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    MBFS PPT 2

    Uploaded by

    Shreya Shrivastava
    The document compares competitive practices between HDFC Bank and SBI Bank. It analyzes their savings accounts, current accounts, credit cards, debit cards, and minor accounts. HDFC generally offers higher interest rates on savings accounts and charges lower interest rates on loans. While SBI has a larger branch network and customer base, HDFC earns a higher profit margin due to its interest rate strategies. Overall, the document provides a feature-by-feature comparison of major banking services between India's two largest private and public sector banks.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd

    MBFS PPT 2

    Uploaded by

    Shreya Shrivastava
    28 views12 pages
    The document compares competitive practices between HDFC Bank and SBI Bank. It analyzes their savings accounts, current accounts, credit cards, debit cards, and minor accounts. HDFC generally offers higher interest rates on savings accounts and charges lower interest rates on loans. While SBI has a larger branch network and customer base, HDFC earns a higher profit margin due to its interest rate strategies. Overall, the document provides a feature-by-feature comparison of major banking services between India's two largest private and public sector banks.

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    Management banking and financial security

    Original Title

    MBFS_PPT_2[1]

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    The document compares competitive practices between HDFC Bank and SBI Bank. It analyzes their savings accounts, current accounts, credit cards, debit cards, and minor accounts. HDFC generally offers higher interest rates on savings accounts and charges lower interest rates on loans. While SBI has a larger branch network and customer base, HDFC earns a higher profit margin due to its interest rate strategies. Overall, the document provides a feature-by-feature comparison of major banking services between India's two largest private and public sector banks.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    28 views12 pages

    MBFS PPT 2

    Uploaded by

    Shreya Shrivastava
    The document compares competitive practices between HDFC Bank and SBI Bank. It analyzes their savings accounts, current accounts, credit cards, debit cards, and minor accounts. HDFC generally offers higher interest rates on savings accounts and charges lower interest rates on loans. While SBI has a larger branch network and customer base, HDFC earns a higher profit margin due to its interest rate strategies. Overall, the document provides a feature-by-feature comparison of major banking services between India's two largest private and public sector banks.

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    © All Rights Reserved
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    You are on page 1of 12

    Competitive practices used by Banks

    Submitted By:
    Submitted To:
    Mayank Noniwal
    Dr. Nidhi Srivastava
    Rahul Tiwari
    Firstly, we need to understand what are competitive practices for any bank.

    1. Provide more interest on saving Account as compared to its competitor.


    2. Provide better services on current account as compared to competitor.
    3. Providing First-hand Knowledge of banking to Minors.
    4. Provide minimum interest on loans.
    5. Provide more good offers on credit cards.
    6. Availability of more ATMs for customer.
    7. Provide Core banking (Who can access his/her account from anywhere.) and many more.
    Market Share of Banks in India

    SBI holds 25% Market


    Share.
    HDFC holds 4% Market
    Share.
    COMPETITIVE PRACTICE OF HDFC AND SBI BANK

    FEATURES HDFC BANK SBI BANK

    Founded 1994 1806

    Type Private Sector Public Sector

    Headquarters Mumbai, India Mumbai, India

    Number of branches Over 5,500 Over 22,000

    ATM Network Over 16,000 Over 62,617

    Revenue INR 157,263 Crores (2022) INR 316,021 Crores (2022)

    Net Profit INR 36,961 Crores (2022) INR 31,675 Crores (2022)
    SAVING ACCOUNT COMPARISON OF HDFC AND SBI BANK

    FEATURE HDFC BANK SBI BANK


    Account Name HDFC Bank Savings Account SBI Bank Savings Account
    Minimum balance Depends on the type of Minimum Balance amount
    account Nil
    Interest Rate 3% p.a. 2.7% p.a. less than 10.cr &
    3% p.a. for more than 10.cr
    Debit card type Visa/Mastercard Basic Rupay ATM-Debit
    Card
    Free transaction Depend on the type of account Varies based on the account
    type and location
    Internet banking Available Available
    Additional information Personalized cheque book,
    Nomination facility, free
    free NEFT/RTGS
    passbook, e-statement,
    transactions, international
    loyalty program, overdraft
    debit card, wealth
    facility
    management services
    CURRENT ACCOUNT COMPARISON OF HDFC AND SBI BANK
    FEATURES HDFC BANK CURRENT SBI BANK CURRENT
    ACCOUNT ACCOUNT
    Minimum balance Depends on the type of Average Monthly Balance
    location and account Rs.5000 (Feb 2021)
    Interest rate No interest is paid on current No interest is paid on
    accounts current accounts
    ATM/Debit Card Available Free ATM during First Year
    Depends on the type of
    Cash Deposit Limit No limit on Cash deposit
    account and location
    Free NEFT/RTGS Free NEFT/RTGS
    Online Transactions
    transactions transactions
    Personalized cheque book, First 50 cheque will be
    international debit card, free, free monthly e-
    Additional Features dedicated relationship statement, doorstep
    manager, trade and forex banking services, trade and
    services forex services
    Overdraft Facility Available Available
    CREDIT CARD COMPARISON OF HDFC AND SBI BANK
    FEATURES HDFC BANK CREDIT SBI BANK CREDIT
    CARD CARD
    Varies based on the card Varies based on the card
    Annual Fee
    type type
    Interest Rate 1.99% - 3.50% per month 3.35% - 3.50% per month
    Air miles, hotel discounts, Air miles, hotel discounts,
    Travel Benefits travel insurance, lounge travel insurance, railway
    access benefits
    Dining discounts, movie Dining discounts, movie
    Entertainment Offers tickets, entertainment tickets, entertainment
    vouchers vouchers
    Insurance Coverage Available on select cards Available on select cards
    EMI facility, contactless Balance transfer, flexipay,
    Additional Features payment, easy bill easy money, online
    payment shopping
    DEBIT CARD COMPARISON OF HDFC AND SBI BANK

    FEATURES HDFC BANK DEBIT SBI BANK DEBIT


    CARD CARD
    Varies based on the card Varies based on the card
    Annual Fee
    type and account type and account
    Available at HDFC Bank
    Available at SBI Bank and
    Cash Withdrawal and non-HDFC Bank
    non-SBI Bank ATMs
    ATMs

    Insurance Coverage Available on select cards Available on select cards

    Free transactions for select Free transactions for select


    Online Transactions
    accounts accounts
    Photo debit card, rewards,
    Contactless payment, free
    Additional Features easy bill payment, free
    accidental death insurance
    insurance

    Rewards Available on select cards Available on select cards


    MINOR ACCOUNT COMPARISON OF HDFC AND SBI BANK

    FEATURES HDFC BANK MINOR SBI BANK MINOR


    ACCOUNT ACCOUNT
    Minimum Age 10 years and above 10 years and above
    Depends on the account
    Minimum Balance Not required
    type and location
    Varies based on the
    Interest Rate Same as saving account
    account type
    Free NEFT/RTGS Only provided with limit
    Online Transactions
    transactions of 2000
    Personalized cheque book, Nomination facility, free
    Additional Features dedicated relationship monthly e-statement,
    manager, rewards birthday gifts
    Available on select Parental control on
    Parental Control
    accounts complete account
    Mobile App for Parents Available Available
    Interest rate of FD of some
    banks recently updated in Mint
    newspaper on 12.3.2023

    If we compare here the interest


    rate of HDFC bank and SBI than
    we can easily understand that
    HDFC is paying little higher
    interest rate than SBI.
    Revenue INR 157,263 Crores (2022) INR 316,021 Crores (2022)

    Net Profit INR 36,961 Crores (2022) INR 31,675 Crores (2022)

    If we compare earning of Both banks :


    HDFC earn a profit of 23.5% on its revenue and SBI earn a profit of 10% on
    its sales.
    Profit of any bank simply calculated by Interest earn on lending – Interest paid
    to accounts.
    Currently SBI has more than 45cr Customers and HDFC has more than 7
    crore customers. But both banks have somehow same profit the only reason is
    HDFC charge higher interest rate on lending's.
    Thank You

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