ICICI BANK LTD

Understanding context, structure and effectiveness

MDI GURGAON
2022-24

ORGANISATIONAL DESIGN AND CHANGE

Submitted by - GROUP 04 PGDM-C

Anusha Goel (22P133)

Lagan Poddar (22P149)

Sanya Kulshrestha (22P162)

Sara Palnitkar (22P163)

Shimona Gupta (22P167)

Shweta Rohatgi (22P169)

 INDEX

S.no Title Page No

1 Introduction 2

2 KSF 3

3 Stakeholder Analysis 4

4 External Challenges 5

5 Internal Structure Analysis 6

6 Internal structure changes 7

7 Changes in processes/reward systems/culture 8

8 Recommendations on managing the change process 9

9 References 10
10 Exhibits 11

1
INTRODUCTION

Company- ICICI BANK ltd was founded in 1994 in India as a wholly-owned subsidiary of Industrial
Credit and Investment Corporation of India (ICICI) Limited and today is a leading private sector
multinational bank offering wide range of banking and financial services to its customers. The
services include retail, corporate and investment banking, wealth management, insurance, digital
banking features like the digital wallets, mobile and internet banking.
The bank operated through a wide network of branches, ATM, regional offices, business units making
its offerings accessible to large client base (5000+ branches, 15000+ ATMs). The branches, ATM and
business unit cater to retail, corporate and investment banking and wealth management and the
regional offices focus on operational efficiency and innovation.
The bank focuses on increasing consumer stickiness and thus offers 360 degree financial services in
the most innovative and efficient manner possible (exhibit 1). It is long known for its investment in
innovation and technology to provide customers with convenient and better banking experience. The
bank has also made name for strong risk management practices and corporate governance standard
and won awards for commitment to its employees and customers (exhibit 2).
ICICI Bank has done well in recent years in terms of efficacy, with a good financial position and
consistent development. The bank has continuously recorded excellent earnings, and its emphasis on
risk management, innovation, and customer service has significantly benefited its financial success. 
The bank is well-positioned to continue providing value to its clients and stakeholders in the years to
come thanks to a strong structure and a dedication to excellence.

Industry-There are many different kinds of financial institutions in the Indian banking sector,
including public sector banks, private sector banks, foreign banks, regional rural banks, and
cooperative banks. By providing individuals, businesses, and government agencies with financial
services, the industry contributes significantly to the Indian economy. The RBI is in charge of
ensuring the stability of individual banks and the financial system as a whole.
In recent years, technological advancements and increased competition have led to greater innovation
and efficiency in the Indian banking sector. Banks now offer a wide range of products and services,
including savings accounts, current accounts, loans, credit cards, and digital banking, making the
industry more customer-centric.
However, the Indian banking industry also faces difficulties such as inadequate capitalization,
operational inefficiencies, and high levels of non-performing assets (NPAs). External shocks, such as
shifts in the global economy or government policies, also put the industry at risk. In general, the
banking sector in India is a dynamic and constantly changing one that is essential to the economic
growth of the nation.

2
Scope of Report- The context, structure, and efficiency of ICICI Bank's regional office in Connaught
Place, Delhi is examined in this report. The purpose of the report is to provide an overview of the
bank's structure, operations, and performance at this level. Particular attention will be paid to
comprehending the manner in which the bank is organized and managed in order to accomplish its
strategic objectives.
The scope of the report includes an examination of the bank's performance in terms of financial
stability, risk management, innovation, and customer service as well as an examination of the
structure of the bank, which includes its regional offices, branches, business units, and support
functions. The report likewise considers outside elements, for example, industry patterns,
administrative climate, and rivalry, to give an extensive perspective on the bank's exhibition and
possibilities. The insights into the success factors and environmental analysis are gained through
personal interviews with employees at ICICI Bank CP branch. (exhibit 3)
The report is planned to give experiences and proposals to partners of ICICI Bank, including its
supervisory group, workers, investors, clients, and administrative bodies. Researchers, students, and
other professionals who are interested in the Indian banking industry and the performance of banks at
the regional/country office level may also find it useful.

KEY SUCCESS FACTORS

 Customer Experience: In order to succeed in the banking sector, it is essential to provide an

outstanding customer experience.
“ICICI Bank aims to achieve zero in on conveying an uncommon client experience by
offering many items and administrations that address the issues of its assorted client base”-
Girish Sehgal
 Innovation and Technology: Innovation and technology have become crucial KSFs for
banks in light of the rise of digital banking and attain differentiation. In order to enhance its
digital banking capabilities and provide its customers with a seamless and convenient banking
experience, ICICI Bank has made significant investments in technology in the past.
“My constant work is to understand the problems and loop holes in my product to make it
notch better. I remember standing at the door only to understand how clients react to various
technology used in the system and what is not easy to comprehend”- Abhishek Yadav
 Risk Management: In order to avoid financial losses, banks must effectively manage their
risks because they operate in a high-risk environment. In order to guarantee the safety and
security of the investments and deposits of its customers, ICICI Bank needs to concentrate on
developing robust risk management procedures.

3
 “Its not just the risk of theft, fraud and cybercrime, with a branch like wealth management
and investment banking there comes multiple other risks associated with the operations that
needs to be looked upon”- Shipra Mendidstra
 Talent Management: In order to succeed in the banking sector, you need a workforce that is
both skilled and enthusiastic. To maintain its position as market leader, ICICI Bank must
focus on attracting, retaining, and developing top talent.
“It all starts with human interaction and ends at Humans. We are awarded AmbitionBox Best
Places to Work in India Award 2022 and we look forward to attracting good talent and groom
them better”- Tapansha Singh
 Compliance with Regulations: The banking industry can't function without adhering to all of
the rules and regulations. By adhering to the various banking industry laws, regulations, and
guidelines, ICICI Bank must concentrate on maintaining regulatory compliance.
“It is bottom line and its often said – work within the framework or you will get framed”-
Vishal Awasthi
 Brand Image: In the banking industry, attracting and keeping customers requires a strong
brand image. By providing consistent, high-quality service and increasing customer trust,
ICICI Bank must concentrate on building and maintaining a strong brand image.
“I must feel proud to say I am an ICICian”- Digvijay Pratap Singh

STAKEHOLDERS AND EXPECTATIONS

Based on the telephonic interviews and branch visit discussions we have concluded the following as
the list of stakeholders at ICICI bank and have also listed their expectations.
 Customers: One of ICICI Bank's most important stakeholders is its clientele. Clients
anticipate that the bank should furnish them with a large number of monetary items and
administrations that address their issues. Additionally, customers expect the bank to provide
an exceptional customer experience, respond to their inquiries and concerns, and ensure the
safety of their investments and deposits.
 Shareholders: ICICI Bank shareholders put money into the company with the hope of getting
a return on their investment. They anticipate that the bank will maintain its steady financial
performance, boost profitability, and distribute dividends. Additionally, shareholders expect
the bank to uphold sound corporate governance practices and guarantee operational
transparency.(exhibit 4)
 Employees: The employees of ICICI Bank are important stakeholders who help the bank
succeed. Representatives anticipate that the bank should give a protected and sound

4
 workplace, fair pay and advantages, potential open doors for profession development and
improvement, and acknowledgment for their commitments.
 Regulators: ICICI Bank must adhere to numerous laws, regulations, and guidelines because
it operates in a highly regulated industry. The bank is expected to comply with regulations,
effectively manage risks, and uphold high corporate governance standards.
 Society: ICICI Bank has a significant impact on society as a large financial institution. The
society expects the bank to support social causes and initiatives, act responsibly, and
contribute to the country's overall economic growth and development.
 Suppliers: Suppliers expect ICICI Bank to treat them fairly and ethically, maintain good
business relationships, and pay their bills on time.
 Local Communities: ICICI Bank is expected to support community development initiatives,
contribute to the local economy, and create jobs. They also expect the bank to follow local
laws and customs and behave responsibly as a business.

Stakeholder Effectiveness Analysis

Even though the bank attempts to secure trust and belief of all its stakeholders they may sometimes
fail to satisfy them for the following reasons-
Customers: The bank's fees and charges, customer service, or the quality of its products and services
may not please all of its customers. Additionally, they may be dissatisfied with the bank's response to
their complaints or concerns about data security and privacy.
“Recently we witnessed a customer who suffered a loss of 15 lakhs in Portfolio invested”- Shipra
“Last month a lady lost 4 lakhs in credit card theft and misuse issues” – Vishal Awasthi
“A client had EDD marked on account due to which the funds were frozen for 2 months”- Digvijay
Shareholders: The bank's financial performance may be disappointing to some shareholders,
resulting in lower profits or a decrease in share price. They might also be unhappy with the
management team's strategic decisions or the bank's corporate governance practices.

Rest apart, the employees are satisfied with the organisation norms and the organisation is effectively
able to comply to societal and local communities expectations.

EXTERNAL CHALLENGES

ICICI Bank's operations and business performance are impacted by a number of external obstacles.
ICICI Bank faces a number of significant external obstacles, including:
 Intensity and nature of competition: India's banking sector is highly competitive, with
several large public and private sector banks vying for market share. Non-bank financial

5
 institutions, as well as domestic and foreign banks, compete fiercely with ICICI Bank. The
bank's market share, pricing strategies, and customer acquisition and retention can all be
affected by competition.
 Cybersecurity risks: Cyberattacks, data breaches, and fraud are just a few of the
cybersecurity risks that ICICI Bank faces as a large financial institution. To safeguard the
confidential information of its customers and maintain their trust, the bank must make
significant investments in cybersecurity measures and maintain robust risk management
procedures.
 Regulatory environment: Changes in government policies and regulations can have an effect
on ICICI Bank's operations, capital requirements, and compliance costs because the bank
operates in a highly regulated environment. Anti-money laundering, know-your-customer, and
other regulations must also be followed by the bank.
 Technological disruption: Digital banking, mobile banking, and fintech innovations are just
a few examples of the technological advancements that are causing the banking sector to
undergo rapid change. It is difficult for ICICI Bank to keep up with technological
advancements while simultaneously offering its customers a seamless and convenient banking
experience.
 Economic and political environment: The profitability, credit quality, and loan growth of
the bank can be affected by economic conditions like GDP growth, inflation rates, and interest
rates. Customer behavior, demand for financial products and services, and investment
opportunities can all be impacted by shifts in macroeconomic factors.
 Customers, both current and prospective, shifts in profile and expectations: ICICI Bank
must constantly adjust to shifting demographics, customer segments, and customer needs and
preferences. Additionally, customers may have different expectations of the bank, such as
convenience, openness, and personalized services.
 Changes in workforce profiles and expectations: The bank needs to keep awake to-date
with changes in the assumptions and profiles of its labor force. This incorporates drawing in
and holding skilled representatives, offering serious pay bundles, and giving chances to
vocation advancement and development.

THE INTERNAL ORGANISATIONAL STRUCTURE AND ANALYSIS

The internal structure of ICICI Bank is mentioned in Exhibit 5. ICICI Bank's current organizational
structure has both advantages and disadvantages when it comes to dealing with external obstacles.
The advantages and disadvantages are discussed as follows:

6
Strengths:

• Diversified model of business: ICICI Bank has an expanded plan of action that
incorporates retail banking, corporate banking, and abundance the executives. The bank is
able to adjust its focus on various market segments in response to market conditions,
which aids it in managing external challenges related to economic conditions and
competition.
• Technology spotlight: In order to provide customers with innovative and convenient
banking services, ICICI Bank has made significant investments in technology. The bank
has been able to stay competitive in a banking industry that is changing quickly thanks to
its focus on technology.
• Strong risk control: To deal with external obstacles related to regulatory compliance and
credit quality, ICICI Bank has a solid risk management framework in place. The bank has
a deep rooted credit risk the board framework and follows strong enemy of tax evasion
and hostile to misrepresentation strategies.

Weaknesses:

• Centralized control over decisions: ICICI Bank's current organizational structure is

highly centralized, with most decisions made at the top. As a result, decisions may be
made more slowly and responses to external obstacles may be less flexible.
• Inattention to customer-centricity: While ICICI Bank has been putting resources into
innovation to improve client experience, the bank may not be completely client driven in
its authoritative plan. This might restrict the bank's capacity to answer changing client
assumptions and inclinations.
• Restricted spryness: The organizational structure of ICICI Bank may limit its
adaptability to external challenges. Due to the bank's large workforce and hierarchical
structure, it may be challenging for the institution to swiftly adapt to shifting market
conditions.
• Unclear chain of command: the wealth RM have to report to manager and investment
head both and both would want to prioritise their personal targets. This may result in
inappropriate cross selling and mismanagement of client profiling

CHANGES IN STRUCTURE

ICICI Bank may contemplate a more customer-centric organizational design and a more decentralized
decision-making procedure to overcome these flaws and capitalize on its strengths. The bank would

7
be able to better respond to external challenges and meet the changing needs of its customers as a
result of this. In addition, in order to better attract, retain, and develop a workforce that is more
diverse, skilled, and adaptable and capable of addressing the external challenges it faces, ICICI Bank
may need to review its talent management and development procedures.
• Decentralized decision-making: In order to respond to external challenges more quickly
and effectively, ICICI Bank may need to consider adopting a more decentralized decision-
making structure. This might entail giving local business units and branches more
freedom to make decisions based on the needs of customers and the local market.
• Customer-centric design: ICICI Bank could implement an organizational structure that
is more focused on the needs and preferences of its customers at every level.
Implementing agile methodologies to enhance product and service delivery and
establishing cross-functional teams to identify and address customer pain points could be
examples of this.
• Agile and diverse workforce: In order to attract, retain, and develop a more diverse,
skilled, and adaptable workforce that is capable of addressing the external challenges it
faces, ICICI Bank may need to review its talent management and development
procedures. Implementing a culture of innovation and experimentation, providing training
and development opportunities, and implementing flexible working arrangements are all
examples of this.
• Robust risk management: To mitigate external challenges related to regulatory
compliance and credit quality, ICICI Bank could continue to strengthen its risk
management framework. This could entail making an investment in cutting-edge
technologies for risk management, increasing accountability and transparency, and
carrying out routine audits and reviews.
• Strategic alliances: ICICI Bank could likewise investigate key associations with fintech
new companies and other monetary organizations to use their aptitude and assets. In the
rapidly changing banking landscape, this could assist the bank in remaining competitive
and adaptable.

CHANGES IN PROCESSES/REWARD SYSTEMS/CULTURE

• Coordinated and Agile processes: It's possible that ICICI Bank needs to implement
agile processes that encourage adaptability and quick decision-making. The bank can
benefit from agile methodologies like scrum and kanban to speed up product development
and delivery, shorten time to market, and increase customer satisfaction.
• Performance based reward framework: ICICI Bank might have to carry out an
exhibition based reward framework that adjusts representative motivations to the bank's

8
 essential targets. Key performance indicators (KPIs) that compare employee performance
to specific goals and objectives may be required by the bank.
• A culture focused on innovation: It may be necessary for ICICI Bank to cultivate a
culture of innovation that encourages workers to think creatively, test out novel concepts,
and take calculated risks. To assist employees in their efforts to innovate, the bank may
need to provide them with the necessary resources, such as time, tools, and training.
• A customer-first culture: It's possible that ICICI Bank needs to establish a culture that is
focused on the needs of its customers and prioritizes their satisfaction. It's possible that
the bank needs to establish reward systems and teams that are focused on customers and
place a high value on their loyalty and satisfaction.
• A culture of collaboration: It may be necessary for ICICI Bank to cultivate a
collaborative culture that encourages knowledge sharing, cross-functional
communication, and teamwork. In order to increase the effectiveness and efficiency of the
organization, the bank may need to encourage departmental and team collaboration and
break down silos.

RECOMMENDATIONS ON MANAGING THE CHANGE PROCESS

• Establish a team to manage change: ICICI Bank has the ability to form a dedicated
team to oversee the change process. This team can collaborate with various organization
stakeholders to ensure the organization's alignment with the desired outcomes and the
smooth implementation of the changes.
• Create a strategy for managing change: ICICI Bank can effectively manage the change
process with the assistance of a structured change management plan. The objectives of the
changes, the method by which they will be implemented, and the outcomes that are
anticipated should all be clearly outlined in this plan's timeline, key performance
indicators, and communication strategy.
• Stakeholders should be informed: Viable correspondence is critical to guarantee partner
purchase in and support for the changes. To communicate with stakeholders, ICICI Bank
can use town hall meetings, email updates, and one-on-one meetings. The correspondence
system ought to likewise consider the different partner gatherings and their particular
worries.
• Offer assistance and instruction: ICICI Bank ought to give preparing and backing to
representatives to assist them with adjusting to the new changes. This could entail giving
employees access to training materials, coaching, and mentoring to make sure they have
the knowledge and skills they need to work well in the new organizational design.

9
 • Keep an eye on and assess the change process: ICICI Bank may be able to identify and
address any issues that arise during the implementation with the assistance of regular
monitoring and evaluation of the change process. This can be accomplished by providing
stakeholders with feedback and regular progress reports.

In conclusion, careful planning, effective communication, employee training and support, as well as
ongoing monitoring and evaluation are all necessary for managing the change process. ICICI Bank
can ensure a smooth transition to its new organizational design and enhance its capacity to effectively
respond to external challenges and stakeholder objectives by following these recommendations.

REFERENCES

1. ICICI Bank about us: Awards. India. (n.d.). Retrieved April 2, 2023, from
https://www.icicibank.com/aboutus/awards#:~:text=ICICI%20Bank%20has%20received
%20two,for%20financial%20year%202021%2D22.

2. ICICI Stack. ICICI stack for Corporate Ecosystem. (n.d.). Retrieved April 2, 2023, from
https://www.icicibank.com/ms/corporate/icicibankstack/Corporate_Stack.html#:~:text=Pr
ovides%20a%20host%20of%20solutions,and%20an%20easy%20transaction
%20experience.
3. ICICI Bank shareholding pattern. The Economic Times. (n.d.). Retrieved April 2, 2023,
from https://economictimes.indiatimes.com/icici-bank-ltd/shareholding/companyid-
9194.cms

4.

10
EXHIBIT 1

Fig 1: 360 degree offerings by ICICI Bank Ltd Source: ICICI Stack

EXHIBIT 2

11
 Fig 2 : Latest Awards ICICI Bank Source: ICICI Bank about us

EXHIBIT 3

Fig 3: People Interviewed for the study

12
EXHIBIT 4

Fig 4: Shareholding Pattern at ICICI Bank. Source: ICICI Bank shareholding pattern

EXHIBIT 5

Fig 5: The organisational structure of ICICI CP branch Source: Respondents and Discussions

13