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Chapter 1

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Chapter 1 Reward System, Performance & Banks – An

Introduction

1.1 Reward System

1.2 Nature of Reward System

1.3 Components of Reward System

1.3(a) Compensation

1.3(b) Benefits

1.3(c) Recognition

1.3(d) Career Opportunities

1.3(e) Empowerment

1.4 Challenges Inherent in Reward system

1.5 Effects of Reward System : Positive & Negative

1.6 Different terms associated with Reward System

1.7 Performance Management

1.8 Dimensions of individual performance

1.9 Different terms associated with performance

1.10 Historical framework of Banks

1.11 Structure of Banks

1.12 Private Sector Banks

1.13 Corporate Profile

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Chapter 1 Reward System , Performance & Banks – An Introduction

The first area of research focuses on the concept of reward system & performance

. It involves a detailed study on the application of these concepts in the banking

Industry and specially the private sector banks. This chapter will not only throw

light on some of the important aspects but will provides ideas and possible

answers, supported by research, for further discussions and research.

1.1 REWARD SYSTEM

The only way employees will fulfill the dream of organization is to share in the

dream of the employees . Reward systems are the mechanisms that make this

happen .Employee reward represents one of the central pillars supporting the

employment relationship (Kessler, 2005): Its management is likely to influence

the character and quality of that relationship and its outcomes. Reward refers to all

of the monetary, non-monetary and psychological payments that an organization

provides to its employees in exchange for the work they perform. Employee

compensation’, ‘remuneration’ or ‘reward’ (terms that may be used

interchangeably in the literature) may be defined as ‘all forms of financial returns

and tangible services and benefits employees receive’ (Milkovich and Newman,

2004: 3).

Reward ( Compensation ) management is a core facet of the employment relationship

. Employee ‘reward(s)’ may, however, be differentiated between: extrinsic, tangible

or ‘transactional’ reward for undertaking work in employment, on the one hand, and

intrinsic reward derived from work and employment, on the other hand. The mix of

extrinsic and intrinsic rewards provided by the employer is termed the reward system ,

the monetary or economic element of the reward system is termed the pay system.

Extrinsic reward , in the form of salary, incentive pay and benefits , serves the

purpose of directly recognizing the comparative value of organizational roles and the

contribution individuals may make in performing them. Extrinsic employee benefits

and perks delivered in a non-cash form (eg. company cars, paid holiday and health

care), or deferred remuneration (eg predefined occupational pension benefits or equity

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share-based rewards that may be financially realized at a future date), may reflect

managerial efforts to keep rewards competitive, intended to recruit and retain

sufficient employees of the right caliber, and to secure work accomplishment for the

organization. Benefits may also reflect an employer’s interest in employee wellbeing.

The nature and combination of extrinsic reward is dynamic: for example, present-day

contributions to an employee’s ‘portable’ retirement income fund may be offered in

place of a company pension, reflecting the increasingly flexible employment

relationship.

Intrinsic reward may be further subdivided (Kessler, 2001). On the one hand,

environmental rewards may be manifested in the physical surroundings in which

work is performed, combined with other factors, such as the values displayed in the

workplace by organizational leaders and work supervisors, and perceptions of their

leadership quality. On the other hand, development-oriented rewards that tend to be

more individually directed may be offered to recognize employee aspirations to

receive learning and development opportunities, and to gain acknowledgement of

outstanding work and build feelings of accomplishment, wherever possible

consolidated tangibly through career advancement (Milkovich and Newman, 2004). It

is agued that extending the features of employee reward beyond those specified in the

‘economic contract’ may help to secure employees’ discretionary effort (Wright,

2005: 1.2.2). This ‘intrinsic’ or ‘psychological’ contract in work relationships

(Levinson et al, 1962; Schein, 1965; Rousseau, 1989, 1995) features in commentary

advocating attention to the ‘total reward’ proposition .

Reward systems have three main objectives: to attract new employees to the

organisation, to elicit good work performance, and to maintain commitment to the

organization . In nutshell any organizational reward system has three behavioural

objectives :-

1. Membership behavior to recruit and retain a sufficient number of qualified

workers.

2. Task behavior to motivate employees to perform to the fullest extent of their

capabilities .

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3. Compliance behavior to encourage employees to follow workplace rules and

undertake special behaviors beneficial to the organizations without direct

supervision or instructions.

Reward system is an important ingredient in managing innovation in a company. It is

essential for the firm’s success to reward innovators for their contributions, to reward

people who collaborate as well as individual performers. Rewards can be given in

many different forms and different features of the reward system can stimulate

different aspects of innovation within a firm. Reward system design can help to

modify the organization’s culture. It is a mechanism that can be used by managers to

communicate desired behaviors to organizational members.

According to La Belle (2005), different individuals have different perceptions of

rewards. For instance, some individuals may consider cash as a sufficient and

adequate reward for their efforts at work, while others may consider holidays and

material incentives (such as a car) as more rewarding in exchange for their work. For

instance, some employees consider being recognized by their leader as more

rewarding than financial incentives.

Rewards and compensation systems motivate employees to give their maximum

efforts towards assigned work . Total compensation includes direct pay like base, cost

of living, short-term and long-term incentives and indirect pay as benefits like

allowances and income protection. Numerous reward systems operate within

organizations are often used as a key management tool that can contribute to a firm’s

effectiveness by influencing individual and group behaviour (Lawler and Cohen,

1992). The structure and allocation of reward may affect the motivation of individual

team members (Hackman, 1990).

Robert (2005) defined reward management as: “the process of developing and

implementing strategies, policies and systems which help the organization to achieve

its objectives by obtaining and keeping the people it needs, and by increasing their

motivation and commitment.” Compensation includes basic pay for the job and other

benefits which go with it. Compensation, as a part of the compensation-cum-reward

(CCR) system, is generally split into two components: fixed and variable. Fixed

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component of compensation is the pay or salary paid, considering the market rate,

and the competence of the employee. Compensation amount may be decided on the

basis of the market rate and job evaluation. Market rates can be obtained from

published surveys, special surveys undertaken, or information from professional

bodies.

Kreitner et al. (1999:250) say these rewards can vary from subsidized lunches

to stock options, from boxes of chocolates to golf club membership. The most basic

form of rewards is pay and benefits, but there are less obvious social and psychic

rewards. Social rewards can include a simple praise and recognition from others

both inside and outside the organization. Psychic rewards are more from the inside,

and include personal feelings of self-esteem, self-satisfaction, and accomplishment.

Despite the fact that reward systems vary widely, it is possible

to identify and interrelate some common components.

Direct pay is what an employee receives in their bank account: base salary, overtime,

commission, merit pay, paid leave, bonuses, company profit-sharing. Indirect pay,

often called “benefits”, refers to that part of the total reward package in addition to

direct pay, such as: health & life insurance cover, retirement & pension plans,

company car, health care, health club memberships, mobile phone, subsidized meals,

subsidized entertainment (movies, opera, museums, etc). Common wisdom suggests

that benefits attract, retain, and motivate employees, but there is little research to

support this. Reward practices are dictated by perceptions of power between labour

and management. Pay systems will change according to their effectiveness in the

effort-wage relationship with the balance of power.

1.2 NATURE OF REWARD SYSTEM

Reward Systems are a critical part of any organization's design. How well they fit

with the rest of the systems in an organization has an important impact on how

effective the organization is and on the quality of life that people experience in the

organization. Three critical elements of the reward systems are :

1. Core principles which the organization holds which may be stated or simply

implicit in the way the organization operates. But, they are part of any

organization and its reward system.

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2. The reward system also is shown to be made up of process features and

structural feature. Process design features include such things as

communication policies , and decision making practices. These are critical,

because they reflect not only the overall management style of the organization,

but influence how well reward system practices will be accepted, understood,

and how much commitment there will be to them.

3. Finally, reward systems include actual reward system practices and structures.

These are the features of reward systems that get the most attention. They

include pay delivery systems such as gain sharing plans, profit-sharing plans

as well as administrative polices and a host of other specific organizational

programs.

Reward systems are assumed to be effective to the degree that the core principles,

processes and practices are in alignment. The fit here is critical because organizations

need to be consistent in what they say and what they do. Violations of this consistency

inevitability leads to misunderstanding about how the reward system works, and

failure to motivate the proper or needed behavior.

1.3 COMPONENTS OF REWARD SYSTEM

There are five elements of total rewards, each of which includes programs, practices,

elements and dimensions that collectively define an organization's strategy to attract,

motivate and retain employees. These elements are:

1.3(a) Compensation - Compensation is payment to an employee in return for their

contribution to the organization, that is, for doing their job. The most common forms

of compensation are wages, salaries and tips. Compensation is usually provided as

base pay and/or variable pay. Base pay is based on the role in the organization and the

market for the expertise required to conduct that role. Variable pay is based on the

performance of the person in that role. Organizations usually associate compensation

and pay ranges with job descriptions in the organization. The ranges include the

minimum and the maximum amount of money that can be earned per year in that role.

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1.3(b) Benefits - Benefits are forms of value, other than payment, that are provided to

the employee in return for their contribution to the organization, that is, for doing their

job . Benefits can be tangible as well as intangible where Intangible benefits are less

direct as compared to tangible benefits. Prominent examples of tangible benefits are

insurance, vacation pay, holiday pay, and maternity leave, contribution to retirement

(pension pay), profit sharing, stock options, and bonuses. Intangible benefits are

appreciation from a boss, likelihood for promotion, nice office, etc.

1.3(c) Recognition - According to Satisfaction Compensation Programs for

Growing Companies (1997) recognition and celebration of achievement can build on

job satisfaction felt by team members. It is mentioned that there are various ways to

recognize successful performance.

The following ways to recognize successful performance are:

• Always stop to commend accomplishments ;

• Deliver praise and rewards publicly;

• Deliver recognition in a personal and honest manner;

• Ask the employees for their reward preference;

• Reward timeously, and

• Strive for a clear, well communicated reward system .

1.3(d) Career Opportunities - Career planning is seen as a very systematic and

comprehensive process of targeting career development and implementation of

strategies, self assessment and analysis of opportunities and evaluate the results.

According to Edgar Schein career planning (Manolescu, 2003) is a continuous process

of discovery in which an individual slow develops his own occupational concept as a

result of skills or abilities, needs, motivations and aspirations of his own value system

. The career planning process involves both the organization and the individual

responsibility. Therefore, career planning (Popescu Neveanu, 2003) must link

individual needs and aspirations with organizational needs and opportunities,

evaluating, advising and informing its staff on career planning, individual

development efforts with training and development programs.

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A career planning model, taken from the literature is presented in the following

figure:

A Career Planning Process

Figure – 1.1

1.3(e) Empowerment - is the process of increasing the capacity of individuals or

groups to make choices and to transform those choices into desired actions and

outcomes. It is the process of enabling an employee to think, behave, act, react and

control their work in more autonomous ways, as to be in control of one’s own destiny.

Effective employee empowerment not only has positive implications for employee

satisfaction, but also many other organizational facets, such as member service and

member retention. Empowering employees leads to organizational encouragement of

entrepreneurial traits and prompts employees to make decisions, take action, and

foster their belief that they can take control of their own destinies.

A Career Planning Process

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The elements represent the "tool kit" from which an organization chooses to offer and

align a value proposition that creates value for both the organization and the

employee. An effective total rewards strategy results in satisfied, engaged and

productive employees, who in turn create desired business performance and results.

1.4 CHALLENGES INHERENT IN REWARD SYSTEM

Rewards in whatever form have been an integral part of the job environment. Indeed,

the importance of workplace reward and recognition systems cannot be overlooked as

they serve to acknowledge and motivate employees (Gallup 2008). People do respond

well to incentives for good performance and to recognition for doing especially good

work. According to Ajila and Abiola (2004) good remuneration has been found over

the years to be one of the policies the organization can adopt to increase their workers

performance and thereby increase the organization’s productivity

Management of rewards of employees in any organization is vital not only for the

growth of the organization but also for the growth of individual employee (Ajila and

Abiola 2004). An organization must know who are its outstanding workers, those who

need additional training and those not contributing to the efficiency and welfare of the

company or organization. Also, reward needs to be carefully managed at all levels of

the employment such as from junior to senior levels, across departments and within

the same departments lest it creates conflicts. Hence, the overall purpose of reward

management should help prevent intra-employee conflicts, hire the right mix of

people and motivate workers..

Pay practices vary significantly across employing units and to some degree, across

jobs. However the most technically sophisticated payment plan can generate desired

employee reactions or exactly the opposite. The actual effect depends on whether the

rationale for the payment plan is understood and accepted and whether employees'

perceptions of the facts upon which the rationale is built (e.g., the company's financial

health, the pay of employees in other jobs or organizations) are the same as the

perceptions of those charged with seeing that the payment plan has the intended

effects.

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According to Adams (1979) social relationships involve an exchange process where a

person may expect equity in comparison with others . Also a person’s feeling about

the equity of the exchange is affected by the treatment they receive when compared

with what happens to other people. When there is an unequal comparison of ratios, the

person experiences a sense of inequity. Adams posits that a feeling of inequity causes

tension which in turn causes the person to decrease the amount of quality work or

working additional hours without pay. He concluded that once such a scenario plays

out, a person may try to find a new situation with a more favorable balance by

resigning from a job or from the organization altogether. Or the person may attempt to

bring about changes in others to lower their output or may force others to leave the

field.

However, there is increasing recognition that individual pay programs may also have

an effect on the nature and composition of an organization's work force (Milkovich &

Wigdor, 1991; Gerhart & Milkovich, 1992).Also it has been found that different pay

systems attract different people depending on their personality traits and values

(Bretz, Ash, & Dreher, 1989; Judge & Bretz, 1992).

1.5 EFFECTS OF REWARD SYSTEM : POSITIVE & NEGATIVE

Reward Systems are a critical part of any organization's design. How well they fit

with the rest of the systems in an organization has an important impact on how

effective the organization is and on the quality of life that people experience in the

organization. According to Adam(2010) , rewards plays important role in

organizations. According to Beard ( 2001) , where basic pay is given to employee

based on the employee’s skill levels and on the experience , it will improve the

employee productivity. However , Inadequate basic pay as a monetary reward also

give a great impact to the employee performance such as lateness , absenteeism , low

performance, feeling of grievances and others which can bring a major problem to

the organization.( Omolayo, 2007 ; Owolabi , 2007)

Employees are not the only ones who experience the positive effects of reward

systems in the workplace. Employers who offer desirable rewards to their employees

have a better chance of attracting good, motivated workers. They also have better

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chances at retaining their top employees, those who more than likely reap the rewards.

Ambitious employees will be attracted to reward systems, but without rewards, may

look for work elsewhere. Not all reward system effects are positive. Some scholars

argue that an overemphasis on business reward systems has a negative effect on

intrinsic values.

Reward systems are assumed to be effective to the degree that the core principles,

processes and practices are in alignment. The fit is critical because organizations need to

be consistent in what they say and what they do. Violations of this consistency

inevitability leads to misunderstanding about how the reward system works, and failure to

motivate the proper or needed behavior. Process issues come up frequently because

organizations are constantly having to make reward system management, implementation

and communication decisions.

1.6 DIFFERENT TERMS ASSOCIATED WITH REWARD SYSTEM

• Motivation :-“Motivation is the desire to achieve beyond expectations,

being driven by internal rather than external factors, and to be involved in

a continuous striving for improvement”. (Torrington, Hall, Taylor &

Atkinson, 2009, p. 276).

• “Reward is the benefits that arise from performing a task, rendering a

service or discharging a responsibility.” (Colin Pitts, 1995, p. 11.) Pay is

the most significant and motivating benefit that is received in return for

performing a task or service. It is pay that motivates individuals to go out

and seek work. Pay is also one of the few ways to set a mutually

acceptable common value to the individual’s work contribution. Pay can

also be a powerful demotivator, if employees are not satisfied with the

reward package, it will be hard for the company to recruit and retain good

individuals. (Colin Pitts, 1995, p. 11).

• Expectancy theory : It believe that employees will change their behavior

by working harder or prioritizing their actions if they know that by doing

so they will be rewarded with something of value to them. Hence,

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incentives are a great way to reward effort and behaviors which the

organization wishes to encourage. If the incentive is paid in return for

behavior that contributes to the organizations goals, it will in the long run

enhance organizational effectiveness and productivity and hence generates

a positive outcome for both employer and employee. (Torrington, Hall,

Taylor & Atkinson, 2009, p. 162).

• Total reward : It describes a reward strategy that brings components such

as learning and development together with aspects of the work

environment, into the benefits package. The components of the total

rearward can be described as in the following figure.

Total Reward System

Figure : 1.2

• Types of incentives

A . Payment by Result is historically the most widely used incentive scheme, it

reward employees according to the number of items or units they produce or the

time they take to produce them.

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B. Skills-based pay is an input-based payment system in which employees

receive pay or the skills or competencies which they acquire. This system

gives the employees an opportunity to influence their pay by acquiring

more skills that lead to pay increases. Skills-based pay encourages

multitasking and flexibility, which in turn enables the organization to

respond faster and more effectively to the needs of customers. (Torrington,

Hall, Taylor & Atkinson 2009, p163-164).

C. Profit sharing is an incentive based compensation program where

employees are rewarded with company shares or a percentage of the

company's profit. This scheme is claimed to increase employee's

commitment to his or her company by linking pay to profit, and hence

deepening the level of mutual interest. Profit sharing also encourages the

thought of everyone being on the same team; the employees have the same

goals and are rewarded equivalently.

D. Performance-related pay works on the assumption that if an employee is

offered monetary bonuses for a job well done, they will perform better.

There are two distinct varieties of this scheme. The merit-based system is

based on the assessment of an employee's performance against previously

set objectives.

E. “Recognition is the demonstration of appreciation for a level of

performance, an achievement or a contribution to an objective. It can be

confidential or public, causal or formal. It is always in addition to pay.”

(Colin Pitts 1995, p 14.)

There are six types of recognition.

1. Verbal and Written Recognition is for examples expressions of praise or a

personal thank-you note. This type of recognition costs nothing and it makes

people feel good.

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2. Work-Related Recognition can be educational and training opportunities, a

special project assignment, lateral or vertical career opportunities or special

office and work equipment.

3. Social Recognition. Examples of this are pizza parties, dinners and articles in

newsletters.

4. Financial Recognition such as; cash, stock options and stock grants.

5. Symbolic Recognition include T-shirts, coffee mugs, sculptures, jackets and

plaques. The importance does not lie on the monetary worth but on what the

recognition symbolizes.

6. Tangible Recognition consist of gift certificates, trips, meal tickets,

merchandise and tickets to entertainment events.

Incentive Plans

Figure 1.3

• Career is a sequence of related work experience and activities, directed at

personal and organizational goals, through which a person passes during his or her

lifetime; they are partly under his control and partly under the control of others

(Hall, 1986, 1990). This definition is all encompassing as it explains that work is

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not just an activity, but also a channel through which a person gains experience

for both personal and professional growth. This continues throughout the

individual’s lifetime and the responsibility for this kind of growth is both with the

individual and with the organization..

� Career Planning : As career need to be planned and

developed, career planning is defined as a deliberate

attempt by an individual to become more aware of his or

her own skills, interests, values, opportunities, choices and

consequences. It involves identifying career-related goals

and establishing plans for achieving those goals (Hall,

1986).

� Career Management : It is considered to be an

organizational process that implements and monitors career

plans undertaken by individuals alone or within the

organization’s career systems (Hall, 1986). Broadly, career

management can be viewed as the overall process by which

employees develop awareness about individual strengths

and organizational opportunities, set realistic career goals,

and implement career strategies that facilitate the

achievement of their career goals (Greenhaus and Callanan,

1994).

� Individual Career Management : This refers to the

personal efforts made by individuals to advance their own

career goals which may or may not coincide with those of

their organizations have for them (Hall, 1986). It involves

behaviours that are related to improvement in one’s current

job as well as behaviours related to movement within or

outside the company (Kossek, Roberts, Fisher and Demarr,

1988; Sturges et al., 2002). It involves both self analyses of

talents, capabilities and career ambitions as well as concrete

actions (e.g. networking, self-nomination, creating

opportunities) undertaken to realize these ambitions (Noe,

1996; Sturges et al., 2000; 2002).

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� Career Strategies : According to Gould and Penley (1984)

Career Strategies are “behaviours, which may be utilized by

an individual to decrease the time required for and

uncertainty surrounding the attainment of important career

objectives”.

� Career Satisfaction : It refers to a pleasurable affective

condition resulting from one’s appraisal of one’s career

(London and Stumpf, 1982). Hall (1987) defined a career as

an evolving sequence of a fairly random set of experiences

overtime. Career success therefore encompasses subjective

and objective aspects of achievement and progress of an

individual through an organization or occupation (Arthur et

al., 1989). Subjective or intrinsic career success is the

individual’s subjective judgments about their career

attainments (Baruch, 2004; Burke, 2001; Judge et al., 1995;

Ng et al., 2005). The subjective dimension becomes more

important as people are required to take greater personal

responsibility for career development (Hall, 1996).

• Compensation is the process of directly and indirectly rewarding employees

on a current or deferred basis, for their performance of assigned tasks.

Internal, External and Individual equity for employees : While developing the

compensation package the HR Manager will normally do so in consultation with

the line manager. Hence the chances are that some may be asked to pay a better

compensation than the other employee is paid though the role of both the

employees are same. In such a situation the HR Manager should try to evaluate

the job and give a logical reasoning to make sure that there is parity in pay.

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COMPENSATION

DIRECT INDIRECT

Base Pay

� Wages

� Salaries

Variable Pay

� Bonuses

� Incentives

� Stock Options

Benefits

� Medical Insurance

� Paid time off

� Retirement Pensions

� Worker’s Compensation

Compensation

Figure 1.4

COMPONENTS OF COMPENSATION

• Job Analysis - Job analysis is a systematic approach to defining the job role,

description, requirements, responsibilities, evaluation, etc. It helps in finding

out required level of education, skills, knowledge, training, etc for the job

position. It also depicts the job worth i.e. measurable effectiveness of the job

and contribution of job to the organization.

Job Analysis

Figure 1.5

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• Pay Structures - Pay structure refers to the process of setting up the pay for a

job in an organization. The process deals with internal and external analysis to

estimate the compensation package for a job profile. Internal equity, External

equity and Individual equity are the most popular pay structures. Job

description provides the in depth knowledge about the job profile and its

worth. Pay structures are the strong determinant of employee’s value in the

organization. It helps in analyzing the employee’s role and status in the

organization. It provides for fair treatment to all employees. Pay structures

also include the estimation of incentives. The level of incentives also depends

on the level of job position in the organizational hierarchy.

• Internal Equity – The internal equity method undertakes the job position in

the organizational hierarchy. The process aims at balancing the compensation

provided to a job profile in comparison to the compensation provided to its

senior and junior level in the hierarchy. The fairness is ensured using job

ranking, job classification, level of management, level of status and factor

comparison.

Internal Equity

Figure 1.6

• External Equity - Here the market pricing analysis is done. Organizations

formulate their compensation strategies by assessing the competitors’ or

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industry standards. Organizations set the compensation packages of their

employees aligned with the prevailing compensation packages in the market.

This entails for fair treatment to the employees. At times organizations offer

higher compensation packages to attract and retain the best talent in their

organizations.

External Equity

Figure 1.7

• Salary Surveys - Organizations have to bridge the gap between the industry

standards and their salary packages. They cannot provide compensation

packages that are either less than the industry standards or are very higher than

the market rates. For the purpose they undertake the salary survey. The Salary

survey is the research done to analyze the industry standards to set up the

compensation strategy for the organization. Organizations can either conduct

the survey themselves or they can purchase the survey reports from a reputed

research organization.

TYPES OF COMPENSATION

• Direct Compensation -Direct compensation refers to monetary benefits

offered and provided to employees in return of the services they provide to the

organization. The monetary benefits include basic salary, house rent

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allowance, conveyance, leave travel allowance, medical reimbursements,

special allowances, bonus, PF/Gratuity, etc. They are given at a regular

interval at a definite time.

• Basic Salary -Salary is the amount received by the employee in lieu of the

work done by him/her for a certain period say a day, a week, a month, etc. It is

the money an employee receives from his/her employer by rendering his/her

services.

• House Rent Allowance - Organizations either provide accommodations to its

employees who are from different state or country or they provide house rent

allowances to its employees. This is done to provide them social security and

motivate them to work.

• Conveyance - Organizations provide for cab facilities to their employees.

Few organizations also provide vehicles and petrol allowances to their

employees to motivate them.

• Leave Travel Allowance -These allowances are provided to retain the best

talent in the organization. The employees are given allowances to visit any

place they wish with their families. The allowances are scaled as per the

position of employee in the organization.

• Medical Reimbursement - Organizations also look after the health conditions

of their employees. The employees are provided with medi-claims for them

and their family members. These medi-claims include health-insurances and

treatment bills reimbursements.

• Bonus -Bonus is paid to the employees during festive seasons to motivate

them and provide them the social security. The bonus amount usually amounts

to one month’s salary of the employee.

• Special Allowance - Special allowance such as overtime, mobile allowances,

meals, commissions, travel expenses, reduced interest loans; insurance, club

memberships, etc are provided to employees to provide them social security

and motivate them which improve the organizational productivity.

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• Indirect Compensation --Indirect compensation refers to non-monetary

benefits offered and provided to employees in lieu of the services provided by

them to the organization. They include Leave Policy, Overtime Policy, Car

policy, Hospitalization, Insurance, Leave travel Assistance Limits, Retirement

Benefits, Holiday Homes.

• Leave Policy-It is the right of employee to get adequate number of leave

while working with the organization. The organizations provide for paid

leaves such as, casual leaves, medical leaves (sick leave), and maternity

leaves, statutory pay, etc.

• Overtime Policy-Employees are provided with the adequate allowances and

facilities during their overtime, if they happened to do so, such as transport

facilities, overtime pay, etc.

• Hospitalization-The employees are provided allowances to get their regular

check-ups, say at an interval of one year. Even their dependents should be

eligible for the medi-claims that provide them emotional and social security.

• Insurance- Organizations also provide for accidental insurance and life

insurance for employees. This gives them the emotional security and they feel

themselves valued in the organization.

• Leave Travel -The employees are provided with leaves and travel allowances

to go for holiday with their families. Some organizations arrange for a tour for

the employees of the organization. This is usually done to make the employees

stress free.

• Retirement Benefits-Organizations provide for pension plans and other

benefits for their employees which benefits them after they retire from the

organization at the prescribed age.

• Holiday Homes-Organizations provide for holiday homes and guest house for

their employees at different locations. These holiday homes are usually

located in hill station and other most wanted holiday spots. The organizations

make sure that the employees do not face any kind of difficulties during their

stay in the guest house.

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• Flexible Timings-Organizations provide for flexible timings to the employees

who cannot come to work during normal shifts due to their personal problems

and valid reasons.

1.7 PERFORMANCE MANAGEMENT

The success of any company can be determined by how well they are able to utilize

and mobilize their resources to give them the best results. Unlike other resources,

human resources have emotions and needs. It is therefore imperative that

management recognizes these emotions and needs when developing their human

resource management systems. Effective development of these systems can provide

a competitive human resource advantage .

According to Carrell et al. (1995:348) performance management is a term that was

developed when the emphasis of performance appraisal was broadened to include all

of the management tools. Performance appraisal is there to ensure achievement of

performance goals. The tools to be used to improve performance should

include reward systems, job design, leadership, training and performance

appraisal.

Doyle’s model illustrates clearly the close relationship between motivation,

performance, and reward.

Performance management is about managing the organization. It should be a

natural process where everyone concerned with the business should be involved.

It should be managed taking the organization’s internal and external environment

into consideration. Managers as well as employees are responsible for the

results and therefore should agree beforehand what they need to do and how they

need to do it. According to Armstrong (1999:433) performance management

processes should be part of a holistic approach to managing performance that is the

concern of everyone in the organization. It takes a view of all aspects of

performance and how they play a role in the desired outcomes at organizational,

departmental, team and individual levels, and what needs to be done to improve

24

these outcomes. Armstrong (1999:434) says performance management is therefore

concerned with people’s work, with their behavior and with their results. It also

includes how performance is measured to increase corporate, team and

individual effectiveness and the continuous development of knowledge, skill and

competence. It is important when designing and operating a performance

management system to take into consideration the interrelationships of each

process. According to Armstrong (1999:430) performance management is

concerned with the broader issues facing the business and it is integrated in four

senses:

• Vertical integration - linking or aligning business, team and individual

objectives;

• Functional integration - linking functional strategies in different parts of the

business;

• Human resources integration - linking different aspects of human

resource management, especially organizational development, human

resource development and reward, to achieve a coherent approach to the

management and development of people, and

• Integration of individual needs - with those of the organization, as far as this

is possible.

Bruce and Pepitone (1999:40) says management needs to help their employees feel

more motivated on the job and build the connection between their own interests

and the interests of the organization by following these eight steps:

• Help employees stretch;

• Set clear standards;

• Define the scope of responsibility for employees;

• Help employees buy into higher performance standards;

• Document what employees agree on;

• Decide on a course of action;

• Observe and follow up, and

• Be clear about rewards.

25

According to Armstrong (1999:431) the principles of performance management can

be summarized as follows:

• Corporate goals are divided into individual, team, department and

divisional goals.

• It clarifies corporate goals.

• It is a continuous process where performance improves over time.

• It is based on agreement rather than command or instruction.

• It encourages self-management of individual performance.

• It requires two-way communication between superiors and

subordinates.

• It requires continuous feedback.

• The feedback from subordinates enables superiors to modify

corporate objectives according to the experiences and knowledge gained

on the job.

• It measures performance against agreed goals.

• It is not primarily concerned with linking performance to financial

reward.

1.8 DIMENSIONS OF INDIVIDUAL PERFORMANCE

The seven factors influencing performance are described in detail

below:

• Goals – a real goal is when a manager’s desire and requirement is accepted by

the one who has to accomplish the goal and when the goal has been

translated into tasks that individuals have to perform;

• Standards – they will tell you when the goal was accomplished;

• Feedback – reports both the quality and quantity of progress toward reaching

the goal;

26

• Means – the resources and tools available to achieve the goal, because

the lack of resources will influence whether the goal will be achieved;

• Competence – the person must have the competence to perform the tasks;

• Motive – what motivates employees and how management facilitates

performance motivation, and

• Opportunity – time and legibility.

Armstrong (1999:439) describes performance management as a continuous self-

renewing cycle and the main activities of the cycle as follows:

• Role definition, where the competencies required and the result areas and

targets to be achieved are agreed between manager and employee.

• The performance agreement or contract, which defines what the individual has

to achieve, and how performance will be measured and the competencies required

to deliver the results.

• The personal development plan, which sets out the actions people are intended

to take to develop them in order to extend their knowledge and skills,

increase their levels of competence and to improve their performance in

specified areas.

• Managing performance throughout the year, which means implementing the

performance agreement, which includes a continuous process of providing

feedback on performance, conducting performance reviews, updating objectives,

dealing with performance problems and counselling.

• Performance review, which is the review of a performance over time,

covering achievements, progress and problems, and revising the performance

agreement.

According to Armstrong (1999:440) people will always perform admirably and

exceed expected performances when they are motivated. Motivation is very

closely linked to people’s needs and the satisfaction in their jobs. It is therefore

important to understand what motivates people and makes them perform better than

expected.

27

1.9 DIFFERENT TERMS ASSOCIATED WITH PERFORMANCE

• “Motivation is a set of process concerned with a kid of force that energizes

behavior and directs it towards achieving some specific goals. Many writers

have expressed motivation is goal directed behavior. This objective nature of

motivation is also suggested by kreitner and Kinicki (2001, p. 162) put

forward that motivation represents “those psychological processes that cause

the stimulation, persistence of voluntary actions that are goal directed”.

• Job satisfaction is also defined as reintegration of affect produced by

individual’s perception of fulfillment of his needs in relation to his work and

the surrounding it (Saiyaden,1993). In examining in outcomes of job

satisfaction, it is important to breakdown the analysis into a series of specific

set of variables. They are productivity, turnover, absenteeism and other effects

(accidents, grievances, physical and mental health). Job satisfaction is an

attitude, which Porter, Steers, Mowday and Boulian (1974) state is a more

"rapidly formed" and a "transitory" work attitude "largely associated with

specific and tangible aspects of the work environment". There are different

perspectives on job satisfaction and two major classifications of job

satisfaction (Naumann, 1993) are content (Herzberg, 1968; Maslow, 1987;

Alderfer, 1972) and process theories (Adams, 1965; Vroom, 1964; Locke,

1976; Hackman & Oldham, 1975). Responsibility, achievement, autonomy,

personal growth, challenge, complete work

• Feedback is the opinion expressed showing insight to the level of activity

conducted . It can have a positive or a negative side review .

• Performance is defined as a function of individual ability and skill and effort

in a given situation (Porter and Lawler, 1974).

• Effort is an internal force of a person which makes him or her to work

willingly when employees are satisfied with their job and their needs are met,

they develop an attachment to work or we say that they make and effort to

perform better. Increased effort results in better performances.

28

1.10 HISTORICAL FRAMEWORK OF BANKS

Banks have played a critical role in the economic development of some developed

countries such as Japan and Germany and most of the emerging economies including

India. Banks today are important not just from the point of view of economic growth,

but also financial stability. In emerging economies, banks are special for three

important reasons. First, they take a leading role in developing other financial

intermediaries and markets. Second, due to the absence of well-developed equity and

bond markets, the corporate sector depends heavily on banks to meet its financing

needs. Finally, in emerging markets such as India, banks cater to the needs of a vast

number of savers from the household sector, who prefer assured income and liquidity

and safety of funds, because of their inadequate capacity to manage financial risks.

Forms of banking have changed over the years and evolved with the needs of the

economy. The transformation of the banking system has been brought about by

deregulation, technological innovation and globalization.

In India, the definition of the business of banking has been given in the Banking

Regulation Act, (BR Act), 1949. According to Section 5(c) of the BR Act, 'a banking

company is a company which transacts the business of banking in India.' This

definition points to the three primary activities of a commercial bank which

distinguish it from the other financial institutions. These are: (i) maintaining deposit

accounts including current accounts, (ii) issue and pay cheques , and (iii) collect

cheques for the bank's customers.

The commercial banking industry in India started in 1786 with the establishment of

the Bank of Bengal in Calcutta. The Indian Government at the time established three

Presidency banks, viz., the Bank of Bengal (established in 1809), the Bank of

Bombay (established in 1840) and the Bank of Madras (established in 1843). In 1921,

the three Presidency banks were amalgamated to form the Imperial Bank of India,

which took up the role of a commercial bank, a bankers' bank and a banker to the

Government. The Imperial Bank of India was established with mainly European

shareholders. It was only with the establishment of Reserve Bank of India (RBI) as

29

the central bank of the country in 1935, that the quasi-central banking role of the

Imperial Bank of India came to an end.

In 1860, the concept of limited liability was introduced in Indian banking, resulting in

the establishment of joint-stock banks. In 1865, the Allahabad Bank was established

with purely Indian shareholders. Punjab National Bank came into being in 1895.

Between 1906 and 1913, other banks like Bank of India, Central Bank of India, Bank

of Baroda, Canara Bank, Indian Bank, and Bank of Mysore were set up.

After independence, the Government of India started taking steps to encourage the

spread of banking in India. In order to serve the economy in general and the rural

sector in particular, the All India Rural Credit Survey Committee recommended the

creation of a state-partnered and state-sponsored bank taking over the Imperial Bank

of India and integrating with it, the former state-owned and state-associate banks.

Accordingly, State Bank of India (SBI) was constituted in 1955. Subsequently in

1959, the State Bank of India (subsidiary bank) Act was passed, enabling the SBI to

take over eight former state-associate banks as its subsidiaries.

To better align the banking system to the needs of planning and economic policy, it

was considered necessary to have social control over banks. In 1969, 14 of the major

private sector banks were nationalized. This was an important milestone in the history

of Indian banking. This was followed by the nationalization of another six private

banks in 1980. With the nationalization of these banks, the major segment of the

banking sector came under the control of the Government. The nationalization of

banks imparted major impetus to branch expansion in un-banked rural and semi-urban

areas, which in turn resulted in huge deposit mobilization, thereby giving boost to the

overall savings rate of the economy. It also resulted in scaling up of lending to

agriculture and its allied sectors. However, this arrangement also saw some

weaknesses like reduced bank profitability, weak capital bases, and banks getting

burdened with large non-performing assets.

To create a strong and competitive banking system, a number of reform measures

were initiated in early 1990s. The thrust of the reforms was on increasing operational

efficiency, strengthening supervision over banks, creating competitive conditions and

developing technological and institutional infrastructure. These measures led to the

improvement in the financial health, soundness and efficiency of the banking system.

30

One important feature of the reforms of the 1990s was that the entry of new private

sector banks was permitted. Following this decision, new banks such as ICICI

Bank, HDFC Bank, IDBI Bank and UTI Bank were set up.

Commercial banks in India have traditionally focused on meeting the short-term

financial needs of industry, trade and agriculture. However, given the increasing

sophistication and diversification of the Indian economy, the range of services

extended by commercial banks has increased significantly, leading to an overlap with

the functions performed by other financial institutions. Further, the share of long-term

financing (in total bank financing) to meet capital goods and project-financing needs

of industry has also increased over the years.

Banking sector has been playing an important role in transforming India from an

agrarian economy to a major service sector ever since liberalization and globalization

began. Increased deregulation of the sector has resulted in rising competition and

entry of private sector and foreign banks. With the increasing consolidation of banks,

the greatest human resource issue facing this industry has been the basic lack of

confidence in employees that they are working for the right organization. This has

resulted in low job satisfaction among employees. Moreover, with the entry of private

sector banks, a more customer-centric approach had to be adopted by the employees

to sell new banking products. The public sector bank employees were not prepared for

these changes as they considered their jobs to be well secure. At the same time, the

private bank employees worked towards profitability with rigor. In line with the social

objectives, public sector banks continued their support to welfare policies for their

employees to improve their morale. On the other hand, in the private sector, job

security has been less and performance has become the criterion for career growth.

So, there was no even growth with the banking industry.

With the changing environment, both the sectors in the banking industry identified

that they were facing shortage of personnel to handle their growing demands of the

market. Finally, the HR issues in the banking industry can be summed up as follows:

31

• A sense of job insecurity in the existing experienced employees due to lateral

entry of specialists.

• Demand for higher salary by the new recruits.

• Expectations of faster career growth from the employees.

• Aligning the HR strategies with the business strategies of the bank.

• Conflict in selecting promotion criteria due to the skewed age profile of

employees .

• Low productivity among the public sector bank employees.

1.11 STRUCTURE OF BANKS

• Banking Regulator

The Reserve Bank of India (RBI) is the central banking and monetary authority of

India, and also acts as the regulator and supervisor of commercial banks.

• Scheduled Banks in India

Scheduled banks comprise scheduled commercial banks and scheduled co-operative

banks. Scheduled commercial banks form the bedrock of the Indian financial system,

currently accounting for more than three-fourths of all financial institutions' assets.

SCBs are present throughout India, and their branches, having grown more than four-

fold in the last 40 years now number more than 80,500 across the country . A pictorial

representation of the structure of SCBs in India is given in figure 1.8.

32

Structure of Indian Banks

Fig. 1.8

• Public Sector Banks

Public sector banks are those in which the majority stake is held by the Government

of India (GoI). Public sector banks together make up the largest category in the Indian

banking system. There are currently 29 public sector banks in India. They include the

SBI and its 6 associate banks (such as State Bank of Indore, State Bank of Bikaner

and Jaipur etc), 21 nationalised banks (such as Allahabad Bank, Canara Bank etc) and

IDBI Bank Ltd.

• Regional Rural Banks

Regional Rural Banks (RRBs) were established during 1976-1987 with a view to

develop the rural economy. Each RRB is owned jointly by the Central Government,

concerned State Government and a sponsoring public sector commercial bank. RRBs

provide credit to small farmers, artisans, small entrepreneurs and agricultural laborers

. Over the years, the Government has introduced a number of measures of improve

viability and profitability of RRBs, one of them being the amalgamation of the RRBs

33

of the same sponsored bank within a State. This process of consolidation has resulted

in a steep decline in the total number of RRBs to 86 as on March 31, 2009, as

compared to 196 at the end of March 2005. There are currently 80 Regional Rural

Banks in India ( as on January 2014 ).

• Private Sector Banks

In this type of banks, the majority of share capital is held by private individuals and

corporate. Not all private sector banks were nationalized in 1969, and 1980. The

private banks which were not nationalized are collectively known as the old private

sector banks and include banks such as The Jammu and Kashmir Bank Ltd., Lord

Krishna Bank Ltd etc. Entry of private sector banks was however prohibited during

the post-nationalization period. In July 1993, as part of the banking reform process

and as a measure to induce competition in the banking sector, RBI permitted the

private sector to enter into the banking system. This resulted in the creation of a new

set of private sector banks, which are collectively known as the new private sector

banks. As at end March, 2009 there were 7 new private sector banks and 15 old

private sector banks operating in India. There are presently 17 old private sector banks

operating in India and 11 new private sectors Banks in India.

• Foreign Banks

Foreign banks have their registered and head offices in a foreign country but operate

their branches in India. The RBI permits these banks to operate either through

branches; or through wholly-owned subsidiaries. The primary activity of most foreign

banks in India has been in the corporate segment. However, some of the larger foreign

banks have also made consumer financing a significant part of their portfolios. These

banks offer products such as automobile finance, home loans, credit cards, household

consumer finance etc. Foreign banks in India are required to adhere to all banking

regulations, including priority-sector lending norms as applicable to domestic banks.

In addition to the entry of the new private banks in the mid- 90s, the increased

34

presence of foreign banks in India has also contributed to boosting competition in the

banking sector.

• Co-operative Banks

Co-operative banks cater to the financing needs of agriculture, retail trade, small

industry and self-employed businessmen in urban, semi-urban and rural areas of

India. A distinctive feature of the co-operative credit structure in India is its

heterogeneity. The structure differs across urban and rural areas, across states and

loan maturities. Urban areas are served by urban cooperative banks (UCBs), whose

operations are either limited to one state or stretch across states. The rural co-

operative banks comprise State co-operative banks, district central cooperative banks,

SCARDBs and PCARDBs.9

1.12 PRIVATE SECTOR BANKS

Private banking in India was practiced since the beginning of banking system in

India. The first private bank in India to be set up in Private Sector Banks in India

was IndusInd Bank. It is one of the fastest growing Bank Private Sector Banks in

India. IDBI ranks the tength largest development bank in the world as Private

Banks in India and has promoted a world class institutions in India. The first

Private Bank in India to receive an in principle approval from the Reserve Bank of

India was Housing Development Finance Corporation Limited, to set up a bank in

the private sector banks in India as part of the RBI's liberalization of the Indian

Banking Industry. It was incorporated in August 1994 as HDFC Bank Limited

with registered office in Mumbai and commenced operations as Scheduled

Commercial Bank in January 1995.

ING Vysya, yet another Private Bank of India was incorporated in the year 1930.

Bangalore has a pride of place for having the first branch inception in the year

1934. With successive years of patronage and constantly setting new standards in

banking, ING Vysya Bank has many credits to its account.

35

• List of the old private-sector banks in India

S N Name of the Bank Year of establishment

1 Bank of Punjab 1943

2 Catholic Syrian Bank 1920

3 City Union Bank 1904

4 Dhanlaxmi Bank 1927

5 Federal Bank 1931

6 ING Vysya Bank 1930

7 Jammu and Kashmir Bank 1938

8 Karnataka Bank 1924

9 Karur Vysya Bank 1916

10 Lakshmi Vilas Bank 1926

11 Nainital Bank 1912

12 Ratnakar Bank 1943

13 SBI Commercial and international

Bank 1955

14 South Indian Bank 1905

15 Tamilnad Mercantile Bank Limited 1921

16 United Western Bank 1936

17 IDBI Bank Ltd. (reverse merged with

parent IDBI in 2004 to become IDBI

Ltd., now IDBI Bank Ltd.)

1964

List of the old private-sector banks in India

Figure. 1.9

36

• List of the new private-sector banks in India

S

No Name of the bank Year of establishment

1 Axis Bank (earlier UTI Bank) 1994

2 Bank of Punjab (actually an old

generation private bank since it was not

founded under post-1993 new bank

licensing regime)

1989

3 Centurion Bank Ltd. (Merged Bank of

Punjab in late 2005 to become Centurion

Bank of Punjab, acquired by HDFC Bank

Ltd. in 2008)

1994

4 Development Credit Bank (Converted

from Co-operative Bank, now DCB Bank

Ltd.)

1995

5 HDFC Bank 1994

6 ICICI Bank 1996

7 IndusInd Bank 1994

8 Kotak Mahindra Bank 1985

9 Yes Bank 2005

10 Times Bank (Merged with HDFC Bank

Ltd.)

11 Global Trust Bank (Merged with Oriental

Bank of Commerce)

List of the new private-sector banks in India

Fig. 1.10

37

1.13 CORPORATE PROFILE

AXIS BANK

Axis Bank was the first of the new private banks to have begun operations in

1994, after the Government of India allowed new private banks to be established.

The Bank was promoted jointly by the Administrator of the specified undertaking

of the Unit Trust of India (UTI - I), Life Insurance Corporation of India (LIC) and

General Insurance Corporation of India (GIC) and other four PSU insurance

companies, i.e. National Insurance Company Ltd., The New India Assurance

Company Ltd., The Oriental Insurance Company Ltd. and United India Insurance

Company Ltd.

Promoters

Axis Bank Ltd. has been promoted by the largest and the best Financial Institution

of the country, UTI. The Bank was set up with a capital of Rs. 115 crore, with

UTI contributing Rs. 100 crore, LIC - Rs. 7.5 crore and GIC and its four

subsidiaries contributing Rs. 1.5 crore each.

SUUTI - Shareholding 27.02%

Erstwhile Unit Trust of India was set up as a body corporate under the UTI Act,

1963, with a view to encourage savings and investment. In December 2002, the

UTI Act, 1963 was repealed with the passage of Unit Trust of India (Transfer of

Undertaking and Repeal) Act, 2002 by the Parliament, paving the way for the

bifurcation of UTI into 2 entities, UTI-I and UTI-II with effect from 1st February

2003. In accordance with the Act, the Undertaking specified as UTI I has been

transferred and vested in the Administrator of the Specified Undertaking of the

Unit Trust of India (SUUTI), who manages assured return schemes along with

6.75% US-64 Bonds, 6.60% ARS Bonds with a Unit Capital of over Rs. 14167.59

crores. The Government of India has currently appointed Shri K. N. Prithviraj as

the Administrator of the Specified undertaking of UTI, to look after and

administer the schemes under UTI where Government has continuing obligations

and commitments to the investors.

38

The Bank has strengths in both retail and corporate banking and is committed to

adopting the best industry practices internationally in order to achieve excellence. The

Bank's Registered Office is at Ahmedabad and its Central Office is located at

Mumbai. The Bank has an extensive network of 1947 domestic branches (including

extension counters) and 11,245 ATMs spread across the country as on 31st March

2013 providing 24 hrs a day banking convenience to its customers. This is one of the

largest ATM networks in the country. The Bank also has overseas offices in

Singapore, Hong Kong, Shanghai, Colombo, Dubai and Abu Dhabi.

With a balance sheet size of Rs.3,40,561 crores as on 31st March 2013, Axis Bank

has achieved consistent growth and stable asset quality with a 5 year CAGR (2009-

13) of 26% in Total Assets, 24% in Total Deposits, 27% in Total Advances and 37%

in Net Profit.

Axis Bank operates in four segments: treasury operation, retail banking,

corporate/wholesale banking, and other banking business. The Bank has set up eight

wholly-owned subsidiaries:

� Axis Capital Ltd.

� Axis Private Equity Ltd.

� Axis Trustee Services Ltd.

� Axis Asset Management Company Ltd.

� Axis Mutual Fund Trustee Ltd.

� Axis Bank UK Ltd.

� Axis Securities Ltd.

� Axis Finance Ltd.

Vision:

Vision To be the preferred financial solutions provider excelling in customer

delivery through insight, empowered employees and smart use of technology .

Mission:

Mission Customer service and product innovation tuned to diverse need of

individual and corporate clients Continuous technology up gradation while

39

maintaining human values Progressive globalization and achieving international

standards Efficiency and effectiveness built on ethical practices.

Core values…:

Core values… Customer satisfaction through Providing quality service efficiently

and effectively “Smile, it enhances your face value”, is a service quality stressed

on Periodic customer service audit Maximization of stakeholders value Success

through Teamwork, Integrity and People .

Business Segments : An Overview

Retail

Banking

AXIS Bank offers a complete suite of products across

deposits, loans, investment solutions, payments and cards

and is committed to develop long-term relationships with

its customers by providing high-quality services. Retail

Banking is one of the key drivers of the Bank’s growth

strategy & it follows an effective customer segmentation

strategy . Over the last five years , there has been a vast

increase in Saving Bank deposits , Retail Term Deposits and

Retail Loans. The Bank is one of the largest debit card

issuers in the country and the sixth largest credit card issuer

in the country . The Bank also offers products in the area of

retail forex and remittances, including travel currency cards,

inward and outward wire transfers, travelers cheques and

foreign currency notes, remittance facilities through online

portals as well as through collaboration with correspondent

banks, exchange houses and money transfer operators . A

business vertical of Bank - ‘Axis Bank Privée’ offers private

banking solutions to meet the personalized investment needs

of high net worth individuals as well as the corporate

advisory needs of families in business. AXIS Bank is one of

the leading banking distributors of mutual funds in India

also distributes third party products such as Banc assurance

40

products (life and general insurance), online trading and

gold coins through its branches. AXIS Bank has a large

network of ATM and has deployed 550 Automated Deposit

Machines (for cash deposits into customer accounts) and

other important alternate channels of the Bank like- internet

banking, mobile banking and phone banking .

Business

Banking

Business Banking aspect aim at providing customized

transactional banking solutions to fulfill customer’s business

requirement. AXIS Bank offers a range of current account

products and cash management solutions across all business

segments covering corporate , institutions, central and state

government ministries and undertakings , small and retail

business customers . The Bank also focuses on providing

host-to-host integration for both collections and payments

for seamless transactions and information flow and

provides comprehensive structured MIS reports on a

periodic basis, for better accounting and reporting. The

Bank is a SEBI-registered custodian and offers custodial

services to both domestic and offshore customers. The Bank

accepts income and other direct taxes , central excise and

service taxes though authorized branches . The Bank also

provides collection and payment services to four central

government ministries/departments and 13 state

governments and union territories. The Bank is associated

with 11 state governments towards undertaking Electronic

Benefit Transfer (EBT) projects for disbursement of

government benefits (wages under MGNREGS and Social

Security Pension (SSP)) through direct credit to beneficiary

bank accounts under smart card based IT enabled financial

inclusion model.

41

Corporate

Credit

The corporate credit portfolio of the Bank comprising

advances to large and mid-corporate and also includes

advances at overseas branches . AXIS Bank also provides

corporate credit for Infrastructure Business including project

and bid advisory services, project lending, debt syndication,

project structuring and due diligence, securitization and

structured finance .

Treasury

AXIS Bank has emerged as one of the leading banks

providing foreign exchange and trade finance services to

customers across various industries, segments and regions.

It plays an important role in the sovereign debt markets and

participates in primary auctions of RBI. AXIS Bank

integrated treasury is serving both domestic and global

markets through its various verticals like - The Foreign

Exchange and Money market Group , Active Balance Sheet

Management Group , Interest Rates and Derivatives Group

and The Global Financial Institutions Division (GFID)

group .

International

Banking

The overseas network of the Bank currently spans the major

financial hubs in Asia. The Bank now has a foreign network

of four branches at Singapore, Hong Kong, DIFC-Dubai and

Colombo (Sri Lanka), and three representative offices at

Shanghai, Dubai and Abu Dhabi, besides strategic alliances

with banks and exchange houses in the Gulf Co-operation

Council (GCC) countries.

Agriculture AXIS Bank offers a diverse range of lending solutions to the

farming clientele and other stakeholders in the agriculture

value chain . AXIS Bank has a cluster-centric approach for

agricultural intensive areas and follows a decentralized

approach with Agriculture Business Centres (ABCs) at

various locations across the country . The Bank focuses on

increasing the business reach rural and semi-urban areas by

increasing the number of agriculture clusters and ABCs and

42

by providing consistent growth of portfolio and maintaining

quality of assets, business, credit, operations and collections

functions in this business . Apart from lending to farmers,

the Bank also actively participates in awareness campaigns

and forming farmer’s clubs in many of its upcountry

branches in co-ordination with National Bank for

Agriculture and Rural Development (NABARD). The Bank

also supports the weaker sections of society through its

lending to Micro Finance Institutions (MFIs).

Financial

Inclusion

AXIS Bank aims at enabling customers in rural markets to

use formal banking channels for their banking needs such as

savings, payments, credit and insurance. The Bank offers

no-frills accounts, tailor-made fixed deposits and recurring

deposit products to meet the savings requirements of

customers . The Bank is also a leading player in the

remittance market, enabling migrant workers in urban areas

remit money to their families in the hinterland. The Bank

endeavors to meet the entire set of financial needs of its

customers, including micro-lending, ‘Chhota-deposits’ and

micro-insurance . The Bank also actively participates in

electronic/direct benefit transfer for disbursal of benefits

under various government schemes using smart cards and

biometric authentication technology. The Bank has made

significant investments in technology, and is integrated with

the Aadhar platform through NPCI to enable transfer of

Aadhar based social welfare benefits.

Business Segments : An Overview

Figure :1.11

43

Awards & Recognitions :

• 2013 : .Best Debt House in India - Euromoney Awards for Excellence

2013

• 2013 : Axis Bank ranked No 1 company to work for in the BFSI sector -

'The Best Companies to Work for' survey by Business Today

• 2012 : .Bank of the Year - Money Today FPCIL Awards 2012-13

• 2012 : Best Bank - CNBC-TV18 India’s Best Bank and Financial

Institution Awards 2012

• 2012 :.Best Bank - Runner Up - Outlook Money Awards 2012

• 2012 : Consistent Performer - India’s Best Banks – 2012 Survey by

Business Today & KPMG

• 2012 : Fastest Growing Large Bank - Dun & Bradstreet - Polaris Financial

Technology Banking Awards 2012

• 2012 : Fastest Growing Large Bank – Business world Best Banks Survey

2012

• 2012 : Best Domestic Bond House - The Asset Triple A Country Awards

2012 - Our Bank has been honored with this award for the third year in a

row.

• 2012 : India Bond House of the year - IFR ASIA - Country Awards 2012

• 2012 : Deal Maker of the Year in Rupee Bonds – Business world Magna

Awards - India's Best Deal Makers 2012

• 2012 : The Best Emerging Bullion Dealing Bank - 9th India International

Gold Convention-2011-12

• 2012 : Best Acquiring Institution in South Asia - Visa LEADER Award at

Visa’s 2012 APCEMEA Security Summit, Bali

• 2012 : Gold Shield for Excellence in Financial Reporting in the Private

Banks category - 2011-12 - ICAI (Institute of Chartered Accountants of

India)

• 2011 : Bank of the Year – India –The Banker Awards 2011

• 2011 :Best Bank in the Private Sector - NDTV Profit Business Leadership

Awards 2011

• 2011 : Best Bank - Outlook Money Awards 2011

44

• 2011 : The Best Domestic Bank – India - The Asset Triple A Country

Awards 2011

• 2011 : Fastest Growing Bank - Bloomberg UTV Financial Leadership

Awards 2012

• 2011 : Most Productive Private Sector Bank- FIBAC 2011 Banking

Awards

• 2011 : 3rd Strongest Bank in Asia -Pacific Region by Asian Banker

• 2011 : Brand Excellence Award- 2011(BFSI Sector) - Star News

• 2011 : Most Preferred Bank amongst retail consumers - CLSA survey on

personal banking trends

• 2011 : Best Bond House India - 2011 by Finance Asia

• 2011 : Best Risk Master award - (Private Sector Category) – FIBAC 2011

Banking Awards

• 2010 : Best Debt House in India - Euromoney 2010

• 2010 : Best Domestic Debt House in India - Asiamoney 2010

• 2010 : Best Bond House in India - Financeasia 2010

• 2010 : Best New Private Sector Bank, Rank 2 - FE Best Banks Award

2010

• 2010 : The Best of Asia-Pacific’s Biggest Listed Companies- second year

in a row - Forbes Fab 50

• 2010 : The Asset Awards 2010:Best Domestic Bank, India

• 2010 : The Asset Awards 2010:Best Domestic Bond House, India

• 2010 : Overall Winner & Consistent Performer -(Large Banks Category) -

Business Today Best Bank Awards 2010

• 2010 : Fastest Growing Large Bank - Business World’s Best Banks Award

2010

• 2010 : Ranked No. 1 in "overall experience with bank staff" and "overall

branch facilities" by The Hindustan Times-MaRS Survey Report dated,

29th March, 2010

45

Corporate Social Responsibility

AXIS Bank has set up a Trust – the Axis Bank Foundation (ABF) to channel its

philanthropic initiatives. The Foundation has committed itself to participate in

various socially relevant endeavours with a special focus on providing sustainable

livelihoods, poverty alleviation, education of the underprivileged, healthcare etc.

The Bank has decided to contribute up to one percent of its net profit annually to

the Foundation under its CSR initiatives. The major contribution of AXIS Bank as

part of Corporate Social Responsibility is highlighted as :

• The Foundation is running 40 programs across 163 districts in 19 states,

targeting 7,27,059 beneficiaries.

• 23 programs are running in the field of education covering 33 districts in

13 states promoting supplementary education, education for the

mentally/physically challenged, hearing impaired, visually challenged .

The Foundation has disburse Rs 6.23 crores for various education

programs.

• Axis Bank Foundation is working with Lifeline Foundation since 2007 for

supporting the highway rescue projects in the states of Maharashtra,

Kerala, Gujarat and Rajasthan. It has provided aid to around 7,500 critical

accident victims and more than 15,000 minor accident victims.

• The Foundation aims to provide one million livelihoods to the

underprivileged in some of the most backward regions of the country by

2017, 50% of the beneficiaries being women.

• The Foundation has partnered with 17 NGOs to provide sustainable

livelihoods and has launched projects in partnership with these NGOs in

the states of West Bengal, Odisha, Tamil Nadu, Maharashtra, Jharkhand,

Chhattisgarh, Bihar, Uttar Pradesh and Madhya Pradesh.

• 17 programs are running in the field of livelihood covering 136 districts in

17 states .

• The Foundation is also actively involved in implementing several

initiatives in Green Banking. Reduce, Reuse and Recycle’ theme of Green

46

Banking , launched in August 2011, has helped recycle around 87,206

kilograms since inception.

• The Bank launched an employee payroll program titled ‘Axis Cares’. As

on 31st March 2013, 7,524 officers of the Bank have enrolled for Axis

Cares with a monthly collection of Rs. 14.64 lacs. The funds collected

under this initiative are utilized for the programs of the Foundation and the

details of utilization are shared with the officers every month.

• ‘Basket of Hope’, initiative of the Foundation organizes collection drives

for clothes, books and toys for distribution to the needy.

• ‘Gift of Life’ initiative of the Foundation organizes blood donation drives

across the country, through which 1,934 units of blood has been collected.

• Exhibitions of various NGOs are held at the Corporate Office and other

offices of the Bank, to provide a platform to these NGOs for exhibiting

their products and popularize their work.

History of Axis bank:

1993: The Bank was incorporated on 3rd December and Certificate of business on

14th December. The Bank transacts banking business of all description. UTI

Bank Ltd. was promoted by Unit Trust of India, Life Insurance Corporation of

India, General Insurance Corporation of India and its four subsidiaries. The bank

was the first private sector bank to get a license under the new guidelines issued

by the RBI.

1997: The Bank obtained license to act as Depository Participant with NSDL and

applied for registration with SEBI to act as `Trustee to Debenture Holders'.

Rupees 100 crores was contributed by UTI, the rest from LIC Rs 7.5 crores, GIC

and its four subsidiaries Rs 1.5 crores each.

1998: The Bank has 28 branches in urban and semi urban areas as on 31st July.

All the branches are fully computerized and networked through VSAT. ATM

services are available in 27 branches. The Bank came out with a public issue of

1,50,00,000 No. of equity shares of Rs 10 each at a premium of Rs 11 per share

47

aggregating to Rs 31.50 crores and Offer for sale of 2,00,00,000 No. of equity

shares for cash at a price of Rs 21 per share. Out of the public issue 2,20,000

shares were reserved for allotment on preferential basis to employees of UTI

Bank. Balance of 3,47,80,000 shares were offered to the public. The company

offers ATM cards, using which account-holders can withdraw money from any of

the bank's ATMs across the country which is inter-connected by VSAT. UTI Bank

has launched a new retail product with operational flexibility for its customers.

UTI Bank will sign a co-brand agreement with the market, leader, Citibank NA

for entering into the highly promising credit card business. UTI Bank promoted by

India's pioneer mutual fund Unit Trust of India along with LIC, GIC and its four

subsidiaries.

1999: UTI Bank and Citibank have launched an international co-branded Credit

card. UTI Bank and Citibank have come together to launch an international co-

branded credit card under the MasterCard umbrella. UTI Bank Ltd has

inaugurated an off site ATM at Ashok Nagar here, taking the total number of its

off site ATMs to 13.m

2000: The Bank has announced the launch of Tele-Depository Services for Its

depository clients. UTI Bank has launch of `iConnect', its Internet banking

Product. UTI Bank has signed a memorandum of understanding with

equitymaster.com for e-broking activities of the site. Infinity.com financial

Securities Ltd., an e-broking outfit is Typing up with UTI Bank for a banking

interface. Geojit Securities Ltd, the first company to start online trading services,

has signed a MoU with UTI Bank to enable investors to buy\sell demat stocks

through the company's website. India bulls have signed a memorandum of

understanding with UTI Bank. UTI Bank has entered into an agreement with

Stock Holding Corporation of India for providing loans against shares to

SCHCIL's customers and funding investors in public and rights issues. ICRA has

upgraded the rating UTI Bank's Rs 500 crore certificate of deposit programmed to

A1+. UTI Bank has tied up with L&T Trade.com for providing customized online

trading solution for brokers.

48

2001: UTI Bank launched a private placement of non-convertible debentures to

rise up to Rs 75 crores. UTI Bank has opened two offsite ATMs and one extension

counter with an ATM in Mangalore, taking its total number of ATMs across the

country to 355. UTI Bank has recorded a 62 per cent rise in net profit for the

quarter ended September 30, 2001, at Rs 30.95 crore. For the second quarter

ended September 30, 2000, the net profit was Rs 19.08 crore. The total income of

the bank during the quarter was up 53 per cent at Rs 366.25 crore.

2002: UTI Bank Ltd has informed BSE that Shri B R Barwale has resigned as a

Director of the Bank w.e.f. January 02, 2002. A C Shah, formerchairman of Bank

of Baroda, also retired from the bank’s board in the third quarter of last year. His

place continues to be vacant. M Damodaran took over as the director of the board

after taking in the reins of UTI. B S Pandit has also joined the bank’s board

subsequent to the retirement of K G Vassal. UTI Bank Ltd has informed that Shri

Paul Fletcher has been appointed as an Additional Director Nominee of CDC

Financial Service (Mauritius) Ltd of the Bank.And Shri Donald Peck has been

appointed as an Additional Director (nominee of South Asia Regional Fund) of

the Bank. UTI Bank Ltd has informed that on laying down the office of Chairman

of LIC on being appointed as Chairman of SEBI, Shri G N Bajpai, Nominee

Director of LIC has resigned as a Director of the Bank.

2002: B Paranjpe & Abid Hussain cease to be the Directors of UTI Bank.UTI

Bank Ltd has informed that in the meeting of the Board of Directors following

decisions were taken: Mr Yash Mahajan, Vice Chairman and Managing Director

of Punjab Tractors Ltd were appointed as an Additional Director with immediate

effect. Mr N C Singhal former Vice Chairman and Managing Director of SCICI

was appointed as an Additional Director with immediate effect. ABN Amro, UTI

Bank in pact to share ATM. UTI Bank Ltd has informed BSE that a meeting of

the Board of Directors of the Bank is scheduled to be held on October 24, 2002 to

consider and take on record the unaudited half yearly/quarterly financial results of

the Bank for the half year/Quarter ended September 30, 2002. UTI Bank Ltd has

informed that Shri J M Trivedi has been appointed as an alternate director to Shri

Donald Peck with effect from November 2, 2002.

49

2003: UTI Bank Ltd has informed BSE that at the meeting of the Board of

Directors of the company held on January 16, 2003, Shri R N Bharadwaj,

Managing Director of LIC has been appointed as an Additional Director of the

Bank with immediate effect.- UTI Bank, the private sector bank has opened a

branch at Nellore. The bank's Chairman and Managing Director, Dr P.J. Nayak,

inaugurating the bank branch at GT Road on May 26. Speaking on the occasion,

Dr Nayak said. This marks another step towards the extensive customer banking

focus that we are providing across the country and reinforces our commitment to

bring superior banking services, marked by convenience and closeness to

customers. -UTI Bank Ltd. has informed the Exchange that at its meeting held on

June 25, 2003 the BOD have decided the following: 1) To appoint Mr. A T Pannir

Selvam, former CMD of Union Bank of India and Prof. Jayanth Varma of the

Indian Institute of Management, Ahmedabad as additional directors of the Bank

with immediate effect. Further, Mr. Pannir Selvam will be the nominee director of

the Administrator of the specified undertaking of the Unit Trust of India (UTI-I)

and Mr. Jayanth Varma will be an Independent Director. 2) To issue Non-

Convertible Unsecured Redeemable Debentures up to Rs.100 crs, in one or more

tranches as the Bank's Tier - II capital. -UTI has been authorized to launch 16

ATMs on the Western Railway Stations of Mumbai Division. -UTI filed suit

against financial institutions IFCI Ltd in the debt recovery tribunal at Mumbai to

recover Rs.85cr in dues. -UTI bank made an entry to the Food Credit Programme;

it has made an entry into the 59 cluster which includes private sector, public

sector, old private sector and co-operative banks. -Shri Ajeet Prasad, Nominee of

UTI has resigned as the director of the bank. -Banks Chairman and MD Dr. P. J.

Nayak inaugurated a new branch at Nellore.-UTI bank allots shares under

Employee Stock Option Scheme to its employees. -Unveils pre-paid travel card

'Visa Electron Travel Currency Card' -Allotment of 58923 equity shares of Rs 10

each under ESOP. -UTI Bank ties up with UK govt fund for contract farm in -Shri

B S Pandit, nominee of the Administrator of the Specified Undertaking of the Unit

Trust of India (UTI-I) has resigned as a director from the Bank wef November 12,

2003. -UTI Bank unveils new ATM in Sikkim.

2004: Comes out with Rs. 500 mn Unsecured Redeemable Non-Convertible

Debenture Issue, issue fully subscribed -UTI Bank Ltd has informed that Shri

50

Ajeet Prasad, Nominee of the Administrator of the Specified Undertaking of the

Unit Trust of India (UTI - I) has been appointed as an Additional Director of the

Bank w. e. f. January 20, 2004.-UTI Bank opens new branch in Udupi-UTI Bank,

Geojit in pact for trading platform in Qatar -UTI Bank ties up with Shriram Group

Cos -Unveils premium payment facility through ATMs applicable to LIC UTI

Bank customers –Metal junction (MJ)- the online trading and procurement joint

venture of Tata Steel and Steel Authority of India (SAIL)- has roped in UTI Bank

to start off own equipment for Tata Steel. -DIEBOLD Systems Private Ltd, a

wholly owned subsidiary of Diebold Incorporated, has secured a major contract

for the supply of ATMs an services to UTI Bank -HSBC completes acquisition of

14.6% stake in UTI Bank for .6 m -UTI Bank installs ATM in

Thiruvananthapuram -Launches Remittance Card' in association with

Remit2India, a Web site offering money transfer services

2005: - UTI Bank enters into a banc assurance partnership with Bajaj Allianz

General for selling general insurance products through its branch network. -UTI

Bank launches its first Satellite Retail Assets Centre (SRAC) in Karnataka at

Mangalore.

2006: -UBL sets up branch in Jaipur -UTI Bank unveils priority banking lounge.

New Milestones

2013 Axis Bank voted for Most Trusted Private Sector Bank in the country in

the Most Trusted Brands survey 2013 by Brand Equity.

2013 Best Financial Website - India Digital awards

2013 'Bank of the Year' at the Money Today FPCIL Awards 2012-13

2012 Becomes the first Bank in the world to reach $2 billion loading on prepaid

Travel Currency Cards

2012 Reached 2 lakh installed EDC machines – the highest for any bank in

India

51

2012 Opens the 10,000th ATM - Largest ATM network amongst private sector

banks in India

2011 The Bank inaugurates Axis House, its new Corporate Office at Worli,

Mumbai.

2011 Launches India travel card - India's first and only Indian currency prepaid

travel card for foreign nationals

2010 Opens it's 1000th branch at MET Bandra Reclamation, Mumbai

2008 Opens its Dubai Representative Office

Mar-08 Axis Bank launches Platinum Credit Card, India's first EMV chip based

card

Dec-07 Axis Bank gets AAA National Long-Term Rating from Fitch Ratings

Sept-07 Axis Bank ties up with Banque Privée Edmond de Rothschild Europe for

Wealth Management

July-07 UTI Bank re-brands itself as Axis Bank

July-07 UTI Bank successfully raises USD 1050 million

July-07 UTI Bank ties up with Tata Motors Ltd. for Car Loans

June-07 UTI Bank's expansion into Asia supported by FRS

May-07 UTI Bank launches 'Spice Rewards' on the bankcards - India's first-ever

merchant-supported rewards program

April-

07

UTI Bank opens a Financial Services Category I Branch in the DIFC in

Dubai

Mar-07 UTI Bank ties up with Hyundai Motor India Ltd. for Car Loans

Mar-07 UTI Bank ties up with IIFCL to provide finance for infrastructural projects

in the country

Mar-07 UTI Bank launches Car Loans in association with Maruti Udyog Ltd

52

Mar-07 UTI Bank opens a Full License Bank Branch in Hong Kong

Feb-07 Finance Minister Shri P. Chidambaram Launches Shriram - UTI Bank Co

- Branded Credit Card Exclusively For Small Road Transport Operators

(SRTOS)

Feb-07 UTI Bank announces the launch of its Meal Card

Feb-07 UTI Bank announces the launch of its Gift Card

Feb-07 LIC Premium payment now through UTI Bank Branches

Jan-07 UTI bank opens Priority Banking branch in Mumbai and Kolkata

Nov-06 UTI Bank opens Priority Banking Lounge in Pune

Sep-06 UTI Bank launches operations of UBL Sales, its Sales Subsidiary -

Inaugurates its first office in Bangalore

Aug-06 UTI Bank announces the launch of its Credit Card Business

Aug-06 UTI Bank becomes the first Indian Bank to successfully issue Foreign

Currency Hybrid Capital in the International Market

Aug-06 UTI Bank Business Gold Debit Card MasterCard Launched - Designed for

business related spending by SMEs and self employed professionals

Aug-06 UTI Bank announces the scheme of issuance of "Senior Citizen ID Card"

in association with Dignity Foundation

Aug-06 UTI Bank rolls out its 2000th ATM

July-06 UTI Bank opens Representative Office in Shanghai

May-06 UTI Bank and LIC join hands to launch an Annuity Card for group

pensioners of LIC

May-06 UTI Bank ties up with Geojit Financial Services to offer Online Trading

service to its customers

Apr-06 UTI Bank opens its first international branch in Singapore

53

Jan-06 UTI Bank and UTI Mutual Fund to launch a new service for sale and

redemption of mutual fund schemes through the Bank's ATMs across the

country

Dec-05 UTI Bank wins International Financing Review (IFR) Asia 'India Bond

House' award for the year 2005

Oct-05 UTI Bank extends banking services to the rural milk producers in Anand

and Kheda districts in Gujarat

July-05 UTI Bank and Visa International launch Mobile Refill facility - Anytime,

Anywhere Pre-Paid Mobile Refill for all Visa Cardholders in India

May-05 UTI Bank and Bajaj Allianz join hands to distribute general insurance

products

Apr-05 UTI Bank launches Smart Privilege - a special bank account designed for

women

Mar-05 MTNL ties up with UTI Bank for payment of telephone bills through the

Bank's ATM network

Mar-05 UTI Bank gets listed on the London Stock Exchange, raises US$ 239.30

million through Global

Mar-05 Depositary Receipts (GDRs)

Feb-05 UTI Bank appointed by Government of Karnataka as the sole banker for

the Bangalore One (B1) project

Feb-05 UTI Bank launches a powerful version of Kisan Credit Card

Jan-05 UTI Bank ties up with Remit2India to launch the Remittance Card

Mar-04 UTI Bank enables premium payment of LIC policies through its ATMs.

Feb-04 Bilateral arrangement between State Bank of India (and its 7 associate

member banks) and UTI Bank. comes into force with the commencement

of operations (as on 3rd February '04) of the combined network of over

4000 ATMs

54

Feb-04 UTI Bank (by pursuing a proactive strategy of forging bilateral

agreements and being a progressive player in the multi-lateral consortiums

for shared ATM network) offers its customers access to over 7000 ATMs

across the country - the largest to be offered by any bank in India so far.

Dec-03 Bank inaugurated its ATM at Thegu near the Nathula Pass in Sikkim. This

ATM is at the highest altitude in India.

Sep-03 The Bank's ATMs across the country crosses the thousand mark

Sep-03 Bank launches the Travel Currency Card.

Aug-03 The Bank's Debit Card crosses the one million mark.

Aug-03 Total Advances cross Rs 7,000 Crore.

May-03 Bank declares a net profit of Rs 192.18 crores for FY03, a growth of 43%

over the previous year

Mar-03 Bank signs Agreement with Employees Provident Fund Organization

(EPFO) for disbursement of Pension

Mar-03 Bank crosses the 800 ATM mark

Mar-03 The Bank issues 3,83,62,834 fully paid up equity shares totaling to Rs.

164.00 crores, through a

Mar-03 Preferential offer to Life Insurance Corporation of India (now constituting

13.54% of

Mar-03 the Bank's expanded equity), Citicorp Banking Corporation, Bahrain

(holding 3.84%), Chris Capital I,

Mar-03 LLC, Mauritius (holding 3.84%) and Karur Vysya Bank Ltd.(constituting

1.00%) The Bank also

Mar-03 Increases the authorized share capital of the Bank from Rs. 230 crores to

Rs. 300 crores.

Feb-03 Bank, in a pioneering move, launches the AT PAR Cheque facility, free of

55

cost, for all its Savings Bank customers.

Feb-03 Bank wins mandate to set up 14 ATMs at the Western Railway stations

along the Mumbai division.

Oct-02 Bank launches Corporate iConnect? - the Internet Banking facility for

Corporate

Aug-02 Bank signs MoU with BSNL regarding bill collection services across the

country through both online and offline channels.

Apr-02 Bank opens its 500th ATM

Mar-02 Deposits Cross Rs.12, 000 Crore

Jan-02 The Bank's 100th branch opens at Tuticorin, Tamilnadu

Jan-02 The Bank opens an ATM at the Gol Dak-Khana, i.e. the New Delhi GPO,

making it the first instance of a commercial bank setting up an ATM at

any post-office in the country.

Dec-01 Total Advances cross Rs 5,000 Crore

Nov-01 The deposit base for the Bank crosses Rs. 10,000 Crore

Sep-01 Private placement of 26% stake in the Bank to CDC Capital Partners. UTI

holding reduces to 44.88%

Aug-01 Bank signs MoU with India Post for introducing value added financial

products and services to customers of both organizations, including setting

up of UTI Bank ATMs in post offices.

July-01 Bank ties up with Govt of Andhra Pradesh for collection of commercial

tax

Dec-00 Bank opens its 200th ATM. It becomes the 2nd largest ATM network in

the country, a position held even today.

Oct-00 Bank becomes fully networked

July-00 E-commerce initiatives announced

56

July-00 Financial Advisory Services offered beginning with marketing of US 64

Apr-00 UTI Bank calls off its proposed merger with Global Trust Bank and surges

ahead on its own.

Apr-00 Bank launches its Internet banking module, iConnect Retail loans

introduced for the first time by the Bank

Mar-00 Profits cross Rs 50 crore mark for the first time.

Feb-00 Bank adopts Finacle software from Infosys for core banking

Jan-00 Dr.P.J Nayak takes over as Chairman and Managing Director from Shri

Supriya Gupta.

Sep-99 Cash management services (CMS) launched, Co branded credit card

launched

Mar-99 Deposits cross Rs.3000 crores

Sep-98 UTI Bank goes public with a Rs. 71 crore public issue; Issue over-

subscribed 1.2 times, over 1 lakh retail investors. UTI holding reduces to

60.85%

Jun-96 Crosses Rs.1000 crore deposit mark

Mar-95 Completes first profitable year in operation

Apr-94 First branch of UTI Bank inaugurated at Ahmedabad by Dr. Manmohan

Singh, Hon'ble Finance Minister, Government of India.

Dec-93 UTI Bank comes into being

Dec-93 Registered office at Ahmedabad; Head office at Mumbai

Milestone

Fig . 1.12

57

ICICI Bank

ICICI Bank (formerly Industrial Credit and Investment Corporation of India) is a

major banking and financial services organization in India. It was established in

1994 by the Industrial Credit and Investment Corporation of India, an Indian

financial institution, as a wholly owned subsidiary . ICICI Bank is India's largest

private sector bank with total assets of Rs. 5,367.95 billion (US$ 99 billion) at

March 31, 2013 and profit after tax Rs. 83.25 billion (US$ 1,533 million) for the

year ended March 31, 2013. The Bank has a network of 3,595 branches and

11,162 ATMs in India, and has a presence in 19 countries, including India .The

bank has subsidiaries in the United Kingdom, Russia, and Canada; branches in

United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai

International Finance Centre; and representative offices in United Arab Emirates,

China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia. ICICI Bank

offers a wide range of banking products and financial services to corporate and

retail customers through a variety of delivery channels and specialization

subsidiaries and affiliates in the areas of investment banking, life and non-life

insurance, venture capital and asset management. ICICI Bank is also the largest

issuer of credit cards in India. ICICI Bank's shares are listed on the stock

exchanges at Kolkata and Vadodara, Mumbai and the National Stock Exchange of

India Limited; its ADRs trade on the New York Stock Exchange (NYSE). ICICI

Bank is one of the Big Four banks of India, along with State Bank of India, Punjab

National Bank and Canara Bank its main competitors. It is the first bank in India

to provide online services. It is also the first bank in Asia (excluding Japan) to get

listed on the New York Stock Exchange (NYSE).

Corporate Social Responsibility :

ICICI Group strives to make a difference to its customers, to the society and to the

nation’s development directly through its products and services, as well as through

development initiatives and community outreach. ICICI Bank had set up a Social

Initiatives Group (SIG), a non-profit group within ICICI Bank in the year 2000 to

pioneer work on primary health, elementary education and access to finance.

58

• In the area of elementary education, it work to improve the quality of

schooling processes and outcomes in the public education system in India.

• ICICI Bank is running two Rural Self-Employment Training Institutes

(RSETIs) in Udaipur and Jodhpur as the first steps towards sustainable

livelihood initiative .

• ICICI Bank has recently begun an employee volunteering programme in

which ICICI Bank employees lead financial literacy trainings to youth.

• ICICI Bank corporate headquarters in Mumbai, organized blood donation

drive & the three-day blood donation drive drew an overwhelming response

with over 600 employees donated blood.

History

ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian

financial institution, and was its wholly-owned subsidiary. ICICI's shareholding in

ICICI Bank was reduced to 46% through a public offering of shares in India in

fiscal 1998, an equity offering in the form of ADRs listed on the NYSE in fiscal

2000, ICICI Bank's acquisition of Bank of Madura Limited in an all-stock

amalgamation in fiscal 2001, and secondary market sales by ICICI to institutional

investors in fiscal 2001 and fiscal 2002. 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.

In the 1990s, ICICI transformed its business from a development financial

institution offering only project finance to a diversified financial services group

offering a wide variety of products and services, both directly and through a

number of subsidiaries and affiliates like ICICI Bank. In 1999, ICICI become the

first Indian company and the first bank or financial institution from non-Japan

Asia to be listed on the NYSE.

After consideration of various corporate structuring alternatives in the context of

the emerging competitive scenario in the Indian banking industry, and the move

59

towards universal banking, the managements of ICICI and ICICI Bank formed the

view that the merger of ICICI with ICICI Bank would be the optimal strategic

alternative for both entities, and would create the optimal legal structure for the

ICICI group's universal banking strategy. The merger would enhance value for

ICICI shareholders through the merged entity's access to low-cost deposits,

greater opportunities for earning fee-based income and the ability to participate in

the payments system and provide transaction-banking services. The merger would

enhance value for ICICI Bank shareholders through a large capital base and scale

of operations, seamless access to ICICI's strong corporate relationships built up

over five decades, entry into new business segments, higher market share in

various business segments, particularly fee-based services, and access to the vast

talent pool of ICICI and its subsidiaries.

In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the

merger of ICICI and two of its wholly-owned retail finance subsidiaries, ICICI

Personal Financial Services Limited and ICICI Capital Services Limited, with

ICICI Bank. The merger was approved by shareholders of ICICI and ICICI Bank

in January 2002, by the High Court of Gujarat at Ahmedabad in March 2002, and

by the High Court of Judicature at Mumbai and the Reserve Bank of India in April

2002. Consequent to the merger, the ICICI group's financing and banking

operations, both wholesale and retail, have been integrated in a single entity.

ICICI Bank has formulated a Code of Business Conduct and Ethics for its

directors and employees.

ICICI Bank-erstwhile The Bank of Rajasthan Ltd.

The Reserve Bank of India approved the merger of Bank of Rajasthan with ICICI

Bank Ltd, India's largest private sector Bank. All branches of Bank of Rajasthan

are functioning as branches of ICICI Bank. The boards of both the banks on May

23, 2010 approved the merger for a share exchange ratio of 25 shares of ICICI

Bank for 118 shares of Bank of Rajasthan.

60

All customers are extended seamless services as per existing Bank of Rajasthan

procedures. All existing BoR products are continuing with current features and

charges. Customers are continuing to transact using their current BoR cheque

books, ATM cards, lockers etc. The minimum balance requirements and service

charges on all type of accounts are unchanged.

Post the system integration customers are getting the benefit from ICICI Bank's

enhanced branch network of over 2500 branches and over 5600 ATMs spread

across 1400 locations in the country. The Bank has a presence in 18 international

locations. ICICI Bank's extensive product suite caters to all banking requirements,

both corporate and retail, backed by a world class technology platform.

Objective

ICICI Bank’s Green initiative is to make healthy environment in the organization

i.e; to create intrapersonal skills amongst the customer and understanding between

employees of the organization.

Broad objectives of the ICICI are:

(a)To assist in the creation, expansion and modernization of private concerns;

(b)Tto encourage the participation of internal and external capital in the private

concerns;

(c) To encourage private ownership of industrial investment.

Vision:

To be the leading provider of financial services in India and a major global bank.

Mission:

ICICI Bank leverage people, technology, speed and financial capital to:

� Be the banker of first choice for customers by delivering high quality,

world-class products and services.

� Expand the frontiers of business globally.

� Play a proactive role in the full realization of India’s potential.

61

� Maintain a healthy financial profile and diversify earnings across

businesses and geographies.

� Maintain high standards of governance and ethics.

� Contribute positively to the various countries and markets in which it

operate.

� Create value for stakeholders.

Products & Services : Business Segments

Personal Banking

ICICI Bank has designed a gamut of accounts and

deposits to cater to your unique banking needs . It also

offers wide variety of Loans Products to suit the unique

requirements of customers. Along with deposit and loan

products, ICICI Bank offers a variety of insurance plans

that include Life Insurance, General Insurance, Car

Insurance, Home Insurance, Travel Insurance, etc.

Rural , Agri &

Micro Business

ICICI Bank recognizes the role of prompt finance, and

stable cashflows for

a business and offers a range of products tailored to

unique needs in Rural areas .

Privilege

Banking

ICICI Bank offers Privilege Banking products and

services to meet all banking and financial needs of select

customers . It provides a faster and differentiated

banking experience to premium customers for all

banking needs from deposits, loans, cards to investments

and insurance.

Wealth

Management

ICICI Bank provides Wealth Management offerings to

customers to give a comprehensive suite of services

matching their financial needs at every stage of life.

62

NRI Banking

ICICI Bank provides Banking services like Savings and

Deposits Account , money transfer , Home loans and

other convenient loans , investment services &

Insurance services as part of NRI Banking.

Corporate

Banking

ICICI Bank offers a wide range of services designed to

meet requirements to companies streamlined processes

based on a sound technological backbone . The services

offered includes – Cash Management services , Trade

services , Current Accounts, innovative FX services &

products & Corporate Internet Banking.

Products & Services : Business Segments

Fig . 1.13

Awards

• 1998 : Cyber Corporate Award by the Economic Times and Microland

Limited for making the best use of Internet for commercial purpose

• 1999 : Best IT usage Award by TCS Limited and Computer Society of

India.

• 1999: Asian Banking Award by the Asian Banker's Association for record

collections under the Resurgent India Bonds Scheme .

• 2000 : Best Bank Award by Global Finance.

• 2000 : I-payment was selected as a finalist in the commercial credit

product or services category in the Asian Banking Awards

• 2000 : Featured amongst the best 15 bank web sites in the world reviewed

by Forbes Global.

• 2001 : Best Retail Bank in India from the Asian Banker

• 2001 :Product Innovation Award for Kid-e-bank account from the Asian

Banker.

• 2001 :India's top 5 most respected companies, Business World Magazine

• 2002 : Bank of the Year from the Emerging Markets by The Banker

Magazine of UK

63

• 2002 : Bank of the Year 2002, in India, by The Banker Magazine of UK

Best Managed Bank in Asia, in a Poll by Euromoney

• 2002 : India's top 5 most respected companies - Business World magazine

• 2002 : Best Bank in India by Global Finance

• 2002 : India's Most Admired Bank 2002 in the BB-TN Sofres Mode Poll

• 2002 : 'Best Foreign Exchange Bank in India' by Global Finance.

• 2002 : 'Excellence in Retail Banking' award by Asian Bankers Journal

• 2002 : Best Consumer Internet Bank in India by Global Finance

• 2002 : Best Bank in India by Global Finance

• 2003 : "Best Bank of the Year in India" by FinanceAsia

• 2003 :"The Asian Banker Excellence in Retail Financial Services

Program" by The Asian Banker

• 2003 :"Best Bank Domestic Commercial Bank in India by Asiamoney

• 2003 :"Best Emerging Market Bank in India" by Global Finance Magazine

• 2003 :"Best Multi-Channel Strategy 2003' award by The Banker

Magazine, UK.

• 2003 :"Bank of the Year in India" by The Banker

• 2003 :Grand Prize Winner in Peak Workload, Unix Environments, OLTP

in Winter Corp.'s Top Ten Program

• 2003 :DM Review Magazine-World Class Solution Award 2003 in the

Business Intelligence category for its Teradata enterprise data warehouse

solution.

• 2003 :"Best Consumer Internet Bank in India" by Global Finance

magazine

• 2003 :"Best Integrated Consumer Bank Site in the Asia /Pacific Region"

by Global Finance

• 2003 :"Best Foreign Exchange Bank in India" by Global Finance

• 2003 :"Best Trade Finance Bank in India" by Global Finance

• 2004: Best Bank in India Award presented by Euromoney Magazine

• 2004 : American Indian Foundation's Leadership for Social

Entrepreneurship in India

• 2004 :"Best High-Yield Borrower in India" by Euromoney

• 2004 : "India's Most Customer Friendly Bank" by Outlook Money

64

• 2004 :"Best Bank" by Business India

• 2004 :"India Derivative House of the Year" by AsiaRisk

• 2004 :"Best Consumer Internet Bank in India" by Global Finance

• 2004 :"Best Corporate / Institutional Internet Bank in India" by Global

Finance

• 2004 :"Most Challenging IT Implementation Award" for the ICICI Bank

EAI project by PC Quest

• 2004 :"Best Domestic Commercial Bank" in India by Asiamoney

• 2004 :"Best Emerging Market Bank in India" by Global Finance

• 2004 :"Best Domestic Fx Bank in India" by Asiamoney Poll

• 2004 :"Best Bank of the Year in India" by Finance Asia

• 2004 :"Best Retail Bank in India" by Asian Banker

• 2004 :"Best Foreign Exchange Bank in India" by Global Finance

• 2004 :"India's Most Admired Private Sector Bank" by Business Barons

• 2005 : The Asian Banker Leadership Achievement Award 2005 for India

for Mr.K.V.Kamath

• 2005 : Businessman of the Year Award for Mr.K.V.Kamath by Business

India

• 2005 : JRD Tata Corporate Leadership Award for Mr.K.V.Kamath

• 2005 : Best Local Cash Management Bank Overall for Domestic Cash

Management Services - Asiamoney

• 2005 : Best Local Cash Management Bank for Most Innovative Cash

Management Solutions - Asiamoney

• 2005 : Listed on Forbes' Asia's Fab 50

• 2005 : Listed in Business Week Top 50 Performers

• 2005 : Economic Times Award for Businesswoman Of The Year

• 2005 : Triple AAA Best Cash Management Country Award in India" by

The Asset

• 2005 : Bank of the Year Award for India by The Banker

• 2005 : Best Bank in India by Euromoney

• 2005 : Best Integrated Consumer Bank Site in Asia by Global Finance

• 2005 : Best Consumer Internet Bank in India by Global Finance

65

• 2005 : Best Corporate / Institutional Internet Bank by Global Finance

• 2005 : Building Talent Enterprise-wise Award for Excellence in Learning

from the American Society for Training and Development

• 2006 : Bank of the Year 2006 India by the Banker

• 2006 : THE ASSET TRIPLE AAA Awards for :

� Best Transaction Bank in INDIA

� Best Trade Finance in India

� Best Domestic Custody in India

• 2006 : Business Standard's Banker of the Year for Mr.K.V.Kamath

• 2006 : CNBC-TV18 India Business Leader Award for Mr. K. V. Kamath

• 2006 : Business India's Best Bank of the Year 2006

• 2006 : Ms.Chanda Kochhar featured on Fortune's 50 Most Powerful

Women in International Business.

• 2006 : NDTV Profit Business Leadership Award in the Banking category.

• 2006 : Ms. Kalpana Morparia and Ms. Lalita Gupte featured on Forbes

Most Powerful Women

• 2006 : CII National Award for Energy Management

• 2006 : Business Baron - Most Admired Bank

• 2006 : Global Finance Award for World's Best Foreign Exchange Bank

from India" and the "World's Best Trade Finance from India"

• 2006 : Global Finance Awards for :

� Best Integrated Consumer Bank Site in Asia

� Bill Presentment and Payment in Asia

� Best Consumer Internet Bank in India

� Best Corporate/ Institutional Internet Bank in India

• 2006 : ICICI Bank wins three awards for outstanding performance from

Asian Banker

� Best Retail Bank India

� Excellence in Multi Channel Distribution

� Excellence in Automobile Lending Award

• 2006 : Reader's Digest India - Most Trusted Brand Award for 2006 voted

by consumers

66

• 2007: ICICI Bank has been conferred the Euromoney Award 2007 for the

Best Bank in the Asia-Pacific Region

• 2007: ICICI Bank wins the Excellence in Remittance Business award by

The Asian Banker

• 2007 : ICICI Bank won the "Most Customer Responsive Company" award

in the Banking and Financial Services vertical at The Economic Times -

Avaya Global Connect Customer Responsiveness Awards 2007

• 2007 : Asset Asian Awards 2007 Triple A

� Country Awards for the Best Domestic Bank in India

� Triple A House and Deal Awards for

� Best Investment Grade Bond- India

� Best follow on offering for The Asset 2007

� Best Syndicated Loan

• 2007 : ICICI Bank won "The Bankers Award" for the Bank of the Year

(India)

• 2007 : Mr. K. V. Kamath named Forbes Asia's Businessman of the Year.

• 2007 : ICICI Bank named as one of the "Fabulous 50 companies in Asia"

by Forbes Asia

• 2007 : Mr. K. V. Kamath won the Lifetime achievement Award at the

seventh Annual Teacher's Achievement Awards.

• 2007 : Ms. Chanda Kochhar won the Teachers Achievement Award in the

business category.

• 2007 : Best Regional Private Bank - Asia Pacific Award at the 17th Private

Banker International Awards.

• 2007 : Mr. K. V. Kamath featured among Asiamoney's top 100 most

powerful businessmen from Asia.

• 2007 : Ms Chanda Kochhar ranked 33rd in the Fortune's List of 50 Most

Powerful Women in Global Business.

• 2007 : ICICI Bank was one of the four Indian companies to make it to the

global list of Top Companies for Leaders 2007, according to a survey

conducted by Hewitt Associates in partnership with the RBL group and

Fortune magazine.

67

• 2007 : ICICI Bank adjudged winner of the annual CIO 100 awards in

recognition of the organization's pre-eminence in the area of Innovative

technology deployment.

• 2007 : Ms Chanda Kochhar featured in the list of Business Today's 25

most powerful women leaders.

• 2007 : Best private sector bank by Outlook Money NDTV Profits Awards

2007

• 2007 : The Uptime Champion Awards 2007

• 2007 : The Economic Times Business Leader of the Year Award for

Mr.K.V.Kamath

• 2007 : CNBC Awaaz Consumer Awards 2007 for:

� Most Preferred brand for Auto Loans

� Most Preferred brand for Credit Cards

� Most Preferred brand for Financial Advisory Services

� Most Preferred brand for Home Loans

• 2007 : Global Finance Awards for :

� The Best Consumer Internet Bank in India

� The Best Corporate / Institutional Internet Bank in India

• 2007 : ICICI Bank has won the Euromoney Award for the "Best Bank in

Asia" and "Best Bank in India"

• 2007 : Asia's Best Financial Borrower 2007 - Euromoney

• 2007 : Best Bank in the New Private Sector Bank category By Financial

Express.

• 2007 : Excellence in Remittance Business Award, 2006 from Asian

Banker.

• 2007 : ICICI Bank won the Reader's Digest Trusted Brand Gold Award for

the Bank category in India in 2007.

• 2008: The Asset Triple A Country Awards for Best Domestic Bank in

India.

• 2008: ICICI Bank wins the "Best Bank in India" Award from NDTV

Profit-Outlook Money

68

• 2008: ICICI Bank wins the "Most Preferred Brand of Auto Loans" Award

and the "Most Preferred Brand of Credit Cards" Award from CNBC

Awaaz

• 2008: Mr K. V. Kamath, MD & CEO, ICICI Bank, receives the Lifetime

Achievement Award at the NDTV Profit Business Leadership Awards

2008

• 2008: Ms. Chanda Kochhar, Joint MD & CFO, ICICI Bank, ranked 25th in

Fortune International Power 50 list

• 2008: Ms Chanda Kochhar, Joint MD & CFO, ICICI Bank and Ms

Madhabi Puri-Buch, Executive Director, ICICI Bank, selected among the

25 Most Powerful Women in Indian business by Business Today

• 2008: ICICI Bank wins the 2008 Symantec visionary awards, recognising

the way the Bank secures and manages systems and information.

• 2008: ICICI Bank wins the 'Excellence in Remittance Business 2007'

award by The Asian Banker

• 2008: Ms. Madhabi Puri Buch, ED, ICICI Bank wins FICCI's "Young

Women Achievers" Award

• 2008: Mr. K. V. Kamath, MD & CEO, ICICI Bank wins "The Asian

Banker Leadership Achievement Award" for the Asia Pacific and Gulf

Region 2007

• 2008: EuroWeek award for "Most Improved Market Profile"

• 2008: The award is designed to recognise the institution that has been most

successful in building its own niche in Asia's competitive syndicated loan

market

• 2008: The Asset Triple A Transaction Banking Awards, 2008

� Best Trade Finance Bank in India

� Best Transaction Bank in India

� Best Cash Management Bank in India

� Best Domestic Custodian in India

• 2008: Global Finance Award for Best "Trade Finance Bank and Provider"

in India

69

• 2008: ICICI Bank wins the Gold Shield for " Excellence in Financial

Reporting" by Institute of Chartered Accountant of India (ICAI) for the

Year ended March 31, 2007

• 2008: Mr. K. V. Kamath, MD & CEO, ICICI Bank awarded the "Padma

Bhushan"

• 2009: ICICI Bank bags the "Best bank in SME financing (Private Sector)"

at the Dun & Bradstreet Banking awards

• 2009 : ICICI Bank won 2009 Brandon Hall Excellence in Learning Award

• 2009 : In the Domestic Banking Awards of Finance Asia Country Awards

for Achievement, 2009 held at Hongkong, ICICI Bank won the 'Best

Foreign Exchange Bank, India' and 'Best Trade Finance Bank, India'

• 2009 : ICICI Bank Wins 'House of the Year' Award from Asia Risk

magazine, Honkong

• 2009 : For the third year in a row ICICI Bank has won The Asset Triple A

Country Awards for Best Domestic Bank in India

• 2009 : ICICI Bank won the Most Admired Knowledge Enterprises

(MAKE) India 2009 Award. ICICI Bank won the first place in

"Maximizing Enterprise Intellectual Capital" category, October 28, 2009

• 2009 : Ms Chanda Kochhar, MD and CEO was awarded with the Indian

Business Women Leadership Award at NDTV Profit Business Leadership

Awards , October 26, 2009.

• 2009 : ICICI Bank received two awards in CNBC Awaaz Consumer

Awards; one for the most preferred auto loan and the other for most

preferred credit Card, on September 30, 2009

• 2009 : Ms. Chanda Kochhar, Managing Director & CEO ranked in the top

20 of the World's 100 Most Powerful Women list compiled by Forbes,

August 2009

• 2009 : Financial Express at its FE India's Best Banks Awards, honoured

Mr. K.V. Kamath, Chairman with the Lifetime Achievement Award , July

25, 2009

• 2009 : ICICI Bank won Asset Triple A Investment Awards for the Best

Derivative House, India. In addition ICICI Bank were Highly commended

70

, Local Currency Structured product, India for 1.5 year ADR GDR linked

Range Accrual Note., July 2009

• 2009 : ICICI bank won in three categories at World finance Banking

awards on June 16, 2009

� Best NRI Services bank

� Excellence in Private Banking, APAC Region

� Excellence in Remittance Business

• 2009 : ICICI Bank Mobile Banking was adjudged "Best Bank Award for

Initiatives in Mobile Payments and Banking" by IDRBT, on May 18, 2009

in Hyderabad.

• 2009 : ICICI Bank's b2 branchfree banking was adjudged "Best E-Banking

Project Implementation Award 2008" by The Asian Banker, on May 11,

2009 at the China World Hotel in Beijing.

• 2009 : ICICI Bank bags the "Best bank in SME financing (Private Sector)"

at the Dun & Bradstreet Banking awards 2009.

• 2009 : ICICI Bank NRI services wins the "Excellence in Business Model

Innovation Award" in the eighth Asian Banker Excellence in Retail

Financial Services Awards Programme.

• 2009 : ICICI Bank's Rural Micro Banking and Agri-Business Group wins

WOW Event & Experiential Marketing Award in two categories - "Rural

Marketing programme of the year" and "Small Budget On Ground

Promotion of the Year". These awards were given for Cattle Loan

'Kamdhenu Campaign' and "Talkies on the move campaign' respectively.

• 2009 : ICICI Bank's Germany Branch has been certified by "Stiftung

Warrentest". ICICI Bank is ranked 2nd amongst 57 savings products

across 19 banks

• 2009 : ICICI Bank Germany won the yearly banking test of the investor

magazine €uro in the "call money"category.

• 2009 : The ICICI Bank was awarded the runner's up position in Gartner

Business Intelligence and Excellence Award for Asia Pacific for its

Business Intelligence functions.

• 2009 : ICICI Bank's Organisational Excellence Group was recently

awarded ISO 9001:2008 certification by TUV Nord. The scope of

71

certification comprised processes around consulting and capability

building on methods of quality & improvements.

• 2009 : ICICI Bank has been awarded the following titles under The Asset

Triple A Country Awards for 2009:

� Best Transaction Bank in India

� Best Trade Finance Bank in India

� Best Cash Management Bank in India

� Best Domestic Custodian in India

• 2009 : ICICI Bank has bagged the Best Cash Management Bank in India

award for the second year in a row. The other awards have been bagged

for the third year in a row.

• 2009 : ICICI Bank Canada received the prestigious Canadian Helen Keller

Award at the Canadian Helen Keller Centre's Fifth Annual Luncheon in

Toronto. The award was given to ICICI Bank its long-standing support to

this unique training centre for people who are deaf-blind.

• 2010 : Ms Chanda Kochhar, Managing Director & CEO, conferred the

Outstanding Woman Business Leader of the Year award by CNBC TV18

• 2010 : ICICI Bank awarded the most Tech-friendly Bank award by

Business World

• 2010 : Ms Chanda Kochhar featured in Business Today's list of 30 most

powerful women leaders for the 8th consecutive year

• 2010 : Ms. Chanda Kochhar, Managing Director & CEO, ranked 92nd in

Forbes list of the Most Powerful Women in the world

• 2010 : Ms.Chanda Kochhar, Managing Director & CEO was ranked 10th

in the International Fortune list of 50 most powerful women in business

• 2010 : ICICI Bank was voted as the Most Trusted Brand among private

sector banks in the 2010 Economic Times - Brand Equity Most Trusted

Brands Awards and ranked 7th in the list of Top 50 service brands

• 2010 : ICICI Bank received the 2010 World Finance UK award for:

� Excellence in Remittance Business, Worldwide

� Excellence in NRI Services, Worldwide

� Excellence in Private Banking Business, APAC Region

72

• 2010 : ICICI Bank UK, HiSAVE has been awarded 'Best Online Savings

Account Provider 2010 ' by Your Money ,direct consumer awards,UK

• 2010 : ICICI Bank UK, HiSAVE has been commended for 'Best Internet

Account Provider 2010' and 'Best Fixed Rate Account Provider 2010' by

Moneyfacts, an independent consumer finance leading aggregator

• 2010 : Ms.Chanda Kochhar, MD & CEO was awarded the Financial

Express Best Banker Award

• 2010 : For the sixth time in a row, ICICI Bank has received the Most

Preferred Auto Loan Brand in the Financials Services category at the

CNBC Consumer Awards

• 2010 : ICICI Bank has won Gold in the Readers Digest Trusted Brands

2010 Consumer award in the Finance category for a) Best Bank and b)

Best Credit Card Issuing Bank

• 2010 : ICICI Bank won the Best Trade Finance Bank and Best Foreign

Exchange Bank, India at the Finance Asia Country Awards for

Achievement, Hong Kong

• 2010 : ICICI Bank won the Best Local Bank by Trade and Forfaiting

Review, UK

• 2010 : ICICI Bank received the Best Trade Finance Bank in India by The

Asset Triple A Award, Hong Kong

• 2010 : ICICI Bank was awarded the Best Trade Finance Bank in South

Asia by GTR (Global Trade Review), UK

• 2010 : ICICI Bank amongst the top 3 to receive the FE- EVI Green

Business Leaders Award, in the banking industry

• 2010 : ICICI Bank wins the Asian Banker Award for Best Banking

Security System

• 2010 : ICICI Bank is the first and the only Indian brand to be ranked as the

45th most valuable global brand by BrandZ Top 100 Global Brands

Report.

• 2010 : ICICI Bank has been ranked 1st in the term money category, from a

list of 38 leading Banks by the German magazine, Euro. Since

commencement of business two years ago in the German market, this is

the 5th certification/award including 2 certifications from Stiftung

73

warrenttest (for Savings and Term Deposits) and three "Best Bank"

rankings by Euro magazine.

• 2010 : Forbes' 2000 most powerful listed companies' survey ranked ICICI

Bank 4th among the Indian companies and 282nd globally.

• 2010 : ICICI Bank was awarded The Asian Banker Achievement Award

2009 for Cash Management in India.

• 2010 : The Economic Times-Corporate Dossier Annual Survey of India

Inc's Most Powerful CEOs featured Ms Chanda Kochhar, MD and CEO,

as the most powerful women CEO in India. She was ranked 13th in the

overall power list.

• 2010 : ICICI Group Global Private Clients (GPC) has won the coveted

'Euromoney Private Banking Award 2010' for Best Bank in the Super-

Affluent Category (USD 500,000 to USD 1 million) - India. The other

categories in which GPC picked up awards were:

� Fixed Income Portfolio Management

� Lending/Financing Solutions

� Precious Metals Investment

� Private Equity Investment

� Specialized Services - Entrepreneurs

� FX/Rates Derivatives Supplier

• 2010 : ICICI Bank wins the Asian Banker Award for Excellence in SME

Banking 2009

• 2010 : ICICI Bank won the second prize in the Six Sigma Excellence

Awards, conducted by Indian Statistical institute, Bangalore for

"Improving Sales for TV Banking business"

• 2010 : Mr.N. Vaghul, Former Chairman, ICICI Bank was awarded the

"Padma Bhushan"

• 2011: ICICI Bank is the only Indian brand to figure in the BrandZ Top 100

Most Valuable Global Brands Report, second year in a row

• 2011: ICICI Bank ranked 5th in the list of "57 Indian Companies", and 288

th in World Rankings in Forbes Global 2000 list.

• 2011: ICICI Bank has won the "Banking Technology Awards 2010" at The

Indian Banks Association in the following categories

74

• 2011: ICICI Bank was recognized for its Special Citation of the Fully

Electronic Branch Service Channel, first set up at Hiranandani Estate,

Thane, at the Financial Insights Innovation Awards held in conjunction

with Asian Financial Services Congress

• 2011: For the second year in a row, ICICI Bank was ranked 70th in the

Bran directory league tables of the worlds most valuable brands by, The

Brand Finance® Banking 500

• 2011: ICICI Bank was ranked 1st in the Banking and Finance category and

9th in the "2010 Best Companies To Work For" by Business Today

• 2011: ICICI Bank UK, HiSAVE product range has been awarded the

Consumer Money facts Awards 2011 for the 'Best Online Savings Provider

• 2011: For the second consecutive year, ICICI Bank was ranked second in

the "India's 50 Biggest Financial Companies", in The BW REAL 500 by

Business World

• 2011: ICICI Bank was one of the winners in the Global Awards for

Enterprise & IT Architecture Excellence. ICICI Bank bagged the award in

the ‘Business Intelligence and Analytics' category.

• 2011: The Brand Trust Report ranks ICICI among the top 4 most trusted

financial institutions.

• 2011: ICICI Bank awarded "House Of The Year (India)", by Asia Risk

magazine, for eighth time in a row since 2004

• 2011: ICICI Bank awarded the most Tech-friendly Bank award by

Business World

• 2011: ICICI Bank received the Best Trade Finance Bank in India by The

Asset Triple A Award, Hong Kong

• 2011: ICICI Bank is the first and the only Indian brand to be ranked as the

45th most valuable global brand by BrandZ Top 100 Global Brands Report

• 2012 : ICICI Bank received the Golden Peacock Innovative Product /

Service Award for its Tab Banking project. The Golden Peacock Awards

were instituted by the Institute of Directors and was headed by Justice P N

Bhagwati, Ex Chief Justice of India.

• 2012 : ICICI Bank received the "Dataquest Technology Innovation

Awards 2012" for Data center migration by Dataquest.

75

• 2012 : ICICI Bank was conferred the Best Performance Award for Self

Help Group (SHG) Bank Linkage Programme in NABARD's State Level

Awards announced by their Maharashtra Regional Office. The Bank

received the first prize for the year 2010-11 in the Private Sector Bank

category and 2nd runner up for the year 2011-12 in the Commercial Bank

category.

• 2012 : For the second consecutive year, ICICI Bank won the NPCI's NFS

Operational Excellence Awards in the MNC and Private Sector Banks

Category for its ATM network.

• 2012 : Mr.K.V.Kamath was awarded the "Hall Of Fame" by Outlook

Money for his long standing contribution in the financial services sector.

• 2012 : ICICI Bank won the Best Bank - India Award by The Banker.

• 2012 : Ms. Chanda Kochhar ranked 18th in the Fortune's list of '2012

Businesspersons of the Year'. The 50 global leaders is Fortune's annual

ranking of leaders who are "the best in business".

• 2012 : Ms. Chanda Kochhar tops the list of "50 Most Powerful Women in

Business" by Fortune India.

• 2012 : ICICI Bank tops the list of "Private sector and Foreign Banks" by

Brand Equity, Most Trusted Brands 2012. It ranks 15th in the "Top

Service 50 Brands".

• 2012 : For the third consecutive year, ICICI Bank ranked second in

"India's 50 Biggest Financial Companies" in The BW Real 500 by

Businessworld.

• 2012 : For the second year in a row, Ms. Chanda Kochhar, Managing

Director & CEO was ranked 5th in the International list of 50 Most

Powerful Women In Business by Fortune.

• 2012 : ICICI Bank tops the list of most fans in India and globally ranks

fifth amongst financial institutions on Facebook in the social media

engagement study conducted by Ketchum Sampark.

• 2012 : ICICI Bank in the Private Sector Bank category won the Best

Technology Bank Of The Year ,Best Financial Inclusion Initiative and

Best Use Of Technology In Training and e-Learning by Indian Bank's

Association (IBA) Technology Awards. The Bank also received the first

76

runner up for Best Online Bank, Best Customer Relationship Initiative and

Best Use Of Mobility Technology in Banking by IBA Technology Awards

.

• 2012 : ICICI Bank awarded the Best SME Bank for Treasury and Working

Capital (India) by The Asset Triple A.

• 2012 : ICICI Bank received the Best Trade Finance House and Best Cash

Management House by The Corporate Treasurer Alliance Country

Awards.

• 2012 : ICICI Bank awarded the Best Private Sector Bank in Global

Business Development, Rural Reach and SME financing categories by

Dun & Bradstreet - Polaris Financial Technology Banking Awards.

• 2012 : Ms. Chanda Kochhar, Managing Director and CEO, was ranked

59th in the World's 100 Most Powerful Women by Forbes magazine.

• 2012 : For the fifth year in a row, ICICI Bank was awarded the "Best

Foreign Exchange Bank (India)" by Finance Asia Country Awards. The

Bank also received the "Best Bond House (India)".

• 2012 : Ms. Chanda Kochhar awarded the 3rd Asian Corporate Director

Recognition Award 2012 by Corporate Governance Asia.

• 2012 : ICICI Bank awarded the Best Trade Finance bank in India by GTR

Asia Leaders in Trade Awards 2012.

• 2012 : Ms. Chanda Kochhar, Managing Director & CEO, ranked 5th in the

list of "Most Powerful CEOs", in the corporate India's definitive power

listing, by The Economic Times Corporate Dossier. She also tops the list

of "Top Women CEOs", in the country.

• 2012 : ICICI Bank featured as the top Indian brand to be listed in the

annual BrandZ's Top 100 Most Valuable Global Brands study.

• 2012 : ICICI Bank won the "Best Bond House (India) 2011", by IFR Asia

• 2012 : ICICI Bank awarded the Best Bank (India) by Global Finance

• 2012 : ICICI Bank won the "Century International Quality Era Award" at

Geneva. The award recognizes commitment towards Quality, Excellence,

Customer Satisfaction, Leadership and Strategic Planning as established in

the QC 100 model of Total Quality Management (TQM).

77

• 2012 : For the second year in a row, Ms. Chanda Kochhar, Managing

Director & CEO, is in the Power List 2012 of 25 most influential women

professional in India, by India Today.

• 2012 : Ms. Chanda Kochhar, Managing Director & CEO, is amongst the

nine Indian women to be named in the Forbes magazine's inaugural 'Asia

Power Businesswomen list'

• 2012 : Mr. N.S.Kannan, Executive Director & CFO, received the "Best

CFO", in the Banking / Financial Services category by CNBC - TV 18.

• 2012 : ICICI Bank was recognised for the first Credit Default Swap (CDS)

deal in India at the Fimmda annual conference in Kuala Lumpur.

• 2012 : Ms. Chanda Kochhar, Managing Director & CEO was awarded the

"CNBC Asia India Business Leader Of The Year Award". She also

received the "CNBC Asia's CSR Award 2011"

• 2012: Airtel, ICICI among 'top 100 global brands'

• 2012: ICICI Bank won the "Best Bond House (India) 2011", by IFR Asia

• 2012: ICICI Bank awarded the Best Bank (India) by Global Finance

• 2012: ICICI Bank won the "Century International Quality Era Award" at

Geneva

• 2012: ICICI Bank was awarded the "Best Foreign Exchange Bank (India)"

by Finance Asia Country Awards.

• 2013 : ICICI Bank has been adjudged winner at the Express IT Innovation

Award under the Large Enterprise category.

• 2013 : ICICI Bank wins awards under the categories of 'Most Innovative

Bank' and 'Most Innovative use of Multi-Channel Infrastructure' at the

Indian Bank's Association's BANCON Innovation Awards 2013.

• 2013 : ICICI Bank won the Asian Banking & Finance Retail Banking

Award 2013 for the Online Banking Initiative of the Year

• 2013 : ICICI Bank won an award under the Social Media category at the

InformationWeek EDGE Award

• 2013 : Ms. Chanda Kochhar, MD and CEO has been awarded as the Best

CEO - Private Sector category at the Forbes India Leadership Awards

2013

78

• 2013 : Ms. Chanda Kochhar, MD & CEO, has been named as the most

powerful woman in business in India for the third consecutive year in

Fortune's list of '50 Most Powerful Women In Business: The Global 50'.

She is also among the four most powerful women in business in the world,

according to the list.

• 2013 : ICICI Bank received the award for 'Best Private Sector Banker' by

the Sunday Standard Best Bankers Awards 2013.

• 2013 : ICICI Bank has been awarded the 'Best Banker - All round

expansion' by the Sunday Standard Best Bankers Awards 2013.

• 2013 : ICICI Bank won 'Best Banker - Efficiency & Profitability' by the

Sunday Standard Best Bankers Awards 2013.

• 2013 : Mr KV Kamath, Chairman, receives the "AIMA Managing India"

Award for "Outstanding Institution Builder"

• 2013 : Ms Chanda Kochhar, MD & CEO, receives the "AIMA JRD Tata

Corporate Leadership Award" 2012

• 2013 : ICICI Bank has won the Trade Finance Magazine Award for

Excellence 2013, under the category of 'Asia Pacific Awards : Best Trade

Bank in India'

• 2013 : ICICI Bank received the Asian Banking & Finance Wholesale

Banking Awards 2013 for the India Domestic Trade Finance Bank of the

Year

• 2013 : ICICI Bank Limited has been awarded as the Best Private Sector

Bank under the category Global Business Development for the Dun &

Bradstreet - Polaris Financial Technology Banking Awards 2013

• 2013 : ICICI Bank has been one of the recipients of the Corporate

Governance Asia Annual Recognition Awards 2013

• 2013 : Ms Chanda Kochhar, MD & CEO, is one of the recipients from

India, for the 4th Asian Corporate Director Recognition Awards 2013

• 2013 : ICICI Bank has won the Best Bank Award for Use of IT for

Business Innovation Among Large Banks from the Institute for

Development and Research in Banking Technology (IDRBT)

79

• 2013 : ICICI Bank has receieved the Special Award for Best IT Team

Among Private Sector Banks from the Institute for Development and

Research in Banking Technology (IDRBT)

• 2013 : ICICI Bank won the Special Award for Electronic Payment

Systems Among Large Banks from the Institute for Development and

Research in Banking Technology (IDRBT)

• 2013 : ICICI Bank received Special Award for Mobile Banking Among

Large Banks from the Institute for Development and Research in Banking

Technology (IDRBT)

• 2013 : ICICI Bank ranks 10th in Fortune India's list of 50 most admired

companies in India.

• 2013 : Ms. Chanda Kochhar, MD & CEO, has been ranked as the most

powerful business woman in India in the Forbes' list of 'The World's 100

Most Powerful Women 2013'

• 2013 : ICICI Bank Limited has been conferred the Best Remittance

Business award at The Asian Banker's International Excellence in Retail

Financial Services 2013 Awards ceremony.

• 2013 : ICICI Bank was honored with the Medici Innovation Hall of Fame

Award, instituted by The Medici Institute in collaboration with the Medici

Group, USA.

• 2013 : ICICI Bank and its IT partner Fundtech won The Asian Banker

Technology Implementation Award for the Convergence Banking project

from Asian Banker.

• 2013 : Ms Chanda Kochhar received the 'Transformation Leader Award'

by NDTV Profit Business Leadership Awards 2012.

• 2013 : For the second consecutive year, Mr. N.S.Kannan, Executive

Director & CFO, received the "Best Performing CFO", in the Banking /

Financial Services category by CNBC - TV 18.

• 2013 : For the third year in a row, Ms. Chanda Kochhar, Managing

Director & CEO, is in the Power List 2013 of 25 most powerful women in

India, by India Today.

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• 2013 : Ms. Chanda Kochhar is the only Indian to be featured in the Dow

Jones list of Most Influential Female Executives in the World of the last

decade. She is ranked 12th in the global list.

• 2013 : ICICI Bank awarded the Most Admired Infrastructure Debt

Financer and PPP Project of the Year: Yamuna Expressway Project, in the

5th KPMG Infrastructure Today Awards by ASAPP Media Information

Group, publishers of Infrastructure Today in association with KPMG

• 2013 : For the 4th consecutive year, ICICI Bank won the Celent Model

Bank for the next generation technology oriented banking solutions.

• 2013 : ICICI Bank was awarded a "Special IT Innovation Award" by

Lenovo - NASSCOM and CNBC-TV18.

• 2013 : ICICI Bank was the winner of "6th Loyalty Awards" for My

Savings Rewards.

• 2013 : ICICI Bank UK PLC's online savings product HiSAVE won the

"Highly Commended" (2nd rank) at the Consumer Moneyfacts Awards.

• 2013 : ICICI Bank received the "Gram Samvad",Service for Low

cost/Small budget marketing initiative Award by Rural Marketing

Association of India (RMAI).

• 2013 : Ms. Chanda Kochhar awarded the Businessperson Of The Year

2012 by Business India. She is the first woman recipient of this award in

31 years.

• 2013 : ICICI Bank won the Best domestic bank, India by The Asset Triple

A Country Awards.

• 2014 : Ms. Chanda Kochhar, MD and CEO received the 'Mumbai Women

Of The Decade' award by ASSOCHAM.

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Management Profile – AXIS Bank

Board of Directors :

• Chairman : Dr. Sanjiv Misra

Dr. Sanjiv Misra graduated in Economics from St.Stephen’s College,

Delhi. He has a Master’s degree in Economics from the Delhi School of

Economics, a Master’s degree in Public Administration from the Harvard

Kennedy School, USA and a Ph.D from the Jawaharlal Nehru University,

New Delhi. At Harvard University, he was designated Lucius N. Littauer

Fellow of 1987 in recognition of exceptional academic strengths and

leadership qualities.

Dr. Misra was a member of the Indian Administrative Service for over 35

years during which period he held a wide range of key positions in the

Federal and state governments, including as Managing Director of the

Gujarat Industrial Development Corporation and stints at senior levels in

the Government of India in the Cabinet Office, the Ministry of Petroleum

and the Ministry of Finance. He was a Secretary in the Ministry of Finance

till his superannuation in 2008. Subsequently, he served as a Member of

the 13th Finance Commission, a constitutional position with the rank of a

Minister of State.

Till very recently Dr. Misra was a member of the Advisory Council of the

Asian Development Bank Institute, Tokyo. He was also a member of the

Committee on Fiscal Consolidation (Kelkar Committee) set up by the

Finance Minister in August 2012 to chart out a road map for fiscal

consolidation for the Indian economy.

Dr. Misra is currently a Public Interest Director and Chairman of the Audit

Committee of BSE Ltd. and an independent director on the Board of Akzo

Nobel India Ltd. He also serves as a member on several government

committees. He has a number of publications on policy issues to his credit.

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• Managing Director & Chief Executive Officer : Shikha Sharma

Ms. Shikha Sharma is the Managing Director & CEO of Axis Bank since

2009.Ms. Sharma began her career with the ICICI group where she has

worked across various verticals like Project Finance, Retail Banking and

Investment Banking. Her last assignment was as Managing Director &

CEO of ICICI Prudential Life Insurance Company, a leading private sector

life insurance company in the country.

Ms. Sharma has received wide recognition for her achievements. She is a

recipient of many business awards notably; ‘Transformational Business

Leader of the Year’ at AIMA’s Managing India Awards – 2012 and

‘Woman Leader of the year’ at Blooomberg-UTV Financial Leadership

Awards – 2012 and Businesworld’s Banker of the Year Award - 2012. She

has also been listed in prominent publications, such as Forbes List of

Asia’s 50 Power Business Women-2012, Indian Express Most Powerful

Indians – 2012 and India Today Power List of 25 Most Influential

Women- 2012.

• Director : K. N. Prithviraj

Mr. K. N. Prithviraj holds a Masters degree in Economics. At present, he is

the Administrator of the Specified Undertaking of the Unit Trust of India

(SUUTI). He has been the Chairman and Managing Director of Oriental

Bank of Commerce and Executive Director of United Bank of India. He

has also worked with Punjab National Bank in various capacities from

1969 to 2003.

• Director : V. R. Kaundinya

Mr. V. R. Kaundinya is a Graduate in Agriculture from AP Agricultural

University, Hyderabad. He also holds an MBA degree with specialization

in Agriculture from Indian Institute of Management, Ahmedabad.

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Mr. Kaundinya has worked extensively in the areas of productivity

enhancement of farmers and improvement of their profitability through the

use of high quality inputs. He has also worked on the development of seed

production areas, contract farming systems in the seed / crop production

areas in India and abroad. He was involved in a project that was aimed at

the elimination of child labour in cotton seed farmers’ fields in Andhra

Pradesh. Mr. Kaundinya was a member of the Dr. Swaminathan

Committee to develop the Biotech Policy in India. He held various

leadership positions in industry associations like the Indian Crop

Protection Association, Association of Seed Industry and Crop Biotech

Association. He has developed case studies and taught Agricultural

Marketing and Rural Developments classes at Indian Institute of

Management, Ahmedabad.

• Director : S. B. Mathur

Mr. S. B. Mathur is a Chartered Accountant by profession. He has also completed

ICWA (Part I & II) (London). He has been Chairman of the National Stock

Exchange of India Limited and continues to be a Director on its Board.

He was also the Chairman of Life Insurance Corporation of India at a time when

the insurance sector was opening up. Prior to taking charge as the Chairman, he

was the Executive Director handling Marketing and International Operations. He

has held various senior positions at LIC and attended various seminars at national

and international forums.

He was appointed by the Government of India as Administrator of the Specified

Undertaking of the Unit Trust of India from December, 2004 and held the position

up to November, 2007. He has also been nominated as a Director on the boards of

other reputed companies and is a Director at DCM Sriram Industries Ltd. since the

last two years.

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• Director : Prasad Menon

Mr. Prasad R. Menon is chemical engineer from the Indian Institute of

Technology, Kharagpur. He has over 40 years of diverse experience in

some of the premier multinational and Indian companies in the chemical

and power industry.

In October 2000, Mr. Menon took over as the Managing Director of Tata

Chemicals and led the company to become the largest inorganic chemicals

company in India. In the following six years, he successfully completed

the acquisition and integration of Bruner Mond (U.K.), Magadi Soda

(Kenya) and IMACID (Morocco) resulting in Tata Chemicals becoming

the second largest soda ash manufacturer in the world. In October 2006,

Mr. Menon took over as the Managing Director of Tata Power, the largest

integrated private power utility in India. He has championed sustainability

as a key strategic initiative in the organization.

Mr. Menon is on the Board of several major Tata Group companies, as

well as on the Supervisory Board of Sanmar Group in Chennai. He is on

the Steering Committee of Combat Climate Change, a group of 66 global

companies committed to policy change and implementation of climate

change initiatives. He is the first Chairperson of the Association of Power

Producers, an association of Private Power Generating companies, the

Chairperson of the Group Safety Committee and a member of other key

Tata Group Committees, viz. Climate Change, Business Excellence, etc.

• Director : Rabindranath Bhattacharyya

Mr. Rabindranath Bhattacharyya has a Masters degree in Economics from

Calcutta University and was a member of Indian Police Service. He has completed

36 years in Indian Police Services. He worked for 2 years as lecturer in West

Bengal Educational Services. He was a Nominee Director on the Board of

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Hindustan Aeronautics Limited, Bangalore from July, 2006 to July, 2009. He has

held the positions of Director – Insurance, Department of Economic Affairs,

Ministry of Finance from 1984 to1986; and Director, Department of Steel,

Ministry of Steel and Mines from 1981 to 1984. He also worked as a Government

Director on the Boards of Oriental Insurance Company, Delhi, United Insurance

Company, Chennai, New India Insurance Company, Mumbai from 1984-1986.

He was a member of the local Board of State Bank of India at Kolkata region from

June, 2010 to January 2011.

• Director : Prof . Samir K Barua

Prof. Samir Kumar Barua has a Master's degree in Technology from the Indian

Institute of Technology, Kanpur and a Doctorate in Management from the Indian

Institute of Management, Ahmedabad.

Prof. Barua has been a faculty member at the Indian Institute of Management,

Ahmedabad (IIMA), where he has also held various administrative positions.He is

currently, the Director of IIMA. He brings considerable expertise in financial

markets and risk management. He is an Independent Director on the Board of

Bharat Petroleum Corporation Limited, Securities Trading Corporation of India

Limited, Coal India Limited, Torrent Power Limited and IOT Infrastructure and

Energy Services Limited.

• Director : Som Mittal

Mr. Som Mittal is the President of NASSCOM, the premier trade body for the IT-

BPO Industry in India and is playing a key role to enable NASSCOM and the

industry to realise its strategic vision of ‘Transform Business and Transform

India.’

Mr. Mittal has more than 22 years of experience in IT industry and has handled

both domestic and international operations and is familiar with leveraging

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technology in corporations. He has worked with WIPRO for 5 years from 1989

to1994 as Chief Executive of their PC Server and Services Division. From 1994

to1999 was the MD of Digital Equipment India Ltd., a company engaged in

providing Technology Solutions to corporations including Banks and Financial

Institutions. From 1999 to 2006, he was the MD of Digital GlobalSoft (an HP

subsidiary); a software services company providing global solutions. From 2006

to 2007, he was Senior Vice President, Asia Pacific and Japan, at HP.

Having served as MD & CEO of listed companies, he is familiar with the

operations and governance structure relevant for such companies. Mr. Mittal has

also been appointed as the Chairman of the IT Strategy Committee of the Board of

Axis Bank.

• Director : Ireena Vittal

Ms. Ireena Vittal holds a Post Graduate Diploma in Business Management from

IIM, Calcutta and a BSc. Electronics from Osmania University. She has worked at

McKinsey & Co for 16 years, where she served global and local companies to

drive profitable growth. She has significant knowledge relating to agriculture and

urban development in India and emerging markets.

She has co-authored several seminal studies relating to agriculture and

urbanization including FAIDA, Bharat Nirman, Building Inclusive Indian Cities,

among others.

• Director : Rohit Bhagat

Mr. Rohit Bhagat was appointed as an Additional Independent Director with

effect from 16th January, 2013. Mr. Bhagat is a former Senior Managing Director

and Chairman of Asia Pacific, BlackRock Inc. and former member of its Global

Executive Committee. He has over 20 years of extensive global experience in

financial services industry having worked in India, Hong Kong and USA in

business leadership, consulting and advisory space.

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Mr. Bhagat has held several directorships with various entities of BlackRock.

Prior to BlackRock, he was the Global Chief Operating Officer for Barclays

Global Investors and has also worked as a Senior Partner & Co-Leader of the

United States Financial Services practice at Boston Consulting Group. Mr. Bhagat

has B. Tech Degree in Mechanical Engineering, M.S. in engineering from

University of Texas and has an MBA from Kellog Graduate School of

Management, Northwestern University.

• Executive Director ,Corporate Banking : V. Srinivasan

Mr. V. Srinivasan joined Axis Bank as the Executive Director - Corporate

Banking in 2009 and was elevated as a Director on the Board of Axis Bank in

October 2012. He has more than two decades of experience in the financial

services industry and has worked in the areas of Corporate Banking, Investment

Banking, Treasury and Foreign Exchange Management. Before joining Axis

Bank, Mr. Srinivasan was Managing Director and Head of Markets with J. P.

Morgan, India. He has served on various RBI Committees including the Technical

Advisory Committee, Committee for Repos and Committee for STRIPS. He has

also held the positions of Chairman, Fixed Income Money Market and Derivatives

Association of India (FIMMDA) and Chairman, Primary Dealers Association of

India (PDAI). Currently, he is a member of the CII National Committee on

Banking.

He holds an engineering degree from the College of Engineering, Anna

University, Chennai and is an MBA from the Indian Institute of Management,

Calcutta.

• Executive Director , Corporate Center : Somnath Sengupta

Mr. Somnath Sengupta, Executive Director - Corporate Center, was elevated as a

Director on the board of Axis Bank in October 2012. Mr. Sengupta joined the

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Bank in 1996 and has headed the Finance function since 2003. In 2009, he was

designated Executive Director & CFO.

A graduate in Economics from the Shri Ram College of Commerce, Delhi, he has

more than 31 years of banking experience ranging from Branch Banking, Foreign

Exchange and Treasury Operations and Finance. During his tenure as the CFO,

the Bank successfully raised capital from both the domestic and overseas market.

His achievements in the area of Finance have received industry wide recognition.

In 2010, Mr. Sengupta was given the Best Performing CFO award in the Banking

/ Financial Services Sector by CNBC TV-18 consecutively for the second time.

• Director : Smt. Usha Sangwan

Smt. Usha Sangwan has done her Masters in Economics, PGDM in HR

Management. She has worked in all core areas of Life Insurance, including

Marketing Operations, Personnel, HR, Housing Finance, International Operations,

Group Business and Corporate Communications. She has experience in LIC

Housing Finance for 3 years – 2 years as Regional Manager of North Zone and 1

year as General Manager, Corporate Office.

As General Manager, she was looking after Retail Finance, Project Finance,

Recoveries, Credit Appraisal and NPA Resolution. She also started a new

distribution channel i.e. Direct Marketing for LIC, which is no. 1 in business

volume in the industry .

• Executive Director , Retail Banking : R K Bammi

Mr. R. K. Bammi is the Executive Director - Retail Banking. He is responsible for

the retail businesses of the Bank including Distribution; Retail Liabilities and

Lending, Agriculture, Ruraland Inclusive Banking and Investment Products. Mr.

Bammi has held the positions of Zonal Head – North and President Distribution,

prior to his appointment as Executive Director - Retail Banking.

89

Mr. Bammi is a post graduate from Delhi School of Economics and a Certified

Associate from the Indian Institute of Bankers. He has over 30 years of banking

experience covering the areas of Retail Banking and Distribution; Branch Banking

and Corporate Banking. He joined Axis Bank in 1994, prior to which he was with

the State Bank group for over a decade.

Management Profile – ICICI Bank

Board of Directors :

• Chairman : Mr. K. V. Kamath :

Mr. K. Vaman Kamath is the non-executive Chairman of the Board of Directors of

ICICI Bank. He has a degree in mechanical engineering and did his management

studies at the Indian Institute of Management, Ahmedabad.

Mr. Kamath started his career in 1971 at ICICI, an Indian financial institution that

founded ICICI Bank and merged with it in 2002. In 1988, he moved to the Asian

Development Bank and spent several years in South-East Asia before returning to

ICICI as its Managing Director & CEO in 1996. Under his leadership, the ICICI

Group transformed itself into a diversified, technology-driven financial services group

that has leadership positions across banking, insurance and asset management in

India, and an international presence. He retired as Managing Director & CEO in April

2009, and took up his present position as non-executive Chairman.

Mr. Kamath joined the Board of Infosys in May 2009 and took over as Chairman of

the Board in August 2011. He stepped down as Chairman of the Board of Infosys and

took up the position of Lead Independent Director effective June 1, 2013.

Mr. Kamath was conferred with the Padma Bhushan, one of India's highest civilian

honours, in 2008. He has received widespread recognition internationally and in India,

including being named "Businessman of the Year" by Forbes Asia and "Business

Leader of the Year" by The Economic Times, India in 2007 and CNBC's "Asian

Business Leader of the Year" in 2001. Mr. Kamath was the President of the

Confederation of Indian Industry for the year 2008-09. He is also an independent

Director on the Board of Directors of Schlumberger Limited. He has been a co-chair

of the World Economic Forum's Annual Meeting in Davos.

90

• Director : Dr. Swati Piramal

Dr. Swati Piramal is the Director-Strategic Alliances and Communications at the

Piramal Group. She is a Director of Piramal Enterprises Limited. Dr. Piramal

completed her M.B.B.S. from the University of Mumbai, and holds a Masters Degree

in Public Health from Harvard School of Public Health. She was the first woman to be

elected President of The Associated Chambers of Commerce & Industry in India

(ASSOCHAM). She was conferred with the Padma Shri in April 2012. She is a

member of Harvard Board of Overseers as well as a member of the Global Advisory

Council of Harvard University .

• Director : Mr. Homi R. Khusrokhan

Mr. Homi R. Khusrokhan was first appointed on the Board of ICICI Bank Limited

effective January 21, 2010. He retired as the Managing Director of Tata Chemicals

Limited in 2008. He has over 40 years experience in the corporate sector. He has

earlier been the Managing Director of Tata Tea Limited and Glaxo India Limited. He

has experience and expertise in agriculture related businesses, international business

and mergers & acquisitions .

• Director : Mr. Dileep Choksi

Mr. Dileep Choksi is appointed as a Director of the Bank effective April 26, 2013.

Mr. Dileep Choksi is a qualified chartered accountant and has over 35 years of

professional experience. He was formerly the Joint Managing Partner of Deloitte in

India. In addition to tax and commercial law, his areas of practice have included the

audit & assurance functions. In the field of banking, he has held the positions of

director and member of advisory boards. He has dealt with multinational corporations

and leading national enterprises. He is presently a non-executive Director of three

subsidiary companies of ICICI Bank - ICICI Lombard General Insurance Company

Limited, ICICI Prudential Asset Management Company Limited and ICICI Home

Finance Company Limited .

91

• Director : Mr. Arvind Kumar

Mr. Arvind Kumar graduated in Economics from St. Stephens College, New Delhi in

1987 followed by a post-graduate diploma in management (PGDM) from the Indian

Institute of Management, Ahmedabad (IIMA) in 1989. He joined the Indian

Administrative Service (IAS) in 1991 and has worked in various capacities in the

State of Andhra Pradesh from 1991 till 2006 and 2008-2009. He took a years

sabbatical during 2006-07 to pursue Masters in Public Policy (MPP) with

specialization in Health and Health policy from Woodrow Wilson School (WWS),

Princeton University, USA, as a Robert McNamara scholar. Further, he is a

Chevening Gurukul scholar and undertook a course on Leadership and Excellence at

the London School of Economics and Political Science (LSE), UK in 2010. Since

2009 onwards, Mr. Kumar has been holding various portfolios at the Central line

Ministries in the Government of India (GoI). As Joint Secretary in the Ministry of

Finance, GoI, he is currently looking after Institutional Finance including housing

finance, MSME finance & Micro Finance. He also looks after RRBs, Agriculture

Credit and credit policy.

His experience, spanning over twenty years, is extremely rich, wide- ranging and

multi-sectoral, primarily in public policy and governance with focus on development

sectors. His work in 'arresting female feticide' and restoring sex ratio at birth is

extensively acknowledged.

In addition to ICICI Bank Ltd, Mr Kumar is a Government nominee Director also on

the Board of National Bank for Agriculture and Rural Development (NABARD), The

New India Assurance Company Limited (NIACL), Small Industries Development

Bank of India (SIDBI), IFCI Ltd and National Housing Bank (NHB). He is also in

charge Director of National Insurance Academy Pune.

• Director : Mr. M.S. Ramachandran

Mr. M. S. Ramachandran was first appointed on the Board of ICICI Bank Limited

effective April 25, 2009. Mr. M.S. Ramachandran holds a Bachelors degree in

Mechanical Engineering. He joined Indian Oil Corporation in 1969 and worked in

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several areas before being appointed as Executive Director, Oil Coordination

Committee set up by the Government of India in 1998. He joined the Board of Indian

Oil Corporation as Director (Planning & Business Development) in 2000. He was the

Chairman of Indian Oil Corporation from 2002 to 2005.

Mr. M.S. Ramachandran was conferred with Chemtech-Pharma Bio Hall of Fame

Award, 2005 for outstanding contribution to the petroleum and petrochemicals

industry .

• Director : Dr. Tushaar Shah

Dr. Tushaar Shah has been appointed on the Board of ICICI Bank Limited effective

May 3, 2010. Dr. Shah is a Senior Fellow of the Colombo-based International Water

Management Institute, and works out of Anand in Gujarat, western India. He is an

economist and public policy specialist and was formerly the Director of the Institute

of Rural Management at Anand in India. He has over 30 years of experience and has

done extensive research in water institutions and policies. He was honored with the

Outstanding Scientist award of the Consultative Group of International Agricultural

Research (CGIAR) in 2002. His most recent publication is "Taming the Anarchy:

Groundwater Governance in South Asia" published by the Resources for the Future

Press, Washington.

• Director : Mr. V. Sridar

Mr. V. Sridar was first appointed on the Board of ICICI Bank Limited effective

January 21, 2010. He retired as Chairman & Managing Director of UCO Bank in

2007. He has over 35 years of experience in the Indian banking sector. He started his

career with Union Bank of India. Prior to becoming Chairman & Managing Director

of UCO Bank, he was Chairman of the National Housing Bank .

Directors :

• Managing Director and Chief Executive Officer : Ms. Chanda Kochhar,

Ms. Chanda Kochhar is the Managing Director and Chief Executive Officer of ICICI

Bank Limited, India's second-largest bank and the largest in the private sector. She is

widely recognised for her role in shaping the retail banking sector in India and for her

93

leadership of the ICICI Group, as well as her contributions to various forums in India

and globally.

Ms. Kochhar began her career, with erstwhile ICICI Limited in 1984 and was

elevated to the Board of Directors of ICICI Bank in 2001. She was instrumental in

establishing ICICI Bank during the 1990s, and subsequently headed the infrastructure

finance and corporate banking business in ICICI Limited. In 2000, she took on the

challenge of building the nascent retail business, with strong focus on technology,

innovation, process reengineering and expansion of distribution and scale. The Bank

achieved a leadership position in this business. During 2006-2007, she successfully

led the Bank's corporate and international banking businesses during a period of

heightened activity and global expansion by Indian companies. From 2007 to 2009,

she was the Joint Managing Director & Chief Financial Officer during a critical

period of rapid change in the global financial landscape. She was elevated as

Managing Director & CEO of ICICI Bank in 2009 and is responsible for the Bank's

diverse operations in India and overseas. She also chairs the boards of the Bank's

principal subsidiaries, which include India's leading private sector life and general

insurance companies.

In addition to her responsibilities at the ICICI Group, Ms. Kochhar is a member of the

Prime Minister's Council on Trade & Industry, the Board of Trade, High-Level

Committee on Financing Infrastructure, US-India CEO Forum and UK-India CEO

Forum. She is a member of the boards of the Indian Council for Research on

International Economic Relations, National Institute of Securities Markets, Institute of

International Finance and International Monetary Conference. She was co-chair of the

World Economic Forum's Annual Meeting in 2011.

She was conferred with the Padma Bhushan, one of India's highest civilian honours,

in 2011.

94

• Executive Director : Mr. N. S. Kannan,

Mr. N.S. Kannan is the Executive Director of ICICI Bank. His responsibilities include

Finance, Treasury, Commercial Banking, Corporate Legal, Risk Management,

Secretarial, Corporate Communications and Corporate Branding. He also has the

responsibility for day to day administration of the Compliance and Internal Audit

functions. Prior to his current assignment at ICICI Bank, Mr. Kannan was the

Executive Director of ICICI Prudential Life Insurance Company. Earlier, Mr. Kannan

was the Chief Financial Officer and Treasurer of ICICI Bank.

Mr. Kannan has been with the ICICI group for about 22 years. He joined the group as

a project officer. During his tenure at the ICICI group he has also handled project

finance operations, infrastructure financing, structured finance and treasury

operations.

Mr. Kannan is a postgraduate in management from the Indian Institute of

Management, Bangalore with a gold medal for best all-round performance. He is also

a Chartered Financial Analyst from the Institute of Chartered Financial Analysts of

India and an Honours graduate in Mechanical Engineering.

In 2013, Mr. Kannan was awarded the Best CFO in the Indian banking/financial

services sector at CNBC TV 18 CFO Awards for the second consecutive year in a row

.

• Executive Director : Mr. K. Ramkumar,

Mr. K. Ramkumar, Executive Director on the Board of ICICI Bank is responsible for

Human Resources, Customer Service & Operations.

Mr. Ramkumar has completed his Post Graduate Diploma in Personnel Management

from Madras School of Social Work in 1984 and BSc Chemistry in 1982. He has

joined the Board of Directors with effect from February 1, 2009.

Prior to joining ICICI Bank in 2001, Mr. Ramkumar has served companies such as

Hindustan Aeronautics, Brookebond Lipton India Limited (now Hindustan Unilever

Limited) and ICI India Ltd. His work in these companies has mainly been in the areas

of Human Resources Management and Manufacturing.

95

At ICICI Bank Mr. Ramkumar is responsible for Human Resource function,

Customer service, Managing Service Quality and Innovation, Leadership

Development, Succession Management, building a supply chain for the Bank's human

resources requirements and leveraging technology to innovate, sales & service for the

customers and care for the employees for the future are his passion. Institute for

Finance, Banking & Insurance and ICICI Manipal Academy for Banking & Insurance

were conceived and nurtured by him. The partnership Initiatives with SEBI - National

Institute for securities management and with NIIT - the NIIT University, were also

nurtured by him. He leads the service quality and the innovation drive for the Bank.

During the last 3 years his major mandate has been to drive the culture change in

ICICI and make the Khayaal Aapka and Saath Aapka promises come alive to the

customers and the employees respectively .

• Executive Director : Mr. Rajiv Sabharwal

Mr. Rajiv Sabharwal is the Executive Director on the board of ICICI Bank. He is

responsible for Retail Banking, Inclusive & Rural Banking and SME & mid-corporate

business. He is also the Non-executive Chairman of ICICI Home Finance Company

Limited.

Mr. Sabharwal has done his Mechanical Engineering from Indian Institute of

Technology Delhi and Management from Indian Institute of Management Lucknow.

He has over 18 years of experience in the Banking/Financial Services industry. He

joined ICICI Group in 1998 and has held leadership positions in credit policy,

collections, business analytics, mortgage finance, consumer loans, credit cards, rural

and microfinance lending and financial inclusion. His contribution in the growth of

mortgage and retail business is widely acknowledged in the industry circles and

within ICICI group. He also has considerable knowledge relating to the securities and

portfolio management business segments as he has been on the investment advisory

committee of ICICI Prudential Asset Management Company's Real Estate Portfolios

since 2007.

Prior to joining ICICI Group, Mr. Sabharwal has worked in the Consumer Durables

Marketing, Commercial Finance and Retail Finance businesses at Godrej, SRF

Finance and GE Capital. In January 2009 he joined Sequoia Capital, a leading

96

venture/growth capital company and worked as Operating Partner focusing on the

financial services sector. There he led new investment decisions as well as

represented Sequoia at the board in existing investments. He then rejoined ICICI

Bank Limited from April 2010.

97

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