JLN Marg Jaipur SUMMER TRAINING PROJECT REPORT ON Potential of life insurance industry in jaipur

JAIPUR SUBMITTED TO: MR. FOR FULL TIME DEGREE COURSE OF BACHELOR OF BUSINESS ADMINSTRATION (B.B.A) {2007-2010} SUBMITTED BY: SUBHASH CHAND KUMAWAT B.B.A. PART-III

Acknowledgements If words are considered to be signs of gratitude then let these words Convey the very same My sincere gratitude to ICICI BANK for providing me with an opportunity to work with BANK and giving necessary directions on doing this project to the best of my abilities. I am highly indebted to Mr. Rajeev Batra, Branch Manager and Mr. Ankit Mathur (RM) company project guide, who has provided me with the necessary information and also for the support extended out to me in the completion of this report and his valuable suggestion and comments on bringing out this report in the best way possible. I also thank Prof. .., who has sincerely supported me with the valuable insights into the completion of this project. I am grateful to all faculty members of C-Mat and my friends who have helped me in the successful completion of this project.

SHYORAM KUMAWAT

CONTENTS Sr. No. 1 2 3 4 5 6 7 Subject Covered Acknowledgements Executive Summary My Project Objective Banking Structure in India Introduction History of Banking in India Bank In India Page No.

8 9 10 11 12 13 11 14 15 16

Fact Files of Banks in India Indian Banking Industries ICICI Bank ICICI Group Technology used in ICICI Bank Product and Customer segments Product SWOT Analysis Research Methodology Company Efforts To Ensure Customer Satisfaction

EXECUTIVE SUMMARY

Private banking is a concept which is new and fast emerging in the world of banking where changes have become a necessity in order for banks to survive in this competitive environment

vis--vis not only from the public and private sector banks but also from the foreign banks. The objective of the research is to explore the various products, which a private banker deals into and the systematic process involved to match client requirements with the right kind of product. Through this research one of the main objectives is to explore the reason why most of the banks are injecting private banking as business profile to their set of service offerings. Though private banking evolved in late 80s in Asia, in India its not more than 5 years old. ICICI started it in Aug 2002 and since then it has been a remarkable success. Today there are enormous solutions to cater client needs but what suits best to a client is where private banking fits in. Every client will have different needs, liking and preferences. So a customized portfolio for every client is the need of the day. This research will highlight more on the product portfolio of ICICI Private Banking, how they have changed or innovatively structured to be attractive and competitive.

Research objective
1. To draw the comparative analysis of ICICI BANK Ltd with SBI etc. 2. To identify the major attributes of customer satisfaction. 3. To study customer perception about ICICI BANK Ltd. 4. To identify and study the various ways of ensuring customer satisfaction adopted by ICICI BANK Vs HDFC & SBI.

INTRODUCTION The banking section will navigate through all the aspects of the Banking System in India. It will discuss upon the matters with the birth of the banking concept in the country to new players adding their names in the industry in coming few years. The banker of all banks, Reserve Bank of India (RBI), the Indian Banks Association (IBA) and top 20 banks like IDBI, HSBC, ICICI, ABN AMRO, etc. has been well defined under three separate heads with one page dedicated to each bank. However, in the introduction part of the entire banking cosmos, the past has been well explained under three different heads namely: 6

History of Banking in India Nationalization of Banks in India Scheduled Commercial Banks in India

The first deals with the history part since the dawn of banking system in India. Government took major step in the 1969 to put the banking sector into systems and it nationalized 14 private banks in the mentioned year. This has been elaborated in Nationalization Banks in India. The last but not the least explains about the scheduled and unscheduled banks in India. Section 42 (6) (a) of RBI Act 1934 lays down the condition of scheduled commercial banks. The descriptions along with a list of scheduled commercial banks are given on this page.

HISTORY OF BANKING IN INDIA Without a sound and effective banking system in India it cannot have a healthy economy. The banking system of India should not only be hassle free but it should be able to meet new challenges posed by the technology and any other external and internal factors. For the past three decades India's banking system has several outstanding achievements to its credit. The most striking is its extensive reach. It is no longer confined to only metropolitans or cosmopolitans in India. In fact, Indian banking system has reached even to the remote corners of the country. This is one of the main reasons of India's growth process. The government's regular policy for Indian bank since 1969 has paid rich dividends with the nationalization of 14 major private banks of India. Not long ago, an account holder had to wait for hours at the bank counters for getting a draft or for withdrawing his own money. Today, he has a choice. Gone are days when the most efficient

bank transferred money from one branch to other in two days. Now it is simple as instant messaging or dial a pizza. Money have become the order of the day. The first bank in India, though conservative, was established in 1786. From 1786 till today, the journey of Indian Banking System can be segregated into three distinct phases. They are as mentioned below: Early phase from 1786 to 1969 of Indian Banks Nationalization of Indian Banks and up to 1991 prior to Indian banking sector Reforms. New phase of Indian Banking System with the advent of Indian Financial & Banking Sector Reforms after 1991.

BANKS IN INDIA In India the banks are being segregated in different groups. Each group has their own benefits and limitations in operating in India. Each has their own dedicated target market. Few of them only work in rural sector while others in both rural as well as urban. Many even are only catering in cities. Some are of Indian origin and some are foreign players. All these details and many more is discussed over here. The banks and its relation with the customers, their mode of operation, the names of banks under different groups and other such useful informations are talked about. One more section has been taken note of is the upcoming foreign banks in India. The RBI has shown certain interest to involve more of foreign banks than the existing one recently. This step has paved a way for few more foreign banks to start business in India.

PUBLIC SECTOR BANKS

Among the Public Sector Banks in India, United Bank of India is one of the 14 major banks, which were nationalized on July 19, 1969. Its predecessor, in the Public Sector Banks, the United Bank of India Ltd., was formed in 1950 with the amalgamation of four banks viz. Camilla Banking Corporation Ltd. (1914), Bengal Central Bank Ltd. (1918), Camilla Union Bank Ltd. (1922) and Hooghly Bank Ltd.(1932).

Oriental Bank of Commerce (OBC), Government of India Undertaking offers Domestic, NRI and Commercial banking services. OBC is implementing a GRAMEEN PROJECT in Dehradun District (UP) and Hanumangarh District (Rajasthan) disbursing small loans. This Public Sector Bank India has implemented 14 point action plan for strengthening of credit delivery to women and has designated 5 branches as specialized branches for women entrepreneurs.

The following are the list of Public Sector Banks in India Allahabad Bank Andhra Bank Bank of Baroda Bank of India Bank of Maharastra Canara Bank Central Bank of India 9

Corporation Bank Dena Bank Indian Bank Indian Overseas Bank Oriental Bank of Commerce Punjab & Sind Bank Punjab National Bank Syndicate Bank UCO Bank Union Bank of India United Bank of India Vijaya Bank

List of State Bank of India and its subsidiary, a Public Sector Banks State Bank of India
o o o o o o

State Bank of Bikaner & Jaipur State Bank of Hyderabad State Bank of Indore State Bank of Mysore State Bank of Saurastra State Bank of Travancore

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PRIVATE SECTOR BANKS: Private banking in India was practiced since the beginning of banking system in India. The first private bank in India to be set up in Private Sector Banks in India was IndusInd Bank. It is one of the fastest growing Bank Private Sector Banks in India. IDBI ranks the tenth largest development bank in the world as Private Banks in India and has promoted world class institutions in India. The first Private Bank in India to receive an in principle approval from the Reserve Bank of India was Housing Development Finance Corporation Limited, to set up a bank in the private sector banks in India as part of the RBI's liberalization of the Indian Banking Industry. It was incorporated in August 1994 as HDFC Bank Limited with registered office in Mumbai and commenced operations as Scheduled Commercial Bank in January 1995. ING Vysya, yet another Private Bank of India was incorporated in the year 1930. Bangalore has a pride of place for having the first branch inception in the year 1934. With successive years of patronage and constantly setting new standards in banking, ING Vysya Bank has many credits to its account.

List of Private Banks in India

Bank of Punjab Bank of Rajasthan Catholic Syrian Bank Centurion Bank City Union Bank Dhanalakshmi Bank Development Credit Bank

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Federal Bank HDFC Bank ICICI Bank IDBI Bank IndusInd Bank ING Vysya Bank Jammu & Kashmir Bank Karnataka Bank Karur Vysya Bank Laxmi Vilas Bank South Indian Bank United Western Bank

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Competitor

The main competitor of is ICICI bank is SBI because this bank is totally taken by government after this bank HDFC bank is the main competitor of ICICI bank .There are different types of segment operation semment, investment and services, demat and NRI services.The competitor from the operation segment are State Bank of India(SBI), Axis, Housing Development and Financial corporation(HDFC) etc.From the investment And service sector HDFC standard life insurance corporation, Bharati Axa life insurance ,Reliance Life Insurance Corporation, Max new work life insurance SBI Life insurance,Life Insurance Corporation of India.In demat section India bull,Anangram,SBI,HDFC,India Infoline are the main competitor of ICICI bank.In the NRI service section the Western Union bank is the main competitor of ICICI bank.There are some other company who also compete with the ICICI bank After the SBI the HDFC bank is the main competitor of ICICI bank. HDFC Bank Ltd. is a commercial bank of India, incorporated in August 1994, after the Reserve Bank of India allowed establishing private sector banks. The Bank was promoted by the Housing Development Finance Corporation, a premier housing finance company (set up in 1977) of India. HDFC Bank has 1,500 branches and over 2,890 ATMs, in 530 cities in India, and all branches of the bank are linked on an online real-time basis. As of September 30, 2008 the bank had total assets of INR 1006.82 billion. State Bank of India is the largest bank in India. It is also, measured by the number of branch offices and employees, the second largest bank in the world.[citation needed] The bank traces its ancestry back through the Imperial Bank of India to the founding in 1806 of the Bank of Calcutta, making it the oldest commercial bank in the Indian Subcontinent. The Government of India nationalised the Imperial Bank of India in 1955, with the Reserve Bank of India taking a 60% stake, and renamed it the State Bank of India. In 2008, the Government took over the stake held by the Reserve Bank of India.SBI provides a range of banking products through its 13

vast network in India and overseas, including products aimed at NRIs. With an asset base of $126 billion and its reach, it is a regional banking behemoth. SBI has laid emphasis on reducing the huge manpower through Golden handshake schemes and computerizing its operations.The State Bank Group, with over 16000 branches , has the largest branch network in India. It has a market share among Indian commercial banks of about 20% in deposits and advances, and SBI accounts for almost one-fifth of the nations loans.There are some other banks which gives challenging some how in the banking and service sectorthey are: Allahabad Bank Andhra Bank Bank of Baroda Bank of India Bank of Maharashtra Canara Bank Central Bank of India Corporation Bank Dena Bank IDBI Bank Indian Bank Indian Overseas Bank Oriental Bank of Commerce Punjab & Sind Bank Punjab National Bank Syndicate Bank UCO Bank Union Bank of India United Bank of India Vijaya Bank

BUSINESS OBJECTIVES: Vision

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To be the leading provider of financial services in India and a major global bank. Mission We will leverage our people, technology, speed and financial capital to: be the banker of first choice for our customers by delivering high quality, world-class service. expand the frontiers of our business globally. play a proactive role in the full realisation of Indias potential. maintain a healthy financial profile and diversify our earnings across businesses and geographies. maintain high standards of governance and ethics. contribute positively to the various countries and markets in which we operate. create value for our stakeholders. Product and Services Service and banking of ICICI bank categorized in to personal banking, business banking and NRI banking services. Personal banking- Deposit in form of saving, recurring, term deposit, senior citizen deposit and children depository account are there for individual customer can also avail of their housing, automobile, farm equipment, business or personal loan scheme. Personal client can also invest in mutual funds and participate in stock trading through ICICI bank. Business banking Business banking services of ICICI Bank are exhaustive. Project financing, deal assessment, and land evaluation are investment banking services offered to corporate clients. Global trade and cash management transaction services facilitate remittances and receipts across important cities. Capital market and custodial services enable business houses to participate in equity trading and transfer across major stock markets of world.

CUSTOMER
ICICI bank targets all segment of customer with various types of products and services. I interacted with a a lot of customers and collect their feedback on the given services of company, and feedback are positive response from all point of view. Customers are beneficiary from both sides monetary as well as non monetary. The bank targets to add nearly 500,000 customers under the new scheme in the next one year and plans to offer auto loans through the new online channel in the future, ICICI Bank's Executive Director, V Vaidyanathan, said here. "As of now, nearly 24 per cent of our customer transactions are happening through internet. We are primarily targeting our urban customers, who constitute nearly 70 per cent of our total customer-base," Vaidyanathan said. Customers, opting for the service can also benefit from the quantum optima facility, wherein if the balance exceeds Rs 5,000, the money will automatically be transferred to a fixed deposit scheme, he said. The facility, which also enable customers to transact between an ICICI Bank account and accounts in other banks, is being offered free of cost, he said ICICI bank, presently, has above 2 crore customers. The lender opened nearly 470 branches in the last fiscal. The lender has also plans to launch 'SMS n Cash' scheme later this week under which ICICI account holders can transfer funds to those who do not have a bank account. ICICI bank is strongly committed to protecting the privacy of its customers and has taken all necessary and reasonable measures to protect the confidentiality of the customer information and its transmission through the world wide web and it shall not be held liable for disclosure of the confidential information 15

when in accordance with this privacy commitment or in terms of the agreements, if any, with the customers. ICICI bank Endeavours to safeguard and ensure the security of the information provided by the customer. ICICI bank uses 128-bit encryption, for the transmission of the information, which is currently the permitted level of encryption in India. When the information provided by the customers is not transmitted through this encryption, the customer's system (if configured accordingly) will display an appropriate message ensuring the best level of secrecy for the customer's information. The customer would be required to cooperate with ICICI bank in order to ensure the security of the information, and it is recommended that the customers necessarily choose their passwords carefully such that no unauthorized access is made by a third party. To make the password complex and difficult for others to guess, the customers should use combination of alphabets, numbers and special characters (like! @, #, $ etc.). The customers should undertake not to disclose their password to anyone or keep any written or other record of the password such that a third party could access it. ICICI bank undertakes not to disclose the information provided by the customers to any person, unless such action is necessary to: Conform to legal requirements or comply with legal process; Protect and defend ICICI bank's or its affiliates rights, interests or property; Enforce the terms and conditions of the products or services; or Act to protect the interests of ICICI bank, its affiliates, or its members, constituents or of other persons.

ERP Systems Integration

Pinnacle Software Solutions has the expertise and experience to assist you with your enterprise systems integration. From developing your strategy, through implementation and support, we bring the right combination of resources, management skillsets, and technical know-how. We will help you successfully integrate your Enterprise Resource Planning (ERP) systems into your overall business and technology infrastructure. Whether you are planning an upgrade of an existing ERP system, or a complete replacement of a legacy application and platform, we can help you improve your financial, human resources,

16

electronic mail, and other business systems. We work with the leading ERP systems, including the latest versions of the Oracle and PeopleSoft applications:
General Ledger Accounts Payable Accounts Receivable Purchasing Asset Management Project Costing Human Resources Payroll Benefits Compensation

Our technology management solutions will help you migrate hardware platforms, improve network and database performance, develop or refresh policies and procedures, and develop sound disaster recovery and backup solutions. Please contact us to learn how Pinnacle Software Solutions can help you develop solutions that fit your enterprise. ICICI Prudential Life Insurance Company Limited ICICI Prudential life Insurance Company Limited was incorporated on 20th July 2000.The authorized capital of the company is Rs.2300 million and the paid up capital is Rs.1500 million. The company is joint venture of ICICI (74%) and UK based company Prudential Plc (26%). The company was granted certificate of registration for carrying business, by Insurance Regulatory and Development Authority on 24th November 2000. It commenced commercial operation from 19th December 2000 and becoming a leading private sector life insurance company. The company recognizes that the driving force for gaining sustainable competitive advantage in this business is superior customer experience and investment behind the brand. The company aims to achieve this by striving to provide world class service level trough constant innovation in product, distribution channels and technology based delivery. Vision and Mission Their vision is to make ICICI Prudential Life Insurance Company the dominant new insurer in the life insurance industry. This they hope to achieve through their commitment to excellence, focus on service, speed and innovation, and leveraging our technological expertise. The success of the organisation will be founded on its strong focus on values and clarity of purpose. These include:

Understanding the needs of customers and offering them superior products and service Building long lasting relationships with their partners Providing an enabling environment to foster growth and learning for their employees

And above all building transparency in all our dealings.They believe that they can play a significant role in redefining and reshaping the sector. Given the quality of their parentage and the commitment of their team, they feel that tere will be no limits to their growth. Board of Directors The ICICI Prudential Life Insurance Company Limited Board comprises reputed people from the finance industry both from India and abroad. Shri K.V. Kamath, Chairman 17

Mr. Mark Tucker Smt. Lalita D. Gupte Mr. Danny Bardin Mrs. Kalpana Morparia Shri M.P. Modi Mr. John Caouette Shri S.P.Subhedar, (Alternate Director to Mr. Danny Bardin) Mr. Derek Stott, (Alternate Director to Mr. Mark Tucker) Smt. Shikha Sharma, Managing Director Management Team Ms. Shikha Sharma, Managing Director Mr. Kevin Wright, Executive Vice President - Sales & Distribution Ms. Madhavi Soman, Chief - Strategic Initiatives Mr. V. Rajagopalan, Appointed Actuary Mr. Sandeep Batra, Chief Financial Officer & Company Secretary Mr. Saugata Gupta, Chief - Marketing & Service Mr. Shubhro J. Mitra, Chief - Human Resources

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

Retail Segment of ICICI Lombard General Insurance :

ICICI Lombard's Retail Segment consists of personal insurance products - Health, Home, Motor and Travel insurances.

Health Insurance
ICICI Lombard is known to be a pioneer in introducing innovative concepts in the Indian health Insurance sector. Be it the floater concept, the critical illness cover or the tax gain policy, all these were first introduced by ICICI Lombard. It was also one of the first general insurance companies in India to have a robust online system in place for buying and renewing policies. The various plans offered by ICICI Lombard include Family Floater Plan - where one policy covers the entire family, Health Advantage Plus - where they cover OPD and dental expenses, also help save maximum tax under section 80D and Critical Illness plan - a special policy 18

covering a list of critical illnesses. They also have a basic Personal Accident Plan which covers against accidents. ICICI Lombard health plans also provide coverage against terrorism.

Home Insurance
Home Insurance is actually one of the most neglected areas in the general insurance category. Simply, because people in general, especially in India, do not give much importance to it. However, in the recent years, due to the increase in awareness, and the great extent of damage caused to property due to natural calamities and terrorism, it has been gaining importance. The Home Insurance Policyoffered by ICICI Lombard covers both the structure and the contents of the house. You can opt for either of the covers or both. Unlike other policies, it also covers damage due to terrorist activities, loss of cash, public liability, temporary resettlement and others.

Motor Insurance
As Motor Insurance is mandatory in India and is governed by the Motor Tariff Act, the policies offered by various companies are more or less the same. There is not much room for innovation in this category. ICICI Lombard too offers Car Insurance and Two Wheeler Insurance. They are known to offer one of the best rates in the market. As the entire buying process is online and is instant, without any submission of documents or other formalities, people generally opt it for convenience.

Travel Insurance
Travel insurance is one of the most prominent sector of general insurance, especially overseas travel insurance and student medical insurance. ICICI Lombard offers various options in both the categories. The Overseas Travel Plans and Student Medical Plans offered cover medical and non-medical expenses, including compensation for flights hijacked and pre existing diseases in case of emergency. They charge on a per day basis if the travel is more than 7 days. ICICI Lombard has tied up with United Health Group to facilitate access to all its clinics while in U.S.

NRI Services
ICICI Lombard has developed insurance policies for Non-resident Indians that can be bought, renewed and tracked online. Parents' Health Insurance covers hospitalization and medical expenses incurred by parents of the policyholder in India. For parents' travelling outside India, ICICI Lombard offers a Parents' Overseas Travel Insurance policy.

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

Channels
Channel is the term used for the various approaches a company uses to tap its customers. ICICI Lombard uses a multi channel approach to ensure the sales, service and other allied activities are carried out in the most effective manner.

Retail
The Retail channel consists of sales executves, sales officers, brokers and agents. They are the one who are in direct contact with the customers and bring the innovative insurance solutions to their doorsteps.

Online
ICICI Lombard has developed a web-based system to meet all the pre and post-policy transaction. One can get quotes, buy, renew and track their policies onlin e through the website [www.icicilombard.com]. With the do-it-yourself architecture, the online channel is fast, convenient, easy to understand and operate.

Technology
ICICI use many type of advance technological software like Pinnacle 7.0 and Pinnacle7.016.Among from this software ICICI bank uses the e-banking, core banking, mobile banking electronic display sy ICICI Bank was using Teradata for its data warehouse. However, due to its proprietary hardware, the cost of procurement, upgrades and administration was soaring. The closed box architecture of Teradata imposed restrictions on scalability. Secondly, querying and loading could not happen simultaneously. Queries could only be run during business hours because the loading of data had to take place during off-business hours. This meant that the refresh rate of EDW was delayed, so queries may not reflect the most current data. ICICI Bank was also dependent on Teradata for support and other activities: The bank was completely tied down to that solution. These issues compelled ICICI Bank to look for more efficient and flexible solutions. The solution would have to address not only current issues, but accommodate future growth 20

expectations and business requirements. ICICI Bank evaluated numerous data warehousing solutions in the pursuit of solving its issues, and developed a shortlist of alternatives for its migration proof-of-concept: Sybase, SAS and Netezza. The primary criteria for evaluation was the price-to-performance ratio where Sybase IQ emerged the clear winner. During this rigorous testing, Sybase IQ delivered faster results on independent hardware and operating systems with minimum infrastructure. Commending the improvements achieved, Amit Sethi, Joint General Manager, ICICI bank says, "What impressed us wasthat even with overall lower costs, we could achieve significantly better query performanceafter implementing the Sybase enterprise warehouse solution." ICICI Infotech today launched an enterprise resource planning (ERP) solution for the small and medium enterprises. The ERP package - Orion Advantage - comes bundled with an HP dual processor Xeon server, Oracle 9i database, Windows 2003 server and costs about Rs 9.90 lakh and has a 15-user license. An ERP package helps a manufacturer or any other business implementing it to manage all the important parts in the company such as product planning, parts purchasing, maintaining inventory and interacting with suppliers and customers. ICICI Infotech officials told a press conference here today that Orion Advantage offered a set of business practice solutions for industry segments such as engineering, auto ancillary, pharmaceuticals, chemicals and IT distribution. Besides the cost advantage, the ERP package also came pre-configured. ICICI Infotech had mapped the processes specific to each industry segment into the package. Mr. Manoj Kunkalienkar, Executive Director and President, ICICI Infotech, said that small and medium enterprises (SMEs) offered a good market and ICICI Infotech hoped to become a leading solution provider to this segment. Mr. R.K. Kanthi, Deputy General Manager, ICICI Infotech, said there was no ERP package for the SMEs that bundled the server, database and operating system right now. That was the advantage ICICI Infotech offered to SMEs as Orion Advantage came bundled and pre-configured. Besides the high cost of generic ERP packages, their implementation time as far as SMEs were concerned was also long. Orion Advantage could be installed in 45 days.

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ICICI Infotech had signed up six customers so far for the package and hoped to garner a 15 per cent market share of the SME segment, whose number in the country was estimated at 2.30 lakh. Mr. K.S. Natarajan, Managing Director, Trident Pneumatics Pvt Ltd of Coimbatore, one of the companies that had installed Orion Advantage, said that the company had tried three other ERP packages, all of which had failed, before settling on Orion Advantage. Mr Kunkalienkar said that ICICI Infotech planned to move the two development centers in Chennai into a single location and double the staff strength from 300 now in the next two years. The Chennai centers were involved in research and development of Orion ERP solutions and Premia, an insurance package.

ERP Systems Integration

Pinnacle Software Solutions has the expertise and experience to assist you with your enterprise systems integration. From developing your strategy, through implementation and support, we bring the right combination of resources, management skillsets, and technical know-how. We will help you successfully integrate your Enterprise Resource Planning (ERP) systems into your overall business and technology infrastructure. Whether you are planning an upgrade of an existing ERP system, or a complete replacement of a legacy application and platform, we can help you improve your financial, human resources, electronic mail, and other business systems. We work with the leading ERP systems, including the latest versions of the Oracle and PeopleSoft applications:
General Ledger Accounts Payable Accounts Receivable Purchasing Project Costing Human Resources Payroll Benefits

22

 Asset Management

Compensation

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

ICICI GROUP

ICICI VENTURE

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ICICI Venture is the largest and one of the most successful private equity and Venture capital management companies in India with aggregate funds under Management in excess of USD 2 billion. ICICI Venture is a subsidiary of ICICI Bank, Indias second-largest bank with total assets of about US$ 56.3 bn (March 31, 2006) and market capitalization of about USD 10.8 bn (June 2006). Over the years, ICICI Venture has built an enviable portfolio of companies in the sectors of information technology, pharmaceuticals, biotechnology, media and retail thereby delivering value consistently to its investors. ICICI Venture has the distinction of managing a large number of exits in the Country. With over 100 liquidity events, the organization has reaped rich Experience and is well positioned to handle IPOs, strategic sale and/or mergers. ICICI Venture has a wide network of third party investors, which include Domestic investors such as public sector banks, financial institutions and Insurance companies. A significant portion of the funds corpus is also from International development financial institutions and international funds. The company has over 40 qualified professionals with experience across sectors and functions. The capabilities of the team, structure of the organization, Emphasis on value creation and performance evaluation matrices enable ICICI Venture to extract superior returns from its investments.

Technology Used in ICICI Bank

In the era of globalization each and every sector faced the stiff competition from their rivals. And world also converted into the flat from the globe. After the policy of liberalization and RBI initiatives to take the step for the private sector banks, more and more changes are taking the part into it. And there are create competition between the private sector banks and public sector bank.

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Private sector banks are today used the latest technology for the different transaction of day to day banking life. As we know that Information Technology plays the vital role in the each and every industries and gives the optimum return from the limited resources. Banks are service industries and today IT gives the innovative Technology application to Banking industries. ICICI BANK is the leader in the industries and today IT and ICICI BANK together combined they reached the sky. New technology changed the mind of the customers and changed the queue concept from the history banking transaction. Today there are different channels are available for the banking transactions.

We can see that the how technology gives the best results in the below diagram. There are drastically changes seen in the use of Internet banking, in a year 2001 (2%) and in the year 2008 (25%).

These type of technology gives the freedom to retail customers. Centralized Processing Units Electronic Straight Through Processing Data Warehousing , CRM Innovative Technology Application Derived Economies of Scale Reduced Transaction Cost Improve cost efficiency, Cross sell Provide new or superior products

The countrys middle class accounts for over 320 million people. In correlation with the growth of the economy, rising income levels, increased standard of living, and affordability of banking products are promising factors for continued expansion.

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PRODUCT

ICICI Bank offers wide variety of Deposit 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 your doorstep. Select any of our deposit products and provide your details online and our representative will contact you for Account Opening.

SAVING ACCOUNTS ICICI Bank offers you a power packed Savings Account with a host of convenient features and banking channels to transact through. So now you can bank at your convenience, without the stress of waiting in queuess.

HOME LOAN 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. It's really easy!

PERSONAL LOANS If you're looking for a personal loan that's easy to get, your search ends here. ICICI Bank Personal Loans are easy to get and absolutely hassle free. With

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

CAR LOAN The NO 1 financier for car loans in the country. Network of more than 1500 channel partners in over 780 locations. Tie-ups with all leading automobile manufacturers to ensure the best deals. Flexible schemes & quick processing. Hassle-free application process on the click of a mouse. 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 Avail attractive schemes at competitive interest rates from the No 1 Financier for Two Wheeler Loans in the country. 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. Ride home on your Dream Two Wheeler with our hassle free finance. Reasonable investment tenure. Nomination facility available.

Mutual Funds 27

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. 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, and CFA etc.

IPO:

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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.

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. 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. 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.

S.W.O.T. analysis of ICICI BANK

Introduction to SWOT Analysis.

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The overall evaluation of the companys Strength, Weakness, Opportunities and Threats is called as SWOT Analysis. The external environment analysis of any business will give you the opportunities and threats facing the business. The external environment consists of two parts: 1) Macro Environment: Demographic, Economic, Technology, Political-legal, Socio-cultural 2) Micro Environment: Customers, Competition, Distributors, Suppliers. The Internal Environment Analysis will give you the strength and weakness of the business.

STRENGTH Right strategy for the right products. Superior customer service vs. competitors. Great Brand Image Products have required accreditations. High degree of customer satisfaction. Good place to work Lower response time with efficient and effective service. Dedicated workforce aiming at making a long-term career in the field.

WEAKNESSES Some gaps in range for certain sectors. Customer service staff need training. Processes and systems, etc Management cover insufficient. Sectoral growth is constrained by low unemployment levels and competition for staff

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Opportunities

Threats

Profit margins will be good. Could extend to overseas broadly. New specialist applications. Could seek better customer deals. Fast-track career development opportunities on an industry-wide basis.

Legislation could impact. Great risk involved Very high competition prevailing in the industry.

Vulnerable to reactive attack by major competitors

Lack of infrastructure in rural areas could constrain investment.

An applied research centre to create opportunities for developing techniques to provide added-value services.

High volume/low cost market is intensely competitive.

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RESEARCH METHODOLOGY

Data Collection Techniques: This project consists of two parts. The first part is a study of the banking industry, ICICI Bank using secondary data sources. This secondary information has been sourced from the internet and from business related magazines and newspapers. The second part of the study has been done using an exploratory research process and a structured questionnaire was developed for this purpose. For the collection of primary data this was the only method used. The reason I used this method is because a need was felt for the free influx of information about the products. Also this method allowed the use of skills gained in class.

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Sample Design: The population considered for the purpose of the survey was people residing in Delhi and the National Capital Region (NCR). Sampling Technique Used: Since the information required was not of a very technical nature and also looking at the scope of the project and the extent of the target segment, the sampling technique employed was Convenience Sampling. I administered the questionnaires.

Sample Size: I have restricted the sample size to 50 respondents. This was done keeping in mind the time constraints and the fact that I felt that this number would be enough to serve the information needs required to show the trends.

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COMPANYS EFFORT TO ENSURE SATISFACTION OF CUSTOMERS: Objectives of ICICI Promote good and fair banking practices by setting minimum standards in dealing with you Increase transparency so that you can have a better understanding of what you can reasonably expect of the services; Encourage market forces, through competition, to achieve higher operating standards; Promote a fair and cordial relationship between you and your bank; Foster confidence in the banking system

To Help You To Understand How Our Financial Products And Services Work By:

Giving you information about them in any one or more of the following languages: Hindi, English or the appropriate local language.

Ensuring that our advertising and promotional literature is clear and not misleading Ensuring that you are given clear information about our products and services, the terms and conditions and the interest rates/service charges, which apply to them.

Giving you information on what are the benefits to you, how you can avail of the benefits, what are their financial implications and whom you can contact for addressing you queries .

To Help You Use Your Account Or Service By:

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Providing you regular appropriate updates. Keeping you informed about changes in the interest rates, charges or terms and conditions.

Information You can get information on interest rates, common fees and charges through any one of the following:

Looking at the notices in our branches ; Phoning our branches or help-lines; Looking on our website; Asking our designated staff/help desk ;or Referring to the service guide/Tariff Schedule.

Before You Become a Customer we will:

give you clear information explaining the key features of the services and products you tell us you are interested in;

give you information on any type of products and services which we offer and that may suit your needs;

tell you if we offer products and services in more than one way [for example, through ATMs, on the Internet, over the phone, in branches and so on] and tell you how to find out more about them;

tell you what information we need from you to prove your identity and address, for us to comply with legal, regulatory and internal policy requirements. 35

Advertising, Marketing and Sales We will make sure that all advertising and promotional material is clear, and not misleading. In any advertising in any media and promotional literature that draws attention to banking service or product and includes a reference to an interest rate, we will also indicate whether other fees and charges will apply and that full details of the relevant terms and conditions are available on request. If we avail of the services of third parties for providing support services, we will require that such third parties handle your personal information (if any available to such third parties) with the same degree of confidentiality and security as we would. We may, from time to time, communicate to you various features of our products availed by you. Information about our other products or promotional offers in respect of our products/services, will be conveyed to you only if you have given your consent to receive such information/ service either by mail or by registering for the same on our website or on our phone banking/customer service number. We have prescribed a code of conduct for our Direct Selling Agencies (DSAs) whose services we may avail to market our products/ services which amongst other matters requires them to identify themselves when they approach you for selling our products personally or through phone. In the event of receipt of any complaint from you that our representative/courier or DSA has engaged in any improper conduct or acted in violation of this Code, we shall take appropriate steps to investigate and to handle the complaint and to make good the loss.

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Privacy and Confidentiality We will treat all your personal information as private and confidential [even when you are no longer a customer], and shall be guided by the following principles and policies.

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Data Analysis

1. WHICH OF THE FOLLOWING ATTR IBUTES COMPELLED YOU To MOST OPEN SAVING ACCOUNT IN ANY BANK?

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2:-Which TYPE OF SERVICE PREFERS THE MOST by you?

3:-Which of following banks do you have account?

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4:-WHAT TYPE OF ACCOUNT DO YOU HAVE IN BANK?

6:-How would you know about these services?

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9:-Is ICICI Bank Provide better facilities than SBI & HDFC Bank?

10:-Do you know what type of value added services provide by ICICI BANKS?

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11:-How would you rate product offered ICICI Bank than other? Rating Very Good 5 Good 4 Moderate 3 Less 2 Poor 1

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COMPETITIVE SWOT ANALYSIS WITH ICICI BANK

STRENGTHS O P P O R T U N I T I E S

WEAKNESSES

S O Strategies Strength: Large Capital base. Opportunity: Market Expansion.

W O Strategies Weakness: Workforce Responsiveness. Opportunity: Outsourcing of Non Core Business. Strategy: Outsource Customer Care & other E-Helps. W T Strategies Weakness: Not Equal to International Standards. Threat: Entry of many Foreign Banks.

Strategy: Deep Penetration into Rural Market.

S T Strategies T H R E A T S Strength: Low operating costs

Threat: Increased Competition from others Pvt. Banks. Strategy: Steps to Ensure

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Loyalty by old Customers.

Strategy: Consider additional benefits

SUGGESTIONS A. Best play in a buoyant environment Favorable macro, buoyant Market related revenues and a benign environment for asset quality. 1 ICICI as a player focused on maintaining and /or improving Market share in positive operating Environment. 2. ICICI is viewed as it is benefited from the procyclicality effect of The economic cycle as its borrowers in the legacy project financing Activity witnessed their debt servicing ability increasing considerably. It is believed that the profitability of this segment has improved as a Result of lower loan loss provisions and lower taxable rates of Income from this source. Expectations is on the procyclical benefit ,To continue and hence profitability of legacy lending to be sustained At levels seen earlier. key business segments, particularly retail lending- Will, in our view, benefit immensely form a

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3. Market related revenues is believed to contribute 14% - 15% to ICICIB's operating revenues and have boosted its preprovision RoAA. Buoyant environment to sustain the contribution from market -related revenues is expected and hence the operating profitability. 4. Pricing power in consumer financing segment profitability Against potential shocks. 5. ICICIB enjoys a dominant market position across customer Categories in retail lending.The strong market position and robust Demand for consumer financing vests significant pricing power With ICICIB is believed either by allowing a hike in lending rats, Negotiating higher subvention form manufacturers of cutting Distribution costs. 6. Strong pricing power and a balance sheet that is significantly Biased towards retail lending buffers ICICB's profitability from Potential shocks in the bank's funding cost. 7. ICICB has an adverse mismatch profile between assets and Liabilities. High volatility in interest rates could adversely effect Profitability in the short term; however, as the back book ss

conclusion
Thus, ICICI has been able to use technology to provide value-added service to its customers during the last few years. For ICICI, technology is an integral part of their business. However, their overall progress could have been smoother but for certain internal and extraneous factors and also a pressure on spreads due to a competitive market (Annual report, 2000 01). Ebanking has become a necessary survival weapon and is fundamentally changing the banking industry worldwide. To day, the click of the mouse offers customers banking services at a much lower cost and also empowers them with unprecedented freedom in choosing vendors for their financial service needs. No country today has a choice- whether to implement E-banking or not given the global and competitive nature of the economy. ICICI have toupgrade and constantly think of new innovative customized packages and services to remain competitive. The invasion of banking by technology has created an information age and commoditization of banking services. ICICI have come to realize that survival in the new e-economy depends on delivering some or all of their banking services on the Internet while continuing to support their

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traditional infrastructure. The rise of E-banking is redefining business relationships and the most successful banks will be those that can truly strengthen their relationship with their customers. Without any doubt, the international scope of E-banking provides new growth perspectives and Internet business is a catalyst for new technologies and new business processes.

Bibliography www.rbi.org.in www.moneycontrol.com www.nseindia.com www.icicibank.com www.google.com Economic times Business world

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Confidential Questionnaire
Dear SIR/MADAM, I am conducting survey on ICICI. I shall be very thankful to give your few minutes to me for answering my few questions below. Name: _____________________________________ Add: ________________________________________ Contact no: ____________________________________ Gender Male Female E-mail Id : _______________________________________________________ Age Group: 1825 2535 35 45 4555 55+ Occupation: Journalist Student Professional Retired Person Technical expert Other, please specify: Income: 1 laces +10 laces 13 laces 35 laces 57 laces 710 laces

1:-WHICH OF THE FOLLOWING ATTRIBUTES COMPELLED YOU MOST TO OPEN (a) ATM cum DEBIT Cards (b) Cheque Book (c) Internet Banking/ Phone Banking (D) Working Hours (e) Value Added Services

2:-Which TYPE OF SERVICE PREFERS THE MOST by you? (a) ATM SERVICE (b) INTERNET BANKING (c) MOBILE BANKING (d) CORE BANKING (e) Retail Banking

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3:-Which of following banks do you have account? (a) ICICI Bank (b) SBI Bank (c) HDFC BANK (D) Axis Bank (e) Other Pls specify __________________

4:-WHAT TYPE OF ACCOUNT DO YOU HAVE IN BANK? (a) Saving (B) Current (c) Fixed (d) NRI (e) Others Pls specify ________________________________________ 5:-How many services offered by your banks? (a) D-Mat A/C (b) Mutual Funds (c) e-Instructions (d) LI & GI (e) Digitally Signed Statement

6:-How would you know about these services? (a) Advertisements (b) Friends and Relatives

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(c) Direct Selling Agents (d) Others Pls specify _______________

7:-What the people think about the Banks? (a) Necessity for protection security (b) Imposition of a burden of expenses (c) A compulsory tool for SAVING (d) Others Pls specify ________________

8:-What a respondent see in purchase of new plan from Banks? (a) Standing and goodwill of the company
(b) Product range of the company (c) Advertisement being released by the company (d) Services being given by the company

9:-Is ICICI Bank Provide better facilities than SBI & HDFC Bank? (a) Yes (b) No (c)Can`t Say

10:-Do you know what type of value added services provide by ICICI BANKS? (a)-Young star (b)-Senior citizen (c)-Pre paid card (d)-Recurring deposits (e)-other 11:-How would you rate product offered ICICI Bank than other? Low 1 2 3 4 5 High

12:-How would you rate product service / product vs. cost by ICICI Bank? Low 1- 2 -3 -4 -5 High

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13:-How would you divide 100 points on the basis of service provide by ICICI Bank? (a)-Less formality (b)-Flexibility (c)-Less documentation (d)-others

14:-How would you rate services offered by ICICI Bank? (a) Extremely Satisfied (b) Satisfied (c) Moderate (d) Dissatisfied (e) Extremely Dissatisfied

15:-Would you like any recommendation to ICICI Bank?

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