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INDEX

EXECUTIVE SUMMARY

REVIEW

OBJECTIVE OF STUDY

HYPOTHESIS

METHODOLOGY

6
7

INTRODUCTION ON ICICI AND HDFC

BANK
HISTORY

OBJECTIVES

FEATURES

10

FUNCTIONS

11

GOALS

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ORGANIZATIONAL STRUCTURE

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SWOT ANALYSIS OF ICICI AND HDFC

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15

SERVICES PROVIDED BY ICICI AND

HDFC
DIFFERENCE BETWEEN ICICI AND HDFC

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QUESTIONNAIRE

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CONCLUSION
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BIBLIOGRAPHY

EXECUTIVE SUMMARY
HDFC and ICICI are major financial and banking
service organizations in India. HDFC stands for
Housing Development Finance Corporation and
ICICI is Industrial Credit and Investment
Corporation of India. It was in 1990s that the
Government of India decided upon a policy of
liberalization under the leadership of Narsimha
Rao. This policy allowed private banks to become
established in India although small in number. The
first among these banks was Global Trust Bank
after which various others like Axis Bank, HDFC
Bank, and ICICI Bank emerged. This gave a boost
to the banking sector in India.
HDFC was established in 1994 by Indias largest
housing finance company housing development
finance corporation Ltd. In Jan 1995, it started
operating as scheduled commercial bank. HDFC
Bank merged with Times Bank Ltd in2000 and this
was the first private bank merger in India. HDFC
also acquired centurion Bank of Punjab in 2008.
ICICI Bank was basically setup with the objective of
providing middle and long term financing to
2

business in India. Some Indian industries,

government of India and World Bank took
advantage of this initiative.

REVIEW
Moody's Analytics is a subsidiary of Moody's
Corporation established in 2007to focus on nonrating activities, separate from Moody's Investors
Service. It performs economic research related to
credit analysis, performance management,
financial modeling, structured analysis and
financial risk management. Moody's Analytics also
offers software and consulting services, including
proprietary economic models and software tools, as
well as professional training for the financial
services sector, particularly risk management
accreditation. The company also provides
quantitative analysis and credit risk management
tools.

Moody's to review ICICI Bank, HDFC

Bank for downgrade in line with
sovereign rating
3

Global credit rating agency Moody's Investors

Service Monday said that it has placed India's three
major private sector lenders ICICI Bank, HDFC Bank
and Axis Bank under review for a downgrade,
making its intentions clear about rating lenders in
line with the sovereign rating of the nations in
which they are based.
"Moody's expects to position the standalone credit
assessments of most banks globally at (or below)
the rating of the sovereign where the bank is
domiciled, "Moody's said in statement, adding that
the review is expected to be concluded in three
months.
The standalone credit assessment of ICICI Bank,
HDFC Bank and Axis Bank is currently positioned
above the country's sovereign debt rating, Moody's
said, just a couple of days after these lenders were
stripped of their 'stable' outlook by another ratings
firm Standard & Poor's (S&P).

OBJECTIVE OF STUDY
To study the market shares in banking sector of
ICICI & HDFC.
To study the customer satisfaction with ICICI &
HDFC.
4

To analyze the decision making process of the

customer.
To study the customer perception about ICICI &
HDFC.

HYPOTHESIS
The HDFC plan is more preferable to old age group
people.
HDFC is unit link pension plan is able to give
returns compared to that of companies because of
lower fund management charges.
HDFC and ICICI investment is very convenient to
customer.

METHODOLOGY
The study was conducted by the means of personal
interview with respondents and the information
given by them were directly recorded on
questionnaire.
For the purpose of analyzing the data it is
necessary to collect the vital information. There are
two types of data, this are Primary Data
Secondary data
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PRIMARY DATA:Primary data is fresh data. This data is collected

from books, internet and direct questionnaire.
The data is collected from questionnaire. The
questionnaire is filled from customer through
direct interviewing them.
SECONDARY DATA:Secondary data is collected from magazines,
newspaper, etc. EG; social networking sites, books,
newspaper, etc.

INTRODUCTION ON ICICI AND HDFC

BANK
Banking is the backbone of a modern economy.
Health of banking industry is one of the most
important pre-conditions for sustained economic
progress of any country. The world of banking has
assumed a new dimension at the dawn of the 21st
century with the advent of tech banking, thereby
lending the industry a stamp of universality. In
general, banking may be classified as retail and
corporate banking. Retail banking, which is
designed to meet the requirements of individual
customers and encourage their savings, includes
payment of utility bills, consumer loans, credit
cards, checking account balances, ATMs,
transferring funds between accounts and the like.
Corporate banking, on the other hand, caters to
the needs of corporate customers like bills
discounting, opening letters of credit and
managing cash.
ICICI Bank Ltd. is an Indian diversified financial
services company headquartered in Mumbai,
Maharashtra. It is the second largest bank in India
by assets and third largest by market
capitalization. It offers a wide range of banking
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products and financial services to corporate and

retail customers through a variety of delivery
channels and through its specialized subsidiaries in
the areas of investment banking, life and non-life
insurance, venture capital and asset management.
HDFC Bank was incorporated in Aug. 1994 and
promoted by Housing Development Finance
Corporation Limited (HDFC) India's premier housing
finance company which also enjoys an impeccable
track record in India as well as in international
markets.

ICICI
ICICI (INDUSTRIAL CREDIT AND INVESTMENT
CORPORATION OFINDIA) Bank Ltd. is an Indian
diversified financial services company
headquartered in Mumbai, Maharashtra. It is the
second largest bank in India by assets and third
largest by market capitalization. It 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 in the areas of investment banking, life
and non-life insurance, venture capital and asset
management. The Bank has a network of 2,575

branches and 8,003 ATM's in India, and has a

presence in 19 countries, including India.
ICICI Bank is one of the Big Four banks of India,
along with State Bank of India, Punjab National
Bank and HDFC Bankits main competitors.
ICICI Bank is India's second-largest bank with total
assets of Rs.3,663.74billion (US$ 76 billion) at
September 30, 2009 and profit after tax
Rs.19.18billion (US$ 398.8 million) for the half year
ended September 30, 2009.TheBank has a network
of 1,568 branches and about 4,883 ATMs in India
and presence in 18 countries. ICICI Bank offers a
wide range of banking products and financial
services to corporate and retail customers through
a variety of delivery channels and through its
specialized subsidiaries and affiliates in the areas
of investment banking, life and non-life insurance,
venture capital and asset management. 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.

HDFC
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HDFC Bank was incorporated in Aug. 1994 and

promoted by Housing Development Finance
Corporation Limited (HDFC) India's premier housing
finance company which also enjoys an impeccable
track record in India as well as in international
markets. HDFC was amongst the first to receive an
'in principle' approval from the Reserve Bank of
India (RBI) to set up a bank in the private sector, as
part of the RBI's liberalization of the Indian Banking
Industry. HDFC Bank concentrates in four areas
-corporate banking, treasury management,
custodial services and retail banking. It has entered
the banking consortia of over 50 corporates for
providing working capital finance, trade services,
corporate finance and merchant banking. . HDFC
bank has become the first private sector bank to
be authorized by the Central Board of Direct Taxes
(CBDT) as well as the RBI to accept direct taxes,
commencing April012001. The taxes will be
accepted at specified branches of the bank. Also it
has announced a strategic tie-up with a Bangalorebased business solutions software developer Tally
Solutions PVT (TSPL) for developing and offering
products and services facilitating on-line
accounting and banking services to SMEs (Small
and Medium Enterprises).In 2001-02 the bank was
listed on the New York Stock Exchange in the form
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of ADS. Each ADS represents 3 equity shares.

Consequent to the issue, the paid up capital of the
Bank has increased by Rs.37.42 Corers.

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HISTORY
ICICI
ICICI Bank was originally promoted in 1994 by ICICI
Limited, an Indian financial institution, and was its
wholly-owned subsidiary. ICICI's share holding 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 investors in fiscal 2001 and fiscal
2002. ICICI was formed in1955at 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 longterm 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, both directly and through a number of
subsidiaries and affiliates like ICICI Bank. In1999,
ICICI become the first Indian company and the first
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bank or financial institution from non-Japan Asia to

be listed on the NYSE.

HDFC
HDFC Bank was incorporated in 1994 by Housing
Development Finance Corporation Limited (HDFC),
India's largest housing finance company. It was
among the first companies to receive an 'in
principle' approval from the Reserve Bank of India
(RBI) to set up a bank in the private sector. The
Bank started operations as a scheduled
commercial bank in January 1995 under the RBI's
liberalization policies. Times Bank Limited (owned
by Bennett, Coleman & Co. / Times Group) was
merged with HDFC Bank Ltd., in 2000. This was the
first merger of two private banks in India.
Shareholders of Times Bank received 1share of
HDFC Bank for every 5.75 shares of Times Bank. In
2008 HDFC Bank acquired Centurion Bank of
Punjab taking its total branches to more than
1,000. The amalgamated bank emerged with a
base of about Rs.1,22,000 corers and net advances
of about Rs.89,000 corers. The balance sheet size
of the combined entity is more than Rs.1,63,000
corers.
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OBJECTIVES, FEATURES, FUNCTIONS

AND GOAL

ICICI
Objectives of the ICICI are:
to assist in the creation, expansion and
modernization of private concerns;
to encourage the participation of internal and
external capital in the private concerns;
to encourage private ownership of industrial
investment.

The functions of the ICICIIt provides long-term and medium-term loans in

rupees and foreign currencies.
It participates in the equity capital of the
industrial concerns.
It underwrites new issues of shares and
debentures.
It guarantees loans raised by private concerns
from other sources.

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It provides technical, managerial and

administrative assistance to industrial concerns.

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EXECUTIVE SUMMARY

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