PROJECT REPORT

ON

E-BUSINESS OF ICICI BANK

Submitted for partial fulfilment for the award of the Degree of:-MASTER OF BUSINESS ADMINISTRATION

(MBA 2011-2013)

SUBMITTED TO

MS. MUKTA NARANG

Submitted by:

ANIKA MUNJAL (174)

GAUTAM BASWAL (160)

GITARATTAN INTERNATIONAL BUSINESS SCHOOL

(Affiliated to Guru Gobind Singh Indraprastha University)

giBSGITARATTAN INTERNATIONAL BUSINESS SCHOOL

Group code : Section

Programme Semester

Course Course code

Date of Submission Signatures

EVALUATION AND FEEDBACK REPORT FROM FACULTY

Subject/Project

Knowledge(10)

ResearchMethodology

(10)

Data Analysis and Representation(10)

Presentation(10)

Total(10)

ConvertedMarks

(10)

Marks

Any Specific Comments

Signature of faculty: Name of the faculty:

ACKNOWLEDGEMENT

Any assignment puts to litmus test of an individual’s knowledge, credibility or experience and thus sole efforts of an individual are not sufficient to accomplish the desired work. Successful completion of a project involves interests and efforts of many people and so this becomes obligatory on my part to record thanks to them.

Therefore, on this way I am first of all thankful to GITARATTAN INTERNATIONAL BUSINESS SCHOOL and Mr. S.S. Narula for their great contribution in coordinating and cooperating with me.

I would like to express my special gratitude to my parents for providing all facilities and resources, despite of all constraints suffered by them.

I acknowledge the unforgettable guidance, invaluable suggestions & constant moral support of Ms. Mukta Narang during the course of the project.

At last but not the least, I express my heartiest gratitude to all my relatives, friends, almighty God for providing me the favourable environment and support.

Anika Munjal (174)

Gautam Baswal (160)

GITARATTAN INTERNATIONAL BUSINESS SCHOOL

DECLARATION

This is to certify that project entitled “icicibank.com” which is submitted by Anika Munjal and Gautam Baswal in partial fulfillment of the requirement for the award of degree of MBA to “Gitarattan International Business School”, GGSIP University, Dwarka, Delhi comprises only my original work and due acknowledgement has been made in the text to all other material used.

Signature of the student

CERTIFICATE

This is to certify that the project titled ”E-business of ICICI bank” submitted

by Anika Munjal and Gautam Baswal

Enroll No: 17419103911

16019103911

During semester 2nd of the MBA Program embodies original work done by both the students.

Signature of the Faculty Supervisor ----------------------------

Name … Ms. Mukta Narang

Designation … Assistant professor

Campus ... Gitarattan International Business School

SYNOPSIS

Title:

E-business by ICICI bank Ltd.

Group members:

Anika Munjal (174)

Gautam Baswal (160)

Statement of the problem or Hypothesis:

The project is structured for the purpose of getting good insight of, electronic business(e-business), various e-commerce models, e-commerce security and concept of e-money in the form of a case study.

Objective/ Aim of the project :

To get a good insight on e-commerce done by ICICI bank.

To see and analyze the various tools used for e-commerce by the bank.

Research Methodology:

Research methodology is a systematic way of solving a problem. It may be understood to study how research is done scientifically.

Study design The project is using a descriptive study design as it will be using the detailed information provided by various websites on e-commerce by ICICI bank.

Sources of data Collection:

Data for this project has been collected from secondary sources:

1. Newspapers2. Reference Books3. Internet4. Journals5. Magazines

Usefulness:

1. It will help us to do e-commerce easily and effectively.2. It will save us from various e-commerce threats.

TABLE OF CONTENTS

S No.

Contents

1. Introduction

2. Journey to E-business

2.1 Revenue Models and Business Model

2.2 Security features

2.3 Payment Gateways

3. Bibliography

E-BUSINESS ICICI BANK

Introduction : - ICICI bank stands for Industrial Credit and Investment Corporation of India founded in 1996. It is an Indian diversified financial services company headquartered in Mumbai, Maharashtra. It is the second largest bank in India by assets and third largest by market capitalization. It 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 in the areas of investment banking, life and non-life insurance, venture capital and asset management. The Bank has a network of 2,575 branches and 8,003 ATM's in India, and has a presence in 19 countries, including India.

Journey to E-Business: - In 1997, ICICI bought the 'BankAway' software from Infosys. BankAway was an e-commerce solution that provided the bank a platform to offer an integrated financial services portal to the customers. It offered access to account information, bill payment, cash management, trade finance and online shopping. 'Infinity' was initially targeted at the non-resident Indians (NRIs) to enable them to manage their bank accounts in India through the Internet. According to the bank's sources, Infinity helped to increase the business generated from NRI customers from Rs 300 million in 1997 to Rs 1.4 billion in 1998. The service was also aimed at individuals in the age group of 30 to 50 years working in the corporate sector and proficient in using technology. However, over the next few years, the bank enhanced its services to attract other customers as well. As a result, by early 2000, ICICI had over 110,000 Internet banking customers.

With this rapid adoption of the internet banking of ICICI bank, it is no surprise that consumers are also buying more online, thanks to the ease of purchasing from home with the simple click of a button and a choice of payment options.

Below is a small list of transactions that ICICI offers:

Bankingo Balance enquiryo Transaction historyo Use ICICI Bank Funds Transfer (eCheques) to:o Transfer funds between your own ICICI Bank A/cs

Transfer funds to any ICICI Bank a/c Transfer funds to any non ICICI Bank a/c (in 15 cities) Make Service requests like open a Fixed Deposit, duplicate pin etc.

Credit card o View current and past statemento Service requests like auto debit, dial a draft etc.

Demat o View your transaction and holding statement

BillPaymentUse your ICICI Bank Account or ICICI Credit Card to pay your utility bills from the comfort of your home.

ICICI bank also gives us an opportunity to buy or shop online on its website which has been named as “OFFER ZONE”.

In today's intensely busy business world, every minute is precious. In this scenario, tax paperwork can be a tedious process. ICICI Bank with its technology driven banking gives us a better option - Online Tax.

ICICI Bank offers Overdraft and Cash Credit Facility to traders, processors, transporters, aggregators, etc. in the Agri-sector.

As Internet banking can reduce the number of its branches, lower operating costs and increase revenue services. So ICICI bank used the Sales Revenue model and Affiliation model as its revenue model for its e-commerce operations to generate higher profits and produce a superior return on invested capital.

For its sales revenue model it generated income by the level of service, type of transactions and accounts. For example:- If we do the ATM transaction of our ICICI debit card thru some other bank’s ATM, then after five transactions it charges some fixed amount per transaction which becomes its revenue.

And for the Affiliation model it generated revenue in the form of referral fee or percentage of the revenue from any resulting sales by affiliating with number of websites, organizations, big businesses and stores like IRCTC, Yatra.com, ezeego.com, ebay.com, snapdeal etc. by offering them special deals. So whenever we go and buy something from bank’s website bank gets its commission of selling the other company’s product and the customer gets the points which they can redeem on the bank’s online offers.

ICICI bank’s Business to Consumer e-commerce helps in processing online sales transactions such as stockbrokers and travel agents, which increase customers’ productivity by helping them, get things done faster and cheaply.

Also with ICICI Bank Mobile Banking, we can check our account balance, transfer funds 24 x 7, pay our bills, book bus and flight tickets, recharge our prepaid mobile or DTH connection and do a lot more effortlessly and securely. Its Mobile Banking services work with almost all types of handsets and helps access ICICI Bank account easily and securely. We need to choose the Mobile Banking option which suits our banking needs based on our handset, GPRS connection and service operator and we are ready to use mobile banking.

ICICI Bank provides a highly secure environment for carrying out the banking activities on the Internet. A multi-layered security architecture comprising firewalls, filtering routers, encryption and digital certification ensures that the account information is protected from unauthorized access. We are aware that security of money is of utmost importance while making payments online and that is why ICICI provides us with eWallet and Virtual Credit Card also which are specifically designed to mitigate risk and security issues which it faces.

* It has firewalls and filtering routers which ensure that only legitimate Internet users are allowed to access ICICIBank.com* Encryption techniques used by the Bank (including the sophisticated public key encryption) would ensure that the privacy of data flowing between the browser and the ICICIBank.com is protected* Digital certification procedures provide the assurance that the data we receive is from the Internet Banking system.

No compromise has been done on the security front. All care has been taken that hacking is not possible at the site. Precautions in terms of firewalls, data encryption, and digital certification are used so that no malicious or unauthenticated person is able to access your account. Additional features such as digital signatures, etc can also be set up. Other features include a safe password that only you will know, and even the Bank employees will not have access to your password. There will be no memory caches allowed on the navigator so that after you logout another person will not be able to access by pressing the “Back” button on the navigator. Also there is a time out for the screens. If the screen is not used for 5 minutes, it automatically logs you out from the site.

System integration with Customer’s ERP :

You can download the account statements either as a text file or as an excel file. The Bank can help the customer in integrating the account statements and bulk payment files with the ERP system. The Bank charges a nominal fee depending upon the nature of work involved.

The only security threat to ICICI e-commerce lies in Phishing e-mails and mobile transactions. The risk of exposing confidential information is increasing as customers explore new channels for financial transactions through e-commerce and mobile banking.

Smartphones are susceptible to hacking,” said Ajay Goel, Managing Director, India and SAARC, Symantec. “Indian customers are security conscious, but at times they show negligence when it comes to online transactions. Banks need to implement robust security standards to prevent any form of attacks, internal or external,” A few basic guidelines can go a long way in making the experience of online shopping a fruitful exercise. One of the most important decisions a customer is required to take during online transaction is to choose the payment gateway.

It is critical that the payment gateway we choose supports basic fraud detection and that all required authentication measures are in place. Most frequently, credit card fraud is carried out by individuals, who have access to only credit card numbers and not the physical cards. “Two factor authentication checks via a one-time password are useful.

ICICI Bank has implemented an additional security feature "ICICI Bank i-safe" to safeguard the interests of our Internet Banking customers. If a change is observed in the Internet Banking access pattern, customers may be asked to validate their identity with a 'One Time Password' (OTP). OTP is sent to the registered mobile number for resident customers and registered e-mail ID for NRI customers. OTP is generated at the same time.- If resident customers have not registered for the mobile banking services, they may visit any ICICI Bank branch with photo identity proof.- If NRI customers have not registered their e-mail ID, they may contact 24-hour Customer Care.

ICICI bank thinks safety of its consumer as its main goal, so it has provided few guidelines for the same:-

1. Avoid accessing the Internet Banking account from a cyber cafe or a shared computer. However, if you happen to do so change your passwords from your own computer.

2. Every time you complete your online banking session, log off from ICICIBank.com. Do not just close your browser.

3. To access ICICI Bank's Internet Banking, always type in the correct URL (http://www.icicibank.com/) into your browser window. Never click a link that offers to take you to our website.

4. If your log-in IDs or passwords appear automatically on the sign-in page of a secure website, you should disable the "Auto Complete" function to increase the security of your information.To disable the "Auto Complete" function:

1. Open Internet Explorer and click "Tools" > "Internet Options" > "Content". 2. Under "Personal Information", click "Auto Complete".3. Uncheck "User names and passwords on forms" and click "Clear Passwords".4. Click "OK".

5. Change your Internet Banking passwords (both log-in password and transaction password) after your first log-in, and thereafter regularly (at least once in a month).

6. Your password should be complex and difficult for others to guess. Use letters, numbers and special characters [such as !,@, #,$, %, ^, &,* (, )] in your passwords.

7. For additional security to financial transactions through Internet Banking, create and maintain different passwords for log-in and for transactions.

8. If you have more than one Internet Banking user ID, use a different password for each of the user IDs. You may also view all your accounts with ICICI Bank under a single user ID by linking your various accounts to your preferred Internet Banking user ID. Never share your Internet Banking passwords with others, even family members. Do not reveal them to anybody, not even to an ICICI Bank employee.

9. Always check the last log-in to your Internet Banking account. Log in to ICICIBank.com and see the left hand side of the "My Accounts" page to view the date and time of your last log-in.

ICICI has a set up B2B and B2C e-Commerce Payment Gateway. ICICI Ltd. has tied up with Compaq led consortium for setting up a payment gateway to facilitate secured online Business-to-Consumer (B2C) and Business-to-Business (B2B) e-Commerce transactions. The payment gateway will be owned by a subsidiary of ICICI and implemented by Compaq India, subsidiary of Compaq Computers Corporation, QSI Payment Technologies (QSI), Australia and Financial Software & Systems Pvt Ltd. (FSS). ICICI is the first financial intermediary to implement an e-Commerce payment gateway within India and is providing services to corporate, consumers, merchants and banks that plan to share the ICICI Payment Gateway. ICICI's B2C payment gateway will interface between the Internet shopper, the web merchant and banking systems in a secured environment to facilitate online payments. The Gateway offers the flexibility of multiple payment modes including credit, debit & smart cards, direct bank debits and e-cheques. The Gateway will use strong encryption technologies and digital signatures to protect these transactions from potential attacks by hackers.

As the electronic money or e-money we say, is money which exists only in banking computer systems and is not held in any physical form. e-Transfer (ACH) is a secure online and an efficient remittance service which helps you directly transfer funds from your existing bank account in USA into bank accounts with over 100 banks in India and into resident Visa Debit Card account * in India. It uses the ACH (Automated Clearing House/e-transfer) facility in USA that has a network of over 20,000 banks in USA – a customer do not have to open an account with it.

The various modes of fund transfer available in CIB(Corporate Internet Banking) : CIC can manage their Supply-Chain network, effectively by using Corporate Internet Banking online fund transfer mechanism of the Bank. They can effect fund transfer on a real time basis across the bank locations. The product facilitates:

*One-to-one fund transfer between two linked accounts. In one-to-one fund transfer the accounts are linked and the user selects the debit and credit account, enter the amount and narration for fund transfer and effects the same

* Bulk fund transfers. In bulk fund transfers, you upload a flat file containing payment/collection information. The format of the text file can be pre-defined and the main contents of the file are account no., amount, currency code and narration for the

payment/collection. This is useful for effecting multiple payments/collections at a single click. The Bank’s systems take care of processing the entire file and once the file is processed you can integrate the processed file to your ERP for auto reconciliation.

* The real life situation of user-wise limits and multilevel signatories can be mapped in the net-based fund transfer module too. You can specify user-wise cap for funds transfer and the number of approvals needed for each fund transfer. The fund transfer will not take place unless the required number of signatories has approved it

* With a Power of Attorney from your dealers, you can link the dealers’ accounts to your account in order to have an online fund transfer, saving you time and money involved with cheque collection systems. Alternatively, the dealer can credit your account through this channel. Similarly, you could also effect vendor and other payments online.

Presently in India, there is no real time online electronic connectivity between the various Banks. This puts in a small constraint in terms of the banking relationship to the constituents of the supply chain. Hence, it becomes important that the supplier, you and the dealer have account at ICICI Bank. Only then the efficiency of the system can be used to the fullest.

BIBLIOGRAPHY

http://icicibank.com/

http://books.google.co.in/books?id=cheOQeh8rk4C&pg=PA497&lpg=PA497&dq=source+of+income+from+internet+banking&source=bl&ots=Rn4Gflb-2Y&sig=KS5Mmn1QZQ_hYBX08MuP2PwLTKQ&hl=en&sa=X&ei=bHp5T_2eNozJrAePiLGJDQ&ved=0CDgQ6AEwAg#v=onepage&q=source%20of%20income%20from%20internet%20banking&f=false

http://www.icmrindia.org/free%20resources/casestudies/banking4.htm

http://www.oppapers.com/essays/Case-Study-On-Icici-Bank/594795?topic

http://kannanpersonal.com/student/kgl/case10.html