Management Thesis - II

Final Report

On

A Comparative study of customer services in ICICI and SBI.

Submitted by
M.J.VIDHYAA
II YEAR MBA
INC KEELKATTALAI

Under the Guidance of

DR.J.GAYATRI
FACULTY GUIDE
INC KEELKATTALAI

ICFAI National college, KEELKATTALAI

(Certificate from Faculty Supervisor)

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 Table of contents

Chapter 1: Introduction 07 - 33

1.1 Overview of banking Industry 7

1.2 Company Profile 13
1.3 Research objective 31
1.4 Review of literature 31
1.5 Key Words 32

Chapter 2: Research Methodology 34 – 37

2.1 Sampling Design 35

2.2 Pilot Study 36
2.3 Research Methodology 37
2.4 Limitations of the Study 37

Chapter 3: Data Analysis and Interpretation 38 - 81

Chapter 4: Findings, Recommendations and Conclusion 82 - 85

Chapter 5: Appendices 86 - 91

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 ACKNOWLEDGEMENT

I am grateful to thank our Campus Head MR.R.Srinivasan for giving me this great
opportunity to do my project.

I also extent my thanks to.Dr.J.Gayatri, faculty guide who has given me moral
support to do my project work.

I also extend my thankfulness to my beloved parents and friends for their

continuous encouragement at every moment.

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 DECLARATION

I here by declare that the project entitled “A Comparative study of

customer services in ICICI and SBI” has been completed by me. I assure
that this project is unique and has not been reproduced or copied from any other
soures.

(M.J.VIDHYAA)
(7NBCT011)

Faculty Guide

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INTRODUCTION

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1.1 OVERVIEW OF THE BANKING INDUSTRY:
Ba
nking in India originated in the last decades of the 18th century. The oldest bank in
existence in India is the State Bank of India, a government-owned bank that traces
its origins back to June 1806 and that is the largest commercial bank in the country.
Central banking is the responsibility of the Reserve Bank of India, which in 1935
formally took over these responsibilities from the then Imperial Bank of India,
relegating 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, India has 88 scheduled commercial banks (SCBs) - 27 public sector

banks (that is with the Government of India holding a stake), 29 private banks
(these do not 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. 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. The first banks
were The General Bank of India, which started in 1786, and the Bank of
Hindustan, 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 in June 1806,

6
which almost immediately became the Bank of Bengal. This was one of the three
presidency banks, the other two being 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 form 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 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 in Calcutta, in the 1860s. The
Comptoire d'Escompte de Paris opened a 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, the Indian economy was passing through a
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

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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 under capitalized and lacked the experience and maturity to compete with
the presidency and exchange banks. This segmentation let Lord Curzon to observe,
"In respect of banking it seems we are behind the times. We are like some old
fashioned sailing ship, divided by solid 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,
Corporation Bank, Indian Bank, Bank of Baroda, Canara Bank and Central Bank of
India.The fervour 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 nationalised 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

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World 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:

Year Number of banks Authorized capital Paid-up Capital

s that failed (Rs. Lakhs) (Rs. Lakhs)

1913 12 274 35

1914 42 710 109

1915 11 56 5

1916 13 231 4

1917 9 76 25

1918 7 209 1

Post-independence:
The partition of India in 1947 adversely impacted the economies of Punjab and
West Bengal, paralyzing banking activities for months. India's independence
marked the end of a regime of the Laissez-faire for the Indian banking. The

9
Government of India initiated measures to play an active role in the economic life
of the nation, and the Industrial Policy Resolution adopted by the government in
1948 envisaged a mixed 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 1948, the Reserve Bank of India, India's central banking authority, was
nationalized, and it became an institution owned by the Government of India.
In 1949, the Banking Regulation Act was enacted which 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, and no two banks
could have common directors.

However, despite these provisions, control and regulations, banks in India except
the State Bank of India, continued to be owned and operated by private persons.
This changed with 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. At the same time, it has emerged
as a large employer, and a debate has ensued about the possibility to nationalize the
banking industry. Indira 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, 1969. Jayaprakash Narayan, a national leader of

10
India, described the step as a "masterstroke of 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
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. With the second dose of nationalization, the GOI controlled
around 91% of the banking business of India. Later on, in the year 1993, the
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.

Liberalization:
In the early 1990s, the then Narsimha Rao government embarked on a 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 generation banks to be set up), which later amalgamated with Oriental
Bank of Commerce, UTI Bank(now re-named as Axis Bank), ICICI Bank and
HDFC Bank. This move, along with the rapid growth in the economy of 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

11
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 used to the 4-6-4 method (Borrow at 4%;Lend at 6%;Go home at 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 (2007), banking in India is generally fairly mature in terms of supply,

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 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 time-
especially in its services sector-the demand for banking services, especially retail
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 Pincus to increase its
stake in Kotak Mahindra Bank (a private sector bank) to 10%. This is the first time

12
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
aggresive 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 borrowers to suicide.

1.2 Company Profile of SBI:

State Bank of India (SBI) is India's largest commercial bank. SBI has a vast
domestic network of over 9000 branches (approximately 14% of all bank branches)
and commands one-fifth of deposits and loans of all scheduled commercial banks

13
in India.

The State Bank Group includes a network of eight banking subsidiaries and several
non-banking subsidiaries offering merchant banking services, fund management,
factoring services, primary dealership in government securities, credit cards and
insurance.

The eight banking subsidiaries are:

1-State Bank of Bikaner and Jaipur (SBBJ)

2-State Bank of Hyderabad (SBH)
3-State Bank of India (SBI)
4-State Bank of Indore (SBIR)
5-State Bank of Mysore (SBM)
6-State Bank of Patiala (SBP)
7-State Bank of Saurashtra (SBS)
8-State Bank of Travancore (SBT)

The origins of State Bank of India date back to 1806 when the Bank of Calcutta
(later called the Bank of Bengal) was established. In 1921, the Bank of Bengal and
two other Presidency banks (Bank of Madras and Bank of Bombay) were
amalgamated to form the Imperial Bank of India. In 1955, the controlling interest
in the Imperial Bank of India was acquired by the Reserve Bank of India and the
State Bank of India (SBI) came into existence by an act of Parliament as successor
to the Imperial Bank of India.

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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) (LSE: SBID) is the largest bank in India. If one measures
by the number of branch offices and employees, SBI is the largest bank in the
world. Established in 1806 as Bank of Calcutta, it is the oldest commercial bank in
the Indian subcontinent. SBI provides various domestic, international and NRI
products and services, through its vast network in India and overseas. With an asset
base of $126 billion and its reach, it is a regional banking behemoth. The
government nationalized the bank in 1955, with the Reserve Bank of India taking a
60% ownership stake. In recent years the bank has focused on three priorities, 1),
reducing its huge staff through Golden handshake schemes known as the Voluntary
Retirement Scheme, which saw many of its best and brightest defect to the private
sector, 2), computerizing its operations and 3), changing the attitude of its
employees (through an ambitious programme aptly named 'Parivartan' which
means change) as a large number of employees are very rude to customers.

Roots:
The State Bank of India traces its roots to the first decade of 19th century, when the
Bank of Calcutta, later renamed the Bank of Bengal, was established on 2 June
1806. The government amalgamated Bank of Bengal and two other Presidency

15
banks, namely, the Bank of Bombay (incorporated on 15 April 1840) and the Bank
of Madras on 27 January 1921, and named the reorganized banking entity the
Imperial Bank of India. All these Presidency banks had been incorporated as joint
stock companies, and were the result of the royal charters. The Imperial Bank of
India continued as a joint stock company. Until the establishment of a central bank
in India the Imperial Bank and its early predecessors served as India's central bank,
at least in terms of issuing the currency. The State Bank of India Act 1955, enacted
by the Parliament of India, authorized the Reserve Bank of India, which is the
central banking organization of India, to acquire a controlling interest in the
Imperial Bank of India, which was renamed the State Bank of India on 30 April
1955.

Timeline:
June 2, 1806: The Bank of Calcutta established.
January 2, 1809: This became the Bank of Bengal.
April 15, 1840: Bank of Bombay established.
July 1, 1843: Bank of Madras established.
1861: Paper Currency Act passed.
January 27, 1921: all three banks amalgamated to form Imperial Bank of India.
July 1, 1955: State Bank of India formed; becomes the first Indian bank to be.
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, 2007: The Government of India today acquired the entire Reserve
Bank of India (RBI) shareholding in State Bank of India (SBI), consisting of

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 over 314 million equity shares at a total amount of over 355 billion rupees.

Associate banks:
There are seven other associate banks that fall under SBI. They all use the "State
Bank of" name followed by the regional headquarters' name. These were originally
banks belonging to princely states before the government nationalized them in
1959. In tune with the first Five Year Plan, emphasizing the development of rural
India, the government integrated these banks with the State Bank of India to
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.

State Bank of Bikaner & Jaipur

State Bank of Hyderabad
State Bank of Indore
State Bank of Mysore
State Bank of Patiala
State Bank of Saurashtra
State Bank of Travancore

Foreign Offices:
State Bank of India is present in 32 countries, where it has 84 offices 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.

Foreign Branches:

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SBI has branches in these countries:

The Israeli branch

Australia
Bahrain
Bangladesh
Belgium
Canada
Dubai
France
Germany
Hong Kong
Israel
Japan
People's Republic of China
Republic of Maldives
Singapore
South Africa
Sri Lanka
Sultanate of Oman
The Bahamas
U.K.
U.S.A

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Subsidiaries and Joint Ventures:
In addition to the foreign branches above, SBI has these wholly owned
subsidiaries and joint ventures:

Nepal State Bank Limited

SBI Mauritius
Indian Ocean International Bank (Mauritius)
SBI Canada
SBI California

Growth:

Mumbai, India location.

State Bank of India has often acted as guarantor to the Indian Government, most
notably during Chandra Shekhar's tenure as Prime Minister of India. With more
than 9400 branches and a further 4000+ associate bank branches, the SBI has
extensive coverage. Following its arch-rival ICICI Bank, State Bank of India has
electronically networked most of its metropolitan, urban and semi-urban branches
under its Core Banking System (CBS), with over 4500 branches being incorporated
so far. The bank has the largest ATM network in the country having more than
5600 ATMs [1]. 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.

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Fortune Global 500 Ranking – 2007:
SBI debuted in the Fortune Global 500[2] at 498 in 2006. In 2007 it moved up to
495. As per fortune 500-2007 following are the data for SBI in $ million. Revenues
15,119.4. Profits 1,407.3. Assets 187,547.1. Stockholders' Equity 9,786.2

Group companies:

SBI Capital Markets Ltd

SBI Mutual Fund (A Trust)
SBI Factors and Commercial Services Ltd
SBI DFHI Ltd
SBI Cards and Payment Services Pvt Ltd
SBI Life Insurance Co. Ltd - Bancassurance (Life Insurance)
SBI Funds Management Pvt Ltd
SBI Canada
IT Initiatives:
According to PM Network (December 2006, Vol. 20, No. 12), State Bank of
India launched a project in 2002 to network more than 14,000 domestic and 70
foreign offices and branches. The first and the second phases of the project have
already been completed and the third phase is still in progress. As of December
2006, over 10,000 branches have been covered. The new infrastructure serves as
the bank's backbone, carrying all applications, such as the IP telephone network,
ATM network, Internet banking and internal e-mail. The new infrastructure has
enabled the bank to further grow its ATM network with plans to add another
3,000 by the end of 2007 raising the total number to 8,600. As of September 20,
2007 SBI has 7236 ATMs.

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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
State Bank Of India NRI Account

Banking Subsidiaries:

State Bank of Bikaner and Jaipur (SBBJ)

State Bank of Hyderabad (SBH)
State Bank of Indore (SBI)
State Bank of Mysore (SBM)
State Bank of Patiala (SBP)
State Bank of Saurashtra (SBS)
State Bank of Travancore (SBT)

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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)
SBI Factors and Commercial Services Pvt Ltd (SBI FACTORS)
SBI Cards & Payments Services Pvt. Ltd. (SBICPSL)

Joint ventures:

SBI Life Insurance Company Ltd (SBI LIFE).

Activities:

State Bank of India administrative structure is well equipped to oversee the large
network of branches in India and abroad. The State Bank of India 14 Local Head
Offices and 57 Zonal Offices are located at important cities spread throughout the
country. State Bank of India has 52 foreign offices in 34 countries across the globe.
The Corporate Accounts Group is a Strategic Business Unit of the Bank set up
exclusively to fulfill the specialized banking needs of top corporate in the country.

The main activities of are into -

Personal Banking.

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 NRI Services.
Agriculture.
International.
Corporate.
SME.
Domestic Treasury.

State Bank of India offers the following services to its customers -

Domestic Treasury.
SBI Vishwa Yatra Foreign Travel Card.
Broking Services
Revised Service Charge.
ATM Services.
Internet Banking.
E-Pay.
E-Rail.
RBIEFT.
Safe Deposit Lockers.
Gift Cheques.
MICR Codes.
Foreign Inward Remittances.

Moreover, State Bank of India has Colleges/Institutes/Training Centers that are the
seats of learning and research and development. It caters not only to the employees
of State Bank of India but also other banks/establishments in India and abroad.

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Performance:

SBI Bank India had Total Income of Rs 68376.83 crore for the financial year 2006
-07. State Bank of India has posted Net Income to the tune of Rs 6364.38 crore or
the financial year 2006 -07.

Organization:

State Bank of India is headed by Mr. Shri O. P. Bhatt, Chairman.

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Company Profile of ICICI:

ICICI Bank is India's second-largest bank with total assets of Rs. 3,849.70
billion (US$ 82 billion) at September 30, 2008 and profit after tax Rs. 17.42 billion
for the half year ended September 30, 2008. The Bank has a network of about
1,400 branches and 4,530 ATMs in India and presence in 18 countries. ICICI Bank
offers a wide range of banking products and financial services to corporate and
retail customers through a variety of delivery channels and through its specialized
subsidiaries and affiliates in the areas of investment banking, life and non-life
insurance, venture capital and asset management. The Bank currently has
subsidiaries in the United Kingdom, Russia and Canada, branches in United States,
Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International Finance
Centre and representative offices in United Arab Emirates, China, South Africa,
Bangladesh, Thailand, Malaysia and Indonesia. Our UK subsidiary has established
branches in Belgium and Germany.

ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and the
National Stock Exchange of India Limited and its American Depositary Receipts
(ADRs) are listed on the New York Stock Exchange (NYSE).
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 investors in

25
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, both directly and through a number of subsidiaries 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 through a large capital base and scale
of operations, seamless access to ICICI's strong corporate relationships built up
over five decades, entry into new business 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 subsidiaries, ICICI Personal Financial Services Limited and
ICICI 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

26
Gujarat at Ahmadabad in March 2002, and by the High Court of Judicature at
Mumbai and the Reserve Bank of India in April 2002. Consequent to the merger,
the ICICI group's financing and banking operations, both wholesale and retail, have
been integrated in a single entity.

ICICI Bank has formulated a Code of Business Conduct and Ethics for its directors
and employees.

ICICI Bank (BSE: ICICI) (formerly Industrial Credit and Investment Corporation
of India) is 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 2008), a network of over 1,399 branches, 22 regional offices and
49 regional processing centres, about 4,485 ATMs (at the end of September 2008),
and 24 million customers (at the end of July 2007). ICICI Bank offers a wide range
of banking products and financial services to corporate and retail customers
through a variety of delivery channels and specialised subsidiaries and affiliates in
the areas of investment banking, life and non-life insurance, venture capital and
asset management. (These data are dynamic.) ICICI Bank is also the largest issuer
of credit cards in India. [1]. ICICI Bank has got its equity shares listed on the stock
exchanges at Kolkata and Vadodara, Mumbai and the National Stock Exchange of
India Limited, and its ADRs on 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 representatives offices in 18 countries, including an
offshore unit in 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 and Sri Lanka, and

27
representative offices in Bangladesh, China, Malaysia, Indonesia, South Africa,
Thailand, the United Arab Emirates and USA. Overseas, the Bank is targeting the
NRI (Non-Resident Indian) population in particular.

ICICI reported a 1.15% rise in net profit to Rs. 1,014.21 crore on a 1.29% increase
in total income to Rs. 9,712.31 crore in Q2 September 2008 over Q2 September
2007.

1955: The 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.

ICICI emerges as the major source of foreign currency loans to Indian industry.
Besides funding from World Bank and other multi-lateral 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: ICICI made its first debenture issue for Rs.6 crore, which was
oversubscribed.

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

28
1972: ICICI becomes the second entity in India to set up merchant banking
services.

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

1977: ICICI sponsored the formation of Housing Development Finance

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.

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.

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

ICICI promotes Shipping Credit and Investment Company of India Limited.

The Corporation made a public issue of Swiss Franc 75 million in Switzerland, the
first public issue by any Indian entity in the Swiss Capital Market.

29
1987: ICICI signed a loan agreement for Sterling Pound 10 million with
Commonwealth Development Corporation (CDC), the 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.

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.

SCICI merged with ICICI Ltd.

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.

The name "The Industrial Credit and Investment Corporation of India Ltd"
changed to "ICICI Ltd." ICICI Ltd. announced the takeover of ITC Classic
Finance.

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

ICICI announced takeover of Anagram Finance.

30
1999 : ICICI launched retail finance - car loans, home loans and loans for
consumer durables.

ICICI becomes the first Indian company to get listed on the 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.

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.

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

ICICI Bank launched India’s first CDO (Collateralised Debt Obligation) Fund
named Indian Corporate Collateralised Debt Obligation Fund (ICCDO Fund).

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

inaugurated in Pune.

ICICI Bank launched Private Banking.

A 1,100-seat Call Centre for Customer Care by phone and e-mail was set up in
Hyderabad.
ICICI Bank Home Shoppe, the first-ever permanent aggregation and display of
housing projects in the county, launched in Pune.

31
ATM-on-Wheels, India’s first mobile ATM, launched in Mumbai.

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

ICICI Bank announced the setting up of its first-ever offshore branch in Singapore.
The first offshore banking unit (OBU) at SEEPZ Special Economic Zone, Mumbai,
was launched.
ICICI Bank’s representative office inaugurated in Dubai.
Representative office set up in China. ICICI Bank’s UK subsidiary launched.
India’s first ever "Visa Mini Credit Card", a credit card 43% smaller in dimensions
was launched. A subsidiary of ICICI Bank was set up in Canada. Temasek
Holdings acquired 5.2% stake in ICICI Bank.
ICICI Bank became the market leader in retail credit in India.

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

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

India’s first multi-branded credit card with HPCL and Airtel launched.
Kisan Loan Card and innovative, low-cost ATMs were launched in rural India.

ICICI Bank and CNBC TV 18 announced India’s first ever awards recognizing the
achievements of SMEs, a pioneering initiative to encourage the contribution of
Small and Medium Enterprises to the growth of the Indian economy. ICICI Bank
opened its 500th branch in India.

ICICI Bank introduced partnership model wherein ICICI Bank would forge an
alliance with existing micro finance institutions (MFIs). The MFI would undertake

32
the promotional role of identifying, training and promoting the micro-finance
clients and ICICI Bank would finance the clients directly on the recommendation
of the MFI.

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.

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.

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

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

Private Banking Masters 2005, a nationwide Golf tournament for high networth
clients of the Private Banking division launched. This event is the largest domestic
invitation amateur golf event conducted in India.

Becomes the first Indian company to make a simultaneous equity offering of $1.8
billion in India, the United States and Japan.

Acquired IvestitsionnoKreditny Bank of Russia.

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

33
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.

ICICI Bank subsidiary set up in Russia.

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

Representative offices opened in Thailand, Indonesia and Malaysia.

ICICI Bank became the largest retail player in the market to introduce a biometric
enabled smart card that allow banking transactions to be conducted on the field. A
low-cost solution, this became an effective delivery option for ICICI Bank’s micro-
finance institution partners.

Financial counseling centre Disha launched. Disha provides free credit counseling,
financial planning and debt management services.

Bhoomi puja conducted for a regional hub in Hyderabad, Andhra Pradesh.

2007: ICICI Bank makes a USD 2 billion three-tranche international bond offering,
which becomes the largest bond offering by an Indian bank.

Sangli Bank was amalgamated with ICICI Bank.

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

34
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.
Launched India’s first ever jewellery card in association with jewellery major
Gitanjali Group.

ICICI Bank became the first bank in India to launch a premium credit card -- The
Visa Signature Credit Card.

The foundation stone for a regional hub in Gandhinagar, Gujarat was laid.

ICICI Bank introduced SME Toolkit, an online resource centre, to help small and
medium enterprises start, finance and grow their business.

ICICI Bank signed a multi-tranche dual currency US$ 1.5 billion syndication loan
agreement in Singapore.

ICICI Bank became the first private bank in India to offer both floating and fixed
rate on car loans, commercial vehicles loans, construction equipment loans and
professional equipment loans.

In a first-of-its-kind, nation wide initiative to attract bright graduate students to

pursue a careers in banking, ICICI Bank launched the "Probationary Officer
Programme".Launched Bank@Home services for all savings and current account
customers residing in India

35
ICICI Bank Eurasia LLC inaugurated its first branch at St Petersburg, Russia.

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

ICICI Bank enters Germany, opens its first branch in Frankfurt.

ICICI Bank launched iMobile, a breakthrough innovation in banking where

practically all Internet banking transactions can now be done easily on the mobile
phone.

ICICI Bank concluded India's largest ever securitization transaction of a pool of

retail loan assets aggregating to Rs. 48.96 billion (equivalent of USD 1.21 billion)
in a multi-tranche issue backed by four different asset categories. It is also the
largest deal in Asia (ex-Japan) in 2008 till date and the second largest deal in Asia
(ex-Japan and Australia) since the beginning of 2007.

ICICI Bank launches ICICIACTIVE-Banking Interactive Service - along with

DISH TV, which will allow viewers to see information about the Bank's products
and services and contact details on their DISH TV screens.

ICICI Bank and British Airways launch a co-branded credit card, designed to earn
cardholders accelerated reward points with every British Airways flight or by
spending on everyday purchases

Personal Banking:

Deposits
Loans
Cards
36
 Investments
Insurance
Demat services
Wealth management

NRI Banking:

Money Transfer
Bank accounts
Investments
Property Solutions
Insurance
Loans

Business Banking:

Corporate net banking

Cash Management
Trade services
FXonline
SME services
Online taxes
Custodial services

37
COMPARATIVE ANALYSIS

PARTICULARS STATE BANK OF ICICI BANK

INDIA
NRI SERVICES Indians everywhere At ICICI Bank NRI
should become Services, it is their
AIMS
enlightened International constant endeavor to
citizens. Wherever you provide products and
are, whichever country services that will make
you live, enrich that banking convenient for
nation, not only in NRI’s. As a part of this
financial terms, but also commitment, they now
with your sweat present their new
knowledge and dignity customer engagement
initiative "NRI Engage".
BRANCHES World largest network of Private sector bank
branches possess wider network of
NETWORK
branches
PRODUCT NRE, NRO, FCNR, NRI EDGE, NRE, NRE
STDR (Special Term FIXED, NRO FIXED,
Deposit) TDR (Term NRO, FCNR, RFC,
Deposit) & RFC Rupee Plus Plan, NRE
Recurring
REMITTANCE Instant Transfer, Direct Debit (ACH) -
Online Remittance ( SBI Cheque Lock Box - Web
Express Remit ), Wire Transfer -
Speed Remittance (SBI Donate2India - Wells
Express), Fargo - Correspondent
SWIFT / Wire Transfer, Banks - Wire Transfer /
Draft / Cashier's , SWIFT details - Foreign
Cheques, Currency Cheque -
Foreign Currency Branch Based
Cheques Remittance

38
EXCHAGE RATE Exchange Rates is Higher exchange rate as
cheaper as compare to compare to public sector
other banks bank.
QUANTUM OF Minimum-$2000 Minimum amount: 100
REMITTANCE USD or equivalent
Maximum-$1,00,000
Maximum amount: No
limit. For Ready Cash
the limit is USD 850 or
equivalent
INTERNET Various Transaction All Transaction
BANKING include : Money
Transfer, STDR/TDR,
Bills Payment (like
Electricity bill ), FCNB
Investment Mutual Fund, Insurance Offsore Banking
Structured Product, Deposits, portfolio
Portfolio Investment Investment, Mutual
Scheme. Fund.
Home Loan Minimum age 18. Minimum age 21
1.salaried Applicant-
Min-$500 or NAI $6000
Employed for min 1yr
Employed for min 2yrs 2.Self Employed –min
or valid work job permit 3yr
i)Interest rate on
Interest rate same as
monthly basis
resident
ii)Fixed or floating rate
any one option.
Combination can be
done of fixed & floating
which is called SBI
flexi loan

39
1.3 Research Objective:

To analyze the product and services offered by SBI.

To analyze the product and services offered by ICICI.
To compare the product and services of SBI and ICICI.
To compare the level of customer satisfaction of SBI and ICICI.

1.4 Review of Literature:

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

40
1.5 Key Words:

Bank:

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.

Mobile Banking:

Mobile banking (also known as M-Banking, SMS Banking etc.) is a term used for
performing balance checks, account transactions, payments etc. via a mobile device
such as a mobile 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 bank, credit
union or building 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 menber branch offices.

41
Atm:

An automated teller machine (ATM) is a computerized telecommunications device

that provides the customers of a financial institution with access to financial
transactions in a public space without the need for a human clerk or bank teller. On
most modern ATMs, the customer is identified by inserting a plastic ATM card
with a magnetic stripe or a plastic smartcard with a chip, that contains a unique
card number and some security information, such as an expiration date or CVC
(CVV). Security is provided by the customer entering a personal identification
number (PIN).

Using an ATM, customers can access their bank accounts in order to make cash
withdrawals (or credit card cash advances) and check their account balances as
well as purchasing mobile cell phone prepaid credit. ATMs are known by various
other names including automated banking machine, money machine, bank
machine, cash machine, hole-in-the-wall, cashpoint, Bancomat (in various
countries in Europe and Russia), Multibanco (after a registered trade mark, in
Portugal), and Any Time Money (in India).

42
 RESEARCH
METHODOLOGY

43
2.1 Sampling design:

Target population:
The target population in this research refers to the bank customers who are having
an account in SBI bank and ICICI bank due to the convenience in collecting the
data. The respondents can be any gender, any income level, any occupation and
any education level.

Sampling unit

The sampling units are customers of ICICI bank and SBI bank.

Sampling method

For this research we use non-probability sampling. Zikmund (1997) stated that in
non-probability sampling, the probability of any particular member of the
population being chosen is unknown. The element in the population does not have
any probability attached to their being chosen as sample subjects.

Snow ball sampling will be applied in this research. Snow ball sampling is used to
collect the data from the customers. Snow ball sampling refers to the procedure
that involves the selection of additional respondents based on referrals of initial
respondents.

Sample size
Ghauri (2002) stated that sample size depend on the desired precision from the
estimate. Precision is the size of the estimating interval when the problem is one of
estimating a population parameter. This research selects 100 respondents as the
sample size due to limited of time by asking them that they are having an account

44
in SBI bank and ICICI bank due to the convenience in collecting the data. The
respondents can be any gender, any income level, any occupation and any
education level.

Sampling plan:

The researcher is going to collect the data from the ATMS and also by visiting the
bank.

2.2 Research methodology:

Sources of data:

The data is basically primary in nature It was obtained from the customers

Data Collection Method:

Our communication approach was basically structured questioning, that is personal

interview with the aid of printed questionnaires.

Data Analysis:

Appropriate statistical analysis will be adopted. The data will be tabulated and
analyzed.

45
2.3 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.

46
 DATA ANALYSIS
&INTERPERTATION

47
Data Analysis and Interpretation:

The following information contains the data interpretation of the questionnaires.

The respondent’s responses for the questions have been interpreted and a finding
has been made based on the respondents responses.

Frequency table for the demographic details of the SBI respondent’s

Table 3.1

AGE OF THE RESPONDENTS

Frequency Percent
25YRS-35YRS 12 38.7
36YRS-45YRS 5 16.1
46YRS-55YRS 5 16.1
ABOVE 55YRS 8 25.8
Total 30 100

Interpretation:

From the above table 38.7% respondents are belonging to the age category of
25yrs-35yrs. And 16.1% respondents are belonging to the category of 36yrs-45yrs
48
and 46yrs-55yrs. And 25.8% respondents are belonging to the category of above
55yrs.
Graph: 3.1

49
Table 3.2

GENDER OF THE RESPONDENTS

Frequency Percent
FEMALE 15 48.4
MALE 15 48.4
Total 30 100

Interpretation:

From the above table 48.4% respondents are belonging to the category of female.
And the remaining 48.4% respondents are belonging to the category of male.

50
Graph: 3.2

51
Table 3.3

EDUCATIONAL OUALIFICATION OF THE RESPONDENTS

Frequency Percent
SCHOOL 3 9.7
UG 9 29.0
PG 14 45.2
PROFESSIONAL 3 9.7
COURSE
M.phil/phd 1 3.2
Total 30 100

Interpretation:

From the above table 9.7% of respondents are belonging to the category of school
and professional course. And 29.0% of respondents are belonging to the category
of UG. And 45.2% of respondents are belonging to the category of PG. And 3.2%
of respondents are belonging to the category of M.phil/phd.

52
Graph 3.3

53
Table 3.4

OCCUPATION OF THE RESPONDENTS

Frequency Percent
SALARIED 25 80.6
PERSON
PROFESSIONALS 1 3.2
SUPERVISOR 1 3.2
MANAGERIAL 3 10.0
Total 30 100

Interpretation:

From the above table 80.6% of respondents are falling under the category of
salaried person. And 3.2% of respondents are falling under the category of
professionals and supervisor. And 10% of respondents are belonging to the
category of managerial.
54
Graph 3.4

55
Table 3.5

INCOME LEVEL OF THE RESPONDENTS

Frequency Percent
Rs.5,000- 17 54.8
Rs.15,000
Rs.15,001- 8 25.8
Rs.25,000
Rs.25,001- 4 12.9
Rs.35,000
Above Rs.45,000 1 3.2
Total 30 100

Interpretation:

From the above table 54.8% of respondents are falling under the income range
between Rs.5, 000-Rs.15, 000. And 25.8% are falling under the income range
between Rs.15, 001-Rs.25, 000. And 12.9% of respondents are falling under the
income range between Rs.25, 001-Rs.35, 000. And 3.2% of respondents are falling
under the income range between Above Rs.45, 000.

56
Graph 3.5

57
Table 3.6

REASON TO CHOOSE THE SERVICE

58
 Frequency Percent
EFFICIENT 14 45.2
CUSTOMER
SERVICE
TIME SAVING 8 25.8
TRANSCATION 3 9.7
COSTS
TECHNOLOGY 1 3.2
MORE ATMS 4 12.9
Total 30 100

Interpretation:

From the above table 45.2% of respondents are saying that the reason to choose
SBI is they are providing efficient customer service. And 25.8% of respondents are
saying that the reason to choose SBI is they are reducing our waiting time. And
9.7% of respondents are saying that the reason to choose SBI is Transaction costs.
And 3.2% of respondents are saying that the reason to choose SBI is Technology.
And 12.9% of respondents are saying that the reason to choose SBI is they are
provided more atm facility.

59
Graph 3.6

Table 3.7

TYPE OF SERVICE PREFER THE MOST

60
 Frequency Percent
ATM SERVICE 19 61.3
INTERNET 3 9.7
BANKING
MOBILE 3 9.7
BANKING
CORE BANKING 5 16.1
SYSTEM
Total 30 100

Interpretation:

From the above table 61.3% of respondents prefer the ATM service. And 9.7% of
respondents are preferred the internet banking and mobile banking. And 16.1% of
respondents prefer the core banking system.

61
Graph 3.7

62
 Frequency table for the demographic details of the ICICI
respondent’s

Table 3.8

AGE OF THE ICICI RESPONDENTS

Frequency Percent
25 YRS-35 YRS 29 96.7
ABOVE 55 YRS 1 3.3
Total 30 100

Interpretation:

From the above table 96.7% of respondents are falling under the age group of
25yrs-35yrs. And 3.3% of respondents are falling under the group of above 55yrs.

63
Graph 3.8

Table 3.9

GENDER OF THE ICICI RESPONDENTS

64
 Frequency Percent
FEMALE 12 40
MALE 18 60
Total 30 100

Interpretation:

From the above table 40% of respondents are belonging to the female category.
And 60% of respondents are belonging to the male category.

65
Graph 3.9

66
Table 3.10

EDUCATIONAL LEVEL OF ICICI RESPONDENTS

Frequency Percent
UG 2 6.7
PG 21 70.0
PROFESSIONAL 6 20.0
S
M.Phil/Ph.D 1 3.3
Total 30 100

Interpretation:

From the above table 6.7% of respondents are belonging to the category of UG.
And 70% of respondents are belonging to the category of PG. And 20% of
respondents are belonging to the category of professionals. And 3.3% of
respondents are belonging to the category of M.Phil/Ph.D.

67
Graph3.10:

68
Table 3.11

OCCUPATION OF THE ICICI RESPONDENTS

Frequency Percent
SALARIED 23 76.7
PERSON
BUSINESS MAN 3 10.0
PROFESSIONALS 3 10.0
MANAGERIAL 1 3.3
Total 30 100

Interpretation:

From the above table 76.7% of respondents belong to the category of salaried
person. And 10% of respondents are belonging to the category of businessman and
professionals. And 3.3% of respondents are belonging to the category of
managerial.

69
Graph 3.11

70
Table 3.12

INCOME LEVEL OF THE ICICI RESPONDENTS

Frequency Percent
Rs.5,000-Rs.15,000 16 53.3
Rs.15,001- 2 6.7
Rs.25,000
Rs.25,001- 9 30.0
Rs.35,000
Rs.35,001- 2 6.7
Rs.45,000
Above Rs.45,000 1 3.3
Total 30 100

Interpretation:

From the above table 53.3% of respondents are falling under the income level of
Rs.5, 000-Rs.15, 000. And 6.7% of respondents are falling under the income level

71
of Rs.15, 001-Rs.25, 000 and Rs.35, 001-Rs.45, 000. And 30% of respondents are
falling under the income level of Rs.25, 001-Rs.35, 000. And 3.3% of respondents
are falling under the income level of above Rs.45, 000.

Graph 3.12

72
Table 3.13

REASON FOR CHOOSING ICICI SERVICES

73
 Frequency Percent
EFFICIENT 8 26.7
CUSTOMER
SERVICE
EFFICIENT 8 26.7
COMPLAINTS
HANDLING
TIME SAVING 4 13.3
TRANSACTION 2 6.7
COSTS
TECHNOLOGY 4 13.3
RELIABLE 4 13.3
Total 30 100

Interpretation:

From the above table 26.7% of respondents are saying that the reason to choose
ICICI is they are providing efficient customer service and efficient complaint
handling. And 13.3% of respondents are saying that the reason to choose ICICI is
they are reducing our waiting time, technology and reliable. And 6.7% of
respondents are saying that the reason to choose ICICI is Transaction costs.

74
Graph 3.13

Table 3.14

75
 TYPE OF SERVICES PREFER THE MOST

Frequency Percent
ATM SERVICE 13 43.3
INTERNET 9 30.0
BANKING
MOBILE 4 13.3
BANKING
CORE BANKING 4 13.3
SYSTEM
Total 30 100

Interpretation:

From the above table 43.3% of respondents prefer the ATM service. And 30% of
respondents are preferred the internet banking. And 13.3% of respondents prefer
the core banking system and mobile banking.

76
Graph 3.14

Cross Tabulation and chi- Square Test:

77
The following table below is cross tabs and chi- square test for the demographic
details for the SBI respondents. For the cross tabulation and chi- square the
researcher has taken only education and reason to the service. And the other one is
occupation and type of service they prefer the most.

Table 3.15

EDUCATIONAL QUALIFICATION OF THE RESPONDENTS

REASON TO CHOOSE THE SERVICE CROSS TABULAION

REASO EFFICIENT TIME TRANSCAT TECH MO

N TO CUSTOMER SAVING ION COSTS NOLO RE Total
CHOOS SERVICE GY AT
E MS
THE
SERVIC
E
SCHOO 6.7% 3.3% .0% .0% .0% 10%
L

UG 13.3% 10% 3.3% .0% 3.3 30%

%
PG 13.3% 13.3% 6.7% 3.3% 10 46.7
% %
PROFE 10% .0% .0% .0% .0% 10%
SSION
AL
COURS
E

3.3% .0% .0% .0% .0% 3.3%

M.phil/p
hd

Total 46.7% 26.7% 10.0% 3.3% 13. 100.

3% 0%

78
Interpretation:

From the above table 6.7% of respondents are falling under the education level of
school has chosen the efficient customer service in SBI. And the same way 13.3%
fall under UG, 13.3% fall under PG, 10% fall under professional course, 3.3% fall
under MPhill and PHD. These are the different categories and each of the
categories has chosen the SBI services due to different reasons. The reasons are as
follows: efficient customer service, time saving, less transactional cost fast
technology and no. of ATMS.

79
Graph 3.15

80
Table 3.15

Chi-Square Test -I

Hypothesis:

Ho: There is no significant relationship between the educational qualification of

the respondents and the reason to choose the service.

Ha: There is a significant relationship between the educational qualification of the

respondents and the reason to choose the service.

Value df Asymp. Sig. (2-

sided)
Pearson 8.739 16 .924
Chi-
Square

Interpretation:

From the above table the calculated chi-square statistic in this case is .

81
924. Since the calculated chi-square is above 0.05. The null hypothesis is
rejected and the alternate hypothesis is accepted .So there is a significant
relationship between the educational qualification of the respondents and
the reason to choose the service.

Table 3.16

OCCUPATION OF THE RESPONDENTS for SBI bank TYPE OF

SERVICE PREFER THE MOST CROSS TBULATION

TYPE OF ATM INTERNE MOBILE CORE Total

SERVICE SERVICE T BANKING BANKING
PREFER BANKIN SYSTEM
THE G
MOST
SALARIE 53.3% 3.3% 6.7% 20% 83.3
D
PERSON
%

PROFESSI .0% 3.3% .0% .0% 3.3%

ONALS

SUPERVIS 3.3% .0% .0% .0% 3.3%

OR

MANAGE 6.7% 3.3% .0% .0% 10%

RIAL

82
 Total 63.3% 10% 6.7% 20% 100%

Interpretation:

Above table shows that majority of the person use the all different
services such as ATM services, internet banking, mobile banking and
core banking system that is salaried person. So we can say that more the
professional and qualified person using more banking services.

Graph 3.16:

83
Table 3.16

Chi-Square Test - II

Hypothesis:

84
 Ho: There is no significant relationship between the occupation of the
respondents and the type of service they prefer the most.

Ha: There is no significant relationship between the occupation of the

respondents and the type of service they prefer the most.

Value df Asymp. Sig. (2-

sided)
Pearson 13.186 9 .154
Chi-
Square

Interpretation:

From the above table the calculated chi-square statistic in this case is .154. Since
the calculated chi-square is below 0.05. The null hypothesis is accepted and the
alternate hypothesis is rejected.
So there is no significant relationship between the occupation of the respondents
and the type of service they prefer the most.

The following table below is cross tabs and chi- square test for the demographic
details for the ICICI respondents. For the cross tabulation and chi- square the
researcher has taken only education and reason to the service. And the other one is

85
occupation and type of service they prefer the most.

Table 3.17

EDUCATIONAL LEVEL OF ICICI RESPONDENTS * REASON FOR

CHOOSING ICICI SERVICES CROSS TABULATION

REA EFFI EFFICIENT TIME TRANSACTIO TECHNOLOG RELIABLE Tot

SON CIEN COMPLAIN SAVIN N COSTS Y al
T TS G
FOR CUST HANDLING
CHO OME
OSI R
NG SERV
ICIC ICE
I
SER
VIC
ES
UG .0% .0% .0% 6.7% .0% .0% 6.7
%
PG 13.3% 26.7% 10% .0% 6.7% 13.3% 70
%
PROF 10% .0% 3.3% .0% 6.7% .0% 20
ESSI %
ONA
L
COU
RSE
M.PH 3.3% .0% .0% .0% .0% .0% 3.3
IL/PH 5
D
TOTA 26.7% 26.7% 13.3% 6.7% 13.3% 13.3% 100
L %

Interpretation:

86
These are the different categories and each of the categories has chosen the SBI
services due to different reasons. The reasons are as follows: efficient customer
service, time saving, less transactional cost fast technology and Reliable.

Graph 3.17

87
Table 3.17

Chi-Square Test - I

Hypothesis:

Ho: There is no significant relationship between the educational qualification and

the reason for choosing the service.
Ha: There is a significant relationship between the educational qualification and the
reason for choosing the service.

Value df Asymp. Sig. (2-

sided)
Pearson 40.268 15 .000
Chi-
Square

Interpretation:

From the above table the calculated chi-square statistic in this case is .000. Since
the calculated chi-square is below 0.05. The null hypothesis is accepted and the

88
alternate hypothesis is rejected.
So there is no significant relationship between the educational qualification of the
respondents and the reason for choosing the service..

Table 3.18

OCCUPATION OF THE ICICI RESPONDENTS * TYPE OF

SERVICES PREFER THE MOST CROSS TABULATION

TYPE OF ATM INTERNE MOBILE CORE Total

SERVICE SERVICE T BANKING BANKING
PREFER BANKIN SYSTEM
THE G
MOST
SALARIE 36.7% 20% 13.3% 6.7% 76.7
D
PERSON
%

BUSINESS 3.3% 3.3% .0% 3.3% 10%

MAN

PROFESSI 3.3% 3.3% .0% 3.3% 10%

ONALS

MANAGE .0% 3.3% .0% .0% 3.3%

RIAL

Total 43.3% 30% 13.3% 13.3% 100%

89
Interpretation:

Above table shows that majority of the person use the all different
services such as ATM services, internet banking, mobile banking and
core banking system that is salaried person. So we can say that more the
professional and qualified person using more banking services.

Graph 3.18

90
Table 3.18

Chi-Square Test - II

Hypothesis:

Ho: There is no significant relationship between the occupation of the respondents

and the type of service they prefer the most.

Ha: There is a significant relationship between the occupation of the respondents

and the type of service they prefer the most.

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 Value df Asymp. Sig. (2-
sided)
Pearson 5.974 9 .743
Chi-
Square

Interpretation:

From the above table the calculated chi-square statistic in this case is .743. Since
the calculated chi-square is above 0.05. The null hypothesis is rejected and the
alternate hypothesis is accepted
So there is a significant relationship between the occupation of the respondents and
the type of service they prefer the most.

92
FINDINGS
RECOMMENDATIONS AND
CONCLUSION

Findings:

93
Sum Of the respondents to choose the SBI bank is because the bank is proving
more ATM facility to the customers.
And many of the respondents are saying the reason to choose the services of the
SBI bank is because they are good in efficient customer service.
And the income level of the respondents who are having an account in SBI bank
falling under the income level of Rs. 5,000 – Rs.15.000.
The age group of 25yrs – 35yrs respondents mostly is having an account in SBI
bank.
The both gender are equally having an account in SBI bank.
And 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.
And many of the respondents are saying the reason to choose the services of the
ICICI bank is because they are good in efficient customer service and efficient
complaint handling.
And the income level of the respondents who are having an account in ICICI bank
falling under the income level of Rs. 5,000 - Rs.15.000.
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.

And 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.

94
Recommendation:

Since many of the respondents are not aware of there key services. The bank has
to take some initiatives.
The bank can post a list of services that they are rendered to the customers inside
the bank Premises.
And they can post demo of all these services in their bank website.
They can concentrate more on the respondents are falling under the age group
25yrs – 35yrs.
The SBI bank can concentrate on customer complaints handling.
The ICICI bank can concentrate on the female gender.
The bank can also send a post to there customers by informing there services and
how to proceed with that and all details they can mention it in the post.

Conclusion:

Since both the banks are competing equally with each other.
But SBI bank is little bit below the line in customer complaints handling when
compared to ICICI bank.
The ICICI bank is little bit below the line in concentrating on female customers
when to SBI bank.

95
APPENDICS

Questionnaire

96
Personal details

1. Name:
2. Age: a) □ 25yrs- 35 yrs b) □ 36 yrs - 45yrs c) □ 46 – 55 yrs d) □ above 55
yrs
3. Gender: a) Male □ b) Female □
4. Educational Qualification: a) Illiterate □ b) School □ c) UG □ d) PG □
e) Professional Course □ f) Others □
5. Occupation: a) House wife □ b) Students □ c) Salaried person □
d) Business man □ e) Professionals □ f) Supervisor □
g) Managerial □ h) pensioner □
6. Income level:
a) Rs.5,000 – Rs.15,000 b) Rs.15,001-Rs.25,000
c) Rs.25,001- Rs.35,000 d) Rs.35,001-Rs.45,000
e) Above Rs. 45,000

7. In which bank do you have an account?

a) ICICI bank □ b) SBI bank □

8. What is the reason to choose the services of the bank?

a) Efficient customer service □ b) efficient complaints handling □
c) Time saving □ d) transaction costs □ e) technology
f) Others _________ pls specify

9. What type of services do you prefer the most?

97
 a) ATM service b) Internet Banking c) Mobile Banking
d) Core banking system e) Others _____________ pls specify

Customer service questionnaire

Please use (/) mark to give your responses for the following questions

1=strongly disagree, 2= disagree, 3= neutral, 4= agree, 5= strongly agree

S 1 2 3 4 5
.
n
o
ATM Service
1 I am facing problems in withdrawing cash from
ATM.
2 I am facing problems like insufficient cash in
ATM.
3 ATM services are useful for me to deposit cash
and cheques
4 ATM services are useful for me to request for
cheque book
5 ATM services are useful for me to get the enquiry
statement of my account.
Internet Banking

98
1 Internet banking helps me to transfer funds from
the bank to the personalized transactions
2 Internet banking saves me time for the banking
transactions
3 Internet banking helps me in bill payments
4 Internet banking secures the money transactions
5 Internet banking helps in online trading
Mobile banking
1 Mobile banking is useful for me to know the end
of day account balance.
2 Mobile banking is useful for me to know the
cheque details
3 Mobile banking is useful for me to know the
Debit/credit above certain limit in my account.
4 Mobile banking is useful for me to Stop
inward/outward cheques.
5 Mobile banking is useful for my bill payments
6 Mobile banking helps me to know about the
debit/credit details
7 Mobile banking provides me a support for
ticketing, recharging mobiles etc.
Core Banking system
1 Core banking system helps me to transfer funds
from different branches
2 Core banking system makes me convenient to
know about the deposit details
3 Core banking system helps me to protect my
personal information

99
4 Core banking system helps me for the ATM
service transactions
5 Core banking system helps me for the internet
banking transactions

BIBLIOGRAPHY:

www.icicibank.com
www.sbi.co.in
www.ezine@rticles.com
www.iupindia.org

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www.ebscohostsearch.com
www.emeraldinsight.com
www.scribd.com

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