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RETAIL BANKING

(WITH SPECIAL REFERENCE TO ICICI BANK)

Submitted By:-
NIDHI CHOUDHARY
AU8/185

INTERNATIONAL SCHOOL OF
BUSINESS & RESEARCH

ACKNOWLEDGEMENT

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“Work is Worship”- so goes the old adage, Herculean task have been overheard by dedicated
and concerted effort of various people who have sensibly and systematically blended their
thoughts.
I acknowledge deep sense of gratitude towards my guide, Ms. Deepthi, for giving me time
and support. I am highly obliged towards Mr. Sanjay Kumar and Mr. Navin Agarwal of ICICI
Bank, Patna for their precious guidance, kind encouragement and timely suggestions.
I also acknowledge a deep sense of gratitude towards Prof. Amit Gupta, Director, ISBR,
Bangalore.
I express my profound sense of gratitude towards to each and every person in ISBR and
ICICI Bank for have provided me with facilities and help for the successful completion of the
project and also for the moral support and co-operation.
Finally, I would like to thank our family and all our friends for helping me to overcome the
hurdles that I faced during the preparation of the project report.

Date:
Nidhi Choudhary
(AU8/185)

CONTENTS

CHAPTER 1

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INTRODUCTION
1.1 General
1.2 An Overview of Banking Industry
1.3 New Generation Banking
1.4 Retail Banking
1.5 SWOT Analysis
CHAPTER-2
Terms Related to Banking
2.1 General
2.2 Dematerialization of Securities (DEMAT)
2.3 Sale/Delivery of Securities
2.4 Purchase/ Receipt of Securities
2.5 Dematerializations
2.6 Pledge
2.7 Freezing/Defreezing
2.8 Corporate Benefit- Dividend, Bonus, Right Issue
2.9 Public Issue
2.10 Nominations
2.11 Transmission
2.12 Demat Account Statement
2.13 Registration for Internet/ Phone Access & E-instructions
2.14 Mobile Banking
2.15 Billing & Payments
2.16 Change of Address & Bank Details
2.17 Change of Rate Card
2.18 Account Security

CHAPTER-3
Introduction to the Study

3.1 Theoretical Backgrounds of the Study


3.2 Objectives
3.4 Research Methodology
3.5 Targeted People

CHAPTER-4
Company Profile
4.1 A Brief Introduction of ICICI Bank Limited
4.2 Highlights

CHAPTER-5

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Bank Deposits
5.1 Preamble
5.2 Types of Deposit Accounts
5.3 Key Features of Different Types of Accounts
5.3.1 Minor’s Account
5.3.2 Account of Illiterate & Blind Person
5.3.3 Addition or Deletion of the Name’s of Joint Account Holders
5.3.4 Dormant Accounts
5.4 Directives on Interest Payments & Term Deposit
5.4.1 Interest Payments
5.4.2 Premature Withdrawal of Term Deposits
5.4.3 Premature Renewals of Term Deposits
5.4.4 Advances Against Deposits
5.5 Deceased Account Holding
5.5.1 Settlement of Dues in Deceased Deposit Account
5.5.2 Interest Payable on Term Deposit in Deceased Account
5.6 Facilitation of Other Banking Services
5.6.1 Stop Payment Facility
5.6.2 Safe Deposit Lockers
5.7 Safeguarding Customer Interest
5.7.1 Customer Information
5.7.2Secrecy of Customer’s Accounts
5.7.3 Insurance Cover for Deposits
5.7.4 Redressal Of Complaints & Grievances
CHAPTER-6
Loans Available at ICICI Bank
6.1 Home Loans
6.2 Persona Loan
6.3 Car Loans
6.4 Farm Equipment Loans
6.5 Construction Equipment Loans
6.6 Loan against Securities
6.7 Loan against Property
6.8 Farmer Finance
6.9 Rural Education Loan

CHAPTER-7
Non-Depository Services
7.1 Consumer Cards
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7.2 Commercial Cards
7.3 Mobile Banking
7.4 Phone Banking
7.5 Common Service Charges
CHAPTER- 8
Demat & Investments
8.1 Demat Service
8.2 Investments
CHAPTER-9
Findings & Conclusion

CHAPTER- 1

INTRODUCTION
1.1General
ICICI Bank is a private sector bank engaged in retail banking, insurance etc. ICICI Bank,
Exhibition Road branch is a newly founded branch that deals in retail banking. Retail banking
refers to the banking, which provides all the financial products and services to its customers.

1.2An Overview of Banking Industry

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The Indian Banking history can be broadly categorized into nationalized private banks
and specialized banking institutions. The Reserve Bank of India acts as a centralized
monitoring any discrepancies and shortcoming in the system. Since the nationalization of
banks in 1969, the nationalized banks have acquired a place of prominence and has since
then seen tremendous progress. The need to become highly customer focused has forced
the slow moving public sector banks to adopt a fast track approach.
The liberalized policy of Government of India permitted entry to private sector banks in
the banking industry. The major differentiating parameter that distinguishes these banks
is the level of service that is offered to the customer. These banks have generally been
established by promoters of reputed or high value domestic financial institutions. The
popularity of these banks can be gauged by the fact that in a short span of time, these
banks have gained considerable customer confidence and consequently have shown
impressive growth rates. Today, the private banks corner almost 4% share of the total
share of deposit. With efficiency being the major focus, these banks have leveraged on
their strength and competencies viz. management, operation efficiency and flexibility,
superior product positioning a higher employee productivity skill.
The private banks with their focused business and services portfolio have a reputation of
being niche player in the industry. A well chalked out integrated strategy has allowed
these banks to operate 70% of their business to urban areas, this statutory requirement has
translated into lower deposit mobilization costs and higher margins to public sector
banks.
Banks are increasingly finding that most viable way of differentiating themselves will be
to successfully manage customer relationship and enhance the overall customer
experience. In future the market space will see banks and non-banks striving to seek
opportunities to profit, in the wake of product customization.

1.3 New Generation Banking


The Indian banking saw dramatic changes in the last decade and so ever since the advent
of liberalization and India’s integration with the worked economy. These economic
reforms and the entry of private players saw nationalized banks revamp their service and
product portfolio to incorporate new, innovative, customer-centric schemes. The Indian
banking finally woke up to the surging demands of the ever-discerning Indian consumer.
The need to become highly customers focused (generated by high competitive levels)
forced the slow-moving public sector banks to adopt a fast track approach. These
customer friendly programs included revamping of the product and service schemes like
credit cards, hassle-free housing loan schemes, educational loans and flexi-deposit
scheme integration of the branch net work by using advance networking technology and
customers personalization programs (through ATM’s and any time banking etc.). Many
banks have started capitalizing on the recent stock market surge by adding (Initial Public
Offering) IPO financing offering option and schemes in their product mix. IPO finance
has received a positive response from the investor and is becoming popular amongst the
business community. The objective of all these strategies was very clear to bridge the
community. The objective of all these strategies was very clear to bridge the service and
product gap that was inherent in the banking system.

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Marketing and branch building programs were also given a new thrust in the liberalized
banking scenario. Promotional budgets were hiked to cater to the new and large
discerning target audience. Banks were now keen on marketing their products and service
through various mediums to reach their core customers. Direct marketing, Internet
marketing, hoarding press ads, television sponsorships, image makeovers etc. become an
integral part of a bank’s marketing mix. To meet the personalized needs of the customer
and in order to differentiate its services, banks repositioned themselves in specialized
fields, like housing loans, car finance, educational loans etc. to optimally service the
customer. Marketing became the new strategy that banks began to propound. Feeding the
customer (with his or her consent) with product and service information and thereby
enticing him towards the bank’s product service portfolio. The lowering of the interest
rate spread on housing loan over the last few years has resulted in a substantial housing
boom. The middle class has been the biggest beneficiary of this development. Investment
in housing is a form of saving. It is a security for future generation. While housing loans
in India are available at 7.5%, the prevailing rates in the U.S. are in 3-4% range. The
middle class would be the highest beneficiary if the interest rate spread on housing loans
were to fall further in line with global norms. The housing sector would experience
further expansion, there would be substantial generation of employment, and GDP would
receive a boost.

1.4 Retail Banking


Retail Banking Group has emerged as the fastest growing segment within ICICI Bank
Ltd. Within RBG, retail channel and liability group mobilize the much-needed resources
at highly competitive rates through deposits and bonds and retail assets and products
group deploys the available resources through various channels like Home Loans,
Personnel Loans, Consumer Durable Loans, Commercial Vehicles Loan etc. in the retail
assets.
Across the world retail banking has been the high volume-low value business proposition.
Enormous amount of resources are required to acquire and service customer in terms of
infrastructure and operation.
Given the current stage of evolution of the Indian market, we have adopted an
organization model that continuous to focus on product and on achieving attention and
dedicated services, and at the same facilitate the widening and deepening of customer
relationships.
Small enterprises and emerging corporate segment has strong synergies with the retail
business in terms of customer profile and servicing is done through technology platform
and retail branches.

1.5 SWOT ANALYSIS


Strengths
➢ ICICI’s distribution network is a major strength of the company. It has physical
presence across 42 cities. It also has a strong network of marketing agents, ATM’s and
call centers.
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➢ ICICI offers a wide range of products and services to its corporate and retail
customers. This has increased its market share and enabled it to move a step ahead to
achieve its vision of being a Universal Bank.
Weaknesses
➢ The company has a large amount of non-performing loans.
Opportunities
➢ The signs of Indian economy reviving have created a lot of opportunities for the
company. The industrial production has gone up by 8% and this is expected to favor
the company.
➢ The revival in the economy will reduce the NPA’s and could result in growth of credit.
Threats
➢ Increased competition from foreign banks, which have begun to foray into financial
services segment, will pose a threat to the company’s market share and hence it’s
bottom-line.

CHAPTER-2
TERMS RELATED TO BANKING

2.1 General
A depository is like a bank where securities are held in electronic form. In India, there are
two depositories- National Securities Depositories Limited (NSDL) and Centeral Depository
Services (CDSL).
Under the depository Act, depositors can avail to the services of the Depositories through
Depository Participant (DP) such as ICICI Bank. DP’s are like bank branches wherein shares
in physical form need to be deposited for converting to electronic (Demat) form.

2.2 Dematerialization of Securities (Demat)


Dematerialization is the process of converting the securities held in physical form
(certificates) to a equivalent number of securities in electronic form and crediting the same to
the investor’s Demat account. Dematerialized securities do not have any certificate numbers
and are detail only in quantity i.e. the securities are fungible.

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Dematerialization of one’s holdings is not mandatory. One can hold ones securities either in
Demat form or in physical form. One can also keep part of one’s holdings in Demat form and
part in physical form. However, a selected list of securities announced by SEBI can be
delivered only in Demat form in the stock exchanges connected to NSDL.

2.3 Sale/Delivery of Securities


Securities transaction can be settled in Demat form for the transactions done on stock
exchanges connected to NSDL at present NSE, BSE, CSE, DSE, LSE, BSE, OTCEI, MCE,
ISE & ASE are connected to NSDL. Trading in dematerialized securities is done through
broker just like trading in physical securities.
Sell Dematerialized Securities
The customer can sell their dematerialized securities in any of the stock exchange linked to
NSDL through a broker of their choice.

2.4 Purchase/Receipt of Securities


All purchases/receipt of securities in one’s account is affected as per ‘Standing Instruction for
Credit given to ICICI Bank to receive credits automatically in the account. If the customers
have not given standing instruction for receiving credits, one is required to give a specific
receipt instruction for each credit in the prescribed form. The date of credit depends on ones
brokers’ instruction and ICICI bank has no control on the same.

2.5 Dematerialization
It is the process of converting the securities held in electronic form in a Demat account to an
equivalent number of securities in physical form (certificates) after debiting the same from
the Demat account.

2.6 Pledge
Securities held in Demat form can be pledged by the client to avail loan/credit facility. Pledge
of securities in NSDL requires that both the borrower and lender should have a Demat
account with any of the DP’s with NSDL. The facility for Inter Depository pledge is not
available.

2.7 Freezing/Defreezing
The client has an option to freeze his accounts in case he does not intend to do any
transaction in the near future. This helps in curbing unauthorized use of Demat account and
prevention of frauds.
Defreezing of the account is required to enable the account again for transaction.
The request for freezing and Defreezing must be submitted in personal prescribed form.

2.8 Corporate Benefit- Dividend, Bonus or Right Issue

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In case the company in which a beneficial owner holds shares in Demat form announces any
corporate benefits like bonus, dividend etc. the beneficial owner will receive the same
directly in his Demat account or bank account depending on the nature of the benefit.
For payment of dividend etc. the company/registrar takes a list of beneficial owners from
NSDL as on the record date/book closure date. Based on this list, company makes payment of
dividend. If the company is making payment through ECS, the company will directly credit
the dividend to the bank account registered by the beneficial owner. If the company is making
payment through cheque/DD, the bank details will be printed on dividend warrant.
In case of a bonus declaration by the company, the bonus securities on the eligible securities
in the beneficial owner’s Demat account by the company/registrar under intimation to the
beneficial owner. This will be reflected in the transaction statement for the period.
In case of rights issue, the beneficial owner will receive an option to subscribe for the eligible
number of securities from the company. These may be in physical or electronic form in the
customers Demat account.
In case of a merger or acquisition, securities in the beneficial owner’s Demat account is
automatically credited and debited by the company as per pre-declared ratio under intimation
to the beneficial owner. This will be reflected in the transaction statement for the period.

2.9 Public Issue


When subscribing for shares in a public issue, one can request for securities, if allotted to be
credited directly to ones Demat account and quote ones Demat account for the purpose in the
application form. After allotment, the securities will be credited directly to ones Demat
account under intimation to one from the company/registrar.

2.10 Nomination
The customer can make a nomination of his account in favor of any person by filing up the
nomination details in the account opening form. This is to enable the nominee to receive the
securities after the death of all the holder(s) of the Demat account.

2.11 Transmission
It refers to transfer of securities from an account to the other as a result of the death of the
sole/ any of the holders of the former account. Here the transfer may be done to:-
➢ Surviving Holders
➢ Nominee where nomination has been made
➢ Legal heir where nomination has not been made.
➢ Common Requirements and effect

2.12 Demat Account Statement

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If there is transaction in previous 30 days, the customer is sent transaction statement. If there
is no transaction in previous 30 days but more than 90 days have passed, a quarterly
statement is sent if there are some holdings in the customer’s account.
Customers who have opted for statement thru email” will get a digital signature obtained
from a Certifying Authority under the Information Technology Act, 2000, which will
authenticate the email.

2.13 Registration for Internet/phone Access & e-instructions


To increase convenience to the customers while reducing work load at ones end in handling
queries, there is a facility for the customer to directly access his Demat Account 24 hours a
day, 365 days a year through internet and phone. It is not mandatory ti hold a banking
account to be able to register for such access.

2.14 Mobile Banking


With mobile banking one has an option to remain updated while one is on the move, without
even calling or logging on to internet.

2.15 Billing & Payments


The bills are generated in the beginning of each month for the previous month. The due date
is mentioned in the bill. However, it is not viable to send bills with amount less than a certain
cut-off amount. i.e. Rs. 50. Customers will receive bills in the next quarter or whenever the
bill amount exceeds the cut-off amount.

2.16 Change of Address & Bank Details


One can request for the following through a common form:-
Change of Address- The client should personally visit the branch. In case of a corporate, at
least one of the authorized signatories should sign the request in presence of the branch
officer.
Change of Bank Details for Receiving Dividend- The bank account details attached with
each Demat account are used to make dividend/interest payments. As per a recent SEBI
circular, it is mandatory for registrar companies to make dividend/interest payments by ECS
wherever bank details for the investors are available.

2.17 Change of Rate Card


One can shift from the standard scheme to the frequent traders scheme or vice-versa. The
application should be made in a prescribed form at ICICI bank. In case of shift from standard
scheme to frequent trader scheme, the customer can specify the date from which the shift
should take place and the application should contain a mandate for recover of Rs. 900.

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In case of shift from frequent trader scheme to standard scheme, the scheme is always
effective from the date when the change in the billing scheme is been done.

2.18 Account Security


Emphasis needs to be given on the fact that the securities that one have in ones Demat
account are similar to the money that one holds in bank account. One needs to take all
precautions for ones Demat transaction as one exercise for bank account.
➢ The TFD booklet should be kept safely just like a cheque book.
➢ The details should not be shared of one’s Demat account number and signature with
anyone.
➢ It should be accepted only if it has pre-printed serial number as well as one’s Demat
account number pre-stamped on each slip.
➢ It should not be signed unless completely filled.
➢ If possible one should make use of web facility to check ones Transactions as frequently
as possible.
➢ “Account freeze” instruction should be given to ICICI bank if one do not intend to
operate ones account for a long time.

CHAPTER-3
INTRODUCTION TO THE STUDY

3.1 Theoretical Background of the Study


The banking industry in India has undergone a sea of change ever since the economic form
process was initiated. There is no doubt that the banking industry continues to play a cardinal
role in spread heading the economic activity of the country. From an industry almost
monopolized by the nationalized bank till the 90’s it has now emerged as a conglomerate of
nationalized, private and foreign banks setting new trends in the way banking is carried out.
The deregulation in the interest rates, grant of functional autonomy to the banks in the area of
credit, entry of foreign banks and emergence of new private banks has made the banking
environment. The whole Indian banking industry scenario is changing while the chunk of
other total share in bank credit continues to be dominated by public sector banks, the increase
boost given to foreign and private participation is expected to make banking more
challenging.
Lately, Indian banks are diverting from their bread and butter business of lending and
accepting deposits, and are resorting to other related activities. Any private or foreign banks
is found to have spread its wings across a variety of business starting from housing finance,
credit finance, credit cards, investment banking, internet banking etc. with a lot of thrust on
retail and consumer loans to lending to small and medium enterprises an agriculture. To
sustain the market share and maintain the profitability, banks including the nationalized ones
are trying to incorporate product diversity and with more focus on customer needs.

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Most of the private banks are moving towards the ‘Universal Banking’. Universal Banking
means the banking in which the banks have all the financial products and services for its
customers.
Now there is a need to observe how these private banks are going to apply the concept for
customer satisfaction and for the growth of business in emerging area of finance. The
information collected were compared with ideal one to find out major drawbacks and best
practices too.

3.2 Objectives
➢ Analytical observation of products related to day-to-day operation of ICICI Bank
Limited.
➢ Comparing and evaluating the real operation with the ideal one and to come out with
valuable suggestions for improvement.

3.3 Research Methodology


The whole research was mainly based on qualitative research. Grey areas were fished out
through pilot survey. The research was based on an unstructured and undisguised observation.

3.4 Targeted People


The target group includes the bank officials including Branch Manager, Branch Operations
manager, Assistant Manager and Senior Officers.

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CHAPTER-4
COMPANY PROFILE
4.1 A Brief Introduction of ICICI Bank Limited
ICICI Bank is India's second-largest bank. The Bank has a network of about 573 branches
and extension counters and over 2,000 ATMs. ICICI Bank was originally promoted in 1994
by ICICI Limited, an Indian financial institution, and was its wholly-owned subsidiary.
ICICI was formed in 1955 at the initiative of the World Bank, the Government of India and
representatives of Indian industry. The objective was to create a development financial
institution for providing medium-term and long-term project financing to Indian businesses.

In the 1990s, ICICI transformed its business from a development financial institution offering
only project finance to a diversified financial services group offering a wide variety of
products and services, both directly and through a number of subsidiaries and affiliates like
ICICI Bank.

In 1999, ICICI become the first Indian company and the first bank or financial institution
from non-Japan Asia to be listed on the NYSE. In 2001, ICICI bank acquired Bank of
Madura1 Limited.
ICICI Bank set up its international banking group in fiscal 2002 to cater to the cross border
needs of clients and leverage on its domestic banking strengths to offer products
internationally. ICICI Bank currently has subsidiaries in the United Kingdom, Canada and
Russia, branches in Singapore and Bahrain and representative offices in the United States,
China, United Arab Emirates, Bangladesh and South Africa.
In 2003, the first Integrated Currency Management Centre launched in Pune. ICICI Bank
announced the setting up of its first ever offshore branch in Singapore. The first offshore
banking unit (OBU) at Seepz Special Economic Zone, Mumbai, launched. ICICI Bank's
representative office inaugurated in Dubai. Representative office set up in China.ICICI
Bank's UK subsidiary launched. India's first ever "Visa Mini Credit Card", a 43% smaller
credit card in dimensions launched. ICICI Bank subsidiary set up in Canada. Temasek
Holdings acquired 5.2% stake in ICICI Bank. ICICI Bank became the market leader in retail
credit in India.
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In 2004, Max Money, a home loan product that offers the dual benefit of higher eligibility
and affordability to a customer, introduced. Mobile banking service in India launched in
association with Reliance Infocomm. India's first multi-branded credit card with HPCL and
Airtel launched. Kisaan Loan Card and innovative, low-cost ATMs in rural India launched.
CICI Bank and CNBC TV 18 announced India's first ever awards recognizing the
achievements of SMEs, a pioneering initiative to encourage the contribution of Small and
Medium Enterprises to the growth of Indian economy.
In 2005, ICICI Bank opened its 500th branch in India. ICICI Bank introduced partnership
model wherein ICICI Bank would forge an alliance with existing micro finance institutions
(MFIs). The MFI would undertake the promotional role of identifying, training and
promoting the micro-finance clients and ICICI Bank would finance the clients directly on the
recommendation of the MFI. ICICI Bank introduced 8-8 banking wherein all the branches of
the Bank would remain open from 8a.m. to 8 p.m. from Monday to Saturday. ICICI Bank
introduced the concept of floating rate for home loans in India. First rural branch and ATM
launched in Uttar Pradesh at Delpandarwa, Hardoi. "Free for Life" credit cards launched
wherein annual fees of all ICICI Bank Credit Cards were waived off. ICICI Bank and Visa
jointly launched mChq – a revolutionary credit card on the mobile phone. Private Banking
Masters 2005, a nationwide Golf tournament for high net worth clients of the private banking
division launched. This event is the largest domestic invitation amateur golf event conducted
in India. First Indian company to make a simultaneous equity offering of $1.8 billion in India,
the United States and Japan. Acquired IvestitsionnoKreditny Bank of Russia. ICICI Bank
became the largest bank in India in terms of its market capitalization.

In 2006 ,ICICI Bank became the first private entity in India to offer a discount to retail
investors for its follow-up offer. ICICI Bank became the first Indian bank to issue hybrid
Tier-1 perpetual debt in the international markets. ICICI Bank subsidiary set up in Russia.

In 2007, introduced a new product - 'NRI smart save Deposits' – a unique fixed deposit
scheme for non resident Indians. Representative offices opened in Thailand, Indonesia and
Malaysia. ICICI Bank became the largest retail player in the market to introduce a biometric
enabled smart card that allows banking transactions to be conducted on the field. A low-cost
solution, this became an effective delivery option for ICICI Bank's micro finance institution
partners. Financial counseling centre Disha launched. Disha provides free credit counseling,
financial planning and debt management services. Bhoomi puja conducted for a regional hub
in Hyderabad, Andhra Pradesh. ICICI Bank's USD 2 billion 3-tranche international bond
offering was the largest bond offering by an Indian bank. Sangli Bank amalgamated with
ICICI Bank. ICICI Bank raised Rs 20,000 crore (approx $5 billion) from both domestic and
international markets through a follow-on public offer. ICICI Bank's GBP 350 million
international bond offering marked the inaugural deal in the sterling market from an Indian
issuer and also the largest deal in the sterling market from Asia. Launched India's first ever
jewellery card in association with jewelry major Gitanjali Group. It became the first bank in
India to launch a premium credit card -- The Visa Signature Credit Card. Foundation stone
laid for a regional hub in Gandhinagar, Gujarat. Introduced SME Toolkit, an online resource
centre, to help small and medium enterprises start, finance and grow their business. ICICI
Bank signed a multi-tranche dual currency US$ 1.5 billion syndication loan agreement in
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Singapore. ICICI Bank became the first private bank in India to offer both floating and fixed
rate on car loans, commercial vehicles loans, construction equipment loans and professional
equipment loans. In a first of its kind, nationwide initiative to attract bright graduate students
to pursue a career in banking, ICICI Bank launched the "Probationary Officer Programme".
Launched Bank@home services for all savings and current a/c customers residing in India
ICICI Bank Eurasia LLC inaugurated its first branch at St Petersburg, Russia.
In 2008, ICICI Bank enters US, launches its first branch in New York. ICICI Bank enters
Germany, opens its first branch in Frankfurt. ICICI Bank launched iMobile, a breakthrough
innovation in banking where practically all internet banking transactions can now be simply
done on mobile phones. ICICI Bank concluded India's largest ever securitization transaction
of a pool of retail loan assets aggregating to Rs. 48.96 billion (equivalent of USD 1.21
billion) in a multi-tranche issue backed by four different asset categories. It is also the largest
deal in Asia (ex-Japan) in 2008 till date and the second largest deal in Asia (ex-Japan &
Australia) since the beginning of 2007.
Today, 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
specialized subsidiaries and affiliates in the areas of investment banking, life and non-life
insurance, venture capital and asset management.

4.2 Highlights
➢ 35% increase in profit after tax to Rs. 6.15 billion in Q4-2005 from Rs. 4.55 billion in
Q-2004.
➢ 22% increase in profit after tax to Rs. 20.05 billion in FY2005 compared to 16.37
billion in FY2004.
➢ Improvements in net interest margin to 2.4% in FY2005 compared to 1.9% in
FY2004.
➢ 79% increase in fee income to Rs. 20.98 billion in FY2005 from 11.75 billion in
FY2004.
➢ 46% year-on-year growth in advances and 34% growth in total assets.
➢ 68% year-on-year growth in retail portfolio, now constituting 61% loans.
➢ Deposit growth of 47% in FY2005 compared to system deposit growth of 14%.
➢ Reduction in net NPA ratio to 2% on March 31,2005 from 2.9% on March 31,2004.

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CHAPTER-5
BANK DEPOSITS

5.1 Preamble
One of the important functions of the bank is to accept deposits from the public for the
purpose of lending. In fact, depositors are the major stakeholders of the banking system. The
depositors and their interests from the key area of the regulatory framework for banking in
India and this has been enshrined in the Banking Regulation Act, 1949. The Reserve Bank of
India is empowered to issue directives/advices on interest rates on deposits and other aspects
regarding conduct of deposit accounts from time to time. With liberalization in the financial
system and deregulation interest rates, banks are now free to formulate deposit products
within the broad guidelines issued by RBI.
This policy document on deposits outlines the guiding principles in respect of formulation of
various deposit products offered by the bank and terms and conditions of governing the
conduct of the account. The document recognizes the right of depositors and aims at
dissemination of information with regard to various aspects of acceptance of deposits from
the members of the public, conduct and operations of various deposits accounts, method of
disposal of individual customers and creates awareness among customer of their right.
While adopting this policy, the bank reiterates its commitments to individual customers
outlined in Bankers’ Fair Practice Code of Indian Banks’ Association. This document is a
board framework under which the rights of common depositors are recognized. Detailed
operational instructions on various depositors are recognized. Detailed operational
instructions on various deposits schemes and related services will be issued from time to
time.

5.2 Types of Deposit Accounts


The deposit products can be broadly categorized in the following types:-
➢ “Saving Deposits” means a form of deposit which is subject to restriction as to the
number of withdrawals permitted by the bank during a specified period.
➢ “Term Deposits” means a form of deposit received by the bank for a fixed period
withdrawal only after the expiry of the fixed period and includes deposits such as
Recurring/Fixed deposits etc.
➢ “Current Account” means a form of demand deposit where withdrawals are allowed any
number of times depending upon the balance in the account or up to a particular agreed
amount and will also include other deposit accounts which are neither Saving nor Term
deposit.
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5.3 Key Features on Operation of Different Types of Accounts
➢ The bank before opening any deposit account will carry out due intelligence as required
under “know your customer” guidelines given by RBI and or such other norms or
procedures adopted by the bank.
➢ The account opening forms and other materials would be provided to the prospective
depositor by the bank. The same will contain details of information to be furnished and
documents to be produced for verification and records.
➢ For deposit products like saving account and current account, the bank will stipulate
certain minimum balances to be maintained as part of terms and conditions of such
accounts.
➢ Saving bank account can be opened for eligible person, persons, organizations,
agencies.
➢ Current account can be opened by individual, partnership firm, private and public
limited companies etc.
➢ Term deposit account can be opened by individuals, partnership firms, trusts, HUF’s
etc.
➢ The due diligence process, while opening a deposit account will involve satisfying
about the identity of the person, verification of address, satisfying about his occupation
and source of income. Obtaining introduction of the prospective depositor from a
person acceptable to the bank and obtaining recent photographs of the account opener.
➢ Under KYC norms the bank is required by the law to obtain PAN or GIR number.
➢ Deposits account can be opened by an individual in his own name or by more than one
individual in their own names. Minors can also open account jointly with natural
guardian.
➢ Operation of Joint Account: The joint account opened by more than one person can be
operated by single individual or more than one individual jointly. The mandate can be
modified with the consent of all account holders.
➢ The joint account holders can give any of the followings mandates for the disposal of
balance in the above account:-
a) Either or Survivors: If the account is held by two individual say A&B the final
balance along with the interest, if applicable, will be paid to survivor on the death of
anyone of the account holders.
b) Anyone or Survivors: If the account is held by more than two persons say A,B & C,
the final balance along with the interest, if applicable, will be paid to the survivor on
the death of any two account holders.

18
The above mandates will be applicable to or become operational during the tenure of the term
deposit on or after the date of maturity of term deposit. This mandate can be modified by
consent of all account holders.
➢ At the request of the depositor, the bank will register mandate power of attorney given
by the customer authorizing another person to operate the account on his behalf.
➢ The term deposit account holders at the time of placing their deposits can give
instructions with regard to closure of deposit or renewal of deposit for further period on
the date of maturity.
➢ Nomination facility is available on all accounts. It can be made in favor of one individual
only. It can be cancelled or changed by the account holder any time.
➢ Bank recommends that all account holder avail to the nomination facility. The nominee
in the event of death of the depositor will receive the outstanding balance in the account
as a trustee of legal heirs.
➢ A statement of account will be provided by the bank to savings bank as well as current
account holders periodically as per terms and conditions of opening an account.
➢ The deposit account may be transferred to any other branch of the bank at the request of
the depositor.
5.3.1 Minor’s Account
a) The minor can open savings bank account and it can be operated by natural guardian
or by minor himself/ herself if they are above the age of 10. The account can also be
opened jointly.
b) On attaining majority, the erstwhile minor should confirm the balance in his/her
account and if the guardian operated the account, fresh specimen signature of the
minor would be obtained and kept on record for operational purposes.
5.3.2 Account of Illiterate/Blind Person
The bank may at its discretion open deposit accounts other than current accounts of illiterate
person. The account of such person may be opened provided the/she calls the bank personally
along with a witness who is known both to the depositor ad the bank. At the time of
withdrawal, deposit etc, the account holder should affix his/her thumb impression or presence
of the authorized officer who should identify of the person. The bank will explain the need
for proper care and safe keeping of the person given to the account holder.
5.3.3 Addition or Deletion of the Name’s of Joint Account Holders
Accounts, which are not operated for a considerable period of time, will be transferred to a
separate dormant inoperative account status in the interest of the depositor as well as the
bank. The depositor will be informed about the charges, if any. The depositor may request to
activate the account.

5.4 Directives on Interest Payments & term Deposits


19
5.4.1 Interest Payments
➢ Interest shall be paid on savings account at the rate specified by RBI. The bank decides
the interest rate within the general guidelines of RBI.
➢ The rate of interests will be prominently displayed in the branch premises and on its
website.
➢ The bank has statutory obligation of deducting tax if the total amount payable exceeds the
amount specified by Income Tax Act. The bank will issue Tax Deduction Certificate
(TDS).
5.4.2 Premature Withdrawal of Term Deposit
The bank on request from the depositor, at its discretion may allow withdrawal of term
deposit before completion of the period of deposit agreed upon at the time of placing the
deposit. The bank shall declare their penal interest rates policy for premature withdrawal.
5.4.3 Premature Renewal of Term Deposits
In case the depositor desires to renew the account, the bank will permit it at the applicable
date of the date of renewal, provided the deposit is renewed for a period longer than the
balance period of original deposit. The bank will be paid interest at the rate applicable to the
period for which it stayed with the bank and not the contracted rate.
5.4.4 Renewal of Overdue Term Deposits
When a term deposit is renewed on maturity, on renewed deposit interest rate for the period
specified by the depositor as applicable on the date of the maturity would be applied.
5.4.5 Advances against Deposits
The bank may consider loan overdraft facility against term deposits duly discharged by the
depositor on the execution of necessary security documents.

5.5 Deceased Account Handling


5.5.1 Settlement of Dues in Deceased Deposit Account
➢ If the depositor has registered nomination with the bank, the balance outstanding will be
transferred to the nominees account after verification about the identity of the nominee.
➢ The above procedure will be followed in even in joint account.
➢ In a joint account, when one joint account holder dies, the payment is made to the legal
heirs of the deceased person and surviving depositor jointly.
➢ In absence of nomination and where there are no disputes, the bank will pay the amount
to the account of deceased person against joint application and indemnity by all heirs or
the person mandated by legal heirs to receive the payment on their behalf without
insisting on the legal documents up to the limit approved by the bank.
5.5.2 Interest on Term Deposit in Deceased Account

20
➢ In event of death of depositor before the date of maturity the bank shall pay interest at the
contracted rate till the date of maturity.
➢ However, if the depositor dies after date of maturity, the bank shall pay interest at saving
deposit rate

5.6 Facilitation of Other Banking Services


5.6.1 Stop Payment Facility
The bank will accept stop payment by depositor in respect of cheques issued by them.
Charges as specified will be recovered.
5.6.2 Safe Deposit Lockers
It may be hired by individual or jointly. Nomination facility is available to the individuals
holding the lockers singly or jointly. In case of death of the holder the bank will release the
contents of the locker to the legal heirs if the nominations are not made.
5.7 Safeguarding Customer Interest
5.7.1 Customer Information
The bank shall not use the customer information. If the bank purposes to use such, it will be
strictly with the consent of account holders.
5.7.2 Secrecy of Customer Accounts
The bank shall not disclose details of the customer’s account to third party without the
consent of the holder.
5.7.3 Insurance Cover for Deposits
All deposits are covered under insurance scheme offered by Deposit Insurance & credit
Guarantee Corporation of India subject to certain conditions.
5.7.4 Redressal of Complaints & Grievances
Depositors having any complaint with regard to the services rendered, have a right to
approach authority designated by the bank for handling customer grievances.

CHAPTER-6
LOANS AVAILABLE AT ICICI BANK

ICICI Bank offers wide variety of Loans Products to suit the requirements of the customer.
Coupled with convenience of networked branches/ ATMs and facility of E-channels like
Internet and Mobile Banking, ICICI Bank brings banking at doorstep. The customers can
select any of the loan products and provide their details online and the representative will
contact the customer for getting loans.

6.1 Home Loans


21
At ICICI Bank Home Loans, offer unbeatable benefits to ensure the customer get the best
deal without any hassles.
As one of the leading home loan provider, ICICI Bank understands how special building a
new home is and Home Loan help the customer lay the foundation for their dream home.
ICICI offers the most convenient home loan plans to suit the needs. With so many attractive
features in every type of home loan they offer, creating the home the customer always wanted
is no longer a distant dream. Some of the key benefits are:
• Guidance throughout the process
• Home loan amounts suited to your needs
• Home Loan tenure up to 20 years
• Simplified Documentation
• Doorstep Service
• Attractive interest rates
• Sanction approval without having selected a property.
• Free Personal Accident Insurance
• Insurance options for your home loan at attractive premium
No matter what the requirement, they have an appropriate plan for everyone.
6.2 Personal Loans
Thinking of renovating your house? Yearning to buy a new
Laptop? Need financial assistance with marriage related expenses
or your child higher education? An ICICI Bank Personal Loan is
your One-stop-shop for all your financial needs to fulfill any of
your desires.
Key Benefits of ICICI Bank Personal Loan:

• Loan up to 15 lacks
• No security/guarantor required
• Faster Processing
• Minimum Documentation
• Attractive Interest Rates
• 12-60 Months repayment options
With the "Loan on Phone" facility, it is possible to secure a loan even without having to visit your bank
branch. If you have been an ICICI Bank customer for the past 9 months, you might have a pre-
approved loan offer waiting for you.
6.3 Car Loans
Turn your dream into reality. Own that new car you have always desired, with a little help
from us. We offer loans up to 100% of ‘on-road’ cost on select models, and up to 95% of the
ex-showroom price on others. Our interest rates would pleasantly surprise you. What’s more,
you can take up to 6 years to repay the loan.
Worried about paperwork? Relax. The process for getting a loan involves only a few simple
steps and we will tailor-make the loan to suit your needs.

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1. Loan on Phone for Customers: Are you an ICICI Bank customer? Go for a
pre-approved car loan. Call our Customer Care numbers or sms “carloan ” to
567676.

2. Loan on the Strength of Your Income: Submit income proofs as required and
avail of finance up to 100% of the ‘on-road’ cost of the car!*

3. Loan in the absence of Income Proof: We offer car loan for customers without
income proof on producing the bank statement, loan repayment track record, etc.

4. Car Loans with Fixed and Floating Interest Rates: ICICI Bank now offers new
car loans with both fixed and floating interest rate options. The customer can opt
for fixed interest rate or floating interest rate for taking a car loan from ICICI
Bank according to his/her discretion.

6.4 Farm Equipment Loans

➢ Preferred financier for almost all leading tractor manufacturers in the country.
➢ Financing farm equipments in over 381 locations spread across the country.
➢ Fast processing of files with easy documentation.
➢ Flexible repayment options in tandem with the farmer's seasonal liquidity.
➢ Monthly, Quarterly and Half-yearly repayment patterns to choose from.
➢ Comfortable repayment tenures from 1 year to 6 years.

6.5 Construction Equipment Loan


Having funded infrastructure for over four decades, ICICI Bank understand the needs of the
customer better. We offer attractive financial packages for a customer planning to take loan
for construction equipment through our vast distribution network. Our products will suit
equally an entrepreneur to a large business house.
We have tie up with the leading manufacturers of construction equipments for a wide range of
products. We offer funding for the requirement of a new asset and we also take over existing
high cost loans at competitive terms for the customer.
6.6 Loan against Securities
Loans against securities offer you instant liquidity. You don’t have to sell your securities. All you have
to do is pledge your securities in favor of ICICI Bank. We will then grant you an overdraft facility up to
a value determined on the basis of the securities pledged by you. A current account will be opened
and you can withdraw money as and when you require. Interest will be charged only on the amount
withdrawn and the time span utilized. This facility is available only on:- a) Demat Shares b)
Mutual Funds Units c) Insurance Policies d) UTI Bonds e) NSC/KVP (in Demat form only).
6.7 Loan against Property
23
Loan against Property is the perfect way to unlock the hidden value of your property. With
this loan, you can fully benefit from life’s little surprises you may have earlier passed over
due to lack of funds.
Live your dreams with a Loan Against Property! This multi-purpose loan puts funds at your
disposal to use as you wish. What’s more, this loan is available at a reasonable rate and can
be repaid comfortably over as many as 15 years.
The ICICI Bank’s Loan against Property can be used for any purpose.
Expand your business!
No longer do you have to stifle your creative ideas. With funds at your disposal, you can now
expand your business without hesitation.
Get your child married!
Put aside all your monetary worries and celebrate your child’s wedding with pomp and
splendor. Meet all your expenses with ease—when you take an ICICI Bank Loan Against
Property.
Send your child for higher studies!
Education is the cornerstone of your family’s progress. With a Loan against Property, you can
empower your son or daughter to grow into an outstanding achiever.
Fund your dream vacation
Do you want to visit the monuments of Europe or take your children to Disneyland? Wait no
more! Let your property fund your trip!
Renovate your home!
When you decide to renovate your home you want it be your joy and pride. With
ICICI Bank’s Loan against Property you will not need to cut corners. Effortlessly
redo your home to match your dreams.

6.8 Farmer Finance


Providing finance to the farmer for his various needs of inputs and consumption in the form
of crop loans, dairy loans and loans for allied activities to agriculture like irrigation etc. for
input needs and auto loans (two, three and four wheeler) and personal loans for consumption
needs. The customer can also avail of working capital term loan for setting up a poultry
project. Flexible repayment pattern and tenure to align to the cash flow of the customers
6.9 Rural Education Loan
ICICI Bank Rural Educational Institution Finance (REI) caters to the need of privately runs
Educational Institution based out of Rural, Semi Urban and Outside city limit locations. The
product is designed to cater to the specific needs of the education institutions. New products
and features in the existing product are introduced based on regular customer feedback.

24
CHAPTER-7
NON-DEPOSITORY SERVICES
7.1 Consumer Cards
➢ Credit Cards- Credit Cards give you a smart way to shop, and offer you flexibility and
convenience in managing your finances. ICICI Bank credit cards provide a host of
exciting offers and benefits such as low interest rates, rewards programs, and a high credit
and cash limit. We offer different types of credit card to suit the different needs and
requirements for added features.
➢ Travel Card- Presenting ICICI Bank Travel Card. The hassle free way to Travel the
world. Traveling with US Dollar, Euro, Pound Sterling or Swiss Francs; Looking for
security and convenience; take ICICI Bank Travel Card. Issued in duplicate. Offers the
Pin based security. Has the convenience of usage of Credit or Debit card.
➢ Debit Cards- The ICICI Bank Debit Card is a revolutionary form of cash that allows
customers to access their bank account around the clock, around the world. The ICICI
Bank Debit Card can be used for shopping at more than 3.5 Lakh merchants in India and
24 million merchants worldwide.

7.2 Commercial Cards


ICICI Bank Commercial Cards have been designed as payment solutions for large & mid-
sized organizations. A widely accepted concept internationally, Commercial Cards help to
better streamline payment processes & thus increase efficiencies.
➢ Corporate Cards- ICICI Bank Corporate Cards offer better management of employee's
travel and entertainment expenditure; control on employee spends and facilitates
cashless transactions for the employee and the corporate.
A Powerful Payment Solution for the Corporate
Travel and entertainment expenses constitute a significant part of a corporate indirect
operating expense. Our system facilitates the corporate to assign credit limits, which helps
control expenses of its employees. It provides the corporate with a consolidated billing
system. Instead of making payments to the individual employees, the corporate has to make a
single cheque payment to the supplier.

25
➢ Prepaid Cards- ICICI Bank brings to you a complete bouquet of prepaid cards
providing payment solutions at your fingertips. ICICI Bank prepaid cards are a safe &
convenient way for associate payments, disbursements, gifting & small ticket
transactions. Prepaid cards are available on a VISA platform thus providing accessibility
to over one lakh merchant establishments & cash withdrawal from all VISA ATMs in
India.
➢ Purchase Card- The ICICI Bank Purchase Card is a card based payment solution that
streamlines and effectively controls procurement processes of corporate. Purchase card
can be used for expenses like Travel & Entertainment (T&E), Telecommunications,
MRO, Office products, Professional services & Utility payments. A credit limit is
assigned to the corporate on the card and the corporate can thereafter use the card for
making payments to all vendors & suppliers. The corporate gets a credit period of up to
50 days and can thereafter repay ICICI Bank as per the billing due date. And ICICI Bank
Purchase card can be used on any VISA or MasterCard Network.
Purchase card can be used for all Indirect Expenses that an organization would be incurring.
These expenses can be routed through the Purchase Card for extracting maximum benefits
from the solution. Mentioned below are some of the indirect expenditures that an
organization incurs:
• Travel & Entertainment
• Telecommunications
• Utility Payments
• General MRO Goods
• Office products
• Computer and peripherals
• Professional services
• Lease and rental payments
➢ Distribution Card- Distribution Cards are a unique receivables management solution we
offer on the supply chain front. The value proposition in this solution suits large
businesses and immensely enhances process efficiencies and receivable control.
Your company's invoice-to-cash cycle squeezes to 24 hours without any risk or collection /
Cash Management System hassles, and your intermediaries save on remittance costs without
having to open any account with us. All transactions pan-India get credited to the company's
account with all relevant MIS and other requirements. The dealer gets infusion of capital and
a flexible facility to settle transactions, enabling him to scale up his business in a smarter
way.
A measure of the success of this product is that in the fuel industry alone, we are doing a
monthly business of Rs. 900 crore and growing at a very fast clip.
➢ Business Card-The ICICI Bank Business Card is aimed at SMEs as an enabler for their
business. The Business card is a smart alternative to cheques, cash, and personal credit
cards. With its purchasing convenience, cost savings, available credit, and detailed
reporting facilities, the ICICI Bank Business Credit Card offers what your business needs
to stay on top.
26
7.3 Mobile Banking
Bank on the move with ICICI Bank Mobile Banking. With ICICI Bank, Banking is no longer
what it used to be. ICICI Bank offers the Mobile Banking facility to all its Bank, Credit Card,
Demat and Loan customers.
ICICI Bank Mobile Banking can be divided into two categories of facilities:
➢ Alert facility: The ICICI Bank Mobile Banking Alert facility
informs you promptly of the significant transactions in your
accounts. It keeps you updated wherever you go.

➢ Request facility: ICICI Bank Mobile Banking Request


facility enables you to ask for your account information.
7.4 Phone Banking
ICICI bank offers phone banking facility to its customer. The toll free numbers are given to
the customer’s on whom they can operate following types of banking:
➢ They can enquire about their account balances.
➢ They can know about last three transactions.
➢ They can know about dishonor of cheques.
➢ Customers can request for new cheque books
➢ Customers can block their ATM/ Debit cards.
➢ Customers can stop the payments.
7.5 Common Service Charges

Common ICICI Bank savings account facilities for all products except for Wealth
Management / ICICI Group Global Private Clients and unless specified product-wise

27
Mode of calculation of
minimum Quaterly
QAB is the simple average of day-end balances for a calendar quarter.
average balance
(QAB)
Issue of Duplicate Rs.100 per statement at branch or Customer Care (non-IVR), Rs. 50 per
Statement statement through Customer Care (IVR), ATM and Net banking
Issue of pass book Nil on request at base branch where account is maintained.
Issue of duplicate pass
Rs 100 for issuance and Rs 25 per page for updation
book
Issue of loose cheque Rs 25 per leaf
leaves

Remittance Facilities
through own bank
Rs.50 per D.D. up to Rs.10,000;Rs.3 per thousand rupees or part thereof
DD- Issue for DD of more than Rs.10,000, subject to a minimum of Rs.75 and
maximum of Rs. 15,000
DD- Issue by deposit of Rs.4 per thousand rupees or part thereof, subject to a minimum of
cash Rs.100 and maximum of Rs. 15000
DD - Cancellation /
Duplicate / Rs.100 per DD
Revalidation
Rs.75 for PO of up to Rs.10,000, For PO above Rs.10,000 Rs.2.50 per
PO-Issue thousand rupees or part thereof, subject to a minimum of Rs.75 and
maximum of Rs.15000
Rs.150 per PO for amounts up to Rs.50,000, For PO above Rs. 50,000
PO - Issue by deposit
Rs.4 per thousand rupees or part thereof, subject to a minimum of
of cash
Rs.150 and maximum of Rs.15000
PO - Cancellation /
Duplicate / Rs. 100 per PO
Revalidation
NEFT Charges -
Nil
Inward
NEFT Charges - Upto Rs.1 lakh – Rs. 5 per transaction.
Outward at branch Rs. 1 lakh and above – Rs. 25 per transaction
Rs. 1 lakh to Rs.5 lakh – Rs. 25 per transaction.
RTGS-Outward
Rs. 5 lakh and above – Rs. 50 per transaction
RTGS-Inward Nil

Remittance Facilities
through other bank
DD- Issue Rs. 50 per DD for amounts upto Rs.10,000;

28
For DD above Rs.10,000 - Rs.3 per thousand rupees or part thereof
subject to minimum of Rs. 75 and maximum of Rs. 15000
DD- Issue by deposit of Rs.5 per thousand rupees or part thereof, subject to minimum of Rs.100
cash and maximum of Rs. 15000
DD - Cancellation /
Duplicate / Rs 100 per DD
Revalidation
Additional charges for
DD issued on
Correspondent Banks
when the amount of DD
purchased by a single
purchaser in a day at a
single location exceeds
certain limits:
DD greater than Rs. 10
lac, payable at semi- Re. 1 per thousand rupees
urban location
DD greater than Rs. 20
lac, payable at urban Re. 1 per thousand rupees
location
DD greater than Rs. 50
lac, payable at RBI Re. 1 per thousand rupees
centers
EFT Charges- inward Nil
EFT Charges-
Nil
outward
ECS charges
ECS Debit Returns Rs 250 for financial reasons per return
ECS Credit Returns Nil
Charges for certifying
or verifying customer Rs 50/- for signature verification charges
mandates
Cheque Collection Local Nil

Cheque Returns
Local cheque
Rs.100 for every cheque return for financial reasons
deposited by customer
Rs.350 for one cheque return per month; Thereafter, Rs.750 per return in
Cheque issued by the same month for financial reasons
customer Rs.50 for non-financial reasons except for signature verification

29
Outstation cheque
deposited by customer Rs.150 plus other bank charges at actuals per cheque for financial
Debit Card reasons.

Enrolment fee Nil


Late Payment Charges NA
Replacement Card fees
Rs 200 per card
(Lost / Damaged card)
At HPCL outlets:
Nil for transactions above Rs. 400; 2.5% subject to a minimum of Rs. 2
Surcharge on Fuel for transactions up to Rs. 400
purchases At non-HPCL outlets:
2.5 % of Purchase or Rs. 10 per transaction whichever is higher

Surcharge on railway
2.5 % of Bookings as per Visa regulations
bookings
Debit Card PIN re- Rs. 25. [Not applicable if request through Instapin at Branch / Customer
generation Charges Care (IVR)]
Decline of transaction
at any ATM or point of
sale (POS) due to Rs. 25 per transaction
insufficient balance in
the account
Debit Card de - hot listing Rs. 100 per request

Rs. 50 per certificate for balance in Savings Account and Fixed Deposit
Account
Balance Certificate Rs.100 per certificate for balance in INR and the equivalent amount in
USD in Savings Account and Fixed Deposit Account

Interest Certificate Rs 50 per certificate for more than one copy for a financial year.
Nil for closure within 30 days of account opening, Rs.500 for closure
Account closure
during 31 days to one year, Nil after one year of account opening
Record Copy of Paid
Rs. 50 per record
Cheque
Use of
Rs 100 or actual whichever is higher
Fax/Telephone/Modem
Photo attestation Rs 100 per application/letter
Signature attestation Rs 50 per application/letter
Address confirmation Rs.50 per request
Inoperative account Nil
Penalty on Deposit of A charge of Rs. 100/- will be levied. The charge will be Rs. 300/- in case

30
the deposit amount is above Rs. 500/-. Repeat instances of cash deposits
through cheque drop box will attract an enhanced charge of Rs. 500/- for
cash in collector box any amount. For any other exceptional transactions which are not part of
the services offered by ICICI Bank, a charge will be levied as specified
by the bank from time to time.
Rs 50 per cheque and Rs100 for range of cheques covered in single
Stop Payment charges mandate.(No charge is levied if stop payment request is made through
internet Banking)
Foreign Exchange
Rs 22.25 per transaction
Conversion Charges
Lien marking and
unmarking of savings Rs.50 for marking of lien. Rs 50 for unmarking of lien.
account
Reissue of Internet
user id or password
Rs.50 per request
(Branch or non IVR
Customer Care)
Standing Instructions
Setting-up-charge Rs. 150 per standing instruction
Amendment charge Rs 25 per amendment
Execution charge
involving payment As per remittance, plus Rs. 25 towards out-of -pocket expenses
through DD/PO, etc.

(Note: Setting-up charges, amendment charges and execution charges are not applicable in
the case of standing Instructions for transfer from one account of ICICI Bank to another
account of ICICI Bank whether the two accounts belong to the same person or to different
persons.)

Note: Service tax @ 12.36 % (as per Govt rules) w.e.f. 11-May-07 is applicable over and
above charges indicated above. The charges indicated above are subject to periodic revision.

31
CHAPTER-8
DEMAT & INVESTMENTS
8.1 Demat Services
ICICI Bank Demat Services boasts of an ever-growing customer base of over 11.5 lacs
account holders. In our continuous endeavor to offer best of the class services to our
customers we offer the following features:
➢ E-Instructions: You 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", you can
also transfer or pledge instructions through our customer care officer.
➢ Consolidation Demat Account: Dematerialize your physical shares in various holding
patterns and consolidate all such scattered holdings into your primary Demat account at
reduced cost.
➢ Digitally Signed Statement: Receive your account statement and bill by email.
➢ Corporate Benefit Tracking: Track your dividend, interest, bonus through your account
statement.
➢ Mobile Request: Access your Demat account by sending SMS to enquire about Holdings,
Transactions, Bill & ISIN details.
➢ Mobile Alerts: Receive SMS alerts for all debits/credits as well as for any request which
cannot be processed.
Dedicated customer care executives specially trained at our call centre, to handle all your
queries.

8.2 Investments
At ICICI Bank, we care about all your needs. Along with Deposit products and Loan
offerings, ICICI Bank assists you to manage your finances by providing various investment
options ranging from ICICI Bank Tax Saving Bonds to Equity Investments through Initial
Public Offers and Investment in Pure Gold. ICICI Bank facilitates following investment
products:
• ICICI Bank Tax Saving Bonds
• Government of India Bonds
• Investment in Mutual Funds
32
• Initial Public Offers by Corporate
• Investment in "Pure Gold"
• Foreign Exchange Services
• Senior Citizens Savings Scheme, 2004
You can invest in above products through any of our branches. For select products ICICI
Bank also provides the ease of investing through electronic channels like ATMs and Internet
(ICICIdirect.com)
8.2.1 ICICI Bank Bonds
• All ICICI Bank Bonds have been rated "AAA" by CARE and "LAAA" by ICRA
indicating the highest degree of safety for your money
• All Investment in ICICI Bank Tax Saving Bonds issued up to March 2005 are eligible
for tax rebate under Sec 88 to the full extent possible
• Bonds are listed on BSE, NSE
8.2.2 GOI Bonds
8% Savings Bonds (Taxable), 2003
➢ Low risk.
➢ Reasonable investment tenure.
➢ Nomination facility available.
➢ Cannot be traded in secondary market.
➢ Interest income taxable.

8.2.3 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.
Mutual Fund Companies offer various schemes. Investors can choose any particular
Fund/Scheme or mix of Funds/Schemes depending upon their perception towards risk.
Investment is done on the basis of prevailing Net Asset Values of various schemes.
Mutual Funds Investments are subject to Market Risks.

Types of Funds Sold


We will help you determine which types of funds you need to meet your investment goals.
This may include the following types of funds:
• Debt: Liquid schemes, Income schemes, G-sec schemes, Monthly Income Schemes
etc.
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• Equity: Diversified Equity Schemes, Sector Schemes, Index Schemes etc.
• Hybrid Funds: Balanced Schemes, Special Schemes - Pension Schemes, Child
education Schemes etc.
At ICICI Bank we will help you identify an appropriate mix of Mutual Fund schemes for
your portfolio using asset allocation strategies.
Through ICICI Bank you can invest in various schemes of multiple mutual funds with
decent performance record. You can take the aid of our various research reports on mutual
funds and their schemes before choosing a scheme for investment.
ICICI Bank offers investment in Mutual Funds through Multiple Channels. With ICICI
Bank, you can invest in Mutual Funds through following channels
• ICICI Bank Branches
• ICICIdirect.com
Dedicated workforce to serve you
• Before being deputed, our officers complete a comprehensive training program and,
once deputed, they receive thorough instructions in financial planning skills and
techniques. Throughout their careers officers also attend programs to update their
skills.
• 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.

8.2.4 IPO
You can invest in IPOs online through www.icicidirect.com with same convenience of
investing in equities - hassle-free and with zero paper work. Also, get in-depth analyses of
new IPOs issues (Initial Public Offerings) which are about to hit the market. IPO calendar,
recent IPO listings, prospectus/offer documents and live prices will help you keep on top of
the IPO markets.

8.2.5 ICICI Bank Pure Gold


Gold has been traditionally the most favored form of investment for Indians. In fact, India,
even today is amongst the highest consumers of Gold in the world. However, the Gold market
remains largely unorganized with reliability and convenience remaining the key issues for
gold buyers in the country.

ICICI Bank with its ‘Pure Gold’ offer attempts to bridge the gap between the need of the
customers for buying gold and availability of an organized avenue to satisfy that need, by
taking care of the two key components – Reliability and Convenience.
➢ Reliability
24 Carat ICICI Bank Pure Gold is imported from Switzerland. This Gold carries a 99.99%
Assay Certification, signifying highest level of purity, as per international standards.

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➢ Convenience
ICICI Bank Pure Gold is competitively priced based on daily prices in the international
bullion market. Currently, gold is available in 2.5g, 5g, 8g, 20g and 50g categories.

8.2.6 FOREX Services


ICICI Bank's Foreign Exchange Services will help you organize your foreign exchange in the
most hassle free manner. Whether its Foreign Currency, Travelers Cheques or Travel Card,
ICICI Bank Foreign Exchange Services is a one-stop solution to your foreign exchange
requirement.
8.2.7 Senior Citizen’s Savings Scheme

• Scheme Details:

 Senior Citizens Savings Scheme (SCSS) is a Government of India Product.

 9% interest offered to depositors.

 Since the product is offered by Govt of India, this product is one of the most Safest
Investment Option.

 Premature closure of account is possible after one year from the date of opening the
account.

• Advantages of Opening an SCSS Account with ICICI Bank.

 Large number of Branches

 Facility of Direct Credit of Interest to ICICI Bank Account.

 In case the investor does not want to avail Direct Credit facility or ECS facility, 4 Post
Dated Cheques will be sent to Investor every year.

 Account Statement containing the details of Deposit Balance & transactions.

 Phone Banking Facility (for Queries).

CHAPTER-9
FINDINGS & CONCLUSION
9.1 Findings
➢ It was found from the study that bank believes in quality service rather than quantity of
service.
➢ The officials employed are very much enthusiastic about their job.
➢ The officials try to make best relation with the customers.
➢ There is separate counter for NRI services
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➢ The limit of cash vault is Rs. 10, 00,000 for a day.
➢ The registers and files are maintained on a daily basis.
➢ The registers are maintained in a well organized manner.
➢ The marketing strategy of the bank is very attractive.
➢ The bank always tries to attract customers with innovative offers.
➢ The bank is very keen to implement 5’s plan in all its branch
9.2 Conclusion
ICICI Bank has strong banking operations. They believe in customer satisfaction in every
possible way. They are focused on quality of products and services rather than quantity of
products and services. They have a strong banking solution such as FINACLE which was
developed by Infosys. The bank is rapidly growing. They have a aggressive marketing
strategy. The bank provides speedy way of services to its customer with satisfaction. The Five
S plan really helps in the operation of the organization.
The bank has spend millions of rupees in different types of investments on behalf of its
customers. The bank is well known for its 90 days strategies. ’90 days strategies’ means
whatever the bank wants to implement, t implements within 90 days.

Thank
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You!!

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