AN ANALYTICAL STUDY OF VARIOUS POLICIES RELATED TO

PERSONAL FINANCING SERVICES OF ICICI BANK WITH SPECIAL

REFERENCE TO WESTERN UTTAR PRADESH

Manoj Kumar Agarwal, Research Scholar, M.J.P.Rohilkhand University, BareillyIndia

ABSTRACT
A bank is a financial institution that provides banking and other financial services to their
customers. In which, it provides fundamental banking services such as accepting deposits and
providing loans. In the banking system it provides cash management services for customers,
reporting the transactions of their accounts and portfolios, throughout the day. Private Banks in
India have a great history and started their service way back. Today India is a swamped with
many private national and international banks such as ING Vyasya Bank, Kotak Mahindra Bank,
SBI and its subsidiaries, HDFC Bank, ICICI Bank , HSBC, Citi bank and more.
The Government of India established ICICI in 1955 as a Financial Institution with the objective
to finance large industrial projects. ICICI was not a bank - it could not take retail deposits - and
nor was it required to comply with Indian banking requirements for liquid reserves. ICICI
borrowed funds from many multilateral agencies (such as the World Bank), often at concessional
rates. It used these to make large corporate loans. ICICI Bank became the largest bank in India in
terms of its market capitalization The principal objective was to create a development financial
institution for providing medium-term and long-term project financing to Indian businesses.
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 in the
areas of investment banking, life and non-life insurance, venture capital and asset management.
The purpose of this research paper is to analyses the various personal financing policies of
Indias largest Private Bank i.e. ICICI Bank with special reference to western Uttar Pradesh.
Keywords: Financial institutions, ICICI Bank, Personal Financing Policies, Banking Operations,
Customers.

INTRODUCTION
ICICI Bank (formerly Industrial Credit and Investment Corporation of India) is India's
largest private sector bank in market capitalization and second largest overall in terms of assets
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.
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 in the
areas of investment banking, life and non-life insurance, venture capital and asset
management. Mr. A. Ramaswami Mudaliar elected as the first Chairman of ICICI Limited.
ICICI emerges as the major source of foreign currency loans to Indian industry. Besides funding
from the World Bank and other multi-lateral agencies, ICICI was also among the first Indian
companies to raise funds from international markets. ICICI Bank introduced the concept of
floating rate for home loans in India. First rural branch and ATM launched in Uttar Pradesh at
Delpandarwa, Hardoi. ICICI Bank is India's second-largest bank with total assets of Rs. 4,736.47
billion (US$ 93 billion) at March 31, 2012 and profit after tax Rs. 64.65 billion (US$ 1,271
million) for the year ended March 31, 2012. The Bank has a network of 2,900 branches and
10,021 ATMs in India, and has a presence in 19 countries, including India. ICICI Bank became
the largest bank in India in terms of its market capitalization.
The bank operates and supports a diverse range of social projects in the areas of primary
education, healthcare, micro-finance, environment, research & bio technology, finance &
development. Keeping view on the fulfillment of the felt needs of the public in this rapidly
changing social status the purpose of the present study is to focus the overall reasons for standard
of living with specific help through ICICI bank. ICICI Banks work in the area of development
aims at facilitating wider participation by Indias poorer communities in social and economic
process. Its efforts are broadly divided into two spheres partnership based development
initiatives and market-based direct initiatives. For those initiatives that seek to make a broader
impact on society, ICICI Banks strategy has been to identify partners and work with them to
build competencies and effectiveness on the field. The Bank has taken a more market-based
direct approach for those initiatives that directly impact the economic well-being of individuals.
Besides, in regards to ICICI Bank setup the DISHA Trust in April 2007 as part of ICICI Banks

Corporate Social Responsibility activity. It provides the financial education, awareness about
financial products and services and promotes for good understanding and decision making.
ICICI Bank now has the largest market share among all banks in retail or consumer financing.
ICICI Bank is the largest issuer of credit cards in India It was the first bank to offer a wide
network of ATM's and has a large network of ATM's.

LITERATURE REVIEW
Zeithaml, Valarie A, Berry, Leonard L and Parasuraman, A, (1996) offered a conceptual
model of the impact of service quality on particular behaviors that signal whether customers
remain with or defect from a company. Results from a multi company empirical study examining
relationships from the model concerning customers' behavioral intentions show strong evidence
of their being influenced by service quality.
Timmers, P., 1998. concluded that ICICI Bank, State Bank of India and Bank of India now
have mobile ATMs or vans that go along a particular route in a city and are stationed at strategic
locations for a few hours every day. This saves the bank infrastructure costs since it has one
mobile ATM instead of multiple stationary ones. Websites for ICICI Bank, HDFC Bank, SBI,
Corporation Bank, UTI Bank and Global Trust Bank were organized into clean sections, with
definite points as to where to begin a search for specific information.
Fernando Aportelo, Bank of Mexico December 1999 Assessed the impact of increasing
financial access on low-income people savings. Effects on households saving rates and on
different informal savings instruments are considered. The paper uses an exogenous expansion of
a Mexican savings institute, targeted to low-income people, as a natural experiment and the 1992
and 1994 National Surveys of Income and Expenditures. Results show that the expansion
increased the average saving rate of affected households by more than 3 to almost 5 percentage
points. The effect was even higher for the poorest households in the sample: their saving rate
increased by more than 7% in some cases. Furthermore, the expansion,

in general, had no

effect on high income households. In the case of informal savings instruments, evidence of
crowding out of these instruments caused by the expansion is limited. Results do not rule out the
possibility that a considerable fraction of the increase in households savings could have come
from new savings.
Banerjee, Abhijit, and Kaivan Munshi. 2004. Compare the performance of public and private
banks as financial intermediaries and conclude that the public banks have been less aggressive

than private banks in lending, in attracting deposits, and in setting up branches. Bailouts of the
public banks have proved more expensive for the government, but once we control for
differences in size between the public and private banks, this conclusion is less clear-cut.
Meenakshi Rishi and Sweta C. Saxena 2004 charts out the path of technological innovation in
the Indian banking industry post-economic liberalization (1991-92) and identifies initial
conditions in terms of competitive environment and regulatory pressures that have contributed to
the diffusion of these innovations. The article highlights the role of labour unions in public sector
banks and their initial opposition to technological adoption. The empirical analysis demonstrates
the superior performance of the early adopters of technology (private sector and foreign banks)
as measured by productivity, returns on equity, and market share, as compared to the late or
passive adopters (public sector banks).
Bargal and Sharma (2008) analyzed the role of service marketing in banking sector. The
identified the important service factors in the banking sector are diversified services, flexible
business transaction hours, accessibility of banking location, installation of web system,
profession training to then employees, customers complaint system and performance based
appraisal system to enrich their services to their customers.
Spandana2009 Started lending in a randomly chosen 52 of the 104. Researchers followed up by
surveying more than 6,000 households between August2007 and April 2008, restricting their
visits to families that seemed more likely to borrow: ones that had lived in the area at least three
years and had at least one working-age woman. The surveyors made sure not to visit an area until
Spandana had been there at least a year. They surveyed in treatment areas (ones where
Spandana worked) and control ones (where it did not yet).

OBJECTIVES OF THE STUDY

To analyze the personal financing services offered by private sector banks as well as
ICICI bank.

To study the customer satisfaction for personal financing services of ICICI Bank

HYPOTHESIS
There is no significant difference between private sector banks as well as ICICI bank in relation
to personal financing services offered.

Research Methodology:
Sample size: 353

Locale: western U.P.

Research type: Analytical and Descriptive
Respondents: Customers of Private banks

ANALYSIS OF PERSONAL FINANCING SERVICES OFFERED BY ICICI

BANK
Profile of Western Uttar Pradesh:
The area of my research study was western Uttar Pradesh. In my study I have taken the various
district and divisions in which ICICI Bank work and have the branches and ATMs.
Western Uttar Pradesh includes 22 districts in six divisions:

Meerut division

Saharanpur division

Moradabad division

Bareilly division

Agra division

Aligarh division

Meerut division is an administrative geographical unit of Uttar Pradesh state of India. Meerut is
the

administrative

headquarters

of

the

division.

Currently,

the

division

consists

of districts of Meerut, Bulandshahr, Gautama Buddha Nagar, Ghaziabad, and Bagpat. ICICI
Bank has 10 branches in Meerut, 2 branches in Bulandshahr, 15 branches in Gautam Buddha
Nagar, 13 branches in Ghaziabad and only 1 branch in Bagpat.
Saharanpur division
This division has two districts under its jurisdiction: Saharanpur and Muzaffar Nagar.ICICI Bank
has 2 branches in Saharanpur and 4 branches in Muzaffar Nagar.
Moradabad division is an administrative geographical unit of Uttar Pradesh state of India.
Moradabad is the administrative head quarters of the division. Currently, the division consists of
districts of Moradabad, Bijnor, Rampur, J.P.Nagar and Bhim Nagar. ICICI Bank has 4 branches
in Moradabad, 4 branches in Bijnor, 1 branch in Rampur, and 1 branch in Jyotiba Rao Phule
Nagar.

Bareilly division is an administrative geographical unit of Uttar Pradesh state of India. Bareilly
is the administrative head quarters of the division. Currently, the division consists of districts of
Bareilly, Badaun, Pilibhit, Shahjahanpur. ICICI Bank has 3 branches in Bareilly district, 2
branches in Pilibhit district and 1 branch in Shahjahanpur district.
Agra Division is an administrative unit of Indian state of Uttar Pradesh. Agra Division consists
of district of Agra, Firozabad, Mainpuri and Mathura. ICICI Bank has 8 branches in Mathura, 2
branches in Firozabad, 1 branch in Mainpuri and 4 branches in Mathura district.
Aligarh division is an administrative unit of Indian state of Uttar Pradesh. Aligarh division
consists of district of Aligarh, Etah, Maha Maya Nagar (Hathras), Kanshi Ram Nagar (Kasganj).
ICICI Bank has 2 branches in Aligarh, 2 branches in Etah, 1 branch in Hathras and 1 branch in
Kasganj district.
Private Sector Banks like ICICI Bank, HDFC Bank, Axis Bank and many others provides
different type of products and services to its customers in Western Uttar Pradesh. These products
and services of ICICI Bank are divided into three basic segments- Personal Banking, Wholesale
Banking and NRI Banking.
ICICI BANKS PRODUCTS AND SERVICES
ICICI Bank operates on the following basic segments:
Table-I
Personal banking

Wholesale banking

NRI banking

Deposits

Corporate Net Banking]

Money Transfer

Loans

Cash management

Bank accounts

Cards

Trade Services

Investments

Investments

FX Online

Property Solutions

Insurance

SME Services

Insurance

Demat Services

Online Taxes

Loans

Wealth Management

Custodial Serviced

Personal Financing Policies:

ICICI Bank offers wide variety of Deposit Products to fulfill the requirements of the customers.
Saving Accounts

ICICI Bank offers a power packed Saving Account with a host of convenient features and
banking channels to transact through.
Senior Citizen Services
Bank provides the services for those who are 60 years and above. The senior citizen services
from ICICI Bank have several advantages that are tailored to bring more convenience and
enjoyment in their life.
Young Stars
Bank provides the services to the children to manage their personal finance.
Fixed Deposits
ICICI Bank provides the services of fixed deposits to their customers.
Recurring Deposits
Through ICICI Bank Recurring Deposit scheme customers can invest small amounts of money
every month that ends up with a large saving on maturity.
Home Loan:
ICICI Bank is the no 1 Home Loan providers in the country who offers some unbeatable benefits
to its customers like simplified documentation and guidance throughout the process.
Personal Loan
ICICI Bank provides the Personal Loan to its customers easily and absolutely hassles free with
minimum documentation up to Rs. 15 lakhs.

Car Loan
ICICI Bank is the no 1 financier for Car Loans in the country with flexible schemes and quick
hassle free processing.
Commercial Vehicle Loans
ICICI Bank provides funding of new vehicles, refinance on used vehicles, balance transfer on
high cost loans, top up on existing loans, extend product and working capital loans.
Two wheeler Loans
ICICI Bank is the no. 1 financier for two wheeler Loans in the country with flexible schemes and
quick hassle free processing. Bank provides finance up to 90% of the on road cost of the vehicle,
repayable in convenient repayment options and comfortable tenors from 6 months to 36 months.

Farm Equipment Loans

ICICI Bank provides finance for almost all leading tractor manufacturers in the country with
flexible repayment options in monthly, quarterly and half yearly basis from 1 year to 9 years.
Personal Financing Services:
Credit cards
ICICI Bank provides Credit Cards for the facility of cash, convenience and a rage of benefits,
anywhere in the world. These benefits are ranged from life time free cards, insurance benefits
global assistance service, discounts, utility payments, travel discounts and much more.
Debit Cards
ICICI Bank provides the debit cards to its customers to access their bank account around the
clock and around the world. From the debit cards customers can shop at more than 1,00,000
merchants in India and 13 million merchants worldwide.
Travel Card
ICICI Bank provides the facility of Travel Cards to its customers to travel the world hassle free
with US Dollar, Euro, Pound Sterling or Swiss Francs.

Analysis of customer satisfaction for personal financing services by ICICI

Bank
The data was collected for 353 respondents from western U.P., out of which 234 were male and
119 were female. Among these respondents 83 were in government job, 136 were engaged in
private sector, 91 were having their own business and 43 were others including house wives,
farmers, students etc. Most of the respondents, 108 were of the age from 46 years to 54 years, 81
were from 36 years to 45 years, 61 were from 26 years to 35 years, 43 respondents were from 18
years to 25 years, 33 were from 55 years to 60 years of age group and 25 respondents were above
60 years of age. Out of 353 customers only 169 customers of private sector banks have given the
response.
PARAMETER

Mean

Satisfaction with the bank or financial institution from where personal 4.17

S.D

C.V.

1.30

0.312

financing is availed
Satisfaction for full details of pay off procedure

4.11

1.87

0.454

Satisfaction with the procedures implemented by the bank

3.06

1.28

0.42

Reliability of personal financing services of bank

3.17

1.25

0.39

Authenticity of personal financing services of bank

3.07

1.27

0.41

Satisfaction towards quality of service of personal financing services 3.24

1.31

0.40

1.37

0.58

of bank
Satisfaction towards processing fees of personal financing services of 2.38
bank

FINDING & DISCUSSION

i). It is being observed that the satisfaction with the bank is moderate (CV 0.312) towards bank
from where the personal finance is availed. However, this satisfaction is greater than the
satisfaction towards processing fees of personal financing services of bank (CV 0.58).
ii).The reliability of private bank is moderate and satisfaction towards reliability is greater than
other parameters.
iii).The satisfaction for full details of pay off procedure is somewhat shows higher degree of
variation (CV 0.45 & SD 1.87).
iv).The quality of services are observed as moderate (CV 0.40) and closure to the authenticity
(CV 0.41)
v).The satisfaction with the procedure implemented is moderate with CV 0.42.

HYPOTHESIS TESTING
There is no significant difference between private sector banks as well as ICICI bank in
relation to personal financing services offered.
The general variations show that the variation level of satisfaction towards different parameters
is moderate. Therefore it is concluded that there is no significant difference exist between private
sector banks as well as ICICI Bank in relation to personal financing services offered.
Hence hypothesis is accepted.

LIMITATIONS OF THE STUDY

There is no research study without limitations. There are a few limitations in the present study.
These limitations are discussed as follows:
1. The researcher believes that the result of this study may be limited in terms of generalization
because it refers only to a part of the country and this extinguishes the opportunity of making
comparison and generalizing to the other parts of country.
2. The sample of the study consisted of only 353 respondents due to time constraints.
3. The questionnaires were mostly filled by the customers in the presence of bank officials, so it
is quite possible that the respondents may avoid giving negative responses fearing retaliation.

SUGGESTIONS FOR FUTURE RESEARCH:

Research can be done for many other private as well as public sector banks
Research can be done in future in other locales of the country

SUGGESTIONS:
To penetrate in the rural market.
Free accident insurance cover for home loan customers should be provided
To decrease the training fees compare to Competitors (fees of advisors training).
To provide plans for the low-income group.
Relevant information should be provided to customers time to time.
Proper credit appraisal of the customers should be done.
Rate of interest should be competitive with other financial institutions.
Daily reducing option should be introduced
To increase the incentive package.
Hope these points will be taken into consideration.

CONCLUSION:
After doing a lot of research and studying the materials available on newspapers, magazines,
internet, and journals. I want to conclude that people prefers ICICI Bank more than HDFC Bank
for personal loans in private sector. As private banks are coming daily in our country still,
Mostly people prefers government banks for loans, especially older persons are more dependent
on the government banks. It is true that younger population preference is changing and they
prefer more private banks because of services and facilities provided by the private banks. The
interest rate is lower in government banks but services are not up to the mark as in the private
banks. The appearance of banks also becomes very important for the present generation and

private banks put their complete efforts on this, which is lacking in government banks. At last I
can only say that ICICI Bank enjoys leading position in personal financing service sector.

REFERENCES:
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Timmers, P. (1998). "Business Models for Electronic Markets", Electronic Markets International Journal of Electronic Commerce & Business Media, vol. 8, no. 2, pp. 3-8.
http://papers.ssrn.com accessed on 21-12-2012.
http://www.arraydev.com accessed on 21-12-2012.
http:/ Zeithaml, Valarie A., Berry, Leonard L. & Parasuraman, A. (1996). Journal of
Marketing, 60, 31-46. accessed on 21-12-2012.

www.brookings.edu accessed on

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