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Page 1: A Comparative Study of Customer Services Provided by ICICI and SBI Banks in Bangalore

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

A Comparative study of

“Customer services provided by ICICI and SBI

banks

in Bangalore ”

Dissertation Submitted To

BANGALORE UNIVERSITY

In partial fulfillment of the requirements for the award of the Degree of

MASTER OF BUSINESS ADMINISTRATION

Submitted by

RAKESH KUMAR

REG. NO 091GCMA070

UNDER THE GUIDANCE OF

Ms Pavithra.S.T

Faculty,RVIM

RASHTREEYA SIKSHANA SAMITHI TRUST

R V INSTITUTE OF MANAGEMENT

#CA 17,36th Cross, 26th Main, 4th “T” Block, Jayanagar Bangalore-560041

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

DECLARATION

I, hereby declare that this dissertation titled “A Comparative study of

customer services provided by ICICI and SBI banks in Bangalore” is

submitted to Bangalore University in partial fulfillment of the requirement for

the award of the degree of Master of Business Administration is my

original work done under the valuable guidance of Ms. Pavithra S.T., Faculty,

RVIM.

This dissertation has not been submitted earlier to any other University or

Institution for the award of any degree, diploma/certificate or published any

time before.

Date: RAKESH KUMAR

Place: Bangalore Reg No: 091GCMA070

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

COLLEGE CERTIFICATE

This is to certify that Mr. RAKESH KUMAR bearing Registration Number

091GCMA070 is a student of 4th semester MBA programme has undertaken

Dissertation on the topic “A Comparative study of customer services

provided by ICICI and SBI banks in Bangalore” under the guidance of

Ms. Pavithra.S.T., Faculty RVIM.

This dissertation is based on the original work and has not formed the basis

for award of any degree/diploma/associate ship/prize by Bangalore

University or any other University.

Dr. T. V. RAJU

Professor & Director

RVIM

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

GUIDE CERTIFICATE

This is to certify that Mr. RAKESH KUMAR bearing the register number

091GCMA070 is a student of 4th semester MBA programme has undertaken a

Dissertation on the topic “A Comparative study of customer services

provided by ICICI and SBI banks in Bangalore” under my guidance. This

report is being submitted in partial fulfillment of the requirements for the

award of the degree of Master of Business Administration.

This dissertation is a original work and has not formed the basis for award of

any degree/diploma/associate ship/prize by Bangalore University or any

other University.

Place: Ms.Pavithra.S.T

Date: Bangalore Project Guide

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

ACKNOWLEDGEMENTACKNOWLEDGEMENT

The successful completion of the “DISSERTATION REPORT” has been

accomplished with the valuable guidance and support of numerous people. I

owe to their constructive support, which sustained my motivation. I take this

opportunity to express my profound sense of gratitude to all of them.

I express my sincere gratitude to Dr. T.V. Raju, Professor & Director,

R.V Institute of Management for his invaluable support during my MBA

Course.

I express my sincere thanks and heartfelt gratitude to Ms. Pavithra

S.T., Faculty, R V Institute of Management, Bangalore for her excellent and

inspiring guidance and suggestions throughout this project work. Without her

inspiring encouragement, it would have not been possible for me to bring out

this project.

I express my splendid thanks to all my lecturers, librarian for extending

library facilities needed to complete this project.

Last but not least, my sincere thanks to everybody who has helped me

directly or indirectly for making this project report a grand success.

Date: RAKESH KUMAR

Place: Bangalore Reg. No: 091GCMA070

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

EXECUTIVE SUMMARY:

The banking sector in India has made remarkable progress since the economic reforms

in 1991. New private sector banks have brought the necessary competition into the

industry and spearheaded the changes towards higher utilization of technology, improved

customer service and innovative products. Customers are now becoming increasingly

conscious of their rights and are demanding more than ever before. The recent trends

show that most banks are shifting from a “product-centric model” to a “customer-centric

model” as customer satisfaction has become one of the major determinants of business

growth. In this context, prioritization of preferences and close monitoring of customer

satisfaction have become essential for banks. Keeping these in mind, an attempt has been

made in this study to analyze the factors that are essential in influencing the investment

decision of the customers of the public sector banks. For this purpose, Factor Analysis,

which is the most appropriate multivariate technique, has been used to identify the groups

of determinants. Factor analysis identifies common dimensions of factors from the

observed variables that link together the seemingly unrelated variables and provides

insight into the underlying structure of the data. Secondly, this study also suggests some

measures to formulate marketing strategies to lure customers towards banks.

The study basically tries to identify the customers are satisfied with their services among

ICICI bank and SBI bank and know about the Customer preferences among ICICI and

SBI bank.

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

TABLE OF CONTENT

Chapter No. Contents Page No.1 INTRODUCTION

Introduction to Bank & Banking Introduction to Importance of the Bank Introduction to Reason to choose a Bank

10-13

2 RESEARCH DESIGN Statement of the problem Review of the literature Objectives of the study Scope of the study Research Methodology Method of collection of data Plan of analysis Limitation of the study

14-19

3 INDUSTRY PROFILE Overview the Banking industry

20-27

4 PROFILE OF THE SYSTEM/ COMPANY/ORGANIZATION

Company profile of SBI Product & Services of SBI Award & Recognitions of SBI Company Profile of ICICI Product & Services of ICICI Award & Recognitions of ICIC

28-79

5 DATA ANALYSIS AND INTERPRETATION 80-111

6 FINDINGCONCLUSIONRECOMMENDATIONS

112-116

BIBLIOGRAPHY 117-118

ANNEXURE 119-123

LIST OF TABLE

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

TABLE NO. PARTICULARS PAGE NO.

1 Table showing Age group of Respondents of SBI customers. 81

2 Table showing the income level of Respondents. 83

3 Table showing type of account Respondents having. 85

4 Table showing respondents take loan from SBI 87

5 Table showing preference of services by the respondents 89

6 Table showing the services availed by the SBI customers through Internet banking.

91

7 Table showing reason to choose SBI bank services 93

8 Table showing Age group of Respondents of ICICI bank customers

95

9 Table showing the Income level of Respondents of ICICI bank

97

10 Table showing type of account Respondents having 99

11 Table showing Respondents take loan from ICICI bank 101

12 Table showing preference of services by Respondents 103

13 Table showing the services availed by the ICICI customers through Internet banking.

105

14 Table showing reason to choose ICICI bank services. 107

LIST OF GRAPH

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

GRAPH NO. PARTICULARS PAGE NO.

1 Graph showing number of respondents with their age groups 81

2 Graph showing the income level of Respondents 83

3 Graph showing type of account Respondents having 85

4 Graph showing respondents take loan from SBI 87

5 Graph showing preference of services by the respondents 89

6 Graph showing the services availed by the SBI customers through Internet banking.

91

7 Graph showing reason to choose SBI bank services 93

8 Graph showing Age group of Respondents of ICICI bank customers

95

9 Graph showing the Income level of Respondents of ICICI bank

97

10 Graph showing type of account Respondents having 99

11 Graph showing Respondents take loan from ICICI bank 101

12 Graph showing preference of services by Respondents. 103

13 Graph Table showing the services availed by the ICICI customers through Internet Banking.

105

14 Graph showing reason to choose ICICI bank services. 107

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

Chapter 1

INTRODUCTION

INTRODUCTION:

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

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

customers and to borrow and lend money. It is an institution for receiving, keeping, and

lending money.

An organization, usually a corporation, chartered by a state or federal government, which

does most or all of the following: receives demand deposits and time deposits, honors

instruments drawn on them, and pays interest on them; discounts notes, makes loans, and

invests in securities; collects checks, drafts, and notes; certifies depositor's checks; and

issues drafts and cashier's checks.

Banking is business receiving for lending or investment, of deposits of money, from

public repayable on demand or otherwise and which draw able by cheque, draw and

order. In general terms, Banking is the Process of business activity of accepting and

safeguarding money owned by other individuals and entities, and then lending out this

money in order to earn a profit.

Banks play very important role in the economic life of the nation. The health of the

economy is closely related to the soundness of its banking system. Although banks create

no new wealth but their borrowing, lending and related activities facilitate the process of

production, distribution, exchange and consumption of wealth. In this way they become

very effective partners in the process of economic development. Today, modern banks

are very useful for the utilization of the resources of the country. The banks are

mobilizing the savings of the people for the investment purposes. The savings are

encouraged and saving rate increases. If there would be no banks then a

great portion of a capital of the country would remain idle.

A bank as a matter of fact is just like a heart in the economic structure and the Capital

provided by it is like blood in it. As long as blood is in circulation the organs will remain

sound and healthy. If the blood is not supplied to any organ then that part would become

useless. So if the finance is not provided to Agriculture sector or industrial sector, it will

be destroyed. Loan facility provided by banks works as an incentive to the producer to

increase the production.

Bank provides necessary funds for executive program in the process of economic

development. They collect savings of large masses of people scattered throughout the

country, which is the absence of bank world have remained idle and unproductive. These

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

amounts are collected, pooled together and made available to commerce and industry for

meting the requirement. This provides finance for successfully carrying on various stages

of production as well as distribution.

Bank stimulate the habit of savings amount people by the security and interest they offer

with these savings which are deposited by people are in position to utilize the deposited

amount more productively. The bank increased the transaction capacity of the customers

by advancing loans when they require for additional funds to finance their expanded

program of transaction. In short, the economic development of a particular country

depends on the sound banking system.

Banking is also important to business because businesses deposit their extra money here.

This way their money is not only safe but also earns interest for them. On the other hand,

businesses can borrow money from banks when they need to invest in business. Apart

from that Banks also act as guarantee giver in case of creditors and suppliers.

Product and Services offers by Bank:

Deposits: A bank accepts deposits from the public. People can deposit their cash balances

in either of the following accounts to their convenience:-

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

depositor gets receipts for the amount deposited. It is called Fixed Deposit Receipt.

The receipt indicates the name of the depositor, amount of deposit, rate of interest

and the period of deposit. This receipt is not transferable. If the depositor stands in

need of the amount before the expiry of fixed period, he can withdraw the same

after paying the discount to the bank.

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

small savings in a bank and might need to withdraw them occasionally. Banks

provide a certain rate of interest on the minimum balance kept by the depositor

during the month.

Current Account: This type of account is kept by the businessman who are

required to withdraw money every new and then. Banks do not pay any interest

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

on this account. Any sum or any number of withdrawals can be presented by such

an account holder

Loans Facility: Loans are granted by the banks on securities which can be easily disposed

off in the market. When the bank has satisfied itself regarding the soundness of the party,

a loan is advanced.

Credit cards: All banks (except the Swiss bank) provide VISA and MasterCard cards that

enable individuals to make payments over the Internet or in shops.

Mobile Banking: Mobile banking (also known as M-Banking, mbanking, SMS Banking

etc.) is a term used for performing balance checks, account transactions, payments etc.

via a mobile device such as a mobile phone. Mobile banking today (2007) is most often

performed via SMS or the Mobile Internet but can also use special programs called

clients downloaded to the mobile device.

Internet Banking: Online banking (or Internet banking) allows customers to conduct

financial transactions on a secure website operated by their retail or virtual bank, credit

union or building society.

Core Banking System: Core Banking is a general term used to describe the services

provided by a group of networked bank branches. Bank Customers may access their

funds and other simple transactions from any of the member branch offices, etc.

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

Chapter 2

Research Design

2.1 Statement of the problem:-

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

In today’s competition the core objective of all organizations is to satisfy customers. It is

the choice of empowered customer to decide the fate of any product or organization.

Only those organizations that continuously monitor and meet changing customer needs

will win by cutting costs and restructuring for quicker response to the customer’s

demands, all of which will add up to an unmatched competitive edge enabling to conquer

tomorrow’s market place.

The mere objective of the study is to interpret the customer services provided by ICICI

and SBI bank and to compare with each other. It will help in understanding the preferred

customer changing attitude towards the customer services provided to them by ICICI and

SBI bank.

So the study will give idea about how people are aware about customer services

provided by these banks in Bangalore.

2.2 Objectives of the study:-

1. To understand and compare the services provided by ICICI bank.

2. To understand and compare the services provided by SBI bank.

3. To understand about the customers perception towards ICICI bank and SBI

bank.

4. To study customers willingness to take market risk.

5. To know the brand and advertisement influence on customers about ICICI

bank and SBI bank.

2.3 Review of The Literature:-

In May 1991 Stephen F. Borde had studied about the “Is the Savings and Loan” This

article tells about the Saving and loan crisis. Proposed solutions are discussed in the

context of the industry as it currently stands. With a somewhat similar liability structure

to that of banks (mainly short-term deposits), the asset structure of S&Ls is quite

different. Whereas banks assets consist of short-term loans, S&L assets consist largely of

long-term loans, such as home ownership mortgages. Therefore, in the absence of

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

adequate hedging measures, S&Ls are more vulnerable to interest rate risk, which can

lead to lower profits when interest rates rise.

In June 29, 2001 Joshua Rosner had studied about the Housing Loan in the New

Millennium: A Home Without Equity is Just a Rental with Debt. They studied about the

prospects of the U.S. housing/mortgage sector over the next several years. Based on our

analysis, we believe there are elements in place for the housing sector to continue to

experience growth well above GDP. However, we believe there are risks that can

materially distort the growth prospects of the sector. Specifically, it appears that a large

portion of the housing sector's growth in the 1990's came from the easing of the credit

underwriting process. Such easing includes: The drastic reduction of minimum down

payment levels from 20% to 0% A focused effort to target the "low income" borrower.

The reduction in private mortgage insurance requirements on high loan to value

mortgages. The increasing use of software to streamline the origination process and

modify/recast delinquent loans in order to keep them classified as "current". Changes in

the appraisal process which has led to widespread over appraisal/over-valuation problems

If these trends remain in place, it is likely that the home purchase boom of the past

decade will continue unabated. Despite the increasingly more difficult economic

environment, it may be possible for lenders to further ease credit standards and more

fully exploit less penetrated markets. Recently targeted populations that have historically

been denied homeownership opportunities have offered the mortgage industry novel

hurdles to overcome. Industry participants in combination with eased regulatory

standards and the support of the GSEs (Government Sponsored Enterprises) have

overcome many of them. If there is an economic disruption that causes a marked rise in

unemployment, the negative impact on the housing market could be quite large. These

impacts come in several forms. They include a reduction in the demand for

homeownership, a decline in real estate prices and increased foreclosure expenses. These

impacts would be exacerbated by the increasing debt burden of the U.S. consumer and

the reduction of home equity available in the home. Although we have yet to see any

materially negative consequences of the relaxation of credit standards, we believe the risk

of credit relaxation and leverage can't be ignored. Importantly, a relatively new method of

loan forgiveness can temporarily alter the perception of credit health in the housing

sector. In an effort to keep homeowners in the home and reduce foreclosure expenses,

holders of mortgage assets are currently recasting or modifying troubled loans. Such

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

policy initiatives may for a time distort the relevancy of delinquency and foreclosure

statistics. However, a protracted housing slowdown could eventually cause modifications

to become uneconomic and, thus, credit quality 31 statistics would likely become relevant

once again. The virtuous circle of increasing homeownership due to greater leverage has

the potential to become a vicious cycle of lower home prices due to an accelerating rate

of foreclosures.

In December 2002 Melissa B. Jacoby had studied about the investment Risk beyond a

Subprime Crisis: The Role of Delinquency Management. They studied that Public

investment in and promotion of homeownership and the home mortgage market often

relies on three justifications to supplement shelter goals: to build household wealth and

economic self-sufficiency, to generate positive social-psychological states, and to

develop stable neighborhoods and communities. Homeownership and mortgage

obligations do not inherently further these objectives, however, and sometimes

undermine them. The most visible triggers of the recent surge in subprime delinquency

have produced calls for emergency foreclosure avoidance interventions (as well as front-

end regulatory fixes). Whatever their merit, I contend that a system of mortgage

delinquency management should be an enduring component of housing policy.

Furtherance of housing and household policy objectives hinges in part on the conditions

under which homeownership is obtained, maintained, leveraged, and - in some situations

- exited. Given that high leverage or trigger events such as job loss and medical problems

play significant roles in mortgage delinquency independent of loan terms, better

origination practices cannot eliminate the need for delinquency management. One

function of this brief essay is to identify an existing rough framework for managing

delinquency. Legal scholarship should no longer discuss mortgage enforcement primarily

in terms of foreclosure law and instead should include other debtor-creditor laws such as

bankruptcy, industry loss mitigation efforts, and third-party interventions such as

delinquency housing counseling. In terms of analyzing this framework, it is tempting to

focus on its impact on mortgage credit cost and access or on the absolute number of

homes temporarily saved, but my proposed analysis is based on whether the system

honors and furthers the goals of wealth building, positive social psychological states, and

community development. Because those ends are not inexorably linked to ownership

generally or owning a particular home, a system of delinquency management that honors

these objectives should strive to provide fair, transparent, humane, and predictable

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

strategies for home exit as well as for home retention. Although more empirical research

is needed, this essay starts the process of analyzing mortgage delinquency

2.4 Scope of The Study:

The study basically tries to identify the customers are satisfied with their services among

ICICI bank and SBI bank and know about the Customer preferences among ICICI and

SBI bank. The study was done to individual customer restricted to the city of Bangalore.

2.5 Sample size:-

For the purpose of this study, the sample size comprise of 100 respondents.

ICICI bank - 50 respondents

SBI bank - 50 respondents

2.6 Sampling method:-

For the study on customer service provided by public sector banks and private sector

banks with reference to SBI and ICICI bank, random sampling method has been adopted.

2.7 Method of collection of data :-

Primary Data:-Primary data will be collected through questionnaire and personal

interviews.

Secondary Data:-Secondary data will be collected through various sources such as

magazine, Internet and business journals.

2.8 Analysis method:-

Analysis is done on the basis of responses taken from the respondents by making use of

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

tables, charts, diagrams and graphs.

2.9 Limitations of the Study:

The study is limited to a particular branch of SBI and ICICI bank.

Since the time is less the researcher has taken a sample of 100 people and it will

not reveal the whole population of a country.

2.10 Contribution expected from the research:-

The overall effort is to know about the services provided by ICICI and SBI bank and to

know the customer preferences towards private sector and public sector banks.

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

Chapter 3

INDUSTRY

PROFILE

3. OVERVIEW OF THE BANKING INDUSTRY:

Banking in India originated in the last decades of the 18th century. The oldest bank in

existence in India is the State Bank of India, a government-owned bank that traces its

origins back to June 1806 and that is the largest commercial bank in the country. Central

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

banking is the responsibility of the Reserve Bank of India, which in 1935 formally took

over these responsibilities from the then Imperial Bank of India, relegating it to

commercial banking functions. After India's independence in 1947, the Reserve Bank

was nationalized and given broader powers. In 1969 the government nationalized the 14

largest commercial banks; the government nationalized the six next largest in 1980.

Currently, India has 88 scheduled commercial banks 27 public sector banks (that is with

the Government of India holding a stake), 29 private banks (these do not have

government stake they may be publicly listed and traded on stock exchanges) and 31

foreign banks. They have a combined network of over 53,000 branches and 17,000

ATMs. According to a report by ICRA Limited, a rating agency, the public sector banks

hold over 75 percent of total assets of the banking industry, with the private and foreign

banks holding 18.2% and 6.5% respectively.

Early History:

Banking in India originated in the last decades of the 18 th century. The first banks were

The General Bank of India, which started in 1786, and the Bank of Hindustan both of

which are now defunct. The oldest bank in existence in India is the State Bank of India,

which originated in the Bank of Calcutta June 1806, which almost immediately became

the Bank of Bombay and the Bank of Madras, all three of which were established under

charters from the British East India Company. For many years the Presidency banks acted

as quasi-central banks, as did their successors. The three banks merged in 1925 to from

the Imperial Bank of India, which upon India’s independence, became the State Bank Of

India.

Indian merchants in Calcutta established the Union Bank in 1839, but it failed in 1848 as

a consequence of the economic crisis of 1848-49. The Allahabad Bank established in

1865 and still functioning today is the oldest joint Stock bank in India. When the

American civil war stopped the supply of cotton to Lancashire from the Confederate

States, promoters opened banks to finance trading in Indian cotton. With large exposure

to speculative ventures, most of the banks opened in India during that period failed. The

depositors lost money and lost interest in keeping deposits with banks. Subsequently

banking in India remained the exclusive domain of Europeans for next several decades

until the beginning of the 20th century.

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Foreign banks too started to arrive, particularly in Calcutta in the1860s.The Comptoired

Escompte de Paris opened branch in Calcutta in 1860 and another in Bombay in 1862,

branches in Madras and Pondicherry then a French colony followed. Calcutta was the

most active trading port in India mainly due to the trade of the British Empire and so

became a banking center.

Around the turn of the 20th Century, the Indian economy was passing through a relative

period of stability. Around five decades had elapsed since the Indian Mutiny, and the

social industrial and other infrastructure had improved. Indians had established small

banks most of which served particular ethnic and religious communities.

The presidency banks dominated banking in India but there were also some exchange

banks and a number of Indian joint stock banks. All these banks operated in different

segments of the economy. The exchange banks mostly owned by Europeans,concentrated

on financing foreign trade. Indian joint stock banks were generally undercapitalized and

lacked the experience and maturity to compete with the presidency and exchange banks.

This segmentation Lord Curzon to observe, “in respect of banking it seems we are behind

the times. We are like some old fashioned sailing ship, divided by solid wooden

bulkheads into separate and cumbersome compartments.”

By the 1900s, the market expanded with the establishment of banks such as Punjab

National Bank, in 1895 in Lahore and Bank of India, in 1906, in Mumbai - both of which

were founded under private ownership. Punjab National Bank is the first Swadeshi Bank

founded by the leaders like Lala Lajpat Rai, Sardar Dyal Singh Majithia. The Swadeshi

movement in particular inspired local businessmen and political figures to found banks of

and for the Indian community. A number of banks established then have survived to the

present such as Bank of India, Corporation Bank, Indian Bank, Bank of Baroda, Canara

Bank and Central Bank of India. The fervor of Swadeshi movement lead to establishing

of many private banks in Dakshina Kannada and Udupi district which were unified

earlier and known by the name South Canara ( South Kanara ) district. Four nationalized

banks started in this district and also a leading private sector bank. Hence undivided

Dakshina Kannada district is known as "Cradle of Indian Banking".

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

From World War I to Independence:

The period during the First World War (1914-1918) through the end of the Second

World War (1939-1945), and two years thereafter until the independence of India were

challenging for Indian banking. The years of the First World War were turbulent, and it

took its toll with banks simply collapsing despite the Indian economy gaining indirect

boost due to war-related economic activities. At least 94 banks in India failed between

1913 and 1918 as indicated in the following table:

YearsNumber of banks

that failed

Authorized capital

(Rs. Lakhs)

Paid-up Capital

(Rs. Lakhs)

1913 12 274 35

1914 42 710 109

1915 11 56 5

1916 13 231 4

1917 9 76 25

1918 7 209 1

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Post-independence:

The partition of India in 1947 adversely impacted the economies of Punjab and West

Bengal, paralyzing banking activities for months. India's independence marked the end of

a regime of the Laissez-faire for the Indian banking. The Government of India initiated

measures to play an active role in the economic life of the nation, and the Industrial

Policy Resolution adopted by the government in 1948 envisaged a mixed economy. This

resulted into greater involvement of the state in different segments of the economy

including banking and finance. The major steps to regulate banking included:

In 1948, the Reserve Bank of India, India's central banking authority, was

nationalized, and it became an institution owned by the Government of India.

In 1949, the Banking Regulation Act was enacted which empowered the Reserve

Bank of India (RBI) "to regulate, control, and inspect the banks in India."

The Banking Regulation Act also provided that no new bank or branch

of an existing bank could be opened without a license from the RBI:

By the 1960s, the Indian banking industry has become an important tool to facilitate the

development of the Indian economy. At the same time, it has emerged as a large

employer, and a debate has ensued about the possibility to nationalize the banking

industry. Indira Gandhi, the-then Prime Minister of India expressed the intention of the

GOI in the annual conference of the All India Congress Meeting in a paper entitled "Stray

thoughts on Bank Nationalization." The paper was received with positive enthusiasm.

Thereafter, her move was swift and sudden, and the GOI issued an ordinance and

nationalized the 14 largest commercial banks with effect from the midnight of July

19,1969. Jayaprakash Narayan, a national leader of India, described the step as a

"masterstroke of political sagacity." Within two weeks of the issue of the ordinance, the

Parliament passed the Banking Companies (Acquisition and Transfer of Undertaking)

Bill, and it received the presidential approval on 9 August, 1969.

A second dose of nationalization of 6 more commercial banks followed in 1980. The

stated reason for the nationalization was to give the government more control of credit

delivery. With the second dose of nationalization, the GOI controlled around 91% of the

banking business of India. Later on, in the year 1993, the government merged New Bank

of India with Punjab National Bank. It was the only merger between nationalized banks

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and resulted in the reduction of the number of nationalized banks from 20 to 19. After

this, until the 1990s, the nationalized banks grew at a pace of around 4%, closer to the

average growth rate of the Indian economy. The nationalized banks were credited by

some, including Home minister P. Chidambaram, to have helped the Indian economy

withstand the global financial crisis of 2007-2009.

Liberalization:

In the early 1990s, the then Narsimha Rao government embarked on a policy of

liberalization, licensing a small number of private banks. These came to be known as

New Generation tech-savvy banks, and included Global Trust Bank (the first of such new

generation banks to be set up), which later amalgamated with Oriental Bank of

Commerce, UTI Bank(now re-named as Axis Bank), ICICI Bank and HDFC Bank. This

move, along with the rapid growth in the economy of India, revitalized the banking sector

in India, which has seen rapid growth with strong contribution from all the three sectors

of banks, namely, government banks, private banks and foreign banks.

The next stage for the Indian banking has been setup with the proposed relaxation in the

norms for Foreign Direct Investment, where all Foreign Investors in banks may be given

voting rights which could exceed the present cap of 10%,at present it has gone up to 49%

with some restrictions.

The new policy shook the Banking sector in India completely. Bankers, till this time,

were used to the 4-6-4 method (Borrow at 4%;Lend at 6%;Go home at 4%) of

functioning. The new wave ushered in a modern outlook and tech-savvy methods of

working for traditional banks. All this led to the retail boom in India. People not just

demanded more from their banks but also received more.

Currently (2007), banking in India is generally fairly mature in terms of supply, product

range and reach-even though reach in rural India still remains a challenge for the private

sector and foreign banks. In terms of quality of assets and capital adequacy, Indian banks

are considered to have clean, strong and transparent balance sheets relative to other banks

in comparable economies in its region. The Reserve Bank of India is an autonomous

body, with minimal pressure from the government. The stated policy of the Bank on the

Indian Rupee is to manage volatility but without any fixed exchange rate-and this has

mostly been true.

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With the growth in the Indian economy expected to be strong for quite some time-

especially in its services sector-the demand for banking services, especially retail

banking, mortgages and investment services are expected to be strong. One may also

expect M&As, takeovers, and asset sales.

In March 2006, the Reserve Bank of India allowed Warburg Pincus to increase its stake

in Kotak Mahindra Bank (a private sector bank) to 10%. This is the first time an investor

has been allowed to hold more than 5% in a private sector bank since the RBI announced

norms in 2005 that any stake exceeding 5% in the private sector banks would need to be

vetted by them.

In recent years critics have charged that the non-government owned banks are too

aggressive in their loan recovery efforts in connection with housing, vehicle and personal

loans. There are press reports that the banks' loan recovery efforts have driven defaulting

borrowers to suicide. No two banks could have common directors. However, despite

these provisions, control and regulations, banks in India except the State Bank of India,

continued to be owned and operated by private persons. This changed with the

nationalization of major banks in India on 19 July, 1969.

Nationalization:

By the 1960s, the Indian banking industry has become an important tool to facilitate the

development of the Indian economy. At the same time, it has emerged as a large

employer, and a debate has ensued about the possibility to nationalize the banking

industry. Indira Gandhi, the-then Prime Minister of India expressed the intention of the

GOI in the annual conference of the All India Congress Meeting in a paper entitled "Stray

thoughts on Bank Nationalization." The paper was received with positive enthusiasm.

Thereafter, her move was swift and sudden, and the GOI issued an ordinance and

nationalized the 14 largest commercial banks with effect from the midnight of July 19,

1969. Jayaprakash Narayan, a national leader of India, described the step as a

"masterstroke of political sagacity." Within two weeks of the issue of the ordinance, the

Parliament passed the Banking Companies (Acquisition and Transfer of Undertaking)

Bill, and it received the presidential approval on 9 August, 1969.

A second dose of nationalization of 6 more commercial banks followed in 1980. The

stated reason for the nationalization was to give the government more control of credit

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delivery. With the second dose of nationalization, the GOI controlled around 91% of the

banking business of India. Later on, in the year 1993, the government merged New Bank

of India with Punjab National Bank. It was the only merger between nationalized banks

and resulted in the reduction of the number of nationalized banks from 20 to 19. After

this, until the 1990s, the nationalized banks grew at a pace of around 4%, closer to the

average growth rate of the Indian economy.

The nationalized banks were credited by some, including Home minister P.

Chidambaram, to have helped the Indian economy withstand the global financial crisis of

2007-2009.

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Chapter 4

Company

PROFILE

4.1Company Profile of SBI:

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Pure Banking Nothing Else

HISTORY OF SBI:-

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The origins of State Bank of India date back to 1806 when the Bank of Calcutta (later

called the Bank of Bengal) was established. In 1921, the Bank of Bengal and two other

Presidency banks (Bank of Madras and Bank of Bombay) were amalgamated to form the

Imperial Bank of India. In 1955, the controlling interest in the Imperial Bank of India was

acquired by the Reserve Bank of India and the State Bank of India (SBI) came into

existence by an act of Parliament as successor to the Imperial Bank of India.

Today, State Bank of India (SBI) has spread its arms around the world and has a

network of branches spanning all time zones. SBI's International Banking Group delivers

the full range of cross-border finance solutions through its four wings - the Domestic

division, the Foreign Offices division, the Foreign Department and the International

Services division.

State Bank of India (SBI) is the largest bank in India. If one measures by the number of

branch offices and employees, SBI is the largest bank in the world. Established in 1806

as Bank of Calcutta, it is the oldest commercial bank in the Indian subcontinent. SBI

provides various domestic, international and NRI products and services, through its vast

network in India and overseas. With an asset base of $126 billion and its reach, it is a

regional banking behemoth. The government nationalized the bank in 1955, with the

Reserve Bank of India taking a 60% ownership stake. In recent years the bank has

focused on three priorities, 1), reducing its huge staff through Golden handshake schemes

known as the Voluntary Retirement Scheme, which saw many of its best and brightest

defect to the private sector, 2), computerizing its operations and 3), changing the attitude

of its employees (through an ambitious programme aptly named 'Parivartan' which means

change) as a large number of employees are very rude to customers.

Bank of Bengal H.O.

Roots:-

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The State Bank of India traces its roots to the first decade of 19th century, when the

Bank of Calcutta, later renamed the Bank of Bengal, was established on 2 June 1806. The

government amalgamated Bank of Bengal and two other Presidency banks, namely, the

Bank of Bombay (incorporated on 15 April 1840) and the Bank of Madras on 27 January

1921, and named the reorganized banking entity the Imperial Bank of India. All these

Presidency banks had been incorporated as joint stock companies, and were the result of

the royal charters. The Imperial Bank of India continued as a joint stock company. Until

the establishment of a central bank in India the Imperial Bank and its early predecessors

served as India's central bank, at least in terms of issuing the currency. The State Bank of

India Act 1955, enacted by the Parliament of India, authorized the Reserve Bank of India,

which is the central banking organization of India, to acquire a controlling interest in the

Imperial Bank of India, which was renamed the State Bank of India on 30 April 1955.

Bank of Madras

Timeline:

June 2 , 1806: The Bank of Calcutta established.

January 2 , 1809: This became the Bank of Bengal.

April 15 , 1840: Bank of Bombay established.

July 1 , 1843: Bank of Madras established.

1861 : Paper Currency Act passed.

January 27 , 1921: all three banks amalgamated to form Imperial Bank of India.

July 1 , 1955: State Bank of India formed; becomes the first Indian bank to be

nationalized.

1959: State Bank of India (Subsidiary Banks) Act passed, enabling the State Bank

of India to take over eight former State-associated banks as its subsidiaries.

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1980s When Bank of Cochin in Kerala faced a financial crisis, the government

merged it with State Bank of India.

June 29, 2007: The Government of India today acquired the entire Reserve Bank of India

(RBI) shareholding in State Bank of India (SBI), consisting of over 314 million equity

shares at a total amount of over 355 billion rupees.

Bank of Bombay

Associate banks:

There are seven other associate banks that fall under SBI. They all use the "State Bank of

India" name followed by the regional headquarters' name. These were originally banks

belonging to princely states before the government nationalized them in 1959. In tune

with the first Five Year Plan, emphasizing the development of rural India, the

government integrated these banks with the State Bank of India to expand its rural

outreach. The State Bank group refers to the seven associates and the parent bank. All the

banks use the same logo of a blue keyhole. Currently, the group is merging all the

associate banks into SBI, which will create a "mega bank", and one hopes, streamline

operations and unlock value.

1. State Bank of Bikaner & Jaipur

2. State Bank of Hyderabad

3. State Bank of Indore

4. State Bank of Mysore

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5. State Bank of Patiala

6. State Bank of Saurashtra

State Bank of India Mumbai LHO

Foreign Offices:

State Bank of India is present in 32 countries, where it has 131 branches serving the

international needs of the bank's foreign customers, and in some cases conducts retail

operations. The focus of these offices is India-related business.

SBI Office in UK

Growth:

State Bank of India has often acted as guarantor to the Indian Government, most notably

during Chandra Shekhar's tenure as Prime Minister of India. With more than 12240

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branches and a further 8000+ associate bank branches, the SBI has extensive coverage.

Following its arch-rival ICICI Bank, State Bank of India has electronically networked

most of its metropolitan, urban and semi-urban branches under its Core Banking System

(CBS), with over 4500 branches being incorporated so far. The bank has the largest ATM

network in the country having more than 21000 ATMs. The State Bank of India has had

steady growth over its history, though the Harshad Mehta scam in 1992 marred its image.

In recent years, the bank has sought to expand its overseas operations by buying foreign

banks. It is the only Indian bank to feature in the top 100 world banks in the Fortune

Global 500 rating and various other rankings. According to the Forbes 2000 listing it tops

all Indian companies.

Fortune Global 500 Ranking – 2010:

SBI debuted in the Fortune Global 500 at 363 ranks in 2009. In 2010 it moved up to 283.

As per fortune 500-2010 following are the data for SBI in $ million. Revenues 28212.8.

Profits 2473.3,Assets 323043.9.Stockholders' equity 18519.8 and no of employees are

200,299.

Corporate Details:

This site provides comprehensive information on State Bank of India or SBI Bank, the

premier Nationalized Indian Bank. State Bank of India is actively involved since 1973 in

non-profit activity called Community Services Banking.

State Bank of India is India's largest bank amongst all public and private sector banks

operating in India. State Bank of India owns and operates the following subsidiaries and

Joint Ventures -

State Bank Of India Credit Card

State Bank Of India Online

State Bank Of India USA

State Bank Of India Services

State Bank Of India Mutual Funds

State Bank Of India Branch

Banking Subsidiaries:

State Bank of Bikaner and Jaipur (SBBJ)

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State Bank of Hyderabad (SBH)

State Bank of Indore (SBI)

State Bank of Mysore (SBM)

State Bank of Patiala (SBP)

State Bank of Saurashtra (SBS)

State Bank of Travancore (SBT)

Foreign Subsidiaries:

State bank of India International (Mauritius) Ltd.

State Bank of India (California).

State Bank of India (Canada).

INMB Bank Ltd, Lagos.

Non- banking Subsidiaries:

SBI Capital Markets Ltd (SBICAP)

SBI Funds Management Pvt Ltd (SBI FUNDS)

SBI DFHI Ltd (SBI DFHI)

SBI Factors and Commercial Services Pvt Ltd (SBI FACTORS)

SBI Cards & Payments Services Pvt. Ltd. (SBICPSL)

Performance:

During the year, the Company recorded a total turnover of Rs 129.78 billion (US $

2.89billion),export turnover of Rs 11.42 billion (US $ 0.25 billion), import turnover of Rs

0.38 billion (US$ 8.46 million) and domestic turnover of Rs 117.98 billion (US $ 2.63

billion).As at March31, 2010, the Company had advances outstanding of Rs 30,298

million (US $ 674.79 million),of which the export outstanding stood at Rs 1,955 million

(US $ 43.54 million), import outstanding at Rs 99 million (US $ 2.20 million) and

domestic outstanding at Rs 28,244 million (US $ 629.04 million). Gross NPAs stand at

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Rs 6,352 million (US $ 141.47 million) and Net NPAs stand at Rs 5,068 million (US $

112.87 million). The amount to be transferred to Reserve Fund is Rs 13.16 million (US $

0.29 million).

Summary of Financial Results

2009-10

(in Rs. Mn.)

2008-09*

(in Rs. Mn.)

Total Turnover 1,29,781

1,82,825

Domestic Turnover

1,17,977 1,55,562

International

Turnover 11,804 27,263

Advances

Outstanding 30,294 45,139

Total Income

4,931 6,765

Profit Before Tax

108 1,850

Profit After Tax

66 1,219

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* (includes figures of SBI Factors and Commercial Services Private Limited for the Year

2008-09, since merged with the Company)

The company recorded a total income of Rs 4,931 million (US $109.82 million), posted

a profit before tax of Rs 108 million (US $ 2.41 million) during the current year against a

total income of Rs 6,765 million (US $ 133.28 million) and a profit before tax of Rs

1,850 million (US $ 36.47 million) reported in the previous year.

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4.2 State Bank of India offers following product & services to

customers:-

SBI has every product for every need. Listed below are some of its major products and

services.

1. Personal Banking:

Personal banking is similar to retail banking. The essence is that the products and

services of the bank are tailored to meet individual banking and ancillary needs, including

everything from a checking account to investment advice.

A. Deposit schemes

a) Current Account: Minimum Account Opening Balance is Rs 10,000/- Current

Accounts are non interest bearing accounts.

Most Important Terms & Conditions

Overdraft facility available based on credit history

Free ATM / Debit Card in the 1st year; charge from 2nd year onwards.

No restrictions on number of Payments / Withdrawals

No interest paid on Deposits

Transfer of account to any branch possible

Account maintenance charge applicable

No Passbook is issued but Statement of account is issued

Nomination facility available

KYC Norms of RBI to be followed for opening of Account

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b) Saving & Deposit Account:

Savings With Cheque Book

Minimum account opening balance: Rs 5,000/-

Interest payable on the daily closing balance subject to a minimum of Rs 10,000/- and is

credited to the account monthly.

Savings without Cheque Book    

Minimum Account Opening Balance: Rs 1,000 Interest Paybale on the minimum daily

closing balance subject to a minimum of Rs 2,000/- and is credited to the account

monthly.

Most Important Terms & Conditions

Savings remain liquid, safe and earn interest

Interest calculated on daily product basis

Charges applied in case of non-maintenance of Average Quarterly Balance

(AQB)

Nomination facility available

Passbook issued to account holders

Cheque Book / ATM Cards available free of cost in the 1 st year.Charge

from 2nd year onwards.

c) Term Deposits

Minimum Account Opening Balance Rs 50,000/- Interest is payable Quarterly, Yearly or

at Maturity, at the option of the depositor. A fixed deposit can be used as Security for

your loans and Overdraft facilities. Retail Department a) Savings & Current

Administration including Account Opening, Cheque Book Issue, Standing Instruction

Monetary, Interbank Transfer, Cheque Clearing etc. b) Term Deposits section including

account opening and interest payment etc.

2. Personal finance

a) Housing Loan

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A home loan is a secured loan that borrowers obtain in order to purchase a home.

Because a home is the largest purchase many individuals will ever make, most borrowers

utilize home loans to assist with their home purchase.

SBI Home Loans come to you on the solid foundation of trust and transparency built in

the tradition of State Bank of India.

SBI Offers three types of Home Loan for its customers

SBI Easy Home Loan

Loan amount upto 30 lacs

Interest rate : Present effective rate being 9.75% p.a.

SBI Advantage Home Loan

Loan amount above 30 lacs and upto 75 lacs

Interest rate : Present effective rate being 10% p.a.

SBI Premium Home Loan

Loan amount above 75 lacs and upto 5 crore

Interest rate : Present effective rate being 10% p.a.

b) Car Loan

A Loan which is sanctioned for the purchase of an automobile is known as car loan.

SBI Offers two types of car Loan for its customers:

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SBI Easy Car Loan

Loan amount : Maximum Loan amount will be 2.5 times of net annual income.

Spouse’s income could also be considered provided the spouse becomes a co-borrower

in the loan. Loan amount below Rs. 5 lacs will cover under the scheme.

Interest rate : Present effective rate being 9.25% p.a

SBI Advantage Car Loan

Loan amount : There is no upper limit for the amount of a car loan. A maximum loan

amount of 4 times the net annual income can be sanctioned. Spouse’s income could also

be considered provided the spouse becomes a co-borrower in the loan.

Interest rate : Present effective rate being 11% p.a

c) Education Loan

A term loan granted to Indian Nationals for pursuing higher education in India or abroad

where admission has been secured.

Loan Amount : For studies in India, maximum Rs. 10 lacs

Studies abroad, maximum Rs. 20 lacs

Interest Rate : Upto 4 lacs 12%

Above 4 lacs and upto 7.5 lacs 13.50%

Above 7.5 lacs 12.50%

3. Services:

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State Bank of India offers a wide range of services in the Personal Banking Segment

which are indexed here.

a) ATM Services

State Bank offers you the convenience of over 21,000 ATMs in India, the largest

network in the country and continuing to expand fast! This means that you can transact

free of cost at the ATMs of State Bank Group and wholly owned subsidiary viz. SBI

Commercial and International Bank Ltd., using the State Bank ATM-cum-Debit (Cash

Plus) card.

KINDS OF CARDS ACCEPTED AT STATE BANK ATMs :

Besides State Bank ATM-Cum-Debit Card and State Bank International ATM-Cum-

Debit Cards following cards are also accepted at State Bank ATMs: -

1) State Bank Credit Card.

2) Cards issued by other banks  displaying Maestro, Master Card, Cirrus, VISA and

VISA Electron logos.

3) All Debit/ Credit Cards issued by any bank outside India displaying Maestro, Master

Card, Cirrus, VISA and VISA Electron logos.

State Bank ATM-cum-Debit (State Bank Cash plus) Card:

India's largest bank is proud to offer you unparalleled convenience viz. State Bank

ATM-cum-Debit (Cash Plus) card. With this card, there is no need to carry cash in your

wallet. You can now withdraw cash and make purchases anytime you wish to with your

ATM-cum-Debit Card.

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Get an ATM-cum-Debit card with which you can transact for FREE at any of

over 21,000 ATMs of State Bank Group within our country.

Transaction Limits:  Daily limit of Rs 40,000/- at the ATM

Daily limit of Rs 50,000/- at Point of Sale (POS) terminal for debit transactions 

Combined daily limit of Rs 90,000/-

b) INTERNET BANKING

www.sbionline.com, the Internet banking portal of our bank, enables its retail banking

customers to operate their accounts from anywhere anytime, removing the restrictions imposed

by geography and time. It's a platform that enables the customers to carry out their banking

activities from their desktop, aided by the power and convenience of the Internet. Using Internet

banking services, you can do the following normal banking transactions online:

· Funds transfer between own accounts.

· Third party transfers to accounts maintained at any branch of SBI

· Group Transfers to accounts in State Bank Group

· Inter Bank Transfers to accounts with other Banks

· Online standing instructions for periodical transfer for the above

· Credit PPF accounts across branches

· Request for Issue of Demand Draft

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· Request for opening of new accounts

·Request for closure of Loan Accounts

c) E-RAIL

Book your Railways Ticket Online

The facility has been launched wef Ist September 2003 in association with IRCTC. The

scheme facilitates Booking of Railways Ticket Online.

d) Mobile Banking

State Bank Freedom – Your Mobile Your Bank

Away from home, balance enquiries can be made and/or money sent to the loved ones or

bills can be paid anytime 24x7!!! That is what State Bank Freedom offers -convenient,

simple, secure, anytime and anywhere banking.

The following functionalities are available:

Funds transfer (within and outside the bank)

Interbank Mobile Payment Services (IMPS)

Enquiry services (Balance enquiry/ Mini statement)

Cheque book request

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Demat Enquiry Service

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

Subscriptions

Mobile Top up

M Commerce (Top up of Tatasky, BigTV, SunDirect, DishTV connections and

receive recharge pins for DigitalTV/Videocon d2h, SBI life insurance premium).

e) Safe Deposit Locker

For the safety of your valuables, we offer safe deposit locker facility at a large number of

our branches. There is a nominal annual rent, which depends on the size of the locker and

the centre at which the branch is located. The rent is payable in advance for the Financial

Year. A copy of the locker agreement regarding operation of the locker can be provided

to the locker hirer at the time of allotment of the locker.

Most Important Terms & Conditions

1. Annual rental is payable in advance.

2. Rental depends on the size of the lockers and location of the branch via metro/urban or

semi-urban/rural

3. One time registration charges for all center is also levied.

4. KYC norms are applicable for locker hirers.

5. Lockers cannot be allotted to minors either singly or jointly with others.

4. INSURANCE:

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SBI Life offers a wide range of services to you where not only you can track your

account, generate premium online. Also you can now pay your premium online with our

Electronic Clearing Service which is convenient and minimizes time & effort.

The various Insurance plans offered by SBI in Insurance sector are:

Protection Plan

Saving Plan

Unit Linked Plan

Child Plan

Pension Plan

Health Plan

A) Protection Plan:

Protection Plans are low cost insurance plans which are specially designed to provide

full protection & financial stability to your family in case of any unforeseen events.

SBI Life presents range of attractive protection plans so that you can continue to

celebrate life without worrying about the uncertainties of life.

a) SBI Life - Smart shield:

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SBI Life Insurance is a joint venture between State Bank of India and BNP Paribas

Assurance. SBI owns 74% of the total capital and BNP Paribas Assurance the remaining

26%. SBI Life Insurance has an authorized capital of Rs. 2,000 cores and a paid up

capital of Rs 1,000 cores.

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SBI Life - Smart Shield is a traditional non-participating pure term plan, which is a one

stop solution that meets all your insurance needs. With Options and benefits specially

tailored for those who want best financial protection at an affordable cost, this is the

perfect plan from your preferred insurance provider. Now your family stays protected,

even when you are not around.

 Key Features:

 

Establishes a solid foundation for a lifetime of financial security for your

family at a significantly low cost.

Rewards you for maintaining a healthy lifestyle.

Wide variety of plan options to give you completes freedom from your

liabilities.

Benefits:

Death Benefit: Depending on the plan option chosen, the nominee will

receive the effective Sum Assured under this policy.

Maturity Benefit: No survival benefit available at the end of the term.

b) SBI life – Saral Shield:

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SBI Life Saral Shield is a traditional non-participating pure term plan, At a

nominal cost; Saral Shield provides cover for your family and ensures that a proper

safety net is created. Thus, it guarantees that there will be absolutely no

compromise on your dreams and ambitions for your loved ones, at all times.

Key Features:

Hassle-free, convenient and easy issuance.

Complete Financial Security at truly lower costs.

Wide varieties of plan options to give you complete freedom from your

liabilities.

Attractive large sum assured rebates.

c) SBI Life – Swadhan:

 

SBI Life - Swadhan is an affordable traditional term Insurance policy with refund of part / Total

basic premium paid at the end of the term to the policyholder.

As a Maturity benefit, you receive a repayment of your premium contribution towards the policy.

Available at a low premium, it can provide security to your loved ones.

 Key Features:

Protection at affordable premium

Guaranteed refund of basic premium paid on Survival at the end of the term,

depending upon the term of the policy.

Life cover comes to you at no cost

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B) Unit Linked Plan:

Unit Linked Insurance Plans are long term investment cum protection plans that offer

you an opportunity of availing market linked returns while providing life insurance

protection. Depending on your risk appetite, you have the option of choosing from host of

funds having varied degree of risk exposure. Flexibility and transparency are some of the

other attractive features that make ULIPs an attractive long term investment option.

 To help you fulfill your long term dreams, SBI Life presents you a wide range of ULIPs

so that you continue to Celebrate Life!

a) SBI Life – Smart Performer:

The equity market may have its ups and downs, but you now have a protective shield

that will safeguard your investments, while providing upside potential. SBI Life brings

you ’Smart Performer’, a unique Unit Linked, Non Participating insurance product that

offers you the twin benefits of ’Higher than the Highest’ of the daily NAV Guarantee and

the prospect of market upside. It also allows you to protect your gains through Automatic

Rebalancing facility and offers you a choice of Single and Limited Premium Payment

options.

Key Features:

 Guarantee at maturity based on ‘5% Higher than Highest Guaranteed NAV’

during the first seven years or prevailing NAV at Maturity, whichever is higher,

subject to conditions.

Enjoy the best of both worlds - Guarantee only or Guarantee and Market Upside

through our unique Plan offerings - ‘Secure Plan’ and ‘Secure N Grow Plan’

respectively.

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Life Insurance coverage with minimum Sum Assured of 10 times or 7 times of

your Annualized Premium (AP), based on your age.

b) SBI Life - Saral Maha Anand:

SBI Life - Saral Maha Anand, a unit linked insurance cum savings plan.

Getting a Life Insurance policy was never so easy.No medical examination, which means

hassle-free coverage. Enjoy the power of liquidity through partial withdrawals. All these

benefits at affordable costs, only for you.

Key Benefits:

No medical examination, Simple joining process

Guaranteed Additions of up to 30% of one annual premium, for a 20 year policy

term, subject to the Policy being in force till the maturity date.

Option to avail additional rider benefit under SBI Life - Accidental Death Benefit

Linked Rider.

c) SBI Life – Smart Wealth Assure:

Equity Market Performance is affected by many variables like Economic condition,

Liquidity, Corporate Performance, Global Markets etc. Thus you are not sure what

returns you will get on your hard earned money.

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SBI Life realises the same and brings to you ‘Smart Wealth Assure’ which takes care of

all these variables and gives you ‘Peace of Mind’ by providing a Minimum NAV

Guarantee Plus Upside, if any. SBI Life - Smart Wealth Assure is a unit Linked non

participating Life Insurance Plan. The Plan is further fortified with many power packed

features which takes care of your financial needs.

Key Features:

Option to choose a mix of funds providing Guaranteed Return and Market Linked

Returns.

Guaranteed Return provided through Return Guarantee Fund (RGF) which

guarantees a Minimum Pre-specified NAV, subject to conditions.

Pay only once and get the benefits throughout the Policy Term.

d) SBI Life – Smart Elite:

SBI Life - Smart Elite is a Unit Linked Insurance plan - an exquisitely crafted product,

exclusively for special customers like you. It gives you flexibility to pay premium for

limited term or single premium, with the freedom to stay invested and protected for long

term. What’s more, you have the power of choosing the option best suited to your needs,

at a very competitive rate. All this and more, coming from SBI Life – your preferred

insurer, adds enormous value to your investments.

Key Features:

Maximum value addition through excellent allocation rates.

Pay premiums only for a limited term of 5, 8 or 10 years or a Single Payment, as

per your convenience and enjoy benefits throughout the chosen policy term.

Accidental Death and Accidental Total and Permanent Disability benefit

automatically comes to you as an integral part of the plan.

e) SBI Uint Plus Super:

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SBI Life – Unit Plus Super is a flexible non participating Unit linked insurance Plan,

specially designed to meet your changing requirements at various stages of life. With a

wide array of funds, riders and other options, this product gives you the complete

freedom to fulfill all your investment and insurance needs. And that’s not all; we now

also offer you guaranteed additions and choice of payment options, giving you far

superior value.

Key Features:

Guaranteed Additions of up to 75% of one annual regular premium on a regular

premium policy, for a 30 year policy term, subject to the Policy being in force till

the maturity date.

No Policy Administration fee for first 5 years for Regular and Limited Premium

Paying Term plans, thereby boosting your fund value.

Option to pay Regular/Limited/ Single Premium; Switch or Redirect your

premiums.

C) Saving Plan:

You may have plans for your loved ones or for yourself. It makes perfect sense to

prepare well in advance with saving plan combined with life insurance cover. SBI Life’s

plans will help you plan for your savings, be it your child’s wedding or education, buying

a house or that dream vacation. So that you can Celebrate Life.

a) SBI Life – Money Back:

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SBI Life – Money Back is a traditional participating savings plan with added advantage

of life cover and cash inflow at regular intervals. In order to meet your various financial

obligations at crucial junctures, it offers a wide range of terms options with regular

payments of Guaranteed Survival benefits made at different durations during the policy

term.

Key Features:

The plan has a number of money back options specially suited to your needs.

It has guaranteed cash inflows which can meet your various financial obligations.

Benefits:

DeathBenefit:

In the unfortunate event of death during the term of the plan, the nominee will

receive sum assured plus vested bonuses, (accrued till the date of death),

No deductions are made from the claim amount for the survival benefits already

paid. Exclusions applicable to the basic cover suicide within the first year.

Tax Benefit

SBI Life Money Back Plan enjoys Tax benefit u/s 80C and 10(10D) of IT Act*

Premiums paid for Critical Illness Benefit qualify for tax exemption under Sec

80D*

b) SBI Life – Saral Life:

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SBI Life - Saral Life, a traditional, participating endowment plan which helps you to

meet any requirement in life and is designed with a difference…a take away insurance

especially weaved for you with the threads of Simplicity, Availability & value for your

money.

Key Features:

An unique savings cum insurance cover with easy acceptance.

Flexibility in Coverage - Sum Assured in options of Rs.1 lakh / Rs.2 lakhs / Rs.3

lakhs.

Benefits:

Maturity Benefit:- On survival of the life assured, till the policy term, the Sum

Assured along with the accrued regular bonus and terminal bonus (if any) is

payable.

Death Benefit:- In case of unfortunate demise of the life assured within the policy

term, the Sum Assured along with the accrued regular bonus and terminal bonus

(if any) is payable to the nominee.

c) SBI Life – Shubh Nivesh:

SBI Life - Shubh Nivesh is an Endowment product with an option of Whole Life

coverage.  The basic purpose is to provide Savings, Income and Protection to you and

your family. Not only you can save regularly for your future but you also have the

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flexibility to receive the maturity amount as a lump sum or as a regular income for a

chosen period, depending upon your needs.

Key Features:

A unique Savings cum Protection Plan with the flexibility of Whole Life option as

an add-on.

Triple benefits of Wealth Creation, Regular Income and Protection under a single

plan.

Convenience of premium payment options - Single Premium and Regular

Premium.

D) Child Plan:

As a caring parent you would always want your child to get the very best. To ensure that

you fulfill dreams that you may have for your loved ones, financial planning for their

secured future is very important.

At SBI Life, we understand that. That’s why we present you host of child plans so that

you can choose the one that suits your and your child’s needs best. Our plans are as

accommodating as you are for your child.

a) SBI Life – Smart Scholar:

Life begins afresh when you become a parent. It’s a joy you never felt and a feeling you

never experienced. When your child takes baby steps towards you, you wonder what else

bliss could be?

Amidst all this divine happiness, there’s a new sense of responsibility that fills your

heart. Like you may not really believe that life’s a rose bed or a tender cushion, but you

certainly want it to be for your lovely children. At SBI Life, we understand and we

provide you with a unique, flexible and all-encompassing solution through our SBI Life -

Smart Scholar Plan.

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Key Benefits:

Secure your child’s future by gaining from the financial markets and much more.

Dual protection for your family, in case you are not around –

Payment of base Sum Assured

Inbuilt Premium Payor Waiver benefit to ensure continuance of your benefits.

Accident Benefit which includes Accidental Death benefit and Accidental Total

and Permanent Disability benefit, is an integral part of the plan.

E) Pension Plan:

Increasing life expectancy rate, rising health care costs, absence of social security system

in India and disintegration of joint family system are some of the key reasons that makes

retirement planning very critical.

To help you continue celebrating your life post-retirement to the fullest, SBI Life presents

you an array of pension plans which are simple and innovative.

a) SBI Life – Life Long Pension Plus:

SBI Life - Lifelong Pension Plus is a unique individual non participating traditional

pension plan, which gives you total safety and security while offering you complete

transparency and flexibility. This Plan is a perfect way for you to accumulate your

savings and purchase an annuity with it, a time of your choice, to give you regular

income. You would agree that all this will surely give you a secure future, and a joyous

retirement.

Key Features:

You have complete freedom to avail of a Pure Pension option or get the added

advantage of insurance protection.

Complete Transparency: You will know how your premiums are growing each

step of the way. At the end of each financial year, the fund will be credited with

investment income based on the investment return earned.

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Guaranteed Additions of 10% of Annual Premium on 15th policy anniversary &

10% of Annual Premium on every 5th policy anniversary thereafter in case of

Regular Premium policy whereas for Single Premium policy, 1% of Single

Premium on 15th policy anniversary & 1% of Single Premium on every 5th

policy anniversary thereafter.

b) SBI Life – Smart Pension:

SBI Life -Smart Pension, a unit linked deferred pension plan.With the changing social

and economic environment, shifting individual and family needs, it is advisable to follow

a dynamic retirement planning process to improve the probability of success of your

retirement plan.

A unit linked deferred pension plan, which offers you the flexibility to provide for all

your retirement goals at one go or as per your convenience, spread over a period of time.

What’s more, it provides you a minimum guaranteed return on the gross premiums paid.

Key Features:

Enjoy the benefit of guaranteed amount at maturity.

Option to avail pension by paying only one single premium.

Phase your retirement income - You have an option to take multiple single

premium Policies, at lower costs.

F) Health Plan:

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Financial planning is incomplete without planning health insurance. Due to today’s

hectic lifestyle, improper diet, lack of exercise we are at higher risk of contingencies of

untimely serious illnesses. Sudden health problems could have deep hole in your pockets.

Medical science has advanced by leaps and bounds in the last few decades. There’s a

definite need to cover for health insurance to reduce the financial burden.

a) SBI Life – Hospital Cash:

Good health is the most valuable asset that we have, but nowadays with increasing levels

of stress, negligible physical activity and changing lifestyle our vulnerability to diseases

is increasing at an alarming pace.

The cost of healthcare is rising everyday and more than the cost of your treatment,

indirect costs like - hospital room rent, nursing expenses, post discharge expenses,

recuperating expenses, ambulatory charges etc account for a major part of the overall cost

incurred. Lack of sufficient savings or a suitable health policy may force you to

compromise on the quality of medical treatment. We feel you certainly deserve better.

SBI Life - Hospital Cash is a comprehensive plan that covers not only hospitalization

expenses but also other incidental costs. This plan offers you complete freedom from

worries.

Key Features:

100% payout from day one of hospitalization without any deductible.

Guaranteed coverage up to 75 years.

Coverage of Pre-existing diseases after 2 years.

Enhanced sum assured and increased payouts on each policy anniversary in case

of No claim.

5. DEMAT SERVICES:

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State Bank of India, which is country’s largest public sector bank, is certainly the most

preferred choice of crores of Indians. It provides the facility where you can trade online

through demit accounts since this account is one of the prerequisites to start with any

kind of trading.

SBI Demat account brokerage charge:

SBI Demat account brokerage charges vary depending on the amount which one puts in.

There are various types of brokerages as well.

SBI Demat account turnover per month versus brokerage rates are-

Turnover Brokerage

0 – 5 lakh 0.50%

5 – 10 lakh 0.45%

10 – 25 lakh 0.40%

25 – 50 lakh 0.35%

50 – 75 lakh 0.30%

75 lakh – 2 Crore 0.25%

2 Crore and above 0.15%

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

Turnover Brokerage

< 25 lakh 0.15%

25 – 50 lakh 0.12%

50 lakh – 1.5 Crore 0.10%

1.5 – 3 Crore 0.08%

3 – 6 Crore 0.07%

6 – 10 Crore 0.06%

Above 10 Crore 0.05%

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6. CUSTOMER RELATATION SERVICES:

The SBI customer care service is probably the best customer service offered by various

banks in India and across the world. The SBI customer care service is presumably the

most excellent in comparison to other banks. The bank through its customer service deals

with all kinds of difficulties faced by the clients in relation to the banking services

offered by SBI. The customer care executive pay attention to the problems put out by the

bank customers and provides them with an applicable and relevant solution to their

doubts concerning the bank products and services. The SBI always aims for providing

necessary assistance and information to its clients and attempts to cater to all the banking

needs regarding the highest quality of its services.

SBI has a 24 hour customer care helpline specially devoted to entertain all the queries,

suggestion and problems etc. put up by the bank’s customers. One can dial up the

customer care helpline and esquire about any of the product and services including that

on the home loan and other offered by the bank. One can also get information about the

terms and conditions laid down by the bank about the various services and products

offered by the bank.

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4.3 Awards & Recognitions

Adjudged, Bank of The Year 2009, India by The Banker b Magazine for the

second year in succession.

Awarded “Best Bank - Large”, and “Most Socially Responsible Bank” from

Business World Best Bank Awards 2009.

The Bank bagged the BEST BANK 2009 Award by Business India.

Adjudged the Most Trusted Brand 2009 - Economic Times, Brand Equity.

Bagged the awards for “Most Preferred Bank”, “Most Preferred Credit Card’ and

“Most Preferred Home Loan Brand” from CNBC AWAAZ Consumer Awards,

Sept ’09.

Awarded Visionaries of Financial Inclusion – Year 2009 by Financial Information

Network & Operations Ltd.

Awarded Technology Bank of the Year in recognition of outstanding

achievements in banking technology – IBA Banking Technology Awards 2009.

Selected as the winner of Golden Peacock National Training Award for the year

2009 by the Golden Peacock Awards Jury.

Awarded the Strongest Banks in Asia Award 2010 for the Asia- Pacific region

under The Asian Banker Excellence in Retail Financial Services Awards 2010.

Awarded the Best Microfinance Award for 2009 under The Asian Banker

Excellence in Retail Financial Services Awards 2010.

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4.4 Company Profile of ICICI:

ICICI BANK | khayaal aapka

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Khayaal Aapka:

Over the past decade ICICI Bank has redefined the banking landscape. Through a deep

understanding of customer needs, it has leveraged technology to introduce several

innovations to make banking simple and convenient for the consumer. Continuing with

our commitment towards deepening our relationship with our customers, we have

undertaken many initiatives to strengthen the customer experience through multiple touch

points such as bank branches, internet banking, mobile banking and phone banking. In

addition we have continued to offer products and services that have been thoughtfully

designed, keeping the consumer in mind.

Khayaal aapka is a reflection of this commitment that we have towards our customers.

Khayaal aapka embodies our relationships with customers that go beyond transactions it

is our commitment to treat our customers fairly, show empathy towards customer needs

and create and deliver products and services that make a difference to our customers'

lives.

ICICI Bank is India's second-largest bank with total assets of Rs. 3,849.70 billion

(US$ 82 billion) at March 31, 2010 and profit after tax Rs. 40.25 billion for the year

ended March 31, 2010. The Bank has a network of about 2,529 branches and 6,000

ATMs in India and presence in 19 countries.

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

and retail customers through a variety of delivery channels and through its specialized

subsidiaries and affiliates in the areas of investment banking, life and non-life insurance,

venture capital and asset management.

The Bank currently has subsidiaries in the United Kingdom, Russia and Canada,

branches in United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai

International Finance Centre and representative offices in United Arab Emirates, China,

South Africa, Bangladesh, Thailand, Malaysia and Indonesia. Our UK subsidiary has

established branches in Belgium and Germany.

ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and the

National Stock Exchange of India Limited and its American Depositary Receipts (ADRs)

are listed on the New York Stock Exchange (NYSE).

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History:

ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial

institution, and was its wholly-owned subsidiary. ICICI's shareholding in ICICI Bank was

reduced to 46% through a public offering of shares in India in fiscal 1998, an equity

offering in the form of ADRs listed on the NYSE in fiscal 2000, ICICI Bank's acquisition

of Bank of Madura Limited in an all-stock amalgamation in fiscal 2001, and secondary

market sales by ICICI to institutional investors in fiscal 2001 and fiscal 2002. ICICI was

formed in 1955 at the initiative of the World Bank, the Government of India and

representatives of Indian industry. The principal objective was to create a development

financial institution for providing medium-term and long-term project financing to Indian

businesses. In the 1990s, ICICI transformed its business from a development financial

institution offering only project finance to a diversified financial services group offering a

wide variety of products and services, both directly and through a number of subsidiaries

and affiliates like ICICI Bank. In 1999, ICICI become the first Indian company and the

first bank or financial institution from non-Japan Asia to be listed on the NYSE.

After consideration of various corporate structuring alternatives in the context of the

emerging competitive scenario in the Indian banking industry, and the move towards

universal banking, the managements of ICICI and ICICI Bank formed the view that the

merger of ICICI with ICICI Bank would be the optimal strategic alternative for both

entities, and would create the optimal legal structure for the ICICI group's universal

banking strategy. The merger would enhance value for ICICI shareholders through the

merged entity's access to low-cost deposits, greater opportunities for earning fee-based

income and the ability to participate in the payments system and provide transaction-

banking services. The merger would enhance value for ICICI Bank shareholders through

a large capital base and scale of operations, seamless access to ICICI's strong corporate

relationships built up over five decades, entry into new business segments, higher market

share in various business segments, particularly fee-based services, and access to the vast

talent pool of ICICI and its subsidiaries. In October 2001, the Boards of Directors of

ICICI and ICICI bank approved the merger of ICICI and two of its wholly-owned retail

finance subsidiaries, ICICI Personal Financial Services Limited and ICICI Capital

Services Limited, with ICICI bank. The merger was approved by shareholders of ICICI

and ICICI bank in January 2002, by the High Court of Gujarat at Ahmadabad in March

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2002, and by the High Court of Judicature at Mumbai and the Reserve Bank of India in

April 2002. Consequent to the merger, the ICICI group's financing and banking

operations, both wholesale and retail, have been integrated in a single entity. ICICI bank

has formulated a Code of Business Conduct and Ethics for its directors and employees.

ICICI bank (formerly Industrial Credit and Investment Corporation of India) is India's

largest private sector bank in market capitalization and second largest overall in terms of

assets. Bank has total assets of about USD 100 billion (at the end of March 2010), a

network of over 2,529 branches, 22 regional offices and 49 regional processing centers,

about 6000 ATMs (at the end of March 2010), and 24 million customers (at the end of

March 2010). ICICI bank offers a wide range of banking products and financial services

to corporate and retail customers through a variety of delivery channels and specialized

subsidiaries and affiliates in the areas of investment banking, life and non-life insurance,

venture capital and asset management. (These data are dynamic.) ICICI Bank is also the

largest issuer of credit cards in India. ICICI Bank has got its equity shares listed on the

stock exchanges at Kolkata and Vadodara, Mumbai and the National Stock Exchange of

India Limited, and its ADRs on the New York Stock Exchange (NYSE).

The Bank is expanding in overseas markets and has the largest international balance

sheet among Indian banks. ICICI Bank now has wholly-owned subsidiaries, branches and

representatives offices in 18 countries, including an offshore unit in Mumbai. This

includes wholly owned subsidiaries in Canada, Russia and the UK, offshore banking

units in Bahrain and Singapore, an advisory branch in Dubai, branches in Belgium, Hong

Kong and Sri Lanka, and representative offices in Bangladesh, China, Malaysia,

Indonesia, South Africa, Thailand, the United Arab Emirates and USA. Overseas, the

bank is targeting the NRI (Non-Resident Indian) population in particular.

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Timeline:

ICICI Bank HQ in MUMBAI

1955: The Industrial Credit and Investment Corporation of India Limited (ICICI)

was incorporated at the initiative of 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 is elected as the first Chairman

of ICICI Limited.

o ICICI emerges as the major source of foreign currency loans to Indian

industry. Besides funding from 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%.

1958: Mr.G.L.Mehta appointed the second Chairman of ICICI Ltd.

1960: ICICI building at 163, Backbay Reclamation, inaugurated.

1961: The first West German loan of DM 5 million from Kredianstalt obtained.

1967: ICICI made its first debenture issue for Rs.6 crore, which was

oversubscribed.

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1969: The first two regional offices set up in Calcutta and Madras.

1972: ICICI becomes the second entity in India to set up merchant banking

services.

o Mr. H. T. Parekh appointed the third Chairman of ICICI.

1977: ICICI sponsored the formation of Housing Development Finance

Corporation and manages its first equity public issue.

1978: Mr. James Raj appointed the fourth Chairman of ICICI.

1979: Mr.Siddharth Mehta appointed the fifth Chairman of ICICI.

1982: ICICI became the first ever Indian borrower to raise European Currency

Units.

o ICICI commences leasing business.

1984: Mr. S. Nadkarni appointed the sixth Chairman of ICICI.

1985: Mr. N.Vaghul appointed the seventh Chairman and Managing Director of

ICICI.

1986: ICICI became the first Indian institution to receive ADB Loans.

o ICICI, along with UTI, set up Credit Rating Information Services of India

Limited, India's first professional credit rating agency.

o ICICI promotes Shipping Credit and Investment Company of India

Limited.

o The Corporation made a public issue of Swiss Franc 75 million in

Switzerland, the first public issue by any Indian entity in the Swiss Capital

Market.

1987: ICICI signed a loan agreement for Sterling Pound 10 million with

Commonwealth Development Corporation (CDC), the first loan by CDC for

financing projects in India.

1988: Promoted TDICI - India's first venture capital company.

1993: ICICI Securities and Finance Company Limited in joint venture with J. P.

Morgan set up.

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o ICICI Asset Management Company set up.

1994: ICICI Bank set up.

1996: ICICI Ltd became the first company in the Indian financial sector to raise

GDR.

o SCICI merged with ICICI Ltd.

o Mr. K.V.Kamath appointed the Managing Director and CEO of ICICI Ltd

1997 : ICICI Ltd was the first intermediary to move away from a single prime rate

structure to a three-tier prime rates structure and introduced yield-curve-based

pricing.

o The name "The Industrial Credit and Investment Corporation of India Ltd"

changed to "ICICI Ltd."

o ICICI Ltd. announced the takeover of ITC Classic Finance.

1998: A new logo symbolizing the common corporate identity for the ICICI

Group was introduced.

o ICICI announced takeover of Anagram Finance.

1999 : ICICI launched retail finance - car loans, home loans and loans for

consumer durables.

o ICICI becomes the first Indian company to get listed on the NYSE through

an issue of American Depositary Shares.

2000 : ICICI Bank became the first commercial bank from India to get its stock

listed on the NYSE.

o ICICI Bank announces merger with Bank of Madura.

2001: The Boards of ICICI Ltd and ICICI Bank approved the merger of ICICI

Ltd. with ICICI Bank.

2002: ICICI Ltd merged with ICICI Bank Ltd to create India’s second-largest

bank in terms of assets.

o ICICI assigned higher than "Sovereign" rating by Moody’s.

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o ICICI Bank launched India’s first CDO (Collateralized Debt Obligation)

Fund named Indian Corporate Collateralized Debt Obligation Fund

(ICCDO Fund).

o "E-Lobby", a self-service banking centre and a first of its kind in India, is

inaugurated in Pune.

o ICICI Bank launched Private Banking.

2003: The first Integrated Currency Management Centre launched in Pune.

o ICICI Bank announced the setting up of its first-ever offshore branch in

Singapore.

o The first offshore banking unit (OBU) at SEEPZ Special Economic Zone,

Mumbai, was launched.

o ICICI Bank’s UK subsidiary launched.

o India’s first ever "Visa Mini Credit Card", a credit card 43% smaller in

dimensions was launched.

2004: Max Money, a home loan product that offers the dual benefit of higher

eligibility and affordability to a customer, introduced

o Mobile banking service in India launched in association with Reliance

Infocomm.

o India’s first multi-branded credit card with HPCL and Airtel launched.

o Kisan Loan Card and innovative, low-cost ATMs were launched in rural

India.

o ICICI Bank and CNBC TV 18 announced India’s first ever awards

recognizing the achievements of SMEs, a pioneering initiative to

encourage the contribution of Small and Medium Enterprises to the

growth of the Indian economy.

o ICICI Bank introduced 8 to 8 Banking wherein all the branches of the

Bank would remain open from 8a.m. to 8 p.m. from Monday to Saturday.

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

India.

2005: First rural branch and ATM launched in Uttar Pradesh at Delpandarwa,

Hardoi.

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o "Free for Life" credit cards launched wherein annual fees of all ICICI

Bank Credit Cards were waived off.

o ICICI Bank and Visa jointly launched mChq – a revolutionary credit card

on the mobile phone.

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

capitalization.

o ICICI Bank became the first private entity in India to offer a discount to

retail investors for its follow-up offer.

2006: ICICI Bank became the first Indian bank to issue hybrid Tier-1 perpetual

debt in the international markets.

o ICICI Bank subsidiary set up in Russia.

o Introduced a new product - ‘NRI smart save Deposits’ – a unique fixed

deposit scheme for nonresident Indians.

o Representative offices opened in Thailand, Indonesia and Malaysia.

o 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.

2007: ICICI Bank makes a USD 2 billion three-tranche international bond

offering, which becomes the largest bond offering by an Indian bank.

o Sangli Bank was amalgamated with ICICI Bank.

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

international markets through a follow-on public offer.

o 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.

2008: ICICI Bank enters USA, launches its first branch in New York

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

o ICICI Bank launched iMobile, a breakthrough innovation in banking

where practically all Internet banking transactions can now be done easily

on the mobile phone.

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4.5 ICICI Bank offers the following services to its customers:

1. Personal Banking:

Deposits

Loans

Cards

Investments

Insurance

Demat services

Wealth management

Mobile banking

Internet banking

A. Account & Deposit

ICICI Bank has designed a gamut of accounts and deposits to cater to your unique

banking needs. Add this to our extensive branch & ATM network and facilities like

mobile, phone, internet and doorstep banking, and experience banking at its best.

a) Current Account

ICICI Current Bank Account has the facility of unlimited cash deposit and cash

withdrawal and comes with an unlimited cheque book facility. This account of the ICICI

bank is suitable for: Stockiest or businessmen, partnership firms or joint stock companies,

public corporations or public authorities etc.

ICICI Bank offers you a suite of current account products that meet all your banking

requirements, these are.

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Standard Current Account: Minimum Balance Rs. 10,000 (QAB)

Classic current Account: Minimum Balance Rs. 25,000 (QAB)

Premium Current Account: Minimum Balance Rs. 50,000 (QAB)

Gold Current Account: Minimum Balance Rs. 1,00,000 (QAB)

Gold Plus Current Account: Minimum Balance Rs. 3,00,000 (QAB)

Platinum Current Account: Minimum Balance Rs. 5,00,000 (QAB)

*QAB - Quarterly Average Balance

Benefits of current account:

*Unlimited Withdrawal and Deposit

* Unlimited Cheque book

* Demand Drafts and Pay orders

* Funds Transfer ( Local or Anywhere)

* Collection of Cheques/ Drafts

* Statements, Advices, Daily statement by e-mail

* Cash withdrawal and Deposits

* Call center

* Internet Banking

* Multicity Cheque payment facility at over 155 centers

* Anywhere Banking facility

* Doorstep Banking – Pickup and delivery of Currency / Cheque

* Mobile Banking

b) Saving Account

Minimum average quarterly Balance

Metro and Urban - Rs.10,000

Semi-urban- Rs.5,000,

Rural - Rs.2,000

Interest Rate: 3.5 %p.a.

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B. Loans

ICICI Bank offers wide variety of Loans Products to suit your requirements. Coupled

with convenience of networked branches/ATMs and facility of E-channels like Internet

and Mobile Banking, ICICI Bank brings banking at your doorstep. Select any of our loan

product and provide your details online and our representative will contact you for

getting loans.

a) Home Loan

ICICI Bank Home Loans, offer unbeatable benefits to ensure that you get the best deal

without any hassles .As one of the leading home loan provider, ICICI Bank understands

how special building a new home is for you and our Home Loan help you lay the

foundation for your dream home.

ICICI offers you the most convenient home loan plans to suit your needs. With so many

attractive features in every type of home loan we offer, creating the home you always

wanted is no longer a distant dream. Some of our key benefits are:

Guidance throughout the process.

Home loan amounts suited to your needs.

Home Loan tenure upto 20 years.

Simplified documentation.

Doorstep delivery of home loan papers.

Sanction approval without having selected a property.

Free Personal Accident Insurance.

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Insurance options for your home loan at attractive premium.

b) Car Loan

Turn your dream into reality. Own that new car you have always desired, with a little

help from us. ICICI offer loans up to 90% of the ex-showroom price of the car. Our

interest rates would pleasantly surprise you. What's more, you can take up to 5 years to

repay the loan. Worried about paperwork? Relax. The process for getting a loan involves

only a few simple steps and we will tailor-make the loan to suit your needs.

Pick your choice:

Loan on the Strength of Your Income: Submit income proofs as required and

avail finance up to 90% of the ex-showroom price of the car.*

Car Loans with Fixed Interest Rates: ICICI Bank offers new car loans with fixed

rate option only.

C. INSURANCE:

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank - one of

India's foremost financial services companies-and Prudential plc - a leading international

financial services group headquartered in the United Kingdom. Total capital infusion

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stands at Rs. 47.80 billion, with ICICI Bank holding a stake of 74% and Prudential plc

holding 26%.

We began our operations in December 2000 after receiving approval from Insurance

Regulatory Development Authority (IRDA). Today, our nation-wide reach includes 1,900

branches over 210,000 advisors; and 6 banc assurance partners.

For three years in a row, ICICI Prudential has been voted as India's Most Trusted Private

Life Insurer, by The Economic Times - AC Nielsen ORG Marge survey of 'Most Trusted

Brands'. As we grow our distribution, product range and customer base, we continue to

tirelessly uphold our commitment to deliver world-class financial solutions to customers

all over India.

ICICI Prudential Life Insurance offers wide range of Insurance Plan. These are-

Term Plan

Wealth Plan

Child Plan

Health Plan

Retirement Plan

a) Term Plan:

Term insurance is the simplest and most fundamental insurance product. Term insurance

plans are designed to ensure that in the event of the policyholder’s death, the family gets

the sum assured.

Term life insurance ensures that your family receives a large lump sum amount, called

the sum assured, in the unfortunate event of death of the policyholder. By offering this

benefit at extremely competitive rates, Term insurance plans provide an opportunity to

get the protection of insurance cover at extremely affordable prices.

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b) Wealth Plan:

Wealth insurance ensures that you receive a lump sum amount of money at the maturity

of the Policy. In the unfortunate event of death during the term of the policy, your family

receives lump sum amount, called the Sum Assured. Thus it combines the benefits of

protection and saving in a single instrument.

As an individual who doesn’t desire the best from life? You would undoubtedly want to

plan your finances such that you can achieve all your goals - a car, a beautiful home and

of course, the comfort and contentment of your family. All of these goals are long term in

nature. Wealth insurance plans have been designed to ensure that you can save for these

long term goals along with the benefit of life cover and provide protection to your family.

c) Child Plan:

As a parent, you would not like to compromise your child's bright career, regardless of

the rising cost of education. All you need is a saving’s plan that is designed to provide

money at key educational milestones and take care of your loved ones future even if you

are not around. Education insurance offers you unique features which ensure that this

objective is achieved and it helps in strengthening your child’s dreams.

Education solutions ensure comprehensive financial planning for your child’s education/

developmental needs. In this you pay premium regularly or in a single lump sum and

during the key educational milestones of your child you can withdraw the money

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partially. It offers financial protection to your child’s future in the unfortunate event of

your death.

d) Health Plan:

Health insurance insures you and your family against expenses arising due to a medical

emergency and uncertainty of health such as a hospitalization or the onset of a critical

illness. It prevents a medical emergency from becoming a financial one; it ensures your

health care needs are taken care of without you having to dip into your existing savings or

compromising your future goals. Designed to ensure that you and your family get the

medical treatment whenever you need it. Secure your family now with our health plans.

e) Retirement Plan:

Retirement insurance ensures that you or your family members receive a regular pension

amount post a retirement date. You have the flexibility to choose the retirement date and

the manner in which you receive the pension.

ICICI pension plans are designed to ensure that your retirement years truly become your

golden years.  They will provide you the financial security to pursue your unfulfilled

dreams.

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D. DEMAT SERVICE:

ICICI bank provides its customers the Demat account or the online trading account to get

easy saving and investment in the Indian stock market with easy dealings. ICICI bank

provides the details of Demat account through SMS and Emails alerts.

ICICI Demat account charges:

There is no amount necessary for opening the demat account in ICICI bank. These are

valid on sub/ frequent broker charges and standard charges.

Annual service fee is Rs 500 and for frequent/sub broker is Rs 1200 for ICICI demat

account.

An agreement is essential to make in a stamp paper of Rs 100.

The ICICI demat account charges are Rs 0 for buying shares.

The selling charges applicable are-0 trade on icicidirect.com. For instruction provided

through branches-0.04% (standard charges) and 0.02% frequent/sub broker. and so and

so.

NRI Banking:

Money Transfer

Bank accounts

Investments

Property Solutions

Insurance

Loans

Business Banking:

Corporate net banking

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Cash Management

Trade services

3.8 Awards & Recognitions:

2009

ICICI Bank won 2009 Brandon Hall Excellence in Learning Award

In the Domestic Banking Awards of Finance Asia Country Awards for

Achievement, 2009 held at Hongkong, ICICI Bank won the 'Best Foreign

Exchange Bank, India' and 'Best Trade Finance Bank, India'

2010

Ms Chanda Kochhar, Managing Director & CEO, conferred the Outstanding

Woman Business Leader of the Year award by CNBC TV18

ICICI Bank awarded the most Tech-friendly Bank award by Business World

ICICI Bank received the 2010 World Finance UK award for:

a. Excellence in Remittance Business, Worldwide

b. Excellence in NRI Services, Worldwide

c. Excellence in Private Banking Business, APAC Region

2011

Ms. Chanda Kochhar, Managing Director & CEO, in the list of 25 most powerful

professional women of the country , by India Today ICICI Bank has won the

"Banking Technology Awards 2010" at The Indian Banks Association in the

following categories:

"Best Financial Inclusion Initiative" (first prize)

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Chapter 5

ANALYSIS

AND

INTREPRETATIO

N

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Table No. 1:

Table showing Age group of Respondents of SBI customers.

Age – Group No. of Respondents Percentage

18-25 20 40%

26-35 12 24%

36-45 10 20%

45 & Above 8 16%

Graph No. 1:

Graph showing Age group of Respondents.

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ANALYSIS:

The graph shows most of the respondents are between the age group 18-25 years. Some

respondents are between age group 26-36, 36-45 and some respondents are of age above

45 years of age.

INTERPRETATION:

From the graph it can be inferred that in SBI has customer from all most all age group.

Younger age group people mostly prefer SBI, because of its excellent service, very less

service charges, widely network coverage, etc. Most of the people have account in SBI

because the above reasons.

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Table No. 2:

Table showing the Income Level of Respondents.

Income Level (in Rs.) No. of Respondents Percentage

Below 1 Lakh 13 26%

1 – 3 Lakhs 22 44%

3 – 5 Lakhs 7 14%

5 & Above 8 16%

Graph No. 2:

Graph showing the Income Level of Respondents.

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ANALYSIS:

The above graph shows that most of the respondents are from the income level Rs.1-3

lakh. Very few respondents are of income level Rs.3-5 lakhs and above 5 lakhs per

annum. Some people are also there whose income is below 1 lakhs.

INTERPRETATION:

Every income level people prefer SBI, because of its services. Starting from a lower

level of income person to a higher level income person prefer SBI, may be because of

reasons like, we can open an account at a very lower deposit (i.e. starting from Rs.1000/-

for opening a savings bank account), easy deposits and withdraw also, very less charges

for ATM service (i.e. around Rs. 50/- per annum),etc.

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TABLE No. 3:

Table showing type of Account Respondents having.

Account No. of Respondents Percentage

Saving Account 20 40%

Current Account 10 20%

Fixed Account 16 32%

NRI Account 1 2%

Others 3 6%

Graph No. 3:

Graph showing type of Account Respondents having.

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ANALYSIS:

Graph shows that majority of respondents i.e. 40% are having saving bank account in

their bank. Some people are having fixed income account and some people are Current

account holders.

INTERPRETATION:

It can be inferred that saving bank account holders are more because of its very good

service. In savings bank account, customers can made deposits, which are liquefied, safe

and gets moderate rate of interest. This is to facilitate the customers to save money,

which can be utilized at later time, when the money is needed very badly.

Some customers like Business persons are having Current account. This account is to

help the customers to have both ATM and Debit card facility. The customers will be

provided with a cheque book containing a minimum of 25 leaves to draw money, when

required. No charges are applicable.

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TABLE No. 4:

Table showing Respondents take Loan from SBI.

Types of Loan No. Respondents Percentage

Housing Loan 15 30%

Personal Loan 12 24%

Vehicle Loan 10 20%

Education Loan 5 10%

Others 8 16%

GRAPH No. 4:

Graph showing Respondents take Loan from SBI.

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ANALYSIS:

The above graph shows that most of the respondents have taken Housing loan and

personal loan (i.e. 30% respondents have taken housing loan and 24% have taken

personal loan). Vehicle loan is also taken from SBI , but it is not that much as other loans.

Education loan has taken by 10% respondent only.

INTERPRETATION:

Availing loan from SBI is very easy when compared to other banks. That is the main

reason of availing loan from SBI for different purposes. For an example if a person is

having a plot in his name and want to build a house, if he/she want a loan from SBI then

he can get a loan very easily and with a very less interest rate also. SBI provide Personal

loan with a very less interest rate also. But very few respondents have taken Vehicle loan,

may be for that other banks are giving very good facilities.

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TABLE No. 5:

Table showing preference of Services by the Respondents:

Services Most preferred Moderate Less preferred

Insurance services 0 8 42

ATM services 36 14 0

Internet banking 25 17 8

Deamt Service 12 23 15

Mobile Banking 14 22 14

Core Banking 38 12 0

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GRAPH No. 5:

Graph showing preference of Services by the Respondents:

ANALYSIS:

The graph shows most of the respondent preferred ATM service of SBI, core banking

internet banking. Very less preference goes to Insurance service , Demat services, mobile

banking, etc.

INTERPRETATION:

In Insurance sector, many insurance companies like LIC, GIC, etc. are the king of the

market. And some other insurance companies like ICICI Lombard, HDFE Standard life,

etc. are well positioned themselves in the mind of customers. That may be the reason of

not preferring insurance services of SBI by the customers.

ATM service of SBI is more preferred by the customers, because of its wide range

network, available in many places, like in small towns and villages also.

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Core banking service is a most important factor while doing transaction in banks. Core

banking service of SBI is excellent and accepted by customers widely.

TABLE No. 6:

Table showing the services availed by the SBI customers through Internet banking.

Services of Internet Banking No. of Respondents Percentage

Fund Transfer 5 10%

Bills Payment 12 24%

Online Trading 11 22%

Ticket Booking 15 30%

Others 7 14%

Graph No. 6:

Graph showing the services availed by the SBI customers through Internet banking.

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ANALYSIS:

The above graph shows most of the SBI customers use their internet banking service for

ticket booking, bill payment and online trading. But very few people use internet banking

fund transfer and other purpose.

INTERPRETATION:

It can be inferred that most respondents are booking ticket through using internet

banking of SBI, because of it’s a easy process and SBI are charge very less amount for

booking ticket.

Some customer like business man and employee are do online trading and make bills

payment through internet banking because SBI charge very less amount for trading which

are liquefied and safe.

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Table No. 7:

Table showing reason to choose SBI bank services.

No. of Respondents Percentage

Effective Customer Service 12 24%

Wide Branch Network 15 30%

Transaction Cost 7 14%

Technology Used 8 16%

Others 8 16%

Graph No. 7:

Graph showing reason to choose SBI bank services.

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ANALYSIS:

The above graph shows most of the respondents saying that reason to choose SBI is they

have wide branch network 30% and they provide effective customer service24%. But

very few customers satisfied with SBI transaction cost 14%.

INTERPRETATION:

By analyzing this graph, we can conclude that most of the people is influenced by the

quick and speedy services provided by SBI bank because they have wide branch network

in urban and rural area also, and most of the people influenced by the SBI provide

effective customer services because people the SBI have lot of customer care executive in

various city. If you make you call in any time they listen your problem and give

salutation.

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Table No. 8:

Table showing Age group of Respondents of ICICI bank customers.

Age - Group No. of Respondents Percentage

18-25 5 10%

26-35 29 58%

36-45 15 30%

45 & Above 1 2%

Graph No. 8:

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

Graph showing Age group of Respondents of ICICI bank customers.

ANALYSIS:

The graph shows most of the respondents are between the age group 26 -35 years. Some

respondents are between age group 36 -45, 18 -25 and very less respondents are of above

45 years of age.

INTERPRETATION:

From the graph it can be inferred that in ICICI has customer from all most all age group.

26- 35 age group people mostly prefer ICICI, because of its excellent service, widely

network coverage, and new technology used by the Bank, etc. Most of people have

account in ICICI because the above reason.

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Table No. 9:

Table showing the Income level of Respondents of ICICI bank.

Income Level No. of Respondents Percentage

Below 1 Lakh 2 4%

1 – 3 Lakhs 10 20%

3 – 5 Lakhs 22 44%

5 & Above 16 32%

Graph No.9:

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Graph showing the Income level of Respondents of ICICI bank.

ANALYSIS:

The above graph shows that most of the respondents are from the income level Rs. 3- 5

lakhs. Very few respondents are of income level Rs. below 1 lakh and 1-3 lakhs. Some

people also there whose income is above 5 lakhs per annum.

INTERPRETATION:

High income level people prefer ICICI, because of its services. Very few lower level

income person prefer ICICI, may be because of reasons like, we can open an account in

ICICI bank at high deposit (i.e. starting from Rs. 10000/- for opening a saving bank

account), easy deposits and withdraw also, and less charges for ATM service (i.e. around

100/- per annum) etc.

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Table No. 10:

Table showing type of account Respondents having.

Account No. of Respondents Percentage

Saving Account 12 24%

Current Account 25 50%

Fixed Account 8 16%

NRI Account 2 4%

Others 3 6%

Graph No. 10:

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Graph showing type of account Respondents having.

ANALYSIS:

Graph shows that majority of respondents i.e. 50% are having current bank account in

their bank. Some people are having Fixed income account and some people are saving

account holders.

INTERPRETATION:

It can be inferred that current bank account holders are more because of its very good

service. Current bank account help the customer to have both ATM and Debit card

facility, Unlimited Withdrawal and deposit facility, unlimited cheque book and doorstep

banking etc.

Some customers like employees are having saving account because of its very good

service. In saving bank account, customers can made deposits, which are liquefied, safe

and gets moderate rate of interest. Some customers are having fixed income account this

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is to facilitate the customers to save money, which can be utilized at later time, when the

money is needed very badly.

Table No. 11:

Table showing Respondents take Loan from ICICI bank.

Loan No. of Respondents Percentage

Housing Loan 14 28%

Personal Loan 8 16%

Vehicle Loan 22 44%

Education Loan 2 4%

Others 4 8%

Graph No. 11:

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Graph showing Respondents take loan from ICICI bank.

ANALYSIS:

The above graph shows that most of the respondents have taken Vehicle loan and

housing loan (i.e. 44% respondents have taken vehicle loan and 28% have taken housing

loan). Personal loan is also taken from ICICI bank and education loan has taken by 4%

respondents only.

INTERPRETATION:

Availing loan from ICICI bank is easy. This is the main reason of availing loan from

ICICI for different purpose. For an example if a person want to a car on own name, if

he/she want a loan from ICICI bank then get a loan very easily and with a very less

interest rate also. ICICI provide housing loan with a interest rate also. But very few

respondents have taken education loan, may be for that other bank are giving very good

facilities.

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Table No. 12:

Table showing preference of services by Respondents.

Service Most preferred Moderate Less preferred

Insurance Service 12 10 28

Internet Banking 42 7 1

Mobile Banking 20 22 8

ATM Service 36 14 0

Demat Service 16 20 14

Core Banking 40 10 0

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Graph No. 12:

Graph showing preference of services by Respondents.

ANALYSIS:

The graph shows most of the respondents preferred Internet banking service, ATM

service, Core banking service of ICICI bank. Very less preference goes to Insurance

service and Mobile banking etc.

INTERPRETATION:

Internet banking service of ICICI is more preferred by the customers, because of most

respondents are either business man or employees and ICICI bank provide excellent

service in this sector.

Core banking service is a most important factor while doing transaction in banks. Core

banking service of ICICI is good and accepted by customer.

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In Insurance sector, many insurance companies like LIC are king of the market some

other insurance companies like HDFC standard life, Bajaj Alliance etc. are well

positioned themselves in the mind of the customers. That may be reason of less preferred

insurance services of ICICI by customers.

Table No. 13:

Table showing the services availed by the ICICI customers through Internet banking.

Services of Internet Banking No. of Respondents Percentage

Fund Transfer 13 26%

Bills Payment 12 24%

Online Trading 15 30%

Ticket Booking 6 12%

Others 4 8%

Graph No. 13:

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Graph Table showing the services availed by the ICICI customers through Internet Banking.

ANALYSIS:

The above graph shows most of the ICICI bank customer use their internet banking

service for online trading, fund transfer, bills payment and others purpose. But very few

people use internet banking for ticket booking.

INTERPRETATION:

It can be inferred that most respondents are online trading (30%),bills payment (24%),

and fund transfer(26%) through using internet banking of ICICI, because of the ICICI

provide excellent service in this sector and charge less amount for online trading other

then, but few respondents are using booking ticket through internet banking because of

the ICICI bank charged for this service few more amount other then.

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Table No. 14:

Table showing reason to choose ICICI bank services.

No. of Respondents Percentage

Effective Customer Service

17 34%

Wide Branch Network 10 20%

Transaction Cost 5 10%

Technology Used 12 24%

Others 6 12%

Graph No. 14:

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Graph showing reason to choose ICICI bank services.

ANALYSIS:

The above graph shows most of the respondents saying that reason to choose ICICI is

they provide effective customer service34%, technology used by ICICI bank 24% but

very few customers satisfied with ICICI transaction cost 10%.

INTERPRETATION:

By analyzing this graph, we can conclude that most of the people influenced by the SBI

provide effective customer services because people say that ICICI bank tag line is

KHAYAL AAPKA and the ICICI bank fulfill the requirement of on his tag line because

in the urban area the ICICI branch are open morning 10 am to 8 pm. And there staff

members behavior to the customer are very good, the ICICI have lot of customer care

executive in various city. If you make you call in any time they listen your problem and

give salutation.

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Comparison between ICICI and SBI banks

ICICI bank is the largest private sector bank in India and the second largest commercial

bank in India. It has branches all over India and even in smaller towns in South India

after the takeover of Bank of Madurai. The bank also has foreign subsidiaries like ICICI

bank, Canada in Canada, Britain and Russia, representative offices in USA, China, UAE,

Bangladesh, South Africa and branches in Bahrain, Singapore .

It offers a platform for online share trading through ICICI Direct and

insurance services- ICICI Prudential. NRI services include money transfer

through Money2India, which offer better foreign exchange rates for lower

amounts compared to other services.

Like most private sector banks, all ICICI bank branches in India are

networked. You can access your account from any ICICI bank branch in

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India. Anyone can also deposit cash/local cheque in your account at any

branch of ICICI bank.

Also they have very convenient bank timings and are open for 12 hours from

8.00 a.m to 8 p.m from (Monday to Saturday).

You can deposit cash in your own account at the ATM, for depositing cash

into a third party account, you have to visit the branch.

Since ICICI bank was established after 1991 it offers online banking where

you can check the balance in your account any time. The interface for current

accounts is much better and user friendly compared to that for their saving

account.

ICICI charged for opening a saving account min. amount Rs 5000 and for

current account min. amount Rs 10000. ICICI give interest rate for saving

account 3.25% per annum and for fixed deposit its depending to duration of

time and amount.

For savings account, up to 3 cash deposits per quarter (3 months) at the non

base branch can be made at no cost. For additional cash deposits, the bank

charges the recipient Rs 100 (+ service tax) per deposit. For outstation

cheques, ICICI bank charges a minimum of Rs 30 (+ service tax) for savings

accounts.

They have discontinued the auto sweep-in facility, where the amount in

savings accounts was automatically converted into a fixed deposit, if it

exceeded Rs 15000. With the decline in interest rates for loans, providing this

facility is no longer profitable for the bank.

ICICI bank provides a large option in Insurance sector. They have varity of

product to the customer.

ICICI banks offers mobile banking, internet banking services, in this segment

there are no any bank provide better service compare to ICICI.

SBI is   the largest public sector bank in India :-

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SBI has wide network branches and ATMs all over India. SBI has one of the

largest network of ATMs in the Asia Pacific region. Many branches of State Bank

of India are computerized.

SBI timings vary according to location, for example the Jaynagar, Bangalore

branch of State Bank of India is open between 10.15 am to 3pm (Tuesday-

Sunday)

The minimum amount charge to opening a saving account in SBI bank is Rs 1000

and for current account they charge min. amount 5000. SBI give interest rate for

saving account 3.25% per annum and for fixed deposit its depending to duration

of time and amount.

State Bank of India has varity of product and services to his/her customer like-

loan, Insurance; demat, Mobile banking, Internet banking, Core banking, etc.

In loan segment SBI charge low interest rate compare to ICICI bank.

SBI debit cum visa card allows booking of railways tickets, air tickets, movies

ticket and parching more through internet banking and swap the card. In booking

railways tickets SBI charge 10 rupees per transaction. State Bank of India is the

largest issuer of debit cards (Maestro) in India

State Bank customers who have to wait a long time to process a bank transaction

can register their complaint through a touch screen device for customer feedback

service at the branch. The information is recorded and processed in the central

server.

All government taxes like income tax, sales tax, service tax can be paid at any

branch of SBI.

State Bank of India has 52 foreign offices in 34 countries including Australia,

UK, USA, Canada, Bahrain, Nigeria, Bangladesh, Nepal, and Bhutan Sri Lanka. 

These are useful for foreign trade transactions like opening of Letter of Credit.

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Chapter 6

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

FINDINGS,

CONCLUSION

AND

Suggestions

FINDINGS

30% respondents to choose the SBI bank is because the bank is providing

wide branch network to the customers.

24% respondents are saying the reason to choose the services of the SBI

bank is because they are good in effective customer service.

The income level of the respondents who are having an account in SBI

bank falling under the income level of Rs. 1 – 3 Lakhs Yearly.

The age group of 18yrs – 25yrs respondents mostly is having an account

in SBI bank.

The both gender are equally having an account in SBI bank.

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Many of respondents to choose saving account in SBI bank.

Most of respondents taking Home loan through SBI bank, because they

satisfied with interest rate charged by SBI.

30% of respondents are choosing Unit linked insurance plan in SBI.

Many of the respondents are not aware of the many services rendered by

the SBI bank. The few are deposit of cash in ATM, request for cheque

book in ATM, end of the day balance in mobile, etc.

Sum Of the respondents to choose the ICICI bank is because the bank is

more reliable to the customers.

Many of the respondents are saying the reason to choose the services of

the ICICI bank is because they are good in efficient customer service and

efficient complaint handling.

The income level of the respondents who are having an account in ICICI

bank falling under the income level of Rs. 3 – 5 Lakhs Yearly.

The age group of 25yrs - 35yrs respondents mostly is having an account

in ICICI bank.

The male gender is mostly having an account in ICICI bank.

Many of the respondents are not aware of the many services rendered by

the ICICI bank. The few are deposit of cash in ATM, request for cheque

book in ATM, end of the day balance in mobile, etc.

CONCLUSIONS

The customers now days are not only exposed of what type of service is being provided

by banks in India but in the world as a whole. They expect much more than what is

actually being provided. So the now coming days SBI and ICICI bank have to provide

and cater to all the needs of the customers otherwise it is difficult to survive in the

competition coming up.

They not only expect the safety of money but also best ways to invest that money which

need to be fulfilled. SBI and ICICI bank need to have a better outlook towards to actually

what customers are requiring. Entries of the private sector banks have made the

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competition tougher. If a bank is not functioning properly it is being closed. So it is

difficult to face these types of conditions. Here a simple philosophy can work that

customers are God and we need to follow this to survive and serve better.

The SBI and ICICI bank are poised for explosive growth. In this, scenario, it is

imperative that banks adopt technology at an aggressive Pace, if they wish to remain

competitive. Money makes a case for these banks to outsource their technology

infrastructure requirement, thus enabling early adoption and increased efficiencies.

In the prevailing scenario, a number of banks have adopt a new development strategy of

infrastructure outsourcing, to lower the cost of service channels. As a result, other banks

too will need to align their reinvented business models. The required changes at both the

business and technology levels are enormous. In a highly competitive banking market,

early adopters are profiting from increased efficiencies.

SUGGESTIONS

Banks should obey the RBI norms and provide facilities as per the norms, which

are not being followed by these banks. While the customer must be given prompt

services and the bank officer should not have any fear on mind to provide the

facilities as per RBI norms to the units going sick.

Banks should increase the interest rate of saving account.

Banks should provide loan at the lower interest rate and education loans should be

given with ease without much documentation. All the banks must provide loans

against shares.

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Fair dealing with the customers. More contribution from the employee of the

bank. The staff Should be co-operative, friendly and must be capable of

understanding the problems of customers

Internet banking facility must be made available to customer free of cost in both

banks.

Prompt dealing with permanent customers and speedy transaction without

harassing the customers.

Each section of both banks should be computerized even in rural areas also.

Real time gross settlement can play a very important role.

More ATM coverage should be provided for the convenience of the customers.

No limit on cash withdrawals on ATM cards.

The bank should bring out new schemes at time-to-time so that more people can

be attracted. Even some gifts and prizes may be offered to the customers for their

retention.

24 hours banking should be induced so as to facilitate the customers who may not

have a free time in the daytime. It will help in facing the competition more

effectively.

The charge for saving account opening in ICICI bank is high, so they should also

be reduced.

Customers generally complain that full knowledge is not granted to them. Thus

the bank should properly disclose the features of the product and services to the

customers. Moreover door to door services can also be introduced by SBI and

ICICI bank.

The need of the customer should properly be understood so that customer feels

satisfied. The relationship value should be maintained.

The branch should promote cooperation and coordination among employees

which help them in efficient working.

Maintenance of proper hierarchy should be done. A good hierarchy set up can

ensure better results within the bank.

Banking sector is improving by leaps but still it needs to be improved. Proper and

efficient relationship staffs having knowledge for one stop banking, customer friendly

atmosphere, and better rate of interest are need of the hour.

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BIBLIOGRAPHY

BOOKS:

Kothari C.R. (1990) Research Methodology: Method and Techniques; Wishva

Prakashan, New Delhi.

Bodie.Z, Kane.A & Mracus.J : Essentials of Investments.

Prof. E Gordon & Dr. K. Natrajan “Banking Theory Law and Practice”.

“Indian financial System & Commercial Banking” by Khan Masood Ahmed

“Banking in India” by P.N.Varshney

MAGAZINS:

Business World

Business Today

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The Smart Manager

WEBSITES:

www.centurionbop.co

www.statebankofindia.com

www.icicibank.com

www.rbi.org.in

www.iba.org.in

www.knowledgestom.com

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

ANNEXURE

QUESTIONNAIRE FOR “A Comparative study of customer services

provided by SBI and ICICI bank in Bangalore”

Dear Sir/Madam, I Rakesh Kumar, student of RV Institute of Management

Bangalore doing my MBA project on a study on “A Comparative study of

customer services provided by SBI and ICICI bank in Bangalore”. This

questionnaire is to assess your view and opinion about Customer Services

provided by these banks. Your responses will be maintained in strictly

confidence and this will be used for ACADEMIC PURPOSE ONLY.

Personal Details:-

A) NAME:

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

B) ADDRESS:

C) GENDER: MALE FEMALE

D) AGE GROUP: a) 18- 25 b) 25- 35

c) 35- 40 d) Above 40

E) Occupation: a) Government Employee b) Business Man

c) Professional d) Others

F) ANNUAL INCOME : a) BELOW 1 LAKH b) 1-3 LAKHS

c) 3-5 LAKHS d) ABOVE 5 LAKHS

1) Which type of account do you hold in the bank?

a) Saving account b) current account c) Fixed account

d) NRI account e) others

2) What are the interest rates provided by your bank on deposit?

a) 3%-5% b) 5%-7% c) 7%-9%

d) above 9%

3) Are you satisfied with the interest rate provided by the bank?

a) Yes b) Friends

If no what is the reason

4) Have you taken any loan from bank?

a) Yes b) No

5) If yes, then for what purpose?

a) Housing loan b) Personal loan

c) Vehicle loan d) Education loan e) other

6) What is the interest rate charged by your bank on loan?

a) 9%-10% b) 10%-11% c) 11%-12%

d) 12%-13% e) above 13%

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7) Are you satisfied with the interest rate charged by the bank?

a) Yes b) No

If No, what is the reason

8) Which services are used by you through an ATM?

a) Cash withdrawal b) Cash deposit c) Bills payment

d) A/c transfers f) others

9) What are the problem you have uncounted while using an ATM?

a) The max. Withdraw amount is limit

b) The No. of ATM is not enough

c) ATM not able to print slip when demanded

d) ATM working too slowly

f) No any Problem

10) Which services are provided through Mobile banking by your bank?

a) Bills payment b) Know the cheque details c) Sms alerts

d) Booking ticket e) Mobile recharge f) others

11) Is your bank providing Insurance service?

a) Yes b) No

12) If yes then which type of Insurance plan they provided?

a) Protection Plan b) Saving Plan c) child Plan

d) Pension Plan e) Unit Linked Plan f) others

13) Which services are provided by Internet banking by your bank?

a) Fund transfer b) Bills payment c) Online trading

d) Ticket booking e) others

14) Is your bank provides stock trading service?

a) Yes b) No

15) What are the demat a/c brokerage fee charged in a month by your bank?

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a) 0.15%-0.25% b) 0.25%-0.35%

c) 0.35%-0.45% d) above 0.45%

16) Please rate the following services provided by your bank as per your preference.

More preferred Moderate Less preferred

Insurance Service

ATM Service

Internet Banking

Demat Service

Mobile Banking

Core Banking

17) When you think of your bank what comes first in your mind?

a) Customer Service

b) Personalized Service

c) Wide Branch Network

Others pls. specify

18) Suggestions if any,

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Thank You for spending your precious time in giving your responses

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