Transcript Industrial credit and investment corporation- 1955

Industrial credit and investment
corporation- 1955
An initiative of World Bank, government of
India and representatives Indian industries.
To create a developmental financial institution
for providing medium-term and long term
project financing to Indian businesses.
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During 1997-98, ICICI announced three mergers:
SCICI (Shipping credit and investment corporation of India)
- Strength in infrastructure financing, and in the shipping line of credit
which formed 27% of SCICI`s business.
ITC Classic finance Ltd
- Non banking financial arm of ITC Ltd
- ITC Ltd Was desperately scouting for a buyer for ITC classic, which had
accumulated losses of over Rs 300 crore.
- As a pre condition to merger, ITC had committed to inject Rs 350 crore into
ITC classic by way of preference capital of 20 years maturity, carrying a
nominal dividend.
Anagram
- Retail portfolio of Anagram, active in lease and high purchase, car finance,
truck finance and consumer finance attracted ICICI.
Improvements branches franchisees
Depositor base
ITC Classic
10
12
7,00,000
Anagram
50
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2,50,000
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ICICI Bank- Bank of Madura Merger
• ICICI bank- 1994
• A new generation private sector bank
• First Indian bank to be listed on New York stock
exchange
• By 2002, total assets of about $79 billion , a
network over 950 branches, 3500 ATMs and 24
million customers.
• US $ 81 billion at March 31, 2010, network of
2,506 branches and 5,808 ATMs in India, and has
a presence in 19 countries
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Bank of Madura- 1943
South Indian bank
Track record of 57 years and strong brand name.
Profitable , well capitalized private sector bank
Had low cost of deposits, at 7.3% and high return
on equity, 21.3 %
• Total assets of Rs 39.88 billion and deposits of rs
33.95 billion at the time of merger
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Outcomes of the merger:
• Enhanced customer base in south India, geographical
base, and shareholder value
• ICICI bank became richer by 260 branches, 2500
personnel, deposit base of around Rs 37 crore
• With combined assets of Rs 16,000 crore- amongst the
largest private sector bank in India, with strong
financial and operational structure which have given
greater capability for resource/deposit mobilisation.
• Cross selling of products and services of ICICI group
• Enabled ICICI bank to provide ATMs, phone and
internet banking
• Access to 87 rural and 88 semi urban branches.
• Microfinance activities through self-help groups and
agricultural sectors under its priority sector initiatives.
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Reverse Merger of ICICI with ICICI
bank- 31st March 2002
• Reasons ???
• Aimed at becoming a universal bank and the reverse
merger made it the second largest bank in India with
an asset base of over Rs 95,000 crore
• Merger brought development institutions (IDBI, ICICIcreated to meet financial requirements of of Indian
Industry) into domain of retail banking.
• ICICI bank wanted to wipe its huge portfolio of bad
assets and make retail account for 45% of the total
loans.
• K V Kamnath`s univeral banking project was internally
code named PROJECT DREAM.
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Merger of two wholly subsidiaries of ICICI- ICICi
personal financial services and ICICI capital
services- 2002
Elements of New strategy focuses on issues:
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Aggressive capital management
Optimal size
Technology intensive multi channe delivery architecture
World class skill bases
Enduring customer relationships
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ICICI group today - a virtual universal bank
Retail Financial Services
ICICI
ICICI Bank
Internet
Corporate Financial Services
• B2B
• Consumer Finance
Portals
• Web Trade
• Venture Capital
ICICI Capital
ICICI PFS
ICICI Home
ICICI Bank
ICICI Securities
ICICI Prudential
ICICI Web Trade
ICICI
ICICI Brokerage
Technology Platforms
• Payment Gateway
• Customer Relationship
Management
• Financial Vertical
• Web Technologies
… based on key building blocks present across the group
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ICICI Venture
ICICI Infotech
ICICI Lombard