Page 129 - DCOM208_BANKING_THEORY_AND_PRACTICE

Banking Theory and Practice

Notes

Caselet Corporate Banking Business of ICICI Bank

CICI Bank provides innovative financial solutions to its corporate clients, tailored to
meet their requirements, while diversifying its revenue streams and generating
Iadequate return on risk capital through risk-based pricing models and proactive
portfolio management. Its focus in the financial year 2003 is on technology-driven
enhancement of delivery capabilities to offer improved service levels to clients. It set up
centralized processing facilities for back office operations where technology is leveraged
to benefit from economies of scale arising out of large transaction volumes. During the
year it continued to expand the scope of its Web-based services. ICICI Bank provides
corporate internet banking services through ICICIebusiness.com, a single point
web-based interface for all corporate products. The portal enables clients to conduct their
banking business with ICICI Bank through the Internet in a secure environment.
ICICI Bank offers online foreign exchange and debt securities trading services. A dedicated
product and technology group develops and manages back-office processing and delivery
systems. Dedicated relationship groups for corporate clients and the government sector
focuses on expanding the range and depth of its relationships in these sectors. In the
corporate segment, it focuses on leveraging its relationships to expand the range of products
and services to channel finance, transaction banking and non-fund based products.
ICICI Bank has strong relationships with several large public sector companies and state
governments and it is leveraging these relationships to expand the range of transaction
banking services. It has already been empanelled for collection of sales tax in eight states.
It continued to focus on corporate lending transactions including working capital finance
to highly rated corporate, structured transactions and channel financing. It also focused on
leveraging its skills in originating and structuring transactions as well as on its ability to
take large exposures to adopt an originate-and-sell-down strategy.

This not only increased the risk-adjusted return on the capital employed but also enabled
it to offer a comprehensive solution to its corporate clients. ICICI Bank’s dedicated
structured finance, credit and markets group, with expertise in financial structuring and
related legal, accounting and tax issues, actively supports the business groups in designing
financial products and solutions. This group is also responsible for managing the asset
portfolio by structuring portfolio buy outs and sell-downs with a view to increase the
risk-adjusted return on the capital. During fiscal 2003, ICICI Bank focused on the
agri-financing segment and developed several innovative structures for agri-business,
including dairy farming, farmer financing and warehouse-receipt-based financing.
It achieved robust growth in this segment and is working with state governments and
agri-based corporate to evolve viable and sustainable systems for financing agriculture. It
has also integrated its rural banking, micro-finance and agri-financing activity to offer
integrated banking services in rural areas.
Source: www.icicibank.com/

The Global Relationship Management teams of the banks are tasked with understanding in
depth the sectors in which clients operate with the aim of adding value through detailed industry
knowledge and structured financial solutions.
Sector-based Client Service teams that combine relationship managers, product specialists and
industry specialists to develop customized financial solutions service clients are engaged.

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