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“A comparative study of the Financial Performance of SBI and ICICI bank” A Project report Submitted in PARTIAL fulfillment of the requirements Of B.Com (A/F) under Nagaland University Submitted to: Submitted by: Miss Ami Jain (Supervisor) Ranju Kumari Jaiswal Assistant professor B.Com (A/F) Dept. of Commerce UniversityRoll No CH13190064 S.D. Jain Girl’s college Regd. No- Dimpaur, Nagaland. S.D. Jain Girl’s college
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A Comparative Study of the Financial Performance of SBI and ICICI Bank

Jul 08, 2016

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Page 1: A Comparative Study of the Financial Performance of SBI and ICICI Bank

“A comparative study of the Financial Performance of SBI and ICICI bank”

A Project reportSubmitted in PARTIAL fulfillment of the requirements

Of B.Com (A/F) under Nagaland University

Submitted to: Submitted by:

Miss Ami Jain (Supervisor) Ranju Kumari JaiswalAssistant professor B.Com (A/F)Dept. of Commerce UniversityRoll No CH13190064S.D. Jain Girl’s college Regd. No-Dimpaur, Nagaland. S.D. Jain Girl’s college Dimpaur, Nagaland.

1

CONTENTS

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S.NO TOPIC PAGE NO.

1 TITLE OF PROJECT

2 CERTIFICATE

3 DECLARATION

4 ACKNOWLEDGEMENT

5 ABSTRACT

6 INTRODUCTION OF SBI BANK

7 INTRODUCTION OF ICICI BANK

8 OBJECTIVE OF THE STUDY

9 RESEARCH METHODOLOGY

10 LIMITATION OF THE STUDY

11 LITERATURE REVIEW

12 DATA COLLECTION

13 ANALYSIS AND INTERPRETATION

14 FINDINGS AND CONCLUSION

15 REFERENCE

16 QUESTIONARRIE

CERTIFICATE

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This is to certify that the project report entitled “A comparative study of the financial comparison of SBI and ICICI bank” is submitted by Ranju kumari Jaiswal in fulfillment of the requirement for the award of degree of B.Com (A/F) in S.D. Jain girl’s college under Nagaland University Isa record of the candidate’s own work carried out under my supervision. The matter embodied in this project is original and not used for any other purpose.

Date: Supervisor:

2

DECLARATION

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This is to certify that the project report entitled “A comparative study of the financial comparison of SBI and ICICI bank” is submitted in fulfillment of the requirement for the award of degree of B.Com (A/F) in S.D. Jain girl’s college under Nagaland University, Lumami, Nagaland. The work is original and due acknowledgement has been made in the text to all other material used.

Date: Name of Student: Ranju Kumari Jaiswal

Approved by:

(Supervisor)

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ACKNOWLEDGEMENT

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The success and final outcome of this project required a lot of guidance and assistance from many people and I am extremely fortunate to have got all this along the completion of my project work. Whatever I have is only due to such guidance and assistance and I will not forget to thank them.I respect and thank Miss Ami Jain, for giving me an opportunity to do the project work of “A comparative study of the financial comparison of SBI and ICICI bank” and providing us all support and guidance which made me complete this project on time. I am extremely grateful to him for providing such great support and guidance though he had busy schedule. I am extremely grateful to all those person who have positively helped me and customers who respond my questionnaire, around whom the whole project cycle revolves.

Name : Ranju Kumari Jaiswal

Roll No. 44

N.U Roll No. CH13190064

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ABSTRACT

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Banking Sector plays an important role in economic development of a country. The banking system of India is featured by a large network of bank branches, serving many kinds of financial services of the people. The State Bank of India, popularly known as SBI is one of the leading bank of public sector in India. SBI has 14 Local Head Offices and 57 Zonal Offices located at important cities throughout the country. ICICI Bank is second largest and leading bank of private sector in India. The Bank has 2,533 branches and 6,800 ATMs in India. The purpose of the study is to examine the financial performance of SBI and ICICI Bank, public sector and private sector respectively. The research is descriptive and analytical in nature. The data used for the study was entirely secondary in nature. The present study is conducted to compare the financial performance of SBI and ICICI Bank on the basis of ratios such as credit deposit, net profit margin etc. The period of study taken is from the year 2010-11 to 2014-15. The study found that SBI is performing well and financially sound than ICICI Bank but in context of deposits and expenditure ICICI bank has better managing efficiency than SBI. Based on the study, it can be said that SBI have an extensive operation than ICICI Bank.

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LIST OF TABLES AND FIGURES WITH PAGE NUMBER

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S. NO TITLE PAGE NO

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1 Table 1.1 Credit deposit ratio

Fig. no. 1.1 Credit deposit ratio2 Table 1.2   Interest expenses to total expenses

Fig.no.1.2  Interest expenses to total expenses

3 Table 1.3 Interest income to total income

Fig.no.1.3 Interest income to total income4 Table 1.4 Other income to total income

Fig.no.1.4 Other income to total income

5 Table-1.5 Net profit margin

Fig. no.1.5 Net profit margin6 Table no.1.6 Net worth ratio

Fig.no.1.6 Net worth ratio

7 Table 1.7 Growth of profitFig.no.1.7 Growth of profit

8 Table 1.8 Growth in total income

Fig.no.1.8 Growth in total income

9 Table 1.9 Total expenditureFig.no.1.9 Total expenditure

10 Table 1.10-Total advances

Fig.no.1.10 Total advances

11 Table 1.11 Total deposits

Fig. no.1.11 Total deposits Table

LITERATURE REVIEW

1. Dr. Jayesh Pravinchandra Vora, BBA,M.Com, Ph.D. [November 2013] made a comparative study of financial performance of Bank of Baroda and Punjab National

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Bank from 2007-08-2011-12 and found that Punjab National Bank is performing better than Bank of Baroda.

2. Ashwini Kumar Mishra et. Al (2013) concluded that private sector banks are at the top of the list with their performance in terms of soundness being best and public sector bank will head towards convergence faster than private sector banks.

3. Dr. K. Madhusudhana Rao, Associate professor, L. university, Green fields, Andhra Pradesh [June 2014] made a comparative analysis on the performance of state Bank of India and HDFC from 2008-09 to 2012-13 and found that State Bank of India is performing well and sound than HDFC but in context of deposits and expenditure both State bank of India and HDFC has better managing efficiency.

4. Pooja Sharma, Hantala, Assistant Professor, Department of MBA,E-Max Group of Institutions Ambala[February 2014] made a comparative analysis of the financial performance of ICICI bank and State Bank of India from 2008-09 to 2012-13 and found that State Bank of India is performing better than ICICI bank as it is able to generate more loan from its deposit to its customers.

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INTRODUCTION

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The banking industry plays an important role in the economic development of a 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 which the country’s economy is moving. India has about 88 commercial banks including 31 private banks, 27 public sector banks, and 38 foreign banks and in total, 53,000 bank branches, and 17,000 ATMs are servicing the nation. Public sector banks dominate the segment with 75 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.State Bank of India (SBI)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 4,724 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 BankThis is the second largest private sector bank in India having 2,552 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 18 countries across the world including UK, Canada, Russia, and others.

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Statement of the problemPerformance and efficiency of commercial bank are the key element of efficiency and efficacy of countries financial system. The broad objective of the banking sector

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reforms in India has been to increase efficiency and profitability of the banks. Prior to banking reforms, the industry was a near monopoly dominated by public sector bank. Therefore this study attempts to apply profitability ratio, solvency ratio and management efficiency ratio on SBI and ICICI Bank in order to compare their efficiency and solvency position.

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OBJECTIVE OF THE STUDY

I. To compare the financial performance of State Bank of India and ICICI Bank.

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ii. To know and compare the profitability position of State Bank of India and ICICI Bank.iii. To know and compare the managerial efficiency of State Bank of India and ICICI Bank.iv. To offer findings and suggestions to enhance the financial performance of State Bank of India and ICICI Bank.

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RESEARCH METHODOLOGY5.1 Research Design

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Descriptive Research Design is used for the study and it is essentially a fact-finding approach. It aims to explain the characteristics of an individual or group characteristics and to determine the frequency with the same things occurs.5.2 Sample DesignDeliberate sampling technique is used for the study. This sampling method involves purposive or deliberate selection of particular units of the world for constituting a sample that represents the population.5.3 Selection of the Sample UnitsBanking sector in India is considered one of the fastest growing financial institutions in the world. Using purposive sample, State Bank of India and ICICI Bank were selected as the sample units for the study. The sample units selected were considered one of the successful units in the banking sector.5.4 Data CollectionThe data were collected through annual report from sources that are secondary in nature such as internet, magazines, websites, books, and journals.5.5 Period of studyThis study covers a period of five years, i.e., from 2010-11 to 2014-155.6 Tools AppliedThe data collected were moderated for the study. The major tools applied for the analysis of the data are ratios, percentages, and t-test.

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PERIODITY OF STUDY

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The project “A Study on comparative financial performance of SBI and ICICI Bank” was undertaken during the period of 45 days as a part of my internal examination.

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LIMITATION OF THE STUDY

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Due to constraints of time and resources, the study is likely to suffer from certain limitations. Some of these are mentioned here under so that the findings of the study may be understood in a proper perspective. The limitations of the study are:

The study is based on the secondary data and the limitation of using secondary data may affect the results.

The secondary data was taken from the annual reports of the SBI and ICICI Bank. It may be possible that the data shown in the annual reports may be window dressed which does not show the actual position of the banks.

Financial analysis is mainly done to compare the growth, profitability and financial soundness of the respective banks by diagnosing the information contained in the financial statements. Financial analysis is done to identify the financial strengths and weaknesses of the two banks by properly establishing relationship between the items of Balance Sheet and Profit & Loss Account. It helps in better understanding of banks financial position, growth and performance by analyzing the financial statements with various tools and evaluating the relationship between various elements of financial statements.

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FOR THIS PURPOSE THE FOLLOWING PARAMETERS HAVE BEEN STUDIED

1) Credit deposit ratio.2) Interest expenses to total expenses.3) Interest income to total income.4) Other income to total income.5) Net profit margin.6) Net worth ratio.7) Percentage change in net profit.8) Percentage change in total income.9) Percentage change in total expenditure.10) Percentage change in deposit.11) Percentage change in advances.

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CREDIT DEPOSIT RATIO:

Credit deposit ratio is the proportion of loan asset created by a bank from the deposit received. Credits are the loan and advances granted by the bank. In other words, it is the amount lend by the bank to a person or an organization which is recovered later on, interest is charged from the borrower.

TABLE 1.1 - CREDIT DEPOSIT RATIO(IN PERCENT)

YEAR SBI ICICI2010-11 77.57 84.992011-12 74.97 91.442012-13 73.56 90.042013-14 76.32 87.812014-15 78.50 92.23MEAN 76.184 89.302CGR 1.19 8.51

Source: Annual Reports of SBI and ICICI from 2010-11 to 2014-15FIG. NO. 1.1- CREDIT DEPOSIT RATIO

14Table 1.1 depicts that over the course of five financial periods of study the mean of Credit Deposit Ratio in ICICI was higher (89.302%) than in SBI (76.184%). But the

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Compound Growth Rate in SBI lowers 1.19% than in ICICI (8.51%). In case of SBI the credit deposit ratio was highest in 2014-15 and lowest in 2012.13. But in case of ICICI Credit Deposit Ratio was highest in 2014-15and lowest in 2010-11. This shows that ICICI Bank has created more loan assets from its deposits as compared to SBI.

INTEREST EXPENSES TO TOTAL EXPENSES:-

Interest Expenses to Total Expenses reveals the expenses incurred on interest in proportion to total expenses. Banks accepts deposits from savers and pay interest on these accounts. This payment of interest is known as interest expenses. Total expenses include the amount spent in the form of staff expenses, interest expenses, overhead expenses and other operating expenses etc.

TABLE 1.2:- INTEREST EXPENSES TO TOTAL EXPENSES(IN PERCENT)

YEAR SBI ICICI

2010-11 61.85 66.135

2011-12 63.27 64.10

2012-13 61.62 60.71

2013-14 54.93 60.70

2014-15 57.90 65.19

MEAN 59.9 65.36

CGR -6.38 -1.46

Source: Annual Reports of SBI and ICICI from 2010-11 to 2014-15.

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FIG.NO.1.2:- INTEREST EXPENSES TO TOTAL EXPENSES

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The table 1.2 shows that the ratio of interest expenses to total expenses in SBI was highly volatile it increased from 61.85 per cent to 63.27 per cent during the period 2010-11 to 2011-12. Afterwards it was decreased till 2013-14 and then again increased to 57.90 per cent. The ratio of interest expenses to total expenses in ICICI was also decreased from 66.135 per cent to 64.10 per cent during the period 2010-11 to 2011-12. It remain stable from 2011-12 to 2012-2013 but Further it was increased to 65.19 per cent in 2014-15. It has been found that the share of interest expenses in total expenses was higher in case of SBI as compared to ICICI, which shows that people preferred to invest their savings in SBI than ICICI.

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INTEREST INCOME TO TOTAL INCOME:-

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Interest Income to Total Income shows the proportionate contribution of interest income in total income. Banks lend money in the form of loans and advances to the borrowers and receive interest on it. This receipt of interest is called interest income. Total income includes interest income, non-interest income and operating income.

TABLE 1.3:-INTEREST INCOME TO TOTAL INCOME IN SBI AND ICICI(IN PERCENT)

YEAR SBI ICICI

2010-11 83.89 77.61

2011-12 83.40 79.29

2012-13 82.58 77.90

2013-14 84.49 78.51

2014-15 88.12 80.92

MEAN 84.49 78.84

CGR 5.04 4.26

Source: Annual Reports of SBI and ICICI from 2010-11 to 2014-15.

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FIG.NO.1.3 INTEREST INCOME TO TOTAL INCOME IN SBI AND ICICI

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The table 1.3 represents that the ratio of interest income to total income in SBI and ICICI both is quite stable and volatile over the years. The growth rate of SBI is 5.04 while that of ICICI is 4.26. Thus, the proportion of interest income to total income in SBI was higher than that of ICICI, which shows that people preferred SBI to take loans and advances.

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OTHER INCOME TO TOTAL INCOME:

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Other income to total income reveals the proportionate share of other income in total income. Other income includes non interest income and operating income. Total income includes interest income, non interest income and operating income.

TABLE 1.4:-OTHER INCOME TO TOTAL INCOME IN SBI AND ICICI (IN PERCENT)

YEAR SBI ICICI

2010-11 16.10 22.38

2011-12 16 20.70

2012-13 17 22.09

2013-14 16 21.48

2014-15 11 19.07

MEAN 15.22 21.44

CGR -31.6 -14.7

Source: Annual Reports of SBI and ICICI Bank from 2010-11 to 2014-15

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FIG.NO.1.4 OTHER INCOME TO TOTAL INCOME IN SBI AND ICICI

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The table 1.4 shows that the ratio of other income to total income was decreased from 16.10 per cent in 2010-11 to 11.00 per cent in 2014-15 in case of SBI. However, the share of other income in total income of ICICI was also decreased from 22.38 per cent in 2010-11 to 19.07 per cent 2014-15. The table shows that the ratio of other income to total income was relatively higher in ICICI (21.44%) as compared to SBI (15.22%) during the period of study.

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NET PROFIT MARGIN:-

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Net Profit Margin reveals the financial results of the business activity and efficiency of management in operations. The table 5.8 shows the net profit margin in SBI and ICICI during the Period 2010-11 to 2014-15.

TABLE-1.5:-NET PROFIT MARGIN IN SBI AND ICICI(IN PERCENT)

YEAR SBI ICICI

2010-11 12.64 11.81

2011-12 13.11 11.45

2012-13 10.54 13.64

2013-14 8.55 17.52

2014-15 9.73 17.45

MEAN 10.91 14.37

CGR 23.02 47.7

Source: Annual Reports of SBI and ICICI from 2010-11 to 2014-15

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FIG. NO.1.5 NET PROFIT MARGIN IN SBI AND ICICI

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The table 1.5 reveals that the ratio of net profits to total income of ICICI was varied from 11.81 per cent to 17.45 percent whereas in case of SBI it is not stable. It increased to 13.11 percent from 12.64 percent in 2011-12 then further decreased to 10.54 percent in 2012-13 and 8.55 percent in 2013-14 and finally increased to 9.73 percent in 2014-15 during the period of 5 years of study. However, the net profit margin was higher in ICICI (14.37%) as compared to SBI (10.91%) during the period of study. But it was continuously decreased from 2010-11 to 2014-15 in ICICI. Thus, the ICICI has shown comparatively lower operational efficiency than SBI.

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NET WORTH RATIO:- Net worth Ratio is used for measuring the overall efficiency of a firm. This ratio establishes the relationship between net profit and the proprietor’s funds.

TABLE 1.6 NET WORTH RATIO  (IN PERCENT)

YEAR SBI ICICI2010-11 13.70 8.942011-12 15.74 7.582012-13 13.91 7.792013-14 12.84 9.352014-15 14.36 10.70MEAN 14.11 8.87CGR 4.87 19.68

Source: Annual Reports of SBI and ICICI from 2010-11 to 2014-15

FIG.NO.1.6 NET WORTH RATIO

It is clear from the table 1.6 that the net worth ratio of SBI was increased from 13.70 per cent to 14.36 per cent during 2007-08 to 2011-12, and decreased in 2009-10 and 2010-2011. Whereas the ratio was increased from 8.94 per cent to 10.70 percent in ICICI. The table showed that the net worth ratio was higher in SBI (14.11%) as compared to ICICI (8.87%) during the period of study, which revealed that SBI has utilized its resources more efficiently as compared to ICICI.

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GROWTH OF PROFIT:-

Net profit Ratio is used for measuring the profitability of the firm. It is calculated by dividing net profit by net sales multiplied by 100. It establishes the relationship between the net profit and sales.

TABLE 1.7 GROWTH OF PROFIT IN SBI AND ICICI

(IN CRORES)

YEAR SBI ICICI

PROFIT % CHANGE PROFIT % CHANGE

2010-11 6729 NILL 4157.73 NILL

2011-12 9121 35.5 3758.13 -9.61

2012-13 9161 49 4024.98 7.10

2013-14 8265 -9.8 5151.38 27.9

2014-15 11707 42 6465.26 25.50

MEAN 8996.6 4711.49

CGR 73.97 55.49

Source: Annual Reports of SBI and ICICI from 2010-11 to 2014-15

24FIG.NO.1.7 GROWTH OF PROFIT IN SBI AND ICICI

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The table 1.8 highlights that the mean value of net profit was higher in SBI (Rs. 8996.6 crores) as compared to that in ICICI (Rs. 4711.9 crores) during the period of study. Further the growth rate of Net Profits was also higher in SBI (73.97%) than that in ICICI (55.49%) during the study period. The table also shows that the annual growth rate of profit in SBI was highest in the year 2012-13 and was negative (-9.8%) in the year 2013-14. In ICICI, the annual growth rate of profit was highest in the year 2013-14(27.9%) and was negative in the year 2011-12 (-9.61%).

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TOTAL INCOME:- The total income indicates the rupee value of the income earned during a period. The higher value of total income represents the efficiency and good performance.

TABLE 1.8 GROWTH IN TOTAL INCOME OF SBI AND ICICI(IN CRORES)

YEAR SBI ICICI

INCOME %CHNAGE INCOME %CHANGE

2010-11

58348.74 NILL 39667.19 NILL

2011-12

76479.78 31 39210.31 -1.15

2012-13

85962.07 12.3 32999.36 -15.8

2013-14

96329.45 12.06 33082.96 0.25

2014-15

120872.90 25.4 41450.75 25.2

MEAN 87598.58 37282.114

CGR 107.15 4.49

Source: Annual Reports of SBI and ICICI from 2010-11 to 2014-15.

26FIG.NO.1.8 GROWTH IN TOTAL INCOME OF SBI AND ICICI

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The table 1.9 highlights that the mean value of total income was higher in SBI (Rs. 87,598.58 Crores) as compared to that in ICICI (Rs. 37282.114 crores) during the period of study. However the rate of growth regarding total income was higher in SBI (107.15 %) than in ICICI (4.49 %) during the period of study

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TOTAL EXPENDITURE:-

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The total expenditure reveals the proportionate share of total expenditure spent on the development of staff, interest expended and other overheads.

TABLE 1.9 TOTAL EXPENDITURE OF SBI AND ICICI(IN CRORES)

YEAR SBI ICICI

EXPENDITURE %CHNAGE

EXPENDITURE %CHANGE

2010-11

51619.622 NILL 35509.47 NILL

2011-12

67358.55 30.4 35452.17 0.16

2012-13

76796.02 14.01 28974.37 -18.2

2013-14

88959.12 15.83 27931.58 -3.59

2014-15

109186.99 22.73 34985.50 25.25

MEAN 78784.06 32570.61

CGR 111.52 -1.47

Source: Annual Reports of SBI and ICICI from 2010-11 to 2014-15. FIG.NO.1.9 TOTAL EXPENDITURE OF SBI AND ICICI

The table 1.10 discloses that the mean value of total expenditure was higher in SBI (Rs. 78,784.06 crores) as compared to that in ICICI (Rs. 32570.61 crore) during the period of study. But the rate of growth regarding expenditure in ICICI was (-1.47 %) than that

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in SBI (111.52%) during the same period. It is clear that ICICI is successful in decreasing their total expenditure as compared to SBI. The table also highlights that the annual growth rate of expenditure in SBI was highest (30.04) in the year 2011-12 and was lowest (14.01) in the year 2012-13. In ICICI, the annual growth rate of expenditure was negative in the year 2012-13 and 2013-14 i.e. (-18.20) and (-3.59) respectively. Hence it is clear that ICICI is more efficient as compared to SBI in terms of managing expenditure.

ADVANCES:- Advances are the credit facility granted by the bank. In other words it is the amount borrowed by a person from the Bank. It is also known as “Credit‟ granted where the money is disbursed and recovery of which is made later on.

TABLE 1.10- TOTAL ADVANCES OF SBI AND ICICI(IN CRORES)

YEAR SBI ICICI

ADVANCES %CHNAGE ADVANCES %CHANGE2010-

11416768.20 NILL 225616.08 NILL

2011-12

542503.20 30.16 218310.85 -3.25

2012-13

631914.15 16.48 181205.60 -16.6

2013-14

756719.45 19.75 216365.90 19.40

2014-15

867578.89 14.6 253727.66 17.26

MEAN 646578.89 224645

CGR 108.16 12.45

Source: Annual Reports of SBI and ICICI from 2010-11 to 2014-15.

29FIG.NO.1.10- TOTAL ADVANCES OF SBI AND ICICI

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Table 1.9 presents the mean of Advances of SBI was higher (646,578.89) as compared to mean of Advances of ICICI (224,645). Rate of growth was also higher in SBI (108.16 %) than in ICICI (12.45%). Table also shows the per cent Change in Advances over the period of 5 years. In case of SBI Advances were continuously increased (with a decreasing trend) over the period of study. However Advances in ICICI were decreased till 2009-10 but these were increased in the subsequent years.

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DEPOSITS:- Deposit is the amount accepted by bank from the savers in the form of current deposits, savings deposits and fixed deposits and interest is paid to them.

TABLE 1.11-TOTAL DEPOSITS OF SBI AND ICICI(IN CRORES)

YEAR SBI ICICI

DEPOSIT %CHNAGE DEPOSIT %CHANGE2010-11 537403.94 NILL 244431.05 NILL

2011-12 742073.13 38.08 218347.82 -10.6

2012-13 804116.23 8.36 202016.60 -7.40

2013-14 933932.81 16.14 225602.11 11.6

2014-15 104647.36 11.7 255499.96 13.2

MEAN 812234 229179

CGR 94.20 4.52

Source: Annual Reports of SBI and ICICI from 2010-11 to 2014-15

31Fig. NO.1.11 TOTAL DEPOSITS OF SBI AND ICICI

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Table 1.11 presents the mean of Deposits of SBI was higher (812,234) as compared to mean of deposits of ICICI (229,179%). However the rate of growth was higher in SBI (94.20%) than that in ICICI (4.52%) during the period of study. Table also shows the per cent Change in Deposits over the period of 5 years. In case of SBI Deposits were continuously fluctuating over the period of study. However deposits in ICICI were decreased in 2011-12 and 2012-13 but these were increased in the year 2013-14 and 2015-15 with 11.6% and 13.2% respectively.

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FINDINGS AND CONCLUSIONS:-

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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 2012-13 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 2012-13 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 2010-11 to 2012-13. 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.

ANALYSIS AND INTERPRETATION

Page 37: A Comparative Study of the Financial Performance of SBI and ICICI Bank

1. Where do you have your account?

It shows the maximum numbers of people have their bank account in SBI and less number of people has their bank account in ICICI Bank.

2.Which of the following type banking account do you have?

ACCOUNT TYPE(SBI) NO OF RESPONDENTS %CURRENT 10 50SAVINGS 5 25JOINT 3 15LOAN 2 10

ACCOUNT TYPE(ICICI) NO OF RESPONDENTS %CURRENT 4 40SAVINGS 2 20JOINT 3 30LOAN 1 10

BANK No of Respondents PercentageSBI 20 67ICICI 10 33

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40%

20%

30%

10%

ICICICURRENT SAVINGSJOINT LOAN

                                                By seeing the graph, we can find that maximum number of people have current account in SBI I.e. 50%. Savings account 25%, Joint account 15 %, and loan account 10%. Whereas in ICICI 40% people have current account, 20 % have saving account, 30% have joint account and 10 % people have loan account.

Q3. Does your bank create any recreation facility for the customers?

Response(SBI) No. of customer %

YES 17 85

NO 3 15

Response(ICICI) No. of customer %

Yes 7 70

no 3 30

85%

15%

SBI CUSTOMERSYES NO

70%

30%

ICICI CUSTOMERSYES NO

Not much difference is shown regarding recreational facilities to the customer between two banks. However SBI has the leading role so far.

39Q4. Do you think that your bank caters all your banking needs?

Page 39: A Comparative Study of the Financial Performance of SBI and ICICI Bank

RESPONSE(SBI) NO OF CUSTOMERS %YES 17 85NO 3 15

RESPONSE(ICICI) NO OF CUSTOMERS %YES 8 80NO 2 20

85%

15%

SBI PERCENTAGEYES NO

80%

20%

ICICI PERCENTAGEYES NO

Not much difference is shown regarding bank caters all your banking needs to the customer. However SBI has the leading role so far.

Q5. Which bank would you chose regarding transaction?

Bank No.of Respondent PercentageSBI 23 76ICICI 7 24

Page 40: A Comparative Study of the Financial Performance of SBI and ICICI Bank

There is much difference is shown regarding transaction between two banks therefore SBI has far better than ICICI Bank.

Q6. Which bank has ease of access (both branch and ATM)?

Bank No.of Respondent PercentageSBI 17 85ICICI 3 15

The graph shows that out of two banks SBI Bank provides more ease of access regarding Branch and ATM.

7. Are you satisfied with the service provided by the bank?

Response (SBI) No.of Respondent PercentageVery Satisfied 1 5Satisfied 17 85Somewhat Satisfied

1 5

Not Satisfied 1 5

Response (ICICI) No.of Respondent PercentageVery Satisfied - -Satisfied 5 50Somewhat Satisfied

4 40

Not Satisfied 1 10

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5%

85%

5% 5%

sbivery satisfied satisfiedsomewhat satisfied not satisfied

50%

40%

10%

icicivery satisfied satisfied somewhatsatisfied not satisfied

By seeing this graph we can find that SBI Customers are more satisfied than the ICICI bank customers.

8. Do they charge unnecessarily for not maintaining minimum balance in your account?

Page 42: A Comparative Study of the Financial Performance of SBI and ICICI Bank

Response(SBI) No. Of Customers Percentage %Yes 3 15No 17 85

Response(ICICI) No. Of Customers Percentage %Yes 8 80No 2 20

15%

85%

sbiyes

80%

20%

iciciyes no

By seeing this graph we can find that the ICICI Bank charge unnecessarily for not maintaining minimum balance in your account than SBI Bank.

QUESTIONARRIE (Survey on customer’s satisfaction)

Page 43: A Comparative Study of the Financial Performance of SBI and ICICI Bank

The performance of bank also depends upon the satisfaction level of the customers. Therefore a survey was conducted on the customers of SBI and ICICI bank using a questionnaire. The questionnaire is a well-structured of 10 questions conducted on 30 customers of each bank. Questionnaire is on the study of the comparison of financial performance of SBI and ICICI bank.Name:Occupation:Address:Sex :

Q1. Where do you have your account?   a. SBI b. ICICI

Q2. Which of the following type banking account do you have?a. Current account b. Savings accountb. Joint account d. Loan account

Q3. Does your bank create any recreation facility for the customers?a. Yes b. No

Q4. Do you think that your bank caters all your banking needs?a. Yes b. No

Q5. Which bank would you chose regarding transaction?a. SBI b. ICICI

Q6. Which bank has ease of access (both branch and ATM)?a. SBI b. ICICI

Q7. Are you satisfied with the service provided by the bank?a. Very satisfied b. Satisfiedb. Somewhat satisfied d. Not satisfied

Q8. Do they charge unnecessarily for not maintaining minimum balance in your account?

a. Yes b. No

REFERENCES:-

Page 44: A Comparative Study of the Financial Performance of SBI and ICICI Bank

Maheshwari & Maheshwari, Banking Law and Practices, Himalaya Publishing Pvt Ltd, Allahabad, pp.152.

Pandey, I.M. Financial Management, Vikas Publishing. House Pvt. Ltd. 2002, pp. 633.

Study material, Financial Management Unit 17, IGNOU, New Delhi. pp.6 Trend and progress of banking, RBI, pp.22-23 Gaylord A Freeman, “ The Problem of Adequate bank Capital”, quoted by

Howard D. Crosse in his book on Management Policies for Commercial Banks, pp. 158.

Development Research Group Study, No. 22, Department of Economic Analysis and Policy, Reserve Bank of India, Mumbai September 20, 2000.

Financial year report of SBI 2007-08 to 2011-12. SBI bulletin publication 2012. Financial year report of ICICI Bank 2007-08 to 2011-12. ICICI Bank bulletin publication 2012 RBI statistical table relating to banks 2011-12.

Information Memorandum SBI and ICICI Bank annual report 2007-12.