PREFACE

ICICI BANK IS ONE OF THE LEADING PLAYER IN THE

INDIAN RETAIL ASSET FINANCE MARKET. IT OFFERS
LOANS FOR HOMES , FOR BUYING OR CONSTRUCTION
HOMES OR EVEN TO EXTEND OR IMPROVE THE
EXISTING HOME. IT ALSO FINANCE THE PURCHASES OF
LAND.
ICICI BANK CATERS TO THE WIDE RANGE OF BANKING
SERVICES COVERING BOTH COMERCIAL & INVESTMENT
BANKING ON WHOLESALE AND TRANSACTIONAL OR
BRANCH BANKING ON THE RETAIL SIDE.
THE SUMMER TRAINING UNDERTAKEN AT ICICI BANK
LTD. IS ONE SUCH EXPERIENCE WHEREIN THE PROJECT
AIMS AT HELPING THE ORGANIZATION TRY OUT A NEW
POSSIBILITY IN THE FIELD OF MARKETING. IT IS A NEW
PLATFORM OF LEARNING THROUGH PRACTICAL
EXPERIENCE
WHICH
INCOPORATES
SURVEYS,COMPARATIVE ANALYSIS, AND BRAND
PROMOTION AS WELL AS UNDERSTANDING THE OFFICE
ENVIORMENT.

CONTENTS
1. INTRODUCTION
2. COMPANY PROFILE
Objectives
Values
Products offered by ICICI
Customer Accounts
Investment Products
Loans
Services offered by ICICI
Retail Banking
Corporate Banking
Services to NRIs
Management
3. RESEARCH METHODOLOGY
4. DATA ANALYSIS
5. SURVEY & OBSERVATION
6. CONCLUSION,FINDINGS & SUGGESTIONS
7. BIBLIOGRAPHY
8. QUESTIONNAIRE

INTRODUCTION
BANKING
India cannot have a healthy economy without a sound and effective
banking system. The banking system should be hassle free and
able to meet the new challenges posed by technology and other
factors, both internal and external.
In the past three decades, India's banking system has earned
several outstanding achievements to its credit. The most striking is
its extensive reach. It is no longer confined to metropolises or
cities in India. In fact, Indian banking system has reached even to
the remote corners of the country. This is one of the main aspects
of India's growth story.
The government's regulation policy for banks has paid rich
dividends with the nationalization of 14 major Private Bank in
1969. Banking today has become convenient and instant, with the
account holder not having to wait for hours at the bank counter for
getting a draft or for withdrawing money from his account.
HISTORY OF BANKING IN INDIA
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:
Early phase of Indian banks, from 1786 to 1969

Nationalization of banks and the banking sector reforms,

from 1969 to 1991

New phase of Indian banking system, with the reforms after

1991

Phase1
The first bank in India, the General Bank of India, was set up in
1786. Bank of Hindustan and Bengal Bank followed. The East
India Company established Bank of Bengal (1809), Bank of
Bombay (1840), and Bank of Madras (1843) as independent units
and called them Presidency banks. These three banks were
amalgamated in 1920 and the Imperial Bank of India, a bank of
private shareholders, mostly Europeans, was established.
Allahabad Bank was established, exclusively by Indians, in 1865.
Punjab National Bank was set up in 1894 with headquarters in
Lahore. Between 1906 and 1913, Bank of India, Central Bank of
India, Bank of Baroda, Canara Bank, Indian Bank, and Bank of
Mysore were set up. The Reserve Bank of India came in 1935.
During the first phase, the growth was very slow and banks also
experienced periodic failures between 1913 and 1948. There were
approximately 1,100 banks, mostly small. To streamline the
functioning and activities of commercial banks, the Government of
India came up with the Banking Companies Act, 1949, which was
later changed to the Banking Regulation Act, 1949 as per
amending Act of 1965 (Act No. 23 of 1965). The Reserve Bank of
India (RBI) was vested with extensive powers for the supervision
of banking in India as the Central banking authority. During those
days, the general public had lesser confidence in banks. As an
aftermath, deposit mobilization was slow. Moreover, the savings
bank facility provided by the Postal department was comparatively
safer, and funds were largely given to traders.

Phase2
The government took major initiatives in banking sector reforms
after Independence. In 1955, it nationalized the Imperial Bank of
India and started offering extensive banking facilities, especially in
rural and semi-urban areas. The government constituted the State

Bank of India to act as the principal agent of the RBI and to handle
banking transactions of the Union government and state
governments all over the country. Seven banks owned by the
Princely states were nationalized in 1959 and they became
subsidiaries of the State Bank of India. In 1969, 14 commercial
banks in the country were nationalized. In the second phase of
banking sector reforms, seven more banks were nationalized in
1980. With this, 80 percent of the banking sector in India came
under the government ownership.
Phase3
This phase has introduced many more products and facilities in the
banking sector as part of the reforms process. In 1991, under the
chairmanship of M Narasimham, a committee was set up, which
worked for the liberalization of banking practices. Now, the
country is flooded with foreign banks and their ATM stations.
Efforts are being put to give a satisfactory service to customers.
Phone banking and net banking are introduced. The entire system
became more convenient and swift. Time is given importance in all
money transactions.
The financial system of India has shown a great deal of resilience.
It is sheltered from crises triggered by external macroeconomic
shocks, which other East Asian countries often suffered. This is all
due to a flexible exchange rate regime, the high foreign exchange
reserve, the not-yet fully convertible capital account, and the
limited foreign exchange exposure of banks and their customers.
THE BANKING STRUCTURE IN INDIA
The commercial banking structure in India consists of scheduled
commercial banks and unscheduled banks. Scheduled banks
constitute those banks that are included in the Second Schedule of
Reserve Bank of India (RBI) Act, 1934.

As on June 30, 1999, there were 300 scheduled banks in India

having a total network of 64,918 branches. The scheduled
commercial banks in India comprise State Bank of India and its
associates (8), nationalised banks (19), foreign banks (45), private
sector banks (32), co-operative banks, and regional rural banks.
Before the nationalization of Indian banks, the State Bank of India
(SBI) was the only nationalized bank, which was nationalized on
July 1, 1955, under the SBI Act of 1955. The nationalization of
seven State Bank subsidiaries took place in 1959.
After the nationalization of banks in India, the branches of the
public sector banks rose to approximately 800 percent in deposits
and advances took a huge jump by 11,000 percent.
Nationalization Process
1955: Nationalization of State Bank of India

1959: Nationalization of SBI subsidiaries

1969: Nationalization of 14 major banks

1980: Nationalization of seven banks with deposits over Rs

200 crore

BANKS IN INDIA
In India, banks are segregated in different groups. Each group has
its own benefits and limitations in operations. Each has its own
dedicated target market. A few of them work in the rural sector
only while others in both rural as well as urban. Many banks are
catering in cities only. Some banks are of Indian origin and some
are foreign players.
Banks in India can be classified into:
Public Sector Banks

Private Sector Banks

Cooperative Banks

Regional Rural Banks

Foreign Banks
One aspect to be noted is the increasing number of foreign banks in
India. The RBI has shown certain interest to involve more foreign
banks. This step has paved the way for a few more foreign banks to
start business in India.

RESERVE BANK OF INDIA (RBI)

The central bank of the country is the Reserve Bank of India
(RBI). It was established in April 1935 with a share capital of Rs 5
crore on the basis of the recommendations of the Hilton Young
Commission. The share capital was divided into fully paid shares
of Rs 100 each, which was entirely owned by private shareholders
in the beginning. The government held shares of nominal value of
Rs 220,000.
The RBI commenced operation on April 1, 1935, under the
Reserve Bank of India Act, 1934. The Act (II of 1934) provides the
statutory basis of the functioning of the Bank. The Bank was
constituted to meet the following requirements:
Regulate the issue of currency notes

Maintain reserves with a view to securing monetary stability

Operate the credit and currency system of the country to its

advantage

FUCTIONS OF THE RBI

The Reserve Bank of India Act of 1934 entrusts all the important
functions of a central bank with the Reserve Bank of India.
Bank of Issue: Under Section 22 of the Act, the Bank has the sole
right to issue currency notes of all denominations. The distribution
of one-rupee notes and coins and small coins all over the country is
undertaken by the Reserve Bank as an agent of the government.
Banker to the Government: The second important function of the
RBI is to act as the governments banker, agent, and adviser.
Bankers' Bank and Lender of the Last Resort: The RBI acts as
the bankers' bank. Since commercial banks can always expect the
RBI to come to their help in times of banking crisis, the RBI
becomes not only the banker's bank but also the lender of the last
resort.
Controller of Credit: The RBI is the controller of credit, i.e., it
has the power to influence the volume of credit created by banks in
India. It can do so through changing the Bank rate or through open
market operations.
Custodian of Foreign Reserves: The RBI has the responsibility to
maintain the official rate of exchange. Besides maintaining the rate
of exchange of the rupee, the RBI has to act as the custodian of
India's reserve of international currencies.
Supervisory Functions: In addition to its traditional central
banking functions, the RBI has certain non-monetary functions of
the nature of supervision of banks and promotion of sound banking
in India. The Reserve Bank Act, 1934, and the Banking Regulation
Act, 1949, have given the RBI wide powers of supervision and
control over commercial and co-operative banks, relating to

licensing and establishments, branch expansion, liquidity of their

assets, management and methods of working, amalgamation,
reconstruction, and liquidation.
INDIAN BANKs ASSOCIATION (IBA)
The Indian Banks Association (IBA) was formed on September
26, 1946, with 22 members. Today, IBA has more than 156
members, such as public sector banks, private sector banks, foreign
banks having offices in India, urban co-operative banks,
developmental financial institutions, federations, merchant banks,
mutual funds, housing finance corporations, etc.
The IBA has the following functions:
Promote sound and progressive banking principles and
practices.

Render assistance and to provide common services to

members.

Organize co-ordination and co-operation on procedural,

legal, technical, administrative, and professional matters.

Collect, classify,
information.

Pool expertise towards common purposes such as cost

reduction, increased efficiency, productivity, and improving
systems, procedures, and banking practices.

Project good public image of banking through publicity and

public relations.

Encourage sports and cultural activities among bank

employees.

and

circulate

statistical

and

other

BANKING ACTIVITIES

Retail bankin g, dealing directly with individuals and small

businesses

Business banking,
businesses

Corporate banking, directed at large business entities

Private banking, providing wealth management services to

high networth individuals

Investment banking, activities in the financial markets, such

as "underwrite" (guarantee the sale of) stock and bond issues,
trade for their own accounts, make markets, and advise
corporations on capital market activities like mergers and
acquisitions

Merchant banking is the private equity activity of investment

banks

Financial services, global financial institutions that engage in

multiple activities such as banking and insurance

providing

services

to

mid-market

INTRODUCTION OF ICICI BANK

ICICI Bank is India's second-largest bank with total assets of about
Rs.5,367.95 billion (US$ 99 billion) at March 31, 2013 and profit
after tax of Rs. 83.25 billion (US$1,533 million) for the year ended
March 31, 2013.The Bank has a network of 3,620 branches and
11,292 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 specialized subsidiaries and
affiliates in the areas of investment banking, life and non-life

insurance, venture capital and asset management. ICICI Bank set

up its international banking group in fiscal 2002 to cater to the
cross border needs of clients and leverage on its domestic banking
strengths to offer products internationally.
ICICI Bank currently has subsidiaries in the United Kingdom,
Canada and Russia, branches in Singapore and Bahrain and
representative offices in the United States, China, United Arab
Emirates, Bangladesh and South Africa.
ICICI Bank's equity shares are listed in India on the 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).
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
management 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 transactionbanking 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 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.

OBJECTIVES
The primary objective of ICICI Bank is to enhance residential
housing stock and to promote home ownership.
To advance money to any person, company ,corporation,
society or association at interest either with or without any
security to enable the person to erect, purchase, enlarge or
repair any house, building, any part of portions or to purchase
any freehold, leasehold, any land or property in india upon the
terms and conditions as laid by the company.
To develop any land acquired by the company or in which the
company is interested for building purposes, constructing,
altering, or building lease or building agreement and by
advancing money and entering into contracts and agreements of
all kinds with builders, tenants and others.
Subject to the provisions of Banking Regulation Act,1949 to
receive money on deposits, loans or otherwise with or without
interest and to secure the same in such a manner and on such
terms and conditions as the company may think fit and proper
and to guarantee the debts, obligations and contracts of any
person, firm, company or corporations.
To negotiate loans of every description.
To finance or assist in financing the sale of houses, buildings,
flats, either furnished or otherwise by way of hire purchase,
deferred payments or similar transactions and to carry on
subsidised finance or assist in subsidising or financing the sale
of these houses, buildings, flats, furnished or otherwise, upon
any terms.

 To aid any government, state or municipal corporation,

company/association or individuals with capital, credit means or
resources for prosecution of any works, undertakings, projects
or enterprises which are conducive to all or any of the objects of
the company.
To adopt such mean for promoting the business of the company
may seem expedient and in particular by advertising in the press
by circulars and exhibitions, by organising camps, by
publication of books and periodicals by granting prizes, rewards
and donations.
To provide for the welfare of the employees or ex-employees of
the company and the wives, widows and the children or the
dependents of such person in such a manner as the company
seems fit and proper.
To effect and mention insurance against loss of any property or
any person employed by the company or against any other loss
to the company.
To undertake and carry on the business in india or abroad of
merchant banking, including consultancy services of all kinds
and
descriptions,
investment
counselling,
portfolio
management, providing financial and investment assistance,
syndication of loans, counselling and tie up for project and
working capital finance, syndication of financial arrangements
whether it domestic or international markets, handling of
mergers and amalgamations assisting in setting up of joint
ventures, foreign currency lending, tax consultancy,
underwriting of any securities, whether singly or consortium
without prejudice to the generality of the foregoing to act as
advisor and consultants or managers to the issue of shares,
debenture , stocks, bonds and securities.

VALUES OF ICICI
COMMITMENT TO CARE
The warmth, the interaction, the experience, the follow up service
and most importantly, the enduring relationship between customer
and corporation which is sustained and strengthen over the years,
constitute the crucial difference. Such a commitment has been the
constant under current of all their activities, manifesting itself in
the ways in which they have functioned in the housing finance
industry. ICICI believes in commitment to care.

COMMITMENT TO DIVERSIFIED
FINANCIAL SERVICES

RANGE

OF

In todays business environment, several ICICI financial service

entities function: each autonomous, each in a different endeavor
and, together, a key and forward thinking group under the ICICI
banner, with firm roots in the ICICI attitude of commitment,
particularly to customer care. The commitments ICICI make to
itself and others, and their integrity to those commitments is
essence and clearest manifestation of ICICI proactivity. It is also
the essence of their growth.

PUTTING CYPER-FRSH IDEAS TO WORK

An imaginative approach in customer service in imbues the
attitude of each their relatively young, but rapidly growing
financial service companies. The endeavor is to make dexterous
use of state-of-the-art-technology reaching out across the world
with, the reassurance of an instant, person-to-person connectivity,
wherever this is needed.

Take a few innovative examples:

The facilities from ICICI Bank, like being able to access your
account-which includes your demat account, if you have entrusted
it to us- from anywhere in the world, at any time using netbanking
or shopping with our international debit card, anywhere in india
and over 140 countries abroad.

GENERATING SPEED WITH SYNERGY

ICICI securities provides flexibility of transacting in securities
through the internet or on the phone, or both which makes for
convenience as much as for speed. It is simplifies when you work
with ICICI, with the latter offering an exhaustive range of real
estate services, information and professional guidance.

KEEPING FAITH AND KEEPING TRACK

Customers whether individuals, groups or corporates, dealers or
realtors are assured that every transaction is based on the tenets of
trust and transparency and rigorous professionalism a significant
part of ICICI commitment and concern.
Secondly, every customer doesnt just deal with todays computer
desktop. With ICICI bank, no matter where you are located the
special Customer Relationship Manager assigned to you keeps
tabs, connects, answers queries and helps solve problems.

PRODUCTS OF ICICI BANK

1.
2.
3.

Customer Accounts
Investment Products
Loans

CUSTOMER ACCOUNTS
Among the various products of ICICI Bank major products are
customer accounts. It offers following type of accounts:1.

Saving Account:-ICICI Bank has a value added saving

account. In this account customer has to maintain a minimum
quarterly average balance of RS. 5000/. Anywhere anytime
and anyway service is provided to the account holders. when
balance exceeds RS. 10000/- money is converted into fixed
deposit.

2.

Kid-e-Bank: This account is for kids of age 5 to 12 years.

Transactions of account is operated by kids on internet. The
main purpose of this account is to develop a habit of saving
in kids.

3.

Bank @ campus: This account is specially for students who

are atleast 18 years old. Minimum balance of Rs.500/- needs
to be maintained.

4.

Current Account : Roaming current account is useful for

businessman as it can be operated from anywhere. Bank
offers a suite of current account products that meets all
banking requirements.

5.

Business Multiplier account: This account is a premium

current account that understand the needs of small business
segment. Features include the flexibility to earn interest on
funds making it a truly profitable current account .Minimum
quarterly balance of Rs.100000/- is mainitained. Any amount
in excess of Rs. 300000/- is converted into FD.

6.

Power pay Account: This account is packed with powerful

advantages for the employees as well as employer. power pay
is a feature rich corporate pay roll account. Convenience is
the hallmark of this facility as it significantly cut down the
payroll processing work load and reduces paper work.

7.

E-broking : it is a 3-in-1account which integrates banking,

broking and demat account. This enable customers to trade in
shares without going through the hassle of tracking
settlement cycles, writing cheques and transfer instructions
etc. This account gives various options while trading in
shares.

Chapter-2 Investment products

In volatile market situation where there is no certainty of long term
fixed returns, investment of funds needs to be handled with
prudence. A detailed analysis from the point of view of interest
theories, risk management, hedging and liquidity has to be done in
order to maintain
Highest returns to the customers are much more informed &
demanding not only they want good services at the door step but
also they compare returns, assess the quality of portfolio. ICICI
Bank offers a basket of portfolios taking into considerations all
the above expectations of customers. These products not only give
the investors good returns but also help them to aware about the
discriminate portfolio management scheme. These products are

Term Deposit, GOI Relief Bonds, Mutual Fund, ICICI Bonds and
Different insurance plans. Details are given below:
2.

Term deposit: This Product is simply a fixed deposit of

money. The time period vary & interest rates also vary with
the period of deposit. ICICI Bank has product in which time
period is from 7-14 days to 10 years. Other than NRE Fixed
Deposit is all citizen including senior citizen.

3.

GOI Relief Bonds: Govt. of India relief bonds allows

customers another avenue to earn tax free interest on
investment and exemption from wealth tax. Two types of
Bonds are available viz 8% Relief Bonds & 7 Relief Bonds.
These are for 5 years and 6 years time period. The bonds are
rated as AAA by CRISIL/CARE. Minimum 1000 can be
invested in these Bonds.

4.

Mutual Fund: Mutual fund provides an opportunity to partake

in a mix of portfolios of various securities tailored to
customers profile. In fact it is a effective way of pursue life
time financial goal with various advantages. Customers can
invest in four types of mutual funds on the basis of risk and
return equity funds. Income funds liquid funds and balanced
funds.

5.

Insurance:- ICICI Prudential life Insurance offers following

Insurance Products:1) ICICI Pru Save n Protect.
2) ICICI Pru Re Assure
3) ICICI Pru Life Time Pension
4) ICICI Pru Assure Invest
5) ICICI Pru Cash Back
6) ICICI Pru Life Guard

CHAPTER 3 LOANS
ICICI Bank offers wide variety of Loans Products to suit your
requirements. Coupled with convenience of networked branches/
ATMs and facility of E-channels like Internet and Mobile Banking,
ICICI Bank brings banking at your doorstep. Select any of our loan
product and provide your details online and our representative will
contact you for getting loans. ICICI Expanded their reach to more
than 140 locations across the country.
1.

Home loan:-ICICI is 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. ICICI
bank was the first to introduce adjustable rate home loans
with interest rates linked to a floating prime lending rate
.This product received excellent response from customers
across the country and was a key driver of growth in
mortgage segment. During the year 2005, ICICI is the No. 1
home loan provider.

2.
Personal loan:- ICICI Personal Loan is for Business & other
activities like marriage, medical, education etc. Salaried as well as
self employed are eligible to apply for loan. Repayment period is
also sufficient enough to pay back keeping the nature of loan.
3.
Auto Loan:- In auto loan ICICI is market leader. Distribution
Network is expanded to 145 cities. They are able to offer
competitive products to customers by leveraging economies of
scale resulting from the rapid growth in
operations. The key drivers of growth were the strength their
corporate relationship with the automobile manufacturer &
customer service forum.

Avail attractive schemes at competitive interest rates from

the No. 1 financier for two wheeler loans in the country. Finance
facility upto 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.
ICICI Bank is the preferred financier for almost all leading
tractor manufacturers in the country. Flexible repayment options in
tandem with the farmers seasonal liquidity. Monthly, quarterly
and half yearly repayment tenures from 1 year to 9 years.

ICICI HOME LOAN

ICICI bank is No. 1 home loan provider in the country. ICICI Bank
provides a variety of loans against residential & Non-residential
property. It provides loans not only for existing residential or nonresidential property but also for new premises.
ICICI Bank has many home loan products like Purchase-Loan,
ICICI Overdraft, Extension loan, Top-up on your existing loan,
Resale loan, Loan against property etc. ICICI Bank provides loan
to different individuals and different business organisation for
personal & commercial reasons.
ICICI bank home loan has a product like Property Overdraft. It is
an overdraft that offers a loan limit against your property. In this
product bank fixes a limit against your residential or nonresidential
premises and then it charges a certain amount of interest on that
limit
The amount you withdrawn from youre a/c will be reckoned for
interest. This products offers such a great features to businessman
and professionals for their business and profession. Like property

overdraft ICICI Bank home loan has a other product called loan
against property, In which bank gives loan against residential or
commercial property. Bank gives loan on the basis of house
valuation & income eligibility. Bank sanctions loan on the basis of
above point and the customer has to pay the installments of the
loan he has taken.
STEPS IN PROCESSING OF A LOAN APPLICATION
CREDIT INTERVIEW:This is first stage when a person comes in for inquiry.
Eligibility is determined on the basis of income, ability to pay the
installments, bank account details. These all points keep into
consideration while accessing the eligibility of customer.
Eligibility:Home Loan:1. You must be atleast 21 years of age when loan
is sanctioned.
2. The loan must terminate before or when you
turn 65 years of age or before retirement,
whichever is earlier.
3. You must be employed or self-employed with a
regular source of income.
Land loan:1. You must be at least 21 years of age when the
loan is sanctioned.
2. The loan must terminate before or when you
turn 65 years of age or before retirement,
whichever is earlier.
3. You must be employed or self-employed with a
regular source of income.

4. You must be purchasing a plot of land for

residential use.
5. You must be purchasing a plot of land for
residential use.
6. The purchase has to be from a development
authority or from a registered co-operative
society.
7. The purchase of he land must be for the
construction of a house.
8. The plot of land must be clearly demarcated
with clear boundaries.
Office premise loan:1. You must be at least 21 years of age when the
loan is sanctioned.
2. The loan must terminate befoe or when you
turn 65 years of age.
3. You must self-employed with a regular source
of income.
4. The
loan
can
be
for
the
purchase/construction/extension
of
nonresidential property.
5. A loan for renovation or improvement will be
given only at the time of acquisition of
property.
6. Professionally qualified and self-employed
individuals (doctors, pathologists, chartered
accountants, cost accountants, company
secretaries, architects, engineers, consultants,
lawyers, chemists) can apply.
7. A minimum of 3 years work experience is a
must.

Home Equity Loans:1. You must be at least 21 years of age when the
loan is sanctioned.
2. The loan must terminate befoe or when you
turn 65 years of age.
3. You must self-employed with a regular source
of income.
4. You must be the owner of a self-occupied
property.
CREDIT ASSISTANCE :Before the sanction of loan double check is done and then the file
is sent to top authorities for approval. After their approval loan is
sanctioned and if they find some discrepancy in the file then the
loan amount would not be sanctioned. Credit assistance is a vital
task before sanctioning a loan file hence it should be done by the
qualified people like financial manager or credit manager. These
tasks are really very important in a loan application.
A number of factors are taken into account when assessing your
repayment capacity. Your income, age, number of dependants,
qualifications, assets and liabilities, stability/ continuity of your
employment / business are some of them.
However, there are many ways by which the customer can enhance
their eligibility. these are as follows:1. A customer can include his/her husband/wife income to
increase his/her eligibility. He can add co-owner of the property
to his loan application as an co-applicant.

2. A customer can enhance their eligibility by some additional

security like bonds, fixed deposits and LIC policies.
3. Before moving further company requires essential documents
of the loan applicant. On the basis of which company manager
assesses his credibility and other verification.
Documents required by the company:1. Passport size photograph.
2. Age verification: PAN card, Voters ID, Passport, License.
3. Bank statement for the last six months.
4. Income Documents e.g. Latest Form 16, Certified IT returns for
latest 3 years.
5. Admin Fee cheque.
6. Loan Enclosure letter.
These are the documents required for sanctioning a loan. You may
be asked to submit further legal documents if required by ICICI
Bank or its approved lawyers.
Customer are being asked to do retain photocopies of all
documents being submitted by him or his respondent.
TECHNICAL APPRAISAL AND
LEGAL DOCUMENTATION:The third process of a loan application is the technical
appraisal and legal documentation. This work is done by the
engineer or legal authorities. An engineer employed by the
company does the technical appraisal. This is undertaken when the
loan is acquired for construction purpose.

The other work which is done next is the legal

documentation. In this process legal authorities like advocates see
all the necessary paper which is needed to verify that the property
is related to the loan applicant or not. The papers which are needed
for the legal purpose are registry paper of the property, lease-dead,
transfer-paper etc.
After the verification of all the technical and legal
documentation file proceeds further. If technical & legal person
seeks any dissatisfaction in the paper, they dont proceed the file
further.
FINALIZATION OF SANCTION/REGECTION
After the technical & legal clearance of the property and
evaluating the income eligibility of the loan applicant top
authorities decide on the loan application that it should be
sanctioned or not.
The decision on the loan application regarding the sanction
is taken by the finance manager or credit manager of the company.
Before sanctioning the loan amount he first deliberately looks on
the income eligibility of the applicant, if he has got the required
income profile and have the ability to pay the installments on time
then only the loan is sanctioned and vice a versa.
In some cases customer doesnt have the ability that is
required by the company as per the sanctioning amount, in that
situation company wont proceed further on that file. Hence
sanctioning amount varies individual to individual as their
eligibilitys.

LETTER OF SANCTION
After sanctioning the loan application company offers the
sanction letter to the loan applicant. This letter includes name of
the loan applicant, type of loan, loan amount which has sanctioned
by the company, loan tenure that is the time which is being given
to the loan applicant by the company, loan installments that is to be
paid by the applicant, interest rate on which loan has given and
some other details like terms & conditions.
LOAN DISBURSEMENT
After the loan is sanctioned the disbursement is done as per
the requirements of the customer. Generally the disbursements are
done in three installments in case of home loan and in other cases
it is done in one time. The disbursements are made by check only.
The time duration for disbursements is six months therefore it
should be taken before the six months.
The loan will be disbursed after customer identify and select the
property or home that he/she is purchasing and on his/her
submission of the requisite legal documents.
While he/she may be under the impression that the list of
documents asked for is rather extensive, please note that it is for
your own good. Each and every single document asked for will be
verified and checked to ensure his/her safety.
This process might takes some time but it is just to ensure that
he/she is having the clear title on the property. And after the
completion of all the legal and technical verifications to ensure that
he/she has the full rights to his/her home property.
The 230 A Clearance of the seller and / or 37I clearance from the
appropriate income tax authorities (if applicable) is also needed.

On satisfactory completion of the above, on registration of the

conveyance deed and on the investment of your own contribution,
the loan amount (as warranted by the stage of construction) will be
disbursed by ICICI Bank. The disbursement will be in favour of
the builder/seller.
List of documents those are required for disbursement
Standard Documents:
1. Loan Agreements.
2. Disbursement Requests.
3. Post-dated cheques.
4. Personal guarantors documents, as the case may be.

SERVICES OFFERED BY ICICI BANK

ICICI bank among the Indias most eminent and leading place
provides many value added services to its customers.
It provides retail banking, corporate banking services and also
services to NRIs. it also includes insurance, investment,And other
financial or non-financial services.
In retail banking services it includes Munshi, Bureau de charge,
demat services, doorstep banking, credit facilities, phone banking,
internet banking and mobile banking. whereas in insurance
services it provides various range of insurance services that covers
wide range of risks like life insurance, accidental insurance,
mediclaim and other general insurance.
In Investment services it has mutual fund investment, online
trading of shares & debentures. It(ICICI Direct.COM) also
provides the broking services to the customer which is having
leading number of customers who invest their money into the share
market. It provides maximum profit and minimum risk having
mutual fund investment to its customers. customers obtain
maximum gain through its various investment policies. The
various retail, corporate or NRIs services are mentioned below:Retail Banking Services:The retail business is the key ingredient of growth strategy. With a
complete basket of product for various segment like kid-e-bank for
kids, bank@campus
for students, power pay for salaried
employees, ICICI select for high networth individuals and business
multiplier for businessmen bank caters to the needs of the society
of retail banking.

Services:1.

Munshi:- It is an online service providing a complete range

of accounting and taxation services.

2.

Bureau de charge:- By this service customers can fulfil all

their foreign currency needs. They can buy internationally
valid travellers cheques by the help of this facility.

3.

Demat services:- Demat services take away the risk

associated with holding physical certificates of the shares and
the debentures. Earlier shareholder or debentureholders had
to keep the certificate for each transactions. But since the
evolution of the dematerialised account the transactions into
the shares and debentures has become very easy and risk to
keep the certificate has minimised and almost died.

4.

Door step banking:- ICICI bank provides the door step

banking to its customers. for providing these facilities it
charges certain fees. In this facility customers need not to go
to bank. Bank collects cheques or cash from their places by
their representatives.

5.

Credit card:- ICICI bank provides various credit cards to its

customer in forms of credit instrument. these cards have
certain cash limit and purchase limit. with the help of these
cards customers need not to have cash in his pocket at the
time of purchasing. whenever a person needs cash he can
withdraw from this card or whenever he purchases something
he does not need to put cash in his pocket, with the help of
this card he can make instantly payment at the time of
purchasing.

6.

Phonebanking:- With this facility one can conduct almost all

banking transactions over the phone. Transactions is being

done by his one call. bank charges certain fees for this
facility.
7.

Mobilebanking:- This service provides the latest information

on account balance, credit card outstanding & allows
customers to request a check book or account statement. A
customer gets alert messages on his mobile when he
demands.

8.

Internet banking:- ICICI Bank gives the freedom to its

customer to get all the information about his account on the
internet. A customer gets all needed information on the
internet anywhere in world.

Corporate banking services:ICICI Bank corporate banking is based on providing customized

financial solutions to its clients, tailored to meet their
requirements. The corporate banking strategy focus on use of
technology to deliver high level of customer satisfaction in a cost
effective manner. It focussed strongly on transaction banking
services and non-funds based facilities during 2002. It enhanced
technology based delivery platform and extended web based
services. ICICI bank provides internet banking through ICICI
Market.com a finance portal that single point web based interface
for all corporate clients.
Services to NRIs:ICICI Bank has established a presence in the international market
in areas of information technology, investment banking and
product based services for NRIs. It provides various services not
only to the domestic customer but also to the foreign customer. It
provides the foreign money exchange services to its customers.

It provides international debit card to its customers with the help of

it customer need not to have money into his pocket in the foreign
country too. It transfers fund very quickly by money 2 india. Bank
offers an attractive avenue for investing funds in india either in
rupees or in foreign currency.
It provides Rupee checking A/c facility to its customers. This
account for NRIs is a good option to manage overseas as well as
indian earnings. There are two types of rupee checking accounts
first is NRE Checking account for overseas earnings and second is
NRI checking a/c for indian earnings.
It also provides money exchange facility to its customers.
Customers can exchange their money with the bank by giving him
the domestic money.

MANAGEMENT
Managed by board of directors:The Board of directors has seventeen members, which is the
maximum number of members the board can in accordance with
the article of association of the corporation. The board of directors
supports the broad principles of corporate governance. In addition
to the basic governance issued, the board lays strong emphasis on
transparency, accountability and integrity.
The board consists of eminent persons representing various
professions including finance, engineering, construction, urban
policy and development.

Board of Directors include:Mr. N. Vaghul, Chairman

Mr. Sridar Iyengar
Mr. R.K. Joshi
Mr. Lakshmi. N. Mittal
Mr. Anupam Puri
Mr. Vinod Rai
Mr. Somesh. R. Sathe
Mr. M.K.Sharma
Mr. P.M.Sinha
Prof. Marti G. Subrahmanyam
Mr. T.S.Vijayan
Mr. V.Prem watsa
Ms. Chanda Kochhar, Managing Director & CEO
Ms. Lalita D. Gupte, Joint Managing Director
Ms. Kalpana Morparia, Deputy Managing Director
Ms. Chanda Kochhar,
Dr. Nachiket Mor, Executive Director
The Boards focus is on strategy formulation, policy and
control, delegation of powers and specifying those issues which are
the boards preserve. The responsibility of the management is to
implement the strategy for the organisation that is designed to
deliver increasing value to the shareholders.
Boards are responsible for the companys performance.
Companies cannot transfer without the trust and support of their
shareholders. Management are directed towards to company
growth and company stability.
Board of directors are asked to attend meetings that
conducted by the chairman or high authorities. Salient topics are

raised during the meeting and overcome of the various problem has
obtained by the management.
Members of board are elected by the voting in the board
meeting that can be annually or according to circumstances.
members have the full discretion to represent their ideas or views
in the meeting.
In the board of director their can be director who can actively
participating in the company management or some of them are
non-active who do not play a active role in management.

RESEARCH METHODOLOGY
Research methodology is the method which is used to collect the
data. There are various method of data collection after collecting
the data, data are summarized and after compiling and
consolidating data they are adequately analyzed. And precise
conclusion is measured or enumerated. Methods of data collection
are as follows:Questionnaire: A questionnaire is filled by each customer who
visits ICICI Bank for different transactions. In this questionnaire
all the products offered by ICICI Bank were mentioned and the
customers were required to specify the products of their specific
need. The questionnaire used is given as annexure to this report.
Telephonic interviews:- I had collected the various amount of
information from different respondents on telephone by talking to
them about their needs and expectations from ICICI Bank. What
they think about ICICI Bank and what changes they want in the
services. If they have any query they are asked to come at bank
office to solve that query.
Observation Method:- I used to keenly observe the walk-ins to
the ICICI Bank. Their needs and requirements were observed by
me through their non-verbal communication, gestures and facial
impressions. On finding the specific needs, I used to interact with
them and guide them in their decision exercising about a particular
product.
Personal Contacts:- In this Method customer are personally
contacted for collecting data. This process is very time
consuming .I had contacted many person personally for gathering
information. different peoples are asked the same set of questions,
answers of that questions can be vary person to person.

DATA ANALYSIS
1.

WHICH OF THE FOLLOWING ATTR IBUTES COMPELLED YOU TO MOST OPEN

SAVING ACCOUNT IN ANY BANK?

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

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

Customer Having Bank A/ C

25
20

20

15
11
10

Customer Having Bank A/ C

8
6

0
SBI

ICICI

Axis

Hdfc

Others

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

5:-How many services offered by your banks have been Used By you?

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

7:-How would you rate product offered ICICI Bank than other?
Rating

Very Good
5

Good
4

Moderate
3

Less
2

Poor
1

SURVEY AND OBSERVATION

RESEARCH TOPIC-LOAN
DISBURSED

SANCTIONED

BUT

NOT

Competition has increased in loan providers in india. Several

banks, Housing finance companies, unorganized financiers,
property builders, housing societies, employers, etc are providing
easy finance particulary when financed money is backed by the
intangible asset like residential house. In india housing finance
considered a safe means of finance. Despite all advantages, the
competition among financiers from different sectors, with different
objectives, compel the financiers to use their resources efficiently.
Major outlay in finance companies is the cost of attracting
customers through advertisements, publicity, campaigns and
services.

Housing finance is not a black box selling. It is a process.

Customers are invited by the housing finance companies through
advertisements to avail loan facilities. Such requests are processed,
appraised and finally the loans are sanctioned.

RESEARCH METHODOLOGY
A sample size of 315 customers was taken to gather data regarding
the loan which have been sanctioned but not disbursed with the
help of direct marketing. The following profile was used to analyze
the collected data.
Profile of customers who have been sanctioned loan but not taken
disbursement.
1. File No:
2. Name :
3. Telephone No:
(Resi)
(Office)
4. Nature of employment:
5. Companys Name:
6. Designation:
7. Loan Group:
8. Sanction date:

9. Sanction Amount:
10. Type of property
JDA
Society
Housing Board
Any other
11. Reasons:
Technical
Legal
Competition
Any other reason
12. Action Taken:
13. Appraiser:
14. DSA/DSE:

MAIN REASONS OF LOAN SANCTIONED BUT

NOT DISBURSED
The reasons of loan sanctioned but not disbursed is divided into
four categories:
TECHNICAL
It includes the following reasons:
1. Construction/Extension of house has not been started.
2. Required minimum construction work was not completed.
LEGAL
It includes the following reasons:
1. Customer cannot submit the original documents.
2. Customer needed loan to make payment of regulisation
(Niyaman) but due to court case date of payment was
postponed.

3. Customer was unable to get permission of second mortgage

COMPETITION
It includes the following reasons:
1.
2.
3.
4.
5.

Amount sanctioned to customer was less than his requirement.

Processing time period was long.
Interest rates are higher.
Processing fees was very high.
Equated monthly installment ( EMI) was higher.

6. ICICI do not follow monthly reducing balance method.

Competitors to whom customers turned up

1. SBBJ
2. IDBI
3. LIC
4. SBI
5. RAJASTHAN BANK
6. STATE BANK OF INDIA
7. BIRLA HOUSE FINANCING
8. BANK OF BARODA
9. ORIENTAL BANK OF COMMERCE
10.UNION BANK OF INDIA
11.HDFC
12.PUNJAB NATIONAL BANK
13.CANFIN HOMES
ANYOTHER
It includes the following reasons:
1. No sanction letter was sent to customers.

2. In Several Cases it has been found that the customer do not

want to take disbursement due to non-suitability of terms and
conditions of the loan.
3. Customers do approach for housing loan without finanlizing
plans at their end. Sometimes either there is change in or the
plans get cancelled. Usually it has been found that this happens
due to some personal/family problems or reasons.
4. It has been observed that customer has not been issued
disbursement cheque on time.
5. In some cases, customers have expressed their dissatisfaction
towards service and cooperation by ICICI.
6. Customer has fulfilled needs from internal sources.
7. In some cases, customer was not interested to pay conversion
charges.
8. It has been observed that in some cases where loan applicant has
applied for allotment of house property to Housing
board/Society/JDA/ any other and the process did not mature or
completed. Since the basis of loan availment was absent, the
loan applicant did not avail disbursement.
9. Customer was unable to give guarantor.

GENERAL RECOMMENDATIONS
Customers should be sent sanction letter on time.
It is suggested that the customer should be informed about all
terms and conditions during initial stages.
Customers should be issued disbursement cheque on time.
There should be regular review of customer feedback and
proper appraisal be made on several service commitments to the
customers.
Processing time period should be short.
Processing fees should be reduced.
It is suggested that interest rates and equated monthly
installment(EMI) Should be low.

 ICICI should follow monthly reducing balance method.

SUGGESTIONS
1. Bank have to stop copying the western banking models and
should care to understand the local ethos and cultural back
drop. Bank has to promote innovation and creativity taking into
account local conditions. There is still a large segment of
unexplored or untapped market need of hour is market creation.
There is a need for reengineering of the systems to achieve the
targets.
2. Improving financial services in banking would yield substantial
benefits to private banks and meet the challeges of competition.
3. There is a need for well trained front line consultants at branch
level who directly deal with customers and provide information
about various products and services.
4. Problem and complaints of customers should be solved as soon
as possible.

5. Network should be increased to the rural by opening new

branches in rural areas.
6. New products for new segments based on their income should
be introduced.
7. There is need to go for aggressive marketing. A fixed
percentage of profit should be allocated for advertising and
marketing activities.
8. Man power is the back bone of any organisation. Such policies
should be adopted so as to reduce the incidence of employees
leaving the organisation.
9. A battle cry in the form of certain noble cause could be given to
infuse a sense of service to the country/society in the minds of
employees in order to keep their morale up. this will avoid
boredom with the job and businessman like relationship
between the management and employees.
10. Strategy should be to develop and refine certain products like
kid-e-bank, Bank @ campus and bonds, Mutual funds.

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

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 : _______________________________________________________
1825
2535
35 45
4555
55+

Age Group:

Occupation:
Journalist
Student
Professional
Retired Person
Technical expert
Other, please specify:
Income:
laces

1 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

+10

(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
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
(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
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?