ICICI Bank 2006 Annual Report Download - page 33

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32
Business Overview
to over 2,200 ATMs. Our call centres have a total seating capacity of 4,397 sales and service workstations
across the country. Transaction volumes on internet and mobile banking have increased significantly. We
continue to leverage our multi-channel network for distribution of third party products like mutual funds,
Government of India relief bonds and insurance products as well as initial public offerings of equity.
Cross-selling new products and also the products of our life and general insurance subsidiaries to our
existing customers is a key focus area for the Bank. Cross-sell allows us to deepen our relationship with
our existing customers and helps us reduce origination costs as well as earn fee income. Our branches
and other online channels are increasingly becoming important points of sale for our insurance subsidiaries.
In fiscal 2006, about 21% of ICICI Prudential’s new business was generated through ICICI Bank. We will
continue to focus on cross-sell as a means to improve profitability and offer a complete suite of products
to our customers.
Customer service is a key focus area for the Bank and we have adopted a multi-pronged approach to
continuously monitor and enhance customer service levels. The Customer Service Council comprising
wholetime directors and senior management meets regularly to review our customer service initiatives.
We have implemented a structured customer feedback process where feedback is received from customers
through e-mail, sms and phone. We conduct regular training programmes for employees to improve
customer handling and interaction and have incorporated customer service metrics in performance
evaluation. Our service quality team is also responsible for tracking resolution and turn-around times for
service requests, identifying root causes to be addressed through process improvements, rewarding
achievements in customer service and institutionalising learnings from customer feedback. The Board of
Directors periodically reviews the initiatives taken by the Bank in this area.
Small and medium enterprises
We have significantly enhanced our franchise in the small enterprises segment. Our strategy has focused
on customer convenience in transaction banking services, as well as working capital loans to suppliers or
dealers of large corporations, and clusters of small enterprises that have a homogeneous profile. During
fiscal 2006, we more than doubled our customer base, expanded our reach to 110 locations covering 480
branches of the Bank from where we service small and medium enterprises, increased the number of
products offered and clusters covered and achieved robust growth in business volumes. We partnered
with media organisations and a rating agency to organise the “Emerging India” awards to recognise the
achievements of small and medium enterprises. We strengthened our mindshare in the small and medium
enterprises sector through a weekly column in a leading financial daily newspaper focused on the SME
sector and through a magazine “Emerging Enterprises” for our SME clients jointly with another leading
financial daily newspaper which features relevant and contemporary issues relating to SMEs. During the
year, we also participated in the launch of a rating agency for SMEs. We are seeking to grow our SME
business model by creating a scalable business, developing a comprehensive product suite focused on
SMEs, strengthening our risk management models and supporting the SME eco-system by fulfiling their
requirements in a fast changing business environment.
Corporate Banking
Our corporate banking strategy is based on providing comprehensive and customized financial solutions
to our corporate customers. We offer a complete range of corporate banking products including rupee
and foreign currency debt, working capital credit, structured financing, syndication and transaction banking
products and services.
Our corporate banking group has a focused relationship with a large proportion of the top 500 large
corporates. Fiscal 2006 saw continuing demand for credit from the corporate sector, with growth and
additional investment demand in almost all sectors. We were able to leverage our international presence
and deep corporate relationships to work closely on important overseas acquisitions made by Indian
companies and some of the largest infrastructure projects in India. The above strategies enabled us to
achieve robust growth in our fee income in fiscal 2006.