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INTRODUCTION TO INDIAN FINANCIAL MARKETS

A financial market is an organized trading platform for exchanging financial instruments under a regulated framework The participants of the financial markets are borrowers (issuers of financial instruments or securities), lenders (investors or buyers of financial instruments) and financial intermediaries that facilitate investment in financial instruments or securities. The financial markets comprise two markets– (A) Money markets, which are regulated by the Reserve Bank of India (RBI) and (B) Capital markets, which are regulated by the Securities Exchange Board of India (SEBI) and.

Financial Markets (A) Money MarketsMoney markets is “… the collective name given to the various firms and institutions that deal in the various grades in near money” The definition implies that the money market caters to short-term demand and supply of funds. The major participants of the money market are as follows:Lenders: Lenders include the regulator RBI, commercial banks and brokers. These participants facilitate the expansion or contraction of money in the marketBorrowers: Borrowers include commercial banks, stock brokers, other financial institutions, businesses houses and governments provide financial instruments to other investors depending upon the money borrowed from lendersAccordingly, the characteristics of money market include the following:Short-term – The instruments in the money market have maturities mostly less than a year and cater to short-term demand and supply of funds.

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Highly liquid – The money market is considered highly liquid wherein securities (financial instruments) are purchased and sold in large denominations to reduce transaction costs[4] (because they are a close substitute to cash)[5]. The market distributes and redistributes cash balances in accordance to the liquidity needs of the participantsSafe – The instruments are considered safe with RBI playing a pivotal role in monitoring regulating and managing monetary requirements of all participants.Lower returns – The transactions are on a same-day-basis and the returns on these investments accordingly, are low.Institutional investors – Retail or individuals investors cannot directly participate in money markets. The money market mainly caters to institutional investors who require instant cash for running their operations in the financial system. However, retail or individual investors indirectly participate in money markets by lending money to institutions (large corporations and government) through bonds to gain high returns.Monetary policy – The money markets are governed and influenced by changes in the monetary policy. For example, changes in interest rates announced by RBI play a critical role in determining liquidity requirements in the overall financial systemInterrelated sub-markets – The money market consists of the following interrelated markets[6]:Call money marketCommercial bill or ‘Bill’ marketTreasury bill marketCommercial Paper (CP) marketCertificates of Deposits (CD) marketEach and every abovementioned sub-market is characterised with different money market instruments with different maturities offered in mostly different trading platforms and cater to different borrowers/ lenders with the objective of maintainingdifferent liquidity requirements. For example, in the call money market, banks borrow call money / notice money from other banks and non-banks to maintain CRR[7]requirements[8]. The exchange occurs in Over-the-Counter (OTC) market (without brokers) and the maturity period of call money instruments vary between one day and a fortnight.(B) Capital MarketsCapital market is an organized mechanism for effective and smooth transfer of long-term capital money or financial resources from borrowers (corporates / government) to lenders. This market enables channelizing of savings from investors to raise productive capital for borrowers, which in turn provides higher returns to investors for their investments through relevant profits.The securities or issues or instruments in capital markets include equity and debt securities. Capital markets (equity and corporate debt) in India are predominantly regulated by the SEBI. However, government securities (in the debt market) are regulated by the RBI. Based on the aforementioned description, following are some characteristics identified for the capital markets:Primary and secondary securities – To raise productive capital, lenders issue and/or trade financial securities (instruments) through primary and secondary markets. Primary markets deal with issuance of new capital (or financial securities), whereas the secondary market (or stock market) deals with buying and selling of already existing securities that are listed on the stock

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exchanges Primary and secondary markets are inter-dependent and important for creation of long-term funds in the capital markets. For the new issues or securities introduced and sold by the lenders in the primary markets, the proceeds of the same go directly to the lenders (to raise capital). These proceeds are however, dependent upon favourable macroeconomic conditions of an economy. Subsequently, these issues are traded in the secondary market (or stock exchanges) that also provide the basis for determining possible prices of primary issues. Thus, depth and performance of the secondary markets depends upon the new issues / securities in the primary markets because the larger number of new securities issued in primary markets lead to availability of larger number of instruments for trading in secondary markets. Thus, the primary markets facilitate liquidity in the secondary markets further leading capital formation. The secondary market can also divert funds to the primary market for new issues of large size and bunching of large issues also affecting the stock prices. Lenders can raise its capital in primary markets either through any of the following – public issue, rights issue, bonus issue and private placement (Private placement is securities to sold to few select investors like large banks, insurance companies, mutual fund companies, etc). The interrelationship between primary and secondary markets lead to provision of long-term securities to raise capital.Risk-returns – Capital markets are characterised with equity and debt instruments that allow diversification of risks between high-risk equity instruments and low-risk debt instruments. Nevertheless, capital markets are considered as high-risk markets in comparison to money markets.Low-information and transaction costs – The capital markets are mostly transparent and information about the trends in the market is available and accessible in comparison to money markets. Also, due to ease in availability and accessibility of long-term securities, transaction costs are comparatively lower than money markets. For example, retail investors can invest in stock markets through a dematerialised account provided by banks.Retail & institutional – The capital markets is an inclusive market that enables all kinds of investors to invest and gain higher returns. The investors include – individual or retail investors, small-medium-large businesses, financial or non-financial institutions and governmentCapital allocation – Capital markets are a medium of efficiently allocating capital in the system through a competitive pricing mechanism

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(C) Linkages between money and capital marketsThere are significant linkages between money and capital markets and are discussed as followsInvolvement of financial institutions (and regulators) exists in both the markets. Financial institutions act as intermediaries and facilitators of short-term and long-term liquidity requirements of all kinds of investors (individual, corporations and governments)Capital and money markets involve trading of a variety of financial instruments for a specific time period and investors depending upon the nature of investment and risks further leading to risk diversificationShort-term funds raised in the money market are used to provide liquidity for long-term investments and redemption of funds raised in the capital marketFor the development of financial markets, development of money markets generally precedes the development of capital marketCharacteristics of financial markets

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Financial MarketsThe description of capital and money markets leads to understanding the following characteristics of financial markets:Financial markets enable large volume of transactions and mobilize financial (short-term and long-term) resources at real-time basis through investments in stocks, bonds and moneyFinancial markets generate a scope of arbitrage across different markets. This implies, that investors can take advantage of price differences across different markets and diversify risksFinancial markets are characterised with volatility directed by trade of large volume of securities. Mostly, these markets are influenced by macroeconomic and political changes in India and the worldMarkets are dominated by financial intermediaries who take investment decisions as well as risks on behalf of depositors (savers)Financial markets are also characterised by externalities. An externality refers to cost or benefit that are not transmitted by prices but influenced by a stakeholder’s actions in the financial markets leading to market failures. For example, speculation in prices of stock markets could affect the workings of the money marketDomestic financial markets are also becoming integrated with global financial markets that not only enables capital mobility at a global level but spread of risks across the globe FINANCIAL SYSTEM & THE ECONOMYAn economy consists of two kinds of economic structures that encompasses the financial system – Savings structure and Borrowing Structure

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Savings structureThe savings structure in an economy consists of savers or entities that save in the form of financial assets (deposits, life insurance, etc) or cash balances. Savings can be estimated as the remainder or surplus from incomes earned after expenditures (food, rent, home supplies, etc). This surplus or savings can be directed in the form of financial assets or withheld as cash.Savers or entities that save can be further categorised into the following:Household sector – The household sector include individuals, unincorporated businesses, farm production units and non-profit businesses. Savings for the household sector is mostly in financial such as includes deposits, life insurance, shares & debentures, provident and pension fund, loans for durables and real estate.

Savings Structure: Household Sector

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ICICI bank

ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution, and was its wholly-owned subsidiary. ICICI's shareholding in ICICI Bank was reduced to 46% through a public offering of shares in India in fiscal 1998, an equity offering in the form of ADRs listed on the NYSE in fiscal 2000, ICICI Bank's acquisition of Bank of Madura Limited in an all-stock amalgamation in fiscal 2001, and secondary market sales by ICICI to institutional investors in fiscal 2001 and fiscal 2002. ICICI was formed in 1955 at the initiative of the World Bank, the Government of India and representatives of Indian industry. The principal objective was to create a development financial institution for providing medium-term and long-term project financing to Indian businesses. In the 1990s, ICICI transformed its business from a development financial institution offering only project finance to a diversified financial services group offering a wide variety of products and services, both directly and through a number of subsidiaries and affiliates like ICICI Bank. In 1999, ICICI become the first Indian company and the first bank or financial institution from non-Japan Asia to be listed on the NYSE. After consideration of various corporate structuring alternatives in the context of the emerging competitive scenario in the Indian banking industry, and the move towards universal banking, the managements of ICICI and ICICI Bank formed the view that the merger of ICICI with ICICI Bank would be the optimal strategic alternative for both entities, and would create the optimal legal structure for the ICICI group's universal banking strategy. The merger would enhance value for ICICI shareholders through the merged entity's access to low-cost deposits, greater opportunities for earning fee-based income and the ability to participate in the payments system and provide transaction-banking services. The merger would enhance value for ICICI Bank shareholders through a large capital base and scale of operations, seamless access to ICICI's strong corporate relationships built up over five decades, entry into new business segments, higher market share in various business segments, particularly fee-based services, and access to the vast talent pool of ICICI and its subsidiaries.

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HISTORY OF ICICI BANKIn October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger of ICICI and two of its wholly-owned retail finance subsidiaries, ICICI Personal Financial Services Limited and ICICI Capital Services Limited, with ICICI Bank. The merger was approved by shareholders of ICICI and ICICI Bank in January 2002, by the High Court of Gujarat at Ahmedabad in March 2002, and by the High Court of Judicature at Mumbai and the Reserve Bank of India in April 2002. Consequent to the merger, the ICICI group's financing and banking operations, both wholesale and retail, have been integrated in a single entity.

ICICI Group offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialised group companies and subsidiaries in the areas of personal banking, investment banking, life and general insurance, venture capital and asset management. With a strong customer focus, the ICICI Group Companies have maintained and enhanced their leadership positions in their ICICI Bank is India's second-largest bank with total assets of Rs. 4,736.47 billion (US$ 93 billion) at March 31, 2012 and profit after tax Rs. 64.65 billion (US$ 1,271 million) for the year ended March 31, 2012. The Bank has a network of 2,791 branches and 10,021 ATMs in IndiaICICI Prudential Life Insurance is a joint venture between ICICI Bank, a premier financial powerhouse, and Prudential plc, a leading international financial services group headquartered in the United Kingdom. ICICI Prudential Life was amongst the first private sector 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. 47.91 billion (as of March 31, 2012) with ICICI Bank and Prudential plc holding 74% and 26% stake respectively. For FY 2012, the company garnered Rs.140.22 billion of total premiums and has underwritten over 13 million policies since inception. ICICI Lombard General Insurance Company, is a joint venture between ICICI Bank Limited, India's second largest bank with consolidated total assets of over USD 91 billion at March 31, 2012 and Fairfax Financial Holdings Limited, a Canada based USD 30 billion diversified financial services company engaged in general insurance, reinsurance, insurance claims management and investment management. ICICI Lombard GIC Ltd. is the largest private sector general insurance company in India with a Gross Written Premium (GWP) of Rs. 5,358 crore for the year ended March 31, 2012. The company issued over 76 lakh policies and settled over 44 lakh claims and has a claim disposal ratio of 99% (percentage of claims settled against claims reported) as on March 31, 2012.

ICICI Securities Ltd is the largest integrated securities firm covering the needs of corporate and retail customers through investment banking, institutional broking, retail broking and financial product distribution businesses. Among the many awards that ICICI Securities has won, the noteworthy awards for 2012 were: Asiamoney `Best Domestic Equity House for 2012; 'BSE IPF D&B Equity Broking Awards 2012' under two categories:- Best Equity Broking House - Cash Segment and Largest E-Broking House; the Chief Learning Officer Award from World HRD Congress for Innovation in Learning category. IDG India's CIO magazine has recognized ICICI Securities as a recipient of CIO 100 award in 2009, 2010, 2011 and 2012. I-Sec won this awards 4 times in a row for which the CIO Hall of Fame award was additionally conferred in 2012.

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ICICI Securities Primary Dealership Limited (‘I-Sec PD’) is the largest primary dealer in Government Securities. It is an acknowledged leader in the Indian fixed income and money markets, with a strong franchise across the spectrum of interest rate products and services - institutional sales and trading, resource mobilisation, portfolio management services and research. One of the first entities to be granted primary dealership license by RBI, I-Sec PD has made pioneering contributions since inception to debt market development in India. I-Sec PD is also credited with pioneering debt market research in India. It is one of the largest portfolio managers in the country and amongst PDs, managing the largest AUM under discretionary portfolio management.I-Sec PD’s leadership position and research expertise have been consistently recognised by domestic and international agencies. In recognition of our performance in the Fixed Income market, we have received the following awards:“Best Domestic Bond House” in India - 2007, 2005, 2004, 2002 by Asia Money“Best Bond House” - 2009, 2007, 2006, 2005, 2004, 2001 by Finance Asia“Best Domestic Bond House” – 2009 by The Asset Magazine’s annual Triple A Country AwardsRanked volume leader - by Greenwich Associates in 2010 Asian Fixed-Income Investors Study. Ranked 5th in ‘Domestic Currency Asian Credit’ with market share of 4.5%, Only Domestic entity to be ranked.“Best Debt House in India” – 2012 by EUROMONEYICICI Prudential Asset Management is the third largest mutual fund with average asset under management of Rs. 688.16 billion and a market share ( mutual fund ) of 10.34% as on March 31, 2012. The Company manages a comprehensive range of mutual fund schemes and portfolio management services to meet the varying investment needs of its investors through117 branches and 196 CAMS official point of transaction acceptance spread across the country.

ICICI Venture is one of the largest and most successful alternative asset managers in India with funds under management of over US$ 2 billion. It has been a pioneer in the Indian alternative asset industry since its establishment in 1988, having managed several funds across various asset classes over multiple economic cycles. ICICI Venture is a wholly owned subsidiary of ICICI Bank.

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PRODUCTS OFFERED BY ICICI GROUP

Funds & InvestmentsWe understand that your investment goals and risk appetite change over time. To meet these evolving financial needs, we offer you a diverse range of investment products.Mutual FundsInvestment in Mutual Funds* is important to build an ideal and balanced portfolio. We help you identify the appropriate mix of Mutual Fund Schemes as per your risk appetite and financial goals, be it equity funds, where you look for growth and capital appreciation, or debt funds for capital *Mutual Fund investments are subject to market risks. Please read the offer documents of respective schemes carefully before investing.Portfolio Management Services*ICICI Bank Wealth Management will assist you for Portfolio Management Services (PMS) like Equity based Products, Commodity based Products, Index linked Products etc. by referring to our partner Asset Management companies. Alternative InvestmentsWe help you broaden your investment avenues by offering you Alternative Investment products like Residential & Commercial Real estate services**, Real Estate Funds & Private Equity*, through our partners. DepositsICICI Bank Wealth Management brings you a wide range of competitively priced deposit products that offer you safety of investment and steady growth of your portfolio. What's more, you can now invest in Deposits through our 24x7 channels: Internet Banking, Phone Banking & at select ATMsProduct Offered by ICICI Prudential Asset Management Company Ltd

Equity Funds

Balanced/Hybrid Fund

Debt Funds

Fund of Funds

Exchange Traded FundsEquity FundsICICI Prudential Dynamic PlanICICI Prudential Dynamic Plan is an Open-ended Diversified Equity Fund that aims to make the most of market changes. Given the dynamic nature of the markets, the fund has the

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ability to attack by taking aggressive asset calls in equity and equity related securities. On the flip side it may also adopt a defensive strategy by investing in debt, money market instruments and derivatives as and when markets get overvalued.

1 mth (%) 3 mth (%) 6 mth (%) 1 yr (%) 2 yr (%) 3 yr (%) 5yr (%)

Fund Returns 1.8 5.6 24.5 48.9 26.4 22.1 16.2

ICICI Prudential Focused Bluechip Equity Fund

ICICI Prudential Focused Bluechip Equity Fund is an Open-ended equity scheme that aims for growth from a focused and optimally diversified portfolio.It invests in equity and equity related securities of companies belonging to the large cap domain.

1 mth (%) 3 mth (%) 6 mth (%) 1 yr (%) 2 yr (%) 3 yr (%) 5yr (%)

Fund Returns 1.6 7.9 25.7 44.9 24.3 20.8 16.1

ICICI Prudential Value Discovery Fund

ICICI Prudential Value Discovery Fund is an Open-ended Diversified Equity Fund, which aims to invest stocks available at a discount to their intrinsic value, through a process of ‘Discovery’. The process involves identifying companies that are well managed, fundamentally strong, and are available at a price, which can be termed as a bargain.

1 mth (%) 3 mth (%) 6 mth (%) 1 yr (%) 2 yr (%) 3 yr (%) 5yr (%)

Fund Returns 1.7 11.4 46.5 86.8 36.9 31.5 21.8

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ROLE OF ICICI BANK AS AN ADVISOR

ICICI Bank's Small Enterprises Group's (SEG) Investment Banking team is dedicated to provide you niche and exclusive investment banking services. The ICICI Bank EdgeCapitalraisingAt times for a growing company, the amount of capital that a promoter can infuse in the business becomes limited. Businesses can be self sufficient for capital needs in their nascent and initial growth phases. However to meet expansion and growth plans, external capital is imperative. We at ICICI Bank, with our lending experience, fully understand this and help clients raise equity to fund growth. We have developed a strong network of domestic and international investors who are keen to partner with such success stories in India and these players solicit our advice for investing into such companies. .

Buy and sell advisoryInorganically adding growth to a business or hiving off non-core activities or opportunity to realize right value for the business created or an instance of taking a company to a bigger scale are the ways to strategize today. We at ICICI Bank provide assistance on both buy side and sell side transaction. With a large client franchise built, more than 10,000 asset clients and international linkages in developed economies, ICICI Bank can bring in the best synergy partner to conclude a sell side or buy side advisory assignment.Specialsituation solutionBacked by institutional legacy, in-depth understanding and linkages with key stakeholders in the process of turnaround, ICICI Bank's Investment Banking team can design solutions for special situations like CDR, BIFR, OTS, etc. Count on us to turn around the capital structure of your company and bring in additional capital for growth.

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ICICI SECURITIES LAUNCHES INVESTMENT ADVISORY SERVICES

MUMBAI: ICICI Securities has launched its investment advisory services under the newInvestment Advisors Regulations of 2013 issued by the Sebi and hopes to break even in a few months, a top company official has said.As per the company, the new advisory services covers financial planning, investment portfolio evaluation, quarterly reviews along with ongoing advisory support."We have launched the advisory services under which a comprehensive financial planning will be provided to customers. We are a 15-people team now, which will be increased to 25 going ahead. We hope that this new segment will be profitable in couple of months," Investment Advisory Services head Abhishake Mathur said.

At times for a growing company, the amount of capital that a promoter can infuse in the business becomes limited. Businesses can be self sufficient for capital needs in their nascent and initial growth phases. However to meet expansion and growth plans, external capital is imperative. We at ICICI Bank, with our lending experience, fully understand this and help clients raise equity to fund growth. We have developed a strong network of domestic and international investors who are keen to partner with such success stories in India and these players solicit our advice for investing into such companies. .

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CORPORATE SOCIAL RESPONSIBILITY

Corporate social responsibility (CSR, also called corporate conscience, corporate citizenship or sustainable responsible business/ Responsible Business) is a form of corporate self-regulation integrated into a business model. CSR policy functions as a self-regulatory mechanism whereby a business monitors and ensures its active compliance with the spirit of the law, ethical standards and international norms. With some models, a firm's implementation of CSR goes beyond compliance and engages in "actions that appear to further some social good, beyond the interests of the firm and that which is required by law." CSR aims to embrace responsibility for corporate actions and to encourage a positive impact on the environment and stakeholders including consumers, employees, investors, communities, and others.The term "corporate social responsibility" became popular in the 1960s and has remained a term used indiscriminately by many to cover legal and moral responsibility more narrowly construed. Proponents argue that corporations increase long term profits by operating with a CSR perspective, while critics argue that CSR distracts from business' economic role. A 2000 study compared existing econometric studies of the relationship between social and financial performance, concluding that the contradictory results of previous studies reporting positive, negative, and neutral financial impact, were due to flawed empirical analysis and claimed when the study is properly specified, CSR has a neutral impact on financial outcomes. Critics questioned the "lofty" and sometimes "unrealistic expectations" in CSR. or that CSR is merely window-dressing, or an attempt to pre-empt the role of governments as a watchdog over powerful multinational corporations.Political sociologists became interested in CSR in the context of theories of globalization, neoliberalism and late capitalism. Some sociologists viewed CSR as a form of capitalist legitimacy and in particular point out that what began as a social movement against uninhibited corporate power was transformed by corporations into a 'business model' and a 'risk management' device, often with questionable results.[9]

CSR is titled to aid an organization's mission as well as a guide to what the company stands for to its consumers. Business ethics is the part of applied ethics that examines ethical principles and moral or ethical problems that can arise in a business environment. ISO 26000 is the recognized international standard for CSR. Public sector organizations (the United Nations for example) adhere to the triple bottom line (TBL). It is widely accepted that CSR adheres to similar principles, but with no formal act of legislation.Business dictionary defines CSR as "A company’s sense of responsibility towards the community and environment (both ecological and social) in which it operates. Companies express this citizenship (1) through their waste and pollution reduction processes, (2) by contributing educational and social programs and (3) by earning adequate returns on the employed resources." A broader definition expands from a focus on stakeholders to include philanthropy and volunteering.

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Consumer perspectivesMost consumers agree that while achieving business targets, companies should do CSR at the same time. Most consumers believe companies doing charity will receive a positive response. Somerville also found that consumers are loyal and willing to spend more on retailers that support charity. Consumers also believe that retailers selling local products will gain loyalty. Smith (2013) shares the belief that marketing local products will gain consumer trust. However, environmental efforts are receiving negative views given the belief that this would affect customer service. Oppewal et al. (2006) found that not all CSR activities are attractive to consumers. They recommended that retailers focus on one activity. Becker-Olsen (2006) found that if the social initiative done by the company is not aligned with other company goals it will have a negative impact. Mohr et al.(2001) and Groza et al. (2011) also emphasise the importance of reaching the consumer.

ScopeInitially, CSR emphasized the official behavior of individual firms. Later, it expanded to include supplier behavior and the uses to which products were put and how they were disposed of after they lost value.

Ethics training

The rise of ethics training inside corporations, some of it required by government regulation, has helped CSR to spread. The aim of such training is to help employees make ethical decisions when the answers are unclear. The most direct benefit is reducing the likelihood of "dirty hands fines and damaged reputations for breaching laws or moral norms. Organizations see increased employee loyalty and pride in the organization. Common actionsCommon CSR actions include: Environmental sustainability: recycling, waste management, water management, renewable energy, reusable materials, 'greener' supply chains, reducing paper use and adopting Leadership in Energy and Environmental Design (LEED) buildind standards. Community involvement: This can include raising money for local charities, providing volunteers, sponsoring local events, employing local workers, supporting local economic growth, engaging in fair trade practices, etc. Ethical marketing: Companies that ethically market to consumers are placing a higher value on their customers and respecting them as people who are ends in themselves. They do not try to manipulate or falsely advertise to potential consumers. This is important for companies that want to be viewed as ethical.

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THE ROLE OF BANKS IN CORPORATE SOCIAL RESPONSIBILITY

Management without caring needs and expectations of stakeholders in a community will notbe competitive compared with those who do in the 21st century. Demand for accountabilityand transparency from both public and private sectors has become soaring. In the olden days,management is seeking for survival and profits. Nowadays, management concerns managingfinancial and non-financial results with awareness of risk and maintenance of transparency.As a result, corporate social performance (CSP) has possessed equal importance of corporatefinancial performance (CFP).The term “Stakeholder” has been put into today‟s management vocabulary. In fact, itprovides a full picture for management to map their „ought to be‟ – “obligations” and as wellas their „need to be‟ – “customers‟ requirements”. Having a stakeholder map, it can widen thehorizon of marketers in the sense of making them realize the importance of socialresponsibility; and the need of fulfilling requirements of customers and the society.Stakeholders do not want to have any undesirable events found in the market. Issues that they

1 The role of banks in are concerned are things that affect their health and safety. Products or services that consist of misleading messages in advertisements are especially the worry of the public. They want to get a real message from marketers, instead of marketing gimmicks. Hence, marketers should develop an awareness of social responsibility when devising marketing campaigns Schermerhorn (1999) has stated clearly that the main purpose of management is toinduce a positive impact on human behavior in an organization. The control of humanbehavior can be found during the activities of planning, organizing, leading and controlling.Management of an organization can have internal and external control on human behavior.For the internal one, management can arrange appropriate training for staff in order to makethem have self-discipline and commitment towards an organization. For the external control,proper supervision strategies can be used to limit staff‟s behavior.In order to manage people‟s behavior successfully internally and externally, Drucker(2006) mentioned that realization of common goals and common values with ongoingtraining and timely responses to change were fundamental in management. In short, what wehave learnt from Drucker is that management is about handling human beings, integratingvariables, unifying objectives, developing people toward common objectives for results.“Market standing, innovation, productivity, development of people, quality, financialresults all are crucial to a company‟s performance and indeed to its survival.” (Drukcer,2006)

So, a manager needs to managing people, process and resources for results and forfulfilling requirements of stakeholders for quality. Quality concepts have been spread acrossindustries and countries. Current practice of achieving quality in manufacturing and servicingindustries is obtaining ISO 9000 and other industry-related certificates. How about qualitystandard used in banking industries? What are the common practices for bankingorganizations to prove their quality service? According to Kothari (2006), quality includesfulfilling a set of inherent characteristics, meeting stated or implied needs or expectations,conforming to specifications; and moving towards customer satisfaction. Bornman (2004)

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mentioned that there were many attempts to define “quality”.“One of the definitions used in managerial literature is that „quality is the extent towhich the product meets the demands; another is „customer satisfaction‟

2. Organizational Culture and Committed Staff for QualityIn order to gain trust from the public, organizations shall not only provide quality productsand services, but also develop responsible and ethical staff. Empowerment is important inestablishing open organizational culture. Management shall have trust on their staff for policyinvolvement and decision-making. Empowerment not only means staff involvement indevising organizational policies, but also delegation and participation in decision-making.Open management style should let employees have freedom in decision-making so asto increase their productivity and quality of work. Instrumental management style no longersurvives in a world which focuses on values, workplace democracy and employeeempowerment.Michalos (2006) has claimed that commitment of staff is crucial and shall besupported with actions for reflection. Experience learning and experiencing personalsatisfaction from living can let both organizations and employees grow for betterment. 105 S. Yeung

Betterment for staff and organizations can help establish positive organizational culture toprovide quality for customers, and more importantly, to gain confidence from the public."Only when we can satisfy our customers' demands, we can teach our colleaguesvarious creative ways of dealing with our customers. This will enable us to foster a positivefeedback cycle to serve our customers better. When our colleagues learn, they contribute atthe same time and our customers benefit. We then fulfill our responsibilities towards thesociety, the region and our country.(Tsai et al., 2006).According to Harrison (2000), the main factors affecting a person's performance are"knowledge, skill, motivation and environment". He pointed out people not perform wellwere usually caused by: inadequate information or reference materials; poor workingenvironment or inadequate tools; poor incentives; lack of knowledge; lack of skill; and poormotivation.Harrison brought up the point that the powerful thing that drove people behavior wasself-image. In fact, ISO 9001: 2008 can act as a catalyst to strengthen the image of“involvement of staff” and "transparent". Besides, concepts like "corporate socialresponsibility" (CSR) and "ethics" have also become a fundamental part of the futuredevelopment ISO 9001: 2008.

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5. Role of Banks in Corporate Social Responsibility (CSR)Taking deposits, granting loans and providing complementary services are the corebusiness of banks. No matter what kinds of countries, what kinds of culture, and what kindsof banking products and investors, banks need to be responsible for their customers in asocial responsible way.From literature, global regulations imposed for banks is holding reserve against loansand achieving AAA grade ratings. In the past years, some banks tried to bundle up loans toprivate customers and companies, and selling these to one another on the inter-bank market.According to Mcllroy (2008), these securitised loans are often referred as asset-backedsecurities (ABSs) and are then sold on as more complex financial instruments as collateriseddebt obligations (CDOs). As the loans were removed from the banks‟ balance sheet, thebanks were able to make further advances. The issue has been raised since then is on thesecurity of loans, transparency of risk to investors, and regulations involved in furtheradvances. As a socially responsible bank, it not only executes lawful banking practice, butalso practices wisely and prudentially with close supervision of transactions for providingcustomer confidence under prosperous and glooming economic conditions.

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CSR AND CORPORATE GOVERNANCE IN BANKING SECTOR IN INDIA

Corporate Social Responsibility (CSR), also known as corporate responsibility corporatecitizenship, responsible business, sustainable responsible business (SRB), or corporate socialperformance is a form of corporate self regulation integrated into a business model. 1 CSRpolicy basically works as a standard of built-in, self-regulating mechanism and ensure theirharmony with law, ethical standards, and international norms.The three keys to an effective CSR policy are commitment, clarity and congruence withcorporate values. Clarity is all-important because social responsibility is a broad term, and itneeds to be debated and hammered out to meet each company’s circumstances. Congruenceis about ensuring that the company’s attitude to its responsibilities towards society isconsistent with the way in which it runs the whole business, i.e. its values and culture.An important aspect of corporate social responsibility is Sustainable Development. It isbroadly defined as the advancement of economic development while maintaining the qualityof environmental and social systems. Incorporating Environmental & Social (E&S) issuesinto development is important because environmental resources provide a basis for social andeconomic development. The principles of sustainable development are important in allindustrial and commercial sectors, as all activities have the potential to influence social andenvironmental welfare quality. The financial sector is of particular importance, as this sectoris able to affect many projects and the development trends that result from them.There is much that the financial sector can do to assist efforts to achieve sustainability.Internal efforts to make day-to-day operations cleaner, more efficient and supportive of socialstructures can help. Integrating various issues into strategic operations is also important. Inthis way, financial institutions not only ensure that internal activity is sustainable, but theycan also help financing itself to have more sustainable development.RBI guidelines on CSR:To highlight the role of banks in corporate social responsibility the RBI circulated a notice onDecember 20, 2007 for all the scheduled commercial banks, with title “Corporate SocialResponsibility, Sustainable Development and Non-Financial Reporting – Role ofBanks”.2

1A letter to all scheduled banks excluding the RRBs from the Chief General manager (P. Vijaya Bhaskar) of theReserve bank of India on 20th December,2007.The Times Of India ,Article Indian Banks Beyond CSR, June 16,2008CSR and Corporate Governance in Banking Sector in IndiaMajor issues discussed in the notice were regarding -1. Corporate Social Responsibility2. Sustainable Development3. Non-Financial Reporting.Briefing about the corporate social responsibility program to other member commercialbanks RBI followed many international initiatives to highlight the importance of this noticelike:

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1. United Nations Environment Program Finance Initiative (UNEP FI)2. Global Reporting Initiative (GRI)3. International Finance Corporation4. The Equator Principles5. Declaration on Financial Institutions.Apart from these international initiatives, RBI report also talked about other important andurgent issues regarding1) Global warming & extent of problem,2) Stern Review – The Economics of Climate Change3) The Happy Planet Index,4) The Kyoto Protocol.The concern of RBI is also inclined to other activities like -FT Sustainable Banking Awards -The FT Sustainable Banking Awards to acknowledge the progress that banks have made inintegrating social, environmental and corporate governance objectives into their operationswhile maximizing shareholder value. The goal is to highlight initiatives that work and toreward progress on the journey toward sustainability.Carbon TradeThe concept of carbon credit came into vogue as a part of an international agreementpopularly known as Kyoto Protocol (KP). The KP aims to tackle global warming by settingtarget levels for nations to reduce greenhouse gas emissions worldwide. The scheme allowsdeveloped nation polluters to fund emissions cuts in developing countries, which is cheaperthan cutting emissions at home.CSR and Corporate Governance in Banking Sector in India

Indian ScenarioIndia acceded to the KP in August, 2002. India is in a position to reap maximum benefitsfrom the global carbon trade. India, being a developing country, is exempted from therequirements of adherence to the Kyoto Protocol. However, it can sell the Carbon Credit tothe developed countries.

RBI focuses on CSR:RBI’s assistance to Mahindra & Mahindra Financial Services Ltd for the year 2008 theCompany has complied with all the applicable regulations of the Reserve Bank of India(RBI). RBI then assisted it by providing additional provisioning for Non Performing Assets(NPAs) at a faster rate than that prescribed by RBI for NBFCs. In the earlier years also thecompany continued to involve itself in social welfare initiatives by contributing to recognizedcharitable Institutions, which specifically benefit the economically disadvantaged andsocially weaker sections of the society.During the year 2008, the Company contributed Rs.81.1 lacs towards Corporate Social Responsibility to various institutions for charitablepurposes.Use multiple channels to expand outreach3Banks do not exist in a vacuum. They make a large contribution to the country's GDP growth,meet the demand of the growing middle class, contribute to infrastructure spending, and

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reach out to the semi-urban and rural areas so, when it comes to social responsibility banksneed to move beyond a straitjacketed understanding of the 'corporate social responsibility.The mindset RBI follow is that a deposit account is the gateway to financial inclusion and itsapproach is to connect people and use multiple channels to expand outreach.

Responsible Corporate Citizens – Taking in consideration wide concerns on climate change and global warming, Reserve Bankof India (RBI) asked banks to go green by taking effective steps to further the cause ofsustainable development. The banks are advised to implement suitable and appropriate planof action toward helping the cause of sustainable development. RBI also asked banks to place

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Some recent initiatives by Indian BanksIn order to address ecological and environmental concerns, Reserve Bank of India hasdecided to go for energy efficient buildings. Bureau of Energy Efficiency has awardedthe first star rating labels to the Bank’s building at Bhubaneswar and New Delhi. Thefour buildings located at Bhubaneswar, Chennai, Kochi, Kolkata are recognized as 5-star building under the rating system.Small Industries development bank of India (the prime financer to small andmedium scale industries) has also incorporated environmental and social aspects in itscore business activities so as to ensure sustainable development. It is providingconcessional and liberal credit to medium and small scale industries which areinitiating energy saving projects and are adopting pollution control measures.State Bank of India (SBI), the oldest bank has also adopted green bankinginitiatives in its lending operations. Recognizing the warning of global warming bankhas decided to initiate urgent measures to combat the climate change throughenvisaging two pronged approach viz. i) to reduce the Bank’s own carbon footprintand ii) to sensitize the Bank’s clients to adopt low carbon emission practices. ICICIbank has shown its commitment to corporate environmental stewardship and extendeda great support to clean technology projects. It has also liberalized credit to zeroemission vehicles. IDBI has set up carbon desk. IDBI has come forward to join handswith Smile Foundation in social development initiatives. The bank has contributed 14personal computers to Smile Foundation which have been utilized in four differentprojects being implemented through as many partners in Delhi and NCR. YES BANK,India’s fourth largest private sector Bank, in association with CARE India, ahumanitarian relief and development NGO working in India for more than 60 years,has launched India’s first Social Deposit Account (SDA). “The Social Deposit Account(SDA) is an evolution of the regular Fixed Deposit account where customers have theoption of donating their interest income to a social cause through CARE India. It alsowon Best CSR Practice Award in March 2011. Axis Bank Foundation (ABF) aspiresto contribute in the areas of education and healthcare. It has set up various programmeswhich provide educational support, in order to meet these goals. Balwadis- theFoundation has identified the need to focus on early childhood programs for 2 - 6 yearolds. As part of our initiatives to support education, we help develop learning placesfor young children living in large urban slum clusters so that it creates a strongfoundation and inculcates social and cultural awareness in them. HDFC Bank hasbeen working with NGOs for providing non formal vocational and technical education860 Deepika Dhingra & Rama Mittalprograms as well as skill up gradation courses to enable sustainable employment andincome generation for economically weaker sections.

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A ROAD WAY TO CORPORATE SOCIAL RESPONSIBILITY: A CASE STUDY OFICICI BANK

A. IntroductionCorporate Social Responsibility (CSR) has been a long-standing commitment at ICICI Bank andforms an integral part of our activities. The Bank’s contribution to social sector developmentincludes several pioneering interventions, and is implemented through the involvement ofstakeholders within the Bank and the broader community. The Bank established the ICICIFoundation for Inclusive Growth (ICICI Foundation) in 2008 with a view to significantly expand theactivities in the area of CSR. Over the last few years ICICI Foundation has developed significantprojects in specific areas, and has built capabilities for direct project implementation as opposedto extending financial support to other organisations.The objective of the Bank is to pro-actively support meaningful socio-economic development inIndia and enable a larger number of people to participate in and benefit from India’s economicprogress. This is based on the belief that growth and development are effective only when theyresult in wider access to opportunities and benefit a broader section of society. The aim is toidentify critical areas of development that require investments and intervention, and which canhelp to realise India’s potential for growth and prosperity.The Corporate Social Responsibility Policy (CSR Policy) of the Bank sets out the frameworkguiding the Bank’s CSR activities. The Policy also sets out the rules that need to be adhered towhile taking up and implementing CSR activities.

B. Scope of Corporate Social Responsibility policyThe policy would pertain to all activities undertaken by the Bank towards fulfilling its corporatesocial responsibility objectives. The policy would also ensure compliance with section 135 of theCompanies Act, 2013 (CA2013/Act) and would include the activities as covered under ScheduleVII to the Act and the Companies (Corporate Social Responsibility Policy) Rules, 2014 and asamended from time to time.

C. Governance structureThe Corporate Social Responsibility Committee (CSR Committee) is the governing body that willarticulate the scope of CSR activities for the Bank and ensure compliance with the CSR Policy.The CSR Committee would comprise of three or more Directors including at least oneindependent Director. The Bank has a CSR Committee which is duly constituted in accordancewith the provisions of the Act with respect to its composition and terms of reference.

D. Operating framework1. The CSR Committee has duly formulated the CSR policy which has been approved by theBoard as prescribed under CA2013. The CSR plan would operate as prescribed by the CSR

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Committee and under its supervision

2. Activities undertaken by the Bank may include projects being implemented directly by theBank as well as contributions to ICICI Foundation and other eligible entities with track recordand standing in line with regulation and as may be decided by the CSR Committee from timeto time.

3. The responsibility for implementation of identified activities/ projects shall be as per theorganisational structure approved by the Managing Director & CEO.

4. Funds would be disbursed in accordance with the directions of the CSR Committee.E. MonitoringThe CSR Committee shall ensure a transparent monitoring mechanism for CSR activities.1. The CSR Committee shall review the progress of CSR activities at least twice a year, includingthe annual review.2. The Board of Directors shall review the progress of CSR activities at least annually.3. The activities of ICICI Foundation for Inclusive Growth (ICICI Foundation) would also beoverseen by the Governing Council of ICICI Foundation.

F. DisclosureThe Bank shall include in its annual report, commencing with the annual report for the year endingMarch 31, 2015, the disclosures as prescribed under Companies Act, 2013 and the rules asamended from time to time.The above information shall also be displayed on the Bank’s website.

G. Corporate Social Responsibility ActivitiesThe CSR Committee of the Bank would consider and approve the projects or programmes thatthe Bank should undertake as CSR in India.The Bank’s primary focus areas for CSR activities are:1. Education (Schedule VII (ii) promoting education, including special education and employment enhancing vocation skills especially among children, women, elderly and the differently abled and livelihood enhancement projects)Education represents a critical area of action to realise India’s growth potential as also make itinclusive, by enabling children from all sections of society to have access to quality basiceducation that equips them for taking up higher education or job-oriented skill training. At thesame time, India’s institutions of higher learning also require investment in capacity building tosupport India’s growing and evolving needs and become global centres of excellence.The Bank, both directly and through ICICI Foundation, will continue to work with various bodiesincluding state governments and other not-for-profit organisations to improve the quality ofeducation in government and municipal schools, which account for the vast majority of schoolgoing

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children in the country. ICICI Bank will continue to work with institutes of higher educationfor focused capacity-building in specified disciplines, particularly finance & management.

2. Health care(Schedule VII (i) Eradicating hunger, poverty and malnutrition, promoting preventive healthcareand sanitation and making available safe drinking water; (iii) Promoting gender equality,empowering women, setting up homes and hostels for women and orphans, setting up old agehomes, day care centres and such other facilities for senior citizens and measures for reducinginequalities faced by socially and economically backward groups; (x) Rural development projects)The healthcare challenge in India spans a number of dimensions, including access to affordablehealthcare for the poor; awareness of health issues & available facilities/ benefits among the lessprivileged segments of society and specific vulnerable sections of the population; and childmalnutrition, which impairs the capacity of a child to lead a healthy and productive life.Addressing this challenge is essential to achieve the objective of inclusive growth.The Bank and ICICI Foundation will continue to focus on developing innovative models with thepotential to scale up and bring about improvements in the delivery of healthcare to themarginalised segments of society and other appropriate measures to promote health care.

3. Skill development and sustainable livelihoods(Schedule VII (ii) promoting education, including special education and employment enhancingvocation skills especially among children, women, elderly and the differently abled and livelihood enhancement projects; (iii) Promoting gender equality, empowering women, setting up homes and hostels for women and orphans, setting up old age homes, day care centres and such other facilities for senior citizens and measures for reducing inequalities faced by socially and economically backward groups)Enabling India’s youth to gain skills that can provide employment is key to realising the potential of India’s demographic dividend and driving inclusive growth. Improving employability of the youth from lower-income sections of society is hence an important focus area. 6The ICICI Academy for Skills has been set up across the country to provide job-oriented skilltraining to youth. Several centres have been set up across the country. In this initiative, ICICIFoundation is also leveraging the skills and training capabilities of large corporates in developingtraining modules in their respective domains. ICICI Foundation is also liaising with corporates andbusinesses to get the trained youth employed, through a job portal. ICICI Bank will continue todevelop the ICICI Rural Self Employment Training Institutes.4. Financial inclusion(Schedule VII (iii) Promoting gender equality, empowering women, setting up homes and hostelsfor women and orphans, setting up old age homes, day care centres and such other facilities forsenior citizens and measures for reducing inequalities faced by socially and economicallybackward groups (x) Rural development projects).

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The Bank strongly believes that to improve the overall economic condition of the low-incomePopulation and to empower them with means to overcome adversities or inequalities, access toFinancial services are an important factor.The Bank would continue to focus on expanding its reach and its initiatives in this area includeUsing various channels like branches and business correspondents, and leveraging technology,To make banking services accessible to low-income groups and the rural population, includingThe urban poor and migrant workers.

5. Support employee engagement in CSR activitiesThe Bank supports the involvement of its employees in CSR activities. The Bank will encourageemployees to participate in CSR activities of the Bank and ICICI Foundation.

6. Capacity building for corporate social responsibilityICICI Foundation will continue to promote incubation of expertise for implementing corporatesocial responsibility initiatives. It will also work towards providing a platform for organisationsengaged in social initiatives, and discussion & thought leadership on critical challenges toinclusive growth. The Bank and ICICI Foundation will continue to support initiatives that promoteindividual and corporate philanthropy.

7. Other areasICICI Bank will continue to provide support to specific needs such as during natural disasters,through financial as well as logistical support. The CSR Committee of the Bank may choose toselect areas in addition to those specified above in the course of fulfilment of the CSR objectivesof the Bank as may be decided by the CSR Committee from time to time.

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ICICI Bank LtdCSR activities:

Message from the ChairmanAt the ICICI Group, we view our social initiatives and our ethical standards as core elements of the foundation we are building for our growth. During the year, we have sought to take our social initiatives to the next level through the establishment of The ICICI Foundation for Inclusive Growth. We believe that this will significantly expand the ICICI Group’s activities in the area of corporate social responsibility, philanthropy and community development. The Foundation will seek to catalyse and accelerate social and economic inclusion by bridging economic and human development gaps.The ICICI Group will continue to leverage growth opportunities in India and overseas, seek to make a significant contribution to the integrated development of our country and build a platform for sustained growth that will create value for our stakeholders. ICICI Bank’s ‘Read to Lead’ initiative aims to bridge gaps in the access to formal schooling for a large number of children from disadvantaged backgrounds. This initiative aims to reach out to 100,000 children through different voluntary organizations, facilitating formal schooling, bridge courses, and supplementary teaching-learning material. For children like Riya, formal education is now a reality The Foundation’s mission is to improve the incomes of the low-income households in India. It believes that improving market access for low income households is the only sustainable way to bring about increase in their incomes and therefore it principally focuses its attention on redressing market failures which constrain them.However, low income households are often not able to access even well functioning markets because they lack the necessary physical capacity and education due to lack of access to healthcare and schooling. It is also possible that even well-developed markets may not provide a level playing field for low income households. Also in the long-run markets may pursue strategies that are not environmentally sustainable. Driven by these concerns, the Foundation’s is actively mentoring institutions that work on these defined focus areas: Markets: The Foundation focuses on facilitating universal access to finance to make markets more responsive to the needs of the poor and to link with low-income households both as producers and consumers. This is done through developing appropriate channels, business models and back-ends for financial services access. It also supports research and model building for expanding financial services access. The Foundation works closely with and mentors the IFMR Foundation (www.ifmrfoundation.org.in) and its partners to fulfill its own mission of increasing the incomes of low income households in a sustainable manner. It is the Foundation’s belief that addressing financial market failures substantively will have an impact

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on the access of low income households to a variety of other markets including healthcare, schooling and drinking water. Human Capacity:A focus on fundamental human capacities such as health and education is crucial for people to reach their full potential and lead productive lives. Child survival and early childhood development are amongst the most urgent development challenges facing Indiatoday.The Foundation works closely with the ICICI Centre for Child Health & Nutrition (ICCHN) (http://www.icchn.org.in/), an interdisciplinary funding and research centre focused on the health and nutrition of vulnerable women,infants and young children in India. Working in partnership with governments, Civil Society Organisations (CSOs)/Non-Governmental Organisation (NGOs), research institutions and the private sector, ICCHN concentrates on developing, evaluating and mainstreaming a range of community based and health system strategies to achieve scaled and sustainable improvements in health and nutrition. A population of 2.7 million has been impacted through ICCHN’s partners and interventions. Further, through its partnerships, ICCHN has supported state-wide public-health capacity building efforts in Chhattisgarh, Bihar, Jharkhand and Orissa for quality improvements Promoting Inclusive GrowthUnder the National Rural Health Mission (NRHM), as well as a city-wide effort in Mumbai. ICCHN’s support has enabled five of its partners to grow into important resource institutions for the health sector.In the field of education the ICICI Foundation supports the ICICI Centre for Elementary Education (ICEE) (www.icee.org.in), which strives to play a catalytic role in improving the provision and quality of elementary education. It enters into partnerships with voluntary organisations working in education that have experience in teachers education, curriculum development, material development, educational research and running schools for marginalized communities and implementing large programmes. Working with these CSOs/NGOs, ICEE seeks to energise the existing government network of educational institutions at the district, state and national levels. Bodies like the State Councils of Educational Research and Training (SCERTs) and the District Institutes of Education and Training (DIETs) in several parts of the country form a part of this engagement. In its endeavour to improve the quality of elementary education, ICEE has reached out to nearly 6 million children through curricular reform. About 45,000teachers have been trained. It has partnerships with state governments of Bihar, Rajasthan, Chhattisgarh, Madhya Pradesh and Gujarat. Sustainability:Promoting environmental sustainability and the growth of a strong civil society are crucial requisites for inclusive growth. Towards this end, the Foundation has partnered with the Environmentally Sustainable Project Finance (ESPF)(http://ifmr.ac.in/cdf/project_finance.htm) research team at the Centre for Development Finance at IFMR, in order to foster markets for delivering high quality, environmentally sustainable infrastructure, goods and services. Its work is focussed on the areas of sustainable development, climate change, responsible investment

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and accountability. Towards building an effective civil society, the Foundation is actively mentoring CSO Partners (www.csopartners.org.in), a resource centre to strengthen CSOs which includes NGOs engaged in the task of social change and economic development and local self government organizations such as Gram Panchayats. CSO Partners seeks to facilitate strategic partnerships between CSOs and experienced service providers with whomit is in the process of building partnerships, in various areas, including fund-raising, financial management, volunteering, organisational governance, communications, accounting, human resources, legal aid and accounting. Its current partners include: GiveIndia (www.giveindia.org), Mitra (www.mitra.org.in), Infochange(www.infochangeindia.org), Governance Matters (www.governancematters.in) and MAM movies(www.mammovies.com).The ICICI Group believes that inclusive growth is essential to the sustainable and healthy growth of the economy.The ICICI Group is committed to create conditions for the empowerment of low-income Indians and to facilitate inclusive growth.

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ICICI Bank opens training academy as part of CSR activities

ICICI Bank has opened a skill training academy in Jaipur as part of its Corporate Social Responsibility (CSR) efforts, to provide vocational training to youth from economically weaker section of the society.

"The vocational training course will provide sustainable livelihood opportunities to the beneficiaries," ICICI Bank Managing Director and Chief Executive Chanda Kochhar said in Jaipur. 'Around 62 per cent of total population is in the productive age group of 15-59 years. Over 60 per cent of our population will be in the productive age group till at least 2060.'"The launch marks the next step in our strategy to promote inclusive growth in India, will train 5,000 youth at nine training centres across the country in the first year of operation," she said, adding, the academy aims to train 15,000 youth across the country by 2016.

The courses offered will include selling skills, office administration and web design for graduates; and electrical & home appliance repair, refrigeration & air-conditioning repair, and diesel generator & pump repair for Class X passouts, Kochhar said, adding that the courses will be of about 12 weeks duration.

'Our youth in the age group of 18 to 30 years constitutes about 24 per cent of the total population. There are some critical challenges we need to address'She said the bank is already close to the target ofspending 2 per cent of average profits on activities relating to CSR that has been mandated in the new Companies' law.

"We are very close to this target as we have been expanding to new initiatives over time. The formal reporting on the per cent of profit used for CSR would be started from next year," she said.

'About 25 per cent of the incremental global workforce over the next two decades will come from india. This poses a significant challenge for the country in terms of job creation and the immediate need for skill building'Apart from Jaipur, Kochhar said, the skill development centres would be set up in Coimbatore, Chennai, Hyderabad, etc through the ICICI Foundation.

The bank is setting up residential centres in Jaipur, Sangli and Coimbatore and non-residential centres in Bangalore, Chennai, Hyderabad, Jaipur and Pune. The bank is also exploring the possibility of a centre in eastern India, Kochhar said.

'We must significantly expand vocational education focused on specific job skills'"In the last five years, we have significantly expanded our efforts with a sharp focus on four key areas that are essential enablers for widespread participation in economic opportunities in the country education, healthcare, skill development for sustainable livelihoods and financial inclusion," she said.

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ICICI Bank vows focus on infrastructure, youth and social responsibilities

MUMBAI: As it completes 60 years of the group's existence tomorrow, ICICI Bank has identified infrastructure building, a young population and social fibre of the country as its three focus areas going ahead.The group would focus on creating new products for the youth of the country and further tap the potential of technology going forward, while partnering in the government's infrastructure building initiatives, ICICI Bank's chief Chanda Kochhar said.

Speaking about the three biggest focus areas for the group going ahead, Kochhar said ICICI would also focus on its social responsibilities as a national institution and partner the government in areas like skill development.The ICICI Group would tomorrow complete 60 years of its existence since the erstwhile ICICI Ltd was set up in 1955.The Industrial Credit and Investment Corporation of India (ICICI) was originally set up as an Indian financial institution at the initiative of the World Bank, the Government of India and representatives of Indian industry to provide project financing to Indian businesses.It later got merged with ICICI Bank which was set up in 1994."Going forward, as India gets back to its next round of growth, we are looking forward to partner in the government's infrastructure building initiatives," Kochhar told PTI in an interview."The second focus area going forward will be partnering the government and the people of India in reaping the demographic dividend which still remains untapped to a large extent."The true potential of India's demographic dividend has not been yet fully realised and we will focus on creating products for the youth of our country and further tap the potential of technology."Thirdly, we will look at our social responsibilities as a national institution and would look at partnering in areas like skill development," said Kochhar, who began her career with ICICI Ltd in 1984 as a management trainee and has been instrumental in shaping the retail banking sector in India.Talking about the three biggest 'high points' of the group in 60 years of its existence, Kochhar said, "It's been a great journey for ICICI in the last 60 years and one of the major high points clearly has been that as an institution, we have played a major role in nation building, including by way of our participation in building infrastructure.""Be it roads, power, highways, telecom and manufacturing, ICICI has been a partner in almost all areas of infrastructure building exercise," she said."In the second major high point, we participated in catalysing the consumer demand in the country, including by way of retail loans for housing, auto and a whole lot of other purposes.The third major high point has been technology, being an underlying feature for all banking services that we offer," Kochhar said.Incidentally, Prime Minister Narendra Modi on Friday asked banks to become 'agents of social transformation'.Speaking at a function to dedicate a 'digital village' developed by ICICI Bank in Gujarat, Modi said banks need to take up social causes and adopt a charter for the nation's development.

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ICICI Bank was earlier a wholly-owned subsidiary of the erstwhile ICICI Ltd, whose principal objective was to create a development financial institution for providing medium-term and long-term project financing to Indian businesses.In the 1990s, ICICI transformed its business from a development financial institution offering only project finance to a diversified financial services group offering a wide variety of products and services, both directly and through a number of subsidiaries and affiliates like ICICI Bank. The parent firm later merged with the bank.While ICICI Ltd was formed in 1955, just about seven years after India's independence, it got a new lease of life in 1971, when the company hired a group of young management school graduates, including K V Kamath, then 24-years old.Kamath later went on to head the bank and is currently serving as Chairman of the bank.Kochhar also joined the group as a trainee in 1984 and went on to hold several senior positions before being drafted in 1993 to a core team to set up ICICI Bank.She was elevated to the Board of Directors of ICICI Bank in 2001 and was instrumental in establishing ICICI Bank during the 1990s, and subsequently headed the infrastructure finance and corporate banking business inICICI Limited.She became Joint MD and CFO in 2007 and continued in that role before becoming Managing Director & CEO of ICICI Bank in 2009.Now, she is responsible for the bank's diverse operations in India and overseas and also chairs the boards of the bank's principal subsidiaries, which include life and general insurance companies.ICICI Bank is now India's largest private sector bank with total assets of Rs 5,94,642 crore (USD 99 billion) as on March 31, 2014 and profit after tax of Rs 9,810 crore (USD 1.6 billion) for the year ended March 31, 2014.It has a network of 3,845 branches and 12,012 ATM's across India.

Some of the CSR initiatives already undertaken by the Bank are providing – Solar street lights and Hand pumpsets in Rural areas. Rain water harvesting mechanism / equipments agriculture / drinking water /development of the area. Ambulances to Hospitals catering to economically challenged sections of thesociety, rural areas, etc.. Ultra-modern medical equipments to Family Planning Centres and otherhospitals. Wheel chairs to physically challenged sportspersons and others. Gensets for running equipments in hospitals for the Cancer patients. Construction of classrooms for the economically challenged students of thesociety. Support to orphaned / blind students requirements. Vehicles for institutions providing food / mid-day meal to government /localbodies schools catering to poorer sections of the society

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CONCLUSION

Banking sector is highly contributing towards the Corporate Social Responsibilities for the benefit of society along with their basic banking services, ICICI is a emerging private sector bank which is stepping positively towards the social banking apart from earning the profit, ICICI is increasing their amount of expenditure as the year possess, by seeing its contribution in the year 2013 we can say that this Bank can give a tough competition to other private sector banks. The Bank must try to increase the amount of expenditure in the future which will shows a positive attitude by the banking sector. The concept of CSR is now turning in to theact in the year 2013, supported by the government. Banks can play an important role in the growth of nation’s economy ,when the people get additional support in the form of different social programmes then their standard of living will raise and it help in making a developed nation. The banks must focus on making the people aware about what they are doing for them so that they can get the benefit from such CSR initiatives. Banking sector in India is showing interest in integrating sustainability into their business models but its CSR reporting practices are far from satisfaction. There are only a few banks which report their activities on triple bottom line principles. As a matter of fact, the standards for rating CSR practices are less uniform in comparison to that for financial rating. This leads to problem in comparison of corporate houses and determining the CSR rating. The study found out that among the reporting banks also, some banks are making false gestures in respect of their efforts for socio environmental concerns. Most of the Banks use CSR practices as a marketing tool and many are only making token efforts towards CSR in tangential ways such as donations to charitable trusts, NGOs, sponsorship of events, etc. Very few banks have a clearly defined CSR philosophy. Mostly banks implement CSR in an ad-hoc manner, unconnected with their business process and don’t state how much they spend on CSR activities. Further voluntary actions are required to be taken by the financial bodies to ensure the socio-environmental feasibility of projects to be financed. Indian banking sector must also portray their socially responsible behaviour through integrating triple bottom line principle.Financial Institutions can do a lot to assist efforts for social responsibility and achieve sustainability. Banks must also provide appropriate trainingto its employees on environmental and social risks in lending to ensure that climate change is taken into account in corporate banking decisions.

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