Marketing Strategy Of Credit Card-ICICI Bank Chapter-1 Credit Card 1.1 Introduction 1.2Working 1.

3 Research Methodology

1.1 INTRODUCTION A credit card is a payment card issued to users as a system of payment. It allows the cardholder to pay for goods and services based on the holder's promise to pay for them. The issuer of the card creates a revolving account and grants a line of credit to the consumer (or the user) from which the user can borrow money for payment to a merchant or as a cash advance to the user. A credit card is different from a charge card: a charge card requires the balance to be paid in full each month.In contrast, credit cards allow the consumers a continuing balance of debt, subject to interest being charged. A credit card also differs from a cash card, which can be used like currency by the owner of the card. A credit card differs from a charge card also in that a credit card typically involves a third-party entity that pays the seller and is reimbursed by the buyer, whereas a charge card simply defers payment by the buyer until a later date. 1.2 How Do Credit Cards Works? When you apply for a credit card, the bank you apply to carefully screens your application. You cant blame them given that there is always a crook around the corner. A credit limit is worked out for you, based on your financial capability and other parameters like income levels, educational qualifications, age etc. The bank that issues you the card is called the 'issuing bank'. The Business From the bank's point of view, credit cards are good business for two reasons. Banks make money through fees from merchant establishment. The higher than normal interest rate paid by cardholders for the balance in their card. So what are these merchant establishments? These form the heart of the business. Merchant establishments can be hotels, shops, travel agencies or any place where money transactions are made. The banks that enroll merchant establishments are called 'acquiring banks'. The relationship between the bank and the merchant establishments is run via international networks such as Visa and Master card. Your credit card is valid in any merchant establishment that accepts your
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Marketing Strategy Of Credit Card-ICICI Bank network (ie Master Card or Visa), irrespective of the issuing bank. Most Indian card issuing banks are part of either Master Card network or Visa network, or both. There are others credit card networks like American Express and Diners Club too. The merchant establishment finds the credit card a safer and efficient payment mode, and brings more business. The merchant establishment pays a fee to the bank that enrolled it for the service. The Transaction When you use a card at an establishment to purchase a product or service, your card is swiped on a swipe-machine. The swipe machine is connected to a central computer belonging to the network, which in turn is connected to all issuing banks. The system verifies with your issuing bank whether you have sufficient credit to cover the purchase in a few seconds, and approves or rejects the transaction. As soon as approval comes through, you are asked to sign the charge slip. The merchant then verifies your signature with the one at the back of the card. The charge slip is then forwarded to the acquiring bank, which in turn settles the transaction with the merchant. The issuing bank also proceeds to bill you for payment as per the cardholder agreement. The acquiring bank will settle the transaction with your issuing bank through the network. Sounds pretty straightforward? Then you're wondering why credit cards are such accursed instruments? That happens when you delay payments and get caught in an interest cycle. When you use a credit card you have the option to pay only a part of the total amount spent and carry forward the balance. But in such a case you will have to pay interest on all your purchases without any free credit period. You can save yourself only if you are prompt in paying the balance by the due date. Credit card users get a free period of credit before they reimburse the credit card issuing bank. This may vary from 15 days to 40 days depending on the issuing banks. So that concludes our session on How Credit Cards Work. If you're now looking for information on How Snow Leopards Mate then you're on the wrong site my friend! Disclaimer: While we have made efforts to ensure the accuracy of our content (consisting of articles and information), neither this website nor the author shall be held responsible for any losses/ incidents suffered by people accessing, using or is supplied with the content.

Marketing Strategy Of Credit Card-ICICI Bank ICICI Bank is India's largest private sector bank with total assets of Rs. 5,367.95 billion (US$ 99 billion) at March 31, 2013 and profit after tax Rs. 83.25 billion (US$ 1,533 million) for the year ended March 31, 2013. The Bank has a network of 3,384 branches and 11,063 ATMs in India, and has a presence in 19 countries, including India.

ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialised subsidiaries in the areas of investment banking, life and non-life insurance.

The Bank currently has subsidiaries in the United Kingdom, Russia and Canada, branches in United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International Finance Centre and representative offices in United Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia. Our UK subsidiary has established branches.

ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and the National Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE).

Marketing Strategy Of Credit Card-ICICI Bank 1.3 Research Methodology

Marketing Research
Marketing research is the function, which links the consumer, customer and public to the marketer through information. Information used to identified and define marketing opportunities and problems: generate, refine and evaluate marketing action, monitor marketing performance, and improve understanding of market as a process. Marketing strategies of ICICI Bank vary in their specific objectives. They may be used to correct new customer, to reward loyal customers ad to increase the repurchase rates of occasional users. In this study the for most data collection instrument used is the questioners method. The questioner has been designed with both open ended and close ended questions. Apart from this, the research instrument consists of primary and secondary data collected for the study.

Primary Data
Here first hand information is obtained by distributing printed questioners to the marketing executives of the company. Data was also obtained from the observation and interviews techniques adopted by the researchers. Moreover, information was disseminated by the departmental heads.

Secondary Data
Here the information is obtained from the brochure of Samsung group , books, websites, newsletter, generals, magazines, newspaper, etc.

Marketing Strategy Of Credit Card-ICICI Bank Chapter-2 Credit Cards Facility By ICICI Bank

2.1 Facility 2.2 Types Of Credit Card 2.3 Parties involved in credit cards 2.4 Features Of Credit Card

2.1 FACILITY In these terms and conditions, unless there is anything repugnant to the subject or context thereof, the expressions listed below, if applicable, shall have the following meanings: "EMI" or Equated Monthly Installment means the equated monthly installments of amounts payable by the Card Member to ICICI Bank in respect of the Facility and comprises of the principal amount of the Facility and interest thereon. "Facility" means the facility offered on the available Credit-Limit and/or Cash-Limit / temporarily enhanced Credit-Limit on installment provided / agreed to be provided by ICICI Bank on the Credit Card, at its sole discretion, to the Card Member to the extent of amounts not exceeding the available Cash-Limit and/or Credit-Limit or such enhanced amount exceeding the available Cash-Limit / Credit-Limit, as may be decided by ICICI Bank, from time to time. Instant Money Service means the mode of confirming / providing disbursement advice regarding the Facility within the available Cash-Limit and/or Credit-Limit by usage of the Card at the point of sale machines situated at select Merchant Establishment/s. 2.2 USAGE OF FACILITY The Card Member can request for an amount upto the available Cash-Limit and/or CreditLimit on the Card Account or for an amount over the available Cash-Limit / Credit-Limit in the form of a temporarily enhanced limit through an additional account linked to the existing Card Account. Such amounts shall be disbursed to the Card Member in the form of a demand draft or transfer to his/her ICICI Bank liability account, through ICICI Bank 24 Hour
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Marketing Strategy Of Credit Card-ICICI Bank Customer Care or such other mode as may be communicated by ICICI Bank, from time to time. The final approval of the amount of the Facility to be granted is subject to the Card Members performance on the Card and the available Cash-Limit and/or Credit-Limit at the time ICICI Bank receives the Card Member's request for the Facility. The Cash-Limit and/or the Credit-Limit on the Credit Card will be blocked by the amount for which the Facility is granted in cases where such amount forms part of the available Cash-Limit and/or CreditLimit. The Card-Member shall be required to pay a non-refundable processing fee on the Facility upto the percentage specified by ICICI Bank to the Card Member at the time of availing the Facility. The Card Member hereby agrees to avail the Facility on the precondition that he will not use the amount of the Facility, or any part thereof, towards capital market or for the purpose of repaying his ICICI Bank Card outstandings. In case of the InstaMoney Service, the Card Member may avail the Facility by swiping the Card at point of sale machines situated at select Merchant Establishment/s. By affixing signature on the InstaMoney disbursal advice chargeslip, the Card Member confirms the availment of the Facility. In case where the Card Member avails the Facility through InstaMoney Service, the same shall be disbursed to the Card Member only in the form of a demand draft dispatched to the mailing address of the Card Member last recorded with ICICI Bank. Repayment The Card Member shall repay the Facility and interest thereon in EMIs. The interest shall be at such rate which has been indicated by ICICI Bank to the Card Member at the time of making the offer for the Facility and as also as communicated to the Card Member. The interest calculation will start from the time the request regarding the Facility has been confirmed by the Card Member. The amount of the EMIs together with other details of the Facility (including rate of interest) shall be communicated to the Card-Member at his/her mailing address. The amount of EMI due for a particular month shall subsequently be reflected in the Statement for that particular month. In the case of the Facility offered as an enhanced amount exceeding / over the available Cash-Limit / Credit-Limit, the Statement shall be
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Marketing Strategy Of Credit Card-ICICI Bank communicated separately to the Card Member. In case of Facility granted upto the available Cash-Limit and/or Credit-Limit, the Card Member hereby authorizes ICICI Bank to debit the Card Account of the Card Member on a monthly basis for the amount of EMI due for that particular month, as has been intimated to the Card Member through the Statement. Principal and interest will be mentioned separately in the Statement. In case of Facility granted upto the available Cash-Limit and/or Credit-Limit on the Card Account, the Cash-Limit and/or CreditLimit shall be reinstated to the extent of the amount of EMI repaid by the Card Member. In case the Facility offered as an enhanced amount exceeding / over the available Cash-Limit / Credit-Limit, such limit shall be reduced to the existing Credit-Limit and/or Cash-Limit upon repayment of such enhanced amount by the Card Member. The Card Member shall be required to pay the entire amount of the EMI for a particular month on the due date, as indicated in the Statement and the same shall not be permitted to be carried forward/included in the next Statement. In the event the payment is not made by the due date as specified, it shall be construed as a default by the Card-Member and Card Member shall become liable to pay the amount together with late payment charges, as specified in the Primary Terms and Conditions. ForeClosure Of Facility If the Facility is foreclosed/ terminated before the tenure of the repayment of the Facility, the amount of the Facility outstanding at the time of foreclosure/termination together with all interest thereon and all other monies in respect of the Facility shall become repayable by the Card Member. The Card Member may foreclose the Facility at any time by contacting ICICI Bank's 24 Hour Customer Care to avail of the foreclosure. The Card Member shall pay such foreclosure charges as may be indicated by ICICI Bank in the communication sent to the Card Member at the time of granting the Facility. ICICI Bank shall, without prejudice to all rights and remedies, have the right to call upon the Card Member to forthwith repay the Facility, all interest thereon and all other monies in respect of the Facility upon occurrence of event of default in repayment of the amount of the Facility and the Card Member shall be liable to repay all such amounts upon such demand.

Marketing Strategy Of Credit Card-ICICI Bank

Cancellation Of Facility The Card Member may cancel the Facility within 15 days of receiving the draft / transfer to his/her ICICI Bank liability account by contacting ICICI Bank's 24 Hour Customer Care. In case of a draft, the Card Member may request for such cancellation at ICICI Bank's 24 Hour Customer Care or return the draft at the address mentioned below. In case of transfer to his/her ICICI Bank liability account, the cancellation request can be raised at ICICI Bank's 24 Hour Customer Care and such amount will be reversed from the account of the Card Member, where the transfer was effected. Such cancellation shall be subject to non encashment of the draft or amount being available in the account to effect reversal, as the case may be. Particular Affirmative Covenants 1. The Card Member has understood ICICI Bank's method of calculating EMIs payable; 2. The Card Member has understood that by availing the Facility, the Card Member shall not be, unless otherwise stated by ICICI Bank in writing, eligible for any reward points whatsoever, whether awarded under the ICICI Bank Reward Points Scheme or any other Reward Points Scheme on the Card that may be announced by ICICI Bank from time to time; 3. The Card Member shall renew the Card forthwith in the event the period of the Card expires during the tenure of the Facility. In the event of failure of the Card Member to renew the Card as stated above, ICICI Bank shall be entitled to call upon the Card Member to forthwith repay the Facility without prejudice to all rights and remedies against the Card Member; 4. The Card Member is deemed to have accepted these terms and conditions upon the Card Member having requested for the Facility. The Card Member is aware that these terms and conditions are available on www.icicibank.com and has read and understood the same;

Marketing Strategy Of Credit Card-ICICI Bank 5. Repayment by the Card Member of the entire amount of the Facility in case of facility availed upto the available Cash-Limit and/or Credit-Limit, to ICICI Bank shall release the Credit-Limit and/or Cash-Limit for which the Card Member is eligible by virtue of holding the Card; 6. The Card Member shall make payment of all taxes, duties, levies (including service tax) in connection with the Facility. Liabilities Of Card Member ICICI Bank reserves the right to require the Card Member to make advance payment of one or more EMIs against grant of the Facility, and ICICI Bank shall have the right to adjust the amount of the advance EMIs towards the balance amount of the Facility, at its sole discretion. Events Of Default If one or more of the events specified in this Clause ("Events of Default") occur or shall have occurred, ICICI Bank may call upon the Card Member to foreclose the Facility by a notice in writing to the Card Member.

The Card Member's commission of a breach of any of the terms and conditions and covenants herein contained or having made any misrepresentation to ICICI Bank. The Card Members having been declared as an insolvent. Any proceedings for misconduct having been initiated against the Card Member. The Card Members failure to furnish any information or documents that may be required by ICICI Bank. The Card Members entering into any composition with his/her creditors. The Card Members defaulting on any of the terms and conditions of any other loan or facility provided by ICICI Bank to the Card-Member.

The existence of any other circumstances which, in the sole opinion of ICICI Bank, jeopardize ICICI Bank's interest.

Upon the occurrence of any event of default as specified above, ICICI Bank shall be entitled to exercise rights and remedies available to it under these terms and conditions as also the Primary Terms and Conditions.

Marketing Strategy Of Credit Card-ICICI Bank

Miscellaneous Details of all the charges applicable on the facility, including, but not limited to, processing fee, foreclosure fee, service tax, interest rate shall be as per the Tariff Annexure. Nothing contained in these terms and conditions shall be construed as an obligation of ICICI Bank to continue to offer the Facility after the date of termination of the Facility. ICICI Bank reserves the right at any time without previous notice to add, alter, modify, change or vary all or any of these additional terms and conditions. The Facility shall be available on the primary as well as the add-on Card, subject to the available Cash-Limit and/or Credit-Limit and will be provided to the Card Member requesting for the Facility, at the sole discretion of ICICI Bank. The competent courts in Mumbai shall have exclusive jurisdiction to deal with any dispute that may arise out of these additional terms and conditions or in respect of the Facility. The existence of a dispute, if any, shall not constitute a claim against ICICI Bank. In addition to the general right to set off or other right conferred by law or under any other agreement, ICICI Bank may, without notice, combine or consolidate the standing balance on the Card Member's Card Account, or the account linked to the Card Account, with any other account(s) that the Card Member maintains with ICICI Bank and its group companies, and set off or transfer money standing to his/her credit in such other account(s) in or towards the satisfaction of the Card Member's liability to ICICI Bank under his/her Card Account / the Facility. The terms and conditions governing the Facility shall be in addition to and not in substitution / derogation of the Primary Terms and Conditions governing the Card. All capitalised terms used herein, but not defined, shall have the meaning ascribed to them in the Primary Terms and Conditions governing the Card.

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Marketing Strategy Of Credit Card-ICICI Bank 2.2 TYPES OF CREDIT CARDS i)Premium Cards: As the name suggest these cards offer better service to the card holder and also a higher limit. There are also many rewards associated with these cards. The target audiences for these credit cards are HNIs and top management in corporates.

ii)Cash Back Credit Cards: These kinds of cards provide rebate to the customer. This is possible because when you shop, your merchant has to pay a small sum to the credit card provider. Quite a few credit card issuers share the commission with the cardholders by giving them rebate cash back and even discounts. Generally this amount ranges between 0.25% to 1.5%. The target audiences for these kinds of cards are working people. iii)Secured Credit Cards: Its a type of card which is secured by savings bank account of the cardholder for which the card holder must deposit 100% to 200% of the total amount of the desired credit. In case the credit card holder defaults the credit card issuer can recover the amount from deposit amount. The target audiences for these kinds of cards are students and people with poor credit history.

iv)Business Credit Cards: These cards are available for business owners and executives. They are more or less similar to the premium cards. This enables business owners to keep separate transactions for personal and business purposes.

v)Prepaid Credit Cards: These are like prepaid cards, somewhat similar to debit cards. They work on the theme of pay now and use at your convenience, very similar to prepaid mobile phone cards. Cardholder needs to load the desired amount which s/he wishes to use. There are no interest charges but a purchasing fee plus monthly fees is levied. Target group for these cards are students, working people.

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Marketing Strategy Of Credit Card-ICICI Bank 2.3 PARTIES INVOLVED IN CREDIT CARDS

i)Cardholder: The holder of the card used to make a purchase; the consumer. ii)Card-issuing bank: The financial institution or other organization that issued the credit card to the cardholder. This bank bills the consumer for repayment and bears the risk that the card is used fraudulently. American Express and Discover were previously the only cardissuing banks for their respective brands, but as of 2007, this is no longer the case. Cards issued by banks to cardholders in a different country are known as offshore credit cards. iii)Merchant: The individual or business accepting credit card payments for products or services sold to the cardholder. iv)Acquiring bank: The financial institution accepting payment for the products or services on behalf of the merchant. v)Independent sales organization: Resellers (to merchants) of the services of the acquiring bank. vi)Merchant account: This could refer to the acquiring bank or the independent sales organization, but in general is the organization that the merchant deals with. vii)Credit Card association: An association of card-issuing banks such as Discover, Visa, MasterCard, American Express, etc. that set transaction terms for merchants, card-issuing banks, and acquiring banks. viii)Transaction network: The system that implements the mechanics of the electronic transactions. May be operated by an independent company, and one company may operate multiple networks. ix)Affinity partner: Some institutions lend their names to an issuer to attract customers that have a strong relationship with that institution, and get paid a fee or a percentage of the balance for each card issued using their name. Examples of typical affinity partners are sports teams, universities, charities, professional organizations, and major retailers.

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Marketing Strategy Of Credit Card-ICICI Bank x)Insurance providers: Insurers underwriting various insurance protections offered as credit card perks, for example, Car Rental Insurance, Purchase Security, Hotel Burglary Insurance, Travel Medical Protection etc.

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Marketing Strategy Of Credit Card-ICICI Bank 2.4 FEATURES OF CREDIT CARDS

Convenience, Security and Flexibility

No Joining Fee Enjoy security of a Chip Card Earn 2 PAYBACK points on every Rs.100 spent Minimum 15% savings on dining at participating restaurants Save on 2.5% fuel surcharge, waived off at HPCL petrol pumps

Smart Savings.Incredible Rewards.

Reduce fuel bills with 2.5% cash back & 2.5% fuel surcharge Earn free fuel with 2.5X rewards on fuel purchases Up to Rs.200 off every month on movie tickets Minimum 15% savings at participating restaurants Additional security of a chip

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Marketing Strategy Of Credit Card-ICICI Bank

Convert your everyday card purchases into free flights

15,000* bonus JPMiles and a complimentary ticket on joining Assured 8 JPMiles*/Rs 100 on all spends 5,000 JPMiles and another complimentary ticket on renewal Buy 1 get 1 movie ticket free, savings on dining and golf *Valid under Special Offer between July 15 October 31, 2013

Convert your everyday card purchases into free flights

7,500* bonus JPMiles and a complimentary ticket on joining* Assured 6 JPMiles*/Rs 100 on all spends 2,500 JPMiles and another complimentary ticket on renewal Buy 1 get 1 movie ticket free, savings on dining and golf *Valid under Special Offer between July 15 October 31, 2013

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Marketing Strategy Of Credit Card-ICICI Bank

Convert your everyday card purchases into free flights

1,000 Welcome Bonus JPMiles on joining* Assured 4 JPMiles/Rs 100 on all spends 1,250 bonus JPMiles every year on renewal Buy 1 get 1 movie ticket free, savings on dining and golf *Valid under Special Offer between July 15 October 31, 2013

Convert your everyday card purchases into free flights

10,000 bonus JPMiles and a complimentary ticket on joining Upto 12 JPMiles per Rs. 100 spent at www.jetairways.com 5,000 JPMiles and another complimentary ticket on renewal eBooking discount, extra baggage allowance, premier check-in Buy 1 get 1 movie ticket free, savings on dining and golf

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Marketing Strategy Of Credit Card-ICICI Bank

Convert your everyday card purchases into free flights

5,000 bonus JPMiles and a complimentary ticket on joining Upto 10 JPMiles per Rs. 100 spent at www.jetairways.com 2,500 JPMiles and another complimentary ticket on renewal eBooking discount, extra baggage allowance, premier check-in Buy 1 get 1 movie ticket free, savings on dining and golf

2,500 welcome bonus JPMiles on joining Upto 7 JPMiles per Rs. 100 spent at www.jetairways.com 1,250 bonus JPMiles on renewal every year eBooking discount, extra baggage allowance, premier check-in Buy 1 get 1 movie ticket free, savings on dining and golf

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Marketing Strategy Of Credit Card-ICICI Bank

Unlimited Cash Rewards.Every day.Everywhere.

Limited period offer: Joining fee Rs.1000 Rs.500 2X cash rewards on dining, groceries and at supermarkets Buy 1, get 1 movie ticket free, through the week Get a complimentary designer tie/stole and gift vouchers from Satya Paul on joining

Unlimited Cash Rewards.Every day.Everywhere.

Limited period offer: Joining fee Rs.1000 Rs.500 2X cash rewards on dining, groceries and at supermarkets Buy 1, get 1 movie ticket free, through the week Get a complimentary designer tie/stole and gift vouchers from Satya Paul on joining.

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Marketing Strategy Of Credit Card-ICICI Bank

Two Cards.One Account.Infinite possibilities.

India's first dual Platinum Credit Card. Benefits from American Express & MasterCard Flexible rewards plans Exclusive privileges across entertainment, dining, wellness and golf A complimentary set of Bose IE2 Audio Headphones on joining

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Marketing Strategy Of Credit Card-ICICI Bank

The next level of Credit Card Privilege

Gold Elite tier membership of the Flying Blue frequent flier programme Complimentary airport lounge access Exclusive events & Thursday night movie premieres A complimentary Apple iPad2 16GB WiFi on joining

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Marketing Strategy Of Credit Card-ICICI Bank Chapter-3 Company profile 3.1 Introduction 3.2 History Of Banking System 3.3 Corporate Banking

3.1 INTRODUCTION

ICICI Bank is India's second-largest bank with total assets of Rs.3,674.19 billion (US$ 77 billion) at June 30, 2009 and profit after tax Rs. 8.78 billion for the quarter ended June 30, 2009. The Bank as a network of 1,485 branches and about 4,816 ATMs in India a n d p r e s e n c e i n 1 8 c o u n t r i e s . I C I C I B a n k o f f e r s a w i d e range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialised subsidiaries and affiliates in the areas of investmentb a n k i n g , l i f e a n d n o n - l i f e i n s u r a n c e , v e n t u r e c a p i t a l a n d a s s e t management. ICICI was established by the Government of India in the 1960s as a Financial Institution with the objective to finance large industrial projects. ICICI was not a bank - it could not take retail deposits; and nor was it required to comply with ICICI Bank now has the largest market share among all banks in r e t a i l o r c o n s u m e r f i n a n c i n g . I C I C I B a n k i s t h e l a r g e s t i s s u e r o f credit cards in India. It was the first bank to offer a wide network of ATM's and has a large network of ATM's. ICICI Bank now has the largest market value of all banks in India, and is widely seen as a sophisticated bank able to take on many global banks in the Indian market.

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Marketing Strategy Of Credit Card-ICICI Bank 3.2 HISTORY OF ICICI BANKING SYSTEM

ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution, and was its wholly-owned subsidiary. ICICI's shareholding in ICICI Bank was reduced to 46% through a public offering of shares in India in fiscal 1998, an equity offering in the form of ADRs listed on the NYSE in fiscal 2000, ICICI Bank's acquisition of Bank of Madura Limited in an all-stock amalgamation in fiscal 2001, and secondary market sales by ICICI to institutional investors in fiscal 2001 and fiscal 2002. ICICI was formed in 1955 at the initiative of the World Bank, the Government of India and representatives of Indian industry. The principal objective was to create a development financial institution for providing 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.

After consideration of various corporate structuring alternatives in the context of the emerging competitive scenario in the Indian banking industry, and the move towards universal banking, the managements of ICICI and ICICI Bank formed the view that the merger of ICICI with ICICI Bank would be the optimal strategic alternative for both entities, and would create the optimal legal structure for the ICICI group's universal banking strategy. The merger would enhance value for ICICI shareholders through the merged entity's access to low-cost deposits, greater opportunities for earning fee-based income and the ability to participate in the payments system and provide transaction-banking services. The merger would enhance value for ICICI Bank shareholders through a large capital base and scale of operations, seamless access to ICICI's strong corporate relationships built up over five decades, entry into new business segments, higher market share in various business segments, particularly fee-based services, and access to the vast talent pool of ICICI and its subsidiaries.

In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger of ICICI and two of its wholly-owned retail finance subsidiaries, ICICI Personal Financial
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Marketing Strategy Of Credit Card-ICICI Bank Services Limited and ICICI Capital Services Limited, with ICICI Bank. The merger was approved by shareholders of ICICI and ICICI Bank in January 2002, by the High Court of Gujarat at Ahmedabad in March 2002, and by the High Court of Judicature at Mumbai and the Reserve Bank of India in April 2002. Consequent to the merger, the ICICI group's financing and banking operations, both wholesale and retail, have been integrated in a single entity.

ICICI Bank has formulated a Code of Business Conduct and Ethics for its directors and employees.

3.3 CORPORATE BANKING At ICICI Bank, we offer corporates a wide range of products and services, the technologies to leverage them anytime, anywhere and the expertise to customize them to client-specific requirements.

From cash management to corporate finance, from forex to acquisition financing, we provide you with end-to-end services for all your banking needs. The result is an overall financial solution for your company that helps you accomplish your objectives. ICICI Bank can guide you through the universe of strategic alternatives - from identifying potential merger or acquisition targets to realigning your business' capital structure. ICICI Bank has been the foremost arrangers of acquisition finance for cross border transactions and is the preferred financer for acquisitions by Indian companies in overseas markets. The Bank has also developed Forex risk hedging products for clients after comprehensive research of the risks a corporate body is exposed to, e.g., Interest Rate, Forex, Commodity, Credit Risk, etc. We offer you global services through our correspondent banking relationship with 950 foreign banks and maintain a NOSTRO account in 19 currencies to service you better and have strong ties with our neighbouring countries

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Marketing Strategy Of Credit Card-ICICI Bank ICICI Bank is the leading collecting bankers to Public & Private Placement/ Mutual Funds/ Capital Gains Bonds issues. Besides, we have products specially designed for the financial intermediaries to meet their unique requirements. We support your international business by meeting working capital requirements of export and import financing. We also have a host of non-funded services for our clients. Whatever your industry, size or financial requirements, ICICI Bank has the expertise and the solutions to partner you all the way.

Transaction Banking

The Bank delivers world class banking services to financial sector clients. Our current roaming accounts empower you with 'Anytime, Anywhere Banking'. They are designed for your convenience. Our comprehensive collection and payment services span India's largest CMS network of over 4,500 branches. We provide correspondent banking tie-ups with foreign banks to assist them in their India-related businesses.

Loan Syndication

The FISG is responsible for syndication of loans to corporate clients. We ensure the participation of banks and financial institution for the syndication of loans. Some of the products syndicated are Project Finance Corporate Term Loans Working Capital Loans Acquisition Finance, etc.

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Marketing Strategy Of Credit Card-ICICI Bank Sell Down

ICICI Bank is a market leader in the securitisation and asset sell-down market. From its portfolio, the FISG offers different products to its clients in this segment. The products are: Asset-Backed Securities (ABS). Mortgage-Backed Securities (MBS). Corporate Loan Sell-down. Direct Loan Assignment. Buyouts As a part of a risk-diversification and portfolio-churning strategy, ICICI Bank offers buyouts of the assets of its financial sector clients.

Resources The Bank also raises resources, from clients, for internal use by issuing a gamut of products, which run from Certificates of Deposit (CDs) to Term deposits to Term Loans.

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Marketing Strategy Of Credit Card-ICICI Bank

Chapter-4 CREDIT CARD V /S DEBIT CARD Meaning:- A debit card is either linked to a bank account or is a prepaid card. In either case, the card draws on funds that the consumer (owner of the card) has already deposited with a financial institution. On the other hand, a credit card is a kind of loan. When a consumer uses a credit card, the financial institution fronts to the consumer credit (a loan). Purchases are totaled and billed monthly and the user pays a few weeks after receiving the monthly bill.

Credit Card

Debit Card

Where money comes from:

Borrowing money from a bank or financial institution. (Spending "other's" money)

Funds taken from the money that you have in your bank account. (Spending your "own" money)

Can be used as:

Credit card only

Debit or credit card i.e., a debit cardmay be used without a PIN for certain types of transactions such as e-commerce.

Line of Credit:

Carries Line of Credit

No Line of Credit

PIN Number:

Usually not. However, some credit cards may provide PINs to allow consumers to withdraw money from ATMs just like debit cards. Such withdrawals are generally a bad idea because they

PIN number provided, but not always asked to punch in.

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Marketing Strategy Of Credit Card-ICICI Bank

Credit Card

Debit Card

carry high fees and interest rates.

Picture ID required before issuance:

Yes

No

Interest:

If a credit card bill is not paid in full, interest is charged on outstanding balance and the interest rate is very high.

No interest is charged because no money is borrowed. Consumer's own funds are used to make purchases.

Credit History:

Responsible credit card usage and payment can improve one's credit rating. Credit cards typically report account activity to at least one ofthe three major credit bureaus on a monthly basis.

Does not affect credit history.

Legal Liability laws:

Strict. Consumer liability limit forcredit card fraud is $50 if the credit card company is notified within 60 days in written since the fraudulent charges.

Lean. Consumer liability limit for debit card fraud is $50 if the bank is notified within two days of noticing the fraudulent charges.

Risk involved:

Low. Consumers are protected against unauthorized purchases as long as the fraud is reported in a timely manner. Consumers are not

High, as they are attached to a bank account. A person does not need a PIN number to use a debit card and therefore can easily drain

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Marketing Strategy Of Credit Card-ICICI Bank

Credit Card

Debit Card

responsible for charges incurred in fraudulent transactions.

a persons bank account, causing extreme problems.

Fraud:

Only problem is proving that someone else has used the card.

With a debit card the person has to figure out how to get their money back and if any checks bounced they are responsible for those as well.

Limit:

Credit line, which can be increased/decreased from the time of applying.

Equals your account limit.

Overdraw Fees:

Low. Some credit card companies allow to overdraw amount over the maximum credit line with a fee.

High "overdraft" fees. Possible to overdraw amount over the account limit

Connected to:

Need not be connected to any bank account.

Checking or Savings Account

Monthly bills:

Yes

No

Offers protection and other benefits:

Often. For example, extended warranties on new products, or insurance on a rental car.

Sometimes. For example, extended warranties on new products, or insurance on a rental car.

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Marketing Strategy Of Credit Card-ICICI Bank

FINDINGS

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Marketing Strategy Of Credit Card-ICICI Bank

APPENDIX

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Marketing Strategy Of Credit Card-ICICI Bank FUTURE PROSPECTUS

Future prospects of ICICI bank To be the leading provider of financial services in India and a major global bank. To be the preferred brand for total financial and banking solutions for both corporates and individuals To be the dominant Life, Health and Pensions player built on trust by world- class people andservice. This we hope to achieve by: Understanding the needs of customers and offering them superior products and service.Leveraging technology to service customers quickly, efficiently and conveniently.Developing and implementing superior risk management andinvestment strategies to offer sustainable and stable returns to ourpolicyholders. Providing an enabling environment to foster growth and learning for our employees

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Marketing Strategy Of Credit Card-ICICI Bank

CONCLUSION

ICICI Bank proves to be an ideal & leading other banks by using latest technologies and variety of services. The students are expecting more beneficial services from the bank such as educational loans, etc. Students of all colleges accept ICICI Bank Bank @ Campus Account as a good step into the students services. As the first bank to introduce special savings account for students, it should keep-up the expectations of students by regularly conducting surveys on student service and alter services in favour of students. It is easy to gain a fine position but harder to retain it. Students are the building blocks of a nation, In future, they mature to employees & business persons with lots of money at ICICI Bank!

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Marketing Strategy Of Credit Card-ICICI Bank

Bibliography

Internet

Websites:

i)www.iciciprulife.com ii)www.icicibank.com iii)www.bima.com

Directories:

i) Telephone Directory

Other Materials :

i) Marketing Management by Philip Kotler. ii)Human Resources Management by Ashawathapa

Product Brochures.

News Papers like Mid day, Mumbai Mirror and Times of India

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