Financial Services Offer By Commercial Bank

CHP 1: OVERVIEW OF BANKING

INTRODUCTION TO BANK
A bank has been described as an institution engaged in accepting deposits and granting loans. It is the institution which deals in money and credit. It can also be described as an institution which borrows idle resources, makes fund available to those who need it and helps in cheap remittance of money from one place to another. In the modern time term bank is used in wider term. Now it does not refer only to particular place of lending and depositing money but it also acts as an agent which looks after the various financial problems of its customers.

HISTORY OF BANKS:
The banking system in India is based on British banking company which is largely branch banking. Commercial banks in India were started during the latter half of 19th century Bank of Bengal, Bank of Bombay and Bank of Madras were later amalgamated to form one bank called as Imperial bank of India under the Imperial bank of India Act 1920. The Imperial bank carried with business of commercial bank manages the public debt office of central and state government. The second half of 19th century saw establishment of Bank of Baroda, Allahabad bank, and Punjab National Bank. These banks were set up by merchants and traders to combined trading with banking. These led to the series if failures of banks. The strengthening of banking system took place after the establishment of Reserve Bank of India, 1939 as is empowers to regulate the banking money, inspection of mergers and acquisition in terms of Banking Companies Act 1949 which later came to be known as Banking Regulation Act 1949.

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OVERVIEW OF ICICI BANK CHP 1.1: INTRODUCTION OF ICICI BANK

ICICI Bank is the largest private sector bank in India in terms of market capitalization. It is also the second largest bank in India in terms of assets with a total asset of Rs. 3,674.19 billion (US$ 77 billion) as on June 30, 2009, the total profit after tax has been Rs. 8.78 billion. Formerly known as Industrial Credit and Investment Corporation of India, ICICI Bank has an extensive network of 1,544 branches with about 4,816 ATMS located across India and in 18 other countries. ICICI Bank serves about 24 Million customers throughout the world. It is considered as one of the Big Four Banks in India along with State Bank of India, HDFC Bank and Axis Bank.

ICICI Bank provides a wide range of banking products and financial services to its retail and corporate customers. It has a wide variety of delivery channels and specialized affiliates and subsidiaries that ensure the flow of its offerings in the areas like investment banking, venture capital, life and non-life insurance and asset management. This bank is also Indias largest credit card issuer. The equity share of ICICI Bank is listed on various stock exchanges like NSE, BSE, Calcutta Stock Exchange and Vadodara Stock Exchange etc. Its ADRs are also listed on the New York Stock Exchange.

ICICI Bank also has the largest international balance sheet among all the banks in India. It is also expanding its business in the overseas market at an enviable pace. In 02 September 2008, ICICI Bank recorded a 1.15% growth in net profit over 02 September 2007 to reach at Rs 1,014.21crores. The current and savings account (CASA) ratio of bank also went up from 25% in 2007 to 30% in 2008.

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Vision Our vision is a world free of poverty in which every individual has the freedom and power to create and sustain a just society in which to live.

Mission Our mission is to create and support strong independent organizations which work towards empowering the poor to participate in and benefit from the Indian growth process.

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CHP 1.2: HISTORY OF ICICI BANK

ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution, and was its wholly owned subsidiary. ICICIs shareholding in ICICI Bank was reduced to 46% through a public offering of shares in India in India in fiscal 1998. ICICI Bank was formed in1995 at the initiative of the World Bank, the Government of India and representatives of Indian industry. The principal objective was to create a development financial institution for providing mediumterm and long-term project financing to Indian businesses. In the 1990s, ICICI transformed its business from a development financial institution offering only project finance to a diversified financial services group offering a wide variety of products and services, both directly and through a number of subsidiaries and affiliates like ICICI Bank. In 1999, ICICI become the first Indian company and the first bank or financial institution from non-Japan Asia to be listed on the NYSE. After consideration of various corporate structuring alternatives in the context of the emerging competitive scenario in the Indian banking industry, the management of ICICI & ICICI Bank formed the view that the merger of ICICI with ICICI Bank would be optimal strategic alternative for both entities and would create the optimal legal structure for the ICICI groups universal banking strategy. In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger of ICICI and two of its wholly-owned retail finance subsidiaries, ICICI Personal Financial Services Limited and ICICI Capital Services Limited, with ICICI Bank. The merger was approved by shareholders of ICICI and ICICI Bank in January 2002, by the High Court of Gujarat at Ahmadabad in March 2002, and by the High Court of Judicature at Mumbai and the Reserve Bank of India in April 2002. Consequent to the merger, the ICICI group's financing and banking operations, both wholesale and retail, have been integrated in a single entity.

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CHP 1.3: OBJECTIVE OF ICICI BANK

The main objectives of this project are the following: To study about ICICI BANK and its related aspects like its products & services, history, organizational structure, subsidiary companies etc. The Industrial Credit and Investment Corporation of India was registered as a private limited company in 1955. It was set up as a private sector development bank to assist and promote private industrial concerns in the country. (a) To assist in the creation, expansion and modernization of private concerns; (b) To encourage the participation of internal and external capital in the private concerns. (c) To encourage private ownership of industrial investment.

SWOT Analysis of ICICI bank 1) Strengths of ICICI Bank ICICI is the second largest bank in terms of total assets and market share Total assets of ICICI is Rs. 4062.34 Billion and recorded a maximum profit after tax of Rs. 51 billion and located in 19 countries One of the major strength of ICICI bank according to financial analysts is its strong and transparent balance sheet. ICICI bank has first mover advantage in many of the banking and financial services. ICICI bank is the first bank in India to introduce complete mobile banking solutions and jewelry card The bank has PAN India presence of around 2,567 branches and 8003 ATMs

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ICICI bank is the first bank in India to attach life style benefits to banking services for exclusive purchases and tie-ups with best brands in the industry such as Nakshatra, Asmi, Ddamas etc ICICI bank has the longest working hours and additional services offering at ATMs which attracts customers Marketing and advertising strategies of ICICI have good reach compared to other banks in India

2) Weaknesses of ICICI Bank Customer support of ICICI section is not performing well in terms of resolving complaints There are lot of consumer complaints filed against ICICI The ICICI bank has the most stringent policies in terms of recovering the debts and loans, and credit payments. They employ third party agency to handle recovery management There are also complaints of customer assault and abuse while recovering and the credit payment reminders are sent even before the deadlines which annoys the customers The bank service charges are comparatively higher The employees of ICICI are bank in maximum stress because of the aggressive policies of the management to win ahead in the race. This may result in less productivity in future years

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3) Opportunities of ICICI Bank Banking sector is expected to grow at a rate of 17% in the next three years The concept of saving in banks and investing in financial products is increasing in rural areas as more than 62% percentage of Indias population is still in rural areas. As per 2010 data in TOI, the total number b-schools in India are more than 1500. This can ensure regular supply of trained human power in financial products and banking services Within next four years ICICI bank is planning to open 1500 new branches Small and non performing banks can be acquired by ICICI because of its financial strength ICICI bank is expected to have 20% credit growth in the coming years. ICICI bank has the minimum amount of nonperforming assets

4) Threats of ICICI Bank RBI allowed foreign banks to invest up to 74% in Indian banking Government sector banks are in urge of modernizing the capacities to ensure the customers switching to new age banks are minimized HDFC is the major competitor for ICICI, and other upcoming banks like AXIS, HSBC impose a major threat In rural areas the micro financing groups hold a major share Though customer acquisition is high on one side, the unsatisfied customers are increasing and make them to switch to other banks

Financial Services Offer By Commercial Bank

CHP 1.4: FEATURES OF ICICI BANK

The important features of the functioning of the ICICI arc as given below: The financial assistance as provided by the ICICI includes rupee loans, foreign currency loans, guarantees, underwriting of shares and debentures, and direct subscription to shares and debentures. Originally, the ICICI was established to provide financial assistance to industrial concerns in the private sector. But, recently, its scope has been widened by including industrial concerns in the public, joint and cooperative sectors. ICICI has been providing special attention to financing riskier and nontraditional industries, such as chemicals, petrochemicals, heavy engineering and metal products. These four categories of industries have accounted for more than half of the total assistance. Of late, the ICICI has also been providing assistance to the small scale industries and the projects in backward areas. Along with other financial institutions, the ICICI has actively participated in conducting surveys to examine industrial potential in various states. In 1977, the ICICI promoted the Housing Development Finance Corporation Ltd. to grant term loans for the construction and purchase of residential houses. Since 1983, the ICICI has been providing leasing assistance for computerization, modernization and replacement schemes; for energy conservate; for export orientation; for pollution controller balancing and expansion: etc. The ICICI has not contributed much to reduce regional disparities. About three-fifth of the total assistance given by the ICICI has been received by the advanced states of Maharashtra, Gujarat and Tamil Nadu. With effect from April 1, 1996, Shipping Credit and Investment company of India ltd, (SCICI) was merged with ICICI. The ICICI Ltd. was merged with ICICI Bank Ltd. effective from May 3, 2002
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Financial Services Offer By Commercial Bank

CHP 2: FUNCTIONS OF COMMERCIAL BANK

Modern Commercial Banks perform a large number of functions and services to industry and commerce. It is not possible t make an exhaustive list of its functions and services as they are diverse, varied and ever-expanding. The functions of a bank are increasing day by day depending upon the environment prevailing in the country. There cannot be a standard pattern of banking functions that can hold good for all the countries, or even for the same country at different periods of time. It is not surprising, therefore that banks in developing countries perform many such functions as to suit their particular requirements and have branched out into new areas. Banks in modern times are doing a large number of non-traditional functions. They have thrown their conservative approach and are doing their best to help all sectors of the economy by adopting progressive and enlightened approach. The functions and services rendered by modern banks can be grouped under the following heads: A) Primary Functions. B) Secondary Functions.

Financial Services Offer By Commercial Bank

FUNCTIONS OF BANKS
Though borrowing and lending constitute the main functions of banking, yet they are not only functions of commercial banks. Commercial banks are involved in diversified activities and perform varieties of function. The functions of a modern bank are classified under the following heads.

CHART: FUNCTION OF BANKS

ACCEPTING OF DEPOSITS

AGENCY FUNTIONS

FUNCTIONS OF BANKS

ADVABCE OF LOANS

OTHER FUNCTIONS

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Financial Services Offer By Commercial Bank

CHP 2.1 PRIMARY FUNCTIONS

Broadly speaking there are two functions which comes under this category: 1) Accepting of Deposits 2) Advancing Loans

ACCEPTING OF DEPOSITS
This is an important function because banks mainly depend on the funds deposited with them by the public. By offering various types of deposit accounts, banks mobilize the savings of the community. A banks financial s trength is measured by its ability to attract the various types of deposits. People who have surplus money deposit the same with a bank for safe keeping. The commercial bank receives deposits on the following four types of accounts:

CHART: ACCEPTING OF DEPOSITS

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Financial Services Offer By Commercial Bank

CHP 2.1 A (i): SAVINGS BANK ACCOUNT

Savings Bank Accounts are meant to promote the habit of saving among the citizens while allowing them to use their funds when required. The main advantage of Savings Bank Account is its high liquidity and safety. On top of that Savings Bank Account earns moderate interest too. The rate of interest is decided and periodically reviewed by the Government of India. Presently, the rate of interest is 3.5% compounded half yearly.

DEFINITON Investopedia explains 'Savings Account' Because savings accounts almost always pay lower interest rates than Treasury bills and certificates of deposit, they should not be used for long-term holding periods. Their main advantages are liquidity and superior rates compared to checking accounts. Most modern savings accounts offer access to funds through visits to a local branch, over the internet and through automated teller machines. Savings accounts are accounts maintained by retail financial institutions that pay interest but cannot be used directly as money (for example, by writing a cheque). These accounts let customers set aside a portion of their liquid assets while earning a monetary return.

ICICI Bank offers a host of products and services to its clients. The various types of services are as follows: 1) Deposits Savings Account Advantage Deposit Special Savings Account Life Plus Senior Citizens Savings Account
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Financial Services Offer By Commercial Bank

Young Stars Savings Account Advantage Woman Savings Account Family banking Recurring Deposits Fixed Deposits Current Account

ICICI Bank Savings Accounts Features The ICICI Bank International debit card is a debit-cum-ATM card providing you with the convenience of acceptance at merchant establishments and cash withdrawals at ATMs. The next time you want to withdraw cash from your ICICI Bank Savings account, just walk into any bank's ATM and use your ICICI Bank ATM-cum-Debit card for free. The above benefit is available free of cost for the first 5 transaction per month upto Rs 10,000 per transaction. Money Multiplier Facility Internet Banking is offered free of cost. Anywhere Banking - This facility entitles the account holder to withdraw or deposit cash upto a limit of Rs.50,000 across all ICICI Bank branches. You can give us various types of standing instructions like transferring to fixed deposit accounts at regular intervals. An average monthly balance of Rs.10,000 only in metro and urban locations, Rs.5,000 only in semi-urban and Rs. 2,000 only in rural locations. Nomination facility is available. Interest is payable half-yearly.

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Financial Services Offer By Commercial Bank

SILVER SAVINGS ACCOUNT

Silver Savings Account - Features ICICI Banks Silver Savings Account entitles you to select privileges and offers. The ICICI Bank International VISA debit card is a debit-cum-ATM card providing you with the convenience of acceptance at merchant establishments and cash withdrawals at ATMs. Money Multiplier Facility. Internet Banking is offered free of cost. You can give us various types of standing instructions like transferring to fixed deposit accounts at regular intervals. Nomination facility is available. Interest is payable half-yearly.

The eligibility criteria for opening an ICICI Bank Silver Savings Account? The Silver Savings Account brings to you exclusive benefits, especially created for valuable customers like you. To retain membership of this elite Silver Savings circle, all you need to do is maintain a minimum monthly average balance (MAB) of Rs.25,000 in your Savings Account. If you do not maintain the required minimum balances for two consecutive quarters, Silver Savings Account benefits will be withdrawn. The minimum balance required to be maintained for an ICICI Bank Silver Savings Account. The minimum monthly average balance (MAB) to be maintained in your Silver saving Account of 25000.

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Financial Services Offer By Commercial Bank

SPECIAL SAVING SCHEMES

Special Savings Account: ICICI Banks Special Savings Account provides comprehensive banking services to non profit motive organizations like Trusts, Associations, Societies, Clubs, NGOs, Hospitals, Educational and Research Institutes and section 25 companies and entities eligible for a savings account as per RBI Guidelines . The ICICI Bank Edge

Free multi city chequebook facility All cheques issued by you will be payable at par at various ICICI Bank branches across the country Money Multiplier Facility On your request a Fixed Deposit is linked to your Special Savings Account enabling you to enjoy high returns and maximum liquidity. To know more, No penalty for non-maintenance of minimum balances in the accounts. Internet Banking Phone Banking Free Anywhere banking Free collection of outstation cheques Free monthly account statements Inward remittance through Money2India for FCRA approved trusts Supplementary Savings Solutions with added features

Features of the Money Multiplier Facility offered for Special Saving Scheme

Minimum balance in Special Saving Account should be Rs. 25,000 to generate a linked Fixed Deposit Fixed Deposit request will be made in multiples of Rs. 5,000 only. You can have more than one Fixed Deposit linked to the same Special Saving Account. You will have to give a specific request for each Fixed Deposit creating and linking. All Fixed deposit linked to the account will be enabled for automatic reverse sweep in multiples of Rs. 5,000 when the balance in Special Saving Account falls below Rs. 10,000.
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Financial Services Offer By Commercial Bank

Life Plus Senior Citizens Account

ICICI Bank's Senior Citizens Savings Scheme (SCSS) is the safest and the most convenient investment option for your life savings. Its credibility is further escalated by the fact that it is a Government of India product. Additionally, it offers the highest interest to depositors, 9% interest per annum. A Savings Account Service which offers convenience for those who are 60 year and above. Privilege Banking Variants are available on Life Plus Senior Citizen account. Senior Citizens Savings Scheme Details: Senior Citizens Savings Scheme (SCSS) is a Government of India Product. 9% interest offered to depositors. Since the product is offered by Govt of India, this product is one of the most Safest Investment Option. Premature closure of account is possible after one year from the date of opening the account.(Charges applicable). Advantages of ICICI Banks Senior Citizens Savings Account: Higher interest rates on Team Deposits. Free special senior citizens Life Plus Debit Card Money Multiplier Facility Anywhere Banking facility-access your account through any ICICI Bankbranch, ATM or Phone Banking. Nomination Facility available Monthly Average Balance requirement of Rs 5000 Facility of Direct Credit of Interest to ICICI Bank Account.

Account Statement containing the details of Deposit Balance & transactions. Designated Senior Citizen desk at all ICICI Bank branches.
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Financial Services Offer By Commercial Bank

Young Stars Savings Account

We teach your child to manage their personal finances through a savings account. Advantage of Young Stars Savings Account Open a Kids Savings Account, Fixed Deposit or a Recurring Deposit. Free Personalized Cheque Book. Free international Debit Card on request Daily withdrawal and spends of upto Rs 5000 (choice of limit on debit card available) Free Internet Banking Montly Average Balance (MAB) requirement of Rs 5000

Advantage Woman Savings Account

An account for the independent woman of today that will help her save for the future while enjoying the present. Special international womans Debit Card with lots of offers Free Unlimited Access to any banks ATM Bill Pay facility & Multi channel access Free usage of payable-at-par cheque book Nomination facility available Zero balance facility with an RD of rs 2000/- or montly Average Balance (MAB) requirement of rs 10,000/-.

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Family Banking Superior product benefits of privilege Banking, Wealth Management and Global Private Client (GPC) available to all the members of your family while the required minimum balance can maintained in any one of the accounts. Advantage of Family Banking
Access to superior benefits for the entire family. Flexibility to maintain balances across amount. Lower minimum balance requirement at individual customer level Single family Bank- convenience for the entire family and easier funds management.

PROFESSIONAL SAVINGS ACCOUNT

At ICICI Bank, the staffs always strive to cater to all the present and emerging financial needs of our customers. ICICI Bank Professional Savings Account is an exclusive set of banking and financial services, catering to the specific needs of discerning professionals. It brings together a host of services, privileges and lifestyle benefits.

Access to Privilege Banking Zone Dedicated Relationship Manager International Debit Card with insurance coverage Facility to link with Current Account under CASA Family Anywhere Banking with higher limits Daily account balance alerts Multi-city cheque book with 25 leaves And many more.

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Financial Services Offer By Commercial Bank

CHP 2.1 A (ii): RECURRING DEPOSITS

It is a saving avenue which works like the systematic investment plan of a mutual fund, wherein a particular amount of money is deducted from your account every month. You have to apply for a recurring deposit account and ask the bank to deduct the stipulated amount from your savings or current account every month. Your deposit can also be paid through internet banking. Almost all banks offer this scheme and you can invest as little as Rs 5 with public sector banks or, Rs 500 with private banks. The investment tenure ranges from a minimum of six months to a maximum of 10 years. The date of monthly instalments will depend on the date on which you open your account. If you started on June 1, 2011, your installments will be deducted on 1st of every month, thereafter. You will get a passbook which will contain a record of all the transactions. You can either have an individual account or apply jointly with any family member, even a minor.

RECURRING DEPOSIT ACCOUNT ICICI Bank Recurring Deposits are an ideal way to invest small amounts of money every month and end up with a large kitty on maturity. High recurring billing and recurring payments can be a drain on your finances and hence large investments may seem a plan away. Let us help you in processing your recurring payment through our recurring billing software that keeps track of your investments with us. This can be easily availed of through a recurring account online that comes with letting us serve you through Internet banking. You may even transfer funds through Internet banking into your recurring account. A recurring account transfer gets done in seconds through Internet banking.

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FEATURES OF RECURRING DEPOSITS

With our recurring deposits you can avail a host of facilities with ICICI Bank. You may check on recurring account receivable, recurring account payable, recurring account fees and all recurring debit account transactions. A recurring deposit account with ICICI Bank allows you a loan against the deposit. Our new recurring deposit account also has a special feature - Nonapplicability of Tax Deduction at Source (TDS). The minimum balance of deposit is Rs.500 per month and thereafter in multiples of Rs.100. The tenure ranges from 6 months to a maximum period of 10 years, recurring deposit of 3 months thereafter. The recurring deposit also comes with a nomination facility. An ideal way to invest small amounts of money every month and end up with up with a large amount on maturity

Encourages savings without stress on your finances. High rates of interest (identical to the fixed deposit rates). Non-applicability of Tax Deduction at Source (TDS). Nomination Facility available Loan Facility available Minimum Balance** The minimum balance of deposit is Rs. 500 per month and thereafter, in multiples of Rs. 100. Period of Deposit

The minimum period is 6 months, and thereafter in multiples of 3 months.

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Tax on Recurring Deposits First, what I do know for sure RDs are not tax free! While doing research for this article I came across a few forums where people were asking if interest income from RDs is tax free or not. I dont know what the origin for the question is but it could be people confusing no TDS with any tax at all. Banks dont deduct tax at source on RDs but the interest itself is taxable like other interest income. It will be added to the rest of your income and taxed at your slab. This is what I think will happen If you take a RD for the duration of over a year, say 2 years then you will have to see how much interest accrues to you in one financial year, and then declare that interest as part of your return and pay tax on it. So, even though you are still paying installments for the RD, and it hasnt matured yet, you will need to declare the income that has accrued to you, and pay tax on it. Interest rates on Recurring Deposits I was going through the interest rate page of ICICI Bank, and saw that they give interest rates of 8.25% on RDs of 12, 15, 18, and 21 months, but they give 9.25% on a 390 day fixed deposit. A few other bank websites said that they offered RDs at the same interest rate as the fixed deposit, but I think that means exclusion of special interest rates that banks give on deposits of 390, 555, 400 day maturities etc., and since these are the maturities that give you the higher interest rate, it looks like the interest on a RD will be lower than a fixed deposit.

Stopping Recurring Deposits Early Banks allow you to stop your recurring deposit earlier than the maturity period, but like fixed deposits, you get a lower interest rate than what you have settled for, and in some cases there is some penalty as well, which is also called a service charge in some banks.
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CHP 2.1 A (iii): FIXED DEPOSITS

A Fixed Deposit (also known as FD) is a financial instrument provided by Indian banks which provides investors with a higher rate of interest than a regular savings account, until the given maturity date . It may or may not require the creation of a separate account. Some banks may offer additional services to FD holders such as loans against FD certificates at competent interest rates. Fixed deposits are a high-interest-yielding Term deposit offered by banks in India. The most popular form of Term deposits are Fixed Deposits, while other forms of term Deposits are Recurring Deposit and Fixed Deposits (the latter is actually a combination of Demand deposit and Fixed deposit). Although banks can refuse to repay FDs before the expiry of the deposit, they generally don't. This is known as a premature withdrawal. In such cases, interest is paid at the rate applicable at the time of withdrawal. For example, a deposit is made for 5 years at 8 %, but is withdrawn after 2 years. If the rate applicable on the date of deposit for 2 years is 5 per cent, the interest will be paid at 5 per cent. Banks can charge a penalty for premature withdrawal. Banks issue a separate receipt for every FD because each deposit is treated as a distinct contract. This receipt is known as the Fixed Deposit Receipt (FDR), that has to be surrendered to the bank at the time of renewal or encashment. Income tax regulations require that FD maturity proceeds exceeding Rs 20,000 not to be paid in cash. Repayment of such and larger deposits has to be either by " A/c payee " crossed cheque in the name of the customer or by credit to the saving bank a/c or current a/c of the customer.

ICICI BANK FIXED DEPOSITS ACCOUNTS Fixed Deposits are options which help you grow your money thus creating wealth in a safer and secure way. Corporates can invest their suplus funds in fixed deposits for a wide range of tenures. The minimum deposit amount is Rs 10,000.

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Features of Fixed Deposits Accounts are Fund through a debit to the operative account/cheque for clearing While interest is compounded quarterly, payment of interest is quarterly, monthly or on maturity. Interest payouts can be through credit to your account or through bankers cheque. Benefits of Fixed Deposit.

Wide range of tenures-7days to 10years Choice of investments plan- Traditional and Cumulative Deposits Premature / Partial withdrawal permitted (subject to applicable charges) Loan facility available / you can avail loan up to 90% of the principal and accrued interest. Auto renewal facility-you can choose this option so that the deposit can be renewed on maturity. Interest compounded quarterly/ monthly payout available Additional interest rate of 0.5% for senior citizens

Auto-Renewal of ICICI Bank Fixed Deposits with Fixed Deposit Receipt -All existing FDS, against which an fixed Deposit Receipt has been issued, shall be instructed for auto-renewal on maturity for the same tenure at the rates of interest prevailing at time of maturity, unless instructions to the contrary are received by us by june 28, 2011. The new deposit amount shall consist of the maturity amount . so accumulated excluding the Tax Deducted at Source, if any. -You also have the choice to request for any other maturity instruction of closure/premature or partial withdrawal/change in tenure/change in scheme/ or request for new FD advice or receipt of the FD before June 28,2011or after renewals henceforth, by submitting the original Fixed Deposit Receipt, to the nearest ICICI Bank Branch. In case of loss of original FD receipt, you are requested to submit an indemnity, as per format prescribed by the bank. -Further more, tenure of the renewed FD may also be modified by the customer, upto 30days, post the maturity date of an FD, by submitting the original Fixed Deposit Receipt, to the nearest ICICI Bank Branch.

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CHP 2.1 A (iv): CURRENT ACCOUNT

Current bank account is opened by businessmen who have a number of regular transaction with the bank, both deposits and withdrawals. It is also Knows as Demand Deposits. Current account can be opened in co-operative bank and commercial bank. In withdraws at any time without giving any notice, It is also suitable for making payments to creditors by using cheques, cheques received from customer can be deposited in this account for collection. In India current account can be opened by depositing rs 500 to rs 1000. The customers are allowed to withdraw the amount with cheques and they generally do not get any interest. Current Account holder get one important advantage of overdraft facility. The current account product provides a host of services like Anywhere banking in India also anywhere in the world, which enables the customer to operate from any branch, provides for faster collection of upcountry cheques, Doorstep banking which provides for delivery and pick-up of cash and documents, Internet banking which enables online tracking of the account, execution of transactions and so on. Multiple variants of current accounts are offered by ICICI Bank to suit your specific requirements.

The Features of Current Bank Account The Following are the important features of current account are as follows: The main objective of current bank account is to enable the businessmen to conduct their business to conduct their business transactions smoothly. There is no restriction on the number and amount of deposits. There is also no restriction on the withdrawals. Generally bank does not pay any interest on Current account. nowadays, some banks do pay interest on current accounts. Current account is of continuing nature and as such there is no fixed period. Current account indicates deposits always payable on demand. Hence they are called demand deposits. There is no restriction on the number and amount of withdrawals from this account.
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Banks insist on the maintenance of certain minimum balance on current account. If the balance goes below this amount, the bank has a right to close that account Generally no interest is paid on money deposited in this type of account. Recently, banks have started giving lower interest on this account. Overdraft facilities are given in case of current accounts only. Current account suits the requirements of businessmen, joint stock companies, institutions, societies, public authorities and public corporations etc. whose banking transactions happen to be numerous on every working day. All banking services are made available to current account holders are reasonable service charges. Banks are given full freedom to decide the rules and regulations regarding the operation of current account.

Advantages of Current Bank Account The advantages of current account are as follows: Current account enables businessmen to conduct his business transactions smoothly. The businessmen can withdraw any amount at any time from their current accounts. There are also no restrictions on withdrawals. The businessmen can make direct payment to their creditors with the help of cheques. The bank collects money on behalf of its customers and creditors the same to their accounts. Current account enables the account holders obtain overdraft facility. The creditors of the account holder can get credit. Multi-location Funds transfer Mobile banking Electronic Funds Transfer Corporate Internet Banking Periodical e-mail statements in multiple formats, including MT940, Multicash, Excel, text, pdf, etc.

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Roaming Current Account

Roaming Current Account (RCA) offered by ICICI Bank travels the distance with your business and helps effect lucrative business relationships. RCA brings with it the concept of 'Anytime Anywhere' banking, enabling you to operate your RCA from any of our branches in over 700 cities across India. Recognising the fact that every business has particular requirements, a range of variants are available under the branch of RCA to suit varying needs. The choice of variants is based on committed Monthly Average Balance. It is also possible to change your current variant every month in response to changing needs. The following features are also available with all variants:

Multi-city cheques/Local cheques Unlimited withdrawal and deposit Demand drafts and pay orders Funds transfer Doorstep banking

Benefits

Choose an account type that suits your business from the available variants Cheque issued from your RCA may be encashed at any of the 700 centers across India Allows your customer to deposit cheques into your account from any ICICI Bank branch Speedy reflection of the deposited cheque in your account

Variants You may choose from the available six variants of the Roaming Current Account depending on your requirements: Standard Gold Classic Gold Plus Premium Platinum
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Gold Roaming Current Account

ICICI Bank's Gold Current account gives a wide range of facilities with an MAB (Monthly Average Balance) of Rs. 1,00,000/-. The following benefits comes with Gold Current Account:

Free Collections & Payments through NEFT and RTGS Free Local Cheque Collection at base location (Intra-city) Free Non-Cash services* Free Cash withdrawal at non base branch through Self cheques up to Rs. 50,000/- per day Free Cash deposits at base branch location up to Rs. 10 lacs per month Free Internet Banking and Phone Banking Free Cash deposits at non base branch location up to Rs. 1 lac per month Free Mobile Banking

Gold Plus Roaming Current Account

ICICI Bank's Gold Plus Current account gives a wide range of facilities with an MAB (Monthly Average Balance) of Rs. 3,00,000/-. The following benefits comes with Gold Plus Current Account:

Free Collections & Payments through NEFT and RTGS. Free Local Cheque Collection at base location (Intra-city). Free Non-Cash services. Free Cash withdrawal at non base branch through Self cheques up to Rs. 50,000/- per day . Free Cash deposits at base branch location up to Rs. 30 lacs per month . Free Internet Banking and Phone Banking . Free Cash deposits at non base branch location up to Rs. 3 lacs per month. Free Mobile Banking .

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Financial Services Offer By Commercial Bank

Made2Order Current Account

ICICI Bank's Made2order Account (M2O) is an account which is tailor-made keeping in mind transactions which are unique to your business. The M2O account gives you the flexibility to choose services relevant to your specific business needs. Depending on the services required, you may either maintain the required Monthly Average Balance (MAB) or pay fees as per the volume and the services utilised. Special features of the M2O Account include:

Flexibility in deciding the MAB. Flexibility in deciding the free higher limits in services which are required frequently. Customised DD/Pay Order limits. Flexible cash deposit limits at both the base and the non-base branches Customised charges and free limits for services which are required frequently. Flexibility in choosing free cheque leaves.

Prepaid Current Account

PCA (Prepaid Current Account) ICICI Bank presents a special current account for those who prefer to pay a fixed prepaid charge on an annual basis and who do not want to commit any balance at any point of time. In Prepaid Current Account, the customer does not have to maintain any minimum or average balance but just has to charge his account with Rs. 2999 every year. Charge once and enjoy free* banking for the whole year. It is simple and transparent and the advantages include: The ICICI Bank Edge.

Free personalized cheque book. Free business banking debit card. Free unlimited fund transfers. Free Internet/ Phone/ Mobile Banking. *50 free transactions every month and charges thereafter.
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Financial Services Offer By Commercial Bank

CHP 2.1 B :

Advancing Loans

The money that is received by banks by way of deposits is utilized for granting loans and advances to worthy borrowers. Apart from playing a vital role in the development of the economy, banking is a business with a motive to earn profit. The successful operation in this function forms the main source of income i.e. profit of the bank. Banks advances enable commerce and industry to meet their short term and long term requirements of funds. In recent years, the lending attitude of banks has undergone a marked change. Now, advances granted by banks are expected to develop all sectors of the economy. The strength of a bank is primarily judged by the soundness of its advances. The advances by banks may be made in any one or more of the following forms: a) Overdrafts. b) Cash Credit. c) Loans.

CHP 2.1 B (i): OVERDRAFTS

An overdraft occurs when withdrawals from a bank account exceed the available balance. In this situation a person is said to be "overdrawn". If there is a prior agreement with the account provider for an overdraft protection plan, and the amount overdrawn is within this authorised overdraft limit, then interest is normally charged at the agreed rate. If the balance exceeds the agreed terms, then fees may be charged and higher interest rate might apply. The following are the distinctive features of overdrafts: i) This facility is given only to current accountholders. ii) Here a current accountholder is permitted by the banker to draw more than what stands to his credit. iii) The banker may take some collateral security or may grant such advance on the personal security iv) The customer is permitted to withdraw the amount as and when he needs and to make deposit in his account as and when it is convenient. v) Interest is charged on the amount overdrawn and for a short period it is utilized.
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Financial Services Offer By Commercial Bank

CHP 2.1 B (ii): CASH CREDIT

This account is the primary method in which Banks lend money against the security of commodities and debt. It runs like a current account except that the money that can be withdrawn from this account is not restricted to the amount deposited in the account. Instead, the account holder is permitted to withdraw a certain sum called "limit" or "credit facility" in excess of the amount deposited in the account. Cash Credits are, in theory, payable on demand. These are, therefore, counter part of demand deposits of the Bank.

The following are the notable features of the cash credit arrangements: i) Under this scheme, the banker specifies a limit for each customer upto which the customer is permitted to borrow against some security or guarantee. ii) The customer is allowed to withdraw from this account as and when he needs money and deposits in this account any surplus that he has iii) Generally the customer is required to provide tangible asset as security to cover the amount borrowed. iv) For availing of the cash credit facility it is not necessary to have an account in a bank. v) The advances sanctioned under this arrangements are technically repayable on demand, but in practice they roll over a period of time. It is a seasonal borrowing renewed from time to time. vi) This method of borrowing is very popular in India, accounting for about 70 per cent of the total bank credit. Cash credit facility is regularly granted to commercial and industrial concern for longer periods.

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Financial Services Offer By Commercial Bank

CHP 2.1 B (iii):

LOANS

A loan is a type of debt. Like all debt instruments, a loan entails the redistribution of financial assets over time, between the lender and the borrower. In a loan, the borrower initially receives or borrows an amount of money, called the principal, from the lender, and is obligated to pay back or repay an equal amount of money to the lender at a later time. Typically, the money is paid back in regular installments, or partial repayments; in an annuity, each installment is the same amount. The following are the distinctive features of loan facility granted by a bank: i) A fixed amount sanctioned for a definite period of time is called loan. ii) Loans are repayable at one time or in installments as agreed. iii) Interest is charged on the total amount of the loan sanctioned whether it is utilized or not. iv) Loans are given on the security of shares, Government securities, life insurance policies, gold and other assets. In suitable cases, unsecured advances are also granted by banks. v) There are different types of loans. For instance, term loans, participation loans and personal loans. vi) Banks charge a slightly lower rate of interest on loan account than on overdraft and cash credit, other things being equal.

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Financial Services Offer By Commercial Bank

Chp 2.2: SECONDARY FUNCTIONS

These secondary functions can be classified into two main divisions: 1) Agency Services. 2) General Utility Service

Chp 2.2 A: AGENCY SERVICES

The agency services are provided to regular customers of the bank. While providing agency services, banker acts as the agent of the customer. Some of the important services rendered to the clients are given below: a) Payment of insurance premium, subscriptions and contributions etc of societies, clubs, associations etc which are of recurring nature. b) Collection of salary and pension bills, dividend coupons and interest payable on debentures and other securities c) Transfer of funds of customers from one bank to another by means of bank drafts, mail or telegraphic transfer. d) Purchase and sale of stock, shares, debentures and other securities as per instructions from the customers. e) Collection and payment of cheques, bills and promissory notes. f) Acting as attorney or representative of client. g) Acting as a trustee, executor or administrator. h) Acting as correspondents, agents or representative of their customers to other banks or financial corporations. i) Filing of income tax return j) Collection of postal orders
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Financial Services Offer By Commercial Bank

Chp 2.3 B: GENERAL UTILITY SERVICES CHARTS: GENERAL UTILITY SERVICES

Some important utility services provided by commercial banks are:

Safe Deposit Vault

Collection of Cheques, Bills and promissory Notes

Issuing Letter of Credit

Bank Drafts

ATM

Debit Card

Credit Card

Tele- Banking

Internet Banking

Mobile Banking

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Financial Services Offer By Commercial Bank

Chp 2.3 B (i): Safe Deposit Vault

A bank undertakes the safe custody of the customers valuables and documents by providing a safe deposit vault. These are kept in specially constructed strong rooms. There are lockers available to the customer on a nominal charge. There are two keys for each locker, one is given to the customer and the other remains with the Bank Manager. The locker is opened as well as closed by both the keys one after another. Customers can keep custody. A register is maintained by the bank in which all the particulars about the valuables and documents are recorded in it. Banks provide the services of safe deposit vault on hire basis to the customers.

Chp 2.3 B (ii): Collection of Cheques, Bills and promissory Notes

The customers deposit cheques, bills of exchange and promissory note into their accounts with the banks. These instruments are collected by the bank on behalf of their customers and credited to their accounts. These services are provided by the cheques, bills and promissory notes issued on branches out of the city are collected with some nominal charges for postage etc. this is a very popular and essential service provided by the banks to their customers.

Chp 2.3 B (iii): Issuing Letter of Credit

A letter of credit is a commercial instrument of assured payment. It is widely used by the businessman for various purposes. The bank undertakes to make payment to a seller on production of documents stipulated in the letter of credit. It specifies as to when payment is to be made which may be either on presentation of documents by the paying bank or at some future date depending upon the terms stipulated in the letter. There are many parties involved in the letter of credit. One is the applicant who is the buyer of goods or importer of goods. He makes an application to a bank who issues the letter of credit. The bank is known as issuing bank. The beneficiary is named in the letter of credit who is the seller of goods or exporter. Other banks are also involved in the transaction such as negotiating bank, confirming bank and advising bank.
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Financial Services Offer By Commercial Bank

Chp 2.3 B (iv): BANK DRAFTS

A bank draft is an order from one branch to another branch of the same bank to pay a specified sum of money to a person named therein or to his order. A draft is always payable on demand. Banks issue drafts at the request of the customers on their branches at the place of destination for remitting money from one place to another place. Any person who wants to remit money has to purchase a draft from the bank by paying the amount in advance to the bank. The purchaser of the draft then sends the draft to the payees place of residence by post or courier for the purpose of encashment at the drawee branch of the bank. The bank issuing the draft charges some commission depends upon the amount of the draft. The purchaser need not be a customer of the bank. The bank draft is like a bill of exchange payable on demand. In case the draft is lost by a purchaser, he has to report to the issuing banker for loss of the draft without any endorsement, the banker may safely refuse to pay the amount of the draft. The bank should take all the precautions and payment of the draft should be made only when the banker is fully satisfied about the valid title of the holder. The banker should take an indemnity bond and then issue a duplicate draft to the purchaser. The draft may be cancelled by the bank if it is not delivered to the payee. When a bank draft is delivered to the payee he acquires a right in the instrument, which cannot be set aside by the stop -payment order issued by the purchaser. The bank issuing the draft sends an advice to the drawee branch, intimating about the issue of the draft. The drawee branch after verifying the signature of the authorized officials makes the payment. However, the payment of the draft should not be refused because of non-receipt of drawing advice.

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Financial Services Offer By Commercial Bank

Chp 2.3 B (v): Automated Teller Machine (ATM)

ATM is a channel of banking service to its customers. Its traditional and primary use is to dispense cash upon insertion of a plastic card and its unique PIN i.e. Personal Identification Number. The banks issue ATM card to their customers having current or savings account holding a certain minimum balance in their accounts. ATM card is a plastic card with a magnetic strip with the account number of the individuals. When the card is inserted into the machine the sensing equipment of the machine identifies the account holder and asks his PIN. It is a secret number which is known only to the account holder. If the PIN is matched, the ATM pops up a menu screen which allows the user to transact almost all types of banking transactions, such as withdrawal of cash, deposit of cash/cheques.

Following are the advantages of ATM: 1. ATM provides 24hour service; the customer can withdraw cash up to a certain limit during 24hours. It is now called all time money facility. 2. It provides a great deal of convenience to customers. Most of the ATMs are located at the convenient place and as such this facility is a boon to customers. ATM machines are installed at suitable locations such as Airport, Railway station, Residential colony, near big malls etc. 3. ATM facility also reduces pressure on bank staff. The bank staff is free from the botheration of keeping large ready cash for withdrawal by people. 4. Here the work of deposition and withdrawal is handled by the machine. The machines are perfect and provide accurate service. The human errors are absent when operations are performed by machines. 5. Operations through machines provide a kind of privacy and secrecy to banking business.
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Financial Services Offer By Commercial Bank

Chp 2.3 B (vi): DEBIT CARD

A debit card is a plastic card that provides an alternative payment method to cash when making purchases. Functionally, it can be called an electronic check, as the funds are withdrawn directly from either the bank account or from the remaining balance on the card. In some cases, the cards are designed exclusively for use on the Internet, and so there is no physical card. In many countries the use of debit cards has become so widespread that their volume of use has overtaken or entirely replaced the check and, in some instances, cash transactions. Like credit cards, debit cards are used widely for telephone and Internet purchases and, unlike credit cards, the funds are transferred immediately from the bearer's bank account instead of having the bearer pay back the money at a later date. Debit cards may also allow for instant withdrawal of cash, acting as the ATM card for withdrawing cash and as a check guarantee card. Merchants may also offer cashback facilities to customers, where a customer can withdraw cash along with their purchase.

Advantages & Disadvantages of Debit Card:

Advantages of Debit Card: 1. No need to carry cash. Just about every merchant accepts the debit card including the dollar store and some thrift shops. You do not need to worry about losing cash or misplacing it in a pair of jeans only to find it two months later. If your purse or wallet is stolen your money is safe since the perpetrator would need your PIN number to access your funds. 2. You don't need to make a trip to the bank every time you need to withdrawal money. You can use your card just about any where you go, and if you need the cash you can access your money at an ATM machine any time of day or night.

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Financial Services Offer By Commercial Bank

Disadvantages of Debit Card: 1. With a debit card you must keep accurate records. You must record each transaction so you will know what your account balance is at all times. If you do not keep records you run the risk of overdrawing your account which will result in bank fees. Not to mention the embarrassment you will suffer at the checkout line when your card is denied. 2. If your child needs lunch money you can't just hand them the debit card. You have to drive to the nearest ATM machine to access a few rupees to send to school with your child

Chp 2.3 B (vii): CREDIT CARD

A credit card is an instrument of payment. It is a source of revolving credit. The cards are plastic cards issued by the banks to their customers. The name of the customer, card number and expiry date are printed on the plastic cards. Some banks also use the photograph of the customers on the credit card. The cardholder can buy goods or services from various merchant establishments where such arrangements exist. The card issuing bank makes the payment to the supplier or seller. The outstanding amount on account of use of the credit card is payable by the card holder to the bank over a specific period which carries a fixed amount of interest. A debit card is a payment card used to obtain cash, goods and services automatically debiting the payments to the cardholders bank account instantly, in which credit balance exists. A credit card is more then a simple piece of plastic, it is first and foremost a flexible payment tool accepted at 30 million locations worldwide, and if the card balance is paid off every month, then no interest is charged on purchases made so, essentially, short-term credit is granted without the consumer paying any interest.

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Financial Services Offer By Commercial Bank

Some of the features of Credit Card are: 1. Access to unsecured credit (no collateral required against amounts charged). 2. Interest-free payment from time of purchase to the end of the billing period 3. Instant payment of purchases, allowing for instant receipt of goods and services 4. 24/7 access 5. Fraud protection

Advantages & Disadvantages of Credit Card:

Advantages of Credit Card: 1. Offer free use of funds, provided you always pay your balance in full, on time. 2. Be more convenient to carry than cash. 3. Help you establish a good credit history. 4. Provide a convenient payment method for purchases made on the Internet and over the telephone. 5. Give you incentives, such as reward points, that you can redeem. Disadvantages of Credit Card: 1. Cost much more than other forms of credit, such as a line of credit or a personal loan, if you don't pay on time. 2. Damage your credit rating if your payments are late; 3. Allow you to build up more debt than you can handle; 4. Have complicated terms and conditions.

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Financial Services Offer By Commercial Bank

Chp 2.3 B (viii): TELE BANKING

Telephone banking is a service provided by a Commercial Banks, which allows its customers to perform transactions over the telephone. Most telephone banking services use an automated phone answering system with phone keypad response or voice recognition capability. To guarantee security, the customer must first authenticate through a numeric or verbal password or through security questions asked by a live representative. With the obvious exception of cash withdrawals and deposits, it offers virtually all the features of an automated teller machine: account balance information and list of latest transactions, electronic bill payments, funds transfers between a customer's accounts, etc. Usually, customers can also speak to a live representative located in a call centre or a branch, although this feature is not always guaranteed to be offered 24/7. In addition to the self-service transactions listed earlier, telephone banking representatives are usually trained to do what was traditionally available only at the branch: loan applications, investment purchases and redemptions, chequebook orders, debit card replacements, change of address, etc. Banks which operate mostly or exclusively by telephone are known as phone banks. They also help modernize the user by using special technology.

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Financial Services Offer By Commercial Bank

Advantages & Disadvantages of Tele Banking: Advantages of Tele Banking:

1. You may not have time to visit your bank every week and if your business is located out of town, getting to a branch can be time consuming and expensive. With telephone banking, your bank is on the other end of the line whenever you need it. 2. You can manage your business account at any time, which is ideal if you are busy during the day with running your business. 3.As well as the basics of running your business account paying a bill, transferring money, setting up a direct debit and so on you may also be able to apply for finance and make an appointment with your Bank Manager. 4. Making payments by phone can simplify your banking you dont need to confirm the payments in writing, and you can check all your transactions against your statement when it arrives.

Disadvantages of Tele Banking:

1. The most common one would have to be the fact that not all banks and building societies offer 24 hour telephone banking. 2. Telephone banking like online banking can seem impersonal, but like online banking, if you use it on conjunction with your regular bank account it can be a useful tool.

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Financial Services Offer By Commercial Bank

Chp 2.3 B (ix): INTERNET BANKING

Internet is a channel of service to banking customers. The access to account information as well as transaction is offered through the world-wide-web network of computers on the internet. Each account holder is provided with a PIN similar to that of ATM or phone banking. The access to the account is allowed to the customer upon a match of the account details and PIN entered on the computer system. A higher level of security may be reached by an electronic fingerprint. Transaction such as e-business, Railway-Air Reservation, payment of bills, transfer of money can be carried out while sitting in the house with the help of an internet.

INTERNET BANKING SERVICES 1) Bill Payment Service: You can facilitate payment of electricity and telephone bills, mobile phone, credit card and insurance premium bills as each bank has tie-ups with various utility companies, service providers and insurance companies, across the country. To pay your bills, all you need to do is complete a simple one-time registration for each biller. You can also set up standing instructions online to pay your recurring bills, automatically. Generally, the bank does not charge customer for online bill payment. 2) Fund Transfer: You can transfer any amount from one account to another of the same or any another bank. Customers can send money anywhere in India. Once you login to your account, you need to mention the payees account number, his bank and the branch. The transfer will take place in a day or so, whereas in a traditional method, it takes about three working days. 3) Credit Card Customers: With Internet banking, customers can not only

pay their credit card bills online but also get a loan on their cards. If you lose your credit card, you can report lost card online.

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Financial Services Offer By Commercial Bank

4) Investment: You can now open an FD online through funds transfer. Now investors with interlinked demat account and bank account can easily trade in the stock market and the amount will be automatically debited from their respective bank accounts and the shares will be credited in their demat account. Moreover, some banks even give you the facility to purchase mutual funds directly from the online banking system. 5) Recharging your Prepaid Phone: Now just top-up your prepaid mobile cards by logging in to Internet banking. By just selecting your operator's name, entering your mobile number and the amount for recharge, your phone is in action within no time. 6) Shopping: With a range of all kind of products, you can shop online and the payment is also made conveniently through your account. You can also buy railway and air tickets through Internet banking.

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Financial Services Offer By Commercial Bank

Chp 2.3 B (x): MOBILE BANKING

Mobile banking also known as M-Banking, SMS Banking is a term used for performing balance checks, account transactions, payment etc. Over the last few years, the mobile and wireless market has been one of the fastest growing markets in the world and it is still growing at a rapid pace. With mobile technology, banks can offer services to their customers such as doing funds transfer while travelling, receiving online updates of stock price or even performing stock trading while being stuck in traffic. A specific sequence of SMS messages will enable the system to verify if the client has sufficient funds in his or her wallet and authorize a deposit or withdrawal transaction at the agent. Many believe that mobile users have just started to fully utilize the data capabilities in their mobile phones. In Asian countries like India, China, where mobile infrastructure is comparatively better than the fixed-line infrastructure, and in European countries, where mobile phone penetration is very high, mobile banking is likely to appeal even more. Mobile Banking Services Account Information 1) Mini-statement and checking of account history 2) Alerts on account activity 3) Monitoring of term deposits 4) Access to loan statements 5) Access to card statements 6) Mutual fund/ equity statements
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Financial Services Offer By Commercial Bank

7) Pension plan management 8) Insurance policy management 9) Status on cheque, stop payment on cheque 10) Ordering cheque books 11) Balance checking in the account 12) Recent transactions 13) Due date of payment 14) PIN provision 15) Blocking of cards Payments, Deposits, Withdrawals and Transfers 1) Domestics and international fund transfers 2) Micro-payment handling 3) Mobile recharging 4) Commercial payment processing 5) Bill payment processing 6) Peer to Peer payments 7) Withdrawal at banking agent 8) Deposit at banking agent

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Financial Services Offer By Commercial Bank

Chp 3: Awards and Recognitions

ICICI Bank was voted as the Most Trusted Brand among private sector banks in the 2010 Economic Times Brand Equity Most Trusted Brands Awards and ranked 7th in the list of the Top 50 service brands. ICICI Bank received the 2010 World Finance UK award for: i. ii. iii. Excellence in Remittance Business, Worldwide Excellence in NRI Services, Worldwide Excellence in Private Banking Business, APAC Region

For a sixth time in a row, ICICI Bank has received the Most Preferred Auto Loan Brand in the Financial Services category at the CNBC Consumer Awards. ICICI Bank has won Gold in the Readers Digest Trusted Brands 2010 Consumer award in the Finance category for. i. ii. Best Bank Best Credit Card Issuing Bank

ICICI Bank amongst the top 3 to receive the FE-EVI Green Business Leaders Award, in the banking industry. ICICI Bank wins the Asian Banker Award for Best Banking Security System. Forbes 2000 most powerful listed companies survey ranked ICICI Bank 4th among the Indian companies and 282nd globally. ICICI Bank wins the Asian Banker Award for Excellence in SME Banking 2009. Mr. N. Vaghul, Former Chairman, ICICI Bank was awarded the Padma Bhushan.

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Chp 4 : Questionnaire
Customer attitude towards Financial service provided by Icici bank 1. Which type of bank account do you have? a) Savings A/C b) Fixed deposit A/C c) Current A/C d) Savings & current A/C 2. Since how many years you are operating bank account? a) Below 1 years b) above 3 years c) between 3 to 5 years d) above 5 years 3. Have you ever heard about value added service in your bank? Yes No 4. Which of the following value added service do you use? ATM, Electronic fund transfer, Any branch banking Internet banking, Credit cards , Demat 5. Do you know about internet banking? Yes No 6. Reasons for not using internet banking service? Lack of knowledge complex procedure Lack of time 7 Customer attitude towards Financial service provided by Icici bank A r e yo u s a t i s f i e d wi t h t h e s e r v i c e p r o v i d e d b y b a n k , i f n o t reason? Yes No If not, specify reason .. 8. What is your opinion about services provided by ICICI BANK? . .. 9. Do you get any complaint regarding icici product. If yes mention the complaint? Yes No If yes mention . 10. According to you which concept of this bank is good? Brand Cost effective Service without mistake quick service

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Chp 5 : DATA ANALYSIS AND INTERPRETATION Q1) Customer attitude towards Financial service provided by Icici bank
Survey analysis (questionnaire)
A survey was conducted of about 10 people who have Bank Account in ICICI Bank. These included Several Housewives, Businessmen, Professionals, Students etc. The following analysis was done on the basis of the survey conducted.

Awareness about financial services

Fully aware Had an idea 1st Qtr 37% 2nd Qtr 46% 3rd Qtr 17% No idea Total

4th Qtr 100%

Interpretation

From the above chart we came to know that, overall percentage of service class people having complete knowledge about different types of services provided by the bank is 37%, those having some idea about it is 46% and the percentage of people having no awareness of various services provided by the bank is 17%. It can reasonably, be concluded that nearly 85% of the population is having awareness about newly introduced services.

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Q2 Awareness of various banking services provided by banks.

Awareness about different Banking Services

30.00% 25.00% 20.00% 15.00% Percentage 10.00% 5.00% 0.00% ATM Debit Card Credit Card Phone Mobile Internet Banking Banking Banking

Interpretation Banks constitute various channels through which services are provided in terms of ATMs, Debit Card, Credit Card, Phone Banking, Mobile Banking, Internet Banking etc, of which the first six have been covered. Amongst these ATM scores the largest used service status (26.03%) as indicated by above figures. Close on the heels is Debit card (17.75%), Credit card (14.79%), while phone banking lags behind by scoring the least (11.83 %.)

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Q 3) Sources from which the respondents get the knowledge about the innovative financial services.

Sources of Awareness about various innovative financial products

4% 26% 21% 15% Personal Visit Executive from Bank Advertisements Friends/Relatives 34% Others

Interpretation The above table indicates the percentage distribution of awareness avenues, the major are in favour of advertisements, which score 34% among different avenues such as personal visit, executives of the banks, advertisements and friend/relatives. While the least score is for personal visit and that of other sources.

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Q4) Is your Bank following the Know Your Customer (KYC) norms in providing services.

Formulation of KYC norms

5% 10%

Yes

No

Interpretation The above table indicates the KYC norms followed by the banks. The banks are providing the customer with proper information about various banking services. The banks are trying to find the expected service of the customer.

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Q5) Growth rate of credit cards

Number of credit cards

0.8

0.5
0.3

0.6

0.3

0.0 2007 (0.2) 2008 2009

Interpretation

The above table indicates the growth rate of credit cards, which scores 0.3 million in the year 2008 and it has grown upto 0.6 million in 2009.The growth rate is 100%. This indicates that the distribution of credit cards is on large scale. The ICICI Bank is considered as largest issuer of credit cards.

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Q6) Are you satisfied with the services provided by ICICI Bank with respect to Financial Service Offer by Commercial Bank ?

20%

80%

Interpretation: Out of the total number of people surveyed. 80% of them were satisfies with the services provided by ICICI Bank with respect to Financial Services offer by Commercial Bank. 20% said that the services were not upto their expectations.

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Chp 6: CONCLUSION

The project of Financial Services offer by commercial bank was undertaken at ICICI Bank Ltd. Working under this project I learned various services in detail which banks generally follow. It also helped in gaining knowledge about different concepts provided under different services . The Financial Services of the Banks has become very vital in the smooth operation of the banking activities. The Project work has certainly enriched the knowledge about the effective management of the various services in Banking Sector. Lastly as according to data collection we conclude that given findings and suggestions need to be considered which can prove to be effective to the Banks.

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Chp 7: SUGGESTIONS

Prevention against frauds of Credit Cards To take necessary action against defaulters Providing with proper information relating to various services Guidance for investment in various securities in order to protect the interest
of investors.

Approaching the customers for investment in innovative financial services. Special schemes to be provided on some types of services

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Financial Services Offer By Commercial Bank

Chp 8: BIBLIOGRAPHY

BOOKS: Financial Services & Systems - K.K. Sasidharan - Alex Mathews Financial Markets & Services - Gordon - Natarajan

Web Sites: www.wikipedia.com www.icici bank.com www.google.com www.ask.com www.scbrid.com

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