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Marketing Strategy Of Credit Card-ICICI Bank

1

Chapter-1

Credit Card

1.1 Introduction 1.2Working 1.3 Research Methodology

1.1 INTRODUCTION

A credit cardis apayment card issued to users as a system ofpayment.It allows the

cardholder to pay for goods and services based on the holder's promise to pay for them. The

issuer of the card creates arevolving account and grants aline of credit to theconsumer (or

the user) from which the user can borrow money for payment to a merchant or as acash

advance to the user.

A credit card is different from acharge card:a charge card requires the balance to be paid in

full each month.In contrast, credit cards allow the consumers a continuing balance of debt,

subject tointerestbeing charged. A credit card also differs from acash card,which can be

used like currency by the owner of the card. A credit card differs from a charge card also in

that a credit card typically involves a third-party entity that pays the seller and is reimbursed

by the buyer, whereas a charge card simply defers payment by the buyer until a later date.

1.2 How Do Credit Cards Works?

When you apply for a credit card, the bank you apply to carefully screens your application.

You cant blame them given that there is always a crook around the corner. A credit limit is

worked out for you, based on your financial capability and other parameters like income

levels, educational qualifications, age etc. The bank that issues you the card is called the

'issuing bank'. The Business From the bank's point of view, credit cards are good business for

two reasons. Banks make money through fees from merchant establishment. The higher than

normal interest rate paid by cardholders for the balance in their card. So what are these

merchant establishments? These form the heart of the business. Merchant establishments can

be hotels, shops, travel agencies or any place where money transactions are made. The banks

that enroll merchant establishments are called 'acquiring banks'. The relationship between the

bank and the merchant establishments is run via international networks such as Visa andMaster card. Your credit card is valid in any merchant establishment that accepts your
http://en.wikipedia.org/wiki/Payment_cardhttp://en.wikipedia.org/wiki/Paymenthttp://en.wikipedia.org/wiki/Revolving_accounthttp://en.wikipedia.org/wiki/Line_of_credithttp://en.wikipedia.org/wiki/Consumerhttp://en.wikipedia.org/wiki/Merchanthttp://en.wikipedia.org/wiki/Cash_advancehttp://en.wikipedia.org/wiki/Cash_advancehttp://en.wikipedia.org/wiki/Charge_cardhttp://en.wikipedia.org/wiki/Credit_card_interesthttp://en.wikipedia.org/wiki/Cash_cardhttp://en.wikipedia.org/wiki/Cash_cardhttp://en.wikipedia.org/wiki/Credit_card_interesthttp://en.wikipedia.org/wiki/Charge_cardhttp://en.wikipedia.org/wiki/Cash_advancehttp://en.wikipedia.org/wiki/Cash_advancehttp://en.wikipedia.org/wiki/Merchanthttp://en.wikipedia.org/wiki/Consumerhttp://en.wikipedia.org/wiki/Line_of_credithttp://en.wikipedia.org/wiki/Revolving_accounthttp://en.wikipedia.org/wiki/Paymenthttp://en.wikipedia.org/wiki/Payment_card

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network (ie Master Card or Visa), irrespective of the issuing bank. Most Indian card issuing

banks are part of either Master Card network or Visa network, or both. There are others credit

card networks like American Express and Diners Club too. The merchant establishment finds

the credit card a safer and efficient payment mode, and brings more business. The merchant

establishment pays a fee to the bank that enrolled it for the service. The Transaction When

you use a card at an establishment to purchase a product or service, your card is swiped on a

swipe-machine. The swipe machine is connected to a central computer belonging to the

network, which in turn is connected to all issuing banks. The system verifies with your

issuing bank whether you have sufficient credit to cover the purchase in a few seconds, and

approves or rejects the transaction. As soon as approval comes through, you are asked to sign

the charge slip. The merchant then verifies your signature with the one at the back of the

card. The charge slip is then forwarded to the acquiring bank, which in turn settles the

transaction with the merchant. The issuing bank also proceeds to bill you for payment as per

the cardholder agreement. The acquiring bank will settle the transaction with your issuing

bank through the network. Sounds pretty straightforward? Then you're wondering why credit

cards are such accursed instruments? That happens when you delay payments and get caught

in an interest cycle. When you use a credit card you have the option to pay only a part of the

total amount spent and carry forward the balance. But in such a case you will have to pay

interest on all your purchases without any free credit period. You can save yourself only if

you are prompt in paying the balance by the due date. Credit card users get a free period of

credit before they reimburse the credit card issuing bank. This may vary from 15 days to 40

days depending on the issuing banks. So that concludes our session on How Credit Cards

Work. If you're now looking for information on How Snow Leopards Mate then you're on the

wrong site my friend! Disclaimer: While we have made efforts to ensure the accuracy of our

content (consisting of articles and information), neither this website nor the author shall be

held responsible for any losses/ incidents suffered by people accessing, using or is supplied

with the content.

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3

ICICI Bank is India's largest private sector bank with total assets of Rs. 5,367.95 billion (US$

99 billion) at March 31, 2013 and profit after tax Rs. 83.25 billion (US$ 1,533 million) for

the year ended March 31, 2013. The Bank has a network of 3,384 branches and 11,063 ATMs

in India, and has a presence in 19 countries, including India.

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 in the areas of investment banking, life and non-life insurance.

The Bank currently 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. Our UK subsidiary has established branches.

ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and the National

Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on

the New York Stock Exchange (NYSE).

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1.3 Research Methodology

Marketing ResearchMarketing research is the function, which links the consumer, customer and public

to the marketer through information.

Information used to identified and define marketing opportunities and problems:

generate, refine and evaluate marketing action, monitor marketing performance, and

improve understanding of market as a process.

Marketing strategies of ICICI Bank vary in their specific objectives. They may be

used to correct new customer, to reward loyal customers ad to increase the

repurchase rates of occasional users.

In this study the for most data collection instrument used is the questioners method.

The questioner has been designed with both open ended and close ended questions. Apart

from this, the research instrument consists of primary and secondary data collected for the

study.

Primary DataHere first hand information is obtained by distributing printed questioners to

the marketing executives of the company. Data was also obtained from the observation

and interviews techniques adopted by the researchers. Moreover, information was

disseminated by the departmental heads.

Secondary DataHere the information is obtained from the brochure of Samsung group , books,

websites, newsletter, generals, magazines, newspaper, etc.

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5

Chapter-2

Credit Cards Facility By ICICI Bank

2.1 Facility 2.2 Types Of Credit Card 2.3 Parties involved in credit cards 2.4 Features Of Credit Card

2.1 FACILITY

In these terms and conditions, unless there is anything repugnant to the subject or context

thereof, the expressions listed below, if applicable, shall have the following meanings:

"EMI" or Equated Monthly Installment means the equated monthly installments of

amounts payable by the Card Member to ICICI Bank in respect of the Facility and comprises

of the principal amount of the Facility and interest thereon.

"Facility" means the facility offered on the available Credit-Limit and/or Cash-Limit /

temporarily enhanced Credit-Limit on installment provided / agreed to be provided by ICICI

Bank on the Credit Card, at its sole discretion, to the Card Member to the extent of amounts

not exceeding the available Cash-Limit and/or Credit-Limit or such enhanced amount

exceeding the available Cash-Limit / Credit-Limit, as may be decided by ICICI Bank, from

time to time.

Instant Money Service means the mode of confirming / providing disbursement advice

regarding the Facility within the available Cash-Limit and/or Credit-Limit by usage of theCard at the point of sale machines situated at select Merchant Establishment/s.

2.2 USAGE OF FACILITY

The Card Member can request for an amount upto the available Cash-Limit and/or Credit-

Limit on the Card Account or for an amount over the available Cash-Limit / Credit-Limit in

the form of a temporarily enhanced limit through an additional account linked to the existing

Card Account. Such amounts shall be disbursed to the Card Member in the form of a demanddraft or transfer to his/her ICICI Bank liability account, through ICICI Bank 24 Hour

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Customer Care or such other mode as may be communicated by ICICI Bank, from time to

time. The final approval of the amount of the Facility to be granted is subject to the Card

Members performance on the Card and the available Cash-Limit and/or Credit-Limit at the

time ICICI Bank receives the Card Member's request for the Facility. The Cash-Limit and/or

the Credit-Limit on the Credit Card will be blocked by the amount for which the Facility is

granted in cases where such amount forms part of the available Cash-Limit and/or Credit-

Limit. The Card-Member shall be required to pay a non-refundable processing fee on the

Facility upto the percentage specified by ICICI Bank to the Card Member at the time of

availing the Facility.

The Card Member hereby agrees to avail the Facility on the precondition that he will not use

the amount of the Facility, or any part thereof, towards capital market or for the purpose of

repaying his ICICI Bank Card outstandings.

In case of the InstaMoney Service, the Card Member may avail the Facility by swiping the

Card at point of sale machines situated at select Merchant Establishment/s. By affixing

signature on the InstaMoney disbursal advice chargeslip, the Card Member confirms the

availment of the Facility. In case where the Card Member avails the Facility through

InstaMoney Service, the same shall be disbursed to the Card Member only in the form of a

demand draft dispatched to the mailing address of the Card Member last recorded with ICICI

Bank.

RepaymentThe Card Member shall repay the Facility and interest thereon in EMIs. The interest shall be

at such rate which has been indicated by ICICI Bank to the Card Member at the time of

making the offer for the Facility and as also as communicated to the Card Member. Theinterest calculation will start from the time the request regarding the Facility has been

confirmed by the Card Member. The amount of the EMIs together with other details of the

Facility (including rate of interest) shall be communicated to the Card-Member at his/her

mailing address.

The amount of EMI due for a particular month shall subsequently be reflected in the

Statement for that particular month. In the case of the Facility offered as an enhanced amount

exceeding / over the available Cash-Limit / Credit-Limit, the Statement shall be

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communicated separately to the Card Member. In case of Facility granted upto the available

Cash-Limit and/or Credit-Limit, the Card Member hereby authorizes ICICI Bank to debit the

Card Account of the Card Member on a monthly basis for the amount of EMI due for that

particular month, as has been intimated to the Card Member through the Statement. Principal

and interest will be mentioned separately in the Statement. In case of Facility granted upto the

available Cash-Limit and/or Credit-Limit on the Card Account, the Cash-Limit and/or Credit-

Limit shall be reinstated to the extent of the amount of EMI repaid by the Card Member. In

case the Facility offered as an enhanced amount exceeding / over the available Cash-Limit /

Credit-Limit, such limit shall be reduced to the existing Credit-Limit and/or Cash-Limit upon

repayment of such enhanced amount by the Card Member.

The Card Member shall be required to pay the entire amount of the EMI for a particular

month on the due date, as indicated in the Statement and the same shall not be permitted to be

carried forward/included in the next Statement. In the event the payment is not made by the

due date as specified, it shall be construed as a default by the Card-Member and Card

Member shall become liable to pay the amount together with late payment charges, as

specified in the Primary Terms and Conditions.

ForeClosure Of FacilityIf the Facility is foreclosed/ terminated before the tenure of the repayment of the Facility, the

amount of the Facility outstanding at the time of foreclosure/termination together with all

interest thereon and all other monies in respect of the Facility shall become repayable by the

Card Member.

The Card Member may foreclose the Facility at any time by contacting ICICI Bank's 24 Hour

Customer Care to avail of the foreclosure. The Card Member shall pay such foreclosurecharges as may be indicated by ICICI Bank in the communication sent to the Card Member at

the time of granting the Facility.

ICICI Bank shall, without prejudice to all rights and remedies, have the right to call upon the

Card Member to forthwith repay the Facility, all interest thereon and all other monies in

respect of the Facility upon occurrence of event of default in repayment of the amount of the

Facility and the Card Member shall be liable to repay all such amounts upon such demand.

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Cancellation Of FacilityThe Card Member may cancel the Facility within 15 days of receiving the draft / transfer to

his/her ICICI Bank liability account by contacting ICICI Bank's 24 Hour Customer Care.

In case of a draft, the Card Member may request for such cancellation at ICICI Bank's 24

Hour Customer Care or return the draft at the address mentioned below. In case of transfer to

his/her ICICI Bank liability account, the cancellation request can be raised at ICICI Bank's 24

Hour Customer Care and such amount will be reversed from the account of the Card

Member, where the transfer was effected. Such cancellation shall be subject to non

encashment of the draft or amount being available in the account to effect reversal, as the

case may be.

Particular Affirmative Covenants1. The Card Member has understood ICICI Bank's method of calculating EMIs payable;2. The Card Member has understood that by availing the Facility, the Card Member shall

not be, unless otherwise stated by ICICI Bank in writing, eligible for any reward

points whatsoever, whether awarded under the ICICI Bank Reward Points Scheme or

any other Reward Points Scheme on the Card that may be announced by ICICI Bank

from time to time;

3. The Card Member shall renew the Card forthwith in the event the period of the Cardexpires during the tenure of the Facility. In the event of failure of the Card Member to

renew the Card as stated above, ICICI Bank shall be entitled to call upon the Card

Member to forthwith repay the Facility without prejudice to all rights and remedies

against the Card Member;

4. The Card Member is deemed to have accepted these terms and conditions upon theCard Member having requested for the Facility. The Card Member is aware that these

terms and conditions are available onwww.icicibank.com and has read and

understood the same;
http://www.icicibank.com/http://www.icicibank.com/

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5. Repayment by the Card Member of the entire amount of the Facility in case of facilityavailed upto the available Cash-Limit and/or Credit-Limit, to ICICI Bank shall release

the Credit-Limit and/or Cash-Limit for which the Card Member is eligible by virtue

of holding the Card;

6. The Card Member shall make payment of all taxes, duties, levies (including servicetax) in connection with the Facility.

Liabilities Of Card MemberICICI Bank reserves the right to require the Card Member to make advance payment of one

or more EMIs against grant of the Facility, and ICICI Bank shall have the right to adjust the

amount of the advance EMIs towards the balance amount of the Facility, at its sole discretion.

Events Of DefaultIf one or more of the events specified in this Clause ("Events of Default") occur or shall have

occurred, ICICI Bank may call upon the Card Member to foreclose the Facility by a notice in

writing to the Card Member.

The Card Member's commission of a breach of any of the terms and conditions andcovenants herein contained or having made any misrepresentation to ICICI Bank.

The Card Members having been declared as an insolvent. Any proceedings for misconduct having been initiated against the Card Member. The Card Members failure to furnish any information or documents that may be

required by ICICI Bank.

The Card Members entering into any composition with his/her creditors. The Card Members defaulting on any of the terms and conditions of any other loan

or facility provided by ICICI Bank to the Card-Member.

The existence of any other circumstances which, in the sole opinion of ICICI Bank,jeopardize ICICI Bank's interest.

Upon the occurrence of any event of default as specified above, ICICI Bank shall be entitled

to exercise rights and remedies available to it under these terms and conditions as also the

Primary Terms and Conditions.

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MiscellaneousDetails of all the charges applicable on the facility, including, but not limited to, processing

fee, foreclosure fee, service tax, interest rate shall be as per the Tariff Annexure.

Nothing contained in these terms and conditions shall be construed as an obligation of ICICI

Bank to continue to offer the Facility after the date of termination of the Facility. ICICI Bank

reserves the right at any time without previous notice to add, alter, modify, change or vary all

or any of these additional terms and conditions.

The Facility shall be available on the primary as well as the add-on Card, subject to the

available Cash-Limit and/or Credit-Limit and will be provided to the Card Member

requesting for the Facility, at the sole discretion of ICICI Bank.

The competent courts in Mumbai shall have exclusive jurisdiction to deal with any dispute

that may arise out of these additional terms and conditions or in respect of the Facility. The

existence of a dispute, if any, shall not constitute a claim against ICICI Bank.

In addition to the general right to set off or other right conferred by law or under any other

agreement, ICICI Bank may, without notice, combine or consolidate the standing balance on

the Card Member's Card Account, or the account linked to the Card Account, with any other

account(s) that the Card Member maintains with ICICI Bank and its group companies, and

set off or transfer money standing to his/her credit in such other account(s) in or towards the

satisfaction of the Card Member's liability to ICICI Bank under his/her Card Account / theFacility.

The terms and conditions governing the Facility shall be in addition to and not in substitution

/ derogation of the Primary Terms and Conditions governing the Card.

All capitalised terms used herein, but not defined, shall have the meaning ascribed to them in

the Primary Terms and Conditions governing the Card.

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2.2 TYPES OF CREDIT CARDS

i)Premium Cards:As the name suggest these cards offer better service to the card holder

and also a higher limit. There are also many rewards associated with these cards. The target

audiences for these credit cards are HNIs and top management in corporates.

ii)Cash Back Credit Cards: These kinds of cards provide rebate to the customer. This is

possible because when you shop, your merchant has to pay a small sum to the credit card

provider. Quite a few credit card issuers share the commission with the cardholders by giving

them rebate cash back and even discounts. Generally this amount ranges between 0.25% to

1.5%. The target audiences for these kinds of cards are working people.

iii)Secured Credit Cards:Its a type of card which is secured by savings bank account of

the cardholder for which the card holder must deposit 100% to 200% of the total amount of

the desired credit. In case the credit card holder defaults the credit card issuer can recover the

amount from deposit amount. The target audiences for these kinds of cards are students and

people with poor credit history.

iv)Business Credit Cards:These cards are available for business owners and executives.They are more or less similar to the premium cards. This enables business owners to keep

separate transactions for personal and business purposes.

v)Prepaid Credit Cards:These are like prepaid cards, somewhat similar to debit cards.

They work on the theme of pay now and use at your convenience, very similar to prepaid

mobile phone cards. Cardholder needs to load the desired amount which s/he wishes to use.

There are no interest charges but a purchasing fee plus monthly fees is levied. Target group

for these cards are students, working people.

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2.3 PARTIES INVOLVED IN CREDIT CARDS

i)Cardholder: The holder of the card used to make a purchase; the consumer.

ii)Card-issuing bank: The financial institution or other organization that issued the credit

card to the cardholder. This bank bills the consumer for repayment and bears the risk that the

card is used fraudulently. American Express and Discover were previously the only card-

issuing banks for their respective brands, but as of 2007, this is no longer the case. Cards

issued by banks to cardholders in a different country are known asoffshore credit cards.

iii)Merchant: The individual or business accepting credit card payments for products or

services sold to the cardholder.

iv)Acquiring bank:The financial institution accepting payment for the products or services

on behalf of the merchant.

v)Independent sales organization:Resellers (to merchants) of the services of the acquiring

bank.

vi)Merchant account:This could refer to the acquiring bank or the independent sales

organization, but in general is the organization that the merchant deals with.

vii)Credit Card association: An association of card-issuing banks such

asDiscover,Visa,MasterCard,American Express,etc. that set transaction terms for

merchants, card-issuing banks, and acquiring banks.

viii)Transaction network: The system that implements the mechanics of the electronic

transactions. May be operated by an independent company, and one company may operate

multiple networks.

ix)Affinity partner: Some institutions lend their names to an issuer to attract customers that

have a strong relationship with that institution, and get paid a fee or a percentage of the

balance for each card issued using their name. Examples of typical affinity partners are

sports teams, universities, charities, professional organizations, and major retailers.
http://en.wikipedia.org/wiki/Consumerhttp://en.wikipedia.org/wiki/Offshore_credit_cardhttp://en.wikipedia.org/wiki/Acquiring_bankhttp://en.wikipedia.org/wiki/Acquiring_bankhttp://en.wikipedia.org/wiki/Acquiring_bankhttp://en.wikipedia.org/w/index.php?title=Independent_sales_organization&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Independent_sales_organization&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Independent_sales_organization&action=edit&redlink=1http://en.wikipedia.org/wiki/Merchant_accounthttp://en.wikipedia.org/wiki/Merchant_accounthttp://en.wikipedia.org/wiki/Merchant_accounthttp://en.wikipedia.org/wiki/Discover_Cardhttp://en.wikipedia.org/wiki/Discover_Cardhttp://en.wikipedia.org/wiki/Visa_(company)http://en.wikipedia.org/wiki/Visa_(company)http://en.wikipedia.org/wiki/MasterCardhttp://en.wikipedia.org/wiki/MasterCardhttp://en.wikipedia.org/wiki/American_Expresshttp://en.wikipedia.org/wiki/American_Expresshttp://en.wikipedia.org/wiki/American_Expresshttp://en.wikipedia.org/wiki/MasterCardhttp://en.wikipedia.org/wiki/Visa_(company)http://en.wikipedia.org/wiki/Discover_Cardhttp://en.wikipedia.org/wiki/Merchant_accounthttp://en.wikipedia.org/w/index.php?title=Independent_sales_organization&action=edit&redlink=1http://en.wikipedia.org/wiki/Acquiring_bankhttp://en.wikipedia.org/wiki/Offshore_credit_cardhttp://en.wikipedia.org/wiki/Consumer

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x)Insurance providers: Insurers underwriting various insurance protections offered as credit

card perks, for example, Car Rental Insurance, Purchase Security, Hotel Burglary Insurance,

Travel Medical Protection etc.

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2.4FEATURES OF CREDIT CARDS

Convenience, Security and Flexibility

No Joining Fee Enjoy security of a Chip Card Earn 2 PAYBACK points on every Rs.100 spent Minimum 15% savings on dining at participating restaurants Save on 2.5% fuel surcharge, waived off at HPCL petrol pumps

Smart Savings.Incredible Rewards.

Reduce fuel bills with 2.5% cash back & 2.5% fuel surcharge Earn free fuel with 2.5X rewards on fuel purchases Up to Rs.200 off every month on movie tickets Minimum 15% savings at participating restaurants Additional security of a chip

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Convert your everyday card purchases into free flights

15,000* bonus JPMiles and a complimentary ticket on joining Assured 8 JPMiles*/Rs 100 on all spends 5,000 JPMiles and another complimentary ticket on renewal Buy 1 get 1 movie ticket free, savings on dining and golf *Valid under Special Offer between July 15October 31, 2013


7,500* bonus JPMiles and a complimentary ticket on joining* Assured 6 JPMiles*/Rs 100 on all spends 2,500 JPMiles and another complimentary ticket on renewal Buy 1 get 1 movie ticket free, savings on dining and golf *Valid under Special Offer between July 15October 31, 2013

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1,000 Welcome Bonus JPMiles on joining* Assured 4 JPMiles/Rs 100 on all spends 1,250 bonus JPMiles every year on renewal Buy 1 get 1 movie ticket free, savings on dining and golf *Valid under Special Offer between July 15October 31, 2013


10,000 bonus JPMiles and a complimentary ticket on joining Upto 12 JPMiles per Rs. 100 spent at www.jetairways.com 5,000 JPMiles and another complimentary ticket on renewal eBooking discount, extra baggage allowance, premier check-in Buy 1 get 1 movie ticket free, savings on dining and golf

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5,000 bonus JPMiles and a complimentary ticket on joining Upto 10 JPMiles per Rs. 100 spent at www.jetairways.com 2,500 JPMiles and another complimentary ticket on renewal eBooking discount, extra baggage allowance, premier check-in Buy 1 get 1 movie ticket free, savings on dining and golf

2,500 welcome bonus JPMiles on joining Upto 7 JPMiles per Rs. 100 spent at www.jetairways.com 1,250 bonus JPMiles on renewal every year eBooking discount, extra baggage allowance, premier check-in Buy 1 get 1 movie ticket free, savings on dining and golf

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Unlimited Cash Rewards.Every day.Everywhere.

Limited period offer: Joining fee Rs.1000 Rs.500 2X cash rewards on dining, groceries and at supermarkets Buy 1, get 1 movie ticket free, through the week Get a complimentary designer tie/stole and gift vouchers from Satya Paul on joining

Unlimited Cash Rewards.Every day.Everywhere.

Limited period offer: Joining fee Rs.1000 Rs.500 2X cash rewards on dining, groceries and at supermarkets Buy 1, get 1 movie ticket free, through the week Get a complimentary designer tie/stole and gift vouchers from Satya Paul on joining.

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Two Cards.One Account.Infinite possibilities.

India's first dual Platinum Credit Card. Benefits from American Express & MasterCard Flexible rewards plans Exclusive privileges across entertainment, dining, wellness and golf A complimentary set of Bose IE2 Audio Headphones on joining

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The next level of Credit Card Privilege

Gold Elite tier membership of the Flying Blue frequent flier programme Complimentary airport lounge access Exclusive events & Thursday night movie premieres A complimentary Apple iPad2 16GB WiFi on joining

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Chapter-3

Company profile

3.1 Introduction 3.2 History Of Banking System 3.3 Corporate Banking

3.1INTRODUCTION

ICICI Bank is India's second-largest bank with total assets of Rs.3,674.19 billion(US$ 77 bil lion) at June 30, 2009 and profit after tax Rs. 8.78 billion for the quarter

ended June 30, 2009. The Bank as a network of 1,485 bran ches and about 4,816

ATMs in India and p re sence in 18 co un t r i e s . IC ICI Ban k o f fe r s a w id e

r a n g e o f b a n k i n g p r o d u c t s a n d f i n a n c i a l s e r v i c e s t o c o r p o r a t e a n d r e t a i l

customers through a variety of delivery channels and through its specialised

subsidiaries and affiliates in the areas of investmentba nk in g, l i fe an d no n- li fe

i n s u ra n ce , v e nt u r e ca p it al a nd as s et management. ICICI was established by theGovernment of India in the 1960s as a Financial Institution with the objective to finance large

industrial project s. IC ICI was not a bank - it could not t ake retail deposit s; and nor

was it required to comply with ICICI Bank now has the largest market share amon g

a ll banks in r e t a i l o r consumer f inanc ing . IC ICI Ba nk i s t he l a rges t

i s s u e r o f credit cards in India. It was the fi rst bank to offer a wide network of

ATM's and has a large network of ATM's. ICICI Bank now has the largest market value

of all banks in India, and is widely seen as a sophisticated bank able to take on many global

banks in the Indian market.

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3.2 HISTORY OF ICICIBANKING SYSTEM

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 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

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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 has formulated a Code of Business Conduct and Ethics for its directors and

employees.

3.3CORPORATE BANKING

At ICICI Bank, we offer corporates a wide range of products and services, the technologies to

leverage them anytime, anywhere and the expertise to customize them to client-specific

requirements.

From cash management to corporate finance, from forex to acquisition financing, we provide

you with end-to-end services for all your banking needs. The result is an overall financial

solution for your company that helps you accomplish your objectives.

ICICI Bank can guide you through the universe of strategic alternatives - from identifying

potential merger or acquisition targets to realigning your business' capital structure.

ICICI Bank has been the foremost arrangers of acquisition finance for cross border

transactions and is the preferred financer for acquisitions by Indian companies in overseas

markets.

The Bank has also developed Forex risk hedging products for clients after comprehensive

research of the risks a corporate body is exposed to, e.g., Interest Rate, Forex, Commodity,

Credit Risk, etc.

We offer you global services through our correspondent banking relationship with 950

foreign banks and maintain a NOSTRO account in 19 currencies to service you better and

have strong ties with our neighbouring countries

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ICICI Bank is the leading collecting bankers to Public & Private Placement/ Mutual Funds/

Capital Gains Bonds issues. Besides, we have products specially designed for the financial

intermediaries to meet their unique requirements.

We support your international business by meeting working capital requirements of export

and import financing. We also have a host of non-funded services for our clients.

Whatever your industry, size or financial requirements, ICICI Bank has the expertise and the

solutions to partner you all the way.

Transaction Banking

The Bank delivers world class banking services to financial sector clients. Our current

roaming accounts empower you with 'Anytime, Anywhere Banking'. They are designed for

your convenience. Our comprehensive collection and payment services span India's largest

CMS network of over 4,500 branches. We provide correspondent banking tie-ups with

foreign banks to assist them in their India-related businesses.

Loan Syndication

The FISG is responsible for syndication of loans to corporate clients. We ensure the

participation of banks and financial institution for the syndication of loans. Some of the

products syndicated are

Project Finance

Corporate Term Loans

Working Capital Loans

Acquisition Finance, etc.

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Sell Down

ICICI Bank is a market leader in the securitisation and asset sell-down market. From its

portfolio, the FISG offers different products to its clients in this segment. The products are:

Asset-Backed Securities (ABS).

Mortgage-Backed Securities (MBS).

Corporate Loan Sell-down.

Direct Loan Assignment.

Buyouts

As a part of a risk-diversification and portfolio-churning strategy, ICICI Bank offers buyouts

of the assets of its financial sector clients.

Resources

The Bank also raises resources, from clients, for internal use by issuing a gamut of products,

which run from Certificates of Deposit (CDs) to Term deposits to Term Loans.

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Chapter-4

CREDIT CARD V/S DEBIT CARD

Meaning:- A debit cardis either linked to a bank account or is a prepaid card. In either case,

the card draws on funds that the consumer (owner of the card) has already deposited with a

financial institution. On the other hand, a credit cardis a kind of loan. When a consumer

uses a credit card, the financial institution fronts to the consumer credit (a loan). Purchases

are totaled and billed monthly and the user pays a few weeks after receiving the monthly bill.

Credit Card Debit Card

Where money

comes from:

Borrowing money from a bank or

financial institution. (Spending

"other's" money)

Funds taken from the money that

you have in your bank account.

(Spending your "own" money)

Can be used as: Credit card only Debit or credit card i.e., a debit

cardmay be used without a PIN for

certain types of transactions such

as e-commerce.

Line of Credit: Carries Line of Credit No Line of Credit

PIN Number: Usually not. However, some credit

cards may provide PINs to allow

consumers to withdraw

money from ATMs just like debit

cards. Such withdrawals are

generally a bad idea because they

PIN number provided, but not

always asked to punch in.

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Credit Card Debit Card

carry high fees and interest rates.

Picture ID

required before

issuance:

Yes No

Interest: If a credit card bill is not paid in

full, interest is charged onoutstanding balance and the

interest rate is very high.

No interest is charged because no

money is borrowed. Consumer'sown funds are used to make

purchases.

Credit History: Responsible credit card usage and

payment can improve one's credit

rating. Credit cards typically

report account activity to at least

one ofthe three major credit

bureaus on a monthly basis.

Does not affect credit history.

Legal Liability

laws:

Strict. Consumer liability limit

forcredit card fraud is $50 if

the credit card company is notified

within 60 days in written since the

fraudulent charges.

Lean. Consumer liability limit for

debit card fraud is $50 if the bank

is notified within two days of

noticing the fraudulent charges.

Risk involved: Low. Consumers are protected

against unauthorized purchases as

long as the fraud is reported in a

timely manner. Consumers are not

High, as they are attached to a

bank account. A person does not

need a PIN number to use a debit

card and therefore can easily drain

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FINDINGS

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APPENDIX

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FUTURE PROSPECTUS

Future prospects of ICICI bank To be the leading provider of financial services in India and a

major global bank. To be the preferred brand for total financial and banking solutions for

both corporates and individuals To be the dominant Life, Health and Pensions player built on

trust by world- class people andservice. This we hope to achieve by: Understanding the

needs of customers and offering them superior products and service.Leveraging technology to

service customers quickly, efficiently and conveniently.Developing and implementing

superior risk management andinvestment strategies to offer sustainable and stable returns to

ourpolicyholders. Providing an enabling environment to foster growth and learning for our

employees

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CONCLUSION

ICICI Bank proves to be an ideal & leading other banks by using latest technologies and

variety of services. The students are expecting more beneficial services from the bank such

as educational loans, etc. Students of all colleges accept ICICI BankBank @ Campus

Account as a good step into the students services. As the first bank to introduce special

savings account for students, it should keep-up the expectations of students by regularly

conducting surveys on student service and alter services in favour of students. It is easy to

gain a fine position but harder to retain it.

Studentsare the building blocks of a nation,

In future, they mature to employees & business persons

with lots of money at ICICI Bank!

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Bibliography

Internet

Websites:

i)www.iciciprulife.com

ii)www.icicibank.com

iii)www.bima.com

Directories:

i) Telephone Directory

Other Materials :

i) Marketing Management by Philip Kotler.

ii)Human Resources Management by Ashawathapa

Product Brochures.

News Papers like Mid day, Mumbai Mirror and Times of India
http://www.bima.com/http://www.bima.com/http://www.bima.com/http://www.bima.com/

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