INTRODUCTION:

ABN AMRO

• is a prominent international bank with origins going back to 1824

• conducts banking, fund management, insurance and leasing business

• ranks eighth in Europe and seventeenth in the world based on tier 1 capital

• has over 3,000 branches in 66 countries and territories, a staff of about 105,000

full time equivalents and total assets of EUR 556 billion (as of year-end 2002)

• is listed on, among other exchanges, the Euro next Amsterdam, London and New

York Stock Exchanges.

Their goal is to create value for the clients. They strictly follow a relationship

approach, which keeps clients’ requirements clearly in focus and provides

excellent service through the professionalism and motivation of their employees

across the globe. Adhering to the principles of Managing for Value – allocating

resources to where they earn the best long-term returns and measuring the results –

and exploiting synergies between the bank’s businesses maximizes economic value

for their shareholders. The ABN AMRO Values and Business Principles are the

framework within which they conduct all their business.

Leadership in their chosen markets is critical to their long-term success as well.

They have three principal client segments: Consumer & Commercial Clients,

Wholesale Clients and Private Clients & Asset Management. Within ABN

AMRO’s organizational structure, these are also core global Strategic Business

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Units. They strive to maximize the value of each of these businesses and the

synergies between them:

• Consumer & Commercial Clients – for individuals and small to medium-sized

enterprises requiring day-to-day banking. They serve approximately 15 million

clients, mainly through ABN AMRO’s major presence in three home markets: the

US Midwest, the Netherlands and Brazil. The Business Unit New Growth Markets

is expanding consumer and commercial operations in selected countries.

• Wholesale Clients – for major international corporations and institutions. This is

one of the largest Europe-based wholesale banking businesses with around 10,000

clients, 20,200 employees and operations in over 45 countries.

• Private Clients & Asset Management – for high net-worth individuals and

institutional investors. Rapidly growing, with Assets under Management of EUR

150 billion, Assets under Administration of EUR 96 billion and strong positions in

several markets.

With assets over US $504 billion and an ABN AMRO credit rating, ABN AMRO

Bank ranks among the top 10 banks in the world in size and strength. Their

international network comprises 3,568 branches and offices in over 320 cities and

76 countries and territories, with over 100,000 highly qualified staff. As a global

bank, they can handle the most complicated cross-border transactions, yet they also

understand the subtleties of local markets.

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ABN AMRO in India

ABN AMRO Bank (India) has an eight-decade long experience of the Indian

business scenario.

Traditionally known as a strong "diamond-financing bank", it has turned into a

bank providing a comprehensive range of services with a difference.

ABN AMRO (India) has branches in Mumbai, Delhi, Chennai, Kolkata, Pune,

Baroda, Hyderabad , Bangalore and Noida with each branch servicing multi-

product relationships.

Consumer banking offers a suite of products for the personal financial needs

offered through various channels including ATMs, Doorstep Banking and Net

Banking.

ABN AMRO Bank in India enjoys a strong image as a corporate bank with

comprehensive Global Transaction Services. Its investment banking services are

delivered through ABN AMRO (India) Corporate Finance and the Global

Financial Market Teams which, strive to maintain the permanent position that they

have built in the marketplace.

ABN AMRO Bank has launched its Private Banking Services in India offering a

comprehensive range of high quality Portfolio Advisory Services along with a

comprehensive transaction execution platform, complemented by personalized

Banking and custodial services.

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ABN AMRO Bank rated as the No.1 bank in India

ABN AMRO has been rated as the number one Bank in India by "Business

Today", one of the more respected Business Magazines in the country, together

with the reputed Consulting Firm, KPMG.

Why did ABN AMRO win the coveted position over 78 other top rated banks in

the country?

Consistent performance across the parameters; ABN AMRO Bank figures among

the top five in terms of asset quality, earnings quality, operations and productivity.

Net Non-Performing Asset growth rate among the lowest, reflecting prudent

lending. This is extremely noteworthy against the backdrop of the entire banking

industry, which witnessed a relative growth in net NPA in the past.

High in operational efficiency: ABN AMRO Bank has been scaling up operations

with minimal incremental costs and its cost of average interest bearing funds is

among the lowest in the industry.

High on productivity: The Bank has managed to achieve a consistent

improvement in operating profit per branch and per employee.

ABN AMRO is a well oiled banking machine that has grown profits, built quality

assets, entered new business areas, invested in technology and kept an eagle eye

on the all important cost to revenues ratio. The strength of this Bank is the talent

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of its people who have worked together and put in brilliant performances to take it

through many significant milestones.

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INTRODUCTION

HDFC was incorporated in 1977 with the primary objective of meeting a social

need – that of promoting home ownership by providing long-term finance to

households for their housing needs. HDFC was promoted with an initial share

capital of Rs. 100 million.

Against the milieu of rapid urbanization and a changing socio-economic scenario,

the demand for housing has grown explosively. The importance of the housing

sector in the economy can be illustrated by a few key statistics. According to the

National Building Organization (NBO), the total demand for housing is estimated

at 2 million units per year and the total housing shortfall is estimated to be 19.4

million units, of which 12.76 million units is from rural areas and 6.64 million

units from urban areas. The housing industry is the second largest employment

generator in the country. It is estimated that the budgeted 2 million units would

lead to the creation of an additional 10 million man-years of direct employment

and another 15 million man-years of indirect employment.

Having identified housing as a priority area in the Ninth Five Year Plan (1997-

2002), the National Housing Policy has envisaged an investment target of Rs.

1,500 billion for this sector. In order to achieve this investment target, the

Government needs to make low cost funds easily available and enforce legal and

regulatory reforms.

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BUSINESS OBJECTIVES:

The primary objective of HDFC is to enhance residential housing stock in the

country through the provision of housing finance in a systematic and professional

manner, and to promote home ownership. Another objective is to increase the flow

of resources to the housing sector by integrating the housing finance sector with

the overall domestic financial markets..

ORGANIZATIONAL GOALS:

HDFC’s main goals are to:

a) develop close relationships with individual households,

b) maintain its position as the premier housing finance institution in the

country,

c) transform ideas into viable and creative solutions,

d) provide consistently high returns to shareholders, and

e) to grow through diversification by leveraging off the existing client base.

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INTRODUCTION

ICICI Bank is India's second-largest bank with total assets of about Rs.112,024

crore and a network of about 450 branches and offices and about 1750 ATMs.

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

corporate and retail customers through a variety of delivery channels and through

its specialised subsidiaries and affiliates in the areas of investment banking, life

and non-life insurance, venture capital, asset management and information

technology. ICICI Bank's equity shares are listed in India on stock exchanges at

Chennai, Delhi, Kolkata and Vadodara, the Stock Exchange, Mumbai and the

National Stock Exchange of India Limited and its American Depositary Receipts

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

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

institution, and was its wholly-owned subsidiary. ICICI's shareholding in ICICI

Bank was reduced to 46% through a public offering of shares in India in fiscal

1998, an equity offering in the form of ADRs listed on the NYSE in fiscal 2000,

ICICI Bank's acquisition of Bank of Madura Limited in an all-stock amalgamation

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in fiscal 2001, and secondary market sales by ICICI to institutional investors in

fiscal 2001 and fiscal 2002. ICICI was formed in 1955 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, and the move

towards universal banking, the managements of ICICI and ICICI Bank formed the

view that the merger of ICICI with ICICI Bank would be the optimal strategic

alternative for both entities, and would create the optimal legal structure for the

ICICI group's universal banking strategy. The merger would enhance value for

ICICI shareholders through the merged entity's access to low-cost deposits, greater

opportunities for earning fee-based income and the ability to participate in the

payments system and provide transaction-banking services. The merger would

enhance value for ICICI Bank shareholders through a large capital base and scale

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of operations, seamless access to ICICI's strong corporate relationships built up

over five decades, entry into new business segments, higher market share in

various business segments, particularly fee-based services, and access to the vast

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

of ICICI and ICICI Bank approved the merger of ICICI and two of its wholly-

owned retail 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 Ahmedabad 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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FINANCE-WHAT IT IS

Finance is an evolutionary concept having bearance with changes in economic

conditions and organizational forms of business units. There have been

different views in this regard.

The Oxford Dictionary explains it as “the management of money”.

While the Webster’s views it as the science or study of management of funds.

On the whole finance is a body of facts, principles and theories dealing with

raising, using and controlling of funds.

CORPORATE FINANCE - meaning & definition:

Corporate Finance can be defined as the process of raising, providing and

administering of money/funds to be used in a corporate enterprise.

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Wheeler defines Corporate Finance as “the business activity, which is

concerned with the acquisition and conservation of capital in meeting the

financial needs and overall objectives of business enterprise.”

According to Guthman & Dougall “Business finance can be broadly defined

as the activity concerned with the planning, raising, controlling and

administering the funds used in the business.”

Therefore, the scope of Corporate Finance is so wide as to cover the financial

activities of a business enterprise right from its inception to its growth and

expansion and in some cases to its winding up also.

IMPORTANCE:

The knowledge of the discipline of Corporate Finance is important not only to

the practicing managers, but also to others who deal with a corporate

enterprise, such as investors, lenders, bankers, creditors etc as there is always a

scope for the management to manipulate and ‘window dress’ the financial

statements.

Investors

The investors need to know the basics of Corporate Finance to select the best

option of investment, with high and regular returns.

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Management

Management primarily functions towards the maximization of the growth of

the business and this can be materialized if the management possesses sound

knowledge of the mechanism of Corporate Finance etc..

FINANCE FUNCTION:

Finance Function is the most important of all business functions. It remains a

focus of all activities. It is not possible to substitute or eliminate this function

because finance forms the backbone of every business. The need for money is

continuous. It starts with the setting up of an enterprise and remains at all

times. The development and expansion of business rather needs more

commitment for funds. The sources of funds will be selected in relation to the

implications attached with them. The money raised demands repayment and

hence the best possible utilization is necessary. The management should have

an idea of using the money profitably. The inflows and outflows of funds

should be properly matched.

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SCOPE OF FINANCE FUNCTION:

Finance Function

Reccuring Functions Non Recurring functions Advisory Functions

Estimating Selecting Liquidity ProperFinancial Source of Maintenance Use of

Requirements Finance Surpluses

Deciding Selecting Implementing Routine Capital Pattern of Financial Functions Structure Investment Controls Recording And Reporting of Accounting Information

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CORPORATE GOVERNANCE

As defined by the Institute of Chartered Accountants of India:

“Corporate Governance system is its embedded confirmation of values, ethics

and appropriate and expected behaviour which provide the coordinates for the

organisation’s performance of its role as a societal entity, in all its aspects. A

code of Corporate Governance makes explicit both the auditable and desirable

aspects of such a configuration.”

Objective:

The fundamental objective of Corporate Governance is enhancement in the

value of longtime shareholder while at the same time protecting the interest of

other stakeholders. Corporate Governance includes strategic planning and

leadership and organization design.

The Companies Act, 1956 is the main instrument for improving Corporate

Governance. Various new amendments have been made in the Act, at different

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times for better survival of organisations in the corporate world. The recent and

most important ones are:

SEC 217 : Director’s Responsibility Statement

This Section says that in order to increase the accountability of the Directors

towards the functioning of an organization, a Director’s Responsibility

Statement shall be included in the Report of the Board of Directors (BOD) in

the Annual Report of the company.

SEC 292A : Audit Committees

Every company having a paid-up share capital of Rs. 5 crores and above

shall have an Audit Committee, with 3 Directors, two-thirds of whom will

be independent Directors.

SEC 383A : Compliance Certification

Companies with a paid-up share capital of Rs. 10 lakhs and above without a

full time Secretary, shall file with the Registrar of companies, a Compliance

Certificate from a Secretary in whole time practice and a copy of it shall be

attached with the Directors’ Report.

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In addition to that, there were a few more amendments to the listing

agreements under Clause 49 of the Act, based on the recommendations of

the Committee on Corporate Governance constituted by the Securities

Exchange Board of India(SEBI).

BOARD OF DIRECTORS: The Company shall have at least 50% non-

executive Directors and the rest, executive Directors.

Audit Committees: The Company should have an independent Audit

Committee with an independent Director as Chairman.

Remuneration of Directors: There should be adequate disclosure of the

remuneration package to Directors.

Board meetings and procedures: There should be atleast 4 Board meetings

after every possible 4 months and so on and so forth.

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ABN AMRO’s CORPORATE GOVERNANCE INCLUDES:

“We are continuously enhancing our corporate governance to ensure the

highest standards of transparency and accountability.”

Corporate governance ABN AMRO views corporate governance as the way it

conducts relations between shareholders, Supervisory Board, Managing Board and

employees. For ABN AMRO, good corporate governance is critical to their

strategic goal of creating sustainable long-term value. Sound corporate governance

is vital for their stakeholders – shareholders, clients, employees, suppliers and

society at large.

In recent years, corporate governance has taken center stage in public debate about

the nature and behaviour of companies. ABN AMRO has closely followed and

participated in national and international initiatives to improve corporate

governance. They are committed to implementing these initiatives over and above

merely meeting legal obligations because they believe that complying with the

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requirements of the global business community is in the interests of the bank and

its shareholders.

ABN AMRO is characterized by a two-tier system of corporate governance,

comprising one body composed solely of non-executive directors (the Supervisory

Board) and one body composed solely of management (the Managing Board).

Each Board must be independent from the other – no overlapping membership is

permitted. The Supervisory Board has the legal duty of supervising the conduct

and policies of the Managing Board, as well as the company’s general affairs. In

addition, the Supervisory Board shall assist the Managing Board with advice. In

performing their duties, members of the Supervisory Board must consider the

interests of the company and its business rather than the interests of any particular

stakeholder. Members of the Supervisory Board are not on the company’s payroll,

but receive an annual remuneration as a member of the board. The Audit

Committee and the Nomination & compensation Committee are sub-committees of

the Supervisory Board. The Managing Board makes policy and manages the

company day-to-day.

Public debate about the nature and behaviour of the companies has paid more

attention in recent years to shareholders as stakeholders. New emphasis has been

placed on the concept of shareholder value and on measures, which will reinforce

the involvement, and influence of shareholders. The underlying belief is that

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focusing on sustainable long-term value creation for shareholders also implies a

proper balance with, and attention to, the needs of other stakeholders. ABN AMRO

has been in the forefront of these developments and in 2000 they announced that

they would benchmark their performance in creating shareholder value against that

of a published list of peer banks. Major business initiatives and restructurings have

been undertaken with this goal in mind.

ABN AMRO is a Securities and Exchange Commission registered company with a

listing on the New York Stock Exchange. They are therefore subject to US

securities laws, including the Sarbanes-Oxley Act, which was passed into law in

2002 to restore investor confidence in the wake of several major corporate scandals

and collapses. The Act is wide ranging and includes provisions affecting

disclosures by public companies and corporate governance. The integrity of

management and auditors is at the heart of the Sarbanes-Oxley Act. The Act

requires listed companies to have an audit committee composed of independent

directors. It also promotes auditor independence by prohibiting auditors from

providing certain non-audit services whilst conducting audits. ABN AMRO’s

existing oversight and corporate governance practices in many respects fully

honour the spirit and requirements of the Sarbanes-Oxley Act reforms. ABN

AMRO has long had an Audit Committee in place, which it believes is

independent and intends, as the Sarbanes-Oxley Act requirements come into force,

to maintain this independence. ABN AMRO’s Managing Board is committed to

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implementing measures, which will promote investor confidence and market

integrity. In response to the Sarbanes-OxleyAct, ABN AMRO has instituted a

Disclosure Committee that formalizes the tasks and disciplines already responsible

for ensuring the accuracy and completeness of information disclosed to the market.

The members of the Disclosure Committee include the Principal Accounting

Officer (Chairman), the Head of Group Legal &Compliance, the Head of Investor

Relations, the Head of Group Audit, the Head of Group Risk Management

Reporting and, as needed, persons from other parts of the company. They are

committed to complying with the law and regulations in all countries in which the

bank operates. Upon enactment of new laws and regulations, such as those

resulting from the Sarbanes-Oxley Act, the bank will adjust its corporate

governance to ensure full compliance.

ABN AMRO Bank N.V. has limited liability incorporated under the laws of the

Netherlands and subject to the Dutch Large Company Rules ABN AMRO takes

the view that it is essential to have a corporate governance structure which is

transparent and in accordance with international standards. The General Meeting of

Shareholders, is proposed to be held at the end of April every year.

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ABN AMRO is comprised of the following:

SUPERVISORY BOARB:

Candidates recommended for appointment or reappointment on the

Supervisory Board should meet the criteria of the profile. In order to

ensure the Supervisory Board’s independence, individuals employed by the

Holding or an affiliated company cannot be appointed as Supervisory

Board members.

The Chairman of the Supervisory Board should be notified if an

interest of a member of the Supervisory Board conflicts with that of the

company.

The Supervisory Board of ABN AMRO has 11 members.

The board appoints a Chairman and Vice Chairman, and the Audit

Committee and the Nomination & Compensation Committee, from among

its members.

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MANAGING BOARD:

The members of the Managing Board collectively manage the company

and are responsible for its performance. They are collectively and

individually accountable for all decisions taken by the Managing Board.

The management of the SBUs and the Corporate Centre is delegated to

Executive Committees. The Executive Committees consist of one or more

Managing Board members and one or more SEVPs and EVPs.

The Chairman of the Managing Board leads the Board in its overall

management of the company to achieve its performance goals and

ambitions.

The Chairman is the main point of liaison with the Supervisory Board.

The Chief Financial Officer is responsible for supporting the Chairman in

managing the company and for the financial affairs of the company.

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FINANCE FUNCTIONS

Finance Roles:

(a) Management of financial resources for meeting the bank’s programmes of

operations and capital expenditure including investment of surplus fund, if

any.

(b) Establish and maintain a system of financial scrutiny and internal checks

and render advice on financial matters including examination of feasibility

studies and detailed project reports.

(c) Carry out periodical / special studies with a view to control costs, reduce

expenditure, economy in administrative expenditure, improve efficiency

to maximize profitability of the company.

(d) Maintain the financial accounts, cost accounts and other relevant books

and records in accordance with the various statutory and other

requirements.

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(e) Advise on corporate cash planning, credit policy and pricing policies of

the organization.

(f) Ensuring that the company acts in all financial and accounting matters as

per approved policies.

Financial missions:

(a) To provide high quality financial staff support for decision-making and

control to all levels of management to enable the achievement of overall

corporate objectives and goals.

(b) To play a lead role in scanning the domestic and international financial

environment, formulation and implementation of all financial policies and

plans for different spans consistent with and conducive to the business

plans for expansion, diversification, and productivity.

(c) To maintain, review and update all relevant accounting records, systems

and procedures for discharging the fiduciary responsibilities and enabling

compliance with statutory obligations.

(d) To inculcate financial awareness, cost benefit attitudes and system

orientation in the entire organization.

(e) To develop the human resources, systems and techniques of finance for

continuing innovation and contribution towards corporate excellence.

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Financial Objectives and Goals:

(a) To ensure adequate returns on capital employed and maintain a reasonable

annual dividend on its equity capital.

(b) To ensure maximum economy in expenditure by inculcating cost

consciousness in all departments.

(c) To develop long term corporate plans to provide adequate growth of the

activities of the organization.

(d) To continue an effort in bringing reduction in the cost by means of

systematic cost control measures.

(e) To monitor capital expenditure to ensure completion within stipulated

time and cost.

(f) To ensure optimum utilization and efficient management of funds.

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ACCOUNTING POLICIES:

General

The financial statements have been prepared in conformity with generally accepted

accounting principles. Where necessary, the amounts reported in the financial

statements are based on estimates and assumptions. In addition, the annual report

includes an analysis of equity and results according to accounting principles

generally accepted in India. (GAAP).

Changes in accounting policies

The cost of pensions and other post-retirement benefits will be recognized in

accordance with the relevant Indian accounting standards. Under this method of

accounting, calculations may be based on long-term assumptions for both pension

commitments and the return on the invested capital of the pension fund, with

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variances between estimated and actual figures being spread over a large number

of years.

Basis for inclusion of financial instruments

A financial instrument is accounted for as an asset or liability from the time the

respective contractual rights or obligations accrue to the company. Whenever this

ceases to be the case, a financial instrument is no longer recognized in the balance

sheet. If ABN AMRO has the right on the grounds of legal or contractual

provisions and the intention to settle financial assets and liabilities net or

simultaneously, they are netted off in the balance sheet.

Basis of consolidation

The consolidated financial statements incorporate the assets, liabilities, revenues

and expenses of ABN AMRO Holding N.V., its subsidiaries and other group

companies that form an organizational and economic entity with it. Minority

interests in both equity and results of subsidiaries and other group companies are

stated separately.

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Currency translation

Assets and liabilities denominated in foreign currencies and financial instruments

hedging these assets and liabilities are translated into euros at the spot rates of

exchange prevailing at balance sheet date. Translation differences are taken to the

income statement. With the exception of capital investments in hyper-inflationary

countries, translation differences on capital investments in foreign branches,

subsidiaries and participating interests, including retained profit, are accounted for

in shareholders’ equity together with the results from related hedging instruments,

after allowing for taxation. Results on transactions denominated in foreign

currencies are translated at the rates prevailing at transaction date or, insofar as

accruals and deferrals are involved, on the last day of the month to which the

results relate.

Valuation and determination of results

Assets and liabilities are recorded at cost, less any allowance deemed necessary.

The effects of transactions and other events are recognized when they occur;

revenues and expenses are recognized in the year to which they relate.

Premiums and discounts are accounted for in prepayments and accrued income or

accruals and deferred income respectively, and are attributed to the accounting

periods throughout the remaining terms of the underlying items.

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Except for items forming part of the trading portfolio, interest-earning and interest-

bearing securities on which a large part or all of the interest receivable or payable

is settled on redemption are included at either purchase price or discounted value

on issue plus accrued interest.

Where financial instruments are used to hedge risks associated with designated

assets or liabilities, the valuation and determination of results on these instruments

are effected in accordance with the policies applied to the hedged items.

Gains or losses on the early termination of a hedge are recognized as assets or

liabilities and amortized over the remaining terms of the hedged positions. Where

financial instruments are used to hedge risks associated with designated assets or

liabilities and the hedged assets or liabilities are sold or terminated, such financial

instruments no longer qualify as hedges.

Where loan-related fees exceed initial expenses, the excess is accounted for as

interest in the period concerned. Acquisition commission paid by the life insurance

subsidiary to third parties and the banking operation are capitalized as initial

expenses and amortized.

Expenses involved in the issuance of ordinary and preference shares are charged to

shareholders’ equity.

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Loans

Loans are generally shown at the principal amount. Loans are classified as doubtful

as soon as there is any doubt about the borrower’s capacity to repay the principal.

The allowances for consumer loans portfolio is determined on a portfolio basis

with a specific provision for each product being determined by the size of the

portfolio and historical loss experience. The allowances are recognized in

provision for loan losses in the income statement.

Doubtful loans are not written off until it is clear that repayment of principal can be

ruled out.

The fund for general banking risks aims to cover general risks related to credits

and other banking activities. The related deferred tax assets are deducted from the

fund.

Trading activities

Securities held in the trading portfolios are stated at market value. Debentures of

ABN AMRO group companies, acquired as part of trading activities, are stated at

the lower of market value and purchase price. Foreign exchange contracts, stock,

bond, currency and other options, as well as interest rate contracts such as interest

rate swaps and forward rate agreements, are stated at market value. The aggregate

market value of these contracts is included in other assets or other liabilities. Gains

or losses resulting from the method of valuation described are recognized in the

income statement in results from financial transactions.

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Investments

Interest-earning securities (other than securities on which a large part or all of the

interest is settled on redemption) held in the investment portfolios are stated at

redemption value. Shares held in these portfolios are included at market value,

with changes in value, net of tax, reflected in shareholders’ equity. If the

revaluation reserve formed in this manner on a portfolio basis is insufficient to

absorb diminutions in value, they will be charged to the income statement in value

adjustments to financial fixed assets. Results on sales are credited to the income

statement in the year the investments are sold. Net capital gains on interest-bearing

securities realised prior to redemption date in connection with replacement

operations are recognized as interest over the remaining average portfolio duration.

Investments which are held under insurance contracts for the account and risk of

policyholders are carried at market value; changes in the value of these

investments are accounted for as other revenue (profits or losses of insurance

companies).

Shares as part of venture capital activities

Equity investments, i.e. shares acquired as part of venture capital activities, are

stated at purchase price or sustained lower market value. Changes in value are

reflected in the income statement.

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Participating Interest

Participating interests in whom ABN AMRO or one of its subsidiaries has a

significant influence on commercial and financial policy are stated at net asset

value determined inconformity with the policies applied in these financial

statements. In accordance with these policies, movements in net asset value are

recorded in shareholders’ equity, such as revaluations and goodwill, or in the

income statement. Tax payable on distributions is taken into account at the moment

of the decision to make a distribution. Goodwill arising from the acquisition of

participating interests is charged to shareholders’ equity. Other participating

interests, consisting principally of equity investments in companies in related lines

of business, are shown either at market value at balance sheet date. Movements in

the value of participating interests on which the bank does not exercise an

influence are recorded, net of tax, in shareholders’ equity.

If the revaluation reserve formed in this manner for each participating interest is

insufficient to absorb diminutions in value, such diminutions will be charged to the

income statement in value adjustments to financial fixed assets. Property and

equipment, Premises used in operations, including land, are stated at current value

based on replacement cost. These current values are estimated on a rolling basis by

external appraisers, whereby each year at least 10% of the bank’s buildings is

appraised. The value of larger fittings is estimated once every five years. Buildings

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and fixtures and fittings are fully depreciated by the straight-line, method over their

estimated useful life, with a maximum of fifty years. Movements in value, net of

tax, are credited or charged to Provisions, Pension or other retirement plans have

been established for the employees. Most of these plans are administered by

separate pension funds or third parties.

The obligations are regarded as own obligations of ABN AMRO, irrespective of

whether these are administered by a pension fund or in some other manner.

Viewed against this background, the nature and substance of the plans are decisive

for their treatment in the financial statements. In this respect, a distinction is made

between defined contribution plans and defined benefit plans.

Defined benefit plan pension obligations are calculated in accordance with the

projected unit credit method of actuarial cost allocation.

Under this method, the present value of pension and other employee benefit

obligations is determined on the basis of the number of active years of service up

to balance sheet date, the estimated salary scale at the time of the expected

retirement date and the market rate of interest on high quality corporate bonds.

To determine the pension costs, the expected return on the plan assets is included

in the calculation. Differences between the expected and actual return on the plan

assets, as well as actuarial changes, are only recorded in the income statement if

the total of these accumulated differences and changes exceeds a bandwidth of

10% of the largest of obligations under the plan or the fair value of the related plan

34

assets. The part that exceeds the bandwidth is taken to the income statement over

the members’ remaining years of service. Additions in defined benefit obligations

resulting from revised plans regarding prior service periods (past service cost) are

also not recognized immediately in the period these benefits are vested but taken to

the income statement over the members’ remaining years of service. Any

differences thus calculated between the pension costs and the contributions payable

are accounted for as provision or prepayments. If the accumulated benefit

obligation (the defined benefit obligation without considering future salary

increases) exceeds the fair value of the plan assets of the pension fund, an

additional liability (provision for pension obligations) may be required. This will

be the case if this excess is greater than the provision for pension obligations

already accounted for, taking into account the method described above. If an

additional provision for pension obligations is recognized, an equal amount, but

not to exceed the amount of unrecognized prior service cost, is recognized as an

intangible asset. Any amount not recognized as an intangible asset will be arged to

shareholders’ equity. Obligations relating to the early retirement of employees are

treated in this context as pension obligations.

Taxes

In determining the effective tax rate, all timing differences between pre-tax profit

determined on the basis of ABN AMRO accounting policies and the taxable

35

amount in accordance with tax legislation, are taken into account. Deferred tax

assets and liabilities are discounted to their present value on the basis of the net

interest. Deferred tax assets are accounted for only if there is sufficient assurance

about their collectibility. The addition to or withdrawal from the fund for general

banking risks is taken into account when determining the effective tax rate.

FINANCIAL ANALYSIS OF DIFFERENT ITEMS IN THE

BALANCE SHEET

1. Cash

This item includes legal tender and demand deposits with central banks in

countries in which the bank has a presence.

2. Short-dated government paper

This item includes securities issued by public authorities, such as treasury paper,

with original terms of two years or less, provided they can be refinanced with a

central bank.

36

3. Banks (assets)

This item includes receivables, including professional securities transactions, from

credit institutions, central banks and multilateral development banks not already

recognized in cash.

Securities receivables are included in interest-earning securities or shares.

4. Loans and credit risk

This item includes amounts receivable in connection with loans, including

professional securities transactions, insofar as these are not recognized in the banks

item.

Securities receivables are included in interest-earning securities or shares.

In granting facilities and loans, the bank incurs a credit risk, i.e. the risk that the

receivable will not be paid. This primarily concerns the balance sheet items banks,

loans and interest-earning securities and off-balance sheet items. Concentration of

credit risk could result in a material loss for the bank if a change in economic

circumstances were to affect a whole industry or country.

5. Securities

37

The balance sheet items short-dated government paper, interest-earning securities

and shares include the investment portfolios, the trading portfolios, securities

receivables such as treasury paper and commercial paper, and equity participations.

Interest-earning securities forming part of an investment portfolio, which

principally consist of central government bonds, serve as a liquidity buffer among

others. The bank attempts to maximize the return on these instruments through a

policy of active management. Equity investments held on a long-term basis are

also included in the investment portfolios.

As part of its securities brokerage activities, the bank also trades in ABN AMRO

shares. In addition, shares were repurchased on the stock exchange in connection

with staff options granted, performance share plan and to cover positions with

clients.

ITEMS 2002 2001INVESTMENT PORTFOLIOS 1,00,823 86967TRADING PORTFOLIOS 48,965 51,325SHORT-DATED GOVERNMENT PAPER 1,191 3,126OTHER BANK PAPERS 3,269 3,295OTHER SECURITIES 3,998 6,145OTHER SHARES 1,190 903EQUITY PARTICIPATIONS 1,695 1,704TOTAL SECURITIES 1,61,131 1,52,455

6. Participating interests

38

This item includes equity participations held on a long-term basis for the purpose

of business operations.

7. Other assets and other liabilities

These items include those amounts, which are not of an accrued, or deferred nature

or which cannot be classified with any other balance sheet item. This concerns, for

example, current tax assets and current tax liabilities, deferred tax assets, an

intangible asset on account of unrecognized prior service pension cost, options,

servicing rights, precious metals and other goods, balances of payment transactions

still to be settled, short securities positions and market value of interest rate and

currency contracts as part of trading activities.

8. Prepayments and accrued income and accruals and deferred income

These items include revenue and expenses recognized in the period under review

but whose actual receipt or payment falls in a different period, as well as the total

net difference between contract rates and spot rates on foreign exchange hedging

operations.

9. Banks (liabilities)

39

This item comprises debts, including amounts on account of professional securities

transactions, to credit institutions, central banks and multilateral development

banks.

10.Total client accounts

This item includes total client balances held in current accounts, savings accounts

and deposits, as well as debts on account of professional securities transactions and

non-subordinated private loans.

11.Provisions2002 2001

This includes, Provisions for deferred tax liabilities, Provisions for pension

obligations, Provisions for contributions to health insurance after retirement,

Insurance fund liabilities.

Other provisions:

The other staff provisions refer in particular to occupational disability and other

benefits, except early retirement benefits, payable to non-active employees.

Provisions formed for staff benefit schemes due to restructuring are accounted for

as restructuring provisions. Insurance fund liabilities include the actuarial reserves

40

and the premium and claims reserves of the group's insurance companies.

Provisions are generally long-term in nature.

The expected return on investments regarding pension obligations is weighted on

the basis of the fair value of these investments. All other assumptions are weighted

on the basis of the defined benefit plan obligations. Unrecognized service cost

refers to the additional pension obligations resulting from the lowering of the

retirement age to 62 years for the employees.

Assumptions relating to movements in health care significantly affect the amounts

disclosed for contributions to post-retirement health care. An increase of 1% in the

assumed movement in the costs of health care would result in the accumulated

obligation for other post-retirement benefits.

12.Fund for general banking risks

The fund for general banking risks covers general risks associated with lending and

other banking activities. The fund is net of tax and forms part of tier 1 capital; it is

maintained partly in currencies other than the euro.

13.Subordinated debt

This item includes subordinated debentures and loans. It comprises debt

subordinated to all other current and future liabilities of ABN AMRO Holding N.V

as well as subordinated borrowings of consolidated participating interests. The

average interest rate on subordinated debt was 6.2%.

41

14.Maturity

Short-dated liabilities and demand deposits are, generally matched by cash, assets,

that can be realized, at short notice or lending operations as part of the interest rate

risk policy. The balance sheet is already presented in descending order of liquidity.

A number of items containing assets or liabilities with varying maturities are

analyzed in the following table. This analysis does not include liquid assets such as

cash and short-dated government paper and the bond investment portfolios, which

by their nature can be realized at short notice. In every country in which ABN

AMRO is active, liquidity satisfies the standards imposed by the supervisory

authorities.

15.Net commissions

This item includes revenue from securities brokerage, domestic and international

payments, asset management, insurance, guarantees, leasing and other services.

Amounts paid to third parties are shown as commission expense.

16.Results from financial transactions

This includes results from securities trading, foreign exchange dealing and

derivatives transactions. The category other includes trading LDC debt securities,

currency translation differences on investments – other than those included in

42

tangible fixed assets – in branches, subsidiary and participating interests in hyper-

inflationary countries, results from private equity positions as well as results from

transactions in connection with hedging of the foreign currency profit.

17.Addition to the fund for general banking risks

This item includes the addition to or release from the fund, management’s intention

being to maintain the fund at a level equal to approximately 0.5% of risk-weighted

total assets.

18.Value adjustments to financial fixed assets

Financial fixed assets include the bond and equity investment portfolios and

participating interests on which the bank does not exercise an influence.

Diminutions in value of the bond investment portfolio may relate to a permanent

deterioration of the debtor’s quality. These diminutions in value and the

diminutions in value below the purchase price of shares and participating interests

on which no influence is exercised, together with amounts released in respect of

earlier diminutions in value, are included in this item.

19.Minority interests

This item comprises the share of third parties in results from subsidiaries and other

group companies, as well as dividends on preferred stock issued by subsidiaries.

43

20.Earnings per ordinary share

Basic earnings per share are computed by dividing net profit available to ordinary

shareholders by the weighted average number of ordinary shares outstanding.

Diluted earnings per ordinary share include the determinants of basic earnings per

ordinary share and, in addition, the effect arising should all outstanding rights to

ordinary shares are exercised.

RATIO ANALYSIS

Introduction

Ratio analysis is an important means of expressing the relationship between two

numbers. A ratio can be computed from any pair of numbers to be useful.

The techniques used in analyzing financial statements are comparative statements,

trend analysis, fund flow and cash flow analysis, cost volume-profit analysis and

ratio analysis. The ratio analysis is one of the powerful tools of financial analysis.

It is the process of establishing and interpreting various ratios. It is with the help of

44

ratios that the financial statements can be analyzed more clearly which helps in

decision making.

A ratio is a simple arithmetical expression of the relationship of one number to

another. It ma be defined as the indicated quotient of two mathematical

expressions.

According to the accountant’s Handbook by Wixon, Kell and Bedford, a ratio

“is an expression of the quantitative relationship between two numbers”.

According to Kohler, “a ratio is the relation, of the amount, a, to another, b,

expressed as the ratio of a to b; a:b(a is to b) ; or as a simple fraction, integer,

decimal, fraction or percentage.”

Meaning

Ratio analysis is the technique of calculating a number of accounting ratios from

the data or figures found in the financial statements, comparing the computed

accounting ratios with those of the previous years or with those of other concerns

engaged in similar line of activities or with those of standard or ideal ratios, and

interpreting the comparison i.e. drawing conclusions from the comparison of the

accounting ratios.

45

In short, it is the technique of interpretation of the financial statements with the

help of the accounting ratios derived from the financial statements. Basically, it is a

device to analyze and interpret the financial health of an enterprise.

History

Ratios were known and used from time immemorial. But the idea of using ratios as

a technique for the analysis of the financial statements of business concerns were

suggested for the first time in 1919 by a German scholar, named Alexander Wall –

who is considered to be the pioneer of ratio analysis. Since then ratio analysis has

come to be recognized as a very useful tool of financial analysis.

The use of ratio analysis as a financial tool has increased in the recent years. It is

used for assessing the current and long-term financial soundness of a business

concern. It is also used for analyzing the various aspects of operational efficiency

and the degree of profitability of a concern.

SIGNIFICANCE OF RATIO ANALYSIS:

The ratio analysis is one of the most powerful tools of financial analysis. It is used

as a device to analyse and interpret the financial health of enterprise. It is not only

useful to the financial managers but also to the suppliers of goods on credit, the

financial institutions, the investors, the shareholders and also the management.

Ratios have wide applications and are of immense use today.

46

Managerial uses of ratio analysis

Utility to shareholders

Utility to creditors

Utility to employees

Utility to government

Managerial uses

i. Helps in decision-making

Financial statements are prepared primarily for decision-making. But the

information provided in the financial statements is not an end in itself and

no meaningful conclusions can be drawn from these statements alone.

47

Ratio analysis helps in making decisions from the information provided in

these financial statements.

ii. Helps in financial forecasting and planning

Planning is looking ahead and the ratios calculated for a number of years

work as a guide for the future. Meaningful conclusions can be drawn for

future from these ratios. Thus, ratio analysis helps in forecasting and

planning.

iii. Helps in communicating

The financial strength and weakness of a firm are communicated in a more

easy and understandable manner by the use of ratios. Thus, ratios help in

communication and enhance the value of the financial statements.

iv. Helps in control

Ratio analysis even helps in making effective control of the business.

Standard ratios can be based upon proforma financial statements and

variations or deviation, if any, can be found by comparing the actuals with

the standards so as to take a corrective action at the right time. The

48

weaknesses or otherwise, if any, come to the knowledge of the

management, which helps in effective control of the business.

v. Other uses

There are so many other uses of the ratio analysis. It is an essential part of

the budgetary control and standard costing.

Utility to shareholders/investors

An investor in the company will like to asses the financial position of the

concern where he is going to invest. His first interest will be the security of his

investment and then a return in the form of dividend or interest. Long-term

solvency ratios will help of the concern. Profitability ratios, on the other hand,

will be useful to him in assessing the financial position determine profitability

position. Ratio analysis will be useful to the investor in making up his mind

whether present financial position of the concern warrants further investment or

not.

Utility to creditors

The creditors or suppliers extend short-term credit to the concern. They are

interested to know whether financial position of the concern warrants their

payments at a specified time or not. The concern pays short-term creditors out

of its current assets. If the current assets are quite sufficient to meet current

49

liabilities, then the creditor will not hesitate in extending credit facilities.

Current and acid-test ratios will give an idea about the current financial position

of the concern.

Utility to employees

The employees are also interested in the financial position of the concern

especially profitability. Their wage increases and amount of fringe benefits are

related to the volume of profits earned by the concern. Profitability ratios are

helpful in this case.

Utility to government

Government is interested to know the overall strength of the industry. Various

financial statements published by industrial units are used to calculate ratios for

determining short-term, long-term and overall financial position of the

concerns. Government can base its future policies on the basis of financial

information available from various units. The ratios may be used as indicators

of overall financial strength of public as well as private sector.

Limitations of ratio analysis:

Limited use of a single ratio

50

A single ratio, usually, does not convey much of a sense. To make a better

interpretation a number of ratios have to be calculated which is likely to

confuse the analyst than help him in making any meaningful conclusion.

Lack of adequate standards

There are no well accepted standards or rules of thumb for all ratios which

can be accepted as norms. It renders interpretation of the ratios difficult.

Change of accounting procedure

Change in accounting procedure of a firm often makes ratio analysis

misleading, e.g., a change in the valuation of methods of inventories, from

FIFO to LIFO increases the cost of sales and reduces considerably the value

of closing stocks which makes stock turnover ratio to be lucrative and an

unfavorable gross profit ratio.

Window dressing

Financial statements can easily be window dressed to present a better picture

of its financial and profitability position to outsiders. Hence, one has to be

very careful in making a decision from ratios calculated from such financial

statements. But it may be very difficult for an outsider to know about the

window dressing made by a firm.

Personal bias

51

Ratios are only means of financial analysis and not an end in itself. Ratios

have to be interpreted and different people may interpret the same ratio in

different ways.

Incomparable

Not only industries differ in their nature but also the firms of the similar

business differ in their size and accounting procedures, etc. it makes

comparison of ratios difficult and misleading. Moreover, comparisons are

made difficult due to differences in definitions of various financial terms

used in the ratio analysis.

Price level changes

While making ratio analysis, no consideration is made to the change in price

levels and this makes the interpretation of ratios invalid.

Ratios no substitute

Ratio analysis is merely a tool of financial statements. Hence, ratios become

useless if separated from the statements from which they are computed.

52

CLASSIFICATION OF RATIOS:

Ratios

(A) (B) (C)

Traditional Classification Functional Classification Significance RatioOr or or

Statement Ratios Classification According Ratios Accordingto Tests to Importance

1. Balance Sheet Ratios 1. Liquidity Ratios 1. Primary Ratios or 2. Leverage Ratios 2. Secondary

Position Statement Ratios 3. Activity Ratios4. Profitability Ratios

2. Profit and Loss Account Ratios or

Revenue/Income Statement Ratios

3. Composite/Mixed Ratios or

Inter Statement Ratios

NET PROFIT RATIOS :

The net profit ratio helps in determining the efficiency with which affairs of the

business are being managed. An increase in the ratio over the previous period

53

indicates improvement in the operational efficiency of the business. The ratio is

thus an effective measure to check the profitability of the business.

Profit Before Tax as % age of Capital Employed:

Particulars 2002 2001 2000

Profit Before Tax (A) 3,713 3,613 4,725

Capital Employed (B) 10,781 11,787 12,523

Ratio (A/B) 34.44 30.65 37.73

There has been a continuous change in the ratio of Profit Before Tax to Capital

Employed as shown from 2000 to 2002. In 2000 it was 37.73%, in 2001 it dropped

to 30.65% and again in 2002 it rose to 34.44%.

The Profit before Tax has increased with a significant rise of 3.79%, which proves

the operational efficiency of ABN AMRO Bank over the previous year. The rise in

54

the Profit Before Tax is mainly due to the decrease in the overall Expenses of the

organization. Also the increased other revenues has resulted in higher profits in FY

2002.

The significant rise in Profits coupled with the reduced Capital Base has resulted in

a significant increase in the ratio of Profit Before Tax to Capital Employed.

Profit After Tax as % age of Capital Employed:

Particulars 2002 2001 2000

Profit After Tax (A) 2,207 3,320 2,498

Capital Employed (B) 10,781 11,787 12,523

Ratio (A/B) 15.13 19.76 19.95

55

The same rise in the ratio of Profit Before Tax to Capital Employed is again

brought out by the ratio of Profit After Tax to Capital Employed, which has

decreased from 19.76% in the first year to 19.76% in the second year and again

decreased to 15.13% in the third year.

Earnings per Share

Particulars 2002 2001 2000

Earnings per Share (Rs.) 1.39 2.10 1.63

56

There has been a fluctuation in the Earnings Per Share of the company over the

past few years. The earnings per Share was Rs.1.63 in 2000 which rose to Rs.2.10

in 2001, but again reduced to Rs.1.39 in the FY 2002-03 over Rs.1.67 per share in

the FY 2001-02.

Dividend per share

Particulars 2002 2001 2000

DIVIDEND PER SHARE 0.90 0.90 0.90

57

Unlike the Company’s EPS, its dividend per share is constant for the financial

years 2000 to 2002. The dividend per share has been Rs.0.90 per Rs.10/- share

from the 2000 to 2002 depicting that it is a feasible choice for investors. A constant

dividend per share is dependable and also shows a good trend for the investors to

invest their money into the business.

BALANCE SHEET RATIO:

Networth of the Company:

58

The Networth of the Co. comprises of the Share Capital plus the Reserves &

Surplus less the Treasury Stock .

PARTICULARS 2002 2001 2000

SHARE CAPITAL 1,704 1,677 1,676

RESERVES 9,202 10,233 10,868

LESS,TREASURY STOCK 125 123 21

TOTAL NET WORTH 10,781 11,787 12,523

The Networth of the company has fallen considerably during the last 3 financial

years. In FY 2002 the reserves decreased by Rs. 1,006 million over that of FY

2001. Also in FY 2001 the same has decreased by Rs. 736 million to that of FY

2000. This decrease is due to the fluctuating profits which are not contributing to

the reserves, which is reducing each year.

INTERPRETATION OF HDFC BANK LIMITED

FINANCIAL RESULTS

59

HDFC Bank has placed itself to the top position in its performance during the

financial year 2002-03. its Balance-Sheet size has rounded up at Rs.30,000 crores

this year. The growth grew up by 131 per cent (%) during the quarter ended

September 30, 2003. In the wholesale front there has been a consistent growth in

the range of 10-15 percent.

Profit and Loss account – FY 2002-03:

For the financial year ended 31 March 2003, the bank recorded healthy growth in

both Profit & Loss Account and Balance Sheet parameters. Net revenues (net

interest income plus other income) increased by 35.5% from Rs.962.5 crores in

2001-2002 to Rs.1304.1 crores in 2002-03. Net interest income (interest earned

less interest expended) increased by Rs.201.8 crores to Rs.831.0 crores, driven by

average asset growth of 26.7% and improvement of 14 basis points in net interest

margin, to 3.26%. Other Income (non interest revenues) grew by 42.0% to

Rs.473.1 crores in 2002-03 and had three components. Commissions and fees,

which are earned from a wide range of retail, transactional and trade services,

increased by 47% to Rs 241.8 crores. Profits on sale of investments, which

represent, gains from the bank’s securities trading and debt distribution businesses

increased by 27.6% to Rs. 132.5 crores. Foreign exchange and derivatives revenues

60

were up by 48.8% to Rs 95.4 crores, driven by higher customer trade volumes and

growth in the interest rate swaps business.

As a result of a significant increase in infrastructural investments, geographical

expansion and new product roll-outs, operating expenses as a proportion of total

revenues increased from 43.4% in 2001-02 to 45.4% in 2002-03. A major portion

of the increase in expenditure related to expansion of the retail asset, credit card

and merchant acquiring businesses and an increase in the number of branches and

ATMs by 35% and 52% respectively. For 2002-03, total loan loss provisions

(general and specific) were Rs. 88.4 crores (Rs 85.8 crores in 2001-02) and

provisions for depreciation and amortization of investments were Rs 52.6 crores

(Rs 19.2 crores in 2001-02) representing primarily the amortization of premia on

investments in the ‘held to maturity’ category. After providing for tax of Rs.183.3

crores (previous year Rs.128.3 crores), Net Profit increased by 30.5% to Rs.387.6

crores for the year ended March 31, 2003. Earnings per share (EPS) increased by

24.9% from Rs.11.01 in 2001-02 to Rs.13.75 in 2002-03.

Balance Sheet – March 31, 2003:

61

For the year ended March 31, 2003, deposits increased by 27% from Rs.17654

crores to Rs.22376 crores. The customer acquisition momentum, driven by branch

expansion and the bank’s strategy of providing its retail customers convenient and

affordable products delivered through multiple channels, continued to bear fruit

with savings account deposits increasing by 58% from Rs.2957 crores to Rs.4663

crores. Advances grew by 72.5% to Rs.11755 crores with total retail advances

constituting 29% as of March 31, 2003, as against 21% as at March 31, 2002. The

bank’s core customer assets (including advances, commercial paper, corporate

debentures, etc.) increased from Rs.10452 crores as of March 31, 2002 to Rs.14450

crores as of March 31, 2003. In addition, the bank held Rs.2160 crores of

investments in securities paper where the underlying assets were retail loan

receivables (for commercial vehicle, car and mortgage loans) and collateralized

loan obligations. Total customer assets (including securities) were therefore Rs.

16610 crores as of March 31, 2003. Total balance sheet size grew by 28% from

Rs.23787 crores to Rs.30424 crores.

Quarterly Performance:

62

For the quarter ended March 31, 2003, net revenues were 375.3 crores, up by

29.7% from Rs. 289.4 crores in the corresponding quarter ended March 31, 2002.

Net interest income increased by 32.9% to Rs. 246.4 crores, driven by balance

sheet growth and a marginal improvement in spreads. Other income grew by

23.9% to Rs. 128.9 crores, consisting of commissions of Rs. 61.9 crores, profits on

sale of investments of Rs. 38.6 crores and foreign exchange & derivatives revenues

of Rs 28.3 crores, as against Rs 51.5 crores, Rs.33.2 crores and Rs 19.7 crores

respectively for the corresponding quarter ended March 31, 2002. Operating

expenses increased from Rs.118.6 crores to Rs. 171.5 crores. After providing for

loan loss provisions of Rs 14.3 crores, provisions for mark-to-market of

investments & amortization of premia of Rs 19.7 crores and tax of Rs. 52.8 crores,

net profit for the quarter was Rs. 116.6 crores. This represents a 29.2% increase

over the corresponding quarter ended March 31, 2002 and a 17.9% increase over

the immediate preceding quarter ended December, 2002.

Dividend:

63

The Board of Directors recommended an enhanced dividend of 30% for the year

ended March 31, 2003 as against 25% for the previous year. This would be subject

to approval from the Reserve Bank of India.

Options:

Employees are one of the major contributors of the success and growth of the

Bank. The Board of Directors are looking forward for such continued contribution

in future from employees at all levels. With a view to attract, motivate and retain

the best talent in the country, it is proposed to grant 10,000,000 stock options to the

employees and Directors of the Bank at prevailing market prices on the dates of

respective grants. Grant of this fresh set options would be subject to the approval

of the shareholders of the Bank.

Capital Adequacy Ratio:

The bank’s total capital adequacy ratio (CAR) stood at a healthy 11.1%, well

above the regulatory minimum of 9%. Of this, Tier 1 CAR was 9.5%. The Reserve

Bank of India in its master circular on prudential norms relating to capital

adequacy has now capped general loan loss provisions and investment fluctuation

reserve at 1.25% of the total risk weighted assets and contingents for inclusion as

64

Tier 2 capital. This is the first time the investment fluctuation reserve has been

included in this limit. The bank holds higher levels of general provisions and

investment fluctuation reserves, which are now therefore, excluded from the Tier 2

capital calculation. But for this ceiling, the total capital adequacy ratio would have

been higher by about 0.5%.

Business Update:

Despite the challenging and volatile environment and intensifying competition

during 2002-03, the bank grew in business volumes and revenues in all its three

business segments – Wholesale Banking, Treasury and Retail Banking. In the

wholesale banking business, where the bank caters mainly to corporate and

institutional customers, business grew through a combination of adding new

customers, cross-selling more products and increasing market share for existing

products. The bank’s cash management business, supply chain management

products, which combine cash management with vendor/distributor finance, as

well as new initiatives in the agriculture finance area were the key drivers of

growth in this segment.

During 2002-03 the retail franchise experienced significant growth. The total

number of retail accounts increased from 2.2 million in March 2002 to over 3.1

million in March 2003, a growth of almost 50%, for the second year in succession.

65

These customers can conveniently deal with the bank through the growing branch

network in 122 cities as well as through alternative direct banking channels like

ATMs, phone banking (in 80 cities), net banking and mobile banking. From March

2002 to March 2003, the number of branches (including extension counters)

increased from 171 to 231 and the size of the bank’s ATM network expanded from

479 to 732. Savings account deposits, which reflect the strength of the retail

liability franchise, grew by almost 58% in 2002-03. With a significant expansion in

the geographical coverage of retail loan products like car loans and personal loans,

as well as the launch of new products like 2 wheeler loans, the total retail asset

portfolio increased from Rs.1430 crores as of March 31, 2002 to Rs.3163 crores as

of March 31, 2003, an increase of 121 %. Including the commercial vehicle loan

portfolio, which is a mix of retail and transport operator finance, total retail loans

touched Rs 3441 crores as of March 31, 2003. The bank’s credit card business

which is just over a year old now, has a presence in 18 cities with total number of

cards issued at 181,000.

The bank also significantly expanded its presence in the “merchant acquiring”

business with the total number of point-of-sale (POS) terminals installed by the

bank at over 21,000, up from 6480 in the previous year.

Risk Management and Portfolio Quality:

66

The bank’s portfolio quality remains amongst the best in the Indian banking

industry with net non-performing assets (NPAs net of specific loan loss provision,

interest in suspense and ECGC claims received) at 0.4% of advances and 0.3% of

total customer assets. The bank’s policies on both specific and general loan loss

provisions continue to be more conservative than the regulatory requirements. The

bank continues to have a policy of holding general provisions of between 1% to

3% for its retail and middle market product programs as well as around 0.4% for

corporate standard assets. As on March 31, 2003, total general loan loss provisions

were about 1% of standard advances as against the regulatory requirement of

0.25%. The general provisions amounted to about 0.7% of standard customer

assets.

REVIEW OF THE FINANCIAL PERFORMANCE OF HDFC BANK:

67

NET PROFIT RATIOS :

Profit Before Tax as % age of Capital Employed:

2003 2002 2001

PROFIT BEFORE TAX(A) 3,151 4,254 5,709

CAPITAL EMPLOYED(B) 9,131 19,423 22,448

RATIO(A/B) 34.5 21.9 25.43

Profit After Tax as % age of Capital Employed:

68

2003 2002 2001

PROFIT AFTER TAX(A) 2,102 2,971 3,876

CAPITAL EMPLOYED(B) 9,131 19,423 22,448

RATIO(A/B) 23.02 15.29 17.27

Earnings per Share:

69

Particulars 2003 2002 2000Profit After Tax 2,102 2,971 3,876

Number of Equity Shares (in million) 356.27 471.59 445.52

Earnings per Share (Rs.) 5.9 6.3 8.7

Dividend per share:

70

Particulars 2003 2002 2001

Dividend declared (A) 704.40 536.90 359.50

No of Equity Shares (in million)(B) 234.80 214.76 179.75

Ratio (A/B) 3.00 2.50 2.00

BALANCE SHEET RATIOS.

71

Debt Equity Ratio:

2003 2002 2001

Debt Equity Ratio 14.1 10.0 10.9

Current Ratio:

72

PARTICULARS 2003 2002

CURRENT ASSETS (A) 2749.63 2265.84

CURRENT LIABILITIES (B) 1665.80 1427.10

RATIO (A/B) 1.65 1.59

73

INTRODUCTION

ICICI Bank is India's second-largest bank with total assets of about Rs.112,024

crore and a network of about 450 branches and offices and about 1750 ATMs.

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

corporate and retail customers through a variety of delivery channels and through

its specialized subsidiaries and affiliates in the areas of investment banking, life

and non-life insurance, venture capital, asset management and information

technology. ICICI Bank's equity shares are listed in India on stock exchanges at

Chennai, Delhi, Kolkata and Vadodara, the Stock Exchange, Mumbai and the

National Stock Exchange of India Limited and its American Depositary Receipts

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

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

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

Bank was reduced to 46% through a public offering of shares in India in fiscal

1998, an equity offering in the form of ADRs listed on the NYSE in fiscal 2000,

ICICI Bank's acquisition of Bank of Madura Limited in an all-stock amalgamation

in fiscal 2001, and secondary market sales by ICICI to institutional investors in

fiscal 2001 and fiscal 2002. ICICI was formed in 1955 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

74

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, and the move

towards universal banking, the managements of ICICI and ICICI Bank formed the

view that the merger of ICICI with ICICI Bank would be the optimal strategic

alternative for both entities, and would create the optimal legal structure for the

ICICI group's universal banking strategy. The merger would enhance value for

ICICI shareholders through the merged entity's access to low-cost deposits, greater

opportunities for earning fee-based income and the ability to participate in the

payments system and provide transaction-banking services. The merger would

enhance value for ICICI Bank shareholders through a large capital base and scale

of operations, seamless access to ICICI's strong corporate relationships built up

over five decades, entry into new business segments, higher market share in

various business segments, particularly fee-based services, and access to the vast

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

75

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 Ahmedabad 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.

ICICI Bank, post its merger with parent ICICI, is the second largest bank in the

country with a strong presence in the retail segment. While the merger was

completed in FY02 the full effect of the same was seen in FY03. The bank has

been trying to shed its image as a corporate banker and hence is aggressively

targeting the retail segment for growth (more so out of compulsion), at the same

time reducing its exposure to the corporate segment.

76

PROFIT AND LOSS ACCOUNT – FY 2002-03:

For the financial year ended 31 March 2003, the bank recorded healthy growth in

both Profit & Loss Account and Balance Sheet parameters. Net revenues (net

interest income plus other income) increased by 34.43% from Rs.11,677 millions

in 2001-2002 to Rs.33,919 millions in 2002-03. Net interest income (interest

earned less interest expended) increased by Rs.8311 millions to Rs.14,2418

millions. Other Income (non interest revenues) grew by 41.64% to Rs.19,678

millions in 2002-03.

For 2002-03, total provisions for depreciation and amortization of investments

were Rs 19678 millions (Rs 5,747millions in 2001-02) representing primarily the

amortization of premia on investments in the ‘held to maturity’ category. After

providing for tax, Net Profit increased by 13.6% to Rs.23973 millions for the year

ended March 31, 2003. Earnings per share (EPS) decreased by 9.5% in 2002-03.

77

BALANCE SHEET – MARCH 31, 2003:

For the year ended March 31, 2003, deposits increased by 27% from Rs.3,20,851

millions to Rs.4,81,693millions. Advances grew by 13.28% from Rs.4,70,349

millions to Rs.5,32,794 millions in March 31, 2003. The bank’s net assets

decreased from Rs.42,393.44 millions as of March 31, 2002 to Rs.40,607.27

millions as of March 31, 2003. In addition, the bank held Rs.3,54,623 milions of

investments in securities paper where the underlying assets were retail loan

receivables (for commercial vehicle, car and mortgage loans) and collateralized

loan obligations. Total balance sheet size from Rs.1041099.21 millions to

Rs.1068119.66 millions.

RISK MANAGEMENT

Risk is an inherent part of ICICI Bank’s business, and effective Risk Compliance

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

Bank has identified Risk Compliance & Audit Group as one of the core

competencies for the next millennium. The Risk Compliance & Audit Group

Group (RC & AG) at ICICI Bank benchmarks itself to international best practices

so as to optimise capital utilisation and maximise shareholder value. With well

defined policies and procedures in place, ICICI Bank identifies, assesses, monitors

and manages the principal risks:

78

Credit risk (the possibility of loss due to changes in the quality of

counterparties)

Market Risk (the possibility of loss due to changes in market prices and

rates of securities and their levels of volatility)

Operational risk (the potential for loss arising from breakdowns in policies

and controls, human error, contracts, systems and facilities)

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

methodology. In addition to three departments within the Risk Compliance &

Audit Group handling the above risks, an Analytics Unit develops quantitative

techniques and models for risk measurement.

CREDIT RISK MANAGEMENT

Credit risk, the most significant risk faced by ICICI Bank, is managed by the

Credit Risk Compliance & Audit Department (CRC & AD) which evaluates

risk at the transaction level as well as in the portfolio context. The industry analysts

of the department monitor all major sectors and evolve a sectoral outlook, which is

an important input to the portfolio planning process. The department has done

detailed studies on default patterns of loans and prediction of defaults in the Indian

context. Risk-based pricing of loans has been introduced.

79

The functions of this department include:

Review of Credit Origination & Monitoring

o Credit rating of companies/structures

o Default risk & loan pricing

o Review of industry sectors

o Review of large exposures in industries/ corporate groups/ companies

o Ensure Monitoring and follow-up by building appropriate systems

such as CAS

Design appropriate credit processes, operating policies & procedures

Portfolio monitoring

o Methodology to measure portfolio risk

o Credit Risk Information System (CRIS)

Focussed attention to structured financing deals

o Pricing, New Product Approval Policy, Monitoring

Monitor adherence to credit policies of RBI

During the year, the department has been instrumental in reorienting the credit

processes, including delegation of powers and creation of suitable control points in

the credit delivery process with the objective of improving customer response time

and enhancing the effectiveness of the asset creation and monitoring activities.

80

Availability of information on a real time basis is an important requisite for sound

risk management. To aid its interaction with the strategic business units, and

provide real time information on credit risk, the CRC & AD has implemented a

sophisticated information system, namely the Credit Risk Information System.

In addition, the CRC & AD has designed a web-based system to render

information on various aspects of the credit portfolio of ICICI Bank.

MARKET RISK COMPLIANCE & AUDIT GROUP

ICICI Bank is exposed to all categories of Market Risk, viz.,

Interest Rate Risk (risk due to changes in interest rates)

Exchange Rate Risk (risk due to changes in exchange rates)

Equity Risk (risk due to change in equity prices)

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

instruments)

The Market Risk Compliance & Audit Department evaluates, tests and

approves market risk methodologies developed by the Treasury. It also participates

in the new product approval process on a firm-wide basis and evaluates all new

products from a market risk perspective.

81

OPERATIONAL RISK MANAGEMENT

ICICI Bank, like all large banks, is exposed to many types of operational risks.

These include potential losses caused by events such as breakdown in information,

communication, transaction processing and settlement systems/ procedures.

The Audit Department, an integral part of the Risk Compliance & Audit Group,

focusses on the operational risks within the organisation. In recent times, there has

been a shift in the audit focus from transactions to controls. Some examples of

this paradigm shift are:

Adherence to internal policies, procedures and documented processes

Risk Based Audit Plan

Widening of Treasury operations audit coverage

Use of Computer Assisted Audit Techniques (CAATs)

Information Systems Audit

Plans to develop/ buy software to capture the workflow of the Audit

Department

The Audit Department conceptualised and put into operation a Risk Based Audit

Plan during the year 1998-99. The Risk Based Audit Plan envisages allocation of

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

82

REVIEW OF THE FINANCIAL PERFORMANCE OF ICICI BANK:

NET PROFIT RATIOS :

Profit Before Tax as % age of Capital Employed:

2003 2002 2001

PROFIT BEFORE TAX(A) 7,804 2,898 2,265

CAPITAL EMPLOYED(B) 69,337 62,486 13,126

RATIO(A/B) 11.26 4.64 17.26

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Profit After Tax as % age of Capital Employed:

2003 2002 2001

PROFIT AFTER TAX(A) 23,973 2,583 1,611

CAPITAL EMPLOYED(B) 69,337 62,486 13,126

RATIO(A/B) 34.57 4.13 12.27

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Earnings per Share:

PARTICULARS 2003 2002 2001

EARNING PER SHARE -9.6 0.1 4.4

85

ABN AMRO BANK’S MARKET:

With 66 dealing rooms worldwide covering every time zone, ABN AMRO offers

the widest range of Treasury services. ABN AMRO Bank's network of Treasury

desks in India have demonstrated a commitment to a high quality and consistency

in execution, providing a wide range of products and competitive prices, with

professional handling of both large and small orders.

These services are offered out of the Central Treasury in Mumbai and a dealing

room in each of other branches, viz, Delhi, Chennai, Calcutta, Pune, Baroda,

Hyderabad and Bangalore. Each of these branches is equipped with state of the art

information and communication technology; the branches also have access to the

ABN AMRO international network of treasuries in more than 44 countries, which

allows them to offer their services on a real time basis.

Interbank FX desk of the Bank is one of the leading market makers in the spot and

forward Indian Rupee (INR) market; besides providing prices on all major

currencies to all the branches. It also has a dedicated night desk which takes care of

client requirements across various trading time zones.

The Corporate FX services are offered out of all the branches in India. These

services include offering competitive FX pricing to our customers, advisory

services, regular updates through formal newsletters, a daily and monthly

commentary on markets, and client seminars.

86

The Money Market desk of the Bank is one of the leading interbank players in the

area of government securities and money market instruments like Treasury Bills,

Certificates of Deposit and Commercial Paper. It also has dedicated personnel

servicing the money market requirements of its clients, which include distribution

and advisory services.

The Derivatives Desk is a market leader in providing various risk management

products to the Bank's corporate customers. The desk is actively involved in

structuring products to suit the specific risk profile, currency and interest rate view

of our clients. The product portfolio includes complex, structured derivative

instruments, besides the vanilla interest rate and currency swaps and options.

ABN AMRO offers a wide range of products which includes Loans, Credit Cards,

Debit Cards, Savings & Current Accounts.

In this project, only three product category has been undertaken which includes:

PERSONAL LOANS

CREDIT CARDS

CAR LOANS

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WHAT’S PERSONAL LOANS?

Dreams, needs and wants come as a part and parcel of every individual. You want

to go for a vacation, but then you don’t have enough money to reach your dream

destination. You want to buy a DVD Player and you have to save for months to get

it. You might have just utilized all your savings in buying a new house and now

there is nothing left for furnishing it.

Only if you had Aladdin’s genie to fulfill these wishes, or somebody who could

help you out. Approaching lenders becomes tedious and expensive due to high

interest rates and loads of paper work. In addition, you also have to provide them

with some kind of security. Once done, you now wait for days to get the loan.

Personal Loans alleviate most of the hassles that come with conventional loans -

paper work, delay in sanctioning and disbursement, necessity of a guarantor and

more importantly hypothecation of the asset financed.

PROS:

No Security/Guarantor Required

The most attractive feature of the personal loan is that you do not have to give any

kind of security to avail this loan. No physical security or hypothecation of assets

is required. You don’t have to mortgage any property or arrange for insurance of

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the asset There are no guarantors required, thereby saving you the embarrassment

and anxiety of asking friends or relatives.

Total Confidentiality

You don’t have to provide any Company or Corporate Guarantee, which means

that your colleagues don’t need to know you are applying for loan, thereby keeping

intact your social status. Personal Loans allow you total confidentiality.

No Questions Asked

No questions are as to the end use of loan, giving you complete freedom to use the

loan as you like. You are not answerable to the questions like why the loan is

taken, where the loan is used etc.

Easy Repayment

Personal Loans are repayable in equal monthly instalments, or EMIs as they are

popularly called. The EMI facility ensures that you are not burdened to pay up a

huge amount at one go. The repayment is spread over the tenure opted by you (12

months to 60 months) thereby allowing you greater flexibility to pay as you please.

Banks also provide you with the option to prepay the loan before the termination of

the opted tenure.

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Simple documentation

Personal Loans are targetted towards salaried individuals who occupy positions in

the managerial cadre. As such, the documentation is easy and in most cases, your

salary slip, bank statement and a proof of identity.

CONS:

Personal Loans are not come cheap

Personal Loans do not require any security or hypothecation of assets. Thus

according to the banking industry, the differential between an asset backed loan

and an unsecured loan is a minimum of 5% to cover the additional risk the lending

institution is exposed to. This leads to a high rate of interest of 21% compared to

any other secured loan of 16%.

Personal Loans are not for everyone

You are facilitated with a personal loan only if you are working in the managerial

cadre in a company featuring in the bank’s approved list of companies. You also

have to reside within the prescribed city limits of the bank. You also have to be of

a certain age to apply for the loan. This rigid criterion drifted away off the

individuals who do not fulfill them.

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Pre-payment at one go only

When the banks offer you the option of pre-payment it does not give the flexibility

of part payment .If you decide to repay the loan earlier than the pre-determined

period, you have to pay the whole outstanding principal. If you a minimal surplus

available to pay a part of your loan that would reduce your interest burden, the

bank does not allow it.

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PERSONAL LOANS FROM ABN AMRO BANK:

Money for any purpose. This is what personal loans are for. Use the loan amount

for buying your favourite music system or take your family on a holiday or for a

more long term purpose like buy a computer for your child. And getting it is quite

easy. TRA salary slip, proof of personal identity and signature will be enough.

ABN AMRO Bank offers personal loans to salaried and Self-employed.

Over the past few years ABN has taken an aggressive stance towards its

‘personal loans’ marketing drive. The strategy has been to popularize the

product, acquire new customers and create a voluminous business. All

though the business of personal loans is still in its infancy stage, many

customers have already been established. The ABN personal loans have

made a mark in the major metros and the prominent cities as well,

however, according to the bank a lot remains to be done and achieved.

Since it is an “unsecured” product, the bank has to be even more

watchful when giving it out.

ABN Amro bank personal loan for self-employed doctors is available in the

following cities:

1. Mumbai

2. Delhi

3. Calcutta

4. Chennai

5. Pune, and

6. Baroda

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THE PRODUCT AND ITS OFFERING –

Personal loans are essentially loan given out to customers in order to

enable them to purchase a certain commodity that they desire. Naturally,

the bank given out the loan keeping in mind an agreement which

involves a certain stipulated period of time and certain EMI payments on

the part of the customer.

Therefore, for instance, a customer may wish to buy a “house” and he

contacts ABN AMRO. The bank then accordingly gives him the loan

with the set of term and conditions applied.

Personal loans as a product is one which is very close to ABN’s heart, it

is due to this product that ABN has been able to increase it’s brand

recall and further enhance it’s brand image. This product too like Auto

loans holds a comparatively thin margin of revenues of the bank, it does

however add to the volume of the business.

PRODUCT FEATURES:

For salaried persons, ABN Amro bank has two categories of eligible

employers on which a person is given loan and the eligibility varies,

Category A and

Category B.

ABN Amro bank has the most comprehensive list of approved self-

employed professionals.

ABN Amro bank has certain special programs designed for the convenience

of customers, for example if you are a credit card owner, and would like to

avail personal loan to offset your credit card liability, then ABN has such a

program just for you.

PERSONAL LOANS FOR SALARIED:

ABN Amro bank personal loan for salaried is available in the following cities:

Mumbai, Delhi, Calcutta, Chennai, Pune and Baroda.

For salaried persons, ABN Amro bank has two categories on which the person is

given loan and the eligibility varies.

Category A and

Category B.

Category A:

Between 25 and 60 years or the age of retirement as per company policy,

whichever is higher.

Minimum Annual Gross salary : Rs. 100000

Minimum Loan amount: Rs. 50000

Maximum Loan amount: Rs. 750000

Maximum Tenure: 1-4 Years

Category B:

Between 25 and 60 years or the age of retirement as per company policy,

whichever is higher.

Minimum Annual Gross salary: Rs. 100000

Minimum Loan amount: Rs. 50000

Maximum Loan amount: Rs. 400000

Maximum Tenure: 1-3 Years

Income Verification:

Pay- slips for the latest two month

Bank statement of salary account for most recent 6 months

 Proof Of Employment Stability: [Any one or more of the following]

Appointment letter/s

Increment / Promotion Letter/s

Pay Slip/s

Laminated Identity Card

Form 16

Business Card (For proof of designation only)

 Proof Of Age [Copies of any one of the following ]

School Leaving Certificate

Passport

Permanent Account Number (PAN) Card

Birth Certificate

LIC Policy ( Showing name and Date of Birth )

Income Verification Pay- slips for the latest two month

Bank statement of salary account for most recent 6 months

Proof Of Employment Stability (Any one or more of the following):

Appointment letter/s

Increment / Promotion Letter/s

Pay Slip/s

Laminated Identity Card

Form 16

Business Card (For proof of designation only)

 

Proof Of Age (Copies of any one of the following):

School Leaving Certificate

Passport

Permanent Account Number (PAN) Card

Birth Certificate

LIC Policy (Showing name and Date of Birth)

PERSONAL LOANS FOR SELF-EMPLOYED PROFESSIONALS:

ABN Amro bank personal loan is available in the following cities:

Mumbai,

Delhi,

Calcutta,

Chennai,

Pune and

Baroda.

ABN Amro bank has certain special programs designed for the convenience of

customers, for example if you are a credit card owner, and would like to avail

personal loan to offset your credit card liability, then ABN has such a program just

for you.

Also ABN has special programs for its existing customers wherein they can avail

of a lower rate of interest.

The segments for personal loans is divided into 2 categories:

a) Salaried – they have need based product requirements

b) Self employed professionals – such as Doctors, Architects CA’s

etc.

c) Self Employed Others-here loans are given indirectly i.e., the

payment is done to an intermediary and then the customer pays

back to bank.

ABN AMRO personal loans are given under 2 schemes:

I) Relationship Reward Product: i.e., the existing customers of the

bank are automatically eligible for the personal loans.

II) Balance Transfer Product: i.e., if the customer is a credit card

holder of accredited issuer and he revolves constantly, then he is

eligible to pay off the card amounts via his personal loan from

ABN at a paltry 1.99% interest rate.

ABN Amro bank has the most comprehensive list of approved self-employed

professionals.

ABN Amro bank has certain special programs designed for the convenience of

customers, for example if you are a credit card owner, and would like to avail

personal loan to offset your credit card liability, then ABN has such a program just

for you.

Also ABN has special programs for its existing customers wherein they can avail

of a lower rate of interest.

PRICING STRATEGIES OF PERSONAL LOANS:

The personal loans have been priced in such as manner, so as to make it

a competitive and attractive product in the market full of customers. The

competition is undeniably fierce in this segment and thus ABN cannot

afford to have a passive approach.

The personal loans payment system range from 18% to 21.5% depending

on the classification of the customer.

Thus salaried customers and self employed professionals = 18%

Self employed others = 21.5% as the risk of default is higher.

Interest Rate

EMI Chart per Rs.1, 00,000

RATE 12mths 24mths 36mths 48mths

Category A 21% 9011 5109 3768 3097

Category B 22% 9059 5188 3819 3151

a) Principal outstanding as on date of prepayment. On Personal Loan, this is

applicable after completion of 12 months of the loan.

b) Prepayment could be for part or full payoffs.

A. SCHEDULE OF CHARGES & INTEREST

Charges in Rs.

Loans Statement Charges(per statement)

Cheque Dishonour Charges(per instrument)

Cheque Swap Charges(per set)

Cheque Swap Charges(per set) also involving

intercity transfer, entity change OR substitution of

liability.

Charges on prepayment made once in calendar year

(upto 25% of the principal amount outstanding)

Charges on prepayment on amount greater than

25% of the principal outstanding in the same

calendar year.

Prepayment charges if the loan is more than 3 years

old.

Prepayment charges if the loan is more than 3 years

old.

Duplicate NOC

Annual interest certificate

Duplicate annual interest certificate

250

450

500

1,000

NIL

5%

NIL

200

100

NIL

50

c) On the amount being prepaid in excess of 25% of the principal outstanding

in case of first prepayment and on total payment in case of second or

subsequent prepayment during a calendar year.

ABN AMRO Bank reserves the right to assess charges on transactions, which are

not covered by this schedule, and to amend rates stated in this schedule, without

prior or post notice to the Customer. The said schedule of charges is not exhaustive

and the charges presently mentioned are at the rates currently prevalent and can be

changed, any time and from time to time, at the sole and absolute discretion of

ABN AMRO Bank and such changes shall be final and binding on all the

customers of ABN AMRO Bank.

SALARIED INDIVIDUALS 17.5% - 20.5%

DOCTORS 16.5%

SELF EMPLOYED PROFESSIONALS 20%

SELF EMPLOYED BUSINESSMEN 22%

EXISTING BANK RELATIONSHIP

CUSTOMERS

16.5% - 21%

TRACK RECORD/SPECIAL SURROGATE

PROGRAMS

17.5% - 22.5%

PROCESSING FEE FOR ALL PERSONAL

LOANS

2%

INTEREST RATES FOR PERSONAL LOANS

THE PROMOTIONAL STRATEGY FOR PERSONAL LOANS:

ABN has been relatively aggressive with its promotions of the personal

loans. Local level promotions have been an on going phenomena,

ranging from direct sales agents melas to road shows, all has been

covered various schemes for existing bank customers are introduced in

order to increase the business and brand loyalty too.

ABN has a special tie-up with certain companies such as Compaq that enable the

customers to get products at a relatively reasonable price.

THE ADVERTISING STRATEGY OF PERSONAL LOANS:

ABN AMRO’s advertising strategy for personal loans has been very

positive and aggressive. One seen posters for home and other durables

that can be acquired via the ABN personal loans even though they are

expensive and unaffordable.

The theme of the campaign is “convenience” and “increasing

affordability” and “making dreams come true”! The various media being

used presently is newspapers such as TOI, HT and ET. This is however

proposed, to be increased in future by the use of the Radio and Interest

as well. The ads will focus on and highlight the theme.

THE PLACE / LOCATION:

This is again extremely vital so that the customers can reach the bank

and clear out their queries as and when desired. It is for this reason that

ABN has 7 Branches, strategically located in order to be accessible.

ABN Amro bank personal loan for self-employed doctors is available in the

following cities:

Mumbai,

Delhi,

Calcutta,

Chennai,

Pune, and

Baroda.

For salaried persons, ABN Amro bank has two categories of eligible employers on

which a person is given loan and the eligibility varies,

Category A and

Category B.

CUSTOMER SERVICE:

Most vital factor for the Bank; ABN focuses on making life easy for the

customer and therefore, there is focus on reducing the processing time of

the personal loans given out. The cycle takes max. 7 days for the

fulfillment of the customer’s urgent need to acquire the loan as soon as

possible.

The paper work is also made easy and a one-stop-shop concept is

incorporated. The aim is to service the loan as conveniently and as

quickly as possible.

PERSONAL LOANS FROM HDFC BANK:

PRODUCT FEATURES:

For salaried persons, HDFC Bank has categories of eligible employees on which a

person is given loan and the eligibility varies. There are over 6,500 companies that

fall in HDFC Bank's approved list of employers.

As regards personal loans for self employed professionals, HDFC Bank has the

most comprehensive list of approved self employed professionals

 

PERSONAL LOANS FOR SALARIED - HDFC BANK

HDFC Bank personal loan is available in the following cities:

Mumbai, Delhi, Baroda, Chennai, Pune, Bangalore and Ahmedabad.

Eligibility:

     The eligibility Criterion for Salary Professionals is as follows

 Age: Minimum of 25 limited to Maximum of 58 Yrs.

 Minimum Net Income: Rs.8000/- per month

 No of Yrs at Residence: 1 Year

 Minimum loan amount: 50,000

 Maximum loan amount: 2,00,000

 Telephone: Must at Office and Residence.

No of Years in Employment : 2 Yrs except for Doctors, CA, Engineers and

MBA's

  Tenor:

This Loan is available from a period of 1 to 4 Years.

Documents required for salaried persons:

Application Form

Photograph Signed On The Reverse

Latest Salary Slip or Salary Certificate along with latest Form 16

Proof Of Identity

Proof of Residence

Bank Statement for last 6 Months were salary / Income is credited

Interest Rate Structure:

Net Income Interest Rate (%)Loan Amount

Eligibility

6000/- to 8000/- per

month21 50000/-

8000/- to 10000/- per

month21 80000/-

10000/- to 12000/- per

month21 100000/-

12000/- to 15000/- per

month21 150000/-

15000/- to 20000/- per

month21 200000/-

Other Costs:

Overdue Interest Charges- 2% per month (Rs 250/- per month per bounce Cheque)

Documentation Charges- 2%

Prepayment cost - 2% of the principal outstanding balance after 6 Months.

PERSONAL LOANS FOR SELF EMPLOYED PROFESSIONALS:

HDFC Bank personal loan is available in the following cities:

Mumbai, Delhi, Baroda, Chennai, Pune, Bangalore and Ahmedabad.

The following professional are eligible for HDFC bank personal loans

Doctors

o M.B.B.S/M.D.

o B.D.S.

o Diploma in Ophthalmology (D.G.O.)

o D.O./D.O.M.S.

 

Others

o CA

o ICWA

o CS

o Engineers

o Architects

o MBA’s

Eligibility:

     The eligibility Criterion for Self Employed Professionals is as follows:  Age: Minimum of 25 limited to Maximum of 58 Yrs.

 Minimum Net Income: Rs 60,000/- Per annum as per ITS 2

 Minimum loan amount: 50,000

 Maximum loan amount: 2,00,000

 Telephone: Must at Office and Residence.

 Tenor:

This Loan is available from a period of 1 to 4 Years.

Documentation:

Documents required for self employed persons:

Proof of Identity

Proof of Residence

o One Passport Size Photograph

o Bank Statement for last 6 months where salary / Income is credited

Copies of IT returns along with computation of Income for the last 2 years

certified by a CA.

P&L account and Balance sheet for last 2 years certified by a CA

Qualification Proof

Interest Rate Structure:

Net Income Interest Rate (%)Loan Amount

Eligibility

6000/- to 8000/- per

month21 50000/-

8000/- to 10000/- per

month21 80000/-

10000/- to 12000/- per

month21 100000/-

12000/- to 15000/- per

month21 150000/-

15000/- to 20000/- per

month21 200000/-

 Other Costs:

Overdue Interest Charges- 2% per month (Rs 250/- per month per bounce Cheque)

Documentation Charges- 2%

Prepayment cost - 2% of the principal outstanding balance after 6 Months

PERSONAL LOANS FROM ICICI BANK:

PRODUCT FEATURES:

Loans for salaried & self employed individuals:

Loans are available from Rs. 20,000 to Rs. 10 Lakhs.

Repayment tenures from 12 - 60 months.

No Security, Collateral or Guarantors required.

Loans can be used for any purpose with no questions asked regarding the

end use of the loan.

Balances transfer facility available for those who want to retire any higher

debt.

All loan repayments are done via equated monthly instalments (EMI).

Eligibility

PERSONAL LOANS FOR SALARIED PERSONS:

Loan Amount:

ICICI Bank offers personal loans to salaried people with the loan offered ranging

as follows ;

Minimum Amount : Rs.20,000

Criteria Salaried Self - Employed Age 25 yrs. - 58 yrs. 25 yrs. - 65 yrs.Net Salary Net annual income - Rs.

96,000 p.aNet Profit after tax - Rs. 60,000 p.a

Eligibilty Employees of Public Ltd. cos. , Private Ltd. cos. MNCs Or Government.

Doctors, MBA's, Architects, CA's, Engineers, Traders & Manufacturers

Years in current job / profession 1 Year 3 Years

Years in current residence 1 Year 1 Year

Maximum Amount : Rs.3,00,000

 Tenor:

The loan tenor ranges from 1 year to 3 years.

The payment options range over terms of 12, 18, 24, 30 or 36 months.

  Eligibility: The age of the applicant should not be less than 25 years of age and not

more than 58 years.upto the retirement age as per the company policy

The applicant should have a minimum gross annual income of Rs.1, 20,000/-

(applicable for Mumbai and Delhi)

The applicant should have a minimum gross annual income of Rs. 96,000/-

(applicable for other cities)

The applicant is eligible for a loan if:

He / she is working with the State or Central Government.

He / she is salaried Doctor

He / she should be Graduates/Post Graduates from reputed Institutes (as per

ICICI approved list)

The applicant should be residing at the current residence for atleast 1 year.

The applicant should be with the current employer for atleast 1 year.

If the applicant is a Post-graduate then he / she should have a minimum

work experience of 2 years and if he is a Graduate then he / she should have

a minimum work experience of 5 years.

The applicant (if in Delhi and Mumbai) should have a permanent (landline) phone

connection at residence.

 Documentation: Application form with Photograph ( signed across) 

Proof Continuity of job/profession ( Any one)

o Form 16

o Appointment Letter 

Proof of Income - Last 2 salary slips 

3 months Bank Statement   

Proof of Identity (Any one)

o Passport / Driving License / Voters ID / PAN card / Photo Credit Card

/ Employee ID Card (Govt. Employees/Public Ltd. Co.) 

Proof of Residence ( Any one)

o Passport / Ration Card / Utility Bill / Voters ID / LIC Policy Receipt /

Letter from employer

Signature Verification ( Any one)

o Bankers Verification/Passport/Laminated Driving License/credit Card

with signature printed on the face of card 

Post Dated Cheque

EMI Chart:

EMI Chart per Rs.1, 00,000 

Loan Amount

Tenure (Months)Equated Monthly Installments-(Rs.)

12 18 24 30 36

100000 9311 6524 5139 4313 3768

Other Costs

Upfront fees is 2% of the loan sanctioned

Prepayment cost - 2% of the principal outstanding balance.

PERSONAL LOANS FOR SELF-EMPLOYED:

ICICI Bank offers personal loans in the self employed professionals category, only

to Doctors and Architects, on the following details.

Loan Amount:

ICICI Bank offers personal loans for self-employed professionals. The loan offered

ranges from a minimum amount of

Minimum Amount: Rs.20,000

Maximum Amount: Rs.3,00,000

 Tenor:

The loan tenor ranges from 1 year to 3 years. The payment options range over

terms of 12, 18, 24, 30 or 36 months.

  Eligibility:

The age of the applicant should not be less than 25 years of age and not

more than 65 years.

The minimum gross annual income for self-employed doctors should be Rs.

60,000

The minimum gross annual income for self-employed architects should be

Rs. 1,50,000.

The applicant should be in the current business / profession for atleast 3

years.

The applicant should be residing at the current residence for atleast 1 year.

The applicant (if in Delhi and Mumbai) should have a permanent (landline)

phone connection at residence

 Documentation: Application form with Photograph ( signed across)

Proof of Income - Last 2 years IT Returns

6 months Bank Statement

Proof of Identity ( Any one)

o Passport / Laminated Driving License / Voter ID / Photo PAN

Card/Photo Credit Card / Photograph attested by the Banker

Proof of Residence ( Any one)

o Passport / Ration Card / Utility Bill / Voters ID / LIC Policy Receipt

Proof of Office ( Any one)

o Utility Bill /Shops & Estab Cert / Lease Deed /Sales Tax Certificate /

Excise Duty Certificate

Copy of Professional Degree

Signature Verification

EMI Chart:

EMI Chart per Rs.1,00,000 

Loan Amount

Tenure (Months) Equated Monthly Installments-(Rs.)

12 18 24 30 36

100000 9311 6524 5139 4313 3768

Other Costs:

Upfront fees is 2% of the loan sanctioned

Loan processing charges

Prepayment cost - 2% of the principal outstanding balance

PLACES OF AVAILABILITY OF ICICI PERSONAL LOANS:

ICICI Personal Loans are currently operational in the following 17 cities:

West South North/East

Mumbai Chennai Delhi

Pune Bangalore Chandigarh

Nashik Hyderabad Ludhiana

Baroda Coimbatore Jaipur

Nagpur Cochin Calcutta

Indore Bhopal

COMPARISON BETWEEN ABN AMRO,HDFC &ICICI BANK:

ABN AMRO BANK

Bank: ABN Amro Bank

Eligibility:

Salaried: Minimum Gross income p.a. Rs.100000Self employed Professional: Minimum Grossincome p.a. Rs. 100000/- & Gross Annual Turnover Rs. 7,50,000/-

Minimum Loan Amount: Rs.50,000/-

Maximum Loan Amount: Rs 7,50,000/-

Maximum Tenure: 4 yearsInterest Rate: 12%Effective Interest Rates: 21% on monthly reducing balance

Frequency: NAMargin Required: NilSecurity Required: NilDocumentation: Proof of age   Proof of residence  Proof of identity  Post dated cheques  Last two months salary slip  Last 6 months bank statements  Proof of qualification  IT returns for past 2 years

Remark: Loan available only to the banks approved list of companies

 HDFC BANK

Bank: HDFC Bank

Eligibility: Minimum Annual income:Rs.96000 Net

Minimum Loan Amount: Rs.25000Maximum Loan Amount: Rs.500000Maximum Tenure: 4 yearsInterest Rate: 11.5%Effective Interest Rates: 21%Frequency: Calculated on monthly reducing balanceMargin Required: NoneSecurity Required: NoneDocumentation: Proof of age   Proof of residence  IT returns for past 2 years  Proof of qualification  Post dated cheques

Remark:The loan is provided only to people who are from a listed company and that too their list of companies

ICICI BANK

Bank: ICICI Bank

Eligibility:Minimum Annual income:Self employed: Rs.80000 GrossOthers: Rs.120000 Gross

Minimum Loan Amount: Rs.20000Maximum Loan Amount: Rs.300000Maximum Tenure: 3 yearsInterest Rate: 11.9%Effective Interest Rates: 21%Frequency: Yearly reducing balanceMargin Required: NoneSecurity Required: NoneDocumentation: Proof of age   Proof of residence  IT returns for past 2 years  Proof of qualification  Post dated cheques

Remark: The loan is provided only to people who are from a listed company and that too their list of companies

CREDIT CARDS OF ABN AMRO:

SMART GOLD CARDS:

Card Privileges:

The ABN AMRO Smart Gold Card offers you an exclusive set of superior features

and benefits.

Unmatched Smart Benefits:

Smart Rewards - No Waiting, Just Shopping! The ABN AMRO Smart Gold Card

is the only Credit Card in India that allows the customers to shop for their own

reward. With this Card, every time the customers wish to redeem their reward

points, all they have to do is go to any of the designated Smart Rewards outlets and

choose their own gift. The ABN AMRO Smart Rewards program is hassle free,

fast and truly rewarding for the Card members. Every time one uses his/her ABN

AMRO Smart Gold Card, earns 1 point for every Rs.50 spend. All

international transactions earn 50% more points.

PRODUCT FEATURES

Higher Credit Limits

Smart Gold Card provides higher credit limit than the limit provided by

other Credit Cards.

Flexi Limit

The unique Flexi limit feature helps to regulate the Credit Limit on the Add-

on Card. The customers can assign a percentage of the total Credit Limit to

the Add-on Card by calling the 24hour bank by phone number in your city.

Smart Companion

Share the joy of the Smart Gold Card with your loved ones. Your Card

provides you another very special offer! A complimentary Add-on Card for

life!

Smart Alerts

The Smart Alerts feature combines security with a package of technology

friendly e-mail and SMS messages on all vital Card transactions sent to you at

frequent intervals. For e.g. when we credit your account with a payment or you

use your Card on the Internet, you will be intimated of the same.

Smart Year End Statement Summary (YESS)

This revolutionary feature on your ABN AMRO Smart Gold Card

allows you to keep track of your spending habits and patterns. The

Smart Year End Statement Summary combines all your transactions

during the year and provides you a consolidated summary displaying

your usage pattern under different categories such as Airlines, Hotels,

Retail Stores etc. over a period of 12 months. It provides a scientific

analysis of your spends, thus enabling you to plan your finances better.

LowestEverBalanceTransfer@0.99%p.m.

Transfer your outstanding balance from your existing Credit Card to the ABN

AMRO Smart Gold at 0.99%* p.m. only - the lowest ever interest rate in the

industry. And get savings on interest payment of over 60%.

Global'CashAxess'24HoursADay

You can withdraw cash up to 30% of the Credit Limit on your ABN AMRO

Smart Gold Card from over 650,000 MasterCard ATMs around the world and

over 2900 MasterCard ATMs in India. You can also access cash from any ABN

AMRO Bank 24 Hour ATM

Global Validity For The Global Citizen

Your ABN AMRO Smart Gold Card puts you in control of the world. The Card

is accepted in about 23 million MasterCard merchant establishments

worldwide. It is a truly global Card that makes it easy for you to charge any

purchase on to your Card anywhere in the world. What's more, you can now

buy in any currency and pay back in Indian rupees.

Smart Cover

The ABN AMRO Smart Gold Card includes a package of insurance benefits.

It provides you a free Personal Accident Insurance cover of up to Rs. 15 Lakhs in

case of loss of life due to an air accident and up to Rs. 5 Lakhs due to other

accidents. Your Card automatically provides you Purchase Protection Insurance on

all purchases made on your Card against any damage or loss due to fire and theft

up to 90 days for Rs.40000 per year. The Credit Shield policy protects your family

against any outstanding liabilities, on your Credit Card up to Rs.50,000 in the

unfortunate event of the loss of your life. Additionally, you get a host of travel

related insurance covers free including Lost Baggage Insurance, Loss of Passport

Insurance and Delayed Flight Insurance of up to Rs.10,000 each and Delayed

Baggage Insurance of up to Rs.3000.

Smart Travel Privileges & Services

For your travel, business or pleasure, your ABN AMRO Smart Gold Card provides

you a set of exclusive offers and benefits courtesy SITA World Travel, part of the

Kuoni group. Besides getting you great discounts on hotels and exciting tourism

packages in India as well as abroad, you also get 3.5% discount on basic domestic

air fares and 5% on basic international air fares every time you choose to buy your

ticket on the Smart Gold Card. Besides, you also get the service of free delivery of

tickets right at your doorstep.

FREEDOM CREDIT CARDS:

The ABN AMRO Freedom Credit Card offers you a host of unique features that

act as constant checks against overspending.

PRODUCT FEATURES

Flexi Limit

The powerful Flexi limit feature offers you the freedom to regulate your credit

limit better. If at any point of time you feel that you need to control your

spending, you can simply call our Bank by Phone Executive who will be happy

to reduce your assigned limit. And, in case, you wish to increase the limit back

to its original level, you can do so again by simply calling us up.

You also have the option of assigning a specific percentage of your credit limit

for use by each of your additional cardholders.

Year End Statement Summary (YESS)

Freedom Credit Card introduces yet another revolutionary feature -

Year End Statement Summary, which combines all your transactions during the

year and provides you a consolidated summary displaying your usage pattern

under different categories such as food, clothing, jewelry etc over 12 months. It

provides a scientific analysis of your Card spends, thus enabling you to plan

better.

Exceptional Financial Benefits

Your Freedom Credit Card gives you up to 50 days of interest free credit* on

your purchases, if you pay your outstandings in full.While you may buy a

product anytime, you can choose to pay in parts per your convenience. All you

have to do is just pay a minimum of 5% of the total outstanding each month

(subject to a minimum of Rs. 200) and the balance in installments that suit your

budget.

Global 'Cash Axess'

You can access cash up to 30% of your credit limit at over 2900 ATMs across

India and over 6,50,000 ATMs across the globe. You can access cash round-

the-clock, 365 days a year from any of the ATMs that display the MasterCard

sign.

Global Acceptance

Your Freedom Credit Card is welcomed at over 100,000 MasterCard outlets in

India and Nepal and at over 23 million merchant establishments worldwide.

You can now freely use your Freedom Credit Card for everyday purchases at

neighborhood shops, department stores, petrol pumps, restaurants and hotels,

for airline tickets, buying consumer durables, internet purchases and even

paying for hospital bills. With your internationally accepted Freedom Credit

Card, you are now a truly global citizen.

Travel Partner

Your Freedom Credit Card helps you get discounts of up to 3.5% on domestic

tickets and 5% on international tickets (delivered right at your doorstep) that

are bought through SITA World Travel, a part of Kuoni group. In addition, you

get great discounts on hotels and exciting holiday packages that suits your

budget.

Car Rental

As a Freedom Credit Card member you also get 15% discount every time

you rent a car from Hertz, the leading International Car Rental

Company.

Safe 'n' Secure

As a gesture of our concern for your well being, your Freedom Credit Card

offers you a host of Insurance covers, absolutely free. Getting you Big

Savings!

AVAILABILITY OF ABN AMRO CREDIT CARDS:

ABN AMRO has started its operations in about eleven(11) main cities of India

including the four(4) metros. Since its inception in the year 1920 with branches

only in Kolkata and Mumbai, it has spread its wings across the width and length of

the country.

The Delhi branch is functional from the year 2001. ABN AMRO was launched in

other cities throughout India between 1994 and 1999. Within five(5) years it

started operations in four(4) major cities of India. They were Chennai in 1994,

Pune in 1997 and Baroda in 1999, while the Hyderabad and Bangalore branches

were opened in 2001. The year 2002 saw the opening of the Noida office.

In total eighteen(18) branches are in operation throughout these eleven(11) cities.

Apart from the branches, ABN AMRO has also started its 24 hours banking

service through its ATM Centres. They have opened ATMs throughout nine (9)

cities which include New Delhi, Kolkata, Mumbai, Bangalore, Chennai, Noida,

Hyderabad, Baroda, Pune, across the country. These are providing excellent

functions and have proved to be very helpful for the customers easy access to

immediate money for 24 hours in 7 days.

T.V COMMERCIALS:

AD NO. 1:

A couple moving up the escalator Looking around the husband As they get ready to shop realizes the plethora of goodies in the

arcade…..

He tries to block his wife’s view She’s unable to figure out the strange from the display windows behaviour of her husband

MVO: Afraid, that your credit ... with flexilimit, that regulates your

Card will make you spend too credit limits and active alerts, for Much? Presenting the ABN regular alerts on spending. Now AMRO Freedom Credit Card… live without fear.

He voluntary offers her an ABN Super: Live without fear! AMRO card to shop.AD NO. 2:

Stopping in front of a shopping arcade, our protagonist debates...

... whether to go in. Just as he enters the mall, he puts on his blinkers...

... to protect himself from the mouthwatering deals all around.

The crowd notices our man trying hard to desist from shopping.

MVO: Afraid, that your credit card will make you spend too much? Presenting the ABN AMRO Freedom credit card...

... with flexilimit, that regulates your credit limit and active alerts, for regular alerts on spending. Now live without fear.

And he discards his blinkers in a bin.

Super: Live without fear!

A PRINT CAMPAIGN FOR CREDIT CARD OF ABN AMRO:

CREDIT CARDS OF HDFC:

To help the customers to keep up with the changing times, HDFC Bank offers the

finest payment solutions, internationally valid credit cards.

Specifically, the HDFC Bank Credit Cards are available as two variants, the HDFC

Bank International Silver Card and the HDFC Bank International Gold Card. In

addition, if you are a resident of Hyderabad, you get to choose the HDFC Bank

eSeva International Silver card also. This card has been designed specially for the

Hyderabad and has rich features brought to you in association with eSeva.

So whether you are a first time intender for a Credit Card or an extensive user, we

have a product for you. And, just like any other HDFC Bank product, these are

absolutely top of the line and best in class in their category.

You only have to use them to realise that they are packed with features that

discerning customers like yourself will value.

From the best insurance package to the most powerful Rewards Program and the

most attractive discount schemes, you will find everything you would naturally

expect from HDFC bank.

HDFC BANK LAUNCHES CREDIT CARD WITH E-SEVA:

On January 9, 2003, HDFC Bank launched a co-branded credit card with e-Seva, a

popular e-governance initiative from the Government of Andhra Pradesh in

Hyderabad. e-Seva is a one-stop point for services of various State and Central

government departments through a chain of computerised integrated citizen centres

(ICSCs) and the Internet.

"This is the first credit card designed by HDFC Bank exclusively for the residents

of Hyderabad. The features of the card were customised to the needs of the

residents of the emerging technology capital of India," according to the HDFC

Bank Managing Director, Mr Aditya Puri.

Addressing newspersons, Mr Puri said HDFC bank e-Seva International Credit

Card was a first of its kind product aimed at facilitating citizens' interaction with

the Andhra Pradesh Government.

According to the HDFC Bank Country Head, Card Products & NRI Services, Ms

Uma R. Krishnan, the co-branded card was an internationally valid VISA credit

card that could be used across 18 million merchant outlets in the country and

across the world, along with all other regular features offered by the bank on its

VISA cards.

On the exclusive features of the card, she said cardholders could pay their utility

bills such as electricity, water and sewerage bills, telephone bills, property taxes

and others by signing a one-time authorization to debit their card for utility bills

payments through e-Seva.

The cardholder earns two reward points on every Rs 100 spent on e-Seva or other

transactions, which can be redeemed towards gifts and utility bills at a later date.

Further, to provide more benefits to HDFC Bank e-Seva cardholders, the bank has

entered into alliances with 150 merchant establishments in the twin cities of

Hyderabad and Secunderabad and special partnerships with several brands and

companies.

The cardholders can avail of 10 per cent discount on apparel and house wear at

Giant, the hyper-market of the RPG group, 15 per cent discount on all out patient

investigations and 10 per cent discount on patient treatment at Apollo Hospitals, 20

per cent discount on preventive health checks, free post-paid connection and

waiver of up to Rs 1,250 on activation fee from Airtel, 15 per cent discount on

non-promotional and non MRP items at Pizza Corner, and 7.5 per cent discount on

entry fees and 10 per cent discount on hotel bills and merchandise at Ramoji Film

City, Ms Uma Krishnan said.

The HDFC Bank eSeva Credit Card has been designed exclusively for the

residents of Hyderabad. The card features have been customised to the needs of the

residents of the emerging Technology Capital of India. It offers you the best

features a card can provide along with the conveniences offered by a bank. Be it

low interest balance transfer facility or comprehensive insurance cover, each of its

features will help you manage your finances better and leave you free to live a

better life.

The HDFC Bank eSeva Credit has all the regular features of the HDFC Bank

International Silver Credit Card plus exclusive features like:

Hassle free payment - Sign up one-time for a Standing Instructions facility on your

eSeva card for any eSeva payments.

Reward Points - Save upto 2% as you spend - Earn 2 reward points on every

Rs.100 spent on eSeva or any other transactions. These points can be accumulated

and redeemed towards gifts and utility bills at a later date.

Preferred Partners -

Giant - Hyper-market of the RPG group -10% discount on Apparel and Household

goods

Apollo Hospitals -

15% discount on all Outpatient Investigations,

10% discount on Inpatient Treatment (exclusive of drugs, disposables and

professional fees),

20% discount on Preventive Health Checks.

Free subscription to Doctors at Home Services (payment per call only will be

charged at Rs. 250/-)

AirTel - 100% Activation fee waived on new postpaid connections.

Pizza Corner - 15% off on bills (not included on branded products sold within store

like cold drinks)

Ramoji Film City

7.5% off on entry fees.

10% Off on hotel bills and merchandise

FEATURE RICH CREDIT CARDS:

1. Balance Transfer at a lower interest rate

2. Hassle-free travel

3. Wide acceptance

4. Cash at your fingertips

5. Save while you spend (Reward Points)

6. Privileged Pricing on Loans

7. Repayments made easy

8. Protecting you through insurance

1. Balance Transfer at a lower interest rate

Most cards charge interest at the rate of 2.95% per month. Transfer the same

balance to HDFC Bank's credit card and you will pay interest at the rate of only

1.65% per month. For existing customers of HDFC Bank, we offer a special rate of

1.45% per month for 6 mo

2. Hassle-free travel

Travel bookings were never so easy. Dreams of a quiet family vacation are often

ruined by hassles of travel bookings. Now with the HDFC Bank eSeva Credit

Card, book your train and air tickets from the comfort of your home or office .

a) Train Bookings

Forget those long queues at railway ticket counters and enjoy the convenience of

booking train tickets from your home. Our tie-up with SITA Travels for booking of

train tickets, will ensure that you can now get train tickets delivered to you at your

home. Nominal cost for delivery is charged.

b) Airline Bookings

Avail a 3.5% discount on domestic and 5.5% discount on international travel as

also free home delivery on all your bookings as a valued HDFC Bank card holder.

3. Wide Acceptance

The HDFC bank credit card is one of the most widely accepted credit cards.

Accepted at over 110,000 merchant establishments across India and Nepal and

close to 18 million VISA accepting establishments around the world.

4. Cash At Your Fingertips

Step into any one of our 700 ATMs and withdraw cash upto 30% of your credit

limit. You may also use any of the VISA member ATMs for withdrawal at a very

nominal charge.

5. Save While You Spend

Spending has never been as much fun!! HDFC Bank's credit card revolutionizes

the meaning of the word spend. Here every purchase means a saving!

Earn 2 reward points for every Rs. 100 charged to your card. Save these points and

redeem them for exciting gifts and offers. What's more - you can save these reward

points upto 18 months

6. Privilege Pricing on Loans

As a HDFC Bank eSeva Credit Card holder you get loans from the bank at special rates. The rate

discount offered is as follows:

Loan Discount OfferedAuto Loans 0.5 %

Personal Loans 1 %Car Loans 1 %

Used Car Loans 1 %

7. Repayments Made Easy

Use any of the options given below to pay your credit card bills.

a) Through ATMs:

Walk in to any one of the 600 and more ATMs in India, at any time for paying

your credit card dues , either by cash or by cheque. If you have an account with

HDFC Bank, all you have to do is transfer the bill amount from your savings or

current account to your credit card account.

b) Through Net Banking:

If you have an account with HDFC Bank, and you are registered for HDFC Bank

NetBanking facility,all you have to do is transfer the bill amount from your savings

or current account to the card account on the Net, by quoting your 16-digit card

number.

8. Protecting You Through Insurance:

The HDFC Bank eSeva Credit Card offers the most comprehensive insurance

cover at no additional cost! Besides insuring your life against death due to an

accident it also protects you in the event of hospitalization.

a) In Case Of Death In An Accident:

If the card holder loses his life in an air accident, the nominated next of kin will

receive a compensation of Rs. 4 lakh. In case this happens in a rail or road

accident, the nominated kin will receive a compensation of Rs. 2 lakh.

b) Hospitalization Expenses Due To An Accident:

In case the cardholder is injured in an accident, hospitalisation expenses will be

covered upto a maximum of Rs. 25,000.

c) Purchase Protection:

All purchases made on the card are automatically insured against any loss or

damage due to burglary or fire. This insurance is valued up to a sum of Rs. 25,000

and is applicable for a 90-day period from the date of purchase.

HEALTH PLUS INTERNATIONAL CREDIT CARDS

In today’s fast paced life…

Do you—

Give priority to your family's health and fitness?

Get your Health Check-ups done regularly?

Worry about the increasing cost of quality health care?

The answer to this is that "A swipe a day keeps doctor away".

Introducing HDFC Bank Health Plus International Credit Card, in association with

National Insurance Company (NIC), a leading insurance service provider and in

affiliation with MasterCard, offers you India's first credit card with a free inbuilt

Cashless Mediclaim.

The card offers unparallel features. Be it cashless mediclaim facility, discounts at

leading hospitals, discounts from health and fitness related brands and an add-on

cover facility. Making it an unmatched product designed keeping your good health

in mind.

The HDFC Bank Health Plus Credit Card is a feature rich credit with unique

features like:

1.Cashless Mediclaim

2.Discounts at participating hospitals

3.Preferred partners for a healthy life

4.Give your family the extra benefit

1. Cashless Mediclaim

The card offers free mediclaim cover for Rs.50,000/- plus a critical illness

cover of Rs.1.5 lakhs. The critical illness cover includes open heart surgery

& CABG, Cancer, Kidney Failure and Vascular Stroke. With this cover you

can avail cashless mediclaim facility at any of the networked hospitals of the

Third Party Administrator (TPA) in any city.

2. Discounts at participating hospitals

With this card, the best of medical care would cost you less. Get fabulous

discounts on annual health check-ups, outpatient and inpatient investigations

in the participating hospitals in each city.

3. Preferred partners for a healthy life

HDFC Bank Health Plus Credit card offers unique discounts and offers from

leading health and fitness related brands.

4. Give your family the extra protection

a) Add-on Float Cover

You have the option of extending the Rs.50,000 mediclaim plus a critical

illness cover Rs.1.5 lakhs cover to the add-on cardholders, be it your

spouse, children, brothers or sisters.Whats more, the add-on cardholders

can avail the discounts at participating hospitals as well as with preferred

partners.

b) Purchase additional mediclaim

Provide extra cover for your family which includes your spouse, children,

parents, brothers or sisters by purchasing additional mediclaim at

fabulous discounts of more than 50%. Whats more, you can get tax break

under Section 80 D of the Income Tax Act. So what are you waiting for?

c) Life Insurance Cover

To overcome the uncertainties of life you need to plan ahead and create a

circle of protection for your family. With the HDFC Bank Health Plus

Credit card you can get your life insurance cover from Birla Sun Life

Insurance at exclusive premium rates.

FEATURE RICH CREDIT CARD:

1. Save while you spend (Reward Points)

2. Protecting through insurance

3. Balance Transfer at Lowest interest rates

4. Utility Bill payments made easy

5. Hassle Free Travel

6. Repaying Loyalty with interest

7. Wide acceptance

8. Cash at your fingertips

9. Add-on Cards

9. Privilege Pricing on Loans

1. Save While You Spend (Reward Points):

Use your credit card and earn reward points. For every Rs.100 spent using

your credit card earn 1 reward point. You can redeem the reward points for

house-holder's insurance which includes, fire insurance, burglary insurance

and breakdown insurance or for exciting gifts. What's more - you can save

the reward points upto 18 months.

2. Protecting Through Insurance:

The HDFC Bank Health Plus Credit Card offers you the most

comprehensive insurance package at no additional cost. In case of death in

an accident. If the cardholder loses his life in an air accident, the nominated

kin will receive a compensation of Rs.10 lakhs. In the case of a rail or road

accident the nominated kin will receive a compensation of Rs.2 lakhs.

3. Balance Transfer At Lowest Interest Rates:

Most cards charge interest at the rate of 2.95% per month. Transfer the same

balance to HDFC Bank's credit card and you will pay interest at the rate of

only 1.65% per month. For existing customers of HDFC Bank, we offer a

special rate of 1.45% per month for 6 months.Why pay more when you have

another way out ?

4.Utility Bill Payments Made Easy:

Bill Payments were never so easy. Call our 24-hour Customer Call center and

request a Pay Order / Demand Draft to be sent to you. Pay your insurance

premium, electricity / telephone / mobile bills using this service.

5.Hassle Free Travel:

Travel bookings were never so easy. Dreams of a quiet family vacation are

often ruined by hassles of travel bookings. Now with the HDFC Bank

International Health Plus Credit Card, book your train and air tickets from the

comfort of your home or office.

a) Train Bookings: Forget those long queues at railway ticket counters and

enjoy the convenience of booking train tickets from your home. Our tie-up

with SITA Travels for booking of train tickets, will ensure that you can now

get train tickets delivered to you at your home. Nominal cost for delivery is

charged.

b) Airline bookings: Avail a 3.5% discount on domestic and 5.5% discount on

international travel as also free home delivery on all your bookings as a

valued HDFC Bank card holder.

6.Repaying Loyalty With Interest:

This feature is unique to our card and has been designed as a token of

appreciation for the extended use of our card. The longer you are with us,

the lesser you have to pay. So on renewal, we reduce the interest rate on

your outstanding amount from 2.65% per month to 2.45% per month.

7. Wide Acceptance:

The HDFC bank credit card is one of the most widely accepted credit cards.

Accepted at over 110,000 outlets across India and Nepal and 23 million

Master Card accepting establishments across the world.

8. Cash At Your Fingertips:

Step into any one of their 615 ATMs and withdraw cash upto 30% of your

credit limit. You may also use any of the MASTER CARD member ATMs for

withdrawal at a very nominal charge.

9. Privilege Pricing on Loans:

As a HDFC Bank International Health Plus Credit Card holder you get loans from

the bank at special rates.

The rate discount offered is as follows:

LOAN DISCOUNT OFFERED

Auto Loans 0.5%Personal Loans 1%Car Loans 1%Used Car Loans 1%

INTERNATIONAL GOLD CREDIT CARD

Introducing the HDFC Bank International Gold Credit Card,customized to suit

your conveniences and make your lifestyle a truly cherishable golden experience.

FEATURE RICH CREDIT CARDS:

1. Recognised the world over

2. Cash Advance

3. Revolving credit facility

4. Interest Free Credit Period

5. Comprehensive Insurance

6. Travel Made Easy

7. Global Travel Related Insurance

8. International Business Travellers' Club (IBTC) Membership

9. Rewards Program

10.Financial Tracker

11.Utility Bill Payments Made Easy

12.Global Emergency Assistance services from VISA

1. Recognised the World Over:

The HDFC Bank International Gold Card is accepted at over 18 million VISA

Merchant Establishments around the world, including 110,000 Merchant

Establishments in India. So, now you don't need to carry large amounts of cash

while you shop, travel or entertain, making that purchase on impulse or a planned

one so much more convenient.

2. Cash Advance:

In a situation where you need cash, just step into any one of our ATMs or VISA

Member ATMs and withdraw cash upto 40% of your credit limit at a very nominal

charge.

3. Revolving Credit Facility:

Financial flexibility for managing your finances. The revolving credit gives you

the flexibility to handle credit card bills, depending on what your resources are for

that month. This feature allows you to pay a minimum amount, which is 5%

(subject to a minimum amount of Rs.200) of your total bill amount or any higher

amount whichever is convenient for you. You can then carry forward the balance

to a better financial month, for which you pay a charge of 2.65% per month.

4. Interest Free Credit Period:

Your Card now gets you the highest Free Credit Period of upto 55 days from the

date of purchase (subject to the submission of the charge by the Merchant).

Subsequently, if you carry forward your outstanding balance you just pay a

nominal interest of 2.65% p.m.

5. Comprehensive Insurance:

To show how much we care, we have provided insurance covers against the

various risks you might face. What's special is that the Add-on Cardmember gets

all the insurance covers with the same amounts as the Primary Cardmember.

a) Accidental Death: In case of death in an air accident your nominated next

of kin will receive a compensation of Rs.25,00,000. And in case of death in

a rail or road accident, your nominated next of kin will receive a

compensation of Rs.3,00,000.

b) Hospitalisation expenses due to an accident: This unique feature ensures

that your hospital bills won't leave you feeling sick. Let's say that you are

injured in an accident and need to be hospitalised. We will cover your

hospital expenses upto Rs.50,000 thereby reducing your inconvenience a

little.

c) Purchase Protection: All purchases made on your Card are automatically

insured against any loss or damage due to burglary or fire. This insurance is

valued upto a sum of Rs.50,000 and for a period of 180 days from the date

of purchase.

d) Household Insurance: As a HDFC Bank Gold Card member, you will be

covered against fire and burglary of your household contents upto Rs.75,

000.

6. Travel Made Easy:

Your Card offers you a host of travel-related benefits so that you can travel with

ease and comfort.

a) Air Ticketing: You can get a discount of 3.5% on domestic and 5.5% on

international air tickets and have the tickets delivered at your doorstep. All

you have to do is call our authorised travel agent and have them delivered at

your doorstep.

b) Rail Ticketing: Our tie-ups with an authorised travel agent(s) across the

country ensure that the tickets are delivered at your doorstep.* (subject to

their availability).

7. Global Travel Related Insurance:

To ensure a hassle free travel, a host of travel-related insurance covers are

provided on your card.

a) Loss of Baggage: Post the arrival of your flight, if your checked-in baggage

is reported lost/ misplaced, you would be reimbursed upto Rs.60,000 for

international flights and upto Rs.20,000 for domestic flights.  

b) Loss of Air Ticket: If you happen to lose your international Air ticket

during international travel, you would be reimbursed expenses incurred in

obtaining a new ticket upto Rs.10,000.

c) Loss of Passport: During international travel, if you happen to lose your

Passport/ Visa, you would be reimbursed expenses incurred in obtaining a

new Passport/ Visa subject to a limit of Rs.25,000.

8. International Business Travellers' Club (IBTC) Membership:

As our privileged customer, you shall now get a free International Business

Travellers' Club (IBTC) Blue Card membership which gets you discounts upto

50% at over 5500 star hotels worldwide and upto 25% on rentals of Hertz Rent-a-

Car at over 7500 locations worldwide.

9. Rewards Program:

Enjoy the benefits of our exciting Rewards Programme. You will earn 2 Rewards

Points for every Rs.100 spent on your Card. You can accumulate these Rewards

Points for a maximum of 18 months and redeem them for exciting gifts and offers,

as soon as you accumulate 1000 points. Please note that cash advances and other

fee charges do not qualify for the Rewards programme.

10.Financial Tracker:

At HDFC Bank Credit Cards, we understand that one of the your hallmarks is

smart management of finances. We will provide relevant information to help you

with your investment decisions. We will e-mail a daily update on the financial

markets. You will also be eligible for a special discount of 25% on our range of

advisory products comprising of a Monthly Model Portfolio Tracker, Monthly

Mutual Fund tracker and a daily financial newsletter.

11.Utility Bill Payments Made Easy:

Paying your insurance premium and electricity /telephone/mobile bills can become

easy. Just give us a call at our 24-hour Customer Call Center and request a

Demand Draft for the utility bill that you want. These payments will be deducted

from your available cash limit and will attract interest from the date of request.

12.Global Emergency Assistance services from VISA:

While traveling overseas, you have the option of utilizing the Global Emergency

Assistance Services* provided by Visa. These services can be availed for reporting

lost/stolen cards, requesting for an emergency card replacement or for an

emergency cash advance or for miscellaneous enquiries. The toll free telephone

numbers for accessing these emergency assistance Helplines are usually available

in local telephone directories/yellow pages and other local listings in each country.

INTERNATIONAL SILVER CREDIT CARD

The HDFC Bank International Silver Credit Card offers you the best features a

card can provide along with the conveniences offered by a bank. Be it low interest

balance transfer facility or comprehensive insurance cover, each of its features will

help you manage your finances better and leave you free to live a better life.

FEATURE RICH CREDIT CARDS:

1. Balance Transfer at a lower interest rate

2. Hassle-free travel

3. Utility bill payments made easy

4. Repaying loyalty with interest

5. Wide acceptance

6. Cash at your fingertips

7. Save while you spend (Reward Points)

8. Privileged Pricing on Loans

9. Repayments made easy

10. Protecting you through insurance

1. Balance Transfer At A Lower Interest Rate:

Most cards charge interest at the rate of 2.95% per month. Transfer the same

balance to HDFC Bank's credit card and you will pay interest at the rate of only

1.65% per month. For existing customers of HDFC Bank, we offer a special rate of

1.45% per month for 6 months

2. Hassle-Free Travel

Travel bookings were never so easy. Dreams of a quiet family vacation are often

ruined by hassles of travel bookings. Now with the HDFC Bank International

Silver Card, book your train and air tickets from the comfort of your home or

office.

a)Train Bookings: Forget those long queues at railway ticket counters and enjoy

the convenience of booking train tickets from your home. Our tie-up with SITA

Travels for booking of train tickets, will ensure that you can now get train tickets

delivered to you at your home. Nominal cost for delivery is charged.

b) Airline Bookings: Avail a 3.5% discount on domestic and 5.5% discount on

international travel as a valued HDFC Bank card holder.

3. Utility Bill Payments Made Easy:

Bill Payments were never so easy. Call our 24-hour Customer Call center and

request a Pay Order / Demand Draft to be sent to you. Pay your insurance

premium, electricity / telephone / mobile bills using this service.

4. Repaying loyalty with interest:

This feature is unique to our card and has been designed as a token of appreciation

for the extended use of our card. The longer you are with us, the lesser you have to

pay. So on renewal, we reduce the interest rate on your outstanding amount from

2.65% per month to 2.45% per month

5. Wide Acceptance:

The HDFC bank credit card is one of the most widely accepted credit cards.

Accepted at over 110,000 merchant establishments across India and Nepal and

close to 18 million VISA accepting establishments around the world

6. Cash At Your Fingertips:

Step into any one of our 615 ATMs and withdraw cash upto 30% of your credit

limit. You may also use any of the VISA member ATMs for withdrawal at a very

nominal charge.

7. Save While You Spend :

Spending has never been as much fun!! HDFC Bank's credit card revolutionizes

the meaning of the word spend. Here every purchase means a saving

Earn 2 reward points for every Rs. 100 charged to your card. Save these points and

redeem them for exciting gifts and offers. What's more - you can save these reward

points upto 18 months

8. Privilege Pricing On Loans:

As a HDFC Bank International Silver Credit Card holder you get loans from the bank at

special rates. The rate discount offered is as follows:

Loan Discount Offered

Auto Loans 0.5 %

Personal Loans 1 %

Car Loans 1 %

Used Car Loans 1 %

9. Repayments Made Easy:

Use any of the options given below to pay your credit card bills.

a) Through ATMs : Walk in to any one of the 600 and more ATMs in India, at

any time for paying your credit card dues , either by cash or by cheque. If you have

an account with HDFC Bank, all you have to do is transfer the bill amount from

your savings or current account to your credit card account.

b) Through NetBanking : If you have an account with HDFC Bank, and you are

registered for HDFC Bank NetBanking facility,all you have to do is transfer the

bill amount from your savings or current account to the card account on the Net, by

quoting your 16-digit card number.

10.Protecting You Through Insurance:

The HDFC Bank International Silver Credit Card offers the most comprehensive

insurance cover at no additional cost! Besides insuring your life against death due

to an accident it also protects you in the event of hospitalization.

a) In Case Of Death In An Accident: If the card holder loses his life in an air

accident, the nominated next of kin will receive a compensation of Rs. 4 lakh. In

case this happens in a rail or road accident, the nominated kin will receive a

compensation of Rs. 2 lakh.

b) Hospitalization Expenses Due To An Accident: In case the cardholder is

injured in an accident, hospitalisation expenses will be covered upto a maximum of

Rs. 25,000.

c) Purchase Protection: All purchases made on the card are automatically

insured against any loss or damage due to burglary or fire. This insurance is valued

up to a sum of Rs. 25,000 and is applicable for a 90-day period from the date of

purchase.

 

CREDIT CARDS OF ICICI:

Currently available to residents of Mumbai, Thane, Pune, Nasik, Delhi, Chennai,

Goa, Nagpur, Bangalore, Hyderabad, Calcutta, Baroda, Ahmedabad, Jaipur,

Manglore, Aurangabad, Coimbatore, Chandigarh, Ludhiana, Indore, Bhopal, Surat,

Anand, Jodhpur, Udaipur, Ambala, Panipat, Karnal, Patiala, Jallandhar, Trichy,

Salem, Erode, Madurai, Mysore, Vizag and Kochi only.

UNIQUE FEATURES OF ICICI CREDIT CARDS:

Facility to pay various utility bills online through credit card

• Bandhan: Self-set spending under the overall credit limit for both, the add-on and

primary card

•A "secure" net-based access.

• Balance transfer facility at the low rates of 1.5% - 1.75% per month and the

lowest service charges

• Comprehensive insurance policy, including a personal accident cover against

earthquakes, on both, add-on and primary cards

POWERFUL BENEFITS OF ICICI BANK CREDIT CARDS:

Bandhan:

One can freely present a maximum of two add-on cards to his wife, sister, brother,

parents or children above 18 years of age. To apply for this add-on card, referred to

as "Bandhan", just call the ICICI Bank 24-hour Customer Care Centre and place

your request with an executive. A form will be sent to you. Also if you have linked

your Credit Card with your Internet banking User-id then you can also place your

request for an add-on card online.

Balance Transfer Facility:

If you own Credit Cards issued by other banks and wish to apply for an ICICI

Bank Credit Card, you can transfer the outstanding balance from your other card(s)

on to the ICICI Bank Credit Card. This transferred outstanding will attract an

interest rate of just 1.75% for the Blue & Silver Cards and 1.50% in case of the

Gold Card. And what’s more, this beneficial rate of interest is applicable for six

months (this special interest rate will not be applicable for new purchases). You

can transfer any amount from a minimum of Rs 2,000 to a maximum 75% of the

available credit limit on your ICICI Bank Credit Card.

Travel Benefits:

Now you can leave your travel and hotel bookings to us. All you need to do is call

the local travel office of Cox & Kings in your city to take care of all your travel

needs – be it business or leisure travel. All your railway and airline reservations,

hotel bookings, car rentals and even travel-related documentation will be taken

care of.

That's not all. We offer you a substantial discount of 2.5%* on basic domestic

airfares and 4.5%* on basic international airfares. All you need to do is to book

your tickets through Cox & Kings and charge it to your ICICI Bank Credit Card.

Insurance Benefits on an ICICI Bank Credit Card:

Life is unpredictable and we at ICICI Bank understand your concern for your

family. Insurance is by far the best way to safeguard the interests of your family.

And therefore in addition to any insurance cover you already have, ICICI Bank

offers you the most comprehensive insurance - related benefits. Of course we offer

you accident insurance, but in addition we also offer you credit shield, purchase

protection, baggage insurance, hospitalisation and household insurance.

Wide Acceptance:

ICICI Bank Blue Cards are welcomed at all Merchant Establishments displaying

the VISA logo - over 1,10,000 and MasterCard logo - over 77,000 establishments

across India and Nepal and the Silver and Gold cards are accepted globally by over

20 million VISA Card and 22 million MasterCard accepting establishments.

Statement By e-mail And Mobile Alerts:

Statement Online is a very simple, powerful and convenient way to view your

Credit Card statement details instantly without any postal delays. Just sign up for

Statement Online and get faster, reliable access to your Account Statement. Mobile

alerts from ICICI Bank provides you with information on your ICICI Bank Credit

Card even when you are on the move. You would now no longer miss a payment

or exhaust your credit limit without a warning. Currently customers having Internet

Banking user-ids can subscribe to the alerts.

Earn while you spend - ICICI Bank Credit Card Rewards Plus Program:

A special bonus plan that allows you to earn points every time you use your Card,

Every Rs. 100 that you spend earns you 1 point. The redemption of reward points

can be done against the products, services in the rewards catalogue or against your

renewal fees.

Self-Set Limit:

The only card that allows you to pre-define your own credit limits. You can request

for a limit lower than what your are eligible for. You can even preset the monthly

spending limits on the "Bandhan" card. Any transactions over the specified 'Spend

Limit' will be declined.

This monthly spending limit can be reset every billing cycle by just calling the

ICICI Bank 24-hour Customer Care Centre and place your request with the

executive. Your spend limit will be changed on-line and come in to force from the

next billing cycle.

Cash Advance Facility:

With an ICICI Bank Credit Card in your wallet, you will not be strapped for cash

ever again. You can withdraw cash on your Card, 24-hours a day from any VISA

and MasterCard participating member bank ATM. During banking hours you can

also draw cash over-the-counter, from any ICICI Bank branch in cities where the

ICICI Bank Credit Card has been introduced.

ICICI Bank Gold American Express Card

A Privilege Card - Own the most powerful and exclusive International Gold Card

powered by American Express services worldwide and enjoy exclusive benefits

available only to select.

Exclusive Benefits:

Most powerful catalogue based Rewards Program - Earn 1 reward points on

every Rs. 25 you spend.

Emergency Assist services (Medical, Legal, Personal and Travel services)

by American Express Global network.

0% fuel surcharge

Exclusive Membership Privileges- special offers in retail, travel and dining

when purchases are made with an American Express Card.

Highest Personal Accident Insurance upto Rs. 40 lakhs.

Discount of 5% on international and 3 % on domestic air travel bookings by

BTI-Sita.

Lodging Offer- complimentary room upgrade in any Le Meridian group of

hotels and free spouse stay.

Travel Offer - By China Airlines (Option A:Free Business class ticket to

your companion if traveling to US/Canada, Option B: Upto 50% off on

business class airfare to your companion if traveling to Asia pacific).

American Express Travelers Cheque and foreign exchange easily available

through American Express Travel Service locations free of commissions.

Other Benefits:

High credit limits.

Comprehensive insurance on international travel (Baggage loss, loss of

travel documents, delay in flight, hijack cover).

Household insurance upto Rs.75,000.

Hospitalisation Benefit policy upto Rs.50,000.

Purchase protection of Rs.40,000.

Credit Shield of Rs.50,000.

Zero lost card liability.

Complimentary Teleoptima Global Calling Card.

ICICI Bank - American Express Card:

The true Companion - The most powerful International Classic Card powered by

American Express services worldwide and rewarding generously on your spends.

Exclusive Benefits:

Most powerful catalogue based rewards Program - Earn 1reward points on

every Rs. 40 you spend.

Basic Assist services (Medical, Legal, Personal and Travel) by American

Express Global network.

0% fuel surcharge

Exclusive Membership Privileges - special offers in retail, travel and dining

when purchases are made with an American Express Card.

Comprehensive Personal Accident Insurance upto Rs. 15 lakhs.

Discount of 5% on international and 3 % on domestic air travel bookings

American Express Travelers Cheque and foreign exchange easily available

through American Express Travel Service locations free of commissions.

Other Benefits:

High credit limits.

Comprehensive insurance on international travel (Baggage loss, loss of

travel documents, delay in flight, hijack cover).

Household insurance upto Rs.20,000.

Hospitalisation Benefit policy upto Rs.25,000.

Purchase protection of Rs.20,000.

Credit Shield of Rs.25,000.

Zero lost card liability.

Complimentary Teleoptima Global Calling Card.

ICICI Bank Solid Gold Credit Card:

Exclusive Benefits:

Welcomed internationally at over 22 million merchant establishments.

High credit and cash limits.

Dial a draft free.

Balance transfer at 1.5%.

Zero lost card liability.

Complimentary Global One Calling Card.

Access to Global Customer Assistance Services.

Purchase protection of Rs.40,000.

Credit Shield of Rs.50,000.

Most powerful catalogue based rewards Program.

Comprehensive Travel Benefits.

Comprehensive Insurance for both primary and add-on cards upto Rs. 20

lakhs.

Household insurance upto Rs.75,000.

ICICI Bank - HPCL Gold Credit Card

India's first intelligent Credit Card with a microchip

Exclusive Benefits:

Earn and Redeem rewards points directly at select HPCL Petrol Pumps for

free fuel.

Option of redeeming rewards points in bookshops, jewellery, stores for

rewards of your choice soon.

Earn upto 15 reward points for every Rs.100/- spent at partner outlets.

Refund of Surcharges (2.5%) on Fuel Purchases.

Exciting rewards Program - Speed'o'Miles - 2 points for every Rs.125/- spent

at HP Petrol Pumps.

15% discount on P.U.C check and Labour charges at select HPCL Petrol

Pumps.

Discount on tyres, batteries and auto accessories sold at select HPCL Petrol

Pumps.

Welcomed internationally at over 22 million merchant establishments.

High credit and cash limits.

Dial a draft free.

Balance transfer at 1.5%.

Zero lost card liability.

Complimentary Global One Calling Card. Access to Global Customer

Assistance Services.

Purchase protection of Rs.40,000.

Credit Shield of Rs.50,000.

Comprehensive Travel Benefits.

Comprehensive Insurance for both primary and add-on cards upto Rs. 20

lakhs.

Household insurance upto Rs.75,000.

Baggage insurance upto Rs. 25,000.

Hospitalisation Benefit policy upto Rs.50,000.

Mobile Alerts and Statement by E-mail

ICICI Bank Sterling Silver Credit Card

A Card that offers special benefits to all members of a family starting with a Free

"Bandhan" add-on card.

Exclusive Benefits:

Comprehensive Insurance for both primary and add-on cards upto Rs. 10

lakhs.

Household insurance upto Rs.20,000.

Baggage insurance upto Rs. 10000.

Hospitalisation Benefit policy upto Rs.25,000.

Purchase protection of Rs.20,000.

Credit Shield of Rs.25,000.

Comprehensive travel related insurance.

Zero Lost card liability.

Dial a draft at 1%.

Balance transfer at 1.75%.

Most powerful catalogue based rewards Program.

ICICI Bank - HPCL Silver Credit Card:

Load up your tank with Free Fuel

Exclusive Benefits:

Refund of Surcharges (2.5%) on Fuel Purchases.

Exciting rewards Program - Speed'o'Miles - 2 points for every Rs.125/- spent

at HP Petrol Pumps.

15% discount on P.U.C check and Labour charges at select HPCL Petrol

Pumps.

Discount on tyres, batteries and auto accessories sold at select HPCL Petrol

Pumps.

Comprehensive Insurance for both primary and add-on cards upto Rs. 10

lakhs.

Household insurance upto Rs.20,000.

Baggage insurance upto Rs. 10000.

Hospitalisation Benefit policy upto Rs.25,000.

Purchase protection of Rs.20,000.

Credit Shield of Rs.25,000.

Comprehensive travel related insurance.

Zero Lost card liability.

Dial a draft at 1% fee.

Balance transfer at 1.75%.

Most powerful catalogue based rewards Program.

Comprehensive Travel Benefits.

Accepted at over 22 million merchant establishments globally.

Complimentary Global One Calling Card.

Mobile Alerts and Statement by E-mail

ICICI Bank True Blue Credit Card:

India's first value for money card. A no-frills card packed with benefits that matter.

Exclusive Benefits:

Predefine your own spend limits.

Visa and MasterCard acceptability across 1,10,000 merchant establishments

in India.

Dial a draft at 1%.

Balance transfer at 1.75%

Purchase protection of Rs.10,000.

Credit shield of Rs.10,000.

Most powerful catalogue based rewards Program.

Comprehensive Travel Benefits.

Personal Accident Insurance of Rs.3 lakhs (air) and Rs. 1 lakh (any other

accident).

Access to 24-hour Customer Care Centre and all VISA and MasterCard

approved ATMS

ICICI Bank - BPL Mobile Credit Card:

Stay connected with Easy Pay and free airtime

Exclusive Benefits:

Easy Pay Facility - Debit BPL Mobile bills on the card.

Earn reward points and redeem against free airtime.

Free one year mobile phone insurance against loss, theft or damage.

Free voice mail FREE on BPL Mobile for the first six months of card

membership (Valid in Mumbai) .

Roam Free National facility at no additional deposit (Valid in Tamil Nadu

excluding Chennai, Pondicherry, Maharahtra excluding Mumbai, Goa and

Kerala).

Comprehensive Insurance for both primary and add-on cards upto Rs. 10

lakhs.

Household insurance upto Rs.20,000.

Baggage insurance upto Rs. 10000.

Hospitalisation Benefit policy upto Rs.25,000.

Purchase protection of Rs.20,000.

Credit Shield of Rs.25,000.

Comprehensive travel related insurance.

Zero Lost card liability.

Dial a draft at 1% fee.

Balance transfer at 1.75%.

Most powerful catalogue based rewards Program.

Comprehensive Travel Benefits.

Accepted at over 22 million merchant establishments globally.

Complimentary Global One Calling Card.

Mobile Alerts and Statement by E-mail

ICICI PRU life Credit Card: India's First Life Insurance Credit Card:

An exclusive Credit Card for ICICI Prudential Policy Holders

Currently available only in the cities of Mumbai, Delhi, Chennai, Kolkata,

Bangalore, Hyderabad and Pune.

Exclusive benefits available on your ICICI PRU life Credit card:

The Monthly Interest Rate for the credit card is 1.95%.

1 Reward Point for every Rs 100 of premium paid through the co-branded

card.

50 Reward Points on first time usage.

50 Reward Points as a one-time bonus, on renewal of the policy on the credit

card. This is payable at the time of renewal of policy on the card.

Special discount at Apollo Hospitals:

10% discount on all lab investigations

10% discount on Imaging services (MRI, CT SCAN, Nuclear

medicine and Angiogram)

10% discount on DOST policy*

10% discount on AASHIRWAAD**

Extra discount at select merchants across top cities.

The Reward Points accumulated by the holder of the co-branded credit card

can be redeemed against future premium payments as well. The customer

can also redeem his points against the Redemption Program of ICICI Bank.

* 'Dost' is an Accident-cum-Medical benefit insurance policy developed by

Apollo Hospitals in association with Family Health Plan and National Insurance

Company

**Special Health Plan for the elderly, provided by Apollo hospitals.

Other Benefits Available On ICICI Pru Life Credit Card:

1 Reward Point for every Rs 100 of retail spend on the credit card.

Comprehensive Insurance for both primary and add-on cards upto Rs. 10

lakhs.

Household insurance upto Rs.20, 000.

Baggage insurance upto Rs. 10,000.

Hospitalization Benefit policy upto Rs.25, 000.

Purchase protection of Rs.20, 000.

Credit Shield of Rs.25, 000.

Comprehensive travel related insurance.

Zero Lost card liability.

Dial a draft at 1% fee.

Balance transfer at 1.75%.

Comprehensive Travel Benefits.

Accepted at over 22 million merchant establishments globally.

Complimentary Tele Optima Calling Card

TV COMMERCIAL:

An old woman tells her daughter about their neighbour's plans for going to Haridvar.

"Ab is umar mein kya jaayenge? You want to ka matlab nahin you have to", continues the mother.

While the young woman, with her ICICI credit card, books tickets for her, online.

As the older woman takes a peek at the screen, she is pleasantly surprised.

The site downloads and the super reads, 'Haridwar in a week.' As the daughter tries to convince

...the MVO adds "ICICI Credit cards. The power to give your loved ones what they really,

her... really want."

COMPARISON BETWEEN ABN AMRO BANK & ICICI BANK:

 

ABN AMRO ABN AMROFreedom Mastercard (International Credit Card)

Smart Gold Card Mastercard (International Credit Card)

Minimum Income Eligibility Self - Employed (in Rs. p.a.) 84,000.00 1,50,000.00Salaried (in Rs. p.a.) 84,000.00 1,50,000.00

Fee Details Joining Fees (in Rs.) N.A. 500.00Annual Fees (in Rs. p.a) 595.00 2,000.00Add-On Card Fees (in Rs. P.a) N.A. N.A.

Other Charges Dial a Draft Fee (in Rs.) 100.00 100.00Over Limit Fees (in Rs.) N.A. N.A.

Credit Details Interest Rate (% p.m) 2.89 2.49Effective Interest Rate Per Annum (in %) N.A. N.A.Maximum Credit Period in Days 50 50Minimum Payment Due 200.00 200.00Late Payment Charges 2.89 2.49

Cash Advance Details Transaction Fee 100.00 100.00Interest Rate (% p.m) 2.5 2.5Cash Advance (% of the credit limit) 30 30Maximum Withdrawal per day (in Rs.) N.A. N.A.

Rewards To Earn One Point Spend Rs. 50.00 50.00

Reach ATM Outlets 650000 650000Merchant outlets 2900 2900

Lost Card Liability Before reporting loss (in Rs.) N.A. N.A.After reporting loss (in Rs.) N.A. N.A.

Insurance

Air accident Cover (in Rs.) 6,00,000.00 15,00,000.00General Accident Cover (in Rs.) 1,00,000.00 5,00,000.00Household Insurance (in Rs.) N.A. N.A.Baggage Lost (in Rs.) N.A. N.A.Baggage Delayed (in Rs.) N.A. 3,000.00Credit Shield on death (in Rs.) 15,000.00 40,000.00Purchase Protection Cover (in Rs.) 20,000.00 50,000.00Additional Insurance Available 5000 10000

Special Features

3.5 % discount on domestic tickets, 6% discount on international tickets, Banlance Transfer Facility @ 1.49 % pm, Flexilimit, Active Alerts, Year End Summary Statement

3.5 % discount on domestic tickets, 6% discount on international tickets, Banlance Transfer Facility @ 0.99 % pm, Flexilimit, Active Alerts, Year End Summary Statement

ICICI:  ICICI BANK ICICI BANK ICICI BANK

True Blue Visa

(International Credit Card)

Sterling Silver Visa

(International Credit Card)

Solid Gold Visa

(International Credit Card)

Minimum Income Eligibility Self - Employed (in Rs. p.a.) 50,000.00 50,000.00 1,00,000.00

Salaried (in Rs. p.a.) 60,000.00 60,000.00 1,20,000.00Fee Details

Joining Fees (in Rs.) 100.00 150.00 300.00Annual Fees (in Rs. p.a) 300.00 600.00 1,200.00Add-On Card Fees (in Rs. p.a) 150.00 300.00 600.00

Other Charges Dial a Draft Fee (in Rs.) N.A. N.A. N.A.Over Limit Fees (in Rs.) N.A. N.A. N.A.

Credit Details Interest Rate (% p.m) 2.95 2.5 2.5Effective Interest Rate Per Annum (in %) 41.75 34.5 34.5

Maximum Credit Period in Days 50 50 52

Minimum Payment Due 5.00 5.00 5.00Late Payment Charges 100.00 100.00 100.00

Cash Advance Details Transaction Fee 2.95 2.50 2.50Interest Rate (% p.m) 2.95 2.5 2.5Cash Advance (% of the credit limit) 20 20 20

Maximum Withdrawal per day (in Rs.) N.A. N.A. N.A.

Rewards To Earn One Point Spend Rs. 100.00 100.00 100.00

Reach ATM Outlets 500000 500000 500000Merchant outlets 110000 110000 110000

Lost Card Liability Before reporting loss (in Rs.) N.A. N.A. N.A.

After reporting loss (in Rs.) N.A. N.A. N.A.

Insurance Air accident Cover (in Rs.) 3,00,000.00 6,00,000.00 15,00,000.00

General Accident Cover (in Rs.) 1,00,000.00 2,00,000.00 5,00,000.00

Household Insurance (in Rs.) N.A. 50,000.00 1,00,000.00

Baggage Lost (in Rs.) 25,000.00 N.A. 25,000.00Baggage Delayed (in Rs.) N.A. N.A. N.A.

Credit Shield on death (in Rs.) 10,000.00 25,000.00 50,000.00

Purchase Protection Cover (in Rs.) 10,000.00 20,000.00 40,000.00

Additional Insurance Available N.A. N.A. N.A.

Special Features N.A. N.A. N.A.

CAR LOANS FROM ABN AMRO BANK:

Today if you are looking at a brand new car, then it does make good business sense

to consider a car loan. Not an ordinary car loan with complex formalities and

intimidating requirements but an ABN AMRO Car Loan. A loan that works much

like your dream car: fast, cost-efficient and user-friendly.

ABN-AMRO BANK has also introduced its Car Loans scheme in which it

provides loans for three different categories of cars:

Standard

Premium

Luxury

SEGMENTATION OF CARS:

Standard Cars Premiun Cars Luxury Cars

MARUTI800

MARUTIZEN

MARUTIGYPSY

MARUTIOMNI

MARUTIWAGONR

FIATUNO

AMBASADORNOVA/ISUZU

DAEWOOMATIZ

HYUNDAISANTRO

TATAINDICA

MARUTIESTEEM

MARUTIBALENO

MARUTI1000

FIATSIENNA

TATASIERRA

TATASUMO

TATASAFARI

TOYOTAQUALIS

DAEWOOCIELO

EXECUTIVE

DAEWOONEXIA

OPELASTRA

OPELCORSA

MAHINDRAARMADA

FORDIKON

HYUNDAIACCENT

MITSUBISHILANCER

HONDACITY

MERCEDES CAR

THE PRICING STRATEGY:

The Car loans are designed such that they have easy and convenient

EMI’s i.e. Equated Monthly Installments. A certain amount of loan is

given according to the credit history of the customer and with respect to

the EMI scheme he is willing to adopt. Thus, for instance, for a Qualis,

the scheme is:

EMI for 5 years: 10,311/-

Loan Amount: 4,61,000/-

And for Alto Lx:

EMI for 5 years: 5,915/-

Loan Amount: 2,51,000/-

There are essentially 2 payment systems:

a. Step –up – where the EMI increases every year by a certain interest

rate and therefore the amount paid increases gradually.

b. Step – Down – Where the EMI reduces every year by a certain

interest; thus the customer has to pay larger amounts initially.

Loan Amount:

The car loans are offered to individuals as well as companies.

The loans cover up to 90% of ex-showroom price for new cars and 75% of

value (as determined by bank) on used cars.

The minimum loan amount is Rs. 50,000. The maximum loan amount is

based on a percentage of car value as given below:

Interest Rates:

Interest rates for standard cars vary from 17% to 18%.

Interest rates for premium cars varies from 16.75% to 18%

Maximum loan amounts as a percentage of the ex-

showroom price of the new car

Eligible cars

Up to 90%

Maruti 800, Maruti Esteem 1300 cc, Maruti Zen, Maruti Omni Van, Maruti Baleno, Maruti WagonR, Maruti Alto, Fiat Siena, Toyota Qualis, Daewoo Matiz, Mercedes Benz E Class, Opel Astra, Opel Corsa, Ford Ikon, Hyundai Santro, Hyundai Accent, Mitsubishi Lancer, Tata Indica, Honda City

Up to 85% Maruti Baleno Altura, Fiat Uno, Fiat Siena Weekend

Up to 80% Tata Safari, Daewoo Cielo, Daewoo Nexia, Mahindra Bolero

Up to 75% Maruti Gypsy, Ambassador Nova Isuzu, Tata Siera, Tata Sumo, Mahindra Armada

Up to 70% Mercedes Benz S Class

ABN Amro offers 2 payment plans. The EMI you pay is a function of the

loan amount, the payment plan, the tenure and the applicable interest rate. It

may be as low as Rs. 2325/- per lac on a 5 year loan, or Rs. 3425/- per lac

for a 3 year loan, depending on the applicable interest rate.

The details of which are as follows:

[A] ARREARS (CLASSIC)

EMI starts from the first of the month following the disbursal month for loans

booked between 1st and 15th of a month. EMI starts from the 16th of the

month following the disbursal month for loans booked between 16th and 31st

of a month.

[B] ADVANCED EMI

(i) Variant 1: Customer pays the 1st EMI in advance along with the loan

application to the dealer. The advantage being EMI per lakh, being less than,

the arrears scheme.

(ii) Variant 2: Customer pays the 1st EMI in advance along with the loan

application to the bank. In this case the EMI per lakh being the same as the

arrears scheme.

[C] PREPAYMENT OPTIONS

(i) Partial Pre-payment: This facility allows the customer to pay off the loan

partially. There is no lock-in period for the loan amount. This option is allowed

once every calendar year. There are zero prepayment charges for payment upto

25% of the loan outstanding. This facility is allowed from the beginning of the

loan.

(ii) Full Pre-payment: This facility allows customers to fully prepay the loan on a

minimal prepayment charges from day 1. A charge of 4% is levied on 75% of

the outstanding balance, provided the 25% prepayment facility has not been

availed in that calendar year. No charges are levied on complete prepayment

after three (3) years (provided all EMIs are paid satisfactorily)

At the time of disbursing your loan, the Bank collects EMI payments in the

form of post-dated cheques or Standing Instructions (only for ABN AMRO

Savings or Current Account customers with a minimum relationship of 6

months) or Electronic Clearing System (ECS) instructions on other bank

accounts.

Payment plans on ABN AMRO Car Loans, can be customized by our

representative to suit your requirements. You can choose from Arrears and

Advance installment plans. Salaried and Self-Employed individuals can also

opt for alternate payment plans in which the monthly installments either

grow, each year (Step-up payment plan) or decline each year (Step-down

installment plan).

 Tenor:

Options are available where you can pay back the loan by way of monthly installments

spread over a period ranging from 1 year to 5 years.

Eligibility:

Salaried Individual: Gross Annual Income should be above Rs. 60,000 for

standard cars and above Rs.1, 00,000 for premium cars.

Self Employed: Individual If you are a proprietor, a partner, a professional,

or a director, with a Gross Annual Income of Rs. 60,000 for standard cars

and above Rs.1, 00,000 for premium cars, you are eligible to apply for an

ABN Amro Car Loan.

Partnership Firm: Gross Annual Income should be above Rs. 60,000 for

standard cars and above Rs.1, 00,000 for premium cars.

Private or Public Limited Company: Private Limited Companies should

have been in existence for at least 2 years and have a minimum PAT of Rs.

60,000 for a standard car or a minimum PAT of Rs. 1,00,000 for a premium

car. Public Limited Companies should have been in existence for at least 2

years and have a minimum PAT of Rs.60, 000 for a standard car or a

minimum PAT of Rs.1, 00,000 for a premium car.

Documentation:

For Salaried Individuals / Self employed / Sole proprietorship: -

Application Form

Photograph

Bank signature verification

Income Proof (Any one of the following)

ITR (Income tax returns)

Form 16

Salary Slip

Appointment letters

Identity Proof (Any one of the following)

Laminated Driving License

Voters' Identity Card

Passport

PAN Card

Photo Credit Card/

Photo Ration Card

For partnership companies: -

Identity Proof: Certified true copy of partnership deed evidencing 3 years

of existence.

Income proof: Certified true copy of audited balance sheet and profit and

loss statement for last 2 years or CPA certified true copy of unaudited

balance sheet and profit and loss statement along with IT returns.

For Limited companies: -

Identity Proof: Certified true copy of memorandum and articles of

association and copy of certificate of incorporation.

Income Proof: Audited balance sheet and profit and loss statements for the

latest and previous financial year.

THE PROMOTIONAL STRATEGY:

ABN has a relatively well-developed promotional strategy for the Car loans

product.

Aggressive mailing activities for specific customers are presently carried out.

Various auto loan melas and road shows have been organized in the major cities of

the country where information was distributed.

The promotional strategy is quite uniform through the various regions and the

message is kept consistent. There is however lesser centralized promotion of ABN

as a bank and this factor needs to be worked on.

THE PROCESS:

The process of getting a loan along with the approval takes

approximately 3-4 days at the most. The documents of the customer go

through a procedure of verification.

Stepwise description is given below:

Customer goes to the external agency

External Agency receives the application form, income documents,

photos, and home office address.

Information goes to the credit department – Decision takes place here.

The bank informed of approval

Amount sanctioned

Central processing agency informed

Bank processing of the loan

Loan boarded

Cheque goes to direct sales agents

Car handed over to customer

THE ADVERTISING STRATEGY:

This has been a very aggressive realm in ABN’s business. Numerous ads

are seen in various newspapers such as Financial Express, TOI, ET, HT,

etc., generally, the green and yellow ABN theme is portrayed, adding to

the ABN identity as a distinct entity.

The medium used by ABN is essentially the newspapers and street lamp posters

that exhibit the ABN logo.

The ads generally feature the direct sales agent linked to ABN, the

various cars under the scheme and the scheme details specifically: The

target being the middle and upper classes. The ad dated 8 th May 01

features the Car loan scheme in conjunction with holiday packages,

discounts etc., and adding further value to the overall car loan concept.

The advertising strategy and the scheme need to be even more attractive

and creative as the environment is highly competitive.

CUSTOMER CARE

AND

CUSTOMER RELATIONSHIP MANAGEMENT (CRM):

CRM is today by far one the most relevant issues for all the banks. ABN

too has laid great focus on CRM and on building long-term relation with

its customer. The aim is to personalize the Car loans services so as to

allow every man’s dream of owning a car come true. This is not all;

various value addition schemes are introduced by ABN in order to pass

on the benefits to the customers.

Therefore, they don’t just get a Car loan, but get a package deal so to

speak! Constant newsletter and feedback form are mailed to existing

customer in order to build loyalty.

RELEVANCE OF PLACE/LOCATION:

It is relevant to be at the right place, at the right time, ABN believes in this theory

as well! The locations of the Car Loan stalls and the Branches are such that it is

easily accessible for the public to map the benefits of the schemes offered. The

important market areas are generally selected for the car loan melas and road

shows. Other than loans are available in 7 branches, which are, spread throughout

the country. These include:

Mumbai,

Delhi,

Calcutta,

Chennai,

Pune, and

Baroda.

For salaried persons, ABN Amro bank has two categories of eligible employers on

which a person is given loan and the eligibility varies,

Category A and

Category B.

CAR LOANS FROM HDFC BANK:

HDFC Bank offers car finance for all the following categories of cars: Standard

Premium

Luxury

PRODUCT & ITS OFFERINGS:

The car loans are offered to individuals as well as companies.

The loans cover up to 90% of ex-showroom price for new cars as well as

used cars (valuation based on bank recommendations).

Options are available where you can pay back the loan by way of

monthly installments spread over a period ranging from 1 year to 5 years.

ELIGIBILITY:

For salaried individuals:

Minimum age of Applicant: 21 years

Maximum age of Applicant at loan maturity: 58 years

Minimum employment: 1 year in current employment and minimum

2 years of employment

Minimum Annual Income: Rs 100000 net annual income

Telephone: Must at residence

For self employed:

Minimum age of Applicant: 21 years

Maximum age of Applicant at loan maturity: 65 years

Minimum employment: Atleast 3 years in business

Minimum Annual Income: Net profit Rs. 60000 p.a for standard cars

and Rs.100000 p a for mid-sized and premium cars

Telephone: Must at residence

For partnership firms:

Minimum Income: Net profit Rs. 60000 p.a for standard cars and

Rs.100000 p a for mid-sized and premium cars

Minimum turnover: Turnover Rs 4.5 lacs

Telephone: One phone at least at business and at residence of the

loan executing partner

For private limited company:

Minimum Income: Net profit Rs. 60000 p.a for standard cars and

Rs.100000 p a for mid-sized and premium cars

Minimum turnover: Turnover Rs 4.5 lacs Telephone: One phone at

least at business premises

For public limited company:

Minimum Income: Net profit Rs. 60000 p.a for standard cars and

Rs.100000 p a for mid-sized and premium cars

Minimum turnover: Turnover Rs 4.5 lacs

Telephone: One phone at least at business premises

DOCUMENTATION:

For salaried individuals:

Proof of Identity:- Passport copy, PAN Card, Voters Id car, driving

license( Laminated, Recent , Legible)

Income Proof:- Latest salary slip with form 16.

Address Proof:- Ration card/Driving license/Voters card/passport

copy/telephone bill/ electricity bill/Life insurance policy PAN Card.

Bank Statement:- Not mandatory

For self employed:

Proof of Identity:- Passport copy, PAN Card, Voters Id car, driving

license( Laminated, Recent , Legible)

Income Proof:- Latest ITR

Address Proof:- Ration card/Driving license/Voters card/passport

copy/telephone bill/ electricity bill/Life insurance policy PAN Card.

Bank Statement:- Waived for small cars, for mid - sized and premium

cars if income Is greater than Rs 1.5 lacs then bank statement

requirement can be waived.

For partnership firms:

Proof of Identity:- NA

Income Proof:- Audited balance sheet, Profit & loss Account for

latest two years and the latest 2 years IT returns of the company

Address Proof:- Telephone Bill/Electricity Bill/Shop &

Establishment Act certificate/SSI registered certificate/Sales Tax

certificate.

Bank Statement:- Waived for small cars, for mid - sized and premium

cars if income Is greater than Rs 1.5 lacs then bank statement

requirement can be waived.

For private limited company:

Proof of Identity:- NA

Income Proof:- Audited balance sheet, Profit & loss Account for

latest two years and the latest 2 years IT returns of the company

Address Proof:- Telephone Bill/Electricity Bill/Shop &

Establishment Act certificate/SSI registered certificate/Sales Tax

certificate

Bank Statement:- NA

For public limited company:

Proof of Identity:- NA

Income Proof:- Audited balance sheet, Profit & loss Account for

latest two years

Address Proof:- Telephone Bill/Electricity Bill/Shop &

Establishment Act certificate/SSI registered certificate/Sales Tax

certificate

Bank Statement:- NA

For Salaried Individuals / Self employed / Sole proprietorship

Application Form

Photograph

Bank signature verification

Income Proof (Any one of the following)

ITR ( Income tax returns )

Form 16

Salary Slip

Appointment letters

Identity Proof (Any one of the following )

Laminated Driving License

Voters' Identity Card

Passport

PAN Card

Photo Credit Card/

Photo Ration Card

For partnership companies

Identity Proof : Certified true copy of partnership deed evidencing 3

years of existence.

Income proof : Certified true copy of audited balance sheet and profit

and loss statement for last 2 years or CPA certified Certified true copy

of unaudited balance sheet and profit and loss statement along with IT

returns.

For Limited companies

Identity Proof : Certified true copy of memorandum and articles of

association and copy of certificate of incorporation.

Income proof : Audited balance sheet and profit and loss statements

for the latest and previous financial year.

PRICING STRATEGIES

INTEREST RATEInterest rates vary from 16% for new cars to 21% for used cars.

a) LOAN TO VALUE%

MODEL 12m 24m 36m 48m 60m

MARUTI 800 90% 90% 90% 85% 85%

MARUTI OMNI 85% 85% 85% 80% 80%

MARUTI ZEN 90% 90% 90% 85% 85%

MARUTI ESTEEM 85% 80% 80% 75% 70%

HONDA CITY 85% 85% 85% 80% 75%

FORD 90% 85% 85% 80% 75%

OPEL ASTRA 85% 80% 80% 70% 65%

MITSUBISHI LANCER 85% 85% 85% 80% 75%

FIAT SIENA 90% 85% 85% 80% 75%

FIAT UNO 85% 80% 80% 80% 75%

HYUNDAI SANTRO 90% 90% 90% 85% 85%

HYUNDAI ACCENT 90% 85% 85% 80% 75%

DAEWOO CIELO 75% 70% 70% NA NA

DAEWOO MATIZ 90% 90% 90% 85% 85%

TATA SUMO 85% 80% 80% 75% 70%

TATA INDICA 90% 90% 90% 85% 85%

TATA SAFARI 85% 75% 75% 65% 65%

MERCEDES 80% 75% 75% NA NA

b) FLAT INTEREST RATE (%)

MODEL 24m 36m 48m 60m

MARUTI 800 9.04% 9.15% 9.32% 9.50%

MARUTI OMNI 9.04% 9.15% 9.32% 9.50%

MARUTI ZEN 9.04% 9.15% 9.32% 9.50%

MARUTI ESTEEM 8.75% 8.86% 9.01% 9.18%

HONDA CITY 8.75% 8.86% 9.01% 9.18%

FORD 8.75% 8.86% 9.01% 9.18%

OPEL ASTRA 8.75% 8.86% 9.01% 9.18%

MISTUBISHI LANCER 8.75% 8.86% 9.01% 9.18%

FIAT SIENA 8.75% 8.86% 9.01% 9.18%

FIAT UNO 9.04% 9.15% 9.32% 9.50%

HYUNDAI SANTRO 9.04% 9.15% 9.32% 9.50%

HYUNDAI ACCENT 8.75% 8.86% 9.01% 9.18%

DAEWOO CIELO 8.75% 8.86% 9.01% 9.18%

DAEWOO MATIZ 9.04% 9.15% 9.32% 9.50%

TATA SUMO 8.75% 8.86% 9.01% 9.18%

TATA SIERRA 8.75% 8.86% 9.01% 9.18%

TATA INDICA 9.04% 9.15% 9.32% 9.50%

TATA SAFARI 8.75% 8.86% 9.01% 9.18%

MERCEDES 8.75% 8.86% 9.01% 9.18%

c) REDUCING BALANCE (%)[MONTHLY]

MODEL 12m 24m 36m 48m 60m 12m 24m 36m 48m 60m

MARUTI 800 16.5 16.5 16.5 16.5 16.5 9097 4920 3540 2860 2458

MARUTI OMNI 16.5 16.5 16.5 16.5 16.5 9097 4920 3540 2860 2458

MARUTI ZEN 16.5 16.5 16.5 16.5 16.5 9097 4920 3540 2860 2458

MARUTI ESTEEM 16 16 16 16 16 9073 4896 3516 2834 2432

HONDA CITY 16 16 16 16 16 9073 4896 3516 2834 2432

FORD 16 16 16 16 16 9073 4896 3516 2834 2432

OPEL ASTRA 16 16 16 16 16 9073 4896 3516 2834 2432

MISTUBISHI LANCER 16 16 16 16 16 9073 4896 3516 2834 2432

FIAT SIENA 16 16 16 16 16 9073 4896 3516 2834 2432

FIAT UNO 16.5 16.5 16.5 16.5 16.5 9097 4920 3540 2860 2458

HYUNDAI SANTRO 16.5 16.5 16.5 16.5 16.5 9097 4920 3540 2860 2458

HYUNDAI ACCENT 16 16 16 16 16 9073 4896 3516 2834 2432

DAEWOO CIELO 16 16 16 16 16 9073 4896 3516 2834 2432

DAEWOO MATIZ 16.5 16.5 16.5 16.5 16.5 9097 4920 3540 2860 2458

TATA SUMO 16 16 16 16 16 9073 4896 3516 2834 2432

TATA SIERRA 16 16 16 16 16 9073 4896 3516 2834 2432

TATA INDICA 16.5 16.5 16.5 16.5 16.5 9097 4920 3540 2860 2458

TATA SAFARI 16 16 16 16 16 9073 4896 3516 2834 2432

MERCEDES 16 16 16 16 16 9073 4896 3516 2834 2432

ADVERTISING STRATEGY

Headline: Now you don't have a car. Now you do.Subhead: -Body copy: At HDFC Bank, we understand you need a loan without hassles and delays. We approve Car loans, Personal loans, Two-wheeler loans and loans against most investments, Relief Bonds, share as well as insurance policies in almost no time. And if you're in a real hurry, just log onto www.hdfcbank.com for e-instant loan approvals in 60 seconds flat. We take care of all your dreams by financing every loan you need.Baseline: We understand your worldAGENCY: EuroRSCG.com

CAR LOANS FROM ICICI BANK:

ICICI offers car finance for new as well as old cars.

PRODUCT & ITS OFFERINGS

LOAN AMOUNT:

The car loans are offered to individuals as well as companies.

The loans cover up to 90% of value of the car. One can avail upto 90% of

value of the car one wants to purchase through the loan.

TENURE:

Options are available where you can pay back the loan by way of monthly

installments spread over a period ranging from 1 year to 5 years.

The repayment due dates for every monthly installment are the 1st or the 7th

of every month and payment would be collected through post dated cheques.

ELIGIBILITY:

Salaried Individual:

Gross Annual Income should be above Rs. 1,00,000

Self employed:

Individual If you are a proprietor, a partner, a professional, or a

director, with a Gross Annual Income of above Rs.60,000, you are

eligible to apply for an ICICI Car Loan.

Partnership Firm:

The firm should have a minimum PAT (Profit After Tax) of Rs.

60,000 for a standard car or minimum PAT of Rs 1,00,000 for a

premium car.

Private or Public Limited Company:

Private Limited Companies should have been in existence for at least

2 years and have a minimum PAT of Rs. 60,000 for a standard car or

a minimum PAT of Rs. 1,00,000 for a premium car.

Public Limited Companies should have been in existence for at least 2

years and have a minimum PAT of Rs. 1,00,000 for a standard or a

premium car.

DOCUMENTATION: Application Form

Photograph

Bank signature verification

Income Proof (Any one of the following)

ITR ( Income tax returns )

Form 16

Salary Slip

Identity Proof (Any one of the following )

Laminated Driving License

Voters' Identity Card

Passport

PAN Card

Photo Credit Card/

Photo Ration Card

Proof of Residence (Any one of the following)

Driving License

Voters' Identity Card

Photo Ration Card

Passport

COMPARISON BETWEEN HDFC & ICICI BANK:

HDFC Bank Car Loan Salaried 100000 Depends on the

car price 15.75 1 3

HDFC Bank Car Loan Salaried 100000 Depends on the

car price 15.75 1 5

HDFC Bank Car Loan Salaried 100000 Depends on the

car price 16.25 1 3

HDFC Bank Car Loan Salaried 100000 Depends on the

car price 16.25 1 5

HDFC Bank Car Loan Self employed100000 Depends on the

car price 15.75 1 3

HDFC Bank Car Loan Self employed100000 Depends on the

car price 15.75 1 5

HDFC Bank Car Loan Self employed100000 Depends on the

car price 16.25 1 3

HDFC Bank Car Loan Self employed100000 Depends on the

car price 16.25 1 5

ICICI Bank CarLoans Salaried NA 1000000 14.5 1 7

ICICI Bank CarLoans Salaried NA 1000000 16 1 7

ICICI Bank CarLoans Selfemployed NA 1000000 14.5 1 7

METHODOLOGY:

The study has been conducted using both primary and secondary data. The

information gathered through the interactive sessions with the personnel of the

company have also been given place while carrying out the study. The

Accounts Manual, the annual reports of the company has supplied me with the

required secondary data. Data has been analysed using graphical analysis.

FINDINGS:

F rom the analysis it has been found that ABN AMRO Bank has

been performing well for the last two years, placing itself at the top

position. Although it has ranked sixth in the financial year 2002-03,

it has increased its net profit by a considerable amount.

LIMITATIONS:

It is a general study of the financial aspects and analysis of three years only.

The study is limited to only a few ratios.

The study is limited to only a few weeks.

The study is mainly based on secondary data.

RECOMMENDATIONS:

ABN AMRO has undoubtedly come a long way in the past few decades; with a

worldwide spread and a distinct growth profile to its credit, the achievements are

undoubtedly remarkable.

What remains to be seen, however, is how the bank fights the ever- growing

competition and emerges as one of the industry leaders.

A number of prominent players exist today and customers are definitely no fools,

with the expectations soaring high, ABN has to deliver to conquer.

Let us not forget that some of the strongest contenders for global dominance are

the large European banks, the likes of ABN AMRO! Their strengths include solid

capital bases, strong balance sheets and of-course dominant shares of home

markets.

Mergers and Acquisitions have definitely been an integral part of the game as well

and ABN (Dutch Bank) too has been a participant by taking over Bank of America

retail operations. Therefore, in the case of European banks, the domestic market

dominance will enable them to subsidize forays abroad and thereby capitalize on

their financial strengths too.

WRITTEN BELOW ARE SOME RECOMMENDATIONS FOR ABN

AMRO BANK:

The Bank must maintain a certain level if capital adequacy.

This is important for ABN in order to gain competitive advantage in reducing its

cost of funding loans and making sure that a viable level of liquidity is maintained.

Thus the Bank will also have a better standing in the industry and be able to deal

with more profitable businesses and companies.

A greater focus on market segmentation.

ABN must carry out detailed market segmentation in order to define its targets

precisely. Targetting and understanding the defined targets is essential so that the

marketing efforts are not wasted.

The gaps must thus be identified in order to hit them and gain a competitive edge

over the competing banks. For instance a niche can be targeted with a particular

product or service.

The Bank must emphasize on Human Resource building and in building the

organization as a whole.

International banking is a fiercely competitive business and therefore a novel

product or service does not simply deliver the goods. The real source of

competitive advantage lies in how innovative the bank gets when recruiting its

people and how it trains them to be the best in the industry.

Thus ABN must reinforce the concepts of training workshops, promotions, and

rewards and further development of its manpower-The concept of “total quality

people” must be borne in mind.

A greater focus on Information Technology is the need of the hour.

In India the use of technology is still in the embryonic stage, ABN too has to make

an effort in technology upgradation. A greater focus needs to be on the application

of on-line services and the queries of the customer.

Virtual banking is of course a requirement in our era and “interactive voice

responses” need to be integrated into the system as well. Furthermore ETSPOS i.e.

Electronic Funds Transfer at Point OF Sale needs to be developed and incorporated

into the entire ABN network.

The ABN ATM network and the phone-banking is already quite well established,

however a lot needs to be done in the direction of developing Smart Cards and

Stored-Value Cards.

This would help ABN to reach its customers more closely and thereby deliver their

needs in time.

The concept of enhancing the “Brand” image and loyalty.

Building brand image and loyalty is definitely not an easy task. ABN has always

believed in customizing its services in order to deliver the very best to its

customers; the aim being evolving a long term relationship in time and serving all

the financial needs of the customer. The key in building loyalty therefore is in

“personalizing” the communication and the services with the customer.

Thus ABN must focus on: -

Customer Care

Educating and informing the customer.

Promotions and Advertising strategies have certainly played a relevant role in

increasing brand recall and in enhancing the image too. Today ABN is considered

as one of the finest banks in the country who believes in taking care of the

customer, the customer being the king!

ABN AMRO must monitor and add in special focus on valuable young

customers.

Although every customer is vital for the bank, the bank must especially focus on

the customers who bring in large business to the bank. Companies such as Tricon

International, Dominos, etc. for instance, amongst the other large clients of ABN

AMRO must be dealt with utmost care.

It is also interesting to note that according to a survey conducted recently, 52 +

million people in the age group of 22-32 years have average US $ 50,000 savings

already. That gives ABN enough reason to invest and direct its marketing efforts

towards the young individuals, which offer substantial business propositions to it.

ABN AMRO Bank must focus on Promotion of their products and services.

The bank must realize that the customer is looking for value-added propositions;

numerous banks are today offering extremely competitive services to an ocean of

customers and ABN must give that extra bit to make a distinct mark as well.

The idea is not in coming up with something novel, the point is to introduce that

extra bit in the form of attractive offers, discounts, schemes, tie-ups for the benefit

of the customer and the prospects out there.

Organizing product related melas and sponsoring various functions, especially

cause related would be a step in that direction. In the past few years the bank has

taken a rather passive stance towards the above, now is the time for ABN to get out

there and be more proactive in order to achieve success.

The Bank must incorporate an aggressive advertising strategy.

The past few years has seen an awakening on the part of the bank with respect to

the advertising efforts. Earlier no ABN ads were to be seen, today however the

scenario is going through a transition and ABN green and yellow logo is seen as

one drives through the city. Although an attempt is certainly being made, a lot

needs to done and seen!

ABN does of course need to get far more aggressive in terms of the use of media;

mass media such as various newspapers, radio and magazines could hold great

promises.

Furthermore the reach of the ad campaigns must also be designed such that it

reaches a greater number of individuals and the desired target segment. Let us not

forget that the advertising campaign must have a strong theme, which holds a great

level of attraction for the target segment and is customer oriented.

For instance, SBI-GE establishes an advtg strategy, which projects the bank as a

simple, straight and Spartan delivering agency that is always there to support the

financial needs of the customer, they also portray Gandhiji and add an emotional

ring to attract the prospects.

The frequency of the ads must also be considered and to be such that a substantial

impact is made on the audience and the brand image and recall are both enhanced.

One sees this in the case of ICICI campaigns on T.V.where Amitabh is repeatedly

telecasted and seen promoting the bank. The idea of a celebrity endorsing the bank

is of course another vital aspect that ABN could look into in time.

A greater focus on Tie-ups for passing on the benefits to customers.

Today customers are looking for value addition and the competitive scenario is

such that the various banks are offering their products with other benefits too.

ABN too must focus on giving value added products to the customers so that the

customers are attracted to use their services. Various tie-ups for instance with

Travel agencies, supermarkets, departmental stores, Airport Authorities, Hotels,

etc.that could give the customers of the bank a basketful of extra privileges and

discounts are certainly alluring propositions.

The concept of cross-selling to be taken more seriously.

The term cross selling refers to the opportunity presented to the bank in selling a

product or service to an individual who is already the customer of the bank and

uses its services for his financial needs. Thus every document a bank distributes is

a cross selling opportunity.

Cross selling is thus one of the easiest and most convenient ways of increasing the

banks business without actually going out to acquire new customers. Cross selling

is a technique that is carried out by most of the banks and is quite popular for the

stated obvious reasons. ABN must also reinforce this concept so that it may

acquire a greater number of profitable businesses with the help of the already

existing customers.

Customer Care is by far the single most relevant factor.

Being a service industry, the “people” factor is by far the most relevant issue for

the banks. Today the customer’s word is gospel itself and his wish cannot be

ignored. ABN realizes that and thus constantly focuses on customer relations, the

aim being to build a long-term relationship rather than simply achieving short-term

goals. The aim for the bank should however be in breaking free from the notion of

being an elitist bank that concentrates on corporate banking and large institutions

essentially, the catch is in being a people’s bank and thereby having a little

something for everyone.

Making Banking easy and simplified.

Most individuals grumble about painful and time-consuming procedures of

numerous banks; the aim of the banks must be to simplify and personalize the

various processes in order to make banking a pleasure.

ABN has to work in this direction too, with its customer list increasing over the

years, it is vital for ABN to provide both form and function, personalized

documents and account information which is easy-to-read format and easily

understandable as well. The bank could, for instance, present the financial status of

the customer in a more graphic and illustrative way rather than simply submit

statements with numerical figures.

ABN must focus on enhancing the overall banking experience.

The bank must build such a set up so as to make the customer dealings with the

bank immensely pleasurable and wonderful. The ambience that the bank creates

with respect to the designing including the services offered is of absolute

importance.The environment must be comfortable and pleasant with pleasant

people to welcome the customers. It is important to have that winning smile and a

warm welcome to win over a customer.

Last but not the least ABN must focus on its core competencies.

The bank must capitalize and build on the strengths it already possesses. For

instance, ABN is extremely strong in the realm of Auto Loans and Personal Loans;

it is therefore only natural that the bank should focus on these aspects and increase

its profitability levels thereby.

Furthermore ABN has already a strong standing in the corporate banking sector

and therefore must build on this as well.

The whole idea is to develop and build on what already exists!