A SUMMER TRAINING REPORT

ON

CUSTOMER SATISFACTION
OF
ICICI BANK

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF

BACHELOR OF BUSINESS ADMINISTRATION (BBA)

TRAINING SUPERVISOR SUBMITTED BY

MR. RAJEEV BAHRI PRIYANKA DHAMIJA
MANAGER MARKETING ENROLLMENT NO- 05511242137

SESSION 2005-2008

GURU JAMBHESHWAR UNIVERSITY

 HISAR

ACKNOWLEDGEMENT

A research studies can’t be completed without the guidance, inspiration and co-
operation from the various quarters. This study also is the imprints of many persons.

I would like to express my gratitude to Mr. Rajeev Bahri Marketing Manager-

ICICI, for his kind mentorship and guidance in assisting me with my final project.
His academic inputs provided me with insights that were invaluable for completing
this project.

I wish to express my deep gratitude and sincere thanks to ICICI BANK for providing
me their precious time to collect various kind of information..

PRIYANKA DHAMIJA

2
 EXECUTIVE SUMMARY

Private banking is a concept which is new and fast emerging in the world of banking
where changes have become a necessity in order for banks to survive in this
competitive environment vis-à-vis not only from the public and private sector banks
but also from the foreign banks. The objective of the research is to explore the various
products, which a private banker deals into and the systematic process involved to
match client requirements with the right kind of product.

Through this research one of the main objectives is to explore the reason why most of
the banks are injecting private banking as business profile to their set of service
offerings.

Though private banking evolved in late 80’s in Asia, in India its not more than 5 years
old. ICICI started it in Aug 2002 and since then it has been a remarkable success.
Today there are enormous solutions to cater client needs but what suits best to a client
is where private banking fits in. Every client will have different needs, liking and
preferences. So a customized portfolio for every client is the need of the day. This
research will highlight more on the product portfolio of ICICI Private Banking, how
they have changed or innovatively structured to be attractive and competitive.

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 TABLE OF CONTENTS

1. INTRODUCTION

 ABOUT INDUSTRY

2. RESEARCH METHODOLOGY

 RESEARCH OBJECTIVES

 RESEARCH DESIGN

 DATA SOURCES

o PRIMARY DATA

o SECONDARY DATA

 QUESTIONNAIRE DESIGN/ FORMULATION

o SAMPLE DESIGN

 LIMITATION

3. COMPANY PROFILE

4. SWOT ANALYSIS

 ABOUT ICICI

 MARKETING MIX (4P’S)

 CUSTOMER SATISFACTION

5. COMPARITIVE ANALYSIS

 DATA INTERPRETATION&ANALYSIS

4
6. FINDINGS

7. RECOMMENDATION

8. CONCLUSION

9. APPENDIX

 SAMPLE QUESTIONAIRE

10. BIBLIOGRAPHY

5
 INTRODUCTION

INTRODUCTION TO THE BANKING INDUSTRY IN INDIA

The banking section will navigate through all the aspects of the Banking System in
India. It will discuss upon the matters with the birth of the banking concept in the
country to new players adding their names in the industry in coming few years.

The banker of all banks, Reserve Bank of India (RBI), the Indian Banks Association
(IBA) and top 20 banks like IDBI, HSBC, ICICI, ABN AMRO, etc. has been well
defined under three separate heads with one page dedicated to each bank.

However, in the introduction part of the entire banking cosmos, the past has been well
explained under three different heads namely:

 History of Banking in India

 Nationalization of Banks in India

 Scheduled Commercial Banks in India

The first deals with the history part since the dawn of banking system in India.
Government took major step in the 1969 to put the banking sector into systems and it
nationalized 14 private banks in the mentioned year. This has been elaborated in
Nationalization Banks in India. The last but not the least explains about the scheduled
and unscheduled banks in India. Section 42 (6) (a) of RBI Act 1934 lays down the
condition of scheduled commercial banks. The descriptions along with a list of
scheduled commercial banks are given on this page.

6
 HISTORY OF BANKING IN INDIA

Without a sound and effective banking system in India it cannot have a healthy
economy. The banking system of India should not only be hassle free but it should be
able to meet new challenges posed by the technology and any other external and
internal factors.

For the past three decades India's banking system has several outstanding
achievements to its credit. The most striking is its extensive reach. It is no longer
confined to only metropolitans or cosmopolitans in India. In fact, Indian banking
system has reached even to the remote corners of the country. This is one of the main
reason of India's growth process.

The government's regular policy for Indian bank since 1969 has paid rich dividends
with the nationalization of 14 major private banks of India.

Not long ago, an account holder had to wait for hours at the bank counters for getting
a draft or for withdrawing his own money. Today, he has a choice. Gone are days
when the most efficient bank transferred money from one branch to other in two days.
Now it is simple as instant messaging or dial a pizza. Money have become the order
of the day.

The first bank in India, though conservative, was established in 1786. From 1786 till
today, the journey of Indian Banking System can be segregated into three distinct
phases. They are as mentioned below:

 Early phase from 1786 to 1969 of Indian Banks

 Nationalization of Indian Banks and up to 1991 prior to Indian banking sector

Reforms.

 New phase of Indian Banking System with the advent of Indian Financial &
Banking Sector Reforms after 1991.

7
To make this write-up more explanatory, I prefix the scenario as Phase I, Phase II and
Phase III.

PHASE I

The General Bank of India was set up in the year 1786. Next came Bank of Hindustan
and Bengal Bank. The East India Company established Bank of Bengal (1809), Bank
of Bombay (1840) and Bank of Madras (1843) as independent units and called it
Presidency Banks. These three banks were amalgamated in 1920 and Imperial Bank
of India was established which started as private shareholders banks, mostly
Europeans shareholders.

In 1865 Allahabad Bank was established and first time exclusively by Indians, Punjab
National Bank Ltd. was set up in 1894 with headquarters at Lahore. Between 1906
and 1913, Bank of India, Central Bank of India, Bank of Baroda, Canara Bank, Indian
Bank, and Bank of Mysore were set up. Reserve Bank of India came in 1935.

During the first phase the growth was very slow and banks also experienced periodic
failures between 1913 and 1948. There were approximately 1100 banks, mostly small.
To streamline the functioning and activities of commercial banks, the Government of
India came up with The Banking Companies Act, 1949 which was later changed to
Banking Regulation Act 1949 as per amending Act of 1965 (Act No. 23 of 1965).
Reserve Bank of India was vested with extensive powers for the supervision of
banking in India as the Central Banking Authority.

During those days public has lesser confidence in the banks. As an aftermath deposit
mobilization was slow. Abreast of it the savings bank facility provided by the Postal
department was comparatively safer. Moreover, funds were largely given to traders.

8
PHASE II

Government took major steps in this Indian Banking Sector Reform after
independence. In 1955, it nationalized Imperial Bank of India with extensive banking
facilities on a large scale specially in rural and semi-urban areas. It formed State Bank
of India to act as the principal agent of RBI and to handle banking transactions of the
Union and State Governments all over the country.

Seven banks forming subsidiary of State Bank of India was nationalized in 1960 on
19th July, 1969, major process of nationalization was carried out. It was the effort of
the then Prime Minister of India, Mrs. Indira Gandhi. 14 major commercial banks in
the country was nationalized.

Second phase of nationalization Indian Banking Sector Reform was carried out in
1980 with seven more banks. This step brought 80% of the banking segment in India
under Government ownership.

The following are the steps taken by the Government of India to Regulate Banking
Institutions in the Country:

 1949: Enactment of Banking Regulation Act.

 1955: Nationalization of State Bank of India.

 1959: Nationalization of SBI subsidiaries.

 1961: Insurance cover extended to deposits.

 1969: Nationalization of 14 major banks.

 1971: Creation of credit guarantee corporation.

 1975: Creation of regional rural banks.

 1980: Nationalization of seven banks with deposits over 200 crore.

After the nationalization of banks, the branches of the public sector bank India rose to
approximately 800% in deposits and advances took a huge jump by 11,000%.

9
Banking in the sunshine of Government ownership gave the public implicit faith and
immense confidence about the sustainability of these institutions.

PHASE III

This phase has introduced many more products and facilities in the banking sector in
its reforms measure. In 1991, under the chairmanship of M Narasimham, a committee
was set up by his name which worked for the liberalization of banking practices.

The country is flooded with foreign banks and their ATM stations. Efforts are being
put to give a satisfactory service to customers. Phone banking and net banking is
introduced. The entire system became more convenient and swift. Time is given more
importance than money.

The financial system of India has shown a great deal of resilience. It is sheltered from
any crisis triggered by any external macroeconomics shock as other East Asian
Countries suffered. This is all due to a flexible exchange rate regime, the foreign
reserves are high, the capital account is not yet fully convertible, and banks and their
customers have limited foreign exchange exposure.

10
NATIONALIZATION OF BANKS IN INDIA

The nationalization of banks in India took place in 1969 by Mrs. India Gandhi the
then prime minister. It nationalized 14 banks then. These banks were mostly owned
by businessmen and even managed by them.

 Central Bank of India

 Bank of Maharashtra

 Dena Bank

 Punjab National Bank

 Syndicate Bank

 Canara Bank

 Indian Bank

 Indian Overseas Bank

 Bank of Baroda

 Union Bank

 Allahabad Bank

 United Bank of India

 UCO Bank

 Bank of India

Before the steps of nationalization of Indian banks, only State Bank of India (SBI)
was nationalized. It took place in July 1955 under the SBI Act of 1955.
Nationalization of Seven State Banks of India (formed subsidiary) took place on 19th
July, 1960.

The State Bank of India is India's largest commercial bank and is ranked one of the
top five banks worldwide. It serves 90 million customers through a network of 9,000

11
branches and it offers -- either directly or through subsidiaries -- a wide range of
banking services.

The second phase of nationalization of Indian banks took place in the year 1980.
Seven more banks were nationalized with deposits over 200 crores. Till this year,
approximately 80% of the banking segment in India was under Government
ownership.

After the nationalization of banks in India, the branches of the public sector banks
rose to approximately 800% in deposits and advances took a huge jump by 11,000%.

 1955 : Nationalization of State Bank of India.

 1959 : Nationalization of SBI subsidiaries.

 1969 : Nationalization of 14 major banks.

 1980 : Nationalization of seven banks with deposits over 200 crores.

SCHEDULED COMMERCIAL BANKS IN INDIA

The commercial banking structure in India consists of:

 Scheduled Commercial Banks in India

 Unscheduled Banks in India

Scheduled Banks in India constitute those banks, which have been included in the
Second Schedule of Reserve Bank of India (RBI) Act, 1934. RBI in turn includes only
those banks in this schedule, which satisfy the criteria laid down, vide section 42 (6)
(a) of the Act.

As on 30th June, 1999, there were 300 scheduled banks in India having a total
network of 64,918 branches. The scheduled commercial banks in India comprise of
State bank of India and its associates (8), nationalized banks (19), foreign banks (45),
private sector banks (32), co-operative banks and regional rural banks.

12
"Scheduled banks in India" means the State Bank of India constituted under the State
Bank of India Act, 1955 (23 of 1955), a subsidiary bank as defined in the State Bank
of India (Subsidiary Banks) Act, 1959 (38 of 1959), a corresponding new bank
constituted under section 3 of the Banking Companies (Acquisition and Transfer of
Undertakings) Act, 1970 (5 of 1970), or under section 3 of the Banking Companies
(Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980), or any other bank
being a bank included in the Second Schedule to the Reserve Bank of India Act, 1934
(2 of 1934), but does not include a co-operative bank".

"Non-scheduled bank in India" means a banking company as defined in clause (c) of

section 5 of the Banking Regulation Act, 1949 (10 of 1949), which is not a scheduled
bank".

The following are the Scheduled Banks in India (Public Sector):

 State Bank of India

 State Bank of Bikaner and Jaipur

 State Bank of Hyderabad

 State Bank of Indore

 State Bank of Mysore

 State Bank of Patiala

 State Bank of Saurashtra

 State Bank of Travancore

 Andhra Bank

 Allahabad Bank

 Bank of Baroda

 Bank of India

13
  Bank of Maharashtra

 Canara Bank

 Central Bank of India

 Corporation Bank

 Dena Bank

 Indian Overseas Bank

 Indian Bank

 Oriental Bank of Commerce

 Punjab National Bank

 Punjab and Sind Bank

 Syndicate Bank

 Union Bank of India

 United Bank of India

 UCO Bank

 Vijaya Bank

The following are the Scheduled Banks in India (Private Sector):

 Vysya Bank Ltd

 UTI Bank Ltd

 Indusind Bank Ltd

 ICICI Banking Corporation Bank Ltd

 Global Trust Bank Ltd

 HDFC Bank Ltd

14
  Centurion Bank Ltd

 Bank of Punjab Ltd

 IDBI Bank Ltd

The following are the Scheduled Foreign Banks in India:

 American Express Bank Ltd.

 ANZ Gridlays Bank Plc.

 Bank of America NT & SA

 Bank of Tokyo Ltd.

 Banquc Nationale de Paris

 Barclays Bank Plc

 Citi Bank N.C.

 Deutsche Bank A.G.

 Hongkong and Shanghai Banking Corporation

 Standard Chartered Bank.

 The Chase Manhattan Bank Ltd.

15
BANKS IN INDIA

In India the banks are being segregated in different groups. Each group has their own
benefits and limitations in operating in India. Each has their own dedicated target
market. Few of them only work in rural sector while others in both rural as well as
urban. Many even are only catering in cities. Some are of Indian origin and some are
foreign players.

All these details and many more is discussed over here. The banks and its relation
with the customers, their mode of operation, the names of banks under different
groups and other such useful information’s are talked about.

One more section has been taken note of is the upcoming foreign banks in India. The
RBI has shown certain interest to involve more of foreign banks than the existing one
recently. This step has paved a way for few more foreign banks to start business in
India.

Major Banks in India

 ABN-AMRO Bank  Indian Overseas Bank

 Abu Dhabi Commercial Bank  IndusInd Bank
 American Express Bank  ING Vysya Bank
 Andhra Bank  Jammu & Kashmir Bank
 Allahabad Bank  JPMorgan Chase Bank
 Bank of Baroda  Karnataka Bank
 Bank of India  Karur Vysya Bank
 Bank of Maharastra  Laxmi Vilas Bank
 Bank of Punjab  Oriental Bank of Commerce
 Bank of Rajasthan  Punjab National Bank
 Bank of Ceylon  Punjab & Sind Bank
 BNP Paribas Bank  Scotia Bank
 Canara Bank  South Indian Bank
 Catholic Syrian Bank  Standard Chartered Bank
 Central Bank of India  State Bank of India (SBI)

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  State Bank of Bikaner & Jaipur
 Centurion Bank
 State Bank of Hyderabad
 China Trust Commercial Bank
 State Bank of Indore
 Citi Bank
 State Bank of Mysore
 City Union Bank
 State Bank of Saurastra
 Corporation Bank
 State Bank of Travancore
 Dena Bank
 Syndicate Bank
 Deutsche Bank
 Taib Bank
 Development Credit Bank
 UCO Bank
 Dhanalakshmi Bank
 Union Bank of India
 Federal Bank
 United Bank of India
 HDFC Bank
 United Bank Of India
 HSBC ICICI Bank
 United Western Bank
 IDBI Bank
 UTI Bank
 Indian Bank
 Vijaya Bank

17
FACT FILES OF BANKS IN INDIA

The first, the oldest, the largest, the biggest, get all such types of
information’s about Banking in India in this section.

The first bank in India to be given an ISO Certification Canara Bank

The first bank in Northern India to get ISO 9002 certification for Punjab and Sind
their selected branches Bank

Punjab National
The first Indian bank to have been started solely with Indian capital
Bank

The first among the private sector banks in Kerala to become a

South Indian Bank
scheduled bank in 1946 under the RBI Act

India's oldest, largest and most successful commercial bank,

offering the widest possible range of domestic, international and
State Bank of India
NRI products and services, through its vast network in India and
overseas

India's second largest private sector bank and is now the largest The Federal Bank
scheduled commercial bank in India Limited

Bank which started as private shareholders banks, mostly Imperial Bank of

Europeans shareholders India

The first Indian bank to open a branch outside India in London in Bank of India,
1946 and the first to open a branch in continental Europe at Paris in founded in 1906 in
1974 Mumbai

The oldest Public Sector Bank in India having branches all over
Allahabad Bank
India and serving the customers for the last 132 years

18
The first Indian commercial bank which was wholly owned and Central Bank of
managed by Indians India

Bank of India was founded in 1906 in Mumbai. It became the first Indian bank to
open a branch outside India in London in 1946 and the first to open a branch in
continental Europe at Paris in 1974.

19
PUBLIC SECTOR BANKS

Among the Public Sector Banks in India, United Bank of India is one of the 14 major
banks, which were nationalized on July 19, 1969. Its predecessor, in the Public Sector
Banks, the United Bank of India Ltd., was formed in 1950 with the amalgamation of
four banks viz. Comilla Banking Corporation Ltd. (1914), Bengal Central Bank Ltd.
(1918), Comilla Union Bank Ltd. (1922) and Hooghly Bank Ltd. (1932).

Oriental Bank of Commerce (OBC), Government of India Undertaking offers

Domestic, NRI and Commercial banking services. OBC is implementing a
GRAMEEN PROJECT in Dehradun District (UP) and Hanumangarh District
(Raiasthan) disbursing small loans. This Public Sector Bank India has implemented
14 point action plan for strengthening of credit delivery to women and has designated
5 branches as specialized branches for women entrepreneurs.

The following are the list of Public Sector Banks in India

 Allahabad Bank

 Andhra Bank

 Bank of Baroda

 Bank of India

 Bank of Maharastra

 Canara Bank

 Central Bank of India

 Corporation Bank

 Dena Bank

 Indian Bank

20
  Indian Overseas Bank

 Oriental Bank of Commerce

 Punjab & Sind Bank

 Punjab National Bank

 Syndicate Bank

 UCO Bank

 Union Bank of India

 United Bank of India

 Vijaya Bank

List of State Bank of India and its subsidiary, a Public Sector Banks

 State Bank of India

o State Bank of Bikaner & Jaipur

o State Bank of Hyderabad

o State Bank of Indore

o State Bank of Mysore

o State Bank of Saurastra

o State Bank of Travancore

21
PRIVATE SECTOR BANKS

Private banking in India was practiced since the beginning of banking system in India.
The first private bank in India to be set up in Private Sector Banks in India was
IndusInd Bank. It is one of the fastest growing Bank Private Sector Banks in India.
IDBI ranks the tenth largest development bank in the world as Private Banks in India
and has promoted a world class institutions in India.

The first Private Bank in India to receive an in principle approval from the Reserve
Bank of India was Housing Development Finance Corporation Limited, to set up a
bank in the private sector banks in India as part of the RBI's liberalization of the
Indian Banking Industry. It was incorporated in August 1994 as HDFC Bank Limited
with registered office in Mumbai and commenced operations as Scheduled
Commercial Bank in January 1995.

ING Vysya, yet another Private Bank of India was incorporated in the year 1930.
Bangalore has a pride of place for having the first branch inception in the year 1934.
With successive years of patronage and constantly setting new standards in banking,
ING Vysya Bank has many credits to its account.

LIST OF PRIVATE BANKS IN INDIA

 Bank of Punjab

 Bank of Rajasthan

 Catholic Syrian Bank

 Centurion Bank

 City Union Bank

 Dhanalakshmi Bank

 Development Credit Bank

22
 Federal Bank

 HDFC Bank

 ICICI Bank

 IDBI Bank

 IndusInd Bank

 ING Vysya Bank

 Jammu & Kashmir Bank

 Karnataka Bank

 Karur Vysya Bank

 Laxmi Vilas Bank

 South Indian Bank

 United Western Bank

 UTI Bank

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 RESEARCH OBJECTIVES

 To study about ICICI as a company and a group

 To study about the products and services offered by ICICI

 To study the customer satisfaction in ICICI bank

24
 RESEARCH METHODOLOGY

DATA COLLECTION TECHNIQUES

This project consists of two parts.

The first part is a study of the banking industry, ICICI Bank using secondary data
sources. This secondary information has been sourced from the internet and from
business related magazines and newspapers.

The second part of the study has been done using an exploratory research process and
a structured questionnaire was developed for this purpose. For the collection of
primary data this was the only method used. The reason I used this method is
because a need was felt for the free influx of information about the products. Also this
method allowed the use of skills gained in class.

SAMPLE DESIGN

The population considered for the purpose of the survey was people residing in Delhi
and the National Capital Region (NCR).

SAMPLING TECHNIQUE USED

Since the information required was not of a very technical nature and also looking at
the scope of the project and the extent of the target segment, the sampling technique
employed was Convenience Sampling. I administered the questionnaires.

SAMPLE SIZE

I have restricted the sample size to 200 respondents. This was done keeping in mind
the time constraints and the fact that I felt that this number would be enough to serve
the information needs required to show the trends.

25
 COMPANY PROFILE

ICICI BANK

OVERVIEW

ICICI Bank (formerly Industrial Credit and Investment Corporation of India).

ICICI Limited, was established in 1955 by the World Bank, the Government of

India and the Indian Industry, for the promotion of industrial development in India by
giving project and corporate finance to the industries in India.

ICICI Bank has grown from a development bank to a financial conglomerate and has
become one of the largest public financial institutions in India. ICICI Bank has
financed all the major sectors of the economy, covering 6,848 companies and 16,851
projects. As of March 31, 2000, ICICI had disbursed a total of Rs.1,13,070 crores,
since inception.

ICICI BANK FACT FILES

Total assets: Rs.146,214 crore (December 31, 2004)

Network: 530 branches

ATMs: Over 1,880

Abroad Subsidiaries: United Kingdom and Canada

Abroad branches: Singapore and Bahrain

Representative offices: United States, China, United Arab Emirates, and Bangladesh
And South Africa.

ICICI Bank is India's second-largest bank with total assets of about Rs. 2,513.89 bn
(US$ 56.3 bn) at March 31, 2006 and profit after tax of Rs. 25.40 bn (US$ 569 mn)
for the year ended March 31, 2006 (Rs. 20.05 bn (US$ 449 mn) for the year ended

26
March 31, 2005). ICICI Bank has a network of about 614 branches and extension
counters and over 2,200 ATMs. ICICI Bank offers a wide range of banking products
and financial services to corporate and retail customers through a variety of delivery
channels and through its specialized subsidiaries and affiliates in the areas of
investment banking, life and non-life insurance, venture capital and asset
management. ICICI Bank set up its international banking group in fiscal 2002 to cater
to the cross border needs of clients and leverage on its domestic banking strengths to
offer products internationally.

ICICI Bank currently has subsidiaries in the United Kingdom, Russia and Canada,
branches in Singapore, Bahrain, Hong Kong, Sri Lanka and Dubai International
Finance Center and representative offices in the United States, United Arab Emirates,
China, South Africa and Bangladesh. Our UK subsidiary has established a branch in
Belgium. ICICI Bank is the most valuable bank in India in terms of market
capitalization.

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

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

At June 5, 2006, ICICI Bank, with free float market capitalization* of about Rs.
480.00 billion (US$ 10.8 billion) ranked third amongst all the companies listed on the
Indian stock exchanges.

ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial
Institution, and was its wholly owned subsidiary. ICICI's shareholding in ICICI Bank
was reduced to 46% through a public offering of shares in India in fiscal 1998, an
equity offering in the form of ADRs listed on the NYSE in fiscal 2000, ICICI Bank's
acquisition of Bank of Madura Limited in an all-stock amalgamation in fiscal 2001,

27
and secondary market sales by ICICI to institutional investors in fiscal 2001 and fiscal
2002. ICICI was formed in 1955 at the initiative of The World Bank, the Government
of India and representatives of Indian industry.

The principal objective was to create a development financial institution for Providing
medium-term and long-term project financing to Indian businesses. In the 1990s,
ICICI transformed its business from a development financial institution offering only
project finance to a diversified financial service group offering a wide variety of
products and services, both directly and through a number of subsidiaries and
affiliates like ICICI Bank. In 1999, ICICI become the first Indian company and the
first bank or financial institution from non-Japan Asia to be listed on the NYSE.

After consideration of various corporate structuring alternatives in the context of the

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

October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger
of ICICI and two of its wholly owned retail finance subsidiaries, ICICI Personal
Financial Services Limited and ICICI Capital Services Limited, with ICICI Bank. The
merger was approved by shareholders of ICICI and ICICI Bank in January 2002, by

28
the High Court of Gujarat at Ahmedabad in March 2002, and by the High Court of
Judicature at Mumbai and the Reserve Bank of India in April 2002. Consequent to the
merger, the ICICI group's financing and banking Operations, both wholesale and
retail, have been integrated in a single entity.

*Free float holding excludes all promoter holdings, strategic investments and Cross
holdings among public sector entities.

29
 ICICI GROUP

ICICI VENTURE

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, India’s 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.

30
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 companies.
A significant portion of the fund’s corpus is also from International development
financial institutions and international funds.

The company has over 40 qualified professionals with experience across sectors and
functions. The capabilities of the team, structure of the organization, Emphasis on
value creation and performance evaluation matrices enable ICICI Venture to extract
superior returns from its investments.

ICICI SECURITIES – INDIA’S LEADING INVESTMENT BANK

ICICI Securities Limited is India’s leading full service investment bank with a
Dominant position in all segments of its operations - Corporate Finance, Fixed
Income and Equities. It is a subsidiary of ICICI Bank, the largest private sector bank
in India and operates out of Mumbai with offices in New Delhi, Chennai, Kolkata,
New York, London and Singapore. Under the able leadership of Mr.S Mukherji,
Managing Director and CEO, ICICI Securities continues to grow as reflected in its
performance over the past couple of years.

The Corporate Finance team has consistently been among the top players in M&As
and fund raising from domestic and international capital markets. The Equities team is
a major Indian brokerage house and its research covers over 90% of Sensex market
capitalization. The bond research of the Fixed Income team is a benchmark for the
industry.

The eminent position of ICICI Securities is reflected in the number of awards that our
teams in the Fixed Income, M&A and Equity Capital Markets win. Our Fixed Income
team for the last two years (CY04 and CY05) has been adjudged as the “Best Bond

31
House” in India by both Asia money and Finance Asia. The Equities team was
adjudged as the ‘Best Indian Brokerage House-2003’ by Asia money. The Corporate
Finance team tops the M&A/Capital markets league tables regularly. Our wholly
owned subsidiary, ICICI Brokerage Services Limited (IBSL), buys and sells equities
for our institutional clients. ICICI Securities has a U.S. subsidiary, ICICI Securities
Inc., which is a member of the National Association of Securities Dealers, Inc.
(NASD). As a result of this membership, ICICI Securities Inc. can engage in
permitted activities in the U.S. securities markets.

These activities include dealing in securities markets transactions in the United States
and providing research and investment advice to US investors.

ICICI Securities Inc. is also registered with the Financial Services Authority, UK
(FSA) and the Monetary Authority of Singapore (MAS) to carry out Corporate
Advisory Services

PRUDENTIAL ICICI

Prudential ICICI Asset Management Company enjoys the strong parentage of

Prudential plc, one of UK's largest players in the insurance & fund management
sectors and ICICI Bank, a well-known and trusted name in financial services in India.
Prudential ICICI Asset Management Company, in a span of just over eight years, has
forged a position of pre-eminence in the Indian Mutual Fund industry as one of the
largest asset management companies in the country with assets under management of
Rs. 23559.60 crores (as of March 31, 2006). The Company manages a comprehensive
range of schemes to meet the varying investment needs of its investors spread across
68 cities in the country.

PRUDENTIAL LIFE INSURANCE

India's Number One private life insurer, ICICI Prudential Life Insurance Company is
a joint venture between ICICI Bank-one of India's foremost financial services
companies-and Prudential plc- a leading international financial services group

32
headquartered in the United Kingdom. Total capital infusion stands at Rs. 15.85
billion, with ICICI Bank holding a stake of 74% and Prudential plc holding 26%.

We began our operations in December 2000 after receiving approval from Insurance
Regulatory Development Authority (IRDA). Today, our nation-wide team comprises
nearly 120,000 insurance advisors, 18 banc assurance partners and 200 corporate
agent tie-ups.

ICICI Prudential was the first life insurer in India to receive a National Insurer
Financial Strength rating of AAA (Ind) from Fitch ratings. For three years in a row,
ICICI Prudential has been voted as India's Most Trusted Private Life Insurer, by The
Economic Times - AC Nielsen ORG Marg survey of 'Most Trusted Brands'. As we
grow our distribution, product range and customer base, we continue to tirelessly
uphold our commitment to deliver world-class financial solutions to customers all
over India.

ICICI LOMBARD

ICICI Lombard General Insurance Company Limited is a 74:26 joint venture between
ICICI Bank Limited and the US-based $ 26 billion Fairfax Financial Holdings
Limited. ICICI Bank is India's second largest bank, while Fairfax Financial Holdings
is a diversified financial corporate engaged in general insurance, reinsurance,
insurance claims management and investment management. Lombard Canada Ltd, a
group company of Fairfax Financial Holdings Limited, is one of Canada's oldest
property and casualty insurers. ICICI Lombard General Insurance Company received
regulatory approvals to commence general insurance business in August 2001.

33
WHY ICICI LOMBARD?

 India 's number one private general insurance company

 First general insurance company in India to be ISO 9001:2000 certified

 Assigned the iAAA rating by ICRA indicating highest claims paying ability

 Simple and fast documentation

 Lightning fast claims settlement

 Instant online policy issuance

 Comprehensive product line

 Highest security level offered through 128-bit encryption in case of online

data exchange

 First company to provide digitally signed documents through an online

interface

34
  Achieved financial breakeven in first full year of operations

 Achieved underwriting breakeven in second year of operations

 Adjudged amongst the top three in the Insurance Website of the Year
category at the 9th Asia Insurance Industry Awards function held in
Singapore during September, 2005

WHAT IS MARKETING?

Most people think that marketing is only about the advertising and/or personal selling
of goods and services. Advertising and selling, however, are just two of the many
marketing activities. In general, marketing activities are all those associated with
identifying the particular wants and needs of a target market of customers, and then
going about satisfying those customers better than the competitors? This involves
doing market research on customers, analyzing their needs, and then making strategic
decisions about product design, pricing, promotion and distribution.

:"Marketing is the process of planning and executing the conception, pricing,

promotion, and distribution of ideas, goods, services, organizations, and events to
create and maintain relationships that will satisfy individual and organizational
objectives." by Boone and Kurtz. Dryden Press.

In popular usage, "marketing" is the promotion of products, especially advertising and

branding. However, in professional usage the term has a wider meaning which
recognizes that marketing is customer centered. Products are often developed to meet
the desires of groups of customers or even, in some cases, for specific customers. E.

35
Jerome McCarthy divided marketing into four general sets of activities. His typology
has become so universally recognized that his four activity sets, the Four Ps, have
passed into the language

36
 THE MARKETING MIX
(The 4 P's of Marketing)

Marketing decisions generally fall into the following four controllable

categories:

 Product

 Price

 Place (distribution)

 Promotion

The marketing mix approach to marketing is a model of crafting and

implementing marketing strategies. It stresses the "mixing" or blending of
various factors in such a way that both organizational and consumer (target
markets) objectives are attained. The model was developed by Neil Borden
(Borden, N. 1964) who first started using the phrase in 1949. Borden claims the
phrase came to him while reading James Culliton's description of the activities
of a business executive:

(An executive is) "a mixer of ingredients, who sometimes follows a

recipe as he goes along, sometimes adapts a recipe to the ingredients
immediately available, and sometimes experiments with or invents
ingredients no one else has tried." (Culliton, J. 1948)

When blending the mix elements, marketer(s) must consider their target market. They
must understand the wants and needs (see Maslow) of the market (customer) then use
these mix elements in constructing (formulating) appropriate marketing strategies and
plans that will satisfy these wants. The mix must also meet or exceed the objectives of
the organization. As Borden put it,"When building a marketing program to fit the

37
needs of his firm, the marketing manager has to weigh the behavioral forces and then
juggle marketing elements in his mix with a keen eye on the resources with which he
has to work.". A separate marketing mix is usually crafted for each product offering or
for each market segment, depending on the organizational structure of the firm.
Borden goes on to suggest a procedure for developing a marketing mix. He claims
that you need two sets of information; a list of important elements that go into the
mix, and a list of forces that influence these decision variables

The term "marketing mix" became popularized after Neil H. Borden published his
1964 article, The Concept of the Marketing Mix. Borden began using the term in his
teaching in the late 1940's after James Culliton had described the marketing manager
as a "mixer of ingredients". The ingredients in Borden's marketing mix included
product planning, pricing, branding, distribution channels, personal selling,
advertising, promotions, packaging, display, servicing, physical handling, and fact-
finding and analysis. E. Jerome McCarthy later grouped these ingredients into the four
categories that today are known as the 4 P's of marketing, depicted below:

These four P's are the parameters that the marketing manager can control, subject to
the internal and external constraints of the marketing environment. The goal is to
make decisions that center the four P's on the customers in the target market in order
to create perceived value and generate a positive response.

PRODUCT

A good product makes it’s marketing by itself because it gives benefits to the
customer. We differentiate product on the basis of design, features, packaging,
services, warranties, return and so on. In general, differentiation is mainly
related to:

The design: it can be a decisive advantage but it changes with fads. For
example, a fun board must offer a good and fashionable design adapted to
young people.

38
The packaging: It must provide a better appearance and a convenient use. In
food business, products often differ only by packaging.

The safety: It does not concern fun board but it matters very much for products
used by kids.

The "green": A friendly product to environment gets an advantage among

some segments.

Therefore, term "product" refers to tangible, physical products as well as services.

Here are some examples of the product decisions to be made:

 Brand name

 Functionality

 Styling

 Quality

 Safety

 Packaging

 Repairs and Support

 Warranty

 Accessories and services

PRICE DECISIONS

Price means the pricing strategy you will use. You have already fixed, as an
hypothesis a customer price fitted to your customer profile but you will have
now to bargain it with the wholesalers and retailers.

Pricing strategies you have to choose between three strategies:

Competitive pricing: If your product is sold at the lowest price regarding all your
competitors, you are practicing competitive pricing. Sometimes, competitive pricing

39
is essential. For instance, when the products are basically the same, this strategy will
usually succeed.

Remember that the success of competitive pricing strategy depends on achieving high
volume and low costs. If your prices are lower than your costs, you are going straight
to bankruptcy! To avoid such a mistake, you have to take notice of the break-even
ratio that you will find below.

Cost-plus-profit: It means that you add the profit you need to your cost. It is
also called cost-orientated strategy and is mainly used by the big contractor of
public works. The authority may have access to the costing data and should like
to check if the profit added to the cost is not too high. In fact, this strategy is
only good for a business that the customers are public collectivities or
government agencies.

Value pricing: It means that you base your prices on the value you deliver to
customers. For example, when a new technology has a very large success, you
can charge high prices to the customer. This practice is also called skimming.
It is easy when you are in the introductory phase of the product life cycle.

Some examples of pricing decisions to be made include:

 Pricing strategy (skim, penetration, etc.)

 Suggested retail price

 Volume discounts and wholesale pricing

 Cash and early payment discounts

 Seasonal pricing

 Bundling

 Price flexibility

 Price discrimination

40
DISTRIBUTION (PLACE) DECISIONS

Selling to the customers: Whether you sell by yourself ( as retailer) whether

you employ a sales force, you are in these cases in front of the final customer.
There are not intermediaries between you and him. Unfortunately, except for
the retailer business, this situation is far to be the general case.

Distribution is about getting the products to the customer. Some examples of

distribution decisions include:

 Distribution channels

 Market coverage (inclusive, selective, or exclusive distribution)

 Specific channel members

 Inventory management

 Distribution centers

 Order processing

 Transportation

PROMOTION DECISIONS

In the context of the marketing mix, promotion represents the various aspects
of marketing communication, that is, the communication of information about
the product with the goal of generating a positive customer response.
Marketing communication decisions include:

 Promotional strategy (push, pull, etc.)

 Advertising

 Personal selling & sales force

 Sales promotions

 Public relations & publicity

 Marketing communications budget

41
Advertising, public relations and so on are included in promotion and
consequently in the 4Ps. sometimes, packaging becomes a fifth P. As promotion
is closely linked to the sales, I will mention here the most common features
about the sale strategy.

The function of promotion is to affect the customer behavior in order to close a

sale. Of course, it must be consistent with the buying process described in the
consumer analysis. Promotion includes mainly three topics: advertisement,
public relations, and sales promotions.

ADVERTISEMENT:

It takes many forms: TV, radio, Internet, newspapers, yellow pages, and so on.
You have to take notice about three important notions:

 Reach is the percentage of the target market, which is affected by your

advertisement. For example, if you advertise on radio you must know how
many people belonging to your segment can be affected.

 Frequency is the number of time a person is exposed to your message. It is

said that a person must be exposed seven times to the message before to be
aware of it. Reach*frequency gives the gross rating point. You have to
evaluate it before any advertisement campaign.

 Message: Sometimes, it is called a creative. Anyway, the message must: get

attraction, capture interest, create desire and finally require action that is to
say close the sale.

42
PUBLIC RELATIONS:

Public relations are subtler and rely mainly on your own personality. For
example, you can deliver public speeches on subjects such as economics, geo-
economics, futurology to several organizations (civic groups, political groups,
fraternal organizations, professional associations)

SALES PROMOTION

It includes fair trades, coupons, and discounts and is linked to the sales strategy.

43
 SUMMARY

The four Ps, product, place, price and promotion are the elements of the
marketing mix used to establish a detailed and final marketing plan.

After the product which is a paramount, the place is very important because it
describes how you reach the consumer and what distribution channel you are
going to choose: Margins and image are quite important features in this matter.

According to your product and place, the pricing strategy will have heavy
consequences on the promotion campaign and on success or failure of your
business as a whole.

44
 LIMITATIONS OF THE MARKETING
MIX FRAMEWORK

The marketing mix framework was particularly useful in the early days of the
marketing concept when physical products represented a larger portion of the
economy. Today, with marketing more integrated into organizations and with a wider
variety of products and markets, some authors have attempted to extend its usefulness
by proposing a fifth P, such as packaging, people, process, etc. Today however, the
marketing mix most commonly remains based on the 4 P's. Despite its limitations and
perhaps because of its simplicity, the use of this framework remains strong and many
marketing textbooks have been organized around it.

PRODUCT

ICICI Bank offers wide variety of Deposit 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 deposit products and provide your details online
and our representative will contact you for Account Opening.

45
SAVING ACCOUNTS

ICICI Bank offers you a power packed Savings Account with a host of
convenient features and banking channels to transact through. So now you can
bank at your convenience, without the stress of waiting in queues

SENIOR CITIZEN SERVICES

We understand that as you reach the age to retire, you do have certain concerns
whether your hard earned money is safe and secure … whether your
investments give you the kind of returns that you need. That's why we have an
ideal Banking 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 your life.

46
YOUNG STARS

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 we make
banking a pleasure and at the same time children learn how to manage their
personal finances.

FIXED DEPOSITS

Safety, Flexibility, Liquidity and Returns!!!! A combination of unbeatable

features of the Fixed Deposit from ICICI Bank

47
RECURRING DEPOSITS

When expenses are high, you may not have adequate funds to make big
investments. But simply going ahead without saving for the future is not an
option for you. Through ICICI Bank Recurring Deposit you can invest small
amounts of money every month that ends up with a large saving on maturity.
So you enjoy twin advantages- affordability and higher earnings

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 LOAN

48
 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 up to Rs. 15
lakhs

CAR LOANS

 The NO 1 financier for car loans in the country. Network of more than 1500
channel partners in over 780 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.

49
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

TWO WHEELER LOANS

 Avail attractive schemes at competitive interest rates from the No 1 Financier for
Two Wheeler Loans in the country. 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. Ride home on your Dream Two Wheeler with
our hassle free finance.

50
FARM EQUIPMENT LOANS

 Preferred financier for almost all leading tractor manufacturers in the country.
Flexible repayment options in tandem with the farmer's seasonal liquidity.
Monthly, Quarterly and Half-yearly repayment patterns to choose from.
Comfortable repayment tenures from 1 year to 9 year

CARDS

ICICI Bank offers a variety of cards to suit your different transactional needs.
Our range includes Credit Cards, Debit Cards and Prepaid cards. These cards
offer you convenience for your financial transactions like cash withdrawal,
shopping and travel. These cards are widely accepted both in India and abroad.
Read on for details and features of each.

CREDIT CARDS

ICICI Bank Credit Cards give you the facility of cash, convenience
and a range of benefits, anywhere in the world. These benefits range
from life time free cards, Insurance benefits, global emergency
assistance service, discounts, utility payments, travel discounts and
much more.

51
DEBIT CARDS

The ICICI Bank Debit Card is a revolutionary form of cash that

allows customers to access their bank account around the clock,
around the world. The ICICI Bank Debit Card can be used for
shopping at more than 100,000 merchants in India and 13 million merchants

worldwide.

TRAVEL CARD

Presenting ICICI Bank Travel Card. The Hassle Free way to

Travel the world. Traveling with US Dollar, Euro, Pound
Sterling or Swiss Francs; Looking for security and convenience;
take ICICI Bank Travel Card. Issued in duplicate. Offers the Pin based security.
Has the convenience of usage of Credit or Debit card.

PRE PAID CARDS

 ICICI Bank brings to you a complete bouquet of pre-paid cards providing

payment solutions at your fingertips. ICICI Bank pre-paid cards are a safe
& convenient way for associate payments, disbursements, gifting & small
ticket transactions. Pre-paid cards are available on a VISA platform thus
providing accessibility to over one lakh merchant establishments & cash
withdrawal from all VISA ATMs in India.

52
INVESTMENTS

At ICICI Bank, we care about all your needs. Along with Deposit products and
Loan offerings, ICICI Bank assists you to manage your finances by providing
various investment options ranging from ICICI Bank Tax Saving Bonds to
Equity Investments through Initial Public Offers and Investment in Pure Gold.
ICICI Bank facilitates following investment products:

 ICICI Bank Tax Saving Bonds

 Government of India Bonds

 Investment in Mutual Funds

 Initial Public Offers by Corporate

 Investment in "Pure Gold"

 Foreign Exchange Services

 Senior Citizens Savings Scheme, 2004

You can invest in above products through any of our branches. For select
products ICICI Bank also provides the ease of investing through electronic
channels like ATMs and Internet (ICICIdirect.com)

53
DEMAT SERVICES

ICICI Bank Demat Services boasts of an ever-growing customer base of over

11.5 lacs account holders. In our continuous endeavor to offer best of the class
services to our customers we offer the following features:

e-Instructions: You 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", you can also transfer or pledge instructions through our customer care
officer.

Consolidation Demat Account: Dematerialize your physical shares in various

holding patterns and consolidate all such scattered holdings into your primary demat
account at reduced cost

Digitally Signed Statement: Receive your account statement and bill by email.

Corporate Benefit Tracking: Track your dividend, interest, bonus through your
account statement.

Mobile Request: Access your demat account by sending SMS to enquire about
Holdings, Transactions, Bill & ISIN details

Mobile Alerts: Receive SMS alerts for all debits/credits as well as for any request,
which cannot be processed

Dedicated customer care executives specially trained at our call center, to handle
all your queries.

Countrywide network of over 235 branches, you are never far from an ICICI Bank
Demat Services outlet

54
PRIVATE BANKING

The chosen few know that the secret to success in life is living it. To the fullest on
your terms. Then life's luxuries follow naturally at home, at work, at play. Not as an
exception, but as the rule. At ICICI Bank, we believe, it should be the same when it
comes to banking. A world where talented people, synchronized processes and
innovative products come together to create seamless global banking solutions.
Solutions that go beyond wealth management. Solutions that are uniquely tailored to
your specific needs.

PRICE

Growth due to increase in advances, net interest income

The numbers

Total income was Rs 6,316.19 crore in the first quarter from Rs 4,206.49 crore.
The Net Interest Income (NII) of the bank increased by 52 per cent to Rs 1,475 crore
from Rs 969 crore. Other income also rose to Rs 1,277.56 crore from Rs 1,090.5
crore.

The net profit of ICICI Bank, the largest private sector bank in the country, increased
17 per cent to Rs 620.01 crore in the quarter ended June 30, 2006, from Rs 530.01
crore in the same quarter last fiscal. The growth in profit was mainly on account of
increase in advances and the consequent rise in the net interest income. Total income
was up at Rs 6,316.19 crore in the first quarter from Rs 4,206.49 crore.

55
The net interest income (NII) of the bank increased by 52 per cent to Rs 1,475 crore
from Rs 969 crore. Other income also rose to Rs 1,277.56 crore from Rs 1,090.5
crore.
Ms Kalpana Morparia, Joint Managing Director, said the increase in NII and fee
income was offset by a fall in treasury income and higher provisioning. While fee
income rose by 50 per cent to Rs 985 crore from Rs 658 crore, treasury earnings fell
to Rs 88 crore from Rs 183 crore. Total expenditure increased to Rs 5,084.83 crore
from Rs 3,235.71 crore. Provisions and contingencies increased by 62 per cent to Rs
482.78 crore (Rs 297.88 crore). Ms Morparia said the increase in provision was purely
a function of higher level of general provision after the Reserve Bank of India
increased the risk weight age on standard assets. The bank's net interest margin for the
quarter was 2.5 per cent, marginally down from 2.6 per cent. This was despite little or
no securitisation in the first quarter, due the change in the guidelines, she said. "Re-
pricing of loan products has helped the bank to maintain the margin. But the full
effect of it will come from the second quarter," she said. ICICI Bank raised rates on
retail and corporate loans and its benchmark prime-lending rate by 50 basis points in
June 2006. Total advances increased by 50 per cent to Rs 1,47,184 crore (Rs 97,909
crore). Retail advances increased by 59 per cent to Rs 98,687 crore (Rs 62,063 crore).
Retail assets constitute 67 per cent of advances. Total deposits increased by 61 per
cent to Rs 1,83,006 crore (Rs 1,13,778 crore)

56
PROMOTION

In recent times, many banks have unveiled a slew of attractive schemes, loans, special
accounts and credit cards customized for women. Citibank and ICICI Bank's
`Woman's Account'

Women comprise an integral part of our client profile," explains Girish Kundan,
Branch Manager at ICICI, Nehru Place, and New Delhi.

ICICI's Women's Account allows one to deposit small sums in the form of a recurring
deposit. What differentiate it from normal savings account is the value-added features.
For the recurring deposit the minimum amount is Rs 500, against the normative Rs
1,000. Also, there are no tax deductions at source on the recurring deposit

57
ICICI Bank ropes in Shah Rukh Khan

ICICI Bank has once again decided to resort to the

celebrity endorsement route to promote its brand. Almost
two-and-a-half years since superstar Amitabh Bachchan
endorsed the brand, the company has signed up Shah
Rukh Khan as its global ambassador. In a press release issued by the bank, Mr K.V.
Kamath, Managing Director and CEO, ICICI Bank, said, "We are proud to have Shah
Rukh Khan as our global brand ambassador. Having established our leadership in the
retail business over the last five years, the bank is now poised to scale new heights in
the global arena." Ms Lalita D. Gupte, Joint Managing Director, ICICI Bank, said,
"ICICI Bank is happy to be associated with Shah Rukh Khan whose increasing global
popularity brings synergy to our growing global presence". ICICI Bank has a presence
in 12 countries including the UK, Canada, the US and West Asia.

ICICI Bank plans new-age ATMs for rural markets

ICICI Bank proposes to modify the technology behind ATMs

that determines how the money-dispensing machine works. A
project taken up in association with IIT, Chennai is looking at
ways of dealing with a host of critical issues that may seem
pretty run-of-the-mill in an urban neighborhood but insurmountable in a typical
Indian village. Dr Nachiket Mor, Deputy MD of ICICI Bank, is working towards
introducing futuristic machines as part of its plan to reach out to more customer
segments, especially those in non-metros.

New machines the new machines are likely to have security features not found in the
ones commonly used. These may be able to recognize old, used notes as well. It is not
known at this stage as to how many of such machines may be rolled out. ICICI Bank
has already installed many new ATMs in the recent past as part of its programmed to
provide greater off-site access to customers. The idea is to allow more people to use

58
ATMs - which would eliminate their need to physically visit bank branches. "The
technology we plan to use here is smarter. The plan is to overcome what is proving to
be a major challenge for some of our customers," said Dr Mor.”

PLACE

MONITORING

The Banking Codes and Standards Board of India whose directors include members
of the Governing Council monitor the Code. The contact details are as follows:

The Banking Codes and Standards Board of India

Reserve Bank of India Building,

C-7 , 4th floor , Bandra Kurla Complex,

Mumbai-400051

Telephone: 26573716 ; Fax: 26573719

Email : ceo.bcsbi@rbi.org.in ; Website: www.bcsbi.org.in

Getting Help

If you have any enquiries about the Code, you should contact us at our designated
telephone helpdesk or customer service number or contact the Indian Banks’
Association at the following address.

Indian Banks' Association

Stadium House, Block II & III

Veer Nariman Road, Mumbai 400 020

Tel. No. 022-22844999 Fax: 022-22835638

Email: ibastadium@vsnl.net Website: www.iba.org.in

59
Main Branches Of ICICI Bank

Reach us around the clock

Visit us at email us at call us at our 24hr ph no’s fax us at

write to us at

www.icicibank.com customer.care@icicibank.com (number below)

022-28307700 20, banjara hills

p.o, hyderabad

500034, India

24 hour customer care no’s

 Ahemdabad 5530 9890

 Banglore 41131877
 Coimbatore 1800 345 3499
 Chandigarh 505 5700
 Chennai 4208 8000
 Delhi Mobile 9818178000
 Cuttack 1800 345 3499
 Delhi 4171 8000
 Hyderabad 2312 8000
 Darjeeling 1800 345 3499
 Guwahati 1800 345 3499
 Kochi 238 4500
 Indore 402 2005
 jamshedpur 1800 345 3499
 Mumbai 2830 7777
 Kolkata 98313 78000
 lucknow 229 4577
 Ranchi 1800 345 3499
 Patna 1800 345 3499
 pune 2610 3333

60
  Chattisgarh 98932 08000
 Siliguri 1800 345 3499
 andhra pradesh 98495 78000
 Haryana 98961 78000
 Goa 98904 78000
 98982 78000
 Madhya pradesh 98932 08000
 Karnataka 98455 78000
 Kerala 98954 78000
 Rajasthan 98292 22292
 Maharashtra 98904 78000
 Punjab 98155 58000
 UP West 98973 08000
 Tamil nadu 98944 78000
 UP East 1800 345 3499
 Bhibanshwar 1800 345 3499
 Uttranchal 98973 08000

ICICI BANK HEAD OFFICE:

ICICI Bank

9th Floor, South Towers

ICICI Towers

Bandra Kurla Complex

Bandra (E)

Mumbai

Phone : +91-022-653 7914

E-Mail: wecoveru@icici.com ; lifeline@icici.com

61
SOME ABROAD BRANCHES

Bahrain Branch

ICICI Bank Ltd.

Manama Centre

Manama
Kingdom of Bahrain

Tel: + 973 17 576 161

Fax: + 973 17 221 200

Bangladesh Representative Office

ICICI Bank Ltd.

Suite 11-01, Level 11

Unique Trade Centre, 8 Panthapath

Kawran Bazar, Police Station

Tejgaon, Dhaka

Bangladesh
Tel: + 88 02 912 4985

Canada Subsidiary

ICICI Bank Canada

Exchange Tower,

130 King Street West, Suite 2130

Toronto ON M5X 1B1

Canada

Tel: + 1 416 360 0909

Fax: + 1 647 436 1178

China Representative Office

62
ICICI Bank Ltd.
2805-2806,Bank of China Towers
200 Yincheng(M) Road
Pudong
Shanghai 200 120
P.R. China
Tel: + 86 21 5888 2413
Fax: + 86 21 5888 2347

Dubai Representative Office

ICICI Bank Ltd.
Suite No. 404, The Business Centre Building
Khalid Bin Al Waleed Street
Near Burjuman
Dubai U.A.E.
Tel: + 971 4 396 5333
Fax: + 971 4 396 6994

63
CUSTOMER SATISFACTION

Customer satisfaction is equivalent to making sure that product and service

performance meets customer expectations. It is the perception of the customer that the
outcome of a business transaction is equal to or greater than his/her expectation.
Customer satisfaction occurs when the acquisition of products and /or services
provides a minimum negative departure from expectations when compared with other
acquisitions and when the marginal utility of a transaction is equal to or greater than
preceding acquisitions.

Customer satisfaction occurs when the perception of the reward from the purchase of
goods or services by the customer meets or exceeds his/her perceived sacrifice. The
perception is a consequence of matching past purchase and consumption experience
with the current purchase.

CUSTOMER SERVICE AND SATISFACTION

We must cultivate our garden. –Voltair

When we talk about customer service and/or satisfaction, we talk about creativity.
Creativity allows us to handle or diffuse problems at hand or later on rather in the
process of conducting the everyday business. We talk about how, or what, does the
organization have to do to gain not only the sale but also the loyalty of the customer.
We want to know the payoff of the transaction both in the short and long term. We
want to know what our customers Want? We want to know if our customers are
satisfied? Satisfaction, Of course, means that what we delivered to a customer met the
customer’s Approval. We want to know if customers are delighted and willing to
come

Back, and so on. Fleiss 2 and Feldman 3 present examples of that delightfulness in
their writings. Fleiss has written about Ben and Jerry’s ice cream and Feldman has
discussed excellence in a cab ride. As important as delightfulness is, some of us
minimize it, or even totally disregard it. At this point, we fail. Some of the issues that
will guarantee failure in sales, satisfaction, and loyalty are:

64
• Employees must adhere to a rigid chain of command

• Employees are closely supervised

• Conflict—in whatever form—is not allowed

• Rewards are based on carrot-and-stick principles

• Wrong objectives are measure.

We must understand customer expectation levels concerning quality. We must also

understand the strategy for customer service quality, and next we must understand the
measurement and feedback cycles of Customer satisfaction.

The customer is the person or unit receiving the output of a process on the system. In
fact, it is worth emphasizing that a customer can be the immediate, intermediate, or
ultimate customer. Also, a customer may be a person or persons, or a process or
processes. Customer satisfaction, however, is when the customer is satisfied with a
product/service that meets the customer’s needs, wants, and expectations.

There are at least three levels of customer expectations about quality:

Level 1. Expectations are very simple and take the form of assumptions, must have,
or take it for granted. For example, I expect the airline to be able to take off, fly to my
destination, and land safely. I expect to get the correct blood for my blood transfusion
and I expect the bank to deposit my money to my account and to keep a correct tally
for me.

Level 2. Expectations are a step higher than that of level 1 and they require some
form of satisfaction through meeting the requirements and/or specifications. For
example, I expect to be treated courteously by all airline personnel. I went to the
hospital expecting to have my hernia repaired, to be in some pain after it was done, to
be out on the same day, and to receive a correct bill. And I went to the bank expecting
the bank teller to be friendly, informative, and helpful with my transactions.

Level 3. Expectations are much higher than for levels 1 and 2. Level 3 requires some
kind of delightfulness or a service that is so good that it attracts me to it. For example,
an airline gives passengers traveling coach class the same superior food service that
other airlines provide only for first-class passengers. In fact, I once took a flight where

65
the flight attendants actually baked cookies for us right there on the plane. When I
went to the hospital, I expected staff to treat me with respect and they carefully
explained things to me. But I was surprised when they called me at home the next day
to find out how I was doing. And at my house closing, the bank officer, representing
the bank holding my mortgage, not only treated me with respect and answered all my
questions about my new mortgage, but just before we shook hands to close the deal,
he gave me a housewarming gift.

CUSTOMER SATISFACTION SURVEYS HELP TO:

1. Improve customer, client, or employee loyalty.

2. React quickly to changes in the market.

3. Identify and capitalize on opportunities.

4. Beat the competition.

5. Retain or gain market share.

6. Increase revenue.

7. Reduce costs.

66
COMPANY’S EFFORT TO ENSURE SATISFACTION OF
CUSTOMERS

OBJECTIVES OF ICICI

 Promote good and fair banking practices by setting minimum standards in

dealing with you

 Increase transparency so that you can have a better understanding of what you
can reasonably expect of the services;

 Encourage market forces, through competition, to achieve higher operating

standards;

 Promote a fair and cordial relationship between you and your bank;

 Foster confidence in the banking system

To Help You To Understand How Our Financial Products And Services Work By:

a. Giving you information about them in any one or more of the following languages:
Hindi, English or the appropriate local language.

b. Ensuring that our advertising and promotional literature is clear and not misleading

c. Ensuring that you are given clear information about our products and services, the
terms and conditions and the interest rates/service charges, which apply to them.

d. Giving you information on what are the benefits to you, how you can avail of the
benefits, what are their financial implications and whom you can contact for
addressing you queries and how.

67
To Help You Use Your Account Or Service By:

a. Providing you regular appropriate updates.

b. Keeping you informed about changes in the interest rates, charges or terms and
conditions.

INFORMATION

You can get information on interest rates, common fees and charges through any one
of the following:

a. Looking at the notices in our branches ;

b. Phoning our branches or help-lines;

c. Looking on our website;

d. Asking our designated staff/help desk ;or e. Referring to the service guide/Tariff
Schedule.

Before You Become a Customer we will:

 give you clear information explaining the key features of the services and
products you tell us you are interested in;

 give you information on any type of products and services which we offer and
that may suit your needs;

 tell you if we offer products and services in more than one way [for example,
through

 ATMs, on the Internet, over the phone, in branches and so on] and tell you
how to find out more about them;

 tell you what information we need from you to prove your identity and
address, for us to comply with legal, regulatory and internal policy
requirements.

68
Advertising, Marketing and Sales

 We will make sure that all advertising and promotional material is clear, and
not misleading.

 In any advertising in any media and promotional literature that draws attention
to banking service or product and includes a reference to an interest rate, we
will also indicate whether other fees and charges will apply and that full
details of the relevant terms and conditions are available on request.

 If we avail of the services of third parties for providing support services, we

will require that such third parties handle your personal information (if any
available to such third parties) with the same degree of confidentiality and
security as we would.

 We may, from time to time, communicate to you various features of our

products availed by you. Information about our other products or promotional
offers in respect of our products/services, will be conveyed to you only if you
have given your consent to receive such information/ service either by mail or
by registering for the same on our website or on our phone banking/customer
service number.

 We have prescribed a code of conduct for our Direct Selling Agencies (DSAs)
whose services we may avail to market our products/ services which amongst
other matters requires them to identify themselves when they approach you for
selling our products personally or through phone.

 In the event of receipt of any complaint from you that our

representative/courier or DSA has engaged in any improper conduct or acted
in violation of this Code, we shall take appropriate steps to investigate and to
handle the complaint and to make good the loss.

69
Privacy and Confidentiality

We will treat all your personal information as private and confidential [even when you
are no longer a customer], and shall be guided by the following principles and policies

70
 COMPARISON OF ICICI WITH SBI
ICICI bank is the largest private sector bank in India and the second largest
commercial bank in India. It has branches all over India and even in smaller towns in
South India after the takeover of Bank of Madurai . The bank also has foreign
subsidiaries like ICICI bank, Canada in Canada, Britain and Russia ,representative
offices in USA, China, UAE, Bangladesh, South Africa and branches in Bahrain,
Singapore .
 It offers a platform for online share trading through ICICI Direct and insurance
services - ICICI Prudential. NRI services include money transfer through
Money2India, which offer better foreign exchange rates for lower amounts
compared to other services.

 Like most private sector banks, all ICICI bank branches in India are networked.
You can access your account from any ICICI bank branch in India. Anyone can
also deposit cash/local cheque in your account at any branch of ICICI bank.

 Also they have very convenient bank timings and are open for 12 hours from 8.00
a.m to 8 p.m from Monday to Saturday. When you deposit a cheque at their
branch, they will readily give you a stamped acknowledgement for deposit. You
can only deposit cash in your own account at the ATM, for depositing cash into a
third party account, you have to visit the branch. You have to select the deposit
cash option, you will get an envelope for depositing cash, which you can then fill
in the details and deposit it back. At locations where ICICI bank does not have a
branch, the queue at the ATMs are very long. Just after office hours , between 6
pm - 7.30 pm , customers sometimes have to wait for 15-20 minutes on some
days, to access the ATM.

Since ICICI bank was established after 1991 it offers online banking where you can
check the balance in your account any time. The interface for savings accounts is
much better and user friendly compared to that for their roaming current account

 However, unlike other banks like HDFC bank, their online bank statement
does not indicate the branch at which the amount is deposited. The
information is available in the email statement sent to you the next day. You

71
 have to contact phone banking , enter CRN and TPIN, during working hours
to get this information. Very often, the system is slow, so you have to hold on
for 10 minutes.

 For savings account, up to 3 cash deposits per quarter (3 months) at the non
base branch can be made at no cost. For additional cash deposits, the bank
charges the recipient Rs 100 (+ service tax) per deposit, irrespective of the
amount deposited. When the bank implemented this change, the ICICI bank
customers were not informed about the revision in the charges. For outstation
cheques, ICICI bank charges a minimum of Rs 30 (+ service tax) for savings
accounts . This is very inconvenient for account holders in small towns, who
receive the dividend warrant payable in major cities only. These warrants can
be for small amounts like Rs 20. For salary accounts, the minimum AQB
required is zero and you retain the account even after you leave the job. If your
AQB is more than Rs 100000, you get a free at par chequebook. For an AQB
of more than Rs 500000 (fixed deposit + savings account balance), you are
eligible for private banking services. For non maintenance of average
quarterly balance, not only do they deduct Rs 750 from your balance, they also
deduct an additional service tax.

Many of the ICICI bank customers are salary account holders, who are forced by
their employers to open an account with ICICI bank to receive their salary. The
account is opened at a branch which is convenient for the employer, but extremely
inconvenient for the employee. If want any clarification or information, their
customer support (through phone banking or email) will instruct you visit the nearest
branch - where the concerned person may or may not be available. For savings
account customers if you send an email asking for clarifications, it is usually
answered after a week.

72
 They have discontinued the auto sweep-in facility (earlier called Quantum Optima
) , where the amount in savings account was automatically converted into a fixed
deposit, if it exceeded Rs 15000. With the decline in interest rates for loans,
providing this facility is no longer profitable for the bank. You now have to give
an application at the branch if you wish to continue with this facility now. The
form for making the application was sent along with the monthly bank statement.
You can alternately open a recurring deposit, where a fixed amount is added to
your fixed deposit every month.

Making a new Fixed Deposit with ICICI bank for current accounts is extremely time
consuming , especially when compared to HDFC bank. They will insist that you
withdraw cash from your account for making the FD. Since withdrawals of amounts
more than Rs 25000 are subject to cash withdrawal tax, for larger amounts , you will
have to split the fixed deposit and visit the branch on 2 different days. ICICI bank is
probably the only bank in India where they will not accept a ICICI bank cheque for
making a fixed deposit. We had given a cheque with the fixed deposit form , but the
bank officer insisted that we pay cash. She said she would fill the form for us, but she
did not select the options which were initially indicated, causing further problems for
us.

(SBI) IS THE LARGEST PUBLIC SECTOR BANK IN INDIA

SBI has branches and ATMs all over India , details of which are available at their
website. State Bank of Hyderabad, State Bank of Patiala, State Bank of Saurashtra,
State Bank of Bikaner and Jaipur ,State Bank of Indore, State Bank of Mysore and
State Bank of Travancore are the seven subsidary banks of SBI. As of March 2006,
SBI holding in these banks varies from 74% to 100% , but is likely to decrease in
future. SBI has one of the largest network of ATMs in the Asia Pacific region. Many
branches of State Bank of India are computerised. In places where the Reserve Bank
of India, (RBI) the central bank of India does have an office, SBI carries out many of
its functions. SBI timings vary according to location, for example the Powai, Mumbai
branch of State Bank of India is open between 10.15 am to 2pm (Monday-Friday

73
 You can open a public provident fund (PPF) account at any State Bank of India
branch. PPF accounts are one of the few savings instruments which offer a high
tax free interest rate of 8% per year. All deposits made on or before 5th of a
month earn interest for the entire month. If you deposit a cheque in your PPF
account on the 5th of the month, you will get interest for the month, though your
account may be debited at a later date. The interest is credited to the account at the
end of the accounting year in India.

 If you know an agent who is registered with that particular branch of State Bank ,
he will pay you back, a part of the commission he receives from the bank. So you
can get back 0.5% - 0.6% of the amount deposited immediately by cash. Usually
larger the amount, the higher the commission paid back by the agent (it is
negotiable) . The pay-in slip for PPF has 3 sections - depositors copy, agents copy
and bank copy. The agents copy has to be given to the agent and he will give part
of the commission. Earlier financial services firm like Bluechip in Mumbai, would
also give a commission of 0.25% , but they have stopped in the last 2 years.

 The minimum amount that can be invested in one year is Rs 500 and maximum
amount is Rs 70000. This investment has a lock in period of 15 years. No
withdrawals are allow till 6 years after account opening and one withdrawal is
allowed per year there after. It offers rebate under section 80C and the interest is
tax free under section 10C.

 For cash withdrawals, you can either use a withdrawal slip or cheque. If an
account is inactive for a long time, State Bank of India does not charge any fee for
reactivation. However, they have a verification process, which may take a long
time. Payment of income tax , advance tax , sales tax can be done at SBI
branches. Foreign currency drafts can also be obtained at the branches. Since SBI
offers a variety of banking services, their branches are usually very crowded.

 State Bank of India has increase home loan interest rates by 25-75 basis points.
Also no fixed rate loans will be available for periods more than 10 years. These
changes have come into effect from March 1, 2006.

 SBI Railway Visa Card allows booking of railway tickets online at the Indian
Railways website at zero transaction charges. Users of this credit card can get

74
 back up to 10% of ticket fare as railway points. These points can be redeemed
later, like frequent flyer miles offered by airlines. State Bank of India is the largest
issuer of debit cards (Maestro) in India

 State Bank customers who have to wait a long time to process a bank transaction
can register their complaint through a touch screen device for customer feedback
service at the branch. The information is recorded and processed in the central
server. As of March 2006, it is implemented in 10 branches of SBI in
Mumbai.When SBI employees go on strike, the Reserve Bank of India takes over
all clearing operations. However, banking operations are affected since SBI has
nearly 30% of the total customers of banks in India. Cheques/DD drawn on SBI
were not cleared due to the strike. All government taxes like income tax, sales tax,
service tax can be paid at any branch of SBI.

 State Bank of India has 52 foreign offices in 34 countries including Australia,

UK, USA, Canada, Bahrain, Nigeria, Bangladesh, Nepal, Bhutan Sri Lanka.
These are useful for foreign trade transactions like opening of Letter of Credit

75
STATE BANK OF INDIA
Contact Information
State Bank of India
Madame Cama Road
Mumbai 400 021, India
Tel. +91-22-20-22-426
Fax +91-22-28-52-708

Type: Public
On the web: http://www.statebankofindia.com
Employees: 205,515
Employee growth: (0.7%)

State Bank of India is the nation's largest bank. Tracing its roots back some 200 years
to the British East India Company (and initially established as the Bank of Calcutta in
1806), the bank operates more than 13,500 branches and over 5,000 ATMs within
India, where it also owns majority stakes in seven associate banks. State Bank of India
has more than 50 offices in nearly 35 other countries, including multiple locations in
the US (California), Canada, and Nigeria. The bank has other units devoted to capital
markets, fund management, factoring and commercial services, and brokerage
services. The Reserve Bank of India owns about 60% of State Bank of India.

Key numbers for fiscal year ending March, 2005:

Sale: $12,456.0
One year growth: 11.6%
Net income: $1,301.4
Income growth: 3.8%

Officers:
Chairman: Arun Kumar Purwar
Managing Director and Group Executive (Corporate Banking): Tara Shankar (T.S.)
Bhattacharya
Deputy Managing Director and Chief Development Officer: Abhijit Datta

76
 STATE BANK OF INDIA

State Bank of India

Type: Public (BSE, NSE:SBI) & (LSE: SBID)

Founded: Calcutta, 1806 (as Bank of Calcutta)

Corporate Centre,
Headquarters: Madam Cama Road,
Mumbai 400 021 India

Chairman [Om Prakash Bhatt] industry = Banking

Key people: Insurance
Capital Markets and allied industries

Loans, Credit Cards, Savings, Investment vehicles,

Products:
SBI Life (Insurance) etc.

Revenue: USD 13.775 billion (2005)

Website: www.statebankofindia.com

State Bank of India (SBI) (LSE: SBID) is the largest bank in India. It is also,
measured by the number of branch offices and employees, the largest bank in the
world. Established in 1806 as Bank of Bengal, it remains the oldest commercial bank
in the Indian Subcontinent and also the most successful one providing various
domestic, international and NRI products and services, through its vast network in
India and overseas. With an asset base of $126 billion and its reach, it is a regional
banking behemoth. The bank was nationalised in 1955 with the Reserve Bank of India
having a 60% stake. It has laid emphasis on reducing the huge manpower through
Golden handshake schemes and computerizing its operations

77
ROOTS

The roots to the State Bank of India are traceable to the first decade of 19th century,
when the Bank of Calcutta, later renamed as the Bank of Bengal, was established on 2
June 1806. The Bank of Bengal and two other Presidency banks, namely, the Bank of
Bombay (incorporated on 15 April 1840) and the Bank of Madras (incorporated on 1
July 1843) were amalgamated on 27 January 1921, and the reorganized banking entity
was named the Imperial Bank of India. All these Presidency banks were incorporated
as joint stock companies, and were the result of the royal charters. The Imperial Bank
of India continued to remain a joint stock company. Until the establishment of a
central bank in India the Imperial Bank and its early predecessors served as the
nation's central bank printing currency.
The Reserve Bank of India, which is the central banking organization of India, in the
year 1955, acquired a controlling interest in the Imperial Bank of India and the
Imperial Bank of India was christened on 30 April 1955 as the State Bank of India.
This acquisition of the controlling interest was done pursuant to the provisions of the
State Bank of India Act 1955, an Act enacted by the Parliament of India.

78
TIMELINES

Offices of the Bank of Bengal

 June 2, 1806: The Bank of Calcutta established.

 January 2, 1809: redesignated as Bank of Bengal.

 April 15, 1840: Bank of Bombay established.

 July 1, 1843: Bank of Madras established.

 1861: Paper Currency Act passed.

 January 27, 1921: all three banks amalgamated to form Imperial Bank of
India.

 July 1, 1955: State Bank of India formed; becomes the first Indian bank to be
nationalised.

 1959: State Bank of India (Subsidiary Banks) Act passed, enabling the State
Bank of India to take over eight former State-associated banks as its
subsidiaries.

Associate banks

There are seven other associate banks that fall under SBI. They all use the "State Bank
of" name followed by the regional headquarters' name. These were originally banks
belonging to princely states and were nationalised in 1959. In tune with the first Five
Year Plan, emphasizing the development of rural India, these banks were integrated
with the State Bank of India, to expand its rural outreach. The State Bank group refers
to the seven associates and the parent bank. All the banks use the same logo of a blue
keyhole. There has been a proposal to merge all the associate banks into SBI to create
a "mega bank" and streamline operations.

79
  State Bank of Indore

 State Bank of Bikaner & Jaipur

 State Bank of Saurashtra

 State Bank of Hyderabad

 State Bank of Mysore

 State Bank of Patiala

 State Bank of Travancore

GROWTH
State Bank of India has often acted as guarantor to the Indian Government, most
notably during Chandra Shekhar's tenure as Prime Minister of India. With more than
9400 branches and a further 4000+ associate bank branches, the SBI has extensive
coverage. State Bank of India has electronically networked most of its metropolitan,
urban and semi-urban branches under Core Banking System(CBS). The bank has one
of the largest ATM networks in the region. The State Bank of India has had steady
growth over its history, though it was marred by the Harshad Mehta scam in 1992. In
recent years, the bank has sought to expand its overseas operations by buying foreign
banks. It is the only Indian bank to feature in the top 100 world banks in the Fortune
Global 500 rating and various other rankings. According to the Forbes 2000 listing it
tops all Indian companies.

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GROUP COMPANIES

 SBI Capital Markets Ltd

 SBI Mutual Fund (A Trust)
 SBI Factors and Commercial Services Ltd
 SBI DFHI Ltd
 SBI Cards and Payment Services Pvt Ltd
 SBI Life Insurance Co. Ltd - Bancassurance (Life Insurance)

81
 DATA ANALYSIS

AGE GROUP

 IMPLICATION: If we closely look at the pie-chart, we can say that the people
between the age group of 25 to 55 are the main customer of the bank, which
contributes almost 75% of the bank’s customers. But the old age and the young
people have been less attractive on this leading product of ICICI Bank, which is
a matter of concern. So more focus should be given to them as they have the
huge

82
POTENTIAL. OCCUPATION
 IMPLICATIONS: This pie chart clearly shows that service holder and the
business people are the main customer of the bank. Reason for this could be as
per interviewed was working hour and anywhere banking which suits them. 8 to
8 banking give them the freedom to do banking work after the office. Student’s
contribution is less as student account is not available in Patna and 5000 as
minimum balance is not possible for them. Other section should be increased by
creating awareness about the banking products

83
ANNUAL INCOME

 IMPLICATIONS: Higher income or we can say that more than 34 LAKHS

earning people are contributing 70% of the transactions. But it is advisable to
penetrate more in the lower income group not only in terms of accounts but also
in other banking products because they contribute a major part of the society.
Target should be on that every section of the society should open saving account
or other account in ICICI Bank.

84
 DO YOU EXPECT FROM A BANK WHILE OPENING AN
ACCOUNT

 IMPLICATIONS: When a customer visits a bank the first and foremost

thing he looks, that how quickly he is served, how his problem is entertained by
the bank employee and what is the working hour of the bank. That’s why these
three things contribute the maximum of this pie – chart. Less formalities and
variety of products although contributes less but it has a major impact on the
customer. So bank should follow on these things also. Service sector like
banking, preference should be given to make.

85
WHICH OF THE FOLLOWING ATTRIBUTES COMPELLED YOU
MOST TO OPEN SAVING ACCOUNT IN ICICI BANK

 IMPLICATIONS: As we found in our finding that majority of the people

like the saving account, this chart reveals that what are the factor and their
contribution making their product really leading product of ICICI Bank.
VALUE ADDED SAVING ACCOUNT is undoable a unique sub product of
ICICI Bank. Since it has the appeal catch maximum customer as it provides
the facility of FIXED deposit in saving account ATM cum debit card is also a
major attributes as it made the banking easy. Personalized chequebook is also a
major attraction in this section. As far as other factors are concern they are
showing less appearance in this chart.

86
WHAT TYPE OF ACCOUNT DO YOU HAVE IN ICICI BANK?

 IMPLICATIONS: Saving account is the leading and attractive product for

the ICICI Bank as it has occupied a major chunk in this chart. This number
and percentage clearly shows that this product has all the quality to give the
customer best services and ability to satisfy them. On the second and third
position current and fixed deposit has also been helpful to increase the customer
base but still their performance needs to be improved. As far as NRI and other
accounts are concerned they have less appearance. So majority of the business is
moving around few leading products. Reason could be either people are not
aware about the various products of the bank or bank has limited range of
products. So bank must ascertain that where things are going wrong and for that
what sort of necessary step could be taken.

87
WHICH FACTOR AMONG THE FOLLOWING INFLUENCED YOU
MOST TO OPEN AN ACCOUNT IN ICICI BANK?

INFLUENCED FACTOR
PROSPECT
US
11% FRIENDS /
RELATIVE
BANK FRIENDS / ADVERTISEMENT
EMPLOYEE RELATIVE
12% 44%
BANK EMPLOYEE
ADVERTISE
MENT PROSPECTUS
33%

 IMPLICATIONS: It has been said a satisfied customer is the best medium

for an advertisement since in this chart friend / relative have played a key role in
opening the accounts of others. Which implies that bank’s real customers are
satisfied enough with facilities available on the products and services enjoyed by
them. On the other hand advertisement also plays a vital role in influencing the
customer. As their behavior not only please the customer but also attract the
customer. Well maintained prospectus is also a major attributes of attracting the
customer. Main focus of the bank should be no satisfaction of customer.

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 IN COMPARISION TO OTHER BANKS HOW WOULD YOU
RATE ICICI BANK?

 IMPLICATIONS: Comparison with other banks depends on its overall

performance in the eyes of the people. In this chart it is clearly showing that
74% of the people are satisfied with ICICI Bank. In a short span of time of its
existence in this city with strong competition from major public sector bank like
SBI and other private players bank has done well it has occupied a different
position in the people’s mind.

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 WOULD YOU RECOMMEND ICICI BANK TO
OTHERS?

 IMPLICATIONS: As per the chart we show that 5% of the people don’t

want to recommend ICICI Bank to others. Bank must find the reason of their
dissatisfaction because in this competitive world we have to achieve this target.

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 RECOMMENDATIONS

Since the customer and his needs remain in focus in banking, it would be appropriate
to have a view of the customers banking needs which include financial security,
convenience, quick service, personalized service, investment counseling, return of
investment, support by way of credit prestige, wide range of service, etc. and to be the
best on these aspects ICICI Bank has and is trying it’s best, and has been successful
too, but still there is some scope for improvement, which I observed during my
training in this bank.

CUSTOMIZED SERVICE

Nowadays, customers are more service driven than product – driven and are not
homogeneous in their behavioral pattern, attitude, needs and expectations. Therefore,
a through understanding of the customer is a pre requisite to offer him satisfaction
through providing services. ICICI Bank should also focus on to have the provision to
make some changes in it’s core products on the basis of region, purchasing power of
the people etc. because customers want that their special case must be considered, for
that branches need to be empowered. In other word it can be said bank should alter
it’s existing service to satisfy the customer needs, as and when it is needed in special
cases. Bank should begin a clear understanding of the entire customer base in
particular, of those customers are the most profitable.

SINCERE PRICING OF THE CORE PRODUCT

Pricing is in fact a very critical and sensitive issue while launching any product or
inducing more features in existing product in such a highly competitive market of
banking before the management of any bank. Because, price driven competition is
one of the significant emerging trend in bank marketing. ICICI Bank should also be
very careful while reconsidering the price of any core and leading product by closing
understanding the behaviour up to what extent customers are in the position to tolerate
it, since customer’s price sensitivity is not same across product categories. Price of
any product is kept same across the country but for the some places is always not

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correct, like New Delhi where delta increase in the price of any product matters for
the customers. As it has been seen in the case of increase in charges of QAB of
savings account that resulted in many closures of the account. The reaction of this
increment in the charges from the customer was aggressive. So bank must price any
product by keeping the view of region factor too-where people needs, attitude and
purchasing power must be closely understood by the management of the bank. For
this, branches also needs to be empowered to the some extent-where they can make
necessary changes in the price of some selected core products, as they have better
understanding of the behaviour of their customers than the policy makers of the bank.
There should be effective publicity of new products of new products and relaunching
of existing one too. Monitoring and customer feedback of all the new and old
products should be one regular basis.

CUSTOMER AWARENESS

Bank should provide effective publicity of new product launched and educate the
customer to go in for these products by highlighting the advantages of the products.
Because if bank’s aim is to provide service matching the best in the banking industry
so that it can get the most effective publicity, especially through word of mouth for
this at the same it is inevitable to educate the customer about bank’s product and
facilities available on it. As the products and services of the ICICI Bank are almost
technology oriented where most advanced softwares are used and most of the banking
work are executed on computer through Internet. In such situation where more
technicalities is involved in both products and services there is a need to educate the
customers so that they can easily use and avail all the facilities available on all the
product. During my training, I observed that many customers, not to ask about
Internet banking, Phone Banking even don’t know how to use ATM, which is really a
area of concern. Customers do not know the complete rules and regulations and
procedures of banks and bankers preserve them for themselves and do not take
interest in educating the customers because if you are giving a product in the hands of
the customers keeping the view to serve them better, it is equally important to aware
not only about the facilities that are available on any product but also how to use
them. Until and unless this thing is practices as a campaign, it would be difficult to

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retain existing customers as it is said retaining the existing customers is less expensive
than creating new one. For this bank need to educate the customer from the grass root
of banking.

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 CONCLUSION

“More than a bank you need a trusted partner”- is the core principle on which Private
Banking at ICICI Bank is structured.

Though products have been added and modified in the past but the motto has not
changed which is to grow and develop relationship with top end client age and
generate returns for the bank. Private banking at ICICI Bank has been a great success
lately thanks to their expertise in financial advisory, skilled team of Relationship
Managers and being proactive in approach right from the beginning. The analysis of
the research shows that around two-third of their client age are banking with them
from more than two years which is commendable in terms of client retention. Also for
nearly all of their clients ICICI Private banking is the only solution provider. From a
high net worth individual aspect the private banking is truly a brilliant experience to
be recognized and treated as a priority customer.

Relationship Manager’s need to be more proactive in approach and concentration

should be on enlarging the customer base of HNI clients and also stress should be
given on client retention techniques.

To sum up ICICI is going great guns with its Private Banking division but this
business model is still at its growing stage of life cycle in India and there is still a lot
more to be achieved by everyone involved with this.

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 ANNEXURES

QUESTIONNAIRE

Dear Sir / Madam, I am conducting a survey on ICICI. I shall be very thankful to you to give
your few minutes to me for answering my few questions below.

Name Address

Sex

Occupation

Q1) Which attributes, while opening an account do you expect from a bank?

(a) Quick Service

(b) Varity of Product

(c) Less formalities of Documents

(d) Working Hours

(e) Proper Information

Q2) which of following banks do you have account?

(a) ICICI Bank

(b) IDBI Bank

(c) HDFC Bank

(d) UTI Bank

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Q3) If yes, which features compelled you most to open an account in ICICI Bank?

(a) Quick Services

(b) Variety of Products

(c) Less Formalities of Document

(d) Working Hour

(e) Proper Information

Q4) Who influenced to open an account in ICICI Bank?

(f) Bank Employees

(g) Prospectus

(h) Advertisement

(i) Friend

Q5) What kind of account do you have in ICICI Bank?

(j) Saving Account

(k) Current Account

(l) Fixed Deposit

(m) N.R.I. Services

Q6) Which of the following attributes compelled you most while opening a Saving Account?

(n) ATM Cum Debit Card

(o) Cheque Book Facility

(p) The Internet Banking

(q) Value Added Saving Account

(r) Phone banking

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Q7) would you recommend ICICI Bank to other?

(a) YES

(b) NO

THANK YOU

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 BIBLIOGRAPHY

 www.icicibank.com

 June & July issue of IBA Bulletin

 Brochures of ICICI BANK LTD.

 www.iciciuniverse.com

 Business Magazines

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