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8/22/2019 1009_Comparative Analysis Icici Bank Hdfc Bank PART A
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COMPANY PROFILE
ICICI Bank is India's second-largest bank with total assets of about Rs. 1 trillion and a network
of about 540 branches and offices and over 1,000 ATMs. ICICI Bank offers a wide range of
banking products and financial services to corporate and retail customers through a variety
of delivery channels and through its specialized subsidiaries and affiliates in the areas of
investment banking, life and non-Banking , venture capital, asset management and
information technology. ICICI Bank's equity shares are listed in India on stock exchanges at
Chennai, Muzaffarnagar, Kolkata and Vadodara, the Stock Exchange, Mumbai and the
National Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are
listed on the New York Stock Exchange (NYSE).
ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution,
and was its wholly owned subsidiary. ICICI's shareholding in ICICI Bank was reduced to 46%
through a public offering of shares in India in fiscal 1998, an equity offering in the form of
ADRs listed on the NYSE in fiscal 2000, ICICI Bank's acquisition of Bank of Madura Limited in
an all-stock amalgamation in fiscal 2001, and secondary market sales by ICICI to institutional
investors in fiscal 2001 and fiscal 2002. ICICI was formed in 1955 at the initiative of the World
Bank, the Government of India and representatives of Indian industry. The principal objective
was to create a development financial institution for providing medium-term and long-term
project financing to Indian businesses. In the 1990s, ICICI transformed its business from a
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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 finances subsidiaries, ICICI Personal Financial Services Limited and
ICICI Capital Services Limited, with ICICI Bank. The merger was approved by shareholders of
ICICI and ICICI Bank in January 2002, by the High Court of Gujarat at Ahmedabad in March
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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.
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HISTORY OF COMPANY
ICICI Bank has signed an agreement to use the NCR switch mark technology for online-
networking all its ATMs, the officials said they network would come into place in September.
ICICI Bank recently restructured its organizational structure by setting up strategic business
units for retail banking, corporate banking and fore and treasury operations, as independent
profit centers.
ICICI is all set to launch a 60-second television commercial on August 15, 1999.
2000
ICICI Bank became the first Indian bank to list on the New York Stock Exchange with its $175-
million American depository shares issue generating a demand book 13 times its size at $2.2
billion.
The Bank proposes to bring credit cards to the "large, underserved population" in rural and
semi-urban areas.
SkyCell Communications Ltd, one of the two cellular service providers in Chennai, has
launched `Sky Banking', for which the company has tied up with ICICI Bank and HDFC Bank.
The ICICI has announced the launch of mobile banking services for its customers, using the
wireless application protocol (WAP) technology.
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Ford India has tied up with ICICI Bank to introduce a scheme, enabling non-resident Indians
(NRIs) to purchase a Ford Ikon car for their friends and relatives in India.
ICICI Bank has set up an ATM facility at an Indian Oil Corporation petrodiesel outlet at
Chennai.
ICICI Bank has tied up with Chennai Telephones to provide Internet bill payment facility to its
customers.
BANKING STRUCTURE
The Indian banking industry, which has Reserve Bank of India as its regulatory
authority, is a mix of the public sector, private sector, and foreign banks. The private sector
banks are again split into old banks and new banks.
SCHEDULED BANKS
Scheduled commercial banks are those that come under the purview of the Second
Schedule of Reserve Bank of India (RBI) Act, 1934. The banks that are included under this
schedule are those that satisfy the criteria laid down vide section 42 (60 of the Act). Some co-
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operative banks come under the category of scheduled commercial banks though not all co-
operative banks.
PUBLIC SECTOR BANKS
Public sector banks are those in which the Government of India or the RBI is a
majority shareholder. These banks include the State Bank of India (SBI) and its subsidiaries,
other nationalized banks, and Regional Rural Banks (RRBs). Over 70% of the aggregate
branches in India are those of the public sector banks. Some of the leading banks in this
segment include Allahabad Bank, Canara Bank, Bank of Maharashtra, Central Bank of India,
Indian Overseas Bank, State Bank of India, State Bank of Patiala, State Bank of Bikaner and
Jaipur, State Bank of Travancore, Bank of Baroda, Bank of India, Oriental Bank of Commerce,
UCO Bank, Union Bank of India, Dena Bank and Corporation Bank.
PRIVATE SECTOR BANKS
Private banks are essentially comprised of two types: the old and the new. The old
private sector banks comprise those, which were operating before Banking Nationalization
Act was passed in 1969. On account of their small size, and regional operations, these banks
were not nationalized. These banks face intense rivalry from the new private banks and the
foreign banks. The banks that are included in this segment include: Bank of Madura Ltd. (now
a part of ICICI Bank), Bharat Overseas Bank Ltd., Bank of Rajasthan, Karnataka Bank Ltd.,
Lord Krishna Bank Ltd., The Catholic Syrian Bank Ltd., The Dhanalakshmi Bank Ltd., The
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Federal Bank Ltd., The Jammu & Kashmir Bank Ltd., The Karur Vysya Bank Ltd., The Lakshmi
Vilas Bank Ltd., The Nedungadi Bank Ltd. and Vysya Bank. The new private sector banks were
established when the Banking Regulation Act was amended in 1993. Financial institutions
promoted several of these banks. After the initial licenses, the RBI has granted no more
licenses. These banks are gearing up to face the foreign banks by focusing on service and
technology. Currently, these banks are on an expansion spree, spreading into semi-urban
areas and satellite towns. The leading banks that are included in this segment include Bank of
Punjab Ltd., Centurion Bank Ltd., Global Trust Bank Ltd., HDFC Bank Ltd., ICICI Banking
Corporation Ltd., IDBI Bank Ltd., IndusInd Bank Ltd. and UTI Bank Ltd.
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FOREIGN BANKS
The operations of foreign banks, though similar to that of other commercial Indian
banks, are mainly confined to metropolitan areas. Foray of foreign banks depends on
reciprocity, economic and political bilateral relations. An inter-departmental committee has
been set up to endorse applications for entry and expansion. Foreign banks, in the wake of
the liberalization era, are looking to expand and diversify. Some of the leading foreign banks
that operate in India are Citibank, Standard Chartered Grindlays Bank, Hong Kong Shanghai
Banking Corporation, Bank of America, Deutsche Bank, Development Bank of Singapore and
Banque National De Paris.
PUBLI C SECTOR BANKI NGAT A DISADVANTAGE
Functioning of Public Sector Banks (PSBs), which are yet to achieve computerization
across the board, is at a relative disadvantage when compared to the private sector, which is
offering state-of-the-art facilities such as ATMs, doorstep banking, banking on phone, and
net banking. PSBs also suffer from huge costs of labor and low levels of automation. At this
rate, it may not be long before new channels devised by private banks effectively surpass the
number of branch networks offered by the PSBs.
This apart, the problems which have assumed enormous proportion today as far as
Public Sector banks are concerned are ballooning NPA levels, declining margins, poor credit
off-take, high overheads, and lack of good quality assets. Banks are sticking to reliable
borrowers for fear of bad debts. In fact, banks largely invest in government securities, which
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have zero risk. With GOI being the single largest borrower, the yields on these securities
determine the interest rates.
The government aims to decrease its shareholding in PSBs to 33%, however, at the
same time it also wants to retain the controlling stake. This, it is feared, is not going to solve
the problems which PSBs are coping with now.
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PRIVATE SECTOR BLOOMS
Corporate governance and self-regulation are the ground rules for the private sector.
Government interference is not preferred. While some private banks such as ICICI Bank, UTI
Bank and IDBI Bank have financial institutions backing them, others are opting for foreign
partnerships for technology and monetary resources.
Private banks have emerged relatively strong, with about 60% growth reported in net
profits in the year ended March 2000. With a net profit of Rs.120 crores (+46%), HDFC was
the clear leader. IDBI Bank, however took the cake by doubling its net profit, which reached
Rs.60.99 crores in March 2000.The jump in profits can mainly be attributed to non-traditional
sectors such as commission, exchange, brokerage, and profit on sale of investments.
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PRODUCT PORTFOLIO
CORPORATE BANKING RETAIL BANKING
Corporate Solutions Home Loans
Government Solutions Car & Two Wheeler Loans
Capital Market Services Consumer/Personal Loans
Agriculture Finance Saving & Term Deposit
Structured Finance Salary Account
Project Finance Roaming Current Accounts
Infrastructure Finance Investment Products
Term Loans Private Banking
Working Capital Finance NRI Services
Cash Management Services Demat Services
Trade Finance Services Credit & Debit Cards
International Banking Smart Cards
Treasury Services Bill Payment Services
Corporate Internet Banking E-Cheques
Corporate Advisory Branches
Custodial Services ATMs
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Professional Clearing Internet Banking
Membership Services Phone Banking
PROMOTION
What's on offer
Hello ICICI and HDFC brings you a host of services at your fingertips 365 days a year. A user
friendly automated service menu offers you convenient access to your account coupled with
security as, all your transactions are protected by a TPIN - The Personal password to your
account. But if you do need any assistance our officers will be glad to help you.
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Whats more... this facility comes to you totally free of charge! Some of the services offered
are listed below
Savings account :
o Balance Enquiry Statement of account
o Cheque status enquiry Stop Payment
o Cheque book request
o Dial-a- draft/payorder
o ATM lost card reporting
o Request for a new ATM PIN
Fixed Deposits:
o Opening a Fixed Deposit
o Checking Fixed Deposit details
o Request for TDS statement
Credit Cards:
o Balance and account related inquiries Statement of account
o Dial a draft/payorder
o Lost/Replacement card
o ATM pin re-issue
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o Payment instructions (maybe through a letter to the Call Centre)
Others:
o Standing Instructionso Complaints and suggestions
o Inquire about any ICICI retail product
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RISK MANAGEMENT
Risk is an integral part of the banking business and ICICI Bank aims at the delivery of
superior shareholder value by achieving an appropriate trade-off between risk and returns.
ICICI Bank is exposed to various risks, including credit risk, market risk and operational risk.
Our risk management strategy is based on a clear understanding of various risks, disciplined
risk-assessment and measurement procedures and continuous monitoring. The policies and
procedures established for this purpose are continuously benchmarked with international best
practices. A comprehensive range of quantitative and modelling tools developed by a
dedicated risk analytics team supports the risk management function at ICICI Bank.
The Risk, Compliance & Audit Group (RCAG) is responsible for assessment,
management and mitigation of risk in ICICI Bank. This group, forming a part of the
Corporate Centre, is completely independent of all business operations and accountable to
the Risk and Audit Committees of the Board of Directors. RCAG is organised into six sub-
groups: Credit Risk Management Group, Market Risk Group, Credit Policies Group, Internet
Audit Group, Retail Risk Group and Risk Analytics Group.
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CREDI T RISK
Credit risk is the risk that a borrower is unable to meet its financial obligations to the lender.
ICICI Bank measures, monitors and manasgers credit risk for each borrower asnd also at the
portfolio level. ICICI Bank has a standardised credit approval process, which includes a well-
established procedure of comprehensive credit appraisal and rating. ICICI Bank has
developed internal credit rating methodologies for rating obligors as well as for rating. ICICI
Bank has developed internal credit rating methodologies for rating obligors as well as for
product / facilities. The rating factors in quantitative and qualitative issues and credit
enhancement features specific to the transaction. The rating serves as a key input in the
sanction as well as post-sanction credit processes. Credit rating, a as concept, has been well
internalised within the Bank. The rating for every borrower is reviewed as least annually and
for higher risks credits and large exposures at shorter intervals. Sector knowledge has been
institutionalized across ICICI Bank through the availability of sector-specific information on
the Intranet. Industry knowledge is constantly updated through field visits, interactions with
clients, regulatory bodies and industry experts. In respect of the retail credit business, ICICI
Bank has a system of centralized approval of all products and policies and monitoring of the
retail portfolio. We continuously refine our retail credit parameters based on portfolio
analytics.
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MARKET RISK
Market risk is the risk of loss resulting from changes in interest rates, foreign currency
exchange rates, equity prices and commodity prices. HDFC Banks exposure to market risk a
function of its trading and asset and liability management activities and its role as a financial
intermediary in customer-related transactions. The objective of market risk management is
to minimize the impact of losses due to market risks on earning and equity capital.
Market risk policies include Asset-Liability Management (ALM) policies and policies for
the trading portfolio. The Asset-Liability Management Committee (ALCO) of Board of
Directors approves ALM policies. ALCOs role encompasses stipulating liquidity and interest-
rate risk limits, monitoring risk levels by adherence to set limits, articulating the
organizations interest rate view and determining business strategy in the light of the current
and expected business environment. These sets of policies and processes are articulated in
ALM policy. A separate set of policies for the trading portfolio address issues related to
investments in various trading products and are approved by the Committee of Directors
(COD) of the Board. RCAG exercises independent control over the process of market-risk
management and recommends changes in processes and methodologies for measuring
market risk.
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MIDDLE OFFICE GROUP
HDFC Bank has a separate Middle Office Group to monitor both credit and treasury-
related compliance. The Credit Middle Group monitors compliance with policies and terms of
sanction of credit proposals.
The Treasury Middle Office Group monitors the asset-liability position under the
supervision of the ALCO. It also monitors treasury activities, including determining
compliance with various exposure and dealing limits, verifying the appropriateness and
accuracy of various transactions, processing these transactions, tracking the daily funds
position and all treasury related management and regulatory reporting.
Interest rate risk is measured through the use of re-pricing gap analysis. Liquidity risk
is measured through gap analysis. HDFC Bank ensures adequate liquidity at all times
through systematic funds maintenance of liquid investment as well as by focusing on more
stables funding sources such as retail deposits. HDFC Bank mitigates its exposure to
exchange rate risk by stipulating daily stop-loss limits and position limits.
OPERATIONAL RISK
Operational risk can result from a variety of factors, including failure to obtain proper
internal authorization, improperly documented transactions, failure of operational and
information security procedures, computer systems and software or equipment, fraud,
inadequate training and employee errors. We attempt operational risk by maintaining a
comprehensive system of internal controls, establishing systems and procedures to monitors
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transactions, maintaining key back-up procedures and undertaking regular contingency
planning. The Middle Office Group monitors adherence to credit procedures. The
International Audit Group undertakes a comprehensive audit of all business group and other
functions, in accordance with a risk-based audit plan. This plan allocates audit resources
based on an assessment of the operational risks in the various businesses. ICICI Bank has
been a pioneer in the implementation of a risk-based audit methodology in the Indian
banking sector. The International Audit Group conceptualizes and implements improved
system of internal controls to minimize operational risk.
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FUTURE PROSPECTS OF ICICI AND HDFC
BANK
Future expectations
We soon plan to introduce:
payment services to certain standard utilities
Demat-related information
own accounts funds transfer
ICICI will also use WAP technology for undertaking on-line transactions
If you have an HDFC Phone Banking Relationship Number (under which your
accounts are linked to the HDFC Call Centre for HDFC Phone Banking), the same accounts
will be linked for Mobile Commerce. If you do not have an HDFC Phone Banking
Relationship Number, you can specify the account number(s) and your HDFC Credit Card
Number to be linked for SMS.
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ICICI BANK NAMES CONSULTANT FOR
GOVT BUSINESS
ICICI Bank has appointed international consultancy major monitor
group to help the bank in identification of business prospects in the
government sector which has recently been identifies as a focus area.
Monitor will help ICICI get business from the government sector,
particularly the infrastructure sector mandates. The bank did not consider
government business a focus area till sometime back. Now, Monitor Group
will study investment prospect of tourism in Rajasthan, opportunities for
the government of Andhra Pradesh and investment prospects for the bank
through the government in cities such as Pune and Kolkata.
We are trying to find out how ICICI Bank can be a partner to the
government in development plans and projects. The bank has initiated
fresh focus towards the government which is a major source of business
and we would like to increase relatio nship with government agencies,
ICICI officials said.
Monitor Group will find out ways and means for ICICI Bank through
which the latter Can solve government fund flow problems and how ICICI
Bank can play a role in the projects, bank officials said.
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This is a test study and if there is a positive response from the
government then more such specific developmental studies will be taken
up by the bank as partners to development.
-ECONOMICS TIMES.
1/11/03ICICI Bank clocks 110% growth in retail portfolio in Q2
Mumbai: The retail portfolio of ICICI Bank grew by 110 per cent to Rs 25,205 crore (Rs 12,021
crore) in the second quarter. Retail assets constituted 39 per cent of the bank's customer
assets. While leveraging and enhancing its position as the original lender, the bank also
continued to focus on securitisation of its customer assets. This had enabled the bank to
optimize resources and capital utilization and diversify the composition of its asset portfolio.
During the first half of this financial year, the total sell down and securitisation of assets was
around Rs 5,300 crore. According to the bank, its net restructured loans declined to Rs 7,856
crore (Rs 10,491 crore). Net NPAs were at Rs 3,128 crore, constituting 4.8 per cent of its
customer assets. Deposits grew by 18 per cent to Rs 56,880 crore (Rs 48,169 crore). As on
September 30, 2006, the deposits constituted 58 per cent of the bank's funding against 42
per cent in the corresponding period of the previous year. The capital adequacy as on
September 30, 2006 was at 11.5 per cent.
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ACCOUNTS IN ICICI BANK
ICICI Bank offers wide variety of Deposit Products to suit your requirements.Coupled
with convenience of networked branches/ ATMs and facility of E-channels like Internet and
Mobile Banking, ICICI Bank brings banking at your doorstep. Select any of our deposit
products and provide your details online and our representative will contact you for Account
Opening.
ICICI Bank offers you a power packed Savings Account with a host of convenient features and
banking channels to transact through. So now you can bank at your convenience, without the
stress of waiting in queues.
Senior Citizen Services
We understand that as you reach the age to retire, you do have certain concerns whether
your hard earned money is safe and secure whether your investments give you the kind of
returns that you need. That's why we have an ideal Banking Service for those who are 60
http://www.icicibank.com/pfsuser/icicibank/depositproducts/seniorcitizen/seniorcitizen.htmhttp://www.icicibank.com/Pfsuser/icicibank/depositproducts/savingaccount/savingaccount.htmhttp://www.icicibank.com/pfsuser/icicibank/depositproducts/seniorcitizen/seniorcitizen.htmhttp://www.icicibank.com/Pfsuser/icicibank/depositproducts/savingaccount/savingaccount.htm8/22/2019 1009_Comparative Analysis Icici Bank Hdfc Bank PART A
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years and above. The Senior Citizen Services from ICICI Bank has several advantages that are
tailored to bring more convenience and enjoyment in your life.
Young Stars
It's really important to help children learn the value of finances and money management at
an early age. Banking is a serious business, but we make banking a pleasure and at the same
time children learn how to manage their personal finances.
Fixed Deposits
Safety, Flexibility, Liquidity and Returns!!!! A combination of unbeatable features of the Fixed
Deposit from ICICI Bank.
When expenses are high, you may not have adequate funds to make big investments. But
simply going ahead without saving for the future is not an option for you. Through ICICI Bank
http://www.icicibank.com/Pfsuser/icicibank/depositproducts/recurringdeposits/recurring.htmhttp://www.icicibank.com/Pfsuser/icicibank/depositproducts/fixeddeposits/fixeddeposits.htmhttp://www.icicibank.com/pfsuser/icicibank/depositproducts/kid-e-bank/kid-e-bank.htmhttp://www.icicibank.com/Pfsuser/icicibank/depositproducts/recurringdeposits/recurring.htmhttp://www.icicibank.com/Pfsuser/icicibank/depositproducts/fixeddeposits/fixeddeposits.htmhttp://www.icicibank.com/pfsuser/icicibank/depositproducts/kid-e-bank/kid-e-bank.htmhttp://www.icicibank.com/Pfsuser/icicibank/depositproducts/recurringdeposits/recurring.htmhttp://www.icicibank.com/Pfsuser/icicibank/depositproducts/fixeddeposits/fixeddeposits.htmhttp://www.icicibank.com/pfsuser/icicibank/depositproducts/kid-e-bank/kid-e-bank.htm8/22/2019 1009_Comparative Analysis Icici Bank Hdfc Bank PART A
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Recurring Deposit you can invest small amounts of money every month that ends up with a
large saving on maturity. So you enjoy twin advantages- affordability and higher earnings.
DOCUMENTATION
Applicants must satisfy the following documentation requirements:
Identity proof
Proof of communication address
Self cheque (if the applicant is not visiting the branch for account opening)
Identity Proof
(Any one of the following)
Proof of communication address
(Any one of the following)
Original letter of introduction from existing bank
along with KYC cheque of the same Bank
Introduction by an existing and satisfactory
customer as address proof
Driving License Book type or laminated &
embossed
Latest Electricity Bill
Voter Identity Card with KYC cheque for operating
accounts.
Cash can be accepted for Term deposits.
Certificate from the postal office confirming
address of applicant
Employee Identity Card Original Letter from Employer certifying the
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residential address of applicant. Signature
of the employee has to be attested on the
letter.
PAN Card Telephone bills from any telephone service
providers and mobile service providers (KYC
cheque mandatory for mobile service
providers)
Defence Dependent's card Consumer gas connection card/book/Pipe
Gas bill (same as electricity bill)
Ex-Service Man Card Certificate from the ward/equivalent rank
officer, maintaining election roll, certifying
address of the applicant
Bar Council/Indian Medical Association
Card/Senior Citizen Card
Registered and valid Lease/ Leave
agreement with copies of utility bills
PIO Booklet for returning NRIs Post Office Savings Pass Book with KYC
cheque
MAPIN card Statement of account or Pass Book of a
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scheduled commercial bank with entries of
at least last 3 months alongwith KYC cheque
Premium Receipt from any Banking
company
Certificate by Village Extension Officer
(VEO)/Village Head or equal rank officers
Domicile Certificate with communication
address and photograph
Accepted as both Identity and Address proof
(Any one of the following)
Passport
Arms License issued by State/Central Government of India authorities
Freedom fighter's pass issued by Ministry of Home affairs, Government of India with photograph
of applicant
Pension payment order/book/Card issued by State/Central Government of India.
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Printed Ration Card with Photograph of applicant.
House hold Card with photograph issued by Govt of Andhra Pradesh
ID card with photograph issued by Govt of Jammu and Kashmir
Bank Pass Book with photograph issued by SBI and its subsidiaries or Nationalised Banks
Photo Social Security Card (Smart Card) issued by Central/State Govts or Union territories.
Savings Bank Account: 3.50%
Domestic term deposits(General Category) :
* Subject to revision without further notice.
** Recurring Deposit will not be available for tenure of 390 days.
Note: Rates for Deposits for Rs.1 Crore and above will be advised by treasury from time to
time.
INTEREST RATES FOR SENIOR CITIZENS:
1. Eligibility Criteria
A person who has completed the age of 60 years may be treated as a senior citizen for
getting the benefit under the special deposit scheme for senior citizens.
2. Verification of Age:
Opening of New Account
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At the time of opening of a new deposit account of a senior citizen, the branch should satisfy
about the age through verification of any of the following documents:-
Secondary School Leaving Certificate indicating date of Birth
LIC Policy
Voters Identity Card
Pension Payment Order
Birth Certificate issued by the competent authority
Passport
PANCard
Interest Rates for Senior Citizens :
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*Subject to revision without further notice.
** Recurring Deposit will not be available for tenure of 390 days.
Penalty on Pre-mature withdrawal (All Categories) would be applicable as below:
Features
The ICICI Bank Ncash debit card is a debit-cum-ATM card providing you with theconvenience of acceptance at merchant establishments and cash withdrawals at
ATMs.Click here for details
Free Access to any Bank's ATM The next time you want to withdraw cash from yourICICI Bank account, just walk into any bank's ATM and use your ICICI Bank ATM-cum-
Debit card for as many as 9 free transactions (including cash withdrawal and balance
enquiry) in a quarter. This offer is available to customers who maintain more than
Rs.25,000 in a given quarter in their domestic Savings Account with ICICI Bank. The
above benefit can be availed in the next quarter.
Anywhere Banking - This facility entitles the account holder to withdraw or depositcash upto a limit of Rs.50,000 across all ICICI Bank branches.
You can give us various types of standing instructions like transferring to fixed depositaccounts at regular intervals.
An average quarterly balance of Rs 5,000 only.
Minimum Balance
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Type of Account Balance
Savings Account Rs 5,200
Non-maintenance of the minimum average quarterly balance attracts a fee of Rs 750
per quarter.
Nomination
The facility of Nomination is available for relationships in the names of individuals.Unless otherwise specifically, given in writing by depositors, nomination in deposit
accounts will be at Customer ID level
A depositor(s) however has / have the right to specify different nominations ataccount level by completing the appropriate forms.
Further, the applicant(s) is / are at liberty to change the nominee during the currency
of the relationship accounts with the Bank through declaration to that effect in the
appropriate form
A. Repatriable
Repatriable funds (i.e. those which can be taken abroad) need to be kept in a separate bank
account, i.e. NRE Bank account. Typically, funds brought in from abroad are permitted in such
an account. Investments made from such funds can be repatriated, i.e. proceeds from sale or
otherwise from such investments can be taken abroad. Such investments are maintained in a
Repatriable Demat account.
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B. Non-repatriable
Non-repatriable funds (i.e. those which cannot be taken abroad) need to be kept separate
from repatriable funds in a separate bank account i.e. NRO Bank account. Investments made
from such funds cannot be repatriated, i.e. proceeds from sale or otherwise from such
investments cannot be taken abroad. Such investments are maintained in a Non-Repatriable
Demat account. Money once transferred from NRE account to NRO account loses its
repatriability and hence, cannot be transferred back to NRE account.
Mode of Investment :
A. Portfolio Investment Scheme (PINS)
Portfolio Investment Scheme (PINS) is a scheme of the Reserve Bank of India (RBI) under
which the 'Non Resident Indians (NRIs)' and 'Person of Indian Origin (PIOs )' can purchase and
sell shares and convertible debentures of Indian Companies on a recognized stock exchange
in India by routing all such purchase/sale transactions through their account held with a
Designated Bank Branch . The Designated Bank maintains a record of all investments done
under PINS (PINS portfolio).
B. Non - PINS
Any investment other than under PINS is Typically, this includes:
1. Subscription to Primary market offerings (IPOs)
2. Investments made when resident in India.
3. Investments in Mutual funds
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4. Investments in derivatives
5. Gifts and Inheritance
Deciding Combination :
You may have to open demat accounts of a specific combination if you already hold physical
shares in that combination. The physical shares can be converted into electronic form in your
demat account by submitting the certificates along with a demat request form. You should
also open the required combination under the correct type of demat account :
PINS NRE : For shares acquired earlier under PINS on repatriation basis.
PINS NRO : For shares acquired earlier under PINS on non-repatriation basis.
Non-PINS NRE : For shares acquired earlier other than under PINS on repatriation basis.
Non-PINS NRO : For shares acquired earlier other than under PINS on non-repatriation basis
and also when 'Resident' in India.
I. Terms & Conditions for establishing relationship and Operating Accounts (For Resident
Individuals)
1. Establishing a Relationship
1.1 Applicant(s) desiring to open a Relationship need(s) to sign a Relationship form and
declare therein that he/she/they has/have agreed to abide by the rules which are in force
from time to time.
1.2 Applicant is required to furnish Identity Proof and Address proof as follows while
establishing a banking relationship with the Bank :
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IdentityProof
Verified true copy of valid passport
Letter from existing bank
Valid driving license
Valid employee identity card
Valid PAN card
Valid photo credit card along with the current billing cycle (latest) statement
True copy of valid arms license issued by Govt of India/State govts/Union territory with
photograph
Valid pension book
Valid freedom fighter's pass issued Home Ministry of Government of India
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MAJORMAJOR COMPETITORS
STATE BANK OF INDIA
It is India's largest bank with assets worth Rs.2, 615 billion. SBI also has the distinction of
having the worlds largest branch network of 9,000 branches. The bank has a share of about
22% of India's loans and deposits, and is a top player in trade finance and forex. Through its
subsidiaries, SBI is also a leading provider of other financial products like mutual funds,
investment banking, housing finance and factoring. SBI has a market share of one-fifth of the
banking sector in India. Nationalized banks and SBI and its subsidiaries form the heart of the
Indian banking system. These two entities operate 70% of the total branches spread across
the length and breadth of India.
BANK OF INDIA
As one of the leading public sector Indian banks, Bank of India has the distinction of being the
first bank to open a branch outside India. The bank, which currently has overseas operations
in about 10 countries, is one of the leaders in financing foreign trade. It is one of the few
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Indian banks that provide tele-banking facilities, Remote Access Terminals for corporate
clients, and Signature Retrieval System. Some of the recent forays made by the bank in terms
of its business operations include bullion business and demat services.
It is a pioneer in terms of the introduction and adoption of a model banking policy that suits
India and other developing countries. The bank, which is synonymous with progressive
banking in India, has a strong presence in rural India. The bank was nationalized in 1969.
Syndicate Bank has correspondent relations with 400 banks from all over the globe. The bank
is also one of the leading players in the foreign exchange market.
Citibank, idbi, hdfc,hsbc
CHALLENGE FOR THE INDIAN BANKING SECTOR
Indian banks have a long way to go before they reach the size of their international
counterparts. Even the biggest Indian bank, State Bank of India, is nowhere on the
international scale, with assets in the range of $50billion. Absence of significant scale
benefits and higher implicit costs of several services are perpetuating the poor ranking of
Indian banks in the international league tables.
Shareholding structure, government regulations and sheer size of the country ensure that the
existence of Indian banks is not at stake at this stage. What is at stake is the banking support
that is available for Indian economic activity, and thereby the international competitiveness
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of various sectors. What is also at stake is the scope for the banking industry to earn superior
returns through differentiated wider services.
Further, it is quite conceivable that with passage of time, as government holding in banks is
progressively divested, regulatory authorities will be unable to hold back the international
giants from buying out Indian banks. Even economies with a "domestic mindset", such as
France and Germany, have been forced to bow before the international capital market forces.
It would be a shame if painstakingly built retail strength is offered on a platter to some
predator. The challenge can be met through some concerted action -
Government
The Government needs to do away with artificial fragmentation of the
financial sector. A case in point is the segregation of banks and financial institutions
induced by policy. If this is changed, we may well see mergers between the two
sectors to create organizations of size. Why not a merger of Industrial Development
Bank of India with Bank of Baroda, or even better with State Bank of India? This
would definitely lead to a merger between ICICI and ICICI Bank and for that matter
between HDFC and HDFC Bank. The possibilities are interesting and numerous.
Domestic Banks
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Domestic Banks - private as well as public - need to continuously explore options to
acquire or merge with other institutions to enhance their size, service or skill-set. This
could also mean looking beyond the national boundaries as truly global corporations
do.
New Initiatives
The recent crisis in the Far East has demonstrated the need for a robust
banking sector. Therefore the whole structure of Regional Rural Banks (RRBs) and
Urban Co-operative Banks (UCBs) needs to be strengthened. The focus that FMCG
companies such as Hindustan Lever have given to the rural sector proves that private
sector interest is not limited to the cities and major towns. Technological changes
(such as wireless communication, net etc.) have drastically changed the
communications scenario. This may be the time to come out with interesting
initiatives with regard to structure of RRBs and UCBs so that private sector
organizations - banks as well as non-banks - play a greater role in meeting the needs
and aspirations of hitherto neglected parts of the country.
Social considerations
The full benefit of mergers can only be realized if they are followed up with some hard
measures such as re-location / closure of branches, rationalization of employee strength etc.
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It would be a welcome change if the management and unions collaborate in seeking
appropriate social security from the Government - financed out of the divestment of stake in
these banks.
Indian banking has to operate with a global mindset even while fulfilling local banking
requirements. By joining in the effort to make this happen, we will get the banking service we
need. Else, we will deserve the banking service we get.