Innovations Of ICICI Bank And Indian Banking

The definition of a bank varies from state to state. Bank in general means a corporation empowered to cover with hard currency, domestic and foreign, and to have the sedimentations of money and to loan those money to third-parties for an involvement fee. A bank is a fiscal mediator that accepts sedimentations and channels those sedimentations into loaning activities, either straight or through capital markets. A bank connects clients with capital shortages to clients with capital excesss.

Banking is by and large a extremely regulated industry, and authorities limitations on fiscal activities by Bankss have varied over clip and location

History:

Banking in the modern sense of the word can be traced to medieval and early Renaissance Italy, to the rich metropoliss in the North like Florence, Venice and Genoa. Possibly the most celebrated Italian bank was the Medici bank, set up by Giovanni Medici in 1397. The earliest known province sedimentation bank, Banco di San Giorgio ( Bank of St. George ) , was founded in 1407 at Genoa, Italy.

Banks can be traced back to antediluvian times even before money when temples were used to hive away trade goods. During the third century AD, Bankss in Persia and other districts in the Iranian Sassanid Empire issued letters of recognition known as ‘Sakks ‘ . Muslim bargainers are known to hold used the check or Sakk system since the 9th century. In this century, a Muslim man of affairs could hard currency an early signifier of the check in China drawn on beginnings in Baghdad, a tradition that was significantly strengthened in the 13th and 14th centuries, during the Mongol Empire. Fragments found in the Cairo Geniza indicate that in the twelfth century checks unusually similar to our ain were in usage, merely smaller to salvage costs on the paper. They contain a amount to be paid and so the order “ May so and so pay the carrier such and such an sum ” . The day of the month and name of the issuer are besides evident.

Beginning of the word:

The word ‘bank ‘ was borrowed in Middle English from Middle French ‘banque ‘ , from Old Italian ‘banca ‘ , from Old High German ‘banc ‘ , bank ‘bench, counter ‘ . Benchs were used as desks or exchange counters during the Renaissance by Florentine bankers, who used to do their minutess atop desks covered by green tablecloths.

The earliest grounds of money-changing activity is depicted on a Ag Greek dram coin from ancient Hellenic settlement ‘Trapezus ‘ on the Black Sea, modern Trabzon, c. 350-325 BC, presented in the British Museum in London. The coin shows a banker ‘s tabular array ( trapeza ) laden with coins, a wordplay on the name of the metropolis. In fact, even today in Modern Greek the word ‘Trapeza ‘ agencies both a tabular array and a bank.

Channelss:

Banks offer many different channels to entree their banking and other services:

ATM is a machine that dispenses hard currency and sometimes takes sedimentations without the demand for a human bank Teller. Some ATMs provide extra services.

A subdivision is a retail location.

Name centre to manage client questions.

Mail: Most Bankss accept look into sedimentations via mail and utilize mail to pass on to their clients, eg by directing out statements.

Mobile banking is a method of utilizing one ‘s nomadic phone to carry on banking minutess.

Online banking is a term used for executing minutess, payments etc. over the Internet.

Relationship Directors, largely for private banking or concern banking, frequently sing clients at their places or concerns.

Telephone banking is a service which allows its clients to execute minutess over the telephone without talking to a human.

Video banking is a term used for executing banking minutess or professional banking audiences via a distant picture and audio connexion. Video banking can be performed via intent built banking dealing machines ( similar to an Automated Teller machine ) , or via a videoconference enabled bank subdivision.

Banking Business Model:

A bank can bring forth gross in a assortment of different ways including involvement, dealing fees and fiscal advice. The chief method is via bear downing involvement on the capital it lends out to clients. The bank net incomes from the derived function between the degree of involvement it pays for sedimentations and other beginnings of financess, and the degree of involvement it charges in its loaning activities. This difference is referred to as the spread between the cost of financess and the loan involvement rate. Historically, profitableness from loaning activities has been cyclical and dependent on the demands and strengths of loan clients and the phase of the economic rhythm. Fees and fiscal advice constitute a more stable gross watercourse and Bankss have hence placed more accent on these gross lines to smooth their fiscal public presentation. Banks have sought to increase the methods of payment processing available to the general public and concern clients. These merchandises include debit cards, prepaid cards, smart cards, and recognition cards. They make it easier for consumers to handily do minutess and smooth their ingestion over clip Banks make money from card merchandises through involvement payments and fees charged to consumers and dealing fees to companies that accept the cards. This helps in doing net income and facilitates economic development as a whole.

Types of Bankss

Banks ‘ activities can be divided into:

Retail banking, covering straight with persons and little concerns ;

Business banking, supplying services to mid-market concern ;

Corporate banking, directed at big concern entities ;

Private banking, supplying wealth direction services to high net worth persons and households ; and

Investing banking, associating to activities on the fiscal markets.

Cardinal Bankss are usually government-owned and charged with quasi-regulatory duties, such as oversing commercial Bankss, or commanding the hard currency involvement rate. They by and large provide liquidness to the banking system and act as the loaner of last resort in event of a crisis.

Muslim Bankss adhere to the constructs of Islamic jurisprudence. This signifier of banking revolves around several well-established rules based on Islamic canons. All banking activities must avoid involvement, a construct that is forbidden in Islam. Alternatively, the bank earns net income and fees on the funding installations that it extends to clients.

Most Bankss are profit-making, private endeavors. However, some are owned by authorities, or are non-profit organisations.

Size of planetary banking industry:

Assetss of the largest 1,000 Bankss in the universe grew by 6.8 % in the 2008/2009 fiscal twelvemonth to a record $ 96.4 trillion while net incomes declined by 85 % to $ 115bn. Growth in assets in inauspicious market conditions was mostly a consequence of recapitalisation. EU Bankss held the largest portion of the sum, 56 % in 2008/2009, down from 61 % in the old twelvemonth. Asiatic Bankss ‘ portion increased from 12 % to 14 % during the twelvemonth, while the portion of US Bankss increased from 11 % to 13 % . Fee gross generated by planetary investing banking totaled $ 66.3bn in 2009, up 12 % on the old twelvemonth.

Major International Players:

Sr.No

Bank

State

1

Bank Of America Corporation

United States

2

HSBC Holdings Plc

United Kingdom

3

JP Morgan Chase & A ; Co.

United States

4

Citigroup Inc

United States

5

Intesa Sanpaolo ( a )

Italy

6

Royal Bank Of Scotland Group Plc ( The )

United Kingdom

7

Mitsubishi Ufj Financial Group Inc

Japan

8

Unicredito Italiano Spa

Italy

9

Banco Santander SA

Spain

10

BNP Paribas

France

11

Wachovia Corporation

United States

12

Industrial & A ; Commercial Bank Of China ( The ) – ICBC

China

13

Barclays Plc

United Kingdom

14

Fortis Bank

Belgique

15

Credit Agricole

France

16

China Construction Bank Corporation

China

17

Deutsche Bank AG

Germany

18

Bank Of China Limited

China

19

Wells Fargo & A ; Company

United States

20

ING Groep NV

Nederlands

21

Banco Bilbao Vizcaya Argentaria SA

Spain

22

ABN Amro Holding NV

Nederlands

23

Sumitomo Mitsui Financial Group, Inc

Japan

24

Hbos Plc

United Kingdom

25

Rabobank Nederland

Nederlands

Banking IN INDIA

History:

Banking in India originated in the last decennaries of the eighteenth century. The first Bankss were The General Bank of India which started in 1786, and the Bank of Hindustan, both of which are now defunct. The Bank of Calcutta was established in June 1806, which about instantly became the Bank of Bengal. In 1840, the Bank of Bombay and IN 1843, the Bank of Madras was besides set up.

These were the three presidential term Bankss, which were established under charters from the British East India Company. For many old ages the Presidency Bankss acted as quasi-central Bankss, as did their replacements. The three Bankss merged in 1921 to organize the Imperial Bank of India, which, upon India ‘s independency, became the State Bank of India.

Indian merchandisers in Calcutta established the Union Bank in 1839, but it failed in 1848 as a effect of the economic crisis of 1848-49. The Allahabad Bank, established in 1865 and still working today, is the oldest Joint Stock bank in India. Foreign Bankss excessively started to get, peculiarly in Calcutta, in the 1860s. The Comptoire d’Escompte de Paris opened a subdivision in Calcutta in 1860, and another in Bombay in 1862 ; subdivisions in Madras and Pondicherry, so a Gallic settlement, followed. HSBC established itself in Bengal in 1869. Calcutta was the most active trading port in India, chiefly due to the trade of the British Empire, and so became a banking centre.

The first wholly Indian articulation stock bank was the Oudh Commercial Bank, established in 1881 in Faizabad. It failed in 1958. The following was the Punjab National Bank, established in Lahore in 1895, which has survived to the present and is now one of the largest Bankss in India. Around the bend of the twentieth Century, the Indian economic system was go throughing through a comparative period of stableness. Around five decennaries had elapsed since the Indian Mutiny, and the societal, industrial and other substructure had improved. Indians had established little Bankss, most of which served peculiar cultural and spiritual communities.

The presidential term Bankss dominated banking in India but there were besides some exchange Bankss and a figure of Indian articulation stock Bankss. All these Bankss operated in different sections of the economic system. The exchange Bankss, largely owned by Europeans, concentrated on funding foreign trade. Indian articulation stock Bankss were by and large under capitalized and lacked the experience and adulthood to vie with the presidential term and exchange Bankss.

The period between 1906 and 1911, saw the constitution of Bankss inspired by the Swadeshi motion. The Swadeshi motion inspired local business communities and political figures to establish Bankss of and for the Indian community. A figure of Bankss established so have survived to the present such as Bank of India, Corporation Bank, Indian Bank, Bank of Baroda, Canara Bank and Central Bank of India.

During the First World War ( 1914-1918 ) and through the terminal of the Second World War ( 1939-1945 ) , and two old ages thenceforth until the independency of India, were disputing for Indian banking. The old ages of the First World War were disruptive, and it took its toll with Bankss merely fall ining despite the Indian economic system deriving indirect encouragement due to war-related economic activities.

The divider of India in 1947 adversely impacted the economic systems of Punjab and West Bengal, paralysing banking activities for months. India ‘s independency marked the terminal of a government of the Laissez-faire for the Indian banking. The Government of India initiated steps to play an active function in the economic life of the state, and the Industrial Policy Resolution adopted by the authorities in 1948 envisaged a assorted economic system. This resulted into greater engagement of the province in different sections of the economic system including banking and finance.

The major stairss to modulate banking included:

In 1948, the Reserve Bank of India, India ‘s cardinal banking authorization, was nationalized, and it became an establishment owned by the Government of India.

In 1949, the Banking Regulation Act was enacted which empowered the Reserve Bank of India ( RBI ) “ to modulate, control, and inspect the Bankss in India. ”

The Banking Regulation Act besides provided that no new bank or subdivision of an bing bank could be opened without a licence from the RBI, and no two Bankss could hold common managers.

However, despite these commissariats, control and ordinances, Bankss in India except the State Bank of India, continued to be owned and operated by private individuals. This changed with the nationalization of major Bankss in 1960 ‘s. By the sixtiess, the Indian banking industry had become an of import tool to ease the development of the Indian economic system. At the same clip, it had emerged as a big employer, and a argument had ensued about the possibility to nationalize the banking industry. Indira Gandhi, the- so Prime Minister of India expressed the purpose of the GOI in the one-year conference of the All India Congress Meeting. Thereafter, her move was fleet and sudden, and the GOI issued an regulation and nationalised 14 largest commercial Bankss with consequence from the midnight of July 19, 1969. A 2nd dosage of nationalisation of 6 more commercial Bankss followed in 1980. The nationalisation of Bankss boosted the development of the Indian banking sector. Nationalization resulted in 91 % of authorities keeping in the banking industry. After this, until the 1990s, the nationalised Bankss grew at a gait of around 4 % , closer to the mean growing rate of the Indian economic system.

In the early 1990s, the so Narsimha Rao authorities embarked on a policy of liberalisation, licencing a little figure of private Bankss. These came to be known as New Generation tech-savvy Bankss, and included Global Trust Bank ( the foremost of such new coevals Bankss to be set up ) , which subsequently amalgamated with Oriental Bank of Commerce, Axis Bank ( earlier as UTI Bank ) , ICICI Bank and HDFC Bank. This move, along with the rapid growing in the economic system of India, revitalized the banking sector in India, which has seen rapid growing with strong part from all the three sectors of Bankss, viz. , authorities Bankss, private Bankss and foreign Bankss.

Liberalization paved the way for private participants to take part in the industry. As a consequence, Bankss like Oriental bank of Commerce, HDFC bank, ICICI bank, and AXIS bank came into being. Foreign Bankss excessively were permitted to put up their offices in India. The rationalisation of FDI norms in 2002 besides allowed foreign participants to get bets in Indian Bankss. These Bankss implemented advanced signifiers of banking like ATMs, nomadic banking, phone banking, cyberspace banking, and debit/credit cards. The private participants invariably improved services in order to retain clients and win the terrible competition which had become a characteristic of the Indian banking industry.

Vision of Banks in India

The banking scenario in India has already gained all the impulse, with the domestic and international Bankss garnering gait. The focal point of all Bankss in India has shifted their attack to ‘cost ‘ , determined by gross subtraction net income. This means that all the resources should be used expeditiously to break the productiveness and guarantee a win-win state of affairs. To last in the long tally, it is indispensable to concentrate on cost economy. Previously, Bankss focused on the ‘revenue ‘ theoretical account which is equal to be plus net income. Post the banking reforms, Bankss shifted their attack to the ‘profit ‘ theoretical account, which meant that Bankss aimed at higher net income maximization.

Focus of Bankss in India

The banking industry is slated for growing in future with a more qualitative instead than quantitative attack. The entire assets of all scheduled commercial Bankss by end-March 2011 is projected to touch Rs 40, 90,000 crores. This is traveling to consist about 65 % of GDP at current market monetary values as compared to 67 % in 2002-03. The bank ‘s assets are estimated to turn at an one-year composite rate of growing of 13.4 % during the remainder of the decennary as against 16.7 % between 1994-95 and 2002-03.

Baring the plus side, on the liability position, there will be immense add-ons to the capital base and militias. Peoples will rely more on borrowed financess, gait of sedimentation growing decelerating down side by side. However, progresss and investings would non see a healthy growing rate.

Consolidation of Banks in India

Would the banking industry in India get opened up for more international competition? India would see a big figure of planetary Bankss commanding immense bets of the banking entities in the state. The abroad banking units would convey along with it capital, engineering, and direction accomplishments. This would take to higher competition in the banking frontier and guarantee greater efficiency. The FDI norms in the banking sector would give more purchase to the Indian Bankss.

Therefore, a consolidation stage in the banking industry in India is expected in the close hereafter with amalgamations and acquisitions garnering more gait. One might besides see amalgamations between public sector Bankss or public sector Bankss and private Bankss. Credit cards, insurance are the following best strategic topographic points where confederations can be formed.

Future challenges of Banks in India

The Indian Bankss are hopeful of going a planetary trade name as they are the major beginning of fiscal sector gross and net income growing. The fiscal services incursion in India continues to be healthy, therefore the banking industry is besides non far behind. As a consequence of this, the net income for the Indian banking industry will certainly billow in front. The net income pool of the Indian banking industry is likely to augment from US $ 4.8 billion in 2005 to US $ 20 billion in 2010 and farther to US $ 40 billion by 2015. This growing and enlargement gait would be driven by the ball of in-between category population. The addition in the figure of private Bankss, the domestic recognition market of India is estimated to turn from US $ 0.4 trillion in 2004 to US $ 23 trillion by 2050.The vision we would wish to see – Third largest banking hub of the Earth by 2040.

Major Indian Players:

Axis Bank

Bank of Rajasthan

Dhanlakshmi Bank Ltd

Industrial Development Bank

Oriental Bank of Commerce

State Bank Of Bikaner & A ; Jaipur

Allahabad Bank

Bharat Overseas Bank

Deutsche Bank India

ING Vysya Bank Ltd

Punjab and Sind Bank

Syndicate Bank India

American Express Bank Ltd

Barclays Bank PLC

Development Credit Bank

Ind Bank Housing Ltd

Punjab National Bank

SBI Commercial

Andhra Bank

Canara Bank India

Export-Import Bank Of India

Jammu and Kashmir Bank

Reserve Bank Of India

Shamrao Vithal Co-operative Bank

ABN AMRO Bank

Centurion Bank Ltd

Federal Bank India

JP Morgan Chase Bank

Ratnakar Bank

South Indian Bank

Arab Bangladesh Bank

Citibank

Global Trust Bank Ltd

Karnataka Bank

Standard Chartered Bank

Tamilnad Mercantile Bank

Bank Muscat ( S A O G )

Corporation Bank

HDFC Bank India

Karur vysya Bank Limited

State Bank Of India

The Nainital Bank Ltd.

Bank Of America

Cosmos Co-operative Bank

Hongkong Shanghai Banking

Kotak Mahindra Bank

State Bank Of Indore

Union Bank Of India

Bank Of India

Ceylon Bank

ICICI Bank Ltd

Lakshmi Vilas Bank

State Bank of Hyderabad

United Bank of India

Bank Of Baroda India

Catholic Syrian Bank

IDBI Bank Ltd

Lord Krishna Bank

State Bank of Patiala

UCO Bank

Bank of Maharashtra

DBS Bank Ltd.

Indian Overseas Bank

Mizuho Corporate Bank

State Bank of Mysore

Vijaya Bank

Bank of Punjab

Dena Bank

IndusInd Bank Ltd

North Knara G.S.B. Co-operative Bank

State Bank of Travancore

YES BANK India

An substructure for invention

SAS BI unifies describing at ICICI Bank

How make you consolidate a concern intelligence model across a web of about 950 subdivisions and 3,300 ATMs in 17 states? ICICI Bank did it by replacing its bing disparate coverage systems and implementing a individual enterprisewide model with SAS. The SAS Enterprise Intelligence Platform caters to ICICI Bank ‘s demand for flexibleness, scalability and its end to deduce a “ individual position of the client ” .

The perfect tantrum

The SAS Enterprise Intelligence Platform was an ideal tantrum in this concern scenario, as it empowers the bank with the cardinal basiss of SASA®9: manageableness, interoperability, scalability and serviceability. Specifically, ICICI ‘s IT squad acknowledged that these advantages would greatly profit the bank:

Serviceability: The SAS Web-based solution would enable ICICI to supply information entree to all users across the bank.

Scalability: Special air service can scale upward and outward to turn to a great figure of questions from many users.

Interoperability: Special air service can speak to all of the bank ‘s bing informations beginnings, natively.

Manageability: Security concerns can be addressed with the SAS Management Console that can be deployed as one point of control in puting up permissions.

BI scheme

ICICI bank was besides interested in a information integrating solution for its information warehouses and informations marketplaces. This helped broaden the range of the SAS solution with the debut of SAS Data Integration for the creative activity of marketplaces.

To turn to issues related to migration and scalability, SAS suggested a cogent evidence of construct and involved both the concern and the IT users during that of import stage. The squad of concern users and IT directors was impressed that SAS took one 3rd the clip to construct a coverage regular hexahedron compared to Cognos. Cube development clocked in with sub 2nd response times, and the full migration of the regular hexahedron took merely four hours, including understanding the transmutations and acquiring the natural informations in topographic point.

The successful cogent evidence of construct was the cardinal turning point for ICICI ‘s determination to buy SAS. The vision of consolidating the BI environment and puting up an endeavor broad concern intelligence platform had been created.

Mr. Pravir Vohra, ICICI Group Chief engineering officer justly establishes the strategic mentality of ICICI Bank. Harmonizing to Vohra, “ Adoption of SAS in ICICI Bank is in line with our scheme to consolidate our concern intelligence model and set up an enterprise broad concern intelligence platform. With the SAS Data Integration Server it will now be possible for us to incorporate our informations beginnings across the endeavor. SAS Enterprise BI Server will authorise our information users to hold entree to the needed studies through an endeavor broad coverage system. Our partnership with SAS will travel a long manner in streamlining our BI scheme. ”

Innovation = Ideation + Execution to Scale

ICICI Bank: Inventions in rural finance

By developing profitable attacks to functioning hapless rural communities, ICICI is spread outing its possible market and besides catalysing self-help groups that create powerful societal advantages.

ICICI Bank, India ‘s 2nd largest banking establishment, has discovered a big under-served market of possible customers-the 700 million largely hapless dwellers of rural India. Furthermore, ICIC considers concern schemes for accessing this market every bit critical to the hereafter of the company. The bank besides sees its attempts to develop feasible commercial theoretical accounts and distribution systems as holding an of import societal mission-that of enabling the poorest of the hapless to go active and informed participants in socio-economic procedures. In a comparatively short period, the company has established a important presence in rural India as a direct supplier of fiscal services, assisting to form village self-help groups to whose members ICICI provides micro-loans. To widen its range, the company has besides established indirect distribution channels, going a loaner to, and sometimes an investor in, some of the largest microfinance organisations in India and partnering with several ventures to offer fiscal services over their rapidly-growing webs of Internet booths.

BUSINESSMODEL

ICICI ‘s direct channel is concentrated in the province of Tamil Nadu and stems from ICICI ‘s purchase of the Bank of Madura in 2001. The Bank of Madura had been using the self-help group ( SHG ) theoretical account, organizing little groups of about 20 adult females from one small town and supplying preparation and a structured procedure that led to nest eggs, banking, and loaning activities. ICICI expanded the procedure after the amalgamation. The adult females, typically with incomes below the poorness line, get down regular monthly nest eggs that, after a clip, constitutes a fund for exigency, short-run loans within the group. At the same clip, the adult females are educated about banking constructs, and encouraged to presume more duty for their fiscal hereafters and take an involvement in small town affairs-bringing their corporate strength to bear on their household and community life. After a twelvemonth, the group can use for loans, about $ 250 to each adult female, for which the SHG is jointly responsible. Loans are so typically used to assist get down or spread out a little concern activity.

The plan under ICICI depends on the preparation and authorization of adult females, in a three-tier system. The bank recruits experienced members of SHGs to go societal service advisers, who form new self-help groups in adjacent small towns. The bank besides hires coordinators that oversee the activities of six advisers and 120 SHGs. A bank undertaking director is assigned the duty of work with the coordinators, developing the self-help groups, and reexamining loan proposals. ICICI charges 18 % involvement on its micro-loans, higher than normal commercial rates but much lower than rates charged by traditional small town money-lenders, and even lower than many non-profit microfinance establishments. Since 2001, the plan has grown to more than 8,000 self-help groups and is go oning to spread out quickly.

In add-on to working with SHGs, ICICI besides works through indirect channels to catalyse microfinance establishments by supplying them a line of recognition to cover hard currency flow demands for the first three old ages of activity. ICICI has besides made equity investings in some microfinance establishments. Additionally, ICICI has started to spouse with endeavors that are constructing webs of Internet booths in rural countries. The company plans to offer nest eggs and loan services through these webs by developing the booth operator as a recognition agent or by puting an cheap Standard atmosphere at the booths. In some cases, ICICI is supplying loans to husbandmans via endeavors such as ITC ‘s e-Choupal web or EID Parry ‘s sugar mills that enable the husbandman to purchase harvest inputs and that are paid off when the husbandman sells his harvest. The company is besides researching new fiscal merchandises, such as harvest insurance ( to protect husbandmans against drouth ) , derived functions based on harvest hereafters that could give husbandmans more fiscal flexibleness.

DEVELOPMENT BENEFIT

The self-help groups in ICICI ‘s direct service theoretical account build assurance, group solidarity, and administration accomplishments while besides transfusing the wont of regular economy. Some SHGs have become active in small town political relations, in some instances even turn overing a prohibition on widows being able to remarry, debating with local politicians on the excavation of a well, or acquiring a adult female elected as small town president. Some self-help groups have developed their ain public assistance financess that act as a sort of life insurance for group members. A survey of some 220 SHGs by the National Bank for Agriculture and Rural Development found that micro-lending had positive impact on income degrees, ego assurance, communications accomplishments, and enhanced engagement in family decision-making, and were correlated with a diminution such societal jobs as imbibing and domestic force.

KEY LESSONS

By developing profitable attacks to functioning hapless rural communities, ICICI is spread outing its possible market and developing what it sees as its engine of growing for the hereafter. But to make it successfully, it is besides catalysing self-help groups that create powerful societal advantages and partnering with both microfinance establishments and concern endeavors that are supplying fiscal and other services to rural communities. By uniting an expressed societal committedness, a focal point on invention, and an insisting on profitable concern patterns, ICICI is good positioned for a leading function in India ‘s fiscal market.

ICICI maintain making new experiments and implement advanced schemes in their twenty-four hours to twenty-four hours concern. Just few hebdomads ago, Pihu wrote about how ICICI Bank is allowing its employees play games as portion of their preparation when they ab initio join the bank.

Now ICICI Prudential Life Insurance Company has launched biometric smart cards for their rural policyholders so that they can pay their premiums. These cards fundamentally contain inside informations ( name, age, reference and fingerprints ) of a policyholders. The card will besides assist treat the claim and will be used to authorise the dealing based on the policyholder ‘s fingerprints.

The company has tied up with FINO Fintech Foundation for Operational and Processing capablenesss and fiscal information web operations ( FINO ) . SO fundamentally, policyholders can utilize their biometric cards to avail the service at assorted FINO Fintech entree points across the state. Currently they are be aftering to hold around 70 FINO points in the Andhra Pradesh. The pilot undertaking is launched in Andhra Pradesh where 100 policyholders will be given these cards.

ICICI Bank and Kingfisher Airlines Launch New Credit Card

ICICI Bank Ltd. and Kingfisher Airlines Limited have launched the ICICI Bank Kingfisher Airlines MasterCard Credit Card. The ICICI Bank Kingfisher Airlines MasterCard World Credit Card ‘s characteristics include: complimentary rank to gold grade of King Club, Kingfisher Airlines ‘ frequent circular plan ; 10,000 fillip King stat mis on connection ; three complimentary upgrade verifiers on connection ; extra complimentary ascent verifier for every 7,500 King stat mis earned on the card ; and up to 27 King stat mis for every INR 200 spent on the card.

Invention WITH OTHER PLAYERS IN INDUSTRY.

Insurance IN INDIA

Insurance, in jurisprudence and economic sciences, is a signifier of hazard direction chiefly used to fudge against the hazard of a contingent loss. Insurance is defined as the just transportation of the hazard of a possible loss, from one entity to another, in exchange for a premium.

The Insurance sector in India has gone through a figure of stages and alterations, peculiarly in the recent old ages when the Govt. of India in 1999 opened up the insurance sector by leting private companies to beg insurance and besides leting FDI up to 26 % . Ever since, the Indian insurance sector is considered as a dining market with every other planetary insurance company desiring to hold a king of beasts ‘s portion. Presently, the largest life insurance company in India is still owned by the authorities. In order to supply rigorous province control over Insurance concern many Acts of the Apostless were passed, the first being The Insurance Act, 1938. The Life Insurance in India was wholly nationalized merely on 19th January, 1956 through the Life Insurance Corporation Act, 1956. Nationalization was accomplished by the authorities acquisition of the direction of the bing insurance companies. This resulted in the formation of the Life Insurance Corporation of India on 1st September 1956 which enjoyed complete monopoly in the life insurance industry till the twelvemonth 1999.

Till terminal of 1999-2000 financial twelvemonth, two state-run insurance companies, viz. , Life Insurance Corporation ( LIC ) and General Insurance Corporation ( GIC ) were the monopoly insurance ( both life and non-life ) suppliers in India. The twelvemonth 1999 saw the entryway of private insurance companies in Indian insurance sector. The Govt. of India, so introduced the Insurance Regulatory and Development Authority Act ( IRDA ) in 1999, thereby de-regulating the insurance sector and leting private companies into the insurance. Further, foreign investing was besides allowed and capped at 26 % keeping in the Indian insurance companies.

Major participants

The private insurance joint ventures have collected the premium of Rs.1019.09 crore with the investing of merely Rs.3, 000 crore in three old ages of liberalisation. The private life insurance participants have been significantly bettering their market portion when compared to 50 old ages Old Corporation ( i.e. LIC ) . As per the figures compiled by IRDA, the Life Insurance Industry recorded a entire premium underwritten of Rs. 10,707.96 crore for the period under reappraisal. Of this, private participants contributed to Rs.1, 019.09 crore, accounting for 10 per centum. Life Insurance Corporation of India ( LIC ) , the populace sector giant, continued to take with a premium aggregation of Rs.9,688.87 crore, interpreting into a market portion of 90 per cent. In footings of figure of policies and strategies sold, private sector accounted for merely 3.77per cent as compared to 96.23 per cent portion of LIC ( The Economic Times, 21 March, 2004 ) .

The ICICI Prudential topped among the private participants in footings of premium aggregation. It recorded a market portion of 25 per cent, followed by Birla Sun Life with 15 per centum, HDFC Standard and Max New York Life with a market portion of about 15 per cent each.

In instance of private non-life insurance participants, which their market portion raised to 14.13 per cent, recorded a growing of 70.75 per cent on an one-year footing, while the market portion of public sector stood at 85.87 per cent, registering a fringy growing of 6.34 per cent. The overall market has recorded a growing of 12.32 per cent by the terminal of January 2004. Among the private non-life insurance participants, ICICI Lombard topped the list with a market portion of 3.05 per cent in one twelvemonth period and with an one-year growing rate of 131.6 per cent, followed by Bajaj Allianz with 2.91 per cent market portion and Tata AIG with 2.27 per cent market portion and with an one-year growing rate of 62.60 per cent.

Amalgamations and Acquisition

Introduction: Business combinations which may take signifiers of amalgamation, acquisitions,

merger and coup d’etats are of import characteristics of corporate structural alterations.

They have played an of import function in the fiscal and economic growing of a house.

Amalgamation is a combination of two or more companies into one company. One or more companies may unify with an bing company or they may unify to organize a new company. Laws in India use the term merger for amalgamation. For illustration, Section 2 ( 1A ) of the Income Tax Act, 1961 defines merger as the amalgamation of one or more companies with another company or the amalgamation of two or more companies ( called mixing company or companies ) to organize a new company ( called amalgamated company ) in such a manner that all assets and liabilities of the amalgamated company and stockholders keeping non less than nine-tenths in value of the portions in the mixing company or companies become stockholders of the coalesced company.

Types of Amalgamation

There are three major types of amalgamations they can be explained as follows:

1 Horizontal Amalgamation:

This is a combination of two or more houses in similar type of production,

distribution or country of concern.

2 Vertical Amalgamation:

This is a combination of two or more houses involved in different phases of production or distribution. Vertical amalgamation may take the signifier of forward or backward amalgamation.

Backward amalgamation: When a company combines with the provider of stuff, it is

called rearward amalgamation.

Forward amalgamation: When it combines with the client, it is known as frontward amalgamation.

3 Conglomerate Amalgamation:

This is a combination of houses engaged in unrelated lines of concern activity. Example is unifying of different concern like fabrication of cement merchandises, fertilisers merchandises, electronic merchandises, insurance investing and advertisingA bureaus

Advantages of Merger and Acquisitions

1 ) Maintaining or speed uping a company ‘s growing.

2 ) Enhancing profitableness, through cost decrease ensuing from economic systems of

graduated table.

3 ) Diversifying the hazard of company, peculiarly when it acquires those concern

whose income watercourses are non correlated.

4 ) Reducing revenue enhancement liability because of the proviso of setting-off accrued losingss and unabsorbed depreciation of one company against the net incomes of another.

5 ) Restricting the badness of competition by increasing the company ‘s market

power.

ICICI Bank Limited has made 14 acquisitions while taking bets in 34 companies. ICICI Bank Limited has 23 divestitures during this period.

Year

Acquisitions

Stakes

Divestitures

2010

0

2

0

2009

2

0

4

2008

0

1

1

2007

5

2

3

2006

0

1

2

2005

2

4

3

2004

1

7

1

2003

0

3

3

2002

3

0

0

2001

1

2

2

2000

0

11

2

1999

0

1

1

1998

0

0

0

1997

0

0

0

1996

0

0

0

1995

0

0

0

1994

0

0

1

Entire

14

34

23

2002A amalgamation of ICICI with ICICI Bank

2000 ICICI Bank announces amalgamation with Bank of Madura.

2001 The Boards of ICICI Ltd and ICICI Bank approved the amalgamation of ICICI with ICICI Bank

Wagess

ICICI Bank was voted as the Most Trusted Brand among private sector Bankss in the 2010 Economic Times – Brand Equity Most Trusted Brands Awards and ranked 7th in the list of Top 50 service trade names.

ICICI Bank received the 2010 World Finance UK award for:

Excellence in Remittance Business, Worldwide

Excellence in NRI Services, Worldwide

Excellence in Private Banking Business, APAC Region

ICICI Bank UK, HiSAVE has been awarded ‘Best On-line Savings Account Provider 2010 ‘ by Your Money, direct consumer awards, UK

ICICI Bank UK, HiSAVE has been commended for ‘Best Internet Account Provider 2010 ‘ and ‘Best Fixed Rate Account Provider 2010 ‘ by Moneyfacts, an independent consumer finance taking collector

Ms.Chanda Kochhar, MD & A ; CEO was awarded the Financial Express Best Banker Award

For the 6th clip in a row, ICICI Bank has received the Most Preferable Auto Loan Brand in the Financials Services class at the CNBC Consumer Awards

ICICI Bank has won Gold in the Readers Digest Trusted Brands 2010 Consumer award in the Finance class for a ) Best Bank and B ) Best Credit Card Issuing Bank

ICICI Bank won the Best Trade Finance Bank and Best Foreign Exchange Bank, India at the Finance Asia Country Awards for Achievement, Hong Kong

ICICI Bank won the Best Local Bank by Trade and Forfaiting Review, UK

ICICI Bank received the Best Trade Finance Bank in India by The Asset Triple A Award, Hong Kong

ICICI Bank was awarded the Best Trade Finance Bank in South Asia by GTR ( Global Trade Review ) , UK

ICICI Bank amongst the top 3 to have the FE- EVI Green Business Leaders Award, in the banking industry

ICICI Bank wins the Asiatic Banker Award for Best Banking Security System

ICICI Bank is the first and the lone Indian trade name to be ranked as the 45th most valuable planetary trade name by BrandZ Top 100 Global Brands Report.

ICICI Bank has been ranked 1st in the term money class, from a list of 38 taking Banks by the German magazine, Euro. Since beginning of concern two old ages ago in the German market, this is the fifth certification/award including 2 enfranchisements from Stiftung warrenttest ( for Savings and Term Deposits ) and three “ Best Bank ” rankings by Euro magazine.

Forbes ‘ 2000 most powerful listed companies ‘ study ranked ICICI Bank 4th among the Indian companies and 282nd globally.

ICICI Bank was awarded The Asiatic Banker Achievement Award 2009 for Cash Management in India.

The Economic Times-Corporate Dossier Annual Survey of India Inc ‘s Most Powerful CEOs featured Ms Chanda Kochhar, MD and CEO, as the most powerful adult females CEO in India. She was ranked 13th in the overall power list.

ICICI Group Global Private Clients ( GPC ) has won the desired ‘Euromoney Private Banking Award 2010 ‘ for Best Bank in the Super-Affluent Category ( USD 500,000 to USD 1 million ) – India. The other classs in which GPC picked up awards were:

Fixed Income Portfolio Management

Lending/Financing Solutions

Cherished Metallic elements Investing

Private Equity Investment

Specialized Services – Entrepreneurs

FX/Rates Derived functions Supplier

ICICI Bank wins the Asiatic Banker Award for Excellence in SME Banking 2009

ICICI Bank won the 2nd award in the Six Sigma Excellence Awards, conducted by Indian Statistical institute, Bangalore for “ Improving Gross saless for Television Banking concern ”

Mr.N. Vaghul, Former Chairman, ICICI Bank was awarded the “ Padma Bhushan ”

ICICI Bank Ltd, India ‘s largest private sector Bank has been awarded the Excellence in NRI services – Worldwide, Excellence in Remittance Business – Worldwide and Excellence in Private Banking Business – Asia Pacific Region awards, at the esteemed World Finance Awards, UK, 2010.

ICICI Bank has won the Private Banking and NRI services awards consecutively for three old ages andA the Remittance Business award for the 2nd twelvemonth in a row.A