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What is Bank Today?
The current banking scenario is greatly different from the past.
Barriers to entry for the retail banking segment are being lowered.
The growing variety of delivery channels for banking enables new entrants to
thrive.
Indian Banking Industry Segmentation
Reserve Bank of
India
Non Scheduled
Scheduled Commercial Bank
Commercial Bank
Ô
È PSU banks majority stakes are held by the jovernment of India(joI) & make up the largest category in
the Indian banking system.
È Regional Rural Banks (RRBs)- established during 1976-1987 & are owned jointly by the Central
jovernment, concerned State jovernment and a sponsoring public sector commercial bank.
È Private Sector banks have the majority of share capital with private individuals & corporates. Non-
nationalized are ͚old͛ and nationalised in 1993 are stated as ͚new private banks͛.
È Foreign banks have their registered and head offices in a foreign country but operate their branches in
India.
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ICICI stands for Industrial Credit and
Investment Corporation of India.
1994 - ICICI
established Banking
Corporation as a
banking subsidiary
2001 - ICICI acquired Bank
of Madura(est. 1943) was
a Chettiar bank, Chettinad
Mercantile Bank (est.
1933) and Illanji Bank
(established 1904) in the
1960s.
1955 - ICICI incorporated at
the initiative of World Bank,
the jovernment of India and
representatives of Indian
industry.
Ô
Company Milestones
2006: 1st Indian bank Opened branches in UK, Belgium & representative offices in Bangkok,
Jakarta & Kuala Lumpur.
2009: ICICI NRI Services wins Asian Banker Award for Excellence in Business Model
Innovation
2010: ICICI Bank announces Base Rate (͞I-Base͟) at 7.50% p.a. Announced merger with Bank
of Rajasthan with it through share-swap in a non-cash deal that values the Bank of Rajasthan
at about Rs 3,000 crore. The Monetary Authority of Singapore (MAS) has today granted
Qualified Full Banking (QFB) privileges to ICICI Bank Singapore branch.
Product Portfolio
ICICI Bank
Personal NRI
Banking Banking
Corporate
Banking
ICICI group today - A virtual Universal bank
Retail Financial Services Corporate Financial Services
Internet
ͻB2B
ͻConsumer
Finance Portals
ICICI ͻWeb Trade ICICI
ͻVenture Capital
ICICI Bank ICICI Bank
10
Personal Banking
·eposits.
Loans.
Investments.
Cards.
Insurance.
Online Services.
Bank Accounts.
Investments.
Property Solutions.
Insurance.
Loans.
Corporate Banking
Corporate Net Banking.
Cash Management.
Trade Services.
FX Online.
SME Services.
Online Taxes.
Custodial Services.
CEO
EXECUTIVE ·IRECTOR
Branch Branch
Branch Branch
Managers Managers
Branch Branch Managers Managers
Managers Managers
Financial Service Organizations
Ë Special characteristics:
Monetary assets:
SWOT Analysis
ICICI Bank
Opportunities
1) ·ecrease in Housing Loan
Threats
Interest Rates
1) Volatility of Indian financial
2) Opportunity to increase fee
market
based income
3) Private equity in India
Value Chain Analysis
Value Chain Analysis
KOTAK
AXIS BANK HDFC BANK KARUR VYSYA
ICICI Bank MAHINDRA
BANKS -> LIMITED LTD. BANK LTD
BANK LTD.
2008 2009 2008 2009 2008 2009 2008 2009 2008 2009
RATIOS % % % % % % % % % %
Credit - Deposit Ratio 68.09 69.48 62.94 69.24 92.30 99.98 94.69 106.27 75.07 68.93
Investment - Deposit Ratio 38.46 39.47 49.02 41.19 45.60 47.20 55.66 58.23 28.10 31.23
Ratio Of Net Interest Margin
2.83 2.87 4.66 4.69 1.96 2.15 5.08 5.33 2.66 2.59
To Total Assets
Return on Assets(in %) 1.24 1.44 1.32 1.28 1.12 0.98 1.10 1.03 1.63 1.49
Return On Equity 17.60 19.12 17.74 17.17 11.63 7.77 11.19 7.36 18.49 18.57
ICICI bank standing in its peer group
KOTAK
AXIS BANK HDFC BANK KARUR VYSYA
ICICI Bank MAHINDRA
BANKS -> LIMITED LTD. BANK LTD
BANK LTD.
2008 2009 2008 2009 2008 2009 2008 2009 2008 2009
RATIOS % % % % % % % % % %
Capital Adequacy Ratio -
Tier I 10.17 9.26 10.30 10.58 11.76 11.84 14.46 16.13 12.11 14.40
The ICICI jroup͛s customers need to see that the firm is differentiating
service and communications, based on their learning independently
and on the customer expectation and the expected values expected.
·evelop and Customize
In a customer-focused world, product and channel development
has to follow the customer͛s lead, identify customer͛s wants,
determine the value and desire of the customer, etc.
All areas are trained how to use customer information to tailor interactions
based on both customer needs potential customer value.
ICICI is strongly of the opinion that value is not just based on the price of the
product or the discounts offered but are based on a number of factors
including the quality of products and services, convenience, speed, ease of
use, responsiveness, and service excellence.
Acquire and Retain
The more ICICI learns about customers, the easier it is to pinpoint
those that are producing the greatest value for the organization.
As ICICI moves step further in CRM they hopes to gain insight and
understanding that enhance the subsequent efforts. The
organization shall become increasingly sophisticated in the
implementation of CRM processes, and over a period of time shall
become increasingly profitable by doing so.
Successful customer retention is based on the organization's
ability to constantly deliver, based on three principles: