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Research Report
A Comparative study of satisfaction level of Home Loan borrowers of
State Bank of India and ICICI Bank with special reference to Agra"

Submitted in the partial fulfillment for the

Award of degree of
Master of Business Administration (MBA)

SESSION 2016-17


Dr. Sandeep Verma Shubham Gupta
Assistant Professor MBA IV Sem.
Roll No.1500570096


(Affilated to Dr.A.P.J Abdul Kalam Technical University, Lucknow)

This research report is made by me during the 4th semester in partial fulfillment

of Master of Business Administration (M.B.A.) Students are essentially

required to conduct a research project work on the topic provided by the

related department of the institute. The idea behind it is to test acquired

knowledge through practical experience and to apply the theorical aspect of

management in the practical field.

This research report is on the study of A comparative study of satisfaction

level of Home Loan borrowers of State Bank of India and ICICI Bank.

It is my pleasure to be indebted to various people, most of which were experts in their respective

fields, who influenced my thinking, behaviour, and acts during the course of study.

As a fresher for the corporate, I was not having any idea about corporate culture. But I would

like to give special thanks to my project guide Dr. Sandeep Verma, who on behalf of his opulent

experience, told me about the basic of corporate and guided me which helped me to complete the

project efficiently and showed me the right path to reach the final destination with minimum

hicups and was always there with a helping hand in times of need throughout my project.

I am thankful to him for his support, cooperation, and motivation provided to me during the

completion of project.

Lastly, I would like to be thankful my father for their moral and financial support and my friend

with whom I shared my day-to-day experience and received lots of suggestions that improved

my work quality.



Roll No.1500570096


I Shubham Gupta do hereby declare that the project report titled A comparative

study of satisfaction level of Home Loan borrowers of State Bank of India

and ICICI Bank. is genuine research work under taken by me and it has not been

published any where earlier.

Roll No.1500570096



Research methodology

Analysis and Interpretation








Bank is a Latin word BANCO which is derived from Italy. The word bank means to

change the currency.

Another word bank derives from Germany Banck which means to secure the money

and establish for custody of money received from or on behalf of the customers.

A Bank is an establishment for custody of money received from or on behalf of its

customers. Its essential duty is to pay their drafts on it .Its profits arise from the of the money left

unemployed by them.

The Oxford English Dictionary.

The bank believes in environment of staff in all cadres of success in every aspect of work.

This involvement is sought to be brought about in such a way where by every staff member

derives satisfaction from his work and fulfils his desire to grow the institution.

Law of banking

Banking law is based on a contractual analysis of the relationship between the bank and

the customer. The definition of bank is given above, and the definition of customer is any person

for whom the bank agrees to conduct an account.

The law implies rights and obligations into this relationship as follows:

The bank account balance is the financial position between the bank and the customer,

when the account is in credit, the bank owes the balance to the customer, when the

account is overdrawn, the customer owes the balance to the bank.

The bank engages to pay the customer's cheques up to the amount standing to the credit

of the customer's account, plus any agreed overdraft limit.

The bank may not pay from the customer's account without a mandate from the customer,

e.g. a cheque drawn by the customer.

The bank engages to promptly collect the cheques deposited to the customer's account as

the customer's agent, and to credit the proceeds to the customer's account.

The bank has a right to combine the customer's accounts, since each account is just an

aspect of the same credit relationship.

The bank has a lien on cheques deposited to the customer's account, to the extent that the

customer is indebted to the bank.

The bank must not disclose the details of the transactions going through the customer's

account unless the customer consents, there is a public duty to disclose, the bank's

interests require it, or under compulsion of law.

The bank must not close a customer's account without reasonable notice to the customer,

because cheques are outstanding in the ordinary course of business for several days.

Entry regulation

Currently in most jurisdictions commercial banks are regulated by government entities

and require a special bank licence to operate.

The requirements for the issue of a bank licence vary between jurisdictions but typically


Minimum capital

Minimum capital ratio

'Fit and Proper' requirements for the bank's controllers, owners, directors, and/or senior


Approval of the bank's business plan as being sufficiently prudent and plausible.

Banks have influenced economies and politics for centuries. Historically, the primary

purpose of a bank was to provide loans to trading companies. Banks provided funds to allow

businesses to purchase inventory, and collected those funds back with interest when the goods

were sold. For centuries, the banking industry only dealt with businesses, not consumers.

Commercial lending today is a very intense activity, with banks carefully analysing the financial

condition of their business clients to determine the level of risk in each loan transaction. Banking

services have expanded to include services directed at individuals, and risk in these much smaller

transactions are pooled.


Many factor have influenced the banking structure in India. Among then are economic

crisis Constitutional authority &fiscal issue, during the colonial period very little money

circulated. The opening of English agency house which carried on banking business in addition

to their commercial &trading activities at Calcutta &Bombay in 18th & early 19th century marked

the beginning of banking on modern line in India.

The first joint stock established in India was in the bank of Hindustan, founded in 1770

by the famous English agency house of Messer Alexander& company. The need of the

organized banking system was felt very early in the 19 th century Bank of Bengal in Calcutta was

established in1806. After this two more banks were established, Bank of Bombay & Bank of
madras soon these three bank were amalgamated in 1921 & formed the Imperial bank of India

The Imperial bank of India functioned as a bankers bank & as well as bankers to Government

upto 1935 when, its function were transferred to Reserve Bank of India, which came in to

existence in the same year. There were so many banks at that time without moving any control.

The first fully Indian owned bank was the Allahabad Bank, which was established in

1865. The nationalization of Imperial bank of India took place &it was renamed as the State

Bank of India 19 July 1969. 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.

Growth and present status of Banking Industry


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

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 Nationalisation." She

nationalised the 14 largest commercial banks with effect from the midnight of July 19, 1969. A

second dose of nationalisation of 6 more commercial banks followed in 1980. After

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

average growth rate of the Indian economy.

In the early 1990s,government introduced a policy of liberalisation and gave licences to a

small number of private banks, which included banks such as Global Trust Bank 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,

Currently, India has 88 scheduled commercial banks (SCBs) - 28 public sector banks , 29 private

banks and 31 foreign banks. They have a combined network of over 66,000 branches and 32,000

ATMs. 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.

Year-on-year growth in bank credit was robust at 28% on top of 31.8% in the previous

year, while year-on-year deposit growth of scheduled commercial banks rose to 23% as against

18.1% in the previous year.

Commercial banks investments in bonds / debentures of public sector undertakings and

the private sector and in commercial paper (CP) registered an increase of Rs. 4,002 crores during

2007-08 in contrast to a decline of Rs. 13,237 crores in the previous year.

Commercial banks invested Rs. 74,706 crores in Government paper in contrast to a

decline of Rs. 22,809 crores in 2006-07.

Aggregate deposits of SCBs increased by 22.2 per cent (Rs.5,80,208 crore) during 2007-

08 as compared with 23.8 per cent (Rs.5,02,885 crore) in the previous year.

The total assets in the banking sector today is estimated to be at Rs 17 trillion and total

deposits are estimated at Rs 13 trillion.

c) Future of the banking industry

Banks have been able to finance the credit boom by managing their capital requirements,

and have a CRAR of 12% that is considerably higher than the 9% level stipulated by RBI. The

rapid growth prevailing in bank credit would necessitate further capitalization of banks.

The high degree of business optimism and continuing investment demand are pointers to

prospects of substantial growth in bank credit. The beyond performance of businesses has led to

significant increase in incomes of individuals and more employment avenues. Thus, the growth

prospects in retail segment are also expected to be high.

As per the schedule for implementation of Basel II provisions, foreign banks operating in

India and Indian banks having presence outside India.

In terms of ownership, debit cards are more in number than credit cards but in terms of

transactions, credit cards are used more than debit cards. Rural and semi-urban centres

account for 66% of total bank branches.

Bankable household India is anticipated to grow at a CAGR of 28.10% during 2007-


In future the retail banking industry in India is likely to reach a value of $300 billion by




State Bank of India

Type Public (BSE, NSE:SBI) & (LSE: SBID)

Founded Calcutta, 1806 (as Bank of Calcutta)
Headquarters Corporate Centre,
Madame Cama Road,

Mumbai 400 021 India

Key people Chairman Om Prakash Bhatt

Industry Insurance

Capital Markets and allied industries

Loans, Credit Cards, Savings, Investment vehicles, SBI Life
(Insurance) etc.
Revenue USD 22.4 billion (2015)
Total assets USD 255.9 billion (2015)
State Bank of India (SBI) (LSE: SBID) is a Public Sector Banking Organisation (PSB), in

which the Government of India is the biggest shareholder. It is the largest bank in India and is

ranked at 380 in 2008 Fortune Global 500 list, and ranked 219 in 2008 Forbes Global 2000.

Measured by the number of branch offices, SBI is the second largest bank in the world. SBI

traces its ancestry back to the Bank of Calcutta, which was established in 1806; this makes SBI

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.

In recent years the bank has focused on four priorities, first, reducing its huge staff through the

Golden handshake scheme known as the Voluntary Retirement Scheme, second, computerizing

its operations, third, implementation of Business Process Re-Engineering(BPR), and fourth,

trying to change the rude attitude of its staff through a program aptly named 'Parivartan' or

'change'. On the whole, the Bank has been successful in the first three initiatives but has failed in

After a 20 year hiatus, the Bank is recruiting 20000 clerks and 3500 officers. The pick of the

universities aspire to join the Bank and more than 2.5 million applications have been received.


Offices of the Bank of Bengal

1806: On June 2, the Bank of Calcutta was established.

1809: On January 2, the Bank of Calcutta changed its name to the Bank of Bengal.

1840: On April 15, the Bank of Bombay was established.

1843: On July 1, the Bank of Madras was established.

These three banks Bank of Bengal, Bank of Bombay, and Bank of Madras were known as

Presidency banks, were the result of royal charters, and were incorporated as joint stock


1861: The government passed the Paper Currency Act, limiting the right to issue paper

currency to the three Presidency banks, .

1921: On January 27, the government amalgamated the three Presidency banks to form

the Imperial Bank of India. 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 with respect to the issuing of


1955: On 30 April, the Parliament of India enacted the State Bank of India Act

authorizing the Reserve Bank of India (RBI), which is the central bank, to acquire a

controlling interest in the Imperial Bank of India. The RBI then took a 60% ownership

stake. On July 1, Imperial Bank of India became State Bank of India.

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

which enabled SBI 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.

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

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

shares, with a market value of over 355 billion rupees.

2008: 9 March 2008 State Bank of India on Sunday became the second bank in the world

to have 10,000 branches when Union Finance Minister P Chidambaram inaugurated its

latest branch at his native place Puduvayal.


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 10,000 branches[1] 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 all of its metropolitan, urban and semi-

urban branches under its Core Banking System(CBS), with over 10800+ branches being

incorporated. With this, 'SBI has become the largest bank in the world, covering 10800+ offices

on a single core banking platform. The bank has the largest ATM network in the country having

more than 8000+ ATMs[2]. 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 - 2008

In 2008 SBI was ranked 380 from a rank of 495 in 2007. As per fortune 500-2008 following are

the data for SBI in $ million.

Revenues: 22,402.2

Profits: 2,225.0

Assets: 255,854.9

Stockholders' Equity: 15,263.3

Group companies

SBI Capital Markets Ltd

SBI Mutual Fund (A Trust)

SBI Factors and Commercial Services Ltd


SBI Cards and Payment Services Pvt Ltd

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

SBI Funds Management Pvt Ltd

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. sbi



The State Bank of India, the countrys oldest Bank and a premier in terms of balance sheet size,

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

of Change and Transformation the two hundred year old Public sector behemoth is today

stirring out of its Public Sector legacy and moving with an agility to give the Private and Foreign

Banks a run for their money.

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

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

Acquisition, Advisory Services, structured products etc each one of these initiatives having a

huge potential for growth.

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

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

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

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

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

consolidating its global treasury operations and entering into structured products and derivative

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

of external commercial borrowings in the country. It is the only Indian bank to feature in the

Fortune 500 list.

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

processes to help improve the total customer experience. With about 8500 of its own 10000
branches and another 5100 branches of its Associate Banks already networked, today it offers the

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

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

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

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

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

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

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

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

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

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

capital for its growth and also consolidating its various holdings.

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

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

internal communication programme termed Parivartan the Bank rolled out over 3300 two day

workshops across the country and covered over 130,000 employees in a period of 100 days using

about 400 Trainers, to drive home the message of Change and inclusiveness. The workshops

fired the imagination of the employees with some other banks in India as well as other Public

Sector Organizations seeking to emulate the programme.

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

of India is undertaking, and has awarded the prestigious Indian of the Year Business, to its

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


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.

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, 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








Hong Kong


People's Republic of China

Republic of Maldives


South Africa

Sri Lanka

Sultanate of Oman

The Bahamas

United Arab Emirates



Subsidiaries and Joint Ventures

In addition to the foreign branches above, SBI has these wholly owned subsidiaries and joint


Nepal State Bank Limited is an Indo-Nepalese joint venture between State Bank of India,

the Employees Provident Fund, and the Agricultural Development Bank of Nepal. It

commenced operations on July 7, 1993, and now has 21 branches throughout Nepal.

SBI Mauritius is an offshore bank, incorporated in 1990.

Indian Ocean International Bank (Mauritius) has been operating in Mauritius since 1978.

SBI acquired a majority stake in the bank in April 2005. The bank is is a commercial

bank with 11 branches in major cities/towns in Mauritius, including Rodrigues.

SBI Canada has been operating for more than a decade and has a number of branches in

the Toronto and Vancouver areas.

State Bank of India established SBI California in 1982. The bank has six branches within

the state.


Retail Banking

Vehicle Finance

Priority Sector Lending

Wholesale Banking

Corporate Banking Division (CBD)

Treasury & Investment Division (TID)

Capital and Commodities Market Division (CCMD)

International Division (ID)

Investment Banking

Asset Management

Integrated Risk Management

Complaint redressal mechanism

Asset Liability Management

Human Resources / Industrial Relations

Information Technology
Retail Banking

Retail Banking Segment has shown substantial growth during the current financial year.

This has been achieved by adopting customer segmentation and mapping the products and

services to appropriate segments, to ensure delivery of value-added services.

On-line General Insurance policies and On-line Investment options in mutual funds are

some of the facilities now provided to the customers.

Vehicle Finance

Vehicle Finance Division (VFD) of Bank extends asset-backed financing for a wide range

of vehicles spanning across heavy commercial Vehicles, three wheelers, cars, two wheelers, etc.

Besides, specialty construction equipments like tippers, cranes, excavators, and loaders are also


The focus during the year was to optimize the product mix to maximize yields and at the

same time maintain portfolio quality.

VFD operations are efficiently supported by state-of-the-art document storage and

retrieval facility at Karapakkam unit that handles loan document processing and record


VFDs data centre, also located at Karappakam, has state-of-the-art facilities in terms of

data / equipment protection mechanisms and access rights with sensors to monitor movement

within the data centre.

Priority Sector Lending

Under this division, Bank has attained the RBI-prescribed target for total priority sector

advances. Under Priority Sector division bank mainly focuses on agriculturists, Small Road

Transport Operators and Individual Housing Loans etc.

Wholesale Banking

With the twin objectives of meeting growing market competition as well as improving

customer profitability, Bank has structured its wholesale banking operations into four vertical

business lines, consisting of four Strategic Business Units (SBUs), viz., Corporate Banking

Division, Capital & Commodities Market Division, Treasury & Investments Division and

International Division.

Corporate Banking Division (CBD)

The objective of the division is to service the full value chain of customer requirements.

The division offers a wide range of banking and finance solutions to derive the maximum value

and earnings from each customer. The aim is to build a holistic, long-term and mutually

beneficial relationship with its customers through cost-effective and efficient services, utilising

technology solutions.

Treasury & Investment Division (TID)

Bank has a fully integrated Dealing Room that redefined its focus from market segment-

based to function-based. This measure has started yielding results as functional expertise across

various markets has been put to optimal use.

The TID has three distinct functional segments

Corporate Desk, catering to the needs of customers and branches

Trading Desk, engaged in trading in Foreign Exchange, Fixed Income, Derivatives and

Capital Markets

Balance Sheet Desk, managing the liquidity, ALM functions and resources to meet

statutory requirements of maintaining of CRR / SLR.

Capital and Commodities Market Division (CCMD)

Banks Fort (Mumbai) Branch focuses on serving Capital and Commodities market

players, and is the nodal branch for this business line. Bank has the Clearing and Settlement

Bank status with five principal stock and commodity exchanges of the country viz. NSE, BSE,

NCDEX, MCX and NMCE. Besides, Bank is an empanelled Depository Participant for NSDL

and CDSL and is also empanelled with NCDEX and MCX, thereby offering DP services to both

securities and commodities segments, a distinction shared by only a few select banks in the


Bank is offering e-broking through Payment Gateway technology with select brokers to

facilitate provision of three-in-one account facility to the retail investors and to enable them to

undertake on-line trading in equity market.

Bank has also concluded arrangement with ten leading mutual funds offering direct

credit facility for redemption and income distribution.

Bank is also registered as a Debenture Trustee for providing this service to corporate


International Division (ID)

The International Division of your Bank covers all cross-border business flows of the

Bank. Your Bank has correspondent relationships with 332 banks spread across the globe.

There are tie-up arrangements with 16 Exchange Houses under Rupee Drawing

Arrangement and with two Money Transfer companies as principal agents under Money Transfer

Service Scheme. The Bank is in the process of appointing sub-agents to increase the volumes

through partnership with other domestic banks and financial institutions.

To enhance overseas business and leverage NRI relationships, the Bank has adopted the

Regional Alliance model of partnering with strong regional overseas banks that do not have

branch presence in India. During the year, alliances were established with two banks having

coverage in United Arab Emirates and Qatar. Bank proposes to establish similar alliances in

other geographical regions like South East Asia, United Kingdom, the United States, etc.

Investment Banking

During the year, the Investment Banking Division worked on a number of assignments in

the areas of financial and corporate advisory services, equity placements, cross border

transactions, debt restructuring, equity syndication, etc. Among the various assignments

completed by this Division was the advising of Hinduja TMT Ltd. on divesting its stake in

Hutchison Essar Ltd., a transaction worth USD 450 million.

In the years to come, the Investment Banking Division would leverage on its alliances

with European and US-based investment banks in the execution of cross border deals.

Asset Management

Bank has continued its past trend of recoveries. During the year, recoveries / upgrading

of written off / non-performing assets (NPA) amounted to Rs.158.89 crores. Besides, NPAs
worth Rs.49.17 crores (Net Book Value) were sold off during the year to an Asset Reconstruction


Due to these efforts, Net NPAs were restricted to 2.47% of Net Bank Credit as compared

to 2.09% in the previous year. But for classification as NPA of one major account, which is not

an NPA with other Banks, the percentage of net NPAs would have been still lower at 1.46%.

Integrated Risk Management

A strong enterprise-wide risk management framework is a cornerstone of prudent

banking. It facilitates management of various risks while supporting rapid business growth, helps

reduce volatility in earnings and enhances shareholder value.

Bank, with the assistance of KPMG, a leading international consultant, has established

an integrated Risk Management Department responsible for Bank-wide risk management

covering credit risk, market risk and operational risk, independent of the business segments.

Bank has been progressively adopting the best international practices so as to continually

reinforce its risk management functions.

Complaint redressal mechanism

Bank has designed an escalation process for all customer complaints received at

Branches and Corporate office. A quarterly report is placed to the Board of Directors on the

complaints handled. Bank maintains a dedicated page for lodging of complaints and complaint

redressal mechanism on its website where information on the escalation process
and the details of the nodal officer to receive complaints has been furnished. These details are

also displayed at the Banks Branches.

Asset Liability Management

Banks ALM system supports effective management of liquidity risk and interest rate

risk, covering 100% of its assets and liabilities. Liquidity Risk is monitored through Structural

Liquidity Gaps, Dynamic Liquidity position, Liquidity Ratios Analysis and Behavioral Analysis,

with prudential limits for negative gaps in various time buckets.

Human Resources / Industrial Relations

The Human Resources (HR) functions focus was on ensuring employee satisfaction and

retention by creating a performance enabling work culture within the organization. With this goal

in mind, your Bank has made substantial progress in all facets of HR.

Manpower strength increased during the year from 2365 to 2613. Manpower was added

in an efficient and time-bound manner with a keen eye on candidate quality. Bank broad-based

its recruitment sources with a view to reducing hiring costs and bringing down turnaround time.

A judicious mix of placement consultants, job portals, employee referrals and campus

recruitments ensured hiring costs were kept to a minimum. The employee referral scheme Indus

Parichay in particular deserves mention. Not only has this scheme given us quality employees

who fit in perfectly with the work ethos but it has also contributed in substantially bringing down

recruitment costs.

Bank has increased emphasis on bringing contemporary skills to the organization

through its training and development activities. Bank is continuously assessing the learning gaps
amongst its employees and is trying to bridge the learning gaps by organizing training programs

to develop the technical and behavioral competencies of its employees.

Information Technology

The Banks technology infrastructure has been among the best in the Indian Banking

Industry. This recognition has been endorsed by the industry peers with State Bank of India

being conferred with the Runner-Up Award for Best Implementation of Straight Through

Processing, an Award sponsored by Indian Banks Association (IBA) jointly with Trade Fair

Conferences International (TFCI) and Finacle (Infosys). This is the second consecutive year

that your Bank has won the IBA Award.

The Banks successful Mock Disaster Drills to test the DR preparedness of core banking

application exhibits the robustness of the systems and services provided to its customers. A

notable achievement during these mock drills was that the branches with MPLS and VSAT links

were switched to DR site without routing through Mumbai. This is significant in a centralized

environment, as even in a scenario of site disaster at Mumbai, branches can operate without any

disruption. The DR infrastructure for Base24 Switch has been commissioned and the Production

ATM Switch was upgraded during the year.

Several other IT initiatives for facilitating customer convenience have been undertaken

during the year. For example, Mobile Banking initiatives help a customer track balances and

transactions The Bank is now ready to offer a new convenient channel for its customer contact

center with Computer Telephony Interface (CTI) with Operational CRM Application (Talisma)

which is interfaced with the banks core systems.

Bank has enabled online remittances from correspondent banks abroad, which facilitates

online movement of funds across banks. Several products and services like Mobile Banking, Visa
Gold Debit card, Gift Card, On-line issuance of insurance policies, Sunday Banking, 8-to-8

banking, etc. have all been deployed with the help of technology.



Central Board of State Bank of India

(As on 24th June 2008)

Sr. No. Name of Director Sec. of SBI Act, 1955

Shri O.P. Bhatt
1. 19(a)
Shri S.K. Bhattacharyya
2. 19(b)
3. Shri Suman Kumar Bery 19(c)
4. Dr. Ashok Jhunjhunwala 19(c)
5. Shri Dileep C. Choksi 19(c)
6. Shri S. Venkatachalam 19(c)
7. Dr. Deva Nand Balodhi 19(d)
8. Prof. Mohd. Salahuddin Ansari 19(d)
9. Dr.(Mrs.) Vasantha Bharucha 19(d)
10. Shri Arun Ramanathan 19(e)
11. Smt. Shyamala Gopinath 19(f)


Working Capital Finance

SBI offers working capital finance to meet the entire range of short-term fund requirements that

arise within a corporates day-to-day operational cycle.

The SBI working capital loans can help your company in financing inventories, managing

internal cash flows, supporting supply chains, funding production and marketing operations,

providing cash support to business expansion and carrying current assets.

SBIs working finance products comprise a spectrum of funded and non-funded facilities ranging

from cash credit to structured loans, to meet the different demands from all segments of industry,

trade and the services sector. Funded facilities include cash credit, demand loan and bill

discounting. Demand loans are considered also under the FCNR (B) scheme. Non-funded

instruments comprise letters of credit (inland and overseas) as well as bank guarantees

(performance and financial) to cover advance payments, bid bonds etc.

Project Finance

The SBI has formed a dedicated Project Finance Strategic Business Unit to assess credit

proposals from and extend term loans for large industrial and infrastructure projects. Apart from

this, project term loans for medium sized projects and smaller clients are delivered through the

CAG and the NBG.

In general, project finance covers greenfield industrial projects, capacity expansion at existing

manufacturing units, construction ventures or other infrastructure projects. Capital intensive

business expansion and diversification as well as replacement of equipment may be financed

through the project term loans.

Project finance is quite often channeled through special purpose vehicles and arranged against

the future cash streams to emerge from the project.

The loans are approved on the basis of strong in-house appraisal of the cost and viability of the

ventures as well as the credit standing of promoters.

Deffered Payment Gaurantees

Q. What is the SBI deferred payment guarantee?

SBI can extend deferred payment guarantees to industrial projects for obtaining imported

equipment. The DPG is a standby credit guaranteeing deferred payments, usually for payments

for capital goods, turnkey contracts etc.

Corporate Term Loan

The SBI corporate term loans can support your company in funding ongoing business expansion,

repaying high cost debt, technology upgradation, R&D expenditure, leveraging specific cash

streams that accrue into your company, implementing early retirement schemes and

supplementing working capital.

Corporate term loans can be structured under the FCNR (B) scheme as well, with the option of

switching the currency denomination at the end of interest periods. This will help you take

advantage of global interest rate trends vis--vis domestic rates to minimize your debt cost.

The banks corporate term loans are generally available for tenors from three to five years,

synchronized with your specific needs.

SBI corporate term loans may carry fixed or floating rates, as befits the exact requirement of the

client and the risk context. Again, these rates will be linked to the banks prime lending rate.

SBI corporate term loans can have a bullet or periodic repayment schedule, as required by the

client. The repayment mode may be linked to the cash accruals of the company.

The Banks expert credit crew gauges the applicants particular fund requirements and evaluates

the companys credit worthiness, factoring in the cash flows generated by it.

Structured Finance

SBI structured finance involves assembling unique credit configurations to meet the complex

fund requirements of large industrial and infrastructure projects. Structured finance can be a

combination of funded and non-funded facilities as well as other credit enhancement tools, lease

contracts for instance, to fit the multi-layer financial requirements of large and long-gestation


Q. What is the SBI advantage in structured finance?

Being Indias largest bank and with the rich experience that it brings with it, SBI commands

formidable expertise in engineering financial packages that address complex requirements with

minimum risk.

Further, SBI has firm relationships across the financial map of the world, which can be leveraged

to structure solutions that may necessitate the participation of several credit agencies.

Dealer Financing

SBI extends financial support to the corporate distribution networks, by providing both working

capital finance and term loans to select dealers of identified companies. This gives dealers to

leverage their business relationship with major corporates to avail low cost credit. Also, this type
of financial solutions allows the corporate negotiate a better price with dealers. Dealer financing

may be extended in the bill discounting form or simply as cash credit.

Channel Financing

Channel financing is an innovative finance mechanism by which the bank meets the various fund

necessities along your supply chain at the suppliers end itself, thus helping you sustain a

seamless business flow along the arteries of the enterprise.

Channel finance ensures the immediate realization of sales proceeds for the SBI clients supplier,

making it practically a cash sale. On the other hand, the corporate gets credit for a duration

equaling the tenor of the loan, enabling smoother liquidity management.

SBI has the worlds largest banking network of over 9,000 branches and this enables it to deliver

the financial solution at your suppliers doorsteps, across the span of the country.

Equipment Leasing

The SBIs has deployed a dedicated Strategic Business Unit for lease financing that is richly

experienced in arranging lease contracts for procuring expensive equipment for your project or

plant. At SBI, we arrange lease agreements as stand alone contracts or as part of a structured


Loan Syndication

The SBI leverages its vast network of relationships to arrange syndicated credit products for

corporate clients and industrial projects.

With its rich experience and strong reputation, SBIs syndication desk can assemble large loan

packages involving a ring of reputed financial entities, domestic and international, that match the

large credit requirements of infrastructure projects.


Transport Plus


To finance new trucks/tankers/trailers/tippers/luxury buses including take over of existing similar

loans from other banks/institutions.


Profit making Corporates/Non-corporates (surface transport operators) owning more than 10

well-maintained vehicles (including the proposed).

Quantum of finance

Minimum Rs. 10 lacs and maximum Rs. 10 crores.


Term Loan: Maximum 5 years.

Repayment will be in Equated Monthly Installments (EMI), starting two months after

disbursement. Cash Credit: Repayable on demand, renewal every year.

EMI Calculator



Eligible amount of finance

Term Loan: 100 % of the cost of the chassis, inclusive of excise duty. Other expenses are to be

borne by the borrower. Where body building is not required, 80 % of the cost of the vehicle will

be financed. An additional Term Loan limit, subject to a maximum of 20% of the original limit

may be sanctioned for repair of the vehicle, on or after the 3rd year if the loan account is regular.
Cash Credit : 80% of receivables.


Term Loan: Maximum 1% p.a. on the pre-paid amount, for the residual period.

Rate of Interest

For Term loans, 8.50% p.a. with monthly rests and for Cash Credit, 11.75% p.a. with monthly



Primary: Hypothecation of vehicles financed as well as book debts.Collateral :

i) At least 50% of the loan amount

ii) Personal guarantee of promoters and two third-party guarantors.


As per Banks guidelines.


Metro/urban/semi-urban centers

Bill Finance

The banks bill finance product helps you bridge the fund gap between the date of sale of

products to the receipt of payments.

The bank purchases the bill of exchange your company receives against a product sale, at a

discount, thus doing away with the delay in realizing the receivables.
The extent of discounting would amount to the interest calculated till the payments for the

original sale are realized, and will be determined on the basis of market interest rates as well as

the credit rating of the borrower.

Cash Credit for Traders

SBI cash credit can be in the form of a running account, similar to an overdraft secured by a

charge on current assets, that meets the frequent cash requirements of your trading cycle.

Term Loan for Asset Aquisition

The specialized product has been designed to help you purchase plant, machinery, land or other

physical assets required during the growth and expansion of the your company.

Letters of Credit

The SBI offers Letters of Credit to facilitates your purchases of goods in trading operations, both

domestic and international. Backed by the SBIs strong reputation, you will be able to build

better trust in trade and forge business relationships faster.

The banks vast network of branches and correspondent banks enables your enterprise to sustain

a seamless flow of business on a wide platform.

Further, the banks informed trade finance crew can provide you with sophisticated credit and

trade information and market knowledge, helping you extract more value from business.

Bank Gaurantees

The SBI guarantees the creditworthiness or the business capacity of its clients through its

financial and performance guarantees.

Cash Management Product

The bank offers a totally technology-driven cash management product, based on the satellite-

linked SBI FAST (for Funds Available in the Shortest Time) platform that connects 120 centers

spread across the country. Your cash collections can be pooled at these centers at competitive


Further, your cost centers at various locations can have a daily limit with the SBIs local branch

which can be swept automatically into your main account located at your corporate center.

The SBI is planning to raise the number of its cash management centers to 500, which then

would cover 90 per cent the banks corporate clients financial transactions.

Q. What are the benefits of the SBI cash management product?

The cash management solution ensures a comfortable liquidity position within your corporation

always and will significantly bring down transaction time and cost. Further, the quicker, more

efficient and better-controlled cash circulation can actually create profit opportunities for the


The company will be better placed to forecast its cash positions and schedule related financial

transactions accordingly.

Channel Financing

Channel financing is an innovative finance mechanism by which the bank meets the various fund

necessities along your supply chain at the suppliers end itself, thus helping you sustain a

seamless business flow along the arteries of the enterprise.

Channel finance ensures the immediate realization of sales proceeds for the SBI clients supplier,

making it practically a cash sale. On the other hand, the corporate gets credit for a duration

equaling the tenor of the loan, enabling smoother liquidity management.

SBI has the worlds largest banking network of over 9,000 branches and this enables it to deliver

the financial solution at your suppliers doorsteps, across the span of the country.


SBI 1,955 22.7%
ICICI Bank 631 7.3%
Canara Bank 476 5.5%
PNB 472 5.5%
Bank of India 458 5.3%
Bank of Baroda 356 4.1%
HDFC Bank 177 2.1%
Total 4,687 54.4%

The fact that the top 8 banks account for barely 54 per cent of the market share suggests

that several smaller players occupy the remaining 46 per cent.

It is here that the foreign players see the 'opportunity'. Although the smaller players

together account for a reasonable share, most of them are undercapitalized, on a standalone basis.

The need to cater to the burgeoning credit demand also calls for additional capital

requirement, for which their foreign counterparts can come to the rescue of the smaller Indian


Also, since the new foreign players will not be allowed to expand freely, the ones taking

the subsidiary route for expansion will not be subjected to rural branch norms (24 per cent of

branches to be set up in rural areas) as well as priority sector lending requirement (35 per cent).

They can thus concentrate their focus on the lucrative urban markets.

ICICI limited was founded by government of India, World Bank and representatives of

private industry on January 5,1955. ICICl's principal business activities includes medium term

and long term project financing for the infrastructure and manufacturing sectors' corporate

finance to meet the treasury requirements of Indian companies, lease finance as well as a

comprehensive range of financial services. For regulatory and strategic reasons, ICICI set up

specialized subsidiaries in the areas of commercial banking, investment banking non banking

finance investor services brooking venture capital financing and state level infrastructure


ICICI provides finance in form of rupee and foreign currency loans, underwriting and

direct and subscription to issues of shares and debentures and guarantees to suppliers of

equipment and foreign lenders. It provides financial assistance to a large no of industrial sectors

including cement, chemicals electronics, fertilizers, food processing, iron and steel, man-made

fibbers, metal products, textiles and transport equipment. ICICI subsidiaries and group

companies includes:

ICICI Banks ltd.

ICICI Securities and Finance Company ltd.

ICICI Brokerage Services ltd

ICICI Capital ltd.

ICICI Personal Financial Services ltd.

ICICI Infotech Services ltd

ICICI Venture Funds Management Company ltd.

ICICI International ltd.


ICICI West Bengal Infrastructure Development Corporation ltd.

ICICI Realty ltd.

ICICI Properties ltd.

ICICI Real Estate Compo ltd.

ICICI Home Finance Compo ltd.

ICICI Trusteeship Services ltd.

ICICI Knowledge Park.

ICICI Web Trade ltd.

ICICI Investment Management Compo ltd.

ICICI Payments ltd.

ICICI Infotech Inc.

ICICI Prudential Life Insurance Compo ltd

Ivory International Inc.

ICICI Securities Holdings Inc

ICICI Securities Inc.

ICICI Eco-Net ltd.

ICICI Infotech Pte. ltd.

ICICI Lombard General Insurance Compo ltd.

ICICI Global Opportunities Fund, LLC.


ICICI's development activities have encompassed such diverse areas as technology

financing, science parks, rural development, vocational training/skill development for the
handicapped, education of the under privileged and health care for the weaker sections of the

society. Some specialized institutions for these development activities

HDFC India's first housing finance provider.

CRISIL India's first credit rating agency.

The OTCEI India's first screen based.


ICICI meets its financial requirements through borrowings, equity and equity linked offering in

the domestic and internal markets, from loan repayments and interest payments and through

internally generated funds

RUPEES RESOURCES ICICI raises rupees funds through issues of bonds, convertible

debentures and other borrowing from a range of investors, including banks, investment

institutions, public sector units, port trust, quasi-government provident funds (employees

schemes) bodies corporate & the household sector.

FOREIGN CURRENCY BORROWINGS- ICICI has raised foreign currency

resources from multilateral institutions, official bilateral sources (including export credit)

and from commercial sources.


foreign currency borrowings have been from multilateral institutions and guaranteed by

the government of India. ICICI has obtained lines of credit from world bank directly or

through the government of India and Asian Development Bank(ADB). Bilateral

Borrowings, ICICI has obtained lines of credit from Kreditanstalt furwiederaufbau,

Commonwealth Development corporation of the united Kingdom, several export credit

agencies, overseas development administration of the united Kingdom through the

government of India and from Japan Bank for international Co-operation, Japan.

COMMERCIAL BORROWINGS- ICICI has raised its commercial borrowing in form

of Euro credits and loans, floating and fixed rate bond issues, private placement and

Euro-commercial paper programs backed by a note issuance facility.

ICICI has diversified its liabilities by borrowings in various markets in US

Dollars, Deutsche Marks, Swiss Francs, Japanese Yen, Pounds Sterling and ECUs.

CAPITAL ADEQUACY -ICICI is subject to the capital adequacy requirements of RBI,

which requires a minimum total capital adequacy ratio 90/0 of which at least 4.5% must

be Tier 1 capital. Tierl capital comprises paid-up capital and free reserves.

SHARE HOLDING PATTERN ICICl's major share holders are financial institutions,

such as the life insurance corporation of India (LIC) General Insurance corporation (GIC)

and its subsidiaries, Unit Trust of India and other financial Institutions.


ICICl's objective is to enhance its position as India's premier financial services provider. The key

element of ICICl's business strategy is to:

*focus on quality growth opportunities by:

maintaining and enhancing strengths in corporate banking;

Building a strong retail franchisee;

* emphasize conservative risk management practices. and enhanced asset quality;

*use technology for competitive advantages; and

*attract and retain talented professionals.

Stages in buying various ICICI products :-

Perceive wants of financial product through the advertising or any other sources.

Information search about competitive institution, returns service and after sales.

Sources of information

Printed media Visual media Personal media




U. T.I.



ICICI has been chosen of goodwill and additional features like

better returns, better options of investment etc.

Satisfaction after investing in ICICI product and then purchase and further suggest to buy the

various products of the same organization.

Buying Behaviour:

Consume decision making varies with the types of the buying decision. The decision to

buy any financial product is quit different from buying any other product. There are four types of

buying behavior.

Complex Buying Behaviour:

Consumer engages in complex buying behavior when they are highly involved in

purchase and aware of significant difference among brands. This usually the case when

the product is expensive bought infrequently, risky and highly self expressive. For

example, a person buying a personal computer may not know what attributes to look for

many of the product features carry no meaning unless the buyer has done some research

16 K memory, disk storage, screen resolution and so on.

High involvement Low involvement

Significant Difference Variety Seeking Buying Complex Buying Between
Behavior Brands Behavior
Few Difference Between Dissonance-Reducing Habitual Buying
Brands Buying Behavior Behavior

Four types of Buying Behavior--:

2. Dissonance Reducing Buving Behavior:

Sometimes the consumer is highly involved in a purchase but sees little difference in the

brands. The high involvement based on the fact that purchase is expensive, infrequent and risky-
In this case, the buyer will shop around to learn what is available but will buy fairly quickly. For

example carpet.

3. Habitual Buying Behavior:

Many products are bought under condition of low consumer involvement and the absence

of significant brand differences. Like salt. Consumer have little involvement in this product

category. They go to the store and reach for the brand. If they keep reaching for the same brand,

It is out of habit, not strong brand loyalty. There is good evidence that consumer have low

involvement with most low cost, frequently purchased products.

4. Variety Seeking Buying Behaviour:

Some buying situations are characterized by low consumer involvement but significant

brand differences are consumers often do a lot of brand switching.

Market segmentation:

Market segmentation is defined as " the process of taking the total heterogeneous market

for a product and dividing it into several sub markets or segments, each of which tends to be

homogeneous in all significant".

Criteria for successful segmentation:

Substantiality refers to the size of segmented markets. Segments must be large enough to

permit viable market effort directed towards them.

Measurability of the segment means that it must be capable of measuring the changing

behavior patterns of consumers.

Accessibility means the segments must permit the firm to direct successfully different

marketing effort toward the segments.

Represent ability that is the segments must be representative in nature and must have

individually of their own.

Nature of demand refers to the different qualities demanded by various segments.

Responses rates means that the segments must shoiw differences in responses to the

marketing variables.

Benefits of Segmentation:

The manufacturer is in the better position to find out and compare the marketing

potentialities of his products. He is able to judge product acceptance or assess the

resistance to his product.

The result obtained from market segmentation is an indicator to adjust the production,

using men, material and other resources in a most profitable manner.

Changes required may be studied and implemented without losing market. As such as

soon as the product becomes obsolete, or even earlier, the product line could be

diversified or even discontinued.

It helps in determining the kinds of promotional dives that are effective and also helps to

evaluate their results.

Appropriate timing for the introduction of new products, advertising, etc., could be easily


Methods of Segmenting Markets:

The segments fall between two extremes of total homogeneity and heterogeneity. The various

segments are shown below:

Geographic Segmentation

Age group
Demographic Segmentation Family

Life cycle


Socio -Economic Segmentation

Product Segmentation

Benefit Segmentation

Volume Segmentation

Marketing -Factor Segmentations

Market Segmentation for ICICI Products:

The market segmented on the three basis that is :

Customer based segmentation

Product related segmentation

Competition based segmentation

Under the customer based segmentation again the two classification there are there that is

Geographic location of customer and demographic characteristics. The geographic location of

customers are divided in three categories that is :Rural location, Urban location, Semi-Urban


In demographic characteristics the factor are age, sex, income, occupation education and

family size & structure.

Age: Under the age groups, ICICI do not have any concern to infant market and it have

totally concern for youth market (20-35 years), middle aged market (36-50 years) & elder

senior market (50&Above).

Sex: It is not much important for ICICI except in case, the investor is differentiated as male and


Income: ICICI is concerned only for middle Income, upper middle income and higher income.

Middle-income people involves as government servicemen, self-employed in middle and lower

level management in private concern. Upper middle income involves the person who luxuries

product like air travel holidays special places and etc. Higher income group involves

businessmen exporters and higher-level executives.

Occupation: Occupation involve the category through the person earns i.e. a self employed,

professionals, traders, servicemen and etc.

Education: Education part is much important here. The more the customer is educated the more

will be his awareness for new technology or would like to get aware of new things.

Family size & structure: The family size also effects the investment planning of the investor It

have a iverse relation mwith the investment i.e. the large will be the family the less will be the

investment and vice-versa.

Now the another factor is Product related segment, which involves the various products of ICICI.

The products are Bonds, Fixed Deposits, Demat A/C, RBI Relief Bonds and Mutual Fund. These

products are already been explained so many times.

The last factor is competition based segment which involves the classification on the basis of

the custimer loyalty. The customers are classified as under:

Hard core loyals: These are customer who are completely devote to a single brand.

Soft core loyals: These are the customer who are loyal to more than two brands.
Switcher overs: These are the customers who easily switch oveer to the next brand by

considering only two three positive facctors.

Savings Bank Account

How to Open an Account ?

Download or obtain Account Opening Form from the nearest branch, fill it up properly and

deposit the same with the branch of your choice along with the following :-

Furnish proof of Residence (In the form of a copy of Ration Card/ Passport/ Driving

Licence/ Electricity Bill/ Telephone Bill/ Identity Card issued by any reputed institution.

ORIGINALS be shown only at the time of scrutiny of papers)/ Business address.

Furnish 2 photographs of all the prospective account holder(s).

Introduction about you from a person known to the bank preferably by an Account

Holder of the Branch, whose account has run satisfactorily at least for the past six


Furnish PAN or declaration of Form No. 60 / 61 as the case may be.

Minimum deposits.


Resident Foreign Currency (Domestic) Account (RFCD)

Resident Indians are permitted to open, hold and maintain Resident Foreign Currency

(Domestic) Account out of foreign exchange acquired in the form of currency notes, bank

notes, travelers cheques and out of, foreign exchange earned and/or gifts received from close
relatives (as defined in the Companies Act) and repatriated to India through normal banking

channels by resident individuals. Foreign exchange earnings could be through export of goods

and/or services, royalty, honorarium, etc.

Opening, holding and maintaining a Resident Foreign Currency (Domestic) Account

Resident Foreign Currency (Domestic) Account can be opened with designated ICICI

Bank branches in India.

Accountholders can deposit foreign exchange earnings repatriated to India through

banking channels. The earnings could be out of export of goods and/or services, royalty,

honorarium etc.

Resident Foreign Currency (Domestic) Account can also be opened/credited with

currency notes, bank notes and travellers cheques

Account holder can credit Resident Foreign Currency Account (Domestic) with foreign

currency :

saved from an individual's trip outside India,

received as honorarium during an individual's trip outside India

received as gift from persons on visit to India, and

received from a person on a visit to India for services rendered to him in India.

received as sales proceeds of sponsored ADRs/GDRs which have approval of

Foreign Investment Promotion Board (FIPB)

These accounts are not interest bearing

There is no ceiling on the balances that can be built up in these accounts.

The balances held in these accounts can be used for any purpose for which foreign

exchange can be bought from a bank in India.

Permissible currencies for opening Resident Foreign Currency (Domestic) Account

Pound Sterling (GBP)

US Dollar (USD)

Japanese Yen and (JPY)


Please note:

Deposit in multiple currencies in a single account is not permitted. Account can be

opened in only one currency.

An individual is permitted to maintain multiple accounts.

Operating the account

Account holders will be issued the following instruments for transacting in the account:

a. Foreign Currency Cheque Book for international transactions

b. Cash withdrawal slip for Rupee withdrawals across the counter. During a day accountholder

cannot withdraw more that USD 2000 or equivalent in permissible foreign currency, from RFC

(D) account. There is no restriction on cash withdrawals in INR

c. Pay-in slip book for deposits into the account

Other benefits

Nomination Facility is available on RFC(D) Accounts, if opened in single name.

Statement of accounts on quarterly basis will be sent to the depositors.

Purposes for which resident Indian can buy foreign exchange from a bank in India

A Resident Indian, can buy foreign exchange without permission from the Reserve Bank of India


Private Travel

Resident Indian can avail of foreign exchange upto US$ 10,000 in any calendar year for

tourism or private travel to any country other than Nepal and Bhutan on the basis of self-


Study Abroad

Resident Indian can buy foreign exchange upto US$ 30,000 or upto the estimate from the

institution abroad, whichever is higher, per academic year on the basis of simple

documentary evidence indicating the requirement.

Medical Treatment

Resident Indian can buy foreign exchange on the basis of self-certification, upto US$

50,000 to meet the expenses for medical treatment outside India. Banks are also

permitted to release exchange required in excess of US$ 50,000, on the basis of estimate

from a doctor or hospital in India or overseas.

Resident Indian can also buy foreign exchange upto US$ 25,000 per person for meeting

boarding/lodging/travel expenses of the patient and also the accompanying attendant on


Employment Abroad

Resident Indian can buy foreign exchange upto US$ 5,000 on production of letter of


Resident Indian can buy foreign exchange upto US$ 5,000, or amount prescribed by

country of emigration on the basis of emigration visa.

Remittance for Miscellaneous Purposes upto US$ 500

Resident Indian can remit foreign exchange outside India upto US$ 500, for

miscellaneous purposes, without production of any document provided the rupee

equivalent is paid by debit to your account, cheque or by demand draft.

Gifts and Donations

Resident Indian can gift/donate upto US$ 5,000 every year on self-certification.

Foreign Exchange/TCs can be purchased

From all designated branches of ICICI Bank. If the rupee equivalent exceeds Rs.50,

000/-, the entire payment has to be made by way of a crossed cheque/banker's cheque/pay

order/demand draft only.

How to open Resident Foreign Currency (Domestic) Account

Fill in Resident Foreign Currency (Domestic) Account application form. Application

forms are available at all designated branches of ICICI Bank.

Submit duly filled application form with any designated branch of ICICI Bank.


Sales promotion is one of the four aspects of promotional mix. (The other three parts of the

promotional mix are advertising, personal selling, and publicity/public relations.) Media and non-media
marketing communication are employed for a pre-determined, limited time to increase consumer

demand, stimulate market demand or improve product availability. Examples include:


point of purchase displays


free travel, such as free flights

Sales promotions can be directed at either the customer, sales staff, or distribution channel

members (such as retailers). Sales promotions targeted at the consumer are called consumer sales

promotions. Sales promotions targeted at retailers and wholesale are called trade sales

promotions. Some sale promotions, particularly ones with unusual methods, are considered

gimmick by many.

Consumer sales promotion techniques

Price deal: A temporary reduction in the price, such as happy hour

Loyal Reward Program: Consumers collect points, miles, or credits for purchases and

redeem them for rewards. Two famous examples are Pepsi Stuff and Advantage.

Cents-off deal: Offers a brand at a lower price. Price reduction may be a percentage

marked on the package.

Price-pack deal: The packaging offers a consumer a certain percentage more of the

product for the same price (for example, 25 percent extra).

Coupons: coupons have become a standard mechanism for sales promotions.

loss leader: the price of a popular product is temporarily reduced in order to stimulate

other profitable sales

Free-standing insert (FSI): A coupon bot is inserted into the local newspaper for delivery.

On-shelf couponing: Coupons are present at the shelf where the product is available.

Checkout dispensers: On checkout the customer is given a coupon based on products


On-line couponing: Coupons are available on line. Consumers print them out and take

them to the store.

Mobile couponing: Coupons are available on a mobile phone. Consumers show the offer

on a mobile phone to a salesperson for redemption.

Online interactive promotion game: Consumers play an interactive game associated with

the promoted product. See an example of the Interactive Internet Ad for tomato ketchup.

Rebates: Consumers are offered money back if the receipt and barcode are mailed to the


Contests/sweepstakes/games: The consumer is automatically entered into the event by

purchasing the product.

Point-of-sale displays:

Aisle interrupter: A sign the juts into the aisle from the shelf.

Dangler: A sign that sways when a consumer walks by it.

Dump bin: A bin full of products dumped inside.

Glorifier: A small stage that elevates a product above other products.

Wobbler: A sign that jiggles.

Lipstick Board: A board on which messages are written in crayon.

Necker: A coupon placed on the 'neck' of a bottle.

YES unit: "your extra salesperson" is a pull-out fact sheet.

Trade sales promotion techniques

Trade allowances: short term incentive offered to induce a retailer to stock up on a


Dealer loader: An incentive given to induce a retailer to purchase and display a product.

Trade contest: A contest to reward retailers that sell the most product.

Point-of-purchase displays: Extra sales tools given to retailers to boost sales.

Training programs: dealer employees are trained in selling the product.

Push money: also known as "spiffs". An extra commission paid to retail employees to

push products.

Trade discounts (also called functional discounts): These are payments to distribution

channel members for performing some function .

Political issues
Sales promotions have traditionally been heavily regulated in many advanced industrial nations,

with the notable exception of the United States. For example, the United Kingdom formerly operated

under a resale price maintenance regime in which manufacturers could legally dictate the minimum

resale price for virtually all goods; this practice was abolished in 1964.[1]

Most European countries also have controls on the scheduling and permissible types of sales

promotions. Germany is notorious for having the most strict regulations. Famous examples include

the car wash that was barred from giving free car washes to regular customers and a baker who

could not give a free cloth bag to customers who bought more than ten rolls.


ICICI LTD. Have 5 types of product in financial world. Bonds are the products, which

create a safety guard towards taxes. Fixed deposits could either be used as a source of regular

income for a specified period or could be a source of cumulative income after a specified period

of time.

Mutual Funds are the most suitable investment for the common man as it offers an

opportunity to invest in a diversified, professionally managed basket of securities at a relevant



ICICI products are not highly trust worthy for the middle class families because of less

awareness but nowadays these products are highly demand because of goodwill. As per the

competition ICICI charges are also similar to the other organizations for ego Interest on F.D. are

according to the government regulation, Demat charges are according to the competitive

organizations, and etc. the charges of various products varies from time to time i.e. according to

the following budget.


Agra is a place where I did my survey. Agra is a big city and total population of Agra is about 40


I have taken 50 people in Agra those belong to medium-class society.

There are so many agents of ICICI working in Agra market, the main one under whom I had

done my project are:

Mr. Gautam Shukla & Mr. Sameer Metha

Just opposite to SAP Institute

Near Sanjay Talkies


The location of this center is very good.


There are some promoting tools that has been adopted by company.


ICICI product's advertisements can be find on approximately every channel ego DD 1, Metro,

Star plus, ZEE etc.

News Paper:

Hindustan Times, Times of India, and Lokmat Times in Agra.


Hoarding are also part of advertis.ement of ICICI product. Public relation:

This is the effective media for ICICI products in Agra.


A product occupies a dominant position among the four element of marketing mix. In fact

planning & development of the marketing mix normally begins with a dear idea of the firms

product or service.

In the words of Philip Kotler," a product is anything that can be offered to a market for

attention, acquisition, use or consumption. It includes physical objects services, personalities,

place, organization and ideas".

ICICI has launched a wide range of consumer products. These are as follows:

1. BONDS: ICICI is offering for public subscription unsecured redeemable bonds in the nature

of debentures, which are of following types:

Tax Saving Bonds: Investors can avail of rebate under section 88 of the income tax act,1961

by investing in this bonds.

Regular Income Bonds: This bond has been designed keeping in view the need for a

regular income to meet expenses that are incurred on a regular basis. The product also helps

provide a source of income to individuals who have either a variable income (self employed

professional, etc.) or who are not employed any longer.

Money Multiplier Bond( in the nature of Deep Discount bond): Events such as a child's

wedding, education, purchase of a house, car etc, require a lumpsum at a particular point of

time. This product has been designed to meet these and similar such requirements. Each

money multiplier bond is the nature of Deep Discount bond will have a different face value

under each option and will be issued at a discounted price.

Children Growth Bond (in the nature of Deep discount bond): This bond has been

designed to provide for lump sum expenditure requirements once the child has growth up for


such as the child's wedding, higher education etc.

Pension bond: This bond has been designed to meet the needs of those who wish to plan

for their requirement. A monthly pension can be received by the investor after a selected wait

period. the wait period can be chosen on the basis of the age of the investor and the likely age of

requirement, after which pension bond would provide a monthly source of pension. The
monthly pension would comprise interest and principal repayments in the form of Annuity.

There shall be no re-payment of lumpsum principal at the time of maturity of the bonds.

2. FIXED DEPOSIT: Fixed deposits as the name suggests are investments yielding a fixed rate

of return. Fixed deposits are a good way to add stability to and investors portfolio. Their returns,

being fixed are not dependent on market conditions. It is well known to investor that how he is

going to earn and when his principal will be returned. There are several factors, which have to be

taken into consideration for ego

Returns: Returns are the chief deciding factor in case of any investment. These are of two

types, regular and cumulative. In case of regular returns, returns are paid on principal amount at

the end of specified period. While in case of cumulative returns, returns are calculated on

principal amount but are paid only at the time of mat6urity of the deposit.

Credit Rating: Some of the credit rating agencies like ICRA, CRISIL, and CARE which

rate the companies considering the factors like, profit, liquidity position, the assets, quality,

financial and managerial policies, available for absorbing the provisions etc.

Servicing: The kind of service that the company or the bank offers also plays a major role

in decision making process.

Other services: The other services provided by different institution for different kind of

deposits are also considered for ego Loan against deposit, premature withdrawal facility and

insurance benefits etc.

ICICI Fixed Deposits:

Higher safety-"AAA" rated

Tax Benefit under section 80L

No TDS on interest up to RS.5000 in a financial year

ICICI Fixed Deposits Schemes

*ICICI Cumulative Deposits

Period minimum Maturity value* * Yield to investor

(months) amount*(RS.) of Rs.1 000 (% P.a.)**

12 15,000 1097.50 9.75

24 15,000 1216.50 10.30
36 15,000 1358.50 10.60
*ICICI Regular Income Deposit Annual Income Plan

Period Minimum Rate of interest

(Months) Amount*(RS.) (%P.a.)**

12 15,000 9.75
24 15,000 10.75
36 15,000 10.50
3. RBI Relief Bonds: These are not the own product of ICICI but ICICI act as a broker of

government to the customers for providing these bonds. These are the bond having 8.50/0 rate

of interest and fully tax free bonds. The interest is received by the investor in any of the two

options i.e. half-yearly interest option (interest paid after six months) and cumulative interest

option ( interest is paid after the maturity period) . The investor may option any of the way to

open an account for the scheme.

1 :Bond Ledger account option: In this option the investor can open account through any of the

designated organization of his city for e.g. In Aurangabad the organizations are take SBI, SHCI


2. Direct Investment method: In the second option the investor directly send the amount to

Kanpur office through Demand Draft and as a response get their account opened.

People mainly prefer the first option to save their DD charges.

4. Demat Ale: A Demat ale is just about the same as a bank account. You keep cash while in a

Demat account can be opened with a registered depository participant which includes financial

institutions like ICICI benefits of opening a Demat a/e

*No loss of share certificates.

*Less time required for share transfer

*No fake, forgery or counterfeit of transfer documents and certificates.



v To study about SBI and ICICI banks.

v To study about the home loan segment of SBI and ICICI Bank.

v To identify major strengths & weakness of home loan segment of SBI and ICICI Bank.

v To measure the level of satisfaction with regard to services, interpersonal behavior &

work time schedule among the customers of SBI and ICICI Bank.

v To find out the customers views towards home loan schemes of SBI and ICICI Bank.

v To know the preferences of the customers between SBI and ICICI Bank in relation to

home loans.


A good methodology is the life blood of work


Research methodology is the way to systematically solve the research problem. In it we study the
various steps that are generally adopted by researcher in studying in his research problem along with the logic
behind them.

It is necessary for the researcher to know research method, technique & the methodology, researcher
also need to understand the assumption underlying various technique & they can decide that certain
techniques & procedures will be applicable to certain problem & other will not be.
To conduct a research in any field. It is necessary that is study method & a way to approach certain
things should be correct & is systematic way. Thus to start a survey of project, its methodology should be to the
point. It is correct methodology is the key to any survey

The success of any desertion work largely depends upon correct selection & the application of the
nature of the proposed study, nature of information to be covered in desertion.

For the exploratory research undertaken to study the satisfaction level & related issues among the

management trainees of State Bank of India, mainly collected two kinds of data, i.e. Primary data &

Secondary data.


Population Or Universe All the existing customers of State Bank of India &
ICICI bank.

Sampling Unit Customers of State Bank of India & ICICI Bank living
at AGRA city specially.

Sampling Size The sampling size of the study is 100 people from the
selected population.

Sampling Method The sampling method will be convenience method.



Primary data collection:-

Primary data are those, which are collected afresh & for the first time.

Personal unstructured interview of the account holders and borrowers of the banks.

Distribution of the questionnaires among the Account holders / Borrowers to gather


Sample size will be of 100 respondents is taken :-

- 50 borrowers of SBI

- 50 borrowers of ICICI
Secondary data collection:-
Secondary data which has already been collected & analyzed by some one else-

(1) Documents given by bank.

(2) Internet information & websites

(3) Book & magazines.

(4) Information given by customers

(5) Pamphlets & form of State Bank of India


1. To select your bank you give preference to which?

a) ICICI Bank b) SBI Bank

2. If you select private bank you give preference to which bank?


HDFC d) Axis
3. How you introduce with this bank?

a) Newspaper c) Television

b)Public d) Employee

4. Are you satisfied with the services of the bank?

Yes b) No
5. What is the level of the behaviour of the bank employees towards the customers?

Best c) Good

Average d) Below average

6. Are the employees present on the counter when you visit the bank?

Yes b) No
7. What is the level of the services of enquiry, sitting facility and drinking water etc?

Best c) Good

Average d) Below Average

8. In which areas you face problem in bank services ?

a. Cash transaction b) Customer service

c) Issuing & payments of drafts
d) Payments of out station cheques e) None

8. Are you have ATM card or want to use this facility?

Yes b) No
9. To improve ATM services what should do by bank ?

More ATMs c) Free of charge

More Limit for transaction d) Others

10. Are you have knowledge about the credit card?

Yes c) No c) Dont know

11. You give preference to which bank for credit card?

Private bank c) Nationalized

Both d) None

12. Do you have or wish to a loan policy?

Personal loan c) Home loan

Education Loan d) Auto loan

13. Do you have or wish to a fixed deposit policy?

Yes b) No

14. What is level of trust and reliability on the bank?

High c) Medium

Low d) Dont know

16. Do you have or wish to investment policy of State Bank of India?

a) Yes b) No


Customer give preference to 70% Nationalized bank and 30% Private Bank.

Customer give preference to 40% State Bank of India, 15% ICICI Bank, 20% HDFC

Bank and 10% Axis Bank.

Customer introduce with this bank by medium i.e 10% Newspaper, 20% Television, 30%

Public and 40% Employee.

Customer 75% satisfied with the services of the bank and 25% not satisfied with the

services of the bank.

The level of the behaviour of the bank employees towards the

customers 30% Best, 15% Good, 25% Average and 30% Below average.

The employees present on the counter when 60% customers visit the bank and 40%

customers not visit the bank.

The level of the services of enquiry, sitting facility and drinking water etc i.e. 45% Best,

30% Good, 15% Average and 10% Below Average.

In which areas you face problem in bank services i.e. 10% Cash transaction, 15%

Customer service, 20% Issuing & payments of drafts, 35% Payments of out station

cheques and 20% None.

Customer have ATM card or want to 90% use this facility and 10% not used this facility.

The bank improved ATM services should be 30% More ATMs, 40% Free of charge, 20%

More Limit for transaction and 10% Others.

40% Customer have knowledge about the credit card and 30% not know about credit card

and 30% don't know about credit card.

Customers give preference 10% to Private bank, 30% to Nationalised, 20% both and 40%

none of these.

customer have or wish to a 40% Personal Loan, 10% Home Loan, 25% Education loan

and 35% Auto Loan.

Customer have or wish to a fixed deposit policy i.e. 75% Yes and 25% No.
The level of trust and reliability on the bank 50% High, 30% Medium, 15% Low and 5%

Dont know.


Though every effort was made to make the report authentic in every sense, yet there are
few factors which might have their influence on the final report.
1. There was time shortage. Time provided to us was very short which make it
difficult for us to conduct survey at wider range.
2. Sometimes respondents did not respond well to all the questions in the
3. Low cooperation from the bank executives make to struggle more, due to which
we were forced to restrict our sample size to 80.
4. Some biasness might have occurred in analysis. Because of lack of expert
5. Best efforts were made to incorporate all-important variables in study, yet chances
of some of variables not appearing in study are not ruled out.
6. Frequent developments in this sector can be a major reason of limitation in the
7. Biasness in views of respondents cant be ruled out 8.
Resistance to change sometimes affects view of respondents

Under training, Bank assign me to visit the various markets in Agra and formulate the

data regarding customer exists Bank & the services provided by that Bank. This learned me to

communicate & interact with different customers. My responsibility to tell the customers about

the various products and services of the Bank like saving account, current account , FDs and

other investment policies of Banks corporate agent AVIVA LIFE INSURANCE CO. This

gave me an opportunity to know that how can sale banking & insurance products. Sometimes
Bank provide me the basic knowledge of Bank operations. This made me aware about the

banking internal operations.

The exploratory study of customers perception and satisfaction of State Bank of India

and ICICI Bank, Agra branch helped me in understanding the basics of communication while

interacting with customer to know their views on bank performance. For collecting views of

customer I developed a Questionnaire, during the process of developing questionnaire I learned

to formulate Questions in order to get right type of specific information. I learned about open

ended questions, close ended questions, direct questions, indirect questions. The process of

designing Questionnaire helped me to learn about and understand different types of scales and

scaling techniques.



Banking business in the Modern banking scenario is very helpful to both Banks and

their customers. In the Modern scenario services like ATM, Phone Banking, Online Banking

and Debit/Credit Card are very useful to banks and their customers. All these components of

modern banking raise the customers to the Bank.

In older days, though not many people were directly involved with the banks but still the

whole process of the bank's day-to-day work was very tire-some and very time consuming. All

the works like maintaining of accounts, Ledger entries, complex calculations of each and every
customer was done manually which many a times resulted in mistakes & errors and getting

those errors rectified was again a very boring job.

But now since the introduction of computers in today's concept of modern banking, all

the maintenance of accounts etc. have become a matter of just a few keys strokes with almost

neutralizing the chances of mistakes.

So the whole banking business has become so very fast and easy to operate that even a

child of minor age can maintain his account by himself and all do kinds of interactions with the


So to conclude we can say that the concept of modern banking has contributed a lot in

the banking business and has helped to increase the customers of the bank as well as the quality

of services provided to the customers.


65% of the people run their own account in some or the other bank but 35% person does

not have any account in any bank. So this is the opportunity for the banks to increase

their account volume.

70% person have knowledge about ATM but 30%person have no knowledge about ATM

so if the bank grants knowledge to the persons about ATM. then bank can increase their

ATM service.

60% persons are aware with, the Debit Card/Credit Card.40% persons are not aware. So

this is the opportunity for the banks to increase their business of Debit Card and Credit

60% people have knowledge about online banking 40% people have not knowledge about

online banking. So the Banks should take step to aware to person about online banking.

20% people have Demat account, 80% person have no Demat account so this is also an

opportunity to the bank for increasing their Demat accounts Volume.

Bank Should go for expansion of both branchs and ATMs in all over the city & rural area



1. To select your bank you give preference to which?

ICICI Bank b) SBI Bank

2. If you select private bank you give preference to which bank?

a) SBI b) ICICI c) HDFC d) Axis

3. How you introduce with this bank?

a) Newspaper c) Television c) Public d) Employee

4. Are you satisfied with the services of the bank?

a) Yes b) No

5. What is the level of the behaviour of the bank employees towards the customers?

Best b) Good c)Average d) Below average

6. Are the employees present on the counter when you visit the bank?

Yes b) No

7. What is the level of the services of enquiry, sitting facility and drinking water etc?

Best b) Good

Average d) Below Average

8. In which areas you face problem in bank services ?

Cash transaction b) Customer service

c) Issuing & payments of drafts

d) Payments of out station cheques e) None

9. Are you have ATM card or want to use this facility?

a) Yes b) No

10. To improve ATM services what should do by bank ?

More ATMs b) Free of charge

More Limit for transaction d) Others

11. Are you have knowledge about the credit card?

a) Yes b) No c) No d) Dont know

12. You give preference to which bank for credit card?

Private bank b) Nationalized

c) Both d) None

13. Do you have or wish to a loan policy?

Personal loan b) Home loan

Education Loan d) Auto loan

14. Do you have or wish to a fixed deposit policy?

Yes b) No

15. What is level of trust and reliability on the bank?

High b) Medium

c) Low d) Dont know

16. Do you have or wish to investment policy of State Bank of India?

a) Yes b) No


Through Internet

Magazines- Outlook money, Business Economies