RESEARCH REPORT

ON
COMPARATIVE ANALYSIS OF
SBI & ICICI

Submitted in partial fulfillment for the award of degree of

MASTER OF BUSINESS ADMINISTRATION
(Finance)

Under the guidance of

Dr. ANU
(Asst. Professor)

Submitted By:
TARANNUM PARWEEN
MBA (4th Sem.)
Roll No: 172110056

Dr. Shakuntala Misra National Rehabilitation

University, Lucknow
2017-2019

1
 DECLARATION

This is to declare that I TARANNUM PARWEEN student of MBA, have

personally worked on the project entitled COMPARATIVE ANALYSIS OF

SBI & ICICI The data mentioned in this report were obtained during genuine

work done and collected by me. The data obtained from other sources have been

duly acknowledged. The result embodied in this project has not been submitted

to any other University or Institute for the award of any degree.

Date: `

Place: Lucknow

2
 ACKNOWLEDGEMENT

Any fruitful work is incomplete without a word of thanks to those involved

directly or indirectly in its completion. With my sincere gratitude I would like to
thanks everyone who has supported me in my project.

I would like to thanks my college guide for their support and encouragement
during this research report. The opportunity provided by his was an immense
learning experience.
The help received from something without which the project would not have
been complete. Their insight as well as guidance helped me to understand the
essentials of the Project. I would like to thank them for their support.
I would also like to place on record my sense of gratitude to my parents and
friends for their support and encouragement, which has always guided me my
entire endeavourer.

TARANNUM PARWEEN
MBA (4th Sem.)
Roll No: 172110056

3
 TABLE OF CONTENTS

1. Objective Of Study
2. Significance Of Study
3. Introduction of the Topic
4. SBI Bank (Introduction)
5. ICICI Bank (Introduction)
6. SBI vsICICI(Home Loan)
7. Research Methodology
8. Data Analysis & Interpretation
9. Findings & Recommendation
10.Conclusion
11.Bibliography
12.Annexure

4
 OBJECTIVE OF STUDY

What is difference between SBIAND ICICI?

 How to invest money in share and other (MF, ULIP, INSURENCE etc.)
 First and foremost objective is to find out the reasons for using of
Advance Product from SBI or ICICI BANK.
 To find out the services that other bank given to their customer.
 To build the relationship with the customers and to follow up them, make
sure that they are satisfied with the products.
 To maintain good relationship with the corporate employees.
 To get more references from the customers and generate new leads by
following a Chain process.
 To place SBIAdvance Product ahead of the competitors also ICICI.
 To know where should invest money.

5
SIGNIFICANCE & SCOPE OF THE STUDY
 The geographical scope of the study is restricted to LUCKNOW only
with sample size of 50 people.

 All the analysis and suggestions are based on the analysis of the both
primary and secondary data.

 Therefore the scope of the study revolves around the following aspects:-
· Consumer perception towards Advance Product & Investment
· Consumer awareness about Advance Product scheme & Share and
its benefit.

· Aware the Bank about the customer problems, especially in case of

Share Marker.

6
 INTRODUCTION
Bank

A Bank is license by agovernment. Its primary activity is to lend money. Many

other financial activities were allowed over time. For example banks are
important players in financial markets and offer financial services such as
investment funds In some countries such as Germany, banks
havehistorically owned major stakes in industrial corporations while in other co
untries such as the United banks are prohibited from owning non-financial
companies. In Japan, banks are usually the nexus of a cross-
shareholding entity known as thezaibatsu. InFrance,banc assuranceisprevalent,
as most banks offer insurance services (and now real estate services) to their
clients. The level of government regulationof the banking industry varies
widely, with counties such as Iceland, the United and the United having
relatively light regulation of the banking sector, and countries such as
Chinahaving relatively heavier regulation (including stricter regulations
regarding the level of reserves).

History

Banks have influenced economies and politics for centuries. Historically, the
primary purpose of a bank was to provide loans to trading
companies.Banks provided funds to allow businesses to purchase inventory, and
collected those funds back with interest when the goods were sold.
For centuries, the banking industry only dealt with businesses, not consumers.
Banking services have expanded to include services directed at individuals, and
risk in these much smaller transactions are pooled..

Origin of the word Silver drachma coin from Trapezes, 4th century BC  

7
The name Bank derives from the Italianwordbanco"desk/bench", used
duringtheRenaissancebyFlorentinebankers, who used to make their transactions
above a desk covered by a green tablecloth. However, there are traces of
banking activity even in ancient times.

ABOUT BANKING:-

Section 5(b) of the Banking Regulation Act,

1949defines banking as ‘the accepting, for the purpose of lending or investment, 
of deposits of money from the public, repayable on demand or otherwise, and w
ithdrawal by cheque, draft, order or otherwise.”Section 5(c) of the Banking
Regulation Act, 1949 defines a banking company’ as “any company which
transacts the business of banking in India”.

Silver drachma coin from Trapezes, 4th century BC

 Definition of Banking:-

The definition of a bank varies from country to country. Under 

English common law

, a banker is defined as a person who carries on the business of banking,

which is specified as:

*Conducting current accounts for his customers.

*Paying cherubs drawn on him, and

8
*Collecting cherubs for his customers.

The borrowing, raising or taking up of money, the lending

or advancing of money either with or without security; Acting as agents for any
government or local authority or any other person or persons. Contracting for
public and private loans and negotiating and issuing the same. The effecting,
insuring, guaranteeing, underwriting, participating in managing and carrying out
of any issue, public or private, of state, municipal or other loans or of shares,
stock, debentures or debenture stock of any company, corporation or association
and the lending of money for the purpose of any such issue.

Examples of statutory definitions:

*"banking business" means the business of receiving money on current

or deposit account, paying and collecting cherubs drawn by or paid in by
customers, the making of advances to customers, and includes such
other business as the Authority may prescribe for the purposes of this Act;
(Banking Act (Singapore), Section 2, Interpretation).

*"banking business" means the business of either or both of the following:

1.Receiving from the general public money on current, deposit, savings or other
similar account repayable on demand or within less than [3 months] ...or with a
period of call or notice of less than that period;

2.Paying or collecting cherubs drawn by or paid in by customers

3.Since the advent of EFTPOS(Electronic Funds Transfer at Point Of Sale),

direct credit, direct debit and internet banking, the cherub has lost its primacy in
most banking systems as a payment instrument. This has
ledlegal theorists to suggest that the cheque based definition should bebroadene
d to include financial institutions that conduct current accounts for customers

9
and enable customers to pay and be paid by third parties, even if they do not pay
and collect cherubs

Commercial role

The commercial role of banks is not limited to banking, and includes:

*issue of banknotes(promissory notes issued by a banker and payable to bearer

on demand)

*processing of payments by way of telegraphic transfer,EFTPOS,internet
banking or other means.

*issuing bank drafts and bank cherubs.

*accepting money on term deposit.

*lending money by way of overdraft, installment loan or otherwise

*providing documentary and standbyletters of credit(trade finance),guarantees,
performance bonds, securities underwriting commitments and other forms of
off-balance sheet exposures

*safekeeping of documents and other items in safe deposit boxes

*currency exchange.

*acting as a 'financial supermarket' for the sale, distribution or brokerage, with

or without advice, of insurance, unit trusts and similar financial products.

10
Economic functions

The economic functions of banks include:

1.Issue of money, in the form of bank notesand current accounts subject to

cherubor payment at the customer's order. These claims on banks can act as
money because they are negotiable and/or repayable on demand, and hence
valued at par. They are effectively transferable by mere delivery, in the case
of banknotes, or by drawing a cherub that the payee may banker cash.

2.Netting and settlement of payments – banks act as both collection

andpaying agents for customers, participating in interbank clearing andsettleme
nt systems to collect, present, be presented with, and pay
paymentinstruments. This enables banks to economise on reserves held for settl
ement of payments, since inward and outward payments offset each other. It
also enables the offsetting of payment flows between geographical areas,
reducing the cost of settlement between them.

3.Credit intermediation – banks borrow and lend back-to-back on their own

account as middle men.

4.Credit quality improvement – banks lend money to ordinary

commercialand personal borrowers (ordinary credit quality), but are high qualit
yborrowers. The improvement comes from diversification of the bank's assets
and capital which provides a buffer to absorb losses without defaulting on its
obligations.

 5.Maturity transformation– banks borrow more on demand debt and short term
debt, but provide more long term loans. In other words, they borrow short and
lend long. With a stronger credit quality than most other borrowers, banks can
do this by aggregating issues (e.g. accepting deposits and issuing banknotes)
and redemptions (e.g. withdrawals).

11
Law of banking

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

bank (defined above) and the customer defined as any entity for which the bank
agrees to conduct an account.

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

: 1.The bank account balance is the financial position betweenthe bank and the

customer: when the account is in credit, the bank owes thebalance to the
customer; when the account is overdrawn, the customer owes the balance to the
bank.

2. The bank agrees to pay the customer's cherubs up to theamount standing to

the credit of the customer's account, plus any agreedoverdraft limit.

3. The bank may not pay from the customer's account without amandate from
the customer, e.g. a cherub drawn by the customer.

4.The bank agrees to promptly collect the cheques depositedto the customer's ac
count as the customer's agent, and to credit theproceeds to the customer's
account.

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

just an aspect of the same credit relationship.

6.The bank has alienon cherubs deposited to the customer'saccount, to the

extent that the customer is indebted to the bank.

7.The bank must not disclose details of transactions throughthe customer's

account—unless the customer consents, there is a publicduty to disclose, the
bank's interests require it, or the law demands it

Entry regulation

12
Currently in most jurisdictions commercial banks are regulated bygovernment
entities and require a special bank license to operate.

Usually the definition of the business of banking for the purposes of regulation
is extended to include acceptance of deposits, even if they are not repayable to
the customer's order—although money lending, by itself, is generally not
included in the definition.

Unlike most other regulated industries, the regulator is typically also aparticipan
t in the market, i.e. a government-owned (central) bank.

Centralbanks also typically have a monopoly on the business of issuing
banknotes. However, in some countries this is not the case. In the UK,
for example, the Financial Services Authority  licenses banks, and some
commercial banks (such as the Bank of Scotland ) issue their own banknotes in
addition to those issued by the Bank of England , the UKgovernment's central
bank. Some types of financial institution, such as building societies and
credit SBIs , may be partly or wholly exempt from bank licenserequirements,
and therefore regulated under separate rules.

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 STATE BANK OF INDIA
Sectors Banks

Central Bank:- RESERVE BANK OF INDIA

Nationalized Banks:- State Bank of India , Allahabad Bank , Andhra

Bank , Bank of Baroda, Bank of India Bank of Maharashtra, Canada
Bank ,Central Bank of India , Corporation Bank , Dena Bank , Indian Bank ,
Indian Overseas Bank , Oriental Bank of Commerce ,Punjab & Sind Bank ,
Punjab National Bank , Syndicate Bank ,IDBI Bank, SBI Bank of India , United
Bank of India , Cuban , Vijay Bank.

Private Banks:-
Axis Bank , Bank of Rajasthan · Bharat Overseas Bank ·Catholic Syrian Bank ·
Centurion Bank of Punjab ·City SBI Bank .Development Credit Bank ·
Dhanalakshmi Bank ·Federal Bank ·Ganesh Bank of Kurundwad · ICICI Bank
·ICICI Bank
·IndusInd Bank ·ING Vysya Bank·Jammu & Kashmir Bank ·Karnataka Bank Li
mited · Karur Vysya Bank ·KotakMahindra Bank ·Lakshmi Vilas Bank·Nainital
Bank ·Ratnakar  Bank·SBI Commercial and International Bank ·South Indian
Bank·Tamilnad Mercantile Bank Ltd..

ForeignBanks:- Citibank · HSBC ·Standard Chartered

Regional Rural Banks:- South Malabar Garmin Bank

Cooperative Banks:- The Andaman and Nicobar State Co-operative Bank

Ltd. TheArunachal Pradesh State co-operative Apex Bank Ltd. TheAssam Co-
operative Apex Bank Ltd The Bihar State Co-operative Bank Ltd. The
Chandigarh State Co-operative Rankled.

14
State Bank of India

(SBI) (LSE:SBID) is the largest bankin India. The bank traces its ancestry back
through the Imperial tothe founding in1806of the Bank, making it the oldest
commercial bank in the Indian Subcontinent. The Government nationalized the
Imperial Bank of India in1955, with the Reserve taking a 60% stake, and
renamed it the State Bank of India. In 2008, the Government took over the stake
held by the Reserve Bank of India.SBI provides a range of banking products
through its vast network in India and overseas, including products aimed antis.
With an asset base of $126 billion and its reach, it is a regional banking
behemoth.SBIhas laid emphasis on reducing the huge manpower through
Golden schemes, which led to a flight of its best and brightest managers which
took to retirement allowances and then wanton the become senior managers at
new private sector banks, and computerizing itsoperations. The roots of the
State Bank of India rest in the first decade of 19th century, when the Bank, later
renamed the Bank, was established on2 June 1806. The Bank of Bengal and two
other Presidency banks, namely, the Bank (incorporated on15 April 1840) and
the Bank (incorporated on1 July 1843)... These three banks received the
exclusive right tissue paper currency in 1861 with the Paper Currency Act, a
right they
retaineduntil the formation of theReserve Bank of India. The Presidency banksa
malgamated on27 January 1921, and the reorganized banking entity took as
itsname Imperial Bank of India. The Imperial Bank of India continued to remain
a joint stockcompany. Pursuant to the provisions of the State Bank of India Act
(1955), the Reserve of India, which is India’s, acquired a controlling interest in
the Imperial Bank of India. On30 April 1955the Imperial Bank of India became
the State
Bankof India.In 1959 the Government passed the State Bank of India (Subsidiar
yBanks) Act, enabling the State Bank of India to take over eight former State-
15
associated banks as its subsidiaries. Onset, 2008, State Bank of Saurashtra, one
of its Associate Banks, merged with State Bank of India.

Associate banks

There are six associate banks that fall under SBI, and together these six
banksconstitute the State Bank Group. All use the same logo of a blue keyhole
and banks
constitutes use the "State Bank of" name followed by the regionalheadquarters'
name. Originally, the then seven banks that became the associate banks
belonged to princely until the government nationalized them in 1959.In tune
with the first Five Year Plan, emphasizing the development of rural India, the
government integrated these banks into State Bank of India to expand its rural
outreach. There has been a proposal to merge all the associate banks intoSBIto
create a "mega bank" and streamline operations. The first step along these lines
occurred in September 2008 when State merged with State Bank of India,
which reduced the number of state banks from seven to six.

*State Bank of Indore

*State Bank of Bikaner &Raipur 

*State Bank of Hyderabad

*State Bank of Mysore

*State Bank of Patiala

*State Bank of Travancore

Growth:- 

State Bank of India has often acted as guarantor to the Indian, most
notablyduring Chandra's tenure as Prime. With more than 11,111 branches and

16
a further 6500+ associate bank branches, theSBIhas extensive coverage. State
Bank of India has electronically networked all of its branches under Core
Banking System(CBS). The bank has one of the largest TM networks in the
region. More than 8500 ATMs across India. The State Bank of India has had
steady growth over its history, though it was marred by the Harsh ad Mehta
scam in 1992. In recent years, the bank has sought to expand its overseas
operations by buying foreign banks. It is the only Indian bank to feature in the
top 

India. The rest were government nominees, invariably civil servants, one of
whom was elected as the president of the board.

Business

EVOLUTION OF SBI

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 modernize India's economy. Their evolution was,
however, shaped by ideas culled from similar developments in Europe and

17
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 Europe and the global economic framework.

Bank of Bengal H.O.

Madras. It meant an accretion to the capital of the banks, a capital on which

the proprietors did not have to pay any interest. The concept of deposit
banking was also an innovation because the practice of accepting money for
safekeeping (and in some cases, even investment on behalf of the clients) by
the indigenous bankers had not spread as a general habit in most parts of India.
But, for a long time, and especially up to the time that the three presidency
banks had a right of note issue, bank notes and government balances made up
the bulk of the investible resources of the banks.

The three banks were governed by royal charters, which were revised from
time to time. Each charter provided for a share capital, four-fifth of which
were privately subscribed and the rest owned by the provincial government.
The members of the board of directors, which managed the affairs of each
bank, were mostly proprietary directors representing the large European
managing agency houses in India. The rest were government nominees,
invariably civil servants, one of whom was elected as the president of the
board. 

18
Group Photograph of Central Board (1921)

Business

The business of the banks was initially confined to discounting of bills of

exchange or other negotiable private securities, keeping cash accounts and
receiving deposits and issuing and circulating cash notes. Loans were
restricted to Sconelaky and the period of accommodation confined to three
months only. The security for such loans was public securities, commonly
called Company's Paper, bullion, treasure, plate, jewels, or goods 'not of a
perishable nature' and no interest could be charged beyond a rate of twelve per
cent. Loans against goods like opium, indigo, salt woolens, cotton, cotton
piece goods, mule twist and silk goods were also granted but such finance by
way of cash credits gained momentum only from the third decade of the
nineteenth century. All commodities, including tea, sugar and jute, which
began to be financed later, were either pledged or hypothecated to the bank.
Demand promissory notes were signed by the borrower in favor of the
guarantor, which was in turn endorsed to the bank. Lending against shares of
the banks or on the mortgage of houses, land or other real property was,
however, forbidden.

19
Indians were the principal borrowers against deposit of Company's paper,
while the business of discounts on private as well as salary bills was almost
the exclusive monopoly of individuals Europeans and their partnership firms.
But the main function of the three banks, as far as the government was
concerned, was to help the latter raise loans from time to time and also provide
a degree of stability to the prices of government securities.

Old Bank of Bengal

Major change in the conditions

A major change in the conditions of operation of the Banks of Bengal,

Bombay and Madras occurred after 1860. With the passing of the Paper
Currency Act of 1861, the right of note issue of the presidency banks was
abolished and the Government of India assumed from 1 March 1862 the sole
power of issuing paper currency within British India. The task of management
and circulation of the new currency notes was conferred on the presidency
banks and the Government undertook to transfer the Treasury balances to the
banks at places where the banks would open branches. None of the three
banks had till then any branches (except the sole attempt and that too a short-

20
lived one by the Bank of Bengal at Mirzapore in 1839) although the charters
had given them such authority. But as soon as the three presidency bands were
assured of the free use of government Treasury balances at places where they
would open branches, they embarked on branch expansion at a rapid pace. By
1876, the branches, agencies and sub agencies of the three presidency banks
covered most of the major parts and many of the inland trade centers in India.
While the Bank of Bengal had eighteen branches including its head office,
seasonal branches and sub agencies, the Banks of Bombay and Madras had
fifteen each.

Bank of Madras Note Dated 1861 for Rs.10

Presidency Banks Act

The presidency Banks Act, which came into operation on 1 May 1876,
brought the three presidency banks under a common statute with similar
restrictions on business. The proprietary connection of the Government was,
however, terminated, though the banks continued to hold charge of the public
debt offices in the three presidency towns, and the custody of a part of the
government balances. The Act also stipulated the creation of Reserve
Treasuries at Calcutta, Bombay and Madras into which sums above the
specified minimum balances promised to the presidency banks at only their
head offices were to be lodged. The Government could lend to the presidency

21
banks from such Reserve Treasuries but the latter could look upon them more
as a favor than as a right.

Bank of Madras

The decision of the Government to keep the surplus balances in Reserve

Treasuries outside the normal control of the presidency banks and the
connected decision not to guarantee minimum government balances at new
places where branches were to be opened effectively checked the growth of
new branches after 1876. The pace of expansion witnessed in the previous
decade fell sharply although, in the case of the Bank of Madras, it continued
on a modest scale as the profits of that bank were mainly derived from trade
dispersed among a number of port towns and inland centers of the presidency.

22
Bank of Bombay

Stamp of Imperial Bank of India Subsidiaries

 -The State Bank Group includes a network of eight banking subsidiaries and
several non-banking subsidiaries. Through the establishments, it offers
variousservices including merchant banking services, fund management, facto
ringservices, primary dealership in government securities, credit cards.
The eight banking subsidiaries are:

23
16.State Bank of Patiala (SBP)
17.State Bank of Saurashtra (SBS)
18.State Bank of Travancore (SBT)
Products Personal Banking:-

*SBI Term DepositsSBILoan For Pensioners

*SBI Recurring Deposits Loan Against Mortgage Of Property
*SBI Housing Loan Loan Against Shares & Debentures
*SBI Car Loan Rent Plus Scheme
*SBI Educational Loan Midi-Plus Scheme
Other Services:-

*Agriculture/Rural Banking

*NRI Services
*ATM Services
*Demit Services
*Corporate Banking
*Internet Banking
*Mobile Banking
*International Banking
*Safe Deposit Locker 

RBIEFT
*E-Pay
*E-Rail
*SBI VishayYare Foreign Travel Card

24
*Broking Services
*Gift Cherubs

NETWORK OFSBIBANK:-
SBI Bank India has 52 Foreign Offices in 34 countries.SBIIndia serves
theinternational needs of its foreign customers, in addition to conducting retail
operations. The focus of the offices ofSBIis India-related business. Few of the
countries whereSBIBank has branches are as under:
*Australia
*Bahamas
*Bahrain
*Bangladesh
*Belgium
*Bhutan
*Canada
*France
*Germany
*Hong Kong
*Japan
*Maldives
*Mauritius
*Muscat
*Nepal
*Nigeria
*Oman
*Russia
*Singapore
*Sri Lanka

25
*South Africa
*UK
*USA

Balance Sheet of State Bank of India ------------------- in Rs. Cr. -------------------

Mar '12 Mar '11 Mar '10 Mar '09 Mar '08

12 moths 12 moths 12 moths 12 moths 12 moths

Capital and Liabilities:

Total Share Capital 671.04 635.00 634.88 634.88 631.47
Equity Share Capital 671.04 635.00 634.88 634.88 631.47
Share Application
0.00 0.00 0.00 0.00 0.00
Money
Preference Share Capital 0.00 0.00 0.00 0.00 0.00
Reserves 83,280.16 64,351.04 65,314.32 57,312.82 48,401.19
Revaluation Reserves 0.00 0.00 0.00 0.00 0.00
Net Worth 83,951.20 64,986.04 65,949.20 57,947.70 49,032.66
1,043,647.3 742,073.1 537,403.9
Deposits 933,932.81 804,116.23
6 3 4
Borrowings 127,005.57 119,568.96 103,011.60 53,713.68 51,727.41
1,170,652.9 1,053,501.7 795,786.8 589,131.3
Total Debt 907,127.83
3 7 1 5

26
Other Liabilities & 110,697.5
80,915.09 105,248.39 80,336.70 83,362.30
Provisions 7
1,335,519.2 1,223,736.2 1,053,413.7 964,432.0 721,526.3
Total Liabilities
2 0 3 8 1
Mar '12 Mar '11 Mar '10 Mar '09 Mar '08

12 moths 12 moths 12 moths 12 moths 12 moths

Assets
Cash & Balances with
54,075.94 94,395.50 61,290.87 55,546.17 51,534.62
RBI
Balance with Banks,
43,087.23 28,478.65 34,892.98 48,857.63 15,931.72
Money at Call
542,503.2 416,768.2
Advances 867,578.89 756,719.45 631,914.15
0 0
275,953.9 189,501.2
Investments 312,197.61 295,600.57 285,790.07
6 7
Gross Block 14,792.33 13,189.28 11,831.63 10,403.06 8,988.35
Accumulated
9,658.46 8,757.33 7,713.90 6,828.65 5,849.13
Depreciation
Net Block 5,133.87 4,431.95 4,117.73 3,574.41 3,139.22
Capital Work In
332.68 332.23 295.18 263.44 234.26
Progress
Other Assets 53,113.02 43,777.85 35,112.76 37,733.27 44,417.03
1,335,519.2 1,223,736.2 1,053,413.7 964,432.0 721,526.3
Total Assets
4 0 4 8 2

614,603.4 736,087.5
Contingent Liabilities 698,064.74 585,294.50 429,917.37
7 9
Bills for collection 201,500.44 205,092.29 166,449.04 152,964.0 93,652.89

27
 6
Book Value (Rs) 1,251.05 1,023.40 1,038.76 912.73 776.48

28
 List of Directors on the Central Board ofState Bank of India (As
on 06th February, 2013)

 Sr. Under Section of

Name Designation
No. SBI Act 1955

1 SheriPrateChaudhuri Chairman 19 (a)

Managing Director
2 SheriHemans G. Contractor 19 (b)
 

3 SheriDiwakar Gupta Managing Director 19 (b)

4 Sheri A. Krishna Kumar Managing Director 19 (b)

5 SheriS.Vishvanathan Managing Director 19 (b)

6 Sheri S. Venkatachalam Director 19 (c)

7 Sheri D. Sandarac Director 19 (c)

8 SheriParthasarathyIyengar Director 19 (c)

9 Sheri Thomas Mathew Director 19 (c)

SheriJotaBhushanMohapatr Workmen
10 19 (ca)
a Employee Director

Officer Employee
11 Sheri S.K. Mukherjee 19 (cb)
Director

12 Dr. Rajiv Kumar Director 19 (d)

13 Sheri Deepak Amin Director 19 (d)

SheriHarichandraBahadur
14 Director 19 (d)
Singh

15 Sheri Rajiv Takru Director 19 (e)

29
Capital Structure (State Bank of India)
Period Instrument Authorized Issued -PAIDUP-
Capital Capital
Fro To (Rs. cr) (Rs. cr) Shares (nos) Face Value Capital
m
2011 2012 Equity Share 5000 671.13 671044838 10 671.04

2010 2011 Equity Share 5000 635.08 634998991 10 635

2009 2010 Equity Share 1000 634.97 634882644 10 634.88

2008 2009 Equity Share 1000 634.97 634880222 10 634.88

2007 2008 Equity Share 1000 631.56 631470376 10 631.47

2006 2007 Equity Share 1000 526.3 526298878 10 526.3

2005 2006 Equity Share 1000 526.3 526298878 10 526.3

2004 2005 Equity Share 1000 526.3 526298878 10 526.3

2003 2004 Equity Share 1000 526.3 526298878 10 526.3

2002 2003 Equity Share 1000 526.3 526298878 10 526.3

2001 2002 Equity Share 1000 526.3 526298878 10 526.3

2000 2001 Equity Share 1000 526.3 526298878 10 526.3

1999 2000 Equity Share 1000 526.3 526298878 10 526.3

1996 2000 Equity Share 1000 526.3 526298878 10 526.3

1995 1996 Equity Share 1000 474.01 474009872 10 474.01

1994 1995 Equity Share 1000 474.01 474009189 10 474.01

1993 1994 Equity Share 1000 473.83 473828726 10 473.83

1991 1993 Equity Share 1000 200 20000000 100 200

30
31
 ICICI BANK

Housing Development Finance Corporation Limited (ICICI) was amongst the

first to receive an 'in principle' approval from the Reserve Bank of India (RBI)
to set up a bank in the private sector, as part of the RBI's liberalisation of the
Indian Banking Industry in 1994. The bank was incorporated in August 1994 in
the name of 'ICICI Bank Limited', with its registered office in Mumbai, India.
ICICI Bank commenced operations as a Scheduled Commercial Bank in
January 1995. 
 
ICICI Bank began operations in 1995 with a simple mission: to be a"World-
class Indian Bank". We realised that only a single-minded focus on product
quality and service excellence would help us get there. Today, we are proud to
say that we are well on our way towards that goal.
It is extremely gratifying that our efforts towards providing customer
convenience have been appreciated both nationally and internationally.

32
2013

FE Best Bank ICICI Bank wins in 3 categories at FE Best Bank

Awards Awards

Skoch Financial Organisation of the Year

Inclusion
Awards 2013

2012

DSCI - Security in Bank (2nd time in a row)

Information - Security Leader of the Year (Banking)
Technology
Award 2012

Business world - Most tech-friendly Bank 

Awards for - Deal of the year (Rupee Bonds)
Banking
Excellence 2012

HT-Mars - Winner: Bank and Credit Card customer

Customer satisfaction Survey
satisfaction
survey

CSO Forum - Best Organization for Information Security

33
Information Practice (2nd time in a row)
Technology
Award 2012

Economic Times ET Awards for Corporate Excellence - Company of

the Year 2012

CNBC TV18's Best Private sector Bank

India Best Banks
and Financial
Institutions
Awards 2012

Mint-Aon Hewitt Our Bank among India's six best managed Boards
study on India's 2012
Best Managed
Boards 2012

Forbes Asia Fib 50 Companies - Winning for the 6th year

IBA Banking - Best Online Bank

Technology - Best use of Business Intelligence
Awards 2011 - Best Customer Relationship Initiative
- Best Risk Management & Security Initiative
- Best use of Mobility Technology in Banking

34
Dun & - Overall Best Bank
Bradstreet - Best Private Sector Bank
Banking Awards - Asset Quality - Private Sector
2012 - Retail Banking -Private Sector

IDRBT Banking Best Bank in 'IT for Operational Effectiveness'

Technology category
Excellence
Awards 2011-12

Asia Money Best Domestic Bank in India

2012

India's Top 500 Best Bank in India

Companies -Dun
& Bradstreet
Corporate
Awards

Finance Asia - Best Managed Company

- Best CEO - Mr. AdytaPure

UTI Mutual - Best Performing Bank - Private

Fund CNBC TV
18 Financial
Advisor Awards
2011

Asian Banker - Best Retail Bank in India

International - Best Banc assurance

35
Excellence in - Best Risk Management
Retail Financial
Services Awards
2012

5th Loyalty Customer and Brand Loyalty

Summit award

Koch foundation SHG/JLG linkage programmed

2012

ICAI Awards Excellence in Financial Reporting

2011

2011

Outlook Money - Best Bank - Runner Up

Best Bank
Award 2011

Best Commercial - Driving Positive Change

Vehicle
Financier

Business world - Best Bank

Best Bank award

BCI Continuity - Most Effective Recovery of the Year

36
& Resilience
Award

Financial - Best in Strength and Soundness 

Express Best - 2nd Best in the Private Sector
Bank Survey
2010-11

CNBC TV18's - Best Bank

Best Bank & - Mr. AdytaPure, Outstanding Finance Professional
Financial
Institution
Awards

Dun & Best Private Sector Bank - SME Financing

Bradstreet
Banking Awards
2011

ISACA 2011 Best practices in IT Governance and IT Security

award for IT
Governance

IBA Productivity New Channel Adopter (Private Sector)

Excellence
Awards 2011

DSCI (Data Security in Bank

Security Council
of India)

37
Excellence
Awards 2011

Euro money Best Bank in India

Awards for
Excellence 2011

FINANCE ASIA - BEST BANK

Country Awards - BEST CASH MANAGEMENT BANK
2011: India - BEST TRADE FINANCE BANK

Asian Banker Strongest Bank in Asia Pacific

Bloomberg TV’s Best Bank

Financial
Leadership
Awards 2011

IBA Banking Winner -

Technology 1) Technology Bank of the Year
Awards 2010 2) Best Online Bank
3) Best Customer Initiative
4) Best Use of Business Intelligence
5) Best Risk Management System
Runners Up - 
Best Financial Inclusion

IDC FIIA Excellence in Customer Experience

Awards 2011

38
We are aware that all these awards are mere milestones in the continuing, never-
ending journey of providing excellent service to our customers. We are
confident, however, that with your feedback and support, we will be able to
maintain and improve our services. 

Subsidiary and Associate Companies The subsidiaries of ICICI consists of 

1. ICICI Bank
2. ICICI Mutual Fund
3. ICICI Standard Life Insurance Company
4. ICICI Realty
5. ICICI Chubb General Insurance Company Limited.
6. Intel net Global Services Limited
7. Credit Information Bureau (India) Limited
8. Other Companies Co – Promoted by ICICI
*ICICI Trustee Company Ltd.
*GRUH Finance Ltd.
*ICICI Developers Ltd.
*ICICI Venture Capital Ltd.
*ICICI Venture Trustee Company Ltd
*ICICI Securities Ltd.
*ICICI Holding Ltd.
*Home Loan Services India Pvt. Ltd.
ICICIBANK The Organization:

The Housing Development Finance Corporation Limited (ICICI) was amongst

the first to receive an 'in principle' approval from the Reserve Bank of India
(RBI) to setup a bank in the private sector, as part of the RBI's liberalization of
the Indian Banking Industry in 1994. The bank was incorporated in August
1994 in the name of 'ICICI Bank Limited', with its registered office in Mumbai,
India. ICICIBank commenced operations As a Scheduled Commercial Bank on

39
16th January 1995.In the year 1998 ICICI Bank had tied up with the
Ahmadabad Stock Exchange (ASE) to act as its clearing bank.

Capital Structure

The authorized capital of ICICI Bank is Rs.450 crore (Rs.4.5 billion). The paid-
up capital is Rs.311.9 core (Rs.3.1 billion). The ICICI Group holds 22.1% of the
bank’s equity and about 19.4% of the equity is held by the ADS Depository (in
respect of the bank's American Depository Shares (ADS) Issue). Roughly
31.3% of the equity is held by Foreign Institutional Investors (FIIs) and the
bank has about190,000 shareholders. The shares are listed on the The Stock
Exchange, Mumbai and the National Stock Exchange.

Times Bank Amalgamation:-

In a milestone transaction in the Indian banking industry, Times Bank

Limited(another new private sector bank promoted by Bennett, Coleman &
Co./Times Group) was merged with ICICI Bank Ltd., effective February 26,
2000. As per the scheme of amalgamation approved by the shareholders of both
banks and the Reserve Bank of India, shareholders of Times Bank received 1
share of ICICIBank for every 5.75 shares of Times Bank. The acquisition added
significant value toICICI Bank in terms of increased branch network, expanded
geographic reach, enhanced customer base, skilled manpower and the
opportunity to cross-sell and leverage alternative delivery channels.

40
Management - ICICI Bank
Name Designation

C M Valued Chairman
Harish Engineer Executive Director
RenoKerned Director
PerthData Director
Anemia N Roy Director
Name Designation

AdytaPure Managing Director

ParishSukthankar Executive Director
PunditPalade Director
Bobby Parikh Director
KakiMisty Director
"Savings Deposits" means a form of Demand Deposit which is subject torestrict
ions as to the number of withdrawals as also the amounts of withdrawals
permitted by the bank during any specified period; ICICI provides with
savingbank account with the usual facilities, and one also gets a free ATM card,
intrbranch banking, bill payment facilities, phone banking and mobile banking.

2. Term Deposits:

"Term Deposit" means a deposit received by the bank for a fixed period
withdrawable only after the expiry of the fixed period and includes deposits suc
h asRecurring / Double Benefit Deposits .

3. Notice Deposit:

''Notice Deposit'' means Term Deposit for a specific period but which can be
withdrawn on giving at least one complete banking day's notice.

41
4. Current Account:

"Current Account" means a form of Demand Deposit wherefrom withdrawals

are allowed any number of times depending upon the balance in the account or
up to particular agreed amount and will also include other deposit accounts
which are neither Savings Deposit nor Term Deposit; The account holder gets a
personalizedcheque book, monthly account statements, and Inter-branch
banking.

5. Corporate Account:-

These are more commonly known as Salary Accounts. These are account
inICICI bank with zero balance. These are given to salaried people. Theseaccou
nts are opened by the employer for the employees to deposit the salary of the
employee directly to the account.

6. ICICI Bank Preferred:-

 A preferential Savings Account where in, one is assigned with a dedicatedRelat
ionship Manager, who’s you’re the one point contact. One also get
privilegeslike fee waivers, enhanced ATM withdrawal limit, priority locker
allotment, freeDemat Account and lower interest rates on loans.

7. Sweep-In Account:-

A Fixed Deposit linked to one’s Savings Account. So,
even if one’s SavingsAccount runs a bit short, one can issue a cherub (or use
ATM Card).

8. Super Saver Account:-

42
It gives one an overdraft facility up to 75% of one’s fixed deposit. In anemergen
cy, you can access your funds while your fixed deposit continues to earnhigh
interest.

9. ICICI Bank Plus:-

Apart from Regular and Premium Current Accounts ICICI also has
ICICIBankPlus, a Current Account and then something extra for the ICICI bank
customers.One can transfer up to Rs. 50 lakh every month at no extra charges,
between thefour metros.

11.Demat Account:

One can conduct hassle-free transactions on the stock market for one’s
shares.The shares held by the customer are protected from damage, loss and
theft, bymaintaining these shares in electronic form. This account can be
accessed throughInternet too.

12.Loans:

There are a variety of loan schemes offered like personal loans, new car
loans,used car loans, loan against shares, consumer loans, two wheeler loans,
and home loans.

43
Balance Sheet of ICICI Bank ------------------- in Rs. Cr. -------------------

Mar '12 Mar '11 Mar '10 Mar '09 Mar '08

12 mths 12 mths 12 mths 12 mths 12 mths

Capital and Liabilities:

Total Share Capital 469.34 465.23 457.74 425.38 354.43

Equity Share Capital 469.34 465.23 457.74 425.38 354.43

Share Application Money 0.30 0.00 0.00 400.92 0.00

Preference Share Capital 0.00 0.00 0.00 0.00 0.00

Reserves 29,455.04 24,914.04 21,064.75 14,226.43 11,142.80

Revaluation Reserves 0.00 0.00 0.00 0.00 0.00

Net Worth 29,924.68 25,379.27 21,522.49 15,052.73 11,497.23

100,768.6
Deposits 246,706.45 208,586.41 167,404.44 142,811.58
0

Borrowings 23,846.51 14,394.06 12,915.69 2,685.84 4,478.86

105,247.4
Total Debt 270,552.96 222,980.47 180,320.13 145,497.42
6

Other Liabilities & Provisions 37,431.87 28,992.86 20,615.94 22,720.62 16,431.91

133,176.6
Total Liabilities 337,909.51 277,352.60 222,458.56 183,270.77
0

Mar '12 Mar '11 Mar '10 Mar '09 Mar '08

12 mths 12 mths 12 mths 12 mths 12 mths

Assets

Cash & Balances with RBI 14,991.09 25,100.82 15,483.28 13,527.21 12,553.18

Balance with Banks, Money at Call 5,946.63 4,568.02 14,459.11 3,979.41 2,225.16

Advances 195,420.03 159,982.67 125,830.59 98,883.05 63,426.90

Investments 97,482.91 70,929.37 58,607.62 58,817.55 49,393.54

44
Gross Block 5,930.24 5,244.21 4,707.97 3,956.63 2,386.99

Accumulated Depreciation 3,583.05 3,073.56 2,585.16 2,249.90 1,211.86

Net Block 2,347.19 2,170.65 2,122.81 1,706.73 1,175.13

Capital Work In Progress 0.00 0.00 0.00 0.00 0.00

Other Assets 21,721.64 14,601.08 5,955.15 6,356.83 4,402.69

Total Assets 337,909.49 277,352.61 222,458.56 183,270.78 133,176.60

Contingent Liabilities 844,374.61 559,681.87 466,236.24 396,594.31 582,835.94

Bills for collection 39,610.71 28,869.10 20,940.13 17,939.62 17,092.85

Book Value (Rs) 127.52 545.53 470.19 344.44 324.38

45
Capital Structure (ICICI Bank)
Period Instrument Authorized Issued -PAIDUP-
Capital Capital
Fro To (Rs. cr) (Rs. cr) Shares (nos) Face Value Capital
m
2011 2012 Equity Share 550 469.34 2346688270 2 469.34

2010 2011 Equity Share 550 465.23 465225684 10 465.23

2009 2010 Equity Share 550 457.74 457743272 10 457.74

2008 2009 Equity Share 550 425.38 425384109 10 425.38

2007 2008 Equity Share 550 354.43 354432920 10 354.43

2006 2007 Equity Share 450 319.39 319389608 10 319.39

2005 2006 Equity Share 450 313.14 313142408 10 313.14

2004 2005 Equity Share 450 309.88 309875308 10 309.88

2003 2004 Equity Share 450 284.79 284791713 10 284.79

2002 2003 Equity Share 450 282.05 282045713 10 282.05

2001 2002 Equity Share 450 281.37 281374613 10 281.37

2000 2001 Equity Share 300 243.6 243596261 10 243.6

1999 2000 Equity Share 300 243.28 243278261 10 243.28

1995 1999 Equity Share 300 200 200000000 10 200

1994 1995 Equity Share 300 110 110000000 10 110

46
ICICI Bank provide the following service

1.         Current A/C                                                 2.         Loan

3.         Corporate Salary A/C                              4.         Online A/C

5.         Debit Card                                             6.         Phone Banking

7.         Intercity/ Inter Branch Banking 8.         Net Banking

9.         Bill Pay

SBI & PNB Provides following services :-

Deposit

-Demand Deposit

v     Current Deposit

v     Saving Deposit

-Time Deposit

v     Fixed Deposit

v     Akshaya Deposit

v     Cumulative Deposit

v     Pragati Deposit

Loan :-

 v                 Housing finance for individuals

v                 Car finance

v                 Finance for consumer disables

47
v                 Finance for Scooter/Motorcycles

v                 Finance against future lease Rentols

v                 Personal loan to pensioness

v                 Personal loan to serving Army officers, Govt. & other Employees

v                 Education loan scheme

v                 Advance against life policy

v                 Advance against bank deposits

 - ATM’s

ICICI’S  RANGE OF PRODUCT

 Current A/C:- 

Under this account a person can deposit and with draw money as many
times in a day as he wants .The regulars an average quarterly balance of the Rs.
10000 only .Besides the free ATM card and easy accessibility. Your first 50
cherub leave are o

Offered free. This can be as:-   

v                 Premium current account – From any branch 

v                 ICICI  bank Trade - Small business 

v                 ICICI bank plus.  

48
Loans :- To Suits every need.

             A loan is a specified amount sanctioned for a period of times. Loans are
granted generally against the security of assets or on the personal security of the
borrower. The

borrowers may with draw the amount of the loan in lamp sum in installment.
Similarly it may be repayable in lump sum or in installment.

ICICI bank provides following loan under the retail banking segment :-

v                 Car Loan (For new and used cars).

v                 Personal loan.

v                 Loans against securities and two wheelers .

v                 Consumer loan. 

Car Loan :-   Varity of finance schemes 

New Car loan :

        Loan amount :upto 90% Of car value

Tenure : 12 to 48 month

Personal Loan :-  For anything you have in mind

v                 Holiday abroad 

v                 Wedding in the family

v                 Higher education

v                 No security or granter required

49
Loan amount:  Rs. 25000 to Rs 10 lack

Tenure  :12 to 48 months.

Eligibility : Salaried, individuals, self-employed doctors and CAS, CS,

Engineers M.B.A.S

Two wheelers and Consumer loan :-

Whatever your dream, ICICI have a scheme

v                 Two wheelers

v                 Personal computer and AC

v                 Durable like TV, Washing Machine, Refrigerator etc.

                                    For ICICI bank A/C holders only.

Loan amount :Rs. 7000 to 1 lakh (Max 85% of product value)

Tenure : 6 to 36 months

Eligibility : Salaried and self employed individuals

Loan against securities - An overdraft facility

Loan amount – Rs. 50000 to Rs. 20 lakh (upto 60%of market value of demand
share)

Mutual Fund – Rs. 50000 to Rs. 10 lakh

LIC policy – Rs.100000 onwards.

50
Corporate salary A/c:-

            With ICICI bank’s corporate salary A/C, employees receive an array of
rewards with then monthly pay cherub. All at no extra coast to organization. E-
age banking service from any where, at any time:-

v                 Phone banking

v                 Inter branch banking

v                 Net banking

v                 Bill payable

v                 Free phone banking

v                 Free mobile banking

v                 Free demand draft

v                 Free International debit card

v                 Direct salary credit

v                 Overdraft facility

v                 Demote A/C

v                 Joint A/C facility

v                 Free Demand Draft

PHONE BANKING:  ICICI bank provides phonebanking facility to its

customers. With the help of this service customers can get their account detail,
ask for a cherub book or a statement, open a fixed deposit, transfer money
within their own accounts, order a demand drafts, stop cherub payment etc. all
by phone

51
INTERCITY/ INTERBRANCH BANKING:   At ICICI you can access your
account from any of their 131 branches in 26 cities. So you can withdraw cash
form another branch, through a self-cherub. You can deposit a local cherub in
one branch and get it credited to your account in another city.

NETBANKING :   Internet banking is just like normal banking, with a one big
exception that you don’t have to go to the bank for transactions. Instead you can
access your account any time form any part of the world, and do so when you
have the time ,and not when the bank is open. Through the  net banking you can
transfer funds within the same bank, open a fixed deposit, get a demand draft,
make a TDS enquiry request a stop payment of on a cherub, request for a new
cherub book or even cherub your account balance.

BILLPAY :  ICICI bank provides its customers to pay their mobile  bills in
some selected cities over the phone as well as through their ATMs. In Mumbai
you can pay BPL Mobile bills, in Delhi you can pay Airtel bills and in Chennai
you can pay RPG and Sky cell  cellular bills through this facility. You can also
pay MTNL bills in Mumbai and Delhi and MSEB bills in Pune and Mumbai. It
saves a lot of time , which you spend in long queues or writing cherubs.

Debit Cards

ICICI Bank’s International debit card provide seamless freedom and fiscal

management to spending, both locally and globally.

The Debit and ATM Card, when issued as visa compliant cards, will give you
the freedom to access your savings or current at merchant location and ATM’s.

Whenever you make payments, the amount will be instantly debited from your
account. The present ATM cards allow you to access your account 24 hours a
day, all through the year.

52
SBI PRODUCT RANGE

 Deposit

            Deposits accepted by bank may be categorized as demand deposit and

time deposit.

Demand Deposit

Demand deposits are those deposits that can be withdrawn without notice. Bank
undertake to repay such deposits as demand. The following types of deposit
accounts are classified under Demand Deposits.

(a)               Current Account

(b)               Saving Account

 Current Account :

Under this accounts, a person can deposit and with draw money as many times
in a day as he wants. Money can be withdrawn by issuing cherubs. Current
account are remunerative type of deposit accounts as no interest its payable on
the credit balances outstanding in these accounts.

Saving Accounts :

            This account is opened for the purpose of savings. Any purpose of
savings. Any person including a minor can open this account by depositing a
small sum of money. Saving Bank Account is subject to the restriction as to the
number of withdrawal as also the amount of withdraw as also the amount of
withdrawal permitted by banks during any specified period. However there is no
restriction on the number and amount of deposits that can be made on any day.
Balances in the Saving Bank Account cans interest at rates as determined by
RBI from time to time.

53
Time Deposit

            Any deposit, which is repayable after a period of notice rather than
repayable after a fixed date or period, is a time deposit or popularly called as
term deposits. The following type of account in both banks are classified under
Retail Time Deposits.

Ø      Fixed Deposit

Ø      Apshaya Deposit

Ø      Cumulative Deposit

Ø      Pragati Deposit

Fixed Deposit :-

            Fixed Deposit where the depositor makes a lump sum deposit where the
depositors makes a lump sum deposit at one time for a fixed period and receive
payment there of on Maturity with interest.

ApshayaDeposit :-

            Apshaya Deposit is a reinvestment deposit Scheme where the depositors

makes a lump sum deposit at one time for a fixed period and receive payment
there of on Maturity with interest

State bank of India (SBI) home loan vs Housing development finance

corporation (ICICI) Home loan

It’s showdown time for the two biggies in the housing finance sector: SBIand
ICICI. After the economic meltdown, most banks switched their attention from
not-so-profitable commercial lending to retail lending, which have formed a
sizeable part of their credit portfolio in the recent past. State Bank of India
(SBI) was the frontrunner with its special 8 per cent home loan scheme till it

54
was challenged by Housing Development Finance Corporation Ltd (ICICI). So
what does ICICI offer to outdo SBI’s much-publicised scheme?
Highlights

ICICI offers new home loans at

a fixed 8.25 per cent rate for the
first three years
SBI loans are available at a
fixed 8 per cent rate for the first
year and 8.5 per cent for next
two years
There is a marginal difference in
the effective interest rates of
both the schemes
ICICI’s new home loan product comes at a fixed rate of 8.25 per cent per
annum for the first three years (up to March 2012). However, these rates are
applicable for loans up to Rs. 30 lakh and a maximum tenure of 20 years, and
not on the other two slabs, i.e., loans between Rs. 30 lakh and Rs. 50 lakh; and
Rs. 50 lakh and above. From fourth year onwards, ICICI will charge a floating
rate of 5 per cent below its retail prime lending rate (RPLR) – the institution’s
benchmark rate – on the loan. Currently, the RPLR is 13.75 per cent. This rate
is available under special festive offer to all new home loan customers who
apply before Jan. 31, 2010 and take at least part disbursement before March 31,
2010. NRIs and PIOs will also be benefitted from the festive offer rate.
SBI vsICICI
ICICI’s new loan offer is in direct competition with SBI’s Easy Loan scheme,
but it is difficult to guess the winner. Now let us have a rundown on SBI’s Easy
Loan scheme. Loans under this scheme are offered at a fixed rate of 8 per cent
for the first year, 8.5 per cent the next two years and thereafter at a floating rate

55
of 2.75 per cent below its benchmark rate (SBAR, State Bank Advance Rate) or
at a fixed rate of 1.25 per cent below SBAR. Currently, SBAR stands at 11.75
per cent. The comparative rates of both SBIand ICICI are given in Table 1.
Recently,SBIextended its special loan offer till March 31, 2009 to maintain its
credit growth target and build up retail portfolio in lieu of a slump in
commercial lending.

Earlier, ICICI was averse to the idea of discounted rate; it even criticized
SBIspecial home loan scheme. ICICI stressed the point that the teaser rates
offered in the initial years could cause widespread defaults when rates surged in
later years. So what made ICICI change its stance? It has reasoned that ample
liquidity, improved operational efficiency and good quality portfolio have made
the discounted rate possible for it. Whatever may be the reason, it is important
to see whether borrowers will benefit from these new rates.
Analysis
We, at Rupeetalk, always try to provide fair understanding and impact of the
special loan rates on customers (Read: SBI special home loan: A boon or
bane?), and what effect they will have on their cash flows.
Read Home loan tax implications
Here, we have analyzedICICI andSBIoffers in terms of interests paid in the first
three years, total interest paid and effective interest rate for the complete tenure
(refer Table 2 and 3).  In Table 2, we see that there is a marginal difference in
the first 3-year interest components of both the lenders. However, in terms of
total interest payments, ICICI scores over SBI; ICICI borrowers save Rs. 75,683

56
in interest compared toSBIborrowers. The effective interest rate in case of ICICI
comes to 8.69 per cent compared to SBI’s 8.85 per cent.

However, in case of a Rs. 60-lakh loan (refer Table 3), interest component in
the first 3 years varies considerably, i.e., 19.90 per cent and 22.34 per cent of
the total interest paid forSBIand ICICI, respectively. If the borrower is looking
to prepay his/her loan, SBI’s offer would be a good bet in this case.SBIalso
scores over ICICI in terms of total interest paid, and thus, the effective interest
rate comes to 9.69 per cent forSBIin comparison to 9.78 per cent for ICICI.
Here, ICICI borrowers end up paying Rs. 70,348 more thanSBIborrowers.

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No respite for existing customers
It is clear that these schemes are sales gimmick to lure new customers, for the
banks have completely ignored their existing customers. These reduced floating
rates are not applicable to the existing customers of both the schemes. In this
condition, the existing customers can either renegotiate rates with their banks
for a leveled interest rate or shift their loan to other lender for a better rate. Note
that refinancing a loan may require a customer to pay prepayment penalty as
high as 2 per cent.

Conclusion
The steady recovery of the Indian economy has spread cheer to almost every
sector, and the real estate market is no exception. After going through a rough
patch, it is regaining its composure. This is the time to buy a house for many,
with the property prices coming down by 20-30 per cent and banks offering

58
special rates to sell home loans and achieve their individual credit growth
targets. SBIand ICICI, which control a sizeable portion of retail lending in
India, are better placed to take advantage of these conditions with their special
loan schemes. Both the festive rates seem to have marginal difference in terms
of effective interest rates, however, borrowers are advised to read the fine print
before closing a deal so that there won’t be any regrets later.

59
 RESEARCH METHODOLOGY
Research Methodology

Research as a mean of getting knowledge can be carried out either arbitrarily or

in systematic fashion. It is a purposive investigation. Research may be a mean
to know the small change and time forced upon us as individual or as a society.
Research as process involves defining the problem, formulating the hypothesis,
organizing and evaluating the data, deriving inference and conclusion after
careful testing.

Type of Research:

The research was a Descriptive Research.

Descriptive Research:

Descriptive research is also called Statistical Research. The main goal of this
type of research is to describe the data and characteristics about the population
or phenomenon being studied. The idea behind this type of research is to study
frequencies, averages, and other statistical calculations. Descriptive research is
mainly done when a researcher wants to gain a better understanding of a topic.
It is quantitative and uses surveys and panels and also the use of probability
sampling. Descriptive research is the exploration of the existing certain
phenomena. Descriptive research generally precedes explanatory research.

SAMPLING DESIGN
Sampling may be defined as the selection of some part of an aggregate or
totality on the basis of which a judgment or inference about the aggregate or
totality is made. It is the process of obtaining information about an entire
population by examining only a part of it in which generalizations or influences

60
are drawn based on the samples about the parameters of population from which
the samples are taken.
Random Sampling:

Random sampling is the sampling technique I have used in my research.

SAMPLING AREA: Luck now

SAMPLE SIZE-50

DATA COLLECTION

Data collection means collections of information, facts or figures for the

problem.
SOURCES OF DATA
Primary Data:
Primary data is the first hand information obtained by investigating. Primary
source is one itself collects the data. Primary data can be collected by
observation, by interviews, by face to face questioning, by using questionnaire,
when the needed data do not exist or are dated, inaccurate, incomplete, or
unreliable.
Secondary Data:
Secondary data is collected by others already and the researcher is using that
information for his own research purpose. Secondary data can be collected from
published reports, newspaper, websites, journals, publications of national and
international organization.

61
CONTACT METHODS:

The respondents were contacted directly (Personal Interviewing). It is the most

versatile method. The interview was of intercept type in which respondents
were asked to answer the questions on the spot. The method is time consuming
but it provides better results as it involves face to face to interaction with the
respondent which is missing in case of telephonic, mail and other methods of
interviewing.

Secondary Data :
1. News papers& magazines
2. Research articles
3. Reference Books
4. Websites.

DATA ANALYSIS

Based on what the various respondents’ opinion, the data collected was
analyzed using figures. No rigorous mathematical analysis could be done. All
estimations are solely on judgment. For questions percentage was calculated
and represented in the form of charts.
After representing the data in the form of charts the same were interpreted to get
in-depth knowledge about the problem as well as general information, which
helped the researcher to come at appropriate conclusions about the study and to
give relevant recommendations.

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Data Representation:

To represent the data collected some graphical charts, tables and statistical
tools are used.

RESEARCH TOOLS

Software: Microsoft Excel

63
 DATA ANALYSIS & REPRESENTATION
Q1. On which bank you depend for your regular transaction?
( ) No. of People
SBI 60%
ICICI 23 %
HDFC 10%
OTHER 7%
TOTAL NO. OF PEOPLE 50

NO OF PEOPLE
SBI
HDFC
ICICI
OTHER

It has been observed that approximately 60% correspondents are using the
service ofSBIfor their daily transaction, around 23% of people are using ICICI
Bank for their transaction and only 10% & 7% of people are using ICICI &
other Bank service respectively LUCKNOW. It also shows thatSBIhave the
highest market position in LUCKNOW as per my sample.

64
Q2. Are you aware of products & services provided bySBI?

YES 85%
NO 15%
Total No. of People 50

SBI PRODUCT AWARENESS

YES
NO
TOTAL NO OF PEOPLE

From the above data it is clear that most of the customers (around 85%) of
LUCKNOW 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).

65
Q3. If yes are you aware of the advance products (Loan segments) of SBI?

SBI 76%
ICICI 20%
OTHERS 4%

LOAN PRODUCT AWARENESS OF HDFC

& SBI

SBI
HDFC
OTHERS

It is clear that most of the people have the idea about the advance product of
SBI. Almost all the 76% people who have the idea about the advance product
are the user Of SBIproduct & service.

66
Q4. Which bank you prefer for INVESTMENT?
SBI 60%

HDFC 37%

ICICI 2%

OTHER 1%

TOTAL NO. OF PEOPLE 50

PREFERNCE OF BANK FOR INVESTMENT

SBI
HDFC
ICICI
OTHER

According to my sample size 60% of people preferSBIfor investment, but some

people prefer ICICI, ICICI or OTHER Bank for investment.

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Q5. If you have two optionsICICI orSBI for INVESTMENT money in
equity which bank you will prefer SBIor ICICI?

Most of the people said that they preferSBI because of the transparency and
customer feel secured for any kind of investment product.SBI is a largest bank
in India.

68
Q.6 Which investment you have done eitherSBI orICICI?

ULIP 47%
LIFE INSURANCE 20%
MF 15%
EQUITY 10%
OTHER 8%
TOTAL NO. OF PEOPLE 50

INVESTMENT IN SBI & HDFC

ULIP
LIFE INSURANCE 20%
MF
EQUITY
OTHER

From the sample size 85% of people are using the SBIULIP 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
fromSBIlike both car & educational loan and home & car loan. 10% of people
took personal loan.

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Q7. What do you feel about the services providing bySBIand ICICI in
advance product?
SBI ICICI
SATISFACTORY 2% 1%
GOOD 55% 69%
EXCELLENT 43% 30%

0.8
0.6 HDFC
0.4 Series1
0.2 SBI SBI
0 Series1 HDFC
SATISFACTORY GOOD EXCELLENT

From this it is clear that the service provide bySBIin 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 service provide bySBIis 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.

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Q8. Which Bank you would like to choose for investment your money.
SBI 50%
ICICI 40%
OTHER 10%
TOTAL 50

INVESTMENT IN BANK

SBI
HDFC
OTHER
4th Qtr

According to my sample size 50%of people preferSBIfor INVESTMENT, but

some people prefer ICICI 40% and OTHER Bank 10% for invest money
because they thinkSBIis trustful bank.

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Q9.Where do you want to invest your money?

REAL STATE 15%

EQUITY 2%
MUTUAL FUND 3%
ULIPs 15%
SEVING 5%
FIXDEPOSIT 30%
INSURENCE 30%
OTHER 1%
TOTAL 50

INVESTMENT OF MONEY

REAL STATE
EQUITY
MF
ULIPS
SEVINGS
F.Ds

Most of People in LUCKNOW want to invest their money insurance, fix

deposit, ulips and real state. just 2% people want to invest in SHARE
Market .Because lack of Knowledge about Share Market.

72
 FINDINGS & RECOMMENDATIONS
 Customer awareness programmed is required so that more people should
attract towards advance product.
 Both should more concern about physical verification rather than phone
verification so it will avoid fraud or cheating.
 Advance product selling agents must not give any type of wrong
information regarding advance product.
 For the better service new offers would be require.
 SBIcustomer care should more concern about the fastest settlement of
customer
 problems. ICICI bank is already doing.
 Before deducting or charging any monetary chargeSBI&ICICI must
consult with customer.
 Agents should be trained, well educated & proper trained to convince the
people about different advance product.
 It is the duty of the bank to disclose all the material facts regarding
advance product, like ROI, repayment period and any types of charges,
etc.
 Special scheme should be implemented to encourage both customer and
agents.
 SBIand ICICI should more focus on Retaining existing customers.
 Both bank must focus on Segmentation based on customer knowledge
Product offering based on customer demand.
SBIand ICICI must take feedbacks of customers regarding features & services.

73
 CONCLUSION
In my report I have tried to show the basic different between
the ICICI &SBIBanks. Both the Banks are good in terms of customer satisfactio
n’s has an edge because it is the leading Government regulated
bankin India. ICICI is new to this segment (when compared to SBI) .

SBI preferred because it’s a government bank. Procedure of loan financing

is easyinICICI Bank. Family members & increasing standard of living plays an
important role in influencing the decision of taking home loan.1.SBIBank is
Leading Bank in the country, it provides a variety of products and services to
different segments of
customers.2. The Bank aims to serve customers from teenagers to senior citizen
s, hencedifferent products designed to suit specific requirements of the
above.3. Aims to serve all classes of the society from the salaried middle class
to the high-income business class. Customers are categorized and segmented
according to their requirements and needs.For Example , the Saving Regular
and Plus Account aims to serve middle classcustomers so minimum balance
required to be maintained is RS.5,000/- or RS. 10000.While the Saving Max
Account is targeted at high income customers, the minimumbalance
requirement is RS.25,000.4.SBIBank provides personal loan at low interest rate
which good for customers.5. The Bank prides itself with the ability to provide
differentiate products in the crowedmarket of saving accounts. Bank offers free
insurance, special co-branded debit cardswhich makes it’s product unique

74
 BIBLIOGRAPHY
Text Books:
Solomon, Michael R. , Consumer Behavior: Buying, Having, Being. 5th Ed.
New Jersey: Prentice Hall
Wilson A., Marketing Research: An Integrated Approach
Naresh Ku. Malhotra, Marketing Research: An Applied Orientation, Fifth
Edition

Internet:
www.google.co.in
www.ICICI.com
www.sbi.co.in
www.bnet.com
www.moneycontrol.com

75
 QUESTIONNNAIRE

Name: -
Age: -

Occupation: -

1. On which bank you depend for your regular transaction?

SBI ( ) ICICI ( ) OTHER ( )
Q2. Are you aware of products & services provided bySBI?
YES ( ) NO ( )

Q3. If yes are you aware of the advance products (Loan segments) of SBI?
SBI ( ) ICICI ( ) OTHER ( )

Q4. Which bank you prefer for INVESTMENT?

SBI ( ) ICICI ( ) ICICI ( ) OTHER ( )

Q5. If you have two optionICICI orSBIfor INVESTMENT money in equity which
bank you will prefer SBIor ICICI?
SBI ( ) ICICI ( )

Q.6 Which investment you have done eitherSBIor ICICI?

ULIP ( ) LIFE INSURANCE( ) M.F( ) EQUITY( ) OTHER( )

Q7. What do you feel about the services providing bySBIand ICICI in advance
product?
SBISATISFACTORY( ) GOOD ( ) EXCELLENT ( )
ICICISATISFACTORY( ) GOOD ( ) EXCELLENT ( )

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Q8. Which Bank you would like to choose for investment your money.
SBI ( ) ICICI ( ) OTHER ( )

Q9.Where do you want to invest your money?

REAL STATE ( ) EQUITY ( ) M.F ( ) ULIPS ( )
SEVINGS ( ) FIXED DIPOSIT( ) INSURANCE ( ) OTHER
( )

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