WINTER PROJECT REPORT

On

“A STUDY ON SAVINGS & INVESTMENT PATTERNS OF PEOPLE

IN JAIPUR CITY”

Submitted in partial fulfillment of Master of Business

Administration programme
(2008-10)
Of
U.P. Technical University, Lucknow

Under the Supervision: Submitted by:

Mr. Rahul Gupta Shakeel Ahmad
M.B.A. - IVth Semester
Roll no. 0801570087

Invertis Institute of Management Studies

Bareilly

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 TO WHOM IT MY CONCERN

This is to certify that Mr. SHAKEEL AHMAD student of MBA IVth Semester in our

institute has successfully completed his Winter Project entitled “A STUDY ON

SAVINGS & INVESTMENT PATTERNS OF PEOPLE IN JAIPUR

CITY” for the partial fulfillment of the Master of Business Administration

Degree.

Mr. Shaileswar Gosh Mr. Rahul Gupta

MBA Co-ordinater Project Guide
I.I.M.S. I.I.M.S.

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 PREFACE

As part of this two year programmed leading to Masters Degrees in Business

Administration from Invertis Institute of Management Studies, Bareilly,

affiliated to UPTU (Utter Pradesh Technical University), Lucknow (U.P.)

curriculum of which includes both theoretical orientation in specialized areas.

In fulfillment of this objective, I had observed the organization ICICI Bank

Limited. I made a report on “A STUDY ON SAVINGS & INVESTMENT

PATTERNS OF PEOPLE IN JAIPUR CITY”, a very analytical topic.

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 ACKNOWLEDGEMENT

Our report would not be complete without acknowledging the contribution of

certain special people who have made our internship a great learning
experience.

We express our deep gratitude and thanks to Mr. Shaileshwar Gosh

MBA Co-ordinater I.I.M.S. for his constant guidance. We are also thankful to Mr.
Rahul Gupta, Faculty Guide under whose supervision we were able to do our
project as expected by organization.

We have learnt a lot under his guidance. During our project we were able to learn
a great deal of managerial lessons and principles of Sale & Marketing under his
expert guidance and supervision.

We are also thankful to all members of ICICI Bank Limited who helped us during
our training period.

SHAKEEL AHMAD
MBA
I.I.M.S. BAREILLY

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 CONTENTS

S. No. Particulars Page No.

1 Executive Summary 6
2 Indian Banking Industry 8
Introduction 17
Overview 20
3 History 21
An Analysis of Indian Banking Sector 23
4 Facilities Offered by ICICI Bank 25
5 Objective of Study 38
6 Research Methodology 40
7 A Study on Savings & Investment Patterns 42
Of People in Jaipur City
8 Findings 51
9 Recommendations 53
10 Suggestions 55
11 Limitations 58
12 Swot Analysis 60
13 Conclusion 63
14 Bibliography 65

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6
 EXECUTIVE SUMMARY
“The scaling of one peak gives an impetus to the mountaineer
to conquer other higher peaks.
It opens new doors, new vistas.
It is the beginning of another long voyage on wide seas.
It has given us wings; it is for us to fly to distant horizons.”
It has been a good learning experience to do our project training in the well
known & prestigious organization, ICICI BANK, as a part of MBA program. The
study has been made an attempt to gain better understanding about the working
of the bank and banking industry.

The project “process mapping of HH segment of ICICI BANK ”& “Study of

savings and investment pattern of people in Jaipur”:- Here we studied the
savings and spending habit of people & also the how the various type of
accounts are opened with icici bank.

The main objective of the project was to enhance the efficiency of reporting
system and study savings and investment behaviour of people in the city so that
the organization can target those people who can be the potential customers for
the bank but still untapped.

On the whole it was a wonderful experience & a great learning opportunity. The
complete project was an eye opener which no book taught us. There were times
when we were disheartened & disappointed, but there were times when things
went Right & made us feel proud. Success does not come at once; we have to
start right from the scratch & struggle our way through all hardships with courage
& determination & always remember,
“No one climbs a mountain just by gazing at it,
It is through commitment & action from the present,
That makes it possible".

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 INDIAN BANKING INDUSTRY

The Indian Banking industry, which is governed by the Banking Regulation Act of
India, 1949 can be broadly classified into two major categories, non-scheduled
banks and scheduled banks. Scheduled banks comprise commercial banks and
the co-operative banks. In terms of ownership, commercial banks can be further
grouped into nationalized banks, the State Bank of India and its group banks,
regional rural banks and private sector banks (the old/ new domestic and
foreign). These banks have over 67,000 branches spread across the country.

The first phase of financial reforms resulted in the nationalization of 14 major

banks in 1969 and resulted in a shift from Class banking to Mass banking. This in
turn resulted in a significant growth in the geographical coverage of banks. Every
bank had to earmark a minimum percentage of their loan portfolio to sectors
identified as “priority sectors”. The manufacturing sector also grew during the
1970s in protected environs and the banking sector was a critical source. The
next wave of reforms saw the nationalization of 6 more commercial banks in
1980. Since then the number of scheduled commercial banks increased four-fold
and the number of bank branches increased eight-fold.

After the second phase of financial sector reforms and liberalization of the sector
in the early nineties, the Public Sector Banks (PSB) s found it extremely difficult
to compete with the new private sector banks and the foreign banks. The new
private sector banks first made their appearance after the guidelines permitting
them were issued in January 1993. Eight new private sector banks are presently
in operation. These banks due to their late start have access to state-of-the-art
technology, which in turn helps them to save on manpower costs and provide
better services.

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During the year 2000, the State Bank Of India (SBI) and its 7 associates
accounted for a 25 percent share in deposits and 28.1 percent share in credit.
The 20 nationalized banks accounted for 53.2 percent of the deposits and 47.5
percent of credit during the same period. The share of foreign banks (numbering
42), regional rural banks and other scheduled commercial banks accounted for
5.7 percent, 3.9 percent and 12.2 percent respectively in deposits and 8.41
percent, 3.14 percent and 12.85 percent respectively in credit during the year
2000.

Current Scenario:

The industry is currently in a transition phase. On the one hand, the PSBs, which
are the mainstay of the Indian Banking system are in the process of shedding
their flab in terms of excessive manpower, excessive non Performing Assets
(Npas) and excessive governmental equity, while on the other hand the private
sector banks are consolidating themselves through mergers and acquisitions.

PSBs, which currently account for more than 78 percent of total banking industry
assets are saddled with NPAs (a mind-boggling Rs 830 billion in 2000), falling
revenues from traditional sources, lack of modern technology and a massive
workforce while the new private sector banks are forging ahead and rewriting the
traditional banking business model by way of their sheer innovation and service.
The PSBs are of course currently working out challenging strategies even as 20
percent of their massive employee strength has dwindled in the wake of the
successful Voluntary Retirement Schemes (VRS) schemes.

The private players however cannot match the PSB’s great reach, great size and
access to low cost deposits. Therefore one of the means for them to combat the
PSBs has been through the merger and acquisition (M& A) route. Over the last

9
two years, the industry has witnessed several such instances. For instance, Hdfc
Bank’s merger with Times Bank Icici Bank’s acquisition of ITC Classic, Anagram
Finance and Bank of Madura. Centurion Bank, Indusind Bank, Bank of Punjab,
Vysya Bank are said to be on the lookout. The UTI bank- Global Trust Bank
merger however opened a pandora’s box and brought about the realization that
all was not well in the functioning of many of the private sector banks.

Private sector Banks have pioneered internet banking, phone banking, anywhere
banking, mobile banking, debit cards, Automatic Teller Machines (ATMs) and
combined various other services and integrated them into the mainstream
banking arena, while the PSBs are still grappling with disgruntled employees in
the aftermath of successful VRS schemes. Also, following India’s commitment to
the W To agreement in respect of the services sector, foreign banks, including
both new and the existing ones, have been permitted to open up to 12 branches
a year with effect from 1998-99 as against the earlier stipulation of 8 branches.

Talks of government diluting their equity from 51 percent to 33 percent in

November 2000 has also opened up a opportunity for the takeover of even the
PSBs. The FDI rules being more rationalized in Q1FY02 may also pave the way
for foreign banks taking the M& A route to acquire willing Indian partners.

Meanwhile the economic and corporate sector slowdown has led to an increasing
number of banks focusing on the retail segment. Many of them are also entering
the new vistas of Insurance. Banks with their phenomenal reach and a regular
interface with the retail investor are the best placed to enter into the insurance
sector. Banks in India have been allowed to provide fee-based insurance
services without risk participation, invest in an insurance company for providing
infrastructure and services support and set up of a separate joint-venture
insurance company with risk participation.

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Aggregate Performance of the Banking Industry:

Aggregate deposits of scheduled commercial banks increased at a compounded

annual average growth rate (Cagr) of 17.8 percent during 1969-99, while bank
credit expanded at a Cagr of 16.3 percent per annum. Banks’ investments in
government and other approved securities recorded a Cagr of 18.8 percent per
annum during the same period.

In FY01 the economic slowdown resulted in a Gross Domestic Product (GDP)

growth of only 6.0 percent as against the previous year’s 6.4 percent. The WPI
Index (a measure of inflation) increased by 7.1 percent as against
3.3 percent in FY00. Similarly, money supply (M3) grew by around 16.2 percent
as against 14.6 percent a year ago.

The growth in aggregate deposits of the schedule commercial banks at 15.4

percent in FY01 percent was lower than that of 19.3 percent in the previous year,
while the growth in credit by SCBs slowed down to 15.6 percent in FY01 against
23 percent a year ago.

The industrial slowdown also affected the earnings of listed banks. The net
profits of 20 listed banks dropped by 34.43 percent in the quarter ended March
2001. Net profits grew by 40.75 percent in the first quarter of 2000-2001, but
dropped to 4.56 percent in the fourth quarter of 2000-2001.

On the Capital Adequacy Ratio (CAR) front while most banks managed to fulfill
the norms, it was a feat achieved with its own share of difficulties. The CAR,
which at present is 9.0 percent, is likely to be hiked to 12.0 percent by the year
2004 based on the Basle Committee recommendations. Any bank that wishes to
grow its assets needs to also shore up its capital at the same time so that its
capital as a percentage of the risk-weighted assets is maintained at the stipulated

11
rate. While the IPO route was a much-fancied one in the early ‘90s, the current
scenario doesn’t look too attractive for bank majors.
Consequently, banks have been forced to explore other avenues to shore up
their capital base. While some are wooing foreign partners to add to the capital
others are employing the M& A route. Many are also going in for right issues at
prices considerably lower than the market prices to woo the investors.
Interest Rate Scene:

The two years, post the East Asian crises in 1997-98 saw a climb in the global
interest rates. It was only in the later half of FY01 that the US Fed cut interest
rates. India has however remained more or less insulated. The past 2 years in
our country was characterized by a mounting intention of the Reserve Bank Of
India (RBI) to steadily reduce interest rates resulting in a narrowing differential
between global and domestic rates.

The RBI has been affecting bank rate and CRR cuts at regular intervals to
improve liquidity and reduce rates. The only exception was in July 2000 when the
RBI increased the Cash Reserve Ratio (CRR) to stem the fall in the rupee
against the dollar. The steady fall in the interest rates resulted in squeezed
margins for the banks in general.

Governmental Policy:
After the first phase and second phase of financial reforms, in the 1980s
commercial banks began to function in a highly regulated environment, with
administered interest rate structure, quantitative restrictions on credit flows, high
reserve requirements and reservation of a significant proportion of lendable
resources for the priority and the government sectors. The restrictive regulatory
norms led to the credit rationing for the private sector and the interest rate
controls led to the unproductive use of credit and low levels of investment and
growth. The resultant ‘financial repression’ led to decline in

12
productivity and efficiency and erosion of profitability of the banking sector in
general.
This was when the need to develop a sound commercial banking system was
felt. This was worked out mainly with the help of the recommendations of the
Committee on the Financial System (Chairman: Shri M. Narasimham), 1991.

The resultant financial sector reforms called for interest rate flexibility for banks,
reduction in reserve requirements, and a number of structural measures. Interest
rates have thus been steadily deregulated in the past few years with banks being
free to fix their Prime Lending Rates(PLRs) and deposit rates for most banking
products. Credit market reforms included introduction of new instruments of
credit, changes in the credit delivery system and integration of functional roles of
diverse players, such as, banks, financial institutions and non-banking financial
companies (Nbfcs). Domestic Private Sector Banks were allowed to be set up,
PSBs were allowed to access the markets to shore up their Cars.

Implications Of Some Recent Policy Measures:

The allowing of PSBs to shed manpower and dilution of equity are moves that
will lend greater autonomy to the industry. In order to lend more depth to the
capital markets the RBI had in November 2000 also changed the capital market
exposure norms from 5 percent of bank’s incremental deposits of the previous
year to 5 percent of the bank’s total domestic credit

in the previous year. But this move did not have the desired effect, as in, while
most banks kept away almost completely from the capital markets, a few private
sector banks went overboard and exceeded limits and indulged in dubious stock
market deals. The chances of seeing banks making a comeback to the stock
markets are therefore quite unlikely in the near future.

13
The move to increase Foreign Direct Investment FDI limits to 49 percent from 20
percent during the first quarter of this fiscal came as a welcome announcement
to foreign players wanting to get a foot hold in the Indian Markets by investing in
willing Indian partners who are starved of net worth to meet CAR norms. Ceiling
for FII investment in companies was also increased from 24.0 percent to 49.0
percent and have been included within the ambit of FDI investment.

The abolishment of interest tax of 2.0 percent in budget 2001-02 will help banks
pass on the benefit to the borrowers on new loans leading to reduced costs and
easier lending rates. Banks will also benefit on the existing loans wherever the
interest tax cost element has already been built into the terms of the loan. The
reduction of interest rates on various small savings schemes from 11 percent to
9.5 percent in Budget 2001-02 was a much awaited move for the banking
industry and in keeping with the reducing interest rate scenario; however the
small investor is not very happy with the move. Some

of the not so good measures however like reducing the limit for tax deducted at
source (TDS) on interest income from deposits to Rs 2,500 from the earlier level
of Rs 10,000, in Budget 2001-02, had met with disapproval from the banking
fraternity who feared that the move would prove counterproductive and lead to
increased fragmentation of deposits, increased volumes and transaction costs.
The limit was thankfully partially restored to Rs 5000 at the time of passing the
Finance Bill in the Parliament.

April 2001-Credit Policy Implications:

The rationalization of export credit norms in will bestow greater operational

flexibility on banks, and also reduce the borrowing costs for exporters. Thus this
move could trigger exports growth in the future. Banks can also hope to earn

14
increased revenue with the interest paid by RBI on CRR balances being
increased from 4.0 percent to 6.0 percent.

The stock market scam brought out the unholy nexus between the Cooperative
banks and stockbrokers. In order to usher in greater prudence in their operations,
the RBI has barred Urban Cooperative Banks from financing the stock market
operations and is also in the process of setting up of a new apex supervisory
body for them. Meanwhile the foreign banks have a bone to pick with the RBI.
The RBI had announced that forex loans are not to be calculated as a part of
Tier-1 Capital for drawing up exposure limits to companies effective 1 April 2002.
This will force foreign banks either to infuse fresh capital to maintain the capital
adequacy ratio (CAR) or pare their asset base. Further, the RBI has also sought
to keep foreign competition away from the nascent net banking segment in India
by allowing only Indian banks with a local physical presence, to offer Internet
banking Crystal Gazing On the macro economic front, GDP is expected to grow
by 6.0 to 6.5 percent while the projected expansion in broad money (M3) for
2001-02 is about 14.5 percent. Credit and deposits are both expected to grow by
15-16 percent in FY02. India's foreign exchange reserves should reach US$50.0
billion in FY02 and the Indian rupee should hold steady.

The interest rates are likely to remain stable this fiscal based on an expected
downward trend in inflation rate, sluggish pace of non-oil imports and likelihood
of declining global interest rates. The domestic banking industry is forecasted to
witness a higher degree of mergers and acquisitions in the future. Banks are
likely to opt for the universal banking approach with a stronger retail approach.
Technology and superior customer service will continue to be the imperatives for
success in this industry.

Public Sector banks that imbibe new concepts in banking, turn tech savvy, leaner
and meaner post VRS and obtain more autonomy by keeping governmental

15
stake to the minimum can succeed in effectively taking on the private sector
banks by virtue of their sheer size. Weaker PSU banks are unlikely to survive in
the long run. Consequently, they are likely to be either acquired by stronger
players or will be forced to look out for other strategies to infuse greater capital
and optimize their operations.

Foreign banks are likely to succeed in their niche markets and be the innovators
in terms of technology introduction in the domestic scenario. The outlook for the
private sector banks indeed looks to be more promising vis-à-vis other banks.
While their focused operations, lower but more productive employee force etc will
stand them good, possible acquisitions of PSU banks will definitely give them the
much needed scale of operations and access to lower cost of funds. These
banks will continue to be the early technology adopters in the industry, thus
increasing their efficiencies. Also, they have been amongst the first movers in the
lucrative insurance segment. Already, banks such as Icici Bank and Hdfc Bank
have forged alliances with Prudential Life and Standard Life respectively. This is
one segment that is likely to witness a greater deal of action in the future. In the
near term, the low interest rate scenario is likely to affect the spreads of majors.
This is likely to result in a greater focus on better asset-liability management
procedures. Consequently, only banks that strive hard to increase their share of
fee-based revenues are likely to do better in the future.

16
17
 INTRODUCTION TO ICICI BANK

ICICI Bank is India's second-largest bank. The Bank has a network of about 573
branches and extension counters and over 2,000 ATMs. ICICI Bank was
originally promoted in 1994 by ICICI Limited, an Indian financial institution, and
was its wholly-owned subsidiary.

ICICI was formed in 1955 at the initiative of the World Bank, the Government of
India and representatives of Indian industry. The 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. In 2001, ICICI bank
acquired Bank of Madura Limited.

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, and
Bangladesh and South Africa.

Today, ICICI Bank offers a wide range of banking products and financial services
to corporate and retail customers through a variety of delivery channels and

18
through its specialized subsidiaries and affiliates in the areas of investment
banking, life and non-life insurance, venture capital and asset management.

19
 OVERVIEW
ICICI Bank is India's second-largest bank with total assets of Rs. 3,446.58 billion

(US$ 79 billion) at March 31, 2007 and profit after tax of Rs. 31.10 billion for

fiscal 2007. ICICI Bank is the most valuable bank in India in terms of market

capitalization and is ranked third amongst all the companies listed on the Indian

stock exchanges in terms of free float market capitalization*. The Bank has a

network of about 950 branches and 3,300 ATMs in India and presence in 17

countries. 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 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 Centre and representative offices in the United States, United Arab

Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia.

Our UK subsidiary has established a branch in Belgium.

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

the National Stock Exchange of India Limited and its American Depositary

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

HISTORY
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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, 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

21
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 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 Court of Gujarat at Ahmadabad in March 2002, and

by the High Court of Judicature at Mumbai and the Reserve Bank of India in April

2002. Consequent to the merger, the ICICI group's financing and banking

operations, both wholesale and retail, have been integrated in a single entity.

AN ANALYSIS OF INDIAN BANKING SECTOR

22
An analysis of Indian Banking sector including Growth in advances and deposits,
Market share, NPAs, CAR, Exposure norms, Retail Banking Initiatives and Major
Players.

The Reserve Bank of India (RBI), as the central bank of the country, closely
monitors developments in the whole financial sector.

The banking sector is dominated by Scheduled Commercial Banks (SCBs). As at

end-March 2002, there were 296 Commercial banks operating in India. This
included 27 Public Sector Banks (PSBs), 31 Private, 42 Foreign and 196
Regional Rural Banks. Also, there were 67 scheduled co-operative banks
consisting of 51 scheduled urban co-operative banks and 16 scheduled state co-
operative banks.

Scheduled commercial banks touched, on the deposit front, a growth of 14% as

against 18% registered in the previous year. And on advances, the growth was
14.5%against 17.3 % of the earlier year.

State Bank of India is still the largest bank in India with the market share of 20%.
Icici and its two subsidiaries merged with Icici Bank, leading creating the second
largest bank in India with a balance sheet size of Rs1040bn.

Higher provisioning norms, tighter asset classification norms, dispensing with the
concept of ‘past due’ for recognition of NPAs, lowering of ceiling on exposure to a
single borrower and group exposure etc., are among the important measures in
order to improve the banking Sector.

A minimum stipulated Capital Adequacy Ratio (CAR) was introduced to

strengthen the ability of banks to absorb losses and the ratio has subsequently

23
been raised from 8% to 9%. It is proposed to hike the CAR to 12% by 2004
based on the Basle Committee recommendations.

Retail Banking is the new mantra in the banking sector. The home loans alone
account for nearly two-third of the total retail portfolio of the bank. According to
one estimate, the retail segment is expected to grow at 30-40% in the coming
years.

Net banking, phone banking, mobile banking, ATMs and bill payments are the
new buzz words that banks are using to lure customers.

With a view to provide an institutional mechanism for sharing of information on

borrowers/ potential borrowers by banks and Financial Institutions, the Credit
Information Bureau (India) Ltd. (Cibil) was set up in August 2000. The Bureau
provides a framework for collecting, processing and sharing credit information on
borrowers of credit institutions. SBI and Hdfc are the promoters of the Cibil.

The RBI is now planning to transfer of its stakes in the SBI, NHB and National
Bank for Agricultural and Rural Development to the private players. Also, the
Government has sought to lower its holding in PSBs to a minimum of 33 per cent
of total capital by allowing them to raise capital from the market.
Banks are free to acquire shares, convertible debentures of corporates and units
of equity-oriented mutual funds, subject to a ceiling of 5% of the total outstanding
advances (including Commercial Paper) as on March 31 of the previous year.

The finance ministry spelt out structure of the government-sponsored ARC called
the Asset Reconstruction Company (India) Limited (Arcil), this pilot project of the
ministry would pave way for smoother functioning of the credit market in the
country. The Government will hold 49% stake and private players will hold the
rest 51% - the majority being held by Icici Bank (24.5%).

24
 FACILITIES OFFERED BY 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 its customer a power packed Savings Account with a host of
convenient features and banking channels to transact through. So now one can
bank at his convenience, without the stress of waiting in queues.

Bank understand that as one reaches the age to retire, one has certain concerns
whether his hard earned money is safe and secure … whether his investments
gives him the kind of returns that he need. That's why ICICI Bank has 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 ICICI Bank
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.

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. ThroughICICI Bank Recurring Deposit you can invest small amounts of

25
money every month that ends up with a large saving on maturity. So you enjoy
twin advantages- affordability and higher earnings.
Easy receive account is a unique account that caters to the domestic banking
needs while offering additional benefits for remittances received in the account.

ICICI Bank offers a power packed Savings Account with a host of convenient
features and banking channels to transact through. So one can now bank at own
convenience, without the stress of waiting in queues.

26
 PROCESS MAPPING OF HOUSEHOLD
SEGMENT UNDER RETAIL LIABILITY
GROUP OF ICICI BANK

CONTENTS:

A: Hierarchy of HH segment

B: Working of HH segment

C: Reporting

D: Products

E: Findings

F: Recommendations

G: Suggestions

27
A: HIERARCHY OF HH SEGMENT

Regional Sales Manager

Regional Head

Regional Head (Sales)

Area Sales Manager

Sales Officers

Marketing Research Executives

&
Feet On Street

28
B: WORKING OF HH SEGMENT

Starting from the very base of the ladder. MRE’s &FOS’s.They generate leads
through various activities under Lead Acquisition Programme.

They go to public places such as malls, parks ,cinema halls ,markets, door to
door, through canopies, at bank premises and ATM’s.They interact with people
and explain them the facilities offered by ICICI Bank and convince them to open
their savings account and fix their deposits with ICICI Bank.

After convincing people they proceed with documentation work. Under

documentation process they ask the customer to give their identity and address
proofs, a photograph, a checque of any other bank of value Rs.10,000 or
Rs.10,000 in cash. An instant kit is issued to the customer carrying an ATM-cum-
Debit Card, its password, net banking password and a checque book.

After this the form goes through various steps and then the account is activated
within a period of 4 to 7 working days. The various steps through which the form
undergoes are as follows:

29
Account Opening Procedure:

CUSTOMER

SALES EXECUTIVE

BACK OFFICE

ASM

REGIONAL OFFICE

REGIONAL PROCESSING CENTRE

DOCUMENTATION VERIFICATION UNIT

RISK CONTROL
UNIT

MODIFICATION
REJECT DEPARTMENT

SCANNING

ACCOUNT OPENING

30
 The sales executive collects the filled form from the customer & sends it to
the back office. There the ASM approves the form with his signature and then the
form is sent to the Regional office. From here it is sent to the Regional
Processing Centre. After this the form is sent for final verification at DVU i.e.
Document Verification Unit. If every thing is found in order then the form is sent
to the Modification Department and if in case of doubt it is sent to RCU i.e. Risk
Control Unit.

At RCU the form is verified and if found any discrepancy the form is rejected
and if every thing is found in order it is sent to Modification Department. From
Modification Department the form is sent for scanning and then the account is
activated within a period of 4 to 7 working days.

31
 C: REPORTING

In HH Segment every one reports to their immediate bosses, MRE’s to SE’s,

SE’s to ASM, ASM to RSM & so on.

Sales Executive:
Executives are the team leaders who have minimum 5 & maximum 10 MRE’s in
their team & responsible for handling team & working. They allocate the work to
MRE’s. Only SE’s are authorized to issue instant kits to the customers. The
target assigned lies on the shoulders of SE’s which they achieve with their
MRE’s.

Area Sales Manager:

Area Sales Manager is the head of all SE’s in their respected arias. Allocate
the work & target to SE’s &they are responsible to manage the sales work of their
area.
Regional Sales Manager:
Regional Sales Manager is the head of HH Segment of a region. He has the
complete authority & responsibility of handling sales work of HH Segment in a
particular region.

32
 D: PRODUCTS

SAVINGS ACCOUNTS FIX

DEPOSITS

HNI GAA05 HHB

HH-1 HH-2 YOUNG STAR

ACCOUNT

TAX SAVING NORMAL

FD’s FD’s

HNI (HIGH NETWORK INDIVIDUALS) A/C’s

Features: -
1. Account is opened with an initial amount of Rs.5, 00,000.
2. It’s a non-maintenance account.
3. It’s a status account in which customer gets personnel banking facility.
(The customer need not to wait in a queue for his work. The personnel
banking staff attends the customer. )
4. Customer is provided with at par checque book.
5. ATM card with a photo.
6. Gold debit card which is internationally valid.
7. If the customer is maintaining high balance in his account, he can
withdraw foreign currency if he is abroad.
8. Withdrawal limit of one lakh Rs. Per day.
9. He can use any banks atm free of cost.
10. Locker facility with only 50% of fee.
11. Mobile identification.
33
 12. No commission on foreign exchange.

HH-1(GOLD PREVILAGE)A/C:-

Features: -
1. Account is opened with an initial amount of Rs.1,00,000.
2. We can avail zero balance account for 1 year.
3. Customer is provided with at par checque book.
4. Gold ATM-cum-Debit card.
5. Withdrawal limit of Rs.50, 000.
6. Gold bank ID card.

HH-2(SILVER PREVILAGE)A/C:-

Features:-
1. Account is opened with an initial amount of Rs.50,000.
2. We can avail zero balance account for 1 year.
3. Customer is provided with at par checque book.
4. Silver ATM-cum-Debit card.
5. Withdrawal limit of Rs.50,000.
6. Silver bank ID card.

HHB (HOUSE HOLD BLUE)A/C:-

This account can be availed by fixing deposits of minimum Rs.25,000 and a
checque of Rs.2200 or Rs. 2200 in cash. This is a zero balance account and is
valid only till period of fix deposit.

34
GAA05 (GENERAL ACCOUNT WITH AN AVERAGE OF 5,000):-

Features:-
1. Account is opened with an initial amount of Rs.10,000.
2. Customer is provided on spot with an instant kit.
3. Withdrawal limit is of Rs.35, 000.

YOUNG STAR ACCOUNT:-

This account is opened for a minor child. This requires a checque of Rs.2500 of
the guardian of the child, birth certificate issued by any hospital. The withdrawal
limit is of Rs. 1000 per day.

E: FINDINGS

1. Each MRE is given a period of two months to understand the working and
for these two months they are given a fix subsidy.

2. ICICI Bank have most active channel in whole banking sector in Jaipur
territory.

3. The target set for each SE is sometimes difficult to achieve because it is

not set in accordance with the number of team members.

4. Lack of information available with MRE’s which hampers the lead

conversion rate.

5. Inadequate supervision and motivation by the bosses of MRE’s.

35
 6. Breakdown in communication in the whole channel working for the HH
segment.

7. Absence of impressive personality of MRE’s does hampers the bank

image.

8. There are complaints by the people on unwanted calls form ICICI Bank,
which irritate them and thus hamper the lead acquisition programmed.

F: RECOMMENDATIONS:-

1. Today it is not just the sales force or staff; it is the sales team working
together to achieve those important goals of the company. Yes, goal
setting is one of the secrets but many sales people needs to improve
their skills in achieving set goals and objectives.

2. Communication gap between the channel of HH segment should be

reduced so that the heads can personally motivate their subordinates
and can solve their problems.

3. There should be equal number of MRE’s under each team.

4. Recruitment of MRE’s should be revived at regular interval of time.

36
 G: SUGGESTIONS:-

1. The bank can improve its lead acquisition programme by introducing an offer
that if an existing customer brings in an account of any of the referent the
existing customer will be benefited in the either ways:-

a. The incentive which is given to MRE’s will be credited in the customer’s

account, OR

b. The depositing limit of out of state could be increased in respect to the account
opening amount, OR

c. The facility of withdrawing from any other’s bank ATM without any charges
could be given for a limited number of time.

2. MRE’s should be recruited after a proper interview & personality test.

3. Training to the MRE’s should be given on a real life situation basis so that
they don’t face problems in field.

4. MRE’s should always meet the customer with a warm smile to impress
them and not under any pressure of getting an account as the MRE’s of
international banks do.

37
OBJECTIVES OF STUDY

38
Broad objective

To find out the sales potential for HH segment of ICICI Bank in Jaipur city.

Specific objectives

1. To understand the working of Household segment.

2. To enhance the efficiency of reporting system of house hold segment.

3. To suggest appropriate strategies to bring accounts & FD’s for the bank
which can boost up their sales.

4. To identify strength and weaknesses of ICICI Bank.

39
RESEARCH METHODOLOGY
40
STUDY DESIGN

The proposed research is a Survey, as it covered some part of the city, under
which various classes (occupation, income & savings) of the people were
discussed.

Five areas of the city have been covered.

SAMPLE SIZE

500 people

AREAS COVERED

Mansarovar, Shyam Nagar, Jawahar Nagar, M.I. Road, Raja Park.

DATA SOURCE

Secondary Data:
Data was collected through company’s website, Magazines and Internet.

Sampling Technique:
Convenient sampling which represented the population.

Tools used:
Percentage method
Data representation through pie charts.

41
 A STUDY ON SAVINGS & INVESTMENT PATTERNS OF
PEOPLE IN JAIPUR CITY

The areas that form the part of the study were:-

SHYAM NAGAR
MANSAROVAR
JAWAHAR NAGAR
RAJAPARK
M.I. ROAD

Under our survey we have tried to analyse the savings and investment patterns
of people in these areas, which constituted the part of our study. We have
studied the various income group people and their saving and investment
behaviors.
The benefit of our study will be that we will be able to find the people who could
be the future customer of ICICI Bank as they fulfill the criteria account opening in
the bank. Moreover we could analyse the opinion of people about ICICI Bank and
their inclination towards their association with the brand ICICI.

The tenure of our survey was of 15 days and during this period we came to know
about the comments and commends of customers of ICICI and other people
about the bank.

42
Some of the facts we came through, during our study are as follows:-

1. Occupational pattern of people in the Jaipur city

8% 3%
11% 32% BUSINESS

SERVICE

HOUSEWIVES

RETIRED
PERSONNELS
46%
OTHERS

The above chart shows that the major population in the surveyed areas
comprises of service class people followed by business class, housewives,
retired personals, others (including students).

2. Monthly income in Rs. 000(approximate) of people in the city

43
 37.50%

26.50% 15.50%
18% 2.50%

0 to 5 5 to 10 10 to 20 20 to 50 50 and above

The chart clearly depicts that maximum number of people in the city earn
between 10,000 to 20,000, followed by the income group of 5,000 to 10,000 , 0 to
5,000 , 20,000 to 50,000 and more than 50,000 of monthly income. These figures
have been derived from the people who own accounts in any bank excluding the
category others which do include students too.

3. Monthly savings in RS.000 (approximate) of people in the city

44
 12% 1%
21.50%
0 to 1.5

1.5 to 5

5 to 10

10 to 20
39%
26.50% 20 and above

From the chart we analyze that the majority of population saves between Rs.5,
000 to 10,000 monthly. The other categories follow as Rs. 1500 to 5,000, Rs. 0 to
1500, and Rs. 10,000 to 20,000 and finally Rs. 20,000 and above. This indicates
that nearly 52% people have the status of maintaining a handsome amount in
their account, so these people might be the customer or potential customers for
the ICICI Bank.

4. The preferred mode of investment of the people in the city

45
 savings a/c
10.50% 0% FD's
14% 38.50% Share Market

Own Business

Mutual Funds
11%
Real Estate
9.50% 18% Commodity
exchange

From the above chart one can easily analyse that maximum number of people
preferred to invest in savings account, the second choice of the people is fixed
deposits followed by investment in mutual funds, own business, real estate,
share market and none chose to invest in the commodity exchange.

5. Market share of various banks under HH segment in Jaipur city

46
 SBI
16%
31% ICICI
11%
HDFC

PNB

UTI
9.50%
OTHERS
8.50% 24%

Above diagram shows that SBI group is the market leader in HH segment
reason being the oldest bank and have good customer base and its working is
better than other government banks. It has core banking facility in every branch
and providing largest number of branches and ATMs. Then it is followed by
ICICI Bank, then comes other banks excluding above mentioned banks, then
UTI, PNB and finally HDFC Bank.

6. The preferred bank of people in Jaipur city while fixing their deposits

47
 SBI
32% 31%
ICICI

PNB

UTI

HDFC
3.50%
OTHERS
6% 18.50%
9%

In Jaipur city people prefer to fix their deposits in government bank like SBI,
BOB, CO-OPERATIVE, SOCIETIES, and POST OFFICES because of their
conception of security of their funds in government banks.

In Jaipur SBI is leading the race, second stands ICICI because of its brand name
and facilities followed by PNB, UTI, and HDFC.

7. The consideration of people while fixing deposits

48
 8.50% 22%
interest rates

11.50% brand name

schemes &
offers
pvt. OR govt.
bank
57%

The above chart clearly represents that interest rate is the main criterion that the
people in the city considers while fixing deposits.

The next preferred criteria the schemes & offers that the bank provides followed
by the criteria that whether the bank is the private or government. The last
criterion which comes under the consideration of the people is the brand name of
the bank.

8. The source of information about the schemes, new plans, policies

offered by the bank.

49
 45%
new spaper

bank premises

personnel prom otion

television
2.50%
4%
FM
6% 27.50%
w ord of mouth
15%

The newspaper is the major source of information for the people about the
schemes, new plans, policies offered by the bank.

The next source from where people derive the information is from the bank
premises followed by the personnel promotions, televisions, FM and word of
mouth.

50
51
 FINDINGS

1. Majority of people surveyed complained about the minimum balance they

need to maintain in general account at ICICI Bank is high as compared to
other banks.

2. The initial amount required for account opening is also high when
compared with other banks.

3. Some of the people commented at the rush which they face at ICICI Bank.

4. Many people commended the unique facility of 8 to 8 banking offered by

ICICI Bank.

5. People also appreciate the facility of ANYWHERE banking provided by

ICICI Bank.

6. Second largest number of ATM’s in the Jaipur city.

7. No other bank other than ICICI bank has the provision of opening an
account with cash. All banks require a checque of other bank for account
opening.

8. “ICICI Bank does not has any provision for Students account”, it was a
complaint of many students who were surveyed

9. ICICI Bank has more satisfied customer as compared to other banks in

context of facilities offered by the banks in Jaipur city.

52
53
 RECOMMENDATIONS

1. Make the criteria of minimum balance maintenance flexible if the bank has
to increase the penetration in the market.

2. Ensure proper handling of rush in the bank because people complain

about the bank that bank don’t have the counters in accordance to the
rush.

3. Reduce the minimum account opening amount in comparison to other

private bank which are providing same level of facilities.

4. Make your customer aware of the charges at the time of account opening
because the later person blames the bank for the so called HIDDEN
charges which spoils its brand name.

5. Make people aware about the cumulative interest policy on FD’s of ICICI
bank.

54
 SUGGESTIONS

No matter how much perfect a product or an institution can be but there is always
a place for innovation and suggestions. Thus we have tried to suggest some
ways by which ICICI bank can be benefited in occupying a central position in the
minds of people in Jaipur city.

Some of our suggestions are:-

55
1. ICICI bank can innovate its silver account by introduces an account with
an account opening amount of Rs. 50,000 and minimum balance
maintaining criteria of Rs. 10,000 to those customer who frequently
withdraw money. There should be no withdrawal limit or increased limit,
say Rs. 1, 00,000 per day. It will benefit the bank to tap those people who
invest in share market, mutual funds, real estates.

2. Convert silver account in the above mentioned account because it diverts

the mind of people from opening Gold account as all the facilities offered
by Silver account are same as that of Gold account except the status.

3. Increase the number of branches and extension counters operating in the

Jaipur city.

4. Introduce SUNDAY BANKING.

5. Introduce a provision for the students account as Jaipur is turning to an

education hub.

6. The bank can introduce a scheme that if a customer fixes deposit of more
than Rs. 5, 00,000 he will be given permanent general account.
7. The bank can contact those service class people whose company or
employer are not providing salary account of ICICI Bank to open savings
account.

8. Target the housewives for savings account ( It is so because business

class people are more inclined towards current account and service class
people towards salary account) by increasing advertisement on FM.

56
9. If any general account holder is doing good transaction in his account
regularly then he should be provided with some extra facility or his
account should be converted in any status account.

10. Increase the promotional activities by placing hoardings, LED’s

advertisement boards at traffic signals and public places.

11. Introduce an account for students with amount of Rs. 1,500 with minimum
maintaining balance of Rs.1000 and do not provide them checque book,
and provide the withdrawal facility of Rs. 5,000 per day from ATM.

57
58
 LIMITATION OF THE STUDY

Every report has its own limitations, due to which degree of accuracy gets
disturbed. Study done by us also barred these limitations; -

1. Time was a great constraint due to which limited sample size could be
surveyed.

2. People’s opinion sometime may be biased.

3. Few respondents did not understand the importance of the overall study
and thereby provided vague and not well thought answers.

Limitation on number of areas to be covered had to be made due to time

limitations.

59
60
 STRENGTHS

1. Excellent facilities, offers and schemes to its customers in comparison to

its competitors.

2. Employees possess good communication skills.

3. In ICICI Bank the working process is faster than any other bank.

4. Only ICICI Bank provides the TOKEN facility, which facilitates the
customers in the way, that they need not to stand in the queue to wait for
their chance.

5. 8 to 8 banking facility a unique feature.

6. Anywhere banking facility.

7. Second largest number of ATM’s in Jaipur city after SBI Bank

WEAKNESSES:-

1. Lots of charges of which the customers are unaware.

2. No separate counter of cash deposits.

3. Less number of branches operating in the city.

61
OPPORTUNITIES:-

1. Target housewives & ladies of high earning class running their beauty
parlours and boutiques.

2. Nearly 55% people are having their approximately monthly income above
Rs.10, 000 who can be targeted for opening savings accounts with ICICI
Bank.

3. Target the students who can be potential customers as the students

account could be converted into general account after the completion of
their studies.

THREATS:-

1. Entrance of some international, MNC Banks such as DCB and YES Bank
in Jaipur region.

2. Other private banks and some government bank s are also providing
almost the same level of facilities with lower investment.

62
63
 CONCLUSION

1. ICICI Bank is not only a bank, but it is a brand, which is the second player
in Jaipur city.

2. Under the project entitled “ The study of HH segment under RLG of ICICI
Bank” & “ The analysis of savings & investment patterns of people in
Jaipur”

3. Segment we have studied that how a saving account is opened in ICICI

Bank, its processes, loopholes and thus suggested the ways by which the
bank can improve the working of HH segment.

4. Under the second heading we studied the savings and investment

patterns of people in Jaipur city, through survey we got an idea of how
many people fulfills the criteria of opening a saving account in the city and
still are untapped.

5. We suggested various suggestions and recommendations by which the

bank will be benefited

6. Strengthening the bonding between the bank and customers, &

establishing new relationship with the potential customers.

7. We also analysed strength, weaknesses, opportunities, and threats for the

bank, which will benefit bank to overcome its competitors and the to
become the market leader.

64
 BIBLIOGRAPHY

1. www.icici.org

2. www.google.co.in

3. www.companyprofiles.com

65