Goood Mornninng Andhra Pradhesh

August 5, 2007

ICICI story

Check out this article (you will have to register) in which K.V.Kamath, CEO of ICICI, India talks about how it re-inventing itself from providing industrial loans to consumer credit. He talks about how they started implementing silicon valley’s 90 day rule. Also, he explains how usage of software and technology helped ICICI to gain market share.Below are some excerpts from Mr Kamath’s interview.

“We made it a rule: no project was to extend beyond 90 days.”

“we had about 100,000 banking customers in 2000; today we have close to 20 million. Six years ago, maybe 95 percent of all transactions took place in the branch and 5 percent at the ATM. Now branch transactions are down to 15 percent, ATMs have gone up to 48 percent, the Internet is 21 percent, and the call center is 5 percent. Instruments that go directly to the back office for processing, without hitting a branch, account for about 10 percent.” 

“..the cost of replacement software is only 10 percent of the original cost. So it costs me less to put in new software than to pay the maintenance contracts on my old software.”

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