icici project report
TRANSCRIPT
PREFACE
ICICI BANK IS ONE OF THE LEADING PLAYER IN THE INDIAN RETAIL ASSET FINANCE MARKET. IT OFFERS LOANS FOR HOMES , FOR BUYING OR CONSTRUCTION HOMES OR EVEN TO EXTEND OR IMPROVE THE EXISTING HOME. IT ALSO FINANCE THE PURCHASES OF LAND.
ICICI BANK CATERS TO THE WIDE RANGE OF BANKING SERVICES COVERING BOTH COMERCIAL & INVESTMENT BANKING ON WHOLESALE AND TRANSACTIONAL OR BRANCH BANKING ON THE RETAIL SIDE.
THE SUMMER TRAINING UNDERTAKEN AT ICICI BANK LTD. IS ONE SUCH EXPERIENCE WHEREIN THE PROJECT AIMS AT HELPING THE ORGANIZATION TRY OUT A NEW POSSIBILITY IN THE FIELD OF MARKETING. IT IS A NEW PLATFORM OF LEARNING THROUGH PRACTICAL EXPERIENCE WHICH INCOPORATES SURVEYS,COMPARATIVE ANALYSIS, AND BRAND PROMOTION AS WELL AS UNDERSTANDING THE OFFICE ENVIORMENT.
CONTENTS
1. INTRODUCTION
2. COMPANY PROFILE
Objectives Values Products offered by ICICI
Customer AccountsInvestment ProductsLoans
Services offered by ICICI
Retail BankingCorporate BankingServices to NRI’s
Management
3. RESEARCH METHODOLOGY
4. DATA ANALYSIS
5. SURVEY & OBSERVATION
6. CONCLUSION,FINDINGS & SUGGESTIONS
7. BIBLIOGRAPHY
8. QUESTIONNAIRE
INTRODUCTION
BANKINGIndia cannot have a healthy economy without a sound and effective banking system. The banking system should be hassle free and able to meet the new challenges posed by technology and other factors, both internal and external.In the past three decades, India's banking system has earned several outstanding achievements to its credit. The most striking is its extensive reach. It is no longer confined to metropolises or cities in India. In fact, Indian banking system has reached even to the remote corners of the country. This is one of the main aspects of India's growth story.The government's regulation policy for banks has paid rich dividends with the nationalization of 14 major Private Bank in 1969. Banking today has become convenient and instant, with the account holder not having to wait for hours at the bank counter for getting a draft or for withdrawing money from his account.
HISTORY OF BANKING IN INDIA
The first bank in India, though conservative, was established in 1786. From 1786 till today, the journey of Indian Banking System can be segregated into three distinct phases:
Early phase of Indian banks, from 1786 to 1969
Nationalization of banks and the banking sector reforms, from 1969 to 1991
New phase of Indian banking system, with the reforms after 1991
Phase1
The first bank in India, the General Bank of India, was set up in 1786. Bank of Hindustan and Bengal Bank followed. The East India Company established Bank of Bengal (1809), Bank of Bombay (1840), and Bank of Madras (1843) as independent units and called them Presidency banks. These three banks were amalgamated in 1920 and the Imperial Bank of India, a bank of private shareholders, mostly Europeans, was established. Allahabad Bank was established, exclusively by Indians, in 1865. Punjab National Bank was set up in 1894 with headquarters in Lahore. Between 1906 and 1913, Bank of India, Central Bank of India, Bank of Baroda, Canara Bank, Indian Bank, and Bank of Mysore were set up. The Reserve Bank of India came in 1935.During the first phase, the growth was very slow and banks also experienced periodic failures between 1913 and 1948. There were approximately 1,100 banks, mostly small. To streamline the functioning and activities of commercial banks, the Government of India came up with the Banking Companies Act, 1949, which was later changed to the Banking Regulation Act, 1949 as per amending Act of 1965 (Act No. 23 of 1965). The Reserve Bank of India (RBI) was vested with extensive powers for the supervision of banking in India as the Central banking authority. During those days, the general public had lesser confidence in banks. As an aftermath, deposit mobilization was slow. Moreover, the savings bank facility provided by the Postal department was comparatively safer, and funds were largely given to traders.
Phase2
The government took major initiatives in banking sector reforms after Independence. In 1955, it nationalized the Imperial Bank of India and started offering extensive banking facilities, especially in rural and semi-urban areas. The government constituted the State Bank of India to act as the principal agent of the RBI and to handle
banking transactions of the Union government and state governments all over the country. Seven banks owned by the Princely states were nationalized in 1959 and they became subsidiaries of the State Bank of India. In 1969, 14 commercial banks in the country were nationalized. In the second phase of banking sector reforms, seven more banks were nationalized in 1980. With this, 80 percent of the banking sector in India came under the government ownership.
Phase3
This phase has introduced many more products and facilities in the banking sector as part of the reforms process. In 1991, under the chairmanship of M Narasimham, a committee was set up, which worked for the liberalization of banking practices. Now, the country is flooded with foreign banks and their ATM stations. Efforts are being put to give a satisfactory service to customers. Phone banking and net banking are introduced. The entire system became more convenient and swift. Time is given importance in all money transactions.The financial system of India has shown a great deal of resilience. It is sheltered from crises triggered by external macroeconomic shocks, which other East Asian countries often suffered. This is all due to a flexible exchange rate regime, the high foreign exchange reserve, the not-yet fully convertible capital account, and the limited foreign exchange exposure of banks and their customers. THE BANKING STRUCTURE IN INDIA
The commercial banking structure in India consists of scheduled commercial banks and unscheduled banks. Scheduled banks constitute those banks that are included in the Second Schedule of Reserve Bank of India (RBI) Act, 1934.As on June 30, 1999, there were 300 scheduled banks in India having a total network of 64,918 branches. The scheduled
commercial banks in India comprise State Bank of India and its associates (8), nationalised banks (19), foreign banks (45), private sector banks (32), co-operative banks, and regional rural banks. Before the nationalization of Indian banks, the State Bank of India (SBI) was the only nationalized bank, which was nationalized on July 1, 1955, under the SBI Act of 1955. The nationalization of seven State Bank subsidiaries took place in 1959.After the nationalization of banks in India, the branches of the public sector banks rose to approximately 800 percent in deposits and advances took a huge jump by 11,000 percent.
Nationalization Process 1955: Nationalization of State Bank of India
1959: Nationalization of SBI subsidiaries
1969: Nationalization of 14 major banks
1980: Nationalization of seven banks with deposits over Rs 200 crore
BANKS IN INDIA
In India, banks are segregated in different groups. Each group has its own benefits and limitations in operations. Each has its own dedicated target market. A few of them work in the rural sector only while others in both rural as well as urban. Many banks are catering in cities only. Some banks are of Indian origin and some are foreign players.Banks in India can be classified into:
Public Sector Banks
Private Sector Banks
Cooperative Banks
Regional Rural Banks
Foreign BanksOne aspect to be noted is the increasing number of foreign banks in India. The RBI has shown certain interest to involve more foreign banks. This step has paved the way for a few more foreign banks to start business in India.
RESERVE BANK OF INDIA (RBI)
The central bank of the country is the Reserve Bank of India (RBI). It was established in April 1935 with a share capital of Rs 5 crore on the basis of the recommendations of the Hilton Young Commission. The share capital was divided into fully paid shares of Rs 100 each, which was entirely owned by private shareholders in the beginning. The government held shares of nominal value of Rs 220,000.The RBI commenced operation on April 1, 1935, under the Reserve Bank of India Act, 1934. The Act (II of 1934) provides the statutory basis of the functioning of the Bank. The Bank was constituted to meet the following requirements:
Regulate the issue of currency notes
Maintain reserves with a view to securing monetary stability
Operate the credit and currency system of the country to its advantage
FUCTIONS OF THE RBI
The Reserve Bank of India Act of 1934 entrusts all the important functions of a central bank with the Reserve Bank of India.
Bank of Issue: Under Section 22 of the Act, the Bank has the sole right to issue currency notes of all denominations. The distribution of one-rupee notes and coins and small coins all over the country is undertaken by the Reserve Bank as an agent of the government.
Banker to the Government: The second important function of the RBI is to act as the government’s banker, agent, and adviser.
Bankers' Bank and Lender of the Last Resort: The RBI acts as the bankers' bank. Since commercial banks can always expect the RBI to come to their help in times of banking crisis, the RBI becomes not only the banker's bank but also the lender of the last resort.
Controller of Credit: The RBI is the controller of credit, i.e., it has the power to influence the volume of credit created by banks in India. It can do so through changing the Bank rate or through open market operations.
Custodian of Foreign Reserves: The RBI has the responsibility to maintain the official rate of exchange. Besides maintaining the rate of exchange of the rupee, the RBI has to act as the custodian of India's reserve of international currencies.
Supervisory Functions: In addition to its traditional central banking functions, the RBI has certain non-monetary functions of the nature of supervision of banks and promotion of sound banking in India. The Reserve Bank Act, 1934, and the Banking Regulation Act, 1949, have given the RBI wide powers of supervision and control over commercial and co-operative banks, relating to licensing and establishments, branch expansion, liquidity of their
assets, management and methods of working, amalgamation, reconstruction, and liquidation.
INDIAN BANKs’ ASSOCIATION (IBA)
The Indian Banks’ Association (IBA) was formed on September 26, 1946, with 22 members. Today, IBA has more than 156 members, such as public sector banks, private sector banks, foreign banks having offices in India, urban co-operative banks, developmental financial institutions, federations, merchant banks, mutual funds, housing finance corporations, etc.The IBA has the following functions:
Promote sound and progressive banking principles and practices.
Render assistance and to provide common services to members.
Organize co-ordination and co-operation on procedural, legal, technical, administrative, and professional matters.
Collect, classify, and circulate statistical and other information.
Pool expertise towards common purposes such as cost reduction, increased efficiency, productivity, and improving systems, procedures, and banking practices.
Project good public image of banking through publicity and public relations.
Encourage sports and cultural activities among bank employees.
BANKING ACTIVITIES
Retail bankin g, dealing directly with individuals and small businesses
Business banking, providing services to mid-market businesses
Corporate banking, directed at large business entities
Private banking, providing wealth management services to high networth individuals
Investment banking, activities in the financial markets, such as "underwrite" (guarantee the sale of) stock and bond issues, trade for their own accounts, make markets, and advise corporations on capital market activities like mergers and acquisitions
Merchant banking is the private equity activity of investment banks
Financial services, global financial institutions that engage in multiple activities such as banking and insurance
INTRODUCTION OF ICICI BANK
ICICI Bank is India's second-largest bank with total assets of about Rs.5,367.95 billion (US$ 99 billion) at March 31, 2013 and profit after tax of Rs. 83.25 billion (US$1,533 million) for the year ended March 31, 2013.The Bank has a network of 3,620 branches and 11,292 ATMs in India, and has a presence in 19 countries, including India.
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 Bombay Stock Exchange and the National Stock Exchange of India Limited and its American Depositary Receipts (ADR’s) are listed on the New York Stock Exchange (NYSE).
ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution, and was its wholly-owned
subsidiary. ICICI's shareholding in ICICI Bank was reduced to 46% through a public offering of shares in India in fiscal 1998, an equity offering in the form of ADRs listed on the NYSE in fiscal 2000, ICICI Bank's
acquisition of Bank of Madura Limited in an all-stock amalgamation in fiscal 2001, and secondary market sales by ICICI to institutional investors in fiscal 2001 and fiscal 2002. ICICI was formed in 1955 at the initiative of the World Bank, the Government of India and representatives of Indian industry.
The principal objective was to create a development financial institution for providing medium-term and long-term project financing to Indian businesses.
In the 1990s, ICICI transformed its business from a 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 management 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.
OBJECTIVES
The primary objective of ICICI Bank is to enhance residential housing stock and to promote home ownership.
To advance money to any person, company ,corporation, society or association at interest either with or without any security to enable the person to erect, purchase, enlarge or repair any house, building, any part of portions or to purchase any freehold, leasehold, any land or property in india upon the terms and conditions as laid by the company.
To develop any land acquired by the company or in which the company is interested for building purposes, constructing, altering, or building lease or building agreement and by advancing money and entering into contracts and agreements of all kinds with builders, tenants and others.
Subject to the provisions of Banking Regulation Act,1949 to receive money on deposits, loans or otherwise with or without interest and to secure the same in such a manner and on such terms and conditions as the company may think fit and proper and to guarantee the debts, obligations and contracts of any person, firm, company or corporations.
To negotiate loans of every description.
To finance or assist in financing the sale of houses, buildings, flats, either furnished or otherwise by way of hire purchase, deferred payments or similar transactions and to carry on subsidised finance or assist in subsidising or financing the sale of these houses, buildings, flats, furnished or otherwise, upon any terms.
To aid any government, state or municipal corporation, company/association or individuals with capital, credit means or resources for prosecution of any works, undertakings, projects or enterprises which are conducive to all or any of the objects of the company.
To adopt such mean for promoting the business of the company may seem expedient and in particular by advertising in the press by circulars and exhibitions, by organising camps, by publication of books and periodicals by granting prizes, rewards and donations.
To provide for the welfare of the employees or ex-employees of the company and the wives, widows and the children or the dependents of such person in such a manner as the company seems fit and proper.
To effect and mention insurance against loss of any property or any person employed by the company or against any other loss to the company.
To undertake and carry on the business in india or abroad of merchant banking, including consultancy services of all kinds and descriptions, investment counselling, portfolio management, providing financial and investment assistance, syndication of loans, counselling and tie up for project and working capital finance, syndication of financial arrangements whether it domestic or international markets, handling of mergers and amalgamations assisting in setting up of joint ventures, foreign currency lending, tax consultancy, underwriting of any securities, whether singly or consortium without prejudice to the generality of the foregoing to act as advisor and consultants or managers to the issue of shares, debenture , stocks, bonds and securities.
VALUES OF ICICI
COMMITMENT TO CARE
The warmth, the interaction, the experience, the follow up service and most importantly, the enduring relationship between customer and corporation which is sustained and strengthen over the years, constitute the crucial difference. Such a commitment has been the constant under current of all their activities, manifesting itself in the ways in which they have functioned in the housing finance industry. ICICI believes in “commitment to care”.
COMMITMENT TO DIVERSIFIED RANGE OF FINANCIAL SERVICES
In today’s business environment, several ICICI financial service entities function: each autonomous, each in a different endeavor and, together, a key and forward thinking group under the ICICI banner, with firm roots in the ICICI attitude of commitment, particularly to customer care. The commitments ICICI make to itself and others, and their integrity to those commitments is essence and clearest manifestation of ICICI proactivity. It is also the essence of their growth.
PUTTING CYPER-FRSH IDEAS TO WORK
An imaginative approach in customer service in imbues the attitude of each their relatively young, but rapidly growing financial service companies. The endeavor is to make dexterous use of state-of-the-art-technology reaching out across the world with, the reassurance of an instant, person-to-person connectivity, wherever this is needed.
Take a few innovative examples:
The facilities from ICICI Bank, like being able to access your account-which includes your demat account, if you have entrusted it to us- from anywhere in the world, at any time using netbanking or shopping with our international debit card, anywhere in india and over 140 countries abroad.
GENERATING SPEED WITH SYNERGY
ICICI securities provides flexibility of transacting in securities through the internet or on the phone, or both which makes for convenience as much as for speed. It is simplifies when you work with ICICI, with the latter offering an exhaustive range of real estate services, information and professional guidance.
KEEPING FAITH AND KEEPING TRACK
Customers whether individuals, groups or corporates, dealers or realtors are assured that every transaction is based on the tenets of trust and transparency and rigorous professionalism a significant part of ICICI commitment and concern.
Secondly, every customer doesn’t just deal with today’s computer desktop. With ICICI bank, no matter where you are located the special Customer Relationship Manager assigned to you keeps tabs, connects, answers queries and helps solve problems.
PRODUCTS OF ICICI BANK
1. Customer Accounts2. Investment Products3. Loans
CUSTOMER ACCOUNTS
Among the various products of ICICI Bank major products are customer accounts. It offers following type of accounts:-
1. Saving Account:-ICICI Bank has a value added saving account. In this account customer has to maintain a minimum quarterly average balance of RS. 5000/. Anywhere anytime and anyway service is provided to the account holders. when balance exceeds RS. 10000/- money is converted into fixed deposit.
2. Kid-e-Bank: This account is for kids of age 5 to 12 years. Transactions of account is operated by kids on internet. The main purpose of this account is to develop a habit of saving in kids.
3. Bank @ campus: This account is specially for students who are atleast 18 years old. Minimum balance of Rs.500/- needs to be maintained.
4. Current Account : Roaming current account is useful for businessman as it can be operated from anywhere. Bank offers a suite of current account products that meets all banking requirements.
5. Business Multiplier account: This account is a premium current account that understand the needs of small business segment. Features include the flexibility to earn interest on funds making it a truly profitable current account .Minimum quarterly balance of Rs.100000/- is mainitained. Any amount in excess of Rs. 300000/- is converted into FD.
6. Power pay Account: This account is packed with powerful advantages for the employees as well as employer. power pay is a feature rich corporate pay roll account. Convenience is the hallmark of this facility as it significantly cut down the payroll processing work load and reduces paper work.
7. E-broking : it is a 3-in-1account which integrates banking, broking and demat account. This enable customers to trade in shares without going through the hassle of tracking settlement cycles, writing cheques and transfer instructions etc. This account gives various options while trading in shares.
Chapter-2 Investment products
In volatile market situation where there is no certainty of long term fixed returns, investment of funds needs to be handled with prudence. A detailed analysis from the point of view of interest theories, risk management, hedging and liquidity has to be done in order to maintain Highest returns to the customers are much more informed & demanding not only they want good services at the door step but also they compare returns, assess the quality of portfolio. ICICI Bank offers a basket of portfolio’s taking into considerations all the above expectations of customers. These products not only give the investors good returns but also help them to aware about the discriminate portfolio management scheme. These products are
Term Deposit, GOI Relief Bonds, Mutual Fund, ICICI Bonds and Different insurance plans. Details are given below:
2. Term deposit: This Product is simply a fixed deposit of money. The time period vary & interest rates also vary with the period of deposit. ICICI Bank has product in which time period is from 7-14 days to 10 years. Other than NRE Fixed Deposit is all citizen including senior citizen.
3. GOI Relief Bonds: Govt. of India relief bonds allows customers another avenue to earn tax free interest on investment and exemption from wealth tax. Two types of Bonds are available viz 8% Relief Bonds & 7 Relief Bonds. These are for 5 years and 6 years time period. The bonds are rated as “AAA” by CRISIL/CARE. Minimum 1000 can be invested in these Bonds.
4. Mutual Fund: Mutual fund provides an opportunity to partake in a mix of portfolios of various securities tailored to customers profile. In fact it is a effective way of pursue life time financial goal with various advantages. Customers can invest in four types of mutual funds on the basis of risk and return equity funds. Income funds liquid funds and balanced funds.
5. Insurance:- ICICI Prudential life Insurance offers following Insurance Products:-
1) ICICI Pru Save ‘n’ Protect.2) ICICI Pru Re Assure3) ICICI Pru Life Time Pension4) ICICI Pru Assure Invest5) ICICI Pru Cash Back6) ICICI Pru Life Guard
CHAPTER 3 – LOANS
ICICI Bank offers wide variety of Loans Products to suit your requirements. Coupled with convenience of networked branches/ ATMs and facility of E-channels like Internet and Mobile Banking, ICICI Bank brings banking at your doorstep. Select any of our loan product and provide your details online and our representative will contact you for getting loans. ICICI Expanded their reach to more than 140 locations across the country.
1. Home loan :-ICICI is the No.1 Home Loans Provider in the country. ICICI Bank Home Loans offers some unbeatable benefits to its customers - Doorstep Service, Simplified Documentation and Guidance throughout the process. ICICI bank was the first to introduce adjustable rate home loans with interest rates linked to a floating prime lending rate .This product received excellent response from customers across the country and was a key driver of growth in mortgage segment. During the year 2005, ICICI is the No. 1 home loan provider.
2. Personal loan:- ICICI Personal Loan is for Business & other activities like marriage, medical, education etc. Salaried as well as self employed are eligible to apply for loan. Repayment period is also sufficient enough to pay back keeping the nature of loan.
3. Auto Loan:- In auto loan ICICI is market leader. Distribution Network is expanded to 145 cities. They are able to offer competitive products to customers by leveraging economies of scale resulting from the rapid growth in operations. The key drivers of growth were the strength their corporate relationship with the automobile manufacturer & customer service forum.
Avail attractive schemes at competitive interest rates from the No. 1 financier for two wheeler loans in the country. Finance facility upto 90% of the on road cost of the vehicle, repayable in convenient repayment options and comfortable tenors from 6 months to 36 months. Ride home on your dream Two Wheeler with our hassle free finance.
ICICI Bank is the preferred financier for almost all leading tractor manufacturers in the country. Flexible repayment options in tandem with the farmer’s seasonal liquidity. Monthly, quarterly and half yearly repayment tenures from 1 year to 9 years. ICICI HOME LOAN
ICICI bank is No. 1 home loan provider in the country. ICICI Bank provides a variety of loans against residential & Non-residential property. It provides loans not only for existing residential or non-residential property but also for new premises.
ICICI Bank has many home loan products like Purchase-Loan, ICICI Overdraft, Extension loan, Top-up on your existing loan, Resale loan, Loan against property etc. ICICI Bank provides loan to different individuals and different business organisation for personal & commercial reasons.
ICICI bank home loan has a product like Property Overdraft. It is an overdraft that offers a loan limit against your property. In this product bank fixes a limit against your residential or nonresidential premises and then it charges a certain amount of interest on that limitThe amount you withdrawn from you’re a/c will be reckoned for interest. This products offers such a great features to businessman and professionals for their business and profession. Like property
overdraft ICICI Bank home loan has a other product called loan against property, In which bank gives loan against residential or commercial property. Bank gives loan on the basis of house valuation & income eligibility. Bank sanctions loan on the basis of above point and the customer has to pay the installments of the loan he has taken.
STEPS IN PROCESSING OF A LOAN APPLICATION
CREDIT INTERVIEW:-
This is first stage when a person comes in for inquiry. Eligibility is determined on the basis of income, ability to pay the installments, bank account details. These all points keep into consideration while accessing the eligibility of customer.
Eligibility:-
Home Loan:-1. You must be atleast 21 years of age when loan
is sanctioned.2. The loan must terminate before or when you
turn 65 years of age or before retirement, whichever is earlier.
3. You must be employed or self-employed with a regular source of income.
Land loan:-1. You must be at least 21 years of age when the
loan is sanctioned.2. The loan must terminate before or when you
turn 65 years of age or before retirement, whichever is earlier.
3. You must be employed or self-employed with a regular source of income.
4. You must be purchasing a plot of land for residential use.
5. You must be purchasing a plot of land for residential use.
6. The purchase has to be from a development authority or from a registered co-operative society.
7. The purchase of he land must be for the construction of a house.
8. The plot of land must be clearly demarcated with clear boundaries.
Office premise loan:-
1. You must be at least 21 years of age when the loan is sanctioned.
2. The loan must terminate befoe or when you turn 65 years of age.
3. You must self-employed with a regular source of income.
4. The loan can be for the purchase/construction/extension of non-residential property.
5. A loan for renovation or improvement will be given only at the time of acquisition of property.
6. Professionally qualified and self-employed individuals (doctors, pathologists, chartered accountants, cost accountants, company secretaries, architects, engineers, consultants, lawyers, chemists) can apply.
7. A minimum of 3 year’s work experience is a must.
Home Equity Loans:-
1. You must be at least 21 years of age when the loan is sanctioned.
2. The loan must terminate befoe or when you turn 65 years of age.
3. You must self-employed with a regular source of income.
4. You must be the owner of a self-occupied property.
CREDIT ASSISTANCE :-
Before the sanction of loan double check is done and then the file is sent to top authorities for approval. After their approval loan is sanctioned and if they find some discrepancy in the file then the loan amount would not be sanctioned. Credit assistance is a vital task before sanctioning a loan file hence it should be done by the qualified people like financial manager or credit manager. These tasks are really very important in a loan application.
A number of factors are taken into account when assessing your repayment capacity. Your income, age, number of dependants, qualifications, assets and liabilities, stability/ continuity of your employment / business are some of them.
However, there are many ways by which the customer can enhance their eligibility. these are as follows:-
1. A customer can include his/her husband/wife income to increase his/her eligibility. He can add co-owner of the property to his loan application as an co-applicant.
2. A customer can enhance their eligibility by some additional security like bonds, fixed deposits and LIC policies.
3. Before moving further company requires essential documents of the loan applicant. On the basis of which company manager assesses his credibility and other verification.
Documents required by the company:-
1. Passport size photograph.2. Age verification: PAN card, Voters ID, Passport, License.3. Bank statement for the last six months.4. Income Documents e.g. Latest Form 16, Certified IT returns for latest 3 years.5. Admin Fee cheque.6. Loan Enclosure letter.
These are the documents required for sanctioning a loan. You may be asked to submit further legal documents if required by ICICI Bank or its approved lawyers. Customer are being asked to do retain photocopies of all documents being submitted by him or his respondent.
TECHNICAL APPRAISAL AND LEGAL DOCUMENTATION:-
The third process of a loan application is the technical appraisal and legal documentation. This work is done by the engineer or legal authorities. An engineer employed by the company does the technical appraisal. This is undertaken when the loan is acquired for construction purpose.
The other work which is done next is the legal documentation. In this process legal authorities like advocates see all the necessary paper which is needed to verify that the property is related to the loan applicant or not. The papers which are needed for the legal purpose are registry paper of the property, lease-dead, transfer-paper etc.
After the verification of all the technical and legal
documentation file proceeds further. If technical & legal person seeks any dissatisfaction in the paper, they don’t proceed the file further.
FINALIZATION OF SANCTION/REGECTION
After the technical & legal clearance of the property and evaluating the income eligibility of the loan applicant top authorities decide on the loan application that it should be sanctioned or not.
The decision on the loan application regarding the sanction is taken by the finance manager or credit manager of the company. Before sanctioning the loan amount he first deliberately looks on the income eligibility of the applicant, if he has got the required income profile and have the ability to pay the installments on time then only the loan is sanctioned and vice a versa.
In some cases customer doesn’t have the ability that is required by the company as per the sanctioning amount, in that situation company won’t proceed further on that file. Hence sanctioning amount varies individual to individual as their eligibility’s.
LETTER OF SANCTION
After sanctioning the loan application company offers the sanction letter to the loan applicant. This letter includes name of the loan applicant, type of loan, loan amount which has sanctioned by the company, loan tenure that is the time which is being given to the loan applicant by the company, loan installments that is to be paid by the applicant, interest rate on which loan has given and some other details like terms & conditions.
LOAN DISBURSEMENT
After the loan is sanctioned the disbursement is done as per the requirements of the customer. Generally the disbursements are done in three installments in case of home loan and in other cases it is done in one time. The disbursements are made by check only. The time duration for disbursements is six months therefore it should be taken before the six months.
The loan will be disbursed after customer identify and select the property or home that he/she is purchasing and on his/her submission of the requisite legal documents. While he/she may be under the impression that the list of documents asked for is rather extensive, please note that it is for your own good. Each and every single document asked for will be verified and checked to ensure his/her safety.
This process might takes some time but it is just to ensure that he/she is having the clear title on the property. And after the completion of all the legal and technical verifications to ensure that he/she has the full rights to his/her home property. The 230 A Clearance of the seller and / or 37I clearance from the appropriate income tax authorities (if applicable) is also needed.
On satisfactory completion of the above, on registration of the conveyance deed and on the investment of your own contribution, the loan amount (as warranted by the stage of construction) will be disbursed by ICICI Bank. The disbursement will be in favour of the builder/seller.
List of documents those are required for disbursement
Standard Documents:1. Loan Agreements.2. Disbursement Requests.3. Post-dated cheques.4. Personal guarantor’s documents, as the case may be.
SERVICES OFFERED BY ICICI BANK
ICICI bank among the India’s most eminent and leading place provides many value added services to its customers.It provides retail banking, corporate banking services and also services to NRI’s. it also includes insurance, investment,And other financial or non-financial services.
In retail banking services it includes Munshi, Bureau de charge, demat services, doorstep banking, credit facilities, phone banking, internet banking and mobile banking. whereas in insurance services it provides various range of insurance services that covers wide range of risks like life insurance, accidental insurance, mediclaim and other general insurance.
In Investment services it has mutual fund investment, online trading of shares & debentures. It(ICICI Direct.COM) also provides the broking services to the customer which is having leading number of customers who invest their money into the share market. It provides maximum profit and minimum risk having mutual fund investment to its customers. customers obtain maximum gain through its various investment policies. The various retail, corporate or NRI’s services are mentioned below:-
Retail Banking Services:-
The retail business is the key ingredient of growth strategy. With a complete basket of product for various segment like kid-e-bank for kids, bank@campus for students, power pay for salaried employees, ICICI select for high networth individuals and business multiplier for businessmen bank caters to the needs of the society of retail banking.
Services:-
1. Munshi:- It is an online service providing a complete range of accounting and taxation services.
2. Bureau de charge:- By this service customers can fulfil all their foreign currency needs. They can buy internationally valid travellers cheques by the help of this facility.
3. Demat services:- Demat services take away the risk associated with holding physical certificates of the shares and the debentures. Earlier shareholder or debentureholders had to keep the certificate for each transactions. But since the evolution of the dematerialised account the transactions into the shares and debentures has become very easy and risk to keep the certificate has minimised and almost died.
4. Door step banking:- ICICI bank provides the door step banking to its customers. for providing these facilities it charges certain fees. In this facility customers need not to go to bank. Bank collects cheques or cash from their places by their representatives.
5. Credit card:- ICICI bank provides various credit cards to its customer in forms of credit instrument. these cards have certain cash limit and purchase limit. with the help of these cards customers need not to have cash in his pocket at the time of purchasing. whenever a person needs cash he can withdraw from this card or whenever he purchases something he does not need to put cash in his pocket, with the help of this card he can make instantly payment at the time of purchasing.
6. Phonebanking:- With this facility one can conduct almost all banking transactions over the phone. Transactions is being done by his one call. bank charges certain fees for this facility.
7. Mobilebanking:- This service provides the latest information on account balance, credit card outstanding & allows customers to request a check book or account statement. A customer gets alert messages on his mobile when he demands.
8. Internet banking:- ICICI Bank gives the freedom to its customer to get all the information about his account on the internet. A customer gets all needed information on the internet anywhere in world.
Corporate banking services:-
ICICI Bank corporate banking is based on providing customized financial solutions to its clients, tailored to meet their requirements. The corporate banking strategy focus on use of technology to deliver high level of customer satisfaction in a cost effective manner. It focussed strongly on transaction banking services and non-funds based facilities during 2002. It enhanced technology based delivery platform and extended web based services. ICICI bank provides internet banking through ICICI Market.com a finance portal that single point web based interface for all corporate clients.
Services to NRI’s:-
ICICI Bank has established a presence in the international market in areas of information technology, investment banking and product based services for NRI’s. It provides various services not
only to the domestic customer but also to the foreign customer. It provides the foreign money exchange services to its customers.
It provides international debit card to its customers with the help of it customer need not to have money into his pocket in the foreign country too. It transfers fund very quickly by money 2 india. Bank offers an attractive avenue for investing funds in india either in rupees or in foreign currency.
It provides Rupee checking A/c facility to its customers. This account for NRI’s is a good option to manage overseas as well as indian earnings. There are two types of rupee checking accounts first is NRE Checking account for overseas earnings and second is NRI checking a/c for indian earnings.
It also provides money exchange facility to its customers. Customers can exchange their money with the bank by giving him the domestic money.
MANAGEMENT
Managed by board of directors:-
The Board of directors has seventeen members, which is the maximum number of members the board can in accordance with the article of association of the corporation. The board of directors supports the broad principles of corporate governance. In addition to the basic governance issued, the board lays strong emphasis on transparency, accountability and integrity.
The board consists of eminent persons representing various professions including finance, engineering, construction, urban policy and development.
Board of Directors include:-
Mr. N. Vaghul, ChairmanMr. Sridar IyengarMr. R.K. JoshiMr. Lakshmi. N. MittalMr. Anupam PuriMr. Vinod RaiMr. Somesh. R. SatheMr. M.K.SharmaMr. P.M.SinhaProf. Marti G. SubrahmanyamMr. T.S.VijayanMr. V.Prem watsaMs. Chanda Kochhar, Managing Director & CEOMs. Lalita D. Gupte, Joint Managing DirectorMs. Kalpana Morparia, Deputy Managing DirectorMs. Chanda Kochhar, Dr. Nachiket Mor, Executive Director
The Boards focus is on strategy formulation, policy and control, delegation of powers and specifying those issues which are the boards preserve. The responsibility of the management is to implement the strategy for the organisation that is designed to deliver increasing value to the shareholders.
Boards are responsible for the company’s performance. Companies cannot transfer without the trust and support of their shareholders. Management are directed towards to company growth and company stability.
Board of directors are asked to attend meetings that conducted by the chairman or high authorities. Salient topics are raised during the meeting and overcome of the various problem has obtained by the management.
Members of board are elected by the voting in the board meeting that can be annually or according to circumstances. members have the full discretion to represent their ideas or views in the meeting.
In the board of director their can be director who can actively participating in the company management or some of them are non-active who do not play a active role in management.
RESEARCH METHODOLOGY
Research methodology is the method which is used to collect the data. There are various method of data collection after collecting the data, data are summarized and after compiling and consolidating data they are adequately analyzed. And precise conclusion is measured or enumerated. Methods of data collection are as follows:-
Questionnaire: A questionnaire is filled by each customer who visits ICICI Bank for different transactions. In this questionnaire all the products offered by ICICI Bank were mentioned and the customers were required to specify the products of their specific need. The questionnaire used is given as annexure to this report.
Telephonic interviews:- I had collected the various amount of information from different respondents on telephone by talking to them about their needs and expectations from ICICI Bank. What they think about ICICI Bank and what changes they want in the services. If they have any query they are asked to come at bank office to solve that query.
Observation Method:- I used to keenly observe the walk-ins to the ICICI Bank. Their needs and requirements were observed by me through their non-verbal communication, gestures and facial impressions. On finding the specific needs, I used to interact with them and guide them in their decision exercising about a particular product.
Personal Contacts:- In this Method customer are personally contacted for collecting data. This process is very time consuming .I had contacted many person personally for gathering
information. different peoples are asked the same set of questions, answers of that questions can be vary person to person.
DATA ANALYSIS
1. WHICH OF THE FOLLOWING ATTR IBUTES COMPELLED YOU TO MOST OPEN
SAVING ACCOUNT IN ANY BANK?
2:-Which TYPE OF SERVICE PREFERS THE MOST by you?
3:-Which of following banks do you have account?
4:-WHAT TYPE OF ACCOUNT DO YOU HAVE IN BANK?
5:-How many services offered by your banks have been Used By you?
6:-Do you know what type of value added services provide by ICICI BANKS?
7:-How would you rate product offered ICICI Bank than other?
Very Good Good Moderate Less PoorRating 5 4 3 2 1
SURVEY AND OBSERVATION
RESEARCH TOPIC-LOAN SANCTIONED BUT NOT DISBURSED
Competition has increased in loan providers in india. Several banks, Housing finance companies, unorganized financiers, property builders, housing societies, employers, etc are providing easy finance particulary when financed money is backed by the intangible asset like residential house. In india housing finance considered a safe means of finance. Despite all advantages, the competition among financiers from different sectors, with different objectives, compel the financiers to use their resources efficiently. Major outlay in finance companies is the cost of attracting customers through advertisements, publicity, campaigns and services.
Housing finance is not a black box selling. It is a process. Customers are invited by the housing finance companies through advertisements to avail loan facilities. Such requests are processed, appraised and finally the loans are sanctioned.
RESEARCH METHODOLOGY
A sample size of 315 customers was taken to gather data regarding the loan which have been sanctioned but not disbursed with the help of direct marketing. The following profile was used to analyze the collected data.
Profile of customers who have been sanctioned loan but not taken disbursement.
1. File No:2. Name :3. Telephone No:
(Resi) (Office)4. Nature of employment:5. Company’s Name:6. Designation:7. Loan Group:8. Sanction date:9. Sanction Amount:10. Type of property
JDASocietyHousing BoardAny other
11. Reasons:TechnicalLegalCompetitionAny other reason
12. Action Taken:13. Appraiser:14. DSA/DSE:
MAIN REASONS OF LOAN SANCTIONED BUT NOT DISBURSED
The reasons of loan sanctioned but not disbursed is divided into four categories:
TECHNICALIt includes the following reasons:
1. Construction/Extension of house has not been started.2. Required minimum construction work was not completed.
LEGAL
It includes the following reasons:
1. Customer cannot submit the original documents.2. Customer needed loan to make payment of regulisation
(Niyaman) but due to court case date of payment was postponed.
3. Customer was unable to get permission of second mortgage
COMPETITION
It includes the following reasons:
1. Amount sanctioned to customer was less than his requirement.2. Processing time period was long.3. Interest rates are higher.4. Processing fees was very high.5. Equated monthly installment ( EMI) was higher.
6. ICICI do not follow monthly reducing balance method.
Competitors to whom customers turned up
1. SBBJ2. IDBI3. LIC4. SBI5. RAJASTHAN BANK6. STATE BANK OF INDIA7. BIRLA HOUSE FINANCING8. BANK OF BARODA9. ORIENTAL BANK OF COMMERCE10.UNION BANK OF INDIA11.HDFC12.PUNJAB NATIONAL BANK 13.CANFIN HOMES
ANYOTHER
It includes the following reasons:
1. No sanction letter was sent to customers.
2. In Several Cases it has been found that the customer do not want to take disbursement due to non-suitability of terms and conditions of the loan.
3. Customers do approach for housing loan without finanlizing plans at their end. Sometimes either there is change in or the plans get cancelled. Usually it has been found that this happens due to some personal/family problems or reasons.
4. It has been observed that customer has not been issued disbursement cheque on time.
5. In some cases, customers have expressed their dissatisfaction towards service and cooperation by ICICI.
6. Customer has fulfilled needs from internal sources.
7. In some cases, customer was not interested to pay conversion charges.
8. It has been observed that in some cases where loan applicant has applied for allotment of house property to Housing board/Society/JDA/ any other and the process did not mature or completed. Since the basis of loan availment was absent, the loan applicant did not avail disbursement.
9. Customer was unable to give guarantor.
GENERAL RECOMMENDATIONS
Customers should be sent sanction letter on time.
It is suggested that the customer should be informed about all terms and conditions during initial stages.
Customers should be issued disbursement cheque on time.
There should be regular review of customer feedback and proper appraisal be made on several service commitments to the customers.
Processing time period should be short.
Processing fees should be reduced.
It is suggested that interest rates and equated monthly installment(EMI) Should be low.
ICICI should follow monthly reducing balance method.
SUGGESTIONS
1. Bank have to stop copying the western banking models and should care to understand the local ethos and cultural back drop. Bank has to promote innovation and creativity taking into account local conditions. There is still a large segment of unexplored or untapped market need of hour is market creation. There is a need for reengineering of the systems to achieve the targets.
2. Improving financial services in banking would yield substantial benefits to private banks and meet the challeges of competition.
3. There is a need for well trained front line consultants at branch level who directly deal with customers and provide information about various products and services.
4. Problem and complaints of customers should be solved as soon as possible.
5. Network should be increased to the rural by opening new branches in rural areas.
6. New products for new segments based on their income should be introduced.
7. There is need to go for aggressive marketing. A fixed percentage of profit should be allocated for advertising and marketing activities.
8. Man power is the back bone of any organisation. Such policies should be adopted so as to reduce the incidence of employees leaving the organisation.
9. A battle cry in the form of certain noble cause could be given to infuse a sense of service to the country/society in the minds of employees in order to keep their morale up. this will avoid boredom with the job and businessman like relationship between the management and employees.
10. Strategy should be to develop and refine certain products like kid-e-bank, Bank @ campus and bonds, Mutual funds.
Bibliographywww.rbi.org.in
www.moneycontrol.com
www.nseindia.com
www.icicibank.com
www.google.com
Economic times
Business world
Confidential Questionnaire
Dear SIR/MADAM, I am conducting survey on ICICI. I shall be very thankful to give your few minutes to me for answering my few questions below.
Name: _____________________________________ Add: ________________________________________ Contact no: ____________________________________ Gender Male Female E-mail Id : _______________________________________________________ Age Group: 18—25 25—35 35— 45 45—55 55+
Occupation: Journalist Student Professional Retired Person Technical expert Other, please specify:
Income: ≤ 1 laces 1—3 laces 3—5 laces 5—7 laces 7—10 laces +10 laces
1:-WHICH OF THE FOLLOWING ATTRIBUTES COMPELLED YOU MOST TO OPEN SAVING ACCOUNT IN ANY BANK?
(a) ATM cum DEBIT Cards
(b) Cheque Book
(c) Internet Banking/ Phone Banking
(D) Working Hours
(e) Value Added Services
2:-Which TYPE OF SERVICE PREFERS THE MOST by you?
(a) ATM SERVICE
(b) INTERNET BANKING
(c) MOBILE BANKING
(d) CORE BANKING
(e) Retail Banking
3:-Which of following banks do you have account?
(a) ICICI Bank
(b) SBI Bank
(c) HDFC BANK
(D) Axis Bank
(e) Other Pls specify __________________
4:-WHAT TYPE OF ACCOUNT DO YOU HAVE IN BANK?
(a) Saving
(B) Current
(c) Fixed
(d) NRI
(e) Others Pls specify ________________________________________
5:-How many services offered by your banks?
(a) D-Mat A/C
(b) Mutual Funds
(c) e-Instructions
(d) LI & GI
(e) Digitally Signed Statement
6:-How would you know about these services?
(a) Advertisements
(b) Friends and Relatives
(c) Direct Selling Agents
(d) Others Pls specify _______________
7:-What the people think about the Banks?
(a) Necessity for protection security
(b) Imposition of a burden of expenses
(c) A compulsory tool for SAVING
(d) Others Pls specify ________________
8:-What a respondent see in purchase of new plan from Banks?
(a) Standing and goodwill of the company(b) Product range of the company
(c) Advertisement being released by the company
(d) Services being given by the company
9:-Is ICICI Bank Provide better facilities than SBI & HDFC Bank?
(a) Yes
(b) No
(c)Can`t Say
10:-Do you know what type of value added services provide by ICICI BANKS?
(a)-Young star
(b)-Senior citizen
(c)-Pre paid card
(d)-Recurring deposits
(e)-other
11:-How would you rate product offered ICICI Bank than other?
Low 1 – 2 – 3 – 4 – 5 High
12:-How would you rate product service / product vs. cost by ICICI Bank?
Low 1- 2 -3 -4 -5 High
13:-How would you divide 100 points on the basis of service provide by ICICI Bank?
(a)-Less formality
(b)-Flexibility
(c)-Less documentation
(d)-others
14:-How would you rate services offered by ICICI Bank?
(a) Extremely Satisfied
(b) Satisfied
(c) Moderate
(d) Dissatisfied
(e) Extremely Dissatisfied
15:-Would you like any recommendation to ICICI Bank?