The bank is pursuing a two-pronged distribution strategy for the mass
retail and local banking services. In a first-of-its-kind partnership
among UK banking groups, ICICI Bank will offer its Indian Banking
Service through selected branches of Lloyds TSB, the fifth largest bank
in the UK. Using this service, non-resident Indians and persons of
Indian origin will be able to transfer funds from their Lloyds current
account to an ICICI account in India.
This alliance with Lloyds provides the UK bank with increased service
capabilities in India, where it has no operational presence, and helps
ICICI to build relationships with the Indian community in the UK.
ICICI is competing for the $3bn annual remittance market to India by
offering increased transparency of fee structures and competitive
foreign exchange rates applied to remittances.
It is also hoping to carve out a niche in the UK banking market by
offering products and services focused on the Asian community.
Meanwhile, the bank, which launched its first office and branch in the
affluent area of Knightsbridge in London, is targeting three commercial
business areas. It is looking to offer commercial banking support for
small and medium corporates in the UK, trade finance in support of the
trade flow between the UK and India, which totals around $7bn, and
corporate finance and syndication.
In the 12 months in which it has had a presence in the UK, the bank has attracted more than $250m in trade transactions.
