A

PROJECT REPORT ON

“ A COMPARATIVE ANALYSIS OF SBI & ICICI ”

A project submitted to

University of Mumbai for Completion of the degree of

Bachelor of Commerce (Accounting and Finance)

Under the faculty of commerce

By

NEHA AKHTAR HUSSAIN SHAIKH

EXAM SEAT NO : 31

Under the Guidance of

PROF. PRAVAR SHARMA

RAMSHETH THAKUR COLLEGE OF COMMERCE &

SCIENCE ,

PLOT NO . 1, SECTOR — 33 , KHARGHAR, 410210

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 A

PROJECT REPORT ON

“ A COMPARATIVE ANALYSIS OF SBI & ICICI ”

A project submitted to

University of Mumbai for Completion of the degree of

Bachelor of Commerce (Accounting and Finance)

Under the faculty of commerce

BY

NEHA AKHTAR HUSSAIN SHAIKH

EXAM SEAT NO : 31

Under the Guidance of

PROF. PRAVAR SHARMA

RAMSHETH THAKUR COLLEGE OF COMMERCE &

SCIENCE ,

KHARGHAR

PLOT NO . 1, SECTOR — 33 , KHARGHAR, 410210

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 DECLARATION BY LEARNER

I am an undersigned MS. NEHA AKHTAR HUSSAIN SHAIKH hereby, declare that the work
embodied in this project work titled “ A COMPARATIVE STUDY OF FINANCIAL REPORT
OF SBI & ICICI BANK ” form my own contribution to the research work and has not been
previously submitted to any other University for any other Degree / Diploma to this any other University.
Wherever reference has been made to previous work of others, it has been clearly indicated as such and
included in the bibliography.
I , here by further declare that all information of this document has been obtained and presented in
accordance with academic rules and ethical conduct.

Name and signature of the learner

Certified by

Name and signature of the Guiding Teacher

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 ACKNOWLEDGMENT

( Model Structure of the acknowledgment )

To list who all have helped me is difficult because they are so numerous and the depth is so
enormous.

I would like to acknowledge the following as being idealistic channel and refresh
dimensions in the completion of this project.

I take this opportunity to thank the University of Mumbai for giving me chance to do this
project.

I would this like to thank my Principal , Dr RUPENDRA GAIKWAD for providing the necessary

facilities required for completion of this project.

I take this opportunity to thank our Coordinator PROF. PRAVAR SHARMA, for his moral
support and guidance.

I would also like to express my sincere gratitude towards my project guide PROF. PRAVAR

SHARMA whose guidance and care made the project successful.

I would like to thank my College Library , for having provided various reference books and magazines

related to my project.

Lastly, I would like to thank each and every person who directly or indirectly helped me in the completion
of this project especially My Parents and Peers who supported me throughout my project

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 TABLE OF CONTENT
S.NO CONTENTS Page No.

1. Introduction 1-26
- Indian Banking system
- Growth of Banking
- Structure of Indian Banking Sector
- Introduction Of SBI
_ Introduction of ICICI Bank.

2. Introduction Of Topic 27-46

- Product & Services offered

SBI
- Risk Management
- Credit Risk
- Market Risk
- Operational Risk
- Product & Services offered by ICICI Bank
- Risk Management
- Credit Risk
- Market Risk - Operational Risk
- Comparison of Loan and Advances of SBI
and ICICI Bank

- Advantages of ICICI over SBI & Vice Versa.

3. Review of Literature 47-48

4. Objective Research 49

5. Research Methodology 50-52

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 Types of Research
- Sample Area
- Sample Size
- Sources of Data Collection
- Sampling Technique
- Limitation of the Study.
6. Data Analysis and Interpretation 53-63
7. Findings 64

8. Conclusion 65

9. Recommendations 66

10. Bibliography 67

11. Annexure 68-69

-1

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 ➢ INTRODUCTION

A bank is an institution that deals in money and its substitutes and provides other financial services. Banks
accept deposits and make loans or make an investment to derive a profit from the difference in the interest
rates paid and charged, respectively.

In India the banks are being segregated in different groups. Each group has their own benefits and
limitations in operating in India. Each has their own dedicated target market. Few of them only work in
rural sector while others in both rural as well as urban. Many even are only catering in cities. Some are of
Indian origin and some are foreign players.

India’s economy has been one of the stars of global economics in recent years. It has grown by more than
9% for three years running. The economy of India is as diverse as it is large, with a number of major sectors
including manufacturing industries, agriculture, textiles and handicrafts, and services. Agriculture is a major
component of the Indian economy, as over 66% of the Indian population earns its livelihood from this area.
Banking sector is considered as a booming sector in Indian economy recently. Banking is a vital system for
developing economy for the nation.

However, Indian banking system and economy has been facing various challenges and problems which
have discussed in other parts of project

▪ How’s Banks Work ?

. Deposit: Banks accept deposits from individuals, businesses and corporations.

. Loan: Banks make loans to borrowers , either directly or through capital markets.

. Interest: Banks pay interest on deposits and earn interest on loans.

. Profit : Banks make a profit from the difference between the interest they pay on deposits and the interest
They earn on loans .

. Service Banks Offer :

. Financial Management : Banks offer financial management products and services,

including investment ,deposit and account .

. Access to funds: Banks offer access to funds through ATMs, debit card, credit cards and internet and

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 Mobile banking.

• INDIAN BANKING SYSTEM

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.

The Public Sector emerged as the driver of economic growth consequent to the industrial revolution in
Europe. With the advent of globalization, the public sector faced new challenges in the developed
economies. No longer the public sector had the privilege of operating in a sellers market and had to face
competition both from domestic and international competitors.

Further, in the second half of the 20th century in the developed economies, the political opinion started
swinging towards the views that the intervention as well as investment by Government in commercial
activities should be reduced to the extent possible.

Without a sound and effective banking system in India it cannot have a healthy economy. The banking
system of India should not only be hassle free but it should be able to meet new challenges posed by the
technology and any other external and internal factors

For the past three decades India's banking system has several outstanding achievements to its credit. The
most striking is its extensive reach. It is no longer confined to only metropolitans or cosmopolitans in India.

In fact, Indian banking system has reached even to the remote corners of the country This
is one of the main reasons of India's growth process.

The government's regular policy for Indian bank since 1969 has paid rich dividends with the
nationalization
of 14 major private banks of India.

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 ▪ GROWTH OF BANKING

❖ Journey of Indian Banking System can be segregated into three distinct phases. They are as
mentioned below:

• Phase I: Early phase from 1786 to 1969 of Indian Banks

• Phase II: Nationalisation of Indian Banks and up to 1991 prior to Indian banking sector reforms.

• Phase III: New phase of Indian Banking System with the advent of Indian Financial & Banking
Sector
Reforms after 1991.

▪ Phase I

The General Bank of India was set up in the year 1786. Next came Bank of Hindustan and Bengal
Bank. The East India Company established Bank of Bengal (1809), Bank of Bombay (1840) and Bank
of Madras (1843) as independent units and called it Presidency Banks.

These three banks were amalgamated in 1920 and Imperial Bank of India was established which started
as private shareholders banks, and mostly the European, Europeans-shareholders.

In 1865 Allahabad Bank was established and first time exclusively by Indians, Punjab National Bank
Ltd. was set up in 1894 with headquarters at Lahore. Between 1906 and 1913, Bank of India, Central
Bank of India, Bank of Baroda, Canara Bank, Indian Bank, and Bank of Mysore were set up. Reserve
Bank of India came in1935.

During the first the growth was very slow and banks are experienced periodic failure between 1913 and
1948 . There was approximately 1100 banks mostly small

To streamline the functioning and activities of commercial banks, the Government of India came up
with The Banking Companies Act, 1949 which was later changed to Banking Regulation Act 1949 as
per amending Act of 1965 (Act No. 23 of 1965).

Reserve Bank of India was vested with extensive powers for the supervision of banking in India as the
Central Banking Authority.

During those days public has lesser confidence in the banks. As an aftermath deposit mobilization
was slow . After affect of it the saving bank facility provided by the postal department was comparatively
safer.

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 ▪ Phase II

Government took major steps in this Indian Banking Sector Reform after independence. In 1955, it
nationalized Imperial Bank of India with extensive banking facilities on a large scale especially in rural and
semi-urban areas.
It formed State Bank of India to act as the principal agent of RBI and to handle banking transactions of the
Union and State Governments all over the country. Seven banks forming subsidiary of State Bank of India
was nationalized in 1960 on 19th July,
1969, major process of nationalization was carried out. It was the effort of the then Prime Minister of India,
Mrs. Indira Gandhi. 14 major commercial banks in the country were nationalised
Second phase of nationalisation Indian Banking Sector Reform was carried out in 1980 with seven more
banks

This step brought 80% of the banking segment in India under Government ownership. The following are
the steps taken by the Government of India to Regulate Banking Institutions in the Country:

1949: Enactment of Banking Regulation Act.

1955: Nationalisation of State Bank of India.

1959: Nationalisation of SBI subsidiaries.

1961: Insurance cover extended to deposits.

1969: Nationalisation of 14 major banks.

1971: Creation of credit guarantee corporation.

1975: Creation of regional rural banks.

1980: Nationalisation of seven banks with deposits over 200 crore.

❖ After the nationalisation of banks, the branches of the public sector bank India rises to
approximately 800% in deposits and advances it took a huge jump by 11,000%.
❖ Banking under Government ownership gave the public implicit faith and immense confidence in
the sustainability of the banks.

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 ▪ Phase-III
This phase has introduced many more products and facilities in the banking sector in its reforms measure.
In 1991, under the chairmanship of M Narasimham, a committee was set up by his name which worked for
the liberalisation of banking practices
. The country is flooded with foreign banks and their ATM stations. Efforts are being put to give a
satisfactory service to customers. Phone banking and net banking is introduced.
The entire system became more convenient and swift. Time is given more importance than money. The
financial system of India has shown a great deal of resilience. It is sheltered from any crisis triggered by
any external macroeconomics shock as other East Asian Countries suffered.
This is all due to a flexible exchange rate regime, the foreign reserves are high, the capital account is not
yet fully convertible, and banks and their customers have limited foreign exchange exposure

• The introduction of liberalization policies allowed private sector banks to enter the
market, leading to intense competition with state-owned banks.
3. Private Sector Banks and Foreign Banks:
• The entry of private sector banks like ICICI Bank, HDFC Bank, and Axis Bank, alongside
the liberalization of foreign banks, significantly expanded the banking sector’s reach and
sophistication.
• These new entrants introduced modern banking products, customer service practices,
and technology-driven operations, pushing older, public-sector banks to modernize.
4. Technological Advancements:
• The 1990s and 2000s saw the rapid adoption of technology in banking. Core Banking
Solutions (CBS) were introduced to integrate various branches and provide customers
with seamless services.
• Internet banking, ATMs, and mobile banking became increasingly popular, making
banking services more accessible to urban and rural populations alike.
5. Financial Inclusion:
• The Indian government and the RBI focused on increasing financial inclusion, with the
introduction of financial literacy programs and self-help groups.
• The Pradhan Mantri Jan Dhan Yojana (PMJDY), launched in 2014, aimed to provide
banking access to the unbanked population, further expanding the banking network.
6. Regulatory and Prudential Norms:
• The RBI enforced stronger capital adequacy norms and better risk management
frameworks.

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• The banking sector was further strengthened through initiatives like asset quality reviews
and the introduction of the Basel II and III norms to align with global banking standards.
7. Mergers and Consolidations:
• From the late 2000s, there was a wave of mergers and acquisitions in the banking sector,
particularly among public-sector banks, to improve efficiency and reduce operational costs.
For example, SBI merged with its associate banks in 2017, forming a stronger entity.
• The government encouraged this trend to create fewer, stronger public-sector banks.
8. Financial Products and Services:
• Banks started offering a wider array of services, including mutual funds, insurance,
wealth management, and pension products.
• The introduction of credit cards, personal loans, and home loans became more
accessible to a larger portion of the population.
9. Rural and Semi-Urban Growth:
• In Phase 3, there was also an increased focus on expanding banking networks to rural and
semi-urban areas through Regional Rural Banks (RRBs) and increased financial literacy.
• Initiatives like Business Correspondents (BCs) and the use of Mobile Banking helped in
reaching the underserved population.
10. Challenges:
• Despite the growth, the banking sector faced challenges such as rising non-performing
assets (NPAs), especially in the public sector banks, which needed continuous reform.
• The increasing complexity of financial products and the risk of financial mismanagement
required more robust risk-assessment mechanisms.

Conclusion:

In conclusion, the banking industry has grown from a simple service to a complex, globally
integrated sector driven by technology, customer demand, and economic shifts.
Each phase of growth reflects the broader economic, social, and technological changes of its
time, and the future of banking will likely continue to be shaped by digital innovation and
evolving consumer expectations.

▪ THE STRUCTURE OF INDIAN BANKING SECTOR

The Indian banking industry has Reserve Bank of India as its Regulatory Authority. This is a mix
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combination of Private Sector , Public sector , Co- operative banks and Foreign banks.
▪ Fact Files of Banks in India :

• The first bank in India to be given an ISO Certification Canara Bank

• The first bank in Northern India to get ISO 9002 certification for their selected branches

Punjab and Sind Banks

• The first Indian bank to have been started solely with Indian capital Punjab National Bank

• The first among the private sector banks in Kerala to become a scheduled bank in 1946 under the
RBI Act South Indian Bank.

• India's oldest, largest and most successful commercial bank, offering the widest possible

range of domestic, international and NRI products and services, through its vast network in

India and overseas State Banks of India .

• India's second largest private sector bank and is now the largest scheduled commercial bank in
India

The Federal Bank Limited .

• Bank which started as private shareholders banks, mostly Europeans shareholders.

Imperial Bank of India .

• The first Indian bank to open a branch outside India in London in 1946 and the first to open a
branch in continental Europe at Paris in 1974 Bank of India, founded in 1906 in Mumbai.

• The oldest Public Sector Bank in India having branches all over India and serving the customers
for the last 132 years. Allahabad

• The first Indian commercial bank which was wholly owned and managed by Indians .

Central Bank of India

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 ❖ Introduction
Bank of India of SBI
was [ STATE
founded BANK
in 1906 in OF INDIA]
Mumbai. : became the first Indian Bank to open a branch
It
outside India.
The State Bank of India, the country’s oldest Bank and a premier in terms of balance sheet size,
number of branches, market capitalization and profits is today going through a momentous phase of
Change and Transformation – the two hundred year old Public sector behemoth is today stirring out
of its Public Sector legacy and moving with an ability to give the Private and Foreign Banks a run
for their money.
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 on2 June 1806. The bank is operating into many
businesses with strategic tie ups – Pension Funds, General Insurance, Custodial Services, Private
Equity, Mobile Banking, Point of Sale Merchant Acquisition, Advisory Services, structured products
etc – each one of these initiatives having a huge potential for growth.

It is also focusing at the top end of the market, on whole sale banking capabilities to provide India’s
growing mid / large Corporate with a complete array of products and services. It is consolidating its
global treasury operations and entering into structured products and derivative instruments.

Today, the Bank is the largest provider of infrastructure debt and the largest arranger of external
commercial borrowings in the country. It is the only Indian bank to feature in the Fortune 500 list.

SBI have about 8500 of its own 10000 branches and another 5100 branches of its Associate Banks,
today it offers the largest banking network to the Indian customer.
The Bank is also in the process of providing complete payment solution to its clientele with it’s
over
8500ATMs.

It presently has 52 foreign offices in 34 countries across the globe. It has also 5 Subsidiaries in India
–

SBI Capital Markets- SBICAP Securities,

SBI DFHI, SBI Factors and Commercial Services Pvt Ltd (SBI FACTORS),
SBI Funds Management Pvt Ltd (SBI FUNDS) and SBI Cards & Payments Services Pvt. Ltd.
SBICPSL) - forming a formidable group in the Indian Banking scenario.
It is in the process of raising capital for its growth and also consolidating its various holdings.

❖ STATE BANK OF INDIA :

i

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State Bank of India (SBI) is India's largest commercial bank. SBI has a vast domestic network of over 9000
branches (approximately 14% of all bank branches) and commands one-fifth of deposits and loans of all
scheduled commercial banks in India.
The State Bank Group includes a network of eight banking subsidiaries and several non-banking
subsidiaries offering merchant banking services, fund management, factoring services, primary dealership
in government securities, credit cards and insurance.

The eight banking subsidiaries are:

1-State Bank of Bikaner and Jaipur (SBBJ)

2-State Bank of Hyderabad (SBH)

3-State Bank of India (SBI)

4-State Bank of Indore (SBIR)

5-State Bank of Mysore (SBM)

6-State Bank of Patiala (SBP)

7-State Bank of Saurashtra (SBS)

8-State Bank of Travancore (SBT)

The origins of State Bank of India date back to 1806 when the Bank of Calcutta (later called the Bank of
Bengal) was established.
In 1921, the Bank of Bengal and two other Presidency banks (Bank of Madras and Bank of Bombay) were
amalgamated to form the Imperial Bank of India.
In 1955, the controlling interest in the Imperial Bank of India was acquired by the Reserve Bank of India
and the State Bank of India (SBI) came into existence by an act of Parliament as successor to the Imperial
Bank

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of India.

Today, State Bank of India (SBI) has spread its arms around the world and has a network of branches
spanning all time zones. SBI's International Banking Group delivers the full range of cross-border finance
solutions through its four wings - the Domestic division, the Foreign Offices division, the Foreign
Department and the International Services division.
State Bank of India (SBI) (LSE: SBID) is the largest bank in India. If one measures by the number of
branch offices and employees, SBI is the largest bank in the world.
Established in 1806 as Bank of Calcutta, it is the oldest commercial bank in the Indian subcontinent. SBI
provides various domestic, international and NRI products and services, through its vast network.
in India and overseas. With an asset base of $126 billion and its reach, it is a regional banking behemoth.
The
government nationalized the bank in 1955, with the Reserve Bank of India taking a 60% ownership stake

. In recent years the bank has focused on three priorities ;

1), reducing its huge staff through Golden handshake schemes known as the Voluntary Retirement Scheme,
which saw many of its best and brightest defect to the private sector
2), Computerizing it’s operations.

3) Changing the attitude of its employees (through an ambitious programme aptly named 'Pari vartan'
which means change) as a large number of employees are very rude to customers.

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History

The State Bank of India traces its roots to the first decade of 19th century, when the Bank Of Calcutta, later
renamed the Bank of Bengal, was established on 2 June 1806. The Government amalgamated Bank of
Bengal and two other Presidency banks, namely, the Bank of Bombay (incorporated on 15 April 1840) and
the Bank of Madras on 27 January 1921, and named the reorganized banking entity the Imperial Bank of
India. All there Presidency banks had been incorporated as joint stock companies, and were the result of the
royal charters. The Imperial Bank of India continued as a joint stock company. Until the establishment of a
central bank in India the Imperial Bank and it’s a early precedecessors served as India’s central bank, at least
in terms of issuing the currency. The State Bank of India Act 1955, enacted by the Parliament of India,
authorized the Reserve Bank of India, which is the central banking organization of India, to acquire a
controlling interest in the Imperial Bank of India, which was renamed the State Bank of India on 30 April
1955.

* June 2, 1806: The Bank of Calcutta established.

* January 2, 1809: This became the Bank of Bengal.
* April 15, 1840: Bank of Bombay established.
* July 1. 1843: Bank of Madras established.
* 1861: Paper Currency Act passed.
* January 27, 1921: all three banks amalgamated to forms Imperial Bank of India.
* July 1, 1955: State Bank of India formed; becomes the first Indian bank to be nationalized.
* 1959: State Bank of India (Subsidiary Banks) Act passed, enabling the State Bank of India to take over
eight former State-associated banks as its susbsidiaries.

* 1980s When Bank of Cochin in kerala faced a financial crisis, the government merged it with State Bank
of India.

June 29, 2007: The Government of India today acquired the entire Reserve Bank of India (RBI)
shareholding in State Bank of India (SBI), consisting of over 314 million equity shares at a total amount of
over 355 billion rupees.

ABOUT LOGO

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