Profile: ICICI Bank Ltd (IBN)
23 May 2016
ICICI Bank Limited, incorporated on January 5, 1994, is a banking company. The Bank is a financial services group providing a range of banking and financial services, including commercial banking, retail banking, project and corporate finance, working capital finance, insurance, venture capital and private equity, investment banking, broking and treasury products and services. The Bank's operating segments include Retail Banking, Wholesale Banking, Treasury, Other Banking, Life Insurance, General Insurance and Others. Retail banking includes exposures of the Bank, which satisfy the four criteria of orientation, product, granularity and low value of individual exposures for retail exposures laid down in Basel Committee on Banking Supervision document International Convergence of Capital Measurement and Capital Standards: A Revised Framework. Wholesale banking includes all advances of the Bank to trusts, partnership firms, companies and statutory bodies. Treasury includes the entire investment and derivative portfolio of the Bank, ICICI Eco-net Internet and Technology Fund, ICICI Equity Fund, ICICI Emerging Sectors Fund, ICICI Strategic Investments Fund and ICICI Venture Value Fund.
Other banking includes leasing operations and other items not attributable to any particular business segment of the Bank. Further, it includes the Bank's banking subsidiaries, such as ICICI Bank UK PLC, ICICI Bank Canada and ICICI Bank Eurasia LLC. Life insurance represents results of ICICI Prudential Life Insurance Company Limited. Others includes ICICI Home Finance Company Limited, ICICI Venture Funds Management Company Limited, ICICI International Limited, ICICI Securities Primary Dealership Limited, ICICI Securities Limited, ICICI Securities Holdings Inc., ICICI Securities Inc., ICICI Prudential Asset Management Company Limited, ICICI Prudential Trust Limited, ICICI Investment Management Company Limited, ICICI Trusteeship Services Limited, TCW/ ICICI Investment Partners Limited, ICICI Kinfra Limited, I-Ven Biotech Limited and ICICI Prudential Pension Funds Management Company Limited.
As of at March 31, 2015, the Bank had a network to 4,050 branches and 12,451 automated teller machines (ATMs). Of these, 52% of the branches were in rural and semi-urban areas. The Bank also provided automated Touch Banking branches, available around the clock. As of March 31, 2015, the Bank had 101 Touch Banking branches across 33 cities. The Bank has also deployed 1,000 self-service kiosks for accepting cash, where anyone (even non-account holders) can deposit cash in an ICICI Bank account in a completely automated manner with the account receiving instant credit instead of filling up pay-in-slip and manually depositing cash at the teller counter. To avail this service, users have to simply use their debit card and pin number or enter the account number at the kiosk. These self-service kiosks are spread across 390 cities, with about 131 available at branches across India and over one-fourth being available round-the-clock.
The Bank offers a range of products and services leveraging digital technology and mobile communications. It offers Pockets, a digital bank. Anyone, including those who are not the Bank's existing customers can download the e-wallet, fund it from any domestic bank account and start transacting immediately. This is the only e-wallet, which allows users to transact on any Website or mobile application in India. It allows users to instantly send/request money to/from any e-mail id, mobile number, friends on Facebook and bank account. The users can also pay bills, recharge prepaid mobiles, book movie tickets, order food, send physical and e-gifts and split and share expenses with friends by using this e-wallet. Users can choose to add a savings account to the wallet, which allows them to earn interest on their idle money.
The Bank offers contactless debit and credit cards, enabling its customers to make electronic payments by just waving the card close to the merchant terminal instead of dipping or swiping them. In the field of transit payments, the Bank tied up with metro rail operators in Delhi, Mumbai, Bengaluru and Hyderabad to offer ICICI Bank Unifare Metro Card. The card offers the dual benefit of an ICICI Bank credit or debit card and the metro operator's smart card. The Bank offers Tab Banking using which the Bank's executives assist customers in opening a bank account at the time and place of convenience for customers. The Bank also has integrated Aadhaar-based electronic know your customer (e-KYC) process with Tab Banking. The Bank has also a mobile application called iLoans, which allows customers to check their loan details on their mobile phones. The lending portfolio is diversified and comprises manufacturers, traders, service providers and importers/exporters.
The Bank offers a suite of banking products and solutions to Small and Medium Enterprises (SMEs) for meeting their business and growth requirements. The Bank offers dedicated desks in 360 branches catering to SMEs and has teams for current accounts, trade finance, cash management services and doorstep banking. The Wholesale Banking Group focuses on servicing corporate customers through financial solutions for enabling business in India and overseas geographies. The Bank analyzes business and financial requirements of its clients and providing solutions through various products, such as working capital finance, export finance, trade, transaction and commercial banking and rupee and foreign currency term loans. The Commercial Banking Group provides support in terms of managing banking transactions, trade-based requirements and cash management requirements of corporate customers. The Syndications Group offers loan syndication market for corporate and project finance transactions. It provides primary and secondary loan distribution market and leverages on relationships with financial market participants, such as banks, financial institutions, non-banking financial companies and insurance companies. The Structured Finance Group is engaged in developing tailor-made structures for deals across the entire financial spectrum including acquisition financing, asset financing and structured trade.
The Bank's international banking is focused on providing end-to-end solutions for the international banking requirements of its Indian corporate clients, leveraging economic corridors between India and the rest of the world and establishing ICICI Bank as the preferred bank for Non-Resident Indians (NRI) in global markets. The Bank's international footprint consists of subsidiaries in the United Kingdom and Canada, branches in the United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Dubai International Finance Centre and Qatar Financial Centre and representative offices in the United Arab Emirates, China, South Africa, Bangladesh, Malaysia and Indonesia. The Bank's wholly owned subsidiary ICICI Bank UK Plc has nine branches in the United Kingdom and a branch each in Belgium and Germany. ICICI Bank Canada has eight branches.
The Bank's rural expansion involves multiple channels, distribution network and products and services to suit the financial needs of the market. At the end of fiscal 2015, the Bank had over 2,100 branches in rural and semi-urban locations, comprising 52% of the Bank's branch network. Of these, 460 branches are in villages, which were previously unbanked. The Bank offers institutional credit to rural customers at their doorstep through its relationship banking approach. The Bank offers various types of loans covering the entire agricultural value chain, including loans to seed/input dealers, crop loans and loans for purchasing irrigation equipment, raising cattle and purchasing tractors and other farm equipment. The Bank also offers financial solutions to commodity traders and processors and to small and medium enterprises engaged in agriculture-linked businesses operating in rural and semi-urban areas. It also provides loans against warehouse receipt, loans to Self Help Groups (SHGs) and loans to Micro Finance Institutions (MFIs) for lending to customers. Through its SHG Bank linkage program, ICICI Bank caters to over 1.3 million women.
The treasury operation at ICICI Bank comprises the Proprietary Trading Group, Markets Group and Asset Liability Management Group. The Proprietary Trading Group manages investments within risk limits as approved by the investment policy of the Bank. The Bank is also an arranger for debt private placements of bonds/debentures and has dedicated sales coverage of institutional debt investors across various segments. In fiscal 2014, the Bank arranged the first Basel III Additional Tier 1 bond issue in India by a public sector bank and the first long-term infrastructure bond issued by a bank. The Bank also engages with regulators, policy makers and industry bodies at various forums for the structural development of the market. The Markets Group offers foreign exchange and derivative solutions to clients. It provides clients with regular market updates, as well as quantitative and qualitative research on topics related to macroeconomics and financial markets.
The Bank also offers mobility based solutions, such as Insta Banking, mPassbook, Video Banking, iTrack and iLoans. Insta Banking enables customers to initiate transactions at any time through technology-based channels, such as Internet and ATMs, up to seven days prior to visiting the branch. mPassbook helps customers to view recent savings, credit card and public provident fund account transactions on their mobile phone. Video Banking enables the Bank's Wealth and non-resident Indian (NRI) customers to carry out a video chat with a customer-care executive. iTrack lets customers know the status of deliverables, including check book, debit card/ATM card, bank statements, which are dispatched by the Bank. In addition, the Bank offers a range of products, which includes Express eTransfer through which customers can send money to any bank in India within four hours and Call2Remit for transfer of money anytime, anywhere by simply calling the Bank's around the clock customer care center. The Bank also deployed kiosks, which offer remittance services to India from Bahrain and Singapore.
ICICI Bank Ltd
ICICI Bank Towers, Bandra-Kurla