CONTEMPORARY ISSUE REPORT ON

A CRITICAL CASE STUDY OF ICICI BANK BEFORE AND AFTER MERGER OF BANK OF RAJASTHAN

Submitted To: Mr .ANUPAM KRISHNA

Submitted By: HITESH DUA MBA(fms) II semester

International school of informatics and management

Session 2011-2013

CONTENTS
Sr. No. Subject Covered 1 2 3 4 5 7 Acknowledgements and declaration My project objective Executive summary History of Indian banking Introduction of ICICI BANK ICICI bank profile, history and financial details (before merger) Page No. 4 5 6 7 11 12

Introduction of bank of Rajasthan

19

The great Indian acquisition ICICI bank + bank of Rajasthan Technology used in ICICI Bank now that will be used by B.O.R customer Product and Customer segments of ICICI bank portfolio Swot analysis of ICICI bank

21

12 13 14

25 29 44

16 17 18 19 20

Company Efforts To retain B.O.R. customer base and employees by Its services Questionnaire Finding Conclusion Bibliography

47 48 51 56 57

ACKNOWLEDGEMENT Its my pleasant duty to acknowledge my sincere gratitude and hearitily thanks to all those who encouraged guided and helped me in the completion and refinement of this project report . I am thankful to our project head Mr. Anupam krishna sir for guiding me and encouraging me while working . My sincere thanks to my parents for their unconditional love and support and motivation. Finally , I thank all my friend who helped me and supported for entire period .

DECLARATION I HITESH DUA a student of international institute of management and informatics (FMS), hereby declare that all the information, facts and figures furnished in this report are based on my own findings this information has been used for purely academic purpose hereby declare the work was done by me and suitable information has been downloaded from websites and newspapers The project report is the result of my own hard work and self belief.

Hitesh dua MBA(fMS) IInd Semester

Research objective

1. To critically analyse working of ICICI BANK Ltd .before and after the acquisition of The bank of Rajasthan . 2 To study customer perception about ICICI BANK after acquisition of The Bank of Rajasthan. 3. To study how The Bank of Rajasthan acquisition will help ICICI bank to achieve its target of being profitable and number one . 4. TO study how the management of ICICI bank will utilize the assets and branch network of The bank of Rajasthan. 5. To study how ICICI bank will cop up with the old work culture of The bank of Rajasthan.

EXECUTIVE SUMMARY

Private banking is a concept which is new and fast emerging in the world of banking where changes have become a necessity in order for banks to survive in this competitive environment vis--vis not only from the public and private sector banks but also from the foreign banks. The objective of the research is to explore the various operational and marketing synergys in which a big bank treys to increase his customer base by acquisitions and merger. The merger of Bank of Rajasthan to ICICI bank is a example of the same which deals into and the systematic process involved to match client requirements with the right kind of product so they can be the customers first choice for banking. Through this research one of the main objectives is to explore the reason that what will be the benefits to ICIC bank after this aggressive acquisition ICICI started it in Aug 2002 and since then it has been a remarkable success. Today there are enormous solutions to cater client needs but what suits best to a client is where private banking fits in. Every client will have different needs, liking and preferences. So a customized portfolio for every client is the need of the day. This research will highlight more on the product portfolio of ICICI Private Banking, how things will change changed or innovatively structured to be attractive and competitive

HISTORY OF BANKING IN INDIA Without a sound and effective banking system in India it cannot have a healthy economy. The banking system of India should not only be hassle free but it should be able to meet new challenges posed by the technology and any other external and internal factors. For the past three decades India's banking system has several outstanding achievements to its credit. The most striking is its extensive reach. It is no longer confined to only metropolitans or cosmopolitans in India. In fact, Indian banking system has reached even to the remote corners of the country. This is one of the main reasons of India's growth process. The government's regular policy for Indian bank since 1969 has paid rich dividends with the nationalization of 14 major private banks of India. Not long ago, an account holder had to wait for hours at the bank counters for getting a draft or for withdrawing his own money. Today, he has a choice. Gone are days when the most efficient bank transferred money from one branch to other in two days. Now it is simple as instant messaging or dial a pizza. Money have become the order of the day. The first bank in India, though conservative, was established in 1786. From 1786 till today, the journey of Indian Banking System can be segregated into three distinct phases. They are as mentioned below: Early phase from 1786 to 1969 of Indian Banks Nationalization of Indian Banks and up to 1991 prior to Indian banking sector Reforms. New phase of Indian Banking System with the advent of Indian Financial & Banking Sector Reforms after 1991.

To make this write-up more explanatory, I prefix the scenario as Phase I, Phase II and Phase III.

Phase I The General Bank of India was set up in the year 1786. Next came Bank of Hindustan and Bengal Bank. The East India Company established Bank of Bengal (1809), Bank of Bombay (1840) and Bank of Madras (1843) as independent units and called it Presidency Banks. These three banks were amalgamated in 1920 and Imperial Bank of India was established which started as private shareholders banks, mostly Europeans shareholders. In 1865 Allahabad Bank was established and first time exclusively by Indians, Punjab National Bank Ltd. was set up in 1894 with headquarters at Lahore. Between 1906 and 1913, Bank of India, Central Bank of India, Bank of Baroda, Canara Bank, Indian Bank, and Bank of Mysore were set up. Reserve Bank of India came in 1935. During the first phase the growth was very slow and banks also experienced periodic failures between 1913 and 1948. There were approximately 1100 banks, mostly small. To streamline the functioning and activities of commercial banks, the Government of India came up with The Banking Companies Act, 1949 which was later changed to Banking Regulation Act 1949 as per amending Act of 1965 (Act No. 23 of 1965). Reserve Bank of India was vested with extensive powers for the supervision of banking in India as the Central Banking Authority. During those days public has lesser confidence in the banks. As an aftermath deposit mobilization was slow. Abreast of it the savings bank facility provided by the Postal department was comparatively safer. Moreover, funds were largely given to traders.

Phase II Government took major steps in this Indian Banking Sector Reform after independence. In 1955, it nationalized Imperial Bank of India with extensive banking facilities on a large scale especially in rural and semiurban areas. It formed State Bank of India to act as the principal agent of RBI and to handle banking transactions of the Union and State Governments all over the country. Seven banks forming subsidiary of State Bank of India was nationalized in 1960 on 19th July, 1969, major process of nationalization was carried out. It was the effort of the then Prime Minister of India, Mrs. Indira Gandhi. 14 major commercial banks in the country was nationalized. Second phase of nationalization Indian Banking Sector Reform was carried out in 1980 with seven more banks. This step brought 80% of the banking segment in India under Government ownership. The following are the steps taken by the Government of India to Regulate Banking Institutions in the Country: 1949: Enactment of Banking Regulation Act. 1955: Nationalization of State Bank of India. 1959: Nationalization of SBI subsidiaries. 1961: Insurance cover extended to deposits. 1969: Nationalization of 14 major banks. 1971: Creation of credit guarantee corporation. 1975: Creation of regional rural banks. 1980: Nationalization of seven banks with deposits over 200 crore.

After the nationalization of banks, the branches of the public sector bank India rose to approximately 800% in deposits and advances took a huge jump by 11,000%. Banking in the sunshine of Government ownership gave the public implicit faith and immense confidence about the sustainability of these institutions. Phase III This phase has introduced many more products and facilities in the banking sector in its reforms measure. In 1991, under the chairmanship of M Narasimham, a committee was set up by his name which worked for the liberalization of banking practices. The country is flooded with foreign banks and their ATM stations. Efforts are being put to give a satisfactory service to customers. Phone banking and net banking is introduced. The entire system became more convenient and swift. Time is given more importance than money. The financial system of India has shown a great deal of resilience. It is sheltered from any crisis triggered by any external macroeconomics shock as other East Asian Countries suffered. This is all due to a flexible exchange rate regime, the foreign reserves are high, the capital account is not yet fully convertible, and banks and their customers have limited foreign exchange exposure.

Introduction of ICICI bank

TYPE

PRIVATE, LISTED ON B.S.E. N.S.E.AND ON NYSE AS ADRS

FOUNDED :

IN 1955 AS INDUSTRIAL CREDIT AND AND INVESTMENT CORPORATION INDIA. ICICI BANK LTD. ICICI BANK TOWERS BANDRA KURLA MUMBAI MR.K.V.KAMATH (CHAIRMAN OF BOARAD BOARD OF DIRECTORS MS.CHANDRA D. KOCHAR (managing director and CEO )

HEADQUATER: KEY PEOPLE:

INDUSTRY:

BANKING , INSURANCE AND CAPITAL MARKET ALLIED BUSINESS

PRODUCTS:

BANKING, LOANS ,CREDIT CARDS AND INSURANCE ETC.

REVENUE:

US $ 896 MILLION ( RS .40.25 BILLION ) AFTER TAX FOR FOR THE YEAR ENDED 31-03-2010

TOTAL ASSETS:

Rs. 3,634.00 billion (US$ 81 billion) At 31-03-201

ICICI bank profile, history and financial details (before merger)

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, ICICI Bank Fact Files: Total assets: Rs. 3,634.00 billion (US$ 81 billion) at March 31, 2010 Network: ATMs in The Bank has a network of 2,529 branches and about 6,102

India, and has a presence in 19 countries, including India. .

Abroad subsidiaries : The Bank currently 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. Our UK subsidiary has established branches in Belgium and germany. Representative offices: United States, China, United Arab Emirates, and Bangladesh and South Africa. .

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 81 billion (at the end of March 2010), a network of over 2529 branches, about 6,102 ATMs (at the end of march 2010), 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 19 countries, including an offshore unit in Mumbai. This includes wholly owned subsidiaries in Canada, Russia and the UK (the subsidiary through which the high 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).

ICICI Bank has formulated a Code of Business Conduct and Ethics for its Directors and employees. At, ICICI Bank, with free float market capitalization of about Rs. 129,283.79 cores 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. Free float holding excludes all promoter holdings, strategic investments and Cross holdings among public sector entities.

BUSINESS OBJECTIVES

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 Indias 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. 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 across major stock markets of world.

Introduction of bank of Rajasthan

Bank is an establishment for the custody of money which it pays out on a customers order.Bank of Rajasthan, a leading Private Sector Bank, having branches all over India with prominent presence in Rajasthan and specialized forex, Industrial finance branches.The Bank is committed to the highest level of customer satisfaction though personalized, customer friendly and efficient services.Bank of Rajasthan, with its stronghold in the state of Rajasthan, has a nationwide presence, serving its customers with a mission of together we prosper engaging actively in commercial banking, Merchant Banking, Auxiliary services, consumer banking, deposit & money placement services, international banking, priority sector banking, Depository. History The Bank of Rajasthan ltd. was established at Udaipur, the city of lakes in Rajasthan on the auspicious day of Akshya Tritiya on May 8, 1943 and the credit goes to the then finance minister of Mewar Government, late Shri Rai Bahadur P.C. Chatterji.The Mansingka brothers of Bhilwara for establishing a joint stock bank with its registered office atUdaipur.

The bank was established with an initial capital of Rs. 10.00 lacs. Late Seth Shri Govind Ram Seksaria, an eminent Industrialist of the country, was the founder Chairman. The first Broad of Directors comprised such men of eminence as Shri Rai Bahadur Seth Rameshwarlal Ji Duduwala, Seth Shri Subhhag Mal Ji Lodha besides the Mansighka brothers, Seth Shri Pusa Lalji Mansighka and Seth Shri Damodar Lal ji Mansighka. The other members of the board were Major Rajadhiraj Amar Singhji of Banera and the then Accountant General of Mewar, Rai Bahadur lala Sukhdayalji. The promoters being very clear in their vision expressed their view that the word Rajasthan will be more advantageous in future for expanding activities in other princely states was expected under one Umbrella. As now is history, the individual princely states were merged under the final name for state Rajasthan. The naming of the bank, the bank of Rajasthan ltd., glaringly reflected the foresight of the promoters.

Products/ Line of Activity: The Banks line of activity is, of course, banking. It deals in various banking like Personal banking which includes accounts & deposits, loans & credit facilities, auxiliary services, Commercial banking which includes loans, Gold Card Scheme, Credit facilities to SMEs, DRS SME Scheme etc NRI banking

Internet banking. The bank deals in many products like Credit card, Demat services, Foreign exchange, Stamp franking, Mutual funds, Cash management services, NEFT, RTGS, e-payment, Western union money transfer, International debit cum ATM card, Banc assurance, Mobile Banking

The great Indian aqusition of bank of rajasthan by icici bank

It was high drama day when the news that bank of rajasthan will be be overtaken by icici bank floods in the market , BoR stock rose 19.95% on the Bombay Stock Exchange to close at Rs99.50, its year high,when this news came and after trading hours, the bank sent a release to the stock exchanges saying its board will meet in the evening to discuss a proposal of merging the bank with ICICI Bank. Boards of both banks met in the evening separately, and after the meeting ICICI Bank sent a release, saying, it has entered into an agreement with certain shareholders of Bank of Rajasthan agreeing to effect the amalgamation of Bank of Rajasthan with itself. ICICI Bank stock was down 1.45% to Rs889.35. when this news came Audit firm Haribhakti and Co. and Deloitte Haskins and Sells will assess the valuation of Bank of Rajasthan and the boards of both banks will meet on 23 May to seal the deal. The final determination of the share exchange ratio is subject to due diligence, independent valuation, ICICI Bank said.

share-swap in a non-cash deal that values the BoR at about Rs 3,000 crore.- After the approval of the deal by .the boards of the two banks, ICICI Bank Managing Director and CEO Chanda Kochhar said, "It is a win-win situation for shareholders. Just by dilution of three per cent of our equity, we will get Bank of Rajasthan and it will expand our network by one fourth." Announcing the deal, she said that the merger would be through offering 25 shares of ICICI for every 118 shares of BoR but its promoters Tayal Family which hitherto have over 50 per cent stake would not get a board seat in the amalgamated entity.

"Present ICICI Board would continue as it is," she said adding that the deal works out to about Rs 3,000 crore but "there is no cash outgo." It may be recalled that Bank of Rajasthan share prices nearly doubled in the last four trading sessions after the two lenders agreed in principle for the merger. She said shareholders' approval for the deal would be obtained at the Extraordinary General Meeting on June 21. "After this, we will move the Reserve Bank for its approval," she said adding that "as per our legal advise we do not need to go to the government for the approval of the Foreign Investment Promotion Board." When contacted BoR's dominant share holder Pravin Tayal, who was asked by RBI to dilute family's over 55 per cent equity to about 10 per cent, said that "no decision" has been taken on his representation in ICICI after the merger.

Mr Tayal, who hads ought one ICICI share for every three held by BoR Shareholders, said "I respect the amalgamation scheme decided by the Board." The two sides had jointed appointed Haribhakti and Company for valuation, Kochhar said, adding that ICICI Bank had sought internal valuation through Deloitte, whose recommendation appeared to have the day.

ICICI Bank Limited (IBN: 49.57 -0.79 -1.57%) received approval from the Reserve Bank of India (RBI) to acquire Bank of Rajasthan (BoR). RBI said that the merger was allowed in accordance with the Sub-section (4) of Section 44A of the Banking Regulation Act, 1949. With the integration of BoR, the total number of ICICI Bank branches will increase 25% to around 2,500 across the country. All branches of BoR will start functioning as branches of ICICI Bank effective August 13. The acquisition will also lead to an increase in the total turnover of the company, which is expected to cross INR4,000,000 crore (US$854 billion). On May 25, 2010 ICICI Bank and BoR announced the proposed merger and fixed a share swap ratio of 1:4.72. Hence, an investor with 118 shares of BoR will receive 25 equity shares of ICICI Bank.

While ICICI Bank had the merger approved in its June 20 ,2010 extraordinary general meeting, the BoR approval was an uphill task, with stiff resistance from its employees and legal hurdles. However, with the consent of the shareholders, both the parties had asked RBI for regulatory clearance on June 25. This will be the third acquisition for ICICI Bank following Bank of Madura in 2001 and Sangli Bank in 2007. The first acquisition helped the company to expand in south India while the second one in west India. The BoR acquisition will enable the company to further expand its footprints in western and northern India. Though we are concerned about ICICI Banks highly-competitive operating environment, we anticipate continued synergies from the companys global syndication network, cost containment measures and operational efficiency. The acquisition of BoR will further strengthen the companys revenue base and is expected to be accretive to earnings in the upcoming quarters.

The financial details of the acquisition The deal will be done is no-cash and share swap basis . The deal will be done in the ratio of 1:4:72 hence An investor with 118 shares of bank of Rajasthan will get The 25 shares of icici bank . According to the CEO and M.D. of ICICI bank ms .chanda d. kocchar said "It is a win-win situation for shareholders. Just by dilution of three per cent of our equity, we will get Bank of Rajasthan and it will expand our network by one fourth." And it will add 500 more

branches to the network of icici bank which will impact the bank in a very positive mode . but According to the Securities and Exchange Board of India, the Tayal family owned 55.01% of the bank in December, even though Tayal claimed his group stake was 28.06%. BoR has also been under the scanner of the Reserve Bank of India (RBI) for alleged violation of banking regulations, including those on corporate governance. But the tayals will not be able to sit in the board of directors of icici bank which is seemed to be taken positively by the investor of icici bank .

Technology used in ICICI Bank now that will be used by B.O.R customer
ICICI use many type of advance technological software like Pinnacle 7.0 and Pinnacle7.016.Among from this software ICICI bank uses the ebanking, 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 offbusiness 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. 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-toperformance 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. Manoj Kunkalienkar, Executive Director and President, ICICI Infotech, said that small and medium enterprises (SMEs) offered a good market and ICICI Infotech hoped to become a leading solution provider to this segment. 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 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. Mr. K.S. Natarajan, Managing Director, Trident Pneumatics Pvt Ltd of Coimbatore, one of the companies that had installed Orion Advantage, said that the company had tried three other ERP packages, all of which had failed, before settling on Orion Advantage. Mr Kunkalienkar said that ICICI InfoTech planned to move the two development centers in Chennai into a single location and double the staff strength from 300 now in the next two years. 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 skillsets, and technical knowhow. 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 Human Resources Accounts Receivable Payroll Benefits 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

Product & Services of ICICI BANK

In the era of globalization each and every sector faced the stiff competition from their rivals. And world also converted into the flat from the globe. After the policy of liberalization and RBI initiatives to take the step for the private sector banks, more and more changes are taking the part into it. And there are create competition between the private sector banks and public sector bank. Private sector banks are today used the latest technology for the different transaction of day to day banking life. As we know that Information Technology plays the vital role in the each and every industries and gives the optimum return from the limited resources. Banks are service industries and today IT gives the innovative Technology application to Banking industries. ICICI BANK is the leader in the industries and today IT and ICICI BANK together combined they reached the sky. New technology changed the mind of the customers and changed the queue concept from the history banking transaction. Today there are different channels are available for the banking transactions.

We can see that the how technology gives the best results in the below diagram. There are drastically changes seen in the use of Internet banking, in a year 2001 (2%) and in the year 2008 (25%). These type of technology gives the freedom to retail customers.

Centralized Processing Units

Derived

Economies

of

Electronic Straight Through Processing Data Warehousing , CRM Innovative Application Technology

Scale Reduced Transaction Cost

Improve cost efficiency, Cross sell Provide new or superior products

The countrys middle class accounts for over 320 million people. In correlation with the growth of the economy, rising income levels, increased standard of living, and affordability of banking products are promising factors for continued expansion.

ICICI Bank Product & Customer Segment: PERSONAL BANKING

Loan Product

Deposit Product

Investment & Insurance

 Auto Loan Loan Against Security Loan Against Property Personal loan Credit card 2-wheeler loan Commercial vehicles finance Home loans Retail business banking Tractor loan Working Capital Finance Construction Equipment Finance Health Care Finance Education Loan Gold Loan Cards

Saving a/c Current a/c Fixed deposit Demat a/c Safe Deposit Lockers

Mutual Fund Bonds Knowledge Centre Insurance General and Health Insurance Equity and Derivatives Mudra Gold Bar

Payment Services NetSafe Merchant Prepaid Refill Billpay

Access To Bank

Credit Card Debit Card Prepaid Card

NetBanking OneView InstaAlert MobileBanking

-------------------------------Forex Services ------------------------------- Product & Services Trade Services Forex service Branch Locater RBI Guidelines

Visa Billpay InstaPay DirectPay VisaMoney Transfer eMonies Electronic Funds Transfer Online Payment of Direct Tax

ATM Phone Banking Email Statements Branch Network

WHOLESALE BANKING Corporate Small and Medium Enterprises Funded Services Non Funded Services Specialized Services Value added services Internet Banking Financial Institutions and Trusts BANKS Clearing SubMembership RTGS submembership Fund Transfer ATM Tie-ups Corporate Salary a/c Tax Collection Financial Institutions

Funded Services Non Funded Services Value Added Services Internet Banking

Mutual Funds Stock Brokers Insurance Companies Commodities Business Trusts

NRI SERVICES

Accounts & Deposits Rupee Saving a/c Rupee Current a/c Rupee Fixed Deposits Foreign Currency Deposits Accounts for Returning Indians

Remittances North America UK Europe South East Asia Middle East Africa Others Quick remit IndiaLink Cheque LockBox Telegraphic/ Wire Transfer

Funds Transfer Cheques/DDs/TCs Investment & Insurances Mutual Funds Insurance Private Banking Portfolio Investment Scheme Payment Services NetSafe BillPay InstaPay DirectPay Visa Money Online Donation Loans Home Loans Loans Against Securities Loans Against Deposits Gold Credit Card

Access To Bank NetBanking OneView InstaAlert ATM PhoneBanking Email Statements Branch Network

ICICI Bank offers wide variety of Deposit Products to suit your requirements. Coupled with convenience of networked branches/ ATMs and facility of E-channels like Internet and Mobile Banking, ICICI Bank brings banking at your doorstep. Select any of our deposit products and

provide your details online and our representative will contact you for Account Opening.

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

SENIOR CITIZEN SERVICES We understand that as you reach the age to retire, you do have certain concerns whether your hard earned money is safe and secure whether your investments give you the kind of returns that you need. That's why we have an ideal Banking Service for those who are 60 years and above. The Senior Citizen Services from ICICI Bank has several advantages that are tailored to bring more convenience and enjoyment in your life. YOUNG STARS It's really important to help children learn the value of finances and money management at an early age. Banking is a serious business, but we make banking a pleasure and at the same time children learn how to manage their personal finances. FIXED DEPOSITS

Safety, Flexibility, Liquidity and Returns!!!! A combination of unbeatable features of the Fixed Deposit from ICICI Bank.

RECURRING DEPOSITS When expenses are high, you may not have adequate funds to make big investments. But simply going ahead without saving for the future is not an option for you. Through ICICI Bank Recurring Deposit you can invest small amounts of money every month that ends up with a large saving on maturity. So you enjoy twin advantages- affordability and higher earnings HOME LOAN The No. 1 Home Loans Provider in the country, ICICI Bank Home Loans offers some unbeatable benefits to its customers - Doorstep Service, Simplified Documentation and Guidance throughout the Process. It's really easy!

PERSONAL LOANS If you're looking for a personal loan that's easy to get, your search ends here. ICICI Bank Personal Loans are easy to get and absolutely hassle free. With minimum documentation you can now secure a loan for an amount up to Rs. 15 lakhs

CAR LOAN The NO 1 financier for car loans in the country. Network of more than 1500 channel partners in over 780 locations. Tieups with all leading automobile manufacturers to ensure the best deals. Flexible schemes & quick processing. Hasslefree application process on the click of a mouse. COMMERCIAL VEHICLE LOANS Range of services on existing loans & extended products like funding of new vehicles, refinance on used vehicles, balance transfer on high cost loans, top up on existing loans, Extend product, working capital loans & other banking products.

TWO WHEELER LOANS Avail attractive schemes at competitive interest rates from the No 1 Financier for Two Wheeler Loans in the country. Finance facility up to 90% of the On Road Cost of the vehicle, repayable in convenient repayment options and comfortable tenors from 6 months to 36 months. Ride home on your Dream Two Wheeler with our hassle free finance. FARM EQUIPMENT LOANS Preferred financier for almost all leading tractor manufacturers in the country. Flexible repayment options in tandem with the farmer's seasonal liquidity. Monthly, Quarterly and Half-yearly repayment patterns to choose

from. Comfortable repayment tenures from 1 year to 9 year

CREDIT CARDS ICICI Bank Credit Cards give you the facility of cash, convenience and a range of benefits, anywhere in the world. These benefits range from life time free cards, Insurance benefits, global emergency assistance service, discounts, utility payments, travel discounts and much more. DEBIT CARDS The ICICI Bank Debit Card is a revolutionary form of cash that allows customers to access their bank account around the clock, around the world. The ICICI Bank Debit Card can be used for shopping at more than 100,000 merchants in India and 13 million merchants worldwide. TRAVEL CARD Presenting ICICI Bank Travel Card. The Hassle Free way to Travel the world. Traveling with US Dollar, Euro, Pound Sterling or Swiss Francs; Looking for security and convenience; take ICICI Bank Travel Card. Issued in duplicate. Offers the Pin based security. Has the convenience of usage of Credit or Debit card. PRE PAID CARDS ICICI Bank brings to you a complete bouquet of pre-paid cards providing payment solutions at your fingertips. ICICI

Bank pre-paid cards are a safe & convenient way for associate payments, disbursements, gifting & small ticket transactions. Pre-paid cards are available on a VISA platform thus providing accessibility to over one lakh merchant establishments & cash withdrawal from all VISA ATMs in India. Investments s

At ICICI Bank, we care about all your needs. Along with Deposit products and Loan offerings, ICICI Bank assists you to manage your finances by providing various investment options ranging from ICICI Bank Tax Saving Bonds to Equity Investments through Initial Public Offers and Investment in Pure Gold. ICICI Bank facilitates following investment products: ICICI Bank Tax Saving Bonds Government of India Bonds Investment in Mutual Funds Initial Public Offers by Corporate Investment in "Pure Gold" Foreign Exchange Services Senior Citizens Savings Scheme, 2004 You can invest in above products through any of our branches. For select products ICICI Bank also provides the ease of investing through electronic channels like ATMs and Internet (ICICIdirect.com)

ICICI Bank Bonds

All ICICI Bank Bonds have been rated "AAA" by CARE and "LAAA" by ICRA indicating the highest degree of safety for your money All Investment in ICICI Bank Tax Saving Bonds issued up to March 2005 are eligible for tax rebate under Sec 88 to the full extent possible Bonds are listed on BSE, NSE GOI Bonds

8% Savings Bonds (Taxable), 2003 Low risk. Reasonable investment tenure. Nomination facility available. Cannot be traded in secondary market. Interest income taxable. Mutual Funds

Mutual Funds pool money of various investors to purchase a wide variety of securities while pursuing a specific goal. Selection of Securities for the purpose is done by specialists from the field. Returns generated are distributed to the Investors. Mutual Fund Companies offer various schemes. Investors can choose any particular Fund/Scheme or mix of Funds/Schemes depending upon their perception towards risk. Investment is done on the basis of prevailing Net Asset Values of various schemes. Mutual Funds Investments are subject to Market Risks. Types of Funds Sold

We will help you determine which types of funds you need to meet your investment goals. This may include the following types of funds: Debt: Liquid schemes, Income schemes, G-sec schemes, Monthly Income Schemes etc. Equity: Diversified Equity Schemes, Sector Schemes, Index Schemes etc. Hybrid Funds: Balanced Schemes, Special Schemes - Pension Schemes, Child education Schemes etc. At ICICI Bank we will help you identify an appropriate mix of Mutual Fund schemes for your portfolio using asset allocation strategies. Through ICICI Bank you can invest in various schemes of multiple mutual funds with decent performance record. You can take the aid of our various research reports on mutual funds and their schemes before choosing a scheme for investment. ICICI Bank offers investment in Mutual Funds through Multiple Channels. With ICICI Bank, you can invest in Mutual Funds through following channels. ICICI Bank Branches ICICIdirect.com Dedicated workforce to serve you Before being deputed, our officers complete a comprehensive training program and, once deputed, they receive thorough instructions in financial planning skills and techniques. Throughout their careers officers also attend programs to update their skills. All officers in charge of Mutual Funds are certified professionals by AMFI (Association of Mutual Funds in India)

Many of these officers also hold professional degrees like MBA, CA, ICWA, and CFA etc.

IPO:

You can invest in IPOs online through www.icicidirect.com with same convenience of investing in equities - hassle-free and with zero paper work. Also, get in-depth analyses of new IPOs issues (Initial Public Offerings) which are about to hit the market. IPO calendar, recent IPO listings, prospectus/offer documents and live prices will help you keep on top of the IPO markets.

ICICI Bank Pure Gold

Gold has been traditionally the most favored form of investment for Indians. In fact, India, even today is amongst the highest consumers of Gold in the world. However, the Gold market remains largely unorganized with reliability and convenience remaining the key issues for gold buyers in the country.ICICI Bank with its `Pure Gold' offer attempts to bridge the gap between the need of the customers for buying gold and availability of an organized avenue to satisfy that need, by taking care of the two key components - Reliability and Convenience. Reliability 24 Carat ICICI Bank Pure Gold is imported from Switzerland. This Gold carries a 99.99% Assay Certification, signifying highest level of purity, as per international standards.

Convenience ICICI Bank Pure Gold is competitively priced based on daily prices in the international bullion market. Currently, gold is available in 2.5g, 5g, 8g, 20g and 50g categories.

FOREX Services

ICICI Bank's Foreign Exchange Services will help you organize your foreign exchange in the most hassle free manner. Whether its Foreign Currency, Travelers Cheques or Travel Card, ICICI Bank Foreign Exchange Services is a one-stop solution to your foreign exchange requirement.

S.W.O.T. analysis of ICICI BANK (after merger)

Introduction to SWOT Analysis.

The overall evaluation of the companys Strength, Weakness, Opportunities and Threats is called as SWOT Analysis. The external environment analysis of any business will give you the opportunities and threats facing the business. The external environment consists of two parts:

1) Macro Environment: Demographic, Economic, Technology, Politicallegal, Socio-cultural 2) Micro Environment: Customers, Competition, Distributors, Suppliers. The Internal Environment Analysis will give you the strength and weakness of the business.

STRENGTH Right strategy for the right products. Superior customer service vs. competitors. Great Brand Image Products have required accreditations. High degree of customer satisfaction. Good place to work Lower response time with efficient and effective service. Dedicated workforce aiming at making a long-term career in the field. . the number of branches will go up by 500 .so bank will have the large customer base now.

Opportunities

Threats

Profit margins will be good. Could extend to overseas broadly. New applications. Could seek customer deals. specialist better

Legislation could impact. Great risk involved Very high competition prevailing in the industry. Vulnerable to reactive

attack by major competitors

Fast-track career development opportunities on an industry-wide basis. An applied research centre to create opportunities for developing techniques to provide added-value services.

Lack of infrastructure in rural areas could constrain investment. High volume/low cost market is intensely competitive. The image of bank of Rajasthan in big investors in not good

Company Efforts To retain B.O.R. customer base and employees by Its services After the acquisition the first and the foremost challenge to the icici bank will be to retain the customer base that bank of Rajasthan has . due to old cultural work style of bank of Rajasthan the people were not really very happy with the services so as per the service standard icici bank has a better name in this segment so to retain the customer base company would not have to make some extra effort just they have to be serve the people and employees as they were doing in the past .so all the thing which the company has to do is to give servise for which they are famous for nothing extraordinary has to be done or neither it is needed for this merger. this is a indeed a brave astep taken by icici bank which they have to respect by there performance and it will help them to achieve there target to be the leading bank in the country and in the world .

Questionnaire (used in the research )

Name : _____________________________________ Address :_____________________________________ Age : _____________________________________

Email address :_________________________________ 1. ICICI bank is a leading bank in private banking sector. How do you feel after becoming a customer of ICICI bank? A. Highly satisfied C. No change B. Satisfied D. Dissatisfied E. highly dissatisfied 2. from how long you were a customer of Bank of Rajasthan ? A. <1 year C. 3-5 years B. 1-3years D. >5 years 3. According to you, which bank serves its customer in a better way? A. ICICI Bank( ) B. Bank of rajasthan ( ) 4. According to you which bank's products are more favorable to the customers? A. ICICI ( ) B. Bank of rajasthan 5. After merger, what procedural difficulties did you face while getting converted from Bank of Rajasthan to ICICI customer ? _____________________________________________________ 6. In which bank do you feel your money was/is safer ? A.ICICI Bank ( ) B. Bank of rajasthan ( )

7. According to you which bank's brand image is better ? A. ICICI Bank B.Bank of rajasthan

8. Customer relationship management of which bank is better ? A. ICICI Bank B.Bank of rajasthan

9. Have you ever come across any dispute/problem related to services rendered by ICICI Bank ? If YES. Please specify___________________________________ 10.How promptly yours problems are solved in ICICI bank ? A. Very quickly C. not solved E. very slow 11. Working hours of which bank makes you convenient to bank with A. ICICI Bank B.Bank of rajasthan B. quickly D. slow

12. How do yoou see the employees of ICICI bank towards their customers A. very cooperative C. not cooperative B. cooperative D. highly uncooperative

13. After merger would you like to continue banking with ICICI? YES,i will continue If no. please specify_________________________________ 14. which bank ATm transaction service was/is more users friendly? A. ICICI Bank B.Bank of rajasthan

15.What changes have you felt after becoming a customers of ICICI bank? __________________________________________________________ __________________________________________________________ 16.Are youusing the same services which you were using in bank of rajasthan or you availed any new service from ICICI bank? No change ( ) if new service then please specify______________________________ if new service along with the previous one.please specify____________ 17.As a customer how do you rate the two banks on the basis of product category on a scale of 1-5? Product category BOR ICICI BANK

Deposit schemes Loans Personal loan Vehicle loan Home loan Education loan Net banking services

18.Are you using the facility of lockers in ICICI bank? A. ( ) Yes B. ( ) No

19.prioritize the factor that you consider before selecting a bank. Interest rate Minimum balance Accessibility Procedural ease Brand name service performance

20. On a scale of 1-5, rate ICICI and Bor on these factor.

Factor Interest rate Minimum balance Accessibility Procedural ease Brand name service performance

BOR

ICICI

Findings

ICICI bank is a leading bank in banking sector. How do you feel after becoming a customer of ICICI bank
0% 2% 11%

36%

highly satisfied satisfied no change dissatisfied highly dissatisfied

51%

From how long you were a custoner of bank of rajasthan

4% 7%

<1 year 34% 1-3 year 3-5 year >5year 55%

Accoarding to you which bank seves its customer in a better way

0% 0%

31%

Bank Of Rajasthan ICICI Bank

69%

Accoarding to you which bank's product are more favourable to the customer
0% 0%

33% Bank Of Rajasthan ICICI Bank

67%

In Which Bank do you feel your money was/ is safer?

0% 0%

40% Bank Of Rajasthan ICICI Bank

60%

Accoarding to you which brand image is better?

0% 0%

16%

Bank of Rajasthan ICICI Bank

84%

Customer relationship management of which bank is batter

0% 0% 11%

Bank Of Rajasthan ICICI Bank

89%

Have You Come across any problem related to service rendered by ICICI Bank
0% 0%

16%

Yes No

84%

How promptly your problems are solved in ICICI Bank

0% 7% 20%

0%

Very Quickly Quickly Not Solved Slow Very Slow

73%

Working hours of which bank make you convenient to bank with?

0% 0% 11%

Bank Of Rajasthan ICICI Bank

89%

How Do You see the employee Of ICICI Bank towards their customer

0% 0%

16%

Very cooperative Cooperative Not Cooperative Highly Uncooperative

84%

After merger would you like to continue banking with ICICI

0% 0%

Yes No

4th Qtr

100%

Which Bank ATM transaction service was/is more users friendly

0% 0% 8%

ICICI Bank Bank Of Rajasthan

92%

Are you using the facility of locker in ICICI Bank

0% 0%

18%

Yes No

82%

CONCLUSION After the acquisition the first and the foremost challenge to the icici bank will be to retain the customer base which bank of Rajasthan has . due to old cultural work style of bank of Rajasthan the people were not really very happy with the services so as per the service standard icici bank has a better name in this segment so to retain the customer base company would not have to make some extra effort just they have to be serve the people and employees as they were doing in the past .so all the thing which the company has to do is to give service for which they are famous for nothing extraordinary has to be done or neither it is needed for this merger. this is a indeed a brave a step taken by icici bank which they have to respect by there performance and it will help them to achieve there target to be the leading bank in the country and in the world .and to conclude this as a recommendation I will like to say that this merger is bit expensive for icici but at large this merger will help ICICI bank to grow in long term and it will help to build and extensive network of 463 branches ,which would have been required a long time frame and infrastructure .so this acquisition will help ICICI bank he to be the leading bank in the country .

Bibliography 1. Times of India (newspaper) 2. The economic times (newspaper) 3. www.ndtv profit .com 4. www.rediff Indian stocks.com 5. www.icicibank.com 6. www.wikipedia.com