Final Report

COMPANY NAME:-ICICI BANK LTD. SUBMITTED BY:-SUSHANTA KUMAR DASH

COMPANY GUIDE: - Mr. BIRENDRA SHARMA ENROLLMENT NO.-8NBSM012

FACULTY GUIDE: - Mr. DEVI PRASAD DASH

A

FINAL REPORT ON ICICI BANK

UNDER THE GUIDANCE OFMR. DEVI PRASAD DASH

(FACULTY GUIDE)MISS.KOEL GHOSH(COMPANY GUIDE)

SUBMITTED TO: - SUBMITTED BY:-

Mr. DEVI PRASAD DASH MR.SUSHANTA KUMAR DASH (FACULTY GUIDE) ENROLLMENT NO.8NBSM012Mr. BIRENDRA SHARMA (COMPANY GUIDE)

2

THIS REPORT SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE DEGREE OF ‘ MBA’

Table of Contents Page. No

Declaration……………………………………………………………. 4

Acknowledgement…………………………………………………….. 5

3CET…………………………………………………………………… 6

SWOT analysis………………………………………………………… 19

Objectives……………………………………………………………… 27

Target and task assigned……………………………………………… 29

Achievement Vs target……… ………………………….................... 29

Strategy ………………………………………………………………. 34

Mid Course correction………………………………………………… 38

Limitation……………………………………………………………… 38

Literature survey………………………………………………………. 39

Conclusion…………………………………………………………….. 52

Annexure………………………………………………………………... 53

Reference……………………………………………………………….. 54

3

DECLARATION

I Shri Sushanta Kumar Dash of ICFAI National College, Sambalpur do here by declare that

the Live Project entitled:-

“A Final report on ICICI Bank Ltd.”

Is originally written by me under the guidance of Mr.Devi Prasad Dash, Faculty guide.

ICFAI National College, Rourkela and Mr. Birendra Sharma, Company guide. This paper is

submitted on the partial fulfillment of the requirement for the award of the degree of MBA.

4

ACKNOWLEDGEMENT

I take this opportunity to express my gratitude to my Institute because of which I got this opportunity to work on the present project. I must also express my thanks to all the faculty members of my Institute who extended all help and cooperation, as and when required. My special thanks are due to Prof. Devi Prasad Dash and my company guide Mr.Birendra Sharma who gave valuable guidance to me, without which completing the project would not have been possible.

I take this opportunity to thank those who helped to make this project a better work through their constructive criticism, helpful suggestion and over all support

I am honored to extend my sincere thanks to my faculty Prof. Devi Prasad Dash for expressing their faith on me by assigning me this prestigious project. Their ideas and support always guide me in the completion of the project their timely advice and encouragement stood us in good stead and a constant source of inspiration for my throughout the tenure of project work.

I am also thankful to my family, friends for their support in successful completion of this project..

Sushanta Kumar DashEnrollment .8NBSM012

5

3CET REPORT

COMPANY :

Type Private, BSE & NSE, NYSE

Founded1955 (as Industrial credit and

Investment corporation of India)

Headquarters

ICICI Bank Ltd.,

ICICI Bank Towers,

Bandra Kurla

Mumbai, India

Key people

N Vaghul, K.V. Kamath, Chanda

Kochhar, V Vaidyanathan, Madhabi

Puri

Industry

Banking

Insurance

Capital Markets and allied industries

ProductsLoans, Credit Cards, Savings,

Investment vehicles, Insurance etc.

Revenue ▲ USD 5.79 billion

6

Total assets Rs. 3,997.95 billion (US$ 100

billion) at March 31, 2008.

ICICI Bank (BSE: ICICI) ( Industrial Credit and Investment Corporation of India) is India's largest private sector bank in market capitalization and second largest overall in terms of assets. Bank has total assets of about USD 100 billion (at the end of March 2008), a network of over 1,491 branches, 22 regional offices and 49 regional processing centers, about 4,485 ATMs (at the end of September 2008), and 24 million customers (at the end of July 2007). ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and specialized subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital and asset management. (These data are dynamic.) ICICI Bank is also the largest issuer of credit cards in India. ICICI Bank has got its equity shares listed on the stock exchanges at Kolkata and Vadodara, Mumbai and the National Stock Exchange of India Limited, and its ADRs on the New York Stock Exchange (NYSE).

The Bank is expanding in overseas markets and has the largest international balance sheet among Indian banks. ICICI Bank now has wholly-owned subsidiaries, branches and representatives offices in 18 countries, including an offshore unit in Mumbai. This includes wholly owned subsidiaries in Canada, Russia and the UK (the subsidiary through which the hisave savings brand is operated), offshore banking units in Bahrain and Singapore, an advisory branch in Dubai, branches in Belgium, Hong Kong and Sri Lanka, and representative offices in Bangladesh, China, Malaysia, Indonesia, South Africa, Thailand, the United Arab Emirates and USA. Overseas, the Bank is targeting the NRI (Non-Resident Indian) population in particular.

ICICI reported a 1.15% rise in net profit to Rs. 1,014.21 crore on a 1.29% increase in total income to Rs. 9,712.31 crore in Q2 September 2008 over Q2 September 2007. The bank's current and savings account (CASA) ratio increased to 30% in 2008 from 25% in 2007.

(ICICI Bank HQ at BKC Mumbai)

7

History of ICICI

1955 The Industrial Credit and Investment Corporation of India Limited (ICICI) was incorporated at the initiative of 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.

1994 ICICI established Banking Corporation as a banking subsidiary. Formerly Industrial Credit and Investment Corporation of India. Later, ICICI Banking Corporation was renamed as 'ICICI Bank Limited'. ICICI founded a separate legal entity, ICICI Bank, to undertake normal banking operations - taking deposits, credit cards, car loans etc.

2001 ICICI acquired Bank of Madura (est. 1943). Bank of Madura was a Chettiar bank, and had acquired Chettinad Mercantile Bank (est. 1933) and Illanji Bank (established 1904) in the 1960s.

2002 The Boards of Directors of ICICI and ICICI Bank approved the reverse merger of ICICI, ICICI Personal Financial Services Limited and ICICI Capital Services Limited, into ICICI Bank. After receiving all necessary regulatory approvals, ICICI integrated the group's financing and banking operations, both wholesale and retail, into a single entity.

Also in 2002, ICICI Bank bought the Shimla and Darjeeling branches that Standard Chartered Bank had inherited when it acquired Grindlays Bank.

ICICI started its international expansion by opening representative offices in New York and London.

2003 ICICI opened subsidiaries in Canada and the United Kingdom (UK), and in the UK it established an alliance with Lloyds TSB.

It also opened an Offshore Banking Unit (OBU) in Singapore and representative offices in Dubai and Shanghai.

2004 ICICI opens a rep office in Bangladesh to tap the extensive trade between that country, India and South Africa.

2005 ICICI acquired Investitsionno-Kreditny Bank (IKB), a Russia bank with about US$4mn in assets, head office in Balabanovo in the Kaluga region, and with a branch in Moscow. ICICI renamed the bank ICICI Bank Eurasia.

Also, ICICI established a branch in Dubai International Financial Centre and in Hong Kong.

2006 ICICI Bank UK opened a branch in Antwerp, in Belgium. ICICI opened representative offices in Bangkok, Jakarta, and Kuala Lumpur.

8

2007 ICICI amalgamated Sangli Bank, which was headquartered in Sangli, in Maharashtra State, and which had 158 branches in Maharashtra and another 31 in Karnataka State. Sangli Bank had been founded in 1916 and was particularly strong in rural areas.

ICICI also received permission from the government of Qatar to open a branch in Doha.

ICICI Bank Eurasia opened a second branch, this time in St. Petersburg.

2008 The US Federal Reserve permitted ICICI to convert its representative office in New York into a branch.

BUSINESS OBJECTIVES:

VisionTo 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 service.

expand the frontiers of our business globally. play a proactive role in the full realisation 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 we operate. create value for our stakeholders.

Product and Services Service and banking of ICICI bank categorized in to personal banking, business banking and NRI banking services.Personal banking- Deposit in form of saving, recurring, term deposit, senior citizen deposit and children depository account are there for individual customer can also avail of their housing, automobile, farm equipment, business or personal loan scheme. Personal client can also invest in mutual funds and participate in stock trading through ICICI bank.

Business banking – Business banking services of ICICI Bank are exhaustive. Project financing, deal assessment, and land evaluation are investment banking services offered to corporate clients. Global trade and cash management transaction services facilitate remittances and receipts across important cities. Capital market and custodial services enable business houses to participate in equity trading and transfer across major stock markets of world. 

9

CUSTOMER

ICICI bank targets all segment of customer with various types of products and services. I interacted with a a lot of customers and collect their feedback on the given services of company, and feedback are positive response from all point of view. Customers are beneficiary from both sides monetary as well as non monetary. The bank targets to add nearly 500,000 customers under the new scheme in the next one year and plans to offer auto loans through the new online channel in the future, ICICI Bank's Executive Director, V Vaidyanathan, said here.

"As of now, nearly 24 per cent of our customer transactions are happening through internet. We are primarily targeting our urban customers, who constitute nearly 70 per cent of our total customer-base," Vaidyanathan said.

Customers, opting for the service can also benefit from the quantum optima facility, wherein if the balance exceeds Rs 5,000, the money will automatically be transferred to a fixed deposit scheme, he said. The facility, which also enable customers to transact between an ICICI Bank account and accounts in other banks, is being offered free of cost, he said ICICI bank, presently, has above 2 crore customers. The lender opened nearly 470 branches in the last fiscal. The lender has also plans to launch 'SMS n Cash' scheme later this week under which ICICI account holders can transfer funds to those who do not have a bank account. ICICI bank is strongly committed to protecting the privacy of its customers and has taken all necessary and reasonable measures to protect the confidentiality of the customer information and its transmission through the world wide web and it shall not be held liable for disclosure of the confidential information when in accordance with this privacy commitment or in terms of the agreements, if any, with the customers.

ICICI bank Endeavour’s to safeguard and ensure the security of the information provided by the customer. ICICI bank uses 128-bit encryption, for the transmission of the information, which is currently the permitted level of encryption in India. When the information provided by the customers is not transmitted through this encryption, the customer's system (if configured accordingly) will display an appropriate message ensuring the best level of secrecy for the customer's information.

The customer would be required to cooperate with ICICI bank in order to ensure the security of the information, and it is recommended that the customers necessarily choose their passwords carefully such that no unauthorized access is made by a third party. To make the password complex and difficult for others to guess, the customers should use combination of alphabets, numbers and special characters (like! @, #, $ etc.). The customers should undertake not to disclose their password to anyone or keep any written or other record of the password such that a third party could access it.

ICICI bank undertakes not to disclose the information provided by the customers to any person, unless such action is necessary to:

Conform to legal requirements or comply with legal process;

10

Protect and defend ICICI bank's or its affiliates rights, interests or property;

Enforce the terms and conditions of the products or services; or

Act to protect the interests of ICICI bank, its affiliates, or its members, constituents or of other persons.

COMPETITOR

The main competitor of is ICICI bank is SBI because this bank is totally taken by government after this bank HDFC bank is the main competitor of ICICI bank .There are different types of segment operation semment, investment and services, demat and NRI services.The competitor from the operation segment are State Bank of India(SBI), Axis, Housing Development and Financial corporation(HDFC) etc.From the investment And service sector HDFC standard life insurance corporation, Bharati Axa life insurance ,Reliance Life Insurance Corporation, Max new work life insurance SBI Life insurance,Life Insurance Corporation of India.In demat section India bull,Anangram,SBI,HDFC,India Infoline are the main competitor of ICICI bank.In the NRI service section the Western Union bank is the main competitor of ICICI bank.There are some other company who also compete with the ICICI bank After the SBI the HDFC bank is the main competitor of ICICI bank.

HDFC Bank Ltd. is a commercial bank of India, incorporated in August 1994, after the Reserve Bank of India allowed establishing private sector banks. The Bank was promoted by the Housing Development Finance Corporation, a premier housing finance company (set up in 1977) of India. HDFC Bank has 1,500 branches and over 2,890 ATMs, in 530 cities in India, and all branches of the bank are linked on an online real-time basis. As of September 30, 2008 the bank had total assets of INR 1006.82 billion.

State Bank of India is the largest bank in India. It is also, measured by the number of branch offices and employees, the second largest bank in the world.[citation needed] The bank traces its ancestry back through the Imperial Bank of India to the founding in 1806 of the Bank of Calcutta, making it the oldest commercial bank in the Indian Subcontinent. The Government of India nationalised the Imperial Bank of India in 1955, with the Reserve Bank of India taking a 60% stake, and renamed it the State Bank of India. In 2008, the Government took over the stake held by the Reserve Bank of India.SBI provides a range of banking products through its vast network in India and overseas, including products aimed at NRIs. With an asset base of $126 billion and its reach, it is a regional banking behemoth. SBI has laid emphasis on reducing the huge manpower through Golden handshake schemes and computerizing its operations.The State Bank Group, with over 16000 branches , has the largest branch network in India. It has a market share among Indian commercial banks of about 20% in deposits and advances, and SBI accounts for almost one-fifth of the nation’s loans.There are some other banks which gives challenging some how in the banking and service sectorthey are:

Allahabad Bank Andhra Bank

11

Bank of Baroda

Bank of India

Bank of Maharashtra

Canara Bank

Central Bank of India

Corporation Bank

Dena Bank

IDBI Bank

Indian Bank

Indian Overseas Bank

Oriental Bank of Commerce

Punjab & Sind Bank

Punjab National Bank

Syndicate Bank

UCO Bank

Union Bank of India

United Bank of India

Vijaya Bank

ENVIRONMENT

An employer the bank extends a lot of authority along with justified accountability to you. The working culture is very collaborative in nature. It can be owed to the fact that the bank is highly segmented with a lot of overlapping and mostly distinct roles and responsibility.ICICI Bank has

12

established itself as a one stop solution (Universal Bank) for all financial need of individuals and institutions alike. The credit for the same can be attributed to its vast network, probably the largest among private sector banks.This makes the life of an employee a lot easier, especially for those who face the external customers. You do not have to justify your organization, it is only the product that has to be pitched. As far as employee benefits are concerned, ICICI Bank offers a lot of financial benefits ranging from your family health insurance to your kids school donations. The organization is sensitive to the needs of its employees as this quality is one of the building blocks (DNA) of the organizational culture.  The organization will be giving you enough flexibility to innovate and come-up with new ideas. It will also exhibit its in terms of well laid systems, processes and infrastructure. It will extend a fast track growth for those with extraordinary talent at the same time offer stability to those who are able to deliver satisfactorily.Overall, I would say it’s a lifetime experience to work with such a behemoth organization. It might not be the best paymaster but it definitely will impress you with its capability as the head master (Principal) of banking industry.there are huge competition between the eployee to achieve theo goal.

TECHNOLOGY

ICICI use many type of advance technological software like Pinnacle 7.0 and Pinnacle7.016.Among from this software ICICI bank uses the e-banking, core banking, mobile banking electronic display sy ICICI Bank was using Teradata for its data warehouse.  However, due to its proprietary hardware, the cost of procurement, upgrades and administration was soaring. The closed box architecture of Teradata imposed restrictions on scalability. Secondly, querying and loading could not happen simultaneously. Queries could only be run during business hours because the loading of data had to take place during off-business hours. This meant that the refresh rate of EDW was delayed, so queries may not reflect the most current data. ICICI Bank was also dependent on Teradata for support and other activities: The bank was completely tied down to that solution.

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 for its migration proof-of-concept: Sybase, SAS and Netezza. The primary criteria for evaluation was the price-to-performance ratio where Sybase IQ emerged the clear winner.  During this rigorous testing, Sybase IQ delivered faster results on independent hardware and operating systems with minimum infrastructure. Commending the improvements achieved, Amit Sethi, Joint General Manager, ICICI bank says, "What impressed us wasthat even with overall lower costs, we could achieve significantly better query performanceafter implementing the Sybase enterprise warehouse solution." ICICI Infotech today launched an enterprise resource planning (ERP) solution for the small and medium enterprises.

The ERP package - Orion Advantage - comes bundled with an HP dual processor Xeon server, Oracle 9i database, Windows 2003 server and costs about Rs 9.90 lakh and has a 15-user license.

13

An ERP package helps a manufacturer or any other business implementing it to manage all the important parts in the company such as product planning, parts purchasing, maintaining inventory and interacting with suppliers and customers.

ICICI Infotech officials told a press conference here today that Orion Advantage offered a set of business practice solutions for industry segments such as engineering, auto ancillary, pharmaceuticals, chemicals and IT distribution. Besides the cost advantage, the ERP package also came pre-configured. ICICI Infotech had mapped the processes specific to each industry segment into the package.

Mr. Manoj Kunkalienkar, Executive Director and President, ICICI Infotech, said that small and medium enterprises (SMEs) offered a good market and ICICI Infotech hoped to become a leading solution provider to this segment.

Mr. R.K. Kanthi, Deputy General Manager, ICICI Infotech, said there was no ERP package for the SMEs that bundled the server, database and operating system right now. That was the advantage ICICI Infotech offered to SMEs as Orion Advantage came bundled and pre-configured. Besides the high cost of generic ERP packages, their implementation time as far as SMEs were concerned was also long. Orion Advantage could be installed in 45 days.

ICICI Infotech had signed up six customers so far for the package and hoped to garner a 15 per cent market share of the SME segment, whose number in the country was estimated at 2.30 lakh.

Mr. K.S. Natarajan, Managing Director, Trident Pneumatics Pvt Ltd of Coimbatore, one of the companies that had installed Orion Advantage, said that the company had tried three other ERP packages, all of which had failed, before settling on Orion Advantage.

Mr Kunkalienkar said that ICICI Infotech planned to move the two development centers in Chennai into a single location and double the staff strength from 300 now in the next two years.

The Chennai centers were involved in research and development of Orion ERP solutions and Premia, an insurance package.

ERP Systems Integration

Pinnacle Software Solutions has the expertise and experience to assist you with your enterprise systems integration. From developing your strategy, through implementation and support, we bring the right combination of resources, management skillsets, and technical know-how. We will help you successfully integrate your Enterprise Resource Planning (ERP) systems into your overall business and technology infrastructure.

Whether you are planning an upgrade of an existing ERP system, or a complete replacement of a legacy application and platform, we can help you improve your financial, human resources, electronic mail, and other business systems. We work with the leading ERP systems, including the latest versions of the Oracle and PeopleSoft applications:

14

 General Ledger  Project Costing Accounts Payable  Human Resources  Accounts Receivable  Payroll Purchasing  Benefits Asset Management  Compensation

Our technology management solutions will help you migrate hardware platforms, improve network and database performance, develop or refresh policies and procedures, and develop sound disaster recovery and backup solutions. Please contact us to learn how Pinnacle Software Solutions can help you develop “solutions that fit” your enterprise.

ICICI Prudential Life Insurance Company Limited

ICICI Prudential life Insurance Company Limited was incorporated on 20th July 2000.The authorized capital of the company is Rs.2300 million and the paid up capital is Rs.1500 million. The company is joint venture of ICICI (74%) and UK based company Prudential Plc (26%). The company was granted certificate of registration for carrying business, by Insurance Regulatory and Development Authority on 24th November 2000. It commenced commercial operation from 19th December 2000 and becoming a leading private sector life insurance company.

The company recognizes that the driving force for gaining sustainable competitive advantage in this business is superior customer experience and investment behind the brand. The company aims to achieve this by striving to provide world class service level trough constant innovation in product, distribution channels and technology based delivery.

Vision and Mission

Their vision is to make ICICI Prudential Life Insurance Company the dominant new insurer in the life insurance industry. This they hope to achieve through their commitment to excellence, focus on service, speed and innovation, and leveraging our technological expertise.

The success of the organisation will be founded on its strong focus on values and clarity of purpose. These include:

 Understanding the needs of customers and offering them superior products and service  Building long lasting relationships with their partners

 Providing an enabling environment to foster growth and learning for their employees

And above all building transparency in all our dealings.They believe that they can play a significant role in redefining and reshaping the sector. Given the quality of their parentage and the commitment of their team, they feel that tere will be no limits to their growth.

Board of Directors

15

The ICICI Prudential Life Insurance Company Limited Board comprises reputed people from the finance industry both from India and abroad. 

Shri K.V. Kamath, Chairman Mr. Mark Tucker Smt. Lalita D. Gupte Mr. Danny Bardin Mrs. Kalpana Morparia Shri M.P. Modi Mr. John Caouette Shri S.P.Subhedar, (Alternate Director to Mr. Danny Bardin) Mr. Derek Stott, (Alternate Director to Mr. Mark Tucker) Smt. Shikha Sharma, Managing Director Management Team

Ms. Shikha Sharma, Managing DirectorMr. Kevin Wright, Executive Vice President - Sales & DistributionMs. Madhavi Soman, Chief - Strategic InitiativesMr. V. Rajagopalan, Appointed Actuary Mr. Sandeep Batra, Chief Financial Officer & Company SecretaryMr. Saugata Gupta, Chief - Marketing & ServiceMr. Shubhro J. Mitra, Chief - Human Resources 

Corporate Office:

ICCI Prulife Towers,1089, Appasahab Marathe Marg,Prabhadevi,Mumbai 400 025.Telephone Number: 022-462 1600Website : www.iciciprulife.com

ICICI Lombard General Insurance Company

ICICI Lombard General Insurance Company Limited is a 74:26 joint venture between ICICI Bank Limited and Canada based Fairfax Financial Holdings Limited. ICICI Bank is India's second largest bank, while Fairfax Financial Holdings is a diversified financial corporate engaged in general insurance, reinsurance, insurance claims management and Investment management. Lombard Canada Ltd, a group company of Fairfax Financial Holdings Limited, is one of Canada's oldest property and casualty insurers. ICICI Lombard General Insurance Company received regulatory approvals to commence general insurance business in August 2000.

Board Members

16

Mr K V Kamath, Chairman

Mr R Athappan, Director

Mr B V Bhargava, Director

Mr Dileep Choksi, Director

Mr James F Dowd, Director

Ms Lalita D Gupte, Director

Ms Kalpana Morparia, Director

Mr S Mukherji, Director

Mr Chandran Ratnaswami, Director

Mr H N Sinor, Director

Mr Sandeep Bakhshi, Managing Director & CEO

 Audit Committee

Mr. S Mukherji, Chairman

Mr. Dileep Choksi, Director

Mr. James F Dowd, Director

Mr. H.N. Sinor, Director

Investment Committee

Mr. Chandran Ratnaswami, Chairman

Ms. Kalpana Morparia, Director

Mr. Sandeep Bakhshi,, Managing Director & CEO

Mr. S Gopalakrishnan, Head – Investments

Mr. Rakesh Jain, Head-Finance & Accounts

Mr. Liyaquat Khan, Appointed Actuary

17

Board Governance Committee

Ms. Kalpana Morparia, Chairperson

Mr. Chandran Ratnaswami, Director

Mr. H. N. Sinor, Director

Retail Segment of ICICI Lombard General Insurance :

ICICI Lombard's Retail Segment consists of personal insurance products - Health, Home,

Motor and Travel insurances.

Health Insurance

ICICI Lombard is known to be a pioneer in introducing innovative concepts in the Indian health

Insurance sector. Be it the floater concept, the critical illness cover or the tax gain policy, all

these were first introduced by ICICI Lombard. It was also one of the first general insurance

companies in India to have a robust online system in place for buying and renewing policies.

The various plans offered by ICICI Lombard include Family Floater Plan - where one policy

covers the entire family, Health Advantage Plus - where they cover OPD and dental expenses,

also help save maximum tax under section 80D and Critical Illness plan - a special policy

covering a list of critical illnesses. They also have a basic Personal Accident Plan which covers

against accidents. ICICI Lombard health plans also provide coverage against terrorism.

Home Insurance

Home Insurance is actually one of the most neglected areas in the general insurance category.

Simply, because people in general, especially in India, do not give much importance to it.

However, in the recent years, due to the increase in awareness, and the great extent of damage

caused to property due to natural calamities and terrorism, it has been gaining importance.

The Home Insurance Policyoffered by ICICI Lombard covers both the structure and the contents

of the house. You can opt for either of the covers or both. Unlike other policies, it also covers

damage due to terrorist activities, loss of cash, public liability, temporary resettlement and

others.

Motor Insurance

As Motor Insurance is mandatory in India and is governed by the Motor Tariff Act, the policies

offered by various companies are more or less the same. There is not much room for innovation

18

in this category. ICICI Lombard too offers Car Insurance and Two Wheeler Insurance. They are

known to offer one of the best rates in the market. As the entire buying process is online and is

instant, without any submission of documents or other formalities, people generally opt it for

convenience.

Travel Insurance

Travel insurance is one of the most prominent sector of general insurance, especially overseas

travel insurance and student medical insurance. ICICI Lombard offers various options in both the

categories. The Overseas Travel Plans and Student Medical Plans offered cover medical and

non-medical expenses, including compensation for flights hijacked and pre existing diseases in

case of emergency. They charge on a per day basis if the travel is more than 7 days. ICICI

Lombard has tied up with United Health Group to facilitate access to all its clinics while in U.S.

The Student Medical Plans are accepted in almost universities worldwide. They also have a

section in their website, University Search, where one can find specific plans for specific

universities.

All the above retail policies can be bought online, without any documentation through their

website www.icicilombard.com .One can not only buy, but also manage and renew their

insurance policies online.

NRI Services

ICICI Lombard has developed insurance policies for Non-resident Indians that can be bought,

renewed and tracked online.

Parents' Health Insurance covers hospitalization and medical expenses incurred by parents of the

policyholder in India. For parents' travelling outside India, ICICI Lombard offers a Parents'

Overseas Travel Insurance policy.

An NRI can insure his children/ dependents travelling abroad to study, under the Student Medical Insurance plan. Likewise, the Home Insurance and Car Insurance schemes enables an NRI to secure his assets in India.

Channels

Channel is the term used for the various approaches a company uses to tap its customers. ICICI

Lombard uses a multi channel approach to ensure the sales, service and other allied activities are

carried out in the most effective manner.

Retail

19

The Retail channel consists of sales executves, sales officers, brokers and agents. They are the

one who are in direct contact with the customers and bring the innovative insurance solutions to

their doorsteps.

Online

ICICI Lombard has developed a web-based system to meet all the pre and post-policy

transaction. One can get quotes, buy, renew and track their policies online through the website

[www.icicilombard.com]. With the do-it-yourself architecture, the online channel is fast,

convenient, easy to understand and operate.

SWOT ANALYSIS

SWOT analysis is done for a company, to find out its overall Strengths, Weaknesses, Threats and opportunities leading to gauging the competitive potential of the company. The SWOT Analysis enables a company to recognize its market standing and adopt strategiesaccordingly. Here SWOT analysis of ICICI bank is made to understand the positioning of the bank better:

STRENGTHS

1. BRAND NAME: ICICI Bank has earned a reputation in the market for extending quality services to the market vis-à-vis its competitors. It has earned a strong Brand name in banking in a very short span of time.

2. MARKET SHARE: ICICI Bank has the largest market share of 34% in the IT & ITES industry in Hyderabad according to our survey (within the limitation of the sample size.)

3. HUGE NETWORK: ICICI Bank has the highest number of linked branches in the country. The bank operates through a network of 450 BRANCHES AND over 1800 ATMs across India, thus enabling them to serve customer in better way.

4. DIVERSIFIED PORTFOLIO: ICICI Bank has all the products under its belt, which help it to extend the relationship with existing customer. ICICI Bank has umbrella of products to offer their customers, if once customer has relationship with the bank. Some Products, which ICICI Bank is offering are: • Retail Banking • Business Banking • Merchant Establishment Services (EDC Machine) • Personal loans & Car loans • Demat Services with E-Broking • Mutual Fund (ICICI Bank is the Distributor of all Mutual Fund) • Insurance

20

• Housing Loans

5. SALARY ACCOUNT: One very interesting thing that we have observed in our survey is that ICICI is having an edge over other banks in case of Salary Account. Most of the companies are having their Salary Account with ICICI even if their Current Account is with any other Bank. This is mainly because of the huge network of ATMs and branches of ICICI.

6. WORKING HOURS: ICICI is the only bank which is having its working hours from 8 to 8 which is one of the major strength of ICICI Bank with respect to IT & ITES Industry. As most of the IT & ITES companies are global players and their Parent company is in US, so they have to work according to their office time. Thus some have their Office time in the morning and some have it in the evening so if the working hour of the bank is 8 to 8 it is very convenient for them.

7. TREASURY DEPARTMENT: ICICI is the only bank which is having its treasury department especially for Hyderabad Customers. So customers can get the best rates for foreign exchange.

8. AGGRESSIVE MARKETING: ICICI Bank is known for its aggressive marketing of its products. Recent Endorsement of its product by AMITABH BAHCHAN proves the same. This gives ICICI an edge over other banks.

9. TECHNOLOGY: From its inception, ICICI Bank has adopted a policy of selecting internationally proven and specialized Packaged Systems for its technology. ICICI banks technology platform has been acknowledged globally as one of the best in terms of robustness, flexibility and cost efficiency. ICICI Bank is in a position to leverage this platform to further build cost and service advantage.

WEAKNESS

1. TRANSACTION COST: ICICI Bank charges high cost for its transactions. Through our data analysis we have find out that most of the small companies prefer nationalized banks only because of this cost factor. Also the group has found out that there are companies which are going for multi bank system i.e. they are using only those facilities of ICICI Bank which are provided at cheaper rates (read Salary Account) and for other services they are going to nationalize banks and MNCs (read Forex). So there exists a huge potential for ICICI Bank if they are ready to make their transaction cost flexible.

2. FOCUS ONLY ON HIGH END CUSTOMERS: The bank targets only the top bracket of clients and does not cater to the needs of small customers. Due to this reason the bank may sometimes loose good clients.

21

3. DEFENSIVE APPROACH IN LENDING: ICICI Bank has a defensive approach in lending. Mainly to IT & ITES companies Bank do not provide loan as these companies are not having collaterals so bank hesitate in giving loans to them. Because of this policy companies prefer nationalized banks and ICICI Bank in turn sometimes loose potential customers.

4. LITTLE PRESENCE OUTSIDE INDIA: ICICI Bank is having little presence Outside India, because of which companies are preferring MNC Bank, mainly Citibank. So if ICICI Bank tries to emerge outside India then it has a huge potential of customers.

5. POOR CUSTOMER CARE/SERVICE: With its aggressive marketing ICICI Bank is rapidly increasing its customer base. They are not however, increasing the number of employees accordingly. This is leading to deterioration of the standard of customer service.

OPPORTUNITIES

1. NEW IT & ITES COMPANIES: IT & ITES sector is on a boom in the Indian market context, with new companies mushrooming in the market; it opens the door for ICICI bank to capture the huge untapped market.

2. Dissatisfied Customers of Other Banks: The group from its survey and analysis of IT companies have found out that there are many companies which are not satisfied with its current bank, so ICICI with its superior service quality and long working hours can capture those customers.

3. Remittances: From the analysis group has also found out that ICICI bank has very little presence as far as the EEFC account is concerned. Companies prefer to bank with MNCs (which have greater presence in the foreign countries) and nationalized banks (which according to the companies provide lower transaction rates) to get their inward remittances in spite of ICICI being providing one of the most competitive rates. So the bank can promote its EEFC account better and get the key to the door of huge potential market.

4. Business advising for smaller Players: The analysis has also indicated that the concept of business advising though very popular with the higher end players is virtually non existent in the lower end of the market. ICICI should take this opportunity to provide business advising to the smaller companies at competitive rates and try to take the first mover advantage.

THREATS

1) Advent of MNC banks: Large numbers of MNC banks are mushrooming in the Indian market due to the friendly policies adopted by the government. This can increase the level of

22

competition and prove a potential threat for the market share of ICICI bank.

2) Dissatisfied Customers: The analysis indicated that though most of the companies are satisfied with the products offered by ICICI bank but the poor customer support/ service is creating a lot of dissatisfaction among the customers, this can prove to be a serious problem as far as the market reputation of the bank is concerned and cane be a major threat in future business acquisition.

3) Ever improving nationalized banks: With PSU banks like SBI going all out to compete with the private banks and government giving them a free hand to do so, it can prove to be serious threat for banks.

4)ICICI Bank has been in focus in recent years because of alleged harassment of customers by its

recovery agents. Listed below are some of the related news :

Farmers vent ire on bank after suicide. ICICI Bank officials used goondas to seize the

tractor

ICICI Bank was fined 55 lakh Rs. for hiring goons (known coloquially as "goondas") to

recover a loan. Recovery Agents had ,allegedly, forcibly dragged out a youth (who was

not even the borrower) from the car, beaten him up with iron rods and left him bleeding

as they drove away with the vehicle. "We hold ICICI Bank guilty of the grossest kind of

deficiency in service and unfair trade practice for breach of terms of contract of hire-

purchase/loan agreement by seizing the vehicle illegally,""No civilised society governed

by the rule of law can brook such kind of conduct" said Justice J D Kapoor, president of

the commission.

4 loan ICICI employees arrested on theft charges in Punjab

ICICI Bank told to pay Rs 1 lakh as compensation for using unlawful recovery methods.

RBI warns ICICI Bank for coercive methods to recover loans

ICICI Bank drives customer to suicide- Four men including an employee of ICICI Bank

booked under sections 452, 306, 506 (II) and 34 of IPC for abetting suicide. As per

suicide note they advised him - "If you cannot repay the bank loan, sell off your wife,

your kids, yourself, sell everything at your home. Even then if you cannot not pay back

the due amount, then it's better if you commit suicide."India biggest private bank has

compensated the life by money

23

ICICI Banks on huge car recovery scam in Goa - ICICI Bank invest in car-jackers to

recover loans in Goa.

Family of Y Yadaiah alleged that he was beaten to death by ICICI Bank’s recovery

agents, for failing to pay the dues. Four persons were arrested in this case.

A father while talking to Times of India, alleged that "The ICICI Bank recovery agents

visited his house and threatened his family. And his son Nikhil consumed poison because

of the tension".

Oppressed by ICICI Bank's loan recovery agents, Shakuntala Joshi (38), committed

suicide by hanging herself. Suicide note stated that she was upset with the ill-treatment

meted out by ICICI Bank recovery agents and had thus decided to end her life.

In another case of a suicide it is alleged that ‘goondas’ sent by ICICI Bank abused

Himanshu and his wife in front of the entire colony before taking away his vehicle.

Feeling frustrated and insulted, he reportedly committed suicide.

CLN Murthy, a scientist with the Hyderabad-based Indian Institute of Chemical

Technology, was allegedly tortured by recovery agents of ICICI Bank after he defaulted

on his loan."They humiliated me no end. They ripped my shirt, shaved my moustache,

cut my hair and gave electric shocks on my chest and even spat on my face" adds

Murthy.

A dozen recovery agents of ICICI Bank, riding on bikes, allegedly forced a prominent

lawyer, Someshwari Prasad, to stop his car. They held Prasad at gunpoint and also

slapped him to force him. A manager of the ICICI branch, Rakesh Mehta, along with four

other employees were arrested.

A recovery agent allegedly working for ICICI Bank was injured in an exchange of

gunfire with Lucknow police. Police said that the miscreants opened fire at the police,

who returned fire. The agent, along with three others, was trying to escape after allegedly

stealing cash and a cheque from the defaulter.

In a landmark case Allahabad High Court had ordered registration of an FIR against

ICICI Bank branch manager, President, Chairman and Managing Director on a complaint

of 75-year-old widow Prakash Kaur. She had complained that "goondas” were sent by the

24

bank to harass her and forcibly took away her truck. In same case when the Supreme

Court wanted to know about the procedure adopted by the banks, ICICI Bank counsel

said notice would be sent to a defaulter asking him either to pay the instalments or hand

over the vehicle purchased on loan, failing which the agents would be asked to seize it.

When the Bench pointed out that recovery or seizure could be done only legally, ICICI

Bank counsel said, "If we have to go through the legal process it would be difficult to

recover the instalments as there are millions of defaulters".

Taking strong exception to the ICICI Bank's use of 'goondas' against a defaulter,

Consumer Disputes Redressal Forum president said, "The fact leaves us aghast at the

manner of functioning and goondaism in which the bank is involved for a petty amount

of Rs 1,889... such attitude is deplorable and sends chills down the spine....The bank had

the option to recover dues through legal means. They have no legal right to snatch the

vehicle in such a manner which amounts to robbery,". In this case recovery agents

pointed a pistol at defaulter when he tried to resist. ICICI Bank argued that they had

taken peaceful possession of the vehicle "after due intimation to the complainant as he

was irregular in remitting the monthly instalments". But the court found out that the

records proved otherwise.

Two senior ICICI Bank officials were booked for abducting one Vikas Porwal from his

house and keeping him hostage in the bank premises.

The credit card division of the ICICI Bank allegedly threatened a senior citizen in

Chandigarh with a fictitious arrest warrant on account of a default that never was.

Consumer Commission has asked ICICI Bank MD K V Kamath to personally appear

before it in respect a complaint. Borrower on protesting the forceful dispossession of car,

as seen in the post-incident photographs, was roughed up and sustained the injuries.

An 18-year-old boy was allegedly kidnapped and detained at the Pune branch of ICICI

Bank.

There have been several other minor legal cases accusing harassment by ICICI Bank

The consumer court imposed a joint penalty of Rs 25 lakh on ICICI Bank and American

Express Bank for making unsolicited call.

25

Factor for success of ICICI bank:

ADVANTAGE FOR INDIAN COMPANIES

ICICI Bank UK is the only banking subsidiary among Indian banks that is locally incorporated in the UK. It provides cross-border loans to joint ventures and wholly owned subsidiaries of Indian companies. This helps the Indian companies to secure loans from this UK bank, thereby allowing them to increase their presence in EU. The bank facilitates Indian companies in procuring trade finance, letters of credit or project finance for their business ventures in the EU.ICICI Bank has been able to capture 70 per cent of the M&A cross-border deals of Indian corporate in the UK. The key acquisitions made by the bank are follows:

Acquisition of Typhoo tea from premier foods by Ape jay surrender group, India for Us$ 147 million.

Acquisition of ICI subsidiary Bruno mond by Tata chemicals for USD 185 million.LEVERAGE NON RESIDENT INDIANSICICI Bank has strategically set up operations at locations where the population of Non-resident Indians (NRIs) is high. ICICI Bank provides NRIs the facility of transferring funds to ICICI Bank accounts in India in an efficient and cost-effective manner. The substantial Indian population in the EU (especially the UK) has facilitated the rapid growth of the bank there. It offers personal and corporate banking services, as well as specialist services such as India mortgages to the Asian community. ICICI has a market share of over 20 per cent in the UK to India remittance market.

SYNERGY WITH INDIAN OPERATIONSICICI Bank outsources both low-end and high-end operations to India from the EU, thereby saving as much as 70 per cent. These savings are passed on to the customer in the form of higher interest rates on deposit products. In May 2005, ICICI launched an online savings account product, HiSAVE.The product is built on the concept of housing all operational and service processes on the main ICICI Bank internet platform in India. This concept was an immediate hit, resulting in widespread consumer interest. During the coming year, the product is slated to attain critical mass in terms of market share, with a large balance sheet in the range of EUR 1.5-2.3 billion. This marked the first entry of an Indian bank into the EU mainstream retail financial services market.

ORGANIZATION STRUCTURE: An organization needs to be dynamic, constantly evolving and responsive to changes both in the external and internal environments. ICICI structure is designed to support his business goals, and is flexible while at the same time ensuring effective control and supervision and consistency in standards across business groups. The organization structure is divided into five principal groups – Retail Banking, Wholesale Banking, Project Finance & Special Assets Management, International Business and Corporate entre. The Retail Banking Group comprises ICICI Bank’s retail assets business including various retail credit Products, retail liabilities (including our own deposit accounts as well as distribution of third part liability products) and rural micro-banking. The Wholesale Banking Group comprises ICICI Bank’s corporate banking business including credit products and banking services, with separate dedicated groups for large corporate, Government and public sector entities and emerging corporate. Treasury, structured finance and

26

credit portfolio management also form part of this group. The Project Finance Group comprises our project finance operations for infrastructure, oil & gas, manufacturing and shipping sectors. The Special Assets Management Group is responsible for large non-performing loans and accounts under watch. The International Business Group is responsible for ICICI Bank’s international operations as well as coordinating the international strategies and alliances of its subsidiaries and affiliates. The Corporate Centre comprises all shared services and corporate functions, including finance and secretarial, investor relations, risk management, legal, human resources and corporate branding and communications.

BUSINESS REVIEW:

RETAIL BANKINGThe retail business is the key driver of ICICI Bank’s growth strategy, with the objective of diversifying the asset portfolio and building a low-cost stable resource base. With a complete product suite across both asset and liability products as well as a wide range of banking services, ICICI Bank is today a retail financial supermarket with the ability to cross-sell the entire range of credit and investment products and other banking services to our customers.The key dimensions of retail strategy are products, channels and processes, underpinned by a strong customer focus. Changing demographics and the trend towards upward migration in income levels coupled with existing low retail credit penetration levels have created a major growth opportunity in retail finance. ICICI Bank’s retail assets business is capitalizing on this opportunity with a competitive positioning and strategy comprising innovative products, wide distribution, strong credit controls and high customer service standards and rapidly growing volumes in each segment to achieve economies of scale. In the mortgages business, we expanded our reach to more than 140 locations across the country. We were the first to introduce adjustable rate home loans, with interest rates linked to a floating prime lending rate. This product received excellent response from customers across the country and was a key driver of growth in the mortgages segment.

CORPORATE BANKINGICICI Bank’s corporate banking strategy is based on providing customized financial solutions to clients, tailored to meet their specific requirements. The corporate banking strategy focuses on careful management of credit risk and adequate return on risk capital through risk-based pricing and proactive portfolio management, rapid growth in fee-based services and extensive use of technology to deliver high levels of customer satisfaction in a cost effective manner.

TREASURYThe principal responsibilities of the Treasury include management of liquidity and exposureThe principal responsibilities of the Treasury include management of liquidity and exposure to market risks, Mobilization of resources from domestic and international financial institutions and banks, and proprietary trading. Additionally, the Treasury is leveraging its strong relationships with financial sector players to provide a wide range of banking services in addition to its liability products. The Treasury is also responsible for ICICI Bank’s capital markets and custodial services operations.

HUMAN RESOURCES:

27

ICICI Bank views its human capital as a key source of competitive advantage. Consequently the development and management of human capital is an essential element of our strategy and a key management activity. Human resources management in fiscal 2002 focused on smooth integration of the employees and human resource management systems in the context of the merger, as well as on continuous improvement of recruitment, training and performance management processes. The process of integration involved defining the organizational structure of the merged entity, people placement in various positions across the business and corporate groups, and integration of the grade and remuneration structure for the employees of the four entities. The organizational structure was announced in February 2002 and became effective on May 3, 2002. The people placement process was based on appropriate competency profiling tools and matching employee profiles to job specifications. The grade integration process has also been successfully completed, using job evaluation techniques. While ICICI Bank is India’s second-largest bank, it had just over 7,700 employees at March 31, 2002, demonstrating our unique technology-driven, productivity-focused business model. The recruitment process has been streamlined and a uniform recruitment policy and process implemented across the merged organization. Robust ability-testing and competency-profiling tools are being used to strengthen the campus recruitment process and match the profiles of employees to the needs of the organization. ICICI Bank continues to be a preferred employer at leading business schools and higher education institutions across the country, offering a wide range of career opportunities across the entire spectrum of financial services. In addition to campus recruitment, ICICI Bank also undertakes lateral recruitment to bring new skills, competencies and experience into the organization and meet the requirements of rapidly growing businesses. A Six Sigma initiative has been undertaken for the lateral recruitment process to improve capabilities in this area. ICICI Bank encourages cross-functional movement, enriching employees’ knowledge and experience and giving them a holistic view of the organization while ensuring that the bank leverages its human capital optimally. The rapidly changing business environment and the constant challenges it poses to organizations and businesses make it imperative to continuously enhance knowledge and skill sets across the organization. ICICI Bank believes that building a learning organizationis critical for being competitive in products and services and meeting customer expectations. ICICI Bank has built strong capabilities in training and development to build competencies. Training on products and operations is imparted through web-based training modules. Special programmes on functional training and leadership development to build knowledge as well as management ability are conducted at a dedicated training facility. ICICI Bank also draws from the best available training programmes and faculty, both international and domestic; to meet its training and development needs and build globally benchmarked skills and capabilities. ICICI Bank seeks to build in all its employees a total commitment towards exceptional standards of performance and productivity, adaptability to changing organizational needs and the demands of the business environment and a willingness to learn and acquire new capabilities. ICICI Bank believes in defining clear performance parameters for employees and empowering them to achieve their goals. This has helped to create a culture of high performance across the organization. ICICI Bank also has a structured process of identifying and developing leadership potential. The focus on human resources management as a key organizational activity has resulted in the creation of an exceptional pool of talent, a performance-oriented organizational culture and has imparted agility and flexibility to the organization, enabling it to capitalize on opportunities and deliver value to its stakeholders.ORGANIZATIONAL EXCELLENCE:

28

ICICI Bank recognizes the importance of organizational excellence in its business. Developing and deploying world-class skills in a variety of areas such as technology, financial engineering transaction Processing and portfolio management, credit evaluation, customer segmentation and product design, and building and maintaining deep and enduring relationships of trust with our retail and wholesale customers are essential elements of our strategy.Different businesses across the ICICI group have over the past few months used successfully the Six Sigma methodology to focus on customer satisfaction and enhanced efficiency in operations. Application of Six Sigma techniques in regional processing centres, branch layout and design, and the home finance and demat services businesses have reduced turnaround time and significantly improved operational efficiency. In recognition of the critical importance of excellence in internal processes and delivery to customers, we have set up an Organizational Excellence Group headed by a Senior General Manager reporting to the Managing Director & CEO. This group will be responsible for institutionalization of quality initiatives, including Six Sigma, and for building the skills necessary for implementing and accelerating quality initiatives, reporting to the management the progress and value generated from these initiatives and replicating the successes across ICICI.

OBJECTIVES

The overall objective of the whole summer internship program was to make our self confident enough to fight against all the pressure that we will have to face during the rest of life in the real world. However I have tried to segregate the objective of the whole summer internship in three different heads and that is-: a) objective by faculty guide, b) objective by company guide, c) objective as an intern.

Objectives by faculty guide:

The objective with which our faculty guide has set up the summer internship program in the company “ICICI BANK LIMITED” are:-

To make the interns well aware with the present market scenario.

To make the interns learn the art of selling and marketing of an intangible product. To make the interns get familiar with the working culture of the corporate and make them

well accustomed with the corporate culture too. To make the interns feel the difference of the in house training and the on job training. To make the interns implement their class room learning in the real market and achieve

their targets.

Objectives by company guide:

The objective with which the company guide has selected us as his intern and associates of the bank as well as life insurance and general insurance product by the ICICI bank, ICICI Prudential and ICICI Lombard company are:-

29

To make the interns perform the lower level task first in an well organized manner, in a manner that the manager does.

To make the interns learn the ground level work first.

To make the interns work hard now so that they don’t find difficulty in performing the same work or any similar kind of work in the future.

To make the interns learn the process of judging a person capability and accordingly convince him either for the target of recruitment or to convince him and make him a policy holder.

To make the interns work hard to qualify a target that’s worth enough to qualify him for the higher post in the organization.

Objective of the intern:

The objectives with which I have opted for this particular life insurance company are as follows- To learn about the importance insurance in the lifespan of a human being To educate people and also spread awareness about the importance of life insurance,

health insurance, general insurance in the country. To apply all the skill that is there present in me with respect to the marketing and sales

promotion. To experience the real life scenario and mould myself in the same manner so that I will

not face any problem in future. To fulfill the target given by the company guide as well as by the faculty guide in the

given period of time. To get the Pre Placement Offer(PPO) given by the ICICI BANK LTD.

TARGET AND TASK ASSIGNED

The task that was assigned to us is separate from what we use to get from the college and from the company guide. The target that was given from the college that is from our faculty guide was fixed and that was policy worth Rs.50000 /- but our company guide assign the target of Rs.100000/- per week and 5 policy of the systematic investment plan worth of minimum Rs.5000/- per week.

However the targets assigned to us from the company guide fixed every week. From 30 th March

2009 starting of our summer internship program we were given training for first two week and working for the lead generation by colleting customer database. Then after the first two week I had gone for the follow up with the customers which data was collected by us from the first two week.

30

ACHIEVEMENT Vs TARGET

After the starting of the summer programme for we were given training about the different type of product then I had started the market survey collected about the than from the third week I had to follow up with different customer of different segment and pitch different type of product. For

the first four week I had not get any customer in the fifth and sixth week I get customer.

Weekly experience-:

Week1-:

Training about the different type of product like Life Insurance products. The first day was an induction program by the trainer appointed by the company. The trainer gave us all the information regarding the company profile, and the answers to some common question faced during the time of policy selling like-:

What is life insurance? Why do I need life insurance? What is the benefit of opting for riders / add-ons? How will the Net Asset Value (NAV) be calculated for my servicing requests? And others.

Week2-:

Day1-

In this day I had reported the bank at 9.30am then I had gone for the market survey and I had collected the data of 12 customer and in the second half and we had trained for the systematic investment plan .from all the collected data of 12 customer only 3 customer were show some interest on the product and give time for another day to visit their house. When I met them in the next given date the people had told me that they don’t want to take the policy because of the current market situation and high premium amount.

Day 2-

In this day again I had gone for the survey of the customer in the fertilizer township area .I get the data of about 16 to 18 customer. Then from after that week I regularly follow up all the customer.

Day 3-

In this day I had gone for the follow up with the customer data which was collected by meet all the customer.

31

Day 4-

The fourth day of there was training was all based on the role play and tele-calls. The trainer showed us the different ways to make cold calls to the customers and made us understand how to make an approach to the customer. A per the trainer we should always create a need for the insurance because everyone in the world if afraid of the uncertainties which cannot be avoided but no one is prepared for the future.

We were also given training on the market investment pattern of the company by the fund manager and also about a product that day and those were-: SMART KID-a unit linked plan.

Day 5-

The fifth day of there was again review training was all about the different types of the products that the company deals in. they are-:

Crisis plan. Hospital care. Life stage. Riders. Concept of combo plan.

He made us understand all the features of the products and the benefits that the customer can avail by taking this plans.

Week4-:

Day1-

I had a conversation with my company guide about the target (one policy of worth Rs. 100000) given in the last week. I talked about the details of my client and how I have approached and convinced my client to buy our product (policy). I also talked about some other clients who are in pipe line and interested for the policy. I also discussed about the queries that I have faced while delivering our products in the market with my company guide.

Day 2-

In this day again I had gone for the survey of the customer in the fertilizer township area I get the data of about 26 customer.

Day 3-

Personally I have visited to some of my customers to whom I have made a call over telephone. In

the evening, I met with my friend and created a database of customers.

32

Day 4-

Again, I have visited to same customers and also done some tele calling to some new customers.

Day 5-

On this day, again I have done some field work i. e. by personally visiting with the customers. I also talked with my neighbors and tried to convince for our product.

Week5-:

In this week I had take permission from my company guide and go for the Sambalpur market and I had collected data of customer and I get a customer who takes the policy of Rs.20000/-and he gave me his all required document for the policy on the very next day.

Week6-:

In this week I had take reference of my cousin and move to the Kansbahal with him and I collected 20 data of customer and I get a customer and he took the policy of Life stage assure of amount Rs.20000/-

Week7-:

In this week I had visited to Sambalpur and I had met with 15 prospect then I had come to Rourkela and done regular follow up with the lead generated by me and this week I didn’t get any customer but I had get assurance from two customer for taking the policy.

Week8-:

In this week I had again visit to the Sambalpur and Jharsuguda market and I had visit the Shyam DRI of Jharsuguda, Bhusan steel plant and Ultratech cement factory where I get a customer for the mutual fund plan for about Rs.10000/- and I had generate the lead of about 65 people of different factory.

Week9-:

In this week we have assign a work to recruit new financial consultant (FC) for this week we had circulate our advertisement to different educational institute like Cnet, INC RKL, Aptech computer institute, Unitech computer institute, HCL CDC, NIIT etc. From this advertisement we had get a huge response for all the advertisement. In this week we had generate the lead of about 25 people and we had done regular follow up with that lead and I had get two customer who take policy of total amount of Rs.60000/-(LSA) and I had get two more reference from that customer.

33

Week10:-

In this week I had started my work with tele calling from the existing leads and I have get appointment from many customer and I had visit them regularly. I had get two policy from the existing lead of amount Rs.40000/- (LSA) and another one of amount Rs.12000/-(SIP).

Week11:-

In this week once again visited to Sambalpur and I had get three customer with total amount of Rs.80000/- [40000(LSA) +20000(LSA) +20000(MF)] and I had generate the lead of 13 customer and I had started regular follow up with that leads.

Week12:-

In this week I had started my work with follow up the leads and I had get two customer from my cousin brother and I visit the house of that prospect and I had a policy of Rs.70000/-(LSA) and Rs.6000(SIP) and I had plan to target the prospects from the existing lead.

This is a chart showing the cumulative targets as well as achievements of all the weeks.

Particulars College target

Achievements

Week 1 50000 TrainingWeek 2 50000 TrainingWeek 3 50000 TrainingWeek 4 50000 Training Week 5 50000 20000Week 6 50000 20000Week7 50000 NilWeek8 50000 10000Week9 50000 60000

Week10 50000 52000Week11 50000 80000Week12 50000 76000Week13 50000

34

(from week1 to week6)

(from week 7 to week12)

STRATEGY

The target is surely assigned by the company guide and the faculty guide. However the mode and the path selected to achieve the target in the given period of time is chosen by us. To achieve the target given we need to have a mind set and a specific plan, cause a destination with an undirected and unfocused mind leads now where. So to achieve all the target assigned I have prepared certain strategy which are as follows -:

35

a) Strategies made for the policies-: The main target and the main focus which is expected from us and is also given to us is the sale of the policies. There are different polices in the company that is available for us to sell like SMART KID PLAN, LIFESTAGE PENSION PLAN, LIFE STAGE REGULAR PREMIUM, LIFE GOLD, HEALTH PLANS( crisis cover and hospital care), LIFE TIME SUPER PENSION PLAN, LIFE LINK SUPER.GENERAL INSURANCE.

To sell all this plans which have a different role and different premium amount the first thing that I need to see is who my targeted customers are . The strategies that I am following for the generating a lead and the appointment are as follows-:

The first and the foremost practice that I plan I had targeted different area of the Rourkela by collecting data from survey of the market.

I have also planned up to target all the industries that are nearby and in the city itself. I have tried and contacted the directors of two companies till date.

I have asked my colleagues in the previous office to provide me with some leads that is from a different state.

I have contacted the local vendors and the shopkeepers whom I regularly visit; from them also I have generated some leads.

Now the next job that needs to be done is the trying to get an appointment and convince them for the policy. For that I have thought of segregating the customers as per the plans that are there with us. So my strategies with respect to different plans are-:

Strategy for SMART KID

The first plan that I am focusing is on the SMART KID and for the sale of this plan the strategy that I have implemented is I have contacted some of the private tutors in the area who can provide me with the information of the children and their parents. I collect all the data regarding the Childs family and accordingly I make an approach the family.

The next place from where I can target the children is the place where they are born that is the hospitals and the nursing homes. I make a link with the reception and the doctors and collect all the information regarding the newly born child. Once when I get the information I start my work.

I have also contacted the auto drivers and rickshaw pullers to give the information regarding the children.

Strategy for Health plans (hospital care and crisis cover)

For this particular plan first of all I can approach directly to the customer because the premium amount of this plan is very less and these are the only plan that covers the medical and hospitals charges of a person.

For this plan I have again contacted the industries where there is a high risk involved in working there. Even if the company provides them with the medical insurance I still go ahead and make them understand about the plan, because if a person is insured under any

36

other medical claim policy still he/she is eligible for the reimbursement of the full amount that he/she is suppose to get under the desired plan.

For this plan I have also tried and contacted the medical stores asking them if they any database of customers who visit them. The reason I ask them for this is because the shopkeepers write the address of the customers in the cash memo they prepare while giving it to the customers.

For getting the data I have also take help from my colleagues.

Strategy for life stage pension, life time super pension plan, life time assure, lifetime gold

These are plans which attract the people those who are salaried ones. The one who have either the zeal of saving their money for future or for the one who have an interest of spending their money to earn more. So, for these particular set of people I have a different strategy.

For this plan also the first and foremost priority are the people working in the industries. With the view of and investment and saving plan I propose the people these plans for their future safety. As because some of these plans provide both insurance as well as are kind of investments they easily attract the people in this particular sector of employee level people.

One of the plan is kind of mutual fund in them. As because the allocation charge is 100% and the plan also provides a tax redemption for both the premium and the maturity amount. So with this particular plan I approach to the people who say that they already have insurance. So, all I say them is that this plan is an investment plan and not an insurance.

There is another plan among these that gives a high return and also provides all the same benefits as the above one except that the allocation charge is not 100%. So for this particular plan I approach the business class people who are not interested in the way there money is utilized, all they want is that the money which they spend needs to be appreciated in a short term.

For the plan I also approach those people who have both insurance as well as invested money. To them the dream I show is the name of the palm that is the PENSION and the high returns. With these plans the company provides the person with a debit card of ICICI bank so that at the time of withdrawing their pensions they have an easy access and an easy options.

Strategy for the motor insurance plans-:

Motor insurance is generally provided by the ICICI LOMBARD INSURANCE LTD. This insurance company is a joint venture of the ICICI bank and Fair fax holding company. This company gets permission from 2001 to operate their business plan in India. This company works

37

for the insurance purpose of the two wheeler, private car, Passenger car, goods carrier, miscellaneous D, contractor plant and machinery. For this product I have planned this thing:-

First I have collected the data from the old vehicle owner who didn’t renew their vehicle insurance.

Then I have contact some show room but they told me that they had already tie up with another insurance company.

In the next step I have collected the data of 65 company at present running in Rourkela then I have contacted the director and other person of the company give knowledge about the product.

Strategies with post sales service-:

The best strategy to keep up a good name is provide a good name in the market by providing the post sales service to the customer. For this what I do is-:

If suppose when I am on a call and the person says he/she already has a policy with ICICI PRUDENTIAL and has some queries with fund then I try to solve it out. If they want me to check out their policy report I even try to convey the message to the operations department.

I have also come across people who say that they have no idea about their fund value as of that date, so I educate them with the procedure they can easily get to know about their fund value.

I have deposited some of the premium amount of some of the customers of the company who are not my client and also suggested them that they can give a request in the form that the premium money can be charged and directly taken from their bank accounts, because there is an option in the form to do so for the convenience of the customers.

I have also planned for the procedure of recovering the maturity amount as fast as possible for the people who deserve the money. For the customers who are suppose to get the sum assured amount as promised to the customers, who are due to get the money because of some mishap. What I thought of is to build a good and healthy relationship out of the deeds of some other person free of cost.

I have also thought of visiting people who have already received their full maturity amount or are yet to receive it and try and convenience them for policies once more.

Strategy to fight against the competitors-:

The biggest threat to all my plans and strategies are the competitors which include the entire one like the other insurance companies, other investments companies and the biggest ones the

38

agents/advisors of ICICI PRUDENTIAL itself. So to fight with them in a non violent manner I have made some strategies and they are-:

I have made a study on the plans of some of the others insurance companies’ plans and found that the allocation charges are very high for the company as compared to ICICI. The reason being to increase their sales they have increased the commission part of the advisors deducting a huge amount of money from the premium that their customers pay them. So I just the same to the people when some of my clients say that they get an extra return from the advisor himself when they go for a policy with them.

The next competitors are the banks and post office. For them what I suggest the client is that maybe they have a fixed return which they show is the merit that they give but according to me that is the biggest demerit that they give. The reason being in today’s world where the market is so volatile one cannot keep up looking for a fixed return rather they should go for a bit risky platform to earn more out of their own investments.

Mutual funds and the other investments companies have the same strategy of providing high returns but they don’t have facility to provide insurance to their clients and neither do they provide tax befits with the lump sum of the maturity amount.

MID COURSE CORRECTION

When I started my SIP in ICICI Bank LTD. I was assigned the target of Rs.100000/- and my job was to sale Life Stage Assure and Smart kid plan only. So the limitation was that I didn’t have any variety of plans to sale. I was also asked for whether general insurance can be done through me or whether I can open account. ICICI is big concern and people are awared of it and when they ask for different product I was unable to serve them as I was not allowed to deal with other products. So I requested to my company guide Miss.Koel Ghosh to allow to for other product also, so that I can cover all the segment of people which will be beneficial for both me and my company.

I am grateful to Miss.Koel Ghosh who very kindly allows me to sale other product also. Now I deal in life insurance, general insurance like for vehicle, health plan, pension plan etc.

From the week number 8 our company guide had changed and we had introduced with our new company guide Mr. Birendra Sharma and from the day of beginning he had gave our his total experience and also different type of innovative ideas .He suggested us to do market survey for this we had done a daily basis market survey from the ICICI ATM counter which is very close to the bank from that survey we had try to built customer relationship from that survey we were able to know about the customers perception towards the banking service of ICICI Bank Ltd. From this survey I had get a customer for the SIP product of the company. After all that we had get a lead of about 30-35 prospect. Than our company guide Mr. Sharma suggested us to work in a team and we had get lot of success from this strategy then after all this strategy the newly recruited boys and girls assigned with different type of work like the girls Financial Consultant

39

have to call the prospects and we have meet that prospect in their given appointment time. After all this we had made a survey in the BSNL office where we ask the employee about their view for ICICI Bank than we had made regular follow up with that lead which is generated from that survey. Our new company guide always give his full support to us for achieving our target and if we had get any problem in convincing the customer than he also go with us to visit the customer.

LIMITATIONS

With all the pressure that to is excreted on us during the summer internship program there are also many limitations that we face on the daily basis that creates a lot of frustration in the mind. The limitations that we face are-:

The first and the biggest problem that a student has to face is the transportation which is really problematic because there are some places where the buses and the auto do not go, so to reach to the client we have to depend on our own foot which becomes really frustrating of the client does not turns up.

The reference providers have to be first convinced a lot them only we can move further with our plans which is again a bit pressurizing.

Sometimes we have to handle customers who are either stubborn or they have no knowledge about the insurance and ULIP plans. They term both the insurance and the ulip plans as the same thing.

We also face a problem with the timing as because all the customer generally call up at the evening hours due to their own work and managing all more than four customers in the same evening.

Now it’s again becomes a problem when sometime we come across people who have a lot of knowledge regarding the product.

LITERATURE SURVEY FOR ICICI BANK LTD.

Mr K. V. Kamath is the Managing Director and CEO, of ICICI Bank Limited

PwC: How would you describe the current economic outlook? And what will be its likely impact on your business?

K.V.K.: India is undergoing a long run structural growth. Many other economies have gone through the same process. For instance, 50 years back it was Japan that saw double digit growth for 20 years. And then it was the four Asian Tigers: Singapore, Hong Kong, Taiwan, and South Korea. After that, it was China – which is still going strong with double digit growth. Long-term structural growth leads to economic transformation. Economies transform from a developing status to an emerging one. That’s what is happening now in India. Maybe we didn’t understand this change earlier, but now we see it from closer quarters. One major ‘structural’ difference

40

between India and the economies that I just mentioned is that in our context, growth has been led by knowledge and service industries, whereas in the case of the other economies, change was led by manufacturing industries. But in India, manufacturing is fast catching up. As the knowledge and service sector grows, so does the demand for goods. More people want homes – and homes require steel, cement, glass and the transportation equipment to deliver these materials. So, since about 2002, we’ve seen the manufacturing sector gathering momentum. In fact, we estimate that about US $700 billion will be invested in the manufacturing and infrastructure sectors over the next two to two-and-a-half years. For India, we typically apply an incremental capital-output ratio of ‘four’ meaning that investments worth US $700 billion will generate between US $175 - 200 billion worth of actual production during a given year. That represents a 20 per cent boost to the Indian GDP. Of course, that won’t happen in one go. But it will happen over the next two to three years. But is there a pipeline of investment funds for the long term? That is not clear. When I speak to my customers, I find that many are reassessing their long-term investments, especially for new projects. And that’s largely due to the inflationary conditions, commodity price hikes, interest rate hikes, etcetera. Today, corporate profit is strong in India – but it is not certain what tomorrow will bring. My own assessment is that the any pull back on investment will be a short-term phenomenon. Corporate India is still in the mood to invest, whether domestically or abroad. We will know the long-term situation based on the next two to three quarters of corporate profits. If profits come under pressure, then you have a challenge. But I don’t think corporate profits will come under pressure. The pressure on profits previously experienced by corporate India has stemmed from rising operating expenditures. But today operating expenditures are coming down what with the fall of oil prices, commodity prices, and other input costs. Of course, like businesses everywhere, corporate India will have to ensure the cost of human input does not become too high or difficult to manage. We are far away from that situation now, nevertheless corporate India – particularly the white-collar sector – is conscious that it must become more efficient. Some developments over the last one-and-a-half years make us believe that IT-ITES companies are recruiting, compensating and rewarding their employees quite differently. Just-in-time recruitment is one such example. Other industries, including ours, must follow suit. If the country is growing at 10 per cent per annum, we think that the financial services business will grow at two-and-a-half to three times that. That’s the growth environment for which ICICI Bank will plan.

PwC: Will the current global financial meltdown have an impact on India?

K.V.K.: The current global crisis will have an impact on India. But we are not closely interlinked with the global markets. Whether it is manufacturing or financial services – there will be an impact. But it will be marginal. PwC: Do you think Indian companies, particularly banks, will go out and acquire companies and banks overseas?

PwC: Do you think Indian companies, particularly banks, will go out and acquire companies and banks overseas?

K.V.K.: I think these are turbulent times. Over the long run, Indian financial institutions will go out and make acquisitions – but not under current conditions. Even today, we are not a capital rich country. We are still capital scarce. It will take time for Indian institutions to reach that level. However, over a period of 10 years, Indian financial institutions will get stronger as the economy gets stronger. Just by growing at 25 to 30 per cent growth, we will be doubling our

41

balance sheet every three years. Assuming Indian banks keep pace in terms of financial capital and human capital, they will become relevant global players in 10 years. Take the example of China. Not long ago, Chinese banks were tottering. Back then, if somebody had said that in five year’s time the world’s largest bank would be Chinese, nobody would have believed it. Three or four years ago, I did not foresee that three Chinese banks would be ranked among the world’s top 10. So if growth in India continues at the pace we are seeing, in 10 to 15 years some Indian banks could be among the world’s largest. At that point, those Indian banks will look for global opportunities apart from domestic ones.

PwC: What was the last economic downturn that affected your business – and what lessons did you learn from it?

K.V.K.: The last economic downturn was in 1995-1997. During that time, the industrial sector in India had to come to terms with the challenges of globalisation and the necessity of building scale, improving quality, and cutting costs. That impacted almost all our customers. At that point of time, ICICI was a single product company – we were a development bank providing project finance. From that last downturn we learned that it is dangerous to be a single product company. One needs to be diversified. So we went about building the various businesses that we have today. By being diversified, we have one piston or another firing, even when we come under stress in one particular sector.

PwC: Do you see any opportunities from this downturn?

K.V.K.: There is no downturn per share in the Indian industrial or infrastructure space. The downturn that may happen in India will be a consequence of a squeeze on corporate profitability in combination with equity and debt problems arising in the capital markets. But in my view, that is unlikely to happen. Corporate India is a different machine today as opposed to what it was 10 to 12 years back. They have a much better understanding of the causes of the last time downturn and they won’t let that happen to them again. So they have learnt their lesson. As for ICICI, we have learned not to be a single product company. Ten years ago, we established a vision for ourselves. We went from being a project finance company, whose main product was term loans, to becoming a retail bank serving millions of individual customers. Our retail operations were in acceleration mode until earlier this year. Interest rate hikes made things difficult for the lay borrower. Therefore, we slowed down. We received a lot of criticism from our investors and media for that move – but we think that it was the right thing to do. Five years ago we saw the kinds of opportunities that could be exploited by globalising the bank. There are two to three opportunities there – for example, remittances into India and meeting aspirations of Indian companies going global. A few years later the revival of the corporate credit market provided us with another opportunity. And most recently, we have begun to pursue opportunities in rural India. To put it very simply, there are 600 million rural Indians who are completely un-banked. It’s a huge opportunity. As these 600 million people begin to earn more, their aspirations will come to the fore. We will serve their aspirations. That’s going to be a big business for us.

42

PwC: Do you think businesses in your industry commonly make the same mistake twice? If so, why?

K.V.K.: In the banking context, the major mistake a player can make is to do business without understanding it; or not getting the right people to manage the business. So mistakes are essentially process- or people-related.

PwC: What does long-term sustainability mean to you?

K.V.K.: To me, long-term sustainability means that the growth aspirations of a nation’s people and those of your company are in sync.

PwC: Have you altered your strategy to address the need to strike a better balance between short term success and the long term durability of your business?

K.V.K.: Clearly, in today’s context long-term is not 10 years. Instead, the planning cycle has gone down to three to four years. Every three to four years, you need to have plans that describe new sources of growth. That is what we have been doing at ICICI Bank. In mature economies, growth slows as the number of new opportunities decreases. For example, the banking sector in mature economies may grow at five to seven per cent annually. In India, the banking sector grows by 25-30 per cent.

PwC: How to you incentivise your senior management to think long-term?

K.V.K.: This is done by involving them early on in the strategic mapping process; and making sure that they understand the strategy and contribute to it. An idea need not necessarily be mapped by me and given to others to implement. Often, it is developed by the team. And ideas needn’t always be related to the marketplace. It could, for example, be about an HR issue. Here is one such example. Sometime back, we found that recruiting management graduates from top business schools was turning out to be an expensive proposition. Our HR manager said we should also try recruiting talent from rural India. After soliciting rural recruits we received 100,000 applications and from those selected 20,000. After training these recruits for a year, they generally performed better than the people recruited from the top ranked business schools. We also got the regional balance that we wanted in our workforce. I was curious to know why rural Indians were not well-represented in corporate India. My HR manager told me that due to financial pressures most rural students were forced to take up menial jobs and forego more ambitious professional goals. When we learned that we made sure that all our recruits were paid a stipend from day one. Again, this initiative was not my idea but one of my senior manager’s. Similarly, two years back, we realized that customers don’t like to stand in long queues to deposit cash with the teller. That’s when a colleague suggested that we allow customers to deposit money in envelops while being recorded by a security camera. At first, I was very skeptical about this initiative. But since this initiative was launched, we have received just one complain.

43

PwC: What elements of your business model are critical to ensure that your business is able to adapt to the changing conditions over the long term?

K.V.K.: It starts with human talent. You need to be multi-skilled. For instance, you may find that the retail part of the business is slowing down due to the economic conditions. We then need to redeploy those people. We do that all the time. We know that the retail business will pick up in time, so we can’t shut this business. Instead, we redeploy our employees. The other key aspect is technology, which, over the next 10-15 years, will be the most disruptive factor facing the banking sector. The challenge is to see how you can do business with technology. For instance, we thought of launching smart cards in villages. But today, cell phones are widespread in rural areas and their use to enable ‘mobile commerce’ is becoming more common. So, in the last two years, the cell phone has become an important tool for our business. If you have a cell phone you can bank with us using your individual access code.

PwC: What about supply chain management or logistics?

K.V.K.: Logistics is a huge challenge in any business today. In our business, it is not so much from the point of view of things coming in, but the process of how we communicate with our customers. To me, that is logistics. The way one manages the is completely changing. And in that context, our supply chain is increasingly migrating to online channels.

PwC: What about business partnerships?

K.V.K.: They are going to be critical. I believe in what C K Prahalad has said about co-creation. I think a lot of co-creation will happen when you work with your customer. And that, to me, is partnership at its most granular level.

PwC: Is branding also a critical factor?

K.V.K.: Branding is critical when you are building a business. But over time, people begin to understand your business. Thereafter, other drivers take precedence. For example, for a long time, convenience was never a critical factor in banking. In the late 1990s, we ran studies and were surprised to find that convenience had become the most important factor for our customers. Consequently, the brand became secondary to the convenience that we were offering. In today’s context, the ability to leverage technology is definitely the biggest differentiator.

PwC: When you make an investment, do you consider the long-term impact on the wellbeing of future generations?

K.V.K.: Any investment has to factor in the long-term, because it is highly unlikely that you will recover your capital in the short or the medium-term. Consider our investments in rural India. We are not making investments there with a three or four year period in mind. We are thinking in terms of 10 to 15 years. I think organizations will have to continuously explore such opportunities.

44

PwC: Do you expect ICICI to be materially impacted by a scarcity of natural resources within the next year or more?

K.V.K.: In India, though manpower is not an issue, skilled manpower is certainly an issue being faced by all industries. Energy resources are also too scarce. And this scarcity pushes up prices and thereby the cost of doing business. I am sure research in energy alternative will help fill the gap. Scarcity always encourages people to find alternative solutions.

PwC: How do you address these scarcities?

K.V.K.: Business is always on its toes. Business will find solutions.

PwC: Retaining and recruiting people are key challenges today. Can you tell us about some key strategies you have adopted to address this issue?

K.V.K.: We run a meritocracy. I think that is the common denominator to getting the right HR framework. We have always recruited and promoted the right people. But for a number of years we saw that attrition was becoming a huge problem for us. In fact, across most industries In India, the attrition rate is almost 20 per cent. As a business, one might address the attrition problem by building a deep bench or by increasing salaries. But we didn’t want to get into an endless rat race competing for talent. A colleague then came up with an idea. He suggested that we codify our training curriculum and share it through a partnership with NIIT, which is a leading Indian training institute. So we worked with NIIT on a program of study that would train young Indians in banking and insurance. That’s how the Institute of Finance Banking and Insurance took shape. IFBI is an NIIT venture with equity participation by ICICI Bank. It offers a six month course, with two months of on-the-job training. There is no stipend. The student pays for the course. The people who come out from this institute are able to work with any bank or insurance company. So we are easing other financial companies’ supply problem too.

PwC: Is government a help or a hindrance in acquiring and retaining access to the natural resources you need?

K.V.K.: The government plays a supportive role. As long as it provides an environment that is open and where the playing field is level – for both domestic and global competitors – businesses will grow. The government is learning very quickly. Perhaps, it’s not right to point fingers at the government and say that the government has not opened up enough. If we look at countries around the world, we are significantly more open than most others.

PwC: Do we need to open up further?

K.V.K.: The whole issue of the financial sector opening up in India will have to be looked at the way we had looked at the WTO in the context of market access. I think this is going to be an important part of our market access strategy. But we should not sacrifice our interests for the interests of our global competitors.

45

PwC: Which stakeholders influence most your decision-making process?

K.V.K.: Customers and local communities are critical to the success of any business. And, of course, the regulators. Without keeping the interests of these stakeholders in mind, you don’t have a business. Local communities hold the key to the success of any business. If you look at some of the challenges businesses have faced – in terms of land acquisition, for example – by and large it boils down to how well they handle the local community. Businesses have to learn to deal appropriately with the communities in which they operate. That means learning and understanding the community’s point of view and addressing it. To me, that is the first challenge. Then comes the customer. That’s followed by the regulator because you have to do business within the regulatory framework.

PwC: What impact does the health and wellness of employees have on the long-term success and durability of your business?

K.V.K.: I think it is critical that you provide an environment that takes care of a person’s needs in terms of health and wellness. Medical counseling has become a critical part of our processes. At ICICI, we make this a focal point. We monitor everyone’s health. It starts with me and goes down to everybody in this organization.

PwC: When you plan for the future, what sort of time horizon do you use – and is it getting longer or shorter?

K.V.K.: In today’s world, you can’t have one strategy that lasts 10 years. Over a 10 to 15 year time horizon, you must have multiple strategies. In our case, first it was the ATM, then came the internet, and now it is the cell phone. For example, six years back, 95 per cent of all transactions at ICICI took place at our branches. Today, less than 10 per cent take place at the branch level. Today most transactions take place at the ATM. But we find that the internet is fast taking over the ATM. Internet transactions now comprise about 25 to 27 per cent of all transactions. I never thought the internet could be such a potent force in India.

PwC: What will success look like for you in the next 12 months?

K.V.K.: We are on a growth treadmill and we will run fast. We need to maintain a high rate of growth of eight to 10 per cent. I think all the required inputs are already there. But we need to work hard in order to make that happen. Maintaining growth at 10 per cent over the next five-years is the real challenge before India. And that’s what can transform this country.

India now has limited need for aggressive fiscal or monetary policy actions as the economy has neared the trough of the current downturn, ICICI Bank said in a note on Saturday.

The economy grew 5.8 per cent in January-March from a year earlier, beating the 5.2 per cent median estimate in a Reuters survey, data showed on Friday. In the fiscal year ended March 31, the growth was at 6.7 per cent, faster than economist predictions.

46

"The fourth quarter data and revisions to the third quarter data confirm that the bottom of this slowdown has not been as bad as market expectations," Samiran Chakraborty and Kamalika Das, economists at ICICI bank wrote in the note.

An analysis of the sectoral performance shows that industrial growth for Jan-March was the best in five quarters, agriculture performed in line with its historical track record, while services slowed slightly as expected, they wrote.

Better-than-expected GDP numbers and the election results which saw a stable government at the centre should indicate an upward bias to the bank's growth projections for the 2009/10 fiscal year, they add Kundapur Vaman Kamath, the incumbent chief executive who retires from executive responsibilities at the end of April 2009, was an overpowering personality at the development-finance-lender-turned-bank. Kochhar's leadership qualities will be put to test as she gets down to bind into a cohesive force the top executive management at the bank group. The top executives include her peers who also have the ambitions of making it big. Shikha Sharma, the managing director of ICICI Prudential Life Insurance, was her most immediate competitor to head the financial services group. The others are the three Executive Directors -- V Vaidyanathan (in charge of retail banking), Madhabi Puri-Buch (oversees risk management) and Sonjoy Chatterjee (head of corporate banking and international operations). Kochhar has more than four months to knit together the top management, before she assumes charge as the chief executive from May 1, 2009. Kamath's presence, and hopefully guidance, will help her in ensuring her top management colleagues get enough room to give vent to their ambitions. The immediate task done, she will have to plan out strategies to spearhead and then take on the high growth path again the financial services group, spawned by the towering Kamath who had become synonymous with ICICI Bank. The other big challenge for Kochhar will be about working towards changing the widespread perception that the bank is a high-risk financial services player. Certainly, continuing to make enough profits to withstand the higher and possibly, rising loan defaults. The announcement of the appointment comes in a year that saw ICICI Bank on the brink of facing a run on its deposits, following revelations that its international operations had the largest losses among Indian banks linked to the global financial crisis. Kochhar is also credited with building the bank's retail lending business, where loan assets grew 20 times since 2000. Kochhar is obviously aware of the challenges ahead. "One should not take challenge as a scare. Leadership capabilities and strength of an organization are best tested in challenging times," is her response.

Customers view towards ICICI Bank Ltd.

I would like to thank and appreciate ICICI Bank staff for the care they show to their customers. The immediate response they give is just fabulous. Recently I had lost my blank signed cheque and as I am working in Saudi Arabia and the cheque was lost in India, I was really worried. I was looking for procedures to send a fax or request letter to cancel the cheque. Initially I thought it would be a lengthy procedure and in the mean

47

time if the cheque were to fall in the wrong hands, it would have been hard. But to my surprise, when I logged the ICICI Bank website, the facility for cancellation already existed which was done in just seconds. I was really relieved that even from thousands of kilometers away; I was able to cancel it in seconds. It does not stop here! To my utter surprise the ICICI Bank staff called me twice (International Calls) to confirm my cancellation of the cheque. It was just unbelievable. I am really thankful for this gesture.

(Sohel Ahmed L, Jubail Saudi Arab, February 09, 2009, Customer Service)

I have a Student Saving Account in Mumbai for more than 3 years. The minimum balance which I need to maintain is hardly anything; also, I never have to pay any charges for maintaining this account. Before opening this account I visited many other national banks. But they couldn't offer me the same kind of account, with similar facilities. I am very happy with my Student Saving Account. I would like to recommend all.

(Amey Sheth, New Mumbai, February 24, 2009, General) My relationship with ICICI Bank dates back to the year 2003 when I got my salary

account opened with the bank. Ever since, I have been really impressed with their service. The biggest positive about ICICI Bank has been their innovative ways and aggression to achieve greater customer satisfaction. Reliability is also a strong forte. I am also holding a Credit Card with ICICI and am really satisfied. No complaints till date. Anybody having relationship with ICICI Bank can have complete peace of mind as far as their finances are concerned. Wish the ICICI Bank team the very best and hope to see them grow bigger and stronger every day. Cheers!

(Ayan Sen, Hyderabad, January 07, 2009, General )

I just came to the bank to get the details of the savings account and I was very impressed with the service levels, handling of the queries. It gave more insights than I needed. I thank the bank authorities for this level of service. And hope it will be continuing to provide the same level service to all the customers.

(Prabhatkala, Bangalore, December 10, 2008, Branch Banking) I wish to share my happiness due to banking with ICICI. Recently I inadvertently entered

Rs.3000/- on the envelope, whereas the correct amount of Rs.4000/- was credited in my account. Through this incident, my trust and faith in ICICI Bank is increased.(S Gurusankar, Coimbatore, December 11, 2008, General)

VIEW POINTS:

ICICI Bank has established itself as a one stop solution (Universal Bank) for all financial need of individuals and institutions alike. The credit for the same can be attributed to its vast network, probably the largest among private sector banks.This makes the life of an employee a lot easier, especially for those who face the external customers. You do not have to justify your organization, it is only the product that has to be pitched. As far as employee benefits are

48

concerned, ICICI Bank offers a lot of financial benefits ranging from your family health insurance to your kids school donations. The organization is sensitive to the needs of its employees as this quality is one of the building blocks (DNA) of the organizational culture.  The organization will be giving you enough flexibility to innovate and come-up with new ideas. It will also exhibit its rigidity in terms of well laid systems, processes and infrastructure. It will extend a fast track growth for those with extraordinary talent at the same time offer stability to those who are able to deliver satisfactorily.Overall, I would say it’s a lifetime experience to work with such a behemoth organization. It might not be the best paymaster but it definitely will impress you with its capability as the head master (Principal) of banking industry.

Privacy Commitment:-

In the course of using this website or availing the products and services vide the online application forms and questionnaires, ICICI bank and its affiliates may become privy to the personal information of its customers, including information that is of a confidential nature.

ICICI bank is strongly committed to protecting the privacy of its customers and has taken all necessary and reasonable measures to protect the confidentiality of the customer information and its transmission through the world wide web and it shall not be held liable for disclosure of the confidential information when in accordance with this privacy commitment or in terms of the agreements, if any, with the customers.

ICICI bank endeavours to safeguard and ensure the security of the information provided by the customer. ICICI bank uses 128-bit encryption, for the transmission of the information, which is currently the permitted level of encryption in India. When the information provided by the customers is not transmitted through this encryption, the customer's system (if configured accordingly) will display an appropriate message ensuring the best level of secrecy for the customer's information.

The customer would be required to cooperate with ICICI bank in order to ensure the security of the information, and it is recommended that the customers necessarily choose their passwords carefully such that no unauthorised access is made by a third party. To make the password complex and difficult for others to guess, the customers should use combination of alphabets, numbers and special characters (like !, @, #, $ etc.). The customers should undertake not to disclose their password to anyone or keep any written or other record of the password such that a third party could access it.

ICICI bank undertakes not to disclose the information provided by the customers to any person, unless such action is necessary to:

Conform to legal requirements or comply with legal process; Protect and defend ICICI bank's or its affiliates rights, interests or property;

Enforce the terms and conditions of the products or services; or

Act to protect the interests of ICICI bank, its affiliates, or its members, constituents or of other persons.

49

Some things which make ICICI bank different from other private sector bank:-

ICICI Group is committed to adoption of fair employment practices. It ensures diversity of workplace through efforts to recruit, develop and retain the most talented people from a diverse candidate pool. It upholds the principle that advancement is based on talent and performance and there is a commitment to equal opportunity.

As a fair employment practice, we expect that you shall not (during the course of your service or upon cessation of your service for a period of six months from the date of cessation) directly or indirectly on your own accord or on behalf or in conjunction with any other person, convey or solicit or attempt to induce any employee or business associate to leave their current employment with the ICICI Group and join the service of the new employer or any competitor.

Although it is common together information about the general marketplace, including the competitors’ products and services, the Company wants to compete fairly.

ICICI Group is committed to prohibition of harassment and intimidation of employees in the workplace. The ICICI Group discourages conduct that implies granting or withholding favours or opportunities as a basis for decisions affecting an individual, in return for that individual’s compliance. Such harassment is the easier form of harassment to identify because it takes the form of either a threat or a promise, whether explicitor implied.

ICICI Group has a Gender Neutral Policy that prohibits unwelcome advances, requests for sexual favours, or other verbal or physical conduct where such conduct has the purpose or effect of unreasonably interfering with an individual’s work performance or creating an intimidating, hostile or offensive working environment.

ICICI Group considers safety of employees as the primary concern. The ICICI Group is committed to safety of employees and expects its businesses and employees to comply fully with appropriate laws and internal regulations.

ICICI Group encourages responsible behavior of its employees and colleagues that result in the best possible accident prevention measures. This applies both to the technical planning of workplaces, equipment, and processes and to safety managementand personal behavior in everyday workplace.

Duty of selection - Carefully select the employees for a job in light of their personal and professional qualifications. The duty of care increases with the importance of the obligation to be entrusted to the employee.

Duty of instruction - Formulate obligations in a precise, complete, and binding manner, especially with a view to ensure compliance with provisions of instructions.

Duty of monitoring - Ensure that compliance with provisions of applicable law / regulations is monitored on a constant basis (duty of monitoring).

50

51

52

( On May 5, 2008, Mr. K. V. Kamath, MD&CEO was awarded the prestigious Padma Bhushan by the President of India )

CONCLUSION

Every week and every day of my summer internship has given me a learning curve and a new

experience on the insurance industry and the market status. I came to know a lot of things like

customer approaching skills, investment planning, product details etc. which will help me in

achieving my target. It will also help me to generate more business for the company by easily

convincing the customers for the policy because, now I am in a position to answer the customer

queries which are very genuine during a call. I have done a lot of field work and came to know a

lot of things like how to approach the customers by specifying the products which exactly meet

their needs, about the difference between private and government products (policy), about the

various customer segment requirements, etc. While undergoing this Executive training I came

across many informative things which proved to be a value addition to my career through selling

53

and sales promotion activities . The rejection which I had faced during convincing to create

customers, this activity was not point to stop down rather it was an initiation process in my

executive training. Rejection are the first step to the ladder of success and a act as a mentor

towards the achievement of our long term goals i.e. to fulfill the targets given and receive a

recognition. As we knows failure is the pillar of success , so one should not feel upset when he is

unable to achieve the target. One should not be afraid of working under different condition ,and

should look forward with each failure but it does not mean that we get success after failing

several times. During this last six week I knows how to approach or convenience customers and

there perception and behavior. It also helps me to know how to behave with different class of

people.

54

ANNEXURE

1. Which is the product doesn’t suit you?

2. What is the best product of ICICI Bank?

3. Have you taken any product from ICICI Bank? If yes, what is/are that product?

4. Do you think it is the right time for investment in banking products?

5. Do you want to know about products of ICICI Bank?

6. Any suggestions for ICICI Bank?

Name of the interviewee:

Contact number:

Thanks a lot

55

REFERENCE

WEB SITES:

www.allbusiness.com

www.wikipedia.com

www.sciencedirect.com

www.jstor.com

www.google.com

www.icici.com

www.iciciprulife.com

www.pwc.com

www.india-today.com

56

57