A REPORT ON THE SUMMER ASSIGNMENTTITLED

BANKING WITH “EXCLUSIVITY & CONVENIENCE”~THE PRIVILEGED CLUB~

UNDERTAKEN AT

ICICI BANKAHMEDABAD & GANDHINAGAR

SUBMITTED TO

N.R.INSTITUTE OF BUSINESS MANAGEMENT

SUBMITTED ON

24TH JULY 2004

SUBMITTED BY

POOJA VYAS (3109)

ACKNOWLEDGEMENTS

This project has indeed been a very interesting and enriching experience. I would like to take this opportunity to thank all those who have directly or indirectly contributed to the successful completion of my summer assignment.

I am deeply indebted to Mr. Subhomoy Saha, Regional Sales Manager, ICICI Bank, Ahmedabad, for giving me the opportunity to work with the Bank. What I have learnt during my two months stay with the organization couldn’t have been possible without his guidance.

I would also like to express my gratitude to Mr. Dazzle Bhujwala, Regional Sales Manager, Private Banking & Mr. Parth Chate, Relationship Manager, for their support and encouragement at every juncture.

Finally, I would like to appreciate the invaluable co-operation of all the Bank’s employees.

Pooja Vyas

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EXECUTIVE SUMMARY

The banking sector is an integral part of any advancing economy and in India too its inceptions dates back to more than 100 years. Since its formal inception, banking in India, has evolved in various phases: post independence, post nationalisation and post liberalisation. With the era of Information Technology, emerging in Indian and the deregulation of financial markets post 1991, there has been a marked difference in the way banking is managed in India. Like most core sectors of the economy, banking to has been majorly affected or rather upgraded, through the use if hi-tech gadgets in transactions and processing, the introduction of concepts like telebanking, PC banking, net banking etc much to the advantage of the customer. Moreover, with the arrival of many new and competitive bank it has become very important for the respective banks to attract and retain its customers. In light of these event, the summer assignment taken up dealt with two objectives. One being, the objective of gauging the customer knowledge and awareness about the banking products & services being offered and simultaneously educating him in areas in which the customer lacked knowledge about them. The second objective of the study was to enhance the customer position in the bank by introducing a whole new concept of Private Banking to the esteem clients of the bank, which promised to provide exclusivity and convenience to the former. Hence, the study was tried out to identify and map the customers who could be a part of the Privileged Club or Private Banking.

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TABLE OF CONTENTS

Acknowledgements 2Executive Summary 3Introduction 5

Forces for change 5 Privatization of state banks 6 Domestic mergers 7 Issues in banks: - Mergers with non-banks 8 Mechanism for preserving competition 8 Role of banks and development finance institutions (DFIs) 9 Behavior of foreign banks 9 Competition from foreign banks 9 Systemic stability 10 Conclusion 10

About ICICI Bank 11 Introduction 11 Board of Directors 12

Objective 13Private Banking 13

Asset Products 13 Home Loans 13 Personal Loans 13 Car loans 13 Fixed Deposits 13 Multicity Cheque Book facility 13 Debit Cards & Credit Cards 14 DEMAT 14 WEB TRADE 14 Exclusive Phone Banking 15 ICICI Bank Pure Gold 15 Bureau de Change 15 Internet Banking & Mobile Banking 15 ICICI Bank Pure Gold 15 Comprehensive range of products and services 15 Exclusivity and Convenience 16

Opt 4 More – Investment Guide 18 Investment Products 19

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Fixed Deposit 21Easy Fixed Deposit Benefits 21Roaming Current Account 22Recurring Deposit 24Analysis 25Recommendations 33Questionnaire 34Bibliography 37

INTRODUCTION

The banking sector reforms undertaken in India from 1992 onwards were basically aimed at ensuring the safety and soundness of financial institutions and at the same time at making the banking system strong, efficient, functionally diverse and competitive. The reforms included measures for arresting thedecline in productivity, efficiency and profitability of the banking sector. Furthermore, it was recognized that the Indian banking system should be in tune with international standards of capital adequacy, prudential regulations, and accounting and disclosure standards. Financial soundness and consistent supervisory practices, as evident in our level of compliance with the Basel Committee’s Core Principles for Effective Banking Supervision, have made our banking system resilient to global shocks.

Forces for changeIndia has not faced any major economic/financial crises, though in 1990-91, there was some pressure on the external sector with the current account deficit and external debt servicing reaching large proportions. However, due to prudent macroeconomic policies, it was possible to return the country to a sustainable growth path. As well as the long history of regulation and supervision, Indian banks have limited exposure to sensitive sectors such as real estate, equity, etc, strict control over off-balance sheet activities, larger holdings of government bonds (which helps limit credit risk), relatively well-diversified credit portfolios, statutory restrictions on connected lending, adequate control over currency and maturity mismatches, etc, which has insulated them from the adverse impact of financial crisis and contagion. Banks in India have played a significant role in the development of the Indian economy. However, with the structural reforms initiated in the real economy from the early 1990s, it was imperative that a vibrant and competitive financial system should be put in place to sustain the ongoing process of reforms in the real sector.

The financial sector reforms have provided the necessary platform for the banking sector to operate on the basis of operational flexibility and functional autonomy, thereby enhancing efficiency, productivity and profitability. The reforms also brought about structural changes in the financial sector andsucceeded in easing external constraints on its operation, introducing transparency in reporting procedures, restructuring and recapitalising banks and enhancing the competitive element in the market through the entry of new banks.

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The ongoing revolution in information and communication technology has, however, largely bypassed the Indian banking system given the low initial level of automation. The competitive environment created by financial sector reforms has nonetheless compelled the banks to gradually adopt modern technology, albeit to a limited extent, to maintain their market share. Banks continue to be the major financial intermediaries with a share of 64% of totalFinancial assets. However, non-bank financial companies and development finance institutions are also emerging as alternative sources of funding.In India, foreign banks account for only around 8% of the total assets of the banking system. Further, domestic households are not allowed to place deposits abroad. Similarly, conditions for accessing overseas capital markets by domestic corporate have been stringent, in terms of size, maturity, pricing, etc. The impact of the entry of foreign banks on domestic banks is likely to depend on various factors such as the structure, strength and competitiveness of domestic banks, the share of foreign banks, and the regulatory/supervisory framework. While the entry of foreign banks could definitely improve the competitive environment, they are not likely to weaken domestic banks. With betterTechnology and expertise in offering specialized banking products such as derivatives, advisory services, trade finance, etc, the entry of foreign banks can enhance healthy competition and has a positive spillover effect on the domestic banks. The domestic banks would be under peer pressure toImprove operational efficiency. It needs, however, to be recognized that the banking system in India is quite competitive with the presence of public, private and foreign banks.

Thus, the major forces for change in the Indian context have been the following:_ Consistent and strong regulatory and supervisory framework;_ Structural reforms in the real and financial sectors;_ Commitment to adopt and refine regulatory and supervisory standards on a par with international best practices; and_ Competition from foreign banks and new generation private sector banks.

Privatization of state banksState banks in India have, over the years, played a very significant role in the development of the economy and in achieving the objectives of the nationalization undertaken in 1969 and 1980, namely to reach the masses and cater to the credit needs of all segments, including weaker sections, of theEconomy. The period 1969-90 witnessed rapid branch expansion and an adequate flow of credit to all sectors, including the neglected sectors of the country. From 1990, however, it was recognized that steps were needed to improve the financial health of banks to make them visible, efficient andCompetitive to serve the emerging needs and enhance the efficiency of the real sector. While the role of the large state banks has not undergone any structural changes and they continue to serve the varying needs of the economy, what has changed significantly, as a result of the reform process, is the focus on their consolidation, efficiency, resilience, productivity, asset quality and profitability

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through liberalization, deregulation and adoption of prudential standards in line with international best practices. As a part of financial sector reforms and with a view to giving the state banks operational flexibility andfunctional autonomy, partial privatization has been authorized as a first step, enabling them to dilute the stake of the Indian government to 51%. The government further proposed, in the Union Budget for the financial year 2000-01, to reduce it’s holding in nationalized banks to a minimum of 33% on a caseby case basis. The major problems for gradual privatisation are likely to be resistance from staff to rationalization of the branch network and emphasis on higher staff productivity. The optimal size of a bank depends on several factors and differs between countries depending on the level of economic development, the number and diversity of financial institutions/instruments, theCompetitive situation in the market, etc. Looking at the typical Indian situation, the big banks operating in international markets have to coexist with banks operating only at the national level, regional rural banks and cooperative banks, which will induce the necessary competition in the market. Most of the state banks have a strong national presence and are catering to the needs of various segments of the economy. We do not expect to split the state banks into smaller entities even after the gradual disinvestments of government equity in them. Rather, there is a possibility of consolidation for synergising business/regional strengths, and efforts in this area may be. Board-driven. With the functional autonomy that will emerge as a result of such disinvestments.

Domestic mergersUnder the Banking Regulation Act, banking companies cannot merge without the approval of the Reserve Bank of India. The government and the Reserve Bank do not play a proactive role in either encouraging or discouraging mergers. It is our endeavor that the government and the RBI should only provide the enabling environment through an appropriate fiscal, regulatory and supervisoryFramework for the consolidation and convergence of financial institutions, at the same time ensuring that a few large institutions do not create an oligopolistic structure in the market. Mergers should be based on the need to attain a meaningful balance sheet size and market share in the face of heightened competition and driven by synergies and vocational and business-specificComplementarities.

While there is no regulatory deterrence to bank mergers, their incidence has not been significant and hence no problems have occurred in India. Mergers of banks help to reduce the gestation period for launching/promoting new places of business, strengthen product portfolios, minimize duplication, gain competitive advantage, etc. They are also recognized as a good strategy for enhancing efficiency. Ideally, mergers ought to be aimed at exploiting synergies, reducing overlap in operations, right-sizing. And redeploying surplus staff eitherBy retraining, alternate employment or voluntary retirement, etc. As banks are leveraged and the credibility of the top management has tremendous supervisory

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implications, we prefer consensual mergers to hostile takeovers. The takeover codes should, therefore, reflect the supervisory concerns.

Issues in banks: - Mergers with non-banksIt has been our endeavor to preserve the integrity and identity of banks. The activities that the banks and their subsidiaries can undertake are restrictive, to ensure that the interests of existing and future depositors are fully protected. Banks are also not allowed to undertake trading in commodities. In pursuit of these objectives, the merger of a bank with a non-bank is generally not favored. However, the merger of a non-bank financial company with a bank is allowed subject to the prior approval of the Reserve Bank of India and compliance with all the regulatory and supervisory standards applicable to banks. The issues that may arise in such mergers would be the bank’s ability to comply with statutoryAnd regulatory requirements in respect of liabilities and assets taken over by it from the non-bank.

Mechanism for preserving competitionThere is no separate agency/mechanism for preserving competition in the banking sector. Promoting competition is, however, one of the key objectives of financial sector reforms. The entry of new private sector and foreign banks and introduction of new products and technology and operational freedom toBanks have ensured a competitive environment in the financial market.

Impact of consolidationSince the consolidation process has not gone very far in India, its impact has not been significant. Mergers of certain foreign banks at the global level have also not affected the Indian market, as their market share is currently very low. However, the deregulation process has brought in more competition in the banking sector, resulting in delivery of innovative financial products at competitive rates. The consolidation of banks may not significantly affect the functioning of various segments of the financial markets. In a liberalized environment, the mere size of the bank may not be an enabling condition for distorting the pricing mechanisms or liquidity in the market. The presence of large banks would result in more competition and narrowing spreads.

Role of banks and development finance institutions (DFIs)India being a geographically vast country with its rural population constituting almost 70% of the total, the role of regional rural banks remains important. The banking sector, characterized by the presence of internationally active banks, national-level banks and regional rural banks, is likely to be preserved

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To cater to the needs of a varied customer base. Consequent to liberalization and financial sector reforms, there has been some blurring of distinction between the activities of banks and DFIs. In particular, the traditional distinction between commercial banking and investment banking has tended to narrow somewhat. Banks have been moving into certain areas, which were the exclusive domain of the DFIs, eg project finance and investment banking. DFIs have recently been given the option to convert themselves into universal banks with the RBI.s approval. To this end, a DFI would need toPrepare a transition path in order to comply fully with the statutory and regulatory requirements applicable to banks. The RBI will consider such requests on a case-by-case basis.

Entry of foreign banksDomestic banks account for 92% of total banking assets in India. Given the size of the country and the policy to ensure that foreign banks. market share does not exceed 15%, domestic banks are likely to dominate the banking markets.

Behavior of foreign banksThe presence of foreign banks does not imply negligence of particular sectors of the economy. In India, foreign banks are required to comply with priority sector lending norms, where the commitments are lower than those applicable to domestic banks under a tailor-made structure suitable to them. The experience is that foreign banks adhere to the Reserve Bank prescriptions. Generally, however, due to their limited knowledge of the local industry and branch network, foreign banks are very conscious about their asset quality and a major shift in the share of foreign banks may result in neglect of the credit requirements of small and medium-sized businesses, whose development is crucial for emerging markets, but which are perceived as carrying relatively higher risks. Foreign banks constantly evaluate the political, economic and financial climate in financial markets and vary their investment/lending decisions. While the credit risk management processes and practices vary among banks, all internationally active banks have centralized policies and country and transfer risk monitoring, reporting and limiting mechanisms. While the traditional scope encompassed only sovereign and transfer risk, large flows of loans to non-G10 countries. commercial entities have induced banks to broaden the scope of country and transfer risk management to incorporate the potential default of foreign private sector counter parties arising from country-specific economic factors. In response to the Asian crisis and more recent events, banks in India are required to strengthen their country and transfer risk monitoring and analysis in an effort to identify incipient problems and toadjust exposures more promptly and systematically.

Competition from foreign banksWhile entry of foreign banks is bound to affect the overall competitive situation in the market, much depends on the policy of the sovereign in regard to their entry/expansion, the existing share of domestic banks, etc. One of the main

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thrusts of the banking sector reforms in India has been to introduce more competition in the banking industry. With regard to mergers, only very few foreign banks operating in India have gone through the process of global mergers. The impact of mega mergers taking place at the global level on the competitive position of the Indian banking system has been minor, in view of foreign banks, limited share in the financial system. At the same time, foreign banks have the potential, even without mega mergers, to improve their market share, given their use of sophisticated technology and capability of introducing innovative products.

Systemic stabilityThe existence of only a few large banks potentially exposes the system to undue risk, as even a bank-specific liquidity crisis could trigger systemic problems. Ideally, the banking system should comprise a few large banks to ensure a healthy competitive environment and smaller banks and sector-specific financial institutions to cater to the needs of small business and agriculture. The domestic and foreign banks are covered under a uniform regulatory and supervisory regime. Foreign banks are also covered by the deposit insurance arrangements applicable to domestic banks. As lender of last resort, the Reserve Bank has not faced any problem with foreign banks, as their operations and asset size are very limited. There have been no major difficulties experienced in coordination with the home country supervisors of foreign banks. The open and competitive environment provides opportunities and challenges to the banks. The narrowing spreads force banks to assume more risks. At the same time, banks should ensure an appropriate trade-off between risks and returns. Recognizing the need for effective risk managementsystems, the Reserve Bank has issued comprehensive guidelines on risk management systems and banks are required to address risk management in a structured manner. The implementation of risk management guidelines is also a key supervisory concern. The large size of banks is a systemic issue and the monetary authorities are often compelled to act as lender of last resort to obviate dislocation in the payment and settlement systems. Banks, especiallylarge banks should therefore be adequately capitalized, put in place strong internal control and risk management systems, supported by proper disclosure, and so forth.

ConclusionThe financial sector reforms have brought about significant improvements in the financial strength and the competitiveness of the Indian banking system. The prudential norms, accounting and disclosure standards, risk management practices, etc are keeping pace with global standards, making thebanking system resilient to global shocks. The consolidation and convergence of banks in India has, however, not kept pace with global phenomena. The efforts on the part of the Reserve Bank of India to adopt and refine regulatory andsupervisory standards on a par with international best practices, competition from new players, gradual disinvestments of government equity in state banks

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coupled with functional autonomy, adoption of modern technology, etc are expected to serve as the major forces for change. In the emergingscenario, the supervisors and the banks need to put in place sound risk management practices to ensure systemic stability.

ABOUT ICICI BANK

Introduction

ICICI Bank is India's second-largest bank with total assets of about Rs.125,229 crore and a network of over 450 branches and offices and about 1790 ATMs. ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialised subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital and asset management. ICICI Bank's equity shares are listed in India on stock exchanges at Kolkata and Vadodara, the Stock Exchange, Mumbai and the National Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE).

ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution, and was its wholly owned subsidiary. ICICI's shareholding in ICICI Bank was reduced to 46% through a public offering of shares in India in fiscal 1998, an equity offering in the form of ADRs listed on the NYSE in fiscal 2000, ICICI Bank's acquisition of Bank of Madura Limited in an all-stock amalgamation in fiscal 2001, and secondary market sales by ICICI to institutional investors in fiscal 2001 and fiscal 2002. ICICI was formed in 1955 at the initiative of the World Bank, the Government of India and representatives of Indian industry. The principal objective was to create a development financial institution for providing medium-term and long-term project financing to Indian businesses. In the 1990s, ICICI transformed its business from a development financial institution offering only project finance to a diversified financial 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.

After consideration of various corporate structuring alternatives in the context of the emerging competitive scenario in the Indian banking industry, and the move towards universal banking, the managements of ICICI and ICICI Bank formed the view that the merger of ICICI with ICICI Bank would be the optimal strategic

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alternative for both entities, and would create the optimal legal structure for the ICICI group's universal banking strategy. The merger would enhance value for ICICI shareholders through the merged entity's access to low-cost deposits, greater opportunities for earning fee-based income and the ability to participate in the payments system and provide transaction-banking services. The merger would enhance value for ICICI Bank shareholders through a large capital base and scale of operations, seamless access to ICICI's strong corporate relationships built up over five decades, entry into new business segments, higher market share in various business segments, particularly fee-based services, and access to the vast talent pool of ICICI and its subsidiaries. In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger of ICICI and two of its wholly owned retail finance subsidiaries, ICICI Personal Financial Services Limited and ICICI Capital Services Limited, with ICICI Bank. The merger was approved by shareholders of ICICI and ICICI Bank in January 2002, by the High Court of Gujarat at Ahmedabad in March 2002, and by the High Court of Judicature at Mumbai and the Reserve Bank of India in April 2002. Consequent to the merger, the ICICI group's financing and banking operations, both wholesale and retail, have been integrated in a single entity.

ICICI Bank Limited is a diversified financial services group offering a wide range of products and services to corporate and retail customers in India through a number of business operations, subsidiaries and affiliates. During the fiscal year ended March 31, 2003, the Company offered products and services in the area of commercial banking, both domestic and international, investment banking and other products, such as insurance. The Company operates both in India and internationally, with a subsidiary in the United Kingdom, a branch location in Singapore and a representative office in New York. The Company plans to expand into Canada, the United Arab Emirates and China. Customers are offered a choice of delivery channels, including physical branches, automated teller machines (ATMs), telephone banking call centers and Internet banking.

Board Members

Mr. N. Vaghul, Chairman Mr. Uday M. Chitale Mr. P.C. Ghosh Dr. Satish C. Jha Mr. S.B. Mathur Mr. L. N. Mittal Mr. Anupam Puri Mr. Vinod Rai Mr. Somesh R. Sathe Mr. P.M. Sinha Mr. M.K. Sharma Prof. Marti G. Subrahmanyam

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Mr. V. Prem Watsa Mr. K.V. Kamath, Managing Director & Chief Executive Officer Ms. Lalita D. Gupte, Joint Managing Director Ms. Kalpana Morparia, Deputy Managing Director Ms. Chanda Kochhar, Executive Director Dr. Nachiket Mor, Executive Director

OBJECTIVE

My summer training was divided into two phases. In the first phase I was asked to undertake my project in ICICI Bank, Gandhinagar for one month and in the second phase I worked with ICICI Bank, Ahmedabad.

The project began with a brief training or orientation to all the ICICI Bank’s products & services, which helped me gain knowledge about the various banking products and acquainted me to the world of banking. The areas in which I was given training are briefly explained below: -

PRIVATE BANKING

Asset Products

Enjoy attractive interest rates and the convenience of doorstep service from enquiry to disbursement. The facility to transfer your existing higher interest rate loan to ICICI Bank is also available.

Home LoansAdministration Fee 0.50% of loan amount or Rs.7,500 whichever is lower

Personal LoansPersonal Loans are given without any collateral security, guarantor and without reasons for the end use of funds. A balance transfer facility is also available.

Car loansICICI Bank enjoys preferred financier status with 12 leading manufacturers and has special tie- ups with most manufacturer-dealers to ensure the highest quality service to you.

Banking

Fixed Deposits We offer you competitive interest rates with the added comfort of safety and

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liquidity. You can also avail of loans against your Fixed Deposits upto 90% of attractive rates.

Multicity Cheque Book facilityA payable-at- par chequebook is provided to you free of charge making outstation financial transactions a signature away.

At Par Cheque Facility Free

Personalized Pay-in Slip Book Free

Debit Cards & Credit Cards

We provide you a free & personalized photo signature international debit card with enhanced cash withdrawal and point of sales limits.

You can also avail of HPCL-ICICI Bank Gold Credit cards with pre-approved limits and first year fee waiver.

Debit Card

Type of card Personalized Photo Signature cardWithdrawal Limit Rs. 25,000Cumulative POS limit Rs. 25,000

Credit Cards

Type of card HPCL - ICICI Bank gold cardLimit Pre-approved Rs. 1.5+ LakhsAnnual First year fee WaivedSubsequent years fees Waived if annual card spend exceeds

Rs.60000

Depository services

We bring you the best value for money through competitively priced service charges for Online share trading services from ICICIdirect.com with a 3 in 1 account consisting of a Demat, brokerage and an ICICI bank account.

DEMAT

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Buy and Sell rates 0.02% & 0.02% of transaction valueE-instructions Registration Free

Web Trade

Initial Brokerage rate 0.75%

Exclusive Phone Banking

A call from your registered mobile to our Customer Care Centre would directly connect you to the phone banking team. No further authentication would be required for your non-financial transactions. We also provide you with a dedicated toll free number 1-600-22-8181

Phone Banking

Exclusive Private Banking Phone Banking Services

Available, with Mobile Identification

Mobile Banking Free

Further more

ICICI Bank Pure GoldICICI Bank offers 24 Carat 99.99% internationally certified pure Gold Coins in denominations of 5 gms and 10 gms.

Bureau de ChangeWe offer American Express & Thomas Cook Travelers cheques at preferential exchange rates to our Private Banking clients.

Internet Banking & Mobile BankingICICI bank Internet Banking service is a convenient remote banking facility that uses sophisticated multi-layered security architecture with digital certification to prevent unauthorized access. Mobile banking keeps you informed through regular mobile alerts.

Comprehensive range of products and services

Savings Account, Fixed Deposits, Recurring Deposits, Quantum Optima, Current Accounts,

Resident Foreign Currency (Domestic) Accounts etc.

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Asset Products- Home Loans, Car & Personal Loans, Loan Against Securities etc.

Investments - Government of India Bonds, Mutual Funds, Capital Gain Bond etc.

Insurance Web Trade and Demat Accounts Gold Coins & Bureau de Change International Debit and Credit cards And many more....

Exclusivity and Convenience

Dedicated Officer Separate interaction area in the branch Anywhere Banking facility Exclusive Phone Banking service

Competitive Pricing

Reduced rates for products and services Several Complimentary Offers Value-linked benefits

Eligibility

PRODUCT SELECT PREMIUM WEALTH ADVISORY

Banking Products

Eligibility Criteria Rs. 5 Lacs Individual Banking Relationship

Rs. 25 Lacs Individual Banking Relationship

Rs. 50 Lacs Family AUA Relationship

Minimum Balance Requirement

Zero Balance Zero Balance Zero Balance

Private Banking Kit

At par facility Available Available Available

Personalised Pay-in Slips

Available Available Available

Banking Service

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Charges

Mobile banking Free Free Free

Debit Cards Free Photo Signature Card

Free Photo Signature Card

Free Photo Signature Card

Transaction Limits Currently Rs.25,000 (to be increased) for both cash withdrawal and POS

Currently Rs.25,000 (to be increased) for both cash withdrawal and POS

Currently Rs.25,000 (to be increased) for both cash withdrawal and POS

Card Re-issue charges

Rs.200 per Issue Free of Charge Free of Charge

Dedicated Resources

Relationship Manager

Wealth Advisor

Service Officer at Branches

Service Officer at Branches

Service Officer at Regional Office / Branches

Call Centre Facility Exclusive Private Banking Call Centre

Exclusive Private Banking Call Centre

Exclusive Private Banking Call Centre

Mobile identification Mobile identification Mobile identification

Priority Queue Priority Queue Priority Queue

Housing Loans Competitive Rates Competitive Rates Competitive Rates

Fee @ 0.50% or Rs. 7,500 whichever is less

Fee @ 0.50% or Rs. 7,500 whichever is less

Fee @ 0.25% or Rs.5,000 whichever is less

Credit CardsRoll Over Balance Roll Over @ 2.75% Roll Over @ 2.75% Roll Over @ 2.00%

Card Fees Free for 1st Year. Card Fee waived for Subsequent Years if Card Annual Spend more than Rs 60,000

Free for 1st Year. Card Fee waived for Subsequent Years if Card Annual Spend more than Rs 60,000

Free

Type of Card and HPCL ICICI Bank HPCL ICICI Bank ICICI Bank Solid Gold

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Limit Solid Gold Card with Pre Approved Limit of Rs. 1.5 Lacs

Solid Gold Card with Pre Approved Limit of Rs. 3.00 lacs

Card with Pre - Approved limit of Rs. 3.00 lacs

Limit enhancement based on documentation

Limit can be enhanced to Rs 2.5 lacs

Limit can be enhanced to Rs 5 lacs

Limit can be enhanced to Rs 10 Lacs

Demat and Web TradeDemat Annual Fee Rs. 300 No annual fee No annual fee

Buy Charges 0.02% Nil NilSell Charges 0.02% Nil Nil

E Instructions Free Registration Free Registration Free Registration

Web Trade Account Opening Charges : Rs. 750

No Account Opening Charges

No Account Opening Charges

Set off of A/c Opening charges against Brokerage

N A N A

Maximum Transaction Charge (reduced based on transaction volumes)

0.75% 0.50% 0.50%

RSA Tokens Charged Free (Discretion of RM/BM)

Free (Discretion of RM/BM)

Bureau D'ExchangeExchange Rate Preferential Rates Preferential Rates Preferential Rates

Commission 50% discount on commissions

50% discount on commissions

50% discount on commissions

Services Home delivery and pick-up

Home delivery and pick-up

Home delivery and pick-up

Opt 4 For – Investment Guide

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Opt 4 More represents a disciplined approach to investing through four more options of Government of India Savings Bonds and Mutual Fund Schemes.

GOI BondsShort Term PlansIncome Plans Equity Plans

Each of these options has different risk return characteristics and based on the individual risk profile, the investor should optimize risk and return expectations by investing in the appropriate mix of available investment options across asset classes.

Sacred Assets: - Bank Fixed Deposits and Government of India Savings Bonds (Very low risk on Capital and no risk on Income)

Serious Assets: - Income and Short Term Plans (Low risk on capital and medium risk on income)

Aggressive Assets: - Equity and related Plans (High risk on Capital and Income)

The first step in determining one’s investment profile would be to gauge the kind of investor one would be i.e.

Conservative: - The Conservative profile is recommended for rsik-averse investors whose primary objective is capital preservation. While fixed deposits and GOI Savings Bonds form a significant part of the portfolio, yield enhancement is aimed through investments in short term and long term income plans. This investment pattern considerable reduces the risj to capital along with the opportunity to enhance overall returns. The recommended holding period for this profile is more than 1 year.

Moderate: - The moderate profile is recommended for investors who have the ability to take a much higher risk on 20% of their capital by investing in Equity Mutual Funds. This allocation to equity funds is recommended with the objective to participate in the Indian capital markets with the expectation of enhancing returns through capital growth over the long term. This could provide a hedge against inflation over a three to five year holding period helping investors to accumulate wealth. This profile would be subject to intermittent price volatility and moderate risk to capital and is recommended for holding periods of over 3 years

Aggressive: - The Aggressive profile is recommended for investors expecting above average capital growth for over a five-year period. This profile would be

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subject to frequent price volatility and high rish to capital and is recommended for holding periods of over 5 years.

Investment Products: -

Why Bank Fixed Deposits?

A Bank fixed deposit has minimal risk of capital erosion and provides guaranteed returns throughout the tenor of the deposit. This significantly reduces the overall risk of the portfolio and at the same time increases its liquidity. In the event when interest rates continue to decline, a fixed deposit continues to earn the same rate of return.

Why GOI Savings Bonds?

Non-tradable GOI 6.5% Savings Bonds 2003 have a lock in period of 5 years. The Interest income is tax free in the hands of the investors. In a volatile debt market scenario, it makes sense to invest in such bonds so that overall portfolio interest rate risk is minimized. When considered along with equity investments, it enhances the risk adjusted return of the portfolio, by bring in stability to the return generating process.

Why Short term income plans?

Short-term income plan predominantly invest in lower maturity corporate papers generating returns marginally higher than fixed deposits. These plans are a step up from bank fixed deposits in terms of risk. The interest rate risk of these plans is much lower than that of long maturity income plans. Short-term plan is therefore recommended to be a small part of the portfolio to bring down the overall maturity and serve as a hedging mechanism reducing the interest rate related risk to the portfolio.

Why Income plans?

Income plans invest in a basket of relatively longer maturity fixed income instruments and endeavor to provide higher market risk and are more sensitive to interest rate fluctuations. Investing in income plans is recommended for a 1 year and above horizon to ensure that any intermediate and adverse interest rate movements get evened out.

Why Equity plans?

Equity plans inherently carry a much higher risk to capital and tend to mirror the equity market volatility. These plans endeavor to generate above average returns over the long term. These plans are recommended to act as a hedge against inflation and provide the investors the opportunity to participate in the Indian

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Equity markets without having to develop their own expertise of choosing individual stocks. These plans also help the relatively smaller investors to enjoy the benefits of diversification. However, the investments in equity plans have to be made with over 5 years perspective.

FIXED DEPOSITS

Fixed Deposit allows you just that - deposits can be opened for periods ranging from 15 days to 10 years.

Other features include:

Choice of two investment plans:

Traditional

Interest payable monthly, quarterly or half-yearly as per your convenience Maturity period ranges from 15 days to 10 years.

Reinvestment

Interest is compounded quarterly and reinvested with principal amount Maturity period ranges from 6 months to 10 years

Minimum Balance

Deposits for a minimum deposit of Rs 10,000 and thereafter in multiples of just Rs 1,000. You can avail of ICICI Bank Fixed.

Nomination

Nomination facility is available for relationships in the names of individuals. Unless otherwise specifically, given in writing by depositors, nomination in deposit accounts will be at Customer ID level.

Depositor(s), however has/have the right to specify different nominations at account level by completing appropriate forms.

Further, the applicant(s) is/are at liberty to change the nominee, through declaration in the appropriate form to revise the nomination during the currency of the relationship accounts with the Bank.

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EASY FIXED DEPOSIT

Easy Fixed Deposit is an ICICI Bank fixed deposit scheme having benefits of Debit -cum- ATM card (''the Card'')

The depositors shall be provided with a Debit Card for transacting in fixed deposit. Transactions, which are allowed are

Part withdrawal of fixed deposit Full withdrawal of fixed deposit Generation of mini statement

The Card will be issued in the name of primary depositor. No separate card will be issued to joint applicant/s

Easy Fixed Deposit has two options namely Easy WithdrawalEasy Loan A customer has to opt for one of these at the time of opening the account

Tenure of deposits varies between 1 year and 10 years All deposits under this Deposit Scheme will be cumulative (reinvestment)

in nature Minimum deposit amount under the Deposit Scheme is Rs.45,000 and

additionally deposits can be made in multiples of Rs.5,000 Nomination details are as in the case of normal Fixed Deposits

Easy withdrawal

Under this option fixed deposit shall be linked to the debit card directly The debit card can be used to withdraw money from the ATM, by breaking

the FD, as and when required or depositor can use the debit card to shop. If the deposits are prematurely withdrawn, the interest rate for the period

for which deposit was with the ICICI Bank prevailing on date of deposit made, shall be payable

Easy Loan

The depositors shall be provided with an overdraft facility against the Easy FD and can draw up to 75% of the Easy FD value

The interest rate on the overdraft will be 2% higher than the rate on the FD

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The depositor shall be required to execute all loan facility documentation as specified by ICICI Bank for these purposes

Chequebook will also be issued to deposit holder

ROAMING CURRENT ACCOUNT

The Roaming Current Account from ICICI Bank travels the distance with its client’s businesses. With advanced technological feature such as Multicity Cheque Book and Local Cheque Location, the banking needs of its clients are well taken care of. The Current Account facility can be accessed over 250-networked branches across the country.

Features: -

Choose Your Account:- ICICI Bank offers one a suite of current account products that meet all your banking requirements. One can choose a current account that fits one’s budget for Quarterly Average Balance.

Account Type QAB (Rs. ‘000)Standard 10Classic 25Premium 50Gold 100Platinum 500

Multi City Cheque Facility

With this facility, all cheques issued by one will be payable at par at various ICICI Bank branches across the country. This unique facility, which gives one the power to issue cheques that are treated as local cheques at over 100 centres across India.

Anywhere Banking Facility

With an unparalleled set of networked branches across India, ICICI Bank offers one, ‘Anywhere Banking’ in the truest sense of the term. Hence, the Roaming Current Account in one center can be operated from any other designated branch across any other center. So a cheque deposited in your account in any other center will be credited to your account much faster. Likewise one can deposit or withdraw cash from designated ICICI Bank branches up to a prescribed limit. One can also transfer funds across accounts in ICICI Bank.

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Pay Orders And Demand Drafts

With the ICICI Bank Roaming Current Account you can draw Pay Orders in more than 125 centres and draw DDs in more than 500 centres.

Besides these unique feature, this product also offers other facilities like Phone Banking, Internet Banking, Mobile Banking, free Burglary/Personal/Accident Insurance by registering on Corporate Internet Banking, Debit/ATM Card – a facility available for sole proprietorships and partnership concerns.

RECURRING DEPOSITS

Recurring Deposit helps in saving a small amount every month and get back a big sum at the end of the tenure. The benefits that this product offers are as follows: -

Recurring Deposit helps in beating the falling interest rate trend. Locks in money today and enjoy a high interest rate for the tenure of your deposits. It provides power of compounding which helps one to earn interest on interest. Also, under this facility no tax will be deducted on interest earned on one’s deposits.

Hence, Recurring Deposits provides Flexibility, in terms of choosing the duration and the size of monthly investments, Liquidity, in terms of pre-mature withdrawals whenever in need of funds during the life of Recurring Deposit.

INTERNET AND MOBILE BANKING

The Internet Banking facility provides the following benefits: -

See Account status online Do transaction online Schedule bill payments Transfer money to non ICICI Bank Link all your services with one code

The Mobile Banking facility provides the following benefits: -

Get regular alerts for your bank transactions Keep yourself updated in bank transactions and balance even on the move Payments for bills Cheque Book request

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After the brief orientation to the banking services, the next step was to formulate the questionnaire for the survey. The main objective of the exercise to be undertaken was to know whether our clients had adequate knowledge about the products offered by ICICI Bank. The questionnaire was made in such a way that it highlighted all the features and benefits of all the key products.

The main idea behind formulating such a questionnaire was that the clients who weren’t aware of any of our product would gain some knowledge about it. It was made to attract the clients towards services they weren’t availing.

The third & the most important objective or purpose that the questionnaire sought to achieve was that it was meant to introduce Private Banking (also known as Privileged Club). The questionnaire highlighted the features and the benefits provided by this exclusive club.

The main purpose behind this exercise was to identify the potential HNIs and then enroll them into Private Banking. As mentioned above the Private Banking dealt with clients having 5 lacs and above FD + Savings.

This exercise began with first identifying the top 10 relationships of ICICI Bank. The identification was done on the basis of total number of Cust ids a particular relationship had with the bank and the average year-end value. After the identification of the top 10 relationships, the mapping of the hierarchy of these relationships was done. Hence, the top 5 personnels of each of the relationship were mapped. After mapping them, the filling up of questionnaires began. The findings and analysis of which are given below: -

ANALYSIS: -

Findings

The first question asked to the clients, was regarding the benefits that they enjoyed while banking with ICICI Bank. The main purpose behind this was to identify the facilities provided by the bank that the clients enjoyed the most. The options given to the clients were as follows: -

12 Hours: 8 to 8 BankingWide network of ATM’s & other Bank ATM tie-upsAuto Invest Equipped Salary A/C with Insurance facilitiesBasket of products and Facilities under one roof

Out of these options available to the clients and as per the analysis of the questionnaires done in the second phase of the exercise it was found that

62 % clients enjoyed the 12 hour banking facility provided by the bank36% clients enjoyed the Wide network of ATM’s & other Bank ATM tie ups

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2% clients preferred the basket of products and facilities under one roof

iBank Benefits

62%

36%

2%

12 Hours : 8to 8 Banking

Widenetwork ofATM’s

Basket ofproducts andFacilities

Reasons: - The above-mentioned analysis suggests that majority of the clients enjoyed the 12 hour banking facility provided by the bank the most. The main reason behind this finding is that most of the clients surveyed were government servants who preferred this facility precisely because of their office timings, which were from 10am to 6pm. Hence, there was always an opportunity for them to visit the branch either in the morning i.e. before office or in the evening. 62% of the respondents found this facility to be most satisfactory and convenient. Also, 36% of the respondents appreciated the availability of ATMs at strategic locations in gandhinagar, which made the access to them most expedient for the respondents.

Thus, from the above result one may concur that ICICI Bank has greatly benefited from providing this service as it has helped in attracting and retaining its customers, majority of them being government employees. Findings

The second question dealt with the services provided by the bank that, clients used the most during their various transactions. This question highlighted the services that the clients were most comfortable in using. The options given to them were: -

ATMsPhone BankingInternet BankingMobile BankingThe analysis in the second phase of the study showed that in gandhinagar, the clients most frequently used ATMs for all their transactions. It was found that

80% of the clients used only ATMs16% of clients used both ATMs and Phone Banking

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4% of the clients used both ATMs and Internet Banking

iBank Services

80%

16% 4% ATMs

ATMs & PhoneBanking

ATMs & InternetBanking

Reasons: -We can concur from the above analysis that from 50 clients surveyed, all of them used ATMs most frequently for their transactions with an exception of 16% and 4% using phone banking and internet banking also. However, the reasons behind these findings is that the clientele in gandhinagar is not well acquainted with the concept of Internet Banking and Mobile Banking, precisely because of the low knowledge about Internet usage. The clients surveyed fell in the age group of 45-55, hence the tendency to stick to traditional way of banking was evident and was correctly the reason behind the low usage of Internet Banking and Mobile Banking.

Findings

Salary Account Benefits

The second part of the questionnaire dealt with gauging the knowledge of the respondents regarding the products offered by the bank. Since all the respondents had a salary account with ICICI Bank, the first question was directed towards knowing what benefits of salary account the clients enjoyed the most. As per the analysis it was found that: -

42% of the clients solely enjoyed the benefit of Zero Balance A/C with free personalized Cheque Book

26% of the clients enjoyed the benefit of Joint Holder facility with free Debit Card

32% enjoyed the benefit of Debit Card with Rs. 25000 per day withdrawal limit

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Salary A/C Benefits

42%

26%

32%0 Balance A/C

Joint Holder Facility

Rs. 25000Withdrawal limit

Reasons: -

From the above analysis it is evident that majority of the respondent enjoy the benefit of 0 Balance A/C with free personalized Cheque Book because of having no compulsion of maintaining a certain amount of money in the bank and not being charged for not maintaining the account. However, close to this finding, 32% also preferred 25000 Rs. Withdrawal limit on the debit card, precisely because whenever in need of money one could easy rush to the nearest ATM then to the branch which might become a tedious affair.

Findings

Easy Fixed Deposit Benefits: -

As per the analysis of this question, it was found that

26% of the respondents weren’t aware of the product

32% of the respondents enjoyed accessing their FD from the ATMs

14% of the respondent enjoyed encashing their FD from anywhere in the country

16% of the respondents enjoyed the No penalty benefit provided by this product on breaking their FD

12% of the respondent appreciated the benefit of getting a loan against their FD

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Easy FD Benefits

26%

32%14%

16%

12%

Not Aware

Access FD fromATMs

Encash FD fromanywhere

No Penalty onwithdrawal

loan against theirFD

Reasons: -The majority of the respondents under this question preferred accessing their FDs from the ATMs because of the following reasons, accessing FD from the ATM saved time, was easily attainable and it avoided making frequent branch visits.

Findings

Recurring Deposit Benefits

As per the analysis of this question, it was found that: -

20% of the respondent weren’t aware of the product

44% of the respondent enjoyed the No TDS benefit provided by this product

24% of the respondent enjoyed the Power of Compounding provided by this product

2% of the respondent enjoyed the benefit of both No TDS & Earning FD rate with Easy Installments

8% of the respondent enjoyed the benefit of Earning FD rate with Easy Installments

2% of the respondent enjoyed the benefit of Auto set up from Salary A/C

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Recurring Deposit Benefits

20%

44%

24%

8% 2%2%

Not Aware

No TDS

Power ofCompounding

Earning FD ratewith EasyInstallments

Auto set up fromSalary A/C

Reasons: -The No TDS benefit was the most favored option opted by 44% of the respondents, the apparent reason being that Recurring deposits are not tax deductible and hence, it maintains liquidity by the way of compounding which 24% of the respondent preferred to be ideal.

Findings

Retiral Benefits

As per the analysis of this question, it was found that: -

18% of the respondent weren’t aware of the product34% of the respondent enjoyed the benefit of Investment Advice from the expert32% of the respondent enjoyed the benefit of 0 Balance A/C12% of the respondent enjoyed the benefit of both 0 Balance A/C & Multicity Cheque Book4% of the respondent enjoyed the benefit of only Multicity Cheque Book

Retiral Benefits

18%

34%32%

12% 4%

Not Aware

Investment Advicefrom the expert

0 Balance A/C

0 Balance A/C &Multicity ChequeBookMulticity ChequeBook

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Reasons: -The reasons behind the respondents preferring Retiral A/C’s Investment Advice from the expert benefit was that this product is meant to target clients nearing their retirement and who are looking for some safe investment of their money. Hence, this point was highlighted in the analysis with 34% of the clients opting for this benefit. Close to this finding was the 0 Balance A/C facility which left no compulsion on the clients to maintain a certain limit in the account and no charge being levied for the former.

Findings

Internet Banking

As per the analysis of this question it was found that: -

4% of the respondent were fully aware and use this facility96% weren’t aware of the facility

Internet Banking

96%

4%

Unaware

Aware

Mobile Banking

2% used Mobile Banking98% weren’t aware of the facility

Mobile Banking

98%

2%

Unaware

Aware

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Reasons: -The major challenge that lies before the bank in gandhinagar is to facilitate the usage of Internet & Mobile Banking. They need to educate the customers in terms of highlighting the benefits provided by these to services and helping the latter to remove the mental block that hinders them to exploit the benefits offered by the bank through Internet and Mobile Banking. This is precisely the reason why 96% and 98% of the clients are not aware of Internet and Mobile Banking respectively.

Privileged Club

The third part of the questionnaire was directed towards updating the clients about the Privileged/Private Banking features and benefits, in order to make them aware about this new facility and attract them to be a part of this club which reflected ‘Exclusivity and Convenience’ in terms of products & services provided by this club.

However, it was found that out of 50 clients targeted under this survey it was found that about: -

22% of the clients didn’t want to be a part of Private Banking4% of the clients weren’t sure about being a part of Private Banking74% of the clients wanted to be a part of Private Banking

Privileged Club

74%

22%4%

Yes

No

Cant Say

Reasons: -

The main objective of this whole exercise was not only to get an idea about the knowledge our clients have about our products and services and educate them in case of ignorance regarding any services but also to introduce private banking to our potential HNI clients in order to identify them and upgrade them into the ‘Privileged Club’ so that they could enjoy all the benefits offered by this exclusive club. And as the analysis depicts 74% of the clients were interested in joining the Private Banking. Hence, to an extent we were successful in attaining the

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objective we had set forth on. And to credit our team working on this project out of 74%, we have been successful in enrolling 50% of the clients into PBG.

Recommendations

The analysis of the questionnaire reveals the areas in which ICICI Bank needs to concentrate in order to make its customers enjoy the benefits that its products and services provide. The areas, which need attention, are: -

Firstly, it was evident that from the findings that all the 50 clients weren’t fully aware about the products and services offered by the bank. Hence, here the main task of the Bank then becomes to educate the clients about all the products & services. This exercise could be done through providing timing information about the different offerings being provided by the Bank to them through the sales executives.

It was also apparent from the findings that most of the clients preferred using ATMs for their transactions, which gave a back seat to services like Phone Banking, Mobile Banking & Internet Banking. In order, to increase the usage of these services, the bank needs to concentrate on educating & encouraging the clients to avail the benefits provided by these services. These could be done through aggressive marketing by highlighting the features of these services and what difference it would make to the clients banking with ICICI.

Moreover, it was noticed that all the 50 clients were totally unaware about the products like Gold Coins, Forex, and WTA & Insurance. Under such circumstances, the bank should make sure that its existing clients are made aware of all its banking facilities. This could be done either through direct advice from the experts or by using various marketing tools like distributing pamphlets, sales presentations & camps, brochures etc.

The second phase of the training was taken up in ICICI Bank, Ahmedabad. The training here dealt with again identifying the top 50 relationships of ICICI Bank, JMC Branch which was done through the Cust ids that highlighted the number of accounts that a particular relationship had with the bank. After the identification was done, the hierarchy of the relationship was mapped. Hence, in total 150 personnels were identified which would fall in the criteria of Private Banking. After the ground level findings, the next step was to approach these clients and make them aware about the facilities provided by Private Banking. This exercise is however still in process.

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On a whole, it was an enriching experience working with ICICI Bank. I thoroughly enjoyed and learnt a lot from this training. It acquainted me not only to the world of banking but also to the organizational behavior of ICICI Bank. I really appreciate the help and guidance given to me by my guide Mr. Subhomoy Saha and my colleagues.

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Bibliography:

www.icicibank.com

ICICI Bank Products & Services – ICICI Bank Library

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