ICICI Group- Overview

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The ICICI Group, one of India’s leading financial institutions, has played a big role in shaping the country’s economic growth. Starting in the mid-20th century, ICICI has shown strong commitment, vision, and effort to support the Indian economy and its people. But ICICI is not just about banking. Its history is rich with stories of growth, change, and adapting to the needs of its customers. 

In this blog, we will take a close look at ICICI’s journey through the years, its key milestones, the major companies under the ICICI umbrella, and the range of products and services it offers. If you want to understand how finance works in India, the story of ICICI Group is a great place to start. 

About ICICI Group

AttributeDetails
FounderInitiative of the World Bank, the Government of India and representatives of Indian industry
Industry TypeBanking and Financial services
Founded1955
HeadquartersMumbai, Maharashtra, India
Key PeopleSandeep Bakhshi, Managing Director & CEO

Overview of ICICI Group

The ICICI Group stands tall in India’s banking and financial services sector, tracing its roots back to the mid-20th century. It was originally established in 1955, an initiative from a collaboration between the World Bank, the Indian Government, and key representatives of India’s industry. The primary goal behind its inception was to develop a strong financial institution that could support Indian businesses by providing medium to long-term project financing.

For several decades, specifically until the late 1980s, the core focus of ICICI was on project finance. It dedicated itself to funding several industrial projects, thereby playing a vital role in strengthening the country’s industrial backbone. However, the 1990s brought a period of financial liberalisation in India, which was a crucial moment for institutions like ICICI. Adapting to the changing economic landscape, ICICI evolved from a singular project finance-oriented institution to a financial services provider. Not only did it diversify its offerings, but in collaboration with its subsidiaries and associated companies, it started delivering a wide range of products and services.

This era of liberalisation saw India gradually moving towards a more market-driven economy, further integrating with global markets. ICICI was quick to capitalise on the growing opportunities this presented. The organisation expanded its spectrum, reaching out to a broader clientele and catering to their variety of financial needs. In this context, 1994 was a turning point for the Group with the incorporation of ICICI Bank. This move further cemented its position in the banking sector.

Just five years later, in 1999, ICICI achieved yet another significant milestone. It became the first-ever Indian company, and notably, the first banking or financial institution from non-Japan Asia, to be listed on the prestigious New York Stock Exchange.

As the millennium began, the concept of universal banking was becoming a popular topic in India. The concept essentially revolved around the conversion of long-term lending institutions, like ICICI, into comprehensive commercial banks. Such a transformation promised several advantages. It would enable ICICI access to the world of low-cost demand deposits, broaden its product and service offerings, and create opportunities for non-fund-based income, such as banking commissions and fees.

After extensive discussions and considering the evolving trends in India’s banking sector, ICICI and ICICI Bank’s leadership determined that merging the two entities would be a good strategic move. This merger promised numerous advantages for both entities. ICICI Bank would gain from a significantly larger capital base, a wider operational scale, and an opportunity to tap into ICICI’s rich history and its vast network of corporate relationships.

This merger vision materialised in October 2001, receiving approvals not only from the boards of ICICI and ICICI Bank but also from their shareholders, the High Courts of Gujarat and Mumbai, and the Reserve Bank of India. This integration marked a defining moment in India’s banking history, consolidating ICICI Group’s financing and banking ventures, spanning both wholesale and retail sectors, under one unified entity.

ICICI Group History

1955: ICICI was established with support from the World Bank, the Indian government, and Indian industry leaders. It was built to finance long-term projects in India.

Late 1980s: Became a leader in project finance, funding numerous industrial projects across India.

Early 1990s: As India’s financial sector liberalised, ICICI transformed into a diverse financial services provider, offering a broad array of products and services.

1994: ICICI Bank was founded, expanding the group’s offerings.

1999: ICICI became the first Indian and non-Japan Asian bank to be listed on the New York Stock Exchange.

Late 1990s: Talks about universal banking began in India. This shift allowed institutions like ICICI to become full-scale commercial banks.

2001-2002: ICICI merged with ICICI Bank. This brought together wholesale and retail banking under one roof.

2007: Expanded internationally, opening branches in the UK, US, and Belgium.

2008: “Money2India” service launched in Canada. ICICI Bank UK also started a remittance service to India.

2010: Embraced a “Digital First” approach, launching mobile banking and other digital services.

2014-2015: Pioneered in digital payments, introducing touch-and-pay and contactless card services.

2016: Adopted blockchain technology for transactions.

2018: Implemented software robotics, handling over a million daily transactions.

2019: Focused on eco-friendly initiatives, launching green deposits and loans.

2020: Amidst COVID-19, introduced ‘ICICIStack’, a digital platform offering comprehensive banking services.

2022: In a reverse merger move, ICICI Bank absorbed ICICI along with its subsidiaries, ICICI Personal Financial Services Limited and ICICI Capital Services Limited.

Major Subsidiaries of ICICI Group

ICICI Bank Ltd

ICICI Bank Ltd stands as the cornerstone of the ICICI Group. With its substantial market cap and vast network, it’s one of the top private sector banks in India. Their services range from retail banking and corporate banking to treasury operations.

Also Read: ICICI Bank Q2 Results

ICICI Prudential Life Insurance Company Ltd

A joint initiative of ICICI Bank Limited and Prudential Corporation Holdings Limited, ICICI Prudential Life Insurance Company Limited started its journey in 2001. Notably, based on Retail Weighted Received Premium (RWRP), the company has consistently ranked among the leading life insurance companies in India. As of September 30, 2023, it boasts an Assets Under Management (AUM) of ₹ 2,719.03 billion. Their primary focus revolves around offering long-term savings and protection products tailored to suit varied life stage requirements.

Also Read: ICICI Prudential Life Insurance Q2 Results

ICICI Lombard General Insurance Company Ltd

Leading the pack in the private general insurance domain, ICICI Lombard offers a plethora of insurance products. Their product range includes motor, health, crop, fire, personal accident, marine, engineering, and liability insurance, to name a few. Their commitment to fulfilling promises is encapsulated in their brand philosophy, ‘Nibhaaye Vaade’. As of March 31, 2023, they have a Gross Written Premium (GWP) of ₹217.72 billion.

Also Read: ICICI Lombard Q2 Results

ICICI Securities Ltd

ICICI Securities Ltd holds a commanding presence in investment banking and brokerage. With its vast array of services, it assists individuals and corporations alike in their investment and financial decisions.

ICICI Prudential Asset Management Company

This subsidiary focuses on asset management, striving to offer innovative solutions and products to its wide customer base, thus enabling wealth growth.

ICICI Home Finance Company

Established under the vast ICICI umbrella, ICICI Home Finance Company Limited operates as a housing finance entity. Their primary offerings include a range of home loans, home improvement loans, and other related services, furthering ICICI’s commitment to making homeownership a reality for many.

ICICI Venture

ICICI Venture has a rich history dating back to 1988. It has seen significant evolution from its early days, transitioning from early-stage VC investments to late-stage ones and shifting its focus from proprietary capital-oriented funds to Third Party Capital oriented ones.

ICICI Securities Primary Dealership Ltd

ICICI Securities Primary Dealership Limited stands as a notable player in the fixed income and money markets in India. Their vast portfolio of interest-rate products and services and their dominant position in various segments, like government securities and swaps, place them at the forefront of the financial landscape.

Key Mergers and Collaborations by the ICICI Group

Joint Venture with Prudential plc

One of ICICI’s notable team-ups was with a company named Prudential plc. Together, they set up the ICICI Prudential Life Insurance Company Ltd. This partnership combined ICICI’s strong presence and understanding of India with Prudential’s international insurance knowledge. The goal was to offer life insurance, retirement plans, and other related products to people in India.

Acquisition of The Bank of Rajasthan Ltd 

In 2010, ICICI Bank made a move to take over The Bank of Rajasthan Ltd through a special kind of deal called a share swap. This helped ICICI grow its operations in northern India. With this move, ICICI added over 450 more branches, making its services available to even more customers in that area.

ICICI Venture’s Acquisition Strategies

ICICI Venture, a part of the ICICI Group, has been busy making its own business deals. These moves help the company catch new market opportunities and add more variety to its offerings. Through these steps, ICICI Venture has managed to oversee more funds, showing its dedication to grow and lead in the market.

Strategic Partnership with Fairfax Financial Holdings

Another key team-up was with Fairfax Financial Holdings. This resulted in the creation of the ICICI Lombard General Insurance Company Ltd. The idea was to enter the general insurance market, with products like health, vehicle, accident, and even crop insurance. This partnership used Fairfax’s global insurance know-how and ICICI’s understanding of the Indian market to give customers the best value.

International Expansions

ICICI has always aimed to be a big player in the global financial world. To do this, it made several smart deals and partnerships in different countries. The goal was to bring in more customers from these countries and provide them with ICICI’s wide range of services.

Products/Brands Under ICICI Group

ICICI Bank Savings Account

A flagship product of the ICICI Group, the ICICI Bank Savings Account is not just a typical savings account. It offers a perfect blend of liquidity, safety, and earnings. With attractive interest rates, a wide network of branches and ATMs, and cutting-edge digital banking solutions, customers enjoy a seamless banking experience. Furthermore, there are multiple types of savings accounts, tailored to the unique needs of different customers – from basic savings accounts to premium privilege accounts.

Also Read: ICICI Bank Share Price

ICICI Bank Credit Cards

Recognised among the top credit card providers in India, ICICI Bank offers an extensive range of credit cards to cater to various needs – be it shopping, travel, dining, or fuel. Every card comes packed with exclusive benefits, rewards, and offers. With robust security features and user-friendly online management, ICICI Bank ensures cardholders enjoy both convenience and safety.

ICICI Prudential Life Insurance Policies

ICICI Prudential Life Insurance offers a comprehensive suite of insurance solutions designed to provide financial protection and peace of mind. From term plans and ULIPs to retirement and child plans, there’s a policy for every life stage and need. The brand’s commitment to customer satisfaction is evident in its hassle-free claim process, diverse premium payment options, and constant innovation in product offerings.

ICICI Lombard Motor Insurance

Given the unpredictability on the roads, ICICI Lombard provides motor insurance that’s comprehensive, yet simple to understand. Whether it’s protection against natural calamities, man-made disasters, or third-party liabilities, their motor insurance policies have got you covered. Plus, with features like instant policy issuance and 24×7 customer support, it’s no wonder they’re a top choice for vehicle owners.

ICICI Securities Demat Account

In the world of stock trading and investments, the Demat Account by ICICI Securities stands out. It provides an easy and efficient way to hold and track shares and securities. With state-of-the-art technology, ICICI’s Demat account ensures secure and quick transactions, making it easier for both novice and seasoned investors to navigate the stock market.

ICICI Home Loans

Realising the dream of owning a home is made simpler with ICICI Home Loans. With competitive interest rates, flexible tenures, and a transparent application process, ICICI ensures that buying a home is a smooth journey for its customers. Whether you’re a first-time buyer or looking to upgrade, their range of home loan products caters to every housing need.

Conclusion

The ICICI Group is a key player in India’s financial world. Starting in the 1950s, it has grown and changed with the times. Today, it offers a wide range of services from banking to insurance. Through its many branches and online services, ICICI touches the lives of many Indians. Its rich history shows its dedication to the country’s growth. With its trusted name and deep roots, ICICI is set to continue serving India’s financial needs for many more years.

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