Module: 2 - About ICICI Bank Limited (Page: 1 of 1)

As part of the process of creating competitiveness in the banking industry a number of new private-sector banks (popularly called the 'New Private Sector Banks') were licensed from 1994 to commence banking operations and foreign banks operating in India were permitted to expand their branch network. The new private sector banks opened in this context commenced their operations organised on global standards investing high technology replacing manual labour in all their operations. As per the new licensing policy UTI Bank was the first new private bank to come into operation in 1994. Subsequently in the same year ICICI Bank Ltd. was established. The Bank was registered as banking company on January 5, 1994 and received its banking license from the Reserve Bank of India on May 17, 1994. The Bank was promoted by ICICI Ltd. (Industrial Credit Investment Corporation of India), an all India Financial Institution as its subsidiary. ICICI Bank Ltd. registered phenomenal growth from its inception in all spheres.

The Bank raised its IPO (initial public offer) in 1998, resulting in the reduction of the stake of ICICI Ltd. in its subsidiary to 46%. In the year 2000 the bank made equity offering in the form of ADRs listed on the NYSE. ICICI Bank's acquisition of Bank of Madura Limited in an all-stock amalgamation in fiscal 2001 further improved its coverage of branches in the South, while secondary market sales by ICICI to institutional investors in fiscal 2001 and fiscal 2002 augmented its capital. As at 31.03.2003 its Capital stands at Rs.962.66 crore and Reserves at Rs.6320.65 crore.

Amongst the Indian Banks today ICICI employs the minimum workforce. Its per employee business turn over is the highest at Rs.8.87 Crores (per employee aggregate assets consisting of advances + investments), while for SBI the largest amongst banks in India, it is about Rs.2.17 Crores.

ICICI Bank Ltd. initiated its operations in 1994 fully computerised and was able to diversify its banking products widely to meet the different needs of each customer, as also different needs of different customers. It has computerised all customer operations and introduced Internet Banking both in respect of personal banking products and corporate banking products at par with such foreign banks like HSBC, Citibank or Standard Chartered within the shortest span of time. It ranks No.1 or No.2 in almost all parameters like extension of retail credit, Internet banking, product diversification etc. It extensively meets the criteria to be eligible to be called a Universal Bank.

ICICI was formed in 1955 as a developmental all India financial Institution at the initiative of the World Bank, the Government of India and representatives of Indian industry for providing medium-term 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 viz. ICICI Bank, ICICI Securities, ICICI Prudential Life Insurance Company, ICICI Lombard General Insurance Company and ICICI Venture. 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.

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 Ahmedabad 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. This resulted in an optimal strategic alternative for all entities, and created an excellent legal structure for the ICICI group's universal banking strategy.

ICICI Bank grew leaps and bounds ever since the IPO in 1998 as well as the NYSE listing in 2000. The number of customers grew in large numbers, while the merger with Bank of Madura added further strength. The rapid growth and development witnessed by the Bank within a decade has made ICICI Bank now ranked as the second-largest bank in the country in addition to being the largest amongst the private sector banks. As at the end of last financial year March, 2003 its total assets were of about Rs.106,812 crore with a network of about 450 branches/ offices and about 1700 ATMs.

Today ICICI Bank is ranked next to State Bank of India. While SBI has 9028 branches ICICI bank's network is only 450 branches. While SBI has over two lakh employees, ICICI Bank has on its rolls less than 10000 persons. Over a total asset base of Rs.310,000 Crore (consisting of Deposits Rs.296,123 crores + Advances Rs.137,758 crore) SBI as at 31.03.2003 has posted a net profit of Rs.3105 Crore. ICICI corresponding figures are asset base Rs.1,01,448 crore (Deposits Rs.48,169.30 crore + Advances Rs.53,279.41 crore) and net profit Rs.1206 Crores. Within the first decade of its operation ICICI Bank has overtaken all the nationalised banks in business turnover and working results.

ICICI Bank at present offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialised subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital, asset management and information technology. ICICI Bank's equity shares are listed in India on stock exchanges at Chennai, Delhi, Kolkata and Vadodara, the Stock Exchange, Mumbai (BSE) and the National Stock Exchange of India Limited (NSE) and its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE).