A SUMMER INTERSHIP PROGRAMME ON COMPARATIVE ANALYSIS & COMPANY OVERVIEW AT
Submitted in partial fulfillment of the required of M.B.A. programme SUBMITTED BY:
GUIDED BY:-
BHATT JATIN S.
Internal Guide:
ROLL NO. : - 05
Mr. Nilesh Gami
MBA SEMESTER – III
External Guide:
ACADEMIC YEAR: 2010-11
Mr. Hitesh Bosmiya
EVA INSTITUTE OF MANAGEMENT - SUPEDI. Affiliated with Gujarat Technological University, AHMEDABAD JATIN S. BHATT
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COLLEGE CERTIFICATE This is to certify that Mr. BHATT JATIN SURESHBHAI has satisfactorily completed the project work at ICICIDIRECT.COM, JETPUR, under the guidance based on the declaration made by the candidate and my association as guide for carrying out this work; I recommend this project report for evaluation as a partial requirement of the MBA Programme of Gujarat Technological University, Ahmedabad.
DATE:
Assit. Prof. Nilesh Gami
Eva Institute of Management – Supedi
(Project Guide)
DATE:
(Dr. Ravi Vikram) Director EVAIMS - Supedi
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PREFACE A man without practical knowledge is just like a rough diamond. To shine like a real diamond one must have practical exposure of what he has learnt. For the management students, theoretical knowledge is just like lock without key, so practical knowledge is of utmost importance.
It is quite true that world outside; your cozy home is many times quite different from what you have perceived. Similarly it is possible that theoretical knowledge acquired in the classroom may differ from the practical knowledge.
As a curriculum part of M.B.A. course, I have taken my practical training at ICICI Direct.com at Jetpur.
It is my pleasure to present this project work after I had finished my summer training at ICICI Direct.com. This training has expanded my horizon of knowledge in practical as well as theoretical, which is vital for student in management level studies. Only the basic understanding of the principles of management is not sufficient but their application is also equally important.
I worked at Sub Branch, Jetpur and have tried my best to collect information on Marketing, Finance, Operation and Human Resource by visiting each of the departments.
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ACKNOWLEDGEMENT To acknowledge is very great way to show your gratitude towards the persons who have contributed in your success in one or other way.
At the very outset of the training I deem it is my pious duty to express my sincere thanks to Mr. Hitesh A. Bosmiya & Mr. Hiren A. Bosmiya for his continuous guidance and supervision during the training period.
My most profound thanks to my revered guider Mr. Nilesh Gami whose generous and able guidance has always been an unfailing source of inspiration throughout my training period.
DATE: PLACE: SUPEDI Yours faithfully,
BHATT JATIN S.
JATIN S. BHATT
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DECLARATION I the Undersigned Mr. BHATT JATIN SURESHBHAI, student of M.B.A – Sem. III hereby declare that the project work presented in this report is my own work and has been carried out under supervision and guidance of Mr. Nilesh Gami, Assistant Professor of EVA INSTITUTE OF MANAGEMENT, SUPEDI affiliated with G.T.U.
The objective of the training undertaken is to know all the department of the organization and to acquire practical knowledge in particular field.
This work has not been previously submitted to any other university for any other examination.
DATE:
PLACE: SUPEDI
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EXECUTIVE SUMMARY ICICI Direct.com is the largest equity house in the country providing end-to-end solutions (including web-based services) through the largest non-banking distribution channel so as to fulfill all the diverse needs of retail and corporate customers. ICICI Direct.com has a dominant position in its core segments of its operations - Corporate Finance including Equity Capital Markets Advisory Services, Institutional Equities, Retail
and
Financial
Product
Distribution.
With a full-service portfolio, a roster of blue-chip clients and performance second to none, we have a formidable reputation within the industry. Today ICICI Securities is among the leading Financial Institutions both on the institutional as well as retail side.
ICICI Direct.com, the step-down wholly owned US subsidiary of the company is a member of the National Association of Securities Dealers, Inc. (NASD). As a result of this membership, ICICI Securities Inc. can engage in permitted activities in the U.S. securities markets. These activities include Dealing in Securities and Corporate Advisory Services in the United States and providing research and investment advice to
US
investors.
ICICI Direct.com is also registered with the Financial Services Authority, UK (FSA) and the Monetary Authority of Singapore (MAS).
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INDEX
Sr.No. 1.
2.
3.
Particulars
Pg.no.
General Information Basic Information
10
Board of Directors
11
Brief History of the company
12
Competitors
25
Tips for Trading On-line
27
Clarity of Contingency Measures
28
SWOT Analysis
29
Current Status of Industry
31
Subsidiary co.‘s of ICICI
33
Marketing Department Introduction
35
Organizational Structure
37
Products
38
Product Life Cycle
56
Promotion Mix
58
Marketing Strategy
62
Human Resource Department
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Introduction
65
Organizational Structure
66
Human Resource Planning
68
Recruitment Resources
69
Selection Process
71
Training & Development Policy
75
Promotion & Transfer Policy
77
Welfare Policy
78
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4.
5.
Finance Department Introduction
85
Capitalization & Capital Structure
89
Management of Fixed Assets
91
Capital Budgeting
92
Working Capital Management
93
Financial Highlights
95
Ratio Analysis
96
Research Methodology
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Research Objective
101
Research Design
102
Comparative Analysis
105
Limitations of the study
118
Research findings
119
Recommendations & Suggestions
120
Conclusion
122
Bibliography
123
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GENERAL INFORMATION
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BASIC INFORMATION
NAME
:-
ICICI Securities
REGISTERED OFFICE
:-
Landmark', Racecourse Circle, Alkapuri, Vadodara-390007 Gujarat, India
TEL
:-
339923/24/25
FAX
:-
339926
WEBSITE
:-
www.ICICIdirect.com
CHIEF EXE. NAME
:-
Ms. Chanda Kochar
BUSINESS GROUP
:-
ICICI GROUP
INCORPORATION DATE
:-
05/08/1997
AUDITORS
:-
S.R. BATLIBOI & Co. C.A.
BANKERS
JATIN S. BHATT
:-
ICICI BANK
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BOARD OF DIRECTORS Ms. Chanda Kochhar, Chair person Mr. Ketan Patel Mr. Narendra Murkumbi Dr. Uday Chitale Mr. Pravin Vohra Mr. Sanjay Chatterjee Mr. Madhabi Puri-Buch, Managing Director & CEO Mr. A. Murugappan, Executive Director Mr. Anup Bagchi, Executive Director
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BRIEF HISTORY OF THE COMPANY HISTORY OF ICICI DIRECT.COM
The ICICI Securities is mainly dealing in the security market. The security market of India is very widely spreaded and still it is growing at a good rate. The major institutions which are involved in the security market are performing the role of the intermediaries for ―Buyers‖ and ―Sellers‖ in the market. The service provided by the mediator is easy transaction between two parties.
Before 1998 the security market was dealing in physical format. There were share brokers who performed the job of the intermediaries between the two parties. The main markets were the stock exchanges situated in different parts of the country. The brokers were purchasing and selling the securities on behalf of the investors. The major stock exchanges are as follow.
NATIONAL STOCK EXCHANGE {N.S.E.}:
NSE was set up in 1993 at Delhi to encourage stock exchange reforms through the system modernization and competition. The NSE was following the screen based trading system. The system through which the NSE is trading is known as the NEAT [National Exchange for Automated Trading.]. It allows members across the country to trade simultaneously and with full efficiency.
As on December 1996 there were around 1200 companies traded on NSE. Out of 1200 companies only 535 companies were listed and rest were permitted companies. The market capitalization as on January was 4.2 trillion. The total turn over of the NSE as on January was around Rs. 2, 16,000 crores. This was more than nine times than the turn over of 1995, which was Rs. 27,000 crores.
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BOMBAY STOCK EXCHANGE {B.S.E.}:The BSE is situated at Mumbai more popularly known as the ―DALAL STREET‖. As the Mumbai is the trading capital of the nation, most of the companies prefer to list their shares in the BSE. The BSE had an extra age over the NSE in number of the companies listed. As on December 1996, only 1200 companies were traded on the NSE where as on BSE on the same day 5999 companies were traded. But since November 1995 trading volumes on NSE is more than the BSE. The BSE is also a major party who has contributed to the development of security market in India.
OVER THE COUNTER EXCHANGE OF INDIA {O.T.C.E.I.}:
The OTCEI was established in the October 1990. It was jointly promoted by following institutions.
Unit Trust of India ICICI IDBI SBI capital Market Ltd. IFCI GIC
The OTCEI is an exchange where all the activities are computerized. It includes the trading, billing, payments etc…… This had opened a new horizon for the security market in India. As all the transactions were done through computers, it improved the speed, efficiency and transparency of the transaction.
Overview
ICICI Bank is India's second-largest bank with total assets of about Rs.1,67,659 crores at March 31, 2005 and profit after tax of Rs. 2,005 crores for the year ended JATIN S. BHATT
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March 31, 2005 (Rs. 1,637 crores in fiscal 2004). ICICI Bank has a network of about 560 branches and extension counters and over 1,900 ATMs. ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialized subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital and asset management. ICICI Bank set up its international banking group in fiscal 2002 to cater to the cross border needs of clients and leverage on its domestic banking strengths to offer products internationally. ICICI Bank currently has subsidiaries in the United Kingdom, Canada and Russia, branches in Singapore and Bahrain and representative offices in the United States, China, United Arab Emirates, Bangladesh and South Africa.
ICICI Bank's equity shares are listed in India on the Stock Exchange, Mumbai and the National Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE).
As required by the stock exchanges, ICICI Bank has formulated a Code of Business Conduct and Ethics for its directors and employees.
At April 4, 2005, ICICI Bank, with free float market capitalization* of about Rs. 308.00 billion (US$ 7.00 billion) 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 JATIN S. BHATT
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financial services group offering a wide variety of products and services, both directly and through a number of subsidiaries and affiliates like ICICI Bank. In 1999, ICICI become the first Indian company and the first bank or financial institution from nonJapan Asia to be listed on the NYSE.
After consideration of various corporate structuring alternatives in the context of the emerging competitive scenario in the Indian banking industry, and the move towards universal banking, the managements of ICICI and ICICI Bank formed the view that the merger of ICICI with ICICI Bank would be the optimal strategic alternative for both entities, and would create the optimal legal structure for the ICICI group's universal banking strategy. The merger would enhance value for ICICI shareholders through the merged entity's access to low-cost deposits, greater opportunities for earning fee-based income and the ability to participate in the payments system and provide transaction-banking services. The merger would enhance value for ICICI Bank shareholders through a large capital base and scale of operations, seamless access to ICICI's strong corporate relationships built up over five decades, entry into new business segments, higher market share in various business segments, particularly fee-based services, and access to the vast talent pool of ICICI and its subsidiaries. In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger of ICICI and two of its wholly-owned retail finance subsidiaries, ICICI Personal Financial Services Limited and ICICI Capital
Services Limited, with ICICI Bank. The merger was approved by shareholders of ICICI and ICICI Bank in January 2002, by the High Court of Gujarat at Ahmedabad in March 2002, and by the High Court of Judicature at Mumbai and the Reserve Bank of India in April 2002. Consequent to the merger, the ICICI group's financing and banking operations, both wholesale and retail, have been integrated in a single entity.
Free float holding excludes all promoter holdings, strategic investments and cross holdings among public sector entities.
ICICI group is a dynamic business group in financial sector of India. It has got growth at a very good speed and is still growing at better speed. The performance of the bank is consistently growing at a very good speed. This is the reason that ICICI bank has JATIN S. BHATT
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been ranked 2nd in all over performance in India. It is 2nd no bank after SBI group bank which is leading the bank sector. But still in the private sector banks ICICI is leading the market leaving behind banks like HDFC, Standard Chartered, Kotak Mahindra etc...
The history of growth of the ICICI is as follow in sequence of years.
1955: The Industrial Credit and Investment Corporation of India Limited (ICICI) incorporated through the collective efforts of the World Bank, the Government of India and representatives of Indian industry. Its main aim was to provide medium term and long term loans to the Indian business units. Mr.A.Ramaswami Mudaliar was been elected as the first Chairman of ICICI Limited
1956: ICICI declared its first Dividend at 3.5%. Within one year of the operation, bank started earning profit and declared dividend.
1958: Mr.G.L.Mehta was appointed the 2nd Chairman of ICICI Ltd.
1960: ICICI building at 163, Back Bay Reclamation was inaugurated.
1967: ICICI made its first debenture issue for Rs.6 crore, which was oversubscribed.
1969: First two regional offices in Calcutta and Madras were opened.
1972: Second entity in India to set-up merchant banking services.
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1977: ICICI sponsors the formation of Housing Development Finance Corporation. Managed its first equity public issue
1978: Mr. James Raj appointed as the fourth Chairman of ICICI.
1979: Mr.Siddharth Mehta appointed as the fifth Chairman of ICICI.
1982: Becomes the first ever Indian borrower to raise European Currency Units. ICICI commences leasing business.
1984: Mr. S. Nadkarni appointed as the sixth Chairman of ICICI.
1985: Mr.N.Vaghul appointed as the seventh Chairman and Managing Director of ICICI.
1986: ICICI first Indian Institution to receive ADB Loans. First public issue by an Indian entity in the Swiss Capital Markets.
ICICI along with UTI sets up Credit Rating Information Services of India Limited, (CRISIL) India's first professional credit rating agency.
ICICI promotes Shipping Credit and Investment Company of India Limited. (SCICI)
The Corporation made a public issue of Swiss Franc 75 million in Switzerland, the first public issue by any Indian equity in the Swiss Capital Market. 1987:
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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: ICICI promotes TDICI - India's first venture capital company.
1993: ICICI sets-up ICICI Securities and Finance Company Limited in joint venture with J. P. Morgan. ICICI sets up ICICI Asset Management Company.
1994: ICICI sets up ICICI Bank.
1996: Mr.K.V.Kamath appointed the Managing Director and CEO of ICICI Ltd.
1997: The name "The Industrial Credit and Investment Corporation of India Limited‖ was changed to "ICICI Limited". ICICI announces takeover of ITC Classic Finance.
1998: Introduced the new logo symbolizing a common corporate identity for the ICICI Group. ICICI announces takeover of Anagram Finance.
1999: ICICI launches retail finance - car loans, house loans and loans for consumer durables. ICICI becomes the first Indian Company to list on the NYSE through an issue of American Depositary Shares. JATIN S. BHATT
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2000: ICICI Bank becomes the first commercial bank from India to list its stock on NYSE. ICICI Bank announces merger with Bank of Madura.
2001: The Boards of ICICI Ltd and ICICI Bank approved the merger of ICICI 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 (Collateralized Debt Obligation) Fund named Indian Corporate Collateralized Debt Obligation Fund (ICCDO Fund). "E Lobby", a self-service banking centre inaugurated in Pune. It was the first of its kind in India. ICICI Bank launched Private Banking. 1100-seat Call Centre 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, 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 43% smaller credit card in dimensions launched. ICICI Bank subsidiary set up in Canada. Temasek Holdings acquired 5.2% stake in ICICI Bank. ICICI Bank became the market leader in retail credit in India. JATIN S. BHATT
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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 in rural India launched. 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 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 8-8 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. 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. JATIN S. BHATT
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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‗s USD 2 billion 3-tranche international bond offering was the largest bond offering by an Indian bank. Sangli Bank amalgamated with ICICI Bank. ICICI Bank raised Rs 20,000 crore (approx $5 billion) from both domestic and international markets through a follow-on public offer. ICICI Bank‘s GBP 350 million international bond offering marked the inaugural deal in the sterling market from an Indian issuer and also the largest deal in the sterling market from Asia. Launched India‘s first ever jewellery card in association with jewelry major Gitanjali Group. ICICI Bank became the first bank in India to launch a premium credit card -- The Visa Signature Credit Card. Foundation stone laid for a regional hub in Gandhinagar, Gujarat. JATIN S. BHATT
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Introduced SME Toolkit, an online resource centre, to help small and medium enterprises start, finance and grow their business. ICICI Bank signed a multi-tranche dual currency US$ 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 career in banking, ICICI Bank launched the "Probationary Officer Programme". Launched Bank@home services for all savings and current a/c customers residing in India ICICI Bank Eurasia LLC inaugurated its first branch at St Petersburg, Russia.
2008: ICICI Bank enters US, 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 simply done on mobile phones. 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 & Australia) since the beginning of 2007. ICICI Bank launches ICICIACTIVE - Banking Interactive Service - along with DISHTV, which will allow viewers to see information about the Bank's products and services and contact details on their DISHTV screens. ICICI Bank and British Airways launch co-branded credit card, which is designed to earn accelerated reward points to the card holders with every British Airways flight or by spending on everyday purchases ICICI Bank Board appoints Mr K. V. Kamath as non-executive Chairman and Ms Chanda Kochhar as Managing Director & CEO effective May 1, 2009, while the existing non-executive Chairman Mr N Vaghul retires after completing his term on April 30, 2009
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2009: ICICI bank ties up with BSNL Cell One for bill payments, it will facilitate bill payment for BSNL Cell One users through www.icicibank.com across all the 27 circles of BSNL. ICICI Bank Limited acting through its Hong Kong Branch (ICICI Bank) signed an agreement on Export Credit Line totaling up to US$100 million with the Japan Bank for International Cooperation (JBIC) which constitutes the international wing of Japan Finance Corporation. ICICI Bank Limited acting through its Hong Kong Branch (ICICI Bank) signed a loan agreement with the Export-Import Bank of China (China Exim) for USD 98 million under the Two- step Buyer Credit (Export Credit) arrangement. ICICI Bank is the first Indian Bank to have entered into this arrangement with China Exim ICICI Bank with Singapore Airlines launched ―ICICI Bank Singapore Airlines Visa Platinum Credit Card‖, the Card has exclusive privileges especially designed for the members.
ICICI Bank is India's second-largest bank with total assets of about Rs.125, 229 crore and a network of over 450 branches and offices and about 1790 ATMs. ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialized subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital and asset management. ICICI Bank's equity shares are listed in India on stock exchanges at Kolkata and Vadodara, the Stock Exchange, Mumbai 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 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 JATIN S. BHATT
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development f i n a n c i a l institution for providing medium-term and long-term project financing to Indian businesses. In the 1990s, ICICI transformed its business from a development financial institution offering only project finance to a diversified financial services group offering a wide variety of products and services, both directly and through a number of subsidiaries and affiliates like ICICI Bank. In 1999, ICICI become the first Indian company and the first bank or financial institution from nonJapan Asia to be listed on the NYSE.
After consideration of various corporate structuring alternatives in the context of the emerging competitive scenario in the Indian banking industry and the move towards universal banking, the managements of ICICI and ICICI Bank formed the view that the merger of ICICI with ICICI Bank would be the optimal strategic alternative for both
entities, and would create the optimal legal structure for the ICICI group's universal banking strategy. The merger would enhance value for ICICI shareholders through the merged entity's access to low-cost deposits, greater opportunities for earning feebased income and the ability to participate in the payments system and provide transaction-banking services. The merger would enhance value for ICICI Bank shareholders through a large capital base and scale of operations, seamless access to ICICI's strong corporate relationships built up over five decades, entry into new business segments, higher market share in various business segments, particularly feebased services, and access to the vast talent pool of ICICI and its subsidiaries. In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger of ICICI and two of its wholly-owned retail finance subsidiaries, ICICI Personal Financial Services Limited and ICICI Capital Services Limited, with ICICI Bank. The merger was approved by shareholders of ICICI and ICICI Bank in January 2002, by the High Court of Gujarat at Ahmedabad in March 2002, and by the High Court of Judicature at Mumbai and the Reserve Bank of India in April 2002. Consequent to the merger, the ICICI group's financing and banking operations, both wholesale and retail, have been integrated in a single entity.
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COMPETITORS ICICI Securities is providing share trading facilities. The ICICI was the 1st in India to introduce concept of online share trading. Now in the market there are few players who are providing the share trading facilities. Some of them are mentioned below who are providing some competition in the market.
1. HDFC Securities:-
HDFC bank is also one of the growing bank in India. It has also given new definition to banking services with providing extra services than the traditional banking services. HDFC was in housing finance initially but in last few years it has widen its scope of working area. It has entered in almost all the sectors in which ICICI is dealing.
HDFC is providing the demat account to its customers. The HDFC is not providing the online share trading like ICICI. Here it stays slightly behind the ICICI bank.
2. Kotak Street :-
Kotak Street is also emerging as a good competitor to all the share trading service providing company. It is also entering in the all the financial services like the ICICI and HDFC bank. The Kotak Street is relatively new compared to ICICI and HDFC in the field of share trading. Initially when the Kotak group had not entered in banking field it had collaboration with HDFC for the saving accounts of the customers who had or wanted to open the share trading account with the Kotak street.
But now as the Kotak group has its own bank, all the saving accounts are opened in the Kotak bank. The Kotak group has also entered in the field of insurance with name ―OM KOTAK MAHINDRA LIFE INSURANCE‖. The Kotak group has also entered in the MUTUAL FUND sector also.
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3. India bulls
India bulls are also one of the companies which is providing the share trading facility. It is a company which is providing the share trading facility only. It does not provide any saving account facility to its customer.
4. Motilal Oswal
Motilal Oswal is also one of the competitiors of icici direct.com. This Company is also providing online trading facilities with which customer can save their time and they will operate the programm on their computer.
5. Marwadi
This unit has paved their feet in each and every town because of the cheaper rate of its brokerage. They are not providing unlimited facility for trading.
6. 5paisa.com
5Paisa is the trade mane of India Infoline Securities Private Limited (5paisa), member of National Stock Exchange and The Stock Exchange, Mumbai. 5paisa is a wholly owned subsidiary of India Infoline Ltd. India‘s leading and most popular finance and investment portal. 5paisa has emerged as one of leading players in e-broking space in India.
7. Sharekhan Sharekhan, India‘s leading stock broker is the retail arm of SSKI, and offers you depository services and trade execution facilities for equities, derivatives and commodities backed with investment advice tempered by decades of broking experience.
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Tips for trading online 1. Know thyself: In other words, know the level of risk you are taking and whether it suits your investment personality and goals. 2. Know what you're buying: Research and understand what kind of security you are trading and whether it suits your investment needs. 3. Is your computer up to speed? Dated technology at your end can create delays in executing trades and receiving confirmations. 4. Exercise discipline: If you are buying a volatile stock, use a limit order to protect you from sharp, upward price movements. By submitting an order to buy a stock at a specific price, if the price rockets no purchase is made. This protects you from paying much more than you anticipated. 5. Know your options: If you can't get access to your account online, know your options for placing a trade. Most online brokers, for example, offer alternatives for placing trades such as touch-tone phone trades, faxing, or the old-fashioned way - speaking to a broker by telephone. But be aware that these options may increase your costs. 6. Confirmations: Investors sometimes mistakenly assume their trade orders weren't executed and submit another order. Check with the online firm on what procedures to follow to receive confirmations. 7. Ensure registration of the online broker 8. Make sure that the online broker, through whom online trading is conducted, is registered with the securities regulator. 9. Before selecting an online brokerage firm, look at the various firms offering this service, and rate them on the basis of speed of execution and customer service. 10. Acquaint yourself with the rules of the market 11. When trading in foreign securities, it is important to acquaint oneself with the regulations applicable to the concerned markets. However currently, trading in foreign securities is not allowed in India. 12. Clarity on working procedures of the broker 13. The investor must be clear on the following aspects relating to the working of the broker: 14. Procedure for opening the stock broking accounts JATIN S. BHATT
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Clarity of contingency measures 1. Before doing any online trading, one must be clear about the contingency measures, which will be adopted by the broker in the event of failure caused due to system breakdown and/or high network traffic. 2. Obtain confirmation from the broker 3. Always obtain a confirmation from the broker for transactions relating to placement, amendment and cancellation of orders. 4. Confirm source of information and ensure its credibility 5. Always confirm the source of information available online i.e. whether it is obtained from brokers, a corporate insider or an amateur investor. This will help in determining the validity of the information available online. 6. Use personal research and judgment for effective trading 7. The investor must not only rely on the status of stocks as posted online, but also use his own research results, for taking a trading decision. Also, prior to actual trading, the investor must be fully aware as to why he is buying or selling specific stocks and what is the risk involved in the investment decision. Based on his judgment as well as the status of stocks posted on the net, a prudent investment in the shares must be made.
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SWOT ANALYSIS SWOT analysis is done by all the companies to be aware about the competitor and new changes in the market. The SWOT analysis leads the company to take strategic decisions. Company always highlight its strength, try to hide own weakness and in the same way try to find out strength and weakness of the competitors. S – Strength
Strength of the ICICI Securities is the main feature of the service. As it gives 3 in 1 account to the customer, the ease to trade at your convenient time is the main strength of the ICICI Direct. Following are some of the strong points of the company.
Convenience of time to trade Faster transaction Paperless work 3 in 1 account facility so all work done at one place The bank has strength of the latest technologies and the most modern banking channels as net banking and the schemes such as young saver accounts also. The young and energetic staff of the bank is also one of the strengths.
W- Weaknesses
Weakness of company is fond out to remove it and then make the product or service better than current status. Each and every product and service has weakness. It is just like two side of the coin, if you have strength then you have weakness.
The weakness of the ICICI Direct.com can be said its high charges compared to other companies.
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O – Opportunity
Opportunity of the company is with the growth of volume of share trading and if company decides to reduce the prices to some extent then a new market segment will come up as a customer of the service.
Jetpur, being the big industrial city of Saurashtra region the Bank has enough of opportunities to flourish its business here. ICICI Bank can also grab the opportunity of establishing its market in the nearby towns and villages by keeping their ATM machines and also by sending their marketing executives to these remote places on some specific days. T – Threat
Threat for the company can be considered as following.
Growing competition Change in government rules which is negative for stock market Low prices of local brokers Low awareness of computer in public The other threat of the new entrants in the market will take up the share from them. Now a days many of the financing companies are entering the Jetpur‘s market, which is one of the biggest threat for the Banks as they provide the finance to the customers at very less rates and also at the quickest.
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CURRENT STATUS OF THE INDUSTRY The security market in India has developed a lot in last 5 to 7 years. The development is due to the increasing awareness among the people; developing communicational media and most importantly change in the way of transaction i.e. on line trading of securities. BSE Online Share Trading ―B.O.L.T.‖ has brought revolution in the security market.
Introduction of private banks in security market dealing and real estate business have brought the efficiency and competition in the market. Mutual funds are also one of the major elements which have influenced the growth of security market. Foreign Investment Institution [F.I.I.] and Foreign Direct Investment [F.D.I.] has also contributed in the growth of the security market in India.
Currently in the security market following securities are been traded by the investors, institutional buyers and foreign investors.
Shares [ Equity shares & preference shares ] Debentures Government Bonds Mutual Funds Commercial papers
The main feature of today‘s market is the Dematerialized form of almost all securities. Previously the securities were available in materialized form i.e. in papers but now it is available in Dematerialized form. It means securities are not given in paper format but in ELECTRONIC format it is been directly credited in purchaser‘s demat account.
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The main benefits of Dematerialized form are as follow.
Chances of fraud are minimized. Physical delivery of security is terminated No chance of theft of security Quick hand over and less transaction time.
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SUBSIDIARY COMPANIES At March 31, 2008, ICICI Bank had 17 subsidiaries as listed below:
Domestic Subsidiaries
ICICI Securities Limited ICICI Securities Primary Dealership Limited ICICI Prudential Life Insurance Company Limited ICICI Lombard General Insurance Company Limited ICICI Prudential Asset Management Company Limited ICICI Prudential Trust Limited ICICI Venture Funds Management Company Limited ICICI Home Finance Company Limited ICICI Investment Management Company Limited ICICI Trusteeship Services Limited
International Subsidiaries
ICICI Bank UK PLC ICICI Bank Canada ICICI Wealth Management Inc.1 ICICI Bank Eurasia Limited Liability Company ICICI Securities Holdings Inc.2 ICICI Securities Inc.3 ICICI International Limited
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MARKETING DEPARTMENT
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INTRODUCTION As we know today in this competitive era marketing plays an important role for any business to be with the market. As each and every small business should know skill of marketing as it is one of the most important part of management. So for every company it is important to have separate marketing department. We can define marketing as an activity of satisfying human need by process of exchanging goods and services from producer to consumers. The success of organization depends upon the marketing activity.
M a r k e t i n g involves activities related to the products. The activity which are done to satisfy customer need in better way, it includes activities such advertising, publicity, marketing research, distribution of products and services, sales promotion efforts etc. in ICICI Securities at main branch Rajkot the marketing of its product is done by the AUM & UM and schemes provided by the company.
Market Performance of ICICI Bank
In year 2003-04 ICICI Bank d e v e l o p e d in the business of the bank, ICICI Bank has surpassed HDFC Bank, a major player in the home loan market. It has a market share of about 27% of the total market of Rs.500, 000 cr. The Muthoot Group, one of the largest non-banking financing companies, has signed a memorandum of understanding with ICICI Lombard, a subsidiary of ICICI bank, to enter into the general insurance distribution market. In September 2004, Mutual Funds increased their holdings in ICICI Bank. The major investors being Franklin Templeton, UTI Mutual Fund and HDFC Mutual Fund.
ICICI has launched the ―Easy Deposit Card‖ which charges an interest of 0.99% per month, the lowest of the interest rates charged by any bank. The card is issued against a fixed deposit, which effectively makes it secured loan. This sets it apart from the regular credit cards, which take the form of unsecured credit. In September 2004, JATIN S. BHATT
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ICICI bank initiated talks with private equity investors and foreign banks to sell its 20.44% stake in Federal Bank.
The bank has increased its international presence by inaugurating a representative branch in Dhaka in August 2004. The Dhaka office would facilitate the trade relationship between the two countries and enable the bank to increase its participation in India‘s financial transactions with Bangladesh. At that, time bank launched a powerful banking service package, called ―Hello Canada Newcomers Account‖ designed to provide instant access to banking services in Canada to Indians migrating to that country.
ICICI Bank has launched an interactive mobile banking service in India in association with India‘s largest mobile service provider, Reliance Infocomm.
The growth in net interest income was due to the fall in interest expenses. Another strong reason for the profits of the bank is its strong advance in the retail business.
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ORGANISATIONAL STRUCTURE COUNTRY HEAD (MR. KARTIKEYAN)
REGIONAL HEAD (MR. ASHISH RATHOR)
UNIT MANAGER (MR. RONAK THAKKAR)
ASSISTANT UNIT MANAGER (MR. JAYESH VASANI)
TRAINEES
Marketing department consist of different persons with their unique position. Each and every company has its own marketing department. Marketing organization is consisting of people, activity, authority, responsibility and relationship for the purpose of achieving marketing objectives.
ICICI Securities at Rajkot main branch is working at lower level means it is not a big company and so it does not have its own different marketing department. Here ICICI Securities Bombay is making the policy related to marketing and the branch is following that policy.
ICICI Securities is having a simple organizational structure. As the structure is simple the authority and responsibility is also clearly defined and smooth working of the organization is possible. This structure is really helpful for the company to introduce any new product as a clear communicational channel is existing in the company. JATIN S. BHATT
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PRODUCTS ICICI Securities is mainly dealing with share, stock, government bond, mutual fund and IPO (initial public offer). ICICI Securities is providing mainly three type of product with different facilities. The core product of ICICI Securities is demat account. ICICI Securities is providing the core product with extra service of online share trading to its customer as per their requirement.
There are three type of account in ICICI Securities. They are as follow: 1. Simple demat account 2. Wise investment 3. Direct.com
1. Simple Demat Account:-
The simple demat account is the most simple form of ICICI Securities product. It gives a demat account to account holder. The customer can purchase and sell the share, government bond, and debenture. In this account the customer is suppose to deal in share market with the help of broker. Following are the regulatory aspects of simple demat account.
Customer can deal only with help of broker. No online share trading is allowed. Account opining charge is Rs. 750 If customer does not have saving account in ICICI Bank then he or she has to deposit Rs.5000 in the bank. Statement of demat account is given free of cost to the customer per quarter and if he or she wants monthly statement than Rs. 200 is charge per annum. JATIN S. BHATT
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Charges: Account opening charge is Rs. 750 Per purchase customer has to pay 0.02% of the amount of purchase. Minimum Rs. 20 Per sale customer has to pay 0.04% of the amount of sale. Minimum Rs. 20 Maintains charge of demat account is Rs. 350 per annum. Script maintains charge 0.75 paisa per script per month. Trade rejection charge is Rs. 50 per transaction rejected.
Limitation: Online share trading is not available. Transaction speed is very low compare to online share trading. Other competitors are providing the same service at lower rate.
2. Wise Investment Account:-
The Wise Investment Account is some what advanced version of simple demat account. This account gives the customer the freedom of doing online trading in Government bonds, Initial Public Offers and Mutual funds. Again here the main trading system is through the broker only.
Charges: Account opining charge is Rs. 500 Per purchase customer has to pay 0.02% of the amount of purchase. Minimum Rs. 20
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Per sale customer has to pay 0.04% of the amount of sale. Minimum Rs. 20 Maintains charge of demat account is Rs. 350 per annum. Script maintains charge 0.75 paisa per script per month. Trade rejection charge is Rs. 50 per transaction rejected. A saving account in ICICI BANK is necessary.
Limitation: Online trading in equity is not allowed. Transaction time is longer than online trading. Portfolio is managed by broker, not by our self. Unnecessary investment of Rs 5000 as balance in saving account.
3. Direct.com:
The most advanced version of share trading is ―Direct.com‖. It allows the trading through internet and gives totally paperless work. It is the most effective way of doing the share trading. ―Direct.com‖ allows the customer to work at his own. Means it removes the broker and a terminal is given in hand of customer.
Charges: Rs. 750 is taken as lifetime registration charge for using
ICICIDIRECT.COM. Rs 5000 are to be maintained as quarterly average balance in saving account.
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The brokerage is taken on TURNOVER of three month. As the turnover increase, brokerage rate comes down. The rate varies from 0.75 paisa to 0.25 paisa.
Limitation: High brokerage charge for lower turnover
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PRODUCTS:
ICICIdirect.com
EQUITY
Cash
Margin
DERIVATIVES
FUTURES
OPTIONS
MUTUAL FUNDS
IPOs
BONDS
Purchases
Redemption SIP & SWP
BTST
Spot
Switch in /out
Margin PLUS
Transfer in
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SITE MAP
ICICI direct.com 1) Home Page
Quotes Charts News
Market Commodity
2) Trading
Breaking News
Sector Watch
Portfolio Tracker
Net Worth
3) News
Watch list
Portfolio Alerts
Technical Analysis Pick of the Weak
ICICIdirect learning dictionary
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Icicidirect.com
4) Market page
Weakly Overview Mega Movers
Market Desktop
Monthly Gainers
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Super Movers
End of the day reports
5) Research Page
Industry News
Multex Global
Company Snapshot
My Research
My quotes Stock Screener
Corpor. Info bank
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ICICIdirect.com
6) Personal Finance page
Risk Analysis
7) Customer Service page
Bills & Acc
Asset Allocator Customer Updates
Customer Tools
Fee Schedules
Change Password
Direct Alert
View Point
Demo
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1. Trading in shares:
ICICIdirect.com offers you various options while trading in shares. Cash Trading : This is a delivery based trading system, which is generally done with the intention of taking delivery of shares or monies. Margin Trading : You can also do an intra-settlement trading up to 3 to 4 times your available funds, wherein you take long buy/ short sell positions in stocks with the intention of squaring off the position within the same day settlement cycle. Margin PLUS Trading : Through Margin PLUS you can do an intra-settlement trading upto 25 times your available funds, wherein you take long buy/ short sell positions in stocks with the intention of squaring off the position within the same day settlement cycle. Margin PLUS will give a much higher leverage in your account against your limits. Spot Trading : This facility can be used only for selling your demat stocks which are already existing in your demat account. When you are looking at an immediate liquidity option, 'Cash on Spot' may work the best for you, On selling shares through "cash on spot", money is credited to your bank a/c the same evening & not on the exchange payout date. This money can then be withdrawn from any of the ICICIBank ATMs. BTST : Buy Today Sell Tomorrow (BTST) is a facility that allows you to sell shares even on 1st and 2nd day after the buy order date, without you having to wait for the receipt of shares into your demat account. CallNTrade®: CallNTrade® allows you to call on a local number in your city & trade on the telephone through our Customer Service Executives. This facility is currently available in over 11 major states across India. Trading on NSE/BSE: Through ICICIdirect.com, you can trade on NSE as well as BSE.
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Market Order: You could trade by placing market orders during market hours that allows you to trade at the best obtainable price in the market at the time of execution of the order. Limit Order: Allows you to place a buy/sell order at a price defined by you. The execution can happen at a price more favorable than the price, which is defined by you, limit orders can be placed by you during holidays & non-market hours too.
2. TRADE IN DERIVATIVES: FUTURES Through ICICIdirect.com, you can now trade in index and stock futures on the NSE. In futures trading, you take buy/sell positions in index or stock(s) contracts having a longer contract period of up to 3 months. Trading in FUTURES is simple! If, during the course of the contract life, the price moves in your favor (i.e. rises in case you have a buy position or falls in case you have a sell position), you make a profit. Presently only selected stocks, which meet the criteria on liquidity and volume, have been enabled for futures trading. Calculate Index and Know your Margin are tools to help you in calculating your margin requirements and the index & stock price movements. The ICICIDIRECT UNIVERSITY on the HOME page is a comprehensive guide on futures and options trading. OPTIONS An option is a contract, which gives the buyer the right to buy or sell shares at a specific price, on on the other hand, before a specific date. For this, the buyer has to pay to the seller some money, which is called premium. There is no obligation on the buyer to complete the transaction if the price is not favorable to him.
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To take the buy/sell position on index/stock options, you have to place certain % of order value as margin. With options trading, you can leverage on your trading limit by taking buy/sell positions much more than what you could have taken in cash segment. The Buyer of a Call Option has the Right but not the Obligation to Purchase the Underlying Asset at the specified strike price by paying a premium whereas the Seller of the Call has the obligation of selling the Underlying Asset at the specified Strike price. The Buyer of a Put Option has the Right but not the Obligation to Sell the Underlying Asset at the specified strike price by paying a premium whereas the Seller of the Put has the obligation of Buying the Underlying Asset at the specified Strike price. By paying lesser amount of premium, you can create positions under OPTIONS and take advantage of more trading opportunities.
3. Investing in Mutual funds: ICICIdirect.com brings you the same convenience while investing in Mutual funds also - Hassle free and Paperless Investing. With the inclusion of Standard Chartered MF, you can now invest on-line in 10 mutual Funds through ICICIdirect.com. Prudential ICICI MF, JM MF, Alliance MF, Franklin Templeton MF, Sundaram MF, Birla Sun Life MF, HDFC MF, Principal MF and IL & FS MF are the Mutual Funds available for investment. You can invest in mutual funds without the hassles of filling application forms or any other paperwork. You need no signatures or proof of identity for investing. Once you place a request for investing in a particular fund, there are no manual processes involved. Your bank funds are automatically debited or credited while simultaneously crediting or debiting your unit holdings.
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You also get control over your investments with online order confirmations and order status tracking. Get to know the performance of your investments through online updation of MF portfolio with current NAV. ICICIdirect.com offers you various options while investing in Mutual Funds: Purchase: You may invest/purchase Prudential ICICI MF, JM MF, Alliance MF, Franklin Templeton MF, Sundaram MF, Birla Sun Life MF, HDFC MF, Principal MF, IL & FS MF and Standard Chartered MF without the hassles of filling application
forms.
Redemption: In addition to giving hassle-free paperless redemption, ICICIdirect.com offers faster liquidity. You can redeem the mutual fund units through ICICIdirect.com. The money will be credited to your bank account automatically 3 days
after
the
order
placement
date.
Switch: To suit your changing needs you may wish to shift monies between different schemes. You can switch your monies online from one scheme to another in the same fund
family
without
any
hassles.
Systematic Investment plans (SIP): SIP allows you to invest a certain sum of money over a period of time periodically. Just fill in the investment amount, the period of investment and the frequency of investing and submit. ICICIdirect.com will do the rest
for
you
automatically
investing
periodically
for
you.
Systematic withdrawal plan: This allows you to withdraw a certain sum of money over
a
period
of
time
periodically.
Transfer-in: You can convert your existing Mutual funds into electronic mode through a transfer-in request. 3. IPOs and Bonds Online: You could also invest in Initial Public Offers (IPOs) and Bonds online without going through the hassles of filling ANY application form/ paperwork. JATIN S. BHATT
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Get in-depth analyses of new IPOs issues (Initial Public Offerings) which are about to hit the market and analysis on these. IPO calendar, recent IPO listings, prospectus/offer documents, and IPO analysis are few of the features, which help you, keep on top of the IPO markets. 5. ContentFeatures:
There are a host of features on ICICIdirect.com that shall help you make informed investment decisions. We provide you with the indices of major world markets, nifty futures and ADR prices of Indian scripts. Get daily share prices of all scripts, monthly and yearly high/lows etc through Market Watch. Get breaking news from CNBC and Reuters. Catch a glimpse of News Headlines through our scrolling Direct News Headlines. Get a snapshot of the latest developments in the markets through the day using Market Commentary. You can get weekly snapshots also. Use Pick of the week, which focuses on fundamental stocks with sound prospects. Catch interviews, reactions and comments from industry leaders with CEO Call. Track the movement of leading scrip‘s within a sector across 12 sectors using Market@Desktop. Equip yourself with our barometers. Market Barometer gives you in-depth information of the weightages of shares on Nifty and Sensex. Get a glimpse of the performance of various industry sectors through Industry Barometer. Direct Technical Charts offer interactive charting with advanced indicators. Get a bird's eye view of over 5000 companies at a single click using Company Snapshot. Glance through analyst recommendations using Multex Global Estimates. In case, you are not too comfortable with share trading, try our Learning Centre, which is a tutorial on investments and My Research, that helps you to research a stock better. JATIN S. BHATT
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6. Personal Finance: Use our Personal Finance section and get hold of tools that can help you plan your investments, retirement, tax etc. Analyse your risk profile through the Risk Analyzer and get a suitable investment portfolio plan using Asset Allocator. 7. Customer Service Features:
With 'ICICIdirect Customer Tools & Updates' you can trouble shoot all your problems online. Address your trading queries on-line through "Easy Mail". You can view and change your
profile
or
password
on-line
through
General
Profile
option.
Get details of ICICI Centers, our sales and service offices, across India through branch
locator.
View your Account Statement and Bill Summary of your transactions online using bills
&accounts.
View your Digital Contract Notes instantly. View various charges through the Fee Schedule option. Give your feedback or viewpoint through the Viewpoint online. Enroll yourself for various ICICIdirect Workshops through Register for Customer Sessions. Introduction of new products and services
ICICI SECURITIES introduced some innovative products by using their strong technological capabilities through different schemes for customers. These schemes are
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so unique and having different type of advantages for different customers. S 1 to S 9 schemes.
Another new thing about this company is that, they are having variety of unique products for each type of investor. Either the customer is a day trader or an investor, company is having products like MARGIN, MARGIN PLUS, BUY TODAY SELL TOMMORROW (BTST), CALL AND TRADE ,CASH ON SPOT, CASH TRADING, IPO‘S AND MF, SYSTEMATIC INVESTMENT PLAN, PORTFOLIO TARCKER etc.
Dematerialization of Securities (Demat):-
Dematerialization is the process of converting the securities held in physical form (certificates) to an equivalent number of securities in electronic form and crediting the same to the investor’s dematting account. Dematerialized securities do not have any certificate numbers or distinctive numbers and are delta only in quantity i.e. the securities arefungible.
Dematerialization of your holdings is not mandatory. You can hold your securities either in demat form or in physical form. You can also keep part of your holdings (in the same scrip) in demat form & part in physical form. However, a select list of securities announced by SEBI can be delivered only in demat form in Stock exchange connected to NSDL.
SELL DEMATERIALISED SECURITIES:-
You can sell your dematerialized securities in any of the stock exchanges linked to NSDL through a broker of your choice. You give a delivery instruction to your DP for debit of your depository account and credit of your broker‘s clearing member account. JATIN S. BHATT
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On the pay-in day, your broker gives instruction to his DP for delivery to clearing corporation/clearing house of the relevant stock exchange The broker receives payment from the clearing corporation/clearing house. You receive payment from the broker for the sale in the same manner you would receive payment for a sale in the physical mode. BUY DEMATIRIALIZED SECURITIES:-
You purchase securities in any of stock exchanges connected to NSDL through a broker of your choice and make payment to your broker. Make sure you tell your broker you want only demat shares. Broker received credit in his clearing account with his DP on the day of payout. He can immediately transfer these securities to your depository account, provided your account is already active. Broker gives instructions to his DP to debit his clearing member account and credit your depository account.
Rematerialization:-
Rematerialization is the process of converting the securities held in electronic form in a demat account to an equivalent number of securities in physical form (certificates) after debiting the same from the demat account.
The Internet revolution has been changing the fundamentals of our society. It shapes the way we communicate and the way we do business. It brings us closer and closer to vital sources of information. It provides us with means to directly interact with service-oriented computer systems tailored to our specific needs; therefore, we can serve ourselves better by making our own decisions.
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You may know that, historically, the share bazaar has usually given wise investors higher returns on their money over the long term than any other form of investment. And in these times of much lower interest rates on fixed income investments, shares are probably looking more and more attractive as a place for you to put your money.
If you have done your homework, you know that the share bazaar is volatile. You know that while many people have made fortunes overnight, many have also lost them
just
as
rapidly.
It is hugely important - critical even - that you go into the share market with your eyes open. That you study it, know what makes it tick, understand what experts are talking about when they
discuss
shares.
Unfortunately, many of the best experts talk a language all their own. It is very difficult for someone who has not spent time learning that language to figure out what they
are
saying.
Even more unfortunate is that by the time you learn the basics, you could wind up broke.
Someone who knows what the dangers are knows how to get to the good stuff. Who teaches you what the tools are and how to use them. Who can show you how to get the information you need, and how to make it work for you. Who can take care of you until you are ready to take care of yourself?
You
need
an
expert
guide,
educator,
personal
trainer
and
facilitator.
Who can gives you the full benefit of its experience technology-based tools and research, all modified and customized for the novice.
Who can gives you powerful, easy-to-use tools, on the web, or via ordinary phone lines, that will help you as a stock market investor. JATIN S. BHATT
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It teaches you with systematic demos at crucial stages - at the beginning, and when you are ready to do your first trade -. Moreover, it gives you the services of a dedicated customer support team.
It continues to support you with research by experts, delivered to you in simple, easy to understand fashion.
ICICI direct.com makes the most of state-of the-art technology to deliver power, speed and reliability. Through an easy-to-use interface, users are provided with the same tools and advantages that the professionals enjoy.
With access to both the NSE & BSE, you are in the driver's seat when routing your order to the best price on either of the exchanges. Icici direct.com has sophisticated yet easy to use point and click order entry interface allows you to react more quickly to the markets and make better decisions.
Keep an eye on the stocks you care about most with streaming, real-time quotes and customizable market data. Color-coded price changes help you to spot trends and react to them quickly.
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PRODUCT LIFE-CYCLE The concept of Product Life Cycle is very important for any company to decide about future of its product. As a human takes birth, grows up, becomes mature and at the end die, products also have the Product Life Cycle. The company considers the stage of Product Life Cycle and then makes the promotion policies.
1.
Introduction
2.
3.
Growth
4.
Maturity
Decline
1. Introduction Stage:This is the stage when the product is just entering in the market. In this stage the company needs to make the maximum promotional efforts and advertisement to establish the product in the market.
2. Growth stage:This is the stage where the market is aware about the product and now the sales and profit are increasing. This stage allows the company to have a grip on the market.
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3. Maturity Stage:The most important and longest part of the Product Life Cycle is the maturity stage. As in this stage the company is getting the most number of the customer and the market share of the company is stable. Now company starts innovating its product.
4. Decline stage:This is the stage where the product has lost its attractiveness and now people do not prefer the product. Now the profit is down and sales are also declining.
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PROMOTION-MIX As we know in today‘s world having good quality product is not enough. As per the Marketing concept – ―Even though your product is the best, people will not buy enough of it, if enough efforts are not made to sell the product to the customer‖ So the marketing has become an important part of the corporate world.
The marketing is mainly concerned with the manner in which a company is able to sale its product or services. The ICICI Securities is engaged with the marketing of demat accounts and its major policies are made by the head office at Mumbai. At Rajkot branch, local stalls are done at various places to make promotion at local level.
Advertisement
Sales Promotion
Promotion Mix
Publicity
Personnel Selling
Advertisement:Advertisement is one of the important parts of promotion policy of the company. As we know, the advertisement has become very necessary for any company to survive in this thought cut competition. ICICI Securities is not having separate television JATIN S. BHATT
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advertisement but as a part of ICICI, indirect advertisement is done. ICICI Securities is targeting computer user as their target market, so its main advertisement is done through internet.
Media:Media means ―The Way‖, through which the company is spreading its message. ICICI Securities is using the Internet as its media which is one of the fastest media in today‘s world. The ICICI Group is making advertisement in many media. Following are some of it. Television News paper Hoardings Magazine Brochures
Budget:Budget means the estimated amount to be invested behind any investment. The advertisement budget is mainly prepared by the head office and advertisement in television and national news paper is given by the head office. Local news paper advertisement is given by the branch.
Types:There are many types of advertisement available to any company in today‘s world. The company is using the different type of advertisement at different stage of product life cycle. The company is making use of different types of advertisement at different phases of the product life cycle. Informative advertisement is done at introduction stage as it creates awareness in public about the product. Persuasive advertisement is made in introduction stage to create preference in mind of customer over the competitors‘ JATIN S. BHATT
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brand or product. Competitive advertisement is made to make comparison between company product and competitor‘s product at growth stage of the product. Reminder advertisement is made at maturity stage of the product. Here the company has already established itself in the mind of customer and general public.
Sales promotion:Sales promotion is a key ingredient in marketing campaigns. It consists of a diverse collection of incentive tools, mostly of short term which is designed to stimulate quicker or greater purchase of a product. Advertisement offers a reason to buy and sales promotion offers an incentive to buy.
Sales promotion tools [for consumers] Samples Coupons Cash refunds Prices off Demonstrations
Sales promotion tools [for traders] Prices off Advertising and display allowances Free goods
ICICI Securities is providing the sales promotion in following ways
Account opening charge refund if customer has any ICICI product which is 6 months old.
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Demonstration of product is made at bank as well as out of bank at regular interval by executives.
Personal selling
As ICICI is selling the service and not a product , personal selling is more effective and practical than other measures of increasing sale. The mouth to mouth publicity of the service is the best publicity a company can get so to satisfy each and every customer is priority of the company.
ICICI executives approach to the persons who have made query about the service and they try to explain them each and every aspect of the service and its features.
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MARKETING STRATEGY Competing on Valuable Resources Every bank has a collection of physical and intangible assets and capabilities that it has developed over a period. ICICI is having such unique stock of resources for its competitive advantage. One of the ways in which a resource becomes inimitable is due to physical uniqueness. Physical location of a branch of bank in the heart of the financial centre of any city is a unique resource that cannot be replicated. Another example of an inimitable resource is a strong Brand name. Even if a competitor spends billions of rupees, it will find it difficult to acquire the trust and brand equity that customers associate with. Scarcity: For the resource to be valuable, it should be scarce or rare. A prime example of such resources is the Human Resources. For a service industry such as banking where human resources form a significant source of value addition, possession of excellent quality work force generates a key competitive advantage.
ICICI SECURITIES is having such skilled human resources.
ICICIWEBTARDE see itself a very strong player of the market. As per Mr. N VAGHUL, the chairperson, the financial sector will play a crucial role in India‘s potential.
Mobilizing resources from households and canalizing these resources into areas identified as development priorities was the main strategy ICICI adopted. Because of their powerful resources of technology as well as human resource, they can compete in this global era. ―We have a strong focus on communicating with our investor to explain our strategy and performance and understand their perspectives. Our ability to raise capital and the JATIN S. BHATT
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confidence that our investors have placed in us over the years have been critical to our growth and new business initiatives.‖
Said KALPANA MORPARIA, DEPUTY MANAGING DIRECTOR of ICICI.
As far as marketing is concern, with ICICI Bank, we all know that how aggressively the marketing activity of ICICI has done. Through different advertisements, through a very strong background of technology and innovative product line.
ICICIWEBTRADE is having separate Marketing Division enriched with marketing experts. As far as ICICIdirect.com is concern, the Regional Product Manager takes all the decisions or in other word, you can say a branch head is the key person how to do different activities regarding marketing.
The main product of ICICIWEBTRADE is an online account, and the unit is having number of executives with proper training. These persons go in field and demonstrate the product.
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HUMAN RESOURSE DEPARTMENT
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INTRODUCTION Human Resource Management is one of the most important functional areas of any company. As we know ―Even if we have latest technology, equipments and best product in the market, but do not have proper human force to make effective utilization, it is in vain.‖ So H.R.M. has become one of the most important aspects of any company.
H.R.M. means management of human resource, making their proper development as and when required. Previously it was known as ―Personnel Department‖. It had a limited scope of recruiting the human force as and when required, but as the time has passed the value of ―Human‖ has increased. Now management is considering the human as human and not a factor of production. One of the world famous people Mr. Henry Ford has said that ―YOU MANAGE YOUR MEN AND YOUR MEN WILL MANAGE ALL OTHER THINGS.‖ Today this concept has been accepted by most of the companies working in India as well as all over the world. Now all companies are interested in maintaining and developing their existing manpower.
H.R.M. consists of all the activities related with the human. It includes the areas like recruitment, selection, placement, induction, training, development, promotion, transfer, demotion, wage and salary etc… This all aspects are very crucial aspect for any company as its main input is human in any production or service industry.
For a service providing company its work force is most important as they are ―tengiblising the intangible service to make its sale.‖ ICICI being a service providing company is having more concerned with the human force. ICICI is India‘s no. 1 private
Bank and has large number of employees. The ICICI has following strategies towards the human resource.
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ORGANISATIONAL STRUCTURE ‗Organization‘ is a group of people working together co-operatively under ‗authority‘ towards achieving goals and objectives that mutually benefit both, organization and employees. There is a specific flow of authority and responsibility from top to bottom. This is defining ―who is responsible to whom.‖ This is known as organizational structure of the company. The organizational structure helps in better management and control over the activities.
The main functions of organizational structure are as follow.
Task Accomplishment. Delegation of Authority. Proper span of supervision. Proper communicational channel
Above all functions are performed through organizational structure of the company. The structure helps to achieve the organization‘s goal more effectively and efficiently.
COUNTRY HEAD (MR. KARTIKEYAN)
REGIONAL HEAD (MR. ASHISH RATHOR)
UNIT MANAGER (MR. RONAK THAKKAR)
ASSISTANT UNIT MANAGER (MR. JAYESH VASANI) TRAINEES
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This organization structure is for Rajkot branch. The structure remains the same for other branch also. The regional head is appointed per state and unit manager is appointed per district. If needed there can be more than one unit manager in one district. Assistant unit manager are appointed per branch. AUM appoints number of trainees as per requirement in the market.
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HUMAN RESOURCE PLANNING HRP means making planning about human resource. It includes managing human force and making arrangement for future need also, so that proper employment is maintained. HR manager need to estimate future need and arrange for suitable candidate when needed. HRP is defined by many authors in different ways. Following is one simple definition.
COLEMAN: ―The process of determining manpower requirement and the means for meeting those requirements in order to carry out the integrated plan of the organization.‖
Benefits:-
Better view to top management over the human resources. Better utilization of available human resource. Forecast of future need for employees may be done.
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RECRUITMENT RESOURCES According to YODER, ―Recruitment is a process to discover the sources of manpower to meet the requirement of the staffing schedule and to employ effective measures for attracting that manpower in adequate number to facilitate effective selection of an efficient working force.‖
ICICI Securities has two recruitment resources.
Internal resource External resource
Internal resources:-
Internal recruitment means filling the vacancy by existing employees. It includes shuffling of employees by transfer, promotion, demotion etc. In ICICI Securities post of AUM and UM are filled by promotion given to trainees and AUM respectively.
Benefit:It improves morale of employee. Better evaluation is possible of present employees. Promotes loyalty among the employees. Less costly compared to external recruitment.
Limitation:-
It discourages new person to enter in the company. If promotion is given on bases of seniority then young talent may get discouraged.
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External resources:-
Sometimes the requirement of the company does not match with the current employees; the company now has to go for external recruitment. There are many external sources from where a company can get the suitable candidates.
Following are some of the sources.
Colleges / campus recruitment Press advertisement TV advertisement Employment agencies
External recruitment means recruiting a person from out side. This is used mainly for trainees. They are supposed to have minimum education of graduation. Even students of college are selected by AUM as trainees who have good communicational skill and want to get marketing experience. Mainly local advertisement is given to fill up the place of trainees.
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SELECTION PROCESS If you are on the verge of completing your Management Education and believe that the amazing world of Banking is for you, there is no better place to start than ICICI Bank.
Cross-functional movements are strongly encouraged to build capability in each employee to become a knowledgeable service provider.
To get started, fill in the profile form. They will create a login id number and password in case of successful registration. Your registration details will be emailed to you on your specified email ID. You must use the same to log on, to edit your resume and to know your hiring status in our company.
You can respond directly to a Current Opening or submit your profile into Talent Database for consideration against future opportunities.
If you have already applied, you can update your resume with the most recent information or choose to re-apply against a different position.
To improve the selection process for recruitment at all levels in ICICI Bank, They have carried out an in-depth study of the competencies required to succeed in ICICI Bank.
As per their research, the competencies, which indicated success at the entry level in ICICI Bank, are:
Drive for results Process Orientation Interpersonal Effectiveness Analytical Thinking Innovation Team Effectiveness JATIN S. BHATT
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In order to assess the same they use a set of three tools –
A Mental Ability Tests (for candidates with 0-2 years of work experience) a Personality profiling system The Mental Ability Test gives a fair and objective assessment of candidates‘ skills in the areas of verbal reasoning, numerical reasoning & diagrammatic reasoning. These are important skills for the role of an entry-level manager and people who do well in these tests tend to do well in their jobs at ICICI Bank. The total time taken in this exercise is 2 hours with each of the three sections lasting 40 minutes Candidates (at all levels regardless of the number of years of work experience) are also required to complete the Occupational Personality Questionnaire (OPQ) before they appear for the interview, the results of which are integrated into our interview process.
If you are very interested to work in an esteemed organization like ICICI Bank, ICICI gives you the opportunity to prove yourself.
The link Current Openings will take you to all the jobs that are being sourced at present. You can click on the jobs to check out the detailed description of the position. Follow the local newspapers for any regional recruitment.
If you are in the middle of a professional programme, than you can apply for an Internship with ICICI Bank by,
Their site http://www.icicicareers.com/www.icicicareers.com
click on the link
Campus Recruitment. This will take you to a page where most of the colleges are listed. On choosing the appropriate college, a resume template appears. Fill that up and choose Training as the category under Applying for option at the end of the resume builder. On submitting the form, your resume will be processed as per vacancies in ICICI Bank. JATIN S. BHATT
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There is no clerical cadre of employees in ICICI Bank. The entry-level employee in our bank is an Officer.
Selection is a long process commencing from the preliminary interview of the applicants and ending with the contract of employment. The hiring procedure is not a single act, but it is a series of methods or steps by which additional information is secured about the applicant. At each stage fact may come to light which may lead to rejection of the applicant.
Selection process means a process through which most suitable person is selected from the applicants. Normally there are written exam, oral test, interviews, and practical test are taken as selection process. In ICICI Securities trainees are selected on basis of interviews. Normally selection processes are done as per following.
Receipt of application:-
Normally local news paper advertisements are given in news paper for requirement of trainees. Direct applications are submitted by candidate on web site.
Scrutinisation of application:-
Then the applications are being checked for their approval. Candidates which are capable of doing job more efficiently are called for the written exam. The applicants are informed by either mail or e-mail about the date of exam.
Written Interview:-
Normally written exam are not taken by the bank for job of trainee. But for the job of AUM or administrative officer the exams are taken in major cities. The exam contains questions on arithmetic ability and general knowledge.
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Oral Interview:-
The candidates whose applications are most suitable are called for oral interview. Interviews are taken by AUM and UM.
Selection:-
The candidate who has cleared above stages is selected for the job.
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TRAINING AND DEVELOPMENT Training is a process of learning a sequence of programmed behavior. It is application of knowledge. It gives people an awareness of the rules and procedures to guide their behavior in the market. It attempts to improve their performance on current job or prepare them for an intended job.
Development is a related process. It covers not only those activities which improve the job performance but also those which bring about growth of the personality. It helps a person in progress towards maturity and actualization of their personal capacity so that they become not only good employee but better men and women.
Following are some methods of training which are frequently used.
On the job training
On the job training method are the methods which gives the trainees opportunity to work in an atmosphere which resembles or is itself the real atmosphere. It includes following methods.
Job instruction training Vestibule training Training by experienced workmen Demonstration Simulation Apprenticeship
Off the job training
Off the job training is generally given to provide information to the
trainees. This is
useful when the trainee has no experience. This training provides the back ground of company to the trainee.
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Following are few of the job training methods
Lectures Conferences Group discussion Case studies Role playing Programmed instructions Laboratory training.
Newly entered trainees are given training by experienced trainees as well as AUM. Firstly by AUM they are given full information and knowledge about all products and then for practical training they are send with experienced trainees to get practical knowledge about how to talk with customer, face to face as well as on phone. This is called on the job training which gives practical exposure to trainee.
Development is a related process. It covers not only those activities which improve the job performance but also those which bring about growth of the personality. It helps a person in progress towards maturity and actualization of their personal capacity so that they become not only good employee but better men and women.
For development of AUM bank and AUM they are arranging for seminars. UM are also giving them guidance and regional head also visit the bank and give suggestion for development if needed.
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PROMOTION & TRANSFER POLICY Promotion:-
Promotion means vertical movement of employee in organization structure. It increases salary as well as responsibility. Promotion in ICICI Securities is based on performance. Consistent performance of a trainee gives promotion of AUM and consistent AUM performance lead to UM.
Transfer:-
Transfer means horizontal movement of employee in organizational structure. Transited in ICICI Securities is rare. Normally transfer is not done except it is asked by employee himself or herself or new branch is opened and bank needs experience person in new branch.
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WELFARE POLICY ICICI Securities is now a part of the ICICI bank. The welfare policy of all the companies working under ICICI group is framed by the ICICI group. It remains the same for all the employees of the ICICI group. Following are some of the highlights of the welfare policy of the ICICI group.
Trekking Club:
ICICI bank is encouraging the employees to go for new challenges. In the same cause it arranges the trekking for the employees. ―Trekking means to find a new trek.‖ It develops the decision making and ability to handle a new situation. This provides opportunity to employees to be physically and mentally fit and strong. It also connects employees to the NATURE.
ICICI Bank organizes an annual trek to Uttarkashi. This makes employees satisfied as they get chance to visit a place and joy of trekking.
Photography Club:
ICICI has a photography club in which all the interested employees get the opportunity to learn from experts all about photography techniques, camera handling, film developing and camera care. The club organizes contests with exciting prizes to win! This encourages hobby development and sense of being counted as a family member to the employees.
Saturday Kids Club:
For the children of our employees, a place to learn, unwind and have lots of fun. This allows development of the children.
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Health Services:
The company provides a comprehensive medical plan with an on-site doctor and dietician.
Discount offers / schemes:
Corporate discounts on stuff ranging from washing machines, PCs, and CDs round the year.
Holiday Homes:
We have holiday homes in the better-known vacation spots all over the country.
Scholarship Schemes:
For the children of our employees, so that they may grow to reach new heights.
Organizational Excellence
The Organizational excellence group, headed by a senior General Manager who reports to Managing Director & CEO , is engaged in institutionalizing quality across the Bank by building skills and capabilities in various quality frameworks. The group has evolved a holistic workplace transformation model by integration various quality methodologies such as Five S and Six Sigma. The group has been instrumental in facilitating enterprise-wide deployment of Five S and is currently catalyzing the development of quality processes across the Bank. The group works with business units to leverage quality for business improvements. The group also supports other ICICI group companies in their quality initiatives.
Community Development: JATIN S. BHATT
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ICICI‘s social initiatives are designed to improve the capabilities of the poorest of the poor to participate in the larger economy. They believe that optimizing child health in the early years, providing universal elementary education and maximizing access to micro financial services are critical for facilitating effective participation.
ICICI Bank's social sector initiatives aim to resolve some of the most fundamental developmental problems facing India today. Our involvement is primarily in terms of non-commercial support to fill knowledge and practice gaps in specific thematic areas— Early Child Health, Elementary Education and Micro Financial Services.
www.ICICIsocialinitiatives.org is an interactive platform that seeks to:
Bring together participants in the development process to widen and deepen the discourse informing development practice. Interactive features include discussion boards and facilities to post papers, articles or other resources. Publish research related to innovations and significant problems within the identified thematic areas. Enable online application for funding
Early Child Health: In fiscal 2005, ICICI collaborated with DHAN Foundation, an NGO in Tamil Nadu, with federated self-help groups (SHGs) and a robust micro finance programme to examine whether
(a) SHGs provide an effective mechanism for improving health outcomes through community-based and participatory ‗behavioral change communication‘. (b) SHGs can mobilize communities and interface with local institutions to activate the public health system. (c) Innovative integration of microfinance and health care interventions can reduce health care expenditure. JATIN S. BHATT
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Additionally, ICICI participated in planning for and developing a community based health worker programme for the state of Jharkhand based on the learning derived from an operations research project funded by them in two blocks of Ranchi district. ICICI also consolidated their efforts to improve health of newborn infants in the city of Mumbai through health system reform and community action.
Elementary Education:
ICICI believe that education is a basic capacity required by every individual to critically participate in social, political and economic processes and avails of opportunities to acquire additional advanced skills throughout life.
The aim of their work in elementary education is to maximize the number of 14 years olds who have a basic level of education. During fiscal 2005, ICICI explored issues influencing the quality of education received by poor children in urban areas, undertook initiatives to collect data on student learning and supported resource organizations working in the area of early childhood education. Further in continuation of their strategy
to strengthen of Delhi, Madhya Pradesh and Rajasthan. In addition, they consolidated their initiative with State Council of Educational Research and Training, Chhattisgarh for development and testing of curricula and textbooks and other capacity building measures.
Micro Financial Services ICICI‘s initiative in the area of micro financial services seek to ensure that all individuals, especially the poorest, have access to financial services. Their work in this area is to ensure universal access to financial services and develop a comprehensive suite to financial services. in particular , they are investing in training facilities for the creation and strengthening of micro finance institutions( MFIs) as also working towards addressing constraints such as lack of capital and nonavailability of suitable IT solutions. During Fiscal 2005, ICICI made rapid strides in developing several products, including savings, investments, pensions, remittances JATIN S. BHATT
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and insurance (life and non-life, including weather, cattle and health insurance). These products are in varying stage of development. A comprehensive health insurance has already been introduced through ICICI Lombard General Insurance Company for the poor in Anekal Taluka in Karnataka. The product insures 60,000 lives as provides cashless treatment for 1,600 surgeries, in-patient and outpatient care at a premium of Rs. 120-180 per person per annum. The product is being replicated in Manipal. Similarly, the weather insurance product has also been successfully adopted by various states in India. ICICI is now in the process of designing a weather insurance product for the landless poor to cover loss of work due to adverse weather conditions.
ICICI Bank is divided into
(1) Wholesale banking (2) Retail banking (3) International banking
As a rapidly growing organization ICICI look to induct post-graduate management talent from various business schools across the country. Enthusiastic and talented youth form the backbone of their banking operations and will become future leaders of ICICI.
ICICI
offers the grooming needed to be the best. ICICI
offers a wide range of
careers in all functions including - Finance, Marketing, Operations, Information Technology and Human Resources.
ICICI having ability to nurture individuals and provide them the space and empowerment they need to hone their talents. Size gives ICICI the unique ability to provide fast growth and high responsibility early in one‘s career as well as multiple avenues to reach the top.
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The Work Culture at ICICI Bank is a tech-savvy, non-hierarchical, work environment where early responsibility and independent decision-making enable each employee to reach his/her potential. Coupled with this is a strong performance management system that has built a meritocracy where high performing-high potential individuals are duly rewarded.
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FINANCE DEPARTMENT
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INTRODUCTION Finance is one of the most crucial aspects for any company or business. The finance is needed at all ventures. ICICI being bank finance is inevitable aspect for the bank. Before 1980 A.D. the function of financial manager was to just manage the inflow of cash when ever needed by the company. But now the scenario has changed.
Finance is like lifeblood in any organization. It is very difficult to run business without enough procurement of finance in current scenario. According to Phillipatus ―Financial Management is concerned with the managerial decisions that result in the acquisition and financing of long-term and short-term credits for the firm.‖
The Financial Management is mainly concerned with the proper management of funds. The finance manager must see that the funds are procured in a manner that risk, cost and control considerations are properly balanced in a given situation and there is optimum utilization of funds.
The financial manager is having mainly three aspects to manage.
1. Finance function. 2. Investment function. 3. Dividend function.
1. Finance function.
In finance function the manager has to estimate the financial need of the company and then try to satisfy it in most efficient and effective way. i.e. To get the money as and when needed.
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2. Investment function.
In investment decision manager is performing the task of evaluating the project and selecting the most profitable project for the company. Here the selection is done on the bases of the company‘s priority.
3. Dividend decision.
The company is managed by professionals now a day. The real owners of the company are the shareholders. Profit of the company is given to shareholders in form of dividend. Management takes the decision how much profit to pay as dividend and how much to retain. According to modern management approach, ―Finance function is procurement of funds, and then effective utilization in the business‖.
FINANCIAL SECTOR OVERVIEW
The financial sector witnessed significant developments during fiscal 2005. Credit growth strengthened with an increase in industrial activity. Non-food credit increased by 29.1% in fiscal 2005 compared to 18.5% in fiscal 2004. Based on the data published by RBI, the industrial sector is estimated to have accounted for 27.0% of credit growth in fiscal 2005 as compared to 16% in fiscal 2004. The contribution of retail credit growth to overall credit growth was the largest at 42 % of total non-food credit. The credit-Deposit ratio increased from about 56% in April 2004 and stood at about 60% from November 2004 onwards. The incremental credit deposit ratio, excluding the impact of conversion of IDBI into a bank, was about 100% in March 2005 compared to about 60% at the beginning of the year.
Deposit grew by Rs.2, 285.26 billion, or 14.5%, in fiscal 2005 compared to 16.2% in fiscal 2004. The average yield on 10-year government securities increased from 5.5% in fiscal 2004 to 6.2% in fiscal 2005. In response to the hike in CRR and the reverse JATIN S. BHATT
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repo rate in the RBI‘s mid-year review, in November 2004, banks increased their benchmark prime lending and deposit rates.
Growth in both the life and non-life insurance markets was significant. First year premium underwritten in the life insurance sector recorded a growth of 35.7% to reach Rs. 253.43 billion in fiscal 2005 with the private sector‘s market share increasing from 13.0% in fiscal 2004 to 21.9% in fiscal 2005.
Gross premium in the non-life insurance sector grew by 12.8% to Rs. 180.95 billion in fiscal 2005 with the private sector‘s market share increasing from 14.1% in fiscal 2004 to 19.6% in fiscal 2005.
Total asset under management of mutual funds grew by 7.2% from Rs. 1,396.16 billion at March 31, 2004 to Rs. 1496.00 billion at March 31, 2005. The banking sector witnessed several important regulatory developments. In June 2004, guidelines on capital for market risk were issued. Under this, banks would be required to maintain a capital charge for market risk in respect of their trading and available for sale investment portfolios.
RBI has issued draft guidelines for the implementation of the revised capital adequacy framework of the Basel Committee. These are to be effective from fiscal 2007 and prescribe a 75.0% weight for retail credit exposure, rating based differential risk weights for other credit exposure and a capital charge for operational risk.
A roadmap for presence of foreign banks in India has also been outlined. Initially, foreign banks are allowed entry only in private sector banks identified by RBI for restructuring in which acquisition is allowed in a phased manner. On February 28, 2005, RBI released guidelines on ownership and governance in private sector banks.
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The Indian financial sector is rapidly moving towards international benchmarks. Progress in direction of increasing efficiency, transparency and dynamism in the system has been rapid. Given the rapid growth prospects in India, the financial sector has a crucial role to play in the development of the economy. Board based reforms have made the banking sector competitive and have positioned it well to support sustainable growth in a fast growing economy.
The strength of the bank has been its diversification into various businesses. It covers almost all the financial arrears. Recently, it entered into the commodity market in a big way. It has also tasted success with its branchless banking model.
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CAPITALISATION AND CAPITAL STRUCTURE Capitalization means total capital of a company. Capital structure means how a company gathers its total capital. ICICI Securities is part of ICICI Bank. It doesn‘t have its own capital structure and capitalization. Capitalization and capital structure of ICICI Bank as a whole is as given below.
Capitalization means total amount of a Company‘s capital or total value of capital. It is the sum of owners‘ capital + loan + retained earnings of business.
Gerston Bery defines capitalization as ―the total accounting value of all the capital regularly employed in the business‖.
Capital Structure:
The capital structure of business should be such that, which helps to achieve the objectives of finance department. The capital structure should be examined from the view point of the impact of the value of the firm. It can be legitimately expected that if the capital structure decision affects the total value of the firm, a firm should select such Capital structure, which will maximize share holders wealth. Such type of capital structure is called as OPTIMUM CAPITAL STRUCTURE (OCS). O.C.S. may be defined as the capital structure, which is in the combination of debts and equity that leads to the maximum value of the firm.
According to Gerstenberg, Capital structure refers to ‗the makeup of firm‘s capitalization‖. Means it represents the mix of different sources of long-term funds such as equity shares, preference shares, long-term loans, retained earnings etc.
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In our organization the capital structure can be shown like below.
Particulars
2010 (Rs. In „000)
Subscribed and fully paid up 1,110,707
2009 (Rs. „000) 610,710
share capital. Reserves and surplus
624,128.76
1,159,320
Loans (Debt).
4,291,600
4,481,850
Total
5026435.76
6251880
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MANAGEMENT OF FIXED ASSETS The fixed assets are distinguished from the current assets on the basis of length of their physical and economic life, their convertibility into cash, the place they occupy in the business cycle. Thus, fixed assets are permanent in nature and not easily converted into cash. Huge firms are required to invest in fixed assets, for long period and if any mistake made in evaluating investment proposals, must be shown by he finance manager in evaluation investment proposal. These fixed assets have fixed cost burden, therefore operating and financial efficiency of the firm have direct bearing upon it. There are two types of fixed assets: 1. Tangible assets 2. Intangible assets
Tangible assets include land, building, machinery, plants, etc. Intangible assets includes goodwill, patent, trademark, etc., there are various aspects the manager should keep in mind while preparing plan for fixed assets. These are as under:-
Time of acquisition of fixed assets:
Evaluation of capital project Physical and economical life of project Method of purchasing of fixed assets Unit of investment in fixed assets Regular records of each assets Rate of depreciation on fixed assets Plant maintenance
Replacement policy: Efficiency of each fixed assets JATIN S. BHATT
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CAPITAL BUDGETING Capital Budgeting is the process of planning expenditure for assets, the return on which are expected to continue beyond one year.
The investment of funds requires a number of decisions to be taken in a situation in which funds are invested and benefits are expected over a long period. The finance manager of concern has to decide about the asset composition of the firm. The assets of the firm are broadly classified into categories viz. fixed and current. The aspect of taking the financial decision with regard to fixed assets is known as capital budgeting. The term capital budgeting means planning for capital assets. The capital budgeting decision means a decision as to whether or not money should be invested in long term projects.
There are so many methods available for taking decisions of capital budgeting some of are as given below.
1). Payback period method. 2). The net present value method. 3). Profitability index. 4). Average rate of return method. 5). Internal rate of return method.
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WORKING CAPITAL MANAGEMENT One of the most important areas in the day to day management of the organization is the management of working capital. Working capital management is the functional area of finance that covers the entire current accounts. Working capital refers to the funds invested in current assets, i.e. investment in inventories, sundry debtors, cash and bank balances etc. Current assets are essential to use fixed assets profitably.
Working capital requirement is one of the important criteria in every organization proper concentration would always beneficial for organization.
The following are the main factors which should be taken into consideration while determining the requirement of working capital.
1). Production policies. 2). Nature of Business. 3). Credit policy. 4). Inventory policy. 5). Market Conditions. 6). Conditions of supply. 7). Growth and expansion. 8). Level of Taxes. 9). Dividend Policy. 10).Price Level Changes.
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Concept of working capital:
There are 2 types of working capital management, namely (1) Gross and (2) Net.
1. Gross Working Capital
The firm‘s gross working capital refers to total current assets of the firm. Current assets are that which can be converted into cash within accounting year or a short period. These assets should be more than current liabilities.
2. Net Working Capital
The term Net Working Capital refers to difference between current assets and current liabilities. It guides the financial manager about the liquidity position of the firm. The goal of Working capital management is to manage current assets and current liabilities in such a way, that an acceptable level of Net working capital is maintained.
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FINANCIAL HIGHLIGHTS (Rs. In million) Fiscal 2009
Fiscal 2010
Gross Income
7409.00
5182.10
Profit before Tax
227.20
67.30
Provision for Tax
820.30
23.10
Profit after Tax
1506.90
44.20
Profit after Tax for the year ended March 31, 2010 decreased to Rs. 44.2 million from Rs. 1506.90 million in the previous year, primarily due to overall decrease in income by Rs. 2307.90 million. After taking into account the balance of Rs. 635.10 million (previous year: Rs. 408.90 million) brought forward from previous year, profit available for appropriation is Rs. 679.30 million (previous year:Rs. 1906.70 million), of which Rs. 20.0 million (previous year Rs. 149.80 million) has been transferred to General Reserve.
DIVIDEND During the year, the Company declared two interim dividends on the equity share capital, aggregating 39.31% and amounting to Rs. 240.1 million. The Directors are pleased to recommend the aggregate of interim dividends at Rs. 240.1 million as final dividend for the year. The Company had, on December 19, 2009, issued 5,000,000, 13.75% NonConvertible Cumulative Redeemable Preference Shares to ICICI Home Finance Company Limited. The Directors are pleased to recommend a dividend @ 13.75% per annum for the period from December 19, 2009 to March 31, 2010 amounting to Rs. 19.4 mil JATIN S. BHATT
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RATIO ANALYSIS Ratio analysis is one of the techniques of financial analysis where rations are used as a yardstick for evaluating the financial condition and performance of the firm. Analysis and interpretation of various accounting rations gives skilled and experiences analyst a better understanding of the financial condition and performance of the company than what he could have obtained only through a perusal of financial statements.
Ratios are relationships expressed in mathematical terms between figures which are connected with each other in come manner. Obviously, no purpose will be served by comparing two sets of figures which are not at all connected with each other. Moreover absolute figures are also unfit for comparison.
1). Current Ratio
This ratio measures the solvency of the company in the short term. Current assets are those assets which can be converted into cash within a year. Current liabilities and provisions are those liabilities that are payable within a year.
Current Ratio =
Current Assets Current Liabilities
2010
=
2964117.1
= 1.43
2066709.49
2009
=
7696700
= 2.20
3494640
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2). Quick Ratio Quick ratio is used as a measure of the company‘s ability to meet its current obligations. Since bank overdraft is secured by the inventories, the other current assets must be sufficient to meet other current liabilities. Quick Ratio = Current Assets, loans & Advances – Inventories Current Liabilities & Provisions – Bank overdraft 2010 = 2963199.1
= 1.434
2066709.49
2009 = 7459780
= 2.13
3494640
3). Debt Equity Ratio
This ratio indicates the relationship between loan funds and net worth of the company, which is known as ‗gearing‘. If the proportion of debt to equity is low, a company is said to be low geared, and vice versa.
Debt Equity Ratio =
Long term debt Share holder fund
2010
= 4291600
= 3.86
110707.00
2009 = 4481850
= 7.34
610710
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4). Shareholder‟s Equity Ratio
This ratio is calculated as follows:
Shareholders Equity Total Assets It is assumed that larger the proportion of the shareholder‘s equity, the stronger is the financial position of the firm. This ratio will supplement the debt-equity ratio. In the ratio, the relationship is established between the shareholders‘ funds and the total assets.
2010
= 1734835.76
= 0.214
8093145.15
2009
= 1770030
= 0.182
9740579
5). Fixed Assets to Long term fund
The fixed assets are shown as a proportion to long term funds as follows:
Fixed assets to long term fund
= Fixed Assets Long term funds
This ratio indicates the proportion of long term funds deployed in fixed assets. Fixed assets represent the gross fixed assets minus depreciation provided on this till the date of calculation. Long term funds indicate share capital, reserves and surplus and long term loans. The higher the ratio indicates the safer the funds available in case of liquidation. It also indicates the proportion of long term funds that is invested in working capital. JATIN S. BHATT
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2010 = 406336.45
= 0.095
4291600
2009 = 384384
=
0.086
4481850
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RESEARCH METHODOLOGY
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Research Objective Research on “Comparative analysis of Icicidirect.com with other companies” Today market is very competitive .That is why Icicidirect.com is also facing competition from the other players in online share trading. So it requires to knowing the product &services provided by the other players. It will give the co.the data & the statesstics about the product and services of the other online trading players. It will help the company to know how to get competitive advantage from the other players.
Any activity done without any objective in a mind cannot turn fruitful. An objective provides a specific direction to an activity. Objectives may range form very general to very specific, but they should be clear enough to point out with reasonable accuracy what researcher wants to achieve through the study and how it will be helpful to the decision maker in solving problem. To the product know and services of other online trading players To know the positive things about the company‘s own product from others To know the possible product changes required in current product To find the lacking in the current product.
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Research design A research design is pattern or an outline of a research project‘s working. It is a statement of only the essential elements of a study, those that provide the basic guidelines for the details of the project. It comprises a series of prior decisions that taken together provide a master plan for executing a research project.
A research design serves as a bridge between what has been established i.e. the research objective and what is to be done, in conduct of the study to realize those objectives. If there were no research design, the research would have only foggy notion about what is to be done. There are numerous specific designs, which can be classified into three broad categories.
Research design is the conceptual structure within which the research would be conducted. In fact, it is the general blueprint for the collection, measurement and analysis of data.
Data Collection After taking the objectives into consideration resources of data are decided. Mainly data sources are primary data and secondary data. Secondary data are the data that were collected for another purpose and already exist somewhere. Primary data are data gathered for a specific purpose or for a specific research project. The following are the data acquired for the study:
Secondary Data Sources It refers to already gathered and collected data. These may be internal sources within the clients firms. Externally, these sources may include books or JATIN S. BHATT
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periodicals, reports and computer data banks. Here, the data is being collected from: 1. Details about the organization from websites of all the companies 2. Brochures of the Company
Primary Data Sources This data is gathering for the first time for the problem solution. Primary data has to be collected through well-equipped instruments, as they are first hand information collected for the research.
SAMPLING DESIGN PROBABILITY/ PROBABILITY
NON
PROBABILITY
Sampling Unit
Online trading companies
Sample Size
6 Online trading companies
Sampling Procedure
Simple Stratified Sampling
Other on-line share trading co.‟s are ICICIDIRECT.COM
WWW.ICICIDIRECT.COM
Sharekhan
www.sharekhan.com
5paisa
www.5paisa.com
Indiabulls securities ltd.
www.indiabulls.com
HDFC Securities
www.hdfcsec.com
Kotak Securities
www.Kotaksecurities.com
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Comparative Analysis
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Here comparative analyses of sites have been done.
Market: ICICI Direct.com is doing trade in both NSE as well as BSE market whereas India bulls, HDFC Securities, kotak street doing in BSE market only. 5paisa is doing in both BSE as well as NSE market.
So in case of ICICI Dirct.com is concern, it takes 40 to 50 seconds for that where as India bulls is lowest in them and it takes 2 to 3 seconds, 5paisa.com takes 3 to 5 seconds, Kotak Street takes 5 to 10 seconds, Share khan takes 5 to 10 seconds and HDFC Securities takes 40 to 50 seconds.
ICICI Direct.com takes this much time because they will give you first buying or selling page where you have to fill information then after you have to proceed where they will give you order verification page where you will check then after you have to proceed and this particular order verification will sent to the exchange then after order acknowledgement receipt will come and then after we have to see in order book whether order is executed or not so it takes so much time where as in other site they will give you within 5 to 10 seconds.
Linkage: In online trading, it link with 3 in 1 account where it include bank account, demat account and trading account. Where it easily takes place transaction and we can easily transfer money from saving to secondary market, IPO, mutual fund, derivative and other product.
In ICICI Direct.com, it also linked with 3 account and it is its own DP a\c, saving a\c and trading a\c. where as in India bulls, share khan and 5paisa.com they have its own DP a\c and trading a\c but not saving a\c, it has to be open in other bank a\c. where as kotak street and HDFC Securities having its own 3 account.
Quotes update technology: this is a technology where latest and live quotes will be updated second to second. it also update latest price, volume, volatility etc.
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In India bulls, kotak street, sharekhan and in 5paisa.com, it is having trading through terminal so it is giving very fast update technology about the quotes where as in ICICI Direct.com still no such a type of technology like terminal trading is there but it gives fast updating technology and in the same way HDFC Securities also provides this facility.
Registration charges: it is charges where we have to pay at the time of registration may be lifetime account, stamp duty charges, intermediary commission.
In ICICI Direct.com and in HDFC Securities, it is Rs. 750. also in 5paisa.com it is Rs.750, in kotak street and share khan it is Rs, 500 where as it is Rs. 500 in India bulls.
Registration Time: It is the time between filling up form and activation of account. It includes rejection time period.
In ICICI Direct.com, it takes 2 to 3 weeks registration time but some time it will give us quick response about of it also. Whereas in 5paisa.com it takes 10 days and in kotak street it takes 7 days, where as in share khan it takes 7 days, where as in India bulls it takes 4 days only where as in HDFC Sec., it takes 2 to 3 weeks.
Terminal: this is an important technology for trading in secondary market where latest price, which share is going up, which share is going down, % change, we can see real trade practices on it, it is wise instrument.
India bulls, share khan, 5paisa.com, kotak street provided terminal to their customer at extra cost.
Call alert facility: it is good facility provided where alert provided by company to its customer about indicator.
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ICICI Direct.com give this indicator with the help of giving message. e.g. if you have suggested that if particular stock increase to this prices then give me alert then this system give you alert and message come on your mobile. In other site like India bulls they will send you message in messenger.other site send you e-meil.
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COMPARISION Particulars
ICICI Direct
HDFC Sec.
A/c. Opening
750
750
Cash Segment ( Delivery )
0.75%
0.50%
Margin Segment ( Same Day )
0.15%
0.15%
A/c. Opening
NIL
NIL
Annual Service Chages
350
299
Market Buy
0.02%, Mini Rs. 20
0.04%,Mini. Rs. 25
Market Sell
0.04%, Mini Rs. 20
0.04%,Mini. Rs. 25
Off-Market Buy
0.02%, Mini Rs. 20
0.04%,Mini. Rs. 25
Off-Market Sell
0.04%, Mini Rs. 20
0.04%,Mini. Rs. 25
Dematerialization
Rs. 35 per request, Rs. 2 per certificate
Rs. 35 per request, Rs. 3 per certificate
Rematerialization
Rs. 20 per entry
Rs. 10 per cetificate, Mini. Rs. 10
Custody Charges
0.75 per month per ISIN
Rs. 1.25 per month per ISIN
ICICI-5000
HDFC-5000
Cash Segment ( Delivery)
1 time
4 times
Margin Segment ( Same Day )
3 to 25 times
4 times
Saving Bank A/c. With
ICICI Bank
HDFC Bank
Demat A/c. With
ICICI Bank
HDFC Bank
Brokerage:-
Demat Charges:-
Mini. Bal. Requirement in Savings A/c.
Limit Exposure:-
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Icicidirect.com vs. Hdfc securities Competitive Advantages of icicidirect.com Market Buy & off-market sell charges are less than the hdfc securities I.e. in icici – 0.02%, mini Rs. 20 in hdfc – 0.04%, mini Rs. 25 Custody charge of Icicidirect.com is also less than the hdfc sec. I.e. Icici – 0.75 per month per ISIN hdfc – 1.25 per month per ISIN More limit exposure providing to the customers I.e. 3 to 25 times limit exposure in margin segment(same day), where hdfc providing only 4 times limit exposure.
Drawbacks of Icicidirect.com Brokerage is more than the hdfc I.e. 0.75% where in hdfc it is only 0.50%. Annual service charge is also higher than the hdfc I.e. in icici – Rs. 350 where in Hdfc it is only Rs.299. Rematerialization charges is also higher than the hdfc I.e. in icici – Rs. 20 per entry & in hdfc it is only Rs. 10 per certificate, mini Rs.10
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Particulars
ICICI Direct
Kotak Street
A/c. Opening
750
500
Cash Segment ( Delivery )
0.75%
0.50%
Margin Segment ( Same Day )
0.15%
0.10%
A/c. Opening
NIL
NIL
Annual Service Chages
350
240
Market Buy
0.02%, Mini Rs. 20
0.04%, Mini. Rs. 15
Market Sell
0.04%, Mini Rs. 20
0.04%, Mini. Rs. 15
Off-Market Buy
0.02%, Mini Rs. 20
0.04%, Mini. Rs. 15
Off-Market Sell
0.04%, Mini Rs. 20
0.04%, Mini. Rs. 15
Brokerage:-
Demat Charges:-
Rs. 25 per request, Rs. 3 per Dematerialization
Rs. 35 per request, Rs. 2 per certificate
certificate
Rematerialization
Rs. 20 per entry
0.04% of the value, Mini. Rs. 15
Custody Charges
0.75 per month per ISIN
Rs. 1.25 per month per ISIN
HDFC-2500+5000 Deposite for 7
Mini. Bal. Requirement in Savings A/c.
ICICI-5000
days UTI-1000+5000 Deposite for 7 days KOTAK-2500+5000 Deposite for 7 days
Limit Exposure:Cash Segment ( Delivery)
1 time
4 times
Margin Segment ( Same Day )
3 to 25 times
4 times
Saving Bank A/c. With
ICICI Bank
HDFC,UTI,KOTAK
Demat A/c. With
ICICI Bank
Kotak Securities
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Icicidirect.com vs. Kotak Street Competitive Advantage of ICICIdirect.com In Icicidirect.com only Rs. 5000 minimum balance requirement where in Kotak street the minimum balance requirement is more I.e. in Hdfc 2500+5000 deposit for 7days, in UTI 1000+5000 deposit for 7 days or in Kotak 2500+5000 deposit is required. Highest limit exposure in case of margin segment (same day) given to the customers i.e. 3 to 25 times where in the Kotak it is only 4 times given.
Drawbacks of Icicidirect.com Account opening charge is higher than the Kotak street i.e. Rs. 750 where in Kotak it is only Rs. 500. Brokerages is also higher than the Kotak street i.e. in Icicidirect.com it is o.75% & 0.15% where in Kotak it is only 0.50% & 0.10% Annual service charge of demat account is also higher than the Kotak i.e. in icici it is Rs. 350 & in Kotak it is only Rs. 240.
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Particulars
ICICI Direct
5-paisa
A/c. Opening
750
750
Cash Segment ( Delivery )
0.75%
0.50%
Margin Segment ( Same Day )
0.15%
0.10%
A/c. Opening
NIL
NIL
Annual Service Charges
350
250
Market Buy
0.02%, Mini Rs. 20
NIL
Market Sell
0.04%, Mini Rs. 20
Rs. 20 per transaction
Off-Market Buy
0.02%, Mini Rs. 20
NIL
Off-Market Sell
0.04%, Mini Rs. 20
Rs. 20 per transaction
Rs. 35 per request, Rs. 2 per
Rs. 25 per request, Rs. 5 per
Dematerialization
certificate
certificate
Rematerialization
Rs. 20 per entry
Rs. 15 per certificate
Custody Charges
0.75 per month per ISIN
Rs. 1.00 per month per ISIN
Mini. Bal. Requirement in
ICICI-5000
ICICI-5000+5000 Deposit
Brokerage:-
Demat Charges:-
Savings A/c.
HDFC-2500+5000 deposit
Limit Exposure:Cash Segment ( Delivery)
1 time
1 time
Margin Segment ( Same Day )
3 to 25 times
5 times
Saving Bank A/c. With
ICICI Bank
ICICI,HDFC
Demat A/c. With
ICICI Bank
India Infoline Securities
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Icicidirect.com vs. 5-paisa Competitive Advantage of icicidirect.com In Icicidirect.com only Rs. 5000 minimum balance requirement where in 5paisa the customer have to kept minimum balance Rs. 5000+5000 deposit in icici or in hdfc 2500+5000 deposit is required. Highest limit exposure in case of margin segment (same day) given to the customers i.e. 3 to 25 times where in the Kotak it is only 4 times given.
Drawbacks of Icicidirect.com Brokerages is higher than the 5-paisa i.e. in Icicidirect.com it is o.75% & 0.15% where in 5-paisa it is only 0.50% & 0.10% Annual service charge of demat account is also higher than the 5-paisa i.e. in icici it is Rs. 350 & in 5-paisa it is only Rs. 250.
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Particulars
ICICI Direct
Indiabulls
A/c. Opening
750
500
Cash Segment ( Delivery )
0.75%
0.50%
Margin Segment ( Same Day )
0.15%
0.10%
A/c. Opening
NIL
200
Annual Service Chages
350
NIL
Market Buy
0.02%, Mini Rs. 20
NIL
Market Sell
0.04%, Mini Rs. 20
Rs. 17 per transaction
Off-Market Buy
0.02%, Mini Rs. 20
NIL
Off-Market Sell
0.04%, Mini Rs. 20
Rs. 17 per transaction
Rs. 35 per request, Rs. 2 per
Rs. 25 per request, Rs. 1 per
Dematerialization
certificate
certificate
Rematerialization
Rs. 20 per entry
0.02% of the value, Mini Rs. 15
Custody Charges
0.75 per month per ISIN
Rs. 1.25 per month per ISIN
Brokerage:-
Demat Charges:-
Mini.
Bal.
Requirement
in
ICICI-5000 ICICI-5000
Savings A/c.
HDFC-2500
Limit Exposure:Cash Segment ( Delivery)
1 time
3 times
Margin Segment ( Same Day )
3 to 25 times
6 times
Saving Bank A/c. With
ICICI Bank
ICICI,HDFC
Demat A/c. With
ICICI Bank
Indiabulls Securities
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Icicidirect.com vs. Indiabulls Competitive Advantage of ICICIdirect.com Highest limit exposure in case of margin segment (same day) given to the customers i.e. 3 to 25 times where in the Indiabulls it is only 6 times given. Custody charges is less than the Indiabulls i.e. 0.75 per month per ISIN where in Indiabulls it is 1.25 per month per ISIN.
Drawbacks of Icicidirect.com Account opening charge is higher than the Indiabulls i.e. Rs. 750 where in Indiabulls it is only Rs. 500. Brokerages is also higher than the Indiabulls i.e. in Icicidirect.com it is o.75% & 0.15% where in Indiabulls it is only 0.50% & 0.10% Annual service charge of demat account is also higher than the Indiabulls i.e. in icici it is Rs. 350 & in Indiabulls it is nil.
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Particulars
ICICI Direct
Share khan
A/c. Opening
750
500
Cash Segment ( Delivery )
0.75%
0.50%
Margin Segment ( Same Day )
0.15%
0.10%
A/c. Opening
NIL
NIL
Annual Service Chages
350
300
Market Buy
0.02%, Mini Rs. 20
NIL
Market Sell
0.04%, Mini Rs. 20
NIL
Off-Market Buy
0.02%, Mini Rs. 20
Rs. 18 per transaction
Off-Market Sell
0.04%, Mini Rs. 20
Rs. 18 per transaction
Rs. 35 per request, Rs. 2 per
Rs. 15 per request, Rs. 3 per
Dematerialization
certificate
certificate
Rematerialization
Rs. 20 per entry
Rs.15 per certificate.
Custody Charges
0.75 per month per ISIN
no charges
ICICI-5000
HDFC-2500+10000 Deposite
Cash Segment ( Delivery)
1 time
4 times
Margin Segment ( Same Day )
3 to 25 times
4 times
ICICI Bank
HDFC, UTI, GTB, IDBI, citi
Brokerage:-
Demat Charges:-
Mini.
Bal.
Requirement
in
Savings A/c.
Limit Exposure:-
bank
Saving Bank A/c. With Demat A/c. With
JATIN S. BHATT
ICICI Bank
Share khan
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Icicidirect.com vs. Sharekhan Competitive Advantage of ICICIdirect.com Highest limit exposure in case of margin segment (same day) given to the customers i.e. 3 to 25 times where in the Sharekhan it is only 4 times given. In Icicidirect.com only Rs. 5000 minimum balance requirement where in Sharekhan the customer have to kept minimum balance Rs. 2500+10000 deposit required in hdfc.
Drawbacks of Icicidirect.com Account opening charge is higher than the Sharekhan i.e. Rs. 750 where in Sharekhan it is only Rs. 500. Brokerages is also higher than the Sharekhan i.e. in Icicidirect.com it is o.75% & 0.15% where in Sharekhan it is only 0.50% & 0.10% Annual service charge of demat account is also higher than the Sharekhan i.e. in icici it is Rs. 350 & in Sharekhan it is Rs. 300.
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Limitation of the study The information given by the person of company may not be completely correct. Some information may be given wrongly which may not be factual. The complete parameters to compare the Online product are not included.
Visual look of the Software and different facilities of software are not included.
Only one person of a company is interviewed.All the parameters may not be relevant for all the companies.
Due to limitation of time and cost constraints a sample size of only 6 companies of online trading are chosen. This exploratory research is done focusing on the Comparative analysis scenario of Saurashtra region only therefore findings and suggestions given on the basis of this research and cannot be considered for the entire stock market Industry.
As we all know, security market is highly volatile. We may predict about it more accurate but due to uncertain driving forces the predictions may not work.
The market risks and uncertainties are always there
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RESEARCH FINDINGS Limit Exposure in case of margin segment (same day) is higher than all other companies. Account opening charge is also higher than the other companies. Still quotes of BSE trading time are late by 10 to 15 minutes. Some time we cannot execute trade on BSE market. Still transaction speed is not high in compare to other companies. Brokerage charges is also higher than the other companies. Some customers demanding more limits in deliver trading which is lower than other sites. Some customers are interested in account opening but not ready for maintaining minimum Rs. 5000 balance in saving account. Annual Service charge is higher than the other companies.
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RECOMMENDATIONS & SUGGESTIONS For Brokers Brokerage Firms need to ensure that their ability to provide effective customer service keeps pace with their growth, if you are marketing your firm to new customers, you better be able to provide them service when they do business with you. All firms, whether on-line, discount or full service, have an obligation to ensure the best execution of their customers‘ orders. Network infrastructure will have to be stabilized. The Internet an computers will have to penetrate further in day-to-day life of investors. When security and accessibility issues are resolved and technology stabilizes successful investor will find the actual time spent trading will be minimal. Nearly all the effort involved will relate to monitoring the standards that have been set. Not so hard, but not so easy
FOR COMPANY:
Company should decrease brokerage. Right now it is 0.75% on delivery and 0.15% on margin trading. Company should decrease the account opening charges so that more & more customers can be attracted. Annual charges should be decrease because the other companies have very less annual charges. Sometime problem arise on BSE market trading where we cannot execute trade on it. So company should improve infrastructure facility. Awareness should create among the people about this new type of technology with the help of seminar and expert session.
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FOR CUSTOMER:
Customer should not worry about brokerage part because services are far better and different types of products are there in the company. ICICI Direct.com is part of ICICI Group & this group is trusted by million of people.
For investors There is risk of loss associated with investing in securities regardless of the method used. New investors need to understand the principles of investing, their own risk tolerance, and their investment goals before venturing into the market. In addition, online investors may want to consider these other risks. High Internet traffic may affect online investors‘ ability to access their account or transmit their orders. Online investors should be skeptical of stock advice and tips provided in chat rooms or bulletin boards. Investors should do their own research before acting on these tips. Also, for some online investors, there is a temptation to "overtrade" by trading too frequently or impulsively without considering their investment goals or risk tolerance. Overtrading can effect investment performance, raise trading costs, and complicate your tax situation.
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CONCLUSION Online Trading is successful in other parts of the world, especially in the US. That‘s because it has a strong culture of using credit cards (plastic money) and a strong law and order system. If you look beyond the US, even other leading markets like Hong Kong are still in a premature stage for execution of internet trading. As for the future of internet broking in India, It sounds exciting, but when we talk about the net penetration level of telecommunication and computer usages, it is poor in India. Since the concept is new to investors, it is very important that they follow certain guidelines, which will ensure safe trading. Removing the mental block from the minds of the investor with regard to online trading. The Indian stock market faces the challenge of setting up this infrastructure. Another important point is people of India specifically; investors are not too much techno. This has been achieved through active use of cuttingedge technology and being improved by highly motivated and skilled employees. The success of e-broking would depend on addressing each and every issue faced by the investors in offline trading and delivering the service in a seamless manner backed by world-class customer service. Finally India needs a robust and world class IT and telecom infrastructure coupled with explosion in Internet penetration. In under served Internet market of India, this is one definite case of ―build and they will come.‖
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Bibliography
WEBSITES
http://www.hdfcsec.com http://www.indiabulls.com http://www.5paisa.com http://www.icicidirect.com http://www.sharekhan.com http://www.omkotak.com. http://www.HDFC.com http://www.indiabulls.com www.nsdr.com www.notension.biz www.traderji.com
BOOKS
Marketing Management
JATIN S. BHATT
- Philip Kotler
Research Methodology
- C.R Kothari
HRM
- K.Aswathapa
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