Management Thesis - II Final Report On A Comparative study of customer services in ICICI and SBI.

Submitted by M.J.VIDHYAA II YEAR MBA INC KEELKATTALAI

Under the Guidance of DR.J.GAYATRI FACULTY GUIDE INC KEELKATTALAI

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ICFAI National college, KEELKATTALAI
(Certificate from Faculty Supervisor)

CERTIFICATE

This is to certify that the Management Thesis titled “A Comparative study of

customer services in ICICI and SBI” submitted by M.J.VIDHYAA Enroll
No: 7NBCT011 during Semester IV of the MBA Program (The Class of 2009) embodies original work done by him/her. Signature of the Faculty Supervisor Name (in Capitals) Designation Campus
: MRS.DR.J.GAYATHI

: Faculty Member - Marketing
: KEELKATTALAI

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Table of contents

Chapter 1: Introduction

07 - 33

1.1 Overview of banking Industry 1.2 Company Profile 1.3 Research objective 1.4 Review of literature 1.5 Key Words Chapter 2: Research Methodology 2.1 Sampling Design 2.2 Pilot Study 2.3 Research Methodology 2.4 Limitations of the Study Chapter 3: Data Analysis and Interpretation Chapter 4: Findings, Recommendations and Conclusion Chapter 5: Appendices

7 13 31 31 32 34 – 37 35 36 37 37 38 - 81 82 - 85 86 - 91

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J. I also extend my thankfulness to my beloved parents and friends for their continuous encouragement at every moment.Gayatri.ACKNOWLEDGEMENT I am grateful to thank our Campus Head MR.Srinivasan for giving me this great opportunity to do my project.R.Dr. faculty guide who has given me moral support to do my project work. I also extent my thanks to. 4 .

VIDHYAA) (7NBCT011) Faculty Guide 5 .DECLARATION I here by declare that the project entitled “A Comparative study of customer services in ICICI and SBI” has been completed by me.J. (M. I assure that this project is unique and has not been reproduced or copied from any other soures.

INTRODUCTION 6 .

5% respectively.1. The oldest bank in existence in India is the State Bank of India.000 ATMs. The oldest bank in existence in India is the State Bank of India. Indian merchants in Calcutta established the Union Bank in 1839. which started in 1786. the public sector banks hold over 75 percent of total assets of the banking industry. relegating it to commercial banking functions. as did their successors. They have a combined network of over 53. with the private and foreign banks holding 18. In 1969 the government nationalized the 14 largest commercial banks. When the American Civil War 7 .000 branches and 17. both of which are now defunct.2% and 6. According to a report by ICRA Limited. is the oldest Joint Stock bank in India. which in 1935 formally took over these responsibilities from the then Imperial Bank of India. and the Bank of Hindustan. The Allahabad Bank. Currently. the government nationalized the six next largest in 1980. The three banks merged in 1925 to form the Imperial Bank of India. 29 private banks (these do not have government stake. Early history: Banking in India originated in the last decades of the 18th century. the Reserve Bank was nationalized and given broader powers. but it failed in 1848 as a consequence of the economic crisis of 1848-49. a government-owned bank that traces its origins back to June 1806 and that is the largest commercial bank in the country. For many years the Presidency banks acted as quasi-central banks. a rating agency. This was one of the three presidency banks. which almost immediately became the Bank of Bengal. all three of which were established under charters from the British East India Company. The first banks were The General Bank of India. became the State Bank of India. Central banking is the responsibility of the Reserve Bank of India. which.1 OVERVIEW OF THE BANKING INDUSTRY: Banking in India originated in the last decades of the 18th century. which originated in the Bank of Calcutta in June 1806. After India's independence in 1947. they may be publicly listed and traded on stock exchanges) and 31 foreign banks. upon India's independence. India has 88 scheduled commercial banks (SCBs) . the other two being the Bank of Bombay and the Bank of Madras. established in 1865 and still functioning today.27 public sector banks (that is with the Government of India holding a stake).

" By the 1900s. and so became a banking center. All these banks operated in different segments of the economy. mainly due to the trade of the British Empire. in 1906. the Indian economy was passing through a relative period of stability. divided by solid wooden bulkheads into separate and cumbersome compartments. followed.The fervour of Swadeshi movement lead to establishing of many private banks in Dakshina Kannada 8 . the market expanded with the establishment of banks such as Punjab National Bank. Punjab National Bank is the first Swadeshi Bank founded by the leaders like Lala Lajpat Rai. We are like some old fashioned sailing ship. and the social. promoters opened banks to finance trading in Indian cotton. Around the turn of the 20th Century. in Mumbai . This segmentation let Lord Curzon to observe.stopped the supply of cotton to Lancashire from the Confederate States. Bank of Baroda. The Swadeshi movement in particular inspired local businessmen and political figures to found banks of and for the Indian community. Canara Bank and Central Bank of India. Around five decades had elapsed since the Indian Mutiny. Indian Bank. With large exposure to speculative ventures. in the 1860s. most of which served particular ethnic and religious communities.both of which were founded under private ownership. "In respect of banking it seems we are behind the times. Corporation Bank. and another in Bombay in 1862. The presidency banks dominated banking in India but there were also some exchange banks and a number of Indian joint stock banks. The Comptoire d'Escompte de Paris opened a branch in Calcutta in 1860. most of the banks opened in India during that period failed. Indian joint stock banks were generally under capitalized and lacked the experience and maturity to compete with the presidency and exchange banks. industrial and other infrastructure had improved. A number of banks established then have survived to the present such as Bank of India. Calcutta was the most active trading port in India. Foreign banks too started to arrive. mostly owned by Europeans. Subsequently. then a French colony. The exchange banks. concentrated on financing foreign trade. Sardar Dyal Singh Majithia. banking in India remained the exclusive domain of Europeans for next several decades until the beginning of the 20th century. particularly in Calcutta. branches in Madras and Pondicherry. The depositors lost money and lost interest in keeping deposits with banks. in 1895 in Lahore and Bank of India. Indians had established small banks.

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 9 . and it took its toll with banks simply collapsing despite the Indian economy gaining indirect boost due to war-related economic activities. Hence undivided Dakshina Kannada district is known as "Cradle of Indian Banking". The years of the First World War were turbulent. Lakhs) Paid-up Capital (Rs.Four nationalised banks started in this district and also a leading private sector bank. 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 Udupi district which were unified earlier and known by the name South Canara ( South Kanara ) district. and two years thereafter until the independence of India were challenging for Indian banking. At least 94 banks in India failed between 1913 and 1918 as indicated in the following table: Years Number of banks that failed Authorized capital (Rs.

the Indian banking industry has become an important tool to facilitate the development of the Indian economy. and a debate has ensued about the possibility to nationalize the banking industry. 1969. • • However. The Government of India initiated measures to play an active role in the economic life of the nation. Nationalization: By the 1960s. Jayaprakash Narayan." 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. Indira Gandhi. described the step as a "masterstroke of political sagacity. despite these provisions. and the GOI issued an ordinance and nationalized the 14 largest commercial banks with effect from the midnight of July 19." Within two weeks of the issue of the ordinance. This resulted into greater involvement of the state in different segments of the economy including banking and finance." The paper was received with positive enthusiasm. 1969. banks in India except the State Bank of India. In 1949. and it became an institution owned by the Government of India. a national leader of India. the 10 . it has emerged as a large employer. The major steps to regulate banking included: • In 1948. the Reserve Bank of India. control and regulations. the Banking Regulation Act was enacted which empowered the Reserve Bank of India (RBI) "to regulate. her move was swift and sudden. Thereafter. and no two banks could have common directors.Post-independence: The partition of India in 1947 adversely impacted the economies of Punjab and West Bengal. and the Industrial Policy Resolution adopted by the government in 1948 envisaged a mixed economy. continued to be owned and operated by private persons. This changed with the nationalization of major banks in India on 19 July. control. India's central banking authority. and inspect the banks in India. India's independence marked the end of a regime of the Laissez-faire for the Indian banking. was nationalized. paralyzing banking activities for months. At the same time. thethen 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 nationalized banks were credited by some. A second dose of nationalization of 6 more commercial banks followed in 1980. where all Foreign Investors in banks may be given voting rights which could exceed the present cap of 10%. ICICI Bank and HDFC Bank. The new wave ushered in a modern outlook and tech-savvy methods of working for traditional banks. Later on. private banks and foreign banks.Go home at 4) of functioning. closer to the average growth rate of the Indian economy. It was the only merger between nationalized banks and resulted in the reduction of the number of nationalized banks from 20 to 19. This move.at present it has gone up to 49% with some restrictions. the then Narsimha Rao government embarked on a policy of liberalization. till this time. were used to the 4-6-4 method (Borrow at 4%. the nationalized banks grew at a pace of around 4%.All this led to the retail boom in India. Liberalization: In the early 1990s. After this. The next stage for the Indian banking has been setup with the proposed relaxation in the norms for Foreign Direct Investment. along with the rapid growth in the economy of India. Bankers. namely. The new policy shook the Banking sector in India completely. With the second dose of nationalization. which has seen rapid growth with strong contribution from all the three sectors of banks. including Home minister P.Parliament passed the Banking Companies (Acquisition and Transfer of Undertaking) Bill. revitalized the banking sector in India. and included Global Trust Bank (the first of such new generation banks to be set up). until the 1990s.Lend at 6%. UTI Bank(now re-named as Axis Bank). and it received the presidential approval on 9 August. 11 . to have helped the Indian economy withstand the global financial crisis of 2007-2009. These came to be known as New Generation techsavvy banks. in the year 1993. licensing a small number of private banks. People not just demanded more from their banks but also received more. The stated reason for the nationalization was to give the government more control of credit delivery. 1969. which later amalgamated with Oriental Bank of Commerce. the GOI controlled around 91% of the banking business of India. Chidambaram. government banks. the government merged New Bank of India with Punjab National Bank.

product range and reach-even though reach in rural India still remains a challenge for the private sector and foreign banks. 12 . vehicle and personal loans. 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.Currently (2007). In terms of quality of assets and capital adequacy. 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. especially retail banking. strong and transparent balance sheets relative to other banks in comparable economies in its region. 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. the Reserve Bank of India allowed Warburg Pincus to increase its stake in Kotak Mahindra Bank (a private sector bank) to 10%. and asset sales. The Reserve Bank of India is an autonomous body. In March 2006. with minimal pressure from the government. One may also expect M&As. mortgages and investment services are expected to be strong. takeovers. banking in India is generally fairly mature in terms of supply. In recent years critics have charged that the non-government owned banks are too aggresive in their loan recovery efforts in connection with housing. Indian banks are considered to have clean. There are press reports that the banks' loan recovery efforts have driven defaulting borrowers to suicide.

credit cards and insurance.2 Company Profile of SBI: State Bank of India (SBI) is India's largest commercial bank. SBI has a vast domestic network of over 9000 branches (approximately 14% of all bank branches) and commands one-fifth of deposits and loans of all scheduled commercial banks in India. primary dealership in government securities. fund management. 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. In 1955. The State Bank Group includes a network of eight banking subsidiaries and several non-banking subsidiaries offering merchant banking services. 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. 13 . The eight banking subsidiaries are: 1-State Bank of Bikaner and Jaipur (SBBJ) 2-State Bank of Hyderabad (SBH) 3-State Bank of India (SBI) 4-State Bank of Indore (SBIR) 5-State Bank of Mysore (SBM) 6-State Bank of Patiala (SBP) 7-State Bank of Saurashtra (SBS) 8-State Bank of Travancore (SBT) The origins of State Bank of India date back to 1806 when the Bank of Calcutta (later called the Bank of Bengal) was established.1. factoring services. In 1921.

The government amalgamated Bank of Bengal and two other Presidency banks. 1). Roots: The State Bank of India traces its roots to the first decade of 19th century. SBI's International Banking Group delivers the full range of cross-border finance solutions through its four wings . authorized the Reserve Bank of India. In recent years the bank has focused on three priorities. 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. and were the result of the royal charters.Today. the Foreign Offices division. with the Reserve Bank of India taking a 60% ownership stake. the Foreign Department and the International Services division. With an asset base of $126 billion and its reach. which saw many of its best and brightest defect to the private sector. If one measures by the number of branch offices and employees. to acquire a controlling interest in the Imperial Bank of India. later renamed the Bank of Bengal. All these Presidency banks had been incorporated as joint stock companies. enacted by the Parliament of India. The Imperial Bank of India continued as a joint stock company. Established in 1806 as Bank of Calcutta. SBI is the largest bank in the world. Until the establishment of a central bank in India the Imperial Bank and its early predecessors served as India's central bank.the Domestic division. which is the central banking organization of India. SBI provides various domestic. which was renamed the State Bank of India on 30 April 1955. 2). when the Bank of Calcutta. namely. reducing its huge staff through Golden handshake schemes known as the Voluntary Retirement Scheme. computerizing its operations and 3). it is the oldest commercial bank in the Indian subcontinent. State Bank of India (SBI) has spread its arms around the world and has a network of branches spanning all time zones. international and NRI products and services. through its vast network in India and overseas. The State Bank of India Act 1955. and named the reorganized banking entity the Imperial Bank of India. The government nationalized the bank in 1955. the Bank of Bombay (incorporated on 15 April 1840) and the Bank of Madras on 27 January 1921. at least in terms of issuing the currency. was established on 2 June 1806. State Bank of India (SBI) (LSE: SBID) is the largest bank in India. it is a regional banking behemoth. 14 .

• • • 15 . 1809: This became the Bank of Bengal. Currently. 1921: all three banks amalgamated to form Imperial Bank of India. In tune with the first Five Year Plan. consisting of over 314 million equity shares at a total amount of over 355 billion rupees. 1959: State Bank of India (Subsidiary Banks) Act passed. the government merged it with State Bank of India. July 1. April 15. January 2. which will create a "mega bank". the group is merging all the associate banks into SBI. 1980s When Bank of Cochin in Kerala faced a financial crisis. June 29. and one hopes. 1843: Bank of Madras established. The State Bank group refers to the seven associates and the parent bank. 1955: State Bank of India formed. emphasizing the development of rural India. 1840: Bank of Bombay established. 1806: The Bank of Calcutta established. streamline operations and unlock value.Timeline: • • • • • • • June 2. becomes the first Indian bank to be nationalized. These were originally banks belonging to princely states before the government nationalized them in 1959. All the banks use the same logo of a blue keyhole. • • • Associate banks: There are seven other associate banks that fall under SBI. July 1. 1861: Paper Currency Act passed. the government integrated these banks with the State Bank of India to expand its rural outreach. January 27. enabling the State Bank of India to take over eight former State-associated banks as its subsidiaries. 2007: The Government of India today acquired the entire Reserve Bank of India (RBI) shareholding in State Bank of India (SBI). They all use the "State Bank of" name followed by the regional headquarters' name.

• • • • • • • State Bank of Bikaner & Jaipur State Bank of Hyderabad State Bank of Indore State Bank of Mysore State Bank of Patiala State Bank of Saurashtra State Bank of Travancore Foreign Offices: State Bank of India is present in 32 countries. and in some cases conducts retail operations. where it has 84 offices serving the international needs of the bank's foreign customers. The focus of these offices is India-related business. Foreign Branches: SBI has branches in these countries: The Israeli branch • • • • • • • • • • • • • • Australia Bahrain Bangladesh Belgium Canada Dubai France Germany Hong Kong Israel Japan People's Republic of China Republic of Maldives Singapore 16 .

the bank has sought to expand its overseas operations by buying foreign banks.K. According to the Forbes 2000 listing it tops all Indian companies. In recent years. With more than 9400 branches and a further 4000+ associate bank branches. most notably during Chandra Shekhar's tenure as Prime Minister of India. urban and semi-urban branches under its Core Banking System (CBS). India location.A Subsidiaries and Joint Ventures: In addition to the foreign branches above. The State Bank of India has had steady growth over its history. State Bank of India has often acted as guarantor to the Indian Government. Following its arch-rival ICICI Bank. The bank has the largest ATM network in the country having more than 5600 ATMs [1]. 17 . SBI has these wholly owned subsidiaries and joint ventures: • • • • • Nepal State Bank Limited SBI Mauritius Indian Ocean International Bank (Mauritius) SBI Canada SBI California Growth: Mumbai. U.• • • • • • South Africa Sri Lanka Sultanate of Oman The Bahamas U. though the Harshad Mehta scam in 1992 marred its image. with over 4500 branches being incorporated so far. It is the only Indian bank to feature in the top 100 world banks in the Fortune Global 500 rating and various other rankings. State Bank of India has electronically networked most of its metropolitan. the SBI has extensive coverage.S.

over 10. Vol. No.Fortune Global 500 Ranking – 2007: SBI debuted in the Fortune Global 500[2] at 498 in 2006. 12).000 domestic and 70 foreign offices and branches.000 by the end of 2007 raising the total number to 8. ATM network. such as the IP telephone network. Stockholders' Equity 9. As of September 20. As per fortune 500-2007 following are the data for SBI in $ million.600. State Bank of India launched a project in 2002 to network more than 14.119.3.786. Ltd .000 branches have been covered. carrying all applications. 18 . Assets 187. Internet banking and internal e-mail.2 Group companies: • • • • • • • • SBI Capital Markets Ltd SBI Mutual Fund (A Trust) SBI Factors and Commercial Services Ltd SBI DFHI Ltd SBI Cards and Payment Services Pvt Ltd SBI Life Insurance Co. 20. Profits 1. The new infrastructure has enabled the bank to further grow its ATM network with plans to add another 3.4. The first and the second phases of the project have already been completed and the third phase is still in progress. As of December 2006. Revenues 15. The new infrastructure serves as the bank's backbone.1.Bancassurance (Life Insurance) SBI Funds Management Pvt Ltd SBI Canada IT Initiatives: According to PM Network (December 2006. 2007 SBI has 7236 ATMs.547.407. In 2007 it moved up to 495.

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 India's largest bank amongst all public and private sector banks operating in India. State Bank of India (Canada). State Bank of India is actively involved since 1973 in nonprofit activity called Community Services Banking. State Bank of India (California). 19 . 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 State Bank Of India NRI Account Banking Subsidiaries: • • • • • • • State Bank of Bikaner and Jaipur (SBBJ) State Bank of Hyderabad (SBH) State Bank of Indore (SBI) State Bank of Mysore (SBM) State Bank of Patiala (SBP) State Bank of Saurashtra (SBS) State Bank of Travancore (SBT) Foreign Subsidiaries: • • • State bank of India International (Mauritius) Ltd.

Non.banking Subsidiaries. Agriculture. • • • • • 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. Activities: State Bank of India administrative structure is well equipped to oversee the large network of branches in India and abroad. International. 20 . The main activities of are into • • • • • • • Personal Banking. The State Bank of India 14 Local Head Offices and 57 Zonal Offices are located at important cities spread throughout the country. The Corporate Accounts Group is a Strategic Business Unit of the Bank set up exclusively to fulfill the specialized banking needs of top corporate in the country. State Bank of India has 52 foreign offices in 34 countries across the globe. NRI Services. SME. Ltd.• INMB Bank Ltd. Domestic Treasury. Corporate. Lagos. (SBICPSL) Joint ventures: • SBI Life Insurance Company Ltd (SBI LIFE).

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Performance: SBI Bank India had Total Income of Rs 68376. E-Rail. P.38 crore or the financial year 2006 -07. Bhatt. Chairman. RBIEFT.83 crore for the financial year 2006 -07. State Bank of India has posted Net Income to the tune of Rs 6364. Gift Cheques. Broking Services Revised Service Charge. SBI Vishwa Yatra Foreign Travel Card. ATM Services. Shri O. Internet Banking. State Bank of India has Colleges/Institutes/Training Centers that are the seats of learning and research and development. MICR Codes. It caters not only to the employees of State Bank of India but also other banks/establishments in India and abroad. 22 . Organization: State Bank of India is headed by Mr. E-Pay. Moreover.State Bank of India offers the following services to its customers • • • • • • • • • • • • • Domestic Treasury. Foreign Inward Remittances. Safe Deposit Lockers.

The Bank has a network of about 1. ICICI's shareholding in ICICI Bank was reduced to 46% through a public offering of shares in India in fiscal 1998.42 billion for the half year ended September 30. the Government of India and representatives of Indian industry. China. The principal objective was to create a development financial institution for providing medium-term and long-term project financing to Indian businesses. venture capital and asset management. life and nonlife insurance.70 billion (US$ 82 billion) at September 30. ICICI Bank's acquisition of Bank of Madura Limited in an allstock amalgamation in fiscal 2001.530 ATMs in India and presence in 18 countries. Qatar and Dubai International Finance Centre and representative offices in United Arab Emirates. Singapore. The Bank currently has subsidiaries in the United Kingdom. History: ICICI Bank was originally promoted in 1994 by ICICI Limited. 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).400 branches and 4. 2008 and profit after tax Rs. 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.849. and secondary market sales by ICICI to institutional investors in fiscal 2001 and fiscal 2002. In the 1990s. an Indian financial institution. 17. Malaysia and Indonesia. Russia and Canada. 2008. Bangladesh. Sri Lanka.Company Profile of ICICI: ICICI Bank is India's second-largest bank with total assets of Rs. and was its wholly-owned subsidiary. branches in United States. an equity offering in the form of ADRs listed on the NYSE in fiscal 2000. Hong Kong. Our UK subsidiary has established branches in Belgium and Germany. 3. both directly and through a number of subsidiaries and affiliates 23 . South Africa. Thailand. ICICI was formed in 1955 at the initiative of the World Bank. 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. Bahrain.

Bank has total assets of about USD 100 billion (at the end of March 2008). by the High Court of Gujarat at Ahmadabad in March 2002. the ICICI group's financing and banking operations. The merger was approved by shareholders of ICICI and ICICI Bank in January 2002. the Boards of Directors of ICICI and ICICI Bank approved the merger of ICICI and two of its wholly-owned retail finance subsidiaries. and 24 million customers (at the end of July 2007). Consequent to the merger. In October 2001. In 1999. higher market share in various business segments. After consideration of various corporate structuring alternatives in the context of the emerging competitive scenario in the Indian banking industry.485 ATMs (at the end of September 2008). a network of over 1. ICICI Bank (BSE: ICICI) (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. particularly fee-based services. ICICI Bank has formulated a Code of Business Conduct and Ethics for its directors and employees. both wholesale and retail. ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers 24 . and access to the vast talent pool of ICICI and its subsidiaries. greater opportunities for earning fee-based income and the ability to participate in the payments system and provide transaction-banking services. 22 regional offices and 49 regional processing centres. and by the High Court of Judicature at Mumbai and the Reserve Bank of India in April 2002. entry into new business segments. The merger would enhance value for ICICI Bank shareholders through a large capital base and scale of operations. The merger would enhance value for ICICI shareholders through the merged entity's access to low-cost deposits. and would create the optimal legal structure for the ICICI group's universal banking strategy. have been integrated in a single entity. seamless access to ICICI's strong corporate relationships built up over five decades.like ICICI Bank. ICICI Personal Financial Services Limited and ICICI Capital Services Limited. 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. about 4. and the move towards universal banking.399 branches. with ICICI Bank. ICICI become the first Indian company and the first bank or financial institution from non-Japan Asia to be listed on the NYSE.

Indonesia. China. South Africa. Backbay Reclamation. ICICI Bank has got its equity shares listed on the stock exchanges at Kolkata and Vadodara. branches and representatives offices in 18 countries.A. life and non-life insurance.29% increase in total income to Rs. inaugurated.) ICICI Bank is also the largest issuer of credit cards in India. venture capital and asset management. and representative offices in Bangladesh.Mehta appointed the second Chairman of ICICI Ltd.L. ICICI Bank now has wholly-owned subsidiaries. 1955: The Industrial Credit and Investment Corporation of India Limited (ICICI) was incorporated at the initiative of World Bank. branches in Belgium. of 3. an advisory branch in Dubai.G. Overseas.21 crore on a 1. with the objective of creating a development financial institution for providing medium-term and long-term project financing to Indian businesses.Ramaswami Mudaliar is elected as the first Chairman of ICICI Limited. 1956: ICICI declared its first dividend. ICICI reported a 1.5%. 1961: The first West German loan of DM 5 million from Kredianstalt obtained.014. including an offshore unit in Mumbai. ICICI was also among the first Indian companies to raise funds from international markets. The Bank is expanding in overseas markets and has the largest international balance sheet among Indian banks. 9. Thailand.15% rise in net profit to Rs. Russia and the UK. the Government of India and representatives of Indian industry. [1] . This includes wholly owned subsidiaries in Canada. Mr.31 crore in Q2 September 2008 over Q2 September 2007. the Bank is targeting the NRI (Non-Resident Indian) population in particular. 1960: ICICI building at 163. 25 . Hong Kong and Sri Lanka.through a variety of delivery channels and specialised subsidiaries and affiliates in the areas of investment banking. ICICI emerges as the major source of foreign currency loans to Indian industry. (These data are dynamic. offshore banking units in Bahrain and Singapore. and its ADRs on the New York Stock Exchange (NYSE). the United Arab Emirates and USA.712. Mumbai and the National Stock Exchange of India Limited. 1. 1958: Mr. Besides funding from World Bank and other multi-lateral agencies. Malaysia.

Nadkarni appointed the sixth Chairman of ICICI.6 crore. 1993: ICICI Securities and Finance Company Limited in joint venture with J.1967: ICICI made its first debenture issue for Rs. Morgan set up.India's first venture capital company. Mr. S. N. 1984: Mr. James Raj appointed the fourth Chairman of ICICI. Parekh appointed the third Chairman of ICICI. 1978: Mr. which was oversubscribed. 1988: Promoted TDICI .Vaghul appointed the seventh Chairman and Managing Director of ICICI. India's first professional credit rating agency. 1985: Mr. The Corporation made a public issue of Swiss Franc 75 million in Switzerland. ICICI commences leasing business. 1994: ICICI Bank set up. 1972: ICICI becomes the second entity in India to set up merchant banking services. ICICI Asset Management Company set up.Siddharth Mehta appointed the fifth Chairman of ICICI. the first loan by CDC for financing projects in India. the first public issue by any Indian entity in the Swiss Capital Market. 1982: ICICI became the first ever Indian borrower to raise European Currency Units. 1987: ICICI signed a loan agreement for Sterling Pound 10 million with Commonwealth Development Corporation (CDC). H. 1969: The first two regional offices set up in Calcutta and Madras. P. T. 1977: ICICI sponsored the formation of Housing Development Finance Corporation and manages its first equity public issue. 1979: Mr. along with UTI. 1986: ICICI became the first Indian institution to receive ADB Loans. ICICI. set up Credit Rating Information Services of India Limited. ICICI promotes Shipping Credit and Investment Company of India Limited. 26 .

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. ICICI becomes the first Indian company to get listed on the NYSE through an issue of American Depositary Shares. 1998: A new logo symbolizing the common corporate identity for the ICICI Group was introduced.V. "E-Lobby". ICICI Bank announces merger with Bank of Madura." ICICI Ltd. ICICI assigned higher than "Sovereign" rating by Moody’s. 27 . ICICI Bank launched Private Banking. 2000 : ICICI Bank became the first commercial bank from India to get its stock listed on the NYSE. ICICI announced takeover of Anagram Finance. 2001: The Boards of ICICI Ltd and ICICI Bank approved the merger of ICICI Ltd. is inaugurated in Pune. SCICI merged with ICICI Ltd. a self-service banking centre and a first of its kind in India. 1999 : ICICI launched retail finance . ICICI Bank launched India’s first CDO (Collateralised Debt Obligation) Fund named Indian Corporate Collateralised Debt Obligation Fund (ICCDO Fund). announced the takeover of ITC Classic Finance. 2002: ICICI Ltd merged with ICICI Bank Ltd to create India’s second-largest bank in terms of assets. The name "The Industrial Credit and Investment Corporation of India Ltd" changed to "ICICI Ltd. K. Mr. home loans and loans for consumer durables. with ICICI Bank.car loans.1996: ICICI Ltd became the first company in the Indian financial sector to raise GDR.

2003: The first Integrated Currency Management Centre launched in Pune. launched in Mumbai. Temasek Holdings acquired 5. the first-ever permanent aggregation and display of housing projects in the county. ATM-on-Wheels. India’s first multi-branded credit card with HPCL and Airtel launched. ICICI Bank and CNBC TV 18 announced India’s first ever awards recognizing the achievements of SMEs. ICICI Bank’s representative office inaugurated in Dubai. ICICI Bank opened its 500th branch in India.100-seat Call Centre for Customer Care by phone and e-mail was set up in Hyderabad. Mobile banking service in India launched in association with Reliance Infocomm. a pioneering initiative to encourage the contribution of Small and Medium Enterprises to the growth of the Indian economy. 2004: Max Money. ICICI Bank Home Shoppe. launched in Pune. ICICI Bank became the market leader in retail credit in India. low-cost ATMs were launched in rural India. Mumbai. introduced. ICICI Bank announced the setting up of its first-ever offshore branch in Singapore.A 1. 28 . Representative office set up in China. ICICI Bank’s UK subsidiary launched.2% stake in ICICI Bank. ICICI Bank introduced partnership model wherein ICICI Bank would forge an alliance with existing micro finance institutions (MFIs). India’s first ever "Visa Mini Credit Card". The MFI would undertake the promotional role of identifying. The first offshore banking unit (OBU) at SEEPZ Special Economic Zone. Kisan Loan Card and innovative. training and promoting the micro-finance clients and ICICI Bank would finance the clients directly on the recommendation of the MFI. a credit card 43% smaller in dimensions was launched. was launched. India’s first mobile ATM. a home loan product that offers the dual benefit of higher eligibility and affordability to a customer. A subsidiary of ICICI Bank was set up in Canada.

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. Financial counseling centre Disha launched. Andhra Pradesh. ICICI Bank became the first private entity in India to offer a discount to retail investors for its follow-up offer.m. Indonesia and Malaysia. Hardoi. from Monday to Saturday. A lowcost solution. Acquired IvestitsionnoKreditny Bank of Russia. 2005: First rural branch and ATM launched in Uttar Pradesh at Delpandarwa. Bhoomi puja conducted for a regional hub in Hyderabad. Private Banking Masters 2005. this became an effective delivery option for ICICI Bank’s micro-finance institution partners. This event is the largest domestic invitation amateur golf event conducted in India. Becomes the first Indian company to make a simultaneous equity offering of $1. ICICI Bank became the largest bank in India in terms of its market capitalization. the United States and Japan. ICICI Bank and Visa jointly launched mChq – a revolutionary credit card on the mobile phone. 2006: ICICI Bank became the first Indian bank to issue hybrid Tier-1 perpetual debt in the international markets.ICICI Bank introduced 8 to 8 Banking wherein all the branches of the Bank would remain open from 8a. to 8 p. financial planning and debt management services.‘NRI smart save Deposits’ – a unique fixed deposit scheme for nonresident Indians. ICICI Bank introduced the concept of floating rate for home loans in India. 29 . Disha provides free credit counseling. "Free for Life" credit cards launched wherein annual fees of all ICICI Bank Credit Cards were waived off.m. a nationwide Golf tournament for high networth clients of the Private Banking division launched. ICICI Bank subsidiary set up in Russia. Representative offices opened in Thailand.8 billion in India. Introduced a new product .

ICICI Bank raised Rs 20. ICICI Bank became the first private bank in India to offer both floating and fixed rate on car loans. commercial vehicles loans. The foundation stone for a regional hub in Gandhinagar. Launched Bank@Home services for all savings and current account customers residing in India ICICI Bank Eurasia LLC inaugurated its first branch at St Petersburg. Launched India’s first ever jewellery card in association with jewellery major Gitanjali Group. ICICI Bank introduced SME Toolkit. ICICI Bank signed a multi-tranche dual currency US$ 1.000 crore (approx $5 billion) from domestic and international markets through a follow-on public offer.2007: ICICI Bank makes a USD 2 billion three-tranche international bond offering. 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. Gujarat was laid. In a first-of-its-kind. a breakthrough innovation in banking where practically all Internet banking transactions can now be done easily on the mobile phone. finance and grow their business. to help small and medium enterprises start. Russia. construction equipment loans and professional equipment loans. ICICI Bank became the first bank in India to launch a premium credit card -.5 billion syndication loan agreement in Singapore. an online resource centre.The Visa Signature Credit Card. Sangli Bank was amalgamated with ICICI Bank. nation wide initiative to attract bright graduate students to pursue a careers in banking. ICICI Bank launched the "Probationary Officer Programme". opens its first branch in Frankfurt ICICI Bank launched iMobile. which becomes the largest bond offering by an Indian bank. 30 . launches its first branch in New York ICICI Bank enters Germany.

which will allow viewers to see information about the Bank's products and services and contact details on their DISH TV screens. 48.ICICI Bank concluded India's largest ever securitization transaction of a pool of retail loan assets aggregating to Rs.96 billion (equivalent of USD 1.21 billion) in a multitranche issue backed by four different asset categories. ICICI Bank launches ICICIACTIVE-Banking Interactive Service . designed to earn cardholders accelerated reward points with every British Airways flight or by spending on everyday purchases Personal Banking: • • • • • • • Deposits Loans Cards Investments Insurance Demat services Wealth management NRI Banking:       Money Transfer Bank accounts Investments Property Solutions Insurance Loans 31 .along with DISH TV. It is also the largest deal in Asia (ex-Japan) in 2008 till date and the second largest deal in Asia (ex-Japan and Australia) since the beginning of 2007. ICICI Bank and British Airways launch a co-branded credit card.

has been used to identify 32 . Factor Analysis. In this context. Keeping these in mind.Business Banking:  Corporate net banking  Cash Management  Trade services  FXonline  SME services  Online taxes  Custodial services 1. which is the most appropriate multivariate technique.3 Research objective:  To study whether the customers are satisfied with their services among ICICI bank and SBI bank  To know about the Customer preferences among ICICI and SBI bank  To give Suggestions to improve the services 1. New private sector banks have brought the necessary competition into the industry and spearheaded the changes towards higher utilization of technology.4 Review of literature: The banking sector in India has made remarkable progress since the economic reforms in 1991. Customers are now becoming increasingly conscious of their rights and are demanding more than ever before. prioritization of preferences and close monitoring of customer satisfaction have become essential for banks. improved customer service and innovative products. For this purpose. 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. 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.

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.

1.5 Key Words: Bank:
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.

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 menber branch offices.

33

Atm:
An automated teller machine (ATM) is a computerized telecommunications device that provides the customers of a financial institution with access to financial transactions in a public space without the need for a human clerk or bank teller. On most modern ATMs, the customer is identified by inserting a plastic ATM card with a magnetic stripe or a plastic smartcard with a chip, that contains a unique card number and some security information, such as an expiration date or CVC (CVV). Security is provided by the customer entering a personal identification number (PIN). Using an ATM, customers can access their bank accounts in order to make cash withdrawals (or credit card cash advances) and check their account balances as well as purchasing mobile cell phone prepaid credit. ATMs are known by various other names including automated banking machine, money machine, bank machine, cash machine, hole-in-the-wall, cashpoint, Bancomat (in various countries in Europe and Russia), Multibanco (after a registered trade mark, in Portugal), and Any Time Money (in India).

34

RESEARCH METHODOLOGY

35

2.1 Sampling design: Target population:
• The target population in this research refers to the bank customers who are having an account in SBI bank and ICICI bank due to the convenience in collecting the data. The respondents can be any gender, any income level, any occupation and any education level.

Sampling unit
• The sampling units are customers of ICICI bank and SBI bank.

Sampling method
 For this research we use non-probability sampling. Zikmund (1997) stated that in nonprobability sampling, the probability of any particular member of the population being chosen is unknown. The element in the population does not have any probability attached to their being chosen as sample subjects. Snow ball sampling will be applied in this research. Snow ball sampling is used to collect the data from the customers. Snow ball sampling refers to the procedure that involves the selection of additional respondents based on referrals of initial respondents.

Sample size
 Ghauri (2002) stated that sample size depend on the desired precision from the estimate. Precision is the size of the estimating interval when the problem is one of estimating a population parameter. This research selects 60 respondents as the sample size due to limited of time by asking them that they are having an account in SBI bank and ICICI bank due to the convenience in collecting the data. The respondents can be any gender, any income level, any occupation and any education level.

36

Sampling plan:
 The researcher is going to collect the data from the ATMS and also by visiting the bank.

2.2 Pilot Study:
A pilot study can refer to many types of experiments, but generally the goal of study is to replicate the full scale experiment, but only on a smaller scale. A pilot is often used to test the design of the full-scale experiment. The design can then be adjusted in time. This can turn out to be valuable: should anything be missing in the pilot, it can be added to the experiment and chances are that the full-scale (and more expensive) experiment will not have to be re-done.

Validity:
The ability of a scale or a measuring instrument to measure what it is intended to measure can be termed as the validity of the measurement. Validity can be measured through several methods like face validity, content validity, criterion – related validity and construct validity. For this comparative study the researcher has taken the face validity.

Face validity:
Face validity refers to the collective agreement of the experts and researchers on the validity of the measurement scale. The researcher has gave the questionnaire to the experts in banking field.

Reliability:
In reliability the researcher has adopted the alpha method. The reliability for the SBI bank ATM service is .630.It shows that the question regarding to SBI ATM service is reliable. And for the internet banking service is .767. And for the mobile banking service is .896. And for the core banking system is .902. If the reliability result is .6 or above .6 the data is reliable. And for this study the data is reliable because all the service are above .6. 37

2.3 Research methodology: Sources of data: • • The data is basically primary in nature It was obtained from the customers Data Collection Method:  Our communication approach was basically structured questioning.  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. The data will be tabulated and analyzed. 38 . 2.4 Limitations of the Study:  The study is limited to a particular branch of SBI and ICICI bank. that is personal interview with the aid of printed questionnaires. Data Analysis: Appropriate statistical analysis will be adopted.

DATA ANALYSIS &INTERPERTATION 39 .

And 16.1 16.1 40 .8% respondents are belonging to the category of above 55yrs.1 25. The respondent’s responses for the questions have been interpreted and a finding has been made based on the respondents responses.8 100 Interpretation: From the above table 38.7% respondents are belonging to the age category of 25yrs-35yrs. Graph: 3.1% respondents are belonging to the category of 36yrs-45yrs and 46yrs-55yrs.Data Analysis and Interpretation: The following information contains the data interpretation of the questionnaires. Frequency table for the demographic details of the SBI respondent’s Table 3.1 AGE OF THE RESPONDENTS Frequency 25YRS-35YRS 36YRS-45YRS 46YRS-55YRS ABOVE 55YRS Total 12 5 5 8 30 Percent 38. And 25.7 16.

Table 3.2 41 .

4 48.4% respondents are belonging to the category of female.GENDER OF THE RESPONDENTS Frequency FEMALE MALE Total 15 15 30 Percent 48.4 100 Interpretation: From the above table 48. 42 . And the remaining 48.4% respondents are belonging to the category of male.

Graph: 3.2 Table 3.3 43 .

EDUCATIONAL OUALIFICATION OF THE RESPONDENTS Frequency SCHOOL UG PG PROFESSIONAL COURSE M. Graph 3.0% of respondents are belonging to the category of UG.2 100 Interpretation: From the above table 9. And 45.0 45. And 3.7 29.2 9.7 3.3 44 .7% of respondents are belonging to the category of school and professional course.2% of respondents are belonging to the category of PG. And 29.2% of respondents are belonging to the category of M.phil/phd Total 3 9 14 3 1 30 Percent 9.phil/phd.

Table 3.4 45 .

0 100 Interpretation: From the above table 80.OCCUPATION OF THE RESPONDENTS Frequency SALARIED PERSON PROFESSIONALS SUPERVISOR MANAGERIAL Total 25 1 1 3 30 Percent 80. And 10% of respondents are belonging to the category of managerial. Graph 3.4 46 .6 3.2% of respondents are falling under the category of professionals and supervisor.6% of respondents are falling under the category of salaried person. And 3.2 3.2 10.

5 47 .Table 3.

8 12.45. 000.000-Rs. 001-Rs.8 25.INCOME LEVEL OF THE RESPONDENTS Frequency Rs.5 48 .15.25. 000.001-Rs.5. 000-Rs.8% of respondents are falling under the income range between Rs.15.8% are falling under the income range between Rs. 000.25. And 12.000 Rs. 000.25.45.15.001-Rs.9 3. And 25.25. And 3. 001-Rs.5.000 Rs.000 Total 17 8 4 1 30 Percent 54.2 100 Interpretation: From the above table 54.9% of respondents are falling under the income range between Rs.35.2% of respondents are falling under the income range between Above Rs.35.15. Graph 3.000 Above Rs.

Table 3.6 49 .

7 3.6 50 . Graph 3.9% of respondents are saying that the reason to choose SBI is they are provided more atm facility.7% of respondents are saying that the reason to choose SBI is Transaction costs. And 3.2 12.2% of respondents are saying that the reason to choose SBI is they are providing efficient customer service.2% of respondents are saying that the reason to choose SBI is Technology.REASON TO CHOOSE THE SERVICE EFFICIENT CUSTOMER SERVICE TIME SAVING TRANSCATION COSTS TECHNOLOGY MORE ATMS Total Frequency 14 8 3 1 4 30 Percent 45.2 25.9 100 Interpretation: From the above table 45. And 12.8 9.8% of respondents are saying that the reason to choose SBI is they are reducing our waiting time. And 9. And 25.

7 51 .Table 3.

Graph 3.7 16. And 9.7 52 . And 16.3% of respondents prefer the ATM service.1 100 Interpretation: From the above table 61.7% of respondents are preferred the internet banking and mobile banking.TYPE OF SERVICE PREFER THE MOST Frequency ATM SERVICE INTERNET BANKING MOBILE BANKING CORE BANKING SYSTEM Total 19 3 3 5 30 Percent 61.7 9.1% of respondents prefer the core banking system.3 9.

Frequency table for the demographic details of the ICICI respondent’s 53 .

7% of respondents are falling under the age group of 25yrs-35yrs. Graph 3.8 54 .3 100 Interpretation: From the above table 96.7 3.3% of respondents are falling under the group of above 55yrs.Table 3. And 3.8 AGE OF THE ICICI RESPONDENTS Frequency 25 YRS-35 YRS ABOVE 55 YRS Total 29 1 30 Percent 96.

Table 3.9 55 .

Graph 3.GENDER OF THE ICICI RESPONDENTS Frequency FEMALE MALE Total 12 18 30 Percent 40 60 100 Interpretation: From the above table 40% of respondents are belonging to the female category. And 60% of respondents are belonging to the male category.9 56 .

10 57 .Table 3.

7 70.D.3 100 Interpretation: From the above table 6. Graph: 58 .D Total 2 21 6 1 30 Percent 6. And 70% of respondents are belonging to the category of PG.EDUCATIONAL LEVEL OF ICICI RESPONDENTS Frequency UG PG PROFESSIONALS M.0 3.0 20.Phil/Ph.3% of respondents are belonging to the category of M. And 3.7% of respondents are belonging to the category of UG.Phil/Ph. And 20% of respondents are belonging to the category of professionals.

11 59 .Table 3.

And 3. Graph 3.3% of respondents are belonging to the category of managerial.OCCUPATION OF THE ICICI RESPONDENTS Frequency SALARIED PERSON BUSINESS MAN PROFESSIONALS MANAGERIAL Total 23 3 3 1 30 Percent 76.0 3.11 60 .3 100 Interpretation: From the above table 76.0 10.7 10.7% of respondents belong to the category of salaried person. And 10% of respondents are belonging to the category of businessman and professionals.

12 INCOME LEVEL OF THE ICICI RESPONDENTS 61 .Table 3.

15.7 3.000 Rs.001-Rs. And 3.000-Rs.15.35. 000. 000. 000.3 6. 000.3% of respondents are falling under the income level of Rs.45.000 Total Frequency 16 2 9 2 1 30 Percent 53. Graph 3. 001-Rs.45.Rs.000 Rs.000 Above Rs.12 62 .45.5.0 6. And 6. And 30% of respondents are falling under the income level of Rs. 000-Rs.001-Rs. 000 and Rs.25.35.35.35.15.000 Rs. 001-Rs.25.3% of respondents are falling under the income level of above Rs.3 100 Interpretation: From the above table 53.25.15. 001-Rs.001-Rs.5.7 30.45.7% of respondents are falling under the income level of Rs.25.

13 REASON FOR CHOOSING ICICI SERVICES 63 .Table 3.

7 26.7% of respondents are saying that the reason to choose ICICI is Transaction costs.7% of respondents are saying that the reason to choose ICICI is they are providing efficient customer service and efficient complaint handling. And 13. And 6. technology and reliable.3% of respondents are saying that the reason to choose ICICI is they are reducing our waiting time.3 13.7 13.13 64 . Graph 3.3 100 Interpretation: From the above table 26.7 13.EFFICIENT CUSTOMER SERVICE EFFICIENT COMPLAINTS HANDLING TIME SAVING TRANSACTION COSTS TECHNOLOGY RELIABLE Total Frequency 8 8 4 2 4 4 30 Percent 26.3 6.

Table 3.14 TYPE OF SERVICES PREFER THE MOST 65 .

And 30% of respondents are preferred the internet banking.3% of respondents prefer the core banking system and mobile banking.Frequency ATM SERVICE INTERNET BANKING MOBILE BANKING CORE BANKING SYSTEM Total 13 9 4 4 30 Percent 43.0 13.3% of respondents prefer the ATM service.3 13. Graph 3.3 100 Interpretation: From the above table 43.14 66 .3 30. And 13.

For the cross tabulation and chi.Cross Tabulation and chi.Square Test: The following table below is cross tabs and chi.square the researcher has taken only education 67 .square test for the demographic details for the SBI respondents.

7% .0% 3.3% .3% TIME SAVING TRANSCATION COSTS TECHNOLOGY MORE ATMS Total 3.7% .0% .15 EDUCATIONAL OUALIFICATION OF THE RESPONDENTS * REASON TO CHOOSE THE SERVICE Cross tabulation REASON TO CHOOSE THE SERVICE EFFICIENT CUSTOMER SERVICE SCHOOL UG PG PROFESSIONAL COURSE M.3% 46.3% 10% 30% 46.7% 13.0% . And the other one is occupation and type of service they prefer the most.3% 10% 13.and reason to the service.3% . Table 3.0% 3.3% 100.3% 13.phil/phd Total 6.0% 68 .0% .0% 3.0% .3% 10% .0% 13.0% .0% 3.7% 10% 3.3% 6.3% .0% 10.0% 26.7% .0% 10% 3.

Interpretation: From the above table 6.7% of respondents are falling under the education level of school has chosen the efficient customer service in SBI. And 69 .

Graph 3.15 70 .

The null hypothesis is rejected and the alternate hypothesis is accepted.924.924 Interpretation: From the above table the calculated chi-square statistic in this case is . So there is a significant relationship between the educational qualification of the respondents and the reason to choose the service. (2sided) .15 Chi-Square Test -I Hypothesis: Ho: There is no significant relationship between the educational qualification of the respondents and the reason to choose the service. Sig.Table 3.739 df 16 Asymp. Value Pearson ChiSquare 8. Ha: There is a significant relationship between the educational qualification of the respondents and the reason to choose the service.05. Since the calculated chi-square is above 0. 71 .

16 OCCUPATION OF THE RESPONDENTS * TYPE OF SERVICE PREFER THE MOST Cross tabulation TYPE OF SERVICE PREFER THE MOST ATM SERVICE SALARIED PERSON 53.0% .0% .0% 10% Total 63.3% .3% .0% 3.7% 20% 100% Interpretation: 72 .3% .7% CORE BANKING SYSTEM 20% Total 83.0% 3.0% 3.0% .0% .3% SUPERVISOR 3.3% MOBILE BANKING 6.3% MANAGERIAL 6.Table 3.3% 10% 6.3% INTERNET BANKING 3.3% PROFESSIONALS .7% 3.

Graph 3.16: 73 .

(2sided) . Sig.II Hypothesis: Ho: There is no significant relationship between the occupation of the respondents and the type of service they prefer the most.05.154. Since the calculated chi-square is below 0. The null hypothesis is accepted and the alternate hypothesis is rejected. 74 . Value Pearson ChiSquare 13.16 Chi-Square Test .154 Interpretation: From the above table the calculated chi-square statistic in this case is . So there is no significant relationship between the occupation of the respondents and the type of service they prefer the most.186 df 9 Asymp. Ha: There is no significant relationship between the occupation of the respondents and the type of service they prefer the most.Table 3.

0% 10% 3.7% .3% .7% .0% 6.0% 26.3% 26.0% 13.0% 13. And the other one is occupation and type of service they prefer the most.0% 13.3% 3.7% .square test for the demographic details for the ICICI respondents.The following table below is cross tabs and chi.0% 6.17 EDUCATIONAL LEVEL OF ICICI RESPONDENTS * REASON FOR CHOOSING ICICI SERVICES Cross tabulation REASON FOR CHOOSING ICICI SERVICES EFFICIENT CUSTOMER SERVICE EFFICIENT COMPLAINTS HANDLING TIME SAVING TRANSACTION COSTS TECHNOLOGY RELIABLE Total UG PG PROFESSIONAL COURSE M.square the researcher has taken only education and reason to the service.7% .0% 13.0% .35 100% Interpretation: 75 .7% .0% 13.3% .0% . For the cross tabulation and chi.0% 26.0% .7% 70% 20% 3.3% 10% . Table 3.0% 6.PHIL/PHD TOTAL .3% 6.3% .7% 6.7% .

17 76 .Graph 3.

05.000 Interpretation: From the above table the calculated chi-square statistic in this case is . Sig.268 df 15 Asymp. Value Pearson ChiSquare 40. So there is no significant relationship between the educational qualification of the respondents and the reason for choosing the service. (2sided) . 77 . Ha: There is a significant relationship between the educational qualification and the reason for choosing the service..000.17 Chi-Square Test .Table 3. The null hypothesis is accepted and the alternate hypothesis is rejected.I Hypothesis: Ho: There is no significant relationship between the educational qualification and the reason for choosing the service. Since the calculated chi-square is below 0.

3% Total 43.0% 3.0% 3.3% 3.7% INTERNET BANKING 20% MOBILE BANKING 13.7% BUSINESS MAN PROFESSIONALS 3.18 OCCUPATION OF THE ICICI RESPONDENTS * TYPE OF SERVICES PREFER THE MOST Cross tabulation TYPE OF SERVICE PREFER THE MOST ATM SERVICE SALARIED PERSON 36.3% CORE BANKING SYSTEM 6.3% .3% .0% .3% 3.7% Total 76.3% 13.0% 3.3% 10% 10% MANAGERIAL .3% 3.3% 100% 78 .0% .3% 3.Table 3.3% 30% 13.

18 Table 3.Interpretation: Graph 3.18 79 .

II Hypothesis: Ho: There is no significant relationship between the occupation of the respondents and the type of service they prefer the most. Value Pearson ChiSquare 5.Chi-Square Test . Since the calculated chi-square is above 0.05. Sig.743.974 df 9 Asymp. Ha: There is a significant relationship between the occupation of the respondents and the type of service they prefer the most.743 Interpretation: From the above table the calculated chi-square statistic in this case is . 80 . (2sided) . The null hypothesis is rejected and the alternate hypothesis is accepted So there is a significant relationship between the occupation of the respondents and the type of service they prefer the most.

FINDINGS RECOMMENDATIONS AND CONCLUSION Findings: 81 .

   The age group of 25yrs .15.  And the income level of the respondents who are having an account in SBI bank falling under the income level of Rs.000. 5.  The age group of 25yrs – 35yrs respondents mostly is having an account in SBI bank. request for cheque book in ATM.  The both gender are equally having an account in SBI bank.  Sum Of the respondents to choose the ICICI bank is because the bank is more reliable to the customers.35yrs respondents mostly is having an account in ICICI bank. The few are deposit of cash in ATM.  And many of the respondents are not aware of the many services rendered by the SBI bank. The male gender is mostly having an account in ICICI bank.Rs. end of the day balance in mobile.000 .  And 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. etc. And many of the respondents are not aware of the many services rendered by the ICICI bank. request for cheque book in ATM.000 – Rs. Recommendation: 82 . etc. Sum Of the respondents to choose the SBI bank is because the bank is proving more ATM facility to the customers. 5.  And the income level of the respondents who are having an account in ICICI bank falling under the income level of Rs.15. end of the day balance in mobile. The few are deposit of cash in ATM.000.  And many of the respondents are saying the reason to choose the services of the SBI bank is because they are good in efficient customer service.

Conclusion: 83 .  The bank can also send a post to there customers by informing there services and how to proceed with that and all details they can mention it in the post. Since many of the respondents are not aware of there key services.  The bank can post a list of services that they are rendered to the customers inside the bank Premises.  The SBI bank can concentrate on customer complaints handling.  They can concentrate more on the respondents are falling under the age group 25yrs – 35yrs.  And they can post demo of all these services in their bank website. The bank has to take some initiatives.  The ICICI bank can concentrate on the female gender.

84 .• • • Since both the banks are competing equally with each other. The ICICI bank is little bit below the line in concentrating on female customers when to SBI bank. But SBI bank is little bit below the line in customer complaints handling when compared to ICICI bank.

APPENDICS 85 .

ebscohostsearch.Gupta Statistics Book.com 86 .iupindia. Websites: www.ezine@rticles.BIBLIOGRAPHY:  Research Methodology .org www.googlesearch.emeraldinsight.P.com www.scribd.com www.ICFAI Publication  S.com www.com www.

What is the reason to choose the services of the bank? a) Efficient customer service □ b) efficient complaints handling □ c) Time saving □ d) transaction costs □ e) technology f) Others _________ pls specify c) □ 46 – 55 yrs d) □ above 55 87 . Occupation: a) House wife □ b) Students □ c) Salaried person □ d) Business man □ e) Professionals □ f) Supervisor □ g) Managerial □ h) pensioner □ 6.5. Educational Qualification: a) Illiterate □ b) School □ c) UG □ d) PG □ e) Professional Course □ f) Others □ 5.25. Gender: a) Male □ b) Female □ 4.35.Questionnaire Personal details 1.25.45. 45. Name: 2.15.35 yrs b) □ 36 yrs . Age: a) □ 25yrs.15.000 d) Rs.000 c) Rs.000 7. Income level: a) Rs.000 e) Above Rs.001-Rs.Rs.45yrs yrs 3.35.001-Rs.000 b) Rs.001.000 – Rs. In which bank do you have an account? a) ICICI bank □ b) SBI bank □ 8.

3= neutral. I am facing problems like insufficient cash in 1 2 3 4 5 ATM. ATM services are useful for me to deposit cash and cheques ATM services are useful for me to request for cheque book ATM services are useful for me to get the enquiry statement of my account. Internet Banking Internet banking helps me to transfer funds from the bank to the personalized transactions Internet banking saves me time for the banking transactions Internet banking helps me in bill payments Internet banking secures the money transactions 88 1 2 3 4 . 5= strongly agree S. 2= disagree. What type of services do you prefer the most? a) ATM service b) Internet Banking c) Mobile Banking d) Core banking system e) Others _____________ pls specify Customer service questionnaire Please use (/) mark to give your responses for the following questions 1=strongly disagree.9.no 1 2 3 4 5 ATM Service I am facing problems in withdrawing cash from ATM. 4= agree.

Mobile banking is useful for me to know the cheque details Mobile banking is useful for me to know the Debit/credit above certain limit in my account.5 1 2 3 4 5 6 7 Internet banking helps in online trading Mobile banking Mobile banking is useful for me to know the end of day account balance. Mobile banking is useful for my bill payments Mobile banking helps me to know about the debit/credit details Mobile banking provides me a support for ticketing. recharging mobiles etc. Mobile banking is useful for me to Stop inward/outward cheques. Core Banking system Core banking system helps me to transfer funds from different branches Core banking system makes me convenient to know about the deposit details Core banking system helps me to protect my personal information Core banking system helps me for the ATM service transactions Core banking system helps me for the internet banking transactions 1 2 3 4 5 89 .

90 .

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