homeloans icici

7/29/2019 homeloans icici

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A STUDY ON HOME LOANS OF ICICI BANK

INDIAN BANKING SYSTEM

BANKS IN INDIA

India has a well developed banking system. Most of the banks in

India were founded by Indian entrepreneurs and visionaries in the pre-

independence era to provide financial assistance to traders, agriculturists

and budding Indian industrialists. Indian banks have played a significant

role in the development of Indian economy by inculcating the habit of

saving in Indians and by lending finance to Indian industry.

The commercial banking structure in India consists of: Scheduled

Commercial Banks and Unscheduled Banks. Scheduled commercial

Banks constitute those banks, which have been included in the Second

Schedule of Reserve Bank of India (RBI) Act, 1934.

RBI includes only those banks in this schedule, which satisfy the

criteria laid down vide section 42 (6) (a) of the Act.

Indian banks can be broadly classified into nationalized banks/public

sector banks, private banks and foreign banks.

FOREIGN BANKS IN INDIA

Foreign banks have brought latest technology and latest banking

practices in India. They have helped made Indian Banking system more


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competitive and efficient. Government has come up with a road map for

expansion of foreign banks in India.

The road map has two phases. During the first phase between March

2005 and March 2009, foreign banks may establish a presence by way of

setting up a wholly owned subsidiary (WOS) or conversion of existing

branches into a WOS. The second phase will commence in April 2009

after a review of the experience gained after due consultation with all the

stake holders in the banking sector. The review would examine issues

concerning extension of national treatment to WOS, dilution of stake and

permitting mergers/acquisitions of any private sector banks in India by a

foreignbank.

Major foreign banks in India are:

ABN-AMRO Bank

Abu Dhabi Commercial Bank Ltd.

American Express Bank Ltd

BNP Paribas

Citibank

DBS Bank Ltd

Deutsche Bank

HSBC Ltd

Standard Chartered Bank
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Nationalized Banks in India

Banking System in India is dominated by nationalized banks. The

nationalization of banks in India took place in 1969 by Mrs. Indira

Gandhi the then prime minister. The major objective behindnationalization was to spread banking infrastructure in rural areas and

make available cheap finance to Indian farmers. Fourteen banks were

nationalized in 1969. These Banks were

Before 1969, State Bank of India (SBI) was the only public sector bank in

India. SBI was nationalized in 1955 under the SBI Act of 1955.

The second phase of nationalization of Indian banks took place in

the year 1980. Seven more banks were nationalized with deposits over

200crores.

List of Public Sector Banks in India is as follows:

Allahabad Bank

Andhra Bank

Bank of Baroda

Bank of India

Bank of Maharashtra
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Canara Bank

Central Bank of India

Corporation Bank

Dena Bank

Indian Bank

Indian Overseas Bank

Oriental Bank of Commerce

Punjab and Sind Bank

Punjab National Bank

State Bank of Bikaner & Jaipur

State Bank of Hyderabad

State Bank of India (SBI)

State Bank of Indore

State Bank of Mysore

State Bank of Patiala

State Bank of Saurashtra

State Bank of Travancore

Syndicate Bank

UCO Bank

Union Bank of India
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United Bank of India

Vijaya Bank.

Private Banks in India

All the banks in India were earlier private banks. They were founded

in the pre-independence era to cater to the banking needs of the people.

But after nationalization of banks in 1969 public sector banks came to

occupy dominant role in the banking structure. Private sector banking in

India received a filip in 1994 when Reserve Bank of India encouraged

setting up of private banks as part of its policy of liberalization of the

Indian Banking Industry. Housing Development Finance Corporation

Limited (HDFC) was amongst the first to receive an 'in principle'

approval from the Reserve Bank of India (RBI) to set up a bank in the

private sector.

Private banks have played a major role in the development of Indian

banking industry. They have made banking more efficient and customer

friendly. In the process they have jolted public sector banks out of

complacency and forced them to become more competitive.

Major private banks in India are:

Bank of Rajasthan

Bharat Overseas Bank

Catholic Syrian Bank

Centurion Bank of Punjab
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Dhanalakshmi Bank

Federal Bank

HDFC Bank

ICICI Bank

IDBI Bank

IndusInd Bank

ING Vysya Bank

Jammu & Kashmir Bank

Karnataka Bank

Karur Vysya Bank

Kotak Mahindra Bank

SBI Commercial and International Bank

South Indian Bank

United Western Bank

UTI Bank

YES Bank

If there is one industry that has the stigma of being old and boring, it

would have to be banking; however, a global trend of deregulation has

opened up many new businesses to the banks. Coupling that with

technological developments like Internet banking and ATMs, the banking

industry is obviously trying its hardest to shed its lackluster image.
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COMPANY PROFILE

ICICI Bank is India's second-largest bank with total assets of about

Rs.1,676.59 bn(US$ 38.5 bn) at March 31, 2005 and profit after tax of

Rs. 20.05 bn(US$ 461 mn) for the year ended March 31, 2005 (Rs. 16.37

bn(US$ 376 mn) in fiscal 2004). ICICI Bank has a network of about 573

branches and extension counters and over 2,000 ATMs. ICICI Bank

offers a wide range of banking products and financial services tocorporate and retail customers through a variety of delivery channels and

through its specialised subsidiaries and affiliates in the areas of

investment banking, life and non-life insurance, venture capital and asset

management. ICICI Bank set up its international banking group in fiscal

2002 to cater to the cross border needs of clients and leverage on its

domestic banking strengths to offer products internationally. ICICI Bank

currently has subsidiaries in the United Kingdom, Canada and Russia,

branches in Singapore and Bahrain and representative offices in the

United States, China, United Arab Emirates, Bangladesh and South

Africa.

ICICI Bank's equity shares are listed in India on the Bombay Stock

Exchange and the National Stock Exchange of India Limited and itsAmerican Depositary Receipts (ADRs) are listed on the New York Stock

Exchange (NYSE).


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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, bothdirectly 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.


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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 segments, higher market share in various businesssegments, 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 inJanuary 2002, by the High Court of Gujarat at Ahmedabad in March

2002, and by the High Court of Judicature at Mumbai and the Reserve

Bank of India in April 2002. Consequent to the merger, the ICICI group's

financing and banking operations, both wholesale and retail, have been

integrated in a single entity.

*Free float holding excludes all promoter holdings, strategic

investments and cross holdings among public sector entities.


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Deposits

ICICI Bank offers wide variety of Deposit Products to suit your

requirements. Coupled with convenience of networked branches/ ATMsand facility of E-channels like Internet and Mobile Banking, ICICI Bank

brings banking at your doorstep. Select any of our deposit products and

provide your details online and our representative will contact you for

Account Opening.

ICICI Bank offers you a power packed Savings Account with a host

of convenient features and banking channels to transact through. So now

you can bank at your convenience, without the stress of waiting in

queues.

We understand that as you reach the age to retire, you do have

certain concerns whether your hard earned money is safe and secure

whether your investments give you the kind of returns that you need.

That's why we have an ideal Banking Service for those who are 60 years

and above. The Senior Citizen Services from ICICI Bank has several

advantages that are tailored to bring more convenience and enjoyment in

your life.

It's really important to help children learn the value of finances and

money management at an early age. Banking is a serious business, but we

make banking a pleasure and at the same time children learn how to

manage their personal finances Safety, Flexibility, Liquidity and Returns!

A combination of unbeatable features of the Fixed Deposit from ICICI

Bank.


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When expenses are high, you may not have adequate funds to make

big investments. But simply going ahead without saving for the future is

not an option for you. Through ICICI Bank Recurring Deposit you can

invest small amounts of money every month that ends up with a large

saving on maturity. So you enjoy twin advantages- affordability and

higher earnings.

Investments

At ICICI Bank, we care about all your needs. Along with Deposit

products and Loan offerings, ICICI Bank assists you to manage your

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

You can invest in above products through any of our branches. For

select products ICICI Bank also provides the ease of investing through

electronic channels like ATMs and Internet (ICICIdirect.com).


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About the Bank

INTRODUCTION OF ICICI A PROFILE

Industrial Credit and Investment Corporation of India Limited (ICICI) was

founded by the World Bank, the Government of India and a steering

committee of 5 prominent businessmen. Representatives of private industry

who were in need of long term finance also promoted it. It was incorporated

on January 5, 1955

I have chosen to work on the ICICI Bank that comes under the category ofNew Private Sector Bank.

ICICI Bank is India's second-largest bank with total assets of about Rs.125,

229 crore and a network of over 450 branches and offices and about 1790

ATMs. ICICI Bank offers a wide range of banking products and financial

services to corporate and retail customers through a variety of delivery

channels and through its specialised subsidiaries and affiliates in the areas of

investment banking, life and non-life insurance, venture capital and assetmanagement. ICICI Bank's equity shares are listed in India on stock

exchanges at Kolkata and Vadodara, the Stock Exchange, Mumbai and the

National Stock Exchange of India Limited and its American Depositary

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

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

financial institution, and was its wholly-owned subsidiary


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Background:

ICICI Bank, post its merger with the parent ICICI, has emerged as the second

largest bank in the country after SBI in terms of asset size. The bank is a

professionally managed entity and provides a range of corporate and retail

banking services. ICICI Bank also prides itself as the first universal bank in

the country due to the fact that it provides a wide variety of services.

It is also the first Indian bank to offer Internet banking and also the first to get

listed on the NYSE. At the end of FY03, the bank had an ATM network of over

1,500 ATMs and 540 branches spread across the country.

ICICI Bank, post its merger with parent ICICI, is the second largest bank in

the country with a strong presence in the retail segment. The full effect of the

merger (completed in FY02) was seen in FY03. The bank has been trying to

shed its image as a corporate banker and is aggressively targeting the retail

segment for growth (more so out of compulsion), at the same time reducing its

exposure to the corporate segment.

Post its reverse merger in FY02, ICICI Bank has reoriented its focus towards

the fast growing retail sector (36% of advances). In this process, the bank has

reduced its exposure to the corporate segment both on the assets as well as

the liabilities side.


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. While the bank has aggressively targeted the retail segment off late, it still

has a large exposure to the corporate segment, especially sectors like steel,

chemicals and textiles (38% of total advances). This has led to high level of

NPAs for the bank. In fact, post its merger with ICICI, ICICI Banks NPAs has

risen further. They currently stand at over 4% and, compared to its peers like

HDFC Bank and UTI Bank, this ratio indicates poor performance from ICICI

Bank.

The Indian banking sector is currently in a transition phase. One of the most

significant developments in recent times has been the enactment of the

Securitization Act, which aims to tackle the menacing problem of non-

performing assets (NPAs).

. While public sector banks are in the process of restructuring, private sector

banks are busy consolidating through mergers and acquisitions (the sector

has been recently opened up for foreign investments). With increasing

competition, and the need to adhere to national and international (Basel)

regulations, the need of the hour for Indian banks is to continuously upgrade

their existing systems and processes to meet demands of the future.


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Board Members

Mr. N. Vaghul, Chairman

Mr. Uday M. Chitale

Mr. P.C. Ghosh Dr. Satish C. Jha

Mr. S.B. Mathur

Mr. L. N. Mittal

Mr. Anupam Puri

Mr. Vinod Rai

Mr. Somesh R. Sathe

Mr. P.M. Sinha

Mr. M.K. Sharma Prof. Marti G. Subrahmanyam

Mr. V. Prem Watsa

Mr. K.V. Kamath, Managing Director & Chief Executive Officer

Ms. Lalita D. Gupte, Joint Managing Director

Ms. Kalpana Morparia, Deputy Managing Director

Ms. Chanda Kochhar, Executive Director

Dr. Nachiket Mor, Executive Director


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The company has also created history by becoming the first Indian

Company to list its shares on NYSE (New York Stock Exchange).

Due to the increase competition in the financial markets and fund

based business getting affected by lower margins and higher level of NPAs,the company is trying to get a major share in the retail segment where the

margins are better. This has been made possible through the various

subsidiaries, which the company has floated, and through expansion of the

distribution network.

Over the years, ICICI has gained prominence in most of the segments in

financial sector through its various subsidiaries. Some of the important ones

are:

ICICI Prudential Life Insurance

ICICI Personal Financial Services

ICICI Capital

ICICI InfoTech

ICICI Web Trade

ICICI Securities

ICICI Venture

ICICI Bank


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Present Day ICICI Bank

Earlier ICICI Bank was a wholly owned subsidiary of ICICI. But since

one year the financial institution's counter has been witnessing hectic activity.

Share price has shown smart appreciation from Rs 94 to Rs 86 with a

corresponding surge in volumes. Although there is no overnight change in the

financials, but still ICICI's decided to sell a 15 per cent stake in ICICI Bank to

a "strategic partner".

It is more of a forced decision than a voluntary one. The primary

reason for the step is the new policy of the Reserve Bank of India (RBI). The

policy requires all private sector banks to reduce the promoters' stake to 40

per cent. RBI policy may also force some consolidation in the bankingindustry. Those promoters, who are averse to direct sale of stake, could go for

the merger route. IndusInd Bank, for instance, is planning a reverse merger

with an NBFC in its group. UTI Bank has solved the problem through a

merger with Global Trust Bank and an ADR issue is expected within the next

one year.

A rough calculation indicates that ICICI could get a consideration of

between Rs 450 crore to Rs 500 crore for its 15 per cent stake in the bank.

Gains that will come particularly useful in a year of flat earnings growth, There

has been speculation about whether ICICI is looking for a `strategic partner' or

a portfolio investor. Although ICICI may give a little more than 15 per cent of

its stake in the bank, it will still retain control of the management with a 40 per

cent stake. So the new investor is more likely to be a portfolio investor. ICICI

Bank will continue to be the Commercial banking arm of the ICICI Group.


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The Bank has an authorized capital of Rs. 300 crore (US$ 75.96

million), of which subscribed and paid-up capital is Rs. 165 crore (US$ 41.78

million).

The Bank has three principal stakeholders: shareholders, customers

and employees.

Achievement:-

(i) Asian Bankers Association Award, 1999

(ii) Cyber Corporate of the Year Award

.

(iii) CSI National Award for best IT usage


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COMPARATIVE ANALYSIS OF ICICI BANK AND OTHER PRIVATE

PLAYERS

Broadly the study is designed to highlight the following specific objectives:

(i) To examine the evolution of marketing concept for bank services.

(ii) To study the organizational pattern and performance of bank under

study i.e., ICICI Bank.

(iii) To examine marketing information system in ICICI Bank

(iv)To study the pricing policy of the ICICI Bank.

(v) To study the distribution network of the ICICI Bank.

(vi)To study promotional activities of the ICICI Bank.

(vii) To study the management of men power at ICICI Bank.

(viii) To analyze the procedures adopted by the ICICI Bank.

PARAMETERS TAKEN FOR COMPARISON AND ANALYSIS

1. Branches

2. ATMs

3. Cheque Deposits box

4. Banking Hours

5. Average Balance quarterly

6. Global Debit Card

7. ATM Cash Withdrawal (per day)

8. Statement Charges


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9. 24 Hours Branch Banking

10. 365 Days Banking

11. Phone Banking

12. Automatic Cheque Book Reorder

13. Any Branch Banking

14. National Cleaning

15. Speed Clearing

16. Investment Advisory Services

17. Netbanking

18. Mobile Banking

19. Demat

20. Overdraft

21. Corporate Salary Accounts

22. Priority Banking

23. Relationship Discount

24. Debit Card Charges

25. Doorstep Banking


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S.N

o.

Parameters/B

anks

Standa

rd

charter

ed

ABN

AMRO

HDFC HSBC CITIBA

NK

ICICI

1. Branches 14

(Delhi)

4 (Delhi) 170(Ind

ia)

4(Delhi) 13

(India)

33(Delh

i)

2. ATMs 20 17(Delhi) 450(Ind

ia)

25(Delh

i)

100

(India)

110(Del

hi)

3. Cheque

Deposits box

Yes Yes Yes No Yes Yes

4. Banking Hours 10am

7 pm

10am-

7pm

10am-

4pm

9am-

6pm

10am-

2pm

8am-

8pm5. Average

Balance

quarterly

Savings

Account

(i) Axcess

plus

Rs.

10,000

- - - - -

(ii) Two in

one

Rs.

60,000

- - - - -

(iii) Pariwar Rs.

25,000

- - - - -

(iv) Value

added

- Rs.10000 Rs.500

0

Rs.10.0

00

Rs.1.00

0

Rs.5.00

0

(v) Super

Value

added

Rs.

50,000

Rs.50000 - Rs.50.0

00

Rs.1.00

.000

-

6. Global Debit

Card

Yes No Yes Yes Yes Yes

7. ATM Cash

Withdrawal

(per day)

25,000 Rs.25000 Rs.100

00

Rs.25.0

00

Rs.50.0

00

Rs.15.0

00

8. Statement

Charges

Free

quarterl

y

Free

quarterly

Free

Quarter

ly

Free

Quarter

ly

Free

Quarter

ly

Free

Monthly

9. 24 Hours Yes No No No No No


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Branch

Banking

10. 365 Days

Banking

Yes Yes No No No No

11. Phone

Banking

Yes Yes Yes Yes Yes Yes

12. Automatic

Cheque Book

Reorder

Yes No No No No No

13. Any Branch

Banking


14. National

Cleaning

2-3days 3-4days 7days 4days 7-

14days

5-7days

15. Speed

Clearing

- 6 Hours 6 Hours 6 Hours 6 Hours 6 Hours

16. Investment

Advisory

Services


17. Net banking Yes Yes Yes Yes Yes Yes

18. Mobile

Banking


19. Demat Yes Yes Yes Yes Yes Yes

20. Overdraft Against

shares

Against

shares

Against

shares

Against

FD

- Against

FD

21. Corporate

Salary

Accounts


22. Priority

Banking


23. Relationship

Discount

- 01-025% Upto0.5

%

Upto

0.5%

Upto

0.5%

0.25-

0.5%

24. Debit Card

Charges

150p.a 150p.a 250p.a. 150p.a. 150p.a 99p.a

25. Doorstep

Banking

Yes Yes Yes Yes Yes NA

PRODUCT PORTFOLIO


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CORPORATE BANKING RETAIL BANKING

Corporate Solutions Home Loans

Government Solutions Car & Two Wheeler Loans

Capital Market Services Consumer/Personal Loans

Agriculture Finance Saving & Term Deposit

Structured Finance Salary Account

Project Finance Roaming Current Accounts

Infrastructure Finance Investment Products

Term Loans Private Banking

Working Capital Finance NRI Services

Cash Management Services Demat Services

Trade Finance Services Credit & Debit Cards

International Banking Smart Cards

Treasury Services Bill Payment Services

Corporate Internet Banking E-Cheques

Corporate Advisory Branches

Custodial Services ATMs


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Professional Clearing Internet Banking

Membership Services Phone Banking

PROMOTIONWhat's on offer

Hello ICICI and HDFC brings you a host of services at your fingertips 365 days a

year. A user friendly automated service menu offers you convenient access to your

account coupled with security as, all your transactions are protected by a TPIN - The

Personal password to your account. But if you do need any assistance our officers will

be glad to help you.

Whats more... this facility comes to you totally free of charge! Some of the services

offered are listed below

Savings account :

o Balance Enquiry Statement of account


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o Cheque status enquiry Stop Payment

o Cheque book request

o Dial-a- draft/payorder

o ATM lost card reporting

o Request for a new ATM PIN

Fixed Deposits:

o Opening a Fixed Deposit

o Checking Fixed Deposit details

o Request for TDS statement

Credit Cards:

o Balance and account related inquiries Statement of account

o Dial a draft/payorder

o Lost/Replacement card

o ATM pin re-issue

o Payment instructions (maybe through a letter to the Call Centre)

Others:

o Standing Instructions


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o Complaints and suggestions

o Inquire about any ICICI retail product


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RISK MANAGEMENT

Risk is an integral part of the banking business

and ICICI Bank aims at the delivery of superior

shareholder value by achieving an appropriate

trade-off between risk and returns. ICICI Bank is

exposed to various risks, including credit risk,

market risk and operational risk. Our risk

management strategy is based on a clear

understanding of various risks, disciplined risk-

assessment and measurement procedures and

continuous monitoring. The policies and

procedures established for this purpose are

continuously benchmarked with international best

practices. A comprehensive range of quantitative

and modelling tools developed by a dedicated risk


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analytics team supports the risk management

function at ICICI Bank.

The Risk, Compliance & Audit Group

(RCAG) is responsible for assessment,

management and mitigation of risk in ICICI Bank.

This group, forming a part of the Corporate Centre,

is completely independent of all business

operations and accountable to the Risk and Audit

Committees of the Board of Directors. RCAG is

organised into six sub-groups: Credit Risk

Management Group, Market Risk Group, Credit

Policies Group, Internet Audit Group, Retail Risk

Group and Risk Analytics Group.


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CREDIT RISK

Credit risk is the risk that a borrower is unable to

meet its financial obligations to the lender. ICICI

Bank measures, monitors and manasgers credit risk

for each borrower asnd also at the portfolio level.

ICICI Bank has a standardised credit approval

process, which includes a well-established

procedure of comprehensive credit appraisal and

rating. ICICI Bank has developed internal credit

rating methodologies for rating obligors as well as

for rating. ICICI Bank has developed internal credit

rating methodologies for rating obligors as well as

for product / facilities. The rating factors in

quantitative and qualitative issues and credit

enhancement features specific to the transaction.


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The rating serves as a key input in the sanction as

well as post-sanction credit processes. Credit

rating, a as concept, has been well internalised

within the Bank. The rating for every borrower is

reviewed as least annually and for higher risks

credits and large exposures at shorter intervals.

Sector knowledge has been institutionalized across

ICICI Bank through the availability of sector-

specific information on the Intranet. Industry

knowledge is constantly updated through field

visits, interactions with clients, regulatory bodies

and industry experts. In respect of the retail credit

business, ICICI Bank has a system of centralized

approval of all products and policies and

monitoring of the retail portfolio. We continuously


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refine our retail credit parameters based on

portfolio analytics.


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MARKET RISK

Market risk is the risk of loss resulting from changes in interest rates, foreign

currency exchange rates, equity prices and commodity prices. HDFC Banks exposure

to market risk a function of its trading and asset and liability management activities

and its role as a financial intermediary in customer-related transactions. The objective

of market risk management is to minimize the impact of losses due to market risks on

earning and equity capital.

Market risk policies include Asset-Liability Management (ALM) policies and

policies for the trading portfolio. The Asset-Liability Management Committee

(ALCO) of Board of Directors approves ALM policies. ALCOs role encompasses

stipulating liquidity and interest-rate risk limits, monitoring risk levels by adherence

to set limits, articulating the organizations interest rate view and determining

business strategy in the light of the current and expected business environment. These

sets of policies and processes are articulated in ALM policy. A separate set of policies

for the trading portfolio address issues related to investments in various trading

products and are approved by the Committee of Directors (COD) of the Board. RCAG

exercises independent control over the process of market-risk management and

recommends changes in processes and methodologies for measuring market risk.


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MIDDLE OFFICE GROUP

HDFC Bank has a separate Middle Office Group to monitor both credit and

treasury-related compliance. The Credit Middle Group monitors compliance with

policies and terms of sanction of credit proposals.

The Treasury Middle Office Group monitors the asset-liability position under

the supervision of the ALCO. It also monitors treasury activities, including

determining compliance with various exposure and dealing limits, verifying the

appropriateness and accuracy of various transactions, processing these transactions,

tracking the daily funds position and all treasury related management and regulatory

reporting.

Interest rate risk is measured through the use

of re-pricing gap analysis. Liquidity risk is

measured through gap analysis. HDFC Bank

ensures adequate liquidity at all times through

systematic funds maintenance of liquid investment

as well as by focusing on more stables funding

sources such as retail deposits. HDFC Bank


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mitigates its exposure to exchange rate risk by

stipulating daily stop-loss limits and position limits.

OPERATIONAL RISK

Operational risk can result from a variety of factors, including failure to obtain

proper internal authorization, improperly documented transactions, failure of

operational and information security procedures, computer systems and software or

equipment, fraud, inadequate training and employee errors. We attempt operational

risk by maintaining a comprehensive system of internal controls, establishing systems

and procedures to monitors transactions, maintaining key back-up procedures and

undertaking regular contingency planning. The Middle Office Group monitors

adherence to credit procedures. The International Audit Group undertakes a

comprehensive audit of all business group and other functions, in accordance with a

risk-based audit plan. This plan allocates audit resources based on an assessment of

the operational risks in the various businesses. ICICI Bank has been a pioneer in the

implementation of a risk-based audit methodology in the Indian banking sector. The

International Audit Group conceptualizes and implements improved system of

internal controls to minimize operational risk.


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Finding out their banks and banking needs:-

Among the entire sample, almost 45% companies have account in private

banks, almost 50% in multinational banks and the remaining 5% in the

nationalized banks.

Among the private banks

ICICI has a percentage of 26.8% in account holding as per the given

areas.

HDFC has a percentage of 35.7 % in account holding as per the given

areas.

IDBI has a holding of 9.7% of accounts

Others 27.8%.

ICICI

26.8%

HDFC

35.7%

IDBI

9.7%

Others

27.8%


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About the Likeness of their banks

While conducting the program, the three

standards of likeness drawn are as(a) Excellent (b) Good (c) Bad

ExcellentGood bad

Standard Charterted-27% Standard Chartered-20.9% PNB-40%

HDFC-25% HDFC-14.9% SBI-26.6%

ICICI-18.7% ICICI-13% HSBC-13%

Citi Bank-13% Citi Bank-8.9% HDFC-8%

ABN AMRO-9% ABN AMRO-8.9% IDBI-9%

PNB-4.2% PNB-7.4%

Bank of India-4% Bank of India 5.9%

IDBI-5.6% IDBI-4.4%

American Express-1.7% American Express-2.9%

Canara Bank-1% Canara Bank-1.8%

HSBC-7% HSBC-14.9%

DIFFERECT LOANS PROVIDED BY ICICI BANK

ICICI Bank offers wide variety of Loans Products to suit your

requirements.Coupled with convenience of networked branches/ ATMs and

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facility of E-channels like Internet and Mobile Banking, ICICI Bank brings

banking at your doorstep. Select any of our loan product and provide your

details online and our representative will contact you for getting loans.

ACCOUNTS IN ICICI BANK

ICICI Bank offers wide variety of Deposit Products to suit your

requirements.Coupled with convenience of networked branches/ ATMs and facility of E-

channels like Internet and Mobile Banking, ICICI Bank brings banking at your doorstep.

Select any of our deposit products and provide your details online and our representative

will contact you for Account Opening.

ICICI Bank offers you a power packed Savings Account with a host of convenient

features and banking channels to transact through. So now you can bank at your

convenience, without the stress of waiting in queues.

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Senior Citizen Services

We understand that as you reach the age to retire, you do have certain concerns

whether your hard earned money is safe and secure whether your investments give

you the kind of returns that you need. That's why we have an ideal Banking Service for

those who are 60 years and above. The Senior Citizen Services from ICICI Bank has

several advantages that are tailored to bring more convenience and enjoyment in your

life.

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Young Stars

It's really important to help children learn the value of finances and money management

at an early age. Banking is a serious business, but we make banking a pleasure and at the

same time children learn how to manage their personal finances.

Fixed Deposits

Safety, Flexibility, Liquidity and Returns!!!! A combination of unbeatable features of the

Fixed Deposit from ICICI Bank.

When expenses are high, you may not have adequate funds to make big investments. But

simply going ahead without saving for the future is not an option for you. Through ICICI

Bank Recurring Deposit you can invest small amounts of money every month that ends

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up with a large saving on maturity. So you enjoy twin advantages- affordability and

higher earnings.

DOCUMENTATION

Applicants must satisfy the following documentation requirements:

Identity proof

Proof of communication address

Self cheque (if the applicant is not visiting the branch for account opening)

Identity Proof

(Any one of the following)

Proof of communication address


Original letter of introduction from existing bank

along with KYC cheque of the same Bank

Introduction by an existing and satisfactory

customer as address proof

Driving License Book type or laminated &

embossed

Latest Electricity Bill

Voter Identity Card with KYC cheque for operating

accounts.

Cash can be accepted for Term deposits.

Certificate from the postal office confirming

address of applicant

Employee Identity Card Original Letter from Employer certifying the

residential address of applicant. Signature of

the employee has to be attested on the letter.

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PAN Card Telephone bills from any telephone service

providers and mobile service providers

(KYC cheque mandatory for mobile service

providers)

Defence Dependent's card Consumer gas connection card/book/Pipe

Gas bill (same as electricity bill)

Ex-Service Man Card Certificate from the ward/equivalent rank

officer, maintaining election roll, certifying

address of the applicant

Bar Council/Indian Medical Association

Card/Senior Citizen Card

Registered and valid Lease/ Leave

agreement with copies of utility bills

PIO Booklet for returning NRIs Post Office Savings Pass Book with KYC

cheque

MAPIN card Statement of account or Pass Book of a

scheduled commercial bank with entries of

at least last 3 months alongwith KYC cheque

Premium Receipt from any Banking

company

Certificate by Village Extension Officer

(VEO)/Village Head or equal rank officers

Domicile Certificate with communication

address and photograph

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Accepted as both Identity and Address proof


Passport

Arms License issued by State/Central Government of India authorities

Freedom fighter's pass issued by Ministry of Home affairs, Government of India with photograph

of applicant

Pension payment order/book/Card issued by State/Central Government of India.

Printed Ration Card with Photograph of applicant.

House hold Card with photograph issued by Govt of Andhra Pradesh

ID card with photograph issued by Govt of Jammu and Kashmir

Bank Pass Book with photograph issued by SBI and its subsidiaries or Nationalised Banks

Photo Social Security Card (Smart Card) issued by Central/State Govts or Union territories.

46


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PROJECT

A STUDY ON HOME LOANS WITH

REFFERENCE TO ICICIC BANK

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HOME LOAN PRODUCTS OF ICICI BANK

ICICI Bank home loan provide not just the most competitive interest

rates & best level of service, but also products designed to cater to the

specific needs of consumer. New products / New features in existing

products are introduced based on customer feedback. Choose the ICICI

Bank Home Loan that suits your needs.

Home Loans

Home Loans are provided to individuals to own a residential property.

ICICI Bank offers easy home loans for

First Purchase in ready construction

Under construction property

Purchase in re-sale

Self construction & extension of existing living space

The following are the features of ICICI Bank Home Loans

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Home loan amount can be chosen to suit specific needs

One can avail of a loan up to 85% of Cost Of Property

Conveniently pay off the loan over a period of upto 25 years

It can be availed at the Floating rate of Interest or at the Fixed

rate of Interest or at the combination of both Fixed & Floating rates

Faster repayment as principal repayment in on monthly rest.

Eligibility Norms for Home Loans.

Home Loans can be availed by Resident Indian whether Salaried or Self-

Employed and also by Non- Resident Indian who are Salaried. For resident

Indians the following are the eligibility norms

You must be at least 21 years of age when the loan is

sanctioned.

The loan must terminate before or when you turn 65 years of

age or before retirement, whichever is earlier.

You must be employed or self-employed with a regular source

of income.

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Land Loan

Land loans give an opportunity for individual customer to purchase a

residential plot of land to do self- construction. Thus, customer can invest

now in a plot of land & build in future. The Land loan can be financed only

within municipal limits or in case of direct allotment outside municipal

limits by DA.

Land Loan can be availed by Resident Indian whether Salaried or Self-

Employed and also by Non- Resident Indian.

Home Improvement Loans

Home Improvement Loan is offered to facilitate improvement of a self

owned dwelling unit to existing or new customer. HIL considers a range of

facilities internal or external to the structure without increase in the living

pace. Thus, a customer can add or improve facilities to his dwelling unitwith a loan at Home Equity Loan rate of interest

Home Improvement Loan can be availed by Resident Indian whether

salaried or Self-Employed.

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Office premises loans:

Office Premises Loan can be used for purchase, construction, extension

& also for improvement (at the time of acquisition of office premises). It

creates an opportunity to extend loans to self employed individuals to house

their profession or business giving a permanent address for generating

steady flow of income. The product can also include the estimate of

renovation at the time of purchase of the property. This loan is especially

meant for self-employed professionals like Doctors, Architects etc.

Home Loans can be availed by Resident Indian who are Self-Employed and

also by Non- Resident Indian who are Salaried.

EMI under construction:

EMI Under Construction is offered for structuring a home loan to enable

individuals to commence his EMI in a partly disbursed under construction

project. Commencement of EMI ensures re-payment towards principal

amount leading to savings in interest and faster repayment of the loan. The

EMI paid is as per the sanctioned loan amount and remains constant during

the tenure of the loan. The tenure of the loan keeps moving up with

additional amount being disbursed.

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EMI under Construction can be availed by Resident Indian whether Salaried

or Self-Employed and also by Non- Resident Indian.

Balance transfer:

Balance Transfer is a facility offering the customer a choice to transfer the

outstanding balance of the loan availed for better terms & conditions.

Balance Transfer helps to move from higher rate of interest to lower rate of

interest or increase in loan component as Top up. BT is possible only from

loans taken from HFCs approved by NHB for refinance, Banks or employer

Loans taken from Central or State Government.

Balance Transfer can be availed by Resident Indian whether Salaried or

Self-Employed

Money saver:

Money Saver account is a home loan account with transaction facility. The

account holder can deposit & withdraw to the extend of balance maintained.

On the commencement of EMI the interest will be calculated on the

outstanding debit balance. Thus, the home loan account holder maintaining

large balance in the Money Saver account can save on the interest paid by

faster repayment. This means one can pay less & repay loan faster.

This product can be offered only in case of first and final disbursement

Part disbursement cases cannot be offered this product. MoneySaver would

be available at Floating Rates only & Fixed EMI per lac per month would be

applicable . IT certificate in the case of MoneySaver is not issued.

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Money Saver can be availed by Resident Indian whether Salaried or Self-

Employed

Topup loan:

Top Up Loan can be availed time and again for various personal requirement

based on value of the property. It offers the customer additional funds

against the security of the same property. To avail Top Up loan , the vintage

of atleast six months is required for the loan availed. The basic eligibility

emerges with good repayment track record. The end use letter is essential to

be collected.

The End use of Top Up Loans can be

Furnishing of home

Consumer durable

Childs education

Daughters marriage

Family holiday

Vehicle

Any other personal requirement of the borrower provided it is not

speculative or illegal in nature

This product is applicable to fully disbursed cases with no post-

disbursement document pending

This product is priced more than base home loan rates but lower than any

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personal loan rates .

Top Up Loan can be availed by Resident Indian whether Salaried or Self-

Employed.

Loan on phone:

Loan On Phone is a pre sanctioned loan. Its is based on the existing

relationship of the customer with ICICI Bank. The biggest advantage is that

the customer can get the loan with minimum documentation. Good banking

transactions and repayment records becomes a strength for availing loans in

future.

Loan on Phone can be availed by Resident Indian whether Salaried or Self-

Employed

Home equity loan:

Loan against property gives the owner of residential or commercial premises

to leverage on the value of the property. It offers the ability to unlock funds

gives the advantage of looking at the asset as a source of security bringing

liquidity and retaining ownership.

In case of HEL the property should be self occupied by one of income

considered applicants. The security of the property ensures competitive rate

of interest . The interest component of the EMI paid by SEP / SENP can be

booked as expenses in their P & L

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Home Equity Loans are provided for many personal requirements of the

customer viz.

Marriage

Child Education

Business

Purchase of Property (Where mortgage is not possible)

Improvement of Property

Medical Treatment

Home Equity Loans can be availed by Resident Indian who are Self-

Employed and also by Non- Resident Indian who are Salaried.

Property overdraft:

The overdraft facility from ICICI Bank allows you to borrow money against

your self occupied property. The overdraft facility comes with a multi-city

cheque book and phone banking facility. The customer is charged interest

only for the amount that he withdraws from the account. Whenever he

deposits funds into the account, they go towards reducing the outstanding

balance in the account.

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It offers the following benefits:-

Generating capital against property (R ) or ( C) for business or

personal use

Convenience of Pre - Sanctioned limit and draw as you need

Pay interest on the amount drawn and for days utilized

Convenience of depositing & withdrawing like any Current

Account

Benefit of Cheque Book & Phone banking

Fast Processing and door-step service

Multi-city cheque book and phone banking facility

Property Overdraft can be availed by Resident Indian who are Self-

Employed

Lease rental discounting:

Lease Rental Discounting helps to raise funds against the future expected

rentals of self owned commercial property. The property should be occupied

by the Lessee. Similar to Home Equity Loans, LRD can be provided for any

personal requirements of the customer viz.

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Marriage

Child Education

Business

Purchase of Property (Where mortgage is not possible)

Improvement of Property

Medical Treatment

Lease Rental Discounting can be availed by Resident Indian whether

Salaried or Self-Employed

Loan amount:

Factors affecting your Loan Amount

ICICI home loans bring to you a home loan power-packed with

numerous facilities making it the perfect home finance option for you.

You can get a home loan suited to your needs. The home loan amount

depends on your repayment capability and is restricted to a maximum of

85% of the cost of the property or the cost of construction as applicable.

Repayment capacity takes into consideration factors such as income, age,qualifications, number of dependants, spouse's income, assets, liabilities,

stability, continuity of occupation and savings history.

A number of factors are taken into account when assessing your

repayment capacity. Your income, age, number of dependants,

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qualifications, assets and liabilities, stability/ continuity of your employment

/ business are some of them.

However, there are ways by which you can enhance your eligibility.

If your spouse is earning, put him/her as a co-applicant. The

additional income shall be included to enhance your loan

amount. Incidentally, if there are any co-owners they must

necessarily be co-applicants.

Did you know that your blood relater income can also be

considered for sanctioning the loan on your combined

income? The disbursement of the loan, however, will be done

only after you submit proof of your marriage.

Providing additional security like bonds, fixed deposits and

LIC policies may also help to enhance eligibility.

While there is no need for a guarantor, it could be that having one

might enhance your credibility with us. If so, our loan officer would provide

you with the necessary details.

The final amount to be sanctioned will depend on your repayment capacity.

However, what you ultimately are entitled to will have to conform within the

limits fixed for each loan.

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Also, when the company looks at the total cost, registration charges, transfer

charges and stamp duty costs are included.

Documents required for loan sanction

The leading home loan provider offers attractive interest rates and

unbeatable benefits to ensure that you get the best deal without any hassles.

Keeping your convenience in consideration, we ask you for minimal

mandatory documents for the sanctioning of your home loan.

At ICICI Bank we require the following documents to sanction your

home loan:

Sanction Documents

Duly Completed Application Form

Photograph

Fee cheque

Photo identity proof

Age proof

Signature verification proof

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Residence address proof

Documents for salaried people

Last three months salary slips

Form 16

Bank statements for last 6 months from salary account

Repayment track record of existing loans

Documents specific for Self Employed

Income Tax Return / Computation of Total Income / Auditors

Report / Balance Sheet / Profit & Loss Account certified byChartered Accountant for last 2 years (3 years for Home Equity)(both for business and personal of partners/directors)

Bank Statement for last 6 month from operating account

Repayment Track record of existing loans / Loan closure letter

Board Resolution in case of a company

Proof of existence

Office Address Proof

Photo Identity Proof, Residence Address Proof, Signature

Verification is required to be provided for all the main partners /directors.

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These are the documents required for sanctioning a loan. You may be

asked to submit further legal documents if required by ICICI Bank or its

approved lawyers. Do retain photocopies of all documents being submitted

by you.

Disbursement of your ICICI bank home loan

We disburse the loan amount after you identify and select the property

or home that you are purchasing and submit the requisite legal documents.

While you may be under the impression that the list of documents asked

for is rather extensive, please note that it is for your own good. Each and

every single document asked for will be verified and checked to ensure your

safety.

This may take some time but we want to ensure a clear title and will

complete all the legal and technical verifications to ensure that you have full

rights to your home.

Your loan will be disbursed after you identify and select the property or

home that you are purchasing and on your submission of the requisite legal

documents.

The 230 A Clearance of the seller and / or 37I clearance from the

appropriate income tax authorities (if applicable) is also needed.

On satisfactory completion of the above, on registration of the

conveyance deed and on the investment of your own contribution, the loan

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amount (as warranted by the stage of construction) will be disbursed by

ICICI Bank.

Disbursement Documents

Property documents (as per P&D for respective states and as asked byempanelled lawyers for individual cases)

Facility Agreement

Disbursal Request Form

Cheque Submission

ECS or Auto Debit for ICICI Bank account holders or Post

Dated Cheques for EMI

ECS or Auto Debit for ICICI Bank account holders or Post

Dated Cheques for EMI

Personal Guarantors Documents (PG Form, Photograph,

Identity Proof, Address Proof, Signature Verification andIncome documents, if applicable)

In case of property is owned by a company Memorandum of Entry

Form 8

NOC

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Home Loan Interest Rates for Resident Indians

In your quest of the perfect home loan, ICICI Bank ensures that you

get the best deal, in terms of interest rate and other facilities also, in the most

convenient way. With our varied offering of house loans and home finance,

we give you an opportunity to select the perfect home loan as per your

needs. You can choose from:

Adjustable Rate Home Loan

Fixed Rate Home Loan

Combination of the above two

Step Up Repayment Facility (SURF)

SURF is a variant to enhance the eligibility of a young professionally

qualified home loan customer with out increasing monthly outflow as EMI.

The structuring consider a notional percentage increase in income & offers

options of graded increase in EMI over the tenure of the loan contracted.

The tenure is divided in three parts

Primary being lowest EMI

Secondary

Tertiary being highest EMI

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The following are the features of SURF

Higher eligibility of loan amount with lower EMI

Graded increase in EMI considering future increase in Income

Suited for young professionals.

SURF can be availed by Resident Indian whether Salaried or Self-

Employed Professionals.

Flexible Installment Plan (FLIP)

FLIP is a variant for structuring enhanced eligibility of home loan

applicants with varying tenure of income source. This repayment facility is

given when income is going to reduce after certain time during the loan

tenure due to one of the borrowers retiring before loan maturity. The EMI

payable becomes affordable based on individual income source and also

matching the family cash flow. This variant is offered typically to family

members joining as applicants like husband & wife or father & son with

varying tenure of service Period / Age norm.

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FLIP has the following features

FLIP considers income of two applicants and offers step down

repayment facility

One of the applicants should have service period till the end of

the tenure of the loan

FLIP would have two different EMIs during the tenure of theloan

Normally the first EMI would be based on the combined

income

The second EMI would be smaller & based on the lower

income with longer tenure of the applicant

FLIP can be availed by Resident Indian whether Salaried or Self-

Employed and also by Non- Resident Indian who is Salaried.

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Part Fixed, Part Floating

A product that offers the dual benefit of fixed rate loans as well as floating

rate loans. With this product, a customer can book part of his loan under a

fixed rate plan and the other part under a floating rate plan. Thus, he can

minimize the impact of any adverse changes in the interest rate regimes and

at the same time, avail of any benefits that may come by way of favorable

changes.

Part Fixed, Part Floating can be availed by Resident Indian whether Salaried

or Self-Employed and also by Non- Resident Indian who is Salaried.

SmartFix Home Loans

3 years fixed and floating rate thereafter. A product that offers the

safety of fixed rates plus the advantages of floating rates. The Smart Fix

enables the customer to lock at fixed rate of interest today with the contract

to move to a floating rate on a subsequent date. For the first 3 years you get

a fixed interest rate. From the fourth year, your loan gets switched to the

prevailing floating interest rate. Thus, a customer gets an opportunity to

observe the interest rate movement over a period of time and expects to

benefit in the bargain

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Smart Fix can be availed by Resident Indian whether Salaried or Self-

Employed.

The interest rate on ICICI Bank Home Loans is linked to the ICICI

Bank Floating Reference Rate (FRR)/PLR. As per earlier communication,

FRR/PLR was increased by 1% on Feb 9th 2007. Consequently interest rate

for all existing customers under Adjustable Rate Home Loans (ARHL) also

went up by 1%. Subsequent to this change, as per recent announcement, the

FRR/PLR has been further increased by 1% effective from March 31st

2007.The FRR has gone up from 11.75% to 12.75%& PLR has gone up

from 13.75% to 14.75%. For all the Adjustable Rate Home Loan customers,

both the above changes will be effective from 1st April 2007.

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What is the repayment tenure?

Repayment tenure is the tenure for the number of year for which theloan gets sanctioned. We offer you a wide range of options for the tenure ofthe loan. You can take a home loan for up to 25 years provided you do notreach the age of 65 years or retire within that period

How is the loan repaid?

All loan repayments are done via equated monthly installments (EMI).

What is an EMI?

An EMI refers to an equated monthly installment. It is a fixed amount

which you pay every month towards your loan. It comprises of both,

principal repayment and interest payment.

When does the repayment start?

EMI payments start from the month following the month in which thefull disbursement has been made.

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How is the EMI paid?

The EMI is to be paid every month through post-dated cheques (PDCs)

orElectronic Clearing System (ECS)*. If you are opting for PDCs, then

you will have to provide 36 PDCs upfront. The PDCs are to be dated on the

1st of every month. However, if you receive your salary a few days later, we

provide the flexibility of dating the cheques for the 10th of the month. In

case you have an ICICI Savings account you can also go in for the facility of

Auto Debit.

* ECS facility is available in selected cities only.

What if a PDC bounces?

In the case of a bounced cheque or delayed payment, charges and

outstanding dues will be charged as per the prevailing company policy. You

can replace old PDCs with new ones within 5 - 7 working days.

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What is pre-EMI interest?

In the case of part disbursement of the loan, monthly interest is payable

only on the disbursed amount. This interest is called pre-EMI interest

(PEMI) and is payable monthly till the final disbursement is made, after

which the EMIs would commence.

When do I pay PEMIs?

The first PEMI is payable by cheque by the end of the month in which the

disbursement is made and each subsequent PEMI at the end of every month

till the commencement of EMI. In case you have an ICICI Savings account

you can also go in for the facility of Auto Debit.

Application Process of your Home Loan

Your search for the perfect home loan ends here at ICICI bank

home loan, even before your have found the perfect property.

The moment you decide to buy a home, you can put in your applicationfor a home loan. Yes, you can apply for a home loan even before you have

selected the property.

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The property need not even be in the same city where you are residing.

The only condition being that ICICI Bank has home loan operations in both

the cities.

Should there be a change in your financial status or plans, you can

withdraw your sanction within 6 months of approval of your home loan.

However, we are always ready to assist our customers in the event of

legitimate problems. And, we might reconsider this if we find that there are

satisfactory reasons for the delay.

And, neither would we charge you extra for this delay.

If it is refinancing you are interested in, it is possible within 6 months

from the date of purchase of property.

Insurance Plans for your Home Loan

Introducing exclusive home loan insurance that can provide cover to

your Home loan in the face of any unforeseen event happening to your life.

In case of any of these happenings, your family will have the support of the

insurance cover to pay for the outstanding Home loan, without being

burdened by the loan EMI's.

Key Benefits of HomeSafePlus

No medical checkup

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Comprehensive insurance plan for individual, home and its

contents

Single premium long-term insurance plan

Premium paid for the Critical Illness cover is eligible for tax

benefits u/s 80D of the Income Tax Act

Sum Insured remains constant throughout the policy period

(loan O/S amount to come to bank, rest goes to individual)

Multiple applicants can be covered under the same loan

Simple application form

Key Benefits of HomeAssure/HealthAssure

Life Cover from HomeAssure for the entire home loan tenure

Critical Illness cover from life threatening illnesses like cancer,

coronary artery bypass, heart attack, kidney failure, stroke, majororgan transplant

Special non-medical limits only for ICICI Bank Home Loans

customers

Dual benefit to customers, Life Cover from HomeAssure and

Critical Illness Cover from HealthAssure

Dual tax benefits, Section 80C benefits under HomeAssure,

Section 80D benefits under HealthAssure

Simplified claim procedure

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FINDINGS

1. ICICI Bank having good brand image in the minds of customers.

2. Majority of the people got loans from ICICI Bank only

3. Most of the customers are not aware of the products of ICICI home

loans

4. Some of the customers felt that the interest rates are some what high

5. Some of the customer not having good faith on private banks

6. Most of the people are directly go to bank to apply a home loan

7. Some of the customer of ICICI already benefited through ICICI home

loan products and services

8. Customer awareness is medium about ICICI products.

9. ICICI providing good services to their customers.

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RECOMMENDATIONS

Create awareness: The Company has to take care of awareness

creation about the products and services among the customers.

Charges: The Company has to reduce the mortality and administration

charges.

The process is some what late to sanction a loan.

The company has to reduce their interest rates on home loan products

and services.

The company has to identify the potential customers.

Production promotion strategies should be improved.

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Company should consider the present competition and should act

according to the customer needs.

CONCLUSION

In my study we came to know that many peoples are

interested to take a home loan from ICICI bank to construct

their homes.

Home loans have long period when compare to other personal

loans and other loans. So peoples are confused to take a home

loan.

The interest rates also some what high when compare to other

banks.

Even though the interest rates are high peoples are willing to

take a loan from ICICI bank due to some reasons.

The loan sanction process is low when compare to other

banks.

For disbursement process is also it will take low time when

compare to other banks

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ON THE JOB TRAINING

INTODUCTION

My OJT is promoting ICICI home loan products and services I have

to promote the ICICI bank products and create awareness in the minds of

customers.

And I have to identify the potential customers, who are showing

interest to take home loan.

I have to convert them as ICICI customers. I have to collect all the

required documents to get a home loan from the customers.

I have submit all the documents to our technical team, these are the

people evaluate the property value.

I have to inform to the customers about their loan status.

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OBJECTIVES

The main objective of doing this project is to study the corporate culture

and creating awareness among the customers about home loan products of

ICICI bank. During this student internship program period I have to achieve

some thing which is helpful to the development of myself and some value

addition to the company. Generating business to the company is the main

objective. It gives me good exposure of myself and creating good impression

of corporate mind.

The main objective of this study is to know the Customers perceptions

about home loans of ICICI bank.

Generating good business to the company by promoting and selling

the products of ICICI.

.

To know the ideas of customers about home loan products and

services.

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To get the knowledge about different loan products of ICICI Bank.

Creating awareness of ICICI Bank products in the minds of Walk-in

customers in the bank.

Fixing the appointments with the customers.

Visiting the customers and closing the deal.

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TARGETS/ TASKS

I have to approach the customer with in the bank and out side of the

bank also to promoting the products and services of ICICI. If he gets theinformation about the product I have to take his mobile number and

appointment. After getting the leads I have to submit to the financial

consultants. With the guidance of financial consultants I have to generate

the business.

STRATEGIES

Followed strategies to achieve my Targets

1. Direct marketing

My OJT is promoting the home loan products of ICICI.By adopting

this strategy I can understand the ideas of customers and their investment

habits. If I know the ideas I can create better idea of our products. Direct

approach creates great awareness about the product and we can easily clarify

the doubts of customers.

2. Tele-marketing

This is the one of the strategy I am following to promote the product.

If once I got the phone number of the customer I can easily grab the

customer. Through Tele marketing I can convince the customer.

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3. Relationship marketing

It is also one of the best marketing strategy. Direct approach is only

belongs one customer. Through relationship marketing we can pinch the

product to many persons. If one customer got good faith on us. Then he will

promote the products to his friends and colleagues. It is also one of the best

strategies I am following.

ACHIEVEMENTS

I promoted ICICI Bank home loan products during my SIP period. I

have showing them as monthly wise as follows,

In The Month Of MAY

1st week Training class, for different home loan

products of ICICI

2nd week Training class on documents and

disbursement part

3rd week 4 leads

4th week 3 leads

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In The Month Of JUNE

1st week 6 leads

2nd week 3 leads

3rd week 4 leads

4th week 5 leads

In The Month Of JULY

1st week 5 leads

2nd week 7 leads

3rd week 1 lead

4th

week 6 leads

In The Month Of August

1st week 5 leads

2nd week 2 leads

3rd

week 3 leads4th week 6 leads

LIMITATIONS

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1. The survey was confined to only certain parts of twin cities, which

Included walk-in customers of ICICI Bank and outsiders.

2. We dont have sufficient knowledge to close all the deals.

3. Getting the prospective customers are very time consuming.

4. Time to explain the customer about the product inside branch is less.

5. Time Period of my OJT is one of the Limitation.

LEARNINGS

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Learnings in the on the job training

1) Product knowledge of ICICI home loan products and services

2) The way to improve my communication skills.

3) The way to convince the customers.

4) The way to behave people in corporate world.

5) The way to adopt new strategies to attract customers.

6) The way to convince the people who do not trust private

organizations.

7) How people invest their money in different investment schemes.

.