Share Certificates of the Reserve Bank of India

ICICI
BANK
History
The
Industrial
Credit and

The Reserve Bank of India was set up as a Share Holders' Bank. The Share
Issue of the Bank offered in March, 1935 was the largest share issue in India
at the time. The matter was further compounded by the conditions and
restrictions imposed under the Act. These conditions related to qualifications
of the shareholders, the geographical distribution and allotment of shares (to
avoid concentration of shares and to ensure that those holding the shares
were fit and proper. To simplify matters, Share Certificate Forms of the
different registers were printed in different colours. Despite the intricate and
gigantic nature of the task, it was carried out with great 'accuracy and
dispatch'.

7 Major Functions of the Reserve Bank of IndiaMajor functions of the RBI

are as follows:
1. Issue of Bank Notes:
The Reserve Bank of India has the sole right to issue currency notes except one rupee notes
which are issued by the Ministry of Finance. Currency notes issued by the Reserve Bank are
declared unlimited legal tender throughout the country.
This concentration of notes issue function with the Reserve Bank has a number of advantages: (i)
it brings uniformity in notes issue; (ii) it makes possible effective state supervision; (iii) it is
easier to control and regulate credit in accordance with the requirements in the economy; and (iv)
it keeps faith of the public in the paper currency.
2. Banker to Government:

Investment Corporation of India was registered as a private limited company in 1955. It was set
up as a private sector development bank to assist and promote private industrial concerns in the
country. ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial
institution, and was its wholly-owned subsidiary. ICICI's shareholding in ICICI Bank was
reduced to 46% through a public offering of shares in India in fiscal 1998, an equity offering in
the form of ADRs listed on the NYSE in fiscal 2000, ICICI Bank's acquisition of Bank of
Madura Limited in an all-stock amalgamation in fiscal 2001, and secondary market sales by
ICICI to institutional investors in fiscal 2001 and fiscal 2002. ICICI was formed in 1955 at the
initiative of the World Bank, the Government of India and representatives of Indian industry. The
principal objective was to create a development financial institution for providing medium-term
and long-term project financing to Indian businesses.

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

After consideration of various corporate structuring alternatives in the context of the emerging
competitive scenario in the Indian banking industry, and the move towards universal banking, the
managements of ICICI and ICICI Bank formed the view that the merger of ICICI with ICICI
Bank would be the optimal strategic alternative for both entities, and would create the optimal
legal structure for the ICICI group's universal banking strategy. The merger would enhance value
for ICICI shareholders through the merged entity's access to low-cost deposits, greater
opportunities for earning fee-based income and the ability to participate in the payments system
and provide 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.

ICICI Bank has formulated a Code of Business Conduct and Ethics for its directors and
employees.

Broad objectives of the ICICI are:

(a) to assist in the creation, expansion and modernisation of private concerns;
(b) to encourage the participation of internal and external capital in the private concerns;
(c) to encourage private ownership of industrial investment.
What are the functions of the ICICI?
(i) It provides long-term and medium-term loans in rupees and foreign currencies.
(ii) It participates L* the equity capital of the industrial concerns.
(iii) It underwrites new issues of shares and debentures.
(iv) It guarantees loans raised by private concerns from other sources.
(v) It provides technical,managerial and administrative assistance to industrial concerns.
Capital Initially:
The Corporation started with the authorised capital of Rs. 25 crore. At the end of June 1986, the
authorised capital was Rs. 100 crore and the paid-up capital was 49.5 crore. Various sources of
financial resources of the Corporation are Indian banks, insurance companies and foreign
institutions, including the world Bank, and the public. The government and the IDBI have also
provided loans to the Corporation.
Financial Assistance:
The performance of the ICICI in the field of financial assistance provided to the industrial
concerns has been quite satisfactory. Over the years, the assistance sanctioned by the Corporation
has grown from Rs.14.8 crore in 1961-62 to Rs. 43.0 crore in 1970-71 and Rs. 36229 crore in
2001-02. Similarly the amount disbursed has increased from Rs.8.6 crore in 1961-62 to Rs.29.8
crore in 1970-71 and to Rs. 25831 in 2001-02. Cumulatively, at the end of March 1996, the
ICICI has sanctioned and disbursed financial assistance aggregating Rs. 66169 crore and Rs.
36591 crore respectively.

What are the features of ICICI?

The important features of the functioning of the ICICI arc as given below:
(i) The financial assistance as provided by the ICICI includes rupee loans, foreign currency
loans, guarantees, underwriting of shares and debentures, and direct subscription to shares and
debentures.
(ii) Originally, the ICICI was established to provide financial assistance to industrial concerns in
the private sector. But, recently, its scope has been widened by including industrial concerns in
the public, joint and cooperative sectors.
(iii) ICICI has been providing special attention to financing riskier and non-traditional industries,
such as chemicals, petrochemicals, heavy engineering and metal products. These four categories
of industries have accounted for more than half of the total assistance.
(iv) Of late, the ICICI has also been providing assistance to the small scale industries and the
projects in backward areas.
(v) Along with other financial institutions, the ICICI has actively participated in conducting
surveys to examine industrial potential in various states.
(vi) In 1977, the ICICI promoted the Housing Development Finance Corporation Ltd. to grant
term loans for the construction and purchase of residential houses.
(vii) Since 1983, the ICICI has been providing leasing assistance for computerisation,
modernisation and replacement schemes; for energy conservate; for export orientation; for
pollution controller balancing and expansion: etc.
(viii) The ICICI has not contributed much to reduce regional disparities. About three-fifth of the
total assistance given by the ICICI has been received by the advanced states of Maharashtra,
Gujrat and Tamil Nadu.
(ix) With effect from April 1, 1996, Shipping Credit and Investment company of India ltd,
(SCICI) was merged with ICICI.
(x) The ICICI Ltd. was merged with ICICI Bank Ltd. effective from May 3, 2002.
Capital management
Objective The Bank actively manages its capital to meet regulatory norms and current and future
business needs considering the risks in its businesses, expectation of rating agencies,
shareholders and investors, and the available options of raising capital.

Organisational set-up The capital management framework of the Bank is administered by the
Finance Group and the Risk Management Group (RMG) under the supervision of the Board and
the Risk Committee.
Internal assessment of capital The Banks capital management framework includes a
comprehensive internal capital adequacy assessment process (ICAAP) conducted annually which
determines the adequate level of capitalisation for the Bank to meet regulatory norms and current
and future business needs, including under stress scenarios. The ICAAP is formulated at both
standalone bank level and the consolidated group level. The ICAAP encompasses capital
planning for a four year time horizon, identification and measurement of material risks and the
relationship between risk and capital. The capital management framework is complemented by
the risk management framework, which includes a comprehensive assessment of material risks.
Based on the ICAAP, the Bank determines the level of capital that needs to be maintained by
considering the following in an integrated manner:
Banks strategic focus, business plan and growth objectives;
regulatory capital requirements as per the RBI guidelines;
assessment of material risks and impact of stress testing;
perception of credit rating agencies, shareholders and investors;
future strategy with regard to investments or divestments in subsidiaries; and
evaluation of options to raise capital from domestic and overseas markets, as
permitted by RBI from time to time.
Monitoring and reporting The Board of Directors of ICICI Bank maintains an active oversight
over the Banks capital adequacy levels. On a quarterly basis an analysis of the capital adequacy
position and the risk weighted assets and an assessment of the various aspects of Basel III on
capital and risk management as stipulated by RBI, are reported to the Board. Further, the capital
adequacy position of the banking subsidiaries and the significant non-banking subsidiaries based
on the respective host regulatory requirements is also reported to the Board. In line with the RBI
requirements for consolidated prudential report, the capital adequacy position of the ICICI Group
(consolidated) is reported to the Board on a quarterly basis.
Capital adequacy of the subsidiaries Each subsidiary in the Group assesses
the adequate level of capitalisation required to meet its respective host
regulatory requirements and business needs. The Board of each subsidiary

maintains oversight over the capital adequacy framework for the subsidiary
either directly or through separately constituted committees.

ROLE IN CAPITAL MARKET

Capital Markets
ICICI Bank is an active capital market intermediary. It is one of the promoters of several leading
institutions in the country including National Stock Exchange Of India Limited (NSE), National
Commodities & Derivatives Exchange Limited (NCDEX), Central Depository Services (India)
Limited (CDSL). Since 2000, the Bank has also been one of the clearing and settlement banks
for NSE and Bombay Stock Exchange Limited (BSE). The Bank also took up the clearing and
settlement banking status for NCDEX in FY 2004 and has recently got the clearing and
settlement banking status on the Multi Commodity Exchange of India Limited (MCX) and Spot
Exchanges.

Primary Markets
Collecting Bankers We are the leading collecting bankers (market leader) to Public/ Rights/
Private Placement/ Mutual Funds/ Capital Gains Bonds issues. ICICI Bank is the only Bank to
cross Rs. 1 trillion Collection. We are the market leader in IPO Collection with a 34% share and
65% market share in Retail and HNI Segment.

Escrow and Paying Bankers We act as escrow and paying bankers to Mergers and Acquisitions.
Secondary Markets
As mentioned above, ICICI Bank acts as a 'clearing and settlement' banker for members of NSE,
BSE, NCDEX, MCX and Spot Exchange. ICICI Bank also offers following products/services:

Cash Management Services

NRI accounts

Payment gateway

Portfolio management services accounts

Supply Chain Management Account

Corporate Internet Banking

Clearing and settlement banker The Bank is the leading Clearing and Settlement Bank for The
National Stock Exchange of India (NSE) and The Bombay Stock Exchange (BSE), and offers a
range of products and services in the capital markets. It is also a Clearing and Settlement Bank
for other Exchanges in India namely The National Commodity and Derivatives Exchange
(NCDEX), The Multi-Commodity Exchange (MCX) and Spot Exchange of India.

Bank guarantees The Bank issues bank guarantees to brokers on both the Capital Market and
Commodity Market segment favoring the NSE/ BSE/ NCDEX/ MCX/ Spot Exchange to meet
Security Deposit/ Base Capital and Margin requirements of the exchanges and Professional
Clearing for trading members clearing their trades through them.

Secured Overdraft To meet working capital requirements of the brokers on the Capital Market
segment, the Bank provides after thorough credit appraisal secured overdraft in the form of
overdraft against shares.

Intra-day funding Intra-day Funding is done at the Bank's discretion to meet Exchange
obligations (against cheques deposited in clearing or payouts to be received from the other
exchanges) and client.

IDBI BANK
HISTORY
Industrial Development Bank of India (IDBI Bank) is today one of Indias largest commercial
Banks. For over 40 years, IDBI Bank has essayed a key nationbuilding role, first as the apex
Development Financial Institution (DFI) (July 1, 1964 to September 30, 2004) in the realm of
industry and thereafter as a fullservice commercial Bank (October 1, 2004 onwards). As a DFI,
the erstwhile IDBI stretched its canvas beyond mere project financing to cover an array of
services that contributed towards balanced geographical spread of industries, development of

identified backward areas, emergence of a new spirit of enterprise and evolution of a deep and
vibrant capital market.
On October 1, 2004, the erstwhile IDBI was converted into a Banking company (as Industrial
Development Bank of India Limited) to undertake the entire gamut of Banking activities while
continuing to play its secular DFI role. Post the mergers of the erstwhile the bank with its parent
company (IDBI Ltd.) on April 2, 2005 (appointed date: October 1, 2004) and the subsequent
merger of the erstwhile United Western Bank with IDBI Bank on October 3, 2006, the tech
savvy, new generation Bank with majority Government shareholding today touches the lives of
millions of Indians through an array of corporate, retail, SME and Agri products and services.
Headquartered in Mumbai, IDBI Bank today rides on the back of a robust business strategy, a
highly competent and dedicated workforce and a stateoftheart information technology
platform, to structure and deliver personalized and innovative Banking services and customized
financial solutions to its clients across various delivery channels.

Services

Retail banking: It provides a wide range of products and services like deposits, loans,
NRI services, demat, pension account, mobile banking, internet banking, investment schemes
such as mutual fund, insurance products, bonds, debentures etc.

Corporate banking: It provides corporates project finance, film finance, foreign

currency loan, working capital finance, treasury products, etc.

Agri business and microfinance: It provides finance to agri businesses in the form of
dairy loans, farm mechanization loans, financing for fisheries, poultry, piggery, warehouse
receipt finance, etc.

SME: IDBI Bank also offers products and services to SME sector.
Subsidiaries of the bank

IDBI Capital Markets

IDBI Intech

IDBI Asset Management

Milestones and Recognition

IDBIs long term foreign currency debt was given Baa2 rating by Moodys reflecting
strong government ownership and control.

IDBI Bank was assigned BBB rating by Standard's & Poor and Fitch, which represents
strong market position.

IDBIs longterm bonds, fixed deposits and shortterm borrowing are rated by CRISIL,
ICRA and Fitch, reflecting high safety in respect to timely payment of interest and principal.

2010
IDBI Bank launches Portfolio Investment Scheme (PIS)2011
IDBI Bank Launches Aadhaar Enrolment in Bihar
IDBI Bank Launches Aadhaar Enrolment in Kerala
IDBI Bank Launches Aadhaar Enrolment in Chennai
IDBI Bank Ltd. Awarded the ISO 9001: 2008 Certification for its Customer Care Centre and
InHouse Journal.
IDBI Bank Wins the Dun & Bradstreet Banking Awards 2011 for Best Bank & Best Public
Sector Bank.
IDBI Bank launches Being Me Savings Account For the Youth on International Youth Day.
IDBI Bank Launches Magic Card.

2012
IDBI Bank Launches Urban Financial Inclusion Programme at Dhobi Ghat
IDBI Bank Launches Kisan Credit Smart Card
IDBI Bank Receives Greentech CSR Award
IDBI Bank launches Floating Rate Interest on Retail Term Deposit (FRTD)
IDBI Bank launches IDBI Samriddhi CD Portal
IDBI Bank Launches 24*7 Loan Monitoring System for its Retail and Corporate Clients
IDBI Bank Launches MSE Focused Branch in Jalandhar.
IDBI Bank launches India's first online Retail GSec Portal.

CAPITAL AND MANAGMENT

IDBI Capital Market Services Ltd. (ICMS) is a leading Fund Manager in the country for
Provident, Pension and Retirement Benefit Funds. The Company is a SEBI registered
Portfolio Manager and manage its Clients assets under both discretionary and nondiscretionary mandates. These services are provided to various public and private sector
undertakings and their provident, pension, retirement benefit and surplus funds. The
Companys client base includes leading pension and provident funds in the country.
IDBI capital has been advising institutions, banks and corporates for their investment in
Debt, Mutual Funds and Equities over several years. Its services include managing Client
Assets--Pension & Provident Funds, Surplus fund Management, Equity Portfolio
Management
and
Mutual
Fund
Advisory.
The funds have continuously yielded superior returns, which are significantly higher than
the
benchmark.

ISO Certification 9001:2000

Keeping in view the importance of standardized processes and service levels, the
Company has gone in for ISO Certification for Fund Management, and is the only
company to have done so in this sector. Being a public sector, the Company is also
audited by Comptroller and Auditor General (CAG) office and follows transparent
practices.
Regulatory
Approval
IDBI Capital is a registered Portfolio Manager with Securities and Exchange Board of
India (SEBI) since 1998 and is authorised to undertake Funds Management activities
(Debt & Equity) for clients. These activities would be governed by Securities and
Exchange Board of India (Portfolio Managers) Rules and Regulations, 1993. SEBI
Regisration
No.
of
IDBI
Capital
is
INP000000209
The Key strengths of IDBI capital Market Services in the areas of Debt Fund
Management are:
1. Fund Management experience of 10 years
2. Expertise in managing large corpus
3. Expertise in both Debt & Equity Market
4. IDBI Capital is the only Portfolio Manager in the Country to achieve ISO 9001:
2000 Standard for Quality Management Systems in Fund Management
operations, with certification from TUV NORD an accredited German standards
firm
5. Substantial Returns Over Benchmark
6. IDBI Capital is a SEBI registered Portfolio Manager
7. Minimum Idle Days
8. Our fund management skill covers Portfolio Analysis that includes ALM, Asset
Allocation, Risk Analysis, Maturity Analysis and Yield Analysis
9. Transparency of Operations
10. Strict adherence to Compliance Procedures

11. Highly Rated Debt Research

12. Presence in All Segment/ Asset of the Financial Services: IDBI Capital deals in
Equity and Equity related products and is one of the highly rated Mutual Fund
Distributor (won two consecutive CNBC TV18 Institutional Financial Advisor
Award). In Investment Banking and Debt Capital Market- Rated in Top 15 by
Prime Database
13. Group Strength in Debt Market: IDBI Capital is one of the leading players in debt
market with presence in primary dealership since July 2007. The current
operations of primary dealership is conducted by a group company, IDBI Gilts
Infrastructure

Experienced Fund Management Team: The Fund Management team comprises

of experienced professionals (experience ranges between 2 years to 15 years) in
Portfolio Management with requisite exposure in the fixed income and equity
segment and qualifications

Experienced Back-Office: The Clearing and Settlement Operations are manned

by experienced personnel with requisite exposure to capital market and
particularly debt market. The process is standardized as per the regulatory and
other specific norms and mainly technology driven in most areas

Accounting: Real time accounting of Remittances, Investments, Interest and

Redemption proceeds ensures accurate reconciliation

Professional Custodian: Member of NSDL for demat services and offers

Constituent SGL Account facility for Government securities through IDBI Gilts
Ltd.

Functional Separation of Front and Back Office: Separate personnel handle

the front and back office functions to ensure transparency and complete
regulatory compliance

Internal Controls: Adequate Risk Management systems in place to ensure

complete regulatory compliance

Audit Systems: Audit of all transactions and reports by an independent firm of

chartered accountants. The accounts and transactions are also subject to CAG
audit and other regulators

Belongs to IDBI Group: IDBI is a leading bank, classified under Other Public
Sector Bank. Established in 1964 by Government of India under an Act of

Parliament, IDBI has essayed a significant role in the countrys industrial and
economic progress for over 40 years first as apex Development Financial
Institution (DFI) and now as a full service commercial bank

2013
IDBI Bank Introduces Digital Signature based authentication for Corporate Inet Banking
Channel
IDBI Bank introduces online PPF Subscription Facility
IDBI Bank establishes inland Letter of Credits (LCs) through Structured Financial Messaging
System (SFMS) and introduces issuance of BRC in electronic form.
2014
IDBI Bank wins the 3rd Annual Greentech CSR Award for the year 2013
IDBI Bank Wins the Golden Peacock CSR Award for the year 2013
IDBI Bank Launches Kiosk Banking Solution under Financial Inclusion and donated Solar lamps to Chinchvali
Gram Panchayat under CSR.