A SYNOPSIS ON

A STUDY ON
A COMPARATIVE STUDY OF RETAIL BANKING
SERVICES IN SBI AND ICICI

SUBMITTED BY
ANJUM BEGUM
2146-20-672-042

UNDER THE GUIDANCE OF

U.Y.ANUPAMA
(ASSISTANT PROFESSOR)

PADALA RAMA REDDI COLLEGE OF COMMERCE & MANAGEMENT

(AFFILIATED TO OSMANIA UNIVERSITY)
HYDERABAD
2020-2022
 INTRODUCTION
Banking is the financial function which plays an important role not only for the
particular individual but also for the overall economy. With changing face of overall
economy the face of banking service is also changing now it has become more &
more attractive various newer functions has been added in the banking services to
attract more & more customers.

Earlier banking service is offered as ‘facility provider’ to customers to protect their

saving in the most effective mode. They were never concentrated on profit as a
business but with the changing time & with the highly growing economic condition
the role of banking is also been changed instead of only ‘Facility provider’ it has also
become a ‘profit maker’ with new attractive face Retail Banking in India is not a new
phenomenon. It has always been prevalent in India in Various Forms.

Retail Banking:

Retail Banking is nothing but dealing of commercial banks with individual customers,
both on liabilities and assets sides of the balance sheet.

Asset Side:
 Fixed, current/saving accounts.

Liabilities Side
 Mortgages, loans (e.g.: Personal, Housing, Auto & Education) Today’s retail
banking sector is characterized by three basic characteristics:
 Multiple Products (deposits, credit cards, insurance, investments and securities)
 Multiple channel of distribution (call centre, branch and internet)
 Multiple customer groups (consumer, small business and corporate)
The typical products offered in the Indian Retail Banking segment are housing loans,
consumption loans for purchase of durables, auto loans, credit cards and educational
loans. The loans are marketed under attractive brand names to differentiate the
products offered by different banks.
Banks are basically service-rendering institutions. The existence and success of banks
depend on their ability to meet the various needs and wants of the customers. The new
millennium has brought with it challenges as well as opportunities in various fields
of economic activities including banking. The banking sector in India has undergone
several changes in the areas of prudential, regulatory, disclosure and supervisory
norms. The financial reforms launched during the early 1990s have dramatically
changed the banking scenario in the country. New prudential norms, capital adequacy
prescriptions, identification of bad debts, provision requirements etc. were enforced
and interest rates were deregulated. As a result of these reforms, new private sector
banks were allowed entry into the market.

Many of these new private sector banks have brought them state-of-the-art technology
and lean structures. These new private sector banks have built a wide network of
branches, set superior standards in productivity, they introduced global best practices
and more importantly they have built durable competencies by attracting the best
manpower, and creating strong brand image in the financial market within a short
span of time. This forced the banks applying old banking practices to respond to the
new challenges with aggressive restructuring measures. On the other hand some of
these banks have not introduced innovative services, not set the superior standards in
productivity and even not shown their competencies so they have given indirect
benefit to private sector banks.

Today Banks was aggressively seeking to become the leader in the banking &
financial services space in India amongst the largest private banks in the retail-
banking segment. To implement the same, banks tapped the retail banking space by
offering various products and services. A decade before, it was tough to belief that
banking sector will be at a finger tip. Now it‘s possible. A mobile hand set with a
connection is the only instrument needed to make a gateway to your banking
transaction, the latest innovation of technology.

Apart from the Mobile Banking, including of SMS Banking, Net Banking and ATMs
are the major steps taken by the banks in India towards modernization. With all these
devices and systems, there is a complete freedom to experience. Check your account,
transfer your fund, make payments and what more, do anything of everything what
has been followed in physical banking since ages. But this times no standing for hours
in front of cash counter and no time boundation in withdrawing your own money.

The main aim behind this study is to judge the awareness of consumers about the
Private Banks offering Retail Banking Products & Services with the help of Axis
Bank, to understand the customers perception on the service delivery of the bank, to
study the major factors influencing their purchase decision as well as to find the
immediate competitors in the minds of consumer for loan as a retail product, to study
the services provided by Axis Bank and those which are being effectively utilized by
the customers and their performance, and to study the comparative influence of
various mediums of advertisements in creating awareness amongst the consumers.

Questionnaire survey was used as method data collection. And through this research
the overall customer perception towards these particular services can be concluded as
Good as well as satisfactory.
NEED OF THE STUDY

Retail banking generally refers to offering financial services, products related to

deposits and assets to individual customers for personal consumption. Banks
concentrate on various segments like professional, housewives, pensioner, children,
salaried class etc. Different types of product like recurring deposit, saving bank
deposits, fixed deposit, credit cards, and housing & consumer loans are offered by
banks.

The Retail Banking environment today is changing fast .The changing customer
demographics demands to create a differentiated application based on scalable
technology, improved service and banking convenience. Higher penetration of
technology and increase in global literacy levels has set up the expectations of the
customer higher than never before. Increasing use of modern technology has further
enhanced reach and accessibility.

 Rate of interest can be higher

 Less risk
 Smooth Asset Liability Management
 Cheap funds
 Increasing income of middle class
OBJECTIVES OF THE STUDY
 To study the make comparative analysis and interpretation of the service
quality dimension in the ICICI Bank and SBI banks
 To study the various products being offered in retail banking portfolio.
 To study the compare the performance of ICICI Bank and SBI Bank of India
in Hyderabad.
 To study the identify the impact of key service quality dimensions on overall
service quality of of ICICI Bank and SBI Bank.
 To study the identify the key service quality dimensions of ICICI Bank and
SBI Bank
SCOPE OF THE STUDY

 Term loans are always secured. They are secured specially by the assets
acquired using term loan funds. This is called primary security.
 The company’s current and future assets also generally secure term loans. This
is called secondary or collateral security. Also the lender may create either
fixed or floating charges against the firm’s assets.
 Fixed charges mean legal mortgage of specific assets .for creating a fixed
charge, then firm has to pay a heavy stamp duty which may be equal to 2 ½
per cent of the amount of loan. Floating charge is a general mortgage
(equitable mortgage) covering all assets. In this case, stamp duty is only ½
percent.
 Floating charge provides the firm with relative flexibility as it can deal with its
assets in the normal course of business without obtaining lender’s approval.
RESEARCH METHODOLOGY
SOURCE OF DATA

 Primary data – The main source for the primary data for the
project was questionnaires filled by the customers. The filled
up information was later analyzed to obtain the required
information.

 Secondary Data – The secondary data for the base of the

project is collected from intranet of the bank, internet, and
newspapers.

Research Method: Descriptive Research

Sampling Design: Non – probability sampling

Sampling Method: Convenience Sampling

Sampling Universe: Customers of SBI & ICICI

Data Collected: Primary and Secondary Data

Statistical Tools Used: Percentage Analysis

SAMPLING DESIGN

The study has used Non- Probability sampling design. Non- Probability
sampling involves deliberates selection of a particular unit of the
population for constituting a sample.

STATISTICAL TOOL

The study has used percentage analysis as a statistical tool for the analysis of data.

Percentage Analysis: To have a general idea on the opinion given by

the respondents a simple percentage analysis was carried out.

Percentage = Number of Responses * 100

Number of Respondents
LIMITATIONS OF THE STUDY:
 The scope of comparative study is limited to selected banks only not all the
private financial institutions.
 Time is a major constraint. As the project study was for a limited period only
the necessary information had been taken in to consideration.
 The area is restricted to Hyderabad only.
 Lack of in depth information from competitors point of view, in order to
maintain business secrecy.
 The study was conducted with the available data and the analysis made on it.
 BIBLIOGRAPHY
BOOKS :

 BANKING THEORY AND PRACTICE : DR. P.K SRIVASTAVA

 BANKING AND FINANCIAL SYSTEMS: G.SATYANARAYANA
 ANNUAL REPORTS OF SBI AND ICICI BANK LIMITED

WEBSITES :

 www.icicibank.com
 www.sbi.co.in
 www.google.com
 www.rbi.org.in
 www.worldwidejournals.com