement at different stage of product
life cycle.
The company is making use of different types of advertisement at different phases of
the product life cycle. Informative advertisement is done at introduction stage as it
creates awareness in public about the product. Persuasive advertisement is made in
introduction stage to create preference in mind of customer over the competitors
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brand or product. Competitive advertisement is made to make comparison between

company product and competitors product at growth stage of the product. Reminder
advertisement is made at maturity stage of the product. Here the company has already
established itself in the mind of customer and general public.

Sales promotion:Sales promotion is a key ingredient in marketing campaigns. It consists of a diverse

collection of incentive tools, mostly of short term which is designed to stimulate
quicker or greater purchase of a product.
Advertisement offers a reason to buy and sales promotion offers an incentive to buy.

Sales promotion tools [for consumers]

Samples
Coupons
Cash refunds
Prices off
Demonstrations

Sales promotion tools [for traders]

Prices off
Advertising and display allowances
Free goods

ICICI Securities is providing the sales promotion in following ways

Account opening charge refund if customer has any ICICI product which
is 6 months old.

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Demonstration of product is made at bank as well as out of bank at regular

interval by executives.

Personal selling

As ICICI is selling the service and not a product , personal selling is more effective
and practical than other measures of increasing sale. The mouth to mouth publicity of
the service is the best publicity a company can get so to satisfy each and every
customer is priority of the company.

ICICI executives approach to the persons who have made query about the service and
they try to explain them each and every aspect of the service and its features.

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MARKETING STRATEGY
Competing on Valuable Resources
Every bank has a collection of physical and intangible assets and capabilities that it
has developed over a period. ICICI is having such unique stock of resources for its
competitive advantage.
One of the ways in which a resource becomes inimitable is due to physical
uniqueness. Physical location of a branch of bank in the heart of the financial centre
of any city is a unique resource that cannot be replicated. Another example of an
inimitable resource is a strong Brand name. Even if a competitor spends billions of
rupees, it will find it difficult to acquire the trust and brand equity that customers
associate with.
Scarcity: For the resource to be valuable, it should be scarce or rare. A prime
example of such resources is the Human Resources. For a service industry such as
banking where human resources form a significant source of value addition,
possession of excellent quality work force generates a key competitive advantage.

ICICI SECURITIES is having such skilled human resources.

ICICIWEBTARDE see itself a very strong player of the market. As per Mr. N
VAGHUL, the chairperson, the financial sector will play a crucial role in Indias
potential.

Mobilizing resources from households and canalizing these resources into areas
identified as development priorities was the main strategy ICICI adopted. Because of
their powerful resources of technology as well as human resource, they can compete
in this global era.
We have a strong focus on communicating with our investor to explain our strategy
and performance and understand their perspectives. Our ability to raise capital and the
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confidence that our investors have placed in us over the years have been critical to our
growth and new business initiatives.

Said KALPANA MORPARIA, DEPUTY MANAGING DIRECTOR of ICICI.

As far as marketing is concern, with ICICI Bank, we all know that how aggressively
the marketing activity of ICICI has done. Through different advertisements, through a
very strong background of technology and innovative product line.

ICICIWEBTRADE is having separate Marketing Division enriched with marketing

experts. As far as ICICIdirect.com is concern, the Regional Product Manager takes all
the decisions or in other word, you can say a branch head is the key person how to do
different activities regarding marketing.

The main product of ICICIWEBTRADE is an online account, and the unit is having
number of executives with proper training. These persons go in field and demonstrate
the product.

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HUMAN
RESOURSE
DEPARTMENT

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INTRODUCTION
Human Resource Management is one of the most important functional areas of any
company. As we know Even if we have latest technology, equipments and best
product in the market, but do not have proper human force to make effective
utilization, it is in vain. So H.R.M. has become one of the most important aspects of
any company.

H.R.M. means management of human resource, making their proper development as

and when required. Previously it was known as Personnel Department. It had a
limited scope of recruiting the human force as and when required, but as the time has
passed the value of Human has increased. Now management is considering the
human as human and not a factor of production.
One of the world famous people Mr. Henry Ford has said that YOU MANAGE
YOUR MEN AND YOUR MEN WILL MANAGE ALL OTHER THINGS. Today
this concept has been accepted by most of the companies working in India as well as
all over the world. Now all companies are interested in maintaining and developing
their existing manpower.

H.R.M. consists of all the activities related with the human. It includes the areas like
recruitment, selection, placement, induction, training, development, promotion,
transfer, demotion, wage and salary etc This all aspects are very crucial aspect for
any company as its main input is human in any production or service industry.

For a service providing company its work force is most important as they are
tengiblising the intangible service to make its sale. ICICI being a service providing
company is having more concerned with the human force. ICICI is Indias no. 1
private

Bank and has large number of employees. The ICICI has following strategies towards
the human resource.

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ORGANISATIONAL STRUCTURE
Organization is a group of people working together co-operatively under authority
towards achieving goals and objectives that mutually benefit both, organization and
employees. There is a specific flow of authority and responsibility from top to bottom.
This is defining who is responsible to whom. This is known as organizational
structure of the company. The organizational structure helps in better management
and control over the activities.

The main functions of organizational structure are as follow.

Task Accomplishment.
Delegation of Authority.
Proper span of supervision.
Proper communicational channel

Above all functions are performed through organizational structure of the company.
The structure helps to achieve the organizations goal more effectively and efficiently.

COUNTRY HEAD (MR. KARTIKEYAN)

REGIONAL HEAD (MR. ASHISH RATHOR)

UNIT MANAGER (MR. RONAK THAKKAR)

ASSISTANT UNIT MANAGER (MR. JAYESH

VASANI)
TRAINEES

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This organization structure is for Rajkot branch. The structure remains the same for
other branch also. The regional head is appointed per state and unit manager is
appointed per district. If needed there can be more than one unit manager in one
district. Assistant unit manager are appointed per branch. AUM appoints number of
trainees as per requirement in the market.

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HUMAN RESOURCE PLANNING

HRP means making planning about human resource. It includes managing human
force and making arrangement for future need also, so that proper employment is
maintained. HR manager need to estimate future need and arrange for suitable
candidate when needed. HRP is defined by many authors in different ways. Following
is one simple definition.

COLEMAN:
The process of determining manpower requirement and the means for meeting those
requirements in order to carry out the integrated plan of the organization.

Benefits:-

Better view to top management over the human resources.

Better utilization of available human resource.
Forecast of future need for employees may be done.

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RECRUITMENT RESOURCES
According to YODER, Recruitment is a process to discover the sources of
manpower to meet the requirement of the staffing schedule and to employ effective
measures for attracting that manpower in adequate number to facilitate effective
selection of an efficient working force.

ICICI Securities has two recruitment resources.

Internal resource
External resource

Internal resources:-

Internal recruitment means filling the vacancy by existing employees. It includes

shuffling of employees by transfer, promotion, demotion etc. In ICICI Securities post
of AUM and UM are filled by promotion given to trainees and AUM respectively.

Benefit:It improves morale of employee.

Better evaluation is possible of present employees.
Promotes loyalty among the employees.
Less costly compared to external recruitment.

Limitation:-

It discourages new person to enter in the company.

If promotion is given on bases of seniority then young talent may get
discouraged.

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External resources:-

Sometimes the requirement of the company does not match with the current
employees; the company now has to go for external recruitment. There are many
external sources from where a company can get the suitable candidates.

Following are some of the sources.

Colleges / campus recruitment

Press advertisement
TV advertisement
Employment agencies

External recruitment means recruiting a person from out side. This is used mainly for
trainees. They are supposed to have minimum education of graduation. Even students
of college are selected by AUM as trainees who have good communicational skill and
want to get marketing experience. Mainly local advertisement is given to fill up the
place of trainees.

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SELECTION PROCESS
If you are on the verge of completing your Management Education and believe that
the amazing world of Banking is for you, there is no better place to start than ICICI
Bank.

Cross-functional movements are strongly encouraged to build capability in each

employee to become a knowledgeable service provider.

To get started, fill in the profile form. They will create a login id number and
password in case of successful registration. Your registration details will be emailed
to you on your specified email ID. You must use the same to log on, to edit your
resume and to know your hiring status in our company.

You can respond directly to a Current Opening or submit your profile into Talent
Database for consideration against future opportunities.

If you have already applied, you can update your resume with the most recent
information or choose to re-apply against a different position.

To improve the selection process for recruitment at all levels in ICICI Bank, They
have carried out an in-depth study of the competencies required to succeed in ICICI
Bank.

As per their research, the competencies, which indicated success at the entry level in
ICICI Bank, are:

Drive for results

Process Orientation
Interpersonal Effectiveness
Analytical Thinking
Innovation
Team Effectiveness
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In order to assess the same they use a set of three tools

A Mental Ability Tests (for candidates with 0-2 years of work experience)
a Personality profiling system
The Mental Ability Test gives a fair and objective assessment of candidates
skills in the areas of verbal reasoning, numerical reasoning & diagrammatic
reasoning. These are important skills for the role of an entry-level manager
and people who do well in these tests tend to do well in their jobs at ICICI
Bank. The total time taken in this exercise is 2 hours with each of the three
sections lasting 40 minutes
Candidates (at all levels regardless of the number of years of work
experience) are also required to complete the Occupational Personality
Questionnaire (OPQ) before they appear for the interview, the results of which
are integrated into our interview process.

If you are very interested to work in an esteemed organization like ICICI Bank, ICICI
gives you the opportunity to prove yourself.

The link Current Openings will take you to all the jobs that are being sourced at
present. You can click on the jobs to check out the detailed description of the position.
Follow the local newspapers for any regional recruitment.

If you are in the middle of a professional programme, than you can apply for an
Internship with ICICI Bank by,

Their site http://www.icicicareers.com/www.icicicareers.com

click on the link

Campus Recruitment. This will take you to a page where most of the colleges are
listed. On choosing the appropriate college, a resume template appears. Fill that up
and choose Training as the category under Applying for option at the end of the
resume builder. On submitting the form, your resume will be processed as per
vacancies in ICICI Bank.
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There is no clerical cadre of employees in ICICI Bank. The entry-level employee in

our bank is an Officer.

Selection is a long process commencing from the preliminary interview of the

applicants and ending with the contract of employment. The hiring procedure is not a
single act, but it is a series of methods or steps by which additional information is
secured about the applicant. At each stage fact may come to light which may lead to
rejection of the applicant.

Selection process means a process through which most suitable person is selected
from the applicants. Normally there are written exam, oral test, interviews, and
practical test are taken as selection process. In ICICI Securities trainees are selected
on basis of interviews. Normally selection processes are done as per following.

Receipt of application:-

Normally local news paper advertisements are given in news paper for requirement of
trainees. Direct applications are submitted by candidate on web site.

Scrutinisation of application:-

Then the applications are being checked for their approval. Candidates which are
capable of doing job more efficiently are called for the written exam. The applicants
are informed by either mail or e-mail about the date of exam.

Written Interview:-

Normally written exam are not taken by the bank for job of trainee. But for the job of
AUM or administrative officer the exams are taken in major cities. The exam contains
questions on arithmetic ability and general knowledge.

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Oral Interview:-

The candidates whose applications are most suitable are called for oral interview.
Interviews are taken by AUM and UM.

Selection:-

The candidate who has cleared above stages is selected for the job.

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TRAINING AND DEVELOPMENT

Training is a process of learning a sequence of programmed behavior. It is application
of knowledge. It gives people an awareness of the rules and procedures to guide their
behavior in the market. It attempts to improve their performance on current job or
prepare them for an intended job.

Development is a related process. It covers not only those activities which improve
the job performance but also those which bring about growth of the personality. It
helps a person in progress towards maturity and actualization of their personal
capacity so that they become not only good employee but better men and women.

Following are some methods of training which are frequently used.

On the job training

On the job training method are the methods which gives the trainees opportunity to
work in an atmosphere which resembles or is itself the real atmosphere. It includes
following methods.

Job instruction training

Vestibule training
Training by experienced workmen
Demonstration
Simulation
Apprenticeship

Off the job training

Off the job training is generally given to provide information to the

trainees. This is

useful when the trainee has no experience. This training provides the back ground of
company to the trainee.

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Following are few of the job training methods

Lectures
Conferences
Group discussion
Case studies
Role playing
Programmed instructions
Laboratory training.

Newly entered trainees are given training by experienced trainees as well as AUM.
Firstly by AUM they are given full information and knowledge about all products and
then for practical training they are send with experienced trainees to get practical
knowledge about how to talk with customer, face to face as well as on phone. This is
called on the job training which gives practical exposure to trainee.

Development is a related process. It covers not only those activities which improve
the job performance but also those which bring about growth of the personality. It
helps a person in progress towards maturity and actualization of their personal
capacity so that they become not only good employee but better men and women.

For development of AUM bank and AUM they are arranging for seminars. UM are
also giving them guidance and regional head also visit the bank and give suggestion
for development if needed.

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PROMOTION & TRANSFER POLICY

Promotion:-

Promotion means vertical movement of employee in organization structure. It

increases salary as well as responsibility. Promotion in ICICI Securities is based on
performance. Consistent performance of a trainee gives promotion of AUM and
consistent AUM performance lead to UM.

Transfer:-

Transfer means horizontal movement of employee in organizational structure.

Transited in ICICI Securities is rare. Normally transfer is not done except it is asked
by employee himself or herself or new branch is opened and bank needs experience
person in new branch.

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WELFARE POLICY
ICICI Securities is now a part of the ICICI bank. The welfare policy of all the
companies working under ICICI group is framed by the ICICI group. It remains the
same for all the employees of the ICICI group. Following are some of the highlights
of the welfare policy of the ICICI group.

Trekking Club:

ICICI bank is encouraging the employees to go for new challenges. In the same cause
it arranges the trekking for the employees. Trekking means to find a new trek. It
develops the decision making and ability to handle a new situation. This provides
opportunity to employees to be physically and mentally fit and strong. It also connects
employees to the NATURE.

ICICI Bank organizes an annual trek to Uttarkashi. This makes employees satisfied as
they get chance to visit a place and joy of trekking.

Photography Club:

ICICI has a photography club in which all the interested employees get the
opportunity to learn from experts all about photography techniques, camera handling,
film developing and camera care. The club organizes contests with exciting prizes to
win! This encourages hobby development and sense of being counted as a family
member to the employees.

Saturday Kids Club:

For the children of our employees, a place to learn, unwind and have lots of fun. This
allows development of the children.

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Health Services:

The company provides a comprehensive medical plan with an on-site doctor and
dietician.

Discount offers / schemes:

Corporate discounts on stuff ranging from washing machines, PCs, and CDs round the
year.

Holiday Homes:

We have holiday homes in the better-known vacation spots all over the country.

Scholarship Schemes:

For the children of our employees, so that they may grow to reach new heights.

Organizational Excellence

The Organizational excellence group, headed by a senior General Manager who

reports to Managing Director & CEO , is engaged in institutionalizing quality across
the Bank by building skills and capabilities in various quality frameworks. The group
has evolved a holistic workplace transformation model by integration various quality
methodologies such as Five S and Six Sigma. The group has been instrumental in
facilitating enterprise-wide deployment of Five S and is currently catalyzing the
development of quality processes across the Bank. The group works with business
units to leverage quality for business improvements. The group also supports other
ICICI group companies in their quality initiatives.

Community Development:
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ICICIs social initiatives are designed to improve the capabilities of the poorest of the
poor to participate in the larger economy. They believe that optimizing child health in
the early years, providing universal elementary education and maximizing access to
micro financial services are critical for facilitating effective participation.

ICICI Bank's social sector initiatives aim to resolve some of the most fundamental
developmental problems facing India today. Our involvement is primarily in terms of
non-commercial support to fill knowledge and practice gaps in specific thematic
areas Early Child Health, Elementary Education and Micro Financial Services.

www.ICICIsocialinitiatives.org is an interactive platform that seeks to:

Bring together participants in the development process to widen and deepen

the discourse informing development practice. Interactive features include
discussion boards and facilities to post papers, articles or other resources.
Publish research related to innovations and significant problems within the
identified thematic areas.
Enable online application for funding

Early Child Health:

In fiscal 2005, ICICI collaborated with DHAN Foundation, an NGO in Tamil Nadu,
with federated self-help groups (SHGs) and a robust micro finance programme to
examine whether

(a) SHGs provide an effective mechanism for improving health outcomes through
community-based and participatory behavioral change communication.
(b) SHGs can mobilize communities and interface with local institutions to activate
the public health system.
(c) Innovative integration of microfinance and health care interventions can reduce
health care expenditure.
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Additionally, ICICI participated in planning for and developing a community based

health worker programme for the state of Jharkhand based on the learning derived
from an operations research project funded by them in two blocks of Ranchi district.
ICICI also consolidated their efforts to improve health of newborn infants in the city
of Mumbai through health system reform and community action.

Elementary Education:

ICICI believe that education is a basic capacity required by every individual to

critically participate in social, political and economic processes and avails of
opportunities to acquire additional advanced skills throughout life.

The aim of their work in elementary education is to maximize the number of 14 years
olds who have a basic level of education. During fiscal 2005, ICICI explored issues
influencing the quality of education received by poor children in urban areas,
undertook initiatives to collect data on student learning and supported resource
organizations working in the area of early childhood education. Further in
continuation of their strategy

to strengthen of Delhi, Madhya Pradesh and Rajasthan. In addition, they consolidated

their initiative with State Council of Educational Research and Training, Chhattisgarh
for development and testing of curricula and textbooks and other capacity building
measures.

Micro Financial Services

ICICIs initiative in the area of micro financial services seek to ensure that all
individuals, especially the poorest, have access to financial services. Their work in
this area is to ensure universal access to financial services and develop a
comprehensive suite to financial services. in particular , they are investing in training
facilities for the creation and strengthening of micro finance institutions( MFIs) as
also working towards addressing constraints such as lack of capital and nonavailability of suitable IT solutions. During Fiscal 2005, ICICI made rapid strides in
developing several products, including savings, investments, pensions, remittances
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and insurance (life and non-life, including weather, cattle and health insurance). These
products are in varying stage of development. A comprehensive health insurance has
already been introduced through ICICI Lombard General Insurance Company for the
poor in Anekal Taluka in Karnataka. The product insures 60,000 lives as provides
cashless treatment for 1,600 surgeries, in-patient and outpatient care at a premium of
Rs. 120-180 per person per annum. The product is being replicated in Manipal.
Similarly, the weather insurance product has also been successfully adopted by
various states in India. ICICI is now in the process of designing a weather insurance
product for the landless poor to cover loss of work due to adverse weather conditions.

ICICI Bank is divided into

(1) Wholesale banking

(2) Retail banking
(3) International banking

As a rapidly growing organization ICICI look to induct post-graduate management

talent from various business schools across the country. Enthusiastic and talented
youth form the backbone of their banking operations and will become future leaders
of ICICI.

ICICI

offers the grooming needed to be the best. ICICI

offers a wide range of

careers in all functions including - Finance, Marketing, Operations, Information

Technology and Human Resources.

ICICI having ability to nurture individuals and provide them the space and
empowerment they need to hone their talents. Size gives ICICI the unique ability to
provide fast growth and high responsibility early in ones career as well as multiple
avenues to reach the top.

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The Work Culture at ICICI Bank is a tech-savvy, non-hierarchical, work environment

where early responsibility and independent decision-making enable each employee to
reach his/her potential. Coupled with this is a strong performance management system
that has built a meritocracy where high performing-high potential individuals are duly
rewarded.

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FINANCE
DEPARTMENT

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INTRODUCTION
Finance is one of the most crucial aspects for any company or business. The finance is
needed at all ventures. ICICI being bank finance is inevitable aspect for the bank.
Before 1980 A.D. the function of financial manager was to just manage the inflow of
cash when ever needed by the company. But now the scenario has changed.

Finance is like lifeblood in any organization. It is very difficult to run business

without enough procurement of finance in current scenario.
According to Phillipatus Financial Management is concerned with the managerial
decisions that result in the acquisition and financing of long-term and short-term
credits for the firm.

The Financial Management is mainly concerned with the proper management of

funds. The finance manager must see that the funds are procured in a manner that risk,
cost and control considerations are properly balanced in a given situation and there is
optimum utilization of funds.

The financial manager is having mainly three aspects to manage.

1. Finance function.
2. Investment function.
3. Dividend function.

1. Finance function.

In finance function the manager has to estimate the financial need of the company and
then try to satisfy it in most efficient and effective way. i.e. To get the money as and
when needed.

JATIN S. BHATT

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2. Investment function.

In investment decision manager is performing the task of evaluating the project and
selecting the most profitable project for the company. Here the selection is done on
the bases of the companys priority.

3. Dividend decision.

The company is managed by professionals now a day. The real owners of the
company are the shareholders. Profit of the company is given to shareholders in form
of dividend. Management takes the decision how much profit to pay as dividend and
how much to retain.
According to modern management approach, Finance function is procurement of
funds, and then effective utilization in the business.

FINANCIAL SECTOR OVERVIEW

The financial sector witnessed significant developments during fiscal 2005. Credit
growth strengthened with an increase in industrial activity. Non-food credit increased
by 29.1% in fiscal 2005 compared to 18.5% in fiscal 2004. Based on the data
published by RBI, the industrial sector is estimated to have accounted for 27.0% of
credit growth in fiscal 2005 as compared to 16% in fiscal 2004. The contribution of
retail credit growth to overall credit growth was the largest at 42 % of total non-food
credit. The credit-Deposit ratio increased from about 56% in April 2004 and stood at
about 60% from November 2004 onwards. The incremental credit deposit ratio,
excluding the impact of conversion of IDBI into a bank, was about 100% in March
2005 compared to about 60% at the beginning of the year.

Deposit grew by Rs.2, 285.26 billion, or 14.5%, in fiscal 2005 compared to 16.2% in
fiscal 2004. The average yield on 10-year government securities increased from 5.5%
in fiscal 2004 to 6.2% in fiscal 2005. In response to the hike in CRR and the reverse
JATIN S. BHATT

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repo rate in the RBIs mid-year review, in November 2004, banks increased their
benchmark prime lending and deposit rates.

Growth in both the life and non-life insurance markets was significant. First year
premium underwritten in the life insurance sector recorded a growth of 35.7% to
reach Rs. 253.43 billion in fiscal 2005 with the private sectors market share
increasing from 13.0% in fiscal 2004 to 21.9% in fiscal 2005.

Gross premium in the non-life insurance sector grew by 12.8% to Rs. 180.95 billion
in fiscal 2005 with the private sectors market share increasing from 14.1% in fiscal
2004 to 19.6% in fiscal 2005.

Total asset under management of mutual funds grew by 7.2% from Rs. 1,396.16
billion at March 31, 2004 to Rs. 1496.00 billion at March 31, 2005.
The banking sector witnessed several important regulatory developments. In June
2004, guidelines on capital for market risk were issued. Under this, banks would be
required to
maintain a capital charge for market risk in respect of their trading and available for
sale investment portfolios.

RBI has issued draft guidelines for the implementation of the revised capital adequacy
framework of the Basel Committee. These are to be effective from fiscal 2007 and
prescribe a 75.0% weight for retail credit exposure, rating based differential risk
weights for other credit exposure and a capital charge for operational risk.

A roadmap for presence of foreign banks in India has also been outlined. Initially,
foreign banks are allowed entry only in private sector banks identified by RBI for
restructuring in which acquisition is allowed in a phased manner. On February 28,
2005, RBI released guidelines on ownership and governance in private sector banks.

JATIN S. BHATT

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The Indian financial sector is rapidly moving towards international benchmarks.

Progress in direction of increasing efficiency, transparency and dynamism in the
system has been rapid. Given the rapid growth prospects in India, the financial sector
has a crucial role to play in the development of the economy. Board based reforms
have made the banking sector competitive and have positioned it well to support
sustainable growth in a fast growing economy.

The strength of the bank has been its diversification into various businesses. It covers
almost all the financial arrears. Recently, it entered into the commodity market in a
big way. It has also tasted success with its branchless banking model.

JATIN S. BHATT

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CAPITALISATION AND CAPITAL

STRUCTURE
Capitalization means total capital of a company. Capital structure means how a
company gathers its total capital. ICICI Securities is part of ICICI Bank. It doesnt
have its own capital structure and capitalization. Capitalization and capital structure of
ICICI Bank as a whole is as given below.

Capitalization means total amount of a Companys capital or total value of capital. It

is the sum of owners capital + loan + retained earnings of business.

Gerston Bery defines capitalization as the total accounting value of all the capital
regularly employed in the business.

Capital Structure:

The capital structure of business should be such that, which helps to achieve the
objectives of finance department. The capital structure should be examined from the
view point of the impact of the value of the firm. It can be legitimately expected that
if the capital structure decision affects the total value of the firm, a firm should select
such Capital structure, which will maximize share holders wealth. Such type of capital
structure is called as OPTIMUM CAPITAL STRUCTURE (OCS). O.C.S. may be
defined as the capital structure, which is in the combination of debts and equity that
leads to the maximum value of the firm.

According to Gerstenberg, Capital structure refers to the makeup of firms

capitalization. Means it represents the mix of different sources of long-term funds
such as equity shares, preference shares, long-term loans, retained earnings etc.

JATIN S. BHATT

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In our organization the capital structure can be shown like below.

Particulars

2010 (Rs. In 000)

Subscribed and fully paid up 1,110,707

2009 (Rs. 000)

610,710

share capital.
Reserves and surplus

624,128.76

1,159,320

Loans (Debt).

4,291,600

4,481,850

Total

5026435.76

6251880

JATIN S. BHATT

Page 90

MANAGEMENT OF FIXED ASSETS

The fixed assets are distinguished from the current assets on the basis of length of
their physical and economic life, their convertibility into cash, the place they occupy
in the business cycle. Thus, fixed assets are permanent in nature and not easily
converted into cash. Huge firms are required to invest in fixed assets, for long period
and if any mistake made in evaluating investment proposals, must be shown by he
finance manager in evaluation investment proposal. These fixed assets have fixed
cost burden, therefore operating and financial efficiency of the firm have direct
bearing upon it.
There are two types of fixed assets:
1. Tangible assets
2. Intangible assets

Tangible assets include land, building, machinery, plants, etc. Intangible assets
includes goodwill, patent, trademark, etc., there are various aspects the manager
should keep in mind while preparing plan for fixed assets. These are as under:-

Time of acquisition of fixed assets:

Evaluation of capital project

Physical and economical life of project
Method of purchasing of fixed assets
Unit of investment in fixed assets
Regular records of each assets
Rate of depreciation on fixed assets
Plant maintenance

Replacement policy: Efficiency of each fixed assets

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CAPITAL BUDGETING
Capital Budgeting is the process of planning expenditure for assets, the return on
which are expected to continue beyond one year.

The investment of funds requires a number of decisions to be taken in a situation in

which funds are invested and benefits are expected over a long period. The finance
manager of concern has to decide about the asset composition of the firm. The assets
of the firm are broadly classified into categories viz. fixed and current. The aspect of
taking the financial decision with regard to fixed assets is known as capital budgeting.
The term capital budgeting means planning for capital assets. The capital budgeting
decision means a decision as to whether or not money should be invested in long term
projects.

There are so many methods available for taking decisions of capital budgeting some
of are as given below.

1). Payback period method.

2). The net present value method.
3). Profitability index.
4). Average rate of return method.
5). Internal rate of return method.

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WORKING CAPITAL MANAGEMENT

One of the most important areas in the day to day management of the organization is
the management of working capital. Working capital management is the functional
area of finance that covers the entire current accounts. Working capital refers to the
funds invested in current assets, i.e. investment in inventories, sundry debtors, cash
and bank balances etc. Current assets are essential to use fixed assets profitably.

Working capital requirement is one of the important criteria in every organization

proper concentration would always beneficial for organization.

The following are the main factors which should be taken into consideration while
determining the requirement of working capital.

1). Production policies.

2). Nature of Business.
3). Credit policy.
4). Inventory policy.
5). Market Conditions.
6). Conditions of supply.
7). Growth and expansion.
8). Level of Taxes.
9). Dividend Policy.
10).Price Level Changes.

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Concept of working capital:

There are 2 types of working capital management, namely (1) Gross and (2) Net.

1. Gross Working Capital

The firms gross working capital refers to total current assets of the firm. Current
assets are that which can be converted into cash within accounting year or a short
period. These assets should be more than current liabilities.

2. Net Working Capital

The term Net Working Capital refers to difference between current assets and current
liabilities. It guides the financial manager about the liquidity position of the firm.
The goal of Working capital management is to manage current assets and current
liabilities in such a way, that an acceptable level of Net working capital is maintained.

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FINANCIAL HIGHLIGHTS
(Rs. In million)
Fiscal 2009

Fiscal 2010

Gross Income

7409.00

5182.10

Profit before Tax

227.20

67.30

Provision for Tax

820.30

23.10

Profit after Tax

1506.90

44.20

Profit after Tax for the year ended March 31, 2010 decreased to Rs. 44.2 million from
Rs. 1506.90 million in the previous year, primarily due to overall decrease in income
by Rs. 2307.90 million.
After taking into account the balance of Rs. 635.10 million (previous year: Rs. 408.90
million) brought forward from previous year, profit available for appropriation is Rs.
679.30 million (previous year:Rs. 1906.70 million), of which Rs. 20.0 million
(previous year Rs. 149.80 million) has been transferred to General Reserve.

DIVIDEND
During the year, the Company declared two interim dividends on the equity share
capital, aggregating 39.31% and amounting to Rs. 240.1 million. The Directors are
pleased to recommend the aggregate of interim dividends at Rs. 240.1 million as final
dividend for the year.
The Company had, on December 19, 2009, issued 5,000,000, 13.75% NonConvertible Cumulative Redeemable Preference Shares to ICICI Home Finance
Company Limited. The Directors are pleased to recommend a dividend @ 13.75% per
annum for the period from December 19, 2009 to March 31, 2010 amounting to Rs.
19.4 mil
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RATIO ANALYSIS
Ratio analysis is one of the techniques of financial analysis where rations are used as
a yardstick for evaluating the financial condition and performance of the firm.
Analysis and interpretation of various accounting rations gives skilled and
experiences analyst a better understanding of the financial condition and performance
of the company than what he could have obtained only through a perusal of financial
statements.

Ratios are relationships expressed in mathematical terms between figures which are
connected with each other in come manner. Obviously, no purpose will be served by
comparing two sets of figures which are not at all connected with each other.
Moreover absolute figures are also unfit for comparison.

1). Current Ratio

This ratio measures the solvency of the company in the short term. Current assets are
those assets which can be converted into cash within a year. Current liabilities and
provisions are those liabilities that are payable within a year.

Current Ratio =

Current Assets
Current Liabilities

2010

2964117.1

= 1.43

2066709.49

2009

7696700

= 2.20

3494640

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2). Quick Ratio

Quick ratio is used as a measure of the companys ability to meet its current
obligations. Since bank overdraft is secured by the inventories, the other current assets
must be sufficient to meet other current liabilities.
Quick Ratio = Current Assets, loans & Advances Inventories
Current Liabilities & Provisions Bank overdraft
2010 = 2963199.1

= 1.434

2066709.49

2009 = 7459780

= 2.13

3494640

3). Debt Equity Ratio

This ratio indicates the relationship between loan funds and net worth of the company,
which is known as gearing. If the proportion of debt to equity is low, a company is
said to be low geared, and vice versa.

Debt Equity Ratio =

Long term debt

Share holder fund

2010

= 4291600

= 3.86

110707.00

2009 = 4481850

= 7.34

610710

JATIN S. BHATT

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4). Shareholders Equity Ratio

This ratio is calculated as follows:

Shareholders Equity
Total Assets
It is assumed that larger the proportion of the shareholders equity, the stronger is the
financial position of the firm. This ratio will supplement the debt-equity ratio. In the
ratio, the relationship is established between the shareholders funds and the total
assets.

2010

= 1734835.76

= 0.214

8093145.15

2009

= 1770030

= 0.182

9740579

5). Fixed Assets to Long term fund

The fixed assets are shown as a proportion to long term funds as follows:

Fixed assets to long term fund

= Fixed Assets
Long term funds

This ratio indicates the proportion of long term funds deployed in fixed assets. Fixed
assets represent the gross fixed assets minus depreciation provided on this till the date
of calculation. Long term funds indicate share capital, reserves and surplus and long
term loans. The higher the ratio indicates the safer the funds available in case of
liquidation. It also indicates the proportion of long term funds that is invested in
working capital.
JATIN S. BHATT

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2010 = 406336.45

= 0.095

4291600

2009 = 384384

0.086

4481850

JATIN S. BHATT

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RESEARCH
METHODOLOGY

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Research Objective
Research on Comparative analysis of Icicidirect.com with
other companies
Today market is very competitive .That is why Icicidirect.com is also facing
competition from the other players in online share trading. So it requires to knowing
the product &services provided by the other players. It will give the co.the data & the
statesstics about the product and services of the other online trading players. It will
help the company to know how to get competitive advantage from the other players.

Any activity done without any objective in a mind cannot turn fruitful. An objective
provides a specific direction to an activity. Objectives may range form very general to
very specific, but they should be clear enough to point out with reasonable accuracy
what researcher wants to achieve through the study and how it will be helpful to the
decision maker in solving problem.
To the product know and services of other online trading players
To know the positive things about the companys own product from others
To know the possible product changes required in current product
To find the lacking in the current product.

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Research design
A research design is pattern or an outline of a research projects working. It is a
statement of only the essential elements of a study, those that provide the basic
guidelines for the details of the project. It comprises a series of prior decisions that
taken together provide a master plan for executing a research project.

A research design serves as a bridge between what has been established i.e. the
research objective and what is to be done, in conduct of the study to realize those
objectives. If there were no research design, the research would have only foggy
notion about what is to be done. There are numerous specific designs, which can be
classified into three broad categories.

Research design is the conceptual structure within which the research would be
conducted. In fact, it is the general blueprint for the collection, measurement and
analysis of data.

Data Collection
After taking the objectives into consideration resources of data are decided.
Mainly data sources are primary data and secondary data. Secondary data are
the data that were collected for another purpose and already exist somewhere.
Primary data are data gathered for a specific purpose or for a specific research
project. The following are the data acquired for the study:

Secondary Data Sources

It refers to already gathered and collected data. These may be internal sources
within the clients firms. Externally, these sources may include books or
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periodicals, reports and computer data banks. Here, the data is being collected
from:
1. Details about the organization from websites of all the
companies
2. Brochures of the Company

Primary Data Sources

This data is gathering for the first time for the problem solution. Primary data
has to be collected through well-equipped instruments, as they are first hand
information collected for the research.

SAMPLING DESIGN
PROBABILITY/
PROBABILITY

NON

PROBABILITY

Sampling Unit

Online trading companies

Sample Size

6 Online trading companies

Sampling Procedure

Simple Stratified Sampling

Other on-line share trading co.s are

ICICIDIRECT.COM

WWW.ICICIDIRECT.COM

Sharekhan

www.sharekhan.com

5paisa

www.5paisa.com

Indiabulls securities ltd.

www.indiabulls.com

HDFC Securities

www.hdfcsec.com

Kotak Securities

www.Kotaksecurities.com

JATIN S. BHATT

Page 103

Comparative
Analysis

JATIN S. BHATT

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Here comparative analyses of sites have been done.

Market: ICICI Direct.com is doing trade in both NSE as well as BSE market whereas
India bulls, HDFC Securities, kotak street doing in BSE market only. 5paisa is doing
in both BSE as well as NSE market.

So in case of ICICI Dirct.com is concern, it takes 40 to 50 seconds for that

where as India bulls is lowest in them and it takes 2 to 3 seconds, 5paisa.com takes 3
to 5 seconds, Kotak Street takes 5 to 10 seconds, Share khan takes 5 to 10 seconds
and HDFC Securities takes 40 to 50 seconds.

ICICI Direct.com takes this much time because they will give you first buying
or selling page where you have to fill information then after you have to proceed
where they will give you order verification page where you will check then after you
have to proceed and this particular order verification will sent to the exchange then
after order acknowledgement receipt will come and then after we have to see in order
book whether order is executed or not so it takes so much time where as in other site
they will give you within 5 to 10 seconds.

Linkage: In online trading, it link with 3 in 1 account where it include bank account,
demat account and trading account. Where it easily takes place transaction and we can
easily transfer money from saving to secondary market, IPO, mutual fund, derivative
and other product.

In ICICI Direct.com, it also linked with 3 account and it is its own DP a\c,
saving a\c and trading a\c. where as in India bulls, share khan and 5paisa.com they
have its own
DP a\c and trading a\c but not saving a\c, it has to be open in other bank a\c. where as
kotak street and HDFC Securities having its own 3 account.

Quotes update technology: this is a technology where latest and live quotes will be
updated second to second. it also update latest price, volume, volatility etc.

JATIN S. BHATT

Page 105

In India bulls, kotak street, sharekhan and in 5paisa.com, it is having trading

through terminal so it is giving very fast update technology about the quotes where as
in ICICI Direct.com still no such a type of technology like terminal trading is there
but it gives fast updating technology and in the same way HDFC Securities also
provides this facility.

Registration charges: it is charges where we have to pay at the time of registration

may be lifetime account, stamp duty charges, intermediary commission.

In ICICI Direct.com and in HDFC Securities, it is Rs. 750. also in 5paisa.com

it is Rs.750, in kotak street and share khan it is Rs, 500 where as it is Rs. 500 in India
bulls.

Registration Time: It is the time between filling up form and activation of account. It
includes rejection time period.

In ICICI Direct.com, it takes 2 to 3 weeks registration time but some time it

will give us quick response about of it also. Whereas in 5paisa.com it takes 10 days
and in kotak street it takes 7 days, where as in share khan it takes 7 days, where as in
India bulls it takes 4 days only where as in HDFC Sec., it takes 2 to 3 weeks.

Terminal: this is an important technology for trading in secondary market where

latest price, which share is going up, which share is going down, % change, we can
see real trade practices on it, it is wise instrument.

India bulls, share khan, 5paisa.com, kotak street provided terminal to their
customer at extra cost.

Call alert facility: it is good facility provided where alert provided by company to its
customer about indicator.

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Page 106

ICICI Direct.com give this indicator with the help of giving message. e.g. if
you have suggested that if particular stock increase to this prices then give me alert
then this system give you alert and message come on your mobile. In other site like
India bulls they will send you message in messenger.other site send you e-meil.

JATIN S. BHATT

Page 107

COMPARISION
Particulars

ICICI Direct

HDFC Sec.

A/c. Opening

750

750

Cash Segment ( Delivery )

0.75%

0.50%

Margin Segment ( Same Day )

0.15%

0.15%

A/c. Opening

NIL

NIL

Annual Service Chages

350

299

Market Buy

0.02%, Mini Rs. 20

0.04%,Mini. Rs. 25

Market Sell

0.04%, Mini Rs. 20

0.04%,Mini. Rs. 25

Off-Market Buy

0.02%, Mini Rs. 20

0.04%,Mini. Rs. 25

Off-Market Sell

0.04%, Mini Rs. 20

0.04%,Mini. Rs. 25

Dematerialization

Rs. 35 per request, Rs. 2 per certificate

Rs. 35 per request, Rs. 3 per certificate

Rematerialization

Rs. 20 per entry

Rs. 10 per cetificate, Mini. Rs. 10

Custody Charges

0.75 per month per ISIN

Rs. 1.25 per month per ISIN

ICICI-5000

HDFC-5000

Cash Segment ( Delivery)

1 time

4 times

Margin Segment ( Same Day )

3 to 25 times

4 times

Saving Bank A/c. With

ICICI Bank

HDFC Bank

Demat A/c. With

ICICI Bank

HDFC Bank

Brokerage:-

Demat Charges:-

Mini. Bal. Requirement in

Savings A/c.

Limit Exposure:-

JATIN S. BHATT

Page 108

Icicidirect.com vs. Hdfc securities

Competitive Advantages of icicidirect.com
Market Buy & off-market sell charges are less than the hdfc securities
I.e. in icici 0.02%, mini Rs. 20
in hdfc 0.04%, mini Rs. 25
Custody charge of Icicidirect.com is also less than the hdfc sec.
I.e. Icici 0.75 per month per ISIN
hdfc 1.25 per month per ISIN
More limit exposure providing to the customers I.e. 3 to 25 times limit
exposure in margin segment(same day), where hdfc providing only 4 times
limit exposure.

Drawbacks of Icicidirect.com
Brokerage is more than the hdfc I.e. 0.75% where in hdfc it is only 0.50%.
Annual service charge is also higher than the hdfc I.e. in icici Rs. 350 where
in Hdfc it is only Rs.299.
Rematerialization charges is also higher than the hdfc I.e. in icici Rs. 20 per
entry & in hdfc it is only Rs. 10 per certificate, mini Rs.10

JATIN S. BHATT

Page 109

Particulars

ICICI Direct

Kotak Street

A/c. Opening

750

500

Cash Segment ( Delivery )

0.75%

0.50%

Margin Segment ( Same Day )

0.15%

0.10%

A/c. Opening

NIL

NIL

Annual Service Chages

350

240

Market Buy

0.02%, Mini Rs. 20

0.04%, Mini. Rs. 15

Market Sell

0.04%, Mini Rs. 20

0.04%, Mini. Rs. 15

Off-Market Buy

0.02%, Mini Rs. 20

0.04%, Mini. Rs. 15

Off-Market Sell

0.04%, Mini Rs. 20

0.04%, Mini. Rs. 15

Brokerage:-

Demat Charges:-

Rs. 25 per request, Rs. 3 per

Dematerialization

Rs. 35 per request, Rs. 2 per certificate

certificate

Rematerialization

Rs. 20 per entry

0.04% of the value, Mini. Rs. 15

Custody Charges

0.75 per month per ISIN

Rs. 1.25 per month per ISIN

HDFC-2500+5000 Deposite for 7

Mini. Bal. Requirement in

Savings A/c.

ICICI-5000

days
UTI-1000+5000 Deposite for 7
days
KOTAK-2500+5000 Deposite for
7 days

Limit Exposure:Cash Segment ( Delivery)

1 time

4 times

Margin Segment ( Same Day )

3 to 25 times

4 times

Saving Bank A/c. With

ICICI Bank

HDFC,UTI,KOTAK

Demat A/c. With

ICICI Bank

Kotak Securities

JATIN S. BHATT

Page 110

Icicidirect.com vs. Kotak Street

Competitive Advantage of ICICIdirect.com
In Icicidirect.com only Rs. 5000 minimum balance requirement where in
Kotak street the minimum balance requirement is more I.e. in Hdfc
2500+5000 deposit for 7days, in UTI 1000+5000 deposit for 7 days or in
Kotak 2500+5000 deposit is required.
Highest limit exposure in case of margin segment (same day) given to the
customers i.e. 3 to 25 times where in the Kotak it is only 4 times given.

Drawbacks of Icicidirect.com
Account opening charge is higher than the Kotak street i.e. Rs. 750 where in
Kotak it is only Rs. 500.
Brokerages is also higher than the Kotak street i.e. in Icicidirect.com it is
o.75% & 0.15% where in Kotak it is only 0.50% & 0.10%
Annual service charge of demat account is also higher than the Kotak i.e. in
icici it is Rs. 350 & in Kotak it is only Rs. 240.

JATIN S. BHATT

Page 111

Particulars

ICICI Direct

5-paisa

A/c. Opening

750

750

Cash Segment ( Delivery )

0.75%

0.50%

Margin Segment ( Same Day )

0.15%

0.10%

A/c. Opening

NIL

NIL

Annual Service Charges

350

250

Market Buy

0.02%, Mini Rs. 20

NIL

Market Sell

0.04%, Mini Rs. 20

Rs. 20 per transaction

Off-Market Buy

0.02%, Mini Rs. 20

NIL

Off-Market Sell

0.04%, Mini Rs. 20

Rs. 20 per transaction

Rs. 35 per request, Rs. 2 per

Rs. 25 per request, Rs. 5 per

Dematerialization

certificate

certificate

Rematerialization

Rs. 20 per entry

Rs. 15 per certificate

Custody Charges

0.75 per month per ISIN

Rs. 1.00 per month per ISIN

Mini. Bal. Requirement in

ICICI-5000

ICICI-5000+5000 Deposit

Brokerage:-

Demat Charges:-

Savings A/c.

HDFC-2500+5000 deposit

Limit Exposure:Cash Segment ( Delivery)

1 time

1 time

Margin Segment ( Same Day )

3 to 25 times

5 times

Saving Bank A/c. With

ICICI Bank

ICICI,HDFC

Demat A/c. With

ICICI Bank

India Infoline Securities

JATIN S. BHATT

Page 112

Icicidirect.com vs. 5-paisa

Competitive Advantage of icicidirect.com
In Icicidirect.com only Rs. 5000 minimum balance requirement where in 5paisa the customer have to kept minimum balance Rs. 5000+5000 deposit in
icici or in hdfc 2500+5000 deposit is required.
Highest limit exposure in case of margin segment (same day) given to the
customers i.e. 3 to 25 times where in the Kotak it is only 4 times given.

Drawbacks of Icicidirect.com
Brokerages is higher than the 5-paisa i.e. in Icicidirect.com it is o.75% &
0.15% where in 5-paisa it is only 0.50% & 0.10%
Annual service charge of demat account is also higher than the 5-paisa i.e. in
icici it is Rs. 350 & in 5-paisa it is only Rs. 250.

JATIN S. BHATT

Page 113

Particulars

ICICI Direct

Indiabulls

A/c. Opening

750

500

Cash Segment ( Delivery )

0.75%

0.50%

Margin Segment ( Same Day )

0.15%

0.10%

A/c. Opening

NIL

200

Annual Service Chages

350

NIL

Market Buy

0.02%, Mini Rs. 20

NIL

Market Sell

0.04%, Mini Rs. 20

Rs. 17 per transaction

Off-Market Buy

0.02%, Mini Rs. 20

NIL

Off-Market Sell

0.04%, Mini Rs. 20

Rs. 17 per transaction

Rs. 35 per request, Rs. 2 per

Rs. 25 per request, Rs. 1 per

Dematerialization

certificate

certificate

Rematerialization

Rs. 20 per entry

0.02% of the value, Mini Rs. 15

Custody Charges

0.75 per month per ISIN

Rs. 1.25 per month per ISIN

Brokerage:-

Demat Charges:-

Mini.

Bal.

Requirement

in

ICICI-5000
ICICI-5000

Savings A/c.

HDFC-2500

Limit Exposure:Cash Segment ( Delivery)

1 time

3 times

Margin Segment ( Same Day )

3 to 25 times

6 times

Saving Bank A/c. With

ICICI Bank

ICICI,HDFC

Demat A/c. With

ICICI Bank

Indiabulls Securities

JATIN S. BHATT

Page 114

Icicidirect.com vs. Indiabulls

Competitive Advantage of ICICIdirect.com
Highest limit exposure in case of margin segment (same day) given to the
customers i.e. 3 to 25 times where in the Indiabulls it is only 6 times given.
Custody charges is less than the Indiabulls i.e. 0.75 per month per ISIN where
in Indiabulls it is 1.25 per month per ISIN.

Drawbacks of Icicidirect.com
Account opening charge is higher than the Indiabulls i.e. Rs. 750 where in
Indiabulls it is only Rs. 500.
Brokerages is also higher than the Indiabulls i.e. in Icicidirect.com it is o.75%
& 0.15% where in Indiabulls it is only 0.50% & 0.10%
Annual service charge of demat account is also higher than the Indiabulls i.e.
in icici it is Rs. 350 & in Indiabulls it is nil.

JATIN S. BHATT

Page 115

Particulars

ICICI Direct

Share khan

A/c. Opening

750

500

Cash Segment ( Delivery )

0.75%

0.50%

Margin Segment ( Same Day )

0.15%

0.10%

A/c. Opening

NIL

NIL

Annual Service Chages

350

300

Market Buy

0.02%, Mini Rs. 20

NIL

Market Sell

0.04%, Mini Rs. 20

NIL

Off-Market Buy

0.02%, Mini Rs. 20

Rs. 18 per transaction

Off-Market Sell

0.04%, Mini Rs. 20

Rs. 18 per transaction

Rs. 35 per request, Rs. 2 per

Rs. 15 per request, Rs. 3 per

Dematerialization

certificate

certificate

Rematerialization

Rs. 20 per entry

Rs.15 per certificate.

Custody Charges

0.75 per month per ISIN

no charges

ICICI-5000

HDFC-2500+10000 Deposite

Cash Segment ( Delivery)

1 time

4 times

Margin Segment ( Same Day )

3 to 25 times

4 times

ICICI Bank

HDFC, UTI, GTB, IDBI, citi

Brokerage:-

Demat Charges:-

Mini.

Bal.

Requirement

in

Savings A/c.

Limit Exposure:-

bank

Saving Bank A/c. With

Demat A/c. With

JATIN S. BHATT

ICICI Bank

Share khan

Page 116

Icicidirect.com vs. Sharekhan

Competitive Advantage of ICICIdirect.com
Highest limit exposure in case of margin segment (same day) given to the
customers i.e. 3 to 25 times where in the Sharekhan it is only 4 times given.
In Icicidirect.com only Rs. 5000 minimum balance requirement where in
Sharekhan the customer have to kept minimum balance Rs. 2500+10000
deposit required in hdfc.

Drawbacks of Icicidirect.com
Account opening charge is higher than the Sharekhan i.e. Rs. 750 where in
Sharekhan it is only Rs. 500.
Brokerages is also higher than the Sharekhan i.e. in Icicidirect.com it is o.75%
& 0.15% where in Sharekhan it is only 0.50% & 0.10%
Annual service charge of demat account is also higher than the Sharekhan i.e.
in icici it is Rs. 350 & in Sharekhan it is Rs. 300.

JATIN S. BHATT

Page 117

Limitation of the study

The information given by the person of company may not be completely
correct. Some information may be given wrongly which may not be factual.
The complete parameters to compare the Online product are not included.

Visual look of the Software and different facilities of software are not
included.

Only one person of a company is interviewed.All the parameters may not be

relevant for all the companies.

Due to limitation of time and cost constraints a sample size of only 6

companies of online trading are chosen. This exploratory research is done
focusing on the Comparative analysis scenario of Saurashtra region only
therefore findings and suggestions given on the basis of this research and
cannot be considered for the entire stock market Industry.

As we all know, security market is highly volatile. We may predict about it

more accurate but due to uncertain driving forces the predictions may not
work.

The market risks and uncertainties are always there

JATIN S. BHATT

Page 118

RESEARCH FINDINGS
Limit Exposure in case of margin segment (same day) is higher than all other
companies.
Account opening charge is also higher than the other companies.
Still quotes of BSE trading time are late by 10 to 15 minutes.
Some time we cannot execute trade on BSE market.
Still transaction speed is not high in compare to other companies.
Brokerage charges is also higher than the other companies.
Some customers demanding more limits in deliver trading which is lower than
other sites.
Some customers are interested in account opening but not ready for
maintaining minimum Rs. 5000 balance in saving account.
Annual Service charge is higher than the other companies.

JATIN S. BHATT

Page 119

RECOMMENDATIONS & SUGGESTIONS

For Brokers
Brokerage Firms need to ensure that their ability to provide effective customer
service keeps pace with their growth, if you are marketing your firm to new
customers, you better be able to provide them service when they do business
with you.
All firms, whether on-line, discount or full service, have an obligation to
ensure the best execution of their customers orders.
Network infrastructure will have to be stabilized. The Internet an computers
will have to penetrate further in day-to-day life of investors. When security
and accessibility issues are resolved and technology stabilizes successful
investor will find the actual time spent trading will be minimal. Nearly all the
effort involved will relate to monitoring the standards that have been set. Not
so hard, but not so easy

FOR COMPANY:

Company should decrease brokerage. Right now it is 0.75% on delivery and

0.15% on margin trading.
Company should decrease the account opening charges so that more & more
customers can be attracted.
Annual charges should be decrease because the other companies have very
less annual charges.
Sometime problem arise on BSE market trading where we cannot execute
trade on it. So company should improve infrastructure facility.
Awareness should create among the people about this new type of technology
with the help of seminar and expert session.

JATIN S. BHATT

Page 120

FOR CUSTOMER:

Customer should not worry about brokerage part because services are far
better and different types of products are there in the company.
ICICI Direct.com is part of ICICI Group & this group is trusted by million of
people.

For investors
There is risk of loss associated with investing in securities regardless of the
method used. New investors need to understand the principles of investing, their own
risk tolerance, and their investment goals before venturing into the market. In
addition, online investors may want to consider these other risks. High Internet traffic
may affect online investors ability to access their account or transmit their orders.
Online investors should be skeptical of stock advice and tips provided in chat rooms
or bulletin boards. Investors should do their own research before acting on these tips.
Also, for some online investors, there is a temptation to "overtrade" by trading too
frequently or impulsively without considering their investment goals or risk tolerance.
Overtrading can effect investment performance, raise trading costs, and complicate
your tax situation.

JATIN S. BHATT

Page 121

CONCLUSION
Online Trading is successful in other parts of the world, especially in the US.
Thats because it has a strong culture of using credit cards (plastic money) and
a strong law and order system. If you look beyond the US, even other leading
markets like Hong Kong are still in a premature stage for execution of internet
trading. As for the future of internet broking in India, It sounds exciting, but
when we talk about the net penetration level of telecommunication and
computer usages, it is poor in India. Since the concept is new to investors, it is
very important that they follow certain guidelines, which will ensure safe
trading. Removing the mental block from the minds of the investor with regard
to online trading. The Indian stock market faces the challenge of setting up this
infrastructure. Another important point is people of India specifically; investors
are not too much techno. This has been achieved through active use of cuttingedge technology and being improved by highly motivated and skilled
employees.
The success of e-broking would depend on addressing each and every
issue faced by the investors in offline trading and delivering the service in a
seamless manner backed by world-class customer service.
Finally India needs a robust and world class IT and telecom
infrastructure coupled with explosion in Internet penetration. In under served
Internet market of India, this is one definite case of build and they will come.

JATIN S. BHATT

Page 122

Bibliography

WEBSITES

http://www.hdfcsec.com
http://www.indiabulls.com
http://www.5paisa.com
http://www.icicidirect.com
http://www.sharekhan.com
http://www.omkotak.com.
http://www.HDFC.com
http://www.indiabulls.com
www.nsdr.com
www.notension.biz
www.traderji.com

BOOKS

Marketing Management

JATIN S. BHATT

- Philip Kotler

Research Methodology

- C.R Kothari

HRM

- K.Aswathapa

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