In the small town of Valsad in Gujarat 7 pm: Nihar Patnaik, Branch Manager of Valsad ICICI Bank, notices the unusually long queue in front of the ATM counter.

In the small town of Valsad in Gujarat 7 pm: Nihar Patnaik, Branch Manager of Valsad ICICI Bank, notices the unusually long queue in front of the ATM counter of the branch

11 pm: The queue gets longer. After withdrawing funds customers are busy sending Group SMS to their friends and relatives about the ‘‘imminent collapse’’ of ICICI Bank. ‘‘ICICI bandh thai rahiyu che’’ warns the SMS.

Ahmedabad, 6.30 am: Customers can’t wait. ICICI Bank’s ATMs are spitting out money as never before. ‘‘Why take chances?’’ asks one.

April 10, 2008

April 11, 2008

Surat, 7 am: Retired school teacher, Ramniklal Mehta reads local Gujarati newspaper which says ICICI Bank is in trouble and customers are rushing to withdraw funds in Valsad.

By 7.25 am, Mehta joins the long queue at the ATM.

Vadodara, 10 am: All banks are closed due to Ram Navami and ICICI Bank fails to realise the early warning signals. Almost all 115 ATMs in the state are now spewing out money and customers are wary. Telephone calls are made to friends and relatives all over the country as the rumour spreads like wild fire.

Gandhinagar, 1 pm: Despite the scorching 40 degree heat, BSNL employee Bharatbhai Patel who has a salary account with ICICI Bank stands in the queue. He wants to reduce his exposure from Rs 50,000 to Rs 5,000. The ATM machine refuses. Patel gets panicky. So are rest of the customers present there.

Surat, 4 pm: Customers start rioting as ATMs run out of money. Full-length glass windows of ICICI Banks are broken as police steps in.

April 11, 2008

By 12 midnight, the crisis team decides to issue a press statement affirming the solvency of the bank. Many newspapers miss the statement.

Mumbai, ICICI Headquarters, Bandra-Kurla Complex, 7 pm: Retail Banking Executive Director, Chanda Kochhar informs CEO and MD, K V Kamath, Joint MD S N Sinor, and Executive Director, Kalpana Morparia about the Gujarat crisis.

New Delhi, 11.30 pm: By Saturday evening, Delhi alone would withdraws Rs 15 crore extra as compared to normal withdrawals of Rs 5 crore.

Saturday, April 12, 7 am: Morparia calls up RBI Deputy governors, Vepa Kamesan and G P Muniappan and asks them to help out. Dr Bimal Jalan gets a call in Washington about the crisis. The RBI issues a statement within two hours in defence of ICICI Bank.

April 11, 2008

Mumbai, 12 pm: Borivali branch witnesses massive crowd since it opened for business at eight in the morning. Customers line up to withdraw funds through cheques as wells as ATM cards. Some customers even fight and abuse bank officials. ‘‘They charge me Rs 25 even for a single sheet of bank statement... why should I be loyal to this bank?’’ asks a customer. Police called in to maintain law and order.

Ahmedabad, 5 pm: By now, ICICI Banks’ armoured vehicles have transported cash worth crores from RBI vaults to its 35-odd branches and ATMs. Constant refilling helps to restore confidence among customers. Almost Rs 550 crore is physically moved around the country to refill ATMs, bank branches. Bank pastes notice that in spite of holidays it will remain open for business even on Sunday and Monday. Many customers return home.

Valsad, 7 pm: The run on ICICI Bank peters out and branch manager Patnaik takes a sigh of relief.

April 12, 2008

Review of ICICI Bank’s Strategy to Restore Customer Confidence during

Crisis …

Flow About ICICI Major Competitors Financial Structure Pre-Crisis mktg strategy Crisis Impact of Crisis on ICICI Post-crisis mktg strategy Impact of customer confidence Steps taken to restore customer confidence Analysis of the strategy Our Suggestions

ICICI Bank ICICI Bank is India's second-largest bank Largest private sector Bank in India Total assets of Rs. 3,674.19 billion (US$ 77

billion) as of June 30, 2009 Profit after tax Rs. 8.78 billion for the

quarter ended June 30, 2009 ICICI Bank has a network of 1,499

branches and about 4,816 ATMs in India Presence in 18 countries across the globe

Major Competition

Public Banks State Bank of India Bank of India Bank of Baroda Central Bank of India Union Bank of India Canara Bank Dena Bank Allahabad Bank And many others

Private & Foreign banks HDFC Axis Bank IndusInd Bank Standard Chartered HSBC Yes bank Barclays bank Deutsche Bank And many more

ICICI Bank Financial Snapshot

Dip in Performance in Quarter 4 FY09: Low margins. International loan Book remains a Big Concern. NPAs and Restructured Loans will Increase further. Continued deterioration in assets quality. Balance Sheet size to contract. Earnings likely to move Southwards in FY2010-11. Business to go down in coming years. Advances and Deposits to slow

down in FY2010. Rise in Provision & Contingencies.

Under Performed to its Peers

Particulars ICICI Bank HDFC Bank Axis Bank Yes Bank

Loan Growth -3.00 56.00 37.00 32.00

Deposit Growth -11.00 42.00 34.00 22.00

Credit/Deposit Ratio 100.00 69.00 70.00 77.00

Net Interest Margin 2.60 4.20 3.40 3.00

Annualized RoE 6.20 17.60 25.10 21.80

Year of Year – 31st March,2009

Marketing Strategy Introduced concept of branding in the Indian banking industry

Process, People and Physical evidence – brought to life by ICICI

Cash on the celebrity fever – Introduced the concept of brand ambassadors

Introduction of DSA’s and DST’s

Unleashed the power of the internet – introduced the concept of net banking

and e-mail marketing

First bank to focus on retail banking as a driver for growth

Comprehensive data centre availability & data protection solutions

Described by the competitors and industry expert in one word – “Aggressive”

Focus areas of marketing efforts Target marketing and customer acquisition

Share of wallet

Channel strategy and management

Relationship management and database marketing

Product development & innovation

Credit approval

1st Aug ‘08

31st Oct ‘08

The Sub-prime Crisis … Loans offered at Higher Rates than Prime Lending Rates

Target audience was High Risk Potential Defaulters category

Attributes – Unstable Incomes, Low Creditworthiness, Bad Credit

History

Companies went after the “Quick Buck”

Home loans were given at Floating Rates

Borrowers started defaulting due to higher EMIs leading to what we

know as “The Sub-prime Crisis” …

Global banks including Citigroup, UBS, Barclays, HSBC etc. lost

amounts between 1-18 billion dollars as a result of this this crisis

Sudden Death- Impact on ICICI Bank Foreign operations of ICICI Bank reported MTM loss of INR

1060 crores

It was due to exposure to Credit Derivatives and Investments

ICICI Bank stated that the Sub-prime loss could wipe off upto

9% of years profit

Bank clarified that underlying securities would offset losses

ICICI Bank suffered a loss of around INR 300 crores in Q3 and

INR 250 crores in Q4

Bank Stated : remaining losses were notional

Impact of Crisis on Consumer Confidence Customer flocking the branches and ATMs for

withdrawing deposits.

ICICI Bank borrows INR 2000 crore from RBI to suffice customer withdrawals.

10th October: ICICI Bank script plunges 26% on SENSEX and NIFTY

Measures to Restore Confidence13th October 08 : News ICICI Bank asked Moody’s and S&P to state that they

were in No-Risk Zone RBI : ICICI Bank’s Capital adequacy better than SBI and

HDFC ICICI Bank files FIR against malicious SMS Chanda Kochar : ICICI Bank has enough liquidity even

in International Operations K V Kamath: Ignore rumors. ICICI Bank is safe Change in Brand tag line “Hum Hai Na” to “Vishwas hai to subh kuch hai”

Suggestions Prompt in disclosing the extent of foreign exposure

and MTM losses

Financial rating agency like CRISIL and MODY

Get the management as well as the PM and finance minister across all format of media

Well planned and structured PR program which re-in stores confidence among members.

Suggestions (Cont.)

Public Relation Plan

1. Propagate the various initiatives taken and being taken by ICICI BANK. SME programs, CSR, Housing, Education, Automobile etc initiatives under taken.

2. Create an “Emotional chord” with the citizen and investors of faith and trust.

3. Make aware the various accomplishments and the success of ICICI BANK

4. Come up with new sponsorship programs to boost market sentiments

5. Role of ICICI BANK in making India the 2nd fastest growing economy.

Thank You …