e-Finance for Development- An Indian Perspective

ICICI BANK

INTRODUCTION OBJECTIVE ACQUISITION FUNCTIONAL ACTIVITIES OPERATIONAL ACTIVITIES PROMOTIONAL ACTIVITIES RECOGNITION BANKING SEGMENTS SUBSIDERIES STRATEGIC FRAMEWORK ONLINE PRODUCTS KEY TRENDS & FORCES

TABLE OF CONTENTS

It is a major banking & financial services organisation in India formed in 1954

It is the second largest bank in India It is the largest private sector bank in India

ICICI-An IntroductionIndustrial Credit and Investment Corporation of India,

In 1954, ICICI Ltd was incorporated at the initiatives of world bank , Govt of India & representatives of Indian Industry with the objective of creating a development financial Institution for providing medium term & long term project financing for Indian Business.

OBJECTIVE

2005 - Investitsionno-Kreditny Bank (IKB), a Russian bank

2007 - Sangli Bank , Maharashtra State 23 May - Bank of Rajasthan

ACQUISITION

Its shares are listed on the stock exchanges at BSE, NSE, Kolkata & Vadodara

ICICI Bank undertake normal banking operations – taking deposits, credit cards, car loans etc

FUNCTIONAL ACTIVITIES

The bank has a network of 2016 branches (as on 31st mar 2010) & 5219 ATM’s in India & presence in 18 countries

On 23 may 2010, ICICI Bank announced that it will merge with Bank of Rajasthan through a share swap in a non cash deal that values the Bank of Rajasthan at about Rs 3000 crore. ICICI announced that the merger expand ICICI Bank’s branch network by 25%

OPERATIONAL ACTIVITIES

It is the largest issuer of credit cards in India

It is one of the big four banks of India, along with SBI, PNB & Canara Bank- its main competitors

PROMOTIONAL ACTIVITIES

The Brand Trust Report , launched in 2011, has ranked ICICI in the 15th place as the most trusted brand of India.

ICICI Bank is one of the Big Four Banks of India, along with State Bank of India, Punjab National Bank Bank of India and Canara Bank — its main competitors

RECOGNITION

Retail Banks -> 58% of revenue Small Enterprises -> 8% of revenue Corporate Banks & Project Finance -> 13%

of revenue International Banks -> 21% of revenue

BANKING SEGMENTS

On 18th oct 2010 ICICI inaugurated I-Express, an instant cross-border money

transfer option for NRI’s ICICI Lombard GIC Ltd -> Largest private

sector general Insurance Company in India. ICICI Prudential -> It was the amung the

first private sector life insurance companies to begin operations in December 2000 after approval of IRDA

SUBSIDERIES

ICICI Lombard GIC Ltd

Type Public Listed CompanyIndustry InsuranceFounded 2001Headquarters Mumbai, IndiaKey people Bhargav Dasgupta, MDProducts General insuranceNet income 144 crore (US$31.25 million)Employees 4634 (as March 2010)Parent ICICI Bank, Fairfax FinancialWebsite ICICI Lombard

ICICI Lombard

ICICI Lombard GIC Ltd. is the largest private sector general insurance company in India with a Gross Written Premium (GWP) over 3,694.80 crore (US$801.77 million)as of March 2010.

The company issued over 44 lakh policies and settled over 62 lakh claims and has a claim disposal ratio of 96% of total reported claims.

ICICI Lombard GIC Ltd. is a 74:26 joint venture between ICICI Bank Limited, India’s second largest bank and Fairfax Financial Holdings Limited, a Canada based USD 30 billion diversified financial services company.

The company has strength of 4,634 employees working in 350 branches across India

ICICI Lombard

Channel is the term used for the various approaches a company uses to tap its customers. ICICI Lombard uses a multi channel approach to sales, service and other allied activities.

The channels used by ICICI Lombard can be broadly stated as under:

Channels

ICICI Lombard was among the first companies to make their insurance products available online in India. ICICI Lombard has web-based systems to meet all pre and post-policy transactional needs of its customers. One can compare plans, get quotes, buy, renew and keep a track of their insurance policies online.

ICICI Lombard offers its customers retail general insurance products online. These products are Car, Two Wheeler, Health, Travel, Student Travel, Personal Accident and Home Insurance

Buying Insurance Online

ICICI Lombard was the first general insurance company in India to start telesales operations due to its inherent profitability.

Telecalling

Type Private limited company

Industry Insurance

Headquarters Mumbai

Key people Sandeep Bakshi, Managing Director

Products Individual and Group Insurance Plans

Website Official Website

ICICI Prudential

ICICI Prudential is the first private sector life insurance companies to begin operations in December 2000 after receiving approval from Insurance Regulatory Development Authority (IRDA).ICICI Prudential Life's capital stands at Rs. 4,780 crores (as of September 30, 2010) with ICICI Bank and Prudential plc holding 74% and 26% stake respectively. The company has a network of over 1,500 offices and over 1,60,000 advisors, as on September 30, 2010. The company has assets held over Rs. 65,000 crores as on September 30, 2010

ICICI PRUDENTIAL - AN INTRODUCTION

In June, 2009 ICICI Prudential Life Insurance has decided to snap its tie up with TTK Healthcare to settle insurance claims of its users.ICICI Prudential's life insurance products may be loosely categorized under three forms- Health Insurance, Life and Retirement.Under the Health Insurance category it offers products like ICICI Pru Health Saver & ICICI Pru MediAssure. Under the Retirement Insurance category it offers products like ICICI Pru Forever Life & ICICI Pru LifeLink Pension. Under the Life Insurance Category it offers plans like i-Protect term plan, Pure-Protect and Life Guard.

ICICI PRUDENTIAL

Product lead approach for each sector◦ Small and Medium Enterprise (SME)◦ Agriculture and Micro Finance◦ Community Banking◦ Internet and Electronic Banking

Product and delivery technology dependent

Branch remote approach Central processing centres enable

optimum monitoring

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ICICI Group - Development framework

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SME - Strategic frameworkConcerns• Improve Quality• Exit weak accounts• Improve yields• Reprice on RaRoC

benchmark• Reduce delivery

cost• Web / call centre

based delivery

Aspirations • Non capital

intensive growth• Liability/ fee

income• Cash management

product • Innovative delivery • Smart / Credit cards• Web / call centre

delivery• Service

relationships• Banker for services

rather than credit

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SME - Service & DeliveryInformationLogging requests

Call centre

Customer

Branch

ATM

For all transactions except high value cash

Drop box pointHigh value cash

transactions

Handles exceptions Cross sells Monitors accounts

Account/ Relationship manager

Trade finance factory

Credit factory

RPC/CPC

Processes all pure credit related requests

Processes all trade related requests for a city

Provide support backbone for all transaction requests

Services doorstep deliveries

InformationLogging

requests

Internet“Processing centres*”

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Online Products

e-banking in ICICI

ICICI Marketsonline FX, Debt, SME Portal

Corporate Infinityonline transfer/ settlement system

Bill JunctionUtility bill payments

Business Multiplierweb interface

ICICI Direct and ICICI Select

Pay Sealelectronic payment system

Innovative structure for micro-credit in rural areas ◦ Overcome the reach problem◦ Lower administration costs

Channels for delivering micro-credit◦ Sugar companies ◦ Seed producers ◦ Input companies◦ NGOs and micro credit institutions

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Agri - Micro-credit initiatives

These channels help build volumes, reduce costs and monitor credit risk

FSC provides one stop solution to the farmer◦ Agri extension support◦ Inputs and other services◦ Credit◦ Market linkage◦ Rural infrastructure

These FSCs are promoted by Agri Input suppliers , and avoids duplication of efforts by different players

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Agri - Farmer Service Centres (FSCs)

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Smart card solution for FSCs

Bank Account/ Credit History

Output Sale

Collect Money

Farmer Service Center

• Credit• Debit• e-purse

Merchant Store

Input

Online update of Bank accounts

Difficulty in rural banking◦ Management of Cash

Cost of idle cash Cost of cash handling infrastructure

◦ Geographical spreads Solutions through

◦ Elimination/ reduction of cash handling◦ Innovation of low cost delivery channels

Smart Card - an ideal vehicle

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Smart Cards … An alternative

Smart Cards launched in October 2000◦ Infosys Campus in Bangalore◦ Manipal Academy of Higher Education

(MAHE) New Initiatives

◦ Satyam Smart Card◦ HPCL Petro Card ◦ Work on multiple application card - Debit,

Credit, E-Purse and Loyalty

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Smart Cards at ICICI

First Bank in India to launch website - 1996

First Bank in India to launch Internet Banking - 1997

First Bank in India to launch online bill payment-1999

Only Bank in India with million online customers

Monthly average transactions per online customer- 7

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Internet Banking

Channel Usage

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Apr 2001

Branch41%

ATM51%

Internet4%

Call Centre

4%

Branch ATM Call Centres Net COPS

J an-02 18% 82%Apr-01 19% 81%

J an-02 41% 33% 9% 7% 10%Apr-01 50% 39% 6% 5% Nil

Cash Transactions

Non Cash Transactions

NilNil

Indian Companies increasing commercial borrowing for both International & domestic growth –a key news for ICICI growth

RBI approval for new branches leads to increase in low cost deposits

Interest rate fluctuations increase ICICI Bank debt payments

KEY TRENDS & FORCES

PRESENTED TO

PRESENTED BY

CLASSROLL NO.

MISS RASHMISUMIT TUTEJA

MFC(P)13

e-enabling the economy

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