Icici Bank Report

A PROJECT REPORT

ON

“What do the customers perceive about

the market linked investments & products

of ICICI Bank”

AT

ICICI BANK

SUBMITTED TO: SUBMITTED BY: MR. Muntazir Mamun Imran Hassan

FACULTY GUIDE ENROLL NO.06033480

MBA(MARKETING & SALES)

BATCH OF 2009

1

SUMMER INTERNSHIP

PROJECT REPORT

ON

“What do the customers perceive about Market linked investments &

products of ICICI Bank”

IN THE PARTIAL FULFILLMENT OF THE REQUIREMENT FOR

MASTERS OF BUSINESS ADMINISTRATION

Degree Programme

Of

UNDER THE GUIDANCE OF:

MR. Noman khan

SUBMITTED TO: MR. Muntazir Mamun SUBMITTED BY: Imran

FACULTY GUIDE ENROLL NO.06033480

MBA(MARKETING & SALES)

2

Acknowledgement

This project is a culmination of task undertaken by me after the First year during my summer

Internship.

Acknowledgement is not a mere formality or ritual but a genuine opportunity to express the indebtedness

to all those without who’s active support and encouragement this project wouldn’t have been possible. My

special thanks to Mr. Rahul Trivedi (Industry Guide, Senior Wealth Manager ICICI Bank) who gave me

the proper guidance.

I have used questionnaire method to collect data and had analyzed them. I got some findings by analyzing

data as in the end I have also given the recommendations to the company, which I thought would help the

company in some way. I used direct interview from the customers for collecting data.

Imran Hassan

MBA(M&S)

Class of 2007-09

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Abstract

The project has been undertaken in a renowned bank “ICICI”. The main objective behind the

project is to know the consumer perception about the Market Risks & Investments and to get an

insight about the various product offerings of the bank. To find the various reasons because of

which the company is able to survive the edge cutting competition and what are the other

marketing strategies of the company. A survey has been done and data has been collected from

various customers all over Bhopal & Mandideep and thus a report has been prepared. In the

survey the customers were interacted in order to find out their knowledge about the products &

schemes of ICICI Bank. The customers who were unknown about the product offerings were

given information. The knowledge about various market linked investments was given to them

and it was told that how can they invest their money to get superior returns. It was told to them

to take the help of the wealth managers of ICICI Bank in order to protect their capital.

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Table of Contents

1) Introduction...................................................................................................6

Company Profile……………………………………………………………..7

Vision of the Bank…………………………………………………………...8

History.....................................................................................................9

2) Market Strategies of ICICI Bank.................................................................11

Universal Banking…………………………………………………………..12

Global Market Strategy…………………………………………………….14

Advertising Strategy……………………………………………………….15

3) Competitors.................................................................................................16

ICICI Vs HDFC……………………………………………………………..17

ICICI Vs Axis……………………………………………………………….18

4) Product Offerings........................................................................................20

Alliance Products............................................................................26

Corporate Banking……………………………………………………..28

Transaction Banking…………………………………………………...29

SME Banking…………………………………………………………….30

Services…………………………………………………………………..38

Demat Services………………………………………………………….42

Mutual Funds…………………………………………………………….43

Insurance Policies………………………………………………………47

Wealth Management……………………………………………………53

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Investment Planning…………………………………………………..55

5) Objective of Research………………………………………………………....57

6) Research Methodology..............................................................................58

7) Analysis.......................................................................................................60

Findings & Analysis…………………………………………………...61

Results & discussion………………………………………………….71

Conclusion & Recommendation…………………………………….73

8) References..........................................................................................75

9) Annexure…………………………………………………………………………..76

Questionnaire………………………………………………………………..77

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INTRODUCTION

7

Introduction:

Company Profile

ICICI Bank is India's second-largest bank with total assets of Rs. 3,997.95 billion (US$ 100

billion) at March 31, 2008 and profit after tax of Rs. 41.58 billion for the year ended on March

31, 2008. ICICI Bank is the second amongst all the companies listed on the Indian stock

exchanges in terms of free float market capitalisation. The Bank has a network of about 1,308

branches and 3,950 ATMs in India and a presence in 18 countries. ICICI Bank offers a wide

range of banking products and financial services to corporate and retail customers through a

variety of delivery channels and through its specialised subsidiaries and affiliates in the areas of

investment banking, life and non-life insurance, venture capital and asset management or

wealth management. The Bank currently has its subsidiaries in the United Kingdom, Russia and

Canada, branches in Unites States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and

Dubai International Finance Centre and representative offices in United Arab Emirates, China,

South Africa, Bangladesh, Thailand, Malaysia and Indonesia. The bank’s UK subsidiary has

established branches in Belgium and Germany.

ICICI Bank's equity shares are listed in India on Bombay Stock Exchange (BSE) and the

National Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are

listed on the New York Stock Exchange (NYSE).

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Vision of ICICI Bank:

9

Over the last few years, the ICICI Bank has taken rapid strides in developing new businesses in

line with its proposition to offer complete financial services to both corporate and retail

customers.

With the recent addition of insurance, the proposition of ICICI Bank is now fulfilled. Going

forward, the challenge for ICICI will be to continue innovating to improve market shares and

maintain its competitive edge. In this endeavour, ICICI will continue to benchmark with global

best practices to ensure optimum utilization of its resources and the finest exposure to its work

force. The speed with which it has been able to transform the organization and successfully

start so many new businesses is almost singularly owing to the skills, enterprise and the depth

of its human resources.

ICICI Bank is committed to enriching this valuable resource which in turn, will allow it to bring

innovative practices to the world of financial services in India. With technology playing the key

role mainly.

The vision is to develop ICICI Bank into an organization that is empowered by bright and

talented individuals, working in teams and riding on the backbone of world class technology.

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History

The ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution,

and was its wholly owned subsidiary. ICICI's shareholding in ICICI Bank was reduced to 46%

through a public offering of shares in India in fiscal year 1998, an equity offering in the form of

ADRs listed on the NYSE in fiscal year 2000, ICICI Bank's acquisition of Bank of Madura

Limited in an all-stock amalgamation in fiscal year 2001, and secondary market sales by ICICI

to institutional investors in fiscal year 2001 and fiscal year 2002. ICICI was formed in year 1955

at the initiative of the World Bank, the Government of India and representatives of Indian

industry. The principal objective was to create a development financial institution for providing

the medium-term and long-term project financing to Indian businesses. In the 1990s, the ICICI

transformed its business from a development financial institution offering only single project

finance to a diversified financial services group offering a wide variety of products and services,

both directly and through a number of subsidiaries and affiliates like ICICI Bank. In 1999, the

ICICI become the first Indian company and the first bank or financial institution from non-Japan

Asia to be listed on the New York Stock Exchange (NYSE).

After consideration of various corporate structuring alternatives in the context of the emerging

competitive scenario in the Indian banking industry, and the move towards universal banking

scenario, the managements of the ICICI and ICICI Bank formed the view that the merger of

ICICI with ICICI Bank would be the optimal strategic alternative for both of the entities, and

would create the optimal legal structure for the ICICI group's universal banking strategy. The

merger would enhance value for the ICICI shareholders through the merged entity's access to

low-cost deposits, much greater opportunities for earning fee-based income and the ability to

participate in the payments system and provide transaction-banking services. The merger would

enhance value for the ICICI Bank shareholders through a large capital base and scale of

operations, seamless access to ICICI's strong corporate relationships built up over five

decades, entry into new business segments, higher market share in various business segments,

particularly fee-based services, and access to the vast talent pool of the ICICI and its number of

subsidiaries. In October 2001, the Boards of Directors of the ICICI and ICICI Bank approved the

merger of ICICI and two of its wholly owned retail finance subsidiaries, the ICICI Personal

Financial Services Limited and the ICICI Capital Services Limited, with the ICICI Bank. The

merger was approved by shareholders of the ICICI and ICICI Bank in January 2002, by the High

Court of Gujarat at Ahmadabad in March 2002, and by the High Court of Judicature at Mumbai

and the Reserve Bank of India in April 2002. Consequent to the merger, the ICICI group's

financing and banking operations, both the wholesale and retail, have been integrated in a

single i.e. the ICICI Bank.

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MARKETING STRATEGIES

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Market Strategy of ICICI Bank:

ICICI Bank uses the concept of Universal Banking.

Universal Banking Concept:

In universal banking, large banks operate extensively in networks of branches, provide many

different services, hold several claims on firms (including equity and debt), and participate

directly in the corporate governance of firms that rely on the banks for funding or as insurance

underwriters. It means the ability to offer i.e. sell and underwrite all the types of products and

services to any set of clients, either through a single or through a group of companies. The

practice of Universal Banking varies across several countries. India faces a very high regulatory

burden although now a conglomerate structure of the universal banking has already been

permitted .Many international players like ABN-AMRO, Citigroup, HSBC, Deutsche Bank, JP

Morgan Chase, Lehman Brothers have realized the benefits of Universal Banking. The ICICI

Bank has also joined these international players. The ICICI Bank functions as a universal bank

through itself and its associate companies in the areas of corporate finance, commercial

banking, personal banking, investment banking, asset management, investor services and

insurance. The Universal Banking provides competitive advantage in the current scenario

through large product suite, diversified resource base, Economies of scale and scope,

Optimization of human and financial capital.

In a span of just four years, the ICICI Bank has emerged as a consumer banking behemoth.

With a retail book of over Rs 56,000 crores (Rs 560 billion) and a market share that is the envy

of competition -- it has a share of over 30 per cent – The ICICI Bank today has reached a

commanding position.

The bank boasts of the widest integrated technology platform in the country and only a fourth of

its business takes place at its branches and subsidiaries.

Its legacy of non-performing assets (NPAs) -- for which it has been rated below its peers earlier

-- is now almost history with net NPLs (non-performing loans) down to 2 per cent.

Armed with a much stronger balance sheet, the ICICI Bank is aggressively foraying into

overseas markets and also has an eye on the rural India.

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Rural India is an opportunity, somewhat premature, but in the next 12-18 months the bank’s

strategy will be seen there. Bank is looking at new agri lending as something that is directed; it's

a viable business proposition, but it has to be driven very carefully. The bank can't have

branches there because that is not workable in terms of costs.

The solution to this problem is to partner with the micro-credit institutions, corporate providing

inputs or buying products from the farmer and self-help groups.

Major Steps Taken:

In 2001 ICICI acquired the Bank of Madura (est. In 1943). The Bank of Madura was a Chettiar

bank, and had acquired the Chettinad Mercantile Bank (est. In 1933) and the Illanji Bank (est. in

1904) in the 1960s.

In 2007 ICICI amalgamated the Sangli Bank, which was headquartered in Sangli, in

Maharashtra State, and which had 158 branches in Maharashtra state and another 31 in

Karnataka State. ICICI also received permission from the government of Qatar to open a branch

in Doha and from the US Federal Reserve to open a branch in New York city. ICICI Bank

Eurasia opened a second branch in St. Petersburg.

In 2008 the ICICI Bank launched iMobile, a comprehensive Mobile banking solution. iMobile is

considered to be a breakthrough innovation in the Indian Banking which allows a customer to do

all possible transactions through a GPRS-enabled mobile phone easily and conveniently.

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Global Market Strategy:

The global opportunity spectrum is changing dramatically, and in the next three years, the

bank’s global business will contribute one-third of the book top line and bottom-line. Today it's

about only 10-12 per cent. The NRI (people living abroad) is a great customer and the other is

the Indian corporate who is globalising -- either in the trade business or is setting up businesses

abroad.

Bank’s USP (unique selling proposition) is a unique technology; it can get customers to talk to

his constituents online. The NRI is an interesting link because today he has tremendous needs

in India; he wants to remit money, purchase a commodity, buy a home, especially the H1 visa

guys. This year 10 per cent of the home loans will be lended to NRIs.

In the United Kingdom the ICICI bank have a partnership with Lloyds Bank and are present in

30 branches there, promoting joint products, and they get new customers.

In the United States the ICICI bank have a tie-up with Wells Fargo and their customers can start

a remittance into India from any channel.

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Advertising Strategy:

Amitabh Bachchan as brand ambassador of ICICI:

Under the agreement, Mr. Amitabh Bachchan endorsed and promoted all the products and

services offered by ICICI and its Group companies for a period of two years.

During his term as the brand ambassador, he played a key role in all major brand and product

communication by ICICI. He endorsed the ICICI brand through corporate and product

campaigns on television, print and outdoor medium. Mr. Bachchan also participated in select

events such as new product launches, various campaigns, and customer reward programmes

etc.

ShahRukh Khan as global brand ambassador of ICICI:

After Mr. Bachchan the ICICI Bank has decided to resort to the celebrity endorsement route to

promote its brand. Almost two-and-a-half years since superstar Amitabh Bachchan endorsed

the ICICI brand, the company has signed up Shah Rukh Khan as its global ambassador. Shah

Rukh Khan whose increasing global popularity gives synergy to the growing global presence of

ICICI Bank.

Shahrukh Khan is a truly global Indian who embodies the Indian winning spirit in a true sense.

The energy and innovation which Shahrukh Khan represents coupled with his popularity both in

India and abroad make him the ideal choice for the ICICI Bank, particularly as the Bank makes

its global forays. Within a short span of four years, the ICICI Bank has established its presence

in 12 countries including UK, Canada, US and the Middle East.

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COMPETITORS

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Competitors of ICICI Bank:

Its nearest competitors in the private banking sector are HDFC Bank and AXIS (UTI) Bank.

As compared to ICICI Bank HDFC is frenetically seeking to shrug off the image of being a one-

product company (home loans), by using synergies that exist with its bank to foray into various

areas like e-broking, mutual funds, and insurance. For ICICI Bank, it is imperative that it moves

away from the high-risk, low-return business of project finance.

Universal Banking, ICICI Style

ICICI: Bonds, loans, corporate finance, and

infrastructure finance.

ICICI Web Trade: Online stock trading

ICICI Bank: Retail and corporate banking,

and cash management

ICICI Home: Housing finance

ICICI Capital: Financial products marketing

and distribution

ICICI Securities: I-Banking, corporate

finance, and advisory

ICICI Prudential: Life Insurance joint

venture

ICICI Brokerage: Broking and equity

research

ICICI Lombard: General Insurance joint

venture

ICICI Venture: Private equity investments

ICICI Infotech: Software solutions and IT-

enabled services

ICICI Kinfra: Infrastructure financing in

Kerala

ICICI Personal Financial Services: Retail

loan distribution

ICICI Winfra: Infrastructure financing in West

Bengal

ICICI International: Offshore investment

and fund management

ICICI Knowledge Park: Infrastructure and

support facilities

ICICI is still puny when compared to HDFC but the objective is very clear : grow the business,

even if it has come at HDFC's cost. Kalpana Morparia, Executive Director, ICICI, maintains that

they got into home loans simply because it's one of the safest businesses to be in, given the low

default rates. ''Besides, the market is growing and there's space for all those who wants to

enter.

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HDFC Bank:

AXIS Bank:

In the case of Axis Bank, retail loans have declined from 30 per cent of the total loan book of Rs

25,800 crores in June 2006 to around 23 per cent of loan book of Rs.41,280 crore (as of June

2007). Even over a longer period, while the overall asset growth for Axis Bank has been quite

high and has matched that of the other banks, retail exposures grew at a much slower pace.

Why ICICI Bank Leads:

ICICI bank envisaged retail banking as a key area of strategic emphasis for it — with the share

of the retail business (both on the funding and asset sides) growing strongly year after year—

the share of retail business, particularly retail assets.

It appears to be following a business strategy that is quite different from the high-volume and

commodity-style approach of AXIS Bank and HDFC Bank. That strategy also has its pluses in

terms of the relatively higher margins in some segments of the retail business and the in-built

credit risk diversification (and mitigation) achieved through a widely dispersed retail credit

portfolio. ICICI Bank has been able to maintain the quality of its loan portfolio for a decent time

period now.

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The HDFC House

HDFC Housing finance

HDFC Asset

Management

Mutual funds

HDFC Reality Online property solutions (JV with

Mahindra’s)

HDFC Standard

Life

Life insurance joint venture

HDFC Securities Internet and phone broking

Gruh Finance Home loans for repair and

reconstruction

PRODUCT OFFERINGS

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Product Offerings:

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1) DEPOSITS

ICICI Bank offers wide variety of Deposit Products to suit the requirements of the

customers. Convenience of networked branches/ ATMs and facility of E-channels like

Internet and Mobile Banking.

a) Savings Account : A Savings Account for everyone with a host of convenient

features and banking channels to transact through. So now people can bank at

their convenience, without the stress of waiting in queues. ICICI service savings

accounts with 8 to 8 banking and ‘out of branch’ banking.

b) Life Plus Senior Citizens Savings Account :

ICICI Bank understand that a Savings Account needs to do more after people

reach the age of seniority; the bank understand customers concerns for safety and

security. The bank has an ideal Savings Bank Service for those who are 60 years

and above. The Senior Citizen Services from ICICI Bank has several advantages

that are tailored to bring more convenience and enjoyment in their life.

c) Young Stars Savings Account :

It's really important to help children learn the value of finances and money

management at an early age. Banking is a serious business, but ICICI make

banking a pleasure and at the same time fun. Children learn how to manage their

personal finances.

d) Fixed Deposits :

ICICI provides Safety, Flexibility, Liquidity and Returns in the case of fixed deposits.

A combination of unbeatable features of the Fixed Deposit from ICICI Bank.

e) Recurring Deposits

When expenses are high, people may not have adequate funds to make big

investments. An ICICI Bank Recurring Deposit lets the customers invest small

amounts of money every month that ends up with a large saving on maturity. So the

customers enjoy twin advantages- affordability and higher earnings.

f) Easy Receive Savings Account :

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Easy receive account is a unique savings account that caters to domestic banking

needs, while offering additional benefits for remittances received in the account

from abroad.

2) Loans: ICICI Bank offers wide variety of Loans Products to suit your requirements.

Coupled with convenience of networked branches/ ATMs and facility of E-channels like

Internet and Mobile Banking, ICICI Bank brings banking at customer’s doorstep.

a) Home Loans:

The No. 1 Home Loans Provider in the country, ICICI Bank Home Loans offers some

unbeatable benefits to its customers - Doorstep Service, Simplified Documentation and

Guidance throughout the Process.

b) Personal Loans:

If customers wants personal loan that's easy to get with the help of ICICI Bank. ICICI

Bank Personal Loans are easy to get and absolutely hassle free. With minimum

documentation people can now secure a loan for an amount up to Rs. 15 lakhs.

c) Car Loans:

ICICI Bank is the No. 1 financier for car loans in the country. It has network of more

than 2500 channel partners in over 1000 locations. It has tie-ups with all leading

automobile manufacturers to ensure the best deals. A number of flexible schemes &

quick processing are available. Hassle-free application process is available on the click

of a mouse.

d) Commercial Vehicle Loans:

Range of services on existing loans & extended products like funding of new vehicles,

refinance on used vehicles, balance transfer on high cost loans, top up on existing

loans, extend product, working capital loans & other banking products.

Two Wheeler Loans

Customers can avail attractive schemes at competitive interest rates from the No 1 Financier for

Two Wheeler Loans in the country. There is finance facility up to 90% of the On Road Cost of

the vehicle, repayable in convenient repayment options and comfortable tenors from 6 months

to 36 months.

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e) Farm Equipment Loans:

ICICI is the preferred financier for almost all leading tractor manufacturers in the

country. There is flexible repayment options in tandem with the farmer's seasonal

liquidity. They can choose from Monthly, Quarterly and Half-yearly repayment patterns.

There are comfortable repayment tenures from 1 year to 9 years.

f) Business Instalment Loans:

Business Instalment Loan (BIL) by ICICI Bank helps the entities take giant strides by

fulfilling their business requirements, be it working capital requirement, business

expansion or to grab that once in a lifetime business opportunity.

3) CARDS:

ICICI Bank offers a variety of cards to suit different transactional needs of its customers. Its

range includes Credit Cards, Debit Cards and Prepaid cards. These cards offer customers

convenience for their financial transactions like cash withdrawal, shopping and travel. These

cards are widely accepted both in India and abroad.

a)Credit Cards:

Credit Cards give customers a smart way to shop, and offer them flexibility and convenience in

managing their finances. ICICI Bank credit cards provide a host of exciting offers and benefits

to the customers such as low interest rates, rewards programs, and a high credit and cash limit.

The bank offer different types of credit cards to suit the different needs and requirements for

added features

b) Travel Cards:

The traveller’s card is the Hassle Free way to Travel the world. Customers travelling with US

Dollar, Euro, Pound Sterling or Swiss Francs; Looking for security and convenience; can opt for

ICICI Bank Travel Card. It is issued in duplicate. It offers Pin based security and has the

convenience of usage of Credit or Debit card.

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Alliance Products:

1) Wells Fargo, USA

ICICI Bank has joined hands with Wells Fargo to bring customers unprecedented convenience

for sending money to India. Customers can just call or walk into any Wells Fargo branch and

send money to anyone having an eligible ICICI bank account.

Customers just need to enrol in the Wells Fargo Express Send Global Remittance Service to

India to be able to transfer money from your eligible Wells Fargo checking or savings account to

the beneficiary's ICICI bank account. Client’s transferred funds will be available in the

beneficiary's ICICI bank account as soon as the next business day.

To avail of this economical, convenient and dependable way to send money home to India, just

open a Wells Fargo Express Send Service Agreement and ensure that the beneficiary has an

eligible account with ICICI bank.

Benefits

a) Fast – The money will reach India in a day’s time

b) Convenient – Customer get 24-hour access to Wells Fargo branches and telephone banking

services across the USA

c) Nominal charges – Flat fee of as low as $5 to send up to $3,000 per day. Customer may

even be eligible for a waiver of this fee based on the account relationship with Wells Fargo.

d) No monthly or annual service fees or setup fee for the Wells Fargo Express Send Service

e) Competitive exchange rates – The customer can get the latest rates by calling Wells Fargo

at 1-800-556-0605.

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2) Lloyds TSB - India Banking Service

India Banking Service is collaboration between ICICI Bank and Lloyds TSB, offering people of

Indian origin living in the UK access to a wide network of branches and ATMs across India and

the UK. Customers can now manage their accounts in the UK and India from a single,

convenient location.

a) Convenience of opening ICICI Bank NRE Accounts at participating Lloyds TSB

branches.

b) Access to the ICICI Bank account to family members in India

c) Easy Money Transfers at nominal costs

d) Fast transactions - within 4 working days

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Corporate Banking:

ICICI Bank offer corporate a wide range of products and services, the technologies to leverage

them anytime, anywhere and the expertise to customize them to client-specific requirements.

From cash management to corporate finance, from forex to acquisition financing, ICICI bank

provide the customers with end-to-end services for all your banking needs. The result is an

overall financial solution for the company that helps customers accomplishes their objectives.

1) ICICI Bank can guide people through the universe of strategic alternatives - from

identifying potential merger or acquisition targets to realigning their business' capital

structure.

2) ICICI Bank has been the foremost arrangers of acquisition finance for cross border

transactions and is the preferred financer for acquisitions by Indian companies in

overseas markets.

3) The Bank has also developed Forex risk hedging products for clients after

comprehensive Research of the risks a corporate body is exposed to, e.g., Interest

Rate, Forex, Commodity Credit Risk, etc.

4) ICICI bank offer the customers global services through their correspondent banking

relationship with 950 foreign banks and maintain a NOSTRO account in 19

currencies to Service people better and have strong ties with the neighbouring

countries.

5) ICICI Bank is the leading collecting bankers to Public & Private Placement/ Mutual

Funds/ Capital Gains Bonds issues. Besides, the bank have products specially

designed for the financial intermediaries to meet their unique requirements.

6) ICICI support customer’s international business by meeting working capital

requirements of export and import financing. The Bank also has a host of non-funded

services for their clients.

7) Whatever customer’s industry, size or financial requirements, ICICI Bank has the

expertise and the solutions to partner them all the way.

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Transaction Banking

The Bank delivers world class banking services to the financial sector clients. ICICI’s current

roaming accounts empower people with 'Anytime, Anywhere Banking'. They are designed for

the customer’s convenience. The comprehensive collection and payment services span India's

largest CMS network of over 4,500 branches. The bank provides correspondent banking tie-ups

with foreign banks to assist them in their India-related businesses.

Loan Syndication

The bank ensures the participation of banks and financial institution for the syndication of loans.

Some of the products syndicated are:

       • Project Finance

       • Corporate Term Loans

       • Working Capital Loans

       • Acquisition Finance, etc.

Sell Down

ICICI Bank is a market leader in the securitisation and asset sell-down market.

From its portfolio, it offers different products to its clients in this segment. The products are:

       • Asset-Backed Securities (ABS).

       • Mortgage-Backed Securities (MBS).

       • Corporate Loan Sell-down.

       • Direct Loan Assignment.

Buyouts

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As a part of a risk-diversification and portfolio-churning strategy, ICICI Bank offers buyouts of

the assets of its financial sector clients.

Resources

The Bank also raises resources, from clients, for internal use by issuing a gamut of products,

which run from Certificates of Deposit (CDs) to Term deposits to Term Loans.

Financial Institution:

ICICI Bank services the financial sector for the entire set of banking requirements and provides

a complete range of solutions. The Financial Institutions and Syndication Group (FISG) are

responsible for ICICI Bank's relationship with the financial sector.

Under this umbrella, the Bank caters exclusively to the needs of:

1) Different domestic financial Institutions

2) Banks

3) Insurance Companies

4) Mutual Funds

5) Fund Accounting

The FISG has built strong relationships through various interactive measures, like seminars,

training programs, sharing of market information and views with clients, organizing the Bank

CEOs' Forum, etc.

Government Sector:

The Bank aim to leverage their superior technology platform and on their ability to deliver

solutions customized to meet the specific needs of each client to emerge as the preferred

banker for all government departments and government corporations.

Services to the Government Sector:

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ICICI Bank acts as bankers to several government organisations. They have a wide range of

services designed to serve the government sector. Their dedicated relationship managers have

the requisite experience and training to look after their unique needs.

SME BANKING:

Client’s business now has end to end solutions on which one can depend. From the anytime

anywhere convenience of Roaming Current Account to forex remittance services that simplify

and speed up the business.

Current Account:

Roaming Current Account:

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With the Roaming Current Account (RCA), customers can enjoy the convenience of Anytime

Anywhere banking. They can operate their RCA from any ICICI Bank branch in any city. RCA

offers a wide range of variants that include:

• Standard

• Classic

• Premium

• Gold

• Gold Plus

• Platinum

These variants are based on committed Quarterly Average Balance with differential charges

applicable to each variant. Customers can choose the variant most suitable for their business

requirements. They even have the flexibility of changing their current account variant every

quarter based on their changing business needs. It also offers the facilities of International

Business Banking Debit Card, Internet Banking, Phone Banking, E-mail Banking & Mobile

Banking.

Accounts for businesses, big and small

The business needs and requirements are unique. This is why customer’s account should be

unique too. ICICI Bank offers people a range of RCAs to meet varying banking requirements.

AccountQuarterly Average

Balance Requirement

Standard Rs.10,000

Classic Rs.25,000

Premium Rs.50,000

Gold Rs.1,00,000

Gold Plus Rs.3,00,000

Platinum Rs.5,00,000

Anywhere cheque, national reaches:

Issue a cheque from customer’s place of business. The suppliers can encash it at over 249

centres all over India. When the cheque is `local' everywhere, the business goes national!

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Bank anytime anywhere.

Customer’s always had one bank branch. Now every ICICI Bank branch becomes people’s

branch. Every branch manager is the personal manager. People can get personal attention

wherever their business takes them.

Better cash flows.

ICICI ask the customer’s to deposit the cheques at the nearest ICICI Bank Branch, and they will

see to it that the cheque reflects in customer’s account fast. The bank helps customer’s money

work harder for them.

Banking on call.

Banking has never been so convenient before. Now customers can use the phone to make

Balance Enquiries, Request for a Cheque Book, Stop Payment and more.

Corporate Internet Banking.

Customers can do all the banking they want without getting up from their chair. With ICICI

Bank's Internet Banking customers can access their account from wherever they are, by logging

in to their account at www.icicibank.com. The customers can check their balance, pay their bills,

transfer funds or even pay their taxes sitting at their desk.

Card Power.

For customer’s convenience, ICICI Bank's RCA comes with a powerful Debit/ATM card that

allows the customers to deposit and withdraw cash at over 2000 ICICI Bank ATMs, plus over

10,000 VISA ATMs. The customers can also check their balance, view mini account statement,

and transacts at various 90,000 merchant establishments across the country.

Mobile Banking.

Now the entire customer’s need to keep in touch with their account through their mobile. Sign up

for alerts on daily balance, cheque clearing alerts or bounced cheque alerts!

Card-to-Card Transfer

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Transfer funds for free from the customer’s existing ICICI Bank account to any Visa Card (debit

or credit) in India. They can even pay their Visa credit card bill through this facility available on

www.icicibank.com

Free daily email statement

Customers can get a daily email detailing your their ICICI Bank current account transactions

and balance. Sub scribal to this service is free.

Business Loans:

Money, just when customer needs it

As a growing entrepreneur, ICICI know how valuable time is for people. People are constantly

thinking of growth and managing their business. At ICICI Bank, they think of the same when it

comes to customer’s business. ICICI’s Smart Business Loan is the easy access to money.

Customers can get up to Rs. 25 lacks as an Overdraft or a Business Instalment Loan with no

collaterals and faster turnaround time.

Overdraft:

Easy Access Money

Working capital as Overdraft facility

Validity of 12 months

Interest to be levied on the amount utilized

Enjoy the flexibility to pay a minimum amount every month

Interest Rate (IBAR + Cash Credit Premia + 2.75% )

Processing Fees of 2.5%

Business Instalment Loan:

Seize growth opportunities

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Credit facility in the form of Term Loan / Business Instalment Loan

Payment in the form of equated monthly instalments

Repayment tenure of 12-36 months

Plan and control your cash flows--

Interest Rate (IBAR + Term Premia + 3.5%)*

Processing Fees of 2.5%

Advantages:

Faster loan sanctions with minimum documentation

One stop solution with a bouquet of products

Attractive rate of interest

Query resolution at local branches

Other benefits:

Facility to deposit cash in the current account**

Online repayment facility**

Availability of local cheques

Flexibility to open accounts at local branches

Eligibility:

Income Tax Payee

Good business track record

Comfortable business vintage

Working Capital Finance:

Managing finance is arguably the most important component of any business. Two key business

needs are access to funds at reduced, more competitive rates and managing the balance sheet

as effectively as possible.

ICICI Bank has a team of experienced customer-focused relationship managers with wide

sector experience who can offer customers working capital finance by way of cash

credit/working capital demand loans suitably structured to their needs and their risk profile. Non

fund based facilities such as bank guarantees and Letter of Credit are also offered at

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competitive rates. The bank also facilitates working capital finance with other products such as

trade finance, forex, derivatives and cash management.

Office Equipment Loans:

Technological empowerment is an important and critical factor for the growth of small and

medium enterprises (SME). SMEs need to invest in sophisticated and state of the art office

equipment to increase productivity and efficiency. Considering these varied requirements of our

SME customers, the bank have created ICICI Bank's Office Equipment Financing product as a

convenient and hassle-free way to procure the equipment they need. The simplified procedures

and minimum documentation ensures fast and easy funds.

Office equipment financing product features include:

1) Loan amount (minimum) is Rs 30000 onwards.

2) Loan to value (LTV) is up to 80% of invoice value.

3) Tenure of 12 to 36 months

4) Equipment to be hypothecated to ICICI Bank till the time loan is repaid.

5) Flexible repayment option through post dated cheques and auto debit

mandate.

6) Door step service.

7) Competitive rates.

Office Equipment Loans are available to:

1) Proprietors

2) Partnership Firms

3) Companies

4) Trust & Societies

ICICI provide loan for almost all office equipment including:

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o IT products like personal computers, laptops, servers, switches.

o Copiers, scanners and multi functional devices.

o Printers (digital, low and high-end, wide format printers), plotters.

o Gensets, inverters, UPS.

o Colour labs.

o Air conditioners, plasmas, projectors, EPABX

Trade:

Letter of credit:

The companies customers do business with undoubtedly have impeccable credentials. But why

to take a chance. ICICI Bank’s Letter of Credit facility arms clients with a guarantee of payment,

especially useful while transacting with companies who they have had limited exposure to in the

past.

A Letter of Credit is a letter from ICICI Bank guaranteeing that a buyer's payment to a seller will

be received on time and for the correct amount. This guarantee of payment helps clients to

transact with companies with whom they have had limited interaction and are unsure of their

credit history.

ICICI Bank offers two types of LCs, Sight and Usance LCs, both inland and foreign. The bank’s

LCs get sanctioned and issued quickly, and are competitively priced.

A sight LC is a letter of credit that is payable immediately on presentation along with the

necessary documents.

A usance LC is a letter of credit that is payable after acceptance of presented documents and at

a specified future date.

An ICICI Bank Letter of Credit offers following:

o A limit per client of up to Rs.1 crore (Limit for usance L/- Rs.50 Lakhs).

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o Period of up to 180 days

o Security requirement.

o 25%-35% cash margin.

o 100% collateral security in the form of residential.

o First charge on current assets.

o Assessment based on a parameterised model

Bank Guarantee:

Our Bank Guarantees are competitively priced with few requirements like cash margin and

collateral security, and will be made available to customers in the shortest possible time. There

is an upper limit of up to Rs.1 crore with a tenor of guarantee of up to 18 months, and security

requirement of 25% cash margin and 100% collateral security in the form of residential property

or liquid securities.

ICICI Bank also issues Bank Guarantees in foreign currency on behalf of our exporters for

approved purposes as defined under FEMA, subject to availability of credit limits or against

100% cash margin.

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Services:

ICICI Bank offers products and services tailored to meet customer’s industry's unique needs.

1) Automotive:

The automotive sector in India is booming as Indians take to cars and two-wheelers like never

before. The world’s biggest brands are already here, with many more to follow. India is also fast

becoming an important manufacturing hub for the major players in the world. Their OEM

suppliers are also following in their footsteps to set up base in India.

Recognising the unique needs of automotive & auto component manufacturers, ICICI Bank has

set up a team of automotive specialists who can tailor-make a solution that suits customer’s

business.

The bank’s long-term relationships with leading auto-manufacturers ensure customers get the

quickest turnaround times possible, with the network of more than over 600 branches and 1800

ATMs giving them 24/7 accessibility. A single-window access to all the banking solutions

customers may need ensures quick approvals and minimal paperwork. ICICI’s modern

approach to business banking backed by their superior technology helps provide swift anytime,

anywhere banking services via our branch/ATM network, phone, mobile and Internet.

With a Relationship Manager always at customer’s beck and call, there will be nothing to stop

customer’s business from speeding ahead.

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2) Construction:

The Indian economy is growing at a rapid pace. Predictably, the construction sector estimated

at Rs. 3, 00,000 crores is booming as well, be it infrastructure or commercial retail and

residential space. An outlay of over Rs. 18, 00,000 crores is projected over the next 10 years.

ICICI Bank has pulled out all stops to ensure customers get all the financial support they need

to take advantage of the opportunities and face the unique challenges in this sector. The bank’s

in-house construction industry specialists will customize end-to-end solutions for customer’s

right from the bidding process and implementation of the project through to the defect liability

period. These range from Performance & Financial Guarantees to term loans for Equipment

Financing & working capital facilities to buy raw materials.

ICICI’s modern approach to business banking backed by our superior technology helps provide

swift anytime, anywhere banking services via the branch/ATM network, phone, mobile and

Internet. Whether customers are a small contractor striving to grow, or an established player

seeking to grow globally, ICICI Bank provides the foundation to grow their business.

3) Pharmaceuticals:

Whether it's the challenges of Schedule M or awareness of best practices, nobody understands

the fundamental issues of the pharma business better than customers. Except, perhaps, ICICI

Bank.

Recognising the need to stay abreast of the latest developments in this rapidly evolving sector,

the bank’s team of pharma specialists bring to the table just the expertise customer’s business

needs. Whether customers are involved with formulations or APIs – for local or global markets,

what customers get is a potent mixture of industry understanding backed by working capital

facilities, forex services and special lending programs customised for you.

It is a platform to provide value to the pharmaceutical manufacturing customers of ICICI Bank

through focus, innovation and sharing. The bank’s modern approach to business banking

backed by their superior technology helps provide swift anytime, anywhere banking services via

their branch/ATM network, phone, mobile and Internet.

4) Apparels:

The export quota regime has been dismantled ushering in an era of open competition. China

may be the leader by far in terms of sheer volume. But there are plenty of value opportunities

both as a mass manufacturer and as a leading player in the value-added premium segments.

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Many Indian suppliers are already modernizing and diversifying their operations to meet

pressures of scale and speed of delivery.

The Indian domestic market too is witnessing a huge transformation and growth in organized

retail space across malls, departmental stores and premium boutiques. Customers are brand-

hungry and ready to pay premiums to make lifestyle and personal statements. New players are

emerging in regional and national markets.

ICICI Bank is geared to meet customers’ requirements in the apparel sector through strong

solutions for all their needs:

1) Term loans in rupee and foreign currency with TUFS benefits for financing of expansion

and modernisation plans.

2) Competitively priced working capital and other products (including export finance in

foreign currency) in order to optimise costs of lending.

3) Sophisticated derivative product delivered in a simplified and convenient manner as a

source of hedging and optimising profits.

Finally, ICICI Bank has cut down approval time by standardising the assessment process

through use of scoring models.

5) Transport:

Indian road transport industry is witnessing a sea-change. Infrastructure investments in

highways and ports, entry of professional 'outsourced' logistics service companies in the

corporate sector, introduction of tracking technology, better quality and more choice of vehicles -

all this is opening up new opportunities and challenges.

The growth of domestic tourism and migration is leading to increase in travel while the growth of

connectivity is creating new paths of commerce and business.

ICICI Bank offers those in the transport business a host of advantages. From faster sanction

due to parameters-based approach, to interest cost savings according to usage. A Relationship

Manager is the single point contact for all customers needs.

ICICI Bank's Roaming Current Account makes a powerful difference to customer’s business.

Bank and withdraw money in any branch or ATM across the country. Bank anytime from 8 a.m.

to 8 p.m. at any of the branches. It helps in transferring funds without a cheque or a DD, through

a phone call or through Internet Banking. It uses the cash management services for collections

and payments across the country.

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6) Gems & Jewellery:

The Gems & Jewellery industry in India is witnessing downstream integration into the retail

space, alliance marketing with end customers in the export arena, and overall dynamic growth

in domestic and international markets, across the B2B and B2C space.

ICICI Bank has been serving firms in gems and jewellery sector with comprehensive services

and in-depth expertise.

ICICI have a range of credit facilities and derivative products at competitive rates. The bank’s

Gems and Jewellery experts know exactly the customer’s business needs. Or, if it's

convenience customer’s require, bank’s vast network of branches and ATMs are just the thing

for the customers. Additionally, ICICI Bank's international experience and expertise in the global

jewellery trade gives customers the most complete forex products and advisory services you

need to stay ahead of competition.

7) Travel & Tourism:

ICICI Bank’s industry-specific solutions help customer leverage every opportunity for growth and

maximize their profits. Bank’s team of industry experts customizes solutions designed to fit

customer’s unique business requirements. Customer’s leverage the ‘anytime anywhere’

business banking advantage to manage their finances efficiently and easily. With the national

reach and global network, the bank can now take the business places.

Industry solutions

Funding solutions for Hotels, Travel & Tourism sector: ICICI provide project finance in the form

of term loans or working capital against card receivables. Rapid Travellers Cheque Program:

The bank purchase TC's from Money Changers on prefixed transaction exposure/volume.

Special Foreign Currency Tour Operators Account: The bank handle collections of foreign

currency and remittances from the outbound tour operators and inward remittances, for hotels

and tour reservation made abroad. Derivatives for Risk Mitigation: ICICI help customers hedge

the foreign currency inward remittances and local currency outward remittances through our

forex services.

ICICI’s customers include

Hotels41

Aviation Training Institutes

Money Changers

Tour Operators

Ticketing Agents Consolidators

Travel Vocational Training Institutes

Travel Portals

8) Educational Institutions:

Whether the customer’s companies are govt. aided or privately managed, in primary, secondary

or higher education, they need a bank that understands your special needs.

Be it long-term loans for infrastructure expansion or cash credit, ICICI Bank works with

accredited & recognized educational institutions all over India, and offers the clients some of the

best options for growth and expansions.

DEMAT SERVICES:

Demat Services

ICICI Bank Demat Services boasts of an ever-growing customer base of over 11.5 lacs account

holders. In ICICI’s continuous endeavour to offer best of the class services to the customers the

bank offer the following features: 

e-Instructions: Customers can transfer securities 24 hours a day, 7 days a week through

Internet & Interactive Voice Response (IVR) at a lower cost. Now with "Speak to transfer",

customer can also transfer or pledge instructions through our customer care officer.

Consolidation Demat Account: Customers can dematerialise the physical shares in various

holding patterns and consolidate all such scattered holdings into the primary demat account at

reduced cost.

Digitally Signed Statement: Customers can receive the account statement and bill by email.

Corporate Benefit Tracking: Customers can track the dividend, interest, bonus through the

account statement.

Mobile Request: Customers can access the demat account by sending SMS to enquire about

Holdings, Transactions, Bill & ISIN details.

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Mobile Alerts: Customers can receive SMS alerts for all debits/credits as well as for any

request which cannot be processed.

1) Dedicated customer care executives specially trained at the bank’s call centre, to

handle all their queries.

2) Countrywide network of over 235 branches, customers are never far from an ICICI Bank

Demat Services outlet.

Mutual Funds:

A Mutual Fund is a trust that pools the savings of a number of investors who share a common

financial goal. The money thus collected is then invested in capital market instruments such as

shares, debentures and other securities. The income earned through these investments and the

capital appreciation realised are shared by its unit holders in proportion to the number of units

owned by them. Thus a Mutual Fund is the most suitable investment for the common man as it

offers an opportunity to invest in a diversified, professionally managed basket of securities at a

relatively low cost. The flow chart below describes broadly the working of a mutual fund:

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There are many entities involved and the diagram below illustrates the organisational set up of a

mutual fund:

Domestic Mutual Funds

Mutual Funds pool money of various investors to purchase a wide variety of securities while

pursuing a specific goal. Selection of Securities for the purpose is done by specialists from the

field. Returns generated are distributed to the Investors. At ICICI Bank NRI services, they help

the customers to determine which types of funds customers need to meet their investment

goals.

This may include the following types of funds:

1. Debt: Liquid schemes, Income schemes, G-sec schemes, Monthly Income Schemes

etc.

2. Equity: Diversified Equity Schemes, Sector Schemes, Index Schemes etc.

3. Hybrid Funds: Balanced Schemes, Special Schemes - Pension Schemes, Child

education Schemes etc.

The wealth manager helps people to identify an appropriate mix of Mutual Fund

schemes for their portfolio using asset allocation strategies. People can invest in

various schemes of multiple mutual funds with decent performance record.

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Why to Invest?

1) Professional Money Management and Research: Mutual funds are managed by

professional fund managers who regularly monitor market trends and economic

trends for taking investment decisions. They also have dedicated research

professionals working with them who make an in depth study of the investment

option to take an informed decision.

2) Risk Diversification: Diversification reduces risk contained in a portfolio by

spreading it. It is about not putting all the eggs in one basket. As mutual funds have

huge corpuses to invest in, one can be part of a large and well-diversified portfolio

with very little investment.

3) Convenience: With features like dematerialized account statements, easy

subscription and redemption processes, availability of NAVs and performance

details through journals, newspapers and updates and lot more; Mutual Funds are

sure a convenient way of investing.

4) Liquidity: One of the greatest advantages of Mutual Fund investment is liquidity.

Open-ended funds provide option to redeem on demand, which is extremely

beneficial especially during rising or falling Markets.

5) Reduction in Costs: Mutual funds have a pool of money that they have to invest.

So they are often involved in buying and selling of large amounts of securities that

will cost much lower than when customers invest on their own.

6) Tax Advantages: Investment in mutual funds also enjoys several tax advantages.

Dividends from Mutual Funds are tax-free in the hands of the investor (This

however depends upon changes in Finance Act). Also, capital gain accrued from

mutual funds investments for period of over one year is treated as long term capital

appreciation and is taxed at a lower rate of 10% without benefit of indexation or

20% with benefit of indexation.

7) Other Advantages: Indian Mutual fund industry also presents several other

benefits to the investor like: transparency - as funds have to make full disclosure of

investments on a periodic basis, flexibility in terms of needs based choices, very

well regulated by SEBI with very strict compliance requirements to investor friendly

norms.

Where to Invest? :

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ICICI Bank has tied up with several Mutual Funds so as to provide customers the convenience

of Varied Investment.

People have a choice to invest with the top 17 AMCs in India offering around 300 schemes.

Advantages of Mutual Funds:

The advantages of investing in a Mutual Fund are:

Professional Management

Diversification

Convenient Administration

Return Potential

Low Costs

Liquidity

Transparency

Flexibility

Choice of schemes

Tax benefits

Well regulated

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Insurance

1) LIFE INSURANCE:

Investment and Saving Plans

Endowment policies are a good way of putting aside the savings today for a future goal -

whether it's to buy a house in India or fund the entrepreneurial vision. ICICI’s savings-oriented

policies are designed to make the savings grow and have them available to the customers at

the end of a fixed number of years or through the term of the plan.

Life Time II

Presenting Life Time & Life Time II – unit –linked plans that meets the changing needs over a

lifetime. These solutions have been developed to meet the savings, protection and investment

needs at every stage in life.

Protection

-Choose a specified level of protection (available only with LifeTime).

- Two levels of Sum Assured to choose from (available only with LifeTime II).

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- Flexibility to increase or decrease the sum assured.

- Add-on riders to protect clients against any eventuality.

Saving:

- Flexibility to increase or decrease your contribution.

- Facility of Premium Holiday, wherein the policy continues even if there is a temporary break in

the payment of annual contribution (available only with LifeTime).

- Facility of Automatic Cover Continuance, wherein the policy continues even if there is a

temporary break in the payment of annual contribution (available only with LifeTime II).

- Facility to top-up the investment any time customers have surplus funds.

- Additional allocation of units on a periodic basis.

- Loans against the policy.

Investment:

- Choose from among four funds, based on the investment objective and risk appetite.

-- Choice to switch between investments options (4 free switches every policy year).

Invest shield Gold

A unit-linked insurance plan with an assurance of Capital Guarantee, which offers the benefit of

a limited premium payment term. An ideal plan for protection with wealth creation that offers the

flexibility of a limited premium paying term.

- Flexibility to choose a premium payment term of 5, 7 or 10 years for a maturity term of 10, 15

or 20 years respectively.

-Flexibility to choose a specific level of protection (Sum Assured), based on a multiple of the

annual premium.

- At the end of the term (maturity), the higher of the value of units or the guaranteed value* is

paid. On death, Sum Assured along with the higher of value of units or the guaranteed value is

payable.

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- Additional credits payable as a percentage of the initial annual premium are paid along with

the death or maturity benefit.

- Facility to make withdrawals from the 6th policy year onwards till the end of the policy term.

Every year withdraw up to 10% of the value of units.

- Flexibility to make additional investment with the help of the top-up facility.

- Flexibility to increase / decrease the annual premium amount

- Total transparency with the premium allocations, and other charges declared upfront.

The guaranteed value of the unit fund is the value of all invested premiums (premiums net of all

charges) along with the declared bonus interests.

Premier Life:

The key features of the plan are:

- Limited premium payment option: Choose from among a 3, 5, 7 or 10 year premium paying

term.

- Choice of sum assured: Choose a sum assured, which is a minimum multiple of 1 and a

maximum multiple of 25 times the annual contribution.

- Additional allocation of units on a periodic basis.

- Facility to top-up the investment any time customers have surplus funds.

- Choose from among four funds, based on the investment objective and risk appetite.

- Choice to switch between investments options (4 free switches every policy year).

- Flexibility to decrease the sum assured.

- Add-on riders to protect against any eventuality.

- Loans against the policy.

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Retirement Plans

Many of the customers picture themselves enjoying the fruits of their labour after retirement -

going on a dream vacation, or helping our child's career take wing. Financing all this will depend

on their personal savings and investments, so it’s important to save for the future from today.

These retirement plans are designed to help customers systematically save, so that they can

enjoy all the things they have dreamed of when they retire.

Life Time Pension-II

Life Time Pension II gives the freedom to choose the amount of premium, and invest in

market-linked funds, to generate potentially higher returns. On the future retirement date, the

accumulated value of the units will be used to purchase an annuity - to provide clients with

regular income for life.

Power to choose the protection level: Choose from either a Zero sum assured or a sum

assured, which will be equal to the product of annual contribution and term.

Power to choose the retirement date: Take advantage of market movements by choosing a

vesting age between 45 - 75 years of age.

Power to increase your investments: Use your surplus funds to top-up the investments during

the deferment period.

Power to invest in a plan based on the priorities: Choose from among four funds, based on

investment objective and risk appetite. If at a later stage the financial priorities change, clients

can switch between the various fund options, absolutely free, 4 times a year.

Power to increase / decrease your contribution: Based on the requirements, increase or

decrease the contribution.

Child Plans

As a responsible parent, people want to ensure a hassle-free, successful life for their child.

However, life is full of uncertainties and even the best-laid plans can go wrong. Smart Kid

Education Plans are designed to provide flexibility and to safeguard the child's future education

and lifestyle, taking all possibilities into account. Smart Kid Child Plans has a bouquet of three

products which can help the clients secure their child's education.

- Unit-linked Regular Premium

- Unit-linked Single Premium

- Regular Premium Smart Kid

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3) GENERAL INSURANCE:

Rishtey Health Insurance - for the parents and other family members in India

2 Years comprehensive medical cover for family

    Advanced treatment covering technologically advanced surgeries

    Re-imbursement of return Air Fare

    Nursing care benefit and free health checkups with 'Cashless' benefit

Overseas Travel Insurance - for the parents and other family members visiting abroad

Covers both structure and contents of home

    Provides protection against natural and manmade calamities

    Protection against fire, burglary, gas cylinder, seepage etc.

    Avail 25% discount on 5 year and 15% discount on 3  year policy

Car Insurance - for the four-wheelers in India

Transfer no claim bonus (NCB)

    Cashless claims facility

    No Documentation. Instant Policy issuance

    Also covers PA and third party legal liability51

Two-wheeler Insurance - for the two-wheeler in India

No documentation. Instant policy issuance

    Effective cover against theft and insurance

    Guaranteed safety for yourself and your two wheeler

    Lightening fast claims service No documentation. Instant policy issuance

    Effective cover against theft and insurance

    Guaranteed safety for client & its two wheeler

    Lightening fast claims service

Student Medical Insurance - for staying abroad during studies

Pay in Rupees, save in Dollars

    Plan meets foreign universities insurance requirements

    No documentation. No health check-up. Instant policy issuance

    Policy is renewable for the second year

Home Safe+ Insurance - for the most prized possession, Home

Secure home and the loan against it

 Loan Liability cover exclusive to ICICI Bank Home Loan customers

Critical Illness, Accidental Death and Disablement Benefit

Protect Home - Structure * Contents 

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Wealth Management:

Wealth is the result of a recognized opportunity. ICICI bank understand this and they work with

customers to plan and manage their financial opportunities prudently. Not just that, the bank

also extend a host of services so that customers can remain focused on immediate objectives

while the bank take care of all the wealth management requirements.

TEAM:

A perfect partnership is about similar perspectives

Goals, challenges, milestones. What drives customers, drives ICICI too. That' s why the bank

have put together a team of determined and seasoned professionals who not just assist

customers in their requirements, but also partner closely in the growth to bring the dreams to

fruition.

Dedicated Wealth Manager

A dedicated Wealth Manager is central to an ICICI Bank Wealth Management relationship and

is the face of the Bank. In fact he/she will be customer’s personal guide to the possibilities of

Wealth Management, and will work closely with clients in achieving their financial goals.

Customers will also have access to a Customer Service Manager/Officer, who will complement

their Wealth Manager.

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Expert minds to give expert solutions

The Wealth Manager is only a part of the larger team which ensures that the money works

harder. Working silently behind the scenes is a team of product experts. These handpicked

experts have a wealth of financial experience under their belt and will assist customers in their

decision-making process.

PORTFOLIO BUILDING:

The investment process starts with understanding customer – their background, investment

objectives, risk tolerance and existing investment pattern. A comprehensive Client Profiling

exercise helps the bank in evaluating customer’s risk appetite and understanding their

investment objectives, which are kept in mind while building their portfolio.

54

Investment Planning

Based on the customer’s investment goal, wealth requirements, investment horizon and risk

profile, the bank construct a suitable asset allocation plan for the clients. During this exercise,

the bank also evaluates and realigns their existing investments as per the suggested asset

allocation, in case required by the customers.

Portfolio Construction

From the wide range of investment avenues, the bank construct appropriate solutions to

implement client’s investment plan and evolve a tailor-made portfolio for the specific

requirements. This would involve execution of investments in debt, equity, structured products

or alternative asset classes as per the suggested asset allocation.

Portfolio Maintenance

The bank monitors customers investments and periodically suggest rebalancing in the portfolio

for maintaining the asset allocation or aligning their portfolio to changes in macro-economic

factors that might affect the investments.

Portfolio Review

As the customer’s investment preferences or financial goals change over a period of time, the

banks reviews their portfolio periodically with the clients to discuss and implement any changes

in asset allocation or portfolio strategy. All with a view to keeping the portfolio healthy at all

times.

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Products:

Online Trading

Mutual Funds

Life & General Insurance

RESEARCH

56

Objective of Research:

There were basically two objectives of the Market Research that was conducted among the

valuable customers of ICICI Bank. These two objectives were:

1) To know about the customers perception about Market Linked Investments;

This was done to find out that what the customers think about various kinds of market

Investments.

2) To find out the knowledge of customers about the various product offerings of ICICI

Bank.

This was done to find out that how much knowledge do the customers have about the various

products of the ICICI Bank.

Before assigning the project:

Being unknown from the Banking sector and its various procedures I had given training about

the ICICI Bank’s core products, different schemes & policies going on currently. I had received

57

training about the various product offerings & Mutual fund schemes so that during my survey I

can convince the valuable customers of ICICI Bank.

Research Work:

In the survey work the method of Questionnaire is being used. The questionnaires are then

studied properly to find out about the various valuable customers of ICICI bank & their

knowledge about the product offerings of ICICI bank.

Field Work:

I conducted a survey for two weeks among various valuable customers. The survey was about

market investment policies. I made the customers aware of various Mutual Fund schemes &

Insurance Plans of ICICI Bank. I gave them information about the Equity market and the market

risks present in today’s scenario. Many customers are convinced about investing their money in

ICICI mutual funds.

Step by step procedure of the survey:

1) Scheduling appointments:

Making telephone calls to all the customers for the appointments. Many a times

customers were busy, sometimes they told me to reschedule the appointments. Many of

the customers were high profile customers so they were busy all through the week

that’s why it was a tough job to take appointments. It proved a challenge for me to get

appointments.

2) View of the customers:

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I interacted with all the customers to know about their views related to the market

investments & the risks associated with them. I asked them that what kind of knowledge

they possess about Insurance Policies such as Life stage pension plans & how much

they know about the various schemes of the ICICI bank. I came to know How they

previously invested their money in different schemes & what kind of profit they gained

earlier.

3) Lack of knowledge:

After this interaction I came to know that some of the people do not have

adequate knowledge about market risks & how to achieve superior returns. Many

people were confused about the proper investments & their returns. They were

confused about the securing their future using various investment plans. Some of the

customers were happy by not investing in the schemes as they thought that they will

loose their principal amount because they do not have proper knowledge.

4) Explanation:

Then I explained them about the market risks & returns. I told them about the various

profitable policies of the ICICI bank and how those policies can be properly used. I

explained them to take the help of wealth managers of ICICI bank for the proper

investments. I made them aware about the efficiency and capabilities of the wealth

managers of ICICI bank. I convinced them that the investments made by the ICICI bank

are much more secure & profitable.

5) Query solutions:

I solved their queries about the various policies & schemes. I told them that why the

policies & schemes of ICICI bank are more profitable as compared to policies of other

financial institutions.

6) Agreed for Investment:

After the solution of the queries some of the customers get convinced to invest in the

Mutual funds of ICICI bank.

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ANALYSIS

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Analysis of Survey:

Sample Size: 100 (As per company’s instructions)

Q1) How would you like to invest your savings?

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During the survey it was found out that the 42% of the customers are interested in Real Estate

as it has a lucrative market these days and 37 % in Mutual Funds. Only few of the customers

were interested in F.D., Direct Equity and Gold investments.

Q2) How much comfortable are you to invest in equity (or market risk) products?

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Nearly 56 % of the customers were not interested in investing in market risk products because

of the threat of capital loss. 42 % of the customers were just comfortable (who are risk takers)

and rest are not at all comfortable in investing.

Q3) what are the major threats in investing money in mutual funds or direct equity?

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The major threats according to 82% customers are Capital loss and according to 12 % Low

Returns. Customers mainly do not invest their money because of these two threats. Rest 4 %

and 2% customers think that less expertise & stock collection are major threats.

Q4) which investment style do you prefer most?

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During the survey it was found that 79% of the customers prefer Growth kind of investment style

and 19% of the customers prefer Value kind of investment style. Only 2% of the customers

prefer others.

Q5) What do you expect from your investment in various portfolios?

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82% of the customers expect Superior returns from their investments. Such customers want

their returns to be more & more. 9% expect principal protection as they do not want to loose

their principal amount, 6% prefer Wealth creation and only 2% prefer store of value.

Q6) Which do you think is more profitable?

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69% of the customers think that Real Estate is more profitable as it is the most lucrative market

at present.10% think that gold equity is more profitable and 21% feels FD as more profitable.

Q7) What time horizons are you looking to do investment?

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Most of the people (82%) want to invest their money for a period of 3-5 years. 11% of the

people want to invest for 1-3 years. Only 5% customers want to invest their money for more

than 5 years. 2% customers want to invest for 1 year.

Q8) Which Market Cap do you think is more profitable?

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Most of the customers (92%) want to invest their money in Mid Cap as they have been among the

best performers in the equity diversified category. Only 5% of the customers want to invest their

money in Small Cap and 3% customers want to invest money in Large cap.

Q9) Are you willing to take assistance of wealth manager to manage your portfolio?

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79% of the customers wanted to take assistance of the wealth managers as they think that the

wealth managers would be more helpful in increasing their returns. 13% of the customers told

that they will think about the assistance.5% of the customers told that they do not require any

assistance and 3% of the customers were not sure about it.

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RESULTS & DISCUSSION

Results & Discussion:

Challenge:

Basic challenge of ICICI is the business growth by addressing the more lucrative and growing

segment of middle-class consumers and emerging corporate.

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Objective of ICICI Bank:

“Our objective of creating a universal bank providing end-to-end financial services,

clearly required solutions which were based on new-generation technology, offered end-

to-end functionality and were highly flexible and scalable. Finacle offered all this and

much more.”

Chanda Kochhar

Joint Managing Director

ICICI Bank Limited

Main challenge faced by the company is retention of clients as well as increasing its

number of clients. The major objective of the survey was to increase the awareness

among customers about the products of ICICI Bank and about the recent policies and

schemes of ICICI bank.

Possible Solution:

Strategic adoption of technology to ensure that ICICI transforms into a universal bank, which will

provide fast and efficient customer service besides offering the whole gamut of banking and

financial services.

The retention of clients can be done with better relationship building, proper interaction and

proper care of clients. By understanding the basic needs of the customers & by analysing the 72

financial situation of the customers the clients can be easily retained. The approach of the

company should not be product centric. It should primarily focus on clients and their needs. The

risk appetite of the customers should be calculated properly. The company should understand

that when and under what circumstances the clients need money. The company should target

on fulfilling the short as well as long term goals.

The company should review the portfolio of clients time to time. By proper monitoring and

rebalancing the portfolio at regular intervals the clients should be retained without any problem.

From the survey ICICI bank gained the knowledge about their various customers & that there is

lack of knowledge among some customers. Through this survey the customers came to know

about the schemes & policies of ICICI bank and also various product offerings of ICICI bank.

With the help of my survey it was found that most of the customers were interested in

investing their money in Real Estate. Principal protection is their main target & the main

risk according to the Clients is Capital loss. They expect superior returns from the

portfolios in which they invest. And a lot of the clients were interested in taking the help

of the Wealth managers from ICICI bank.

Conclusion & Recommendation:

Dedicated workforce to serve people:

Across India, ICICI Bank has Regional Sales Managers to look after Indian & NRI Requirements

and the Region has a dedicated Investment Officer. Before being deputed, the officers complete

a comprehensive Knowledge Belt Certification program and, once deputed, they receive

thorough instructions in financial planning skills and techniques. Throughout their careers

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officers also attend programs to update their skills.

To Service people, when you are abroad, ICICI bank have an ETC Team (Email, Telecalling &

Chat Team) which can help people invest in India Mutual Funds.

All officers in charge of Mutual Funds are certified professionals by AMFI (Association of Mutual

Funds in India)

Many of these officers also hold professional degrees like MBA, CA, ICWA, CFA etc.

Therefore, People should invest their money in ICICI Bank with the help of Wealth Managers.

These wealth managers not only help in achieving superior returns; they also help the

customers from Capital loss.

Implications for Future Research:

1) The pension monies entering the Mutual Fund industry, as retirement products can be offered

for different income groups, age categories, and different service classes, varying asset

allocation with annuity, life cover and withdrawal facility at varying stages.

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2)Innovative products such as target maturity plans and children plans, commodity-based

products, new asset classes such as real estate funds, hedging and arbitrage products and

bundled products providing pension, insurance and mutual fund benefits in one product should

be introduced by the mutual fund industry.

3) The small-cap funds and funds with more-volatile fund flows hold more cash. However, the

fund managers with better stock-picking skills should hold more cash, so that when the market

falls the customers do not have to suffer losses.

4) The wealth managers should keep analyzing the portfolios of their customers for proper

investments and superior returns.

REFERENCES

1) Toor, N.S(2005). Handbook of Banking Information

2) David Aaker, Kumar, George Day. Market Research(2001), John Willey & Sons.

3) Philip Kotler. Marketing Management(2002), Prentise Hall Inc, A pearson Education

Company

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4) Product Offering Brochures, ICICI Bank

5) ICICI Bank website: www.icicibank.com

6) Amfi India website: www.amfiindia.com

7) Google website: www.google.com

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ANNEXURE

Questionnaire:

Name:

Gender:

Age:

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Email-id:

Contact No:

Address:

Q1) How would you like to invest your savings?

a) F.D.

b) Direct Equity

c) Real Estate

d) Mutual Funds

e) Gold

Q2) How much comfortable are you to invest in equity (or market risk) products?

a) Very b) Just c) Not

Q3) What are the major threats in investing money in mutual funds or direct equity?

a) Capital Loss

b) Low Returns

c) Less Expertise

d) Stock Collection

Q4) which investment style do you prefer most?

a) Growth

b) Value

c) Others

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Q5) What do you expect from your investment in various portfolios?

a) Principal Protection

b) Wealth Creation

c) Superior Returns

d) Store of Value

Q6) Which do you think is more profitable?

a) F.D.

b) Real Estate

c) Gold

Q7) What time horizons are you looking to do investment?

a) 1Year

b) 1-3 Years

c) 3-5 Years

d) >5 Years

Q8) Which Market Cap do you think is more profitable?

a) Large

b) Mid

c) Small

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Q9) Are you willing to take assistance of Wealth manager to manage your portfolio?

a) Yes

b) No

c) Will Think

d) Don’t Know

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