ICICI Ban

ICICI Bank is an Indian multinational banking and financial services company headquartered in Vadodara. As of 2014 it is the second largest bank in India in terms of assets and market capitalization. It offers a wide range of banking products and financial services for corporate and retail customers through a variety of delivery channels and specialized subsidiaries in the areas of investment banking, life, non-life insurance, venture capital and asset management. The Bank has a network of 3,800 branches and 11,162 ATMs in India, and has a presence in 19 countries. ICICI Bank is one of the Big Four banks of India, along with State Bank of India, Punjab National Bank and Bank of Baroda.

The bank has subsidiaries in the United Kingdom, Russia, and Canada, branches in United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International Finance Centre, and representative offices in United Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia. The company’s UK subsidiary has also established branches in Belgium and Germany. In March 2013, Operation Red Spider showed high-ranking officials and some employees of ICICI Bank involved in money laundering. After a government inquiry, ICICI Bank suspended 18 employees and faced penalties from the Reserve Bank of India in relation to the activity.

ICICI Bank was established by the Industrial Credit and Investment Corporation of India (ICICI), an Indian financial institution, as a wholly owned subsidiary in 1994. The parent company was formed in 1955 as a joint-venture of the World Bank, India’s public-sector banks and public-sector insurance companies to provide project financing to Indian industry. The bank was initially known as the Industrial Credit and Investment Corporation of India Bank, before it changed its name to the abbreviated ICICI Bank. The parent company was later merged with the bank.

ICICI Bank launched internet banking operations in 1998.

ICICI’s shareholding in ICICI Bank was reduced to 46 percent, through a public offering of shares in India in 1998, followed by an equity offering in the form of American Depositary Receipts on the NYSE in 2000. ICICI Bank acquired the Bank of Madura Limited in an all-stock deal in 2001 and sold additional stakes to institutional investors during 2001-02.

In the 1990s, ICICI transformed its business from a development financial institution offering only project finance to a diversified financial services group, offering a wide variety of products and services, both directly and through a number of subsidiaries and affiliates like ICICI Bank. In 1999, ICICI become the first Indian company and the first bank or financial institution from non-Japan Asia to be listed on the NYSE.

In 2000, ICICI Bank became the first Indian bank to list on the New York Stock Exchange with its five million American depository shares issue generating a demand book 13 times the offer size.

In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger of ICICI and two of its wholly owned retail finance subsidiaries, ICICI Personal Financial Services Limited and ICICI Capital Services Limited, with ICICI Bank. The merger was approved by shareholders of ICICI and ICICI Bank in January 2002, by the High Court of Gujarat at Ahmedabad in March 2002 and by the High Court of Judicature at Mumbai and the Reserve Bank of India in April 2002.

In 2008, following the 2008 financial crisis, customers rushed to ICICI ATMs and branches in some locations due to rumours of adverse financial position of ICICI Bank. The Reserve Bank of India issued a clarification on the financial strength of ICICI Bank to dispel the rumours.

ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian FINANCIAL institution, and was its wholly-owned subsidiary. ICICI’s shareholding in ICICI Bank was reduced to 46% through a public offering of shares in India in fiscal 1998, an equity offering in the form of ADRs listed on the NYSE in fiscal 2000, ICICI Bank’s acquisition of Bank of Madura Limited in an all-stock amalgamation in fiscal 2001, and secondary MARKET sales by ICICI to institutional investors in fiscal 2001 and fiscal 2002. ICICI was formed in 1955 at the initiative of the World Bank, the Government of India and representatives of Indian industry. The principal objective was to create a development FINANCIAL institution for providing medium-term and long-term project financing to Indian businesses.

In the 1990s, ICICI transformed its business from a development financial institution offering only project finance to a diversified financial services group offering a wide variety of products and services, both directly and through a number of subsidiaries and affiliates like ICICI Bank. In 1999, ICICI become the first Indian company and the first bank or financial institution from non-Japan Asia to be listed on the NYSE.

After consideration of various corporate structuring alternatives in the context of the emerging competitive scenario in the Indian banking industry, and the move towards universal banking, the managements of ICICI and ICICI Bank formed the view that the merger of ICICI with ICICI Bank would be the optimal strategic alternative for both entities, and would create the optimal legal structure for the ICICI group’s universal banking strategy.

The merger would enhance value for ICICI shareholders through the merged entity’s access to low-cost deposits, greater opportunities for earning fee-based income and the ability to participate in the payments system and provide transaction-banking services. The merger would enhance value for ICICI Bank shareholders through a large capital base and scale of operations, seamless access to ICICI’s strong corporate relationships built up over five decades, entry into new business segments, higher MARKET share in various business segments, particularly fee-based services, and access to the vast talent pool of ICICI and its subsidiaries.

In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger of ICICI and two of its wholly-owned retail finance subsidiaries, ICICI Personal Financial Services Limited and ICICI Capital Services Limited, with ICICI Bank. The merger was approved by shareholders of ICICI and ICICI Bank in January 2002, by the High Court of Gujarat at Ahmedabad in March 2002, and by the High Court of Judicature at Mumbai and the Reserve Bank of India in April 2002. Consequent to the merger, the ICICI group’s financing and banking operations, both wholesale and retail, have been integrated in a single entity.

ICICI Bank has formulated a Code of Business Conduct and Ethics for its directors and employees.

Ms. Chanda Kochhar
Managing Director and Chief Executive Officer, ICICI Bank Limited

Ms. Chanda Kochhar is the Managing Director and Chief Executive Officer of ICICI Bank Limited, India’s second-largest bank and the largest in the private sector. She is widely recognised for her role in shaping the retail banking sector in India and for her leadership of the ICICI Group, as well as her contributions to various forums in India and globally.

Ms. Kochhar began her career, with erstwhile ICICI Limited in 1984 and was elevated to the Board of Directors of ICICI Bank in 2001. She was instrumental in establishing ICICI Bank during the 1990s, and subsequently headed the infrastructure finance and corporate banking business in ICICI Limited. In 2000, she took on the challenge of building the nascent retail business, with strong focus on technology, innovation, process reengineering and expansion of distribution and scale. The Bank achieved a leadership position in this business. During 2006-2007, she successfully led the Bank’s corporate and international banking businesses during a period of heightened activity and global expansion by Indian companies.

From 2007 to 2009, she was the Joint Managing Director & Chief FINANCIAL Officer during a critical period of rapid change in the global financial landscape. She was elevated as Managing Director & CEO of ICICI Bank in 2009 and is responsible for the Bank’s diverse operations in India and overseas. She also chairs the boards of the Bank’s principal subsidiaries, which include India’s leading private sector life and general insurance companies.

In addition to her responsibilities at the ICICI Group, Ms. Kochhar is a member of the Prime Minister’s Council on TRADE & Industry, the Board of Trade, High-Level Committee on Financing Infrastructure, US-India CEO Forum and UK-India CEO Forum. She is a member of the boards of the Indian Council for Research on International Economic Relations, National Institute of Securities Markets, Institute of International Finance and International Monetary Conference. She was co-chair of the World Economic Forum’s Annual Meeting in 2011.

She was conferred with the Padma Bhushan, one of India’s highest civilian honours, in 2011. Awards and Recognition
2014
Named among Fortune’s 50 most powerful women in business for the fourth consecutive year.

2013
Received the ‘Mumbai Women Of The Decade’ award by ASSOCHAM. Awarded as the Best CEO – Private Sector category at the Forbes India Leadership Awards 2013. Ranked as the most powerful woman in business in India for the third consecutive year in Fortune’s list of ’50 Most Powerful Women In Business: The Global 50′. She is also among the four most powerful women in business in the world, according to the list.

Conferred the “AIMA JRD Tata Corporate Leadership Award” 2012. Recipient of the 4th Asian Corporate Director Recognition Awards 2013. Ranked as the most powerful business woman in India in the Forbes list of ‘The World’s 100 Most Powerful Women 2013’. Received the ‘Transformation Leader Award’ by NDTV Profit Business Leadership Awards 2012. Featured for the third year in a row in the Power List 2013 of 25 most powerful women in India, by India Today. Is the only Indian to be featured in the Dow Jones list of Most Influential Female Executives in the World of the last decade. She is ranked 12th in the global list. Awarded the Businessperson Of The Year 2012 by Business India. She is the first woman recipient of this award in 31 years.

2012
Topped the list of “50 Most Powerful Women in Business” by Fortune India. Ranked 18th in Fortune’s list of ‘2012 Businesspersons of the Year’. This is Fortune’s annual ranking of 50 global leaders who are “the best in business”. Ranked fifth, for the second consecutive year, in Fortune’s international list of “50 Most Powerful Women in Business.” Ranked 59th in the World’s 100 Most Powerful Women by Forbes. Named amongst the nine Indian women in the Forbes’ inaugural “Asia Power Businesswomen” list. Ranked fifth in the list of the “Most Powerful CEOs” in India by The Economic Times and first in the list of “Top Women CEOs” in the country. Conferred with CNBC Asia’s India Business Leader of the year award and CSR award. Named the “Business Person of the Year” by Business India

Named amongst the “25 most powerful professional women” in the country by India Today for the second year.

2011
Ranked fifth by Fortune in the International list of “50 Most Powerful Women in Business”. Ranked 17th among the “25 Most Powerful CEOs” in Asia by Fortune. Ranked 43rd “Most Powerful Woman” in the world by Forbes.

Named among the “50 most influential people in global finance” by Bloomberg MARKETS magazine. Named among the “two best Indian CEOs “in an annual poll by Finance Asia. Ranked 10th by FINANCIAL Times in the “Top 50 Women in World Business”. Received the “Global Leadership Award” from the US-India Business Council. Named “Most Powerful Woman in Indian Business” by Fortune India. The first woman to be named as the “Business Leader of the Year” by The Economic Times. Featured in the “Hall Of Fame – Most Powerful Women in Indian Business” by Business Today. Conferred with the “Transformational Business Leader of the Year”, award by All India Management Association.

2010
Ranked 10th in the list of “Most Powerful Women in Business” by Fortune. Ranked 92nd in the list of “Most Powerful Women” in the world by Forbes. Conferred with the “Outstanding Woman Business Leader of the Year” award by CNBC TV18. Conferred with the “Banker of the Year Award” by FINANCIAL Express. Featured in the list of “30 Most Powerful Women Leaders” in Business Today for eight consecutive years from 2002 to 2010.

Acquisitions:

1996: SCICI Ltd. A diversified financial institution with headquarters in Mumbai 1997: ITC Classic Finance. Incorporated in 1986, ITC Classic was a non-bank financial firm that engaged in hire, purchase, and leasing operations. At the time of being acquired, ITC Classic had eight offices, 26 outlets, and 700 brokers. 1998: Anagram Finance. Anagram had built up a network of some 50 branches in Gujarat, Rajasthan, and Maharashtra that were primarily engaged in retail financing of cars and trucks. It also had some 250,000 depositors. 2001: Bank of Madurai

2002: The Darjeeling and Shimla branches of Grindlays Bank
2005: Investitsionno-Kreditny Bank (IKB), a Russian bank
2007: Sangli Bank. Sangli Bank was a private sector unlisted bank, founded in 1916, and 30% owned by the Bahte family. Its headquarters were in Sangli in Maharashtra, and it had 198 branches. It had 158 in Maharashtra and 31 in Karnataka, and others in Gujarat, Andhra Pradesh, Tamil Nadu, Goa, and Delhi. Its branches were relatively evenly split between metropolitan areas and rural or semi-urban areas. 2010: The Bank of Rajasthan (BOR) was acquired by the ICICI Bank in 2010 for INR 30 billion. RBI was critical of BOR’s promoters not reducing their holdings in the company. BOR has since been merged with ICICI Bank.

ICICIs role in Indian financial infrastructure:
The bank has contributed to the setup of a number of Indian institutions to establish financial infrastructure in the country over the years. National Stock Exchange – The National Stock Exchange was promoted by India’s leading financial institutions (including ICICI Ltd.) in 1992 on behalf of the Government of India with the objective of establishing a nationwide trading facility for equities, debt instruments and hybrids, by ensuring equal access to investors all over the country through an appropriate communication network. Credit Rating Information Services of India Limited (CRISIL) – In 1987, ICICI Ltd along with UTI set up CRISIL as India’s first professional credit rating agency. CRISIL offers a comprehensive range of integrated products and service offerings which include credit ratings, capital market information, industry analysis and detailed reports.

National Commodities and Derivatives Exchange Limited – NCDEX is an online multi-commodity exchange, set up in 2003, by ICICI Bank Ltd, LIC, NABARD, NSE, Canara Bank, CRISIL, Goldman Sachs, Indian Farmers Fertiliser Cooperative Limited (IFFCO) and Punjab National Bank. Financial Innovation Network and Operations Pvt Ltd. – ICICI Bank has facilitated setting up of “FINO Cross Link to Case Link Study” in 2006, as a company that would provide technology solutions and services to reach the underserved and underbanked population of the country. Using cutting edge technologies like smart cards, biometrics and a basket of support services, FINO enables financial institutions to conceptualise, develop and operationalise projects to support sector initiatives in microfinance and livelihoods.

Entrepreneurship Development Institute of India – Entrepreneurship Development Institute of India (EDII), an autonomous body and not-for-profit society, was set up in 1983, by the erstwhile apex financial institutions like IDBI, ICICI, IFCI and SBI with the support of the Government of Gujarat as a national resource organisation committed to entrepreneurship development, education, training and research. North Eastern Development Finance Corporation – North Eastern Development Finance Corporation (NEDFI) was promoted by national level financial institutions like ICICI Ltd in 1995 at Guwahati, Assam for the development of industries, infrastructure, animal husbandry, agri-horticulture plantation, medicinal plants, sericulture, aquaculture, poultry and dairy in the North Eastern states of India.

NEDFI is the premier financial and development institution for the North East region. Asset Reconstruction Company India Limited – Following the enactment of the Securitisation Act in 2002, ICICI Bank together with other institutions, set up Asset Reconstruction Company India Limited (ARCIL) in 2003, to create a facilitative environment for the resolution of distressed debt in India. ARCIL was established to acquire non-performing assets (NPAs) from financial institutions and banks with a view to enhance the management of these assets and help in the maximisation of recovery. This would relieve institutions and banks from the burden of pursuing NPAs, and allow them to focus on core banking activities.

Credit Information Bureau of India Limited – ICICI Bank has also helped in setting up Credit Information Bureau of India Limited (CIBIL), India’s first national credit bureau in 2000. CIBIL provides a repository of information (which contains the credit history of commercial and consumer borrowers) to its members in the form of credit information reports. The members of CIBIL include banks, financial institutions, state financial corporations, non-banking financial companies, housing finance companies and credit card companies. Institutional Investor Advisory Services India Limited (IiAS) – ICICI Bank has indirectly invested in Institutional Investor Advisory Services, through ICICI Prudential Life Insurance Company, in IiAS. IiAS is a voting advisory firm aka proxy firm, dedicated to providing participants in the Indian market with data, research and commentary. It provides recommendations on resolutions placed before shareholders of over 300 companies.