Professional Documents
Culture Documents
I the undersigned solemnly declare that the report of the project work entitled , is based my own work
carried out during the course of my study under the supervision of I assert that the statements made and
conclusions drawn are an outcome of the project work. I further declare that to the best of my knowledge and
belief that the project report does not contain any part of any work which has been submitted for the award
of any other degree/diploma/certificate in this University or any other University.
BATCH : 2020-2022
(Dr. Abdul Kalam Technical University, Lucknow, Uttar Pradesh)
Submitted To : Submitted By :
Prof. Dr. Puneet Kumar
Vivek Sharma Roll No: 2002160700124
IIMT College of Engineering, Greater Noida
Knowledge Park – III, Greater Noida
ACKNOWLEDGE
I would like to acknowledge the contributions of those who assisted in the
preparation of this report.
Before we get into this report. I would like to thanks all the people who are a part
of this report and have given their unending contribution from start to end of this
report.
I would like to thank faculty Dr. Puneet Kumar for providing the required
guidance in process of preparing the report. I would also like to express my deep
regards and gratitude to the HOD sir Dr. R.K TOMAR SIR.
I would like to express my gratitude towards my parents for their kind co-operation
and encouragement which helped me in completion of this report.
I have taken lots of efforts in this report. However, it would not have been possible
without the kind support and help of many individuals and organizations. I would
like to extend my sincere thanks to all of them.
CERTIFICATE
Co-ordinator H.O.D
ON
BATCH : 2020-2022
Submitted To : Submitted By :
The Indian banking industry started taking shape after India‟s independence in 1947. Though the
Indian banking industry can be traced as far back as 1806 with the establishment of Bank of
Bengal, the industry was in a state of turmoil.
Under the British influence, Calcutta witnessed a surge in trading activities, giving rise to a
number of banking establishments during the period. Several banks, set up in order to finance
trading, went out of business. For instance, Union bank, formed by Indian merchants, failed due
to economic recession during 1848-49 resulting in depositors losing money. Such events resulted
in shifting the reigns of the industry into the hands of Europeans till the early twentieth century.
From 1906 to1911, several banks were set up based on the principles of the Swadesi movement.
The movement inspired Indian businessmen and politicians to set up banks for the Indian
community and many new banks were launched to promote trade and finance in communal
groups. Some of the prominent ones among these are Bank of India, Corporation Bank, Bank of
Baroda, Indian bank, Canara Bank, and Central bank of India.
Bank of Bengal, along with its sister banks, Bank of Bombay and Bank of Madras, set up by
British East India Company, merged in 1921 to give birth to Imperial bank of India, now known
as State bank of India.
During 1914-1945, India went through several ups and downs politically and economically and
the effects were felt in the banking sector too. The World Wars disrupted banking activities of
the nation and almost 94 banks failed during this period. After 1947, however, banking activities
flourished.
After the partition of India, the government toook drastic steps to regulate the banking industry.
For example, in 1948, additional powers and authority were vested in the Reserve bank of India
to monitor the functioning of the entire banking system. The passing the Banking regulation act
in 1949, empowered RBI to further regulate, inspect, and control Indian banks.
The nationalization and liberalization of banks 1969 and 1991 respectively also boosted the
development of the Indian banking sector. Nationalization resulted in 91% of government
holding in the banking industry and liberalization paved the path for private players to participate
in the industry. As a result, banks like Oriental bank of Commerce, HDFC bank, ICICI bank, and
AXIS bank came into being. Foreign banks too were permitted to set up their offices in India.
The rationalization of FDI norms in 2002 also allowed foreign players to acquire stakes in Indian
banks.
These banks implemented innovative forms of banking like ATMs, mobile banking, phone
banking, internet banking, and debit/credit cards. The private players constantly improved
services in order to retain customers and win the severe competition which had become a feature
of the Indian banking industry.
Currently, private banks are going through a series of mergers and acquisitions and public sector
banks are shrinking in the form of manpower, equity, and non-performing assets.
The public sector banks have been grappling with attrition which surfaced after the Voluntary
Retirement Scheme was announced. The dilution of equity from 51% to 33% has opened up
opportunities for takeovers.
The Indian banking system, however, proved resilient to shocks arising out of the global
financial recession. In terms of quality of assets, the Indian banking players have come out clean
with strong and transparent balance sheets compared to their counterparts in other nations.
Following the financial crisis, new deposits made their way towards public sector banks.
According to RBI's 'Quarterly Statistics on Deposits and Credit of Scheduled Commercial
Banks: September 2009', nationalized banks, as a group, accounted for 50.5% of the aggregate
deposits, while State Bank of India (SBI) and its associates accounted for 23.8%. The share of
other scheduled commercial banks, foreign banks and regional rural banks in aggregate deposits
were 17.8%, 5.6%, and 3%, respectively.
Ever since US declared recovery from the global financial crisis, the confidence of non-resident
Indians (NRIs) in the Indian economy has revived again. NRI fund inflows increased since April
2009 and touched US$ 45.5 billion on July 2009, as per the RBI's February bulletin. Most of this
has come through Foreign Currency Non-resident (FCNR) accounts and Non-resident External
Rupee Accounts. India's foreign exchange reserves rose to US$ 284.26 billion as on January 8,
2010, according to the RBI's February bulletin.
The report also found that scheduled commercial banks served 34,709 banked centers. Of these
centers, 28,095 were single office centers and 64 centers had 100 or more bank offices.
The expansion plans are self evident from the example of SBI, which is adding 23 new branches
abroad, bringing its foreign-branch network number to 160 by March 2010. This will cement its
leading position as the bank with the largest global presence among local peers.
In its platinum jubilee year, the RBI, the central bank of the country, in a notification
issued on June 25, 2009, said that banks should link more branches to the National
Electronic Clearing Service (NECS). NECS was introduced in September 2008 for centralized
processing of repetitive and bulk payment instructions. Currently, a little over 26,000 branches of
114 banks are enabled to participate in NECS.
Banking in India originated in the first decade of 18th century with The General Bank of India
coming into existence in 1786. This was followed by Bank of Hindustan. Both these banks are
now defunct. The oldest bank in existence in India is the State Bank of India being established
as "The Bank of Bengal" in Calcutta in June 1806. A couple of decades later, foreign banks like
Credit Lyonnais started their Calcutta operations in the 1850s. At that point of time, Calcutta
was the most active trading port, mainly due to the trade of the British Empire, and due to
which banking activity took roots there and prospered. The first fully Indian owned bank was
the Allahabad Bank, which was established in 1865.
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. The Reserve Bank of India formally took on the responsibility of
regulating the Indian banking sector from 1935. After India's independence in 1947, the
Reserve Bank was nationalized and given broader powers.
OBJECTIVE OF THE PROJECT
To find the recent happening in this industry and relate it to draw suitable inferences.
Bring out TOP 2 Banks of Indian Banking Industry on the basis of relevant parameters.
Analyze the financial statement of both the companies and discover the various region
where one overcomes the other and try to find reasons for that.
Analyze the Brand lines and try to explore the segmentation, targeting and positioning
policies of these TOP 2 players.
Evaluate the current scenario of the industry as well as estimating the chances of entry of
new players by the help of PORTER FIVE FORCE ANALYSIS.
Study the management, working style and other organizational parameters of the TOP 2
players.
STRENGTH
Bank lending has been a significant driver of GDP growth and employment(The growth
of services, including banking and insurance, improved to 9.9 per cent in 2010-11 from
9.2 per cent in the previous fiscal. articles.economictimes.indiatimes.com)
The vast networking & growing number of branches & ATMs. Indian banking system
has reached even to the remote corners of the country.
Policy makers have made some notable changes in policy and regulation to help
Strengthen the sector. These changes include strengthening prudential norms,
Enhancing the payments system and integrating regulations between commercial
and Co -operative banks.
They have a combined network of over 53,000 branches and 17,000 ATMs.
According to a report by ICRA Limited, a rating agency, the public sector banks hold
over 75 percent of total assets of the banking industry, with the pr ivate and foreign
banks holding 18.2% and 6.5% respectively.
In terms of quality of assets and capital adequacy, I ndian banks are considered to
have clean, strong and transparent balance sheets relative to other banks in
comparable economies in its region.
Currently, India has 81 scheduled commercial banks (SCBs) - 27 public sector banks
(that is with the Government of India holding a stake), 22 private banks (these do not
have government stake; they may be publicly listed and traded on stock exchanges) and
32 foreign banks.
WEAKNESS
OPPORTUNITY
Given the demographic shifts resulting from changes in age profile and household
income, consumers will increasingly demand enhanced institutional capabilities and
service levels from banks.
With the growth in the Indian economy expected to be strong for quite some time
especially in its services sector-the demand for banking services, especially retail
banking, mortgages and investment services are expected to be strong
Reach in rural India for the private sector and foreign banks.
The market is seeing discontinuous growth driven by new products and services that
include opportunities in credit cards, consumer finance and wealth management on
the retail side, and in fee- based income and investment banking on the wholesale
banking side. These require new skills in sales & marketing, credit and operations.
Foreign banks committed to making a play in I ndia will need to adopt alternative
approaches to win the “race for the customer” and build a value- creating customer
franchise in advance of regulations potentially opening up post 2009. At the same
time, they should stay in the game for potential acquisition opportunities as and when
they appear in the near term. Maintaining a fundamentally long-term value-creation
mindset.
THREATS
PEST analysis of any industry investigates the important factors that affect the industry
and influence the companies operating in the sector. PEST stands for Political, Economic,
Social and Technological analysis. The PEST Analysis is a tool to analyze the forces that
drive the industry y and how those factors can influence the industry.
POLITICAL FACTORS:
Government and RBI policies affect the banking sector. Sometimes looking into the
political advantage of a particular party, the Government declares some measures to their
benefits like waiver of short-term agricultural loans, to attract the farmer‟s votes. By
doing so the profits of the bank get affected. Various banks in the cooperative sector are
open and run by the politicians. They exploit these banks for their benefits. Sometimes
the government appoints various chairmen of the banks. Various policies are framed by
the RBI looking at the present situation of the country for better control over the banks.
BUDGET MEASURES:
Agriculture Credit
To get the best from their land, farmers need access to affordable credit. Banks have been
consistently meeting the targets set for agriculture credit flow in the past few years. For the year
2011-12, The target raised of credit flow to the farmers from `3,75,000 crore this year to
`4,75,000 crore in 2011-12. Banks have been asked to step up direct lending for agriculture and
credit to small and marginal farmers. (Budget 2011-2012 Speech of Pranab Mukherjee
Minister of Finance February 28, 2011)
FDI LIMIT
In the private banking sector of India, FDI is allowed up to a maximum limit of 74 % of the paid-
up capital of the bank.
ECONOMIC FACTORS :
Banking is as old as authentic history and the modern commercial banking are traceable to
ancient times. In India, banking has existed in one form or the other from time to time. The
present era in banking may be taken to have commenced with establishment of bank of Bengal in
1809 under the government charter and with government participation in share capital.
Allahabad bank was started in the year 1865 and Punjab national bank in 1895, and thus, others
followed. Every year RBI declares its 6 monthly policy and accordingly the various measures
and rates are implemented which has an impact on the banking sector. Also the Union budget
affects the banking sector to boost the economy by giving certain concessions or facilities. If in
the Budget savings are encouraged, then more deposits will be attracted towards the banks and in
turn they can lend more money to the agricultural sector and industrial sector, therefore, booming
the economy. If the FDI limits are relaxed, then more FDI are brought in India through banking
channels.
Indian economy has registered a growth of more that 8.5 per cent for last three year and is
expected to maintain robust growth rate as compare to other developed and developing countries.
Banking Industry is directly related to the growth of the economy. The contributions of various
sectors in the Indian GDP for 2010-2011 are as follows: Agriculture: 17% Industry: 29% Service
Sector: 54% It is great news that today the service sector is contributing more than half of the
Indian GDP. It takes India one step closer to the developed economies of the world. Earlier it
was agriculture which mainly contributed to the Indian GDP. The Indian government is still
looking up to improve the GDP of the country and so several steps have been taken to boost the
economy. Policies of FDI, SEZs and NRI investment have been framed to give a push to the
economy and hence the GDP.
MONETARY POLICY :
Increased from 5.00% to 5.50% wef 13/02/2010; and then again to 5.75% wef 27/02/2010; and
now to 6.00% wef 24/04/2010
Statutory Liquidity Ratio (SLR) 24%(w.e.f. 18/12/2010)
Decreased from 25% which was continuing since
07/11/2009
Repo Rate 8.50% (w.e.f.25/10/2011) Increased from 8.25% which was continuing since
16/09/2011
Reverse Repo Rate 7.50% (w.e.f. 25/10/2011) Increased from 7.25% which was continuing
since 16/09/2011.
INFLATION RATES:
Inflation represents a rise in general level of prices of goods and services over a period of
time. It leads to an erosion in the purchasing power of money. Resultantly, each unit of
currency buys fewer goods and services Different fiscal and monetary policies have
curbed. The inflation rate in India was last reported at 9.36 percent in nov of 2011
Socio culture factors also affect the business. They show in which people behave in country.
Socio-cultural factors like taboos, customs, traditions, tastes, preferences, buying and
consumption habit of people, their language, beliefs and values affect the business. Banking
industry is also operates under this social environment and it is also affect by this factor. These
factor are changing continuously people‟s life style, their behavior, consumption pattern etc. is
changing and also creating opportunities and threat for banking industry. There are some socio-
culture factors that affect banking inIndia have been analyzed below.
Attitude of people of India is changing. Now, younger generation wants to remain separate from
their parents after they get married. Joint families are breaking up. There are many reasons
behind that. But banking sector is positively affected by this trend. A family need home
consumer durables likefreeze, washing machine, television, bike, car, etc.. so, they demand for
these products and borrow from banks. Recently there is boost in housing finance and vehicle
loans. As they do not have money they go for installments. So, banks satisfy nuclear families
wants.
Life style of India is changing rapidly. They are demanding high class products. They have
become more advanced. People want everything car, mobile, etc.. what their fore father had
dreamed for. Now teenagers also have mobile and vehicle. Even middle class people also want to
have well furnished home, television, mobile, vehicle and this has opened opportunities for
banking secter to tap this change. Every thing is available so it has become easy to purchase
anything if you do not have lump sum.
POPULATION :
Increase in population is one of he important factor, which affect the private sector banks. Banks
would open their branches after looking into thepopulation demographics of the area. Percentage
of deposit in any branches of banks depends upon the population demographic of that area. The
population of India is about 121 cores is expected to reach about 140 cores in 2018. About 70%
of population is below 35years of age. They are in the prime earning stage and this increase the
earning of the banks. Total Deposits mobilized by the Private Sector Banks increased from Rs,
2,52,335 crore as on 31st March 2009 to Rs. 3,12,645 crore as on 31st March 20010.
LITERACY RATE:
Literacy rate in India is very low compared to developed countries. Illiterate people hesitate to
transact with banks. So, this impacts negatively on banks. But there is positive side of this as
well i.e. illiterate people trust more on banks to deposit their money, they do not have market
information. Opportunities in stocks or mutual funds. So, they look bank as their sole and safe
alternative.
TECHNOLOGICAL FACTORS:
TECHNOLOGY IN BANKS
Technology plays a very important role in bank‟s internal controlmechanisms as well as services
offered by them. It has in fact given new dimensions to the banks as well as services that they
cater to and the banks are enthusiastically adopting new technological innovations for devising
new products and services.
ATM
Today banks are also using SMS and Internet as major tool of promotions and giving great utility
to its customers. For example SMS functions through simple text messages sent from your
mobile. The messages are then recognized by the bank to provide you with the required
information. All these technological changes have forced the bankers to adopt customer-based
approach instead of product-based approach Technology advancement has changed the face of
traditional banking systems. Technology advancement has offer 24X7 banking even giving faster
and secured service.
It is the buzzword today and every bank is trying to adopt it is the centralize banking platform
through which a bank can control its entire operation the adoption of core banking solution will
help bank to roll out new product and services.
The nature of competition in the industry in large part determines the content of strategy,
especially business level strategy .based it is on the fundamental economics of the industry, the
very profit potential of an industry is determine by competition interaction. Where these
interactions are intense, profit tends to be whittled away by the activities of competing.
Porter‟s model is based on the insight that a corporate strategy should meet the opportunities and
threats in the organizations external environment. Especially, competitive strategy should base
on and understanding of industry structures and the way they change. Porter has identified five
competitive forces that shape every industry and every market. These forces determine the
intensity of competition and hence the profitability and attractiveness of an industry. The
objective of corporate strategy should be to modify these competitive forces in a way that
improves the position of the organization. Porter‟s model supports analysis of the driving forces
in an industry. Based on the information derived from the Five Forces Analysis, management can
decide how to influence or to exploit particular characteristics of their industry.
Bargaining power of
suppliers is very low
Nature of suppliers
Few alternatives
RBI rules and
regulations
Suppliers are not
concentrated
forward integration
Threat of competitors
Threat of substitute
Barriers to entry
Large no of banks High
market growth rate Non banking financial
Product differentiation very sector increasing rapidly
difficult Licensing Low switching costs
Deposits in posts
requirement Undifferentiated services
Stock Market
High fixed cost High exit
barriers
Bargaining power of
consumer very high
Large no. of
alternatives
Low switching costs
Undifferentiated
services
Full information
about the market
Rivalry among Competing Firms
5. Undifferanciated services
Almost every bank provides similar services. Every bank tries to copy each other services
and technology which increase level of competition.
6. High fixed cost
7. High exit barriers
High exit barriers humiliate banks to earn profit and retain customers by providing world
class services.
There are low regulations exist to start a new business due lpg policy adopted by India.
Banking industry is governed by Reserve Bank of India. Reserve Bank of India is the
authority to take monetary action which leads to direct impact on circulation of money in the
Economy. The rules and regulation lay down by RBI.
Suppliers of banks are depositors .these are those people who have excess money and
prefer regular income and safety. In banking industry suppliers have low bargaining power.
1. Nature of suppliers
Suppliers of banks are those people who prefer low risk and those who need regular income and
safety as well. Banks best place for them to deposits theirs surplus money.
2. Few alternatives
Banks are subject to rbi rules and regulations .bank have to behave in a way that rbi wants. So rbi
takes all decisions related to interest rates . this reduce bargaining power of suppliers .
4. Suppliers not concentrated
Banking industry suppliers sure not concentrated. There are numerous with negligible
portion of offer .so this reduce their bargaining power .
BARGAINING POWER OF CONSUMERS
In today world, Customer is the King. Banks offers different services According to
clients need and requirement. They offer loans at Prime Lending Rate (PLR) to their trust worthy
clients and higher rate to others clients.
Customers of banks are those who take loans and uses services of banks. Customers have
high bargaining power. These are
1. Large no of alternatives
Customers have large no of alternatives, there are so many banks, which fight for same
pie. There are many non financial institutions like icici, hdfc, and ifci, etc. which has also jump
into these business .there are foreign banks , privet banks, co-operative banks and development
banks together with specialized financial companies that provides finance to customers .these all
increase preference for customers.
3. Undiffenciated service
Bank provide merely similar service there are no much diffracted in service provides by
different banks so, bargaining power of customers increase. They can not be charged for
differentiation.
Reserve Bank of India has laid out a stagnant rules and regulation for new entrant in
Banking Industry. We expect merger and acquisition in the banking industry in near future.
Hence, the industry is less porn of new competitor.
Barriers to an entry in banking industry no longer exist. So lots of privet and foreign
banks are entering in the market. Competitors can come from an industry to „disinter
mediate„bank product differentiation is very difficult for banks and exit is difficult. So every
bank strives to survive in highly competitive market so we see intense competitive can mergers
and acquisitions. Government policies are supportive to start new bank. There is less statutory
requirement needed to start a new venture? Every bank to tries to achieve economics of scale
through use of technology and selecting and training manpower .
There are public sector banks, private sector and foreign banks along with non banking
finance companies competing in similar business segments.
Every day there is one or the other new product in financial sector.
Banks are not limited to tradition banking which just offers deposit and lending. In addition,
today banks offers loans for all products, derivatives, ForEx, Insurance, Mutual Fund, Demit
account to name a few. The wide range of choices and needs give a sufficient room for new
product development and product enhancement.
Substitute products or services are those, which are different but satisfy the same set of
customers. In private banking industry following are the substitutes:
2. Post Office Products: Post office is also providing some service like fixed deposit
facility, saving account, recurring account etc. The interest rate of saving account is
higher than private banks. It is fully secured by the government so people who do not
want to take risk for them post office saving is good substitute.
3. Government Bond: Govt. Bond also attracts savings from the general public. It is less
risky and more secured as compare to savings in private banks.
4. Mutual Funds: Mutual funds are also now proving as good substitutes for banks. They
assure for providing high return with less time in comparison of banks. The
administrative expenses are also very low as compared to banks. Investment in Mutual
funds is more flexible than investment in banks.
5. Stock Market: People who are ready to bear risk and wants a high return on their
investment, stock market is a good substitute for them. Day by day investors are
moving towards stock market as interest rate in banks are decreasing. So now stock
market has proved as a big competitor for baking sector.
ICICI bank
SELECTION CRITERIA
CASA or Deposits
Investment
Advances
comparision chart
1200000
1000000
202017
800000 181206
Axis Title
600000
804116
400000 120893
631914
200000 285790
The evolution of State Bank of India can be traced back to the first decade of the 19th century. It
began with the establishment of the Bank of Calcutta in Calcutta, on 2 June 1806. The bank was
redesigned as the Bank of Bengal, three years later, on 2 January 1809. It was the first ever joint-
stock bank of the British India, established under the sponsorship of the Government of Bengal.
Subsequently, the Bank of Bombay (established on 15 April 1840) and the Bank of Madras
(established on 1 July 1843) followed the Bank of Bengal. These three banks dominated the
modern banking scenario in India, until when they were amalgamated to form the Imperial Bank
of India, on 27 January 1921.
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 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 Committee recommended
the formation of a state-partnered and state-sponsored bank.
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-associated banks
as its subsidiaries.
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 the planned economic
development.
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, well networked to cater
to its customers throughout India.
ATM Services
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 ATM-cum-
Debit (Cash Plus) card.
Subsidiaries
The State Bank Group includes a network of eight banking subsidiaries and several non-banking
subsidiaries. Through the establishments, it offers various services including merchant banking
services, fund management, factoring services, primary dealership in government securities,
credit cards and insurance.
The eight banking subsidiaries are:
State Bank of Bikaner and Jaipur (SBBJ)
State Bank of Hyderabad (SBH)
State Bank of India (SBI)
State Bank of Indore (SBIR)
State Bank of Mysore (SBM)
State Bank of Patiala (SBP)
State Bank of Saurashtra (SBS)
State Bank of Travancore
(SBT)
SEGMENTATION STRATEGY:
Demographics variables
Location
Business person
Salaried class (both govt. & private)
Age
Senior citizens
Major
Minor
TARGETING STRATEGY:
Corporate banking market: This market targets the industries & fulfills their financial needs.
Capital market : This segment is targeted on the long term needs of the individual as well as of
industries.
Retail banking market : this segment is for retail investors & provide them short term financial
credit for their personal, house hold needs.
POSITIONING STRATEGY:
SBI has positioned itself as a bank which gives higher standard of services through product
innovation for the diverse need of individual & corporate clients
Taglines: With you - all the way and Pure Banking. Nothing Else
DEPOSIT LOANS
ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution,
and was its wholly-owned subsidiary. ICICI's shareholding in ICICI Bank was reduced to 46%
through a public offering of shares in India in fiscal 1998, an equity offering in the form of
ADRs listed on the NYSE in fiscal 2000, ICICI Bank's acquisition of Bank of Madura Limited in
an all-stock amalgamation in fiscal 2001, and secondary market sales by ICICI to institutional
investors in fiscal 2001 and fiscal 2002. ICICI was formed in 1955 at the initiative of the World
Bank, the Government of India and representatives of Indian industry. The principal objective
was to create a development financial institution for providing medium-term and long-term
project financing to Indian businesses.
In the 1990s, ICICI transformed its business from a development financial institution offering
only project finance to a diversified financial services group offering a wide variety of products
and services, both directly and through a number of subsidiaries and affiliates like ICICI Bank.
In 1999, ICICI become the first Indian company and the first bank or financial institution from
non-Japan Asia to be listed on the NYSE.
After consideration of various corporate structuring alternatives in the context of the emerging
competitive scenario in the Indian banking industry, and the move towards universal banking,
the managements of ICICI and ICICI Bank formed the view that the merger of ICICI with ICICI
Bank would be the optimal strategic alternative for both entities, and would create the optimal
legal structure for the ICICI group's universal banking strategy. The merger would enhance value
for ICICI shareholders through the merged entity's access to low-cost deposits, greater
opportunities for earning fee-based income and the ability to participate in the payments system
and provide transaction-banking services. The merger would enhance value for ICICI Bank
shareholders through a large capital base and scale of operations, seamless access to ICICI's
strong corporate relationships built up over five decades, entry into new business segments,
higher market share in various business segments, particularly fee-based services, and access to
the vast talent pool of ICICI and its subsidiaries.
In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger of ICICI
and two of its wholly-owned retail finance subsidiaries, ICICI Personal Financial Services
Limited and ICICI Capital Services Limited, with ICICI Bank. The merger was approved by
shareholders of ICICI and ICICI Bank in January 2002, by the High Court of Gujarat at
Ahmedabad in March 2002, and by the High Court of Judicature at Mumbai and the Reserve
Bank of India in April 2002. Consequent to the merger, the ICICI group's financing and banking
operations, both wholesale and retail, have been integrated in a single entity.
SEGMENTATION STRATEGY:
Occupation
Senior citizens
Major
Minor
TARGETING STRATEGY:
Tailors its marketing campaigns to meet the needs of its target prospects.
POSITIONING STRATEGY:
Core proposition – ‘Hum hain na’ – trust, credibility, total financial solution provider
(brought about through its cross selling effort)
DIFFERENT PRODUCTS OF ICICI:
SAVINGS ACCOUNT
SAVINGS ACCOUNT
SAVINGS MAX ACCOUNT
PENSIONS SAVINGS BANK
ACCOUNT SALARY ACCOUNT
CURRENT ACCOUNT
REGULAR FD ACCOUNT
FIVE YEAR TAX SAVING FD ACCOUNT
DEMAT ACCOUNT
LOANS
Home Loan
Personal Loan
Car Loan
Two Wheeler Loan
Commercial Vehicle Loan
Loan Against Securities
Loan Against Gold
Farm Equipment Loan
Construction Equipment Loan
Office Equipment Loan
Medical Equipment Loan
Rural Educational Institute Finance
Customer Durable Loans
FINANCIAL RATIO ANALYSIS
P/E ratio: A valuation ratio of a company's current share price compared to its per-share
earnings.
Calculated as:
EPS: The portion of a company's profit allocated to each outstanding share of common
stock. Earnings per share serve as an indicator of a company's profitability.
Calculated as:
PAT
Shareholder’s equity
Debt equity ratio basically tells about the composition of the capital structure
that how much is the ratio of equity to debt
A high debt/equity ratio generally means that a company has been aggressive
in financing its growth with debt
CURRENT RATIO: A liquidity ratio that measures a company's ability to pay short-term
obligations.
Also known as "liquidity ratio", "cash asset ratio" and "cash ratio".
The higher the current ratio, the more capable the company is of paying its
obligations.
BOOK VALUE: A company's common stock equity as it appears on a balance sheet, equal to
total assets minus liabilities, preferred stock, and intangible assets such as goodwill. This is how
much the company would have left over in assets if it went out of business immediately.
Internal liability
Number of shares
DIVIDEND YIELD: A financial ratio that shows how much a company pays out in dividends
each year relative to its share price.In the absence of any capital gains, the dividend yield is the
return on investment for a stock. Dividend yield is calculated as follows:
RATIO ANALYSIS OF BOTH COMPANIES
EPS 49.68
116.07
Dividend yield
1.55% 1.63%
Current Ratio
0.11
0.04
http://www.moneycontrol.com
http://www.nirmalbang.com
articles.economictimes.indiatimes.com)
business.mapsofindia.com
www.allbankingsolutions.com/DATA.htm
www.rbi.org.in/
www.statebankofindia.com/
www.icicibank.com/
www.business-standard.com