Summar Internship Report on SBI vs ICICI Bank

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INDEX

CONTENT PAGE NO

Acknowledgement.............................................................................................. 3

Executive Summary............................................................................................ 4

Indian Bank Industry.......................................................................................... 5

Introduction of SBI............................................................................................. 7

Product & Services .............................................................................................. 12

Management ....................................................................................................... 14

Introduction of ICICI.......................................................................................... 15

History.................................................................................................................. 16

Product & service................................................................................................. 28

SWOT ANALYSIS

SBI....................................................................................................................... 28

ICICI..................................................................................................................... 29

Current Scenario

Q-4 Statement of SBI..........................................................................................

Balance sheet...................................................................................................... 37

ICICI BANK STATE BANK OF INDIA

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P& L Account....................................................................................................... 37

ICICI BANK CURENT.......................................................................................... 39

Profit & loss account............................................................................................ 40

Balance sheet...................................................................................................... 41

Summary Balance Sheet .................................................................................... 45

Analysis of project............................................................................................... 48

Statement of problem........................................................................................ 49

Research Objective............................................................................................ 50

Significance and scope..................................................................................... 51

Research methodology..................................................................................... 53

Analysis of data................................................................................................. 55

Findings............................................................................................................ 60

Suggestion & Recommendation........................................................................ 62

Conclusion......................................................................................................... 64

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Acknowledgement

I am honoured to express my gratitude to all the people who were always a great help to me

in achieving this milestone. I could have never completed this task without valuable

contributions from my teachers and faculty. I express my heart full indebtness and owe a

deep sense of gratitude to all of them including my guides Dr.Parul Nagar and Mr. Farhan

Shek.

I am extremely thankful to Prof. V. Subramaniam for his valuable guidance throughout this

project. Above all I extend my sincere thanks to all my colleagues and friends without whom

it was never possible to complete this assignment.

Thanks

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Executive Summary

In the growing global competition, the productivity of any business concern depends upon

the behavioural aspect of consumers. This topic deals with the customer’s perception

towards other Advance Product from SBI and ICICI investment. This project report contains 5

different chapters. The report begins with the introduction to company, its area of operation,

its organization structure, its achievements, etc.

The second chapter is the introduction to the Advance Product which gives a brief idea

regarding ADVANCE PRODUCT . It also contains the objectives and limitations of the

project.

The third chapter, methodology adopted in preparing this report is mentioned. It covers the

sample procedure, types of data used and the data collection method.

The fourth chapter comprehensive coverage of forecasting concepts and techniques which

shows the analysis of data through tabulation, computation and graphical representation of

data collected from survey.

The fifth chapter deals with the findings, suggestion & conclusion part which is very much

important after analysis is made.

As we know that only analysis and conclusion is not the end of a research, so in the sixth

chapter the recommendation part is covered which are made after a depth study of the

analysis part of thesis.

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In each of the five chapters as described above, every chapter has been scheduled in a

manner so as to enable the reader to appreciate the contents easily. The report is supported

by figures and data wherever necessary with a view to assist the reader in developing a clear

cut understanding of the topic.

I hope this report will be extremely useful for those it is meant. Constructive and healthy

suggestions for improvements of the report will be great fully appreciated.

KUMAR SHAKTI RANJAN

STATE BANK OF INDIA ICICI BANK

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INDIAN BANKING INDUSTRY

The banking section will navigate through all the aspects of the Banking System in India.

It will discuss upon the matters with the birth of the banking concept in the country to new

players adding their names in the industry in coming few years.

The banker of all banks, Reserve Bank of India (RBI), the Indian Banks Association (IBA)

and top 20 banks like IDBI, HSBC, ICICI, ABN AMRO, etc. has been well defined under three

separate heads with one page dedicated to each bank.

However, in the introduction part of the entire banking cosmos, the past has been well

explained under three different heads namely:

History of Banking in India

Nationalisation of Banks in India

Scheduled Commercial Banks in India

The first deals with the history part since the dawn of banking system in India. Government

took major step in the 1969 to put the banking sector into systems and it nationalised 14

private banks in the mentioned year. This has been elaborated in Nationalisationof Banks in

India. The last but not the least explains about the scheduled and unscheduled banks in

India. Section 42 (6) (a) of RBI Act 1934 lays down the condition of scheduled commercial

banks. The description along with a list of scheduled commercial banks are given on this

page.


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Introduction of SBI

The origin of the State Bank of India goes back to the first decade of the nineteenth century

with the establishment of the Bank of Calcutta in Calcutta on 2 June 1806. Three years later

the bank received its charter and was re-designed as the Bank of Bengal (2 January 1809).

A unique institution, it was the first joint-stock bank of British India sponsored by the

Government of Bengal. The Bank of Bombay (15 April 1840) and the Bank of Madras (1 July

1843) followed the Bank of Bengal. These three banks remained at the apex of modern

banking in India till their amalgamation as the Imperial Bank of India on 27 January 1921.

Primarily Anglo-Indian creations, the three presidency banks came into existence either as a

result of the compulsions of imperial finance or by the felt needs of local European commerce

and were not imposed from outside in an arbitrary manner to modernise India's economy.

Their evolution was, however, shaped by ideas culled from similar developments in Europe

and England, and was influenced by changes occurring in the structure of both the local

trading environment and those in the relations of the Indian economy to the economy of

Europe and the global economic framework.

The State Bank of India, the country’s oldest Bank and a premier in terms of balance sheet

size, number of branches, market capitalization and profits is today going through a

momentous phase of Change and Transformation – the two hundred year old Public sector

behemoth is today stirring out of its Public Sector legacy and moving with an agility to give

the Private and Foreign Banks a run for their money.


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The bank is entering into many new businesses with strategic tie ups – Pension Funds,

General Insurance, Custodial Services, Private Equity, Mobile Banking, Point of Sale

Merchant Acquisition, Advisory Services, structured products etc – each one of these

initiatives having a huge potential for growth.

The Bank is forging ahead with cutting edge technology and innovative new banking models,

to expand its Rural Banking base, looking at the vast untapped potential in the hinterland and

proposes to cover 100,000 villages in the next two years.

It is also focusing at the top end of the market, on whole sale banking capabilities to provide

India’s growing mid / large Corporate with a complete array of products and services. It is

consolidating its global treasury operations and entering into structured products and

derivative instruments. Today, the Bank is the largest provider of infrastructure debt and the

largest arranger of external commercial borrowings in the country. It is the only Indian bank

to feature in the Fortune 500 list.

The Bank is changing outdated front and back end processes to modern customer friendly

processes to help improve the total customer experience. With about 8500 of its own 10000

branches and another 5100 branches of its Associate Banks already networked, today it

offers the largest banking network to the Indian customer. The Bank is also in the process of

providing complete payment solution to its clientele with its over 8500 ATMs, and other

electronic channels such as Internet banking, debit cards, mobile banking, etc.


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With four national level Apex Training Colleges and 54 learning Centres spread all over the

country the Bank is continuously engaged in skill enhancement of its employees. Some of

the training programes are attended by bankers from banks in other countries.

The bank is also looking at opportunities to grow in size in India as well as Internationally. It

presently has 82 foreign offices in 32 countries across the globe. It has also 7 Subsidiaries in

India – SBI Capital Markets, SBICAP Securities, SBI DFHI, SBI Factors, SBI Life and SBI

Cards - forming a formidable group in the Indian Banking scenario. It is in the process of

raising capital for its growth and also consolidating its various holdings.

Throughout all this change, the Bank is also attempting to change old mindsets, attitudes and

take all employees together on this exciting road to Transformation. In a recently concluded

mass internal communication programme termed ‘Parivartan’ the Bank rolled out over 3300

two day workshops across the country and covered over 130,000 employees in a period of

100 days using about 400 Trainers, to drive home the message of Change and

inclusiveness. The workshops fired the imagination of the employees with some other banks

in India as well as other Public Sector Organizations seeking to emulate the Program.

An important turning point in the history of State Bank of India is the launch of the first Five

Year Plan of independent India, in 1951. The Plan aimed at serving the Indian economy in

general and the rural sector of the country, in particular. Until the Plan, the commercial banks

of the country, including the Imperial Bank of India, confined their services to the urban

sector. Moreover, they were not equipped to respond to the growing needs of the economic


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revival taking shape in the rural areas of the country. Therefore, in order to serve the

economy as a whole and rural sector in particular, the All India Rural Credit Survey

Committee recommended the formation of a state-partnered and state-sponsored bank.

The All India Rural Credit Survey Committee proposed the take over of the Imperial Bank of

India, and integrating with it, the former state-owned or state-associate banks. Subsequently,

an Act was passed in the Parliament of India in May 1955. As a result, the State Bank of

India (SBI) was established on 1 July 1955. This resulted in making the State Bank of India

more powerful, because as much as a quarter of the resources of the Indian banking system

were controlled directly by the State. Later on, the State Bank of India (Subsidiary Banks) Act

was passed in 1959. The Act enabled the State Bank of India to make the eight former State-

associated banks as its subsidiaries.

The State Bank of India emerged as a pacesetter, with its operations carried out by the 480

offices comprising branches, sub offices and three Local Head Offices, inherited from the

Imperial Bank. Instead of serving as mere repositories of the community's savings and

lending to creditworthy parties, the State Bank of India catered to the needs of the

customers, by banking purposefully. The bank served the heterogeneous financial needs of

the planned economic development.

Branches

The corporate center of SBI is located in Mumbai. In order to cater to different functions,

there are several other establishments in and outside Mumbai, apart from the corporate

center. The bank boasts of having as many as 14 local head offices and 57 Zonal Offices,

located at major cities throughout India. It is recorded that SBI has about 10000 branches,

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well networked to cater to its customers throughout India.

ATM Services

SBI provides easy access to money to its customers through more than 8500 ATMs in India.

The Bank also facilitates the free transaction of money at the ATMs of State Bank Group,

which includes the ATMs of State Bank of India as well as the Associate Banks – State Bank

of Bikaner & Jaipur, State Bank of Hyderabad, State Bank of Indore, etc. You may also

transact money through SBI Commercial and International Bank Ltd by using the State Bank

ATM-cum-Debit (Cash Plus) card.

Subsidiaries

The State Bank Group includes a network of eight banking subsidiaries and several non-

banking subsidiaries. Through the establishments, it offers various services including

merchant banking services, fund management, factoring services, primary dealership in

government securities, credit cards and insurance.

.


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The eight banking subsidiaries are:

State Bank of Bikaner and Jaipur (SBBJ)

State Bank of Hyderabad (SBH)

State Bank of India (SBI)

State Bank of Indore (SBIR)

State Bank of Mysore (SBM)

State Bank of Patiala (SBP)

State Bank of Saurashtra (SBS)

State Bank of Travancore (SBT)

Products And Services

Personal Banking

SBI Term Deposits SBI Loan For Pensioners

SBI Recurring Deposits Loan Against Mortgage Of Property

SBI Housing Loan Loan Against Shares & Debentures

SBI Car Loan Rent Plus Scheme

SBI Educational Loan Medi-Plus Scheme

Other Services

Agriculture/Rural Banking

NRI Services

ATM Services


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Demat Services

Corporate Banking

Internet Banking

Mobile Banking

International Banking

Safe Deposit Locker

RBIEFT

E-Pay

E-Rail

SBI Vishwa Yatra Foreign Travel Card

Broking Services

Gift Cheques

The CNN IBN, Network 18 recognized this momentous transformation journey, the State

Bank of India is undertaking, and has awarded the prestigious Indian of the Year – Business,

to its Chairman, Mr. O. P. Bhatt in January 2008

INVESTMENT

MUTUAL FUND EQUITY SCHEMESDABT SCHEMESBALANCED SCHEMESEXCHANGE TREADED SCHEMES

LIFE INSURENCE Unit Linked Products: Pension Products:Pure Protection

Products:Protection cum Savings Products:Money Back

Scheme Products:SBI Life - SARAL ULIP Protection

Plans: Specialized Term Insurance:Retirement

Solutions: SBI Life - Swadhan (Group): SBI Life -

Dhanaraksha Plus: SBI Life - Grameen Shakti, Health


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Products:

EQUITY ALL TYPES

SBI Mutual Fund is India’s largest bank sponsored mutual fund and has an enviable track

record in judicious investments and consistent wealth creation.

The fund traces its lineage to SBI - India’s largest banking enterprise. The institution has

grown immensely since its inception and today it is India's largest bank, patronised by over

80% of the top corporate houses of the country.

SBI Mutual Fund is a joint venture between the State Bank of India and Société Générale

Asset Management, one of the world’s leading fund management companies that

manages over US$ 500 Billion worldwide.

Mumbai, August 26, 2008 – SBI Life Insurance has achieved a unique distinction of ranking

third globally in terms of number of Million Dollar Round Table (MDRT) members. Of the

40,000 SBI Life Insurance Advisors, 1,662 have qualified for the prestigious MDRT

membership. Among these, 124 qualified for Court of Table (COTs) and 20 for Top of Table

(TOTs).

STATE BANK OF INDIA

RANK COMPANY NAME COUNTRY2008

MEMBERS

1 Samsung Life Ins Korea 2,486

2 New York Life USA 2,167

3 SBI Life Insurance India 1,662

4 Northwestern Mutual USA 1,411

5 AIA-Hong Kong Hong Kong 1,159

11 LIC of India India 595

14 HDFC Standard Life India 536

22 Max New York Life India 343

68 ICICI Pru India 125

69 Birla Sunlife India 124

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Management

The bank has 14 directors on the Board and is responsible for the management of the

Bank’s business. The board in addition to monitoring corporate performance also carries out

functions such as approving the business plan, reviewing and approving the annual budgets and

borrowing limits and fixing exposure limits. Mr. O. P. Bhatt is the Chairman of the bank. The five-

year term of Mr. Bhatt will expire in March 2011. Prior to this appointment, Mr. Bhatt was

Managing Director at State Bank of Travancore. Mr. Bhatt has more than 30 years of experience

in the Indian banking industry and is seen as futuristic leader in his approach towards technology

and customer service. Mr. Bhatt has had the best of foreign exposure in SBI. We believe that the

appointment of Mr. Bhatt would be a key to SBI’s future growth momentum. Mr. T S Bhattacharya

is the Managing Director of the bank and known for his vast experience in the banking industry.

Recently, the senior management of the bank has been broadened considerably. The positions

of CFO and the head of treasury have been segregated, and new heads for rural banking and for

corporate development and new business banking have been appointed. The management’s

thrust on growth of the bank in terms of network and size would also ensure encouraging

prospects in time to come.

INTRODUCTION OF ICICI BANK

ICICI Group offers a wide range of banking products and financial services to corporate and retail

customers through a variety of delivery channels and through its specialised group companies,

subsidiaries and affiliates in the areas of personal banking, investment banking, life and general

insurance, venture capital and asset management. With a strong customer focus, the ICICI Group

Companies have maintained and enhanced their leadership position in their respective sectors.


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ICICI Bank is India's second-largest bank with total assets of Rs. 3,793.01 billion (US$ 75 billion) at

March 31, 2009 and profit after tax Rs. 37.58 billion for the year ended March 31, 2009. The Bank

has a network of 1,451 branches and about 4,721 ATMs in India and presence in 18 countries.

HITORY

1955:

The Industrial Credit and Investment Corporation of India Limited (ICICI) incorporated at the

initiative of the World Bank, the Government of India and representatives of Indian industry,

with the objective of creating a development financial institution for providing medium-term

and long-term project financing to Indian businesses. Mr.A.Ramaswami Mudaliar elected as

the first Chairman of ICICI Limited.

ICICI emerges as the major source of foreign currency loans to Indian industry. Besides

funding from the World Bank and other multi-lateral agencies, ICICI was also among the first

Indian companies to raise funds from international markets.

1956:

ICICI declared its first dividend of 3.5%

1961:

The first West German loan of DM 5 million from Kredianstalt obtained

1967:


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ICICI made its first debenture issue for Rs.6 crore, which was oversubscribed

1972:

The second entity in India to set up merchant banking services

1977:

ICICI sponsored the formation of Housing Development Finance Corporation. Managed its

first equity public issue

1986:

ICICI became the first Indian institution to receive ADB Loans.

ICICI, along with UTI, set up Credit Rating Information Services of India Limited, India's first

professional credit rating agency.

ICICI promotes Shipping Credit and Investment Company of India Limited

1993:

Promoted TDICI - India's first venture capital company


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1994:

ICICI Securities and Finance Company Limited in joint venture with J. P. Morgan set up

1996:

ICICI Asset Management Company set up.

ICICI Bank set up.

ICICI Ltd became the first company in the Indian financial sector to raise GDR

2000:

ICICI launched retail finance - car loans, house loans and loans for consumer durables.

ICICI becomes the first Indian Company to list on the NYSE through an issue of American

Depositary Shares

2001:

ICICI Bank became the first commercial bank from India to list its stock on NYSE.

ICICI Bank announces merger with Bank of Madura.


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The Boards of ICICI Ltd and ICICI Bank approved the merger of ICICI with ICICI Bank. 2002:

ICICI Ltd merged with ICICI Bank Ltd to create India's second largest bank in terms of

assets.

ICICI assigned higher than sovereign rating by Moody's. : ICICI Bank launched India's first

CDO (Collateralised Debt Obligation) Fund named Indian Corporate Collateralised Debt

Obligation Fund (ICCDO Fund).

"E Lobby", a self-service banking centre inaugurated in Pune. It was the first of its kind in

India.

ICICI Bank launched Private Banking.

1100-seat Call Centre set up in Hyderabad

ICICI Bank Home Shoppe, the first-ever permanent aggregation and display of housing

projects in the county, launched in Pune,

ATM-on-Wheels, India's first mobile ATM, launched in Mumbai.

2003:


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The first Integrated Currency Management Centre launched in Pune.

ICICI Bank announced the setting up of its first ever offshore branch in Singapore.

The first offshore banking unit (OBU) at Seepz Special Economic Zone, Mumbai, launched.

ICICI Bank's representative office inaugurated in Dubai.

Representative office set up in China.

ICICI Bank's UK subsidiary launched.

India's first ever "Visa Mini Credit Card", a 43% smaller credit card in dimensions launched.

ICICI Bank subsidiary set up in Canada.

Temasek Holdings acquired 5.2% stake in ICICI Bank.

ICICI Bank became the market leader in retail credit in India.

2005:

ICICI Bank and CNBC TV 18 announced India's first ever awards recognising the

achievements of SMEs, a pioneering initiative to encourage the contribution of Small and

Medium Enterprises to the growth of Indian economy.


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ICICI Bank opened its 500th branch in India.

ICICI Bank introduced partnership model wherein ICICI Bank would forge an alliance with

existing micro finance institutions (MFIs). The MFI would undertake the promotional role of

identifying, training and promoting the micro-finance clients and ICICI Bank would finance the

clients directly on the recommendation of the MFI.

ICICI Bank introduced 8-8 Banking wherein all the branches of the Bank would remain open

from 8a.m. to 8 p.m. from Monday to Saturday.

ICICI Bank introduced the concept of floating rate for home loans in India.

First rural branch and ATM launched in Uttar Pradesh at Delpandarwa, Hardoi.

"Free for Life" credit cards launched wherein annual fees of all ICICI Bank Credit Cards were

waived off.

ICICI Bank and Visa jointly launched mChq – a revolutionary credit card on the mobile

phone.

Private Banking Masters 2005, a nationwide Golf tournament for high networth clients of the

private banking division launched. This event is the largest domestic invitation amateur golf

event conducted in India.

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First Indian company to make a simultaneous equity offering of $1.8 billion in India, the

United States and Japan.

Acquired Ivestitsionno Kreditny Bank of Russia.

ICICI Bank became the largest bank in India in terms of its market capitalisation

2007:

Introduced a new product - 'NRI smart save Deposits' – a unique fixed deposit scheme for

nonresident Indians.

Representative offices opened in Thailand, Indonesia and Malaysia.

ICICI Bank became the largest retail player in the market to introduce a biometric enabled

smart card that allow banking transactions to be conducted on the field. A low-cost solution,

this became an effective delivery option for ICICI Bank's micro finance institution partners.

Financial counseling centre Disha launched. Disha provides free credit counseling, financial

planning and debt management services.

Bhoomi puja conducted for a regional hub in Hyderabad, Andhra Pradesh.


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ICICI Bank's USD 2 billion 3-tranche international bond offering was the largest bond offering

by an Indian bank.

Sangli Bank amalgamated with ICICI Bank.

ICICI Bank raised Rs 20,000 crore (approx $5 billion) from both domestic and international

markets through a follow-on public offer.

ICICI Bank's GBP 350 million international bond offering marked the inaugural deal in the

sterling market from an Indian issuer and also the largest deal in the sterling market from

Asia.

Launched India's first ever jewellery card in association with jewelry major Gitanjali Group.

ICICI Bank became the first bank in India to launch a premium credit card -- The Visa

Signature Credit Card.

Foundation stone laid for a regional hub in Gandhinagar, Gujarat.

Introduced SME Toolkit, an online resource centre, to help small and medium enterprises

start, finance and grow their business.

ICICI Bank signed a multi-tranche dual currency US$ 1.5 billion syndication loan agreement

in Singapore.


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ICICI Bank became the first private bank in India to offer both floating and fixed rate on car

loans, commercial vehicles loans, construction equipment loans and professional equipment

loans.

In a first of its kind, nation wide initiative to attract bright graduate students to pursue a career

in banking, ICICI Bank launched the "Probationary Officer Programme".

Launched Bank@home services for all savings and current a/c customers residing in India

ICICI Bank Eurasia LLC inaugurated its first branch at St Petersburg, Russia.

2008:

ICICI Bank enters US, launches its first branch in New York.

ICICI Bank enters Germany, opens its first branch in Frankfurt.

ICICI Bank launched iMobile, a breakthrough innovation in banking where practically all

internet banking transactions can now be simply done on mobile phones.

ICICI Bank concluded India's largest ever securitisation transaction of a pool of retail loan

assets aggregating to Rs. 48.96 billion (equivalent of USD 1.21 billion) in a multi-tranche

issue backed by four different asset categories. It is also the largest deal in Asia (ex-Japan)


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in 2008 till date and the second largest deal in Asia (ex-Japan & Australia) since the

beginning of 2007.

BANK SEVIES

Personal Banking o Savings & Deposits

o Loans

o Cards

o Wealth management

Global Private Clients

Corporate Banking o Transaction Banking

o Treasury Banking

o Investment Banking

o Capital Markets

o Custodial Services

o Rural & Agri Banking

o Structured Finance

o Technology Finance

Business Banking o Current Account

o Business Loans

o Forex

o Trade


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o Cash Management Services

NRI Banking o Money Transfer

o Bank Accounts

o Investment

o Property Solutions

o Insurance

o Loans

INSURENCE & INVESTMENT

Life Insurance o Life Insurance

o Retirement Solutions

o Health Solutions

o Education Solutions

General Insurance o Health Insurance

o Overseas Travel Insurance

o Student Medical Insurance

o Motor Insurance

o Home Insurance

Securities o Corporate Finance

o Primary Dealership

o Institutional Equities

o Retail Equities

Mutual Fund o Our Funds

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o Performance Analyser

o Systematic Investing

o Compare Schemes

Private Equity Practice

INVESTOR RELATIONS

It is ICICI Group's belief that all stakeholders should have access to complete

information regarding its position to enable them to accurately assess its future

potential. ICICI Group regularly publishes information on its operations and various

initiatives for its investors.

Annual Reports

Investor Presentations

Quarterly Financial Results

Share price and ownership

SEC Filings

Credit Ratings

Investor FAQs


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SWOT ANALYSIS OF SBI

Strength/ Opportunities:

The growth for SBI in the coming years is likely to be fueled by the following factors:

• Continued effort to increase low cost deposit would ensure improvement in NIMs and

hence earnings.

• Growing retail & SMEs thrust would lead to higher business growth.

• Strong economic growth would generate higher demand for funds pursuant to higher

corporate demand for credit on account of capacity expansion.

Weakness/ Threats:

The risks that could ensue to SBI in time to come are as under:

• SBI is currently operating at a lowest CAR. Insufficient capital may restrict the growth

prospects of the bank going forward.

• Stiff competition, especially in the retail segment, could impact retail growth of SBI

and hence slowdown in earnings growth.

• Contribution of retail credit to total bank credit stood at 26%. Significant thrust on

growing retail book poses higher credit risk to the bank.

• Delay in technology upgradation could result in loss of market shares.

• Management indicated a likely pension shortfall on account of AS-15 to be close to

Rs50bn.

• Slow down in domestic economy would pose a concern over credit off-take thereby

impacting earnings growth.

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SWOT ANALYSIS OF ICICI BANK

STRENGHTS:

1) Online Services: ICICI Bank provides online services of all it’s banking

facilities. It also provides D-Mart account facilities on-line, so a person can

access his account from anywhere he is.

[D-Mart is a dematerialized account opened by a salaried person for

purchase & sale of shares of different companies.]

2) Advanced Infrastructure: Branches of ICICI Bank are well equipped with

advanced technology to provide the customers with taster banking services. All

the computerized machines are located in suitable manner & are very useful to

the customers & staff of the bank.

3) Friendly Staff: The staff of ICICI Bank in all branches is very friendly & help

the customers in all cases. They provide faster services along with bonding &

personal relationship with the customers.


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4) 12 hrs. Banking services: Compared to other bank ICICI bank provides long

hrs. of services i.e. 8-8 services to the customers. This service is one of it’s kind

& is very helpful for the customers who are in urgent need of money.

5) Other Facilities to the Customers & Employees: ICICI Bank also provides

other facilities like drinking water facilities, proper sitting arrangements to the

customers. And there are also proper Ventilation & sanitary facilities for the

employees of the bank.

6) Late night ATM services: ICICI bank provides late night ATM services to the

customers. The ATM centers of ICICI bank works even after 11:00pm. at night

in certain branches.

Weakness:

1) High Bank Service Charges: ICICI bank charges highly to customers

for the services provided by them when compared to other bank & that is

why it is only in the reach of higher class of society.


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2) Less Credit Period: ICICI bank provides credit facilities but only upto

limited period. Even when the credit period is not over it sends reminder

letters to the customers which may annoy them.

OPPORTUNITIES:

1) Bank –Insurance services: The bank should also provide insurance services.

That means the bank can have a tie-up with a insurance company. The bank

will advertise & promote the different policies introduced by the insurance

company & convince their customers to buy insurance policies.

2) Increase in percentage of Returns on increase: The bank should provide

higher returns on deposits in comparison of the present situation. This will also

upto large extent help the bank earn profits & popularity.


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3) Recruit professionally guided students: Bank & Insurance is a special non-aid

course where the students specialize in the functioning & services of the bank &

also are knowledge about various tax policies. The bank can recruit these

students through tie-ups with colleges. Such students will surely prove as an

asset to the bank.

4) Associate with social cause: The bank can also associate itself with social

causes like providing relief aid patients, funding towards natural calamities. But

this falls in the 4th quadrant so the bank should neglect it.

THREATS

1) Competition: ICICI Bank is facing tight competition locally as well as

internationally. Bank like CITI Bank, HSBC, ABM, Standered Chartered, HDFC

also provide equivalent facilities like ICICI do and also ICICI do not have

consistency in its international operation.

STATE BANK OF INDIA

STATE BANK OF INDIA

ICICI BANK

ICICI BANK

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2) Net Services: ICICI Bank provides all kind of services on-line. There can be

easy access to the e-mail ids of the customers through wrong people. The

confidential information of the customers can be leaked easily through the e-

mail ids.

3) Decentralized Management: Each branch manager is given the authority of

taking decisions in their respective branches. The decisions made by different

managers are diverse and any one wrong decision can laid to heavy losses to

the bank.

4) No Proper Facilities To Uneducated customers: ICICI Bank provides all

services through electronic computerized machines. This creates problems to

the less educated people. But this threat falls in the 4th quadrant so its

negligible. The company can avoid this threat.


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CORRENT SENERIO

SBI profit rises 46% in Q4 on higher other income

Kolkata, May 9 Riding on higher other income including profits from treasury operations,

State Bank of India posted a 46 per cent rise in net profit at Rs 2,742 crore for the fourth

quarter ended March 31, 2009, up from Rs 1,883 crore during the corresponding quarter of

last year.

The bank made a profit of Rs 1,508 crore on account of sale of investments in the quarter

ended March 31, 2009, according to its Chairman, Mr O.P. Bhatt.

Other income for the quarter under consideration grew by 67 per cent at Rs 4,718 crore (Rs

2,817 crore).

The net profit for the year ended March 31, 2009 increased by 35.5 per cent at Rs 9,121

crore, against Rs 6,729 crore during the corresponding period last year.


35

The board of directors at a meeting here on Saturday recommended a dividend of 290 per

cent or Rs 29 per share (215 per cent) for the year under review.

The bank’s treasury income in 2008-09 increased by 171 per cent to Rs 2,566 crore on

account of profit on sale of investments, Mr Bhatt said.

Pillar of growth

Treasury would continue to be an important pillar of growth for the bank, he maintained.

“Historically, treasury was our residual business but this year treasury has registered

outstanding growth. We are now trying to offer products at par with other multinational banks.

Our fee-based income, which was earlier growing in single digits, also grew by 30 per cent in

2008-09,” Mr Bhatt said explaining the reason for the growth in the bank’s net profit.

Referring to the lower growth in net profit in 2008-09 vis-À-vis 2007-08 when the growth was

48 per cent, he said, “It was due to the rise in overhead costs due to branch expansion,

liquidity overhang and the cost of carrying it and also on account of higher provisioning for

salary revisions and for pensions.”


36

A 30 per cent growth in advances also contributed to the growth of net profit, he said.

“There has been a robust growth in our advances not only in terms of volumes but also in

terms of income,” he pointed out.

Performance

The bank’s core fee-based income for the year ended March 2009 grew by 29 per cent to Rs

7,617 crore contributed by commission, exchange, loan processing fee and account

maintenance charges.

Other income increased by 46 per cent at Rs 12,691 crore (Rs 8,695 crore).

Domestic deposits grew by 33 per cent at Rs 6,96,340 crore (Rs 5,22,589).

Current Account and Savings Bank Account (CASA) deposits increased by 22 per cent to Rs

2,73,396 crore (Rs 2,23,627 crore) and term deposits grew by 41.5 per cent to Rs 4,22,944

crore (Rs 2,98,962 crore). The share of bulk deposits to total deposits declined to 10.81 per

cent (14.13 per cent).

Advances went up 30 per cent at Rs 5,48,540 crore (Rs 4,22,331 crore). The credit-deposit

ratio declined to 66.63 per cent (72.59 per cent).

“There has been an unprecedented flow of deposits since November 2008 to the tune of Rs

1,000 crore a day; on the other hand there has been a decline in credit offtake. This has led

to a decline in CD ratio,” Mr Bhatt observed.


37

The net interest margin (NIM) declined to 2.93 per cent (3.07 per cent). “The huge growth in

deposits, lesser growth and lower yield on advances has put a pressure on our margins,” Mr

Bhatt said.

The bank witnessed a two basis point dip in NIM in April 2009. However, with the cost of

deposits coming down, the bank was hopeful of either maintaining or registering a slight

improvement in its NIM, he said.

NPAs flat

The net non-performing assets remained almost flat at 1.76 per cent (1.78 per cent).

“International NPAs increased by 955 crore as a result of economic slowdown, particularly in

the US and Singapore.

Domestic NPAs increased by Rs 1,774 crore of which Ratnagiri Power alone contributed to Rs

1,651 crore,” Mr Bhatt said and added that the bank would be able to manage NPAs at the current

level.

BANANCE SHEET

Balance Sheet of State Bank of India ------------------- in Rs. Cr. -------------------

Mar '05 Mar '06 Mar '07 Mar '08 Mar '09

12

mths12 mths 12 mths 12 mths 12 mths

Capital and Liabilities:

38

Total Share Capital 526.30 526.30 526.30 631.47 634.88

Equity Share Capital 526.30 526.30 526.30 631.47 634.88

Share Application Money 0.00 0.00 0.00 0.00 0.00

Preference Share Capital 0.00 0.00 0.00 0.00 0.00

Reserves 23,545.84 27,117.79 30,772.26 48,401.19 57,312.82

Revaluation Reserves 0.00 0.00 0.00 0.00 0.00

Net Worth 24,072.14 27,644.09 31,298.56 49,032.66 57,947.70

Deposits367,047.5

3380,046.06 435,521.09 537,403.94 742,073.13

Borrowings 19,184.31 30,641.24 39,703.34 51,727.41 53,713.68

Total Debt386,231.8

4410,687.30 475,224.43 589,131.35 795,786.81

Other Liabilities & Provisions 49,578.89 55,538.17 60,042.26 83,362.30 110,697.57

Total Liabilities459,882.8

7493,869.56 566,565.25 721,526.31 964,432.08


12 mths 12 mths 12 mths 12 mths 12 mths

Assets

Cash & Balances with RBI 16,810.33 21,652.70 29,076.43 51,534.62 55,546.17

Balance with Banks, Money at Call 22,511.77 22,907.30 22,892.27 15,931.72 48,857.63

Advances 202,374.45 261,641.53 337,336.49 416,768.20 542,503.20

Investments 197,097.91 162,534.24 149,148.88 189,501.27 275,953.96

Gross Block 6,691.09 7,424.84 8,061.92 8,988.35 10,403.06

Accumulated Depreciation 4,114.67 4,751.73 5,385.01 5,849.13 6,828.65

39

Net Block 2,576.42 2,673.11 2,676.91 3,139.22 3,574.41

Capital Work In Progress 121.27 79.82 141.95 234.26 263.44

Other Assets 18,390.71 22,380.84 25,292.31 44,417.03 37,733.27

Total Assets 459,882.86 493,869.54 566,565.24 721,526.32 964,432.08

Contingent Liabilities131,325.4

0191,819.34 259,536.57 736,087.59 614,603.47

Bills for collection 44,794.10 57,618.44 70,418.15 93,652.89 152,964.06

Book Value (Rs) 457.39 525.25 594.69 776.48 912.73

PRPFIT & LOSS ACCOUNT

Profit & Loss account of State Bank of India ------------------- in Rs. Cr. -------------------



Income

Interest Earned 32,428.00 35,794.93 39,491.03 48,950.31 63,788.43

Other Income 7,119.90 7,388.69 7,446.76 9,398.43 12,691.35

Total Income 39,547.90 43,183.62 46,937.79 58,348.74 76,479.78

Expenditure

Interest expended 18,483.38 20,159.29 23,436.82 31,929.08 42,915.29

Employee Cost 6,907.35 8,123.04 7,932.58 7,785.87 9,747.31

Selling and Admin Expenses 2,634.64 1,853.32 3,251.14 4,165.94 5,122.06

Depreciation 752.21 729.13 602.39 679.98 763.14

Miscellaneous Expenses 6,465.82 7,912.15 7,173.55 7,058.75 8,810.75

40

Preoperative Exp Capitalised 0.00 0.00 0.00 0.00 0.00

Operating Expenses 11,278.18 11,872.89 13,251.78 14,609.55 18,123.66

Provisions & Contingencies 5,481.84 6,744.75 5,707.88 5,080.99 6,319.60

Total Expenses 35,243.40 38,776.93 42,396.48 51,619.62 67,358.55



Net Profit for the Year 4,304.52 4,406.67 4,541.31 6,729.12 9,121.23

Extraordionary Items 0.00 0.00 0.00 0.00 0.00

Profit brought forward 0.34 0.34 0.34 0.34 0.34

Total 4,304.86 4,407.01 4,541.65 6,729.46 9,121.57

Preference Dividend 0.00 0.00 0.00 0.00 0.00

Equity Dividend 657.87 736.82 736.82 1,357.66 1,841.15

Corporate Dividend Tax 93.75 103.34 125.22 165.87 248.03

Per share data (annualised)

Earning Per Share (Rs) 81.79 83.73 86.29 106.56 143.67

Equity Dividend (%) 125.00 140.00 140.00 215.00 290.00

Book Value (Rs) 457.39 525.25 594.69 776.48 912.73

Appropriations

Transfer to Statutory Reserves 3,552.89 3,566.51 3,682.15 5,205.69 7,032.04

Transfer to Other Reserves 0.01 0.00 -2.88 -0.10 0.01

Proposed Dividend/Transfer to Govt 751.62 840.16 862.04 1,523.53 2,089.18

Balance c/f to Balance Sheet 0.34 0.34 0.34 0.34 0.34

Total 4,304.86 4,407.01 4,541.65 6,729.46 9,121.57

41

All the balance sheet show what is strength of this Bank.

ICICI BANK CURENT

Performance Review – Year ended March 31, 2009

• Dividend of Rs. 11 per share proposed, same as previous year

• Profit before tax of Rs. 5,117 crore for the year ended March 31, 2009 compared to Rs.

5,056 crore for the year ended March 31, 2008

• 12% year-on-year increase in operating profit for the year ended March 31, 2009

• 14% year-on-year reduction in costs due to cost rationalization measures

• Current and savings account (CASA) ratio increased to 28.7% at March 31, 2009 from

26.1% at March 31, 2008

• Increase of Rs. 5,286 crore in CASA deposits in quarter ended March 31, 2009

• Strong capital adequacy ratio of 15.5% and Tier-1 capital adequacy ratio of 11.8% after

proposed dividend; Tier-1 capital adequacy ratio highest among large Indian banks The

Board of Directors of ICICI Bank Limited (NYSE: IBN) at its meeting

held at Mumbai today, approved the audited accounts of the Bank for the

year ended March 31, 2009.

Profit & loss account

• Profit before tax for the year ended March 31, 2009 (FY2009) was Rs.5,117 crore (US$

1,009 million), compared to Rs. 5,056 crore (US$997 million) for the year ended March 31,

2008 (FY2008).


42

• Profit after tax for FY2009 was Rs. 3,758 crore (US$ 741 million) compared to Rs. 4,158

crore (US$ 820 million) for FY2008 due to the higher effective tax rate on account of lower

proportion of income taxable as dividends and capital gains.

• Net interest income increased 15% from Rs. 7,304 crore (US$ 1,440million) for FY2008 to

Rs. 8,367 crore (US$ 1,650 million) for FY2009.

While the advances declined marginally year-on-year, the net interest income increased due

to improvement in net interest margin from 2.2% in FY2008 to 2.4% in FY2009.

Operating expenses (including direct marketing agency expenses) decreased 14% to Rs.

6,835 crore (US$ 1,348 million) in FY2009 from Rs. 7,972 crore (US$ 1,572 million) in

FY2008. The cost/average asset ratio for FY2009 was 1.8% compared to 2.2% for FY2008.

• Profit before tax for the quarter ended March 31, 2009 (Q4-2009) was Rs. 1,071 crore (US$

211 million) compared to Rs. 1,343 crore (US$265 million) for the quarter ended March 31,

2008 (Q4-2008),primarily due to lower level of fee income at Rs. 1,343 crore (US$ 265

million) in Q4-2009 compared to Rs. 1,928 crore (US$ 380million) in Q4-2008, partly offset

by lower operating expenses and higher net interest income. The lower level of fee income

was due to reduced investment and acquisition financing activity in the corporate sector and

lower level of fees from distribution of retail financial products, reflecting the adverse

conditions in global and Indian financial markets.

• Profit after tax for Q4-2009 was Rs. 744 crore (US$ 147 million) compared to Rs. 1,150

crore (US$ 227 million) for Q4-2008.

Balance sheet

STATE BANK OF INDIAICICI BANK

43

During the year, the Bank has pursued a strategy of prioritizing capital conservation, liquidity

management and risk containment given the challenging economic environment. This is

reflected in the Bank’s strong capital adequacy and its focus on reducing its wholesale term

deposit base and increasing its CASA ratio. The Bank is maintaining excess liquidity on an

ongoing basis. The Bank has also placed strong emphasis on efficiency improvement and

cost rationalization. The Bank continues to invest in expansion of its branch network to

enhance its deposit franchise and create an integrated distribution network for both asset

and liability products. In line with the above strategy, the total deposits of the Bank were

Rs.218,348 crore (US$43 billion) at March 31, 2009, compared to Rs.244,431 crore (US$

48.2 billion) at March 31, 2008. The reduction in term deposits by Rs. 24,970 crore (US$ 4.9

billion) was primarily due to the Bank’s conscious strategy of paying off wholesale deposits.

During Q4-2009, total deposits increased by Rs. 9,283 crore (US$ 1.8 billion), of

which Rs. 5,286 crore (US$ 1.0 billion), or about 57%, was in the form of CASA deposits.

The CASA ratio improved to 28.7% of total deposits at March 31, 2009 from 26.1% at March

31, 2008.

The branch network of the Bank has increased from 755 branches at March 31, 2007 to

1,438 branches at April 24, 2009. The Bank is also in the process of opening 580 new

branches which would expand the branch network to about 2,000 branches, giving the Bank

a wide distribution reach in the country.

In line with the strategy of prioritizing capital conservation and risk containment, the loan

book of the Bank decreased marginally to Rs.218,311 crore (US$ 43.0 billion) at March 31,

2009 from Rs. 225,616 crore(US$ 44.5 billion) at March 31, 2008.

Capital adequacy The Bank’s capital adequacy at March 31, 2009 as per Reserve Bank of

India’s revised guidelines on Basel II norms was 15.5% and Tier-1 capital


44

adequacy was 11.8%, well above RBI’s requirement of total capital adequacy of 9.0% and

Tier-1 capital adequacy of 6.0%. The above capital adequacy takes into account the impact

of dividend recommended by the Board.

Asset quality

At March 31, 2009, the Bank’s net non-performing asset ratio was 1.96%.During the year the

Bank restructured loans aggregating to Rs. 1,115crore (US$ 220 million).

Dividend on equity shares The Board has recommended a dividend of Rs. 11 per equity

share(equivalent to US$ 0.43 per ADS) for FY2009. The declaration and

payment of dividend is subject to requisite approvals. The record/book closure dates will be

announced in due course.

Overseas banking subsidiaries

ICICI Bank Canada saw an increase of about CAD 1.75 billion in term deposits during

FY2009 while its customer accounts increased from about 200,000 at March 31, 2008 to

over 280,000 at March 31, 2009. ICICI Bank Canada continued to maintain liquidity of about

CAD 850.0 million. ICICI Bank Canada’s profit after tax for FY2009 was CAD 33.9 million.

ICICI Bank Canada’s capital position continued to be strong with a capital adequacy ratio of

19.9% at March 31, 2009.ICICI Bank UK saw an increase of about USD 1.80 billion in retail

term deposits during FY2009 due to which the proportion of retail term deposits in total

deposits increased from 16% at March 31, 2008 to 58% at March 31, 2009. ICICI Bank UK’s

customer base increased from about 210,000 at March 31, 2008 to over 310,000 customers

at March 31, 2009.ICICI Bank UK continued to maintain liquidity of about USD 1.0 billion.

STATE BANK OF INDIA

45

After accounting for the gains on buyback of bonds and mark-to-market and impairment

provisions on the investment portfolio, ICICI Bank UK’s profit after tax for FY2009 was USD

6.8 million. ICICI Bank UK’s capital position continued to be strong with a capital adequacy

ratio of 18.4% at March 31, 2009.

Insurance subsidiaries

ICICI Prudential Life Insurance Company (ICICI Life) maintained its market leadership in the

private sector with an overall market share of 11.8% based on retail new business weighted

received premium during April 2008-February 2009. ICICI Life’s total premium increased by

13% to Rs.15,356 crore (US$ 3.0 billion) in FY2009. ICICI Life’s renewal premium increased

by 61%, reflecting the long term sustainability of the business.ICICI Life’s unaudited New

Business Profit (NBP) in FY2009 was Rs. 1,004crore (US$ 198 million). Due to the business

set-up and customer acquisition costs, which are not amortised, and reserving for actuarial

liability, ICICI Life’s statutory accounting results reduced the consolidated profit after tax of

ICICI Bank by Rs. 577 crore (US$ 114 million) in FY20091(compared to Rs. 1,032 crore

(US$ 203 million) in FY2008). The expense ratio has decreased from 14.9% in FY2008 to

11.8% in FY2009. Assets held at March 31, 2009 were Rs. 32,788 crore (US$ 6.5 billion)

compared to Rs. 28,578 crore (US$ 5.6 billion) at March 31, 2008.

ICICI Lombard General Insurance Company (ICICI General) maintained its

leadership in the private sector with an overall market share of 11.7% during April 2008-

February 2009. ICICI General’s premiums increased 3% on a year-on-year basis to Rs.

3,457 crore (US$ 682 million) in FY2009.ICICI General’s profit after tax for FY2009 was Rs.

24 crore (US$ 5 million).

STATE BANK OF INDIA

ICICI BANK

46

Consolidated profit after tax of the Bank increased by 18% from Rs. 636 crore (US$ 125

million) in Q4-2008 to Rs. 748 crore (US$ 147 million) in Q4-2009 and by 5% from Rs.

3,398 crore (US$ 670 million) in FY2008 to Rs. 3,577 crore (US$ 705 million) at FY2009.

Summary Profit and Loss Statement (as per unconsolidated Indian GAAP accounts)

Q4-2008 Q4-2009 FY-2008 FY-2009

Net interest income 2,079 2139 7304 8367

Non-interest income 2,362 1,674 8,811 7,604

-Fee income 1,928 1,343 6,627 6,524

-Lease and other income 270 117 1,369 637

-Treasury income 164 443 815 214

Less:-

Operating expense 1,746 1,552 6,429 6,306

Expenses on direct market

agents (DMAs)

358 53 1,543 529

Lease depreciation 46 52 182 210

Operating profit 2,291 2,156 7,961 8,925

Less: Provisions 948 1,085 2,905 3,808

Profit before tax 1,343 1,071 5,056 5,117

Less: Tax 193 327 898 1,359

Profit after tax 1,150 744 4,158 3,758

1. Net of premium amortisation on government securities of Rs. 240 crore in Q4-2008, Rs.

898 crore in FY2008, Rs. 162 crore in Q4-2009 and Rs. 725 crore in FY2009.

ICICI BANK

47

2. Represents commissions paid to direct marketing agents (DMAs) for origination of retail

loans. These commissions are expensed upfront.

3. Prior period figures have been regrouped/re-arranged where necessary.

Summary Balance Sheet Rs. crore

March 31,2008 March 31,2009

Assets

Cash & bank balances 38,041 29,966

Advances 225,616 218,311

Investments 111,454 103,058

Fixed & other assets 24,684 27,966

Total 399,795 379,301

Liabilities

Networth 46,470 49,533

- Equity capital 1,113 1,113

- Reserves 45,357 48,420

48

Preference capital 350 350

Deposits 244,431 218,348

CASA ratio 26.1% 28.7%

Borrowings 86,399 92,805

Other liabilities 22,145 18,265

Total 399,795 379,301

All financial and other information in this press release, other than financial and other

information for specific subsidiaries where specifically mentioned, is on an unconsolidated

basis for ICICI Bank Limited only unless specifically stated to be on a consolidated basis for

ICICI Bank Limited and its subsidiaries. Please also refer to the statement of audited

unconsolidated, consolidated and segmental results required by Indian regulations that has,

along with this release, been filed with the stock exchanges in India where ICICI Bank’s

equity shares are listed and with the New York Stock Exchange and the US Securities

Exchange Commission, and is available on our website www.icicibank.com. Except for the

historical information contained herein, statements in this release which contain words or

phrases such as 'will', ‘expected to’, etc., and similar expressions or variations of such

expressions may constitute 'forward-looking statements'. These forward-looking statements


http://www.icicibank.com/

49

involve a number of risks, uncertainties and other factors that could cause actual results,

opportunities and growth potential to differ materially from those suggested by the forward-

looking statements. These risks and uncertainties include, but are not limited to, the actual

growth in demand for banking and other financial products and services in the countries that

we operate or where a material number of our customers reside, our ability to successfully

implement our strategy, including our use of the Internet and other technology, our rural

expansion, our exploration of merger and acquisition opportunities, our ability to integrate

recent or future mergers or acquisitions into our operations and manage the risks associated

with such acquisitions to achieve our strategic and financial objectives, our ability to manage

the increased complexity of the risks we face following our rapid international growth, future

levels of impaired loans, our growth and expansion in domestic and overseas markets, the

adequacy of our allowance for credit and investment losses, technological changes,

investment income, our ability to market new products, cash flow projections, the outcome of

any legal, tax or regulatory proceedings in India and in other jurisdictions we are or become a

party to, the future impact of new accounting standards, our ability to implement our dividend

policy, the impact of changes in banking regulations and other regulatory changes in India

and other jurisdictions on us, including on the assets and liabilities of ICICI, a former financial

institution not subject to Indian banking regulations, the bond and loan market conditions and

availability of liquidity amongst the investor community in these markets, the nature of credit

spreads, interest spreads from time to time, including the possibility of increasing credit

spreads or interest rates, our ability to roll over our short-term funding sources and our

exposure to credit, market and liquidity risks as well as other risks that are detailed in the

reports filed by us with the United States Securities and Exchange Commission. ICICI Bank


50

undertakes no obligation to update forward-looking statements to reflect events or

circumstances after the date thereof.

ANALYSIS OF THIS PROJECT

I have taken two bank one from Public Sector Second from Privet Sector.

Statement of problem

SBI and ICICI want to know about the customer perception about the investment.


51

➢ To find out what kind of service provide by the competitors in advance product &

investment

policy.

To find out the need of the customer and hence formulate the strategy to level the

economy in the society.

How the products & investments are helping the customer.

To know the utility of the product & investment.

To find out the need of the customer and introduce new product & investment or

facilitate new service in existing product .

Icici bank are facing US recession that’s way his loose profitability.

Due to this bad news icici bank want to mantain customer loyalty.

To find out the need of the customer and introduce new product & investment or

facilitate new service in existing product .

How to change customer perception

Research objectives


52

Summer Internship Project gives a practical exposure and helps in acquiring the on road

skills.

What is difference between SBI AND ICICI.

How to invest money in share and other (MF,ULIP,INSURENCE etc.)

First and foremost objective is to find out the reasons for using of Advance Product

from SBI or ICICI BANK.

To find out the services that other bank given to their customer.

To generate the leads through the survey.

To sort out the prospective leads from the data I have collected through the survey.

To build the relationship with the customers and to follow up them, make sure that

they are satisfied with the products.

To maintain good relationship with the corporate employees.

To get more references from the customers and generate new leads by following a

chain process.

To place SBI Advance Product ahead of the competitors also ICICI.


53

To find out the customer awareness on booming Advance Product market and to find

out the using patterns of the people.

To know where should invest money.

To make the customer aware of the benefits of the product and convince him to go for

SBI & ICICI’s Advance Product & Service.

Significance and scope

The geographical scope of the study is restricted to Delhi & NCR only with sample

size of 2000 people.

All the analysis and suggestions are based on the analysis of the both primary and

secondary data.

There fore the scope of the study revolves around the following aspects:-

· Consumer perception towards Advance Product & Investment

· Consumer awareness about Advance Product scheme & Share and its benefit.

· Aware the Bank about the customer problems, especially in case of Share

Marker.


54

Research methodology

Research methodology is a methodology for collecting all sorts of information & data

pertaining to the subject in question. The objective is to examine all the issues involved &

conduct situational analysis. The methodology includes the overall research design,

sampling procedure & fieldwork done & finally the analysis procedure. The methodology

used in the study consistent of sample survey using both primary & secondary data. The

primary data has been collected with the help of questionnaire as well as personal

observation book, magazine;

journals have been referred for secondary data. The questionnaire has been drafted &

presented by the researcher himself.

Sample Size:

Sample of 2000 people was taken into study, and their data was collected

Sampling Technique:

To study the Project, a Simple Random Sampling technique is used.

Data Collection:


55

Collection of data is done by

Secondary Data & through

Questionnaire

i.e., Primary data was collected through Questionnaire.

Data Analysis:

After data collection, I’m able to analyze customer’s views, ideas and opinions related

to Advance Product & investment and about SBI & ICICI .

Data Interpretation:

Interpretation of data is done by using statistical tools like Pie diagrams,

Bar graphs, and also using quantitative techniques (by using these techniques)

accurate information is obtained.

Classification & tabulation of data:

The data thus collected were classified according to the categories, counting sheets &

the summary tables were prepared. The resultant tables were one dimensional, two

dimensional.

Statistical tools used for analysis:


56

Out of the total respondents, the respondents who responded logically were taken

into account while going into statistical details & analysis of data. The tools that have

been used for analyzing data & inference drawing are mainly statistical tools like

percentage, ranking, averages, etc.

As per questionnaire and market surveys I have find out different responses from different

people. According to their responses I analyze the findings and draw certain remarks.

Analysis of data

GRAPHICAL REPRESENTATION OF DATA

Q1. On which bank you depend for your regular transaction?

( ) No. of People

SBI 60 % (1200)

ICICI 33 % (660)

HDFC 5% (100)

OTHER 2% (40)

TOTAL NO. OF PEOPLE 2000

ICICI BANK

57

It has been observed that approximately 60% correspondents are using the service of SBI for

their daily transaction, around 33% of people are using ICICI Bank for their transaction and

only 5% & 2% of people are using HDFC & other Bank service respectively Delhi & NCR. It

also shows that SBI have the highest market position in Delhi & NCR as per my sample.

Q2. Are you aware of products & services provided by SBI ?

YES 85% (1700)

NO 15% (300)

Total No. of People 2000

From the above data it is clear that most of the customers (around 85%) of Delhi & NCR

have the idea about the product & services of SBI, the rest 15% have the idea about the

product they are using. In this 15% most of the people are from typical rural area (Farmers).

Q3. If yes are you aware of the advance products (Loan segments) of SBI?

YES 95%(1900)

NO 5% (100)


58


It is clear that most of the people have the idea about the advance product of SBI. Almost all

the 95% people who have the idea about the advance product are the user of SBI product &

service.

Q4. Which bank you prefer for INVESTMENT?

SBI 60% (1200)

ICICI 37% (740)

HDFC 2% (40)

OTHER 1% (20)


According to my sample size 60% of people prefer SBI for investment, but some people

prefer ICICI, HDFC or OTHER Bank for investment.


59

Q5. If you have two option ICICI or SBI for INVESTMENT money in equity which bank

you will prefer SBI or ICICI?

Most of the people said that they prefer SBI because of the transparency and customer feel

secured for any kind of investment product. SBI is a largest bank in India.

Q.6 Which investment you have done either SBI or ICICI?

ULIP 47% (846)

LIFE INSURANCE 20% (360)

MF 15% (270)

EQUITY 10% (180)

OTHER 8% (144)


From the sample size 85% of people are using the SBI ULIP product. From the 1800 people

47% of people took life insurance from SBI. 20% of people took MF , 15% of people took


60

from SBI. Some of the customer took 2 type of loan from SBI like both car & educational loan

and home & car loan. 10% of people took personal loan.

Q7. What do you feel about the services providing by SBI and ICICI in advance

product?

SBI ICICI

SATISFACTORY 2% 1%

GOOD 55% 69%

EXCELLENT 43% 30%

From this it is clear that the service provide by SBI in its advance product is good in between

the customer. All of them satisfy with the product provide by SBI. 55% of people said that the

service provide by SBI is good & 43% said it is excellent & just 2% of people said that it is

satisfactory. For ICICI 69% people said good & 30% is excellent & Just 1% said satisfactory.

Q8. Which Bank you would like to choose for investment your money.

SBI 50%(1000)

ICICI 40%(800)

OTHER 10%(200)

TOTAL 2000

According to my sample size 50%of people prefer SBI for INVESTMENT, but some people

prefer ICICI 40% and OTHER Bank 10% for invest money because they think SBI is trustful

bank.


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Q9.Where do you want to invest your money?

REAL STATE 15%(300)

EQUITY 2%(40)

MUTUAL FUND 3%(60)

ULIPs 15%(300)

SEVING 5%(100)

FIXDEPOSIT 30%(600)

INSURENCE 30%(600)

OTHER 1%(20)

TOTAL 2000

Most of People in Delhi & NCR want to invest their money insurence, fixdeposit, ulips

and real state. just 2% people want to invest in SHARE Market .Because lack of

Knowledge about Share Market.

Findings

Suggestion & Recommendation

Conclusion

PROJECT Findings :

From this project it is found that SBI advance product having the 1st place in the

market at Delhi & NCR, there is a great opportunity to compete with ICICI Bank & to


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retain its customer by fulfilling the requirement of customer in SBI and ICICI advance

product.

It has been observed that approximately 85% correspondents are using advance

product of SBI and 15% are not using any type of advance product of SBI in Delhi &

NCR.

All of SBI customers are satisfied with the services provided by the bank.

Most of the customers at Delhi & NCR prefer to take loan from SBI. Approximately

43% of advance product users said that the service of SBI in advance product is

excellent.

A response from customer care is so clear & good.

Many customers have no time to call customer care so that they are not able to know

about the service & features of SBI advance product.

Government employees are more concern than private employees for advance

product.

Biggest problem people don’t invest their money in Share due to lack of

knowledge

People want securities that’s why choose SBI than ICICI bank

REASON S FOR HIGHLY USE OF SBI ADVANCE PRODUCT :

BIGGEST BANK OF INDIA

ATTRACTIVE RATE OF RETORNS

TRANSPARENCY

SIMPLE & FAST PROCESSING

QUICK PROCESSING

REASON S FOR HIGHLY USE OF ICICI ADVANCE PRODUCT & INVESTMENT :


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LESS PAPER WORK

ATTRACTIVE ROI BUT LESS THAN SBI.

TRANSPARENCY

QUICK PROSESSING

Suggestion & Recommendation

Recommendation for both Bamk :

Customer awareness programme is required so that more people should attract

towards advance product.

Both should more concern about physical verification rather than phone verification so

it will avoid fraud or cheating.

Advance product selling agents must not give any type of wrong information

regarding advance product.

For the better service new offers would be require.

SBI customer care should more concern about the fastest settlement of customer

problems. ICICI bank is already doing.

Before deducting or charging any monetary charge SBI & ICICI must consult with

customer.

Agents should be trained, well educated & proper trained to convince the people

about different advance product.

It is the duty of the bank to disclose all the material facts regarding advance product,

like ROI, repayment period and any types of charges, etc.


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Special scheme should be implemented to encourage both customer and agents.

SBI and ICICI should more focus on Retaining existing customers.

Both bank must focus on Segmentation based on customer knowledge Product

offering based on customer demand.

SBI and ICICI must take feedbacks of customers regarding features & services.

Suggestions given by the consumers at the time of survey:

There is more time period for repayment of education loan.

( Namrata Das )

Education loan should be providing to private college also which is not under AICTE

or any kind of University.

( Pinaki Bal )

SBI should take steps to solve customer problems immediately.

( Gopinath Mahapatra )

Agents should be trained, well educated & proper trained to convince the people

about different advance product.

(P.Anish Nath)

Loan sanction date should be according to customer convenient.

(Joytirmaya Behera)

A customer awareness programme should be taking place in rural area.

Guarantee should give in investment money in share market

(Ritu singh)


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Conclusion

From the analysis part it can be conclude that customers have a good respond towards SBI

advance products in Delhi & NCR . SBI is in 1st position having large number of customers &

providing good services to them. The bank has a wide customer base, so the bank should

concentrate on this to retain these customers.

In present scenario SBI is the largest advance product issuer in India. Within a very short

period of time the achievement made by SBI is excellent, what a normal bank cannot expect,

but it is being done by SBI. It happens due to employee dedication towards the organization,

fastest growing Indian economy, & brand image.

To be the largest advance product issuer, SBI should focus on-

· Launch Innovative product

· Customized advance products

· Better customer services

· Fastest customers problem solving techniques

· Customer retention

Apart from all the above, SBI believe in providing good customer services to their customers

which is a key factor for success in future.


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Questionnaire

Name - _____________________________________

Occupation-__________________________________

Contact Detail -_______________________________

Q. On which bank you depend for your regular transaction?

a) SBI

b) ICICI Bank

c) HDFC Bank

d) Other Bank, Specify (_____________)

Q. Are you aware of products & services provided by SBI and ICICI?

a) YES

b) NO


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Q. If yes are you aware of the advance products (INVESTMENT) of

SBI and ICICI?

a) YES

b) NO

Q. Which bank you prefer for invest money?

a) SBI

b) ICICI Bank

c) HDFC Bank

d) Other Bank, Specify (_____________)

Q. If you prefer SBI or ICICI for INVESTMENT than what will you concern before

investment ?

__________________________________________________________________________

______

__________________________________________________________________________

______


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__________________________________________________________________________

______

_____________________________________________________.

Q. Which product of SBI or ICICI you have used?

a) Fixdiposit

b) Insurance

c) Mutual Fund

d) Equity

e) Other , Specify ( ______________ )

Q. What do you feel about the services providing by SBI or ICICI in advance product?

a) Both Bad

b) SBI good and ICICI NOT

c) ICICI Good or SBI NOT

d)Both good

Q. Which features you like most in investment segments of SBI and ICICI?

a) Various Product


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b) Attractive ROI

c) Transparency

d) Simple & fast processing

e) Strong capital

f) Big bank

h) Any other feature, specify ( _____________ )

Q. Any suggestion you want to give for the betterment of SBI and ICICI advance

product.

__________________________________________________________________________

______

__________________________________________________________________________

______

__________________________________________________________________________

______

___________________________________________________________.


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Bibliography:

Text Books:

Solomon, Michael R. (2002), Consumer Behavior: Buying, Having, Being. 5th Ed.

New Jersey: Prentice Hall

Wilson A. (2003), Marketing Research: An Integrated Approach

Naresh Ku. Malhotra, Marketing Research: An Applied Orientation, Fifth Edition

Internet:

www.google.co.in

www.sbi.com

www.sbi.co.in

www.bnet.com


Summar Internship Report on SBI vs ICICI Bank

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