Professional Documents
Culture Documents
Iciciresearchreport-2011 19172926
A PROJECT REPORT
ON
FOR
Branch Manager
OF
SUBMITTED BY
DURG - 491001
2019-2021
CERTIFICATE
from
23/05/2020 to 06/07/2020
in
ICICI BANK
Branch Manager
The conduct of the student was found to be good during this duration.
ICICI Bank
DECLARATION
ACKNOWLEDGEMENT
This report has been prepared for the internship that has been done in the ICICI Bank, in order to
study the practical aspect of the course and implementation of the theory in the real field with the
purpose of fulfilling the requirements of the course of PGDM.
I take the opportunity to express my gratitude to all of them who in some or the other way helped
me to accomplish the challenging project in ICICI Bank. No amount of written expression is
sufficient to show my deepest sense of gratitude to them.
I thank my institute which has given me this opportunity to showcase my skills. I also thank my
nearer and dearer ones without support of whom; this project would not have been possible.
I would like to thank Mr. Sounak Kundu Sir for giving this opportunity to be a part of their esteem
organization and enhance my knowledge by doing summer training. I would also like to thank my
mentor, Mr. Prabhat Ranjan Sir for guiding us throughout the internship and handling all our
doubts and motivating us. Last but not the least I am grateful to all the other interns for their kind
cooperation and help during the course of my project.
Regards
PREFACE
The successful completion of this project was a unique experience for me because by interacting
with various people even in this pandemic situation and knowing about their experiences on ICICI
digital channels, a better knowledge about banking and iMobile app was achieved. The research
also helped me to know what people – whether an ICICI customer or not think about the bank by
getting their feedback on various products and offerings as well as the digital channels.
The research project also gave me an opportunity to understand the micromarket strategy and its
benefits and study my ecosystem while identifying the needs of friends, relatives and others in the
nearby catchment.
The experience which was gained by doing this project was essential at this turning point of my
career. The research provided an opportunity to showcase my skills and knowledge as well while
performing various tasks.
TABLE OF CONTENTS
Limitations 83-84
Conclusion 85-86
Recommendations 87-88
References 89-91
EXECUTIVE SUMMARY
EXECUTIVE SUMMARY
The study was under taken while doing summer internship in ICICI Bank. The study mainly
analyzes the general view of customers on the available digital offerings of the bank. The project
also focuses in driving education and adoption of ICICI digital banki ng channel amongst our
respective ecosystem.
As part of the project, we were responsible for identifying the banking needs of our own
ecosystem, i.e. friends, family, or people in the nearby catchment.
While working from home, we need to study and prepare the micromarket map of our area with
details of various customer segments, presence of other private and public banks and business
opportunities available for ICICI bank in our area along with providing recommendation on
business strategy for the bank in our catchment.
Primary Data
Secondary Data
The primary data was collected through telephonic calls with general public while the secondary
data was collected through internet.
ABOUT ORGANIZATION
ICICI Bank Limited is an Indian multinational banking and financial services company with its
registered office in Vadodara, Gujarat and corporate office in Mumbai, Maharashtra. It offers a
wide range of banking products and financial services for corporate and retail customers through a
variety of delivery channels and specialised subsidiaries in the areas of investment banking, life,
non-life insurance, venture capital and asset management. The bank has a network of 5275
branches and 15589 ATMs across India and has a presence in 17 countries.
ICICI Bank is one of the Big Four banks of India. The bank has subsidiaries in the United Kingdom
and Canada; branches in United States, Singapore, Bahrain, Hong Kong, Qatar, Oman, Dubai
International Finance Centre, China and South Africa; and representative offices in United Arab
Emirates, Bangladesh, Malaysia and Indonesia. The company9s UK subsidiary has also
established branches in Belgium and Germany.
History:
ICICI Bank was established by the Industrial Credit and Investment Corporation of
India (ICICI), an Indian financial institution, as a wholly-owned subsidiary in 1994 in
Vadodara. The parent company was formed in 1955 as a joint-venture of the World Bank,
India9s public-sector banks and public-sector insurance companies to provide project
financing to Indian industry. The bank was founded as the Industrial Credit and Investment
Corporation of India Bank, before it changed its name to ICICI Bank. The parent company
was later merged with the bank known as Reverse Merger, which does not happen often.
ICICI9s shareholding in ICICI Bank was reduced to 46 percent, through a public offering of
shares in India in 1998. ICICI Bank acquired the Bank of Madura Limited in an all-stock
deal in 2001.
In the 1990s, ICICI transformed its business from a development financial institution
offering only project finance to a diversified financial services group, offering a wide variety
of products and services, both directly and through a number of subsidiaries. In 1999, ICICI
became the first Indian company and the first bank or a financial institution from non-Japan
Asia to be listed on the NYSE.
In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger of
ICICI and two of its wholly-owned retail finance subsidiaries, ICICI Personal Financial
Services Limited and ICICI Capital Services Limited, with ICICI Bank. The merger was
approved by the Reserve Bank of India in April 2002.
In 2008, following the 2008 financial crisis, customers rushed to ICICI ATMs and branches
in some locations due to rumours of an adverse financial position of ICICI bank. The
Reserve Bank of India issued a clarification on the financial strength of ICICI Bank to dispel
the rumours.
In March 2020, the board of ICICI Bank Ltd. approved an investment of Rs. 1000 crore in
Yes Bank Ltd. This investment resulted in ICICI Bank Limited holding in excess of a five
percent shareholding in Yes Bank.
Acquisitions:
1996: ICICI Ltd.; A diversified financial institution with headquarters in Mumbai.
1997: ITC Classic Finance; incorporated in 1986, ITC Classic was a non-bank
financial firm that engaged in hire, purchase and leasing operations. At the time of
being acquired, ITC Classic had eight offices, 26 outlets and 700 brokers.
2007: Sangli Bank; Sangli Bank was a private sector unlisted bank, founded in 1916,
and 30% owned by the Bahte family. Its headquarters were in Sangli in Maharashtra,
and it had 198 branches. It had 158 in Maharashtra and 31 in Karnataka, and others
in Gujarat, Andhra Pradesh, Tamil Nadu, Goa, and Delhi. Its branches were
relatively evenly split between metropolitan areas and rural or semi-urban areas.
2010: The Bank of Rajasthan (BOR) was acquired by the ICICI bank for Rs. 30
billion. RBI was critical of BOR9s promoters not reducing their holdings in the
company. BOR has since been merged with ICICI Bank.
The National Stock Exchange was promoted by India9s leading financial institutions
(including ICICI Ltd.) in 1992 on behalf of the Government of India with the objective
of establishing a nationwide trading facility for equities, debt instruments by ensuring
equal access to investors all over the country through an appropriate communication
network.
In 1987, ICICI Ltd along with UTI set up CRISIL as India9s first professional credit
rating agency.
ICICI Bank facilitated the setting up of <FINO Cross Link to Case Link Study= in 2006,
as a company that would provide technology solutions and services to reach the
undeserved and under banked population of the country. Using technologies like
smart cards, biometrics and a basket of support services, FINO enables financial
institutions to conceptualise, develop and operationalise projects to support sector
initiatives in microfinance and livelihoods.
Following the enactment of the Securitisation Act in 2002, ICICI Bank, together with
other institutions, set up Asset Reconstruction Company India Limited (ARCIL) in
2003. ARCIL was established to acquire non-performing assets (NPAs) from
financial institutions and banks with a view to enhance the management of these
assets and help in the maximisation of recovery.
ICICI Bank has helped in setting up Credit Information Bureau of Indi a Limited
(CIBIL), India9s first national credit bureau in 2000. CIBIL provides a repository of
information (which contains the credit history of commercial and consumer
borrowers) to its members in the form of credit information reports.
Key People:
Board Of Directors:
NAME DESIGNATION
Key Executives:
NAME DESIGNATION
Business Objective:
Vision:
<To be the leading provider of financial services in India and a major global
bank.=
Mission:
We 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 realisation of India9s 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 we
operate.
Create value for our stakeholders
Strategic Pillars:
Driving force behind every decision at the bank:
One Bank, One KPI, One ROE
Fair to the Bank, Fair to the Customer
Focus on Service Orientation
Ecosystem Banking
Technology at the core
These issues compelled ICICI Bank to look for more efficient and flexible solutions. The
solution would have to address not only current issues, but accommodate future growth
expectations and business requirements. ICICI Bank evaluated numerous data
warehousing solutions in the pursuit of solving its issues and developed a shortlist of
alternatives, such as, Sybase, SAS and Netezza. The primary criteria for evaluation were
the price-to-performance ratio where Sybase emerged the clear winner. During this rigorous
testing, Sybase delivered faster results on independent hardware and operating systems
with minimum infrastructure.
ICICI Bank offer products and services like an online money transfer and tracking service,
current account, savings account, time deposits, recurring deposits, mortgage, loans,
automated lockers, credit cards, prepaid cards, debit card and a digital wallet called ICICI
Pockets.
PERSONAL BANKING
1) Loan Product - ICICI Bank offers wide variety of Loans Products to suit your requirements:
Home Loan
Loan Against Property
Car Loan
Personal Loan
Consumer Finance
Education Loan
Gold Loan
Loans Against Securities
Commercial Business Loan
Pradhan Mantri Mudra Yojana
Stand-Up India Scheme
2) Deposit Products –
Savings Account
Current Account
Fixed Deposits
Demat Account
Safe Deposit Lockers
3) Insurance Products –
Life Insurance
Health Insurance
a) Complete Health Insurance Policy
b) Health Care Plus
c) Personal protect Insurance Policy
Home Insurance
Car Insurance
Two Wheeler Insurance
4) Investment Options – ICICI Bank offers following fixed investment options to help build
wealth at low risk with secure returns, safety, convenience and tax benefits:
National Pension System
Bonds
Senior Citizen Saving Schemes
Public Provident Fund
Sukanya Samriddhi Yojana(SSY) Account
5) Investment Products – ICICI Bank offers following wide range of investment products
which may help to diversify investment holdings:
Mutual Fund
Gold Monetisation Scheme
6) Cards –
Debit Card
Credit card
Prepaid card
Travel Card
Unifare Metro Card
Commercial Card
Merchant Services
7) Payment Services:
Cheque Printing
Demand draft
Funds Transfer
Real Time Gross Settlement(RTGS)
National Electronic Fund Transfer(NEFT)
8) Access To Bank:
Internet Banking
Mobile Banking
ATM
Branch
CORPORATE BANKING
1) Transaction Banking
2) Global Markets
3) Investment Banking
5) Project Finance
1) Rupee Accounts
3) Premium Accounts
4) Special Accounts
9) investments
10) Insurance
11) Loans
SAVINGS ACCOUNT: ICICI also offers different types of savings account, customized as
per individual needs and requirements:
1) Titanium Privilege Account: Titanium Privilege Savings Account is designed to
offer range of products and services that makes banking convenient.
Benefits:
2) Gold Privilege Account: Gold Privilege Savings Account is designed to offer range
of products and services that makes banking convenient.
Benefits:
i. Priority service
ii. Discount on lockers
iii. Unlimited free access to any bank9s ATM throughout the country
iv. Special asset deals from time to time
v. Waiver of DD/PO charges for up to Rs. 1,50,000 per day
4) Regular Savings Account: Regular Savings Account, when opened with ICICI,
comes with an array of privileges and benefits.
Benefits:
i. Money multiplier facility
ii. Smart shopper silver debit card
iii. Other VISA benefits
5) Pockets Savings Account: Pockets is a unique <Digital Bank= and is a virtual place
to store money and use it whenever needed. Customer of any bank can create a
pockets account and instantly start using it to send and receive money from anyone.
It is a visa-powered e-wallet that customer of any bank can use to recharge mobile,
send money, shop anywhere, pay bills and much more. Pockets wallet also comes
with a physical shopping card which can be used to shop on any website or retail
stores.
6) Young Stars Account: Young Stars is a banking service for children, aged 1day -18
years, brought to you by ICICI Bank to help the parents meet the present and future
aspirations that they hold for their child.
Benefits:
i. The parents/guardian can open and operate the account on behalf of
the minor.
ii. Debit Card benefits
iii. Facility to debit money from parents account to the young stars
account.
iv. Free passbook facility
v. Manage the account from anywhere, anytime using internet banking,
iMobile app and ATMs.
7) Advantage Woman Savings Account: The ICICI Bank Advantage Woman Savings
Account enables today9s independent women to enjoy hassle-free banking services.
Benefits:
i. Cashback up to Rs. 750 per month on dining, entertainment and
jewellery and offers on usage of Debit Card.
ii. Free unlimited access to all banks9 ATMs
iii. Daily cash and withdrawal limit as per account variant
iv. Discount on lockers
8) Senior Citizens Savings Account: <LIFE PLUS=, a special savings account for
senior citizens from ICICI Bank is packed with a host of benefits, designed keeping
your unique financial requirements in mind.
Benefits:
i. Special senior citizens desk to cater to all banking transactions, so that
you don9t wait in queues.
ii. Higher interest rate on FD/RD
iii. Free special senior citizen LIFE PLUS debit card
iv. Money multiplier facility
v. Extended banking hours allows you to visit branches, as per
convenience.
vi. Anywhere banking access to various services
vii. Nomination facility available
viii. Quarterly average balance (QAB) requirement of Rs.5000
ix. Quarterly physical statements are delivered to doorstep to absolutely
free of cost
x. Passbook on request
9) Basic Savings Bank Account: With zero balance savings account, basic savings
account are operated under Pradhan Mantri Jan Dhan Yojana (PMJDY).
Benefits:
i. No charges on ICICI Debit Card
f) Made 2 Order:
Benefits:
i. Customize account as per the business need
ii. Customize charges for services
b) Trade Gold:
Benefits:
i. Free NEFT and RTGS collections
ii. Free non-cash transactions
c) Trade Premium:
Benefits:
i. Free courier and registered post charges
ii. Free NEFT and RTGS payments and collections
E-locker (2012):
ICICI e-locker is an online document storage facility to store all your valuable documents at
one central secure location. Be it your birth or marriage certificate, passbook statement, life
insurance policy, PAN card copy or any other prized document; access all your documents
anytime conveniently.
Pockets (2012):
It is a VISA-powered e-wallet that customer of any bank can use to recharge mobile, send
money, shop anywhere, pay bills and much more. Pockets wallet also comes with a
physical shopping card which can be used to shop on any website or retail stores. Pockets
is the first app in India to offer UPI, NFC and Bharat QR code payments.
ICICI bank9s innovation agenda for our villages is driven by the future needs of a Digital
India. Inspired by the success of India9s first digital Village at Akodara that stood out as a
model cashless village in the wake of demonetisation, ICICI Bank pledged to transform 100
villages into ICICI Digital Villages across the country within 100 days.
Robotic Technology:
The Smart Vault is powered by revolutionary robotic technology that minimizes
human intervention while operating the locker. The advanced Radio Frequency
Identification (RFID) enabled mechanism scans request and retrieves locker using
robotic arm from robust and secure vault. Locker is made available conveniently at a
kiosk. After the work with the locker is complete, the robotic arm also retracts locker
back to its secured location.
High-end Security:
The Smart Vault is equipped with the most evolved and intelligent security systems.
The access to the locker room is secured by Debit Card and Biometric
authentication. The locker itself has multi-level security checks with Debit Card
swipe, ATM PIN authentication, unbreakable lock system and an option of using an
additional personal lock as well. These cutting-edge security features ensure that
valuables are safe in the fortified vault and that only the owner of the vault can
access the valuables. An access to Smart Vault can be extended to joint holder of
the account by getting an add-on Debit Card issued in their name.
These Robotic Arms now help sort over six million notes every working day and 1.8 billion
annually. This brings in a frictionless and completely mechanised process of note sorting
that leads to higher accuracy and flexibility to handle larger volumes continuously. It has
also enabled the personnel to focus more on value-added and supervisory functions.
The Robotic Arms have been deployed at the bank9s currency chests across 12 cities
namely New Delhi, Jaipur, Chandigarh, Mumbai, Bengaluru, Hyderabad, Bhopal, Sangli,
Mangaluru, Raipur, Siliguri and Varanasi.
The Robotic Arms use a combination of sensors to check over 70 parameters within
seconds that enable them to operate continuously and seamlessly without any break.
With over six lakh users giving iMobile app the highest rating on Google Play Store, it has
become the top-rated Mobile Banking app in the industry.
Features of iMobile:
i. Taxi payments
ii. Rail tickets
iii. Flight tickets
iv. Hotel bookings
v. Bus ticket bookings
vi. Local deals
vii. Bill pay reminders
viii. iDirect
ix. Check status
x. Insta Banking
xi. Expressions Debit Card
xii. Tax payment
xiii. Buy General Insurance
xiv. Buy Life Insurance
xv. Forex & Travel Card
InstaBIZ (2019):
InstaBIZ is an app for business customers to access banking accounts and do transactions
on both mobile and tablet devices. One need to have is Business Banking Debit/Inquiry
Card or Corporate Internet Banking access.
Benefits of InstaBIZ:
i. View mini and detailed statement
ii. Download and e-mail statement
iii. Request for cheque book or stop cheque
iv. Do cheque status enquiry
v. Insta Banking facility before logging in to the application
vi. Purchase and recharge Fastag
vii. Bill payment and recharge
viii. Settlement of inward remittances
Shivalik Institute Of Management Education & Research Page 24
Having transaction access, InstaBIZ allows performing all the below transactional services in
addition to facilities mentioned for view access:
i. Initiate and approve Fund Transfers to own accounts or third party accounts
ii. Initiate and approve Bill Payments
iii. Recharge – Prepaid Mobile Number, DTH and Data Card
iv. Add, view and delete Payee
v. Approve Cash Management Solutions (CMS) payments and Trade Online
approvals for Letter of Credit (LC) issuance, LC amendment, Remittances,
Bills acceptance, Bills Payments
vi. Pay/Collect using Eazypay – Unified Payment Interface (UPI)
vii. Download and e-mail receipts for transactions initiated and approved
viii. MTreasury Report services
Secure Transactions:
InstaBIZ employs advanced encryption technologies making it as safe and secure as
Internet Banking that you access from your desktop/laptop. No sensitive information
is stored on your mobile handset.
Subsidiaries:
Domestic:
i. ICICI Prudential Life Insurance Company Limited
ii. ICICI Lombard General Insurance Company Limited
iii. ICICI Prudential Asset Management Company Limited
iv. ICICI Prudential Trust Limited
v. ICICI Prudential Pension Funds Management Company Limited
vi. ICICI Securities Limited
vii. ICICI Securities Primary Dealership Limited
International:
i. ICICI Bank Canada
ii. ICICI Bank USA
iii. ICICI Bank UK PLC
iv. ICICI Bank Germany
v. ICICI Bank Eurasia Limited Liability Company
vi. ICICI Securities Holdings Inc.
vii. ICICI Securities Inc.
viii. ICICI International Limited
ii. ICICI Bank has been adjudged the 8Best Company to Work For9 by Business
Today magazine in the Banking, Financial Services and Insurance (BFSI) sector.
This is the fourth year in a row that the Bank has received this accolade. The bank
stood at the fourth position in the overall list of top 25 companies.
iii. ICICI Bank has been adjudged as the 8Best Bank in Innovation9 at the recently
concluded Business Today-Money Today Financial Awards 2020. The Bank was
recognised as the winner for InstaBIZ, an industry-first initiative which is a
comprehensive digital platform curated specifically for MSME and self-employed
customers.
iv. ICICI Bank was awarded by the National Bank for Agricultural and Rural
Development (NABARD) at the Gujarat State Focus Paper 2020-2021 event. The
Bank won the award in the 8Best Bank under SHG Bank Linkage Best Bank
Category9. The Bank won the award for its work done to support women
beneficiaries through its programme for Self Help Groups and also for Facilitating
credit linkages for relevant groups.
v. ICICI Bank has won six awards at 8The Asset Triple A Digital Awards 20209. This is
the highest number of awards among all Banks in India. The Bank was declared
winner in the following categories for the India region-8Digital Bank of the Year9,
8Best Retail Mobile Banking Experience9, 8Best Digital Wealth Management
Experience9, 8Best ATM Project9, 8Best Data Analytics Project9 and 8Best Digital
Upgrade9.
vi. ICICI Bank won three awards at the IBA Banking Technology Awards 2020. The
Bank was declared winner in two categories namely 8Best Use of Data & Analytics
for Business Outcome9 and 8Most Innovative Product Using Technology9 while
it was adjudged runner up in the 8Best Payment Initiatives9 category.
vii. ICICI Bank won the Bronze Medal in the 8CSR & Not-for-Profit (beyond metro)9
category at The India PR & Corporate Communications Awards 2019. The Bank won
this award for the skilling initiatives undertaken through ICICI Foundation for
Inclusive growth that help the less-privileged youth in rural and urban areas by
enabling them to earn sustainable livelihoods.
ii. ICICI Pru Heart/Cancer Protect voted 8Product of the Year 20189 in the life
insurance category by Product of the Year (India) Private limited.
iii. Awarded the 8Best Customer Orientation in Life insurance9 award by Emerging
Asia Awards 2018.
iv. Adjudged as the 8Best Life Insurance Company of the Year9 by Emerging Asia
Insurance Awards 2018.
v. ICICI Pru iProtect Smart awarded the 8Best Term Insurance Provider of the Year9
by Money Today Financial Awards 2017-18.
vi. Awarded in the 8Best Growth in Life Insurance9 category by Emerging Asia Awards
2018.
vii. 8Best Insurance Firm of the Year 2018 – Life Insurance9 for having one of the
highest Persistency and Claim Settlement Ratio in the life insurance industry at the
Moneycontrol Wealth Creator Awards.
viii. 8Amiable Insurer9 in the Life Insurance Large category for one of the highest
Persistency Ratio 7 low Grievance Ratio at the 5 th Economic Times Insurance
Summit Awards 2018.
ix. Due to its robust and diversified distribution network, ICICI Prudential Life Insurance
has been adjudged as the 8Sales Champion9 in the Life Insurance – Large category
at the 5th Economic Times Insurance Summit Awards 2018.
x. Adjudged as the 8Life Insurance Company of the Year9 by Insurance India Summit
& Awards 2018.
xi. Awarded the 8Certificate of Merit9 for the FY2017-18 Annual report in the Insurance
Sector category by the South Asian Federation of Accountants (SAFA).
xii. ICICI Prudential Life Insurance has received the 8ISO 22301:2012 Certificate9 for
the business continuity preparedness, to deliver and support insurance products and
customer service.
ii. 1998, identifies excellence in training practices in organizations and rewards training
that makes a real difference by offering tangible benefits to the organization. This is
a significant achievement in the field of Training and acts as a role model for
businesses and corporate.
iii. The Company was selected as the joint winner in the 8Best Motor Insurance
Provider of the Year9 category. The recognition, a part of the Business Today-
Money Today financial Services Awards, was instituted in 2013 to reward the best
companies in various financial categories including insurance and mutual funds.
iv. The Company was adjudged the 8Most Broker Friendly Insurer - 20199 in the top
Quartile by the Insurance Brokers Association of India.
v. The Company was conferred with the Effie 8Silver9 Award 2019 for the health
insurance campaign <Tension nahin, Insurance lijiye=. The award is organised by
the prestigious Advertising Club, which stands for effectiveness in marketing
communications.
vi. The campaign #IWillDriveYouHome of the Company won the award under the
8Best Use of Digital/Social Media category9.
vii. The Company was conferred the ET Aspire 2 Good award for exhibiting 8All-round
Excellence in Corporate Social Responsibility9 for the years 2016-17 and 2017-
18.
viii. The Company received accolades under the 8Best Corporate Social
Responsibility Practices9 category organised by BFSI Awards. This recognition
celebrates their CSR efforts.
ICICI Venture:
i. In 2018, ICICI Venture was awarded Newscorp VC Circle9s Hall of Fame – Indian
8Fund Manager of the year 20189.
ii. The Company also received the award for 8Venture Fund of the Year9 as part of
ASSOCHAM9s Capital Markets Excellence awards
iii. In 2010, ICICI Venture received the award for 8Indian Private Equity Exit of the
Year9 and 8Indian Private Equity Professional of the Year9 from the Asian Venture
Capital Journal or AVCJ. A reputed industry publication.
iv. ICICI Venture was conferred the 8Best Private Equity Firm in India9 Award for 2007
and 2008, by Private Equity International Asia (PEI Asia) as a part of its annual
Private Equity Awards.
Social Initiatives:
The Bank has funded an array of eco-friendly projects across the country to help restore
ecological balance. The Bank strives to uphold the principles of sustainability in every way
they can. From tree plantation drives to the solar electrification of villages, Public Health
Centres and the Bank9s Branches across India; they leave no stone unturned in trying to
build a sustainable future for our planet. ICICI Bank has also been encouraging its
employees to contribute to its green initiatives for a wider reach and a much larger impact.
Solar Electrification:
ICICI Bank has partnered with local NGOs in Maharashtra with the aim of electrification of
villages and Public Health Centres in remote regions of the state.
Jawahar Tehsil was in darkness until ICICI Bank assisted in the solar electrification of 7
villages in the Tehsil. The Bank transformed lives of residents of over 190 households
across these 7 villages.
In Nandurbar district, Public Health Centres (PHCs) could not function properly due to lack
of electricity. ICICI Bank helped in the electrification 11 PHCs using solar power. This has
significantly improved access to health care services for the rural and tribal populations of
the district.
ICICI Bank is keen on making the cities green. They have sponsored a project for
developing the vicinity of the Base hospital in Delhi. The Bank undertook a tree plantation
drive around the hospital which not only helped in improving the aesthetics of the hospital,
but also helped in uplifting the mood of the patients and the staff.
To ensure uninterrupted banking transactions at the Gramin branches, ICICI Bank has
installed solar power facilities at 522 Gramin branches across 7 states of India.
Green Projects:
Spreading Our Green Initiatives Far & Wide:
As part of relentless drive to protect the planet9s natural resources and promote
sustainability, ICICI Bank has supported various ecological projects across the
country. They have also undertaken many programmes which enable them to play a
small part in helping create a greener future for our planet.
They included wind energy generation, bio-gas plant construction, solid waste
management and construction of water reservoirs across various parts of the
country.
Digital Initiatives:
In March 2020, the Bank launched a comprehensive digital banking platform called ICICI
STACK. This platform offers nearly 500 services to ensure uninterrupted banking
experience to the retail, business banking, SME and corporate customers. Many of these
services are first-in-the industry and are available instantly on the Bank9s mobile banking
platforms such as iMobile and InstaBIZ or the internet banking platform.
The Bank has formed a quick response team to take steps to protect the health of the
employees and provide essential services to the customers.
About 97% of the branches are functional with reduced working hours during the lockdown.
The branches were staffed based on the customer footfalls and employees were rostered.
ATMs across the country remain operational at all times with an average uptime of about
98%
The Bank has deployed mobile ATM vans for the benefit of the general public residing in
and around the containment zones.
Customers are encouraged to use the Bank9s digital channels like mobile application or
internet banking platform to fulfil their banking needs.
To support the nation in its fight against the Covid-19 outbreak, the ICICI Group has
committed a sum of Rs. 100 crore, including Rs. 80 crore to the PM Cares Fund.
BANKING SECTOR
A Bank is a financial institution that accepts deposits and recurring accounts from the
people and creates Demand Deposit. Lending activities can be performed either directly or
indirectly through capital markets. Due to their importance in the financial stability of a
country, banks are highly regulated in most countries. Most nations have institutionalized a
system known as fractional reserve banking under which banks hold liquid assets equal to
only a portion of their current liabilities. In addition to other regulations intended to ensure
liquidity, banks are generally subject to minimum capital requirements based on an
international set of capital standards, known as the Basel Accords.
Banking in its modern sense evolved in the fourteenth century in the prosperous cities of
Renaissance Italy but in many ways was a continuation of ideas and concepts of credit and
lending that had their roots in the ancient world. In the history of banking, a number of
banking dynasties – notably, the Medicis, the Fuggers, the Welsers, the Berenbergs, and
the Rothschilds – have played a central role over many centuries. The oldest existing retail
bank is Banca Monte dei Paschi di Siena, while the oldest existing merchant bank is
Berenberg Bank.
History:
The concept of banking may have begun in ancient Assyria and Babylonia, with the
merchants offering loans of grain as collateral within a Barter System. Lenders in ancient
Greece and during the Roman Empire added two important innovations: they accepted
deposits and changed money. Archaeology from this period in ancient China and India also
shows evidence of money lending.
The present era of banking can be traced to medieval and early Renaissance Italy, to the
rich cities in the centre and north like Florence, Lucca, Siena, Venice and Genoa. The Bardi
and Peruzzi families dominated banking in 14 th-century Florence, establishing branches in
many other parts of Europe. One of the most famous Italian banks was the Medici Bank,
set up by Giovanni di Bicci de9 Medici in 1397. The earliest known state deposit bank,
Banco di San Giorgio (Bank of St. George), was founded in 1407 at Genoa, Italy.
Fractional Reserve Banking and the issue of banknotes emerged in the 17 th and 18th
centuries. Merchants started to store their gold with the goldsmiths of London, who
possessed private vaults, and charged a fee for that service. In exchange for each deposit
of precious metal, the goldsmiths issued receipts certifying the quantity and purity of the
metal they held as a bailee; these receipts could not be assigned; only the original
depositor could collect the stored goods.
Gradually the goldsmiths began to lend the money out on behalf of the depositor, and the
promissory notes (which evolved into banknotes) were issued for money deposited as a
loan to the goldsmith. The goldsmith paid interest on these deposits. Since the promissory
notes were payable on demand, and the advances (loans) to the goldsmith9s customers
were repayable over a longer time period, this was an early form of fractional reserve
banking. The promissory notes developed into an assignable instrument which could
circulate as a safe and convenient form of money backed by the goldsmith9s promise to
pay, allowing goldsmiths to advance loans with little risk of default. Thus, the goldsmiths of
London became the forerunners of banking by creating new money based on credit.
The Bank of England was the first to begin the permanent issue of banknotes, in 1695.
The Royal Bank of Scotland established the first overdraft facility in 1728. By the
beginning of the 19th century a bankers9 clearing house was established in London to
allow multiple banks to clear transactions. The Rothschilds pioneered international finance
on a large scale, financing the purchase of the Suez Canal for the British government.
Etymology:
The word bank was taken from Middle French banque, from Old Italian banca, meaning
<table=, from Old High German banc, <bench, counter=. Benches were used as makeshift
desks or exchange counters during the renaissance by Florentine bankers, who used to
make their transactions atop desks covered by green tablecloths.
Definition of Bank:
Banking Means "Accepting Deposits for the purpose of lending or Investment of deposits of
money from the public, repayable on demand or otherwise and withdraw by cheque, draft or
otherwise."
-Banking Companies (Regulation) Act, 1949)
Under English common law, a banker is defined as a person who carries on the business of
banking by conducting current accounts for his customers, paying cheques drawn on
him/her and also collecting cheques for his/her customers.
Standard Business:
Banks act as payment agents by conducting checking or current accounts for customers,
paying cheques drawn by customers in the bank, and collecting cheques deposited to
customers9 current accounts. Banks also enable customer payments via other payment
methods such as Automated Clearing House (ACH), Wire transfers or telegraphic transfer,
and Automated Teller Machines (ATMs).
Banks borrow money by accepting funds deposited on current accounts, by accepting term
deposits, and by issuing debt securities such as banknotes and bonds. Banks lend money
by making advances to customers on current accounts, by making installment loans, and by
investing in marketable debt securities and other forms of money lending.
Banks provide different payment services, and a bank account is considered indispensable
by most businesses and individuals. Non-banks that provide payment services such as
remittance companies are normally not considered as an adequate substitute for a bank
account.
Banks can create new money when they make a loan. New loans throughout the banking
system generate new deposits elsewhere in the system. The money supply is usually
increased by the act of lending, and reduced when loans are repaid faster than new ones
are generated.
Range of Activities:
Activities undertaken by banks include personal banking, corporate banking, investment
banking, private banking, transaction banking, insurance, consumer finance, foreign
exchange trading, commodity trading, trading in equities, futures and options trading and
money market trading.
Channels:
Banks offer many different channels to access their banking and other services:
ii. Automated Teller Machine banking adjacent to or remote from the bank.
iii. Bank by mail: Most banks accept cheque deposits via mail and use mail to
communicate to their customers.
iv. Online banking over the internet to perform multiple types of transactions.
vi. Telephone banking allows customers to conduct transactions over the telephone
with an automated attendant, or when requested, with a telephone operator.
viii. Relationship Manager, mostly for private banking or business banking, who visits
customers at their homes or businesses.
ix. Direct Selling Agent, who works for the bank based on a contract, whose main job is
to increase the customer base for the bank.
Business Models:
A bank can generate revenue in a variety of different ways including interest, transaction
fees and financial advice. Traditionally, the most significant method is via charging interest
on the capital it lends out to customers. The bank profits from the difference between the
level of interest it pays for deposits and other sources of funds, and the level of interest it
charges in its lending activities.
This difference is referred to as the spread between the cost of funds and the loan interest
rate. Historically, profitability from lending activities has been cyclical and dependent on the
needs and strengths of loan customers and the stage of the economic cycle. Fees and
financial advice constitute a more stable revenue stream and banks have therefore placed
more emphasis on these revenue lines to smooth their financial performance.
Products:
Retail:
i. Savings account
ii. Recurring deposit account
iii. Fixed deposit account
iv. Money market account
v. Certificate of deposit (CD)
vi. Individual retirement account (IRA)
vii. Credit card
viii. Debit card
ix. Mortgage
x. Mutual fund
xi. Personal loan
xii. Time deposits
xiii. ATM card
xiv. Current accounts
xv. Cheque books
xvi. Automated Teller Machine (ATM)
xvii. National Electronic Fund Transfer (NEFT)
xviii. Real Time Gross Settlement (RTGS)
Liquidity Risk: Risk that a given security or asset cannot be traded quickly enough
in the market to prevent a loss (or make the required profit).
Market Risk: Risk that the value of a portfolio, either an investment portfolio or a
trading portfolio, will decrease due to the change in value of the market risk factors.
The capital requirement is a bank regulation, which sets a framework within which a bank
or depository institution must manage its balance sheet. The categorization of assets and
capital is highly standardized so that it can be risk weighted.
i. Issue of money, in the form of banknotes and current accounts subject to cheque or
payment at the customer9s order. These claims on banks can act as money because
they are negotiable or repayable on demand, and hence valued at par. They are
effectively transferable by mere delivery, in the case of banknotes, or by drawing a
cheque that the payee may bank or cash.
ii. Netting and settlement of payments – banks act as both collection and paying agents
for customers, participating in interbank clearing and settlement systems to collect,
present, be presented with, and pay payment instruments. This enables banks to
economize on reserves held for settlement of payments, since inward and outward
payments offset each other. It also enables the offsetting of payment flows between
geographical areas, reducing the cost of settlement between them
iii. Credit intermediation – banks borrow and lend back-to-back on their own account as
middle men.
iv. Credit quality improvement – banks lend money to ordinary commercial and personal
borrowers (ordinary credit quality), but are high quality borrowers. The improvement
comes from diversification of the bank9s assets and capital which provides a buffer to
absorb losses without defaulting on its obligations. However, banknotes and deposits
are generally unsecured; if the bank gets into difficulty and pledges assets as
security, to raise the funding it needs to continue to operate, this puts the note
holders and depositors in an economically subordinated position.
Without a sound and effective banking system in India it cannot have a healthy economy.
The banking system of India should not only be hassle free but it should be able to meet
new challenges posed by the technology and any other external and internal factors.
For the past three decades India9s Banking System has several outstanding achievements
to its credit. The most striking is its extensive reach. It is no longer confined to only
metropolitans or cosmopolitans in India. In fact, Indian Banking System has reached even
to the remote corners of the country. This is one of the main reasons of India9s growth
process.
During the days of the East India Company it was the turn of agency house to carry on the
banking business. The General Bank of India was the first joint stock bank to be established
in the year 1786. The other which followed was the Bank of Hindustan and Bengal Bank.
The Bank of Hindustan is reported to have continued till 1906. While other two failed in the
meantime. In the first half of the 19 th century the East India Company established there
banks, The Bank of Bengal in 1806, the Bank of Bombay in 1840 and the Bank of Madras
in 1843. These three banks also known as the Presidency banks were the independent
units and functioned as well. These banks were amalgamated in 1920 and new bank, the
Imperial Bank of India was established on 27 th January, 1921.
With the passing of the State Bank of India Act in 1955 the undertaking of the Imperial Bank
of India was taken over by the newly constituted SBI. The Reserve Bank of India (RBI)
which is the Central Bank was established in April, 1935 by passing Reserve Bank of India
Act, 1935. The Central office of RBI is in Mumbai and it controls all the other banks in the
country.
In the wake of Swadeshi Movement, number of banks with the Indian management were
established in the country namely, Punjab National Bank Ltd., Bank of India Ltd., Bank of
Baroda Ltd., Canara Bank Ltd. On 19 th July 1969, 14 major banks of the country were
nationalized and on 15th April 1980, 6 more commercial private sector banks were taken
over by the government.
The first bank in India, though conservative, was established in 1786. From 1786 till today,
the journey of Indian Banking System can be segregated into three distinct phases. They
are mentioned below:
Early phase from 1786 to 1969 of Indian Banks.
New phase of Indian Banking System with the advent of Indian Financial & Banking Sector
Reforms after 1991
Phase I:
The General Bank of India was set up in the year 1786. Next came Bank of Hindustan and
Bengal Bank. The East India Company established Bank of Bengal (1806), Bank of
Bombay (1840) and Bank of Madras (1843) as independent units and called it Presidency
Banks.
These three banks were amalgamated in 1920 and Imperial Bank of India was established
which started as private shareholders banks, mostly European shareholders.
In 1865 Allahabad Bank was established and first time exclusively by Indians, Punjab
National Bank Ltd. was set up in 1894 with headquarters at Lahore. Between 1906 and
1913, Bank of India, Central Bank of India, Bank of Baroda, Canara Bank, Indian Bank, and
Bank of Mysore were set up. Reserve Bank of India came in 1935.
During the first phase the growth was very slow and banks also experienced periodic
failures between 1913 and 1948. There were approximately 1100 banks, mostly small. To
streamline the functioning and activities of commercial banks, the Government of India
came up with the Banking Companies Act, 1949 which was later changed to Banking
Regulation Act 1949 as per amending Act of 1965. Reserve Bank of India was vested with
extensive powers for the supervision of banking in India as the Central Banking Authority.
During those day9s public has lesser confidence in the banks. As an aftermath deposit
mobilization was slow. The savings bank facility provided by the Postal department was
considered comparatively safer. Moreover, funds were largely given to traders.
Phase II:
Government took major steps in this Indian Banking Sector Reform after independence. In
1955, it nationalized Imperial Bank of India with extensive banking facilities on a large scale
especially in rural and semi-urban areas. It formed State Bank of India to act as the
principal agent of RBI and to handle banking transactions of the Union and State
Governments all over the country.
Seven banks forming subsidiary of State Bank of India was nationalized in 1960. On 19 th
July, 1969, major process of nationalization was carried out. It was the effort of the then
Prime Minister of India, Mrs. Indira Gandhi that 14 major commercial banks in the country
were nationalized.
Second phase of nationalization Indian Banking Sector Reform was carried out in 1980 with
seven more banks. This step brought 80% of the banking segment in India under
Government ownership.
The following were the steps taken by the Government of India to regulate Banking
Institutions in the country:
1949 – Enactment of Banking Regulation Act
1955 – Nationalization of State Bank of India
1959 – Nationalization of SBI subsidiaries
1961 – Insurance cover extended to deposits
1969 – Nationalization of 14 major banks
1971 – Creation of credit guarantee corporation
1975 – Creation of regional rural banks
1980 – Nationalization of seven banks with deposits over 200 crore
After the nationalization of banks, the branches of the public sector bank in India rose to
approximately 800% in deposits and advances took a huge jump by 11,000%. Banking in
the sunshine of Government ownership gave the public implicit faith and immense
confidence about the sustainability of these institutions.
Phase III:
This phase has introduced many more products and facilities in the banking sector in its
reforms measure. In 1991, under the chairmanship of M Narasimham, a committee was set
up by his name which worked for the liberalization of banking practices.
The country is flooded with foreign banks and their ATM stations. Efforts are being put to
give a satisfactory service to customers. Phone Banking and Net Banking is introduced.
The entire system became more convenient and swift. Time is given more importance than
money.
The financial system of India has shown a great deal of resilience. It is sheltered from any
crisis triggered by any external macroeconomics shock as other East Asian Countries
suffered. This is all due to a flexible exchange rate regime, the foreign reserves are high,
the capital account is not yet fully convertible and banks and their customers have limited
foreign exchange exposure.
Mergers:
The consolidation of SBI-associated banks started first by State Bank of India
merging its subsidiary State Bank of Saurashtra with itself on 13 August
2008. Thereafter it merged State bank of Indore with itself on August 27,
2010. The remaining subsidiaries, namely the State bank of Bikaner &
Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of
Patiala and State Bank of Travancore and Bharatiya Mahila Bank were
merged with State Bank of India with effect from 1 April 2017.
Vijaya Bank and Dena Bank was merged into Bank of Baroda in 2018. IDBI
Bank was categorised as a private bank with effect from January 2019.
The Private Sector Banks are split into two groups by financial regulators in India:
Old Private Sector Banks:
The old private sector banks existed prior to Nationalisation in 1969 and
maintained their independence as they were too small to be nationalized.
Among the above, Nainital Bank is a subsidiary of the Bank of Baroda, which has 98.57%
stake in it.
The country enjoys two-fold benefits owing to the presence of these foreign entities;
the first being boost in international transactions, and the second being increased
employment opportunities for qualified nationals. For what they are worth, the foreign
banks in India have also helped India establish a firmer international presence while
bringing in ease of business on a global scale for the domestic enterprises.
In India, at present there are 43 Regional Rural Banks (RRBs) since 1 April 2020.
Payments Bank:
Payments Bank is an Indian new model of banks conceptualised by the Reserve
Bank of India (RBI). These banks can accept a restricted deposit, which is currently
limited to Rs. 100,000 per customer and may be increased further. These banks
cannot issue loans and credit cards. Both current account and savings account can
be operated by such banks. Payments Banks can issue ATM cards or debit cards
and provide online or mobile banking. Bharti Airtel set up India9s first live Payments
Bank.
Cooperative Banks:
Cooperative Bank is an institution established on the cooperative basis and dealing
in ordinary banking business. Like other banks, the cooperative banks are founded
by collecting funds through shares, accept deposits and grant loans.
In India, at present, there are total 53 Urban Cooperative Banks and 31 State
Cooperative Banks.
allowed banks to extend their reach all over the world, since they no longer have to be near
customers to manage both their finances and their risk. The growth in cross-border
activities has also increased the demand for banks that can provide various services across
borders to different nationalities. However, despite these reductions in barriers and growth
in cross-border activities, the banking industry is nowhere near as globalized as some other
industries. In the US, for instance, very few banks even worry about the Riegle-Neal Act,
which promotes more efficient interstate banking. In the vast majority of nations around the
globe the market share for foreign owned banks is currently less than a tenth of all market
shares for banks in a particular nation. One reason the banking industry has not been fully
globalized is that it is more convenient to have local banks provide loans to small business
and individuals. On the other hand, for large corporations, it is not as important in what
nation the bank is in, since the corporation9s financial information is available around the
globe.
RESEARCH OBJECTIVE
The study is a mode to understand the nearby catchment area, behaviour of people in the
area towards products and offerings of various banks other than ICICI – public or private.
To grab the knowledge of the catchment and prepare the micromarket map.
To study the behaviour of public (customers of other banks too) and their views
regarding offerings of public vs private banks.
Study Area:
Pathalgaon; District – Jashpur
A) MICROMARKET STUDY
i. Customer segments
ii. Presence of other Private and Public Banks
iii. Business opportunities available for ICICI Bank
CUSTOMER SEGMENTS
Pathalgaon which comes in Jashpur district is mainly a farmer dominated area. Most of
the people completely rely on farming and work either as agricultural workers, cultivators
or daily wage workers.
The data of various customer segments given below is collected from various
government sites. They are:
1) FARMERS:
2) Cultivators:
Male – 8992
Female – 11,324
3) Agricultural Labourers:
Male – 39,902
Female – 60,168
Male – 6084
Female – 4524
5) Other Workers:
Male – 28724
Female – 8394
CUSTOMER SEGMENTS
Farmers &
Agricultural
22% labourers
6% Cultivators
12% 60%
Workers in
Household
Industry
CUSTOMER SEGMENTS
3% Total Population
There is no ICICI branch in Pathalgaon. The nearest branch of ICICI is in Dharamjaigarh which is
34 km away from Pathalgaon.
There are total 7 banks in Pathalgaon. Out of 7, 4 of them are Public Bank and rest 3 are Private
Banks. They are:
General Description:
Savings Account:
Current Account:
NEFT Charges:
RTGS Charges:
CHARGES AMOUNT
Demat account opening charges Rs. 100
Maintenance charges for Demat account Rs. 400
2) Bank of Baroda:
General Description:
Savings Account:
Current Account:
Baroda Small Business Current Account Quarterly Average Balance of Rs. 2500
Baroda Premium Current Account Quarterly Average Balance of Rs. 75000
Baroda Advantage Current Account Quarterly Average Balance; Rural-Rs. 2000,
Semi-Urban-Rs. 2000, Urban-Metro-Rs.
10000
Baroda Premium Current Account Quarterly Average Balance Rs. 2.5 lakh
Privilege
Loan Interest:
i. Home loan – 8.65% p.a.
ii. Gold loan – 1-year MCLR + Strategic Premium + 3.00%
iii. Personal loan – 10.50% to 16.15% p.a.
iv. Education loan – Range of 8.40% and 10.40%
v. Auto loan – Starts at 8.90% depending upon down payment, net income and
other factors
NEFT Charges:
NEFT CHARGES
Upto Rs. 1 lakh NIL
Above Rs. 1 lakh-Rs. 2 lakh Rs. 15 per transaction
Above Rs. 2 lakh Rs. 25 per transaction
RTGS CHARGES
Above Rs. 5 lakh Rs. 50 per transaction (between 8:00 am and
11:00 am)
Above Rs. 5 lakh Rs. 52 per transaction (between 11:am and
1:00 pm)
Above Rs. 5 lakh Rs. 55 per transaction (after 1:00 pm)
CHARGES AMOUNT
Demat account opening charges NIL
For Individuals – First year free for new
accounts
Maintenance charges for Demat account From second year onwards Rs. 500 p.a.+
GST
For Non-individual – Rs. 700 + GST
General Description:
Savings Account:
B/C INTEREST
Saving deposit b/c upto Rs. 50 lakh 3.50% p.a.
Saving deposit above Rs. 50 lakh 4.00% p.a.
Current Account:
Loan Interest:
i. Home loan- Starts at 7.20% and 7.15% p.a. for female borrower.
ii. Gold loan – Starts from 10.05% to 11.05%
iii. Personal loan-Starts from 11.50% to 12.05%
iv. Education loan-Starts from 10.45% for courses in India and 8.95% for
IIT, IIM, ISB courses
v. Auto loan-8.75% for new car and 11.20% for used car
NEFT Charges:
NEFT CHARGES
Above Rs. 10,000 to Rs. 1,00,000 Rs. 5.00 + GST
Above Rs. 1,00,000 to Rs. 2,00,000 Rs. 15.00 + GST
Above Rs. 2,00,000 Rs. 25.00 + GST
RTGS CHARGES
Above Rs. 5 lakh Rs. 50 per transaction (between 8:00 am and
11:00 am)
Above Rs. 5 lakh Rs. 52 per transaction (between 11:am and
1:00 pm)
Above Rs. 5 lakh Rs. 55 per transaction (between 1:00 pm and
4:30 pm)
Above Rs. 5 lakh Rs. 55 per transaction (after 4:30 pm)
CHARGES AMOUNT
For Individual Account Holder – Rs. 250 p.a.
Maintenance charges for Demat account From Senior Citizen- Rs. 115 p.a.
For PNB Staff – Rs. 115 p.a.
General Description:
Savings Account:
B/C INTEREST
Saving deposit b/c upto Rs. 10 lakh 3.00% p.a.
(fixed)
Saving deposit above Rs. 10 lakh 2.75% p.a.
(Linked with Repo Rate)
Current Account:
Loan Interest:
i. Home loan – 7.25% to 7.35%
ii. Gold loan – 1 year MCLR + 2%
iii. Personal loan – 11.55% p.a.
iv. Education loan –
Courses in India: 10.60% (boys); 10.10% (girls)
IIT, IIM, ISB Courses: 10.10% (boys); 10.10% (girls)
v. Auto loan – 9.25%
NEFT Charges:
NEFT CHARGES
Till Rs. 10,000 Rs. 2.50
Above Rs. 10,000 to Rs. 1 lakh Rs. 5
Above Rs. 1 lakh and upto Rs. 2 lakh Rs. 15
RTGS Charges:
CHARGES AMOUNT
Maintenance charges for Demat account Rs. 200 per annum
1) HDFC Bank:
General Description:
Savings Account:
B/C INTEREST
Saving deposit b/c below Rs. 50 lakh 3.50% p.a.
Saving deposit balance of Rs. 50 lakh 4.00% p.a.
and above
Current Account:
Loan Interest:
i. Home loan – Starts at 7.35% p.a.
ii. Gold loan – 10.05% to 17.95%
NEFT Charges:
RTGS Charges:
CHARGES AMOUNT
Maintenance charges for Demat account Rs. 750 per annum
2) IDBI Bank:
General Description:
Savings Account:
B/C INTEREST
Saving deposit b/c upto Rs. 25 lakh 3.30%
Saving deposit balance above Rs. 25 3.80%
lakh
Current Account:
Loan Interest:
i. Home loan – 7.80% onwards
ii. Personal loan – 12.00% to 13.50%
iii. Education loan – 9.50%
iv. Auto loan – 9.30%
NEFT Charges:
NEFT CHARGES
Till Rs. 10,000 NIL
Above Rs. 10,000 to Rs. 1 lakh Rs. 5 per transaction
Above Rs. 1 lakh and upto Rs. 2 lakh Rs. 15 per transaction
RTGS Charges:
CHARGES AMOUNT
Opening Charges NIL
Maintenance charges for Demat account Rs. 450 per annum
3) Axis Bank:
General Description:
Savings Account:
B/C INTEREST
Saving deposit b/c less than Rs. 50lakh 3.50% p.a.
Saving deposit balance upto Rs. 50 lakh 4.00% p.a.
to less than Rs. 100 crore
Savings deposit balance upto Rs. 100 6.00% p.a.
crore and above
Current Account:
Loan Interest:
i. Home loan – Starts from 8.10%
ii. Gold loan – 9.75% to 17.00%
iii. Personal loan – 10.99% to 16.99%
iv. Education loan –
For Boys: Loans from Rs. 4 lakh upto Rs. 7.5 lakhs (Base Rate
+ 8%)
7.50%)
Axis Bank RuPay Platinum Debit Card Rs. 200 (waived for Axis Republican main
account holder)
Axis Bank RuPay Platinum NRO Debit Card N/A
Axis Bank Smart Privilege Debit Card Rs. 150
NEFT Charges:
NEFT CHARGES
Till Rs. 10,000 Rs. 2.5
Rs. 10,000 to Rs. 1 lakh Rs. 5
Rs. 1 lakh to Rs. 2 lakh Rs. 15
RTGS Charges:
There are no charges for RTGS. Under normal circumstances the beneficiary
branches are expected to receive the funds in real time as soon as funds are
transferred by the remitting bank. The beneficiary bank has to credit the
beneficiary9s account within 30 minutes of receiving the funds transfer
message.
CHARGES AMOUNT
Opening Charges Rs. 999
Maintenance charges for Demat account NIL
Following is the comparison of banks (two Public and two Private) on the basis of few products:
1) SAVINGS ACCOUNT:
2) CURRENT ACCOUNT:
3) FIXED DEPOSITS:
4) RECURRING DEPOSITS:
Rural areas are critical for any bank as they generate money too. It has become possible for
the bank to reach out to rural areas to make profit.
It has been observed that the people of rural areas generally prefer Public Banks due to low
maintenance charges. But in past few years, it has been observed that big private sector
banks are eyeing rural India as pockets of wealth.
With the recent opening of IDBI Bank, Axis Bank and HDFC Bank in Pathalgaon, it clearly
shows that Private Banks are trying to penetrate in rural India as well.
The area does not have any ICICI branch. The nearest ICICI branch is 34km away from
Pathalgaon. The Micromarket Study conducted showed that there are business opportunities
for ICICI Bank considering some of the aspects. They are:
2) The banks which the locals prefer are not technologically advanced.
4) Use of technology to penetrate the market can be a great idea since it attracts a lot of
people.
B) DIGITAL MIGRATION
Being a rural area and having no branch of ICICI, it was difficult to find the customers of
ICICI Bank. Most of the people residing here are State Bank of India customers. The
number of people availing banking services is also very less.
Out of 155 calls, only 11 customers were of ICICI and out of 11, 9 are using the iMobile
app. The data for calling purpose was taken from Justdial.
The two ICICI customers, who were not using the app, migrated to digital banking after
knowing the benefits of digital banking.
OBSERVATION:
i. The customers of private bank in rural areas are very less as compared to public
banks.
ii. On the basis of above data, the people of rural area do not prefer digital banking.
They are fine with visiting the branch.
iii. Also it is quite difficult to make them understand the benefits of digital banking.
C) LEAD GENERATION
During this Covid-19 situation and considering the area to be rural, it was quite difficult to
persuade the locals to become an ICICI Customer.
Pathalgaon is a farmer dominated area and locals prefer Public Bank and find the Private
Banks to be unaffordable due to high maintenance charges and most importantly the high
amount for opening a savings account.
The business class segment do showed their interest in the products and offerings of the
bank but they found it unreasonable to open an account in this Covid-19 Period when all
their businesses are temporarily shut down and they are going into losses.
On the basis of the study, the rate of illiteracy and unemployment is high in Pathalgaon
which makes it difficult to make the people understand about the products and offerings of a
bank and also the benefits of digital banking.
There is no ICICI branch in Pathalgaon due to which locals are unaware of the bank and its
products and offerings. The nearest branch of ICICI is 34km away from Pathalgaon.
My comparative analysis shows that State Bank of India holds maximum Savings and
Current Account in Pathalgaon and emerges as the most trusted bank among public as well
as private banks.
While gathering information, I came to know that the people in the town have to stand in the
queue in the branch as well as in the ATMs due to which it consumes a lot of time.
Being a rural area, people are still hesitant to use digital banking. Some of them stated that
they are fine with visiting the branch rather than using the official app of banks and various
other digital platforms for doing transactions.
5 out of 10 people while interaction were not aware of various online services. Seeing this,
in my opinion banks need to create awareness about various online services which will
make their work easier.
Next, what was found that people are having 2-3 accounts in Public Banks seeing the
various offers provided by the government and still reluctant to open account in private
bank due to high service charges and high minimum balance for opening savings account.
Pathalgaon is an agricultural dominated area where most of the locals are farmers,
cultivators and agricultural workers.
The farmers and daily wage workers in town mostly prefer either Gramin Bank or State
Bank of India.
But there are many business men who are running provisional stores(18), petrol pump(2),
mobile services and accessories(10) and many more who are in need for digital banking so
that they could do the transactions hassle free even in their busy schedule for payments of
vendors and all.
As Pathalgaon comes in a rural area, 47% of public are less educated and their awareness
level is very low.
Public is not aware about ICICI Bank and its products and facilities. This is due to lack of
advertisement and no branch of ICICI in the area as well.
The study shows that for the people of rural area the term <Banking= is synonym to <State
Bank of India=.
LIMITATIONS
Due to the lockdown in this pandemic, the study is confined to a particular area and a very
small sample of respondents.
The study conducted is only related to ICICI Bank in nearby area. Hence, the findings
cannot be treated as representative of the other ICICI branches.
The study can also not be generalized for public and private sector banks of the country.
Some of the respondents did not like to provide the information. This was one of the most
important limitations faced.
Most of them were not aware of the process of research and this was creating problem.
Due to high illiteracy rate of the area, it was difficult to make locals understand about the
benefits of digital banking.
CONCLUSION
CONCLUSION
ICICI Bank is providing wide area of products in the current times and is one of the leading
private banks in the banking industry.
ICICI Bank has always been in the forefront in introducing new advanced technologies in
the field of banking.
The study reveals that most of the people in the area are less aware about the ICICI Bank
because there is no branch of ICICI in Pathalgaon.
The study reveals that the locals are less aware of the digital banking and its benefits due
to less promotional activities.
Pathalgaon is an agricultural dominated area where most of the locals are farmers,
cultivators and agricultural workers.
The farmers and daily wage workers in town mostly prefer either Gramin Bank or State
Bank of India.
Even after explaining the benefits of digital banking, poor and uneducated locals were not
able to understand it.
But the bank is known to some of the locals and businessmen, so it is a good sign for the
bank to open its branch in Pathalgaon too.
From the above study and findings, we can conclude that ICICI Bank is not known very
much but it will be known to the locals of Pathalgaon if it opens its branch and do a proper
advertisement of the offerings of the bank.
RECOMMENDATIONS
RECOMMENDATIONS
Bank should open its branch here as the nearest branch is 34km away from Pathalgaon.
After that, the bank should be promoted publically so that more individuals should know
about their bank & product.
Bank should do weekly activities for making people aware about the benefits of digital
banking in nearby rural areas.
The main reason Public banks are preferred in rural areas is due to less amount or charges
for opening a savings account. There has to be low cost business model in place for the
rural areas.
Apart from low cost deposits, the bank can also focus on agriculture finance related
business as the area is an agriculture dominated area. The bank can show agricultural
lending as a part of their retail portfolio which will help to bring the attention of the locals.
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