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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
Thank You !!!