LOANS AND ADVANCES IN ICICI BANK

Abstract
• Banking regulations act of India, 1949 defined banking has
“acceptance for the purpose of lending or investment of deposits of
money from the public, repayment on demand or otherwise and
withdraw able cheques, drafts order or otherwise”
INTRODUCTION AND REVIEW OF
LITERATURE.
Introduction
FINANCE
• Public Finance
• Private finance
• AIMS of finance
• Types of Loans
• Types of Advances
• DESIGN OF THE STUDY
• ►RESEARCH DESIGN
• ►OBJECTIVES OF THE STUDY
• ►TECHNIQUES USED IN THIS ANALYSIS
• ▸ ADVANTAGES OF THE STUDY
• LIMITATIONS OF THE STUDY.
 INTRODUCTION

Finance is the Life-Blood of Industrial System, without finance business cannot run successfully.

“Finance is the agent that directs the flow of economic activity and facilitates its smooth operation”.
FINANCE

Public finance Private finance

 Government Institution  Personal finance

 States  Business finance
 Local Self-Government  Finance Of Non-profit
 Central government Organization

PUBLIC FINANCE
It deals with requirement, receipts and disbursement of funds in the government institutions like states, local
self-government and central government.
PRIVATE FINANCE
It is concerned with requirements, receipts and disbursement of funds in case of an individual, a profit seeking
organization and a non-profit business organization.
 AIMS OF FINANCE
Acquiring sufficient funds
Proper utilization of funds
Increasing profitability maximizing firms value
Deciding capital structure
Proper use of surplus

Meaning of the bank:

“A bank is an establishment which makes to individuals such advances of as May required and safely made and to
which individuals entrust money when not required by the for us”.

Types of loans
Loans and advances are given to all types of persons, particularly to businessman and investors against personal
securities, like gold, silver, and other movable and immovable assets. This function is the main source of profit to
the bank.
 S.No. Type of Loan Purpose
1 Surety loan Education, marriage, Medical, domestic, House repair and
Construction

2 Salary Loan Education, marriage, Medical, domestic, House repair and

Construction

3 Jewelers Loan Education, marriage, Medical, domestic, House repair and

Construction
4 Loans on NSC, ivc, and kvc Education, marriage, Medical, domestic, House repair and
Construction

5 Business improvement loan for business improve Only

6 Vehicle loan for all types of new Vehicle
7 Housing loan House construction, Renovation etc
8 Cash loan for all business, house Construction, etc

Types of advances:
Bank advances consists of the following
• Cash credit
• Over draft
• Clean loans
• Discounting of bills
 DESIGN OF THE STUDY
RESEARCH DESIGN
• Scanning through standard text book to understand the theory behind loans and advances of
the bank.

• Decision regarding the study of loans and advances of the bank.

• Collection of industry profile and their different schemes. Finally forwarding certain
recommendations and conclusions to ‘ICICI BANK.

OBJECTIVES OF THE STUDY

 The banks are the societies whose main objective is to provide services to the society
 The secondary objective is to know how the various facilities provided by the banks help in satisfying customer
needs.
 To understand and analyze the various loans provided by the banks
 To study the patterns of loans
 To understand the problem involved in few schemes and to suggest necessary changes so that all schemes of
banks can be performed well.
TECHNIQUES USED IN THIS ANALYSIS

The data collected from various sources are analyzed with the help of the following:
• Tables
• Graphs
For the purpose of analysis, Statistical tools, Charts and Diagrams were also used
for the PRESENTATION of the collected data.

ADVANTAGES OF THE STUDY

• They can be easily procured.

• They can be used for short-term as well as medium-term financing.
• Interest paid on a bank loan is a tax deductible expenditure.

LIMITATIONS OF THE STUDY

• The study is restricted for a period of 60 Days

• The analysis is based on Annual Report of the company.
• The study is limited to information provided by the bank.
COMPANY PROFILE & INDUSTRY
PROFILE

COMPANY PROFILE
ICICI BANK.
SERVICES.
AWARDS AND ACHIEVEMENTS OF ICICI
• CONTROVERSIES.
 COMPANY PROFILE
ICICI BANK
• ICICI Bank, stands for Industrial Credit and Investment Corporation of India, is an Indian multinational banking
and financial services company headquartered in Mumbai, Maharashtra, India, with its registered office in
Vadodara. In 2017,
• ICICI bank the third largest bank in India in terms of assets and third in term of market capitalization
• It offers a wide range of banking products and financial services for corporate and retail customers
• The bank has a vast network of 4,850 branches and 14,404 ATMs in India, and has a presence in 19 countries
including India.
• 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
• 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
Services
• iMobile SmartKeys
• Money2India
• Extra home loans
• Contactless Credit and Debit Cards
Awards and Achievements of ICICI
2003
 "The Asian Banker Excellence in Retail Financial Services Program" by The Asian Banker

2004
 Best Bank in India Award presented by Euromoney Magazine

2006
 Bank of the Year 2006 India by the Banker

2017
 ICICI Bank won the Best Banking Security System by The
Asian Banker
2018
 ‘Best Retail Bank in India’ at the Asian Banker International Excellence in Retail Financial Services
Awards 2018. ICICI Bank has won this award three years in a row.
Controversies
Inhumane debt recovery methods
• A few years after its rise to prominence in the banking sector, ICICI bank faced allegations on the recovery
methods it used against loan payment defaulters.
• A number of cases were filed against the bank and its employees for using "brutal measures" to recover
the money.

• The bank also faced allegations of inappropriate behavior in recovering its loans.

• These allegations started initially when the "recovery agents" and bank employees started threatening the
defaulters
• This led to a lot of legal battles and the bank paying huge compensations.
DATA ANALYSIS & INTERPRETATION

INDUSTRIAL LOAN
• CONSTRUCTION LOAN
• JUWEL LOAN
 INDUSTRIAL LOAN

Quantum of loan

• Up to Rs. 4, 99,999 - 14% interest

• RS. 5,00,000 to 14,99,999 - 14.5% interest
• More than 15,00,000 - 15% interest

PURPOSE
1.For starting of the industry.
2.For the purchase of machinery/building and other implements.

Period of loan
• The maximum duration of loan was 180 months (15 years)

Objective
• To provide financial assistance to the people who willing to construct the industry

Documents for classification:

1.If it is land then land papers.
2.Machine towers hypothecation.
3.If it is immovable property then its papers
1. Industrial loans during the year

YEAR LOANS (Rs.)

2019-2020 472

2020-2021 472

2021-2022 400

INTERPRETATION
The bank during last 3 previous years they did noht sanctioned any industrial loan the bank has to
pay a special interest to increase the industrial loans.
 CONSTRUCTION LOAN
Quantum of loan
• Up to Rs. 4, 99,999 - 12% interest
• RS. 5,00,000 to 14,99,999 - 12.5% interest
• More than 15,00,000 - 13.5% interest
Purpose
For the Construction of House
Period of loan
The maximum duration of loan was 180 months (15 years)
Objective
To provide financial assistance to the middle class people to construct the infrastructure, factory, other the
house construction
Procedure and documents
1.Applicant should fill up the form provide by bank.
2.Applicant should pay the service charge as prescribed by the bank.
Documents
1. It is self owned with sale papers he should have the old owner’s papers which are favoring them.
2. If it is fore father’s property than he should hold the documents that he is owner.
3. Khatha papers.
 2. Total loan amount for the last three financial years

YEAR LOANS (Rs.)

2019-2020 13,77,77,551 2021-2022

2020-2021 14,44,13,030 2020-2021

2021-2022 14,81,80,211 2019-2020

130000000 135000000 140000000 145000000 150000000

INTERPRETATION

From the above graph we can understand that the firm’s construction was in increasing trend. During the current
year it has been increased to 14, 81, and 80,211 at a maximum level. This shows the firms growing status.
JEWEL LOAN

Quantum of loans:-

Maximum up to10 lakhs on gold ornaments as 1 gram gold amount to Rs.1300.

Duration of loan:-

60 months.

Interest Rate:-
12% annum

Special features:-
1.These loans are especially given only in these types of co-operative banks.
2.There is no much of security needed.
3.Jewel Loan for the last three financial years

loans
YEAR LOANS (Rs.)
300000000
250000000
2019-2020 14,12,61,957
200000000
150000000
2020-2021 18,99,21,492
100000000
50000000
2021-2022 29,47,55,902
0
2019-2020 2020-2021 2021-2022

loans

INTERPRETATION

From the graph we can seen that the jewell loans of the bank has been increasing from year to year. This
shows the positivity of the company and also the bank’s goodwill. Compare to 2015-2015 and current year
the amount has been increased by 30to 40%.
SUMMARY & CONCLUSION

FINDINGS.
SUGGESTIONS
• CONCLUSION.
FINDINGS

The bank repeat loans when previous loans are refunded.

Small enterprises are provided loans under business loan.
Bank has less explorer to globalization world.
Bank does not have website and online banking.
The bank branches are limited to Bangalore city only.
• The bank uses only Kannada in its most transactions.
SUGGESTIONS
The profit position can be improved by reducing the interest rates o
• loans.
• The providing of loans must be increased so it will help in raising the
• income. The bank has to extend their branches all throughout state
and expand as the bank grows.
• Bank has to introduce new loan schemes to encourage more and
more different classes of people.
 CONCLUSION
 In the sense, it involves proper custody and authorized utilization of available funds.

 The third approach with the financial decision making. It is related to procurement of funds
and as well as their effective utilization.

 Howard and Upton opined that “Finance may be defined as the administrative functions in
an organization may have the means to carry out its objectives satisfactorily.”

 It covers not only financial planning, forecasting, raising finance but optimum use of the
funds.
SUBMITTED BY:

E. SAMPATH KUMAR
MD. ABDUL FAISAL
P. BHARATH
SHAIK MUDASSR

THANK YOU