Icici Arm To Launch Net Banking

Website Banking will be a reality in India soon, allowing a non-resident Indian holding a FCNR account to access his balances in a Mumbai branch sitting in New York. Come October and ICICI Banking Corporation Ltd introduces Internet banking.

We will be the first bank in India to offer Internet access to customers, P V Maiya, chairman of the bank said. This is however the first step toward cyberbanking, just like the California-based Security Bank.

The facility would provide any customer with a personal computer and an Internet connection to access his bank account for information. Once the project in collaboration with Infosys takes off, the bank will join less than 100 banks worldwide that offers Internet access to their customers.

However, customers would have to wait for some more time to operate their accounts through the net. We are examining the security and technological issues involved in the project, Maiya said.

Explaining the rationale behind the move, Maiya said, This would be a value-added service to our NRI investors, who can access their account any time they wish. He also cited the spurt in NRI deposits soon after ICICI Bank put up a web page on the net. The deposits have gone up to Rs 160 crore from Rs 30 crore, he added.

That is why the bank has decided to make application forms for its forthcoming issue available on the net. At a future date, investors will also be provided latest status of their application, allotment, etc.

In its effort to offer innovative products to the customers, the bank has also introduced quantum optima, its version of two-in-one account, a saving bank and fixed deposit rolled into one, at the Andheri branch on a trial basis.

It will be soon expanded to other branches depending on the results, Maiya said. The minimum deposit for the savings bank account will be pegged at Rs 5,000, and for fixed deposit at Rs 15,000. Meanwhile, Industrial Credit and Investment Corporation of India Ltd (ICICI) is divesting its 25 per cent stake in the ICICI Bank through a public issue of Rs 144.37 crore. The shares are priced at Rs 35, a premium of Rs 25, and will be open for subscription between 5-10 August, 1997.

Explaining the motive behind the issue, Maiya said, The proceeds of the issue will be utilised mainly to buy premises from our parent company, ICICI. ICICI Bank is currently occupying premises owned by ICICI, for instance, in Nariman Point in Mumbai and Coimbatore.

The bank has reached an agreement with the parent in this regard.

With the equity expansion the bank will have a enhanced capital adequacy ratio of 16.7 per cent, compared to the existing 13 per cent. The networth will also go up to Rs 240 crore.

The scrip will be listed in both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) in Mumbai, regional exchanges like Chennai, Calcutta, Delhi and Baroda.The facility would provide any customer with a PC and an Internet connection to access his bank account

P V Maiya