INDUSTRIAL EXPOSUR\E PROJECT

On

“ICICI”

Submitted in Partial Fulfillment of the requirements for the Award of Degree of Bachelor
of Business Administration (BBA)

2015-2018
Submitted by: VINEET Under the guidance Of: MR. SHAKTI SHARMA

BHARATI VIDYAPEETH UNIVERSITY

SCHOOL OF DISTANCE EDUCATION,

Academic Study Center – BVIMR, New Delhi

(A Constituent Unit of Bharatiya Vidyapeeth University, Pune)

An ISO 9001:2000 Certified Institute

NAAC Re-Accreditation Grade “A” University

 ACKNOWLEDGMENT

Project report inculcates applied elementary creative thinking/working. In fact the

project report is an of learning. This learning has many contours and impacts. I
wish to express my deepest gratitude to DR A.R Deshmukh made this project
possible. I would like to express my profound sense of gratitude to the project
guide Mr. Shakti Sharma for guiding me as well as providing me the support to
conduct this project. Also I am indebted to all the people without whom co-
operation the project would have not been possible.

Last but not the least, I take this opportunity to thank all the library members of
BVIMR, New Delhi, respondents, friends, and my parents without their concern
and cooperation this project would have not been possible.

NAME OF THE STUDENT :- Vineet Rohilla

 DECLARATION

This is to certify that I have completed a Project titled "ICICI ” under the guidance
of Mr. Shakti Sharma in the partial fulfillment of the requirement for the
award of Bachelors of Business Administration of Bharatiya Vidyapeeth
University, New Delhi. This is an original piece of work & I have not submitted it
earlier elsewhere.
CONTENTS:-

CHAPTER 1 : INTRODUCTION TO COMPANY

1.1 NATURE OF BUSINESS

1.2 TYPE AND OWNERSHIP PATTERN
1.3 ORGANIZATIONAL STRUCTURE
1.4 PRODUCTION LAYOUT
1.5 ORGANIZATIONAL POLICIES

CHAPTER 2 : INDUSTRIAL ANALYSIS

2.1 INDUSTRIAL OVERVIEW

2.2 CURRENT ISSUES
2.3 KEY COMPETITORS
2.4 ENVIRONMENTAL SCANNING
2.5 Porter’s Five Forces Model of Competition

CHAPTER 3 : MARKETING ANALYSIS

3.1 PRODUCTS OF THE COMPANY

3.2 4 P’s
3.3 SEGMENTATION, TARGETING, POSITIONING
 3.4 DISTRIBUTION CHANNELS
3.5 PROMOTIONAL STRATEGIES

CHAPTER 4 : FINANCIAL ANALYSIS

4.1 SOURCES OF FINANCE

4.2 RATIO ANALYSIS
4.3 NET PROFIT

CHAPTER 5 : KEY LEARNING FROM THE COMPANY AND

RECOMMENDATION

5.1 PERFORMANCE ANALYSIS OF THE COMPANY

5.2 REASONS FOR THE EXPANSION OF THE COMPANY
5.3 COMMENT ON ORGANIZATIONAL LEADERSHIP
5.4 MARKET SHARE OF THE COMPANY
5.5 SWOT ANALYSIS OF THE COMPANY

CHAPTER 6 : FINDINGS

CHAPTER 7 : CONCLUSIONS AND SUGGETIONS

 INTRODUCTION

ICICI Bank, stands for Industrial Credit and Investment Corporation of India, it is

an Indian multinational banking and financial services company headquartered
in Mumbai, Maharashtra, India, with its registered office in Vadodara. In 2017, it is the third
largest bank in India in terms of assets and fourth in term of market capitalization. It offers a
wide range of banking products and financial services for corporate and retail customers through
a variety of delivery channels and specialized subsidiaries in the areas of investment
banking, life, non-life insurance, venture capital and asset management. The bank has a vast
network of 4,850 branches  and 14,404 ATMs in India, and has a presence in 19 countries
including India.
The bank has subsidiaries in the United Kingdom and Canada; branches in United
States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar, Oman, Dubai International Finance
Centre, China and South Africa;  and representative offices in United Arab Emirates,
Bangladesh, Malaysia and Indonesia. The company's UK subsidiary has also established
branches in Belgium and Germany.
ICICI's shareholding in ICICI Bank was reduced to 46 percent, through a public offering of
shares in India in 1998, followed by an equity offering in the form of American Depositary
Receipts on the NYSE in 2000. ICICI Bank acquired the Bank of Madura Limited in an all-stock
deal in 2001 and sold additional stakes to institutional investors during 2001-02.
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
non-Japan Asia to be listed on the NYSE.
In 2000, ICICI Bank became the first Indian bank to list on the New York Stock Exchange with
its five million American depository shares issue generating a demand book 13 times the offer
size.
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
Ahmadabad in March 2002 and by the High Court of Judicature at Mumbai and the Reserve
Bank of India in April 2002.
In 2008, following the 2008 financial crisis, customers rushed to ICICI ATMs and branches in
some locations due to rumors of adverse financial position of ICICI Bank. The Reserve Bank of
India issued a clarification on the financial strength of ICICI Bank to dispel the rumors.
 CHAPTER – 1
INTRODUCTION TO COMPANY

 Nature of business/History

Supervision and Regulation

      In October 2006, in its midterm review of the Annual Policy Statement for fiscal 2007, the
Reserve Bank of India extended the guideline for full compliance with Basel II. Under the new
time frame, foreign banks operating in India and Indian banks having presence outside India are
required to migrate to the standardized approach for credit risk and the basic indicator approach
for operational risk under Basel II with effect from March 31, 2008. All other scheduled
commercial banks are required to migrate to these approaches under Basel II in alignment with
them, but in any case not later than March 31, 2009.

      In October 2006, in its midterm review of the Annual Policy Statement for fiscal 2007, with a
view to providing further flexibility to authorized dealer banks in seeking access to funds
overseas, the Reserve Bank of India proposed that authorized dealer banks would be allowed to
borrow funds from their overseas branches and correspondent banks up to a limit of 50.0% of
unimpaired Tier I capital or US$ 10.0 million, whichever is higher, as against the earlier overall
limit of 25.0% . However, short-term borrowings up to a period of one year or less would not
exceed 20.0% of unimpaired Tier I capital within the overall limit of 50.0% . All borrowings in
the form of subordinated debt placed by head offices of foreign banks with their branches in
India as Tier II capital, capital funds raised/augmented by issue of innovative perpetual debt
instruments (IPDI) and other overseas borrowing with the specific approval of the Reserve Bank
of India would continue to be outside the limit of 50.0% .

      In April, 2003 Indian banks were permitted to extend credit/non-credit facilities to Indian
Joint Ventures (JVs)/Wholly Owned Subsidiaries (WOS) abroad up to the extent of 10.0% of
their unimpaired capital funds (Tier I and Tier II), subject to certain conditions. In its midterm
review of the Annual Policy Statement announced in October 2006, the Reserve Bank of India
has proposed to enhance the prudential limit on credit and non-credit facilities extended by banks
from the existing 10.0% to 20.0% of unimpaired capital funds of the bank.
      The Reserve Bank of India in a circular dated November 28, 2006, permitted classification of
loans granted to Self Help Groups (SHGs) engaged in agriculture and allied activities as direct
finance to agriculture within the priority sector as long as such disaggregated data on the
SHG/microfinance portfolio is maintained.

      In a recent circular the Reserve Bank of India has limited banks' capital market exposure to
40.0% of their net worth as on March 31 of the previous year on a solo basis. Within this limit
direct investments in shares, convertible bonds/debentures, units of equity oriented mutual funds
and all exposures to venture capital funds have been restricted to 20.0% of their net worth. On a
consolidated basis, the exposure to capital markets has been restricted to 40.0% of the
consolidated net worth as on March 31 of the previous year with direct investments in shares,
convertible bonds/debentures, units of equity oriented mutual funds and all exposures to venture
capital funds restricted to 20.0% of their consolidated net worth.

      The Reserve Bank of India in a press release dated December 8, 2006, increased the Cash
Reserve Ratio (CRR) by 50 bps from 5.0% to 5.5% . The increase is to take place in two stages
of 25 bps each and will be effective as follows:

     December 23, 2006: 5.0% to 5.25%

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
Ahmadabad 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.

 Type & Ownership pattern

Holder's Name No of Shares % Share Holding

Foreign Institutions 2306511100 35.91%

GDR 1549870253 24.13%

NBanks MutualFunds 1105224424 17.21%

Financial Institutions 934489082 14.55%

General Public 346128462 5.39%

Others 170096939 2.65%

CentralGovt 9991566 0.16%

 Type – private company

A privately held company, private company, or close corporation is a

business company owned either by non-governmental organizations or by a relatively small
number of shareholders or company members which does not offer or trade its
company stock(shares) to the general public on the stock market exchanges, but rather the
company's stock is offered, owned and traded or exchanged privately. More ambiguous terms for
a privately held company are unquoted company and unlisted company.
Though less visible than their publicly traded counterparts, private companies have major
importance in the world's economy. In 2008, the 441 largest private companies in the United
States accounted for US$1,800,000,000,000 in revenues and employed 6.2 million people,
according to Forbes. In 2005, using a substantially smaller pool size (22.7%) for comparison, the
339 companies on Forbes' survey of closely held U.S. businesses sold a trillion dollars' worth of
goods and services (44%) and employed 4 million people. In 2004, the Forbes' count of privately
held U.S. businesses with at least $1 billion in revenue was 305.
Cargill, Koch Industries, Bechtel, Publix, Pilot Corp., Deloitte Touché Tohmatsu (a member of
the Big Four group of accounting firms), Hearst Corporation, Cox Enterprises, S. C.
Johnson, McWane, Carlson Companies, and Mars are among the largest privately held
companies in the United States. KPMG, the UK accounting firms Ernst &
Young and PricewaterhouseCoopers, IKEA, Trafigura, J C Bam ford Excavators
(JCB), Lidl, Aldi, LEGO, Bosch, Rolex, Ferrero, Bertelsmann and Victorinox are some
examples of Europe's largest privately held companies. Luxgen is an example of a private
company from Taiwan.
 Organizational structure

 Services Offered
ICICI Bank is one of the largest banks of India. Years of expertise and successful
management has helped it achieve great heights. It has managed to satisfy the needs of its
customers and has proved to be excellent in all the arenas related to financial matters. Be
it an insurance product or an investment or a simple account, ICICI Bank has solutions
for all.
 
Products and Services offered by the bank:
 
The bank takes cares of the financial needs of each and every customer and hence, has
different sections for different group of people, depending upon the requirement, the
social status, and the residential status of the customer and the business needs of the
people.
It caters to different groups via different sections, dedicated to the needs of all.  The
various sections of services offered by the bank are:
 
1. Personal Banking
 2. Privilege Banking
3. Wealth banking
4. Private Banking
5. NRI Banking
6. Corporate Banking
7. Business Banking
Personal Banking
 
Personal banking is dedicated to people in general and caters to an individual’s financial
needs.  This service is available to all and can be accessed by any person. The bank offers
a variety of products and services in this category. Let us peruse through the various
services and products being offered. The bank offers a variety of accounts. These
accounts help the customer carry out daily transactions as well as earn returns on the cash
deposited in their accounts. The bank offers various accounts. The list of accounts offered
by the bank is given below:
 
 Savings Account: The bank offers a variety of savings accounts. The various types of
accounts being offered by the bank are:
 
i. Titanium Privilege Account: A privilege account which provides the customer with a
dedicated privilege banker and also offers the customer free access to ATM’S Pan India
and up to 40% discount on locker rents.
ii. Gold Privilege Banking: A priority account that offers the customer free access to
ATM’S Pan India and up to 20% discount on locker rents.
iii. Silver Savings Account: A flexible account that offers the customer free banking across
all ICICI branches and up to 15% discount on locker rents.
iv. Regular Savings Account: A basic savings account that offers the customer smart shopper
silver debit card and any time banking with any of the ICICI bank branch.
v. Advantage Woman Savings Account: An account dedicated to women. This account
allows the customer free accesses to ATM’S pan India and also allows investing in RD’S
and use the maturity proceeds to purchase ornaments.
vi. Young Stars Account: An account dedicated to the young ones. This account can be held
by small children under the supervision of their parents.
vii. Senior Citizens Savings Account: An account designed to meet the financial needs of
senior citizens. Special senior citizen desks are available at various ICICI bank branch in
order to answer queries of the old ones.
viii. 3-in-1 Account: An account which acts as a tri account. This account allows the
customers to link three accounts i.e. Banking, Trading and Demat accounts in one and
carry out the transactions.
 ix. Pocket Savings account:  A digital account which enables its customers to hold cash in
electronically in a digital wallet. The customer can use the cash stored in such wallet as
per their requirements.
x. Basic Savings Bank Account: Helps the customer to carry out their day to day financial
transactions easily.
 Salary Account: Any organization employing 20 or more employees with an annual
payout of minimum Rs.36 lakhs per year and an average salary of Rs.15000 may apply
for a salary account with the bank. Helps employers pay salary to their employees with
great ease and without hassles.
 
 Pension Accounts: Pension schemes are available for people to enjoy their life post
retirement without having to worry about meeting their daily expenses. The various types
of schemes available are:
 
i. National Pension System
ii. Atal Pension Yojana
iii. EPFO
iv. Civil Pension
v. Defence Pension
 Other Accounts: Besides the above mentioned accounts, the bank also offers certain
other types of accounts. The names of the same are given below:
 
i. Child Education Plan
ii. Outward remittance
iii. EEFC Account
iv. New Pension System

 Organizational Policies

Customer Grievance Redressal Policy

Background:
Customer Service is a key focus area of the Bank. Customer Service for the Bank is a holistic
approach targeting consistent improvement in customer experience and quality of operations. We
strongly believe that a satisfied customer is the most important factor in developing our business.
The Customer Grievance Redressal Policy outlines the framework for addressing the customer
grievances. The Bank shall ensure that the policy is made available in public domain (website
and branches).

Objectives:

The objective of the policy is to ensure that:

1. All customers are treated fairly and without bias at all times
2. All issues raised by customers are dealt with courtesy and resolved on time
3. Customers are made completely aware of their rights so that they can opt for alternative
remedies if they are not fully satisfied with our response or resolution to their complaint

Applicability/Coverage: Complaint:

When a customer complains about service deficiency and if the same is not resolved within the
next working day, the contact/request is categorised as a complaint. This policy is applicable to
all customers including: o Customers from rural areas o Beneficiaries of Financial assistance
under Priority Sector and Government’s Poverty Alleviation Programmers o Customers from
overseas branches/offices o Pension account holders including those covered under Atal Pension
Yojana, National Pension Schemes, Civil and Defence Pension, and Employment Provident
Fund Organization Pension o Third party product distributed/referred by the Bank o Customers
availing Small Saving Schemes of Government of India which includes Sukanya Samridhi
Yojana, Public Provident Fund, Senior Citizen Savings Scheme and Kisan Vikas Patra o
Customers opening account under Pradhan Mantri Jan Dhan Yojana o Customers availing
Pradhan Mantri Social Security schemes which includes Pradhan Mantri Jeevan Jyoti Bima
Yojana and Pradhan Mantri Suraksha Bima Yojana o Customers making tax payment for which
RBI has authorized the Bank, under Agency Business o Any other schemes introduced by the
Government and serviced by the Bank

Cheque Collection Policy

Introduction

The policy is based on principles of transparency and fairness in the treatment of customers. The
Bank is committed to increased use of technology to provide quick collection services and
convenience to its customers.

This policy document covers the following aspects:

 Collection of cheques and other instruments payable locally, at centers within India and abroad.

 The Bank’s commitment regarding time norms for collection of instruments.

 Policy on payment of interest in cases where the bank fails to meet time norms for realization
of proceeds of outstation instruments.

 The Bank’s policy on dealing with collection instruments lost in transit.

1. Local cheques

All cheques and other negotiable instruments payable locally will be presented through the
clearing system prevailing at the center. Cheques deposited at branch counters and in
collection boxes within the branch premises before the specified cut-off time will be
presented for clearing on the same day. Cheques deposited after the cut-off time and in
collection boxes outside the branch premises including off-site Automated Teller Machines
will be presented in the next clearing cycle. As a policy, the Bank will give credit to the
customer account on the same day in which the clearing settlement takes place. Withdrawal
of amounts so credited would be permitted as per the cheque return schedule of the clearing
house. Bank branches situated at centers where no clearing house exists, would present local
cheques on drawer banks across the counter and it would be the Bank’s endeavor to credit the
proceeds at the earliest. To enhance the efficiency of the paper based clearing system, the
Cheque Truncation System (CTS) was implemented in the National Capital Region (NCR).
Since July 2008, all the member banks of the New Delhi Bankers’ Clearing House are
participating in the CTS. To encourage complete migration of cheques in the NCR of Delhi
to CTS, the processing charges in respect of cheques presented in CTS were waived till June
2009. With the complete migration of cheque clearing to CTS, the separate paper based
clearing, has been discontinued from July 2009. CTS grid has been implemented at three
locations; Delhi, Chennai and Mumbai. The clearing of various cities has been linked to the
CTS grid at these three locations. Reserve Bank of India will continue to issue directions to
include clearing of additional cities to the three grid locations. Cheque return charges shall be
levied only in cases where the customer is at fault and is responsible for such returns. The
illustrative list of reasons for returns, where the customers are not at fault is attached as
Annexure 1. Cheques that need to be re-presented without any recourse to the payee, will be
made in the immediate next presentation clearing not later than 24 hours (excluding holidays)
with due notification to the customers of such re-presentation through SMS alert. Under grid-
based CTS clearing, all cheques drawn on bank branches falling in the grid jurisdiction will
be treated and cleared as local cheques.

Clearing for Non-CTS cheques:

From January 1, 2014, residual non-CTS 2010 instruments (including postdated cheque
(PDC) and equated monthly installment (EMI) cheques) for locations that have been
migrated to the CTS grid will be presented in a separate clearing session at the CTS centers.
This separate clearing session will operate once a week (every Monday) from November 1,
2014 onwards. If the identified day for clearing non-CTS-2010 instruments falls on a holiday
under the Negotiable Instruments Act, 1881, presentation session on such occasions will be
conducted on the previous working day. Upon the commencement of special session for non-
CTS-2010 standard instruments, banks will return the non-CTS-2010 instruments, if any,
presented in the regular CTS clearing, under the reason code “37-Present in proper zone”.
Customers should make note of the above guideline while depositing the cheque as the
noncash 2010 instruments will be credited/debited to accounts as per the schedule mentioned
above.

Timing for acceptance

Cheques would be accepted during business hours of the Bank branch. Alternatively, cheques
can be deposited at ATM centers round the clock, wherever collector boxes are installed.
Collection timings for local cheques drawn on other banks (local clearing) the cut-off time
for sending cheques for collection would be worked out for each location/ branch based on
cut-off time afforded by clearinghouse at each location. The cut-off timings would be
displayed at branches/ATM for customers.

Collection timings for local cheques drawn on own branches of bank (transfer cheques):

 Cheques deposited across the counter: Same working day

 Cheques deposited in Branch/ATM drop box: As per the cut off timings of the respective
drop box  Cheques collected by Doorstep Banking agency from customer’s location: Next
working day.
 CHAPTER – 2
INDUSTRIAL ANALYSIS

 Industrial overview
 ICICI Bank, stands for Industrial Credit and Investment Corporation of India, it is
an Indian multinational banking and services company headquartered
in Mumbai, Maharashtra, India, with its registered office in Vadodara. In 2017, it is the
third largest bank in India in terms of assets and fourth in term of market capitalization. It
offers a wide range of banking products and financial services for corporate and retail
customers through a variety of delivery channels and specialized subsidiaries in the areas
of investment banking, life, non-life insurance, venture capital and asset management.
The bank has a vast network of 4,850 branches and 14,404 ATMs in India, and has a
presence in 19 countries including India.
 The bank has subsidiaries in the United Kingdom and Canada; branches in United
States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar, Oman, Dubai International
Finance Centre, China and South Africa;  and representative offices in United Arab
 Emirates, Bangladesh, Malaysia and Indonesia. The company's UK subsidiary has also
established branches in Belgium and Germany.
 ICICI's shareholding in ICICI Bank was reduced to 46 percent, through a public offering
of shares in India in 1998, followed by an equity offering in the form of American
Depositary Receipts on the NYSE in 2000. ICICI Bank acquired the Bank of
Madura Limited in an all-stock deal in 2001 and sold additional stakes to institutional
investors during 2001-02.
 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 non-Japan Asia to be listed on the NYSE.
 In 2000, ICICI Bank became the first Indian bank to list on the New York Stock
Exchange with its five million American depository shares issue generating a demand
book 13 times the offer size.
 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 Ahmadabad in March 2002 and by the High Court of
Judicature at Mumbai and the Reserve Bank of India in April 2002.
 In 2008, following the 2008 financial crisis, customers rushed to ICICI ATMs and
branches in some locations due to rumors of adverse financial position of ICICI Bank.
The Reserve Bank of India issued a clarification on the financial strength of ICICI Bank
to dispel the rumors

Acquisitions

 1996: SCICI Ltd. A diversified financial institution with headquarters in Mumbai

 1997: ITC Classic Finance. Incorporated in 1986, ITC Classic was a non-bank financial
firm that engaged in hire, purchase, and leasing operations. At the time of being acquired,
ITC Classic had eight offices, 26 outlets, and 700 brokers
 1998: Anagram(ENAGRAM) Finance. Anagram had built up a network of some 50
branches in Gujarat, Rajasthan, and Maharashtra that were primarily engaged in retail
financing of cars and trucks. It also had some 250,000 depositors.
 2001: Bank of Madura
 2002: The Darjeeling and Shimla branches of Grindlays Bank
 2005: Investitsionno-Kreditny Bank (IKB), a Russian bank 
 2007: Sangli Bank. Sangli Bank was a private sector unlisted bank, founded in 1916, and
30% owned by the Bahte family. Its headquarters were in Sangli in Maharashtra, and it had
198 branches. It had 158 in Maharashtra and 31 in Karnataka, and others in Gujarat, Andhra
Pradesh, Tamil Nadu, Goa, and Delhi. Its branches were relatively evenly split between
metropolitan areas and rural or semi-urban areas.
 2010: The Bank of Rajasthan (BOR) was acquired by the ICICI Bank in 2010 for ₹30
billion (US$460 million). RBI was critical of BOR's promoters not reducing their holdings in
the company. BOR has since been merged with ICICI Bank.

Role in Indian financial infrastructure

The bank has contributed to the set-up of a number of Indian institutions to establish financial
infrastructure in the country over the years:

 National Stock Exchange - The National Stock Exchange was promoted by India's

leading financial institutions (including ICICI Ltd.) in 1992 on behalf of the Government of
India with the objective of establishing a nationwide trading facility for equities, debt
instruments and hybrids, by ensuring equal access to investors all over the country through
an appropriate communication network.
 Credit Rating Information Services of India Limited (CRISIL) - In 1987, ICICI Ltd along
with UTI set up CRISIL as India's first professional credit rating agency. CRISIL offers a
comprehensive range of integrated products and service offerings which include credit
ratings, capital market information, industry analysis and detailed reports.
 National Commodities and Derivatives Exchange Limited - NCDEX is an online multi-
commodity exchange, set up in 2003, by ICICI Bank Ltd, LIC, NABARD, NSE, Canara
Bank, CRISIL, Goldman Sachs, Indian Farmers Fertiliser Cooperative Limited (IFFCO)
and Punjab National Bank.
 Financial Innovation Network and Operations Pvt Ltd. - ICICI Bank has facilitated
setting up of "FINO Cross Link to Case Link Study" in 2006, as a company that would
provide technology solutions and services to reach the underserved and under
banked population of the country. Using technologies like smart cards, biometrics and a
basket of support services, FINO enables financial institutions to conceptualize, develop and
operationalise projects to support sector initiatives in microfinance and livelihoods.
 Entrepreneurship Development Institute of India - Entrepreneurship Development
Institute of India (EDII), an autonomous body and not-for-profit society, was set up in 1983,
by the erstwhile apex financial institutions like IDBI, ICICI, IFCI and SBI with the support
of the Government of Gujarat as a national resource organization committed to
entrepreneurship development, education, training and research.
 North Eastern Development Finance Corporation - North Eastern Development Finance
Corporation (NEDFI) was promoted by national level financial institutions like ICICI Ltd in
1995 at Guwahati, Assam for the development of industries, infrastructure, animal
husbandry, agri-horticulture plantation, medicinal plants, sericulture, aquaculture, poultry
and dairy in the North Eastern states of India. NEDFI is the premier financial and
development institution for the North East region.
 Asset Reconstruction Company India Limited - Following the enactment of the
Securitization Act in 2002, ICICI Bank, together with other institutions, set up Asset
Reconstruction Company India Limited (ARCIL) in 2003, to create a facilitative
environment for the resolution of distressed debt in India. ARCIL was established to acquire
non-performing assets (NPAs) from financial institutions and banks with a view to enhance
the management of these assets and help in the maximization of recovery. This would relieve
 institutions and banks from the burden of pursuing NPAs, and allow them to focus on core
banking activities.
 Credit Information Bureau of India Limited - ICICI Bank has also helped in setting
up Credit Information Bureau of India Limited (CIBIL), India's first national credit bureau in
2000. CIBIL provides a repository of information (which contains the credit history of
commercial and consumer borrowers) to its members in the form of credit information
reports. The members of CIBIL include banks, financial institutions, state financial
corporations, non-banking financial companies, housing finance companies and credit card
companies.
 Institutional Investor Advisory Services India Limited (IiAS) – ICICI Bank has indirectly
invested in Institutional Investor Advisory Services, through ICICI Prudential Life Insurance
Company, in IiAS. IiAS is a voting advisory firm aka proxy firm, dedicated to providing
participants in the Indian market with data, research and commentary. It provides
recommendations on resolutions placed before shareholders of over 300 companies.

Services
IMobile Smart Keys
To make mobile payments easier, ICICI Bank has launched a payment service using a
Smartphone keyboard named ‘iMobile Smart Keys’. Users will be able to make quick and secure
payments on any mobile application, including chat, messenger, email, games or search browser,
without having to exit their current application on their Smartphone. This reduces the time taken
by customers having to switch tabs or applications within their Smartphone to access the bank’s
application ‘iMobile’.
This solution was developed by one of the winners of the bank’s app developing competition -
ICICI Appathon.
ICICI Merchant Services
ICICI Merchant Services represents an alliance formed in 2009 between ICICI Bank, India’s
largest private sector bank, and First Data, a global leader in electronic commerce and payment
services. First Data is the majority stakeholder in the alliance with ICICI Bank holding 19%.
First Data is offering the complete gateway solution while ICICI is offering the Merchant
Services, So the both companies are generating the revenue from Indian market by offering the
#d Secure merchant solution along with MOTO machine.
Money2India
Money2India is an online money transfer tracking service offered to Non-Resident Indians by
ICICI Bank Ltd. With an ever-expanding base since its launch, it is the preferred mode of online
money transfers to India, facilitating seamless money transfers with round the clock customer
service availability. To use this service, a user needs to complete a simple one-time online
registration by accessing www.money2India.com and can thereafter, start sending money from
any bank in 9 countries (USA, Canada, UK, Singapore, Australia, UAE, Sweden, Switzerland
and Hong Kong) to any beneficiary account with over 100 banks in India.
Money2India Europe
ICICI Bank UK PLC, Germany branch provides money transfer and tracking service
(Money2India Europe, Money2India.EU) in 20 European countries. The platform facilitates
money transfer to India by allowing remitter to initiate money transfer instruction on M2E.
Depending on the country of residence and the financial institution with which the user is
holding the bank account, he / she has an option to transfer money through payment gateway
integrated with the platform—with guaranteed exchange rate.
The Money2India Europe Mobile App is a full-fledged remittance platform for the customers,
who prefer to use mobile device to handle the transactions.
Extra home loans
‘ICICI Bank Extra Home Loans’ are 'mortgage-guarantee' backed loans for retail customers who
aspire to purchase their first homes in the affordable housing segment. This was introduced in
August 2015 in association with India Mortgage Guarantee Corporation (IMGC). IMGC is a
joint venture between National Housing Bank (NHB), an RBI subsidiary which regulates Home
Finance Companies in India; NYSE-listed Genworth Financial Inc., a Fortune 500
company; International Finance Corporation (IFC) and Asian Development Bank (ADB).
Smart Vault
‘Smart Vault’ are fully automated lockers available 24x7, including weekends and post banking
hours were launched in August 2015. The ‘Smart Vault’ uses robotic technology to access the
lockers from the safe vault conveniently at any time of their preference in total privacy, without
any intervention of the branch staff.
Saral Loans
In August 2015, ICICI Bank introduced ‘Saral-Rural Housing Loan’. Applicants from rural areas
including women borrowers as well as seekers from weaker sections can now avail home loans
at the ICICI Bank Base Rate (“I-Base”) which is currently at 9.70%. An eligible borrower can
take up to ₹1.5 million (US$23,000) under the ‘ICICI Bank Saral–Rural Housing Loan’.
ICICI Bank Unifare Bangalore Metro Card
ICICI Bank and Bangalore Metro Rail Corporation Limited (BMRCL) in April 2015, announced
the launch of the ‘ICICI Bank Unifare Bangalore Metro Card’ to offer the commuters dual
benefits of an ICICI Bank credit or debit card and BMRCL’s smart card, called Namma Metro
Smart Card.
'Touch n Remit' facility for NRIs in Kingdom of Bahrain
In March 2015, ICICI Bank tied up with SADAD Electronic Payments WLL to offer remittance
service for NRIs based in Bahrain, enabling them to transfer money instantly to India from the
latter’s kiosks spread across the Kingdom of Bahrain. This facility has been named as ‘Touch n
Remit’.
ICICI Bank Ltd launches 'Video Banking' for NRI
In February 2015, ICICI Bank announced the launch of 'Video Banking' for all its NRI (Non
Resident Indian) customers. Using this service, the customers can now connect with a customer
care representative over a video call, round-the-clock, on all days from anywhere using their
smart phone.
Pockets by ICICI Bank
In February 2015, ICICI Bank Re-Launched POCKETS, now working as a "Digital wallet" for
everyone (Android OS users only). The Wallet can be opened by anyone and can conduct
transactions like recharge, shopping, transfer money using the virtual visa card which is issued
when signing up for the wallet.
ICICIBankPay on Twitter
ICICI Bank in January, 2015 launched banking services on Twitter, christened as
'ICICIBankPay'. This service in India enables ICICI Bank customers to transfer money to anyone
in the country who has a Twitter account, check account balance, view last three transactions and
recharge prepaid mobile in a completely secure manner.
Contactless Credit and Debit Cards
ICICI Bank in January, 2015 announced the launch of the country’s first ‘Contactless’ debit and
credit cards, enabling its customers to make electronic payments by just waving the cards near
the merchant terminal in lieu of dipping or swiping them. These cards are based on the near field
communication (NFC) technology, which provides customers the improved convenience of
speed as these cards require significantly less time than traditional cards to complete a
transaction along with enhanced security as they remain in control of the customer.
My Savings Rewards
ICICI Bank has rolled-out the programme 'My Savings Rewards' from 1 September 2012, where
reward points are offered to individual domestic customers for a variety of transactions done
through the savings bank account. Reward points are offered automatically to customers for
activating Internet banking, shopping online/ paying utility bills with Internet banking and auto-
debit from savings account towards equated monthly installments for home/ auto/ personal loan/
recurring deposit. Customers are required to maintain a monthly average balance
of ₹15,000 (US$230) or more. the Indian bank will recuire 5.5% interest on short term loans and
long term bonds and mortgages loans up to $2 million up to 20 years to pay back annual interest
of 5.5% short term loans from 3 months up to 3 years at 5.5% .credit interest is reduced to 10%
annually .
iWish- the flexible recurring deposit
iWish is a flexible recurring deposit product launched by ICICI Bank for its savings account
customers. Unlike a traditional recurring deposit, iWish allows customers to save varying
amounts of money at any time of their choice. Customers can create several goals and track their
progress on an online interface.
ICICI Bank has developed this product in collaboration with Social Money. ICICI Bank has also
launched an app for Android and Apple smart watches. The app will provide the facility of
online banking transaction from smart watch.
Software robotics
ICICI on 10 Sep 2016 announced 'software robotics' initiative—a first by any Indian bank. Over
200 software robots are now performing over 1 million transactions per day for the bank which
comprises 10% of its total transactions. The bank will engage 500 software robots by the end of
the year which will help it to automate 20% of its total transactions.
Block chain technology
In October 2016, ICICI Bank, in partnership with Emirates NBD, became the first Indian Bank
to successfully execute transactions in international trade finance and remittance using block
chain technology. The block chain technology replicates the paper-intensive international trade
finance process as an electronic decentralized ledger that gives all the participating entities
including banks the ability to access a single source of information. It has enabled the Bank to
exchange and authenticate remittance transaction messages as well as original international trade
documents related to purchase order, invoice, shipping & insurance, among others, electronically
on block chain in real time. In addition, ICICI Bank is currently working to put together
programs that will let people transfer money inside and outside the country through the Stellar
(payment network) block chain platform.

 Current Issues
The banking industry has seldom experienced such turmoil. Coming out of a period of recovery,
demands and expectations continue to grow, many times fueled by experiences outside the
financial service area. Shrinking fees and regulatory compliance have altered profit expectations.
Customers are likely to have financial relationships with multiple providers. And emerging
technology and increased use of mobile technology is providing for less customer interaction and
more opportunity for upstarts in the business, exploiting areas of customer dissatisfaction.
In today’s world, we measure every experience by every other experience we have. We don’t
limit our thinking to one category. Our retail experiences inform every business and banking
experience. Here’s a look at some of the major trends facing banking today, gleaned from the
best research in the industry, and how these trends relate to the retail environment.

1. Personalization. Customers expect a tailored solution to their needs, just like our

Starbucks experience. Each of us has our own personal coffee order such as a No Fat
Latte with a shot of Hazelnut, with our name on the outside of the cup. Banks have digital
databases that can be leveraged to personalize the experience and empower customers to
make the right decisions. In fact, we believe asking the right questions of customers is the
first step in assisting customers reach their financial destination.
2. Going the extra mile. Problem resolution is a huge problem for banks. One-third of
customers reported having a problem in the last 12 months for which they contacted their
financial service provider. How their problem is resolved becomes the seminal
experience driving advocacy. Some 45% will discourage others from using their bank
after a bad experience. A problem artfully solved can turn a disgruntled customer into a
loyal customer. Just ask the Nordstrom employee who made a house call to exchange a
 pair of shoes. How about the blouse that was returned and refunded when it was clearly
from another store? And then there’s the one about Nordstrom splitting two pairs of shoes
in order to fit the man with different sized feet. The Nordstrom stories are part of their
pride and culture and represent their commitment to solving a customer’s problems.
3. Loyalty. Wealthier customers in the U.S. give lower loyalty scores to banks than those of
more modest means. Affluent customers generally insist on premium service and tailored,
expert advice. They actually want a personal experience. Moving affluent or mass-
affluent customers from a detractor to a promoter is worth roughly five times the
economic value of turning mass-market customers into promoters. That’s a lesson that
Lexus knows well. Early on, Lexus achieved a remarkable 63% repurchase rate among
first-time buyers because they knew their buyers were attracted to comfort, long-term
value, and reliability.   They relied on loyal customer recommendations and provided
them with special services to instill that loyalty. Today, Lexus is highest among luxury
brands for customer satisfaction with dealer service.
4. Customer Experience Culture. More than three-fourths of executives say that the
customer experience has improved at banks while 2/3 of consumers say they have seen
no change in the experience. This gap between internal effort and external experience
needs a foundational change in culture and language. Customers want to feel cared for
and valued. Ritz Carlton Gold Standards are the foundation of their company. Their
motto “We are Ladies and Gentlemen serving Ladies and Gentlemen” is legendary, but
their credo is even more admirable because it says the Ritz-Carlton experience enlivens
the senses, instills well-being and fulfills even the unexpressed wishes and needs of our
guests.
5. Trust. Some 66% of Americans are still angry at big banks for the financial crisis. There
is an issue of trust. As many as 31% of megabank customers say they don’t trust their
bank. Integrity in banking is of critical importance now. Hampton Inns were recently
named one of the most trusted brands in the country along with perennial winners Apple
and Amazon. Hampton Inns did something disruptive in their category. They made a
decision to wash the duvet covers after every visit to decrease the spread of germs and
bedbugs. To drive the point home with clients, Hampton Inn puts a handwritten note on
the bed frame to let guests know the linens have been laundered. It’s just a small measure
of trust and authenticity.
6. Memorable Experiences. Bank customers experience 60% more memorable experiences
that involve some form of human touch than from good rates or low fees. Disney wrote
the book on memorable experiences. Who can put a price on your child’s hug from
Mickey and Minnie? They use the phrase, “the Magic of Disney” to help describe the
experience that they create for their guests. They are constantly “Imagineering” new
ways to delight their customers.
7. Cross-sell. Research shows that 41% of US adults are interested in keeping all of their
financial products and accounts with a single firm, but banks have struggled with cross-
selling. They need a new mindset of customer cultivation that includes growing their
relationships from simple accounts to loans, investments and business banking. Apple has
built a unique type of loyalty based on interconnected systems and products. Mac users
are typically all in – a Mac computer or Laptop, an Apple phone full of apps downloaded
from an iTunes account, an iPad, the iCloud and an Apple TV device. The pain of
moving to an Android is too hard for those with such an interconnected world.
8. Mobile Banking Challenges. Mobile banking is fast becoming a given in the industry.
One in three bank customers use mobile anking, primarily those aged 25-45, and 61% of
internet user’s bank online. With fewer visits to a branch, it is important to tailor services
for customers without regard to the channel. Three out of five banking customers say
they want the option of researching products on their own rather than asking bank
employees. When actual human interactions happen on phone, in person or in chat, there
is more importance on the quality of the experience. The omni-channel consumer expects
everything to be readily available at his or her fingertips and expects the overall brand
experience to be similarly accessible. Macy’s now refers to itself as an “omni-channel
retail organization operating stores and websites.”
9. Small Business. For most small businesses, the bank relationship starts with setting up
their operating accounts and over time establishing credit, but these products barely
scratch the surface of the customer’s overall financial needs. To maximize the mutual
value of the relationship, banks need to go for the trifecta: the small business relationship,
the personal relationship and the wealth management relationship. Certainly something
that Visa has perfected over the years with their consumer and business products – and
with their relationship with the Triple Crown of horse racing. 
10. Customer Behavior and Segmentation. Banks are slowly evolving to customer
segmentation to get to know their customers better. Retailers have used segmentation
well for many years. Target is an example. They are providing fashionable differentiated
merchandise at discount prices. Why? Target customers are likely to be college educated,
with a median income of $64,000 a year, and brand conscious. They are smart shoppers,
savvy to trends and like a retailer that gives back to the community. We know that how
people relate to each other is as important as customer segmentation so investing in the
knowledge of learning your personal behavioral style and that of your customer is just as
important as segmentation.

 Key Competitors
 
HDFC Bank Limited
is an Indian financial services company based in Mumbai, Maharashtra that was incorporated in
August 1994. HDFC Bank is the fifth or sixth largest bank in India by assets and the second
largest bank by market capitalization as of February 24, 2012. The bank was promoted by the
Housing Development Finance Corporation, a premier housing finance company (set up in 1977)
of India. HDFC Bank has 1,986 branches and over 5,471 ATMs, in996 cities in India, and all
branches of the bank are linked on an online real-time basis.

Axis Bank Limited

is an Indian financial services firm headquartered in Mumbai, Maharashtra. It had begun
operations in 1994, after the Government of India allowed new private banks to be established.
The Bank was promoted jointly by the Administrator of the Specified Undertaking of the Unit
Trust of India (UTI-I), Life Insurance Corporation of India (LIC), General Insurance Corporation
Ltd., National Insurance Company Ltd.,The New India Assurance Company,TheOriental
Insurance Corporation and United India Insurance Company UTI-I holds a special position in the
Indian capital markets and has promoted many leading financial institutions in the country. As
on the year ended 31 March, 2012, Axis Bank had an operating revenue of 13,437crores and a
net profit of 4,242 crores.

Yes Bank 
is a private bank in India. It was founded by Ashok Kapur andRanaKapoor,with the duo holding
a collective financial stake of 27.16%. YES Bank has received significant national and
international recognitions which include Mr. RanaKapoor, Founder, MD & CEO being
recognized as the

Entrepreneurial Banker of the Decade (2001-2010)

by Bombay Management Association,
India's No. 1 New Private Sector Bank 
in the Financial Express-E&Y Best Banks Survey 2010,

India's Fastest Growing Bank of the Year

at the Bloomberg TV Financial Leadership Awards 2011.

Kotak Mahindra Bank 

is an Indian financial service firm established in 1985. It was previously known as Kotak
Mahindra Finance Limited, a non-banking financial company. In February2003, Kotak Mahindra
Finance Ltd, the group's flagship company was given the license to carryon banking business by
the Reserve Bank of India (RBI). Kotak Mahindra Finance Ltd. is the first company in the Indian
banking history to convert to a bank. Today it has more than 20,000employees and Rs. 10,000
crore in revenue

 Environmental Scanning (PESTEL analysis)

The Industrial Credit and Investment Corporation of India (ICICI) Bank came into being in 1994
by an Indian Financial Institution, ICICI Limited. The bank has its headquarters based in
Mumbai, India. ICICI is the second largest bank in India according to market capitalization. It is
known to be the largest private sector bank in India. The bank is popular for providing a range of
financial and banking services and products including retail and corporate banking, venture
capital, private equity, insurance, and corporate finance. It is the first bank in India that is listed
on NYSE.

POLITICAL FACTORS
Banking is greatly affected by political factors in any country. Funds are mobilized more
proficiently in a stable political environment. However, if the political environment is unstable, it
might lead to create credit risks for the bank. It influences the investment of a country because of
future doubts. Poor administration, bureaucracy, coalition, and power hinder the strength of
India’s policy-making structure. Hence, it can be seen how the political environment can affect
the banking sector in many ways.

ECONOMIC FACTORS
India has a very weak economic structure with a low GDP per capita. It has a well-diversified
economy. The country’s economy is expanding along with the private sector. Banks have been
very significant in financing private sector due to the limitations of fund raising options. The
banking sector in India is at high credit risk. It owes to the less developed legal framework which
leads to lower recovery and late payments. The regulations of banking in India are similar to the
standards of other countries.
SOCIAL FACTORS
The population of India is growing rapidly. Regardless of this, the rural areas are deprived of the
basic facilities of banking. The rural areas have been untouched by banking. Small businessman
and farmers have to take loans from the local sellers. Many people are looking forward to
electronic systems of transferring funds with personal experiences. In this era of technology and
information, the youth is always updated and can evaluate the results informatively. They are
able to take their decisions themselves and manage their finances as well.

TECHNOLOGICAL FACTORS
The banking sector has been immensely changed with the help of technology. Banking now
focuses on customer centric approach, Internet banking, ATMs, universal banking, core banking,
and many more. This has increased efficiency and productivity. Moreover, the payments made
through cherubs have also decreased. Today the virtual banking concept has reduced costs and
provides better customer service.

LEGAL FACTORS
The legal framework of India is advancing and has many inbuilt weaknesses. The SARFAESI
Act of 2002 has improved the legal structure although it is still in process. This allows the banks
to sell the underlying assets without the involvement of court. Furthermore, many banks have
created means for the process of recovery and checked their wrong doings.

ENVIRONMENTAL FACTOR
The insurance companies in India are affected by the environmental factors that ultimately affect
the industry. The Tsunami in 2008 affected the growth of industry as it had a great impact in the
south-western India.   

 Porter’s Five Forces Model of Competition

Porter Five Forces Analysis is a strategic management tool to analyze industry and understand
underlying levers of profitability in a given industry. ICICI Bank Limited managers can use
Porter Five Forces to understand how the five competitive forces influence profitability and
develop a strategy for enhancing ICICI Bank Limited competitive advantage and long term
profitability in Money Center Banks industry.
Brief overview of ICICI Bank Limited

ICICI Bank Limited is one of the leading firms in the Money Center Banks. Over the years ICICI
Bank Limited has redefined the ways of doing business in Financial. ICICI Bank Limited is
listed at New York Stock Exchange (NYSE) and have a market cap 26.22B USD.
  

What are Porter Five (5) Forces

In his revolutionary article - "Five Forces that Shape Strategy", Michael Porter observed five
forces that have significant impact on a firm's profitability in its industry. These five forces
analysis today in business world is also known as -Porter Five Forces Analysis. The Porter Five
(5) Forces are -

 Threat of New Entrants

 Bargaining Power of Suppliers
 Bargaining Power of Buyers
 Threat from Substitute Products
 Rivalry among the existing players.

Porter Five Forces is a holistic strategy framework that took strategic decision away from just
analyzing the present competition. Porter Five Forces focuses on - how ICICI Bank Limited can
build a sustainable competitive advantage in Money Center Banks industry. Managers at ICICI
Bank Limited can not only use Porter Five Forces to develop a strategic position within Money
Center Banks industry but also can explore profitable opportunities in whole Financial sector.
 ICICI Bank Limited Porter Five (5) Forces Analysis for Financial Industry

Threats of New Entrants

New entrants in Money Center Banks brings innovation, new ways of doing things and put
pressure on ICICI Bank Limited through lower pricing strategy, reducing  costs, and providing
new value propositions to the customers. ICICI Bank Limited has to manage all these challenges
and build effective barriers to safeguard its competitive edge.

How ICICI Bank Limited can tackle the Threats of New Entrants

 By innovating new products and services. New products not only bring new customers to
the fold but also give old customer a reason to buy ICICI Bank Limited ‘s products.
 By building economies of scale so that it can lower the fixed cost per unit. 
 Building capacities and spending money on research and development. New entrants are
less likely to enter a dynamic industry where the established players such as ICICI Bank Limited
keep defining the standards regularly. It significantly reduces the window of extraordinary
profits for the new firms thus discourage new players in the industry.

Bargaining Power of Suppliers

All most all the companies in the Money Center Banks industry buy their raw material from
numerous suppliers. Suppliers in dominant position can decrease the margins ICICI Bank
Limited can earn in the market. Powerful suppliers in Financial sector use their negotiating
power to extract higher prices from the firms in Money Center Banks field. The overall impact of
higher supplier bargaining power is that it lowers the overall profitability of Money Center
Banks. 

How ICICI Bank Limited can tackle Bargaining Power of the Suppliers

 By building efficient supply chain with multiple suppliers.

 By experimenting with product designs using different materials so that if the prices go
up of one raw material then company can shift to another.
 Developing dedicated suppliers whose business depends upon the firm. One of the
lessons ICICI Bank Limited can learn from Wal-Mart and Nike is how these companies
developed third party manufacturers whose business solely depends on them thus creating a
scenario where these third party manufacturers have significantly less bargaining power compare
to Wal-Mart and Nike.
Bargaining Power of Buyers

Buyers are often a demanding lot. They want to buy the best offerings available by paying the
minimum price as possible. This put pressure on ICICI Bank Limited profitability in the long
run. The smaller and more powerful the customer base is of ICICI Bank Limited the higher the
 bargaining power of the customers and higher their ability to seek increasing discounts and
offers. 

How ICICI Bank Limited can tackle the Bargaining Power of Buyers

 By building a large base of customers. This will be helpful in two ways. It will reduce the
bargaining power of the buyers plus it will provide an opportunity to the firm to streamline its
sales and production process.
 By rapidly innovating new products. Customers often seek discounts and offerings on
established products so if ICICI Bank Limited keeps on coming up with new products then it can
limit the bargaining power of buyers.
 New products will also reduce the defection of existing customers of ICICI Bank Limited
to its competitors.
Threats of Substitute Products or Services

When a new product or service meets a similar customer needs in different ways, industry
profitability suffers. For example services like Drop box and Google Drive are substitute to
storage hardware drives. The threat of a substitute product or service is high if it offers a value
proposition that is uniquely different from present offerings of the industry.

How ICICI Bank Limited can tackle the Treat of Substitute Products / Services

 By being service oriented rather than just product oriented.

 By understanding the core need of the customer rather than what the customer is buying.
 By increasing the switching cost for the customers.
Rivalry among the Existing Competitors

If the rivalry among the existing players in an industry is intense then it will drive down prices
and decrease the overall profitability of the industry. ICICI Bank Limited operates in a very
competitive Money Center Banks industry. This competition does take toll on the overall long
term profitability of the organization. 

How ICICI Bank Limited can tackle Intense Rivalry among the Existing Competitors in
Money Center Banks industry

 By building a sustainable differentiation

 By building scale so that it can compete better
 Collaborating with competitors to increase the market size rather than just competing for
small market.
Implications of Porter Five Forces on ICICI Bank Limited

By analyzing all the five competitive forces ICICI Bank Limited strategists can gain a complete
picture of what impacts the profitability of the organization in Money Center Banks industry.
They can identify game changing trends early on and can swiftly respond to exploit the emerging
opportunity. By understanding the Porter Five Forces in great detail ICICI Bank Limited 's
managers can shape those forces in their favor.

CHAPTER – 3
Marketing Strategy

 Products of the company

DEBIT CARD

The ICICI Bank Debit Card is a revolutionary form of cash that allowscustomers toaccess their
bank account around the clock, around theworld. The ICICI Bank Debit Card
can be used for shopping at more than3.5 Lakh merchants in India and 24 million merchants wor
ldwide.

TRAVEL CARD

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

INVESTMENT PRODUCTS
Along with Deposit products and Loan offerings, ICICI Bank assists you to manage yitsfinances
by providing various investment options ranging from ICICI Bank
TaxSaving Bonds to Equity Investments through Initial Public Offers and
Investment in PureGold. ICIC IBank facilitates following investment products:

•Government of India Bonds

•Investment in Mutual Funds

•Initial Public Offers by Corporate

•Investment in "Pure Gold"

•Foreign Exchange Services

•Senior Citizens Savings Scheme

TRADE SERVICES:

ICICI Bank offers online remittances as well as online processing of letters of credit and bank
guarantees.

ASSET MANAGEMENT:

Prudential ICICI Asset Management
Company offers a widerange of retail mutual fund products tailored to suit varied risk and maturi
ty profiles.

CASH MANAGEMENT:

ICICI Bank offers a complete Range Of highly customizedsolutions for managing both the
collections and payments requirements of clients by leveragingtechnology. Daily customized
transactions reports and real time web-enabled downloads, provideon-tap information facilitating
effective working capital management.

CORPORATE BANKING:

ICICI Bank offers comprehensive and customized financialsolutions for its corporate clients,
including rupee and foreign currency debts, working capital credit, structured financing
syndication and transaction banking products and services.

INTERNET BANKING:

Internet banking is available to all ICICI Bank savings and deposit account holders, credit card,
demit and loan customers. Internet banking service offers customers a world of convenience with
services such as balance enquiry, transaction history, account statement, bill payments, and
fund transfers and accounts related service requests.

ATMS:

With more than 2500 ATMs across the country, ICICI Bank has one of the largest ATM
networks in India.

PHONE BANKING:

Phone banking offers 24*7 services across Liability, asset and

investment products to both retail and corporate customers.

NRI-BANKING:

A gamut of services to take care of all NRI banking needs including deposits, money transfers
and private banking.

MONEY 2 INDIA:

A complete range of online and offline money transfer solutions to send money to India.

PROPERTY:

For millions of home buyers across the country, ICICI Bank offers not just great deals on home
loans but also a wealth of expert advice.ICICI Bank offers home search service which can help a
customer identify the property of his choice based on his budget and other requirements.

DEMAT ACCOUNTS:

ICICI

Bank‟s demit services after unique features

like e-constructions, consolidation, digitally signed statements, mobile requests and corporate
benefit tracking.

RURAL BANKING:

Bank offers technology-based solutions, financial innovations and multiple delivery channels to
meet the financial needs of rural areas
  4'Ps(pricing,place,product&promotion)

Pricing

Bank Products Starts With Three Basic Questions.1. What rate does the bank need to meet its
financial objectives? The answer is, “it depends.”Some considerations for loan and deposit
pricingare:
• ROA or ROE objectives
• Related income taxes
• Earning assets to total assets
• Equity-to-asset ratio
• Cost to service earning assets being funded or deposits funding an earning asset
• Pricing for the activities and risks associated with the product
• Rate tiers based on product balances
• Asset and liability mix Another element to consider in the pricing of earning assets is the risk
of loss.
Most notably, this is relevant in loan pricing. Many banks assign a risk weighting to individual
loans over a certain size or based on loan type and assign a credit risk charge based on those
ratings. Customer relationships are difficult to assign a value to in the pricing process. Customers
will generally press for some price concessions in consideration of other relationships they have
with the bank. Asset and liability mix also impacts pricing results. Generally speaking,
banks operating with higher loan-to-asset ratios are able to afford to pay more for
deposits. Likewise, banks can afford to be more competitive on certain deposit products if they
have fewer maturities in a particular timeframe or less total outstanding balances in a product
line.

Product

Customers have more distribution channels available to them today than at any other  point in
history. In the past 10 years, the number of bank locations has increased 20%.Of course, there
are the mortgage bankers, the Internet, and a host of other financial service providers competing
for your customer’s loan and deposit business. The point is, the competitive marketplace always
ensures that if a financial institution is charging too much for loans or paying too little for
deposits, its share of the market will likely dwindle as existing and prospective customers find
alternative providers. You can do all the math you want to determine required pricing points, but
if you’re pricing is uncompetitive, your market share will shrink.
 
What would the bank have to do to sales and operations to make its rates the most competitive in
its market? Pricing is a key issue for the associates who sell bank products to your
customers. The fact is, lenders want the lowest rates, and people dealing with depositors want to
pay the highest rates. You need the right balance of fee income, strategies to reduce operating
costs, and a healthy asset and liability mix to change your required pricing.

PLACE

This component of marketing mix is related to the offering of services. The services are sold
through the branches. The 2 important decision making areas are: making available the promised
services to the ultimate users and selecting a suitable place for bank branches. The number of
branches OF ICICI: 1900 in India and 33 in Mumbai. LOCATION OF BRANCH:Shivam
Shopping Centre, S.V.Road,Opp. New Era Cinema, Malad (W), Mumbai. MUMBAI ,
400064.LOCATION OF ATMS:
•Malad subway
•With branch
•Mind space
•Orem
•Raheja township
Why they select this place as branch?
•The selection of a suitable place for the establishment of a branch is significant with
•the view point of making place accessible.
•The safety and security provisions a
•Convenient to both the parties, such as the users and the bankers
•Infrastructure facility
•Near to station and located on s. v. road well crowded area
.•Market coverage

 
PROMOTION
•Advertising: Television, radio, movies, theatres•Print media: hoardings, newspaper, magazines•
Publicity: road shows, campus visits, sandwich man, Sponsorship•Sales promotion: gifts,
discount and commission, incentives,etc.•Personal selling: Cross-sale (selling at competitors
place),personalized service•Telemarketing: ICICI one source Call
center (mind space)PROCESSFlow of activities: all the major activities of ICICI banks follow
RBI guidelines. There has to be adherence to certain rules and principles in the banking
operations. The activities have been segregated into various departments accordingly.
Standardization: ICICI bank has got standardized procedures got typical transactions. Infect not
only all the branches of a single-bank, but all the banks have some standardization in them. This
is because of the rules they are subject to. Besides this, each of the banks has its standard forms,
documentations etc. Standardization saves a lot of time behind individual transaction.
Customization: There are specialty counters at each branch to deal with customers of a particular
scheme. Besides this the customers can select their deposit period among the available
alternatives. Number of steps: numbers of steps are usually specified and a specific pattern is
followed to minimize time taken. Simplicity: in ICICI banks various functions
are segregated. Separate counters exist with clear indication. Thus a customer wanting to deposit
money goes to ‘deposits ‘counter and does not mingle elsewhere. This makes procedures not
only simple but consume less time. Besides instruction boards in national boards in national and
regional language help the customers further. Customer involvement: ATM does not involve any
bank employees. Besides, during usual bank transactions, there is definite customer
involvement at some or the other place because of the money matters and signature requires.

 STP (Segmenting Targeting and Positioning)

ICICI has always been a pioneer in the Indian banking industry specifically retail banking. It had
introduced concept of branding in the banking industry. For this, it had extensively used the
internet. ICICI had focused on various areas of marketing for building its brand. For this, it
targeted and acquired customers in different market segments. Though the concept of Customer
Relationship Management (CRM) is quite new, ICICI is following relationship management and
database marketing since its inception. As stated above, ICICI has always believed in product
innovation. It has also designed its channel strategy which aims at getting the common man’s
“Share of wallet”.

Basis of Segmentation

 Occupation – Different products for different occupational segment identified.

 Income – Minimum balance serves as an income segment barrier.
 Geographical – Concentrated on Tier 1 & Tier 2 Cities trying to extend reach.
  Age – Different products like student account.

Targeting

Targeting is the second stage of the SEGMENT “Target” POSITION (STP) process. After the

market has been separated into its segments, the marketer will select a segment or series of
segments and ‘target’ it/them. Resources and effort will be targeted at the segment.

The first is the single segment with a single product. In other word, the marketer targets a single
product offering at a single segment in a market with many segments. For example, British
Airway’s Concorde is a high value product aimed specifically at business people and tourists
willing to pay more for speed.

ICICI has a separate marketing strategy for different segments. It tailors its marketing campaigns
to meet the needs of target prospects. It has long used technology to track and create
differentiated product offering for different customer segments

Positioning

ICICI’s core proposition is reflected in the line ‘Hum hail an’, which spells trust, credibility and
reinforces its position as a total financial solution provider (brought about through its cross
selling effort). ICICI has followed modernization by making technology as the backbone of all
its operations. ICICI is one bank which uses and applies international practices to the local
context. For identifying the need of the customers, it has a ‘Product development department’,
which continuously studies the market and analyses the competitive landscape.

Despite heavy competition in BFSI industry ICICI has managed to have product differentiation.
For e.g. they have variants in various basic products like savings bank account to suit different
customer base and different customer needs. Also, ICICI is an avid practitioner of product
augmentation i.e. redefinition of the banking products with extra benefits and features added to
the products. Pricing is one area every bank has to be careful about. Some of the ICICI’s pricing
strategies are

 Philosophy of profit through volume

 Effort to drive out competition
 Price leader in retail banking product
 Aggressive pricing facilitated through low cost of fund acquisition

ICICI’s distribution strategy is one of the best in industry. It has achieved this by cross selling of
products as a major area of focus. ICICI has always made an effort to reach the customer rather
than waiting for them. For this, it created the concept of DSAs (Direct Selling Agents) and DSTs
(Direct Selling Teams). Also, ICICI has used internet, mobile, ATM’s and other technological
device to reach and serve the customers. ICICI’s promotion strategy is divided into two areas –
Corporate Branding and Product Branding. The promotion is mainly through print media. Also
there is various point of purchase tools for different products to reach relevant customer segment.
Some of the promotion tools used is promotional material at channel partner outlets, billboards,
signboards, kiosks at residential and commercial complexes and organizing events at corporate
campuses. With Baughman ICICI entered into In-Film promotions. Co-branding initiatives
include alliance with Amway India for launch of international credit card. Indian Railways
Catering And Tourism Development Corporation, in conjunction with ICICI Bank, announced
the launch of mobile payments and ticketing system, offering IRCTC customers to book railway
tickets via SMS and make payments through their ICICI Bank accounts. Other initiatives include
Cross brand associations i.e. acquiring databases of high net worth clientele of lifestyle products:
Tie-up with ‘Woven Hues’. Young Stars account Promotion through tie-up with Cartoon
Network, and in-series promotion through Tom & Jerry. ICICI faced tremendous criticism
during the worldwide banking failure, owing to some toxic assets and also for the loan recovery
methods. But it will always be recalled as the most innovative brand, pioneering the modern day
Indian banking

 Distribution Channels

Distribution in banking A distribution channel is a route to the market for a supplier789. In the
case of a bank, the distribution channel is the way the banking product or service takes from the
bank to the customer. Most banks have multiple channels to serve their customers. Today, they
can choose between branches, contact centers, ATMs and online channels, portals and web
banks. Types of distribution channels 1. Branches. These are the face of the bank and the place
where the client meets the bank. The distribution is made by the traditional counter. The bank’s
president is far away and not always known to customers. However, the client manager is close,
he advises, listens to the client, makes clients’ financial life easier790. According to a survey
carried out by Accenture in September 2008791, the branch is the most preferred channel for all
the interactions that emotionally involve customers, such as buying complex products (76%
preference) receiving financial advise (71%) and resolving an issue (59%). 73% of the customers
visiting a branch say that they are looking for a personalized contact. In this respect, the branch
is a distribution channel where the human factor plays a dominant role. 2. Specialized branches
have been created as an alternative for the classic branches. These specialized branches are
focused on a certain type of activity such as: operations for individuals, for small business or for
corporate clients. Banks have opened such branches in supermarkets or malls. The main reason
for establishing such branches was to have a close relationship with these corporate customers
and to provide services of interests for their clients. Their primary activities are the consumer
loans and basic operations for individuals (payments, foreign exchanges etc.). These branches
are accessible all week long (even in Saturdays and Sundays) as long as the 789 Julian Dent –
Distribution Channels. Understanding and Managing Channels to Market, Kogan Page, London,
2008. 790 EFMAG Magazine No. 220 July/August 2009, Branches- The Client comes for a
service to satisfy his needs,
http://www.efma.com/index.php/our_services/efmag/index/EN/1/74/220. 791 EFMAG
Magazine No. 218 March/April 2009, Multichannel Distribution – The interconnected approach
http://www.efma.com/index.php/our_services/efmag/index/EN/1/74/218. 1087 supermarkets and
malls are open. BRD-GSG, ING Bank was the first banks to open such branches in Romania. 3.
In order to better serve certain ranges of clients, banks have also created corporate branches or
private banking branches. These clients require more sophisticated products and services and
high standards of quality. Therefore the staff employed in these branches should be seniors in
terms of products knowledge and the quality of service delivery. 4. Among the specialized
branches, we can also mention: the mortgage branches whose focus is on selling mortgage loans.
Raiffeisen Bank created such a branch named „Raiffeisen – Casa Ta” as a result of the high
demand for mortgage loans and the complexity of these products. 5. Self banking branches were
first created by ING. These branches have two areas: one where the customers are served by
bank employees (usually 3 or 4 persons) during the normal working hours and one where the
customers can use self banking devices. These can be used all day long (24h/24, 7 days/7) and
the access to this area is given to all the bank customers who have a debit card. Here, the clients
can make deposits, payments, cash withdrawals, invoice payments, repayments of loans
installments. BRD-GSG, RBS have also created such self banking branches. 6. Mobile branches
were first used by Raiffeisen Banca pentru Locuite. The bank did not have a branch network and
the products were delivered by the help of sales agents. The bank started a banking caravan
which reached the most important cities in Romania. The aim of this caravan was to promote and
to sell the bank’s products. BRD-GSG has also created a flexible and movable branch. ( BRD
BLITZ) located mainly in rural areas. In this respect, the branch wanted to reach the rural
population (neglected by all others banks). These branches had a rapid installation (2 weeks) and
can be easily relocated to another place (if necessary). The opening hours were 2-3 days/week, 3-
4 hours/day. 7. Banking cafes were first settled in Romania by Banca Transilvania. The banking
cafe is the result of a partnership between a bank and a cafe. The branch that is located in a cafe
can offer a full range of products and services (information point which offer leaflets, brochures
with the bank’s products and services to the existing and potential customers along with financial
newspapers and magazines). This concept was later developed by ING, Volksbank, BRD. These
banking cafes are in the major cities of Romania (where there is a large business community). 8.
Direct mail is another distribution channel for banking products and services. In the same time,
direct mail is also a promotional tool. The aim of delivering the banking products and services by
mail can be, not only just simply informing the clients about a new product but also convincing
the client to buy a certain product. The main advantage of delivering by mail is the fact that the
bank can promote its products and services to a certain segment of clients. In this way, the bank
can target a certain group of clients in order for the message and products to be tailored
accordingly. 9. Automatic teller machines (ATMs) were first introduced in Romania in 1995 and
they have evolved ever since. By the end of 2006, the number of ATMs overcame the number of
branches. This fact is explained by the difference of operation costs involved by these two
distribution channels. ATMs have been rapidly moving from just a cash-dispensing machine to a
self-service banking channel. The driving forces of this movement are: firstly, the pursuit of
operational efficiency and then, the battle for differentiation in the service being offered. ATMs
can increase the marketing potential by providing services to clients in others places than the
bank branches. ATMs are an alternative for crowded desks in branches. Cash withdrawals were
moved from the cash desks to the ATMs and this transfer is encouraged by most of the
Romanian banks by lower fares for these services. This can reduce the waiting time in branches.
The numbers of ATMs users has increased in Romania. The clients appreciate the user-friendly
feature of ATMs , the large number of operations that can be done through ATMs, the speed and
the security of these devices and last but not least the theoretically unlimited availability of
ATMs. Besides all these, all the transactions are automatic, which reduces the risk of human
mistakes in transactions.

 Promotion Strategy

Banks have a unique challenge when it comes to marketing because they do not offer tangible
products for consumers. Promoting a bank requires convincing consumers to trust a bank with
their money and make customers feel like they are getting the most value for their money. Once
customers invest with a bank, the bank must work to keep customers and get them to buy-in to
additional products.
Free Items

Free items help attract customers to a bank. Some consumers may be persuaded to switch banks
with the promise of a small gift certificate or household item. Other customers may respond to
free money for opening an account with a certain minimum balance or opening a premium
account with the bank. To reduce the amount of free items given away, banks may partner with a
local car company or large retail chain and enter new customer names into a drawing for a free
car or large gift certificate. Banks must analyze the targeted customer base to determine what
type of free items will most appeal to potential customers.
Word of Mouth

Word of mouth has the greatest potential to attract customers to a bank and draw customers away
from a bank. Encourage current customers to direct friends and family members to the bank by
offering referral incentives in the form of lower fees or cash rewards. Become involved in the
community by sponsoring a local sports team, setting up a booth at a local festival or providing a
mobile ATM machine for a local event. Be sure to provide stellar customer service to all current
users because a customer sharing a negative experience about the bank may quickly erase the
effect of any positive marketing efforts in a community.
Credit Cards

Offer specialized credit cards for consumers, such as cards designed for college students, small-
business owners or mature bankers. Cards with low interest rates and few fees typically attract
more customers. A card that offers rewards or a cash-back program may also appeal to
consumers. Offer a line of prepaid debit cards, and encourage parents to set up accounts for their
children or allow teens to become authorized users on a parent's credit card. Teens who have
already established a relationship with a bank may be more likely to continue working with that
bank when they turn 18 or begin earning their own income.
Incorporating Technology

With the popularity of the Internet and smart phones, many customers have turned to doing the
majority of their banking online. Update your bank's website to make it easy to navigate, and
allow users to transfer money and view account information from multiple locations. Include
descriptions of all products on your website to give potential customers the information they
need to make a decision. Offer online customer service options for customers who do not have
time to visit a branch or wait on the phone.
 CHAPTER-4
FINANCIAL ANALYSIS

 Sources of Finances
Capital Structure (ICICI Bank)
Period Instrument Authorized Issued Capital -PAIDUP-
Capital
From To (Rs. cr) (Rs. cr) Shares (nos) Face Value Capit
2016 2017 Equity Share 1275 1164.9 5824476135 2 1164
2015 2016 Equity Share 1275 1162.95 5814768430 2 1162.
2014 2015 Equity Share 1275 1159.45 5797244645 2 1159.
2013 2014 Equity Share 1275 1154.99 1154987255 10 1154.
2012 2013 Equity Share 1275 1153.58 1153581715 10 1153.
2011 2012 Equity Share 1275 1152.71 1152714442 10 1152.
2010 2011 Equity Share 1275 1151.77 1151772372 10 1151.
2009 2010 Equity Share 1275 1114.85 1114845314 10 1114.
2008 2009 Equity Share 1275 1113.25 1113250642 10 1113.
2007 2008 Equity Share 1275 1112.69 1112687495 10 1112.
2006 2007 Equity Share 1000 899.27 899266672 10 899.
2005 2006 Equity Share 1000 889.82 889823901 10 889.
2004 2005 Equity Share 1550 616.39 616391905 10 616.
2003 2004 Equity Share 1550 613.02 613021301 10 613.
2001 2002 Equity Share 300 220.36 220358680 10 220.
2000 2001 Equity Share 300 196.82 196818880 10 196.
1999 2000 Equity Share 300 196.82 196818880 10 196.

 Ratio Analysis
Key Financial Ratios of ICICI Bank ------------------- in Rs. Cr. -------------------

Mar 17 Mar 16 Mar 15 Mar 14 Mar 13

Per Share Ratios

Basic EPS (Rs.) 16.84 16.75 19.32 84.99 72.20
Diluted Eps (Rs.) 16.77 16.65 19.13 84.65 71.93
Cash EPS (Rs.) 18.12 17.92 20.41 89.92 76.42
Book Value
[Excl. Reval
166.35 149.45 138.71 633.86 578.22
Reserve]/Share
(Rs.)
Book Value [Incl.
Reval
171.57 154.30 138.71 633.86 578.22
Reserve]/Share
(Rs.)
Dividend/Share
2.50 5.00 5.00 23.00 20.00
(Rs.)
Operating
Revenue / Share 92.96 90.68 84.66 382.48 347.39
(Rs.)
Net Profit/Share
16.82 16.72 19.27 84.94 72.17
(Rs.)
Per Employee Ratios
Interest Income/
6,675,329.33 7,307,161.04 7,401,381.02 6,116,655.05 6,457,036.48
Employee (Rs.)
Net Profit/
1,208,087.19 1,347,597.82 1,684,887.74 1,358,302.69 1,341,411.86
Employee (Rs.)
Business/
117,623,925.97 118,696,176.03 112,938,140.26 92,849,708.72 93,911,715.27
Employee (Rs.)
Per Branch Ratios
Interest Income/
111,662,431.55 118,515,583.82 121,212,691.11 117,714,236.08 129,276,119.03
Branch (Rs.)
Net Profit/
20,208,434.23 21,856,825.39 27,593,468.89 26,140,359.71 26,856,363.55
Branches (Rs.)
Business/ 1,967,569,379.3 1,786,880,645.3
1,925,145,282.02 1,849,592,105.93 1,880,203,421.94
Branches (Rs.) 8 5
Key Performance Ratios
Net Profit Margin
18.09 18.44 22.76 22.20 20.77
(%)
Operating Profit
-17.91 -10.61 -2.03 -1.39 -0.05
Margin (%)
Return on
1.26 1.34 1.72 1.64 1.55
Assets (%)
Return on Equity
10.11 11.19 13.89 13.39 12.48
/ Networth (%)
Net Interest
2.81 2.94 2.94 2.77 2.58
Margin (X)
Cost to Income
42.68 39.40 32.70 31.30 28.67
(%)
Interest
Income/Total 7.01 7.31 7.59 7.42 7.46
Assets (%)
Non-Interest
Income/Total 2.52 2.12 1.88 1.75 1.55
Assets (%)
Operating
Profit/Total -1.25 -0.77 -0.15 -0.10 0.00
Assets (%)
Operating
Expenses/Total 1.91 1.75 1.77 1.73 1.67
Assets (%)
Interest 4.20 4.37 4.65 4.65 4.88
Expenses/Total
Assets (%)
Valuation Ratios
Enterprise Value
767,318.40 706,700.41 691,147.70 608,705.91 539,497.75
(Rs. Cr)
EV Per Net
14.17 13.40 14.08 13.78 13.46
Sales (X)
Price To Book
1.67 1.58 2.27 1.96 1.81
Value (X)
Price To Sales
2.98 2.61 3.72 3.26 3.01
(X)
Retention Ratios
100.00 70.10 74.06 72.92 72.28
(%)
Earnings Yield
0.06 0.07 0.06 0.07 0.07
(X)

 Net Profit or Net Balance Sheet

Balance Sheet

Standalone Balance Sheet ------------------- in Rs. Cr. -------------------

  Mar '17 Mar '16 Mar '15 Mar '14 Mar '13

  12 mths 12 mths 12 mths 12 mths 12 mths

Capital and Liabilities:

Total Share Capital 1,165.11 1,163.17 1,159.66 1,155.04 1,153.64
Equity Share Capital 1,165.11 1,163.17 1,159.66 1,155.04 1,153.64
Share Application
6.26 6.70 7.44 6.57 4.48
Money
Reserves 95,737.57 85,748.24 79,262.26 72,051.71 65,547.84
Net Worth 96,908.94 86,918.11 80,429.36 73,213.32 66,705.96
Deposits 490,039.06 421,425.71 361,562.73 331,913.66 292,613.63
Borrowings 147,556.15 174,807.38 172,417.35 154,759.05 145,341.49
Total Debt 637,595.21 596,233.09 533,980.08 486,672.71 437,955.12
Other Liabilities &
34,245.16 34,726.44 31,719.86 34,755.55 32,133.60
Provisions
Total Liabilities 768,749.31 717,877.64 646,129.30 594,641.58 536,794.68
  Mar '17 Mar '16 Mar '15 Mar '14 Mar '13

  12 mths 12 mths 12 mths 12 mths 12 mths

Assets
Cash & Balances with
31,702.41 27,106.09 25,652.91 21,821.83 19,052.73
RBI
Balance with Banks,
44,010.66 32,762.65 16,651.71 19,707.77 22,364.79
Money at Call
Advances 464,232.08 435,263.94 387,522.07 338,702.65 290,249.44
Investments 161,506.55 160,411.80 186,580.03 177,021.82 171,393.60
Gross Block 7,805.21 7,576.92 4,725.52 4,678.14 4,647.06
Revaluation Reserves 3,042.14 2,817.47 0.00 0.00 0.00
Net Block 4,763.07 4,759.45 4,725.52 4,678.14 4,647.06
Other Assets 62,534.55 57,573.70 24,997.05 32,709.39 29,087.07
Total Assets 768,749.32 717,877.63 646,129.29 594,641.60 536,794.69

Contingent Liabilities 1,053,616.90 922,453.51 868,190.58 794,965.35 802,383.84

Book Value (Rs) 166.37 149.47 138.72 634.60 578.65
 CHAPTER – 5
Key learning from the company
and Recommendations

 Performance Analysis of the company

 Net NPA ratio decreased from 4.86% at June 30, 2017 to 4.43% at September 30,
2017

 410 basis points increase in provisioning coverage ratio to 59.3% (including

cumulative prudential/ technical write-offs), further strengthening the balance sheet

 21% year-on-year growth in savings account deposits; CASA ratio at 49.5% at

September 30, 2017

 19% year-on-year growth in retail portfolio

 Net interest margin at 3.27% in Q2-2018 compared to 3.13% in Q2-2017

 Standalone profit after tax of ₹ 2,058 crore (US$ 315 million) for quarter ended
September 30, 2017 (Q2-2018)
 Consolidated profit after tax of ₹ 2,071 crore (US$ 317 million) for Q2

 REASON FOR DIVERCIFICATION OF COMPANY

MUMBAI: 
HIGHLIGHTS
The one millionth vehicle, a red colored A-star, left the Mundra coast line along with 2,200 other
vehicles for various international destinations including Switzerland, Malta, Sweden in Europe
and Algeria, Egypt and Morocco in the non-European destinatio
 ICICI Bank shares rose 1.5 per cent on Monday as the bank reported a strong growth in profits.
Here are some pointers to watch

• Profitability improving: ICICI bank reported a net interest margin of 3 per cent in March 2012
quarter. This is perhaps the first time the bank has touched that mark in several quarters. The
bank’s management has told analysts that it could only improve on these numbers going forward.
Net interest margin is the difference between the cost of borrowing and cost of lending of the
bank. It is an important number to assess profitability of banks. HDFC Bank consistently clocks
over 4 per cent. This is why the market gives HDFC Bank more value than ICICI Bank. ICICI
Bank market cap is Rs.1,01,979 crore while HDFC Bank’s market cap is Rs. 1,27,941 crore.

• Diversified and bigger loan book: Under K V Kamath’s leadership, ICICI Bank grew its retail
loans aggressively. Since Chanda Kochhar took over from him, this has declined consistently.
The bank has focused on growing other loans to diversify assets. In March 2012 quarter, retail
loans accounted for 35 per cent of the total loans given by the bank. This was over 38 per cent in
the March 2011 quarter. The number was close to 50 per cent three years ago. Corporate and
project finance loans rose to 28.3 per cent from around 26 per cent while international loans
grew to 27 per cent from 25 per cent. The total size of the loan book for ICICI Bank stands
at Rs. 2,53,730 crore, over 25 per cent higher than in the quarter ended March 2011.

• Asset quality improving: The non-performing assets or NPAs as a percentage of total loans fell
to 0.62 per cent at the end of March 2012 quarter against 0.94 per cent in the year ago period.
RBI has expressed a concern about the rising level of non-performing and restructured loans in
the system. Overall, For ICICI Bank, there is a sharp jump of 116 per cent in loans that went for
restructuring. They now account for 1.7 pe rcent of the total loan book at Rs. 4,256 crore.
However, the bank had warned analysts early and hence the stock market has not reacted to the
number.
• CASA ratio rising: The current account-savings account (CASA) ratio stood at 43.6 per cent.
This means 43.6 per cent of the total deposits of Rs. 2,60,000 crore were current and savings
deposits. This is due to over 14 per cent rise in the savings account balances. Two years ago, the
CASA for ICICI bank was less than 30 per cent. A high CASA ratio is good for the bank as
banks pay no interest on current account deposits and least interest on savings accounts. This is
the cheapest source of money for banks.
• Brokers are upgrading the stock: “We recommend BUY on ICICI Bank with a price target
of Rs.1103,” said Kotak Securities. “In our opinion, the quarter’s been a good one; numbers are
up, enough justification for the market to at least start talking about a re-rating; we maintain our
positive bias on the stock, and our target price of Rs1035,” said Citi Global markets. ICICI
Bank’s current share price is Rs. 885.6

 Comment on Organizational Leadership

 Organizational leadership is the ability to support and guide people to achieve the goals of
an organization. In my opinion, there are some characteristics of organizational leadership
that are important for all profit or non-profit organizations. Firstly, a leader must
understand the culture and behavior of the organization they are working for. This
includes but not limited to company’s policies, code of ethics and behaviors of employees.

The leader also needs to have knowledge in his field as well as in leadership. This can be acquired
through an academic degree or working experience. If he is not an expert in the field, he should know
how to build a team that people could complement the weakness of each other. With the knowledge, he
would be able to inspire employees to perform their jobs better. Besides, the leader should show his
vision by creating developing plans for the organization and those plans need to be viable so that they will
not waste resources.

 In the journal “Transformational leadership and organizational culture” by Bernard

M.Bass and Bruce J. Avolio, the researchers mentioned some characteristics of
organizational leadership. Organizations require leaders to have cultural building
and strategic thinking to build vision.

Transformational leadership has four separate characteristics including idealized influence,

inspirational motivation, intellectual stimulation and individualized consideration. Idealized
influence provides a role model of high ethical behavior and gain respects, trust from followers.
Inspirational motivation is the ability of leaders to make their vision appealing and provide the
energy to followers to drive a group forward. Leaders will need to have communication skills to
make the vision understandable and engaging so that followers can be inspired and willing to
focus on the tasks. Intellectual stimulation requires the leader to stimulate and encourage the
creativity from their followers. Leaders will always need to learn more from unexpected situation
and followers’ questions, therefore, they will be able to find better ways for their tasks.
Individualized consideration is how leaders can keep communication and support to each
follower, always listen to their concern, needs and appreciate contribution what they have made
to the group.

In contrast, transactional leadership has the two characteristics which are contingent reward and
management-by-exception styles of leadership. The leaders develop agreements with their
followers and provide them with positive and negative rewards based on their performance. The
leaders monitor the work of their followers and if there are deviations from standard operating
procedures, they can take corrective action to prevent mistakes.

Organization management is the process of organizing group of people to achieve a common

objective. In my opinion, there are three characteristics for the organizational management. The
first one is communication skill, this characteristic is very important because manager should be
able to explain decisions, giving directions to subordinates. Manager also needs the ability to
organize and motivate their staff to get the most out of them and they could reach their potential.
Another characteristic of management is integrity, manager should always the person that
employees could trust and rely on. Employees need manager to treat them fairly and ensure that
the business is being run in an ethical manner.

 Market Share / Growth Rate of the company

ICICI Bank, India's second-largest bank, is comfortable with a fall in market share as
itrebalances its liabilities, and will be well placed to capitalize on opportunities when
marketconditions improve, its chief executive said."We are allowing for a correction to happen
in our liability mix. If that warrants some recalibration of our market share, we are
comfortable," chief executive K.V. Kamath said in an interview for the Reuters India
Investment Summit.ICICI, which weathered a storm about its health when investors grew
worried about its exposure to the global financial crisis after the collapse of Lehman Brothers in
mid-September, has slowed lending as loan defaults rise. ICICI's share of deposits and loans
in the Indian banking system has slid to 6.5 per cent as at September 2008 from 8.7 per cent in
March 2007, according to three brokerages polled by Reuters

 SWOT Analysis of the company

Strengths in the SWOT analysis of ICICI Bank

 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 ATM’s
 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,
D’damas etc
 ICICI bank has the longest working hours and additional services offering at ATM’s
which attracts customers
 Marketing and advertising strategies of ICICI have good reach compared to other banks
in India

Weaknesses in the SWOT analysis of ICICI Bank

 Customer support of ICICI section is not performing well in terms of resolving
complaints
 There are lot of consumer complaints filed against ICICI
 The ICICI bank has the most stringent policies in terms of recovering the debts and loans,
and credit payments. They employ third party agency to handle recovery management
 There are also complaints of customer assault and abuse while recovering and the credit
payment reminders are sent even before the deadlines which annoys the customers
 The bank service charges are comparatively higher
 The employees of ICICI are bank in maximum stress because of the aggressive policies
of the management to win ahead in the race. This may result in less productivity in future
years

Opportunities in the SWOT analysis of ICICI Bank

 Banking sector is expected to grow at a rate of 17% in the next three years
 The concept of saving in banks and investing in financial products is increasing in rural
areas as more than 62% percentage of India’s population is still in rural areas.
 As per 2010 data in TOI, the total number b-schools in India are more than 1500. This
can ensure regular supply of trained human power in financial products and banking
services
 Within next four years ICICI bank is planning to open 1500 new branches
 Small and non performing banks can be acquired by ICICI because of its financial
strength
 ICICI bank is expected to have 20% credit growth in the coming years.
 ICICI bank has the minimum amount of nonperforming assets

Threats in the SWOT analysis of ICICI Bank

 RBI allowed foreign banks to invest up to 74% in Indian banking
 Government sector banks are in urge of modernizing the capacities to ensure the
customers switching to new age banks are minimized
 HDFC is the major competitor for ICICI, and other upcoming banks
like AXIS, HSBC impose a major threat
 In rural areas the micro financing groups hold a major share
 Though customer acquisition is high on one side, the unsatisfied customers are increasing
and make them to switch to other banks
 CHAPTER-6
FINDING
 ICICI bank is largest private sector bank in India; recently it has acquired the
position of universal bank. Universal bank with extensive network of branches that
provide many different financial services and are principally engaged in
commercial banking, investment banking, securities and even insurance.
 ICICI bank offers innovative services to customers.
 ICICI bank believes in technological up gradation in distribution of its services.
 Customers of ICICI bank are satisfied with various services offered by ICICI bank.
 SBI also one of the successful private sector banks in India. It is the bank that has
pioneered many services first time in India. SBI was the first to offer a product
called one view by which customers are able to view their accounts in six banks on
one page on their website. SBI Bank also the pioneer, in introducing a product
called Net safe, which makes online shopping on net using debit card, making it
safer.
  Housing Loan, which is SBI’s domain, will no longer remain the same because;
ICICI bank is slowly capturing the housing loan market. In fact both the banks do
not have very significant difference in terms of marketing its products to customers
and also in terms of customer satisfaction.

CHAPTER-7
CONCLUSIONS

On the basis of various techniques applied for the financial analysis of ICICI Bank we can arrive
at a conclusion that the financial position and overall performance of the bank is satisfactory.
Though the income of the bank has increased over the period but not in the same pace as of
expenses. But the bank has succeeded in maintaining a reasonable profitability position.

The bank has succeeded in increasing its share capital also which has increased around50% in
the last 5 years. Individuals are the major shareholders. The major achievement of the bank has
been a tremendous increase in its deposits, which has always been its main objective. Fixed and
current deposits have also shown an increasing trend.

Equity shareholders are also enjoying an increasing trend in the return on their capital. Though
current assets and liabilities (current liquidity) of the bank is not so satisfactory but bank has
succeeded in maintaining a stable solvency position over the years. As far as the ratio of external
and internal equity is concerned, it is clear that bank has been using more amount of external
equity in the form of loans and borrowings than owner’s equity. Bank’s investments are also
showing an increasing trend. Due to increase in advances, the interest received by the bank from
such advances is proving to be the major source of income for the bank.

SUGGESTIONS
 Bank can also think for improving its day to day services to its clients. Such services
can be approved by providing prompt services and showing and attitude of cooperation to
its clients. It will help to give a kind of confidences to the public and build a better image.

 To bank should simplify the procedure advances for quick disbursement.

 To achieve organizational success a proper independent working atmosphere should be

developed to achieve desired objective more effectively .

 Last but not least, bank should adopt branch automation experiment to control the
operational cost.

 Bank should try to finance more and more projects . Financing will help it to earn higher
amount of profits.