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IILM Institute for Higher Education, Gurgaon

I express my gratitude to Ms. Tanuja Kaushik,
faculty guide who has given us moral support to do
our project work.

I also extend my thankfulness to the management
of ICICI Bank Ltd. and SBI for the support and
information provided towards the completion of
this project report.

We here by declare that the project entitled “A
been completed by our group members . We assure
that this project is unique and has not been
reproduced or copied from any other sources.

Group Members:

Abhishek Kumar
Radhika Garg
Amit Dhaiya
Saniya Gupta
Davesh Malik
Shweta Boora


Banking in India originated in the last decades of the 18th
century. The oldest bank in existence in India is the State Bank of
India, a government-owned bank that traces its origins back to June
1806 and that is the largest commercial bank in the country. Central
banking is the responsibility of the Reserve Bank of India, which in
1935 formally took over these responsibilities from the then Imperial
Bank of India, relegating it to commercial banking functions. After
India's independence in 1947, the Reserve Bank was nationalized and
given broader powers. In 1969 the government nationalized the 14
largest commercial banks; the government nationalized the six next
largest in 1980.

Currently, India has 88 scheduled commercial banks (SCBs) - 27
public sector banks (that is with the Government of India holding a
stake), 29 private banks (these do not have government stake; they
may be publicly listed and traded on stock exchanges) and 31 foreign
banks. They have a combined network of over 53,000 branches and
17,000 ATMs. According to a report by ICRA Limited, a rating agency,
the public sector banks hold over 75 percent of total assets of the
banking industry, with the private and foreign banks holding 18.2%
and 6.5% respectively.

Early history:

Banking in India originated in the last decades of the 18th century.
The first banks were The General Bank of India, which started in
1786, and the Bank of Hindustan, both of which are now defunct. The
oldest bank in existence in India is the State Bank of India, which
originated in the Bank of Calcutta in June 1806, which almost
immediately became the Bank of Bengal. This was one of the three
presidency banks, the other two being the Bank of Bombay and the
Bank of Madras, all three of which were established under charters
from the British East India Company. For many years the Presidency
banks acted as quasi-central banks, as did their successors. The three
banks merged in 1925 to form the Imperial Bank of India, which, upon
India's independence, became the State Bank of India.

Indian merchants in Calcutta established the Union Bank in 1839, but
it failed in 1848 as a consequence of the economic crisis of 1848-49.
The Allahabad Bank, established in 1865 and still functioning today, is
the oldest Joint Stock bank in India. When the American Civil War
stopped the supply of cotton to Lancashire from the Confederate
States, promoters opened banks to finance trading in Indian cotton.
With large exposure to speculative ventures, most of the banks
opened in India during that period failed. The depositors lost money
and lost interest in keeping deposits with banks. Subsequently,
banking in India remained the exclusive domain of Europeans for next
several decades until the beginning of the 20th century.

Foreign banks too started to arrive, particularly in Calcutta, in the
1860s. The Comptoire d'Escompte de Paris opened a branch in
Calcutta in 1860, and another in Bombay in 1862; branches in Madras
and Pondicherry, then a French colony, followed. Calcutta was the
most active trading port in India, mainly due to the trade of the
British Empire, and so became a banking center.

Around the turn of the 20th Century, the Indian economy was passing
through a relative period of stability. Around five decades had
elapsed since the Indian Mutiny, and the social, industrial and other
infrastructure had improved. Indians had established small banks,
most of which served particular ethnic and religious communities.

The presidency banks dominated banking in India but there were also
some exchange banks and a number of Indian joint stock banks. All
these banks operated in different segments of the economy. The
exchange banks, mostly owned by Europeans, concentrated on
financing foreign trade. Indian joint stock banks were generally under
capitalized and lacked the experience and maturity to compete with
the presidency and exchange banks. This segmentation let Lord
Curzon to observe, "In respect of banking it seems we are behind the
times. We are like some old fashioned sailing ship, divided by solid
wooden bulkheads into separate and cumbersome compartments."

By the 1900s, the market expanded with the establishment of banks
such as Punjab National Bank, in 1895 in Lahore and Bank of India, in
1906, in Mumbai - both of which were founded under private
ownership. Punjab National Bank is the first Swadeshi Bank founded
by the leaders like Lala Lajpat Rai, Sardar Dyal Singh Majithia. The
Swadeshi movement in particular inspired local businessmen and
political figures to found banks of and for the Indian community. A
number of banks established then have survived to the present such
as Bank of India, Corporation Bank, Indian Bank, Bank of Baroda,
Canara Bank and Central Bank of India.The fervour of Swadeshi
movement lead to establishing of many private banks in Dakshina
Kannada and Udupi district which were unified earlier and known by
the name South Canara ( South Kanara ) district.Four nationalised
banks started in this district and also a leading private sector bank.
Hence undivided Dakshina Kannada district is known as "Cradle of
Indian Banking".

From World War I to Independence:

The period during the First World War (1914-1918) through the end of
the Second World War (1939-1945), and two years thereafter until the
independence of India were challenging for Indian banking. The years
of the First World War were turbulent, and it took its toll with banks
simply collapsing despite the Indian economy gaining indirect boost
due to war-related economic activities. At least 94 banks in India
failed between 1913 and 1918 as indicated in the following table:

Number of banks Authorized capital Paid-up Capital
that failed (Rs. Lakhs) (Rs. Lakhs)

12 274 35

42 710 109

11 56 5

13 231 4

9 76 25

7 209 1


The partition of India in 1947 adversely impacted the economies of
Punjab and West Bengal, paralyzing banking activities for months.
India's independence marked the end of a regime of the Laissez-faire
for the Indian banking. The Government of India initiated measures to
play an active role in the economic life of the nation, and the
Industrial Policy Resolution adopted by the government in 1948
envisaged a mixed economy. This resulted into greater involvement
of the state in different segments of the economy including banking
and finance. The major steps to regulate banking included:

• In 1948, the Reserve Bank of India, India's central banking
authority, was nationalized, and it became an institution owned
by the Government of India.
• In 1949, the Banking Regulation Act was enacted which
empowered the Reserve Bank of India (RBI) "to regulate, control,
and inspect the banks in India."

• The Banking Regulation Act also provided that no new bank or
branch of an existing bank could be opened without a license
from the RBI, and no two banks could have common directors.

However, despite these provisions, control and regulations, banks in
India except the State Bank of India, continued to be owned and
operated by private persons. This changed with the nationalization of
major banks in India on 19 July, 1969.


By the 1960s, the Indian banking industry has become an important
tool to facilitate the development of the Indian economy. At the same
time, it has emerged as a large employer, and a debate has ensued
about the possibility to nationalize the banking industry. Indira
Gandhi, the-then Prime Minister of India expressed the intention of
the GOI in the annual conference of the All India Congress Meeting in
a paper entitled "Stray thoughts on Bank Nationalization." The paper
was received with positive enthusiasm. Thereafter, her move was
swift and sudden, and the GOI issued an ordinance and nationalized
the 14 largest commercial banks with effect from the midnight of July
19, 1969. Jayaprakash Narayan, a national leader of India, described
the step as a "masterstroke of political sagacity." Within two weeks of
the issue of the ordinance, the Parliament passed the Banking
Companies (Acquisition and Transfer of Undertaking) Bill, and it
received the presidential approval on 9 August, 1969.

A second dose of nationalization of 6 more commercial banks
followed in 1980. The stated reason for the nationalization was to
give the government more control of credit delivery. With the second
dose of nationalization, the GOI controlled around 91% of the banking
business of India. Later on, in the year 1993, the government merged
New Bank of India with Punjab National Bank. It was the only merger
between nationalized banks and resulted in the reduction of the
number of nationalized banks from 20 to 19. After this, until the
1990s, the nationalized banks grew at a pace of around 4%, closer to
the average growth rate of the Indian economy.

The nationalized banks were credited by some, including Home
minister P. Chidambaram, to have helped the Indian economy
withstand the global financial crisis of 2007-2009.


In the early 1990s, the then Narsimha Rao government embarked on
a policy of liberalization, licensing a small number of private banks.
These came to be known as New Generation tech-savvy banks, and
included Global Trust Bank (the first of such new generation banks to
be set up), which later amalgamated with Oriental Bank of
Commerce, UTI Bank(now re-named as Axis Bank), ICICI Bank and
HDFC Bank. This move, along with the rapid growth in the economy of
India, revitalized the banking sector in India, which has seen rapid
growth with strong contribution from all the three sectors of banks,
namely, government banks, private banks and foreign banks.

The next stage for the Indian banking has been setup with the
proposed relaxation in the norms for Foreign Direct Investment,
where all Foreign Investors in banks may be given voting rights which
could exceed the present cap of 10%,at present it has gone up to
49% with some restrictions.

The new policy shook the Banking sector in India completely.
Bankers, till this time, were used to the 4-6-4 method (Borrow at
4%;Lend at 6%;Go home at 4) of functioning. The new wave ushered
in a modern outlook and tech-savvy methods of working for
traditional banks.All this led to the retail boom in India. People not
just demanded more from their banks but also received more.

Currently (2007), banking in India is generally fairly mature in terms
of supply, product range and reach-even though reach in rural India
still remains a challenge for the private sector and foreign banks. In
terms of quality of assets and capital adequacy, Indian banks are
considered to have clean, strong and transparent balance sheets
relative to other banks in comparable economies in its region. The
Reserve Bank of India is an autonomous body, with minimal pressure
from the government. The stated policy of the Bank on the Indian
Rupee is to manage volatility but without any fixed exchange rate-
and this has mostly been true.

With the growth in the Indian economy expected to be strong for
quite some time-especially in its services sector-the demand for
banking services, especially retail banking, mortgages and
investment services are expected to be strong. One may also expect
M&As, takeovers, and asset sales.

In March 2006, the Reserve Bank of India allowed Warburg Pincus to
increase its stake in Kotak Mahindra Bank (a private sector bank) to
10%. This is the first time an investor has been allowed to hold more
than 5% in a private sector bank since the RBI announced norms in
2005 that any stake exceeding 5% in the private sector banks would
need to be vetted by them.

In recent years critics have charged that the non-government owned
banks are too aggresive in their loan recovery efforts in connection
with housing, vehicle and personal loans. There are press reports that
the banks' loan recovery efforts have driven defaulting borrowers to

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.

The State Bank Group includes a network of eight banking subsidiaries
and several non-banking subsidiaries offering merchant banking services, fund
management, factoring services, primary dealership in government securities,
credit cards and insurance.

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. In 1921, the Bank of Bengal and
two other Presidency banks (Bank of Madras and Bank of Bombay) were
amalgamated to form the Imperial Bank of India. In 1955, the controlling interest in
the Imperial Bank of India was acquired by the Reserve Bank of India and the State
Bank of India (SBI) came into existence by an act of Parliament as successor to the
Imperial Bank of India.
Today, State Bank of India (SBI) has spread its arms around the world and has a
network of branches spanning all time zones. SBI's International Banking Group
delivers the full range of cross-border finance solutions through its four wings - the
Domestic division, the Foreign Offices division, the Foreign Department and the
International Services division.

State Bank of India (SBI) (LSE: SBID) is the largest bank in India. If one measures by the
number of branch offices and employees, SBI is the largest bank in the world. Established in
1806 as Bank of Calcutta, it is the oldest commercial bank in the Indian subcontinent. SBI
provides various domestic, international and NRI products and services, through its vast network
in India and overseas. With an asset base of $126 billion and its reach, it is a regional banking
behemoth. The government nationalized the bank in 1955, with the Reserve Bank of India taking

a 60% ownership stake. In recent years the bank has focused on three priorities,
1), reducing its huge staff through Golden handshake schemes known as the Voluntary
Retirement Scheme, which saw many of its best and brightest defect to the private sector, 2),
computerizing its operations and 3), changing the attitude of its employees (through an ambitious
programme aptly named 'Parivartan' which means change) as a large number of employees are
very rude to customers.


The State Bank of India traces its roots to the first decade of 19th century, when
the Bank of Calcutta, later renamed the Bank of Bengal, was established on 2 June 1806.

The government amalgamated Bank of Bengal and two other Presidency banks,
namely, the Bank of Bombay (incorporated on 15 April 1840) and the Bank of Madras on 27
January 1921, and named the reorganized banking entity the Imperial Bank of India. All these
Presidency banks had been incorporated as joint stock companies, and were the result of the
royal charters. The Imperial Bank of India continued as a joint stock company. Until the
establishment of a central bank in India the Imperial Bank and its early predecessors served as
India's central bank, at least in terms of issuing the currency. The State Bank of India Act 1955,
enacted by the Parliament of India, authorized the Reserve Bank of India, which is the central
banking organization of India, to acquire a controlling interest in the Imperial Bank of India,

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


June 2, 1806: The Bank of Calcutta established.

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

April 15, 1840: Bank of Bombay established.

July 1, 1843: Bank of Madras established.

1861: Paper Currency Act passed.

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

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

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

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

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

government merged it with State Bank of India.

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

Bank of India (RBI) shareholding in State Bank of India (SBI),
consisting of over 314 million equity shares at a total amount of over 355
billion rupees.

Associate banks:
There are seven other associate banks that fall under SBI. They all use the "State Bank
of" name followed by the regional headquarters' name. These were originally banks belonging to

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

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

integrated these banks with the State Bank of India to expand its rural outreach.
The State Bank group refers to the seven associates and the parent bank. All the banks use the
same logo of a blue keyhole. Currently, the group is merging all the associate banks into SBI,
which will create a "mega bank", and one hopes, streamline operations and unlock value.




4. State Bank of Bikaner & Jaipur

5. State Bank of Hyderabad

6. State Bank of Indore

7. State Bank of Mysore

8. State Bank of Patiala

9. State Bank of Saurashtra

10. State Bank of Travancore
Foreign Offices:

State Bank of India is present in 32 countries, where it has 84 offices
serving the international needs of the bank's foreign customers, and in some cases conducts retail
operations. The focus of these offices is India-related business.

Foreign Branches:
SBI has branches in these countries:

The Israeli branch

1. Australia

2. Bahrain

3. Bangladesh

4. Belgium

5. Canada

6. Dubai

7. France

8. Germany

9. Hong Kong

10. Israel

11. Japan

12. People's Republic of China

13. Republic of Maldives

14. Singapore

15. South Africa

16. Sri Lanka

17. Sultanate of Oman

18. The Bahamas

19. U.K.
20. U.S.A

Subsidiaries and Joint Ventures:
In addition to the foreign branches above, SBI has these wholly owned subsidiaries and
joint ventures:

1. Nepal State Bank Limited

2. SBI Mauritius

3. Indian Ocean International Bank (Mauritius)

4. SBI Canada

5. SBI California


Mumbai, India location.

State Bank of India has often acted as guarantor to the Indian Government, most
notably during Chandra Shekhar's tenure as Prime Minister of India. With more than 9400
branches and a further 4000+ associate bank branches, the SBI has extensive coverage.

Following its arch-rival ICICI Bank, State Bank of India has electronically
networked most of its metropolitan, urban and semi-urban branches under its Core Banking

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

the largest ATM network in the country having more than 5600 ATMs [1]. The
State Bank of India has had steady growth over its history, though the Harshad Mehta scam in

1992 marred its image. In recent years, the bank has sought to expand its overseas
operations by buying foreign banks. It is the only Indian bank to feature in the top 100 world
banks in the Fortune Global 500 rating and various other rankings. According to the Forbes 2000
listing it tops all Indian companies.

Fortune Global 500 Ranking – 2007:
SBI debuted in the Fortune Global 500[2] at 498 in 2006. In 2007 it moved up to 495. As
per fortune 500-2007 following are the data for SBI in $ million. Revenues 15,119.4. Profits
1,407.3. Assets 187,547.1. Stockholders' Equity 9,786.2

Group companies:
1. SBI Capital Markets Ltd

2. SBI Mutual Fund (A Trust)

3. SBI Factors and Commercial Services Ltd


5. SBI Cards and Payment Services Pvt Ltd

6. SBI Life Insurance Co. Ltd - Bancassurance (Life Insurance)

7. SBI Funds Management Pvt Ltd

8. SBI Canada

IT Initiatives:

According to PM Network (December 2006, Vol. 20, No. 12), State Bank
of India launched a project in 2002 to network more than 14,000 domestic and 70 foreign offices
and branches. 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, over 10,000 branches have been covered.
The new infrastructure serves as the bank's backbone, carrying all applications, such as the IP
telephone network, ATM network, Internet banking and internal e-mail. The new infrastructure

has enabled the bank to further grow its ATM network with plans to add another
3,000 by the end of 2007 raising the total number to 8,600. As of September 20, 2007 SBI has
7236 ATMs.
Corporate Details:
This site provides comprehensive information on State Bank of India or
SBI Bank, the premier Nationalized Indian Bank. State Bank of India is actively
involved since 1973 in non-

profit activity called Community Services Banking.

State Bank of India is India's largest bank amongst all public and private sector
banks operating in India. State Bank of India owns and operates the following
subsidiaries and Joint Ventures –

 State Bank Of India Credit Card
 State Bank Of India Online
 State Bank Of India USA
 State Bank Of India Services
 State Bank Of India Mutual Funds
 State Bank Of India Branch
 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.

• State Bank of India (California).

• State Bank of India (Canada).
• INMB Bank Ltd, Lagos.

Non- banking Subsidiaries.
• SBI Capital Markets Ltd (SBICAP)

• SBI Funds Management Pvt Ltd (SBI FUNDS)


• SBI Factors and Commercial Services Pvt Ltd (SBI FACTORS)

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

Joint ventures:
• SBI Life Insurance Company Ltd (SBI LIFE).

State Bank of India administrative structure is well equipped to oversee the
large network of branches in India and abroad. The State Bank of India 14 Local
Head Offices and 57 Zonal Offices are located at important cities spread throughout
the country. State Bank of India has 52 foreign offices in 34 countries across the
globe. 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.

The main activities of are into -

• Personal Banking.

• NRI Services.

• Agriculture.

• International.

• Corporate.

• SME.

• Domestic Treasury.
State Bank of India offers the following services to its customers -

• Domestic Treasury.

• SBI Vishwa Yatra Foreign Travel Card.

• Broking Services

• Revised Service Charge.

• ATM Services.

• Internet Banking.

• E-Pay.

• E-Rail.


• Safe Deposit Lockers.

• Gift Cheques.

• MICR Codes.

• Foreign Inward Remittances.

Moreover, State Bank of India has Colleges/Institutes/Training Centers that are the
seats of learning and research and development. It caters not only to the
employees of State Bank of India but also other banks/establishments in India and

SBI Bank India had Total Income of Rs 68376.83 crore for the financial year
2006 -07. State Bank of India has posted Net Income to the tune of Rs 6364.38
crore or the financial year 2006 -07.

State Bank of India is headed by Mr. O. P. Bhatt, Chairman.
Company Profile of ICICI:

ICICI Bank is India's second-largest bank with total assets of Rs. 3,849.70
billion (US$ 82 billion) at September 30, 2008 and profit after tax Rs. 17.42 billion
for the half year ended September 30, 2008. The Bank has a network of about
1,400 branches and 4,530 ATMs in India and presence in 18 countries. ICICI Bank
offers a wide range of banking products and financial services to corporate and
retail customers through a variety of delivery channels and through its specialized
subsidiaries and affiliates in the areas of investment banking, life and non-life
insurance, venture capital and asset management. The Bank currently has
subsidiaries in the United Kingdom, Russia and Canada, branches in United States,
Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International Finance
Centre and representative offices in United Arab Emirates, China, South Africa,
Bangladesh, Thailand, Malaysia and Indonesia. Our UK subsidiary has established
branches in Belgium and Germany.

ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and the
National Stock Exchange of India Limited and its American Depositary Receipts
(ADRs) are listed on the New York Stock Exchange (NYSE).

ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial
institution, and was its wholly-owned subsidiary. ICICI's shareholding in ICICI Bank
was reduced to 46% through a public offering of shares in India in fiscal 1998, an
equity offering in the form of ADRs listed on the NYSE in fiscal 2000, ICICI Bank's
acquisition of Bank of Madura Limited in an all-stock amalgamation in fiscal 2001,
and secondary market sales by ICICI to institutional investors in fiscal 2001 and
fiscal 2002. ICICI was formed in 1955 at the initiative of the World Bank, the
Government of India and representatives of Indian industry. The principal objective
was to create a development financial institution for providing medium-term and
long-term project financing to Indian businesses. In the 1990s, ICICI transformed its
business from a development financial institution offering only project finance to a
diversified financial services group offering a wide variety of products and services,
both directly and through a number of subsidiaries and affiliates like ICICI Bank. In
1999, ICICI become the first Indian company and the first bank or financial
institution from non-Japan Asia to be listed on the NYSE.

After consideration of various corporate structuring alternatives in the context of
the emerging competitive scenario in the Indian banking industry, and the move
towards universal banking, the managements of ICICI and ICICI Bank formed the
view that the merger of ICICI with ICICI Bank would be the optimal strategic
alternative for both entities, and would create the optimal legal structure for the
ICICI group's universal banking strategy. The merger would enhance value for ICICI
shareholders through the merged entity's access to low-cost deposits, greater
opportunities for earning fee-based income and the ability to participate in the
payments system and provide transaction-banking services. The merger would
enhance value for ICICI Bank shareholders through a large capital base and scale of
operations, seamless access to ICICI's strong corporate relationships built up over
five decades, entry into new business segments, higher market share in various
business segments, particularly fee-based services, and access to the vast talent
pool of ICICI and its subsidiaries. In October 2001, the Boards of Directors of ICICI
and ICICI Bank approved the merger of ICICI and two of its wholly-owned retail
finance subsidiaries, ICICI Personal Financial Services Limited and ICICI Capital
Services Limited, with ICICI Bank. The merger was approved by shareholders of ICICI
and ICICI Bank in January 2002, by the High Court of Gujarat at Ahmadabad in
March 2002, and by the High Court of Judicature at Mumbai and the Reserve Bank
of India in April 2002. Consequent to the merger, the ICICI group's financing and
banking operations, both wholesale and retail, have been integrated in a single

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

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. Bank has total assets of about USD 100 billion (at the end of March 2008), a network of
over 1,399 branches, 22 regional offices and 49 regional processing centres, about 4,485 ATMs
(at the end of September 2008), and 24 million customers (at the end of July 2007). ICICI Bank
offers a wide range of banking products and financial services to corporate and retail customers
through a variety of delivery channels and specialised subsidiaries and affiliates in the areas of
investment banking, life and non-life insurance, venture capital and asset management. (These
data are dynamic.) ICICI Bank is also the largest issuer of credit cards in India. [1]. ICICI Bank
has got its equity shares listed on the stock exchanges at Kolkata and Vadodara, Mumbai and the
National Stock Exchange of India Limited, and its ADRs on the New York Stock Exchange

The Bank is expanding in overseas markets and has the largest international balance sheet among
Indian banks. ICICI Bank now has wholly-owned subsidiaries, branches and representatives
offices in 18 countries, including an offshore unit in Mumbai. This includes wholly owned
subsidiaries in Canada, Russia and the UK, offshore banking units in Bahrain and Singapore, an
advisory branch in Dubai, branches in Belgium, Hong Kong and Sri Lanka, and representative
offices in Bangladesh, China, Malaysia, Indonesia, South Africa, Thailand, the United Arab
Emirates and USA. Overseas, the Bank is targeting the NRI (Non-Resident Indian) population in

ICICI reported a 1.15% rise in net profit to Rs. 1,014.21 crore on a 1.29% increase in total
income to Rs. 9,712.31 crore in Q2 September 2008 over Q2 September 2007.

1955: The Industrial Credit and Investment Corporation of India Limited (ICICI) was
incorporated at the initiative of World Bank, the Government of India and representatives of
Indian industry, with the objective of creating a development financial institution for providing
medium-term and long-term project financing to Indian businesses. Mr.A.Ramaswami Mudaliar
is elected as the first Chairman of ICICI Limited.

ICICI emerges as the major source of foreign currency loans to Indian
industry. Besides funding from World Bank and other multi-lateral agencies,
ICICI was also among the first Indian companies to raise funds from
international markets.

1956: ICICI declared its first dividend, of 3.5%.

1958: Mr.G.L.Mehta appointed the second Chairman of ICICI Ltd.

1960: ICICI building at 163, Backbay Reclamation, inaugurated.

1961: The first West German loan of DM 5 million from Kredianstalt obtained.
1967: ICICI made its first debenture issue for Rs.6 crore, which was oversubscribed.

1969: The first two regional offices set up in Calcutta and Madras.

1972: ICICI becomes the second entity in India to set up merchant banking services.

Mr. H. T. Parekh appointed the third Chairman of ICICI.

1977: ICICI sponsored the formation of Housing Development Finance Corporation and
manages its first equity public issue.

1978: Mr. James Raj appointed the fourth Chairman of ICICI.

1979: Mr.Siddharth Mehta appointed the fifth Chairman of ICICI.

1982: ICICI became the first ever Indian borrower to raise European Currency Units.

ICICI commences leasing business.

1984: Mr. S. Nadkarni appointed the sixth Chairman of ICICI.

1985: Mr. N.Vaghul appointed the seventh Chairman and Managing Director of ICICI.

1986: ICICI became the first Indian institution to receive ADB Loans.

ICICI, along with UTI, set up Credit Rating Information Services of India
Limited, India's first professional credit rating agency.

ICICI promotes Shipping Credit and Investment Company of India Limited.

The Corporation made a public issue of Swiss Franc 75 million in Switzerland,
the first public issue by any Indian entity in the Swiss Capital Market.

1987: ICICI signed a loan agreement for Sterling Pound 10 million with Commonwealth
Development Corporation (CDC), the first loan by CDC for financing projects in India.

1988: Promoted TDICI - India's first venture capital company.

1993: ICICI Securities and Finance Company Limited in joint venture with J. P. Morgan set up.

ICICI Asset Management Company set up.

1994: ICICI Bank set up.
1996: ICICI Ltd became the first company in the Indian financial sector to raise GDR.

SCICI merged with ICICI Ltd.

Mr. K.V.Kamath appointed the Managing Director and CEO of ICICI Ltd

1997 : ICICI Ltd was the first intermediary to move away from a single prime rate structure to a
three-tier prime rates structure and introduced yield-curve-based pricing.

The name "The Industrial Credit and Investment Corporation of India Ltd"
changed to "ICICI Ltd."

ICICI Ltd. announced the takeover of ITC Classic Finance.

1998: A new logo symbolizing the common corporate identity for the ICICI Group was

ICICI announced takeover of Anagram Finance.

1999 : ICICI launched retail finance - car loans, home loans and loans for consumer durables.

ICICI becomes the first Indian company to get listed on the NYSE through an
issue of American Depositary Shares.

2000 : ICICI Bank became the first commercial bank from India to get its stock listed on the

ICICI Bank announces merger with Bank of Madura.

2001: The Boards of ICICI Ltd and ICICI Bank approved the merger of ICICI Ltd. with ICICI

2002: ICICI Ltd merged with ICICI Bank Ltd to create India’s second-largest bank in terms of

ICICI assigned higher than "Sovereign" rating by Moody’s.

ICICI Bank launched India’s first CDO (Collateralised Debt Obligation) Fund
named Indian Corporate Collateralised Debt Obligation Fund (ICCDO Fund).
"E-Lobby", a self-service banking centre and a first of its kind in India, is
inaugurated in Pune.

ICICI Bank launched Private Banking.

A 1,100-seat Call Centre for Customer Care by phone and e-mail was set up
in Hyderabad.

ICICI Bank Home Shoppe, the first-ever permanent aggregation and display of
housing projects in the county, launched in Pune.

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

2003: The first Integrated Currency Management Centre launched in Pune.

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

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

ICICI Bank’s representative office inaugurated in Dubai.

Representative office set up in China.

ICICI Bank’s UK subsidiary launched.

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

A subsidiary of ICICI Bank was set up in Canada.

Temasek Holdings acquired 5.2% stake in ICICI Bank.

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

2004: Max Money, a home loan product that offers the dual benefit of higher eligibility and
affordability to a customer, introduced.

Mobile banking service in India launched in association with Reliance
India’s first multi-branded credit card with HPCL and Airtel launched.

Kisan Loan Card and innovative, low-cost ATMs were launched in rural India.

ICICI Bank and CNBC TV 18 announced India’s first ever awards recognizing
the achievements of SMEs, a pioneering initiative to encourage the
contribution of Small and Medium Enterprises to the growth of the Indian

ICICI Bank opened its 500th branch in India.

ICICI Bank introduced partnership model wherein ICICI Bank would forge an
alliance with existing micro finance institutions (MFIs). The MFI would
undertake the promotional role of identifying, training and promoting the
micro-finance clients and ICICI Bank would finance the clients directly on the
recommendation of the MFI.

ICICI Bank introduced 8 to 8 Banking wherein all the branches of the Bank
would remain open from 8a.m. to 8 p.m. from Monday to Saturday.

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

2005: First rural branch and ATM launched in Uttar Pradesh at Delpandarwa, Hardoi.

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

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

Private Banking Masters 2005, a nationwide Golf tournament for high
networth clients of the Private Banking division launched. This event is the
largest domestic invitation amateur golf event conducted in India.

Becomes the first Indian company to make a simultaneous equity offering of
$1.8 billion in India, the United States and Japan.

Acquired IvestitsionnoKreditny Bank of Russia.
ICICI Bank became the largest bank in India in terms of its market

ICICI Bank became the first private entity in India to offer a discount to retail
investors for its follow-up offer.

2006: ICICI Bank became the first Indian bank to issue hybrid Tier-1 perpetual debt in the
international markets.

ICICI Bank subsidiary set up in Russia.

Introduced a new product - ‘NRI smart save Deposits’ – a unique fixed deposit
scheme for nonresident Indians.

Representative offices opened in Thailand, Indonesia and Malaysia.

ICICI Bank became the largest retail player in the market to introduce a
biometric enabled smart card that allow banking transactions to be
conducted on the field. A low-cost solution, this became an effective delivery
option for ICICI Bank’s micro-finance institution partners.

Financial counseling centre Disha launched. Disha provides free credit
counseling, financial planning and debt management services.

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

2007: ICICI Bank makes a USD 2 billion three-tranche international bond offering, which
becomes the largest bond offering by an Indian bank.

Sangli Bank was amalgamated with ICICI Bank.

ICICI Bank raised Rs 20,000 crore (approx $5 billion) from domestic and
international markets through a follow-on public offer.

ICICI Bank’s GBP 350 million international bond offering marked the inaugural
deal in the sterling market from an Indian issuer and also the largest deal in
the sterling market from Asia.

Launched India’s first ever jewellery card in association with jewellery major
Gitanjali Group.
ICICI Bank became the first bank in India to launch a premium credit card --
The Visa Signature Credit Card.

The foundation stone for a regional hub in Gandhinagar, Gujarat was laid.

ICICI Bank introduced SME Toolkit, an online resource centre, to help small
and medium enterprises start, finance and grow their business.

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

ICICI Bank became the first private bank in India to offer both floating and
fixed rate on car loans, commercial vehicles loans, construction equipment
loans and professional equipment loans.

In a first-of-its-kind, nation wide initiative to attract bright graduate students
to pursue a careers in banking, ICICI Bank launched the "Probationary Officer

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, Russia.

2008: ICICI Bank enters USA, launches its first branch in New York

ICICI Bank enters Germany, opens its first branch in Frankfurt

ICICI Bank launched iMobile, a breakthrough innovation in banking where
practically all Internet banking transactions can now be done easily on the
mobile phone.

ICICI Bank concluded India's largest ever securitization transaction of a pool
of retail loan assets aggregating to Rs. 48.96 billion (equivalent of USD 1.21
billion) in a multi-tranche issue backed by four different asset categories. It is
also the largest deal in Asia (ex-Japan) in 2008 till date and the second
largest deal in Asia (ex-Japan and Australia) since the beginning of 2007.
ICICI Bank launches ICICIACTIVE-Banking Interactive Service - along with DISH
TV, which will allow viewers to see information about the Bank's products and
services and contact details on their DISH TV screens.

ICICI Bank and British Airways launch a co-branded credit card, 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

Business Banking:
➢ Corporate net banking
➢ Cash Management
➢ Trade services
➢ FXonline
➢ SME services
➢ Online taxes
➢ Custodial services


➢ 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.


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 non-probability 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.

Sample size
➢ This research selects 40 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.

Sampling plan:

✔ We are going to collect the data from the ATMS and also by visiting the bank.
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.

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, that is
personal interview with the aid of printed questionnaires.
Data Analysis:

Appropriate statistical analysis will be adopted. The data will be tabulated and

Statistical Tools Used:

The main statistical tools used for the collection and analyses of data in this project

• Questionnaire

• Pie Charts

• Bar Diagrams

Limitations of study:

Due to the following unavoidable and uncontrollable factors the factors, the
result might not be accurate. Some of the problems faced while conducting
the survey are as follows:-

• Time and cost constraints were also there.
• Chances of some biasness could not be eliminated.
• A Samples size of forty has been use due to time limitations.
• A majority of respondents show lack of cooperation and are biased
towards their own opinions.
H0: More number of customers are satisfied with the services of ICICI
H1: More number of customers are satisfied with the services of SBI.

The customers were asked on different parameters like Interest Rates provided
by their respective banks, Branch Visit Experience, Problem Solving Ability and
Online/Telephone services. We asked them to rank it accordingly what is the
most important of these and what decides their banking experience.

We asked 40 respondents in total, 20 from each bank and asked them to rank
these parameters according to their preference.
Interest Rate Branch Problem Online/Telephone
Provided Visit Solving Services

ICICI Bank20% 40% 30% 10%

SBI Bank 40% 20% 25% 15%

It was found out that while 20% of the customers of ICICI preferred interest rates
as top priority for choosing their bank as compared to 40% in SBI. Exactly the
same way branch visit, problem solving and online/telephone services are at
40,30 and 10 for ICICI and 20,25 and 15 for SBI respectively.

Branch Visit Satisfactory level:
1 2 3 4

40 40 20 0

20 30 40 10

1= Best

4= Worst

It was found out that while 40% of the customers of ICICI bank were extremely
satisfied with the branch visit experience as compare to 20% in SBI. Later 0% of
ICICI customers were dissatisfied whereas 10% found to be dissatisfied with SBI.
Problem solving experience:
1 2 3 4

40 30 20 10

30 35 20 15

40% of the ICICI customers were satisfied with the services provided by their
bank and 10% are dissatisfied. In SBI bank 30% of the customers are satisfied
and 15% are dissatisfied from the services provided by the bank.

Rates provided by the bank:
1 2 3 4

30 30 30 10

50 40 10 0
Interestingly 50% of the customers of SBI were extremely satisfied with the rates
provided by their bank as compare to 30% in ICICI bank. 0% were dissatisfied
with the rates of SBI as compare to 10% of ICICI.

Online/ telephone banking:
1 2 3 4

40 40 10 10

SBI BANK40 30 20 10

40% of both SBI and ICICI were found satisfied with online/ telephone banking
whereas 10% of both SBI and ICICI were found dissatisfied with the online
services. 40% of ICICI Bank were found to be some what satisfied with the
services as compared to SBI Bank at 30%.



Parameter Weigtage PerformanceWeightage Weightage (avg of
Score (Avg of 1)1)*Score D=B*C
(B) (C)

Interest rate 2 2 .80 1.6

Branch Visit 1 1.5 .40 .60

Online Services
4 1.5 1.60 2.4

Problem 3 1 1.20 1.20

AVG 2.5 1.5 1.45

State Bank of India

Parameter Weigtage PerformanceWeightage Weightage (avg of
Score (Avg of 1)1)*Score D=B*C
(B) (C)

Interest rate 1 1 0.40 0.40

Branch Visit 3 3 1.20 3.60

Online Services
4 1 1.60 1.60

Problem 2 2 0.80 1.60

AVG 2.5 2.33 1.80

A. Both the banks SBI and ICICI are in a real close situation when it comes to
customer satisfaction on the services they provide.
B. SBI scores high in the area of interest rates provided and that takes the
customer satisfaction index ahead of ICICI bank.

C. In terms of Branch visit experience ICICI has done a lot better than SBI.

D. Equal percentages of people were found to be satisfied with the online
services provided by their respective banks.

E. 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.

F. And many of the respondents are not aware of the many services rendered
by the ICICI bank. The few are deposit of cash in ATM, request for cheque
book in ATM, end of the day balance in mobile, etc.

 Since many of the respondents are not aware of the key services. The bank has
to take some initiatives.

 The bank can post a list of services that they are rendered to the customers
inside the bank Premises.

 And they can post demo of all these services in their bank website.

 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.

 State Bank Of India can concentrate on their Branches as they scored low on
this parameter. They need to improve the outlook of their bank.

 ICICI Bank can make their rates more competitive as SBI score the most here.
ICICI bank can look to attract more number of customers and also increase the
satisfaction level of their existing customer by taking care of this parameter.

There is a tough competition between both the banks and
scored differently on each of the different parameters.
Although the customer satisfaction index is real close for
both the banks but this time SBI has emerged as a leader
beating ICICI. Therefore we reject our null hypothesis and
accept alternate that the customers of SBI are more
satisfied with the services of their bank.

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

➢ Market Research Text Book
➢ S.P.Gupta Statistics Book.