A Project Study Report On Training Undertaken at ICICI Bank & SBI Bank “Comparison of Microfinance products of ICICI & SBI bank

and Customer Perception towards these products” Submitted in partial fulfillment for the Award of degree Master of Business Administration

Submitted By: Shivanshu Vinay Krishna MBA Part 2nd year

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Preface

Decision making is a fundamental part of the research process. Decisions regarding that what you want to do, how you want to do, what tools and techniques must be used for the successful completion of the project. In fact it is the researcher’s efficiency as a decision maker that makes project fruitful for those who concern to the area of study. This project report has been prepared as per the requirement of the syllabus of MBA course structure under which the students are required to undertake project. My job during the making of project was to get an overview of availability of microfinance products provided by Banking sector. And how’s the lower availability of credits in market affect the Economy. The project title is-“Comparison of microfinance products of ICICI & SBI Bank and customer perception about these products.” Different types of micro products are provided by the banks. These micro finance products help to raise the level of economy and standard of poor people. Basically when we are playing with computer in every part of life, I used it in my project not for the ease of mine but for the ease of result explanation to those who will read this project. The project presents the role of microfinance products in life of persons. Now I take this opportunity to present the project report and sincerely hope that it will be as much knowledge enhancing to the readers as it was to use during the fieldwork and the completion of the report.

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ACKNOWLEDGEMENTS

To acknowledge all the persons who had helped for the fulfillment of the project is not possible for any researcher but in spite of all that it becomes the foremost responsibility of the researcher and also the part of research ethics to acknowledge those who had played a great role for the completion of the project. I express my sincere thanks to my project guide Mrs.Prachi Mam & Ms. Ity patni Mam and all my faculty members, Department of management studies, Poornima Group Of Colleges for guiding me right from the inception till the successful completion of the project. I sincerely acknowledge him for extending their valuable guidance, support of literature, critical review of project and the report and above all the moral support they had provided to me with all stages of this project. I would also like to acknowledge Mr. Amish Duggar for expending his valuable guidance. I would also like to thanks the supportive staff, Department of management studies, Poornima Group Of Colleges, for their help & cooperation throughout the project.

Shivanshu Vinay Krishna

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The fourth chapter comprehensive coverage of forecasting concepts and techniques which shows the analysis of data through tabulation. its organization structure. -4- . the productivity of any business concern depends upon the behavioural aspect of consumers. The report begins with the introduction to industry and after that introdustion of company. suggestion & conclusion part which is very much important after analysis is made.Executive Summary In the growing global competition. The fifth chapter deals with the findings. It also contains the objectives and limitations of the project. The second chapter is the introduction to the Micro finance Products which gives a brief idea regarding Micro Finance Products . types of data used and the data collection method. This topic deals with the customer’s perception towards other Micro finance Products from SBI and ICICI investment. its area of operation. It covers the sample procedure. etc. The third chapter. This project report contains 5 different chapters. its achievements. computation and graphical representation of data collected from survey. methodology adopted in preparing this report is mentioned.

The report is supported by figures and data wherever necessary with a view to assist the reader in developing a clear cut understanding of the topic.As we know that only analysis and conclusion is not the end of a research. In each of the five chapters as described above. I hope this report will be extremely useful for those it is meant. every chapter has been scheduled in a manner so as to enable the reader to appreciate the contents easily. so in the sixth chapter the recommendation part is covered which are made after a depth study of the analysis part of thesis. Constructive and healthy suggestions for improvements of the report will be great fully appreciated. INDUSTRY PROFILE -5- .

During the 3rd century AD. They contain a sum to be paid and then the order "May so and so pay the bearer such and such an amount". Fragments found in the Cairo Geniza indicate that in the 12th century cheques remarkably similar to our own were in use. Perhaps the most famous Italian bank was the Medici bank. banks in Persia and other territories in the Persian Sassanid Empire issued letters of credit known as Ṣakks. during the Mongol Empire. The date and name of the issuer are also apparent. The earliest known state deposit bank. Muslim traders are known to have used the cheque or ṣakk system since the time of Harun al-Rashid (9th century) of the Abbasid Caliphate. a tradition that was significantly strengthened in the 13th and 14th centuries. Banco di San Giorgio (Bank of St. was founded in 1407 at Genoa. The Bardi and Peruzzi families dominated banking in 14th century Florence. Venice and Genoa. George). In the 9th century. a Muslim businessman could cash an early form of the cheque in China drawn on sources in Baghdad. Banks can be traced back to ancient times even before money when temples were used to store commodities. to the rich cities in the north like Florence. -6- . set up by Giovanni Medici in 1397. establishing branches in many other parts of Europe. only smaller to save costs on the paper.History Banking in the modern sense of the word can be traced to medieval and early Renaissance Italy. Italy.

from Old Italian banca. Definition The definition of a bank varies from country to country. 350– 325 BC. which is specified as:    conducting current accounts for his customers paying cheques drawn on him. -7- . from Old High German banc. bank "bench. who used to make their transactions atop desks covered by green tablecloths. The earliest evidence of money-changing activity is depicted on a silver Greek drachm coin from ancient Hellenic colony Trapezus on the Black Sea. even today in Modern Greek the word Trapeza (Τράπεζα) means both a table and a bank. In fact. The coin shows a banker's table (trapeza) laden with coins. counter". and collecting cheques for his customers. a banker is defined as a person who carries on the business of banking. c. modern Trabzon. a pun on the name of the city.Origin of the word The word bank was borrowed in Middle English from Middle French banque. Under English common law. presented in the British Museum in London. Benches were used as desks or exchange counters during the Renaissance by Florentine bankers.

whether incorporated or not. When looking at these definitions it is important to keep in mind that they are defining the business of banking for the purposes of the legislation. including cheques. the definition above. and not necessarily in general. Examples of statutory definitions:  "Banking business" means the business of receiving money on current or deposit account. most of the definitions are from legislation that has the purposes of entry regulating and supervising banks rather than regulating the actual business of banking. it is actually functional. In particular. who carry on the business of banking' (Section 2. Interpretation). the making of advances to customers. In most common law jurisdictions there is a Bills of Exchange Act that codifies the law in relation to negotiable instruments. In other English common law jurisdictions there are statutory definitions of the business of banking orbanking business. paying and collecting cheques drawn by or paid in by customers. in many cases the statutory definition closely mirrors the common law one. and includes such other business as the Authority -8- . because it ensures that the legal basis for bank transactions such as cheques does not depend on how the bank is organised or regulated.Banco de Venezuela. and this Act contains a statutory definition of the termbanker: banker includes a body of persons. The business of banking is in many English common law countries not defined by statute but by common law. However. Although this definition seems circular.

Banking Standard activities Large door to an old bank vault.may prescribe for the purposes of this Act. Receiving from the general public money on current.  "Banking business" means the business of either or both of the following: 1. paying or collecting cheques drawn by or paid in by customers Since the advent of EFTPOS (Electronic Funds Transfer at Point Of Sale). Interpretation). This has led legal theorists to suggest that the cheque based definition should be broadened to include financial institutions that conduct current accounts for customers and enable customers to pay and be paid by third parties. (Banking Act (Singapore). the cheque has lost its primacy in most banking systems as a payment instrument. Section 2. even if they do not pay and collect cheques... savings or other similar account repayable on demand or within less than [3 months] . 2. direct credit. or with a period of call or notice of less than that period. -9- . deposit. direct debit and internet banking.

and collecting cheques deposited to customers' current accounts. paying cheques drawn by customers on the bank. Banks also enable customer payments via other payment methods such as telegraphic transfer. Banks borrow most funds from households and non-financial businesses. cash management trusts and other non-bank financial institutions in many cases provide an adequate substitute to banks for lending savings too. and ATM. Banks lend money by making advances to customers on current accounts. and by issuing debt securities such as banknotes and bonds. Non-banks that provide payment services such as remittance companies are not normally considered an adequate substitute for having a bank account. Channels Banks offer many different channels to access their banking and other services:  ATM is a machine that dispenses cash and sometimes takes deposits without the need for a human bank teller. individuals and governments. and a bank account is considered indispensable by most businesses. Banks provide almost all payment services.10 - . by makinginstallment loans. and money market funds. but non-bank lenders provide a significant and in many cases adequate substitute for bank loans. Some ATMs provide additional services. by accepting term deposits. and lend most funds to households and non-financial businesses. and by investing in marketable debt securities and other forms of money lending. Banks borrow money by accepting funds deposited on current accounts.Banks act as payment agents by conducting checking or current accounts for customers. A branch is a retail location Call center   . EFTPOS.

Video banking can be performed via purpose built banking transaction machines (similar to an Automated teller machine). The main method is via charging interest on the capital it lends out to customer. payments etc. by sending out statements Mobile banking is a method of using one's mobile phone to conduct banking transactions Online banking is a term used for performing transactions.      Business model A bank can generate revenue in a variety of different ways including interest. Fees and financial advice constitute a more stable revenue stream and banks . profitability from lending activities has been cyclical and dependent on the needs and strengths of loan customers and the stage of the economic cycle. or via a videoconference enabled bank branch. often visiting customers at their homes or businesses Telephone banking is a service which allows its customers to perform transactions over the telephone without speaking to a human Video banking is a term used for performing banking transactions or professional banking consultations via a remote video and audio connection. and the level of interest it charges in its lending activities. Mail: most banks accept check deposits via mail and use mail to communicate to their customers.11 - . Historically. over the Internet Relationship Managers. mostly for private banking or business banking. transaction fees and financial advice. e. This difference is referred to as the spread between the cost of funds and the loan interest rate. The bank profits from the differential between the level of interest it pays for deposits and other sources of funds.g.

with convenience of easy credit.have therefore placed more emphasis on these revenue lines to smooth their financial performance. This helps in making profit and facilitates economic development as a whole. they have sought to increase the methods of payment processing available to the general public and business clients.12 - . this includes the Gramm-Leach-Bliley Act. These products include debit cards. This helps to offset the losses from bad loans. there is also increased risk that consumers will mismanage their financial resources and accumulate excessive debt. the banks hope. lowers the price of loans to those who have better credit histories. In the past 20 years American banks have taken many measures to ensure that they remain profitable while responding to increasingly changing market conditions. which allows banks again to merge with investment and insurance houses. prepaid cards. which means charging higher interest rates to those customers that are considered to be a higher credit risk and thus increased chance of default on loans. they have expanded the use of risk-based pricing from business lending to consumer lending. Second. it is still common to deal strictly in cash. Merging banking. Banks make money from card products through interest payments and fees charged to consumers andtransaction fees to companies that accept the cards. and offers credit products to high risk customers who would otherwise be denied credit. will also increase profitability). and credit cards. Third. including carrying suitcases filled with cash to purchase a home). They make it easier for consumers to conveniently make transactions and smooth their consumption over time (in some countries with underdeveloped financial systems. investment. and insurance functions allows traditional banks to respond to increasing consumer demands for "onestop shopping" by enabling cross-selling of products (which. smart cards. . First. However.

An interior of a branch of National Westminster Bank on Castle Street.Liverpool . West Yorkshire. now a modern retail bank in Leeds.Products A former building society.13 - .

14 - . and how well these risks are managed and understood is a key driver behind profitability. . commodities. Some of the main risks faced by banks include:  Credit risk: risk of loss arising from a borrower who does not make payments as promised.  Liquidity risk: risk that a given security or asset cannot be traded quickly enough in the market to prevent a loss (or make the required profit). interest rates. derivatives) Term loan Risk and capital Banks face a number of risks in order to conduct their business. and how much capital a bank is required to hold.Retail         Business loan Cheque account Credit card Home loan Insurance advisor Mutual fund Personal loan Savings account Wholesale       Capital raising (Equity / Debt / Hybrids) Mezzanine finance Project finance Revolving credit Risk management (FX.

This enables banks to economise on reserves held for settlement of payments. Netting and settlement of payments – banks act as both collection and paying agents for customers. It also enables the offsetting of payment flows between geographical areas. These claims on banks can act as money because they are negotiable or repayable on demand. in the form of banknotes and current accounts subject to cheque or payment at the customer's order.  The capital requirement is a bank regulation. Issue of money. in the case of banknotes. be presented with. or by drawing a cheque that the payee may bank or cash. reducing the cost of settlement between them. Market risk: risk that the value of a portfolio. either an investment portfolio or a trading portfolio. which sets a framework on how banks and depository institutions must handle their capital. present. 2.15 - .  Operational risk: risk arising from execution of a company's business functions. since inward and outward payments offset each other. Credit intermediation – banks borrow and lend back-to-back on their own account as middle men. They are effectively transferable by mere delivery. participating in interbank clearing and settlement systems to collect. Banks in the economy Economic functions The economic functions of banks include: 1. 3. The categorization of assets and capital is highly standardized so that it can be risk weighted (see riskweighted asset). . and pay payment instruments. and hence valued at par. will decrease due to the change in value of the market risk factors.

accepting deposits and issuing banknotes) and redemptions (e. withdrawals and redemptions of banknotes).16 - . Maturity transformation – banks borrow more on demand debt and short term debt. but provide more long term loans. the Japanese banking crisis during the 1990s. the U.4. With a stronger credit quality than most other borrowers. . Bank crisis Banks are susceptible to many forms of risk which have triggered occasional systemic crises. credit risk (the chance that those who owe money to the bank will not repay it). However. to raise the funding it needs to continue to operate. Prominent examples include the bank run that occurred during the Great Depression. wholesale cash markets and securities markets). investing in marketable securities that can be readily converted to cash if needed. this puts the note holders and depositors in an economically subordinated position. Credit quality improvement – banks lend money to ordinary commercial and personal borrowers (ordinary credit quality). if the bank gets into difficulty and pledges assets as security. banks can do this by aggregating issues (e. 5. they borrow short and lend long. if rising interest rates force it to pay relatively more on its deposits than it receives on its loans). and the subprime mortgage crisis in the 2000s.g.S. when one or more risks have materialized for a banking sector as a whole. banknotes and deposits are generally unsecured. These include liquidity risk (where many depositors may request withdrawals in excess of available funds). and interest rate risk (the possibility that the bank will become unprofitable. The improvement comes from diversification of the bank's assets and capital which provides a buffer to absorb losses without defaulting on its obligations. and raising replacement funding as needed from various sources (e.g.g. In other words. Banking crises have developed many times throughout history. but are high quality borrowers. maintaining reserves of cash. Savings and Loan crisis in the 1980s and early 1990s.

000). 56% in 2008/2009.3bn in 2009. The United States has the most banks in the world in terms of institutions (7.4 trillion while profits declined by 85% to $115bn. resulting in a large number of small to medium-sized institutions in its banking system.000 branches. while the share of US banks increased from 11% to 13%. This is an indicator of the geography and regulatory structure of the USA.000 banks in the world grew by 6. In 2004.000 branches—more than double the 15. ABC:24000+) with an additional 140 smaller banks with an undetermined number of branches. As of Nov 2009. even if they are not repayable to the customer's order—although money lending. Regulation Currently in most jurisdictions commercial banks are regulated by government entities and require a special bank licence to operate.8% in the 2008/2009 financial year to a record $96. China's top 4 banks have in excess of 67. Growth in assets in adverse market conditions was largely a result of recapitalisation. BOC:12000+.000 branches in the UK. by itself. and Italy each had more than 30. France. Germany. down from 61% in the previous year.Size of global banking industry Assets of the largest 1. Fee revenue generated by global investment banking totalled $66.17 - . Usually the definition of the business of banking for the purposes of regulation is extended to include acceptance of deposits. CCB:13000+.000 branches (ICBC:18000+.085 at the end of 2008) and possibly branches (82. up 12% on the previous year. Japan had 129 banks and 12. EU banks held the largest share of the total. is generally not included in the definition. Asian banks' share increased from 12% to 14% during the year. .

e.g. the bank owes the balance to the customer. Banking law is based on a contractual analysis of the relationship between the bank (defined above) and the customer—defined as any entity for which the bank agrees to conduct an account. However. In the UK. . the extent that the customer is indebted to the bank. and to credit the proceeds to the customer's account. for example. or the law demands it. 4. customer's account as the customer's agent. to The bank must not disclose details of transactions through the customer's account is just an aspect of the same credit relationship. there is a public duty to disclose. being either a publicly or privately governed central bank. from the customer. 3. 5. The bank agrees to pay the customer's cheques up to the amount The bank may not pay from the customer's account without a mandate The bank agrees to promptly collect the cheques deposited to the standing to the credit of the customer's account. the regulator is typically also a participant in the market. The bank account balance is the financial position between the bank and the customer: when the account is in credit. account—unless the customer consents. in some countries this is not the case. The law implies rights and obligations into this relationship as follows: 1. plus any agreed overdraft limit. The bank has a right to combine the customer's accounts. the UK government's central bank. the Financial Services Authority licences banks. Central banks also typically have a monopoly on the business of issuing banknotes. a cheque drawn by the customer.18 - . the customer owes the balance to the bank. when the account is overdrawn. 7.Unlike most other regulated industries. 6. 2. and some commercial banks (such as theBank of Scotland) issue their own banknotes in addition to those issued by the Bank of England. since each The bank has a lien on cheques deposited to the customer's account. the bank's interests require it.

Minimum capital Minimum capital ratio 'Fit and Proper' requirements for the bank's controllers. days. providing services to mid-market . The bank must not close a customer's account without reasonable notice. 4.19 - . The requirements for the issue of a bank licence vary between jurisdictions but typically include: 1. Some types of financial institution. 3. such as building societies and credit unions. directors. may be partly or wholly exempt from bank licence requirements. since cheques are outstanding in the ordinary course of business for several These implied contractual terms may be modified by express agreement between the customer and the bank. 2. The statutes and regulations in force within a particular jurisdiction may also modify the above terms and/or create new rights. and therefore regulated under separate rules. business banking. Types of banks Banks' activities can be divided into retail banking. obligations or limitations relevant to the bank-customer relationship. owners.8. dealing directly with individuals and small businesses. Approval of the bank's business plan as being sufficiently prudent and or senior officers plausible.

business. Salt Lake City 1908 . or are non-profit organizations. some are owned by government. private banking. However. private enterprises. providing wealth management services to high net worth individuals and families. and investment banking. directed at large business entities.20 - . Types of retail banks National Bank of the Republic. corporate banking. relating to activities on the financial markets. Most banks are profit-making.

the U. . Congress required that banks only engage in banking activities. Salt Lake City 1911  Commercial bank: the term used for a normal bank to distinguish it from an investment bank.21 - . After the Great Depression. some use the term "commercial bank" to refer to a bank or a division of a bank that mostly deals with deposits and loans from corporations or large businesses. Since the two no longer have to be under separate ownership.ATM Al-Rajhi Bank National Copper Bank.S. whereas investment banks were limited to capital market activities.

credits and insurances for individuals or small and medium-sized enterprises. Offshore banks: banks located in jurisdictions with low taxation and regulation. Many offshore banks are essentially private banks. and their immediate families. residents of a defined neighborhood. Postal savings banks: savings banks associated with national postal systems. savings banks took their roots in the 19th or sometimes even in the 18th century. however. providing local and regional outreach—and by their socially responsible approach to business and society. savings banks were created on public initiative.22 - . Ethical banks: banks that prioritize the transparency of all operations and make only what they consider to be socially-responsible investments. Community development banks: regulated banks that provide financial services and credit to under-served markets or populations. Apart from this retail focus. Savings bank: in Europe. in others. they also differ from commercial banks by their broadly decentralised distribution network. membership is restricted to employees of a particular company. Community banks: locally operated financial institutions that empower employees to make local decisions to serve their customers and the partners. Credit unions: not-for-profit cooperatives owned by the depositors and often offering rates more favorable than for-profit banks. Typically. Private banks: banks that manage the assets of high net worth individuals. Their original objective was to provide easily accessible savings products to all strata of the population. Historically a minimum of USD 1 million was required to open an account. over the last years many private banks have lowered their entry hurdles to USD 250.         . Nowadays. European savings banks have kept their focus on retail banking: payments.000 for private investors. In some countries. Building societies and Landesbanks: institutions that conduct retail banking. socially committed individuals created foundations to put in place the necessary infrastructure. members of a certain labor union or religious organizations. savings products.

They generally provide liquidity to the banking system and act as the lender of last resortin event of a crisis. they tend not to invest in new companies. engage in several of these activities. The modern definition.23 - . make markets. These big banks are very diversified groups that. and advise corporations on capital market activities such as mergers and acquisitions. A Direct or Internet-Only bank is a banking operation without any physical bank branches. also distribute insurance— hence the term bancassurance. . Other types of banks  Central banks are normally government-owned and charged with quasi- regulatory responsibilities. a portmanteau wordcombining "banque or bank" and "assurance". Types of investment banks  Investment banks "underwrite" (guarantee the sale of) stock and bond issues. or controlling the cash interest rate. such as supervising commercial banks. trade for their own accounts. Unlike venture capital firms. however. Merchant banks were traditionally banks which engaged in trade finance.  Both combined  Universal banks. signifying that both banking and insurance are provided by the same corporate entity. conceived and implemented wholly with networked computers. more commonly known as financial services companies. among other services. refers to banks which provide capital to firms in the form of shares rather than loans.

the bank earns profit (markup) and fees on the financing facilities that it extends to customers. Instead. All banking activities must avoid interest.24 - . . This form of banking revolves around several well-established principles based on Islamic canons. a concept that is forbidden in Islam. Islamic banks adhere to the concepts of Islamic law.

The Indian banking market is growing at an astonishing rate. Every bank has a compliance department.25 - .  Other Pra.Banking Sector Banking in a traditional sense is the business of accepting deposits of money from public for the purpose of lending and investment. That is why banks are expected to be prudent in their leading and investment activities. banks also offer financial services.  Investment and Insurance Services. In addition.Banking Products The business of banking is highly regulated since banks deal with money offered to them by the public and ensuring the safety of this public money is one of the prime responsibilities of any bank. which include:  Issuing demand draft & traveler’s cheque. An expanding economy. bill of exchange. and the processes followed are in compliance with the local regulations and the Bank’s corporate policy. which no other financial institution can offer. and technological innovations are all contributing to this growth. Debit Cards  Collection of cheques. with Assets expected to reach US$1 trillion by 2010.  Safe deposit lockers  Custodian services. . middle class.  Credit Cards. which is responsible to ensure that all the services offered by the bank. These deposits can have a distinct feature can be withdrawn by cheques.

. focusing on the expansion of retail and rural banking. It represent an important channel of collecting small saving from the households and ending it to the corporate sector. cars and other consumer durables and for investment purposes to individuals and the others. 1949  Foreign Exchange Management Act.The country’s middle class accounts for over 320 million people. which has resulted in innovative methods of offering new banking products and services. In correlation with the growth of the economy. banks do mot finance any speculative activity. rising income levels. Banks are now realizing the importance of being a big player and are beginning to focus their attention on mergers and acquisitions to take advantage of economies of scale and/or comply with Basel II The major regulations and act govern the banking business are: Banking Regulation Act.26 - . of for buying house property. Banking System Banking system is an integral sub-system of the financial system. Corporate etc. The depositor of banks is also assured of safety of their money by deploying some percentage of deposit in statutory reserves like SLR & CLR.1999  Indian Contract Act  Negotiable Instruments Act. However. Lending is risk taking. The Indian banking Industry is in the middle of an IT revolution. firms. and affordability of banking products are promising factors for continued expansion. regulation. increased standard of living. Players are becoming increasingly customer centric in their approach. 1881 Bank lend money either for productive purposes to individual.

50.27 - . Schedule Banks Must have paid-up capital and reserve of mot less than Rs. 1965. Non-Schedule Banks These are banks. The must satisfy the RBI than its affairs are mot conducted in a manner detrimental to the interests of its depositors. which are mot included in the second schedule of the Banking Regulations Act. These are further classified as follow:  State co-operative Banks  Commercial Banks Banks are further sub-divided as:- .000. 00.The Indian Banking system has the Reserve Bank of India (RBI) as the apex body for all matters relating to the banking system. It means they do mot satisfy the conditions laid down by that schedule. Classification of Banks 1. They are further classified as back:  Central co-operative banks and primary credit societies  Commercial Banks 2.

The Government of India Nationalized 14 private banks in 1969 and another 6 in the year 1980. State Bank of Patiala. agricultural alboras. C. State Bank of India and its Subsidiaries: This group comprises of the State Bank of India (SBI) and its seven subsidiaries viz. Indian Banks: These banks are companies registered in India under companies act. 1956. D. State Bank of Hyderabad. State Bank of Travancore. artisans and small entrepreneurs. It was Established to operate exclusively in rural areas to provide credit and other facilities to small and marginal armers. Other Nationalized Banks: This group consists of private sector bank that were national. B. Old private Sector Banks: . These are further classified into. Regional Rural Banks: The RBI established these in the year 1975 of Banking Commission.. A.1. State Bank of Bikaner & jaipur State Bank of Indore. their place of origin is in India.28 - .

29 - . . while on the other hand the private sector banks are consolidating themselves through mergers and acquisitions. excessive non Performing Assets (NPAs) and excessive governmental equity. which currently account for more than 78 percent of total banking industry assets are saddled with NPAs (a mind-boggling Rs 830 billion in 2000). New Private Sector Banks: These banks were started as profit oriented companies after the RBI opened the banking sector to the private sector. On the one hand. which are the mainstay of the Indian Banking System. lack of modern technology and a massive workforce while the new private sector banks are forging ahead and rewriting the traditional banking business model by way of their sheer innovation and service. Initially their branches slowly speard throughout the national as they grew. are in the process of shedding their flab in terms of excessive manpower. Foreign Banks: There are banks that were registered outside India and had origiented in a foreign country. falling revenues from traditional sources. PSBs. community organization or by a group of professionals for the cause of economic betterment in their area of operations. the PSBs. Current Scenario: The industry is currently in a transition phase. E.This group consists of Banks that were established by the privy states. these banks are monthly technology driven and betterment in their branches slowly spread throughout the nation as they grew. 3.

30 - . HDFC Bank’s merger with Times Bank. The private players however cannot match the PSB’s great reach. while the PSBs are still grappling with disgruntled employees in the aftermath of successful VRS schemes. Anagram Finance and Bank of Madurai. . ICICI Bank’s acquisition of ITC Classic. Therefore one of the means for them to combat the PSBs has been through the merger and acquisition (M& A) route. great size and access to low cost deposits. Over the last two years. For instance. anywhere banking. and mobile banking. phone banking. Automatic Teller Machines (ATMs) and combined various other services and integrated them into the mainstream banking arena. debit cards.The PSBs are of course currently working out challenging strategies even as 20 percent of their massive employee strength has dwindled in the wake of the successful Voluntary Retirement Schemes (VRS) schemes. Private sector Banks have pioneered internet banking. the industry has witnessed several such instances.

ABN AMRO. Section 42 (6) (a) of RBI Act 1934 lays down the condition of scheduled commercial banks. in the introduction part of the entire banking cosmos. It will discuss upon the matters with the birth of the banking concept in the country to new players adding their names in the industry in coming few years. The description along with a list of scheduled commercial banks is given on this page. HSBC. . Reserve Bank of India (RBI). ICICI. etc.INDIAN BANKING INDUSTRY The banking section will navigate through all the aspects of the Banking System in India. The last but not the least explains about the scheduled and unscheduled banks in India. the past has been well explained under three different heads namely: • • • History of Banking in India Nationalization of Banks in India Scheduled Commercial Banks in India The first deals with the history part since the dawn of banking system in India. has been well defined under three separate heads with one page dedicated to each bank. Government took major step in the 1969 to put the banking sector into systems and it nationalized 14 private banks in the mentioned year.31 - . The banker of all banks. However. This has been elaborated in Nationalization Banks in India. the Indian Banks Association (IBA) and top 20 banks like IDBI.

000. It was established in April 1935 with a share capital of Rs. 1934 was commenced on April 1. The Bank was constituted for the need of following: • • • To regulate the issue of banknotes To maintain reserves with a view to securing monetary stability and To operate the credit and currency system of the country to its advantage. the Governor and four Deputy Governors. The Government held shares of nominal value of Rs. Reserve Bank of India was nationalised in the year 1949. and four nominated Directors by the Central Government to represent the four local Boards with the headquarters at Mumbai. The general superintendence and direction of the Bank is entrusted to Central Board of Directors of 20 members.20. 2. The Reserve Bank of India Act. 100 each fully paid which was entirely owned by private shareholders in the begining.CENTRAL BANK OF INDIA RESERVE BANK OF INDIA (RBI): The central bank of the country is the Reserve Bank of India (RBI). The share capital was divided into shares of Rs. . Local Boards consist of five members each Central Government appointed for a term of four years to represent territorial and economic interests and the interests of co-operative and indigenous banks. 1934 (II of 1934) provides the statutory basis of the functioning of the Bank. Kolkata. The Act. 1935.32 - . Chennai and New Delhi. ten nominated Directors by the Government to give representation to important elements in the economic life of the country. 5 crores on the basis of the recommendations of the Hilton Young Commission. one Government official from the Ministry of Finance.

33 - . to receive and to make payments on behalf of the Government and to carry out their exchange remittances and other banking operations. The Reserve Bank has a separate Issue Department which is entrusted with the issue of currency notes. via. these provisions were considerably modified. Banker to Government The second important function of the Reserve Bank of India is to act as Government banker. 115 crores should be in gold. The system as it exists today is known as the minimum reserve system. of which at least Rs. 40 crores in value. Bank of Issue Under Section 22 of the Reserve Bank of India Act. Government of India rupee securities. The Reserve Bank has the obligation to transact Government business. to keep the cash balances as deposits free of interest. The remaining three-fifths of the assets might be held in rupee coins. the Bank has the sole right to issue bank notes of all denominations. the assets of the Issue Department were to consist of not less than two-fifths of gold coin. The assets and liabilities of the Issue Department are kept separate from those of the Banking Department. The Reserve Bank is agent of Central Government and of all State Governments in India excepting that of Jammu and Kashmir. gold bullion or sterling securities provided the amount of gold was not less than Rs. Since 1957. Originally. The distribution of one rupee notes and coins and small coins all over the country is undertaken by the Reserve Bank as agent of the Government. agent and adviser. The Reserve .Functions of Reserve Bank of India The Reserve Bank of India Act of 1934 entrust all the important functions of a central bank the Reserve Bank of India. 200 crores. eligible bills of exchange and promissory notes payable in India. Due to the exigencies of the Second World War and the post-was period. the Reserve Bank of India is required to maintain gold and foreign exchange reserves of Ra.

e. it has the power to influence the volume of credit created by banks in India. According to the provisions of the Banking Companies Act of 1949. The Bank makes ways and means advances to the Governments for 90 days. It acts as adviser to the Government on all monetary and banking matters. The Reserve Bank of India is armed with many more powers to control the Indian money market. Since commercial banks can always expect the Reserve Bank of India to come to their help in times of banking crisis the Reserve Bank becomes not only the banker's bank but also the lender of the last resort. Since 1956. By an amendment of 1962. the distinction between demand and time liabilities was abolished and banks have been asked to keep cash reserves equal to 3 per cent of their aggregate deposit liabilities. the licence can be cancelled by the Reserve Bank of .Bank of India helps the Government .both the Union and the States to float new loans and to manage public debt. every scheduled bank was required to maintain with the Reserve Bank a cash balance equivalent to 5% of its demand liabilites and 2 per cent of its time liabilities in India. The scheduled banks can borrow from the Reserve Bank of India on the basis of eligible securities or get financial accommodation in times of need or stringency by rediscounting bills of exchange. Every bank has to get a licence from the Reserve Bank of India to do banking business within India. It can do so through changing the Bank rate or through open market operations. Bankers' Bank and Lender of the Last Resort The Reserve Bank of India acts as the bankers' bank. the Reserve Bank of India can ask any particular bank or the whole banking system not to lend to particular groups or persons on the basis of certain types of securities. selective controls of credit are increasingly being used by the Reserve Bank. It makes loans and advances to the States and local authorities. Controller of Credit The Reserve Bank of India is the controller of credit i. The minimum cash requirements can be changed by the Reserve Bank of India. According to the Banking Regulation Act of 1949.34 - .

(c) It controls the banking system through the system of licensing. 10. Since 1935 the Bank was able to maintain the exchange rate fixed at lsh. its assets and liabilities. Every bank will have to get the permission of the Reserve Bank before it can open a new branch. therefore. Each scheduled bank must send a weekly return to the Reserve Bank showing. 6d. the Reserve Bank of India. Custodian of Foreign Reserves The Reserve Bank of India has the responsibility to maintain the official rate of exchange. The rate of exchange fixed was Re. The Reserve Bank has also the power to inspect the accounts of any commercial bank. in detail. According to the Reserve Bank of India Act of 1934. This power of the Bank to call for information is also intended to give it effective control of the credit system. (d) It acts as the lender of the last resort by providing rediscount facilities to scheduled banks.35 - .000. inspection and calling for information. (b) It controls the credit operations of banks through quantitative and qualitative controls. 1 = sh. the Bank was required to buy and sell at fixed rates any amount of sterling in lots of not less than Rs.certain stipulated conditions are not fulfilled. has the following powers: (a) It holds the cash reserves of all the scheduled banks.6d. As supereme banking authority in the country. though there were periods of extreme pressure in favour of or against .

After India became a member of the International Monetary Fund in 1946. The RBI is authorised to carry out periodical inspections of the banks and to call for returns and necessary information from them. at one time. amalgamation. reconstruction. 1934. which. the RBI has the responsibility of administering the exchange controls of the country. and the Banking Regulation Act.36 - . the Reserve bank has certain non-monetary functions of the nature of supervision of banks and promotion of sound banking in India. Besides maintaining the rate of exchange of the rupee. and liquidation.the rupee. 1949 have given the RBI wide powers of supervision and control over commercial and co-operative banks. Further. management and methods of working. Supervisory functions In addition to its traditional central banking functions. The Reserve Bank Act.F. branch expansion. The Bank now performs a varietyof developmental and promotional functions. the range of the Reserve Bank's functions has steadily widened. The supervisory functions of the RBI have helped a great deal in improving the standard of banking in India to develop on sound lines and to improve the methods of their operation. relating to licensing and establishments. the Reserve Bank has the responsibility of maintaining fixed exchange rates with all other member countries of the I. liquidity of their assets. the Reserve Bank has to act as the custodian of India's reserve of international currencies. were regarded as outside the normal scope of central banking. The nationalisation of 14 major Indian scheduled banks in July 1969 has imposed new responsibilities on the RBI for directing the growth of banking and credit policies towards more rapid development of the economy and realisation of certain desired social objectives. The Reserve Bank was asked to promote banking . Promotional functions With economic growth assuming a new urgency since Independence.M. The vast sterling balances were acquired and managed by the Bank.

Monetary functions of the RBI are significant as they control and regulate the volume of money and credit in the country. Equally important. issue of currency. the Reserve Bank of India set up the Agricultural Credit Department to provide agricultural credit. i. liquidity of their assets. Accordingly.. banker to the Government and to the money market. however. The Bank has developed the co-operative credit movement to encourage saving.habit. reconstruction and . The RBI has set up the Agricultural Refinance and Development Corporation to provide long-term finance to farmers. But only since 1951 the Bank's role in this field has become extremely important. control of bank credit. The promotion of sound banking in India is an important goal of the RBI. the Agricultural Refinance Corporation of India in 1963 and the Industrial Reconstruction Corporation of India in 1972. Classification of RBIs functions The monetary functions also known as the central banking functions of the RBI are related to control and regulation of money and credit. These institutions were set up directly or indirectly by the Reserve Bank to promote saving habit and to mobilise savings. the RBI has been given wide and drastic powers. the Reserve Bank has helped in the setting up of the IFCI and the SFC. the Industrial Development Bank of India also in 1964. are the non-monetary functions of the RBI in the context of India's economic backwardness. branch expansion. the Unit Trust of India in 1964. extend banking facilities to rural and semi-urban areas. and to provide industrial finance as well as agricultural finance. and establish and promote new specialised financing agencies. it set up the Deposit Insurance Corporation in 1962. amalgamation. inspection. The supervisory function of the RBI may be regarded as a non-monetary function (though many consider this a monetary function).e.37 - . to eliminate moneylenders from the villages and to route its short term credit to agriculture. management and methods of working. control of foreign exchange operations. under the Banking Regulation Act of 1949 . As far back as 1935.these powers relate to licencing of banks.

The RBI's powers of supervision have now been extended to non-banking financial intermediaries.liquidation. Commercial banks have developed into financially and operationally sound and viable units. Under the RBI's supervision and inspection.38 - . Since independence. the working of banks has greatly improved. the RBI has followed the promotional functions vigorously and has been responsible for strong financial support to industrial and agricultural development in the country. . particularly after its nationalisation 1949.

Financial Markets In the last decade. every governments of India took major steps in reforming the financial sector of the country. They grew rapidly in commercial banking and asset management business. The important achievements in the following fields is discussed under serparate heads:           Financial markets Regulators The banking system Non-banking finance companies The capital market Mutual funds Overall approach to reforms Deregulation of banking system Capital market developments Consolidation imperative Now let us discuss each segment seperately. Competition among financial intermediaries gradually helped the interest rates to decline. The borrowers did not pay high price while depositors had incentives to save. Private Sector Institutions played an important role. The real interest rate was maintained. they started making debt in the market.Financial and Banking Sector Reforms: The last decade witnessed the maturity of India's financial markets. Deregulation added to it. With the openings in the insurance sector for these institutions.39 - . Since 1991. . It was something between the nominal rate of interest and the expected rate of inflation.

The Government accepted the important role of regulators. PSBs are still dominating the commercial banking system. The RBI has given licences to new private sector banks as part of the liberalisation process. Development finance institutions . The PSBs will play an important role in the industry due to its number of branches and foreign banks facing the constrait of limited number of branches.Regulators The Finance Ministry continuously formulated major policies in the field of financial sector of the country. in order to achieve an efficient banking system. the onus is on the Government to encourage the PSBs to be run on professional lines. The Reserve Bank of India (RBI) has become more independant. Opinions are also there that there should be a superregulator for the financial services sector instead of multiplicity of regulators. retail trade.40 - . Hence. small business and agricultural finance. The banking system Almost 80% of the business are still controlled by Public Sector Banks (PSBs). Shares of the leading PSBs are already listed on the stock exchanges. Securities and Exchange Board of India (SEBI) and the Insurance Regulatory and Development Authority (IRDA) became important institutions. Many banks are successfully running in the retail and consumer segments but are yet to deliver services to industrial finance. The RBI has also been granting licences to industrial houses.

FIs's access to SLR funds reduced. The move to universal banking has started.2 crores. the gilt. the requirement of minimum net owned funds.edged market occupies . Non-banking finance companies In the case of new NBFCs seeking registration with the RBI. asset management and insurance through separate ventures. The secondary market was underdeveloped and lacked liquidity. the money market in India was narrow and circumscribed by tight regulations over interest rates and participants. Now they have to approach the capital market for debt and equity funds. DFIs such as IDBI and ICICI have entered other segments of financial services such as commercial banking. The DFHI is the principal agency for developing a secondary market for money market instruments and Government of India treasury bills. strengthening of existing instruments and setting up of the Discount and Finance House of India (DFHI). Until recently. Several measures have been initiated and include new money market instruments. Convertibility clause no longer obligatory for assistance to corporates sanctioned by term-lending institutions. has been raised to Rs. The RBI has introduced a liquidity adjustment facility (LAF) in which liquidity is injected through reverse repo auctions and liquidity is sucked out through repo auctions. The RBI conducts its sales of dated securities and treasury bills through its open market operations (OMO) window. Capital adequacy norms extended to financial institutions.41 - . On account of the substantial issue of government debt. Primary dealers bid for these securities and also trade in them.

which has led to retail investors deserting the stock markets. which started operations in June 1994 has a mandate to develop the secondary market in government securities. The biggest shock to the mutual fund industry during recent times was the insecurity generated in the minds of investors regarding the US 64 scheme. With the growth in the securities markets and tax . 1996 and amendments thereto. during recent times the stock markets have been constrained by some unsavoury developments. The Securities Trading Corporation of India (STCI).000 crores. Stamp duty is being withdrawn at the time of dematerialisation of debt instruments in order to encourage paperless trading. both Indian and foreign players. There has been a dramatic improvement in the country's stock market trading infrastructure during the last few years.42 - . The Unit Trust of India remains easily the biggest mutual fund controlling a corpus of nearly Rs. With the issuance of SEBI guidelines. the SEBI has now decided to concentrate on the development of the debt market. The capital market The number of shareholders in India is estimated at 25 million.70.an important position in the financial set. but its share is going down.up. Expectations are that India will be an attractive emerging market with tremendous potential. However. the industry had a framework for the establishment of many more players. only an estimated two lakh persons actively trade in stocks. Unfortunately. Long-term debt market: The development of a long-term debt market is crucial to the financing of infrastructure. After bringing some order to the equity market. Mutual funds The mutual funds industry is now regulated under the SEBI (Mutual Funds) Regulations.

An indication of the strength of the reformed Indian financial system can be seen from the way India was not affected by the Southeast Asian crisis. not a big bang one. They are introducing new products. The insurance industry is the latest to be thrown open to competition from the private sector including foreign players. The new players will need to bring in innovative products as well as fresh ideas on marketing and distribution. be essential. Overall approach to reforms The last ten years have seen major improvements in the working of various financial market participants. Good regulation will. The entry of foreign players has assisted in the introduction of international practices and systems. It is too early to conclude whether the erstwhile public sector monopolies will successfully be able to face up to the competition posed by the new players. improving disclosure standards and experimenting with new types of distribution. an active corporate debt market and a developed derivatives market). but it can be expected that the customer will gain from improved service. mutual funds started becoming popular. Foreign companies can only enter joint ventures with Indian companies. the cumulative effect of the developments since 1991 has been quite encouraging. of course. in order to improve the low per capita insurance coverage. Technology developments have improved customer service. . The government and the regulatory authorities have followed a step-by-step approach. On the whole. with participation restricted to 26 per cent of equity. Some gaps however remain (for example: lack of an interbank interest rate benchmark. setting new standards of customer service.advantages granted for investment in mutual fund units. The foreign owned AMCs are the ones which are now setting the pace for the industry.43 - .

Banks asked to set up asset liability management (ALM) systems. A credit information bureau being established to identify bad risks. Recovery of debts due to banks and the Financial Institutions Act. Derivative products . Deregulation of banking system Prudential norms were introduced for income recognition. financial stability cannot be ensured. and special recovery tribunals set up to facilitate quicker recovery of loan arrears. market and operational risks. The fate of the Fiscal Responsibility Bill remains unknown and high fiscal deficits continue.However. even with the best of regulation. Interest rates on the deposits and lending sides almost entirely were deregulated. which is often not the case in India. The phenomenon of rich industrialists and bankrupt companies continues. Bank lending norms liberalised and a loan system to ensure better control over credit introduced. New private sector banks allowed to promote and encourage competition. However. In order to reach the stipulated capital adequacy norms. PSBs were encouraged to approach the public for raising resources. punishment has to follow crime. financial liberalisation alone will not ensure stable economic growth. Government pre-emption of banks' resources through statutory liquidity ratio (SLR) and cash reserve ratio (CRR) brought down in steps.44 - . substantial capital were provided by the Government to PSBs. frauds cannot be totally prevented. Without fiscal control. In the case of financial institutions. Further. 1993 was passed. the political and legal structures hve to ensure that borrowers repay on time the loans they have taken. Some tough decisions still need to be taken. RBI guidelines issued for risk management systems in banks encompassing credit. asset classification. provisioning for delinquent loans and for capital adequacy.

Capital market developments The Capital Issues (Control) Act. the capital market regulator was established in 1992.such as forward rate agreements (FRAs) and interest rate swaps (IRSs) introduced. Foreign institutional investors (FIIs) were allowed to invest in Indian capital markets after registration with the SEBI. with nationwide stock trading and electronic display.45 - . SEBI. 1947. To reduce the cost of issue. Indian companies were permitted to access international capital markets through euro issues. Companies were required to disclose all material facts and specific risk factors associated with their projects while making public issues. office of the Controller of Capital Issues were abolished and the initial share pricing were decontrolled. SEBI reconstituted governing boards of the stock exchanges. subject to conditions. underwriting by the issuer were made optional. introduced capital adequacy norms for brokers. . Private mutual funds permitted The Depositories Act had given a legal framework for the establishment of depositories to record ownership deals in book entry form. Dematerialisation of stocks encouraged paperless trading. clearing and settlement facilities was established. Several local stock exchanges changed over from floor based trading to screen based trading. repealed. The National Stock Exchange (NSE). and made rules for making client or broker relationship more transparent which included separation of client and broker accounts. The practice of making preferential allotment of shares at prices unrelated to the prevailing market prices stopped and fresh guidelines were issued by SEBI.

Derivatives trading starts with index options and futures. Consolidation imperative Another aspect of the financial sector reforms in India is the consolidation of existing institutions which is especially applicable to the commercial banks. 100 were abolished. and anyway play only a niche role. Steps were taken to improve corporate governance based on the report of a committee. No one expected so many employees to take voluntary retirement from PSBs. In the case of insurance. 10 and Rs. 1999 issued for regulating new credit rating agencies as well as introducing a code of conduct for all credit rating agencies operating in India. A system of rolling settlements introduced.Buy back of shares allowed The SEBI started insisting on greater corporate disclosures. Private sector banks will be self consolidated while co-operative and rural banks will be encouraged for consolidation. A number of them can be merged. The SEBI (Credit Rating Agencies) Regulations. Standard denomination for equity shares of Rs. there is no need for 27 PSBs with branches all over India. the Life Insurance Corporation of India is a behemoth. SEBI issued detailed employee stock option scheme and employee stock purchase scheme for listed companies. In India the banks are in huge quantity. but the situation is different now. SEBI empowered to register and regulate venture capital funds. which at one time were much sought after jobs. First.46 - . while the four public sector general insurance companies will probably move towards . Companies given the freedom to issue dematerialised shares in any denomination. The merger of Punjab National Bank and New Bank of India was a difficult one.

In India organisations such as IDBI. Various forms of bancassurance are being introduced. The UTI is yet again a big institution. with the RBI having already come out with detailed guidelines for entry of banks into insurance. The LIC has bought into Corporation Bank in order to spread its insurance distribution network. HDFC and SBI are already trying to offer various services to the customer under one umbrella. a few trends are evident. it will take some time. the new buzzword internationally. We finally come to convergence in the financial sector. alliances between organisations may be effective. Where mergers may not be possible. There are a number of small mutual fund players in the private sector. Both banks and insurance companies have started entering the asset management business. It is not possible to play the role of the Oracle of Delphi when a vast nation like India is involved. ICICI. but the business being comparatively new for the private players. even though facing difficult times. . and most other public sector players are already exiting the mutual fund business. and the coming decade should be as interesting as the last one. even though it has not always been a success till date. This phenomenon is expected to grow rapidly in the coming years. Hi-tech and the need to meet increasing consumer needs is encouraging convergence. The pensions market is expected to open up fresh opportunities for insurance companies and mutual funds.47 - .consolidation with a bit of nudging. as there is a great deal of synergy among these businesses. However.

48 - .Major Banks in India                                ABN-AMRO Bank Abu Dhabi Commercial Bank American Express Bank Andhra Bank Allahabad Bank Axis Bank (Earlier UTI Bank) Bank of Baroda Bank of India Bank of Maharastra Bank of Punjab Bank of Rajasthan Bank of Ceylon BNP Paribas Bank Canara Bank Catholic Syrian Bank Central Bank of India Centurion Bank China Trust Commercial Bank Citi Bank City Union Bank Corporation Bank Dena Bank Deutsche Bank Development Credit Bank Dhanalakshmi Bank Federal Bank HDFC Bank HSBC ICICI Bank IDBI Bank Indian Bank                              Indian Overseas Bank IndusInd Bank ING Vysya Bank Jammu & Kashmir Bank JPMorgan Chase Bank Karnataka Bank Karur Vysya Bank Laxmi Vilas Bank Oriental Bank of Commerce Punjab National Bank Punjab & Sind Bank Scotia Bank South Indian Bank Standard Chartered Bank State Bank of India (SBI) State Bank of Bikaner & Jaipur State Bank of Hyderabad State Bank of Indore State Bank of Mysore State Bank of Saurastra State Bank of Travancore Syndicate Bank Taib Bank UCO Bank Union Bank of India United Bank of India United Western Bank Vijaya Bank Kotak Mahindra Bank  Yes Bank .

Mobile Banking. Custodial Services.Introduction of SBI The origin of the State Bank of India goes back to the first decade of the nineteenth century with the establishment of the Bank of Calcutta in Calcutta on 2 June 1806. the country’s oldest Bank and a premier in terms of balance sheet size. These three banks remained at the apex of modern banking in India till their amalgamation as the Imperial Bank of India on 27 January 1921. Their evolution was.49 - . General Insurance. Three years later the bank received its charter and was re-designed as the Bank of Bengal (2 January 1809). shaped by ideas culled from similar developments in Europe and England. market capitalization and profits is today going through a momentous phase of Change and Transformation – the two hundred year old Public sector behemoth is today stirring out of its Public Sector legacy and moving with an agility to give the Private and Foreign Banks a run for their money. . the three presidency banks came into existence either as a result of the compulsions of imperial finance or by the felt needs of local European commerce and were not imposed from outside in an arbitrary manner to modernise India's economy. Point of Sale Merchant Acquisition. it was the first joint-stock bank of British India sponsored by the Government of Bengal. A unique institution. The bank is entering into many new businesses with strategic tie ups – Pension Funds. The State Bank of India. Private Equity. Primarily Anglo-Indian creations. number of branches. Advisory Services. structured products etc – each one of these initiatives having a huge potential for growth. however. The Bank of Bombay (15 April 1840) and the Bank of Madras (1 July 1843) followed the Bank of Bengal. and was influenced by changes occurring in the structure of both the local trading environment and those in the relations of the Indian economy to the economy of Europe and the global economic framework.

The Bank is changing outdated front and back end processes to modern customer friendly processes to help improve the total customer experience. Today. SBI Factors. It presently has 82 foreign offices in 32 countries across the globe. SBI DFHI. Throughout all this change.forming a formidable group in the Indian Banking scenario. on whole sale banking capabilities to provide India’s growing mid / large Corporate with a complete array of products and services. today it offers the largest banking network to the Indian customer.000 villages in the next two years. SBI Life and SBI Cards . With four national level Apex Training Colleges and 54 learning Centres spread all over the country the Bank is continuously engaged in skill enhancement of its employees. the Bank is the largest provider of infrastructure debt and the largest arranger of external commercial borrowings in the country. It has also 7 Subsidiaries in India – SBI Capital Markets. In a recently concluded mass internal communication programme termed ‘Parivartan’ the . etc. the Bank is also attempting to change old mindsets. Some of the training programes are attended by bankers from banks in other countries. It is consolidating its global treasury operations and entering into structured products and derivative instruments. It is also focusing at the top end of the market. debit cards.The Bank is forging ahead with cutting edge technology and innovative new banking models. The bank is also looking at opportunities to grow in size in India as well as Internationally. to expand its Rural Banking base. attitudes and take all employees together on this exciting road to Transformation. The Bank is also in the process of providing complete payment solution to its clientele with its over 8500 ATMs.50 - . looking at the vast untapped potential in the hinterland and proposes to cover 100. SBICAP Securities. mobile banking. It is the only Indian bank to feature in the Fortune 500 list. With about 8500 of its own 10000 branches and another 5100 branches of its Associate Banks already networked. It is in the process of raising capital for its growth and also consolidating its various holdings. and other electronic channels such as Internet banking.

in order to serve the economy as a whole and rural sector in particular. The Act enabled the State Bank of India to make the eight former State-associated banks as its subsidiaries. . Until the Plan.000 employees in a period of 100 days using about 400 Trainers. The All India Rural Credit Survey Committee proposed the take over of the Imperial Bank of India. with its operations carried out by the 480 offices comprising branches. including the Imperial Bank of India. The bank served the heterogeneous financial needs of the planned economic development. Instead of serving as mere repositories of the community's savings and lending to creditworthy parties. The Plan aimed at serving the Indian economy in general and the rural sector of the country. Moreover. in particular. by banking purposefully. they were not equipped to respond to the growing needs of the economic revival taking shape in the rural areas of the country. in 1951.51 - . Later on. The State Bank of India emerged as a pacesetter. inherited from the Imperial Bank. the State Bank of India (Subsidiary Banks) Act was passed in 1959. The workshops fired the imagination of the employees with some other banks in India as well as other Public Sector Organizations seeking to emulate the Program. the All India Rural Credit Survey Committee recommended the formation of a state-partnered and statesponsored bank.Bank rolled out over 3300 two day workshops across the country and covered over 130. An important turning point in the history of State Bank of India is the launch of the first Five Year Plan of independent India. confined their services to the urban sector. As a result. the former state-owned or state-associate banks. sub offices and three Local Head Offices. the commercial banks of the country. Therefore. because as much as a quarter of the resources of the Indian banking system were controlled directly by the State. to drive home the message of Change and inclusiveness. the State Bank of India (SBI) was established on 1 July 1955. the State Bank of India catered to the needs of the customers. Subsequently. and integrating with it. an Act was passed in the Parliament of India in May 1955. This resulted in making the State Bank of India more powerful.

The eight banking subsidiaries are: • • • State Bank of Bikaner and Jaipur (SBBJ) State Bank of Hyderabad (SBH) State Bank of India (SBI) . there are several other establishments in and outside Mumbai. State Bank of Indore. The Bank also facilitates the free transaction of money at the ATMs of State Bank Group.Branches The corporate center of SBI is located in Mumbai. ATM Services SBI provides easy access to money to its customers through more than 8500 ATMs in India. located at major cities throughout India.52 - . fund management. State Bank of Hyderabad. The bank boasts of having as many as 14 local head offices and 57 Zonal Offices. In order to cater to different functions. You may also transact money through SBI Commercial and International Bank Ltd by using the State Bank ATM-cum-Debit (Cash Plus) card. It is recorded that SBI has about 10000 branches. Through the establishments. apart from the corporate center. credit cards and insurance. etc. factoring services.Well networked to cater to its customers throughout India. Subsidiaries The State Bank Group includes a network of eight banking subsidiaries and several non-banking subsidiaries. it offers various services including merchant banking services. primary dealership in government securities. which includes the ATMs of State Bank of India as well as the Associate Banks – State Bank of Bikaner & Jaipur.

where it has 84 offices serving the international needs of the bank's foreign customers. and in some cases conducts retail operations. The focus of these offices is India-related business. Foreign Branches: SBI has branches in these countries:            Australia Bahrain Bangladesh Belgium Canada Dubai France Germany Hong Kong Israel Japan .• • • • • State Bank of Indore (SBIR) State Bank of Mysore (SBM) State Bank of Patiala (SBP) State Bank of Saurashtra (SBS) State Bank of Travancore (SBT) Foreign Offices: State Bank of India is present in 32 countries.53 - .

most notably during Chandra Shekhar's tenure as Prime Minister of India.         • People's Republic of China Republic of Maldives Singapore South Africa Sri Lanka Sultanate of Oman The Bahamas U.K.A Subsidiaries and Joint Ventures: In addition to the foreign branches above. U. urban and semi-urban branches under its Core Banking System (CBS). SBI has these wholly owned subsidiaries and joint ventures:      • Nepal State Bank Limited SBI Mauritius Indian Ocean International Bank (Mauritius) SBI Canada SBI California Growth: State Bank of India has often acted as guarantor to the Indian Government. Following its arch-rival ICICI Bank. State Bank of India has electronically networked most of its metropolitan. The bank . with over 4500 branches being incorporated so far.S. With more than 9400 branches and a further 4000+ associate bank branches. the SBI has extensive coverage.54 - .

55 - . It is the only Indian bank to feature in the top 100 world banks in the Fortune Global 500 rating and various other rankings. The State Bank of India has had steady growth over its history.2 Group companies:         SBI Capital Markets Ltd SBI Mutual Fund (A Trust) SBI Factors and Commercial Services Ltd SBI DFHI Ltd SBI Cards and Payment Services Pvt Ltd SBI Life Insurance Co. Stockholders' Equity 9.407. the bank has sought to expand its overseas operations by buying foreign banks.Banc assurance (Life Insurance) SBI Funds Management Pvt Ltd SBI Canada IT Initiatives: . Profits 1.1. In recent years. In 2007 it moved up to 495. According to the Forbes 2000 listing it tops all Indian companies. Revenues 15. As per fortune 500-2007 following are the data for SBI in $ million.4. Fortune Global 500 Ranking – 2007: SBI debuted in the Fortune Global 500[2] at 498 in 2006. though the Harshad Mehta scam in 1992 marred its image. Ltd .3.has the largest ATM network in the country having more than 5600 ATMs [1].786.547.119. Assets 187.

20. State Bank of India launched a project in 2002 to network more than 14. Corporate Details: State Bank of India is actively involved since 1973 in non-profit activity called Community Services Banking. No. The new infrastructure serves as the bank's backbone.000 branches have been covered. 12). State Bank of India is India's largest bank amongst all public and private sector banks operating in India. State Bank of India owns and operates the following subsidiaries and Joint Ventures –  State Bank Of India Credit Card  State Bank Of India Online  State Bank Of India USA  State Bank Of India Services  State Bank Of India Mutual Funds  State Bank Of India Branch  State Bank Of India NRI Account Foreign Subsidiaries:  State bank of India International (Mauritius) Ltd. The new infrastructure has enabled the bank to further grow its ATM network with plans to add another 3.600. over 10.000 domestic and 70 foreign offices and branches. carrying all applications.000 by the end of 2007 raising the total number to 8. 2007 SBI has 7236 ATMs.According to PM Network (December 2006. . As of December 2006.56 - . As of September 20. ATM network. such as the IP telephone network. Vol. Internet banking and internal e-mail. The first and the second phases of the project have already been completed and the third phase is still in progress.

banking Subsidiaries      SBI Capital Markets Ltd (SBICAP) SBI Funds Management Pvt Ltd (SBI FUNDS) SBI DFHI Ltd (SBI DFHI) SBI Factors and Commercial Services Pvt Ltd (SBI FACTORS) SBI Cards & Payments Services Pvt. (SBICPSL) Joint ventures:  SBI Life Insurance Company Ltd (SBI LIFE). State Bank of India (Canada). Non. Lagos. Ltd. The State Bank of India 14 Local Head Offices and 57 Zonal Offices are located at important cities spread throughout the country. The Corporate Accounts Group is a Strategic Business Unit of the Bank set up exclusively to fulfill the specialized banking needs of top corporate in the country.   State Bank of India (California). INMB Bank Ltd. State Bank of India has 52 foreign offices in 34 countries across the globe.57 - . The main activities of are into - . Activities: State Bank of India administrative structure is well equipped to oversee the large network of branches in India and abroad.

E-Rail. RBIEFT. Performance: . SBI Vishwa Yatra Foreign Travel Card.58 - . Moreover. MICR Codes. Foreign Inward Remittances. NRI Services. Domestic Treasury. Corporate. State Bank of India has Colleges/Institutes/Training Centers that are the seats of learning and research and development. Internet Banking. SME. Broking Services Revised Service Charge. State Bank of India offers the following services to its customers              Domestic Treasury. International. It caters not only to the employees of State Bank of India but also other banks/establishments in India and abroad. Safe Deposit Lockers. E-Pay. Agriculture. Gift Cheques.       Personal Banking. ATM Services.

83 crore for the financial year 2006 -07.59 - . State Bank of India has posted Net Income to the tune of Rs 6364.SBI Bank India had Total Income of Rs 68376.38 crore or the financial year 2006 -07. Products And Services Personal Banking • • • • • SBI Term Deposits SBI Loan For Pensioners SBI Recurring Deposits Loan Against Mortgage Of Property SBI Housing Loan Loan Against Shares & Debentures SBI Car Loan Rent Plus Scheme SBI Educational Loan Medi-Plus Scheme Other Services • • • • • • • • • • • • • • • Agriculture/Rural Banking NRI Services ATM Services Demat Services Corporate Banking Internet Banking Mobile Banking International Banking Safe Deposit Locker RBIEFT E-Pay E-Rail SBI Vishwa Yatra Foreign Travel Card Broking Services Gift Cheques .

the State Bank of India is undertaking. patronised by over 80% of the top corporate houses of the country. SBI Mutual Fund is a joint venture between the State Bank of India and Société Générale Asset Management. August 26.India’s largest banking enterprise. to its Chairman. The fund traces its lineage to SBI . and has awarded the prestigious Indian of the Year – Business.The CNN IBN. O. Bhatt in January 2008 INVESTMENT MUTUAL FUND EQUITY SCHEMES DABT SCHEMES BALANCED SCHEMES LIFE INSURENCE EXCHANGE TREADED SCHEMES Unit Linked Products: Pension Products:Pure Protection Products:Protection cum Savings Products:Money Back Scheme Products:SBI Life . 2008 – SBI Life Insurance has achieved a unique distinction of ranking third globally in terms of number of Million Dollar Round Table (MDRT) .SARAL ULIP Protection Plans: Specialized Term Insurance:Retirement Solutions: SBI Life . Network 18 recognized this momentous transformation journey. Mr. P.Grameen EQUITY Shakti. Mumbai. The institution has grown immensely since its inception and today it is India's largest bank.60 - .Swadhan (Group): SBI Life Dhanaraksha Plus: SBI Life . one of the world’s leading fund management companies that manages over US$ 500 Billion worldwide. Health Products: ALL TYPES SBI Mutual Fund is India’s largest bank sponsored mutual fund and has an enviable track record in judicious investments and consistent wealth creation.

reviewing and approving the annual budgets and borrowing limits and fixing exposure limits. P.486 2. .000 SBI Life Insurance Advisors.167 1. Bhatt is the Chairman of the bank. Among these.61 - . Of the 40. The board in addition to monitoring corporate performance also carries out functions such as approving the business plan. 124 qualified for Court of Table (COTs) and 20 for Top of Table (TOTs). 2008 RANK COMPANY NAME COUNTRY 1 2 3 Samsung Life Ins New York Life Korea USA MEMBERS 2. Mr. O.159 595 536 343 125 124 HDFC Standard Life India Max New York Life India ICICI Pru Birla Sunlife India India Management The bank has 14 directors on the Board and is responsible for the management of the Bank’s business. 1.662 SBI Life Insurance India Northwestern 4 5 11 14 22 68 69 Mutual AIA-Hong Kong LIC of India USA Hong Kong India 1.662 have qualified for the prestigious MDRT membership.members.411 1.

Mr. Micro Finance . Bhatt will expire in March 2011.62 - . . and new heads for rural banking and for corporate development and new business banking have been appointed.The five-year term of Mr. Micro Credit / Micro Finance : State Bank of India SHG Movement .A noble mission to reach those families who were hitherto having no access to the credit by any formal financial institution and. The positions of CFO and the head of treasury have been segregated. Recently. the senior management of the bank has been broadened considerably. Bhatt has more than 30 years of experience in the Indian banking industry and is seen as futuristic leader in his approach towards technology and customer service. Mr. Mr.Deep Roots in SBI: Micro finance is not new to State Bank of India. Bhatt has had the best of foreign exposure in SBI. We believe that the appointment of Mr. Mr. The management’s thrust on growth of the bank in terms of network and size would also ensure encouraging prospects in time to come.Bank's association with non-government organizations (NGOs) or voluntary agencies in extending financial help can be traced as far back as 1976 well before NABARD introduced SHG-Bank Credit Linkage Programme as a pilot project in 1992.A Mission: SBI has taken up SHG movement as a mission. T S Bhattacharya is the Managing Director of the bank and known for his vast experience in the banking industry. Bhatt would be a key to SBI’s future growth momentum. Prior to this appointment. were depending on informal sources and moneylenders. Bhatt was Managing Director at State Bank of Travancore. therefore.

752 48.84 cr.68.674 75.553 1.067 SBI . 434.07.Leader in SHG . 269.Since then the Bank has made a steady progress in financing SHGs. March .466 3.89 cr.41 lac SHGs have been provided with credit facilities thus benefiting more than 75 lac poor people.Steady Growth in SHG .43.) 348.To list a few examples: .As on March 2006.87 cr.82 cr. The yearwise cumulative position of SHGs-Bank Linkage programme for the last 4 years is as under: Year SHGs linked (financed) No.666 3.31 cr.06 1.74.77 cr.07 cr. 1459. of SHGs maintaining Savings a/c in the Bank Amount in Savings a/c 261.08.33.Majority of these SHGs are women SHGs.36 cr.36.As at the end of March 2006.95 cr.067 Savings Bank account of SHGs out of which more than 5.30. 614. 872. 2.40.Bank Credit Linkage SBI is maintaining its position as a leader among Commercial Banks in credit linking of SHGs and is a prime driver for the movement. 1311.568 5. of beneficiaries Amount disbursed Amount outstanding No. SBI's branches spread throughout the length and breadth of the country have opened 6.Bank Credit Linkage Programme: SBI has actively participated in SHG-Bank Credit Linkage programme since its inception in 1992 as a pilot project of NABARD.660 21. 462.50. Innovations & Initiatives Bank has successfully initiated various measures toward widening its SHG network.45 cr.481 12. 411. in Rs.79.11.69.04 March .43 cr. (Amt.396 6. 2262.03 March .842 324.63 - .691 5.05 March .08 cr. SBI with a share of approximately 47% of total SHGs financed by Commercial Banks is far ahead of others.

Shakti: SBI Life. i. (v) Lending to NGOs / Federations of SHGs: Lending to credible NGOs / Federations of SHGs on selective basis for on lending to SHGs is being encouraged.Special feature of the scheme is that entire premium amount paid by the member is refunded after maturity. (iii) Close liaison with NGOs Operating functionaries at branch level and region level are in close contact with NGOs in their area to take the movement ahead. (vii) SBI Life . (vi) Sahayog Niwas: SBI has launched its Housing Loan product ‘SAHAYOG NIWAS meant for SHG members.e. Hyderabad. (iv) SHG cells: Special SHG cells have been opened at major branches. especially designed for SHG members. 10 years. to impart training in self employment to youth free of cost.64 - .Under the scheme formulated keeping the socio economic conditions of villages insight. (ii) Special training programmes in SHGs are being conducted at 54 training centres of the Bank in the country apart from State Bank Institute of Rural Development. two RUDSETI type training institutes have been established at Gulbarga and Gadag in Karnataka State.For the purpose. regular meetings are arranged with the NGOs and their support is solicited.Response to this product is very encouraging. our insurance subsidiary. is the first to introduce a life insurance scheme..(i) Sensitisation of staff Bank's aim is to sensitise the entire staff from Manager to Messenger working in rural and semi-urban branches towards the programme. (viii) Rural training institutes: To help the rural youth to stand on their feet. housing loans are given to the SHG members without any mortgage of house / land. .

(ix) SBI staff as SHPI: The main role of formation and nurturing of SHGs have been played by NGOs who, apart from their fundamental role of social service, also aim to make the poor economically self sufficient.But in SBI, our committed work force is not lagging behind and a number of committed staff members have worked hard to form and nurture SHGs on their own. (x) Appreciation by Government: A number of our branches / Circles have also received commendation and appreciation from various State Governments for doing excellent job in SHG-Bank Credit Linkage programme. NABARD felicitated 15 SHGs at a function organized in New Delhi on 13th September 2005.The function was presided over by the Hon’ble Union Finance Minister.Out of total 15 SHGs felicitated, 4 were financed by our branches, one each from Orissa, Jharkhand, Madhya Pradesh and Uttaranchal. (xi) Samanwita: Bank has sponsored and financially supported NGO SAMANWITA in collaboration with Government of Orissa for supplementing the process of socio economic upliftment of the tribals and the downtrodden in the poorest and most backward Kandhamal district of Orissa State where 52% of the population is that of tribals.Core activities performed by Samanwita is empowerment of people through promotion of SHGs, especially women SHGs and development of human resources. (xii) SHPI status: State Bank of India is the first Commercial Bank to which NABARD has recently given SHPI status. Future Plans SBI has set for itself an ambitious target of credit linking 1 million SHGs up to March 2008.The Bank has started to leverage our vast SHG network for various services beyond credit delivery.

INTRODUCTION OF ICICI BANK

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ICICI Group offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialised group companies, subsidiaries and affiliates in the areas of personal banking, investment banking, life and general insurance, venture capital and asset management. With a strong customer focus, the ICICI Group Companies have maintained and enhanced their leadership position in their respective sectors. ICICI Bank is India's second-largest bank with total assets of Rs. 3,793.01 billion (US$ 75 billion) at March 31, 2009 and profit after tax Rs. 37.58 billion for the year ended March 31, 2009. The Bank has a network of 1,451 branches and about 4,721 ATMs in India and presence in 18 countries.

HITORY
1955: The Industrial Credit and Investment Corporation of India Limited (ICICI) incorporated at the initiative of the World Bank, the Government of India and representatives of Indian industry, with the objective of creating a development financial institution for providing medium-term and long-term project financing to Indian businesses. Mr.A.Ramaswami Mudaliar elected as the first Chairman of ICICI Limited. ICICI emerges as the major source of foreign currency loans to Indian industry. Besides funding from the World Bank and other multi-lateral agencies, ICICI was also among the first Indian companies to raise funds from international markets. 1956: ICICI declared its first dividend of 3.5%

1961:

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The first West German loan of DM 5 million from Kredianstalt obtained 1967: ICICI made its first debenture issue for Rs.6 crore, which was oversubscribed 1972: The second entity in India to set up merchant banking services 1977: ICICI sponsored the formation of Housing Development Finance Corporation. Managed its first equity public issue. 1986: ICICI became the first Indian institution to receive ADB Loans. ICICI, along with UTI, set up Credit Rating Information Services of India Limited, India's first professional credit rating agency. ICICI promotes Shipping Credit and Investment Company of India Limited 1993: Promoted TDICI - India's first venture capital company

1994:

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ICICI assigned higher than sovereign rating by Moody's. ICICI becomes the first Indian Company to list on the NYSE through an issue of American Depositary Shares 2001: ICICI Bank became the first commercial bank from India to list its stock on NYSE.ICICI Securities and Finance Company Limited in joint venture with J. ICICI Bank set up. ICICI Bank announces merger with Bank of Madura.68 - .car loans. : ICICI Bank launched India's first CDO (Collateralised Debt Obligation) Fund named Indian Corporate Collateralised Debt Obligation Fund (ICCDO Fund). 2002: ICICI Ltd merged with ICICI Bank Ltd to create India's second largest bank in terms of assets. The Boards of ICICI Ltd and ICICI Bank approved the merger of ICICI with ICICI Bank. Morgan set up 1996: ICICI Asset Management Company set up. ICICI Ltd became the first company in the Indian financial sector to raise GDR 2000: ICICI launched retail finance . house loans and loans for consumer durables. . P.

Representative office set up in China. a self-service banking centre inaugurated in Pune. India's first ever "Visa Mini Credit Card". India's first mobile ATM. launched in Mumbai. 1100-seat Call Centre set up in Hyderabad ICICI Bank Home Shoppe. The first offshore banking unit (OBU) at Seepz Special Economic Zone. ICICI Bank launched Private Banking."E Lobby". ICICI Bank's UK subsidiary launched. ICICI Bank announced the setting up of its first ever offshore branch in Singapore. Mumbai.69 - . It was the first of its kind in India. the first-ever permanent aggregation and display of housing projects in the county. a 43% smaller credit card in dimensions launched. launched in Pune. ATM-on-Wheels. . 2003: The first Integrated Currency Management Centre launched in Pune. ICICI Bank's representative office inaugurated in Dubai. launched.

ICICI Bank introduced partnership model wherein ICICI Bank would forge an alliance with existing micro finance institutions (MFIs). . to 8 p.ICICI Bank subsidiary set up in Canada. ICICI Bank became the market leader in retail credit in India. from Monday to Saturday. ICICI Bank opened its 500th branch in India. training and promoting the micro-finance clients and ICICI Bank would finance the clients directly on the recommendation of the MFI. a pioneering initiative to encourage the contribution of Small and Medium Enterprises to the growth of Indian economy. "Free for Life" credit cards launched wherein annual fees of all ICICI Bank Credit Cards were waived off. Hardoi. 2005: ICICI Bank and CNBC TV 18 announced India's first ever awards recognising the achievements of SMEs. Temasek Holdings acquired 5.m. ICICI Bank introduced 8-8 Banking wherein all the branches of the Bank would remain open from 8a. The MFI would undertake the promotional role of identifying. First rural branch and ATM launched in Uttar Pradesh at Delpandarwa.70 - . ICICI Bank introduced the concept of floating rate for home loans in India. ICICI Bank and Visa jointly launched mChq – a revolutionary credit card on the mobile phone.2% stake in ICICI Bank.m.

Representative offices opened in Thailand.8 billion in India. A lowcost solution. financial planning and debt management services. Financial counseling centre Disha launched. Indonesia and Malaysia. a nationwide Golf tournament for high networth clients of the private banking division launched. ICICI Bank became the largest bank in India in terms of its market capitalisation 2007: Introduced a new product . This event is the largest domestic invitation amateur golf event conducted in India.Private Banking Masters 2005. ICICI Bank became the largest retail player in the market to introduce a biometric enabled smart card that allow banking transactions to be conducted on the field. Acquired Ivestitsionno Kreditny Bank of Russia. Andhra Pradesh. this became an effective delivery option for ICICI Bank's micro finance institution partners. First Indian company to make a simultaneous equity offering of $1. Bhoomi puja conducted for a regional hub in Hyderabad. the United States and Japan. .71 - . ICICI Bank's USD 2 billion 3-tranche international bond offering was the largest bond offering by an Indian bank.'NRI smart save Deposits' – a unique fixed deposit scheme for nonresident Indians. Disha provides free credit counseling.

to help small and medium enterprises start. ICICI Bank became the first private bank in India to offer both floating and fixed rate on car loans.5 billion syndication loan agreement in Singapore. ICICI Bank's GBP 350 million international bond offering marked the inaugural deal in the sterling market from an Indian issuer and also the largest deal in the sterling market from Asia. finance and grow their business. ICICI Bank launched the "Probationary Officer Programme". ICICI Bank signed a multi-tranche dual currency US$ 1. ICICI Bank raised Rs 20. an online resource centre.72 - . construction equipment loans and professional equipment loans.000 crore (approx $5 billion) from both domestic and international markets through a follow-on public offer. Gujarat. Introduced SME Toolkit. Launched India's first ever jewellery card in association with jewelry major Gitanjali Group. nation wide initiative to attract bright graduate students to pursue a career in banking. .The Visa Signature Credit Card. In a first of its kind. commercial vehicles loans.Sangli Bank amalgamated with ICICI Bank. Foundation stone laid for a regional hub in Gandhinagar. ICICI Bank became the first bank in India to launch a premium credit card -.

2008: ICICI Bank enters US. opens its first branch in Frankfurt.96 billion (equivalent of USD 1. 48. ICICI Bank enters Germany. BANK SEVIES . It is also the largest deal in Asia (ex-Japan) in 2008 till date and the second largest deal in Asia (ex-Japan & Australia) since the beginning of 2007. launches its first branch in New York.Launched Bank@home services for all savings and current a/c customers residing in India ICICI Bank Eurasia LLC inaugurated its first branch at St Petersburg. ICICI Bank launched iMobile.73 - . Russia. a breakthrough innovation in banking where practically all internet banking transactions can now be simply done on mobile phones. ICICI Bank concluded India's largest ever securitisation transaction of a pool of retail loan assets aggregating to Rs.21 billion) in a multitranche issue backed by four different asset categories.

74 - .• Personal Banking o o o o Savings & Deposits Loans Cards Wealth management • • Global Private Clients Corporate Banking o o o o o o o o Transaction Banking Treasury Banking Investment Banking Capital Markets Custodial Services Rural & Agri Banking Structured Finance • Business Banking Technology Finance o Current Account o Business o Forex o Trade o Cash Loans Management • NRI Banking o o o o o o Services Money Transfer Bank Accounts Investment Property Solutions Insurance Loans INSURENCE & INVESTMENT • Life Insurance o o Life Insurance Retirement Solutions .

o o Health Solutions o o General Insurance Education Solutions Health Insurance Overseas Travel Student Medical Motor Insurance Insurance o Insurance o o • Securities o o o o Home Insurance Corporate Finance Primary Dealership Institutional Equities Retail Equities Our Funds Performance Analyser Systematic Investing Compare Schemes • Mutual Fund o o o o • Private Equity Practice INVESTOR RELATIONS .75 - .

It is ICICI Group's belief that all stakeholders should have access to complete information regarding its position to enable them to accurately assess its future potential. It collects funds from surplus units and lends the same to those units whose income exceeds its expenditure. such as insurance and asset management. Its commercial banking operations for retail customers consist of retail lending and deposits. deposits and . fee and commission-based products and services. as well as issuance of unsecured redeemable bonds.76 - . including loan products. treasury and investment banking and other products. ICICI Bank provides a range of commercial banking and project finance products and services. In the pursuit of these objectives the ICICI Bank Limited (ICICI Bank) offers products and services in the areas of commercial banking to retail and corporate customers (both domestic and international). distribution of third-party investment products and other fee-based products and services. ICICI Group regularly publishes information on its operations and various initiatives for its investors.        Annual Reports Investor Presentations Quarterly Financial Results Share price and ownership SEC Filings Credit Ratings Investor FAQs NATURE OF BUSINESS: ICICI is a financial intermediary which brings together the savers and borrowers in the economic system.

1956 and licensed as a bank under the Banking Regulation Act. efficiently and conveniently  . This we hope to achieve by:  Understanding the needs of customers and offering them superior products and service Leveraging technology to service customers quickly. growth-oriented middle market companies and small and medium enterprises. Health and Pensions player built on trust by world-class people and service.foreign exchange and derivatives products to corporations. 1949 ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and the National Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE).77 - . VISION To be the leading provider of financial services in India and a major global bank. is the joint stock company which is incorporated under the Companies Act. ONWNERSHIP TYPE JOINT STOCK COMPANY: ICICI BANK LIMITED. To be the preferred brand for total financial and banking solutions for both corporates and individuals To be the dominant Life.

play a proactive role in the full realisation of India’s potential. Each of the values describe what the company stands for. create value for our stakeholders Provide the social facilities to the society        . Developing and implementing superior risk management and investment strategies to offer sustainable and stable returns to our policyholders Providing an enabling environment to foster growth and learning for our employees And above all. there are no limits to our growth. contribute positively to the various countries and markets in which we operate. technology. the qualities of our people and the way we work. speed and financial capital to:  Be the banker of first choice for our customers by delivering high quality. MISSION We will leverage our people. We do believe that we are on the threshold of an exciting new opportunity. worldclass products and services. building transparency in all our dealings   The success of the company will be founded in its unflinching commitment to 5 core values -. maintain a healthy financial profile and diversify our earnings across businesses and geographies.Integrity. Boundaryless. Given the quality of our parentage and the commitment of our team. Ownership and Passion. maintain high standards of governance and ethics. where we can play a significant role in redefining and reshaping the sector. Customer First.78 - . expand the frontiers of our business globally.

IN order to build some brand equity by doing social service, ICICI Bank has decided to undertake a MISSION for reducing low birth weight incidence at the village level. Undertaken by ICICI Bank's Social Initiatives Group, the bank has decided to identify effective and scalable strategies for delivering the services required to impact female nutritional status to tackle the incidence of low birth babies. Appointing several partners to work on this project an ICICI Bank official says, ``This is going to be a significant MISSION supported by the bank and the aim to understand whether a suitably trained health worker working with the public health system and the integrated child development scheme can provide quality services to impact low birth incidence at the village level.'' The MISSION is based in Ranchi district in Jharkhand and is being implemented through a partnership between the Department of Health, Government of Jharkhand, Krishi Gram Vokas Kendra(KGVK) and Care, both of whom are NGOs based in Jharkhand and the Child in Need Institute (CINI), an NGO based in West Bengal. Adds the ICICI Bank official, ``ICICI Bank needs to participate in the all round development of the country by focusing on some of its fundamental problems. It seeks to perform this role primarily as a funding agency, through its Social Initiatives Group.'' ICICI Bank's Social Initiative Group's (SIG) mission is ``to identify and support initiatives designed to improve the capacities of the poorest of the poor to participate in the larger economy.'' The group seeks to achieve its mission by supporting initiatives that are costeffective, capable of large-scale replication and have the potential for near and longterm impact. ``ICICI Bank believes in strengthening or supplementing existing systems rather than investing in parallel structures.
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The purpose is also to build long-term relationships with sustainable partners,'', adds the bank official. In the past, ICICI Bank has undertaken projects in the area of elementary education and micro financial services.

REGISTERED OFFICE
ICICI Bank Limited Registered Office: Landmark, Race Course Circle, Vadodara 390 007. Corporate Office: ICICI Bank Towers, Bandra Kurla Complex, Mumbai 400 051.

SUBSIDIARIES

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ORGANITION STRUCTURE
An organization structure as an integral part of a system or a group. It has to accept the discipline and regulatory ethics of the system/group. It has also to compete within the group and strive to excel in its performance. An organization structure also operates with in a social, economic and political environment We believe that the structure of an organization needs to be dynamic, constantly evolving and responsive to changes both in the external and internal environments. Our organizational structure is designed to support our business goals, and is flexible while at the same time ensuring effective control and supervision and consistency in standards across business groups.

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.82 - .

.83 - .

"We need to stop sending government and funding agencies the signal that microfinance is not a commercially viable system". interest rates have also dropped. "Interest rates have come down from 14% to 10%". says Reddy. unlike a few years ago". as banks are looking into MFIs favorably. the sector has changed rapidly.98 billion (US$227 million). says Padmaja Reddy. Spandana. Executive Director of ICICI Bank. while improving the lives of poor people. From 10.20 billion (US$4. "There is no dearth of funds today. and its outstanding portfolio has increased from Rs. As a result of banks entering the game. 0. the largest private bank in India. ICICI Bank is now lending to 1. Who would not appreciate the winwin of this situation? Rapid Growth ICICI's microfinance portfolio has been increasing at an impressive speed.2 million clients through its partner microfinance institutions. and ICICI believes grant money should be limited to the creation of facilitative infrastructure. A few years ago. the CEO of one of ICICI Bank's major MFI partners.5 million) to Rs. be interested in serving low-income segments? Simply because it recognizes that poor people are bankable. There is an increasing shift in the microfinance sector from grant-giving to investment in the form of debt or equity. this image has been changing in India in the last few years as commercial banks have been widely entering the sector. these clients had never been served by a formal lending institution. profitable opportunity.ICICI Banks the Poor in India: Demonstrates That Serving Low-Income Segments Is Profitable The traditional image of microfinance is one of a charitable activity conducted mostly by non-profit organizations and separate from the mainstream financial system.000 microfinance clients in 2001. But why would ICICI. 9. says Nachiket Mor. and that microfinance provides a new. ICICI Bank sees an opportunity to make profits in untouched markets. led by ICICI Bank. And with banks entering the sector. . However.84 - .

Partnership Models
But how has ICICI Bank been able to achieve such rapid growth in such a short time? This success is due to a series of innovative models and initiatives. While a model of microfinance has emerged in recent years in which a microfinance institution (MFI) borrows from banks and on-lends to clients, few MFIs have been able to grow beyond a certain point. Under this model, MFIs are unable to provide risk capital in large quantities, which limits the advances from banks. In addition, the risk is being entirely borne by the MFI, which limits its risk-taking.

The MFI as Collection Agent
To address these constraints, ICICI Bank initiated a partnership model in 2002 in which the MFI acts as a collection agent instead of a financial intermediary. This model is unique in that it combines debt as mezzanine finance to the MFI.[1] The loans are contracted directly between the bank and the borrower, so that the risk for the MFI is separated from the risk inherent in the portfolio. This model is therefore likely to have very high leveraging capacity, as the MFI has an assured source of funds for expanding and deepening credit. ICICI chose this model because it expands the retail operations of the bank by leveraging comparative advantages of MFIs, while avoiding costs associated with entering the market directly.

Securitisation
Another way to enter into partnership with MFIs is to securitize microfinance portfolios. In 2004, the largest ever securitisation deal in microfinance was signed between ICICI Bank and SHARE Microfin Ltd, a large MFI operating in rural areas of the state of Andra Pradesh. Technical assistance and the collateral deposit of US$325,000 (93% of the guarantee required by ICICI) were supplied by Grameen Foundation USA. Under this agreement, ICICI purchased a part of SHARE's microfinance portfolio against a consideration calculated by computing the Net Present Value of receivables amounting to Rs. 215 million (US$4.9 million) at an agreed discount rate. The interest paid by SHARE is almost 4% less than the rate paid in commercial loans. Partial credit provision was provided by SHARE in the form of a guarantee amounting to 8% of the
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receivables under the portfolio, by way of a lien on fixed deposit. This deal frees up equity capital, allowing SHARE to scale up its lending. On the other hand, it allows ICICI Bank to reach new markets. And by trading this high quality asset in capital markets, the bank can hedge its own risks. Janet MacKinley, chairman of the Income Fund of America and Vice Chair of Grameen Foundation USA's Program Committee welcomes this deal; she says: "I believe it will encourage more of these types of transactions that can play a strategic role in making microfinance more widely available to the world's poorest communities". Another securitisation deal was also signed with Bhartya Samruddhi Finance Limited (BSFL), in which ICICI Bank securitised the receivables of a selected portfolio of microfinance loans by BSFL amounting to Rs 42.1 million (US$ 957,000). Both under the partnership model and under the securitisation deal, the bank provides organizations with financial support at a mezzanine level which enables them to offer credit protection in the microfinance portfolios to a reasonable extent.

Training New Partners
Despite rapid growth, the lack of NGOs and MFIs operating in India remains a constraint. According to ICICI Bank, there is a need for approximately 200 MFIs to cover the country, however there are only 15 large players capable of scale. New players are therefore needed: ICICI believes that new NGOs, entrepreneurs, and corporations who conduct development activities in rural areas can and should become MFIs. ICICI Bank has put in place its Micro Finance Development Team with the objective of identifying and training new partners. The Social Initiative Group of ICICI Bank (SIG) aims to partner with organizations to identify and support entrepreneurs in microfinance.

Working with Venture Capitalists

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Another challenge in scaling-up the microfinance sector is the lack of equity capital. In order to solve this shortage, ICICI Bank is encouraging venture capitalists to start entering the sector. Several venture capital funds in the country have the capability of identifying and mentoring entrepreneurs, including Lok Capital, Aavishkar and Bell Weather. Bell Weather has made three equity commitments for start up, and its committee has decided to increase the size of the fund from US$10 million, to US$25 million. Lok capital mobilizes and directs private capital to fund microfinance activities and to fund long term management and technical support for development of commercially sustainable MFIs. Aavishkar provides micro-equity funding (Rs. 10 lacs to Rs. 50 lacs, approximately US$20,000 to US$100,000) and operational and strategic support to commercially viable companies increasing income in or providing goods and services to rural or semi-urban India. ICICI Bank has come to an agreement with these three venture capitalists under which it will provide take-out financing to the MFI to buy out the venture after a period of three to five years, provided the MFI attains an operational sustainability rating from Micro-Credit Ratings International Ltd (M-CRIL) and Credit Rating Information Services of India Limited (CRISIL).

Beyond Microcredit
Microfinance does not only mean microcredit, and ICICI does not limit itself to lending. ICICI's Social Initiative Group, along with the World Bank and ICICI Lombard, the insurance company set up by ICICI and Canada Lombard, have developed India's first index-based insurance product. This insurance policy compensates the insured against the likelihood of diminished agricultural output/yield resulting from a shortfall in the anticipated normal rainfall within the district, subject to a maximum of the sum insured. The insurance policy is linked to a rainfall index.

Technology

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One of the main challenges to the growth of the microfinance sector is accessibility. The Indian context, in which 70% of the population lives in rural areas, requires new, inventive channels of delivery. The use of technologies such as kiosks and smart cards will considerably reduce transaction costs while improving access. The ICICI Bank technology team is developing a series of innovative products that can help reduce transaction costs considerably. For example, it is piloting the usage of smart cards with Sewa Bank in Ahmedabad. To maximize the benefits of these innovations, the development of a high quality shared banking technology platform which can be used by MFIs as well as by cooperatives banks and regional rural banks is needed. ICICI is strongly encouraging such an effort to take place. Wipro and Infosys, I-Flex, 3iInfotech, some of the best Indian information technology companies specialized in financial services, and others, are in the process of developing exactly such a platform. At a recent technology workshop at the Institute for Financial Management Research in Chennai, the ICICI Bank Alternate Channels Team presented the benefits of investing in a common technology platform similar to those used in mainstream banking to some of the most promising MFIs. It is hoped that this workshop will unite five to ten MFIs in creating an independent association that will lead these efforts.

The Centre for Microfinance Research
While the sector has been growing rapidly, and while the focus has been largely on growing outreach, there is an urgent need to fill gaps both in practice and understanding in order to maximize the impact of this growth. To fill these gaps, ICICI bank has created the Centre for Microfinance Research (CMFR) at the Institute for Financial Management Research (IFMR) in Chennai. Through research, research-based advocacy, high level training and strategy building, it aims to systematically establish the links between increased access to financial services and the participation of poor people in the larger economy. The CMFR Research Unit supports initiatives aimed at understanding and analyzing the following issues: impact of access to financial services; contract and product designs; constraints to household productivity; combination of microfinance and other

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water. the CMFR directly helps MFIs in terms of strategy building. the CMFR also organizes regular seminars and conducts courses for managers and researchers from NGOs. costs and profitability of microfinance organizations. government. which in turn impacts household well-being. international organizations. economics of micro-enterprises. Finally. a study on the break-up of transaction costs of MFIs and SHGs. and academics. etc). health. The CMFR Microfinance Strategy Unit will address these issues through a series of workshops which will bring together MFI practitioners and sectoral experts (in energy. aimed at financial institutions both large and small that wish to acquire a comprehensive and detailed set of skills to effect their transformation. A training series on Building Blocks of Banking and Finance will also be conducted. such as healthcare. including MIT. and gaps in knowledge.89 - . For example. it is implementing an impact evaluation of Spandana's microcredit programme in Hyderabad. The CMFR is involved in several studies with researchers from leading universities. . the CMFR recognizes that while MFIs aim to meet the credit needs of poor households. people's behavior and psychology with respect to financial services. In order to bring together academics and practitioners. Harvard. the CMFR Microfinance Strategy Unit will offer advanced financial management training for microfinance practitioners. as the first randomized evaluation of microcredit. In partnership with MicroSave. In addition to undertaking research. Other on-going projects include the impact evaluation of smokeless chulhas on health and productivity in Orissa. impact of MFI policies and strategies. evidence of credit constraints. and an analysis of Sewa Bank's loans and accounts panel data base in Ahmedabad. and Yale. infrastructure. and the effect of regulations. roads. there are other missing markets and constraints facing households.development interventions. it will allow estimating the effects of the MFI's programme in an unbiased manner. These have implications in terms of the scale and profitability of client enterprises and efficiency of household budget allocation.

742 crore for the fourth quarter ended March 31. State Bank of India posted a 46 per cent rise in net profit at Rs 2. challenges must be addressed in order to make this growth both effective and sustainable. if growth is properly managed and questions are correctly answered. Microfinance needs to become more accessible.The latter will bring to the table knowledge of best practices in their specific areas. Is microfinance the solution? ICICI Bank believes it is.718 crore (Rs 2. CURRENT SCENARIO SBI profit rises 46% in Q4 on higher other income Kolkata. more customized and more comprehensive. The bank made a profit of Rs 1. Mr O. according to its Chairman. 2009.90 - . up from Rs 1. While the microfinance sector is growing fast in India.508 crore on account of sale of investments in the quarter ended March 31. May 9 Riding on higher other income including profits from treasury operations. .883 crore during the corresponding quarter of last year.P. and each consultation workshop will result in long-term collaboration between with MFIs for implementing specific pilots. 2009. several questions need to be answered. Other income for the quarter under consideration grew by 67 per cent at Rs 4. Bhatt. In order for microfinance to be a useful mechanism for poverty alleviation.817 crore).

2009 increased by 35.91 - .5 per cent at Rs 9. The bank’s treasury income in 2008-09 increased by 171 per cent to Rs 2.566 crore on account of profit on sale of investments. The board of directors at a meeting here on Saturday recommended a dividend of 290 per cent or Rs 29 per share (215 per cent) for the year under review. . against Rs 6.The net profit for the year ended March 31.121 crore. Mr Bhatt said.729 crore during the corresponding period last year.

5 per cent to Rs . “It was due to the rise in overhead costs due to branch expansion.695 crore).92 - .” A 30 per cent growth in advances also contributed to the growth of net profit.617 crore contributed by commission. Domestic deposits grew by 33 per cent at Rs 6.627 crore) and term deposits grew by 41. “Historically.Pillar of growth Treasury would continue to be an important pillar of growth for the bank. We are now trying to offer products at par with other multinational banks. he said. which was earlier growing in single digits. Referring to the lower growth in net profit in 2008-09 vis-À-vis 2007-08 when the growth was 48 per cent.22.” Mr Bhatt said explaining the reason for the growth in the bank’s net profit.396 crore (Rs 2.589). also grew by 30 per cent in 2008-09. he said.340 crore (Rs 5. liquidity overhang and the cost of carrying it and also on account of higher provisioning for salary revisions and for pensions.23.” he pointed out.73. “There has been a robust growth in our advances not only in terms of volumes but also in terms of income. loan processing fee and account maintenance charges.691 crore (Rs 8. he maintained. Our fee-based income. Other income increased by 46 per cent at Rs 12.96. treasury was our residual business but this year treasury has registered outstanding growth. Current Account and Savings Bank Account (CASA) deposits increased by 22 per cent to Rs 2. exchange. Performance The bank’s core fee-based income for the year ended March 2009 grew by 29 per cent to Rs 7.

“International NPAs increased by 955 crore as a result of economic slowdown. the bank was hopeful of either maintaining or registering a slight improvement in its NIM.651 crore.4. lesser growth and lower yield on advances has put a pressure on our margins. he said.76 per cent (1.22.540 crore (Rs 4. However.48. .331 crore).774 crore of which Ratnagiri Power alone contributed to Rs 1. The creditdeposit ratio declined to 66. Domestic NPAs increased by Rs 1. Advances went up 30 per cent at Rs 5. NPAs flat The net non-performing assets remained almost flat at 1.944 crore (Rs 2.07 per cent). on the other hand there has been a decline in credit offtake. with the cost of deposits coming down.000 crore a day.962 crore).59 per cent). particularly in the US and Singapore.13 per cent).98. “There has been an unprecedented flow of deposits since November 2008 to the tune of Rs 1.93 per cent (3. This has led to a decline in CD ratio. The bank witnessed a two basis point dip in NIM in April 2009.81 per cent (14. “The huge growth in deposits.78 per cent).63 per cent (72.22. The share of bulk deposits to total deposits declined to 10.” Mr Bhatt said and added that the bank would be able to manage NPAs at the current level.” Mr Bhatt said.93 - . The net interest margin (NIM) declined to 2.” Mr Bhatt observed.

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governments have long known that increasing access to rural and low-income finance was important. other studies have also emerged on the broader topic of microfinance. . In order to help get some kind of bearing on the impact of microfinance. India instituted a rural bank expansion program in 1977. Simultaneously. the impact of microcredit.” And it certainly was – providing two separate randomized studies on the impact of microcredit. Mexico did something similar in 1992. and the impact of microsavings (surprisingly. 2010 ⋅ David Roodman called 2009 a “milestone year for microfinance. certainly the literature of microfinance cannot be so new? After all.103 - . there seems to have been more work done on savings than credit).Literature Review Dweep Chanana ⋅ January 18. The selected papers are organized into three categories: the broader context. Yet. we present here a short literature review on how microfinance affects the lives of the poor.

had no effect on high income households. In 2006–-07. as a natural experiment and the 1992 and 1994 National Surveys of Income and Expenditures.Spandana October2009 Hyderabad. who come and go and might take Spandana’s money with them. evidence of crowding out of these instruments caused by the expansion is limited. Abhijit Banerjee. The effect was even higher for the poorest households in the sample: their saving rate increased by more than 7 percentage points in some cases.104 - . rejecting some districts as having too many construction workers. Results do not rule out the possibility that a considerable fraction of the increase in households’ savings could have come from new savings. Rachel Glennerster.FernandoAportelo. Results show that the expansion increased the average saving rate of affected households by more than 3 to almost 5 percentage points.IndianCentreforMicroFinance. in general. the expansion. targeted to low-income people. Esther Duflo. India The researchers from the Abdul Latif Jameel Poverty Action Lab (J-PAL) at MIT and the Indian Centre for Micro Finance worked with Spandana to randomize the rollout of its microcredit operations in Hyderabad. Effects on households’ saving rates and on different informal savings instruments are considered. Spandana chose 104 areas of the city to expand into eventually.BankofMexico December 1999 This paper assesses the impact of increasing financial access on low-income people savings. Furthermore. In the case of informal savings instruments. . Cynthia Kinnan. India’s fifth-largest city. MIT Jameel PovertyActionLab. The paper uses an exogenous expansion of a Mexican savings institute.

2004. 1-26 . Managerial Finance. Issue 1. Vol. 2004. initial public offerings. 9. Researchers followed up by surveying more than 6. The surveyors made sure not to visit an area until Spandana had been there at least a year. Journal of Small Business Management. Brau* Department of Finance Jim Brau is Assistant Professor of Finance and Goldman Sachs Faculty Fellow at the Marriott School. Issue 1. They surveyed in “treatment” areas (ones where Spandana worked) and control ones (where it did not yet). His research includes entrepreneurial finance. Journal of Business. Brigham Young University. He has published in the Journal of Financial Economics. pp. Journal of Entrepreneurial Finance and Business Ventures. restricting their visits to families that seemed more likely to borrow: ones that had lived in the area at least three years and had at least one working-age woman. and microfinance/microenterprise. Journal of Financial Research. and Journal of Business Education among others.105 - . pp.000 households between August 2007 and April 2008. Journal of Entrepreneurial Finance. 1-26 James C. Vol.Spandana started lending in a randomly chosen 52 of the 104. 9. Journal of Entrepreneurial Finance and Business Ventures.

Contemporary Economic Policy. so do the challenges faced by practitioners. innovative solutions. World Development.Gary M.106 - . As the sector expands. including Journal of International Development. Journal of Developmental Entrepreneurship. Theoretical and empirical studies show that one important solution to some of these challenges is a system for sharing credit information between lending institutions. Brigham Young University. NonProfit and Voluntary Sector Quarterly. . but it is critical to explore countries with underdeveloped CIS and consider nontraditional. His articles on microfinance and international development have appeared in a number of peer-reviewed academic journals. Woller Department of Public Management Gary Woller is Associate Professor of Public Management at the Marriott School. Gary is co-founder and co-editor of the Journal of Microfinance. December 2005 Valerie Rozycki Advisor: Dr. and the International Review of Economics and Finance. Policy Studies Journal. Experiences with CIS for microfinance reveal trends and lessons about successful models. David Brady Department of Public Policy Microfinance as a tool for economic development has been growing in importance in the past three decades.

Stanford.Authors: Harper. Volume 17. and it is crucial that we share the knowledge gained from these efforts. March 2006 .107 - . 30-39(10) Publisher: Practical Action Publishing Linking the formal financial sector with poor microfinance clients seemed impossible even a decade ago. but the credit (and most of the risk) is directly between ICICI Bank and the SHG or individual clients. This article explains the model and provides two case study examples. However. PSS and BISWA. lending decisions are not optimized and the performance of microfinance institutions suffers. Kirsten. USA 94309 Microfinance services (predominantly the disbursement of very small loans to the poorest sectors of society) have expanded rapidly over the past three decades and have much potential to affect grass-roots economic development. One of India's most innovative linkage models is ICICI Bank's recent 'facilitation linkage' with several NGO/MFIs. maturing microfinance sectors often operate sub-optimally. Several countries have solved this problem with formal systems for sharing credit information. When lending institutions lack complete information about the creditworthiness of borrowers. pp. to illustrate this linkage methodology. Malcolm. Increasingly such linkages are emerging. Marié Source: Small Enterprise Development. without proper information sharing systems in place. Valerie Rozycki Stanford University. Number 1. according to which the latter takes the responsibility of monitoring and recovering loans from individuals and self-help groups. Current research focuses on country cases . CA. either spontaneously or enforced. This approach is based on a partnership between ICICI Bank and selected NGOs/MFIs.

Despite various initiatives taken for the expansion of the commercial bank branch network into the rural and semi-urban areas of the country to promote lending to key disadvantaged and underprivileged economic sectors. saving mobilized etc. July 2006 Madhurima Bhattacharyay An outstanding economic growth and a bright future prospect notwithstanding. particularly the rural poor. their socio-economic impact did not match expectations as planned.) and in many developing countries.and potential .where such systems have been successful as well as on general analyses of barriers to creating such systems. MFIs continue to expand their reach (in terms of clients served. funds disbursed. poverty reduction is still the most daunting challenge for India. Microfinance has achieved prominence among development strategies because of its scale and continued success. is essential for attaining income poverty as prescribed in the Millennium Development Goals (MDGs).role of the financial sector. India needs to develop a more inclusive financial market by enhancing direct access to finance for poor communities and small rural businesses.In the last two decades . particularly microfinance. in developing a more inclusive and robust economy. Strengthening access to financial services for the rural sector. Kofi Annan United Nations secretary-General Micro finance is the provision of financial services to the economically active poor.the field has grown in both size and sophistication as measured. by the number and the stage of development of the Microfinance Institutions and the clients they serve. resiliency to shocks and continued innovation. This paper examines the current . This paper which examines rural finance for the poor and its impact on income poverty also analyzes the .108 - . they are among the most profitable financial institutions operating.in terms of sustainability.

2007 . All MFIs.performance of the rural financial services system in India and outlines trends and patterns in farmers’ access to financial services over the course of the past half-acentury. largely successful Self-Help Group (SHG) programs. MFIs operating as co-operatives. 34 Morduch. with particular emphasis on commercial bank-linked. it analyzes the performance of microfinance institutions (MFIs) in the rural area. operating in the form of trusts. societies and co-operatives will now be regulated by NABARD. Amlan Ghosh August 9.28 The Indian government has taken a bold step in introducing a new microfinance law to bring microfinance institutions under prudential supervision. 2010 The waves of liberalization. service sector has witnessed massive growth in the form of innovative products. the National Bank for Rural and Agricultural Development (NABARD) will regulate the microfinance sector in India.K. In particular. Working Ppaer No. 1014. J. expansion of services and wider outreach. NY. which will be promoted by NABARD. However. Ambuj Gupta University of Petroleum and Energy Studies Dehradun (U. The Union Cabinet has cleared the bill on 6th February 2007. and Haley. privatization and globalization have transformed the face of service sector in India. Financial services are no exception to his. On account of this. trusts and societies have to register under the Microfinance Development Council.109 - . The bill will be submitted in Parliament soon for approval. B. non-bank finance companies will not come under NABARD. The present study takes a sneak preview of various financial services developed after economic liberalization in India.) India August 24. Under the provision of the bill. New York University. 2002.

there is some evidence of credit constraints for India's SME firms that rely heavily on trade credit.110 - . India has experienced nothing short of an economic transformation since the liberalization process began in the early 1990's. still dominate the landscape and investor protection.Finance Department. Family businesses. there is some evidence of credit constraints for India's SME firms that rely heavily on trade credit. In the last few years microfinance has contributed in a big way to financial inclusion and is now attracting venture capital and for-profit companies . The banking sector has seen major changes with deregulation of interest rates and the emergence of strong domestic private players as well as foreign banks. . To keep the momentum of the growth at present level India needs to serve the financial need of the excluded masses to bring them into the main stream of developmental process. with a soaring stock market. rural finance is in back foot. At the same time. the Indian financial system has been witnessing an exciting era of transformation. European Corporate Governance Institute (ECGI) With recent growth rates among large countries second only to China's. and a rapidly developing derivatives market.both domestic and foreign. however. appears to be less effective owing to an overburdened legal system and corruption. In the last few years. significant foreign portfolio inflows including the largest private equity inflows in Asia.Since the opening up of the economy and reforms in the banking sector in India. Corporate governance norms in India have strengthened rapidly in the past few years. At the same time. Franklin Allen University of Pennsylvania . This article examines the problems of formal banking in providing credit (micro) to the poor of rural and urban areas in the present era and suggests that the POSB can be used to cater the financial need of rural India where MFIs have very little presence in total demand of finance. Rajesh Chakrabarti Indian School of Business The banking sector has seen major changes with deregulation of interest rates and the emergence of strong domestic private players as well as foreign banks. while excellent on paper.

The methodology includes the overall research design. magazine. The primary data has been collected with the help of questionnaire as well as personal observation book. The methodology used in the study consistent of sample survey using both primary & secondary data.journals have been referred for secondary data. The objective is to examine all the issues involved & conduct situational analysis. sampling procedure & fieldwork done & finally the analysis procedure.Research methodology Research methodology is a methodology for collecting all sorts of information & data pertaining to the subject in question.111 - . Definition of Research . The questionnaire has been drafted & presented by the researcher himself.

It is a systematic and a replicable process which identifies and defines problems.The word research is derived from the Latin word meaning to know. It disseminates the findings to contribute to generalizeable knowledge. Reductive.112 - . OBJECTIVE OF RESEARCH Research design phase :This phase mainly involve stating the conceptual structure within which research would be conducted.  Replicable.  Logical. It employs well designed method to collect the data and analyses the results. so decisions are based on data collected. within specified boundaries. so procedures can be duplicated or understood by others. The main steps involved in this phase are as: Sampling Plan: . so others may test the findings by repeating it. so it investigates a small sample which can be generalized to a larger population.   Empirical. The five characteristics of research presented below will be examined in greater detail later are:  Systematic problem solving which identifies variables and tests relationships between them.

This type of sampling where each & every item in the population has an equal chance of inclusion in the sample. a Simple Random Sampling technique is used. Sample Size:  Sample of 50 people was taken into study. Primary data was collected through Questionnaire.. Sample unit: Under the study the customers are considered the sample unit in Jaipur District.113 - . and their data was collected. Sampling Technique:  To study the Project. Data Collection: Collection of data is done by  Secondary Data & through  Questionnaire i. Data Analysis: .The sample was selected for the study by convenient method.e.

The tools that have been used for analyzing data & inference drawing are mainly statistical tools like percentage. . ranking. etc. As per questionnaire and market surveys I have find out different responses from different people. and also using quantitative techniques (by using these techniques) accurate information is obtained. the respondents who responded logically were taken into account while going into statistical details & analysis of data. Statistical tools used for analysis:  Out of the total respondents. Classification & tabulation of data:  The data thus collected were classified according to the categories. According to their responses I analyze the findings and draw certain remarks. two dimensional. I’m able to analyze customer’s views. Data Interpretation:  Interpretation of data is done by using statistical tools like Pie diagrams. After data collection. averages. The resultant tables were one dimensional.  Bar graphs. ideas and opinions related to Advance Product & investment and about SBI & ICICI .114 - . counting sheets & the summary tables were prepared.

has reduced headcount through a voluntary retirement scheme and is cautious about adding headcount. is setting up regional hubs where its workforce would .FACTS.744. FINDINGS & ANALYSIS Facts & Analysis: ADVANTAGES OF ICICI OVER SBI: ICICI is growing at a very fast rate with a total asset of Rs. on the other hand. the two are taking divergent paths. which had over 1 lacks employees. ICICI Bank. In the area of human relations.10 billion. SBI. 3.115 - .

be concentrated and plans to add 20.  State bank of India has vast experience in the field of SME  (Small and Medium Enterprises) Financing.000 to its headcount every year. is planning to add another 3.116 - .  SBI group.000 branches.  SBI offers flexible tenures of loan repayment. So this bank enjoys the trust of its Customers a lot.  Some of the training programs are attended by bankers from  banks in other countries.  SBI have four national level Apex Training Colleges and 54  Learning Centers spread all over the country the Bank is  Continuously engaged in skill enhancement of its employees. The group plans to add between 75. 00. ADVANTAGES OF SBI OVER ICICI:  SBI is the largest and oldest bank of India.000 branches. Its major stocks are held by government of India.000 and 1. which has over 10. ICICI Bank is also set to outdo SBI is in its international book .An area where it has been very aggressive. .  It is also set to become the largest issuer of debit cards and is the second largest credit card issuer.  As it is the oldest name so it enjoys public trust a lot.000 employees in the next few years.

000 branches in FY09. we believe SBI’s liability franchise will strengthen further with the opening of ~2.Six reasons why we currently prefer SBI over ICICI Reason #1 . .117 - .Stronger CASA base  CASA franchise of 42% provides comfort on margin sustainability for SBI.  Though CASA for ICICI will also improve from the current 27%.

.Reason #2 – Asset-liability match of SBI is better  SBI has a better asset-liability match.  ICICI has 43% of its liabilities with more than 1-year maturity. while ~61% of assets have more than 1-year maturity. while ~71% of assets have more than 1-year maturity.118 - . with 60% of liabilities of more than 1-year maturity.

 Cost ratios of SBI Life are better than ICICI Prudential Life due to its strong bancassurance model and better agency productivity.Proxy insurance plays on both  Any upside on insurance reforms can be played through SBI as well.119 - . . Reason #3 .

. SBI’s loan book is well diversified across a variety of segments.SBI has more diversified loan book  While asset quality risks persist for both banks.120 - .Reason #4 . ICICI’s loan book is still skewed towards retail.

 According to our analysis. Reason #5 .121 - .Market share gain in favor of SBI . over the next 18 months the retail segment is likely to be more vulnerable than the corporate segment.

while for ICICI it was 2% as at Q1FY09.122 - .Return ratios for SBI are better . SBI will continue to gain market share in both advances and deposits at ICICI’s expense due to the latter’s strategy of going slow. Reason #6 .  Deposit growth for SBI was at 25%.  Advances growth for SBI as at Q1FY09 was 28% versus 13% for ICICI.

123 - . SBI is trading at 0.0x FY10E adjusted book (assuming value of subsidiaries for SBI at INR 301 and for ICICI at INR 283 on FY10E basis). Key risks . while ICICI is trading at 1.  ROE for ICICI is expected to be in the range of 8-10% in FY09-10E.94x FY10E adjusted book. while that of SBI will be in the range of 14-16%.

unlike the DSA model that ICICI follows. Graphical Representation of data . the bulk of SBI’s loan origination happens through branches where underwriting standards are stricter. revised loan waiver guidelines could keep SBI’s Q2FY09 profits muted due to higher provision requirement. while we expect NPAs to increase for SBI in FY10E and FY11E.  For ICICI.124 - . Hence. considering the aggressive balance sheet growth. we do not expect SBI to go through a similar experience as ICICI. SBI’s low provisioning coverage (44%) will lead to higher provisioning cost in FY10E. the expectation of bad asset quality is priced in and further negative surprises look unlikely.  Also. Like any other PSU bank.

Q. OF PEOPLE 62% 36% 2% 0 31 18 1 0 50 Chart-1 .1 On which bank you depend for your regular transaction? Table-1 SBI ICICI HDFC OTHER TOTAL NO.125 - .

126 - . Q.70% 60% 50% 40% 30% 20% 10% 0% SI B IC I IC H F DC OTH ER It has been observed that approximately 62% correspondents are using the service of SBI for their daily transaction.2 Are you aware of products & services provided by SBI and ICICI? . around 36% of people are using ICICI Bank for their transaction and only 2% of people are using HDFC . It also shows that SBI have the highest market position .

of People 90% 10% 45 5 50 Chart-2 .Table-2 YES NO Total No.127 - .

In this 10% most of the people are from typical rural area (Farmers). Q.3 Are you aware of the micro finance products of SBI and ICICI? .128 - . the rest 10% have no idea about the product they are using.90 % 80 % 70 % 60 % 50 % 40 % 30 % 20 % 10 % 0 % YS E NO From the above data it is clear that most of the customers (around 90%) of Jaipur have the idea about the product & services of SBI.

Table-3 YES NO Total No. of People 80% 20% 40 10 50 Chart-3 .129 - .

80 % 70 % 60 % 50 % 40 % 30 % 20 % 10 % 0% Y ES NO It is clear that most of the people have the idea about the advance product of SBI.130 - . Almost all the 80% people who have the idea about the advance product are the user of SBI product & service. Q.4 which product of SBI or ICICI you have used? .

Table-4 Fix Deposit INSURANCE MF EQUITY OTHER 30% 20% 30% 16% 4% 15 10 15 8 2 Chart-4 .131 - .

5 what do you feel about the services providing by SBI or ICICI in micro finance products? .132 - . Q.30 % 25 % 20 % 15 % 10 % 5 % 0 % F Deposit ix INS ANCE UR MF EQUITY OTHER 30% of People in Jaipur use Fix deposits and others 30% use Mutual funds and about 20% use Insuranse and rest use other products of SBI & ICICI Bank.

133 - .Table-5 Good Average Best 40% 24% 36% SBI & ICICI 20 12 18 Chart-5 .

134 - . Q.40% of people said that the service provide by SBI & ICICI is good & 36% said it is best & 24% of people said that it is average.6 according to you which factors are most crucial for rapid growth of MFIs? . All of them satisfy with the product provide by SBI.40% 35% 30% 25% 20% 15% 10% 5% 0% Good Averag e Bes t From this it is clear that the service provide by SBI in its advance product is good in between the customer.

of people 32% 24% 20% 24% 16 12 10 12 50 Chart-6 .135 - .Table-6 Low interset rate Availability Instalment factor Processing & sanctioning of loan Total no.

Q.35% 30% 25% 20% 15% 10% 5% 0% Instalm fa ent ctor L interset rate ow Ava bility ila P rocessing& sa nctioningof loa n From this it is clear that the low interest rate is major factor for the success of Banks and after that availability and processing time comes.136 - .7 Do you think Microfinance has helped in Rural India? .

of people 78% 22% 39 11 50 Chart-7 .Table-7 Yes NO Toal no.137 - .

80 % 70 % 60 % 50 % 40 % 30 % 20 % 10 % 0% Y es NO It is clear that most of the people said that Micro finance helped in Rural areas and rest of the people says no about this. Do you agree? .8 Microfinance concept makes relevance in rural India as well as urban area. Q.138 - .

Table-8 Yes No Total no. of people 70% 30% 35 15 50 Chart-8 .139 - .

70% 60% 50% 40% 30% 20% 10% 0% Y es No It is clear that most of the people said that Micro finance concept has relevance in rural areas and rest of the people says no. 9 Which features you like most in SBI and ICICI bank? .140 - . Q.

Table-9 Various products Attractive ROI Transparency Simple & fast processing Strong Capital Any other feature Total no. of people 20% 24% 22% 20% 12% 2% 10 12 11 10 6 1 50 Chart-9 .141 - .

2 5% V arious products 2 0% Attractive R OI Trans parency S ple & fas im t proces ing s 1 0% S trong C apital Any other feature 5 % Total no. . 10 According to you which factor can enhance the popularity of SBI and ICICI micro finance products. Q. of people 1 5% 0 % From this it is clear that attractive ROI provided by banks attracts customers different products and fast response also attracts the mind of customers.142 - .

of people 40% 32% 28% 20 16 14 50 Chart-10 .143 - .Table-10 Customer relationship Transparency Low charges Total No.

Project Findings : .40 % 35 % 30 % 25 % 20 % 15 % 10 % 5 % 0 % C tom us er relations hip trans parency L charg ow es It is clear that most of the people said that customer relationship affects the customers and 32 % people said that it depends on transparency and rest of the people says that it depends on low charges.144 - .

 It has been observed that approximately 85% correspondents are using advance  product of SBI and 15% are not using any type of advance product of SBI in Delhi & NCR.  Biggest problem people don’t invest their money in Share due to lack of knowledge.  Government employees are more concern than private employees for advance product.  The study shows all the important aspects of Bank loan schemes & how this affects to current financial trends. there is a great opportunity to compete with ICICI Bank & to retain its customer by fulfilling the requirement of customer in SBI and ICICI advance product.  Many customers have no time to call customer care so that they are not able to know about the service & features of SBI advance product.  Most of the customers at Delhi & NCR prefer to take loan from SBI. From this project it is found that SBI advance product having the 1st place in the market at Delhi & NCR. Approximately 43% of advance product users said that the service of SBI in advance product is excellent.145 - .  This live project topic gives opportunity to know about various loan schemes provided by the bank.  People want securities that’s why choose SBI than ICICI bank.  All of SBI customers are satisfied with the services provided by the bank.  More flexible requirement given by this bank.  It also describes the core features of borrowers as well as bankers for financing loan which is a complex process. .  Creating an efficient and effective organization.  A response from customer care is so clear & good.

146 - .REASONS FOR HIGHLY USE OF SBI ADVANCE PRODUCT :      Biggest bank of india Attractive rate of retorns Transparency Simple & fast processing Quick processing REASON S FOR HIGHLY USE OF ICICI ADVANCE PRODUCT & INVESTMENT :  Less paper work  Attractive roi but less than sbi.  Transparency  Quick prosessing .

especially in the retail segment. Strong economic growth would generate higher demand for funds pursuant to higher corporate demand for credit on account of capacity expansion. could impact retail growth of SBI and hence slowdown in earnings growth. Delay in technology upgradation could result in loss of market shares.147 - . Growing retail & SMEs thrust would lead to higher business growth. Slow down in domestic economy would pose a concern over credit off-take thereby impacting earnings growth. Management indicated a likely pension shortfall on account of AS-15 to be close to Rs50bn. Stiff competition. Insufficient capital may restrict the growth prospects of the bank going forward.SWOT ANALYSIS OF SBI Strength/ Opportunities:  The growth for SBI in the coming years is likely to be fueled by the following factors: Continued effort to increase low cost deposit would ensure improvement in NIMs and hence earnings. Contribution of retail credit to total bank credit stood at 26%. Significant thrust on growing retail book poses higher credit risk to the bank.    Weakness/ Threats:   The risks that could ensue to SBI in time to come are as under: SBI is currently operating at a lowest CAR.      .

It also provides D-Mart account facilities on-line. And there are also proper Ventilation & sanitary facilities for the employees of the bank. . All the computerized machines are located in suitable manner & are very useful to the customers & staff of the bank. of services i. 8-8 services to the customers.e.SWOT ANALYSIS OF ICICI BANK  STRENGHTS: 1) Online Services: ICICI Bank provides online services of all it’s banking facilities. 6) Late night ATM services: ICICI bank provides late night ATM services to the customers. proper sitting arrangements to the customers. They provide faster services along with bonding & personal relationship with the customers.] 2) Advanced Infrastructure: Branches of ICICI Bank are well equipped with advanced technology to provide the customers with taster banking services. This service is one of it’s kind & is very helpful for the customers who are in urgent need of money. Banking services: Compared to other bank ICICI bank provides long hrs.148 - . 3) Friendly Staff: The staff of ICICI Bank in all branches is very friendly & help the customers in all cases. 5) Other Facilities to the Customers & Employees: ICICI Bank also provides other facilities like drinking water facilities. 4) 12 hrs. so a person can access his account from anywhere he is. at night in certain branches. The ATM centers of ICICI bank works even after 11:00pm. [D-Mart is a dematerialized account opened by a salaried person for purchase & sale of shares of different companies.

The bank can recruit these students through tie-ups with colleges. But this falls in the 4th quadrant so the bank should neglect it. 2) Less Credit Period: ICICI bank provides credit facilities but only upto customers which may annoy them. That means the bank can have a tie-up with a insurance company. . Weakness: 1) High Bank Service Charges: ICICI bank charges highly to customers for the services provided by them when compared to other bank & that is why it is only in the reach of higher class of society. funding towards natural calamities. The bank will advertise & promote the different policies introduced by the insurance company & convince their customers to buy insurance policies. This will also upto large extent help the bank earn profits & popularity. Such students will surely prove as an asset to the bank. 4) Associate with social cause: The bank can also associate itself with social causes like providing relief aid patients.149 - . Even when the credit period is not over it sends reminder letters to the  OPPORTUNITIES: 1) Bank –Insurance services: The bank should also provide insurance services. 3) Recruit professionally guided students: Bank & Insurance is a special non-aid course where the students specialize in the functioning & services of the bank & also are knowledge about various tax policies. limited period. 2) Increase in percentage of Returns on increase: The bank should provide higher returns on deposits in comparison of the present situation.

The decisions made by different managers are diverse and any one wrong decision can laid to heavy losses to the bank. Standered Chartered. 3) Decentralized Management: Each branch manager is given the authority of taking decisions in their respective branches. The confidential information of the customers can be leaked easily through the e-mail ids. THREATS 1) Competition: ICICI Bank is facing tight competition locally as well as internationally. This creates problems to the less educated people. HSBC. But this threat falls in the 4th quadrant so its negligible. HDFC also provide equivalent facilities like ICICI do and also ICICI do not have consistency in its international operation.150 - . Bank like CITI Bank. 2) Net Services: ICICI Bank provides all kind of services on-line. The company can avoid this threat. There can be easy access to the e-mail ids of the customers through wrong people. . ABM. 4) No Proper Facilities To Uneducated customers: ICICI Bank provides all services through electronic computerized machines.

Their growth means India’s growth. SBI and ICICI are both India’s largest banks. . This includes assets.CONCLUSION: The gap between SBI and the rest of the bank is so wide that SBI comes out as number one on almost all counts. number of employees. And by this competition customers will be benefited and Indian economy will get a boost. The only place that ICICI Bank has been able to upset the monolith has been in the area of market capitalization. branch network. However. ATM network. and size of profits. One reason why SBI has lagged in market cap despite its size has been its inability to unlock value from its various businesses.151 - . there are signs that this is changing and the bank is making attempts to realize the value of its investments in the life insurance and asset management business.

repayment period and any types of charges.Suggestion & Recommendation  Customer awareness programme is required so that more people should attract towards advance product.  SBI and ICICI should more focus on Retaining existing customers.  It is the duty of the bank to disclose all the material facts regarding advance product.152 - .  SBI customer care should more concern about the fastest settlement of customer  problems. ICICI bank is already doing. etc. well educated & proper trained to convince the people about different advance product.  For the better service new offers would be require.  Both should more concern about physical verification rather than phone verification so it will avoid fraud or cheating.  Agents should be trained.  SBI and ICICI must take feedbacks of customers regarding features & services.  Both bank must focus on Segmentation based on customer knowledge Product offering based on customer demand.  Special scheme should be implemented to encourage both customer and agents. like ROI.  Before deducting or charging any monetary charge SBI & ICICI must consult with customer.  Advance product selling agents must not give any type of wrong information regarding advance product. .

 Agents should be trained.Suggestions given by the consumers at the time of survey:  There is more time period for repayment of education loan.  SBI should take steps to solve customer problems immediately.  Loan sanction date should be according to customer convenient.  Education loan should be providing to private college also which is not under AICTE or any kind of University.  A customer awareness programme should be taking place in rural area.  Guarantee should give in investment money in share market. well educated & proper trained to convince the people about different advance product.153 - . .

2 Are you aware of products & services provided by SBI and ICICI? a) YES b) NO Q.154 - .3 Are you aware of the micro finance products of SBI and ICICI? a) YES b) NO ._____________________________________ Occupation-__________________________________ Contact Detail -_______________________________ Q.Appendix Questionnaire Name .1 On which bank you depend for your regular transaction? a) SBI b) ICICI Bank c) HDFC Bank d) Other Bank. Specify (_____________) Q.

155 - .4 which product of SBI or ICICI you have used? a) Fix deposit b) Insurance c) Mutual Fund d) Equity e) Other. 5 what do you feel about the services providing by SBI or ICICI in micro finance products? a) Good b) Average c) Best Q.7 Do you think Microfinance has helped in Rural India? a)Yes .6 according to you which factors are most crucial for rapid growth of MFIs? a) Low interest rate b) Availability c) Instalment factor d) Processing & sanctioning of loan Q.Q. Specify ( ______________ ) Q.

156 - . specify ( _____________ ) Q. 9 Which features you like most in SBI and ICICI bank? a) Various Product b) Attractive ROI c) Transparency d) Simple & fast processing e) Strong capital f) Any other feature. 10 According to you which factor can enhance the popularity of SBI and ICICI micro finance products.8 Microfinance concept makes relevance in rural India as well as urban area. a) Customer Relationship b) Transparency c) Low charges . Do you agree? a) Yes b) No Q.b) No Q.

1. 1 2 DETAILS Concept of Financial System Financial System PAGE NO. 6 7 8 9 10 The Broking House from where people using e-Broking Service prefer to invest The features liked by people using e-Broking Service The age of the people not using e-Broking Service The occupation of the people not using eBroking Service The yearly income of the people not using e102 104 106 107 108 PAGE NO. 11. 9. 8. 13. 3. 2. 7. of Users and Non Users of e-Broking The age of the people using e-Broking Service The occupation of the people using e-Broking Service The yearly income of the people using e-Broking Service 10. 5. 6 44 57 85 96 98 99 100 101 .LIST OF FIGURES : SERIAL NO. 6. 14. 41 41 LIST OF TABLES : SERIAL NO. 12. 1 2 3 4 1 2 3 4 5 DETAILS Angel Group of Companies List of Stock Exchanges Comparison of charges of Broking Houses Profession Tax on Salaries Mode of Data Collection No. 1. FIGURE NO. TABLE NO. 4.157 - . 2.

7. 6. GRAPH NO. 3. 4.Broking Service 15. 2. 98 99 100 101 102 104 106 107 108 109 . 1. 9. 11 The Broking House from where people not using e-Broking Service prefer to invest 109 LIST OF GRAPHS: SERIAL NO. 1 2 3 4 5 6 7 8 9 10 DETAILS Users and Non Users of e-Broking The age of the people using e-Broking Service The occupation of the people using e-Broking Service The yearly income of the people using eBroking Service The Broking House from where people using e-Broking Service prefer to invest The features liked by people using e-Broking Service The age of the people not using e-Broking Service The occupation of the people not using eBroking Service The yearly income of the people not using eBroking Service The Broking House from where people not using e-Broking Service prefer to invest PAGE NO. 10.158 - . 8. 5.

.159 - .

160 - .Questionare master sheet .

Bibliography: www.microfinancegateway.161 - .nabard.com www.geocities.org www.icmr.org .com www.icfai.org/microfinance/successstories www.empowerpoor.

February.C. 1998 CIA. Washington D.. A. “Key Indicators 2006: Measuring Policy Effectiveness in Health and Education”. “Asian Development Outlook: 2010”. Duflo. 2006. Central Intelligence Agency. World Bank. M. 2010. 38(3). “Microfinance Gains Momentum”. “A Snapshot of Micro enterprises in Hyderabad”. Manila. “Community development in sustainable livelihoods approaches An introduction”..” a Research Paper submitted to GRIPS (primarily based on the data and information provided by an unpublished report on “Poverty and SHG Movement in Uttarakhand: Role of Institutions and Policies for Performance Assessment of Self Help Groups in Poverty Reduction in the state of Uttarakhand in India).cia.. Glennerster. Banker. 2006.. 2005. ADB. R. M. Carney. Community Development Journal. Mimeo. Asian Development Bank. Banerjee... The Banker. E. Massachusetts Institute of Technology. The World Factbook 2009-India. Bhattacharyay.gov/library/publications/the-world-factbook/geos/in..162 - . “Improving Access to Finance to for India’s Rural Poor”. Asian Development Bank. Sustainable Rural Livelihoods: What Contribution can we make? Department for International Development (DFID).30 Brocklesby. https://www. E. 36448. “Performance Assessment of Self Help Groups in Poverty Reduction in the state of Uttarakhand in India.. A.ADB. and Fisher. Boston. Direction in Development. 2005 Basu P. D ed. Manila. 2003.html .

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