Press Release
December 15, 1999
A landmark ".COM" venture in India between ICICI BANK
and SIFY for online distribution of retail banking products and services.
In a major development in the Internet world, ICICI Bank,
the banking subsidiary of ICICI Ltd. (NYSE: IC and IC.D) and Satyam Infoway
Ltd. (NASDAQ: SIFY) announced the setting up of a new ".COM" company for
on-line distribution of retail banking products and services on the Internet.
This landmark agreement marks the coming together of India's first Internet
Banking provider, ICICI Bank, and India's largest private ISP and mega-Portal,
Satyam Infoway, to create a unique partnership between a major Bank and
a mega-Portal. The marriage between banking and portals is expected to
be a win-win potent combination, which is expected to result in improved
customer orientation, lower distribution cost, long-term customer relationships
with ease of banking wherever and whenever the customer wants it and enhanced
profitability. The range of retail banking products to be distributed
through the portal would include savings accounts, current accounts, fixed
deposits, bill payments and other retail banking products that ICICI Bank
may offer through this on-line channel.
The surge in demand for e-commerce related services stems
from the rapid growth in Internet penetration in the country and a fundamental
change in the business paradigm. The two companies would therefore also
explore several opportunities to complement each other's strengths to
capitalise on the opportunities in e-commerce. This would include providing
a platform for trade facilitation and payments over the Internet using
innovative banking products of ICICI Bank. SIFY has a buyer to seller
ordering/selling website, SeekandSource.com, which is on-line except for
the payments that are still physical. ICICI Bank has developed an Internet
based 'business to business' payment module for purchasers and sellers
to effect payments online. A synergistic offering of these two products
would be made so that such customers/users can complete the entire transaction
and payments online.
The two companies would expect to co-operate wherever
feasible to extend the reach and channels for distribution of financial
products from ICICI Bank and Internet products from SIFY. ICICI Bank,
as a part of its "Click and Brick" strategic focus would set up ATMs at
the Satyam Access Points and Cyber Cafes, thereby increasing its reach
across the country. It would also offer Satyam Internet terminals at its
branches, enabling visitors to surf the Internet, thereby attracting new
customers to its branches.
The two companies shall examine further business opportunities,
which would effectively synergise the financial services strength of ICICI
Bank and its Affiliates and the technological expertise of Satyam Infoway
and its Affiliates. ICICI Bank and Satyam Infoway through this partnership,
will play a strategic role in providing revolutionary e-commerce solutions
in India.
The memorandum of understanding was signed today between
Mr. H.N Sinor, Managing Director & CEO of ICICI Bank and Mr. R. Ramraj,
Managing Director of Satyam Infoway.
ICICI is a diversified financial services company offering
a wide range of products and services to corporate and retail customers
in India. ICICI Bank, a subsidiary company has been the pioneer of Internet
banking in India. ICICI Bank has been gearing itself for the opportunities
that would be created from the e-Commerce revolution.
Satyam Infoway Ltd. is the leading integrated Internet
and e-commerce company operating in India. SatyamOnline, the most comprehensive
portal site of Indian origin is one of the key offerings from SIFY in
the business to consumer segment. Recently it entered into an agreement
to acquire IndiaWorld Communications Private Limited, which would result
in the integration of IndiaWorld's popular websites like samachar.com,
khel.com and khoj.com with SIFY's portals. The combined portal would be
the largest India related Internet portal.
For further investor queries:
Contact:
Mr. Mohan Shenoi
+91-22-6531414
shenoimn@icicibank.com
Except for the historical information contained in
this Press Release, statements in this Press Release which contain words
or phrases such as "will", "would", "aim", "will likely result", "believe",
"expect", "will continue", "anticipate", "estimate", "intend", "plan",
"seek to", "future", "objective", "goal", "project", "should", "will pursue"
and similar expressions or variations of such expressions may constitute
"forward-looking statements". These forward-looking statements involve
a number of risks, uncertainties and other factors that could cause actual
results to differ materially from those suggested by the forward-looking
statements. These risks and uncertainties include, but are not limited
to our ability to successfully implement our alliance with SIFY, the actual
growth in demand for Internet banking products, Year 2000 risks, our growth
and expansion, technological implementation of the alliance and technological
changes, cash flow projections, our exposure to market risks as well as
other risks detailed in the reports filed by ICICI Limited with the Securities
and Exchange Commission of the United States. ICICI undertakes no obligation
to update forward-looking statements to reflect events or circumstances
after the date thereof.