ICICI Bank

ICICI Bank Limited is an Indian multinational bank and financial services company headquartered in Mumbai with a registered office in Vadodara. It offers a wide range of banking and financial services for corporate and retail customers through various delivery channels and specialized subsidiaries in the areas of investment banking, life, non-life insurance, venture capital and asset management.

ICICI Bank has a network of 7,246 branches and 10,610 ATMs across India.<ref>Template:Cite web</ref> It also has a presence in 11 countries.<ref>Template:Cite web</ref> The bank has subsidiaries in the United Kingdom and Canada; branches in United States, Singapore, Bahrain, Hong Kong, Qatar, Oman, Dubai International Finance Centre, China<ref>Template:Cite news</ref> and South Africa;<ref>Template:Cite news</ref> as well as representative offices in United Arab Emirates, Bangladesh, Malaysia and Indonesia. The company's UK subsidiary has also established branches in Belgium and Germany.<ref>Template:Cite web</ref> The Reserve Bank of India (RBI) has identified the State Bank of India, HDFC Bank, and ICICI Bank as domestic systemically important banks (D-SIBs), which are often referred to as banks that are "too big to fail".<ref>Template:Cite web</ref><ref>Template:Cite web</ref>

History

The Industrial Credit and Investment Corporation of India (ICICI) was a government institution established on 5 January 1955 and Sir Arcot Ramasamy Mudaliar was elected as the first Chairman of ICICI Ltd. It was structured as a joint-venture of the World Bank, India's public-sector banks and public-sector insurance companies to provide project financing to Indian industry.<ref>Template:Cite web</ref><ref>Template:Cite web</ref> ICICI Bank was established by ICICI as a wholly owned subsidiary in 1994 in Vadodara. The bank was founded as the Industrial Credit and Investment Corporation of India Bank, before it changed its name to ICICI Bank. 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.<ref>Template:Cite news</ref> The merger of parent ICICI Ltd. into its subsidiary ICICI Bank led to privatization.

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. ICICI Bank launched Internet Banking operations in 1998.<ref>Template:Cite web</ref>

ICICI's shareholding in ICICI Bank was reduced to 46% through a public offering of shares in India in 1998, followed by an equity offering in the form of American depositary receipts on the NYSE in 2000.<ref>Template:Cite web</ref> ICICI Bank acquired the Bank of Madura Limited in an all-stock deal in 2001 and sold additional stakes to institutional investors during 2001–02.<ref>Template:Cite news</ref> In 1999, ICICI become the first Indian company and the first bank or a financial institution from non-Japan Asia to be listed on the NYSE.<ref>Template:Cite web</ref>

ICICI, ICICI Bank, and ICICI subsidiaries ICICI Personal Financial Services Limited and ICICI Capital Services Limited merged in a reverse merger in 2002.<ref>Template:Cite news</ref> During the 2008 financial crisis, customers rushed to ICICI ATMs and branches in some locations due to rumours of bank failure. The Reserve Bank of India issued a clarification on the financial strength of ICICI Bank to dispel the rumours.<ref>Template:Cite news</ref>

In 2015, ICICI unveiled an outward remittance platform called Money2World for online outward remittance transactions for non-ICICI and ICICI customers.<ref>Template:Cite web</ref><ref>Template:Cite web</ref> In March 2020, the board of ICICI Bank Ltd. approved an investment of Template:INRConvert in Yes Bank, resulting in a 5% ownership interest in Yes.

File:ICICI Bank Towers Hyd.jpg

ICICI Bank office in Financial District, Hyderabad.

Acquisitions

• 1996: ICICI Ltd. A financial institution with headquarters in Mumbai<ref name="ICICI Bank Ltd">Template:Cite news</ref>
• 1997: ITC Classic Finance. Incorporated in 1986, ITC Classic was a non-bank financial firm that engaged in hire, purchase and leasing operations. At the time of being acquired, ITC Classic had eight offices, 26 outlets and 700 brokers.<ref>Template:Cite news</ref>
• 1997: SCICI (Shipping Credit and Investment Corporation of India)<ref>Template:Cite news</ref>
• 1998: Anagram (ENAGRAM) Finance. Anagram had a network of some 50 branches in Gujarat, Rajasthan, and Maharashtra that were primarily engaged in the retail financing of cars and trucks. It also had some 250,000 depositors.<ref>Template:Cite news</ref>
• 2001: Bank of Madura<ref>Template:Cite newsTemplate:Dead linkTemplate:Cbignore</ref>
• 2002: The Darjeeling and Shimla branches of Grindlays Bank<ref>Template:Cite news</ref>
• 2005: Investitsionno-Kreditny Bank (IKB), a Russian bank<ref>Template:Cite news</ref>
• 2007: Sangli Bank. Sangli Bank was a private sector unlisted bank, founded in 1916, and 30% owned by the Bahte family. Its headquarters were in Sangli in Maharashtra, and it had 198 branches. It had 158 in Maharashtra and 31 in Karnataka, and others in Gujarat, Andhra Pradesh, Tamil Nadu, Goa, and Delhi. Its branches were relatively evenly split between metropolitan areas and rural or semi-urban areas.<ref>Template:Cite news</ref>
• 2010: The Bank of Rajasthan (BOR) was acquired by the ICICI Bank in 2010 for Template:INRConvert. Reserve Bank of India was critical of BOR's promoters not reducing their holdings in the company. BOR has since been merged with ICICI Bank.<ref name="ICICI Bank Ltd"/>

Role in Indian financial infrastructure

ICICI Bank has contributed to the setting up of a number of Indian institutions to establish financial infrastructure in the country over the years:

• In 1992, India's leading financial institutions, including ICICI Ltd., promoted the National Stock Exchange of India on behalf of the Government of India to establish a nationwide trading facility for equities, debt instruments, and hybrids, ensuring equal access to investors across the country through an appropriate communication network.<ref>Template:Cite web</ref>
• In 1987, ICICI Ltd along with UTI set up CRISIL as India's first professional credit rating agency.<ref>Template:Cite web</ref>
• NCDEX (National Commodities and Derivatives EXchange) was set up in 2003, by ICICI Bank Ltd, LIC, NABARD, NSE, Canara Bank, CRISIL, Goldman Sachs, Indian Farmers Fertiliser Cooperative Limited (IFFCO) and Punjab National Bank.<ref>Template:Cite web</ref>
• ICICI Bank facilitated the setting up of "FINO Cross Link to Case Link Study" in 2006, as a company that would provide technology solutions and services to reach the underserved and underbanked population of the country. Using technologies like smart cards, biometrics and a basket of support services, FINO enables financial institutions to conceptualise, develop and operationalise projects to support sector initiatives in microfinance and livelihoods.<ref>Template:Cite web</ref>
• Entrepreneurship Development Institute of India (EDII), was set up in 1983, by the erstwhile apex financial institutions like IDBI, ICICI, IFCI and SBI with the support of the Government of Gujarat as a national resource organisation committed to entrepreneurship development, education, training and research.<ref>Template:Cite web</ref>
• North Eastern Development Finance Corporation Ltd. (NEDFi)<ref>Template:Cite web</ref> was promoted by national-level financial institutions like ICICI Ltd in 1995 at Guwahati, Assam for the development of industries, infrastructure, animal husbandry, agri-horticulture plantation, medicinal plants, sericulture, aquaculture, poultry and dairy in the North Eastern states of India.<ref>Template:Cite web</ref>
• Following the enactment of the Securitisation Act in 2002, ICICI Bank, together with other institutions, set up Asset Reconstruction Company India Limited (ARCIL) in 2003. ARCIL was established to acquire non-performing assets (NPAs) from financial institutions and banks with a view to enhance the management of these assets and help in the maximisation of recovery.<ref>Template:Cite web</ref><ref>Template:Cite web</ref>
• ICICI Bank helped establish India's first national credit bureau, Credit Information Bureau of India Limited (CIBIL), in 2000. CIBIL provides credit information reports to its members, containing the credit history of both commercial and consumer borrowers.<ref>Template:Cite web</ref>

Products

ICICI Bank offers products and services such as savings and current accounts,<ref>Template:Cite news</ref> trade and forex services, fixed and recurring deposits, business loans, home loans, personal loans, auto loans, and gold loans, NRI Banking services, remittances, card services, lockers, agri and rural services.<ref name=official>Template:Cite web</ref> The digital platforms that ICICI Bank offers include iMobile Pay,<ref name=iMobile>Template:Cite news</ref> InstaBiz,<ref name=InstaBIZ>Template:Cite news</ref> Digital Rupee App,<ref>Template:Cite news</ref> Retail Internet Banking, Corporate Internet Banking,<ref name=official/> Money2India, Money2World,<ref>Template:Cite news</ref> a digital wallet named Pockets,<ref>Template:Cite news</ref> and a digital banking suite called ICICI Stack.<ref>Template:Cite web</ref>

Subsidiaries

ICICI Securities

ICICI Securities Limited was established in March 1995 as a wholly-owned subsidiary of ICICI Bank.<ref>Template:Cite web</ref><ref>Template:Cite web</ref> The company provides services in equity and derivatives trading, as well as research related to stock and commodity markets. Its retail broking platform, ICICI Direct, facilitates the distribution of third-party financial products, including mutual funds, insurance, fixed deposits, bonds, exchange-traded funds, and pension schemes.<ref>Template:Cite news</ref> Template:Main

ICICI Bank Canada

ICICI Bank Canada is a wholly owned subsidiary of ICICI Bank, whose corporate office is located in Toronto. Established in December 2003,<ref name="icici-bank-canada-01">Template:Cite web</ref> ICICI Bank Canada is a full-service direct bank with assets of about $6.5 billion as of 31 December 2019.<ref name="icici-bank-canada-01" /> It is governed by Canada's Bank Act and operates under the supervision of the Office of the Superintendent of Financial Institutions.<ref name="osfi-wwr-foreignbanks">Template:Cite web</ref> The bank has seven branches in Canada.<ref name="icici-bank-canada-01" />

In 2003, ICICI Bank Canada was established as a Schedule II (foreign-owned or -controlled) bank. It was incorporated in November and opened its head office and downtown Toronto branch in December.<ref name="icici-bank-canada-01" /> In 2004 it launched an online banking platform. In 2005, it launched its financial advisor services channel. In 2008, the bank relocated its corporate office to the Don Valley Business Park in Toronto. In 2010, it launched a mortgage broker service. In 2014, the bank launched a mobile banking app.

ICICI Bank Canada is a member of the Canadian Bankers Association (CBA);<ref name="cba">Template:Cite web</ref> a registered member with the Canada Deposit Insurance Corporation (CDIC),<ref name="cdic">Template:Cite web</ref> a federal agency insuring deposits at all of Canada's chartered banks; Interac Association;<ref name="interac-corp">Template:Cite web</ref> Cirrus Network; and The Exchange Network.<ref name="exchange-network">Template:Cite web</ref>

ICICI Bank UK PLC

ICICI Bank UK PLC was incorporated in England and Wales on 11 February 2003, as a private company with the name ICICI Bank UK Ltd. It then became a public limited company on 30 October 2006.<ref name="icici-bank-uk-01">Template:Cite web</ref> Presently the Bank has seven branches<ref>Template:Cite web</ref> in the UK: one each in Birmingham, East Ham, Harrow, London, Manchester, Southall and Wembley.

The bank currently has seven branches in the UK. ICICI Bank UK PLC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority. It is covered by the Financial Services Compensation Scheme (FSCS). The bank has a long-term foreign currency credit rating of Baa1 from Moody's. On 31 March 2019, it had a capital adequacy ratio of 16.8%.<ref name="icici-bank-uk-01"/>

ICICI Bank UK PLC offers products and services such as a current account, savings account, remittance to India, safe deposit box, NRI Services, business banking, foreign exchange services, commercial real estate and corporate banking.<ref>Template:Cite web</ref> In 2019, ICICI Bank UK PLC launched an instant account opening facility through its iMobile app.<ref>Template:Cite web</ref><ref>Template:Cite web</ref>

ICICI Bank Regional Subsidiaries

ICICI Bank has operations in Bahrain, Germany, Europe, Hong Kong, and China in addition to the countries mentioned above.

Controversies

Inhumane debt recovery methods

A few years after its rise to prominence in the banking sector, ICICI Bank faced allegations on the recovery methods it used against loan payment defaulters. A number of cases were filed against the bank and its employees for using "brutal measures" to recover the money. Most of the allegations were that the bank was using goons to recover the credit card payments and that these "recovery agents" exhibited inappropriately and in some cases, inhuman behaviour. Incidents were reported wherein the defaulters were put to "public shame" by the recovery agents

The bank also faced allegations of inappropriate behaviour in recovering its loans. These allegations started initially when the "recovery agents" and bank employees started threatening the defaulters. In some cases, notes were written by the bank's employees asking the defaulters to "sell everything in the house, including family members", were found. Such charges faced by the bank rose to a peak when suicide cases were reported, wherein the suicide notes spoke of the bank's recovery methods as the cause of the suicide. This led to legal battles and the bank paying huge compensation.<ref name="RBI warns ICICI Bank on recovery agents">Template:Cite news</ref><ref name="How to deal with rising abuse of bank recovery agents">Template:Cite news</ref>

Money laundering allegations

ICICI Bank was one of the leading Indian banks accused of blatant money laundering through violation of RBI guidelines in the famous CobraPost<ref>Template:Cite web</ref> sting operation which shook up Indian banking industry during April–May 2013.<ref>Template:Cite news</ref>

On 14 March 2013 the online magazine Cobrapost released video footage from Operation Red Spider showing high-ranking officials and some employees of ICICI Bank agreeing to convert black money into white, an act in violation of Prevention of Money Laundering Act, 2002. The Government of India and Reserve Bank of India ordered an inquiry following the exposé. On 15 March 2013, ICICI Bank suspended 18 employees, pending inquiry.<ref name="Money laundering case: ICICI bank suspends 18 employees">Template:Cite news</ref><ref name="Probes Begin as Top Indian Banks Are Embroiled in Sting Operation">Template:Cite web</ref><ref name="India's Private Banks Under Scanner: Is RBI to be Blamed for Money Laundering?">Template:Cite news</ref> On 11 April 2013 the Deputy Governor of RBI, Harun Rashid Khan reportedly said that the central bank was initiating action against ICICI Bank in connection with allegations of money laundering.<ref name="Cobrapost expose: IRDA report likely next week">Template:Cite news</ref><ref name="Cobrapost expose: RBI initiating action against banks over money laundering allegations">Template:Cite news</ref>

Chanda Kochhar fraud case

On 4 October 2018, the then MD & CEO Chanda Kochhar stepped down from her position following allegations of corruption.<ref>Template:Cite news</ref> In January 2019, based on the report of an enquiry panel headed by Justice Srikrishna, the bank board officially terminated her from service. It also become one of the first in the country to ask for a claw back of bonuses and benefits.<ref>Template:Cite web</ref> In 2020 the Enforcement Directorate provisionally seized assets and shares belonging to Chanda Kochhar with an estimated value of more than Template:INRConvert, in relation to the ICICI bank loan case.<ref>Template:Cite web</ref>

See also

• Banking in India
• List of banks in India
• Reserve Bank of India
• ICICI Lombard General Insurance
• ICICI Prudential Life Insurance
• ICICI Prudential Mutual Fund

Further reading

• Template:Cite book
• Template:Cite journal
• Template:Cite journal

External links

• Template:Official website