A- Study on Life Insurance

8/12/2019 A- Study on Life Insurance

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INTRODUCTION:

The insurance sector in India governed by Insurance Act, 193, the !i"e

insurance cor#oration Act, 19$% and &enera' insurance (usiness Act, 19)*, Insurance

Regu'atory and Deve'o#+ent AuthorityIRDA- Act, 1999 and other re'ated Acts.

/ith such a 'arge #o#u'ation and the unta##ed +ar0et area o" this #o#u'ation

Insurance ha##ens to be a very big o##ortunity in India.

cono+y Today it stands as a business gro2ing at the rate o" 1$*4 #ercent

annua''y. Together 2ith ban0ing services, it adds about ) #er cent to the country5s

&D6. A'' this gro2th the statistics o" the #enetration o" the insurance in the country is

very #oor. Near'y 47 o" Indian #o#u'ations are 2ithout !i"e insurance cover and the

8ea'th insurance. This is an indicator that gro2th #otentia' !i"e insurance sector is

i++ense in India. It 2as due to this i++ense gro2th that the regu'ations 2ere

introduced in the insurance sector and in continuation a'hotra Co++ittee; 2as

constituted by the govern+ent in 1993 to e


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Insurance De"inition

A #ro+ise o" co+#ensation "or s#eci"ic #otentia' "uture 'osses in

e


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R?@C has a'so deve'o#ed a +e+bers on'y 8urricane C'ub to #rotect the

boats o" 'oca' custo+ers 2ho choose to stay in ?'orida and need a re"uge "ro+ the

stor+.

As a resu't o" storing 2ith R?@C, =ua'i"ied boat o2ners +ay receive u# to a

*47 credit o"" o" their hu'' #re+iu+ 2hi'e +aintaining "u'' ?'orida coverage 2hich

2e have been in"or+ed is a high'y unusua' credit, never be"ore #rovided in the >tate

o" ?'orida. R?@C is ha##y to #rovide insurance re"erra's u#on re=ue

>o+e Areas o" ?uture &ro2th:

!i"e Insurance:

The traditiona' 'i"e insurance business "or the !IC has been a 'itt'e +ore than a

savings #o'icy. Ter+ 'i"e 2here the insurance co+#any #ays a #redeter+ined a+ount

i" the #o'icy ho'der dies 2ithin a given ti+e but it #ays nothing i" the #o'icy ho'der

does not die- has accounted "or 'ess than *7 o" the insurance #re+iu+ o" the !IC

itra and Naya0, *441-. ?or the ne2 'i"e insurance co+#anies, ter+ 'i"e #o'icies

2ou'd be the +ain 'ine o" business

!i"e Insurance 6'ans

!i"e insurance #roducts assure your "a+i'y 2i'' receive "inancia' su##ort,

even in your absence. 6ut si+#'y, 2hen you buy insurance you #rovide your "a+i'y

2ith a su+ o" +oney, shou'd so+ething ha##en to you. It thus #er+anent'y #rotects

your "a+i'y "ro+ "inancia' crises.

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In addition to serving as a #rotective cover, 2hen you buy insurance you

create a "'e


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bene"its o""ered to the custo+er re"'ect the needs o" the custo+er at that #articu'ar 'i"e

stage, and hence ensures that the "inancia' goa's o" that 'i"e stage are +et.

On the basis o" 2hich 'i"e stage you are in and the corres#onding

insurance needs, ICICI #rudentia' #'ans can be categoried into the "o''o2ing three

ty#es:

ducation Insurance 6'an

/ea'th creation #'an

6rotection 6'an

8ea'th Insurance:

The 8ea'th insurance e


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+aority o" 2or0ers are in the in"or+a' sector. As a resu't, +ost 2or0ers do not have

any retire+ent bene"its to "a'' bac0 a"ter retire+ent.

Tota' assets o" a'' the #ension #'ans in India a+ount to 'ess than U>D F4

bi''ion.

There"ore, there is a huge sco#e "or the deve'o#+ent o" #ension "unds in India.

The "inance +inister o" India has re#eated'y asserted that a !atin A+erican sty'e

re"or+ o" the #rivatied #ension syste+ in India 2ou'd be 2e'co+e. &iven a'' the

#ros and cons, it is not c'ear 2hether such a 2ho'esa'e #rivatiation 2ou'd rea''y

bene"it India or not.

C8AN&> IN IN>URANC 6RODUCT> AND 6!AN> IN *414:

(y the end o" *414, IRDA +ade "ar reaching changes in U!I6 #'ans.

U!I6 have beco+e +ore stab'e and better as IRDA has ca##ed the charges, e


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TRND> IN *411:

The changes +ade in *414 and other discussions initiated 2i'' set the trend

o" insurance industry in *411 and beyond.

!i"e insurance:

The changes in U!I6 structure 2i'' +a0e it +ore #o#u'ar in *411.8o2ever,

there is concern that insurance #roviders 2i'' discourage se''ing U!I65s and they +ay

bac0 to traditiona' #'ans.

There 2i'' be e+#hasis on traditiona' #'ans such as 2ho'e 'i"e insurance,

endo2+ent #'an, and +oney bac0 #'an. The ter+ insurance +ay get chea#er as the

#re+iu+ is inverse'y #ro#ortiona' to the 'i"e e


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ND O? T8 >TUD@:

India 2ith about *44 +i''ion +idd'e c'ass househo'd sho2s a huge unta##ed

#otentia' "or #'ayers in the in the insurance industry. >aturation o" +ar0ers in +any

deve'o#ed econo+ies has +ade the Indian +ar0et even +ore attractive "or g'oba'

insurance +aors. The insurance sector in India has co+e to a #osition o" very high

#otentia' and co+#etitiveness In the +ar0et. Indians, have a'2ays seen 'i"e insurance

as a ta< saving device, are no2 sudden'y turning to the #rivate sector that are

#roviding the+ ne2 #roducts and variety "or their choice.

Consu+ers re+ain the +ost i+#ortant centre o" the insurance sector. A"ter the

entry o" the "oreign #'ayers the industry is seeing a 'ot o" co+#etition and thus

i+#rove+ent o" the "oreign #'ayers the industry is seeing a 'ot o" co+#etition and thus

i+#rove+ent o" the custo+er service in the industry. Co+#uteriation o" o#erations

and u#dating o" techno'ogy has beco+e i+#erative in the current scenario. ?oreign

#'ayers are bringing in internationa' best #ractices in service through use o" 'atest

techno'ogies.

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O(GCTIH> O? T8 >TUD@:

ar0eting obectives:

Increase re#eat custo+ers.

Decrease custo+er ac=uisition costs.

&enerate brand e=uity, =uanti"ied by an increase in unso'icited

service re=uests.

?inancia' Obectives:

6ro"itabi'ity by the end o" year one.

>teady, sustainab'e gro2th.

Decrease training costs by *7 a =uarter.

>CO6 O? T8 >TUD@:

The study is basica''y +ade to ana'ye the various sche+es to

high'ight the diversity o" invest+ent that +utua' "und o""er

Through the study one 2ou'd understand ho2 co++on +an cou'd

"ruit"u''y convert #ittance into great #enny by 2ise'y investing into the right sche+e

according to his ris0 abi'ities.

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T8ODO!O&@ O? T8 >TUD@:

The data co''ection +ethods inc'ude both the #ri+ary and secondary co''ection

+ethods.

6ri+ary co''ection +ethod: This +ethod inc'udes the data

co''ection "ro+ the #ersona' discussion 2ith the authoried c'er0s and +e+bers o" the

ICICI 6rudentia' !i"e Insurance

>econdary co''ection +ethod:The 'ectures o" the su#erintend o" the

de#art+ent o" +ar0et o#erations and so on., a'so the data co''ected "ro+ the ne2s, +againes

o" the Ange' (ro0ing and di""erent boo0s issue o" this study.

!IITATION> O? T8 >TUD@:

This is a theoretica' study on'y based on various sources such as ne2s

#a#ers 2ebsites, artic'es, co''ege "acu'ty an ICICI 6rudentia' sta"".

>tudy avai'abi'ity o" secondary data.

The ti+e constraint 2as one o" the +aor #rob'e+s.

The study is 'i+ited to se'ected insurance "und sche+es.

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ercanti'e, &enera' Assurance and >2adeshi !i"e 'ater (o+bay !i"e- 2ere so+e o"

the co+#anies estab'ished during the sa+e #eriod. 6rior to 191* India had no

'egis'ation to regu'ate insurance business. In the year 191*, the !i"e Insurance

Co+#anies Act, and the 6rovident ?und Act 2ere #assed.

The !i"e Insurance Co+#anies Act, 191* +ade it necessary that the #re+iu+

rate tab'es and #eriodica' va'uations o" co+#anies shou'd be certi"ied by an actuary.

(ut the Act discri+inated bet2een "oreign and Indian co+#anies on +any accounts,

#utting the Indian co+#anies at a disadvantage

The "irst t2o decades o" the t2entieth century sa2 'ot o" gro2th in insurance

business. ?ro+ FF co+#anies 2ith tota' businessin"orce as Rs.**.FF crore, it rose to

1)% co+#anies 2ith tota' businessin"orce as Rs.*9 crore in 193. During the

+ushroo+ing o" insurance co+#anies +any "inancia''y unsound concerns 2ere a'so

"'oated 2hich "ai'ed +iserab'y.

The Insurance Act 193 2as the "irst 'egis'ation governing not on'y 'i"e

insurance but a'so non'i"e insurance to #rovide strict state contro' over insurance

business. The de+and "or nationa'iation o" 'i"e insurance industry 2as +ade

re#eated'y in the #ast but it gathered +o+entu+ in 19FF 2hen a bi'' to a+end the

!i"e Insurance Act 193 2as introduced in the !egis'ative Asse+b'y.

8o2ever, it 2as +uch 'ater on the 19th o" Ganuary 19$% that 'i"e insurance

in India 2as nationa'ied. About 1$F Indian insurance co+#anies, 1% nonIndian

co+#anies and )$ #rovident 2ere o#erating in India at the ti+e o" nationa'iation.

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Nationa'iation 2as acco+#'ished in t2o stages initia''y the +anage+ent o"

the co+#anies 2as ta0en over by +eans o" an Ordinance, and 'ater, the o2nershi# too

by +eans o" a co+#rehensive bi''. The 6ar'ia+ent o" India #assed the !i"e Insurance

Cor#oration Act on the 19th o" Gune 19$%, and the !i"e Insurance Cor#oration o"

India 2as created on 1st >e#te+ber, 19$%, 2ith the obective o" s#reading 'i"e

insurance +uch +ore 2ide'y and in #articu'ar to the rura' areas 2ith a vie2 to reach

a'' insurab'e #ersons in the country, #roviding the+ ade=uate "inancia' cover at a

reasonab'e cost.

Indian Insurance Industry:

The insurance business is gro2ing at an annua' rate o" *1.9 #er cent. Together

2ith ban0ing services, it accounts "or about ).1 #er cent to the country5s &D6.

8o2ever Insurance #enetration tends to rise as inco+e increases, #articu'ar'y in 'i"e

insurance. India 2ith about *44 +i''ion +idd'e c'ass househo'ds sho2s a #otentia' "or

insurance industry.

>aturation o" +ar0ets in +any deve'o#ed econo+ies has +ade in the Indian

+ar0et even +ore attractive "or g'oba' insurance +aors. The insurance sector 2as

o#ened u# "or #rivate #artici#ation "our years ago and the #rivate #'ayers are active in

the 'ibera'ied environ+ent. The insurance +ar0et have 2itnessed dyna+ic changes

2hich inc'udes #resence o" a "air nu+ber o" insurers both 'i"e and non'i"e seg+ent.

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ost o" the #rivate insurance co+#anies have "or+ed oint venture #artnering 2e''

2ith recognied "oreign #'ayers across the g'obe. The Indian insurance +ar0et

accounts on'y "or 4.$9 #er cent o" U>D *,%*) bi''ion g'oba' insurance +ar0et.

CO6AN@ 6RO?I!

ICICI 6RUDNTIA! A>>T ANA&NT CO6AN@

!IITD

ICICI 6rudentia' utua' ?und is one o" the 'argest +utua' "und houses in

India. ICICI 6rudentia' utua' ?und is a oint venture bet2een #rudentia' #'c, one o"

UBs 'argest #'ayers in the insurance J "und +anage+ent sectors and ICICI (an0, a

2e''0no2n and trusted na+e in "inancia' services in India. ICICI and 6rudentia'

ca+e together in 1993 to #rovide +utua' "und #roducts in India and today are the

'argest #rivate sector +utua' "und co+#any in India. ICICI 6rudentia' Asset

anage+ent Co+#any, in a s#an o" ust over eight years, has "orged a #osition o"

#ree+inence in the Indian utua' ?und industry as one o" the 'argest asset

+anage+ent co+#anies in the country 2ith assets under +anage+ent o" Rs.$4,)F*.4)

crores as on ay 31, *44)-. The Co+#any +anages a co+#rehensive range o"

sche+es to +eet the varying invest+ent needs o" its investors s#read across % cities

in the country.

6RUDNTIA!:

stab'ished in !ondon in 1F, 6rudentia' #'c, through its businesses in the

U, U> and Asia, #rovides retai' "inancia' services #roducts and services to +ore

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than *1 +i''ion custo+ers, #o'icyho'ders and unit ho'ders 2or'd2ide 2ith over

U>KF44 as o" 31st Dece+ber, *44$- bi''ion in "unds under +anage+ent. 6rudentia'

e+#'oys so+e *3,444 sta"" 2or'd2ide.

In Asia, 6rudentia' has 'i"e insurance and "unds +anage+ent o#erationsacross

across t2e've countries China, 8ong ong, India, Indonesia, Ga#an, orea,

a'aysia, the 6hi'i##ines, >inga#ore, Tai2an, Thai'and and Hietna+. 6rudentia' has

cha+#ioned custo+ercentric #roducts and services "or over 4 years, su##orted by

an etatutory:

ICICI 6rudentia' utua' ?und erst2hi'e 6rudentia' ICICI utua' ?und- the

?und- 2as set u# as a Trust s#onsored by 6rudentia' #'c through its 2ho''y o2ned

subsidiary na+e'y 6rudentia' Cor#oration 8o'dings !td- and ICICI (an0 !td. ICICI

6rudentia' Trust !i+ited erst2hi'e 6rudentia' ICICI Trust !i+ited- Trust co+#any-

is the Trustee to the ?und and ICICI 6rudentia' Asset anage+ent Co+#any !td.

erst2hi'e 6rudentia' ICICI Asset anage+ent Co+#any !i+ited- AC- is the

Invest+ent anager to the ?und.

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ICICI (an0 !td ICICI (an0- and 6rudentia' 6'c acting through its

2ho''y o2ned subsidiary na+e'y 6rudentia' Cor#oration 8o'dings !td- are the

#ro+oters o" the AC and the Trust Co+#any. ICICI (an0 current'y ho'ds $17

sta0e in both the co+#anies and the ba'ance F97 sta0e in both the co+#anies is he'd

by 6rudentia' #'c acting through its 2ho''y o2ned subsidiary na+e'y 6rudentia'

8o'dings Cor#oration !td-.

6rudentia' 6'c acting through its 2ho''y o2ned subsidiary na+e'y

6rudentia' Cor#oration 8o'dings !td- trans"erred %7 o" its shareho'ding in both the

co+#anies to ICICI (an0 2.e." August *%, *44$. >ubse=uent'y in accordance 2ith the

a##rova' granted by the (oard o" Directors and the shareho'ders o" the AC and the

Trust Co+#any the na+e o" the AC has been changed to ICICI 6rudentia' Asset

anage+ent Co+#any !i+ited and the na+e o" the Trust Co+#any has been

changed to ICICI 6rudentia' Trust !i+ited. >(I has vide its 'etter no

IDL6LF9%L4) dated Ganuary *3, *44) conveyed its no obection to the said

change o" na+es o" the AC J the Trust co+#any.

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The said change o" na+es has a'so been a##roved by the Registrar o"

Co+#anies, NCT o" De'hi J 8aryana, inistry o" Co+#any A""airs, &ovt o" India.

The (oard o" Directors o" the Trust co+#any have at their +eeting he'd on *4th

?ebruary *44) accorded a##rova' "or the change o" na+e o" the utua' ?und to ICICI

6rudentia' utua' ?und as 2e'' as o" the various sche+es L#'ansLo#tions there under.

>(I has vide its !etter Nos IDL6L941%L4) J IDL6L941)4L4) dated A#ri'

4*, *44) accorded a##rova' "or the sa+e.

A2ard:

ICICI 6rudentia' Dyna+ic 6'an has been ran0ed ICRA ?R 1 in the category

Diversi"ied =uity M De"ensive "or its 1 year #er"or+ance ti'' Dece+ber 31, *44%.

There 2ere %9 sche+es in the category. The ran0 is an outco+e o" an obective and

co+#arative ana'ysis against various #ara+eters inc'uding: ris0 adusted returns, "und

sie, sector concentration, #ort"o'io turnover, 'i=uidity, co+#any concentration and

average +aturity. The ran0ing +ethodo'ogy did not ta0e into account entry and eI6, in this the

"eature a''o2s an investor to increase his #eriodic invest+ent through an auto+ated

route in +u'ti#'es o" Rs.$44.Ti'' no2 investors cou'd not increase their >I6 a+ounts.

They had to go in "or a "resh #'an. /hy TO6 U6

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A >yste+atic Invest+ent 6'an >I6- a''o2s an investor to achieve his "inancia'

goa' by saving "or it regu'ar'y Ni'esh >hah.De#uty anaging Director, ICICI

6rudentia' AC says: An >I6 2ith TO6U6 gives the investors the advantage o"

#o2er o" co+#ounding 2hich 2i'' enab'e the+ to reach their "inancia' goa' "aster;.

6roducts o" ICICI 6rudentia' +utua' ?und:

ICICI 6rudentia' +utua' ?und sche+es consist o" various categories 'i0e Debt

?unds, =uity ?unds and (a'anced ?unds.

=uity ?unds:

=uity "unds see0 to #rovide +a


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INH>TNT 68I!O>O68@:

The overriding obective o" the AC in +anaging its invest+ents is to

#roduce a consistent'y above average 'ongter+ #er"or+ance.

The AC be'ieves in a botto+u# a##roach to stoc0 #ic0ing. This +eans that

the "ocus is on the "unda+enta' =ua'ity o" co+#anies as o##osed to a "ocus on "avored

sectors and +ar0et +ove+ents.

The AC 2i'' "o''o2 a structured invest+ent #rocess in order to identi"y the

best stoc0s "or inc'usion in the #ort"o'io. This 2ou'd invo've consistent'y e


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The AC 2i'' endeavor to ba'ance the increased cost on account o" higher

#ort"o'io turnover 2ith the bene"its derived there "ro+.

The "unds o""ered under this category are:

ICICI &ro2th 6'an

ICICI 6rudentia' Ta< 6'an

ICICI 6rudentia' ?C& 6'an

ICICI 6rudentia' Techno'ogy 6'an

ICICI 6rudentia' 6o2er

ICICI 6rudentia' Inde< ?und

ICICI 6rudentia' Dyna+ic 6'an

ICICI 6rudentia' Discovery ?und

ICICI 6rudentia' +erging >TAR ?und

ICICI 6rudentia' In"rastructure ?und

ICICI 6rudentia' >ervice Industries ?und

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(a'anced ?unds:

(a'anced "unds are +ore even'y invested in e=uities and inco+e securities.

(a'anced and e=uityinco+e "unds are suitab'e "or conservative investors 2ho 2ant

high current yie'd 2ith so+e gro2th. I" you see0 to generate 'ongter+ ca#ita'

a##reciation and current inco+e, an invest+ent in the ba'anced "und 2ou'd be idea'.

It gives you an etud

6'an

ICICI 6rudentia' Chi'd Care 6'an &i"t

6'an

ICICI 6rudentia' ('ended 6'an

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Debt ?unds:

The "unds are suitab'e "or investors 2ho 2ant to +a


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The "unds o""ered under this category are

ICICI 6rudentia' !i=uid 6'an

ICICI 6rudentia' !i=uid 6'an Dividend O#tion

ICICI 6rudentia' Inco+e 6'an

ICICI 6rudetia' &i't ?und M Invest+ent 6'an

ICICI 6rudetia' &i't ?und

ICICI 6rudetia' onth'y Inco+e ?und

ICICI 6rudetia' ?ihort Ter+ 6'an

ICICI 6rudetia' !ong Ter+ 6'an

ICICI 6rudetia' ?'e


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?eatures o" ICICI 6rudentia' utua' ?und sche+es:

ach ?und sche+e o" ICICI 6rudentia' is diversi"ied based on its

obective

ach ?und >che+e has its o2n #ort"o'io.

ach ?und sche+e is +anaged by a s#eci"ied ?und anager

A'+ost every ?und >che+e has a "eature o" >I6 >yste+atic

Invest+ent 6'an-.

?or the >I6 investors there is an additiona' advantage that they can

avai' the "aci'ity o" Auto Debit o" the a+ount every +onth.

ost o" the "und sche+es are given #'ans 'i0e &ro2th, dividend and

Dividend reinvest+ent.

Trigger o#tion is one o" the additiona' "eatures o" ICICI 6rudentia'

?und sche+es 2here the investors can direct AC to 2ithdra2 their "unds 2hen the

NAH is do2n.

very investor 2i'' be sent hisLher Account in"or+ation be"ore the

third 2or0ing days o" the +ar0et.

The investor is a'so #rovided 2ith the additiona' "eature i.e. >2itch

o#tion. There"ore the custo+er can s2itch "ro+ one "und sche+e to another.

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The investor is a'so having Dividend rede+#tion as and 2hen it is

dec'ared. A'' the investors 2ho o#ted "or Dividend rede+#tion 2i'' be sent che=ues.

An investor can redee+ the a+ount he invested any ti+e he 2ants.

On'y i" it is o#en ended sche+e- /here as the investor 2i'' be charged a certain

#ercent as entryLe


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ICICI (an0 2as voted as the ost Trusted (rand a+ong #rivate

sector ban0s in the *414 cono+ic Ti+es (rand =uity ost Trusted (rands

A2ards and ran0ed )th in the 'ist o" To# $4 service brands

ICICI (an0 received the *414 /or'd ?inance U a2ard "or:

ervices category at the CN(C

Consu+er A2ards

ICICI (an0 has 2on &o'd in the Readers Digest Trusted (rands

*414 Consu+er a2ard in the ?inance category "or a- (est (an0 and b- (est Credit

Card Issuing (an0

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ICICI (an0 2on the (est Trade ?inance (an0 and (est ?oreign

:

ICICI (an0 received the (est ?oreign tructured

hedging instru+ents India /inner, *411 "or Interest Rate and Currency

6roducts, by Asia Ris0 Cor#orate Ran0ings

ICICI (an0 2on the (est !o0a' (an0 &o'd by Trade and "or"aiting

A2ards,U.

r. N. Haghu', ?or+er Chair+an, ICICI (an0, received the !i"eti+e

Achieve+ent A2ard, by (usiness2or'd

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s. Chanda ochhar, anaging Director J CO 2as ran0ed 14th in

the 'ist o" To# $4 /o+en In /or'd (usiness *411, by ?inancia' Ti+es

s. Chanda ochhar, anaging Director J CO, "eatured in the 8a''

O" ?a+e o" ost 6o2er"u' /o+en in Indian business by (usiness Today

s. Chanda ochhar, anaging Director J CO, a2arded the >0och

Cha''enger A2ards *411, "or (an0ing. The >0och a2ards recognies best #ractices in

#eo#'e, #roects and institutions "or inc'usive gro2th

s. Chanda ochhar, anaging Director J CO, in the 'ist o" *$

+ost #o2er"u' #ro"essiona' Association in the "o''o2ing categories:

o (est ?inancia' Inc'usion Initiative "irst #rie-

o (est On'ine (an0 runner u#-

o (est use o" (usiness Inte''igence runner u#-

o Techno'ogy (an0 o" the year runner u#-

*41* A/ARD>:

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Insurance:

In "inancia' sence: The "inancia' de"inition "ocuses on an arrange+ent

that redistributes the cost o" une


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In 'ega' sence: The 'ega' de"inition "ocuses on a contractua' arrange+ent

2hereby one #arty agress to co+#ensate another #arty "or 'osses. The "inancia'

de"inition #rovides "or the 'osses 2hereas the 'ega' de"inition "or the 'ega''y

en"orceb'e contract that s#e''s out the 'ega' rights, duties and ob'igations o" a'' the

#arties to the contract.

Costs and (ene"its o" Insurance

The #ur#ose o" insurance +ode o" ris0 trans"er is to #rovide econo+ic

against the 'osses that +ay be incurred but to chance events such as

Death

Disabi'ity

cono+ic 'osses

One #arty the insure- "or a set a+ount o" +oney,#re+iu+- agrees to #ay the

other #arty insured or bene"iciary-,a su+ o" +oney bene"it - u#on the occurrence o"

an event 2hich +ay or +ay not occur. Insurance #rovides econo+ic #rotection

against 'osses that +ay be incurred due to chance events that +ay or +ay not occur

during the e""ective ti+e o" the contract ca''ed a #o'icy. The insurance o" business

organisations is essentia' in the sence that advertise+ents, i" not guarded, +ay a""ect

the business itse'" the business o2ner5s #ersona' #ro#erty and +ay a'so threaten the

continued o#eration o" the business and threaten the continued o#eration o" the

business and threaten he o2ner5s "inancia' 2e''being.

Insurance Device

31


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The "unda+enta' characteristics o" insurance are:

It invo'ves trans"er o" ris0 "ro+ the individua' to the grou#,and

There is sharing #oo'ing- o" 'osses on so+e e=uitad'e basis such that

"ortuitous 'osses 2i'' be inde+ni"ied#aid-.

ore s#eci"ica''y, the cost and bene"its o" insurance are:

(ene"its:

Rei+burse+ent "or 'osses

Reduction in tension and "ear

Avenue "or invest+ent M 'i"e insuarance invest+ent o""icer attractive

return.

6revention o" 'osses

Credit +u'ti#'ication

Costs o" insurance to society

Cost o" (usiness o#erations socia' 2astage o" resources

?raudu'ent and e@>T

32


32/64

eaning o" ?inancia' >yste+:

The econo+ic deve'o#+ent o" any country de#ends u#on the e


33/64

?INANCIA! ART>:

The "inancia' +ar0et #'ays a crucia' ro'e in the econo+ic deve'o#+ent o" a

country by "aci'itating the a''ocation o" scarce resources. (y trans"erring resources

"ro+ the savers to the borro2ers, it directs resources "ro+ the id'e to the #roductive

sector, thus acce'erating invest+ent activities in the econo+y. The a''ocation "unction

o" the "inancia' +ar0et has been described succinct'y by >tig'it 199F-: P?inancia'

+ar0ets essentia''y invo've the a''ocation o" resources. This can be thought o" as the

brain o" the entire econo+ic syste+, the 'ocus o" centra' decision+a0ing i" they "ai'.

Not on'y 2i'' the sectors5 #ro"it be 'o2er than 2ou'd other2ise have been, but the

#er"or+ance o" the entire econo+ic syste+ +ay be i+#aired.5

The i+#ortance o" "inancia' deve'o#+ent 2as a+#'y ac0no2'edged by

c'assica' econo+ists Ada+ >+ith and others-, 2ho be'ieved that there is a c'ose

re'ationshi# bet2een ca#ita' accu+u'ation and the #rocess o" econo+ic deve'o#+ent.

8o2ever, the i+#ortance o" "inancia' "actors in the deve'o#+ent #rocess 2as 'arge'y

ignored and "orced saving 2ere considered the best +eans o" "inancing deve'o#+ent.

(ut Pthe resu'tant "inancia' re#ression is thought to be a +aor cause o" 'o2 savings

rates and the underdeve'o#+ent o" the "inancia' sector5.

eaning o" ?inancia' ar0et:

A "inancia' +ar0et is a +echanis+ that a''o2s #eo#'e to easi'y buy and se''

"inancia' securities, co++odities and other "ungib'e ite+s o" va'ue at 'o2 transaction

costs and at #rices that re"'ect the e""icient +ar0et hy#othesis. ?inancia' +ar0ets have

evo'ved signi"icant'y over severa' hundred years and are undergoing constant

innovation to i+#rove 'i=uidity

34


34/64

Insurance Trends in India:

/ith the deregu'ation in Indian Insurance industry, the +ono#o'y o" #ub'ic

sector co+#anies in 'i"e insurance and genera' insurance has co+e to an end. This has

aug+ented the innovative #ractices initiated by the #rivate #'ayers. &ro2th in the

interactive techno'ogy such as internet has "urther created a 2ave o" e


35/64

8istory o" Indian Insurance:

The ancient origin o" insurance is +ersion, 2hose bri''iant and 'earned Traits

des Assurances, "irst #ub'ished in 1)3, is sti'' read 2ith res#ect and ad+iration.

The resu't sho2s that insurances 2ere 0no2n to the ancients such as Ro+ans,

6hoenicians Rhodians, a'though the business o" under2riting co++ercia' ris0s 2as

#robab'y not high'y deve'o#ed. The histories o" !ivy and >uetonius sho2s that the

contractors 2ho undertoo0 to trans#ort #rovisions and +i'itary stores to the troo#s in

>#ain sti#u'ated that the govern+ent shou'd assu+e a'' ris0 o" 'oss by reason o" #eri's

o" the sea or ca#ture and this 2as #robab'y the "irst ti+e 2hen insurance #rocess 2as

0no2n. There 2ere "riend'y societies organied, "or the #ur#ose o" e


36/64

(ritishIndia 6eriod:

Insurance in India 2ithout any regu'ations started in the nineteenth century. It

2as a ty#ica' story o" a co'onia' era 2here a "e2 (ritish insurance co+#anies

do+inated the +ar0et serving +ost'y 'arge urban centers. Co+#any started by

uro#eans in Ca'cutta 2as the "irst 'i"e insurance co+#any on Indian >oi'.

(o+bay utua' !i"e Assurance >ociety indicated the birth o" "irst Indian 'i"e

insurance co+#any in the year 1)4, and covered Indian 'ives at nor+a' rates. 1934s

2as the 'ast o" the o'dsty'e crises in the Indian econo+y because it +ar0ed the

beginning o" the end o" the co'onia' state and an acce'eration o" the #ace o"

industria'iation as entre#reneurs +oved their ca#ita' out o" the countryside.

Inde#endent India reduced its vu'nerabi'ity to e


37/64

Deregu'ation actua''y he'#ed the #oorest in India as it 2ou'd eventua''y create

+ore e+#'oy+ent and "aster gro2th. @et the intense "ears o" 'ibera'iation in the

'o2er +idd'e c'ass and a+ong 2or0ing c'ass e+#'oyees o" the state sector, #ose

serious ris0s in "reeing the econo+y. It +ight be #re"erab'e to introduce 'ibera'iation

during an econo+ic u#s2ing 2hen the ris0 o" s2itching obs is 'ess trau+atic. The

three 'ibera'iation e#isodes in Indian econo+ic #o'icy have "o''o2ed c'ear cyc'ica'

#atterns.

cono+ic #o'icy has s2ung broad'y bet2een contro's and greater o#enness,

2ith a tendency to2ard decontro''ing 'arger and +ore i+#ortant seg+ents o" the

econo+y.

Nationa'iation 6hase o" Indian Insurance:

19FF:The Nationa'iation o" insurance industry gathered +o+entu+ in 19FF

2hen a bi'' to a+end the !i"e Insurance Act 193 2as introduced in the !egis'ative

Asse+b'y.

19$%: 1$F Indian insurance co+#anies, 1% nonIndian co+#anies and )$

#rovident societies 2ere ta0en over by the centra' govern+ent and nationa'ied. !IC

"or+ed by an Act o" 6ar'ia+ent, vi. !IC Act, 19$%, 2ith a ca#ita' contribution o"

Rs.$ Crore "ro+ the &overn+ent o" India.

19)*: The &enera' Insurance (usiness Nationa'iation- Act, 2hich

nationa'ied the genera' insurance business in India 2ith e""ect "ro+ 1st Ganuary

19)3. 14) insurers a+a'ga+ated and grou#ed into "our co+#anies vi. the Nationa'

38


38/64

Insurance Co+#any !td., the Ne2 India Assurance Co+#any !td., the Orienta'

Insurance Co+#any !td. and the United India Insurance Co+#any !td.

Nationa'iation 2as acco+#'ished in t2o stages initia''y the +anage+ent o"

the co+#anies 2as ta0en over by +eans o" an Ordinance, and 'ater, the o2nershi# too

2as ta0en by +eans o" a co+#rehensive bi''. 8o2ever, it 2as on'y in 19$%, !IC 2as

nationa'ised, 2ith the obective o" s#reading 'i"e insurance +uch +ore 2ide'y and in

#articu'ar to the rura' areas 2ith a vie2 to reach a'' insurab'e #ersons in the country,

#roviding the+ ade=uate "inancia' cover at a reasonab'e cost.And as o" *44), !IC is

India5s 'eading Insurance co+#any, 2ith *444 branches, 2hich #robab'y is the

highest nu+ber o" branches across India insurance sector.

!ibera'iation o" Indian Insurance:

199F: Insurance sector invited #rivate #artici#ation to induce a s#irit o"

co+#etition a+ongst the various insurers and to #rovide a choice to the consu+ers.

199):Insurance regu'ator IRDA 2as set u# as there "e't the need:

a- To set u# an inde#endent regu'atory body, that #rovides greater autono+y

to insurance co+#anies in order to i+#rove their #er"or+ance,

b- To enab'e the+ to act as inde#endent co+#anies 2ith econo+ic +otives.

c- To #rotect the interest o" ho'ders o" insurance #o'icies.

d- To A+end the Insurance Act, 193, the !i"e Insurance Cor#oration Act,

19$% and the &enera' insurance (usiness Nationa'iation- Act, 19)*

39


39/64

e- To end the +ono#o'y o" the !i"e Insurance Cor#oration o" India and

&enera' Insurance Cor#oration and its subsidiaries.

In the "irst year o" insurance +ar0et 'ibera'iation *441- as +uch as 1%

#rivate sector co+#anies inc'uding oint ventures 2ith 'eading "oreign insurance

co+#anies have entered the Indian insurance sector. O" this, 14 2ere under the 'i"e

insurance category and si< under genera' insurance. Thus in a'' there are *$ #'ayers

1*'i"e insurance and 13genera' insurance- in the Indian insurance industry ti'' date.

Indian Insurance in *1st Century:

*444:IRDA starts giving 'icenses to #rivate insurers: ICICI #rudentia' and

8D?C >tandard !i"e insurance "irst #rivate insurers to se'' a #o'icy

*441:Roya' >undara+ A''iance "irst non 'i"e insurer to se'' a #o'icy

*44*: (an0s a''o2ed tose'' insurance #'ans. As T6As enter the scene,

insurers start setting non'i"e c'ai+s in the cash'ess +ode

*44): ?irst On'ine Insurance #orta', 222.insurance+a''.in set u# by an

Indian Insurance (ro0er, (onsai Insurance (ro0ing 6vt !td.

The &overn+ent o" India 'ibera'ised the insurance sector in arch *444 2ith

the #assage o" the Insurance Regu'atory and Deve'o#+ent Authority IRDA- (i'',

40


40/64

'i"ting a'' entry restrictions "or #rivate #'ayers and a''o2ing "oreign #'ayers to enter

the +ar0et 2ith so+e 'i+its on direct "oreign o2nershi#.

ini+u+ ca#ita' re=uire+ent "or direct 'i"e and Non'i"e Insurance co+#any

is INR1444 +i''ion and that "or reinsurance co+#any is INR *444 +i''ion. In the

*44F4$ budgets, the &overn+ent #ro#osed "or increasing the "oreign e=uity sta0e to

F97, this is yet to be e""ected. Under the current guide'ines, there is a *% #ercent

e=uity ca# "or "oreign #artners in direct insurance and reinsurance Co+#any. /or'd

(an0 cono+ic Revie2*444-.

On'ine Insurance in India:

Internet access in India has doub'ed every year over the 'ast "ive years and

"orecasts #redict this gro2th to =uadru#'e every year over the ne


41/64

ne.co+,222.insurance#andit.co+.Recent'y,Co+#are M Choose M (uy #orta's 'i0e

(onsai Insurance (ro0er5s 222.insurance+a''.in, have been deve'o#ed "or #roviding

co+#arison o" di""erent ty#es o" insurance #o'icies, their #re+iu+s and their #urchase

on'ine. The #o'icy detai's are stored digita''y and a'' transactions are +ade over secure

channe's. insurance o""ers a ne2 gate2ay o" inco+es and #rovides additiona'

+ar0et #enetration, 2hich is a need o" an hour "or Indian Insurance >eg+ent.

The ?irst overs in Distribution o" Insurance goes to 3 co+#anies in India :

1. ICICI !o+bard &enera' Insurance

*. (aa A''ian &enera' Insurance

3. 222.insurance+a''.in Created by (onsai Insurance (ro0ing.-

INH>TNT O? ICICI 6RUDNTIA! !I? IN T8 @AR

19): In Crores-

42


42/64

T@6> O? INH>TNT 313)6RCNTA& OUT

O? TOTA!

1. Centra' &ovt. >ec. F%)$ 39.%4

*. >tate &ovt. J other &ovt.

&uaranteed ar0etab'e >ec.

1%3 1F.*%

3. 'ectricity >(s- *%43 **.4$

F. 8ousing 1)* 1$.%

$. /ater >u##'y J >e2erage

un S.6-

)1 %.4

%. >tate Road Trans#ort Cor#n. 14 1.$*

). !oans to Industria' st. 3) 4.31

. !oans to >ugar Coo# 3) 4.31

9. Deve'o#+ent Authority 1 4.41

14. Road2ays, 6ort, Rai'2ays

11. 6o2er &eneration

6vt. >ector-

1*. unici#a' Co#.

Tota' : 114% 144.44

ANA!@>I> O? INH>TNT> IN 19):

43


43/64

1- aor #ortion o" the invest+ent o" the ICICI 6RU!I? 2ere ca#tured

by the state &ovt. securities.

*- !i"e Insurance Cor#oration concentrated on'y in the ICICI 6RU!I?

sector and the 6rivate sector 2as co+#'ete'y neg'ected.

3- $3.%7 1*- o" ICICI 6RU!I?5> Invest+ents are invested in the

securities.

F- F$.$*7 3F$%9- o" ICICI 6RU!I? Invest+ents 2ere invested

in the Deve'o#+ent o" In"rastructure o" the Country.

$- 4.%*7 )- 2as given as 'oans "or the gro2th o" Industries in India.

ICICI 6RU!I? INH>TNT> IN T8 @AR 199)In Crores-

T@6> O? INH>TNT 3139)

6RCNTA&

OUT O? TOTA!

1. Centra' &ovt. >ec. 3)334 $F.F



94% 13.4

3. 'ectricity >(s- *1F 1*.4)

F. 8ousing 149%) 1%.14


un S.6-

*4* 3.44

44


44/64

%. >tate Road Trans#ort Cor#n. $F4 4.)9

). !oans to Industria' st. F$ 4.4%

. !oans to >ugar Coo# 3) 4.4$


14. Road2ays, 6ort, Rai'2ays 11. 6o2er &eneration

6vt. >ector-

1*. unici#a' Co#.

Tota' : %4% 144.44

ANA!@>I> O? INH>TNT> IN 199):

1- This year ICICI 6RU!I?5> invest+ent in centra' &ovt. securities

increased drastica''y.

*- ICICI 6RU!I?5> invest+ents in centra' &ovt. securities increased

"ro+ 39.%7 $F.F7.

45


45/64

3- (ut there 2as a dec'ine in the invest+ent in >tate &ovt. and other

&ovt. securities it reduced " ro+ 1F.*%7 13.47.

F- 8o2 ever there 2as an increase in the net invest+ent in securities, it

increased by *%.147 2hen co+#ared to 19)- and at the end 2as %).9*7 o"

the tota' invest+ents.

$- Invest+ent in the deve'o#+ent o" in"rastructure 2as 31.9)7 o" the

tota' 2hen co+#ared to F$.$*7 in the #revious year that +eans there 2as a dec'ine

o" *9.))7 2hen co+#ared to 19).

%- This year 'oans to industria' estateBs and sugar coo# increased "ro+

+argina' 4.%*7 to 1.17 and sho2ed an increase o" )).F*7

)- On the 2ho'e the ICICI 6RU!I? sho2ed a very good gro2th rate in

their invest+ents in 19) their tota' invest+ents 2ere 114% crores but in this year

it sho2ed an increase o" F)%.$$7

- ICICI 6RU!I?Bs invest+ents increased by a'+ost $ ti+es in 14 years

2hich sho2ed a great increase o" $47 #er year on an average.

9- !oo0ing at the s#eed gro2th o" ICICI 6RU!I? O? INDIA it 2as

=uite c'ear "or every one that ICICI 6RU!I? O? INDIA 2as heading to2ards

beco+ing the 2or'd5s no 1 insurance co+#any.

14- !oo0ing at current year the e


46/64

INH>TNT O? ICICI 6RU!I? IN T8 @AR *44FIn Crores-

T@6> O? INH>TNT 3134F6RCNTA& OUT

O? TOTA!

1. Centra' &ovt. >ec. F$)% $%.%



14F)1 1*.9F

3. 'ectricity >(s- 91$3 11.31

F. 8ousing 1**F* 1$.1*


un S.6-

**%F *.

%. >tate Road Trans#ort Cor#n. $$1 4.%

). !oans to Industria' st. F$ 4.4$

. !oans to >ugar Coo# 3) 4.4F


14. Road2ays, 6ort, Rai'2ays *$ 4.43


6vt. >ector-

*)% 4.3F

47


47/64

1*. unici#a' Co#. F 4.4F9

Tota' : 49F$ 144.44

ANA!@>I> O? INH>TNT> IN *44F:

1- !i0e the #revious year this year a'so the +aor #ortion o" the

invest+ents 2as ca#tured by centra' govern+ent securities.

*- There 2as an increase in invest+ent in centra' &ovt. securities "ro+

$F.F7 $%.%, it sho2ed an Increase o" 3.3$7

3- ?o''o2ing the trend o" #ast 11 years this year a'so the net invest+ent

in securities increased, it 2as $F.F in the #revious year and rose to $%.% in this

year, sho2ing an increase o" *.$7.

F- Invest+ent in the deve'o#+ent o" in"rastructure at the beginning 2as

F$.$*7 and at the end 2as *9.9*7, 2hich sho2ed a dec'ine o" 3F.*)7 2hich

2as =uite considerab'e

48


48/64

$- !oans to industries 2as stab'e at 4.97 o" the tota' invest+ents.

%- There is an i+#ortant #oint to be seen in this year as this is the "irst

ti+e ICICI 6RU!I? started to invest in #o2er generation o" #rivate sector.

)- It is "ro+ this year ICICI 6RU!I? started direct'y investing in the

#rivate sector.

- The invest+ent in the #o2er generation o" #rivate sector 2as 4.3F7

o" the tota' invest+ent.

9- ?ro+ this year ICICI 6RU!I? started investing in deve'o#ing

trans#ort i.e., rai'2ays, #orts, road2ays. The #ercentage o" invest+ent in this 2as

4.437 2hich 2as =uite +argina'.

14- ICICI 6RU!I? started to he'# the +unici#a' counci's and

cor#orations "ro+ this year and the #ercentage o" invest+ent stood at 4.44F7 and

the a+ount invested 2as F crores.

49


49/64

INH>TNT O? ICICI 6RU!I? IN T8 @AR *44$In Crores-

T@6> O? INH>TNT 313*44$6RCNTA& OUT

O? TOTA!

1. Centra' &ovt. >ec. $%1$ $).33



1*9* 13.19

3. 'ectricity >(s- 14$91 14.1

F. 8ousing 1F*4) 1F.$4


un S.6-

*$4 *.$%

%. >tate Road Trans#ort Cor#n. %)1 4.%

). !oans to Industria' st. F$ 4.4$



14. Road2ays, 6ort, Rai'2ays *$ 4.43


6vt. >ector-

41 4.*

1*. unici#a' Co#. F 4.44F

Tota' : 9443 144.44

50


50/64

ANA!@>I> O? INH>TNT> IN*44$:

1- Tota' net invest+ent in securities 2as $%.%7 2hich raised to )4.$*7

sho2ing a gro2th rate o" *F.F17.

*- A tota' invest+ent in deve'o#+ent activity in this year 2as Rs.*)9)

crores 2hich 2as *.$F7o" the tota' invest+ent, re+aining a'+ost stab'e 2ho

co+#ared to *9.9*7 in the #revious year.

3- 6ercentage o" invest+ents granted as 'oan has dec'ined by *).37 and

stood at 4.47 o" the tota' invest+ent.

F- Direct invest+ent in #rivate sector has raised by 1F1.1)7 and 2as

4.*7 o" the tota' 2hen co+#ared to 4.3F7 in the #revious year.

51


51/64

INH>TNT O? ICICI 6RU!I? IN T8 @AR *44%In Crores-

T@6> O? INH>TNT 3134%6RCNTA& OUT

O? TOTA!

1. Centra' &ovt. >ec. )4$33 $9.3



1F1$% 1*.41

3. 'ectricity >(s- 11931 14.1*

F. 8ousing 1$$ 13.**


un S.6-

*99) *.$F

%. >tate Road Trans#ort Cor#n. )3% 4.%*

). !oans to Industria' st. F$ 4.4F



14. Road2ays, 6ort, Rai'2ays $ 4.4)


6vt. >ector-

1F) 1.*$

1*. unici#a' Co#. F 4.443

Tota' : 11) 144.44

52


52/64

ANA!@>I> O? INH>TNT> IN *44%:

1- Tota' net invest+ent in securities 2as )4.$*7 2hich raised to )1.F7

sho2ing a gro2th rate o" 1.)7, but the gro2th rate dec'ined by 9*.37.

*- Tota' invest+ents in deve'o#+ent activity in this year 2ere Rs.311$4

crores 2hich 2as *%.F*7 o" the tota' invest+ent, re+aining a'+ost near 2hen

co+#ared to *.$F7 in the #revious year.

3- 6ercentage o" invest+ents granted as 'oan has dec'ined by 1*.$7 and

stood at 4.4)7 o" the tota' invest+ent.

F- Direct invest+ent in #rivate sector has raised by F$7 and 2as 1.*$7

o" the tota' 2hen co+#ared to 4.*7 in the #revious year.

53


53/64

INH>TNT O? ICICI 6RU!I? IN T8 @AR *44)In Crores-

T@6> O? INH>TNT 3134)6RCNTA& OUT

O? TOTA!

1. Centra' &ovt. >ec. $11 %4.



1))) 1*.)

3. 'ectricity >(s- 1*F4* .%

F. 8ousing 1)99 1*.%


un S.6-

3%$) *.%1

%. >tate Road Trans#ort Cor#n. )F 4.$%

). !oans to Industria' st. F$ 4.43



14. Road2ays, 6ort, Rai'2ays 3*$ 4.*3


6vt. >ector-

1%1$ 1.1$

1*. unici#a' Co#. F 4.443

Tota' : 1399*% 144.44

54


54/64

ANA!@>I> O? INH>TNT> IN *44):

1- Tota' net invest+ent in securities 2as )1.F7 2hich raised to )3.%$7

sho2ing a gro2th rate o" *.$*7, sho2ing a good increase 2hen co+#ared to the

#revious year.

*- Tota' invest+ents in deve'o#+ent activities in this year 2ere Rs.3FF*

Crores 2hich 2as *F.947 o" the tota' invest+ent, sho2ing a dec'ine o" %.9$7 2hen

co+#ared to *%.)%7 in the #revious year.

3- 6ercentage o" invest+ents granted as 'oan has dec'ined by 1F.37 and

stood at 4.4%7 o" the tota' invest+ent.

F- Direct invest+ent in #rivate sector has decreased by 7 and 2as

1.1$7 o" the tota' 2hen co+#ared to 1.*$7 in the #revious year.

55


55/64

INH>TNT O? ICICI 6RU!I? IN T8 @AR *414In Crores-

T@6> O? INH>TNT 313146RCNTA& OUT

O? TOTA!

1. Centra' &ovt. >ec. 14993 %3.F1



*1F%3 1*.3

3. 'ectricity >(s- 13FF) ).)%

F. 8ousing 194$F 14.99


un S.6-

F444 *.31

%. >tate Road Trans#ort Cor#n. 93 4.$*

). !oans to Industria' st. F$ 4.43

. !oans to >ugar Coo# 3) 4.4*


14. Road2ays, 6ort, Rai'2ays %1 4.39


6vt. >ector-

3)9) *.19

1*. unici#a' Co#. 1F 4.44

Tota' : 1)33)4 144.44

56


56/64

ANA!@>I> O? INH>TNT> IN*414:

1- ven this year invest+ent in the centra' &ovt. securities

increased 'i0e the #ast trend, it increased by F.1$7 and stood at %3.F17

out o" the tota' invest+ents.

*- The tota' net invest+ents in securities stood at )$.)97 i.e.,

+ore than #ercentage o" the tota' invest+ents, shoeing a gro2th o"

*.97.

3- Tota' invest+ent in the deve'o#+ent o" in"rastructure

Rs.3)39$ crores, 2hich is *1.$%7 o" the tota' invest+ent.

F- Invest+ent in the #rivate sector 2as *.197 o" the tota'

invest+ent in *44, sho2ing a gro2th rate o" 94.F37.

5) There is an i+#ortant #oint to be noted that "ro+ #ast F

years ICICI 6RU!I? o" India 2as investing F crores in the unici#a'

Cor#oration but "ro+ this year this a+ount increased to 1F rores.

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invest+ent in deve'o#+ent authority re+ains constant "or the 2ho'e

#eriod.

NH>TNT O? ICICI 6RU!I? IN T8 @AR *411In Crores-

T@6> O? INH>TNT 313116RCNTA& OUT

O? TOTA!

1. Centra' &ovt. >ec. 13)*)% %F.34



*9 13.$

3. 'ectricity >(s- 1F$4 %.4F. 8ousing 199FF 9.3F


un S.6-

FF*4 *.4)

%. >tate Road Trans#ort Cor#n. 13$ 4.%F

). !oans to Industria' st. F$ 4.4*

. !oans to >ugar Coo# 3) 4.4*

9. Deve'o#+ent Authority 1 4.444$

14. Road2ays, 6ort, Rai'2ays )1 4.3)11. 6o2er &eneration

6vt. >ector-

%14$ *.94

1*. unici#a' Co#. 1F 4.41

Tota' : *13F)) 144.44

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ANA!@>I> O? INH>TNT> IN *411:

1- Invest+ent in centra' &ovt. securities goes u# even "urther

"ro+ %3.F17 %F.37, sho2ing gro2th rate o" 1.F7

*- Net invest+ent in securities increased )$.)97 ).7,

sho2ing a net increase o" F.47

3- Invest+ent in the deve'o#+ent o" in"rastructure 2as

*1.$%7, 2hich reduced to 1.F7.

F- !oans granted reduced by *47 and stood at 4.4F7.

$- Direct invest+ent in 6vt. >ector 2as *.197 in the

#revious year and raised by 3*.F*7 and stood at *.97 o" the tota'

invest+ent.

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&RA68 >8O/IN& NT INH>TNT> @AR@

60


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?INDIN&>

1- ICICI 6RUDNTIA! !I? has invested Rs.F%)$ crores in the year

19) 2hich is 39.%47 o" its #ro"its in the centra' govt. sector and the invest+ent has

increased to 3)334 crores in the ne


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>U&&>TION>

1- ICICI 6RU!I? is a'so investing a certain #art o" its #ro"its in the state

road trans#ort cor#oration and #o2er generation 6vt. >ector- but there is a stab'e

gro2th in these invest+ents.

*- In the year *44$ the tota' invest+ent in securities has increased to

)4.$*7, 2hich sho2s a tre+endous gro2th rate o" *F.F*7.

3- ICICI 6RU!I? has decreased giving 'oans, and the #ercentage

decrease by *).37.

F- The invest+ents in the #rivate sector a'so raised drastica''y "ro+ the

year *44F*44$, 2hich is 1F1.1)7.

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CONC!U>ION>

1- ICICI 6RUDNTIA! is suggested to e


63/64

(I(!IO&RA68@

(oo0s

>ecurities Ana'ysis and 6ort"o'io anage+ent by 6rasanna

chandra. Tata c&ra2 8i'' #roduction-

>ecurities Ana'ysis and 6ort"o'io anage+ent by

H.A.Avadhani. 8i+a'aya 6ub'ishing 8ouse-

The Indian ?inancia' >yste+ by (harat H. 6atha0.6earson

ducation-

?inancia' anage+ent by .@. han J 6.. Gain Tata c&ra28i''

6ub'ishing Co. !td.-

?inancia' anage+ent by Dr .>.N. ahesh2ari.>u'tan Chand J

>ons-

/ebsites

222.icici#ru'i"e.co+

222.Irdaon'ine.org

222.+oneycontro'.co+

64
http://www.irdaonline.org/http://www.moneycontrol.com/http://www.irdaonline.org/http://www.moneycontrol.com/


64/64

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