Bank Employees News: ICICI Bank

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Monday, 10 July 2017

BBB recommends 15 names for executive directors appointment in PSU banks

BBB recommends 15 names for executive directors appointment in PSU banks

The BBB recommendations of 15 names for executive directors post in PSU banks would be sent to the Department of Financial Services to get Appointments Committee of Cabinet clearance

New Delhi: Banks Board Bureau (BBB) has recommended to the government names of 15 general managers of various public sector banks for appointment as executive directors.Officials said the recommendations were made by BBB chairman Vinod Rai and other members of the bureau. The list would be sent to the Department of Financial Services to get Appointments Committee of Cabinet (ACC) clearance, officials said. The ACC is headed by Prime Minister Narendra Modi.The interview for appointment to the post of EDs was held on 30 June. Besides former CAG Rai as chairman, the other members of BBB include Anil Khandelwal, former chairman and managing director of Bank of Baroda; H.N. Sinor, former joint managing director of ICICI Bank; and Roopa Kudva, managing director of Omidyar Network India Advisors. RBI deputy governor, financial services secretary and department of public enterprises secretary, are ex-officio members.Recently, the government expanded the BBB by inducting two more members with the objective of strengthening the panel responsible for selection of MDs and directors of public sector banks and financial institutions. Former Allahabad Bank chairperson and managing director Shubhalaxmi Panse and private equity player Pradip Shah have been inducted into the board as independent members.The BBB, set up in April 2016, was originally tasked to recommend names for chiefs of public sector banks and financial institutions and help state-owned lenders in developing strategies and capital-raising plans. The Bureau was authorised to suggest to banks on developing a robust leadership succession plan through appropriate HR processes, including performance management systems.

Source:Livemint

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Friday, 17 March 2017

State Bank of India 07:37

ICICI Bank, SBI, StanChart top bank frauds list: RBI

ICICI Bank, SBI, StanChart top bank frauds list: RBI

ICICI Bank topped the list of banks that witnessed most number of frauds during April-December period of 2016 with state-owned SBI taking the second spot, RBI data said.

During the first nine months of the current fiscal, as many as 455 fraud cases involving Rs 1 lakh and above were detected in ICICI Bank, closely followed by SBI (429), Standard Chartered (244) and HDFC Bank (237).

The other banks which reported large number of frauds to the apex bank during the period include Axis Bank (189), Bank of Baroda (176) and Citibank (150).

However, in value terms, frauds involving Rs 2,236.81 crore were reported in SBI, followed by Punjab National Bank (Rs 2,250.34 crore) and Axis Bank (Rs 1,998.49 crore).

The data provided by RBI to the Finance Ministry also revealed the involvement of bank staffs in fraud cases.

In the case of SBI, 64 employees were involved in fraud cases, while it was 49 for HDFC Bank and 35 for Axis Bank.

In all, 450 employees were involved in fraud cases in different public and private sector banks during April-December 2016, in 3,870 cases involving a total value of Rs 17,750.27 crore.

Source:Business Today

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Saturday, 29 October 2016

Money 18:13

ICICI bank launches Money2India Europe scheme

ICICI bank launches Money2India Europe scheme

The British branch of ICICI Bank, ICICI Bank UK Plc. today announced the launch of online money transfer services to facilitate transaction from any bank accounts in Sweden, Norway and Denmark to any recipient account based in India. The service called ‘Money2India Europe’ verifies the credentials of the customers over video call from Money2India Europe website. The website is owned by ICICI Bank UK Plc. “Using this service, anyone residing in these countries can initiate money transfer round-the-clock for 365 days from their local bank account to any bank account in India in a quick and convenient manner,” ICICI Bank’s spokesperson said. “Money2India Europe service is now available in twenty countries in Europe”, he added. The service is completely online and can be completed within fifteen minutes.

It eliminates the need to courier the Know Your Customer (KYC) documents. ICICI Bank UK Plc. has partnered with Inpay A/S, a global payments service provider, to bring this service to consumers in Sweden, Norway and Denmark. “With NRIs being away from the country, digital channel becomes a very powerful tool for them to connect with India. With the expansion of Money2India Europe, we intend to comprehensively fulfill the money transfer needs of the NRI diaspora in Sweden, Norway and Denmark,” Vijay Chandok, Executive Director, ICICI Bank said.

Jacob Tackmann Thomsen, CEO and founder of Inpay A/S said, “Sweden, Denmark, and Norway are three of the most innovative markets in Europe, where digital payment innovation is ahead of the global developments. At Inpay we are very pleased to support one of the leading global banking brands and its proprietary remittance platform by providing bank account collections.” Euro (EUR), Swedish Krona (SEK), Norwegian Krone (NOK) and Danish Krone (DKK) are the currencies allowed for money transfer service by the Bank. Registered users can also track the status of their online transfers. It takes one working day for ICICI bank customers in Europe to transfer their money to any ICICI bank account in India and two working days to transfer their money in Europe to any other bank account in India.

Connectivity is one of the key requirements of the modern world. There are many Indians living and working abroad, who need to transfer money to their family’s bank accounts in India. Money2India Europe provides a fast, easy and accurate platform to do so. This site is relatively popular among users in the Germany.

It gets 49.2% of its traffic from Germany. This site is estimated to be worth €11927 and is ranked ahead of its competitors like Moneytransfer.ie, Exchange4free.com, Sendingmoneytoindia.com and Westernunionmoneytransfer.com. It is a promising and a highly useful venture by ICICI bank’s UK branch, launched in a continent where online money transfer technologies are ahead of global advancements.

Source:IndianCEO

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Saturday, 15 October 2016

kotak Mahindra Bank 07:50

Axis, Kotak Mahindra banks test blockchain transactions

Axis, Kotak Mahindra banks test blockchain transactions

With ICICI Bank having successfully executed its first two transactions using blockchain technology, other Indian private sector banks are also gradually warming up to the concept.

Two private sector lenders, Axis Bank Ltd and Kotak Mahindra Bank Ltd, are conducting pilot transactions. They are experimenting in various business segments, to establish whether there is a business model for blockchain in India.

“We are theoretically convinced that blockchain is the way ahead. But we have to establish a practical use of the technology. As of now, the focus is on whether the technology is scalable in the near future,” said Deepak Sharma, chief digital officer, Kotak Mahindra Bank.

According to Sharma, Kotak Mahindra Bank is currently conducting pilot transactions in cross-border remittances and trade settlements, using blockchain. The bank is also working with some international banks and a technology provider for these pilots, Sharma added.

“Typically, cross-border remittances take two days to settle. Using blockchain, we can reduce this time to a few minutes, which will save us a lot of time,” he said.

Axis Bank believes that it would successfully conduct full-fledged transactions, before it comes out with a product in the market. The bank is examining scenarios in businesses involving foreign exchange and in some other corporate banking operations, according to Amit Sethi, chief information officer.

“While we believe there might be some use of blockchain technology in the retail businesses, we think that it will first come out in the corporate banking operations. Cost and the speed of transactions will be key differentiators, but the efficiency and ease of conducting transactions will also matter,” Sethi said.

“We will come out with solutions for our customers soon, but we don’t want to commit to any time frame,” Sethi added.

HDFC Bank, India’s largest private sector bank by asset value, is still assessing the opportunity, a spokesperson said, without getting into details.

Blockchain is a decentralized ledger, which allows all stakeholders to receive instant information regarding the state of transactions across various stages. This typically comes in handy when tracking complex financial transactions where there are multiple points of entry and exit for the funds involved.

Currently, this information has to be sought manually from each person involved and there are high chances of duplication of data. Blockchain eliminates the need for such inquiries. Globally, multiple banks are trying to use this technology to see whether they have any use for it in their respective businesses.

The Reserve Bank of India (RBI) does not have any regulations about blockchain.

The pilot transaction at ICICI Bank was executed to showcase confirmation of import of shredded steel melting scrap by a Mumbai-based export-import firm from a Dubai-based supplier, the bank had said in a statement on Wednesday.

The second initiative involved a transaction on the blockchain application that enabled an ICICI Bank branch in Mumbai to remit funds to an Emirates NBD branch in Dubai in real time.

Source:BankingUpdates

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Sunday, 7 August 2016

non-cash Payments 22:29

ICICI Bank Eyes 30 Lakh Transactions Via E-Toll Plazas By March

ICICI Bank Eyes 30 Lakh Transactions Via E-Toll Plazas By March

New Delhi: ICICI Bank is aiming to facilitate 30 lakh transactions through its interoperable electronic toll collection facility on national highways by March 2017.

Electronic toll collection (ETC) enables vehicles to pay highway tolls electronically without stopping at toll plazas.

The country's largest private sector lender, also the first bank to have rolled out the facility, is also planning to issue 4 lakh tags to motorists to allow them a hassle-free passage through toll plazas on the national highways.

"ICICI Bank aims to issue 4 lakh ETC tags and record three million transactions by March 2017. A vehicle with the 'FASTag' can use the dedicated lanes on either side of the toll plaza to avoid long queues in the cash lanes of the toll plazas," its managing director and chief executive officer Chanda Kochhar said.

ETC tags enhance convenience for motorists to avoid congestion at toll booths as drivers don't have to stop and pay the fee, saving their time.

Keeping in view its benefits, this technology will play a crucial role in the growth of cashless payments in India, Ms Kochhar said.

Currently, there are 343 ICICI Bank enabled locations across major national highways that cover about 90 per cent of the tolled national highways network.

Till date, ICICI Bank has issued over 30,000 FASTags which are in use. It began the service first in the country on the Mumbai-Vadodara corridor of NH-8 in 2013.

For making an electronic payment at toll booths, a prepaid radio frequency identification device (RFID) tag known as FASTag is affixed on the windscreen of a vehicle.

As a vehicle crosses a toll plaza, the information written on the FASTag is captured by a reader installed at the toll plaza.

The information is then passed to the bank to debit the motorist's tag prepaid account created at the central clearing house set-up by the bank. Then the toll amount is deducted and transferred to the concessionaire's account electronically.

Customers can recharge their TAG account by making payment through various ways including net banking.

NHAI also offers 10 per cent cashback to the customers for payment of toll through FASTag.

"We are closely working with Road Transport & Highways Ministry, National Highway Authority of India (NHAI) and Indian Highways Management Company Ltd to cover more highways under ETC in the near future," Ms Kochhar said.

Facilitating more and more payment through electronic mode and thus move towards a less-cash society is the Reserve Bank of India's Vision-2018 agenda.

It is aimed at making payment systems in India safe, secure, authorised, efficient and accessible.

Source:NDTV

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Monday, 6 June 2016

paperless transactions 15:46

ICICI Bank plans to go paperless in green drive

ICICI Bank plans to go paperless in green drive

ICICI Bank plans to go paperless by putting a host of banking services on a digital platform to reduce its carbon footprint as part of its environmental sustainability drive.

"As a responsible bank, ICICI Bank always focused on all the societal stakeholders, including the environment. We have been endeavoring to go paperless by introducing an array of digital banking services which will help us to reduce the usage of paper," ICICI Bank Senior General Manager Saurabh Singh told PTI on the occasion of World Environment Day.

Tab banking, internet and mobile banking and contactless mobile payment solutions are among the efforts towards managing the environment alongside growth, he said.

"We have also aligned and upgraded our internal operations to minimise the usage of paper. We undertake image based processing at our central operations, the internal memos are all digitised; even our income tax proof submission happens electronically," Singh said.

The country's second largest lender in the last few years has focussed largely on reducing its carbon footprint by bringing in more efficient technologies and processes.

"We will continue to leverage on our strengths to build a more sustainable and self-sufficient ecosystem. In this regard, we would aim to go completely paperless as an organisation in our processes", he added.

In its goal towards environment conservation, he said ICICI Bank in the last few years has reduced its overall energy consumption by 15 per cent in 2015-16.

"To give you a perspective, this saved energy of 29 million units could power 24,000 urban households or 32,000 rural households for an entire year", Singh said.

Also, 15 of ICICI Bank's large offices and two data centres reduced carbon dioxide emission by 15,500 tonnes in last fiscal as compared with fiscal ended March 2013.

ICICI Bank said it reduced its paper consumption by one-third in 2015-16 compared to 2013-14.

This reduction in paper consumption is equivalent to saving around 13,770 trees. Thus, all the green initiatives of the bank have delivered positive results and will encourage us to push the envelope further, he added.

The official said the bank has consciously made efforts to adopt more efficient and eco-friendly initiatives and a big portion of this is driven by its employees.

Source:Business Today

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Friday, 6 May 2016

retail business 09:10

ICICI Bank will allocate more capital for retail biz: MD

ICICI Bank will allocate more capital for retail biz: MD

MUMBAI, MAY 3:

ICICI Bank, India’s second-largest lender, expects net interest margin for FY17 to be about 20 basis points lower than that of the March 2016 quarter level of 3.37 per cent.

The margin would be impacted as the bank is seeking to improve its credit mix driven by focus on retail lending and lending to higher-rated corporates, where yield on advances are typically lower. Further, provisions for bad loans are expected to remain elevated in FY17.

Net interest margin (NIM) is considered to be an important measure of efficiency in the financial sector. NIM is measured as the excess of interest income over interest expense divided by the average interest earning assets. Chanda Kochhar, MD and CEO, in a post results conference call with analysts, said her bank has worked out its capital allocation exercise and on that basis more capital will be allocated to retail business and less would be consumed by the corporate segment.

NS Kannan, Executive Director, observed that there are significant uncertainties around future trends and it is expected that non-performing asset (NPA) additions will continue to be at elevated levels in FY17.

Given the uncertainties around the corporate segment, and the ageing-based provisions on existing NPAs, provisions are expected to remain elevated in FY17, he explained.

Rakesh Jha, CFO, said the fact that pricing will be competitive on retail and corporate segments is also factored into the outlook for overall margins.

Source:TheHinduBusinessLine

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Wednesday, 4 May 2016

sebi 06:58

Mutual Funds: Industry paid more in salaries than aggregate profit earned in FY15

Mutual Funds: Industry paid more in salaries than aggregate profit earned in FY15

According to the data sourced from Association of Mutual Funds of India, the industry paid a total of Rs 1,832 crore in salaries for the year 2014-15 and it was 105 per cent of the total amount that the industry earned in profits during the year.

While salary disclosure of top executives by mutual funds on Monday revealed that some of them earned even more than salaries drawn by heads of leading corporate houses, a look into the overall employee expenses of fund houses shows that in the financial year ended March 2015, the industry paid more in salaries than the aggregate profit earned.

While the data on profitability and wage expense for the top five players shows that the employee cost stood at 56 per cent of the total profit earned by them, industry insiders say that the high wage to profit ratio for the industry is largely on account of the lower profitability and relatively higher salary payout by the smaller fund houses.

“The smaller fund houses either earn less profit or are making losses but they pay in line with the industry standards and that result into a higher wage to profit ratio for the industry as a whole,” said a senior official with a leading mutual fund.

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Monday, 2 May 2016

ICICI Bank 08:18

ICICI Bank top-brass foregoes performance bonus

ICICI Bank top-brass foregoes performance bonus

Leading private sector lender ICICI Bank, which has posted a sharp plunge in its fourth quarter net profit, has decided against grant of 'performance bonus' to its senior management team for the fiscal 2015-16.

"We have decided that the senior management would not receive performance bonus for FY2016. Performance bonus would however be paid to employees in the grades of Deputy General Manager and below," ICICI Bank's Managing Director and CEO Chanda Kochhar said in a post-results analyst call.

Kochhar herself was paid 'performance bonus' of over Rs 1.6 crore for the fiscal 2014-15, as per the bank's annual report for that year. Among others, Executive Director NS Kannan was paid a performance bonus of over Rs 1.1 crore.

The bank pays "performance linked retention pay (PLRP) to its front-line staff and junior management and performance bonus to its middle and senior management".

In its worst performance in over a decade, ICICI Bank on Friday posted 87 per cent plunge in consolidated net profit to Rs 406.71 crore for the March quarter on spike in provisioning for bad loans and creation of a contingency reserve to cushion any future loan defaults.

While provisioning for NPAs more than doubled to Rs 3,326 crore in view of the Reserve Bank's asset quality review (AQR) directive, the country's largest private sector lender has set aside a large amount of Rs 3,600 crore as reserves for any potential shocks in the future.

Stating that the bank has completed the exercise of review of classification of cases as per RBI's AQR directive, Kochhar told the analysts, "We continue to work towards resolution and reduction of exposures through sale of assets and deleveraging, as can be seen in some of the recently announced transactions.

"The weak global economic environment, sharp downturn in commodity cycle and the gradual nature of the domestic economic recovery has adversely impacted borrowers in certain sectors like iron and steel, mining, power, rigs and cement.

"While the banks are working towards resolution of stress on certain borrowers in these sectors, it may take some time for solutions to be worked out. In view of the above, the Bank has on a prudent basis made a collective contingency and related reserve of Rs 3,600 crore during fourth quarter towards exposures to these sectors."

She emphasised that this was "over and above" the provisions made for non-performing and restructured loans as per RBI guidelines.

Kochhar further said the bank has ended the year 2015-16 with "a very strong capital position, with Tier-1 capital adequacy of 13.09 per cent and total capital adequacy of 16.04 per cent, well above regulatory requirements".

In the analyst call, Kannan said the operating expenses rose by 10.3 per cent in the fiscal 2015-16, while employee expenses rose by 5.3 per cent.

During the fiscal, the bank added about 6,239 employees primarily in front-line roles in the retail and rural banking business. Non-employee expenses increased by 13.9 per cent in fiscal 2016 primarily on account of the larger distribution network and higher retail lending volumes, he added.

Source:BankingUpdates

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Wednesday, 20 April 2016

non performing assets 18:15

Morgan Stanley downgrades Bank of Baroda and ICICI Bank

Indian banks are unlikely to see a slowdown in bad debt formation this fiscal as they will continue to be impacted by a weak economy, a struggling corporate sector, and the Reserve Bank of India's intention to clean bank balance sheets, Morgan Stanley has said.

The US investment bank on Monday downgraded private sector ICICI Bank and public sector Bank of Baroda (BoB) to so-called equal weight because of expectations that these banks will have to provide more money to cover for non-performing assets (NPAs) in the current and next fiscal year.

Equal weight means investors should detest from accumulating these stocks, but may hold on to their existing investment.

"BoB has made good progress in cleaning its balance sheet, but we think profitability will take time to pick up," Morgan Stanley analysts Sumeet Khariwala and Subramanian Iyer said in a note on Monday .

Morgan Stanley said it prefers lenders with a high retail base, but among banks with a corporate focus Yes Bank and Axis Bank are better off because of a minimum impact from RBI's asset quality review (AQR), in which banks were directed to recognise some standard loans as bad.

"We agree FY16 level was high, causing many banks to become loss-making; we estimate the banks we cover reported 4.5% of loans as new NPLs (around `2 lakh crore). FY16 was tough, yet we don't expect FY17 to be close to a normalised year. We expect FY17 NPL formation to stay elevated at around 3% of loans as economy remains weak implying corporate profitability will stay weak," the Morgan Stanley note said.

Source:BankingUpdates

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Monday, 4 April 2016

State Bank of India 07:35

ICICI, SBI and other banks take the battle to mobile wallet players

ICICI, SBI and other banks take the battle to mobile wallet players

Banks are taking the battle to mobile wallet companies, armed with their readymade payment systems, wide merchant network and an on tap customer base, attempting to reclaim a turf which just a couple of years ago was their fiefdom.

In the past year, large lenders like ICICI Bank, State Bank of India, Axis Bank and HDFC Bank, which together control around 40 per cent of local banking assets, have launched new payment instruments as they seek to prevent customers from moving money to newly emerging non-bank companies.

SBI's Buddy, ICICI's Pockets, HDFC Bank's PayZapp and Axis' Lime are the new kids on the block, challenging the likes of Paytm, MobiKwik and Citrus Pay.

"It is an evolving space and the shift is towards digital transactions. None of us know the pace of the shift. Everyone is trying to experiment with the space," said Axis Bank Chief Executive Shikha Sharma.

While wallets have had to spend millions to get their branding done, banks are leveraging their existing brand value to lure customers away from wallet players. Tie-ups with new tech innovators are also keeping bank costs low.

"Investments in this business for us is in terms of deployment of resources as platform has been provided by our technology partner," said Manju Agarwal, deputy managing director, corporate strategy and new businesses, at SBI. Ease in small-value payments attracted the bank to this space, Agarwal added.

Parag Rao, head of cards and merchant acquiring at HDFC Bank, said he has been leveraging the bank's merchant and customer base to offer attractive discounts for PayZapp users.

"We want to facilitate all forms of transactions that the customer uses. In the physical world, the user can use the credit card and the debit card while in the mobile world he can use wallets," Rao said.'

HDFC Bank dominates card spending with a 3 lakh strong network of point of sale terminals. It is this offline success that it wants to replicate online.

However, wallet companies say banks cannot ensure enough attention to this business to make a difference. They point out to the fact that spending through debit and credit cards is still nascent despite an exponential increase in cards issued.

Reserve Bank of India data show that the number of outstanding debt and credit cards has increased more than three times in six years to 669.61 million in January 2016. However, people still prefer to pay in cash after withdrawing it from ATMs.

"Banks are excellent settlement engines, but when it comes to user experience, we have been able to train 123 million people over the last five years to make digital transactions without glitches. People trust us with their money," said Nitin Mishra, head of products at Paytm, India's largest wallet company.

Source:BankingUpdates

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Friday, 1 April 2016

State Bank of India 08:20

Commercial banks announce new lending rate structure

Commercial banks announce new lending rate structure

As a step to improve transmission of monetary policy, commercial banks announced marginal cost of funds-based lending rates (MCLR), a new regime which kicks in from April this year.

The overnight MCLR rate of seven large banks, including State Bank of India (SBI), ICICI Bank, HDFC Bank and Axis Bank, varied between 8.95 per cent (SBI) to 9.15 per cent (Punjab National Bank).

Bank of India did not provide MCLR rates. Its officials said the public sector lender will like to study rates quoted by competitors and finalise its rates today. Banks are not open for public transactions on the first day of the new financial year (FY17), starting today.

New home loans from SBI, the country’s largest lender, will be cheaper by 10 basis points (bps) under the revised loan pricing regime that begins from Friday.

Under MCLR regime, SBI’s benchmark rate would range between 8.95 per cent (overnight) to 9.35 per cent (for three years).

The Reserve Bank of India (RBI) had prescribed the new system for all banks, to improve transmission of monetary policy. Instead of one benchmark rate, banks would indicate at least five. Starting with one for overnight tenors, banks would quote rates for one month, three months, six months and one-year buckets. RBI has left it to banks for giving more rates for longer periods.

Anshula Kant, deputy managing director at SBI, said the MCLR rate for a one-year tenor will be 9.2 per cent. At present, their home loan rate is 9.55 per cent (base rate of 9.3 per cent plus 25 bps premium). Under the revised regime, it could be with MCLR for one year of 9.2 per cent plus 25 bps premium or 9.45 per cent for home loans sanctioned from Friday.

Existing home borrowers would get the option to move to the new rate. They will be charged a switch fee, to be announced soon. There would be a saving of ~600 in equated monthly instalment on a one-year loan, Kant said. This tenor (one year) will be most crucial for banks, as a little more than 30 per cent of deposits have a maturity of this much. The change in deposit rates for this bucket would drive revision in the MCLR rates.

Deposit rates are expected to slide further in FY17, depending on liquidity conditions. Asked about revision in these rates, Kant said they’d review these after RBI announces its policy review on April 5.

At present SBI’s term deposits range between 5.25 per cent at the short end to 7.5 per cent for 456 days to less than three years.

India Ratings and Research said the shortest tenor MCLR for bigger banks would be 90-100 bps lower than the base rate, making it comparable to commercial paper (CP) rates with similar tenor. On the longer end (one-year rate), considering the 70-75 bps of tenor premium in the market, the difference from the base rate could be 25-30 bps.

Implementation of MCLR has the potential to channelise the recent surge of volumes in the CP market towards bank credit. CP dues as a percentage of short-term bank credit went up to 14 per cent in FY16 (from 11 per cent last year) and three to five per cent of this, which is ~74,500 crore to ~1,20,000 crore, is likely to flow back into the banking system as rates get competitive.

Banks with a higher share of stable current and savings accounts will see less impact. Those with a relatively higher mix of domestic borrowing (in the form of longer tenor senior or subordinated debt) will be better positioned (in the current decreasing interest rate scenario). MCLR calculations would entail borrowing costs to be computed on an average basis.

Analysts said existing large corporate borrowers might be able to negotiate with banks to shift their loans to MCLR, putting downward pressure on margins. Aggressive refinancing of better rated companies by banks with lower MCLRs is likely and this could further dent the competitiveness of many mid-sized public sector banks.

The MCLR computation also factors in all operating costs, which will mean inefficient banks get penalised more. Additionally, MCLR provides flexibility for banks to re-price their floating rate book, compared to the base rate regime.

Bank yields and margins will be volatile in the new regime and a prudent asset-liability match will become more important in managing competitiveness through interest rate cycles, the rating agency added.

RBI recently said fixed rate loans up to three years would also be linked to MCLR. This could put further pressure on the net interest margin of banks, as it removes the possibility of using the fixed rate structure for working capital loans, which has been driving incremental corporate credit growth, it said.
Source:BankingUpdates

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Tuesday, 15 March 2016

POS Terminals 18:03

Mobile Payment Solutions :ICICI BANK

Mobile Payment Solutions :ICICI BANK

ICICI Bank unveils mobile payment solution to make payment from NFC enabled smartphones

MUMBAI: Private sector lender ICICI Bank on Tuesday unveiled a mobile payment solution to enable its credit and debit card customers make payments by just waving their smartphones at a near field communication (NFC)-enabled merchant terminal.

The mobile payment solution available in the bank's 'Pockets' app, provides improved convenience of 'Touch & Pay' as customers are no longer required to carry physical card or cash to pay in stores.

ICICI Bank will be using the Host Card Emulation (HCE) technology to create 'virtual' cards for 'physical' credit or debit cards (Visa/MasterCard) of the Bank, as selected by the customer.

The virtual card resides in the Bank's secure cloud server. Using the virtual cards, an ICICI Bank customer can initiate electronic payments from NFC enabled smartphones by just waving his/her phone near a contactless merchant terminal.

While the virtual card bears a different card number, the credit limit and expiry date remains same as the original physical card.

The customer's card details are stored virtually in the bank's secure cloud server and not on the customer's mobile phone. Additionally, the display of the card on the smartphone shows only last four digits of the virtual card. Thus, even if a customer loses the mobile phone, he will not lose any confidential information.

"As of now 40,000 terminals are ready to accept NFC payments and we are in the process of increasing this number. As per RBI laws the maximum amount of transactions is Rs 2,000 as of now. We as a bank want to open all the possible channels for interaction of a customer and reduce all forms of friction in the system of payments and this is part of that effort" said Rajiv Sabharwal, executive director, ICICI Bank.

Source:Economic Times

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Paytm 07:59

Paytm borrows Rs 300cr from ICICI Bank

Paytm borrows Rs 300cr from ICICI Bank

Online payments and commerce platform Paytm has taken a loan of close to Rs 300 crore from ICICI Bank in two tranches, a move that analysts say reflects the slowdown in venture capital (VC) investing.

Just last week, India's largest online marketplace Flipkart disclosed that it had secured a credit line of Rs 450 crore from HDFC Bank by pledging fixed deposits. In the last few months of 2015 too, Flipkart had pledged assets to access credit facilities worth Rs 1,400 crore from Kotak Mahindra Bank and Deutsche Bank.

When contacted, Paytm founder Vijay Shekhar Sharma told TOI, "This is a treasury management move for working capital. While adequate funds are there, it is advised by our finance teams to get these credit lines for working capital on the back of security such as FDs (fixed deposits), mutual funds, etc, in order to conserve cash."'

An email sent to ICICI Bank, the country's largest private sector lender, did not elicit a response till the time of going to press.

According to the latest documents filed by Paytm with the Registrar of Companies (RoC), the company has pledged cash assets as security with the bank. Last year, Paytm had taken a small loan of Rs 15 crore for working capital requirements from HDFC Bank which has been repaid by the Noida-based company, RoC documents show.

Paytm, which is backed by Chinese e-commerce major Alibaba, started as an online payments platform but later started its own commerce platform, where it competes with the likes of Flipkart, Snapdeal and Amazon. Though the payments business is operationally profitable, the commerce platform is burning cash. Paytm is now gearing up to launch a payments bank, which would require additional capital. The company is hoping to garner fresh equity funds for this.

Source:BankingUpdates

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subsidy 07:55

ICICI Bank launches credit-linked subsidy scheme under PMAY

ICICI Bank launches credit-linked subsidy scheme under PMAY

Country's largest private sector lender ICICI Bank launched a credit-linked subsidy scheme for home loans under Pradhan Mantri Awas Yojana ( PMAY).

Under this scheme, individuals including women borrowers from the economically weaker section and low income group will be able to acquire and construct the first brick-and-mortar house of the family by paying significantly lower equated monthly installments ( EMIs), ICICI Bank said in a statement.

ICICI Bank has signed an MoU with National Housing Bank ( NHB) to facilitate the credit-linked subsidy to eligible borrowers.

Under the scheme, an eligible customer will get a subsidy at 6.5 per cent per annum on a maximum amount of Rs 6 lakh or the loan amount, whichever is lower, for a maximum tenure of 15 years.

The subsidy is computed on the net present value method.

"ICICI Bank is committed to support Government's vision to provide housing for all by 2022. We believe that this scheme will empower a larger section of customers including women borrowers to realise the dream of owning their first home", ICICI Bank Executive Director Rajiv Sabharwal said.

The loan amount would be as per eligibility of customer and there is no maximum limit on the amount, it added.

The scheme is available to those without a brick-and- mortar (pucca) house, with families comprising husband, wife and unmarried children.

Source:BankingUpdates

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Wednesday, 9 March 2016

ICICI Bank 06:53

ICICI Bank to allow women employees to work from home for up to a year

ICICI Bank to allow women employees to work from home for up to a year

ICICI Bank Ltd is leaving no stone unturned for retaining its women. In its latest initiative, the bank said it will allow its 21,000 women to work from home for up to a year and even take their children and care-giver on business trips, in a move to retain talent.

The country’s largest private bank, which is headed by a woman, has about 70,000 employees, 30% of whom are women.

Two years ago, the bank conducted a survey among its women employees who left the bank and nearly two-thirds of those surveyed said they quit their job because of child care responsibilities, and long commutes, said the bank’s spokesperson.

Taking cognisance of this problem, it rolled out of its iWork@home initiative on a pilot basis a few weeks ago and while the programme will enable employees to work from home for up to a year initially, it can be further extended, said the bank.

However, some experts feel this initiative should have been rolled out to both men and women.

“It is not a great idea to make this available only to women. It reinforces the stereotype that it is women’s duty to take care of the child,” said Shachi Irde, executive director, Catalyst India WRC, a not-for-profit which works towards extending opportunities for women and businesses.

Moreover, she added, one does not always feels the need to work from home. “There are specific days and time when you need it,” she said.

Many companies this year increased the maternity leave option from three to six months, and also allowed work from home options, but few allowed a year.

The bank is giving women access to their required operating systems to help them work from home. This includes a facial recognition technology to ensure that no one can impersonate the employee and get access to its applications. The technology platform for this has been developed in-house by ICICI Bank in partnership with students from IIT, Delhi.

The news was first reported by The Times of India.

Announcing the launch of these initiatives in Mumbai on Monday, Chanda Kochhar, managing director and chief executive officer, ICICI Bank, said: ‘Although women form 48% of the population in our country, their representation in the workforce is much lower than men. Many women who join the workforce are sometimes forced to take a break or even leave their jobs, due to various life stage needs like maternity and child care.”

Lack of support system due to predominance of nuclear families, inadequate infrastructural facilities like crèches and long commute time further accentuates the problem, she said.

In addition to this, to support women managers, the bank felt that frequent travelling is a challenge for women with young children.

So it launched a policy meant for women managers with children up to three years of age. Here, the bank will provide them with the cost of travel and stay of the child and a care-giver (family member or child caretaker).

“Managerial responsibilities at times require them to travel outside city limits, for client interactions, business reviews or training. This will help our young managers to focus on their work without the emotional stress of staying away from their children,” said the bank in a release.

Irde believes that any flexi policy has to be made available to both men and women for it to be an inclusive workplace, else it only reinforces stereotypes.

Source:BankingUpdates

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Saturday, 20 February 2016

mobile app 17:49

ICICI Bank launches virtual mobile app development challenge

ICICI Bank launches virtual mobile app development challenge

ICICI Bank has launched a virtual mobile app development challenge, 'ICICI Appathon', to attract developers, technology companies, start-ups, technopreneurs and students to create the next generation of banking applications on mobile.

According to an official statement, the Appathon will be hosted on the IBM Bluemix cloud-based platform. It will offer over 50 APIs (Application Programme Interface) from ICICI Bank and its group companies namely ICICI Prudential Life Insurance, ICICI Lombard General Insurance and ICICI Securities. As a first, payment APIs from 'Visa' and the 'Unified Payment Interface' API from NPCI will also be available for the app development challenge. Visa and NPCI are the partners of the Appathon.

Using these APIs, participants will have to create innovative working prototypes of mobile applications that provide a superior customer experience.

The statement quoting Chanda Kochhar, MD & CEO, ICICI Bank said, “ICICI Appathon will allow us to foster innovation and tap into the minds of the most innovative developers. With India being among the top three Internet users in the world, mobile banking is witnessing an exponential growth. It is also bringing about a shift in consumer preference wherein they want innovative solutions on the go. Through the ICICI Appathon, we want to broad-base and leverage on the innovative ideas and the talent in our developers, technopreneurs and technology start-ups. We believe such programmes will encourage young developers to create world-class banking applications on mobile and will strengthen the Government's 'Digital India' mission. We hope to get ideas for some exceptional apps at the end of this development challenge.”

Freelance developers, technology enthusiasts working in companies, start-ups and students from the technology space can participate in the Appathon in the following way:

Registration: Participants can register on www.iciciappathon.com from February 16 to March 1, 2016. The names of the shortlisted candidates will be announced on March 4, 2016. They will be given access to the APIs hosted on the IBM Bluemix platform on March 5, 2016

Development: Participants will have to create minimum one innovative working prototype using the virtual banking and financial services APIs. These need to be submitted by March 27, 2016

Evaluation: Finalists will be announced on April 7, 2016. They will be invited to the ICICI Bank headquarters in Mumbai to compete in the Grand Finale in mid of April 2016

Three ICICI Appathon champions will be selected by a jury of eminent leaders from the BFSI segment and start-ups. All participants will be judged on five criteria, namely, uniqueness, functionality, business potential, user experience and scalability.

The top three winners will be given prizes from a pool of over Rs 20 lakh along with a potential engagement opportunity with ICICI Bank. They will also have the chance to be mentored by the event partners. Additionally, winners of the Appathon who apply to the '10,000 Startups' of Nasscom will get fast-tracked entry into it. Two members of the winning team will also have access to the network and co-working community of 91springboard (a co-working community of freelancers, start-ups and established small to large businesses) across India.

Technical queries on the ICICI Appathon can be directed to developer@iciciappathon.com. Candidates can also contact the support team on:+91-80-495-36-832

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Wednesday, 17 February 2016

ICICI Bank 09:20

ICICI Bank plans to raise up to Rs 50000 crore from bonds

ICICI Bank plans to raise up to Rs 50000 crore from bonds

Private sector ICICI Bank today said it plans to raise up to Rs 50,000 crore from bonds in tranches to fund affordable housing and infrastructure projects.

The bank intends to seek Committee of Executive Directors' (COED) approval to raise funds through issuance of long term bonds in the nature of debenture for lending to long term projects in infrastructure and affordable housing on a private placement basis, ICICI Bank said in a regulatory filing.

The proposal would be considered within a period of 10 days commencing from February 18, it added.

"The bank has taken the approval of shareholders at the Annual General Meeting held on June 29, 2015, for the Board/ Committee of the Board to borrow by way of securities including but not limited to bonds and non-convertible debentures up to Rs 50,000 crore on private placement basis," the company added.

For the third quarter ended December, 2015, ICICI Bank net profit rose 4 per cent to Rs 3,018 crore from Rs 2,889 crore in the same period of 2014-15.

Its total income on standalone basis during the quarter under review increased to Rs 17,562.95 crore from Rs 15,526.88 crore in the year-ago period.

As on December 31, the bank's gross non-performing assets (NPAs) rose to 4.72 per cent of gross advances as against 3.40 per cent in the same quarter of the previous fiscal.

Its net non-performing assets also surged to 2.28 per cent during the period under review.

Net non-performing assets as on December 31, 2015, were Rs 10,014 crore compared to Rs 6,828 crore at September 30, 2015, it said.

Provisioning for bad loans and contingencies rose sharply to Rs 2,844.05 crore in third quarter of the current fiscal compared to Rs 979.69 crore in the same period of the last fiscal

Source:BankingUpdates

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Wednesday, 20 January 2016

KY Principles 08:01

Product Crack: ICICI Bank Express Home Loans

Product Crack: ICICI Bank Express Home Loans

This service can be used by all salaried individuals even if they are not ICICI Bank customers.

ICICI Bank Ltd has launched an initiative for quick approval of home loans called Express Home Loans. The bank claims that the approval process can be completed within eight working hours. Customers can fill application forms and upload know-your-customer (KYC) and other documents online. The final loan approval will also be given online without the need to visit a branch. This service can be used by all salaried individuals even if they are not ICICI Bank customers.

How does it work?

You need to log on to www.icicibank.com/homeloanonline and fill in basic details such as the city in which the property you want to purchase is located, purpose of loan, property cost, your date of birth, and income details. You have the option to enter a co-applicant’s name as well. When you click on ‘Get Quote Now’, based on your income and other details, you will be given an ‘approved’ loan amount, a predetermined loan tenure (maximum tenure is determined by the bank) and a fixed and floating interest rate offer. Currently, the bank has waived off administrative fees and processing charges for all salaried customers who apply through the portal. On clicking ‘Apply Now’, you will be asked to give your name and mobile phone number.

Once you have submitted this information, you will have to fill up the home loan application form. The application is auto filled if you are an existing ICICI Bank customer. The application form includes details such as your current home address, office address, email, and number of dependants. Once you submit the application form, an application reference number is generated and a provision is given for uploading documents, which is optional. The documents that need to be uploaded include signature verification document, your photograph, address proof, ID proof, income proof and bank statements. Once you hit submit, your home loan application will be processed and an e-approval will be given within eight working hours.

Mint Money take

ICICI Bank’s home loan portal is a good way of knowing your eligibility as regards the loan amount and tenure. However, it might not be the right way to apply for a loan, unless you already have a loan and know about the process. This is because even though a pre-approved sanction is given within eight hours, the actual sanction happens only after the verification of documents and your signature on the forms provided by the bank. So, the actual process would take 3-7 days.

The final sanction would depend on whether the project is approved by the bank. Also note that the bank will not change the loan amount, tenure or interest rate, once the e-approval is given. This means you cannot negotiate on these. Hence, it would be best to visit a bank branch to avail a home loan, especially if you are a first-time borrower, as this can be a complicated process and you need to know every detail, including how the interest rate is calculated, prepayment charges, repayment schedule and debit mandate. You should also shop across institutions to get the best possible deal on your loan.

Source:BankingUpdates

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Saturday, 9 January 2016

payment banks 07:37

ICICI Bank to partner FINO PayTech for payments bank

ICICI Bank to partner FINO PayTech for payments bank

ICICI Bank will partner FINO PayTech to foray into the payments bank space, a top official said on Thursday.

“We have tied up with ICICI Bank as a partner bank for our payments bank foray. That discussion is already closed. We are now working to identify the areas where we will work together for building up avenues,” Mr. Rishi Gupta, managing director and chief executive officer of FINO PayTech, told The Hindu.

ICICI Bank joins some of the leading lenders of the country which have partnered with payments banks that have received licence from the banking regulator. For example, State Bank of India and Kotak Mahindra Bank have picked up stake in the payments banks that will be floated by Reliance Industries and the Bharti Group, respectively.

The ICICI Group, with about 16 per cent stake in FINO Paytech, a business correspondent, is the largest domestic shareholder.

FINO Paytech has received ‘in principle’ licence from the Reserve Bank of India (RBI) to start a payment bank.

RBI regulations allow universal banks to invest up 30 per cent in payments bank.

“ICICI can increase stake if there is a requirement from us to increase the stake,” Mr. Gupta said when asked about whether the lender is looking to increase its stake.

RBI regulations also mandate 51 per cent of the equity of the payments bank should be with domestic entities, In FINO PayTech, about 70 per cent stake is with foreign entities.

Mr. Gupta said FINO would raise capital which will help bring down foreign shareholding. FINO is planning to raise about Rs.500 crore from private equity and other strategic investors.

Among foreign shareholders, Blackstone owns about 20 per cent in the company, while Intel Capital, Headland Capital Partners and World Bank's International Finance Corporation (IFC) hold 15 per cent each. The tie-up with ICICI Bank will help FINO to extend services which a payments bank is not allowed to offer. “ICICI Bank has a stake in FINO PayTech, the parent company of the payments bank. So, we already have an existing relationship. Now we are partnering with the bank for helping us to build some products and services that we cannot offer on our own,” Mr. Gupta said adding the lender will also offer its help to set up the bank.

“Technology is another area where ICICI Bank will support us,” he said.

Source:BankingUpdates

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