Professional Documents
Culture Documents
Summar Internship Report On SBI Vs ICICI Bank
Summar Internship Report On SBI Vs ICICI Bank
ANK OF INDIA
INDEX
CONTENT PAGE NO
Acknowledgement.............................................................................................. 3
Executive Summary............................................................................................ 4
Introduction of SBI............................................................................................. 7
Management ....................................................................................................... 14
Introduction of ICICI.......................................................................................... 15
History.................................................................................................................. 16
SWOT ANALYSIS
SBI....................................................................................................................... 28
ICICI..................................................................................................................... 29
Current Scenario
Balance sheet...................................................................................................... 37
1
P& L Account....................................................................................................... 37
Balance sheet...................................................................................................... 41
Analysis of project............................................................................................... 48
Statement of problem........................................................................................ 49
Research Objective............................................................................................ 50
Research methodology..................................................................................... 53
Analysis of data................................................................................................. 55
Findings............................................................................................................ 60
Conclusion......................................................................................................... 64
2
Acknowledgement
I am honoured to express my gratitude to all the people who were always a great help to me
in achieving this milestone. I could have never completed this task without valuable
contributions from my teachers and faculty. I express my heart full indebtness and owe a
deep sense of gratitude to all of them including my guides Dr.Parul Nagar and Mr. Farhan
Shek.
I am extremely thankful to Prof. V. Subramaniam for his valuable guidance throughout this
project. Above all I extend my sincere thanks to all my colleagues and friends without whom
Thanks
3
Executive Summary
In the growing global competition, the productivity of any business concern depends upon the
behavioural aspect of consumers. This topic deals with the customer’s perception towards
other Advance Product from SBI and ICICI investment. This project report contains 5
different chapters. The report begins with the introduction to company, its area of operation,
The second chapter is the introduction to the Advance Product which gives a brief idea
regarding ADVANCE PRODUCT . It also contains the objectives and limitations of the
project.
The third chapter, methodology adopted in preparing this report is mentioned. It covers the
sample procedure, types of data used and the data collection method.
The fourth chapter comprehensive coverage of forecasting concepts and techniques which
shows the analysis of data through tabulation, computation and graphical representation of
The fifth chapter deals with the findings, suggestion & conclusion part which is very much
As we know that only analysis and conclusion is not the end of a research, so in the sixth
chapter the recommendation part is covered which are made after a depth study of the
4
STATE BANK OF INDIA ICICI BANK
In each of the five chapters as described above, every chapter has been scheduled in a
manner so as to enable the reader to appreciate the contents easily. The report is supported
byOF
ANK figures
INDIA and data wherever necessary with a view to assist the reader in developing a clear
I hope this report will be extremely useful for those it is meant. Constructive and healthy
5
STATE BANK OF INDIA ICICI BANK
ANK OF INDIA
The banking section will navigate through all the aspects of the Banking System in India. It
will discuss upon the matters with the birth of the banking concept in the country to new
The banker of all banks, Reserve Bank of India (RBI), the Indian Banks Association (IBA)
and top 20 banks like IDBI, HSBC, ICICI, ABN AMRO, etc. has been well defined under three
However, in the introduction part of the entire banking cosmos, the past has been well
The first deals with the history part since the dawn of banking system in India. Government
took major step in the 1969 to put the banking sector into systems and it nationalised 14
private banks in the mentioned year. This has been elaborated in Nationalisationof Banks in
India. The last but not the least explains about the scheduled and unscheduled banks in
India. Section 42 (6) (a) of RBI Act 1934 lays down the condition of scheduled commercial
banks. The description along with a list of scheduled commercial banks are given on this
page.
6
STATE BANK OF INDIA ICICI BANK
Introduction of SBI
ANK OF INDIA
The origin of the State Bank of India goes back to the first decade of the nineteenth century
with the establishment of the Bank of Calcutta in Calcutta on 2 June 1806. Three years later
the bank received its charter and was re-designed as the Bank of Bengal (2 January 1809). A
unique institution, it was the first joint-stock bank of British India sponsored by the
Government of Bengal. The Bank of Bombay (15 April 1840) and the Bank of Madras (1 July
1843) followed the Bank of Bengal. These three banks remained at the apex of modern
banking in India till their amalgamation as the Imperial Bank of India on 27 January 1921.
Primarily Anglo-Indian creations, the three presidency banks came into existence either as a
result of the compulsions of imperial finance or by the felt needs of local European commerce
and were not imposed from outside in an arbitrary manner to modernise India's economy.
Their evolution was, however, shaped by ideas culled from similar developments in Europe
and England, and was influenced by changes occurring in the structure of both the local
trading environment and those in the relations of the Indian economy to the economy of
The State Bank of India, the country’s 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
7
STATE BANK OF INDIA ICICI BANK
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
ANK OF INDIA
Merchant Acquisition, Advisory Services, structured products etc – each one of these
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
It is also focusing at the top end of the market, on whole sale banking capabilities to provide
India’s 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
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.
8
STATE BANK OF INDIA ICICI BANK
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
ANK OFtraining
the INDIA 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 Program.
An important turning point in the history of State Bank of India is the launch of the first Five
Year Plan of independent India, in 1951. The Plan aimed at serving the Indian economy in
general and the rural sector of the country, in particular. Until the Plan, the commercial banks
of the country, including the Imperial Bank of India, confined their services to the urban
sector. Moreover, they were not equipped to respond to the growing needs of the economic
9
STATE BANK OF INDIA ICICI BANK
revival taking shape in the rural areas of the country. Therefore, in order to serve the
economy as a whole and rural sector in particular, the All India Rural Credit Survey
The All India Rural Credit Survey Committee proposed the take over of the Imperial Bank of
India, and integrating with it, the former state-owned or state-associate banks. Subsequently,
an Act was passed in the Parliament of India in May 1955. As a result, the State Bank of
India (SBI) was established on 1 July 1955. This resulted in making the State Bank of India
more powerful, because as much as a quarter of the resources of the Indian banking system
were controlled directly by the State. Later on, the State Bank of India (Subsidiary Banks) Act
was passed in 1959. The Act enabled the State Bank of India to make the eight former State-
The State Bank of India emerged as a pacesetter, with its operations carried out by the 480
offices comprising branches, sub offices and three Local Head Offices, inherited from the
Imperial Bank. Instead of serving as mere repositories of the community's savings and
lending to creditworthy parties, the State Bank of India catered to the needs of the
customers, by banking purposefully. The bank served the heterogeneous financial needs of
Branches
The corporate center of SBI is located in Mumbai. In order to cater to different functions,
there are several other establishments in and outside Mumbai, apart from the corporate
center. The bank boasts of having as many as 14 local head offices and 57 Zonal Offices,
located at major cities throughout India. It is recorded that SBI has about 10000 branches,
10
STATE BANK OF INDIA ICICI BANK
ATM Services
ANK OF INDIA
SBI provides easy access to money to its customers through more than 8500 ATMs in India.
The Bank also facilitates the free transaction of money at the ATMs of State Bank Group,
which includes the ATMs of State Bank of India as well as the Associate Banks – State Bank
of Bikaner & Jaipur, State Bank of Hyderabad, State Bank of Indore, etc. You may also
transact money through SBI Commercial and International Bank Ltd by using the State Bank
Subsidiaries
The State Bank Group includes a network of eight banking subsidiaries and several non-
11
STATE BANK OF INDIA ICICI BANK
Personal Banking
Other Services
Agriculture/Rural Banking
NRI Services
ATM Services
12
STATE BANK OF INDIA ICICI BANK
Demat Services
Internet Banking
Mobile Banking
International Banking
RBIEFT
E-Pay
E-Rail
Broking Services
Gift Cheques
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,
INVESTMENT
13
STATE BANK OF INDIA
Products:
SBI
ANK OFMutual
INDIA Fund is India’s largest bank sponsored mutual fund and has an enviable track
The fund traces its lineage to SBI - India’s largest banking enterprise. The institution has
grown immensely since its inception and today it is India's largest bank, patronised by over
SBI Mutual Fund is a joint venture between the State Bank of India and Société Générale
Asset Management, one of the world’s leading fund management companies that
Mumbai, August 26, 2008 – SBI Life Insurance has achieved a unique distinction of ranking
third globally in terms of number of Million Dollar Round Table (MDRT) members. Of the
40,000 SBI Life Insurance Advisors, 1,662 have qualified for the prestigious MDRT
membership. Among these, 124 qualified for Court of Table (COTs) and 20 for Top of Table
(TOTs).
2008
RANK COMPANY NAME COUNTRY MEMBERS
1 Samsung Life Ins Korea 2,486
2 New York Life USA 2,167
3 SBI Life Insurance India 1,662
14
STATE BANK OF INDIA ICICI BANK
Management
ANK OF INDIA
The bank has 14 directors on the Board and is responsible for the management of the
Bank’s business. The board in addition to monitoring corporate performance also carries out
functions such as approving the business plan, reviewing and approving the annual budgets and
borrowing limits and fixing exposure limits. Mr. O. P. Bhatt is the Chairman of the bank. The five-
year term of Mr. Bhatt will expire in March 2011. Prior to this appointment, Mr. Bhatt was
Managing Director at State Bank of Travancore. Mr. Bhatt has more than 30 years of experience
in the Indian banking industry and is seen as futuristic leader in his approach towards technology
and customer service. Mr. Bhatt has had the best of foreign exposure in SBI. We believe that the
appointment of Mr. Bhatt would be a key to SBI’s future growth momentum. Mr. T S Bhattacharya
is the Managing Director of the bank and known for his vast experience in the banking industry.
Recently, the senior management of the bank has been broadened considerably. The positions
of CFO and the head of treasury have been segregated, and new heads for rural banking and for
corporate development and new business banking have been appointed. The management’s
thrust on growth of the bank in terms of network and size would also ensure encouraging
ICICI Group offers a wide range of banking products and financial services to corporate and retail
customers through a variety of delivery channels and through its specialised group companies,
subsidiaries and affiliates in the areas of personal banking, investment banking, life and general
insurance, venture capital and asset management. With a strong customer focus, the ICICI Group
Companies have maintained and enhanced their leadership position in their respective sectors.
15
STATE BANK OF INDIA ICICI BANK
ICICI Bank is India's second-largest bank with total assets of Rs. 3,793.01 billion (US$ 75 billion) at
March 31, 2009 and profit after tax Rs. 37.58 billion for the year ended March 31, 2009. The Bank
ANK OF INDIA
has a network of 1,451 branches and about 4,721 ATMs in India and presence in 18 countries.
HITORY
1955:
The Industrial Credit and Investment Corporation of India Limited (ICICI) incorporated at the
initiative of the World Bank, the Government of India and representatives of Indian industry,
with the objective of creating a development financial institution for providing medium-term
ICICI emerges as the major source of foreign currency loans to Indian industry. Besides
funding from the World Bank and other multi-lateral agencies, ICICI was also among the first
1956:
1961:
1967:
16
STATE BANK OF INDIA ICICI BANK
ICICI made its first debenture issue for Rs.6 crore, which was oversubscribed
ANK OF INDIA
1972:
1977:
ICICI sponsored the formation of Housing Development Finance Corporation. Managed its
1986:
ICICI, along with UTI, set up Credit Rating Information Services of India Limited, India's first
1993:
17
STATE BANK OF INDIA ICICI BANK
1994:
ANK OF INDIA
ICICI Securities and Finance Company Limited in joint venture with J. P. Morgan set up
1996:
ICICI Ltd became the first company in the Indian financial sector to raise GDR
2000:
ICICI launched retail finance - car loans, house loans and loans for consumer durables.
ICICI becomes the first Indian Company to list on the NYSE through an issue of American
Depositary Shares
2001:
ICICI Bank became the first commercial bank from India to list its stock on NYSE.
18
STATE BANK OF INDIA ICICI BANK
The Boards of ICICI Ltd and ICICI Bank approved the merger of ICICI with ICICI Bank. 2002:
ANK OF INDIA
ICICI Ltd merged with ICICI Bank Ltd to create India's second largest bank in terms of
assets.
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
"E Lobby", a self-service banking centre inaugurated in Pune. It was the first of its kind in
India.
ICICI Bank Home Shoppe, the first-ever permanent aggregation and display of housing
2003:
19
STATE BANK OF INDIA ICICI BANK
ANK OF INDIA
ICICI Bank announced the setting up of its first ever offshore branch in Singapore.
The first offshore banking unit (OBU) at Seepz Special Economic Zone, Mumbai, launched.
India's first ever "Visa Mini Credit Card", a 43% smaller credit card in dimensions launched.
2005:
ICICI Bank and CNBC TV 18 announced India's first ever awards recognising the
20
STATE BANK OF INDIA ICICI BANK
ANK OF 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
ICICI Bank introduced 8-8 Banking wherein all the branches of the Bank would remain open
ICICI Bank introduced the concept of floating rate for home loans in India.
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
21
STATE BANK OF INDIA ICICI BANK
First Indian company to make a simultaneous equity offering of $1.8 billion in India, the
ANK OF INDIA
United States and Japan.
ICICI Bank became the largest bank in India in terms of its market capitalisation
2007:
Introduced a new product - 'NRI smart save Deposits' – a unique fixed deposit scheme for
nonresident Indians.
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
22
STATE BANK OF INDIA ICICI BANK
ICICI Bank's USD 2 billion 3-tranche international bond offering was the largest bond offering
ANK OF INDIA
by an Indian bank.
ICICI Bank raised Rs 20,000 crore (approx $5 billion) from both domestic and international
ICICI Bank's GBP 350 million international bond offering marked the inaugural deal in the
sterling market from an Indian issuer and also the largest deal in the sterling market from
Asia.
Launched India's first ever jewellery card in association with jewelry major Gitanjali Group.
ICICI Bank became the first bank in India to launch a premium credit card -- The Visa
Introduced SME Toolkit, an online resource centre, to help small and medium enterprises
ICICI Bank signed a multi-tranche dual currency US$ 1.5 billion syndication loan agreement
in Singapore.
23
ICICI BANK
STATE BANK OF INDIA
ICICI Bank became the first private bank in India to offer both floating and fixed rate on car
ANK OF INDIA
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 career
Launched Bank@home services for all savings and current a/c customers residing in India
ICICI Bank Eurasia LLC inaugurated its first branch at St Petersburg, Russia.
2008:
ICICI Bank enters US, launches its first branch in New York.
ICICI Bank launched iMobile, a breakthrough innovation in banking where practically all
ICICI Bank concluded India's largest ever securitisation 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)
24
STATE BANK OF INDIA ICICI BANK
in 2008 till date and the second largest deal in Asia (ex-Japan & Australia) since the
beginning of 2007.
ANK OF INDIA
BANK SEVIES
o Loans
o Cards
o Wealth management
o Treasury Banking
o Investment Banking
o Capital Markets
o Custodial Services
o Structured Finance
o Technology Finance
o Business Loans
o Forex
o Trade
25
o Cash Management Services
o Bank Accounts
o Investment
o Property Solutions
o Insurance
o Loans
o Retirement Solutions
o Health Solutions
o Education Solutions
o Motor Insurance
o Home Insurance
o Primary Dealership
o Institutional Equities
o Retail Equities
26
Mutual Fund o Our Funds
o Performance Analyser
o Systematic Investing
o Compare Schemes
INVESTOR RELATIONS
It is ICICI Group's belief that all stakeholders should have access to complete
information regarding its position to enable them to accurately assess its future
potential. ICICI Group regularly publishes information on its operations and various
Annual Reports
Investor Presentations
SEC Filings
Credit Ratings
Investor FAQs
27
STATE BANK OF INDIA ICICI BANK
The growth for SBI in the coming years is likely to be fueled by the following factors:
• Continued effort to increase low cost deposit would ensure improvement in NIMs and
hence earnings.
• Growing retail & SMEs thrust would lead to higher business growth.
• Strong economic growth would generate higher demand for funds pursuant to higher
Weakness/ Threats:
The risks that could ensue to SBI in time to come are as under:
• SBI is currently operating at a lowest CAR. Insufficient capital may restrict the growth
• Stiff competition, especially in the retail segment, could impact retail growth of SBI
• Contribution of retail credit to total bank credit stood at 26%. Significant thrust on
Rs50bn.
• Slow down in domestic economy would pose a concern over credit off-take thereby
28
STATE BANK OF INDIA ICICI BANK
ANK OF INDIA
STRENGHTS:
1) Online Services: ICICI Bank provides online services of all it’s banking
advanced technology to provide the customers with taster banking services. All
the computerized machines are located in suitable manner & are very useful to
3) Friendly Staff: The staff of ICICI Bank in all branches is very friendly & help
the customers in all cases. They provide faster services along with bonding &
29
STATE BANK OF INDIA ICICI BANK
4) 12 hrs. Banking services: Compared to other bank ICICI bank provides long
hrs.
ANK of services
OF INDIA i.e. 8-8 services to the customers. This service is one of it’s kind
& is very helpful for the customers who are in urgent need of money.
5) Other Facilities to the Customers & Employees: ICICI Bank also provides
other facilities like drinking water facilities, proper sitting arrangements to the
customers. And there are also proper Ventilation & sanitary facilities for the
6) Late night ATM services: ICICI bank provides late night ATM services to the
customers. The ATM centers of ICICI bank works even after 11:00pm. at night
in certain branches.
Weakness:
for the services provided by them when compared to other bank & that is
30
STATE BANK OF INDIA ICICI BANK
ANK2)
OFLess
INDIA Credit Period: ICICI bank provides credit facilities but only upto
limited period. Even when the credit period is not over it sends reminder
OPPORTUNITIES:
1) Bank –Insurance services: The bank should also provide insurance services.
That means the bank can have a tie-up with a insurance company. The bank
will advertise & promote the different policies introduced by the insurance
higher returns on deposits in comparison of the present situation. This will also
upto large extent help the bank earn profits & popularity.
31
STATE BANK OF INDIA ICICI BANK
ANK OF INDIAwhere
course the students specialize in the functioning & services of the bank &
also are knowledge about various tax policies. The bank can recruit these
students through tie-ups with colleges. Such students will surely prove as an
4) Associate with social cause: The bank can also associate itself with social
causes like providing relief aid patients, funding towards natural calamities. But
this falls in the 4th quadrant so the bank should neglect it.
THREATS
internationally. Bank like CITI Bank, HSBC, ABM, Standered Chartered, HDFC
also provide equivalent facilities like ICICI do and also ICICI do not have
32
STATE BANK OF INDIA ICICI BANK
2) Net Services: ICICI Bank provides all kind of services on-line. There can be
ANK OF INDIA
easy access to the e-mail ids of the customers through wrong people. The
mail ids.
managers are diverse and any one wrong decision can laid to heavy losses to
the bank.
the less educated people. But this threat falls in the 4th quadrant so its
33
STATE BANK OF INDIA ICICI BANK
CORRENT SENERIO
ANK OF INDIA
SBI profit rises 46% in Q4 on higher other income
Kolkata, May 9 Riding on higher other income including profits from treasury operations,
State Bank of India posted a 46 per cent rise in net profit at Rs 2,742 crore for the fourth
quarter ended March 31, 2009, up from Rs 1,883 crore during the corresponding quarter of
last year.
The bank made a profit of Rs 1,508 crore on account of sale of investments in the quarter
Other income for the quarter under consideration grew by 67 per cent at Rs 4,718 crore (Rs
2,817 crore).
The net profit for the year ended March 31, 2009 increased by 35.5 per cent at Rs 9,121
crore, against Rs 6,729 crore during the corresponding period last year.
34
STATE BANK OF INDIA ICICI BANK
The board of directors at a meeting here on Saturday recommended a dividend of 290 per
cent or Rs 29 per share (215 per cent) for the year under review.
ANK OF INDIA
The bank’s treasury income in 2008-09 increased by 171 per cent to Rs 2,566 crore on
Pillar of growth
Treasury would continue to be an important pillar of growth for the bank, he maintained.
“Historically, treasury was our residual business but this year treasury has registered
outstanding growth. We are now trying to offer products at par with other multinational banks.
Our fee-based income, which was earlier growing in single digits, also grew by 30 per cent in
2008-09,” Mr Bhatt said explaining the reason for the growth in the bank’s net profit.
Referring to the lower growth in net profit in 2008-09 vis-À-vis 2007-08 when the growth was
48 per cent, he said, “It was due to the rise in overhead costs due to branch expansion,
liquidity overhang and the cost of carrying it and also on account of higher provisioning for
35
STATE BANK OF INDIA ICICI BANK
A 30 per cent growth in advances also contributed to the growth of net profit, he said.
ANK OF INDIA
“There has been a robust growth in our advances not only in terms of volumes but also in
Performance
The bank’s core fee-based income for the year ended March 2009 grew by 29 per cent to Rs
7,617 crore contributed by commission, exchange, loan processing fee and account
maintenance charges.
Other income increased by 46 per cent at Rs 12,691 crore (Rs 8,695 crore).
Current Account and Savings Bank Account (CASA) deposits increased by 22 per cent to Rs
2,73,396 crore (Rs 2,23,627 crore) and term deposits grew by 41.5 per cent to Rs 4,22,944
crore (Rs 2,98,962 crore). The share of bulk deposits to total deposits declined to 10.81 per
Advances went up 30 per cent at Rs 5,48,540 crore (Rs 4,22,331 crore). The credit-deposit
“There has been an unprecedented flow of deposits since November 2008 to the tune of Rs
1,000 crore a day; on the other hand there has been a decline in credit offtake. This has led
36
STATE BANK OF INDIA ICICI BANK
The net interest margin (NIM) declined to 2.93 per cent (3.07 per cent). “The huge growth in
deposits, lesser growth and lower yield on advances has put a pressure on our margins,” Mr
ANK OF INDIA
Bhatt said.
The bank witnessed a two basis point dip in NIM in April 2009. However, with the cost of
deposits coming down, the bank was hopeful of either maintaining or registering a slight
NPAs flat
The net non-performing assets remained almost flat at 1.76 per cent (1.78 per cent).
Domestic NPAs increased by Rs 1,774 crore of which Ratnagiri Power alone contributed to Rs
1,651 crore,” Mr Bhatt said and added that the bank would be able to manage NPAs at the current
level.
BANANCE SHEET
Mar '05 Mar '06 Mar '07 Mar '08 Mar '09
12
12 mths 12 mths 12 mths 12 mths
mths
37
Equity Share Capital 526.30 526.30 526.30 631.47 634.88
367,047.5
Deposits 380,046.06 435,521.09 537,403.94 742,073.13
3
386,231.8
Total Debt 410,687.30 475,224.43 589,131.35 795,786.81
4
459,882.8
Total Liabilities 493,869.56 566,565.25 721,526.31 964,432.08
7
Mar '05 Mar '06 Mar '07 Mar '08 Mar '09
Assets
Cash & Balances with RBI 16,810.33 21,652.70 29,076.43 51,534.62 55,546.17
Balance with Banks, Money at Call 22,511.77 22,907.30 22,892.27 15,931.72 48,857.63
131,325.4
Contingent Liabilities 191,819.34 259,536.57 736,087.59 614,603.47
0
38
Profit & Loss account of State Bank of India ------------------- in Rs. Cr. -------------------
Mar '05 Mar '06 Mar '07 Mar '08 Mar '09
Income
Interest Earned 32,428.00 35,794.93 39,491.03 48,950.31 63,788.43
Other Income 7,119.90 7,388.69 7,446.76 9,398.43 12,691.35
Total Income 39,547.90 43,183.62 46,937.79 58,348.74 76,479.78
Expenditure
Interest expended 18,483.38 20,159.29 23,436.82 31,929.08 42,915.29
Employee Cost 6,907.35 8,123.04 7,932.58 7,785.87 9,747.31
Selling and Admin Expenses 2,634.64 1,853.32 3,251.14 4,165.94 5,122.06
Depreciation 752.21 729.13 602.39 679.98 763.14
Miscellaneous Expenses 6,465.82 7,912.15 7,173.55 7,058.75 8,810.75
Preoperative Exp Capitalised 0.00 0.00 0.00 0.00 0.00
Operating Expenses 11,278.18 11,872.89 13,251.78 14,609.55 18,123.66
Provisions & Contingencies 5,481.84 6,744.75 5,707.88 5,080.99 6,319.60
Total Expenses 35,243.40 38,776.93 42,396.48 51,619.62 67,358.55
Mar '05 Mar '06 Mar '07 Mar '08 Mar '09
Net Profit for the Year 4,304.52 4,406.67 4,541.31 6,729.12 9,121.23
Extraordionary Items 0.00 0.00 0.00 0.00 0.00
Profit brought forward 0.34 0.34 0.34 0.34 0.34
Total 4,304.86 4,407.01 4,541.65 6,729.46 9,121.57
Preference Dividend 0.00 0.00 0.00 0.00 0.00
Equity Dividend 657.87 736.82 736.82 1,357.66 1,841.15
Corporate Dividend Tax 93.75 103.34 125.22 165.87 248.03
Per share data (annualised)
Earning Per Share (Rs) 81.79 83.73 86.29 106.56 143.67
Equity Dividend (%) 125.00 140.00 140.00 215.00 290.00
Book Value (Rs) 457.39 525.25 594.69 776.48 912.73
Appropriations
Transfer to Statutory Reserves 3,552.89 3,566.51 3,682.15 5,205.69 7,032.04
Transfer to Other Reserves 0.01 0.00 -2.88 -0.10 0.01
Proposed Dividend/Transfer to Govt 751.62 840.16 862.04 1,523.53 2,089.18
Balance c/f to Balance Sheet 0.34 0.34 0.34 0.34 0.34
Total 4,304.86 4,407.01 4,541.65 6,729.46 9,121.57
• Profit before tax of Rs. 5,117 crore for the year ended March 31, 2009 compared to Rs.
39
STATE BANK OF INDIA ICICI BANK
• 12% year-on-year increase in operating profit for the year ended March 31, 2009
• Increase of Rs. 5,286 crore in CASA deposits in quarter ended March 31, 2009
• Strong capital adequacy ratio of 15.5% and Tier-1 capital adequacy ratio of 11.8% after
proposed dividend; Tier-1 capital adequacy ratio highest among large Indian banks The
held at Mumbai today, approved the audited accounts of the Bank for the
• Profit before tax for the year ended March 31, 2009 (FY2009) was Rs.5,117 crore (US$
1,009 million), compared to Rs. 5,056 crore (US$997 million) for the year ended March 31,
2008 (FY2008).
• Profit after tax for FY2009 was Rs. 3,758 crore (US$ 741 million) compared to Rs. 4,158
crore (US$ 820 million) for FY2008 due to the higher effective tax rate on account of lower
• Net interest income increased 15% from Rs. 7,304 crore (US$ 1,440million) for FY2008 to
While the advances declined marginally year-on-year, the net interest income increased due
Operating expenses (including direct marketing agency expenses) decreased 14% to Rs.
6,835 crore (US$ 1,348 million) in FY2009 from Rs. 7,972 crore (US$ 1,572 million) in
FY2008. The cost/average asset ratio for FY2009 was 1.8% compared to 2.2% for FY2008.
40
ICICI BANK
STATE BANK OF INDIA
• Profit before tax for the quarter ended March 31, 2009 (Q4-2009) was Rs. 1,071 crore (US$
211 million) compared to Rs. 1,343 crore (US$265 million) for the quarter ended March 31,
ANK OF INDIA
2008 (Q4-2008),primarily due to lower level of fee income at Rs. 1,343 crore (US$ 265
million) in Q4-2009 compared to Rs. 1,928 crore (US$ 380million) in Q4-2008, partly offset
by lower operating expenses and higher net interest income. The lower level of fee income
was due to reduced investment and acquisition financing activity in the corporate sector and
lower level of fees from distribution of retail financial products, reflecting the adverse
• Profit after tax for Q4-2009 was Rs. 744 crore (US$ 147 million) compared to Rs. 1,150
Balance sheet
During the year, the Bank has pursued a strategy of prioritizing capital conservation, liquidity
management and risk containment given the challenging economic environment. This is
reflected in the Bank’s strong capital adequacy and its focus on reducing its wholesale term
deposit base and increasing its CASA ratio. The Bank is maintaining excess liquidity on an
ongoing basis. The Bank has also placed strong emphasis on efficiency improvement and
cost rationalization. The Bank continues to invest in expansion of its branch network to
enhance its deposit franchise and create an integrated distribution network for both asset and
liability products. In line with the above strategy, the total deposits of the Bank were
Rs.218,348 crore (US$43 billion) at March 31, 2009, compared to Rs.244,431 crore (US$
48.2 billion) at March 31, 2008. The reduction in term deposits by Rs. 24,970 crore (US$ 4.9
41
STATE BANK OF INDIA ICICI BANK
billion) was primarily due to the Bank’s conscious strategy of paying off wholesale deposits.
During Q4-2009, total deposits increased by Rs. 9,283 crore (US$ 1.8 billion), of
ANK OF INDIA
which Rs. 5,286 crore (US$ 1.0 billion), or about 57%, was in the form of CASA deposits.
The CASA ratio improved to 28.7% of total deposits at March 31, 2009 from 26.1% at March
31, 2008.
The branch network of the Bank has increased from 755 branches at March 31, 2007 to
1,438 branches at April 24, 2009. The Bank is also in the process of opening 580 new
branches which would expand the branch network to about 2,000 branches, giving the Bank
In line with the strategy of prioritizing capital conservation and risk containment, the loan
book of the Bank decreased marginally to Rs.218,311 crore (US$ 43.0 billion) at March 31,
2009 from Rs. 225,616 crore(US$ 44.5 billion) at March 31, 2008.
Capital adequacy The Bank’s capital adequacy at March 31, 2009 as per Reserve Bank of
India’s revised guidelines on Basel II norms was 15.5% and Tier-1 capital
adequacy was 11.8%, well above RBI’s requirement of total capital adequacy of 9.0% and
Tier-1 capital adequacy of 6.0%. The above capital adequacy takes into account the impact
Asset quality
At March 31, 2009, the Bank’s net non-performing asset ratio was 1.96%.During the year the
Dividend on equity shares The Board has recommended a dividend of Rs. 11 per equity
share(equivalent to US$ 0.43 per ADS) for FY2009. The declaration and
42
STATE BANK OF INDIA
payment of dividend is subject to requisite approvals. The record/book closure dates will be
ANK OF INDIA
Overseas banking subsidiaries
ICICI Bank Canada saw an increase of about CAD 1.75 billion in term deposits during
FY2009 while its customer accounts increased from about 200,000 at March 31, 2008 to over
280,000 at March 31, 2009. ICICI Bank Canada continued to maintain liquidity of about CAD
850.0 million. ICICI Bank Canada’s profit after tax for FY2009 was CAD 33.9 million. ICICI
Bank Canada’s capital position continued to be strong with a capital adequacy ratio of 19.9%
at March 31, 2009.ICICI Bank UK saw an increase of about USD 1.80 billion in retail term
deposits during FY2009 due to which the proportion of retail term deposits in total deposits
increased from 16% at March 31, 2008 to 58% at March 31, 2009. ICICI Bank UK’s customer
base increased from about 210,000 at March 31, 2008 to over 310,000 customers at March
31, 2009.ICICI Bank UK continued to maintain liquidity of about USD 1.0 billion.
After accounting for the gains on buyback of bonds and mark-to-market and impairment
provisions on the investment portfolio, ICICI Bank UK’s profit after tax for FY2009 was USD
6.8 million. ICICI Bank UK’s capital position continued to be strong with a capital adequacy
Insurance subsidiaries
ICICI Prudential Life Insurance Company (ICICI Life) maintained its market leadership in the
private sector with an overall market share of 11.8% based on retail new business weighted
received premium during April 2008-February 2009. ICICI Life’s total premium increased by
43
STATE BANK OF INDIA
13% to Rs.15,356 crore (US$ 3.0 billion) in FY2009. ICICI Life’s renewal premium increased
by 61%, reflecting the long term sustainability of the business.ICICI Life’s unaudited New
ANK OF INDIA
Business Profit (NBP) in FY2009 was Rs. 1,004crore (US$ 198 million). Due to the business
set-up and customer acquisition costs, which are not amortised, and reserving for actuarial
liability, ICICI Life’s statutory accounting results reduced the consolidated profit after tax of
ICICI Bank by Rs. 577 crore (US$ 114 million) in FY20091(compared to Rs. 1,032 crore
(US$ 203 million) in FY2008). The expense ratio has decreased from 14.9% in FY2008 to
11.8% in FY2009. Assets held at March 31, 2009 were Rs. 32,788 crore (US$ 6.5 billion)
compared to Rs. 28,578 crore (US$ 5.6 billion) at March 31, 2008.
leadership in the private sector with an overall market share of 11.7% during April 2008-
3,457 crore (US$ 682 million) in FY2009.ICICI General’s profit after tax for FY2009 was Rs.
Consolidated profit after tax of the Bank increased by 18% from Rs. 636 crore (US$ 125 million) in
Q4-2008 to Rs. 748 crore (US$ 147 million) in Q4-2009 and by 5% from Rs. 3,398 crore (US$ 670
Summary Profit and Loss Statement (as per unconsolidated Indian GAAP accounts)
44
-Treasury income 164 443 815 214
Less:-
agents (DMAs)
1. Net of premium amortisation on government securities of Rs. 240 crore in Q4-2008, Rs. 898 crore in
FY2008, Rs. 162 crore in Q4-2009 and Rs. 725 crore in FY2009.
2. Represents commissions paid to direct marketing agents (DMAs) for origination of retail loans. These
Assets
45
Advances 225,616 218,311
Liabilities
STATE
OtherBANK OF INDIA
liabilities 22,145 18,265 ICICI BANK
46
ANK OF INDIA
Total 399,795 379,301
All financial and other information in this press release, other than financial and other
basis for ICICI Bank Limited only unless specifically stated to be on a consolidated basis for
ICICI Bank Limited and its subsidiaries. Please also refer to the statement of audited
unconsolidated, consolidated and segmental results required by Indian regulations that has,
along with this release, been filed with the stock exchanges in India where ICICI Bank’s
equity shares are listed and with the New York Stock Exchange and the US Securities
Exchange Commission, and is available on our website www.icicibank.com. Except for the
historical information contained herein, statements in this release which contain words or
phrases such as 'will', ‘expected to’, etc., and similar expressions or variations of such
involve a number of risks, uncertainties and other factors that could cause actual results,
opportunities and growth potential to differ materially from those suggested by the forward-
looking statements. These risks and uncertainties include, but are not limited to, the actual
growth in demand for banking and other financial products and services in the countries that
we operate or where a material number of our customers reside, our ability to successfully
implement our strategy, including our use of the Internet and other technology, our rural
expansion, our exploration of merger and acquisition opportunities, our ability to integrate
recent or future mergers or acquisitions into our operations and manage the risks associated
with such acquisitions to achieve our strategic and financial objectives, our ability to manage
the increased complexity of the risks we face following our rapid international growth, future
47
STATE BANK OF INDIA ICICI BANK
levels of impaired loans, our growth and expansion in domestic and overseas markets, the
adequacy of our allowance for credit and investment losses, technological changes,
ANK OF INDIA
investment income, our ability to market new products, cash flow projections, the outcome of
any legal, tax or regulatory proceedings in India and in other jurisdictions we are or become a
party to, the future impact of new accounting standards, our ability to implement our dividend
policy, the impact of changes in banking regulations and other regulatory changes in India
and other jurisdictions on us, including on the assets and liabilities of ICICI, a former financial
institution not subject to Indian banking regulations, the bond and loan market conditions and
availability of liquidity amongst the investor community in these markets, the nature of credit
spreads, interest spreads from time to time, including the possibility of increasing credit
spreads or interest rates, our ability to roll over our short-term funding sources and our
exposure to credit, market and liquidity risks as well as other risks that are detailed in the
reports filed by us with the United States Securities and Exchange Commission. ICICI Bank
I have taken two bank one from Public Sector Second from Privet Sector.
48
STATE BANK OF INDIA ICICI BANK
ANK OF INDIA
Statement of problem
SBI and ICICI want to know about the customer perception about the investment.
➢ To find out what kind of service provide by the competitors in advance product &
investment
policy.
To find out the need of the customer and hence formulate the strategy to level the
49
STATE BANK OF INDIA ICICI BANK
ANK OFINDIA
How the products & investments are helping the customer.
To find out the need of the customer and introduce new product & investment or
Icici bank are facing US recession that’s way his loose profitability.
Due to this bad news icici bank want to mantain customer loyalty.
To find out the need of the customer and introduce new product & investment or
Research objectives
Summer Internship Project gives a practical exposure and helps in acquiring the on road
skills.
50
ICICI BANK
STATE BANK OF INDIA
First and foremost objective is to find out the reasons for using of Advance Product
ANK OF INDIA
To find out the services that other bank given to their customer.
To sort out the prospective leads from the data I have collected through the survey.
To build the relationship with the customers and to follow up them, make sure that
To get more references from the customers and generate new leads by following a
chain process.
To find out the customer awareness on booming Advance Product market and to find
51
STATE BANK OF INDIA ICICI BANK
To make the customer aware of the benefits of the product and convince him to go for
The geographical scope of the study is restricted to Delhi & NCR only with sample
All the analysis and suggestions are based on the analysis of the both primary and
secondary data.
There fore the scope of the study revolves around the following aspects:-
· Consumer awareness about Advance Product scheme & Share and its benefit.
· Aware the Bank about the customer problems, especially in case of Share
Marker.
52
STATE BANK OF INDIA ICICI BANK
Research methodology
Research methodology is a methodology for collecting all sorts of information & data
ANK OF INDIA
pertaining to the subject in question. The objective is to examine all the issues involved &
conduct situational analysis. The methodology includes the overall research design, sampling
procedure & fieldwork done & finally the analysis procedure. The methodology used in the
study consistent of sample survey using both primary & secondary data. The primary data
has been collected with the help of questionnaire as well as personal observation book,
magazine;
journals have been referred for secondary data. The questionnaire has been drafted &
Sample Size:
Sample of 2000 people was taken into study, and their data was collected
Sampling Technique:
Data Collection:
Questionnaire
53
STATE BANK OF INDIA ICICI BANK
Data Analysis:
After data collection, I’m able to analyze customer’s views, ideas and opinions related
Data Interpretation:
Bar graphs, and also using quantitative techniques (by using these techniques)
The data thus collected were classified according to the categories, counting sheets &
the summary tables were prepared. The resultant tables were one dimensional, two
dimensional.
Out of the total respondents, the respondents who responded logically were taken
into account while going into statistical details & analysis of data. The tools that have
been used for analyzing data & inference drawing are mainly statistical tools like
54
ICICI BANK
As per questionnaire and market surveys I have find out different responses from different
people. According to their responses I analyze the findings and draw certain remarks.
Analysis of data
( ) No. of People
SBI 60 % (1200)
ICICI 33 % (660)
HDFC 5% (100)
OTHER 2% (40)
It has been observed that approximately 60% correspondents are using the service of SBI for
their daily transaction, around 33% of people are using ICICI Bank for their transaction and
only 5% & 2% of people are using HDFC & other Bank service respectively Delhi & NCR. It
also shows that SBI have the highest market position in Delhi & NCR as per my sample.
55
STATE BANK OF INDIA ICICI BANK
NO 15% (300)
ANK OF INDIA
Total No. of People 2000
From the above data it is clear that most of the customers (around 85%) of Delhi & NCR
have the idea about the product & services of SBI, the rest 15% have the idea about the
product they are using. In this 15% most of the people are from typical rural area (Farmers).
Q3. If yes are you aware of the advance products (Loan segments) of SBI?
YES 95%(1900)
NO 5% (100)
It is clear that most of the people have the idea about the advance product of SBI. Almost all
the 95% people who have the idea about the advance product are the user of SBI product &
service.
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STATE BANK OF INDIA ICICI BANK
HDFC 2% (40)
OTHER 1% (20)
According to my sample size 60% of people prefer SBI for investment, but some people
Q5. If you have two option ICICI or SBI for INVESTMENT money in equity which bank
Most of the people said that they prefer SBI because of the transparency and customer feel
secured for any kind of investment product. SBI is a largest bank in India.
57
STATE BANK OF INDIA ICICI BANK
ANK OF INDIA
ULIP 47% (846)
MF 15% (270)
OTHER 8% (144)
From the sample size 85% of people are using the SBI ULIP product. From the 1800 people
47% of people took life insurance from SBI. 20% of people took MF , 15% of people took
from SBI. Some of the customer took 2 type of loan from SBI like both car & educational loan
and home & car loan. 10% of people took personal loan.
Q7. What do you feel about the services providing by SBI and ICICI in advance
product?
SBI ICICI
SATISFACTORY 2% 1%
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STATE BANK OF INDIA ICICI BANK
From this it is clear that the service provide by SBI in its advance product is good in between
the customer. All of them satisfy with the product provide by SBI. 55% of people said that the
ANK OF INDIA
service provide by SBI is good & 43% said it is excellent & just 2% of people said that it is
satisfactory. For ICICI 69% people said good & 30% is excellent & Just 1% said satisfactory.
Q8. Which Bank you would like to choose for investment your money.
SBI 50%(1000)
ICICI 40%(800)
OTHER 10%(200)
TOTAL 2000
According to my sample size 50%of people prefer SBI for INVESTMENT, but some people
prefer ICICI 40% and OTHER Bank 10% for invest money because they think SBI is trustful
bank.
EQUITY 2%(40)
ULIPs 15%(300)
SEVING 5%(100)
FIXDEPOSIT 30%(600)
59
STATE BANK OF INDIA ICICI BANK
INSURENCE 30%(600)
OTHER 1%(20)
TOTAL 2000
ANK OF INDIA
Most of People in Delhi & NCR want to invest their money insurence, fixdeposit, ulips
and real state. just 2% people want to invest in SHARE Market .Because lack of
Findings
Conclusion
PROJECT Findings :
From this project it is found that SBI advance product having the 1st place in the
market at Delhi & NCR, there is a great opportunity to compete with ICICI Bank & to
retain its customer by fulfilling the requirement of customer in SBI and ICICI advance
product.
It has been observed that approximately 85% correspondents are using advance
product of SBI and 15% are not using any type of advance product of SBI in Delhi &
NCR.
All of SBI customers are satisfied with the services provided by the bank.
60
STATE BANK OF INDIA ICICI BANK
Most of the customers at Delhi & NCR prefer to take loan from SBI. Approximately
43% of advance product users said that the service of SBI in advance product is
excellent.
ANK OF INDIA
A response from customer care is so clear & good.
Many customers have no time to call customer care so that they are not able to know
Government employees are more concern than private employees for advance
product.
Biggest problem people don’t invest their money in Share due to lack of
knowledge
People want securities that’s why choose SBI than ICICI bank
TRANSPARENCY
QUICK PROCESSING
TRANSPARENCY
QUICK PROSESSING
61
STATE BANK OF INDIA ICICI BANK
Both should more concern about physical verification rather than phone verification so
Advance product selling agents must not give any type of wrong information
SBI customer care should more concern about the fastest settlement of customer
Before deducting or charging any monetary charge SBI & ICICI must consult with
customer.
Agents should be trained, well educated & proper trained to convince the people
It is the duty of the bank to disclose all the material facts regarding advance product,
SBI and ICICI must take feedbacks of customers regarding features & services.
62
STATE BANK OF INDIA ICICI BANK
( Namrata Das )
ANK OF INDIA
Education loan should be providing to private college also which is not under AICTE
( Pinaki Bal )
( Gopinath Mahapatra )
Agents should be trained, well educated & proper trained to convince the people
(P.Anish Nath)
(Joytirmaya Behera)
(Ritu singh)
63
STATE BANK OF INDIA ICICI BANK
Conclusion
From the analysis part it can be conclude that customers have a good respond towards SBI
ANK OF INDIA
advance products in Delhi & NCR . SBI is in 1st position having large number of customers &
providing good services to them. The bank has a wide customer base, so the bank should
In present scenario SBI is the largest advance product issuer in India. Within a very short
period of time the achievement made by SBI is excellent, what a normal bank cannot expect,
but it is being done by SBI. It happens due to employee dedication towards the organization,
· Customer retention
Apart from all the above, SBI believe in providing good customer services to their customers
64
ICICI BANK
STATE BANK OF INDIA
Questionnaire
ANK OF INDIA
Name - _____________________________________
Occupation-__________________________________
a) SBI
b) ICICI Bank
c) HDFC Bank
Q. Are you aware of products & services provided by SBI and ICICI?
a) YES
b) NO
a) YES
b) NO
65
STATE BANK OF INDIA ICICI BANK
a) SBI
ANK
b)OF INDIA
ICICI Bank
c) HDFC Bank
Q. If you prefer SBI or ICICI for INVESTMENT than what will you concern before
investment ?
__________________________________________________________________________
______
__________________________________________________________________________
______
__________________________________________________________________________
______
_____________________________________________________.
66
STATE BANK OF INDIA ICICI BANK
b) Insurance
c) Mutual Fund
d) Equity
Q. What do you feel about the services providing by SBI or ICICI in advance product?
a) Both Bad
d)Both good
Q. Which features you like most in investment segments of SBI and ICICI?
a) Various Product
b) Attractive ROI
c) Transparency
e) Strong capital
f) Big bank
67
STATE BANK OF INDIA ICICI BANK
Q. Any suggestion you want to give for the betterment of SBI and ICICI advance
product.
ANK OF INDIA
__________________________________________________________________________
______
__________________________________________________________________________
______
__________________________________________________________________________
______
___________________________________________________________.
68
STATE BANK OF INDIA ICICI BANK
Bibliography:
ANK OF INDIA
Text Books:
Solomon, Michael R. (2002), Consumer Behavior: Buying, Having, Being. 5th Ed.
Internet:
www.google.co.in
www.sbi.com
www.sbi.co.in
www.bnet.com
69