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Documenti di Professioni
Documenti di Cultura
A PROJECT REPORT ON
RETAIL BANKING
SUBMITTED BY
PRAMOD SHYAMLAL YADAV
T.Y.B.B.I [Semester V]
SUBMITTED TO
UNIVERSITY OF MUMBAI
Academic Year
2011 2012
PROJECT CO-ORDINATOR
SHUBHA
Page 1
PROJECT REPORT ON
(RETAIL BANKING)
BACHELOR OF COMMERCE
BANKING AND INSURANCE
SEMESTER V
(2011-2012)
SUBMITTED
In Partial Fulfillment of the requirements
For the award of the degree of
Bachelor of management
SUBMITTED BY
(NAME)
ROLL NO: 32
SEAT NO
GURU NANAK COLLEGE OF ARTS, SCIENCE AND
COMMERCE
GURU TEGH BAHADUR NAGAR, MUMBAI-400037
Page 2
DECLARATION
I PRAMOD .S. YADAV THE STUDENT OF B.COM
BANKING AND INSURANCE SEMESTER V (2011-2012)
HEREBY DECLARE THAT I HAVE COMPLETED THE
PROJECT ON RETAIL BANKING
SIGNATURE OF STUDENT
(NAME)
ROLL NO: 32
SEAT NO:
Page 3
C E R T F I C A T E
THIS IS TO CERTIFY THAT SHRI / MISS _____________________________
OF B.COM BANKING AND INSURANCE SEMESTER V (2011-2012) HAS
SUCCESSFULLY COMPLETED THE PROJECT ON ______________________
___________________________________
UNDER THE GUIDENCE OF Prof.________________________________
PRINCIPAL
COURSE CO-ORDINATOR
EXTERNAL EXAMINER
Page 4
ACKNOWLEDEMENT
This is to express my earnest gratitude and extreme joy at being bestowed with an
opportunity
to
get
an
interesting
and
informative
project
on
_____________________________
__________________________________ I would like to thank all the people
who have helped me in completion of project, I would avail this opportunity to
express my profound gratitude and in debtness to all those people.
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INDEX
CHAPTER 1
CHAPTER 2
CHAPTER 3
CHAPTER 4
CHAPTER 5
CHAPTER 6
CHAPTER 7
CHAPTER 8
INTRODUCTION
NUMBER OS SERVICES
ROLE AND CONTRIBUTION
FUTURE OF RETAIL BANKING
BANKS ACROSS THE COUNTRY
CASE STUDY
NATIONAL SCENARIO
CONCLUSION
RETAIL BANKING
DEFINITION:
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Present day tech-savvy bankers are now more looking at reduction in their
operating costs by adopting scalable and secure technology thereby reducing the
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INTRODUCTION
Page 8
Page 9
1.
Current A/C
2.
Loan
3.
4.
Online A/C
5.
Debit Card
6.
Phone Banking
7.
8.
Net Banking
9.
Bill Pay
- ATMs
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11
Current A/C:Under this account a person can deposit and with draw money as many times
in a day as he wants . The regulars an average quarterly balance of the Rs. 10000 only
.Besides the free ATM card and easy accessibility. Your first 50 cheque leave are o
Offered free. This can be as:
Premium current account From any branch
RETAIL banks provides following loan under the retail banking segment :
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12
Holiday abroad
Higher education
Two wheelers
Corporate salary A/c:With HDFC banks corporate salary A/C, employees receive an array of
rewards with then monthly pay cheque. All at no extra coast to organisation. E-age
banking service from any where, at any time:
Phone banking
Net banking
Bill payable
Overdraft facility
Demote A/C
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14
Debit Cards
HDFC Banks International debit card provide seamless freedom and fiscal
management to spending, both locally and globally.
The Debit and ATM Card, when issued as visa compliant cards, will give you
the freedom to access your savings or current at merchant location and ATMs.
Whenever you make payments, the amount will be instantly debited from your
account. The present ATM cards allow you to access your account 24 hours a day, all
through the year.
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15
Saving Accounts :
This account is opened for the purpose of savings. Any purpose of savings.
Any person including a minor can open this account by depositing a small sum of
money. Saving Bank Account is subject to the restriction as to the number of
withdrawal as also the amount of withdraw as also the amount of withdrawal
permitted by banks during any specified period. However there is no restriction on the
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16
Time Deposit
Any deposit, which is repayable after a period of notice rather than repayable
after a fixed date or period, is a time deposit or popularly called as term deposits. The
following type of account in both banks are classified under Retail Time Deposits.
Fixed Deposit
Apshaya Deposit
Cumulative Deposit
Pragati Deposit
Fixed Deposit :Fixed Deposit where the depositor makes a lumpsum deposit where the
depositors makes a lumpsum deposit at one time for a fixed period and receive
payment there of on Maturity with interest.
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18
Advantages
Your money is much more secure than in a box under your bed and you can
buy goods, be paid, and sell things without cash changing hands.
The bank you are familiar with and which knows you can also offer you a
wide range of other services, such as mortgages and insurance. Your bank may be
able to offer you competitive deals in return for your loyalty as a customer.
Retail banks offer a variety of ways you can access your account and
manage your money, most notably via internet banking. This means that you can
keep a close eye on your finances and avert many potential problems.
Disadvantages
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19
Banks are a business, and they need to make money from looking after yours. If
the bank decides to apply charges to your account (within the terms of the
account), you may only find out about it afterwardsfor example if you
accidentally go overdrawn without permission. If you disagree with a charge, you
will need to contest it to recover the money.
Action Checklist
Think carefully about what you want from a bank account and what is
important to you. For example, if you are not concerned about having face-to-face
contact with your bank, an internet-only bank may suit you.
When choosing an account, check the interest rate offered and how quickly
and by what methods you can access your money.
When looking for a current or checking account, find out what extra services
the bank can offer you, such as a debit card, overdraft facility, free or
cheap insurance policies, etc.
Does the bank have local branches, or is it internet only? Are you
comfortable with the ways in which you can communicate with the bank?
Most importantly, find out what charges apply to various transactions and
events, such as going overdrawn without the banks approval.
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20
Challenge charges you feel are unfair or wrongly applied to your account.
Regularly review your savings accounts to make sure you continue to get the
best interest rates available.
Dont
Dont let financial problems get out of control, and dont put off talking to
your bank about them if they do.
Dont be afraid to move to a new bank if you are not happy with your
current one and if, via sound research, you have found something better. The bank
you want to move to will be happy to take on the transfer arrangements for you
on
the
other
hand.
These
challenges
are
listed
in
the
market research reports made on retail banking. Further growth and success of the
retail market (in the banking sector) will depend upon the capacity and ability of
the banks to meet with the challenges and make the best use of the opportunities.
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22
The study has also outlined other issues like customer information and distribution
network, the areas banks need to address. While retail banking offers phenomenal
opportunities for growth, the challenges are equally daunting. How far the retail
banking is able to lead growth of the banking industry in future would depend
upon the capacity building of the banks to meet the challenges, the report said.
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23
AS we have been working with our existing bank clients inside and outside the
country, we have been struck by the rapid and provocative changes facing the retail
sector. While the pace and direction of change seems to vary somewhat from
country to country, retail banks everywhere are working vigorously to address new
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24
This project addresses three questions from a global perspective. First, what are the
key factors driving the almost universal changes in retail banking? Secondly,
where will these drivers take the industry in the future? Thirdly, what are the
general strategies that retail banks can undertake to succeed over the next decade?
This study is not an academic exercise. Rather, it has grown out of a common
thread of themes which are emerging from client assignments worldwide. These
themes have been assessed and micro-economic analysis undertaken in order to
understand how they operate and where they are taking the industry.
Trends underway: So what are the trends that we see in retail banking? Our core
conclusion is that the retail banking industry, owing to a variety of factors, is
currently not susceptible to scale economies. By this, we mean that retail banks do
not seem to get anymore efficient as they get larger. If anything, the reverse
appears to be the case. However, there are a number of strong reasons to suppose
that this will change in the future. We believe that retail banking will increasingly
be susceptible to scale economies. In turn, this will create pressure for the industry
to restructure.
Analogies from other industries support this train of thought. We have assessed
two
recently
deregulated
industries
--
the
power
industry,
and
the
telecommunications industry -- and noted that the forces which drove their
restructuring, and the consequences. Modifying the driving forces for these
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25
We have also looked at other trends. Technology in particular will change the retail
banking industry fundamentally in the years to come. The first key consequence is
that banks will lose their monopoly as centres for money transmission. In other
words, the activity of transmitting money from one person or company to another
will increasingly be able to be carried out be a variety of providers. As with
telecommunications, vigorous cost competition will result. The second key
consequence of technology will be the proliferation of distribution channels for
retail banking products. Whereas in the past, the bank branch was the only channel
for distributing most financial services products, in the future a number of different
channels will continue to erode the branch's predominance. Many of these we are
currently familiar with -- telephone, especially Mobile phone, ATM's, email etc.
In addition, however, new channels are slowly emerging from the primordial soup
of the information superhighway. Although we can only guess at how they will
affect the distribution of retail banking products, we are confident that these will
ultimately supplement the other alternative channels and further erode bank
branch's share.
Consequences of these trends: The consequences of the above will be wholesale
restructuring. We believe that retail banking will disaggregate into an interlinked
portfolio of activities with three broad categories:s
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26
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27
CASE STUDY
HDFC BANK
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29
Promoters
HDFC is India's premier housing finance company and enjoys an impeccable track
record in India as well as in international markets. Since its inception in 1977, the
Corporation has maintained a consistent and healthy growth in its operations to
remain the market leader in mortgages. Its outstanding loan portfolio covers well
over a million dwelling units. HDFC has developed significant expertise in retail
mortgage loans to different market segments and also has a large corporate client
base for its housing related credit facilities. With its experience in the financial
markets, a strong market reputation, large shareholder base and unique consumer
franchise, HDFC was ideally positioned to promote a bank in the Indian
environment.
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30
Capital Structure
The authorized share capital of the Bank is Rs. 550 crore. The paid-up capital as
on said date is Rs. 459,69,07,030/- (45,96,90,703 equity shares of Rs. 10/- each).
The HDFC Group holds 23.63 % of the Bank's equity and about 17.05 % of the
equity is held by the ADS Depository (in respect of the bank's American
Depository Shares (ADS) Issue). 27.45% of the equity is held by Foreign
Institutional Investors (FIIs) and the Bank has about 4,33,078 shareholders.
The shares are listed on the Bombay Stock Exchange Limited and The National
Stock Exchange of India Limited. The Bank's American Depository Shares (ADS)
are listed on the New York Stock Exchange (NYSE) under the symbol 'HDB' and
the Bank's Global Depository Receipts (GDRs) are listed on Luxembourg Stock
Exchange under ISIN No US40415F2002.
the amalgamation of Centurion Bank of Punjab with HDFC Bank was formally
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31
the
NSE/BSE
have
strong
and
active
member
base.
The Bank also has 4,393 networked ATMs across these cities. Moreover, HDFC
Bank's ATM network can be accessed by all domestic and international
Visa/MasterCard, Visa Electron/Maestro, Plus/Cirrus and American Express
Credit/Charge cardholders.
Mr. C.M. Vasudev has been appointed as the Chairman of the Bank with effect
from 6th July 2010 subject to the approval of the Reserve Bank of India and the
shareholders. Mr. Vasudev has been a Director of the Bank since October 2006. A
retired IAS officer, Mr. Vasudev has had an illustrious career in the civil services
and has held several key positions in India and overseas, including Finance
Secretary, Government of India, Executive Director, World Bank and Government
nominee on the Boards of many companies in the financial sector.
The Managing Director, Mr. Aditya Puri, has been a professional banker for over
25 years, and before joining HDFC Bank in 1994 was heading Citibank's
operations in Malaysia.
The Bank's Board of Directors is composed of eminent individuals with a wealth
of experience in public policy, administration, industry and commercial banking.
Senior executives representing HDFC are also on the Board.
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33
network
and
Automated
Teller
Machines
(ATMs).
The Bank has made substantial efforts and investments in acquiring the best
technology available internationally, to build the infrastructure for a world class
bank. The Bank's business is supported by scalable and robust systems which
ensure
that
our
clients
always
get
the
finest
services
we
offer.
The Bank has prioritised its engagement in technology and the internet as one of its
key goals and has already made significant progress in web-enabling its core
businesses. In each of its businesses, the Bank has succeeded in leveraging its
market position, expertise and technology to create a competitive advantage and
build market share
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34
HDFC Bank offers a wide range of commercial and transactional banking services
and treasury products to wholesale and retail customers. The bank has three key
business segments:
Wholesale Banking Services
The Bank's target market ranges from large, blue-chip manufacturing
companies in the Indian corporate to small & mid-sized corporates and agribased businesses. For these customers, the Bank provides a wide range of
commercial and transactional banking services, including working capital
finance, trade services, transactional services, cash management, etc. The bank
is also a leading provider of structured solutions, which combine cash
management services with vendor and distributor finance for facilitating
superior supply chain management for its corporate customers. Based on its
superior product delivery / service levels and strong customer orientation, the
Bank has made significant inroads into the banking consortia of a number of
leading Indian corporates including multinationals, companies from the
domestic business houses and prime public sector companies. It is recognised
as a leading provider of cash management and transactional banking solutions
to corporate customers, mutual funds, stock exchange members and banks.
Retail Banking Services
The objective of the Retail Bank is to provide its target market customers a full
range of financial products and banking services, giving the customer a onestop window for all his/her banking requirements. The products are backed by
world-class service and delivered to customers through the growing branch
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35
Treasury
Within this business, the bank has three main product areas - Foreign Exchange
and Derivatives, Local Currency Money Market & Debt Securities, and
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36
Credit Rating
The Bank has its deposit programs rated by two rating agencies - Credit Analysis
& Research Limited (CARE) and Fitch Ratings India Private Limited. The Bank's
Fixed Deposit programme has been rated 'CARE AAA (FD)' [Triple A] by CARE,
which represents instruments considered to be "of the best quality, carrying
negligible investment risk". CARE has also rated the bank's Certificate of Deposit
(CD) programme "PR 1+" which represents "superior capacity for repayment of
short term promissory obligations". Fitch Ratings India Pvt. Ltd. (100% subsidiary
of Fitch Inc.) has assigned the "AAA ( ind )" rating to the Bank's deposit
programme, with the outlook on the rating as "stable". This rating indicates
"highest credit quality" where "protection factors are very high"
The Bank also has its long term unsecured, subordinated (Tier II) Bonds rated by
CARE and Fitch Ratings India Private Limited and its Tier I perpetual Bonds and
Upper Tier II Bonds rated by CARE and CRISIL Ltd. CARE has assigned the
rating of "CARE AAA" for the subordinated Tier II Bonds while Fitch Ratings
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37
The bank was one of the first four companies, which subjected itself to a Corporate
Governance and Value Creation (GVC) rating by the rating agency, The Credit
Rating Information Services of India Limited (CRISIL). The rating provides an
independent assessment of an entity's current performance and an expectation on
its "balanced value creation and corporate governance practices" in future. The
bank has been assigned a 'CRISIL GVC Level 1' rating which indicates that the
bank's capability with respect to wealth creation for all its stakeholders while
adopting sound corporate governance practices is the highest.
Branch
Welcome to the networked world of HDFC Bank. You can open an account at any
branch nearest to your residence or office and access it at any branch in the city or
anywhere in the country.
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38
With the Centurion Bank of Punjab merger with HDFC Bank the total network is
now 1,725 branch strong.
ATM
Withdraw cash, check your balance, order a cheque book, all at your own
convenience, from any of the over 4,393 HDFC Bank ATMs across the country.
The fast, easy and convenient way of transacting through your account
Banking should be effortless. With HDFC Bank, the efforts are rewarding. No
matter what a customer's need and occupational status, we have a range of
solutions that are second to none.
Whether you're employed in a company and need a simple Savings account or run
your own business and require a robust banking partner, HDFC Bank not only has
the perfect solution for you, but also can recommend products that can augment
your planning f
Savings Accounts
These accounts are primarily meant to inculcate a sense of saving for the future,
accumulating funds over a period of time. Whatever your occupation, we are
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39
Current Accounts
Now, with an HDFC Bank Current Account, experience the freedom of multi-city
banking! You can have the power of multi-location access to your account from
any of our 1,725 branches in 780 cities. Not only that, you can do most of your
banking transactions from the comfort of your office or home without stepping out.
We make it our business to help you with your business by offering you a Current
Account with all the benefits you need to stay ahead of your competition.
At HDFC Bank, we understand that running a business requires time and money,
also that your business needs are constantly evolving. That's where we come in.
We provide you with a choice of Current Account options to exclusively suit your
business - whatever the size or scope.
Fixed Deposits
Long-term investments form the chunk of everybody's future plans. An alternative
to simply applying for loans, fixed deposits allow you to borrow from your own
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40
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 Rs. 40.25 billion (US$ 896
million) for the year ended March 31, 2010. The Bank has a network of 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 in the areas of investment banking, life and non-life insurance, venture
capital and asset management. The Bank currently has subsidiaries in the United
Kingdom, Russia and Canada, branches in United States, Singapore, Bahrain,
Hong Kong, Sri Lanka, Qatar and Dubai International Finance Centre and
representative offices in United Arab Emirates, China, South Africa, Bangladesh,
Thailand, Malaysia and Indonesia. Our UK subsidiary has established branches in
Belgium and Germany.
ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and the
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41
To understand about this big bank, we need to understand how it became so big
a force to reckon with. ICICI (Industrial Credit Investment Corporation of India)
promoted the ICICI bank in 1994 with its stake reducing to 46% after the IPO in
1998. ICICI is a well-known name in India along with IDBI and was formed in
1955 at the initiative of the World Bank, Indian Government and Indian Industries.
Both of these institutions have an exceptional brand-image and one of the highest
possible ratings from CRISIL and other rating organizations. ICICI can be
considered an oligopolistic corporation along with IDBI (please M2M me, if you
want to discuss this!). ICIC listed in NYSE in 2000. In 2001 it underwent a tight
marriage with Bank of Madura in a stock-only amalgamation. This was a tough
marriage and I guess they are still suffering from this hiccup, which kind of
substantiates their mediocre performance today, in my perspective. This and the
merger with the ICICI Corporation have caused some management strain and some
tough merger time. I could only wish they come over this and serve the customers
in a better manner.
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42
ICICI Venture is the largest and one of the most successful private equity and
venture capital management companies in India with aggregate funds under
management in excess of USD 2 billion. ICICI Venture is a subsidiary of ICICI
Bank, Indias second-largest bank with total assets of about US$ 56.3 bn (March
31, 2006) and market capitalization of about USD 10.8 bn (June 2006).
Over the years, ICICI Venture has built an enviable portfolio of companies in the
sectors of information technology, pharmaceuticals, biotechnology, media and
retail thereby delivering value consistently to its investors.
ICICI Venture has the distinction of managing a large number of exits in the
country. With over 100 liquidity events, the organization has reaped rich
experience and is well positioned to handle IPOs, strategic sale and/or mergers.
ICICI Venture has a wide network of third party investors, which include
domestic investors such as public sector banks, financial institutions and insurance
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43
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.
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. It's really easy !
Personal Loans
If you're looking for a personal loan that's easy to get, your search ends here. ICICI
Bank Personal Loans are easy to get and absolutely hassle free. With minimum
documentation you can now secure a loan for an amount upto Rs. 10 lakhs.
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44
Car Loans
The most preferred financier for car loans in the country. Network of more than
1000 channel partners in over 200 locations. Tie-ups with all leading automobile
manufacturers to ensure the best deals. Flexible schemes & quick processing.
Hassle-free application process on the click of a mouse.
ICICI Bank has designed a gamut of accounts and deposits to cater to your unique
banking needs. Add this to our extensive branch & ATM network and facilities
like mobile, phone, internet and doorstep banking, and experience banking at its
best.
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Dream Deposits
A unique offering of four term deposit plans that enable you realise your dreams at
every stage of your life.
Fixed Deposit
Fixed Deposits at ICICI Bank comes with nomination facility. We also offer online
access to your Fixed Deposits through our Internet Banking channel. Internet
Banking at ICICI Bank allows you to connect your Credit Card, Loan and your
Fixed Deposit with your savings account.
Savings Account
Debit-cum-ATM Card - With ICICI Bank Savings Account you will get a debit
card that you can use to withdraw cash from any ATM. You may also use your
debit card to directly make purchases through a Visa/Mastercard POS (Point of
Sale) machine available at most stores! This will help you access your money from
anywhere.
Young Stars
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47
Bank Branch
You can find a host of ICICI retail products at our widespread Bank Branch
network-Bank Accounts,Credit and Debit cards, Bonds, Demat Accounts, Loans
against Shares, etc.
Anywhere Banking
ICICI Bank is the second largest bank in the country. It services a customer
accounts through a multi-channel access network. This includes branches and
extension counters, ATMs, Call Centre and Internet Banking .
Thus, one can access the various services ICICI Bank has to offer at anytime,
anywhere and from anyplace. To learn more about the various channels, please
click on the topic of your interest mentioned in the left menu.
ATM
ICICI Bank's 24 Hour ATM network is one of the largest and most widespread
ATM Network in India. Our ATMs are located in commercial areas, residential
localities, major petrol pumps, airports, near railway stations and other places
which are conveniently accessible to our customers.
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48
Cash Withdrawal: Withdraw upto Rs. 25,000/- per day from your account
(50,000 for HNI's). Fast Cash option provides the facility of withdrawing
prefixed amounts. Ultra Fast Cash option allows you to withdraw
Rs.3000/- in one shot.
Balance Enquiry : Know your ledger balance and available balance
Mini Statement : Get a printout of your last 8 transactions and your current
balance.
Deposit Cash / Cheques : Available at all full function ATMs, Customers
can deposit both cash and cheques. Cash deposited in ATMs will be
credited to the account on the same day (provided cash is deposited before
the clearing) and cheques are sent for clearing on the next working day.
Funds Transfer: Transfer funds from one account to another linked
account in the same branch.
PIN Change : Change the Personal Identification Number (PIN) of ATM
or Debit card.
Payments : The latest feature of our ATMs, this functionality can be used
for payment of bills, making donations to temples / trusts, buying internet
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A user friendly automated service menu offers you convenient access to your
account coupled with security as, all your transactions are protected by a Atm Pin The Personal password to your Banks & Credit card Account and Tpin for your
Demat Account . But if you do need any assistance our officers will be glad to help
you
Self Phone Banking (IVR) access Mechanisms are as follows:
For Deposits --The customer would need to key-in his ATM/Debit Card
Number and its corresponding ATM PIN.
For Credit Cards -The customer would need to key-in his 16 digit Card
Number and its corresponding ATM PIN.
For Demat Account Holders -The customer would need to key-in his 14
Digit Demat Account Number and its TPIN
For Bond Account Holders -The customer would need to key in his Bonds
holder Number only.
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51
Even their offices reflect their attitudes. ICICI Bank's headquarters in suburban
Mumbai [ Images ] is a huge, imposing edifice in glass and granite. HDFC Bank's
office in central Mumbai is comparatively smaller and more sedately furnished.
The two banks have carried forward their style statement in their approach to
business. ICICI Bank thinks big, is all for growth and hungry for marketshare.
HDFC Bank is more conservative and cautious, grows at a measured pace, without
taking any undue risks.
ICICI Bank's assets in the retail space stand at Rs 56,000 crore (Rs 560 billion). In
comparison, the tally for HDFC Bank is Rs 18,000 crore (Rs 180 billion). ICICI
Bank also leads HDFC Bank in almost every segment they are present in. But
that's just the current update.
The DNA of the strategy
ICICI Bank began its retail banking venture in mid-1999. By January 2000, it had
moved on to introducing home loans, car loans, personal loans and credit cards.
Realising the need for a bigger retail deposit base, the bank started
building a branch and an ATM network. The acquisition of Bank of
Madura in March 2001 added 263 branches, many of them in cities
where ICICI Bank did not have a presence.
The merger of the erstwhile financial institution ICICI Limited with the bank in
April 2002, gave it a ready-made corporate clientele. The flip side was that ICICI
Bank had Rs 10,000 crore (Rs 100 billion) of restructured assets for which it had to
make provisions.
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52
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54
Better pick-up
The numbers tell the story. ICICI Bank's retail deposits are nudging Rs 60,000
crore (Rs 600 billion) and in FY05, it grew its deposits by 47 per cent compared
with the industry deposit growth of 14 per cent.
HDFC Bank's retail deposits are about Rs 23,000 crore (Rs 230 billion). Even in
home loans, ICICI Bank commands 30 per cent of the market, having eaten into
housing finance pioneer, HDFC's share.
Says Morparia, "The convenience proposition together with the geographical reach
has paid off. We rolled out ATMs far ahead of the others and were able to crosssell our products.
HDFC
ICICI
Bank
Bank
Branches
467
565
ATMs
1,147
2,000
Cities
211
371
18,000
56,000
99,800
Car
11,500
Mar-05
loans
(Rs 2,500
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customers
(Mn)
Cost of deposits
(%)
Net interest margin
(%)
Net NPLs (%)
6.4
13.7
3.2
4.5
3.2
2.4
0.2
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59
CONCLUSIONS
Retail banking is the fastest growing sector of the banking industry with the key
success by attending directly the needs of the end customers is having glorious
future in coming years. Retail banking sector as a whole is facing a lot of
competition ever since financial sector reforms were started in the country.Walk-in
business is a thing of past and banks are now on their toes to capture
business.Banks therefore, are now competing for increasing their retail business.
There is a need for constant innovation in retail banking.
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BIBLIOGRAPHY
www.google.com
www.icicibank.com
www.hdfcbank.com
www.allindiabanks.com
www.centralbank.com
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