A Study on Financial Services of Commercial Bank With Reference to ICICI Bank ( Final)

7/22/2019 A Study on Financial Services of Commercial Bank With Reference to ICICI Bank ( Final)

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Financial Services Offer By Commercial Bank

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CHP 1: OVERVIEW OF BANKING

INTRODUCTION TO BANK

A bank has been described as an institution engaged in acceptingdeposits and granting loans. It is the institution which deals in money and credit. Itcan also be described as an institution which borrows idle resources, makes fundavailable to those who need it and helps in cheap remittance of money from one

place to another. In the modern time term bank is used in wider term. Now it doesnot refer only to particular place of lending and depositing money but it also acts asan agent which looks after the various financial problems of its customers.

HISTORY OF BANKS:

The banking system in India is based on British banking companywhich is largely branch banking. Commercial banks in India were started duringthe latter half of 19th century Bank of Bengal, Bank of Bombay and Bankof Madras were later amalgamated to form one bank called as Imperial bankof India under the Imperial bank of India Act 1920. The Imperial bank carried with

business of commercial bank manages the public debt office of central and stategovernment. The second half of 19th century saw establishment of Bank ofBaroda, Allahabad bank, and Punjab National Bank. These banks were set up bymerchants and traders to combined trading with banking. These led to the series iffailures of banks. The strengthening of banking system took place after theestablishment of Reserve Bank of India, 1939 as is empowers to regulate the

banking money, inspection of mergers and acquisition in terms of BankingCompanies Act 1949 which later came to be known as Banking Regulation Act1949.


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OVERVIEW OF ICICI BANK

CHP 1.1: INTRODUCTION OF ICICI BANK

ICICI Bank is the largest private sector bank in India in terms of market

capitalization. It is also the second largest bank in India in terms of assets with a

total asset of Rs. 3,674.19 billion (US$ 77 billion) as on June 30, 2009, the total

profit after tax has been Rs. 8.78 billion. Formerly known as Industrial Credit and

Investment Corporation of India, ICICI Bank has an extensive network of 1,544

branches with about 4,816 ATMS located across India and in 18 other countries.

ICICI Bank serves about 24 Million customers throughout the world. It isconsidered as one of the Big Four Banks in India along with State Bank of India,

HDFC Bank and Axis Bank.

ICICI Bank provides a wide range of banking products and financial services to its

retail and corporate customers. It has a wide variety of delivery channels and

specialized affiliates and subsidiaries that ensure the flow of its offerings in the

areas like investment banking, venture capital, life and non-life insurance and asset

management. This bank is also Indias largest credit card issuer. The equity share

of ICICI Bank is listed on various stock exchanges like NSE, BSE, Calcutta Stock

Exchange and Vadodara Stock Exchange etc. Its ADRs are also listed on the New

York Stock Exchange.

ICICI Bank also has the largest international balance sheet among all the banks in

India. It is also expanding its business in the overseas market at an enviable pace.

In 02 September 2008, ICICI Bank recorded a 1.15% growth in net profit over 02

September 2007 to reach at Rs 1,014.21crores. The current and savings account

(CASA) ratio of bank also went up from 25% in 2007 to 30% in 2008.


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Vision

Our vision is a world free of poverty in which every individual has the freedom

and power to create and sustain a just society in which to live.

Mission

Our mission is to create and support strong independent organizations which work

towards empowering the poor to participate in and benefit from the Indian growth

process.


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CHP 1.2: HISTORY OF ICICI BANK

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

institution, and was its wholly owned subsidiary. ICICIs shareholding in ICICI

Bank was reduced to 46% through a public offering of shares in India in India infiscal 1998. ICICI Bank was formed in1995 at the initiative of the World Bank, the

Government of India and representatives of Indian industry. The principal

objective was to create a development financial institution for providing medium-

term and long-term project financing to Indian businesses.

In the 1990s, ICICI transformed its business from a development financial

institution offering only project finance to a diversified financial services group

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

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

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

to be listed on the NYSE.

After consideration of various corporate structuring alternatives in the context of

the emerging competitive scenario in the Indian banking industry, the management

of ICICI & ICICI Bank formed the view that the merger of ICICI with ICICI Bank

would be optimal strategic alternative for both entities and would create the

optimal legal structure for the ICICI groups universal banking strategy.

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

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

Personal Financial Services Limited and ICICI Capital Services Limited, with

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

in January 2002, by the High Court of Gujarat at 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 ICICI group's financing and banking

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


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CHP 1.3: OBJECTIVE OF ICICI BANK

The main objectives of this project are the following:

To study about ICICI BANK and its related aspects like its products & services,

history, organizational structure, subsidiary companies etc.

The Industrial Credit and Investment Corporation of India was registered as a

private limited company in 1955. It was set up as a private sector development

bank to assist and promote private industrial concerns in the country.

(a) To assist in the creation, expansion and modernization of private concerns;

(b) To encourage the participation of internal and external capital in the privateconcerns.

(c) To encourage private ownership of industrial investment.

SWOT Analysis of ICICI bank

1) Strengths of ICICI Bank

ICICI is the second largest bank in terms of total assets and market share

Total assets of ICICI is Rs. 4062.34 Billion and recorded a maximum profit after

tax of Rs. 51 billion and located in 19 countries

One of the major strength of ICICI bank according to financial analysts is its

strong and transparent balance sheet.

ICICI bank has first mover advantage in many of the banking and financial

services. ICICI bank is the first bank in India to introduce complete mobile

banking solutions and jewelry card

The bank has PAN India presence of around 2,567 branches and 8003 ATMs


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ICICI bank is the first bank in India to attach life style benefits to banking services

for exclusive purchases and tie-ups with best brands in the industry such as

Nakshatra, Asmi, Ddamas etc

ICICI bank has the longest working hours and additional services offering atATMs which attracts customers

Marketing and advertising strategies of ICICI have good reach compared to other

banks in India

2) Weaknesses of ICICI Bank

Customer support of ICICI section is not performing well in terms of resolving

complaints

There are lot of consumer complaints filed against ICICI

The ICICI bank has the most stringent policies in terms of recovering the debts and

loans, and credit payments. They employ third party agency to handle recovery

management

There are also complaints of customer assault and abuse while recovering and the

credit payment reminders are sent even before the deadlines which annoys thecustomers

The bank service charges are comparatively higher

The employees of ICICI are bank in maximum stress because of the aggressive

policies of the management to win ahead in the race. This may result in less

productivity in future years
http://www.marketing91.com/benefits/http://www.marketing91.com/benefits/


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3) Opportunities of ICICI Bank

Banking sector is expected to grow at a rate of 17% in the next three years

The concept of saving in banks and investing in financial products is increasing in

rural areas as more than 62% percentage of Indiaspopulation is still in rural areas.

As per 2010 data in TOI, the total number b-schools in India are more than 1500.

This can ensure regular supply of trained human power in financial products and

banking services

Within next four years ICICI bank is planning to open 1500 new branches

Small and non performing banks can be acquired by ICICI because of its financial

strength

ICICI bank is expected to have 20% credit growth in the coming years.

ICICI bank has the minimum amount of nonperforming assets

4) Threats of ICICI Bank

RBI allowed foreign banks to invest up to 74% in Indian banking

Government sector banks are in urge of modernizing the capacities to ensure the

customers switching to new age banks are minimized

HDFC is the major competitor for ICICI, and other upcoming banks like AXIS,

HSBC impose a major threat

In rural areas the micro financing groups hold a major share

Though customer acquisition is high on one side, the unsatisfied customers are

increasing and make them to switch to other banks


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CHP 1.4: FEATURES OF ICICI BANK

The important features of the functioning of the ICICI arc as given below:

The financial assistance as provided by the ICICI includes rupee loans,foreign currency loans, guarantees, underwriting of shares and debentures,

and direct subscription to shares and debentures.

Originally, the ICICI was established to provide financial assistance toindustrial concerns in the private sector. But, recently, its scope has been

widened by including industrial concerns in the public, joint and cooperative

sectors.

ICICI has been providing special attention to financing riskier and non-traditional industries, such as chemicals, petrochemicals, heavy engineering

and metal products. These four categories of industries have accounted for

more than half of the total assistance.

Of late, the ICICI has also been providing assistance to the small scaleindustries and the projects in backward areas.

Along with other financial institutions, the ICICI has actively participated inconducting surveys to examine industrial potential in various states.

In 1977, the ICICI promoted the Housing Development Finance CorporationLtd. to grant term loans for the construction and purchase of residentialhouses.

Since 1983, the ICICI has been providing leasing assistance forcomputerization, modernization and replacement schemes; for energy

conservate; for export orientation; for pollution controller balancing and

expansion: etc.

The ICICI has not contributed much to reduce regional disparities. Aboutthree-fifth of the total assistance given by the ICICI has been received by theadvanced states of Maharashtra, Gujarat and Tamil Nadu.

With effect from April 1, 1996, Shipping Credit and Investment company ofIndia ltd, (SCICI) was merged with ICICI.

The ICICI Ltd. was merged with ICICI Bank Ltd. effective from May 3,2002


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CHP 2: FUNCTIONS OF COMMERCIAL BANK

Modern Commercial Banks perform a large number of functions and services to

industry and commerce. It is not possible t make an exhaustive list of its functions

and services as they are diverse, varied and ever-expanding. The functions of a

bank are increasing day by day depending upon the environment prevailing in the

country. There cannot be a standard pattern of banking functions that can hold

good for all the countries, or even for the same country at different periods of time.

It is not surprising, therefore that banks in developing countries perform many such

functions as to suit their particular requirements and have branched out into new

areas. Banks in modern times are doing a large number of non-traditional

functions. They have thrown their conservative approach and are doing their best

to help all sectors of the economy by adopting progressive and enlightened

approach.

The functions and services rendered by modern banks can be grouped under the

following heads:

A) Primary Functions.

B) Secondary Functions.


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FUNCTIONS OF BANKS

Though borrowing and lending constitute the main functions of banking,yet they are not only functions of commercial banks. Commercial banks are

involved in diversified activities and perform varieties of function. The functionsof a modern bank are classified under the following heads.

CHART: FUNCTION OF BANKS

FUNCTIONSOF BANKS

ACCEPTINGOF

DEPOSITS

ADVABCEOF LOANS

OTHERFUNCTIONS

AGENCYFUNTIONS


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CHP 2.1 PRIMARY FUNCTIONS

Broadly speaking there are two functions which comes under this category:

1) Accepting of Deposits

2) Advancing Loans

ACCEPTING OF DEPOSITS

This is an important function because banks mainly depend on the funds deposited

with them by the public. By offering various types of deposit accounts, banksmobilize the savings of the community. A banks financial strength is measured by

its ability to attract the various types of deposits. People who have surplus money

deposit the same with a bank for safe keeping. The commercial bank receives

deposits on the following four types of accounts:

CHART: ACCEPTING OF DEPOSITS


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CHP 2.1 A (i): SAVINGS BANK ACCOUNT

Savings Bank Accounts are meant to promote the habit of saving among

the citizens while allowing them to use their funds when required. The mainadvantage of Savings Bank Account is its high liquidity and safety. On top of that

Savings Bank Account earns moderate interest too. The rate of interest is decided

and periodically reviewed by the Government of India. Presently, the rate of

interest is 3.5% compounded half yearly.

DEFINITONInvestopedia explains 'Savings Account'

Because savings accounts almost always pay lower interest rates than Treasury

bills and certificates of deposit, they should not be used for long-term holding

periods. Their main advantages are liquidity and superior rates compared to

checking accounts. Most modern savings accounts offer access to funds through

visits to a local branch, over the internet and through automated teller machines.

Savings accounts are accounts maintained by retail financial institutions that pay

interest but cannot be used directly as money (for example, by writing a cheque).

These accounts let customers set aside a portion of their liquid assets while earning

a monetary return.

ICICI Bank offers a host of products and services to its clients. The various types

of services are as follows:

1) Deposits

Savings Account Advantage Deposit Special Savings Account Life Plus Senior Citizens Savings Account


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Young Stars Savings Account Advantage Woman Savings Account Family banking Recurring Deposits Fixed Deposits Current Account

ICICI Bank Savings Accounts Features

The ICICI Bank International debit card is a debit-cum-ATM card providing you

with the convenience of acceptance at merchant establishments and cashwithdrawals at ATMs.

The next time you want to withdraw cash from your ICICI Bank Savings account,

just walk into any bank's ATM and use your ICICI Bank ATM-cum-Debit card for

free. The above benefit is available free of cost for the first 5 transaction per month

upto Rs 10,000 per transaction.

Money Multiplier Facility

Internet Bankingis offered free of cost.

Anywhere Banking - This facility entitles the account holder to withdraw or

deposit cash upto a limit of Rs.50,000 across all ICICI Bank branches.

You can give us various types of standing instructions like transferring to fixed

deposit accounts at regular intervals.

An average monthly balance of Rs.10,000 only in metro and urban locations,

Rs.5,000 only in semi-urban and Rs. 2,000 only in rural locations.

Nomination facilityis available.

Interest is payable half-yearly.
http://www.icicibank.com/Personal-Banking/account-deposit/savings-account/moneymultiplier.htmlhttp://www.icicibank.com/Personal-Banking/account-deposit/savings-account/moneymultiplier.htmlhttp://www.icicibank.com/Personal-Banking/insta-banking/internet-banking/index.htmlhttp://www.icicibank.com/Personal-Banking/insta-banking/internet-banking/index.htmlhttp://www.icicibank.com/Personal-Banking/account-deposit/savings-account/features.html#nfhttp://www.icicibank.com/Personal-Banking/account-deposit/savings-account/features.html#nfhttp://www.icicibank.com/Personal-Banking/account-deposit/savings-account/features.html#nfhttp://www.icicibank.com/Personal-Banking/insta-banking/internet-banking/index.htmlhttp://www.icicibank.com/Personal-Banking/account-deposit/savings-account/moneymultiplier.html


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SILVER SAVINGS ACCOUNT

Silver Savings Account - Features

ICICI Banks Silver Savings Account entitles you to select privileges and offers.

The ICICI Bank International VISA debit card is a debit-cum-ATM cardproviding you with the convenience of acceptance at merchant establishments

and cash withdrawals at ATMs.

Money Multiplier Facility. Internet Banking is offered free of cost. You can give us various types of standing instructions like transferring to fixed

deposit accounts at regular intervals. Nomination facility is available. Interest is payable half-yearly.

The eligibility criteria for opening an ICICI Bank Silver Savings Account?

The Silver Savings Account brings to you exclusive benefits, especially created for

valuable customers like you. To retain membership of this elite Silver Savings

circle, all you need to do is maintain a minimum monthly average balance (MAB)

of Rs.25,000 in your Savings Account. If you do not maintain the required

minimum balances for two consecutive quarters, Silver Savings Account benefits

will be withdrawn.

The minimum balance required to be maintained for an ICICI Bank Silver SavingsAccount.The minimum monthly average balance (MAB) to be maintained in your Silver

saving Account of 25000.
http://www.icicibank.com/Personal-Banking/account-deposit/savings-account/moneymultiplier.htmlhttp://www.icicibank.com/Personal-Banking/insta-banking/internet-banking/index.htmlhttp://www.icicibank.com/Personal-Banking/account-deposit/silver-savings-account/index.html#nominationhttp://www.icicibank.com/Personal-Banking/account-deposit/silver-savings-account/index.html#nominationhttp://www.icicibank.com/Personal-Banking/insta-banking/internet-banking/index.htmlhttp://www.icicibank.com/Personal-Banking/account-deposit/savings-account/moneymultiplier.html


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SPECIAL SAVING SCHEMES

Special Savings Account:

ICICI Banks Special Savings Account provides comprehensive banking services

to non profit motive organizations like Trusts, Associations, Societies, Clubs,

NGOs, Hospitals, Educational and Research Institutes and section 25 companies

and entities eligible for a savings account as per RBI Guidelines .

The ICICI Bank Edge

Free multi city chequebook facility All cheques issued by you will bepayable at par at various ICICI Bank branches across the country

Money Multiplier FacilityOn your request a Fixed Deposit is linked to yourSpecial Savings Account enabling you to enjoy high returns and maximumliquidity. To know more,

No penalty for non-maintenance of minimum balances in the accounts. Internet Banking Phone Banking Free Anywhere banking Free collection of outstation cheques Free monthly account statements Inward remittance through Money2India for FCRA approved trusts Supplementary Savings Solutions with added features

Features of the Money Multiplier Facility offered for Special Saving Scheme

Minimum balance in Special Saving Account should be Rs. 25,000 to generate alinked Fixed Deposit

Fixed Deposit request will be made in multiples of Rs. 5,000 only. You can have more than one Fixed Deposit linked to the same Special Saving

Account. You will have to give a specific request for each Fixed Depositcreating and linking.

All Fixed deposit linked to the account will be enabled for automatic reversesweep in multiples of Rs. 5,000 when the balance in Special Saving Accountfalls below Rs. 10,000.
http://www.icicibank.com/customer-care.htmlhttp://www.icicibank.com/Personal-Banking/account-deposit/fixed-deposit/index.htmlhttp://www.icicibank.com/Personal-Banking/account-deposit/special-savings-account/index.htmlhttp://www.icicibank.com/Personal-Banking/account-deposit/special-savings-account/index.htmlhttp://www.icicibank.com/Personal-Banking/account-deposit/special-savings-account/index.htmlhttp://www.icicibank.com/Personal-Banking/account-deposit/special-savings-account/index.htmlhttp://www.icicibank.com/Personal-Banking/account-deposit/fixed-deposit/index.htmlhttp://www.icicibank.com/customer-care.html


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Life Plus Senior Citizens Account

ICICI Bank's Senior Citizens Savings Scheme (SCSS) is the safest and the most

convenient investment option for your life savings. Its credibility is further

escalated by the fact that it is a Government of India product. Additionally, it

offers the highest interest to depositors, 9% interest per annum.

A Savings Account Service which offers convenience for those who are 60 year

and above. Privilege Banking Variants are available on Life Plus Senior Citizen

account.

Senior Citizens Savings Scheme Details:

Senior Citizens Savings Scheme (SCSS) is a Government of India Product. 9%

interest offered to depositors.

Since the product is offered by Govt of India, this product is one of the most Safest

Investment Option.

Premature closure of account is possible after one year from the date of opening

the account.(Charges applicable).

Advantages of ICICI Banks Senior Citizens Savings Account:

Higher interest rates on Team Deposits. Free special senior citizens Life Plus Debit Card Money Multiplier Facility Anywhere Banking facility-access your account through any ICICI

Bankbranch, ATM or Phone Banking.

Nomination Facility available Monthly Average Balance requirement of Rs 5000 Facility of Direct Credit of Interest to ICICI Bank Account. Account Statement containing the details of Deposit Balance & transactions. Designated Senior Citizen desk at all ICICI Bank branches.


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Young Stars Savings Account

We teach your child to manage their personal finances through a savings account.

Advantage of Young Stars Savings Account

Open a Kids Savings Account, Fixed Deposit or a Recurring Deposit. Free Personalized Cheque Book. Free international Debit Card on request Daily withdrawal and spends of upto Rs 5000 (choice of limit on debit card

available)

Free Internet Banking

Montly Average Balance (MAB) requirement of Rs 5000

Advantage Woman Savings Account

An account for the independent woman of today that will help her save for thefuture while enjoying the present.

Special international womans Debit Card with lots of offers

Free Unlimited Access to any banks ATM Bill Pay facility & Multi channel access Free usage of payable-at-par cheque book Nomination facility available Zero balance facility with an RD of rs 2000/- or montly Average Balance

(MAB) requirement of rs 10,000/-.


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Family Banking

Superior product benefits of privilege Banking, Wealth

Management and Global Private Client (GPC) available to allthe members of your family while the required minimumbalance can maintained in any one of the accounts.

Advantage of Family Banking Access to superior benefits for the entire family. Flexibility to maintain balances across amount. Lower minimum balance requirement at individual customer level Single family Bank- convenience for the entire family and easier funds

management.

PROFESSIONAL SAVINGS ACCOUNT

At ICICI Bank, the staffs always strive to cater to all the present and emerging

financial needs of our customers. ICICI Bank Professional Savings Account is an

exclusive set of banking and financial services, catering to the specific needs of

discerning professionals. It brings together a host of services, privileges and

lifestyle benefits.

Access to Privilege Banking Zone Dedicated Relationship Manager International Debit Card with insurance coverage Facility to link with Current Account under CASA Family Anywhere Banking with higher limits Daily account balance alerts Multi-city cheque book with 25 leaves And many more.


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FEATURES OF RECURRING DEPOSITSWith ourrecurring deposits you can avail a host of facilities with ICICI Bank.

You may check on recurring account receivable, recurring account payable,

recurring account fees and all recurring debit account transactions.

A recurring deposit account with ICICI Bank allows you a loan against the

deposit. Our new recurring deposit account also has a special feature - Non-

applicability of Tax Deduction at Source (TDS).

The minimum balance of deposit is Rs.500 per month and thereafter in multiples of

Rs.100. The tenure ranges from 6 months to a maximum period of 10 years,

recurring deposit of 3 months thereafter.

The recurring deposit also comes with a nomination facility.

An ideal way to invest small amounts of money every month and end up with up

with a large amount on maturity

Encourages savings without stress on your finances. High rates of interest (identical to the fixed deposit rates).

Non-applicability of Tax Deduction at Source (TDS). Nomination Facility available Loan Facility available

Minimum Balance**

The minimum balance of deposit is Rs. 500 per month and thereafter, in multiples

of Rs. 100.

Period of Deposit

The minimum period is 6 months, and thereafter in multiples of 3 months.


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Tax on Recurring Deposits

First, what I do know for sureRDs are not tax free!

While doing research for this article I came across a few forums where peoplewere asking if interest income from RDs is tax free or not. I dont know what the

origin for the question is but it could be people confusing no TDS with any tax atall.

Banks dont deduct tax at source on RDs but the interest itself is taxable like otherinterest income. It will be added to the rest of your income and taxed at your slab.

This is what I think will happen

If you take a RD for the duration of over a year, say 2 yearsthen you will have tosee how much interest accrues to you in one financial year, and then declare thatinterest as part of your return and pay tax on it.

So, even though you are still paying installments for the RD, and it hasnt matured yet, you will need to declare the income that has accrued to you, and pay tax on it.

Interest rates on Recurring Deposits

I was going through the interest rate page of ICICI Bank, and saw that they give

interest rates of 8.25% on RDs of 12, 15, 18, and 21 months, but they give 9.25%on a 390 day fixed deposit.

A few other bank websites said that they offered RDs at the same interest rate asthe fixed deposit, but I think that means exclusion of special interest rates that

banks give on deposits of 390, 555, 400 day maturities etc., and since these are thematurities that give you the higher interest rate, it looks like the interest on a RDwill be lower than a fixed deposit.

Stopping Recurring Deposits Early

Banks allow you to stop your recurring deposit earlier than the maturity period, butlike fixed deposits, you get a lower interest rate than what you have settled for, andin some cases there is some penalty as well, which is also called a service charge insome banks.


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CHP 2.1 A (iii): FIXED DEPOSITS

A Fixed Deposit (also known as FD) is a financial instrument provided by Indian

banks which provides investors with a higher rate of interest than a regular savingsaccount, until the given maturity date . It may or may not require the creation of a

separate account. Some banks may offer additional services to FD holders such as

loans against FD certificates at competent interest rates.

Fixed deposits are a high-interest-yielding Term deposit offered by banks in India.The most popular form of Term deposits are Fixed Deposits, while other forms ofterm Deposits are Recurring Deposit and Fixed Deposits (the latter is actually acombination of Demand deposit and Fixed deposit).

Although banks can refuse to repay FDs before the expiry of the deposit, theygenerally don't. This is known as a premature withdrawal. In such cases, interest is

paid at the rate applicable at the time of withdrawal. For example, a deposit ismade for 5 years at 8 %, but is withdrawn after 2 years. If the rate applicable on thedate of deposit for 2 years is 5 per cent, the interest will be paid at 5 per cent.Banks can charge a penalty for premature withdrawal.

Banks issue a separate receipt for every FD because each deposit is treated as adistinct contract. This receipt is known as the Fixed Deposit Receipt (FDR), that

has to be surrendered to the bank at the time of renewal or encashment.

Income tax regulations require that FD maturity proceeds exceeding Rs 20,000 notto be paid in cash. Repayment of such and larger deposits has to be either by " A/c

payee " crossed cheque in the name of the customer or by credit to the saving banka/c or current a/c of the customer.

ICICI BANK FIXED DEPOSITS ACCOUNTS

Fixed Deposits are options which help you grow your money thus creating wealthin a safer and secure way. Corporates can invest their suplus funds in fixeddeposits for a wide range of tenures. The minimum deposit amount is Rs 10,000.
http://en.wikipedia.org/w/index.php?title=Recurring_Deposit&action=edit&redlink=1http://en.wikipedia.org/wiki/Flexi_Fixed_Depositshttp://en.wikipedia.org/wiki/Flexi_Fixed_Depositshttp://en.wikipedia.org/w/index.php?title=Recurring_Deposit&action=edit&redlink=1


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Features of Fixed Deposits Accounts are

Fund through a debit to the operative account/cheque for clearing While interest is compounded quarterly, payment of interest is quarterly,

monthly or on maturity.

Interest payouts can be through credit to your account or through bankerscheque.

Benefits of Fixed Deposit.

Wide range of tenures-7days to 10years Choice of investments plan- Traditional and Cumulative Deposits Premature / Partial withdrawal permitted (subject to applicable charges) Loan facility available / you can avail loan up to 90% of the principal and

accrued interest. Auto renewal facility-you can choose this option so that the deposit can be

renewed on maturity. Interest compounded quarterly/ monthly payout available Additional interest rate of 0.5% for senior citizens

Auto-Renewal of ICICI Bank Fixed Deposits with Fixed Deposit Receipt

-All existing FDS, against which an fixed Deposit Receipt has been issued, shall beinstructed for auto-renewal on maturity for the same tenure at the rates of interest

prevailing at time of maturity, unless instructions to the contrary are received by usby june 28, 2011. The new deposit amount shall consist of the maturity amount . soaccumulated excluding the Tax Deducted at Source, if any.

-You also have the choice to request for any other maturity instruction ofclosure/premature or partial withdrawal/change in tenure/change in scheme/ orrequest for new FD advice or receipt of the FD before June 28,2011or afterrenewals henceforth, by submitting the original Fixed Deposit Receipt, to thenearest ICICI Bank Branch. In case of loss of original FD receipt, you are

requested to submit an indemnity, as per format prescribed by the bank.

-Further more, tenure of the renewed FD may also be modified by the customer,upto 30days, post the maturity date of an FD, by submitting the original FixedDeposit Receipt, to the nearest ICICI Bank Branch.


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CHP 2.1 A (iv): CURRENT ACCOUNT

Current bank account is opened by businessmen who have a number ofregular transaction with the bank, both deposits and withdrawals. It is also Knows

as Demand Deposits.Current account can be opened in co-operative bank and commercial bank. Inwithdraws at any time without giving any notice, It is also suitable for making

payments to creditors by using cheques, cheques received from customer can bedeposited in this account for collection.In India current account can be opened by depositing rs 500 to rs 1000. Thecustomers are allowed to withdraw the amount with cheques and they generally donot get any interest.

Current Account holder get one important advantage of overdraft facility.

The current account product provides a host of services like Anywhere banking inIndia also anywhere in the world, which enables the customer to operate from any

branch, provides for faster collection of upcountry cheques, Doorstep bankingwhich provides for delivery and pick-up of cash and documents, Internet bankingwhich enables online tracking of the account, execution of transactions and so on.Multiple variants of current accounts are offered by ICICI Bank to suit yourspecific requirements.

The Features of Current Bank Account

The Following are the important features of current account are as follows:-

The main objective of current bank account is to enable the businessmen toconduct their business to conduct their business transactions smoothly.

There is no restriction on the number and amount of deposits. There is also norestriction on the withdrawals.

Generally bank does not pay any interest on Current account. nowadays, somebanks do pay interest on current accounts.

Current account is of continuing nature and as such there is no fixed period. Current account indicates deposits always payable on demand. Hence they are

called demand deposits.

There is no restriction on the number and amount of withdrawals from thisaccount.


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Banks insist on the maintenance of certain minimum balance on currentaccount. If the balance goes below this amount, the bank has a right to close

that account

Generally no interest is paid on money deposited in this type of account.Recently, banks have started giving lower interest on this account.

Overdraft facilities are given in case of current accounts only. Current account suits the requirements of businessmen, joint stock companies,

institutions, societies, public authorities and public corporations etc. whose

banking transactions happen to be numerous on every working day.

All banking services are made available to current account holders arereasonable service charges.

Banks are given full freedom to decide the rules and regulations regarding theoperation of current account.

Advantages of Current Bank Account

The advantages of current account are as follows:-

Current account enables businessmen to conduct his business transactionssmoothly.

The businessmen can withdraw any amount at any time from their currentaccounts. There are also no restrictions on withdrawals. The businessmen can make direct payment to their creditors with the help of

cheques.

The bank collects money on behalf of its customers and creditors the same totheir accounts.

Current account enables the account holders obtain overdraft facility. The creditors of the account holder can get credit. Multi-location Funds transfer Mobile banking Electronic Funds Transfer Corporate Internet Banking Periodical e-mail statements in multiple formats, including MT940, Multicash,

Excel, text, pdf, etc.


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Roaming Current Account

Roaming Current Account (RCA) offered by ICICI Bank travels the distance with

your business and helps effect lucrative business relationships. RCA brings with itthe concept of 'Anytime Anywhere' banking, enabling you to operate your RCA

from any of our branches in over 700 cities across India.

Recognising the fact that every business has particular requirements, a range of

variants are available under the branch of RCA to suit varying needs. The choice of

variants is based on committed Monthly Average Balance. It is also possible to

change your current variant every month in response to changing needs.

The following features are also available with all variants:

Multi-city cheques/Local cheques Unlimited withdrawal and deposit Demand drafts and pay orders Funds transfer Doorstep banking

Benefits

Choose an account type that suits your business from the available variants Cheque issued from your RCA may be encashed at any of the 700 centers

across India Allows your customer to deposit cheques into your account from any ICICI

Bank branch Speedy reflection of the deposited cheque in your account

Variants

You may choose from the available six variants of the Roaming Current Account

depending on your requirements:

Standard Classic Premium

Gold Gold Plus Platinum


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Gold Roaming Current Account

ICICI Bank's Gold Current account gives a wide range of facilities with an MAB(Monthly Average Balance) of Rs. 1,00,000/-.

The following benefits comes with Gold Current Account:

Free Collections & Payments through NEFT and RTGS Free Local Cheque Collection at base location (Intra-city) Free Non-Cash services* Free Cash withdrawal at non base branch through Self cheques up to Rs.

50,000/- per day Free Cash deposits at base branch location up to Rs. 10 lacs per month Free Internet Banking and Phone Banking Free Cash deposits at non base branch location up to Rs. 1 lac per month Free Mobile Banking

Gold Plus Roaming Current Account

ICICI Bank's Gold Plus Current account gives a wide range of facilities with anMAB (Monthly Average Balance) of Rs. 3,00,000/-.

The following benefits comes with Gold Plus Current Account:

Free Collections & Payments through NEFT and RTGS. Free Local Cheque Collection at base location (Intra-city). Free Non-Cash services. Free Cash withdrawal at non base branch through Self cheques up to Rs.

50,000/- per day . Free Cash deposits at base branch location up to Rs. 30 lacs per month .

Free Internet Banking and Phone Banking . Free Cash deposits at non base branch location up to Rs. 3 lacs per month. Free Mobile Banking .


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Made2Order Current Account

ICICI Bank's Made2order Account (M2O) is an account which is tailor-made

keeping in mind transactions which are unique to your business. The M2O accountgives you the flexibility to choose services relevant to your specific business needs.

Depending on the services required, you may either maintain the required Monthly

Average Balance (MAB) or pay fees as per the volume and the services utilised.

Special features of the M2O Account include:

Flexibility in deciding the MAB. Flexibility in deciding the free higher limits in services which are required

frequently. Customised DD/Pay Order limits. Flexible cash deposit limits at both the base and the non-base branches Customised charges and free limits for services which are required

frequently. Flexibility in choosing free cheque leaves.

Prepaid Current Account

PCA (Prepaid Current Account)ICICI Bank presents a special current account for those who prefer to pay a fixed

prepaid charge on an annual basis and who do not want to commit any balance atany point of time. In Prepaid Current Account, the customer does not have tomaintain any minimum or average balance but just has to charge his account withRs. 2999 every year. Charge once and enjoy free* banking for the whole year. It issimple and transparent and the advantages include:

The ICICI Bank Edge.

Free personalized cheque book. Free business banking debit card. Free unlimited fund transfers. Free Internet/ Phone/ Mobile Banking. *50 free transactions every month and charges thereafter.


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CHP 2.1 B : Advancing Loans

The money that is received by banks by way of deposits is utilized for

granting loans and advances to worthy borrowers. Apart from playing a vital role

in the development of the economy, banking is a business with a motive to earnprofit. The successful operation in this function forms the main source of income

i.e. profit of the bank. Banks advances enable commerce and industry to meet their

short term and long term requirements of funds. In recent years, the lending

attitude of banks has undergone a marked change. Now, advances granted by

banks are expected to develop all sectors of the economy.

The strength of a bank is primarily judged by the soundness of its advances. The

advances by banks may be made in any one or more of the following forms:

a) Overdrafts. b) Cash Credit. c) Loans.

CHP 2.1 B (i): OVERDRAFTS

An overdraft occurs when withdrawals from a bank account exceed the

available balance. In this situation a person is said to be "overdrawn".

If there is a prior agreement with the account provider for an overdraft protection

plan, and the amount overdrawn is within this authorised overdraft limit,

then interest is normally charged at the agreed rate. If the balance exceeds the

agreed terms, then fees may be charged and higher interest rate might apply.

The following are the distinctive features of overdrafts:

i) This facility is given only to current accountholders.

ii) Here a current accountholder is permitted by the banker to draw more than what

stands to his credit.

iii) The banker may take some collateral security or may grant such advance on the

personal security

iv) The customer is permitted to withdraw the amount as and when he needs and to

make deposit in his account as and when it is convenient.

v) Interest is charged on the amount overdrawn and for a short period it is utilized.


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CHP 2.1 B (ii): CASH CREDIT

This account is the primary method in which Banks lend money against

the security of commodities and debt. It runs like a current account except that the

money that can be withdrawn from this account is not restricted to the amountdeposited in the account. Instead, the account holder is permitted to withdraw a

certain sum called "limit" or "credit facility" in excess of the amount deposited in

the account. Cash Credits are, in theory, payable on demand. These are, therefore,

counter part of demand deposits of the Bank.

The following are the notable features of the cash credit arrangements:

i) Under this scheme, the banker specifies a limit for each customer upto which the

customer is permitted to borrow against some security or guarantee.

ii) The customer is allowed to withdraw from this account as and when he needs

money and deposits in this account any surplus that he has

iii) Generally the customer is required to provide tangible asset as security to cover

the amount borrowed.

iv) For availing of the cash credit facility it is not necessary to have an account in abank.

v) The advances sanctioned under this arrangements are technically repayable on

demand, but in practice they roll over a period of time. It is a seasonal borrowing

renewed from time to time.

vi) This method of borrowing is very popular in India, accounting for about 70 per

cent of the total bank credit. Cash credit facility is regularly granted to commercial

and industrial concern for longer periods.


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CHP 2.1 B (iii): LOANS

A loan is a type of debt. Like all debt instruments, a loan entails the

redistribution of financial assets over time, between the lender and the borrower. In

a loan, the borrower initially receives orborrows an amount of money, calledthe principal, from the lender, and is obligated to pay back or repay an equal

amount of money to the lender at a later time. Typically, the money is paid back in

regular installments, or partial repayments; in an annuity, each installment is the

same amount.

The following are the distinctive features of loan facility granted by a bank:

i) A fixed amount sanctioned for a definite period of time is called loan.

ii) Loans are repayable at one time or in installments as agreed.

iii) Interest is charged on the total amount of the loan sanctioned whether it is

utilized or not.

iv) Loans are given on the security of shares, Government securities, life insurance

policies, gold and other assets. In suitable cases, unsecured advances are also

granted by banks.

v) There are different types of loans. For instance, term loans, participation loansand personal loans.

vi) Banks charge a slightly lower rate of interest on loan account than on overdraft

and cash credit, other things being equal.


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Chp 2.2: SECONDARY FUNCTIONS

These secondary functions can be classified into two main divisions:

1) Agency Services.

2) General Utility Service

Chp 2.2 A: AGENCY SERVICES

The agency services are provided to regular customers of the bank. While

providing agency services, banker acts as the agent of the customer. Some of theimportant services rendered to the clients are given below:

a) Payment of insurance premium, subscriptions and contributions etc of societies,

clubs, associations etc which are of recurring nature.

b) Collection of salary and pension bills, dividend coupons and interest payable on

debentures and other securities

c) Transfer of funds of customers from one bank to another by means of bank

drafts, mail or telegraphic transfer.

d) Purchase and sale of stock, shares, debentures and other securities as per

instructions from the customers.

e) Collection and payment of cheques, bills and promissory notes.

f) Acting as attorney or representative of client.

g) Acting as a trustee, executor or administrator.

h) Acting as correspondents, agents or representative of their customers to other

banks or financial corporations.

i) Filing of income tax return

j) Collection of postal orders


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Chp 2.3 B: GENERAL UTILITY SERVICES

CHARTS: GENERAL UTILITY SERVICES

Some important utility services provided by commercial banks are:

Safe Deposit Vault

Collection of Cheques, Bills and promissory Notes

Issuing Letter of Credit

Bank Drafts

A T M

Debit Card

Credit Card

Tele- Banking

Internet Banking

Mobile Banking


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Chp 2.3 B (i): Safe Deposit Vault

A bank undertakes the safe custody of the customers valuables and

documents by providing a safe deposit vault. These are kept in speciallyconstructed strong rooms. There are lockers available to the customer on a nominal

charge. There are two keys for each locker, one is given to the customer and the

other remains with the Bank Manager. The locker is opened as well as closed by

both the keys one after another. Customers can keep custody. A register is

maintained by the bank in which all the particulars about the valuables and

documents are recorded in it. Banks provide the services of safe deposit vault on

hire basis to the customers.

Chp 2.3 B (ii): Collection of Cheques, Bills and promissory Notes

The customers deposit cheques, bills of exchange and promissory note into

their accounts with the banks. These instruments are collected by the bank on

behalf of their customers and credited to their accounts. These services are

provided by the cheques, bills and promissory notes issued on branches out of the

city are collected with some nominal charges for postage etc. this is a very popular

and essential service provided by the banks to their customers.

Chp 2.3 B (iii): Issuing Letter of Credit

A letter of credit is a commercial instrument of assured payment. It is

widely used by the businessman for various purposes. The bank undertakes to

make payment to a seller on production of documents stipulated in the letter of

credit. It specifies as to when payment is to be made which may be either on

presentation of documents by the paying bank or at some future date depending

upon the terms stipulated in the letter. There are many parties involved in the letterof credit. One is the applicant who is the buyer of goods or importer of goods. He

makes an application to a bank who issues the letter of credit. The bank is known

as issuing bank. The beneficiary is named in the letter of credit who is the seller of

goods or exporter. Other banks are also involved in the transaction such as

negotiating bank, confirming bank and advising bank.


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Chp 2.3 B (iv): BANK DRAFTS

A bank draft is an order from one branch to another branch of the same bank to pay

a specified sum of money to a person named therein or to his order. A draft isalways payable on demand. Banks issue drafts at the request of the customers on

their branches at the place of destination for remitting money from one place to

another place. Any person who wants to remit money has to purchase a draft from

the bank by paying the amount in advance to the bank. The purchaser of the draft

then sends the draft to the payees place of residence by post or courier for the

purpose of encashment at the drawee branch of the bank. The bank issuing the

draft charges some commission depends upon the amount of the draft. The

purchaser need not be a customer of the bank.The bank draft is like a bill of exchange payable on demand. In case the draft is

lost by a purchaser, he has to report to the issuing banker for loss of the draft

without any endorsement, the banker may safely refuse to pay the amount of the

draft. The bank should take all the precautions and payment of the draft should be

made only when the banker is fully satisfied about the valid title of the holder. The

banker should take an indemnity bond and then issue a duplicate draft to the

purchaser. The draft may be cancelled by the bank if it is not delivered to the

payee. When a bank draft is delivered to the payee he acquires a right in theinstrument, which cannot be set aside by the stop-payment order issued by the

purchaser. The bank issuing the draft sends an advice to the drawee branch,

intimating about the issue of the draft. The drawee branch after verifying the

signature of the authorized officials makes the payment. However, the payment of

the draft should not be refused because of non-receipt of drawing advice.


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Chp 2.3 B (v): Automated Teller Machine (ATM)

ATM is a channel of banking service to its customers. Its traditional and primary

use is to dispense cash upon insertion of a plastic card and its unique PIN i.e.Personal Identification Number. The banks issue ATM card to their customers

having current or savings account holding a certain minimum balance in their

accounts. ATM card is a plastic card with a magnetic strip with the account

number of the individuals. When the card is inserted into the machine the sensing

equipment of the machine identifies the account holder and asks his PIN. It is a

secret number which is known only to the account holder.

If the PIN is matched, the ATM pops up a menu screen which allows the user to

transact almost all types of banking transactions, such as withdrawal of cash,deposit of cash/cheques.

Following are the advantages of ATM:

1. ATM provides 24hour service; the customer can withdraw cash up to a certain

limit during 24hours. It is now called all time money facility.

2. It provides a great deal of convenience to customers. Most of the ATMs are

located at the convenient place and as such this facility is a boon to customers.

ATM machines are installed at suitable locations such as Airport, Railway station,

Residential colony, near big malls etc.

3. ATM facility also reduces pressure on bank staff. The bank staff is free from the

botheration of keeping large ready cash for withdrawal by people.

4. Here the work of deposition and withdrawal is handled by the machine. The

machines are perfect and provide accurate service. The human errors are absent

when operations are performed by machines.

5. Operations through machines provide a kind of privacy and secrecy to banking

business.


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Chp 2.3 B (vi): DEBIT CARD

A debit card is a plastic card that provides an alternative payment method

to cash when making purchases. Functionally, it can be called an electronic check,

as the funds are withdrawn directly from either the bank account or from theremaining balance on the card. In some cases, the cards are designed exclusively

for use on the Internet, and so there is no physical card.

In many countries the use of debit cards has become so widespread that their

volume of use has overtaken or entirely replaced the check and, in some instances,

cash transactions. Like credit cards, debit cards are used widely for telephone and

Internet purchases and, unlike credit cards, the funds are transferred immediately

from the bearer's bank account instead of having the bearer pay back the money at

a later date.

Debit cards may also allow for instant withdrawal of cash, acting as the ATM

card for withdrawing cash and as a check guarantee card. Merchants may also

offer cashback facilities to customers, where a customer can withdraw cash along

with their purchase.

Advantages & Disadvantages of Debit Card:

Advantages of Debit Card:

1. No need to carry cash. Just about every merchant accepts the debit card

including the dollar store and some thrift shops. You do not need to worry about

losing cash or misplacing it in a pair of jeans only to find it two months later. If

your purse or wallet is stolen your money is safe since the perpetrator would need

your PIN number to access your funds.

2. You don't need to make a trip to the bank every time you need to withdrawalmoney. You can use your card just about any where you go, and if you need the

cash you can access your money at an ATM machine any time of day or night.


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Disadvantages of Debit Card:

1. With a debit card you must keep accurate records. You must record each

transaction so you will know what your account balance is at all times. If you do

not keep records you run the risk of overdrawing your account which will result inbank fees. Not to mention the embarrassment you will suffer at the checkout line

when your card is denied.

2. If your child needs lunch money you can't just hand them the debit card. You

have to drive to the nearest ATM machine to access a few rupees to send to school

with your child

Chp 2.3 B (vii): CREDIT CARD

A credit card is an instrument of payment. It is a source of revolving credit. The

cards are plastic cards issued by the banks to their customers. The name of the

customer, card number and expiry date are printed on the plastic cards. Some

banks also use the photograph of the customers on the credit card. The cardholder

can buy goods or services from various merchant establishments where such

arrangements exist. The card issuing bank makes the payment to the supplier orseller. The outstanding amount on account of use of the credit card is payable by

the card holder to the bank over a specific period which carries a fixed amount of

interest. A debit card is a payment card used to obtain cash, goods and services

automatically debiting the payments to the cardholders bank account instantly, in

which credit balance exists.

A credit card is more then a simple piece of plastic, it is first and foremost a

flexible payment tool accepted at 30 million locations worldwide, and if the card

balance is paid off every month, then no interest is charged on purchases made so,essentially, short-term credit is granted without the consumer paying any interest.


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Some of the features of Credit Card are:

1. Access to unsecured credit (no collateral required against amounts charged).

2. Interest-free payment from time of purchase to the end of the billing period

3. Instant payment of purchases, allowing for instant receipt of goods and services4. 24/7 access

5. Fraud protection

Advantages & Disadvantages of Credit Card:

Advantages of Credit Card:

1. Offer free use of funds, provided you always pay your balance in full, on time.

2. Be more convenient to carry than cash.

3. Help you establish a good credit history.

4. Provide a convenient payment method for purchases made on the Internet andover the telephone.

5. Give you incentives, such as reward points, that you can redeem.

Disadvantages of Credit Card:

1. Cost much more than other forms of credit, such as a line of credit or a personalloan, if you don't pay on time.

2. Damage your credit rating if your payments are late;

3. Allow you to build up more debt than you can handle;

4. Have complicated terms and conditions.


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Chp 2.3 B (viii): TELE BANKING

Telephone banking is a service provided by a Commercial Banks, which allows itscustomers to perform transactions over the telephone.

Most telephone banking services use an automated phone answering system with

phone keypad response or voice recognition capability. To guarantee security, the

customer must first authenticate through a numeric or verbal password or through

security questions asked by a live representative. With the obvious exception of

cash withdrawals and deposits, it offers virtually all the features of an automated

teller machine: account balance information and list of latest

transactions, electronic bill payments, funds transfers between a customer'saccounts, etc.

Usually, customers can also speak to a live representative located in a call centre or

a branch, although this feature is not always guaranteed to be offered 24/7. In

addition to the self-service transactions listed earlier, telephone banking

representatives are usually trained to do what was traditionally available only at the

branch: loan applications, investment purchases and

redemptions, chequebook orders, debit card replacements, change of address, etc.

Banks which operate mostly or exclusively by telephone are known as phone

banks. They also help modernize the user by using special technology.


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Advantages & Disadvantages of Tele Banking:

Advantages of Tele Banking:

1. You may not have time to visit your bank every week and if your business islocated out of town, getting to a branch can be time consuming and expensive.With telephone banking, your bank is on the other end of the line whenever youneed it.

2. You can manage your business account at any time, which is ideal if you arebusy during the day with running your business.

3.As well as the basics of running your business account paying a bill,transferring money, setting up a direct debit and so on you may also be able toapply for finance and make an appointment with your Bank Manager.

4. Making payments by phone can simplify your banking you dont need toconfirm the payments in writing, and you can check all your transactions againstyour statement when it arrives.

Disadvantages of Tele Banking:

1. The most common one would have to be the fact that not all banks and buildingsocieties offer 24 hour telephone banking.

2. Telephone banking like online banking can seem impersonal, but like onlinebanking, if you use it on conjunction with your regular bank account it can be auseful tool.


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Chp 2.3 B (ix): INTERNET BANKING

Internet is a channel of service to banking customers. The access to account

information as well as transaction is offered through the world-wide-web networkof computers on the internet. Each account holder is provided with a PIN similar tothat of ATM or phone banking. The access to the account is allowed to thecustomer upon a match of the account details and PIN entered on the computersystem. A higher level of security may be reached by an electronic fingerprint.Transaction such as e-business, Railway-Air Reservation, payment of bills, transferof money can be carried out while sitting in the house with the help of an internet.

INTERNET BANKING SERVICES

1) Bill Payment Service: You can facilitate payment of electricity and

telephone bills, mobile phone, credit card and insurance premium bills as

each bank has tie-ups with various utility companies, service providers and

insurance companies, across the country. To pay your bills, all you need to

do is complete a simple one-time registration for each biller. You can also

set up standing instructions online to pay your recurring bills, automatically.Generally, the bank does not charge customer for online bill payment.

2) Fund Transfer: You can transfer any amount from one account to another

of the same or any another bank. Customers can send money anywhere in

India. Once you login to your account, you need to mention the payee s

account number, his bank and the branch. The transfer will take place in a

day or so, whereas in a traditional method, it takes about three working days.

3) Credit Card Customers: With Internet banking, customers can not only

pay their credit card bills online but also get a loan on their cards. If you lose

your credit card, you can report lost card online.


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4) Investment: You can now open an FD online through funds transfer. Now

investors with interlinked demat account and bank account can easily trade

in the stock market and the amount will be automatically debited from their

respective bank accounts and the shares will be credited in their demat

account. Moreover, some banks even give you the facility to purchase

mutual funds directly from the online banking system.

5) Recharging your Prepaid Phone: Now just top-up your prepaid mobile

cards by logging in to Internet banking. By just selecting your operator's

name, entering your mobile number and the amount for recharge, your

phone is in action within no time.

6) Shopping: With a range of all kind of products, you can shop online and the

payment is also made conveniently through your account. You can also buy

railway and air tickets through Internet banking.


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Chp 2.3 B (x): MOBILE BANKING

Mobile banking also known as M-Banking, SMS Banking is a term used for

performing balance checks, account transactions, payment etc. Over the last fewyears, the mobile and wireless market has been one of the fastest growing markets

in the world and it is still growing at a rapid pace. With mobile technology, banks

can offer services to their customers such as doing funds transfer while travelling,

receiving online updates of stock price or even performing stock trading while

being stuck in traffic.

A specific sequence of SMS messages will enable the system to verify if the clienthas sufficient funds in his or her wallet and authorize a deposit or withdrawal

transaction at the agent.

Many believe that mobile users have just started to fully utilize the data capabilities

in their mobile phones. In Asian countries like India, China, where mobile

infrastructure is comparatively better than the fixed-line infrastructure, and in

European countries, where mobile phone penetration is very high, mobile banking

is likely to appeal even more.

Mobile Banking Services

Account Information1) Mini-statement and checking of account history2) Alerts on account activity3) Monitoring of term deposits4) Access to loan statements5) Access to card statements6) Mutual fund/ equity statements


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7) Pension plan management8) Insurance policy management9) Status on cheque, stop payment on cheque

10) Ordering cheque books

11) Balance checking in the account

12) Recent transactions

13) Due date of payment

14) PIN provision

15) Blocking of cards

Payments, Deposits, Withdrawals and Transfers1) Domestics and international fund transfers2) Micro-payment handling3) Mobile recharging4) Commercial payment processing5) Bill payment processing6) Peer to Peer payments7) Withdrawal at banking agent8) Deposit at banking agent


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Chp 3: Awards and Recognitions

ICICI Bank was voted as the Most Trusted Brand among private sectorbanks in the 2010 Economic Times Brand Equity Most Trusted BrandsAwards and ranked 7th in the list of the Top 50 service brands.

ICICI Bank received the 2010 World Finance UK award for:i. Excellence in Remittance Business, Worldwide

ii. Excellence in NRI Services, Worldwideiii. Excellence in Private Banking Business, APAC Region

For a sixth time in a row, ICICI Bank has received the Most Preferred AutoLoan Brand in the Financial Services category at the CNBC Consumer

Awards.

ICICI Bank has won Gold in the Readers Digest Trusted Brands 2010Consumer award in the Finance category for.

i. Best Bankii. Best Credit Card Issuing Bank

ICICI Bank amongst the top 3 to receive the FE-EVI Green BusinessLeaders Award, in the banking industry.

ICICI Bank wins the Asian Banker Award for Best Banking SecuritySystem.

Forbes 2000 most powerful listed companies survey ranked ICICI Bank 4thamong the Indian companies and 282

ndglobally.

ICICI Bank wins the Asian Banker Award for Excellence in SME Banking2009.

Mr. N. Vaghul, Former Chairman, ICICI Bank was awarded the PadmaBhushan.


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Chp 4 : Questionnaire

Customer attitude towards Financial service provided by Icici bank

1. Which type of bank account do you have?a) Savings A/C b) Fixed deposit A/C c) Current A/C d) Savings & current A/C

2. Since how many years you are operating bank account?a) Below 1 years b) above 3 years c) between 3 to 5 years d) above 5 years

3. Have you ever heard about value added service in your bank?Yes No

4. Which of the following value added service do you use?ATM, Electronic fund transfer, Any branch banking Internet banking, Credit cards , Demat

5. Do you know about internet banking?Yes No

6. Reasons for not using internet banking service?Lack of knowledge complex procedure Lack of time

7 Customerattitude towards Financial service provided by IcicibankAre you sat isf ied with t he s ervice provided by b ank, i f not reason?Yes No If not, specifyreason..

8. What is your opinion about services provided by ICICI BANK?.

..

9. Do you get any complaint regarding icici product. If yes mention the complaint?Yes No If yes mention .

10. According to you which concept of this bank is good?Brand Cost effective Service without mistake quick service


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Chp 5 : DATA ANALYSIS AND INTERPRETATION

Q1) Customer attitude towards Financial service provided

by Icicibank

Survey analysis (questionnaire)

A survey was conducted of about 10 people who have Bank Account in ICICI

Bank. These included Several Housewives, Businessmen, Professionals, Students

etc. The following analysis was done on the basis of the survey conducted.

Interpretation

From the above chart we came to know that, overall percentage of service class

people having complete knowledge about different types of services provided by

the bank is 37%, those having some idea about it is 46% and the percentage of

people having no awareness of various services provided by the bank is 17%. It

can reasonably, be concluded that nearly 85% of the population is having

awareness about newly introduced services.

1st Qtr

37%

2nd Qtr

46%

3rd Qtr

17%

4th Qtr

100%

Awareness about financial services

Fully aware Had an idea No idea Total


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Q2 Awareness of various banking services provided by

banks.

Interpretation

Banks constitute various channels through which services are provided in terms of

ATMs, Debit Card, Credit Card, Phone Banking, Mobile Banking, Internet

Banking etc, of which the first six have been covered. Amongst these ATM scores

the largest used service status (26.03%) as indicated by abovefigures. Close on theheels is Debit card (17.75%), Credit card (14.79%), while phone banking lags

behind by scoring the least (11.83 %.)

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

ATM Debit

Card

Credit

Card

Phone

Banking

Mobile

Banking

Internet

Banking

Awareness about different Banking Services

Percentage


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50

Q 3) Sources from which the respondents get the knowledge about the

innovative financial services.

Interpretation

The above table indicates the percentage distribution of awareness avenues, the

major are in favour of advertisements, which score 34% among different avenues

such as personal visit, executives of the banks, advertisements and friend/relatives.

While the least score is for personal visit and that of other sources.

15%

21%

34%

26%

4%

Sources of Awareness about various innovative

financial products

Personal VisitExecutive from Bank

Advertisements

Friends/Relatives

Others


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Q4) Is your Bank following the Know Your Customer (KYC) norms in providing

services.

Interpretation

The above table indicates the KYC norms followed by the banks. The banks

are providing the customer with proper information about various banking

services. The banks are trying to find the expected service of the customer.

10%

5%

Formulation of KYC norms

Yes No


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Q5) Growth rate of credit cards

Interpretation

The above table indicates the growth rate of credit cards, which scores 0.3

million in the year 2008 and it has grown upto 0.6 million in 2009.The

growth rate is 100%. This indicates that the distribution of credit cards is on

large scale. The ICICI Bank is considered as largest issuer of credit cards.

0.3

0.6

(0.2)

0.0

0.3

0.5

0.8

2007 2008 2009

Number of credit cards


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Q6) Are you satisfied with the services provided by ICICI Bank with

respect to Financial Service Offer by Commercial Bank ?

Interpretation:

Out of the total number of people surveyed. 80% of them were satisfies with the

services provided by ICICI Bank with respect to Financial Services offer by

Commercial Bank. 20% said that the services were not upto their expectations.

80%

20%


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Chp 6: CONCLUSION

The project of Financial Services offer by commercial bank was undertaken at

ICICI Bank Ltd. Working under this project I learned various services in detail

which banks generally follow.

It also helped in gaining knowledge about different concepts provided under

different services .

The Financial Services of the Banks has become very vital in the smooth operation

of the banking activities. The Project work has certainly enriched the knowledge

about the effective management of the various services in Banking Sector.

Lastly as according to data collection we conclude that given findings and

suggestions need to be considered which can prove to be effective to the Banks.


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Chp 7: SUGGESTIONS

Prevention against frauds of Credit Cards To take necessary action against defaulters Providing with proper information relating to various services Guidance for investment in various securities in order to protect the interest

of investors.

Approaching the customers for investment in innovative financial services. Special schemes to be provided on some types of services


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Chp 8: BIBLIOGRAPHY

BOOKS:

Financial Services & Systems- K.K. Sasidharan- Alex Mathews

Financial Markets & Services- Gordon-

Natarajan

Web Sites:

www.wikipedia.com www.icicibank.com www.google.com www.ask.com www.scbrid.com
http://www.wikipedia.com/http://www.icici/http://www.google.com/http://www.ask.com/http://www.scbrid.com/http://www.scbrid.com/http://www.ask.com/http://www.google.com/http://www.icici/http://www.wikipedia.com/

A Study on Financial Services of Commercial Bank With Reference to ICICI Bank ( Final)

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