The Industrial Credit and Investment Corporation of India (ICICI) was a government institution established on 5 January 1955 and SirArcot Ramasamy Mudaliar was elected as the first Chairman of ICICI Ltd. It was structured as a joint-venture of theWorld Bank, India's public-sector banks and public-sector insurance companies to provide project financing to Indian industry.[19][20] ICICI Bank was established by ICICI, as a wholly owned subsidiary in 1994 inVadodara. The bank was founded as theIndustrial Credit and Investment Corporation of India Bank, before it changed its name to ICICI Bank. In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger of ICICI and two of itswholly-owned retail finance subsidiaries, ICICI Personal Financial Services Limited and ICICI Capital Services Limited, with ICICI Bank.[21] Themerger of parent ICICI Ltd. into its subsidiary ICICI Bank led toprivatization.
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 ofsubsidiaries andaffiliates like ICICI Bank. ICICI Bank launchedInternet Banking operations in 1998.[22]
ICICI's shareholding in ICICI Bank was reduced to 46% through a public offering of shares in India in 1998, followed by anequity offering in the form ofAmerican depositary receipts on theNYSE in 2000.[23] ICICI Bank acquired theBank of Madura Limited in an all-stock deal in 2001 and sold additional stakes to institutional investors during 2001–02.[24] In 1999, ICICI become the first Indian company and the first bank or a financial institution from non-Japan Asia to be listed on the NYSE.[25]
ICICI, ICICI Bank, and ICICI subsidiaries ICICI Personal Financial Services Limited and ICICI Capital Services Limited merged in areverse merger in 2002.[26] During thefinancial crisis of 2007–2008, customersrushed to ICICI ATMs and branches in some locations due to rumors ofbank failure. The Reserve Bank of India issued a clarification on the financial strength of ICICI Bank to dispel the rumours.[27]
In 2015, ICICI unveiled an outwardremittance platform called Money2World foronline outward remittance transactions for non-ICICI and ICICI customers.[28][29]In March 2020, the board of ICICI Bank Ltd. approved an investment of₹10 billion (US$120 million) inYes Bank, resulting in a 5% ownership interest in Yes.
1996: ICICI Ltd. A financial institution with headquarters in Mumbai[30]
1997: ITC Classic Finance. Incorporated in 1986, ITC Classic was a non-bank financial firm that engaged in hire, purchase and leasing operations. At the time of being acquired, ITC Classic had eight offices, 26 outlets and 700 brokers.[31]
1997: SCICI (Shipping Credit and Investment Corporation of India)[32]
1998: Anagram (ENAGRAM) Finance. Anagram had a network of some 50 branches in Gujarat, Rajasthan, and Maharashtra that were primarily engaged in the retail financing of cars and trucks. It also had some 250,000 depositors.[33]
2005: Investitsionno-Kreditny Bank (IKB), a Russian bank[36]
2007: Sangli Bank. Sangli Bank was a private sector unlisted bank, founded in 1916, and 30% owned by the Bahte family. Its headquarters were in Sangli inMaharashtra, and it had 198 branches. It had 158 inMaharashtra and 31 inKarnataka, and others inGujarat,Andhra Pradesh,Tamil Nadu,Goa, andDelhi. Its branches were relatively evenly split between metropolitan areas and rural or semi-urban areas.[37]
2010: TheBank of Rajasthan (BOR) was acquired by the ICICI Bank in 2010 for₹30 billion (US$350 million).Reserve Bank of India was critical of BOR's promoters not reducing their holdings in the company. BOR has since been merged with ICICI Bank.[30]
ICICI Bank has contributed to the setting up of a number of Indian institutions to establish financial infrastructure in the country over the years:
In 1992, India's leading financial institutions, including ICICI Ltd., promoted theNational Stock Exchange of India on behalf of theGovernment of India to establish a nationwide trading facility for equities, debt instruments, and hybrids, ensuring equal access to investors across the country through an appropriate communication network.[38]
ICICI Bank facilitated the setting up of "FINO Cross Link to Case Link Study" in 2006, as a company that would provide technology solutions and services to reach the underserved andunderbanked population of the country. Using technologies likesmart cards,biometrics and a basket of support services, FINO enables financial institutions to conceptualise, develop and operationalise projects to support sector initiatives inmicrofinance and livelihoods.[41]
Eastern Development Finance Corporation (NEDFI) was promoted by national-level financial institutions like ICICI Ltd in 1995 at Guwahati, Assam for the development of industries, infrastructure, animal husbandry, agri-horticulture plantation, medicinal plants, sericulture, aquaculture, poultry and dairy in the North Eastern states of India.[43]
Following the enactment of theSecuritisation Act in 2002, ICICI Bank, together with other institutions, set up Asset Reconstruction Company India Limited (ARCIL) in 2003. ARCIL was established to acquire non-performing assets (NPAs) from financial institutions and banks with a view to enhance the management of these assets and help in the maximisation of recovery.[44][45]
ICICI Bank helped establish India's first national credit bureau,Credit Information Bureau of India Limited (CIBIL), in 2000. CIBIL provides credit information reports to its members, containing the credit history of both commercial and consumer borrowers.[46]
ICICI Bank offers products and services such as savings and current accounts,[47] trade and forex services, fixed and recurring deposits, business loans, home loans, personal loans, auto loans, and gold loans, NRI Banking services, remittances, card services, lockers, agri and rural services.[48] The digital platforms that ICICI Bank offers include iMobile Pay,[49] InstaBiz,[50] Digital Rupee App,[51] Retail Internet Banking, Corporate Internet Banking,[48] Money2India, Money2World,[52] a digital wallet named Pockets,[53] and a digital banking suite called ICICI Stack.[54]
ICICI Bank Canada is a wholly owned subsidiary of ICICI Bank, whose corporate office is located inToronto. Established in December 2003,[55] ICICI Bank Canada is a full-service direct bank with assets of about $6.5 billion as of 31 December 2019.[55] It is governed by Canada'sBank Act and operates under the supervision of theOffice of the Superintendent of Financial Institutions.[56] The bank has seven branches in Canada.[55]
In 2003, ICICI Bank Canada was established as aSchedule II (foreign-owned or -controlled) bank. It was incorporated in November and opened its head office and downtown Toronto branch in December.[55] In 2004 it launched anonline banking platform. In 2005, it launched its financial advisor services channel. In 2008, the bank relocated its corporate office to the Don Valley Business Park in Toronto. In 2010, it launched a mortgage broker service. In 2014, the bank launched a mobile banking app.
ICICI Bank UK PLC was incorporated in England and Wales on 11 February 2003, as a private company with the name ICICI Bank UK Ltd. It then became a public limited company on 30 October 2006.[61] Presently the Bank has seven branches[62] in the UK: one each inBirmingham,East Ham,Harrow,London,Manchester,Southall andWembley.
ICICI Bank UK PLC offers products and services such as a current account, savings account,remittance to India,safe deposit box,NRI Services, business banking, foreign exchange services, commercial real estate and corporate banking.[63] In 2019, ICICI Bank UK PLC launched an instant account opening facility through its iMobile app.[64][65]
A few years after its rise to prominence in the banking sector, ICICI Bank faced allegations on the recovery methods it used against loan payment defaulters. A number of cases were filed against the bank and its employees for using "brutal measures" to recover the money. Most of the allegations were that the bank was using goons to recover the credit card payments and that these "recovery agents" exhibited inappropriately and in some cases, inhuman behaviour. Incidents were reported wherein the defaulters were put to "public shame" by the recovery agents
The bank also faced allegations of inappropriate behaviour in recovering its loans. These allegations started initially when the "recovery agents" and bank employees started threatening the defaulters. In some cases, notes were written by the bank's employees asking the defaulters to "sell everything in the house, including family members", were found. Such charges faced by the bank rose to a peak when suicide cases were reported, wherein the suicide notes spoke of the bank's recovery methods as the cause of the suicide. This led to legal battles and the bank paying huge compensation.[66][67]
ICICI Bank was one of the leading Indian banks accused of blatantmoney laundering through violation of RBI guidelines in the famous CobraPost[68] sting operation which shook up Indian banking industry during April–May 2013.[69]
On 14 March 2013 the online magazine Cobrapost released video footage fromOperation Red Spider showing high-ranking officials and some employees of ICICI Bank agreeing to convert black money into white, an act in violation ofPrevention of Money Laundering Act, 2002. TheGovernment of India andReserve Bank of India ordered an inquiry following theexposé. On 15 March 2013, ICICI Bank suspended 18 employees, pending inquiry.[70][71][72] On 11 April 2013 the Deputy Governor ofRBI,Harun Rashid Khan reportedly said that the central bank was initiating action against ICICI Bank in connection with allegations of money laundering.[73][74]
On 4 October 2018, the then MD &CEOChanda Kochhar stepped down from her position following allegations ofcorruption.[75] In January 2019, based on the report of an enquiry panel headed byJustice Srikrishna, the bank board officiallyterminated her from service. It also become one of the first in the country to ask for aclaw back of bonuses and benefits.[76] In 2020 theEnforcement Directorate provisionally seized assets and shares belonging to Chanda Kochhar with an estimated value of more than₹780 million (US$9.1 million), in relation to theICICI bank loan case.[77]
^"Monetary and Credit Information Review". Reserve Bank of India. 31 January 2024. Retrieved5 September 2024.Domestic Systemically Important Banks (D-SIBs) - The Reserve Bank on January 2, 2023 released the list of Domestic Systemically Important Banks (D-SIBs). State Bank of India, ICICI Bank, and HDFC Bank continue to be identified as D-SIBs, under the same bucketing structure as in the 2021 list of D-SIBs.
Parameswar, Nakul; Dhir, Swati; Dhir, Sanjay (16 December 2016). "Banking on Innovation, Innovation in Banking at ICICI Bank".Global Business and Organizational Excellence.36 (2):6–16.doi:10.1002/joe.21765.eISSN1932-2054.ISSN1932-2062.
₹236,037 crore (US$28 billion)[3] (2024)
