ICICI BANK

MOST IMPORTANT CHANGES IN ICICI Bank
# ICICI Bank And Sify for online distribution of retail banking products & services.
December 15, 1999
In a major development in the Internet world, ICICI Bank, the banking subsidiary of ICICI Ltd. (NYSE: IC and IC.D) and Satyam Infoway Ltd. (NASDAQ: SIFY) announced the setting up of a new ".COM" company for on-line distribution of retail banking products and services on the Internet. This landmark agreement marks the coming together of India's first Internet Banking provider, ICICI Bank, and India's largest private ISP and mega-Portal, Satyam Infoway, to create a unique partnership between a major Bank and a mega-Portal. The marriage between banking and portals is expected to be a win-win potent combination, which is expected to result in improved customer orientation, lower distribution cost, long-term customer relationships with ease of banking wherever and whenever the customer wants it and enhanced profitability. The range of retail banking products to be distributed through the portal would include savings accounts, current accounts, fixed deposits, bill payments and other retail banking products that ICICI Bank may offer through this on-line channel.
The surge in demand for e-commerce related services stems from the rapid growth in Internet penetration in the country and a fundamental change in the business paradigm. The two companies would therefore also explore several opportunities to complement each other's strengths to capitalist on the opportunities in e-commerce. This would include providing a platform for trade facilitation and payments over the Internet using innovative banking products of ICICI Bank. SIFY has a buyer to seller ordering/selling website, SeekandSource.com, which is on-line

except for the payments that are still physical. ICICI Bank has developed an Internet based 'business to business' payment module for purchasers and sellers to effect payments online. A synergistic offering of these two products would be made so that such customers/users can complete the entire transaction and payments online.
The two companies would expect to co-operate wherever feasible to extend the reach and channels for distribution of financial products from ICICI Bank and Internet products from SIFY. ICICI Bank, as a part of its "Click and Brick" strategic focus would set up ATMs at the Satyam Access Points and Cyber Cafes, thereby increasing its reach across the country. It would also offer Satyam Internet terminals at its branches, enabling visitors to surf the Internet, thereby attracting new customers to its branches.
The two companies shall examine further business opportunities, which would effectively synergies the financial services strength of ICICI Bank and its Affiliates and the technological expertise of Satyam Infoway and its Affiliates. ICICI Bank and Satyam Infoway through this partnership will play a strategic role in providing revolutionary e-commerce solutions in India.
The memorandum of understanding was signed today between Mr. H.N Sinor, Managing Director & CEO of ICICI Bank and Mr. R. Ramraj, Managing Director of Satyam Infoway.
ICICI is a diversified financial services company offering a wide range of products and services to corporate and retail customers in India. ICICI Bank, a subsidiary company has been the pioneer of Internet banking in India. ICICI Bank has been gearing itself for the opportunities that would be created from the e-Commerce revolution.
Satyam Infoway Ltd. is the leading integrated Internet and e-commerce company operating in India. SatyamOnline, the most comprehensive portal site of Indian origin is one of the key offerings from SIFY in the business to consumer segment. Recently it entered into an agreement to acquire IndiaWorld Communications Private Limited, which would result in the integration of IndiaWorld's popular websites like samachar.com, khel.com and khoj.com with SIFY's portals. The combined portal would be the largest India related Internet portal.

# ICICI One Source Enters Global BPO Market
Acquires Customer Asset, a leading contact center services company
ICICI One Source Limited, a company promoted by the ICICI Group, announced its entry into the global Business Process Outsourcing (BPO) business. ICICI One Source will offer contact center and transaction processing services to international companies. The contact center services include a wide range of products including inbound and outbound calls, e-mail and chat services. In this area, the ICICI One Source Group already has a number of international customers in various sectors ranging from financial services, telecom, retail and travel. In the transaction processing area, ICICI One Source is focusing on specific verticals in the financial services sector where it has extensive domain knowledge, including retail banking, credit cards, mortgages, insurance and asset management.
According to Gartner Group estimates, the global BPO market is expected to reach US$ 234 billion by 2005. Nasscom and McKinsey have recently increased their projections for the Indian IT Enabled Services market in 2008 to US$ 21 billion from the US$ 18 billion earlier. About 30% of this business is expected to come from banking, insurance and financial services.

Announcing the launch, Mr. K.V. Kamath, Managing Director and CEO, ICICI Bank said, We believe that state-of-the-art capabilities in CRM and transaction processing is core to banking success and it is important for us to remain at the cutting edge of technology in this area. ICICI One Source has been set up to leverage our Group's extensive in-house capabilities and tap the huge market for international BPO.
Mr. Ananda Mukerji, who has been appointed as Managing Director and CEO of ICICI One Source said, "A large number of companies have announced their entry into this business. The successful companies will be those with a credible brand, ability to access capital and deep domain knowledge in their product offering. ICICI One Source is uniquely positioned in this respect."
ICICI One Source also announced that it is acquiring Customer Asset, a leading Bangalore based contact center services company at a total Enterprise Value of US$ 19.3 million. In a span of two years Customer Asset has established its credentials as one of the best contact center companies in India. The company has a leadership position in the UK market and a strong in-market position in the USA. Customer Asset has over 10 international customers, including several Fortune 500 companies. Ernst & Young were the Financial Advisors for the transaction.
As per the terms of the agreement, ICICI One Source will acquire Customer Asset’s India, USA and UK operations. Customer Asset has over 750 employees and operates a 350 seat contact center facility in Bangalore. Another 600 seat facility is being setup at Bangalore and is expected to be operational by August 2002. Ongoing recruitment to add 800 employees in three months to address the ramp-up needs of existing projects is currently underway. The company has adventures, ant factory and Jump startup as venture capital investors.
Mr. Mukerji added, "The acquisition would provide ICICI One Source a proven contact center team and a growing list of Fortune 500 clients. The company would shortly have 1500 seats in 3 centers in Mumbai and Bangalore. This would provide effective business continuity and disaster recovery capability, crucial in big ticket back office processing offerings."
“The financial strength, domain expertise and brand name that ICICI One Source represents proved to be compelling reasons for ICICI to pursue this relationship. The combined value proposition will help enrich the suite of services offered and enable ICICI to move up the value chain to provide an enhanced offering to our clients” said Mr. K Ganesh, Co-founder & CEO, Customer Asset, who has joined ICICI One Source as President, Contact Center Business.
About ICICI OneSource :
ICICI OneSource (www.ICICIonesource.com) is the international business process outsourcing company promoted by the ICICI Group. It's 500 seat BPO center in Mumbai is expected to be operational in June 2002.
About CustomerAsset :
CustomerAsset (www.customerasset.com) is a global contact center services company servicing businesses in the UK and the US. Customer Asset’s offshore center is located in Bangalore, India and its global subsidiaries are headquartered in San Mateo and London.
For media queries contact:
Madhvendra Das at (+91-22) 6536124 or e-mail : [email protected]

#ICICI Bank and Give Foundation Introduce "Give2India" Scheme Facilitating NRI donations for social projects in India

News Release January 9, 2003

ICICI Bank (NYSE:IBN), India’s largest private sector bank, in association
with Give Foundation, a non-profit organization, today introduced
GIVE2INDIA - a charitable financial instrument to facilitate donations by
Non Resident Indians (NRI) to social development projects in India.
GIVE2INDIA schemes are aimed to provide NRIs a reliable medium to
invest in causes , fund projects and aid people they want to support in
India. The offering will allow NRIs to identify worthy and accountable social
Development projects across India, facilitate their smooth financing and
Monitor the progress.

Give2India scheme has two main components - financial instruments
and value-added services. Donors have the option of selecting the
Financial instrument most suited to their requirements and services that
would aid in maximizing the effectiveness of their donation.

Financial Instruments:
A) GIVE2INDIA Escrow Account: An NRI donor can open an escrow
account with ICICI Bank with a minimum donation of $10,000 to fund an
identified project which has also been evaluated and certified by Give
Foundation. ICICI Bank will transfer funds to the project on achievement
of milestones as directed by the donor. If the project fails to meet
agreed milestones, the donor can redirect the funds to any other
project supported by GIVE Foundation. This scheme ensures that the
donor continues to have control over the flow of funds to the project.

B) GIVE2INDIA Donor Advised Fund (DAF)
Donor Advised Funds provide an alternative to direct giving or setting
up a private foundation. The DAF can be established by opening a
"charity account" with Give Foundation with a minimum balance of
$10,000. The donor can direct the use of the funds for various projects
as per his/her own time-table. The Donor can also seek Give
Foundation's assistance for identifying worthy projects for giving.

C) GIVE2INDIA Deposit Scheme
The GIVE2INDIA Deposit scheme allows an NRI to fund projects from
the interest earned on his deposits, while the principal amount remains
Intact. The donor would need to open an NRE (Non-resident External)
Account with ICICI Bank with a minimum deposit of $40,000, and
Earmark the interest for charity. The interest earned will be credited to
the donor’s Donor Advised Fund account with GIVE Foundation.

Value-Added Services:
Give foundation will also provide value added services to help an NRI
Maximize the effectiveness of his donation. The Foundation will help a

Donor develop a charity portfolio by helping him think through
Philanthropy objectives and define the portfolio objectives, structure and
Project criteria. It would assist the donor in identifying worthy projects
using the criteria defined by him. Give Foundation would also help a
donor define measurable project outcomes and monitor project
implementation against these deliverables.
About GIVE Foundation:

GIVE Foundation is a professionally governed and managed not-for-profit
Organization, registered u/s 25 of the Companies Act, dedicated to helping
the poorest of the poor in India. GIVE Foundation was established in the
Year 2000 and has evolved an NGO evaluation system that uses a variety
of financial, governance, and performance based parameters. GIVE
Foundation also owns and manages the online charity portal
www.giveindia.org .
About ICICI Bank:
ICICI Bank (NYSE:IBN) is the largest private sector bank in the country
Providing a broad spectrum of financial services to individuals and
Companies. ICICI Bank today services a growing customer base of more
than 5 million customer accounts and 5 million bondholders accounts
across the country through a multi-channel access network. This includes
Over 400 branches and extension counters, over 1280 ATMs, call centers
And Internet banking.

Except for the historical information contained herein, statements in this release,
Which contain words or phrases such as 'will', 'would', etc., and similar
Expressions or variations of such expressions may constitute 'forward-looking
statements'. These forward-looking statements involve a number of risks,
Uncertainties and other factors that could cause actual results to differ materially
From those suggested by the forward-looking statements. These risks and
Uncertainties include, but are not limited to our ability to obtain statutory and
Regulatory approvals and to successfully implement our strategy, future levels of
Non-performing loans, our growth and expansion in business, the adequacy of
our allowance for credit losses, technological implementation and changes, the
Actual growth in demand for banking products and services, investment income,
Cash flow projections, our exposure to market risks as well as other risks detailed
in the reports filed by us with the United States Securities and Exchange
Commission. ICICI Bank undertakes no obligation to update forward-looking
Statements to reflect events or circumstances after the date thereof.



# Changes at ICICI Securities

News Release July 23, 2002

ICICI Bank (NYSE: IBN) announced today that Mr Devdatt Shah, Managing
Director and CEO, ICICI Securities and Finance Company Limited (I-Sec), the
Investment banking subsidiary of ICICI Bank, will be stepping down from
Office and relocating to Toronto, Canada by the end of the Year 2002, owing
to overwhelming personal reasons. ICICI Bank also announced that Ms.
Ramni Nirula, Senior General Manager, ICICI Bank in charge of the Client
Solutions Group, will hold additional charge of I-Sec concurrently with Mr.
Devdatt Shah until a successor is identified. Ms. Nirula will be inducted on
the board of I-Sec at its forthcoming Board Meeting.

Mr. Shah has been at the helm of I-Sec since January 1999, and during this
Period the firm has emerged as a pre-eminent investment bank in India. As
One of India's largest integrated investment banks, I-Sec has emerged as a
Strong client-focused firm with a reputation for providing outstanding
Services to its corporate, government and institutional investor clients.
Under his leadership, I-Sec has built a superior team of bankers focused on
Delivering creative solutions and advice to its clients.
I-Sec continues to retain its position at the forefront of investment banking in
India. In the current year it achieved industry-leading results with profit after
Tax of Rs. 1,278.9 mn on a gross income of Rs. 3,788 mn.
This represents growth of 138% in PAT and 24% in gross income. The

Company’s return on average net worth (RONW) was 43.5%, up from 20.8% in the previous year.
Its capital adequacy ratio as on March 31, 2002, was 26% as against the
Minimum requirement of 15%. The Company’s fixed income business
posted trading volume of Rs1,099bn, up from the previous year’s Rs528bn.
Its sovereign bond index, I-bex, has been recommended by AMFI for gilt
funds’ valuation. The Company has also been rated ‘Best Indian Rupee Bond
House 2001’ by Finance Asia and ‘Best Domestic Bond House’ by Asia
Money. The Company was ranked fourth in M&A Advisory for FY2001 by
INDATA. ICICI Securities Inc, one of I-Sec's international subsidiaries is a
registered broker-dealer with the National Association of Securities Dealers
Inc, U.S., enabling it to engage in a variety of securities transactions in the
U.S. market.
For further press queries please contact Madhvendra Das at (022) 6536124
or e-mail: [email protected].






# PUBLIC ISSUE OF ICICI BANK BONDS – JANUARY 2005

News Release January 20, 2005

Under the Umbrella Prospectus approved by the Securities and Exchange Board of
India (SEBI), ICICI Bank is launching the first public offering of Unsecured
Redeemable Bonds in the nature of Debentures aggregating Rs. 600 crore with a right
to retain oversubscription of up to Rs. 600 crore (“ICICI Bank Bonds – January 2005”).
The issue will open for subscription on January 27, 2005 and will close on
February 9, 2005.

Two premier credit rating agencies have assigned AAA ratings for the bonds: -
“LAAA” by ICRA and “CARE AAA” by CARE. The ratings signify highest safety
with regard to timely payment of principal and interest.
The Issue offers various options under three types of bonds – Tax Saving Bond,
Regular Income Bond and Children Growth Bond.
NRIs are also eligible to invest in these bonds on both repatriable and nonrepatriable
basis.

1. Tax Saving Bond
The investor may choose any of the following options in respect of the Tax Saving
Bond:
I II
Tax Benefit Available Sec 88 Sec 88
Issue Price (Rs.) 5000/- 5000/-
Redemption Period 5 years 5 years
Face Value 5000/- 6700/-
Interest Rate (%) p.a.* 6.00 Deep Discount
Bond (YTM 6.00)
Frequency of interest
Payment
Annual N.A.
YTM (%)*# >
(with tax benefits)
10.0 9.6
Minimum Application 1 Bond 1 Bond
* Subject to TDS as per the then prevailing tax laws
# Rounded off to the nearest multiple of 0.1



> The yield has been calculated assuming that a tax rebate of 15% is available to the
Eligible investors and that a surcharge of nil% and education cess of 2% of tax is
Payable in case of all the options.





Full and firm allotment is assured for all valid applications for the Tax Saving Bond.
Currently the maximum limit for taking benefit of the rebate under
Section 88 of the Income Tax Act is fixed at Rs. 1,00,000/-. Out of this, Rs.
30,000/- can be invested only in such eligible issue of capital, the proceeds
of which are to be utilized in infrastructure projects.

Tax Saving Bonds offered by ICICI Bank is one such eligible investment for
this purpose.
This means that out of the overall limit of Rs. 1,00,000/-, Rs. 30,000/- can
be invested only in such issues. Further to the Rs. 30,000/- one can also
invest the balance Rs. 70,000/- in these Bonds to avail the benefit under
Section 88. Thus it may be noted that the investors may invest the entire
amount of Rs. 1,00,000/- in these bonds for taking benefit of rebate under
section 88.

2. REGULAR INCOME BOND
I II III
Issue Price/ Face
Value (Rs.)
5000/- 5000/- 5000/-
Redemption Period 5 years 7 years 10 years
Interest Rate (%) p.a.* 6.75 7.00 7.25
Frequency of interest
payment
Annual
YTM(%) p.a. *# 6.8 7.0 7.3
Minimum Application 3 Bonds 3 Bonds 3 Bonds
* Subject to TDS as per the then prevailing tax laws
# rounded off to the nearest multiple of 0.1
Under the Regular Income Bond, an investor can invest for 5 years or 7 years or
10 years and earn regular income on an annual basis.






3. CHILDREN GROWTH BOND
I II
Issue Price (Rs.) 5000/- 5000/-
Redemption Period 7 years 10 years

Face Value (Rs.) 8000/- 10000/-
YTM(%) p.a. *# 6.9 7.2
Minimum Application 2 Bonds 2 Bonds
* Subject to TDS as per the then prevailing tax laws
# Rounded off to the nearest multiple of 0.1
All the Bonds are available in Demat mode too.
For the investors who are investing for long term, holding the investment has been


made more convenient as the same can now be held in dematerialized mode.
The investors have the option of availing the Electronic Clearing Facility (ECS)
for receiving their interest and redemption amount. This would obviate the need for
issuing and handling paper instruments.
All the Bonds will be listed on BSE and NSE and are freely transferable before
maturity.
The ICICI Bank Bonds – January 2005 issue provides the investors another
opportunity to save at market interest rates and offers various redemption periods
and options to choose from. The investor can opt for regular income or deep
discount bonds or invest in the Tax Saving Bond to help him plan his taxes as ICICI
Bank Tax Saving Bonds offers an opportunity to save taxes. Further the
ICICI Bank Bonds issue - January 2005 is the first offering by ICICI Bank of
Infrastructure Bonds in the current fiscal to enable save taxes under
Section 88.
ICICI Bank is the first bank to launch a public issue of bonds offering tax benefits
under section 88 of the Income-tax Act.







Major changes in ICICI Bank chronologically.
History of ICICI
1955 : The Industrial Credit and Investment Corporation of India Limited (ICICI) incorporated at the initiative of the World Bank, the Government of India and representatives of Indian industry, with the objective of creating a development financial institution for providing medium-term and long-term project financing to Indian businesses. Mr.A.Ramaswami Mudaliar elected as the first Chairman of ICICI Limited
: ICICI emerges as the major source of foreign currency loans to Indian industry. Besides funding from the World Bank and other multi-lateral agencies, ICICI also among the first Indian

companies to raise funds from International markets.
1956 : ICICI declared its first Dividend at 3.5%.
1958 : Mr.G.L.Mehta was appointed the 2nd Chairman of ICICI Ltd.
1960 : ICICI building at 163, Backbay Reclamation was inaugurated.
1961 : The first West German loan of DM 5 million from Kredianstalt was obtained by ICICI.
1967 : ICICI made its first debenture issue for Rs.6 crore, which was oversubscribed.
1969 : First two regional offices in Calcutta and Madras were opened.
1972 : Second entity in India to set-up merchant banking services.
: Mr. H. T. Parekh appointed as the third Chairman of ICICI.
1977 : ICICI sponsors the formation of Housing Development Finance Corporation. Managed its first equity public issue
1978 : Mr. James Raj appointed as the fourth Chairman of ICICI.
1979 : Mr.Siddharth Mehta appointed as the fifth Chairman of ICICI.
1982 : Becomes the first ever Indian borrower to raise European Currency Units.
: ICICI commences leasing business.
1984 : Mr. S. Nadkarni appointed as the sixth Chairman of ICICI.
1985 : Mr.N.Vaghul appointed as the seventh Chairman and Managing Director of ICICI.
1986 : ICICI first Indian Institution to receive ADB Loans. First public issue by an Indian entity in the Swiss Capital Markets.
: ICICI along with UTI sets up Credit Rating Information Services of India Limited, (CRISIL) India's first professional credit rating agency.

ICICI promotes Shipping Credit and Investment Company of India Limited. (SCICI)
: The Corporation made a public issue of Swiss Franc 75 million in Switzerland, the first public issue by any Indian equity in the



Swiss Capital Market.
1987 : ICICI signed a loan agreement for Sterling Pound 10 million with Commonwealth Development Corporation (CDC), the first loan by CDC for financing projects in India.
1988 : ICICI promotes TDICI - India's first venture capital company.
1993 : ICICI sets-up ICICI Securities and Finance Company Limited in joint venture with J. P. Morgan.
: ICICI sets up ICICI Asset Management Company.
1994 : ICICI sets up ICICI Bank.
1996 : ICICI becomes the first company in the Indian financial sector to raise GDR.




:ICICI announces merger with SCICI.
: Mr.K.V.Kamath appointed the Managing Director and CEO of ICICI Ltd
1997 : ICICI was the first intermediary to move away from single prime rate to three-tier prime rates structure and introduced yield-curve based pricing.
: The name "The Industrial Credit and Investment Corporation of India Limited " was changed to "ICICI Limited".
: ICICI announces takeover of ITC Classic Finance.
1998 : Introduced the new logo symbolizing a common corporate identity for the ICICI Group.
: ICICI announces takeover of Anagram Finance.
1999 : ICICI launches retail finance - car loans, house loans and loans for consumer durables.
: ICICI becomes the first Indian Company to list on the NYSE through an issue of American Depositary Shares.
2000 : ICICI Bank becomes the first commercial bank from India to list its stock on NYSE.
: ICICI Bank announces merger with Bank of Madura.
2001 : The Boards of ICICI Ltd and ICICI Bank approved the merger of ICICI with ICICI Bank.

2002 :
Moodys' assign higher than sovereign rating to ICICI.
: Merger of ICICI Limited, ICICI Capital Sercvices Ltd and ICICI Personal Financial Services Limited with ICICI Bank.

AWARDS AND RECOGNITION FOR ICICI BANK & erstwhile ICICI LTD

ICICI Bank
2004
• Best Consumer Internet Bank in India by Global Finance
• Best Corporate / Institutional Internet Bank in India by Global Finance
• Best Domestic Commercial Bank in India by Asiamoney
• Best Emerging Market Bank in India by Global Finance
• Best Overall Foreign Exchange Bank in India by Asiamoney Poll
• Best Bank of the Year in India by Finance Asia

• Best Retail Bank in India by Asian Banker
• Best Foreign Exchange Bank in India by Global Finance
• India's Most Admired Private Sector Bank by Business Barons
2003
• Best Multi-Channel Strategy 2003 by The Banker, UK
• Bank of the Year 2003 in India by The Banker, UK
• Bank of the Year 2003 in India by Global Finance
• DM Review Magazine -World Class Solution Award 2003 in the Business
Intelligence category for ICICI Bank’s Teradata enterprise data warehouse solution.
• Best Consumer Internet Bank in India by Global Finance
• Best Integrated Consumer Bank Site in the Asia /Pacific Region by Global
Finance
• Best Foreign Exchange Bank in India by Global Finance
• Best Trade Finance Bank in India by Global Finance
• Excellence in Retail Financial Services Award 2003 by The Asian Banker Business Today Selected ICICI Bank as one of the 16 Best Managed Companies in
India.

2002
• Best Managed Bank in Asia in a poll by Euromoney
• India’s top 5 most respected companies – Business World-IMRB Survey
• Excellence in Retail Banking award by Asian Bankers Journal
• Bank of the Year from the Emerging Markets by The Banker Magazine of UK
• Bank of the Year 2002, in India, by The Banker Magazine of UK
• Best Consumer Internet Bank in India by Global Finance
• Best Bank in India by Global Finance
• India's Most Admired Bank 2002 in the BB-TN Sofres Mode Poll

2001
• Best Retail Bank in India from the Asian Banker for the second year running.
• Product Innovation Award for Kid-e-bank account from the Asian Banker.
2000
• Best Bank Award by Global Finance.
• I-payment was selected as a finalist in the commercial credit product or services category in the Asian Banking Awards
• Featured amongst the best 15 bank web sites in the world reviewed by Forbes Global.
1999
• Best IT usage Award by TCS Limited and Computer Society of India.
• Asian Banking Award by the Asian Banker's Association for record collections under the Resurgent India Bonds Scheme.
1998
www.icicibank.com got commended rating from the Financial Times, London for two successive years.
• Cyber Corporate Award by the Economic Times and Microland Limited for making the best use of Internet for commercial purpose.




Erstwhile ICICI Ltd
ICICI
2002
• Ranked Third Best Employer in a Campustrack study amongst the students of the best business school in India conducted by ORG-MARG.
2001
• Mr.K.V.Kamath, MD and CEO won the Asian Business leader Award organized by CNBC Asia Pacific and TNT.
• Indian Express Marketing Excellence Award for "Most recalled advertisement on television".
• 'Best Presented Accounts' by the Institute of Chartered Accountants of India for the third year running.
• Ranked fifth in the survey of India's Most Respected Companies, conducted by Business World and IMRB.

2000
• 'Best CEO' for innovative HR practices to Mr. Kamath by World HRD Congress.
• National HRD Network Award 2000 for innovative HR practices.
• 'Rio Tinto Award for Long-term Commitment' by 'Worldaware' an UK -based charity organization, for companies showing strong commitment to development.
• Fourth leading Company of India - Far Eastern Economic Review
• Fourth best company to work for in India - in the Hewitt Associates and Business Today survey.













# Banking product structure change. [BY RBI]

Banks in India have traditionally offered mass banking products. Most common deposit products being Savings Bank, Current Account, Term deposit Account and lending products being Cash Credit and Term Loans. Due to Reserve Bank of India guidelines, Banks have had little to do besides accepting deposits at rates fixed by Reserve Bank of India and lend amount arrived by the formula stipulated by Reserve Bank of India at rates prescribed by the latter. PLR (Prime lending rate) was the benchmark for interest on the lending products. But PLR itself was, more often than not, dictated by RBI. Further, remittance products were limited to issuance of Drafts, Telegraphic Transfers, Bankers Cheque and InternalTransferoffunds.
In view of several developments in the 1990s, the entire banking products structure has undergone a major change. As part of the economic reforms, banking industry has been deregulated and made competitive. New players have added to the competition. IT revolution has made it possible to provide ease and flexibility in operations to customers. Rapid strides in information technology have, in fact, redefined the role and structure of banking in India. Further, due to exposure to global trends after Information explosion led by Internet, customers - both Individuals and Corporates - are now demanding better services with more products from their banks. Financial market has turned into a buyer's market. Banks are also changing with time and are trying to become one-stop financial supermarkets. Market focus is shifting from mass banking products to class banking with introduction of value added and customized products.

A few foreign & private sector banks have already introduced customised banking products like Investment Advisory Services, SGL II accounts, Photo-credit cards, Cash Management services, Investment products and Tax Advisory services. A few banks have gone in to market mutual fund schemes. Eventually, the Banks plan to market bonds and debentures, when allowed. Insurance peddling by Banks will be a reality soon. The recent Credit Policy of RBI announced on 27.4.2000 has further facilitated the entry of banks in this sector. Banks also offer advisory services termed as 'private banking' - to "high relationshipvalue"clients.

The bank of the future has to be essentially a marketing organisation that also sells banking products. New distribution channels are being used; more & more banks are outsourcing services like disbursement and servicing of consumer loans, Credit card business. Direct Selling Agents (DSAs) of various Banks go out and sell their products. They make house calls to get the application form filled in properly and also take your passport-sized photo. Home banking has already become common, where you can order a draft or cash over phone/internet and have it delivered home. ICICI bank was the first among the new private banks to launch its net banking service, called Infinity. It allows the



user to access account information over a secure line, request Cheque books and stop payment, and even transfer funds between ICICI Bank
Accounts. Citibank has been offering net banking to its Suvidha program to customers.

Products like debit cards, flexi deposits, ATM cards, personal loans including consumer loans, housing loans and vehicle loans have been introduced by a numberofbanks.

Corporates are also deriving benefit from the increased variety of products and competition among the banks. Certificates of deposit, Commercial papers, Non-convertible Debentures (NCDs) that can be traded in the secondary market are gaining popularity. Recently, market has also seen major developments in treasury advisory services. With the introduction of Rupee floating rates for deposits as well as advances, products like interest rate swaps and forward rate

agreements for foreign exchange, risk management products like forward contract, option contract, currency swap are offered by almost every authorized dealer bank in the market. The list is growing. Public Sector Banks like SBI have also started focusing on this area. SBI plans to open 100 new branches called Personal Banking Branches (PBB) this year. The PBBs will also market SBI's entire spectrum of loan products: housing loans, car loans, personal loans, consumer durable loans, education loans, loans against share, financing against gold.
 

pratikbharti

MP Guru
ICICI Bank warned against selling unsolicited policies

Anti-trust body MRTPC has issued a stern warning to ICICI Bank for selling insurance policies to its credit card holders without their consent and has asked it to stop the practice.

Acting on a complaint filed by one of its credit card and bank account holders to whom the bank sent an ICICI Lombard General policy without consent, MRTPC bench headed by Justice O P Dwivedi passed a cease and desist order and held it as an unfair trade practice to promote its business.

"The practice of issuing Lombard policy in the name of the complainant without his request or consent would clearly amount to adopting an unfair trade practice by the bank to promote its business," the bench said. "Accordingly, we direct the respondent to 'cease and desist' from adopting the same in future," it added.

The Commission's direction came on a complaint filed by one Leeladhar Pant, a holder of both credit card and savings account holder of the bank, to whom ICICI sent a group death insurance policy.

Later, the bank further directed him to pay Rs 460 for the ICICI Lombard policy for which he never opted. Pant made several requests to the bank to remove this cover but was not entertained and instead he was asked to pay Rs 13,000 for the policy.

Despite repeated request to send him a correct bill, ICICI Bank sent him another bill of Rs 34,000 and made an auto debit of Rs 5,600 from his saving account.

Feeling aggrieved, Pant approached the Commission requesting it to ask the bank to cancel the policy and return the amount deducted as charge for it. Interestingly, ICICI bank never bothered to appear before the commission except once. It did not even file replies to notices issued to it.

Meanwhile, the Commission found that all the documents filed by the complainant were genuine and decided to proceed further.

"In absence of any version or evidence to the contrary, we find no reason to disbelieve the deposition of the complaints contained in his affidavit," said the Commission and directed ICICI to cancel the policy issued to Pant and delete all debit entries made in his account for it.

The Commission also directed ICICI to file an affidavit for compliance of its order within six weeks and to issue fresh statement of account to Pant.


Source: http://www.rediff.com
 
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