Summer internship project of Icicidirect.com on comparative analysis

JATIN S. BHATT Page 1

A

SUMMER INTERSHIP PROGRAMME

ON

COMPARATIVE ANALYSIS

&

COMPANY OVERVIEW

AT

Submitted in partial fulfillment of the required of

M.B.A. programme

SUBMITTED BY: GUIDED BY:-

BHATT JATIN S. Internal Guide:

ROLL NO. : - 05 Mr. Nilesh Gami

MBA SEMESTER – III External Guide:

ACADEMIC YEAR: 2010-11 Mr. Hitesh Bosmiya

EVA INSTITUTE OF MANAGEMENT - SUPEDI.

Affiliated with

Gujarat Technological University, AHMEDABAD


COLLEGE CERTIFICATE

This is to certify that Mr. BHATT JATIN SURESHBHAI has satisfactorily

completed the project work at ICICIDIRECT.COM, JETPUR, under the guidance

based on the declaration made by the candidate and my association as guide for

carrying out this work; I recommend this project report for evaluation as a partial

requirement of the MBA Programme of Gujarat Technological University,

Ahmedabad.

DATE: Assit. Prof. Nilesh Gami

Eva Institute of Management – Supedi (Project Guide)

DATE: (Dr. Ravi Vikram)

Director EVAIMS - Supedi


PREFACE

A man without practical knowledge is just like a rough diamond. To shine like a real

diamond one must have practical exposure of what he has learnt. For the management

students, theoretical knowledge is just like lock without key, so practical knowledge is

of utmost importance.

It is quite true that world outside; your cozy home is many times quite different from

what you have perceived. Similarly it is possible that theoretical knowledge acquired

in the classroom may differ from the practical knowledge.

As a curriculum part of M.B.A. course, I have taken my practical training at ICICI

Direct.com at Jetpur.

It is my pleasure to present this project work after I had finished my summer training

at ICICI Direct.com. This training has expanded my horizon of knowledge in practical

as well as theoretical, which is vital for student in management level studies. Only the

basic understanding of the principles of management is not sufficient but their

application is also equally important.

I worked at Sub Branch, Jetpur and have tried my best to collect information on

Marketing, Finance, Operation and Human Resource by visiting each of the

departments.


ACKNOWLEDGEMENT

To acknowledge is very great way to show your gratitude towards the persons who

have contributed in your success in one or other way.

At the very outset of the training I deem it is my pious duty to express my sincere

thanks to Mr. Hitesh A. Bosmiya & Mr. Hiren A. Bosmiya for his continuous

guidance and supervision during the training period.

My most profound thanks to my revered guider Mr. Nilesh Gami whose generous

and able guidance has always been an unfailing source of inspiration throughout my

training period.

DATE:

PLACE: SUPEDI

Yours faithfully,

BHATT JATIN S.


DECLARATION

I the Undersigned Mr. BHATT JATIN SURESHBHAI, student of M.B.A – Sem. III

hereby declare that the project work presented in this report is my own work and has

been carried out under supervision and guidance of Mr. Nilesh Gami, Assistant

Professor of EVA INSTITUTE OF MANAGEMENT, SUPEDI affiliated with G.T.U.

The objective of the training undertaken is to know all the department of the

organization and to acquire practical knowledge in particular field.

This work has not been previously submitted to any other university for any other

examination.

DATE:

PLACE: SUPEDI


EXECUTIVE SUMMARY

ICICI Direct.com is the largest equity house in the country providing end-to-end

solutions (including web-based services) through the largest non-banking distribution

channel so as to fulfill all the diverse needs of retail and corporate customers. ICICI

Direct.com has a dominant position in its core segments of its operations - Corporate

Finance including Equity Capital Markets Advisory Services, Institutional Equities,

Retail and Financial Product Distribution.

With a full-service portfolio, a roster of blue-chip clients and performance second to

none, we have a formidable reputation within the industry. Today ICICI Securities is

among the leading Financial Institutions both on the institutional as well as retail side.

ICICI Direct.com, the step-down wholly owned US subsidiary of the company is a

member of the National Association of Securities Dealers, Inc. (NASD). As a result of

this membership, ICICI Securities Inc. can engage in permitted activities in the U.S.

securities markets. These activities include Dealing in Securities and Corporate

Advisory Services in the United States and providing research and investment advice

to US investors.

ICICI Direct.com is also registered with the Financial Services Authority, UK (FSA)

and the Monetary Authority of Singapore (MAS).


INDEX

Sr.No. Particulars Pg.no.

1. General Information

Basic Information 10

Board of Directors 11

Brief History of the company 12

Competitors 25

Tips for Trading On-line 27

Clarity of Contingency Measures 28

SWOT Analysis 29

Current Status of Industry 31

Subsidiary co.‘s of ICICI 33

2. Marketing Department

Introduction 35

Organizational Structure 37

Products 38

Product Life Cycle 56

Promotion Mix 58

Marketing Strategy 62

3. Human Resource Department

Introduction 65

Organizational Structure 66

Human Resource Planning 68

Recruitment Resources 69

Selection Process 71

Training & Development Policy 75

Promotion & Transfer Policy 77

Welfare Policy 78


4. Finance Department

Introduction 85

Capitalization & Capital Structure 89

Management of Fixed Assets 91

Capital Budgeting 92

Working Capital Management 93

Financial Highlights 95

Ratio Analysis 96

5. Research Methodology

Research Objective 101

Research Design 102

Comparative Analysis 105

Limitations of the study 118

Research findings 119

Recommendations & Suggestions 120

Conclusion 122

Bibliography 123


GENERAL

INFORMATION


BASIC INFORMATION

NAME :- ICICI Securities

REGISTERED OFFICE :- Landmark',

Racecourse Circle,

Alkapuri,

Vadodara-390007

Gujarat, India

TEL :- 339923/24/25

FAX :- 339926

WEBSITE :- www.ICICIdirect.com

CHIEF EXE. NAME :- Ms. Chanda Kochar

BUSINESS GROUP :- ICICI GROUP

INCORPORATION DATE :- 05/08/1997

AUDITORS :- S.R. BATLIBOI & Co.

C.A.

BANKERS :- ICICI BANK


BOARD OF DIRECTORS

Ms. Chanda Kochhar, Chair person

Mr. Ketan Patel

Mr. Narendra Murkumbi

Dr. Uday Chitale

Mr. Pravin Vohra

Mr. Sanjay Chatterjee

Mr. Madhabi Puri-Buch, Managing Director & CEO

Mr. A. Murugappan, Executive Director

Mr. Anup Bagchi, Executive Director


BRIEF HISTORY OF THE COMPANY

HISTORY OF ICICI DIRECT.COM

The ICICI Securities is mainly dealing in the security market. The security market of

India is very widely spreaded and still it is growing at a good rate. The major

institutions which are involved in the security market are performing the role of the

intermediaries for ―Buyers‖ and ―Sellers‖ in the market. The service provided by the

mediator is easy transaction between two parties.

Before 1998 the security market was dealing in physical format. There were share

brokers who performed the job of the intermediaries between the two parties. The

main markets were the stock exchanges situated in different parts of the country. The

brokers were purchasing and selling the securities on behalf of the investors. The

major stock exchanges are as follow.

NATIONAL STOCK EXCHANGE {N.S.E.}:

NSE was set up in 1993 at Delhi to encourage stock exchange reforms through the

system modernization and competition. The NSE was following the screen based

trading system. The system through which the NSE is trading is known as the NEAT

[National Exchange for Automated Trading.]. It allows members across the country to

trade simultaneously and with full efficiency.

As on December 1996 there were around 1200 companies traded on NSE. Out of

1200 companies only 535 companies were listed and rest were permitted companies.

The market capitalization as on January was 4.2 trillion. The total turn over of the

NSE as on January was around Rs. 2, 16,000 crores. This was more than nine times

than the turn over of 1995, which was Rs. 27,000 crores.


BOMBAY STOCK EXCHANGE {B.S.E.}:-

The BSE is situated at Mumbai more popularly known as the ―DALAL STREET‖. As

the Mumbai is the trading capital of the nation, most of the companies prefer to list

their shares in the BSE. The BSE had an extra age over the NSE in number of the

companies listed. As on December 1996, only 1200 companies were traded on the

NSE where as on BSE on the same day 5999 companies were traded. But since

November 1995 trading volumes on NSE is more than the BSE. The BSE is also a

major party who has contributed to the development of security market in India.

OVER THE COUNTER EXCHANGE OF INDIA {O.T.C.E.I.}:

The OTCEI was established in the October 1990. It was jointly promoted by

following institutions.

Unit Trust of India

ICICI

IDBI

SBI capital Market Ltd.

IFCI

GIC

The OTCEI is an exchange where all the activities are computerized. It includes the

trading, billing, payments etc…… This had opened a new horizon for the security

market in India. As all the transactions were done through computers, it improved the

speed, efficiency and transparency of the transaction.

Overview

ICICI Bank is India's second-largest bank with total assets of about Rs.1,67,659

crores at March 31, 2005 and profit after tax of Rs. 2,005 crores for the year ended


March 31, 2005 (Rs. 1,637 crores in fiscal 2004). ICICI Bank has a network of about

560 branches and extension counters and over 1,900 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-life insurance, venture

capital and asset management. ICICI Bank set up its international banking group in

fiscal 2002 to cater to the cross border needs of clients and leverage on its domestic

banking strengths to offer products internationally. ICICI Bank currently has

subsidiaries in the United Kingdom, Canada and Russia, branches in Singapore and

Bahrain and representative offices in the United States, China, United Arab Emirates,

Bangladesh and South Africa.

ICICI Bank's equity shares are listed in India on 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).

As required by the stock exchanges, ICICI Bank has formulated a Code of Business

Conduct and Ethics for its directors and employees.

At April 4, 2005, ICICI Bank, with free float market capitalization* of about Rs.

308.00 billion (US$ 7.00 billion) ranked third amongst all the companies listed on the

Indian stock exchanges.

ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial

institution, and was its wholly-owned subsidiary. ICICI's shareholding in ICICI Bank

was reduced to 46% through a public offering of shares in India in fiscal 1998, an

equity offering in the form of ADRs listed on the NYSE in fiscal 2000, ICICI Bank's

acquisition of Bank of Madura Limited in an all-stock amalgamation in fiscal 2001,

and secondary market sales by ICICI to institutional investors in fiscal 2001 and fiscal

2002. ICICI was formed in 1955 at the initiative of the World Bank, the Government

of India and representatives of Indian industry. The principal objective was to create a

development financial institution for providing medium-term and long-term project

financing to Indian businesses. In the 1990s, ICICI transformed its business from a

development financial institution offering only project finance to a diversified


financial services group offering a wide variety of products and services, both directly

and through a number of subsidiaries and affiliates like ICICI Bank. In 1999, ICICI

become the first Indian company and the first bank or financial institution from non-

Japan Asia to be listed on the NYSE.

After consideration of various corporate structuring alternatives in the context of the

emerging competitive scenario in the Indian banking industry, and the move towards

universal banking, the managements of ICICI and ICICI Bank formed the view that

the merger of ICICI with ICICI Bank would be the optimal strategic alternative for

both entities, and would create the optimal legal structure for the ICICI group's

universal banking strategy. The merger would enhance value for ICICI shareholders

through the merged entity's access to low-cost deposits, greater opportunities for

earning fee-based income and the ability to participate in the payments system and

provide transaction-banking services. The merger would enhance value for ICICI

Bank shareholders through a large capital base and scale of operations, seamless

access to ICICI's strong corporate relationships built up over five decades, entry into

new business segments, higher market share in various business segments,

particularly fee-based services, and access to the vast talent pool of ICICI and its

subsidiaries. In October 2001, the Boards of Directors of ICICI and ICICI Bank

approved the merger of ICICI and two of its wholly-owned retail finance subsidiaries,

ICICI Personal Financial 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.

Free float holding excludes all promoter holdings, strategic investments and cross

holdings among public sector entities.

ICICI group is a dynamic business group in financial sector of India. It has got growth

at a very good speed and is still growing at better speed. The performance of the bank

is consistently growing at a very good speed. This is the reason that ICICI bank has


been ranked 2nd in all over performance in India. It is 2nd no bank after SBI group

bank which is leading the bank sector. But still in the private sector banks ICICI is

leading the market leaving behind banks like HDFC, Standard Chartered, Kotak

Mahindra etc...

The history of growth of the ICICI is as follow in sequence of years.

1955:

The Industrial Credit and Investment Corporation of India Limited (ICICI)

incorporated through the collective efforts of the World Bank, the Government of

India and representatives of Indian industry. Its main aim was to provide medium

term and long term loans to the Indian business units. Mr.A.Ramaswami Mudaliar

was been elected as the first Chairman of ICICI Limited

1956:

ICICI declared its first Dividend at 3.5%. Within one year of the operation, bank

started earning profit and declared dividend.

1958:

Mr.G.L.Mehta was appointed the 2nd Chairman of ICICI Ltd.

1960:

ICICI building at 163, Back Bay Reclamation was inaugurated.

1967:

ICICI made its first debenture issue for Rs.6 crore, which was oversubscribed.

1969:

First two regional offices in Calcutta and Madras were opened.

1972:

Second entity in India to set-up merchant banking services.


1977:

ICICI sponsors the formation of Housing Development Finance Corporation.

Managed its first equity public issue

1978:

Mr. James Raj appointed as the fourth Chairman of ICICI.

1979:

Mr.Siddharth Mehta appointed as the fifth Chairman of ICICI.

1982:

Becomes the first ever Indian borrower to raise European Currency Units.

ICICI commences leasing business.

1984:

Mr. S. Nadkarni appointed as the sixth Chairman of ICICI.

1985:

Mr.N.Vaghul appointed as the seventh Chairman and Managing Director of ICICI.

1986:

ICICI first Indian Institution to receive ADB Loans. First public issue by an Indian

entity in the Swiss Capital Markets.

ICICI along with UTI sets up Credit Rating Information Services of India Limited,

(CRISIL) India's first professional credit rating agency.

ICICI promotes Shipping Credit and Investment Company of India Limited. (SCICI)

The Corporation made a public issue of Swiss Franc 75 million in Switzerland, the

first public issue by any Indian equity in the Swiss Capital Market.

1987:


ICICI signed a loan agreement for Sterling Pound 10 million with Commonwealth

Development Corporation (CDC), the first loan by CDC for financing projects in

India.

1988:

ICICI promotes TDICI - India's first venture capital company.

1993:

ICICI sets-up ICICI Securities and Finance Company Limited in joint venture with J.

P. Morgan.

ICICI sets up ICICI Asset Management Company.

1994:

ICICI sets up ICICI Bank.

1996:

Mr.K.V.Kamath appointed the Managing Director and CEO of ICICI Ltd.

1997:

The name "The Industrial Credit and Investment Corporation of India Limited‖ was

changed to "ICICI Limited".

ICICI announces takeover of ITC Classic Finance.

1998:

Introduced the new logo symbolizing a common corporate identity for the ICICI

Group.

ICICI announces takeover of Anagram Finance.

1999:

ICICI launches retail finance - car loans, house loans and loans for consumer

durables.

ICICI becomes the first Indian Company to list on the NYSE through an issue of

American Depositary Shares.


2000:

ICICI Bank becomes the first commercial bank from India to list its stock on NYSE.

ICICI Bank announces merger with Bank of Madura.

2001:

The Boards of ICICI Ltd and ICICI Bank approved the merger of ICICI with ICICI

Bank.

2002:

ICICI Ltd merged with ICICI Bank Ltd to create India‘s second largest bank in terms

of assets.

ICICI assigned higher than sovereign rating by Moody‘s.

ICICI Bank launched India‘s first CDO (Collateralized Debt Obligation) Fund named

Indian Corporate Collateralized Debt Obligation Fund (ICCDO Fund).

"E Lobby", a self-service banking centre inaugurated in Pune. It was the first of its

kind in India.

ICICI Bank launched Private Banking.

1100-seat Call Centre set up in Hyderabad

ICICI Bank Home Shoppe, the first-ever permanent aggregation and display of

housing projects in the county, launched in Pune,

ATM-on-Wheels, India‘s first mobile ATM, launched in Mumbai.

2003:

The first Integrated Currency Management Centre launched in Pune.

ICICI Bank announced the setting up of its first ever offshore branch in Singapore.

The first offshore banking unit (OBU) at Seepz Special Economic Zone, Mumbai,

launched.

ICICI Bank‘s representative office inaugurated in Dubai.

Representative office set up in China. : ICICI Bank‘s UK subsidiary launched.

India‘s first ever "Visa Mini Credit Card", a 43% smaller credit card in dimensions

launched.

ICICI Bank subsidiary set up in Canada.

Temasek Holdings acquired 5.2% stake in ICICI Bank.

ICICI Bank became the market leader in retail credit in India.


2004:

Max Money, a home loan product that offers the dual benefit of higher eligibility and

affordability to a customer, introduced.

Mobile banking service in India launched in association with Reliance Infocomm.

India‘s first multi-branded credit card with HPCL and Airtel launched.

Kisan Loan Card and innovative, low-cost ATMs in rural India launched.

ICICI Bank and CNBC TV 18 announced India‘s first ever awards recognizing the

achievements of SMEs, a pioneering initiative to encourage the contribution of Small

and Medium Enterprises to the growth of Indian economy.

ICICI Bank opened its 500th branch in India.

ICICI Bank introduced partnership model wherein ICICI Bank would forge an

alliance with existing micro finance institutions (MFIs). The MFI would undertake the

promotional role of identifying, training and promoting the micro-finance clients and

ICICI Bank would finance the clients directly on the recommendation of the MFI.

ICICI Bank introduced 8-8 banking wherein all the branches of the Bank would

remain open from 8a.m. to 8 p.m. from Monday to Saturday.

ICICI Bank introduced the concept of floating rate for home loans in India.

2005:

First rural branch and ATM launched in Uttar Pradesh at Delpandarwa, Hardoi.

"Free for Life" credit cards launched wherein annual fees of all ICICI Bank Credit

Cards were waived off.

ICICI Bank and Visa jointly launched mChq – a revolutionary credit card on the

mobile phone.

Private Banking Masters 2005, a nationwide Golf tournament for high networth

clients of the private banking division launched. This event is the largest domestic

invitation amateur golf event conducted in India.

First Indian company to make a simultaneous equity offering of $1.8 billion in India,

the United States and Japan.

Acquired IvestitsionnoKreditny Bank of Russia.

ICICI Bank became the largest bank in India in terms of its market capitalization.


ICICI Bank became the first private entity in India to offer a discount to retail

investors for its follow-up offer.

2006:

ICICI Bank became the first Indian bank to issue hybrid Tier-1 perpetual debt in the

international markets.

ICICI Bank subsidiary set up in Russia.

Introduced a new product - ‗NRI smart save Deposits‘ – a unique fixed deposit

scheme for nonresident Indians.

Representative offices opened in Thailand, Indonesia and Malaysia.

ICICI Bank became the largest retail player in the market to introduce a biometric

enabled smart card that allow banking transactions to be conducted on the field. A

low-cost solution, this became an effective delivery option for ICICI Bank‘s micro

finance institution partners.

Financial counseling centre Disha launched. Disha provides free credit counseling,

financial planning and debt management services.

Bhoomi puja conducted for a regional hub in Hyderabad, Andhra Pradesh.

2007:

ICICI Bank‗s USD 2 billion 3-tranche international bond offering was the largest

bond offering by an Indian bank.

Sangli Bank amalgamated with ICICI Bank.

ICICI Bank raised Rs 20,000 crore (approx $5 billion) from both domestic and

international markets through a follow-on public offer.

ICICI Bank‘s GBP 350 million international bond offering marked the inaugural deal

in the sterling market from an Indian issuer and also the largest deal in the sterling

market from Asia.

Launched India‘s first ever jewellery card in association with jewelry major Gitanjali

Group.

ICICI Bank became the first bank in India to launch a premium credit card -- The

Visa Signature Credit Card.

Foundation stone laid for a regional hub in Gandhinagar, Gujarat.


Introduced SME Toolkit, an online resource centre, to help small and medium

enterprises start, finance and grow their business.

ICICI Bank signed a multi-tranche dual currency US$ 1.5 billion syndication loan

agreement in Singapore.

ICICI Bank became the first private bank in India to offer both floating and fixed rate

on car loans, commercial vehicles loans, construction equipment loans and

professional equipment loans.

In a first of its kind, nation wide initiative to attract bright graduate students to pursue

a career in banking, ICICI Bank launched the "Probationary Officer Programme".

Launched Bank@home services for all savings and current a/c customers residing in

India

ICICI Bank Eurasia LLC inaugurated its first branch at St Petersburg, Russia.

2008:

ICICI Bank enters US, launches its first branch in New York

ICICI Bank enters Germany, opens its first branch in Frankfurt

ICICI Bank launched iMobile, a breakthrough innovation in banking where

practically all internet banking transactions can now be simply done on mobile

phones.

ICICI Bank concluded India's largest ever securitization transaction of a pool of retail

loan assets aggregating to Rs. 48.96 billion (equivalent of USD 1.21 billion) in a

multi-tranche issue backed by four different asset categories. It is also the largest deal

in Asia (ex-Japan) in 2008 till date and the second largest deal in Asia (ex-Japan &

Australia) since the beginning of 2007.

ICICI Bank launches ICICIACTIVE - Banking Interactive Service - along with

DISHTV, which will allow viewers to see information about the Bank's products and

services and contact details on their DISHTV screens.

ICICI Bank and British Airways launch co-branded credit card, which is designed to

earn accelerated reward points to the card holders with every British Airways flight or

by spending on everyday purchases

ICICI Bank Board appoints Mr K. V. Kamath as non-executive Chairman and Ms Chanda

Kochhar as Managing Director & CEO effective May 1, 2009, while the existing non-executive

Chairman Mr N Vaghul retires after completing his term on April 30, 2009


2009:

ICICI bank ties up with BSNL Cell One for bill payments, it will facilitate bill

payment for BSNL Cell One users through www.icicibank.com across all the 27

circles of BSNL.

ICICI Bank Limited acting through its Hong Kong Branch (ICICI Bank) signed an

agreement on Export Credit Line totaling up to US$100 million with the Japan Bank

for International Cooperation (JBIC) which constitutes the international wing of Japan

Finance Corporation.

ICICI Bank Limited acting through its Hong Kong Branch (ICICI Bank) signed a loan

agreement with the Export-Import Bank of China (China Exim) for USD 98 million

under the Two- step Buyer Credit (Export Credit) arrangement. ICICI Bank is the first

Indian Bank to have entered into this arrangement with China Exim

ICICI Bank with Singapore Airlines launched ―ICICI Bank Singapore Airlines Visa

Platinum Credit Card‖, the Card has exclusive privileges especially designed for the

members.

ICICI Bank is India's second-largest bank with total assets of about Rs.125, 229 crore

and a network of over 450 branches and offices and about 1790 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-life

insurance, venture capital and asset management. ICICI Bank's equity shares are

listed in India on stock exchanges at 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 f i n an c i a l institution for providing medium-term and long-term project

financing to Indian businesses. In the 1990s, ICICI transformed its business from a

development financial institution offering only project finance to a diversified

financial services group offering a wide variety of products and services, both directly

and through a number of subsidiaries and affiliates like ICICI Bank. In 1999, ICICI

become the first Indian company and the first bank or financial institution from non-

Japan Asia to be listed on the NYSE.

After consideration of various corporate structuring alternatives in the context of the

emerging competitive scenario in the Indian banking industry and the move towards

universal banking, the managements of ICICI and ICICI Bank formed the view that

the merger of ICICI with ICICI Bank would be the optimal strategic alternative for

both

entities, and would create the optimal legal structure for the ICICI group's universal

banking strategy. The merger would enhance value for ICICI shareholders through the

merged entity's access to low-cost deposits, greater opportunities for earning fee-

based income and the ability to participate in the payments system and provide

transaction-banking services. The merger would enhance value for ICICI Bank

shareholders through a large capital base and scale of operations, seamless access to

ICICI's strong corporate relationships built up over five decades, entry into new

business segments, higher market share in various business segments, particularly fee-

based services, and access to the vast talent pool of ICICI and its subsidiaries. In

October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger

of ICICI and two of its wholly-owned retail finance subsidiaries, ICICI Personal

Financial 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.


COMPETITORS

ICICI Securities is providing share trading facilities. The ICICI was the 1st in India to

introduce concept of online share trading. Now in the market there are few players

who are providing the share trading facilities. Some of them are mentioned below

who are providing some competition in the market.

1. HDFC Securities:-

HDFC bank is also one of the growing bank in India. It has also given new definition

to banking services with providing extra services than the traditional banking services.

HDFC was in housing finance initially but in last few years it has widen its scope of

working area. It has entered in almost all the sectors in which ICICI is dealing.

HDFC is providing the demat account to its customers. The HDFC is not providing

the online share trading like ICICI. Here it stays slightly behind the ICICI bank.

2. Kotak Street :-

Kotak Street is also emerging as a good competitor to all the share trading service

providing company. It is also entering in the all the financial services like the ICICI

and HDFC bank. The Kotak Street is relatively new compared to ICICI and HDFC in

the field of share trading. Initially when the Kotak group had not entered in banking

field it had collaboration with HDFC for the saving accounts of the customers who

had or wanted to open the share trading account with the Kotak street.

But now as the Kotak group has its own bank, all the saving accounts are opened in

the Kotak bank. The Kotak group has also entered in the field of insurance with name

―OM KOTAK MAHINDRA LIFE INSURANCE‖. The Kotak group has also entered

in the MUTUAL FUND sector also.


3. India bulls

India bulls are also one of the companies which is providing the share trading facility.

It is a company which is providing the share trading facility only. It does not provide

any saving account facility to its customer.

4. Motilal Oswal

Motilal Oswal is also one of the competitiors of icici direct.com. This Company is

also providing online trading facilities with which customer can save their time and

they will operate the programm on their computer.

5. Marwadi

This unit has paved their feet in each and every town because of the cheaper rate of its

brokerage. They are not providing unlimited facility for trading.

6. 5paisa.com

5Paisa is the trade mane of India Infoline Securities Private Limited (5paisa), member

of National Stock Exchange and The Stock Exchange, Mumbai. 5paisa is a wholly

owned subsidiary of India Infoline Ltd. India‘s leading and most popular finance and

investment portal. 5paisa has emerged as one of leading players in e-broking space in

India.

7. Sharekhan

Sharekhan, India‘s leading stock broker is the retail arm of SSKI, and offers you

depository services and trade execution facilities for equities, derivatives and

commodities backed with investment advice tempered by decades of broking

experience.


Tips for trading online

1. Know thyself: In other words, know the level of risk you are taking and

whether it suits your investment personality and goals.

2. Know what you're buying: Research and understand what kind of security

you are trading and whether it suits your investment needs.

3. Is your computer up to speed? Dated technology at your end can create

delays in executing trades and receiving confirmations.

4. Exercise discipline: If you are buying a volatile stock, use a limit order to

protect you from sharp, upward price movements. By submitting an order

to buy a stock at a specific price, if the price rockets no purchase is made.

This protects you from paying much more than you anticipated.

5. Know your options: If you can't get access to your account online, know

your options for placing a trade. Most online brokers, for example, offer

alternatives for placing trades such as touch-tone phone trades, faxing, or

the old-fashioned way - speaking to a broker by telephone. But be aware

that these options may increase your costs.

6. Confirmations: Investors sometimes mistakenly assume their trade orders

weren't executed and submit another order. Check with the online firm on

what procedures to follow to receive confirmations.

7. Ensure registration of the online broker

8. Make sure that the online broker, through whom online trading is

conducted, is registered with the securities regulator.

9. Before selecting an online brokerage firm, look at the various firms

offering this service, and rate them on the basis of speed of execution and

customer service.

10. Acquaint yourself with the rules of the market

11. When trading in foreign securities, it is important to acquaint oneself with

the regulations applicable to the concerned markets. However currently,

trading in foreign securities is not allowed in India.

12. Clarity on working procedures of the broker

13. The investor must be clear on the following aspects relating to the working

of the broker:

14. Procedure for opening the stock broking accounts


Clarity of contingency measures

1. Before doing any online trading, one must be clear about the contingency

measures, which will be adopted by the broker in the event of failure

caused due to system breakdown and/or high network traffic.

2. Obtain confirmation from the broker

3. Always obtain a confirmation from the broker for transactions relating to

placement, amendment and cancellation of orders.

4. Confirm source of information and ensure its credibility

5. Always confirm the source of information available online i.e. whether it

is obtained from brokers, a corporate insider or an amateur investor. This

will help in determining the validity of the information available online.

6. Use personal research and judgment for effective trading

7. The investor must not only rely on the status of stocks as posted online,

but also use his own research results, for taking a trading decision. Also,

prior to actual trading, the investor must be fully aware as to why he is

buying or selling specific stocks and what is the risk involved in the

investment decision. Based on his judgment as well as the status of stocks

posted on the net, a prudent investment in the shares must be made.


SWOT ANALYSIS

SWOT analysis is done by all the companies to be aware about the competitor and

new changes in the market. The SWOT analysis leads the company to take strategic

decisions. Company always highlight its strength, try to hide own weakness and in the

same way try to find out strength and weakness of the competitors.

S – Strength

Strength of the ICICI Securities is the main feature of the service. As it gives 3 in 1

account to the customer, the ease to trade at your convenient time is the main strength

of the ICICI Direct. Following are some of the strong points of the company.

Convenience of time to trade

Faster transaction

Paperless work

3 in 1 account facility so all work done at one place

The bank has strength of the latest technologies and the most modern

banking channels as net banking and the schemes such as young saver

accounts also.

The young and energetic staff of the bank is also one of the strengths.

W- Weaknesses

Weakness of company is fond out to remove it and then make the product or service

better than current status. Each and every product and service has weakness. It is just

like two side of the coin, if you have strength then you have weakness.

The weakness of the ICICI Direct.com can be said its high charges

compared to other companies.


O – Opportunity

Opportunity of the company is with the growth of volume of share trading and if

company decides to reduce the prices to some extent then a new market segment will

come up as a customer of the service.

Jetpur, being the big industrial city of Saurashtra region the Bank has

enough of opportunities to flourish its business here.

ICICI Bank can also grab the opportunity of establishing its market in the

nearby towns and villages by keeping their ATM machines and also by

sending their marketing executives to these remote places on some specific

days.

T – Threat

Threat for the company can be considered as following.

Growing competition

Change in government rules which is negative for stock market

Low prices of local brokers

Low awareness of computer in public

The other threat of the new entrants in the market will take up the share

from them.

Now a days many of the financing companies are entering the Jetpur‘s

market, which is one of the biggest threat for the Banks as they provide the

finance to the customers at very less rates and also at the quickest.


CURRENT STATUS OF THE INDUSTRY

The security market in India has developed a lot in last 5 to 7 years. The development

is due to the increasing awareness among the people; developing communicational

media and most importantly change in the way of transaction i.e. on line trading of

securities. BSE Online Share Trading ―B.O.L.T.‖ has brought revolution in the

security market.

Introduction of private banks in security market dealing and real estate business have

brought the efficiency and competition in the market. Mutual funds are also one of the

major elements which have influenced the growth of security market. Foreign

Investment Institution [F.I.I.] and Foreign Direct Investment [F.D.I.] has also

contributed in the growth of the security market in India.

Currently in the security market following securities are been traded by the investors,

institutional buyers and foreign investors.

Shares [ Equity shares & preference shares ]

Debentures

Government Bonds

Mutual Funds

Commercial papers

The main feature of today‘s market is the Dematerialized form of almost all securities.

Previously the securities were available in materialized form i.e. in papers but now it

is available in Dematerialized form. It means securities are not given in paper format

but in ELECTRONIC format it is been directly credited in purchaser‘s demat account.


The main benefits of Dematerialized form are as follow.

Chances of fraud are minimized.

Physical delivery of security is terminated

No chance of theft of security

Quick hand over and less transaction time.


SUBSIDIARY COMPANIES

At March 31, 2008, ICICI Bank had 17 subsidiaries as listed below:

Domestic Subsidiaries

ICICI Securities Limited

ICICI Securities Primary Dealership Limited

ICICI Prudential Life Insurance Company Limited

ICICI Lombard General Insurance Company Limited

ICICI Prudential Asset Management Company Limited

ICICI Prudential Trust Limited

ICICI Venture Funds Management Company Limited

ICICI Home Finance Company Limited

ICICI Investment Management Company Limited

ICICI Trusteeship Services Limited

International Subsidiaries

ICICI Bank UK PLC

ICICI Bank Canada

ICICI Wealth Management Inc.1

ICICI Bank Eurasia Limited Liability Company

ICICI Securities Holdings Inc.2

ICICI Securities Inc.3

ICICI International Limited


MARKETING

DEPARTMENT


INTRODUCTION

As we know today in this competitive era marketing plays an important role for any

business to be with the market. As each and every small business should know skill of

marketing as it is one of the most important part of management. So for every

company it is important to have separate marketing department. We can define

marketing as an activity of satisfying human need by process of exchanging goods

and services from producer to consumers. The success of organization depends upon

the marketing activity.

M ar k e t i n g involves activities related to the products. The activity which are done

to satisfy customer need in better way, it includes activities such advertising,

publicity, marketing research, distribution of products and services, sales promotion

efforts etc. in ICICI Securities at main branch Rajkot the marketing of its product is

done by the AUM & UM and schemes provided by the company.

Market Performance of ICICI Bank

In year 2003-04 ICICI Bank d ev e l op ed in the business of the bank, ICICI Bank has

surpassed HDFC Bank, a major player in the home loan market. It has a market share

of about 27% of the total market of Rs.500, 000 cr. The Muthoot Group, one of the

largest non-banking financing companies, has signed a memorandum of

understanding with ICICI Lombard, a subsidiary of ICICI bank, to enter into the

general insurance distribution market. In September 2004, Mutual Funds increased

their holdings in ICICI Bank. The major investors being Franklin Templeton, UTI

Mutual Fund and HDFC Mutual Fund.

ICICI has launched the ―Easy Deposit Card‖ which charges an interest of 0.99% per

month, the lowest of the interest rates charged by any bank. The card is issued against

a fixed deposit, which effectively makes it secured loan. This sets it apart from the

regular credit cards, which take the form of unsecured credit. In September 2004,


ICICI bank initiated talks with private equity investors and foreign banks to sell its

20.44% stake in Federal Bank.

The bank has increased its international presence by inaugurating a representative

branch in Dhaka in August 2004. The Dhaka office would facilitate the trade

relationship between the two countries and enable the bank to increase its

participation in India‘s financial transactions with Bangladesh. At that, time bank

launched a powerful banking service package, called ―Hello Canada Newcomers

Account‖ designed to provide instant access to banking services in Canada to Indians

migrating to that country.

ICICI Bank has launched an interactive mobile banking service in India in association

with India‘s largest mobile service provider, Reliance Infocomm.

The growth in net interest income was due to the fall in interest expenses. Another

strong reason for the profits of the bank is its strong advance in the retail business.


ORGANISATIONAL STRUCTURE

Marketing department consist of different persons with their unique position. Each

and every company has its own marketing department. Marketing organization is

consisting of people, activity, authority, responsibility and relationship for the purpose

of achieving marketing objectives.

ICICI Securities at Rajkot main branch is working at lower level means it is not a big

company and so it does not have its own different marketing department. Here ICICI

Securities Bombay is making the policy related to marketing and the branch is

following that policy.

ICICI Securities is having a simple organizational structure. As the structure is simple

the authority and responsibility is also clearly defined and smooth working of the

organization is possible. This structure is really helpful for the company to introduce

any new product as a clear communicational channel is existing in the company.

COUNTRY HEAD (MR. KARTIKEYAN)

REGIONAL HEAD (MR. ASHISH RATHOR)

UNIT MANAGER (MR. RONAK THAKKAR)

ASSISTANT UNIT MANAGER (MR. JAYESH VASANI)

TRAINEES


PRODUCTS

ICICI Securities is mainly dealing with share, stock, government bond, mutual fund

and IPO (initial public offer). ICICI Securities is providing mainly three type of

product with different facilities. The core product of ICICI Securities is demat

account. ICICI Securities is providing the core product with extra service of online

share trading to its customer as per their requirement.

There are three type of account in ICICI Securities. They are as follow:

1. Simple demat account

2. Wise investment

3. Direct.com

1. Simple Demat Account:-

The simple demat account is the most simple form of ICICI Securities product. It

gives a demat account to account holder. The customer can purchase and sell the

share, government bond, and debenture. In this account the customer is suppose to

deal in share market with the help of broker.

Following are the regulatory aspects of simple demat account.

Customer can deal only with help of broker.

No online share trading is allowed.

Account opining charge is Rs. 750

If customer does not have saving account in ICICI Bank then he or she

has to deposit Rs.5000 in the bank.

Statement of demat account is given free of cost to the customer per

quarter and if he or she wants monthly statement than Rs. 200 is charge

per annum.


Charges:

Account opening charge is Rs. 750

Per purchase customer has to pay 0.02% of the amount of purchase.

Minimum Rs. 20

Per sale customer has to pay 0.04% of the amount of sale. Minimum Rs.

20

Maintains charge of demat account is Rs. 350 per annum.

Script maintains charge 0.75 paisa per script per month.

Trade rejection charge is Rs. 50 per transaction rejected.

Limitation:

Online share trading is not available.

Transaction speed is very low compare to online share trading.

Other competitors are providing the same service at lower rate.

2. Wise Investment Account:-

The Wise Investment Account is some what advanced version of simple demat

account. This account gives the customer the freedom of doing online trading in

Government bonds, Initial Public Offers and Mutual funds. Again here the main

trading system is through the broker only.

Charges:

Account opining charge is Rs. 500

Per purchase customer has to pay 0.02% of the amount of purchase.

Minimum Rs. 20


Per sale customer has to pay 0.04% of the amount of sale. Minimum Rs.

20

Maintains charge of demat account is Rs. 350 per annum.

Script maintains charge 0.75 paisa per script per month.

Trade rejection charge is Rs. 50 per transaction rejected.

A saving account in ICICI BANK is necessary.

Limitation:

Online trading in equity is not allowed.

Transaction time is longer than online trading.

Portfolio is managed by broker, not by our self.

Unnecessary investment of Rs 5000 as balance in saving account.

3. Direct.com:

The most advanced version of share trading is ―Direct.com‖. It allows the trading

through internet and gives totally paperless work. It is the most effective way of doing

the share trading. ―Direct.com‖ allows the customer to work at his own. Means it

removes the broker and a terminal is given in hand of customer.

Charges:

Rs. 750 is taken as lifetime registration charge for using

ICICIDIRECT.COM.

Rs 5000 are to be maintained as quarterly average balance in saving

account.


The brokerage is taken on TURNOVER of three month. As the turnover

increase, brokerage rate comes down. The rate varies from 0.75 paisa to

0.25 paisa.

Limitation:

High brokerage charge for lower turnover


PRODUCTS:

ICICIdirect.com

DERIVATIVES IPOs

FUTURES

OPTIONS

BONDS EQUITY

Cash

Margin

BTST

Spot

Margin PLUS

SIP & SWP

Switch in /out

Transfer in

MUTUAL FUNDS

Purchases

Redemption


SITE MAP

ICICI direct.com

2) Trading

Quotes Charts News

1) Home Page

Market Commodity

Breaking News

Portfolio Tracker

Watch list

Net Worth

Portfolio Alerts

3) News

Sector Watch

Pick of the Weak

Technical Analysis

ICICIdirect learning dictionary


Icicidirect.com

4) Market page 5) Research Page

Weakly Overview

Super Movers

Mega Movers

End of the

day reports

My quotes

My Research

Company Snapshot

Multex Global

Industry News

Monthly Gainers

Stock Screener

Corpor. Info bank

Market Desktop


6) Personal

Finance page 7) Customer Service page

Risk Analysis

Asset Allocator

Customer Updates

Bills & Acc

Change Password

ICICIdirect.com

Customer Tools

Fee Schedules

Demo

Direct Alert

View Point


1. Trading in shares:

ICICIdirect.com offers you various options while trading in shares.

Cash Trading : This is a delivery based trading system, which is generally done with

the intention of taking delivery of shares or monies.

Margin Trading : You can also do an intra-settlement trading up to 3 to 4 times your

available funds, wherein you take long buy/ short sell positions in stocks with the

intention of squaring off the position within the same day settlement cycle.

Margin PLUS Trading : Through Margin PLUS you can do an intra-settlement

trading upto 25 times your available funds, wherein you take long buy/ short sell

positions in stocks with the intention of squaring off the position within the same day

settlement cycle. Margin PLUS will give a much higher leverage in your account

against your limits.

Spot Trading : This facility can be used only for selling your demat stocks which are

already existing in your demat account. When you are looking at an immediate

liquidity option, 'Cash on Spot' may work the best for you, On selling shares through

"cash on spot", money is credited to your bank a/c the same evening & not on the

exchange payout date. This money can then be withdrawn from any of the ICICIBank

ATMs.

BTST : Buy Today Sell Tomorrow (BTST) is a facility that allows you to sell shares

even on 1st and 2

nd day after the buy order date, without you having to wait for the

receipt of shares into your demat account.

CallNTrade®: CallNTrade® allows you to call on a local number in your city &

trade on the telephone through our Customer Service Executives. This facility is

currently available in over 11 major states across India.

Trading on NSE/BSE: Through ICICIdirect.com, you can trade on NSE as well as

BSE.


Market Order: You could trade by placing market orders during market hours that

allows you to trade at the best obtainable price in the market at the time of execution

of the order.

Limit Order: Allows you to place a buy/sell order at a price defined by you. The

execution can happen at a price more favorable than the price, which is defined by

you, limit orders can be placed by you during holidays & non-market hours too.

2. TRADE IN DERIVATIVES:

FUTURES

Through ICICIdirect.com, you can now trade in index and stock futures on the NSE.

In futures trading, you take buy/sell positions in index or stock(s) contracts having a

longer contract period of up to 3 months.

Trading in FUTURES is simple! If, during the course of the contract life, the price

moves in your favor (i.e. rises in case you have a buy position or falls in case you

have a sell position), you make a profit.

Presently only selected stocks, which meet the criteria on liquidity and volume, have

been enabled for futures trading.

Calculate Index and Know your Margin are tools to help you in calculating your

margin requirements and the index & stock price movements. The ICICIDIRECT

UNIVERSITY on the HOME page is a comprehensive guide on futures and options

trading.

OPTIONS

An option is a contract, which gives the buyer the right to buy or sell shares at a

specific price, on on the other hand, before a specific date. For this, the buyer has to

pay to the seller some money, which is called premium. There is no obligation on the

buyer to complete the transaction if the price is not favorable to him.


To take the buy/sell position on index/stock options, you have to place certain % of

order value as margin. With options trading, you can leverage on your trading limit by

taking buy/sell positions much more than what you could have taken in cash segment.

The Buyer of a Call Option has the Right but not the Obligation to Purchase the

Underlying Asset at the specified strike price by paying a premium whereas the Seller

of the Call has the obligation of selling the Underlying Asset at the specified Strike

price.

The Buyer of a Put Option has the Right but not the Obligation to Sell the Underlying

Asset at the specified strike price by paying a premium whereas the Seller of the Put

has the obligation of Buying the Underlying Asset at the specified Strike price.

By paying lesser amount of premium, you can create positions under OPTIONS and

take advantage of more trading opportunities.

3. Investing in Mutual funds:

ICICIdirect.com brings you the same convenience while investing in Mutual funds

also - Hassle free and Paperless Investing.

With the inclusion of Standard Chartered MF, you can now invest on-line in 10

mutual Funds through ICICIdirect.com. Prudential ICICI MF, JM MF, Alliance MF,

Franklin Templeton MF, Sundaram MF, Birla Sun Life MF, HDFC MF, Principal MF

and IL & FS MF are the Mutual Funds available for investment. You can invest in

mutual funds without the hassles of filling application forms or any other paperwork.

You need no signatures or proof of identity for investing.

Once you place a request for investing in a particular fund, there are no manual

processes involved. Your bank funds are automatically debited or credited while

simultaneously crediting or debiting your unit holdings.


You also get control over your investments with online order confirmations and

order status tracking. Get to know the performance of your investments through

online updation of MF portfolio with current NAV.

ICICIdirect.com offers you various options while investing in Mutual Funds:

Purchase: You may invest/purchase Prudential ICICI MF, JM MF, Alliance MF,

Franklin Templeton MF, Sundaram MF, Birla Sun Life MF, HDFC MF, Principal

MF, IL & FS MF and Standard Chartered MF without the hassles of filling

application forms.

Redemption: In addition to giving hassle-free paperless redemption, ICICIdirect.com

offers faster liquidity. You can redeem the mutual fund units through

ICICIdirect.com. The money will be credited to your bank account automatically 3

days after the order placement date.

Switch: To suit your changing needs you may wish to shift monies between different

schemes. You can switch your monies online from one scheme to another in the same

fund family without any hassles.

Systematic Investment plans (SIP): SIP allows you to invest a certain sum of money

over a period of time periodically. Just fill in the investment amount, the period of

investment and the frequency of investing and submit. ICICIdirect.com will do the

rest for you automatically investing periodically for you.

Systematic withdrawal plan: This allows you to withdraw a certain sum of money

over a period of time periodically.

Transfer-in: You can convert your existing Mutual funds into electronic mode

through a transfer-in request.

3. IPOs and Bonds Online:

You could also invest in Initial Public Offers (IPOs) and Bonds online without going

through the hassles of filling ANY application form/ paperwork.


Get in-depth analyses of new IPOs issues (Initial Public Offerings) which are about to

hit the market and analysis on these. IPO calendar, recent IPO listings,

prospectus/offer documents, and IPO analysis are few of the features, which help you,

keep on top of the IPO markets.

5. ContentFeatures:

There are a host of features on ICICIdirect.com that shall help you make informed

investment decisions.

We provide you with the indices of major world markets, nifty futures and ADR

prices of Indian scripts. Get daily share prices of all scripts, monthly and yearly

high/lows etc through Market Watch.

Get breaking news from CNBC and Reuters. Catch a glimpse of News Headlines

through our scrolling Direct News Headlines.

Get a snapshot of the latest developments in the markets through the day using

Market Commentary. You can get weekly snapshots also. Use Pick of the week,

which focuses on fundamental stocks with sound prospects.

Catch interviews, reactions and comments from industry leaders with CEO Call.

Track the movement of leading scrip‘s within a sector across 12 sectors using

Market@Desktop.

Equip yourself with our barometers. Market Barometer gives you in-depth

information of the weightages of shares on Nifty and Sensex. Get a glimpse of the

performance of various industry sectors through Industry Barometer.

Direct Technical Charts offer interactive charting with advanced indicators. Get a

bird's eye view of over 5000 companies at a single click using Company Snapshot.

Glance through analyst recommendations using Multex Global Estimates.

In case, you are not too comfortable with share trading, try our Learning Centre,

which is a tutorial on investments and My Research, that helps you to research a

stock better.


6. Personal Finance:

Use our Personal Finance section and get hold of tools that can help you plan your

investments, retirement, tax etc. Analyse your risk profile through the Risk Analyzer

and get a suitable investment portfolio plan using Asset Allocator.

7. Customer Service Features:

With 'ICICIdirect Customer Tools & Updates' you can trouble shoot all your

problems online.

Address your trading queries on-line through "Easy Mail". You can view and change

your profile or password on-line through General Profile option.

Get details of ICICI Centers, our sales and service offices, across India through

branch locator.

View your Account Statement and Bill Summary of your transactions online using

bills &accounts.

View your Digital Contract Notes instantly. View various charges through the Fee

Schedule option.

Give your feedback or viewpoint through the Viewpoint online.

Enroll yourself for various ICICIdirect Workshops through Register for Customer

Sessions.

Introduction of new products and services

ICICI SECURITIES introduced some innovative products by using their strong

technological capabilities through different schemes for customers. These schemes are


so unique and having different type of advantages for different customers. S 1 to S 9

schemes.

Another new thing about this company is that, they are having variety of unique

products for each type of investor. Either the customer is a day trader or an investor,

company is having products like MARGIN, MARGIN PLUS, BUY TODAY SELL

TOMMORROW (BTST), CALL AND TRADE ,CASH ON SPOT, CASH

TRADING, IPO‘S AND MF, SYSTEMATIC INVESTMENT PLAN, PORTFOLIO

TARCKER etc.

Dematerialization of Securities (Demat):-

Dematerialization is the process of converting the securities held in physical form

(certificates) to an equivalent number of securities in electronic form and crediting

the same to the investor’s dematting account. Dematerialized securities do not have

any certificate numbers or distinctive numbers and are delta only in quantity i.e. the

securities arefungible.

Dematerialization of your holdings is not mandatory. You can hold your securities

either in demat form or in physical form. You can also keep part of your holdings (in

the same scrip) in demat form & part in physical form. However, a select list of

securities announced by SEBI can be delivered only in demat form in Stock exchange

connected to NSDL.

SELL DEMATERIALISED SECURITIES:-

You can sell your dematerialized securities in any of the stock exchanges

linked to NSDL through a broker of your choice.

You give a delivery instruction to your DP for debit of your depository

account and credit of your broker‘s clearing member account.


On the pay-in day, your broker gives instruction to his DP for delivery to

clearing corporation/clearing house of the relevant stock exchange

The broker receives payment from the clearing corporation/clearing house.

You receive payment from the broker for the sale in the same manner you

would receive payment for a sale in the physical mode.

BUY DEMATIRIALIZED SECURITIES:-

You purchase securities in any of stock exchanges connected to NSDL

through a broker of your choice and make payment to your broker. Make

sure you tell your broker you want only demat shares.

Broker received credit in his clearing account with his DP on the day of

payout. He can immediately transfer these securities to your depository

account, provided your account is already active.

Broker gives instructions to his DP to debit his clearing member account

and credit your depository account.

Rematerialization:-

Rematerialization is the process of converting the securities held in electronic form

in a demat account to an equivalent number of securities in physical form

(certificates) after debiting the same from the demat account.

The Internet revolution has been changing the fundamentals of our society. It shapes

the way we communicate and the way we do business. It brings us closer and closer

to vital sources of information. It provides us with means to directly interact with

service-oriented computer systems tailored to our specific needs; therefore, we can

serve ourselves better by making our own decisions.


You may know that, historically, the share bazaar has usually given wise investors

higher returns on their money over the long term than any other form of investment.

And in these times of much lower interest rates on fixed income investments, shares

are probably looking more and more attractive as a place for you to put your money.

If you have done your homework, you know that the share bazaar is volatile. You

know that while many people have made fortunes overnight, many have also lost

them just as rapidly.

It is hugely important - critical even - that you go into the share market with your eyes

open. That you study it, know what makes it tick, understand what experts are talking

about when they discuss shares.

Unfortunately, many of the best experts talk a language all their own. It is very

difficult for someone who has not spent time learning that language to figure out what

they are saying.

Even more unfortunate is that by the time you learn the basics, you could wind up

broke.

Someone who knows what the dangers are knows how to get to the good stuff. Who

teaches you what the tools are and how to use them. Who can show you how to get

the information you need, and how to make it work for you. Who can take care of you

until you are ready to take care of yourself?

You need an expert guide, educator, personal trainer and facilitator.

Who can gives you the full benefit of its experience technology-based tools and

research, all modified and customized for the novice.

Who can gives you powerful, easy-to-use tools, on the web, or via ordinary phone

lines, that will help you as a stock market investor.


It teaches you with systematic demos at crucial stages - at the beginning, and when

you are ready to do your first trade -. Moreover, it gives you the services of a

dedicated customer support team.

It continues to support you with research by experts, delivered to you in simple, easy

to understand fashion.

ICICI direct.com makes the most of state-of the-art technology to deliver power,

speed and reliability. Through an easy-to-use interface, users are provided with the

same tools and advantages that the professionals enjoy.

With access to both the NSE & BSE, you are in the driver's seat when routing your

order to the best price on either of the exchanges. Icici direct.com has sophisticated

yet easy to use point and click order entry interface allows you to react more quickly

to the markets and make better decisions.

Keep an eye on the stocks you care about most with streaming, real-time quotes and

customizable market data. Color-coded price changes help you to spot trends and

react to them quickly.


PRODUCT LIFE-CYCLE

The concept of Product Life Cycle is very important for any company to decide about

future of its product. As a human takes birth, grows up, becomes mature and at the

end die, products also have the Product Life Cycle. The company considers the stage

of Product Life Cycle and then makes the promotion policies.

1. 2. 3. 4.

Introduction Growth Maturity Decline

1. Introduction Stage:-

This is the stage when the product is just entering in the market. In this stage the

company needs to make the maximum promotional efforts and advertisement to

establish the product in the market.

2. Growth stage:-

This is the stage where the market is aware about the product and now the sales and

profit are increasing. This stage allows the company to have a grip on the market.


3. Maturity Stage:-

The most important and longest part of the Product Life Cycle is the maturity stage.

As in this stage the company is getting the most number of the customer and the

market share of the company is stable. Now company starts innovating its product.

4. Decline stage:-

This is the stage where the product has lost its attractiveness and now people do not

prefer the product. Now the profit is down and sales are also declining.


PROMOTION-MIX

As we know in today‘s world having good quality product is not enough. As per the

Marketing concept – ―Even though your product is the best, people will not buy

enough of it, if enough efforts are not made to sell the product to the customer‖ So the

marketing has become an important part of the corporate world.

The marketing is mainly concerned with the manner in which a company is able to

sale its product or services. The ICICI Securities is engaged with the marketing of

demat accounts and its major policies are made by the head office at Mumbai. At

Rajkot branch, local stalls are done at various places to make promotion at local level.

Advertisement:-

Advertisement is one of the important parts of promotion policy of the company. As

we know, the advertisement has become very necessary for any company to survive in

this thought cut competition. ICICI Securities is not having separate television

Promotion Mix

Advertisement

Publicity

Personnel Selling

Sales Promotion


advertisement but as a part of ICICI, indirect advertisement is done. ICICI Securities

is targeting computer user as their target market, so its main advertisement is done

through internet.

Media:-

Media means ―The Way‖, through which the company is spreading its message. ICICI

Securities is using the Internet as its media which is one of the fastest media in

today‘s world.

The ICICI Group is making advertisement in many media. Following are some of it.

Television

News paper

Hoardings

Magazine

Brochures

Budget:-

Budget means the estimated amount to be invested behind any investment. The

advertisement budget is mainly prepared by the head office and advertisement in

television and national news paper is given by the head office. Local news paper

advertisement is given by the branch.

Types:-

There are many types of advertisement available to any company in today‘s world.

The company is using the different type of advertisement at different stage of product

life cycle.

The company is making use of different types of advertisement at different phases of

the product life cycle. Informative advertisement is done at introduction stage as it

creates awareness in public about the product. Persuasive advertisement is made in

introduction stage to create preference in mind of customer over the competitors‘


brand or product. Competitive advertisement is made to make comparison between

company product and competitor‘s product at growth stage of the product. Reminder

advertisement is made at maturity stage of the product. Here the company has already

established itself in the mind of customer and general public.

Sales promotion:-

Sales promotion is a key ingredient in marketing campaigns. It consists of a diverse

collection of incentive tools, mostly of short term which is designed to stimulate

quicker or greater purchase of a product.

Advertisement offers a reason to buy and sales promotion offers an incentive to buy.

Sales promotion tools [for consumers]

Samples

Coupons

Cash refunds

Prices off

Demonstrations

Sales promotion tools [for traders]

Prices off

Advertising and display allowances

Free goods

ICICI Securities is providing the sales promotion in following ways

Account opening charge refund if customer has any ICICI product which

is 6 months old.


Demonstration of product is made at bank as well as out of bank at regular

interval by executives.

Personal selling

As ICICI is selling the service and not a product , personal selling is more effective

and practical than other measures of increasing sale. The mouth to mouth publicity of

the service is the best publicity a company can get so to satisfy each and every

customer is priority of the company.

ICICI executives approach to the persons who have made query about the service and

they try to explain them each and every aspect of the service and its features.


MARKETING STRATEGY

Competing on Valuable Resources

Every bank has a collection of physical and intangible assets and capabilities that it

has developed over a period. ICICI is having such unique stock of resources for its

competitive advantage.

One of the ways in which a resource becomes inimitable is due to physical

uniqueness. Physical location of a branch of bank in the heart of the financial centre

of any city is a unique resource that cannot be replicated. Another example of an

inimitable resource is a strong Brand name. Even if a competitor spends billions of

rupees, it will find it difficult to acquire the trust and brand equity that customers

associate with.

Scarcity: For the resource to be valuable, it should be scarce or rare. A prime

example of such resources is the Human Resources. For a service industry such as

banking where human resources form a significant source of value addition,

possession of excellent quality work force generates a key competitive advantage.

ICICI SECURITIES is having such skilled human resources.

ICICIWEBTARDE see itself a very strong player of the market. As per Mr. N

VAGHUL, the chairperson, the financial sector will play a crucial role in India‘s

potential.

Mobilizing resources from households and canalizing these resources into areas

identified as development priorities was the main strategy ICICI adopted. Because of

their powerful resources of technology as well as human resource, they can compete

in this global era.

―We have a strong focus on communicating with our investor to explain our strategy

and performance and understand their perspectives. Our ability to raise capital and the


confidence that our investors have placed in us over the years have been critical to our

growth and new business initiatives.‖

Said KALPANA MORPARIA, DEPUTY MANAGING DIRECTOR of ICICI.

As far as marketing is concern, with ICICI Bank, we all know that how aggressively

the marketing activity of ICICI has done. Through different advertisements, through a

very strong background of technology and innovative product line.

ICICIWEBTRADE is having separate Marketing Division enriched with marketing

experts. As far as ICICIdirect.com is concern, the Regional Product Manager takes all

the decisions or in other word, you can say a branch head is the key person how to do

different activities regarding marketing.

The main product of ICICIWEBTRADE is an online account, and the unit is having

number of executives with proper training. These persons go in field and demonstrate

the product.


HUMAN

RESOURSE

DEPARTMENT


INTRODUCTION

Human Resource Management is one of the most important functional areas of any

company. As we know ―Even if we have latest technology, equipments and best

product in the market, but do not have proper human force to make effective

utilization, it is in vain.‖ So H.R.M. has become one of the most important aspects of

any company.

H.R.M. means management of human resource, making their proper development as

and when required. Previously it was known as ―Personnel Department‖. It had a

limited scope of recruiting the human force as and when required, but as the time has

passed the value of ―Human‖ has increased. Now management is considering the

human as human and not a factor of production.

One of the world famous people Mr. Henry Ford has said that ―YOU MANAGE

YOUR MEN AND YOUR MEN WILL MANAGE ALL OTHER THINGS.‖ Today

this concept has been accepted by most of the companies working in India as well as

all over the world. Now all companies are interested in maintaining and developing

their existing manpower.

H.R.M. consists of all the activities related with the human. It includes the areas like

recruitment, selection, placement, induction, training, development, promotion,

transfer, demotion, wage and salary etc… This all aspects are very crucial aspect for

any company as its main input is human in any production or service industry.

For a service providing company its work force is most important as they are

―tengiblising the intangible service to make its sale.‖ ICICI being a service providing

company is having more concerned with the human force. ICICI is India‘s no. 1

private

Bank and has large number of employees. The ICICI has following strategies towards

the human resource.


ORGANISATIONAL STRUCTURE

‗Organization‘ is a group of people working together co-operatively under ‗authority‘

towards achieving goals and objectives that mutually benefit both, organization and

employees. There is a specific flow of authority and responsibility from top to bottom.

This is defining ―who is responsible to whom.‖ This is known as organizational

structure of the company. The organizational structure helps in better management

and control over the activities.

The main functions of organizational structure are as follow.

Task Accomplishment.

Delegation of Authority.

Proper span of supervision.

Proper communicational channel

Above all functions are performed through organizational structure of the company.

The structure helps to achieve the organization‘s goal more effectively and efficiently.

COUNTRY HEAD (MR. KARTIKEYAN)

REGIONAL HEAD (MR. ASHISH RATHOR)

UNIT MANAGER (MR. RONAK THAKKAR)

ASSISTANT UNIT MANAGER (MR. JAYESH

VASANI)

TRAINEES


This organization structure is for Rajkot branch. The structure remains the same for

other branch also. The regional head is appointed per state and unit manager is

appointed per district. If needed there can be more than one unit manager in one

district. Assistant unit manager are appointed per branch. AUM appoints number of

trainees as per requirement in the market.


HUMAN RESOURCE PLANNING

HRP means making planning about human resource. It includes managing human

force and making arrangement for future need also, so that proper employment is

maintained. HR manager need to estimate future need and arrange for suitable

candidate when needed. HRP is defined by many authors in different ways. Following

is one simple definition.

COLEMAN:

―The process of determining manpower requirement and the means for meeting those

requirements in order to carry out the integrated plan of the organization.‖

Benefits:-

Better view to top management over the human resources.

Better utilization of available human resource.

Forecast of future need for employees may be done.


RECRUITMENT RESOURCES According to YODER, ―Recruitment is a process to discover the sources of

manpower to meet the requirement of the staffing schedule and to employ effective

measures for attracting that manpower in adequate number to facilitate effective

selection of an efficient working force.‖

ICICI Securities has two recruitment resources.

Internal resource

External resource

Internal resources:-

Internal recruitment means filling the vacancy by existing employees. It includes

shuffling of employees by transfer, promotion, demotion etc. In ICICI Securities post

of AUM and UM are filled by promotion given to trainees and AUM respectively.

Benefit:-

It improves morale of employee.

Better evaluation is possible of present employees.

Promotes loyalty among the employees.

Less costly compared to external recruitment.

Limitation:-

It discourages new person to enter in the company.

If promotion is given on bases of seniority then young talent may get

discouraged.


External resources:-

Sometimes the requirement of the company does not match with the current

employees; the company now has to go for external recruitment. There are many

external sources from where a company can get the suitable candidates.

Following are some of the sources.

Colleges / campus recruitment

Press advertisement

TV advertisement

Employment agencies

External recruitment means recruiting a person from out side. This is used mainly for

trainees. They are supposed to have minimum education of graduation. Even students

of college are selected by AUM as trainees who have good communicational skill and

want to get marketing experience. Mainly local advertisement is given to fill up the

place of trainees.


SELECTION PROCESS

If you are on the verge of completing your Management Education and believe that

the amazing world of Banking is for you, there is no better place to start than ICICI

Bank.

Cross-functional movements are strongly encouraged to build capability in each

employee to become a knowledgeable service provider.

To get started, fill in the profile form. They will create a login id number and

password in case of successful registration. Your registration details will be emailed

to you on your specified email ID. You must use the same to log on, to edit your

resume and to know your hiring status in our company.

You can respond directly to a Current Opening or submit your profile into Talent

Database for consideration against future opportunities.

If you have already applied, you can update your resume with the most recent

information or choose to re-apply against a different position.

To improve the selection process for recruitment at all levels in ICICI Bank, They

have carried out an in-depth study of the competencies required to succeed in ICICI

Bank.

As per their research, the competencies, which indicated success at the entry level in

ICICI Bank, are:

Drive for results

Process Orientation

Interpersonal Effectiveness

Analytical Thinking

Innovation

Team Effectiveness


In order to assess the same they use a set of three tools –

A Mental Ability Tests (for candidates with 0-2 years of work experience)

a Personality profiling system

The Mental Ability Test gives a fair and objective assessment of candidates‘

skills in the areas of verbal reasoning, numerical reasoning & diagrammatic

reasoning. These are important skills for the role of an entry-level manager

and people who do well in these tests tend to do well in their jobs at ICICI

Bank. The total time taken in this exercise is 2 hours with each of the three

sections lasting 40 minutes

Candidates (at all levels regardless of the number of years of work

experience) are also required to complete the Occupational Personality

Questionnaire (OPQ) before they appear for the interview, the results of which

are integrated into our interview process.

If you are very interested to work in an esteemed organization like ICICI Bank, ICICI

gives you the opportunity to prove yourself.

The link Current Openings will take you to all the jobs that are being sourced at

present. You can click on the jobs to check out the detailed description of the position.

Follow the local newspapers for any regional recruitment.

If you are in the middle of a professional programme, than you can apply for an

Internship with ICICI Bank by,

Their site http://www.icicicareers.com/www.icicicareers.com click on the link

Campus Recruitment. This will take you to a page where most of the colleges are

listed. On choosing the appropriate college, a resume template appears. Fill that up

and choose Training as the category under Applying for option at the end of the

resume builder. On submitting the form, your resume will be processed as per

vacancies in ICICI Bank.

http://www.icicicareers.com/careers/control/applyagainstjob

http://www.icicicareers.com/www.icicicareers.com

http://www.icicicareers.com/campus_recruit.htm


There is no clerical cadre of employees in ICICI Bank. The entry-level employee in

our bank is an Officer.

Selection is a long process commencing from the preliminary interview of the

applicants and ending with the contract of employment. The hiring procedure is not a

single act, but it is a series of methods or steps by which additional information is

secured about the applicant. At each stage fact may come to light which may lead to

rejection of the applicant.

Selection process means a process through which most suitable person is selected

from the applicants. Normally there are written exam, oral test, interviews, and

practical test are taken as selection process. In ICICI Securities trainees are selected

on basis of interviews. Normally selection processes are done as per following.

Receipt of application:-

Normally local news paper advertisements are given in news paper for requirement of

trainees. Direct applications are submitted by candidate on web site.

Scrutinisation of application:-

Then the applications are being checked for their approval. Candidates which are

capable of doing job more efficiently are called for the written exam. The applicants

are informed by either mail or e-mail about the date of exam.

Written Interview:-

Normally written exam are not taken by the bank for job of trainee. But for the job of

AUM or administrative officer the exams are taken in major cities. The exam contains

questions on arithmetic ability and general knowledge.


Oral Interview:-

The candidates whose applications are most suitable are called for oral interview.

Interviews are taken by AUM and UM.

Selection:-

The candidate who has cleared above stages is selected for the job.


TRAINING AND DEVELOPMENT

Training is a process of learning a sequence of programmed behavior. It is application

of knowledge. It gives people an awareness of the rules and procedures to guide their

behavior in the market. It attempts to improve their performance on current job or

prepare them for an intended job.

Development is a related process. It covers not only those activities which improve

the job performance but also those which bring about growth of the personality. It

helps a person in progress towards maturity and actualization of their personal

capacity so that they become not only good employee but better men and women.

Following are some methods of training which are frequently used.

On the job training

On the job training method are the methods which gives the trainees opportunity to

work in an atmosphere which resembles or is itself the real atmosphere. It includes

following methods.

Job instruction training

Vestibule training

Training by experienced workmen

Demonstration

Simulation

Apprenticeship

Off the job training

Off the job training is generally given to provide information to the trainees. This is

useful when the trainee has no experience. This training provides the back ground of

company to the trainee.


Following are few of the job training methods

Lectures

Conferences

Group discussion

Case studies

Role playing

Programmed instructions

Laboratory training.

Newly entered trainees are given training by experienced trainees as well as AUM.

Firstly by AUM they are given full information and knowledge about all products and

then for practical training they are send with experienced trainees to get practical

knowledge about how to talk with customer, face to face as well as on phone. This is

called on the job training which gives practical exposure to trainee.

Development is a related process. It covers not only those activities which improve

the job performance but also those which bring about growth of the personality. It

helps a person in progress towards maturity and actualization of their personal

capacity so that they become not only good employee but better men and women.

For development of AUM bank and AUM they are arranging for seminars. UM are

also giving them guidance and regional head also visit the bank and give suggestion

for development if needed.


PROMOTION & TRANSFER POLICY

Promotion:-

Promotion means vertical movement of employee in organization structure. It

increases salary as well as responsibility. Promotion in ICICI Securities is based on

performance. Consistent performance of a trainee gives promotion of AUM and

consistent AUM performance lead to UM.

Transfer:-

Transfer means horizontal movement of employee in organizational structure.

Transited in ICICI Securities is rare. Normally transfer is not done except it is asked

by employee himself or herself or new branch is opened and bank needs experience

person in new branch.


WELFARE POLICY ICICI Securities is now a part of the ICICI bank. The welfare policy of all the

companies working under ICICI group is framed by the ICICI group. It remains the

same for all the employees of the ICICI group. Following are some of the highlights

of the welfare policy of the ICICI group.

Trekking Club:

ICICI bank is encouraging the employees to go for new challenges. In the same cause

it arranges the trekking for the employees. ―Trekking means to find a new trek.‖ It

develops the decision making and ability to handle a new situation. This provides

opportunity to employees to be physically and mentally fit and strong. It also connects

employees to the NATURE.

ICICI Bank organizes an annual trek to Uttarkashi. This makes employees satisfied as

they get chance to visit a place and joy of trekking.

Photography Club:

ICICI has a photography club in which all the interested employees get the

opportunity to learn from experts all about photography techniques, camera handling,

film developing and camera care. The club organizes contests with exciting prizes to

win! This encourages hobby development and sense of being counted as a family

member to the employees.

Saturday Kids Club:

For the children of our employees, a place to learn, unwind and have lots of fun. This

allows development of the children.


Health Services:

The company provides a comprehensive medical plan with an on-site doctor and

dietician.

Discount offers / schemes:

Corporate discounts on stuff ranging from washing machines, PCs, and CDs round the

year.

Holiday Homes:

We have holiday homes in the better-known vacation spots all over the country.

Scholarship Schemes:

For the children of our employees, so that they may grow to reach new heights.

Organizational Excellence

The Organizational excellence group, headed by a senior General Manager who

reports to Managing Director & CEO , is engaged in institutionalizing quality across

the Bank by building skills and capabilities in various quality frameworks. The group

has evolved a holistic workplace transformation model by integration various quality

methodologies such as Five S and Six Sigma. The group has been instrumental in

facilitating enterprise-wide deployment of Five S and is currently catalyzing the

development of quality processes across the Bank. The group works with business

units to leverage quality for business improvements. The group also supports other

ICICI group companies in their quality initiatives.

Community Development:


ICICI‘s social initiatives are designed to improve the capabilities of the poorest of the

poor to participate in the larger economy. They believe that optimizing child health in

the early years, providing universal elementary education and maximizing access to

micro financial services are critical for facilitating effective participation.

ICICI Bank's social sector initiatives aim to resolve some of the most fundamental

developmental problems facing India today. Our involvement is primarily in terms of

non-commercial support to fill knowledge and practice gaps in specific thematic

areas— Early Child Health, Elementary Education and Micro Financial Services.

www.ICICIsocialinitiatives.org is an interactive platform that seeks to:

Bring together participants in the development process to widen and deepen

the discourse informing development practice. Interactive features include

discussion boards and facilities to post papers, articles or other resources.

Publish research related to innovations and significant problems within the

identified thematic areas.

Enable online application for funding

Early Child Health:

In fiscal 2005, ICICI collaborated with DHAN Foundation, an NGO in Tamil Nadu,

with federated self-help groups (SHGs) and a robust micro finance programme to

examine whether

(a) SHGs provide an effective mechanism for improving health outcomes through

community-based and participatory ‗behavioral change communication‘.

(b) SHGs can mobilize communities and interface with local institutions to activate

the public health system.

(c) Innovative integration of microfinance and health care interventions can reduce

health care expenditure.


Additionally, ICICI participated in planning for and developing a community based

health worker programme for the state of Jharkhand based on the learning derived

from an operations research project funded by them in two blocks of Ranchi district.

ICICI also consolidated their efforts to improve health of newborn infants in the city

of Mumbai through health system reform and community action.

Elementary Education:

ICICI believe that education is a basic capacity required by every individual to

critically participate in social, political and economic processes and avails of

opportunities to acquire additional advanced skills throughout life.

The aim of their work in elementary education is to maximize the number of 14 years

olds who have a basic level of education. During fiscal 2005, ICICI explored issues

influencing the quality of education received by poor children in urban areas,

undertook initiatives to collect data on student learning and supported resource

organizations working in the area of early childhood education. Further in

continuation of their strategy

to strengthen of Delhi, Madhya Pradesh and Rajasthan. In addition, they consolidated

their initiative with State Council of Educational Research and Training, Chhattisgarh

for development and testing of curricula and textbooks and other capacity building

measures.

Micro Financial Services

ICICI‘s initiative in the area of micro financial services seek to ensure that all

individuals, especially the poorest, have access to financial services. Their work in

this area is to ensure universal access to financial services and develop a

comprehensive suite to financial services. in particular , they are investing in training

facilities for the creation and strengthening of micro finance institutions( MFIs) as

also working towards addressing constraints such as lack of capital and non-

availability of suitable IT solutions. During Fiscal 2005, ICICI made rapid strides in

developing several products, including savings, investments, pensions, remittances


and insurance (life and non-life, including weather, cattle and health insurance). These

products are in varying stage of development. A comprehensive health insurance has

already been introduced through ICICI Lombard General Insurance Company for the

poor in Anekal Taluka in Karnataka. The product insures 60,000 lives as provides

cashless treatment for 1,600 surgeries, in-patient and outpatient care at a premium of

Rs. 120-180 per person per annum. The product is being replicated in Manipal.

Similarly, the weather insurance product has also been successfully adopted by

various states in India. ICICI is now in the process of designing a weather insurance

product for the landless poor to cover loss of work due to adverse weather conditions.

ICICI Bank is divided into

(1) Wholesale banking

(2) Retail banking

(3) International banking

As a rapidly growing organization ICICI look to induct post-graduate management

talent from various business schools across the country. Enthusiastic and talented

youth form the backbone of their banking operations and will become future leaders

of ICICI.

ICICI offers the grooming needed to be the best. ICICI offers a wide range of

careers in all functions including - Finance, Marketing, Operations, Information

Technology and Human Resources.

ICICI having ability to nurture individuals and provide them the space and

empowerment they need to hone their talents. Size gives ICICI the unique ability to

provide fast growth and high responsibility early in one‘s career as well as multiple

avenues to reach the top.


The Work Culture at ICICI Bank is a tech-savvy, non-hierarchical, work environment

where early responsibility and independent decision-making enable each employee to

reach his/her potential. Coupled with this is a strong performance management system

that has built a meritocracy where high performing-high potential individuals are duly

rewarded.


FINANCE

DEPARTMENT


INTRODUCTION

Finance is one of the most crucial aspects for any company or business. The finance is

needed at all ventures. ICICI being bank finance is inevitable aspect for the bank.

Before 1980 A.D. the function of financial manager was to just manage the inflow of

cash when ever needed by the company. But now the scenario has changed.

Finance is like lifeblood in any organization. It is very difficult to run business

without enough procurement of finance in current scenario.

According to Phillipatus ―Financial Management is concerned with the managerial

decisions that result in the acquisition and financing of long-term and short-term

credits for the firm.‖

The Financial Management is mainly concerned with the proper management of

funds. The finance manager must see that the funds are procured in a manner that risk,

cost and control considerations are properly balanced in a given situation and there is

optimum utilization of funds.

The financial manager is having mainly three aspects to manage.

1. Finance function.

2. Investment function.

3. Dividend function.

1. Finance function.

In finance function the manager has to estimate the financial need of the company and

then try to satisfy it in most efficient and effective way. i.e. To get the money as and

when needed.


2. Investment function.

In investment decision manager is performing the task of evaluating the project and

selecting the most profitable project for the company. Here the selection is done on

the bases of the company‘s priority.

3. Dividend decision.

The company is managed by professionals now a day. The real owners of the

company are the shareholders. Profit of the company is given to shareholders in form

of dividend. Management takes the decision how much profit to pay as dividend and

how much to retain.

According to modern management approach, ―Finance function is procurement of

funds, and then effective utilization in the business‖.

FINANCIAL SECTOR OVERVIEW

The financial sector witnessed significant developments during fiscal 2005. Credit

growth strengthened with an increase in industrial activity. Non-food credit increased

by 29.1% in fiscal 2005 compared to 18.5% in fiscal 2004. Based on the data

published by RBI, the industrial sector is estimated to have accounted for 27.0% of

credit growth in fiscal 2005 as compared to 16% in fiscal 2004. The contribution of

retail credit growth to overall credit growth was the largest at 42 % of total non-food

credit. The credit-Deposit ratio increased from about 56% in April 2004 and stood at

about 60% from November 2004 onwards. The incremental credit deposit ratio,

excluding the impact of conversion of IDBI into a bank, was about 100% in March

2005 compared to about 60% at the beginning of the year.

Deposit grew by Rs.2, 285.26 billion, or 14.5%, in fiscal 2005 compared to 16.2% in

fiscal 2004. The average yield on 10-year government securities increased from 5.5%

in fiscal 2004 to 6.2% in fiscal 2005. In response to the hike in CRR and the reverse


repo rate in the RBI‘s mid-year review, in November 2004, banks increased their

benchmark prime lending and deposit rates.

Growth in both the life and non-life insurance markets was significant. First year

premium underwritten in the life insurance sector recorded a growth of 35.7% to

reach Rs. 253.43 billion in fiscal 2005 with the private sector‘s market share

increasing from 13.0% in fiscal 2004 to 21.9% in fiscal 2005.

Gross premium in the non-life insurance sector grew by 12.8% to Rs. 180.95 billion

in fiscal 2005 with the private sector‘s market share increasing from 14.1% in fiscal

2004 to 19.6% in fiscal 2005.

Total asset under management of mutual funds grew by 7.2% from Rs. 1,396.16

billion at March 31, 2004 to Rs. 1496.00 billion at March 31, 2005.

The banking sector witnessed several important regulatory developments. In June

2004, guidelines on capital for market risk were issued. Under this, banks would be

required to

maintain a capital charge for market risk in respect of their trading and available for

sale investment portfolios.

RBI has issued draft guidelines for the implementation of the revised capital adequacy

framework of the Basel Committee. These are to be effective from fiscal 2007 and

prescribe a 75.0% weight for retail credit exposure, rating based differential risk

weights for other credit exposure and a capital charge for operational risk.

A roadmap for presence of foreign banks in India has also been outlined. Initially,

foreign banks are allowed entry only in private sector banks identified by RBI for

restructuring in which acquisition is allowed in a phased manner. On February 28,

2005, RBI released guidelines on ownership and governance in private sector banks.


The Indian financial sector is rapidly moving towards international benchmarks.

Progress in direction of increasing efficiency, transparency and dynamism in the

system has been rapid. Given the rapid growth prospects in India, the financial sector

has a crucial role to play in the development of the economy. Board based reforms

have made the banking sector competitive and have positioned it well to support

sustainable growth in a fast growing economy.

The strength of the bank has been its diversification into various businesses. It covers

almost all the financial arrears. Recently, it entered into the commodity market in a

big way. It has also tasted success with its branchless banking model.


CAPITALISATION AND CAPITAL

STRUCTURE

Capitalization means total capital of a company. Capital structure means how a

company gathers its total capital. ICICI Securities is part of ICICI Bank. It doesn‘t

have its own capital structure and capitalization. Capitalization and capital structure of

ICICI Bank as a whole is as given below.

Capitalization means total amount of a Company‘s capital or total value of capital. It

is the sum of owners‘ capital + loan + retained earnings of business.

Gerston Bery defines capitalization as ―the total accounting value of all the capital

regularly employed in the business‖.

Capital Structure:

The capital structure of business should be such that, which helps to achieve the

objectives of finance department. The capital structure should be examined from the

view point of the impact of the value of the firm. It can be legitimately expected that

if the capital structure decision affects the total value of the firm, a firm should select

such Capital structure, which will maximize share holders wealth. Such type of capital

structure is called as OPTIMUM CAPITAL STRUCTURE (OCS). O.C.S. may be

defined as the capital structure, which is in the combination of debts and equity that

leads to the maximum value of the firm.

According to Gerstenberg, Capital structure refers to ‗the makeup of firm‘s

capitalization‖. Means it represents the mix of different sources of long-term funds

such as equity shares, preference shares, long-term loans, retained earnings etc.


In our organization the capital structure can be shown like below.

Particulars 2010 (Rs. In „000) 2009 (Rs. „000)

Subscribed and fully paid up

share capital.

1,110,707 610,710

Reserves and surplus 624,128.76 1,159,320

Loans (Debt). 4,291,600 4,481,850

Total 5026435.76 6251880


MANAGEMENT OF FIXED ASSETS

The fixed assets are distinguished from the current assets on the basis of length of

their physical and economic life, their convertibility into cash, the place they occupy

in the business cycle. Thus, fixed assets are permanent in nature and not easily

converted into cash. Huge firms are required to invest in fixed assets, for long period

and if any mistake made in evaluating investment proposals, must be shown by he

finance manager in evaluation investment proposal. These fixed assets have fixed

cost burden, therefore operating and financial efficiency of the firm have direct

bearing upon it.

There are two types of fixed assets:

1. Tangible assets

2. Intangible assets

Tangible assets include land, building, machinery, plants, etc. Intangible assets

includes goodwill, patent, trademark, etc., there are various aspects the manager

should keep in mind while preparing plan for fixed assets. These are as under:-

Time of acquisition of fixed assets:

Evaluation of capital project

Physical and economical life of project

Method of purchasing of fixed assets

Unit of investment in fixed assets

Regular records of each assets

Rate of depreciation on fixed assets

Plant maintenance

Replacement policy: Efficiency of each fixed assets


CAPITAL BUDGETING

Capital Budgeting is the process of planning expenditure for assets, the return on

which are expected to continue beyond one year.

The investment of funds requires a number of decisions to be taken in a situation in

which funds are invested and benefits are expected over a long period. The finance

manager of concern has to decide about the asset composition of the firm. The assets

of the firm are broadly classified into categories viz. fixed and current. The aspect of

taking the financial decision with regard to fixed assets is known as capital budgeting.

The term capital budgeting means planning for capital assets. The capital budgeting

decision means a decision as to whether or not money should be invested in long term

projects.

There are so many methods available for taking decisions of capital budgeting some

of are as given below.

1). Payback period method.

2). The net present value method.

3). Profitability index.

4). Average rate of return method.

5). Internal rate of return method.


WORKING CAPITAL MANAGEMENT

One of the most important areas in the day to day management of the organization is

the management of working capital. Working capital management is the functional

area of finance that covers the entire current accounts. Working capital refers to the

funds invested in current assets, i.e. investment in inventories, sundry debtors, cash

and bank balances etc. Current assets are essential to use fixed assets profitably.

Working capital requirement is one of the important criteria in every organization

proper concentration would always beneficial for organization.

The following are the main factors which should be taken into consideration while

determining the requirement of working capital.

1). Production policies.

2). Nature of Business.

3). Credit policy.

4). Inventory policy.

5). Market Conditions.

6). Conditions of supply.

7). Growth and expansion.

8). Level of Taxes.

9). Dividend Policy.

10).Price Level Changes.


Concept of working capital:

There are 2 types of working capital management, namely (1) Gross and (2) Net.

1. Gross Working Capital

The firm‘s gross working capital refers to total current assets of the firm. Current

assets are that which can be converted into cash within accounting year or a short

period. These assets should be more than current liabilities.

2. Net Working Capital

The term Net Working Capital refers to difference between current assets and current

liabilities. It guides the financial manager about the liquidity position of the firm.

The goal of Working capital management is to manage current assets and current

liabilities in such a way, that an acceptable level of Net working capital is maintained.


FINANCIAL HIGHLIGHTS

(Rs. In million)

Fiscal 2009 Fiscal 2010

Gross Income 7409.00 5182.10

Profit before Tax 227.20 67.30

Provision for Tax 820.30 23.10

Profit after Tax 1506.90 44.20

Profit after Tax for the year ended March 31, 2010 decreased to Rs. 44.2 million from

Rs. 1506.90 million in the previous year, primarily due to overall decrease in income

by Rs. 2307.90 million.

After taking into account the balance of Rs. 635.10 million (previous year: Rs. 408.90

million) brought forward from previous year, profit available for appropriation is Rs.

679.30 million (previous year:Rs. 1906.70 million), of which Rs. 20.0 million

(previous year Rs. 149.80 million) has been transferred to General Reserve.

DIVIDEND

During the year, the Company declared two interim dividends on the equity share

capital, aggregating 39.31% and amounting to Rs. 240.1 million. The Directors are

pleased to recommend the aggregate of interim dividends at Rs. 240.1 million as final

dividend for the year.

The Company had, on December 19, 2009, issued 5,000,000, 13.75% Non-

Convertible Cumulative Redeemable Preference Shares to ICICI Home Finance

Company Limited. The Directors are pleased to recommend a dividend @ 13.75% per

annum for the period from December 19, 2009 to March 31, 2010 amounting to Rs.

19.4 mil


RATIO ANALYSIS

Ratio analysis is one of the techniques of financial analysis where rations are used as

a yardstick for evaluating the financial condition and performance of the firm.

Analysis and interpretation of various accounting rations gives skilled and

experiences analyst a better understanding of the financial condition and performance

of the company than what he could have obtained only through a perusal of financial

statements.

Ratios are relationships expressed in mathematical terms between figures which are

connected with each other in come manner. Obviously, no purpose will be served by

comparing two sets of figures which are not at all connected with each other.

Moreover absolute figures are also unfit for comparison.

1). Current Ratio

This ratio measures the solvency of the company in the short term. Current assets are

those assets which can be converted into cash within a year. Current liabilities and

provisions are those liabilities that are payable within a year.

Current Ratio = Current Assets

Current Liabilities

2010 = 2964117.1 = 1.43

2066709.49

2009 = 7696700 = 2.20

3494640


2). Quick Ratio

Quick ratio is used as a measure of the company‘s ability to meet its current

obligations. Since bank overdraft is secured by the inventories, the other current assets

must be sufficient to meet other current liabilities.

Quick Ratio = Current Assets, loans & Advances – Inventories

Current Liabilities & Provisions – Bank overdraft

2010 = 2963199.1 = 1.434

2066709.49

2009 = 7459780 = 2.13

3494640

3). Debt Equity Ratio

This ratio indicates the relationship between loan funds and net worth of the company,

which is known as ‗gearing‘. If the proportion of debt to equity is low, a company is

said to be low geared, and vice versa.

Debt Equity Ratio = Long term debt

Share holder fund

2010 = 4291600 = 3.86

110707.00

2009 = 4481850 = 7.34

610710


4). Shareholder‟s Equity Ratio

This ratio is calculated as follows:

Shareholders Equity

Total Assets

It is assumed that larger the proportion of the shareholder‘s equity, the stronger is the

financial position of the firm. This ratio will supplement the debt-equity ratio. In the

ratio, the relationship is established between the shareholders‘ funds and the total

assets.

2010 = 1734835.76 = 0.214

8093145.15

2009 = 1770030 = 0.182

9740579

5). Fixed Assets to Long term fund

The fixed assets are shown as a proportion to long term funds as follows:

Fixed assets to long term fund = Fixed Assets

Long term funds

This ratio indicates the proportion of long term funds deployed in fixed assets. Fixed

assets represent the gross fixed assets minus depreciation provided on this till the date

of calculation. Long term funds indicate share capital, reserves and surplus and long

term loans. The higher the ratio indicates the safer the funds available in case of

liquidation. It also indicates the proportion of long term funds that is invested in

working capital.


2010 = 406336.45 = 0.095

4291600

2009 = 384384 = 0.086

4481850


RESEARCH

METHODOLOGY


Research Objective

Research on “Comparative analysis of Icicidirect.com with

other companies”

Today market is very competitive .That is why Icicidirect.com is also facing

competition from the other players in online share trading. So it requires to knowing

the product &services provided by the other players. It will give the co.the data & the

statesstics about the product and services of the other online trading players. It will

help the company to know how to get competitive advantage from the other players.

Any activity done without any objective in a mind cannot turn fruitful. An objective

provides a specific direction to an activity. Objectives may range form very general to

very specific, but they should be clear enough to point out with reasonable accuracy

what researcher wants to achieve through the study and how it will be helpful to the

decision maker in solving problem.

To the product know and services of other online trading players

To know the positive things about the company‘s own product from others

To know the possible product changes required in current product

To find the lacking in the current product.


Research design

A research design is pattern or an outline of a research project‘s working. It is a

statement of only the essential elements of a study, those that provide the basic

guidelines for the details of the project. It comprises a series of prior decisions that

taken together provide a master plan for executing a research project.

A research design serves as a bridge between what has been established i.e. the

research objective and what is to be done, in conduct of the study to realize those

objectives. If there were no research design, the research would have only foggy

notion about what is to be done. There are numerous specific designs, which can be

classified into three broad categories.

Research design is the conceptual structure within which the research would be

conducted. In fact, it is the general blueprint for the collection, measurement and

analysis of data.

Data Collection

After taking the objectives into consideration resources of data are decided.

Mainly data sources are primary data and secondary data. Secondary data are

the data that were collected for another purpose and already exist somewhere.

Primary data are data gathered for a specific purpose or for a specific research

project. The following are the data acquired for the study:

Secondary Data Sources

It refers to already gathered and collected data. These may be internal sources

within the clients firms. Externally, these sources may include books or


periodicals, reports and computer data banks. Here, the data is being collected

from:

1. Details about the organization from websites of all the

companies

2. Brochures of the Company

Primary Data Sources

This data is gathering for the first time for the problem solution. Primary data

has to be collected through well-equipped instruments, as they are first hand

information collected for the research.

SAMPLING DESIGN

PROBABILITY/ NON

PROBABILITY PROBABILITY

Sampling Unit Online trading companies

Sample Size 6 Online trading companies

Sampling Procedure Simple Stratified Sampling

Other on-line share trading co.‟s are

ICICIDIRECT.COM WWW.ICICIDIRECT.COM

Sharekhan www.sharekhan.com

5paisa www.5paisa.com

Indiabulls securities ltd. www.indiabulls.com

HDFC Securities www.hdfcsec.com

Kotak Securities www.Kotaksecurities.com

http://www.sharekhan.com/

http://www.5paisa.com/

http://www.indiabulls.com/

http://www.hdfcsec.com/

http://www.kotaksecurities.com/


Comparative

Analysis


Here comparative analyses of sites have been done.

Market: ICICI Direct.com is doing trade in both NSE as well as BSE market whereas

India bulls, HDFC Securities, kotak street doing in BSE market only. 5paisa is doing

in both BSE as well as NSE market.

So in case of ICICI Dirct.com is concern, it takes 40 to 50 seconds for that

where as India bulls is lowest in them and it takes 2 to 3 seconds, 5paisa.com takes 3

to 5 seconds, Kotak Street takes 5 to 10 seconds, Share khan takes 5 to 10 seconds

and HDFC Securities takes 40 to 50 seconds.

ICICI Direct.com takes this much time because they will give you first buying

or selling page where you have to fill information then after you have to proceed

where they will give you order verification page where you will check then after you

have to proceed and this particular order verification will sent to the exchange then

after order acknowledgement receipt will come and then after we have to see in order

book whether order is executed or not so it takes so much time where as in other site

they will give you within 5 to 10 seconds.

Linkage: In online trading, it link with 3 in 1 account where it include bank account,

demat account and trading account. Where it easily takes place transaction and we can

easily transfer money from saving to secondary market, IPO, mutual fund, derivative

and other product.

In ICICI Direct.com, it also linked with 3 account and it is its own DP a\c,

saving a\c and trading a\c. where as in India bulls, share khan and 5paisa.com they

have its own

DP a\c and trading a\c but not saving a\c, it has to be open in other bank a\c. where as

kotak street and HDFC Securities having its own 3 account.

Quotes update technology: this is a technology where latest and live quotes will be

updated second to second. it also update latest price, volume, volatility etc.


In India bulls, kotak street, sharekhan and in 5paisa.com, it is having trading

through terminal so it is giving very fast update technology about the quotes where as

in ICICI Direct.com still no such a type of technology like terminal trading is there

but it gives fast updating technology and in the same way HDFC Securities also

provides this facility.

Registration charges: it is charges where we have to pay at the time of registration

may be lifetime account, stamp duty charges, intermediary commission.

In ICICI Direct.com and in HDFC Securities, it is Rs. 750. also in 5paisa.com

it is Rs.750, in kotak street and share khan it is Rs, 500 where as it is Rs. 500 in India

bulls.

Registration Time: It is the time between filling up form and activation of account. It

includes rejection time period.

In ICICI Direct.com, it takes 2 to 3 weeks registration time but some time it

will give us quick response about of it also. Whereas in 5paisa.com it takes 10 days

and in kotak street it takes 7 days, where as in share khan it takes 7 days, where as in

India bulls it takes 4 days only where as in HDFC Sec., it takes 2 to 3 weeks.

Terminal: this is an important technology for trading in secondary market where

latest price, which share is going up, which share is going down, % change, we can

see real trade practices on it, it is wise instrument.

India bulls, share khan, 5paisa.com, kotak street provided terminal to their

customer at extra cost.

Call alert facility: it is good facility provided where alert provided by company to its

customer about indicator.


ICICI Direct.com give this indicator with the help of giving message. e.g. if

you have suggested that if particular stock increase to this prices then give me alert

then this system give you alert and message come on your mobile. In other site like

India bulls they will send you message in messenger.other site send you e-meil.


COMPARISION

Particulars ICICI Direct HDFC Sec.

A/c. Opening 750 750

Brokerage:-

Cash Segment ( Delivery ) 0.75% 0.50%

Margin Segment ( Same Day ) 0.15% 0.15%

Demat Charges:-

A/c. Opening NIL NIL

Annual Service Chages 350 299

Market Buy 0.02%, Mini Rs. 20 0.04%,Mini. Rs. 25

Market Sell 0.04%, Mini Rs. 20 0.04%,Mini. Rs. 25

Off-Market Buy 0.02%, Mini Rs. 20 0.04%,Mini. Rs. 25

Off-Market Sell 0.04%, Mini Rs. 20 0.04%,Mini. Rs. 25

Dematerialization Rs. 35 per request, Rs. 2 per certificate Rs. 35 per request, Rs. 3 per certificate

Rematerialization Rs. 20 per entry Rs. 10 per cetificate, Mini. Rs. 10

Custody Charges 0.75 per month per ISIN Rs. 1.25 per month per ISIN

Mini. Bal. Requirement in

Savings A/c. ICICI-5000 HDFC-5000

Limit Exposure:-

Cash Segment ( Delivery) 1 time 4 times

Margin Segment ( Same Day ) 3 to 25 times 4 times

Saving Bank A/c. With ICICI Bank HDFC Bank

Demat A/c. With ICICI Bank HDFC Bank


Icicidirect.com vs. Hdfc securities

Competitive Advantages of icicidirect.com

Market Buy & off-market sell charges are less than the hdfc securities

I.e. in icici – 0.02%, mini Rs. 20

in hdfc – 0.04%, mini Rs. 25

Custody charge of Icicidirect.com is also less than the hdfc sec.

I.e. Icici – 0.75 per month per ISIN

hdfc – 1.25 per month per ISIN

More limit exposure providing to the customers I.e. 3 to 25 times limit

exposure in margin segment(same day), where hdfc providing only 4 times

limit exposure.

Drawbacks of Icicidirect.com

Brokerage is more than the hdfc I.e. 0.75% where in hdfc it is only 0.50%.

Annual service charge is also higher than the hdfc I.e. in icici – Rs. 350 where

in Hdfc it is only Rs.299.

Rematerialization charges is also higher than the hdfc I.e. in icici – Rs. 20 per

entry & in hdfc it is only Rs. 10 per certificate, mini Rs.10


Particulars ICICI Direct Kotak Street


Brokerage:-



Demat Charges:-



Market Buy 0.02%, Mini Rs. 20 0.04%, Mini. Rs. 15

Market Sell 0.04%, Mini Rs. 20 0.04%, Mini. Rs. 15

Off-Market Buy 0.02%, Mini Rs. 20 0.04%, Mini. Rs. 15

Off-Market Sell 0.04%, Mini Rs. 20 0.04%, Mini. Rs. 15

Dematerialization Rs. 35 per request, Rs. 2 per certificate

Rs. 25 per request, Rs. 3 per

certificate

Rematerialization Rs. 20 per entry 0.04% of the value, Mini. Rs. 15



Savings A/c. ICICI-5000

HDFC-2500+5000 Deposite for 7

days

UTI-1000+5000 Deposite for 7

days

KOTAK-2500+5000 Deposite for

7 days

Limit Exposure:-



Saving Bank A/c. With ICICI Bank HDFC,UTI,KOTAK

Demat A/c. With ICICI Bank Kotak Securities


Icicidirect.com vs. Kotak Street

Competitive Advantage of ICICIdirect.com

In Icicidirect.com only Rs. 5000 minimum balance requirement where in

Kotak street the minimum balance requirement is more I.e. in Hdfc

2500+5000 deposit for 7days, in UTI 1000+5000 deposit for 7 days or in

Kotak 2500+5000 deposit is required.

Highest limit exposure in case of margin segment (same day) given to the

customers i.e. 3 to 25 times where in the Kotak it is only 4 times given.


Account opening charge is higher than the Kotak street i.e. Rs. 750 where in

Kotak it is only Rs. 500.

Brokerages is also higher than the Kotak street i.e. in Icicidirect.com it is

o.75% & 0.15% where in Kotak it is only 0.50% & 0.10%

Annual service charge of demat account is also higher than the Kotak i.e. in

icici it is Rs. 350 & in Kotak it is only Rs. 240.


Particulars ICICI Direct 5-paisa


Brokerage:-



Demat Charges:-


Annual Service Charges 350 250

Market Buy 0.02%, Mini Rs. 20 NIL

Market Sell 0.04%, Mini Rs. 20 Rs. 20 per transaction

Off-Market Buy 0.02%, Mini Rs. 20 NIL

Off-Market Sell 0.04%, Mini Rs. 20 Rs. 20 per transaction

Dematerialization


certificate


certificate

Rematerialization Rs. 20 per entry Rs. 15 per certificate



Savings A/c.

ICICI-5000 ICICI-5000+5000 Deposit

HDFC-2500+5000 deposit

Limit Exposure:-

Cash Segment ( Delivery) 1 time 1 time


Saving Bank A/c. With ICICI Bank ICICI,HDFC

Demat A/c. With ICICI Bank India Infoline Securities


Icicidirect.com vs. 5-paisa

Competitive Advantage of icicidirect.com

In Icicidirect.com only Rs. 5000 minimum balance requirement where in 5-

paisa the customer have to kept minimum balance Rs. 5000+5000 deposit in

icici or in hdfc 2500+5000 deposit is required.


customers i.e. 3 to 25 times where in the Kotak it is only 4 times given.


Brokerages is higher than the 5-paisa i.e. in Icicidirect.com it is o.75% &

0.15% where in 5-paisa it is only 0.50% & 0.10%

Annual service charge of demat account is also higher than the 5-paisa i.e. in

icici it is Rs. 350 & in 5-paisa it is only Rs. 250.


Particulars ICICI Direct Indiabulls


Brokerage:-



Demat Charges:-

A/c. Opening NIL 200

Annual Service Chages 350 NIL


Market Sell 0.04%, Mini Rs. 20 Rs. 17 per transaction

Off-Market Buy 0.02%, Mini Rs. 20 NIL


Dematerialization


certificate


certificate

Rematerialization Rs. 20 per entry 0.02% of the value, Mini Rs. 15



Savings A/c.

ICICI-5000

ICICI-5000

HDFC-2500

Limit Exposure:-



Saving Bank A/c. With ICICI Bank ICICI,HDFC

Demat A/c. With ICICI Bank Indiabulls Securities


Icicidirect.com vs. Indiabulls



customers i.e. 3 to 25 times where in the Indiabulls it is only 6 times given.

Custody charges is less than the Indiabulls i.e. 0.75 per month per ISIN where

in Indiabulls it is 1.25 per month per ISIN.


Account opening charge is higher than the Indiabulls i.e. Rs. 750 where in

Indiabulls it is only Rs. 500.

Brokerages is also higher than the Indiabulls i.e. in Icicidirect.com it is o.75%

& 0.15% where in Indiabulls it is only 0.50% & 0.10%

Annual service charge of demat account is also higher than the Indiabulls i.e.

in icici it is Rs. 350 & in Indiabulls it is nil.


Particulars ICICI Direct Share khan


Brokerage:-



Demat Charges:-




Market Sell 0.04%, Mini Rs. 20 NIL

Off-Market Buy 0.02%, Mini Rs. 20 Rs. 18 per transaction


Dematerialization


certificate


certificate

Rematerialization Rs. 20 per entry Rs.15 per certificate.

Custody Charges 0.75 per month per ISIN no charges


Savings A/c.

ICICI-5000 HDFC-2500+10000 Deposite

Limit Exposure:-



Saving Bank A/c. With

ICICI Bank HDFC, UTI, GTB, IDBI, citi

bank

Demat A/c. With ICICI Bank Share khan


Icicidirect.com vs. Sharekhan



customers i.e. 3 to 25 times where in the Sharekhan it is only 4 times given.

In Icicidirect.com only Rs. 5000 minimum balance requirement where in

Sharekhan the customer have to kept minimum balance Rs. 2500+10000

deposit required in hdfc.


Account opening charge is higher than the Sharekhan i.e. Rs. 750 where in

Sharekhan it is only Rs. 500.

Brokerages is also higher than the Sharekhan i.e. in Icicidirect.com it is o.75%

& 0.15% where in Sharekhan it is only 0.50% & 0.10%

Annual service charge of demat account is also higher than the Sharekhan i.e.

in icici it is Rs. 350 & in Sharekhan it is Rs. 300.


Limitation of the study

The information given by the person of company may not be completely

correct. Some information may be given wrongly which may not be factual.

The complete parameters to compare the Online product are not included.

Visual look of the Software and different facilities of software are not

included.

Only one person of a company is interviewed.All the parameters may not be

relevant for all the companies.

Due to limitation of time and cost constraints a sample size of only 6

companies of online trading are chosen. This exploratory research is done

focusing on the Comparative analysis scenario of Saurashtra region only

therefore findings and suggestions given on the basis of this research and

cannot be considered for the entire stock market Industry.

As we all know, security market is highly volatile. We may predict about it

more accurate but due to uncertain driving forces the predictions may not

work.

The market risks and uncertainties are always there


RESEARCH FINDINGS

Limit Exposure in case of margin segment (same day) is higher than all other

companies.

Account opening charge is also higher than the other companies.

Still quotes of BSE trading time are late by 10 to 15 minutes.

Some time we cannot execute trade on BSE market.

Still transaction speed is not high in compare to other companies.

Brokerage charges is also higher than the other companies.

Some customers demanding more limits in deliver trading which is lower than

other sites.

Some customers are interested in account opening but not ready for

maintaining minimum Rs. 5000 balance in saving account.

Annual Service charge is higher than the other companies.


RECOMMENDATIONS & SUGGESTIONS

For Brokers

Brokerage Firms need to ensure that their ability to provide effective customer

service keeps pace with their growth, if you are marketing your firm to new

customers, you better be able to provide them service when they do business

with you.

All firms, whether on-line, discount or full service, have an obligation to

ensure the best execution of their customers‘ orders.

Network infrastructure will have to be stabilized. The Internet an computers

will have to penetrate further in day-to-day life of investors. When security

and accessibility issues are resolved and technology stabilizes successful

investor will find the actual time spent trading will be minimal. Nearly all the

effort involved will relate to monitoring the standards that have been set. Not

so hard, but not so easy

FOR COMPANY:

Company should decrease brokerage. Right now it is 0.75% on delivery and

0.15% on margin trading.

Company should decrease the account opening charges so that more & more

customers can be attracted.

Annual charges should be decrease because the other companies have very

less annual charges.

Sometime problem arise on BSE market trading where we cannot execute

trade on it. So company should improve infrastructure facility.

Awareness should create among the people about this new type of technology

with the help of seminar and expert session.


FOR CUSTOMER:

Customer should not worry about brokerage part because services are far

better and different types of products are there in the company.

ICICI Direct.com is part of ICICI Group & this group is trusted by million of

people.

For investors

There is risk of loss associated with investing in securities regardless of the

method used. New investors need to understand the principles of investing, their own

risk tolerance, and their investment goals before venturing into the market. In

addition, online investors may want to consider these other risks. High Internet traffic

may affect online investors‘ ability to access their account or transmit their orders.

Online investors should be skeptical of stock advice and tips provided in chat rooms

or bulletin boards. Investors should do their own research before acting on these tips.

Also, for some online investors, there is a temptation to "overtrade" by trading too

frequently or impulsively without considering their investment goals or risk tolerance.

Overtrading can effect investment performance, raise trading costs, and complicate

your tax situation.


CONCLUSION

Online Trading is successful in other parts of the world, especially in the US.

That‘s because it has a strong culture of using credit cards (plastic money) and

a strong law and order system. If you look beyond the US, even other leading

markets like Hong Kong are still in a premature stage for execution of internet

trading. As for the future of internet broking in India, It sounds exciting, but

when we talk about the net penetration level of telecommunication and

computer usages, it is poor in India. Since the concept is new to investors, it is

very important that they follow certain guidelines, which will ensure safe

trading. Removing the mental block from the minds of the investor with regard

to online trading. The Indian stock market faces the challenge of setting up this

infrastructure. Another important point is people of India specifically; investors

are not too much techno. This has been achieved through active use of cutting-

edge technology and being improved by highly motivated and skilled

employees.

The success of e-broking would depend on addressing each and every

issue faced by the investors in offline trading and delivering the service in a

seamless manner backed by world-class customer service.

Finally India needs a robust and world class IT and telecom

infrastructure coupled with explosion in Internet penetration. In under served

Internet market of India, this is one definite case of ―build and they will come.‖


Bibliography

WEBSITES

http://www.hdfcsec.com

http://www.indiabulls.com

http://www.5paisa.com

http://www.icicidirect.com

http://www.sharekhan.com

http://www.omkotak.com.

http://www.HDFC.com

http://www.indiabulls.com

www.nsdr.com

www.notension.biz

www.traderji.com

BOOKS

Marketing Management - Philip Kotler

Research Methodology - C.R Kothari

HRM - K.Aswathapa

http://www.hdfcsec.com/

http://www.indiabulls.com/

http://www.5paisa.com/

http://www.icicidirect.com/

http://www.sharekhan.com/

http://www.omkotak.com/



http://www.nsdr.com/

http://www.notension.biz/

Documents

Summer internship project of Icicidirect.com on comparative analysis