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ICICI Bank
Tagline
Net Worth
$53,070,000,000
Started in (City)
Vadodara
Started in (Country)
India
Incorporation Date
05th December, 1994
Bankruptcy Date
-
About
ICICI Bank is one of the major private banking and financial services providers in India. It has played a very important role in shaping the banking system of our country. It offers a wide portfolio of products and services to its clients. Today ICICI Bank has a massive network of branches and ATMs all over the country. It is also one of the world-famous Indian Brands.
Beginning
● It was founded on 5 January 1994.
● It was promoted by Industrial Credit and Investment Corporation of India (ICICI), ICICI being the parent company, and ICICI Bank its a subsidiary company.
● The registered office of ICICI bank is located in Vadodara, Gujarat and the head office is located in Mumbai, Maharashtra.
● The bank was founded as the Industrial Credit and Investment Corporation of India Bank, later renamed as ICICI Bank.
● In 2002, ICICI and its other subsidiaries got merged with ICICI Bank, after getting approval from the board of directors of both ICICI and ICICI bank and later from Gujarat High Court in Ahmedabad.
Road to Success
In its 26 years of operations, ICICI Bank has reached a lot of milestones. It also played a major role in shaping the Indian Economy and. Indian Banking System.
Some of the important milestones that paved the way to success are:
● In 1987, ICICI Ltd and UTI set up CRISIL as India’s first professional credit rating agency.
● ICICI Bank was the first bank to launch Internet Banking in India.
● ICICI Bank was also the first bank to introduce Mobile ATMs in India.
● The first television commercial for 60 seconds was made in 1999.
● ICICI bank is the first Indian company, first bank, and first financial services company, to be listed on New York Stock Exchange.
● ICICI is the first financial institution to go for the placement of dematerialized debt securities.
● It is the first Indian bank to launch a Resident Foreign Currency (RFC) account.
● It is the first private sector bank to launch a PPF account facility at all its branches.
● It is one of the first banks to introduce account portability and also the only bank to offer portability on two additional channels - Internet Banking and Phone Banking.
● ICICI Bank launched the first electronic toll collection in association with the Ministry of Road Transport and National Highways Authority of India.
● It launched ’Pockets’ in 2015, a digital banking service that enables users to instantly transact money from any email ID, mobile number, friends on Facebook, and bank account.
● It launched the concept of floating rates for housing loans.
● In 2012, it set up the Infrastructure Debt Fund, it is the first-ever Debt Fund approved by RBI.
● In August 2018, it crossed 1 million FASTag issues.
Challenges
ICICI Bank has faced many challenges over the due course of its running time. ICICI now sees a painstaking decline in its profits, the due cause of the dip seems to resonate from the rising provision of bad loans. This affects the bank in major ways since this loss also means losing the trust of the investors, gaining which is a task in itself. Apart from profit margins and bad leadership decisions the bank has also met its share of controversy from giving out loans to influential borrowers through unethical ways, which was also the method for the recovery of the same money.
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 behavior. Incidents were reported wherein the defaulters were put to "public shame" by the recovery agents.
The bank also faced allegations of inappropriate behavior 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.
Failures
ICICI Bank was one of the leading Indian banks accused of blatant money laundering through violation of RBI guidelines in the famous CobraPost sting operation which shook up the Indian banking industry during April–May 2013.
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 the Money Laundering Control Act. 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 an inquiry. On 11 April 2013 the Deputy Governor of RBI, H R Khan reportedly said that the central bank was initiating action against ICICI Bank in connection with allegations of money laundering.
On 4 October 2018, the then MD & CEO Chanda Kochhar stepped down from her position following allegations of corruption. In January 2019, based on the report of an inquiry panel headed by Justice Srikrishna, the bank board officially terminated her from service. It also becomes one of the first in the country to ask for a clawback of bonuses and benefits. In 2020 the Enforcement Directorate provisionally seized assets and shares belonging to Chanda Kochhar with an estimated value of more than Rs 78 crore, in relation to the ICICI bank loan case.
Achievements
- 1999 - Best IT usage Award ,TCS Limited and Computer Society of India.
- 2000 - Best Bank Award, Global Finance.
- 2002 - Best Foreign Exchange Bank in India, Global Finance.
- 2006 - Best Bank of the Year 2006, Business India.
- 2008 - Symantec visionary awards for IT security.
- 2011 - Ranked 12th in the list of 500 largest companies by Fortune India.
- 2018 - Best Use of Data Analytics Award, Retail Banker International Awards.
- 2020 - Best SME Bank, Asiamoney Best Bank Awards.
Subsidies
- ICICI Bank Canada
- ICICI Bank USA
- ICICI Bank UK PLC
- ICICI Bank Germany
- ICICI Bank Eurasia Limited Liability Company
- ICICI Securities Holdings Inc.
- ICICI International Limited.
CEOs
- Chanda Kochhar
- Sandeep Bakhshi