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CHAPTER 6

COMPARISON BETWEEN ICICI BANK AND SBI.

Contents 6.1 SBI v/s ICICI 6.2 Analysis & Interpretation of Services 6.3 Analysis of Performance of ICICI Bank & SBI 6.4 Major Findings 6.5 Testing of Hypothesis

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CHAPTER 6

COMPARISON BETWEEN ICICI BANK AND SBI.

6.1 SBI v/s ICICI

SBI stands for State Bank of India. It is a public sector institution (government owned), with a huge customer base all over India. It has seven associate banks operating under its SBI name. It has over thirteen thousand branches across India and in some selected international countries and a 56,000 ATM network across India. The Standard Bank of India „inherited‟ the Bank of Calcutta, which was founded in 1806, and has been in existence for over two hundred years.

On the other hand, the ICICI is a private sector bank (privately owned), with a relatively smaller clientele base. It is one of the major banks in India (precisely the second largest), but much smaller than the SBI. It has 950 branches, with 3,500 branches across India. The bank has deposits of Rs 1.65 lakh crore compared to SBI‟s Rs 3.8 lakh crore (accumulated in a period of twelve years), racking up a net worth of Rs 22,000 against Rs 27,000 for the State Bank of India. This represents Rs 9 crore business generated by each ICICI employee per year, compared to Rs 3 crore worth of business per employee of the ICICI.

While the State Bank pays 4.7 percent on deposits, and earns less on advances, the ICICI pays 0.7 less (4 percent), while earning more on advances, and thus earns 0.4 percent more on assets than the SBI. This is no surprise, as there‟s seemingly limitless access to funds from the government for the state owned SBI.

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On money transfers from overseas accounts, with the SBI, once a transfer transaction is completed, you will be able to know the exchange rate used, and there are no restrictions on the amounts you can transfer a day. However, the ICICI transfer is somewhat different. After completion of a money transfer transaction, the exchange rate can only be known after five days, and there is a daily limit of $5000 that can be transferred a day. Although the SBI has generally performed well in the past, in recent years, the ICICI has seen very good performance, almost edging out the SBI in every aspect, especially financially. The financial years between 2001-2002 and 2005, and 2006, saw very strong gains for the ICICI bank. Its deposits grew by 200 percent, five times more than the SBI‟s, and while SBI‟s revenue grew by 30 percent and the ICICI bank‟s revenue grew by seven times that percentage. This trend means that ICICI‟s growth will eventually overtake SBI‟s in the future, in terms of deposits. The SBI is a government owned bank (public sector), while ICICI is a privately owned bank (private sector). The SBI is much older (more than 200 years old) and more established than the ICICI, which is less than 25 years old. The SBI does not limit daily international transfer amounts, while the ICICI limits daily transfers to $5000 a day. The SBI bank pays a higher percentage on deposits than the ICICI bank.

6.2 ANALYSIS AND INTERPRETATION OF SERVICES
Case 1 – Sale of Gold during Akshya Tritiya (2012) SBI

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ICICI

We can see here that SBI advertises sale of mutual fund units in their Gold Fund scheme during the festival of Akshaya Tritiya. Investors who have knowledge about the market will know very well that gold as a commodity yields an average 20% YoY and has since never saw a negative rate of return. SBI also had a scheme that offered 1% discount on all denominations of Gold coins except those above 100gms during their campaign. The drawback of advertising like this is, many do not know the benefits of investing in „paper‟ gold. Which means, gold mutual funds or gold exchange traded funds; this form of investment has superior advantages than investing in gold as a physical commodity. ICICI however had decorated all its branches during the festival and even offered a larger discount, 8% on gold coins being purchased online. Many Indians today still choose gold as a physical commodity and it is possible that ICICI had better sales than SBI in comparison to gold coins.

SBI could simply mention the rate of return on its gold mutual funds or offer the advantages of „paper‟ gold over physical gold in its advertisements during Akshaya Tritiya. The advantages of investing in paper gold are not even mentioned on their mutual funds website by means of a flash advertisement.

Case 2 – Branch Service Delivery The below floor design matches the SBI Branch located in V.V. Puram in Bangalore

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thus leading to crowding and frustration among customers at the VV Puram branch. they could have the existing counters perform multiple services rather than only one. This crosses more than 500 daily just for deposits and withdrawals. To improve order among customers at the branch. they have installed a token machine that dispenses small slips of paper that show when the customer gets his turn 140 . Only two counters manage this which is highly inadequate. SBI could reduce the time spent by customers for waiting by simply adding additional counters or better yet in order to save cost.Here is a table that represents the services the below counters offer: Demand Drafts Operations Manager (Queries) Deposits / Withdrawals Deposits / Withdrawals Pass Book Entries Queries Clearing May I Help You SBI has very limited space for the number of customers who transact daily.

The cashier would provide an acknowledgement slip thereafter. SBI could do so much more. There are very little advertisements displayed at the branch regarding the variety of services offered by the bank. opening fixed or recurring deposits. where the customer can simply swipe his debit card and deposit the required cash at the counter. There is one excellent move by SBI to reduce time spent by customers in writing the deposit slips. They have a 32 inch television that displays some of the services it offers but the television is placed at an angle which is not visible for the customers seated in the branch. It is also seen when you Google „SBI Green Channel‟ the results do not display any information from the company website. The poor marketing of this initiative is clearly seen when you visit the branch. corporate and individuals. which happen to be a major revenue source for the bank. It would be more convenient if they had a smart token machine that dispenses tokens for those wanting demand drafts. The SBI Green Channel Counters. These dispense tokens only for deposits or withdrawals. In other words. The seating arrangements are for 15 but only 4 can view the television screen. SBI does not even mention this excellent move on its website. by putting up advertisements on the variety of accounts it offers for businesses. The floor design below is that of the ICICI Bank Branch in Jayanagar 7th Block 141 .to complete the transaction. write the details and verify them in the crowded branch and instead get a token and wait. NRI accounts or more importantly those seeking loans. The benefits of the green channel counters are displayed on small pamphlets on the counter glass walls and the advantages of this are printed in small font text. This is a boon to customers as they need not scavenge for a deposit slip.

The last set mentioned being customers who avail privilege banking services. There are also tokens disbursed for each service. with separate tokens disbursed for non customers. The token system is very well organized. From 3 counters that accept deposits. which means if a customer wants to enquire mutual funds or DEMAT services.Operations Manager (Complaints) New Accounts NRI / Forex Deposits Deposits Deposits May I Help You Fixed Deposits and Others Loans DEMAT. customers and Gold Customers. then all that needs to be done would be to select the customer type and then 142 . ICICI branch employees take up multi tasking during times when there are more customers to cater to. they increase it to 4 or sometimes 5 to ensure waiting times of the customers are reduced. Mutual Funds It is seen that the bank branch is much larger and has more counters to cater to the needs of the customer.

would not get any priority than someone else who has to deposit say Rs. This is not present in SBI. The data for which is unavailable.000/.500/- Case 3-ATM Services SBI Cash Withdrawal Mobile Recharge Fund Transfers Mini Statement Balance Enquiry Donate to temple trusts Donate to relief funds Pay Utility Bills (MTNL and Bescom only) Pay SBI Credit Card Bills Pay SBI Life Insurance premium Pay fees of certain colleges ICICI Cash Withdrawal Mobile Recharge Pay Utility Bills (All) Pay ICICI credit card bills Pay ICICI Prudential Insurance premium Request cheque book Fund Transfers Mini Statement Balance Enquiry SBI ATMs do have more services than what ICICI ATMs offer. If you are a customer wanting to deposit more than Rs. To make it even more easier. However.50.50. the token machine prioritizes deposit values as well.there is a separate option for the same. SBI offers the basic services (highlighted purple) in all the ATMs. Only on their website in a link that shows up when you type “ATM” in the search bar. Poor advertising of its ATM functionality has resulted in lack of awareness among consumers regarding the services available. In fact. 143 . the rest are available only in a select few. 000/. a customer who wants to deposit upwards of Rs.press the button which has the label for the service needed. the SBI website also does not advise any details on what services their ATMs offer. But there is a small glitch in their service delivery and marketing.

ICICI however offers all the services in all of its ATMs. As a customer of SBI. This advertising is irrelevant. suggests “Our ATM is almost a bank branch” indicating customers the improvised convenience offered to them. And the advertising of its services has been clearly seen on all its branches. it makes no difference on the number of ATMs added over the years since the data is irrelevant. SBI keeps advertising on the number of ATMs and cash withdrawals made by consumers over the years in these ATMs. There is even a flash demo on the bank‟ s website that provides details on the services available at its ATMs.The irony is. Their current marketing campaign. Case 4 – Website User Interface SBI 144 .

leasing and export/import credit. These include term loans. SBI merely offers soft benefits of using their service citing leaders in market. We can see here on the SBI website that the text of the links is not boldly displayed and hence does not stand out. To know more about SBI capital one must visit their website. These are 3 source of low volume of revenue. just to name a few. It only mentions that it would be managed by SBI Capital. The home page focuses on 3 areas of banking. the company executive would have very little info when he visits the corporate accounts page. It is also seen that SBI does not 145 . agriculture and NRI. Assuming a start up wishes to bank with SBI. The page also provides details which form traditional services and nothing new. and opens their home page. personal.ICICI Some of the basic principles of running e-commerce would be to have a website that is user friendly and provides adequate info without having to do much of searching. The reason being. It does not mention details of services such as asset management. competitive pricing etc.

ICICI boldly advertises its services on the website giving customers and potential customers vast details of their banking services. In case of corporate accounts which are a major revenue source. It is unfortunate that the flash advertisement has no hyperlink if a customer was interested to know what the vast set of services offered by the bank is. Brand reenforcement of SBI is not needed. Their brand value is familiar to the masses. Since the bank is generations old. ICICI even offers student accounts as well which is gaining popularity among many today. there are vast details of what ICICI offers to those taking up their services. Here is a screenshot of the details: 146 . Emphasis on „Wealth Banking‟ is an excellent move since there are more than 1 million newly rich Indians in this country who form their potential customer base. The only flash advertisement running so far is: The advertisement follows mentioning a vast set of services offered by the bank.showcase any advertisement about its services.

despite additional third party motor pool losses for ICICI General 31.73% Fee income increased by 4.4% increase in consolidated profit after tax from Rs.7% year-on year.3 ANALYSIS OF PERFORMANCE OF ICICI BANK AND SBI 25. 76.74% in Q4-2011 147 . net interest margin at 3. 15.19.5% increase in standalone profit after tax from Rs. full year NIM improved by 9 basis points to 2.6. 14.65 bn in FY2012 (April 2011-March 2012) Net interest income increased by 19.43 bn in FY2012.8% reduction in provisions to Rs. 64. 60.02 bn in Q4-2012 (January-March 2012) Net interest income increased by 23.0% year-on year. 51.0% increase in standalone profit after tax from Rs.52 bn in Q4-2011 (January-March 2011) to Rs.51 bn in FY2011 (April 2010-March 2011) to Rs.83 bn 25.93 bn in FY2011 to Rs.01% compared to 2.5% 30.

0% in Q42012 Net NPA ratio decreased to 0.35.6.1.2. 2012 from 0. 2012.94%) (Table 6.3.3% year-on-year to Rs. 2011 (March 31.62% at March 31.6.6. 2012 CASA ratio at 43.5) 148 . average CASA ratio at 39.537.4. 2011: 0.28 billion at March 31.5% at March 31.6.8% year-on-year increase in non-interest income driven by increased dividends from subsidiaries Increase in provisions on account of restructuring of exposures in Q4-2012 Advances increased by 17.70% at December 31.2.

66. The increase in profit after tax was mainly due to a 19. Net interest income increased by 19.0% in average interest earning assets. 75. 51. reflecting an increase of 9 basis points in net interest margin and an increase of 15. 64. The increase in non-interest income was primarily 149 .8% decrease in provisions and contingencies (excluding provisions for tax).65 billion in fiscal 2012.0% from Rs.8% increase in non-interest income and 30. 107. Non-interest income increased by 12. Profit after tax increased by 25.51 billion in fiscal 2011 to Rs. 12. 90.5% from Rs.48 billion in fiscal 2011 to Rs.02 billion in fiscal 2012.34 billion in fiscal 2012.0% increase in net interest income.During fiscal 2012. ICICI Bank focused on profitable growth by leveraging its rebalanced funding mix and strong capital position to grow our loan portfolio and improving the credit quality of our loan portfolio.8% from Rs.17 billion in fiscal 2011 to Rs.

2.6% from Rs.81 billion at March 31. 2011 to Rs.83 billion in fiscal 2012. 1.7% from Rs. 2011 to Rs. 4.34 billion at March 31. 78. 1. Total deposits increased by 13. 4.239.00 billion at March 31. 2011 to Rs. Total assets increased by 16.19 billion in fiscal 2011 to Rs. Current and savings account (CASA) deposits ratio was 43.163. 2012.13 billion in fiscal 2012.6% from Rs.17 billion in fiscal 2011 to Rs.50 billion in fiscal 2012 primarily due to an increase in employee expenses and other administrative expenses.537. 150 . 67. 0.5% from Rs. 2. 2012. The decrease in provisions and contingencies (excluding provisions for tax) was primarily due to a reduction in provisions for retail nonperforming loans. Fee income increased by 4. 15. 2011 to Rs. 2012 primarily due to an increase in domestic and overseas corporate loans and an increase in the retail loan book. 2.55 billion at March 31. 18.555.3% from Rs. 2012.94 billion at March 31.66 billion at March 31.444. 7. Provisions and contingencies (excluding provisions for tax) decreased by 30.5% at March 31. 64.87 billion in fiscal 2011 to Rs.94% at March 31.02 billion at March 31.062. 2.256.47 billion at March 31. 2012 and the net nonperforming asset ratio decreased from 0. 668.11 billion in fiscal 2011 to Rs. by reversal of MTM loss/realized gain on investments in government of India securities and other fixed income positions and gain on equity/preference investments. 2011. Savings account deposits increased by 13. 2011 to 0. Net non-performing assets decreased by 22. 2012 compared to 45. 66. 24.736.69 billion at March 31.3% from Rs. Term deposits increased by 16.1% at March 31. 22. 2.07 billion in fiscal 2012. in part. offset. 2011 to Rs. 2011 to Rs.46 billion at March 31.6% from Rs.58 billion at March 31. as accretion to retail non-performing loans declined sharply from fiscal 2011. 760. Non-interest expenses increased by 18.9% from Rs. 2012.28 billion at March 31.15 billion in fiscal 2011 to Rs.due to an increase in dividend income from subsidiaries from Rs. Total advances increased by 17. 2012.36 billion in fiscal 2012 and a decrease in loss from treasury-related activities from Rs.8% from Rs. 4.62% at March 31. Loss from treasury-related activities for fiscal 2012 primarily includes realized/MTM provision on security receipts.

265 crores in FY11 to Rs. Net Profit increased from Rs.574 crores in FY12 (24. 2012.11.529 branches and extension counters at March 31. Capital Adequacy Ratio of the Bank increased from 11.25. 2011.86% (Tier I: 9. Our branch network in India increased from 2. 2011 to 2.104 ATMs at March 31.10%YOY growth).98% (Tier I: 7.77%) in Mar 11 to 13.5% and Tier I capital adequacy ratio of 13.291 crores in FY12 (33. The total capital adequacy ratio of ICICI Bank on a standalone basis at March 31.32.79%) in Mar 2012 (188 bps YOY growth).66% YOY growth) Operating Profit increased from Rs.526 crores in FY11 to Rs.707 crores in FY12 (41.752 branches and extension counters at March 31.62%YOY growth).43. 2012 in accordance with RBI guidelines on Basel II was 18.31. 2011 to 9.006 ATMs at March 31. 151 .5% with a Tier I capital adequacy ratio of 12.8.7% compared to a total capital adequacy ratio of 19. We also increased our ATM network from 6.2% at March 31.ICICI Bank continued to expand our branch network in India.336 crores in FY11 to Rs. Net Interest Income increased from Rs. 2012.

6.8.300 crores in FY12 (21.Net Interest Margin (Whole Bank) increased from 3.24.6.81.(Table 6. Dividend of Rs.59.825 crores in FY11 to Rs.18%YOY growth).351 crores in FY12 (9.31%YOY decline).6.35 per share (350%) proposed for the year ended 31st March 12.17% in FY12.85% in FY12 (53 bps YOY growth).7.20. Non Interest Income decreased from Rs.63% in FY11 to 4.6.14.10.32% in FY11 to 3.078 crores in FY12 (35. Interest Income on Resources Operations increased from Rs.11) 152 .235 crores in FY11 to Rs.6.55.15.12%YOY growth).43. Interest paid on deposits increased from Rs. Interest Income on Advances increased from Rs.976 crores in FY11 to Rs.70%YOY growth).9.6.644 crores in FY12 (28. Domestic NIM increased from 3.062 crores in FY11 to Rs.

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Interest income on advances at foreign offices has also grown by 24. Operating Expenses increased by 13.81.521.08 crores in 2011-12.41 crores in 2010-11 to Rs. Dividend The Bank has declared dividend @ Rs. The average yield.97 crores in 2010-11 to Rs.29 crores for 2011-12 as compared to Rs.573.8. The gross interest income from global operations correspondingly rose from Rs.52 crores in 2010-11 registering a growth of 41. Interest income on advances in India registered an increase from Rs.15 crores in 2011-12 due to higher volumes.45 crores during the year registering a growth of 30.Profit The Operating Profit of the Bank for 2011-12 stood at Rs.05% mainly due to higher average resources deployed and increase in average yield.31%.960. While Net Interest Income recorded a growth of 33.1.335.394.309.707.264.62%.30.87%.00 per share (350%) as against @ Rs. Income from resources deployed in treasury operations in India increased by 22. The Bank has posted a Net Profit of Rs. the Other Income declined by 9.77.02% in 2010-11.54 crores as compared to Rs.32.00 per share (300%) in the previous year.05% in 2011-12.27% attributable to higher staff cost and other expenses.56% in 2010-11 to 11.51% in 154 .31.35.11.291.36 crores to Rs. The average yield on advances in India increased from 9.56.526.10%. Net Interest Income The Net Interest Income of the Bank registered a growth of 33.57 crores in 2010-11 registering a growth of 24.06.43. This was due to higher growth in the advances and investment portfolios.66%. has increased to 7.10% from Rs.25. which was 7.99%.

23 crores as at the end of March 2012.61% from Rs. have registered an increase of 13.35.73 crores in the previous year) by way of dividends from Associate Banks / subsidiaries and joint ventures in India and abroad.767.600. postage.15.27% over the previous year.14.57 crores to Rs.867.13.15.61 crores as at the end of March 2012.7. the Bank received an income of Rs. Interest expenses on deposits in India during 2011-12 recorded an increase of 29.89 crores. During the year.2011-12.45 crores in 2011-12 as against Rs.48.59 crores in 2010-11 registering a decline of 9.2. telegrams & telephones.12.56. comprising both staff cost and other operating expenses.827.59% in the Staff Cost from Rs.31%.12.519.37 crores in 2011-12.62 crores in 2010-11 to 16.26% in 2010-11 to 5.31%.20 crores at the end of March 2011 to Rs.197.824.351.54% mainly due to increase in expenses on rent.736.13% from Rs.35 crores (Rs.65% from Rs. insurance and miscellaneous expenditure. During the period.8. Assets The total assets of the Bank increased by 9.96 crores in 2010-11 to Rs.578. Non-Interest Income Non-interest income stood at Rs. The average cost of deposits has consequently increased from 5. Total interest expenses of global operations increased from Rs. Other Operating Expenses have also registered an increase of 16.67. Operating Expenses There was an increase of 11. Investments increased by 5.230.19% compared to the previous year. the loan portfolio increased by 14.95% in 2011-12.3. taxes and lighting.45 crores to Rs.04 crores in 2011-12.974.23. 95.719.63. whereas the average level of deposits in India grew by 14. A major portion of the 155 .211. Operating Expenses.

The Global deposits stood at Rs.9.750.647.932.16 crores on 31st March 2011 to Rs.03 crores on 31st March 2012.51. Liabilities The Bank‟s aggregate liabilities (excluding capital and reserves) rose by 8.investment was in the domestic market in government securities and investment in Subsidiaries & Associates.81 crores as on 31st March 2011.33.36 crores as on 31st March 2012 against Rs.10.58. The increase in liabilities was mainly contributed by increase in deposits and borrowings. 156 . 43. representing an increase of 11.01% from 11. 12.75 % over the level on 31st March 2011.568.

12 157 .Table 6.

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unless tariffs are revised upwards.) may lead to a dip in the NIM.13 6.4 MAJOR FINDINGS  Analysis based on Questionnaire for SBI. these may not reflect in the Gross NPA percentage as there may be some regulatory respite. higher interest rates. and moderation in GDP growth rate.  The credit profiles of borrowers could weaken in 2012-13 because of a tight liquidity situation. depending on the credit offtake. However. 159 .Table 6. The vulnerability of banks because of their increasing exposure to State power utilities is likely to increase. which could however recover subsequently. etc.  An increase in the proportion of infrastructure loans and deregulation of saving rates could worsen the asset-liability management (ALM) profile and increase the interest rate sensitivity of banks. the cost of funds could go up partly because of the increase in the saving bank rate (by5-15 bps) and partly because of higher incremental costs. A temporary slack in credit growth (as is typically seen in the first half of financial year) and adjustment in the lending rate (to incorporate the higher rate on saving deposits.

Figure 6. Innovative Banking Services Banks 84 ICICI SBI 416. On being asked about the innovative nature of banking services.5 % customers out of 100 said that the schemes are very much innovative. around 77. 2. Thus.2 % of the customers of ICICI bank said that the banking schemes offered by ICICI bank are very much innovative. 160 . none of the PSBs may need significant Tier I capital in the short term. The SBI customer were asked about the innovative nature of SBI services. Indian banks continue to enjoy a comfortable capitalization as compared with existing RBI norms with their Tier I capital close to 9%. apart from SBI.1. 83. some of the fast-growing small private sector banks may need Tier I capital over short to medium term. However.00 1.

5 257.3% SBI customers fell that the services provided by SBI are dynamic. In comparison with SBI about dynamic services. it is found that ICICI bank offers more innovative schemes than SBI. Innovative Banking Services Banks 242. ICICI bank stands first.Figure 6. About the dynamic nature of banking services offered by ICICI bank only 51. As far as the comparisons of innovative scheme of both the banks are concerned. 161 .2.5 ICICI SBI 3. 4.5% of the customers out of 100 said that the services are very much dynamic in nature whereas 33.

e.Figure 6. Figure 6. Competitive Schemes Banks 218 ICICI 282 SBI 162 . SBI customers are negative about the competitiveness of banking schemes of SBI. 50% have the opinion that the schemes offered by SBI are very less competitive.3% customers feel that the services are very much competitive whereas majority of customers i.4% customer saying its services are very much competitive.3 Dynamic Services Banks 218 ICICI 282 SBI 5. In terms of competitiveness of banking schemes ICICI bank has only 56. Around 37.4. 6.

The customers of ICICI bank are satisfied with the services offered by ICICI bank.5 SBI ICICI 382. customers responded „yes‟ to the question whether they are satisfied with the services of ICICI bank. Figure 6.6.5 163 .7. Since 83.2 % of the. The customers who are satisfied with ICICI bank services stand at 76.5. Figure 6. Service Satisfaction Banks 84 ICICI SBI 416 8. SBI customers are also satisfied with the banking services offered by SBI.5%. Banking Services Banks 117.

2% out of total 100 respondents when compared with SBI bank in terms of satisfaction. but also the way they communicate about their new services.8 Product Satisfaction Banks 99 ICICI SBI 401 164 . For private sector banks. to their customers. not only the product and services are important.7 Customer Satisfaction Banks 84 ICICI SBI 416 10. It shows that 80. Private sector banks give more importance to customer satisfaction. opening of new branches. changes in interest rates etc. It was obvious that ICICI bank customers are more satisfied with 83.2 % out of total respondents are satisfied with the communication from ICICI bank.9. Figure 6. Figure 6.

13. SBI customers are more satisfied at 85. 165 . 14.9% customers who are not satisfied with the service of ICICI bank.5 12. changes in interest rates opening of new branches.4% of the ICICI bank customers are sometimes satisfied with marketing of ICICI bank services.5 SBI ICICI 426. etc. Figure 6.11.9 Communication Satisfaction Banks 73. The study also attempts to find out the reasons for dissatisfaction of services of ICICI bank. it is found that. When ICICI bank and SBI are compared on satisfaction with the communication from banks it is found that SBI is more prompt and efficient in communication with the customers. 15. 47. it is found that 50% customers of SBI are sometimes satisfied with the SBI markets its products.6 % customers of ICICI bank are always satisfied with the way ICICI bank markets it banking services. ICICI bank has 11. It is found that 34.1% customers of SBI are always satisfied with the way bank markets its services.3 % about communication from SBI about new services. And 61.

1.0% percent customers of ICICI bank are not satisfied because of the time taken for transaction.9% customers are not satisfied with the staff of ICICI bank.9% of the customers of SBI are not satisfied because of services. SBI has 7. 3.9% customers of SBI are not satisfied with the schemes offered by SBI 13. Figure 6.0% customers of ICICI bank are not satisfied because of banking charges.9% out of the total respondents who are not satisfied with the services of SBI.10 Staff and Scheme Satisfaction of ICICI Bank Banks 59.5 35 20 ICICI ICICI ICICI ICICI ICICI ICICI 2301.8. The Study also attempts to find out the reasons for dissatisfaction of services of SBI It is found that: 6.7% of the customers are not satisfied with the staff SBI 166 .9% customers are not satisfied because of services.0% customers are not satisfied because of schemes offered by ICICI bank. 7.5 SBI 16. 4.5 44. 7.5 500 39.

7% and service charges with 10.10. 18.5 19. 167 . When Customers of ICICI bank asked to rate ICICI bank on the basis of customer services the customer of ICICI bank have rated ICICI bank as follows: 32. It is found out from the above study that the major reason for dissatisfaction of SBI customers is banking staff with 13.8% Customers of SBI are not satisfied with service charges charged by SBI 3.5 SBI SBI SBI SBI SBI SBI ICICI 2764.9% of the customers of SBI are not satisfied because of the time taken for transaction. Figure 6.8%.11 Staff and Scheme satisfaction of SBI Banks 34. It is found out from the above study that the major reason for dissatisfaction of ICICI bank customers is banking staff and charges by ICICI bank.5 39.5 17.7% of the total respondents said ICICI bank is excellent in terms of customer services.5 54 19.5 68. 19.

4% of the total respondents said SBI is very good in terms of customer services. 168 .5 20. 7.9% of the total respondents said ICICI bank is poor in terms of customer service. Figure 6.5 ICICI ICICI 153.7% of the total respondents said ICICI bank is good in terms of customer service. 4.5% of the total respondents said SBI is excellent in terms of customer services.5 163. 37. 34.9% of the total respondents said SBI is poor in terms of customer services. 30. When customers of SBI asked to rate SBI on the basis of customer services the customers of SBI have rated SBI as follows: 25.3% of the total respondents said SBI is good in terms of customer services.5 ICICI ICICI SBI 143.7% of the total respondents said ICICI bank is very good in terms of customer service.12 ICICI Customer Service Banks 15 39.28.

10% said it is very good and 26% said it is good. Figure 6.14 Complaint Redressal Banks 20 130 160 ICICI ICICI ICICI ICICI 50 30 130 ICICI SBI 169 .5 ICICI 21.13 SBI Customer Service Banks 127.5 24.5 172 SBI 186.Figure 6.5 SBI SBI SBI 1489. When asked about the Redressal of complaints most of the marketing staff of ICICI bank replied in negative terms. Around 32% said it is satisfactory. And 6% said the Redressal of complaints at ICICI bank is excellent. 26% said it is poor.

service charges 55% banking staff 20% and other 5%. The question regarding customer complaints when asked to marketing staff of SBI they replied in following way: reply to customer complaints at SBI is excellent 12%.16 Marketing Staff Banks 25 20 40 60 100 SBI SBI SBI SBI SBI 275 ICICI 170 .22.15 Customer Complaint Banks 20 105 60 30 SBI SBI SBI SBI 80 225 SBI ICICI 23. marketing strategies 12%. very good 6%. Figure 6. IT is found that the marketing problems faced by marketing staff of SBI is related to banking products 8%. good 45% and 16% satisfactory around 21% said it is poor. Figure 6.

24.2% share of India's total non-food credit disbursements and 9% of the banking system's deposits in FY11. etc. In case of ICICI bank it is found that the marketing problems faced by marketing staff is related to banking products 9% marketing strategies 10% service charges 63% banking staff 10 and other 8%. ICICI BANK With 7. At the end of March 2011.2% in FY07 to 6. ICICI General Insurance and ICICI AMC are leaders in their respective businesses. SME and agriculture segments and on non-fund based products and services. The bank has lost its share of the banking sector's advances from 10. Only 2% of ICICI bank marketing staff feels that they have problem in convincing the customers all the times because of all these problems stated above. 79% have problems some times. at 79% where SBI staff faces problems at 51%. The major question remains whether all these problems affect the marketing staff in convincing the customer about other products. 26.7 trillion) and a franchise of over 5. its subsidiaries ICICI Life Insurance. banking staff. It is found that most of the time ICICI bank marketing staff faces problems in convincing the customers because of reasons such as service charges. Retail assets constituted 33% of advances in FY11 as against 65% in FY07.700 ATMs and 1. and 10% never have problems because of all these reason to convince the customers. 25.800 branches spread across the country. The bank is focusing on loan origination in the large corporate. 171 . ICICI Bank is the second largest bank in the country after SBI in terms of asset size. 9% have problems most of the time.8% in FY11. Besides the bank itself being the market leader across retail loan portfolios. the bank had assets of over US$ 104 bn (Rs 4.

50 35.3% Dividends per share Rs 16.6 2.1% Dividend yield (eoy) % 1. Table.1% Low Rs 652 1.9% Cash flow per share Rs 310.14 Equity Share Data EQUITY SHARE DATA ICICI BANK SBI ICICI BANK/ 31/3/2012 31/3/2012 SBI High Rs 1.193.1% 172 .8 45.0% Earnings per share Rs 54.000 ATMs across the country.960 38.5 120. SBI has a network of almost 13.00 47.576 41.9 1.5 684. the retail side is also fast scatching up. 6.4 -402. mid and small) loans (51% of total advances in FY11).1 -13.6 15.128 2.SBI SBI is India's largest bank in the country with an asset size of over 12 trillion. Although the bank's loan book is largely skewed towards corporate (large.4% Sales per share Rs 329.700 branches and over 20.

wages/employee Rs Th 876.9 3.5% Avg.519.805 1.4 -168. sales/employee Rs Th 6.5 712.0 184.1% Avg P/E ratio x 16.7% P/CF ratio (eoy) x 2.7 1.919 67.0% Total wages/salary Rs m 51.Book value per share Rs 531.6 -11.8 6.831.2% 173 .1 33.840 23.9 -9.04 171.8% Dividend payout % 30.0 261.7 1.049 220.6 1.152.1% Avg.5% Price / Book Value ratio x 1.7% Avg Mkt Cap Rs m 1.6% Shares outstanding (eoy) m 1.5 -260.521.025.024.0 1.59 671.9 85.311.3 86.4% No.4% Avg.1 95.583.4 116. of employees `000 58 215 27.8% Bonus/Rights/Conversions ESOS PI - Price / Sales ratio x 2. net profit/employee Rs Th 1.

884 1.471.7 35.431 49.1% Total revenues Rs m 666.309.583 1.429 153.2% Effective tax rate % 25.949 1.128 43.490 86.1 73.8% Profit after tax Rs m 76.770.0% Profit before tax Rs m 106.8% Gross profit margin % 96.7% Gross profit Rs m 365.866 246.3 89.3% 174 .15 Income data INCOME DATA Net Sales Rs m 379.9% Depreciation Rs m 295.328 37.8% Other income Rs m 286.0 108.947 -6.530 27.4% Minority Interest Rs m -2.132 893.395 31.302 46.196 28.Table 6.520 468.354 96.974 25.1% Interest Rs m 250.634 298.8% Prior Period Items Rs m 0 0 - Extraordinary Inc (Exp) Rs m 0 0 - Tax Rs m 27.560 63.

702 25.16Balance Sheet Data BALANCE SHEET DATA Current assets Rs m 2.1% Current liabilities Rs m 0 0 - Net working cap to sales % 768.921.528 6.914 102.Net profit margin % 20.7% Net worth Rs m 612.320 74.8% "Free" reserves Rs m 438.579.0% Table 6.3% Current ratio x 43.380 76.127 571.0% Inventory Turnover Days 0 0 - Debtors Turnover Days 0 0 - Net fixed assets Rs m 54.612.1% 175 .710 171.765 1.636.080 73.1 10.3% Share capital Rs m 11.9 790.0 100.4 193.300 57.7% Long term debt Rs m 1.6 97.966 1.254 11.062.0 43.

562 33.5 177.2% Return on assets % 5.0 0.299.1% Exports to sales % 0.1 0.0 - Imports to sales % 0.6 1.914 18.3 111. charts.4 1. 176 .Total assets Rs m 6.9% Debt to equity ratio x 2.041.0% Interest coverage x 1.4 5.4% Return on capital % 15.4 86.0 0. diagrams and based on percentages.7 94. statically tool test of significance (z-test) has been applied.9 37.1 78.5% Return on equity % 12. tables.5 14.0 - Net fx Rs m 0 0 - 6.9 42.5 TESTING OF HYPOTHESIS In the beginning of the study the researcher had set hypothesis based on the survey data.0% Sales to assets ratio x 0.

(Z=1. The services provided by SBI are very much innovative is tested against not so much innovative by using the proportion of customers responses who respond as the services are innovative. The services provided by ICICI bank and SBI are homogeneous is tested against services provided by ICICI bank is more innovative than SBI. (Z2-5.” In the light of the above – cited objective. Therefore the hypothesis “services provided by SBI bank are innovative” stand s accepted. It is found that the services provided by ICICI bank are very much innovative (Z1=6. it is found that the services provided by SBI are very much innovative.5) 1%level of significance.02) Therefore the hypothesis “Services provide ICICI bank and SBI are homogenous” stands accepted. Likewise the sub – hypothesis (H2) – the banking services offered by SBI are innovative. Therefore the hypothesis “services provided by ICICI bank are innovative” stands accepted. was put to statistical test by using z – test of significance.. was put to statistical test by using z – test of significance.The hypothesis of the study: “ICICI Bank and SBI are provides innovative. 177 . (H3). dynamic and competitive services in terms of customer satisfaction in comparison to each other. The sub – hypothesis. However these banks are facing problems while marketing their services.innovative services provided by ICICI bank and SBIs are homogenous put to statistical test by using z-test if significance.64) 1 percent level significance. The services provided by ICICI banks are very much invocative are tested against not so much innovative by using the proportion of customer‟s responses who responded as the service are innovative. the researcher for the present study has set the following hypotheses: The sub hypothesis (HI) – The banking services offered by ICICI bank are innovative.

It is found that the customers of ICICI bank are satisfied with the services provided by ICICI bank at (Z1=6. The sub – hypotheses. It is formed that the services provided by SBI are not very much competitive at (Z2 = -2. Therefore the hypothesis “the banking services provided by ICICI bank are dynamic” is rejected. There for the hypothesis “the banking customers of ICICI bank are satisfied with the services provided by ICICI bank” stands accepted. Therefore the hypothesis “the banking services provided by SBI are competitive” is rejected. 178 .The sub – hypotheses. The services provided by ICICI banks are very dynamic are tested against not so much dynamic by using the proportion of customer‟s responses who responded as the services are dynamic. The customers of ICICI bank are satisfied with services provided by ICICI bank.64) at 1 percent significance level. It is found that the services provided by ICICI bank are not very much dynamic at (Z1=0. Sub hypothesis. The services provided by SBI are very much competitive are tested against not so much competitive by using the proportion of customers Reponses who responded as the services are competitive.54) 1 percent level of significance. (H4) – the banking service offered by ICICI bank are Dynamic. is tested by using the proportion of customer responses who said they are not satisfied with the services. was put to statistical test by using z – test of significance. namely (H6) – “the customers of ICICI bank are satisfied with the services of ICICI Bank” was put to statistical test by using the z – test of significance.3) 1 % level of significance. (H5) – “the services offered by SBI are competitive” was put to statistical test by using the z – test of significance.

19). It is found that the customers of SBI are satisfied. Z2=5.3) it is found that both the banks provide services to the satisfaction of customers (Z1=6. The customers of SBI are satisfied with services provided by SBI is tested by using the proportion of customer responses who said they are not satisfied with the services. Therefore the “the banking customers of SBI bank are satisfied with the services provided by SBI stands accepted.The sub – hypothesis (H7) “the customers of SBI are satisfied with the services provided by SBI” was put to statistical test by using (Z-test) of significance.64. Sub hypothesis (H8) “Services offered by ICICI bank and SBI are same” was put to statistical test of significance (z-test) comparing the customer satisfaction of ICICI bank (Z1=6. Therefore the Hypothesis “services offered by SBI and ICICI banks are same.3) and there is no significant difference between them in the same (Z=1.” Stands accepted.64) with SBI (Z2=5. 179 .