A Project Report on Comprehensive Business Analysis of

ICICI Bank

(Institute of Innovation in Technology& Management)

Submitted in partial fulfillment of the requirements.

for the award of the degree of

Bachelor of Business Administration (BBA)

TO

Guru Gobind Singh Indraprastha University, Delhi

Guide: Submitted by:

Ms. Nonita Vedant Mazumdar
(Assistant Professor) Enroll No. 71524401723

Institute of Innovation in Technology& Management,

New Delhi– 110058

Batch (2023-2026)

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 CERTIFICATE

I, Mr./Ms._______________________________, Roll No. ________________ certify that the

Project Report (BBA-114) entitled “________________________________” is done by me

and it is an authentic work carried out by me at ___________________________ (Name of

the organization or of the Institute). The matter embodied in this project work has not been

submitted earlier for the award of any degree or diploma to the best of my knowledge and

belief.

Signature of the Student

Date:

Certified that the Project Report (BBA-311) entitled “__________________”

done by Mr./Ms._______________________________, Roll No. ________________, is

Signature of the Guide

Name of the Guide: Ms. Nonita
Designation: Assistant professor
Date:

Countersigned
(Director/Project Coordinator)

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 CONTENTS

S No Topic Page No

1 Certificate (s)

2 Chapter-1: Company Profile 1

3 Chapter-2: Business Environment Analysis 20

4 Chapter-3: Functional Analysis 33

5 Chapter-4: CSR initiatives and Unique 82

Practices

7 Chapter-5: Conclusion & Suggestions 91

8 References 92

9 Appendices 92

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 CHAPTER 1

INRODUCTION

ICICI Bank is India’s second-largest bank with total assets of 3,997.95 billion (US$ 100

billion) at March 31, 2008 and profit after tax of Rs. 41.58 billion for the year ended March 31,

2008. ICICI Bank is the most valuable bank in India in terms of market capitalization and is

ranked second amongst all the companies listed on the Indian stock exchanges. In terms of

free float market capitalization*. The Bank has a network of about 1308 branches and 3,950

ATMs in India and presence in 18 countries. ICICI Bank offers a wide range of banking

products and financial services to corporate and retail customer through a variety of delivery

channels and through its specialized subsidiaries and affiliates in the areas of investment

banking, life and non-life insurance, venture capital and asset management. The Bank currently

has subsidiaries in the United Kingdom, Russia and Canada, branches in Singapore, Bahrain,

Hong Kong, Sri Lanka and Dubai International Finance Center and representative offices in

the United States, United Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia

and Indonesia. UK subsidiary has established a branch in Belgium.

ICICI Bank's equity shares are listed in India on Bombay Stock Exchange (BSE) and the

National Stock Exchange (NSE) of India Limited and its American Depositary Receipts

(ADRs) are listed on the New York Stock Exchange (NYSE).

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HISTORY

ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution,

and was its wholly owned subsidiary. ICICI's shareholding in ICICI Bank was reduced to 46%

through a public offering of shares in India in fiscal 1998, an equity offering in the form of

ADRs listed on the NYSE in fiscal 2000, ICICI Bank's acquisition of Bank of Madura Limited

in an all-stock amalgamation in fiscal 2001, and secondary market sales by ICICI to

institutional investors in fiscal 2001 and fiscal 2002. ICICI was formed in 1955 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 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 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, and the move towards universal banking,

the managements of ICICI and ICICI Bank formed the view that the merger of ICICI with

ICICI Bank would be the optimal strategic alternative for both entities, and would create the

optimal legal structure for the ICICI group's universal banking strategy. The merger would

enhance value for ICICI shareholders through the merged entity's access to low-cost deposits,

greater opportunities for earning fee-based income and the ability to participate in the payments

system and provide transaction-banking services. The merger would enhance value for ICICI

Bank shareholders through a large capital base and scale of operations, seamless access to

ICICI's strong corporate relationships built up over five decades, entry into new business

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segments, higher market share in various business segments, particularly fee-based services,

and access to the vast talent pool of ICICI and its subsidiaries. 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 Citst of Gujarat at Ahmedabad in March 2002, and

by the High Citst 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. ICICI Bank has formulated a Code of

Business Conduct and Ethics for its directors and employees.

VISION AND MISSION

Vision

❖ To be the leading provider of financial services in India and a major global bank.

Mission

We will leverage our people, technology, speed and financial capital to:

❖ Be the banker of first choice for our customers by delivering high quality, world-class

products and services.

❖ Expand the frontiers of our business globally.

❖ Play a proactive role in the full realisation of India’s potential.

❖ Maintain a healthy financial profile and diversify our earnings across businesses and

geographies.

❖ Maintain high standards of governance and ethics.

❖ Contribute positively to the various countries and markets in which we operate.

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 ❖ Create value for our stakeholders.

ORGANISATIONAL STRUCTURE OF ICICI BANK

ICICI Bank’s organisation structure is designed to be flexible and customer-focused, while

seeking to ensure effective control and supervision and consistency in standards across the

organisation and align all areas of operations to overall organisational objectives. The

organisation structure is divided into six principal groups – Retail Banking, Wholesale

Banking, International Banking, Rural (Micro-Banking) and Agriculture Banking, Government

Banking and Corporate Centre.

❖ RETAIL BANKING

The Retail Banking Group is responsible for products and services for retail customers and

small enterprises including various credit products, liability products, distribution of third-party

investment and insurance products and transaction banking services.

❖ WHOLESALE BANKING

The Wholesale Banking Group is responsible for products and services for large and medium-

sized corporate clients, including credit and treasury products, investment banking, project

finance, structured finance and transaction banking services.

❖ INTERNATIONAL BANKING

The International Banking Group is responsible for its international operations, including

operations in various overseas markets as well as its products and services for non-resident

Indians and its international trade finance and correspondent banking relationships.

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❖ RURAL AND AGRICULTURAL BANKING

The Rural, Micro-Banking & Agri-Business Group is responsible for envisioning and

implementing rural banking strategy, including agricultural banking and micro-finance.

❖ GOVERNMENT BANKING

The Government Banking Group is responsible for government banking initiatives.

❖ CORPORATE CENTER

The Corporate Centre comprises the internal control environment functions (including

operations, risk management, compliance, audit and legal); finance (including financial

reporting, planning and strategy, asset liability management, investor relations and corporate

communications); human resitsces management; and facilities management & administration.

❖ BUSINESS REVIEW

During fiscal 2008, the Bank continued to grow and diversify its asset base and revenue streams

by leveraging the growth platforms created over the past few years. We maintained our

leadership position in retail credit, achieved robust growth in our fee income from both

corporate and retail businesses, strengthened our deposit franchise and significantly scaled up

our corporate and international banking operations.

❖ RETAIL BANKING

We are the largest provider of retail credit in India. Our total retail portfolio was Rs. 1,316.63

billion at March 31,2008, constituting 58% of our total loans at that date.

During fiscal 2008, we continued our focus on strengthening our retail deposit franchise to

create a stable funding base. Our current and savings account (CASA) deposits as a percentage

of total deposits increased from 22% at March 31, 2007 to 26% at March 31, 2008, with savings

account deposits increasing by 36% during fiscal 2008.

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During the year, we have expanded our branch network substantially. At March 31, 2008, we

had 1,262 branches & extension counters compared to 755 branches & extension counters at

March 31, 2007, including the addition of about 200 branches through the merger of Sangli

Bank. Our branch network has further increased to 1,367 as of May 31, 2008. We continued to

expand our electronic channels, namely internet banking, mobile banking, call centres, point

of sale terminals and ATMs, and migrate customer transaction volumes to these channels. We

increased our ATM network to 3,881 ATMs at March 31, 2008 from 3,271 ATMs at March 31,

2007.

❖ SMALL AND MEDIUM ENTERPRISES

During fiscal 2008, our small enterprises customer base increased by 26% to about 1.1 million

accounts. We have introduced our service offerings in over 400 new branches, increasing our

coverage to over 1,000 branches. During the year, we have focused on product specialisation

including investment banking for SMEs. We have continued to focus on shaping the small and

medium enterprises sphere in India through initiatives such as the “Emerging India Awards”,

the SME CEO Knowledge Series - a platform to mentor and assist SME entrepreneurs, and the

“SME Dialogue” - a weekly feature in a leading financial newspaper sharing SME best

practices and success stories. During the year, we have launched several new products and

services like the SME toolkit – an online business and advisory resource for SMEs.

❖ CORPORATE BANKING

It’s corporate banking strategy is based on providing comprehensive and customized financial

solutions to its corporate customers. It offers a complete range of corporate banking products

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including rupee and foreign currency debt, working capital credit, structured financing,

syndication and transaction banking products and services.

Fiscal 2008 saw continued demand for credit from the corporate sector, with growth and

additional investment demand across all sectors. We were able to leverage our international

presence and deep corporate relationships to work on overseas acquisitions made by Indian

companies and infrastructure projects in India. During fiscal 2008 we were involved in 75% of

outbound mergers and acquisitions deals from India. We are now a preferred partner for Indian

companies for syndication of external commercial borrowings and other fund raising in

international markets and have been ranked number one in offshore loan syndications of Indian

corporates in calendar year 2007.

❖ RURAL BANKING

Its rural strategy is based on enhancing value at every level of the supply chain in all important

farm and non-farm sectors. Towards this end, it offers a range of financial products and services

that cater to the rural masses in all the important sectors like infrastructure, horticulture, food

processing, dairy, poultry, seeds, fertiliser and agrochemical industries. Customised financial

solutions are offered to individual customers, Agri small & medium enterprises, Agri

corporates and members of their supply chains. On the rural retail side, the Bank offers crop

loans, farm equipment financing, commodity-based loans, working capital loans for Agri-

enterprises, microfinance loans, jewel loans as well as savings, investment and insurance

products. In addition, bank is introducing products like rural housing finance to cater to the

needs of rural customers.

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❖ INTERNATIONAL BANKING

ICICI Bank has established a strong franchise among non-resident Indians (NRI). It has

established strong customer relationships by offering a comprehensive product suite,

technology-enabled access for overseas customers, a wide distribution network in India and

alliances with local banks in various markets. It has over 5,00,000 NRI customers.

It has undertaken significant brand-building initiatives in international markets and have

emerged as a well-recognized financial services brand for NRIs. It’s market share in inward

remittances into India has increased to over 25%. It has consolidated its global remittance

initiative, targeting non-Indian communities, by leveraging its core capabilities of technology-

based service delivery. A large number of remittance products were introduced to complement

the existing suite of products. The business focus has been on rolling out successful products

across multiple geographies and getting into high volume correspondent arrangements.

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ICICI Bank’s global network, today, spans 18 countries.

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PRODUCTS AND SERVICES:

BANKING ACCOUNTS

ICICI Bank offers a wide range of banking accounts such as Current, Saving, Life Plus Senior,

Recurring Deposit, Young Stars, Salary Account etc. tailor-made for every customer segment,

from children to senior citizens. Convenience and ease to access are the benefits of ICICI Bank

accounts.

❖ YOUNG STARS ACCOUNT

A special portal for children to learn banking basics, manage personal finances and have a

lot of fun.

❖ BANK@CAMPUS

This student banking services gives students access to their account details at the click of a

mouse. Plus, the student gets a cheque book, debit card and annual statements.

❖ SAVINGS ACCOUNTS

Convenience is the name of the game with ICICI bank’s savings account. whether it is an

ATM/debit card, easy withdrawal, easy loan options or internet banking, ICICI bank’s

saving account always keep you in touch of money.

❖ FIXED DEPOSITS

ICICI Bank offers a range of deposit solutions to meet varying needs at every stage of life.

It offers a range of tenures and other features to suit all requirements.

INSURANCE

The ICICI group offers a range of insurance products to cover varying needs ranging from life,

pensions and health, to home, motor and travel insurance. The products are made accessible to

customers through a wide network of advisors, banking partners, corporate agents and brokers

with the added convenience of being able to buy online.

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 ❖ LIFE INSURANCE

The ICICI group provides the many lives insurance product through ICICI Prudential

Life Insurance Company.

❖ GENERAL INSURANCE

The ICICI group provides the many general insurance products like motor, travel and home

insurance through ICICI Lombard General Insurance Company.

LOANS

ICICI bank offers a range of deposits solutions to meet varying needs at every stage of life. It

offers a range of tenures and other features to suit all requirements.

❖ HOME LOAN

The No. 1 Home Loans Provider in the country, ICICI Bank Home Loans offers some

unbeatable benefits to its customers - Doorstep Service, Simplified Documentation and

Guidance throughout the Process. It's really easy!

❖ PERSONAL LOAN

ICICI Bank Personal Loans are easy to get and absolutely hassle free. With minimum

documentation you can now secure a loan for an amount up to Rs. 15 lakhs.

❖ VEHICLE LOANS

The No. 1 financier for car loans in the country. Network of more than 2500 channel

partners in over 1000 locations. Tie-ups with all leading automobile manufacturers to

ensure the best deals. Flexible schemes & quick processing are the main advantages are

here. Avail attractive schemes at competitive interest rates from the No 1 Financier for

Two-Wheeler Loans in the country. Finance facility up to 90% of the On Road Cost

of the vehicle, repayable in convenient repayment options and comfortable tenors from

6 months to 36 months

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CARDS

ICICI Bank offers a variety of cards to suit different transactional needs. Its range includes

Credit Cards, Debit Cards and Prepaid cards. These cards offer you convenience for financial

transactions like cash withdrawal, shopping and travel. These cards are widely accepted both

in India and abroad.

❖ CREDIT CARD

ICICI Bank Credit Cards give you the facility of cash, convenience and a range of

benefits, anywhere in the world. These benefits range from life time free cards,

Insurance benefits, global emergency assistance service, discounts, utility payments,

travel discounts and much more.

❖ DEBIT CARD

The ICICI Bank Debit Card is a revolutionary form of cash that allows customers to

access their bank account around the clock, around the world. The ICICI Bank Debit

Card can be used for shopping at more than 3.5 Lakh merchants in India and 24 million

merchants worldwide.

❖ TRAVEL CARD

ICICI Bank Travel Card. The Hassle-Free way to Travel the world. Traveling with US

Dollar, Euro, Pound Sterling or Swiss Francs; Looking for security and convenience;

take ICICI Bank Travel Card. Issued in duplicate. Offers the Pin based security. Has

the convenience of usage of Credit or Debit card.

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MOBILE BANKING

Bank on the move with ICICI Bank Mobile Banking. With ICICI Bank, Banking is no longer

what it used to be. ICICI Bank offers Mobile Banking facility to all its Bank, Credit Card,

Demat and Loan customers.

ICICI Bank Mobile Banking can be divided into two broad categories of facilities:

❖ Alert facility: ICICI Bank Mobile Banking Alerts facility keeps you informed about

the significant transactions in yits Accounts. It keeps you updated wherever you go.

❖ Request facility: ICICI Bank Mobile Banking Requests facility enables you to query

for yits account balance.

INVESTMENT PRODUCTS: Along with Deposit products and Loan offerings, ICICI Bank

assists you to manage yits finances by providing various investment options ranging from

ICICI Bank Tax Saving Bonds to Equity Investments through Initial Public Offers and

Investment in Pure Gold. ICICI Bank facilitates following investment products:

• ICICI Bank Tax Saving Bonds

• Government of India Bonds

• Investment in Mutual Funds

• Initial Public Offers by Corporates

• Investment in "Pure Gold"

• Foreign Exchange Services

• Senior Citizens Savings Scheme, 2004

TRADE-SERVICES: ICICI Bank offers online remittances as well as online processing of

letters of credit and bank guarantees.

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ASSET-MANAGEMENT: Prudential ICICI Asset Management Company offers a wide range

of retail mutual fund products tailored to suit varied risk and maturity profiles.

CASH MANAGEMENT: ICICI Bank offers a complete range of highly customized solutions

for managing both the collections and payments requirements of clients by leveraging

technology. Daily customized transactions reports and real time web-enabled downloads,

provide on-tap information facilitating effective working capital management.

CORPORATE BANKING: ICICI Bank offers comprehensive and customized financial

solutions for its corporate clients, including rupee and foreign currency debts, working capital

credit, structured financing syndication and transaction banking products and services.

INTERNET BANKING: Internet banking is available to all ICICI bank savings and deposit

account holders, credit card, demat and loan customers. Internet banking service offers

customers a world of convenience with services such as balance enquiry, transaction history,

account statement, bill payments, fund transfers and accounts related service requests.

ATMs: With more than 2500 ATMs across the country, ICICI Bank has one of the largest

ATM networks in India

PHONE BANKING: Phone banking offers 24*7 service across liability, asset and investment

products to both retail and corporate customers.

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NRI-BANKING: A gamut of services to take care of all NRI banking needs including

deposits, money transfers and private banking.

MONEY2INDIA: A complete range of online and offline money transfer solutions to send

money to India.

PROPERTY: For millions of home buyers across the country, ICICI Bank offers not just great

deals on home loans but also a wealth of expert advice. ICICI Bank offers home search service

which can help a customer identify the property of his choice based on his budget and other

requirements.

DEMAT ACCOUNTS: ICICI Bank’s demat services after unique features like e-

constructions, consolidation, digitally signed statements, mobile requests and corporate

benefit tracking.

RURAL-BANKING: Bank offers technology-based solutions, financial innovations and

multiple delivery channels to meet the financial needs of rural areas.

MICROFINANCE: ICICI Bank assists over 2.5 million low-income clients to build

livelihoods by partnering with over 100 microfinance institutions.

BRANCHES: ICICI Bank has a network of over 630 branches (of which 51 are extension

counters) across the country. The network puts a wide range of banking products and financial

services within easy reach of retail and corporate customers.

ICICI MILESTONES

• 1988: Promoted TDICI – India’s first venture capital company.

• 1996: ICICI Ltd became the first company in the Indian financial sector to raise GDR.

• 1999: ICICI becomes the first Indian company to get listed on the NYSE through an

issue of American depository shares.

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• 2000: ICICI BANK became the first commercial bank from India to get its stock listed

on the NYSE.

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 CHAPTER 2

SWOT ANALYSIS OF ICICI BANK

Introduction to SWOT analysis.

The overall evaluation of the company’s Strength, Weakness, Opportunities and Threats is

called as SWOT Analysis. The external environment analysis of any business will give you the

opportunities and threats facing the business. The external environment consists of two parts:

STRENTH

•Right strategy for the right products.

• Superior customer service v/s competitors.

•Great Brand Image

•Products have required accreditations.

•High degree of customer satisfaction.

•Good place to work

WEAKNESS

•Lower response time with efficient and effective service

•Some gaps in range for certain sectors.

•Customer service staff needs training.

•Processes and systems, etc.

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•Management covers insufficient.

OPPORTUNITIES

•Profit margins will be good.

•Could extend too overseas broadly.

•New specialist applications.

•Could seek better customer deals

• Fast – track career development opportunities on an industry – wide basis

THREATS

•Legislation could impact.

•Great risk involved

•Very high competition prevailing in the industry.

•Vulnerable to reactive attack by major competitors

•Lack of infrastructure in rural areas could constrain investment

•High volume/low-cost market is intensely competitive.

Internal Environment Analysis

MARKET SHARE OF ICICI BANK

28/September/2023

Company name 52wk high 52wk low Market capital

(in crores)

HDFC BANK 639.25 400.45 148,189.76

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 ICICI BANK 1,086.75 641.00 121,961.81

KOTAK 649.90 432.80 48,078.27

MAHINDRA

AXIS BANK 1,309.00 784.50 47,050.84

IndusInd BANK 354.15 221.75 16,642.11

YES BANK 389.40 230.55 13,603.44

ICICI Bank, India's second-largest bank, is comfortable with a fall in market share as it

rebalances its liabilities, and will be well placed to capitalize on opportunities when market

conditions improve, its chief executive said.

"We are allowing for a correction to happen in our liability mix. If that warrants some

recalibration of our market share, we are comfortable," chief executive K.V. Kamath said in an

interview for the Reuters India Investment Summit.ICICI, which weathered a storm about its

health when investors grew worried about its exposure to the global financial crisis after the

collapse of Lehman Brothers in mid-September, has slowed lending as loan defaults

rise.ICICI's share of deposits and loans in the Indian banking system has slid to 6.5 per cent as

at September 2008 from 8.7 per cent in March 2007, according to three brokerages polled by

Reuters.

ORGANIZATION STRUCTURE OF ICICI BANK

• Retail banking.

• Wholesale banking

• Project finance and special assets management

• International business

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 • Corporate bank

Retail banking is banking in which banking institutions execute transactions directly with

consumers, rather than corporations or other banks. Services offered include savings and

transactional accounts, mortgages, personal loans, debit cards, and credit cards.

Wholesale banking is the provision of services by banks to the likes of Mortgage Brokers,

large corporate clients, mid-sized companies, real estate developers and investors, international

trade finance businesses, institutional customers (such as pension funds and government

entities/agencies), and services offered to other banks or other financial institutions.

Project finance is the medium- to long-term financing of infrastructure and industrial projects

based upon the projected cash flows of the project rather than the balance sheets of the project

sponsors.

Special assets management

1. The management of a client's investments by a financial services company, usually an

investment bank. The company will invest on behalf of its clients and give them access

to a wide range of traditional and alternative product offerings that would not be to the

average investors.

2. An account at a financial institution that includes checking services, credit cards, debit

cards, margin loans, the automatic sweep of cash balances into a money market fund,

as well as brokerage services.

An International Banking Facility (IBF) is a separate account established by a U.S.

bank, or a US branch/subsidiary of a foreign bank, or an Edge Act Corporation in the

United States to offer services to only non-US residents and institutions. The services

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 offered include deposit and loan services. (Note, an IBF is not necessarily a separate

legal entity.)

One Corporate Centre is an office skyscraper in Pasig City, Metro Manila, Philippines. It is

the 13th-tallest building in the country and Metro Manila as well with a height of 202 meters

(662.73 feet) [3] from ground to tip of architectural antenna. The building has 45 floors above

ground including 7 floors for commercial purposes, and 9 basement levels for parking

External Environmental Analysis

ICICI Bank PESTLE (or PESTEL) Analysis assesses the brand on its business tactics across

various parameters. PESTLE Analysis of ICICI Bank examines the various external factors

like political, economic, social, technological (PEST) which impacts its business along with

legal & environmental factors. Let us start the ICICI Bank PESTLE Analysis:

Political Factors:

The political factors in the ICICI Bank PESTLE Analysis can be explained as follows:

ICICI Bank has its operations in India and has its subsidiaries in many countries. The bank is

one of the biggest banks in India. To get this position and to maintain the position it has to

maintain good political connections. The stability of the political governance also important

for them to operate in a big democratic Nation. Due to pandemic and the great recession, the

government has taken many policies to revitalize the banks. ICICI bank is mainly for the

industry purpose, so the government which have best policies to ease for doing business is a

crucial thing for the bank. The policies related to the foreign trade also important for the bank.

21
The bank should always observe the policies which improves the disposable income of the

people.

Economic Factors:

Below are the economic factors in the PESTLE Analysis of ICICI Bank:

ICICI Bank has several financial aspects which define its business. Due to pandemic, the

economy of the people has decreased a lot. The recovery of the loan has decreased due to

mortgage policies taken up by the government. The economy of the nation is important for any

bank to operate smoothly. The Indian GDP is decreasing from the past five years and this year

it went down to the least. The government of India has taken many policies to revitalize the

economy. The government also make policies which helps for the Indian entrepreneurs and

SMEs. These policies help for the industrial growth of the India which indeed impact on the

operations of the bank.

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Social Factors:

Following are the social factors impacting ICICI Bank PESTLE Analysis:

Since saving money is an integral part of people’s behavior, it also impacts ICICI Bank’s

operations. Due to uncertainty in the future, people are more conscious on the financial terms.

People become more conscious about their and their family future needs. The way of

purchasing has changed a lot. People have the mindset of that the cost of the products will

increase in the future. Due to increase in family expenditure and other needs people are keen

to take the loans to meet their needs. The Indians also change their mindset of working to give

employment. Due to better education, people are keen to make their own way of living by

establishing start-ups.

Technological Factors:

The technological factors in the PESTLE Analysis of ICICI Bank are mentioned below:

In the past it is very difficult to run the banks with heavy paper work. Due to introduction of

date warehouse and online solutions in the bank, it makes the job very smoothly. Then the rise

of internet makes the operations of ICICI Bank robust, fast & reliable. Banks provide their

services to the consumers remotely. This is due to improve in technology in the AI, IOT, cloud-

based technology. These new generation technologies make the consumers and the bank

employees flexible to do their works smoothly. Due to improvement of new technologies, the

bank should also design new offerings to the people. The bank should also improve its

operations and give the fruits which it gains from the new technologies to the consumers.

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Legal Factors:

Following are the legal factors in the ICICI Bank PESTLE Analysis:

ICICI bank focuses on the laws created by the RBI. It also should ensure that its employees are

abide to the rules and regulations of RBI. It also should ensure that it abide to the rules of the

state and central governments to establish the banks and operate its operations. It also should

follow the rules of the RBI to introduce any new services. The bank should also ensure to

follow the rules of the host nations and ensure to practice safe banking policies.

Environmental Factors:

In the ICICI Bank PESTLE Analysis, the environmental elements affecting its business are as

below:

The ICICI bank usually use lots of non-renewable energy sources for its operations which

increases the carbon foot print. This is a crucial factor for the climate change. the climate

change has huge impact on the operations of the bank. The intensity of disasters due to climate

change make the income of the people to decrease which impacts on the bank operations. So,

the bank should be more ecofriendly and also should encourage the industries which shown

interest to reduce their carbon foot print. It also should focus on its stake holders which increase

the carbon foot print.

To conclude, the above ICICI Bank PESTLE Analysis highlights the various elements which

impact its business performance. This understanding helps to evaluate the criticality of external

business factors for any brand.

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COMPITITORS INFORMATION

28/SEP/2023

NAME NET INTREST NET PROFIT TOTAL ASSETS

INCOME (in cr) (in cr)

(in cr)

HDFC BANK 27286.35 5167.07 337909.49

ICICI BANK 33542.65 6465.26 473647.09

KOTAK 6,180.24 1085.05 65,666.46

MAHINDRA

AXIS BANK 21994.65 4242.21 285627.79

YES BANK 6307.35 976.99 73662.12

CITY UNION 1696.77 280.25 18350.65

BANK

HDFC Bank Limited is an Indian financial services company based in Mumbai, Maharashtra

that was incorporated in August 1994. HDFC Bank is the fifth or sixth largest bank in India by

assets and the second largest bank by market capitalization as of February 24, 2012. The bank

was promoted by the Housing Development Finance Corporation, a premier housing finance

company (set up in 1977) of India. HDFC Bank has 1,986 branches and over 5,471 ATMs, in

996 cities in India, and all branches of the bank are linked on an online real-time basis.

Axis Bank Limited is an Indian financial services firm headquartered in Mumbai,

Maharashtra. It had begun operations in 1994, after the Government of India allowed new

25
private banks to be established. The Bank was promoted jointly by the Administrator of the

Specified Undertaking of the Unit Trust of India (UTI-I), Life Insurance Corporation of India

(LIC), General Insurance Corporation Ltd., National Insurance Company Ltd., The New India

Assurance Company, The Oriental Insurance Corporation and United India Insurance

Company UTI-I holds a special position in the Indian capital markets and has promoted many

leading financial institutions in the country. As on the year ended 31 March, 2012, Axis Bank

had an operating revenue of 13,437 crores and a net profit of 4,242 crores.

Yes, Bank is a private bank in India. It was founded by Ashok Kapur and Rana Kapoor, with

the duo holding a collective financial stake of 27.16%. YES, Bank has received significant

national and international recognitions which include Mr. Rana Kapoor, Founder, MD & CEO

being recognized as the Entrepreneurial Banker of the Decade (2001-2010) by Bombay

Management Association, India's No. 1 New Private Sector Bank in the Financial Express-

E&Y Best Banks Survey 2010, India's Fastest Growing Bank of the Year at the Bloomberg

UTV Financial Leadership Awards 2011.

Kotak Mahindra Bank is an Indian financial service firm established in 1985. It was

previously known as Kotak Mahindra Finance Limited, a non-banking financial company. In

February 2003, Kotak Mahindra Finance Ltd, the group's flagship company was given the

license to carry on banking business by the Reserve Bank of India (RBI). Kotak Mahindra

Finance Ltd. is the first company in the Indian banking history to convert to a bank. Today it

has more than 20,000 employees and Rs. 10,000 crores in revenue.

26
THE KEY CHALLENGES

ICICI Bank Ltd.’s takeover of Bank of Rajasthan Ltd (BOR) will have to clear a new regulatory

hurdle before it can be completed, according to a senior official in the industry

ministry. Most banking mergers can move ahead once they get a green signal from the

Reserve Bank of India (RBI), but the deal between India’s largest private sector lender

and the troubled regional bank will need to be cleared by the government as well because

of the provisions of a controversial policy that categorizes ICICI Bank as a foreign-owned one;

despite its local presence and Indian management. “The merger needs the approval of the FIPB

(Foreign Investment Promotion Board) under Press Note 3. Under the Press Note 3 of 2009

series, if the ownership of an existing Indian company is transferred to a n o n - r e s i d e n t

entity, as a consequence of transfer of shares to nonresident entities

t h r o u g h amalgamation, merger or acquisition, then it would require FIPB approval. Private

sector lenders ICICI Bank and HDFC Bank Ltd were defined as foreign-owned under the new

rules since more than half their equity is owned by foreign entities, including

foreign institutional investors, who have no board presence or say in company policy. This

regulation is applicable in sectors with foreign direct investment (FDI) caps, such

as defense production, private sector banking, broadcasting, commodity

exchanges, insurance, print media, telecommunications and satellites, according to the

press note. Any foreign firm trying to gain control of local companies needs the prior approval

of FIPB.A spokesperson for ICICI Bank said the bank would not comment on any issue relating

to BOR till the conclusion of its board meeting on 23 May.

At ICICI Bank, the selection process aims at getting applicants who are likely to succeed at

various roles in the Bank. The Endeavour is to select people who have a high service

orientation, are passionate about their career goals, and who display integrity and ethics in all

engagements.

27
The growth in the balance sheet has come to a complete halt compared to a 40% average annual

growth it posted in the period from 2005-08. The size of bank's balance sheet declined by 5.1%

in FY 2009. In the days of the economic boom, the bank's growth was fueled by an

unprecedented growth in retail loans. In fact, even at the end of FY 2009, retail loans

constituted 49% of its total loan book – the highest for any bank in India. As the slowdown

started making its presence felt in the Indian economy, the retail loan segment became rather

risky. Interestingly, what had made the bank is today causing it a great deal of concern.

Feeling the heat, ICICI Bank, wisely, made it clear last year that more attention will be given

to cleaning its books and taking stock of the situation than to grow. Not surprisingly, there is

merit in paying more attention to its rising non-performing assets (NPA). The bank's net NPA

jumped from 1.55% of its net advances at the end of March 08 to 2.09% at the end of March

09. At current levels, it has the highest NPAs, in percentage terms, across large banks in the

country

Being proactive

ICICI Bank has been trying to tackle the slowdown from all means it has with one of them

being cost containment. Its operating expenses declined 13.6% on a year-on-year (y-o-y) basis

in FY09. A bulk of the cost reduction was achieved by bringing operational activities in-house,

i.e. by reducing the role of direct marketing agents" noted Share khan in its research report.

It is also trying to improve the share of current and savings account (CASA) deposit, which

attract lower interest rates and help in reducing the cost of deposit. CASA deposits formed

28.7% of its total deposits at the end of March 09 compared to 26.1% a year ago. This was

evident during the analyst conference call for the FY09 results. At that point, Kochhar

commented, "My intention is that we should at least get to about 33% of CASA ratio before

we start pressing the accelerator on lending."

28
For now, the bank is still struggling as its profit dropped by 35.3% y-o-y for the March 09

quarter. Its performance is in stark contrast to its peers in the banking industry. For instance,

SBI posted a 31.6% y-o-y growth in its net profit for nine months ending Dec'08. HDFC Bank

posted a 41.2% y-o-y growth in its net profit in FY09.

For Kochhar, who has taken over the reins of the ICICI Bank from KV Kamath, the road ahead

will be fraught with challenges. Some senior executives like Shikha Sharma, who headed ICICI

Prudential Life Insurance and Renuka Ramnath, who headed ICICI Venture Capital have

decided to move on. Without a doubt, Kochhar will have her hands full. The road ahead for

ICICI Bank promises to be interesting

29
 CHAPTER 3

Functional Analysis -Marketing

Marketing Strategy of ICICI Bank analyses the brand with the marketing mix framework which

covers the 4Ps (Product, Price, Place, Promotion). These business strategies, based on ICICI

Bank marketing mix, help the brand succeed in the market. Let us start the ICICI Bank

Marketing Strategy & Mix to understand its product, pricing, advertising & distribution

strategies:

ICICI Bank Product Strategy:

The product strategy and mix in ICICI Bank marketing strategy can be explained as follows:

ICICI Bank is one of the leading banks and financial service institutions in India. ICICI bank

offers various banking services in its marketing mix across various verticals, geographies and

customer requirements.

The different products available by ICICI are as follows:

30
ICICI Bank Price/Pricing Strategy:

Below is the pricing strategy in ICICI Bank marketing strategy:

ICICI bank, like any other bank is governed by RBI guidelines in India. ICICI has many

features for its loyal customers. Since there is immense competition, ICICI bank works on

improvement in each level so as to retain customer. It gives many values added services. It has

great market share because if it gathering revenue by increasing quantity keeping price low.

ICICI offers great loans and schemes to attract customer. In 2012, under evaluating policy, it

gave customer my saving rewards and has tied up with payback cards where for all transaction

points are given which is converted into a monetary worth and gifts can be taken as per that

money. This gives an insight in ICICI bank’s pricing policies in its marketing mix and how it

has helped the brand grow.

ICICI Bank Place & Distribution Strategy:

Following is the distribution strategy in the ICICI Bank marketing mix:

ICICI bank has got a massive presence spread across India. More than 4400+ branches of ICICI

are present across cities and towns along with 14000+ ATMs. ICICI spreads in 19 countries

with many ATMS, branches, and banks. Services are provided 24*7 with modern facilities and

information centers. They also have direct selling agents which contacts customer at place

rather than coming to bank.

31
ICICI Bank Promotion & Advertising Strategy:

The promotional and advertising strategy in the ICICI Bank marketing strategy is as follows:

ICICI Bank has always been a leader as far as marketing is concerned. Advertising and

branding exercises in its marketing mix have always been full of impact. Direct and indirect

way of communication. Promotion of ICICI includes not only conveying the modernization

but also benefits given. It involves advertisements, personality like Amitabh Bachchan, and the

value proposition of ICICI bank is "hum Hai na" which signifies trust. Promotions through

films and through technology, they can now track the interest and demands of customer. ICICI

bank uses TV, print, online ads, billboards etc. to spread brand awareness about the brand.

Since this is a service marketing brand, here are the other three Ps to make it the 7Ps marketing

mix of ICICI Bank.

People:

ICICI bank follows a standard quality policy and believes in providing superior, pro-active,

state of art and innovative services with an attitude for care and concern for customers and

patrons. With this attitude ICICI renders high quality services to all the shareholders and

stakeholders. Since ICICI bank has its offices in so many countries, it is very evident that the

company believes in diversity which definitely helps the company in its growth and prosperity.

ICICI bank has more than 70,000+ people employed in the organization.

Physical Evidence:

ICICI provides best in house facilities and employee perks just like other PSUs with up-to-date

infrastructure and global environment in all its offices. The organization culture motivates the

32
employees each and every day and helps them in achieving their goals productively. This in

turn helps in organization’s growth as well.

Process:

ICICI has several processes related to customer acquisition, banking services, investment

options, insurance claims etc. which help the bank in doing efficient business. Through the

various social activities and best practices ICICI maintains an image which is not tampered by

any means, and the bank works continuously to maintain the same image. The customers stay

highly motivated and the loyal employees also help in avoiding any bad word of mouth. Hence,

this concludes the ICICI marketing mix.

About ICICI Bank:

ICICI Bank was created in 1955 as a JV of World Bank, public-sector banks from India and

insurance companies with a motive to create development financial institutions for medium

and long-term projects financing the Indian Business. In 1994, it was promoted to ICICI

Limited. In 1990s, ICICI diversified its products from just a development financial institution

offering only product finance to diversified financial services. 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

ICICI Bank is headquartered in Mumbai with registered office in Vadodara and second largest

in terms of assets and third in terms of market capitalization. Because of tremendous

competition, there was a move towards universal banking which led to merger of ICICI

management and ICICI bank and create optimal legal structure.

33
Functional Analysis -Finance

A number of methods can be used for the purpose of analysis of financial statements. These

are also termed as techniques or tools of financial analysis. Out of these, and enterprise can

choose those techniques which are suitable to its requirements. The principal techniques of

financial analysis are: -

➢ Balance sheet

➢ Income Statement

➢ Cash flow analysis, Capital Structure and Yearly results

➢ Ratio Analysis

34
35
Income Statement

36
CASH FLOW

37
CAPTIAL STRUCTURE

38
YEARLY RESULTS

39
40
41
FINANCIAL RATIOS

42
CURRENT RATIO:

An indication of a company's ability to meet short-term debt obligations; the higher the ratio,

the more liquid the company is. Current ratio is equal to current assets divided by current

liabilities. If the current assets of a company are more than twice the current liabilities, then

that company is generally considered to have good short-term financial strength. If current

liabilities exceed current assets, then the company may have problems meeting its short-term

obligations.

Current ratio = Current Assets / Current Liability

43
Interpretation: An ideal solvency ratio is 2. The ratio of 2 is considered as a safe margin of

solvency due to the fact that if current assets are reduced to half (e.) 1 instead of 2, then also

the creditors will be able to get their payments in full.

Current ratio of the firm has increased over the year which indicates that the firm has enough

current assets to pay off its current liability. From 2016 to2018 the current ratio is below! which

is not a satisfactory safety margin, but from 2019 to 2020 the ratio jumps excessively and

maintain its position above 2 which means banks have enough money now to pay its current

liabilities.

EARNING PER SHARE: -

Earnings per share (EPS) is the portion of a company's profit allocated to each outstanding

share of common stock. Earnings per share serves as an indicator of a company's profitability.

It measures the profit available to equity shareholders on a per share basis, that is, the amount

that they can get on every day share held.

Earning Per Equity Share= Net Profit after Tax-Preference Dividend /No. of Equity

shares

The earnings per share of the company helps in determining the market price of the equity

shares of the company. A comparison of earning per share of the company with another will

also help in deciding whether the equity share capital is being effectively used or n

44
Interpretation: -

Earnings Per Share is the most commonly used data which reflects the performance and

prospects of the company. It affects the market price of shares. Here the earning per share was

consistently declining due to its financials reason and at last year it increases from the previous

one. Over the years EPS of the firm is decreasing which indicates that per share earnings of the

firm has decreased and in last year it shows an upward trend.

DIVIDEND PER SHARE

It is expressed by dividing dividend paid to equity shareholders by no, of equity shares, this

shows the per share dividend given to equity shareholders. It is very helpful for potential

investors to know the dividend paying capacity of the company. It affects the market value of

the company.

Dividend Per Share Dividend Paid to Equity Shareholders / No. Of Equity Shares

45
Interpretation: -

Here the Dividend Per Share is decreased and in 2017 dps becomes zero and then in 2018 it

was up from previous year but after that again it started decreasing. The dividend per share

ratio of the bank is quite not satisfactory which shows the bank has not a good dividend paying

capacity. Dividend per share over the years has decreased which indicates that the amount of

dividend distributed towards the shareholder has decreased.

NET PROFIT RATIO: -

Net profit ratio compares a company's net income to its net revenue. This ratio is calculated by

dividing net income, or a company's bottom line, by net revenue. It measures a firm's ability to

translate sales into earnings for shareholders. Once again, investors should look for companies

with strong and consistent net profit margins.

46
Net Profit Ratio = Net Profit before Interest and tax /Revenue from operation (Net sales)

* 100

Interpretation: -

Although the sales and have increased during the above period but net profit was firstly

increased but in following years it started decreasing and then in last year it increased from

previous one. Net Profit Ratio of the bank is declining in first four years and in last year it

increased from previous years this is because of the reason that net profits and sales are

fluctuating very much,

47
OPERATING PROFIT RATIO-

Operating profit ratio is calculated by dividing operating income (gross income fewer operating

expenses) by net revenue. Operating ratio examines the relationship between sales and

management-controlled costs. Increasing operating ratio is generally seen as a good sign, but

investors should simply be looking for strong, consistent operating ratio.

Operating Profit Ratio= Operating Profit/Revenue from operation*100

Interpretation –

It is clearly shown in graph that operating profit of the bank are negative in last 5 years which

is totally not expectable. Bank may need to add new income streams that can supplement

unprofitable ventures or products, or do away with those altogether. By analyzing the operating

profit margins of competitors in its industry, a company can determine what to aim for.

Therefore, the bank should check on unnecessary operating expenses to correct this situation

and to provide a sufficient return If a bank is experiencing negative operating profit margins,

they can only survive as long as their cash reserves will allow. If they begin to run out of cash

48
on hand, they may have to sell assets in order to cover their expenses and remain in operation.

If selling assets is not a viable option for whatever reason, seeking outside financing may be

the only option left. Therefore, the bank should check on unnecessary operating expenses to

correct this situation and to provide a sufficient return.

NET WORTH RATIO: -

The net worth ratio states the return that shareholders could receive on their investments in a

company, if all of the profit earned were to be passed through directly to them. Thus, the ratio

is developed from the perspective of shareholder; not the company, and is used to analyses

investor returns. The ratio is useful as a measure of how well a company is utilizing the

shareholders’ investment to create returns for them, and can be used for comparison purposes

with competitors in the same industry.

Return On Net Worth = Net Profit After Interest and Tax. * 100

49
Interpretation: -

It is clear visible from the graph that the net worth ratio of ICICI bank was increased from 7%

to 10% during 2016 to 2020. Which revealed that ICICI bank has utilized its resources more

efficiently and shows that shareholders prefer to invest in ICICI bank.

DEBT EQUITY RATIO

The Debt-Equity ratio is calculated to find out the long-term financial position of the firm. This

ratio indicates the relationship between long-term debts and shareholder's funds. The soundness

of long-term financial policies of a firm can be determined with the help of this ratio. It helps

to assess the soundness of long-term financial policies of a business. It also helps to determine

the relative stakes of outsiders and shareholders. Long-term creditors can assess the security of

their funds in a business, it indicates to what extent a firm depends upon lenders to meet its

long-term financial requirements. A low Debt-Equity ratio is considered better from the point

of view of creditors.

Debt Equity Ratio = Total Debt /Total Equity * 100

50
Interpretation: -

The ratio shows the extent to which funds have been provided by long-term creditors as

compared to the funds provided by the owners Here the Debt-Equity ratio for the above period

is decreased over years this shows that the bank is decreasing its relying on outside funds as

compared to internal sources of capital, in its capital structure. From the long-term lenders

point of view this ratio is satisfactory.

CREDIT DEPOSIT RATIO: -

The credit deposit ratio popularly known as CD ratio is the ratio of how a bank lends out of the

deposit it has mobilized. RBI does not stipulate a minimum or maximum level for the ratio, but

a very low ratio indicates banks are not making full use of their resources: Alternatively, a high

ratio indicates more reliance on deposits for lending and a likes pressure on resources, CD ratio

helps in assessing banks liquidity and indicates its health.

Deposits = Credit Deposit / Ratio Credits * 100

51
Interpretation: -

Above table exhibits credit deposit ratio of the bank during last 5 years. In the year 2016 ratio

was 107% and it declined to 103% and 94%in the year 2017 and 2018 respectively. In the year

2008 and 2009 ratio was again decreased to 91% and 89% respectively. It leads to conclusion

that credit performance of the bank at starting is in danger but after that it maintain its correct

position and now credit performance is quite good.

RETURN ON CAPITAL EMPLOYED: -

It establishes relationship between profit before interest and tax and capital employed. It

indicates the percentage of return on the total capital employed in the business. This ratio is

also known as Return on Investment. It measures the overall efficiency and profitability of the

business in relation to investment made in business. It also shows how efficiently the resources

are used in the business. comparison of one unit with that of the other or performance in one

year with that of the same unit is possible. It is calculated as below:

ROCE = Earnings Before Interest and Tax / Capital Employed * 100

52
Interpretation: -

The above table exhibit the return on capital employed ratio of the bank for last five years. This

ratio measures the earning of the net assets of the business. The ratio was 3.46% in year 2016.

After that it rise to the tune of 3.75% and decreasing in the year 2018 and 2019 at 3.10% and

2.39% In 2020 it rise to 2.6% Return on capital employed of the bank is overall decreased in

lust 5 years which is not a good result and revealed that bank doesn't use its capital efficiently

FIXED ASSETS TURNOVER RATIO: -

It is also called as Sales to Fixed Assets Ratio. It measures the efficient use of fixed assets. This

ratio is a measure of efficient use of fixed assets, it is calculated as:

Fixed Assets Turnover Ratio = Cost of goods sold or Sales/ Net Fixed Assets

It measures the efficiency and profit earning capacity of the business. Higher the ratio, greater

is the intensive utilization of fixed assets and a lower ratio shows underutilization of the fixed

assets. This ratio has a special importance for manufacturing concerns where investment in

fixed assets, is very high and the profitability is significantly dependent on the utilization of

these assets.

53
Interpretation: -

Here the fixed assets employed in the business shows an increasing trend in all the years. The

fixed assets turnover ratio has been increasing in overall period of time. It indicates that fixed

assets have been effectively used in the business without much additional investment in the

period of study and also the capital is not blocked in fixed assets.

54
Functional Analysis -HRM

INTRODUCTION

People are integral part of any organization today. No organization can run without its human

resources. In today’s highly complex and competitive situation, choice of right person at the

right place has far reaching implications for an organization’s functioning. Employee well

selected and well placed would not only contribute to the efficient running of the organization

but offer significant potential for future replacement. This hiring is an important function. The

process of hiring begins with human resource planning (HRP) which helps to determine the

number and type of people on organization needs. Job analysis and job design enables to

specify the task and duties of hobs and qualification expected from prospective job HRP, job

analysis, hob design helps to identify the kind of people required in an organization and hence

hiring. It should be noted that hiring is an ongoing process and not confined to formative stages

of an organization. Employees leave the organization in search of greener pastures; some retire

and some die in the saddle. More importantly an enterprise grows, diversifies, take over the

other units all necessitating hiring of new men and women. In fact, the hiring function stops

only when the organization ceases to exist.

Hiring involves two board activities: -

i) Recruitment

ii) Selection

55
RECRUITMENT

Definition:

According to Edwin B. Flippo, “Recruitment is the process of searching the candidates for

employment and stimulating them to apply for jobs in the organization.”

The word ‘recruitment’ has many meanings and plays an important role. Employees leave the

organization in search of greener pastures- some retire some die in saddle. The most important

thing is that enterprise grows, diversifies, and takes over other units-all necessitating hiring of

new men and women. In fact, recruitment functions stop only when the organization ceases to

exist. To understand recruitment in simple terms it is understood as process of searching for

obtaining applications of job from among from which the right people can be selected. To

define recruitment, we can define it formally as it is a process of finding and attracting capable

applicants for employment. The process begins when new recruit is sought and ends when their

application is submitted. The result is a pool of applicants from which new employees are

selected. Theoretically, recruitment process is said to end with receipt of application in practice

the activity extends to the screening applicants as to eliminate those who are not qualified for

job.

FACTORS AFFECTING RECRUITMENT

There are a number of factors that affect recruitment. These are broadly classified into

two categories:

1. Internal factors

2. External factors

INTERNAL FACTORS

56
The internal factors also called as “endogenous factors” are the factors within the organization

that affect recruiting personnel in the organization.

Some of these are: -

Size of the organization

The size of the organization affects the recruitment process. Larger organization finds

recruitment less problematic than organization with smaller in size.

Recruiting policy

The recruitment policy of the organization i.e. recruiting from internal sources and external

sources also affect the recruitment process. Generally, recruitment through internal sources is

preferred, because own employees know the organization and they can well fit in to the

organization culture.

Image of the organization

Image of the organization is another factor having its influence on the recruitment process of

the organization. Good image of the organization earned by the number of overt and covert

action by management helps attract potential and complete candidates. Managerial actions like

good public relations, rendering public service like building roads, public parks, hospitals and

schools help earn image or goodwill for organization. That is why chip companies attract the

larger numbers of application.

Image of the job

57
Better remuneration and working conditions are considered the characteristics of good image

of a job. Besides, promotion and carrier development policies of organization also attract

potential candidates.

EXTERNAL FACTORS

Like internal factors, there are some factors external to organization, which have their

influence on recruitment process. Some of these are given below: -

Demographic factors

As demographics factors are intimately related to human beings, i.e. employees, these have

profound influence on recruitment process. Demographic factors include age, sex, Literacy,

economics status etc.

Labor market

Labor market condition I.e. supply and demand of labour is of particular importance in

affecting recruitment process. E.g. if the demand for specific skill is high relative to its supply

is more than for particular skill, recruitment will be relatively easier.

Unemployment situation

The rate of unemployment is yet another external factor its influence on the recruitment

process. When the employment rate in an area is high, the recruitment process tends to simpler.

The reason is not difficult to seek. The number of applications is expectedly very high which

makes easier to attract the best-qualified applications. The reserve is also true. With low rate

of unemployment, recruiting process tend to become difficult

58
Labor laws

There are several labour laws and regulations passed by the central and state governments that

govern different type of employment. This cover working condition, compensation, retirement

benefits, safety and health of employee in industrial undertakings.

The child Labour Act, 1986; for example, prohibits employment of children in certain

employments. Similarly, several other acts such as the Employment Exchange Act,1958; The

Apprentice Act, 1961; the Factory Act,1948; and The Mines Act, 1952 deal with recruitment.

Legal consideration

Another external factor is legal consideration with regard to employment reservation of jobs

for schedule tribes, and other backward class (OBC) is the popular examples of such legal

consideration. The supreme court of India has given its verdict in favour of 50 per cent of jobs

and seats. This is so in case admission in the educational institutions also.

RECRUIMENT PROCESS

As stated earlier, recruitment is the process of location, identifying, and attracting capable

applications for jobs available in an organization. Accordingly, the recruitment process

comprises the following five steps:

• Recruitment planning;

• Strategy Development;

• Searching;

59
• Screening;

• Evaluation and Control.

SELECTION

MEANING AND DEFINITION.

Selection is the process of picking individuals (out of the pool of job applicants) with requisite

qualifications and competence to fill jobs in the organization. A formal definition of Selection

is: -

“It is the process of differentiating between applicants in order to identify (and here) those

with a greater likelihood of success in a job.’’

Recruitment and selection are the two crucial in the HR process and are often used

interchangeably. There I, however, a fine distinction between the two steps. While recruitment

refers to the process of identifying and encouraging prospective employees to apply for jobs,

selection is concerned with picking the right candidates from the pool of applicants.

Recruitment is said to be positive in its approach as it seeks to attract as many candidates as

possible. Selection, on the other hand, is negative in its application in as it seeks to eliminate

as many unqualified applicants as possible in order to identify the right candidates.

ROLE OF SELECTION

The role of selection in an organization’s effectiveness is crucial for at least, two reasons; first,

work performance depends on individuals. The best way to improve performance is to hire

people who have the competence and the willingness to work. Arguing from the employee’s

viewpoint, poor or inappropriate choice can be demoralizing to the individual concerned (who

60
finds himself or herself in the wrong job) and de-motivating to the rest of the workforce.

Effective selection, therefore, assumes greater relevance.

Second, cost incurred in recruiting and hiring personnel speaks about volumes of the selection.

Costs of wrong selection are greater.

STEPS IN SELECTION PROCESS

The Objectives of recruitment and selection procedures

OBJECTIVES

• To ensure all recruitment and selection procedures comply with the Equal Opportunity

Policy.

• To ensure that all appointments are made on merit

61
 • To develop and maintain procedures which will assist in ensuring the appointment of

the most suitable candidate

• . To ensure that recruitment procedures are clear, valid and consistently applied by those

involved in recruitment and that they provide for fair and equitable treatment for those

who apply for employment.

SCOPE

1. To structure the Recruitment policy of company for different categories of employees.

2. To analyse the recruitment policy of the organization.

3. To compare the Recruitment policy with general policy.

4. To provide a systematic recruitment process.

5. It extends to the whole Organization. It covers corporate office, sites and works appointments

all over India.

6. It covers workers, Clerical Staff, Officers, Jr. Management, Middle Management and Senior

Management cadres

RECRUITMENT AND SELECTION PROCEDURE IN ICICI BANK

“The art of choosing men is not nearly so difficult as the art of enabling those ones has chosen

to attain their full worth”. Recruitment is the process by which organizations locate and attract

individuals to fill job vacancies. Most organizations have a continuing need to recruit new

employees to replace those who leave or are promoted in order to acquire new skills and

promote organizational growth. Recruitment follows HR planning and goes hand in hand with

62
selection process by which organizations evaluate the suitability of candidates. With successful

recruiting to create a sizeable pool of candidates, even the most accurate selection system is of

little use Recruiting begins when a vacancy occurs and the recruiter receives authorization to

fill it. The next step is careful examination of the job and enumeration of skills, abilities and

experience needed to perform the job successfully. Other steps follow:

v Creating an applicant pool using internal or external methods

v Evaluate candidates via selection

v Convince the candidate

v and finally make an offer

Scope: To define the process and flow of activities while recruiting, selecting and appointing

personnel on the permanent rolls of an organization.

Authorization:

Sunoo. Authorized Signatory

1 Head- Human resource

2 Managing director

Amendments and deviations:

Any amendments to and deviations from this policy can only be authorized by the Head-human

Resources and the Managing Director.

Exclusions:

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The policy does not cover the detailed formalities involved after the candidate joins the

organization.

ACTIVITY FLOW

The organization philosophy should be kept in mind while formulating the recruitment

procedure.

The HR department would set the recruitment norms for the organization. However, the onus

of effective implementation and compliance with the process rests with the heads of the

respective functions and departments who are involved in the recruitment and selection

process.

The process is aimed at defining the series of activities that needs to be performed by different

persons involved in the process of recruitment, the checks and control measures to be adopted

and information that has to be captured.

Recruitment and Selection is conducted by:

v HR & Branch Manager

v Functional Head

RECRUITMENT PLANNING

Recruitment planning on the basis of budget

A. The manpower planning process for the year would commence with the

company’s budgeting activity. The respective Functional heads would submit

the manpower requirements of their respective functions/ departments to the

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 board of Directors as part of the annual business plan after detailed discussion

with the head of human Resource Function along with detailed notes in support

of the projected numbers assumptions regarding the direct and indirect salary

costs for each position.

B. A copy of the duly approved manpower plan would be forwarded by the HR

department for their further actions during the course of the year. The annual

budget would specify the manpower requirement of the entire organization, at

different levels, in various functions/departments, at different geographical

locations and the timing of the individual requirements. It would also specify

the requirement budget, which is the cost allotted towards the recruitment of the

budgeted staff and the replacement of the existing employees. The manpower

plan would also clearly indicate the exact time at which the incumbent should

be on board in such a way that the Regional HR has adequate notice for the time

lapses involved in sourcing any other activities.

C. The Regional HRs would undertake the planning activity and necessary

preparations in advance of the anticipated requirements, as monthly and

quarterly activities on the basis of the approved budget, estimated separations

and replacements therefore.

D. The vacancies sought to be filled or being filled shall always be within the

approved annual manpower budget and no recruitment process shall be initiated

without the formal concurrence of the Head of the Regional HR under any

circumstance. Head of the Regional HR shall also have the responsibility to

monitor the appointments being considered at any point of time with specific

respect to the duly approved manpower budgets.

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Review of Manpower Plans and Additional Manpower

A. Review of manpower budgets shall take place on a quarterly basis. In the event

of any new position or any deviations to the original plans, details of the

positions maybe forwarded to the VP-HR along with the adequate supporting

information. The recommendations would normally require a formal approval

of the Managing Director. Alternately, VP-HR may record the summary of his

discussion with the Managing Director and the MD’s approval on the

recommendations, to signify the final decision taken regarding the

recommendations.

SOURCING OF SUITABLE CANDIDATES

Selection of Sources

Regional HR would tap various sources/channels for getting the right candidate.

Depending on the nature of the position/grade, volumes of recruitment and any other

relevant factors, the Regional HR would use any one multiple source such as:

v Existing database (active application data bank);

v Employee referral as per any company scheme that may be approved from time to

time;

v Advertisement in the internet/newspapers/magazines/company’s sites/job sites or any

other media;

v Placement Agencies (particularly for positions of Managers and above);

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 v Headhunting firms particularly for senior positions, specialist positions and critical

positions;

v Direct recruitment from campuses/academic institutes;

v Job websites and

v Any other appropriate sources.

The norms for using any of the sources are not water tight. Number of positions, criticality of

positions and the urgency of the positions, confidentiality requirements, relative efficacy and

cost considerations would play a role in the choice of the appropriate sourcing mechanism.

ADVERTISEMENTS

v All recruitment advertisements (in any form and any medium) shall always conform

to the KLI compliance norms and would not be released by any department or

branch without the approval of the VP-HR. depending on the specifics of each

position for which recruitment advertisements are to be released, Regional HR may

obtain assistance from the company’s marketing department and/or any external

advertising agencies for the preparation of the contents. Key features of the

positions as notified by the Functional Heads would normally form a part of the

advertisement text.

v the media for releasing advertisement would depend on the level of the position being

considered and the urgency of the requirements.

v the advertisement mode that could be broadly specified as newspapers (local or

mainline depending on requirements), internet sites and business magazines.

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Placement Agencies/Headhunting Agencies

v Depending upon the vacancies, fresher fitting different description listed above may

be recruited from time to time, from academic institutes of appropriate

standards/reputation/grade, in the requisite numbers and at the

compensation/stipend amounts to be formally approved of the VP-HR. Plans for

such recruitment need specific special approval of VP-HR. norms regarding the

identification of the appropriate institutes, constitution of the selection panels,

timings of the recruitment, number of candidates to be recruited into different

positions, choice of the appropriate selection process and the tools thereof shall be

decided by the Head of the Regional HR in consultation with the VP-HR, depending

on the specific features of the position.

Screening the candidates

First level screening

The Candidates would be screened by the HR Manager/Branch Manager for the respective

locations. Screening would be on the basis of the profile of the candidate and the departmental

requirements.

This assessment will be with respect to:

a. The general profile of the candidate,

b. Personality fit of the candidate into the profile,

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 c. Aptitude/attitude of the candidate,

d. Motives of the person to join the company and whether focus is in the short term

or is a long-term player,

e. Basic skill level on our set of requirements, say numerically ability, networking

ability, etc

f. Establish the annual guaranteed cash compensation of the individual and check

whether the person would fit into the system.

g. Explain the role of Sales manager to the applicant and check the acceptance of

the candidate for the same.

In case of need, the Regional HR may take a Tele interview of the candidate for further

assessment process.

Second Level Screening

Aptitude Test

If the first assessment is positive, the candidates will give the aptitude test, once such test is

selected approved by the company. The scoring, interpretation and the generation of interview

probes from that test will also be done at this time. People who qualify the minimum criteria

on this test will be put up on to the Functional Head (VPs in case of HO) for functional

assessment and suitability into the role.

Tied Agency Sales Manager candidates short listed by the BM have will then take sales

Aptitude test, once such a test is finalized. For the final selection, the regional Manager

(Business Heads for HO) will meet the candidates short listed by the branch manager/VP. The

chart specifying the Minimum approval level for each level of recruitment is specified below:

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 Category Branch Area Business Managing

Manager/Chief Manager/AVP/VP Heads Director

Manager

CSE/ADVISORS Yes No No No

BIC Yes Yes No No

BM/CM Yes Yes Yes No

SM Yes Yes Yes Yes

General Norms regarding interview Process:

A. Interviews should consider the entire data provided by the candidate either

through the formal CV or otherwise before coming to a conclusion about the

candidate. They may insist on seeing the proof of the claims made by the

candidate regarding qualifications, experience and other achievements. They

may, at their discretion, decide to meet the candidate on more than one occasion

or to refer the candidate to another panel.

B. Ratings on various attributes of the candidates shall be recorded in the interview

evaluation sheet, soon after the interview is over. Along with these numerical

ratings, qualitative observations about the candidate and overall decision

regarding selection or otherwise (including a decision to defer the induction,

referral to another panel, considering for another position) shall be forwarded

to the associated Recruitment Manager/ Head of Regional HR. Individual panel

members have the option of appending their additional remarks/observations.

No selection will be treated as final unless the IES form is filled

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 comprehensively. Suitably appropriate IES formats may be created for specific

positions.

C. Any discrepancies noticed by the panel members regarding the authenticity of

the data provided by the candidate should be specifically and formally recorded

on the IES form and suitably high lightened.

D. Specific points to be probed during the reference check process, if any, must

also be clearly recorded and high lightened on the IES forms.

Administrative Actions Regarding Interviews

A. Scheduling and the venue of the interviews would be handled by the recruitment

team in consultation with the short-listed candidate and the selection panel

members, after taking mutual convenience into account. For field positions,

respective branch/regional heads would undertake this co-ordination.

B. After the final round, if the candidate is selected, the complete set of papers

Personal Data Form, CV, job requisition no., Interview evaluation sheet,

reference check details, educational details, along with the interviewer’s

recommendations and Reference check form should be forwarded by the

recruitment managers to recruitment head. Fitment of the candidate into a grade

and compensation fitment shall be on the assumption of authenticity of the

information provided in the CV/application form.

C. An appropriate formal communication shall be sent to the candidate whose

candidature is not being taken forward, or details of the verbal/telephonic

communications provided to the candidate shall be recorded on the candidates’

papers, by the recruitment team/associated line managers. In the case of

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 interviews taking place at the branch/regional levels, similar noting should be

recorded on the individual candidate’s papers.

Negotiations of the terms and conditions and other pre-appointment formalities

A. In the case of sales-Tied Agency functions, the branch managers will be allowed

to fix the salary and grade of the incoming sales manager, provided the

compensation does not exceed 20% of the candidate’s current cash salary. Any

fitment beyond this norm will need the approval of Head-HR. HR will forward

a worksheet to support the BMs to evaluate the appropriate cash CTC of the

incumbent. For all other functions, the compensation and grade would be fixed

post a discussion between the Head of the Regional HR and the associated

AVP/VP. Any candidate being offered a CTC of more than 4lacs will need the

sign off from HEAD-HR. In appropriate cases, at the discretion of the VP-HR,

a deviation may be referred to the Managing Director, for the MD’s formal

approval.

B. Responsibility for negotiations and finalization of the terms shall rest with the

best Branch Manager/Associated Manager. They may seek the assistance of the

recruitment managers, whenever required. Reference checks process should not

normally be initiated unless the candidate has indicated his firm acceptance of

the offer being made by us.

Reference checks

A. Normal, reference checks should be undertaken with at least one reference. A

second reference check will be done if considered necessary. Responsible

officials from the former employers, academic institutes and/or any other

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 eminent personalities can be considered as appropriate references. Close

relatives and friends cannot be considered as references. Wherever feasible and

considered appropriate, a reference should be made with a senior official of the

candidate’s current employer. In case the candidate is currently un-employed,

reference should be made with the latest employer. The format of reference

check is to be used as a framework for conducting the process.

B. Where the minimum two reference checks are not possible (particularly with the

current employer) or where there is a mixed response from different sources,

the matter may be to the VP-HR for a final decision. Depending on the seniority

and any other considerations about the positions, VP-HR would normally

consult the functional head concerned, before coming to conclusions. Any

candidate whose credentials are doubtful shall not be recruited.

C. In case of recruitment of Management trainees, fresher and life advisors as sales

Managers no reference checks will be required.

Employment offer letter

A. When a recruitment Manager is fully satisfied about the selection of the right

candidate and about completion of all the formalities connected with the

appointment of candidate including requisite documentation, satisfactory

reference check reports and medical fitness, he/she would forward the relevant

papers listed below to the head of recruitment.

Ø Personal Data form

Ø Employee requisition form duly filled by the regional Head/Branch Manager

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Ø Interview evaluation sheet filled by the regional head/Branch

manager/interviewer with his/her comments.

Ø Latest and updated resume of the candidate

Ø Photocopy of the appointment letter of the last employer or latest salary slip.

Ø Employment details.

Ø Two Professional references.

Ø Language Proficiency.

B. Document check list for every grade is as follows:

Ø Authorization Release Form.

Ø Background check Form.

Ø Highest Education certificate.

Ø Highest Education mark sheet.

Ø 1 Month Salary Slip of Current Employer.

Ø 1 Month Salary Slip of Last Employer.

Ø Relieving Letter of last Employment.

Ø Proof of Residence.

Ø 2 Passport Size Photograph.

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C. Regional HR manager will take the signature of Head-HR on the employee

requisition form and forward the papers to the employee service team for

issuance of the offer letter.

D. Employee services team will issue offer letter, to be signed by the National

Recruitment Manager or Chief Manager-HR, and send the same to the

concerned Branch Manager/ HR Manager.

E. It would be the responsibility of the Branch Manager/HR Manager to ensure

that the accepted copy of the offer letter is forwarded to the employee service

team within a week of receipt of the offer letter. Till this letter is issued, the

‘offer’ has not taken place in formal sense. A copy of the offer letter shall be

duly signed and returned to the candidate. Candidate would be expected to fulfil

various joining formalities, which are also formally communicated to him/her

in the form of a checklist that is attached to the letter of offer. The Regional HR

head shall have the overall responsibility and accountability to maintain the

templates of the offer letters and also for drafting of suitable non-standard terms

to any specific candidate.

F. The employee service team will follow up Branch Manager/Regional HR

Manager for the joining of the candidate and will collect all relevant documents

from the candidate including the joining report, before issuing the appointment

letter. The employee service team may enlist the help of the Branch Manager to

ensure that all necessary documents within ten days of the person joining. After

the of all necessary documents, the employee service team will send the

appointment letter to the new joiner.

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 G. Once the documentation is complete for the new joiner (including the accepted

appointment letter), people who may have joined before 20th of the month but

have not been included in the payroll for the month because of delay in receipt

of papers will be given ad-hoc salary advance (up to maximum of 65% of the

pro-rated salary). This advance will be adjusted once the person gets included

in the subsequent month’s payroll.

H. If the person does not submit the relieving letter from the previous organization,

where required to be submitted as per the table given above, within three months

of joining, the employee service manager can put their salary on hold till such

time as the said documents are received.

Key tasks of Regional HR Head

Regional HR Head will have the authority and responsibility to administer/implement

the recruitment and selection process as outlined. An illustrative list of the key deliverables of

these incumbents is listed below.

v Ensuring inductions as per quality, numbers, time and cost consideration of the

company in accordance with the approved manpower budget.

v Creation of appropriate sourcing mechanism along with tracking the performance of

these mechanisms.

v Creation of quarterly and monthly recruitment plans

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v Effective coordination with external parties such as candidates, placement agencies,

consultants, academic/professional institutes and any other including the custody of

the formal agreements, tracking timely payments and adjusted thereto

v Creation of comprehensive and appropriate tools, linkages, documents, templates and

any other mechanisms to ensure smooth execution of the process requirement, along

with timely improvements thereto

v Assistance to user department and line managers including in interviewing/selection

support, scheduling etc.

v Effective internal communication with user departments and line managers including

making the standard recruitment formats and other templates easily available to

such users and notifying the modifications to such formats and templates.

v Creation and maintenance of qualitative information base regarding candidates,

placement agencies, campuses, institutes, and any other employment-market

information.

v Creation and maintenance of appropriate and high-quality MIS for current and future

needs of the organization, including publication/circulation of appropriate reports

there from to the relevant users within the company.

v Monitoring recruitment costs

v Complete documentation for the entire recruitment and selection process for easy and

quick retrieval in a readily auditable format

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v Timely and effective communication with all internal and external parties including

the candidates

v Tracking the progress of the selected candidates including resignation, extensions of

probation periods/training period, etc for the purpose of improvement to

recruitment and selection process.

v Effective coordination with the post recruitment arm of the Human Resource function

v Documentation and creating MIS regarding waiver, deviation, etc and identifying the

key areas for improvement in the formal recruitment and selection process

document.

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 CHAPTER 4

INTRODUCTION:

Corporate Social Responsibility (CSR) is the commitment of companies to provide resources

and support activities focused on enhancing economic and social development. It is the effort

made by companies to improve the living conditions of the local area in which they operate

and the society at large. The activities taken up as part of corporate social responsibility reflect

the intent to create a positive impact on society without seeking any commensurate monetary

benefits.

CSR has been a long-standing commitment of the ICICI Group (the Group) and forms an

integral part of the Group’s activities. ICICI Foundation for Inclusive Growth (ICICI

Foundation) was established in 2008 with a view to significantly expand the ICICI Group’s

activities in the area of CSR. Over the last few years ICICI Foundation has developed

significant projects in specific areas, and has built capabilities for direct project implementation

as opposed to extending financial support to other organizations.

The Company’s objective (either directly or through ICICI Foundation) is too pro-actively

support meaningful socio-economic development in India and enable a larger number of people

to participate in and benefit from India’s economic progress. This is based on the belief that

growth and development are effective only when they result in wider access to opportunities

and benefit a broader section of society.

The Corporate Social Responsibility Policy (CSR Policy) of the Company sets out the

framework guiding the Company’s CSR activities. The Policy also sets out the rules that need

to be adhered to while taking up and implementing CSR activities.

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Scope

The Policy would pertain to all activities undertaken by the Company towards fulfilling its

corporate social responsibility objectives. The Policy would also ensure compliance with

section 135 of the Companies Act, 2013 read with Schedule VII, related rules and circulars (the

Act).

Governance structure

The Corporate Social Responsibility Committee (CSR Committee) is the governing body that

will articulate the scope of CSR activities for the Company and ensure compliance with the

CSR Policy. The CSR Committee would comprise three or more Directors including at least

one independent Director.

The CSR Committee shall:

I. Formulate and recommend to the Board the CSR Policy and any amendments thereto;

II. Indicate to the Board on the activities to be undertaken by the Company as specified in

the Act;

III. Review and recommend the annual CSR plan to the Board;

IV. Monitor the CSR activities and compliance with the CSR policy from time to time; and

V. Review and implement, if required, any other matter related to CSR initiatives.

VI. The Committee shall meet at least once in every financial year.

The Board of Directors shall:

I. Approve the CSR Policy and any amendments thereto based on the recommendations

of the CSR Committee;

II. Approve the CSR activities and annual CSR plan based on the recommendations of the

CSR Committee; and

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III. Review the CSR activities

Operating framework

I. CSR activities will be undertaken in areas identified by the CSR Committee. An annual

CSR plan shall be presented to the CSR Committee and its recommendations shall be

submitted to the Board of Directors of the Company for approval.

II. CSR activities may be undertaken by the Company directly or through any not-for-

profit entities including ICICI Foundation.

III. The Company shall contribute to the ICICI Foundation and such contributions by the

Company to ICICI Foundation will form part of the Company’s CSR outlay.

IV. Activities undertaken by the Company may include projects being implemented

directly by the Company as well as contributions to not-for-profit entities other than

ICICI Foundation for CSR projects that the Company agrees to finance as part of CSR.

Such entities & projects shall be supported after ascertaining the credibility of the

agency and its track record in implementing CSR projects. The entity shall generally

have a track record of three years in implementing such projects.

V. The responsibility for implementation of identified activities/projects shall be as per the

organizational structure approved by the Managing Director & CEO.

VI. The annual plan shall incorporate the following:

a. The prescribed outlay on CSR as per the Act and related rules as amended from

time to time;

b. Key CSR activities proposed to be undertaken during the year, including

analysis of their eligibility for classification as CSR under the Act and related

rules as amended from time to time, their conformity with the CSR Policy and

their implementation schedule;

c. Proposed outlay on each activity;

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 d. Activities to be undertaken by ICICI Foundation and the Company’s

contribution to ICICI Foundation;

e. Activities to be undertaken by the Company directly;

f. Activities to be undertaken by other entities and the Company’s contribution to

such entities;

g. Aggregate proposed outlay and reasons for shortfall, if any, compared to the

prescribed outlay.

VII. The authority to incur expenditure under the above plan shall be as per the approval

given by the Board of Directors of the Company.

VIII. Funds would be disbursed either in tranches or as one-time payment. The terms,

conditions and timing of disbursement would be conditional upon the nature and

requirement of the CSR project or program.

IX. Surplus arising out of CSR projects or programs or activities shall not form part of the

business profit of the Company.

X. In case there is a conflict between the Policy and the Act, the latter shall prevail

Monitoring

The CSR Committee shall ensure a transparent monitoring mechanism for CSR activities.

i. The CSR Committee shall review the progress of CSR activities at least once a year.

ii. The Chief Financial Officer shall be responsible for monitoring expense on CSR

activities with respect to the plan and submission of the same to the CSR Committee

and the Board.

iii. The Board of Directors shall review the progress of CSR activities at least annually or

at such intervals as it may deem fit.

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Disclosure

The Company shall include in its annual report, commencing with the annual report for the

year ending March 31, 2015, the following information on CSR:

a) A description of contents of the CSR policy;

b) An overview of the CSR activities;

c) The composition of the CSR Committee;

d) Average net profit for the preceding three financial years;

e) Prescribed CSR expenditure;

f) Details of amount spent in the prescribed format;

g) Amount unspent, if any, and reasons for not spending the amount;

h) Responsibility statement of the CSR Committee that the implementation and

monitoring of the CSR Policy is in compliance with the CSR objectives and CSR

Policy;

i) Such other matters as may be specified from time to time for inclusion in the annual

report. The above information shall also be displayed on the Company’s website.

Corporate Social Responsibility Activities

The CSR Committee of the Company would consider and approve the projects or programs

that the Company should undertake as CSR in India. The Company could also contribute to the

Prime Minister’s National Relief Fund or any other fund set up by the Central Government for

83
socio-economic development and relief. Any project or program that is exclusively for the

benefit of the Company’s employees would not be considered as CSR.

In terms of Schedule VII of the Act, the Company’s primary focus areas for CSR activities are:

I. Skill development and sustainable livelihood

Enabling India’s youth to gain skills that can provide employment is key to realizing the

potential of India’s demographic dividend and driving inclusive growth. Improving

employability of the youth from lower-income sections of society is hence an important focus

area. The ICICI Academy for Skills (ICICI Group Initiative) has been set up across the country

to provide job-oriented skill training to youth. Several centres have been set up across the

country. In this initiative, ICICI Foundation is also leveraging the skills and training capabilities

of large corporates in developing training modules in their respective domains. ICICI

Foundation is also liaising with corporates and businesses to get the trained youth employed,

through a job portal. The Company shall also offer skills in financial literacy to the trained

youth.

ii. Education

Education represents a critical area of action to realise India’s growth potential as also makes

it inclusive, by enabling children from all sections of society to have access to quality basic

education that equips them for taking up higher education or job-oriented skill training. At the

same time, India’s institutions of higher learning also require investment in capacity building

to support India’s growing and evolving needs and become global centres of excellence. The

Company, either directly or through not-for-profit entities including ICICI Foundation, shall

work with state governments and other not-for-profit organisations to improve the quality of

84
education in government and municipal schools, which account for the vast majority of school-

going children in the country.

iii. Financial Inclusion

The Company believes that to improve the overall economic condition of the low-income

population and to empower them with means to overcome adversities or inequalities, access to

financial services is an important factor. Increasing the participation of the rural population as

well as the urban poor and migrant workers in the economic mainstream and the formal

financial system is imperative for India to leverage its growth potential. The Company’s

initiatives in this area include using various channels like its distributor network, and

leveraging technology to spread awareness about financial services.

iv. Health care

The healthcare challenge in India spans a number of dimensions, including access to affordable

healthcare for the poor; awareness of health issues and available facilities/benefits among the

less privileged segments of society and specific vulnerable sections of the population, and child

malnutrition, which impairs the capacity of a child to lead a healthy and productive life.

Addressing these challenges is essential to achieve the objective of inclusive growth. The

Company shall either directly or tie-up with ICICI Foundation to enhance the availability of

affordable healthcare to low-income households, improve health seeking behaviour among

low- income and vulnerable groups through higher awareness and improve child nutrition. The

Company will support initiatives to make available clean and safe drinking water.

v. Sanitation

Assuring basic hygiene for one and all in India is a major task. Poor sanitation affects the health

of the people of the country. Women are the most affected by lack of proper sanitation. Majority

of the diseases arise due to lack of clean water and sanitation and due to improper solid and

85
liquid waste management. The Company believes in promoting better human health and

improved quality of life among people through improved sanitation measures. The Company

shall either directly or tie-up with ICICI Foundation to improve sanitation levels in various

regions through the schools and/or through participation in ‘Swatch Bharat Mission’ or through

any other program.

vi. Natural Calamities and disasters

The Company will continue to provide support to specific needs during calamities/

disasters/pandemics/epidemics, through financial as well as logistical support which would

also include relief, rehabilitation and reconstruction activities.

vii. Other areas

In addition to the above, the Company shall consider and approve, as needed, support to other

activities falling within the purview of Schedule VII of the Companies Act, 2013 including any

modifications thereof issued by the Ministry of Corporate Affairs from time to time through

circulars/notifications/clarifications.

Employee Engagement and Capacity Building

a) Support employee engagement in CSR activities The Company supports the

involvement of its employees in CSR activities. The Company will encourage

employees to participate in CSR activities of the Company and or ICICI Foundation.

b) Capacity building for corporate social responsibility ICICI Foundation will promote

incubation of expertise for implementing corporate social responsibility initiatives. It

86
 will also work towards providing a platform for organisations engaged in social

initiatives, and discussion and thought leadership on critical challenges to inclusive

growth. The Company will support ICICI Foundation in its initiatives that promote

individual and corporate philanthropy.

I. Policy review:

The Policy shall be reviewed once in two years, or earlier if required.

87
 CHAPTER 5

Based on the analysis the following is the conclusion of the study.

The organization follows the rules and regulation involved in their recruitment and selection

procedure of the organization. However, there is some scope for improvement with regard to

following:

• The recruitment and selection procedure should not be lengthy.

• To some extent a clear picture of required candidates should be made in order to

search for appropriate candidates.

• The recruitment and selection procedure should be impartial.

• The sources of recruitment can be more extensive.

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 BIBLIOGRAPHY

Books
• MOHAN.S, R. ELANGOVAN, Human resource management, regal publications, page
no.-30-37, 64-79,100-110.
• KUMAR NIRMAL, Human resource management and industrial relations, Himalaya
Publishing House, page no.-34-37, 47-54.

Websites

• http://www.moneycontrol.com/stocks/top-companies-in-india/market-capitalisation-
bse/banks-private-sector.html
• http://www.moneycontrol.com/competition/icicibank/comparison/ICI02
• http://www.slideshare.net/JenBarr/recruitment-selection-process-presentation
• http://www.scribd.com/doc/33993225/Recruitment-Process-of-ICICI-Bank
• http://cscjournals.org/csc/manuscript/Journals/IJBRM/volume3/Issue1/IJBRM-64.pdf
• http://www.marketing91.com/swot-analysis-icici-bank/
• http://en.wikipedia.org/wiki/ICICI_Bank
• http://www.theofficialboard.com/org-chart/icici-bank

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