A Comparative Study of Customer Services Provided by ICICI and SBI Banks in Bangalore

A Comparative study of customer services provided by ICICI and SBI bank in Bangalore

A Comparative study of “Customer services provided by ICICI and SBI banks in Bangalore ” Dissertation Submitted To BANGALORE UNIVERSITY In partial fulfillment of the requirements for the award of the Degree of MASTER OF BUSINESS ADMINISTRATION

Submitted by

RAKESH KUMAR REG. NO 091GCMA070

UNDER THE GUIDANCE OF

Ms Pavithra.S.T Faculty,RVIM

RASHTREEYA SIKSHANA SAMITHI TRUST

R V INSTITUTE OF MANAGEMENT #CA 17,36th Cross, 26th Main, 4th “T” Block, Jayanagar Bangalore-560041 Bangalore-560041

R V Institute of Management Page 1


DECLARATION

Comparative titled “A Comparative I, hereby hereby decla declare re that that this this dis disser sertat tation ion titled stud study y of cu cust stom omer er serv servic ices es pr prov ovid ided ed by ICIC ICICII and and SB SBII bank bankss in Bangalore” is su subm bmit itte ted d to Bang Bangal alor ore e Univ Univer ersi sity ty in part partia iall

fulfil fulfillme lment nt of the requirem requirement ent for the award award of the degre degree e of

Master of Business Administration is my original work done Ms. Pavit Pavithra hra S.T. S.T., Facul unde underr the the valu valuab able le guid guidan ance ce of Ms. Faculty, ty, RVIM. This This dis disser sertat tation ion has not been been submi submitte tted d earli earlier er to any other other University

or

Institution

for

the

award

of

any

degree,

diploma/certificate or published any time before.

Date:

RAKESH

KUMAR Place: Bangalore

091GCMA070


Reg No:


COLLEGE CERTIFICATE

This is to certify that Mr. RAKESH KUMAR bearing Registration Registration Number

091GCMA070

pro program gramme me has has

is

a

student

of

4 th

seme semest ster er MBA MBA

unde undert rtak aken en Diss Disser erta tati tion on on the the

topi topic c

“A

Comparative study of customer services provided by ICICI and SBI banks in Bangalore” under the guidance of Ms. Pavithra.S.T. ,

Faculty RVIM.

This dissertation is based on the original work and has not formed the basis for award of any degree/diploma/associat degree/diploma/associate e ship/prize by Bangalore University or any other University.

Dr. T. V. RAJU Professor & Director



RVIM

GUIDE CERTIFICATE

This is to certify that Mr. RAKESH KUMAR bearing the register number

091GCMA070

is

a

student

of

4 th

seme semest ster er MBA MBA

prog progra ramm mme e has has unde undert rtak aken en a Diss Disser erta tati tion on on the the topi topic c “A Comparative study of customer services provided by ICICI and SBI banks banks in Bangal Bangalore ore” unde underr my guid guidan ance ce.. This This repo report rt is bein being g

submitted in partial fulfillment of the requirements for the award of the degree of Master of Business Administration.

This dissertation is a original work and has not formed the basis for for

award ard

of

any

degree gree/d /diiplom ploma a/as /associ ociate ate

Bangalore University or any other University.


ship/p ip/prrize

by


Place: Ms.Pavithra.S.T

Project

Date:Bangalore Guide

ACKNOWLEDGEMENT

The

successful

completion

of

the “DISSERTATION

REPORT” has been been accom accompli plishe shed d with with the valuab valuable le guidan guidance ce and and su supp ppor ortt of nume numero rous us peop people le.. I owe owe to thei theirr cons constr truc ucti tive ve support, which sustained my motivation. I take this opportunity to express my profound sense of gratitude to all of them. I express my sincere gratitude to Dr. T.V. Raju, Professor & Director,

R.V Institute of Management for his

invaluable support during my MBA Course. I express my sincere thanks and heartfelt gratitude to Ms.

Pavithra S.T., Faculty, R V Institute of Management, Bangalore for for

her her

exce excell llen entt

throughout

this

and and

insp inspir irin ing g

project

work.

guid guidan ance ce and and Without

sugg su gges esti tion ons s

her

inspiring

encouragement, it would have not been possible for me to bring out this project.



I express my splendid thanks to all my lecturers, librarian for extending library facilities needed to complete this project. Last but not least, my sincere thanks to everybody who has helped me directly or indirectly for making this project report a grand success.

Date:

RAKESH KUMAR Place:

Bangalore

Reg. No: 091GCMA070

EXECUTIVE SUMMARY: 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 utilization of technology, 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 shifting from a “product-centri “product-centricc model” to a “customer-centri “customer-centricc 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 satisfaction have become essential essential for banks. Keeping these in mind, an attempt 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, R V Institute of Management Page 6


which is the most appropriate multivariate technique, has been used to identify the groups of determi determinant nants. s. Factor Factor analysi analysiss identif identifies ies common common dimensi dimensions ons of factors factors from the observed observed variable variabless that link link together together the seemingl seemingly y unrelat unrelated ed variable variabless and provides provides insight into the underlying underlying structure of the data. Secondly, this study also suggests some measures to formulate marketing strategies to lure customers towards banks. The study basically tries to identify identify the customers customers are satisfied satisfied with their services among ICICI bank and SBI bank and know about the Customer preferences among ICICI and SBI bank.



TABLE OF CONTENT Chapter No.

1

Contents INTRODUCTION • • •

2

• • • • • • •

3

4

• • • • •

20-27

Overview the Banking industry

PROFILE OF THE SYSTEM/ COMPANY/ORGANIZATION •

14-19

Statement of the problem Review of the literature Objectives of the study Scope of the study Research Methodology Method of collection of data Plan of analysis Limitation of the study

INDUSTRY PROFILE •

10-13

Introduction to Bank & Banking Introduction to Importance of the Bank Introduction to Reason to choose a Bank

RESEARCH DESIGN •

Page No.

28-79

Company profile of SBI Product & Services of SBI Award & Recognitions of SBI Company Profile of ICICI Product & Services of ICICI Award & Recognitions of ICIC

5

DATA ANALYSIS AND INTERPRETATION

80-111

6

FINDING CONCLUSION RECOMMENDATIONS BIBLIOGRAPHY

112-116

ANNEXURE

119-123


117-118


LIST OF TABLE TABLE NO.

PARTICULARS

PAGE NO.

1

Table showing Age group of Respondents of SBI customers .

81

2

Table showing the income level of Respondents.

83

3

Table showing type of account Respondents having.

85

4

Table showing respondents take loan from SBI

87

5

Table showing preference of services by the respondents

89

6

Table showing the services availed by the SBI customers through Internet banking.

91

7

Table showing reason to choose SBI bank services

93

8

Table showing Age group of Respondents of ICICI bank customers

95

9

Table sh showing the In Income le level of of Re Respondents of of IC ICICI bank

97

10

Table showing type of account Respondents having

99

11

Table showing Respondents take loan from ICICI bank

101

12

Table showing preference of services by Respondents

103

13

Table sh showing the services availed by the IC ICICI customers through Internet banking. Table showing reason to choose ICICI bank services.

105

14


107


LIST OF GRAPH GRAPH NO.

PARTICULARS

PAGE NO.

1

Graph showing number of respondents with their age groups

81

2

Graph showing the income level of Respondents

83

3

Graph showing type of account Respondents having

85

4

Graph showing respondents take loan from SBI

87

5

Graph showing preference of services by the respondents

89

6

Graph showing the services availed by the SBI customers through Internet banking.

91

7

Graph showing reason to choose SBI bank services

93

8

Graph showing Age group of Respondents of ICICI bank customers

95

9

Graph showing the Income level of Respondents of ICICI bank

97

10

Graph showing type of account Respondents having

99

11

Graph showing Respondents take loan from ICICI bank

101

12

Graph showing preference of services by Respondents.

103

13

Graph Table showing the services availed by the ICICI customers through Internet Banking.

105

14

Graph showing reason to choose ICICI bank services.

107



Chapter 1 INTRODUCTIO N



INTRODUCTION: A bank is a financial institution whose primary activity is to act as a payment agent for

customers and to borrow and lend money. It is an institution for receiving, keeping, and lending money. An organization organization,, usually a corporation corporation,, chartered by a state or federal or federal government, government, which does most or all of the following: receives demand deposits and time deposits, deposits, honors instruments drawn on them, and pays and pays interest on them; discounts notes notes,, makes loans loans,, and invests in securities securities;; collects checks checks,, drafts drafts,, and notes; certifies depositor's checks; and issues drafts and cashier's checks. checks.

Banking is business receiving for lending or investment, of deposits of money, from public repayable on demand or otherwise and which draw able by cheque, draw and order. In general terms, terms, Banking is the Process of business business activity of accepting and safeguarding money owned by other individuals and entities, entities, and then lending out this money in order to order to earn a profit. profit. Banks play very important role in the economic life of the nation. The health of the economy is closely related to the soundness of its banking its banking system. Although banks create no new wealth but their borrowing, lending and related activities facilitate the process of production, distribution, exchange and consumption of wealth. In this way they become very effective partners in the process of economic development. Today, modern banks are very very useful useful for the util utiliza izati tion on of the resou resourc rces es of the the countr country. y. The bank bankss are mobil mobilizi izing ng the savin savings gs of the peopl peoplee for the the inves investm tment ent purpo purposes ses.. Th Thee saving savingss are are encouraged and saving rate increases. increases. If there would be no banks then a great portion of a capital of the country would remain idle.

A bank as a matter of fact is just like a heart in the economic structure and the Capital provided by it is like blood in it. As long as blood is in circulation the organs will remain sound and healthy. If the blood is not supplied to any organ then that part would become useless. So if the finance is not provided to Agriculture Agriculture sector or industrial sector, it will



be destroyed. destroyed. Loan facility provided by banks by banks works as an incentive to the producer to increase the production. Bank provides necessary funds for executive program in the process of economic development. They collect savings of large masses of people scattered throughout the country, which is the absence of bank world have remained idle and unproductive. unproductive. These amounts are collected, pooled together and made available to commerce and industry for meting the requirement. This provides finance for successfully carrying on various stages of production as well as distribution.

Bank stimulate the habit of savings amount people by the security and interest they offer with these savings which are deposited by people are in position to utilize the deposited amount more productively. The bank increased the transaction transaction capacity of the customers by advancing loans when they require for additional funds to finance their expanded program program of transact transaction. ion. In short, short, the economi economicc developm development ent of a particu particular lar country country depends on the sound banking system.

Banking is also important to business because businesses deposit their extra money here. This way their money is not only safe but also earns interest for them. On the other hand, businesses can borrow money from banks when they need to invest invest in business. business. Apart from that Banks also act as guarantee giver in case of creditors and suppliers.

Product and Services offers by Bank:

Deposits: A bank accepts deposits from the public. People can deposit their cash balances

in either of the following accounts to their convenience:•

Fixed Deposit Account: Cash is deposited in this account for a fixed period. The

depositor gets receipts for the amount deposited. It is called Fixed Deposit Receipt. The receipt indicates the name of the depositor, amount of deposit, rate of interest and the period of deposit. This receipt is not transferable. If the depositor stands in need of the amount before the expiry of fixed period, he can withdraw the same after paying the discount to the bank.



Savings Account: This type of deposit suits to those who just want to keep their

•

small savings in a bank and might need to withdraw them occasionally. Banks provide a certain rate of interest on the minimum balance kept by the depositor during the month. •

Curre Current nt Accou Account nt:: Th This is type type of accou account nt is kept kept by the busin business essma man n who who are are required to withdraw money every new and then. Banks do not pay any interest on this account. Any sum or any number of withdrawals can be presented by such an account holder

Loans Facility: Loans are granted by the banks on securities which can be easily disposed

off in the market. When the bank has satisfied satisfied itself regarding the soundness of the party, a loan is advanced.

Credit cards: All banks (except the Swiss bank) provide VISA and MasterCard cards that

enable individuals to make payments over the Internet or in shops.

Mobile Banking: Mobile banking (also known as M-Banking, mbanking, SMS Banking

etc.) is a term used for performing balance checks, account transactions, payments etc. via a mobile device such as a mobile phone. phone. Mobile banking today (2007) is most often performed via SMS or the Mobile Internet but can also use special programs called clients downloaded to the mobile device. Internet Banking: Online banking (or Internet banking) allows customers to conduct

financial transactions on a secure website operated by their retail or virtual or virtual bank , credit union or building building society. society. Core Banking System: Core Banking is a general term used to describe the services

provided by a group of networked bank branches. Bank Customers may access their funds and other simple transactions from any of the member branch offices, etc.



Chapter 2 Research Design



2.1 Statement of the problem:In today’s competition the core objective of all organizations is to satisfy customers. It is the choice of empowered customer to decide the fate of any product or organization. Only those organizations that continuously monitor and meet changing customer needs will will win win by cutti cutting ng costs costs and and restru restruct cturi uring ng for quick quicker er respo response nse to the custom customer’ er’ss demands, all of which will add up to an unmatched competitive competitive edge enabling to conquer tomorrow’s market place. The mere objective of the study is to interpret the customer services provided by ICICI and SBI bank and to compare with each other. It will help in understanding the preferred customer changing attitude towards the customer services provided to them by ICICI and SBI bank. So the the study study will will give give idea idea about about how peopl peoplee are aware aware about about custom customer er servi services ces provided by these banks in Bangalore.

2.2 Objectives of the study:1. To understand and compare the services provided by ICICI bank. 2. To understand and compare the services provided by SBI bank. 3. To understand about the customers perception towards ICICI bank and SBI bank. 4. To study customers willingness to take market risk. 5. To know the brand and advertisement influence on customers about ICICI bank and SBI bank.

2.3 Review of The Literature:-

In May 1991 Stephen F. Borde had studied about the “Is the Savings and Loan” This article tells about the Saving and loan crisis. Proposed solutions are discussed in the context of the industry as it currently stands. With a somewhat similar liability structure



to that that of banks banks (mai (mainly nly short short-te -term rm deposi deposits) ts),, the the asset asset struct structure ure of S&Ls S&Ls is quite quite different. Whereas banks assets consist of short-term loans, S&L assets consist largely of long-ter long-term m loans, loans, such such as home home ownersh ownership ip mortga mortgages. ges. Therefore, Therefore, in the absence absence of adequate hedging measures, S&Ls are more vulnerable to interest rate risk, which can lead to lower profits when interest rates rise.

In June 29, 2001 Joshua Rosner had studied about the Housing Loan in the New Millennium: Millennium: A Home Without Equity is Just a Rental with Debt. They studied about the prospects of the U.S. housing/mortgage sector over the next several years. Based on our analysis, we believe there are elements in place for the housing sector to continue to exper experie ience nce growt growth h well well above above GDP. GDP. Howe However ver,, we belie believe ve there there are risk riskss that that can materially distort the growth prospects of the sector. Specifically, it appears that a large portion of the housing sector's growth in the 1990's came from the easing of the credit underwriting process. Such easing includes: The drastic reduction of minimum down payment levels from 20% to 0% A focused effort to target the "low income" borrower. Thee reduct Th reductio ion n in priva private te mort mortgag gagee insur insuranc ancee requir requirem ement entss on high high loan loan to value value mortgages. The increasing use of software to streamline the origination process and modify/recast delinquent loans in order to keep them classified as "current". Changes in the appraisal process which has led to widespread over appraisal/over-valuation problems If these trends remain in place, it is likely that the home purchase boom of the past decade decade will will conti continue nue unabat unabated. ed. Despi Despite te the the incre increasi asingl ngly y more more diffi difficul cultt econo economi micc environment, it may be possible for lenders to further ease credit standards and more fully exploit less penetrated penetrated markets. markets. Recently targeted populations that have historically been been denied denied homeowne homeownershi rship p opportun opportuniti ities es have offered offered the mortgag mortgagee industry industry novel novel hurdl hurdles es to overc overcom ome. e. Indust Industry ry parti partici cipan pants ts in combin combinati ation on with with eased eased regula regulato tory ry standa standards rds and and the suppor supportt of the GSEs GSEs (Gover (Governm nment ent Sponso Sponsore red d En Ente terpr rpris ises) es) have have overcome many of them. If there is an economic disruption that causes a marked rise in unemployment, the negative impact on the housing market could be quite large. These impa impact ctss come come in seve severa rall form forms. s. They hey incl includ udee a redu reduct ctio ion n in the the dema demand nd for for homeownership, homeownership, a decline in real estate prices and increased foreclosure expenses. These impacts would be exacerbated by the increasing debt burden of the U.S. consumer and the reduction of home equity available in the home. Although we have yet to see any materially negative consequences of the relaxation of credit standards, we believe the risk R V Institute of Management Page 17


of credit relaxation and leverage can't be ignored. Importantly, a relatively new method of loan forgiveness can temporarily alter the perception of credit health in the housing sector. In an effort to keep homeowners in the home and reduce foreclosure expenses, holders of mortgage assets are currently recasting or modifying troubled loans. Such policy initiatives may for a time distort the relevancy of delinquency and foreclosure statistics. However, a protracted housing slowdown could eventually cause modifications to become uneconomic and, thus, credit quality 31 statistics would likely become relevant once again. The virtuous circle of increasing homeownership homeownership due to greater leverage has the potential to become a vicious cycle of lower home prices due to an accelerating rate of foreclosures.

In December 2002 Melissa B. Jacoby had studied about the investment Risk beyond a Subprim Subprimee Crisis: Crisis: The Role of Delinqu Delinquency ency Managem Management. ent. They They studied studied that that Public Public investment in and promotion of homeownership and the home mortgage market often relies on three justifications to supplement shelter goals: to build household wealth and economi economicc self-suf self-suffic ficienc iency, y, to generat generatee positive positive social-p social-psych sycholog ologica icall states, states, and to devel develop op stabl stablee neighb neighborh orhoo oods ds and commu communit nitie ies. s. Home Homeow owner nershi ship p and mort mortgag gagee obliga obligati tions ons do not inhere inherent ntly ly furth further er these these objec objecti tives ves,, howeve however, r, and some sometim times es undermine them. The most visible triggers of the recent surge in subprime delinquency have produced calls for emergency emergency foreclosure avoidance interventions interventions (as well as frontend regula regulator tory y fixes) fixes).. What Whateve everr their their meri merit, t, I conten contend d that that a syste system m of mortg mortgage age deli delinq nque uenc ncy y mana manage geme ment nt shou should ld be an endu enduri ring ng comp compon onen entt of hous housin ing g poli policy cy.. Furtherance of housing and household policy objectives hinges in part on the conditions under which homeownership is obtained, maintained, leveraged, and - in some situations situations - exited. Given that high leverage or trigger events such as job loss and medical problems play play signi signific ficant ant roles roles in mort mortgag gagee delin delinque quenc ncy y indep independ endent ent of loan loan terms terms,, bette better r origina origination tion practice practicess cannot cannot elimin eliminate ate the need for delinque delinquency ncy managem management. ent. One function of this brief essay is to identify an existing rough framework for managing delinquency. Legal scholarship should no longer discuss mortgage enforcement primarily in terms of foreclosure foreclosure law and instead should include other debtor-creditor debtor-creditor laws such as bankrup bankruptcy tcy,, industry industry loss mitigat mitigation ion efforts, efforts, and third-pa third-party rty interven intervention tionss such such as delinquency housing counseling. In terms of analyzing this framework, it is tempting to focus on its impact on mortgage credit cost and access or on the absolute number of R V Institute of Management Page 18


homes temporarily saved, but my proposed analysis is based on whether the system honors and furthers the goals of wealth building, building, positive social psychological psychological states, and community development. Because those ends are not inexorably linked to ownership generally generally or owning a particular home, a system of delinquency management management that honors these these objecti objectives ves should should strive strive to provide provide fair, fair, transpa transparent rent,, humane, humane, and predict predictable able strategies strategies for home exit as well as for home retention. Although Although more empirical empirical research is needed, this essay starts the process of analyzing mortgage delinquency

2.4 Scope of The Study: The study basically tries to identify the customers are satisfied with their services among ICICI bank and SBI bank and know about the Customer preferences among ICICI and SBI bank. The study was done to individual customer restricted to the city of Bangalore.

2.5 Sample size:For the purpose of this study, the sample size comprise of 100 respondents. ICICI bank - 50 respondents SBI bank -

50 respondents

2.6 Sampling method:For the study on customer service provided by public sector banks and private sector banks with reference to SBI and ICICI bank, random sampling method has been adopted.

2.7 Method of collection of data :Primary Data:- Primary data will be collected through questionnaire and personal interviews. R V Institute of Management Page 19


Secondary Data:- Secondary data will be collected through various sources such as magazine, Internet and business journals.

2.8 Analysis method:Analysis is done on the basis of responses taken from the respondents by making use of tables, charts, diagrams and graphs.

2.9 Limitations of the Study: 

The study is limited to a particular branch of SBI and ICICI bank.



Since the time is less the researcher has taken a sample of 100 people and it will not reveal the whole population of a country.

2.10 Contribution expected from the research:The overall effort is to know about the services provided by ICICI and SBI bank and to know the customer preferences towards private sector and public sector banks.



Chapter 3 INDUSTRY PROFILE



3. OVERVIEW OF THE BANKING INDUSTRY: Banking in India originated in the last decades of the 18th century. The oldest bank in existence in India is the State Bank of India, India, a government-owned bank that traces its origins back to June 1806 and that is the largest commercial commercial bank in the country. Central Central banking is the responsibility of the Reserve Bank of India, India, which in 1935 formally took over over these these respon responsi sibil bilit itie iess from from the the then then Imper Imperia iall Bank Bank of India India,, releg relegati ating ng it to commercial banking functions. After India's independence in 1947, the Reserve Bank was nationalized and given broader powers. In 1969 the government nationalized the 14 largest commercial banks; the government nationalized the six next largest in 1980. Currently, Currently, India has 88 scheduled commercial commercial banks 27 public sector banks (that is with the Governm Government ent of India India hold holdin ing g a stak stake) e),, 29 priv privat atee bank bankss (the (these se do not not have have government stake they may be publicly listed and traded on stock exchanges) and 31 foreign banks. They have a combined network of over 53,000 branches and 17,000 ATMs. ATMs. According to a report by ICRA Limited, a rating agency, the public sector banks hold over 75 percent of total assets of the banking industry, with the private and foreign banks holding 18.2% and 6.5% respectively.

Early History: Banking in India originated in the last decades of the 18th century. century. The first banks were The General General Bank Bank of India, which started started in 1786, and the Bank of Hindust Hindustan an both of which are now defunct. The oldest bank in existence in India is the State Bank of India, which originated in the Bank of Calcutta June 1806, which almost immediately became the Bank of Bombay and the Bank of Madras, all three of which were established under charters from the British East India Company. For many years the Presidency banks acted as quasi-central banks, as did their successors. The three banks merged in 1925 to from the Imperial Bank of India, which upon India’s independence, became the State Bank Of India. Indian merchants in Calcutta established the Union Bank in 1839, but it failed in 1848 as a consequence of the economic crisis of 1848-49. The Allahabad Bank established in 1865 and still functioning today is the oldest joint Stock bank in India. When the American civil war stopped the supply of cotton to Lancashire from the Confederate States, promoters opened banks to finance trading in Indian cotton. With large exposure R V Institute of Management Page 22


to speculative ventures, most of the banks opened in India during that period failed. The depositors lost money and lost interest in keeping deposits with banks. Subsequently banking in India remained the exclusive domain of Europeans for next several decades until the beginning of the 20th century. Foreign banks too started to arrive, particularly particularly in Calcutta Calcutta in the1860s.The Comptoired Comptoired Escompte de Paris opened branch in Calcutta in 1860 and another in Bombay in 1862, branches in Madras and Pondicherry then a French colony followed. Calcutta was the most active trading port in India mainly due to the trade of the British Empire and so became a banking center. Around the turn of the 20th Century, Century, the Indian economy was passing through a relative relative period of stability. Around five decades had elapsed since the Indian Mutiny, and the social industrial and other infrastructure had improved. Indians had established small banks most of which served particular ethnic and religious communities. The presidency banks dominated banking in India but there were also some exchange banks and a number of Indian joint stock banks. All these banks operated in different segments of the economy. The exchange banks mostly owned by Europeans,concentrated on financing foreign trade. Indian joint stock banks were generally undercapitalized and lacked the experience and maturity to compete with the presidency and exchange banks. This segmentation Lord Curzon to observe, “in respect of banking it seems we are behind the time times. s. We are are like like some some old old fashi fashione oned d saili sailing ng ship ship,, divid divided ed by soli solid d wooden wooden bulkheads into separate and cumbersome compartments.” 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. Punjab National Bank is the first Swadeshi Bank founded by the leaders like Lala Lajpat Rai, Sardar Dyal Singh Majithia. The Swadeshi movement in particular inspired local businessmen and political figures to found banks of and for the Indian community. A number of banks established then have survived to the present such as Bank of India, India, Corporation Corporation Bank , Indian Bank, Bank of Baroda, Baroda, Canara Bank and Bank and Central Bank of India. India. The fervor of Swadeshi movement lead to establishing of many private banks in Dakshina Kannada and Udupi district which were unified earlier and known by the name South Canara ( South Kanara ) district. Four nationalized nationalized



banks started in this district and also a leading private sector bank. Hence undivided Dakshina Kannada district is known as "Cradle of Indian Banking".

From World War I to Independence: The period during the First World War (1914-1918) through the end of the Second World War (1939-1945), War (1939-1945), and two years thereafter until the independence of India were challenging for Indian banking. The years of the First World War were turbulent, and it took its toll with banks simply collapsing despite the Indian economy gaining indirect boost due to war-related economic activities. At least 94 banks in India failed between 1913 and 1918 as indicated in the following table:

Number of banks

Authorized capital

Paid-up Capital

that failed

(Rs. Lakhs)

(Rs. Lakhs)

1 9 13

12

2 74

35

1 9 14

42

7 10

10 9

1 9 15

11

56

5

1 9 16

13

2 31

4

1 9 17

9

76

25

1 9 18

7

2 09

1

Years



Post-independence: The partition of India in 1947 adversely impacted the economies of Punjab of Punjab and West Bengal, Bengal, paralyzing banking activities for months. India's independence marked the end of a regime of the Laissez-faire for the Indian banking. The Government of India initiated measures to play an active role in the economic life of the nation, and the Industrial Policy Resolution Resolution adopted by the government in 1948 envisaged a mixed economy. economy. This resulted into greater involvement of the state in different segments of the economy including banking and finance. The major steps to regulate banking included: •

In 194 1948, 8, the the Reser Reserve ve Bank Bank of India India,, India's India's central central banking banking authorit authority, y, was nationalized, and it became an institution owned by the Government of India.

•

In 1949, the Banking Regulation Regulation Act was enacted which empowered empowered the Reserve Bank of India (RBI) "to regulate, control, and inspect the banks in India."

The Banking Regulation Act also provided that no new bank or branch of an existing bank could be opened without a license from the RBI: By the 1960s, the Indian banking industry has become an important tool to facilitate the development of the Indian economy. economy. At the same time, it has emerged as a large employe employer, r, and a debate debate has ensued about about the possibilit possibility y to national nationalize ize the banking banking industry. Indira Gandhi, Gandhi, the-then Prime Minister of India expressed the intention of the GOI in the annual conference of the All India Congress Meeting in a paper entitled "Stray thoughts on Bank Nationalization." The paper was received with positive enthusiasm. Thereafter, her move was swift and sudden, and the GOI issued an ordinance and nationalized the 14 largest commercial banks with effect from the midnight of July 19, 19,1969. 1969. Jayaprakash Jayaprakash Narayan Narayan, a nati nation onal al lead leader er of Indi India, a, desc descri ribe bed d the the step step as a "masterstroke "masterstroke of political political sagacity." Within two weeks of the issue of the ordinance, the Parliament passed the Banking Companies (Acquisition and Transfer of Undertaking) Bill, and it received the presidential the presidential approval on 9 August, 1969. A second dose of nationalization of 6 more commercial banks followed in 1980. The stated reason for the nationalization was to give the government more control of credit delivery. delivery. With the second dose of nationalization, the GOI controlled controlled around 91% of the R V Institute of Management Page 25


banking business of India. Later on, in the year 1993, the government government merged New Bank of India with Punjab National Bank . It was the only merger between nationalized banks and resulted in the reduction of the number of nationalized banks from 20 to 19. After this, until the 1990s, the nationalized banks grew at a pace of around 4%, closer to the average growth rate of the Indian economy. The nationalized banks were credited by some, including Home minister P. Chidambaram, to have helped the Indian economy withstand the global financial crisis of 2007-2009. 2007-2009.

Liberalization: In the early 1990s, the then Narsimha Narsimha Rao gov gover ernm nment ent embar embarked ked on a policy policy of liberalization, licensing a small number of private banks. These came to be known as New Generation tech-savvy banks, and included Global Trust Bank (the first of such new gener generat ation ion banks banks to be set up), up), whic which h late laterr amal amalgam gamate ated d with with Orie Orienta ntall Bank Bank of Commerce, UTI Bank (now (now re-named as Axis Bank ), ), ICICI Bank and Bank and HDFC Bank . This move, along with the rapid growth in the economy of India, India, revitalized the banking sector in India, which has seen rapid growth with strong contribution from all the three sectors of banks, namely, government banks, private banks and foreign banks. The next stage for the Indian banking has been setup with the proposed relaxation in the norms for Foreign Direct Investment, where all Foreign Investors in banks may be given voting rights which could exceed the present cap of 10%,at present it has gone up to 49% with some restrictions. The new policy shook the Banking sector in India completely. Bankers, till this time, were were used used to the the 4-64-6-4 4 meth method od (Bor (Borro row w at 4%;L 4%;Len end d at 6%;G 6%;Go o home home at 4%) 4%) of functioning. The new wave ushered in a modern outlook and tech-savvy methods of working for traditional banks. All this led to the retail boom in India. People not just demanded more from their banks but also received more. Currently Currently (2007), banking in India is generally fairly mature in terms of supply, product product range and reach-even though reach in rural India still remains a challenge for the private sector and foreign banks. In terms of quality of assets and capital adequacy, Indian banks are considered to have clean, strong and transparent balance sheets relative to other banks in comparable economies in its region. The Reserve Bank of India is an autonomous body, with minimal pressure from the government. The stated policy of the Bank on the R V Institute of Management Page 26


Indian Rupee is to manage volatility but without any fixed exchange rate-and this has mostly been true. With the growth in the Indian economy expected to be strong for quite some timeespecia especially lly in its service servicess sector-t sector-the he demand demand for banking banking service services, s, especial especially ly retail banking, banking, mortgages and investment services are expected to be strong. One may also expect M&As, takeovers, and asset sales. In March 2006, the Reserve Bank of India allowed Warburg Warburg Pincus to increase its stake in Kotak Mahindra Bank (a private sector bank) to 10%. This is the first time an investor has been allowed to hold more than 5% in a private sector bank since the RBI announced norms in 2005 that any stake exceeding 5% in the private sector banks would need to be vetted by them. In recent years critics have charged that the non-government owned banks are too aggressive in their loan recovery efforts in connection with housing, vehicle and personal loans. There are press reports that the banks' loan recovery efforts have driven defaulting defaulting borrowers to suicide. No two banks could have common directors. However, despite these provisions, control and regulations, banks in India except the State Bank of India, India, cont contin inue ued d to be owne owned d and and oper operat ated ed by priv privat atee pers person ons. s. Th This is chan change ged d with with the the nationalization of major banks in India on 19 July, 1969.

Nationalization: By the 1960s, the Indian banking industry has become an important tool to facilitate the development of the Indian economy. economy. At the same time, it has emerged as a large employe employer, r, and a debate debate has ensued about about the possibilit possibility y to national nationalize ize the banking banking industry. Indira Gandhi, Gandhi, the-then Prime Minister of India expressed the intention of the GOI in the annual conference of the All India Congress Meeting in a paper entitled "Stray thoughts on Bank Nationalization." The paper was received with positive enthusiasm. Thereafter, her move was swift and sudden, and the GOI issued an ordinance and nationalized the 14 largest commercial banks with effect from the midnight of July of July 19, 19, 1969. 1969. Jayaprakash Jayaprakash Narayan, Narayan, a nati nation onal al lead leader er of Indi India, a, desc descri ribe bed d the the step step as a "masterstroke "masterstroke of political political sagacity." Within two weeks of the issue of the ordinance, the Parliament passed the Banking Companies (Acquisition and Transfer of Undertaking) Bill, and it received the presidential the presidential approval on 9 August, 1969. R V Institute of Management Page 27


A second dose of nationalization of 6 more commercial banks followed in 1980. The stated reason for the nationalization was to give the government more control of credit delivery. delivery. With the second dose of nationalization, the GOI controlled controlled around 91% of the banking business of India. Later on, in the year 1993, the government government merged New Bank of India with Punjab National Bank . It was the only merger between nationalized banks and resulted in the reduction of the number of nationalized banks from 20 to 19. After this, until the 1990s, the nationalized banks grew at a pace of around 4%, closer to the average growth rate of the Indian economy. Thee nati Th nation onal aliz ized ed bank bankss were were cred credit ited ed by some some,, incl includ udin ing g Home Home minist minister er P. Chidambaram, Chidambaram, to have helped the Indian economy withstand the global financial crisis of 2007-2009. 2007-2009.



Chapter 4 Company PROFILE



4.1Company Profile of SBI:

Pure Banking Nothing Else



HISTORY OF SBI: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 exis existe tenc ncee by an act act of Parl Parlia iame ment nt as succ succes esso sorr to the the Impe Imperi rial al Bank Bank of Indi India. a. 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 largest bank in in India India.. If one measures by the number of branch offices and employees, SBI is the largest bank in the world. Established in 1806 as Bank of Calcutta, Calcutta, it is the oldest commercial bank in the Indian subcontinent. subcontinent. SBI provides various domestic, international and NRI 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 regional banking banking behemot behemoth. h. The governm government ent nationa nationaliz lized ed the bank in 1955 1955,, with the Reserve Bank of India taking taking a 60% ownership ownership stake. 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 computerizing its operations and 3), changing the attitude of its employees (through an ambitious programme aptly named 'Parivartan' which means change) as a large number of employees are very rude to customers.

Bank of Bengal H.O. R V Institute of Management Page 31


Roots:The State Bank of India India traces traces its roots roots to the first first decade decade of 19th of 19th century, century, when the Bank of Calcutta, Calcutta, later renamed the Bank of Bengal, Bengal, was established on 2 June 1806 1806.. The government amalgamated Bank of Bengal and two other Presidency banks, namely, the Bank of Bombay (incorporated (incorporated on 15 April 1840 1840)) and the Bank of Madras on 27 January 1921,, and named the reorganized banking entity the Imperial Bank of India. 1921 India. All these Presidency Presidency banks had been incorporated incorporated as joint as joint stock compani companies es,, and were the result of the royal charters. 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, India, authorized the Reserve Bank of India, India, which is the central banking organization of India, to acquire a controlling controlling interest in the Imperial Bank of India, which was renamed the State Bank of India on 30 April 1955 1955..

Bank of Madras

Timeline: 

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



January 2, 2, 1809 1809:: This became the Bank of Bengal. Bengal.



April 15, 15, 1840 1840:: Bank of Bombay established.

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July 1, 1, 1843 1843:: Bank of Madras established.



1861:: Paper Currency Act passed. 1861



January 27, 27, 1921 1921:: all three banks amalgamated to form Imperial Bank of India.





July 1, 1, 1955 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.

June 29, 29, 2007 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.

Bank of Bombay

Associate banks: There are seven other associate banks that fall under SBI. They all use the "State Bank of India" name followed by the regional headquarters' name. These were originally banks belonging to prince to princely ly states before the government nationalized them in 1959 1959.. In tune with with the the firs firstt Five Five Year Year Plan Plan,, emph emphas asiz izin ing g the the deve develo lopm pmen entt of rura rurall Indi India, a, the the governm government ent integra integrated ted these banks banks with with the State Bank of India India to expand expand its rural outreach. The State Bank group refers to the seven associates and the parent bank. All the banks use the same logo of a blue keyhole. Currently, the group is merging all the associate banks into SBI, which will create a "mega bank", and one hopes, streamline operations and unlock value.



1. State Bank of Bikaner & Jaipur 2. State Bank of Hyderabad 3. State Bank of Indore 4. State Bank of Mysore 5. State Bank of Patiala 6. State Bank of Saurashtra

State Bank of India Mumbai LHO

Foreign Offices: State Bank of India is present in 32 countries, where it has 131 branches serving the

international needs of the bank's foreign customers, and in some cases conducts retail operations. The focus of these offices is India-related business.

SBI Office in UK R V Institute of Management Page 34


Growth: State Bank of India has often acted as guarantor to the Indian Government, Government, most notably during Chandra Shekhar 's tenure as Prime Minister of India. India. With more than 12240 branches and a further 8000+ associate bank branches, the SBI has extensive coverage. Following its arch-rival ICICI Bank , State Bank of India has electronically electronically networked most of its metropolitan, metropolitan, urban and semi-urban branches under its Core Banking System System (CBS), with over 4500 branches being incorporated so far. The bank has the largest ATM network in the country having more than 21000 ATMs. The State Bank of India has had steady growth over its history, though the Harshad Mehta scam in 1992 marred its image. In recent years, the bank has sought to expand its overseas operations by buying foreign banks. It is the only Indian bank to feature in the top 100 world banks in the Fortune Global 500 rating and various other rankings. According to the Forbes 2000 listing it tops all Indian companies.

Fortune Global 500 Ranking – 2010: SBI debuted in the Fortune Global 500 at 363 ranks in 2009. In 2010 it moved up to 283. As per fortune 500-2010 following are the data for SBI in $ million. Revenues 28212.8. Profits 2473.3,Assets 323043.9.Stockholders' equity 18519.8 and no of employees are 200,299.

Corporate Details: This site provides comprehensive information on State Bank of India or SBI Bank, the premier Nationalized Indian Bank. State Bank of India is actively involved since 1973 in non-profit activity called Community Services Banking. State Bank of India is India's largest bank amongst all public and private sector banks operating in India. State Bank of India owns and operates the following subsidiaries and Joint Ventures 

State Bank Of India Credit Card



State Bank Of India Online



State Bank Of India USA



State Bank Of India Services



State Bank Of India Mutual Funds





State Bank Of India Branch

Banking Subsidiaries: 

State Bank of Bikaner and Jaipur (SBBJ)



State Bank of Hyderabad (SBH)



State Bank of Indore (SBI)



State Bank of Mysore (SBM)

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State Bank of Patiala (SBP)



State Bank of Saurashtra (SBS)



State Bank of Travancore (SBT)

Foreign Subsidiaries: 

State bank of India International (Mauritius) Ltd.



State Bank of India (California).



State Bank of India (Canada).



INMB Bank Ltd, Lagos.

Non- banking Subsidiaries: 

SBI Capital Markets Ltd (SBICAP)



SBI Funds Management Pvt Ltd (SBI FUNDS)



SBI DFHI Ltd (SBI DFHI)

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SBI Factors and Commercial Services Pvt Ltd (SBI FACTORS)

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SBI Cards & Payments Services Pvt. Ltd. (SBICPSL)

Performance: During the year, the Company recorded a total turnover of Rs 129.78 billion (US $ 2.89billion),export turnover of Rs 11.42 billion (US $ 0.25 billion), import turnover of Rs 0.38 billion (US$ 8.46 million) and domestic turnover of Rs 117.98 billion (US $ 2.63 billion).As at March31, 2010, the Company had advances outstanding of Rs 30,298 million million (US $ 674.79 million),of million),of which the export outstanding outstanding stood at Rs 1,955 million (US $ 43.54 million), import outstanding at Rs 99 million (US $ 2.20 million) and R V Institute of Management Page 36


domestic outstanding at Rs 28,244 million (US $ 629.04 million). Gross NPAs stand at Rs 6,352 million (US $ 141.47 million) and Net NPAs stand at Rs 5,068 million (US $ 112.87 million). The amount to be transferred to Reserve Fund is Rs 13.16 million (US $ 0.29 million).

Summary of Financial Results

Total Turnover

2009-10

2008-09*

(in Rs. Mn.)

(in Rs. Mn.)

1,29,781

1,82,825

Domestic Turnover 1,17,977

1,55,562

11,804

27,263

30,294

45,139

4,931

6,765

108

1,850

66

1,219

International Turnover Advances Outstanding Total Income

Profit Before Tax Profit After Tax



* (includes figures of SBI Factors and Commercial Services Private Limited for the Year 2008-09, since merged with the Company) The company recorded a total income of Rs 4,931 million (US $109.82 million), posted a profit before tax of Rs 108 million (US $ 2.41 million) during the current year against a total income of Rs 6,765 million (US $ 133.28 million) and a profit before tax of Rs 1,850 million (US $ 36.47 million) reported in the previous year.



4.2 State Bank of India offers following product & services to customers:SBI has every product for every need. Listed below are some of its major products and services. 1. Personal Banking:

Personal banking is similar to retail banking. The essence is that the products and services of the bank are tailored to meet individual banking and ancillary needs, including everything from a checking account to investment advice.

A. Deposi Depositt sche schemes mes

a) Current Account: Minimum Account Opening Balance is Rs 10,000/- Current Accounts are non interest bearing accounts. Most Important Terms & Conditions •

Overdraft facility available based on credit history

•

Free ATM / Debit Card in the 1st year; charge from 2nd year onwards.

•

No restrictions on number of Payments / Withdrawals

•

No interest paid on Deposits

•

Transfer of account to any branch possible

•

Account maintenance charge applicable

•

No Passbook is issued but Statement of account is issued



•

•

Nomination facility available KYC Norms of RBI to be followed for opening of Account

Saving & Deposit Account: •

Savings With Cheque Book

Minimum account opening balance: Rs 5,000/Interest payable on the daily closing balance subject to a minimum of Rs 10,000/- and is credited to the account monthly. •

Savings without Cheque Book

Minimum Account Opening Balance: Rs 1,000 Interest Paybale on the minimum daily closin closing g balanc balancee subje subject ct to a mini minimu mum m of Rs 2,000 2,000//- and is credi credite ted d to the the accoun accountt monthly. Most Important Terms & Conditions •

Savings remain liquid, safe and earn interest

•

Interest calculated on daily product basis

•

Charges applied in case of non-maintenance of Average Quarterly Balance (AQB)

•

Nomination facility available

•

Passbook issued to account holders

•

Cheque Book / ATM Cards available free of cost in the 1 st year.Charge from 2nd year onwards.

b) Te Term rm De Deposi posits ts

Minimum Account Opening Balance Rs 50,000/- Interest is payable Quarterly, Yearly or at Maturity, at the option of the depositor. A fixed deposit can be used as Security for your your loan loanss and and Over Overdr draf aftt faci facili liti ties es.. Reta Retail il Depa Depart rtme ment nt a) Savi Saving ngss & Curr Curren entt Administration including Account Opening, Cheque Book Issue, Standing Instruction Monetary, Interbank Transfer, Cheque Clearing etc. b) Term Deposits section including account opening and interest payment etc. R V Institute of Management Page 40


2. Pers Person onal al fina financ ncee

a) Hous Housin ing g Loa Loan n

A home loan is a secured loan that borrowers obtain in order to purchase a home. Because a home is the largest purchase many individuals will ever make, most borrowers utilize home loans to assist with their home purchase. SBI Home Loans come to you on the solid foundation of trust and transparency built in the tradition of State Bank of India. SBI Offers three types of Home Loan for its customers •

SBI Easy Home Loan

Loan amount upto 30 lacs Intere Interest st rat ratee •

: Pres Presen entt effec effecti tive ve rate rate bein being g 9.75% 9.75% p.a. p.a.

SBI Advantage Home Loan

Loan amount above 30 lacs and upto 75 lacs Intere Interest st rat ratee •

: Prese Present nt effe effect ctive ive rate rate bei being ng 10% 10% p.a p.a..

SBI Premium Home Loan

Loan amount above 75 lacs and upto 5 crore



Intere Interest st rat ratee

: Prese Present nt effe effect ctive ive rate rate bei being ng 10% 10% p.a p.a..

b) Car Car Loan Loan

A Loan which is sanctioned for the purchase of an automobile is known as car loan. SBI Offers two types of car Loan for its customers: •

SBI Easy Car Loan

Loan Lo an amoun amountt

: Maxim Maximum um Lo Loan an amoun amountt will will be 2.5 2.5 time timess of net annual annual incom income. e.

Spouse’s income could also be considered provided the spouse becomes a co-borrower in the loan. Loan amount below Rs. 5 lacs will cover under the scheme. Interest Interest rate rate •

: Prese Present nt effec effective tive rate being being 9.25% 9.25% p.a

SBI Advantage Car Loan

Loan Loan amoun amountt : There is no upper upper limit for the amount amount of a car loan. loan. A maximu maximum m loan amount of 4 times the net annual income can be sanctioned. Spouse’s income could also be considered provided the spouse becomes a co-borrower in the loan. Interest Interest rate rate

: Prese Present nt effec effective tive rate being being 11% 11% p.a p.a

c) Ed Educ ucat atio ion n Loa Loan n



A term loan granted to Indian Nationals for pursuing higher education in India or abroad where admission has been secured. Loan oan Am Amount ount :

For st studie dies in in In India dia, ma maxim ximum Rs. 10 lacs Studies abroad, maximum Rs. 20 lacs

Interest Rate :

Upto 4 lacs 12% Above 4 lacs and upto 7.5 lacs 13.50% Above 7.5 lacs 12.50%

3.

Services:

State Bank of India offers a wide range of services in the Personal Banking Segment which are indexed here.

a) ATM ATM Ser Servi vice cess



State State Bank Bank offer offerss you you the the conve convenie nience nce of over over 21,000 21,000 ATMs ATMs in India India,, the large largest st 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 and wholly owned subsidiary viz. SBI Commercial and International Bank Ltd., using the State Bank ATM-cum-Debit (Cash Plus) card. KINDS OF CARDS ACCEPTED AT STATE BANK ATMs :

Besides State Bank ATM-Cum-Debit Card and State Bank International ATM-CumDebit Cards following cards are also accepted at State Bank ATMs: 1) State Bank Credit Card. 2) Cards issued by other banks displaying Maestro, Master Card, Cirrus, VISA and VISA Electron logos. 3) All Debit/ Credit Cards issued by any bank outside India displaying Maestro, Master Card, Cirrus, VISA and VISA Electron logos. State Bank ATM-cum-Debit (State Bank Cash plus) Card :

India's largest bank is proud to offer you unparalleled convenience viz. State Bank ATM-cum-Debit (Cash Plus) card. With this card, there is no need to carry cash in your wallet. You can now withdraw cash and make purchases anytime you wish to with your ATM-cum-Debit Card.



Get an ATM-cum-Debit card with which you can transact for FREE at any of over 21,000 ATMs of State Bank Group within our country. Transaction Limits: Daily limit of Rs 40,000/- at the ATM

Daily limit of Rs 50,000/- at Point of Sale (POS) terminal for debit transactions Combined daily limit of Rs 90,000/ b) INTERNET BANKING

www.sbionline.com, the Intern Internet et bankin banking g portal portal of our bank, enables enables its retail bankin banking g customers customers to operate operate their accounts from anywhere anywhere anytime, anytime, removing removing the restriction restrictionss imposed imposed by geography and time. It's a platform that enables the customers to carry out their banking activities from their desktop, aided by the power and convenience of the Internet. Using Internet

banking services, you can do the following normal banking transactions online: Funds transfer between own accounts. Third party transfers to accounts maintained at any branch of SBI Group Transfers to accounts in State Bank Group Inter Bank Transfers to accounts with other Banks Online standing instructions for periodical transfer for the above Credit PPF accounts across branches Request for Issue of Demand Draft Request for opening of new accounts Request for closure of Loan Accounts



c) E-RAIL

Book your Railways Ticket Online

The facility has been launched wef Ist September 2003 in association with IRCTC. The scheme facilitates Booking of Railways Ticket Online. d) Mobile Banking

State Bank Freedom – Your Mobile Your Bank

Away from home, balance enquiries can be made and/or money sent to the loved ones or bills can be paid anytime 24x7!!! That is what State Bank Freedom offers -convenient, simple, secure, anytime and anywhere banking. The following functionalities are available: •

Funds transfer (within and outside the bank)

•

Interbank Mobile Payment Services (IMPS)

•

Enquiry services (Balance enquiry/ Mini statement)

•

Cheque book request

•

Demat Enquiry Service



•

Bill Bill Paym Payment ent (Uti (Utili lity ty bills bills,, credi creditt cards, cards, Insur Insuranc ancee premi premium um), ), Donat Donatio ions, ns, Subscriptions

•

Mobile Top up

•

M Commerce (Top up of Tatasky, BigTV, SunDirect, DishTV connections and receive recharge pins for DigitalTV/Videocon d2h, SBI life insurance premium).

e) Safe Safe Dep Depos osit it Lock Locker er

For the safety of your valuables, we offer safe deposit locker facility at a large number of our branches. There is a nominal annual rent, which depends on the size of the locker and the centre at which the branch is located. The rent is payable in advance for the Financial Year. A copy of the locker agreement regarding operation of the locker can be provided to the locker hirer at the time of allotment of the locker. Most Important Terms & Conditions

1. Annual rental is payable in advance. 2. Rental depends on the size of the lockers and location of the branch via metro/urban or semi-urban/rural 3. One time registration charges for all center is also levied. 4. KYC norms are applicable for locker hirers. 5. Lockers cannot be allotted to minors either singly or jointly with others.

4. INSURANCE:



SBI Life Insurance is a joint venture between State Bank of India and BNP Paribas Assurance. SBI owns 74% of the total capital and BNP Paribas Assurance the remaining 26%. SBI Life Insurance has an authorized capital of Rs. 2,000 cores and a paid up capital of Rs 1,000 cores.

SBI Life offers a wide range of services to you where not only you can track your account, generate generate premium online. Also you can now pay your premium online with our Electronic Clearing Service which is convenient and minimizes time & effort. The various Insurance plans offered by SBI in Insurance sector are:



Protection Plan



Saving Plan



Unit Linked Plan



Child Plan



Pension Plan



Health Plan

A) Protection Plan: Protection Plans are low cost insurance plans which are specially designed to provide full protection & financial stability to your family in case of any unforeseen events. SBI SBI Life Life presen presents ts range range of attra attract ctive ive prote protect ction ion plans plans so that that you you can conti continue nue to celebrate life without worrying about the uncertainties of life.



a) SBI Life - Smart shield:

SBI Life - Smart Shield is a traditional non-participating non-participating pure term plan, which is a one stop solution that meets all your insurance needs. With Options and benefits specially tailored for those who want best financial protection at an affordable cost, this is the perfect plan from your preferred insurance provider. Now your family stays protected, even when you are not around. Key Features: •

Establishes a solid foundation for a lifetime of financial security for your

•

family at a significantly low cost. Rewards you for maintaining a healthy lifestyle.

•

Wide variety of plan options to give you completes freedom from your liabilities.

Benefits: Death Benefit: Depending on the plan option chosen, the nominee will •

•

receive the effective Sum Assured under this policy. Maturity Benefit: No survival benefit available at the end of the term.

b) SBI life – Saral Shield: R V Institute of Management Page 49


SBI Life Saral Shield is a traditional non-participating pure term plan, At a nominal cost; Saral Shield provides cover for your family and ensures that a proper safe safety ty net net is crea create ted. d. Th Thus us,, it guar guaran ante tees es that that ther theree will will be abso absolu lute tely ly no compromise on your dreams and ambitions for your loved ones, at all times. Key Features: •

Hassle-free, convenient and easy issuance.

•

Complete Financial Security at truly lower costs.

•

Wide varieties of plan options to give you complete freedom from your

•

liabilities. Attractive large sum assured rebates.

c) SBI Life – Swadhan:

SBI Life - Swadhan is an affordable traditional term Insurance policy with refund of part / Total basic premium paid at the end of the term to the policyholder. As a Maturity benefit, you receive a repayment of your premium contribution towards the policy. Available at a low premium, it can provide security to your loved ones. Key Features: Protection at affordable premium •

•

Guaranteed refund of basic premium paid on Survival at the end of the term, depending upon the term of the policy.

•

Life cover comes to you at no cost



B) Unit Linked Plan: Unit Linked Insurance Plans are long term investment cum protection plans that offer you an opportunity of availing market linked returns while providing life insurance protection. Depending on your risk appetite, you have the option of choosing from host of funds having varied degree of risk exposure. Flexibility Flexibility and transparency transparency are some of the other attractive features that make ULIPs an attractive long term investment option. To help you fulfill your long term dreams, SBI Life presents you a wide range of ULIPs so that you continue to Celebrate Life!

a) SBI Life – Smart Performer:

The equity market may have its ups and downs, but you now have a protective shield that will safeguard your investments, while providing upside potential. SBI Life brings you ’Smart Performer’, a unique Unit Linked, Non Participating insurance product that offers you the twin benefits of ’Higher than the Highest’ of the daily NAV Guarantee and the prospect of market upside. It also allows you to protect your gains through Automatic Rebalancing facility and offers you a choice of Single and Limited Premium Payment options. •

Key Features:

Guarantee at maturity based on ‘5% Higher than Highest Guaranteed NAV’ during the first seven years or prevailing NAV at Maturity, whichever is higher, subject to conditions. •

Enjoy the best of both worlds - Guarantee only or Guarantee and Market Upside through our unique Plan offerings - ‘Secure Plan’ and ‘Secure N Grow Plan’ respectively.



•

Life Insurance coverage with minimum Sum Assured of 10 times or 7 times of your Annualized Premium (AP), based on your age.

b) SBI Life - Saral Maha Anand:

SBI SBI Life ife - Sara Sarall Maha Maha Anan Anand, d, a unit unit link linked ed insu insura ranc ncee cum cum savi saving ngss plan plan.. Getting a Life Insurance policy was never so easy.No medical examination, which means hassle-free hassle-free coverage. Enjoy the power of liquidity liquidity through partial withdrawals. withdrawals. All these benefits at affordable costs, only for you. Key Benefits: •

•

No medical examination, Simple joining process Guaranteed Additions of up to 30% of one annual premium, for a 20 year policy term, subject to the Policy being in force till the maturity date.

•

Option to avail additional rider benefit under SBI Life - Accidental Death Benefit Linked Rider.

c) SBI Life – Smart Wealth Assure:

Equity Market Performance is affected by many variables like Economic condition, Liquidity, Corporate Performance, Global Markets etc. Thus you are not sure what R V Institute of Management Page 52


returns you will get on your hard earned money. SBI Life realises the same and brings to you ‘Smart Wealth Assure’ which takes care of all these variables and gives you ‘Peace of Mind’ by providing a Minimum NAV Guarantee Plus Upside, if any. SBI Life - Smart Wealth Assure is a unit Linked non participating Life Insurance Plan. The Plan is further fortified with many power packed features which takes care of your financial needs. Key Features: •

Option to choose a mix of funds providing Guaranteed Return and Market Linked Returns.

•

Guaranteed Return provided through Return Guarantee Fund (RGF) which guarantees a Minimum Pre-specified NAV, subject to conditions.

•

Pay only once and get the benefits throughout the Policy Term.

d) SBI Life – Smart Elite:

SBI Life - Smart Elite is a Unit Linked Insurance plan - an exquisitely crafted product, exclusively for special customers like you. It gives you flexibility to pay premium for limited term or single premium, with the freedom to stay invested and protected protected for long term. What’s more, you have the power of choosing the option best suited to your needs, at a very competitive rate. All this and more, coming from SBI Life – your preferred insurer, adds enormous value to your investments. Key Features: •

Maximum value addition through excellent allocation rates.

•

Pay premiums only for a limited term of 5, 8 or 10 years or a Single Payment, as per your convenience and enjoy benefits throughout the chosen policy term.



•

Accidental Death and Accidental Total and Permanent Disability benefit automatically comes to you as an integral part of the plan.

e) SBI Uint Plus Super:

SBI Life – Unit Plus Super is a flexible non participating Unit linked insurance Plan, specially designed to meet your changing requirements at various stages of life. With a wide array of funds, riders and other options, this product gives you the complete freedom to fulfill all your investment and insurance needs. And that’s not all; we now also offer you guaranteed guaranteed additions additions and choice of paymen paymentt options, options, giving giving you far superior value. Key Features: •

Guaranteed Additions of up to 75% of one annual regular premium on a regular premium policy, for a 30 year policy term, subject to the Policy being in force till the maturity date.

•

No Policy Administration fee for first 5 years for Regular and Limited Premium Paying Term plans, thereby boosting your fund value.

•

Option to pay Regular/Limited/ Single Premium; Switch or Redirect your premiums.

C) Saving Plan: You may have plans for your loved ones or for yourself. It makes perfect sense to prepare well in advance with saving plan combined with life insurance cover. SBI Life’s plans will help you plan for your savings, be it your child’s wedding or education, buying a house or that dream vacation. So that you can Celebrate Life.



a) SBI Life – Money Back:

SBI Life – Money Back is a traditional participating participating savings plan with added advantage of life cover and cash inflow at regular intervals. In order to meet your various financial obligations at crucial junctures, it offers a wide range of terms options with regular payments of Guaranteed Survival benefits made at different durations during the policy term. Key Features: •

The plan has a number of money back options specially suited to your needs.

•

It has guaranteed cash inflows which can meet your various financial obligations.

Benefits: •

DeathBenefit: In the unfortunate event of death during the term of the plan, the nominee will recei receive ve sum sum assur assured ed plus plus veste vested d bon bonuse uses, s, (accr (accrued ued till till the the date date of death death), ), No deductions are made from the claim amount for the survival benefits already paid. Exclusions applicable to the basic cover suicide within the first year.

•

Tax Benefit SBI Life Money Back Plan enjoys Tax benefit u/s 80C and 10(10D) of IT Act* Premiums paid for Critical Illness Benefit qualify for tax exemption under Sec 80D*



b) SBI Life – Saral Life:

SBI Life - Saral Life, a traditional, participating endowment plan which helps you to meet any requirement in life and is designed with a difference…a take away insurance especially weaved for you with the threads of Simplicity, Availability & value for your money. Key Features: •

An unique savings cum insurance cover with easy acceptance.

•

Flexibility in Coverage - Sum Assured in options of Rs.1 lakh / Rs.2 lakhs / Rs.3 lakhs.

Benefits: •

Maturity Benefit:- On survival of the life assured, till the policy term, the Sum Assured along with the accrued regular bonus and terminal bonus (if any) is payable.

•

Death Benefit:- In case of unfortunate demise of the life assured within the policy term, the Sum Assured along with the accrued regular bonus and terminal bonus (if any) is payable to the nominee.

c) SBI Life – Shubh Nivesh: R V Institute of Management Page 56


SBI Life - Shubh Nivesh is an Endowment product with an option of Whole Life coverage. The basic purpose is to provide Savings, Savings, Income Income and Protection to you and your family. Not only you can save regularly for your future but you also have the flexibility to receive the maturity amount as a lump sum or as a regular income for a chosen period, depending upon your needs. Key Features: •

A unique Savings cum Protection Plan with the flexibility of Whole Life option as an add-on.

•

Triple benefits of Wealth Creation, Regular Income and Protection under a single plan.

•

Convenience of premium payment options - Single Premium and Regular Premium.

D) Child Plan: As a caring parent you would always want your child to get the very best. To ensure that you fulfill dreams that you may have for your loved ones, financial planning for their secured future is very important. At SBI Life, we understand that. That’s why we present you host of child plans so that you can choose the one that suits your and your child’s needs best. Our plans are as accommodating as you are for your child.

a) SBI Life – Smart Scholar:



Life begins afresh when you become a parent. It’s a joy you never felt and a feeling you never experienced. When your child takes baby steps towards you, you wonder what else bliss could be? Amidst all this divine happiness, there’s a new sense of responsibility that fills your heart. Like you may not really believe that life’s a rose bed or a tender cushion, but you certainly want it to be for your lovely children. At SBI Life, we understand and we provide you with a unique, flexible and all-encompassing solution through our SBI Life Smart Scholar Plan. Key Benefits: •

Secure your child’s future by gaining from the financial markets and much more.

•

Dual protection for your family, in case you are not around –

•

Payment of base Sum Assured

•

Inbuilt Premium Payor Waiver benefit to ensure continuance of your benefits.

•

Accident Benefit which includes Accidental Death benefit and Accidental Total and Permanent Disability benefit, is an integral part of the plan.

E) Pension Plan: Increasing life expectancy rate, rising health care costs, absence of social security system in India and disintegration of joint family system are some of the key reasons that makes retirement planning very critical. To help you continue celebrating your life post-retirement to the fullest, SBI Life presents you an array of pension plans which are simple and innovative.

a) SBI Life – Life Long Pension Plus:

SBI Life - Lifelong Pension Plus is a unique individual non participating traditional pension plan, which gives you total safety and security while offering you complete R V Institute of Management Page 58


transparency and flexibility. This Plan is a perfect way for you to accumulate your savings and purchase an annuity with it, a time of your choice, to give you regular income. You would agree that all this will surely give you a secure future, and a joyous retirement. Key Features: •

You have complete freedom to avail of a Pure Pension option or get the added advantage of insurance protection.

•

Complete Transparency: You will know how your premiums are growing each step of the way. At the end of each financial year, the fund will be credited with investment income based on the investment return earned.

•

Guaranteed Additions of 10% of Annual Premium on 15th policy anniversary & 10% of Annual Premium on every 5th policy anniversary thereafter in case of Regul Regular ar Premi Premium um polic policy y wherea whereass for Singl Singlee Prem Premiu ium m polic policy, y, 1% of Singl Singlee Premium on 15th policy anniversary & 1% of Single Premium on every 5th policy anniversary thereafter.

b) SBI Life – Smart Pension:

SBI Life -Smart Pension, a unit linked deferred pension plan.With the changing social and economic environment, shifting individual and family needs, it is advisable to follow a dynamic retirement planning process to improve the probability of success of your retirement plan. A unit linked deferred pension plan, which offers you the flexibility to provide for all your retirement goals at one go or as per your convenience, spread over a period of time. What’s more, it provides you a minimum guaranteed return on the gross premiums paid. Key Features: •

Enjoy the benefit of guaranteed amount at maturity.



•

Option to avail pension by paying only one single premium.

•

Phase your retirement income - You have an option to take multiple single premium Policies, at lower costs.

F) Health Plan: Financial planning is incomplete without planning health insurance. Due to today’s hectic lifestyle, improper diet, lack of exercise we are at higher risk of contingencies of untimely serious illnesses. Sudden health problems could have deep hole in your pockets. Medical science has advanced by leaps and bounds in the last few decades. There’s a definite need to cover for health insurance to reduce the financial burden.

a) SBI Life – Hospital Cash:

Good health is the most valuable asset that we have, but nowadays with increasing levels of stress, negligible physical activity and changing lifestyle our vulnerability to diseases is increasing at an alarming pace. The cost of healthcare is rising everyday and more than the cost of your treatment, indirect indirect costs like - hospita hospitall room rent, nursing expenses, expenses, post discharge discharge expenses expenses,, recuperating expenses, ambulatory charges etc account for a major part of the overall cost incurr incurred. ed. Lack Lack of suffi sufficie cient nt savin savings gs or a suita suitabl blee healt health h polic policy y may may force force you you to compromise on the quality of medical treatment. We feel you certainly deserve better. SBI Life - Hospital Cash is a comprehensive plan that covers not only hospitalization



expenses but also other incidental costs. This plan offers you complete freedom from worries. Key Features: •

100% payout from day one of hospitalization without any deductible.

•

Guaranteed coverage up to 75 years.

•

Coverage of Pre-existing diseases after 2 years.

•

Enhanced sum assured and increased payouts on each policy anniversary in case of No claim.

5. DEMAT SERVICES: State Bank of India, which is country’s largest public sector bank, is certainly the most preferred choice of crores of Indians. It provides the facility where you can trade online through demit accounts since this account is one of the prerequisites to start with any kind of trading.

SBI Demat account brokerage charge:

SBI Demat account brokerage charges vary depending on the amount which one puts in. There are various types of brokerages as well. SBI Demat account turnover per month versus brokerage rates are-

Turnover

Brokerage

0 – 5 lakh 5 – 10 lakh 10 – 25 lakh 25 – 50 lakh 50 – 75 lakh 75 lakh – 2 Crore 2 Crore and above

0.50% 0.45% 0.40% 0.35% 0.30% 0.25% 0.15%

SBI Demat account turnover versus brokerage rates for Intraday trading are-



Turnover

Brokerage

< 25 lakh 25 – 50 lakh 50 lakh – 1.5 Crore 1.5 – 3 Crore 3 – 6 Crore 6 – 10 Crore Above 10 Crore

0.15% 0.12% 0.10% 0.08% 0.07% 0.06% 0.05%

6. CUSTOMER RELATATION SERVICES: The SBI customer care service is probably the best customer service offered by various banks banks in India India and across the world. world. The SBI customer care service is presumably the most excellent in comparison to other banks. The bank through its customer service deals with all kinds of difficulties faced by the clients in relation to the banking services offered by SBI. The customer care executive pay attention to the problems problems put out by the bank customers and provides them with an applicable and relevant solution to their doubts concerning the bank products and services. The SBI always aims for providing necessary assistance assistance and information to its clients and attempts to cater to all the banking needs regarding the highest quality of its services. SBI has a 24 hour customer care helpline specially devoted to entertain all the queries, suggestion and problems etc. put up by the bank’s customers. One can dial up the customer care helpline and esquire about any of the product and services including that on the home loan and other offered by the bank. One can also get information about the terms and conditions laid down by the bank about the various services and products offered by the bank.



4.3 Awards & Recognitions

•

Adjudged, Bank of The Year 2009, India by The Banker b Magazine for the second year in succession.

•

Awarded “Best Bank - Large”, and “Most Socially Responsible Bank” from Business World Best Bank Awards 2009.

•

The Bank bagged the BEST BANK 2009 Award by Business India.

•

Adjudged the Most Trusted Brand 2009 - Economic Times, Brand Equity.

•

Bagged the awards for “Most Preferred Bank”, “Most Preferred Credit Card’ and “Most Preferred Home Loan Brand” from CNBC AWAAZ Consumer Awards, Sept ’09.



•

Awarded Visionaries of Financial Inclusion – Year 2009 by Financial Information Network & Operations Ltd.

•

Awarded Technology Bank of the Year in recognition of outstanding achievements in banking technology – IBA Banking Technology Awards 2009.

•

Selected as the winner of Golden Peacock National Training Award for the year 2009 by the Golden Peacock Awards Jury.

•

Awarded the Strongest Banks in Asia Award 2010 for the Asia- Pacific region under The Asian Banker Excellence in Retail Financial Services Awards 2010.

•

Awarded the Best Microfinance Award for 2009 under The Asian Banker Excellence in Retail Financial Services Awards 2010.

4.4 Company Profile of ICICI:



ICICI BANK | khayaal aapka

Khayaal Aapka: Over the past decade ICICI Bank has redefined the banking landscape. Through a deep understa unde rstandin nding g of cust custome omerr need needs, s, it has leve leverage raged d tech technolo nology gy to int introdu roduce ce seve several ral innovations to make banking simple and convenient for the consumer. Continuing with our co comm mmitm itment ent tow towar ards ds de deepe epenin ning g our rel relat atio ionsh nship ip wi with th our cus custo tome mers, rs, we hav havee undertaken many initiatives to strengthen the customer experience through multiple touch points such as bank branches, internet banking, mobile banking and phone banking. In addition we have continued to offer products and services that have been thoughtfully designed, keeping the consumer in mind. Khayaal aapka is a reflection of this commitment that we have towards our customers. Khayaal aapka embodie embodiess our relationships with customers that go beyond transactions transactions it is our commitment to treat our customers fairly, show empathy towards customer needs and create and deliver products and services that make a difference to our customers' lives.



ICICI Bank is India's second-largest bank with total assets of Rs. 3,849.70 billion (US$ 82 billion) at March 31, 2010 and profit after tax Rs. 40.25 billion for the year ended March 31, 2010. The Bank has a network of about 2,529 branches and 6,000 ATMs in India and presence in 19 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. Thee Bank Th Bank curren currentl tly y has has subsi subsidi diari aries es in the the Unit United ed Kingd Kingdom om,, Russi Russiaa and and Canad Canada, a, branches in United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International Finance Centre and representative offices in United Arab Emirate Emirates, s, China, China, South South Africa, Africa, Banglad Bangladesh, esh, Thaila Thailand, nd, Malaysi Malaysiaa and Indone Indonesia sia.. Our Our UK subsid subsidiar iary y has estab establi lishe shed d branc branches hes in Belg Belgium ium 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).

History: 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, an equity offering in the form of ADRs listed on the NYSE in fiscal 2000, ICICI Bank's acquisition of Bank of Madura Limited in an all-stock amalgamation in fiscal 2001, and secondary market sales by ICICI to institutional institutional investors in fiscal 2001 and fiscal 2002. ICICI was formed in 1955 at the initiative of the World Bank, the Government of India and representatives of Indian industry. The principal objective was to create a development financial institution for providing medium-term and long-term project financing to Indian businesses. In the 1990s, ICICI transformed its business from a development financial institution offering only project finance to a diversified financial services group offering a wide variety of products and services, services, both directly and through a number of subsidiaries subsidiaries R V Institute of Management Page 66


and affiliates like ICICI Bank. In 1999, ICICI become the first Indian company and the first bank or financial institution from non-Japan Asia to be listed on the NYSE. After consideration of various corporate structuring alternatives in the context of the emerging competitive scenario in the Indian banking industry, and the move towards universal banking, the managements of ICICI and ICICI Bank formed the view that the merger of ICICI with ICICI Bank would be the optimal strategic alternative for both entities, and would create the optimal legal structure for the ICICI group's universal banking strategy. The merger would enhance value for ICICI shareholders through the merged entity's access to low-cost deposits, greater opportunities for earning fee-based income and the ability to participate in the payments system and provide transaction banking services. The merger would enhance value for ICICI Bank shareholders shareholders through a large capital base and scale of operations, seamless access to ICICI's strong corporate relationships relationships built up over five decades, entry into new business segments, segments, higher market share in various business segments, particularly fee-based services, and access to the vast talent pool of ICICI and its subsidiaries. In October 2001, the Boards of Directors of ICICI and ICICI bank approved the merger of ICICI and two of its wholly-owned retail finance finance subsidia subsidiarie ries, s, ICICI ICICI Persona Personall Financi Financial al Services Services Limited Limited and ICICI ICICI Capital Capital Services Limited, with ICICI bank. The merger was approved by shareholders of ICICI and ICICI bank in January 2002, by the High Court of Gujarat at Ahmadabad in March 2002, and by the High Court of Judicature at Mumbai and the Reserve Bank of India in April April 200 2002. 2. Conse Conseque quent nt to the merge merger, r, the the ICIC ICICII group' group'ss finan financi cing ng and and banki banking ng operations, operations, both wholesale and retail, have been integrated integrated in a single entity. ICICI bank has formulated a Code of Business Conduct and Ethics for its directors and employees. ICICI bank (formerly Industrial Credit and Investment Corporation of India) is India's India's largest private sector bank in market capitalization and second largest overall in terms of assets. Bank has total assets of about USD 100 billion (at the end of March 2010), a network of over 2,529 branches, 22 regional offices and 49 regional processing centers, about 6000 ATMs (at the end of March 2010), and 24 million customers (at the end of March 2010). ICICI bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and specialized subsidiaries subsidiaries and affiliates affiliates in the areas of investment investment banking, life and non-life insurance, insurance, venture capital and asset management. (These data are dynamic.) ICICI Bank is also the R V Institute of Management Page 67


largest issuer of credit cards in India. ICICI Bank has got its equity shares listed on the stock exchanges at Kolkata and Vadodara, Vadodara, Mumbai and the Natio the National nal Stock Exchange Exchange of India Limited, Limited, and its ADRs on the New the New York Stock Exchange (NYSE). The Bank is expanding in overseas markets and has the largest international balance sheet among Indian banks. ICICI Bank now has wholly-owned subsidiaries, branches and represen representat tatives ives offices offices in 18 countrie countries, s, includi including ng an offshore offshore unit in Mumbai. Mumbai. This includes wholly owned subsidiaries in Canada, Russia and the UK, offshore banking units in Bahrain and Singapore, an advisory branch in Dubai, branches in Belgium, Hong Kong Kong and Sri Sri Lanka Lanka,, and repre represen senta tati tive ve offic offices es in Bangl Banglade adesh, sh, China China,, Malay Malaysia sia,, Indonesia, South Africa, Thailand, the United Arab Emirates and USA. Overseas, the bank is targeting the NRI (Non-Resident Indian) population in particular.

Timeline:



ICICI Bank HQ in MUMBAI 

1955: The Industrial Industrial Credit and Investment Corporation of India Limited (ICICI) was incorporated at the initiative of World Bank, the Government of India and representatives of Indian industry, with the objective of creating a development financial institution for providing medium-term and long-term project financing to Indian businesses. Mr. A.Ramaswami Mudaliar is elected as the first Chairman of ICICI Limited. o

ICICI emerges as the major source of foreign currency loans to Indian indust industry ry.. Besi Besides des fundin funding g from from Worl World d Bank Bank and and other other mult multi-l i-lat ater eral al agencies, ICICI was also among the first Indian companies to raise funds from international markets.



1956: ICICI declared its first dividend, of 3.5%.



1958: Mr.G.L.Mehta appointed the second Chairman of ICICI Ltd.



1960: ICICI building at 163, Backbay Reclamation, inaugurated.



1961: The first West German loan of DM 5 million from Kredianstalt obtained.



1967 1967:: ICIC ICICII made ade its its firs firstt debe debent ntur uree issu issuee for for Rs.6 s.6 cror crore, e, whic which h was oversubscribed.



1969: The first two regional offices set up in Calcutta and Madras.



1972: ICICI becomes the second entity in India to set up merchant banking services. o



Mr. H. T. Parekh appointed the third Chairman of ICICI.

1977 1977:: ICIC ICICII spon sponso sore red d the the form format atio ion n of Hous Housin ing g Deve Develo lopm pmen entt Fina Financ ncee Corporation and manages its first equity public issue.



1978: Mr. James Raj appointed the fourth Chairman of ICICI.



1979: Mr.Siddharth Mehta appointed the fifth Chairman of ICICI.



1982: ICICI became the first ever Indian borrower to raise European Currency Units.



o

ICICI commences leasing business.



1984: Mr. S. Nadkarni appointed the sixth Chairman of ICICI.



1985: Mr. N.Vaghul appointed the seventh Chairman and Managing Director of ICICI.



1986: ICICI became the first Indian institution to receive ADB Loans. o

ICICI, along with UTI, set up Credit Rating Information Services of India Limited, India's first professional credit rating agency.

o

ICIC ICICII prom promote otess Ship Shippin ping g Credi Creditt and Invest Investme ment nt Comp Company any of India India Limited.

o

Thee Corpo Th Corpora rati tion on made made a pub publi licc issue issue of Swis Swisss Fran Francc 75 mill million ion in Switzerland, the first public issue by any Indian entity in the Swiss Capital Market.



1987 1987:: ICIC ICICII sign signed ed a loan loan agre agreem emen entt for for Ster Sterli ling ng Poun Pound d 10 mill millio ion n with with Common Commonweal wealth th Developm Development ent Corpora Corporatio tion n (CDC), (CDC), the first first loan by CDC for financing projects in India.



1988: Promoted TDICI - India's first venture capital company.



1993: ICICI Securities and Finance Company Limited in joint venture with J. P. Morgan set up. o

ICICI Asset Management Company set up.



1994: ICICI Bank set up.



1996: ICICI Ltd became the first company in the Indian financial sector to raise GDR.



o

SCICI merged with ICICI Ltd.

o

Mr. K.V.Kamath appointed the Managing Director and CEO of ICICI Ltd

1997 : ICICI Ltd was the first intermediary to move away from a single prime rate structure to a three-tier prime rates structure and introduced yield-curve-based pricing.



o

The name "The Industrial Credit and Investment Corporation of India Ltd" changed to "ICICI Ltd."

o



ICICI Ltd. announced the takeover of ITC Classic Finance.

1998: A new logo symbolizing the common corporate identity for the ICICI Group was introduced. o



ICICI announced takeover of Anagram Finance.

1999 199 9 : ICIC ICICII launc launche hed d retai retaill financ financee - car car loans, loans, home home loans loans and loans loans for for consumer durables. o

ICIC ICICII becom becomes es the the first first Indian Indian comp company any to get get liste listed d on the the NYSE NYSE through an issue of American Depositary Shares.



2000 : ICICI Bank became the first commercial bank from India to get its stock listed on the NYSE. o



ICICI Bank announces merger with Bank of Madura.

2001: The Boards of ICICI Ltd and ICICI Bank approved the merger of ICICI Ltd. with ICICI Bank.



2002: ICICI Ltd merged with ICICI Bank Ltd to create India’s second-largest bank in terms of assets. o

ICICI assigned higher than "Sovereign" rating by Moody’s.

o

ICICI Bank launched India’s first CDO (Collateralized Debt Obligation) Fund Fund named named Indian Indian Corpo Corporat ratee Coll Collat atera erali lized zed Debt Debt Oblig Obligat ation ion Fund Fund (ICCDO Fund).

o

"E-Lobby", "E-Lobby", a self-service banking centre and a first of its kind in India, is inaugurated in Pune.

o



ICICI Bank launched Private Banking.

2003: The first Integrated Currency Management Centre launched in Pune. o

ICICI Bank announced the setting up of its first-ever offshore branch in Singapore.



o

The first offshore banking unit (OBU) at SEEPZ Special Economic Economic Zone, Mumbai, was launched.

o

ICICI Bank’s UK subsidiary launched.

o

India’s first ever "Visa Mini Credit Card", a credit card 43% smaller in dimensions was launched.



2004: Max Money, a home loan product that offers the dual benefit of higher eligibility and affordability to a customer, introduced o

Mobile banking service in India launched in association with Reliance Infocomm.

o

India’s first multi-branded credit card with HPCL and Airtel launched.

o

Kisan Loan Card and innovative, low-cost ATMs were launched in rural India.

o

ICIC ICICII Bank Bank and and CNBC CNBC TV 18 announ announce ced d India India’s ’s first first ever ever award awardss reco recogn gniz izin ing g the the achi achiev evem emen ents ts of SMEs SMEs,, a pion pionee eeri ring ng init initia iati tive ve to encour encourage age the contr contribu ibuti tion on of Smal Smalll and Mediu Medium m En Ente terpr rprise isess to the growth of the Indian economy.

o

ICICI Bank introduced 8 to 8 Banking wherein all the branches of the Bank would remain open from 8a.m. to 8 p.m. from Monday to Saturday.

o

ICICI Bank introduced the concept of floating rate for home loans in India.



2005: First rural branch and ATM launched in Uttar Pradesh at Delpandarwa, Hardoi. o

"Free for Life" credit cards launched wherein annual fees of all ICICI Bank Credit Cards were waived off.

o

ICICI Bank and Visa jointly launched mChq – a revolutionary revolutionary credit card on the mobile phone.

o

ICICI Bank became the largest bank in India in terms of its market capitalization.

o

ICICI Bank became the first private entity in India to offer a discount to retail investors for its follow-up offer.





2006: ICICI Bank became the first Indian bank to issue hybrid Tier-1 perpetual debt in the international markets. o

ICICI Bank subsidiary set up in Russia.

o

Introduced a new product - ‘NRI smart save Deposits’ – a unique fixed deposit scheme for nonresident Indians.

o

Representative offices opened in Thailand, Indonesia and Malaysia.

o

ICICI Bank became the largest retail player in the market to introduce a biom biomet etric ric enabl enabled ed smart smart card card that that allow allow banki banking ng trans transac acti tions ons to be conducted on the field. A low-cost solution, this became an effective delivery option for ICICI Bank’s micro-finance institution partners.



2007: 200 7: ICIC ICICII Bank Bank makes makes a USD USD 2 billi billion on threethree-tr tranc anche he inter internat nation ional al bon bond d offering, which becomes the largest bond offering by an Indian bank. o

Sangli Bank was amalgamated with ICICI Bank.

o

ICICI Bank raised Rs 20,000 crore (approx $5 billion) from domestic domestic and international markets through a follow-on public offer.

o

ICICI Bank’s GBP 350 million international bond offering marked the inaugural deal in the sterling market from an Indian issuer and also the largest deal in the sterling market from Asia.



2008: ICICI Bank enters USA, launches its first branch in New York o

ICICI Bank enters Germany, opens its first branch in Frankfurt

o

ICICI ICICI Bank launche launched d iMobile iMobile,, a breakthr breakthrough ough innovati innovation on in banking banking where practically practically all Internet banking transactions can now be done easily on the mobile phone.

4.5 ICICI Bank offers the following services services to its customers: 1. Personal Banking:





Deposits



Loans



Cards



Investments



Insurance



Demat services



Wealth management



Mobile banking



Internet banking

A. Accoun Accountt & Depo Deposit sit ICICI Bank has designed a gamut of accounts and deposits to cater to your unique banking needs. Add this to our extensive branch & ATM network and facilities like mobile, phone, internet and doorstep banking, and experience banking at its best. a) Current Account ICIC ICICII Curr Current ent Bank Bank Accou Account nt has the the facil facilit ity y of unlim unlimit ited ed cash cash deposi depositt and cash cash withdrawal withdrawal and comes with an unlimited cheque book facility. This account of the ICICI bank is suitable for: Stockiest or businessmen, partnership firms or joint stock companies, public corporations or public authorities etc. ICICI Bank offers you a suite of current account products that meet all your banking requirements, these are.



Standard Current Account: Minimum Balance Rs. 10,000 (QAB) Classic current Account: Minimum Balance Rs. 25,000 (QAB) Premium Current Account: Minimum Balance Rs. 50,000 (QAB) Gold Current Account: Minimum Balance Rs. 1,00,000 (QAB) Gold Plus Current Account: Minimum Balance Rs. 3,00,000 (QAB) Platinum Current Account: Minimum Balance Rs. 5,00,000 (QAB)

*QAB - Quarterly Average Balance Benefits of current account:

*Unlimited Withdrawal and Deposit * Unlimited Cheque book * Demand Drafts and Pay orders * Funds Transfer ( Local or Anywhere) * Collection of Cheques/ Drafts * Statements, Advices, Daily statement by e-mail * Cash withdrawal and Deposits * Call center * Internet Banking * Multicity Cheque payment facility at over 155 centers * Anywhere Banking facility * Doorstep Banking – Pickup and delivery of Currency / Cheque * Mobile Banking b) Savi Saving ng Acc Accou ount nt

Minimum average quarterly Balance Metro and Urban - Rs.10,000 Semi-urban- Rs.5,000, Rural - Rs.2,000 Interest Rate: 3.5 %p.a.



B. Loan Loanss

ICICI Bank offers wide variety of Loans Products to suit your requirements. Coupled with convenience of networked branches/ATMs and facility of E-channels like Internet and Mobile Banking, ICICI Bank brings banking at your doorstep. Select any of our loan product and provide your details online and our representative will contact you for getting loans. a) Home Loan

ICICI Bank Home Loans, offer unbeatable benefits to ensure that you get the best deal without any hassles .As one of the leading home loan provider, ICICI Bank understands how special building a new home is for you and our Home Loan help you lay the foundation for your dream home. ICICI offers you the most convenient home loan plans to suit your needs. With so many attractive features in every type of home loan we offer, creating the home you always wanted is no longer a distant dream. Some of our key benefits are: •

Guidance throughout the process.

•

Home loan amounts suited to your needs.

•

Home Loan tenure upto 20 years.

•

Simplified documentation.

•

Doorstep delivery of home loan papers.

•

Sanction approval without having selected a property.

•

Free Personal Accident Insurance.

•

Insurance options for your home loan at attractive premium.



b) Car Loan

Turn your dream into reality. Own that new car you have always desired, with a little help from us. ICICI offer loans up to 90% of the ex-showroom price of the car. Our interest rates would pleasantly surprise you. What's more, you can take up to 5 years to repay the loan. Worried about paperwork? paperwork? Relax. The process for getting a loan involves only a few simple steps and we will tailor-make the loan to suit your needs. Pick your choice: •

Loan on the Strength of Your Income: Submit income proofs as required and avail finance up to 90% of the ex-showroom price of the car.*

•

Car Loans with Fixed Interest Rates: ICICI Bank offers new car loans with fixed rate option only.

C. INSURANCE:

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank - one of India's foremost financial services companies-and companies-and Prudential plc - a leading international 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 reach includes 1,900 branches over 210,000 advisors; and 6 banc assurance partners. 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 Marge survey of 'Most Trusted Brands'. As we grow our distribution, product range and customer base, we continue to tirelessly tirelessly uphold our commitment to deliver world-class world-class financial financial solutions solutions to customers all over India. ICICI Prudential Life Insurance offers wide range of Insurance Plan. These are

Term Plan



Wealth Plan



Child Plan



Health Plan



Retirement Plan

a) Term Plan:

Term insurance is the simplest and most fundamental insurance product. Term insurance plans are designed to ensure that in the event of the policyholder’s death, the family gets the sum assured. Term life insurance ensures that your family receives a large lump sum amount, called the sum assured, in the unfortunate event of death of the policyholder. By offering this benefit at extremely competitive rates, Term insurance plans provide an opportunity to get the protection of insurance cover at extremely affordable prices. R V Institute of Management Page 78


b) Wealth Plan:

Wealth insurance ensures that you receive a lump sum amount of money at the maturity of the Policy. In the unfortunate event of death during the term of the policy, your family receives lump sum amount, called the Sum Assured. Thus it combines the benefits of protection and saving in a single instrument. As an individual who doesn’t desire the best from life? You would undoubtedly undoubtedly want to plan your finances such that you can achieve all your goals - a car, a beautiful home and of course, the comfort and contentment of your family. All of these goals are long term in nature. Wealth insurance plans have been designed to ensure that you can save for these long term goals along with the benefit of life cover and provide protection to your family.

c) Child Plan:

As a parent, you would not like to compromise your child's bright career, regardless of the rising cost of education. All you need is a saving’s plan that is designed to provide money at key educational milestones milestones and take care of your loved ones future even if you are not around. Education insurance offers you unique features which ensure that this objective is achieved and it helps in strengthening your child’s dreams. Education Education solutions solutions ensure comprehensive comprehensive financial financial planning for your child’s education/ developmental needs. In this you pay premium regularly or in a single lump sum and durin during g the the key educa educati tiona onall mile milesto stones nes of your your child child you you can withd withdraw raw the money money R V Institute of Management Page 79


partially. It offers financial protection to your child’s future in the unfortunate event of your death.

d) Health Plan:

Health insurance insures you and your family against against expenses arising due to a medical medical emergency and uncertainty of health such as a hospitalization or the onset of a critical illness. It prevents a medical emergency from becoming a financial one; it ensures your health care needs are taken care of without you having to dip into your existing savings or compromising your future goals. Designed to ensure that you and your family get the medical treatment whenever you need it. Secure your family now with our health plans.

e) Retirement Plan:

Retirement insurance ensures that you or your family members receive a regular pension amount post a retirement retirement date. You have the flexibility to choose the retirement date and the manner in which you receive the pension. ICICI pension plans are designed to ensure that your retirement retirement years truly become your golden years. They will provide provide you the financial security to pursue your unfulfilled unfulfilled dreams.



D. DEMAT SERVICE: ICICI bank provides its customers the Demat account or the online trading account to get easy saving and investment in the Indian stock market with easy dealings. ICICI bank provides the details of Demat account through SMS and Emails alerts. ICICI Demat account charges:

There is no amount necessary for opening the demat account in ICICI bank. These are valid on sub/ frequent broker charges and standard charges. Annual service fee is Rs 500 and for frequent/sub broker is Rs 1200 for ICICI demat account. An agreement is essential to make in a stamp paper of Rs 100. The ICICI demat account charges are Rs 0 for buying shares. The selling charges applicable are-0 trade on icicidirect.com. For instruction provided through branches-0.04% (standard charges) and 0.02% frequent/sub broker. and so and so.

NRI Banking: 

Money Transfer



Bank accounts



Investments



Property Solutions



Insurance



Loans

Business Banking:





Corporate net banking



Cash Management



Trade services

3.8 Awards & Recognitions:

2009 •

ICICI Bank won 2009 Brandon Hall Excellence in Learning Award

•

In the the Dome Domest stic ic Bank Bankin ing g Awar Awards ds of Fina Financ ncee Asia Asia Coun Countr try y Awar Awards ds for for Achie Achievem vement ent,, 200 2009 9 held held at Hongko Hongkong, ng, ICIC ICICII Bank Bank won won the the 'Best 'Best Fore Foreign ign Exchange Bank, India' and 'Best Trade Finance Bank, India'

2010 •

Ms Chanda Kochhar, Managing Director & CEO, conferred the Outstanding Woman Business Leader of the Year award by CNBC TV18

•

ICICI Bank awarded the most Tech-friendly Bank award by Business World

•

ICICI Bank received the 2010 World Finance UK award for:

a.

Excellence in Remittance Business, Worldwide

b.

Excellence in NRI Services, Worldwide

c.

Excellence in Private Banking Business, APAC Region

2011 •

Ms. Chanda Kochhar, Managing Managing Director & CEO, in the list of 25 most powerful professional women of the country , by India Today ICICI Bank has won the "Banking Technology Awards 2010" at The Indian Banks Association in the following categories:



•

"Best Financial Inclusion Initiative" (first prize)

Chapter 5 ANALYSIS AND INTREPRETATIO N



Age – Group

No. of Respondents

Percentage

18 - 2 5

20

40%

26 - 3 5

12

24%

36 - 4 5

10

20%

45 & Above

8

16%

Table No. 1:

Table showing Age group of Respondents of SBI customers.

Graph No. 1:

Graph showing Age group of Respondents.



40 35 30 25 20 Percentage 15

R P D N O E T S

10 5 0 18 - 25

26 -35

36-45

45 & Above

AGE-GR - GROUP

ANALYSIS: The graph shows most of the respondents are between the age group 18-25 years. Some respondents are between age group 26-36, 36-45 and some respondents are of age above 45 years of age. INTERPRETATION: From the graph it can be inferred that in SBI has customer from all most all age group. Younger age group people mostly prefer SBI, because of its excellent service, very less service charges, widely network coverage, etc. Most of the people have account in SBI because the above reasons.



Table No. 2:

Table showing the Income Level of Respondents.

Income Level (in Rs.)

No. of Respondents

Percentage

Below 1 Lakh

13

26 %

1 – 3 Lakhs

22

44 %

3 – 5 Lakhs

7

14 %

5 & Above

8

16 %

Graph No. 2:

Graph showing the Income Level of Respondents.



45 40 35 30 25 20

Percentage

D R P N O15 E T S 10 5 0 Below 1 Lakh

1 -3 Lakhs

3 -5 La Lakhs

5 & Above

INCOME INCOMELEVEL

ANALYSIS: The above graph shows that most of the respondents are from the income level Rs.1-3 lakh. Very few respondents are of income level Rs.3-5 lakhs and above 5 lakhs per annum. Some people are also there whose income is below 1 lakhs. INTERPRETATION: Every income level people prefer SBI, because of its services. Starting from a lower level of income person to a higher level income person prefer SBI, may be because of reasons like, we can open an account at a very lower deposit (i.e. starting from Rs.1000/for opening a savings bank account), easy deposits and withdraw also, very less charges for ATM service (i.e. around Rs. 50/- per annum),etc.



TABLE No. 3:

Table showing type of Account Respondents having.

Account

No. of Respondents

Percentage

Saving Account

20

40 %

Current Account

10

20 %

Fixed Account

16

32 %

NRI Account

1

Others

2% 3

Graph No. 3:

Graph showing type of Account Respondents having.


6%


40 35 30 25 20 Percentage

15 D R P N O E T S 10 5 0 Saving Account

Current Account

Fixed Account

NRI Account

Others

TYPEofAccount Account

ANALYSIS: Graph shows that majority of respondents i.e. 40% are having saving bank account in their bank. Some people are having fixed income account and some people are Current account holders. INTERPRETATION: It can be inferred that saving bank account holders are more because of its very good service. In savings bank account, customers customers can made deposits, which are liquefied, safe and gets moderate rate of interest. This is to facilitate the customers to save money, which can be utilized at later time, when the money is needed very badly. Some customers like Business persons are having Current account. This account is to help the customers to have both ATM and Debit card facility. The customers will be provided with a cheque book containing a minimum of 25 leaves to draw money, when required. No charges are applicable.



TABLE No. 4:

Table showing Respondents take Loan from SBI.

Types of Loan

No. Respondents

Percentage

Housing Loan

15

30 %

Personal Loan

12

24 %

Vehicle Loan

10

20 %

Education Loan

5

10 %

Others

8

16 %

GRAPH No. 4:

Graph showing Respondents take Loan from SBI.



30 25 20 15 Percentage 10

D R P N O E T S

5 0 Housing Loan

Personal Loan

Vehicle Loan

Education Loan

Others

TYPEOFLOAN

ANALYSIS: The above graph shows that most of the respondents have taken Housing loan and perso persona nall loan loan (i.e (i.e.. 30% respon responden dents ts have have take taken n hou housi sing ng loan loan and 24% have have taken taken personal loan). Vehicle loan is also taken from SBI , but it is not that much as other loans. Education loan has taken by 10% respondent only. INTERPRETATION: Availing loan from SBI is very easy when compared to other banks. That is the main reason of availing loan from SBI for different purposes. For an example if a person is having a plot in his name and want to build a house, if he/she want a loan from SBI then he can get a loan very easily and with a very less interest rate also. SBI provide Personal loan with a very less interest rate also. But very few respondents have taken Vehicle loan, may be for that other banks are giving very good facilities. R V Institute of Management Page 91


TABLE No. 5:

Table showing preference of Services by the Respondents:

Services

0

8

Less preferred 42

ATM services

36

14

0

Internet banking

25

17

8

Deamt Service

12

23

15

Mobile Banking

14

22

14

Core Banking

38

12

0

Insurance services


Most preferred

Moderate


GRAPH No. 5:

Graph showing preference of Services by the Respondents: 45 40 35 30 25 Most Preferred

20

Moderate

D R P N O15 E T S

LessPreferred Preferr ed

10 5 0 Insurance ATM Internet Demat Mobile Services Services Banking Services Banking

Core Banking

SERVICES

ANALYSIS: The graph shows most of the respondent preferred ATM service of SBI, core banking internet banking. Very less preference goes to Insurance service , Demat services, mobile banking, etc. INTERPRETATION: In Insurance sector, many insurance companies like LIC, GIC, etc. are the king of the market. And some other insurance companies like ICICI Lombard, HDFE Standard life, etc. are well positioned themselves in the mind of customers. That may be the reason of not preferring insurance services of SBI by the customers. ATM service of SBI is more preferred by the customers, because of its wide range network, available in many places, like in small towns and villages also. R V Institute of Management Page 93


Core banking service is a most important factor while doing transaction in banks. Core banking service of SBI is excellent and accepted by customers widely.

TABLE No. 6:

Table showing the services availed by the SBI customers through Internet banking. Services of Internet Banking

No. of Respondents

Percentage

Fund Transfer

5

10 %

Bills Payment

12

24 %

Online Trading

11

22 %

Ticket Booking

15

30 %

Others

7

14 %

Graph No. 6:

Graph showing the services availed by the SBI customers through Internet banking. R V Institute of Management Page 94


30 25 20 15 Percentage

10

D R P N O E T S

5 0 Fund Transfer

Bills Payment

Online Trading

Ticket Booking

Others

SERVICES VICESTHROUGHINTERNETBANKING BANKING

ANALYSIS: The above graph shows most of the SBI customers use their internet banking service for ticket booking, bill payment and online trading. But very few people use internet banking fund transfer and other purpose. INTERPRETATION: It can be inferred that most respondents are booking ticket through using internet banking of SBI, because of it’s a easy process and SBI are charge very less amount for booking ticket. Some customer like business man and employee are do online trading and make bills payment through internet banking because SBI charge very less amount for trading which are liquefied and safe. R V Institute of Management Page 95


Table No. 7:

Table showing reason to choose SBI bank services.

No. of Respondents

Percentage

Effective Customer Service

12

24 %

Wide Branch Network

15

30 %

Transaction Cost

7

14 %

Technology Used

8

16 %

Others

8

16 %

Graph No. 7:

Graph showing reason to choose SBI bank services. R V Institute of Management Page 96


ANALYSIS: The above graph shows most of the respondents saying that reason to choose SBI is they have wide branch network network 30% and they provide provide effective effective customer service24%. service24%. But very few customers satisfied with SBI transaction cost 14%. INTERPRETATION: By analyzing this graph, we can conclude that most of the people is influenced by the quick and speedy services provided by SBI bank because they have wide branch network in urban and rural area also, and most of the people influenced by the SBI provide effective customer services because people the SBI have lot of customer care executive in various city. If you make you call in any time they listen your problem and give salutation. R V Institute of Management Page 97


Table No. 8:

Table showing Age group of Respondents of ICICI bank customers.

A ge - G r o u p

No. of Respondents

Percentage

18 - 2 5

5

10%

26 - 3 5

29

58%

36 - 4 5

15

30%

45 & Above

1

2%

Graph No. 8: R V Institute of Management Page 98


Graph showing Age group of Respondents of ICICI bank customers.

60

50

40

30 Percentage

R P D N O20 E T S 10

0 18 -25

26 -35

36 -45

45 & Above

AGE-GR - GROUP

ANALYSIS: The graph shows most of the respondents are between the age group 26 -35 years. Some respondents respondents are between age group 36 -45, 18 -25 and very less respondents respondents are of above 45 years of age. INTERPRETATION: From the graph it can be inferred that in ICICI has customer from all most all age group. 26- 35 age group people mostly prefer ICICI, because of its excellent service, widely network coverage, and new technology used by the Bank, etc. Most of people have account in ICICI because the above reason.



Table No. 9:

Table showing the Income level of Respondents of ICICI bank.

Income Level

No. of Respondents

Percentage

Below 1 Lakh

2

4%

1 – 3 Lakhs

10

20 %

3 – 5 Lakhs

22

44 %

5 & A b ov e

16

32 %



Graph No.9:

Graph showing the Income level of Respondents of ICICI bank.

45 40 35 30 25 20

Percentage

R P D N O15 E T S 10 5 0 Below 1Lakh

1 -3 Lakhs

3 -5 Lakhs

5 & Ab Above

INCOME- LEVEL

ANALYSIS: The above graph shows that most of the respondents are from the income level Rs. 3- 5 lakhs. Very few respondents are of income level Rs. below 1 lakh and 1-3 lakhs. Some people also there whose income is above 5 lakhs per annum. INTERPRETATION: High income level people prefer ICICI, because of its services. Very few lower level income person prefer ICICI, may be because of reasons like, we can open an account in ICICI bank at high deposit (i.e. starting from Rs. 10000/- for opening a saving bank account), easy deposits and withdraw also, and less charges for ATM service (i.e. around 100/- per annum) etc.



Table No. 10:

Table showing type of account Respondents having.

Account

No. of Respondents

Percentage

Saving Account

12

24%

Current Account

25

50%

Fixed Account

8

16%

NRI Account Others

2

4% 3


6%


Graph No. 10:

Graph showing type of account Respondents having.

50 45 40 35 30 25 20

Percentage

D R P N O15 E T S 10 5 0 Saving Account

Current Account

Fixed Account

NRI Account

Others

TYPEOFACCOUNT

ANALYSIS: Graph shows that majority of respondents i.e. 50% are having current bank account in their bank. Some people are having Fixed income account and some people are saving account holders. INTERPRETATION: It can be inferred that current bank account holders are more because of its very good service. Current bank account help the customer to have both ATM and Debit card facility, facility, Unlimited Unlimited Withdrawal and deposit facility, unlimited unlimited cheque book and doorstep banking etc.



Some customers like employees are having saving account because of its very good service. In saving bank account, customers can made deposits, which are liquefied, safe and gets moderate rate of interest. interest. Some customers are having fixed income account this is to facilitate facilitate the customers to save money, which can be utilized at later time, when the money is needed very badly.

Table No. 11:

Table showing Respondents take Loan from ICICI bank.

Loan

No. of Respondents

Percentage

Housing Loan

14

28%

Personal Loan

8

16%

Vehicle Loan

22

44%

Education Loan

2

4%



Others

4

8%

Graph No. 11:

Graph showing Respondents take loan from ICICI bank.

45 40 35 30 25 20 Percentage

15 10

R D N O E T S

5 0 Housing Loan

Personal Loan

Vehicle Loan

Education Loan

Others

TYPEOFLOAN

ANALYSIS: The above graph shows that most of the respondents have taken Vehicle loan and housing loan (i.e. 44% respondents have taken vehicle loan and 28% have taken housing loan). Personal loan is also taken from ICICI bank and education loan has taken by 4% respondents only. INTERPRETATION:



Availing loan from ICICI bank is easy. This is the main reason of availing loan from ICICI for different purpose. For an example if a person want to a car on own name, if he/she want a loan from ICICI bank then get a loan very easily and with a very less interest rate also. ICICI provide housing loan with a interest rate also. But very few respondents have taken education loan, may be for that other bank are giving very good facilities.

Table No. 12:

Table showing preference of services by Respondents.

Service

Most preferred

Moderate

Less preferred

Insurance Service

12

10

28



Internet Banking

42

7

1

Mobile Banking

20

22

8

ATM Service

36

14

0

Demat Service

16

20

14

Core Banking

40

10

0

Graph No. 12:

Graph showing preference of services by Respondents.

45 40 35 30 25 20 Most preferred

R t d p15 o e n s

Moderate

10

Less Less preferred preferr ed

5 0

Service

ANALYSIS: The graph shows most of the respondents preferred Internet banking service, ATM service, Core banking service of ICICI bank. Very less preference goes to Insurance service and Mobile banking etc. INTERPRETATION: R V Institute of Management Page 107


Internet banking service of ICICI is more preferred by the customers, because of most respondents are either business man or employees and ICICI bank provide excellent service in this sector. Core banking service is a most important factor while doing transaction in banks. Core banking service of ICICI is good and accepted by customer. In Insurance sector, many insurance companies like LIC are king of the market some other other insur insuran ance ce compa companie niess like like HDFC HDFC standa standard rd life life,, Baja Bajajj Alli Allian ance ce etc. etc. are well well positioned positioned themselves in the mind of the customers. That may be reason of less preferred insurance services of ICICI by customers.

Table No. 13:

Table showing the services availed by the ICICI customers through Internet banking.

Services of Internet Banking

No. of Respondents

Percentage

Fund Transfer

13

26%



Bills Payment

12

24%

Online Trading

15

30%

Ticket Booking

6

12%

Others

4

8%

Graph No. 13:

Graph Table showing the services availed by the ICICI customers through Internet Banking.

30

25

20

15 Percentage

R t d p10 o e n s 5

0 Fund transfer

Bills Payment

Online Trading

Ticket Booking

Others

Serviceof InternetBanking

ANALYSIS: The above graph shows most of the ICICI bank customer use their internet banking service for online trading, fund transfer, bills payment and others purpose. But very few people use internet banking for ticket booking. INTERPRETATION: R V Institute of Management Page 109


It can be inferred that most respondents are online trading (30%),bills payment (24%), and fund transfer(26%) through using internet banking of ICICI, because of the ICICI provide excellent excellent service in this sector and charge charge less amount for online online trading other then, but few respondents are using booking ticket through internet banking because of the ICICI bank charged for this service few more amount other then.

Table No. 14:

Table showing reason to choose ICICI bank services.

Effective Customer Service

No. of Respondents

Percentage

17

34%



Wide Branch Network

10

20%

Transaction Cost

5

10%

Technology Used

12

24%

Others

6

12%

Graph No. 14:

Graph showing reason to choose ICICI bank services.

35 30 25 20 15

D R P N O10 E T S Percentagr

5 0

SERVICES

ANALYSIS: The above graph shows most of the respondents saying that reason to choose ICICI is they provide provide effective effective customer customer service34%, service34%, technology technology used by ICICI bank 24% very few customers satisfied with ICICI transaction cost 10%.


but


INTERPRETATION: By analyzing analyzing this graph, we can conclude that most of the people influenced influenced by the SBI provide provide effective effective custome customerr services services because because people people say that ICICI ICICI bank tag line line is KHAYAL KHAYAL AAPKA and the ICICI bank fulfill the requirement requirement of on his tag line because in the urban area the ICICI branch are open morning 10 am to 8 pm. And there staff members members behavior behavior to the custome customerr are very good, the ICICI have lot of customer customer care executive in various city. If you make you call in any time they listen your problem and give salutation.

Comparison between ICICI and SBI banks ICICI bank is bank is the largest private sector bank in India and the second largest commercial bank in India. It has branches all over India and even in smaller towns in South India after the takeover of Bank of Madurai. The bank also has foreign subsidiaries subsidiaries like ICICI R V Institute of Management Page 112


bank, Canada in Canada, Britain and Russia, representative offices in USA, China, UAE, Bangladesh, South Africa and branches in Bahrain, Singapore . •

It offers offers a plat platfor form m for online online share share tradi trading ng throu through gh ICIC ICICII Direc Directt and insurance services- ICICI Prudential. NRI services include money transfer through Money2India, which offer better foreign exchange rates for lower amounts compared to other services.

•

Like Like most most priv privat atee sect sector or bank banks, s, all all ICIC ICICII bank bank bran branch ches es in Indi Indiaa are are networked. You can access your account from any ICICI bank branch in India. Anyone can also deposit cash/local cheque in your account at any branch of ICICI bank.

•

Also they have very convenient bank timings and are open for 12 hours from 8.00 a.m to 8 p.m from (Monday to Saturday).

•

You can deposit cash in your own account at the ATM, for depositing cash into a third party account, you have to visit the branch.

•

Since ICICI bank was established after 1991 it offers online banking where you can check the balance in your account any time. The interface interface for current accounts is much better and user friendly compared to that for their saving account.

•

ICICI charged for opening a saving account min. amount Rs 5000 and for current account min. amount Rs 10000. ICICI give interest rate for saving account 3.25% per annum and for fixed deposit its depending to duration of time and amount.

•

For savings account, up to 3 cash deposits per quarter (3 months) at the non base branch can be made at no cost. For additional cash deposits, the bank charg charges es the recipi recipient ent Rs 100 (+ servic servicee tax) tax) per deposi deposit. t. For For outst outstat ation ion cheques, ICICI bank charges a minimum of Rs 30 (+ service tax) for savings accounts.

•

They They have discontin discontinued ued the auto auto sweep-i sweep-in n facilit facility, y, where where the amount in saving savingss accoun accounts ts was was autom automat atica icall lly y conver converte ted d into into a fixed fixed deposi deposit, t, if it exceeded Rs 15000. With the decline in interest rates for loans, providing providing this facility is no longer profitable for the bank.



•

ICICI bank provides a large option in Insurance sector. They have varity of product to the customer.

•

ICICI banks offers mobile banking, internet banking services, in this segment there are no any bank provide better service compare to ICICI.

SBI is the largest public sector bank in India :•

SBI has wide network branches and ATMs all over India. SBI has one of the largest network of ATMs in the Asia Pacific region. Many branches of State Bank of India are computerized.

•

SBI timings vary according to location, for example the Jaynagar, Bangalore branch of State Bank of India is open between 10.15 am to 3pm (TuesdaySunday)

•

The minimum amount charge to opening a saving account in SBI bank is Rs 1000 and for current account they charge min. amount 5000. SBI give interest rate for saving account 3.25% per annum and for fixed deposit its depending to duration of time and amount.

•

State Bank of India has varity of product and services to his/her customer likeloan, Insurance; demat, Mobile banking, Internet banking, Core banking, etc.

•

In loan segment SBI charge low interest rate compare to ICICI bank.

•

SBI debit cum visa card allows booking of railways tickets, air tickets, movies ticket and parching more through internet banking and swap the card. In booking railways tickets SBI charge 10 rupees per transaction. State Bank of India is the largest issuer of debit cards (Maestro) in India

•

State Bank customers who have to wait a long time to process a bank transaction can register their complaint through a touch screen device for customer feedback service at the branch. The information is recorded and processed in the central server.

•

All government taxes like income tax, sales tax, service tax can be paid at any branch of SBI.



•

State Bank of India has 52 foreign offices in 34 countries including Australia, UK, USA, Canada, Bahrain, Nigeria, Bangladesh, Nepal, and Bhutan Sri Lanka. These are useful for foreign trade transactions like opening of Letter of Credit.



Chapter 6 FINDINGS, CONCLUSION AND Suggestions

FINDINGS 

30% respondents to choose the SBI bank is because the bank is providing wide branch network to the customers.





24% respondents are saying the reason to choose the services of the SBI bank is because they are good in effective customer service.



The income income level level of the responde respondents nts who are having an account account in SBI bank falling under the income level of Rs. 1 – 3 Lakhs Yearly.

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The age group of 18yrs – 25yrs respondents mostly is having an account in SBI bank.



The both gender are equally having an account in SBI bank.



Many of respondents to choose saving account in SBI bank.



Most of respondents taking Home loan through SBI bank, because they satisfied with interest rate charged by SBI.



30% of respondents are choosing Unit linked insurance plan in SBI.



Many of the respondents are not aware of the many services rendered by the SBI bank. The few are deposit of cash in ATM, request for cheque book in ATM, end of the day balance in mobile, etc.



Sum Of the respondents to choose the ICICI bank is because the bank is more reliable to the customers.



Many of the respondents are saying the reason to choose the services of the ICICI bank is because they are good in efficient efficient customer service and efficient complaint handling.



The income level of the respondents who are having an account in ICICI bank falling under the income level of Rs. 3 – 5 Lakhs Yearly.



The age group of 25yrs - 35yrs respondents mostly is having an account in ICICI bank.



The male gender is mostly having an account in ICICI bank.



Many of the respondents are not aware of the many services rendered by the ICICI bank. The few are deposit of cash in ATM, request for cheque book in ATM, end of the day balance in mobile, etc.

CONCLUSIONS



The customers now days are not only exposed of what type of service is being provided by banks in India but in the world as a whole. They expect much more than what is actually being provided. So the now coming days SBI and ICICI bank have to provide and cater to all the needs of the customers otherwise it is difficult to survive in the competition coming up. They not only expect the safety of money but also best ways to invest that money which need to be fulfilled. SBI and ICICI bank need to have a better outlook towards to actually what what custo custome mers rs are requir requiring ing.. En Entri tries es of the privat privatee sector sector banks banks have have made made the the competition tougher. If a bank is not functioning properly it is being closed. So it is difficult to face these types of conditions. Here a simple philosophy can work that customers are God and we need to follow this to survive and serve better. The SBI and ICICI bank are poised for explosive growth. In this, scenario, it is imperative that banks adopt technology at an aggressive Pace, if they wish to remain compe competit titive ive.. Mo Money ney make makess a case case for these these banks banks to outsou outsource rce thei theirr techn technolo ology gy infrastructure requirement, thus enabling early adoption and increased efficiencies.

In the prevailing scenario, a number of banks have adopt a new development development strategy of infrastructure infrastructure outsourcing, to lower the cost of service channels. As a result, other banks too will need to align their reinvented reinvented business models. The required changes at both the business and technology levels are enormous. In a highly competitive banking market, early adopters are profiting from increased efficiencies.

SUGGESTIONS R V Institute of Management Page 118




Banks should obey the RBI norms and provide facilities as per the norms, which are not being followed by these banks. While the customer must be given prompt services and the bank officer should not have any fear on mind to provide the facilities as per RBI norms to the units going sick.



Banks should increase the interest rate of saving account.

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Banks should provide loan at the lower interest rate and education loans should be given with ease without much documentation. All the banks must provide loans against shares.



Fair dealing with the customers. More contribution from the employee of the ban bank. k. Th Thee staf stafff Shou Should ld be co-o co-ope pera rati tive ve,, frie friend ndly ly and and must must be capa capabl blee of understanding the problems of customers



Internet banking facility must be made available to customer free of cost in both banks.



Prom Prompt pt deali dealing ng with with perma permanen nentt custo custome mers rs and speedy speedy trans transact actio ion n with without out harassing the customers.

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Each section of both banks should be computerized even in rural areas also.



Real time gross settlement can play a very important role.

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More ATM coverage should be provided for the convenience of the customers.

 

No limit on cash withdrawals on ATM cards. The bank should bring out new schemes at time-to-time so that more people can be attracted. Even some gifts and prizes may be offered to the customers for their retention.

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24 hours banking should be induced so as to facilitate the customers customers who may not have a free time in the daytime. It will help in facing the competition more effectively.

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The charge for saving account opening in ICICI bank is high, so they should also be reduced.



Customers generally complain that full knowledge is not granted to them. Thus the bank should properly disclose the features of the product and services to the customers. Moreover door to door services can also be introduced by SBI and ICICI bank.



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The need of the customer should properly be understood so that customer feels satisfied. The relationship value should be maintained.

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The branch branch should should promote promote cooperat cooperation ion and coordina coordination tion among among employ employees ees which help them in efficient working.



Maintenance of proper hierarchy should be done. A good hierarchy set up can ensure better results within the bank.

Banking sector is improving by leaps but still it needs to be improved. Proper and efficient relationship staffs having knowledge for one stop banking, customer friendly atmosphere, and better rate of interest are need of the hour.



BIBLIOGRAPHY



BOOKS: Kothari C.R. (1990) Research Methodology: Method and Techniques ; Wishva



Prakashan, New Delhi. 

Bodie.Z, Kane.A & Mracus.J : Essentials of Investments .



Prof. E Gordon & Dr. K. Natrajan “Banking Theory Law and Practice ”.



“Indian financial System & Commercial Banking” by Khan Masood Ahmed



“Banking in India” by P.N.Varshney

MAGAZINS: 

Business World



Business Today



The Smart Manager

WEBSITES: 

www.centurionbop.co



www.statebankofindia.com



www.icicibank.com



www.rbi.org.in



www.iba.org.in



www.knowledgestom.com



ANNEXURE



QUESTIONNAIRE FOR “A Comparative study of customer services provided by SBI and ICICI bank in Bangalore” Rakesh sh Ku Kuma marr, student of RV RV Inst Instiitute tute of Dear Dear Sir/ Sir/Ma Mada dam, m, I Rake Management Bang Bangalo alore re do doing ing my MBA proj roject on a stud tudy on “A Comparative study of customer services provided by SBI and ICICI bank in Bangalore”. This questionnaire is to assess your view and opinion

about Customer Services provided by these banks. Your responses will be maintained in strictly confidence and this will be used for ACADEMIC PURPOSE ONLY.

Personal Details:A) NAME: B) ADDRESS: C) GENDER: D) AGE GROUP:

MALE

FEMALE

a) 18- 25

b) 25- 35

c) 35- 40 E) Occupation:

d) Above 40

a) Government Employee c) Professional

F) ANNUAL INCOME : a) BELOW 1 LAKH c) 3-5 LAKHS

b) Business Man d) Others b) 1-3 LAKHS d) ABOVE 5

LAKHS 1) Which type of account do you hold in the bank? a) Saving account

b) current account

d) NRI account

e) others

c) Fixed account

2) What are the interest rates provided by your bank on deposit? a) 3%-5% d) above 9%


b) 5%-7%

c) 7%-9%


3) Are you satisfied with the interest rate provided by the bank? a) Yes

b) Friends

If no what is the reason 4) Have you taken any loan from bank? a) Yes

b) No

5) If yes, then for what purpose? a) Housing loan

b) Personal loan

c) Vehicle loan

d) Education loan

e) other

6) What is the interest rate charged by your bank on loan? a) 9%-10%

b) 10%-11%

d) 12%-13%

e) above 13%

c) 11%-12%

7) Are you satisfied with the interest rate charged by the bank? a) Yes

b) No

If No, what is the reason 8) Which services are used by you through an ATM? a) Cash withdrawal

b) Cash deposit

d) A/c transfers

c) Bills payment

f) others

9) What are the problem you have uncounted while using an ATM? a) The max. Withdraw amount is limit b) The No. of ATM is not enough c) ATM not able to print slip when demanded d) ATM working too slowly f) No any Problem 10) Which services are provided through Mobile banking by your bank? a) Bills payment alerts

b) Know the cheque details

d) Booking ticket others

e) Mobile recharge


c) Sms

f)


11) Is your bank providing Insurance service? a) Yes

b) No

12) If yes then which type of Insurance plan they provided? a) Protection Plan

b) Saving Plan

c) child

e) Unit Linked Plan

f)

Plan d) Pension Plan others

13) Which services are provided by Internet banking by your bank? a) Fund transfer Online trading d) Ticket booking

b) Bills payment

c)

e) others

14) Is your bank provides stock trading service? a) Yes

b) No

15) What are the demat a/c brokerage fee charged in a month by your bank? a) 0.15%-0.25%

b) 0.25%-0.35%

c) 0.35%-0.45%

d) above 0.45%

16) Please rate the following services provided by your bank as per your preference.

More preferred

Moderate

Less preferred

Insurance Service ATM Service Internet Banking Demat Service Mobile Banking Core Banking 17) When you think of your bank what comes first in your mind? a) Customer Service



b) Personalized Service c) Wide Branch Network Others pls. specify 18) Suggestions if any, -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Thank You for spending your precious time in giving your responses


A Comparative Study of Customer Services Provided by ICICI and SBI Banks in Bangalore

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