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Historical Background of ICICI Bank:

The history of Industrial Credit & Investment Corporation of India (ICICI) shows that it was formed in 1955 by the initiative of the World Bank, the Government of India and representatives of Indian industry. The principal objective of ICICI was to create a development financial institution for providing medium-term and long-term project financing to Indian businesses. In the 1990s, ICICI transformed its business from a development financial institution offering only project finance to a diversified financial services group offering a wide variety of products and services, both directly and through a number of subsidiaries and affiliates like ICICI Bank. In 1999, ICICI became the first Indian company and the first bank or financial institution from nonJapan Asia to be listed on the NYSE. Due to the changing business environment and after the adoption of liberalization, ICICI considered various corporate restructuring 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 the entities, and would create the optimal legal structure for the ICICI group's universal banking strategy. Further, the merger would enhance value for ICICI shareholders through the merged entity by low-cost deposits, greater opportunities for earning fee-based income and the ability to participate in the payments system and provide transaction-banking services. Consequently, ICICI Bank was promoted in 1994 by ICICI Limited, an Indian financial institution, and was its wholly-owned subsidiary. In October 2001, the Board of Directors of ICICI and ICICI Bank approved the merger of ICICI and two of its wholly-owned retail finance subsidiaries, ICICI Personal Financial Services Limited and ICICI Capital Services Limited, with ICICI Bank. Shareholders of ICICI and ICICI Bank approved the merger in January 2002, by the High Court of Gujarat at Ahmedabad in March 2002, and by the High Court of Judicature at Mumbai and the Reserve Bank of India in April 2002. The below mentioned table gives details of all the mergers and amalgamations done by ICICI Bank.

Vision:
To be the leading provider of financial services in India and a major global bank.

Mission:
We will leverage our people, technology, speed and financial capital to:

be the banker of first choice for our customers by delivering high quality, world-class products and services. expand the frontiers of our business globally. play a proactive role in the full realisation of Indias potential. maintain a healthy financial profile and diversify our earnings across businesses and geographies. maintain high standards of governance and ethics. contribute positively to the various countries and markets in which we operate. create value for our stakeholders.

Ethics
Ensure that external, internal & online communications are in line with the Banks Social Media Policy. Respect personal dignity, privacy, and personal rights of every individual. Work together with women and men of various nationalities, cultures, religions, and races in a professional manner. Be open and honest and stand by your responsibility. Treat our customers, suppliers, competitors and employees fairly Maintain the safe and healthy working environment provided by the company Be committed to prevent wasteful use of natural resources

DESCRIPTION OF ICICI:
IN THIS CHART THE MANAGEMENT STARTS FROM GOVERNING BODY AND IT IS DIVIDED INTO VICE-PRESIDENT IS FURTHER DIVIDED INTO EXECUTIVE DIRECTOR, CO ORDINATOR, DIRECTOR THESE ALL ARE TOP LEVEL MANAGEMENT THEN IT COMES FACULTY GENERAL BODY WHICH IS DIVIDED INTO SUB COMMITTES LIKE ACADEMIC COMMITTEE ETC FURTHER THE RESEARCH PUBLICATION COMMITTEE ARE DIVIDED INTO CELLS LIKE PRODUCTION ENGINEERING CELL, FINANCIAL SERVICE CELL ETC. IN THIS WAY THE WORK IS DISRIBUTED FROM TOP TO BOTTOM.

Measurements lead to Success


ICICI Bank is the pioneer in implementing a data warehousing (DW) solution for banking in India. The enterprisewide data warehouse at ICICI bank is powered by Sybase IQ, a highly optimized business intelligence, analytics and data warehousing solution for delivering dramatically faster results at a low cost. As ICICI Bank is Indias largest private sector bank. It has network of 1,308 branches and 3,950 ATMs as well as robust Internet banking. The Bank is present in 19 countries, including India. Previously, the bank was dependent on its DW from Teradata. With dramatic growth in its users, amount of data, and source stations, etc., the increasing cost of scaling and maintenance and mounting system unavailability pose difficulties for the bank. To resolve these recurring problems, the bank undertook a migration of the enterprise data warehouse from Teradata to Sybase IQ. The success of this project provides the bank with an always available system, visibly increased query performance, and lower TCO among a host of many other benefits.

Special Responsibilities of Superiors and Managers:


In addition to responsibilities as employees, supervisors and managers must abide by the: Duty of selection - Carefully select the employees for a job in light of their personal and professional qualifications. The duty of care increases with the importance of the obligation to be entrusted to the employee. Duty of instruction Formulate obligations in a precise, complete, and binding manner, especially with a view to ensure compliance with provisions of instructions.

Duty of monitoring - Ensure that compliance with provisions of applicable laws /regulations is monitored on a constant basis. Duty of communication Communicate to the employees that any violations of the applicable laws/regulations are disapproved of and would have disciplinary implications.

STRENGTHS:

ICICI is the second largest bank in terms of total assets and market share Total assets of ICICI is Rs. 4062.34 Billion and recorded a maximum profit after tax of Rs. 51.51 billion and located in 19 countries One of the major strength of ICICI bank according to financial analysts is its strong and transparent balance sheet ICICI bank has first mover advantage in many of the banking and financial services. ICICI bank is the first bank in India to introduce complete mobile banking solutions and jewelry card The bank has PAN India presence of around 2,567 branches and 8003 ATMs ICICI bank is the first bank in India to attach life style benefits to banking services for exclusive purchases and tie-ups with best brands in the industry such as Nakshatra, Asmi, Ddamas etc ICICI bank has the longest working hours and additional services offering at ATMs which attracts customers Marketing and advertising strategies of ICICI have good reach compared to other banks in India

OPPORTUNITIES:
Peoples dissatisfaction towards nationalized banks in terms of services has turned to be blessing for private banks. Among the private players ICICI bank have the excellent brand image. There lies a great scope in forex department which is unutilized to a greater extent can yield much better results by which the bank can increase its volume. Special services can be provided to women as the womens role is becoming prominent. The trust of people is increasing on the banks rather then going for financial institution. There is vast untapped opportunity which lies for every bank in the rural area.

Workplace Responsibilities
Fair Employment Practices and Diversity ICICI Group is committed to adoption of fair employment practices. It ensures diversity of workplace through efforts to recruit, develop and retain the mostmtalented people from a diverse candidate pool. It upholds the principle that advancement is based on talent and performance and there is a commitment to equal opportunity. As a fair employment practice, we expect that you shall not (during the course of your service or upon cessation of your service for a period of six months from the date of cessation) directly or indirectly on your own accord or on behalf or in conjunction with any other person, convey or solicit or attempt to induce any employee or business associate to leave their current employment with ICICI Group and join the service of the new employer or any competitor.

Drug Free Workplace "You should ensure that your workplace is healthy and productive and free from drugs." Discrimination and Harassment and Intimidation ICICI Group is committed to prohibition of harassment and intimidation of employees in the workplace. ICICI Group discourages conduct that implies granting or withholding favours or opportunities as a basis for decisions affecting an individual, in return for that individuals compliance. Such action is an easier form of harassment to identify because it takes the form of either a threat or a promise, whether explicit or implied. ICICI Group has a Gender Neutral Policy that prohibits unwelcome advances, requests for sexual favours, or other verbal or physical conduct where such conduct has the purpose or effect of unreasonably interfering with an individuals work performance or creating an intimidating, hostile or offensive working environment.

Safety in the Workplace

ICICI Group considers safety of employees as the primary concern. ICICI Group is committed to safety of employees and expects its businesses and employees to comply fully with appropriate laws and internal regulations. ICICI Group encourages responsible behaviour of its employees and colleagues that result in the best possible accident prevention measures. This applies both to the technical

planning of workplaces, equipment, and processes and to safety management and personal behaviour in everyday workplace. Your work environment, therefore, must conform to the requirements of health oriented safety design and you must constantly be attentive to safety principles.

PLANNING They have a team of people who do scenario planning and stress testing. that important for any bank but one cant just leave every thing to the process because things are changing every day one day they might see something that happens to other bank and think that could happen to them. so the team is called and they brainstrom, discuss. so theres an institutionalized process, but also constant on the fly process that's much less structured. ORGANISING We believe that the structure of an organization needs to be dynamic, constantly evolving and responsive to changes both in the external and internal environments. Our organizational structure is designed to support our business goals, and is flexible while at the same time ensuring effective control and supervision and consistency in standards across business groups. The organization structure is divided into five principal groups Retail Banking, Wholesale Banking, Project Finance & Special Assets Management, International Business and Corporate Centre. The Retail Banking Group comprises ICICI Banks retail assets business including various retail credit products, retail liabilities (including our own deposit accounts as well as distribution of third part liability products) and rural micro-banking. The Wholesale Banking Group comprises ICICI Banks corporate banking business including credit products and banking services, with separate dedicated groups for large corporates, Government and public sector entities and emerging corporates. Treasury, structured finance and credit portfolio management also form part of this group.

Leading and controlling


On two occasions once in 2003 and then again in 2008 they had managed situations where customers were questioning their soundness and the bank saw abnormal deposit withdrawals. In 2008, when the global financial crisis hit, people started saying, ICICI is a global bank, so if something is going wrong with the global economy, it will go wrong with ICICI. And the only way to cope with that was for them to get into every little detail. they have set up a control room, and the CEO was asking very specific questions. What is our strategy for small depositors who come to the branches? How will we communicate with our employees? How are we handling the regulators, the large investors, the media?

There were also the operational things. They had to figure out how much cash they needed to make available in each branch and ATM to make sure to dont run out if people wanted to make withdrawals. And that meant getting into very precise mathematical calculations. If at every ATM everybody were to do a transaction every three minutes and this is the average amount of cash they would withdraw, what is the cash we would need on a daily basis? How do we move all that money physically from our cash chest and get it into the ATMshow many trucks will we need? Then they had to think through dealing with the media. What are the 25 questions we might be asked and how should we answer them? And they had to remind themselves to be patient because every media person was going to ask the same 20 questions over and over again. They went to there branch managers with detailed instructions, saying not just that these are the answers you should give but reminding them that when customers come, managers should be relaxed, ask them to sit, and offer them a glass of water first, before even starting to talk with them. They felt it was really important that managers not seem stressed or confused but project an aura of confidence and composure, so they could give that confidence to the customers. And they was deeply involved in all those issues and succeded . These are times when the leader must be prepared to get into that level of detail on execution.

CHALLENGES FACED BY ICICI BANK


1) RURAL MARKET(ICICI BANK IS COFINED TO ONLY URBAN ) ICICI is generally fairly mature in terms of supply, product range and reach, even though reach in rural India still remains a challenge for the private sector and foreign banks. 2) Management of Risks The growing competition increases the competitiveness among banks. But, existing global banking scenario is seriously posing threats for ICICI, as we have already witnessed the bankruptcy of some foreign banks. 3) Growth in banking It was found in the study of Goyal and Joshi (2011) that small and local banks face difficulty in bearing the impact of global economy therefore, they need support and it is one of the reasons merger. Some private banks used mergers as a strategic tool for expanding their horizons. There is huge potential in rural markets of India, which is not yet explored by the major banks. Therefore ICICI Bank Ltd. has used mergers as their expansion strategy in rural market. They are

successful in making their presence in rural India. It strengthens their network across geographical boundary, improves customer base and market share

4) Global Banking It is practically and fundamentally impossible for any nation to exclude itself from world economy. Therefore, for sustainable development, one has to adopt integration process in the form of liberalization and globalization as India spread the red carpet for foreign firms in 1991. The impact of globalization becomes challenges for the domestic enterprises as they are bound to compete with global players.

5) Employees Retention Employees satisfaction is most important for any organization success. As banking industry has transformed rapidly in the last ten years, shifting from transactional and customer serviceoriented to an increasingly aggressive environment, where competition for revenue is on top priority. Therefore ICICI have also have to transform there organizational structure which will effect the employees Long-time banking employees are becoming disenchanted with the industry and are often resistant to perform up to new expectations. The diminishing employee morale results in decreased revenue.

6) Customer Retention This is the most important challenge .as the customer is god for any organization. They identified the determinants which include service quality dimensions (e.g. getting it right the first time), service features (e.g. competitive interest rates), service problems, service recovery and products used. It was found, in particular, that service problems and the banks service recovery ability have a major impact on customer satisfaction and intentions to switch 7) Social and Ethical Aspects There are some banks, which proactively undertake the responsibility to bear the social and ethical aspects of banking. This is a challenge for commercial banks to consider the these aspects in their working. Apart from profit maximization, commercial banks are supposed to support those organizations, which have some social concerns.

Type

ICICI BANK Private


it is the second largest bank in India by assets and third largest by market

HDFC BANK Public


It is the fifth largest bank in India by assets and the largest bank by market capitalisation

SBI BANK Public


it the largest bank in India by assets.

Founded Revenue

capitalisation 1954 US $13.52


billion (2012)

August 1994 US $ 6.487 billion (2012)

1 July 1955 US $ 36.950


billion (2011)

Branches

3,350 branches and 10,486 ATM's in India, and has a presence in 19 countries.

HDFC Bank has 3,119 branches and 11,088 ATMs, in 1,891 cities in India.

15,003 branches, including 157 foreign offices.

Key people

Ms.Chanda Kochhar (MD & CEO)

Mr Aditya Puri (MD)

Pratip Chaudhuri