Institute of Management Studies

Indore

Devi Ahilya Vishwavidyalaya,

Industrial Credit and Investment Corporation of India Limited Presented By

MBA-Financial Administration Priyanka Jadam Pratima swarnkar Nitesh Kumar Kirar
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Todays Background Agenda

Subsidiaries Organization structure Working Procedure

Background
History & Milestones! Global presence! ICICI Bank Today!

Global presence
Canad a UK
USA Belgium Russia China Hong Kong Germany

Bahrai Banglades nQatar Malaysia h UAE Thailand Mumbai Singapore Sri Lanka Indonesia

South Africa

Subsidiary

Largest international balance 5 sheet among Indian banks

Representative Office

Overseas Branch

ICICI Bank today

Large capital base Vast talent pool Low operating costs Technology focus Strong corporate relationships

diversified diversified and deand derisked risked business business model model
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Indias largest Indias largest private sector private sector bank and one bank and one stop financial stop financial solutions solutions provider with a provider with a

s Subsidiaries

Organization Structure
Retail Banking Wholesale Banking Project Finance and Special Assets Management International Business Corporate Centre

Working Procedure

Why ICICI is so successful ? And why not other banks?

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What was the MAGIC that forced ICICI to come in Retail Sector?
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First Magic that forced ICICI to come in Consumer Segment

2000: Per capita 2000: Per capita income Rs income Rs 16,173 16,173 2007: Per capita 2007: Per capita income Rs income Rs 24,295 24,295 2015: Per capita 2015: Per capita income Rs income Rs 36,442 36,442

Consuming Consuming class class 35% population growth population estimated at estimated at about 260 mn11 about 260 mn

Consuming Consuming class class 70% population population estimated at growth estimated at about 350 about 350 mn11 mn

Consuming Consuming class class population population estimated at estimated at about 600 about 600 mn11 mn

From per capita GDP of US$ 1,000 to US$ 1,500: consuming population to grow manifold

Estimates based on NCAER data. Consuming class comprises middle and high income 11 households
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Second Magic that forced ICICI to come in Consumer Segment

Consumer loans outstanding (USD in billion)

77 7 77 7 77 7 77 7 77 7 77 7 77 7 77 7 7 India Thailand Malaysia Taiwan Korea 7 % 7% 7 7% 7 7% 7 5% 5

7% 7

7% 7 7% 7 7% 7 7% 7 7% 7 7% 7 7% 7 7% 7 7 %

USA

Total consumer loans outstanding Consumer loans outstanding / GDP (%)

Source: Salomon Smith Barney 12

Consumer loans outstanding / GDP (%)

What were ICICI Strategies to Capture untapped market?

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ICICI Banks strategy to capture retail potential Strong corporate relationshi Achieving ps Brand leadership in retail financial Technology services Operationa l excellence 14

ICICI Banks consumer finance strategy S Aspiratio The one stop Multi t financial shop product Pan-India ns r Product offerings
o n g
differentiation Sound selling strategy Multi channel offerings Efficient operations Focus on cross selling Technology led delivery of products Superior service quality at optimum cost

provider of full suite of retail products

r a n d

Market leadershi p & Scale

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Establishing consumer credit distribution

Doorstep delivery
Agents taking product to the customer Availability of credit at the customers home or office

Point-of-sale delivery

Enhanced customer convenience the key selling proposition

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Strong channel partner network Manufacturers, dealers, realtors Availability of credit at point-of-sale of product

and achieving economies of scale.

Particulars Product Portfolio Branches/ Offices ATMs Employee Base Customer Base Internet customers
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Before 1999
Single product 6 1,000 3,000 -

Now
complex retail & corporate finance products 2044 5546 >35000 31 Mn >18.3 Mn

by leveraging technology channels

Channel Branches2 ATMs & POS terminals Internet Call centre & mobile banking Usage 20001
94% 3% 2% 1%

Usage 20081,2
7% 37% 21% 30%

1. For savings accounts. 2. Excluding 5% of transactions processed at centralised operations centres

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Is it possible to manage excellency in such a COMPLEX system?

Then
What did ICICI do to manage such a COMPLEX system?
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Operational excellence Prudent credit policies

6 sigma

Adequate fraud control

Rigorous collection mechanism

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What does make ICICI better than its Competitors?

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ICICI Bank: Low cost technology as competitive advantage

* ICICI Bank spending as 100 units per account

Source: Mckinsey

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