Project report on

COMPARATIVE STUDY OF PRIVATE AND PUBLIC BANK/ICICI& SBI

A Project Submitted to

University of Mumbai for partial completion of the degree of

Master in Commerce

Under the Faculty of Commerce

By

MEGHA RAVI NIRBHAVNE

Under the Guidance Of

PROF. SHARMILA KARVE

J.W.SADHUBELLA GIRLS COLLEGE

ULHASNAGAR-421001

ACADEMIC YEAR: 2018-19.

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 J.W.SADHUBELLA GIRLS COLLEGE

ULHASNAGAR-42100

Certificate

This is to certify that Ms. MEGHA RAVI NIRBHAVNE has worked and duly completed her
Project Work for the degree of Master in Commerce under the Faculty of Commerce in the
subject of Costing and her project is entitled, “COMPARATIVE STUDY OF PRIVATE
AND PUBLIC BANK/ICICI& SBI” under my supervision. I further certify that the entire
work has been done by the learner under my guidance and that no part of it has been submitted
previously for any Degree or Diploma of any University.

It is her own work and facts reported by her personal findings and investigations.

Name and Signature of

SHARMILA KARVE

Date of submission:

Signature of External Examiner

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 DECLARATION:

I the undersigned Miss MEGHA R. NIRBHAVANE hereby declare that the work embodied in
this project work titled “COMPARATTIVE STUDY OF PRIVATE AND PUBLIC
BANK/SBI &ICICI”, forms my own contribution to the research work carried out under the
guidance of SHARMILA KARVE I for any other Degree to this or any other University.

Wherever reference has been made to previous work of others, it has been clearly indicated as
such and included in the bibliography.
I, here by further declare that all information of this document has been obtained and presented
in accordance with academic rules and ethical conduct.

MEGHA R. NIRBHAVANE

Signature

Certified by
Prof. SHARMILA KARVE

Signature

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 Acknowledgment

To list who all have helped me is difficult because they are so numerous and the depth is so
enormous.

I would like to acknowledge the following as being idealistic channels and fresh dimensions in
the completion of this project.

I take this opportunity to thank the University of Mumbai for giving me chance to do this project.

I would like to thank my Principal, VASANT MALI for providing the necessary facilities
required for completion of this project.

I take this opportunity to thank our Coordinator Prof. SHARMILA KARVE for her moral
support and guidance.

I would also like to express my sincere gratitude toward my project guide Prof. SHARMILA
KARVE whose guidance and care made the project successful.

I would like to thank my College Library, for having provided various reference books and
magazines related to my project.

Lastly, I would like to thank each and every person who directly or indirectly helped me in the
completion of the project especially my Parents and Peers who supported me throughout my
project.

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 INDEX

Chapter Content Page No.

No.
1 INTRODUCTION 6
2 MEANING OF SBI AND ICICI 7 -15
3 LITERATURE REVIEW 16-18
4 RESEARCH METHODOLOGY 19
5 DATA ANALYSIS AND 20-71
INTERPRETATION
6 FINDINGS AND CONCLUSION 72-84

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 1.INTRODUCTION

The term ‘‘banking’’ can be applied to a large range of financial institutions, from savings
and loans organizations to the large money-centre commercial banks in the USA, or from
the smallest mutually owned building society to the ‘‘big four’’ shareholder owned banks

In the UK. Many European countries have large regional/cooperative banks in addition to
Three to five universal banks. In Japan, the bank with the largest retail network is Sumitomo
Mitsui Banking Corporation,2 but its main rival for savings deposits is the Post Office.
The objective of this chapter is to provide an overview of banking and the role played by
Banks in an increasingly complex financial world. It begins with a review of the meaning
Of banking, identifying the features of banks that distinguish them from other financial
institutions. The most common forms of organizational structure for banks in the developed
World are reviewed in section 1.3. Section 1.4 considers the relationship between the central
banks and commercial banks, including key debates on the functions and independence of a
Central bank.

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 2. THE MEANING OF BANKING:-
The banking industry plays an important role in economic development country .It supplies the
lifeblood-money that supports and fosters growth in all the industries. Growth of the banking
sector is measured by the increase in the number of banks’ branches, deposits, credit etc. In
analyzing the banking sector, it indicates the direction in the countrys economy is moving. India
has about 88 commercial banks including 31 private banks, sector banks, and 38foreign banks
and in total, 53,000 bank branches, and 17,000 ATMs are servicing the nation. Public sector
banks dominate the segment with75 per cent of the total assets of the industry held by them.
State Bank of India (SBI) and ICICI Bank are the two largest
banks in India in public and private sector.
The provision of deposit and loan products normally distinguishes banks from other types of
financial firms. Deposit products pay out money on demand or after some notice. Deposits are
liabilities for banks, which must be managed if the bank is to maximize profit. Likewise, they
manage the assets created by lending. Thus, the core activity is to act as intermediaries between
depositors and borrowers. Other financial institutions, such as stockbrokers, are also
intermediaries between buyers and sellers of shares, but it is the taking of deposits and the
granting of loans that singles out a bank, though many offer other financial services. To illustrate
the traditional intermediary function of a bank, consider Figure 1.1, a simple model of the
deposit and credit markets. On the vertical axis is the rate of interest.

2.1 INTRODUCTION SBI V/S ICICI

SBI v/s ICICI

SBI stands for State Bank of India. It is a public sector institution (government owned),
with a huge customer base all over India. It has seven associate banks operating under its SBI
name. It has over thirteen thousand branches across India and in some selected international
countries and a 56,000 ATM network across India. The Standard Bank of India „inherited‟ the
Bank of Calcutta, which was founded in 1806, and has been in existence for over two hundred
years

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 On the other hand, the ICICI is a private sector bank (privately owned), with a relatively
smaller clientele base. It is one of the major banks in India (precisely the second largest), but
much smaller than the SBI. It has 950 branches, with 3,500 branches across India. The bank has
deposits of Rs 1.65 lakh crore compared to SBI‟s Rs 3.8 lakh crore (accumulated in a period of
twelve years), racking up a net worth of Rs 22,000 against Rs 27,000 for the State Bank of India.
This represents Rs 9 crore business generated by each ICICI employee per year, compared to Rs
3 crore worth of business per employee of the ICICI.
While the State Bank pays 4.7 percent on deposits, and earns less on advances, the ICICI pays
0.7 less (4 percent), while earning more on advances, and thus earns 0.4 percent more on assets
than the SBI. This is no surprise, as there’s seemingly limitless access to funds from the
government for the state owned SBI.
On money transfers from overseas accounts, with the SBI, once a transfer transaction is
completed, you will be able to know the exchange rate used, and there are no restrictions on the
amounts you can transfer a day. However, the ICICI transfer is somewhat different. After
completion of a money transfer transaction, the exchange rate can only be known after five days,
and there is a daily limit of $5000 that can be transferred a day.
Although the SBI has generally performed well in the past, in recent years, the ICICI has
seen very good performance, almost edging out the SBI in every aspect, especially financially.
The financial years between 2001-2002 and 2005, and 2006, saw very strong gains for
the ICICI bank. Its deposits grew by 200 percent, five times more than the SBI‟s, and while
SBI’s revenue
grew by 30 percent and the ICICI bank’s revenue grew by seven times that percentage. This
trend means that ICICI‟s growth will eventually overtake SBI‟s in the future, in terms of
deposit.

The SBI is a government owned bank (public sector), while ICICI is a privately owned
bank (private sector).

The SBI is much older (more than 200 years old) and more established than the ICICI,
which is less than 25 years old.

The SBI does not limit daily international transfer amounts, while the ICICI limits daily

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 transfers to $5000 a day.

The SBI bank pays a higher percentage on deposits than the ICICI bank.

STATE BANK OF INDIA.

SBI is the oldest bank of India and India’s largest commercial bank, which is a
government, owned bank was established in 1806. The bank provides a wide array of banking
products through their effective network not only in India but also overseas. The bank has about
18,266 branches, including 4,72 branches of its five Associate Banks, and is also accountable for
one-fifth of the loans of India. It has about 8500 ATMs across the nation.

ICICI.
This is the second largest private sector bank in India having2,552 branches and
7,440 ATMs spread across the country. It is among the top commercial banks of India providing
a wide range of banking services through varied delivery channels. Besides offering high-end
banking facilities such as Internet banking, Tele Banking, and Mobile Banking, ICICI also plays
a pivotal role in the domains of investment banking, venture capital and asset management, and
life and non-life insurance. The bank spreads its wings in 18countries across the world including
UK, Canada, Russia, and others

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2.2 NEED AND SIGNIFICANCE OF THE PROJECT.

Capital structure decision is one of the strategic decisions taken by the financial management.
Considerable attention is required to decide the mix up of various sources of finance. A judicious
and right capital structure decision reduces the cost of capital and increase the value of a firm
while a wrong decision can adversely affect the value of the firm. As discussed earlier, various
sources of finance differ in terms of risk and cost. Hence, there is utmost need of designing an
appropriate capital structure. Capital structure decisions are of great significance due to the
following reasons:

Capital structure determines the risk assumed by the firm.

Capital structure determines the cost of capital of the firm.

It affects the flexibility and liquidity of the firm.

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2.3 HISTORY

1. ICICI

ICICI was formed in 1955 at the initiative of the World Bank, the Government of India and
representatives of Indian industry. The principal objective was to create a development financial
institution for providing medium-term and long-term project financing to Indian businesses. In
the 1990s, ICICI transformed its business from a development financial institution offering only
project finance to a diversified financial services group offering a wide variety of products and
services, both directly and through a number of subsidiaries and affiliates like ICICI Bank.

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 2.STATE BANK OF INDIA-

The Bank is actively involved since 1973 in non-profit activity called Community Services
Banking. All our branches and administrative offices throughout the country sponsor and
participate in large number of welfare activities and social causes. Our business is more than
banking because we touch the lives of people anywhere in many ways. The bank is entering into
many new businesses with strategic tie ups – Pension Funds, General Insurance, Custodial
Services, Private Equity, Mobile Banking, Point of Sale Merchant Acquisition, Advisory
Services, structured products etc – each one of these initiatives having a huge potential for
growth. The Bank is forging ahead with cutting edge technology and innovative new banking
models, to expand its Rural Banking base, looking at the vast untapped potential in the hinterland
and proposes to cover 100,000 villages in the next two years.

Special Features of State Bank of India

1. There schemes meet the customer varied needs.

2. Nominal services processing charges.
3. Loan at competitive rates.

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4. Interest charges on reducing balance only instead of annual balance.
5. Interest is compounded quarterly risk
6. No penalty for repayment of loan

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ICICI BANK-PROFILE

ICICI Bank is second largest and leading bank of private sector in India. It’s
headquarter is in Mumbai, India. According to Forbes State Bank of India is the 29th most
reputed company in the world. The Bank has 2,533 branches and 6,800 ATMs in India. In 1998
ICICI Bank launched internet banking operations. The Bank offers a wide range of banking
products and financial services to the corporate and retail customers. It also provides services in
the areas of venture capital investment banking, asset management and life and non-life
insurance. ICICI Bank's equity shares are listed in India on Bombay Stock Exchange (BSE) and
the National Stock Exchange (NSE) and its American Depositary Receipts (ADRs) are also
listed on the New York Stock Exchange (NYSE)

ICICI Bank limited is major banking and financial services organization in India. The bank is
the second largest bank in India and the largest private sector bank in India by market
capitalization. They are publicly held banking company engaged in providing a wide range of
banking and financial services including commercial banking and treasury operations. The bank
and their subsidiaries offers a wide range of banking and financial services including commercial
banking, retail banking, project and corporate finance, working capital finance, insurance,
venture capital and private equity, investment banking, broking and treasury products and
services. They offer through a variety of delivery channels and through their specialized
subsidiaries in the area of investment banking, life and non-life insurance, venture capital and
assets management. The bank has a network of 2035 branches and about 5518 ATMs in India
and presence in 18 countries. They have subsidiaries in the United Kingdom, Russia and Canada,
branches in United States, Singapore, Bahrain, Hong-Kong, Srilanka, Qatar and Dubai
International finance centre and representative offices in United Arab Emirates, China, South
Africa, Bangladesh, Thailand, Malaysia and Indonesia. Our UK subsidiary has established
branches in Belgium and Germany.
The bank equity shares are listed in India on Bombay Stock Exchange and National stock
exchange of India Limited and their American Depository Receipts (ADRs) are listed on NYSE.
The bank is first Indian banks listed NYSE.

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2.4. OBJECTIVE OF THE STUDY

 To compare the financial performance of State Bank of India and ICICI Bank.
 To know and compare the profitability position of State Bank of India and ICICI Bank.
 To know and compare the managerial efficiency of State Bank of India and ICICI
Bank.
 To offer findings and suggestions to enhance the financial performance of State Bank of
India and ICICI Bank.
 To conduct comparative study regarding to capital structure of SBI and ICICI.
 To find out the cost of different financial sources of project financing.
 To know the portion of debt and equity in capital structure.
 To find out the overall cost of capital of SBI & ICICI

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 3. LITERATURE REVIEW

1.Dr. M.Kumarswami ,Jayprasad D.(2014),The study was based on Customer Relationship

Management in Kaveri Grameena Bank, The respondents have shown unfavourable views with
respect to banking experience, transaction accuracy and promptness. However, customers share
positive views concerning bank trustworthiness and accuracy of banking solutions. Therefore, it
can be argued that customers trust their bank. Indeed, trust is seen as a critical construct in a
range of discipline areas including CRM. Further, within the realm of relationship marketing,
trust has been recognized as an important variable for the success of relationships in the banking
sector.

2. N.Satghiya ,(2013),A study on customer relationship management practises (with reference to

salem district ,In the study The total number of Public Sector Banks, Private Sector Banks, in the
Salem district has been taken into consideration to decide about the number of banks for the
purpose of study in each category. 2. By the above process totally 22 banks were chosen for the
purpose of study. From each of the 22 banks 25 customers were selected as respondents. 3. The
branches situated in the North, South and Central part of the Salem district were covered for the
purpose of study. The findings says that the customers of banking industries strongly believed
that advertisements, reports, communication, guidance, may I help you counter, information
pamphlets and ombudsman committee role to achieve the customer satisfaction. The customer
staff relationships in CRM depend upon employee’s personal touch with their customers and
employee’s performance.

3. Navinkumar Mishra and Vijaykumar Pandey(may 2013) in their paper “customer satisfaction
–A comparison of public and private sector banks of India in which research is done to compare
public and private sector banks of India by evaluating their customer satisfaction. This research
is mainly based on primary data which has been collected through a well-structured
questionnaire (adapted from three different studies). The questionnaire has been distributed to

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350 different respondents on different chosen locations. This paper makes a useful contribution
as there are very low number of studies has been conducted in India on such areas like price,
technology, reliability, customer service, location and infrastructure. Their findings says that
most of people prefer to deal with public sector banks due to safety and reliability factors.

4.Uppal R K and Poonam Rani (2012), in their study titled Customer Perception towards Better
Banking Services in India- An Empirical Study, analyzed customer perception about CRM,
reliability, accuracy, security and transparency among the customers of public sector banks,
Indian private sector banks and foreign banks in Amritsar, Punjab. They have found that most of
the customers are satisfied with banking services and that customer satisfaction can be improved
by ensuring more speed in rendering transactions and giving prompt services.

5.Jaspal Singh and Gagandeep Kaur(2009) in “Determinants of Customer Satisfaction: An

Empirical Study of Select Indian (Universal) Banks” in which they investigate the determinants
of customer satisfaction of Indian(Universal) banks. Data was collected from a sample of 180
respondents using convenience sampling technique. Factor analysis results reveals that
responsiveness, tangibles, services innovation, reliability and accessibility, assurance, pricing
and other facilities, problem solving capability and convenient working hours are the main
determinants of customer satisfaction .Their result shows that customer satisfaction is influenced
by nine factors, namely, Responsiveness, tangibles like appearance of a bank’s physical
facilities’ , equipment and employees, Reliability and accessibility, assurance, pricing and other
facilities, problem solving capability and convenient working hours of bank.

6.Manoj p.k, (2010) in “Determinants of Profitability and Efficiency of Old Private Sector Banks
in India with Focus on Banks in Kerala State:”
An Econometric Study paper which Focuses on the OPBs based at Kerala state (KOPBs) in the
Indian union, this paper seeks to identify the determinants of profitability and operational

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efficiency of KOPBs, using an econometric methodology. For the sake of comparison of KOPBs,
the general case of OPBs and New generation Private sector Banks (NPBs) in India have also
been analyzed. Their study results that priority sector advances are do not affect either
profitability or risk management adversely, as against the popular belief in this regard. The
strategies as above have got special significance in respect of OPBs in general and KOPBs in
particular in the ongoing globalized regime of industrial competition; because higher
profitability, and strong risk management capability are vital for these banks for survival and
growth.

7.Pooja Mengi (2008) in “Customer satisfaction with service quality-An empirical study of
public and private sector banks”
The study compares customers’ perceptions of service quality of public and private banks of
Jammu. The service quality of both the banks has been measured using SERVQUAL (service
quality) scale. It was found that customers of public sector banks are more satisfied with the
service quality, than those of private sector banks. The results of the study indicate that
tangibility and reliability provides Maximum satisfaction to customers of private as well as
public sector banks.. Superior SERVQUAL performance will ensure maximum customer
satisfaction and also help in attaining customer’s loyalty. Improved customer satisfaction through
SERVQUAL would result in a positive word-of-mouth and consequently better customer
acquisition and retention.

8. B S Bodla and RichaVerma Bajaj (2006) in “ An analysis of private sector banks India” .In
this paper the researchertheProduction approach of Data Envelopment Analysis (DEA) was
applied to judge the efficiency of private sector banks. In this model, banks are considered as
service providers, and while interest expenses, non-interest expenses and the Non-Performing
Asset (NPA) ratio. The study findings say that the position of private banks is greatly affected by
the output variables; Centurion Bank (64.17%) was the most inefficient bank among the private
sector banks during their study period.

4 RESEARCH METHODOLOGY

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A broad definition of research is given by MartynShuttleworth - "In the broadest sense of the
word, the definition of research includes any gathering of data, information and facts for the
advancement of knowledge.Methodology is the systematic, theoretical analysis of the methods
applied to a field of study. It comprises the theoretical analysis of the body of methods and
principles associated with a branch of knowledge. Typically, it encompasses concepts such as
paradigm, theoretical model, phases and quantitative or qualitative techniques.So it is easy to
derive that one of the most significant factor in a research work is to determine research
methodology.
The purpose is to describe the Title, Objectives, Hypothesis, Research Design, Sample Design,
Sources and Data Collection, Sampling Technique, Analysis and Interpretation of data and also
Limitations of the study. The title of the research is A Comparative study of SBI and ICICI
banking services with special reference to customers’ preferences of Gujarat state”.

4.1 PRIMARY DATA:

Primary data is collected by face to face interaction with the manager ICICI and
SBI BANK by conducting a survey on user of bank.

4.2SECONDARY DATA:

The secondary data required for the project was collected from websites .the name
of which is mentioned in the bibliography.

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5. DATA ANALYSIS AND INTERPRETATION OF SERVICES

Case 1 – Sale of Gold during Akshya Tritiya (2012)

SBI

SBI could simply mention the rate of return on its gold mutual funds or offer the
advantages of „paper‟ gold over physical gold in its advertisements during Akshaya Tritiya. The
advantages of investing in paper gold are not even mentioned on their mutual funds website by
means of a flash advertisement.

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ICICI

We can see here that SBI advertises sale of mutual fund units in their Gold Fund scheme
during the festival of Akshaya Tritiya. Investors who have knowledge about the market will
know very well that gold as a commodity yields an average 20% YoY and has since never saw a
negative rate of return. SBI also had a scheme that offered 1% discount on all denominations of
Gold coins except those above 100gms during their campaign. The drawback of advertising like
this is, many do not know the benefits of investing in „paper‟ gold. Which means, gold mutual
funds or gold exchange traded funds; this form of investment has superior advantages than
investing in gold as a physical commodity. ICICI however had decorated all its branches during
the festival and even offered a larger discount, 8% on gold coins being purchased online. Many
Indians today still choose gold as a physical commodity and it is possible that ICICI had better
sales than SBI in comparison to gold coins.

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 5.1. SUBSIDIARIES OF SBIAND ICICI

SUBSIDIARIES OF SBI
State Bank of Bikaner & Jaipur

State Bank of Hyderabad

State Bank of Mysore

State Bank of Patiala

State Bank of Patiala

State Bank of Travancore

 

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 SUBSIDIARIES OF ICICI BANK

NATIONAL INTERNATIONAL

ICICI Lombard ICICI Bank UK PLC

ICICI Prudential Life Insurance Company ICICI Bank Canada

Ltd

ICICI Securities Limited ICICI Bank Eurasia LLC

ICICI Prudential Asset Management

Company Limited

ICICI Venture

ICICI direct.com

ICICI Foundation

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 5.2. DATA PRESENTATION AND ANALYSIS

Parameters Used

Against the backdrop of CAMEL framework , the following parameters have been used
in this study to evaluate the performance of the respective banks under study:

Capital Adequacy Ratio = (Tier I Capital + Tier II Capital) / Risk weighted Assets

Net NPA to Net Advance = Net NPA/Net Advances X 100

Return on Assets = Net Profit / Assets X 100

Return on Net Worth = Net Profit / Net Worth X 100

Credit Deposit Ratio = Total Loans / Total Deposits X 100

Debt Equity Ratio = Total Debt/ Shareholders Fund

Net Interest to Funds Ratio = ( Int. Earned – Int. Expended) / Total Funds X 100

Return on Equity = Return to equity shareholders/ Equity Shareholders Fund X 100

Current Ratio = Current Assets / Current Liabilities

Quick Ratio = Quick Assets / Quick Liabilities

 FOR THIS PURPOSE THE FOLLOWING PARAMETERS

HAVE BEEN STUDIED

1. Comparative Analysis of Capital Adequacy Ratio (CRAR)

2. Comparative Analysis of Net NPA to Net Advances
3. Comparative Analysis of Return on Assets (%)
4. Comparative Analysis of Return on Net worth (%)

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 5. Comparative Analysis of Credit Deposit Ratio (%)
6. Comparative Analysis of Debt Equity Ratio
7. Comparative Analysis of Net Interest of Funds Ratio (%)
8. Comparative Analysis of Return on Equity (%)
9. Comparative Analysis of Current Ratio
10. Comparative Analysis of Quick Ratio

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 5.3.DATA ANALYSIS

CREDIT DEPOSIT RATIO

Table I : Comparative Analysis of Capital Adequacy Ratio (CRAR)

YEAR SBI ICICI

2011 - 12 13.86 18.50

2012 - 13 12.92 18.70

2013 - 14 12.96 17.70

2014 - 15 12.00 17.00

2015 - 16 13.12 16.60

Mean 12.97 17.70

Source : Annual Reports of SBI and ICICI from 2011-12 to 2015-16

Comparative Analysis of Capital Adequacy Ratio (CRAR)

20
18
16
14
PERCENTAGE %

12
10
SBI
8
6 ICICI
4
2
0
2011 - 12 2012 - 13 2013 - 14 2014 - 15 2015 - 16
YEAR

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 Table I demonstrates that the Capital Adequacy Ratio (CRAR) of both banks under study
are highly satisfactory and well above the standard set by RBI for Indian banks. The highest
CRAR of both SBI and ICICI were registered in the year 2011 -12 and were 13.86% and 18.50%
respectively, whereas the lowest CRAR of SBI was 12% in the year 2014 – 15 and that of ICICI
was 16.60% in the year 2015 – 16. From the table, it is clear that the mean CRAR of ICICI Bank
(17.70%) is higher than that of SBI (12.97%) for the study period, which implies that the CRAR
of ICICI Bank is 4.73% more than that of SBI.

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 Table II. Comparative Analysis of Net NPA to Net Advances

YEAR SBI ICICI

2011 - 12 1.82 0.73

2012 - 13 2.10 0.77

2013 - 14 2.57 0.97

2014 - 15 2.12 1.61

2015 - 16 3.81 2.98

Mean 2.98 1.41

Source : Annual Report of SBI and ICICI from 2011 -12 to 2015 – 16

Comparative Analysis of Net NPA to Net Advances

4
3.5
3
PERCENTAGE %

2.5
2 SBI
1.5 ICICI
1
0.5
0
2011 - 12 2012 - 13 2013 - 14 2014 - 15 2015 - 16
YEAR

The Net NPA to Net Advances (%) of SBI and ICICI Bank for the study period is
exhibited in Table II. Net NPA to Net Advances is an important parameter for determining the

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capital adequacy and asset quality of the firm. It is ratio of net Non-performing Assets (NPA) to
the Net Advances of an enterprise. The lower the Net NPA level to Net Advances better is the
coverage of risks from the perspective of banks. The highest Net NPA Advance of both SBI and
ICICI were 3.81 and 2.98 respectively in the year 2015 – 16, wereas the lowest Net NPA
Advances of SBI and ICICI was registered in the year 2015 – 16 and were 1.82% and 0.73%
respectively. From the table, it is clear that the mean Net NPA to Net Advances of ICICI Bank
(1.41%) is lower than that of SBI (2.48%) for the study period, which implies that ICICI Bank
has lower level of Net NPA to Net Advances than that of SBI.

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 Table III : Comparative Analysis of Return on Assets (%)

YEAR SBI ICICI

2011 - 12 0.88 1.50

2012 - 13 0.91 1.70

2013 - 14 0.65 1.78

2014 - 15 0.76 1.86

2015 - 16 0.46 1.49

Mean 0.73 1.67

Source : Annual Reports of SBI and ICICI form 2011 -12 to 2015 – 16

Comparative Analysis of Return on Assets (%)

2
1.8
1.6
1.4
PERCENAGE %

1.2
1 SBI
0.8 ICICI
0.6
0.4
0.2
0
2011 - 12 2012 - 13 2013 - 14 2014 - 15 2015 - 16
YEAR

Return on asset quality and management efficiency of an institution and the

higher the ratio, better is said to be performance of the firm.

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 It is quite clear from this table that for both the banks under study, Return on
Assets is at a very low level. The highest Return on Assets (%) of SBI was 0.91% in 2012 -13
and that of ICICI 1.86% in the year 2014 – 15, whereas the lowest Return on Assets (%) of both
SBI and ICICI was registered in the year 2015 – 16 and were 0.46% and 1.49% respectively. It
is also evidence that the mean Return on Assets (%) of ICICI Bank (1.67%) is higher than that of
SBI (0.73%) for the study period, which implies that ICICI Bank scores over SBI in terms of
return on assets.

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Table IV : Comparative Analysis of Return on Net worth (%)

YEAR SBI ICICI

2011 - 12 13.94 10.70

2012 - 13 14.26 12.48

2013 - 14 9.20 13.40

2014 - 15 10.20 13.89

2015 - 16 6.89 11.19

Mean 10.90 12.33

Source : Annual Reports of SBI and ICICI from 2011 – 12 to 2015 – 16

Comparative Analysis of Return on Net worth (%)

16
14
12
PERCENTAGE %

10
8 SBI
6 ICICI
4
2
0
2011 - 12 2012 - 13 2013 - 14 2014 - 15 2015 - 16
YEAR

Table IV demonstrates that the Return on Net worth (%) of both the banks
under study is fluctuating over the study period. Return on Net Worth is the ratio of net profit to

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the net worth of an enterprise and is an important parameter in determining the profitability and
management efficiency of an enterprise. The higher the return on worth better is the
performance of the enterprise.

From the table, it is clear that the highest Return on Net Worth of SBI i.e.
13.94% was registered in the year 2011 -12 whereas in case of ICICI Bank, the highest return on
Net Worth i.e. 13.89% was registered in the year 2014 – 15. The lowest return on Net Worth of
SBI was 6.89% in 2015 – 16 and in case of ICICI Bank, it was 10.70% in the year 2012 – 12.
The mean Return on Net Worth of ICICI Bank (12.33%) is higher than that of SBI (10.90%) for
the study period, which implies that ICICI Bank has scores over SBI in terms of Return on Net
Worth by 2.43%, indicating a superior performance on part of ICICI Bank over its counterpart
for the period under study.

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 Table V : Comparative Analysis of Credit Deposit Ratio (%)

YEAR SBI ICICI

2011 - 12 82.14 97.71

2012 - 13 85.17 99.25

2013 - 14 86.64 100.71

2014 - 15 84.47 104.72

2015 - 16 83.56 105.08

Mean 84.40 101.49

Source : Annual Reports of SBI and ICICI from 2011 – 12 and 2015 – 16

Comparative Analysis of Credit Deposit Ratio (%)

120

100

80
PERCENTAGE %

60 SBI
ICICI
40

20

0
2011 - 12 2012 - 13 2013 - 14 2014 - 15 2015 - 16
YEAR

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 Table V exhibits the Credit Deposit Ratio (%) of both the banks for the last five
years from 2011 -12 to 2015 – 16. Credit Deposit Ratio denotes the proportion of loan assets
created by a bank from the deposits received. The higher the credit deposit ratio, better is the
performance of bank.

It is clear from the table that the Credit Deposit Ratio of ICICI Bank is showing an
increasing trend, whereas in case of SBI, it is more or less stable throughout the study period.
The highest Credit Deposit Ratio of SBI was 86.64% in 2013 – 14 and that of ICICI was
105.08% in 2015 – 16 105.08%, whereas the lowest Credit Deposit Ratio of both SBI and ICICI
was registered in the year 2011 -12 and were 82.14% and 97.71% respectively. It is also evident
from the table that the mean Credit Deposit Ratio of ICICI Bank(101.49%) is higher than of SBI
(84.40%) for the study period, which implies that ICICI Bank has created more loan assets from
its deposits as compared to SBI.

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Table VI : Comparative Analysis of Debt Equity Ratio

YEAR SBI ICICI

2011 - 12 13.94 6.55

2012 - 13 13.87 6.57

2013 - 14 13.34 6.65

2014 - 15 13.87 6.64

2015 - 16 13.55 6.86

Mean 13.71 6.65

Source : Annual Reports of SBI and ICICI from 2011 -12 to 2015 – 16

Comparative Analysis of Debt Equity Ratio

120

100
PERCENTAGE %

80

60 SBI
ICICI
40

20

0
2011 - 12 2012 - 13 2013 - 14 2014 - 15 2015 - 16
YEAR

Debt Equity Ratio of SBI and ICICI Bank for the study period are exhibited in table
VI. Debt Equity Ratio is a measure of the solvency and management efficiency of an institution
and is determined as the ratio of total debt to shareholders fund.

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 From the table it is clear that both the banks have maintained a stable Debt Equity Ratio
over the ICICI Bank was 6.55 in 2011 – 12. It is also evident that the mean Debt Equity Ratio of
SBI (13.71) is higher than that for ICICI (6.65), which is a clear indicator of the fact that SBI has
maintained a generally higher level of Debt Equity Ratio than that of ICICI for the entire study
period.

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 Table VII : Comparative Analysis of Net Interest of Funds Ratio (%)

YEAR SBI ICICI

2011 - 12 3.38 2.44

2012 - 13 3.06 2.74

2013 - 14 2.93 2.91

2014 - 15 2.87 3.07

2015 - 16 2.64 3.11

Mean 2.98 2.85

Source : Annual Report of SBI and ICICI from 2011 – 12 to 2015 – 16

Comparative Analysis of Net Interest of Funds Ratio (%)

3.5

2.5
PERCENTAGE %

2
SBI
1.5
ICICI
1

0.5

0
2011 - 12 2012 - 13 2013 - 14 2014 - 15 2015 - 16
YEAR

Table VII exhibits the Net Interest to total Funds Ratio (%) of SBI and ICICI Bank for the study
period. Net Interest to Total Funds Ratio is a measure of the proportion of net interest to total

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funds available to an institution. From the table, it is clear that the highest Net Interest Funds
Ratio of SBI was 3.38% in 2011 -12 and that of ICICI was 3.11% in 2015 – 16, whereas the
lowest Net Interest to Funds Ratio of SBI was 2.64% in the year 2015 – 16 and that of ICICI was
2.44% in the year 2011 – 12. It is quite interesting to note that the Net Interest to Funds Ratio
has been slightly declining in case of SBI whereas in case of ICICI Bank it is showing an
increasing trend. The mean Net Interest to Funds Ratio of SBI (2.98%) is higher than that of
ICICI Bank (2.85%) for the study period, which implies that SBI has outperformed ICICI Bank
in terms of Net Interest to Funds Ratio over the period under study.

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Table VIII : Comparative Analysis of Return on Equity (%)

YEAR SBI ICICI

2011 - 12 14.36 11.10

2012 - 13 15.94 12.90

2013 - 14 10.49 13.70

2014 - 15 11.17 14.30

2015 - 16 7.74 11.30

Mean 11.94 12.66

Source : Annual Reports of SBI and ICICI from 2011 – 12 to 2015 – 16

Comparative Analysis of Return on Equity (%)

16
14
12
PERCENTAGE %

10
8 SBI
6 ICICI
4
2
0
2011 - 12 2012 - 13 2013 - 14 2014 - 15 2015 - 16
YEAR

Table VIII demonstrates that the Return on Equity of both the banks under
study is fluctuating from year to year. Return on Equity is the ratio of net earnings to equity
shareholders to the total equity shareholders fund. It is a measure of profitability and earnings of

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an institution and the higher the return on equity, the better is said to be the performance of the
firm. The highest Return on Equity of SBI was 15.94% in the year 2012 – 13 and in case of
ICICI Bank, it was 14.30% in the year 2014 – 15, whereas the lowest Return on Equity of SBI
was 7.74% in 2015 – 16 and that of ICICI was 11.10 % in 2011 – 12. It is also evident that the
mean Return on Equity of ICICI Bank (12.66%) is higher than that of SBI (11.94%) by 0.72 %
which implies that ICICI Bank provides a higher return to equity shareholders as compared to
SBI.

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Table IX : Comparative Analysis of Current Ratio

YEAR SBI ICICI

2011 - 12 0.05 0.07

2012 - 13 0.04 0.09

2013 - 14 0.03 0.09

2014 - 15 0.04 0.08

2015 - 16 0.07 0.13

Mean 0.046 0.092

Source : Annual Reports of SBI and ICICI from 2011 – 12 to 2015 -16

Comparative Analysis of Current Ratio

0.14

0.12

0.1
Axis Title

0.08
SBI
0.06
ICICI
0.04

0.02

0
2011 - 12 2012 - 13 2013 - 14 2014 - 15 2015 - 16
YEAR

Table IX exhibits the Current Ratio of SBI and ICICI Bank for the study period and it
is quite clear that both the banks have a very low level of current ratio. Current Ratio is an

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indicator of the liquidity position of an enterprise and is measured by the ratio of current assets to
current liabilities. From this table, it is clear that the highest Current Ratio of both SBI and
ICICI was observed in 2015 – 16 and were 0.07 and 0.13 respectively. Whereas, the lowest
Current Ratio of SBI was 0.03 in 2013 – 14 and that of ICICI Bank was 0.07 in 2011 -12. The
mean Current Ratio of ICICI (0.092) is higher than that of SBI (0.046) and as such, it may be
concluded the ICICI Banks has been a better performer of the two in terms of Current Ratio for
the period under study.

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Table X : Comparative Analysis of Quick Ratio

YEAR SBI ICICI

2011 - 12 12.05 16.71

2012 - 13 12.15 10.53

2013 - 14 13.88 11.31

2014 - 15 10.78 13.81

2015 - 16 10.84 14.97

Mean 11.94 13.47

Source : Annual Reports of SBI and ICICI from 2011 – 12 to 2015 – 16

Comparative Analysis of Quick Ratio

18

16

14

12
PERCENTAGE %

10
SBI
8
ICICI
6

0
2011 - 12 2012 - 13 2013 - 14 2014 - 15 2015 - 16
YEAR

Table X exhibits the Quick Ratio of SBI and ICICI Bank for the study period and
it is quite clear that both the banks have a very high level of quick ratio. Quick Ratio as another

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measure of the liquidity position of a firm and is determined by the ratio of quick assets to quick
liabilities. It is evident from Table X that the highest Quick Ratio of SBI, i.e. 13.88, was
observed in 2013 – 14 and that of ICICI Bank, i.e. 16.71, was observed in 2011 -12. Whereas,
the lowest Quick Ratio of SBI was 10.78 in 2014 -15 and that of ICICI Bank were 10.53 in 2012
– 13. It is also clear that the mean Quick Ratio of ICICI (13.47) is higher that of SBI (11.94)
and as such, it may be concluded that ICICI Bank has maintained a higher Quick Ratio than SBI
for the period under study.

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ICICI

Some of the basic principles of running e-commerce would be to have a website that is
user friendly and provides adequate info without having to do much of searching.
We can see here on the SBI website that the text of the links is not boldly displayed and
hence does not stand out. The home page focuses on 3 areas of banking, personal, agriculture
and NRI. These are 3 source of low volume of revenue. Assuming a start up wishes to bank with
SBI, and opens their home page, the company executive would have very little info when he visi
ts the corporate accounts page. The reason being, SBI merely offers soft benefits of using their
service citing leaders in market, competitive pricing etc. It does not mention details of services

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such as asset management. It only mentions that it would be managed by SBI Capital. To know
more about SBI capital one must visit their website. The page also provides details which form
traditional services and nothing new. These include term loans, leasing and export/import credit;
just to name a few. It is also seen that SBI does noshowcase any advertisement about its services.
The only flash advertisement running so far is:

The advertisement follows mentioning a vast set of services offered by the bank. It is
unfortunate that the flash advertisement has no hyperlink if a customer was interested to know
what the vast set of services offered by the bank is. Brand re-enforcement of SBI is not needed.
Since the bank is generations old. Their brand value is familiar to the masses.

ICICI boldly advertises its services on the website giving customers and potential

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customers vast details of their banking services. Emphasis on „Wealth Banking‟ is an excellent
move since there are more than 1 million newly rich Indians in this country who form their
potential customer base. ICICI even offers student accounts as well which is gaining popularity
among many today. In case of corporate accounts which are a major revenue source, there are
vast details of what ICICI offers to those taking up their services. Here is a screenshot of the
details

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 5.4.ANALYSIS OF PERFORMANCE OF ICICI BANK AND
SBI

 25.5% increase in standalone profit after tax from Rs. 51.51 bn in FY2011 (April 2010-
March 2011) to Rs. 64.65 bn in FY2012 (April 2011-March 2012)

 Net interest income increased by 19.0% year-on year; full year NIM improved by 9 basis
points to 2.73%

 Fee income increased by 4.5%

 30.8% reduction in provisions to Rs. 15.83 bn

 25.4% increase in consolidated profit after tax from Rs. 60.93 bn in FY2011 to Rs. 76.43
bn in FY2012, despite additional third party motor pool losses for ICICI General

 31.0% increase in standalone profit after tax from Rs. 14.52 bn in Q4-2011 (January-
March 2011) to Rs.19.02 bn in Q4-2012 (January-March 2012)

 Net interest income increased by 23.7% year-on year; net interest margin at 3.01%
compared to 2.74% in Q4-2011

 35.8% year-on-year increase in non-interest income driven by increased dividends from

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 subsidiaries
 Increase in provisions on account of restructuring of exposures in Q4-2012

 Advances increased by 17.3% year-on-year to Rs.2,537.28 billion at March 31, 2012

 CASA ratio at 43.5% at March 31, 2012; average CASA ratio at 39.0% in Q4-2012

 Net NPA ratio decreased to 0.62% at March 31, 2012 from 0.70% at December 31, 2011
(March 31, 2011: 0.94%)

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 During fiscal 2012, ICICI Bank focused on profitable growth by leveraging its
rebalanced funding mix and strong capital position to grow our loan portfolio and improving the
credit quality of our loan portfolio Profit after tax increased by 25.5% from Rs. 51.51 billion in
fiscal 2011 to Rs. 64.65 billion in fiscal 2012. The increase in profit after tax was mainly due to a
19.0% increase in net interest income, 12.8% increase in non-interest income and 30.8%
decrease in provisions and contingencies (excluding provisions for tax). Net interest income
increased by 19.0% from Rs. 90.17 billion in fiscal 2011 to Rs. 107.34 billion in fiscal 2012,
reflecting an increase of 9 basis points in net interest margin and an increase of 15.0% in average

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interest earning assets. Non-interest income increased by 12.8% from Rs. 66.48 billion in fiscal
2011 to Rs. 75.02 billion in fiscal 2012. The increase in non-interest income was primarily.
due to an increase in dividend income from subsidiaries from Rs. 4.11 billion in fiscal 2011 to
Rs. 7.36 billion in fiscal 2012 and a decrease in loss from treasury-related activities from Rs.
2.15 billion in fiscal 2011 to Rs. 0.13 billion in fiscal 2012.Loss from treasury-related activities
for fiscal 2012 primarily includes realized/MTM provision on security receipts, offset, in part, by
reversal of MTM loss/realized gain on investments in government of India securities and other
fixed income positions and gain on equity/preference investments. Fee income increased by
4.5% from Rs. 64.19 billion in fiscal 2011 to Rs. 67.07 billion in fiscal 2012.
Non-interest expenses increased by 18.6% from Rs. 66.17 billion in fiscal 2011 to Rs. 78.50
billion in fiscal 2012 primarily due to an increase in employee expenses and other administrative
expenses. Provisions and contingencies (excluding provisions for tax) decreased by 30.8% from
Rs. 22.87 billion in fiscal 2011 to Rs. 15.83 billion in fiscal 2012. The decrease in provisions and
contingencies (excluding provisions for tax) was primarily due to a reduction in provisions for
retail non-performing loans, as accretion to retail non-performing loans declined sharply from
fiscal 2011.Total assets increased by 16.6% from Rs. 4,062.34 billion at March 31, 2011 to Rs.
4,736.47 billion at March 31, 2012. Total deposits increased by 13.3% from Rs. 2,256.02 billion
at March 31, 2011 to Rs. 2,555.00 billion at March 31, 2012. Savings account deposits increased
by 13.7% from Rs. 668.69 billion at March 31, 2011 to Rs. 760.46 billion at March 31, 2012.
Current and savings account (CASA) deposits ratio was 43.5% at March 31, 2012 compared to
45.1% at March 31, 2011. Term deposits increased by 16.6% from Rs. 1,239.55 billion at March
31, 2011 to Rs. 1,444.81 billion at March 31, 2012. Total advances increased by 17.3% from Rs.
2,163.66 billion at March 31, 2011 to Rs. 2,537.28 billion at March 31, 2012 primarily due to an
increase in domestic and overseas corporate loans and an increase in the retail loan book. Net
non-performing assets decreased by 22.9% from Rs. 24.58 billion at March 31, 2011 to Rs.
18.94 billion at March 31, 2012 and the net non-performing asset ratio decreased from 0.94% at
March 31, 2011 to 0.62% at March 31, 2012.
ICICI Bank continued to expand our branch network in India. Our branch network in
India increased from 2,529 branches and extension counters at March 31, 2011 to 2,752 branches
and extension counters at March 31, 2012. We also increased our ATM network from 6,104
ATMs at March 31, 2011 to 9,006 ATMs at March 31, 2012.

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 The total capital adequacy ratio of ICICI Bank on a standalone basis at March 31, 2012 in
accordance with RBI guidelines on Basel II was 18.5% with a Tier I capital adequacy ratio of
12.7% compared to a total capital adequacy ratio of 19.5% and Tier I capital adequacy ratio of
13.2% at March 31, 2011.

 Net Profit increased from Rs.8,265 crores in FY11 to Rs.11,707 crores in FY12 (41.66%
YOY growth)

 Operating Profit increased from Rs.25,336 crores in FY11 to Rs.31,574 crores in

FY12 (24.62%YOY growth).

 Capital Adequacy Ratio of the Bank increased from 11.98% (Tier I: 7.77%) in Mar 11
to 13.86% (Tier I: 9.79%) in Mar 2012 (188 bps YOY growth).

 Net Interest Income increased from Rs.32,526 crores in FY11 to Rs.43,291 crores in

53 | P a g e
 FY12 (33.10%YOY growth).

 Net Interest Margin (Whole Bank) increased from 3.32% in FY11 to 3.85% in FY12
(53 bps YOY growth). Domestic NIM increased from 3.63% in FY11 to 4.17% in FY12.

 Dividend of Rs.35 per share (350%) proposed for the year ended 31st March 12.

 Interest Income on Advances increased from Rs.59,976 crores in FY11 to Rs.81,078

crores in FY12 (35.18%YOY growth).

 Interest Income on Resources Operations increased from Rs.20,062 crores in FY11 to

Rs.24,300 crores in FY12 (21.12%YOY growth).

 Interest paid on deposits increased from Rs.43,235 crores in FY11 to Rs.55,644 crores
in FY12 (28.70%YOY growth).

 Non Interest Income decreased from Rs.15,825 crores in FY11 to Rs.14,351 crores
in FY12 (9.31%YOY decline).

PR0FIT

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The Operating Profit of the Bank for 2011-12 stood at Rs.31,573.54 crores as compared to
Rs.25,335.57 crores in 2010-11 registering a growth of 24.62%. The Bank has posted a Net
Profit of Rs.11,707.29 crores for 2011-12 as compared to Rs.8,264.52 crores in 2010-11
registering a growth of 41.66%. While Net Interest Income recorded a growth of 33.10%, the
Other Income declined by 9.31%, Operating Expenses increased by 13.27% attributable to
higher staff cost and other expenses

 DIVIDEND

The Bank has declared dividend @ Rs.35.00 per share (350%) as against @ Rs.30.00 per
share (300%) in the previous year.

 NET INTEREST INCOME

The Net Interest Income of the Bank registered a growth of 33.10% from Rs.32,526.41
crores in 2010-11 to Rs.43,291.08 crores in 2011-12. This was due to higher growth in the
advances and investment portfolios. The gross interest income from global operations
correspondingly rose from Rs.81,394.36 crores to Rs.1,06,521.45 crores during the year
registering a growth of 30.87%.
Interest income on advances in India registered an increase from Rs.56,960.97 crores in
2010-11 to Rs.77,309.15 crores in 2011-12 due to higher volumes. The average yield on
advances in India increased from 9.56% in 2010-11 to 11.05% in 2011-12. Interest income on
advances at foreign offices has also grown by 24.99%.
Income from resources deployed in treasury operations in India increased by 22.05%
mainly due to higher average resources deployed and increase in average yield. The average
yield, which was 7.02% in 2010-11, has increased to 7.51% in2011-12. Total interest expenses

55 | P a g e
of global operations increased from Rs.48,867.96 crores in 2010-11 to Rs.63,230.37 crores in
2011-12. Interest expenses on deposits in India during 2011-12 recorded an increase of 29.19%
compared to the previous year, whereas the average level of deposits in India grew by 14.31%.
The average cost of deposits has consequently increased from 5.26% in 2010-11 to 5.95% in
2011-12.

 NON-INTEREST INCOME

Non-interest income stood at Rs.14,351.45 crores in 2011-12 as against Rs.15,824.59

crores in 2010-11 registering a decline of 9.31%. During the year, the Bank received an income
of Rs.767.35 crores (Rs.827.73 crores in the previous year) by way of dividends from Associate
Banks / subsidiaries and joint ventures in India and abroad.

 OPERATING EXPENSES

There was an increase of 11.59% in the Staff Cost from Rs.15,211.62 crores in 2010-11
to 16,974.04 crores in 2011-12. Other Operating Expenses have also registered an increase of
16.54% mainly due to increase in expenses on rent, taxes and lighting, postage, telegrams &
telephones, insurance and miscellaneous expenditure. Operating Expenses, comprising both staff
cost and other operating expenses, have registered an increase of 13.27% over the previous year.

ASSETS

The total assets of the Bank increased by 9.13% from Rs.12,23,736.20 crores at the end of March

56 | P a g e
2011 to Rs.13,35,519.23 crores as at the end of March 2012. During the period, the loan portfolio
increased by 14.65% from Rs.7,56,719.45 crores to Rs.8,67,578.89 crores. Investments increased
by 5.61% from Rs.2, 95,600.57 crores to Rs.3,12,197.61 crores as at the end of March 2012. A
major portion of the investment was in the domestic market in government securities and
investment in Subsidiaries & Associates.

 LIABILITIES

The Bank’s aggregate liabilities (excluding capital and reserves) rose by 8.01% from
11,58,750.16 crores on 31st March 2011 to Rs. 12,51,568.03 crores on 31st March 2012. The
increase in liabilities was mainly contributed by increase in deposits and borrowings. The Global
deposits stood at Rs.10, 43,647.36 crores as on 31st March 2012 against Rs.9,33,932.81 crores as
on 31st March 2011, representing an increase of 11.75 % over the level on 31st March 2011.

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5.5.Branch Service Delivery

The below floor design matches the SBI Branch located in V.V. Puram in Bangalore

Here is a table that represents the services the below counters offer:

Demand Drafts
Operations Manager (Queries)
Deposits / Withdrawals
Deposits / Withdrawals
Pass Book Entries
Queries
Clearing
May I Help You

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 SBI has very limited space for the number of customers who transact daily .This
crosses more than 500 daily just for deposits and withdrawals. Only two counters manage this
which is highly inadequate; thus leading to crowding and frustration among customers at the VV
Puram branch.SBI could reduce the time spent by customers for waiting by simply adding
additional counters or better yet in order to save cost, they could have the existing counters
perform multiple services rather than only one To improve order among customers at the branch,
they have installed a token machine that dispenses small slips of paper that show when the
customer gets his turn to complete the transaction. These dispense tokens only for deposits or
withdrawals. It would be more convenient if they had a smart token machine that dispenses
tokens for those wanting demand drafts, opening fixed or recurring deposits, NRI accounts or
more importantly those seeking loans; which happen to be a major revenue source for the bank.
There are very little advertisements displayed at the branch regarding the variety of services
offered by the bank. SBI could do so much more, by putting up advertisements on the variety of
accounts it offers for businesses, corporate and individuals. They have a 32 inch television that
displays some of the services it offers but the television is placed at an angle which is not visible
for the customers seated in the branch. The seating arrangements are for 15 but only 4 can view
the television screen. There is one excellent move by SBI to reduce time spent by customers in
writing the deposit slips. The SBI Green Channel Counters, where the customer can simply
swipe his debit card and deposit the required cash at the counter. The cashier would provide an
acknowledgement slip thereafter. This is a boon to customers as they need not scavenge for a
deposit slip, write the details and verify them in the crowded branch and instead get a token and
wait. The poor marketing of this initiative is clearly seen when you visit the branch. The benefits
of the green channel counters are displayed on small pamphlets on the counter glass walls and
the advantages of this are printed in small font text. It is also seen when you Google „SBI Green
Channel‟ the results do not display any information from the company website. In other words,
SBI does not even mention this excellent move on its websit.

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5.6.The floor design below is that of the ICICI Bank Branchin Jayanagar 7th
Block

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  Operations Manager (Complaints)
 New Accounts
 NRI / Forex
 Deposits
 Deposits
 Deposits
 May I Help You
 Fixed Deposits and Others
 Loans
 DEMAT, Mutual Funds

It is seen that the bank branch is much larger and has more counters to cater to
the needs of the customer. ICICI branch employees take up multi tasking during times when
there are more customers to cater to. From 3 counters that accept deposits, they increase it to 4 or
sometimes 5 to ensure waiting times of the customers are reduced. The token system is very well
organized, with separate tokens disbursed form on customers, customers and Gold Customers.
The last set mentioned being customers who avail privilege banking services. There are also

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tokens disbursed reach service, which means if a customer wants to enquire mutual funds or
DEMAT services, then all that needs to be done would be to select the customer type and then
press the button which has the label for the service needed. To make it even more
easier, the token machine prioritizes deposit values as well. If you are a customer
wanting to deposit more than Rs.50, 000/- there is a separate option for the same. This
is not present in SBI, a customer who wants to deposit upwards of Rs.50,000/- would
not get any priority than someone else who has to deposit say Rs.500/-

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 5.7. ATM Services

SBI ICICI

Cash Withdrawal Cash Withdrawal

Mobile Recharge Mobile Recharge
Fund Transfers Pay Utility Bills (All)
Mini Statement Pay ICICI credit card bills
Balance Enquiry Pay ICICI Prudential Insurance premium
Donate to temple trusts Request cheque book
Donate to relief funds Fund Transfers
Pay Utility Bills (MTNL and Bescom only) Mini Statement
Pay SBI Credit Card Bills Balance Enquiry
Pay SBI Life Insurance premium
Pay fees of certain colleges

SBI ATMs do have more services than what ICICI ATMs offer. But there is as mall
glitch in their service delivery and marketing. SBI offers the basic services(highlighted purple) in
all the ATMs. However, the rest are available only in a select few. The data for which is
unavailable .Only on their website in a link that shows up when you type “ATM” in the
searchbar .Poor advertising of its ATM functionality has resulted in lack of awareness among
consumers regarding the services available. In fact, the SBI website also does not advise any
details on what services their ATMs offer The irony is, SBI keeps advertising on the number of
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ATMs and cash withdrawals made by consumers over the years in these ATMs. This advertising
is irrelevant. As a customer of SBI, it makes no difference on the number of ATMs added over
the years since the data is irrelevant. ICICI however offers all the services in all of its ATMs.
And the advertising of its services has been clearly seen on all its branches. There is even a flash
demo on the bank‟ s website that provides details on the services available at its ATMs. Their
current marketing campaign, suggests “Our ATM is almost a bank branch” indicating customers
the improvised convenience offered to them

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 5.8.ATM Transaction Limit of SBI,& ICICI And Other Banks.

The free ATM and withdrawal transaction are few now .most of the banks limited the free ATM
transactions at other bank’s ATM. Does this rule affect you as well yes and no both the reduced
time limit of free ATM transactions is not free for everyone .a large population of Indian is
unaffected by the new rule on ATM withdrawals.

5.9.RBI RULE OF FREE ATM TRANSACTIONS.

The rbi has permitted the banks to reduce the free atm transactions at other bank atm but the
reduction in free ATM transactions in only for the 6 methods.

5.10.FREE ATM TRANSATCTION ON LIMIT FOR SIX METROS.

 You can do only 3 free transaction at other bank atm in a month.

 You can also transact 5 times from the ATM of your own bank.
 Hence the total number of free transaction from an ATM stands 8 for the metros.
 The free transaction include the financial and non financial transactions.
 The mini statement, bill payment, mobile number change.
 PIN number change and balance inquiry are also conducted as transaction.

5.11FREE ATM TRANSACTION LIMIT FOR NON – METROS

 You can transact 5 times from any other banks ATM in a month.

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  You can also transact 5 times from your own bans ATM you can transact only 10 times
from the ATM in anon –metros.
 Like the metro free transaction includes the financial and non financial transactions.
 The banks can charge for the transaction beyond the free limit the maximum charge can
be rs20.

5.12. What if you use ATMs in metro and non-metro.

Suppose you have an sbi account you use debit card once at anon sbi account in lucknow
you go to the delhi and again use your debit card in delhi for 4 times. all the transaction in delhi
is at the non-SBI ATM. In this case you would be charged for one transaction the total
transaction under the 5 free transaction limit but iy exceeds 3 transaction limit for metros if it has
been Bhopal instead of delhi all of your transaction would have been free of charge.

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 5.13.FREE ATM TRANSACTION WITH SBI ACCOUNT

 Sbi does not give free ATM transaction facility more than the prescribed limit of RBI.
 In metro cities you can enjoy maximum 3 free transactions in the month at non sbi ATM.
 You can also transact additional 5 times at sbi ATM there is no distinction between metro
and non metro transactions.
 Sbi charge for Rs 20 for every financial transaction beyond the free limit.
 Sbi charge Rs 8 for every non-financial transaction beyond the free limit.
 Sbi account holder with average minimum balance of 1 lakh is not charged for any ATM.

 FREE ATM TRANSACTION WITH ICICI BANK.

 ICICI bank has set the limit of 5+3(own + other) free transaction in metro atm and 5+5
free transaction in non metro atm.
 Like sbi ,icici bank also charge rs 20 for every financial transaction beyond limit.
 icici bank charges rs 8.5 for every non – financial transaction beyond the limit.
 Hdfc bank, axis bank have also the similar provision for free ATM transactions.
 So next time you use your ATM only when it is necessary change your behavior habit
don’t run to ATM for every expenses rather use debit card at POS and ECS facility which
are free of cost and reduces your hassle as well.

5.14.HOW TO AVOID ATM TRANSACTION CHARGE.

 You can avoid the atm transaction charge levied beyond the free limit.
 Use own bank ATM as far as possible.
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  Don’t withdraw the small amount every other day rather withdraw the money at once you
need for the whole month expenses.
 Minimize the use of atm for non-financial transactions use online banking instead of atm
you can do almost all the non-financial transaction through online banking.
 To get the balance facility information you should use the sms facility.

5.15OTHER UEFUL RULES OF ATM TRANSACTIONS.

Enter pin again for second transaction

You can’t transact more than once after entering the pin once .for every other transaction you
need to fill the pin again earlier you can check the balance and withdraw the money only after
entering the PIN code. but there has been instances of fraud after one leaves the atm center
without completing the transactions .now RBI has restricted it.

 SESSION OUT

Banks can’t make a customer wait endlessly for a transaction the rbi has stipulated that a
transaction must be completed within a given time. if not the session should end .this prevents
the fraud.

 Transaction failure.

It may have happened to you you complete all the formalities to withdraw the amount, you also
get the sms of the debit amount but you never receive the money if the happens to you .lodge a
complaint with the bank immediately you should complaint to your own bank. Irrespective of the
atm .according to RBI rules .a bank must credit amount in the coustomer;s account within 7 days
of the failed transaction .if banks delays in this reimbursement bank should itself give penalty of
one hundred rupees for every day of delay.

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  CASH WITHDRAWL LIMIT PER DAY.

You are free to withdraw any amount from the atm of banks. rather there are daily limits of atm
withdrawl. these is also limit of withdrawl amount per transaction.rbi has given liberty to the
banks to set the banks to set the maximum amount of the withdrwl from the ATM per day. banks
set different limits for its own atm and other bank ATM.

Bank Per Day Withdrawal Limit Per Transaction Withdrawal Limit

Own ATM Other Bank ATM
SBI 40,000 – –
ICICI Bank 50,000 25,000 10,000
PNB 25,000 15,000 10,000
HDFC Bank 25,000 10,000 10,000
BoB 25,000 – –
Axis Bank 40,000 – 10,000

Bank have different withdrawal limit for different types of debit credit the limits have given
above the for the basic debit credit card. I have taken this information from the websites of the
banks. I could not in complete information of some banks please do add. if you have update
knowledge of the withdrawal limits.

Mumbai - The RBI has identified state-owned SBI and private sector ICICI Bank as
systemically important banks and subjected them to higher levels of supervision to prevent
disruption to financial services in event of any failure."The Reserve Bank of India announced
today (on 31 August) the designation of State Bank of India and ICICI Bank Ltd as Domestic
Systemically Important Banks (D-SIBs)," the central bank said in a statement.

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D-SIBs will be subjected to differentiated supervisory requirements and higher intensity of
supervision based on the risks they pose to the financial system," the central bank said in a
statement which banks will be considered as D-SIBs. Banks will be plotted into four different
buckets and will be required to have additional Common Equity Tier 1 (CET1) capital
requirement ranging from 0.2 per cent to 0.8 per cent of risk weighted assets, depending upon the
bucket they are plotted into. Additional CET1 requirement as a percentage of Risk Weighted
Assets (RWAs) for SBI is 0.6 per cent and that of ICICI Bank is 0.2 per cent, RBI said. The
additional CET1 requirements will be applicable from April 1, 2016, in a phased manner and
would become fully effective from April 1, 2019. The additional CET1 requirement will be in
addition to the capital conservation buffer. The framework requires RBI to disclose the names of
banks designated as D-SIBs every year in August starting from August 2015.

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 6.FINDING AND CONCLUSION

So the hypothesis created in the study is accepted.

1. Public Sector banks are facing stiff competition from private sector banks with regard to
customer satisfaction-Accepted, because most of the employees from SBI and ICICI have
opined competition as the biggest hurdle in marketing of the services.
2. There is a difference in level of satisfaction of SBI and ICICI customers.-Accepted
because in the questions answered by the customers, of both the banks, ICICI customers
are more satisfied as they have rated their bank providing very satisfactory services.
3. Employees of ICICI bank are more efficient in providing services to customers than
employees of SBI-Accepted.Because by asking questions like solving of complaints,
ICICI employees are able to solve it within less time period as compare to SBI
employees. Apart from these, many other answers reveal that employees of ICICI put
more efforts for marketing of services as compare to SBI employees.

In a nutshell it can be said that ICICI is the second largest bank in India but due to certain
reasons like courteous staff, working hours, extra facilities and ambience technologically
supported innovative services, and CRM practises are better in terms of customers
preferences and satisfaction..So in general, this study derives that ICICI wins consumer
preferences as compare to SBI, However in there is no vast difference seen in customers
preferences but the difference is quite noticeable to justify this fact.

Findings and conclusion.

State Bank of India (SBI) and ICICI Bank are the two largest banks in
India in public and private sectors respectively. To compare the financial performance of the
banks, various ratios have been used to measure the banks’ profitability, solvency position, and
management efficiency. According to the analysis, both the banks are maintaining the required
standards and running profitably. The performance of SBI and ICICI Bank indicates that are

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significant difference between performance of SBI and ICICI Bank in terms of Deposits,
Advances, Investments, Net Profit, and Total Assets. It is inferred that SBI have an extensive
operation than ICICI Bank. This study will help enhance further research on the subject by
researchers and academicians.

The study found that the mean of Credit Deposit Ratio in ICICI was
higher (89.302 %) than in SBI (76.184%). This shows that ICICI Bank has created more loan
assets from its deposits as compared to SBI. The share of interest expenses in total expenses
higher in ICICI (63.36 %) as compare to SBI (59.99 %) and the proportion of interest income to
total income was higher in case of SBI(84.49 % ) as compared to ICICI (78.84%), which shows
that people prefer ICICI to invest their savings and SBI to take loans & advances. The ratio of
other income to total income was relatively higher in ICICI (21.44 %) as compared to SBI (15.22
%). The Net Profit Margin of ICICI is higher (14.37 %) whereas in SBI it was (10.99 %), which
shows that ICICI has shown comparatively better operational efficiency than SBI. The growth
rate of net profit is 73.97% in SBI which is higher than ICICI which is 55.49%. This shows that
SBI performed well as compared to ICICI. The mean value of total income was higher in SBI
(87,598.58) as compared to that in ICICI (37,282.114). Net worth ratio was also higher in SBI
(14.11 %) than ICICI (8.87 %), which revealed that SBI has utilized its resources more
efficiently as compared to ICICI. The mean value of total expenditure was higher in SBI (Rs.
78,784.06 crores) as compared to that in ICICI (Rs.32,570.61) and the combined growth rate of
expenditure was negative (-1.47%) in the case of ICICI whereas in SBI it is 111.52%. Deposits
in SBI were continuously increased. However deposits in ICICI were decreased (with a declining
trend) till 2009-10 but these were increased in the subsequent years. In case of SBI Advances
were continuously increased (with a decreasing trend) with the combined growth rate of (108.16
%), However Advances in ICICI were decreased (with a declining trend) till 2009-10 but these
were increased thereafter with combined growth rate of (12.45 %). It shows that ICICI has
suffered with funds or avoid providing advances through 2007-08 to 2009-10. Hence, on the
basis of the above study or analysis banking customer has more trust on the public sector banks
as compared to private sector banks.

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 6.1.FINDINGS AND SUGGESTIONS.

The conclusion and especially findings in detail From this research is described and elaborated in
this chapter .Apart from this, some suitable suggestions are also mentioned.

SUGGESTIONS

On the basis of the entire analysis of customers’ responses and employees responses as well
also by incorporating their suggestions, as a researcher some suggestion are as follows from the
entire evaluation of this study.

SBI as the leading bank in India, technologically updated also as compare to previous years,
But due to tough competition with other banks and especially private sector giant ICICI ,SBI has
to face a tough competition, so suggestion is that firstly it should try to minimize its NPA(non
performing assets) which is quit higher than the other banks, then there can be a noticeable
improvements in its performance.

Another suggestion is about the delay in transaction. By asking many customers it is found
that many of the senior employees from SBI takes more time than the required during
completion of the transaction, for e.g. cashier takes unofficial breaks, to stand in a long queue to
fill up pass book, many a times the employees attitude is also not so courteous or supportive,
they may not much attentive to the customers.

Many a times ICICI keeps more bank charges for any ordinary transaction as a mediator or
even in credit or debit card as compare to SBI. Their ATM charges are also higher as compare to
SBI ,Apart from these for some special services they charge higher than SBI.The reason is easy
to understand that ICICI is a private sector bank unlike SBI.

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16

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 So far as ATMS are concerned, many a times customers find difficulty due to faulty ATMs,or
when they are not properly in working conditions. If they lodge complaints it is not easily solved
so the suggestion is that being a leader of banking sector SBI should give prompt solution of this
very common problem faced by customers.

In net banking system on the basis of this study it was found that SBI customers are not very
satisfied,the reason might be difficulty in accessibility or system.They should focus on more
updated system and consumer friendly operations of net banking like ICICI.

Being public sector bank SBI provides necessary facilities and ambience but not compatible to
ICICI. This is one of the major factor which affects customers preference to select a bank and
also affect their satisfaction level.

A suggestion to SBI is that normally for loan sanctioning it takes more time as compare to
other banks and especially for housing loan .The applying and sanctioning process is also not so
hassle free. Apart from these SBI demands more documents as compare to ICICI. So due to this
many small entrepreneurs or business ventures cannot take the advantage.

Every bank is required to use technologically updated service facilities now a days in the
tough competition in banking sector private bank are ahead in this so SBI is suggested to use
more techno friendly services for the customers.

A bank is always required to promote services or products newly launched ,here SBI is
suggested to promote it within the regular customers group personally also which is already
adopted strategy by its competitor ICICI.

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 A customer always expects prompt response for any question or confusion, ICICI beingfrom
private sector is particular and focused to give immediate possible response to customer which is
the matter of improvements to certain extent in SBI.

CRM (customer relationship management) practises are widely adopted in service sectors,
banking is one of the prominent part of service industry. By asking employees
17
of SBI it is found that many of them are not strongly agree with this so suggestion to SBI is that
they should more sincerely try to develop strong relations with customers by various ways and
means.

After all overall satisfaction of a customer is also very important to win their trust. By asking
to customers of both the banks it was found that SBI customers are less satisfied and the reasons
are employees time taken, some services still have to be technologically updated,and prompt
solution of the complaints, and better CRM practises .If the bank focuses on all these mentioned
points it can win customers preferences to great extent.

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 BIBLOGRAPHY

1. Dr. M.Kumarswami ,Jayprasad D.(2014),Customer Relationship Management in Kaveri

Grameena Bank, Gjra - Global Journal For Research Analysis, Volume : 3 Issue : 2 Feb
2014,pp 29-34

2. N.Satghiya ,(2013),A study on customer relationship management practises (with

reference to salem district)IJSR-,International journal of science and research,Vol-
2,Issue-11,November 2013,pp 89-92

3. Navinkumar Mishra and Vijaykumar Pandey (may 2013) in their paper “customer
satisfaction –A comparison of public and private sector banks of India” International
journal of multidisciplinary research academy(IJMRA), Vol-3, no-5, 2013 ,pp 166-175

4. Uppal R. K (2011), India banking sector reforms: Rationale, efficacy and necessity of
third reforms,’ Business Administration and Management (BAM), Prime Journals, Vol.
1(3), March 10th 2011, pp. 68-72.

5. Jaspal Singh and GagandeepKaur(2011)) in Determinants of Customer Satisfaction: An

Empirical Study of Select Indian (Universal) Banks, The IUP journal of bank
management,vol-10, no.1, 2011, pp.31-42 .

6. Manoj p.k, (2010) ,Determinants of Profitability and Efficiency of Old Private Sector
Banks in India with Focus on Banks in Kerala State: An Econometric Study,
,International research journal of finance and economics, issue-47.2010,pp. 1-15 .

7. Pooja Mengi (2008) , Customer satisfaction with service quality-An empirical study of
public and private sector banks, The IUP journal of management research,vol.-7,
no.9,2009,pp.7-17

8. B S Bodla and RichaVerma Bajaj (2006) , An analysis of private sector banks in India,
The IUP journal of bank management, vol-9, no. 1 and 2,2010,pp.60-82

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 Web references-

1. www.competitionmaster.com
2. www.sbi.co.in
3. www.icicibank.com
4. www.rbi.org.in
5. www.isrj.net
6. www.ideas.repec.org

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 QUESTIONNAIRE
TOPIC NAME :- COMPARATIVE STUDY OF PRIVATE AND PUBLIC
BANK/ICICI& SBI

NAME :- ______________________________________________

ADDRESS:- ____________________________________________

________________________________________________________

________________________________________________________

________________________________________________________

AGE:- ______________

GENDER:- MALE / FEMALE

OCCUPATION:- _________________

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QUESTIONNAIRE FOR BANKERS of ICICI.

Branch office address:

1) Name of the bank:

2) Types of the bank:

A) Public( ) B) private ( )

3) Name of the respondent:

4) Designation: a) manager

b) Staff

c) Employee

d) Other

5) Department: a) HR

b)Finance

c)advertisement

d) other

6) Do you icici bank provide services?

a) YES ( ) b) NO ( )

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 7) Are the customer aware about your services which are providing?.

a)YES ( ) b)NO ( )

8) Are customer satisfied with your icici banking services?

a) YES ( ) b) NO ( )

9) What all are general utility function that your customer mostly used?
a) ATM
b) Locker facility
c) Credit facility

10) Do your banks have public relation officer?

(a) YES ( ) (b) NO ( )

11) Do you consider merchant banking as the next step you expand?

A) yes ( ) b) no ( )

12)Does you’re an impact of innovation on your customer?

a) YES ( ) (b) NO

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 QUESTIONNAIRE FOR BANKERS of SBI.

Branch office address:

1) Name of the bank:

2) Types of the bank:

B) Public( ) B) private( )

3) Name of the respondent:

4) Designation: a)manager

b) Staff

c) Employee

d) other

5) Department: A) HR

B) Finance

c) Advertisement

d) Other

6) Do you sbi bank provide services?

a) YES ( ) b) NO ( )

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 7) Are the customer aware about your services which are providing?.

a) YES ( ) b) NO ( )

8) Are customer satisfied with your SBI banking services?

a) YES ( ) b) NO( )

10) What all are general utility function that your customer mostly used?
A) ATM
B) Locker facility
C) Credit facility

11) Do your banks have public relation officer?

a) YES ( ) (b) NO ( )
b)
12) Do you consider merchant banking as the next step you expand?

A) yes ( ) b) NO( )

13) Does you’re an impact of innovation on your customer?

a) YES ( ) (b) NO ( )

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