development bank as well as case study of icici bank

PRICIPLES & PRACTICES OF BANKING & INSURANCE

DEVELOPMENT BANK

(CASE STUDY OF ICICI BANK)

GROUP MEMBERS ANKITA MEENAKSHI ANCILLA SNEHA PRADNYA TANVI

INDEX Meaning & Definition Formation of Development Banks in

India. Features & Functions Arrangements of Dev. Banks Case study Conclusion

WHAT IS DEVELOPMENT BANK

DEFINITION

Development banks are the financial institutions established to lend (loan) finance (money) on subsidized interest rate. Such lending is sanctioned to promote and develop import sector like agriculture, industry, import-export, housing and allied activities.

FORMATION OF DEVELOPMENT BANKS IN INDIA

Development banking was started after the World War II .

In India, development banking was started immediately after independence .

It provided finance to reconstruct the building & industries which were destroyed in the war .

FEATURES Specialized financial institution. (provides medium term & long term loan) No deposits from public. ( unlike commercial bank it does not accept

deposit) Multi-purpose financial institution. (it also undertakes promotional activities) Financial assistance to both.(private as well as public sector institution) Primary objective. (Is to promote economic development by promoting

investment and entrepreneurial activity in a developing economy)

Major role. (gap filler )

FUNCTIONS To promote & develop (SSI) & (LSI) in India To provide finance(housing sector in India) To enhance the foreign trade of India To help sick industries To encourage the Indian entrepreneurs To promote economic activities (in other backward regions of the country )

Arrangement of development bank in India is depicted as below-

SOURCES OF FUNDSThere are 2 sources Long-Term Sources - capital in various form - Long-term borrowings from financial

institutions and etc Short-Term Sources - Borrowings from RBI - Sale of liquid certificate of deposit

and etc

Case Study

ICICI Bank , Mulund ( west ) branch has opened a Safe Deposit Locker in name of Jaideep Kaur in 2014 .

He had kept valuables in the locker . Subsequently , Deep Kaur also opened a Safe Deposit Locker in the same Branch in 2015

The Bank officer gave the same locker number to Deep Kaur & he kept all the valuables in the locker .

Jaideep Kaur took away all the valuables from the locker

Deep Kaur found his valuables things where missing from the locker .

He complained to the bank in writing and asked for the compensation of rps 50,000.

Then the Bank has to decide it ?

A short info of the work of ICICI Bank It is the largest private bank in India. In present it has 1000 branches & 9000

ATM’s The real challenge for such large brand is

to create something easy to understand, universal ……

Main reason -ICICI was setup as a development bank to provide products & services for corporate segment

In mid 90’s ICICI raised debt from the retail market

In 1994, It established ICICI bank as a commercial bank that is flexible , innovative and prompt in meeting customer requirements .

It also offers many other services such as personal services, capital services , Web trade , life insurance & other services .

BOARD OF DIRECTORS Ms. Chanda Kochhar ( Managing Director & CEO ) Mr. N.S.Kannan( Executive Director ) Mr. M.K. Sharma( Chairman )

OFFERS

Thank You