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A Comparative study of customer services provided by ICICI and SBI bank in Bangalore A Comparative study of “Customer services provided by ICICI and SBI banks in Bangalore Dissertation Submitted To BANGALORE UNIVERSITY In partial fulfillment of the requirements for the award of the Degree of MASTER OF BUSINESS ADMINISTRATION Submitted by RAKESH KUMAR REG. NO 091GCMA070 UNDER THE GUIDANCE OF Ms Pavithra.S.T Faculty,RVIM R V Institute of Management Page 1
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A Comparative Study of Customer Services Provided by ICICI and SBI Banks in Bangalore

Mar 05, 2015

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A Comparative study of customer services provided by ICICI and SBI bank in Bangalore

A Comparative study of Customer services provided by ICICI and SBI banks in Bangalore Dissertation Submitted To BANGALORE UNIVERSITYIn partial fulfillment of the requirements for the award of the Degree of MASTER OF BUSINESS ADMINISTRATION

Submitted by

RAKESH KUMARREG. NO 091GCMA070

UNDER THE GUIDANCE OF

Ms Pavithra.S.T Faculty,RVIM

RASHTREEYA SIKSHANA SAMITHI TRUST

R V INSTITUTE OF MANAGEMENT#CA 17,36th Cross, 26th Main, 4th T Block, Jayanagar Bangalore-560041

R V Institute of Management Page 1

A Comparative study of customer services provided by ICICI and SBI bank in Bangalore

DECLARATION

I, hereby declare that this dissertation titled A Comparative

study of customer services provided by ICICI and SBI banks in Bangalore is submitted to Bangalore University in partialfulfillment of the requirement for the award of the degree of Master of Business Administration is my original work done under the valuable guidance of Ms. Pavithra S.T., Faculty, RVIM. This dissertation has not been submitted earlier to any other University or Institution for the award of any degree, diploma/certificate or published any time before.

Date: KUMAR Place: Bangalore 091GCMA070

RAKESH

Reg No:

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A Comparative study of customer services provided by ICICI and SBI bank in Bangalore

COLLEGE CERTIFICATE

This is to certify that Mr. RAKESH KUMAR bearing Registration Number 091GCMA070 is a student of 4th semester MBA programme has undertaken Dissertation on the topic A

Comparative study of customer services provided by ICICI and SBI banks in Bangalore under the guidance of Ms. Pavithra.S.T.,Faculty RVIM.

This dissertation is based on the original work and has not formed the basis for award of any degree/diploma/associate ship/prize by Bangalore University or any other University.

Dr. T. V. RAJU Professor & Director

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A Comparative study of customer services provided by ICICI and SBI bank in Bangalore

RVIM

GUIDE CERTIFICATEThis is to certify that Mr. RAKESH KUMAR bearing the register number 091GCMA070 is a student of 4th semester MBA programme has undertaken a Dissertation on the topic A

Comparative study of customer services provided by ICICI and SBI banks in Bangalore under my guidance. This report is beingsubmitted in partial fulfillment of the requirements for the award of the degree of Master of Business Administration.

This dissertation is a original work and has not formed the basis for award of any degree/diploma/associate ship/prize by Bangalore University or any other University.

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A Comparative study of customer services provided by ICICI and SBI bank in Bangalore

Place: Ms.Pavithra.S.T Date:Bangalore Guide Project

ACKNOWLEDGEMENT

The

successful

completion

of

the

DISSERTATION

REPORT has been accomplished with the valuable guidance and support of numerous people. I owe to their constructive support, which sustained my motivation. I take this opportunity to express my profound sense of gratitude to all of them. I express my sincere gratitude to Dr. T.V. Raju, Professor & Director, R.V Institute of Management for his invaluable support during my MBA Course. I express my sincere thanks and heartfelt gratitude to Ms. Pavithra S.T., Faculty, R V Institute of Management, Bangalore for her excellent throughout this and inspiring work. guidance Without and suggestions inspiring project her

encouragement, it would have not been possible for me to bring out this project.R V Institute of Management Page 5

A Comparative study of customer services provided by ICICI and SBI bank in Bangalore

I express my splendid thanks to all my lecturers, librarian for extending library facilities needed to complete this project. Last but not least, my sincere thanks to everybody who has helped me directly or indirectly for making this project report a grand success.

Date: RAKESH KUMAR Place: Reg. No: 091GCMA070 Bangalore

EXECUTIVE SUMMARY:The banking sector in India has made remarkable progress since the economic reforms in 1991. New private sector banks have brought the necessary competition into the industry and spearheaded the changes towards higher utilization of technology, improved customer service and innovative products. Customers are now becoming increasingly conscious of their rights and are demanding more than ever before. The recent trends show that most banks are shifting from a product-centric model to a customer-centric model as customer satisfaction has become one of the major determinants of business growth. In this context, prioritization of preferences and close monitoring of customer satisfaction have become essential for banks. Keeping these in mind, an attempt has been made in this study to analyze the factors that are essential in influencing the investment decision of the customers of the public sector banks. For this purpose, Factor Analysis,R V Institute of Management Page 6

A Comparative study of customer services provided by ICICI and SBI bank in Bangalore

which is the most appropriate multivariate technique, has been used to identify the groups of determinants. Factor analysis identifies common dimensions of factors from the observed variables that link together the seemingly unrelated variables and provides insight into the underlying structure of the data. Secondly, this study also suggests some measures to formulate marketing strategies to lure customers towards banks. The study basically tries to identify the customers are satisfied with their services among ICICI bank and SBI bank and know about the Customer preferences among ICICI and SBI bank.

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A Comparative study of customer services provided by ICICI and SBI bank in Bangalore

TABLE OF CONTENTChapter No. 1

ContentsINTRODUCTION Introduction to Bank & Banking Introduction to Importance of the Bank Introduction to Reason to choose a Bank RESEARCH DESIGN Statement of the problem Review of the literature Objectives of the study Scope of the study Research Methodology Method of collection of data Plan of analysis Limitation of the study INDUSTRY PROFILE Overview the Banking industry PROFILE OF THE SYSTEM/ COMPANY/ORGANIZATION Company profile of SBI Product & Services of SBI Award & Recognitions of SBI Company Profile of ICICI Product & Services of ICICI Award & Recognitions of ICIC DATA ANALYSIS AND INTERPRETATION FINDING CONCLUSION RECOMMENDATIONS BIBLIOGRAPHY ANNEXURE

Page No.10-13

2

14-19

3 4

20-27 28-79

5 6

80-111 112-116 117-118 119-123

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LIST OF TABLETABLE NO. PARTICULARS PAGE NO.

1 2 3 4 5 6 7 8 9 10 11 12 13 14

Table showing Age group of Respondents of SBI customers. Table showing the income level of Respondents. Table showing type of account Respondents having. Table showing respondents take loan from SBI Table showing preference of services by the respondents Table showing the services availed by the SBI customers through Internet banking. Table showing reason to choose SBI bank services Table showing Age group of Respondents of ICICI bank customers Table showing the Income level of Respondents of ICICI bank Table showing type of account Respondents having Table showing Respondents take loan from ICICI bank Table showing preference of services by Respondents Table showing the services availed by the ICICI customers through Internet banking. Table showing reason to choose ICICI bank services.

81 83 85 87 89 91 93 95 97 99 101 103 105 107

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LIST OF GRAPHGRAPH NO. PARTICULARS PAGE NO.

1 2 3 4 5 6 7 8 9 10 11 12 13 14

Graph showing number of respondents with their age groups Graph showing the income level of Respondents Graph showing type of account Respondents having Graph showing respondents take loan from SBI Graph showing preference of services by the respondents Graph showing the services availed by the SBI customers through Internet banking. Graph showing reason to choose SBI bank services Graph showing Age group of Respondents of ICICI bank customers Graph showing the Income level of Respondents of ICICI bank Graph showing type of account Respondents having Graph showing Respondents take loan from ICICI bank Graph showing preference of services by Respondents. Graph Table showing the services availed by the ICICI customers through Internet Banking. Graph showing reason to choose ICICI bank services.

81 83 85 87 89 91 93 95 97 99 101 103 105 107

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Chapter 1 INTRODUCTIO N

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INTRODUCTION:A bank is a financial institution whose primary activity is to act as a payment agent for

customers and to borrow and lend money. It is an institution for receiving, keeping, and lending money. An organization, usually a corporation, chartered by a state or federal government, which does most or all of the following: receives demand deposits and time deposits, honors instruments drawn on them, and pays interest on them; discounts notes, makes loans, and invests in securities; collects checks, drafts, and notes; certifies depositor's checks; and issues drafts and cashier's checks. Banking is business receiving for lending or investment, of deposits of money, from public repayable on demand or otherwise and which draw able by cheque, draw and order. In general terms, Banking is the Process of business activity of accepting and safeguarding money owned by other individuals and entities, and then lending out this money in order to earn a profit. Banks play very important role in the economic life of the nation. The health of the economy is closely related to the soundness of its banking system. Although banks create no new wealth but their borrowing, lending and related activities facilitate the process of production, distribution, exchange and consumption of wealth. In this way they become very effective partners in the process of economic development. Today, modern banks are very useful for the utilization of the resources of the country. The banks are mobilizing the savings of the people for the investment purposes. The savings are encouraged and saving rate increases. If there would be no banks then a great portion of a capital of the country would remain idle. A bank as a matter of fact is just like a heart in the economic structure and the Capital provided by it is like blood in it. As long as blood is in circulation the organs will remain sound and healthy. If the blood is not supplied to any organ then that part would become useless. So if the finance is not provided to Agriculture sector or industrial sector, it willR V Institute of Management Page 12

A Comparative study of customer services provided by ICICI and SBI bank in Bangalore

be destroyed. Loan facility provided by banks works as an incentive to the producer to increase the production. Bank provides necessary funds for executive program in the process of economic development. They collect savings of large masses of people scattered throughout the country, which is the absence of bank world have remained idle and unproductive. These amounts are collected, pooled together and made available to commerce and industry for meting the requirement. This provides finance for successfully carrying on various stages of production as well as distribution. Bank stimulate the habit of savings amount people by the security and interest they offer with these savings which are deposited by people are in position to utilize the deposited amount more productively. The bank increased the transaction capacity of the customers by advancing loans when they require for additional funds to finance their expanded program of transaction. In short, the economic development of a particular country depends on the sound banking system. Banking is also important to business because businesses deposit their extra money here. This way their money is not only safe but also earns interest for them. On the other hand, businesses can borrow money from banks when they need to invest in business. Apart from that Banks also act as guarantee giver in case of creditors and suppliers.

Product and Services offers by Bank:Deposits: A bank accepts deposits from the public. People can deposit their cash balances in either of the following accounts to their convenience:

Fixed Deposit Account: Cash is deposited in this account for a fixed period. The

depositor gets receipts for the amount deposited. It is called Fixed Deposit Receipt. The receipt indicates the name of the depositor, amount of deposit, rate of interest and the period of deposit. This receipt is not transferable. If the depositor stands in need of the amount before the expiry of fixed period, he can withdraw the same after paying the discount to the bank.

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Savings Account: This type of deposit suits to those who just want to keep their

small savings in a bank and might need to withdraw them occasionally. Banks provide a certain rate of interest on the minimum balance kept by the depositor during the month.

Current Account: This type of account is kept by the businessman who are required to withdraw money every new and then. Banks do not pay any interest on this account. Any sum or any number of withdrawals can be presented by such an account holder

Loans Facility: Loans are granted by the banks on securities which can be easily disposed off in the market. When the bank has satisfied itself regarding the soundness of the party, a loan is advanced.

Credit cards: All banks (except the Swiss bank) provide VISA and MasterCard cards that enable individuals to make payments over the Internet or in shops. Mobile Banking: Mobile banking (also known as M-Banking, mbanking, SMS Banking etc.) is a term used for performing balance checks, account transactions, payments etc. via a mobile device such as a mobile phone. Mobile banking today (2007) is most often performed via SMS or the Mobile Internet but can also use special programs called clients downloaded to the mobile device. Internet Banking: Online banking (or Internet banking) allows customers to conduct financial transactions on a secure website operated by their retail or virtual bank, credit union or building society. Core Banking System: Core Banking is a general term used to describe the services provided by a group of networked bank branches. Bank Customers may access their funds and other simple transactions from any of the member branch offices, etc.

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A Comparative study of customer services provided by ICICI and SBI bank in Bangalore

Chapter 2 Research Design

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A Comparative study of customer services provided by ICICI and SBI bank in Bangalore

2.1 Statement of the problem:In todays competition the core objective of all organizations is to satisfy customers. It is the choice of empowered customer to decide the fate of any product or organization. Only those organizations that continuously monitor and meet changing customer needs will win by cutting costs and restructuring for quicker response to the customers demands, all of which will add up to an unmatched competitive edge enabling to conquer tomorrows market place. The mere objective of the study is to interpret the customer services provided by ICICI and SBI bank and to compare with each other. It will help in understanding the preferred customer changing attitude towards the customer services provided to them by ICICI and SBI bank. So the study will give idea about how people are aware about customer services provided by these banks in Bangalore.

2.2 Objectives of the study:1. To understand and compare the services provided by ICICI bank. 2. To understand and compare the services provided by SBI bank. 3. To understand about the customers perception towards ICICI bank and SBI bank. 4. To study customers willingness to take market risk. 5. To know the brand and advertisement influence on customers about ICICI bank and SBI bank.

2.3 Review of The Literature:In May 1991 Stephen F. Borde had studied about the Is the Savings and Loan This article tells about the Saving and loan crisis. Proposed solutions are discussed in the context of the industry as it currently stands. With a somewhat similar liability structureR V Institute of Management Page 16

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to that of banks (mainly short-term deposits), the asset structure of S&Ls is quite different. Whereas banks assets consist of short-term loans, S&L assets consist largely of long-term loans, such as home ownership mortgages. Therefore, in the absence of adequate hedging measures, S&Ls are more vulnerable to interest rate risk, which can lead to lower profits when interest rates rise. In June 29, 2001 Joshua Rosner had studied about the Housing Loan in the New Millennium: A Home Without Equity is Just a Rental with Debt. They studied about the prospects of the U.S. housing/mortgage sector over the next several years. Based on our analysis, we believe there are elements in place for the housing sector to continue to experience growth well above GDP. However, we believe there are risks that can materially distort the growth prospects of the sector. Specifically, it appears that a large portion of the housing sector's growth in the 1990's came from the easing of the credit underwriting process. Such easing includes: The drastic reduction of minimum down payment levels from 20% to 0% A focused effort to target the "low income" borrower. The reduction in private mortgage insurance requirements on high loan to value mortgages. The increasing use of software to streamline the origination process and modify/recast delinquent loans in order to keep them classified as "current". Changes in the appraisal process which has led to widespread over appraisal/over-valuation problems If these trends remain in place, it is likely that the home purchase boom of the past decade will continue unabated. Despite the increasingly more difficult economic environment, it may be possible for lenders to further ease credit standards and more fully exploit less penetrated markets. Recently targeted populations that have historically been denied homeownership opportunities have offered the mortgage industry novel hurdles to overcome. Industry participants in combination with eased regulatory standards and the support of the GSEs (Government Sponsored Enterprises) have overcome many of them. If there is an economic disruption that causes a marked rise in unemployment, the negative impact on the housing market could be quite large. These impacts come in several forms. They include a reduction in the demand for homeownership, a decline in real estate prices and increased foreclosure expenses. These impacts would be exacerbated by the increasing debt burden of the U.S. consumer and the reduction of home equity available in the home. Although we have yet to see any materially negative consequences of the relaxation of credit standards, we believe the riskR V Institute of Management Page 17

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of credit relaxation and leverage can't be ignored. Importantly, a relatively new method of loan forgiveness can temporarily alter the perception of credit health in the housing sector. In an effort to keep homeowners in the home and reduce foreclosure expenses, holders of mortgage assets are currently recasting or modifying troubled loans. Such policy initiatives may for a time distort the relevancy of delinquency and foreclosure statistics. However, a protracted housing slowdown could eventually cause modifications to become uneconomic and, thus, credit quality 31 statistics would likely become relevant once again. The virtuous circle of increasing homeownership due to greater leverage has the potential to become a vicious cycle of lower home prices due to an accelerating rate of foreclosures. In December 2002 Melissa B. Jacoby had studied about the investment Risk beyond a Subprime Crisis: The Role of Delinquency Management. They studied that Public investment in and promotion of homeownership and the home mortgage market often relies on three justifications to supplement shelter goals: to build household wealth and economic self-sufficiency, to generate positive social-psychological states, and to develop stable neighborhoods and communities. Homeownership and mortgage obligations do not inherently further these objectives, however, and sometimes undermine them. The most visible triggers of the recent surge in subprime delinquency have produced calls for emergency foreclosure avoidance interventions (as well as frontend regulatory fixes). Whatever their merit, I contend that a system of mortgage delinquency management should be an enduring component of housing policy. Furtherance of housing and household policy objectives hinges in part on the conditions under which homeownership is obtained, maintained, leveraged, and - in some situations - exited. Given that high leverage or trigger events such as job loss and medical problems play significant roles in mortgage delinquency independent of loan terms, better origination practices cannot eliminate the need for delinquency management. One function of this brief essay is to identify an existing rough framework for managing delinquency. Legal scholarship should no longer discuss mortgage enforcement primarily in terms of foreclosure law and instead should include other debtor-creditor laws such as bankruptcy, industry loss mitigation efforts, and third-party interventions such as delinquency housing counseling. In terms of analyzing this framework, it is tempting to focus on its impact on mortgage credit cost and access or on the absolute number ofR V Institute of Management Page 18

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homes temporarily saved, but my proposed analysis is based on whether the system honors and furthers the goals of wealth building, positive social psychological states, and community development. Because those ends are not inexorably linked to ownership generally or owning a particular home, a system of delinquency management that honors these objectives should strive to provide fair, transparent, humane, and predictable strategies for home exit as well as for home retention. Although more empirical research is needed, this essay starts the process of analyzing mortgage delinquency

2.4 Scope of The Study:The study basically tries to identify the customers are satisfied with their services among ICICI bank and SBI bank and know about the Customer preferences among ICICI and SBI bank. The study was done to individual customer restricted to the city of Bangalore.

2.5 Sample size:For the purpose of this study, the sample size comprise of 100 respondents. ICICI bank - 50 respondents SBI bank 50 respondents

2.6 Sampling method:For the study on customer service provided by public sector banks and private sector banks with reference to SBI and ICICI bank, random sampling method has been adopted.

2.7 Method of collection of data:Primary Data:-Primary data will be collected through questionnaire and personalinterviews.R V Institute of Management Page 19

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Secondary Data:-Secondary data will be collected through various sources such asmagazine, Internet and business journals.

2.8 Analysis method:Analysis is done on the basis of responses taken from the respondents by making use of tables, charts, diagrams and graphs.

2.9 Limitations of the Study: The study is limited to a particular branch of SBI and ICICI bank. Since the time is less the researcher has taken a sample of 100 people and it will not reveal the whole population of a country.

2.10 Contribution expected from the research:The overall effort is to know about the services provided by ICICI and SBI bank and to know the customer preferences towards private sector and public sector banks.

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Chapter 3 INDUSTRY PROFILE

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3. OVERVIEW OF THE BANKING INDUSTRY:Banking in India originated in the last decades of the 18th century. The oldest bank in existence in India is the State Bank of India, a government-owned bank that traces its origins back to June 1806 and that is the largest commercial bank in the country. Central banking is the responsibility of the Reserve Bank of India, which in 1935 formally took over these responsibilities from the then Imperial Bank of India, relegating it to commercial banking functions. After India's independence in 1947, the Reserve Bank was nationalized and given broader powers. In 1969 the government nationalized the 14 largest commercial banks; the government nationalized the six next largest in 1980. Currently, India has 88 scheduled commercial banks 27 public sector banks (that is with the Government of India holding a stake), 29 private banks (these do not have government stake they may be publicly listed and traded on stock exchanges) and 31 foreign banks. They have a combined network of over 53,000 branches and 17,000 ATMs. According to a report by ICRA Limited, a rating agency, the public sector banks hold over 75 percent of total assets of the banking industry, with the private and foreign banks holding 18.2% and 6.5% respectively.

Early History:Banking in India originated in the last decades of the 18th century. The first banks were The General Bank of India, which started in 1786, and the Bank of Hindustan both of which are now defunct. The oldest bank in existence in India is the State Bank of India, which originated in the Bank of Calcutta June 1806, which almost immediately became the Bank of Bombay and the Bank of Madras, all three of which were established under charters from the British East India Company. For many years the Presidency banks acted as quasi-central banks, as did their successors. The three banks merged in 1925 to from the Imperial Bank of India, which upon Indias independence, became the State Bank Of India. Indian merchants in Calcutta established the Union Bank in 1839, but it failed in 1848 as a consequence of the economic crisis of 1848-49. The Allahabad Bank established in 1865 and still functioning today is the oldest joint Stock bank in India. When the American civil war stopped the supply of cotton to Lancashire from the Confederate States, promoters opened banks to finance trading in Indian cotton. With large exposureR V Institute of Management Page 22

A Comparative study of customer services provided by ICICI and SBI bank in Bangalore

to speculative ventures, most of the banks opened in India during that period failed. The depositors lost money and lost interest in keeping deposits with banks. Subsequently banking in India remained the exclusive domain of Europeans for next several decades until the beginning of the 20th century. Foreign banks too started to arrive, particularly in Calcutta in the1860s.The Comptoired Escompte de Paris opened branch in Calcutta in 1860 and another in Bombay in 1862, branches in Madras and Pondicherry then a French colony followed. Calcutta was the most active trading port in India mainly due to the trade of the British Empire and so became a banking center. Around the turn of the 20th Century, the Indian economy was passing through a relative period of stability. Around five decades had elapsed since the Indian Mutiny, and the social industrial and other infrastructure had improved. Indians had established small banks most of which served particular ethnic and religious communities. The presidency banks dominated banking in India but there were also some exchange banks and a number of Indian joint stock banks. All these banks operated in different segments of the economy. The exchange banks mostly owned by Europeans,concentrated on financing foreign trade. Indian joint stock banks were generally undercapitalized and lacked the experience and maturity to compete with the presidency and exchange banks. This segmentation Lord Curzon to observe, in respect of banking it seems we are behind the times. We are like some old fashioned sailing ship, divided by solid wooden bulkheads into separate and cumbersome compartments. By the 1900s, the market expanded with the establishment of banks such as Punjab National Bank, in 1895 in Lahore and Bank of India, in 1906, in Mumbai - both of which were founded under private ownership. Punjab National Bank is the first Swadeshi Bank founded by the leaders like Lala Lajpat Rai, Sardar Dyal Singh Majithia. The Swadeshi movement in particular inspired local businessmen and political figures to found banks of and for the Indian community. A number of banks established then have survived to the present such as Bank of India, Corporation Bank, Indian Bank, Bank of Baroda, Canara Bank and Central Bank of India. The fervor of Swadeshi movement lead to establishing of many private banks in Dakshina Kannada and Udupi district which were unified earlier and known by the name South Canara ( South Kanara ) district. Four nationalizedR V Institute of Management Page 23

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banks started in this district and also a leading private sector bank. Hence undivided Dakshina Kannada district is known as "Cradle of Indian Banking".

From World War I to Independence:The period during the First World War (1914-1918) through the end of the Second World War (1939-1945), and two years thereafter until the independence of India were challenging for Indian banking. The years of the First World War were turbulent, and it took its toll with banks simply collapsing despite the Indian economy gaining indirect boost due to war-related economic activities. At least 94 banks in India failed between 1913 and 1918 as indicated in the following table:

Years

Number of banks that failed

Authorized capital (Rs. Lakhs)

Paid-up Capital (Rs. Lakhs)

1913

12

274

35

1914

42

710

109

1915

11

56

5

1916

13

231

4

1917

9

76

25

1918

7

209

1

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Post-independence:The partition of India in 1947 adversely impacted the economies of Punjab and West Bengal, paralyzing banking activities for months. India's independence marked the end of a regime of the Laissez-faire for the Indian banking. The Government of India initiated measures to play an active role in the economic life of the nation, and the Industrial Policy Resolution adopted by the government in 1948 envisaged a mixed economy. This resulted into greater involvement of the state in different segments of the economy including banking and finance. The major steps to regulate banking included:

In 1948, the Reserve Bank of India, India's central banking authority, was nationalized, and it became an institution owned by the Government of India. In 1949, the Banking Regulation Act was enacted which empowered the Reserve Bank of India (RBI) "to regulate, control, and inspect the banks in India."

The Banking Regulation Act also provided that no new bank or branch of an existing bank could be opened without a license from the RBI:By the 1960s, the Indian banking industry has become an important tool to facilitate the development of the Indian economy. At the same time, it has emerged as a large employer, and a debate has ensued about the possibility to nationalize the banking industry. Indira Gandhi, the-then Prime Minister of India expressed the intention of the GOI in the annual conference of the All India Congress Meeting in a paper entitled "Stray thoughts on Bank Nationalization." The paper was received with positive enthusiasm. Thereafter, her move was swift and sudden, and the GOI issued an ordinance and nationalized the 14 largest commercial banks with effect from the midnight of July 19,1969. Jayaprakash Narayan, a national leader of India, described the step as a "masterstroke of political sagacity." Within two weeks of the issue of the ordinance, the Parliament passed the Banking Companies (Acquisition and Transfer of Undertaking) Bill, and it received the presidential approval on 9 August, 1969. A second dose of nationalization of 6 more commercial banks followed in 1980. The stated reason for the nationalization was to give the government more control of credit delivery. With the second dose of nationalization, the GOI controlled around 91% of theR V Institute of Management Page 25

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banking business of India. Later on, in the year 1993, the government merged New Bank of India with Punjab National Bank. It was the only merger between nationalized banks and resulted in the reduction of the number of nationalized banks from 20 to 19. After this, until the 1990s, the nationalized banks grew at a pace of around 4%, closer to the average growth rate of the Indian economy. The nationalized banks were credited by some, including Home minister P. Chidambaram, to have helped the Indian economy withstand the global financial crisis of 2007-2009.

Liberalization:In the early 1990s, the then Narsimha Rao government embarked on a policy of liberalization, licensing a small number of private banks. These came to be known as New Generation tech-savvy banks, and included Global Trust Bank (the first of such new generation banks to be set up), which later amalgamated with Oriental Bank of Commerce, UTI Bank(now re-named as Axis Bank), ICICI Bank and HDFC Bank. This move, along with the rapid growth in the economy of India, revitalized the banking sector in India, which has seen rapid growth with strong contribution from all the three sectors of banks, namely, government banks, private banks and foreign banks. The next stage for the Indian banking has been setup with the proposed relaxation in the norms for Foreign Direct Investment, where all Foreign Investors in banks may be given voting rights which could exceed the present cap of 10%,at present it has gone up to 49% with some restrictions. The new policy shook the Banking sector in India completely. Bankers, till this time, were used to the 4-6-4 method (Borrow at 4%;Lend at 6%;Go home at 4%) of functioning. The new wave ushered in a modern outlook and tech-savvy methods of working for traditional banks. All this led to the retail boom in India. People not just demanded more from their banks but also received more. Currently (2007), banking in India is generally fairly mature in terms of supply, product range and reach-even though reach in rural India still remains a challenge for the private sector and foreign banks. In terms of quality of assets and capital adequacy, Indian banks are considered to have clean, strong and transparent balance sheets relative to other banks in comparable economies in its region. The Reserve Bank of India is an autonomous body, with minimal pressure from the government. The stated policy of the Bank on theR V Institute of Management Page 26

A Comparative study of customer services provided by ICICI and SBI bank in Bangalore

Indian Rupee is to manage volatility but without any fixed exchange rate-and this has mostly been true. With the growth in the Indian economy expected to be strong for quite some timeespecially in its services sector-the demand for banking services, especially retail banking, mortgages and investment services are expected to be strong. One may also expect M&As, takeovers, and asset sales. In March 2006, the Reserve Bank of India allowed Warburg Pincus to increase its stake in Kotak Mahindra Bank (a private sector bank) to 10%. This is the first time an investor has been allowed to hold more than 5% in a private sector bank since the RBI announced norms in 2005 that any stake exceeding 5% in the private sector banks would need to be vetted by them. In recent years critics have charged that the non-government owned banks are too aggressive in their loan recovery efforts in connection with housing, vehicle and personal loans. There are press reports that the banks' loan recovery efforts have driven defaulting borrowers to suicide. No two banks could have common directors. However, despite these provisions, control and regulations, banks in India except the State Bank of India, continued to be owned and operated by private persons. This changed with the nationalization of major banks in India on 19 July, 1969.

Nationalization:By the 1960s, the Indian banking industry has become an important tool to facilitate the development of the Indian economy. At the same time, it has emerged as a large employer, and a debate has ensued about the possibility to nationalize the banking industry. Indira Gandhi, the-then Prime Minister of India expressed the intention of the GOI in the annual conference of the All India Congress Meeting in a paper entitled "Stray thoughts on Bank Nationalization." The paper was received with positive enthusiasm. Thereafter, her move was swift and sudden, and the GOI issued an ordinance and nationalized the 14 largest commercial banks with effect from the midnight of July 19, 1969. Jayaprakash Narayan, a national leader of India, described the step as a "masterstroke of political sagacity." Within two weeks of the issue of the ordinance, the Parliament passed the Banking Companies (Acquisition and Transfer of Undertaking) Bill, and it received the presidential approval on 9 August, 1969.R V Institute of Management Page 27

A Comparative study of customer services provided by ICICI and SBI bank in Bangalore

A second dose of nationalization of 6 more commercial banks followed in 1980. The stated reason for the nationalization was to give the government more control of credit delivery. With the second dose of nationalization, the GOI controlled around 91% of the banking business of India. Later on, in the year 1993, the government merged New Bank of India with Punjab National Bank. It was the only merger between nationalized banks and resulted in the reduction of the number of nationalized banks from 20 to 19. After this, until the 1990s, the nationalized banks grew at a pace of around 4%, closer to the average growth rate of the Indian economy. The nationalized banks were credited by some, including Home minister P. Chidambaram, to have helped the Indian economy withstand the global financial crisis of 2007-2009.

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Chapter 4 Company PROFILE

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A Comparative study of customer services provided by ICICI and SBI bank in Bangalore

4.1Company Profile of SBI:

Pure Banking Nothing Else

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A Comparative study of customer services provided by ICICI and SBI bank in Bangalore

HISTORY OF SBI:The origins of State Bank of India date back to 1806 when the Bank of Calcutta (later called the Bank of Bengal) was established. In 1921, the Bank of Bengal and two other Presidency banks (Bank of Madras and Bank of Bombay) were amalgamated to form the Imperial Bank of India. In 1955, the controlling interest in the Imperial Bank of India was acquired by the Reserve Bank of India and the State Bank of India (SBI) came into existence by an act of Parliament as successor to the Imperial Bank of India. Today, State Bank of India (SBI) has spread its arms around the world and has a network of branches spanning all time zones. SBI's International Banking Group delivers the full range of cross-border finance solutions through its four wings - the Domestic division, the Foreign Offices division, the Foreign Department and the International Services division. State Bank of India (SBI) is the largest bank in India. If one measures by the number of branch offices and employees, SBI is the largest bank in the world. Established in 1806 as Bank of Calcutta, it is the oldest commercial bank in the Indian subcontinent. SBI provides various domestic, international and NRI products and services, through its vast network in India and overseas. With an asset base of $126 billion and its reach, it is a regional banking behemoth. The government nationalized the bank in 1955, with the Reserve Bank of India taking a 60% ownership stake. In recent years the bank has focused on three priorities, 1), reducing its huge staff through Golden handshake schemes known as the Voluntary Retirement Scheme, which saw many of its best and brightest defect to the private sector, 2), computerizing its operations and 3), changing the attitude of its employees (through an ambitious programme aptly named 'Parivartan' which means change) as a large number of employees are very rude to customers.

Bank of Bengal H.O.R V Institute of Management Page 31

A Comparative study of customer services provided by ICICI and SBI bank in Bangalore

Roots:The State Bank of India traces its roots to the first decade of 19th century, when the Bank of Calcutta, later renamed the Bank of Bengal, was established on 2 June 1806. The government amalgamated Bank of Bengal and two other Presidency banks, namely, the Bank of Bombay (incorporated on 15 April 1840) and the Bank of Madras on 27 January 1921, and named the reorganized banking entity the Imperial Bank of India. All these Presidency banks had been incorporated as joint stock companies, and were the result of the royal charters. The Imperial Bank of India continued as a joint stock company. Until the establishment of a central bank in India the Imperial Bank and its early predecessors served as India's central bank, at least in terms of issuing the currency. The State Bank of India Act 1955, enacted by the Parliament of India, authorized the Reserve Bank of India, which is the central banking organization of India, to acquire a controlling interest in the Imperial Bank of India, which was renamed the State Bank of India on 30 April 1955.

Bank of Madras

Timeline: June 2, 1806: The Bank of Calcutta established. January 2, 1809: This became the Bank of Bengal. April 15, 1840: Bank of Bombay established. July 1, 1843: Bank of Madras established. 1861: Paper Currency Act passed. January 27, 1921: all three banks amalgamated to form Imperial Bank of India.R V Institute of Management Page 32

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July 1, 1955: State Bank of India formed; becomes the first Indian bank to be nationalized. 1959: State Bank of India (Subsidiary Banks) Act passed, enabling the State Bank of India to take over eight former State-associated banks as its subsidiaries. 1980s When Bank of Cochin in Kerala faced a financial crisis, the government merged it with State Bank of India. June 29, 2007: The Government of India today acquired the entire Reserve Bank of India (RBI) shareholding in State Bank of India (SBI), consisting of over 314 million equity shares at a total amount of over 355 billion rupees.

Bank of Bombay

Associate banks:There are seven other associate banks that fall under SBI. They all use the "State Bank of India" name followed by the regional headquarters' name. These were originally banks belonging to princely states before the government nationalized them in 1959. In tune with the first Five Year Plan, emphasizing the development of rural India, the government integrated these banks with the State Bank of India to expand its rural outreach. The State Bank group refers to the seven associates and the parent bank. All the banks use the same logo of a blue keyhole. Currently, the group is merging all the associate banks into SBI, which will create a "mega bank", and one hopes, streamline operations and unlock value.R V Institute of Management Page 33

A Comparative study of customer services provided by ICICI and SBI bank in Bangalore1. 2. 3. 4. 5. 6.

State Bank of Bikaner & Jaipur State Bank of Hyderabad State Bank of Indore State Bank of Mysore State Bank of Patiala State Bank of Saurashtra

State Bank of India Mumbai LHO

Foreign Offices:State Bank of India is present in 32 countries, where it has 131 branches serving the international needs of the bank's foreign customers, and in some cases conducts retail operations. The focus of these offices is India-related business.

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Growth:State Bank of India has often acted as guarantor to the Indian Government, most notably during Chandra Shekhar's tenure as Prime Minister of India. With more than 12240 branches and a further 8000+ associate bank branches, the SBI has extensive coverage. Following its arch-rival ICICI Bank, State Bank of India has electronically networked most of its metropolitan, urban and semi-urban branches under its Core Banking System (CBS), with over 4500 branches being incorporated so far. The bank has the largest ATM network in the country having more than 21000 ATMs. The State Bank of India has had steady growth over its history, though the Harshad Mehta scam in 1992 marred its image. In recent years, the bank has sought to expand its overseas operations by buying foreign banks. It is the only Indian bank to feature in the top 100 world banks in the Fortune Global 500 rating and various other rankings. According to the Forbes 2000 listing it tops all Indian companies.

Fortune Global 500 Ranking 2010:SBI debuted in the Fortune Global 500 at 363 ranks in 2009. In 2010 it moved up to 283. As per fortune 500-2010 following are the data for SBI in $ million. Revenues 28212.8. Profits 2473.3,Assets 323043.9.Stockholders' equity 18519.8 and no of employees are 200,299.

Corporate Details:This site provides comprehensive information on State Bank of India or SBI Bank, the premier Nationalized Indian Bank. State Bank of India is actively involved since 1973 in non-profit activity called Community Services Banking. State Bank of India is India's largest bank amongst all public and private sector banks operating in India. State Bank of India owns and operates the following subsidiaries and Joint Ventures State Bank Of India Credit Card State Bank Of India Online State Bank Of India USA State Bank Of India Services State Bank Of India Mutual Funds R V Institute of Management Page 35

A Comparative study of customer services provided by ICICI and SBI bank in Bangalore State Bank Of India Branch

Banking Subsidiaries:

State Bank of Bikaner and Jaipur (SBBJ) State Bank of Hyderabad (SBH) State Bank of Indore (SBI) State Bank of Mysore (SBM) State Bank of Patiala (SBP) State Bank of Saurashtra (SBS) State Bank of Travancore (SBT)

Foreign Subsidiaries:

State bank of India International (Mauritius) Ltd. State Bank of India (California). State Bank of India (Canada). INMB Bank Ltd, Lagos.

Non- banking Subsidiaries:

SBI Capital Markets Ltd (SBICAP) SBI Funds Management Pvt Ltd (SBI FUNDS) SBI DFHI Ltd (SBI DFHI) SBI Factors and Commercial Services Pvt Ltd (SBI FACTORS) SBI Cards & Payments Services Pvt. Ltd. (SBICPSL)

Performance:During the year, the Company recorded a total turnover of Rs 129.78 billion (US $ 2.89billion),export turnover of Rs 11.42 billion (US $ 0.25 billion), import turnover of Rs 0.38 billion (US$ 8.46 million) and domestic turnover of Rs 117.98 billion (US $ 2.63 billion).As at March31, 2010, the Company had advances outstanding of Rs 30,298 million (US $ 674.79 million),of which the export outstanding stood at Rs 1,955 million (US $ 43.54 million), import outstanding at Rs 99 million (US $ 2.20 million) andR V Institute of Management Page 36

A Comparative study of customer services provided by ICICI and SBI bank in Bangalore

domestic outstanding at Rs 28,244 million (US $ 629.04 million). Gross NPAs stand at Rs 6,352 million (US $ 141.47 million) and Net NPAs stand at Rs 5,068 million (US $ 112.87 million). The amount to be transferred to Reserve Fund is Rs 13.16 million (US $ 0.29 million).

Summary of Financial Results 2009-10 (in Rs. Mn.) 2008-09* (in Rs. Mn.)

Total Turnover Domestic Turnover

1,29,781

1,82,825

1,17,977 International Turnover Advances Outstanding Total Income 4,931 Profit Before Tax 108 Profit After Tax 66 30,294 11,804

1,55,562

27,263

45,139

6,765

1,850 1,219

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* (includes figures of SBI Factors and Commercial Services Private Limited for the Year 2008-09, since merged with the Company) The company recorded a total income of Rs 4,931 million (US $109.82 million), posted a profit before tax of Rs 108 million (US $ 2.41 million) during the current year against a total income of Rs 6,765 million (US $ 133.28 million) and a profit before tax of Rs 1,850 million (US $ 36.47 million) reported in the previous year.

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4.2 State Bank of India offers following product & services to customers:SBI has every product for every need. Listed below are some of its major products and services. 1. Personal Banking:

Personal banking is similar to retail banking. The essence is that the products and services of the bank are tailored to meet individual banking and ancillary needs, including everything from a checking account to investment advice.

A. Deposit schemes

a) Current Account: Minimum Account Opening Balance is Rs 10,000/- Current Accounts are non interest bearing accounts. Most Important Terms & Conditions Overdraft facility available based on credit history Free ATM / Debit Card in the 1st year; charge from 2nd year onwards. No restrictions on number of Payments / Withdrawals No interest paid on Deposits Transfer of account to any branch possible Account maintenance charge applicable No Passbook is issued but Statement of account is issued

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Nomination facility available KYC Norms of RBI to be followed for opening of Account

Saving & Deposit Account:

Savings With Cheque Book

Minimum account opening balance: Rs 5,000/Interest payable on the daily closing balance subject to a minimum of Rs 10,000/- and is credited to the account monthly.

Savings without Cheque Book

Minimum Account Opening Balance: Rs 1,000 Interest Paybale on the minimum daily closing balance subject to a minimum of Rs 2,000/- and is credited to the account monthly. Most Important Terms & Conditions

Savings remain liquid, safe and earn interest Interest calculated on daily product basis Charges applied in case of non-maintenance of Average Quarterly Balance (AQB) Nomination facility available Passbook issued to account holders Cheque Book / ATM Cards available free of cost in the 1st year.Charge from 2nd year onwards.

b) Term Deposits Minimum Account Opening Balance Rs 50,000/- Interest is payable Quarterly, Yearly or at Maturity, at the option of the depositor. A fixed deposit can be used as Security for your loans and Overdraft facilities. Retail Department a) Savings & Current Administration including Account Opening, Cheque Book Issue, Standing Instruction Monetary, Interbank Transfer, Cheque Clearing etc. b) Term Deposits section including account opening and interest payment etc.R V Institute of Management Page 40

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2. Personal finance

a) Housing Loan

A home loan is a secured loan that borrowers obtain in order to purchase a home. Because a home is the largest purchase many individuals will ever make, most borrowers utilize home loans to assist with their home purchase. SBI Home Loans come to you on the solid foundation of trust and transparency built in the tradition of State Bank of India. SBI Offers three types of Home Loan for its customers SBI Easy Home Loan Loan amount upto 30 lacs Interest rate : Present effective rate being 9.75% p.a.

SBI Advantage Home Loan Loan amount above 30 lacs and upto 75 lacs Interest rate : Present effective rate being 10% p.a.

SBI Premium Home Loan Loan amount above 75 lacs and upto 5 crore

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Interest rate

: Present effective rate being 10% p.a.

b) Car Loan

A Loan which is sanctioned for the purchase of an automobile is known as car loan. SBI Offers two types of car Loan for its customers: SBI Easy Car Loan : Maximum Loan amount will be 2.5 times of net annual income.

Loan amount

Spouses income could also be considered provided the spouse becomes a co-borrower in the loan. Loan amount below Rs. 5 lacs will cover under the scheme. Interest rate : Present effective rate being 9.25% p.a

SBI Advantage Car Loan

Loan amount : There is no upper limit for the amount of a car loan. A maximum loan amount of 4 times the net annual income can be sanctioned. Spouses income could also be considered provided the spouse becomes a co-borrower in the loan. Interest rate : Present effective rate being 11% p.a

c) Education Loan

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A term loan granted to Indian Nationals for pursuing higher education in India or abroad where admission has been secured. Loan Amount : For studies in India, maximum Rs. 10 lacs Studies abroad, maximum Rs. 20 lacs Interest Rate : Upto 4 lacs 12% Above 4 lacs and upto 7.5 lacs 13.50% Above 7.5 lacs 12.50%

3.

Services:

State Bank of India offers a wide range of services in the Personal Banking Segment which are indexed here.

a) ATM Services

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State Bank offers you the convenience of over 21,000 ATMs in India, the largest network in the country and continuing to expand fast! This means that you can transact free of cost at the ATMs of State Bank Group and wholly owned subsidiary viz. SBI Commercial and International Bank Ltd., using the State Bank ATM-cum-Debit (Cash Plus) card. KINDS OF CARDS ACCEPTED AT STATE BANK ATMs : Besides State Bank ATM-Cum-Debit Card and State Bank International ATM-CumDebit Cards following cards are also accepted at State Bank ATMs: 1) State Bank Credit Card. 2) Cards issued by other banks displaying Maestro, Master Card, Cirrus, VISA and VISA Electron logos. 3) All Debit/ Credit Cards issued by any bank outside India displaying Maestro, Master Card, Cirrus, VISA and VISA Electron logos. State Bank ATM-cum-Debit (State Bank Cash plus) Card: India's largest bank is proud to offer you unparalleled convenience viz. State Bank ATM-cum-Debit (Cash Plus) card. With this card, there is no need to carry cash in your wallet. You can now withdraw cash and make purchases anytime you wish to with your ATM-cum-Debit Card.

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Get an ATM-cum-Debit card with which you can transact for FREE at any of over 21,000 ATMs of State Bank Group within our country. Transaction Limits: Daily limit of Rs 40,000/- at the ATM Daily limit of Rs 50,000/- at Point of Sale (POS) terminal for debit transactions Combined daily limit of Rs 90,000/b) INTERNET BANKING

www.sbionline.com, the Internet banking portal of our bank, enables its retail bankingcustomers to operate their accounts from anywhere anytime, removing the restrictions imposed by geography and time. It's a platform that enables the customers to carry out their banking activities from their desktop, aided by the power and convenience of the Internet. Using Internet

banking services, you can do the following normal banking transactions online: Funds transfer between own accounts. Third party transfers to accounts maintained at any branch of SBI Group Transfers to accounts in State Bank Group Inter Bank Transfers to accounts with other Banks Online standing instructions for periodical transfer for the above Credit PPF accounts across branches Request for Issue of Demand Draft Request for opening of new accounts Request for closure of Loan AccountsR V Institute of Management Page 45

A Comparative study of customer services provided by ICICI and SBI bank in Bangalore

c) E-RAIL

Book your Railways Ticket Online The facility has been launched wef Ist September 2003 in association with IRCTC. The scheme facilitates Booking of Railways Ticket Online. d) Mobile Banking

State Bank Freedom Your Mobile Your Bank Away from home, balance enquiries can be made and/or money sent to the loved ones or bills can be paid anytime 24x7!!! That is what State Bank Freedom offers -convenient, simple, secure, anytime and anywhere banking. The following functionalities are available:

Funds transfer (within and outside the bank) Interbank Mobile Payment Services (IMPS) Enquiry services (Balance enquiry/ Mini statement) Cheque book request Demat Enquiry Service

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Bill Payment (Utility bills, credit cards, Insurance premium), Donations, Subscriptions

Mobile Top up M Commerce (Top up of Tatasky, BigTV, SunDirect, DishTV connections and receive recharge pins for DigitalTV/Videocon d2h, SBI life insurance premium).

e) Safe Deposit Locker

For the safety of your valuables, we offer safe deposit locker facility at a large number of our branches. There is a nominal annual rent, which depends on the size of the locker and the centre at which the branch is located. The rent is payable in advance for the Financial Year. A copy of the locker agreement regarding operation of the locker can be provided to the locker hirer at the time of allotment of the locker. Most Important Terms & Conditions 1. Annual rental is payable in advance. 2. Rental depends on the size of the lockers and location of the branch via metro/urban or semi-urban/rural 3. One time registration charges for all center is also levied. 4. KYC norms are applicable for locker hirers. 5. Lockers cannot be allotted to minors either singly or jointly with others.

4. INSURANCE:

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SBI Life Insurance is a joint venture between State Bank of India and BNP Paribas Assurance. SBI owns 74% of the total capital and BNP Paribas Assurance the remaining 26%. SBI Life Insurance has an authorized capital of Rs. 2,000 cores and a paid up capital of Rs 1,000 cores. SBI Life offers a wide range of services to you where not only you can track your account, generate premium online. Also you can now pay your premium online with our Electronic Clearing Service which is convenient and minimizes time & effort. The various Insurance plans offered by SBI in Insurance sector are: Protection Plan Saving Plan Unit Linked Plan Child Plan Pension Plan Health Plan

A) Protection Plan:Protection Plans are low cost insurance plans which are specially designed to provide full protection & financial stability to your family in case of any unforeseen events. SBI Life presents range of attractive protection plans so that you can continue to celebrate life without worrying about the uncertainties of life.

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a) SBI Life - Smart shield:

SBI Life - Smart Shield is a traditional non-participating pure term plan, which is a one stop solution that meets all your insurance needs. With Options and benefits specially tailored for those who want best financial protection at an affordable cost, this is the perfect plan from your preferred insurance provider. Now your family stays protected, even when you are not around. Key Features: Establishes a solid foundation for a lifetime of financial security for your family at a significantly low cost. Rewards you for maintaining a healthy lifestyle. Wide variety of plan options to give you completes freedom from your liabilities. Benefits: Death Benefit: Depending on the plan option chosen, the nominee will receive the effective Sum Assured under this policy. Maturity Benefit: No survival benefit available at the end of the term.

b) SBI life Saral Shield:R V Institute of Management Page 49

A Comparative study of customer services provided by ICICI and SBI bank in Bangalore

SBI Life Saral Shield is a traditional non-participating pure term plan, At a nominal cost; Saral Shield provides cover for your family and ensures that a proper safety net is created. Thus, it guarantees that there will be absolutely no compromise on your dreams and ambitions for your loved ones, at all times. Key Features: Hassle-free, convenient and easy issuance. Complete Financial Security at truly lower costs. Wide varieties of plan options to give you complete freedom from your liabilities. Attractive large sum assured rebates.

c) SBI Life Swadhan:

SBI Life - Swadhan is an affordable traditional term Insurance policy with refund of part / Total basic premium paid at the end of the term to the policyholder. As a Maturity benefit, you receive a repayment of your premium contribution towards the policy. Available at a low premium, it can provide security to your loved ones. Key Features: Protection at affordable premium Guaranteed refund of basic premium paid on Survival at the end of the term, depending upon the term of the policy. Life cover comes to you at no cost

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B) Unit Linked Plan:Unit Linked Insurance Plans are long term investment cum protection plans that offer you an opportunity of availing market linked returns while providing life insurance protection. Depending on your risk appetite, you have the option of choosing from host of funds having varied degree of risk exposure. Flexibility and transparency are some of the other attractive features that make ULIPs an attractive long term investment option. To help you fulfill your long term dreams, SBI Life presents you a wide range of ULIPs so that you continue to Celebrate Life!

a) SBI Life Smart Performer:

The equity market may have its ups and downs, but you now have a protective shield that will safeguard your investments, while providing upside potential. SBI Life brings you Smart Performer, a unique Unit Linked, Non Participating insurance product that offers you the twin benefits of Higher than the Highest of the daily NAV Guarantee and the prospect of market upside. It also allows you to protect your gains through Automatic Rebalancing facility and offers you a choice of Single and Limited Premium Payment options. Key Features: Guarantee at maturity based on 5% Higher than Highest Guaranteed NAV during the first seven years or prevailing NAV at Maturity, whichever is higher, subject to conditions. Enjoy the best of both worlds - Guarantee only or Guarantee and Market Upside through our unique Plan offerings - Secure Plan and Secure N Grow Plan respectively.R V Institute of Management Page 51

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Life Insurance coverage with minimum Sum Assured of 10 times or 7 times of your Annualized Premium (AP), based on your age.

b) SBI Life - Saral Maha Anand:

SBI Life - Saral Maha Anand, a unit linked insurance cum savings plan. Getting a Life Insurance policy was never so easy.No medical examination, which means hassle-free coverage. Enjoy the power of liquidity through partial withdrawals. All these benefits at affordable costs, only for you. Key Benefits: No medical examination, Simple joining process Guaranteed Additions of up to 30% of one annual premium, for a 20 year policy term, subject to the Policy being in force till the maturity date. Option to avail additional rider benefit under SBI Life - Accidental Death Benefit Linked Rider.

c) SBI Life Smart Wealth Assure:

Equity Market Performance is affected by many variables like Economic condition, Liquidity, Corporate Performance, Global Markets etc. Thus you are not sure whatR V Institute of Management Page 52

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returns you will get on your hard earned money. SBI Life realises the same and brings to you Smart Wealth Assure which takes care of all these variables and gives you Peace of Mind by providing a Minimum NAV Guarantee Plus Upside, if any. SBI Life - Smart Wealth Assure is a unit Linked non participating Life Insurance Plan. The Plan is further fortified with many power packed features which takes care of your financial needs. Key Features: Option to choose a mix of funds providing Guaranteed Return and Market Linked Returns. Guaranteed Return provided through Return Guarantee Fund (RGF) which guarantees a Minimum Pre-specified NAV, subject to conditions. Pay only once and get the benefits throughout the Policy Term.

d) SBI Life Smart Elite:

SBI Life - Smart Elite is a Unit Linked Insurance plan - an exquisitely crafted product, exclusively for special customers like you. It gives you flexibility to pay premium for limited term or single premium, with the freedom to stay invested and protected for long term. Whats more, you have the power of choosing the option best suited to your needs, at a very competitive rate. All this and more, coming from SBI Life your preferred insurer, adds enormous value to your investments. Key Features: Maximum value addition through excellent allocation rates. Pay premiums only for a limited term of 5, 8 or 10 years or a Single Payment, as per your convenience and enjoy benefits throughout the chosen policy term.R V Institute of Management Page 53

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Accidental Death and Accidental Total and Permanent Disability benefit automatically comes to you as an integral part of the plan.

e) SBI Uint Plus Super:

SBI Life Unit Plus Super is a flexible non participating Unit linked insurance Plan, specially designed to meet your changing requirements at various stages of life. With a wide array of funds, riders and other options, this product gives you the complete freedom to fulfill all your investment and insurance needs. And thats not all; we now also offer you guaranteed additions and choice of payment options, giving you far superior value. Key Features: Guaranteed Additions of up to 75% of one annual regular premium on a regular premium policy, for a 30 year policy term, subject to the Policy being in force till the maturity date. No Policy Administration fee for first 5 years for Regular and Limited Premium Paying Term plans, thereby boosting your fund value. Option to pay Regular/Limited/ Single Premium; Switch or Redirect your premiums.

C) Saving Plan:You may have plans for your loved ones or for yourself. It makes perfect sense to prepare well in advance with saving plan combined with life insurance cover. SBI Lifes plans will help you plan for your savings, be it your childs wedding or education, buying a house or that dream vacation. So that you can Celebrate Life.

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a) SBI Life Money Back:

SBI Life Money Back is a traditional participating savings plan with added advantage of life cover and cash inflow at regular intervals. In order to meet your various financial obligations at crucial junctures, it offers a wide range of terms options with regular payments of Guaranteed Survival benefits made at different durations during the policy term. Key Features: The plan has a number of money back options specially suited to your needs. It has guaranteed cash inflows which can meet your various financial obligations.

Benefits: DeathBenefit: In the unfortunate event of death during the term of the plan, the nominee will receive sum assured plus vested bonuses, (accrued till the date of death), No deductions are made from the claim amount for the survival benefits already paid. Exclusions applicable to the basic cover suicide within the first year. Tax Benefit SBI Life Money Back Plan enjoys Tax benefit u/s 80C and 10(10D) of IT Act* Premiums paid for Critical Illness Benefit qualify for tax exemption under Sec 80D*R V Institute of Management Page 55

A Comparative study of customer services provided by ICICI and SBI bank in Bangalore

b) SBI Life Saral Life:

SBI Life - Saral Life, a traditional, participating endowment plan which helps you to meet any requirement in life and is designed with a differencea take away insurance especially weaved for you with the threads of Simplicity, Availability & value for your money. Key Features: An unique savings cum insurance cover with easy acceptance. Flexibility in Coverage - Sum Assured in options of Rs.1 lakh / Rs.2 lakhs / Rs.3 lakhs. Benefits: Maturity Benefit:- On survival of the life assured, till the policy term, the Sum Assured along with the accrued regular bonus and terminal bonus (if any) is payable. Death Benefit:- In case of unfortunate demise of the life assured within the policy term, the Sum Assured along with the accrued regular bonus and terminal bonus (if any) is payable to the nominee.

c) SBI Life Shubh Nivesh:R V Institute of Management Page 56

A Comparative study of customer services provided by ICICI and SBI bank in Bangalore

SBI Life - Shubh Nivesh is an Endowment product with an option of Whole Life coverage. The basic purpose is to provide Savings, Income and Protection to you and your family. Not only you can save regularly for your future but you also have the flexibility to receive the maturity amount as a lump sum or as a regular income for a chosen period, depending upon your needs. Key Features: A unique Savings cum Protection Plan with the flexibility of Whole Life option as an add-on. Triple benefits of Wealth Creation, Regular Income and Protection under a single plan. Convenience of premium payment options - Single Premium and Regular Premium.

D) Child Plan:As a caring parent you would always want your child to get the very best. To ensure that you fulfill dreams that you may have for your loved ones, financial planning for their secured future is very important. At SBI Life, we understand that. Thats why we present you host of child plans so that you can choose the one that suits your and your childs needs best. Our plans are as accommodating as you are for your child.

a) SBI Life Smart Scholar:

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Life begins afresh when you become a parent. Its a joy you never felt and a feeling you never experienced. When your child takes baby steps towards you, you wonder what else bliss could be? Amidst all this divine happiness, theres a new sense of responsibility that fills your heart. Like you may not really believe that lifes a rose bed or a tender cushion, but you certainly want it to be for your lovely children. At SBI Life, we understand and we provide you with a unique, flexible and all-encompassing solution through our SBI Life Smart Scholar Plan. Key Benefits: Secure your childs future by gaining from the financial markets and much more. Dual protection for your family, in case you are not around Payment of base Sum Assured Inbuilt Premium Payor Waiver benefit to ensure continuance of your benefits. Accident Benefit which includes Accidental Death benefit and Accidental Total and Permanent Disability benefit, is an integral part of the plan.

E) Pension Plan:Increasing life expectancy rate, rising health care costs, absence of social security system in India and disintegration of joint family system are some of the key reasons that makes retirement planning very critical. To help you continue celebrating your life post-retirement to the fullest, SBI Life presents you an array of pension plans which are simple and innovative.

a) SBI Life Life Long Pension Plus:

SBI Life - Lifelong Pension Plus is a unique individual non participating traditional pension plan, which gives you total safety and security while offering you completeR V Institute of Management Page 58

A Comparative study of customer services provided by ICICI and SBI bank in Bangalore

transparency and flexibility. This Plan is a perfect way for you to accumulate your savings and purchase an annuity with it, a time of your choice, to give you regular income. You would agree that all this will surely give you a secure future, and a joyous retirement. Key Features: You have complete freedom to avail of a Pure Pension option or get the added advantage of insurance protection. Complete Transparency: You will know how your premiums are growing each step of the way. At the end of each financial year, the fund will be credited with investment income based on the investment return earned. Guaranteed Additions of 10% of Annual Premium on 15th policy anniversary & 10% of Annual Premium on every 5th policy anniversary thereafter in case of Regular Premium policy whereas for Single Premium policy, 1% of Single Premium on 15th policy anniversary & 1% of Single Premium on every 5th policy anniversary thereafter.

b) SBI Life Smart Pension:

SBI Life -Smart Pension, a unit linked deferred pension plan.With the changing social and economic environment, shifting individual and family needs, it is advisable to follow a dynamic retirement planning process to improve the probability of success of your retirement plan. A unit linked deferred pension plan, which offers you the flexibility to provide for all your retirement goals at one go or as per your convenience, spread over a period of time. Whats more, it provides you a minimum guaranteed return on the gross premiums paid. Key Features: Enjoy the benefit of guaranteed amount at maturity.

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Option to avail pension by paying only one single premium. Phase your retirement income - You have an option to take multiple single premium Policies, at lower costs.

F) Health Plan:Financial planning is incomplete without planning health insurance. Due to todays hectic lifestyle, improper diet, lack of exercise we are at higher risk of contingencies of untimely serious illnesses. Sudden health problems could have deep hole in your pockets. Medical science has advanced by leaps and bounds in the last few decades. Theres a definite need to cover for health insurance to reduce the financial burden.

a) SBI Life Hospital Cash:

Good health is the most valuable asset that we have, but nowadays with increasing levels of stress, negligible physical activity and changing lifestyle our vulnerability to diseases is increasing at an alarming pace. The cost of healthcare is rising everyday and more than the cost of your treatment, indirect costs like - hospital room rent, nursing expenses, post discharge expenses, recuperating expenses, ambulatory charges etc account for a major part of the overall cost incurred. Lack of sufficient savings or a suitable health policy may force you to compromise on the quality of medical treatment. We feel you certainly deserve better. SBI Life - Hospital Cash is a comprehensive plan that covers not only hospitalization

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A Comparative study of customer services provided by ICICI and SBI bank in Bangalore

expenses but also other incidental costs. This plan offers you complete freedom from worries. Key Features: 100% payout from day one of hospitalization without any deductible. Guaranteed coverage up to 75 years. Coverage of Pre-existing diseases after 2 years. Enhanced sum assured and increased payouts on each policy anniversary in case of No claim.

5. DEMAT SERVICES:State Bank of India, which is countrys largest public sector bank, is certainly the most preferred choice of crores of Indians. It provides the facility where you can trade online through demit accounts since this account is one of the prerequisites to start with any kind of trading. SBI Demat account brokerage charge: SBI Demat account brokerage charges vary depending on the amount which one puts in. There are various types of brokerages as well. SBI Demat account turnover per month versus brokerage rates are-

Turnover 0 5 lakh 5 10 lakh 10 25 lakh 25 50 lakh 50 75 lakh 75 lakh 2 Crore 2 Crore and above

Brokerage 0.50% 0.45% 0.40% 0.35% 0.30% 0.25% 0.15%

SBI Demat account turnover versus brokerage rates for Intraday trading are-

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A Comparative study of customer services provided by ICICI and SBI bank in Bangalore

Turnover < 25 lakh 25 50 lakh 50 lakh 1.5 Crore 1.5 3 Crore 3 6 Crore 6 10 Crore Above 10 Crore

Brokerage 0.15% 0.12% 0.10% 0.08% 0.07% 0.06% 0.05%

6. CUSTOMER RELATATION SERVICES:The SBI customer care service is probably the best customer service offered by various banks in India and across the world. The SBI customer care service is presumably the most excellent in comparison to other banks. The bank through its customer service deals with all kinds of difficulties faced by the clients in relation to the banking services offered by SBI. The customer care executive pay attention to the problems put out by the bank customers and provides them with an applicable and relevant solution to their doubts concerning the bank products and services. The SBI always aims for providing necessary assistance and information to its clients and attempts to cater to all the banking needs regarding the highest quality of its services. SBI has a 24 hour customer care helpline specially devoted to entertain all the queries, suggestion and problems etc. put up by the banks customers. One can dial up the customer care helpline and esquire about any of the product and services including that on the home loan and other offered by the bank. One can also get information about the terms and conditions laid down by the bank about the various services and products offered by the bank.

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4.3 Awards & Recognitions

Adjudged, Bank of The Year 2009, India by The Banker b Magazine for the second year in succession. Awarded Best Bank - Large, and Most Socially Responsible Bank from Business World Best Bank Awards 2009. The Bank bagged the BEST BANK 2009 Award by Business India. Adjudged the Most Trusted Brand 2009 - Economic Times, Brand Equity. Bagged the awards for Most Preferred Bank, Most Preferred Credit Card and Most Preferred Home Loan Brand from CNBC AWAAZ Consumer Awards, Sept 09.

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A Comparative study of customer services provided by ICICI and SBI bank in Bangalore

Awarded Visionaries of Financial Inclusion Year 2009 by Financial Information Network & Operations Ltd. Awarded Technology Bank of the Year in recognition of outstanding achievements in banking technology IBA Banking Technology Awards 2009. Selected as the winner of Golden Peacock National Training Award for the year 2009 by the Golden Peacock Awards Jury. Awarded the Strongest Banks in Asia Award 2010 for the Asia- Pacific region under The Asian Banker Excellence in Retail Financial Services Awards 2010. Awarded the Best Microfinance Award for 2009 under The Asian Banker Excellence in Retail Financial Services Awards 2010.

4.4 Company Profile of ICICI:

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ICICI BANK | khayaal aapka

Khayaal Aapka:Over the past decade ICICI Bank has redefined the banking landscape. Through a deep understanding of customer needs, it has leveraged technology to introduce several innovations to make banking simple and convenient for the consumer. Continuing with our commitment towards deepening our relationship with our customers, we have undertaken many initiatives to strengthen the customer experience through multiple touch points such as bank branches, internet banking, mobile banking and phone banking. In addition we have continued to offer products and services that have been thoughtfully designed, keeping the consumer in mind. Khayaal aapka is a reflection of this commitment that we have towards our customers. Khayaal aapka embodies our relationships with customers that go beyond transactions it is our commitment to treat our customers fairly, show empathy towards customer needs and create and deliver products and services that make a difference to our customers' lives.

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ICICI Bank is India's second-largest bank with total assets of Rs. 3,849.70 billion (US$ 82 billion) at March 31, 2010 and profit after tax Rs. 40.25 billion for the year ended March 31, 2010. The Bank has a network of about 2,529 branches and 6,000 ATMs in India and presence in 19 countries. ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialized subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital and asset management. The Bank currently has subsidiaries in the United Kingdom, Russia and Canada, branches in United States, Singapore, Bahrain, Hong Kong, Sri Lanka, 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. ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and the National Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE).

History:ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution, and was its wholly-owned subsidiary. ICICI's shareholding in ICICI Bank was reduced to 46% through a public offering of shares in India in fiscal 1998, an equity offering in the form of ADRs listed on the NYSE in fiscal 2000, ICICI Bank's acquisition of Bank of Madura Limited in an all-stock amalgamation in fiscal 2001, and secondary market sales by ICICI to institutional investors in fiscal 2001 and fiscal 2002. 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 subsidiariesR V Institute of Management Page 66

A Comparative study of customer services provided by ICICI and SBI bank in Bangalore

and affiliates like ICICI Bank. In 1999, ICICI become the first Indian company and the first bank or financial institution from non-Japan Asia to be listed on the NYSE. After consideration of various corporate structuring alternatives in the context of the emerging competitive scenario in the Indian banking industry, and the move towards universal banking, the managements of ICICI and ICICI Bank formed the view that the merger of ICICI with ICICI Bank would be the optimal strategic alternative for both entities, and would create the optimal legal structure for the ICICI group's universal banking strategy. The merger would enhance value for ICICI shareholders through the merged entity's access to low-cost deposits, greater opportunities for earning fee-based income and the ability to participate in the payments system and provide transactionbanking services. The merger would enhance value for ICICI Bank shareholders through a large capital base and scale of operations, seamless access to ICICI's strong corporate relationships built up over five decades, entry into new business segments, higher market share in various business segments, particularly fee-based services, and access to the vast talent pool of ICICI and its subsidiaries. In October 2001, the Boards of Directors of ICICI and ICICI bank approved the merger of ICICI and two of its wholly-owned retail finance subsidiaries, ICICI Personal Financial Services Limited and ICICI Capital Services Limited, with ICICI bank. The merger was approved by shareholders of ICICI and ICICI bank in January 2002, by the High Court of Gujarat at Ahmadabad in March 2002, and by the High Court of Judicature at Mumbai and the Reserve Bank of India in April 2002. Consequent to the merger, the ICICI group's financing and banking operations, both wholesale and retail, have been integrated in a single entity. ICICI bank has formulated a Code of Business Conduct and Ethics for its directors and employees. ICICI bank (formerly Industrial Credit and Investment Corporation of India) is India's largest private sector bank in market capitalization and second largest overall in terms of assets. Bank has total assets of about USD 100 billion (at the end of March 2010), a network of over 2,529 branches, 22 regional offices and 49 regional processing centers, about 6000 ATMs (at the end of March 2010), and 24 million customers (at the end of March 2010). ICICI bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and specialized subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital and asset management. (These data are dynamic.) ICICI Bank is also theR V Institute of Management Page 67

A Comparative study of customer services provided by ICICI and SBI bank in Bangalore

largest issuer of credit cards in India. ICICI Bank has got its equity shares listed on the stock exchanges at Kolkata and Vadodara, Mumbai and the National Stock Exchange of India Limited, and its ADRs on the New York Stock Exchange (NYSE). The Bank is expanding in overseas markets and has the largest international balance sheet among Indian banks. ICICI Bank now has wholly-owned subsidiaries, branches and representat

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