ICICI Bank (formerly Industrial Credit and Investment Corporation of India) is India's largest private sector bank and second largest overall in terms of assets. Together with its subsidiaries, the Bank has a network of 1,416 branches and about 4,644 ATMs in India ICICI Bank is India's second-largest bank. The Bank has a network of about 1,416 branches and extension counters and over 4,644 ATMs and presence in 18 countries. ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution and was it wholly-owned subsidiary.

ICICI was formed in 1955 at the initiative of the World Bank, the Government of India and representatives of Indian industry. The 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. In 2001, ICICI bank acquired Bank of Madura Limited. 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 has total assets of Rs. 3,849.70 billion (US$ 82 billion) at September 30, 2008 and profit after tax Rs. 17.42 billion for the half year ended September 30, 2008 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 Bombay Stock Exchange and the National Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE).


History and Formation:
The World Bank, the Government of India and representatives of Indian industry form ICICI Limited, as a development finance institution, provided medium-term and long-term project financing to Indian businesses in 1955.

ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution, and was its whollyowned 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.


Brief About the Company
ICICI Bank Limited, together with its subsidiaries, offers various banking products and financial services in the areas of commercial banking, investment banking, and insurance to retail and corporate customers primarily in India. The company offers various deposit products, which include time deposits, savings accounts, current accounts, and certificates of deposits. Its loan portfolio includes home loans, automobile loans, commercial business loans, two wheeler loans, personal loans, agricultural loans, working capital loans, and credit cards, as they will offers dealer funding, and technology and developer financing products and services. ICICI Bank also offers various agricultural and rural banking products, including loans for crop production, micro-finance, and purchase of farm equipment, as they’ll as offers commodity based finance, and various savings, investment, and insurance products.


ICICI offers a wide range of banking products and financial services to corporate and retail customers through its specialized subsidiaries and affiliates are in the areas of investment banking, life and non-life insurance, venture capital and asset management.

Knowledge management theory adapted by ICICI bank:
ICICI Bank’s knowledge management (KM) strategy was established in 2000. Back then, the company was very much smaller than it is now – just 1,200 staff compared to the 30,000 that works for ICICI Bank today. However, the program was started at a time when the company’s growth was starting to go into overdrive. Initially, the organization developed a broad technology-linked infrastructure, including a corporate intranet, ICICI Universe, intended to provide a platform where, for instance, employees could check the human resources (HR) system for vacation entitlements, book days off or view their personal pension details.


By putting these simple, but necessary activities on the intranet, it encouraged employees to get familiar with using the yb-based applications, to overcome any fear of technology as they’ll as providing them with a good reason for using the portal on a regular basis. What began more as an idea and less as a project was simply the belief that staff should have a space on the intranet where they could participate in collaborative activities, such as contribute or find documents, engage in discussions and post or another queries. That idea, in essence, first converted the bank to KM. Initially, the organization was motivated to act due to the upheaval caused by the tail-end of the dot-com boom, which was depriving the bank of many good staff as they left in significant numbers to join dot-com start-ups – taking their knowledge and know-how with them. Hence they developed Wise Guy; ICICI’s KM intranet portal – easily accessible from the main staff portal – to provide a way of capturing and disseminating the knowledge of departing staff. To develop Wise Guy, a team was put together encompassing KM, HR, technology and research with a brief to ‘just do it’. Indeed they did and a beta version was ready within just three months. Before the year was out, faced with the prospect of a reverse merger of ICICI Bank with its parent ICICI, which was through in 2002, the KM team had to restructure to meet the needs of the new corporate entity. Some issues articulated at the time included: 1. How to connect this vast new pool of employees with each other; 2. How to share business-related information about clients, deals and ideas; 3. How to manage staff through the change process via communication, messages, channels and so on; 4. How to overcome the problems caused by staff turnover; 5. How to ensure that every person in the company is adequately equipped with the skills and training required for their jobs and for lifelong learning and development.


The deeper question was, quite simply, how do they create a hunger among staff to acquire and share knowledge? That is to say, how to create the culture? The aim was to ensure that employees stayed permanently aware of the external competitive challenges of the business, and to persuade them to remain constantly open to new thoughts, ideas and ways of working. Satisfied users In their view, employee satisfaction drives usage and they wanted to use this as the delivery vehicle to support three major information-handling behaviors: sharing, collaboration and self-help. In essence, the workplace was no longer just a physical location. It had become a blend of physical and virtual spaces in which work is undertaken. The KM program is now deeply embedded in the bank, but not as a result of any directive from top management. Employees work with the KM program because they see its benefits and realise the value it brings to them on a day-today basis. This is what makes it vibrant and engaging. It is significant that a small project originally designed for about 1,200 employees in few locations has been flexible and scalable enough to cater for more than 30,000 employees in more than 600 locations, most of whom are customer-facing staff. Everything they need should be at their fingertips, whether getting an answer to a problem, checking a policy or accessing standard templates and formats such as letters, agreements or guidelines. The importance of scalability cannot be underestimated. In 2005, usage increased more than six times compared to the year before and the portal marked a record one-million logins in November 2004 after the site was redesigned. The number of staff using the KM portal doubled in the same period. On average today, about 6,000 users visit the site daily, of which 95 per cent came from ICICI Bank’s retail branches. The Wise Guy KM portal also encompasses a variety of sections including: document management; news inside and outside the organization; digital resources such as trade and news journals, research reports, maps, directories, currency


and time calculators; information on the various business groups and group companies, complete employee information; and, interactive sections such as discussion forums, query boards, book reviews, online quizzes, the rewards and recognition scheme, and so on. Wise Wednesdays Early on, they realized that several senior people they were reluctant to type and post submissions to the portal. So they invited them to share their tacit knowledge in an informal manner and the Wise Guy Knowledge Leader Series (KLS) was born. Guest speakers included experts on various topics, such as advanced finance, and internal business heads who were delighted to be invited and were willing to give it a try. KLS evolved to include even chief the financial officers and CEOs of renowned companies in India, who spoke on the topics of leadership and strategy. In another experiment, they set aside some time once a week for a knowledge café in the canteen of their Mumbai headquarters. Similarly, they tried a variety of other formats, including informal ‘brown bag’ concepts, in which staff would be invited to bring their lunch along to a presentation on a particular subject by a notable individual, to web conferences and live webcasts, so that any user in any location could participate. KLS encouraged face-to-face, live interaction and KM was therefore not seen purely as a portal activity. Not all of these were successful. For example, their knowledge cafes had to be abandoned because the noise in the canteen proved too distracting, while some of their speakers for the brown-bag presentations felt offended that staff were tucking into their lunches while they were presenting about weighty topics. Corporate learning The ability to learn across the group and from team mates is a very powerful tool. They aim to build a learning environment by encouraging collaboration and push mechanisms, including a webzine e-mail to every employee before 9.30am. The Daily Dose, as it is called, is a summary of what is new in the outside world and on the portal. It


features headlines, opinions, polls, happenings, customer appreciations, newsletters and other regular updates. Again, one of the main benefits of the Daily Dose is the high profile it lends to their various KM initiatives. When they polled staff, almost 97 per cent said that The Daily Dose represents an important part of their working day. By delivering it direct to their mailbox, it helps the KM team to capture the ‘mind space’ of employees as soon as they sit down to work in the morning. Other tools they use include Newsroom, a space on the intranet where daily news headlines are published. Here, staff can look up all the newsletters published by internal business groups, media releases, as they’ll as tracking what their competitors are up to. Then there are ‘K-mailers’, which are short, one-page reviews on any one of 33 topics in six categories; internal newsletters from various domain specialists; online quizzes; ‘word poor’ articles or glossaries; training modules; and, a whole library of online research tools. Query Board, a central, interactive frequently asked questions repository by and for staff, is where they can post any work-related queries, such as the number of cheques that can be deposited at any one time, customer credit questions, cheque returns and so on. Indeed, anything work-related that demands authoritative responses from colleagues and in-house experts. It serves as the fastest and most reliable source for feedback on queries or doubts related to workplace rules, policies and procedures, technical know-how and much more. Remarkably, the average response time to a query ranges from five to 15 minutes, but never more than one day from the time the query was posted. In addition to Query Board, they also offer a more general discussion forum on the intranet where staff can talk about finance, business and economy-related topics. Discussions on their forum revolve around topics highly relevant to the work in the bank, such as the automatic cheque book reorders system and solutions for detecting fake bank notes. .


Technology platforms Much of what is deployed to support their various KM initiatives is custom-developed, but the tools are supported on a variety of standard hardware and software platforms, particularly Microsoft Windows, Linux, Microsoft Office, OpenOffice (the open-source alternative to Microsoft Office), and a host of other off-the-shelf and custom applications. Implementation was eased by the fact that it was not one single mega project, but a combination of many experiments and modular launches. This means that they nurtured what worked and discarded along the way any elements that plainly did not work. One early project was a ‘Yellow Pages’-style directory for the entire corporate group. These, of course, are quite common KM tools, helping put staff in direct contact with one another. The result, Peoplefinder, is the experts’ directory that employees use to locate others and update their own profile with interests, areas of expertise where they can help colleagues and other relevant information. Creating it was like opening the doors and windows in a dusty house shut for many months as people who did not even know who was sitting on the same floor as them suddenly got ‘connected’ and it continues to be one of the most-used sections. Many implementations began as line-of-business pilots. ‘At your Service’ is one such example in which employees who are also customers of the bank can talk directly with the product and process teams for personal banking issues. With a back-end plug-in to the call centre it serves the dual purpose of learning while solving problems. It was so effective that it was replicated for other teams too. Compliance, quality and customer service In 2002, the bank launched its quality program to achieve the relevant certification levels throughout the organisation. Naturally, KM’s role was to support the quality team and they did this by building a KM mini-portal on quality. This quality ‘portlet’ maintains the background material, documents on Six Sigma methodology, international quality standards, certifications and everything else that relates to the organisation’s endeavors in maintaining quality levels.


Staff can also post and respond to queries and interact with the quality experts. KM tools and techniques are also deployed so that customerservice teams and those staff who deal directly with the public can share almost everything related to customer complaints and service quality issues, from branch and customer satisfaction with cash machines, to standard templates, letters, tools, to recognising and celebrating customer satisfaction benchmarks and people who have achieved it. The various activities, contributions and postings help spread the good practices throughout the bank. Of course, banks today have to deal with growing regulatory demands, including circulars and notices from the regulatory authorities that must be followed to the letter. They therefore created E-Circulars to inform and educate staff on regulatory and compliance matters. It is used by designated senior managers who have a duty to inform employees on guidelines issued by various regulatory authorities as they affect the bank’s policies, products and processes. It is not all one-way. Recipients can also be tested with four or five key questions to ensure that they broadly understand the content.


Performance upraisel and motivation techniques adopted by ICICI:
The following are the techniques adopted by ICICI bank for performance upraisel

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When a new employee is hired or when new standards are adopted, supervisors amend job descriptions and performance evaluation forms and copies are given to all affected employees. They document all performance problems regularly on appropriate appraisal or progressive discipline forms and provide the employee with a copy immediately. They provide employees with relevant feedback. They promptly evaluate nonproductive employees. They give the employee an opportunity to comment on or dispute the performance appraisal. This helps support the fact that you provided the employee with notice. They train supervisors how to evaluate employee performance and how to administer the company's appraisal system. They establish a review audit system to prevent manager bias or personal feelings from impacting on the appraisal. They develop written policy statements approving only a specified procedure for conducting appraisals.


ICICI Bank has grown six-fold since its KM strategy was established in 2000, making it the second biggest in India today and that strategy has been robust enough to grow with it. Today, 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 specialised subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital and asset management and is known as one of the leading and successful bank in the world.


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