Professional Documents
Culture Documents
college
Project Report
Submitted in lieu of the partial
fulfillment of the
“ COMPARISION
BETWEEN ; And
Submitted by:-
Submitted to:-
• 1
Avinash kumar
Mrs.Sujata sinha
En no-8nblk058
Faculty of inc
Batch- 2008-2010 Lucknow
CONTENTS
Topic
(PART-A)
• Introduction
• Company profile
• Banking structure
• product
• Major components
(PART-B)
• Introduction of topic
• Research methodology
• 2
• Objective
• Data analysis
• Recommendations
• Conclusions
• Bibliography
• Questionnaire
Acknowledgement
To acknowledge all the persons who had helped for the fulfillment of the
project is not possible for any researcher but in spite of all that it becomes
the foremost responsibility of the researcher and also the part of research
ethics to acknowledge those who had played a great role for the
that began for me over 1 month ago.during the intervening period I have
towards them.
• 3
I would like to thank my colleagues who have supported me through thick
and thin during the last few months.These include Mr.Dev kant, MrAjit
singh.
No amount of thank can ever repay the great debt that I owe My Faculty
guide Mrs. Sujata sinha who has provided me constant inspiration over
the past one year.In fact ,this report Would not have been possible but for
the direct and indirect Support ,inspiration and guidance from Sujata mam
who has been a consant mentor in my efforts over the few months.
Rest all those people who helped me are not only matter of
• 4
PREFACE
Marketing is a social & managerial process by which an individual and group obtain what
they need and want through creating offering and exchanging products of value with others.
Marketing is getting the right good and services to the right people to the
right place, at the right time at the right place with the right
• 5
communication and promotion. It is the art of creating and satisfying
customer at a profit.
it as any paid from and non personal presentation and promotion of ideas,
goods or services.
INTRODUCTION
the most important pre-conditions for sustained economic progress of any country. The world
of banking has assumed a new dimension at the dawn of the 21st century with the advent of
tech banking, thereby lending the industry a stamp of universality. In general, banking may be
• 6
classified as retail and corporate banking. Retail banking, which is designed to meet the
requirements of individual customers and encourage their savings, includes payment of utility
bills, consumer loans, credit cards, checking account balances, ATMs, transferring funds
between accounts and the like. Corporate banking, on the other hand, caters to the needs of
corporate customers like bills discounting, opening letters of credit and managing cash.
The Indian banking scene has changed drastically with the private
that banks can lend on the basis of their respective capital base. These
norms have caused banks to construct equity on their own, before going in
for debt. Disintermediation is a real threat for banks. Of late, banks are
adopting the EVA (Economic Value Added) concept wherein revenues are
The New World order has ensured "Survival of the Fittest". New services
are the order of the day, in order to stay ahead in the rat race. Banks are
• 7
• 8
COMPANY PROFILE
ICICI Bank is India's second-largest bank with total assets of about Rs. 1
trillion and a network of about 540 branches and offices and over 1,000
ATMs. ICICI Bank offers a wide range of banking products and financial
channels and through its specialized subsidiaries and affiliates in the areas
Vadodara, the Stock Exchange, Mumbai and the National Stock Exchange
of India Limited and its American Depositary Receipts (ADRs) are listed on
shares in India in fiscal 1998, an equity offering in the form of ADRs listed
sales by ICICI to institutional investors in fiscal 2001 and fiscal 2002. ICICI
was formed in 1955 at the initiative of the World Bank, the Government of
• 9
India and representatives of Indian industry. The principal objective was to
subsidiaries and affiliates like ICICI Bank. In 1999, ICICI become the first
Indian company and the first bank or financial institution from non-Japan
ICICI and ICICI Bank formed the view that the merger of ICICI with ICICI
Bank would be the optimal strategic alternative for both entities, and
would create the optimal legal structure for the ICICI group's universal
banking strategy. The merger would enhance value for ICICI shareholders
merger would enhance value for ICICI Bank shareholders through a large
corporate relationships built up over five decades, entry into new business
Bank approved the merger of ICICI and two of its wholly owned retail
Capital Services Limited, with ICICI Bank. The merger was approved by
shareholders of ICICI and ICICI Bank in January 2002, by the High Court of
at Mumbai and the Reserve Bank of India in April 2002. Consequent to the
• 11
HISTORY OF COMPANY
ICICI Bank has signed an agreement to use the NCR switch mark
technology for online-networking all its ATMs, the officials said they
strategic business units for retail banking, corporate banking and fore and
1999.
2000
ICICI Bank became the first Indian bank to list on the New York Stock
• 12
SkyCell Communications Ltd, one of the two cellular service providers in
Chennai, has launched `Sky Banking', for which the company has tied up
The ICICI has announced the launch of mobile banking services for its
Ford India has tied up with ICICI Bank to introduce a scheme, enabling
non-resident Indians (NRIs) to purchase a Ford Ikon car for their friends
ICICI Bank has tied up with Chennai Telephones to provide Internet bill
BANKING STRUCTURE
The Indian banking industry, which has Reserve Bank of India as its regulatory
authority, is a mix of the public sector, private sector, and foreign banks. The private sector
banks are again split into old banks and new banks.
• 13
SCHEDULED BANKS
Scheduled commercial banks are those that come under the purview
of the Second Schedule of Reserve Bank of India (RBI) Act, 1934. The
banks that are included under this schedule are those that satisfy the
criteria laid down vide section 42 (60 of the Act). Some co-operative banks
come under the category of scheduled commercial banks though not all
co-operative banks.
the RBI is a majority shareholder. These banks include the State Bank of
India (SBI) and its subsidiaries, other nationalized banks, and Regional
Rural Banks (RRBs). Over 70% of the aggregate branches in India are
those of the public sector banks. Some of the leading banks in this
Central Bank of India, Indian Overseas Bank, State Bank of India, State
UCO Bank, Union Bank of India, Dena Bank and Corporation Bank.
new. The old private sector banks comprise those, which were operating
their small size, and regional operations, these banks were not
nationalized. These banks face intense rivalry from the new private banks
and the foreign banks. The banks that are included in this segment
include: Bank of Madura Ltd. (now a part of ICICI Bank), Bharat Overseas
Bank Ltd., Bank of Rajasthan, Karnataka Bank Ltd., Lord Krishna Bank Ltd.,
The Catholic Syrian Bank Ltd., The Dhanalakshmi Bank Ltd., The Federal
Bank Ltd., The Jammu & Kashmir Bank Ltd., The Karur Vysya Bank Ltd.,
The Lakshmi Vilas Bank Ltd., The Nedungadi Bank Ltd. and Vysya Bank.
The new private sector banks were established when the Banking
several of these banks. After the initial licenses, the RBI has granted no
more licenses. These banks are gearing up to face the foreign banks by
expansion spree, spreading into semi-urban areas and satellite towns. The
leading banks that are included in this segment include Bank of Punjab
Ltd., Centurion Bank Ltd., Global Trust Bank Ltd., HDFC Bank Ltd., ICICI
Banking Corporation Ltd., IDBI Bank Ltd., IndusInd Bank Ltd. and UTI Bank
Ltd.
• 15
FOREIGN BANKS
endorse applications for entry and expansion. Foreign banks, in the wake
of the liberalization era, are looking to expand and diversify. Some of the
such as ATMs, doorstep banking, banking on phone, and net banking. PSBs
also suffer from huge costs of labor and low levels of automation. At this
rate, it may not be long before new channels devised by private banks
today as far as Public Sector banks are concerned are ballooning NPA
• 16
levels, declining margins, poor credit off-take, high overheads, and lack of
good quality assets. Banks are sticking to reliable borrowers for fear of bad
zero risk. With GOI being the single largest borrower, the yields on these
however, at the same time it also wants to retain the controlling stake.
This, it is feared, is not going to solve the problems which PSBs are coping
with now.
• 17
PRIVATE SECTOR BLOOMS
private banks such as ICICI Bank, UTI Bank and IDBI Bank have financial
institutions backing them, others are opting for foreign partnerships for
growth reported in net profits in the year ended March 2000. With a net
profit of Rs.120 crores (+46%), HDFC was the clear leader. IDBI Bank,
however took the cake by doubling its net profit, which reached Rs.60.99
on sale of investments.
• 18
PRODUCT PORTFOLIO
• 19
Treasury Services Bill Payment Services
• 20
PROMOTION
What's on offer
Hello ICICI and HDFC brings you a host of services at your fingertips 365
convenient access to your account coupled with security as, all your
account. But if you do need any assistance our officers will be glad to help
you.
Whats more... this facility comes to you totally free of charge! Some of the
Savings account :
o Dial-a- draft/payorder
Fixed Deposits:
• 21
o Opening a Fixed Deposit
Credit Cards:
o Dial a draft/payorder
o Lost/Replacement card
Centre)
Others:
o Standing Instructions
• 22
RISK MANAGEMENT
Risk is an integral part of the banking business and ICICI Bank aims at the delivery of
superior shareholder value by achieving an appropriate trade-off between risk and returns.
ICICI Bank is exposed to various risks, including credit risk, market risk and operational risk.
Our risk management strategy is based on a clear understanding of various risks, disciplined
risk-assessment and measurement procedures and continuous monitoring. The policies and
procedures established for this purpose are continuously benchmarked with international best
dedicated risk analytics team supports the risk management function at ICICI Bank.
The Risk, Compliance & Audit Group (RCAG) is responsible for assessment,
management and mitigation of risk in ICICI Bank. This group, forming a part of the
the Risk and Audit Committees of the Board of Directors. RCAG is organised into six sub-
groups: Credit Risk Management Group, Market Risk Group, Credit Policies Group, Internet
• 23
CREDIT RISK
Credit risk is the risk that a borrower is unable to meet its financial obligations to the lender.
ICICI Bank measures, monitors and manasgers credit risk for each borrower asnd also at the
portfolio level. ICICI Bank has a standardised credit approval process, which includes a
well-established procedure of comprehensive credit appraisal and rating. ICICI Bank has
developed internal credit rating methodologies for rating obligors as well as for rating. ICICI
Bank has developed internal credit rating methodologies for rating obligors as well as for
product / facilities. The rating factors in quantitative and qualitative issues and credit
enhancement features specific to the transaction. The rating serves as a key input in the
sanction as well as post-sanction credit processes. Credit rating, a as concept, has been well
internalised within the Bank. The rating for every borrower is reviewed as least annually and
for higher risks credits and large exposures at shorter intervals. Sector knowledge has been
the Intranet. Industry knowledge is constantly updated through field visits, interactions with
clients, regulatory bodies and industry experts. In respect of the retail credit business, ICICI
Bank has a system of centralized approval of all products and policies and monitoring of the
retail portfolio. We continuously refine our retail credit parameters based on portfolio
analytics.
• 24
MARKET RISK
Market risk is the risk of loss resulting from changes in interest rates,
HDFC Bank’s exposure to market risk a function of its trading and asset
the light of the current and expected business environment. These sets of
(COD) of the Board. RCAG exercises independent control over the process
• 25
MIDDLE OFFICE GROUP
Interest rate risk is measured through the use of re-pricing gap analysis. Liquidity risk
is measured through gap analysis. HDFC Bank ensures adequate liquidity at all times
stables funding sources such as retail deposits. HDFC Bank mitigates its exposure to
exchange rate risk by stipulating daily stop-loss limits and position limits.
OPERATIONAL RISK
• 26
computer systems and software or equipment, fraud, inadequate training
• 27
FUTURE PROSPECTS OF ICICI AND
HDFC BANK
Future expectations
• Demat-related information
transactions
If you have an HDFC Phone Banking Relationship Number (under which your
accounts are linked to the HDFC Call Centre for HDFC Phone Banking), the same accounts
will be linked for Mobile Commerce. If you do not have an HDFC Phone Banking
Relationship Number, you can specify the account number(s) and your HDFC Credit Card
• 28
ICICI BANK NAMES CONSULTANT
Kolkata.
officials said.
• 29
Monitor Group will find out ways and means for ICICI
flow problems and how ICICI Bank can play a role in the
development.
-ECONOMICS TIMES.
Mumbai: The retail portfolio of ICICI Bank grew by 110 per cent to Rs
25,205 crore (Rs 12,021 crore) in the second quarter. Retail assets
and enhancing its position as the original lender, the bank also continued
• 30
During the first half of this financial year, the total sell down and
its net restructured loans declined to Rs 7,856 crore (Rs 10,491 crore). Net
NPAs were at Rs 3,128 crore, constituting 4.8 per cent of its customer
assets. Deposits grew by 18 per cent to Rs 56,880 crore (Rs 48,169 crore).
facility of E-channels like Internet and Mobile Banking, ICICI Bank brings
banking at your doorstep. Select any of our deposit products and provide
your details online and our representative will contact you for Account
Opening.
• 31
ICICI Bank offers you a power packed Savings Account with a host of
you can bank at your convenience, without the stress of waiting in queues.
We understand that as you reach the age to retire, you do have certain
whether your investments give you the kind of returns that you need.
That's why we have an ideal Banking Service for those who are 60 years
and above. The Senior Citizen Services from ICICI Bank has several
your life.
Young Stars
It's really important to help children learn the value of finances and money
• 32
banking a pleasure and at the same time children learn how to manage
Fixed Deposits
When expenses are high, you may not have adequate funds to make big
investments. But simply going ahead without saving for the future is not
an option for you. Through ICICI Bank Recurring Deposit you can invest
small amounts of money every month that ends up with a large saving on
DOCUMENTATION
• Identity proof
• 33
• Proof of communication address
• Self cheque (if the applicant is not visiting the branch for account
opening)
Proof of communication
Identity Proof
address
(Any one of the following)
(Any one of the following)
& embossed
Voter Identity Card with KYC cheque for Certificate from the postal office
letter.
• 34
service providers (KYC cheque
providers)
electricity bill)
bills
PIO Booklet for returning NRIs Post Office Savings Pass Book with
KYC cheque
company
rank officers
photograph
Passport
India.
Bank Pass Book with photograph issued by SBI and its subsidiaries or
Nationalised Banks
Union territories.
• 36
Domestic term deposits (General Category) :
Note: Rates for Deposits for Rs.1 Crore and above will be advised
1. Eligibility Criteria
senior citizen for getting the benefit under the special deposit scheme for
senior citizens.
2. Verification of Age:
branch should satisfy about the age through verification of any of the
following documents:-
LIC Policy
Passport
PANCard
• 38
*Subject to revision without further notice.
applicable as below:
Features
• Free Access to any Bank's ATM – The next time you want to
withdraw cash from your ICICI Bank account, just walk into any
bank's ATM and use your ICICI Bank ATM-cum-Debit card for as
Savings Account with ICICI Bank. The above benefit can be availed in
Bank branches.
• 39
• You can give us various types of standing instructions like
Minimum Balance
Type of
Balance
Account
Savings
Rs 5,200
Account
Nomination
level
• 40
• Further, the applicant(s) is / are at liberty to change the nominee
A. Repatriable
Repatriable funds (i.e. those which can be taken abroad) need to be kept
made from such funds can be repatriated, i.e. proceeds from sale or
B. Non-repatriable
NRO account loses its repatriability and hence, cannot be transferred back
• 41
Portfolio Investment Scheme (PINS) is a scheme of the Reserve Bank of
India (RBI) under which the 'Non Resident Indians (NRIs)' and 'Person of
Indian Origin (PIOs )' can purchase and sell shares and convertible
B. Non - PINS
4. Investments in derivatives
Deciding Combination :
already hold physical shares in that combination. The physical shares can
• 42
certificates along with a demat request form. You should also open the
PINS NRE : For shares acquired earlier under PINS on repatriation basis.
basis.
Non-PINS NRE : For shares acquired earlier other than under PINS on
repatriation basis.
Non-PINS NRO : For shares acquired earlier other than under PINS on
1. Establishing a Relationship
Identity Proof
Valid photo credit card along with the current billing cycle (latest)
statement
• 44
MAJOR COMPETITORS
MAJOR
STATE BANK OF INDIA
COMPETITORS
It is India's largest bank with assets worth Rs.2, 615 billion. SBI also has
branches. The bank has a share of about 22% of India's loans and
deposits, and is a top player in trade finance and forex. Through its
mutual funds, investment banking, housing finance and factoring. SBI has
banks and SBI and its subsidiaries form the heart of the Indian banking
system. These two entities operate 70% of the total branches spread
BANK OF INDIA
As one of the leading public sector Indian banks, Bank of India has the
distinction of being the first bank to open a branch outside India. The
• 45
one of the leaders in financing foreign trade. It is one of the few Indian
forays made by the bank in terms of its business operations include bullion
banking policy that suits India and other developing countries. The bank,
presence in rural India. The bank was nationalized in 1969. Syndicate Bank
has correspondent relations with 400 banks from all over the globe. The
bank is also one of the leading players in the foreign exchange market.
Indian banks have a long way to go before they reach the size of their
several services are perpetuating the poor ranking of Indian banks in the
• 46
Shareholding structure, government regulations and sheer size of the
country ensure that the existence of Indian banks is not at stake at this
stage. What is at stake is the banking support that is available for Indian
various sectors. What is also at stake is the scope for the banking industry
unable to hold back the international giants from buying out Indian banks.
have been forced to bow before the international capital market forces.
concerted action -
Government
this is changed, we may well see mergers between the two sectors
• 47
Development Bank of India with Bank of Baroda, or even better with
ICICI and ICICI Bank and for that matter between HDFC and HDFC
Domestic Banks
their size, service or skill-set. This could also mean looking beyond the
New Initiatives
The recent crisis in the Far East has demonstrated the need
Hindustan Lever have given to the rural sector proves that private
Social considerations
The full benefit of mergers can only be realized if they are followed
these banks.
Indian banking has to operate with a global mindset even while fulfilling
we will get the banking service we need. Else, we will deserve the banking
service we get.
• 49
(INTRODUCTION OF TOPIC)
The topic of “ COMPARISION BETWEEN ICICI AND HDFC BANK: Banking is the
backbone of a modern economy. Health of banking industry is one of the most important pre-
conditions for sustained economic progress of any country. The world of banking has
assumed a new dimension at the dawn of the 21st century with the advent of tech banking,
thereby lending the industry a stamp of universality. In general, banking may be classified as
retail and corporate banking. Retail banking, which is designed to meet the requirements of
individual customers and encourage their savings, includes payment of utility bills, consumer
• 50
loans, credit cards, checking account balances, ATMs, transferring funds between accounts
and the like. Corporate banking, on the other hand, caters to the needs of corporate
customers like bills discounting, opening letters of credit and managing cash.
The Indian banking scene has changed drastically with the private
that banks can lend on the basis of their respective capital base. These
norms have caused banks to construct equity on their own, before going in
for debt. Disintermediation is a real threat for banks. Of late, banks are
adopting the EVA (Economic Value Added) concept wherein revenues are
New services are the order of the day, in order to stay ahead
in the rat race. Banks are now foraying into net banking,
• 51
RESEARCH METHODOLOGY
action steps, necessary to effectively carry out research and the desired
• 52
a no. of inter-related activities, which overlap and do rigidly follow a
Objective of Study
Research Design
Sample Design
Data Collection
Data Analysis
Report of findings
• 53
OBJECTIVE
• 54
RESEARCH DESIGN
particular study.
• 55
DESCRIPTIVE RESEARCH DESIGN:
Descriptive research studies are those studies which are concerned with
planned. The research design must make enough provision for protection
against bias and must maximize reliability, with due concern for the
SAMPLE DESIGN
• 56
SAMPLE SIZE
• Sample method
• Survey period
SAMPLE SIZE: The substantial portions of the target customer that are
sample size
SAMPLING METHOD:
SAMPLE DESIGN
• 57
SAMPLE TYPE
AREA SAMPLING
Sample area
Lucknow
SAMPLE SELECTION
SAMPLE TECHNIQUE
RANDOM SAMPLING:
A random sample gives every unit of the population a known and non-zero
There is some confusion between the two terms ‘random sampling’ and
sample is drawn ‘with replacement’, which means that the unit selected at
each draw is replaced into the population before another draw is made
• 58
from it, ‘As such, a unit can be included more than once in the sample.
and sample with replacement, the terms ‘sample random sample’ and
manner that no unit can be included more than once, it will then be known
It may be noted that while both sample random sampling and unrestricted
for being included in the sample, there are other sample design too which
sample must be free from bias, which can be ensured only when the
COLLECTION OF DATA
DATA COLLECTION
questionnaire.
• 59
For the purpose of analyzing the data it is necessary to collect the vital
• Primary Data
• Secondary data
PRIMARY DATA:-
questions-
• 60
• Open ended question
• Dichotomous questions
These types of questions are easy to understand and easy to give required
answers.
SECONDARY DATA:-
Secondary data means data that are already available i.e. they refer the
data which have already been collected and analyzed by someone else.
When the researcher utilizes secondary data, than he has to look into
certainly not confronted with the problems that are usually associated
in:
• 61
• Reports and publications of various associations connected with
published information.
The source of unpublished data are many; they may be found in diaries,
COLLECTION TECHNIQUE:
• 62
DATA ANALYSIS
DATA PROCESSING AND ANALYSIS
Processing & Analysis the collected data: - once the field survey is
over and questionnaire have been received, the next task is to aggregate
out the main characteristics of the data. The researcher should have a well
thought out framework for processing and analyzing data, and this should
(i) Editing: the first task in data processing is the editing. Editing is the
responses into meaningful categories with the result that the analysis of
• 63
(iii)Tabulation: tabulation comprises sorting of the data into different
multivariate tabulation.
(iv) Analysis: after the all three above steps, the most important step
is analysis of the data. Under this step, they can use the various
Hypothesis etc.
• 64
Are you having an bank account?
70
60
50
VALUES IN 40
NUMBER 30
70
20
10 30
0
YES NO
YES OR NO
(Figure-1)
1- 70%
• 65
40
35
30
25 38
VALUE IN
NUMBERS
20
15 20
10
5 12
0
ICICI HDFC Other
BANK NAME
(Figure-2)
• 66
70
60
50
VALUES IN 40
NUMBER
30
68
20
10 32
0
YES NO
YES OR NO
(Figure-3)
• 67
Are you planning to get account or loan from any
company?
70
60
50
VALUES IN 40
NUMBER 30
64
20
10 36
0
YES NO
YES OR NO
(Figure-4)
1-
• 68
In which company are you looking to invest?
20
18
16
14
VALUES 12 15
IN 10
NUMBER 8 20
6
4 12
2
0
ICICI HDFC Other
COMPANY'S NAME
(Figure-5)
1-
• 69
If get an opportunity in future would you like to be get
90
80
70
60 83
VALUES IN 50
NUMBER 40
30
20
10 17
0
NO YES
YES OR NO
(Figure-6)
• 70
RECOMMENDATIONS
ICICI Bank and HDFC bank has to improve its brand image, i.e.
in comparisons to others.
customized if needed.
It should provide online training and for those who are in jobs
• 71
training classes, so that they can join the training after doing
there jobs.
CONCLUSION
tool. Research indicates that Indians have four basic financial needs
banking the country has a vast potential, which has been left untapped
till now.
For Banking company Banking advisors are the lifeline and a very
huge asset so each company try to recruit and select a potential force
• 72
strong support to the Bank and do sall possible efforts to generate
BIBLIOGRAPHY
BOOKS:
• 73
QUESTIONNAIRE
PERSONAL DETAILS:
Name Mr./Mrs./Miss__________________________
Address____________________________________
___________________________________________
Email ______________________________________
Occupation
trading/investing in stocks:
1. _________________________________
2. _________________________________
• 74
Q1. Where do you open a account?
ii. ICICI
iii. HDFC
i. ICICI
ii. HDFC
iii. Other
i. ICICI
ii. HDFC
iii. Other
i. Yes
ii. No
• 75
i. Oneself
ii. Broker
iv. Friends/Relatives
v. An other
i. Yes ii. No
Q7. What are the factors which you considered before opening account
in a particular bank?
i. Financial Position
iii. Goodwill
v. Any others.
• 76