ICICI Bank
 |
| Type |
Private
BSE & NSE:ICICI, NYSE: IBN |
| Founded |
1955 (as Industrial Credit and Investment Corporation of India) |
| Headquarters |
ICICI Bank Ltd.,
ICICI Bank Towers,
Bandra Kurla,
 Mumbai, India |
| Key people |
N Vaghul, K.V.Kamath, Chanda Kochhar, V Vaidyanathan, Madhabi Puri |
| Industry |
Bank ing
Insurance
Capital Markets and allied industries |
| Products |
Loans, Credit Cards, Savings, Investment vehicles, Insurance etc. |
| Revenue |
▲ USD 5.79 billion |
| Total assets |
Rs. 3,997.95 billion (US$ 100 billion) at March 31, 2008. |
| Website |
ICICI Bank |
ICICI Bank (BSE: ICICI) (formerly Industrial Credit and Investment Corporation of India) is India's largest private sector bank in market capitalization and second largest overall in terms of assets. Bank has total assets of about USD 100 billion (at the end of March 2008), a network of over 1,399 branches, 22 regional offices and 49 regional processing centres, about 4,485 ATMs (at the end of September 2008), and 24 million customers (at the end of July 2007). ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and specialised 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. [1]. ICICI Bank has got its equity shares listed on the stock exchanges at Kolkata and Vadodara, Mumbai and the National Stock Exchange of India Limited, and its ADRs on the New York Stock Exchange (NYSE).
The Bank is expanding in overseas markets and has the largest international balance sheet among Indian banks. ICICI Bank now has wholly-owned subsidiaries, branches and representatives offices in 18 countries, including an offshore unit in Mumbai. This includes wholly owned subsidiaries in Canada, Russia and the UK, 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 reported a 1.15% rise in net profit to Rs. 1,014.21 crore on a 1.29% increase in total income to Rs. 9,712.31 crore in Q2 September 2008 over Q2 September 2007.
ICICI Bank HQ at BKC Mumbai
History
History of ICICI
1955: The Industrial Credit and Investment Corporation of India Limited (ICICI) was incorporated at the initiative of World Bank, the Government of India and representatives of Indian industry, with the objective of creating a development financial institution for providing medium-term and long-term project financing to Indian businesses. Mr.A.Ramaswami Mudaliar is elected as the first Chairman of ICICI Limited.
- ICICI emerges as the major source of foreign currency loans to Indian industry. Besides funding from World Bank and other multi-lateral agencies, ICICI was also among the first Indian companies to raise funds from international markets.
1956: ICICI declared its first dividend, of 3.5%.
1958: Mr.G.L.Mehta appointed the second Chairman of ICICI Ltd.
1960: ICICI building at 163, Backbay Reclamation, inaugurated.
1961: The first West German loan of DM 5 million from Kredianstalt obtained.
1967: ICICI made its first debenture issue for Rs.6 crore, which was oversubscribed.
1969: The first two regional offices set up in Calcutta and Madras.
1972: ICICI becomes the second entity in India to set up merchant banking services.
- Mr. H. T. Parekh appointed the third Chairman of ICICI.
1977: ICICI sponsored the formation of Housing Development Finance Corporation and manages its first equity public issue.
1978: Mr. James Raj appointed the fourth Chairman of ICICI.
1979: Mr.Siddharth Mehta appointed the fifth Chairman of ICICI.
1982: ICICI became the first ever Indian borrower to raise European Currency Units.
- ICICI commences leasing business.
1984: Mr. S. Nadkarni appointed the sixth Chairman of ICICI.
1985: Mr. N.Vaghul appointed the seventh Chairman and Managing Director of ICICI.
1986: ICICI became the first Indian institution to receive ADB Loans.
- ICICI, along with UTI, set up Credit Rating Information Services of India Limited, India's first professional credit rating agency.
- ICICI promotes Shipping Credit and Investment Company of India Limited.
- The Corporation made a public issue of Swiss Franc 75 million in Switzerland, the first public issue by any Indian entity in the Swiss Capital Market.
1987: ICICI signed a loan agreement for Sterling Pound 10 million with Commonwealth Development Corporation (CDC), the first loan by CDC for financing projects in India.
1988: Promoted TDICI - India's first venture capital company.
1993: ICICI Securities and Finance Company Limited in joint venture with J. P. Morgan set up.
- ICICI Asset Management Company set up.
1994: ICICI Bank set up.
1996: ICICI Ltd became the first company in the Indian financial sector to raise GDR.
- SCICI merged with ICICI Ltd.
- Mr. K.V.Kamath appointed the Managing Director and CEO of ICICI Ltd
1997 : ICICI Ltd was the first intermediary to move away from a single prime rate structure to a three-tier prime rates structure and introduced yield-curve-based pricing.
- The name "The Industrial Credit and Investment Corporation of India Ltd" changed to "ICICI Ltd."
- ICICI Ltd. announced the takeover of ITC Classic Finance.
1998: A new logo symbolizing the common corporate identity for the ICICI Group was introduced.
- ICICI announced takeover of Anagram Finance.
1999 : ICICI launched retail finance - car loans, home loans and loans for consumer durables.
- ICICI becomes the first Indian company to get listed on the NYSE through an issue of American Depositary Shares.
2000 : ICICI Bank became the first commercial bank from India to get its stock listed on the NYSE.
- ICICI Bank announces merger with Bank of Madura.
2001: The Boards of ICICI Ltd and ICICI Bank approved the merger of ICICI Ltd. with ICICI Bank.
2002: ICICI Ltd merged with ICICI Bank Ltd to create India’s second-largest bank in terms of assets.
- ICICI assigned higher than "Sovereign" rating by Moody’s.
- ICICI Bank launched India’s first CDO (Collateralised Debt Obligation) Fund named Indian Corporate Collateralised Debt Obligation Fund (ICCDO Fund).
- "E-Lobby", a self-service banking centre and a first of its kind in India, is inaugurated in Pune.
- ICICI Bank launched Private Banking.
- A 1,100-seat Call Centre for Customer Care by phone and e-mail was set up in Hyderabad.
- ICICI Bank Home Shoppe, the first-ever permanent aggregation and display of housing projects in the county, launched in Pune.
- ATM-on-Wheels, India’s first mobile ATM, launched in Mumbai.
2003: The first Integrated Currency Management Centre launched in Pune.
- ICICI Bank announced the setting up of its first-ever offshore branch in Singapore.
- The first offshore banking unit (OBU) at SEEPZ Special Economic Zone, Mumbai, was launched.
- ICICI Bank’s representative office inaugurated in Dubai.
- Representative office set up in China.
- ICICI Bank’s UK subsidiary launched.
- India’s first ever "Visa Mini Credit Card", a credit card 43% smaller in dimensions was launched.
- A subsidiary of ICICI Bank was set up in Canada.
- Temasek Holdings acquired 5.2% stake in ICICI Bank.
- ICICI Bank became the market leader in retail credit in India.
2004: Max Money, a home loan product that offers the dual benefit of higher eligibility and affordability to a customer, introduced.
- Mobile banking service in India launched in association with Reliance Infocomm.
- India’s first multi-branded credit card with HPCL and Airtel launched.
- Kisan Loan Card and innovative, low-cost ATMs were launched in rural India.
- ICICI Bank and CNBC TV 18 announced India’s first ever awards recognizing the achievements of SMEs, a pioneering initiative to encourage the contribution of Small and Medium Enterprises to the growth of the Indian economy.
- ICICI Bank opened its 500th branch in India.
- ICICI Bank introduced partnership model wherein ICICI Bank would forge an alliance with existing micro finance institutions (MFIs). The MFI would undertake the promotional role of identifying, training and promoting the micro-finance clients and ICICI Bank would finance the clients directly on the recommendation of the MFI.
- ICICI Bank introduced 8 to 8 Banking wherein all the branches of the Bank would remain open from 8a.m. to 8 p.m. from Monday to Saturday.
- ICICI Bank introduced the concept of floating rate for home loans in India.
2005: First rural branch and ATM launched in Uttar Pradesh at Delpandarwa, Hardoi.
- "Free for Life" credit cards launched wherein annual fees of all ICICI Bank Credit Cards were waived off.
- ICICI Bank and Visa jointly launched mChq – a revolutionary credit card on the mobile phone.
- Private Banking Masters 2005, a nationwide Golf tournament for high networth clients of the Private Banking division launched. This event is the largest domestic invitation amateur golf event conducted in India.
- Becomes the first Indian company to make a simultaneous equity offering of $1.8 billion in India, the United States and Japan.
- Acquired IvestitsionnoKreditny Bank of Russia.
- ICICI Bank became the largest bank in India in terms of its market capitalization.
- ICICI Bank became the first private entity in India to offer a discount to retail investors for its follow-up offer.
2006: ICICI Bank became the first Indian bank to issue hybrid Tier-1 perpetual debt in the international markets.
- ICICI Bank subsidiary set up in Russia.
- Introduced a new product - ‘NRI smart save Deposits’ – a unique fixed deposit scheme for nonresident Indians.
- Representative offices opened in Thailand, Indonesia and Malaysia.
- ICICI Bank became the largest retail player in the market to introduce a biometric enabled smart card that allow banking transactions to be conducted on the field. A low-cost solution, this became an effective delivery option for ICICI Bank’s micro-finance institution partners.
- Financial counseling centre Disha launched. Disha provides free credit counseling, financial planning and debt management services.
- Bhoomi puja conducted for a regional hub in Hyderabad, Andhra Pradesh.
2007: ICICI Bank makes a USD 2 billion three-tranche international bond offering, which becomes the largest bond offering by an Indian bank.
- Sangli Bank was amalgamated with ICICI Bank.
- ICICI Bank raised Rs 20,000 crore (approx $5 billion) from domestic and international markets through a follow-on public offer.
- ICICI Bank’s GBP 350 million international bond offering marked the inaugural deal in the sterling market from an Indian issuer and also the largest deal in the sterling market from Asia.
- Launched India’s first ever jewellery card in association with jewellery major Gitanjali Group.
- ICICI Bank became the first bank in India to launch a premium credit card -- The Visa Signature Credit Card.
- The foundation stone for a regional hub in Gandhinagar, Gujarat was laid.
- ICICI Bank introduced SME Toolkit, an online resource centre, to help small and medium enterprises start, finance and grow their business.
- ICICI Bank signed a multi-tranche dual currency US$ 1.5 billion syndication loan agreement in Singapore.
- ICICI Bank became the first private bank in India to offer both floating and fixed rate on car loans, commercial vehicles loans, construction equipment loans and professional equipment loans.
- In a first-of-its-kind, nation wide initiative to attract bright graduate students to pursue a careers in banking, ICICI Bank launched the "Probationary Officer Programme".
- Launched Bank@Home services for all savings and current account customers residing in India
- ICICI Bank Eurasia LLC inaugurated its first branch at St Petersburg, Russia.
2008: ICICI Bank enters USA, launches its first branch in New York
- ICICI Bank enters Germany, opens its first branch in Frankfurt
- ICICI Bank launched iMobile, a breakthrough innovation in banking where practically all Internet banking transactions can now be done easily on the mobile phone.
- ICICI Bank concluded India's largest ever securitization transaction of a pool of retail loan assets aggregating to Rs. 48.96 billion (equivalent of USD 1.21 billion) in a multi-tranche issue backed by four different asset categories. It is also the largest deal in Asia (ex-Japan) in 2008 till date and the second largest deal in Asia (ex-Japan and Australia) since the beginning of 2007.
- ICICI Bank launches ICICIACTIVE-Banking Interactive Service - along with DISH TV, which will allow viewers to see information about the Bank's products and services and contact details on their DISH TV screens.
- ICICI Bank and British Airways launch a co-branded credit card, designed to earn cardholders accelerated reward points with every British Airways flight or by spending on everyday purchases
Controversy
ICICI Bank has been in focus in recent years because of alleged harassment of customers by its recovery agents.[original research?] Listed below are some of the related news links:
- Farmers vent ire on bank after suicide. ICICI Bank officials used goondas to seize the tractor [2]
- ICICI Bank was fined Rs. 55 lakh for hiring goons (known coloquially as "goondas") to recover a loan. Recovery agents had ,allegedly, forcibly dragged out a youth (who was not even the borrower) from the car, beaten him up with iron rods and left him bleeding as they drove away with the vehicle. "We hold ICICI Bank guilty of the grossest kind of deficiency in service and unfair trade practice for breach of terms of contract of hire-purchase/loan agreement by seizing the vehicle illegally,""No civilised society governed by the rule of law can brook such kind of conduct" said Justice J D Kapoor, president of the consumer commission.[3][4][5][6] [7][8][9][10]
- Four ICICI loan employees arrested on theft charges in Punjab [11]
- ICICI Bank told to pay Rs. 1 lakh as compensation for using unlawful recovery methods. [12]
- RBI warns ICICI Bank for coercive methods to recover loans[13][14]
- ICICI Bank drives customer to suicide - Four men including an employee of ICICI Bank booked under sections 452, 306, 506 (II) and 34 of IPC for abetting suicide [15]. According to the suicide note they advised him, "If you cannot repay the bank loan, sell off your wife, your kids, yourself, sell everything at your home. Even then if you cannot not pay back the due amount, then it's better if you commit suicide."[16] India biggest private bank has compensated the life by money [17]
- ICICI Bank on huge car recovery scam in Goa - ICICI Bank invest in car-jackers to recover loans in Goa. [18] [19]
- Family of Y. Yadaiah alleged that he was beaten to death by ICICI Bank’s recovery agents, for failing to pay the dues. Four persons were arrested in this case. [20]
- A father while talking to Times of India, alleged that "ICICI Bank recovery agents visited his house and threatened his family. And his son Nikhil consumed poison because of the tension". [21]
- Oppressed by ICICI Bank's loan recovery agents, Shakuntala Joshi (38), committed suicide by hanging. The suicide note stated that she was upset with the ill-treatment meted out by ICICI Bank's recovery agents and had thus decided to end her life. [22]
- In another case of a suicide it is alleged that ‘goondas’ sent by ICICI Bank abused Himanshu and his wife in front of the entire residential colony before taking away his vehicle. Feeling frustrated and insulted, he reportedly committed suicide. [23]
- C.L.N Murthy, a scientist with the Hyderabad-based Indian Institute of Chemical Technology, was allegedly tortured by recovery agents of ICICI Bank after he defaulted on his loan.“They humiliated me no end. They ripped my shirt, shaved my moustache, cut my hair and gave electric shocks on my chest and even spat on my face" adds Murthy. [24]
- A dozen recovery agents of ICICI Bank, riding on bikes, allegedly forced a prominent lawyer, Someshwari Prasad, to stop his car. They held Prasad at gunpoint and also slapped him to force him. A manager of the ICICI Bank branch, Rakesh Mehta, along with four other employees were arrested. [25]
- A recovery agent allegedly working for ICICI Bank was injured in an exchange of gunfire with Lucknow police. Police said that miscreants opened fire at the police, who returned the fire. The agent, along with three others, was trying to escape after allegedly stealing cash and a cheque from the defaulter. [26]
- In a landmark case, Allahabad High Court had ordered registration of an FIR against ICICI Bank's branch manager, President, Chairman and Managing Director on a complaint of 75-year-old widow Prakash Kaur. She had complained that “goondas” were sent by the bank to harass her and forcibly took away her truck.[27] [28] When the Supreme Court wanted to know about the procedure adopted by the Bank, ICICI Bank counsel said notice would be sent to a defaulter asking him either to pay the instalments or hand over the vehicle purchased on loan, failing which the agents would be asked to seize it. When the Bench pointed out that recovery or seizure could be done only legally, ICICI Bank counsel said, "If we have to go through the legal process it would be difficult to recover the instalments as there are millions of defaulters". [29]
- Taking strong exception to ICICI Bank's use of 'goondas' against a defaulter, the president of Consumer Disputes Redressal Forum said, "The fact leaves us aghast at the manner of functioning and goondaism in which the bank is involved for a petty amount of Rs 1,889... such attitude is deplorable and sends chills down the spine....The bank had the option to recover dues through legal means. They have no legal right to snatch the vehicle in such a manner which amounts to robbery,". In this case recovery agents pointed a pistol at a defaulter when he tried to resist. ICICI bank argued that they had taken peaceful possession of the vehicle "after due intimation to the complainant as he was irregular in remitting the monthly instalments". But the court found out that the records proved otherwise.[30]
- Two senior ICICI Bank officials were booked for abducting one Vikas Porwal from his house and keeping him hostage in the Bank's premises.[31] [32]
- The credit card division of the ICICI Bank allegedly threatened a senior citizen in Chandigarh with a fictitious arrest warrant on account of a default that never was. [33]
- A Consumer Commission has asked ICICI Bank MD K V Kamath to appear before it in respect a complaint. A borrower on protesting against the forceful dispossession of his car, as seen in the post-incident photographs, was roughed up and sustained injuries. [34]
- An 18-year-old boy was allegedly kidnapped and detained at the Pune branch of ICICI Bank.[35]
- There have been several other minor legal cases accusing harassment by ICICI Bank [36][37] [38] [39][40][41]
- A consumer court imposed a joint penalty of Rs. 25 lakh on ICICI Bank and American Express Bank for making unsolicited calls.[42]
False bankruptcy rumours
In the past, there have been several false rumours of ICICI going bankrupt.
In 2003, there was the false rumour in Gujarat that ICICI Bank was going bankrupt, and panicked people started withdrawing money from the Bank's ATMs.[43]
Due to the economic crisis of 2008 in the United States, there were rumours of ICICI Bank going bankrupt.[44] Some panicked customers started withdrawing money from ATMs all over the world.[45] ICICI Bank debunked the rumours and gave its detailed financial position to establish that it was in a sound position with assets of over Rs. 4,84,000 crore (Rs. 4,840 billion) and a net worth of over Rs. 47,000 crore (Rs. 470 billion). ICICI Bank also sought a SEBI probe into the "manipulation of its shares through a systematic pattern of rumours".[46] The Reserve Bank of India (RBI) joined ICICI Bank to reassure investors and customers, saying that the bank was in good financial health.[47]
References
See also
External links
