Banks are an integral part of the development and functioning of a country and are indispensable to its flourishment. The banking sector is one of the most important sectors for a country and is the basis of all development and activities. Everything is dependent on the economy and further, the economy is dependent on banks. In India generally, there are two types of banks viz. private bank and government bank. Government banks are controlled by the central government. Private Banks are an industrial bank and are not nationalised. One such private bank of India is ICICI.
Full Form of ICICI
The full form of ICICI is the Industrial Credit and Investment Corporation of India. It is a multinational company which deals in banking and financial services. It was founded in 1994. ICICI is one of the 4 important and big banks of India. It was the second largest bank in India in 2014 in terms of total assets.
The headquarters of ICICI bank is at Mumbai, Maharashtra. It has its own subsidiaries in the United Kingdom and Canada. Apart from this, it has also its branches in countries like Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar, Oman and China. The bank also has its representative offices in UAE, Bangladesh and Indonesia.
The ICICI bank has a huge operational range in terms of banking and financial services. It has a variety of banking products and services as well as financial services on offer for its retail as well as corporate customers. The bank operates and delivers it various kinds of services and products with the help of subsidiaries. The main subsidiaries of the bank are life insurance, non-life insurance, asset management, venture capital and investment banking.
Some of the forms in which the ICICI bank grants finance are as follow:
• Offer and sale of industrial securities.
• Underwriting of public issues.
• Granting loans in rupees as well as in foreign currency.
• Granting credit facilities to manufacturers.
Short History of ICICI Bank
The venture of ICICI bank in India started from ICICI Limited, which was an Indian financial institution. The ICICI was set up in 1955 in India with the assistance of the World Bank, the government of India and the various representatives of Indian Industry. It was set up with the objective of creating a development financial institution to provide project financing to Indian industries and businesses. The ICICI Limited promoted ICICI bank in 1994 and was its subsidiary.
In the 1990s, the ICIC began expanding its services in the field of finance and economy. It transformed into a financial services group offering a huge variety of products and services to industries and businesses. The ICICI bank was created for this purpose and the ICICI Limited was no longer confined to merely an institution offering project financing to industries. The major breakthrough came in 1999 when the ICICI bank became the first financial institution from Asia to be listed on NYSE. Considering the increasing competition in the Indian banking sector and universal banking, it was decided to merge the ICICI Limited with the ICIC Bank. The merger of ICICI Bank and ICIC Limited was approved in October 2001 by the Boards of DireThe IFCI and SFCs bound themselves to loan movement and avoided guaranteeing and putting resources into business however they were approved to buy in for the offers and debentures of the organizations and to embrace endorsing business. Hence, a substantial number of exceptional endeavours confronted constant issues in bringing assets up in the capital market.
Moreover, they were not in a situation to anchor the ideal measure of credit help from the monetary foundations because of their thin value base. To empower mechanical improvement in the private division, a significant arrangement of endorsing office was viewed as important to quicken the period of the industrialization. To fill these holes, the ICICI was built upctors.
Objectives Of ICICI Bank
The various objectives of the ICICI Bank are:
• To help in the creation, development, progress and modernization of non-public business enterprises.
• To encourage, develop and promote the use of internal and external capital sources in business enterprises.
• To develop and provide equipment financing.
• To finance for the rehabilitation and assistance of industries.
In 1982, the ICICI gave another measurement to its trader managing an account division by offering to give advising to modern interest in India to non-inhabitant Indians and people of Indian birthplace living abroad. This is probably going to demonstrate not just the slightest costly course for innovative up degree yet additionally a wellspring of outside cash assets by the method for hazard capital.
The Corporation’s vision has been stretching out a long ways past its prompt capacity of financing mechanical undertakings. It has been taking a gander at all segments of the economy and wherever a need was seen, has structured either another idea or another instrument, or even another organization to take into account it. In such manner, its improvement exercises have incorporated such different zones as innovation, financing, venture advancement, rustic improvement, HR improvement and distributions.
Functions Of ICICI Bank
The ICICI Bank performs the following functions to achieve its objectives:
• It provides financial assistance to business enterprises and industries in terms of long-term and short-term loans.
• It sponsors, guarantees and underwrites issues of shares and other securities.
• It ensures the availability of funds for the purpose of reinvestment.
• It provides advisory services to;
• industries and companies under private sector on the topics such as policies, procedures and joint venture search.
• Central government as well as state governments on the topics of economy and finance for policy making.