Harsh Singh (20BBA2093) SIP Report Final For Printout

A
Summer Internship Project

Report on
“A STUDY OF INSURANCE POLICIES TERMS AND CONDITION ”
Submitted for partial fulfillment of requirement for the

award of degree
Of
Bachelor of Business Administration
Chandigarh University, Mohali
Supervision By: Submitted By:

MEEDHA GUPTA PRIYANKA PRAHARAJ
Associate Professor UID: 21BBA2730
BBA-V Semester
Chandigarh University, Mohali

DECLARATION
I the undersigned solemnly declare that the report of the project work
entitled "study of insurance policies terms and conditions ", is based
my own work carried out during the course of my study under the
supervision of Ms. Medha Gupta (Associate professor, Chandigarh
University, Mohali.
I assert that the statements made and conclusions drawn are an

outcome of the project work. I further declare that to the best of my
knowledge and belief that the project report does not contain any part
of any work which has been submitted for the award of any other
degree/diploma/certificate in this University or any other University.
(Signature of the Candidate)

Priyanka Praharaj
UID: 21BBA2730
i
DUBBAL INSURANCE BROKER PVT LIMITED
DIRECT(GENERAL),
IRDA LICENCE NO. 845/VALID UP TO 25/8/2025
GST NO. 06AAJCD286M129
CERTIFICATE BY SUPERVISOR
This to certify that the report of the project submitted is the outcome of
the project work entitled "A Study on Rural Finance Provided by ICICI
Bank" carried out by Harsh Singh bearing UID: 20BBA2093 Carried by
under my guidance and supervision for the award of Degree in Bachelor
of Business Administration of Chandigarh University
To the best of my knowledge the report
i) Embodies the work of the candidate him/herself,
ii) Has duly been completed,
iii) Fulfils the requirement of the ordinance relating to the BBA degree
of the University and
iv) Is up to the desired standard for the purpose of which is submitted.
(Signature of the Supervisor)

Name: Aman Ullah Khan
Designation: General Manager
Department: Rural Finance
Name & Address of the company: ICICI Bank
Hazratganj, Lucknow
i
CERTIFICATE BY GUIDE
This to certify that the report of the project submitted is the outcome of the project work entitled “A
STUDY ON INSURANCE POLICIES TERMS AND CONDITIONS”, carried out by
PRIYANKA PRAHARAJ bearing UID : - 21BBA2730 Carried by under my guidance and supervision
for the award of Degree in Bachelor of Business Administration of Chandigarh University.
To the best of my knowledge the report
Embodies the work of the candidate her/herself,

Has duly been completed,
Fulfills the requirement of the ordinance relating to the BBA degree of the University
and Is up to the desired standard for the purpose of which is submitted.
………………………………………………..
(Signature of the Supervisor)

Name: - Ms. Medha Gupta
Designation: -
i
ACKNOWLEDGEMENT
The past 6 weeks working on this project under the guidance of my Project Leader
and Guide has greatly influenced my way of thinking towards facing the challenges
during day-to-day development of this project. This will help me a lot in future as I
move further ahead in my professional life in the days to come.
I am especially indebted to my Project Guide, Ms. MEDHA GUPTA, without whose

precious time & expert guidance, the project would not have taken the current shape.
Her guidance and in-depth knowledge of financial concepts have boosted my
confidence to complete this project successfully. She made the intricacies of the
existing project clear to me and deserves special thanks for technical guidance
throughout the project. She was highly supportive to develop this project.
A formal statement of acknowledgement will hardly meet the ends of justice in the
matter of expressing my deep sense of gratitude and obligation to all those who helped
me in the completion of this project report.
Last but not the least I would also like to express my gratitude to dubbal insurance
company’s employees and all my friends who helped me a lot throughout this project.
Priyanka Praharaj
i
PREFACE
The importance of insurance in modern economies is unquestioned and

has been recognized for centuries. Insurance “is practically a necessity to
business activity and enterprise.” But insurance also serves a broad public
interest far beyond its role in business affairs and its protection of a large
part of the country’s wealth.
It is the essential means by which the “disaster to an individual is shared
by many, the disaster to a community shared by other communities; great
catastrophes are thereby lessened, and, it may be, repaired.” Insurance is
an essential element in the operation of sophisticated national economies
throughout the world today. Without insurance coverage, the private
commercial sector would be unable to function. Insurance enables
businesses to operate in a cost-effective manner by providing risk transfer
mechanisms whereby risks associated with business activities are
assumed by third parties.
It allows businesses to take on credit that otherwise would be unavailable
from banks and other credit-providers fearful of losing their capital
without such protection, and it provides protection against the business
risks of expanding into unfamiliar territory – new locations, products or
services – which is critical for encouraging risk taking and creating and
ensuring economic growth. In the course of Bachelor In Business
Administration (B.B.A.), every student required to undergo application
based summer internship after the completion of one year.During the
summer internship every student come to know about the importance of
insurance and financial literary.
v
INDEX
Declaration i
Certificate by Ii
Company Certificate iii
by Guide iv
Acknowledgement
Preface v
Table of Contents
Chapter Title Page No.
1 Introduction 3-38
2 Review of literature 39-47
3 Research Methodology 48-51
3.1 Objective of the Study
3.2 Research Plan
3.3 Data Collection
3.4 Sample Plan
4 Data Analysis ` 52-66

5 Finding,Suggestion,Conclusion, 67-72
Implications &Limitations
Bibliography
Appendix
v
LIST OF TABLES
Table no. Title Page no.
4.1 Age profile of the respondents 55
4.2 Profession of the respondents 56
4.3 Income level (per annum) 57
4.4 Lenders from where people take loan. 58
4.5 Purpose of borrowing a loan 59
4.6 People willing to take loan from Pvt. Banks. 60
4.7 Amount of loan people want to borrow. 59
4.8 Time interval respondents have taken loan 60
4.9 People look into, before taking loan from a bank 63
4.10 Banks from which ever loan was taken 64
4.11 Awareness about ICICI Rural Loans 65
Priyanka praharaj, BBA-V SEM, CHANDIGARH UNIVERSITY, 2021- 1

LIST OF FIGURES
Figure Title Page no.

no.
4.1 Age profile of the respondents 55
4.2 Profession of the respondents 56
4.3 Income level (per annum) 57
4.4 Lenders from where people take loan. 58
4.5 Purpose of borrowing a loan 59
4.6 People willing to take loan from Pvt. Banks. 60
4.7 Amount of loan people want to borrow. 61
4.8 Time interval respondents have taken loan 62
4.9 People look into, before taking loan from a bank 63
4.10 Banks from which ever loan was taken 64
4.11 Awareness about ICICI Rural Loans 65

CHAPTER 1
INTRODUCTION

1.1 INTRODUCTION OF INDIAN BANKING SYSTEM
A HISTORICAL PERSPECTIVE
The earliest banks in India can be traced to the three presidency banks (in Bengal,
Mumbai, and Chennai) in the early 1980s. Subsequently with the emergence of
several small banks in the country, the number of banks had gone up 105 by
December by 1934. In 1921, the three-presidency banks were merged into the imperial
bank of India, which, apart from usual commercial operations, also took over certain
central banking functions. Since the Reserve Bank of India was established as a full –
fledged central bank of the country in 1935.
The Imperial bank of India was nationalized and came to be known as the State Bank
of India the establishment of the state bank of India was one of the significant steps
taken by the government of India to control its expanding economy.
The banking system witnessed a steady growth during the post- independence period
and by the mid- sixties the system has become fairly strong and compact. However
several deficiencies in their functioning were noticed, mainly in terms of geographical
coverage and credit deployment. The network of branches of various banks covered
only a limited segment of the population in major cities while the rural areas and semi-
urban areas were totally neglected. it was also noticed that substantial gaps in credit
deployment existed in financing agriculture, small - scale industry and self - employed
persons. Further, the ownership pattern of banks showed the concentration of
economic power in few hands
Definition Of Banking
In Section 5(b) of the Banking Regulations Act, 1949. “Banking” is defined as

accepting for the purpose of lending and investments, deposits of money from the
public, repayable on demand or otherwise, and withdraw able to cheque, draft, order
or otherwise.”
Development of Banking in India

Banking activities are performed in India since ancient times. Moreover some of the
banking activities performed in ancient times are still performed in modern days also.
In ancient time, when Indians left their homes for pilgrimages or business for long
period of time, they deposited their money and valuables for sale keeping with persons
of repute. Over time, a practice developed to lend a part of such money deposited the
needy persons to earn or interest or usury as it was called then. The person with whom
money was deposited for safe custody enjoyed a good reputation and was an
indispensable pillar of ancient Indian Society. In this way, the banking activities were
performed by an individual or group of individual privately in India since ancient
times.
Banking activities existed in India even before the vedic times, where giving and
taking of Credit in one form of the other was where giving and taking of Credit in one
form of the other was prevalent the ancient Hindu Literature and Scriptures refer to the
money lending activities. Mostly of books are in Sanskrit and Pali language. In the
ancient times, the main functions of the banks relating to individual or the state in the
times of crises.
Although the origin of the banking in India was in the form of money lending
business, the transition from money lending to formal banking took place in 2 nd
century. All banking activities were under the control of Private Sector. The persons
who performed banking activities were known as shreslities. Nagar Seths, Sharaf and
Ehietties. These names are still popular in modern India.
The English Agency Houses in Calcutta and Mumbai began to serve as a banker of the
East India Company. They finance the movement of crops, issued paper money and
passed the way for establishment of joint stock banks. The earliest of these was
established in 1770 by one of the Agency Houses in Calcutta and its business was
closely connected with other houses. But it was wound up in 1832. when the firm of
Alexander and Company, with which it was intimately connected, failed. The Bengal
bank and the General Bank of India was established in 1784 and 1786 respectively.

CLASSIFICATION OF BANKS
tructure of scheduled Commercial Banks
Public Sector Banks Private

Sector
Banks
Association SBI&Associated Bank Private
ForeignBank
Bank Nationalized
RRB’s
DEVELOPMENT OF PRIVATE SECTOR BANK

With the increase of wealth and Commerce in Europe, private Bankers established
themselves in all the principle cities and towns. They received money on deposit, they
managed the money to such borrowers as could give the necessary security and they
brought and sold bill of exchange, billion and coin.

The development of business of banking can mainly be attributed to the London
Goldsmiths during the reign of queen Elizabeth. They used to receive their customers’
valuables and funds for safe custody. Their receipts acknowledging the same in the
course of time became payable to the bearer on demand and hence enjoyed
considerable circulation. The Goldsmith used to deposit their funds/reserves in the
exchequer and under the care of the Government.
However, the ruin of Goldsmiths proved as turning point in the English Banking. It let
to the growth of private banking and establishment of Bank of England in 1694, is the
prototype and exemplar of all our modern banks; its history, therefore, will deserve the
particular attention.
Bank of England derived huge profits from the circulation of it. The other private
English Bankers issued their own notes, payable on and these notes according to the
credit of the issuers, obtained a great circulation in the neighborhood of the bankers
who issued them.
REGIONAL RURAL BANKS

The RRBs were established with a view to combining the local feel and familiarity
with rural problems. The RRBs are primarily sponsored by the commercial banks. The
primary objectives of these banks are:
 Providing credit for agricultural purposes to small entrepreneurs engaged

in trade and industry and other productive activities in rural areas.
 To cater the needs weaker sections of the community.
CURRENT SCENARIO
The Indian has finally worked up to the competitive dynamics of new Indian market
and is addressing the relevant issues take on the multifarious challenges of
globalization. Banks that employ IT solutions are perceived to be futuristic and
proactive players capable of meeting the multifarious requirement of large customer
base. Private Banks have been fast on the uptake and are reorienting their strategies
using the Internet as a medium.

The Indian banking has come from a long from being a sleepy business institution to a
highly proactive and dynamic entity this transformation has been largely brought by
the large dose of liberalization and economic reforms that allowed exploring new
business opportunities rather than generating revenues from conventional streams.
The Indian industry has confidently hit the growth trial that pick in activity is best
reflected in the banking sector which after all is as candid a mirror of a country’s
economy as you could ever find. Most of the Indian financial intermediaries have been
keeping pace with the deepening market economy, riding the opportunity that come
along with reforms even as they brace themselves for increased competition both
foreign and private by strengthening prudential norms and leveraging technology to
ensure that growth engine hums smoothly along
The essential function of a bank is to provide services related to the storing of value
and the extending credit. The evolution of banking dates back to the earliest writing,
and continues in the present where a bank is a financial institution that provides
banking and other financial services. Currently the term bank is generally understood
an institution that holds a banking license. Banking licenses are granted by financial
supervision authorities and provide rights to conduct the most fundamental banking
services such as accepting deposits and making loans. There are also financial
institutions that provide certain banking services without meeting the legal definition
of a bank, a so called non-bank. Banks are a subset of the financial services industry.
The word bank is derived from the italian banca, which is derived from German and
means bench. The terms bankrupt and "broke" are similarly derived from banca rotta,
which refers to an out of business bank, having its bench physically broken. Money
lenders in Northern Italy originally did business in open areas, or big open rooms,
with each lender working from his own bench or table.
Typically, a bank generates profits from transaction fees on financial services or the
interest spread on resources it holds in trust for clients while paying them interest on
the asset.

Services typically offered by banks
Although the type of services offered by a bank depends upon the type of bank and the
country, services provided usually include:
 Directly take deposits from the general public and issue checking and
saving accounts.
 Lend out money to companies and individuals (see money lender)
 Cash checks.
 Facilitate money transactions such as wire transfers and cashiers checks
 Issue credit cards, ATM, and debit cards and online banking.
 Storage of valuables, particularly in a safe deposit box.

Types of banks
There are several different types of banks including:
Central banks usually control monetary policy and may be the lender of last
resort in the event of a crisis. They are often charged with controlling the money
supply, including printing paper money. Examples of central banks are the European
Central Bank and the US Federal Reserve Bank.
Investment banks underwrite stock and bond issues and advice on mergers.
Examples of investment banks are Goldman Sachs of the USA or Nomura Securities
of Japan.
Merchant banks were traditionally banks which engaged in trade financing. The
modern definition, however, refers to banks which provide capital to firms in the form
of shares rather than loans. Unlike Venture capital firms, they tend not to invest in new
companies.
Private banks manage the assets of the very rich. An example of a private bank
is the Union Bank of Switzerland. Savings banks write mortgages exclusively.

Offshore banks are banks located in jurisdictions with low taxation and
regulation, such as Switzerland or the Channel Islands. Many offshore banks are
essentially private banks.
Commercial banks primarily lend to businesses (corporate banking)
Retail banks primarily lend to individuals. An example of a retail bank is Washington

Mutual of the USA. Universal banks engage in several of these activities. For
example, Citigroup, a large American bank, is involved in commercial and retail
Lending; it owns a merchant bank (Citicorp Merchant Bank Limited) and an

investment bank (Salomon Smith Barney); it operates a private bank (Citigroup
Private Bank); finally, its subsidiaries in tax-havens offer offshore banking services to
customers in other countries.
Banks are prone to crisis

The traditional bank has an inherent tendency to crisis. This is because the bank
borrows short term and lends leveraged long term. The sum of deposits and the bank's
capital will never equal more than a modest percentage of the loans the bank has
outstanding.
Even if liquidity is not a concern, if there is no run on the bank, banks can simply
choose a bad portfolio of loans, and lose more money than they have. The US Savings
and Loan Crisis in the late 1980s and early 1990s is such an incident.
Role in the money supply

A bank raises funds by attracting deposits, borrowing money in the inter-bank market,
or issuing financial instruments in the money market or a securities market. The bank
then lends out most of these funds to borrowers. However, it would not be prudent for
a bank to lend out all of its balance sheet. It must keep a certain proportion of its funds
in reserve so that it can repay depositors who withdraw their deposits. Bank reserves
are typically kept in the form of a deposit with a central bank. This behavior is called
fractional-reserve banking and it is a central issue of monetary policy. Some

governments (or their central banks) restrict the proportion of a bank's balance sheet
that can be lent out, and use this as a tool for controlling the money supply.
Even where the reserve ratio is not controlled by the government, a minimum figure
will still be set by regulatory authorities as part of banking supervision.
Regulation
The combination of the instability of banks as well as their important facilitating role
in the economy led to banking being thoroughly regulated. The amount of capital a
bank is required to hold is a function of the amount and quality of its assets. Major
banks are subject to the Basel Capital Accord promulgated by the Bank for
International Settlements. In addition, banks are usually required to purchase deposit
insurance to make sure smaller investors are not wiped out in the event of a bank
failure. Another reason banks are thoroughly regulated is that ultimately, no
government can allow the banking system to fail. There is almost always a lender of
last resort—in the event of a liquidity crisis (where short term obligations exceed short
term assets) some element of government will step in to lend banks enough money to
avoid bankruptcy.

1.2 OVERVIEW OF ICICI BANK
ICICI Banks are usually managed conservatively, partly because of regulatory
limitations on assets holdings and entry, but also because of the force of a tradition
antagonistic of speculative risk – taking and aggressive methods of soliciting business.
ICICI and other banks mostly deal with other people’s money, i.e. depositors. Their
own funds in the form of share capital and resources generally do not constitute more
than 5% of the total resources of the banks. The deposits are either repayable on
commercial bank to meet the claims of the depositors on demands or on due dates will
result in loss of credibility of the bank. ICICI banks have, therefore to perform to
difficult task of maintaining and equilibrium between liquidity of profitability.
ICICI banks are established under private sector as well as under Government Sector
in many countries. Banking organizations have been established by industrialist, firm
or joint stock companies under private sector.
In some cases, the banks are under the joint management of State and Private Sector
with overall control of State, whether the banking activities should be in Private
Sector or operate under Government Supervision in a country.
There are many points, which are require to be considered in death for setting up
banking organization. These points very from situation to situation, time to time,
country to country, local to international and from small –scale to large activities.
Banking business in private sector is flourishing since 18th Centuries in Europe.

Banking operation in private sector are performed since ancient times in India.
The Government are keeping regular watch on private bank performance through their
Central Bank, Banking or other legislative laws. The functions of the banks (Private
Sector or Public Sector) are wide and diverse in Modern Economies. Banking
activities under close watch of Government. Huge public money is mobilized and
canalized in different investment
Mission
ICICI will leverage our people, technology, speed and financial capital to:

be the banker of first choice for our customers by delivering high quality, world-class
products and services expand the frontiers of our business globally play a proactive
role in the full realization of India’s potential. Maintain a healthy financial profile and
diversify our earnings across businesses and geographies. Maintain high standards of
governance and ethics. Contribute positively to the various countries and markets in
which ICICI operate. Create value for our stakeholders.
ORIGINATION
The development banking institution set up in the country, after Industrial Finance
Corporation (IFC); was the Industrial Credit Investment Corporation of India (ICICI).
It was set up during 1955 by government of India and World Bank. It was to be a
private sector development bank in so far as there was no participation by government
in its share capital
Its main objectives when it was started were:-
 to encourage and assist industrial investment in private sector

 to provide foreign currency loans
 to develop underwriting facilities in India, which was not taken up by IFC at
that time
In broad operational terms, the ICICI assist
 In the creation, expansion and modernization of private sector enterprises

 In encouraging and promoting participation of private capital, both internal
and external, in the ownership of industrial investment through providing
equity participation, underwriting of new issue

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

1958: Mr.G.L.Mehta appointed the second Chairman of ICICI Ltd.
1960: ICICI building at 163, Back bay Reclamation, inaugurated.
1961: The first West German loan of DM 5 million from Kredianstalt obtained.
1967: ICICI made its first debenture issue for Rs.6 crore, which was
oversubscribed. 1969: The first two regional offices in Calcutta and Madras set up.
1972: The second entity in India to set up merchant banking services. : Mr. H. T.
Parekh appointed the third Chairman of ICICI.
1977: ICICI sponsored the formation of Housing Development Finance Corporation.
Managed its first equity public issue
1978: Mr. James Raj appointed the fourth Chairman of ICICI.
1979: Mr. Siddharth Mehta appointed the fifth Chairman of ICICI.
1982: ICICI became the first ever Indian borrower to raise European Currency Units.
: ICICI commences leasing business.
1984: Mr. S. Nadkarni appointed the sixth Chairman of ICICI.
1985: Mr. N.Vaghul appointed the seventh Chairman and Managing Director of
ICICI. 1986: ICICI became the first Indian institution to receive ADB Loans. ICICI,
along with UTI, set up Credit Rating Information Services of India Limited, India's
first professional credit rating agency. : ICICI promotes Shipping Credit and
Investment Company of India Limited. : The Corporation made a public issue of
Swiss Franc 75 million in Switzerland, the first public issue by any Indian entity in the
Swiss Capital Market.

1987: ICICI signed a loan agreement for Sterling Pound 10 million with
Commonwealth Development Corporation (CDC), the first loan by CDC for financing
projects in India.
1988: Promoted TDICI - India's first venture capital company.
1993: ICICI Securities and Finance Company Limited in joint venture with J. P.
Morgan set up. : ICICI Asset Management Company set up.
1994: ICICI Bank set up.
1996: ICICI Ltd became the first company in the Indian financial sector to raise GDR.
: SCICI merged with ICICI Ltd. : Mr. K. V. Kamath appointed the Managing Director
and CEO of ICICI Ltd
1997: ICICI Ltd was the first intermediary to move away from single prime rate to
three-tier prime rates structure and introduced yield-curve based pricing. : The name
The Industrial Credit and Investment Corporation of India Ltd changed to ICICI Ltd.
: ICICI Ltd announced the takeover of ITC Classic Finance.
1998: Introduced the new logo symbolizing a common corporate identity for the
ICICI Group. : ICICI announced takeover of Anagram Finance.
1999: ICICI launched retail finance - car loans, house loans and loans for consumer
durables. : ICICI becomes the first Indian Company to list on the NYSE through an
issue of American Depositary Shares.
2000: ICICI Bank became the first commercial bank from India to list its stock on
NYSE. : ICICI Bank announces merger with Bank of Madura.
2001: The Boards of ICICI Ltd and ICICI Bank approved the merger of ICICI with
ICICI Bank.
2002: ICICI Ltd merged with ICICI Bank Ltd to create India’s second largest bank in
terms of assets. ICICI assigned higher than sovereign rating by Moody’s. : ICICI Bank
launched India’s first CDO (Collateralized Debt Obligation) Fund named Indian
Corporate Collateralized Debt Obligation Fund (ICCDO Fund). : "E Lobby", a self-
service banking centre inaugurated in Pune. It was the first of its kind in India. : ICICI
Bank launched Private Banking. : 1100-seat Call Centre set up in Hyderabad : ICICI
Bank Home Shoppe, the first-ever permanent aggregation and display of housing
projects in the county, launched in Pune, : ATM-on-Wheels, India’s first mobile
ATM, launched in Mumbai.
2003 : The first Integrated Currency Management Centre launched in Pune. : ICICI
Bank announced the setting up of its first ever offshore branch in Singapore. : The
first

offshore banking unit (OBU) at Seepz Special Economic Zone, Mumbai, launched. :
ICICI Bank’s representative office inaugurated in Dubai. : Representative office set up
in China. : ICICI Bank’s UK subsidiary launched. : India’s first ever "Visa Mini
Credit Card", a 43% smaller credit card in dimensions launched. : ICICI Bank
subsidiary set up in Canada. : Temasek Holdings acquired 5.2% stake in ICICI Bank. :
ICICI Bank became the market leader in retail credit in India.
2004 : Max Money, a home loan product that offers the dual benefit of higher
eligibility and affordability to a customer, introduced. : Mobile banking service in
India launched in association with Reliance Infocom. : India’s first multi-branded
credit card with HPCL and Airtel launched. : Kisan Loan Card and innovative, low-
cost ATMs in rural India launched. : ICICI Bank and CNBC TV 18 announced India’s
first ever awards recognizing the achievements of SMEs, a pioneering initiative to
encourage the contribution of Small and Medium Enterprises to the growth of Indian
economy. : ICICI Bank opened its 500th branch in India. : ICICI Bank introduced
partnership model wherein ICICI Bank would forge an alliance with existing micro
finance institutions (MFIs). The MFI would undertake the promotional role of
identifying, training and promoting the micro-finance clients and ICICI Bank would
finance the clients directly on the recommendation of the MFI. : ICICI Bank
introduced 8-8 Banking wherein all the branches of the Bank would remain open from
8a.m. to 8 p.m. from Monday to Saturday. : ICICI Bank introduced the concept of
floating rate for home loans in India. 2007: First rural branch and ATM launched in
Uttar Pradesh at Delpandarwa, Hardoi.
: "Free for Life" credit cards launched wherein annual fees of all ICICI Bank Credit
Cards were waived off. : ICICI Bank and Visa jointly launched mChq – a
revolutionary credit card on the mobile phone. : Private Banking Masters 2007, a
nationwide Golf tournament for high networth clients of the private banking division
launched. This event is the largest domestic invitation amateur golf event conducted in
India. : First Indian company to make a simultaneous equity offering of $1.8 billion in
India, the United States and Japan. : Acquired IvestitsionnoKreditny Bank of Russia. :
ICICI Bank became the largest bank in India in terms of its market capitalization. :
ICICI Bank became the first private entity in India to offer a discount to retail
investors for its follow-up offer.
2008: ICICI Bank became the first Indian bank to issue hybrid Tier-1 perpetual debt
in the international markets. : ICICI Bank subsidiary set up in Russia. : Introduced a
new product - ‘NRI smart save Deposits’ – a unique fixed deposit scheme for
nonresident

Indians. : Representative offices opened in Thailand, Indonesia and Malaysia. : ICICI
Bank became the largest retail player in the market to introduce a biometric enabled
smart card that allow banking transactions to be conducted on the field. A low-cost
solution, this became an effective delivery option for ICICI Bank’s micro finance
institution partners. : Financial counseling centre Disha launched. Disha provides free
credit counseling, financial planning and debt management services. : Bhoomi puja
conducted for a regional hub in Hyderabad, Andhra Pradesh.
2009: ICICI Bank‘s USD 2 billion 3-tranche international bond offering was the
largest bond offering by an Indian bank. : Sangli Bank amalgamated with ICICI Bank.
: ICICI Bank raised Rs 20,000 crore (approx $5 billion) from both domestic and
international markets through a follow-on public offer. : ICICI Bank’s GBP 350
million international bond offering marked the inaugural deal in the sterling market
from an Indian issuer and also the largest deal in the sterling market from Asia. :
Launched India’s first ever jewellery card in association with jewelry major Gitanjali
Group. : ICICI Bank became the first bank in India to launch a premium credit card --
The Visa Signature Credit Card. : Foundation stone laid for a regional hub in
Gandhinagar, Gujarat. : Introduced SME Toolkit, an online resource centre, to help
small and medium enterprises start, finance and grow their business. : ICICI Bank
signed a multi-tranche dual currency US$
1.5 billion syndication loan agreement in Singapore. : ICICI Bank became the first
private bank in India to offer both floating and fixed rate on car loans, commercial
vehicles loans, construction equipment loans and professional equipment loans. : In a
first of its kind, nation wide initiative to attract bright graduate students to pursue a
career in banking, ICICI Bank launched the "Probationary Officer Programme". :
Launched Bank@home services for all savings and current a/c customers residing in
India : ICICI Bank Eurasia LLC inaugurated its first branch at St Petersburg, Russia.
2008 : ICICI Bank enters US, launches its first branch in New York : ICICI Bank
enters Germany, opens its first branch in Frankfurt : ICICI Bank launched iMobile, a
breakthrough innovation in banking where practically all internet banking transactions
can now be simply done on mobile phones. : ICICI Bank concluded India's largest
ever securitization transaction of a pool of retail loan assets aggregating to Rs. 48.96
billion (equivalent of USD 1.21 billion) in a multi-tranche issue backed by four
different asset categories. It is also the largest deal in Asia (ex-Japan) in 2008 till date
and the second largest deal in Asia (ex-Japan & Australia) since the beginning of
2009. : ICICI Bank

launches ICICIACTIVE - Banking Interactive Service - along with DISHTV, which
will allow viewers to see information about the Bank's products and services and
contact details on their DISHTV screens. : ICICI Bank and British Airways launch co-
branded credit card, which is designed to earn accelerated reward points to the card
holders with every British Airways flight or by spending on everyday purchases :
ICICI Bank Board appoints Mr K. V. Kamath as non-executive Chairman and Ms
Chanda Kochhar as Managing Director & CEO effective May 1, 2009, while the
existing non- executive Chairman Mr N Vaghul retires after completing his term on
April 30, 2009 2009 : ICICI bank ties up with BSNL Cell One for bill payments, it
will facilitate bill payment for BSNL Cell One users through www.icicibank.com
across all the 27 circles of BSNL. : ICICI Bank Limited acting through its Hong Kong
Branch (ICICI Bank) signed an agreement on Export Credit Line totaling up to
US$100 million with the Japan Bank for International Cooperation (JBIC) which
constitutes the international wing of Japan Finance Corporation. : ICICI Bank Limited
acting through its Hong Kong Branch (ICICI Bank) signed a loan agreement with the
Export-Import Bank of China (China Exim) for USD 98 million under the Two- step
Buyer Credit (Export Credit) arrangement. ICICI Bank is the first Indian Bank to have
entered into this arrangement with China Exim : ICICI Bank with Singapore Airlines
launched “ICICI Bank Singapore Airlines Visa Platinum Credit Card”, the Card has
exclusive privileges especially designed for the members.
Board Member
Ms Chanda Cocchar, Chairman
Mr. Sridar Iyengar
Mr. Lakshmi N. Mittal
Mr. Narendra Murkumbi
Dr. Anup K. Pujari
Mr. Anupam Puri
Mr. M.S. Ramachandran
Mr. M.K. Sharma
Mr. P.M. Sinha
Prof. Marti G. Subrahmanyam
Mr. T.S. Vijayan
Mr. V. Prem Watsa

Ms. Chanda Kochhar, Managing Director & CEO
Mr. Sandeep Bakhshi, Executive Director
Mr. Sonjoy Chatterjee, Executive Director
Mr. K. Ramkumar, Executive Director
Mr. N. S. Kannan, Executive Director & CFO
ICICI Group

1.3 INTRODUCTION TO RURAL FINANCE
PROVIDED BY ICICI
Corporate Supply-Chain Links
ICICI Bank's agri-banking has created an interface between rural areas and
mainstream financial service providers to maximize outreach and leverage
technology. This reduces the cost of finance delivery, devises customized solutions
and offers complete supply-chain solutions for the corporate partner.
The Bank acts as a cohesive partner between corporate and rural aggregators (like co-
operatives, MFIs, NGOs). These aggregators have the inherent strength of grass root
relationships in the rural domain.
 Also, there is a range of financial products for these aggregators and their
members, which have been developed by the bank. Advantages offered to
clients
 Aids the corporate to establish a supply chain in the rural domain.
 Helps market the corporate products in rural areas.
 Facilitates economic development and employment in rural areas
Farmer Service Centres

India's rural revolution has come through co-operatives in sectors such as milk and
sugar. The Bank has initiated measures to convert these district level co-operatives
into full-fledged Farmer Service Centers (FSC) by clubbing them with other co-
operative societies.
Services offered by the FSCs
One-point service providers to farmers. The Bank provides credit assistance to
farmers utilizing the infrastructure of the FSC.
• The FSC would also help strengthen the supply chain.
• This would include an alliance with a number of crop output companies (multi-
nationals, exporters and retailers) who would assure off-take and prices to farmers.
• On the other end of the spectrum, through its relationship with a number of agri-
input companies, the Bank can also bring in input companies so that the entire input

requirement (fertilizer, seed, pesticide) of farmers could be provided under one roof.
FSC initiatives undertaken by various private sector companies have resulted in

substantial value addition at the farm end. The Bank has played a key role in
conceptualizing, developing and implementing the FSC model with various partners.
The Sugar Sector

ICICI Bank has strong ties with the sugar sector. It finances both the sugarcane farmer
and the sugar industry. We structure products at very competitive rates to meet the
needs of the cane growers and the processors.
For the Sugar Industry

Regular commercial banking facilities are available for the sugar industry. We offer
the industry banking services like working capital finance, term loans, forex assistance,
etc. Know more about Transaction Banking
For Farmers
The bank provides Corporate-linked Agricultural loans to farmers associated with
sugar companies. The association may be in form of an agreement to buy agricultural
inputs or sell their produce to the sugar company.
The Plantation Sector

The importance of the plantation sector can be understood from the fact that 15% of
agricultural export earnings come from crops like tea, coffee and rubber - although
these industries occupy only one percent of the total plantation area.
Plantations have lengthy gestation period lasting four to five years, which distinguish
their financial needs. Having long-term industry relations with the plantation industry,
ICICI Bank has developed especially structured products.

The Seeds Sector
Agricultural inputs are an important part of the Bank's agenda in rural banking. In
the seeds sector, it have the following products for our clients
Organizer of finance
Seed organizers undertake seed production on behalf of the seed company. Short-
term loans are extended for seed cultivation or against stocks held by seed
organizers pending the seed-certification process.
The Bank provides financial assistance to seed organizers on a recommendation
and letter of comfort given by seed companies. The credit limit depends on the
value of the seeds to be procured by the seed company from the seed organizer.
The seed company has to make payments directly to the bank on the due date from
payments due to the organizer, and this arrangement is to be confirmed by the seed
company.
Regular working-capital financing

The working capital required for seed companies is seasonal and varies depending
upon the crop portfolio and seasonality. Working capital assessment for seed
companies is done by the cash-flow method. The regular working capital assistance
may be in the form of cash credit or working capital demand loan. Any fluctuations
in the working capital could be structured as cash credit. The balance could be
structured as a working capital demand loan, which is a revolving credit for a fixed
tenor with a minimum stipulated withdrawal.
Short-term loans for peak working capital requirements

Short-term loans for tenures of three to six months to support peak season
requirements can be given during the Kharif and Rabi seasons. The loans are for a
fixed period and are to be repaid at the end of the season. This facility can be
availed of by the seed company to make farmer payments during peak seasons.
The Fertilizer Sector

Fertilizer companies require high working capital due to the seasonal nature of
their sales and the long credit period given to farmers. The industry is characterized

by an established distributor and dealer network, which forms the backbone of the
dispersed sales network. We have developed products in conjunction with
fertilizer companies to suit the needs of their channel partners.
Dealer financing
This product provides short-term finance to dealers of fertilizer companies to make
purchases of products from companies. The finance is to meet the requirements for
the inventory-holding period of the dealer, i.e. typically up to 90 days. Financing to
the dealers would be made on one of the following bases
• Financial recourse in the nature of a Corporate Guarantee for the
overall arrangement
• Non-Financial Recourse in the nature of Letter of Comfort for the overall
arrangement (Stop supply, etc.).
Securitization of Receivables for companies

Many fertilizer companies provide 90-day credit to dealers. These book debts
can be securitized to provide liquidity to a company. The pricing and structure of
the transaction is worked out on a case-to-case basis.
Infrastructure
The Bank has a strong presence in Agri-infrastructure financing. Areas include
financing of various agricultural projects in the agri- infrastructure sector like:
• Warehouses / God owns

• Silos
• Cold Chains
• Refrigerated Transport Infrastructure
• Development of Market Yards
• Agri-Business Clinics
• Value Addition Farm Centers
• Food Parks
• Agri-Export Zones, etc

We are actively involved in conceptualizing and structuring innovative and
customized financial products for infrastructure projects, based on the projects'
arrangement with private and public enterprises. The Bank jointly works with
various warehousing corporations, private infrastructure participants, government
bodies and corporate across the country.
Market Federations
The Bank works with State-level Market Federations (Markfeds) at various
platforms and has several products and services designed for them.
Working Capital
Working Capital facilities designed to take care of the day-to-day business
requirements of the organization.
In accord with the domestic trading business of MARKFED, the Bank provides
cash credit and other customized short-term products
Short-term financing of Fertilizer Distribution

Distribution of fertilizers is a core function of each Markfed.
Strong demand for fertilizers arises at the onset of the Rabi and Kharif seasons, which
coincide with the requirement of funds.
We structure this short-term fund requirement at competitive rates. It replaces the
regular and expensive cash-credit limits.
Long-term Fund Requirement for Expansions/ New Projects

The Bank provides medium-term and long-term funds for new projects and/or
expansions.
We structure the loan so as to reduce the risk and transfer the benefit to the client.
Converting the Marked structure into Farmer Service

Centers
Each State Marketing Federation has a wide distribution network at the district
level. This is called "The District Co-operative Marketing Society" and "The
Primary Agricultural Credit Society (PACS)" network. These are made use of in
distributing

agricultural inputs to farmers.
The Bank helps convert them into Farmer Service Centres to offer a single window
service to farmers
Cash Collection and Disbursement

Regional offices of MARKFED have collections from and payments to their district
level co-operatives.
We provide a solution that would take care of both cash collection and disbursement.
Our solution will provide the following benefits:
• Reduced time for cash collection and disbursement
• Provide instantaneous funds transfer from/ to district
level branches and the head office.
• Customized MIS reports, giving the status of cash collected
and disbursed from each centre, and various other customized
reports.
• Our network of 500+ branches and extension counters
provides a technologically advanced network at numerous towns
The Food Processing Sector

Food processing is one of the fastest growing sectors of the Indian economy. The
Bank works with various companies, both established and new, in this sector.
The products offered are:
Working Capital Finance

Working capital finance takes care of the daily business requirements of the
organization.
The bank provides pre-/ post- shipment credits, cash credits and a bill purchasing/
discounting facility based on the requirements of the company.
Term Loans

The Bank gives loans of various tenures according the requirement of the company.
We provide short-term funds to take care of any seasonal requirement and medium-
term and long-term funds for new projects, expansions and upgrading of plants.
Agricultural Commercialization and Enterprise Program

These are USAID funds managed by the Bank. The main purpose is to improve the
investment environment for private agri-business in post-farm horticulture.
The focus is primarily on promoting agri-business innovations and diversity. Activities
covered are fresh and processed fruit and vegetables, herbal products, spices, fruit- and
vegetable-based processed foods, flowers and foliage.
Rural Educational Institutions

Education is the cornerstone of development. ICICI Bank provides loans to rural
educational for investment in infrastructure with an objective to increase their
enrolment of students and
provide better facilities.
The product caters to the need of privately run educational institutions/ trust/ societies
for addition or expansion in infrastructure like adding new class rooms, lab facilities,
residential facilities for students/ teachers, transportation, establishing a new school/
college etc by an existing institution.
No White Spaces
In order to scale up our outreach to the under-served population in rural areas, we
have adopted the 'No White Spaces' (NWS) strategy for our retail business.
We intend to cover the selected areas in rural India so that there is an ICICI Bank
customer touch-point within a radius of 10km of a customer -- thus leaving 'no
white space' in those locations .

PRODUCTS OFFERED BY ICICI BANK TO RURAL
PEOPLE
1. Rural Savings Account.
You can approach us through your local Business Correspondent. Rural Savings
Account is a Zero balance account and hence there is no minimum balance
requirement. Interest earned on your Rural Savings Account balance shall be credited
to your account on a half yearly basis in the months of September and March. You
can change the nominee(s) by making a declaration to that effect, in the appropriate
form, which is available with the Business Correspondent.
Features
 The Rural Savings Account will be available through Business Correspondents.

 The account is zero balance with no initial deposit.
 The Customer is provided with an E-passbook.
 All transactions in the accounts are done only after a biometric authentication.
 Nomination facility is available.
Eligibility
The account is available only for,
 Resident Indians above the age of 18 years. NRIs and foreign nationals are
not eligible for this Account.
 Individuals residing in rural areas.
Documentation
Applicants must satisfy the following documentation requirements:
 Identity proof
 Proof of communication address

Revision in Interest Rates on Domestic Term Deposit
 Domestic Interest Rates - Deposits less than Rs.1.5 mn

 Interest Rates for Senior Citizens
 Penalty on Pre-mature withdrawal (All Categories)
 Interest Rate for ICICI Bank Tax-Saver Fixed Deposit
 Interest Rates for NRI Schemes
Savings Bank Account: 3.50%
Interest Rate for ICICI Bank Tax-Saver Fixed Deposit (Tenure – 5 Years)
 Applicable Rate of Interest on ICICI Bank Tax-Saver Fixed Deposit is 8.25%

p.a. for General Category for Single Deposits of value upto Rs. 1 Lac.
 Applicable Rate of Interest on ICICI Bank Tax-Saver Fixed Deposit is 8.75%
p.a. for Senior Citizens Category for Single Deposits of value upto Rs. 1 Lac.
2. Farmer Finance
Providing finance to the farmer for his various needs of inputs and consumption in the
form of crop loans, dairy loans and loans for allied activities to agriculture like
irrigation etc. for input needs and auto loans (two, three and four wheeler) and
personal loans for consumption needs. The customer can also avail of working capital
term loan for setting up a poultry project. Flexible repayment pattern and tenure to
align to the cash flow of the customers
ICICI offer loans up to 5 years based on the type of the loan.

Interest is charged on a monthly/quarterly/half-yearly reducing balance basis as the
case may be. Every installment that is paid has a component of principal as well as
interest. Interest is charged on the principal outstanding after every installment
payment.
Once the loan is disbursed, you shall be getting a schedule of payment that will give
details of how the interest has been charged over the tenure of the loan there is a

nominal one-time file-processing fee that needs to be paid, which is inclusive of
service tax.
Loans can be approved within 2 working days of submission of complete documents
and the field visit being completed.
Any blood relative or spouse can be the co applicant. Blood relatives include father,
mother, brother and sister.
Personal guarantor is not required in case of a land mortgage
The following can be mortgaged as a collateral:
 Crop
 Land
 Building
 Cattle / Livestock
 Vehicles
 Fixed Deposits / RD
 Gold ornaments / jewels
you can still avail of a loan based on your profile, credit strengths and other criteria as
may be decided by ICICI Bank from time to time. ICICI will give you the opportunity
to prepay your loan at any point of time during the tenure of the loan
Reducing balance is a method of charging interest where the interest is charged on the
outstanding principal amount after each installment has been paid. Under this method,
you pay interest only on the loan amount which is outstanding and not on a total flat
basis.
It is not mandatory for you to open an account with ICICI Bank
The stages involved are:
Application along with necessary supporting

documents Documentation and Processing of the
Application Sanctioning the Loan
Disbursement of the Loan.

Eligibility
Agricultural Users
Any individual aged above 18 years at the beginning of the tenure and below 65 years
by the end of the tenure; involved in agriculture for the last 5 years.
 Having minimum of 2 acres of unirrigated land or min of 0.5 acres irrigated if

it is risk-sharing and minimum of 2 acres irrigated & 5 acres non-irrigated
land if it non risk-sharing
 Staying in the same place for at least 3 years.
 Should not have defaulted on earlier loans taken (if any)
 Should have good reputation
 Should be able to provide the necessary documents required for processing of
loans
Guarantor In case the applicant is not able to meet the eligibility norms on his
own, the proposal can be strengthened by a guarantor who could be any known person
of the applicant staying in the same village having an earlier good track record or
owning land.
In case the land of the applicant is mortgaged, in agricultural deals, guarantor is not
required.
Loan Amount
The loan amount varies from customer to customer depending on the type of loan, the
valuation of the land being mortgaged, cost of cultivation, income of the customer and
tenure desired for.
Loans for the following purposes will be available to the customer:
 Crop loan
 Personal Loan
 Vehicle loan
 Dairy loan

 Land Development Loan
 Poultry Loan
Loan Amount
The loan amount varies from customer to customer depending on the type of loan, the
valuation of the land being mortgaged, cost of cultivation, income of the customer and
tenure desired for .
Loans for the following purposes will be available to the customer:
 Crop loan
 Dairy loan
 Land Development Loan
 Poultry Loan
Documentation
The following documents are required from the applicant
 Application form with photograph of the customer and all co applicants

and/or guarantor.
 Form 60/61 (if applicable)
 Land records of the borrower/s.
 Land valuation and title search report of the land & security creation.
 Residence proof of the borrower/s.
 Identity proof of the borrower/s.
 Signature verification of the borrower/s
 Two security cheques
 End-use letter for the loan
 Standard Terms and Conditions, duly signed by the applicant
 Hypothecation document signed by customer on stamp paper (if applicable).
In case the customer has earlier availed of a loan from any bank/finance company,
providing the track record of the loan repayment can significantly improve the credit
assessment of the customer.

Loan Approval
Our large network of sales and verification personnel ensure that your loan is
approved in the fastest time possible. ICICI have our Credit Managers stationed at all
important locations who will ensure that your loan gets approved within no time.
This localized approval is one of the main factors which allow us to give a fast and
consistent service through our Vikas Sahyogis to the customers.
Rates & Fees
The rate of interest varies from customer to customer and depends on various factors
like the current PLR (Prime Lending Rate), land holding, loan amount, viability of the
proposition and the underlying collaterals provided. It will be our endeavor for you to
get the best possible rate of interest.
Repayment
Repayment can be scheduled over a period of 6 months to 5 years depending on the

type of the loan. The repayment can be monthly, quarterly, half yearly or yearly based
on the type of loan and cash flow of the customer
Repayment can be done through post dated cheques or by depositing cash/demand

drafts to your Vikas Sahyogi / ICICI Bank personnel on the due date. Please
ensure that you get a receipt for the money deposited.
There are penalties for late payment of dues.
Application Process
The application is to be made through our DST (Direct Sales Team) or RMA (Rural
Marketing Agent), who will guide you through the process of applying for the loan.
3. Farm Equipment Loans

ICICI offer loans upto 6 years for agricultural applications. For a commercial
application, loans upto 3 years are available.
Interest is charged on a monthly/quarterly/half-yearly reducing balance basis as the

case may be. Every installment that is paid has a component of principal as well as
interest. Interest is charged on the principal outstanding after every installment
payment.
Once the loan is disbursed, you shall be getting a schedule of payment that will give
details of how the interest has been charged over the tenure of the loan. There is a
nominal one-time file-processing fee that needs to be paid. Service tax of 10.2% on
the processing fees needs to be paid separately
Loans can be approved within 2 working days of submission of complete documents

and the field visit being completed
Any blood relative or spouse can be the co applicant. Blood relatives include father,
mother, brother and sister.
The tractor will be hypothecated in favor of ICICI Bank. If required, land can also be
mortgaged as a collateral. you can still avail of a loan based on your profile, credit
strengths and other criteria as may be decided by ICICI Bank from time to time. ICICI
will give you the opportunity to prepay your loan at any point of time during the
tenure of the loan. ICICI will charge 4% of the principal outstanding at the time pre-
payment of the loan.
Reducing balance is a method of charging interest where the interest is charged on the
outstanding principal amount after each installment has been paid. Under this method,
you pay interest only on the loan amount which is outstanding and not on a total flat
basis. It is not mandatory for you to open an account with ICICI Bank.
The stages involved in getting loan are:
 Application along with necessary supporting documents

 Documentation and Processing of the Application
 Sanctioning the Loan
 Disbursement of the Loan

Features
Preferred financier for almost all leading tractor manufacturers in the country.
Financing farm equipments in over 381 locations spread across the country.
Fast processing of files with easy documentation.
Flexible repayment options in tandem with the farmer's seasonal liquidity.
Monthly, Quarterly and Half-yearly repayment patterns to choose from.
Comfortable repayment tenures from 1 year to 6 years.
Loan Amount
The loan amount varies from customer to customer depending on the eligibility
criteria. ICICI fund a maximum of 85% of the cost of the tractor, and 50% of the cost
of the Trolley.
Agricultural use
Application form with photograph of the customer and all co applicants and/or
guarantor.
Performa Invoice of the asset to be funded from an authorized dealer.
Land records of the borrower/s.
Land valuation and title search report of the
land. Residence proof of the borrower/s.
Identity proof of the borrower/s.
Signature verification of the borrower/s.
Loan agreement, duly signed by the applicants and guarantor.
2 SPDCs (Security Post Dated Cheques) for entire
tenure.
Commercial Use
Application form with photograph of the customer and all co applicants and/or
guarantor.
Performa Invoice of the asset to be funded from an authorized dealer.
Proof of Income (any of the following) :

- Billing statement for the past one year
- Latest Income tax Return
- Last 6 months bank statement
Residence proof of the
borrower/s. Identity proof of the
borrower/s.
Signature verification of the borrower/s.
Loan agreement, duly signed by the applicants guarantor.
2 SPDCs(Security Post Dated Cheques) for entire tenure.
In case the customer has earlier availed of a loan from any bank/finance company,
providing the track record of the loan repayment can significantly improve the credit
assessment of the customer.
Loan Approval
Our large network of sales and verification personnel ensure that your loan is
approved in the fastest time possible. ICICI have our Credit Managers stationed at all
important locations who will ensure that your loan gets approved within no time.
This process of localised approval allows us to give a fast and consistent service to
our dealers and customers.
Repayment
Repayment can be scheduled over a period of 1 year to 6 years.

Repayment can be done through post dated cheques or by depositing cash/demand
drafts at the nearest ICICI Bank Farm Equipment office on the due date.
There is a penalty for late payment of dues.
The loan can be foreclosed at any point of time; a foreclosure charge of 4% of
principal outstanding will be charged.
4. Aquaculture Finance
The stages involved in taking loan are:

 Application along with necessary supporting documents
 Documentation and processing of the application
 Sanction of the loan
 Disbursement of the loan
Rupee working capital term loan / Overdraft Facility.1Years with renewal at the end of
every year. Validity for 3 years
ICICI Bank loans for funding aquaculture projects come to you at attractive rates of
interest that are based on the prevailing market situation.
In case of Overdraft facility borrower shall pay monthly interest on or before 10th
day of next month.
In case of Working Capital term Loan bullet re-payment of principal at the end of the
year / loan tenure, with half yearly interest servicing.
there is a nominal one-time file-processing fee that needs to be paid, which is

inclusive of service tax. Processing fee is 0.5% of the loan amount sanctioned to be
collected at the time of disbursement . No prepayment and foreclosure charges would
be levied.
Within 24 hours subject to submission of complete documents and completion of

Field Investigation (FI)
Your spouse or any blood relative of yours or can be the co applicant. Blood relatives
include your father, mother, brother and son.
The facility would be secured by
 Hypothecation of the crop (Fish).

 Collateral cover to the extent of 200% of the loan amount secured by way of
first charge on Agriculture land (Pond) or residential or commercial property
or liquid collateral duly lien marked in favour of ICICI Bank Ltd, or with
combination thereof, however the security in case of leased land shall be in the
form of mortgage of residential /commercial property only.
 When the loan amount is more than Rs. 5.0 mn then 15% of the Collateral
cover shall be in the form of Residential / Commercial Property / Liquid
Collateral duly lien marked in favor of ICICI Bank Ltd.

 Personal Guarantee from a relative / friend of equal amount of the loan
exposure.
Maximum exposure per borrower will be capped at lower of following
 Max 80% of the project cost or

 Rs. 0.13 mn per acre of the water spread area or
 Rs. 16.0 mn
(Loan amount should be based on the total water spread area and not the total area of
the tank)
Balance loan transfer from any other Bank and Financial Institutions (Private Bank,
Public Sector Banks, and Cooperative Banks etc) will be allowed under the program,
provided the farmer fits in the selection criteria mentioned in program.
8% on the outstanding overdue amount

it is not mandatory for you to open an account with ICICI Bank.
At any branch that you may specify. However, you can operate the loan and
repayments from any of our branches under our Anywhere Banking facility.
5. Retail Warehouse Receipt Based Finance
Warehouse receipt based finance provides farmer/agri enterprises an opportunity

to avail loan against the produce. By offering the product ICICI Bank helps
farmers / Agri-enterprises to realize better prices and avoid distress sale. The
product is available either directly or through Warehouse Marketing Agent
(WMA), who are locally present and have prior experience in handling
commodities.
Borrower Eligibility
 Farmers
 Agri-enterprises/Processors
 Traders

Eligibility criteria for (WMA)
 Commodity intermediary/Warehouse owner/ End user of the commodity

 Minimum 2 years nativity and business continuity
 Good market reputation
 Good network with traders and farmers
Loan Amount
For farmers, maximum up to Rs. 1.0 million

For Traders/Processor/Agri enterprises, maximum up to Rs. 50.0 million
Documentation for Borrower
 Preliminary credit application form

 Standard terms and conditions
 Final credit application form
 Constitution Documents of the firm/company
Repayment
Repayment has to be done within 6 months from the date of disbursement.
Rate of Interest
ICICI offer a competitive rate of interest to our customers. This interest rate can vary
depending on the prime lending rate, the loan amount and the underlying collateral.

CHAPTER 2
REVIEW OF LITERATURE

A study and scan of the existing literature on the efficiency of Indian banks provides
that there exists various studies that analysed the efficiency of Indian commercial
banks using most popularly used parametric technique of Stochastic Frontier
Analysis (SFA) and non Parametric technique of data Envelopment Analysis.
It is usual to measure the performance of banks using financial ratios. Yeh (2016)
notes that the major demerit of this approach is its reliance on benchmark ratios.
These benchmarks could be arbitrary and may mislead an analyst. Further, Sherman,
and Gold (2015) note that financial ratios don’t capture the long-term performance,
and aggregate many aspects of performance such as operations, marketing and
financing.
Many studies have been conducted by researchers on NPAs in banking industry. The
researcher has made attempts to present a brief review of the literature available,
which are published in the form of research articles and technical papers published in
the journals, magazines and websites in the related area.
Cole et al. (2019) concluded that financial literacy programme has no effect on the
likelihood of opening a bank saving account, but do not find modest effects for
uneducated and financially illiterate households. In contrast, small subsidy payment
have a large effect on the likelihood of opening a saving account.
Deshpande (2018) attempted a case study of two commercial bank branches in

Maharashtra command area for evaluating performance of commercial banks in
financing agriculture. In this studied the non interest cost incurred by the sample
beneficiaries revealed that in almost all kinds of loans cost of records shared was the
maximum in rural branch. With regard to cost towards trips to bank, beneficiaries in
rural branch did not incur any cost becauseof proximity of bank.
The literature available in the working and performance of RRBs in India is a little
limited. The literature obtained by investigators in the form of reports of various
committees and working groups established by the Union Government, NABARD
and Reserve Bank of India, the research studies, articles of researchers, bank
officials, economists and the comments of economic analysts and news is briefly
reviewed in this part.
A number of studies have been conducted to see the functioning and performance of
regional rural bank in the country. The literature available in the working and

performance of RRBs in India is a little limited. The literature obtained by
investigators in the form of reports of various committees, commissions and working
groups established by the union Government, NABARD and Reserve Bank of India,
the research studies, articles of researchers, bank officials, economist and the
comments of economic analyst and new is briefly reviewed in this part.
Bhatia (2018) attempted to analyse the economic performance of Indian Banking

system as reflected in its output, price and profitability over the period 1950-68. The
main findings of this study are : i) the profit performance of Indian Banking System
during the period 1950-68 has been satisfactory; (ii) the structure of banking system
(represented by the number of bank offices and the deposit concentration ratio)
during the period has an insignificant effect on its performance.
Evolution of an effective institutional credit structure, which can meet the credit
needs ofthe rural economy, has been one of the basic objectives of credit policy
in India. The reservebank of India has policy of institutionalization of rural credit in
India. All India rural creditsurvey report recommended the three tier cooperative
credit system, viz. state cooperative bank , district central cooperative bank, and
primary cooperative societies, at state , district , and village level respectively.
The adoption of financial liberalization reforms has been a very laudable initiative
given the extent of financial repression that was prevalent prior to these reforms and
the stifling effects of repression on both the financial sector itself and on the economy
as a whole. The rural population in India suffers from a great deal of indebtedness
and is subject to exploitation in the credit market due to high interest rates and the
lack of convenient access to credit.
Mr.Kalian (2019) :- The paper makes an effort to first gather the major reforms
measures and policies regarding the banking industry by the govt. of India and the
Central Bank of India (Reserve Bank of India) during the last fifteen years.
Secondly, the paper will try tostudy the major impacts of those reforms upon the
banking industry.
The rapid growth of cities in the developing world has led the struggle for improved
living standards and protection of the environment. Since 1950's the Urban
Population throughout the world has more than tripled, from just over 750 million to
about 3 billion, and by 2030 some 5 billion people will live in cities. In the
developing

world the urban population is projected to double from 1.9 billion in 2000 to be just
under 4 billion by 2030 (M.L. Narasaiah - 2021:1)
From the above analysis it was concluded that total factor productivity change
(TFPCH) in performance of nationalized banks Total factor productivity change
(TFPCH) in performanceof Regional Rural Banks averaged at 1.3 percent during
2016-17 to 2021-22 The decompositionof TFPCH showed that the mean technical
progress increased at .9 percent whereas mean technical efficiency has shown a
marginal increase 0.1 percent during that period.
The rural finance is a matter of credit concernin a developing economy like India
where 70 percent of the total population depends upon agriculture for its livelihood.
Over 40 percent of the GDP in India is contributed by the rural sector. The economic
development of our country can be achieved only through the up-liftment of the
village folk that mainly consists of farmers, agricultural labourers, artisans etc.
Risk management and income recognition is the basic principle to restore and
enhance the financial Strength of the banking industry. At International level this
principle has constituted in 1974 by the Basel Committee to strengthen the
supervisory standard and risk management strategies and suggested the assets
classification and recognition norms. Reforms in the financial sector went through
two distinct phases.
Banks perform many economically beneficial functions. These functions can be

classified into primary and secondary functions. Among the primary functions of
banks are:
1) Acceptance of deposit; and

2) Granting of loans and advances
Deposit mobilization as noted by Ekezie (2017) is one of the most important
functions of a bank. Although the relationship between financial development and
economic growth has been extensively studied in the literature (see, e.g., King and
Levine, 1993; Demetriades and Hussein, 2016; Arestis and Demetriades, 2017;
Levine et al., 2020; Bell and Rousseau, 2021; Luintel et al., 2018), little is known
about how finance impacts on income inequality.

Literature review is a study involving a collection of literatures in the selected area of
research in which the scholar has limited experience. In the past, various studies
relating to the financial performance of Regional Rural banks have been conducted
by researchers Gunjan M Sanjeev (2019) conducted a study on Efficiency of Indian
public sector banks and found that the efficiency of public sector banks not increased
during the period 2013-17.
Rural banks are primarily created to play a special role in regional economic
development in the Philippines. They generally serve small country-side borrowers
and act as conduits of subsidized loans from the government and international
donors. In 1952, the government enacted the Rural Banking Act and embarked on a
program to enable rural banks to effectively compete with the larger universal and
commercial banks and to increase investments in the regions.
Microfinance is the provision of financial service to the economically active poor

who are hitherto un-served by the mainstream financial service provider. Microcredit
is commonly defined in terms of loan amount as a percentage of average per capita
income. In the context of Nigeria, with a per capita GDP of N112,800 (about $752)
in 2018, loans up to N112,000 (around
$750) will be regarded as micro loans.
RRBs though operate with a rural focus are primarily scheduled commercial banks
with a commercial orientation. Beginning with the seminal contribution of Haslem
(1968), the literature probing into factors influencing performance of banks
recognises two broad sets of factors, i.e., internal factors and factors external to the
bank.
The equation system is fitted using the 3SLS procedure. The results of the estimation
process are contained in Table 5. As observed from the Table, the first hypothesis is
borne out by evidence since the coefficient on the expense ratio is negative and
statistically significant in the RoA equation
Government of India has taken various steps for alleviating poverty since
Independence. However, in spite of the various efforts, almost 27 percent1 of total
population in India still continues to be below the poverty line. It is identified that
4
most of the poor are in the rural areas. Further, along with this poverty scenario, no
adequate employment has been generated in the labour market in India.
Financial sector reform has been a major component of the structural adjustments
being implemented in India since 2021. A key focus of these efforts has been on
reforming the Regional Rural Banks (KGB)—India’s state-owned development
finance vehicles charged with serving the rural poor, especially micro entrepreneurs,
in the agricultural and nonfarm sectors.
The institution of Regional Rural Banks (KGB) was created to meet the excess
demandfor institutional credit in the rural areas, particularly among the economically
and socially marginalized sections. 4Although the cooperative banks and the
commercial banks had reasonable records in terms of geographical coverage and
disbursement of credit, in terms of population groups the cooperative banks were
dominated by the rural rich,
The state of Maharashtra occupies the most prominent position in the economic and
banking map of India. It is the most economically advanced state in India. It
contributes thelargest share to national income. It is most urbanized and industrial
state in the country. It is also the birthplace of co-operative credit movement in the
country and continues to have strong cooperative credit institutions, both at urban
and rural centres.
You work for a local economic development agency for a living. Or you look into the
workings of the regional economies across your state for a university business
research centre. Or you are a graduate student wanting to get a handle on the how-to
of regional economic analysis. If your aim is to understand, explain or have some
positive impact on a regionaleconomy, you need to find, and make sense of, pertinent
socioeconomic data.
It could be appropriate to review some of the works done by the former researchers in
the field of Karnataka Vikas Grameena Bank n Agriculture development by
beneficiary farmers to prepare a suitable background for the present study. It helps to
acquire a broad general background in the given field. It provides basis for theoretical
framework and insight into methods and procedures of research. Since very few
related studies are available on profile borrowers of Regional Rural Banks
4
This paper describes the changes caused by the global financial crisis in the strategic
and operational choices made by local banks embedded in territories where Italian
technological districts are located, which can be described as cases in which
industrial policies have successfully promoted innovation.
Bahia and Nantel, (2020) developed Bank Service Quality (BSQ) scale to measure
the quality perceptions in banking activities. Shafie and Azmi (2018), their working
paper 001 stated that ARTER’s six dimensions (Compliance, Assurance, Reliability,
Tangibles, Empathy, and Responsiveness) were conceptualized as a proposed
framework for measuring quality of services in Islamic banks.
The overall growth of an economy is dependent to a great extent on the efficiency

and soundness of its banking system. A sound banking system serves as an important
medium for pushing economic growth by mobilisation of small savings of
unproductive domestic sector and putting them to the productive use. Given the
socioeconomic implications of the banking sector the analyses of relative efficiency
of banks has gained popularity among people from banking sector, policy makers,
researchers and academicians and other interested parties.
Pragathi Gramin Bank has been serving the rural population since past 27 years in
Deodurga Taluk, Raichur district. Over the years it has evolved many saving
products keeping in view the customers preferences. It has used campaigns, special
deposit mobilization fortnight, farmers clubs etc as saving mobilization strategies.
Mainly bank officials are involved in such mobilization campaigns.
This section provides the overview of previous studies reviewed related to the
determinants of the profitability of banks. Some studies were country specific and
few of them considered panel of countries for reviewing the determinants of
profitability. Overall these studies propose that the determinants of profitability for
bank can be divided into two groups; internal and external factors.
This paper explores the impact of various forms and levels of ICT on the
performance of rural cooperative banks using recent survey data from India. Findings
from the research suggest that modern information technology serves to enhance both
the efficiency and profitability of the rural credit institutions. Efficiency was
significantly enhanced by the usage of moderate technology at the lower
organisational level, e.g.
4
stand-alone computers at the branch level, mobile phone usage at PACS (Primary
Agricultural Credit Society) and field level.
In this study we discussed issues and challenges encountered in a computerization

project being carried out by the ARB Apex Bank to connect rural and community
banks in Ghana. The
ARB Apex Bank embarked on the project to make the benefits of computer and
networking technologies available to member rural banks. The study selected some
rural banks engaged inthe first phase of the project and sampled fifty respondents for
questionnaires..
The rural environment in Ghana as in many African countries is characterized by

lack of basic amenities and infrastructural facilities. Primary production in the form
of agriculture and fishing dominate the rural economy. Farm operations and fishing
expeditions are carried out with the help of simple tools, local varieties of crops and
primitive fishing equipment.
It is the study of various literatures on the level of information technology, and

customer satisfaction in the banking sector. It has also emphasis the way in which a
customer has access toa bank’s services and products, mainly through the use of
automated processes such as computerized banking (Cash and James T, 2018)
Indian Economy : As per the RBI report, the Indian economy continued to record
strong growth during 2017-18, albett with some moderation. With adverse effect of
global recessions on Indian industry and service sector, the Reak GDP growth rate
of India, has declined from 9.6%in 2016-2017 to 9% in 2017-18. But the overall
growth of real GDP rate of the Indian economy during 2017-18 was noteworthy in
the global context.
In the area of payments systems there have been significant advancements of

technologyon the customer transactions India is one of the country that has
effectively tackled huge volumes of paper instruments in cost effective manner. The
magnetic ink Character Recognition (MICR) cheque clearing system, cheque
transaction system (CTS) is another innovative solution that has been developed to
enhance the efficiency of paper based clearing system.
4
An retrospect of the events clearly indicates that the Indian banking sector has come
for away from the days of nationalization. The Narasimham Committee laid the
foundation for the reformation of the Indian banking sector. Constituted in 1991, the
Committee submitted two reports, in 2012 and 2018, which laid significant trust on
enhancing the efficiency and viability of the Banking sector.
4
CHAPTER 3
RESEARCH METHODOLOGY
4
TITLE OF THE STUDY
The title of the study is “A Study on Rural finance provided by ICICI bank”
DURATION OF THE STUDY
The duratiion of the research was 45 Days.
3.1 OBJECTIVE OF THE STUDY
 To do a SWOT analysis of ICICI.
 To analyse the customer behaviour before taking loans from ICICI bank.
 To investigate the customer awareness level of ICICI banks in rural areas.
3.2 RESEARCH PLAN

RESEARCH is a scientific and systematic search for pertinent information on a
specific topic. It is also said to be the pursuit of truth with the help of study,
observation, comparison and experiment. research methodology is a way to
systematically solve the research problem.
Research design: -
A research design is a framework or blueprint for conducting the marketing research
project. It details the procedures necessary for obtaining the required information, and
its purpose is to design a study that will test the hypotheses of interest, determine
possible answers to the research questions, and provide the information needed for
decision making.
Research can classify in one of three categories:
 Exploratory research
 Descriptive research
 Causal research
Exploratory research has the goal of formulating problems more precisely,
clarifying concepts, gathering explanations, gaining insight, eliminating impractical
ideas, and forming hypotheses. Exploratory research can be performed using a
literature search, surveying certain people about their experiences, focus groups, and
4
case studies. When
5
surveying people, exploratory research studies would not try to acquire a
representative sample, but rather, seek to interview those who are knowledgeable and
who might be able to provide insight concerning the relationship among variables.
Case studies can include contrasting situations or benchmarking against an
organization known for its excellence. Exploratory research may develop hypotheses,
but it does not seek to test them. Exploratory research is characterized by its
flexibility.
Descriptive research is more rigid than exploratory research and seeks to describe
users of a product, determine the proportion of the population that uses a product, or
predict future demand for a product. As opposed to exploratory research, descriptive
research should define questions, people surveyed, and the method of analysis prior to
beginning data collection. In other words, the who, what, where, when, why, and how
aspects of the research should be defined. Such preparation allows one the opportunity
to make any required changes before the costly process of data collection has begun.
3.3 DATA COLLECTION

 PRIMARY DATA – Data is collected primarily through personal
contact, meeting, interview and questionnaire with the concerned authority of
the organization and respondents’.
 SECONDARY DATA – Data are collected through secondary

modes such as various published data, reports, related books and
websites.
3.4 SAMPLE PLAN

Sample size: -
Sampling is simply the process of learning about population on the basis of learning
about population on the basis of a sample drawn from it. The primary objective of the
sampling survey is to obtain accurate and reliable information about universe with
minimum cost, time and energy and to set out the limits of accuracy of such estimates.
Sample Size = 100 people is selected from Fatehpur
This sample contains a mix type of customer (Servicemen, student and businessmen)
so as to remove any type be biased results. Research for the Importance of the Brand
5
image of the company’s which is kept in mind by customers while buying any
product. It was very difficult to get the actual feedback from the customer.
5
CHAPTER 4
DATA ANALYSIS
5
SWOT ANALYSIS
A. STRENGTHS
 ICICI Bank has excellent brand awareness and high quality image.
 ICICI Bank has excellent market coverage all over the world and
covers a lot on the globe.
 The company stands No. 1 in infrastructure.
 Advanced Technology
 Providing innovative products & Services
 Vast pool of skilled manpower
B. WEAKNESS
 ICICI Bank's product line is not clearly positioned compared with
HDFC and IDBI
 It needs a unique selling proposition.
 Too many competitors
 High cost of funds
 Low international credit ratings and Bureaucratic procedures
C. OPPORTUNITIES
 Consumers are showing increased interest in some good schemes of
ICICI Bank.
5
 Company develops a device for measuring illumination level.
 Liberalization of the economy
 Growing banking sector
 Use of foreign earnings for investment in foreign activities
 ICICI uses technology to provide value-added service to its

customers. For ICICI; technology is an integral part of their
business
D. THREATS
 Expansion always brings high risk with itself so that is to be checked
and expected returns are not guaranteed.
 Major prolonged economic depression in financial expansion in

rural areas.
 Domestic political dominance
 ICICI bank has a tough competition to be faced by various financial

institutions Among its top competitors are HDFC Bank, Bank of
Baroda, Bank of India Oriental Bank of Commerce etc.,
 Competitors superiority in services and operations
5
Table 4.1 Age profile of the respondents
Age Group Respondent

25-35 21%
35-45 27%
45-55 32%
55 and above 20%
25-35
AGE PROFILE
35-45
45-55
20% 21% 55& above
27%,
32%
Figure: 4.1 Age profile of respondents
Source: The Author
Interpretation: -
No of people in a sample is 100 out of them 21% are between age of 25-35 , 27%
are between 35-45 , 32% are between 45-55 and rest are of above age of 55.
5
Table 4.2 Profession of the respondents
Profession Respondent
Farming 34%
Govt/Public 21%
Dairy 25%
Poultry Farming 12%
Others 8%
8%
12% 34%
FARMING
GOVT/PUBLIC DAIRY
POULTRY FARMING
25% OTHERS
21%
Figure 4.2 Profession of the respondents
Source: The Author
Interpretation:-
Regarding the profession 34% people are doing the farming work. And after them
25% & 12% people are doing the business of dairy and poultry farming respectively.
21% people are Govt employees and rest 8% belong to other professions.
5
Table 4.3. Income level (per annum)
Income Level No. of person in percentage

10000-50000 12%
50000-100000 23%
100000-200000 24%
200000 & above 41%
12%
41%
23%
10000-50000
50000-100000
100000-200000
24% 200000&above
Figure 4.3 : income level (per annum)
Source: The Author
Interpretation:-
The above graph is showing the income level of people the highest no of population
41% are earning more than 200000rs per annum.
5
Table 4.4: Lenders from where people take loan.
Banks No. of Person taking loan from various bank
Pvt. Banks 18%
Govt. Banks 26%
Gramine Banks 24%
Money Lenders 32%
18%
32%
26% PVT.BANKS
GOVT BANKS GRAMINE BANK
MONEY LENDERS
24%
Figure 4.4 Lenders from where respondent take loan
Source: The Author
Interpretation:-
After the independence still the highest no of population (32%) is taking loan from
money lenders. After them highest no loan are taken 26% from Govt banks. After
them Gramine banks come.
5
Table 4.5: Purpose of borrowing a loan
Purpose of Loan Respondents

Tractor 37%
Dairy Equipments 16%
Seeds 24%
Others 23%
23%
37%
TRACTOR
DAIRY EQUIPMENTS SEEDS
OTHERS
24%
16%
Figure 4.5: Purpose of borrowing a loan
Source: The Author
Interpretation:-
Purpose of loan is still the tractor which is taking the highest place 37%. Seeds and
dairy equipment comes after them at 24% & 16% respectively. And others reasons
stand on 23% which includes home, motorcycle, jeeps, mini vans etc.
6
Table 4.6 : People willing to take loan from Pvt. Banks.
Response People willing to take loan from Pvt.

Banks
Yes 67%
No 33%
33%
YES
67% NO
Figure 4.6: People willing to take loan from Pvt. Banks.
Source: The Author
Interpretation:-
67% people do still not believe in private banks and they are not willing to take loan
from them.
6
Table 4.7: Amount of loan people want to borrow.
No. of respondent
5000-25000 7%
25000-50000 17%
50000-10000 29%
10000-150000 27%
Above 150000 20%
5000-25000
7%
Above 150000
20%
25000-50000
17%
5000-25000
25000-50000
100000-150000 50000-100000
27% 100000-150000
50000-100000
Above 150000
29%
Figure 4.7: Amount of loan people want to borrow.
Source: The Author
Interpretation:-
The amount of loan people took in rural areais very scattered.
6
Table 4.8 Time interval respondents have taken loan
Time Interval No. of Respondent

1-2 years 14%
2-3 years 23%
3-5 years 31%
More than 5 years 32%
1-2YEARS, 14%
MORE THAN
5YEARS, 32%
1-2YEARS
2-3 YEARS, 23%
2-3YEARS
3-5YEARS
3-5YEARS, 31% MORE THAN 5YEARS
Figure 4.8 : Time interval for that respondents have taken loan.
Source: The Author
Interpretation:-
The highest no of people 32% are take loan for more than 5 years after time interval
for which people take loan is 3-5 years. That is 31% of respondents. Rest are of 23%
and 14% are took loan for 2-3 and 1-2 years respectively.
6
Table 4.9: People look into, before taking loan from a bank
People Look Into No. of Respondent
Brand 34%
Service 25%
Interest Rate 21%
Others 20%
Service 25%
Brand 34%
Service Interest Rate Otheres Brand
Otheres 20%
Interest Rate 21%
Figure 4.9: People look into, before taking loan from a bank
Source: The author
Interpretation: -
Before taking loan people 34% people look in to brand and 25% look for service.21%
looks for interest rate and rest people look into other features.
6
Table 4.10: Banks from which ever loan was taken
BANKS No. of Respondent
SBI 37%
Rural Co-operative Banks 18%
Bank of Baroda 24%
Bandhan Bank 11%
HDFC 4%
Others 6%
Series1, HDFC, 4%, 4%

Series1,
Series1, Bandhan bank 11%, 11%
OTHERS, 6%,
6%
Series1, SBI, 37%,
37%
SBI
Series1, Bank of
RURAL CO-OPERATIVE
Baroda
BANKS
, 24%, 24%
Series1, RURAL
CO-OPERATIVE BANKS, 18%, 18%
RAJASTHAN BANK
HDFC
Series1, , 0, 0%
OTHERS
Figure 4.10: banks from which ever loan was taken
Interpretation: -
People are still preferring the SBI as their main bank to take loan.
6
Table 4.11: Awareness about ICICI Rural Loans.
No. of Respondent
Yes 17%
No 83%
Series1, YES,
17%, 17%
YES
Series1, NO, NO
83%, 83%
Figure 4.11 : knowlage about icici rural loans
Interpretation:-
83% people still not aware about ICICI rural loans.
6
 If yes, then how
Advertisement 6%
Friends 20%
Others 74%
Chart Title
Axis
Axis Title
Interpretation:-
People who are aware about ICICI rural loans out of them 21% will get
knowledge from friends.
6
CHAPTTER 5
FINDINGS, SUGGESTION,
CONCLUSION, IMPLICATIONS
AND LIMITATIONS
6
Findings
1. No of people in a sample is 100 out of them 21% are between age of 25-35, 27%
are between 35-45 , 32% are between 45-55 and rest are of above age of 55.
2. Regarding the profession 34% people are doing the farming work. And after them
25% & 12% people are doing the business of dairy and poultry farming
respectively. 21% people are Govt employees and rest 8% belong to other
professions.
3. The above graph is showing the income level of people the highest no of
population 41% are earning more than 200000rs per annum.
4. After the independence still the highest no of population (32%) is taking loan from
money lenders. After them highest no loan are taken 26% from Govt banks. After
them Gramine banks come.
5. Purpose of loan is still the tractor which is taking the highest place 37%. Seeds
and dairy equipment comes after them at 24% & 16% respectively. And others
reasons stand on 23% which includes home, motorcycle, jeeps, mini vans etc.
6. 67% people do still not believe in private banks and they are not willing to take
loan from them.
7. The highest No. of people 32% are take loan for more than 5 years. After time
interval for which people took loan is 3-5 years. That is 31% of respondents. Rest
are of 23% and 14% are took loan for 2-3 and 1-2 years respectively.
8. Before taking loan people 34% people look in to brand and 25% look for
service.21% looks for interest rate and rest people look into other features.
9. People are still preferring the SBI as there main bank to take loan.
10. 83% people still not aware about ICICI rural loans.
11. People who are aware about ICICI rural loans out of them 21% will get
knowledge from friends.
12. Lack of advertisement is main causes why people are not aware about ICIC loans.
6
Conclusion
1. ICICI Bank and its Group Companies to be the providers of deposit taking and
insurance services and therefore warehouse all the attendant risks. Since as on June
30, 2012 its assets are USD 70 billion and its net worth exceeds USD 5 billion and its
rating is AAA it is in a good position to absorb these risks. As on date, ICICI Bank
has built a portfolio exceeding Rs.17, 000 crore in rural finance of which Rs.2, 800
crore is to low-income families and has a customer base exceeding 2.8 million clients.
2. Develop a relationship with a network of local institutions (both urban and rural),
which could be cooperative banks, producer cooperatives, non-bank finance
companies and not-for-profit civil society organizations to actually distribute these
services. A combination of these partner institutions, rural hub branches at a cluster
level and agents (such as tractor dealers) appointed by the bank represent the core of
its ‘No White Spaces’ strategy that aims to cover 200 districts by 2012. Under this
strategy, the bank plans to have at least one touch point (collectively referred to as
ICICI Bank Grameen Kendras which may belong to ICICI Bank or to partners) every
3-5 kilometers in rural and semi-urban areas. If the model succeeds this implies that
the number of ICICI Bank Grameen Kendras capable of offering a reasonably
complete suite of financial services would exceed 50,000 (or 1 for every 11 to 13
villages) by March 2012 and the customer base could exceed 28 million by 2012.
3. For the lending business, use the "partnership model" to build incentive
compatibility with the local institution that is delivering this specific financial service.
This design draws on the separation of functions discussion in the preceding section.
4. For deposit taking work with a variety of local institutions to provide these services
under the Business Correspondent model. Business Correspondents are agents
identified by the bank to provide basic banking services such as opening bank
accounts, collecting savings deposits offering insurance products in rural areas. ICICI
Bank takes full responsibility for its correspondent’s business conduct. The bank has
already launched this service in Orissa and Andhra Pradesh.
5. In order to facilitate better price discovery and price risk management for farmers,
ICICI Bank co-promoted the National Commodity and Derivates Exchange (NCDEX)
jointly with National Bank for Agriculture and Rural Development (NABARD), the
National Stock Exchange (NSE) and Life Insurance Corporation (LIC). NCDEX along
7
with its affiliate National Commodities Management Services Limited (NCMSL) is
attempting to improve access to price derivatives for farmers, facilitate commodity
based finance through banks, provide weather stations and improve the warehousing
infrastructure.
6. For its work in product development, ICICI Bank has combined its expertise in
financial engineering with the insights generated by its partners and allied research
institutions. To date, ICICI Bank and its group companies have designed and are
taking to scale products including the following:
7. It is ICICI Bank’s belief that in order to improve efficiencies in financial

intermediation, especially in the context of small unsecured loans, the role of
technology is crucial. ICICI Bank’s initiatives in technology may be broadly thought
of in two categories: 1. Front-end technology investments – this includes issuance of
smart cards with unique identifiers to its clients that help the client track financial
services usage data on a real-time basis as well as sharing of credit information across
ICICI Bank’s network. 2. Back-end technology investments – this relates to
investment in creating better core banking systems among its partner institutions.
8. ICICI Bank is conscious that working in rural India and with poor households is
fairly uncharted territory. It has tried to base its growth strategies on systematic results
of what works at household and local economy levels. In order to catalyze high-
quality work in this area, it works closely with research centres that systematically
research issues related to access to finance. These centres are housed within the
Institute for Financial Management and Research (IFMR) and they seek to provide
thought leadership to all institutions working in this field.
7
Suggestions
Firstly I could observe that the general level of awareness among the people regarding
ICICI RURAL FINANCE brand is low, therefore the brand should focus on
advertising both at the central as well as local Level.
We know that the products and services offered by the company are the best but more
or less similar are offered by other company as well, so promotional campaigns are
must in this era of stringent competition.
We know that in this world of intense competition everyone is trying to prove itself
best its respective field therefore we can conclude that there is always an edge of
improvement and hence the brand should work on that. Establish and coordinate
business relation with big corporate houses across the country .ICICI can improve
upon its efficiency by not changing its staff frequently. By doing this company can
continue to create, maintain and grow strong relationship with its existing customers.
Idea behind this is that staff which is already working for company is well acquainted
with the nature and wants of the existing customers.
 The rural finance concept must be specifically promoted. The general

perception of rural finance has to change in India before progress is made in
this field. People should not be afraid to invest money in insurance and must
use it as an effective tool for tax planning and long term savings.
 ICICI RURAL FINANCE could tap the rural markets with cheaper products
and smaller policy terms. There are individuals who are willing to pay small
amounts as interest rates but the plans do not accept interest below a certain
amount. This was a general conclusion drawn during prospecting clients.
 ICICI should chalk out some programs to create general awareness regarding
its presence and various services of the company.
 Today is the era of competition. In order to increase the company network (In
terms of clients and business volumes) an aggressive approach is required.
7
The Bank should recruit more number of marketing personnel so that they can
cover the whole of the city and nearest villages of Fatehpur. Personal marketing
can be one of the methods of modes of taking people into confidence.
 ICICI should try to make its promotional activities more effectively.
 It can use industrial magazine media as an advertising tool for approaching is

market segment.
 Try to reduce hidden charges so as to satisfy the customers more effectively.
 It should regularly conduct market research and surveys for knowing
customers better and for facing threat from competitors.
IMPLICATIONS OF STUDY
The implication of the project during the research and study will be focused on the
following parameters:
 To know consume preference regarding Rural Finance

 To know what features and services attract the customers
 Effect of brand image (ICICI)in buying behavior
 Impact of advertisement in buying behavior
 Impact of celebrity endorsement in buying behavior
 Effect of family &friends in buying behavior (Focus group)
LIMITATION OF STUDY
• Study is limited to only 100 people.
• Level of literacy among the respondents is low.
• Study is limited to Fatehpur.
7
BIBLIOGRAPHY
Books:
 Barley, Fundamental of investment, pearson third edition
 Haugen, Morden investment theory, pearson sixth edition
 Mathew,M J, Fundamental of insurance, Tmh second edition
Web sites:
 www.cgap.org
 www.icici.com
 www.rbi.org
 www.indiacore.com
 www.icicibank.com
Magazines:
 Business Today
 Business India
 Economic Times
 Material provided by the company
 Business World
Search Engines:
 www.google.com
 www.yahoo.com
7
References
1. Basu, P., & Srivastava, P. (2015). Scaling up of micro-finance of India’s rural poor.
National Council of Applied EconomicResearch Paper.
https://doi.org/10.1596/1813- 9450-3646
2. Basu, P., & Srivastava, P. (2015). Exploring possibilities: Microfinance and rural
credit access for the poor in India. Economic and Political Weekly, 40(17), 1747, 1749,
1756.
3. Basu, P. (2016). Improving access to finance for India’s rural poor. World
Magazine Publications. https://doi. org/10.1596/978-0-8213-6146-7
4. Chakrabarty, T. K. (2013). Rural Income: Some evidence of effect of rural credit
during last three decades. Reserve Bank of India occasional papers.
5. Copestake, J. (2020). Microfinance and development finance in India: Research
implication. Centre Emile Bernheim: Research Insitute in Management Studies.
6. Devaraja, T. S. (2021). Rural credit in India - An overview of history and
perspectives. Working paper supported by a grant from the University Grants
Commission of India.
7. Hess, U. (2022). Innovative financial services for rural India
- Monsoon-indexed lending and insurance for smallhold- ers. Agriculture and
Rural Development Department, The World Bank.
8. Hrishikesh, T. B., & Reddy, G. R. (2014). Retrospects andprospects of agricultural
finance by commercial banks in Kurnool District of Andhra Pradesh. Journal of
Economicsand Finance, 4(1). https://doi.org/10.9790/5933-0410110
9. Jain, S., & Yadav, S. (2015). Rural credit India: A growth accelerator. Kaav
International Journal of Economics, Commerce & Business Management.
10. Jones, H., Williams, M., & Thorat, Y. (2003). Rural financialinstitutes and agents
in India: A historical and contempo- rary comparative analysis. International
Conference on Rural Finance Research.
11. Karmakar, K. G. (2018). Trends in rural finance. Indian Journal of Agricultural
Economics, 63(1).
7
APPENDIX
Questionnaire
Personal Details:
Name:
Address
Contact No. Profile of respondent:

 Student
 Housewife
 Working Professional
 Business
 Self – Employed
 Government employee
1) Which Age group you Belongs:-
(a)18-24 (b) 25-35 (c)36-45 (d)46-57 (e) 58 & above
2) Which Profession you Blongs
(a) Farming (b) Govt/ Public (c) Dairy (d) Poultry Farm e) Other
3) what is your income level
(a) 10000-50000 (b) 50000-100000
(c) 100000-200000 (d) 200000 and above
4) what is your preference to take loan?
(a) Pvt. Banks (b) Govt. Bank (c) Gramine Banks
(d) Money Lenders
7
5) what is the purpose to take loan?
(a) Tractor (b) Dairy equipment (c) Seeds
(d) others
6. Are people willing to take loan from Pvt. Banks?
(a) Yes(b) No
7. How much loan do you want to take?
(a) 5000-25000 (b) 25000-50000 (c) 50000-100000
(d) 100000-150000 (e) 150000 and above
8. For what time interval you have taken loan?
(a) 1- 2 years (b) 2-3 years (c) 3-5 years
(d) More than 5 year
9. What do you look into, Before taking loan from a particular bank?
(a) Brands (b) Service (c) Interest Ratio
(d) Others
10. Have you ever taken loan from any of the following companies?
(a) SBI(b) Rural Co-operative Banks (c) Bank of baroda
(d) Bandhan Bank(e) HDFC (f) others
11. Do you know about ICICI Rural Loans?
(a) Yes (b) No

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A

Summer Internship Project

Submitted for partial fulfillment of requirement for the

Supervision By: Submitted By:

Chandigarh University, Mohali

I assert that the statements made and conclusions drawn are an

(Signature of the Candidate)

ii) Has duly been completed,

iv) Is up to the desired standard for the purpose of which is submitted.

(Signature of the Supervisor)

To the best of my knowledge the report

Embodies the work of the candidate her/herself,

(Signature of the Supervisor)

I am especially indebted to my Project Guide, Ms. MEDHA GUPTA, without whose

The importance of insurance in modern economies is unquestioned and

Chapter Title Page No.

4 Data Analysis ` 52-66

Table no. Title Page no.

4.1 Age profile of the respondents 55

4.2 Profession of the respondents 56

4.3 Income level (per annum) 57

4.4 Lenders from where people take loan. 58

4.5 Purpose of borrowing a loan 59

4.6 People willing to take loan from Pvt. Banks. 60

4.7 Amount of loan people want to borrow. 59

4.8 Time interval respondents have taken loan 60

4.9 People look into, before taking loan from a bank 63

4.10 Banks from which ever loan was taken 64

4.11 Awareness about ICICI Rural Loans 65

Priyanka praharaj, BBA-V SEM, CHANDIGARH UNIVERSITY, 2021- 1

Figure Title Page no.

4.1 Age profile of the respondents 55

4.2 Profession of the respondents 56

4.3 Income level (per annum) 57

4.4 Lenders from where people take loan. 58

4.5 Purpose of borrowing a loan 59

4.6 People willing to take loan from Pvt. Banks. 60

4.7 Amount of loan people want to borrow. 61

4.8 Time interval respondents have taken loan 62

4.9 People look into, before taking loan from a bank 63

4.10 Banks from which ever loan was taken 64

4.11 Awareness about ICICI Rural Loans 65

Priyanka praharaj, BBA-V SEM, CHANDIGARH UNIVERSITY, 2021- 2

Priyanka praharaj, BBA-V SEM, CHANDIGARH UNIVERSITY, 2021- 3

In Section 5(b) of the Banking Regulations Act, 1949. “Banking” is defined as

Development of Banking in India

Priyanka praharaj, BBA-V SEM, CHANDIGARH UNIVERSITY, 2021- 4

Priyanka praharaj, BBA-V SEM, CHANDIGARH UNIVERSITY, 2021- 5

tructure of scheduled Commercial Banks

Public Sector Banks Private

Association SBI&Associated Bank Private

DEVELOPMENT OF PRIVATE SECTOR BANK

Priyanka praharaj, BBA-V SEM, CHANDIGARH UNIVERSITY, 2021- 6

REGIONAL RURAL BANKS

 Providing credit for agricultural purposes to small entrepreneurs engaged

 To cater the needs weaker sections of the community.

Priyanka praharaj, BBA-V SEM, CHANDIGARH UNIVERSITY, 2021- 7

Priyanka praharaj, BBA-V SEM, CHANDIGARH UNIVERSITY, 2021- 8

Priyanka praharaj, BBA-V SEM, CHANDIGARH UNIVERSITY, 2021- 9

Commercial banks primarily lend to businesses (corporate banking)

Retail banks primarily lend to individuals. An example of a retail bank is Washington

Lending; it owns a merchant bank (Citicorp Merchant Bank Limited) and an

Banks are prone to crisis