icici bank

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1 Institute of Management Studies Devi Ahilya Vishwavidyalaya, Indore

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2 Industrial Credit and Investment Corporation of India Limited MBA-Financial Administration Priyanka Jadam Pratima swarnkar Nitesh Kumar Kirar Presented By

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Background Subsidiaries Organization structure Working Procedure Today’s Agenda

Background:

Background 4 History & Milestones! Global presence! ICICI Bank Today!

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5 Global presence Canada UAE Singapore China USA UK Sri Lanka Bangladesh Russia South Africa Bahrain Subsidiary Representative Office Mumbai Hong Kong Malaysia Thailand Indonesia Belgium Qatar Overseas Branch Largest international balance sheet among Indian banks Germany

ICICI Bank today:

ICICI Bank today Large capital base Vast talent pool Low operating costs Technology focus Strong corporate relationships 6 India’s largest private sector bank and one stop financial solutions provider with a diversified and de-risked business model

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‘s Subsidiaries

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8 Organization Structure Retail Banking Wholesale Banking Project Finance and Special Assets Management International Business Corporate Centre

Working Procedure:

Working Procedure 9 Why ICICI is so successful ? And why not other banks?

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10 What was the MAGIC that forced ICICI to come in Retail Sector?

First Magic that forced ICICI to come in Consumer Segment :

11 11 First Magic that forced ICICI to come in Consumer Segment Estimates based on NCAER data. Consuming class comprises middle and high income households Consuming class population estimated at about 260 mn 1 Consuming class population estimated at about 350 mn 1 2000: Per capita income Rs 16,173 2007: Per capita income Rs 24,295 35% growth From per capita GDP of US$ 1,000 to US$ 1,500: consuming population to grow manifold Consuming class population estimated at about 600 mn 1 2015: Per capita income Rs 36,442 70% growth

Second Magic that forced ICICI to come in Consumer Segment:

Second Magic that forced ICICI to come in Consumer Segment 12 Consumer loans outstanding (USD in billion) Consumer loans outstanding / GDP (%) Source: Salomon Smith Barney

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13 What were ICICI Strategies to Capture untapped market?

ICICI Bank’s strategy to capture retail potential:

ICICI Bank’s strategy to capture retail potential 14 Strong corporate relationships Brand Technology Operational excellence Achieving leadership in retail financial services

ICICI Bank’s consumer finance strategy:

15 ICICI Bank’s consumer finance strategy Sound selling strategy Multi product offerings Multi channel offerings Pan-India provider of full suite of retail products Efficient operations S t r o n g B r a n d Focus on cross selling The one stop financial shop Product differentiation Technology led delivery of products Superior service quality at optimum cost Aspirations Market leadership & Scale

Establishing consumer credit distribution:

16 Establishing consumer credit distribution Doorstep delivery Agents taking product to the customer Availability of credit at the customer’s home or office Point-of-sale delivery Strong channel partner network Manufacturers, dealers, realtors Availability of credit at point-of-sale of product “Enhanced customer convenience” the key selling proposition

…and achieving economies of scale….:

17 Before 1999 Particulars 6 Branches/ Offices 3,000 Customer Base Single product Product Portfolio ATMs - …and achieving economies of scale…. Employee Base 1,000 Internet customers - Now 2044 31 Mn complex retail & corporate finance products 5546 >35000 >18.3 Mn

…by leveraging technology channels…:

18 Usage 2008 1,2 7% Branches 2 Usage 2000 1 94% 37% ATMs & POS terminals 3% 21% Internet 2% 30% Call centre & mobile banking 1% Channel For savings accounts. Excluding 5% of transactions processed at centralised operations centres …by leveraging technology channels…

Is it possible to manage excellency in such a COMPLEX system?:

Is it possible to manage excellency in such a COMPLEX system? 19 T hen What did ICICI do to manage such a COMPLEX system?

Operational excellence:

Operational excellence 20 Prudent credit policies Adequate fraud control Rigorous collection mechanism 6 sigma

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21 What does make ICICI better than its Competitors?

ICICI Bank: Low cost technology as competitive advantage:

22 ICICI Bank: Low cost technology as competitive advantage Source: Mckinsey * ICICI Bank spending as 100 units per account