ICICI was sponsored by a mission from the World Bank for the purpose of developing small and medium industries in the private sector. It was incorporated in 1955 under the Indian Companies Act, 1956. Its issued capital has been subscribed by Indian banks, insurance companies and individuals and corporations of the United States, the British Eastern Exchange banks and other companies and the general public in India.
The major objective of the ICICI was to meet the needs of the industry for permanent and long term funds in the private sector. Its objectives include :
Objectives of ICICI
- To assist in the creation, expansion and modernisation of industrial entreprises in the private sector.
- To encourage and promote the participation of private capital, both internal and external in such enterprises and
- To encourage and promote private ownership of industrial investment and expansion of markets.
In pursuit of its objectives of promoting industrial development, ICICI provides financial assistance to enterprises in various forms such as :
- Long term and medium terms loans, both rupee loans and foreign currency loans.
- Participates in equity capital and debentures and underwrites new issues of shares and debentures.
- Apart from the above direct assistance, ICICI provides financial services such as deferred credit, leasing credit, instalment sale, asset credit and venture capital.
ICICI has set up a merchant Banking Division which is working very creditably. ICICI has set up ICICI securities and Finance Co. Ltd. (I-SEC) to offer services in areas relating to issue management and credit syndication services. ICICI has also set up ICICI Asset Management Co. Ltd. in June 1993 to operate the schemes of the ICICI Mutual Fund. Yet other subsidiaries called ICICI Investors Services Ltd. and ICICI Banking Corporation Ltd. have started operations.
ICICI has set up a Project Promotion Department in order to provide promotional services and assistance to individual projects on selective basis. It also participates in the coordinated efforts of the All India Financial Institutions, State Level Finance and Promotion agencies and nationalised banks in identifying and developing projects and entrepreneurs in backward regions, in preparing techno-economic surveys for backward States, conducting feasibility studies and implementing identified projects.
Of all the development financial institutions set up by the Indian Government after independence, ICICI has registered the most spectacular success.
Another pioneering event is the merger of ICICI with ICICI Bank in 2002 and the creation of the first universal bank in India.