A

PROJECT REPORT
ON

“ Customer perceptions about

the market linked investments & products
of ICICI Bank”
IN THE PARTIAL FULFILLMENT OF THE REQUIREMENT FOR

MASTERS OF BUSINESS ADMINISTRATION

Degree Programme

Under the supervision of: Submitted By:-

Mr.Bajrang karnani Anurag pareek
Branch operation manager RMAT PART-II
RAMGANJ MANDI, KOTA

Department of Management Studies,

Maharishi Dayanand Saraswati University,
Ajmer (Rajasthan)

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 Acknowledgement

Acknowledgement is not a mere formality or ritual but a genuine opportunity to express the
indebtedness to all those without who‘s active support and encouragement this project wouldn‘t
have been possible. My special thanks to Mr. Bajrang Karnani (Branch Operatoion
Manager) & DR. SHIV PRASAD (Faculty Guide, M.D.S.U. AJMER) who gave me the
proper guidance.

I have used questionnaire method to collect data and had analyzed them. I got some findings by
analyzing data as in the end I have also given the recommendations to the company, which I
thought would help the company in some way. I used direct interview from the customers for
collecting data.

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

SIGNATURE OF THE STUDENT

ANURAG PAREEK

RMAT PART-II (SEM 3RD )

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 Executive Summary

The project has been undertaken in a renowned bank ―ICICI‖. The main
objective behind the project is to know the consumer perception about the Market Risks
& Investments and to get an insight about the various product offerings of the bank.

To find the various reasons because of which the company is able to survive the
edge cutting competition and what are the other marketing strategies of the company. A
survey has been done and data has been collected from various customers all over
Ramganj mandi (KOTA) and thus a report has been prepared. In the survey the
customers were interacted in order to find out their knowledge about the products &
schemes of ICICI Bank.

The customers who were unknown about the product offerings were given
information. The knowledge about various market linked investments was given to
them and it was told that how can they invest their money to get superior returns. It was
told to them to take the help of the wealth managers of ICICI Bank in order to protect
their capital.

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Contents

1) Introduction

2) Market Strategies of ICICI Bank

3) Competitors

4) Product Offerings

5) Objective of Research

6) Research Methodology.

7) Analysis

8) References

 Annexure
Questionnaire

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 INTRODUCTION:-

Company Profile

ICICI Bank is India's second-largest bank with total assets of Rs. 3634.00billion
(US$ 81 billion) at March 31, 2010 and profit after tax of Rs. 40.25billion for the year
ended on March 31, 2010. ICICI Bank is the second amongst all the companies listed on
the Indian stock exchanges in terms of free float market capitalisation.

The Bank has a network of about 2,044 branches and 5,546 ATMs in India and a
presence in 18 countries. ICICI Bank offers a wide range of banking products and
financial services to corporate and retail customers through a variety of delivery
channels and through its specialised subsidiaries and affiliates in the areas of investment
banking, life and non-life insurance, venture capital and asset management or wealth
management. The Bank currently has its subsidiaries in the United Kingdom, Russia
and Canada, branches in Unites States, Singapore, Bahrain, Hong Kong, Sri Lanka,
Qatar and Dubai International Finance Centre and representative offices in United Arab
Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia. The
bank‘s UK subsidiary has established branches in Belgium and Germany.

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

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Vision of ICICI Bank:

Over the last few years, the ICICI Bank has taken rapid strides in developing new
businesses in line with its proposition to offer complete financial services to both
corporate and retail customers.

With the recent addition of insurance, the proposition of ICICI Bank is now fulfilled.
Going forward, the challenge for ICICI will be to continue innovating to improve
market shares and maintain its competitive edge. In this endeavour, ICICI will continue
to benchmark with global best practices to ensure optimum utilization of its resources
and the finest exposure to its work force. The speed with which it has been able to
transform the organization and successfully start so many new businesses is almost
singularly owing to the skills, enterprise and the depth of its human resources.ICICI
Bank is committed to enriching this valuable resource which in turn, will allow it to
bring innovative practices to the world of financial services in India. With technology
playing the key role mainly.
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HISTORY OF THE COMPANY

The ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian
financial institution, and was its wholly owned subsidiary. ICICI's shareholding in
ICICI Bank was reduced to 46% through a public offering of shares in India in fiscal
year 1998, an equity offering in the form of ADRs listed on the NYSE in fiscal year
2000, ICICI Bank's acquisition of Bank of Madura Limited in an all-stock
amalgamation in fiscal year 2001, and secondary market sales by ICICI to institutional
investors in fiscal year 2001 and fiscal year 2002. ICICI was formed in year 1955 at the
initiative of the World Bank, the Government of India and representatives of Indian
industry. The principal objective was to create a development financial institution for
providing the medium-term and long-term project financing to Indian businesses. In the
1990s, the ICICI transformed its business from a development financial institution
offering only single project finance to a diversified financial services group offering a
wide variety of products and services, both directly and through a number of
subsidiaries and affiliates like ICICI Bank. In 1999, the ICICI become the first Indian
company and the first bank or financial institution from non-Japan Asia to be listed on
the New York Stock Exchange (NYSE).
After consideration of various corporate structuring alternatives in the context of the
emerging competitive scenario in the Indian banking industry, and the move towards
universal banking scenario, the managements of the ICICI and ICICI Bank formed the
view that the merger of ICICI with ICICI Bank would be the optimal strategic
alternative for both of the entities, and would create the optimal legal structure for the
ICICI group's universal banking strategy. The merger would enhance value for the
ICICI shareholders through the merged entity's access to low-cost deposits, much
greater opportunities for earning fee-based income and the ability to participate in the
payments system and provide transaction-banking services..

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MARKETING STRATEGIES

Market Strategy of ICICI Bank:

(ICICI Bank uses the concept of Universal Banking.)

Universal Banking Concept: In universal banking, large banks operate extensively

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

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

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

8
Its legacy of non-performing assets (NPAs) -- for which it has been rated below its
peers earlier -- is now almost history with net NPLs (non-performing loans) down to 2
per cent.

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

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

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

Major Steps Taken:

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

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

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

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Global Market Strategy:

The global opportunity spectrum is changing dramatically, and in the next three
years, the bank‘s global business will contribute one-third of the book top line and
bottom-line. Today it's about only 10-12 per cent. The NRI (people living abroad) is a
great customer and the other is the Indian corporate who is globalising -- either in the
trade business or is setting up businesses abroad.

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

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Advertising Strategy:

Amitabh Bachchan as brand ambassador of ICICI:

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

ShahRukh Khan as global brand ambassador of ICICI:

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

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

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 COMPETITORS:-

Competitors of ICICI Bank:

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

Universal Banking, ICICI Style

ICICI: Bonds, loans, corporate ICICI Web Trade: Online stock trading
finance, and infrastructure finance.

ICICI Bank: Retail and corporate ICICI Home: Housing finance

banking, and cash management

ICICI Capital: Financial products ICICI Securities: I-Banking, corporate

marketing and distribution finance, and advisory

ICICI Prudential: Life Insurance joint ICICI Brokerage: Broking and equity
venture research

ICICI Lombard: General Insurance ICICI Venture: Private equity

joint venture investments

ICICI Infotech: Software solutions ICICI Kinfra: Infrastructure financing

and IT-enabled services in Kerala

ICICI Personal Financial Services: ICICI Winfra: Infrastructure financing

Retail loan distribution in West Bengal

ICICI International: Offshore ICICI Knowledge Park: Infrastructure

investment and fund management and support facilities

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

HDFC Bank:

The HDFC House

HDFC Housing finance

HDFC Asset Mutual funds

Management

HDFC Reality Online property solutions (JV

with Mahindra‘s)

HDFC Standard Life insurance joint venture

Life

HDFC Internet and phone broking

Securities

Gruh Finance Home loans for repair and

reconstruction

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AXIS Bank:

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

Why ICICI Bank Leads:

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

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

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PRODUCT OFFERINGS

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1) DEPOSITS

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

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

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

b) Life Plus Senior Citizens Savings Account :

ICICI Bank understand that a Savings Account needs to do more after

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

c) Young Stars Savings Account :

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

d) Fixed Deposits :

ICICI provides Safety, Flexibility, Liquidity and Returns in the case of fixed
deposits.
A combination of unbeatable features of the Fixed Deposit from ICICI
Bank.

e) Recurring Deposits

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

f) Easy Receive Savings Account :

Easy receive account is a unique savings account that caters to domestic

banking needs, while offering additional benefits for remittances received in
the account from abroad.

2) Loans: ICICI Bank offers wide variety of Loans Products to suit your
requirements. Coupled with convenience of networked branches/ ATMs and
facility of E-channels like Internet and Mobile Banking, ICICI Bank brings
banking at customer‘s doorstep.

a) Home Loans:

The No. 1 Home Loans Provider in the country, ICICI Bank Home Loans offers
some unbeatable benefits to its customers - Doorstep Service, Simplified
Documentation and Guidance throughout the Process.

b) Personal Loans:

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

c) Car Loans:

ICICI Bank is the No. 1 financier for car loans in the country. It has network of
more than 2500 channel partners in over 1000 locations. It has tie-ups with all
leading automobile manufacturers to ensure the best deals. A number of flexible

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 schemes & quick processing are available. Hassle-free application process is
available on the click of a mouse.

d) Commercial Vehicle Loans:

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

Two Wheeler Loans

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

e) Farm Equipment Loans:

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

f) Business Instalment Loans:

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

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3) CARDS:

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

a)Credit Cards:

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

b) Travel Cards:

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

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Alliance Products:

1) Wells Fargo, USA

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

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

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

Benefits

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

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

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

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

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

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2) Lloyds TSB - India Banking Service

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

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

branches.

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

c) Easy Money Transfers at nominal costs

d) Fast transactions - within 4 working days

Corporate Banking:

ICICI Bank offer corporate a wide range of products and services, the
technologies to leverage them anytime, anywhere and the expertise to customize them
to client-specific requirements.

From cash management to corporate finance, from forex to acquisition financing, ICICI
bank provide the customers with end-to-end services for all your banking needs. The
result is an overall financial solution for the company that helps customers
accomplishes their objectives.

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

2) ICICI Bank has been the foremost arrangers of acquisition finance for cross
border transactions and is the preferred financer for acquisitions by Indian
companies in overseas markets.

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 3) The Bank has also developed Forex risk hedging products for clients after
comprehensive Research of the risks a corporate body is exposed to, e.g.,
Interest Rate, Forex, Commodity Credit Risk, etc.

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

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

6) ICICI support customer‘s international business by meeting working capital

requirements of export and import financing. The Bank also has a host of non-
funded services for their clients.

7) Whatever customer‘s industry, size or financial requirements, ICICI Bank has

the expertise and the solutions to partner them all the way.

Transaction Banking

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

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Loan Syndication

The bank ensures the participation of banks and financial institution for the
syndication of loans. Some of the products syndicated are:

• Project Finance
• Corporate Term Loans
• Working Capital Loans
• Acquisition Finance, etc.

Sell Down

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

• Asset-Backed Securities (ABS).

• Mortgage-Backed Securities (MBS).
• Corporate Loan Sell-down.
• Direct Loan Assignment.

Financial Institution:

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

Under this umbrella, the Bank caters exclusively to the needs of:
1) Different domestic financial Institutions
2) Banks
3) Insurance Companies
4) Mutual Funds
5) Fund Accounting

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Government Sector:

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

Current Account:

Roaming Current Account:

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

 Standard

 Classic

 Premium

 Gold

 Gold Plus

 Platinum

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

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Accounts for businesses, big and small

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

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

Anywhere cheque, national reaches:

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

Bank anytime anywhere.

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

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Better cash flows.

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

Banking on call.

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

Corporate Internet Banking.

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

Card Power.

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

Mobile Banking.

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

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Card-to-Card Transfer

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

Free daily email statement

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

Business Loans:

Money, just when customer needs it-

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

Overdraft:

Easy Access Money

 Working capital as Overdraft facility

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

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Business Instalment Loan:

Seize growth opportunities

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

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

Advantages:

 Faster loan sanctions with minimum documentation

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

Other benefits:

 Facility to deposit cash in the current account**

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

Eligibility:

 Income Tax Payee

 Good business track record
 Comfortable business vintage

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Working Capital Finance:

Managing finance is arguably the most important component of any business.

Two key business needs are access to funds at reduced, more competitive rates and
managing the balance sheet as effectively as possible.

ICICI Bank has a team of experienced customer-focused relationship managers with

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

Office Equipment Loans:

` Technological empowerment is an important and critical factor for the growth of

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

29
Office equipment financing product features include:

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

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

3) Tenure of 12 to 36 months

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

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

6) Door step service.

7) Competitive rates.

Office Equipment Loans are available to:

1) Proprietors

2) Partnership Firms

3) Companies

4) Trust & Societies

ICICI provide loan for almost all office equipment including:

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

o Copiers, scanners and multi functional devices.

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

o Gensets, inverters, UPS.

o Colour labs.

o Air conditioners, plasmas, projectors, EPABX

30
Trade:

Letter of credit:

The companies customers do business with undoubtedly have impeccable credentials.

But why to take a chance. ICICI Bank‘s Letter of Credit facility arms clients with a
guarantee of payment, especially useful while transacting with companies who they
have had limited exposure to in the past.

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

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

A sight LC is a letter of credit that is payable immediately on presentation along with

the necessary documents.

A usance LC is a letter of credit that is payable after acceptance of presented documents

and at a specified future date.

An ICICI Bank Letter of Credit offers following:

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

o Period of up to 180 days

o Security requirement.

o 25%-35% cash margin.

o 100% collateral security in the form of residential.

o First charge on current assets.

o Assessment based on a parameterised model

31
Bank Guarantee:

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

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

Services:

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

1) Automotive: The automotive sector in India is booming as Indians take to

cars and two-wheelers like never before. The world‘s biggest brands are already here,
with many more to follow. India is also fast becoming an important manufacturing hub
for the major players in the world. Their OEM suppliers are also following in their
footsteps to set up base in India. Recognising the unique needs of automotive & auto
component manufacturers, ICICI Bank has set up a team of automotive specialists who
can tailor-make a solution that suits customer‘s business.

The bank‘s long-term relationships with leading auto-manufacturers ensure customers

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

32
2) Construction: The Indian economy is growing at a rapid pace. Predictably, the
construction sector estimated at Rs. 3, 00,000 crores is booming as well, be it
infrastructure or commercial retail and residential space. An outlay of over Rs. 18,
00,000 crores is projected over the next 10 years.

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

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

3) Pharmaceuticals: Whether it's the challenges of Schedule M or awareness of best

practices, nobody understands the fundamental issues of the pharma business better than
customers. Except, perhaps, ICICI Bank.

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

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

ICICI Bank through focus, innovation and sharing. The bank‘s modern approach to
business banking backed by their superior technology helps provide swift anytime,
anywhere banking services via their branch/ATM network, phone, mobile and Internet.
33
4) Apparels: The export quota regime has been dismantled ushering in an era of open
competition. China may be the leader by far in terms of sheer volume. But there are
plenty of value opportunities both as a mass manufacturer and as a leading player in the
value-added premium segments. Many Indian suppliers are already modernizing and
diversifying their operations to meet pressures of scale and speed of delivery.

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

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

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

2) Competitively priced working capital and other products (including export

finance in foreign currency) in order to optimise costs of lending.

3) Sophisticated derivative product delivered in a simplified and convenient

manner as a source of hedging and optimising profits.

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

5) Transport: Indian road transport industry is witnessing a sea-change. Infrastructure

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

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

34
ICICI Bank offers those in the transport business a host of advantages. From faster
sanction due to parameters-based approach, to interest cost savings according to usage.
A Relationship Manager is the single point contact for all customers needs.

ICICI Bank's Roaming Current Account makes a powerful difference to customer‘s

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

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

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

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

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

35
Industry solutions

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

ICICI’s customers include

1. Hotels
2. Aviation Training Institutes
3. Money Changers
4. Tour Operators
5. Ticketing Agents Consolidators
6. Travel Vocational Training Institutes
7. Travel Portals

8) Educational Institutions: Whether the customer‘s companies are govt. aided or

privately managed, in primary, secondary or higher education, they need a bank that
understands your special needs.

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

36
DEMAT SERVICES:

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

E-Instructions: Customers can transfer securities 24 hours a day, 7 days a week

through Internet & Interactive Voice Response (IVR) at a lower cost. Now with "Speak
to transfer", customer can also transfer or pledge instructions through our customer care
officer.

Consolidation Demat Account: Customers can dematerialise the physical shares in

various holding patterns and consolidate all such scattered holdings into the primary
demat account at reduced cost.

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

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

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

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

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

37
Mutual Funds:

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

38
Domestic Mutual Funds

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

This may include the following types of funds:

1. Debt: Liquid schemes, Income schemes, G-sec schemes, Monthly Income

Schemes etc.

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

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

education Schemes etc.

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

Why to Invest?

1) Professional Money Management and Research: Mutual funds are

managed by professional fund managers who regularly monitor market
trends and economic trends for taking investment decisions. They also have
dedicated research professionals working with them who make an in depth
study of the investment option to take an informed decision.

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

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

39
 3) Convenience: With features like dematerialized account statements, easy
subscription and redemption processes, availability of NAVs and
performance details through journals, newspapers and updates and lot more;
Mutual Funds are sure a convenient way of investing.

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

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

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

6) Tax Advantages: Investment in mutual funds also enjoys several tax

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

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

Where to Invest? :

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

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

40
Advantages of Mutual Funds:

The advantages of investing in a Mutual Fund are:

 Professional Management
 Diversification
 ConvenientAdministration
 ReturnPotential
 LowCosts
 Liquidity
 Transparency
 Flexibility
 Choiceof schemes
 Tax benefits
 well regulated

41
 Insurance
1) LIFE INSURANCE:

Investment and Saving Plans

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

Life Time II

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

Protection

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

- Two levels of Sum Assured to choose from (available only with LifeTime II).
- Flexibility to increase or decrease the sum assured.
- Add-on riders to protect clients against any eventuality.

Saving:

- Flexibility to increase or decrease your contribution.

- Facility of Premium Holiday, wherein the policy continues even if there is a temporary
break in the payment of annual contribution (available only with LifeTime).
- Facility of Automatic Cover Continuance, wherein the policy continues even if there is
a temporary break in the payment of annual contribution (available with LifeTime II).
- Facility to top-up the investment any time customers have surplus funds.
- Additional allocation of units on a periodic basis.
- Loans against the policy.
42
Investment:

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

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

Invest shield Gold

A unit-linked insurance plan with an assurance of Capital Guarantee, which

offers the benefit of a limited premium payment term. An ideal plan for protection with
wealth creation that offers the flexibility of a limited premium paying term.

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

of 10, 15 or 20 years respectively.

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

of the annual premium.

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

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

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

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

- Flexibility to increase / decrease the annual premium amount

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

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

43
Premier Life:

The key features of the plan are:

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

paying term.

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

- Additional allocation of units on a periodic basis.

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

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

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

- Flexibility to decrease the sum assured.

- Add-on riders to protect against any eventuality.

- Loans against the policy.

Retirement Plans

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

44
Life Time Pension-II

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

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

Power to choose the retirement date: Take advantage of market movements by

choosing a vesting age between 45 - 75 years of age.

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

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

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

or decrease the contribution.

Child Plans

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

- Unit-linked Regular Premium

- Unit-linked Single Premium
- Regular Premium Smart Kid
45
2) GENERAL INSURANCE:

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

2 Years comprehensive medical cover for family

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

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

Covers both structure and contents of home

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

Car Insurance - for the four-wheelers in India

Transfer no claim bonus (NCB)

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

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

No documentation. Instant policy issuance

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

46
Student Medical Insurance - for staying abroad during studies

Pay in Rupees, save in Dollars

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

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

Secure home and the loan against it

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

Wealth Management:

Wealth is the result of a recognized opportunity. ICICI bank understands this

and they work with customers to plan and manage their financial opportunities
prudently. Not just that, the bank also extend a host of services so that customers can
remain focused on immediate objectives while the bank takes care of all the wealth
management requirements.

TEAM:

A perfect partnership is about similar perspectives

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

47
PORTFOLIO BUILDING:

The investment process starts with understanding customer – their background,

investment objectives, risk tolerance and existing investment pattern. A comprehensive
Client Profiling exercise helps the bank in evaluating customer‘s risk appetite and
understanding their investment objectives, which are kept in mind while building their
portfolio.

48
Investment Planning

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

Portfolio Construction

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

Portfolio Maintenance

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

Portfolio Review

As the customer‘s investment preferences or financial goals change over a period of

time, the banks review their portfolio periodically with the clients to discuss and
implement any changes in asset allocation or portfolio strategy. All with a view to
keeping the portfolio healthy at all times.

Products:

Online Trading

Mutual Funds

Life & General Insurance

49
RESEARCH:

Objective of Research:

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

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

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

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

This was done to find out that how much knowledge do the customers have about the
various products of the ICICI Bank.

Before assigning the project:

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

50
Research Work:

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

Field Work:

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

Step by step procedure of the survey:

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

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

51
3) Lack of knowledge: After this interaction I came to know that some of the
people do not have adequate knowledge about market risks & how to achieve
superior returns. Many people were confused about the proper investments &
their returns. They were confused about the securing their future using various
investment plans. Some of the customers were happy by not investing in the
schemes as they thought that they will lose their principal amount because they
do not have proper knowledge.

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

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

6) Agreed for Investment: After the solution of the queries some of the customers
get convinced to invest in the Mutual funds of ICICI bank.

52
Analysis of Survey:

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

Q1) How would you like to invest your savings?

6% 7%
8%
F.D
Direct Euity
32%
Real Estate
Mutual Funds
Gold
47%

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

53
Q2) How much comfortable are you to invest in equity (or market risk) products?

0 2%

very
42%
Just

56% Not

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

54
Q3) what are the major threats in investing money in mutual funds or direct
equity?

2%

4%
12%

Capital Loss
Low Returns
Less Expertise
Stock Collection

82%

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

55
Q4) which investment style do you prefer most?

19%

2%
Growth
0
Value
Others

79%

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

56
Q5) What do you expect from your investment in various portfolios?

2%

9%
6%

Principal Protection
Wealth Creation
Superior Returns
Store of Value

82%

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

57
Q6) Which do you think is more profitable?

10%

21%

0 Real Estate
Gold Equity
FD

69%

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

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

2%
5%

11% 1 Year
1-3 Years
3-5 Years
>5 Years

82%

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

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

0
5% 3%

Large
Mid
Small

92%

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

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

5%
13%
3% Yes
No
Will Think
Don't Know

79%

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

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Results & Discussion:

Challenge:

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

Objective of ICICI Bank:

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

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

Chanda Kochhar
Joint Managing Director
ICICI Bank Limited

Main challenge faced by the company is retention of clients as well as

increasing its number of clients. The major objective of the survey
was to increase the awareness among customers about the products of
ICICI Bank and about the recent policies and schemes of ICICI bank .

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Possible Solution:

Strategic adoption of technology to ensure that ICICI transforms into a universal bank,
which will provide fast and efficient customer service besides offering the whole gamut
of banking and financial services.
The retention of clients can be done with better relationship building, proper interaction
and proper care of clients. By understanding the basic needs of the customers & by
analysing the financial situation of the customers the clients can be easily retained. The
approach of the company should not be product centric. It should primarily focus on
clients and their needs. The risk appetite of the customers should be calculated properly.
The company should understand that when and under what circumstances the clients
need money. The company should target on fulfilling the short as well as long term
goals.
The company should review the portfolio of clients time to time. By proper monitoring
and rebalancing the portfolio at regular intervals the clients should be retained without
any problem.
From the survey ICICI bank gained the knowledge about their various customers & that
there is lack of knowledge among some customers. Through this survey the customers
came to know about the schemes & policies of ICICI bank and also various product
offerings of ICICI bank.

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

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Conclusion & Recommendation:

Dedicated workforce to serve people:

Across India, ICICI Bank has Regional Sales Managers to look after Indian &
NRI Requirements and the Region has a dedicated Investment Officer. Before being
deputed, the officers complete a comprehensive Knowledge Belt Certification program
and, once deputed, they receive thorough instructions in financial planning skills and
techniques. Throughout their careers officers also attend programs to update their skills.
To Service people, when you are abroad, ICICI bank have an ETC Team (Email,
Telecalling & Chat Team) which can help people invest in India Mutual Funds.
All officers in charge of Mutual Funds are certified professionals by AMFI
(Association of Mutual Funds in India)
Many of these officers also hold professional degrees like MBA, CA, ICWA,
CFA etc. Therefore, People should invest their money in ICICI Bank with the help of
Wealth Managers. These wealth managers not only help in achieving superior returns;
they also help the customers from Capital loss.

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Implications for Future Research:

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

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

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

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

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REFERENCES

1) Toor, N.S(2005). Handbook of Banking Information

2) David Aaker, Kumar, George Day. Market Research(2001), John Willey & Sons.

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

Company

4) Product Offering Brochures, ICICI Bank

5) ICICI Bank website: www.icicibank.com

6) Amfi India website: www.amfiindia.com

7) Google website: www.google.com

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Questionnaire:

Name:

Gender:

Age:

Email-id:

Contact No:

Address:

Q1) How would you like to invest your savings?

a) F.D.

b) Direct Equity

c) Real Estate

d) Mutual Funds

e) Gold

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

a) Very b) Just c) Not

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

a) Capital Loss

b) Low Returns

c) Less Expertise

d) Stock Collection

Q4) which investment style do you prefer most?

a) Growth

b) Value

c) Others

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

a) Principal Protection

b) Wealth Creation

c) Superior Returns

d) Store of Value

Q6) Which do you think is more profitable?

a) F.D.

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b) Real Estate

c) Gold

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

a) 1Year

b) 1-3 Years

c) 3-5 Years

d) >5 Years

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

a) Large

b) Mid

c) Small

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

a) Yes

b) No

c) Will Think

d) Don‘t Know

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