Competitive practices used by Banks

Submitted By:
Submitted To:
Mayank Noniwal
Dr. Nidhi Srivastava
Rahul Tiwari
Firstly, we need to understand what are competitive practices for any bank.

1. Provide more interest on saving Account as compared to its competitor.

2. Provide better services on current account as compared to competitor.
3. Providing First-hand Knowledge of banking to Minors.
4. Provide minimum interest on loans.
5. Provide more good offers on credit cards.
6. Availability of more ATMs for customer.
7. Provide Core banking (Who can access his/her account from anywhere.) and many more.
 Market Share of Banks in India

SBI holds 25% Market

Share.
HDFC holds 4% Market
Share.
 COMPETITIVE PRACTICE OF HDFC AND SBI BANK

FEATURES HDFC BANK SBI BANK

Founded 1994 1806

Type Private Sector Public Sector

Headquarters Mumbai, India Mumbai, India

Number of branches Over 5,500 Over 22,000

ATM Network Over 16,000 Over 62,617

Revenue INR 157,263 Crores (2022) INR 316,021 Crores (2022)

Net Profit INR 36,961 Crores (2022) INR 31,675 Crores (2022)
 SAVING ACCOUNT COMPARISON OF HDFC AND SBI BANK
FEATURE HDFC BANK
Account Name HDFC Bank Savings Account
Minimum balance Depends on the type of
account
Interest Rate 3% p.a.
Debit card type Visa/Mastercard
Free transaction Depend on the type of account Varies based on the account
Internet banking Available
Additional information Personalized cheque book,
free NEFT/RTGS
transactions, international
debit card, wealth
management services
SBI BANK
SBI Bank Savings Account
Minimum Balance amount
Nil
2.7% p.a. less than 10.cr &
3% p.a. for more than 10.cr
Basic Rupay ATM-Debit
Card
type and location
Available
Nomination facility, free
passbook, e-statement,
loyalty program, overdraft
facility
 CURRENT ACCOUNT COMPARISON OF HDFC AND SBI BANK
FEATURES HDFC BANK CURRENT
ACCOUNT
Minimum balance Depends on the type of
location and account
Interest rate No interest is paid on current
accounts
ATM/Debit Card Available
Depends on the type of
Cash Deposit Limit
account and location
Free NEFT/RTGS
Online Transactions
transactions
Personalized cheque book,
international debit card,
Additional Features dedicated relationship
manager, trade and forex
services
Overdraft Facility Available
SBI BANK CURRENT
ACCOUNT
Average Monthly Balance
Rs.5000 (Feb 2021)
No interest is paid on
current accounts
Free ATM during First Year
No limit on Cash deposit
Free NEFT/RTGS
transactions
First 50 cheque will be
free, free monthly e-
statement, doorstep
banking services, trade and
forex services
Available
 CREDIT CARD COMPARISON OF HDFC AND SBI BANK
FEATURES HDFC BANK CREDIT
CARD
Varies based on the card
Annual Fee
type
Interest Rate 1.99% - 3.50% per month
Air miles, hotel discounts,
Travel Benefits travel insurance, lounge
access
Dining discounts, movie
Entertainment Offers tickets, entertainment
vouchers
Insurance Coverage Available on select cards
EMI facility, contactless
Additional Features payment, easy bill
payment
SBI BANK CREDIT
CARD
Varies based on the card
type
3.35% - 3.50% per month
Air miles, hotel discounts,
travel insurance, railway
benefits
Dining discounts, movie
tickets, entertainment
vouchers
Available on select cards
Balance transfer, flexipay,
easy money, online
shopping
 DEBIT CARD COMPARISON OF HDFC AND SBI BANK

FEATURES HDFC BANK DEBIT SBI BANK DEBIT

CARD CARD
Varies based on the card Varies based on the card
Annual Fee
type and account type and account
Available at HDFC Bank
Available at SBI Bank and
Cash Withdrawal and non-HDFC Bank
non-SBI Bank ATMs
ATMs

Insurance Coverage Available on select cards Available on select cards

Free transactions for select Free transactions for select

Online Transactions
accounts accounts
Photo debit card, rewards,
Contactless payment, free
Additional Features easy bill payment, free
accidental death insurance
insurance

Rewards Available on select cards Available on select cards

 MINOR ACCOUNT COMPARISON OF HDFC AND SBI BANK

FEATURES HDFC BANK MINOR SBI BANK MINOR

ACCOUNT ACCOUNT
Minimum Age 10 years and above 10 years and above
Depends on the account
Minimum Balance Not required
type and location
Varies based on the
Interest Rate Same as saving account
account type
Free NEFT/RTGS Only provided with limit
Online Transactions
transactions of 2000
Personalized cheque book, Nomination facility, free
Additional Features dedicated relationship monthly e-statement,
manager, rewards birthday gifts
Available on select Parental control on
Parental Control
accounts complete account
Mobile App for Parents Available Available
Interest rate of FD of some
banks recently updated in Mint
newspaper on 12.3.2023

If we compare here the interest

rate of HDFC bank and SBI than
we can easily understand that
HDFC is paying little higher
interest rate than SBI.
 Revenue INR 157,263 Crores (2022) INR 316,021 Crores (2022)

Net Profit INR 36,961 Crores (2022) INR 31,675 Crores (2022)

If we compare earning of Both banks :

HDFC earn a profit of 23.5% on its revenue and SBI earn a profit of 10% on
its sales.
Profit of any bank simply calculated by Interest earn on lending – Interest paid
to accounts.
Currently SBI has more than 45cr Customers and HDFC has more than 7
crore customers. But both banks have somehow same profit the only reason is
HDFC charge higher interest rate on lending's.
Thank You