A

Project Report

On

“The Study on the Different types of Loans offered

by ICICI Bank.”
Submitted to:

As a Partial Fulfillment of the Requirement for the Award of Bachelor of

Business Administration Programme BBA (Class of 2015-2018)

Under the Guidance & Supervision

Of

Prof Surekha Thankur

Faculty Guide
AGBS Hyderabad

Summer Internship Project

Submitted by:
Huzefa Hussain
A30606416048

AMITY GLOBAL BUSINESS SCHOOL

HYDERABAD

1
 AMITY GLOBAL BUSINESS SCHOOL

HYDERABAD

College Certificate

This is to certify that Mr Adarsh Gilada student of Semester

VI Class of BBA 2016-2019 has completed the Summer
Assignment Project titled “A Study on the Comparative
Financial Analysis of Tata Consultancy Services and Infosys”
under my guidance has worked sincerely for the partial
fulfilment of Bachelor of Business Administration for the
year 2016 to 2019 to the best of my knowledge and wish
him/her success for the future endeavours.

Dr. Krishna Reddy

AGBS Hyderabad

Date: - 22-04-2019

Place: - Hyderabad

2
 AMITY GLOBAL BUSINESS SCHOOL

HYDERABAD

DECLARATION

I Huzefa Hussain , Student of Amity Global Business School,

Hyderabad hereby declare that the Project titled “A Study on
the Comparative Financial Analysis of Tata Consultancy
Services and Infosys” is the record of authentic work done
by me for submission of the Summer Assignment Project as a
partial fulfilment and has not been submitted in any other
university or Institute for the award of any other Degree. An
attempt has been made by me to provide all relevant and
important details regarding the topic to support the
theoretical aspect and practical evidence related to the
topic.

Huzefa Hussain - A30606416047

Date:- 22-4-2019

Hyderabad

3
 Acknowledgment

My heartfelt sincere Thanks to Dr P Prasada Rao, Director

General, Amity Global Business School Hyderabad for giving
me this opportunity for doing my project in State Bank of
India.

My sincere & grateful thanks to my Faculty Guide Dr Krishna

Reddy for guiding me throughout my Project.

My sincere thanks to my Family members who stood by me

motivating me to complete my project successfully.

Huzefa Hussain - A30606416047

Date: - 14.2.19

Hyderabad

4
 TABLE OF CONTENTS

Contents Page Nos

1 Executive Summary 7
2 Objectives of the study 9
Research Methodology 10
3
1 Primary Data
2 Secondary Data
3 Sampling Design
4 Data Collection tools/instruments.
5 Limitations of the Study 12
4 Literature Review 13
The Study On The Different types of
loans offered by ICICI Bank -An
Chapter I Introduction. 15

Chapter ICICI Bank—A Profile 22

II
Different types of loans offered and their
Chapter Schemes. 42
III
Chapter Data Analysis and Interpretation 56
IV
Findings, Recommendations or Learnings
Chapter and 79
V Conclusion
ANNEXURE 83
1.Bibliography

2.Websites

5
TITLE OF THE STUDY:
The Study on the different types of loans offered by ICICI Bank.

EXECUTIVE SUMMARY:

One of the primary functions of the commercial bank is ‘lending’. Through lending
commercial banks meet their objective of making profits. The deposits collected from the
public cannot be kept idle. It has to be utilized in order to derive benefits out of it. The
bank collects deposits with the objective of lending and makes profit out of the interest
received and paid. Their main aim is to deal in money and provide for those who need it.
The banker performs the job of lending within the framework of statues governing the
banking business, the government policy and guidelines issued by the authorities of the
country (RBI in India).The basic objective of nationalization of commercial banks was to
provide funds to the neglected sectors like agriculture, tiny industries and other weaker
sections of the society. Today nearly 40% of the total commercial bank advances are the
priority sectors. Greater part of the commercial bank funds are employed in the form of
loans and advances. Loans bring good money to the bank in the form of profit by
charging interest. Lending function of a commercial bank benefitsthe bank in the form of
profit and the one who takes loans enjoy the benefit of money required for their activities.
The wheels of industry cannot run without the bank advances. The bank needs to assess
the condition of industry or trade or any business enterprise while making advances.

Commercial banks are the most important source of short-term capital. The major portion
of working capital loans are provided by commercial banks. They provide a wide variety
of loans tailored to meet the specific requirements of a concern. The different forms in
which the banks normally provide loans and advances are loans and advances are loans,
cash credit, overdrafts, purchasing and discounting of bills.

When a bank makes an advance in lump-sum against some security it is called a loan.
Here, a specified amount is sanctioned by the bank to the customers. The loan amount so
sanctioned is paid to the borrower either in cash or by credit to his account. A certain

6
amount of interest has to be paid by the borrower for the loan that has to be borrowed. A
loan can be repaid in lump-sum or in installements. Commercial banks generally provide
short term loans up to one year for meeting the working capital requirements. But these
days, term loans exceeding one year are also provided by banks. The term loans may be
either medium term or long term loans.

Commercial banks normally provided short term financial assistance to industrial sector.
The assistance provided by them provided by them fulfilled the working capital
requirement of the industrial enterprises. A massive investment in industries during
second plan and after changed the priority of bank lending. The industrial required high
funds for long term financing. The financial institutions failed to meet the increasing
demands of the industries. Then the entry of commercial banks came into existence and
filled the gap between the demand and supply of long term requirements. The banks
started giving term loans to meet the long term needs of the industry. The refinance
scheme of IDBI encouraged more term lending by commercial banks. The commercial
banks are assisting industrial units by granting term loans, subscribing to shares and
debentures of corporate units and underwriting securities issued of these companies.

General Lending Policy in Relation to the business of the borrowers and the purposes for
which the advance is required. In handing a proposal relating to a particular nature of
facility, apart from the general guidelines that have given, the branches should refer to the
detailed instruction as contained in the respective instruction circulars so as to ensure that
all instructions relating to a particular type of advance are compiled with. The bank
sanctions various kinds of clean / unsecured credit facilities as well as secured credit
loans, details of which the security there for and the security documents to be obtained
are elaborately explained in the security documents to be obtained are elaborately
explained in the guide documentation.It is the nature of the business of the borrowers. In
handling a proposal relating to a particular nature of , apart from the general guideline
that have been given, the branches should refer to the detailed instructions as contained in
the respective instruction circulars so as to ensure that all instruction relating to a
particular type of advances are complied with.

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OBJECTIVES OF THE STUDY:

 To assess and understand about the different types of loans offered by ICICI
Bank.

 To understand and enumerate the ways of lending money.

 To study and evaluate the performance of each loan scheme.

 To study the valuation of collateral security method followed by the bank while
lending the loans.

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RESEARCH METHODOLOGY:

This refers to the method of data description. Descriptive research includes surveys and
fact findings enquire of different kinds. The major purpose of descriptive research is
description of the state of affair as it exists at present. In business research we quite often
use the term export facto research for descriptive research studies.
The main characteristics of this method is that the researcher has no control over the
variable, he can only report what has happened or what is happening. Themethod of
research utilised in descriptive research are survey methods of all kinds including
comparative and correlation methods.

A. RESEARCH DESIGN:

Research design here refers to the methods used to collect the required data for
the survey. It is the outline of the total project. It contains the information stating
the objectives of the study, scope of the study methodology of the study, tools and
techniques used for the survey, methods of data collection, limitation of the study
etc. in short research design is the chapter in which the blue print of the whole
project is explained.
The research design includes an outline of the study which was conducted at
ICICI Bank. There are various types of products and a service offered by UBI,
and providing loans to people are one of the important functions of the bank does.
As this research study is mainly based on these schemes, we will discuss more on
the loan schemes provided by ICICI Bank.

9
B.DATA COLLECTION TOOLS:

Data mainly collected from both primary and secondary sources.

1. PRIMARY DATA: Primary data are freshly gathered for a specific
purpose or for a specific research project. Primary data was collected by
way of discussion with company officials. Mainly with bank manager. It
has colled through the interim schedule, discussion and by interacting with
the officials of the organization or therespondents.

2. SECONDARY DATA: Secondary data that were collected through

published materials like pamphlets, company books and from the official
website that is www.unitedbankofindia.com

C. TOOLS AND TECHNIQUES:

Internet/ prominent search engines have been used for collecting the Data,
market watch is also used to some extent for interpretation analysis.

All data collected are carefully classified, tabulated for the purpose of
research and interpreted on the basis of charts and tables.

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D. LIMITATION OF THE STUDY:

1. Confined to one financial institution i.e. ICICI Bank.

2. On account of time constraint whole spectrum of long term lending

practises was not possible.

3. Inaccurate and inadequate information might have resulted to wrong

interpretation.

4. Only a very few no. of respondent were interviewed to get the

information.

5. Accounting information is another constraint.

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LITERATURE REVIEW:

A number of studies related to performance of co-operative banking sector in India have

been conducted. Here, an attempt is being made to provide an overview of various
aspects and issues of this study through the review of existing literature. Some of the
main studies selected for review have been discussed below.
Bhatia (1978), in his study titled, “Banking Structure and Performance − A Case Study
of the Indian Banking System” attempted to analyze the economic performance of Indian
banking system as reflected by its output, price and profitability during the period 1950-
68. He found that profit of the Indian banking system during the said period had an
upward trend. The study suggested deregulation of interest rates to enhance the
profitability of financial institutions and to ensure a competitive banking environment
which would ultimately result in better services.
Kulkarni (1979), in his study titled, “Development Responsibility and Profitability of
Banks” stressed upon social responsibilities of banking sector. He was of the view that
looking for profit maximization only was not true profitability of banks as social benefits
arising out of bank operations cannot be ignored. He observed that while fulfilling the
social responsibility, banks should try to make the basic banking business as successful as
possible, reduce cost, improve banking system and increase the overall profitability.
Markand (1979), in his book titled, “Social Priority Index of Public Sector Banks”
evaluated the performance of public sector banks. With the help of performance index
consisting six quantitative indicators such as branch expansion, priority sector credit, 24
and wage cost, he concluded that the priority sector financing was essential, and
necessary. For better performance in this sector he suggested that lending power should
be delegated to the branch managers.
Kalyankar (1983) in his study titled, “Wilful Default in Loans of Co-operatives”
examined the trends in deposits, share capital, working capital, loans outstanding,
advances, overdues and recoveries at the district level financing institutes.
Socioeconomic factors responsible in projecting and promoting future development in the
operations and approaches of the co-operative credit organizations were also considered
to examine the specific progress made by Central Co-operative Bank of Parbhani District.
The study revealed that the cropping intensity, irrigation facility and working capital of
the societies were the major factors for explaining overdues at primary agricultural credit
societies’ level. The socio-economic factors were not responsible for increasing overdues
at the borrowers’ level, but overdues were mainly mounted due to the non-economic
factors in case of wilful defaulters.
Kurulkar (1983), in his published work on agricultural finance in backward region,
reported glaring defects in the set-up of co-operative credit system. He pointed that out of
the ten sample owners who obtained long- term credit from the co-operative banks, 30%

12
could not secure short- term credit. Lack of short- term or production credit to the farmers
who availed long-term credit resulted in lower output per acre, thereby resulting in
overdues.
Reddy (1985), in his study titled, “Overdues Appraisal and Management in Banking”
analysed the relationship between the lending and recovery of an apex bank. His findings
suggested that the lending and recovery of the apex bank had not 25 been proportionate,
i.e., either the apex bank could not meet the entire credit needs of the primary banks or
the latter could not borrow the funds from the apex bank. The primary banks were
constituted by people not for co-operative services but for their vested interests. With the
help of Coefficient of Variation technique, he proved that there was a wide dispersion in
lending followed by recovery. He finally concluded with the help of t-test that the
association between lending and recovery was not satisfactory.
Chopra (1987), in her book, studied operational efficiency of some selected public
sectors banks. She found the lack of professionalism in banking industry and stressed for
the introduction of scientific management practices to enhance profits and profitability of
public sector banks. She recommended comprehensive management of costs as well as
earning of the banks.
Devadas (1987), in his book titled, “Co-operative Banking and Economic Development”
studied the role of Assam Co-operative Apex Bank Ltd. in economy of the State. He
found that apart from working as a commercial bank it had to discharge three other
functions, i.e., to finance primary credit societies, to act as banking centre for primary
societies, and to undertake supervision of primary societies. He found that bank had not
been able to achieve much in these three fields due to lack of adequate support from
government of the state.
Ramachandaran (1992), in his paper titled, “Profit Planning as a Management Tool for
Profit Maximisation” tried to analyse profitability position of the banks. Increasing
emphasis on goals, increase in establishment cost, NPAs, amount locked in sick units,
unfavourable deposit mix, compliance to statutory requirements were some reasons, 26
identified by him, for declining profitability. He suggested the following measures to
redress the said problem:
 Diversification of business,
 Interest to be paid by RBI on CRR/SLR balances,
 Opting utilisation of scarce resources by asset management,
 Better funds management,
 Management of non-performing advances,
 Professionalisation of bank management,
 Identification of loss centres,
 Better role of government, and
 Upgradation of skills and mechanism.

13
Chapter – I

14
The Study On The Different Types Of Loans Offered By ICICI Bank –
AN INTRODUCTION.

MEANING OF BANK

Banking is one of the most important sectors of business and finance that assists the
world of commerce to keep on running. Without banks and the banking services that they
provide, commerce and trade would collapse and credit would become virtually extinct.
As the decades progress many new concepts are being introduced into banking. At their
most basic, banks hold money on behalf of customers, which is payable to the customer
on demand, either by appearing at the bank for a withdrawal or by writing a check to a
third party. Banks use the money they hold to finance loans, which they make to
businesses and individuals to pay for operations, mortgages, education expenses, and any
number of other things. Many banks also perform other services for a fee; for instance
they offer certified checks to customers guaranteeing payment to third parties. In some
countries they may provide investment and insurance services. With the exception of
Islamic banks, they pay interest on deposits and receive interest on their loans. Banks are
regulated by the laws and central banks of their home countries; normally they must
receive a charter to engage in business. Banks are usually organized as corporations.

CLASSIFICATION OF BANK

Banks are classified into various types based on the function they perform. They are as
follows:

1. COMMERCIAL BANK:
Commercial banks perform all the business transactions of a typical bank. They
accept saving bank deposits, fixed deposits and current deposits which are
repayable on demand or on short notice.

Likewise, they lend or invest only for short durations. They provide funds only
for short term needs of trade and commerce. These banks cannot invest credits

15
 and overdrafts as they are expected to meet the immediate requirement of
depositors. The commercial banks provide a vital service to its customers, a
simple means of medium of exchange called cheques. They also perform a large
number of agency functions to their customers for which they charge a
commission.

2. INDUSTRIAL/ INVESTMENTS BANKS:

Investment banks, also called industrial banks, are those banks which provide
funds on a long for industries. They are specialized in providing long term loans
to industries with a view to buy plant, machineries, etc. These banks obtain funds
through share capital, debenture and long term deposits from the public. The bank
floats bonds for the sake of mobilizing funds to provide funds for big industrial
corporations. They also underwrite or issue new shares and debenture of industrial
companies. They also purchase entire issue of new securities of company and
later sell them to public at higher prices.

3. EXCHANGE BANKS:

Exchange banks are known as foreign banks or foreign exchange banks. These
banks also provide foreign exchange for import trade. Their main function is to
make international payment through the purchase and sale of exchange bills. The
exchange bank provides assistance in the conversion of currencies. They discount
foreign exchange bills which are used in foreign trade.

4. CO-OPERATIVE BANKS:

Co-operative banks are performed to meet the meet the banking requirements of
consumers. They are established in urban as well as rural areas. In rural areas, the
bank provides finance to agriculture and in urban area it provides finance to buy
consumer goods. These banks function like commercial banks receiving deposits
and lending money. They provide short and medium term loans. As they are

16
 formed on cooperative principles, they are more service oriented rather than
profit. The bank provides credit at lower rates of interest to people of small means
like small cultivators, artisans, petty shop-keepers etc. They have been classified
into land development banks or land mortgage banks and urban credit-oriented
banks.

5. SAVINGS BANK:

Savings banks are specialized financial institution establishment to mobilize

savings from the people. They pool the savings of the small incomes of the
community. The savings banks accounts have been provided by all commercial
and co-operative banks and even post offices. Saving bank business has become
more prominent than others forms of accounts as it provide various facilities like
frequent withdrawals, attractive rate of interest, the use of cheques etc.

6. CENTRAL BANK (RBI):

Central bank is an apex bank in the country. It brings the entire banking system
unified, controlled and regulated. It is the main source of an efficient banking
system in the country. The monetary policy of a country is formulated and
enforced by the central bank. It is responsible for monetary stability in the
country. The expansion and contraction of note issue are managed by the central
bank. It functions as a banker to the government and commercial banks.

FUNCTIONS OF BANKS

Prof. Sayers in his book ‘Modern Banking’ has described the functions of a modern bank
in the following words: “Ordinary banking business consists of changing cash from bank
deposits and bank deposits for cash, transferring bank deposits for cash, transferring bank
deposits from one person to another and giving bank deposits in exchange of bills of
exchange, government bonds, the secured promises of businessmen to repay and so
forth.”

The various functions of a modern bank are as follows:

1. Accepting deposits from public:

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The major function of the commercial banks is accepting various types of deposits such
as fixed deposits, current deposits and savings deposits. People want to keep their cash
balances safe for which they deposit it with a bank. The commercial bank protects the
cash of the customers and provides a convenient method of transferring funds through the
use of cheques. It is the obligation of bank to honourcheques drawn upon the bank,
making payment across the counter on demand by the customers to the extent of money
available at the credit of customer’s account.

 Fixed deposits:

A fixed deposit is one where a customer keeps a certain amount of money in a

bank for a specific period. It may be 6months, 1 year, 2 years 3 years or 5 years.
The fixed deposit is not expected to be withdrawn before the expiry of the period.

 Saving deposits:

Saving deposits are those deposits on which the bank pays a certain conditions.
The customers are expected to maintain a minimum balance in the account.

 Current deposits:

Current deposits are those deposits which can be withdrawn at any time by means
of cheques. The bank does not pay interest on current deposit. A customer who
opens a current account has to maintain a minimum credit balance of Rs. 500. At
the same time current holders has to pay service charge.

2. Making loans and advances-

The second main function of the commercial banks is to provide loans and advances out
of the money the bank receives by the way of deposits. The bank receives deposits in
order to lend the same. It is this function of a banker’s activities which is the largest
contributor to the bank’s profit. Commercial banks provide various types of loans such as

18
direct loans, cash credit, bills discounted and overdrafts etc. Direct loans and advances
are provided to all types of persons against the security of movable properties.

3. Agency services

Another important function of a banker is the services offered by them as an agent. The
commercial banks render a significant service by providing to its customers a simple means of
medium of exchange called cheques. The cheque system is considered to be the most developed
type of credit instrument. The banks perform miscellaneous functions such as undertaking the
payment subscriptions, insurance premium, rent, etc. On the behalf of the customers they collect
cheques, bills, salaries, pensions, dividends, interests, etc that belongs to the respective accounts
of the customers. The banks perform these functions as per the instructions given by the
customers and make payments as and when directed. For these services they charge a certain
amount of fee by means of commission.

4. General utility services-

A banker performs many general utility personal or miscellaneous services for his
customers. The general utility services include the safe- keeping of valuables and
documents, the issue of credit instrument for easy transfer of funds, collection of credit
information regarding the customers, transaction in foreign exchange and provision of
specialized advisory services to the customers.

FINANCIAL INSTRUMENTS:

A financial instrument refers to these documents which represent financial claims

on assets. Financial instrument can also be called financial securities. These
instruments are classified into
a) PRIMARY SECURITIES: Shares and debentures issued directly to Public.
b) SECONDARY SECURITIES: These securities issued by some
intermediaries ex; UTI and Mutual fund again these securities may be
classified on the basis of duration as follows.
 Short Term Securities: Within one year ex; bills of exchange.

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  Medium Term Security: Maturity period between 1-5 years ex;
debentures.
 Long Term Securities: Maturity period more than 5 years ex; Gilts.

FINANCIAL SERVICES:

a) MERCHANT BANKING: A merchant banker is a financial intermediary who

helps to transfer capital from those it to those who needit.
b) LOAN SYNDICATION: Much number of banks joins together and forms a
syndicate to provide loan as big sum to corporate.
c) LEASING: A lease is an agreement under which a company acquires a right to
make use of capital assets like machinery for agreed period in return for periodic
payment of rentals.
d) HIRE PURCHASE: It is an agreement relating to transaction in which goods
are let on hire.
e) FACTORING: It is an agreement under which a financial intermediary assumes
the credit risk in the collection ofbook debt passes for its client.
f) VENTURE CAPITAL: A venture capitalist finances a project based on the
potentialities of new innovative projects for new entrepreneurs.
g) MUTUAL FUND: A mutual fund refers to a fund raised by a financial services
company by pooling the savings of the public.

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Chapter – II

21
COMPANY PROFILE – ICICI BANK LTD.

ICICI Bank (formerly Industrial Credit and Investment Corporation of India).

ICICI Limited was established in 1955 by the World Bank, the Government of India and
the Indian Industry, for the promotion of industrial development in India by giving
project and corporate finance to the industries in India.
ICICI Bank has grown from a development bank to a financial conglomerate and has
become one of the largest public financial institutions in India. ICICI Bank has financed
all the major sectors of the economy, covering 6,848 companies and 16,851 projects.
ICICI Bank Fact Files:
Network: 580 branches
ATMs: Over 2000
Abroad Subsidiaries: United Kingdom and Canada
Abroad branches: Singapore and Bahrain
Representative offices: United States, China, United Arab Emirates, and Bangladesh
and South Africa.
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. 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 (BSE: ICICI) (Industrial Credit and Investment Corporation of India) is
India's largest private sector bank in market capitalization and second largest overall in
terms of assets. Bank has total assets of about USD 100 billion (at the end of March

22
2016), a network of over 1,491 branches, 22 regional offices and 49 regional processing
centers, about 4,485 ATMs (at the end of September 2016), and 24 million customers (at
the end of July 2015). ICICI Bank offers a wide range of banking products and financial
services to corporate and retail customers through a variety of delivery channels and
specialized subsidiaries and affiliates in the areas of investment banking, life and non-life
insurance, venture capital and asset management. (These data are dynamic.) ICICI Bank
is also the largest issuer of credit cards in India. ICICI Bank has got its equity shares
listed on the stock exchanges at Kolkata and Vadodara, Mumbai and the National Stock
Exchange of India Limited, and its ADRs on the New York Stock Exchange (NYSE).

The Bank is expanding in overseas markets and has the largest international balance sheet
among Indian banks. ICICI Bank now has wholly-owned subsidiaries, branches and
representatives offices in 18 countries, including an offshore unit in Mumbai. This
includes wholly owned subsidiaries in Canada, Russia and the UK (the subsidiary
through which the hisave savings brand is operated), offshore banking units in Bahrain
and Singapore, an advisory branch in Dubai, branches in Belgium, Hong Kong and Sri
Lanka, and representative offices in Bangladesh, China, Malaysia, Indonesia, South
Africa, Thailand, the United Arab Emirates and USA. Overseas, the Bank is targeting the
NRI (Non-Resident Indian) population in particular.

ICICI Bank currently has subsidiaries in the United

Kingdom, Russia and Canada, branches in Singapore,
Bahrain, Hong Kong, Sri Lanka and Dubai International
Finance Center and representative offices in the United
States, United Arab Emirates, China, South Africa and Bangladesh. Our UK subsidiary
has established a branch in Belgium. ICICI Bank is the most valuable bank in India in
terms of market capitalization.
ICICI Bank's equity shares are listed in India on the 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).

23
 ICICI Bank has formulated a Code of Business Conduct and Ethics for its Directors
and employees. At June 5, 2014, ICICI Bank, with free float market capitalization of
about Rs. 480.00 billion (US$ 10.8 billion) ranked third amongst all the companies listed
on the Indian stock exchanges.
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 service 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 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.

BUSINESS OBJECTIVES

24
Vision

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

Mission

 We will leverage our people, technology, speed and financial capital to:
be the banker of first choice for our customers by delivering high quality, world-
class

service.

 Expand the frontiers of our business globally.

 Play a proactive role in the full realisation of India’s potential.
 maintain a healthy financial profile and diversify our earnings across businesses
and

geographies.

 Maintain high standards of governance and ethics.

 Contribute positively to the various countries and markets in which we operate.
 Create value for our stakeholders.

Product and Services

Service and banking of ICICI bank categorized in to personal banking, business banking
and NRI banking services.

Personal banking- Deposit in form of saving, recurring, term deposit, senior citizen
deposit and children depository account are there for individual customer can also avail
of their housing, automobile, farm equipment, business or personal loan scheme. Personal
client can also invest in mutual funds and participate in stock trading through ICICI bank.

25
Business banking – Business banking services of ICICI Bank are exhaustive. Project
financing, deal assessment, and land evaluation are investment banking services offered
to corporate clients. Global trade and cash management transaction services facilitate
remittances and receipts across important cities. Capital market and custodial services
enable business houses to participate in equity trading and transfer acrossmajor stock
markets.

Customer

ICICI bank targets all segment of customer with various types of products and services. I
interacted with aa lot of customers and collect their feedback on the given services of
company, and feedback are positive response from all point of view. Customers are
beneficiary from both sides monetary as well as non monetary. The bank targets to add
nearly 500,000 customers under the new scheme in the next one year and plans to offer
auto loans through the new online channel in the future, ICICI Bank's Executive Director,
V Vaidyanathan, said here.

"As of now, nearly 24 per cent of our customer transactions are happening through
internet. We are primarily targeting our urban customers, who constitute nearly 70 per
cent of our total customer-base," Vaidyanathan said.

Customers, opting for the service can also benefit from the quantum optima facility,
wherein if the balance exceeds Rs 5,000, the money will automatically be transferred to a
fixed deposit scheme, he said. The facility, which also enable customers to transact
between an ICICI Bank account and accounts in other banks, is being offered free of cost,
he said ICICI bank, presently, has above 2 crore customers. The lender opened nearly
470 branches in the last fiscal. The lender has also plans to launch 'SMS n Cash' scheme
later this week under which ICICI account holders can transfer funds to those who do not
have a bank account. ICICI bank is strongly committed to protecting the privacy of its
customers and has taken all necessary and reasonable measures to protect the

26
confidentiality of the customer information and its transmission through the world wide
web and it shall not be held liable for disclosure of the confidential information when in
accordance with this privacy commitment or in terms of the agreements, if any, with the
customers.

ICICI bank Endeavour’s to safeguard and ensure the security of the information provided
by the customer. ICICI bank uses 128-bit encryption, for the transmission of the
information, which is currently the permitted level of encryption in India. When the
information provided by the customers is not transmitted through this encryption, the
customer's system (if configured accordingly) will display an appropriate message
ensuring the best level of secrecy for the customer's information.

The customer would be required to cooperate with ICICI bank in order to ensure the
security of the information, and it is recommended that the customers necessarily choose
their passwords carefully such that no unauthorized access is made by a third party. To
make the password complex and difficult for others to guess, the customers should use
combination of alphabets, numbers and special characters (like! @, #, $ etc.). The
customers should undertake not to disclose their password to anyone or keep any written
or other record of the password such that a third party could access it.

 ICICI bank undertakes not to disclose the information provided by the customers
to any person, unless such action is necessary to:
 Conform to legal requirements or comply with legal process;
 Protect and defend ICICI bank's or its affiliates rights, interests or property;
 Enforce the terms and conditions of the products or services; or
 Act to protect the interests of ICICI bank, its affiliates, or its members,
constituents or of other persons.

Competitor

27
The main competitor of is ICICI bank is SBI because this bank is totally taken by
government after this bank HDFC bank is the main competitor of ICICI bank .There are
different types of segment operation semment, investment and services, demat and NRI
services.The competitor from the operation segment are State Bank of India(SBI), Axis,
Housing Development and Financial corporation(HDFC) etc.From the investment And
service sector HDFC standard life insurance corporation, Bharati Axa life insurance
,Reliance Life Insurance Corporation, Max new work life insurance SBI Life
insurance,Life Insurance Corporation of India.In demat section India
bull,Anangram,SBI,HDFC,India Infoline are the main competitor of ICICI bank.In the
NRI service section the Western Union bank is the main competitor of ICICI bank.There
are some other company who also compete with the ICICI bank After the SBI the HDFC
bank is the main competitor of ICICI bank.

HDFC Bank Ltd. is a commercial bank of India, incorporated in August 1994, after the
Reserve Bank of India allowed establishing private sector banks. The Bank was promoted
by the Housing Development Finance Corporation, a premier housing finance company
(set up in 1977) of India. HDFC Bank has 1,500 branches and over 2,890 ATMs, in 530
cities in India, and all branches of the bank are linked on an online real-time basis. As of
September 30, 2016the bank had total assets of INR 1006.82 billion.

State Bank of India is the largest bank in India. It is also, measured by the number of
branch offices and employees, the second largest bank in the world.[citation needed] The
bank traces its ancestry back through the Imperial Bank of India to the founding in 1806
of the Bank of Calcutta, making it the oldest commercial bank in the Indian Subcontinent.
The Government of India nationalised the Imperial Bank of India in 1955, with the
Reserve Bank of India taking a 60% stake, and renamed it the State Bank of India. In
2016, the Government took over the stake held by the Reserve Bank of India.SBI
provides a range of banking products through its vast network in India and overseas,
including products aimed at NRIs. With an asset base of $126 billion and its reach, it is a
regional banking behemoth. SBI has laid emphasis on reducing the huge manpower
through Golden handshake schemes and computerizing its operations.The State Bank
Group, with over 16000 branches , has the largest branch network in India. It has a

28
market share among Indian commercial banks of about 20% in deposits and advances,
and SBI accounts for almost one-fifth of the nation’s loans.There are some other banks
which gives challenging some how in the banking and service sectorthey are:

 Allahabad Bank
 Andhra Bank
 Bank of Baroda
 Bank of India
 Bank of Maharashtra
 Canara Bank
 Central Bank of India
 Corporation Bank
 Dena Bank
 IDBI Bank
 Indian Bank
 Indian Overseas Bank
 Oriental Bank of Commerce
 Punjab & Sind Bank
 Punjab National Bank
 Syndicate Bank
 UCO Bank
 Union Bank of India
 United Bank of India
 Vijaya Bank

Environment

An employer the bank extends a lot of authority along with justified accountability to
you. The working culture is very collaborative in nature. It can be owed to the fact that
the bank is highly segmented with a lot of overlapping and mostly distinct roles and

29
responsibility.ICICI Bank has established itself as a one stop solution (Universal Bank)
for all financial need of individuals and institutions alike. The credit for the same can be
attributed to its vast network, probably the largest among private sector banks.This makes
the life of an employee a lot easier, especially for those who face the external customers.
You do not have to justify your organization, it is only the product that has to be pitched.
As far as employee benefits are concerned, ICICI Bank offers a lot of financial benefits
ranging from your family health insurance to your kids school donations. The
organization is sensitive to the needs of its employees as this quality is one of the
building blocks (DNA) of the organizational culture.  The organization will be giving you
enough flexibility to innovate and come-up with new ideas. It will also exhibit its in
terms of well laid systems, processes and infrastructure. It will extend a fast track growth
for those with extraordinary talent at the same time offer stability to those who are able to
deliver satisfactorily.Overall, I would say it’s a lifetime experience to work with such a
behemoth organization. It might not be the best paymaster but it definitely will impress
you with its capability as the head master (Principal) of banking industry.there are huge
competition between the eployee to achieve theo goal.

TECHNOLOGY

ICICI use many type of advance technological software like Pinnacle 7.0 and
Pinnacle7.016.Among from this software ICICI bank uses the e-banking, core banking,
mobile banking electronic display sy ICICI Bank was using Teradata for its data
warehouse.  However, due to its proprietary hardware, the cost of procurement, upgrades
and administration was soaring. The closed box architecture of Teradata imposed
restrictions on scalability. Secondly, querying and loading could not happen
simultaneously. Queries could only be run during business hours because the loading of
data had to take place during off-business hours. This meant that the refresh rate of EDW
was delayed, so queries may not reflect the most current data. ICICI Bank was also
dependent on Teradata for support and other activities: The bank was completely tied
down to that solution.

30
These issues compelled ICICI Bank to look for more efficient and flexible solutions. The
solution would have to address not only current issues, but accommodate future growth
expectations and business requirements. ICICI Bank evaluated numerous data
warehousing solutions in the pursuit of solving its issues, and developed a shortlist of
alternatives for its migration proof-of-concept: Sybase, SAS and Netezza. The primary
criteria for evaluation was the price-to-performance ratio where Sybase IQ emerged the
clear winner.  During this rigorous testing, Sybase IQ delivered faster results on
independent hardware and operating systems with minimum infrastructure. Commending
the improvements achieved, Amit Sethi, Joint General Manager, ICICI bank says, "What
impressed us wasthat even with overall lower costs, we could achieve significantly better
query performanceafter implementing the Sybase enterprise warehouse solution." ICICI
Infotech today launched an enterprise resource planning (ERP) solution for the small and
medium enterprises.

The ERP package - Orion Advantage - comes bundled with an HP dual processor Xeon
server, Oracle 9i database, Windows 2003 server and costs about Rs 9.90 lakh and has a
15-user license.

An ERP package helps a manufacturer or any other business implementing it to manage

all the important parts in the company such as product planning, parts purchasing,
maintaining inventory and interacting with suppliers and customers.

ICICI InfoTech officials told a press conference here today that Orion Advantage offered
a set of business practice solutions for industry segments such as engineering, auto
ancillary, pharmaceuticals, chemicals and IT distribution. Besides the cost advantage, the
ERP package also came pre-configured. ICICI InfoTech had mapped the processes
specific to each industry segment into the package.

Mr. R.K. Kanthi, Deputy General Manager, ICICI InfoTech, said there was no ERP
package for the SMEs that bundled the server, database and operating system right now.
That was the advantage ICICI InfoTech offered to SMEs as Orion Advantage came
bundled and pre-configured. Besides the high cost of generic ERP packages, their

31
implementation time as far as SMEs were concerned was also long. Orion Advantage
could be installed in 45 days.

ICICI InfoTech had signed up six customers so far for the package and hoped to garner a
15 per cent market share of the SME segment, whose number in the country was
estimated at 2.30 lakh.

The Chennai centers were involved in research and development of Orion ERP solutions
and Premia, an insurance package.

ERP Systems Integration

Pinnacle Software Solutions has the expertise and experience to assist you with your
enterprise systems integration. From developing your strategy, through implementation
and support, we bring the right combination of resources, management skill sets, and
technical know-how. We will help you successfully integrate your Enterprise Resource
Planning (ERP) systems into your overall business and technology infrastructure.

Whether you are planning an upgrade of an existing ERP system, or a complete

replacement of a legacy application and platform, we can help you improve your
financial, human resources, electronic mail, and other business systems. We work with
the leading ERP systems, including the latest versions of the Oracle and PeopleSoft
applications:

  General Ledger   Project Costing

 Accounts Payable   Human Resources
  Accounts Receivable   Payroll
 Purchasing   Benefits
 Asset Management   Compensation

Our technology management solutions will help you migrate hardware platforms,
improve network and database performance, develop or refresh policies and procedures,
and develop sound disaster recovery and backup solutions. Please contact us to learn how
Pinnacle Software Solutions can help you develop “solutions that fit” your enterprise.

32
KEY SUBSIDIARIES

ICICI Prudential Life Insurance Company

ICICI Prudential life Insurance Company Limited was incorporated on 20th July
2000.The authorized capital of the company is Rs.2300 million and the paid up capital is
Rs.1500 million. The company is joint venture of ICICI (74%) and UK based company
Prudential Plc (26%). The company was granted certificate of registration for carrying
business, by Insurance Regulatory and Development Authority on 24th November 2000. It
commenced commercial operation from 19th December 2000 and becoming a leading
private sector life insurance company.

The company recognizes that the driving force for gaining sustainable competitive
advantage in this business is superior customer experience and investment behind the
brand. The company aims to achieve this by striving to provide world class service level
trough constant innovation in product, distribution channels and technology based
delivery.

33
Vision and Mission

Their vision is to make ICICI Prudential Life Insurance Company the dominant new
insurer in the life insurance industry. This they hope to achieve through their commitment
to excellence, focus on service, speed and innovation, and leveraging our technological
expertise.

The success of the organisation will be founded on its strong focus on values and clarity
of purpose. These include:

  Understanding the needs of customers and offering them superior products and
service
  Building long lasting relationships with their partners
  Providing an enabling environment to foster growth and learning for their
employees

And above all building transparency in all our dealings. They believe that they can play a
significant role in redefining and reshaping the sector. Given the quality of their
parentage and the commitment of their team, they feel that there will be no limits to their
growth.

Board of Directors
The ICICI Prudential Life Insurance Company Limited Board comprises reputed people
from the finance industry both from India and abroad. 

Shri K.V. Kamath, Chairman 

Management Team
Ms. Shikha Sharma, Managing Director
Mr. Kevin Wright, Executive Vice President - Sales & Distribution
Ms. MadhaviSoman, Chief - Strategic Initiatives
Mr. V. Rajagopalan, Appointed Actuary 
Mr. Sandeep Batra, Chief Financial Officer & Company Secretary

34
Mr. Saugata Gupta, Chief - Marketing & Service
Mr. Shubhro J. Mitra, Chief - Human Resources 

Corporate Office:

ICCI Prulife Towers,

1089, AppasahabMarathe Marg,
Prabhadevi,
Mumbai 400 025.
Telephone Number: 022-462 1600
Website : www.iciciprulife.com

ICICI Prudential Life Insurance Company (ICICI Life) maintained its market leadership
in the private sector with an overall market share of 9.3% based on retail new business
weighted received premium in fiscal 2010. ICICI Life’s total premium increased by 7.7%
to Rs. 165.32 billion in fiscal 2010 with renewal premiums increasing by 19.4%. ICICI
Life’s new business annualised premium equivalent was Rs. 53.45 billion in fiscal 2010.
ICICI Life achieved its first year of accounting profits since inception in fiscal 2010 with
a profit after tax of Rs. 2.58 billion.

The expense ratio has decreased from 11.8% in fiscal 2017 to 9.1% in fiscal 2010. Assets
held at March 31, 2010 were Rs. 573.19 billion compared to Rs. 327.88 billion at March
31, 2017.

ICICI Life’s unaudited New Business Profit in fiscal 2010 was Rs. 10.15 billion. Life
insurance companies make accounting losses in initial years due to business set-up and
customer acquisition costs in the initial years and reserving for actuarial liability. Further,
in India, amortization of acquisition costs is not permitted. These factors resulted in
statutory losses for ICICI Life since the company’s inception till fiscal 2017. If properly
priced, life insurance policies are profitable over the life of the policy, but at the time of
sale, there is a loss on account of non-amortized expenses and commissions, generally

35
termed as new business strain that emerges out of new business written during the year.
New Business Profit is an alternate measure of the underlying business profitability

(as opposed to the statutory profit or loss) and is the present value of the profits of the
new business written during the year. It is based on standard economic and non-economic
assumptions including risk discount rates, investment returns, mortality, expenses and
persistency assumptions.

ICICI Lombard General Insurance Company

ICICI Lombard General Insurance Company Limited is a 74:26 joint venture between

ICICI Bank Limited and Canada based Fairfax Financial Holdings Limited. ICICI
Bank is India's second largest bank, while Fairfax Financial Holdings is a diversified
financial corporate engaged in general insurance, reinsurance, insurance claims
management and Investment management. Lombard Canada Ltd, a group company of
Fairfax Financial Holdings Limited, is one of Canada's oldest property and casualty
insurers. ICICI Lombard General Insurance Company received regulatory approvals to
commence general insurance business in August 2000.

Board Members

 Mr K V Kamath, Chairman
 Mr R Athappan, Director
 Mr B V Bhargava, Director
 MrDileepChoksi, Director
 Mr James F Dowd, Director
 MsLalita D Gupte, Director
 MsKalpanaMorparia, Director
 Mr S Mukherji, Director
 MrChandranRatnaswami, Director
 Mr H N Sinor, Director
 Mr Sandeep Bakhshi, Managing Director & CEO

36
Retail Segment of ICICI Lombard General Insurance :

ICICI Lombard's Retail Segment consists of personal insurance products - Health, Home,
Motor and Travel insurances.

Health Insurance

ICICI Lombard is known to be a pioneer in introducing innovative concepts in the Indian

health Insurance sector. Be it the floater concept, the critical illness cover or the tax gain
policy, all these were first introduced by ICICI Lombard. It was also one of the first
general insurance companies in India to have a robust online system in place for buying
and renewing policies.

The various plans offered by ICICI Lombard include Family Floater Plan - where one
policy covers the entire family, Health Advantage Plus - where they cover OPD and
dental expenses, also help save maximum tax under section 80D and Critical Illness
plan - a special policy covering a list of critical illnesses. They also have a basic Personal
Accident Plan which covers against accidents. ICICI Lombard health plans also provide
coverage against terrorism.

Home Insurance

Home Insurance is actually one of the most neglected areas in the general insurance
category. Simply, because people in general, especially in India, do not give much
importance to it. However, in the recent years, due to the increase in awareness, and the
great extent of damage caused to property due to natural calamities and terrorism, it has
been gaining importance. The Home Insurance Policy offered by ICICI Lombard covers
both the structure and the contents of the house. You can opt for either of the covers or
both. Unlike other policies, it also covers damage due to terrorist activities, loss of cash,
public liability, temporary resettlement and others.

Motor Insurance

As Motor Insurance is mandatory in India and is governed by the Motor Tariff Act, the
policies offered by various companies are more or less the same. There is not much room
for innovation in this category. ICICI Lombard too offers Car Insurance and Two

37
Wheeler Insurance. They are known to offer one of the best rates in the market. As the
entire buying process is online and is instant, without any submission of documents or
other formalities, people generally opt it for convenience.

Travel Insurance

Travel insurance is one of the most prominent sector of general insurance, especially
overseas travel insurance and student medical insurance. ICICI Lombard offers various
options in both the categories. The Overseas Travel Plans and Student Medical
Plans offered cover medical and non-medical expenses, including compensation for
flights hijacked and pre existing diseases in case of emergency. They charge on a per day
basis if the travel is more than 7 days. ICICI Lombard has tied up with United Health
Group to facilitate access to all its clinics while in U.S.

The Student Medical Plans are accepted in almost universities worldwide. They also have
a section in their website, University Search, where one can find specific plans for
specific universities.

All the above retail policies can be bought online, without any documentation through
their website www.icicilombard.com .One can not only buy, but also manage and renew
their insurance policies online.

NRI Services

ICICI Lombard has developed insurance policies for Non-resident Indians that can be

bought, renewed and tracked online.

Parents' Health Insurance covers hospitalization and medical expenses incurred by

parents of the policyholder in India. For parents' travelling outside India, ICICI Lombard
offers a Parents' Overseas Travel Insurance policy.

An NRI can insure his children/ dependents travelling abroad to study, under the Student
Medical Insurance plan. Likewise, the Home Insurance and Car Insurance schemes
enables an NRI to secure his assets in India.

Channels

38
Channel is the term used for the various approaches a company uses to tap its customers.
ICICI Lombard uses a multi channel approach to ensure the sales, service and other allied
activities are carried out in the most effective manner.

Retail

The Retail channel consists of sales executives, sales officers, brokers and agents. They
are the one who are in direct contact with the customers and bring the innovative
insurance solutions to their doorsteps.

Online

ICICI Lombard has developed a web-based system to meet all the pre and post-policy
transaction. One can get quotes, buy, renew and track their policies onlin e through the
website [www.icicilombard.com]. With the do-it-yourself architecture, the online channel
is fast, convenient, easy to understand and operate.

ICICI Lombard General Insurance Company (ICICI General) maintained its leadership in
the private sector with an overall market share of 9.5% in fiscal 2010. ICICI General’s
gross written premium during fiscal 2010 was Rs. 34.32 billion. The industry continued
to witness a slowdown in growth on account of de-tariffication of the general insurance
industry whereby insurance premiums were freed from price controls, resulting in a
significant reduction in premium rates. The industry also continued to witness the impact
of motor third party insurance pool for third party insurance of commercial vehicles.
ICICI General achieved a profit after tax of Rs. 1.44 billion in fiscal 2010 compared to
Rs. 0.24 billion in fiscal 2017.

ICICI Prudential Asset Management Company

ICICI Prudential Asset Management Company (ICICI AMC) was the third largest asset
management company in India. The average assets under management of ICICI AMC

39
increased from Rs. 514.56 billion for March 2017 to Rs. 810.18 billion for March 2010.
ICICI Prudential AMC achieved a profit after tax of Rs. 1.28 billion in fiscal 2010
compared to Rs. 7.1 million in fiscal 2017.

ICICI Venture Funds Management Company Limited

ICICI Venture Funds Management Company Limited (ICICI Venture) maintained its
leadership position in private equity in India, with funds under management of about Rs.
114.40 billion at year-end fiscal 2010. ICICI Venture achieved a profit after tax of Rs.
515.2 million in fiscal 2010 compared to Rs. 1.48 billion in fiscal 2017. The profit for
fiscal 2017 includes gains from the sale of stake in TSI Venture.

ICICI Securities Limited and ICICI Securities Primary Dealership Limited

ICICI Securities achieved a profit after tax of Rs. 1.23 billion in fiscal 2010 compared to
Rs. 0.04 billion in fiscal2017. ICICI Securities Primary Dealership achieved a profit after
tax of Rs. 849.8 million in fiscal 2010 despite the significant increase in yields on
government securities, as compared to a profit after tax of Rs. 2.72 billion in fiscal 2017

ICICI Bank UK PLC

ICICI Bank UK PLC (ICICI Bank UK) offers retail and corporate and investment
banking services in the UK and Europe. During fiscal 2010, ICICI Bank UK continued to
focus on rebalancing its deposit base towards retail term deposits and the proportion of
retail term deposits in total deposits increased from 58% at March 31, 2017 to 66% at
March 31, 2010. ICICI Bank UK’s profit after tax for fiscal 2010 was USD 37.0 million

40
compared to US$ 6.8 million in fiscal 2017. ICICI Bank UK’s capital position continued
to be strong with a capital adequacy ratio of 17.3% at March 31, 2010.

ICICI Bank Canada

ICICI Bank Canada is a full-service bank which offers a wide range of financial solutions
to cater to personal, commercial, corporate, investment, treasury and trade requirements.
ICICI Bank Canada’s profit after tax for fiscal 2010 was CAD 35.4 million compared to
CAD 33.9 million in fiscal 2017. At March 31, 2010, ICICI Bank Canada had total
advances of CAD 3.89 billion and total assets of CAD 5.68 billion. ICICI Bank Canada’s
capital position continued to be strong with a capital adequacy ratio of 23.4% at March
31, 2010.

41
 Chapter - III

Different Types of Loans Offered by ICICI Bank and Their

Schemes:

(1) United Housing Loan Scheme

42
A shelter which you can call your own has been eluding you so far? Not anymore. With
the United Housing Loan Scheme, almost anyone can now fulfil his long cherished dream
of owning a house or a flat of his/ her choice at most attractive terms.

Eligibility:

Any individual aged 21 years or above having regular income.

Purpose:

 Purchase of land, purchase or construction of house/ flat.

 Purchase of up to 35 years old house/ flat. 
 Renovation/ extension/ repair/ furnishing of house/ flat.
 Taking over of existing Housing Loan form other Bank/ Financial Institution.
 The loan is now extended to those cases also where flats are being constructed by
promoters/ developers where immediate mortgage of the property may not be
possible.

Quantum of loan:

Quantum of loan depends on the cost of house/flat, application’s age, income, repayment
capacity etc

(2) United Car Loan Scheme

ICICI Bankjoins Hands with MarutiUdyog Ltd.  For Financing Purchase of Maruti Cars

Purpose:

Purchase of any Maruti Brand Car from authorized Maruti Dealer.

Eligibility :

43
  Any individual with gross income of Rs.10,000/- and minimum net income of
Rs.5,000/- per month.
 
 To be eligible the applicant will be required to get minimum score as per
structured scoring Model of UBI.

Quantum of Loan :

Max. Rs.6 lack.

Margin: 10%

Security:

 In case of salaried person: Nil, if employer ensures repayment.

 In case of professional & Self-employed person :

To be secured by personal guarantee of 1 to 2 persons having adequate worth, otherwise

at least 60% of loan amount to be covered by liquid security in the form of Term
Deposits, NSCs, KVPs, LIPs (SV), and Relief Bonds etc

Eligibility Criteria

For purchase of new car as well as old car

    

Your Savings/ Current Deposit/ Term Deposit A/c holder with the Bank and fulfill the
following criteria -

 A minimum net income (take home salary for salaried person) of Rs 5,000/- per
month.
   

44
  In respect of working couple, net income of the spouse is considered for the
purpose of computing net income and monthly instalments, provided the spouse
joins as co-borrower and monthly instalment may be realised from the salaries of
either of them. In case of salaried person, the applicant should be in regular
service for at least 2 years. Professional and self-employed persons who are at
least 2 years in their profession.

Quantum of Loan:

 In case of individuals

Maximum amount of loan is 12.00 lacs in case of new car and Rs. 6.00 lacs in
case of old car.

Margin:

 New Car:- 10%

 Old Car:- 30% of the valuation amount in case of old car

Processing Charge: 0.50%

(3) United Personal Loan Scheme for Salaried Persons

Daughter’s marriage, major surgical operation, repairing of old house, passage money for
son’s education abroad or any other social pecuniary liability. You can now heave a sigh
of relief. Our Personal loan Scheme has been designed just to meet such eventualities.

Eligibility:

 If you are a salaried person, with permanent service for at least 3 years, you may
apply for the loan.

Quantum of Loan:
45
  The maximum amount of loan shall be Rs 3 lac or 40 months' net salary,
whichever is less.

Period of Loan:

 The loan is to be repaid within a period not exceeding 36 months.

(4) United Personal Loan Scheme for Pensioners

As a senior citizen of the society, you command a special respect from ICICI Bank. The
Bank is offering you a loan scheme for assisting you to meet your various family and
personal needs after retirement.

The salient features of the Revised Scheme are as under:

Objective:

To extend term loan to you to meet your family and personal expenses.

Eligibility:

If you are a pensioner of Central and State Governments, Central and State Governments'
Undertakings, Defence Services, reputed Companies, Educational Institutions
(Universities, Institutes, Schools and Colleges) and drawing pension from the Branches
of the United Bank, you are eligible for loan under the Scheme from the Branch, where
your pension is paid.

Age of the Borrower:

Your age at the time of availing loan should be such that the entire loan is repaid before
your attaining seventy five years of age.

Quantum of Loan:

A maximum of Rs 2 lakhs subject to 12 months' gross pension.

46
Margin: Nil

Processing Charge: 1%

Disbursement of Loan:

The loan shall be disbursed through your Savings Bank A/c other than the account in
which your pension is credited every month. If you are not having any other Savings
Bank A/c with the branch, you may open a Savings A/c with the Branch jointly with
another member of your family, preferably with family pensioner for the purpose of
availing of the loan under the Scheme.

(5) United Housing Loan for Pensioners

ICICI Bank takes care of your Housing and related requirements at post retirement stage.
You will also find us your companion in securing Shelter in any Old-Age Home. Salient
features of the Scheme are given below

Eligibility :

1. All pensioners of Central and State Governments, Central and State

Governments’ Undertakings, Defense Services, reputed Companies, Educational
Institutions (Universities, Institutes, Schools and Colleges) including pensioners
(VR and VRS) of United Bank .

2. YourMonthlyNetPensionshouldbeMinimumofRs.5,000/-
3. Your age at the time of availing the loan must be 70 years
4. You must be physically fit and mentally alert to execute the documents. Person(s)
in paralytic condition or bed-ridden is/are not eligible for the loan

Purpose :

 Renovation/extension/repair/furnishing of self-occupied house/ flat.

47
  Purchase/construction of new house/ flat.
Purchase of old house/ flat not old over 35 years from the date of completion of
construction.
 Securing shelter in any “Old-Age Home”

Quantum of Loan :

Max. Rs. 2 lac provided total deduction including EMI of the loan must not exceed 40%
of your net monthly pension. If your spouse joins as co-borrower and if he/ she is also
pensioner drawing pension from the our branch, pension of both of you shall be
considered for determining the quantum of loan within the overall ceiling.

Repayment Period :

Entire loan has to be liquidated before your attaining 75 years of age. The age of the 1st
pensioner or from whose income (also pensioner), the major recovery of loan will be
made, shall be the deciding factor for the period of loan (subject to maximum repayment
period of 10 years). However, where loan is extended for getting shelter in “Old -Age
Home” total repayment period must not exceed 10 years (120 EMI).

(6) United Cash Rental

ICICI Bank has come out with a loan scheme against future rent receivables for the
owners of house properties who have leased out or rented the same to bank, insurance
company, multinationals, company of good market standing, reputation and financial
position, financial institutions, financially sound public sector undertakings, Government
of India offices.

The Salient features of the loan scheme are indicatedbelow:

Eligibility

If you are an individual (single or joint) or firm or a company owning house, flat or
godown and letting or leasing it out to bank, insurance company, multinational company,

48
company of good market standing, reputation and sound financial position, financial
institution, financial sound PSU of Govt. of India (not individuals) and you are interested
to take loan against future rentals you may apply for the loan.

Quantum of Loan calculation

Max. Rs. 10 Crore where EMI should not exceed 80% of post tax monthly rent / lease
rent receivable (85% when our bank is tenant) & 80% valueof property t o be mortgaged.

Repayment

The loan is to be repaid within the unexpired period of lease/ tenancy or 8 years
whichever is lower.

Security

 Mortgage of the unencumbered property and/ or

 LIP/ KVP/ Relief Bond/ Bank's Term Deposit etc.
 Assignment of future rent receivables.

Margin

20% of the amount of rent receivables or 20% of the value of the house property or on
accrued/ surrender value of other securities.

Processing Charge: 1%

(7) United Demand Loan Scheme

ICICI Bank introduces a unique loan scheme against your savings in the form of NSCs/
KVPs/ Life Insurance Policies (Surrender Value). You can avail up to 100% of the face

49
value of your savings instruments or even more than that in case of NSCs/ KVPs. The
salient features of the scheme are as under:

Eligibility:

Any individual having investment in the form of LIP (Surrender Value)/ NSC/ KVP to
cover the loan amount in his/ her name and be introduced to the bank.

Purpose:

For meeting all types of personal expenses.

Demand loan - Quantum of loan:

a) Against LICI Policy -- 90% of Surrender Value

b) Against NSCs/ KVPs /Relief Bond etc –

(8) United Education Loan Scheme

We are now at your doorstep to support your pursuit for excellence. Our Educational
Loan Scheme has been designed to meet your expenses for higher studies in India and
abroad.

If you are an Indian National and secured an admission to any of the following academic/
professional/ technical courses through Entrance Test/ Selection process in a Board/
Institution/ University.

Courses Eligible for Study in India:

 Graduation Courses: B.A., B.Com, B.Sc., etc.

 Post Graduation Courses: Master’s and Ph.D.
 Professional Courses: Engineering, Medical, Agriculture, Veterinary, Law,
Dental, Management, Computer, etc.

50
  Computer Certificate Courses of reputed Institutes accredited to Dept. of
Electronics or Institutes affiliated to University.
 Courses like ICWA, CA, CFA, etc.
 Courses conducted by IIM, IIT, IISC, XLRI, NIFT, etc.
 Courses offered in India by reputed foreign Universities.
 Evening Courses of approved Institutes.
 Other Courses leading to Diploma/ Degree, etc. conducted by Colleges/
Universities approves by UGC/ Govt./ AICTE/ AIBMS/ ICMS, etc.

Courses Eligible for Study Abroad:

 Graduation : For job-oriented professional/ technical courses offered by reputed

Universities.
 Post Graduation: MCA, MBA, MS, etc.
 Courses conducted by CIMA - London, CPA in USA etc.

Quantum of Loan:

1. For study in India: Max. Rs. 10 lack.

2. For study abroad: Max. Rs. 20 lacks 

Other Rules:

Expenses covered by the Loan :

i. Fees payable to College/ School/ Hostel.

ii. Examination/ Library/ Laboratory Fee.
iii. Purchase of Books/ Equipments/ Instruments/ Uniforms.
iv. Caution Deposit/ Building Fund/ Refundable Deposit supported by Institution
Bills/ Receipts.
v. Travel Expenses/ Passage Money for studies abroad.
vi. Purchase of Computers: Essential for completion of the Course.

51
vii. Any other expenses required to complete the Course like study tours, project
work, thesis, etc.

Repayment of Loan:

The loan is to be repaid in 5 to 7 years after commencement of repayment. The

repayment will commence after a moratorium/ repayment holiday which is
Course period plus 2 years or 6 months after getting job whichever is earlier.

Life Insurance Coverage:

To ensure security to student's and borrower's life and against their loan liability
and additional loan component for payment of one-time premium for such
insurance coverage may be sanctioned by bank on request from the customer.

(9) United Mortgage Loan Scheme

Objectives:

Providing loan against mortgage of property to the owner of the property. The property
may be House/ Flat or any other commercial property but not agricultural land of any
other vacant land.

Purpose:

The loan is meant for general purpose of the borrower to meet any personal/ business
requirement except speculations.

Eligibility:

Any individual in the age bracket of 21-65 years having property to be mortgaged and
income to repay the loan. Company, Partnership firm, Co-operative Society and Trust

52
are, however, not eligible of the loan. Third party property also cannot be mortgaged for
taking a loan.

Quantum of loan:

Term Loan - Maximum Rs.15.00 Lac & OD facility - Max Rs.25.00 lac subject to

1. 24-times of monthly net income.

2. 50% of the value of property.

Total monthly deduction including proposed EMI / Intt on OD should not exceed 50% of the
gross monthly income of the borrower

(10) Kisan Credit Card

1. Objective

The scheme aims at providing adequate and timely credit for the comprehensive credit
requirements of farmers for taking up agriculture and allied activities under single
window, with flexible and simplified procedure, adopting whole farm approach,
including the short-term credit needs and a reasonable component for consumption needs,
through Kisan Credit Card including repayment of farmer's dues to non-institutional
lenders.

2. Area of operation

Through all rural and semi urban branches.

3. Eligibility

i. Short term crop loans to farmers those who are owner cultivators/share-
croppers/bargadars.
ii. KCC can also be issued for meeting the short term production
need/working capital needs in respect of the allied activities like poultry,

53
 dairy, pisciculture, floriculture, horticulture etc.
iii. KCC schemes also covers the term credits for agriculture and allied
activities.
iv. KCC is issued to individual borrower only on merit and not to corporate
body society, association, club, group etc.
v. Illiterate and blind persons intending to avail of this facility may be
allowed after taking proper safeguard against misuse and tampering.

4. Purpose

It is intended that both term as well as short term/working capital credit facilities will be
provided through single Kisan Credit Card. The passbook provided to KCC holders are to
be divided into three separate portions for maintaining the records of :-

a) short term credit / crop loans, b) working capital credit for activities allied to
agriculture and c) term credit (repayable beyond 12 months)

However, it is to be ensured that transaction records of different loan facilities are kept
distinct.

5. Credit limit

i. Minimum credit limit should be Rs.25000/- and maximum Rs.10.00 lac

in the form of working capital and term loan. However, in deserving
cases the upper limit may be enhanced above Rs.10.00 lac which has to
be disposed of under the D.P. of the General Manager in charge of
Priority Sector Lending.
ii. Working capital will be in the form of revolving cash credit and any
number of withdrawals and repayments in the account is allowed with a

54
 view to provide flexibility to the borrower in deciding the appropriate
time for withdrawal of the sanctioned limit and reducing his loan and
interest burden.(For ST Crop Loan, Consumption Loan and repayment of
non-institutional loans)
iii. Term Loan to be sanctioned for purchase of agricultural implements ,
plant and machinery and land developing including construction of
different types of storage facilities.
iv. While fixing the limit and sub-limits, entire year's production credit
requirement is reckoned, including those of ancillary activities such as
storing, marketing, electric expenses etc.
v. Credit limit is fixed on the basis of land holding under cultivation,
cropping pattern and the scale of finance recommended by District/State
level technical committee. In the absence of

such recommendation, the branch may fix appropriate scale of finance

for the crop after getting permission from the concerned Regional Office.
vi. The branch should also fix season-wise sub-limits within the overall
credit limit.
vii. Contingency expenses, including consumption loan should not exceed
10% of the ST loan sub-limit subject to maximum Rs.10,000/- till
harvesting the benefit of production linking with family need.
viii Repayment of loan availed from non-institutional lenders by the farmer
. borrowers in addition to consumption/contingency credit limit should not
exceed 25% of the ST loan sub-limit subject to maximum Rs.25,000/-.

55
 Chapter - IV

4. Data Analysis and Interpretation:

Table:1

56
Table showing total advances from the year 2014 – 2017
Year Amount ( in Crores) Percentage (%)
2014 – 2015 22,156.11 25.95
2015 – 2016 27,868.11 32.62
2016- 2017 35,393.55 41.43
Total 85,417.77 100

ANALYSIS:
From the above table it can be analysed that in the year 2014 – 2015 the total no. of
advances was 22,156.11 crore with a 25.95%; in 2015 – 2016 the total no. of advances
was 27,868.11 crore 32.62% and in the year 2016– 2017 the amount is 35,393.55 with
41.43%.

Graph: 1
Graph showing total advances from the year 2014 – 2017

Total advances

26%

41%

2014 - 2015
2015 - 2016
2016- 2017

33%

INTERPRETATION:
From the above pie- chart it can be inferred that in the year 2015 – 2016showed
the maximum advances.

57
Table 2
Table showing outstanding amount of loan for the years 2014 - 2017.
(a) Housing finance

Year Amount (in crore) Percentage (%)

2014 - 2015 1,418.57 31.80
2015 - 2016 1,453.67 32.50
2016- 2017 1,591.42 35.70
Total 4463.66 100

ANALYSIS:
From the above table it is analysed that when we compare the year 2014 – 2015 the
amount outstanding was 1,418.57 crore with 31.80%. In the year 2015 – 2016the amount
was 1,453.67 crore with 32.50 % and in the year 2016– 2017 it was 1,591.42 crore with
35.70%.

Graph 2
Graph showing outstanding amount of the loan for the years 2014 -
2017.
(a) Housing finance

58
 Housing finance

32%
36%

2014 - 2015
2015 - 2016
2016- 2017

33%

INTERPRETATION:
From the above pie- chart it can be inferred that there is continuous growth every year in
the housing finance segment. There is a noticeable growthin the home loan segment
which is very profitable to the bank for their further financial improvement.

Table 3
Table showing outstanding amount of loan for the years 2014 - 2017.
(b) Car loans

Year Amount (in crore) Percentage (%)

2014 - 2015 70.18 23.62
2015 - 2016 80.07 26.96
2016- 2017 146.81 49.42
Total 297.06 100

ANALYSIS:
From the above table it is analyzed that when we compare the year 2014 – 2015 the
amount outstanding was 70.18 crore with 23.62% . In the year 2015 – 2016the amount

59
was 80.02 crore which shows 26.96% and in the year 2016– 2017 the amount was 146.81
crore with 49.42%.

Graph3

Graph showing outstanding loan for the year 2014 – 2017.

(b) Car loan.

car loan

150

100 Amount outstanding in Rs.

Crore
50 Percentage

0
2014 - 2015
2015 - 2016
2016- 2017
Year

INTERPRETATION:
From the above graph it can be inferred that in the year 2016– 2017 there is a substantial
growth in the car loans as against all previous years.

Graph 4:
Table showing outstanding loan for the year 2014 – 2017.
(c) Personal loan
Year Amount( in Crore) Percentage (%)
2014 - 2015 384.46 28.31
2015 - 2016 425.11 31.32
2016- 2017 548.24 40.37
Total 1357.81 100
ANALYSIS:
From the above table it is analyzed that when we compare the year 2014 – 2015 the
amount was 384.46 crore which shows 28.31%. In the year 2015 – 2016the amount was

60
425.11 crore which shows 31.32% and in the year 2016– 2017 the amount was 548.24
crore which shows the percentage of 40.37.

Graph 4:
Graph showing outstanding loan for the year 2014 - 2017.
(c) Personal loan

personal loan

600
500
Amount outstanding in Rs.
400 Crore
300 Percentage
200
100
0
2014 - 2015
2015 - 2016
2016- 2017

INTERPRETATION:
From the above mentioned graph it can be interpreted that there is a substantial growth
every year in the personal loans.

Table 5
Table showing outstanding loan for the years 2014 - 2017.
(d) Educational loan
Year Amount (in crore) Percentage (%)
2014 - 2015 224.99 26.88
2015 - 2016 276.84 33.09
2016- 2017 335.07 40.03
Total 836.9 100
ANALYSIS:
From the above table it is analysed that when we compare the year 2014 – 2015 the
amount outstanding is 224.99 crore with 26.88%. In the year

61
2015 – 2016the outstanding amount is 276.84 crore with 33.09% and in the year 2016–
2017 the outstanding amount is 335.07 crore with 40.03%.

Graph 5
Graph showing outstanding loan for the year 2014 - 2017.
(d) Educational loan

Outstanding education loans

350
300
250 Amount outstanding in Rs.
Crore
200
Percentage
150
100
50
0
2014 - 2015
2015 - 2016
2016- 2017

INTERPRETATION:
From the above graph it is seen that there is a constant growth in the education loan of
ICICI Bank. There is a noticeable growth in the education loan segment which is very
profitable to the bank for their further financial improvement

Table 6

Table showing outstanding loans to retail sector for the year 2014 - 2017
Year Amount (in crore) Percentage (%)
014 - 2015 3,469.72 30.28
2015 - 2016 3,727.22 32.54
2016- 2017 4,260.36 37.18
Total 11,457.3 100
ANALYSIS:
From the above table it is analyzed that when we compare the year 2014 – 2015 the
amount was 3,469.72 crore with 30.28%. In the year 2015 – 2016the amount was

62
3,727.22 crore with 32.54% and in the year 2016– 2017 the amount was 4,260.36 crore
with 37.18% .

Graph 6
Graph showing outstanding loans to retail sector for the year 2014
- 2017.

Outstanding loans to retail sector

5,000.00
4,000.00
3,000.00 Amount in crore
Percentage
2,000.00
1,000.00
0.00
2014 - 2015
2015 - 2016
2016- 2017

INTERPRETATION:

From the above graph it can be inferred that there is a moderate growth in the
loans of the retail sector from 2014 - 2017.The maximum growth is in the year
2016– 2017.

Table 7
Table showing outstanding loans to corporate sector for the year 2014 –
2017.
Year Amount (in crore) Percentage (%)
2014 - 2015 13,032.09 26.05
2015 - 2016 15,661.44 31.29
2016- 2017 21,349.41 42.66
Total 50,042.94 100

ANALYSIS:

63
From the above table it is analysed that when we compare the year 2014 – 2015 the
amount was 13,032.09 crore which shows a percentage of 26.05. In the year 2015 –
2016the amount was15,661.44 in crore which shows the percentage of 31.29 and in the
year 2016– 2017the amount was 21,349.41 in crore which shows the percentage of
42.66.

Graph 7
Graph showing outstanding loans to corporate sector for the year 2014
- 2017.

26%
Outstanding loans to corporate sector
43%
2014 - 2015
2015 - 2016
2016- 2017

31%

INTERPRETATION:

From the above pie-chart it is inferred that there is constant growth in the
outstanding loans in corporate sector.

Table 8
Table showing outstanding loans to others which includes priority
sector for the year 2014 - 2017.

Year Amount (in crore) Percentage (%)

2014 - 2015 6,138.64 24.53

64
 2015 - 2016 8,763.02 35.03
2016- 2017 10,118.47 40.44
Total 25,020.14 100

ANALYSIS:
From the above table it is analyzed that when we compare the year 2014 – 2015 the
amount was 6,138.64 crore with 24.53%. In the year 2015 – 2016the amount was
8,763.02 crore with 35.03% and in the year 2016– 2017 the amount was 10,118.47 crore
with 40.44%.

Graph 8
Graph showing outstanding loans to others which includes priority
sector for the year 2014 - 2017.

Outstanding loan to others including priority sector

12000
10000
Amount in crore
8000
Percentage
6000
4000
2000
0
2014 - 2015 2015 - 2016 2016- 2017

INTERPRETATION:
From the above graph it can be inferred that there is a noticeable growth in the
outstanding loan by others which includes priority sector which is highly beneficial to the
bank.

Table 9
Table showing total outstanding loans to business sector for the year
2014 - 2017.

65
Year Amount (in Crore) Percentage (%)
2014 - 2015 22,640.45 26.16
2015 - 2016 28,151.68 32.55
2016- 2017 35,728.24 41.29
Total 86,520.37 100

ANALYSIS:
From the above table it is analysed that when we compare the year 2014 – 2015 the
amount outstanding was 22,640.45 crore which shows a percentage of 26.16. In the year
2015 – 2016the amount was 28,151.68 crore which shows the percentage of 32.55 and in
the year 2016– 2017 amount was 35,728.24 crore which shows the percentage of 41.29.

Graph 9
Graph showing outstanding loan to business sector for the year 2014 -
2017.

Outstanding loan to business sector

26%

41%

2014 - 2015
2015 - 2016
2016- 2017

33%

INTERPRETATION:
From the above graph it is inferred that there is a substantial growth in the outstanding
loan in business sector which concludes that it is highly advantageous to the bank for
their further financial improvement.

Table 10
Table showing total outstanding retail advances for the year 2014 - 2015
Year Amount (in Crore) Percentage (%)

66
 2014 - 2015 3,469.72 30.28
2015 - 2016 3,727.22 32.53
2016- 2017 4,260.36 37.19
Total 11,457.3 100

ANALYSIS:
From the above table it is concluded that when we compare the year 2014 – 2015 the
amount outstanding was 3,469.72 crore with 30.28%. In the year 2015 – 2016the
outstanding amount was 3,727.22 crore with 32.53% and in the year 2016– 2017 the
amount is 4,260.36 crore with 37.19%.

Graph 10
Graph showing total outstanding retail advances for the year 2014 –
2017.

Total outstanding of retail advances

4,500.00
4,000.00
3,500.00
3,000.00
2,500.00 Amount ( Rs. In crore)
Percentage
2,000.00
1,500.00
1,000.00
500.00
0.00
2014 - 2015
2015 - 2016
2016- 2017

INTERPRETATION:
From the above graph it can be inferred that there is a sequential growth year wise which
is highly beneficial to the ICICI Bank.

Table 11:

67
Table showing term loans for the years 2014 -2017
Year Amount (in Crore) Percentage (%)
2014 - 2015 13,983.65 30.28
2015 - 2016 19,200.56 32.53
2016- 2017 25,991.64 37.19
Total 59,175.85 100

ANALYSIS:
From the table it can be analysed that in the year 2014 – 2015 the amount is 13,983.65
crore with a percentage of 30.28. In the year 2015 – 2016the amount is 19,200.56 crore
with a percentage of 32.53 and in the year 2016– 2017 the amount is 25,991.64 crore
with a percentage of 37.19.

Graph 11
Graph showing term loan for the year 2014 - 2017

Teram loan

24%

44%
2014 - 2015
2015 - 2016
2016- 2017

32%

INTERPRETATION:
It can be inferred that there is continuous growth in the term loans provided by the bank
wherein the maximum growth is seen in the year 2016– 2017.

Table 12
68
 Table showing educational qualification of the loan borrowers
Particulars Number of respondent Percentage (%)
PUC 28 28
Graduate 54 54
Post- graduate 18 28
Total 100 100
ANALYSIS:

From the above mentioned table it can be analyzed that 28% have done PUC,
54% are graduate and 18% are post-graduate..

Graph 12
Graph showing educational qualification of the borrowers.

Educational qualification

60
50
40
30
20
10
0
PUC
Graduate
Post-graduate

Number of respondent percentage

INTERPRETATION:

From the above graph it can be inferred that maximum no. of respondents are
graduate where as minimum no. of respondent are post-graduate.

69
Table 13
Table showing break up of respondent--- age wise.

Age in years No. of respondent Percentage (%)

45 45
20 - 30
30 - 40 29 29
40 - 50 18 18
Above 50 8 8
Total 100 100

ANALYSIS:
From the above table it is seen that in there are 45 respondent in the age group of 20 –
30, 29 respondents fall in the age group of 30 – 40, 18 respondent in the age group of 40
– 50 and 8 respondent above the age group of 50.

Graph 13
Graph showing break up of respondent--- age wise.

Break up respondent-- age wise

45
40
35
30
25 No. of respondent
20 Percentage

15
10
5
0
20-30
30-40
40-50
Above 50

Interpretation:

70
From the above graph it can be inferred that the majority group of respondents belongs to
the age group of 20 – 30 followed by the age group of 30 – 40. The least no. of
respondents belongs to the age group above 50.

Table 14
Table showing break up of respondent--- gender wise.

Gender No. of respondent Percentage (%)

Male 88 88
Female 12 12
Total 100 100

ANALYSIS:
From the above table it is analysed that 88 respondent are males whereas only 12
respondents are females which shows the maximum no. of respondent were males.

Graph 14
Graph showing break up of respondent--- gender wise.

Break up of respondent--- gender wise

100
80 No. of respondent
60 Percentage

40
20
0
Male
Female

Interpretation:

71
From the above graph it is inferred that that the maximum no. of respondent are males
and female participation is less.

Table 15
Table showing break up of respondent --- occupation wise.
Occupation No. of respondent Percentage (%)
Government 35 35
Professional 15 15
Private 24 24
Business 26 26
Total 100
100

ANALYSIS:
From the above table it can be analysed that 35 of the respondents are government
employees, 15 are professional, 24 are in private and 26 belongs to the business .

Graph 15
Graph showing break up of respondent --- occupation wise.

Break up of respondent--- occupation wise

35

30

25 No. of respondent
Percentage
20

15

10

0
Government Professional Private Business

72
Interpretation:
From the above graph it can be inferred that bank major customer on the basis of
occupation are government employees.

Table 16
Table showing break up of respondent --- income wise.

Income (Rs.) No. of respondent Percentage (%)

Less than 50,000 20 20
50,000 – 1,00,000 28 28
1,00,000 – 1,50,000 48 48
Above 1,50,000 4 4
Total 100 100

ANALYSIS:
From the above mentioned table it can be concluded that there are 20 respondents
income is less than 50,000 ; 28 respondents falls in the income group of 50,000 –
1,00,000 ; 48 respondents in the income group of 1,00,000 – 1,50,0000 and 4
respondents falls in the income group above 1,50,000.

Graph 16
Graph showing break up of respondent --- income wise.

73
 Break up of respondent-- income wise

50
45
40
35
30
25
20
15
10
5
0
Less than 50,000 50,000 - 1,00,000 1,00,000 - 1,50,000 Above 1,50,000

No. of respondent Percentage

Interpretation:
It can be inferred that majority no. of respondent belongs to income group of 1,00,000 –
1,50,000 and the least is below 1,50,000.

Table 17
Table showing source of awareness
Source No. of respondent Percentage (%)
UBI employees 45 45
Magazine 35 35
Friends and television 12 13
Newspaper 8 8
Total 100 100

ANALYSIS:
From the above table it can be analysed that source of awareness of 45 respondents was
through UBI employees, 35 was through magazine; 12 was through friends and television
and 8 was through newspaper, 12 was through friends and television through

Graph 17
Graph showing source of awareness.

74
 Source of awareness

45
40
35
30
No. of respondent
25
Percentage
20
15
10
5
0
UBI employees
Magazine
Friends and
television Newspaper

INTERPRETATION:
It can be inferred that majority of the respondent came to know about the bank through
UBI employees followed by magazines, Friends and television and finally the least came
to know through newspaper.

Table 18
Table showing EMI paid by the borrower.

Amount No. of respondent Percentage (%)

Below 5,000 20 20
5,000 – 10,000 43 43
10,000 – 15,000 30 30
15,000 – 20,000 7 7
Total 100 100

ANALYSIS:
From the above table it can be analysed that below 5,000, 20 respondent paid EMI in
between 5,000 – 10, 000 , 43 in between 10,000 – 15,000 , 30 paid EMI and the least
EMI was paid in between 15,000 – 20,000.

Graph 18

75
 Graph showing EMI paid by the borrower

EMI paid by the borrower

20%

7%
30%
Below 5,000
5,000 - 10,000
10,000 - 15,000
15,000 - 20,000

43%

INTERPRETATION:
It can be inferred from the pie- chart that the majority no. of respondent who borrowed
EMI is in between 5,000 – 10,000 and the least EMI paid by the borrower is in between
15,000 – 20,000.

Table 19
Table showing loan amount borrowed by respondent.
Amount ( Rs.) No. of respondent Percentage (%)
Below 5,00,000 30 30
5,00,000 – 10,00,000 45 45
10,00,000 – 15,00,000 20 20
15,00,000 – 20,00,00 5 5
Total 100 100

ANALYSIS:
It can be analyzed from the above mentioned table that that there were 30 respondents
who borrowed amount of loan below 5,00,000 ; 45 between 5,00,000 – 10,00,000 ; 20
between 10,00,000 to 15,00,000 and there were only 5 respondents who borrowed above
15,00,000. – 20,00,000

Graph 19
76
 Graph showing loan amount borrowed by respondent

Loan amount borrowed by respondent

45
40
35
30
25 No. of respondent
20 Percentage
15
10
5
0
Below
5,00,000 5,00,000 -
10,00,000 10,00,000 -
15,00,000 15,00,000 -
20,00,000

INTERPRETATION:

From the above graph it can be interpreted that the maximum no. of amount
borrowed by respondent is in between 5,00,000 – 10,00,000 whereas the least of
amount borrowed by respondent is in between 15,00,000 – 20,00,000.

Table 20
Table showing satisfactory level of respondents with loan.
Satisfaction level No. of respondent Percentage (%)
Extremely satisfied 15 15
Satisfied 53 53
Moderate 25 25
Unsatisfied 7 7
Total 100 100
ANALYSIS:
From the above table an attempt was made to understand whether respondent feels that
the products offered by the bank were extremely satisfied, satisfied, moderate or
unsatisfied.

Graph20
Graph showing satisfactory level of respondents with loan.

77
 Satisfactory level of respondent

15%
25%
7%
extremely satisfied
Satisfied
Moderate
Unsatisfied

53%

INTERPRETATION:
It can be inferred from the pie-chart that that the maximum no. of respondent were
satisfied where least no. of respondent were unsatisfied.

78
Chapter – V

79
FINDINGS:

1. 45% of the loans taking customers are in between the age of 20 – 30 while
another 29% of customers are in between the age 30 – 40. 18% of the customers
belong to the 40 – 50 age categories while 8% are above the age of 50.
2. 88% of the loan takers are male while only 12% are female.
3. 35% of loan taking customer are working at the government sector, 15%
professional, 24% private and 26% customers are engaged in his / her own
business.
4. It can be observed that majority of customers are under the income group of
1,00,000 – 1,50,000 which is 48% followed by the income group of Rs. 50,000 –
1,00,000, at 28%. The group earning less than Rs. 50,000 owns 20% and at last
the income group of Rs. 1,50,000 and above owns 4%.
5. 45% of respondent are made aware about loan by UBI employee while 35% are
made aware by magazine. 13% and 7% of customer are made aware of UBI bank
by newspapers and friends.
6. Majority of the EMI was paid by the borrower in between 5,000 – 10,000 and
least EMI was paid by borrowed in between 20,000 – 30,000.
7. 30% of customer of UBI banks are taking loans below 5,00,000, While 45% are
taking between 5,00,00 – 10,00,000 , 20% are taking between 10,00,000 –
15,00,000 by 22% and only 5% borrowed in between 15,00,000 – 20,00,000.
8. 53% of the customers are satisfied with the loan amount while 25% are
moderately satisfied and 15% are extremely satisfied but 7% are unsatisfied.
9. It is also found that there is an impressive continuous growth in vehicle loan,
education loan and personal loans which is remarkably outstanding for the bank.
10. Home loan segment has a better increasing trend in coming years since it has a
high rate of demand in the current market.

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RECOMMENDATIONS:

1. The bank’s variety of loans and advances are unlimited but they are not
communicated well enough to customers. Hence, it is suggested to make
additional efforts to provide information to the customers about the range of loans
and advances

2. Attractive and competitive interest rates should be adopted since it is the main
factor considered for taking loans by the customers.

3. Since all the banks are providing loans with the same features. It is recommended
that bank should offer some unique features to its products to acquire strong
identity and can be easily distinguished.

4. At the present scenario, ICICI Bank should intensify their advertisement

campaign in order to gain new customers, make people aware of the new schemes
available to them and also take advantage of the current market.

5. Service level provided by the bank should be more efficient and effective for the
customer. The customers are very keen on the service provided by the bank. They
would rate it as one of the important factor while selecting the loans.

6. The bank should adopt attractive and competitive rate of interest in order to
induce customers to take personal loans and to attain more shares from its
competitors. This is also one of the critical factors for selecting the loans.

7. Increase in short- term lending such as cash credits, Overdraft and Loans
repayable on demand is most favourable to bank to earn short- term gain and
maintain liquidity.

8. A suggestion is made to the bank to expand the business globally and offer more
and more services to the people abroad.
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 9. Bank should follow guidelines towards priority sector and get benefits out of it.

10. Offer best customer services, lending on profitable ventures, diversifying the
business to cope with the competition.
11. Bank should use latest technologies in banking activities.
12. Few customer has not selected the branch because of less branches in southern
region compared to the other region.

CONCLUSION:

Human beings are no more constraint to the basic necessities in their lives. Their needs
have diversified through the ages placing an increase demand on resources. The
economic boom in the country has wide open the new challenges and opportunities to the
people. This has necessitated timely and easy availability of funds to meet the
requirements of institutions and individuals in meeting their goals. Thus to keep up with
the pace of this increasing demand, the banking industry have come forward with the
credit portfolio to provide funds on relatively easier terms and conditions. Today, banks
are committed towards providing more and more number of people with finance with a
view to make their lives better.

The ever increasing demands of the customers have forced the banking sectors to emerge
with new retail products bearing new unique features in them. The competition among
the banks cannot be neglected. They have been supplying loans for the purpose of
purchase of vehicles , pursue of higher education, or to meet their other personal
requirements.

The banking industry is witnessing a boom at present boosted by the

increasing demand for retail loan products. The demand has arisen as a result of genuine
individual needs. From an overall view point demand for retail loans is ever rising and

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the same would be reflected on the demand for funds. Hence the profitability of this
particular industry is expected to take a positive track in the future ahead.

BIBLOGRAPHY:

 A Hand Book of Banking by N. S. Toor

 Ramman Finance management.
 Finance management and policies by James C. Van Horne.
 Management accounting principle and practises by R. K. Sharma.
 Accounting for managers S. P Jain and K.L. Narang.
 Research methodology by C.R. Kothori.

 Business Research Methods by Appannaiah Reddy and Ramnath

WEBSITES:

www.icicibank.com
www.google.com
www.rbi.org.in
www.bankbazaar.com

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