Icici Bank- Strategy Analysis

12524 Words Sep 16th, 2010 51 Pages
ICICI Bank : Strategy Analysis

Table of Contents ICICI Bank : Strategy Analysis 1 ICICI Bank 4 Brief History: Evolution of the Entity with respect to Time 4 Inception 4 Establishing Synergy: Consolidation 5 ICICI Bank in the Retail sector 6 How it all began 6 ICICI’s perspective of the retail market and the elements of strategy 7 Corporate relationships 7 Technology 8 Operational excellence 8 ICICI and International Business 9 International remittance key corridors for India 9 Business Model 10 ICICI Bank Approach 10 Agri and Microfinance sector 12 Rural, Micro-Banking & Agribusiness Group (RMAG) 13 Mapping the Possibilities 14 The Distribution Network 15 ICICI and Corporate Division 16 Leveraging Technology 17
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In the merger process one fully paid up equity share of ICICI Bank stood for two fully paid up equity shares of ICICI. The share exchange ratio was determined by two separate financial advisors and an independent accounting firm, on the basis of the valuation process carried out by them. The shares held by ICICI in ICICI Bank were not cancelled. They were delivered to a trust to be divested in future, the benefits of the divestments accruing to the merged entity. (Exhibit2)
Why: The growing competition in the industry, and the structural changes, happening very fast with changing regulations, initiated such a decision. The merger of ICICI Bank and ICICI, and two subsidiaries formalized the potential synergy that existed between them because of complementary services, products, and similar operational processes and ideology. The merger resulted in a winning combination of the deposit raising capability of the ICICI Bank with the large capital base of ICICI. It made the corporate relations built by ICICI easily accessible to ICICI Bank. It also integrated the retail operations of ICICI, and its two subsidiaries, with ICICI Bank. Thus the merger helped in creating a seamless line of services to both the corporate and the retail sectors.
Present Situation: An Overview
ICICI Bank presently is one of the most reputed financial companies in India. The second largest bank in India, it is also