lOMoARcPSD|18610953

RESEARCH PROJECT REPORT

ON

“COMPARATIVE ANALYSIS OF
CONSUMER SATISFACTION OF SBI AND
ICICI BANK”
SUBMITTED TO

IN PARTIAL FULFILLMENT OF THE REQUIREMENT

FOR THE AWARD OF THE DEGREE OF

“BACHELOR OF COMMERCE
(HONORS)”
Batch 2020-23

Session 2022-23

Submitted by: Supervised by:

Mr. Hardik Pandey Ms. Chavi Singh

Asst. Professor -Dept. of
Student of B.COM(H)

V Semester Mgmt. GLA University,

Roll No.204500023
 Mathura

CERTIFICATE

This is to certify that the summer training project report entitled

“COMPARATIVE ANALYSIS OF CONSUMER
SATISFACTION OF SBI & ICICI BANK” is submitted by Mr.
Hardik Pandey student of B.com(H) V Semester of “Institute of
Business Management”, GLA University, Mathura, under my
supervision for the partial fulfillment for the award of the degree of
Bachelor of Commerce (Honors), Session 2022-23, Batch 2020-23

Place: Mathura
Date:

Name & Signature of Supervisor

 DECLARATION

I Hardik Pandey student of B. Com (H) (V Semester) Session

2022- 2023, Batch 2020-2023 hereby declare that my work entitled
COMPARATIVE ANALYSIS OF CONSUMER
SATISFACTION OF SBI & ICICI BANK is the outcome of
genuine efforts done by me under the able guidance of Ms. Chavi
Singh and being submitted to “Institute of Business Management”,
GLA University, Mathura as summer training project report in
partial fulfillment for the award of the degree of Bachelor of
Commerce (Honors) {B. Com [H]}

Place: Mathura

Date:

Name: Hardik Pandey

Course: B. Com (H)

(V Semester)

University Roll No:

204500023
 lOMoARcPSD|18610953

ACKNOWLEDGEMENT
Firstly, I would like to express my sincere gratitude to Prof. Anurag Singh – Director - IBM without whose
blessings my summer training project work would not be completed.

I also want to thank our HOD - Prof. Somesh Dhamija for providing me encouragement, motivation, and moral
support throughout the project work.

In addition to this I would also like to thank Ms. Chavi Singh, Assistant Professor IBM who supervised my project.
Under his unrelated support and guidance, my project has taken this shape.

I am equally indebted to my family and friends who always inspired and motivated me to do something better
throughout this project.

At last I would like to extend my sincere thanks to all the respondents to whom I visited for giving their support and
valuable information, which helps me in completing my project work.

Hardik Pandey
Course – B. Com (H) V SEM.
University Roll No.204500023
 lOMoARcPSD|18610953

TABELS OF CONTENTS
S.NO. CONTENTS Page no.
1. Introduction

- Indian banking system

-Growth of banking
7-27
-Structure of Indian banking sector

-Introduction of SBI

-Introduction of ICICI bank.

2. Introduction of Topic

-Product & services offered by SBI

-Risk Management

-Credit Risk

-Market risk

-Operational risk

- Product & services offered by ICICI BANK

28-44
- 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 46-47
4. Objective Research 47
5. Research Methodology 48-49
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Types Of Research

-Sample Area

-Sample Size
48-49
-Sources of data collection

-Sampling Technique

6. Data Analysis & interpretation 50-65

7. Findings 67
8. Limitations of the study 68
9. Conclusion 69
10. Bibliography 70
11. Annexure-1 71-72
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CHAP
TER -
1
ABOU
T
THE
COM
PANY
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INTRODUCTION

A bank is an institution that deals in money and its substitutes and provides other financial

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
several 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.
 lOMoARcPSD|18610953

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.
 lOMoARcPSD|18610953

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: Nationalization 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 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
days 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.

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,
 lOMoARcPSD|18610953

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 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 Banking Institutions 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: Nationalisation of seven banks with deposits over 200 crores.
After the nationalisation 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.

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 Narasimhan, 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 swifter. 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
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THE STRUCTURE OF INDIAN BANKING SECTOR

The Indian banking industry has Reserve Bank of India as its Regulatory Authority. This is a

Mix of the Public sector, Private sector, Co-operative banks and foreign banks. The private

sector banks are again split into old banks and new banks.
 lOMoARcPSD|18610953

FACT FILES OF BANKS IN INDIA

The first, the oldest, the largest, the biggest, get all such types of information’s about Banking in India in this section.

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

Punjab
The first bank in Northern India to get ISO 9002 certification
and Sind
for their selected branches
Bank

Punjab
The first Indian bank to have been started solely with Indian capital National
Bank
South
The first among the private sector banks in Kerala to become
Indian
a scheduled bank in 1946 under the RBI Act
Bank
India's oldest, largest and most successful commercial bank,
offering the widest possible range of domestic, international and NRI State Bank
of India
products and services, through its vast network in India and overseas

The
India's second largest private sector bank and is now the Federal
largest scheduled commercial bank in India Bank
Limited
Imperial
Bank which started as private shareholders banks,
Bank of
mostly Europeans shareholders.
India

The first Indian bank to open a branch outside India in Bank of

India,
London in 1946 and the first to open a branch in founded in
continental Europe at Paris in 1974. 1906 in
Mumbai
The oldest Public Sector Bank in India having branches all over India
Allahaba
and serving the customers for the last 132 years d Bank
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Central
The first Indian commercial bank which was wholly
Bank of
owned and managed by Indians
India

Bank of India was founded in 1906 in Mumbai. It

became 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.
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INTRODUCTION OF SBI (STATE BANK OF 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 8500 ATMs.

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.
 lOMoARcPSD|18610953

STATE BANK OF INDIA

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 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) 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
 lOMoARcPSD|18610953

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
its operations and 3), changing the attitude of its employees (through an ambitious program aptly
named 'Parivartan' which means change) as a large number of employees are very rude to
customers.

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 these 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 its early predecessors 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 form 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 subsidiaries.
1980s When Bank of Cochin in Kerala faced a financial crisis, the government merged
it with State Bank of India.
 lOMoARcPSD|18610953

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.

MISSION, VISION, AND VALUES

MISSION STATEMENT:

To retain the Bank’s position as premiere Indian Financial Service Group, with world class
standards and significant global committed to excellence in customer, shareholder and employee
satisfaction and to play a leading role in expanding and diversifying financial service sectors
while containing emphasis on its development banking rule.

VISION STATEMENT:

◆ Premier Indian Financial Service Group with prospective world-class Standards of

efficiency and professionalism and institutional values.
◆ Retain its position in the country as pioneers in Development banking.
◆ Maximize the shareholders value through high-sustained earnings per Share.
◆ An institution with cultural mutual care and commitment,
satisfying and good work environment and continues learning
opportunities.

VALUES:

◆ Excellence in customer service

◆ Profit orientation
◆ Belonging commitment to Bank
◆ Fairness in all dealings and relations
◆ Risk taking and innovative
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INTRODUCTION OF ICICI:

ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian

financial institution, and was its wholly owned subsidiary. ICICI's
shareholding in ICICI
Bank was reduced to 46% through a public offering of shares in India in fiscal 1998.
ICICI Bank is India's second-largest bank with total assets of Rs. 3,997.95
billion at March 31, 2008. The Bank has a network of about 1,308 branches
and3,950 ATMs in India and presence in 18 countries. ICICI Bank offers a
wide range of banking products
and financial services to corporate and retail customers through a variety of
delivery channels and through its specialized subsidiaries and affiliates in
the areas of investment banking, life and non- life insurance, venture capital
and asset management.
The Bank currently has subsidiaries in the United Kingdom, Russia and
Canada, branches in Unites States, Singapore, Bahrain, Hong Kong, Sri
Lanka, Qatar and Dubai International Finance Centre and representative
offices in United Arab Emirates, China,
South Africa, Bangladesh, Thailand, Malaysia and Indonesia. Our UK
subsidiary has established branches in Belgium and Germany.
ICICI Bank's equity shares are listed in India on Bombay Stock Exchange
and the National Stock Exchange of India Limited and its American
Depositary Receipts (ADRs) are listed on the New York Stock Exchange
(NYSE).
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ICICI BANK

ICICI Bank is a leading Indian private sector commercial bank offering a variety of
products and services. It was incorporated in India in 1994. In 2002, ICICI, a non-bank
financial institution, and two of its subsidiaries, ICICI Personal Financial Services and
ICICI Capital Services, were amalgamated with ICICI Bank. As of March 31, 2007
ICICI Bank is the largest private sector bank in India and the second largest bank in
India, in terms of assets. May 10, 2007, ICICI Bank has the largest market capitalization
among all banks in India.
ICICI Banks commercial banking operations span the corporate and the retail sector. It
offers a suite of products and services for both its corporate and retail customers. ICICI
Bank offers a range of retail credit and deposit products and services to retail
customers. The implementation of its retail strategy and the growth in the commercial
banking operations for retail customers has had a significant impact on its business and
operations in recent years. At year-end fiscal 2007, retail finance represented 63.8% of
its total loans and advances compared to 62.9% at year-end fiscal 2006 and 60.9% at
year-end fiscal 2005. ICICI Bank has approximately 24.0 million retail customer
accounts. Its corporate customers include India’s leading companies as well as growth
oriented small and middle market businesses, and the products and services offered to
them include loan and deposit products and fee and commission-based products and
services. Through its treasury operations, it manages its balance sheet and strives to
optimize profits from the trading portfolio by taking advantage of market opportunities.
ICICI Bank believes that the international markets present a major growth opportunity
and have, therefore, expanded to countries other than India to serve its customers’ cross
border needs and offer its commercial banking products to international customers.
At year-end fiscal 2007 its principal network consisted of 710 branches, 45 extension
counters and 3,271 automated teller machines, or ATMs, across several Indian states.
Pursuant to the amalgamation of Sangli Bank with ICICI Bank, its network of branches
and extension counters increased by 198. ICICI Bank offers its customers a choice of
delivery channels, and they use technology to differentiate there products and services
from those of its competitors. ICICI Bank remains focused on changes in customer
needs and technological advances to remain at the forefront of electronic banking in
India, and seek to deliver high quality and effective services.
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HISTORY OF ICICI

ICICI was formed in 1955 at the initiative of the World Bank, the Government of India and
Indian industry representatives. The principal objective was to create a development financial
institution for providing medium-term and long-term project financing to Indian businesses.

Untill the late 1980s, ICICI primarily focused its activities on project finance, providing long-

term funds to a variety of industrial projects. With the liberalization of the financial sector in

India in the 1990s, ICICI transformed its business from a development financial institution

offering only project finance to a diversified financial services provider that, along with its
subsidiaries and other group companies, offered a wide variety of products and services. As India’s

economy became more market-oriented and integrated with the world economy, ICICI capitalized

on the new opportunities to provide a wider range of financial products and services to a broader spectrum of
clients.

ICICI Bank was incorporated in 1994 as a part of the ICICI group. ICICI Bank’s initial equity
capital was contributed 75.0% by ICICI and 25.0% by SCICI Limited, a diversified finance and
shipping finance lender of which ICICI owned 19.9% at December 1996. Pursuant to the merger
of SCICI into ICICI, ICICI Bank became a wholly-owned subsidiary of ICICI. Effective March
10, 2001, ICICI Bank acquired Bank of Madura, an old private sector bank, in an all-stock
merger.
Conversion into a bank offered ICICI the ability to accept low-cost demand deposits and offer a
wider range of products and services, and greater opportunities for earning non-fund based
income in the form of banking fees and commissions. ICICI Bank also considered various
strategic alternatives in the context of the emerging competitive scenario in the Indian banking
industry. ICICI Bank identified a large capital base and size and scale of operations as key
success factors in the Indian banking industry. In view of the benefits of transformation into a
bank and RBI’s pronouncements on universal banking, ICICI and ICICI Bank decided to merge.

At the time of the merger, both ICICI Bank and ICICI were publicly listed in India and on the
New York Stock Exchange. The amalgamation was approved by each of the boards of directors
of ICICI, ICICI Personal Financial Services, ICICI Capital Services and ICICI Bank at their
respective board meetings held on October 25, 2001. The amalgamation was approved by ICICI
Bank’s and ICICI’s shareholders at their extraordinary general meetings held on January 25,
2002 and January 30, 2002, respectively. The amalgamation was sanctioned by the High Court
of
 lOMoARcPSD|18610953

Gujarat at Ahmedabad on March 7, 2002 and by the High Court of Judicature at Bombay on
April 11, 2002. The amalgamation was approved by RBI on April 26, 2002. The amalgamation
became effective on May 3, 2002. The date of the amalgamation for accounting purposes under
Indian GAAP was March 30, 2002.
2003 ICICI opened subsidiaries in Canada and the United Kingdom (UK), and in the UK it
established an alliance with Lloyds TSB. It also opened an Offshore Banking Unit (OBU) in
Singapore and representative offices in Dubai and Shanghai.

2004 ICICI opens a rep office in Bangladesh to tap the extensive trade between that country,
India and South Africa.

2005 ICICI acquired Investitsionno-Kreditny Bank (IKB), a Russia bank with about US$4mn in
assets, head office in Balabanovo in the Kaluga region, and with a branch in Moscow. ICICI
renamed the bank

ICICI Bank Eurasia. Also, ICICI established a branch in Dubai International Financial Centre
and in Hong Kong.

2006 ICICI Bank UK opened a branch in Antwerp, in Belgium. ICICI opened representative
offices in Bangkok, Jakarta, and Kuala Lumpur.

2007 ICICI amalgamated Sangli Bank, which was headquartered in Sangli, in Maharashtra
State, and which had 158 branches in Maharashtra and another 31 in Karnataka State. Sangli
Bank had been founded in 1916 and was particularly strong in rural areas.

ICICI also received permission from the government of Qatar to open a branch in Doha. ICICI
Bank Eurasia opened a second branch, this time in St. Petersburg.

2008 The US Federal Reserve permitted ICICI to convert its representative office in New
York into a branch. ICICI also established a branch in Frankfurt.

2009: ICICI made huge changes in its organization like elimination of loss making
department and retrenching outsourced staff or renegotiate their charges in consequent to the
recession. In addition to this, ICICI adopted a massive approach aims for cost control and cost
cutting. In consequent of it, compensation to staff was not increased and no bonus declared
for 2008-09.
 lOMoARcPSD|18610953

VISION
To be the leading provider of financial services in India and a major global bank.

To be the preferred brand for total financial and banking solutions for both
corporates and individuals

To be the dominant Life, Health and Pensions player built on trust by world-
class people and service.

This we hope to achieve by:

 Understanding the needs of customers and offering them superior products and
service
 Leveraging technology to service customers quickly, efficiently and conveniently
 Developing and implementing superior risk management and
investment strategies to offer sustainable and stable returns to our
policyholders
 Providing an enabling environment to foster growth and learning for our employees
 And above all, building transparency in all our dealings

The success of the company will be founded in its unflinching commitment to

5 core values -- Integrity, Customer First, Boundary less, Ownership and Passion.
Each of the values describes what the company stands for, the qualities of our
people and the way we work.
We do believe that we are on the threshold of an exciting new opportunity, where
we can play a significant role in redefining and reshaping the sector. Given the
quality of our parentage and the commitment of our team, there are no limits to
our growth.
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MISSION

We will leverage our people, technology, speed and financial capital to:

 Be the banker of first choice for our customers by delivering high quality,
world-class products, and services.
 Expand the frontiers of our business globally.
 Play a proactive role in the full realization of India’s potential.
 Maintain a healthy financial profile and diversify our earnings across
businesses and geographies.
 Maintain high standards of governance and ethics.
 Contribute positively to the various countries and markets in which we operate.
 create value for our stakeholders
 Provide the social facilities to the society

In order to build some brand equity by doing social service, ICICI Bank has
decided to undertake a MISSION for reducing low birth weight incidence at the village
level.

REGISTERED OFFICE

ICICI Bank Limited

 Registered Office: Landmark, Race Course Circle, Vadodara 390 007.
 Corporate Office: ICICI Bank Towers, Bandra Kurla Complex, Mumbai 400 051.

SUBSIDIARIES
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ICICI SECURITIES

ICICI Securities, Ltd. operates as an investment banking company in India. It offers

corporate finance services, including advisory services related to joint ventures,
mergers, acquisitions, divestitures, spin-offs, and leveraged buyouts; equity capital
markets services, such as initial public offerings, rights offerings, convertible offerings,
and private placement and international offerings for unlisted and listed entities; private
equity/venture capital services; and infrastructure advisory services. The company also
provides services related to fixed income and money markets, which include designing
instruments, pricing, structuring, documentation, and placing the issue with institutional
investors; debt trading, including corporate bond trading and derivatives trading; and
debt research services. In addition, ICICI Securities provides research, sale, and trading
services related to equities markets. Further, the company deals in securities markets
transactions in the United States, as well as provides research and investment advice to

the U.S. investors. Additionally, it offers corporate advisory services in the United
Kingdom and Singapore.

Today ICICI Securities Ltd is the largest equity house in the country providing end-to-
end solutions (including web-based services) through the largest non-banking
distribution channel so as to fulfill all the diverse needs of retail and corporate
customers. ICICI Securities (I-Sec) has a dominant position in its core segments of its
operations - Corporate Finance including Equity Capital Markets Advisory Services,
Institutional Equities, Retail and Financial Product Distribution.
With a full-service portfolio, a roster of blue-chip clients and performance second to
none, we have a formidable reputation within the industry. Today ICICI Securities is
among the leading Financial Institutions both on the institutional as well as retail
side.
Headquartered in Mumbai, I-Sec operates out of several locations in India.
ICICI Securities Inc., the step-down wholly owned US subsidiary of the company is a
member of the National Association of Securities Dealers, Inc. (NASD). As a result of
this membership, ICICI Securities Inc. can engage in permitted activities in the U.S.
securities markets. These activities include Dealing in Securities and Corporate
Advisory Services in the United States and providing research and investment advice to
US investors.
ICICI Securities Inc. is also registered with the Financial Services Authority, UK
(FSA).
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ICICI PRUDENTIAL LIFE INSURANCE

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank
- one of India's foremost financial services companies-and Prudential plc - a
leading international financial services group headquartered in the United
Kingdom. Total capital infusion stands at Rs. 47.80 billion, with ICICI Bank
holding a stake of 74% and Prudential plc holding 26%.
We began our operations in December 2000 after receiving approval from
Insurance Regulatory Development Authority (IRDA). Today, our nation-wide
team comprises of 2099 branches (inclusive of 1,116 micro-offices), over
276,000 advisors; and 18 Bancassurance partners.

ICICI Prudential is the first life insurer in India to receive a National Insurer
Financial Strength rating of AAA (Ind) from Fitch ratings. For three years in a
row, ICICI Prudential has been voted as India's Most Trusted Private Life Insurer,
by The Economic Times - AC Nielsen ORG Marg survey of 'Most Trusted
Brands'. As we grow our distribution, product range and customer base, we
continue to tirelessly uphold our commitment to deliver world-class financial
solutions to customers all over India.

ICICI VENTURE

ICICI Venture is one of the largest and most successful private equity firms in
India with funds under management in excess of USD 2 billion.
ICICI Venture, over the years has built an enviable portfolio of companies
across sectors including pharmaceuticals, Information Technology, media,
manufacturing, logistics, textiles, real estate etc thereby building sustainable
value.
It has several “firsts” to its credit in the Indian Private Equity industry. Amongst
them are India’s first leveraged buyout (Info media), the first real estate
investment (Cyber Gateway), the first mezzanine financing for a acquisition (Arch
Pharmalabs) and the first ‘royalty-based’ structured deal in Pharma Research &
Development (Dr Reddy’s).
ICICI Venture is a subsidiary of ICICI Bank, the largest private sector financial
services group in India.
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ICICI LOMBARD
ICICI Lombard is a leading insurance company that is a joint undertaking between two major
organizations - ICICI Bank Limited and Fairfax Financial Holdings Limited, a Canada based
company. They have a share amount of 74:26. ICICI Lombard has received approvals from
various pioneer organizations of finance world.
This ISO 9001: 2000 certified company is the first general insurance company in India. ICICI
Lombard General Insurance Company Limited offers the best insurance coverage and provides
extensive customer care services. With its registered office at Mumbai, ICICI Lombard is spread
all over the country. This insurance company has its office at 65 different locations of India.

ICICI Lombard is the leading private general insurance company in India. It is known for its simple and quick
documentation. Its claim to fame is its extremely fast mode of settlement. Online policies are offered almost
instantly. The product line of ICICI Lombard General Insurance Company Limited is extensive and covers

almost all the fields.

The security system of the data transfer is made tight by 128-bit encryption. It is the first
company to have online interface for providing digitally signed documents.
This Insurance Company has been honored with numerous prestigious awards. It received the
following awards:
• Economic Times Avaya Global Connect Customer Responsiveness Award 2006
• Best Housing Insurance in the Smart Living Awards by 360 degrees, a Times of
India Group subsidiary, in Nov 2006
• Gold Shield for "Excellence in Financial Reporting" by the ICAI (Institute of
Chartered Accountants of India), 2006
• General Insurance Company of the Year at the 10th Asia Insurance Industry Awards

ICICI Lombard offers a range of products and services, which include:

• Health Insurance
• Home Insurance
• Motor Insurance
• Overseas Travel insurance
• Student Medical Insurance
• Domestic Travel Insurance
• Fire Insurance
• Marine Insurance
• Industrial Insurance
• Corporate Insurance
• Liability Insurance
• Credit Insurance
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 lOMoARcPSD|18610953

CHAPTER -2
INTRODUCTION TO THE
TOPIC
 lOMoARcPSD|18610953

STATE BANK OF INDIA (SBI)

PRODUCT & SERVICES OFFERED BY SBI: -

· Terms deposit scheme
· Recurring deposits scheme
· Loans
· SBI SARAL Personal loan
· Education loan
· Car loan
· Home loan
· Medi-Plus loan

TERM DEPOSITS
· Provide security, trust and competitive rate of interest.
· Flexibility in period of term deposit from 15 days to 10 years
· Affordable Low Minimum Deposit Amount:
. One can open a term deposit with SBI for a nominal amount of Rs.1000/- only.
· Flexibility in choosing the amount one wish to invest and the maturity period.

BENIFITS O F SCHEME: -
Safety: – SBI IS continues to deliver on its promise of safety and security over 200 years.

Liquidity Loan /overdraft facility: One can avail a loan/overdraft against his deposit.
SBI provides loan / overdraft up to 90% of deposit amount at nominal cost. So one can
continue to earn interest in his deposit and still can meet his urgent financial requirements.

Premature Withdrawal: Interest to be charged on premature withdrawal of term deposits

at 1.00% below the rate applicable for the period deposit has remained with the Bank.

Transferability-Transfer of Term Deposits between wide networks of branches

without any charge.
Compounding / Flexible / Timely Payment of Interest
- Under Special Term Deposit Scheme, interest accrues in account and
gets compounded quarterly.
 lOMoARcPSD|18610953

· Term Deposits are available at all SBI Branches

· Easy and convenient access of information at SBI internet banking.
Tax Implications:
· Tax Deductible at Source, as per Income Tax Act

Flexibility to convert Special Term Deposit to Term Deposit and vice versa

· One can convert his special Term Deposit to a Term Deposit to

receive monthly/quarterly interest payments to match his financial
requirements.
One can also convert his Term Deposit to a Special Term Deposit, which provides compounded
rate of interest to multiply his money faster.

RECURRING DEPOSIT: -
Recurring deposit refers to a little investment by an investor to meet his financial goals of future
(Children’s education or marriage, buy a car etc.) Recurring deposit provides the element of
compulsion to save at high rates of interest, wide choice in period of deposit.

Features: -
· Flexibility in period of deposit with maturity ranging from 12 months to 120 months.
· Low minimum monthly deposit amount.
· One can start a Recurring Deposit with SBI for a monthly installment of Rs.100/- only.

Benefits: -
Including all the benefits of terms deposits there are some more benefits of recurring benefits: -
 Nomination Facility is available in this scheme
 One can save a monthly installment of multiple of 10 every month
 One can monitor his deposit through SBI Internet Banking or through a
passbook issued to you.
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LOAN
TYPE AMOUNT RATE OF SECURITY ELIGIBILITY
INTEREST

MIN.

MAX.
SBI SARAL 10,000- 17.75 Nil A person having a good
Personal loan 10,00,000 profession and income
Education 4,00,000 12.25% Nil Graduation courses
loan
400,000- 13.75% Tangible
7,50,000 collateral Post-graduation Professional
Security courses

4,00,000- 12.25% suitable Other courses approved by

third UGC/Government/AICTE
7,50,000 party guarantee etc.
Car loan – 15,00,000 As per bank's person having a income
Extant below 1,00,000
instructions.
Used
Vehicle

Up to 3 years 15,00,000 16.25%

Above 3 years 16.50%

15,00,000

New vehicle

Up to 3 years 1
2 7,50,000 12.75%
Above 3yrs 7,50,000
3-5years 15,00,000 12.50%
5-7years
15,00,000 12.75%
15,00,000 13.00%
Home loan Availability of Equitable mortgage of the
sufficient, property or Other tangible
 lOMoARcPSD|18610953

Up to 5 years 5 30,00,000 10.50- 11.75% regular and security of adequate value

continuous like NSCs, Life Insurance
to15 years Up 30,00,000- 10.75- 11.50% source of policies etc., if the property
75,00,000 income for cannot be
to 15 yrs 30,00,000 – 11.75- 12% servicing the mortgaged
75,00,000. loan repayment.

Age18-60
years

Medi-Plus 50,000- 14.50% As per bank's Govt emp. From 10 years

loan 200,000. Extant self-employed professional
instructions. employee/agent
(income>3lakhs)

SERVICES

 Domestic treasury
 -SBI Vishwa yatra foreign travel card
 -Broking services
 -Revised service Charges
 -ATM Services
 -Internet Banking
 -E-Pay
 -E-Rail
 -RBIFT
 -Safe Deposit Locker
 -Gift Cheques
 -Micro Codes
 -Foreign Inward Remittance
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ATM SERVICE

STATE BANK NETWORKED ATM SERVICES

State Bank offers you the convenience of over 8000 ATMs in India, the largest
network in the country and continuing to expand fast! This means that you can transact
free of cost at the ATMs of State Bank Group (This includes the ATMs of State Bank of
India as well as the Associate Banks – namely, State Bank of Bikaner & Jaipur, State
Bank of Hyderabad, State Bank of Indore, State Bank of Mysore, State Bank of Patiala,
State Bank of Saurashtra, and State Bank of Travancore) and wholly owned subsidiary
viz. SBI Commercial and International Bank Ltd., using the State Bank ATM-cum-
Debit (Cash Plus) card.
E-PAY
Bill Payment at Online SBI (e-Pay) will let you to pay your Telephone, Mobile,
Electricity, Insurance and Credit Card bills electronically over our Online SBI
website
E-RAIL
Book your Railways Ticket Online.

The facility has been launched w.e.f 1st September 2003 in association with
IRCTC. The scheme facilitates Booking of Railways Ticket Online.

SAFE DEPOSIT LOCKER

For the safety of your valuables, we offer our customers safe deposit vault or locker
facilities at many our branches. There is a nominal annual charge, which depends on the
size of the locker and the center in which the branch is located.

RISK MANAGEMENT
An independent Risk Governance structure in line with the international best practices has been
put in place in the Bank. In view of the growing volume and complexity in business, risk
management has assumed critical importance. Accordingly, the Bank has elevated the
risk function to Board level by appointing the Managing Director as Chief Risk Officer
to ensure this crucial function gets the importance it deserves.
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The Bank has Board approved policies and procedures in place to measure, manage, mitigate
various risks such as Credit, Market, Operational, Liquidity, and Interest Rate Risks across all its
portfolios.

The Risk Management Committee of the Board oversees the policy and strategy for risk
management. In addition, various Risk Committees, namely the Credit Risk Management, Asset
Liability, Market Risk Management and Operational Risk Management Committees are in place
to monitor risks in their respective areas on an ongoing basis.

CREDIT RISK MANAGEMENT

Credit Risk Management processes encompasses identification, assessment,
measurement, monitoring and control of the credit exposures.
The Bank has multiple Credit Risk Assessment models in place covering
Manufacturing, Trade, Non-Banking Financial Corporations, Banks, and Primary
Dealers. The Credit Risk Models developed for Manufacturing and Trading sectors
have been refined to conform to the requirements under Advanced Internal Based
Approach of Basel II. The other models are also being reviewed.
The Bank conducts Industry studies to assess the Risk prevalent in each industry and
gives guidelines to operating functionaries in lending to these industries. Industry wise
exposure limits are fixed and monitored regularly.
The Bank manages its portfolio of loan assets with a view to limiting concentrations in
terms of risk quality, geography, industry, maturity and large exposure.

MAKET RISK MANAGEMENT:

Market risk is the risk that the value of the 'on' & 'off' balance sheet positions of the
Bank will be adversely affected by movements in market variables viz: interest rates,
exchange rates, and
equity and commodity prices.
Market Risk Management is governed by Board approved Policies for Investment and
Trading in Bonds, Equities and Foreign Exchange. The identification, measurement,
monitoring and reporting of Market Risk is done by the Market Risk Management
Department which is a part of the independent Risk Governance Structure of the Bank.
 lOMoARcPSD|18610953

Exposure, stop loss and Duration limits have been prescribed. These limits
along with other management action triggers are tracked daily and necessary
action initiated as required to control and manage Market Risk.
In addition, Value at Risk (VaR) is generated daily for the purpose of close
monitoring. Back testing of VaR numbers is also carried out to validate these
measurements. The portfolio is also subjected to Stress testing under various
scenarios so that a proper understanding of the potential losses under extreme
price movements is always kept in view.

OPERATIONAL RISK MANAGEMENT

Operational risk is the risk of losses resulting from inadequate or failed internal
processes, people, and systems or from external events. Operational risk includes legal
and regulatory risk but excludes strategic and reputation risks.
The Bank manages Operational risks by putting in place and maintaining a
comprehensive system of internal controls and policies. The Operational Risk
Management Policy of the Bank establishes a consistent framework for systematic and
proactive identification, assessment, measurement, monitoring, and mitigation of
operational risk. The policy applies to all business and functional areas within the
Bank, and is supplemented by operational systems, procedures and guidelines which
are periodically updated.
All key processes, risks and controls are documented and periodic assessments of risks
and controls are carried out. The Bank has initiated steps for creation of a loss database
with a view to graduate to Advanced Measurement Approaches under the Basel II
Guidelines.
The objective of the Bank's Operational Risk Management is to continuously review
systems and control mechanisms, create awareness of operational risk throughout the
Bank, assign risk ownership, alignment of risk management activities with business
strategy, and ensuring compliance with regulatory requirements.
 lOMoARcPSD|18610953

ICICI BANK
PRODUCTS & SERVICES OF ICICI BANK

ICICI Bank offers a wide range of banking products and financial services to dynamic.) ICICI
Bank is also the largest issuer of credit cards in India. corporate and retail customers through a
variety of delivery channels and specialised subsidiaries and affiliates in the areas of investment
banking, life and non-life insurance, venture capital and asset management.

PRODUCTS OF ICICI BANK

TYPES OF ACCOUNTS
SAVING ACCOUNT

A Savings Account for everyone with a host of convenient features and banking channels to
transact through. So now you can bank at your convenience, without the stress of waiting in
queues. We service savings accounts with 8 to 8 banking and ‘out of branch’ banking

1. LIFE PLUS SENIOR CITIZEN SAVING ACCOUNT

We understand that a Savings Account needs to do more after you reach the age of seniority; we
understand your concerns for safety and security. We have an ideal Savings Bank Service for
those who are 60 years and above. The Senior Citizen Services from ICICI Bank has several
advantages that are tailored to bring more convenience and enjoyment in your life.

2. YOUNG STAR SAVING ACCOUNT

It's really important to help children learn the value of finances and money management at an
early age. Banking is a serious business, but we make banking a pleasure and at the same time
fun. Children learn how to manage their personal finances.
3. RECURRING DEPOSIT ACCOUNT
When expenses are high, you may not have adequate funds to make big investments. An ICICI
Bank Recurring Deposit lets you invest small amounts of money every month that ends up
with a large saving on maturity. So you enjoy twin advantages- affordability and higher earning.

4. FIXED DEPOSIT ACCOUNT

Safety, Flexibility, Liquidity and
Returns!!!! A combination of unbeatable features of the Fixed
Deposit from ICICI Bank.
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CARDS

1. CREDIT CARD
Credit Cards give you a smart way to shop, and offer you flexibility and
convenience in managing your finances. ICICI Bank credit cards provide a host
of exciting offers and benefits such as low interest rates, rewards programs, and a
high credit and cash limit. We offer different types of credit card to suit the
different needs and requirements for added features.
2. TRAVEL CARD
Presenting ICICI Bank Travel Card. The Hassle Free way to Travel the world.
Traveling with US Dollar, Euro, Pound Sterling or Swiss Francs; Looking for
security and convenience; take ICICI Bank Travel Card. Issued in duplicate.
Offers the Pin based security. Has the convenience of usage of Credit or Debit
card.
3. DEBIT CARD
The ICICI Bank Debit Card is a revolutionary form of cash that allows customers
to access their bank account around the clock, around the world. The ICICI Bank
Debit Card can be used for shopping at more than 3.5 Lakh merchants in India
and 24 million merchants worldwide.
4. COMMERCIAL CARD
ICICI Bank Commercial Cards have been designed as payment solutions for
large & mid-sized organizations. A widely accepted concept internationally,
Commercial Cards help to better streamline payment processes & thus increase
efficiencies.
5. MERCHANT SERVICE
Give your customer quick and convenient ways to make payments. With ICICI
bank's two payment acceptance solution, enjoy business like never before. POS
Machine at your retail establishment will assist you to accept cards. Payseal,
online payment gateway will make e- commerce more convenient, easy and
secure on internet... your business can only get even bigger and better.
 lOMoARcPSD|18610953

LIFE INSURANCE

1. INVESTMENT & SAVING PLANS

Endowment policies are a good way of putting aside your savings today for a future goal
- whether it's to buy a house in India or fund your entrepreneurial vision. Our savings-
oriented policies are designed to make your savings grow and have them available to
you at the end of a fixed number of years or through the term of the plan.
Lifetime II- A complete market-linked insurance plan that adapts itself to your
changing protection and investment needs, throughout a lifetime.
Invest shield Gold- A unit-linked insurance plan with an assurance of Capital
Guarantee*, which offers you the benefit of a limited premium payment and coverage
term.
Premier Life - A market linked insurance plans that meet your Investment and Protection needs.

2. RETIREMENT PLANS
Many of us picture ourselves enjoying the fruits of our labour after retirement -
going on a dream vacation, or helping our child's career take wing. Financing all this
will depend on our personal savings and investments, so it’s important to save for the
future from today. Our retirement plans are designed to help you systematically save, so
that you can enjoy all the things you have dreamed of when you retire.
LifeTime Pension II- A regular premium linked deferred pension plan that gives you
the freedom to choose the amount of premium, and invest in market-linked funds, to
generate potentially higher returns.

3. CHILD PLANS
As a responsible parent, you want to ensure a hassle-free, successful life for your child.
However, life is full of uncertainties and even the best-laid plans can go wrong. Smart
Kid Education Plans are designed to provide flexibility and to safeguard your child's
future education and lifestyle; taking all possibilities into account. SmartKid Child Plans
has a bouquet of three products which can help you secure your child's education.

- Unit-linked Regular Premium

- Unit-linked Single Premium

- Regular Premium Smart Kid

 lOMoARcPSD|18610953

DEMAT SERVICE
Features of Demat service:
E-Instructions: You can transfer securities 24 hours a day, 7 days a week
through Internet & Interactive Voice Response (IVR) at a lower cost. Now with "Speak to
transfer", you can also transfer or pledge instructions through our customer care officer.

Consolidation Demat Account: Dematerialize your physical shares in various

holding patterns and consolidate all such scattered holdings into your primary
demat account at reduced cost.

Digitally Signed Statement: Receive your account statement and bill by

email.

Corporate Benefit Tracking: Track your dividend, interest, bonus through

your account statement.

Mobile Request: Access your demat account by sending SMS to enquire

about Holdings, Transactions, Bill & ISIN details.

Mobile Alerts: Receive SMS alerts for all debits/credits as well as for any request
which cannot be processed.

• Dedicated customer care executives specially trained at our call

centre, to handle all your queries.
• Countrywide network of over 300 branches, you are never far from an ICICI
Bank
Demat Services outlet.
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LOANS

1. HOME LOANS
The No. 1 Home Loans Provider in the country, ICICI Bank Home Loans offers some
unbeatable benefits to its customers - Doorstep Service, Simplified Documentation and
Guidance throughout the Process. It's really easy!

2. PERSONAL LOAN
If you're looking for a personal loan that's easy to get, your search ends here. ICICI
Bank Personal Loans are easy to get and absolutely hassle free. With minimum
documentation you can now secure a loan for an amount upto Rs. 15 lakhs.

3. CAR LOAN
The most preferred financier for car loans in the country. Network of more than 1000
channel partners in over 200 locations. Tie-ups with all leading automobile
manufacturers to ensure the best deals.

4. COMMERCIAL VEHICAL LOAN

Range of services on existing loans & extended products like funding of new vehicles,
refinance on used vehicles, balance transfer on high-cost loans, top up on existing loans,
extend product, working capital loans & other banking products.

5. FARM EQUIPMENT LOAN

Preferred financier for almost all leading tractor manufacturers in the country. Flexible
repayment options in tandem with the farmer's seasonal liquidity. Monthly, Quarterly
and Half- yearly repayment patterns to choose from. Comfortable repayment tenures
from 1 year to 9 years.

6. BUSINESS INSTALMENT LOAN

Business Installment Loan (BIL) helps the entities take a giant stride by fulfilling their
business requirements, be it working capital requirement, business expansion or to grab
that once in a lifetime business opportunity.
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TYPE AMOUNT RATE OF SECURITY ELIGIBILITY

INTEREST
MIN.

MAX.

Personal loan 15,00,000

Education 4,00,000 For all 10-12% Nil Graduation Courses

Loan
400,000- Tangible Post-graduation
7,50,000 Collateral professional courses
security
Other courses approved by
Suitable Third- UGC/Government/AICTE etc.
4,00,000- party guarantee
7,50,000

Car loan 15,00,000 11-13% As per the Person having the income
extent below 100,000.
instructions

Home loan 75,00,000 11.5-12.5% Availability of Equitable mortgage of property

sufficient, regular, or other tangible security of
and continuous adequate value like NSC, life
source of income insurance policy etc. the
for servicing the property cannot be mortgage.
loan
repayment.
 lOMoARcPSD|18610953

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 practices. A comprehensive range of quantitative
and modeling tools developed by a 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
Corporate Centre, is completely independent of all business operations and accountable
to the Risk and Audit Committees of the Board of Directors. RCAG is organized into six
subgroups: Credit Risk Management Group, Market Risk Group, Credit Policies Group,
Internet Audit Group, Retail Risk Group and Risk Analytics Group.

CREDIT RISK MANAGEMENT

Credit risk is the risk that a borrower is unable to meet its financial obligations to the lender.
ICICI Bank measures, monitors, and managers credit risk for each borrower and at the portfolio
level. ICICI Bank has a standardized 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 internalized 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 institutionalized across ICICI Bank through
the availability of sector-specific information on 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.
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MARKET RISK MANAGEMENT

Market risk is the risk of loss resulting from changes in interest rates, foreign
currency exchange rates, equity prices and commodity prices. HDFC Bank’s exposure to
market risk a function of its trading and asset and liability management activities and its
role as a financial intermediary in customer-related transactions. The objective of market
risk management is to minimize the impact of losses due to market risks on earning and
equity capital.
Market risk policies include Asset-Liability Management (ALM) policies and policies
for the trading portfolio. The Asset-Liability Management Committee (ALCO) of Board
of Directors approves ALM policies. Alco’s role encompasses stipulating liquidity and
interest-rate risk limits, monitoring risk levels by adherence to set limits, articulating the
organization’s interest rate view and determining business strategy in the light of the
current and expected business environment. These sets of policies and processes are
articulated in ALM policy. A separate set of policies for the trading portfolio address
issues related to investments in various trading products and are approved by the
Committee of Directors (COD) of the Board. RCAG exercises independent control over
the process of market-risk management and recommends changes in processes and
methodologies for measuring market risk.

OPERATIONAL RISK MANAGEMENT

Operational risk can result from a variety of factors, including failure to obtain proper
internal authorization, improperly documented transactions, failure of operational and
information security procedures, computer systems and software or equipment, fraud,
inadequate training and employee errors. We attempt operational risk by maintaining a
comprehensive system of internal controls, establishing systems and procedures to
monitors transactions, maintaining key back-up procedures and undertaking regular
contingency planning. The Middle Office Group monitors adherence to credit
procedures. The International Audit Group undertakes a comprehensive audit of all
business group and other functions, in accordance with a risk-based audit plan. This plan
allocates audit resources based on an assessment of the operational risks in the various
businesses. ICICI Bank has been a pioneer in the implementation of a risk-based audit
methodology in the Indian banking sector. The International Audit Group conceptualizes
and implements improved system of internal controls to minimize operational risk.
 lOMoARcPSD|18610953

ADVANTAGES OF ICICI OVER SBI:

ICICI is growing at a very fast rate with a total asset of Rs. 3,744.10 billion.
In the area of human relations, the two are taking divergent paths. SBI, which had
over 1 lacks employee, has reduced headcount through a voluntary retirement
scheme and is cautious about adding headcount.
ICICI Bank, on the other hand, is setting up regional hubs where its workforce
would be concentrated and plans to add 20,000 to its headcount every year. The
group plans to add between 75,000 and 1, 00,000 employees in the next few years
ICICI Bank is also set to outdo SBI is in its international book
- An area where it has been very aggressive.

ADVANTAGES OF SBI OVER ICICI:

-SBI is the largest and oldest bank of India. Its major stocks are held by
government of India. So this bank enjoys the trust of its Customers a lot.
-SBI offers flexible tenures of loan repayment.
-State bank of India has vast experience in the field of SME (Small and
Medium Enterprises) Financing.
-As it is the oldest name so it enjoys public trust a lot.
-SBI have four national level Apex Training Colleges and 54 Learning Centers
spread all over the country the Bank is Continuously engaged in skill
enhancement of its employees.
-Some of the training programs are attended by bankers from banks in other countries.
-SBI group, which has over 10,000 branches, is planning to add another 3,000 branches.
-It is also set to become the largest issuer of debit cards and is the second
largest credit card issuer.
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CHAPTER -3
RESEARCH
METHODOLOGY
 lOMoARcPSD|18610953

REVIEW OF LITERATURE:

The banking sector in India has made remarkable progress since the economic
reforms in 1991. New private sector banks have brought the necessary competition into
the industry and spearheaded the changes towards higher utilization of technology,
improved customer service and innovative products. Customers are now becoming
increasingly conscious of their rights and are demanding more than ever before. The
recent trends show that most banks are shifting from a” product-centric model” to a
“customer-centric model” as customer satisfaction has become one of the major
determinants of business growth. In this context, prioritization of preferences and close
monitoring of customer satisfaction have become essential for banks. Keeping these in
mind, an attempt has been made in this study to analyze the factors that are essential in
influencing the investment decision of the customers of the public sector banks. For this
purpose, Factor Analysis, which is the most appropriate multivariate technique, has been
used to identify the groups of determinants. Factor analysis identifies common
dimensions of factors from the observed variables that link together the seemingly
unrelated variables and provides insight into the underlying structure of the data.
Secondly, this study also suggests some measures to formulate marketing strategies to
lure customers towards banks.

IA BANK TIES UP WITH SBI FOR MONEY TRANSFERS

NEW JERSEY: Indus American Bank has tied up with State Bank of India to offer money
transfer services to India for its clients. Under the new money transfer service, which will
provide expanded services to Indus American Bank customers can expect service at over 14,000
branch locations of State Bank of India within India, and at over 14,000 additional RTGS
participating banks.

Funds remitted from Indus American Bank would reach recipients typically within 24 hours. As
the largest bank in India, State Bank of India offers excellent exchange rates which are now
available to Indus American Bank customers. India is one of the biggest destinations for
foreign remittances.
 lOMoARcPSD|18610953

ICICI BANK ALLOTS EQUITY SHARES

ICICI Bank allotted 17,800 equity shares of face value of Rs 10 each on Sep. 18,
2007 under the employees stock option scheme, 2000 (ESOS).ICICI Bank
(ICICIBANK) was promoted in 1994 by ICICI, an Indian development financial
institution. The two entities subsequently merged to become the largest
commercial bank in the private sector.

Shares of the company gained Rs 7.75, or 1.38%, to settle at Rs 569.9. The

total volume of shares traded was 173,655 at the BSE.

OBJECTIVE OF RESEARCH

Each research study has its own specific purpose. It is like to discover to Question
through the application of scientific procedure. But the main aim of our research
to find out the truth that is hidden and which has not been discovered as yet. Our
research study following objectives: -

1) To study the customer preference between SBI & ICICI bank

based on customer satisfaction, lending schemes.

2) To know customer awareness regarding the products and services of SBI and ICICI
bank.
3) Customer Satisfaction regarding services of the bank
 lOMoARcPSD|18610953

RESEARCH METHODOLOGY

TYPES OF RESEARCH

My research is based on Descriptive, Qualitative and Quantitative research.

Descriptive Research: -
Descriptive research includes surveys and fact finding enquires of different kinds.
The major purpose of descriptive research is description of the situation as it
exists at present. Researcher has no control over the variables of this type of
research.
Qualitative Research: -
In our research we need comparison as well the similarities between different
banks. So this based on all qualitative data. In short, Qualitative research is
especially important in the behavioral sciences where the aim is to discover the
underline motives of human behavior. Through such research we can analyses
various factors which motivate to people to behave in a particular manner or
which make people like or dislike a particular thing.
Quantitative research: - Quantitative research is based on the measurement of
quantity or amount. It is applicable to phenomena that can be expressed in terms
of quantity. So we can use it in our research for collection of all the numerical
data.

SAMPLE AREA: Mathura

SAMPLE SIZE: “This refers to the number of items to be selected from the
universe to constitute a sample”
In our research sample size is 100 to know the customer satisfaction &
perception about the banks.
 lOMoARcPSD|18610953

SOURES OF DATA COLLECTION

While deciding about the method of data collection to be used for the study the
researcher should keep to types of data.

1. Primary
2. Secondary Data.
I used in my research primary data, as well as secondary data. Primary means
collected a fresh, and the first-time data will use Questionnaire and secondary
means which are already available like annual report, magazines, internet etc.

SAMPLING TECHNIQUE
It is a series of questions asked to individuals to obtain statistically useful
information about a given topic. Respondents give answer according to their will.
I used one questionnaire as a sampling technique. The questionnaire prepared for
the customers of the SBI & ICICI bank to know their satisfaction level.
 lOMoARcPSD|18610953

CHAPTER -4
DATA ANALYSIS &
INTERPRETATION
 lOMoARcPSD|18610953

DATA ANALYSIS & INTERPRETATION

Particulars Percent

25-35 years 79.6%

36-45 years 11.8%

46-55 years 7.5%

Above 55 years 1.1%

Total 100%

Interpretation: Above data shows that most of the customers

are between the age of 25-35 years.
 lOMoARcPSD|18610953

Particulars Percent

Male 45.8%

Female 54.2%

Total 100%

Interpretation: Above data shows that most of the customers

in the survey are female users of the banking services.
 lOMoARcPSD|18610953

Particulars Percent
Illiterate 1%
School 8.2%
UG 66%
PG 13.4%

Professional Course 7.2%

Others 4.1%
Total 100%

Interpretation: Above data shows that most of the customers

in the survey are under graduates followed by post graduates
and other fields.
 lOMoARcPSD|18610953

Particulars Percent
House Wife 6.2%
Students 61.9%
Salaried Person 18.6%
Businessmen 4.1%
Professionals 7.2%
Supervisors 1%
Managerial Class N. A
Pensioner 1%
Total 100%

Interpretation: Above data shows that most of the customers

in the survey are students followed by salaried class and others.
 lOMoARcPSD|18610953

Particulars Percent

Rs. 50,000 - Rs. 1,50,000 70.5%

Rs. 2,50,000 - Rs. 3,50,000 12.8%

Rs. 3,50,000 – Rs. 4,50,000 10.3%

Above Rs. 4,50,000 6.4%

Total 100%

Interpretation: Above data shows that the major part of the

survey is occupied by the people lying in the income level of
Rs. 50,000- Rs. 1,50,000.
 lOMoARcPSD|18610953

Particulars Percent

SBI 75%

ICICI 25%

Total 100%

Interpretation: Above data shows that most of the people in

the survey have their accounts in SBI bank.
 lOMoARcPSD|18610953

Particulars Percent
Efficient Customer Service 39.2%
More ATMs 17.5%
Time Savings 23.7%
Transaction Costs 7.2%

Technology 12.4%

Total 100%

Interpretation: Above data shows that most of the people in

the survey believe in the efficient services provided by the
banks.
 lOMoARcPSD|18610953

Particulars Percent

Savings A/C 85.4%

Fixed A/C 6.3%

Current A/C 8.3%

Other N. A

Total 100%

Interpretation: Above data shows that most of the people in

the survey have “savings A/c” with their respective bank.
 lOMoARcPSD|18610953

Particulars Percent

ATM Service 18.6%

Internet Banking 28.9%

Mobile Banking 43.3%

Core Banking 9.3%

Total 100%

Interpretation: Above data shows that most of the people in

the survey prefer to like mobile banking services as they are
very handy and compact.
 lOMoARcPSD|18610953

Particulars Percent

Yes 58.8%

Quite Satisfied 33%

No 8.2%

Total 100%

Interpretation: Above data shows that most of the people in

the survey are satisfied with the banking services provided by
their banks.
 lOMoARcPSD|18610953

Particulars Percent

Yes 85.4%

No 14.6%

Total 100%

Interpretation: Above data shows that most of the people in

the survey are aware of the products and services offered by the
banks.
 lOMoARcPSD|18610953

Particulars Percent
Highly Satisfactory 20.8%
Satisfied 44.8%
Average 26%
Dissatisfied 6.3%

Highly Dissatisfied 2.1%

Total 100%

Interpretation: Above data shows that most of the people in

the survey are satisfied by the banking services offered.
 lOMoARcPSD|18610953

Particulars Percent

Yes 72.2%

No 27.8%

Total 100%

Interpretation: Most of the people have not taken any kind of

loan from their bank.
 lOMoARcPSD|18610953

Particulars Percent
Less Paper Work 37.8%

Transparency 20.7%

Less Interest Rates 13.4%

Longer Tenure loan for ease of
8.5%
repayment
Flexibility to choose EMI base loan
11%
or an overdraft
Specially designed products for self-
8.5%
employed
Total 100%

Interpretation: Most of the people like the less ‘paper work’

& ‘transparency’ feature provided by the banks.
 lOMoARcPSD|18610953

Particulars Percent

Yes 83.5%

No 16.5%

Total 100%

Interpretation: Most of the people in the survey are satisfied

with the banking system today.
 lOMoARcPSD|18610953

CHAP
TER -
5
CONC
LUSI
ONS,
FINDI
NGS
&
LIMI
TATI lOMoARcPSD|18610953

FINDINGS
-Most of the respondents choose SBI because the bank is giving more loan and
advances facility to the customers.

-The age group of 25yrs – 35yrs respondents mostly having accounts in ICICI
bank whereas maximum old age respondents having account in SBI.

- According to my knowledge and perception maximum old age customers

found SBI more reliable bank as a public sector bank whereas mostly
youngsters have interest in ICICI bank.

-Customer awareness program is required so that more people should attract

towards loans & advances product.

-Maximum customers are satisfied with today’s banking scenario.

-Maximum customers like the most in banking services i.e., less paper work
whereas they also like the EMI base loan scheme.

-Even in case of loan & advances customers not only give preference to SBI
but they are also satisfied with it.

-In ICICI bank maximum customers having saving accounts where as in SBI
maximum customers have fixed account, reason among this that maximum
customer rely over SBI for their long-term money deposits.

-maximum customers are satisfied with the more no. of ATM facilities of
SBI whereas ICICI customers like its low transaction cost.

-36% of SBI customers well known about its loans & advances products
whereas, in ICICI bank 16% customers do not know about the loan & advances
product of it.
 lOMoARcPSD|18610953

LIMITATIONS OF THE STUDY

• Size Of the research may not be substantial.
• Information may be biased because of the preference of the customers.
• Complete data was not available due to company privacy and secrecy.
• The survey was carried through questionnaire and the questions were based on
perception.
• There was lack of time on the part of respondents.
• The banking sector is too vast & it is not possible to cover each & every customer.
• The study is limited to a particular branch of SBI and ICICI bank.
 lOMoARcPSD|18610953

CONCLUSION
We can conclude that the financial sector is a nerve system of Indian economy.
For steady growth in economy innovations and development in financial sector
is very important.

. The banks should focus on-

-Launch Innovative product

-Customized advance products

-Better customer services

-Fastest customer’s problem-solving techniques

-Customer retention

Since both the banks are competing equally with each other.

But SBI bank is little bit below the line in young customer handling when
compared to ICICI bank. The ICICI bank is little bit below the line in
concentrating on Loan & advances products & services then to SBI bank.

But SBI should be considering more reliable because of public sector bank &
because of its various schemes.
 lOMoARcPSD|18610953

BIBLIOGRAPHY

 www.rbi.com

 www.statebankofindia.com

 www.ICICIbank.com

 www.moneycontrol.com
 lOMoARcPSD|18610953

ANNEXURE- 1

QUESTIONNAIRE
1. Name:

2. Age: a) □ 25yrs- 35 yrs. b) □ 36 yrs. - 45yrs c) □ 46 – 55 yrs. d) □ above 55 yrs.

3. Gender: a) Male □ b) Female □

4. Educational Qualification:

a) Illiterate (b) School (c) UG (d) PG

e) Professional Course (f) Others

5. Occupation:

a) House wife (b) Students (c) Salaried person

d) Business man (e) Professionals (f) Supervisor

g) Managerial (h) pensioner

6. Income level:

a) Rs.50,000 – Rs.150,000 b) Rs.150,001-

Rs.250,000 c) Rs.250,001- Rs.350,000 d)

Rs.350,001-Rs.450,000

e) Above Rs. 450,000

7. In which bank do you have an account?

a) ICICI bank (b) SBI bank

8. why you choose the particular bank?

a) Efficient customer service b) more ATMs

c) Time saving d) transaction costs

e) Technology
 lOMoARcPSD|18610953

.
9. What type of account do you have in bank?
a) Saving b) Fixed c) Current

d) Others……….

10. Which type of service you prefer the most in your bank?

a) ATM service b) Internet banking

c) Mobile banking d) core banking

10. Are you satisfied with it?

a) Yes b) quite satisfy c) No

11. Are you aware about the product and services provided by these banks?

a) Yes b) No

12. What do you feel by services provided by SBI and ICICI bank in advance product?

a) Highly Satisfactory (b) satisfied c) average d) dissatisfied

e) Highly dissatisfied

13. Are you taking the loan from your bank?

a) Yes b) No

14. What Features do you like most in today’s banking scenario regarding the loans?

a) Less paper work b) Transparency

c) Less interest rates d) longer tenure loan for ease of repayment

e) Flexibility to choose EMI base loan or an over draft

f) Specially design products for self-employed.

15. Are you satisfied with today’s banking system?

a) Yes b) No