ICICI Bank 2015 Annual Report Download - page 78

76 Annual Report 2014-2015
ECONOMIC OUTLOOK
The key trends in the global economy during fiscal 2015 were an improvement in growth in the United States; subdued
growth in the Euro Area and Japan; a slowdown in emerging market economies, including China; divergent monetary
policies across economies; and a sharp decline in commodity prices, particularly crude oil. In India, the formation of
a stable government with a strong electoral mandate in May 2014 led to an improvement in market sentiment. There
was recovery in key economic parameters during the year. Economic growth improved, inflation moderated, the current
account deficit and exchange rates remained stable and interest rates came down during the year. The corporate investment
cycle continued to remain subdued; the focus remained on working towards cashflow generation from existing projects
and addressing profitability & liquidity challenges in the corporate and small & medium enterprises (SME) sectors. The
government has taken several steps to improve the operating environment and also announced several reforms. These
measures are expected to positively influence economic conditions going forward.
For a detailed discussion of economic developments in fiscal 2015, please refer “Management’s Discussion & Analysis”.
BUSINESS REVIEW
Retail Banking
The retail banking landscape is transforming rapidly with a steady stream of technology-driven innovations and changing
consumer preferences. ICICI Bank has been at the forefront in leveraging technology in banking, through the launch of
innovative products and solutions aimed at making banking more convenient to customers. The Bank has a multi-channel
delivery model in line with its strategy to be present where its customers are. The Bank offers customers the choice to
bank at the channel, time and place of their preference. The Bank also strives to anticipate the future needs of customers
and deliver those expectations through technology-based solutions. In fiscal 2015, the Bank scaled up its offerings across
various channels – branch, mobile, internet and social media.
The Bank expanded its network to 4,050 branches and 12,451 ATMs at March 31, 2015, the largest branch network among
private sector banks. Of these, 52% of the branches were in rural and semi-urban areas. While expanding the branch network,
the Bank has focused on enhancing customer convenience through its automation strategy. The Bank is also the first in the
country to create a network of fully automated Touch Banking branches, available 24X7. At March 31, 2015, the Bank had 101
Touch Banking branches across 33 cities. The Bank has also deployed 1,000 self-service kiosks for accepting cash, where anyone
(even non-account holders) can deposit cash in an ICICI Bank account in a completely automated manner with the account
receiving instant credit instead of filling up a pay-in-slip and manually depositing cash at the teller counter. To avail this service,
users have to simply use their debit card and pin number or enter the account number at the kiosk. These self-service kiosks are
spread across 390 cities, with about 131 available at branches across India and over one-fourth being available round-the-clock.
The Bank introduced a range of innovative products and services in fiscal 2015 leveraging digital technology and mobile
communications. ‘Pockets’, India’s first digital bank was one of the major innovative offerings launched by the Bank.
Anyone, including those who are not the Bank’s existing customers can instantly download the e-wallet, fund it from
any domestic bank account and start transacting immediately. This is the only e-wallet which allows users to transact on
any website or mobile application in India. It allows users to instantly send/request money to/from any e-mail id, mobile
number, friends on Facebook and bank account. The users can also pay bills, recharge prepaid mobiles, book movie
tickets, order food, send physical & e-gifts and split & share expenses with friends by using this e-wallet. Users can choose
to add a savings account to the wallet, which will allow them to earn interest on their idle money.
Social media continues to play an ever-increasing role in our lives. In line with the Bank’s strategy of being present where
its customers are, the Bank launched banking services on Twitter in fiscal 2015 becoming the first bank in Asia to offer
customers the facility to transfer funds through a social media site. Through ‘icicibankpay’ on Twitter, customers can check
their account balance, view their last three transactions and recharge prepaid mobiles in a completely secure manner.
The Bank launched the country’s first ‘contactless’ debit and credit cards, enabling its customers to make electronic
payments by just waving the card close to the merchant terminal instead of dipping or swiping them. Based on the
Near Field Communication (NFC) technology, these cards provide customers the convenience of speed as they require
significantly less time than traditional cards to complete a transaction along with enhanced security as they remain in
the control of the customer. In the field of transit payments, the Bank tied up with metro rail operators in Delhi, Mumbai,
Business Overview