COMPARATIVE STUDY ON PERFORMANCE EVALUATIONOF MUTUAL FUND SCHEMES OF ICICI & HDFCABSTRACT

In this paper the performance evaluation of Indian mutual funds is carried out through relative performance index, risk-return analysis, Treynor's ratio, Sharp's ratio, Sharp's measure, Jensen's measure, and Fama 's measure. The data used is daily closing NAVs. The source of data is website of Association of Mutual Funds in India (AMFI). The study period is 1st January 2007 to 31stDecember, 2011. The results of performance measures suggest that most of the mutual fund have given positive return during 2007 to 2011.INTRODUCTION:

Mutual Funds have become a widely popular and effective way for investors to participate in financial markets in an easy, low-cost fashion, while muting risk characteristics by spreading the investment across different types of securities, also known as diversification. It can play a central role in an individual's investment strategy. They offer the potential for capital growth and income through investment performance, dividends and distributions under the guidance of a portfolio manager who makes investment decisions on behalf of mutual fund unit holders. Over the past decade, mutual funds have increasingly become the investors vehicle of choice for long-term investment. It becomes pertinent to study the performance of the mutual fund. The relation between risk-return determines the performance of a mutual fund scheme. As risk is commensurate with return, therefore, providing maximum return on the investment made within the acceptable associated risk level helps in segregating the better performers from the laggards. Many asset management companies are working in India, so it is necessary to study the performance of it which may be useful for the investors to select the right mutual fundOBJECTIVES OF THE STUDY:

1. To evaluate and compare the performance of equity diversified mutual fund schemes of selected companies

2. To compare the performance of equity diversified mutual fund schemes of selected companies vis--vis the market

History of Mutual Funds in IndiaThe first Indian mutual fund was set up in 1963, when theGovernment of Indiacreated theUnit Trust of India(UTI). Until 1987, UTI enjoyed a monopoly in the Indian mutual fund market and sold a range of mutual funds through a network of financial intermediaries. At the end of 1988 UTI had Rs. 6,700croresof assets under management.[1]In 1987, theGovernment of Indiapermittedpublic sectorbanks and theLife Insurance Corporation of India(LIC) andGeneral Insurance Corporation of India(GIC) to enter the mutual fund industry. TheState Bank of India'sSBI Mutual Fundwas the first such mutual fund to be established in 1987.Canara Bankset up Canbank Mutual Fund shortly after in the same year, followed by funds fromPunjab National BankandIndian Bankin 1989,Bank of Indiain 1990 andBank of Barodain 1992. TheLICestablished its mutual fund in 1989 and theGICin 1990. At the end of 1993, the mutual fund industry had assets under management of Rs. 47,004crores.[2]in 1993, with the creation ofSEBIand better regulation, transparency and liberalisation of capital markets (which included the creation of theNSEand theNSDL), the private sector was allowed to enter the mutual fund industry. Kothari Pioneer Mutual Fund (now merged intoFranklin Templeton Investments) was the first private sector mutual fund to be registered in July 1993. In the following years, international giants in the industry as well as Indian corporates and industrial families setting up their own mutual funds, purchasing existing fund companies or merging with them. At the end of January 2003, there were 33 mutual funds with assets totalling Rs. 1,21,805crores. TheUTIstill led the pack with Rs. 44,541croresworth of assets. In February 2003, faced with financial mismanagement, opaque bookkeeping and huge, growing liabilities at the UTI, theGovernment of Indiasuspended redemptions, guaranteed the assets, unveiled a comprehensive suite of reforms and repealed the Unit Trust of India Act 1963.[3]TheUTIwas split into two parts.[4]One was called the "Specified Undertaking of the Unit Trust of India" with Rs. 29,835croresof assets largely belonging to the UTI's Unit 64 fund. The fund was rumoured to own property, commodities and a whole range of unconventional and often undocumented assets. The fund would attract millions of investors by promising generous annual dividends that were far in excess of the returns on its actual portfolio.[5]This Specified Undertaking of Unit Trust of India, functioned under an administrator appointed by Government of India, outside ofSEBI's purview, until it was eventually liquidated in 2008. TheGovernmentasked theSBI,PNB,BOBandLICto step in as sponsors of the second part, now calledUTI Mutual Fund(in addition to being sponsors of their own mutual funds) underSEBI's regulation. As of 30 June 2013, the Indian mutual fund industry manages assets worth approximately Rs.847,000croresRegulation and DistributionThe erstwhileUnit Trust of India(UTI) was set up by theReserve Bank of Indiain 1963 and functioned under its regulatory and administrative control. In 1978, theIndustrial Development Bank of India(IDBI) took over regulatory and administrative control of theUTI.[7]TheGovernment of Indiaenacted theSecurities and Exchange Board of India Act, 1992on 4 April 1992 which created theSecurities and Exchange Board of India(SEBI). SEBI issued a comprehensive set of regulations in 1993 and revised them again in 1996. These included regulations covering the Indian mutual fund industry. All mutual funds in India today are regulated by SEBI. TheAssociation of Mutual Funds of India(AMFI) is a self-governing association of Indian Mutual Funds that regulates its members' sales, distribution and communication practices. Investors can invest in Indian mutual funds directly or through distributors under codes of practice developed by AMFI.

Mutual funds are under tapped market in India (section appears subjective and requires review) Despite being available in the market for over two decades now withassets under managementequaling Rs 7,81,71,152 Lakhs (as of 28 February 2010),[8]less than 10% of Indian households have invested in mutual funds. A recent report on Mutual Fund Investments in India published by research and analytics firm, Boston Analytics, suggestsinvestorsare holding back from putting their money into mutual funds due to their perceived high risk and a lack of information on how mutual funds work.[9]This report is based on a survey of approximately 10,000 respondents in 15 Indian cities and towns as of March 2010. There are 46 Mutual Funds as of June 2013. The primary reason for not investing appears to be correlated with city size. Among respondents with a highsavings rate, close to 40% of those who live in metros and Tier I cities considered suchinvestmentsto be very risky, whereas 33% of those in Tier II cities said they did not know how or where to invest in suchassets.

Reasons for not investing in mutual funds in India

On the other hand, among those who invested, close to nine out of tenrespondentsdid so because they felt these assets were more professionally managed than other asset classes. Exhibit 2 lists some of the influencing factors for investing in mutual funds. Interestingly, while non-investors cite "risk" as one of the primary reasons they do not invest in mutual funds, those who do invest consider that they are "professionally managed" and "more diverse" most often as their reasons to invest in mutual funds versus other investments.

A mutual fund is a type of professionally managed collective investment vehicle that pools money from many investors to purchase securities. While there is no legal definition of the term "mutual fund", it is most commonly applied only to those collective investment vehicles that are regulated and sold to the general public. They are sometimes referred to as "investment companies" or "registered investment companies." Most mutual funds are "open-ended," meaning investors can buy or sell shares of the fund at any time. Hedge funds are not considered a type of mutual fund.

Reasons for investing in mutual funds in India

Vision To build Indias premier investment management company by offering our clients a disciplined research and investment process to take advantage of the long-term investment opportunities that exist across various asset classes - while balancing the inherent risks of investing in an evolving market

Mission Quantum Mutual Fund will serve its investors with the highest standards of integrity, ethics, and transparency. As a company, Quantum will nurture a partnership culture to retain and reward its employees.Assets under management (AUM) is a financial term denoting the market value of all the funds being managed by a financial institution (a mutual fund, hedge fund, private equity firm, venture capital firm, or brokerage house) on behalf of its clients, investors, partners, depositors, etc.The averageAssets under managementof all Mutual funds in India for the quarter Jul-13 to Sep-13 (in INR billion) is given below:Mutual Fund Objectives Here are some of the main forms of mutual fund objectives that we commonly see:

Growth Mutual Funds Probably the most common mutual fund objective is investing for growth. What investor doesnt want growth right? Even income investors want growth. A growth mutual fund simply wants his assets to appreciate over time. Growth mutual funds are generally invested primarily in the stock market and include stock market sectors from small to large cap.

Income Mutual Funds The second more common mutual fund objective is investing for income. Many investors typically those who are older and looking for cash flow to supplement their income want an income distribution from their investment. Income mutual funds typically will distribute cash payments based on how many shares you own every month and the income generally varies over time. Most income mutual funds will invest in all types of bonds as well as some high quality dividend paying stocks and hybrids like preferred stocks.

Socially Responsible Mutual Funds Some investors prefer to invest with social responsibility as their focus. There are various types of socially responsible mutual funds. A socially responsible mutual fund will either invest FOR an objective (for example green energy) or AGAINST an objective (avoiding alcohol, tobacco and firearms).

Sector Mutual Funds Some mutual funds will invest only in a specific sector, such as biotechnology or healthcare. This provides them exposure to advances in smaller sections of the economy, such as when money floods into technology sectors due to the advent of a faster computer chip or more stable programming platform.

There are many types of mutual funds, and classifying them by objective is just one method. Other methods include size of the assets invested in, style of the manager or the asset class exposure itself.

Regardless of how you choose to review and classify mutual funds for investment, its important to diversify your portfolio across many sectors, sizes, and types of asset classes.

Advantages of Mutual Funds

Mutual funds are professionally managed pooled investment vehicles. The mutual fund manager combines investors of certain types together, and manages their assets as one giant pool on their behalf. While many investors prefer to tradeindividual stocksand bonds, most investors are far better served investing through mutual funds, the advantages of mutual funds are far too great to pass up!

Mutual funds offer the following advantages over owning/trading individual stocks and bonds:

Diversification The number one benefit of mutual fund investing is the diversification that a mutual fund offers its investors. Rather than trying to diversify a portfolio of individual stocks and bonds, the investor has access to dozens, hundreds or thousands of stocks and bonds through the mutual fund portfolio.

Professional Management Rather than invest on your own, mutual funds offer investors access to professionalmoney managers. Most investors dare I say ALL investors who dont work in the field should be using professional money managers. You dont change the oil in your car, diagnose your own medical issues or sell your home unassisted why would you dreamof investingyour assets on your own without the help or assistance of a professional? One answer overconfidence! As Americans we are notoriously overconfident in our own abilities (which can really lead to the demise of our finances in many cases).

Low Fees While most mutual funds have fees that are TOO HIGH, there are many mutual funds that have fees which are very reasonable and provide a great value for the service provided. The average mutual fund management fee (source Morningstar) is right around 1.25% currently. Thats a lot when you consider its only a start (there are other fees associated with mutual funds). But other mutual funds such asDimensional Fund AdvisorsandVanguardoffer access to great mutual funds for .10% to .50% dpeending on which asset class youre using. Ourprivate investment clients in Las Vegastypically enjoy low portfolio blended fees of about .35% for complete diversification among 42 countries.

Access To Investments You May Not Normally Have While anyone can trade individual stocks and bonds, not everyone can access other investment vehicles which are typically reserved for higher net worth individuals (some real estate investments, limited partnership investments, commodities etc.).

Convenience Its super easy to buy and sell mutual funds.

Liquidity Mutual fund shares are highly liquid, and price either during the day (exchange traded funds) or once per day after the market close (open ended mutual funds).

Regulations Mutual funds are heavily regulated by government agencies including theSEC. Financial advisorswho recommend mutual funds are also heavily regulated byFINRA.

Access to Specific Asset Classes There are so manytypes of mutual fundsand classifications thereof. You can target any number of investments with mutual funds and get broad diversification through mutual funds. This is one of the huge advantages of mutual funds.

Mutual Fund Investment Parameters

In 17 years Ive found that almost every investor investsin mutual fundsbased on one thing performance! Ive even caught clients with a list of the funds they own and variations of stars besides their names (obviously theyd visited Morninstar).

Maybe a secondary mutual fund investment goal is income, or growth, or some other sort of balanced approach. But most investors invest for performance!

Yesterday I had a new potential client call in, ask me in a very abrupt tone to pick the bestmunicipal bondfunds forhim. I replied that was backwards, and that the plan hisretirement plan should dictate what asset classes he owns and in what percentages. He was exhibiting typical investor behavior in this timing and selection culture.

I suppose I could have taken his money and given him a list of mutual funds. But it never would have worked. His mutual fund investment recommendations wouldnt have necessarily had 5 stars, or Forbes Honor Roll statistics, or anything else. Certainly this gentleman would have questioned why I recommend the mutual funds I did. The fact is I never put any mutual funds on my recommended list without an extensive 11 step scrubbing process (specifically the one I wholeheartedly endorse byFi360).

The cold hard fact is this is completely wrong, counterproductive, and frankly INSANE! Statistics show consistently that investment performance specifically mutual fund investment performance does not repeat itself with any consistency or accuracy. If anything, the only consistency in mutual fund investing is that the best mutual funds tend to fall towards the bottom of the heap. Therefore chasing mutual fund performance is somewhat of a fools errand.

ICICI Bank Limited

TypePrivate

Traded asBSE:532174NSE:ICICIBANKNYSE:IBNBSE SENSEX ConstituentCNX Nifty Constituent

IndustryBanking,Financial services

Founded1954

HeadquartersMumbai,India

Area servedWorldwide

Key peopleK.V. Kamath(Chairman)Ms.Chanda Kochhar(MD & CEO)

ProductsCredit cards,Consumer banking,corporate banking,finance and insurance,investment banking,mortgage loans,private banking,wealth management

RevenueUS$13.52 billion (2012)[1]

Operating incomeUS$2.12 billion (2012)[1]

ProfitUS$1.60 billion (2012)[1]

Total assetsUS$ 98.99 billion (2012)[1]

Total equityUS$ 12.62 billion (2012)[1]

Employees81,254 (2012)[1]

ICICI Bank

From Wikipedia, the free encyclopediaICICI Bankis an Indian multinationalbankingandfinancial servicescompany headquartered inMumbai. It is the second largest bank in India by assets and bymarket capitalzation, as of 2014. It offers a wide range of banking products and financial services to corporate andretail customersthrough a variety of delivery channels and through its specialized subsidiaries in the areas ofinvestment banking,life,non-life insurance,venture capitalandasset management. The Bank has a network of 3,539 branches and 11,162[2]

HYPERLINK "http://en.wikipedia.org/wiki/ICICI_Bank" \l "cite_note-3" [3]ATMsin India, and has a presence in 19 countries.[4]

HYPERLINK "http://en.wikipedia.org/wiki/ICICI_Bank" \l "cite_note-5" [5]ICICI Bank is one of theBig Four banksof India, along withState Bank of India,Punjab National BankandBank of Baroda. The bank has subsidiaries in the United Kingdom, Russia, and Canada; branches in United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International Finance Centre; and representative offices in United Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia. The company's UK subsidiary has also established branches in Belgium and Germany.[6]In March 2013,Operation Red Spidershowed high-ranking officials and some employees of ICICI Bank involved inmoney laundering. After agovernmentinquiry, ICICI Bank suspended 18 employees and faced penalties from theReserve Bank of Indiain relation to the activity.[7]

HYPERLINK "http://en.wikipedia.org/wiki/ICICI_Bank" \l "cite_note-Probes_Begin_as_Top_Indian_Banks_Are_Embroiled_in_Sting_Operation-8" [8]

HYPERLINK "http://en.wikipedia.org/wiki/ICICI_Bank" \l "cite_note-India.27s_Private_Banks_Under_Scanner:_Is_RBI_to_be_Blamed_for_Money_Laundering.3F-9" [9]

HYPERLINK "http://en.wikipedia.org/wiki/ICICI_Bank" \l "cite_note-Cobrapost_expose:_IRDA_report_likely_next_week-10" [10]

HYPERLINK "http://en.wikipedia.org/wiki/ICICI_Bank" \l "cite_note-Cobrapost_expose:_RBI_initiating_action_against_banks_over_money_laundering_allegations-11" [11]Contents

1Corporate history 2Corporate governance 3Creation of market infrastructure in India 4Corporate Social Responsibility programmes for Elementary Education 5Products 5.1'Pockets by ICICI Bank' 5.2MySavings Rewards 5.3iWish- the flexible recurring deposit 6Go Green Initiative 6.1Objective 6.2Green products and services 6.3Carbon Footprint Calculator 7Subsidiaries 7.1Domestic 7.2International 8Acquisitions 9Awards 10Controversies 10.1Inhuman debt recovery methods 10.2Money laundering allegations 11Credit rating 12See also 13References 14External linksCorporate historyICICI Bank was established by theIndustrial Credit and Investment Corporation of India (ICICI), an Indian financial institution, as a wholly owned subsidiary in 1955. The parent company was formed in 1955 as a joint-venture of theWorld Bank, India's public-sector banks and public-sector insurance companies to provide project financing to Indian industry.[12]

HYPERLINK "http://en.wikipedia.org/wiki/ICICI_Bank" \l "cite_note-13" [13]The bank was initially known as theIndustrial Credit and Investment Corporation of India Bank, before it changed its name to the abbreviatedICICI Bank. The parent company was later merged with the bank.

ICICI Bank launched internet banking operations in 1998.[14]ICICI's shareholding in ICICI Bank was reduced to 46percent, through a public offering of shares in India in 1998, followed by an equity offering in the form ofAmerican Depositary Receiptson theNYSEin 2000. ICICI Bank acquired theBank of Madura Limitedin an all-stock deal in 2001 and sold additional stakes to institutional investors during 2001-02.

In the 1990s, ICICI transformed its business from a development financial institution offering only 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, ICICI become the first Indian company and the first bank or financial institution from non-Japan Asia to be listed on the NYSE.[15]In 2000, ICICI Bank became the first Indian bank to list on the New York Stock Exchange with its five million American depository shares issue generating a demand book 13 times the offer size.

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 theHigh Court of Gujaratat Ahmedabad in March 2002 and by the High Court of Judicature at Mumbai and the Reserve Bank of India in April 2002.[16]In 2008, following the2008 financial crisis, customers rushed to ICICI ATMs and branches in some locations due to rumours of adverse financial position of ICICI Bank. The Reserve Bank of India issued a clarification on the financial strength of ICICI Bank to dispel the rumours.[17]Corporate governance Group Anti Money Laundering Policy: The ICICI Group AML Policy establishes the standards of AML compliance and is applicable to all activities.

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

Creation of market infrastructure in IndiaICICI Bank has contributed to set up different institutions which include the following:

National Stock Exchange

The National Stock Exchange was promoted by Indias leading financial institutions (including ICICI Ltd.) in 1992 on behalf of the Government of India with the objective of establishing a nationwide trading facility for equities, debt instruments and hybrids, by ensuring equal access to investors all over the country through an appropriate communication network.

Credit Rating Information Services of India Limited

In 1987, ICICI Ltd along withUTIset up CRISIL as India's first professionalcredit rating agency.CRISILoffers a comprehensive range of integrated products and service offerings which include credit ratings, capital market information, industry analysis and detailed reports.[21]National Commodities and Derivatives Exchange Limited

NCDEXis a professionally managed online multi-commodity exchange, set up in 2003, by ICICI Bank Ltd, LIC,NABARD, NSE,Canara Bank, CRISIL, Goldman Sachs,Indian Farmers Fertiliser Cooperative Limited(IFFCO) andPunjab National Bank.[22]Financial Innovation Network and Operations Pvt Ltd.

ICICI Bank has facilitated setting up of "FINO Cross Link to Case Link Study" in 2006, as a company that would provide technology solutions and services to reach the underserved andunderbankedpopulation of the country. Using cutting edge technologies likesmart cards,biometricsand a basket of support services, FINO enables financial institutions to conceptualise, develop and operationalise projects to support sector initiatives inmicrofinanceand livelihoods.[23]Entrepreneurship Development Institute of India

Entrepreneurship Development Institute of India (EDII), an autonomous body and not-for-profit society, was set up in 1983, by the erstwhile apex financial institutions like IDBI, ICICI, IFCI and SBI with the support of theGovernment of Gujaratas a national resource organisation committed to entrepreneurship development, education, training and research.[24]North Eastern Development Finance Corporation

North Eastern Development Finance Corporation (NEDFI) was promoted by national level financial institutions like ICICI Ltd in 1995 at Guwahati, Assam for the development of industries, infrastructure, animal husbandry, agri-horticulture plantation, medicinal plants, sericulture, aquaculture, poultry and dairy in the North Eastern states of India. NEDFI is the premier financial and development institution for the North East region.[25]Asset Reconstruction Company India Limited

Following the enactment of the Securitisation Act in 2002, ICICI Bank together with other institutions, set up Asset Reconstruction Company India Limited (ARCIL) in 2003, to create a facilitative environment for the resolution of distressed debt in India. ARCIL was established to acquire non performing assets (NPAs) from financial institutions and banks with a view to enhance the management of these assets and help in the maximisation of recovery. This would relieve institutions and banks from the burden of pursuing NPAs, and allow them to focus on core banking activities.[26]

HYPERLINK "http://en.wikipedia.org/wiki/ICICI_Bank" \l "cite_note-27" [27]Credit Information Bureau of India Limited

ICICI Bank has also helped in setting up Credit Information Bureau of India Limited (CIBIL), Indias first national credit bureau in 2000. CIBIL provides a repository of information (which contains the credit history of commercial and consumer borrowers) to its members in the form of credit information reports. The members of CIBIL include banks, financial institutions, state financial corporations, non-banking financial companies, housing finance companies and credit card companies.

Institutional Investor Advisory ServicesIndia Limited (IiAS)

ICICI Bank has indirectly invested, through ICICI Prudential Life Insurance Company, in IiAS. IiAS is a voting advisory firm akaproxy firm, dedicated to providing participants in the Indian market with data, research and commentary. It provides recommendations on resolutions placed before shareholders of over 300 companies.

Corporate Social Responsibility programmes for Elementary Education Read to Lead Phase I: Read to Lead is an initiative of ICICI Bank to facilitate access to elementary education for underprivileged children in the age group of 314 years including girls and tribal children from the remote rural areas. The Read to Lead initiative supports partner NGOs to design and implement programmes that mobilise parent and community involvement in education, strengthen schools and enable children to enter and complete formal elementary education. Read to Lead has reached out to 100,000 children across 14 states of Andhra Pradesh, Bihar, Delhi, Gujarat, Haryana, Jharkhand, Karnataka, Maharashtra, Orissa, Rajasthan, Tamil Nadu, Tripura, Uttar Pradesh and West Bengal.[29] Read to Lead Phase II:

In Phase II of the Read to Lead programme, ICICI Bank has supported the establishment of 63 libraries that will reach out to approximately 7,200 children in the rural areas of Jagdalpur block of Bastar district in Chhattisgarh. The programme includes building libraries, sourcing books and conducting various interactive activities to make the library a dynamic centre for learning.[citation needed]Products'Pockets by ICICI Bank'In September 2013, ICICI Bank launched a first of its kind app onFacebook'Pockets by ICICI Bank'across the globe to enable customers to carry out a wide range of financial transactions on Facebook[30]Customers can access the ICICI Bank app[31]by logging into their Facebook account and then going to the official ICICI Bank Facebook page, and clicking on the tab for Pockets by ICICI Bank. The customer then registers online with theirdebit cardnumber and PIN, and selecting a new four digit PIN for subsequent logins.[32]Through the app, customers can make payments to friends, rechargeprepaid mobileand bookmovie tickets. One can also carry out non-financial transactions such as accessing a mini statement of theirsavings bankaccount, gettingdematholding statements, opening fixed orrecurring deposit, order acheque book, stop achequepayment, upgrade debit card, among others.

Some of the key features of 'Pockets by ICICI Bank' are:Split n share:It allows customers to split and track group expenses and share them with friends on Facebook. The app also gives the customer the option of sending messages to remind friends on pending payments.

Pay a friend:It allows customers to transfer funds to their friends without knowing their bank account details like account number,bank branch, branch IFSC code etc. Through this facility, customers can create electronic coupons that can be redeemed by their friends on the bank websiteicicibank.comMy Savings RewardsICICI Bank has rolled-out the programme MySavings Rewards from 1 September 2012, where reward points are offered to individual domestic customers for a variety of transactions done through the savings bank account. Reward points are offered automatically to customers for activatingInternet banking,shopping online/ paying utility bills with Internet banking and auto-debit from savings account towards equated monthly installments for home/ auto/ personal loan/ recurring deposit. Customers are required to maintain a monthly average balance of 15,000 or more.[35]Customers can redeem their reward points by logging into his ICICI Bank internet banking account

Calling up customer care

Walking into the nearest ICICI Bank branch

I Wish- the flexible recurring depositiWish is a flexible recurring deposit product launched by ICICI Bank for its savings account customers. iWish is a fun and flexible way to encourage savings among youth for fulfilling aspirations. Unlike a traditionalrecurring deposit, iWish allows customers to save varying amounts of money at any time of their choice. Customers can create several goals and track their progress on an easy-to-use online interface. They can also share their wishes onFacebookand let their friends and family be a part of their dreams by contributing to their account from any bank account. There will be no penalties if a customer misses his monthly contribution to the recurring deposit. The minimum duration is six months and a customer can open this account starting with 500.[36]The key features of iWish are: Flexibility:Flexible recurring deposit allows a customer to deposit any amount at any point of time. Customers also have an option of depositing money by giving a standing instruction.

Better returns:Customers can earn recurring deposit interest rates on their iWish account while enjoying the freedom of not having to deposit every month.

Sharing:Customers can choose to share their wishes on Facebook and let their friends and family be part of their dreams.

Contributions:iWish gives an opportunity to the family and friends of a customer to contribute and help him attain his aspirations faster. Contributions can be made from any bank account using a VISA debit card.

ICICI Bank has developed this product in collaboration with Social Money.

Go Green InitiativeThe Go Green Initiative is an organisation wide initiative that moves beyond moving people, processes and customers to cost effective automated channels to build awareness and consciousness of our environment,our nation and our society.

ObjectiveICICI Banks Green initiative is to make healthy environment in the organisation i.e.; to create intrapersonal skills amongs the customer and understanding between employees of the organisation.

Broad objectives of the ICICI are:

(a) to assist in the creation, expansion and modernisation of private concerns;

(b) to encourage the participation of internal and external capital in the private concerns;

(c) to encourage private ownership of industrial investment.

Green products and servicesInstabanking

It is the platform that brings together all alternate channels under one umbrella and gives customers the option of banking through Internet banking, i-Mobile banking, IVR Banking. This reduces the carbon footprint of the customers by ensuring they do not have to resort to physical statements or travel to their branches.

Vehicle Finance

As an initiative towards more environment friendly way of life, Auto loans offer 50% waiver on processing fee on car models which uses alternate mode of energy. The models identified for the purpose are, Maruti's LPG version of Maruti 800, Omni and Versa, Hyundai's Santro Eco, Civic Hybrid of Honda, Reva electric cars, Tata Indica CNG and Mahindra Logan CNG versions.

Carbon Footprint CalculatorInputs include region, user input of the distance traveled in a particular medium of transport daily, electricity consumed per month and LPG cylinder/piped natural gas used per month. It calculates the net carbon footprint to create awareness and sensitize people about the environment.It also shows the world's and India's average carbon footprint. SubsidiarieDomestic ICICI Prudential Life Insurance Company Limited

ICICI LombardGeneral Insurance Company Limited

ICICI Prudential Asset Management Company Limited

ICICI Prudential Trust Limited

ICICI Securities Limited

ICICI Securities Primary Dealership Limited

ICICI Venture Funds Management Company Limited

ICICI Home Finance Company Limited

ICICI Investment Management Company Limited

ICICI Trusteeship Services Limited

ICICI Prudential Pension Funds Management Company Limited[40]International ICICI Bank UK PLC

ICICI Bank Canada

ICICI Bank Eurasia Limited Liability Company

ICICI Securities Holdings Inc.

ICICI Securites Inc.

ICICI International LImited

Acquisitions 1996: SCICI Ltd. A diversified financial institution with headquarters in Mumbai

1997: ITC Classic Finance. Incorporated in 1986, ITC Classic was a non-bank financial firm that engaged in hire, purchase, and leasing operations. At the time of being acquired, ITC Classic had eight offices, 26 outlets, and 700 brokers.

1998: Anagram Finance. Anagram had built up a network of some 50 branches in Gujarat, Rajasthan, and Maharashtra that were primarily engaged in retail financing of cars and trucks. It also had some 250,000 depositors.

2001:Bank of Madurai 2002: TheDarjeelingandShimlabranches ofGrindlays Bank 2005: Investitsionno-Kreditny Bank (IKB), a Russian bank

2007: Sangli Bank. Sangli Bank was a private sector unlisted bank, founded in 1916, and 30% owned by the Bahte family. Its headquarters were in Sangli inMaharashtra, and it had 198 branches. It had 158 in Maharashtra and 31 inKarnataka, and others in Gujarat, Andhra Pradesh, Tamil Nadu, Goa, and Delhi. Its branches were relatively evenly split between metropolitan areas and rural or semi-urban areas.

2010: TheBank of Rajasthan(BOR) was acquired by the ICICI Bank in 2010 for 3,000 crores. RBI was critical of BOR's promoters not reducing their holdings in the company. BOR has since been merged with ICICI Bank.

ControversiesInhuman debt recovery methodsA few years after its rise to prominence in the banking sector, ICICI bank faced allegations on the recovery methods it used against loan payment defaulters. A number of cases were filed against the bank and its employees for using "brutal measures" to recover the money. Most of the allegations were that the bank was using goons to recover the credit card payments and that these "recovery agents" exhibited inappropriate and in some cases, inhuman behavior. Incidents were reported wherein the defaulters were put to "public shame" by the recovery agents.

The bank also faced allegations of inappropriate behavior in recovering its loans. These allegations started initially when the "recovery agents" and bank employees started threatening the defaulters. In some cases, notes written by the bank's employees asking the defaulters to "sell everything in the house including family members", were found. Such charges faced by the bank rose to a peak when suicide cases were reported wherein the suicide notes spoke of the Bank's recovery methods as the cause of the suicide. This led to a lot of legal battles and the bank paying huge compensations

Money laundering allegationsICICI Bank was one of the leading Indian banks accused of blatantmoney launderingthrough violation of RBI guidelines in the famous CobraPost[93]sting operation which shook up Indian banking industry during AprilMay 2013.[94]On 14 March 2013 the online magazine Cobrapost released video footage fromOperation Red Spidershowing high-ranking officials and some employees of ICICI Bank agreeing to convert black money into white, an act in violation ofMoney Laundering Control Act. TheGovernment of IndiaandReserve Bank of Indiaordered an inquiry following theexpos. On 15 March 2013, ICICI Bank suspended 18 employees, pending inquiry.[7]

HYPERLINK "http://en.wikipedia.org/wiki/ICICI_Bank" \l "cite_note-Probes_Begin_as_Top_Indian_Banks_Are_Embroiled_in_Sting_Operation-8" [8]

HYPERLINK "http://en.wikipedia.org/wiki/ICICI_Bank" \l "cite_note-India.27s_Private_Banks_Under_Scanner:_Is_RBI_to_be_Blamed_for_Money_Laundering.3F-9" [9]On 11 April 2013 Deputy Governor ofRBI, H R Khan reportedly told that the central bank is initiating action against ICICI Bank in connexion with allegations of money laundering.[10]

HYPERLINK "http://en.wikipedia.org/wiki/ICICI_Bank" \l "cite_note-Cobrapost_expose:_RBI_initiating_action_against_banks_over_money_laundering_allegations-11" [11]Credit rating[edit]On account of the growing concerns over India's sovereign debt ratings,credit ratings agency Moody's lowered the ratings for ICICI Bank from Baa3 to Baa2 in May 2012

See also

List of companies of India List of banks in India ICICI Lombard ICICI Manipal Academy of Banking and Insurance ICICI Prudential ICICI Bank on Wikinvest