Icici Bank CBR

A
SUMMER TRAINING REPORT ON
For
Company Based Research
By
Harshad Sutar (20201)
Under the guidance of
Prof. Shagun Arora (Economics)

Prof. Ruchi Arora (Finance)
Prof. Veena Kumar (Marketing)
Prof. Shivani Kapoor (Organizational Behavior)
Prof. Sonal Gulati (Social Media)
Specialization: Marketing and Operations & Supply Chain
New Delhi Institute of Management

50 (B&C), 60, Tughlakabad Institutional Area, New Delhi-110062
E-mail: placement@ndimdelhi.org Website: www.ndimdelhi.org
A
SUMMER TRAINING REPORT ON
ICICI BANK
For
Company Based Research
By
Harshad Sutar (20201)
In Partial Fulfillment for the award of the degree

Post Graduate Diploma In Management
Batch 2020-2022
Specialization: Marketing and Operations & Supply Chain
New Delhi Institute of Management

50 (B&C), 60, Tughlakabad Institutional Area, New Delhi-110062
E-mail: placement@ndimdelhi.org Website: www.ndimdelhi.org
Harshad Sutar - 20201
Index
Table of Contents
1) Introduction to the Industry / Company
a) Overview of the Industry – this should include ........................................................................ 1
i) Major players in the space / Competitors ............................................................................ 1
ii) Scope & Impact of the Industry on Indian Economy ........................................................ 2
b) Company Background (as per headings given) ......................................................................... 6
i) Group Companies ................................................................................................................... 8
ii) Promoters / Senior Executives like Chairman & Managing Director, CEO, etc. ......... 9
iii) Hierarchy / Organisational Structure ................................................................................ 10
iv) Products & Services ............................................................................................................. 10
v) Geographical Spread ............................................................................................................ 10
2) Economics
a) List the factors on which the demand for the product depends upon. ................................. 11
b) Study the impact of COVID on the demand of your company. ........................................... 11
c) List the factors on which the supply of the product depends upon. .................................... 12
d) Study the impact of COVID on the supply of your company. ............................................. 13
e) Suggest Strategies how the company can increase the revenue of the company by
manipulation of prices ................................................................................................................ 14
f) Identify the market structure in which the company is operating ......................................... 14
g) Discuss the cost-effective strategy followed by your company
i) Economies of scope .............................................................................................................. 15
ii) Economies of scale ............................................................................................................... 15
h) Discuss the pricing strategy followed by the company based on the.
i) Competitors of the allocated company .............................................................................. 15
ii) Market structure ................................................................................................................... 16
3) Finance
a) Develop Transaction analysis of your company based on business activities .................... 17
b) Analysis of the CAGR on sales and Profit and the impact of major expenses on Profit ... 19
c) Reading of the Balance sheet of different sectors.
i) Identifying key Financial Performance Indicators. Compare it with industry
representative benchmark and three competitors of the firm .......................................... 19
ii) Identify the Solvency position of the company. Compare it with industry
iii) Identify the Profitability Position of the company. Compare it with industry
iv) Identify liquidity position of the company. Compare it with industry representative
benchmark and three competitors of the firm ................................................................... 24
v) Identifying Cost centres and Profit Centres of the company ......................................... 25
vi) Identifying the breakeven point of the company / Product ............................................. 26
4) Marketing
a) Identification of product portfolio............................................................................................. 27
b) The year in which these products were launched ................................................................... 28

c) Which product/ product lines are more profitable? ............................................................... 30
d) Identify 5 competitors of your product/company ................................................................... 31
e) Identify the region in which the product /product line is not doing well ............................. 31
f) How can a company identify the segments that make up a market? ................................... 32
g) How are companies and marketers responding to the new challenges posed by COVID?
....................................................................................................................................................... 34
h) Is your company positioning as a market leader, challenger, follower, or niche? ............. 35
i) How can companies both attract and retain customers .......................................................... 35
j) Discuss the distribution channel of your company ................................................................. 36
5) Organization Behaviour
a) Write the mission, vision of the company and draw the company organizational structure.
....................................................................................................................................................... 37
b) Discuss the workforce diversity of your company. ............................................................... 39
c) Prepare Employee attrition dashboard...................................................................................... 39
d) Discuss Wellbeing program adopted by the organization for dealing with Stress of an
employee’s? ................................................................................................................................ 40
e) What are the policies and techniques does the organization adopts to motivate their
employees? .................................................................................................................................. 41
6) Social Media
a) How many followers, does your company have on twitter? ................................................. 42
b) How many followers, does your company have on Instagram? .......................................... 42
c) What is the theme of posts on each of the social media? ...................................................... 42
d) How do you rate the current website on your company? ...................................................... 43
e) Identify the digital platform on which your company’s presence is the strongest. List
down reasons as to why the company is choosing one platform as compared to others. . 44
f) On the basis of digital posts of your company, identify any future innovation on that the
company may likely to get in. .................................................................................................. 45
g) What are the changes in the digital platforms of your company during the last five years?
If yes identify the reasons which led to this change. ............................................................. 45
1.Introduction to the Industry / Company
a)Banking Sector Overview
The Indian banking industry has its foundations in the 18th century, and has had a varied
evolutionary experience since then. The initial banks in India were primarily traders’ banks
engaged only in financing activities. Banking industry in the pre-independence era developed with
the Presidency Banks, which were transformed into the Imperial Bank of India and subsequently
into the State Bank of India.
The initial days of the industry saw a majority private ownership and a highly volatile work
environment. Major strides towards public ownership and accountability were made
with Nationalization in 1969 and 1980 which transformed the face of banking in India. The
industry in recent times has recognized the importance of private and foreign players in a
competitive scenario and has moved towards greater liberalization.
Reserve Bank of India is the Central Bank of our country. It was established on 1st April
1935 under the RBI Act of 1934. It holds the apex position in the banking structure. RBI performs
various developmental and promotional functions. The Indian banking system consists of 12 public
sector banks, 22 private sector banks, 46 foreign banks, 56 regional rural banks, 1485 urban
cooperative banks and 96,000 rural cooperative banks in addition to cooperative credit institutions.
In the evolution of this strategic industry spanning over two centuries, immense
developments have been made in terms of the regulations governing it, the ownership structure,
products and services offered and the technology deployed. The entire evolution can be classified
into four distinct phases.
1. Phase I- Pre-Nationalization Phase (prior to 1955)
2. Phase II- Era of Nationalization and Consolidation (1955-1990)
1
3. Phase III- Introduction of Indian Financial & Banking Sector Reforms and Partial
Liberalization (1990-2004)
4. Phase IV- Period of Increased Liberalization (2004 onwards)
Major Players in the Banking Sector
A) Reserve Bank of India:
Reserve Bank of India is the Central Bank of our country. It was established on
1st April 1935 accordance with the provisions of the Reserve Bank of India Act, 1934. It
holds the apex position in the banking structure. RBI performs various developmental and
promotional functions.
B) Commercial Banks:
Commercial bank is an institution that accepts deposit, makes business loans and
offer related services to various like accepting deposits and lending loans and advances to
general customers and business man.
C) Public Sector Banks:
Currently there are 12 nationalized banks in India. The public sector accounts for
75 percent of total banking business in India and State Bank of India is the largest
commercial bank in terms of volume of all commercial banks.
D) Private Sector Banks:
The private-sector banks in India represent part of the Indian banking sector that is
made up of both private and public sector banks. The "private-sector banks"
are banks where greater parts of stake or equity are held by the private shareholders and
not by government.
List of Private Sector Banks is:
Sr. Banks Established

No.
1. Axis Bank (earlier UTI Bank) 1993(as UTI

Bank)
2. Bank of Punjab (actually an old generation private bank since it was not 1993
founded under post-1993 new bank licensing regime)
3. Centurion Bank Ltd. (Merged in Bank of Punjab in late 2005 to become 1994
Centurion Bank of Punjab, acquired by HDFC Bank Ltd. in 2008)
4. Development Credit Bank (Converted from Co-operative Bank, now DCB 1995
Bank Ltd.)
5. ICICI Bank (previously ICICI and then both merged; total merger 1994
SCICI+ICICI+ICICI Bank Ltd)
6. Induslnd Bank 1994
2
7. Kotak Mahindra Bank 2003
8. Yes Bank 2005
9. Balaji Corporation Bank Limited 2010
10. HDFC bank 1994
11. Bandhan bank 2015
12 IDFC Bank 2015
E) Foreign Banks:
A foreign bank with the obligation of following the regulations of both its home
and its host countries. Loan limits for these banks are based on the capital of the parent
bank, thus allowing foreign banks to provide more loans than other subsidiary banks.
Foreign banks are those banks, which have their head offices abroad. CITI bank,
HSBC, Standard Chartered etc. are the examples of foreign bank in India. Currently India
has 46 foreign banks.
F) Regional Rural Bank (RRB):
The government of India set up Regional Rural Banks (RRBs) on October 2, 1975.
The banks provide credit to the weaker sections of the rural areas, particularly the small
and marginal farmers, agricultural labours, and small entrepreneurs. There are 56 RRBs in
the country. NABARD holds the apex position in the agricultural and rural development.
G) Co-operative Bank:
Co-operative bank was set up by passing a co-operative act in 1904. They are
organized and managed on the principal of co-operation and mutual help. The main
objective of co-operative bank is to provide rural credit.
The cooperative banks in India play an important role even today in rural co-
operative financing. The enactment of Co-operative Credit Societies Act, 1904, however,
gave the real impetus to the movement. The Cooperative Credit Societies Act, 1904 was
amended in 1912, with a view to broad basing it to enable organization of non-credit
societies.
Three tier structures exist in the cooperative banking:
i. State cooperative bank at the apex level.
ii. Central cooperative banks at the district level.
iii. Primary cooperative banks and the base or local level.
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Scope & Impact of the Industry on Indian Economy

The banking sector plays a significant role in lending financial support to the various
components of our economy – individuals and organizations alike. Without the banking structure,
the financial growth experienced by the Indian economy could have been inconceivable.
Banks contribute to economic growth in more ways than one. They are significant credit
generators for the economy and work in interesting ways. People deposit their savings in banks,
which are then channelized to entities/individuals in need of funds in the form of different types
of loans. Further, people use the loan amount to make investments, which in turn generates more
income for the economy.
Apart from income produced through credit-creation techniques, banks also generate
revenue for the economy in other ways. One example could be the income earned for lending
services to the people of the country. The income earned by bank employees in this case in the
form of wages and the like also contributes to the larger GDP pool. Besides, any expenditure
incurred by banks in the name of various bills, rent, stationery, internet cost, etc., also invariably
contributes to the country’s GDP.
The Indian banking industry plays an important role in the economic development of the
country and is the most dominant segment of the financial sector. Banks help channel savings to
investments and encourage economic growth by allocating savings to investments that have
potential to yield higher returns.
The banking sector plays a major role in the development of the economy, as it mobilizes
deposits and provides credit to various sectors across India. In India, the banking sector collects
surplus funds from customers/depositors in the form of deposits and channelizes them to borrowers
in the form of loans.
As per the Reserve Bank of India (RBI), India’s banking sector is sufficiently capitalized
and well-regulated. The financial and economic conditions in the country are far superior to any
other country in the world. Credit, market and liquidity risk studies suggest that Indian banks are
generally resilient and have withstood the global downturn well.
Indian banking industry has recently witnessed the roll out of innovative banking models
like payments and small finance banks. RBI’s new measures may go a long way in helping the
restructuring of the domestic banking industry.
The digital payments system in India has evolved the most among 25 countries with India’s
Immediate Payment Service (IMPS) being the only system at level five in the Faster Payments
Innovation Index (FPII).
4
Market Size
The banking sector is nothing less than the backbone of any economy. This pertains to the
Indian economy as well, where the banking sector is displaying the potential for becoming the
5th largest banking industry globally by 2020. With a continued boost in banking performance
bolstered by numerous technological advancements, the Indian banking sector is likely to assume
the 3rd largest position in the world by 2025.
The banking industry holds pride in contributing nearly 7.7% to the national GDP. Besides
that, our banks are the prime employment generators for almost 1.5 million people in the country.
The Indian banking system consists of 12 public sector banks, 22 private sector banks, 46
foreign banks, 56 regional rural banks, 1485 urban cooperative banks and 96,000 rural cooperative
banks in addition to cooperative credit institutions. As of July 2020, the total number of ATMs in
India increased to 209,989 and is further expected to increase to 407,000 by 2021.
Public sector banks’ assets stood at ₹ 72.59 lakh crore (US$ 1,038.76 billion) in FY19.
During FY16-FY20, credit off-take grew at a CAGR of 13.93%. As of FY20, total credit
extended surged to US$ 1,936.29 billion.
During FY16-FY20, deposits grew at a CAGR of 6.81% and reached US$ 1.90 trillion by
FY20. Credit to non-food industries increased 3.3% y-o-y, reaching US$ 1.26 trillion on February
28, 2020 and US$ 1.42 trillion on March 13, 2020.
Government Initiatives
 As per Union Budget 2019-20, the Government proposed fully automated GST refund
module and an electronic invoice system that will eliminate the need for a separate e-way
bill.
 Under the Budget 2019-20, Government proposed ₹ 70,000 crore (US$ 10.2 billion) to the
public sector banks.
 Government smoothly carried out consolidation, reducing the number of Public Sector
Banks by eight.
 As of September 2018, the Government of India made Pradhan Mantri Jan-Dhan Yojana
(PMJDY) scheme an open-ended scheme and added more incentives.
 The Government of India planned to inject ₹ 42,000 crore (US$ 5.99 billion) in public
sector banks by March.
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b) ICICI Bank Overview

The Industrial Credit and Investment Corporation of India (ICICI) was formed in 1955 at
the initiative of the World Bank, the government of India and Indian industry representatives. The
principal objective was to create a development financial institution for providing medium-term
and long-term project financing to Indian businesses.
Until the late 1980s, ICICI primarily focused its activities on Project finance, providing
long-term funds to a variety of industrial projects. ICICI Bank was incorporated in 1994 as a part
of the ICICI group. ICICI Bank’s initial equity capital was contributed for 75.0% by ICICI and for
25.0% by SCICI Limited, a diversified finance and shipping finance lender of which ICICI owned
19.9% at December 1996. Pursuant to the merger of SCICI into ICICI, ICICI Bank became wholly-
owned subsidiary of ICICI. Effective March 10, 2001, ICICI Bank acquired Bank of Madura, an
old private sector bank, in an all-stock merger.
ICICI Bank Introduced concept of branding in the Indian banking industry. Process, People
and Physical evidence – brought to life by ICICI. Product Innovation – Put the ‘customer first’ in
the true sense. Cash on the celebrity fever – Introduced the concept of brand ambassadors.
Introduction of DSA’s and DST’s. Unleashed the power of the internet – introduced the concept
of net banking and e-mail marketing. First bank to focus on retail banking as a driver for growth.
Comprehensive data center availability & data protection solutions.
ICICI Bank is a second largest private sector bank in India offering a diversified portfolio
of financial products and services to retail, SME and corporate customers. The Bank has an
extensive network of branches, ATMs and other touchpoints. It is at the forefront of leveraging
technology and offering services through digital channels like mobile and internet banking.
VISION
To be the trusted financial services provider of choice for our customers, thereby creating
sustainable value for our stakeholders
MISSION
To grow our risk-calibrated core operating profit by:
 Delivering products and services that create value for customers

 Bringing together all our capabilities to seamlessly meet customer needs
 Conducting our business within well-defined risk tolerance levels
6
KEY BUSINESS AREAS

RETAIL, RURAL AND SME BANKING
They offer deposit, credit and other financial products and services to individuals,
households and small businesses across India, through digital channels and extensive branch
network spanning urban and rural areas. We also offer select products like deposits and remittances
to non-resident Indians, and local market offerings in select international geographies.
WHOLESALE BANKING
They offer financial solutions to large and medium sized companies and their business and
channel partners, and to financial and government/public sector entities. The product offerings
include deposits, long-term finance, working capital, trade, cash management, transaction banking
and treasury management. In addition to their network in India, they leverage their international
presence to meet the cross border requirements of their clients.
TREASURY
There treasury operations comprise management of the Bank’s liquidity, government
securities portfolio and interest rate risk, proprietary trading, and foreign exchange and derivative
solutions for clients.
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Group Companies
8
Board of Directors
9
Hierarchy / Organizational Structure

The Corporate Hierarchy of ICICI Bank may differ from its different organizational
structures within the bank, however on a broader line prospective are mentioned below.
The organizational structure of ICICI Bank
1. Retail Banking
2. Wholesale Banking
3. Project Finance & Special Asset Management
4. International Business
5. Corporate Center
 TOP Level consists of BOD, Chairman, CEO, CFO, MD
 Middle Level Zonal Heads, Senior General Manager
 Lower Level Branch Manager
Hierarchy Levels
1. Apex Level - Branch Manager, Bank Manager
2. Functional Level - Technical Experts, Data Analyst
3. Operational Level - Cashier, Data Entry Operator
Products & Services

ICICI Bank offers products and services such as online money transfers, tracking services,
current accounts, savings accounts, time deposits, recurring deposits, mortgages, loans, automated
lockers, credit cards, prepaid cards, debit cards and digital wallets called ICICI pockets.
ICICI bank launched 'ICICIStack' which provides online services such as payment options,
digital accounts, instant car loans, insurance, investments, loans etc.
Geographical Spread
ICICI Bank Limited is an Indian multinational banking and financial services company
with its registered office in Vadodara, Gujarat and corporate office in Mumbai, Maharashtra. It
offers a wide range of banking products and financial services for corporate and retail
customers through a variety of delivery channels and specialized subsidiaries in the areas
of investment banking, life, non-life insurance, venture capital and asset management. The bank
has a network of 5,275 branches and 15,589 ATMs across India and has a presence in 17 countries.
ICICI Bank is one of the Big Four banks of India. The bank has subsidiaries in the United
Kingdom and Canada; branches in United States, Singapore, Bahrain, Hong Kong, Qatar, Oman,
Dubai International Finance Centre, China and South Africa; as well as representative offices in
United Arab Emirates, Bangladesh, Malaysia and Indonesia. The company's UK subsidiary has
also established branches in Belgium and Germany.
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2.Economics
a) List the factors on which the demand for the product depends upon.
Following are the Factors affecting Demand of the ICICI Bank Products:-
 The rate of interest on loans
 The number / value of monetary transactions that we expect to carry out
 The extent to which we also want to hold other financial assets, such as bonds, property,
saving (this is also influenced by the rate of interest) – this is known as the speculative
motive for holding money
 Changes in GDP
 The extent to which it is possible to use debit cards / credit cards i.e. the pace of financial
innovation
 The extent to which we might have to pay out large unexpected payments, for example,
for i.e. the precautionary motive
 The rate of anticipated inflation
 Income of the people – As income raises people will able to take loan as they are capable
to repay it.
 Economic Stability
 Education Facility- In retain section, Education Loan will be taken if the Education
Facility is available.
 Infrastructure – The Infrastructure performs a big role in retail loans for example, Car
loan will be taken place in area where the Road Infrastructure in present.
 Substitute Product- Rate of Interest for loan and Rate of Return on Savings of substitute
banks will affect the demand.
b) Study the impact of COVID on the demand of your company.
India’s second largest private banks appeared to have come through the first round
impact of the Covid-19 crisis with minor cuts and bruises, even though the fallout of any
extended slowdown in the economy remains uncertain. Most large private banks reported an
improvement in their net profit for the July-September quarter and a more modest increase in
bad loans than feared. Collection efficiency for most lenders improved and some returned to
growing their books selectively. To be sure, a truer picture of the Covid hit to banks will only
emerge over the next few quarters as special dispensations provided by the Reserve Bank of
India start to wind down.
Major private sector lenders such HDFC Bank Ltd., Axis Bank Ltd. and ICICI Bank
Ltd. have reported a sequential improvement in their gross non-performing assets ratio. The
headline gross NPA ratio, however, doesn’t capture all the stress on bank balance sheets. Loan
Growth Inching Up the second quarter of the current financial year also saw lenders like ICICI
Bank, Induslnd Bank and Yes Bank refocusing on growth, at least in their retail portfolios.
ICICI Bank reported a quarter-on-quarter loan growth of 3.32% in the three months
ended September, with total loans rising to ₹ 6.52 lakh crore. In the quarter ended March, the
quarter-on-quarter loan growth stood at 1.5%. Disbursals in the bank’s mortgage book had
11
risen to beyond pre-Covid levels, while auto loans have rebounded to levels seen before mid-
March.
The Repo rate had an indirect effect on home loan interest rates under the MCLR-based
system of lending as the marginal cost of funds includes the cost of borrowing. Under the
RLLR model, any change in the repo rate has a direct impact on home loan interest rates. The
RBI has reduced the repo rate by 115 basis points since February. The reduction has come on
the back of a 135-basis-point cut last year. The triple-digit cut in repo rate has led to a decline
in home loan rates, making homeownership cheaper. Low-interest rates coupled with
depressed real estate prices have made the Covid-19 pandemic an ideal time to buy your dream
home.
With low take off of real estate right now, if one has sufficient savings for margin
money, it might just be the right time to get your dream home at a negotiated price that would
suit your budget. Home loan rates are now moving southwards with each month passing by. A
house on discounted rates with lower interest rates on loans is an ideal combination.
The Indian economy would be impacted by this pandemic with contraction in industrial
and services output across small and large businesses, said the private sector lender. Private
sector lender ICICI Bank said business momentum re-bounded sharply in the second quarter.
Its retail loan book grew 6% sequentially during July-September and 12.8% year-on-year. The
bank’s management said that disbursement in housing loans during the second quarter crossed
pre-pandemic levels while auto loans remained the same. Credit card spends also recovered to
85% of pre-covid levels. The growth in small and medium enterprises (SME) loans was strong
with the lender disbursing ₹10,600 crore under the Emergency Credit Linked Guarantee
Scheme (ECLGS). Gross NPA as a percentage of total assets stood at 5.17% at the end of
September quarter compared with 6.37% in the previous quarter. The bank added fresh bad
loans worth ₹3,017 crore at the end of September quarter, of which retail loans
comprised ₹1,749 crore and corporate and SME loans made up for ₹1,268 crore. The
management added that trends in collections across the loan portfolio in September and
October were close to pre-covid levels and in line with or better than expectations. The demand
resolution for retail EMI and credit card portfolio was about 97% of pre-covid levels in
September.
All these factors including lower provisioning, profit from sale on investment in its
subsidiary, and higher net interests’ income helped the bank report a record growth in profit in
the second quarter. Net profit rose six-fold year-on-year to ₹4,251 crore for the quarter ended
30 September.
All this numbers are indicating that the demand for the financial services has increased
majorly in retail section loans. The Repo rate by the reserve bank was set at 4 % and Reverse
Repo Rate is at 3.35%. Which leads to low interest rate on home, car or any other loans which
depends on RLLR model. Because of which the demand for loan has increased after the initial
month of lockdown. And by the latest update this rates from RBI will be unchanged as it will
make easy availability of cash to pull a lid on market rates well into the next year. The GDP
contraction is also raising from estimated 9.5% to 7.5% for FY 2020.
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c) List the factors on which the supply of the product depends upon.
Factors affecting the supply of the product is as follows:-
The supply of money in a modern economy and financial system is determined by three
key factors:
 Open market operations – this is effectively the same as Quantitative Easing. The
Central Bank buys government bonds, effectively creating money
 The “reserve requirement” imposed on banks – this is the % of deposits made by
customers at the bank that the bank must keep hold of rather than lending it out
 The Repo rate set by the Reserve Bank of India – the rate of interest will influence how
many households and businesses are willing and able to borrow. Most money in a
modern economy is created by commercial bank lending so the rate of interest ultimately
does have a bearing on the supply of money
d) Study the impact of COVID on the supply of your company.
The supply is depend upon systemic liquidity which is abundant, the economic
weakness caused by the pandemic and uncertainty regarding normalization will impact
banking sector loan growth, revenues, margins, asset quality and credit costs.
Given the bank’s core operating profitability, liquidity and capital adequacy, the bank
believes it is well-placed to absorb the impact of the challenges in the environment. The bank
would look at further strengthening the balance sheet as opportunities arise. The bank will
closely monitor the evolving scenario and calibrate its business based on the assessment of risk
and profitability said the FY20 annual report of the bank.
As the demand is slowly rising because of low interest rates but because of low rate of
return on savings the money is not coming back in the bank so it will create a shortage of
liquidity for bank in future there for ICICI Bank is raising capital.
As part of its capital raising plans for the current fiscal year, the second largest private
sector lender earlier this month informed about the board's decision to raise up to ₹15,000 crore
in core capital through various routes.
Before this in June, it sold 3.96 per cent stake in its general insurance subsidiary ICICI
Lombard General Insurance for ₹2,250 crore and 1.5 per cent in life insurance subsidiary for
around ₹840 crore with an aim to strengthen the balance sheet.
In 2018-19, the bank had sold 2 per cent of its shareholding in ICICI Prudential Life
Insurance Company and made a net gain of ₹1,005.93 crore on this sale. The bank, which
raised ₹15,000 crore in August to bolster its capital ratios, has set aside ₹8,772 crore of
provisions for any potential covid impact.
The private sector lender said it would continue its focus on re-engineering business
processes and enhancing customer convenience leveraging technology, with digital banking
having received further impetus amid the constraints on traditional ways of working imposed
by the pandemic-related lockdowns.
Despite the challenging time, ICICI Bank said it is seeing opportunities to grow and
strengthen its franchise and it is using these opportunities to further accelerate the digital
journey of the bank and its customers.
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The bank is seeing increased utilization of its digital channels and platforms by its
customers and has ensured that the IT infrastructure is able to handle any unexpected surge in
digital transactions. The bank continues to monitor the situation in the country and would 'take
necessary steps to ensure safety of its people and continuity of its business operations
e) Suggest Strategies how the company can increase the revenue of the
company by manipulation of prices
The ICICI Bank Products for Accounts and Deposits category, the return interest rates
should increase so people will get attracted to save their money in Saving Accounts and Fixed
Deposits. But for the loan products, if the rate of interest is decreased than the substitute
products then people will chose ICICI Bank Service over its competitors.
The Changed Interest rates is the major factor to attract the customers. Along with that
the return policy terms, ease of documentation will also perform an important role. The Digital
Transformation of Banking services which is boost by Covid 19 will be a crucial factor to
increase the revenue. The banking from remote location is what everyone is seeking for in the
pandemic time and this requirement is only filled my providing digital platforms for
personalized banking. The firm should build its digital platforms so strong that less physical
contact with the customer will required.
f) Identify the market structure in which the company is operating
Literature suggests a decrease in banking concentration in India over the decade of the
1990s, with the market being Monopolistically Competitive, and a lowering of concentration
ratios up to 2009. 27 Some studies seem to comment on the slow rate at which the bank
concentration has decreased between years 2001-2009. There is a monopoly power of large
banks in India. The cohesive behavior of the players of industry and their decision affect the
entire industry as well as the Indian economy. Indian Banking Sectors have major 5 banks
which accounts for almost 50 % market share. The Top 5 Banks crating a monopolistic
competition. In Public Sector it is SBI and in Private HDFC, ICICI, Axis Bank are leading.
India’s Top 5 Banks by Market Share (Deposits & Credits)
Top 5 Bank Deposits Credits
State Bank of India 23.9% 22.5%
HDFC Bank 8.5% 9.6%
ICICI Bank 5.7% 6.3%
Axis Bank 4.7% 5.5%
Kotak Mahindra 1.9% 2.1%
Total Market Share of Top 5 44.7% 46%

Banks
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g) Discuss the cost-effective strategy followed by your company.

i. Economies of scope
Economies of Scope in Banking Industry Banks have economies of scope when they
offer multiple financial services at one place. Offering checking accounts, loans, and
investment services together allows a bank to spread the cost of its branches, staff, automatic
teller machines (ATM), and its Internet site over all products instead of having a separate
infrastructure for each product. The costs of providing each of these services individually
would be much greater than the costs of providing all services together.
ICICI Bank provides multiple financial services at one place only like. Bouquet of
Instant loan for pre-approved customers. Instant home Loan, Insta Top up Loan, Insta Auto
Loan, Insta Loan against Shares, GST Overdraft. Internet Banking is giving Convenient, fast
and safe platform for transacting, and transfer of funds, bill payments, opening fixed and
recurring deposit. iMobile – Next generation mobile app for retail customers having 200
services, iBizz- Mobile app for current account customers, Eazypay- One-stop solution for
merchants to collect payment from their customers. ICICI Partnership with fintechs to
provide solutions to capture the customer’s entire ecosystem. ICICIStack launched in
FY2020 offers nearly 500 services that cover almost all banking requirements of customers
in one place. The list includes digital account opening, loan solutions, payment solutions,
investments and insurance solutions. This provides a single digital place for all kinds of
services.
ii. Economies of scale
Economies of Scale in Banking Industry Banks have economies of scale when they
provide different ways for consumer to use a particular financial service. Like cash deposits,
transfer of payments etc.
ICICI Bank provide different ways to do banking like Internet banking, Phone
banking, Mobile banking etc. ICICI Bank accepts cash deposits by different ways like direct
cash deposits, through cheque, e-transfer (NEFT& RTGS), Cash deposit machines. ICICI
also provide different ways of transfer of payments like direct cash payout, Cheque payment,
internet banking, debit card, credit card. As these services provide comfort to public to do
banking transactions easily and this leads increase in inflow and outflow of cash in banks.
When there is increase in inflow of cash then the bank can lend more money in form of loans
to public and this leads to profit maximization. In Loan as well as saving return interest rates
we can see the economies of scale. As for saving amount below ₹ 50 Lakhs ICICI provides
interest of 3.25% and for above it is 3.75%. And for the loan amount also as per the personal
loan amount and type the interest rate varies in the range of 10.75-21 %.
h) Discuss the pricing strategy followed by the company based on the.
i. Competitors of the allocated company
HDFC Bank and Axis Bank are the 2 major competitors of the ICICI Bank. They
have a general range interest rate of personal loan which is 10.75- 24 %. But ICICI is seating
prices in narrow range which is 10.75%-21%. It gives more stability about the rates for the
personal loans but for saving account interest rates ICICI gives slight less return rate. For
15
below 50Lakhs it is 3.25% and for above 50 Lakhs it is 3.75%. Where the Axis and HDFC
have 3.50% for below 50Lakhs amount and 4% for above 50 Lakhs amount. For the Business
loan the current rates, HDFC Bank offers a lower interest rate of 15.65% on Business Loan
when compared to ICICI Bank which offers a Business Loan at 16.49%. Here ICICI is
bidding on its continent and fast services. Which is more digitalized than any other
competitors. iMobile application is providing 200 services at one stop. Digital channels
accounted for over 86% of the saving accounts transaction in FY-2019, iBizz- Mobile app
for current account customers, Eazypay- One-stop solution for merchants to collect payment
from their customers
ICICIStack launched in FY2020 is the most comprehensive digital infrastructure
available in the banking industry which enables millions of retail customers, merchants,
retailers, professionals, fintechs, startups, e-commerce players and corporates to continue
uninterrupted banking services digitally, without visiting any bank branch. ICICIStack offers
nearly 500 services that cover almost all banking requirements of customers in one place.
The list includes digital account opening, loan solutions, payment solutions, investments and
insurance solutions.
This is the pricing strategy for ICICI Bank as compare to its competitors. ICICI is so
strong at its customer and Digital services in retail, corporate and rural section that’s why
despite of slight lower return on savings ICICI is holding their ground and increasing their
market size.
ICICI Bank is first bank who has announced the launch of a fully digital mode of
payment at leading retail stores. Called ‘ICICI Bank Cardless EMI’ (Equated Monthly
Instalments), the facility enables lakhs of its pre-approved customers to buy their favorite
gadgets or home appliances just by using their mobile phone and PAN in lieu of wallet or
cards.
ii. Market structure
The pricing decisions or the decisions related to interest and fee or commission
charged by ICICI or any other Banks are found instrumental in motivating or influencing the
target market. The RBI and the IBA are concerned with regulations. The rate of interest is
regulated by the RBI and other charges are controlled by IBA. The Repo rate by the Reserve
bank is linked to the retail as well as banking services by the banks. The pricing policy of a
bank is considered important for raising the number of customers’ vice- versa the accretion
of deposits. Also the quality of service provided has direct relationship with the fees charged.
Thus while deciding the price mix customer services rank the top position which is a strength
of the ICICI Bank. The banking organizations are required to frame twofold strategies. First,
the strategy is concerned with interest and fee charged and the second strategy is related to
the interest paid on savings. Since both the strategies throw a vice- versa impact, it is
important that banks attempt to establish a correlation between two. It is essential that both
the buyers as well as the sellers have feeling of winning. Because the RBI is the monitoring
authority as per the market structure therefore ICICI is set its prices as per the guidelines and
emphasis on the customer experience which impacts its pricing.
16
3.Finance
a) Develop Transaction analysis of your company based on business activities.
ICICI Bank is a financial service firm which provide and secure your money by
offering different saving plans and mutual funds and providing loan for retail, Agriculture and
Business. ICICI bank’s Business transactions are actually a money transactions.
The Core Business Activities of ICICI Bank are as follows:
 Provide savings products

 Provide credit to support consumption and economic activities
 Wealth creation and management
 Facilitate payments and transactions
 Strategic investments to enhance business capabilities for long-term value creation
The Detail Business activities for financial year 2019-2020 are as follows:
In Retail Banking section we have seen the key driver of growth with the retail loan
portfolio increasing by 15.6% year-on-year at March 31, 2020. The retail loan portfolio as a
proportion of the total loan portfolio increased from 60.1% at March 31, 2019 to 63.2% at
March 31, 2020. Including non-fund based outstanding, the share of retail portfolio was 53.3%
of the total portfolio at March 31, 2020. The Bank continued to see strong growth in its deposit
base, and maintained a robust funding profile during the year. Average savings account
deposits increased by 11% year-on-year and average current account deposits increased by
17.1% year-on-year. Total term deposits grew by 28.6% year-on-year.
The branch network was expanded with 450 new branches added during the year. The
total branch network of the Bank at March 31, 2020 was 5,324. The ATM channel was further
leveraged by offering services like cardless withdrawals from ATMs and creating crosssell
opportunities through the channel. The Bank added 471 insta-banking kiosks during fiscal
2020 taking the total count to 1,638 at March 31, 2020.
The Bank believes that the needs and expectations of rural customers are distinct from
other customer segments. The Bank’s reach in rural areas comprises a network of branches,
ATMs and field staff, and Business Correspondents providing last-mile access in remote areas.
Of the Bank’s network of 5,324 branches, 50% are in rural and semi-urban areas with 650
branches in villages that were previously unbanked. The Bank had over 4,000 customer service
points enabled through the Business Correspondent network at March 31, 2020.
Activity on the Bank’s unique mobile application for rural customers, Mera iMobile,
which allows rural customers to avail over 135 services including non-banking information
and agri-related advisory on crop prices, news and weather, continued to grow. The app is
available in English and 11 vernacular languages, and is used by more than half a million
customers. During fiscal 2020, the app had processed a total of 16.8 million financial and non-
financial transactions.
17
The small and medium enterprises (SME) portfolio comprises exposures to companies
with a turnover of up to $ 2.50 billion. The business banking portfolio comprises small business
customers with an average loan ticket size of $ 10.0-15.0 million.
InstaBIZ is the country’s first comprehensive and only digital banking platform for
self-employed segment and MSMEs. It provides a bouquet of comprehensive solutions in ‘one
single place’. It allows customers to avail over 115 products and services in a digital and secure
manner. The range of services available on InstaBIZ include instant overdraft facility (up to $
1.5 million) and business loans, easy bulk collection and payments of funds through multiple
digital modes and automatic bank reconciliation.
ICICIStack offers nearly 500 services that cover almost all banking requirements of
customers in one place. ICICI Bank launched India’s largest and fully digital API (Application
Programming Interface) Banking portal enabling partners to integrate various payment and
product solutions in a few days. The portal consists of 250 APIs, the maximum number of
virtual APIs put together by any Indian bank. ICICI Bank launched WhatsApp Banking to
enable retail customers to undertake a slew of banking requirements from their home at a time
when they are advised to stay indoors in the wake of the Covid-19 outbreak.
The Bank launched the Cardless Cash Withdrawal facility which allows customers to
withdraw cash from its ATMs without using the debit card. The customers can withdraw cash
from over 15,000 ATMs of the Bank by simply raising a request on the mobile banking app,
iMobile. Launched in association with TranzLease, an automobile leasing and mobility
Solutions Company, SMART EMI is the next-gen auto loan facility that enables customers to
drive a new car home at lower cost and higher convenience.
For the Wholesale Banking Group, the underlying theme followed was 'Ecosystem
Banking for a Corporate' wherein the corporate relationship manager services a corporate and
its entire network of employees, dealers, vendors and all stakeholders with a complete suite of
banking products.
The Bank also developed specific solutions for commodity board ecosystems through
its Digi-Commodity offering. This platform enables digital collection of auction proceeds and
auto reconciliation of outstanding invoices, all the while allowing for deal-wise settlement
across multiple stakeholders. More than 8,000 stakeholders are regularly using this platform.
b) Analysis of the CAGR on sales and Profit and the impact of major expenses
on Profit
The Compound annual growth rate on net profit is 0.68% from FY-2016 to FY-2020.
And for the same period, the Compound annual growth rate on sales is 9.4%. The major
expenditures are Interest Expended, Payments to and provisions for Employees, Depreciation,
Depreciation on Leased Assets, Operating Expense (excluding Employee Cost &
Depreciation). The Total operating Expenses is increased by 75.33% from FY-2016 to FY-
2020. Every Expenditure Head is increased over the period. Interest Expected increased by
31.38%. Payments to and provisions for Employees has increased by 61.40% because from
FY-2016 to FY-2020 ICICI Bank employee base increased. Depreciation increased by 41.98%.
And other operating expenses increased by 79.18%.
18
c) Reading of the Balance sheet of different sectors-

i. Identifying key Financial Performance Indicators. Compare it with industry
representative benchmark and three competitors of the firm
The ICICI Banks key performance Indicators are as follows:-
 The Total Consolidate Total Assets of bank is ₹13.77 trillion.
 The Total Core Operating Profit is ₹268.08 billion it is increased by 17.7% in FY 2020
on Year-on Year Basis.
 Total Interest Income is of ₹ 332.67 billion during FY-2020. The Net Interest Margin is
3.73%.
 Retail portfolio as a portion of total portfolio is 53.3%.
 Total Fee Income of ₹137.11 billion during FY-2020. Total Loans and Advances of
₹6.45 trillion. Growth in Domestic Loan Year-on-Year is 12.9%.
 The Deposits of ₹7.71 trillion. The Net Growth in Term Deposits Year-on-Year is
28.6%.
Year-on-Year Growth Comparison with Competitors and Industry
Banks Total Total Total Total Total

Assets Operating Interest Advances Deposits
Profit Income
Industry 14.37% 21.56% 16.6% 16.18% 21.28%

Representative
SBI Bank 7.34% 22.90% 11.02% 19.69% 22.84%
HDFC Bank 22.27% 22.64% 16.46% 20.06% 24.30%
ICICI Bank 13.9% 17.7% 23.1% 10% 21%
Axis Bank 14% 23% 16% 15% 17%
Kotak Ma. 12.14% (10.93)% 20% 2.63% 15.82%

Bank
By the Comparison with Industry benchmark and competitors ICICI is not crossing the
Industry benchmark in most of the parameter except Total Interest Income in which Y-on-Y
growth is very high then industry benchmark which is 23.1%. In all other factors such as Total
assets, Total advances, Total deposits, and Total Operating Profit ICICI Bank is doing
competitive progress but ICICI Bank is lacking in all factors by Private Sector Topper HDFC
Bank. And the Axis Bank is also giving tough competition to ICICI. But ICICI is performing
much better than Kotak Mahindra Bank. In all ICICI is seen to be the second largest developing
Bank with competitive growth rate.
19
ii. Identify the Solvency position of the company. Compare it with industry
Solvency Position Comparison with Competitors and Industry
Banks Debt Equity Ratio Non-Performing Assets (NPA) Capital Adequacy Ratio
Ratios
2017- 2018- 2019- 2017- 2018- 2019- 2017- 2018- 2019-

2018 2019 2020 2018 2019 2020 2018 2019 2020
Industry
0.07 0.06 0.08 3.06% 1.70% 1.25% 15.57% 15.55% 16.66%
Representative
SBI Bank 0.05 0.06 0.06 5.73% 3.01% 2.23% 12.6% 12.72% 13.13%
HDFC Bank 0.06 0.05 0.13 0.40% 0.39% 0.36% 14.82% 17.11% 18.52%
ICICI Bank 0.04 0.06 0.06 4.77% 2.06% 1.41% 15.84% 15.09% 16.11%
Axis Bank 0.13 0.06 0.08 3.40% 2.06% 1.56% 16.57% 15.84% 17.53%
Kotak Ma. Bank 0.05 0.05 0.06 1.00% 1.00% 0.71% 18.00% 17.00% 18.00%
The Solvency position of ICICI Bank is analyzed on the bases of Debt Equity ratio,
Non-Performing Assets (NPA) Ratios, and Capital Adequacy Ratio. With this ratios I
compared ICICI with the competitors and calculated Industry benchmark.
Debt Equity Ratio: - The debt-to-equity (D/E) ratio is calculated by dividing a company’s total
liabilities by its shareholder equity. The ratio is used to evaluate a company's financial
leverage. It is a measure of the degree to which a company is financing its operations through
debt versus wholly-owned funds. More specifically, it reflects the ability of shareholder equity
to cover all outstanding debts in the event of a business downturn. A high debt/equity ratio is
often associated with high risk; it means that a company has been aggressive in financing its
growth with debt. For ICICI Bank Debt Equity Ratio is lowest as compare to Industry
benchmark and competitors. This represents that ICICI is with Low risk.
Non-Performing Assets (NPA) Ratios: - Reserve Bank of India defines NPA as any advance
or loan that is overdue for more than 90 days. Banks are required to classify nonperforming
assets into one of three categories according to how long the asset has been non-performing:
sub-standard assets, doubtful assets, and loss assets. A sub-standard asset is an asset classified
as an NPA for less than 12 months. It is calculated by dividing Gross NPA minus Specific loan
loss provisions by Net advances. The NPA ratio reflects the quality of the bank’s loan and can
have a major influence on future profitability and survival of the bank. A Higher NPA ratio
represents a lower quality of assets. The NPA ratio of ICICI Bank has decreased over last 3
years which is a great sign for bank but as compare to the competitors it is still high and also
exceeds calculated Industry benchmark. HDFC Bank and Kotak Mahindra Bank has good NPA
Ratio as compare to ICICI Bank. As per last 3 years trend we can predict that it will decrease
for the future.
20
Capital Adequacy Ratio: - The Capital Adequacy Ratio set standards for banks by looking at
a bank’s ability to pay liabilities, and respond to credit risks and operational risks. A bank that
has a good CAR has enough capital to absorb potential losses. CAR is the ratio of capital funds
to the risk weighted assets where capital funds consist of Tier 1 and Tier 2 capitals. CAR is
prescribed by banking regulatory authorities to ensure that banks have a necessary capital to
absorb unexpected losses. Though the minimum level of CAR prescribed by the RBI for Indian
banks is 9% most of the banks have their CAR in excess of 9%. The CAR is further divided
into Tier 1 and Tier 2 capital. Tier 1 capital represents the core capital and is more permanent
than Tier 2 capital. ICICI Bank also performing well in Capital Adequacy Ratio, it is greater
than RBI minimum 9%. For FY-2020 CAR of ICICI Bank as compare to competitors is low.
HDFC Bank has highest CAR of 18.52%.
The Solvency Position of ICICI Bank is strong as per the analysis on the basis of Debt
to equity, Non-Performing Assets (NPA) Ratios, Capital Adequacy Ratio.
21
iii. Identify the Profitability Position of the company. Compare it with industry
Profitability Position Comparison with Competitors and Industry
Banks Net Interest Ratio Net Profit Ratio EPS (Basic) Return on Equity
2017- 2018- 2019- 2017- 2018- 2019- 2017- 2018- 2019- 2017- 2018- 2019-
2018 2019 2020 2018 2019 2020 2018 2019 2020 2018 2019 2020
Industry
Representa 3.37% 3.46% 3.60% 11.26 11.97 13.61 6.50% 7.75% 9.12%
tive
SBI Bank 2.16% 2.40% 2.48% (2.96) 0.35 5.63 (7.67) 0.97 16.23 (3.78) 0.48% 7.74%
%
HDFC 4.3% 4.3% 4.3% 21.79 21.29 22.86 71.73 83.33 49.84 16.88 14.53 15.45
Bank % % %
ICICI Bank 3.23% 3.42% 3.73% 12.4 5.91 11.27 10.56 5.23 12.28 6.6% 3.2% 7.1%
Axis Bank 3.44% 3.43% 3.51% 0.6 8.5 2.59 1.13 18.20 5.99 0.53% 8.09% 2.43%
Kotak Ma. 3.74% 3.73% 3.96% 24.46 23.78 25.71 32.70 37.78 44.73 12.28 12.46 12.89
Bank % % %
The Profitability position of ICICI Bank is analyzed on the bases of Net Interest
Margin/Ratio (NIM), Net Profit Ratio, Basic Earnings per Share (EPS), and Return on Equity
(ROE) Ratio. With this ratios I compared ICICI with the competitors and calculated Industry
benchmark.
Net Interest ratio: - A bank accepts deposits paying a certain rate of interest on such deposits.
It lends the money to borrowers charging a certain rate of interest. NIM is the difference
between interest income and interest expenses of the bank as a percentage of average interest
earning assets. Higher the NIM Higher the Profitability of the bank. For ICICI Bank the NIM
is increasing from last 3 years and for FY-2020 the NIM is greater than industry benchmark.
And as compare to competitors ICICI has less NIM than HDFC but it is competitive with Axis
and Kotak Mahindra bank.
Net Profit Ratio: - The net profit margin percentage is the ratio of after tax profits to net sales.
It reveals the remaining profit after all costs of production, administration, and financing have
been deducted from sales, and income tax recognized. As such, it is one of the best measures
of the overall results of a firm, especially when combined with an evaluation of how well it is
using its working capital. The significance of NPM is come only when we compare it with
other firm. Here if we compare the NPM of ICICI Bank it improved for FY-2020 as compared
to last year. But it is less than HDFC and Kotak Mahindra bank. It indicates that ICICI Bank’s
cost is higher than the competitors. But the cost is raised because of investment of bank in
digital moods. And the ratio will increase in coming years.
22
Basic (EPS): - Earning per share are the net income available per equity share. The basic EPS
is calculated by dividing the net profit or loss for the period available to equity shareholders
by the weighted average number of equity share outstanding during the period. The Ratio helps
in evaluating the prevailing market price of the share. Higher earnings per share translate into
a higher market price because it indicates better performance and prospects of the company.
ICICI Bank’s Basic EPS has increased more than 2 times than previous year and as compare
to the competitors it is also performing well. As we can see the earning per share of HDFC and
Kotak Mahindra is high because of Market Value per share is close to greater than 3 times than
ICICI Bank. Therefore ICICI is also performing well in stock market.
Return on Equity: - The return on equity relates to owners’ equity, and is expressed as a
percentage. ROE is a measure of financial performance calculated by dividing net
income by shareholders' equity. Because shareholders' equity is equal to a company’s assets
minus its debt, ROE is considered the return on net assets. ROE is considered a measure of the
profitability of a corporation in relation to stockholders’ equity. A good rule of thumb is to
target an ROE that is equal to or just above the average for the peer group. The ROE of ICICI
bank is increased from previous year. But as compare to industry benchmark it is following
short. HDFC and Kotak Mahindra has good ROE than ICICI Bank.
If we analyze overall profitability Position of ICICI Bank then it is performing well
over the year but lacking behind the pears such as private sector largest HDFC bank and Kotak
Mahindra Bank. The Axis Bank is below on profitability factor with ICICI Bank. The
profitability Position of the ICICI bank is predicted to increase in current and upcoming year
as they have built a strong digital platform for Banking.
23
iv. Identify the liquidity position of the company. Compare it with industry
Liquidity Position Comparison with Competitors and Industry
Banks Current Ratio Quick Ratio
2017-2018 2018-2019 2019-2020 2017-2018 2018-2019 2019-2020
Industry
Representative 0.078 0.086 0.086 13.978 15.558 15.21
SBI Bank 0.08 0.09 0.09 13.83 18.06 17.05
HDFC Bank 0.04 0.05 0.04 17.48 16.61 16.62
ICICI Bank 0.11 0.13 0.10 3.57 10.57 9.5
Axis Bank 0.10 0.10 0.13 20.2 17.8 17.60
Kotak Ma.
0.06 0.06 0.07 14.81 14.75 15.28
Bank
The short term solvency or liquidity position analysis with the Current and Quick
ratio. If we compare the Current Ratio of ICICI Bank year-on-year then there is slight decrease
for this year. A good current ratio should be in between 1.2 to 2, which means that the business
has 2 times more current assets than liabilities to covers its debts. A current ratio below 1
means that the company doesn't have enough liquid assets to cover its short-term liabilities.
But in banking sector if we see the deposits is coming as a liabilities and loans are coming as
assets and the deposits are larger than advances therefore the current ratio is less than 1. If we
compare ICICI with other competitors then we can see that ICICI is in better position than SBI
and HDFC, only Axis Bank is in slight good position for FY-2020. With the Industry
Representative Benchmark also ICICI is within a limit so by comparison with industry and
competitor the current ratio is good for ICICI Bank.
If we compare Quick Ratio then we can see that for last 3 years the quick ratio is
greater than ideal value 1. The quick ratio is calculated by dividing liquid assets by current
liabilities. The ideal Quick Ratio is 1: 1 and is considered to be appropriate. High Acid Test
Ratio is an accurate indication that the firm has relatively better financial position and
adequacy to meet its current obligation in time. ICICI Bank has less value of Quick Ratio than
Industry Benchmark and competitors but is much greater than Ideal value so there is no
problem for the short term solvency for the Bank.
24
v. Identifying Cost centers and Profit Centers of the company

o Cost Center:-
ICICI Bank is come into financial service sector and there for in operating
expense the biggest cost is incurred of administrative expense and payment to and
provisions for the employees. Except employee payments the other administrative
expenses primarily include rent, taxes and lighting, advertisements, sales promotion,
repairs and maintenance, direct marketing expenses and other expenditure. Other
administrative expenses increased by 18.0% from ₹ 105.04 billion in fiscal 2019 to ₹
123.97 billion in fiscal 2020. The increase in other administrative expenses was primarily
due to an increase in retail business volumes.
The cost of Payments to and provisions for employees. Employee expenses
increased by 21.5% from ₹ 68.08 billion in fiscal 2019 to ₹ 82.71 billion in fiscal 2020
primarily due to an increase in employee base, annual increments and promotions,
provision for retirement benefit obligations due to a decrease in the discount rate linked to
yield on government securities and an increase in dearness allowances. The average staff
strength increased from 84,523 for fiscal 2019 to 97,682 for fiscal 2020 (number of
employees at March 31, 2019: 86,763 and at March 31, 2020: 99,319), primarily in retail
and rural business. The employee base includes sales executives, employees on fixed term
contracts and interns.
o Profit Center:-
The major profit or we can say the income is coming from the interest accrued
on the Advances (Loan). In the total income for FY-2020 63.07% income is coming from
interest on advances or bills. Interest on advances increased from ₹ 479,426,244 thousand
for FY-2019 to ₹ 575,511,126 thousand for FY-2020 which is 16.69% increase. Followed
by this Income on Investments and then commission, exchange and brokerage is
contributing for the profit.
The Retail portfolio as a proportion of total portfolio including non‑fund based
outstanding accounts for 53.3%. In retail loan there is an increase of 15.6% y-on-y. Total
deposits in retain increased by 18.1%.
The Portfolio wise retail portfolio and for total income wise it is Interest on
loan or advances. This is the profit center of the ICICI Bank.
25
vi. Identifying the breakeven point of the company / Product

The Break-even point is that point of sales or amount of sales or revenues must
generate in order to equal to its expenses. In another words, it is the point at which the company
neither earn a profit nor suffers a loss. It means equal to revenue to cost of that goods. A break-
even analysis is a financial tool which helps a company to determine the stage at which the
company, or a new service or a product, will be profitable. In other words, it is a financial
calculation for determining the number of products or services a company should sell or
provide to cover its costs particularly fixed costs. Break-even is a situation where an
organization is neither making money nor losing money, but all the costs have been covered.
Break-even analysis is useful in studying the relation between the variable cost, fixed cost and
revenue. Generally, a company with low fixed costs will have a low break-even point of sale.
In Financial service sector the fixed cost is coming from Rents for the office, digital product R
& D. and the variable cost is coming from the processing cost of loan and account opening
procedure. So as a fixed cost I am taking operating Expense and Interest expense and employee
benefit expense is variable cost as it is dynamic. Because ICICI is a service company I am
finding Break Even Sales for FY-2020.
Fixed Cost: - Fixed Cost of ICICI Bank includes Payments to and provisions for employees,
Rent, taxes and lighting, Depreciation on Bank's property, and other expenses. The Total Fixed
Cost of ICICI Bank is ₹ 200,727,603 thousands for FY-2020.
Variable Cost: - Variable Cost of ICICI Bank includes Interest Expended, Advertisement and
publicity, Printing and stationery, Postages, courier, telephones. The Total Variable Cost of
ICICI Bank is ₹ 430,729,023 thousands for FY-2020.
Total Sales / Total Income: - The Total Interest income of ICICI for FY-2020 is ₹ 747,983,166
thousands.
The Break Even Sales for a year is calculated by dividing multiplication of fixed cost
and total income by the subtraction of total interest income and variable cost. By this
calculation we have got the break-even point is ₹ 473,251,087 thousands for the Financial Year
2020.
26
4.Marketing
a) Identification of product portfolio.
ICICI Bank is working in 3 business areas 1) Retail, Rural and SME Banking, 2)
Wholesale banking, 3) Treasury. The product portfolio in ICICI Bank is explained as follows.
The products are classified in different product lines offered by ICICI Bank.
Product Line of ICICI Bank
Sr. Product Products

No. Line
1. Accounts & 1) Saving account 2) 3-in-1 account 3) Salary Account 4) Pay Later
Savings By ICICI Bank 5) Pension Account 6) Defense salary Account 7)
Other Accounts
2. Insurance 1) Life Insurance 2) General Insurance 3) PM Social Security

Scheme 4) Heart & Cancer Insurance
3. Tax 1) Online Tax Payment 2) Goods and Services Tax 3) Tax E-filling
4) Tax Solutions
4. Loans 1) Personal Loans 2) Home Loans 3) Car Loans 4) Two-wheeler

Loan 5) Gold Loan 6) Cardless EMI 7) Loan Against Property 8)
Loan Against Security 9) Consumer Finance 10) Education Loan
11) Commercial Business Loan 12) Pradhan Mantri Mudra Yojana
5. Cards 1) Credit Cards 2) PL on Credit Card 3) Debit Card 4) Travel Card

5) Prepaid Card 6) Unifare Metro Card 7) Merchant Services
6. Investment 1) Fixed Deposit 2) National Pension System 3) Bonds 4) Senior

Citizen Saving Scheme 5) Public Provident Fund 6) Sukanya
Samriddhi Yojana 7) Mutual Fund 8) Gold Monetization Scheme 9)
IPO through ASBA 10) FD Health
7. Agri & 1) Instant Gold Loan 2) Agriculture Term Loan 3) Tractor Loan 4)
Rural Micro Banking 5) Farmer Finance 6) Agri Corporate
8. Internet & 1) iMobile 2) Pockets by ICICI Bank 3) SMS Banking 4)

Mobile ICICIStack 5) API Banking 6) WhatsApp Banking 7) InstaBIZ 8)
Banking iBox 9) iXpress Connect 10) Smart EMI
9. Corporate 1) API Solutions 2) Collections 3) Current Account 4) Payments 5)

Specialized Services 6) Statutory Solutions
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All these and various other financial and banking services are provided by ICICI bank
in its product portfolio.
b) The year in which these products were launched.
Year wise product launches
Year of Products
Launch
1995  The Bank was incorporated on 5th January at Baroda. ICICI Bank
was promoted by ICICI and erstwhile SCICI Ltd. and received the
Certificate for Commencement of Business on 24th February. It does
banking business of all kinds.
1997  Electronic funds transfer facility.
1998  Internet banking in India.
2000  Mobile banking

 Slew of new schemes in the personal segment ranging from launch
of co-branded credit cards to providing loans against share within the
next three months.
 Business Multiplier Account.
 Debit card under the brand name ICICIN-cash.
2001  ICICI Bank and BPL Mobile have tied-up to launch a co-branded
credit card.
 Interactive touch screen kiosk 'Sparsh' at its (ATM) centres and
branches allowing free access to its online services.
2002  ECheques facility for its internet banking.

 ICICIdirect.com, the brokerage arm, launches online trading in
derivatives.
2003  Micro-finance programs.

 NRI advisory service.
2004  Easy Deposit Card, which charges an interest of 0.99 per cent per
month.
 New mobile phone banking service.
2005  Online Public Provident Fund (PPF) scheme on July 01, 2005
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 Alliance with Fortis to serve NRIs on July 22, 2005.
2007  Loan-on-the-spot (LOTS) product for car loans.
2011  Cash withdrawal at POS terminals.

 EMV Standard Cards.
 The first dual Platinum Credit Card.
2012  ICICI Bank rolls out 25 electronic branches and launches many next
generation banking solutions.
 First Electronic Toll Collection project on NH-1.
2014  Pro & Premia Savings Accounts for NRIs.

 Redesigned website to enhance customer experience
 iMobile application for Windows
 Student Travel Card -ICICI Bank launches EMI on debit cards.
 A ‘Smart Star A’ account, a minor operated savings account.
 Pockets by ICICI Bank for Non Resident Indian (NRI) customers
2015  Pockets, India's first digital bank on a mobile phone

 Automated digital locker facility
 Online rail ticket booking on its website
2016  iWork@home for women employees

 Eazypay mobile app for merchants.
2017  Mera iMobile, India’s first mobile banking application for rural
customers
 Money2India website and mobile application to enhance customer
experience
 Cashback home loans
2018  InstaOD, the country’s first online and instant overdraft facility for
MSMEs
 Swiggy partners with ICICI Bank to launch two digital solutions for
its delivery partners
 Next generation features on ‘Eazypay’
 Lending to MSMEs based on their GST returns
 Co-branded credit card with Amazon
 PayLater, an instant digital credit facility for small payments
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 Advantage Woman Aura Savings Account for working women
2019  Premium savings account, The ONE

 Super-premium credit card Emeralde with host of exclusive features;
annual benefits estimated to be around ₹ 3 lakh
 InstaBIZ, India’s first most comprehensive digital banking platform
for MSMEs
 FD Health; India’s first fixed deposit with critical illness insurance
2020  API Banking portal with nearly 250 APIs

 Cardless Cash Withdrawal through ATM using ‘imobile’
 Ibox, a unique self-service delivery facility for customers
 ICICI Appathon – API Banking
 ICICIStake, India’s most comprehensive digital banking platform
 Banking services on WhatsApp
 Voice banking services on Amazon Alexa and Google Assistant
 Insta FlexiCash
 Video KYC for Savings Account, Personal Loan and Credit Card
 Instant loan against MF units
 Use of satellite data to power credit assessment of farmers
 Home Utsav, a virtual property exhibition
 IStartup2.0, the country’s most comprehensive program for startups
 Mine, a banking stack for millennial customers
 Cardless EMI, a new digital mode of payment
 iMobile Pay; India’s first app that offers payments and banking
services for all
c) Which product/ product lines are more profitable?

ICICI Bank’s Total Operations are divided in 3 key business area which are a) Retail,
Rural and SME Banking b) Wholesale Banking c) Treasury. From which the most profitable
sector is retail, rural and SME Banking sector. Which accounts for major share of income from
total income.
If we analyze services wise the interest income from Advances or Loans provided and
are most profitable service. In total retail loan portfolio increasing by 15.6% year-on-year at
March 31, 2020. The retail loan portfolio as a proportion of the total loan portfolio increased
from 60.1% at March 31, 2019 to 63.2% at March 31, 2020. Including non-fund based
outstanding.
The share of retail portfolio was 53.3% of the total portfolio at March 31, 2020. The
Bank continued to see strong growth in its deposit base, and maintained a robust funding profile
during the year. Average savings account deposits increased by 11% year-on- year and average
current account deposits increased by 17.1% year-on-year. Total term deposits grew by 28.6%
year-on-year.
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d) Identify 5 competitors of your product/company.

5 competitors of ICICI bank are as follows
Competitors of ICICI bank
Sr. Bank Foundation Year Market No. of ATM
No Capitalization branch
1. HDFC August 1994, Mumbai ₹ 777,119.60 Cr. 5430+ 14901
2. Kotak Mahindra February 2003, Mumbai ₹ 385,954.49 Cr. 1600+ 2519
3. ICICI January 1994, Vadodara ₹ 356,909.37 Cr. 5324+ 15589
4. Axis 1993, Ahmedabad ₹ 186,562.96 Cr. 4500+ 17477
5. Indusland 1994, Mumbai ₹ 68,468.73 Cr. 2000+ 2760
e) Identify the region in which the product /product line is not doing well.
ICICI Bank’s The Bank reports its operations under the following geographical
segments.
 Domestic operations comprise branches in India.
 Foreign operations comprise branches outside India and offshore banking units in
India.
If we compare the revenue from domestic operations to the revenue from foreign
operations then we find that domestic operations revenue is 26 times of foreign operations
revenue. Foreign business assets are also very less as compare to domestic market. Currently,
the Bank has subsidiaries in Canada and the United Kingdom; branches in Bahrain, China,
Dubai International Finance Centre, Hong Kong, Singapore, South Africa, Sri Lanka, and the
United States; and representative offices in Bangladesh, Indonesia, Malaysia and the United
Arab Emirates.
ICICI bank is in developing stage for foreign market therefore as compare to domestic
business foreign business is not doing well.
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f) How does a company identify the segments that make up a market?

ICICI offers multiple financial service and for that they design a product and services
for different segments of people. They use multiple segmentation for this reason such as
Demographic segmentation, Behavioral segmentation, psychographic segmentation and
geographic segmentation. Segmentation is done on the basis of product benefit. We will see
Major segmentation of the ICICI bank.
ICICI Banks segment customers into two general categories before breaking down
those markets into product benefits: consumers and businesses. ICICI Bank focus on both
consumer products and business. They offer products in similar areas for businesses because
of their normally larger size and scope regarding money management.
1) Standard Banking
ICICI Bank segments the Standard Banking on Behavioral segmentation of Benefit
sought and Demographic segmentation of Life stage, occupation, social class. One of the
largest common benefit segments offered by a bank is for its standard checking and savings
banking products. ICICI banks promote these basic products on their website home pages.
Historically, standard checking and standard savings accounts were sold separately.
However, ICICI Bank have attempted to bolster relationships with their standard banking
customers by developing packages whereby customers get added value by combining a
checking and savings account and often better interest rates with automatic checking-to-
savings transfers. Banks often target consumers in this segment through traditional media
like radio, television, newspapers and magazines.
2) High-end Savings
High-end savings is typically a step up from the standard checking, savings customer
and providing lockers in bank. It is also a demographic segmentation on Social class, Income.
High-end savings products may include higher dollar value money market and savings
accounts, certificates of deposits and other long-term savings products intended to derive
great monetary value from customers. These products are sometimes marketed through
traditional means, but they are also often marketed to existing standard customers who may
have interest in moving up in savings value at some point.
3) Loans
In case of ICICI Bank loans are a huge segment of banking operations. Home loans
and auto loans make up a significant portion of bank lending, but equity loans, student loans
and personal loans are also common. This is also a demographic segmentation on Income,
Occupation, education and behavioral segmentation of benefit sought. Loan products are
typically advertised separately from the bank's other products. Banks may promote home
loans through local real estate publications or resources. Auto loan offers make sense in car-
related media. Banks also cross promote by marketing loan products to existing banking
customers and even offering better rates with bundled products.
4) Investment
A fast-growing segment in traditional banks is in the investment product sector.
Traditionally, individual investors have had to set up separate investment accounts with niche
investment banks. ICICI bank also provides different services for Investment. It is based on
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psychographic and demographic segmentation. With the evolution of the Internet in the early
21st century and many more people managing their own stock, bond and other investments,
ICICI Bank have expanded significantly into this sector. Again, banks can market investment
solutions to existing customers with bundled benefits. They advertise through local media,
but they may deliver more targeted messages through investment-related publications.
5) Agriculture and Rural
ICICI Banks Agriculture and rural banking is divided on the basis of geographic
segmentation and demographic segmentation as the products vary on the basis of agri
production of the particular area, financial wealth of the farmers, climatic conditions. The
products and schemes are different in different geographic areas. For example in Kerala and
Assam bank provide loans for tea farms. The target the segment by local advertising mediums.
6) SME
ICICI Bank offers its SME and business banking customers a wide spectrum of
solutions addressing their evolving business needs such as customized offerings, faster
turnaround time, and transaction convenience, timely access to capital and cross-border trade
and foreign exchange products. They segment this sector on their Income or we can say
turnover. Past records of the firm can divide them in different categories related to risk.
7) Wholesale Banking
ICICI Bank offer financial solutions to large and medium sized companies and their
business and channel partners, and to financial and government/public sector entities. They
prefer geographic and Demographic segmentation for whole sale banking sector. The product
offerings include deposits, long-term finance, working capital, trade, cash management,
transaction banking and treasury management. In addition to their network in India, They
leverage their international presence to meet the cross border requirements of their clients.
This is how ICICI Bank Identify its Target Segment which constitute total market.
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g) How are companies and marketers responding to the new challenges posed
by COVID?
The Covid-19 pandemic has impacted several countries, including India. This resulted
in countries announcing lockdowns and quarantine measures that sharply stalled economic
activity. The Reserve Bank of India (RBI) has announced several measures to ease stress in
the financial system, including enhancing system liquidity, moratorium on loan repayments
for borrowers, asset classification standstill benefit to overdue accounts where a moratorium
has been granted and relaxation in liquidity coverage requirement, among others.
ICICI Bank’s Innovative and Digital products helped the bank in business continuity.
ICICI Bank’s technology emphasis have saved them from major damage to their business.
With the better digital services ICICI Bank Launched several new facilities to their customers
in this financial year. The following list will explain about the services and products ICICI
Bank launched for pandemic.
1) ICICI Appathon – API Banking: -
ICICI Bank announces the launch of an API Banking portal, consisting the maximum
number of virtual APIs (application programming interfaces) put together by any Indian bank.
It enables partner companies to co- create innovative customer solutions in a frictionless
manner and in a fraction of time usually taken for such integration, thereby significantly
increasing their productivity. APIs are a set of instructions, which enable third party
applications to communicate with the Bank’s various technology applications and collaborate
to bring in new customer propositions.
2) ibox: -
ICICI Bank announced the launch of a unique self-service delivery facility, enabling
its customers to collect their deliverables such as debit card, credit card, cheque book and
returned-cheques, from a branch close to their home or office, in a hassle free manner, anytime
any day. The Bank has introduced the facility, called ‘iBox’, at over 50 branches in 17 cities
in the country. This facility is especially useful for customers who are not available at home to
receive their package during working hours. Because of this facility the customers fell
covenant to follow social distancing.
3) ICICIStack: -
ICICI Bank on March 17, 2020 announced the launch of ‘ICICIStack’, a set of the
country’s most comprehensive digital banking services and APIs (Application Program
Interface) to ensure uninterrupted banking experience to customers of retail and business
including retailers, merchants, fintechs, large e-commerce firms, corporates at a time when
they are advised to stay indoors in the wake of the coronavirus outbreak. Many of the services
are first-in-the industry and are available instantly on the Bank’s mobile phone or internet
banking platform. ‘ICICIStack’ offers nearly 500 services that covers almost all banking
requirements of customers, in one place.
4) ICICI Bank launches banking services on WhatsApp: -
ICICI Bank announced the launch of banking services on WhatsApp to enable its retail
customers to undertake a slew of banking requirements from their home at a time when they
are advised to stay indoors in the wake of the nationwide lockdown to fight against corona
virus.
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5) Voice banking services on Amazon Alexa and Google Assistant:-

ICICI Bank announced that it has integrated its AI powered multi-channel chatbot,
‘iPal’, with the world’s two most popular voice assistant apps--Amazon Alexa and Google
Assistant, to enable its retail banking customers to undertake an array of banking services with
just a simple voice command. This novel facility offers customers yet another way to connect
with their Bank from home at a time when they are advised to stay indoors in the wake of the
nationwide lockdown.
6) Video KYC’ for Savings Account, Personal Loan and Credit Card: -
ICICI Bank in June 2020 announced the launch of a facility that empowers retail
customers to complete the ‘Know Your Customer’ (KYC) process, which is required to open
a new relationship with the Bank, through video interaction. The Bank has, to begin with, made
the facility available for new customers keen to open a savings account, including a salary
account, or avail a personal loan with the Bank. The facility is also available for customers
applying for ‘Amazon Pay ICICI Bank Credit Card’, a widely popular credit card variant. The
Bank will shortly extend the ‘Video KYC’ facility to other variants of credit cards, home loans
and other retail products.
h) Is your company positioning as a market leader, challenger, follower, or
niche?
ICICI Bank is one of the big financial firm in private banking sector. ICICI is come in
the challenger position as they have large network of branches and ATM. but as compare to
HDFC Bank which is leader firm in Private banking the market capitalization is low for ICICI
Bank. We have all the information regarding market capitalization and business distribution
from there we can see that the difference between the market capitalization of competitors and
business distribution.
ICICI Bank emphasizing on their digital platform which made them stronger on
customer convenience. In the pandemic situation the launches in this financial year has
strategic importance and it will be challenging for the competitors which have large market
capitalization as compared to ICICI Bank.
i) How can companies both attract and retain customers.
ICICI Bank has a very strong digital platform for operations which provides
convenience for the customer. But the interest rate they offer for deposits are low as compare
to competitors and the interest they charge on loan are competitive with other banks.
ICICI Bank should strengthen and market their strength and minimize their weakness.
ICICI Bank should market their self as an advance digital and secured technology providers
which will attract the new age customer who are leaned towards the convenience. This strategy
will attract new customer. And If ICICI Bank slightly increased their interest rate on deposits
then the current customers will be extremely happy as they are getting best of services along
with similar returns on their deposits as compare to market.
ICICI should launch a different scheme related to interest rates for loyal customers who
has long time relation with bank. ICICI Bank have a premium bank image but If we see
majority of revenue is coming from retail business which constitutes of all income level
customers. If ICICI Bank focused more on the retail business and provide services at affordable
rate then the market share of ICICI Bank will increase with increase in new customers.
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j) Discuss the distribution channel of your company.

ICICI Bank’s branch network was expanded with 450 new branches added during the
year. The total branch network of the Bank at March 31, 2020 was 5,324. The ATM channel
was further leveraged by offering services like cardless withdrawals from ATMs and creating
crosssell opportunities through the channel. The Bank added 471 insta-banking kiosks during
fiscal 2020 taking the total count to 1,638 at March 31, 2020.
ICICI Bank also have Direct Selling Agent (DSA) and Direct Selling Team (DST).
ICICI bank take efforts on the part of the bank to reach the customer rather than waiting for
the customer. ICICI Bank uses internet, mobile, ATM’s and other technological device to reach
and serve the customers. As like other bank ICICI Bank also follows following Distribution
Channels.
ICICI Bank Distribution Channels
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5.Organizational Behavior
a) Write the mission, vision of the company, and draw the company
organizational structure.
 Vision
To be the trusted financial services provider of choice for our customers, thereby
creating sustainable value for our stakeholders
 Mission
To grow our risk-calibrated core operating profit by:
 Delivering products and services that create value for customers

 Bringing together all our capabilities to seamlessly meet customer needs
 Conducting our business within well-defined risk tolerance levels
 Organizational Structure
Designing agile organization structures to capture market opportunities is the Bank’s
focus. This is further enhanced by their culture and people strategy that focusses on
innovation and technology to re-imagine and redefine people processes and build
capabilities. Since fiscal 2019, the Bank has undertaken various initiatives to strengthen its
culture. Workspaces have been redesigned to reflect fading hierarchies and create an open
office culture.
The Corporate Hierarchy of ICICI Bank may differ from its different organizational
structures within the bank, however on a broader line prospective are mentioned below.
The organizational structure of ICICI Bank divided in 5 parts as: -
1. Retail Banking
2. Wholesale Banking
3. Project Finance & Special Asset Management
4. International Business
5. Corporate Center
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 Hierarchy Levels
o TOP Level consists of BOD, Chairman, CEO, CFO, MD
o Middle Level Zonal Heads, Senior General Manager
o Lower Level Branch Manager
1. Apex Level - Branch Manager, Bank Manager
2. Functional Level - Technical Experts, Data Analyst
3. Operational Level - Cashier, Data Entry Operator
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b) Discuss the workforce diversity of your company.

ICICI Bank is creating a future ready workforce that focusses on customer centricity in
its approach and is skilled with a 360 degree business orientation. ICICI Bank’s people
practices have evolved over the years to cater to the rapidly changing business environment.
Synergy that binds all employees with a single DNA, a culture that encourages innovation and
execution, and an ethos that instils in employees the belief to serve as ONE TEAM – with
humility, responsibility and sensitivity – are core to their approach. Several innovations made
by ICICI Bank in the space of technology led hiring, capability building and employee
engagement have enabled scale up of the workforce to meet business needs.
At ICICI Bank, artificial intelligence enabled systems, portals and applications have
been built across the employee life cycle to enhance employee engagement and experience.
The Bank expects all its employees to act in accordance with the highest professional and
ethical standards upholding the principles of integrity and compliance at all times. The Bank’s
Group Code of Business Conduct and Ethics lays down the values and principles and the
standards of professional conduct and desired behavior from its employees.
ICICI Bank has always encouraged diversity in its workforce and this is deeply rooted
in its culture and DNA. ICICI’s philosophy of meritocracy and equal opportunity in its people
decisions led to a large number of leadership positions being held by women over the last two
decades. At March 31, 2020, women constituted 32% of the Bank's workforce. Conscious of
the life stage needs and safety of women employees, a range of benefits and policies has been
curated. The Bank formulated a liberal leave policy for the women employees much ahead of
its time by providing fertility leave to employees seeking to undergo treatment. It also provides
child care leave and adoption leave. The Bank is also associated with various day care facilities
across the country. 'iWork@home' is an initiative that enables women employees to work from
home, if required.
c) Prepare Employee attrition dashboard.
Attrition is a common concern with all companies and ICICI bank like others, also
toyed with the idea of trying to predict attrition by making investments. However, they were
unable to crack it initially. The bank put in some 40 variables to figure out attrition and after 5
months of efforts, it figured while it could not predict who will leave, but it could predict which
city will lose how many people in what profile.
So now the bank knows that say in Chennai in the next month, 20 people are likely to
quit. Thus the bank’s supply line has been staffed to take care of this. The algorithm mostly
works on profiles which have a large people base. While the bank has been able to refine the
algorithm at the city level, it still is working towards refining it to an individual level.
As per the historic data ICICI Banks attrition rate is nearly 20% in total of all segments.
It is high as compare to industry. They calculate staff attrition as per the projected unit credit
method.
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Attrition
20%
80%
Attrition Retention
d) Discuss the Wellbeing program adopted by the organization for dealing with
the Stress of employees?
ICICI Bank take various activities for the mental and physical health of its employees
so they can deal with the stress. One of the recent activity is #Be-Fit Session – is an umbrella
program that continues to drive an agenda of fitness across the bank and offers multiple health-
related options for employees including wearable fitness devices at discounted rates and
participation in activities such as Yoga and Zumba at work.
In view of the Covid-19 pandemic, ICICI Bank took several steps to ensure continuity
in operations and minimal disruption to services for customers along with the safety of its
employees. Most of the Bank’s branches remained operational during the period with reduced
staff strength. To ensure safety of the front-line staff working at branches, the teams were
rostered across branches in a manner to minimize risk and exposure. Residential pin code
details of approximately 70,000 employees from across the Bank were analyzed to map
employees to branches thus minimizing local travel and exposure.
With a focus on ensuring health and safety of employees, ICICI Bank launched a
Covid-19 Helpline where employees could reach out for consultation with doctors pertaining
to Covid-19 concerns and symptoms. ICICI Bank also partnered with a testing lab approved
by the Government as a testing center, to provide for home testing for employees in Mumbai
and Pune. The Bank also encouraged employees to download and use the government
promoted 'Aarogya Setu' app which is a pan-India single source for contact tracking an
individual’s proximity to a Covid-19 infected person and also gives information on best
practices and medical advice.
All this initiative taken by the bank to reduce stress from their employee and provide
best environment for work. ICICI Bank won Business Today’s 'Best Company to Work For'
Award in the Banking, Financial Services and Insurance sector for the fourth year in a row in
fiscal 2020.
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e) What are the policies and techniques does the organization adopts to
motivate their employees?
ICICI Bank Provides different facilities to its employees by that they fell convenience
to do their work for that bank make various schemes which motivates its employees. The Bank
has a Travel Accompaniment Policy which allows women with young children to be
accompanied by their child and a caregiver during official travel with the cost borne by the
Bank. 'iTravelSafe', an app developed by the Bank, provides easy access to register an SOS
distress signal. To support employees during emergencies, the Bank has set up a Quick
Response Team (QRT) to respond to calls of distress by employees. Each QRT is a GPS-
enabled vehicle and carries medical equipment and a team of trained professionals to deal with
medical and safety emergencies.
In the Pandemic time to convey the appreciation on behalf of the Bank and maintain
the morale of employees who were discharging duties in a high risk environment, the senior
management of the Bank undertook e-visits to over 4,000 branches via digital mode and
interacted with the staff present there. A sentiment of care, gratitude and applause was shared
with teams. Numerous communications on guidelines on work from home and other
communications with respect to general and specific advisories on health and safety, IT
security concerns specific to a work from home scenario, and benefits and tie-ups initiated on
account of the Covid-19 crisis were shared on an ongoing basis to keep employees updated
with key developments.
ICICI Bank takes good care of its employees and they do appreciate the excellent and
brave work and provide an additional support by making a convenient workplace to motivate
their workforce for remarkable job. ICICI Bank won Business Today’s 'Best Company to
Work For' Award in the Banking, Financial Services and Insurance sector for the fourth year
in a row in fiscal 2020. The Bank’s overall ranking was fourth across all sectors. The award
was announced on the basis of a nationwide survey which Business Today magazine conducted
in collaboration with People Strong, an HR solutions company. The parameters covered work
environment, culture of inclusion, culture of innovation, communication, challenging work
opportunities, work life balance & flexibility, job security & company stability, leadership’s
commitment to business, career growth path, learning opportunities, fairness and objectivity.
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6.Social Media
a) How many followers, does ICICI Bank have on Twitter?
b) How many followers, does your company have on Instagram?
c) What is the theme of posts on each of the social media?

Social Media Theme
Social Media Theme
They use one image, links and small

content for the twitter post. They announce
the new launches on twitter.
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They use Video, Image, Video Stories,

Festival wish posts and videos of new
launches, Infographics and TV
commercials.
They use Image, Video of new launches,

Infographics, Links, Business News,
Branch Openings, and Contests.
They use one image, Videos, links content

for the post. They announce the new
launches and usability videos for services
they offer.
d) How do you rate the current website on your company?

The effects of design parameters of rating scales on the perceived quality of interaction
with web sites were investigated, using four scales Disorientation, Perceived ease of use,
Perceived usefulness and Flow. Overall, the scales exhibited good psychometric properties.
1. Strategy
Good website design is backed by strategy. Even the most attractive, user-
friendly website isn’t successful when it isn’t achieving what your company needs.
On ICICI Banks website new visitors get a clear sense of who is ICICI Bank and what
ICICI Bank offer when they arrive at site. Website Design direct visitors to do what
they want to do. Strategy is informing your product and direct them to apply for
services. By this I can say that by strategy perspective ICICI Bank website is very
good.
2. Usability
Usability is all about the practical considerations of what goes into good website
design, such as speed, user-friendliness, security, technical details like sitemaps, etc.
A lot of these details aren’t visually apparent; you don’t see a website’s security when
you type in its URL. Nonetheless, usability is a make-or-break issue for websites that
work. If a visitor can’t find what he or she is looking for because of poor navigation,
he or she will usually leave. If pages take too long to load, both search engines and
visitors will notice. So on Usability factor also ICICI Bank Website is good. It satisfies
all requirements.
3. Style
Beauty may be relative, but that doesn’t mean there aren’t clear aesthetic
principles to guide your website design. The best designs will align with their brands,
create positive impressions for visitors, be clean, and complement the content they’re
communicating. ICICI Banks website’s style align with its brand in terms of colors,
feel, graphics. The style consistent throughout the website. The style suit their target
43
audience. The website give Orderly, Sparse, formal feel. Effective use of photos or
decorative touches which transfers message in more clear way.
4. Content
The two main considerations regarding content are readability and usefulness.
Readability is important because if your visitors can’t make out your content, whether
that’s because it’s too small or in a pale color or in an unreadable font, there’s no way
for your message to get across. Usefulness is just as important, however, because if
your content doesn’t matter to your reader, you lose him or her anyway. ICICI Bank’s
Website is also fulfilling all criteria for good content.
5. Search Optimization
There are many ways that the design of your website impacts search
optimization—as Search Engine Journal points out, “Search engine optimization and
social networking all start with strong website design.” Does your website have a lot
of graphics, for example? If so, search engines can’t see them. You need to add ALT
tags to your image descriptions in order for search engines to know what you’re
showing. ICICI Bank’s HTML is efficient and therefore the search ranking is high.
The Overall ranking on the basis of this 5 factors for website ranking, The ICICI Bank’s
website is really good and If have to score it then I will give 4.6/5 for the website.
e) Identify the digital platform on which your company’s presence is the
strongest. List down reasons as to why the company is choosing one platform
as compared to others.
The presence of the company is strongest on Facebook on which total 5,409,479 people
follow ICICI Bank’s page. On LinkedIn there are 1,684,888 followers, and on Twitter total
601,408 people follow ICICI’s Page. Lowest followers on Instagram which is 202,162
followers. From this numbers it is clear that ICICI Bank’s Presence on Facebook is strongest.
Then it is focused on LinkedIn. But if we see the post frequency then ICICI Bank Post almost
daily on twitter then the frequency is higher in Facebook and then LinkedIn.
Reasons for the more frequent post’s on twitter and Facebook then LinkedIn and
Instagram:-
 Twitter is used by majorly professional persons and for ICICI Bank their business is
targeted to retail, wholesale and treasury so it is ideal platform to promote.
 Then Facebook is most common social media platform which is used by general
people.
 To creating awareness Facebook has maximum reach.
 For the service sector, Twitter and Facebook is ideal platform because Instagram is
more attractive for fashion, automobile or manufacturing sector.
44
f) On the basis of digital posts of your company, identify any future innovation
on that the company may likely to get in.
ICICI Banks Social Media Platform are promoting the launch of Cardless EMI - a fully
digital mode of payment that allows pre-approved customers to buy gadgets and home
appliances using only their mobile phone and PAN.
They can convert the high-value transactions into easy, no-cost monthly instalments by
simply putting their registered mobile number, PAN and OTP (received on mobile number) on
the PoS machine at the retail outlets. It enables one to make purchases in easy instalments
through a convenient OTP based approval process.
According to the press release, the ICICI Bank is the first in the industry to introduce a
fully digital, cardless EMI facility at retail stores. The Bank has tied up with Pine Labs, a
leading merchant commerce platform, to offer this facility across pan-India outlets of leading
retailers namely Croma, Reliance Digital, My Jio Stores and Sangeetha Mobiles. At these
stores, customers can avail the ‘Cardless EMI’ facility to purchase electronics from leading
brands like Carrier, Daikin, Dell, Godrej, Haier, HP, Lenovo, Microsoft, Motorola, Nokia,
Oppo, Panasonic, Toshiba, Vivo, Whirlpool and MI. The Bank will add many more brands as
well as retailers under this facility in near future.
g) What are the changes in the digital platforms of your company during the
last five years? If yes identify the reasons which led to this change.
Yes, there has been a significant change is happened on ICICI Banks digital platforms.
Overall banking sector has started digital transformation for their financial services and ICICI
Bank is the leader in delivering digital services. ICICI Bank has launched many digital apps
and services for the customers and for the promotion of this digital platform’s promotion Bank
started heavy promotions on social media earlier they are more focused on Facebook but after
the raising importance of twitter and LinkedIn they started to promote on all platforms.
Instagram is focused on customer engagement. Majorly they started relaying of digital
platforms then newspaper and magazines. This Major changes occurred in last 5 years in the
digital platforms of ICICI bank.
45

Icici Bank CBR

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A

SUMMER TRAINING REPORT ON

Under the guidance of

Prof. Shagun Arora (Economics)

Specialization: Marketing and Operations & Supply Chain

New Delhi Institute of Management

Harshad Sutar (20201)

In Partial Fulfillment for the award of the degree

Specialization: Marketing and Operations & Supply Chain

New Delhi Institute of Management

b) The year in which these products were launched ................................................................... 28

Sr. Banks Established

1. Axis Bank (earlier UTI Bank) 1993(as UTI

6. Induslnd Bank 1994

7. Kotak Mahindra Bank 2003

8. Yes Bank 2005

9. Balaji Corporation Bank Limited 2010

10. HDFC bank 1994

11. Bandhan bank 2015

12 IDFC Bank 2015

Scope & Impact of the Industry on Indian Economy

b) ICICI Bank Overview

 Delivering products and services that create value for customers

KEY BUSINESS AREAS

Hierarchy / Organizational Structure

The organizational structure of ICICI Bank

Products & Services

India’s Top 5 Banks by Market Share (Deposits & Credits)

Top 5 Bank Deposits Credits

State Bank of India 23.9% 22.5%

HDFC Bank 8.5% 9.6%

ICICI Bank 5.7% 6.3%

Axis Bank 4.7% 5.5%

Kotak Mahindra 1.9% 2.1%

Total Market Share of Top 5 44.7% 46%

g) Discuss the cost-effective strategy followed by your company.

 Provide savings products

c) Reading of the Balance sheet of different sectors-

Year-on-Year Growth Comparison with Competitors and Industry

Banks Total Total Total Total Total

Industry 14.37% 21.56% 16.6% 16.18% 21.28%

SBI Bank 7.34% 22.90% 11.02% 19.69% 22.84%

HDFC Bank 22.27% 22.64% 16.46% 20.06% 24.30%

ICICI Bank 13.9% 17.7% 23.1% 10% 21%

Axis Bank 14% 23% 16% 15% 17%

Kotak Ma. 12.14% (10.93)% 20% 2.63% 15.82%

2017- 2018- 2019- 2017- 2018- 2019- 2017- 2018- 2019-

Banks Current Ratio Quick Ratio

2017-2018 2018-2019 2019-2020 2017-2018 2018-2019 2019-2020

SBI Bank 0.08 0.09 0.09 13.83 18.06 17.05

HDFC Bank 0.04 0.05 0.04 17.48 16.61 16.62

ICICI Bank 0.11 0.13 0.10 3.57 10.57 9.5

Axis Bank 0.10 0.10 0.13 20.2 17.8 17.60

v. Identifying Cost centers and Profit Centers of the company

vi. Identifying the breakeven point of the company / Product

Product Line of ICICI Bank

Sr. Product Products

2. Insurance 1) Life Insurance 2) General Insurance 3) PM Social Security

4. Loans 1) Personal Loans 2) Home Loans 3) Car Loans 4) Two-wheeler

5. Cards 1) Credit Cards 2) PL on Credit Card 3) Debit Card 4) Travel Card

6. Investment 1) Fixed Deposit 2) National Pension System 3) Bonds 4) Senior

8. Internet & 1) iMobile 2) Pockets by ICICI Bank 3) SMS Banking 4)

9. Corporate 1) API Solutions 2) Collections 3) Current Account 4) Payments 5)