“Success is not reaching the top, it is staying there.”
Difficult as it may seem, ICICI Bank has proven it. In its 67-year-long journey, it has reached great heights and continues to grow. Be it providing the best customer services or the extraordinary rewards it offers to its employees, the soaring share prices, or the increasing earnings per share it offers to its equity holders, ICICI Bank has been performing better than its best in all aspects.
How it all started?
● In 1955, ICICI was formed at the initiative of the World Bank, the Government of India, and Indian industry representatives with the chief objective of creating a development financial institution for giving medium and long-term project financing to Indian businesses.
● Until the late 1980s, ICICI primarily focused its activities on project finance, providing long-term funds to various industrial projects.
● Following the liberalization of the financial sector in India in the 1990s, ICICI shifted its operations from a development financial institution offering only project finance to a diversified financial services provider that, along with its subsidiaries and other group companies, offered varied products and services.
● As India’s economy became more market-oriented and integrated with the world economy, ICICI capitalized on the new opportunities to provide a more comprehensive range of financial products and services to a broader spectrum of clients.
● In October 2001, the BODs of ICICI and ICICI Bank approved the merger of ICICI and two of its wholly-owned retail finance subsidiaries, ICICI Personal Financial Services Limited and ICICI Capital Services Limited, with ICICI Bank. Following the merger, the ICICI group's financing, and banking operations, both wholesale and retail, were combined to form a single entity.
What are its achievements so far?
➢ ICICI Bank becomes the best performer in the banking sector as it delivered 80 per cent/42 per cent returns over FY21/FY22.
➢ Its market capitalization ranking within the Banking, financial services, and insurance (BFSI) space has improved to two from five in FY18.
➢ ICICI Bank reclaims the second slot after 7-8 years, overtaking Kotak Mahindra and HDFC Bank.
➢ It has a huge weightage in the biggest two indices, Nifty, Banknifty which are one of the most liquid instruments available.
➢ ICICI Bank has been declared as the 'Best Retail Bank in India' for the 9th year in a row at The Asian Banker Excellence in Retail Financial Services International Awards 2022. This year the Bank has also ranked 4th among banks in the Asia Pacific, Middle East, and Africa. ICICI Bank is the only Indian bank on the list of top 10 banks in this region.
➢ ICICI Bank has been adjudged ‘Company of the Year’ by Forbes India, a leading business magazine. The Bank has been chosen as the best company in 2021-22 based on its all-around performance.
How did it reach the top?
➢ The stability of the top management has helped improve its operational performance.
➢ Sandeep Bakhshi's appointment as CEO has brought stability which enabled value creation and drove re-rating as the bank delivered 31 percent Compound annual growth rate (CAGR) in m-cap since FY18-21 v/s 7 percent over FY10-18.
➢ It has reported strong progression in net interest margin security (NIMs), narrowing the gap with sector leaders.
➢ ICICI Bank has the best risk-to-reward ratio among all global banks.
➢ In the latest S&P Global Market Intelligence’s ranking of the Asia-Pacific’s largest bank, ICICI Bank has found a place in the league table with the rank of 50.
➢ ICICI Bank, emerged from the pandemic relatively unscathed, because of its superior underwriting before the crisis when it took fewer risks in the retail and SME segments.
➢ ICICI Bank overall seems to be a much safer investment compared to other banks, when compared with the largest PSU bank SBI which had shown very poor results even after government support, ICICI BANK time and again has proven itself to be one of the best investments in the banking sector over past years.
Did you know?
In 1999, ICICI became the first Indian company and the first bank or a financial institution from non-Japan Asia to be listed on the New York Stock Exchange.
BY:
Harshita Kaushik & Raina Gupta
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