A project report on market potential of current account for traders

“MARKET POTENTIAL OF CURRENT ACCOUNT FOR TRADERS OF RAVIWAR PETH”

EXECUTIVE SUMMARY

PROJECT TITLE:

“MARKET POTENTIAL OF CURRENT ACCOUNT FOR TRADERS OF

RAVIWAR PETH”

OBJECTIVES OF THE STUDY

The main objective of the project is to find out market potential

of current account for traders in Belgaum, which helps ICICI Bank to finds out their

potential market for current account in this area.

Further, other objectives are to understand customer perception about

current account, their exception from new banks like ICICI Bank. By understanding

customer perception and exceptions, bank can frame their strategy to make their position

more strong in the market.

METHODOLOGY OF THE STUDY

Sample Profile

For the survey, 100-sample size was to be covered as a small number of

employees made up the whole work force.

Tools for data collection

The research instrument used for the study was a structured questionnaire with a

mix of a majority of close-ended questions and a few open-ended questions. “Close

ended question” asked users to respond on a scale, “excellent”, “best”, “good”,

“average”, “poor”. The business entities did not have feeling of insecurity towards the

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questionnaires as they were not asked to write down their names and that gave them

freedom to come out with true feelings and suggestions.

Data analysis

A simple grid was prepared to collate the data provided in the completed

questionnaires. A simple coding system was designed as the questions were ranked

according to a numerical scale and the same scale was used as a code. To evaluate open-

ended questions, responses were viewed and categorized into sufficiently small set of

broad categories, which are then coded and various graphs are used to represent the

results.

Limitations

1. Study was conducted at selected areas in Belgaum city.

2. Study was based on the opinion of the customers.

3. Time and other factors.



INDEX

Sl.No Topics Page No.

1. ICICI Group 01

2. History of ICICI 02

3. Overview of the Bank 05

4. Board of Members 07

5. Board of Committees 09

6. Risk Management 12

7. ICICI Banking 15

8. Current Account 22

9. Roaming Current Account 27

10.Theoretical Background 32

11.Market Research 35

12.Research Methodology 36

13.Research Objectives 37

14.Sources of Data 38

15.Measurement Technique 39

16.Findings of Survey 40

17.SWOT Analysis 43

18.Problems & Recommendations 45

19.Summary of the Project 46

20.Annexure 47

Graphical Analysis 51

Data Analysis 63

Bibliography 69



ICICI GROUP



HISTORY OF ICICI

1955: The industrial Credit and Investment Corporation of India Limited (ICICI)

incorporated at the initiative of the World Bank, the Government of India and

representatives of the Indian Industry, with the objective of creating a development

financial institution for providing medium-term and long-term project financing to Indian

businesses. Mr. A. Ramaswami Mudaliar elected as the first Chairman of ICICI

Limited.

ICICI emerges as the major source of foreign currency loans to Indian industry.

Besides funding from the World Bank and other multi-lateral agencies, ICICI also among

the first Indian companies to raise funds from international markets.

1956: ICICI declared its first Dividend at 3.5%.

1958: Mr. Mehta was appointed as the second Chairman of ICICI Ltd.

1960: ICICI building at 163, Back Bay Reclamation was inaugurated.

1961: The first West German loan of DM 5 million from Kredianstalt was obtained by

ICICI.

1967: ICICI made its first debenture issue for Rs.6 crore, which was oversubscribed.

1969: First two regional offices in Calcutta and Madras were opened.

1972: Second entity in India to set-up merchant banking services.

Mr. H .T. Parekh appointed as the third chairman of ICICI.

1977: ICICI sponsors the formation of Housing Development Finance Corporation.



Managed its first equity public issue.

1978: Mr. James Raj was appointed ass the fifth Chairman of ICICI.

1982: Becomes the first ever Indian borrower to raise European currency Units.

ICICI commences leasing business.

1984: Mr. S.Nadkarni appointed as the sixth Chairman of ICICI.

1985: Mr.N.Vaghul appointed as the seventh Chairman and Managing Director of

ICICI.

1986: ICICI first Indian Institution to receive ADB Loans. First public issue by an Indian

entity in the Swiss Capital Markets.

ICICI along with UTI sets up Credit Rating Services of India Limited, (CRISIL)

India’s first professional credit rating agency.

ICICI promotes Shipping Credit and Investment Company of India Limited.

(SCICI)

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

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

1987: ICICI signed a loan agreement for Sterling Pound 10 million with Commonwealth

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

1988: ICICI promotes TDICI – India’s first venture capital company.

1993: ICICI sets up ICICI Securities and Finance Company Limited in joint venture with

Mr. J. P. Morgan.

ICICI sets up ICICI Asset Management Company.



1994: ICICI sets up ICICI Bank.

1996: ICICI becomes the first company in the Indian financial sector to raise GDR.

ICICI announces merger with SCICI.

Mr. K.V. kamath was appointed as the Managing Director and CEO of ICICI Ltd.

1997: ICICI was the first intermediary to move away from single prime rate to three-tier

prime rates structure and introduced yield-curve based pricing.

1998: Introduced the new logo symbolizing a common corporate identity for the ICICI

Group.

1999: ICICI launches retail finance- car loans, house loans, and loans for consumer

durables.

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

American Depository Shares.

2000: ICICI Bank becomes the first commercial bank from India to list its stock on

NYSE.

ICICI Bank announces merger with Bank of Madura.

2001: The Boards of ICICI Ltd and ICICI Bank approved the merger of ICICI with ICICI

Bank.

2002: Moody’s assign higher than sovereign rating to ICICI.

Merger of ICICI Ltd, ICICI Capital Services Ltd and ICICI Personal Financial

Services Ltd with ICICI Bank.



OVERVIEW OF THE BANK

ICICI Bank is India’s second largest bank with total assets of Rs 1, 12,024 crores and a

network of more than 540 branches and offices and more than 1800 ATMs. ICICI Bank

offers a wide range of banking products and financial services to corporate and retail

customers through a variety of delivery channels and through its specialized subsidiaries

and affiliates in the areas of investment banking, life and non-life insurance, venture

capital, asset management and information technology. ICICI Bank’s equity shares are

listed in India on stock exchanges at Chennai, Delhi, Kolkata, and Vadodara Stock

exchange, Mumbai and the National Stock exchange of India Limited and its American

Depository Receipts (ADR’s) are listed on the (NYSE).

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

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

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

offering in the form of ADR’s listed on the NYSE in fiscal 2000, ICICI Bank’s

acquisition of Bank of Madura limited an all stock amalgamation in fiscal 2001 and fiscal

2002. ICICI was formed in 1995 at the initiative of the World Bank, the Government of

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

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

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

development financial institution offering project finance to a diversified financial

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

a number of subsidiaries and affiliates like ICICI Bank. In 1999, ICICI become the Indian

company and the first Bank or financial institution form non-Japan Asia to be listed in the

NYSE.



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

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

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

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

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

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

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

income and the ability to participate in the payments system and provide transaction-

banking services. The merger enhance value for ICICI Bank shareholders through a large

capital base and scale of operations, seamless access to ICICI’s strong corporate

relationships built up over five decades, entry into new business segments, higher market

share on various business segments, particularly fee-based segments, and access to the

vast talent pool of ICICI and its subsidiaries. In October 2001, the Boards of Directors of

ICICI and ICICI Bank approved the merger of ICICI and two of its wholly owned retail

financial subsidiaries, ICICI Personal Finance Services Ltd and ICICI Capital services

Ltd, with ICICI Bank. Shareholders of ICICI and ICICIBSNK approved the merger in

January 2002. Consequent to merger, the ICICI group’s financing and banking

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



BOARD OF MEMBERS

Mr. N. Vaghul, Chairman

Mr. Uday M. Chitale

Mr.P.C.Ghosh

Dr.Satish C. Jha

Mr.S.B. Mathur

Mr.L.N.Mittal

Mr.Anupam Puri

Mr.Vinod Rai

Mr. Somesh R. Sathe

Mr.P.M.Sinha

Mr.M.K.Sharma

Prof. Marti G. Subrahmanyam

Mr.V.Prem Watsa

Mr.K.V.Kamath, Managing Director and Chief Executive Officer



Mrs.Lalita D. Gupte, Joint Management Director

Mrs. Kalpana Morporia, Deputy Management Director

Ms.Chanda Kochhar, Executive Director

Dr.Nachiket mor, Executive Director



BOARD OF COMMITTEES

Agricultural & Small Enterprises Business Committee

Mr. N. Vaghul

Dr.Satish C.Jha

Mr.Somesh R. Sathe

Mr. P.M.Sihna

Mr. M.K.Sharma

Audit Committee

Mr. Uday M. Chitale

Mr. Somesh R. Sathe

Mr. M.K.Sharma

Business Strategy Committee

Mr. N.Vaghul

Mr.Anupam Puri



Mr.M.K.sharma

Mr.P.M.Sinha

Mr.K.V.Kamath

Risk Committee

Mr.N.Vaghul

Prof. Marti G.Subrahmanyam

Mr.Uday M.Chitale

Mr.V.Prem Watsa

Mr.K.V.Kamath

Board Governance & Remuneration Committee

Mr.N.Vagul

Mr.P.M.Sinha

Mr.Anupam Puri

Credit Committee

Mr.N.Vaghul

Mr.Somesh R.Sathe

Dr.Satish C. Jha



Mr.K.V.Kamath

Share Transfer & Shareholder’s/Investor’s Grievance Committee

Mr.Uday M.Chitale

Mr.Somesh R.Sathe

Ms.Kalpana Morporia

Ms.Chanda D. Kochhar

Committee of Directors

Mr.K.V.Kamath

Ms.Lalita D.Gupte

Ms.kalpana Morporia


Dr. Nachiket Mor

Asset-Liability Management Committee

Ms.Lalita D.Gupte



Ms.Kalpana Morporia


RISK MANAGEMENT

Risk is an a inherent part of ICICI bank business and effective Risk Compliance and

Audit Group is critical to achieving financial soundness and profitability . ICICI bank has

identified Risk compliance and Audit Group as one of the core competencies for the next

millennium. The Risk Compliance and audit Group (RC and AG) at ICICI bank

benchmarks itself to international best practices so as to optimize capital utilization and

maximize shareholder value. With well defined policies and procedure in place, ICICI

bank identifies, assesses, monitors and manages principal risks, such as

CREDIT RISK (THE POSSIBILITY OF LOSS DUE TO CHANGES IN THE

QUALITY OF COUNTER PARTIES)

CREDIT RISK MANGEMENT:

Credit risks, the most significant risk is faced by ICICI bank, is managed by Credit Risk

Compliance and Audit Department (CRC and AD), which evaluates risks at transaction

level as well as in the portfolio context. The industry analysts of the department monitor

all major sectors and evolve sectoral outlook, which is an important input to the portfolio

planning process. The department has done detailed studies on default patterns of loans

and prediction of defaults in the Indian context. Risk-based pricing of loans has been

introduced.

MARKET RISK (the possibility of loss due to changes in the market prices and rates

securities and there levels of volatility)



Market Risk Compliance and Audit Group:

ICICI bank is exposed to all kind of market risks, viz,

Interest rate risk (risk due changes in the interest rates)

Exchange rate risk (risk due to changes in the exchange rates)

Equity risks (risk due to changes in equity prices).

Liquidity risk (risk due to deterioration in the market liquidity for tradable

instruments)

The Market Risk Compliance and Audit department evaluates tests and approves and

market risk methodologies developed by Treasury. It also participates in the new product

approval process on a firm-wide basis and evaluates all new products from a market risk

perceptive.

OPERATION RISK (The potential for loss arising from break downs in policies and

controls, human errors contracts, systems and facilities)

Operational Risk Management:

The ICICI bank, like all large banks, is exposed to many types of operational risks. These

includes potential losses costs by events such as break down in information,

communication and transaction processing and settlement systems/procedures.

The audit department, and integral part of risk compliance and audit group, focuses on

the operational risks within the organization. In recent times, there has been a shift in the

audit focus from the transactions to controls. Some examples of this paradigm shift are:

Adherences to internal policies, procedures and documented processes

Risk based audit plan.

Widening of treasury operations audit coverage

Use of computer assisted audit techniques (CAATs).

Information system audit Plan to develop/buy software to capture the work flow of the

audit department. The audit Department conceptualizes and put into operation a risk



based audit plan during the year 1998-99. The risk based audit plan envisages allocation

of audit resources in accordance with the risk constituents of ICICI bank’s business.

The ability to implement analytical and statistical models is the true test of a risk

methodology. In addition to three departments within risks compliance and audit group

handling the above risks, an analytics unit develops quantitative techniques and models

for risk measurements.



ICICI BANKING

1) SAVING ACCOUNT

Features:

The ICICI bank N cash debit card is debit come ATM card providing you with

the convenience of acceptances at merchant establishments and cash

Withdrawals at ATM’s

Auto invest account

Internet banking is offered free of costs.

Any where banking: This facility entitles the account holder to withdraw or

deposit cash up to limit of RS 50000 across all ICICI bank branches.

You can give us various types of standing instruction like transferring to fix

deposit accounts at regular intervals.

An average quarterly balance of Rs 5000 only

Nomination facility is available.

Interest is payable half yearly.

2) FIXED DEPOSIT:

Wouldn’t you like a fixed deposit that allows you to deposit your money for just as long

as you wish? Our fixed deposit allows just that-deposits can be opened for a periods

ranging from 15 days to 10 years.



Other feature includes:

Choice of two investments plans:

TRADITIONAL

Interest payable monthly, quarterly or half yearly as per your

Convenience Maturity period ranges from 15 days to 10 years.

REINVESTMENT:

Interest is compounded quarterly and reinvested with a principal amount.

Maturity period ranges from 6 months to 7 years.

MINIMUM BALANCE:

You can avail of ICICI bank fixed deposits for a minimum deposit of Rs

10000 and there after in multiples of just Rs 1000.

3) EASY FIXED DEPOSIT

Easy fixed deposit is an ICICI bank fixed deposit schemes having benefits of debit cum

ATM card. The depositors shall be provided with a debit card for transacting in fixed

deposit. Transactions which are allowed are:

Part withdrawal of fixed deposit

Full withdrawal of fixed deposit

Generation of mini statements

The card will issue in the name of primary depositor. No separate card will be issued to

joint applicants. Deposits can be made in the two modes.

1. Easy withdrawals.

2. Easy loan.

A customer has to offer one of these at the time opening the account. Tenure of the

deposit varies between 1 to 10 years. All deposits under this deposit schemes will be

commutative (reinvestment) in nature. Minimum deposit amount under the deposit



schemes is Rs 45000 and additionally deposits can be made in multiples of Rs

5000.Nomination details are as in the case of normal fixed deposits.

Easy withdrawals

Under this option fixed deposit shall be linked to debit card directly.

The debit card can be used to withdraw money from the ATM, by breaking the FD, as

and when required. If the deposits are prematurely withdrawn, The interest rate for the

period for which deposit was with the ICICI bank prevailing on the date of deposit made,

shall be payable.

Easy Loan

The depositors shall be provided with an overdraft facility against the easy FD and can

draw up to 75% of the easy FD value. The interest rate on over draft will be 2 % higher

than the rate on the FD.

The depositors shall be required to execute all loan facility documentation as specified

that ICICI bank for these purposes. Check book will be issued to the deposit holders.

4) RECURRING DEPOSIT

ICICI bank’s recurring deposits are the ideal way to invest small amount of money every

month and end up with a large saving on maturity.

Features:

Encourages your savings without any stress on the finances.

High rate of interest (identical to the fixed deposit rates)

Non applicability of tax deduction at sources (TDS)

Minimum balance: The minimum balance of deposit is Rs.1000 per month and

Thereafter, in multiples of Rs 100

Multiples of 3 months



5) PRIVATE BANKING

Comprehensive range of products and services

Saving account, fixed deposits, Recurring deposits, Quantum optima, Current accounts,

Resident Foreign currency (Domestic) accounts etc

Asset products-Home loans, Car and personal loans, Loans against securities etc

Investment-Government of India bonds, Mutual funds, Capital gain bond etc.

Insurance:

Web trade and demat accounts

Gold coins and bureau de change

International Debit and credit cards

And many more……………

Exclusively and convenience

Dedicated officers

Separate interaction area in the branch

Anywhere banking facility

Exclusive phone banking services

Competitive pricing

Reduced rates for products services

Several complementary offers

Value-linked benefits

6) ROAMING CURRENT ACCOUNT:

Only roaming current account from ICICI bank travels the distance with your business.

With advanced technological features such as NCC & LCC, your banking needs well

taken care of. You can access your account for 540 network banks across the country. So



while you take care of your business, let the ICICI bank’s current account simplify the

banking for you.

7) YOUNG STARS:

Features:

Young stars is a banking service for the children, aged 1 to 18 years, brought

You buy ICICI bank to help the parents to meet the present and future aspiration

that they hold for their child It offers various savings and

Investment option to the parent along with teaching the child to mange his/ her

Personal finance in a more responsible and independent manner

To make the experience a pleasure bank offer:

1. Option of saving bank account, fixed deposit account or recurring deposit

account.

2. Minimum balance at Rs 500 per quarter for saving bank.

3. A special recurring deposit account with the additional feature as below

i) The parent would put forward the decide amount to be earned at the end of

the tenure.

ii) Based on the prevailing rate of interest, bank staff would than bank

calculate the installments to be deposited now till maturity.

Other RD type savings options that are possible for the parent include investing

sums periodically and than receiving sums back from the bank periodically. The

various RD options would be available through the “Annuity to Annuity” product

already developed by the bank.

4. Free personalized check book.



5. Free domestic debit card * For the child above the age of 10 years with the

features as below:

a) Daily withdrawal limit of Rs.1000

b) Daily spend limit of Rs 1000

c) Special privileges across all alliance partners outlets

6. Facility to invest in GOI Relief bonds and Mutual bonds.

7. Free internet banking.

a) A separate user IDs and password for both parents and children’s.

b) Special shopping powers up to Rs 1000 for the children above 10 years of

age.

c) Access to special zones and links to related websites for making internet

banking a memorial experience.

8. Facility to transfer funds from parent account to kind account to enable parents to

inculcate savings habit amongst children.

9. Facility of setting up a sweep account from the young stars accounts to the RD to

enable the parents to let their child earn more.

10. Alliances with various partners to meet the child’s needs in varied interest areas

such as clothing, computers, books, music, toys etc.

*Available for children above the age of 10 years only.

8) BANK @ CAMPUS:

Benefits:



Technology-enabled services, through automated channels, without physical branch

access

Benefits to the student

Free internet- banking

Free phone banking (in select cities)

ICICI N Cash Debit card.

Other benefits

Benefits to parent

You can transfer funds from your ICICI bank account to your son’s/daughter’s account

free of charge, so that his /her college fees, tuition, living expenses etc. are taken care of.

If you have an ICICI bank Credit card, you can give your son/daughter a supplementary

card and even specify a pre-determined spending limit.

9) SALARY ACCOUNT:

ICICI bank Salary Account is a benefit-rich payroll account for Employers and

Employees.

As the organization, you can opt for our Salary Account to enable easy disbursement of

salaries and enjoy numerous other benefits too.

With ICICI bank Salary account your employees will enjoy the convenience of having

the largest network of ATMs at their command, free 24 hour banking, and free internet

banking.

10) WOMEN’S ACCOUNT:

The features of the account have been specially been designed keeping in minds a

woman’s financial requirements. These include:

a) Recurring deposits.

b) Financial planning of children.



c) Family shield insurance.



CURRENT ACCOUNT

Every business requires efficient banking facilities to support its business activities.

ICICI bank offers premium quality services, unfolding a wide array of class products.

With our technology leadership and services, bank is able to meet some of the most

challenging financial needs of clients. Some of our general banking products like

Current account, Roaming current account ,made 2 order current account, Escrow

account services, fixed deposit and salary account have a host features to suit the

needs of different client segments

.

WHAT IS CURRENT ACCOUNT?

A running account supporting unlimited withdrawals and deposits

A current account is meant for convenience and not save money.

WHO NEEDS ACURRENT ACCOUNT?

Businessmen, Joint stock companies, Institutions, Public corporations, etc Any

business that has numerous banking transactions needs current account.

HOW TO OPEN A CURRENT ACCOUNT?

Requirements of current account:

Completely duly signed AOF

AOA AND MOA

A form32 for change in director

Certificate of incorporation

Certificate of commencement

Board resolution in bank format

Photograph of each authorized signatory

List of directors with residential address

Proof of PAN or completed Form 60



Declaration if no credit from other banks

NOC from other bank if the customer enjoys credit from other bank.

Benefits of current account

Unlimited withdrawal and Deposit

Unlimited Cheque book

Demand Drafts and pay orders

Funds transfer (Local or any anywhere)

Collection of cheques/Drafts

Statements, advices, daily statement by e-mail

Call centre

Internet Banking

Added features of current account

Multi city cheque payment facility at over 540 branches

Anywhere Banking facility

Doorstep Banking pick up and delivery of cash/ cheque

Mobile Banking

What is Made 2 Order current account?

Made 2 order current account, unlike the normal current account, which is based on the

quarterly balance, allows to have customized current account based on the business

requirement.

The made2 order current account is totally flexible and can adapted to changing business

requirement, without having the requirement to current accounts have specific



requirement of Quarterly Average Balance(QAB) maintenance and in turn offer various

facilities free of cost to the customer based on the QAB.

A personalized schedule of changes is derived for the each customer based on

Service Required

QAB as to be maintained in the account

Float expected in the account

The m2o customers based on the services required maintain the required

QAB or pay scaleable volume driven fees for the services utilized.

Some of the other facilities offered under made2 order current account are as mentioned

below:

Anywhere Banking Facility:-

With an unparalleled set of networked branches across India, ICICI Bank

offers you ‘Anywhere Banking’ in the trust sense of the term. Your roaming current

account in one centre can be operated from any other designated branch across any other

centre.

Therefore, a cheque deposited in your account in any other centre will be credited to

your account much faster. Likewise, you can deposit or withdraw cash from designated

ICICI Bank branches up to a prescribed limit. You can also transfer funds across

accounts in ICICI Banks.

Phone Banking Facility:-

With this facility you can carry out your banking transactions over the phone. You can

make Balance Enquiries, Request for a Cheque Book, Request For stop payment, make

an Fixed Deposit, Request for a DD and do much more.



Facility in selected centres.

Internet Banking Facility:-

ICICI Bank’s Internet Banking Facility allows you to access your account from

anywhere, anytime. You can.

Cheque Account Balances

Transfer Funds

Request for Cheque Books and DD’s

Pay utility bills online

Request for Fixed Deposit*… and much more

You can also get free # burglary / personal accident insurance by registering yourself

Corporate Internet Banking.

# Applicable only from Premium accounts.

* Facility in selected centres for select customers.

Debit ATM Card:-

This facility is available for sole proprietorships and partnership concerns. You can use

the debit/ATM card for the following transactions:

Cash Withdrawal

Cash Deposit

Balance Enquiry



Cheque book request

Mini account statement

More Useful Facilities:-

Free monthly account statement

Free standing instructions

You can also opt for power pay to make your salary payments to employees absolutely

hassle free

Free daily statement on e-mail

*conditions apply



ROAMING CURRENT ACCOUNT

Only roaming current account from ICICI Bank travels the distance with your business.

With advanced technological features such as Multi City Cheque and zero DD

commission, your banking needs is taken care of. You can access your accounts at over

540 branches across the country.

So while you take care of your business, let ICICI Bank’s roaming current account

simplify banking for you. Refer terms and conditions, schedule of charges

Product Features:-

Chose your account

ICICI Bank offers you a suite of current account products that meet all your banking

requirements. Choose a current account that fits your budget for quarterly average

balance (QAB).

Account Quarterly Average Balance Requirement

Standard Rs. 10,000

Classic Rs. 25,000

Premium Rs. 50,000

Gold Rs. 1, 00,000



Gold Plus Rs. 3, 00,000

Platinum Rs. 5, 00,000

Multi City Cheque Facility:-

With this facility, all cheques issued by you will be payable at par at various ICICI Bank

branches across the country. This unique facility, which gives you the power to issue

cheques that are treated as local cheques at over 100 centres across India.

Anywhere Banking Facility:-

With an unparalleled set of networked branches across India, ICICI Bank offers

You ‘Anywhere Banking’ in the trust sense of the term. Your roaming current account in

one centre can be operated from any other designated branch across any other centre.

Therefore, a cheque deposited in your account in any other centre will be credited to your

account much faster. Likewise, you can deposit or withdraw cash from designated ICICI

Bank branches up to a prescribed limit. You can also transfer funds across accounts in

ICICI Banks.

Upcountry Cheque Collection:-

Next time your buyer sends a cheque payable at a remote location, do not worry. ICICI

Bank’s reach coupled with its correspondent bank network will ensure that the cheque is

credited to your account extra fast.

Pay Orders and Demand Drafts:-



With the ICICI Bank Roaming Current Account, you can draw pay orders in more than

153 centres and Demand Drafts in more than 540 centres.

Phone Banking Facility:-

With this facility you can carry out your banking transactions over the phone. You can

make Balance Enquiries, Request for a Cheque Book and Request for Stop Payment,

make an Fixed Deposit, Request for a DD and do much more.

Facility in selected Centres.

Doorstep Banking Facility:-

Now cash pickup/delivery and cheque pickup is available at your doorstep. To avail this

facility*, please contact nearest ICICI Bank.

Facility in selected centres for select customers.

Internet Banking Facility:-

ICICI Bank’s Internet Banking Facility allows you to access your account from

anywhere, anytime. You can.

Cheque Account Balances



Transfer Funds

Request for Cheque Books and DD’s

Pay utility bills online

Request for Fixed Deposit*… and much more

You can also get free # burglary / personal accident insurance by registering yourself

Corporate Internet Banking.

# Applicable only from Premium accounts.

* Facility in selected centres for selected customers.

Debit ATM Card:-

This facility is available for sole proprietorships and partnership concerns. You can use

the debit/ATM card for the following transactions:

Cash Withdrawal

Cash Deposit

Balance Enquiry

Cheque book request

Mini account statement

Mobile Banking:-

Your account balance will be communicated to via SMS everyday, what’s more, in case

account has insufficient balance when a cheque hits, we will send you SMS alert

immediately.



More Useful Facilities:-

Free monthly account statement

Free standing instructions

You can also opt for power pay to make your salary payments to employees absolutely

hassle free

Free daily statement on e-mail

*conditions apply



THEORETICAL BACKGROUND

Marketing:

Marketing is a social process by which individuals and groups obtain what they need and

want through creating, offering, and freely exchanging products and services of value

with others.

Marketing management:

Marketing management is the process of planning and executing the conception, pricing,

promotion and distribution of ideas, goods and services to create exchanges that satisfy

Individual and organizational goals.

Marketing management takes place when at least one party to a potential exchange thinks

about means of an achieving desired response from the parties. We see marketing

management as the art and science of choosing target markets and getting, keeping and

growing customers through creating, delivering, and communicating superior customer

value.

Demand Forecasting:

One of the company’s major reasons for undertaking a marketing research is to identify

market opportunities. Once research is complete, the company must carefully evaluate

opportunity before choosing its target market specifically, the company needs to measure

and forecast size, growth and profit of each opportunity. Sales forecasts are used b

finance to raise the needed cash for investment and operation; by the manufacturing

department to establish capacity and output levels; by purchasing to acquire the right

amount of supplies; and by human resource to hire and needed number of workers.

Marketing is responsible for preparing the sales forecasts. If its forecast is far-off the

mark, the company either will be saddled with excess capacity and inventory or will lose

money because of inadequate inventories.



Measures of market demand:

As part of their ongoing, companies prepare many estimates of market size.

Demand can be measured for six different products levels, five different space levels, and

five different times’ levels.

Each demand measure serves a specific purpose. A company might forecast short-run

demand for a particular product for the purpose of ordering raw-materials, planning

production and borrowing cash.

Potential Market:

The potential market is a set of consumers who profess a sufficient level of interest in a

demand market offer.

Consumer interest is not enough to define a market, however potential consumers must

have income for the product, and they must have access to the product offer. If the

product is not distributed in certain areas, potential consumers in those areas are not

available to marketers.

Market potential:

The market forecast shows expected market demand, not maximum market demand. For

the later, we have to visualize the level of market demand for a very high level of

industry marketing expenditure, where further increases in marketing effort would have

little in stimulating further demand. Market potential is the limit approached by market

demand as industry marketing expenditures approach infinity, for a given environment

Total Market Potential:

Total market potential is the maximum amount of sales that might be valuable to all firms

in an industry during a given period, under given level of industry marketing effort and



given environmental conditions. The common way to estimate total Market potential is as

follows.

Q=NOP

Where,

Q=total market potential.

N=number of buyers in the specific product/market under given assumptions.

O=quantity purchased by an average buyer.

P=price of an average unit



MARKET RESEARCH:

The essence of marketing is that a firm will make what it can sell, rather than sell what it

can make. Marketing therefore requires an assessment of customer needs through market

research and the orientation of all the firms’ activities towards satisfaction of those units.

The key technique of marketing is that of market research. Information about firm’s

market and its customer is collected and analyzed in order to determine who buys the

firm’s products, why, when and under what circumstances. On the basis of this analysis

the marketing policy is evolved. Marketing research is not substitute for management

decision; it is an aid to making better decisions by providing additional information

relative to specific marketing problems. Marketing research is a formalized means of

obtaining information to be used in making marketing decisions. The official American

Marketing Association’s definitions of marketing research reflects the themes but in

greater detail. Marketing research is a function, which links the customer and public to

the marketer through information, which is used to identify and evaluate marketing

actions, monitor marketing performance and improve understanding of marketing as a

process. Marketing research specifies the information required to address these issues,

design the method for data collection. Manages and implements the data collection

method, analyses the result and communicates the finding and there implications

Customer value:

The key to generating high customer loyalty value. Customer delivered value is the

difference between total customer values and total customer cost. The total customer

value is the bundle of benefits customer coat is the bundle of costs customer expect to

incur in evaluating, obtaining, using, and disposing of the product or services.



RESEARCH METHODOLOGY

Marketing research

It is a systematic design, collection and analysis and reporting of data and findings

relevant to specific marketing situation facing company.

Need for the research

The need for the research is to find sales potential for current account, as current account

is mainly maintained for the business sector. They are important source of business for

any bank. So, it is important to find out sales potential level for current account. Further

this survey helps to know bank, what type of services are expected, traders perception

and which helps ICICI Bank to find out their sales potential in this sales.



RESEARCH OBJECTIVES

The main objective of the project is to find out market potential of current account for

traders in Belgaum, which helps ICICI Bank to find out their sales potential for current

account in this area.

Further the main objectives are to understand customer perception about current account,

their exception from new banks like ICICI Bank. By understanding customer perception

and exceptions, bank can frame their strategy to make their position strong in the market.

Research Design

After defining the research problem and setting out of objectives a plan specifying the

sources of selection of data analysis of needed information formulated.



SOURCES OF DATA

Primary Data

Primary data was collected by conducting a survey of the firms, with the help of

questionnaire and by interviewing proprietors and partners of different firms about their

current account.

Secondary Data

Internal secondary data:

Mr.Naveen Dodamani of ICICI Bank Belgaum helped in setting out

objectives for my project and he provided me all the relevant information

about company and its products and services.

External secondary data:

External secondary data relating to the company is collected from the

following

Websites

www.icicibank.com

www.icicidirect.com

www.indiainfoline.com


http://www.indiainfoline.com/

http://www.icicidirect.com/

http://www.icicibank.com/


www.google.co.in

MEASUREMENT TECHNIQUE

Sampling Method : Convenience sampling

Sample size : 100, including Traders, dealers and distributors

Sampling Technique : Personal interview.

Sampling Unit : Sole proprietors, partnership firms and Pvt. Ltd Co.

Area : Raviwarpeth

Duration : 15th April to 15th June.


http://www.google.co.in/


FINDINGS OF THE SURVEY

From the survey conducted following things were found:

1. 60% of the respondents are from sole proprietorship.

38% of the respondents are from partnership.

2% of the respondents are from Private Limited Company.

0% of the respondents are from Public Limited Company.

0% of the respondents are from H.U.F.

0% of the respondents are considered from any other sector.

2. 0% of the firms are into Manufacturing Business.

76% of the firms are into Trading Business, which include Wholesaling and

Retailing.

16% of the firms are into Dealers or Distributors.

8% of the firms are into Automobiles.

0% of the firms are into Textiles.

3. 10% of the firms have their annual Turnover between 10-25 Lakhs.

28% of the firms have their annual turnover between 25-50 Lakhs.

42% of the firms have their annual turnover between 50 Lakhs- 1 Crore.

20% of the firms have their annual turnover between 1 Crore-10 Crores.

0% of the firms have their annual turnover more than 10 Crores.

4. 61% of the firms enjoy Credit Facility.

39% of the firms do not enjoy Credit Facility.



5. 90 % of the Firms enjoy cash Credit Facility.

7% of the Firms enjoy Over Draft Facility.

0% of the Firms enjoy Bill Discounting Facility.

3% of the Firms enjoy Bill Collection Facility.

0% of the Firms enjoy Letter Of Credit Facility.

0% of the Firms enjoy Other Facilities.

6. 51% of the Firms do their business within the city of Belgaum.

36% of the Firms do their business within the state of Karnataka.

13% of the Firms carry out their business all over India.

0% of the Firms carry out their business outside India.

20% of the Firms have their Current Account in ICICI Bank.

80% of the Firms have their Current Account in other Banks.

7. 20% of the Firms have their Current Account in ICICI Bank.

24% of the Firms have their Current Account in Union Bank Of India.

18% of the Firms have their Current Account in Unit Trust Of India.

38% of the Firms have their Current Account in Other Banks.

8. 5 of the Firms quoted that the Hospitality provided is Excellent, but major 10 of the

firms quoted that Hospitality is Best, the other 4 Firms quoted that the Hospitality

provided is good,1of the Firm feels that the Hospitality provided is Average and no

Firm quoted that Hospitality is Poor.

9. 0 firms quoted that the Communication Skill provided is Excellent, 4 Firms quoted

that Communication Skill provided is Best, but major 9 Firms quoted that

Communication Skill provided is Good, 5 Firms quoted that Communication Skill

provided is Average and minor 2 Firms quoted that Communication Skill provided

is Poor.



10. Major 8 Firms quoted that Working Speed provided is Excellent, 6 Firms quoted that

Working Speed provided is Best, 3 Firms quoted that Working Speed provided is

Good and 3 Firms quoted that Working Speed provided is Poor.

11. 1 Firm quoted that Attending Query is Excellent, 7 Firms quoted that Attending

Query is Best, 8 Firms Quoted that Attending Query is Good, 3 Firms quoted that

Attending Query provided is Average and 1 Firm quoted Attending Query is Poor.



SWOT ANALYSIS

STRENGTHS

ICICI Bank charges are very low rate of commission for DD’s on Standard

A/C’s (Rs.10,000) and Classic A/C’s (Rs.25,000).For Premium (Rs.50,000),

Gold (Rs.1,00,000), Gold Plus (Rs.3,00,000) and Platinum (Rs.5,00,000)

accounts commission on DD’s are not charged till a specified limit.

ICICI offers 12 hour banking to its customer that is 8 A.M to 8 P.M.

ICICI Bank offers ATM facility where the customers can withdraw and

deposit the money 24 hours a day and 365 days a year.

ICICI Bank has recently started to provide the cash credit facility to the

manufacturers with the minimum amount of Rs.1crore.Another thing to be

noted is that the ICICI Bank is preparing to start to provide the Over Draft

facility to the Traders with the amount ranging from Rs.10 Lakhs to Rs.15

Lakhs.

WEAKNESS

Cash deposits are charged on Denominations.

Very few number of branches in cities like Belgaum & Hubli.

ICICI Bank has very few branches in Rural & Remote locations.

Even though the ICICI Bank has started providing cash credit facility to the

manufacturers, the lending amount is comparatively very high which cannot

be accommodated by small manufacturers.



OPPORTUNITIES

Gradually Customer’s mentality is changing, i.e. they prefer Modern banking

to Traditional system of banking.

ICICI Bank was early in the Belgaum market so this is an opportunity to grab

more market than UTI Bank and HDFC Bank.

THREATS

ICICI Bank’s competitors like UTI, HDFC & Corporation Banks are

expanding their networks.

UTI and Corporation Bank have already established ATM’s.

SBI Bank is also providing all the facilities, which are provided by ICICI

Bank.

UTI Bank is not charging Denominations on Cash Deposits.



PROBLEMS AND RECOMMENDATIONS

Denominations wise charges for each cash deposits

ICICI Bank is no doubt providing better services as compared to other banks

in this area, but it is charging denomination wise charges for this cash deposits from its

customers. These charges may be borne by customers in metro cities like Mumbai and

Bangalore, where most of the companies have a huge turnover and most of the transactions

involve Cheques and DD’s but these charges are not suitable for the customers in cities like

Belgaum. This is one of the most important reasons given by the firm’s for not opening

their account with ICICI Bank. So ICICI Bank should at least remove these denominations

charges for customers at cities like Belgaum.

Location of the Bank

ICICI Bank in nearly two years has achieved remarkable progress but it has

only branch in Belgaum city. So if it wants to capture potential areas in Belgaum like the

market yard it has to open a few more branches in Belgaum. Many traders in market yard

are not interested in ICICI Bank as it is not near to them. Furthermore, the traders find it

difficult to carry cash to a long distance.

Cash Credit facility

Cash credit is very important form of loan facility for any firm to carry out

its business. It is one of the important factors which determine a firm to bank with a

particular bank. Even though ICICI Bank has started giving cash credit facility to the

manufacturing of high limits, but the small manufacturers require low limits of cash

credit facilities at a competitive rate.



SUMMARY

Banking is one of the most important parts of any country’s economy.

ICICI Bank, which is a private bank has became the second largest bank in

India and is providing various type of services to industries and business out of which

Roaming Current Account is one. It is also one of the most important source of income for

the bank. So this service is conducted to find out potential of current account in Belgaum.

On the basis of this survey bank can find out who is their potential customer is and what

new strategies are required to implement and attract more customers.

From this survey we conclude that if ICICI Bank wants to improve

its competitive position it should abolish or reduce the denomination charges on cash

deposit, provide cash credit facilities to the small manufacturers at the reasonable limits,

should start the Over Draft facility to the traders as soon as possible and also open few

more branches near the potential markets of Belgaum.



ANNEXURE



QUESTIONNAIRE

1. Name of the organization _______________________________________

2. Address _____________________________ _____________________________

3. Contact person’s Designation ________________________________

4. Contact Number ____________________

5. Type of the Organization

Sole Proprietor

Partnership Firm

Pvt. Ltd. Co.

Public Ltd Co.

H.U.F.

Others____________________________

6. Nature of Organization

Manufacturing

Traders

Dealers & Distributors

Automobiles

Textile

7. Annual Turn Over

10-25 lakhs

25-50 lakhs

50 lakhs – 1 crore

1-10 crore

More than 10 crore



8. Do you have any credit facility?

Yes No

If yes, which of the following facilities do you enjoy?

Cash Credit

Overdraft

Bill Discounting

Bills Collection

Letter of Credit

Others ____________________

9. Transactions

Within the city

Within state

All over India

Overseas Transactions

10. Do you have current account in ICICI Bank?

Yes No

If Yes how will you grade services provided by ICICI Bank?

Excellent Best Good Average Poor

Hospitality

Communication Skill

Working Speed

Attending Query

If No, please go to question 12.



11. How do you rate the following facilities provided by different Banks?

(5 for HIGH & 1 for LOW)

SBI UTI HDFC ICICI

Anywhere Banking

Multi City Cheque

Collections

Bank Timings

ATM Facility

Nearness

Internet Banking

Phone Banking

Mobile Banking

12. Please specify the reason/s for not having an account with ICICI Bank?

_________________________________________________________

13. Suggestions ________________________________________________

________________________________________________

THANK YOU



GRAPHICAL

ANALYSIS



TYPE OF THE ORGANIZATION

160%

238%

32%

40%5

0%6

0%

1

2

3

4

5

6

From the above graph it is seen that:

60% of the respondents are from sole proprietorship.

38% of the respondents are from partnership.

2% of the respondents are from Private Limited Company.

0% of the respondents are from Public Limited Company.

0% of the respondents are from H.U.F.

0% of the respondents are considered from any other sector.



NATURE OF THE ORGANIZATON

10%

276%

316%

48%

50%

1

2

3

4

5


0% of the firms are into Manufacturing Business.

76% of the firms are into Trading Business, which include Wholesaling and Retailing.

16% of the firms are into Dealers or Distributors.

8% of the firms are into Automobiles.

0% of the firms are into Textiles.



ANNUAL TURNOVER

110%

228%

342%

420%

50%

1

2

3

4

5


10% of the firms have their annual Turnover between 10-25 Lakhs.

28% of the firms have their annual turnover between 25-50 Lakhs.

42% of the firms have their annual turnover between 50 Lakhs- 1 Crore.

20% of the firms have their annual turnover between 1 Crore-10 Crores.

0% of the firms have their annual turnover more than 10 Crores.



CREDIT FACILITY

161%

239%

1

2


61% of the firms enjoy Credit Facility.

39% of the firms do not enjoy Credit Facility.



TYPE OF THE CREDIT FACILITY

190%

27%

30%

43%

50%

60%

1

2

3

4

5

6


90 % of the Firms enjoy cash Credit Facility.

7% of the Firms enjoy Over Draft Facility.

0% of the Firms enjoy Bill Discounting Facility.

3% of the Firms enjoy Bill Collection Facility.

0% of the Firms enjoy Letter Of Credit Facility.

0% of the Firms enjoy Other Facilities.



TRANSACTIONS

151%

236%

313%

40%

1

2

3

4


51% of the Firms do their business within the city of Belgaum.

36% of the Firms do their business within the state of Karnataka.

13% of the Firms carry out their business all over India.

0% of the Firms carry out their business outside India.



CURRENT ACCOUNT IN ICICI BANK

120%

280%

1

2


20% of the Firms have their Current Account in ICICI Bank.

80% of the Firms have their Current Account in other Banks.



CURRENT ACCOUNTS IN DIFFERENT BANKS

120%

224%

318%

438%

1

2

3

4


20% OF THE Firms have their Current Account in ICICI Bank.

24% of the Firms have their Current Account in Union Bank Of India.

18% of the Firms have their Current Account in Unit Trust Of India.

38% of the Firms have their Current Account in Other Banks.



CUSTOMER SATISFACTION OF ICICI BANK

0

2

4

6

8

10

12

E B G A P E B G A P E B G A P E B G A P

Hospitality Communication Skill Working Speed Attending Query

DIFFERENT SERVICES

NO

. O

F F

IRM

S

Series1


5 of the Firms quoted that the Hospitality provided is Excellent, but major 10 of the

firms quoted that Hospitality is Best, the other 4 Firms quoted that the Hospitality

provided is good,1of the Firm feels that the Hospitality provided is Average and no

Firm quoted that Hospitality is Poor.

0 Firms quoted that the Communication Skill provided is Excellent, 4 Firms

quoted that Communication Skill provided is Best, but major 9 Firms quoted that

Communication Skill provided is Good, 5 Firms quoted that Communication

Skill provided is Average and minor 2 Firms quoted that Communication Skill

provided is Poor.



Major 8 Firms quoted that Working Speed provided is Excellent, 6 Firms quoted

that Working Speed provided is Best, 3 Firms quoted that Working Speed provided

is Good and 3 Firms quoted that Working Speed provided is Poor.

1 Firm quoted that Attending Query is Excellent, 7 Firms quoted that Attending Query

is Best, 8 Firms Quoted that Attending Query is Good, 3 Firms quoted that Attending

Query provided is Average and 1 Firm quoted Attending Query is Poor.



COMPARISION OF VARIOUS BANKS

0

10

20

30

40

50

60

70

AB

MC

C

CO

L

BT

AT

M

NN IB PB

MB

AB

MC

C

CO

L

BT

AT

M

NN IB PB

MB

AB

MC

C

CO

L

BT

AT

M

NN IB PB

MB

AB

MC

C

CO

L

BT

AT

M

NN IB PB

MB

SBI UTI HDFC ICICI

VARIOUS FACILITIES

TO

TA

L P

OIN

TS

Series1



DATA

ANALYSIS



BIBLIOGRAPHY

Book Title Author

1. Marketing Management Philip Kotler

2. Marketing Research Tull and Hawkins

Websites

www.icici.com

www.google.com

www.indiainfoline.com

www.icicidirect.com


http://www.icicidirect.com/

http://www.indiainfoline.com/

http://www.google.com/

http://www.icici.com/

A project report on market potential of current account for traders

Economy & Finance

Transcript of A project report on market potential of current account for traders