Profile: ICICI Bank Ltd (IBN)
27 May 2015
ICICI Bank Limited (the Bank), incorporated on January 5, 1994, is a banking company. The Bank, together with its subsidiaries, joint ventures and associates, is a diversified 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. It operates under four segments: retail banking, wholesale banking, treasury and other banking. 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. Wholesale Banking includes all advances to trusts, partnership firms, companies and statutory bodies, which are not included under Retail Banking. Treasury includes the entire investment portfolio of the Bank. Other Banking includes hire purchase and leasing operations and other items. As of March 31, 2012, the Bank had 17 subsidiaries. During the fiscal year ended March 31, 2013, the Company added 348 branches and 1,475 automated teller machines (ATMs) to its network, taking its branch and ATM count to 3,100 and 10,481 respectively at March 31, 2013. In June 2014, ICICI Bank Ltd acquired a 5.62% interest in Gokaldas Exports Ltd.
The branch network serves as an integrated channel for deposit mobilization, selected retail asset origination and distribution of third-party products, as well as the focal point for customer service. During fiscal 2011, the Bank continued its focus on increasing the proportion of low-cost retail deposits in its funding base. During fiscal 2011, its retail disbursements increased as it focused on opportunities in residential mortgages, vehicle finance and construction equipment finance. The Company also continued to focus on cross-selling new products and products of its life and general insurance subsidiaries to its existing customers. As of March 31, 2013, its ATMs offer services such as opening fixed deposits, payment of credit card and utility bills, payment of insurance premium, mobile re-charges and ultra fast cash.
The Company offers banking solutions to small and medium enterprises across industry segments. The Company supports the growth of the small and medium enterprises sector while adopting a cluster-based financing approach for enterprises with a homogeneous profile in industries, such as infrastructure, engineering, information technology, education, life-sciences and agri-based businesses. The Company also offers supply chain financing solutions to the channel partners of large corporates.
The Bank offers a suite of corporate banking products, including rupee and foreign currency debt, working capital credit, structured financing, loan syndication and commercial banking products and services. The Company also puts in place product specific teams with a view to focus on designing financial solutions for clients spread across structured finance, project finance, loan syndication and markets. The relationship team also works with its Markets Group to assist customers in devising and executing risk management strategies to address foreign currency, interest rate and liquidity risks. Its loan syndication franchise enables the Bank to structure, underwrite and syndicate rupee and foreign currency debt with Indian and offshore investors. The Bank has built robust sector-specific syndication skills across project finance, merger and acquisition (M&A) financing and structured finance to provide optimal financing solutions.
The Company’s international banking business is focused on meeting the foreign currency needs of its Indian corporate clients and partnering them in their global expansion, taking select trade finance exposures linked to imports to India. ICICI Bank has subsidiaries in the United Kingdom, Russia 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, Thailand, Malaysia and Indonesia. The Bank’s wholly owned subsidiary, ICICI Bank UK PLC, has 11 branches in the United Kingdom and a branch each in Belgium and Germany. ICICI Bank Canada has nine branches. ICICI Bank Eurasia Limited Liability Company has one branch.
The Company develops products and service offerings to meet the requirements of the Non Resident Indian (NRI) community. The Bank launched I-Express, an instant cross-border money transfer option for NRIs through its select partners in the Middle East. The I-Express facility offers the remitter an option of visiting any partner outlet for instant credit into the beneficiary account maintained with ICICI Bank in India, at no extra cost. The Company also launched Fixed Rupee on Money2India.com, a facility that enables NRIs to send the exact rupee amount remittance to India since the exchange rate is confirmed at the time of initiating the remittance.
Inclusive and Rural Banking
Inclusive and Rural Banking include offering credit to the rural market through the Bank's branches and dedicated field teams and financial inclusion through business correspondents. The Bank focuses on improving its product and service offerings to meet the requirements of all participants in the rural market, including farmers, traders, commission agents, small processors and other medium agri-corporates. The Bank focuses on building capacity to implement its financial inclusion plan. The Bank also focused on opening accounts for routing benefit payments under various government schemes and has received the mandate for opening accounts of individuals under these schemes in certain states.
The Bank has also identified 25 business correspondents having a network of over 7,500 customer service points, to service these customers. The Bank provides basic financial services to the unbanked and underbanked
population comprising small and marginal farmers, daily wage labourers, beneficiaries of government. Around 47% of the Bank’s branches are in rural and semi-urban areas
The Bank provides provide foreign exchange and derivative products and services to customers through its Markets Group. These products and services include foreign exchange products for hedging currency risk, foreign exchange and interest rate derivatives, such as options and swaps and bullion transactions.
ICICI Bank Ltd
ICICI Bank Towers, Bandra-Kurla