“FINANCIAL PERFORMANCE OF SBI AND ICICI”

CONTENTS

S.NO TOPIC PAGE NO.

1 TITLE OF PROJECT

2 CERTIFICATE

3 DECLARATION

4 ACKNOWLEDGEMENT

5 ABSTRACT

6 INTRODUCTION OF SBI BANK

7 INTRODUCTION OF ICICI BANK

8 OBJECTIVE OF THE STUDY

9 RESEARCH METHODOLOGY

10 LIMITATION OF THE STUDY

11 LITERATURE REVIEW

12 DATA COLLECTION
 13 ANALYSIS AND INTERPRETATION

14 FINDINGS AND CONCLUSION

15 REFERENCE

16 QUESTIONARRIE

ABSTRACT

Banking Sector plays an important role in economic development of a country. The

banking system of India is featured by a large network of bank branches, serving many
kinds of financial services of the people. The State Bank of India, popularly known as
SBI is one of the leading bank of public sector in India. SBI has 14 Local Head Offices
and 57 Zonal Offices located at important cities throughout the country. ICICI Bank is
second largest and leading bank of private sector in India. The Bank has 2,533 branches
and 6,800 ATMs in India. The purpose of the study is to examine the financial
performance of SBI and ICICI Bank, public sector and private sector respectively. The
research is descriptive and analytical in nature. The data used for the study was entirely
secondary in nature. The present study is conducted to compare the financial
performance of SBI and ICICI Bank on the basis of ratios such as credit deposit, net
profit margin etc. The period of study taken is from the year 2010-11 to 2014-15. The
study found that SBI is performing well and financially sound than ICICI Bank but in
context of deposits and expenditure ICICI bank has better managing efficiency than
SBI. Based on the study, it can be said that SBI have an extensive operation than ICICI
Bank.

LIST OF TABLES AND FIGURES WITH PAGE NUMBER

S. NO TITLE PAGE NO
1 Table 1.1 Credit deposit ratio
Fig. no. 1.1 Credit deposit ratio
2 Table 1.2 Interest expenses to total expenses
Fig.no.1.2 Interest expenses to total expenses
3 Table 1.3 Interest income to total income
Fig.no.1.3 Interest income to total income
4 Table 1.4 Other income to total income
Fig.no.1.4 Other income to total income
5 Table-1.5 Net profit margin
Fig. no.1.5 Net profit margin
6 Table no.1.6 Net worth ratio
Fig.no.1.6 Net worth ratio
7 Table 1.7 Growth of profit
Fig.no.1.7 Growth of profit
8 Table 1.8 Growth in total income
Fig.no.1.8 Growth in total income
9 Table 1.9 Total expenditure
 Fig.no.1.9 Total expenditure
10 Table 1.10-Total advances
Fig.no.1.10 Total advances
11 Table 1.11 Total deposits

Fig. no.1.11 Total deposits Table

INTRODUCTION OF BANKING

Definition Of Bank:

Banking Means "Accepting Deposits for the purpose of lending or Investment of deposits of money from the
public, repayable on demand or otherwise and withdraw by cheque, draft or otherwise."

-Banking Companies (Regulation) Act,1949

ORIGIN OF THE WORD “BANK”:-

The origin of the word bank is shrouded in mystery. According to one view point the Italian business house
carrying on crude from of banking were called banchi bancheri" According to another viewpoint banking is
derived from German word "Branck" which mean heap or mound. In England, the issue of paper money by the
government was referred to as a raising a bank.
ORIGIN OF BANKING :

Its origin in the simplest form can be traced to the origin of authentic history. After recognizing the benefit of
money as a medium of exchange, the importance of banking was developed as it provides the safer place to
store the money. This safe place ultimately evolved in to financial institutions that accepts deposits and make
loans i.e., modern commercial banks.

Banking system in India

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.

 HISTORY OF BANKING IN INDIA

Banking in India has its origin as early or Vedic period. It is believed that the transitions from many lending to
banking must have occurred even before Manu, the great Hindu furriest, who has devoted a section of his
work to deposit and advances and laid down rules relating to the rate of interest. During the mogul period, the
indigenous banker played a very important role in lending money and financing foreign trade and commerce.

During the days of the East India Company it was the turn of agency house to carry on the banking business.
The General Bank of India was the first joint stock bank to be established in the year 1786. The other which
followed was the Bank of Hindustan and Bengal Bank. The Bank of Hindustan is reported to have continued till
1906. While other two failed in the meantime. In the first half of the 19th century the East India Company
established there banks, The bank of Bengal in 1809, the Bank of Bombay in 1840 and the Bank of Bombay
in1843. These three banks also known as the Presidency banks were the independent units and functioned
well. These three banks were amalgamated in 1920 and new bank, the Imperial Bank of India was established
on 27th January, 1921.

With the passing of the State Bank of India Act in 1955 the undertaking of the Imperial Bank of India was taken
over by the newly constituted SBI. The Reserve Bank of India (RBI) which is the Central bank was established in
April, 1935 by passing Reserve bank of India act 1935. The Central office of RBI is in Mumbai and it controls all
the other banks in the country.

In the wake of Swadeshi Movement, number of banks with the Indian management were established in the
country namely, Punjab National Bank Ltd., Bank of India Ltd., Bank of Baroda Ltd., Canara Bank. Ltd. on 19th
July 1969, 14 major banks of the country were nationalized and on 15th April 1980, 6 more commercial private
sector banks were taken over by the government.

The first bank in India, though conservative, was established in 1786. From 1786 till today,the journey of
Indian Banking System can be segregated into three distinct phases. They areas mentioned below:

 Early phase from 1786 to 1969 of Indian Banks

 Nationalization of Indian Banks and up to 1991 prior to Indian banking sector Reforms.

 New phase of Indian Banking System with the advent of Indian Financial & Banking Sector Reforms
after 1991.

To make this write-up more explanatory, I prefix the scenario as Phase I, Phase II and Phase III.

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, mostly 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 in
1935.

During the first phase the growth was very slow and banks also experienced periodic failures between 1913
and 1948. There were 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 day’s public has lesser confidence in the banks. As an aftermath deposit mobilization was slow.
Abreast of it the savings bank facility provided by the Postal department was comparatively safer. Moreover,
funds were largely given to traders.

Phase II

Government took major steps in this Indian Banking Sector Reform after independence. In1955, 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 was nationalized.

Second phase of nationalization 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 BankingInstitutions in the Country:

 1949: Enactment of Banking Regulation Act.

 1955: Nationalization of State Bank of India.
 1959: Nationalization of SBI subsidiaries.
 1961: Insurance cover extended to deposits.
 1969: Nationalization of 14 major banks.
 1971: Creation of credit guarantee corporation.
 1975: Creation of regional rural banks.
 1980: Nationalization of seven banks with deposits over 200 crore.

After the nationalization of banks, the branches of the public sector bank India rose to approximately 800% in
deposits and advances took a huge jump by 11,000%.

Banking in the sunshine of Government ownership gave the public implicit faith and immense confidence
about the sustainability of these institutions.

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
liberalization 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.

INTRODUCTION
The banking industry plays an important role in the economic development of a
country. It supplies the lifeblood-money that supports and fosters growth in all the
industries. Growth of the banking sector is measured by the increase in the number of
banks’ branches, deposits, credit, etc. In analyzing the banking sector, it indicates the
direction in which the country’s economy is moving. India has about 88 commercial
banks including 31 private banks, 27 public sector banks, and 38 foreign banks and in
total, 53,000 bank branches, and 17,000 ATMs are servicing the nation. Public sector
banks dominate the segment with 75 per cent of the total assets of the industry held by
them. State Bank of India (SBI) and ICICI Bank are the two largest banks in India in
public and private sector.
State Bank of India (SBI)
SBI is the oldest bank of India and India’s largest commercial bank, which is a
government, owned bank was established in 1806. The bank provides a wide array of
banking products through their effective network not only in India but also overseas.
The bank has about 18,266 branches, including 4,724 branches of its five Associate
Banks, and is also accountable for one-fifth of the loans of India. It has about 8500
ATMs across the nation.
ICICI Bank
 This is the second largest private sector bank in India having 2,552 branches and 7,440
ATMs spread across the country. It is among the top commercial banks of India
providing a wide range of banking services through varied delivery channels. Besides
offering high-end banking facilities such as Internet banking, Tele Banking, and Mobile
Banking, ICICI also plays a pivotal role in the domains of investment banking, venture
capital and asset management, and life and non-life insurance. The bank spreads its
wings in 18 countries across the world including UK, Canada, Russia, and others.

LITERATURE REVIEW

1. Dr. Jayesh Pravinchandra Vora, BBA,M.Com, Ph.D. [November 2013] made a

comparative study of financial performance of Bank of Baroda and Punjab National
Bank from 2007-08-2011-12 and found that Punjab National Bank is performing better
than Bank of Baroda.
2. Ashwini Kumar Mishra et. Al (2013) concluded that private sector banks are at the top
of the list with their performance in terms of soundness being best and public sector
bank will head towards convergence faster than private sector banks.
3. Dr. K. Madhusudhana Rao, Associate professor, L. university, Green fields, Andhra
Pradesh [June 2014] made a comparative analysis on the performance of state Bank of
India and HDFC from 2008-09 to 2012-13 and found that State Bank of India is
 performing well and sound than HDFC but in context of deposits and expenditure both
State bank of India and HDFC has better managing efficiency.
4. Pooja Sharma, Hantala, Assistant Professor, Department of MBA,E-Max Group of
Institutions Ambala[February 2014] made a comparative analysis of the financial
performance of ICICI bank and State Bank of India from 2008-09 to 2012-13 and found
that State Bank of India is performing better than ICICI bank as it is able to generate
more loan from its deposit to its customers.
This chapter presents the review of literature related to the study undertaken. The purpose of this part
is to understand the results of various studies already undertaken in the relevant field and to find out
the research gap in the present study. The literature pertaining to the study on “Efficiency, Profitability
and Financial soundness of scheduled commercial banks in India – Application of CRAMEL and
Bankometer Models” are provided under the following headings:

Vashist (1987) in his empirical work on “Performance Appraisal of Commercial

Banks in India” evaluated the performance of public sector banks with regard to six indicators
i.e., branch expansion, deposits, credit, priority sector advances, DRI advances and net profit over the
period of 1971-83. A composite weighted growth index was developed to rank the banks and to
classify them into four performance levels viz., excellent, good, fair and poor. The study ranked
Indian Overseas Bank at the top and Dena Bank at the bottom. The study stressed the need to
check the working of commercial banks for ensuring rapid and healthy growth in future and to
improve the performance of commercial banks. The study suggested: (i) the development of
marketing strategy for deposit mobilization, (ii) profit planning, and (iii) SWOT (Strengths,
Weaknesses, Opportunities and Threats) analysis in banks.

Robinson (1988) framed a proposal for the Jamaican Banking System based on
the effect of the 1988 Basle Accord Guidelines. The 1988 Basle Accord required that all major
international banks operating in the G10 nations maintain minimum capital of 8% to risk-
weighted on- and off-balance-sheet items, by end-1992. The data include 32 major banks
operating in Canada, Japan, the United Kingdom and
the United States. Using data from 1984 to 1992, growth rates the in capital; assets and
profitability are estimated using OLS regression. It is determined that during the time period
banks with low capital generally increased capital ratios and decreased balance sheet assets more
than banks with high capital. However, banks in the different countries changed assets and capital
in different ways in order to meet the end-1992 requirements. Growth rates in profitability are
not significantly affected by changes in risk-based capital ratios. Based on the above analysis,
the study provides some recommendations for the introduction of the Basle Accord Guidelines
into the banking system in Jamaica.

Karunagaran and Benjamin (1989) analysed the performance of commercial banks in

Tamil Nadu during 1969 to 1986. The analysis was carried out with the help of indicators like
population coverage by banks, distribution of their branches, deposits and advances in different
population groups. The progress of commercial banks in the State was also compared with that
of the country as a whole. The results of analysis revealed that, by and large, the banking
industry in Tamil Nadu was not in a good state of health.

Ramachandran (1992) observed that the profitability of banks is on the decline. In his
paper, he traced out in brief the causes for declining profitability and suggests possible measures
for arresting this trend. The main causes among others traced by the author are (a) emphasis on
social goal (b) increase in establishment cost (c) blocking fund in sick unit (d) compliance with
statutory requirement (e) rural branch expansion
(f) leakage in income (g) poor cash management and others.

Amandeep (1993) in her study on profitability of commercial banks has attempted to

examine the trends in profits and profitability of 20 nationalized commercial banks, with the help
of trend analysis, ratio analysis and concentration indices of the selected parameters. The study
focuses on identifying the various factors and empirical testing as to which of the identified
factors have significantly contributed towards bank profitability in either direction. Using the
multivariate analysis, the study concluded that it is the efficient management of the burden (as
against the widely believed „spread‟ element), which plays a major role in determining the
profitability of commercial banks. In spite of lack of control of few determinants of burden, it is
inferred that judicious management of the burden can significantly enhance bank profitability.

Chidambaram and Alamelu (1994) studied the problem of declining profit margin in
Indian public sector banks as compared to their private sector counterparts. It
was observed that in spite of similar social obligations, almost all the private sector banks have
been registering both high profits and high rate of growth, with respect to deposits, advances and
reserves as compared to public sector banks. Better customer service, technology, innovative
products and good marketing strategies, proper monitoring of advances and regional orientation
are some of the factors responsible for the success of private sector banks in India.

A study sponsored by the World Bank (1995) and done by a private consultancy
organization analysed the problem of poor profitability of commercial banks and regional rural
banks in India during early 1990‟s. The study revealed that on account of comparatively small
operating income on the one hand, and high operating expenses on the other, the commercial
banks have been incurring losses. It was suggested that for commercial banks minimum lending
rate should be between 16.69 and 17.6 per cent. It was observed further, that the commercial
banks can improve their financial health by reducing their operating cost as well as through a
decrease in loan loss provisions. Further, the study suggested that there should be a complete
deregulation of interest rates in rural loans persuaded by different institutions. The rural
operations of the commercial banks can be self-sustaining if loan appraisal and their repayment
follow-up systems are tightened.

Thamkirati (1996) studied the relationships among the effects of Banking Deregulation,
Asset Management ratios and Profitability of the Banking Industry in Thailand. The purpose of
this study was to examine the relationships among the regulatory variables, strategic alternatives,
and performance variables of the commercial banks in Thailand, in terms of their composition of
loans, sources of interest income, and asset management. A descriptive-correlation method was
used to empirically investigate the expected differences of the pre and post-deregulation periods.
The major findings of the study were: under deregulation, the average ratio of personal to
commercial loans and the amount of total assets increased, as did the ratio of net interest income
to total assets. However, deregulation did not influence the income performance of Thai
commercial banks in the post-deregulation period (1990-1993).

Sarkar and Das (1997) highlighted the performance of public, private and foreign banks
by using measures of profitability, productivity and financial management for the year 1994-95.
They found that public sector banks are competing poorly with the other two categories.
However, they caution that no firm inference can be derived from a comparison made for a
single year.
 Sarkar et al. (1998) compared performance across the three categories of banks-public,
private and foreign banks in India, using two measures of profitability, returns on assets and
operating profit ratio, and four efficiency measures, namely, net interest margin, operating profit
to staff expense, operating cost ratio and staff expense ratio. They found that, in the comparison
between private banks and PSBs, there was only a weak ownership effect. Traded private banks
were superior to PSBs with respect to profitability measures but not with respect to efficiency
measures. Non-traded private banks did not significantly differ from PSBs in respect of either
profitability or efficiency. There was, however, a strong ownership effect between foreign banks
and private banks, with the former outperforming the latter with respect to all indicators. The
authors conclude that private enterprises may not be unambiguously superior to public
enterprises in a developing economy.

Bhatia and Verma (1998) made an attempt to determine empirically the factors
influencing profitability of public sector banks in India by making use of the technique of
multiple regression analysis. Net profit as percentage of working funds has been used to measure
the bank profitability during 1971 to 1995. The analysis revealed that priority sector advances,
fixed/ current deposit ratio and establishment expenses affected the profitability of public sector
banks negatively. Net spread, which to a great extent depends on the management acumenship of
the bank staff, influenced the profitability of banks positively and significantly. It was also
observed that high credit-deposit ratio positively influencing profitability.

Ganesan (1998) in his study on “Priority Sector Advances vis-à-vis Profits and
Profitability of Public Sector Banks in India (1969-1993)” analysed the following aspects: i)
economies of priority and non-priority sector transactions with reference to spread, burden and
surplus; ii) the use of efficiency, liquidity and profitability ratios to assess the operational
efficiency; iii) determinants of profitability to derive a profit function model; and iv) the
economies of scale regarding cost, production and profit functions. Finally, the study pinpoints
certain ideas for the improvement of profitability and the technical change to be made to recover
the over dues of priority sector advances.

Nayak (2001) made an attempt to compare liquidity, productivity and profitability of

foreign and domestic banks in India during 1985 -86 to 1996-97. The study is based n bank-wise
secondary data on a number of variables like employees, branches, total assets, interest paid and
expended, total deposits and advances, profits and expenses. The results revealed that productivity
in terms of labour, branches and profitability was higher in foreign banks than the domestic banks.
Foreign banks are least involved in socio- economic policies of the government, on account of which
they registered higher profits.

Singh (2001) made an attempt to assess the impact of the reforms on the operational
performance and efficiency of the commercial banks in India. The ratio analysis has been used as
a major tool for assessing the performance of the selected commercial banks. The study revealed
that total income as a percentage of working funds and /or total assets, spread as a percentage of
total income and total advances to total deposits have improved in the post-reform period against
the pre-reform in most of the banks. Total interest income earned, other income, spread, total
expenses, interest expended, operating expenses and establishment expenses are comparatively
more consistent in the post –reform period. The hypothesis that the profitability position has
improved in post-reform period may be accepted to some extent. It was observed that in the
public sector banks the size of NPAs has also reduced to some extent and quality of service has
improved in the post-reform period. The priority sector lending has registered a decline in the
deregulation era.

Mohan (2002) conducted a study on “Deregulation performance of Public sector Banks”

for a period of 1996-97 to 1999-2000 and found that over these years the profitability of the
Public Sector Banks did improve in comparison to the Private and Foreign Banks, but they have
lagged behind in their ability to attract deposits at favorable interest rates and have been slow in
technology gradation and improving staffing and employment practices, which may have
negative implication on their long term profitability.

Bhattacharyya et al. (1997) evaluated the impact of limited liberalization initiated

before the deregulation of the 1990s on the performance of various categories of banks, using
Data Envelopment Analysis. Their study covered 70 banks during the period of 1986-91. They
constructed on grand frontier for the entire period and measured the technical efficiency of the
banks under study. The author used advances, investments and deposits as outputs and interest
expense and operating expense as inputs. They found that public sector banks had the highest
efficiency among the three categories, with private and foreign banks having much lower
efficiencies. However, public sector banks started showing a decline in efficiency, private sector
banks showed no changes and foreign banks showed a sharp rise in efficiency. The major results
accord with the general perception that in nationalized era, public sector banks were successful
in achieving their principal objectives of deposits and loan expansion.

Amandeep (1991), in her doctoral work titled, “Profits and Profitability of Indian
Nationalised Banks” opined that the banks have become an instrument to meet effectively the
needs of the development of the economy to effect the total socio- economic transformation. It
has adversely affected the profitability of the bank operations. According to the researcher, the
profitability of a bank is determined and affected mainly by two factors: spread and burden. The
other factors determining bank‟s profitability are credit policy, priority sector lending, massive
geographical expansion, increasing establishment expenses, low non-fund income, deposit
composition etc. The researcher has chosen 11 factors affecting a bank‟s profitability to identify
the most significant variable affecting its profitability. The study recommended the banks to
focus their attention on the management of spread, burden, establishment expenses, non-fund
income and deposit composition. The banks need to adequately charge for various non- fund
services (like merchant banking, consultancy, and factoring services) with proper cost benefit
analysis, to have maximum profitability.

The Reserve Bank of India (2000) studied that how deregulation has affected the bank‟s
performance. The RBI‟s study covered all categories of the banks. It was observed that there has
been a decline in spreads and a tendency towards their convergence across all the bank groups
except foreign banks. Intermediation costs as percentage of total assets was also found to have
declined especially for the public sector banks and new private sector banks, largely due to a
decline in their wage cost. Capital adequacy and asset quality have both improved over the
period 1995-96 to 1999- 2000. Further, it was found that non-interest income to working funds
also rose modestly for the public sector bank. The cost to income ratio declined both in the State
Bank of India group and the Nationalised Banks Group.

Toor (2000) identified and examined the problems of weak banks and suggested a
strategic plan of financial, organizational and operational restructuring for them. The committee
on the basis of seven parameters covering solvency, earning capacity and profitability evaluated
the public sector banks. These were, CAR -8 per cent, coverage ratio -0.50 per cent, return on
assets –median level, net interest margin – median level,
profit to average working funds – median level, ratio of cost to income – median level, and ratio
of staff cost to income – median level for the years 1997-98 and 1998-99. The Committee
identified that Indian Bank, UCO Bank and United Bank of India were weak banks and
recommended recapitalisation of these banks subject to strict conditionality relating to
operational restructuring.

Garai et al. (2001) in their study assigned ranks to the different scheduled commercial
banks (68 in numbers) on the basis of their performance score. The study is confined to the
period of 1995-96 to 1997-98 and six indicators reflecting different aspects of banks‟ operating
efficiency were selected. The weights were assigned on the basis of multi-group discriminant
analysis. The ranking of banks with respect to their performance did not change much during the
period under context. The existence of group difference was also examined applying parametric
test procedure. The results confirmed the view that the performances of public sector banks were
generally not good enough in comparison with those of private and foreign banks.

Ganesan (2001) examined the determinants of profitability of public sector banks by an

empirical estimation of profit function model which showed that interest cost, interest income,
other income, deposits per branch, credit to total assets, proportion of priority sector advances to
interest income are the significant determinants of profit and profitability of Indian public sector
banks. He concluded that the average establishment cost positively contributes to the
profitability but in adversely affects the net profit of the public sector banks.

D'souza (2002) in his study evaluated the performance of public sector, private sector
and foreign banks during the period 1991 to 2000. The efficiency of the banking system was
measured in terms of spread/working funds ratio and turnover / employee ratio. With reference
to the spread to working funds ratio, the efficiency of the commercial banks as a whole has
declined in the post-reform period. The public sector banks have been responsible for this
decline in efficiency, as the efficiency of the private and foreign banks has improved over the
course of 1990s. Through the turnover/employee ratio has risen in the public sector banks, the
turnover per employee in the private and foreign banks doubled relative to the ratio for public
sector banks during this decade. However, the analysis revealed that the profitability of the
public sector banks in late nineties improved relatively to that of private and foreign banks.

Mohan (2002) in his study evaluated the performance of the public, private and foreign
banks since deregulation in absolute and in relative terms, and attempts to understand the factors
behind their improved performance. It was observed that the efficiency of the banking system as
a whole measured by declining spreads. The performance of public sector banks had improved
both in absolute and relative terms. He alludes the Indian banking industry for its ability to keep
its head above water log after deregulation. Further, he takes up issues of trade-off between
efficiency and stability in banking. It was observed that efficiency should not be at the cost of
stability. He cautions that Indian experience so far suggests that government ownership might
conduce to such trade off.

Chaudhuri (2002) examined some important relevant issues relating to growth and
profitability in the public sector banks for the year 1995-2001. He opined that the public sector
banks are facing triple jeopardy. First they are losing market share, second their profitability is
being seriously squeezed and lastly their balance sheets are not strong and their sovereign
support, which had buttressed them so far, is becoming open to question. The reason for the less
than enviable condition of the public sector banks are many, but a principal operative factor
derives from the nature of their ownership and what that translated in terms of goal and
priorities. However, it was concluded that the public sector banks in India are neither very strong
nor very weak. But they do not have any further capacity to bear the burden of pursuing
government policies.

The study carried out by CRISIL (2002) concluded that lower operating expenses
improved the profitability of banks, contrary to the popular perception that only trading profits
helped the banking sector shore up their bottom lines. The reduction in operating expenses
became possible through large scale VRS implemented by PSBs. As this reduction in operating
expenses seems sustainable, a brighter future for the banking sector in India is expected. The
study concluded that the banking sector is now reaping the benefits of rationalization of
employee costs, and undertaking various other cost- reduction initiatives. The study pointed out
that banks ability to repeat and sustain such initiatives would be a deciding factor in improving
the productivity and profitability of the banks.

Shirai (2002) assessed the impact of reforms by examining the changes in the
performance of banking sector. It is found that the performance of public sector banks improved in
the second half of the 1990‟s. Profitability (measured by the return on assets) of

nationalized banks turned positive in 1997-2000 and that of SBI group have steadily improved
their cost efficiency over the reform period. Even though foreign banks and private sector banks
performed better than the public sector banks in terms of profitability, earning efficiency
(measured by ratio of income to assets), and cost efficiency in the initial stages, such differences
have diminished as public sector banks have improved profitability and cost efficiency.

Singh (2003) in his paper “Profitability management in banks under deregulate

environment” has analyzed profitability management of banks under the deregulated
environment with some financial parameters of the major four bank groups i.e. public sector
banks, old private sector banks, new private sector banks and foreign banks, and found that the
profitability has declined in the deregulated environment. He emphasized to make the banking
sector competitive in the deregulated environment they should prefer non-interest income
sources.

Pathak (2003) while comparing the financial performance of private sector banks since
1994-95, explained that the private sector banks have delivered a new banking experience.
Looking to the growing popularity of services provided by them, their public sector counterparts
have started emulating them. He studied the performance of these banks in terms of financial
parameters like deposits, advances, profits, return on assets and productivity. In this paper, the
author made an attempt to have an insight into the financial operation of these institutions. A
sample of five banks has been taken for financial analysis. A financial track record of all these
banks was evaluated, and their financial performance was compared. The working of all the
constituents was satisfactory and the HDFC Bank emerged as a top performer among them
followed closely by the ICICI Bank.
 RESEARCH METHODOLOGY

OBJECTIVE OF THE STUDY

I. To compare the financial performance of State Bank of India and ICICI Bank.
ii. To know and compare the profitability position of State Bank of India and ICICI
Bank.
iii. To know and compare the managerial efficiency of State Bank of India and ICICI
Bank.
iv. To offer findings and suggestions to enhance the financial performance of State
Bank of India and ICICI Bank.

5.1 Research Design

Descriptive Research Design is used for the study and it is essentially a fact-finding
approach. It aims to explain the characteristics of an individual or group characteristics
and to determine the frequency with the same things occurs.
5.2 Sample Design
Deliberate sampling technique is used for the study. This sampling method involves
purposive or deliberate selection of particular units of the world for constituting a
sample that represents the population.
5.3 Selection of the Sample Units
Banking sector in India is considered one of the fastest growing financial institutions in
the world. Using purposive sample, State Bank of India and ICICI Bank were selected
as the sample units for the study. The sample units selected were considered one of the
successful units in the banking sector.
5.4 Data Collection
The data were collected through annual report from sources that are secondary in nature
such as internet, magazines, websites, books, and journals.
5.5 Period of study
This study covers a period of five years, i.e., from 2010-11 to 2014-15
5.6 Tools Applied
The data collected were moderated for the study. The major tools applied for the
analysis of the data are ratios, percentages, and t-test.
 LIMITATION OF THE STUDY

Due to constraints of time and resources, the study is likely to suffer from certain
limitations. Some of these are mentioned here under so that the findings of the study
may be understood in a proper perspective. The limitations of the study are:
 The study is based on the secondary data and the limitation of using secondary
data may affect the results.
 The secondary data was taken from the annual reports of the SBI and ICICI
Bank. It may be possible that the data shown in the annual reports may be
window dressed which does not show the actual position of the banks.
Financial analysis is mainly done to compare the growth, profitability and financial
soundness of the respective banks by diagnosing the information contained in the
financial statements. Financial analysis is done to identify the financial strengths and
weaknesses of the two banks by properly establishing relationship between the items of
Balance Sheet and Profit & Loss Account. It helps in better understanding of banks
financial position, growth and performance by analyzing the financial statements with
various tools and evaluating the relationship between various elements of financial
statements.

FOR THIS PURPOSE THE FOLLOWING PARAMETERS HAVE BEEN

STUDIED

1) Credit deposit ratio.

2) Interest expenses to total expenses.
3) Interest income to total income.
4) Other income to total income.
5) Net profit margin.
6) Net worth ratio.
7) Percentage change in net profit.
8) Percentage change in total income.
9) Percentage change in total expenditure.
10) Percentage change in deposit.
 11) Percentage change in advances.

CREDIT DEPOSIT RATIO:

Credit deposit ratio is the proportion of loan asset created by a bank from the deposit
received. Credits are the loan and advances granted by the bank. In other words, it is the
amount lend by the bank to a person or an organization which is recovered later on,
interest is charged from the borrower.

TABLE 1.1 - CREDIT DEPOSIT RATIO

(IN PERCENT)
YEAR SBI ICICI
2010-11 77.57 84.99
2011-12 74.97 91.44
2012-13 73.56 90.04
2013-14 76.32 87.81
 2014-15 78.50 92.23
MEAN 76.184 89.302
CGR 1.19 8.51
Source: Annual Reports of SBI and ICICI from 2010-11 to 2014-15
FIG. NO. 1.1- CREDIT DEPOSIT RATIO

14
Table 1.1 depicts that over the course of five financial periods of study the mean of
Credit Deposit Ratio in ICICI was higher (89.302%) than in SBI (76.184%). But the
Compound Growth Rate in SBI lowers 1.19% than in ICICI (8.51%). In case of SBI the
credit deposit ratio was highest in 2014-15 and lowest in 2012.13. But in case of ICICI
Credit Deposit Ratio was highest in 2014-15and lowest in 2010-11. This shows that
ICICI Bank has created more loan assets from its deposits as compared to SBI.

INTEREST EXPENSES TO TOTAL EXPENSES:-

Interest Expenses to Total Expenses reveals the expenses incurred on interest in
proportion to total expenses. Banks accepts deposits from savers and pay interest on
these accounts. This payment of interest is known as interest expenses. Total expenses
include the amount spent in the form of staff expenses, interest expenses, overhead
expenses and other operating expenses etc.

TABLE 1.2:- INTEREST EXPENSES TO TOTAL EXPENSES

(IN PERCENT)
YEAR SBI ICICI
2010-11 61.85 66.135
2011-12 63.27 64.10
2012-13 61.62 60.71
2013-14 54.93 60.70
2014-15 57.90 65.19
MEAN 59.9 65.36
CGR -6.38 -1.46

Source: Annual Reports of SBI and ICICI from 2010-11 to 2014-15.

15

FIG.NO.1.2:- INTEREST EXPENSES TO TOTAL EXPENSES

The table 1.2 shows that the ratio of interest expenses to total expenses in SBI was
highly volatile it increased from 61.85 per cent to 63.27 per cent during the period
2010-11 to 2011-12. Afterwards it was decreased till 2013-14 and then again increased
to 57.90 per cent. The ratio of interest expenses to total expenses in ICICI was also
decreased from 66.135 per cent to 64.10 per cent during the period 2010-11 to 2011-12.
It remain stable from 2011-12 to 2012-2013 but Further it was increased to 65.19 per
cent in 2014-15. It has been found that the share of interest expenses in total expenses
was higher in case of SBI as compared to ICICI, which shows that people preferred to
invest their savings in SBI than ICICI.
INTEREST INCOME TO TOTAL INCOME:-
Interest Income to Total Income shows the proportionate contribution of interest income
in total income. Banks lend money in the form of loans and advances to the borrowers
and receive interest on it. This receipt of interest is called interest income. Total income
includes interest income, non-interest income and operating income.

TABLE 1.3:-INTEREST INCOME TO TOTAL INCOME IN SBI AND ICICI

(IN PERCENT)
YEAR SBI ICICI

2010-11 83.89 77.61

2011-12 83.40 79.29

2012-13 82.58 77.90

2013-14 84.49 78.51

2014-15 88.12 80.92

MEAN 84.49 78.84

CGR 5.04 4.26

Source: Annual Reports of SBI and ICICI from 2010-11 to 2014-15.

 FIG.NO.1.3 INTEREST INCOME TO TOTAL INCOME IN SBI AND ICICI

The table 1.3 represents that the ratio of interest income to total income in SBI and
ICICI both is quite stable and volatile over the years. The growth rate of SBI is 5.04
while that of ICICI is 4.26. Thus, the proportion of interest income to total income in
SBI was higher than that of ICICI, which shows that people preferred SBI to take loans
and advances.
OTHER INCOME TO TOTAL INCOME:
Other income to total income reveals the proportionate share of other income in total
income. Other income includes non interest income and operating income. Total income
includes interest income, non interest income and operating income.

TABLE 1.4:-OTHER INCOME TO TOTAL INCOME IN SBI AND ICICI

(IN PERCENT)
YEAR SBI ICICI

2010-11 16.10 22.38

2011-12 16 20.70

2012-13 17 22.09

2013-14 16 21.48

2014-15 11 19.07

MEAN 15.22 21.44

CGR -31.6 -14.7

Source: Annual Reports of SBI and ICICI Bank from 2010-11 to 2014-15
 FIG.NO.1.4 OTHER INCOME TO TOTAL INCOME IN SBI AND ICICI

The table 1.4 shows that the ratio of other income to total income was decreased from
16.10 per cent in 2010-11 to 11.00 per cent in 2014-15 in case of SBI. However, the
share of other income in total income of ICICI was also decreased from 22.38 per cent
in 2010-11 to 19.07 per cent 2014-15. The table shows that the ratio of other income to
total income was relatively higher in ICICI (21.44%) as compared to SBI (15.22%)
during the period of study.
NET PROFIT MARGIN:-

Net Profit Margin reveals the financial results of the business activity and efficiency of
management in operations. The table 5.8 shows the net profit margin in SBI and ICICI
during the Period 2010-11 to 2014-15.

TABLE-1.5:-NET PROFIT MARGIN IN SBI AND ICICI

(IN PERCENT)
YEAR SBI ICICI

2010-11 12.64 11.81

2011-12 13.11 11.45

2012-13 10.54 13.64

2013-14 8.55 17.52

2014-15 9.73 17.45

MEAN 10.91 14.37

CGR 23.02 47.7

Source: Annual Reports of SBI and ICICI from 2010-11 to 2014-15

 FIG. NO.1.5 NET PROFIT MARGIN IN SBI AND ICICI

The table 1.5 reveals that the ratio of net profits to total income of ICICI was varied
from 11.81 per cent to 17.45 percent whereas in case of SBI it is not stable. It increased
to 13.11 percent from 12.64 percent in 2011-12 then further decreased to 10.54 percent
in 2012-13 and 8.55 percent in 2013-14 and finally increased to 9.73 percent in 2014-15
during the period of 5 years of study. However, the net profit margin was higher in
ICICI (14.37%) as compared to SBI (10.91%) during the period of study. But it was
continuously decreased from 2010-11 to 2014-15 in ICICI. Thus, the ICICI has shown
comparatively lower operational efficiency than SBI.
NET WORTH RATIO:-
Net worth Ratio is used for measuring the overall efficiency of a firm. This ratio
establishes the relationship between net profit and the proprietor’s funds.

TABLE 1.6 NET WORTH RATIO

(IN PERCENT)
YEAR SBI ICICI
2010-11 13.70 8.94
2011-12 15.74 7.58
2012-13 13.91 7.79
2013-14 12.84 9.35
2014-15 14.36 10.70
MEAN 14.11 8.87
CGR 4.87 19.68
Source: Annual Reports of SBI and ICICI from 2010-11 to 2014-15

FIG.NO.1.6 NET WORTH RATIO

It is clear from the table 1.6 that the net worth ratio of SBI was increased from 13.70
per cent to 14.36 per cent during 2007-08 to 2011-12, and decreased in 2009-10 and
2010-2011. Whereas the ratio was increased from 8.94 per cent to 10.70 percent in
ICICI. The table showed that the net worth ratio was higher in SBI (14.11%) as
compared to ICICI (8.87%) during the period of study, which revealed that SBI has
utilized its resources more efficiently as compared to ICICI.

GROWTH OF PROFIT:-

Net profit Ratio is used for measuring the profitability of the firm. It is calculated by
dividing net profit by net sales multiplied by 100. It establishes the relationship between
the net profit and sales.
TABLE 1.7 GROWTH OF PROFIT IN SBI AND ICICI

(IN CRORES)
YEAR SBI ICICI

PROFIT % CHANGE PROFIT % CHANGE

2010-11 6729 NILL 4157.73 NILL

2011-12 9121 35.5 3758.13 -9.61

2012-13 9161 49 4024.98 7.10

2013-14 8265 -9.8 5151.38 27.9

2014-15 11707 42 6465.26 25.50

MEAN 8996.6 4711.49

CGR 73.97 55.49

Source: Annual Reports of SBI and ICICI from 2010-11 to 2014-15

FIG.NO.1.7 GROWTH OF PROFIT IN SBI AND ICICI

The table 1.8 highlights that the mean value of net profit was higher in SBI (Rs. 8996.6
crores) as compared to that in ICICI (Rs. 4711.9 crores) during the period of study.
Further the growth rate of Net Profits was also higher in SBI (73.97%) than that in
ICICI (55.49%) during the study period. The table also shows that the annual growth
rate of profit in SBI was highest in the year 2012-13 and was negative (-9.8%) in the
year 2013-14. In ICICI, the annual growth rate of profit was highest in the year 2013-
14(27.9%) and was negative in the year 2011-12 (-9.61%).
TOTAL INCOME:-
The total income indicates the rupee value of the income earned during a period. The
higher value of total income represents the efficiency and good performance.

TABLE 1.8 GROWTH IN TOTAL INCOME OF SBI AND ICICI

(IN CRORES)
YEAR SBI ICICI

INCOME %CHNAGE INCOME %CHANGE

2010-11 58348.74 NILL 39667.19 NILL

2011-12 76479.78 31 39210.31 -1.15

2012-13 85962.07 12.3 32999.36 -15.8

2013-14 96329.45 12.06 33082.96 0.25

2014-15 120872.90 25.4 41450.75 25.2

MEAN 87598.58 37282.114

CGR 107.15 4.49

Source: Annual Reports of SBI and ICICI from 2010-11 to 2014-15.

 FIG.NO.1.8 GROWTH IN TOTAL INCOME OF SBI AND ICICI

The table 1.9 highlights that the mean value of total income was higher in SBI (Rs.
87,598.58 Crores) as compared to that in ICICI (Rs. 37282.114 crores) during the
period of study. However the rate of growth regarding total income was higher in SBI
(107.15 %) than in ICICI (4.49 %) during the period of study
TOTAL EXPENDITURE:-
The total expenditure reveals the proportionate share of total expenditure spent on the
development of staff, interest expended and other overheads.
TABLE 1.9 TOTAL EXPENDITURE OF SBI AND ICICI
(IN CRORES)
YEAR SBI ICICI

EXPENDITURE %CHNAGE EXPENDITURE %CHANGE

2010- 51619.622 NILL 35509.47 NILL
11
2011- 67358.55 30.4 35452.17 0.16
12
2012- 76796.02 14.01 28974.37 -18.2
13
2013- 88959.12 15.83 27931.58 -3.59
14
2014- 109186.99 22.73 34985.50 25.25
15
MEAN 78784.06 32570.61

CGR 111.52 -1.47

Source: Annual Reports of SBI and ICICI from 2010-11 to 2014-15.

FIG.NO.1.9 TOTAL EXPENDITURE OF SBI AND ICICI
The table 1.10 discloses that the mean value of total expenditure was higher in SBI (Rs.
78,784.06 crores) as compared to that in ICICI (Rs. 32570.61 crore) during the period
of study. But the rate of growth regarding expenditure in ICICI was (-1.47 %) than that
in SBI (111.52%) during the same period. It is clear that ICICI is successful in
decreasing their total expenditure as compared to SBI. The table also highlights that the
annual growth rate of expenditure in SBI was highest (30.04) in the year 2011-12 and
was lowest (14.01) in the year 2012-13. In ICICI, the annual growth rate of expenditure
was negative in the year 2012-13 and 2013-14 i.e. (-18.20) and (-3.59) respectively.
Hence it is clear that ICICI is more efficient as compared to SBI in terms of managing
expenditure.

ADVANCES:-
Advances are the credit facility granted by the bank. In other words it is the amount
borrowed by a person from the Bank. It is also known as “Credit‟ granted where the
money is disbursed and recovery of which is made later on.
TABLE 1.10- TOTAL ADVANCES OF SBI AND ICICI
(IN CRORES)
YEAR SBI ICICI
 ADVANCES %CHNAGE ADVANCES %CHANGE
2010-11 416768.20 NILL 225616.08 NILL

2011-12 542503.20 30.16 218310.85 -3.25

2012-13 631914.15 16.48 181205.60 -16.6

2013-14 756719.45 19.75 216365.90 19.40

2014-15 867578.89 14.6 253727.66 17.26

MEAN 646578.89 224645

CGR 108.16 12.45

Source: Annual Reports of SBI and ICICI from 2010-11 to 2014-15.

 FIG.NO.1.10- TOTAL ADVANCES OF SBI AND ICICI

Table 1.9 presents the mean of Advances of SBI was higher (646,578.89) as compared
to mean of Advances of ICICI (224,645). Rate of growth was also higher in SBI
(108.16 %) than in ICICI (12.45%). Table also shows the per cent Change in Advances
over the period of 5 years. In case of SBI Advances were continuously increased (with a
decreasing trend) over the period of study. However Advances in ICICI were decreased
till 2009-10 but these were increased in the subsequent years.
DEPOSITS:-
Deposit is the amount accepted by bank from the savers in the form of current deposits,
savings deposits and fixed deposits and interest is paid to them.

TABLE 1.11-TOTAL DEPOSITS OF SBI AND ICICI

(IN CRORES)
YEAR SBI ICICI

DEPOSIT %CHNAGE DEPOSIT %CHANGE

2010-11 537403.94 NILL 244431.05 NILL
2011-12 742073.13 38.08 218347.82 -10.6

2012-13 804116.23 8.36 202016.60 -7.40

2013-14 933932.81 16.14 225602.11 11.6

2014-15 104647.36 11.7 255499.96 13.2

MEAN 812234 229179

CGR 94.20 4.52

Source: Annual Reports of SBI and ICICI from 2010-11 to 2014-15

 Fig. NO.1.11 TOTAL DEPOSITS OF SBI AND ICICI

Table 1.11 presents the mean of Deposits of SBI was higher (812,234) as compared to
mean of deposits of ICICI (229,179%). However the rate of growth was higher in SBI
(94.20%) than that in ICICI (4.52%) during the period of study. Table also shows the
per cent Change in Deposits over the period of 5 years. In case of SBI Deposits were
continuously fluctuating over the period of study. However deposits in ICICI were
decreased in 2011-12 and 2012-13 but these were increased in the year 2013-14 and
2015-15 with 11.6% and 13.2% respectively.
FINDINGS AND CONCLUSIONS:-

The study found that the mean of Credit Deposit Ratio in ICICI was higher (89.302 %)
than in SBI (76.184%). This shows that ICICI Bank has created more loan assets from
its deposits as compared to SBI. The share of interest expenses in total expenses higher
in ICICI (63.36 %) as compare to SBI (59.99 %) and the proportion of interest income
to total income was higher in case of SBI(84.49%) as compared to ICICI (78.84%),
which shows that people prefer ICICI to invest their savings and SBI to take loans &
advances. The ratio of other income to total income was relatively higher in ICICI
(21.44 %) as compared to SBI (15.22 %). The Net Profit Margin of ICICI is higher
(14.37 %) whereas in SBI it was (10.99 %), which shows that ICICI has shown
comparatively better operational efficiency than SBI. The growth rate of net profit is
73.97% in SBI which is higher than ICICI which is 55.49%. This shows that SBI
performed well as compared to ICICI. The mean value of total income was higher in
SBI (87,598.58) as compared to that in ICICI (37,282.114). Net worth ratio was also
higher in SBI (14.11 %) than ICICI (8.87 %), which revealed that SBI has utilized its
resources more efficiently as compared to ICICI. The mean value of total expenditure
was higher in SBI (Rs. 78,784.06 crores) as compared to that in ICICI (Rs.32,570.61)
and the combined growth rate of expenditure was negative (-1.47%) in the case of
ICICI whereas in SBI it is 111.52%. Deposits in SBI were continuously increased.
However deposits in ICICI were decreased (with a declining trend) till 2012-13 but
these were increased in the subsequent years. In case of SBI Advances were
continuously increased (with a decreasing trend) with the combined growth rate of
(108.16 %), However Advances in ICICI were decreased (with a declining trend) till
2012-13 but these were increased thereafter with combined growth rate of (12.45 %). It
shows that ICICI has suffered with funds or avoid providing advances through 2010-11
to 2012-13. Hence, on the basis of the above study or analysis banking customer has
more trust on the public sector banks as compared to private sector banks.
 ANALYSIS AND INTERPRETATION

1. Where do you have your account?

BANK No of Respondents Percentage

SBI 20 67
ICICI 10 33

It shows the maximum numbers of people have their bank account in SBI and less
number of people has their bank account in ICICI Bank.
2.Which of the following type banking account do you have?

ACCOUNT TYPE(SBI) NO OF RESPONDENTS %

CURRENT 10 50
SAVINGS 5 25
JOINT 3 15
LOAN 2 10

ACCOUNT TYPE(ICICI) NO OF RESPONDENTS %

CURRENT 4 40
SAVINGS 2 20
JOINT 3 30
LOAN 1 10

ICICI
CURRENT SAVINGS JOINT LOAN
10%

40%
30%

20%

By seeing the graph, we can find that maximum number of people have current account
in SBI I.e. 50%. Savings account 25%, Joint account 15 %, and loan account 10%.
Whereas in ICICI 40% people have current account, 20 % have saving account, 30%
have joint account and 10 % people have loan account.
Q3. Does your bank create any recreation facility for the customers?

Response(SBI) No. of customer %

YES 17 85
NO 3 15

Response(ICICI) No. of customer %

Yes 7 70
no 3 30

SBI CUSTOMERS ICICI CUSTOMERS

YES NO YES NO

15%
30%

85% 70%

Not much difference is shown regarding recreational facilities to the customer between
two banks. However SBI has the leading role so far.
39
Q4. Do you think that your bank caters all your banking needs?

RESPONSE(SBI) NO OF CUSTOMERS %
YES 17 85
NO 3 15
RESPONSE(ICICI) NO OF CUSTOMERS %
YES 8 80
NO 2 20

SBI PERCENTAGE ICICI PERCENTAGE

YES NO YES NO

15% 20%

85% 80%

Not much difference is shown regarding bank caters all your banking needs to the
customer. However SBI has the leading role so far.

Q5. Which bank would you chose regarding transaction?

Bank No.of Respondent Percentage

SBI 23 76
ICICI 7 24
There is much difference is shown regarding transaction between two banks therefore
SBI has far better than ICICI Bank.

Q6. Which bank has ease of access (both branch and ATM)?

Bank No.of Respondent Percentage

SBI 17 85
ICICI 3 15
The graph shows that out of two banks SBI Bank provides more ease of access
regarding Branch and ATM.

7. Are you satisfied with the service provided by the bank?

Response (SBI) No.of Respondent Percentage

Very Satisfied 1 5
Satisfied 17 85
Somewhat 1 5
Satisfied
Not Satisfied 1 5

Response (ICICI) No.of Respondent Percentage

Very Satisfied - -
Satisfied 5 50
Somewhat 4 40
Satisfied
Not Satisfied 1 10

sbi
very satisfied satisfied somewhat satisfied not satisfied

5% 5% 5%

85%
 icici
very satisfied satisfied somewhatsatisfied not satisfied

0%

10%

50%

40%

By seeing this graph we can find that SBI Customers are more satisfied than the ICICI
bank customers.

8. Do they charge unnecessarily for not maintaining minimum balance in your account?
Response(SBI) No. Of Customers Percentage %
Yes 3 15
No 17 85

Response(ICICI) No. Of Customers Percentage %

Yes 8 80
No 2 20

sbi icici
yes
yes no

15% 20%

85% 80%

By seeing this graph we can find that the ICICI Bank charge unnecessarily for not
maintaining minimum balance in your account than SBI Bank.
 QUESTIONARRIE (Survey on customer’s satisfaction)

Q1. Where do you have your account?

a. SBI b. ICICI

Q2. Which of the following type banking account do you have?

a. Current account b. Savings account
b. Joint account d. Loan account
Q3. Does your bank create any recreation facility for the customers?
a. Yes b. No
Q4. Do you think that your bank caters all your banking needs?
a. Yes b. No
Q5. Which bank would you chose regarding transaction?
a. SBI b. ICICI
Q6. Which bank has ease of access (both branch and ATM)?
a. SBI b. ICICI
Q7. Are you satisfied with the service provided by the bank?
a. Very satisfied b. Satisfied
b. Somewhat satisfied d. Not satisfied
Q8. Do they charge unnecessarily for not maintaining minimum balance in your
account?
a. Yes b. No
 REFERENCES:-
 Maheshwari & Maheshwari, Banking Law and Practices, Himalaya Publishing
Pvt Ltd, Allahabad, pp.152.
 Pandey, I.M. Financial Management, Vikas Publishing. House Pvt. Ltd. 2002, pp.
633.
 Study material, Financial Management Unit 17, IGNOU, New Delhi. pp.6
 Trend and progress of banking, RBI, pp.22-23
 Gaylord A Freeman, “ The Problem of Adequate bank Capital”, quoted by
Howard D. Crosse in his book on Management Policies for Commercial Banks,
pp. 158.
 Development Research Group Study, No. 22, Department of Economic Analysis
and Policy, Reserve Bank of India, Mumbai September 20, 2000.
 Financial year report of SBI 2007-08 to 2011-12.
 SBI bulletin publication 2012.
 Financial year report of ICICI Bank 2007-08 to 2011-12.
 ICICI Bank bulletin publication 2012
 RBI statistical table relating to banks 2011-12.

Information Memorandum
 SBI and ICICI Bank annual report 2007-12.