DR.

IT BUSINESS SCHOOL

A PROJECT REPORT
ON

“What do the customers perceive about

the market linked investments & products
of ICICI Bank”
AT

ICICI BANK

SUBMITTED TO: SUBMITTED BY:

SUMMER INTERNSHIP

1
 PROJECT REPORT

ON

“What do the customers perceive about Market

linked investments & products of ICICI Bank”

IN THE PARTIAL FULFILLMENT OF THE REQUIREMENT FOR

MASTERS OF BUSINESS ADMINISTRATION

Degree Programme

Of

PUNJAB TECHNICAL UNIVERSITY

UNDER THE GUIDANCE OF:

MR. AMIT BHATIA

(ASSISTANT MANAGER)

SUBMITTEDBY:
HEMANT
MBA(MARKETING)

Acknowledgement

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This project is a culmination of task undertaken by me after the First year during my
summer Internship.

Acknowledgement is not a mere formality or ritual but a genuine opportunity to express

the indebtedness to all those without who’s active support and encouragement this
project wouldn’t have been possible. My special thanks to Mr. Amit Bhatia (Assistant
Manager, ICICI Bank) & Dr. Geetanjali Bhatnagar (Faculty Guide) who gave me the
proper guidance.

Last, but not the least, I would like to thank all others who, in one way or another have
helped me so much along the way

Hemant Kakkar
MBA(Marketing)

This is to certify that Ms.Parul Dehulia, a student of Post Graduate Degree in Masters of
Business Administration, Amity Business School, Noida has worked for the project on ”What do
the customers perceive about the Market linked investments & product offerings of ICICI
Bank” under the able guidance & supervision of Prof. Sanjeev Tandon, faculty Amity Business
School, Amity University, Noida.
3
This internship report has the requisite standard for the partial fulfilment of the Post Graduate
degree in Masters of Business Administration. To the best of our knowledge no part of this
report has been reproduced from any other report & the contents are based on original
research.

Signature Signature

Faculty Guide Student

Abstract

The project has been undertaken in a renowned bank “ICICI”. The main objective behind the
project is to know the consumer perception about the Market Risks & Investments and to get an
insight about the various product offerings of the bank. To find the various reasons because of
which the company is able to survive the edge cutting competition and what are the other
marketing strategies of the company. A survey has been done and data has been collected from

4
various customers and thus a report has been prepared. In the survey the customers were
interacted in order to find out their knowledge about the products & schemes of ICICI Bank. The
customers who were unknown about the product offerings were given information. The
knowledge about various market linked investments was given to them and it was told that how
can they invest their money to get superior returns. It was told to them to take the help of the
wealth managers of ICICI Bank in order to protect their capital.

Table of Contents

1) Introduction...................................................................................................6

5
  Company Profile……………………………………………………………..7

 Vision of the Bank…………………………………………………………...8

 History.....................................................................................................9

2) Market Strategies of ICICI Bank.................................................................11

 Universal Banking…………………………………………………………..12

 Global Market Strategy…………………………………………………….14

 Advertising Strategy……………………………………………………….15

3) Competitors.................................................................................................16

 ICICI Vs HDFC……………………………………………………………..17

 ICICI Vs Axis……………………………………………………………….18

4) Product Offerings........................................................................................20

 Alliance Products............................................................................26

 Corporate Banking……………………………………………………..28

 Transaction Banking…………………………………………………...29

 SME Banking…………………………………………………………….30

 Services…………………………………………………………………..38

 Demat Services………………………………………………………….42

 Mutual Funds…………………………………………………………….43

 Insurance Policies………………………………………………………47

 Wealth Management……………………………………………………53

 Investment Planning…………………………………………………..55

5) Objective of Research………………………………………………………....57

6) Research Methodology..............................................................................58

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7) Analysis.......................................................................................................60

 Findings & Analysis…………………………………………………...61

 Results & discussion………………………………………………….71

 Conclusion & Recommendation…………………………………….73

8) References..........................................................................................75

9) Annexure…………………………………………………………………………..76

 Questionnaire………………………………………………………………..77

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 INTRODUCTION

Introduction:

Company Profile

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ICICI Bank is India's second-largest bank with total assets of Rs. 3,634.00 billion (US$ 81
billion) at March 31, 2010 and profit after tax of Rs. 40.25 billion for the year ended on March
31, 2010. ICICI Bank is the second amongst all the companies listed on the Indian stock
exchanges in terms of free float market capitalisation. The Bank has a network of about 2,035
branches and about 5,518 ATMs in India and presence in 18 countries. 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 and affiliates in the areas of
investment banking, life and non-life insurance, venture capital and asset management or
wealth management. The Bank currently has its subsidiaries in the United Kingdom, Russia and
Canada, branches in Unites 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. The bank’s UK subsidiary has
established branches in Belgium and Germany.

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

Vision of ICICI Bank:

9
Over the last few years, the ICICI Bank has taken rapid strides in developing new businesses in
line with its proposition to offer complete financial services to both corporate and retail
customers.
10
With the recent addition of insurance, the proposition of ICICI Bank is now fulfilled. Going
forward, the challenge for ICICI will be to continue innovating to improve market shares and
maintain its competitive edge. In this endeavour, ICICI will continue to benchmark with global
best practices to ensure optimum utilization of its resources and the finest exposure to its work
force. The speed with which it has been able to transform the organization and successfully
start so many new businesses is almost singularly owing to the skills, enterprise and the depth
of its human resources.

ICICI Bank is committed to enriching this valuable resource which in turn, will allow it to bring
innovative practices to the world of financial services in India. With technology playing the key
role mainly.

The vision is to develop ICICI Bank into an organization that is empowered by bright and
talented individuals, working in teams and riding on the backbone of world class technology.

History

The 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 year 1998, an equity offering in the form of
ADRs listed on the NYSE in fiscal year 2000, ICICI Bank's acquisition of Bank of Madura
Limited in an all-stock amalgamation in fiscal year 2001, and secondary market sales by ICICI
11
to institutional investors in fiscal year 2001 and fiscal year 2002. ICICI was formed in year 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
the medium-term and long-term project financing to Indian businesses. In the 1990s, the ICICI
transformed its business from a development financial institution offering only single 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, the
ICICI become the first Indian company and the first bank or financial institution from non-Japan
Asia to be listed on the New York Stock Exchange (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
scenario, the managements of the ICICI and ICICI Bank formed the view that the merger of
ICICI with ICICI Bank would be the optimal strategic alternative for both of the entities, and
would create the optimal legal structure for the ICICI group's universal banking strategy. The
merger would enhance value for the ICICI shareholders through the merged entity's access to
low-cost deposits, much 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 the 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 the ICICI and its number of
subsidiaries. In October 2001, the Boards of Directors of the ICICI and ICICI Bank approved the
merger of ICICI and two of its wholly owned retail finance subsidiaries, the ICICI Personal
Financial Services Limited and the ICICI Capital Services Limited, with the ICICI Bank. The
merger was approved by shareholders of the ICICI and ICICI Bank in January 2002, by the High
Court of Gujarat at Ahmadabad 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 the wholesale and retail, have been integrated in a
single i.e. the ICICI Bank.

12
 MARKETING STRATEGIES

Market Strategy of ICICI Bank:

ICICI Bank uses the concept of Universal Banking.

13
Universal Banking Concept:

In universal banking, large banks operate extensively in networks of branches, provide many
different services, hold several claims on firms (including equity and debt), and participate
directly in the corporate governance of firms that rely on the banks for funding or as insurance
underwriters. It means the ability to offer i.e. sell and underwrite all the types of products and
services to any set of clients, either through a single or through a group of companies. The
practice of Universal Banking varies across several countries. India faces a very high regulatory
burden although now a conglomerate structure of the universal banking has already been
permitted .Many international players like ABN-AMRO, Citigroup, HSBC, Deutsche Bank, JP
Morgan Chase, Lehman Brothers have realized the benefits of Universal Banking. The ICICI
Bank has also joined these international players. The ICICI Bank functions as a universal bank
through itself and its associate companies in the areas of corporate finance, commercial
banking, personal banking, investment banking, asset management, investor services and
insurance. The Universal Banking provides competitive advantage in the current scenario
through large product suite, diversified resource base, Economies of scale and scope,
Optimization of human and financial capital.

In a span of just four years, the ICICI Bank has emerged as a consumer banking behemoth.
With a retail book of over Rs 56,000 crores (Rs 560 billion) and a market share that is the envy
of competition -- it has a share of over 30 per cent – The ICICI Bank today has reached a
commanding position.

The bank boasts of the widest integrated technology platform in the country and only a fourth of
its business takes place at its branches and subsidiaries.

Its legacy of non-performing assets (NPAs) -- for which it has been rated below its peers earlier
-- is now almost history with net NPLs (non-performing loans) down to 2 per cent.

Armed with a much stronger balance sheet, the ICICI Bank is aggressively foraying into
overseas markets and also has an eye on the rural India.

Rural India is an opportunity, somewhat premature, but in the next 12-18 months the bank’s
strategy will be seen there. Bank is looking at new agri lending as something that is directed; it's
a viable business proposition, but it has to be driven very carefully. The bank can't have
branches there because that is not workable in terms of costs.

The solution to this problem is to partner with the micro-credit institutions, corporate providing
inputs or buying products from the farmer and self-help groups.

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Major Steps Taken:

In 2001 ICICI acquired the Bank of Madura (est. In 1943). The Bank of Madura was a Chettiar
bank, and had acquired the Chettinad Mercantile Bank (est. In 1933) and the Illanji Bank (est. in
1904) in the 1960s.

In 2007 ICICI amalgamated the Sangli Bank, which was headquartered in Sangli, in
Maharashtra State, and which had 158 branches in Maharashtra state and another 31 in
Karnataka State. ICICI also received permission from the government of Qatar to open a branch
in Doha and from the US Federal Reserve to open a branch in New York city. ICICI Bank
Eurasia opened a second branch in St. Petersburg.

In 2008 the ICICI Bank launched iMobile, a comprehensive Mobile banking solution. iMobile is
considered to be a breakthrough innovation in the Indian Banking which allows a customer to do
all possible transactions through a GPRS-enabled mobile phone easily and conveniently.

Global Market Strategy:

The global opportunity spectrum is changing dramatically, and in the next three years, the
bank’s global business will contribute one-third of the book top line and bottom-line. Today it's
about only 10-12 per cent. The NRI (people living abroad) is a great customer and the other is

15
the Indian corporate who is globalising -- either in the trade business or is setting up businesses
abroad.

Bank’s USP (unique selling proposition) is a unique technology; it can get customers to talk to
his constituents online. The NRI is an interesting link because today he has tremendous needs
in India; he wants to remit money, purchase a commodity, buy a home, especially the H1 visa
guys. This year 10 per cent of the home loans will be lended to NRIs.

In the United Kingdom the ICICI bank have a partnership with Lloyds Bank and are present in
30 branches there, promoting joint products, and they get new customers.

In the United States the ICICI bank have a tie-up with Wells Fargo and their customers can start
a remittance into India from any channel.

Advertising Strategy:

Amitabh Bachchan as brand ambassador of ICICI:

16
Under the agreement, Mr. Amitabh Bachchan endorsed and promoted all the products and
services offered by ICICI and its Group companies for a period of two years.
During his term as the brand ambassador, he played a key role in all major brand and product
communication by ICICI. He endorsed the ICICI brand through corporate and product
campaigns on television, print and outdoor medium. Mr. Bachchan also participated in select
events such as new product launches, various campaigns, and customer reward programmes
etc.

ShahRukh Khan as global brand ambassador of ICICI:

After Mr. Bachchan the ICICI Bank has decided to resort to the celebrity endorsement route to
promote its brand. Almost two-and-a-half years since superstar Amitabh Bachchan endorsed
the ICICI brand, the company has signed up Shah Rukh Khan as its global ambassador. Shah
Rukh Khan whose increasing global popularity gives synergy to the growing global presence of
ICICI Bank.

Shahrukh Khan is a truly global Indian who embodies the Indian winning spirit in a true sense.
The energy and innovation which Shahrukh Khan represents coupled with his popularity both in
India and abroad make him the ideal choice for the ICICI Bank, particularly as the Bank makes
its global forays. Within a short span of four years, the ICICI Bank has established its presence
in 12 countries including UK, Canada, US and the Middle East.

17
 COMPETITORS

Competitors of ICICI Bank:

Its nearest competitors in the private banking sector are HDFC Bank and AXIS (UTI) Bank.

18
As compared to ICICI Bank HDFC is frenetically seeking to shrug off the image of being a one-
product company (home loans), by using synergies that exist with its bank to foray into various
areas like e-broking, mutual funds, and insurance. For ICICI Bank, it is imperative that it moves
away from the high-risk, low-return business of project finance.

Universal Banking, ICICI Style

ICICI: Bonds, loans, corporate finance, and ICICI Web Trade: Online stock trading
infrastructure finance.
ICICI Bank: Retail and corporate banking, ICICI Home: Housing finance
and cash management
ICICI Capital: Financial products marketing ICICI Securities: I-Banking, corporate
and distribution finance, and advisory
ICICI Prudential: Life Insurance joint ICICI Brokerage: Broking and equity
venture research
ICICI Lombard: General Insurance joint ICICI Venture: Private equity investments
venture
ICICI Infotech: Software solutions and IT- ICICI Kinfra: Infrastructure financing in
enabled services Kerala
ICICI Personal Financial Services: Retail ICICI Winfra: Infrastructure financing in West
loan distribution Bengal
ICICI International: Offshore investment ICICI Knowledge Park: Infrastructure and
and fund management support facilities

ICICI is still puny when compared to HDFC but the objective is very clear : grow the business,
even if it has come at HDFC's cost. ICICI maintains that they got into home loans simply
because it's one of the safest businesses to be in, given the low default rates. ''Besides, the
market is growing and there's space for all those who wants to enter.

HDFC Bank:

The HDFC House

HDFC Housing finance
HDFC Asset Mutual funds
Management
HDFC Reality Online property solutions (JV with
Mahindra’s)
HDFC Standard Life insurance joint venture
Life
HDFC Securities Internet and phone broking

Gruh Finance Home loans

19 for repair and
reconstruction
AXIS Bank:

In the case of Axis Bank, retail loans have declined from 30 per cent of the total loan book of Rs
25,800 crores in June 2006 to around 23 per cent of loan book of Rs.41,280 crore (as of June
2007). Even over a longer period, while the overall asset growth for Axis Bank has been quite
high and has matched that of the other banks, retail exposures grew at a much slower pace.

Why ICICI Bank Leads:

ICICI bank envisaged retail banking as a key area of strategic emphasis for it — with the share
of the retail business (both on the funding and asset sides) growing strongly year after year—
the share of retail business, particularly retail assets.

It appears to be following a business strategy that is quite different from the high-volume and
commodity-style approach of AXIS Bank and HDFC Bank. That strategy also has its pluses in
terms of the relatively higher margins in some segments of the retail business and the in-built
credit risk diversification (and mitigation) achieved through a widely dispersed retail credit
portfolio. ICICI Bank has been able to maintain the quality of its loan portfolio for a decent time
period now.

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Product Offerings

21
1) DEPOSITS

ICICI Bank offers wide variety of Deposit Products to suit the requirements of the
customers. Convenience of networked branches/ ATMs and facility of E-channels like
Internet and Mobile Banking.

a) Savings Account : A Savings Account for everyone with a host of convenient

features and banking channels to transact through. So now people can bank at
their convenience, without the stress of waiting in queues. ICICI service savings
accounts with 8 to 8 banking and ‘out of branch’ banking.

b) Life Plus Senior Citizens Savings Account :

ICICI Bank understand that a Savings Account needs to do more after people
reach the age of seniority; the bank understand customers concerns for safety and
security. The bank has an ideal Savings Bank Service for those who are 60 years
and above. The Senior Citizen Services from ICICI Bank has several advantages
that are tailored to bring more convenience and enjoyment in their life.

c) Young Stars Savings Account :

It's really important to help children learn the value of finances and money
management at an early age. Banking is a serious business, but ICICI make
banking a pleasure and at the same time fun. Children learn how to manage their
personal finances.

d) Fixed Deposits :

ICICI provides Safety, Flexibility, Liquidity and Returns in the case of fixed deposits.

A combination of unbeatable features of the Fixed Deposit from ICICI Bank.

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 e) Recurring Deposits

When expenses are high, people may not have adequate funds to make big
investments. An ICICI Bank Recurring Deposit lets the customers invest small
amounts of money every month that ends up with a large saving on maturity. So the
customers enjoy twin advantages- affordability and higher earnings.

f) Easy Receive Savings Account :

Easy receive account is a unique savings account that caters to domestic banking
needs, while offering additional benefits for remittances received in the account
from abroad.

2) 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 customer’s doorstep.

a) Home Loans:

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.

b) Personal Loans:

If customers wants personal loan that's easy to get with the help of ICICI Bank. ICICI
Bank Personal Loans are easy to get and absolutely hassle free. With minimum
documentation people can now secure a loan for an amount up to Rs. 15 lakhs.

c) Car Loans:

ICICI Bank is the No. 1 financier for car loans in the country. It has network of more
than 2500 channel partners in over 1000 locations. It has tie-ups with all leading
automobile manufacturers to ensure the best deals. A number of flexible schemes &
quick processing are available. Hassle-free application process is available on the click
of a mouse.

d) Commercial Vehicle Loans:

Range of services on existing loans & extended products like funding of new vehicles,
refinance on used vehicles, balance transfer on high cost loans, top up on existing
loans, extend product, working capital loans & other banking products.

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Two Wheeler Loans

Customers can avail attractive schemes at competitive interest rates from the No 1 Financier for
Two Wheeler Loans in the country. There is finance facility up to 90% of the On Road Cost of
the vehicle, repayable in convenient repayment options and comfortable tenors from 6 months
to 36 months.

e) Farm Equipment Loans:

ICICI is the preferred financier for almost all leading tractor manufacturers in the
country. There is flexible repayment options in tandem with the farmer's seasonal
liquidity. They can choose from Monthly, Quarterly and Half-yearly repayment patterns.
There are comfortable repayment tenures from 1 year to 9 years.

f) Business Instalment Loans:

Business Instalment Loan (BIL) by ICICI Bank helps the entities take giant strides by
fulfilling their business requirements, be it working capital requirement, business
expansion or to grab that once in a lifetime business opportunity.

3) CARDS:

ICICI Bank offers a variety of cards to suit different transactional needs of its customers. Its
range includes Credit Cards, Debit Cards and Prepaid cards. These cards offer customers
convenience for their financial transactions like cash withdrawal, shopping and travel. These
cards are widely accepted both in India and abroad.

a)Credit Cards:

Credit Cards give customers a smart way to shop, and offer them flexibility and convenience in
managing their finances. ICICI Bank credit cards provide a host of exciting offers and benefits
to the customers such as low interest rates, rewards programs, and a high credit and cash limit.
The bank offer different types of credit cards to suit the different needs and requirements for
added features

b) Travel Cards:
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The traveller’s card is the Hassle Free way to Travel the world. Customers travelling with US
Dollar, Euro, Pound Sterling or Swiss Francs; Looking for security and convenience; can opt for
ICICI Bank Travel Card. It is issued in duplicate. It offers Pin based security and has the
convenience of usage of Credit or Debit card.

Alliance Products:

1) Wells Fargo, USA

ICICI Bank has joined hands with Wells Fargo to bring customers unprecedented convenience
for sending money to India. Customers can just call or walk into any Wells Fargo branch and
send money to anyone having an eligible ICICI bank account.

Customers just need to enrol in the Wells Fargo Express Send Global Remittance Service to
India to be able to transfer money from your eligible Wells Fargo checking or savings account to
the beneficiary's ICICI bank account. Client’s transferred funds will be available in the
beneficiary's ICICI bank account as soon as the next business day.

To avail of this economical, convenient and dependable way to send money home to India, just
open a Wells Fargo Express Send Service Agreement and ensure that the beneficiary has an
eligible account with ICICI bank.

Benefits

a) Fast – The money will reach India in a day’s time

b) Convenient – Customer get 24-hour access to Wells Fargo branches and telephone banking
services across the USA

c) Nominal charges – Flat fee of as low as $5 to send up to $3,000 per day. Customer may
even be eligible for a waiver of this fee based on the account relationship with Wells Fargo.

d) No monthly or annual service fees or setup fee for the Wells Fargo Express Send Service

e) Competitive exchange rates – The customer can get the latest rates by calling Wells Fargo
at 1-800-556-0605.

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2) Lloyds TSB - India Banking Service

India Banking Service is collaboration between ICICI Bank and Lloyds TSB, offering people of
Indian origin living in the UK access to a wide network of branches and ATMs across India and
the UK. Customers can now manage their accounts in the UK and India from a single,
convenient location.

a) Convenience of opening ICICI Bank NRE Accounts at participating Lloyds TSB

branches.

b) Access to the ICICI Bank account to family members in India

c) Easy Money Transfers at nominal costs

d) Fast transactions - within 4 working days

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Corporate Banking:

ICICI Bank offer corporate 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, ICICI bank
provide the customers with end-to-end services for all your banking needs. The result is an
overall financial solution for the company that helps customers accomplishes their objectives.

1) ICICI Bank can guide people through the universe of strategic alternatives - from
identifying potential merger or acquisition targets to realigning their business' capital
structure.

2) 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.

3) 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.

4) ICICI bank offer the customers global services through their correspondent banking
relationship with 950 foreign banks and maintain a NOSTRO account in 19
currencies to Service people better and have strong ties with the neighbouring
countries.

5) ICICI Bank is the leading collecting bankers to Public & Private Placement/ Mutual
Funds/ Capital Gains Bonds issues. Besides, the bank have products specially
designed for the financial intermediaries to meet their unique requirements.

27
 6) ICICI support customer’s international business by meeting working capital
requirements of export and import financing. The Bank also has a host of non-funded
services for their clients.

7) Whatever customer’s industry, size or financial requirements, ICICI Bank has the
expertise and the solutions to partner them all the way.

Transaction Banking

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

Loan Syndication

The bank ensures 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.

Sell Down

ICICI Bank is a market leader in the securitisation and asset sell-down market.
From its portfolio, it offers different products to its clients in this segment. The products are:

• Asset-Backed Securities (ABS).

• Mortgage-Backed Securities (MBS).
28
 • 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.

Financial Institution:

ICICI Bank services the financial sector for the entire set of banking requirements and provides
a complete range of solutions. The Financial Institutions and Syndication Group (FISG) are
responsible for ICICI Bank's relationship with the financial sector.

Under this umbrella, the Bank caters exclusively to the needs of:

1) Different domestic financial Institutions

2) Banks
3) Insurance Companies
4) Mutual Funds
5) Fund Accounting

The FISG has built strong relationships through various interactive measures, like seminars,
training programs, sharing of market information and views with clients, organizing the Bank
CEOs' Forum, etc.

Government Sector:

29
The Bank aim to leverage their superior technology platform and on their ability to deliver
solutions customized to meet the specific needs of each client to emerge as the preferred
banker for all government departments and government corporations.

Services to the Government Sector:

ICICI Bank acts as bankers to several government organisations. They have a wide range of
services designed to serve the government sector. Their dedicated relationship managers have
the requisite experience and training to look after their unique needs.

SME BANKING:

Client’s business now has end to end solutions on which one can depend. From the anytime
anywhere convenience of Roaming Current Account to forex remittance services that simplify
and speed up the business.

30
Current Account:

Roaming Current Account:

With the Roaming Current Account (RCA), customers can enjoy the convenience of Anytime
Anywhere banking. They can operate their RCA from any ICICI Bank branch in any city. RCA
offers a wide range of variants that include:

• Standard
• Classic
• Premium
• Gold
• Gold Plus
• Platinum

These variants are based on committed Quarterly Average Balance with differential charges
applicable to each variant. Customers can choose the variant most suitable for their business
requirements. They even have the flexibility of changing their current account variant every
quarter based on their changing business needs. It also offers the facilities of International
Business Banking Debit Card, Internet Banking, Phone Banking, E-mail Banking & Mobile
Banking.

Accounts for businesses, big and small

The business needs and requirements are unique. This is why customer’s account should be
unique too. ICICI Bank offers people a range of RCAs to meet varying banking requirements.

Quarterly Average
Account
Balance Requirement
Standard Rs.10,000
Classic Rs.25,000
Premium Rs.50,000
Gold Rs.1,00,000
Gold Plus Rs.3,00,000
Platinum Rs.5,00,000

Anywhere cheque, national reaches:

31
Issue a cheque from customer’s place of business. The suppliers can encash it at over 249
centres all over India. When the cheque is `local' everywhere, the business goes national!

Bank anytime anywhere.

Customer’s always had one bank branch. Now every ICICI Bank branch becomes people’s
branch. Every branch manager is the personal manager. People can get personal attention
wherever their business takes them.

Better cash flows.

ICICI ask the customer’s to deposit the cheques at the nearest ICICI Bank Branch, and they will
see to it that the cheque reflects in customer’s account fast. The bank helps customer’s money
work harder for them.

Banking on call.

Banking has never been so convenient before. Now customers can use the phone to make
Balance Enquiries, Request for a Cheque Book, Stop Payment and more.

Corporate Internet Banking.

Customers can do all the banking they want without getting up from their chair. With ICICI
Bank's Internet Banking customers can access their account from wherever they are, by logging
in to their account at www.icicibank.com. The customers can check their balance, pay their bills,
transfer funds or even pay their taxes sitting at their desk.

Card Power.

For customer’s convenience, ICICI Bank's RCA comes with a powerful Debit/ATM card that
allows the customers to deposit and withdraw cash at over 2000 ICICI Bank ATMs, plus over
10,000 VISA ATMs. The customers can also check their balance, view mini account statement,
and transacts at various 90,000 merchant establishments across the country.

Mobile Banking.

Now the entire customer’s need to keep in touch with their account through their mobile. Sign up
for alerts on daily balance, cheque clearing alerts or bounced cheque alerts!

Card-to-Card Transfer

32
Transfer funds for free from the customer’s existing ICICI Bank account to any Visa Card (debit
or credit) in India. They can even pay their Visa credit card bill through this facility available on
www.icicibank.com

Free daily email statement

Customers can get a daily email detailing their ICICI Bank current account transactions and
balance. Sub scribal to this service is free.

Business Loans:

Money, just when customer needs it

As a growing entrepreneur, ICICI know how valuable time is for people. People are constantly
thinking of growth and managing their business. At ICICI Bank, they think of the same when it
comes to customer’s business. ICICI’s Smart Business Loan is the easy access to money.
Customers can get up to Rs. 25 lacks as an Overdraft or a Business Instalment Loan with no
collaterals and faster turnaround time.

Overdraft:

Easy Access Money

• Working capital as Overdraft facility

• Validity of 12 months
• Interest to be levied on the amount utilized
• Enjoy the flexibility to pay a minimum amount every month
• Interest Rate (IBAR + Cash Credit Premia + 2.75% )
• Processing Fees of 2.5%

Business Instalment Loan:

Seize growth opportunities

• Credit facility in the form of Term Loan / Business Instalment Loan

33
 • Payment in the form of equated monthly instalments
• Repayment tenure of 12-36 months
• Plan and control your cash flows--
• Interest Rate (IBAR + Term Premia + 3.5%)*
• Processing Fees of 2.5%

Advantages:

• Faster loan sanctions with minimum documentation

• One stop solution with a bouquet of products
• Attractive rate of interest
• Query resolution at local branches

Other benefits:

• Facility to deposit cash in the current account**

• Online repayment facility**
• Availability of local cheques
• Flexibility to open accounts at local branches

Eligibility:

• Income Tax Payee

• Good business track record
• Comfortable business vintage

Working Capital Finance:

Managing finance is arguably the most important component of any business. Two key business
needs are access to funds at reduced, more competitive rates and managing the balance sheet
as effectively as possible.

ICICI Bank has a team of experienced customer-focused relationship managers with wide
sector experience who can offer customers working capital finance by way of cash
credit/working capital demand loans suitably structured to their needs and their risk profile. Non
fund based facilities such as bank guarantees and Letter of Credit are also offered at
competitive rates. The bank also facilitates working capital finance with other products such as
trade finance, forex, derivatives and cash management.

Office Equipment Loans:

34
Technological empowerment is an important and critical factor for the growth of small and
medium enterprises (SME). SMEs need to invest in sophisticated and state of the art office
equipment to increase productivity and efficiency. Considering these varied requirements of our
SME customers, the bank have created ICICI Bank's Office Equipment Financing product as a
convenient and hassle-free way to procure the equipment they need. The simplified procedures
and minimum documentation ensures fast and easy funds.

Office equipment financing product features include:

1) Loan amount (minimum) is Rs 30000 onwards.

2) Loan to value (LTV) is up to 80% of invoice value.

3) Tenure of 12 to 36 months

4) Equipment to be hypothecated to ICICI Bank till the time loan is repaid.

5) Flexible repayment option through post dated cheques and auto debit
mandate.

6) Door step service.

7) Competitive rates.

Office Equipment Loans are available to:

1) Proprietors

2) Partnership Firms

3) Companies

4) Trust & Societies

ICICI provide loan for almost all office equipment including:

o IT products like personal computers, laptops, servers, switches.

o Copiers, scanners and multi functional devices.

35
 o Printers (digital, low and high-end, wide format printers), plotters.

o Gensets, inverters, UPS.

o Colour labs.

o Air conditioners, plasmas, projectors, EPABX

Trade:

Letter of credit:

The companies customers do business with undoubtedly have impeccable credentials. But why
to take a chance. ICICI Bank’s Letter of Credit facility arms clients with a guarantee of payment,
especially useful while transacting with companies who they have had limited exposure to in the
past.

A Letter of Credit is a letter from ICICI Bank guaranteeing that a buyer's payment to a seller will
be received on time and for the correct amount. This guarantee of payment helps clients to
transact with companies with whom they have had limited interaction and are unsure of their
credit history.

ICICI Bank offers two types of LCs, Sight and Usance LCs, both inland and foreign. The bank’s
LCs get sanctioned and issued quickly, and are competitively priced.

A sight LC is a letter of credit that is payable immediately on presentation along with the
necessary documents.

A usance LC is a letter of credit that is payable after acceptance of presented documents and at
a specified future date.

An ICICI Bank Letter of Credit offers following:

o A limit per client of up to Rs.1 crore (Limit for usance L/- Rs.50 Lakhs).

o Period of up to 180 days

o Security requirement.

36
 o 25%-35% cash margin.

o 100% collateral security in the form of residential.

o First charge on current assets.

o Assessment based on a parameterised model

Bank Guarantee:

Our Bank Guarantees are competitively priced with few requirements like cash margin and
collateral security, and will be made available to customers in the shortest possible time. There
is an upper limit of up to Rs.1 crore with a tenure of guarantee of up to 18 months, and security
requirement of 25% cash margin and 100% collateral security in the form of residential property
or liquid securities.

ICICI Bank also issues Bank Guarantees in foreign currency on behalf of our exporters for
approved purposes as defined under FEMA, subject to availability of credit limits or against
100% cash margin.

37
Services:

ICICI Bank offers products and services tailored to meet customer’s industry's unique needs.

1) Automotive:

The automotive sector in India is booming as Indians take to cars and two-wheelers like never
before. The world’s biggest brands are already here, with many more to follow. India is also fast
becoming an important manufacturing hub for the major players in the world.

Recognising the unique needs of automotive & auto component manufacturers, ICICI Bank has
set up a team of automotive specialists who can tailor-make a solution that suits customer’s
business.

The bank’s long-term relationships with leading auto-manufacturers ensure customers get the
quickest turnaround times possible, with the network of more than over 600 branches and 1800
ATMs giving them 24/7 accessibility. A single-window access to all the banking solutions
customers may need ensures quick approvals and minimal paperwork. ICICI’s modern
approach to business banking backed by their superior technology helps provide swift anytime,
anywhere banking services via our branch/ATM network, phone, mobile and Internet.

With a Relationship Manager always at customer’s beck and call, there will be nothing to stop
customer’s business from speeding ahead.

2) Construction:

38
The Indian economy is growing at a rapid pace. Predictably, the construction sector estimated
at Rs. 3, 00,000 crores is booming as well, be it infrastructure or commercial retail and
residential space. An outlay of over Rs. 18, 00,000 crores is projected over the next 10 years.

ICICI Bank has pulled out all stops to ensure customers get all the financial support they need
to take advantage of the opportunities and face the unique challenges in this sector. The bank’s
in-house construction industry specialists will customize end-to-end solutions for customer’s
right from the bidding process and implementation of the project through to the defect liability
period. These range from Performance & Financial Guarantees to term loans for Equipment
Financing & working capital facilities to buy raw materials.

ICICI’s modern approach to business banking backed by our superior technology helps provide
swift anytime, anywhere banking services via the branch/ATM network, phone, mobile and
Internet. Whether customers are a small contractor striving to grow, or an established player
seeking to grow globally, ICICI Bank provides the foundation to grow their business.

3) Pharmaceuticals:

Whether it's the challenges of Schedule M or awareness of best practices, nobody understands
the fundamental issues of the pharma business better than customers. Except, perhaps, ICICI
Bank.

Recognising the need to stay abreast of the latest developments in this rapidly evolving sector,
the bank’s team of pharma specialists bring to the table just the expertise customer’s business
needs. Whether customers are involved with formulations or APIs – for local or global markets,
what customers get is a potent mixture of industry understanding backed by working capital
facilities, forex services and special lending programs customised for you.

It is a platform to provide value to the pharmaceutical manufacturing customers of ICICI Bank

through focus, innovation and sharing. The bank’s modern approach to business banking
backed by their superior technology helps provide swift anytime, anywhere banking services via
their branch/ATM network, phone, mobile and Internet.

4) Apparels:

The export quota regime has been dismantled ushering in an era of open competition. China
may be the leader by far in terms of sheer volume. But there are plenty of value opportunities
both as a mass manufacturer and as a leading player in the value-added premium segments.
Many Indian suppliers are already modernizing and diversifying their operations to meet
pressures of scale and speed of delivery.

39
The Indian domestic market too is witnessing a huge transformation and growth in organized
retail space across malls, departmental stores and premium boutiques. Customers are brand-
hungry and ready to pay premiums to make lifestyle and personal statements. New players are
emerging in regional and national markets.

ICICI Bank is geared to meet customers’ requirements in the apparel sector through strong
solutions for all their needs:

1) Term loans in rupee and foreign currency with TUFS benefits for financing of expansion
and modernisation plans.

2) Competitively priced working capital and other products (including export finance in
foreign currency) in order to optimise costs of lending.

3) Sophisticated derivative product delivered in a simplified and convenient manner as a

source of hedging and optimising profits.

Finally, ICICI Bank has cut down approval time by standardising the assessment process
through use of scoring models.

5) Transport:

Indian road transport industry is witnessing a sea-change. Infrastructure investments in

highways and ports, entry of professional 'outsourced' logistics service companies in the
corporate sector, introduction of tracking technology, better quality and more choice of vehicles -
all this is opening up new opportunities and challenges.

The growth of domestic tourism and migration is leading to increase in travel while the growth of
connectivity is creating new paths of commerce and business.

ICICI Bank offers those in the transport business a host of advantages. From faster sanction
due to parameters-based approach, to interest cost savings according to usage. A Relationship
Manager is the single point contact for all customers needs.

ICICI Bank's Roaming Current Account makes a powerful difference to customer’s business.
Bank and withdraw money in any branch or ATM across the country. Bank anytime from 8 a.m.
to 8 p.m. at any of the branches. It helps in transferring funds without a cheque or a DD, through
a phone call or through Internet Banking. It uses the cash management services for collections
and payments across the country.

6) Gems & Jewellery:

40
The Gems & Jewellery industry in India is witnessing downstream integration into the retail
space, alliance marketing with end customers in the export arena, and overall dynamic growth
in domestic and international markets, across the B2B and B2C space.

ICICI Bank has been serving firms in gems and jewellery sector with comprehensive services
and in-depth expertise.

ICICI have a range of credit facilities and derivative products at competitive rates. The bank’s
Gems and Jewellery experts know exactly the customer’s business needs. Or, if it's
convenience customer’s require, bank’s vast network of branches and ATMs are just the thing
for the customers. Additionally, ICICI Bank's international experience and expertise in the global
jewellery trade gives customers the most complete forex products and advisory services you
need to stay ahead of competition.

7) Travel & Tourism:

ICICI Bank’s industry-specific solutions help customer leverage every opportunity for growth and
maximize their profits. Bank’s team of industry experts customizes solutions designed to fit
customer’s unique business requirements. Customer’s leverage the ‘anytime anywhere’
business banking advantage to manage their finances efficiently and easily. With the national
reach and global network, the bank can now take the business places.

Industry solutions

Funding solutions for Hotels, Travel & Tourism sector: ICICI provide project finance in the form
of term loans or working capital against card receivables. Rapid Travellers Cheque Program:
The bank purchase TC's from Money Changers on prefixed transaction exposure/volume.
Special Foreign Currency Tour Operators Account: The bank handle collections of foreign
currency and remittances from the outbound tour operators and inward remittances, for hotels
and tour reservation made abroad. Derivatives for Risk Mitigation: ICICI help customers hedge
the foreign currency inward remittances and local currency outward remittances through our
forex services.

ICICI’s customers include

Hotels
Aviation Training Institutes
Money Changers
Tour Operators

41
Ticketing Agents Consolidators
Travel Vocational Training Institutes
Travel Portals

8) Educational Institutions:

Whether the customer’s companies are govt. aided or privately managed, in primary, secondary
or higher education, they need a bank that understands your special needs.

Be it long-term loans for infrastructure expansion or cash credit, ICICI Bank works with
accredited & recognized educational institutions all over India, and offers the clients some of the
best options for growth and expansions.

DEMAT SERVICES:

Demat Services

ICICI Bank Demat Services boasts of an ever-growing customer base of over 11.5 lacs account
holders. In ICICI’s continuous endeavour to offer best of the class services to the customers the
bank offer the following features:

E-Instructions: Customers can transfer securities 24 hours a day, 7 days a week through
Internet & Interactive Voice Response (IVR) at a lower cost. Now with "Speak to transfer",
customer can also transfer or pledge instructions through our customer care officer.

Consolidation Demat Account: Customers can dematerialise the physical shares in various
holding patterns and consolidate all such scattered holdings into the primary demat account at
reduced cost.

Digitally Signed Statement: Customers can receive the account statement and bill by email.

Corporate Benefit Tracking: Customers can track the dividend, interest, bonus through the
account statement.

Mobile Request: Customers can access the demat account by sending SMS to enquire about
Holdings, Transactions, Bill & ISIN details.

Mobile Alerts: Customers can receive SMS alerts for all debits/credits as well as for any
request which cannot be processed.

42
 1) Dedicated customer care executives specially trained at the bank’s call centre, to
handle all their queries.
2) Countrywide network of over 235 branches, customers are never far from an ICICI Bank
Demat Services outlet.

Mutual Funds:

A Mutual Fund is a trust that pools the savings of a number of investors who share a common
financial goal. The money thus collected is then invested in capital market instruments such as
shares, debentures and other securities. The income earned through these investments and the
capital appreciation realised are shared by its unit holders in proportion to the number of units
owned by them. Thus a Mutual Fund is the most suitable investment for the common man as it
offers an opportunity to invest in a diversified, professionally managed basket of securities at a
relatively low cost. The flow chart below describes broadly the working of a mutual fund:

There are many entities involved and the diagram below illustrates the organisational set up of a
mutual fund:

43
Domestic Mutual Funds

Mutual Funds pool money of various investors to purchase a wide variety of securities while
pursuing a specific goal. Selection of Securities for the purpose is done by specialists from the
field. Returns generated are distributed to the Investors. At ICICI Bank NRI services, they help
the customers to determine which types of funds customers need to meet their investment
goals.

This may include the following types of funds:

1. Debt: Liquid schemes, Income schemes, Monthly Income Schemes etc.

2. Equity: Diversified Equity Schemes, Sector Schemes, Index Schemes etc.

3. Hybrid Funds: Balanced Schemes, Special Schemes - Pension Schemes, Child

education Schemes etc.

The wealth manager helps people to identify an appropriate mix of Mutual Fund
schemes for their portfolio using asset allocation strategies. People can invest in
various schemes of multiple mutual funds with decent performance record.

Why to Invest?

1) Professional Money Management and Research: Mutual funds are managed by

professional fund managers who regularly monitor market trends and economic
trends for taking investment decisions. They also have dedicated research

44
 professionals working with them who make an in depth study of the investment
option to take an informed decision.

2) Risk Diversification: Diversification reduces risk contained in a portfolio by

spreading it. It is about not putting all the eggs in one basket. As mutual funds have
huge corpuses to invest in, one can be part of a large and well-diversified portfolio
with very little investment.

3) Convenience: With features like dematerialized account statements, easy

subscription and redemption processes, availability of NAVs and performance
details through journals, newspapers and updates and lot more; Mutual Funds are
sure a convenient way of investing.

4) Liquidity: One of the greatest advantages of Mutual Fund investment is liquidity.

Open-ended funds provide option to redeem on demand, which is extremely
beneficial especially during rising or falling Markets.

5) Reduction in Costs: Mutual funds have a pool of money that they have to invest.
So they are often involved in buying and selling of large amounts of securities that
will cost much lower than when customers invest on their own.

6) Tax Advantages: Investment in mutual funds also enjoys several tax advantages.
Dividends from Mutual Funds are tax-free in the hands of the investor (This
however depends upon changes in Finance Act). Also, capital gain accrued from
mutual funds investments for period of over one year is treated as long term capital
appreciation and is taxed at a lower rate of 10% without benefit of indexation or
20% with benefit of indexation.

7) Other Advantages: Indian Mutual fund industry also presents several other
benefits to the investor like: transparency - as funds have to make full disclosure of
investments on a periodic basis, flexibility in terms of needs based choices, very
well regulated by SEBI with very strict compliance requirements to investor friendly
norms.

Where to Invest? :

ICICI Bank has tied up with several Mutual Funds so as to provide customers the convenience
of Varied Investment.

People have a choice to invest with the top 17 AMCs in India offering around 300 schemes.

45
Advantages of Mutual Funds:

The advantages of investing in a Mutual Fund are:

 Professional Management
 Diversification
 Convenient Administration
 Return Potential
 Low Costs
 Liquidity
 Transparency
 Flexibility
 Choice of schemes
 Tax benefits
 Well regulated

46
Insurance

1) LIFE INSURANCE:

Investment and Saving Plans

Endowment policies are a good way of putting aside the savings today for a future goal -
whether it's to buy a house in India or fund the entrepreneurial vision. ICICI’s savings-oriented
policies are designed to make the savings grow and have them available to the customers at
the end of a fixed number of years or through the term of the plan.

Life Time II

Presenting Life Time & Life Time II – unit –linked plans that meets the changing needs over a
lifetime. These solutions have been developed to meet the savings, protection and investment
needs at every stage in life.

Protection

-Choose a specified level of protection (available only with LifeTime).

- Two levels of Sum Assured to choose from (available only with LifeTime II).

- Flexibility to increase or decrease the sum assured.

- Add-on riders to protect clients against any eventuality.

Saving:

47
- Flexibility to increase or decrease your contribution.

- Facility of Premium Holiday, wherein the policy continues even if there is a temporary break in
the payment of annual contribution (available only with LifeTime).

- Facility of Automatic Cover Continuance, wherein the policy continues even if there is a
temporary break in the payment of annual contribution (available only with LifeTime II).

- Facility to top-up the investment any time customers have surplus funds.

- Additional allocation of units on a periodic basis.

- Loans against the policy.

Investment:

- Choose from among four funds, based on the investment objective and risk appetite.

-- Choice to switch between investments options (4 free switches every policy year).

Invest shield Gold

A unit-linked insurance plan with an assurance of Capital Guarantee, which offers the benefit of
a limited premium payment term. An ideal plan for protection with wealth creation that offers the
flexibility of a limited premium paying term.

- Flexibility to choose a premium payment term of 5, 7 or 10 years for a maturity term of 10, 15
or 20 years respectively.

-Flexibility to choose a specific level of protection (Sum Assured), based on a multiple of the
annual premium.

- At the end of the term (maturity), the higher of the value of units or the guaranteed value* is
paid. On death, Sum Assured along with the higher of value of units or the guaranteed value is
payable.

- Additional credits payable as a percentage of the initial annual premium are paid along with
the death or maturity benefit.

- Facility to make withdrawals from the 6th policy year onwards till the end of the policy term.
Every year withdraw up to 10% of the value of units.

- Flexibility to make additional investment with the help of the top-up facility.

- Flexibility to increase / decrease the annual premium amount

48
- Total transparency with the premium allocations, and other charges declared upfront.

The guaranteed value of the unit fund is the value of all invested premiums (premiums net of all
charges) along with the declared bonus interests.

Premier Life:

The key features of the plan are:

- Limited premium payment option: Choose from among a 3, 5, 7 or 10 year premium paying
term.

- Choice of sum assured: Choose a sum assured, which is a minimum multiple of 1 and a
maximum multiple of 25 times the annual contribution.

- Additional allocation of units on a periodic basis.

- Facility to top-up the investment any time customers have surplus funds.

- Choose from among four funds, based on the investment objective and risk appetite.

- Choice to switch between investments options (4 free switches every policy year).

- Flexibility to decrease the sum assured.

- Add-on riders to protect against any eventuality.

- Loans against the policy.

Retirement Plans

Many of the customers picture themselves enjoying the fruits of their labour after retirement -
going on a dream vacation, or helping our child's career take wing. Financing all this will depend
on their personal savings and investments, so it’s important to save for the future from today.
These retirement plans are designed to help customers systematically save, so that they can
enjoy all the things they have dreamed of when they retire.

Life Time Pension-II

49
Life Time Pension II gives the freedom to choose the amount of premium, and invest in
market-linked funds, to generate potentially higher returns. On the future retirement date, the
accumulated value of the units will be used to purchase an annuity - to provide clients with
regular income for life.

Power to choose the protection level: Choose from either a Zero sum assured or a sum
assured, which will be equal to the product of annual contribution and term.

Power to choose the retirement date: Take advantage of market movements by choosing a
vesting age between 45 - 75 years of age.

Power to increase your investments: Use your surplus funds to top-up the investments during
the deferment period.

Power to invest in a plan based on the priorities: Choose from among four funds, based on
investment objective and risk appetite. If at a later stage the financial priorities change, clients
can switch between the various fund options, absolutely free, 4 times a year.

Power to increase / decrease your contribution: Based on the requirements, increase or

decrease the contribution.

Child Plans

As a responsible parent, people want to ensure a hassle-free, successful life for their child.
However, life is full of uncertainties and even the best-laid plans can go wrong. Smart Kid
Education Plans are designed to provide flexibility and to safeguard the child's future education
and lifestyle, taking all possibilities into account. Smart Kid Child Plans has a bouquet of three
products which can help the clients secure their child's education.

- Unit-linked Regular Premium

- Unit-linked Single Premium
- Regular Premium Smart Kid

50
3) GENERAL INSURANCE:

Rishtey Health Insurance - for the parents and other family members in India

2 Years comprehensive medical cover for family

Advanced treatment covering technologically advanced surgeries
Re-imbursement of return Air Fare
Nursing care benefit and free health checkups with 'Cashless' benefit

Overseas Travel Insurance - for the parents and other family members visiting abroad

Covers both structure and contents of home

Provides protection against natural and manmade calamities
Protection against fire, burglary, gas cylinder, seepage etc.
Avail 25% discount on 5 year and 15% discount on 3 year policy

Car Insurance - for the four-wheelers in India

Transfer no claim bonus (NCB)

Cashless claims facility
No Documentation. Instant Policy issuance
Also covers PA and third party legal liability

Two-wheeler Insurance - for the two-wheeler in India

No documentation. Instant policy issuance

Effective cover against theft and insurance
Guaranteed safety for yourself and your two wheeler
Lightening fast claims service No documentation. Instant policy issuance
Effective cover against theft and insurance
Guaranteed safety for client & its two wheeler
Lightening fast claims service

51
Student Medical Insurance - for staying abroad during studies

Pay in Rupees, save in Dollars

Plan meets foreign universities insurance requirements
No documentation. No health check-up. Instant policy issuance
Policy is renewable for the second year

Home Safe+ Insurance - for the most prized possession, Home

Secure home and the loan against it

Loan Liability cover exclusive to ICICI Bank Home Loan customers
Critical Illness, Accidental Death and Disablement Benefit
Protect Home - Structure * Contents

52
Wealth Management:

Wealth is the result of a recognized opportunity. ICICI bank understand this and they work with
customers to plan and manage their financial opportunities prudently. Not just that, the bank
also extend a host of services so that customers can remain focused on immediate objectives
while the bank take care of all the wealth management requirements.

TEAM:

A perfect partnership is about similar perspectives

Goals, challenges, milestones. What drives customers, drives ICICI too. That' s why the bank
have put together a team of determined and seasoned professionals who not just assist
customers in their requirements, but also partner closely in the growth to bring the dreams to
fruition.

Dedicated Wealth Manager

A dedicated Wealth Manager is central to an ICICI Bank Wealth Management relationship and
is the face of the Bank. In fact he/she will be customer’s personal guide to the possibilities of
Wealth Management, and will work closely with clients in achieving their financial goals.
Customers will also have access to a Customer Service Manager/Officer, who will complement
their Wealth Manager.

Expert minds to give expert solutions

The Wealth Manager is only a part of the larger team which ensures that the money works
harder. Working silently behind the scenes is a team of product experts. These handpicked
experts have a wealth of financial experience under their belt and will assist customers in their
decision-making process.

PORTFOLIO BUILDING:

53
The investment process starts with understanding customer – their background, investment
objectives, risk tolerance and existing investment pattern. A comprehensive Client Profiling
exercise helps the bank in evaluating customer’s risk appetite and understanding their
investment objectives, which are kept in mind while building their portfolio.

54
Investment Planning

Based on the customer’s investment goal, wealth requirements, investment horizon and risk
profile, the bank construct a suitable asset allocation plan for the clients. During this exercise,
the bank also evaluates and realigns their existing investments as per the suggested asset
allocation, in case required by the customers.

Portfolio Construction

From the wide range of investment avenues, the bank construct appropriate solutions to
implement client’s investment plan and evolve a tailor-made portfolio for the specific
requirements. This would involve execution of investments in debt, equity, structured products
or alternative asset classes as per the suggested asset allocation.

Portfolio Maintenance

The bank monitors customers investments and periodically suggest rebalancing in the portfolio
for maintaining the asset allocation or aligning their portfolio to changes in macro-economic
factors that might affect the investments.

Portfolio Review

As the customer’s investment preferences or financial goals change over a period of time, the
banks reviews their portfolio periodically with the clients to discuss and implement any changes
in asset allocation or portfolio strategy. All with a view to keeping the portfolio healthy at all
times.

Products:

Online Trading

Mutual Funds

Life & General Insurance

55
RESEARCH

56
Objective of Research:

There were basically two objectives of the Market Research that was conducted among the
valuable customers of ICICI Bank. These two objectives were:

1) To know about the customers perception about Market Linked Investments;

This was done to find out that what the customers think about various kinds of market

Investments.

2) To find out the knowledge of customers about the various product offerings of ICICI

Bank.

This was done to find out that how much knowledge do the customers have about the various

products of the ICICI Bank.

Before assigning the project:

Being unknown from the Banking sector and its various procedures I had given training about
the ICICI Bank’s core products, different schemes & policies going on currently. I had received
training about the various product offerings & Mutual fund schemes so that during my survey I
can convince the valuable customers of ICICI Bank.

57
Research Work:

In the survey work the method of Questionnaire is being used. The questionnaires are then
studied properly to find out about the various valuable customers of ICICI bank & their
knowledge about the product offerings of ICICI bank.

Field Work:

I conducted a survey for two weeks among various valuable customers. The survey was about
market investment policies. I made the customers aware of various Mutual Fund schemes &
Insurance Plans of ICICI Bank. I gave them information about the Equity market and the market
risks present in today’s scenario. Many customers are convinced about investing their money in
ICICI mutual funds.

Step by step procedure of the survey:

1) Scheduling appointments:

Making telephone calls to all the customers for the appointments. Many a times
customers were busy, sometimes they told me to reschedule the appointments. Many of
the customers were high profile customers so they were busy all through the week
that’s why it was a tough job to take appointments. It proved a challenge for me to get
appointments.

2) View of the customers:

I interacted with all the customers to know about their views related to the market
investments & the risks associated with them. I asked them that what kind of knowledge
they possess about Insurance Policies such as Life stage pension plans & how much
they know about the various schemes of the ICICI bank. I came to know How they
previously invested their money in different schemes & what kind of profit they gained
earlier.

3) Lack of knowledge:

After this interaction I came to know that some of the people do not have

58
 adequate knowledge about market risks & how to achieve superior returns. Many
people were confused about the proper investments & their returns. They were
confused about the securing their future using various investment plans. Some of the
customers were happy by not investing in the schemes as they thought that they will
loose their principal amount because they do not have proper knowledge.

4) Explanation:

Then I explained them about the market risks & returns. I told them about the various
profitable policies of the ICICI bank and how those policies can be properly used. I
explained them to take the help of wealth managers of ICICI bank for the proper
investments. I made them aware about the efficiency and capabilities of the wealth
managers of ICICI bank. I convinced them that the investments made by the ICICI bank
are much more secure & profitable.

5) Query solutions:

I solved their queries about the various policies & schemes. I told them that why the
policies & schemes of ICICI bank are more profitable as compared to policies of other
financial institutions.

6) Agreed for Investment:

After the solution of the queries some of the customers get convinced to invest in the
Mutual funds of ICICI bank.

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ANALYSIS

60
Analysis of Survey:

Sample Size: 100 (As per company’s instructions)

Q1) How would you like to invest your savings?

F.D
Direct Equity
Real Estate
Mutual Funds
Gold

During the survey it was found out that the 42% of the customers are interested in Real Estate
as it has a lucrative market these days and 37 % in Mutual Funds. Only few of the customers
were interested in F.D., Direct Equity and Gold investments.

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Q2) How much comfortable are you to invest in equity (or market risk) products?

very
Just
Not

Nearly 56 % of the customers were not interested in investing in market risk products because
of the threat of capital loss. 42 % of the customers were just comfortable (who are risk takers)
and rest are not at all comfortable in investing.

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Q3) what are the major threats in investing money in mutual funds
or direct equity?

Capital Loss
Low Returns
Less Expertise
Stock Collection

The major threats according to 82% customers are Capital loss and according to 12 % Low
Returns. Customers mainly do not invest their money because of these two threats. Rest 4 %
and 2% customers think that less expertise & stock collection are major threats.

63
Q4) which investment style do you prefer most?

Growth
Value
Others

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During the survey it was found that 79% of the customers prefer Growth kind of investment style
and 19% of the customers prefer Value kind of investment style. Only 2% of the customers
prefer others.

Q5) What do you expect from your investment in various portfolios?

65
 Principal Protection
Wealth Creation
Superior Returns
Store of Value

82% of the customers expect Superior returns from their investments. Such customers want
their returns to be more & more. 9% expect principal protection as they do not want to loose
their principal amount, 6% prefer Wealth creation and only 2% prefer store of value.

Q6) Which do you think is more profitable?

66
 Real Estate
Gold Equity
FD

69% of the customers think that Real Estate is more profitable as it is the most lucrative market
at present.10% think that gold equity is more profitable and 21% feels FD as more profitable.

Q7) What time horizons are you looking to do investment?

67
 1 Year
1-3 Years
3-5 Years
>5 Years

Most of the people (82%) want to invest their money for a period of 3-5 years. 11% of the
people want to invest for 1-3 years. Only 5% customers want to invest their money for more
than 5 years. 2% customers want to invest for 1 year.

Q8) Which Market Cap do you think is more profitable?

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 Large
Mid
Small

Most of the customers (92%) want to invest their money in Mid Cap as they have been among the
best performers in the equity diversified category. Only 5% of the customers want to invest their
money in Small Cap and 3% customers want to invest money in Large cap.

Q9) Are you willing to take assistance of wealth manager to manage

your portfolio?

69
 Yes
No
Will Think
Don't Know

79% of the customers wanted to take assistance of the wealth managers as they think that the
wealth managers would be more helpful in increasing their returns. 13% of the customers told
that they will think about the assistance.5% of the customers told that they do not require any
assistance and 3% of the customers were not sure about it.

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 RESULTS & DISCUSSION

Results & Discussion:

Challenge:

Basic challenge of ICICI is the business growth by addressing the more lucrative and growing
segment of middle-class consumers and emerging corporate.
71
Objective of ICICI Bank:

“Our objective of creating a universal bank providing end-to-end financial services,

clearly required solutions which were based on new-generation technology, offered end-
to-end functionality and were highly flexible and scalable. Finacle offered all this and
much more.”

Chanda Kochhar
Joint Managing Director
ICICI Bank Limited

Main challenge faced by the company is retention of clients as well as increasing its
number of clients. The major objective of the survey was to increase the awareness
among customers about the products of ICICI Bank and about the recent policies and
schemes of ICICI bank.

Possible Solution:

Strategic adoption of technology to ensure that ICICI transforms into a universal bank, which will
provide fast and efficient customer service besides offering the whole gamut of banking and
financial services.

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The retention of clients can be done with better relationship building, proper interaction and
proper care of clients. By understanding the basic needs of the customers & by analysing the
financial situation of the customers the clients can be easily retained. The approach of the
company should not be product centric. It should primarily focus on clients and their needs. The
risk appetite of the customers should be calculated properly. The company should understand
that when and under what circumstances the clients need money. The company should target
on fulfilling the short as well as long term goals.

The company should review the portfolio of clients time to time. By proper monitoring and
rebalancing the portfolio at regular intervals the clients should be retained without any problem.

From the survey ICICI bank gained the knowledge about their various customers & that there is
lack of knowledge among some customers. Through this survey the customers came to know
about the schemes & policies of ICICI bank and also various product offerings of ICICI bank.

With the help of my survey it was found that most of the customers were interested in
investing their money in Real Estate. Principal protection is their main target & the main
risk according to the Clients is Capital loss. They expect superior returns from the
portfolios in which they invest. And a lot of the clients were interested in taking the help
of the Wealth managers from ICICI bank.

Conclusion & Recommendation:

Dedicated workforce to serve people:

Across India, ICICI Bank has Regional Sales Managers to look after Indian & NRI Requirements

73
Implications for Future Research:

1) The pension monies entering the Mutual Fund industry, as retirement products can be offered
for different income groups, age categories, and different service classes, varying asset
allocation with annuity, life cover and withdrawal facility at varying stages.

2)Innovative products such as target maturity plans and children plans, commodity-based
products, new asset classes such as real estate funds, hedging and arbitrage products and
bundled products providing pension, insurance and mutual fund benefits in one product should
be introduced by the mutual fund industry.

3) The small-cap funds and funds with more-volatile fund flows hold more cash. However, the
fund managers with better stock-picking skills should hold more cash, so that when the market
falls the customers do not have to suffer losses.

4) The wealth managers should keep analyzing the portfolios of their customers for proper
investments and superior returns.

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REFERENCES

1) Philip Kotler. Marketing Management(2002), Prentise Hall Inc, A pearson Education

Company

2) Product Offering Brochures, ICICI Bank

3) ICICI Bank website: www.icicibank.com

4) Amfi India website: www.amfiindia.com

5) Google website: www.google.com

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 ANNEXURE

Questionnaire:

76
Name:

Gender:

Age:

Email-id:

Contact No:

Address:

Q1) How would you like to invest your savings?

a) F.D.

b) Direct Equity

c) Real Estate

d) Mutual Funds

e) Gold

Q2) How much comfortable are you to invest in equity (or market risk) products?

a) Very b) Just c) Not

Q3) What are the major threats in investing money in mutual funds or direct equity?

a) Capital Loss

b) Low Returns

c) Less Expertise

d) Stock Collection

Q4) which investment style do you prefer most?

a) Growth
77
b) Value

c) Others

Q5) What do you expect from your investment in various portfolios?

a) Principal Protection

b) Wealth Creation

c) Superior Returns

d) Store of Value

Q6) Which do you think is more profitable?

a) F.D.

b) Real Estate

c) Gold

Q7) What time horizons are you looking to do investment?

a) 1Year

b) 1-3 Years

c) 3-5 Years

d) >5 Years

Q8) Which Market Cap do you think is more profitable?

a) Large

b) Mid
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c) Small

Q9) Are you willing to take assistance of Wealth manager to manage your portfolio?

a) Yes

b) No

c) Will Think

d) Don’t Know

79