PROFILES OF SELECT COMMERCIAL BANKS

INTRODUCTION

In this chapter the researcher has made an attempt to present the profile of the

study units viz., Andhra Bank and IOlCl Bank. Therefore, the present chapter is

divided into two parts namely part I and part 11. Part I desaibes the profile of Andhra

Bank and Part I1 describes the profile of ICICl Bank. The description of the study

units provides the reader lucid ~nformation,~bout the management and organizational

aspects, policies and procedures, plans and strategies formulated and adopted from

time to time.

PART-I PROFILE OF ANDHRA BANK

Andhra Bank was founded by Dr.Bhogaraju Pattabhi Sitaramayya in 1923 in

Machilipatnam in Andhra Pradesh. The founder Dr. Bhogaraju Pattabhi Sitaramayya

was an eminent freedom fighter and a multifacted genius. The bank was registered on

November 2oth, 1923 and commenced its business on 28' November 1923 with e paid

up capital of Rs.1.00 lakh and an authorized capital of Rs.10.00 lakh. In 1956,

linguistic division of states was promulgated and Hyderabad was made as the capital

of Andhra Pradesh. The registered office of the bank was subsequently shifted to

Andhra Bank Buildings, Sultan Bazaar, Hyderabad, Andhra Pradesh. The Andhra

Bank moved its head office in 1963 from Machilipatnam to Hyderabad, capital of

Andhra Pradesh for administrative convenience. Bharat Lakshmi Bank was also

started by Pattabhi Sitaramayya and merged 'it with Andhra Bank in 1964. The

government of India during its second round of its bank nationalization has

nationalized Andhra Bank on 15' April 1980. Andhra Bank had introduced credit

cards in the country during the year 1981. After two years, in 1983, the Bank

sponsored its second RRB under the name of Chaitanya Gramma Bank in Guntur

district. Andhra Bank took over the convenorship of State Level Banker's Committee

from State Bank of India (SBI) during the period of 1984. In 1987 AB had sponsored

its third RRB under the name of Godavari Grameena Bank during the year 2000.'

Vision of the Bank

The vision of the bank is.toabe a Trustworthy and efficient with a strong

commitment to increase the market share by generating innovative customer-centered

services and products igniting the passion and creative talents in human resource,

leveraging Technology to expand the clientele and deliver quality and value leading to

customer delight.

Mission of the Bank

The mission of the bank is to amplify the frontline capabilities to serve

customers, develop processes, lev era gin^ technology dynamically, locate and

empower people, fast-cycle knowledge into'innovative products, create possibilities to

reach the business goals and position the bank as a rising star in the financial hori~on.~

New Products and Sewices

AB VISA Platinum Credit Card

Andhra Bank has introduced "AB VISA Platinum Card" which has additional

features such as accidental insurance cover to main card holder up to Rs. 10 lakh and

to add on card holder up to Rs.5 lakh, minimum card limit of Rs.75000 with 50 per

cent as cash drawal limit, baggage insurance up to Rs.25000 and the like. Further the

service charges under this card are at 1.5 per cent on roll over facility, which is one of

the lowest in the industry.

mPay

mPay service was introduced by fhe bank which is a secure and convenient means

of banking from any where and at any time. Under this, customers can check their

account balances, view mini-account statement, know cheque status, note stop

payment of cheques, make donations and transfer h d s (Mobile to Mobile and

Mobile to Account) on pressing the relevant button on mobile. Customers intending to

avail m-PAY facility should possess mobile handset java enabled or Windows mobile

5.0 and above model or Windows mobile professional model with activated OPRS

(General Packet Radio Service).

This is a three in one account that facilitates net based online trading. The

bank under strategic tie up with M/s.Religare Secwities Ltd., (A SEBI Registered

stock broker and a corporate m e m ~ of NSE and BSE) is offering net based online

trading account facility to the clients.

AB BUI Ply Service

Andhra Bank bill pay service is a fast, Secure, Convenient and Smart Solution

to all the customers who are desirous.to make bill payment relating to 'Telecom'

'Electricity' 'Cable' and 'Internet Providers', 'Donations and Charity' 'Insurance'

'Travel Tickets', 'Loan Repayments', 'Online tax', 'Mutual Funds', 'Cradit Card',

'Online shopping and the like using Bank'sjinternet Banking facility.

Information Technology Initiatives

Core Banking Solution (CBS): All Branches of the bank rue under CBS. Customers

of the bank can transact from any of our bnnches'across thc country.

Internet Banking: Intemet banking facility is available to both retail and corporate

customers. More than 110000 customers are availing internet banking facility.

Customer can do the following transactions by using internet banking.

R Customers of the bank can pay their CBDT taxes through intemet banking.

h Fund transfer facility is available from one account to another account (self or

third party) within Andhra Bank as well to accounts maintained with other

banks through intemet banking.

k Bank's customers can pay their utility Bills, Insurance Premia, and Municipal

Taxes and the like using internet banking facility.

B A new e-product viz., AB online s h o w was launched through which the

bank's customers can purchase the desired products/scrvices offered by about

3500 merchants using internet banking.

), The bank's credit card bills can be paid through internet banking facility.

), Bank has also extended facility to its internet banking customers to make

payment of Andhra Pradesh Commercial Tax through internet banking

SMS Alerts

SMS Alerts facility is provided to the customers at free of cost for various

types of transactions across the counter, with drawals of cash through ATMs, POS

transactions, internet banking tmnsaions and the like. As on 31' March 201 1, more

than 17.2 lakh customers are availing this facility. The registration for SMI push alert

facility can be made through bank's ATMs. SMS Pull facility has also been provided

to the customers through which they can get account related information as and when

they require by sending an SMS to bank. The features include.

Balance enquiry

Mini-Statement

Cheque Status and the like

Mobile Banking

The bank introduced transaction based Mobile Banking. This facilitates funds

transfer from mobile to mobile and mobile to account, donations to temples and utility

payments.

Tele banking

Tele banking and interactive-voice-response facilities are available to the

customers. Customer can dial up toll-free number 1800-425-1 5 15 and register online.

The customer can thereafter call the same toll fiee number and utilize the facility for

knowing the account related information.

The bank has decided to shift to core banking system. The bank has signed, on

22" October 2007, an agreement with Hewlett Packard (HP) lndia for implementation

of a comprehensive core banking solution (CBS) at its branches. As per the contract,

the pilot project will be done in about 25 branches and within 24 months, nearly 550

branches will be brought under CBS, covering around 80 per cent of the banks

business. Hyderguda became the first branch when CBS was implemented on 31-03-

2008.

Other initiatives

Statements of account are being sent periodically through ernail to all

registered customers.

All the pensioners data are centralized. Nearly 41073 pensioners are mad

through 1 124 branches.

For quick p m i n g of loan proposals, an automated proms has been

implemented for retail, agriculhual and corporate loans.

The bank customers can racharge (top-up) their prepaid mobiles wing bank's

ATM's

National Electronic Fund Tmsfer (NEFT) and Real Time Gross Settlement

(RTGS) are also integrated with CBS solutions.

Formation of Self-help Croups ( S H G ~ md Lending Elarnce to them

Bank continued its efforts to promote micro finance through formation and

credit linkage of self help groups (SHGs). $inkage of SHGs has been c o n s i d d as a

key activity for the economic development20f the rural areas and for reaching out to

the rural poor and the bank has been actively participating in SHG-bank linkage

programme. During the year 2010-1 1 bank has covered 2.43 lakh groups and provided

financial assistance to the extent of Rs.2,471 crore.

Lending to Micro and Small Enterprises (MSE)

Micro and small enterprises in MSME sector arc given much importance in

lending activity of the Bank. Lending to micro and small enterprises stood at +.7,112

crore for the year ended March 201 1 as against Rs.5,006 crore for the year ended

March 2010, registering a year- on -year growth (y-o-y) of 42.07 per cent. Out of total

lending of Rs.7,112 crore to MSE sector, credit to small enterprises stood at Rs.3,776

crore, while credit to micro enterprises stood at Rs.3,336 mre.

In the annual statement of monetary policy announced in April 2010, RBI had

stipulated that credit to micro and small enterprises segment should grow at 20 per

cent per annum. The growth in this sector during the financial year 2010-1 1 at 42.07

per cent is well above the RBI norm.'

Credit to Weaker Sections

The lending to bdrrowers under 'weaker sections' increased by 16.86 per cent

to Rs.7,000 crore ason 31-03-2011 from Rs.5,990 m r e as on 31-03-2010. Loans and

advances to weaker sections constituted 12.33 per cent of Adjusted Net Bank Credit

(ANBC) against the RBI stipulated norm of 10 per cent. Beneficiaries under weaker

sections include small and marginal farmers, SCIST borrowers, SHG borrowers, and

beneficiaries under DRI, SGSY, SJSRY and the like.

Credit to Minorities

The bank has extended credit facility to minorities. For the financial year

ended March 2011, credit extended to minorities stood at Rs.2610 mre, which

constituted 1 1.3 1 per cent of total priority sector advances.

Credit to SClST Borrowers

The bank also extends credit facilities to SC/ST customers. For the financial

year ended March 201 1, total credit. extended to SCJST borrowers under priority

sector advances stood at Rs.1104 Crore, compared to Rs.1003 Cmre for the year

ended 3 1.03.2010 with an increase of 10.04 per cent.

Retail Lending

Bank has a robust retail model to augment business, spread the credit risk and

have focused attention on high yielding advances. Retail credit portfolio of the bank

increased to Rs.10479 Crore as on 31.03.201 1 compared to Rs.8904 Crore in its

previous year (3 1.03.201 0) registering a y-o-y-growth of 17.69 per cent. The retail

credit constitutes 14.52 per cent of the gross bank credit.

The retail credit was mainly driven by Housing loans. Housing loans (direct)

increased fiom Rs.3480 Crore in 2009-10, to Rs.4479 Crore in 2010-1 1 with an

increase of 28.71 per cent. The Non-Agricultural Gold Loans recorded a growth of

11.72 per cent by increasing from Rs.1382 ~ r o i e in 2009-10 to Rs.1544 Crore as on

31.03.201 1.

Credit to MSME Sector

MSME sector is playing a crucial role in Ihc economic development of our

country. The bank has been according high priority in lending credit to this sector

since a long time,

The MSME advances were at Rs.8,285 crorc as at the end of March 2010 rose

to Rs.11,105 crore registering a yearan-year growth of 34.04 per cent. In order to

mcoura~e the women borrowers + MSME sector, bank is extending a concession of

0.50 per cent in the interest rate. Bank has also set up MSME care cells at head office

and at all zonal offices to facilibte MSME borrowers quick redressal of their

grievances.

Bank is also adhering to the &e of commitment of Banking Codes and

Standards Board of India (BCSBI) regarding lending to MSME sector. The bank has

introduced simplified loan application fonns aldng with check lists to facilitate loan

up to Rs.one m r e for micro and small entehrise borrowers.

Merchant Banking Services

The bank also acts as a' paying Banker' for payment of dividend warrants for

two companies. The bank has also done certification of ESOP for one company. A

Shareholders and investors Grievance cell is functioning as a part of the division. The

bank has received 14 complaints and 8192 requests such as change of address,

Transfer and transmission of shares, non receipt of dividend warrants, non-receipt of

allotment certificateslrefund orders and the like during the year under review. All the

complaints and requests received by the bank have been addressed successhlly. The

bank is approved as Self Certified Syndicate Bank (SCSB) by SEBl for the purpose of

accepting ASBA (Application Supported by Blocked Amount) applications from

investors of lPOs/FPOs. During the year, the bank has participated in 63 IPOIFPO

issues. Select branches of the bank in major cities are designated as SCSBs for

accepting ASBA applications.

Bancassurance and Fee-Based Products

Under bank assurance, the bank is marketing both Life and Non-Life

Insurance products. The bank is offering products/services such as mutual fund

products, collection of telephone bills, direct taxes, commercial taxes, municipal

taxes, and utility payments and the like. During the financial year 2010-1 1, the bank

sold Life Insurance Policies of 'MIS. India First Life Insurance' and collected

premium of Rs.171.58 Crore and earned a commission income of Rs.13.03 Crore. The

bank has a tie-up with ten mutual fimd companies. The bank has entered into tie up

with two more companies during 201 0- 1 1.

The bank is offering depository services to the public under the brand name

oPAB Dad"' The bank i s a Depository Participant (DP) with Cmbd Depository

Services (India) Limited (CDSL) as well as with National Securities Depository

Limited (NSDL).158 branches of the bank are authorized to open demat accounts.

The bank has entered into the bullion business in January 2009.The bank sells gold

coins (24 carat 99.99 per cent purity),The retail sale has been undertaken by the bank

across the country, through its authorized branches in the denominations of 4 grams, 8

grams and 10 grams. During the financial year, the bank sold 306.73 Kgs of gold 1

coins and earned commission income of Rs.3.41 Crore.

Lending Practices

The bank has adopted a board loan policy and has been reviewing and revising

fiom time to time taking market conditions nnd risk perceptions into account. A

comprehensive review and revision of loan policy guidelines was made with the

approval of the board. The bank has prescribed constitution wise, industrylsector

wise, substantial exposure ceilings (Internal ceilings) with in the ceilings fixed by

RBI. An exclusive credit monitoring policy is devised for monitoring the borrowable

accounts at branch, zonal office and Head office levels by devising reporting formats

with monthly frequency to have a healthy portfolio. High value borrowable accounts

are monitored at head office level.

Technical Appraisal Cell PAC) md Syndication Desk

The bank has Technical Appraisal Cell (TAC) which is independent of Credit

Processing and Sanctioning Departments and is'in line with other project consultants

in the market Viz., SBI CAPS, APITCO and the like. The cell undertakes preparation

of Project Information Memorandum (PIM), conducting Techno-Economic Viability

(TEV) Study and Debt Arrangement ( b a n syndication) for corporate clients, The cell

has earned fee-based income of Rs.5.46 Crore during the financial year 2010-1 1.

New Business Group (TUBG)

For the speedy disposal of new customer requirements with a big ticket, the

proposals are routed through the 'New Business Group Chaurnel' and immediate

decisions of in principle sanctions are accorded depending upon the stmgth of the

msal. The bank's Large Corporate ~epaetment is coordinating the meetings of the

New Bushem Group Committee.

crccUt Monitoring Cell

Credit Monitoring Cell of the bank is reconstituted for both large and mid

corporate departments separately to monitor the accounts falling under the powers of

Head office. This monitoring cell is exclusive and separate from the credit monitoring

done by Credit Monitoring and Review Department (CMRD) at head office.

Management Information System

The robust management infot-pation system developed by the bank captwes

data essential for vital functions such as risk management and planning and is serving

as an effective tool for the top management in detision making. Now the bank is in a

position to analyze performance of its major areas in major parameters even on a day-

to-day basis using the information systcm available and take quick decisions suitably.

Compliance Policy

The bank has a comprehensive compliance policy. An executive of the bank of

the rank of Deputy General Manager has been appointed as the 'Chief Compliance

Officer'. As per the policy adopted by the bank, suitable organizational structure has

been laid down defining the roles and responsibilities for compliance oflicars of

various departments and zonal offices. Suitable reporting system is put in place to

ensure effective implementation of the compliance policy.

Adherence to Right to Information ACT

RTI Act, 2005 came into force with effect from 18.10.2005 and thc Act was

implemented in the bank fiom the date of inception as the bank is a public authority

under sec.2 (h) of the Act. All zonal managers are designated as Central Public

Information Officers (CPIOs) for all offices in the zone to deal with request d

render reasonable assistance/infmation. General Manager at head office is the

appellate authority under the Act. During the year 2010-1 1, bank received 589

requests and 128 appeals under RTI Act. All the requests and appeals were responded

to and replied in time.

Customer Service

The bank has been adopting a well defined policy for the redressal of customer

complaints and their timely disposal. Suitable guidelines are in place for the speedy

and transparent redressal at branch, zonal office and head office levels. In order to

facilitate the pensioners all the data relating to central governmeat pensions was

centralized and is linked to central pensionl processing centre to facilitate the timely

credit of pensions and anears without any discrepancies and also to introduce any

new measures for improvement.

Customers' Meet

The bank conducts customers' meet across the country on a single day at

regular intervals so as to obtain the views and suggestions of the customers and

implement them with hue spirit. Entire top management and senior o 6 m fmm head

office and zonal offices visit the branches as special observers and interact with the

customers.

Introduction of "UP Set" services

Excellence in customer service is an important tool for the bank to register

sustained business growth in the present day competitive environment. In the quest

for innovation, the bank has launched technology embedded service "UP Sot" wherein

customers, any where in India can ventilate.their grievances through SMS for

immediate resolution. This newly introduced service "UP Sd ' provides an

opportunity to the ba* to receive the complaints of the customers online and enable

the bank to initiate necessary steps for speedy redressal.

The aggrieved customer is required to type the word "UP Set" in mobile and

forward the same through SMS to 9666604060.011 receipt of the SMS the customer

receives acknowledgment to the mobile instantaneously. Customer service dqmtment

calls back the customer to elicit the details of thc grievance' complaint and takes steps

to resolve the same. This unique product has been well received by customers and the

average redressal time is less than a day.

Industrial Relations

Industrial relations are cordial in the bank. Quarterly meetings an held with

the representatives of the mgnized.efficers 'Federation and Award Employees'

union. Apart from this, meetings are also held at zonal level to sort out the local issues

to improve the working conditions as well as wiomer service. For the benefit of the

employees; enhancement in the limits was wnsidered under staff w e l h schemes.

Training

In the financial year 2010-1 1 to bring about radical changes in the core

capabilities of bank's human capital, various tiaining programmes like Soft skill

development, attitudinal change, and product awareness were conducted. To equip the

employees with changes in the banking sector, workshops and training pmgrarnrnes

on financial inclusion, risk management, NPA management, cyber security,

International Financial Reporting Standards (IFRS) and the like were included in the

calendar of trainings. During the same year 3837 employees were trained through its

training centers which constitute 46.88 per cent of the total staff strength covering

clerks and officers up to MMGS 111. To improve operational efficiency on technology

front, an advanced Programme on core banking solutions was conducted during the

year 2010-1 1 and 2565 employees were trained. The bank has sponsored employees

to orientation programme on Foreign Exchange Organized by other banks on behalf

of Foreign Exchange Dealers Association of India (FEDAI), Mumbai. To have an

international exposure and to equip themselves with the awmplishmcnts in tho

Global financial mark*, 22 employees in different cadres were sent to attend training

programmes wnducted abroad.

SClST Profile

The bank has been implementing the reservation policy for SCs and STs as per

Govt. of India guidelines. ?he representation of SCs and STs is 3065 and 1172

respectively fonning 21.74 per cent and 8.31 per cent of the total work force as on 3 ld

March 201 1. Out of the total officer strength of 8058 as on 3 1" March 201 1, 1329

officers belong to SC category and 550 officers belong to ST category. Bank has

nominated one General Manager as Chief Liaison Officer for SCs and ST8 at head.

office and all Zonal Managers as Liaison OFfim at zonal l a d to a d d m the

grievances of SC and ST employees. The bank has been conducting quarterly joint

meetings with the representatives of 'SC and ST employees' 'Welfare Association of

Andhra Bank'.

Sports and Games

The bank is encouraging sports in oder to facilitate promotion of sports and J

games to achieve excellence. Tlle bank has recruited outstanding sports personnel in a

few disciplines like Cricket, Kabddi and Chess. During the year 2010-1 1, the bank

has won several trophies and medals in the above fields.

Persons with Disabilities (PWD)

The bank is prudently following the Govt. of India guidelines regarding

recruitmelit of persons with disabilities. As at the end of March 201 1, the bank had a

total of 213 staff under 'Persons with Disabilities' category consisting of 70 officers,

101 clerks, 32 subordinate staff and I0 part time sweepers.

Vigilance

Vigilance departments in the overseas bank branches have emphasized three

important aspects of vigilance preventive, detective and punitive aspects for the

implementation of preventive vigilance measures at all levels to check instances of

frauds. The bank has identified and nominated senior level officers (Chief Manager

and above) as Vigilance Officers to look aft& the vigilance matters in all Zonal

offices. As a measure of preventive vigilance, circulars have been issued from time to

time detailing the modus operandi in frauds and the need to be vigilant under such

conditions. A committee was constituted with General Managers headed by Executive

Director to look into the nature of frsuds, analyze the internal control syatems in

vogue, and examine its adequacy and efficacy in the light of computenr and CBS environment to give its suggestions to strengthen the systems, and procedures to

prevent occurrence of frauds. As a part of vigilance Awareness we&, bank has

conducted "Customer awareness meets" a! head office and Zonal ofices1 branches.

All cases of fiauds involving rupees one lakh and above are being individually

reviewed by the audit committee of b e board. Bank has coastitutcd a bad level

special committee to nview hge vdue frauds involving Ra.100 lakh and above.

The bank is having a system of posting information on all the tenders on its

website. The status i.e., award of &dm, is also being posted on the wcbsite

immediately after financialization. Dut to various initiatives taken by the bank the

number of frauds registered has come down to 59 during this financial year as against

94 in the previous year.

Andhra Pradesh Bankers Institute of Ruial and Entrepreneurship Development

(APBIRED)

Andhra Pradesh Bankers Institute of Rural and Entrepreneurship Development

(APBIRED) is a non-profit society fanned by government of Andhra Pradesh

NABARD nnd six public sector banks including Andhra Bank. The institute imparts

capacity building entrepreneurship development, project opportunity guidelines and

the like to rural men and women (in the age group of 18 years to 35 years). Rural

entrepreneurs and rural SHG women also promote transfer of appropriate technology

to farmers and agriculturists in agriculture and allied activities.

Financial Inclusion

In pursuit of the mission of the founder of the bank, various steps were

initiated to provide banking facilities to the financially excluded sections of the

society. As per Govt. of India directions, every village in the country with population

of over 2000 must have an access to banking service outlets by March, 2012, Thwc

outlets need not be brick and mortar branches but can also be through Business

Correspondent (BC) opereted models using Information and Communication

Technology (ICT). The bank has been implementing the schernes/Projects such aa

opening of "NO Frills'.' accounts, Smart Card project for Government benefit

distribution (Electronic Benefit Transfer) in A.P State, SHG lending through Smart

Card project and Financial Literacy and Credit Counseling Centera (FLCCs) in Id

districts.

Andhra Bnnk opened NO F& Accountr

With simplified Know Your Customer (KYC) Procedures, the bank opened

more than 9.10 lakh accounts as .on 3 1.03201 1 which enabled the bank to build

strong relationships with customers paving the way to achieve tinancia1 inclusion.

Budnew Correspondtat (BC) Mddel

The bank is engaging the senices of BCs to reach out to rural clientele

through 'Branchless Banking Model' using Smart Card technology.

AB Smart Card Project

The'bank has implemented Smart Cqd Project for Elech.onic Benefit Transfer

(EBT) of Government Schemes such as Social Security, Pensions and Wage camers

of Mahatma Gandhi National Rural Employment Guarantee (MGNREG) Scheme in

four districts viz., Warangal, East Godavari, Srikakulam and Guntur, of Andhra

Pradesh State. As on 31.03.201 1,2605 Grampanchayats were covercd and 11.37 lakh

enrollments have been registered. Out of these around 10 lakh were issued cards and

an amount of Rs. 136 crore was disbursed through these Smart Cards.

Self Help Groups (SHGs) - Smart Cards

It is a new initiative taken up by the bank to serve SHG customers at their door

steps. The pilot project is under implementation at four branches viz., Rayavaram,

Kadiam, Anaparthi and Bibinagar. So far, 2400 SHGs were recovered under this

scheme. SHG m e m k are able to complete their banking transactions without

making any visit to the branch. Th~s initiative has enabled SHG members to save time

and resources.

Subsidiaries and Regional Rural Banks

Andhra Bank bas one subsidiary, namely, the Andhra Bank Financial Services

Limited (ABFSL), which is wholly-owned by the bank. During the year 2010-11,

ABFSL did not conduct any business. The bank sponsored two RRBs, namely,

Chaitanya Godavari Grameena Bank located in Guntur (Andhra Pradesh), covering

the districts of Guntur, East Godavari and West Godavari and Riehikulya Oramya

Bank in Ganjam and Gajapathi Districts in the state of Orissa, The combined business

of the two RRBs as on 3 1.03.201 1 stood at Rs.2940 crore with a total branch network

of 186. All the branches of RRBs are under CBS. These hvo RRBs earned a Nd Profit

of Rs. 12.3 1 crore for the year mdad 3 1.03.201 1.

Financial Literacy uul Credit CoUnsellng Centerr (FLCCs)

As part of educating the rural people about the various banking and Financial

services, the Bank has opened four FMCs in the lead districts of Andlua PradGsh

viz., East Godavari, West Godavari, Guntur and Srikakulam. These centers take up

awareness programmes for the benefit of rural people. These initiatives primarily aim

at personal' financial education to enable individuals to take effective actions to

improve their overall well-being and avoid distress in financial matters. As part of

Financial Inclusion Plan, the Bank has taken various steps for publicity such as

distribution of pamphlets, display of documentaries (Audio and Video), Publicity

mobile vans and the like. In addition to the above, the bank has taken initiatives to

conduct financial literacy and credit counseling classes for the benefit of the

participants attending training programmes at all 11 Rural Self Employment Training

Institutes (RSETIS) established across the country.

Visits of Parliamentary Committees

The bank is actively involved in organizing and coordinating the

parliamentary committee visits. The following are the details of visits of

parliamentary commiitees dunng the year 20 10- 1 1.

P Parliamentary committee on Government Assurance8 from 4' to 71h July 2010

in Hyderabad.

P Study Tour Programme of parliamentary' standing committee on Finance in

Hyderabad from 21" to 23" October 2010.

>. Parliamentary committee on subordinate Legislation, Rajya sabha in

Hyderabad from 17" to 19' December 201 0.

Financial Inclusion,PIan (FIP)

The bank has adopted 11 14 villages (1060 villages in Andhra Pradesh and 84

villages in other states) with a population above 2000 to provide banking outlete by

March, 2012 under financial inclusion plan. The Bank has opted for ICT baaed outlets

called 'Orsma Kranfhi Kendras' p t a d by the BCs at each village. k u g h tbw

outlets, the Bank proposes to offer &xviccs such as pure savings Bank account,

products, Remittance facility and Micro Insurance facility. The bank has covend 540

villages under this model against the target of 500 villages by 31.03.201 1.

The bank has introduced "AB ~ i b a Kranthi Savings Account" Scheme with

an in-built overdraft facility. No minimum balance or service charge is applicable to

these accounts. As on 31.03.201 1, the Bank odened t 5 3 lakh accounts against the

target of 1.50 lakh accounts.

Andhra Bank Rural Development Trust

Under the aegis of Andhra Bank Rural Development Trust (ABRDT), the

bank has set up 11 Rural Self Employment raini in^ Institutes (RESTIS) which a?

imparting need based training programmes for the benefit of fanners, SHG women,

rural unemployed youth and artisans. These institutes have trained over 96809

entrepreneurs since their inception to till March 201 1. The bank opened yet another

institute at Pmlakernundi, Gajapathi district of Orissa state in January 201 I .

During 2010-1 1 ABRDT the training institutes have conducted 293 training

programmes and trained 7107 candidates which include 1610 scheduled caste, 649

scheduled tribes and'550 candidates of minority community.

Inspection and Audit

As on 31-03-2010, the bank had 1557 branches, out of which 1422 branches

were due for inspection during the year 2010-1 1. Bank has conducted inspection for

all the 1422 branchw due for inspection, thus fulfilling 100 pw cent compliance with

regard to inspection. Apart from this, 45 branches were subjected to inspection under

Foreign Exchange Management Act (FEMA). During 2010-1 1, 275 branches wen

brought under the purview of concurrent audit covering 59.07 per cent of deposits,

74.89 per cent of dvances, and 65.96 per cent of total business of the bank as on 3 1

12-2009. A11 the controlling offices and 20 head office departments were subjected to

systems inspection and financial audit during 20 10- 1 1,

Bank has also identified areas for Off-Site Surveillance (OSS) audit under

CBS environment and developed todls for OSS audit, All the branches which arc

subjected to regular inspection were also covered under OSS audit for the period

ended March 201 1.

Lead B*nk Scheme

The Bank is having Lead Bank responsibility in six districts viz., Guntur, West

Godavari, East Godavari and Srikakulm districts of Andhra Pradesh, Ganjm tuld

Gajapathi districts of Orissa State. The bank is effectively functioning in these

districts in the implementation of Lead Bank Scheme.

State Level Bankers' Committee (SLBC)

Andhra Bank is the convener, bank for state level Bankers' Committee of

Andhra Pradesh State. During the year 2010-1 1, the Bank has conducted 34 meetings

which include 16 steering committee meetings, 4'SLBC meetings, 3 core committee

meetings and the like.

In addition, a sub-committee was constituted at state level to review the

implementation of Financial Inclusion Plans (FIPs) by various banks with Secretary,

Finance (IF) as Coordinator. The committee is regularly reviewing the

implementation of Financial Inclusion Plans (FIPs).

All the quarterly meetings of SLBC were attended by Hon'ble Chief Minister

of Andhra Pradesh State and Senior Ofticials of various Government Departments.

Branding and Communications

The bank has taken up several steps to improve the brand value. As a part of

image building exercise, the bank has canied out publicity activities continuously by

exploring outdoor advertising through channels like Hoardings, Backlit Bus sheltm,

Stalls at All India Industrial Exhibition, DWACRA Bazaar in Hyderabad. Apart from

these, the bank has also'given wide publicity through Print and Electronic Media,

Scrolling on TV channels and advertisements in news papers, magazines and

souvenirs.

Bank's Website

The bank maintains its corporate website in three

languages viz., English, Hindi and Telugu to provide visitors with information about

the bank, its products and services id to facilitate communication with th@ bank and

for availing its services. .

The website was revampdl and developed in the noent past with improved

designs, templates, flashing, images, user friendly navigating mechanism and the like,

which is being updated on continuous'basis. Services like internet banking, inward

remittance, tax payment and other online services are available on the website.

Further, the website contains dynamic modules like inquiry, Feedback, customer

grievance which are customer centric. The website is a storehouse of information and

also acts as a tool of transparency. The bar;k is in the process of making its wabsite

accessible to persons with disabilities as per government of India guidelines.

The bank being the convener of state level banker's committee, Andhra

Pradesh, maintains another website www.slbcap.nic.in. This website communicates

all the proceedings of SLBC meetings, state government directives, instructions to

bankers and public. The bank follows meticulously CERT-In (Indian Computer

Emergency Response Team) the guidelines issued from time to time in maintaining

bank's website securely.

Awards a d Rewards

The bank has received the following awards for its best performance for the

year 2009-10 in 2010-1 1.

Best bank (Mid sized) award by "Business World".

Best bank-performance on key parameters under CAMEL rating adjudged by

"The Analyst" Magazine.

Best bank for the quality of assets awarded by business today

Best public sector bank-banking excellence award by the state f o r m of

banker's club, Kerala.

MSME National Award for outstanding performance in Prime Minister's

Employment Generation Programme (PMEGP).

Corporate Social ResponrlbiUty

The bank has given donations to Charitable Trusta and other Institutions

engaged in the upl ihent of the society and poor people. The Institutions/T~sts like

Adyar Cancer Institute-Chd, LV Prasad Eye InstihttaHyderabad, NlMS-

Hyderabad, Manovikas Spacial ' School for mentally chalicnged~~mnagar,

Alrrajyoth Welfm Tnrst, Kolkat8 for construction of old age homo and the like w m

supported by the bank by donating an amount of Rs.1.87 Crow during the year

2010-11.

Central Library

Andhra Bank's central library and multi media m t e r was inaugurated on 15"

August, 1997 to coincide with the Golden 'ubilee of India's Independence and the J'

Bank's platinum jubilee as a confluence of print and elccmnic knowledge banks.

Whereas the central libraries having over 300 titles on a wide range of subjects like

banking, computers, law, managemeni and personality development, the multimedia

center offers latest facilities of Internet, CD-ROM and vidco viewing. In order to

facilitate easy search and access, the records and operations of the library are fully

computerized with bar coding.

Representative office at New Jersey

Bank has opened its second representative office at New Jerscy [USA] in the

month of November, 2008 after the successful experience of Dubai [UAE]

representative office. The representative office was established to liaise with the

sizeable section ofNRI cornmunlty in New Jersey, USA which is expected to result in

good inflow of NRl deposits apart from ensuring a captive non resident customer base

for the bank.

The bank has 53 specialized branches, catering to the ncads of the specific

segments of clientele. The bank also has two representative (overseas) offices at

Dubai (U.A.E) and New Jersey (USA). As on 31' March, 201 1, the Andhra Bank had

53 specialized branches. The particulars of specialized branches of Andhm Bank are

here under given in table 3.1 .'

Tabk 3.1 Spread of Specialized BrincBes of Andhn Bank over glabc

Source: Andhra Bank Annual Report 201 0- 1 1.

Table 3.1 ,depicts specialized branches that are established to cata to the

needs of different groups of customers all over the country as well as those settled

abroad. Specialized MSME branches number is more than the number of other

branches. The number of auto tech branches is only one. The bank officials might

have proposed the establishment of the branches keeping public needs in mind.

Table 3.2 Authorized, Issued, Subcribed and Clllled-up Capital of

Andhra Bank over a ten year period from 2001-02 to 2010-1 1 (As on 31' March) @.In Crore)

I I I

Souree. Annual Reports of the Andhra Bank fiwn 2001-02 to 2010-1 1.

Iasued, Subscribed and Called-up Capital Year

3

Authorlxed Capital

Table 3.2 shows the authdrized, issued, subscribed and called up capital of

Andhra Bank over a ten year period fiom 2001-02 to 2010-1 1. The capital authorized

by the Andhra Bank for the fust eight paid was Rs. I500 crore. In 2009.1 0 the

authorized capital of Andhra Bank was changed and remained the same upto 2010-1 1.

Coming to the issued, subscribed and called up capital it was Rs45O crore in 2001 4 2

and decreased to Rs.400 crore in 2002-03 and it remained constant till 2004.05. The 1

called up capital was increased to Rs.485 crore in 2005-06 and remained same until

2009-10. In 2010-1 1 the called up capital was increased to Rs.560 crore. This

indicates that the bank authorities mi& have specific targets for certain period of

time to mobilize capital so as to expand the business operations of the bank.

Table 3.3 shows the distribution of bank branches of Andhra Bank over rural,

Table 3.3 Population Groupwise Distribution of Brancbes in

Andhra Bank over a ten year period from 2001-02 to 2010-1 1 (A# on 31" Marcb) (No.of Branches)

semi-urban, urban and metropolitan areas for the period from 2001-02 to 2010-1 1. It

Year

200 1-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

is evident that the population of the rural areas of the country in heavy when

compared to semi-urban, urban a mdropolitan cities. As mutt of it, thc bd.

Sourre: Annual Reports of the Andhra Bank from 2001 -02 to 2010.1 1. Note: Figures in the parentheses indicate percentages to total.

Rural

380 (35.55)

381(34.64)

381(33.78)

385 (32.96)

389(32.07)

396(30.72)

402(29.43)

41 l(28.70)

422(27.10)

43q26.47)

branches that are located in rural areas arc also more in number than those in mi-

".IC Urban

295 (27,60)

307(27.91)

317(28.10)

329 (28.17)

345(28.44)

375(29.09)

399(29.2 1)

412(28.77)

43q27.62)

45q27.94)

Urban

260 (24.32)

268(24.36)

277(24.56)

294 (25.17)

3 14(25.89)

jlg(26.30)

366(26.79)

393(27.45)

449(28.84)

478(29.29)

Metropolitan

134 (12.53)

14q13.09)

153(13.56)

160 (13.70)

165(13.60)

179(13.89)

199(14.57)

216(15,08)

25q16.44)

26q16.30)

,

Total

1069 (100)

1100(100)

1128(100)

1168(100)

1213(100)

1289(100)

1366(100)

1432(100)

1557(100)

1632(100)

urban, urban and metropolitan cities. The number of bmches in nual, semi-urban and

even in urban weas has increased continuously. In metropolitan cities, the number of

bank branches has been increased up'to 2004-05. But in 2005-06 the number of

branches in metropolitan cities decreased again. Its branch number in metropolitan

cities sub-sequentially increased for the remaining period until 2010-1 1 . Fig 1.3 also

discloses the same informatiun pertaining to bank branches of Andhra Bank.

Table 3.4 Dbtribation of Andbra Bank bruiches in differat strte~ lad Uelw territory

ovtr a ten year period from 2001-02 to 2010-11 ' (As on 31' March) (No.of Brmchea)

Table 3.4 shows the distribution of Andhra Bank branches ovet different states

and years. It is evident b m the above table that Andhra Pradesh has occupied

number one position with 1065 branches followed by Orissa 112 branchas, Tamil

Nadu 76 branches, Maharashtra with 66 branches, Kamataka 63 branches, Dtlhi 40

branches and the like. In some other states like Andnmm & Nicobar, ANnachal

M e s h , Himachal Pradesh, Manipur, Mizorarn, Nagaland, Tripura and the like there 1

are no Andhra Bank branches and Dadra Nagar Haveli, Jammu Kashmir, Meghalaya

and Sikkim occupy the least position in having the number of Andhra Bank branches.

Table 3.5 shows the details pertaining to number of ATMs established by

Table 3.5 Details of ATMs established by Andbra Bank over a ten year period from

2001-02 to 201811 (A6 on 31' March) (No.of ATMs)

Andhra Bank over the ten year period f%~ 2001-02 to 2010-1 1. It is u n h t o a d fiom

Y ear

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07 -

2007-08

2008-09

2009-10

2010-1 1

the table that the total a number of ATMs has been increased from year to yea.

ATMs o n i t e and off-site have also been i n c r d from year to year over a ten year

Source: 1) Annual Reports of the Andhra Bank from 2001 -02 to 2010-1 1. 2) RBI, Report on Trend and Progress of Banking in India from 2002 to 201 1.

Note: Figures in the indicate percentages to total.

On-Site

51 (25.50)

57 (25.91)

63 (23.16)

77(23.33)

94(24.04)

13q25.67)

201 (30.64)

248(34.2 1)

37q43.07)

452(46.08)

period. The off-site ATMs number has been increased significantly than the number

of ATMs on-site. The increase in the hmber of ATMs on the off-site is tsomcndow

Off-Site

149 (74.50)

163 (74.09)

209 (76.84)

253(76,67)

297(75.96)

388(74.33)

455(69.36)

477(65.79)

489(56.93)

529(53.92)

wben compared with the increase in the number of ATMs in on-site.

Totnl

200 (100)

220 (100)

272(100)

33q100)

391(100)

522(100)

656(100)

725(100)

859(100)

981(100)

Table 3.6 shows the staff pattern in Andhra Bank over ten year period from

Tabk 3.6 Staff Pattern in Andhn Bank over a ten year period from 200142 to 2010-1 1

(As on 31' March) (Naof employees)

2001-02 to 2010-1 1. Total column shows that the total number of employees has

increased b m 12812 in 2001-02 to. 14028 in 2005-06 and demasad from 13831 in

2006-07 to 13387 in 2007-08. Again the total number of staff has increased in 2008-

Year

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-I1

09 and 2009-10. In 2010-1 1 the number has decieased. The officers number has been

increased from 6483 in 2001-02 to 8072 in 2005-06 then it m e down to 8021 in

Source: 1) Annual Reports of the Andhra Bank from 2001-02 to 2010-1 1. 2) Statistical Tables Relating to Banks in India 2002-201 Isss 3) lndian Bank's Association

Note: Figures in the parentheses indicate percentages to total.

Ofnm

6483(50.61)

71 8q55.27)

7753(59.20)

7,989(60.95)

8,072(57.54)

8,021 (58.00)

8,437(63.02)

8,678(60.88)

8,41 l(58.85)

8,058(57.16)

2006-07 and increased from 8437 in 2007-08 to 8678 in 2008-09 and again it come

down from 841 1 in 2009-10 to 8058 in 2010-1 1 .The clerks number in 2001-02 in

Andhra Bank was 4108 and decreased from 3519 in 2002-03 to 2633 in 2007-08. The

number of clerical staff has i n d from 3059 in 2008-09 to 3248 in 2010-1 1.

Clerks

4108(32.06)

3519(27.09)

3 124(2,3.86)

2,885(22.01)

2,827(20.15)

2,675(19.34)

2,633(19.67)'

3,059(21.46)

3,l lS(22.22)

3,248(23.04)

The number of sub-staff has increased From 2221 in 2001 -02 to 2292 in 2002-

03. In 2003-04 it was 2218 and it increased h 2233 in 2004-05 lo 3135 in 2006-07.

Sub-Stalf

2221(17.33)

2292(17.64)

221 g(16.94)

2,233(17.04)

3,129(22.3 1)

3,135(22.67)

2,317(17.31)

2,518(17.67)

2,706(18.93)

2,792(19.80)

The number of sub-staff come down to 23 17 in 2007-08 and M a to 25 18 in 2008-

Total

12812(100)

12991(100)

l3095(100)

13 107(100)

14028(100)

13831(100)

13387(100)

14255(100)

14292(100)

14098(100)

09. The number of sub-staff was increwd from 2706 in 2009-10 to 2792 in 2010-1 1.

Fluauating trend has been obmvd in the case of officm, clerks and sjub-staff in

PART-If PROFILE OF ICICI BANK

MCORPORATlON OF ICICI BANK

Industrial Credit and lnvestmki Corporation of India limited @ere in after,

r e f 4 to as ICICl Bank Ltd) was set up in 1955 as a public limited company by the

Government of India, the World Bank and some private institutions with a paid-up

share capital of Rs.5 crore. Its primary adjective was to provide foreign cumncy

loans to Indian companies. But gradually it expanded its activities into the areas of

project finance, under writing, venture capital, mutual funds and establishment of

various subsidiaries including that of IClCl Bank in 1994. The institution was able to

grasp the oppomities thrown up by the economic liberalization of early nineties and

grow into a formidable force in the Indian financial scene. But market realities soon

forced IClCI Ltd to wind-down many of its subsidiaries.

When RBI allowed Indian development banks in October, 2001 to convert

themselves into universal banks, IClCI was the sole applicant to RBI and presented ils

case with a detailed scheme of reverse merger of itself with lClCl Bank.

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

financial institution, and was its wholly-owned subsidiary. ICICl's share holding in

IClCI Bank was reduced to 46 per cent through a public offering of sham in India in

the fiscal year 1998, an equity offering in the fonn of American Depository Receipts

(ADRs) listed on the New York Stock Exchange'(NYSE) in fiscal 2000,lCICI Bank's

acquisition of Bank of Madura limited in an all-stock amalgamation in f i d 2001,

and secondary market sales by IClCI to institutional investors in the fiscal ycar 2001

and the fiscal year 2002 are important milestones. lClCI was formed in 1955 at the

initiative of the World Bank, the Government of India and qrascatntives of M i a n

industry. The principal objective was to create a development financial institution for

providing medium-term and long-tenn project financing to Mian busi~lc#rsea. In the

19908, ICICl transformed its business from a developmental financial institution

offering only project financing to a diversified financial services group offering a

wide variety of products and services, both dircdly and througb r number of

subsidiaries and affiliates like lCiCI Bank. In 1999, IClCI bdcamc the first bank or

financial institution fiom nw-Japan Mi to be listed on the NYSE.

A h consideration of d o g s corporate stmturing altematiyw in the context

of tht emerging competitive scenario in the Indian banking industry, and the move

towards universal banking, the managvents of ICfCl and lClCl Bank formal the

view that the merger of IClCl with iCICI Bank would be the optimal W g i c

alternative for both entities, and would create the optimal legal stntchlre for the lClCI

groups universal banking stmtegy. The merger would dance value for IClCI 1

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 throygh a large capital base and scale of

operations, seamless access b ICICI's strong carporate relationships built up over

five decade entry into new business segments, higher market share in various business

segments, particularly fee-based services, and access to the vast talent pool of 1ClCl

and its subsidiaries. In October 2002, the board of directors of IClCl and IClCl Bank

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

lCICl personal financial services limited and 1ClCI capital services limited, with

ICICI Bank. The merger was approved by shareholders of IClCl and IClCl Bank in

January 2002, by the high court of Gujarat at Ahmadabad 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 lClC1 group's financing and banking operations, both

wholesale and retail, have been integrated in a single entity.

Merger of ICICI and IClCI Bank

The merger is a culmination of a dream, which began five years ago. This

process was initiated in 1996. By the time when Shipping Credit and Investment

Company of India (SCICI) merged with ICICI, in 1997-98 IClCl acquired ITC classic

and Anagram finance by way of acquisition, in 2000, IClCl Bank gobbled up Bank of

Madwa. Reverse merger of IClCIe Managing Director and Chief Executive Officer,

K.V.Kamath, started articulating it in 1996. At tirst, it s m c d impossibility, latar it

looked imperative.

On 25' Odober India's first.trucblue universal bank was bom, as lClCI

revawmerged into its sibling IClCI Bank to aeate Rs.95,OOO wore asset basc

monolithic, only the d bank a f ta SBI that has an asset base of b.316000 m.

HDFC bank is I& at third place'with a size of Rs.19000 m. Earlier the revewe

merger looked like a bailout strategy for non-performing assets (NPAs) ridden ICICI,

but later the merger seemed justified'@ause of possibility of nummus bcnefits

throu@ size and diverse portfolio of products of two entities. Though SWAP ration

for merger it was decided to offer two shares of ICICI for one share of IClCl Bank.

Merged entity operations have become fully successful from 31" March 2002. ICICl

took five-months to meet all regulatory requirements.

The other interesting aspect of-reverse merger is its methodology. lCICI Bank

has adopted the 'purchase method' of accounting principles (GAAP) for the maget,

unique in India. ICICl's assets and liabilities were 'fairly valued' for the purpose of

incorporation in the accounts of lCICl Bank on the appointed date. This accounting

practice is an opportunity for ICICI to bring down its level of NPAs.

The new entity will have the capital adequacy ratio of 11.25 per cent with Tier

I capital contributing 7.5 per cent and Tier 11 3.75 per cent!

Vision of the bank

To be the leading provider of financial services in India and be a major global

bank.

Mission of the bank

The IClCI Bank leverage are people, technology, speed and financial capital to:

be the banker of first choice for customers by delivering high quality, world-

class products and services.

# expand the frontiers of business globally

play a proactive role in the full realization of India's potential

maintain a healthy financial profile and diversify earnings across businw and

geographies

maintain high standards of governance and ethics

contribute positively to the various countries and markets in which the Bank

opaates

mate value for stakebolk

Objecfives of IClCI Bank

The objectives of the ICICI Bank are

to create, expand and modernize &taprisk

to encourage private capital, both external and internal, to p w .

to provide finance for long and medium-tk needs,

r to underwrite new issues

to guarantee loans

to provide guidance in managdial, technical and administrative mattersS

Listing of ICICI shares

lClCl Bank's equity shares are listed in India on stock exchanges at Mumbai,

National Stock Exchange of India, Kolkata and Vadodara. Its American dgository

receipts (ADRs) are listed on the New York Stock Exchange (NYSE).

Role of ICICI in Industrial Development

The IClCI has provided a major share of assistance in foreign currency. The

industries to which it has given credit have generally been those, which require

foreign credit. Non-traditional and growth-oriented industries like chemicals, metal

products, machinery manufacturers have received a major share of finance. Its

assistance to these industries has beh concentrated in Maharashtra, Gujarat, Tamil

Nadu and West Bengal. The IClCl has also giyen assistance to backward and less

developed regions in the country. It has provided concessional finance for their

promotion.

Modernization of Industries

The ICICI has also participated in the consortium of IDBI, 1FC and other

financial institutions to provide assistance on 'soA' terms for modernization of

industries like cotton textiles, jute, sugar, cement and engineering industry.

Merchant Banking Mvttlon

The ICICI is the first financial institution to have a marchent banking division

in 1974. It assists new entnpfaMxlrs thtough this division by giving thiem mound

advice on tfie natun: of the prow It also promotes their vcntllre duwgh the NM. It

also supervises and Bllows-up the progress of these concerns. Another now and

promotional role has been to appoint its mminee directors on firms, which have

received its assistance for constant evalitation of these projects.

Researcb and Development Financing

It also participated ackively in financing of industrial firms for initiating I

research and development through its sponsored scheme called SPREAD or

Sponsored Research and Development Programme. It has focused its attention to

agriculture through ACE or ~griculhLa1 ~omm&idization and Enterprise Project.

This project aims at increasing agricultural, business sector through private

investment. It provides funds for commercial energy research. The scheme is called

Programme for Acceleration of Commercial Energy Research (PACER). The lClC1

has another Programme for Advancement of Commercial Technology (PACT), which

is based on market-oriented research and development.

Promotion of Institutions

The IClCl also sponsored a mutual fund in 1993. It was called lClCl Trust

Ltd. This mutual fund launched its tirst 100 crore issue on November 30, 1993. To

provide even more services to the investor, it promoted another wholly owned

subsidiary called ISERV with the objective of offering services as registrars and

transfer agents. In 1994, ICICl also has set up a bank called the lClCI Banking

Corporation Ltd. This bank has a 75 per cent ownership of ICICI. The ICICI also

formed a joint venture in 1993 for the export of auto components. This joint venture ie

formed to act as a single window-trading house. It has also set up the Credit Rating

Information Services of India Ltd. (CRISIL) with the UTI with the objective of rating

the different financial instruments offered to the investors. It promoted the

Technology Development and Information Company of lndia Ltd. (TDICI) to

undertake venture capital and technology up gradation financing, It has also

associated itself with UTI and lFCl for promoting OTCEI end Stock Holding

Corporation of India (SHCI) for streamlining trading of $ham.

IFCI has promoted academic Inearning in financial mnnagcmont by setting up

three institutes. These are institutes'for financial m m g u n m t and IWWC~, the lClCI

Foundation for R& and Devdopment and Indian Institute fot P m m Training

using the Indian academic foundatiqn for Globalization of Indim Endusby in 1993.

This foundation aims at nstructuring value enginowing and competition analysis.

The ICICl's resources pattern aid functioning have undergone a change since

it was setup. Its foreign currency resowces have declined. It now relies on domestic

rupee resources. Thus lCICI continues to changc'lts financing activities in accordance

with the Anemic scenario in India. Thert have been further developments in the

ICICI. Its commercial banking operations have done well. It has offered a reverse

merger whereby the lClCl was merged with the commercial b d .

Insurance Business

ICICI has also entered into insurance through lClCl prudential. Its single

premium scheme is rated very high and is extremely popular with individuals who

have taken retirement under the Voluntary Retirement Scheme (VRS). It has launched

eight schemes one of the new schemes called 'pru life time combine pmtection' with

market linked schemes.

Consumer Financing

1ClCI also fdcilitates other lending services. Commercial banks have been

lending to private individuals for purchasiriy cars. IClCI has also stepped into

financing of cars. This has brought about good returns to the bank.

Merger of the Bank of Rajasthan limited with.ICICI Bank

The Bank of Rajasthan Limited (Bank of Rajasthan), a banking company

incorporated within the meaning of companies Act, 1956 and licensed by R m c

Bank of India (RBI) under the Banking Regulation Act, 1949 was amalgamated with

IClCI Bank Limited (ICICI B a d t h e bank) with effect From close of business on

August 12&, 2010 in terms of the scheme of amalgamation (the scheme) approved by

RBI vide its order DBOD No.PSBD 259iJ116.01.65612010-11 dated August 12", 2010

under sub section (4) of section 44A of the Banking Regulation Act, 1949. The

consideration for the emalgamation was 25 equity shards of ICICI Bank of the face

value of Rs. 10 each fully paid up for every 1 18 equity shares of Rs. 10 each of Bank

of R a j h . Accordingly, lCICl B& allotted 3 1,323,95 1 equity shares to the shan

holders of Bank of Rajesthan on* August 26", 2010 and 2,860,170 equity sham,

which were earlier kept in abeyance @ng civil appeal, on Novunber 25", 2010.

Subsldluy Companies of lClCI Bank '

As on 31' March, 201 1, lClCI Bank had 17 subsidiaries listed here under

Domestic Subsidiaries

ICICI Prudential Life Insurance Company Limited

lCICI Lombard General Insurance Company Limited

ICICl Prudential Asset Management Company Limited

IClCl Prudential Trust Limited

IClCl Securities Limited

IClCl Securities Primary Dealership Limited

IClCi Venture Funds Management Company Limited

IClCl Home Finance Company Limited

IClCI Investment Management Company Limited

IClCI Trusteeship Setvices Limited

IClCI Prudential Pension Funds Management Company Limited

International Subsidiaries

ICICI Bank UK PLC

ICIC1 Bank Canada

IClCI Bank Eurasia Limited Liability coipany

IClCl Securities Holding Inc

ICICl Securities Inc

lClC1 International Limited

Key Subsidiaries

Brief description of some of the key subsidiaries, both domatic and

international, is given here under in the following paras.

lCICI Prudential Life Insurance Coaprny (ICICI Life):

lCIC1 life mainbind its miuket.lesdmhip in the private sector with an o v d l

mark& share of 7.3 per cent b a d 4 retail new b u s h weighted received pmium

in fiscal year 201 1, With effect from September la, 2010, the lnmmce Regulatory

'1109

and Development Authority (IRDA) specified cchangEs mcb as cap on sunendm

charges, charges applicable h m the sixth year of policy, an increase in minimum

premium paying t m and introductioli of minimum guaranteed returns on pension

products. ICICI life total premium increased by 8.2 per cent td Rs.178.81 billion in

the fiscal year 201 1. ICICI life new business annualized premium equivalent was

Rs.39.75 billion in the fiscal 201 1. ICICl life achieved a profit after tex of Rs.8.08 I

billion in fiscal 201 1. The expenses ratio, defined as the retio of expenses (excluding

commission and front line sales cost) to total premium, has decreased from 19.5per

cent in fiscal 2010 to 17.3 per cent in'fiscal2011: lClCl life unaudited new business

profit in fiscal 201 1 was Rs.7.13 billion.

ICICl Lombard General Insurance Company (ICICI General)

IClCI General maintained its leadership in the private sector with an o v d l

market share of 9.6 per cent in fiscal 201 1. IClCl General" gross written premium

grew by 28.5 per cent from Rs.34.31 billion in fiscal 2010 to Rs.44.08 billion during

fiscal 201 1. As per Insurance Regulatory and Development Authority's order datcd

March 121h, 201 1, all general insurance companies were required to provide for losses

on the third party motor pool, a multilateral reinsurance arrangement covering third

party risk of commercial vehicles, at a prouiional rate of 153 per ccnt over fiscal

2008 to fiscal 201 1 compared to the earlier loss rate of 122 per cent to127 par cent.

The impact of the same on IClCI General was Rs.2.72 billion. As a result of the

negative impact on this account, lClCI general recorded a loss of Rs.0.80 billion in

fiscal 201 1.

lCICl Prudentla1 Asset Management Company (ICICI AMC)

ICICI AMC is the third largest asset management company in lndia with an

average sum of Rs.734.66 billion for the quarter ended March 3 I*, 201 1. lClCI AMC

achieved a profit after tax of Rs.0.72 billion in the fiscal year 201 1.

ICICI Venture Funds Management Company Limlted (ICICI Venture)

lCICI venture maintained its leadership position es a spaciaIist alternative

assets manager based in India ICICI 'venture achieved a profit after tax of Rs.0.72

billion in the fiscal year 201 1.

ICICI Securities Limited and lClCI Securitks Primary Dealenhip LMted

IClCI securities achieved a profit after tax of Rs.1 .I 3 billion in fiscal 201 1.

IClCl securities primary dealership achieved a profit &a tax of Rs.0.53 billion in the

fiscal year 201 1.

ICICI Bank UK PLC (ICICI Bank UK) ,

ICICI Bank UK is a 1 1 1 service bank that offers retail, corporate and

investment banking and private banki~g services in the United Kingdom and Europe.

During the year, lClCl Bank UK focused on liquidity management, enhancing

profitability and risk containment through balanbe sheet consideration. IClCl Bank

UK's profit after tax for fiscal 201 1 was USD 36.6 million. On March 31U, 201 1,

ICICI Bank UK had total assets of USD 6.4 billion. lClCl Bank UK's capital position

continued to be strong with a capital adequacy ratio of 2 3 . 1 ~ cent on March

3ISi,2011.

ICICI Bank Canada

ICICI Bank Canada is a full-service direct bank that o f f i a wide range of

financial solutions to cater to personal, commercial, corporate, investment, treasury

and trade requirements. ICICl Bank Canada's profit afler tax for fiscal 201 1 was

CAD 32.4 million. As on March 3Ia', 201 1, lClCl Bank Canada had total assets of

CAD 4.5 billion. ICICI Bank Canada had a capital adequacy ratio of 26.3 per c a t on

March 31,2011.

Mobile Banking

The ICICI Bank has introduced innovations in mobile banking, Such

innovations have transformed the mobile phone into a personal banking assistant for

the customers of ICICI Bank. Be it simple SMS alerts, service requests using instant

messaging or the imobile application, a wide range of mobile banking services takes

care of customer's varied needs.

Today, customers can use their mobile phones not only to check account

balances and transfer hds but also tdapply for a loan. The ICICl Bank innovative

mobile banking service takes convariglce to a different level by enabling custmm

to buy flight and movie tick& and also shop for appanls, boob ad Bowsre.

111

ATM

The ICICI Bank ATM is much more than just a money-dispensing machine.

Stated- of-the-& -technology'has led to redefining convenience for the customer.

With newly introduced innovative features, the IClCl Bank ATM is now equipped to

take care of banking needs that go beyond basic cash withdrawal. Today IClCl Bank

ATMs offer services such as opening fixed deposits, payment of crcdit card and utility

bills, payment of insurance prcmit&, mobile re-charges and 'Ultm Fast Cash' which

facilitates withdrawal of Rs.5,000 in a single click.

The bank has used tecllnology to transform IClCl Bank's vast network of

ATMs to provide grcater convenience and efticiency to IClCl Bank customers,

thereby almost making them a network of mini branches.

Phone Banking

The officers of IClCl Bank hnve crcatcd one of Asia's largest in house

harnessed technologies to offer valucd services, which not only cnable customers to

register banking queries efficiently but also carryout transactions. Customers can now

pay their utility and credit card bills through Interactive Voice Response System

(IVRS). The phone banking service is available in various regional languages, enablev

instantaneous password generation for internct banking and even has a11 "uuto-dialer"

facility through which their customers can request for a call back.

Website

lCICl Bank, India's largest private sector bank, today announced that they

launched a Hindi website, to offer convcnience and a widcr reach to their customer.

ICICl Bank's website is amongst the top 10 most visitcd banking and financial

websites in the world. With wider internet connectivity, an increarting population can

now access the website to suit their banking requirements. Ms.Chanda Kochhar,

Managing Director and CEO, lClCI Bank Ltd. Said, that their "Bank is synonymous

with growth and innovation focused on customers requirements. They have launched

the Hindi version of the personal banking pages on their website to offer heir

customers with the power to use technology for convenient banking".

The ICICI Bank website (www.icicibank.com) of fm a virtual branch which

allows customers to conduct their entire range of banking services online, any where,

any time, customers can n~w'~ccess their bank, credit card, loans and demat accounts;

transfer money, pay bills, open fixed deposits, place a request for different types of

services at their convenience.

Key Business Operations

The business operations of IClCI Bank can be broadly classified into the key

incon-ie generating areas such as retail banking, international banking, rural bnnkinlq,

corporate banking and treasury operations. The functioning of some of the key

divisions is enumerated below:

Chart 3.1: Key Business Operations of IClCl Bank

lClCI Bank

Retail Corporate International Rural Banking Banking Banking Banking

Source: ICICI Bank, Global Research

Retail Banking

After significant moderation 'in previous years, retail credit growth in the

system picked up pace in 201 1. As per data published by RBI for the pcriod up to

March 25", 201 1, yenr-on-year retail credit growth was about 17 per cent.

The bank officials of lClCl Bank have continued to believe that retail credit in

India has robust long-tm growth potential, driven by sound fundamentals of rising

income levels and favourable demographic profile, They continue to focus on sclecl

retail asset segments like housing and vehicle loans where they expect significant

demand over the medium to long term. They are also seeing smaller markets beyond

the large urban centers emerging as important drivers of growth in this segment. in

addition, customer segments are now maturing given the increase in incomes. These

distinct customer segments, with widely different requirem~ts and risk-reward

characteristics, require specialized strategies. The officials of ICICI Bank have

believed that their knowledge of the customer and insights into the Indian market

position will help them well to take advantage of these opportunities.

lClCl Bank branches are the key points of customer acquisition and service.

Accordingly, their organizational structure has been shaped to provide greater

empowerment to thr-ir branches. The branch network is expected to serve as an

integrated channel for deposit mdbilization, rctail asset organization and distribution

of third party products as well as the focal point for customer service. The out bound

sales teams have been strcrfgthcned and brought under branch supervision. They are

supported by the operations and phone banking teams to deliver high quality service,

customer retention and up-selling; and by a strategic pmduct and service desim team

to design product and service strategies for different customer segments, They have

deepened their engagement and relationship w~th customers and created more

opportunities for cross-selling their other products by introducing dedicated privilege

banking areas, which arc manned by specially trainned privilege bankers, and

exclusive wealth branches for their high net worth customers. The bank's focus

during the year was on delivering superior customer scrvice in line with its articulated

Khayaal Aapka proposition.

During 201 1, they continued their focus on increasing the proportion of low-

cost retail deposits in their hnding base. Their current and savings account (CASA)

deposits as a percentage of total deposits increased From 41.7 per cent at March 3IL',

2010 to 45.1 per cent at March 31", 201 1.

During the year, their rctail disbursements increwed as they focused on

opportunities in residential mortgages, vehicle finance and construction equipment

finance. The re-alignment of their retail sales and scrvice architecture helped them to

increase reach while simultaneously focusing on customer service. They sourced an

increasing proportion of their mortgage business through their branch net work. In

addition to mortgages, they also saw traction in auto loans, commercial loans,

commercial vehicle financing and construction equipment business in 201 1.

Small Enterprises

Medium and small enterprises are imporlant engine8 of growth and reflect

India's entreprenhrial energy, lCICI Bank has offered complete banking solutions to

114

small and medium en t i r i ses across indusby segment. ICICI Bunk officials have

supported the growth of the small and medium enterprises sector while adopting a

cluster based financing apiroach for enterprises with a homogeneous profile in

industries such as infrastructure, engineering, information technology, education, life-

sciences and a@-based businesses. l.CICI Bank has also o f f e d the supply chain

financing solutions to the channe1,partners of large corporates.

During fiscal 201 1 the oficials of IClCl Bank have stm~gthened the

relationship and increasd the sales by increasing their presence with p t e r

empowerment at zonal levels. This has allowed them to deepen their customer

relationships and supplement the customer acquisitiotl by leveraging their branch

network along with their commercial banking franchise. The bank also wnhibuted

significantly to the SME eco-systm through multiple initiatives such as SME CEOs

knowledge series, emerging India awards, SME expos and the SME toolkit-an online

business and advisory resource. They have a long tradition of partnering entrepreneurs

early in their growth phase, building lasting and mutually beneficial relationships that

deliver recurring value. The IClCI Bank continues lo furthcr strengthen its penetration

in this segment.

Corporate Banking

The corporate banking strategy is based on providing cumprehensive and

customized financial solutions to. their corporate customers. Thcy offered

comprehensive suite of corporate banking products including rupce and foreign

currency debt, working capital credit, structured financing, loan syndication and

commercial banking products and services. The corporate and investment banking

financier is built around a core relationship team that has strong relationships with

almost all of the country's corporate houses. The relationship team is product agnostic

and is responsible for managing banking relationships with clients. They have also put

in place product specific teams with a view to focus on designing financial solutions

for clients spread across structured finance, projcct finance, loan syndication and

markets. The structured finance group is responsible for working with the relationship

team in India and the international subsidiaries and branches for structuring and

execution of investment banking mandates and other transactions

The IClCI bank& bas a commercial banking p a p working closely with the

corporate banking p u p for growing its business through identified branches. Their

strategy for growth in commercial banks, i.e., of meeting the rtlgular banking

requirements of companies for transactions and trade is based on leveraging their

strong client relationships and focusiry on enhancing client serving capability at the

operational level.

The officials of lClCl Bank have enhanced their client servicing capability by

the effective use of "Mega' Branches" spread across all major commercial centres

across the country catering to clients with specialized coinmercial banking necds,

These branches have highly cohesive and dedicated customer focused transaction

t e n s , led by senior branch heads, to service customers and provide a better

transactional experience to thc client. A11 efficient central operations team

complements the service delivery capability.

The relationship team also works with ICICI Bank n~arkets group to assist

customers in devising and executing risk management strategies to address foreign

currency, interest rate and liquidity risks. The IClCl Bank loan syndication franchise

enables them to structure, under write and syndicntc npw and foreign currency debt

with lndian and offshore investors. The oficials of IClCI Bank have built robust

sector spccific syndication skills across project finance, mergers and acquisition

financing and structured finance to provide optimal financing solutions.

Thr continuing expansion of lndian companies provides significant

opportunities for the lCICI Bank corporate banking business. The lClCl Bark

expertise lies in structuring client specific solutions couplcd with scamless delivery

for an enriching customer experience. The officials of lClCl Bank continued to focus

on increasing the granularity and stability of their revenue streams by executing their

transaction banking and trade services strategy, while keeping a close watch on credit

quality and further deepening their client relationships,

Project Finance

With strong momentum in the Indian economy, there has bear a significant

increase in investment activity with atpacity additions across sectors such as

infrastructure, power, oil and gas, urban development and manufacturing, The lClCI

Bank expects a signifkmt increase in infrastructure tinancing requirements going

forward. The power sector will witness the execution of large projects given the

energy needs of the country. and the govemment's energy expansion programmes.

Besides requirements arising out of capacity additions, significant investments are

also projected in inter-regional and regional transmission conidors for strengthening

the national grid. Further, the ,officials of ICICl Bank also expect substantial

development in the renewable energy segment. With the scale-up in gas production

there is a need to connect India's various regional gas pipeline systems and as such,

significant investments in trunk pipeline networks are expected. The improved pas

availability and pipeline connectivity is also expected to drive the expansion of the

city gas network. In the transportation sector, roads and ports have s e n activity. The

momentum is expected to increase as the government has been bidding our new

projects for dcvelopmcnt of national and state highways. With the government

promoting an inclusive maritime infrastructure in the ports scctor, there has bcen an

increased private participation in projects for bcrths and terminal devcloprnent,

channel decpcning, port connectivity and modernization of equipment. The railway

sector is also expected to witness modcmization of railway stations, logistics,

development and expansion of dedicated corridors for freight. The telccom scctor is

expected to see continued growth due to dcclinc in tariffs and incrcasod focus on rural

markets. Further, the officials of IClCl Bank also cxpcct increased ptivatc sector

investments in the dcvelopmcnt of water supply, education and healthcare

infrastructure.

The long tradition of lClCl Bank project finance and its ability to offer

structured and customized solutions position them uniquely to capitalize on these

opportunities ikd cater to the financing requirements in the infrastnicture sector. It

will be their constant endeavor to add value to projects through financial structuring

to ensure bank ability. These services are backed by innovative structuring

capabilities, sectoral expertise and sound due diligence.

International Banking

The strategy of ICICI Bank in starting the international bank is to focus on

meeting the foreign currency needs of their lndian corporate clients and partnering

them in their glotial expansion, taking select trade finance exposures linked to imports

to India, and achieving thf: status of the p r e f e d nan-resident lndian community

bank in key markets. The officials of IClCI Bank also sought to build stable

wholesale &ding sources snd strong syndication capabilities to support their

corporate and investment banking business, and to expand private banking operations

for India-centric asset classes. ICICI .Bank currently lras subsidiaries in the United

Kingdom, Russia and Canada, branches in the United States, Singapore, Bahrain,

Hong Kong, Srilanka, International finance centre in Dubai and financial centre in

Qatar and representative oftices in the United Arab Emirates, China, South Afiica,

Bangladesh, Thailand, Malaysia and Indonesia. The IClCl Bank has opened first retail

branch in Singapore in 201 1. uAer having granted Qualified Full Banking (QFB)

privileges. The bank's wholly owned subsidiary, IClCl Bank UKPLC, has eleven

branches in the United Kingdom and a branch each in Belgium and Germany, lClCl

Bank Canada has nine branches. IClCl Bulk Eurasia a 1,imited Liability Company,

has one branch.

In 201 1, global economic activity picked up at differential rates with emerging

markets experiencing strong growth and dcveloped markets continuing to face a phase

of slow recovery. Howevcr, as the overall global economic environment impmved,

the pace of recovery in international trade and capital flows strtnythened

significantly. Exports from India crossed USD 200 billion and have reached an all-

time high. In this changing environment, the IClCl Bank continued to maintain

adequate capital and focused on risk 'containment and liquidity manaymmt in their

international operations. The IClCI Bank became the first Indian bank to issue! 10 year

senior bonds in the international markets. Vre IClCl Bank also focused on

establishing and growing relationships with global multinationals that are increasingly

entering and expanding in lndian markets.

The lCICI Bank has also strengthened their market position and share in

remittances during 201 1 and continued lo develop products and service offerings to

meet the requirements of the non-resident Indian community. The emphasis was on

improving account operation via remote channels in order to cater to the customers

needs. The ICICI Bank has launched I-Express, an instant mss-border money

transfer option for NRIs through its select partners in the Middle Esst. The I-Expres8

facility offers the.remitter an option of visiting any partner outlet for instant credit into

the beneficiary account maintained with IClCI Bank in India, at no extra cost. The

ICICI Bank has also launched 'Fixed Rupee' on money2india.com-a facility that

enables NRls to send the exact rupee amount remittance to India since the exchange

rate is confirmed at the time of initiating the remittance.

Inclusive and Rural Banking

In accordance with the ICICI group's vision of combining a sustainable

businas model with a social and hurnan development agenda, the bank has

undertaken several initiatives to meet the financial needs of the rural market. These

include offering credit through the brunches of ICICI Bank and dedicated field teams

and financial inclusion through business correspondents. The IClCl Bank continued

to focus on improving its product and service offerings to meet the requirements of all

participants in the rural market including farmers, traders, commission agents, small

processors and other medium agri-corporates.

In March 2010, the board of lClCl Bank has approvd a three-year financial

inclusion plan that envisaged the opening of no-frill savings accounts and expanding

its rural nvtwork over the next three yeas along with Ulc provision of credit to select

individuals in the target segment through various product lines comprising micro-

credit, kissan credit card, farm cquipm~nt loan and loan against Jewellcry. In 201 1,

the IClCl Bank has focused on building capacity to implement its financial inclusion

plan and its progress against the plan targets during the year has been satisfactory.

The officials of ICICl Bank have also focused on opening accounts far routing b e f i t

payments under various govmment schemes and received the mandate far opening

accounts of individuals under these schemes in certain states.

The bank has also identified 23 business correspondents having a network of

208 customers service points. To service these customers, the ICICI Bank has tied up

with Vodafone and Aircel for extending basic financial scrvices through the mobile

phone net work. The plan is to leverage the penetration and the distribution

infrastructure of the mobile network operaton. The oficials of IClCI Bank have also

built lending capacity in o.ver 1,000 of its branches for products targeted toward8

individual customers in the agri-value chain. The officials of lClCI Bank also

increased their product offerings in rural India by relaunching fann equipment

finance with strategic tie-ups with tractor manufacturers. Now product initiatives were

also undertaken in the year to enhance credit flow towards the micro and small

enterprises sector,

Information Technology

' The inforrnatlon technol~gy strategy of lCICl Bank focuses on incmsing

customer convenience, reducing customer complaints and increasing turn around and

resolution time frames. In the recent past the officials of ICICI Bank have enhanced

customer offerings of self-service channels, such as value a d d 4 services through

ATMs new mobile applicat~on for smart phones and a comprehensive online personal

finance tool, 'money manager'. ' f ie officials of lClCl Bank have also creatcd

facilities for custorn~rs to buy investment praducts, gold and foreign exchange

through their online channel. Pursuant to the merger of the Bank of Rajasthan, the

IClCl Bank also enabled seamless transactions for the custolnws of Bank of

Rajasthan in a short time fiarne and co~nbincd the A'I'M and branch networks and

technology infrastructure. To enable better custmner smice, the lCICl Bank branch

staff has been equipped with a comprehensive and single view of customer

relationships. The officials of ICICl Bank have also enhanced their interactive voice

response system at the call centers to support regional Indian languages.

In 201 1, the officials of IClCI Bank retained focus on information security and

deployed new systems for robust authentication and fraud detection for on-line

customers. A comprehensive network access control solution to prevent unauthorizd

entry into the IClCl Bank networks was also implemented, The officials of IClCl

Bank also continued to improve existing processes and capabilitia. The monitoring of

electronic devices at branches of ICICI Bank was also centralized lo enable betla

productivity and faster resolution times. The iCICI Bank also built a state of the art,

high density, high availability data centrc that is designed to flexibly handle different

types of equipment. It has also been designed for scalability to handle lClC1 Bank

future requirements, Simultaneously, the officials of IClCI Bank have also

implemented next generation system management tools which allow them to

proactively monitor critical data centre and system parametem.

Public Recognition

The lCICI Bank received several awards in 201 1 in India and abroad. The

following are the awards received by the ICICI Brtnk for 201 1.

)i "Most Trusted Board" among private sector banks in 2010 by Economic

, Times-brand quity most busted brands and ranked 7Ih in the list of top 50

service brands.

L Ranked 2" in the "Most Respected Compwy Awards 201 I" in financial

services sector by Business World.

h Ranked 1" in the "Banking and Finance C'atego j' and 9" overall in the "2010

best companies to work foi' by business today.

'r "Best Financial inclusion imitative" and runner up for "Bcst online bank",

"best use of business intdligence'", and "tcchnoloyy of the ycaf in the

banking technology awards 2010 by Indian banks association.

2. Special citation for the hlly electronic branch service channel at the financial

insights innovation awards held in conjunction with Asian Financial services

congress

i. "Most tech-friendly bank award" by business world.

'r Ranked 70Ih in the brandirectory league tables of the "world's most valuable

brands" by the brand finance banking 500.

'r "Excellence in remittance busincss" (world wide) "Exccllcnce in NRI

services" (world wide) and excellence in private banking business (APAC) by

World Finance.

b "Best trade finance bank and "Best foreign exchange bank (India) by

Fi'nance Asia country awards for achievement.

'r "Best trade finance bank" (India), by Asset Triple A

L "Best trade finance bank (south Asia) by global trade review.

L "Best Banking security system" by Asian ~anker.6

Table 3.7 Authorized, tssued,'Subscrfbed and Called-up Capital of ICICI Bank

over a ten.year perlod from 2001-02 to 201 0- 11 (&.in Crore)

Year

200 1-02

Table 3.7 shows the authorized, issued, subscribed and called up cbpital of

ICICI Bank over a ten year period fiom 2001-02 to 20!0-11. It is clearly visible h m

the table that the authorized capital of IClCI Bank was Rs.300 crore in 2001-02. The

2UW- 10 --

2010-1 1

authorized capital has bien raised to Rs.1900 crore in 2002-03 and has become

Authorized Capital

300'

constant till 2006-07. In 2007-08 the authorized capital has bcen increased to Rs.1775

Issued, Subscribed and Called-tlp Capital

220

Source: Annual Reports of the IClCI Bank from 2001-02 to 2010-1 1

1775 ---

1775

crore and remains constant till 2010-1 1 . The quantum of issued, subscribed and

----- 1 IS2

--- l 5 A

called-up capital has been changed fiom year to year except in 2008-09 and 2010-1 1.

The authorized capital was constant for a considerable period of time whereas the

issued, subscribed and called-up capital has been changed from year to yew except in

a few years.

Table 3.8 explains the distribution of bank branches over ten years and

Table 3.8 Distribution of ICICI h n k Branches over the rural, semi urban, urban and

metropolitan areas pver a ten year perlod from 2001-02 to 2010-1 1 (As on 31" March) (No.of Branches)

different geographical areas. It is understood from the table that the tohl number of

bank branches has been increased finm year to year o v a the entire decade. The

Year - 2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09 --

2009-1 0

increase in number of hank branches in urban and metropolitan areas ia continuous

Source: 1) Annual Reports of the lClC1 Bank from 2001-02 to 201 0-1 1

Issues. 2) RBI, Report on Trend and Progress of Banking in India 2002 to 201 1

Note: Figures ia the parentheses indicate percentages to total.

Urban 78 (21.91)

84 (91.43)

94 (22.43)

' 101 (19.46)

100 (I 7.57)

188 (26.33)

387 (30.96)

461 (32.74)

577 (33.96)

8 6 3 1.83)

65 (1 5.26)

82 (20.92)

82 (19.58)

82 (15.80

74 (I 3.01)

75 (10.50)

131 (10.48)

138 (9.80)

144 (8.48)

and steady. Whereas the increase in the number of bank branches in semi urban and

2010-1 1 260 (10.3 1) "

rural areas is not continuous. The number of bank branches in rural and semi urban

Urban

108 (30.34)

I14 (29.08)

121 (28.88)

170 (32.76) --

173 (30.40)

205 (28.72)

359 (28.72)

399 (28.34)

483 (28.43)

areas suddenly fell in 2005. In most of the years of the study period the number of

branches is more in urban and metropolitan areas. Due to a mushroom growth of

693 (27.47) 767 (30.40)

Metropolitan

105 (29.49)

112 (28.57)

122 (29.1 1 )

population in the urban and metropolitan areas, more number of branches were

Total

356 (100)

392 (100)

419 (100)

established. The data presented in table 3.8 are reflected in the fig.3.2.

166 (31.98)

222 (39.02)

246 (34.45)

373 (29%r1250 (100) --.--

410 (29.12) ----.------ -

495 (29,13) --.- ------

Table 3.9 StatelUnion Territory-Wise Distribution of ICICl Bank Branches over a ten

year period from 2001-02 to 2010-11 (As on 31'' March) (No. of Branches)

Source: 1. Statistical Tables Relating to Banks in Mia 2002 to 201 1 2. Indian Bank's ~ssociatioi

*: Data on number of offices include administrative offices.

Table 3.9 shows the statistical information relating to branch network of ICICI

Bank over the different states'and years. The state wise branch network of ICICl Bank

reveals that in some states like Dadra Nagar Havcli, Daman 8: Diu, Sikkim and

Tripura the ICICI Bank branches were established from 2007 onwards. ICICI Bank

has no branches in some of the states like Andaman and Nicobar and Laksha Dweep.

In some of the states like Arunachal ~ k d e s h and Manipur the IClCl Bank branches

were established from 2009 onwaids. The number of branches was increased from

year to year in some of the states like Maharashtra, Rajasthan, Tamil Nadu, Uttar

Pradesh, Andhra Pradesh, Delhi, Karnataka and Gujarat.

able 3.10 Details of ATMs established by lClCi Bank over a ten year period from

2001-02 to 2010-1 1 (As on 31" March) (No. of ATMs)

Table 3.10 furnishes the details relating to the establishment of ATMs on-site

Year

-- 2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009- 10

2010-1 1

and off-site over a ten year period. It is evident From the table that the number of total

ATMs from year to year has increased significantly. The number of ATMs on-site as

On-site

Source: I) Complied from the Annual Reports of the lClCl Bank. 2) RBI,.Report on Trend and Progress of Banking in India 2002 to 201 1

Note: Figures in the parentheses indicate percentages to total.

.- 532 (29.72)

569 (29.79)

703 (31.82)

1 150 (34.48)

1433 (36.92)

1863 (39.53) . 2149 (41.18)

2727 (44.68)

well as and off-site has also increased significantly. It is interesting to note that the

number of ATMs established off-site as well as on-site hw been increasing in

Off-site

--- 1258 (70.28)

1341 (70.21)

1506 (68.18)

21 85 (65.52)

2448 (63.08)

2850 (60.47)

3070 (58.82)

3377 (55.32)

absolute terms but in percentage terms the increase in the number of ATMs on-site is

Total

--- 1790 (1 00)

1910 (100)

2209 (100)

3335 (100)

3881 (100)

4713 (100)

5219 (100)

6104 (100)

significant from 2003-04.onwards whereas the increase in number of ATMs off-site

has been showing a declining'trend.

Table 3.1 1 provides statistical information pertaining to employees of different

Table 3.11 Staff Pattern in IClCl Bank over a ten year period from 2001-02 to 2010-11

(As on 31" March) (No. of Employees)

categories in ICICI Bank over a ten year period. It is evident fiom the table that the

Year

.2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009- 10

2010-1 1

number of employees working in ICICl Bank has increased from time to time. The

officers' strength has also increased fiom year to year for the same ten year period.

Source: 1. Statistical Tables Relating to Banks in India 2002 to 201 1 2. Indian Bank's Association

Note: Employees break-up of ICICl Bank is not available. Total employees of this bank have been considered as officers.

Note: Figures in the parentheses indicate percentages to total.

Officers

3591) (46.47) pp

4631 (40.12)

5454 (40.08)

7516 (41.39)

11 163 (43.98)

18921 (56.78)

40686 (100)

34596 (100)

35062 (99.45)

26799 (99.52)

For two years such as 2007-08 and 2008-09 the sub-staff particulars wcre not

specifically shown and for the years from, 2007-08 to 2010-1 1, the clerical staff

particulars are also not shown separately as per the information available with the

Clerks

3810 (49.3 1 )

6591 (57.09)

7937 (58.32)

10433 (57.45)

14010 (55.19)

14194 (42.60)

18 (0.07)

official records of the IClCI Bank. For 2009-10 and 2010-1 1 the sub-staff particulars

are separately shown. This ultimately indicates tha~ the employee strength of the bank

Sub-staff

326 (4.22)

322 (2.79)

218 (1.60)

212 (1.16)

21 1 (0.83)

206 (0.62)

194 (0.55)

112 (0.41)

has been increasing but classification by category is not evident.

Total

7726 (100)

11544 (100)

13609 (100)

18161 (100)

25384 (100)

33321 (100)

40686 (100)

34596 (100)

35256 (100)

26929 (100)

Conclusion

This chapter concludes that the Andhra Bank was established several years

back. It has introduced many products and services to win the appreciation of the

general public and to attract more number of customers. Andhra Bank has opened

several specialized branches across the globe. The bank has mobilized capital by

means of public issue. The bank b p c h e s were established over different years and

regions. The braches of Andhra Bank were also spread over different states in India,

A number of ATMs were established both on-site and off-site over a decade. The staff

pattern of the bank was sizable. The IClCl Bank was established way back in 1955

with certain specific objectives. The bank has many subsidiaries and has also

introduced several new products and services. The ICICl Bank has also introduced

certain key operations. The bank has received so many awards and rewards for the

year 201 1 . for its extraordinary services. The bank has raised funds substantially by

means of public issue. More number of bank branches were established in different

parts of the country and as well as abroad. A sizable number of ATMs were

established both on-site and off-site in the country. The staff pattern of the bank has

also been changed significantly.

References

1. www.wiki~edia.com

2. www.andhrabank.com

3. Andhra Bank Annual Report 2010-1 1

4. www.icicibank.com

5. . lClCl Bank Amtual Report 2007:08

6, ICICI Bank Annual Report 201 0- 1 1