ICICI Bank 2005 Annual Report Download - page 38

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Rural banking and agri-business
We have formulated a comprehensive strategy for rural and micro-banking and agri-business,
encompassing products and channels, with the twin objectives of meeting the needs of the rural economy
while building a sustainable business model. We offer a comprehensive suite of products, comprising six
primary credit products - micro-finance loans, farmer financing, working capital financing for agri-
enterprises, farm equipment financing, commodity-based financing and jewel loans, as well as savings,
investment and insurance products. Our channel strategy envisages multiple channels targeting specific
segments of the rural population. These include rural branches, branches at major agricultural markets,
credit franchisees, rural internet kiosks and micro-finance institution partnerships. We seek to achieve
deep penetration in identified areas through a combination of these channels. In fiscal 2005, over 2,000
internet kiosks were set up across 10 identified focus states. A wide spectrum of products have been sold
through the kiosks, including life and general insurance policies, loans and rural savings accounts. ICICI
Bank branches were established in nine of the largest agricultural markets in the country. In addition, 70
agri desks were established in locations with large agricultural markets. The total number of partner micro
finance institutions/ non-government organisations was scaled up to 45 (from 12 at March 31, 2004), with
the total client base going up to over 1 million households (from 350,000 at March 31, 2004). We have
adopted an integrated approach to agricultural financing by addressing the entire value chain from
production to consumption with a deep sectoral focus. We are exploring all business opportunities in the
integration of the value chain, including the creation of rural infrastructure like cold storage facilities and
warehouses.
International Banking
In 2001, we identified international banking as a key opportunity, aiming to cater to the cross-border needs
of clients and leverage our domestic banking strengths to offer products internationally. The Bank has
made significant progress in the international business since we set up our first overseas branch in
Singapore in 2003. ICICI Bank currently has subsidiaries in the United Kingdom, Russia and Canada,
branches in Singapore and Bahrain and representative offices in the United States, United Arab Emirates,
China, South Africa and Bangladesh. The Russian subsidiary was established through the acquisition of
Investitsionno-Kreditny Bank (IKB), a Russian bank with total assets of about US$ 4.4 million. The Bank is
awaiting regulatory approval from host country regulators to set up branches in Sri Lanka, the United
States and Hong Kong.
The Bank has established a strong franchise in the NRI business and further consolidated its position in
fiscal 2005. The Bank has established strong customer relationships by offering a comprehensive product
suite, technology-enabled access for overseas customers, a wide distribution network in India and
alliances with local banks in various markets. The Bank has over 400,000 NRI customers and has
substantially increased its market share in inward remittances into India. The Bank has built several
strategic alliances with banks like Wells Fargo in USA, Lloyds TSB in UK and DBS in Singapore. These
alliances have enabled us to provide greater value to our NRI customers by seamlessly catering to their
local and India-related banking needs. The Bank has undertaken significant brand-building initiatives in
international markets and has emerged among the most recognised financial services brands for NRIs. In
Canada, the Bank has grown beyond the NRI segment and is emerging as a recognised brand in the local
financial services segment.
Our overseas subsidiaries and branches launched several products during the financial year. ICICI Bank UK
became the first Indian bank in the UK to launch credit cards. ICICI Bank Canada offered a unique product
'Hello Canada' which was primarily targeted at immigrants to Canada and helps customers to set up their
banking services for Canada before immigration to the country. ICICI Bank also successfully launched a
Business Overview
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