COMPARISON OF LOANS & ADVANCES OF SBI and ICICI BANK.

For the year 2003:

Name Of the Banks

Amt of advances

State Bank Of India

137758.46

ICICI Bank

52474.48

For the year 2004:

Name Of the Banks

Amt of advances

State Bank Of India

157933.54

ICICI Bank

60757.36

For the year 2005:

Name Of the Banks

Amt of advances

State Bank Of India

202374.46

ICICI Bank

88991.75

Name Of the Banks

Amt of advances

State Bank Of India

261641.54

ICICI Bank

143029.89

For the year 2006:

For the year 2007:

Name Of the Banks

Amt of advances

State Bank Of India

337336.49

ICICI Bank

164484.38

For the year 2008:

Name Of the Banks

Amt of advances

State Bank Of India

366435.68

ICICI Bank

2,25,616

For the year 2009:

Name Of the Banks

Amt of advances

State Bank Of India

448448.52

ICICI Bank

1,79,269

Interpretation:
Considering the above data we can say that year on year the amount of advances lent by

State Bank of India has increased which indicates that the banks business is really commendable
and the Credit Policy it has maintained is absolutely good. Whereas ICICI bank do not have such
good business SBI is ahead in terms of its business when compared to ICICI bank, this implies
that SBI has incorporated sound business policies in its bank.

ADVANTAGES OF ICICI OVER SBI:

ICICI is growing at a very fast rate with a total asset of Rs. 3,744.10 billion.
In the area of human relations, the two are taking divergent paths. SBI, which had over 1 lacks
employees, has reduced headcount through a voluntary retirement scheme and is cautious about
adding headcount.
ICICI Bank, on the other hand, is setting up regional hubs where its workforce would be
concentrated and plans to add 20,000 to its headcount every year. The group plans to add between
75,000 and 1, 00,000 employees in the next few years
ICICI Bank is also set to outdo SBI is in its international book
- An area where it has been very aggressive.
ADVANTAGES OF SBI OVER ICICI:
-SBI is the largest and oldest bank of India. Its major stocks are held by government of India. So
this bank enjoys the trust of its Customers a lot.
-SBI offers flexible tenures of loan repayment.
-State bank of India has vast experience in the field of SME (Small and Medium Enterprises)
Financing.
-As it is the oldest name so it enjoys public trust a lot.

-SBI have four national level Apex Training Colleges and 54 Learning Centers spread all over the
country the Bank is Continuously engaged in skill enhancement of its employees.
-Some of the training programs are attended by bankers from banks in other countries.
-SBI group, which has over 10,000 branches, is planning to add another 3,000 branches.
-It is also set to become the largest issuer of debit cards and is the second largest credit card
issuer.

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

Sunday, 09.23.2007, 11:59pm (GMT-7)

NEW JERSEY: Indus American Bank has tied up with State Bank of India to offer money
transfer services to India for its clients. Under the new money transfer service, which will provide
expanded services to Indus American Bank customers can expect service at over 14,000 branch
locations of State Bank of India within India, and at over 14,000 additional RTGS participating
banks.
Funds remitted from Indus American Bank would reach recipients typically within 24 hours. As
the largest bank in India, State Bank of India offers excellent exchange rates which are now
available to Indus American Bank customers. India is one of the biggest destinations for foreign
remittances.

ICICI Bank allots equity shares

ICICI Bank allotted 17,800 equity shares of face value of Rs 10 each on Sep. 18, 2007 under the
employees stock option scheme, 2000 (ESOS).ICICI Bank (ICICIBANK) was promoted in 1994
by ICICI, an Indian development financial institution. The two entities subsequently merged to
become the largest commercial bank in the private sector.
Shares of the company gained Rs 7.75, or 1.38%, to settle at Rs 569.9. The total volume of shares
traded was 173,655 at the BSE

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

1) To study the comparative analysis between SBI & ICICI bank on the basis of customer
satisfaction, lending schemes and risk management.
2) To know customer awareness regarding the products and services of SBI and ICICI bank.
3) To find the advantages of SBI over ICICI bank and vice versa.
4) To know the preference of loan & advances of SBI over ICICI.

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

SAMPLE SIZE: This refers to the number of items to be selected from the universe to
constitute a sample
In our research sample size is 100 to know the customer satisfaction & perception about the
banks.
STATISTICAL TOOL- I have applied 3 techniques in my project i.e
1-weighted average method
2- Rank correlation method and
3- Chi-square test in my project.

SOURES OF DATA COLLECTION

While deciding about the method of data collection to be used for the study the researcher should
keep to types of data.
1. Primary
2. Secondary Data.
I used in my research primary data, as well as secondary data. Primary means collected a fresh,
and the first time data will use Questionnaire and secondary means which are already available
like annual report, magazines, internet etc.
SAMPLING TECHNIQUE
It is a series of questions asked to individuals to obtain statistically useful information about a
given topic. Respondents give answer according to their will. I used one questionnaire as a
sampling technique. The questionnaire prepared for the customers of the SBI & ICICI bank to
know their satisfaction level.

10

LIMITATION OF THE STUDY

1- As the Chandigarh and Mohali dealt in survey, so the coverage area is small according to
the project need.
2- Size Of the research may not be substantial.
3-

Information may be biased because of the preference of the customers.

4- Complete data was not available due to company privacy and secrecy.
5- The survey was carried through questionnaire and the questions were based on
perception.
6- There was lack of time on the part of respondents.
7- The banking sector is too vast & it is not possible to cover each & every customer.
8- The study is limited to a particular branch of SBI and ICICI bank.

11

DATA ANALYSIS & INTERPRETATION

Q.1- ACCOUNTS ON WHICH BANK
ICICI BANK
SBI

Frequency
50
50

Percentage
50
50

Interpretation:
From the above table 50% having accounts in ICICI BANK and 50% having in SBI.

12

Q.2.AGE OF THE RESPONDENTS

ICICI Bank

SBI

25YRS-35YRS
36YRS-45YRS

30
10

10
12

46YRS-55YRS

23

ABOVE 55YRS
Total

3
50

05
50

Interpretation:
Above table shows, in case of SBI maximum customers are of age group between 46-55 i.e 46%
where as in case of ICICI Bank maximum 60% customer are of age group between 25- 35 yrs.

Q.3. - REASON TO CHOOSE THE BANKS

SBI
SERVICES
Efficient customer service
Time saving
transaction costs
Technology
ATMs

Rank 1
10
20
11
7
2

Rank 2
12
8
17
9
4

13

Rank 3
14
11
8
12
5

Rank4
8
7
9
18
8

Rank5
6
4
5
4
31

Interpretation:
Above table shows that, Maximum respondents give rank 1 to time saving where as maximum
respondents give lowest rank to ATMs.

Analysis: Applying weighted average method.

SERVICES
Efficient
customer
service
Time saving
transaction
costs
Technology

Rank

Rank

Rank

Rank

Rank

Calculation

Weighted

R1

1
10

2
12

3
14

4
8

5
6

138

average
2.76

20
11

8
17

11
8

7
9

4
5

117
130

2.34
2.60

5
4

7
2

9
4

12
5

18
8

4
31

153
212

3.06
4.24

2
1

ATMs

Above calculations shows that the highest weighted average is of ATMs.

ICICI BANK
SERVICES
Efficient customer service
Time saving
transaction costs
Technology
ATMs

Rank 1
2
5
4
8
31

Rank 2
7
12
9
18
4

14

Rank 3
11
8
17
9
5

Rank4
20
11
8
7
4

Rank5
10
14
12
8
6

Interpretation:
Above table shows that maximum customers give rank 1 to ATMs where as maximum customer
gives time saving to lowest rank of ICICI bank Services.

Analysis: Applying weighted average method.

SERVICES
Efficient
customer
service
Time saving
transaction
costs
Technology
ATMs

Rank

Rank

Rank

Rank

Rank

Calculation

Weighted

R2

1
2

2
7

3
11

4
20

5
10

179

average
3.58

5
4

12
9

8
17

11
8

14
12

167
185

3.34
3.7

3
1

8
31

18
4

9
5

7
4

8
6

139
100

2.78
2

4
5

Above calculation shows that transaction cost is on Rank 1 for the ICICI customer where as
ATMs are on the last rank.

Applying rank Correlation method over these two banks weighted average.
R1

R2

D= R1-R2

D2

3
5
4
2
1
TOTAL

2
3
1
4
5

1
2
3
-2
-4

1
4
9
4
16
34

15

1-6D2 / N3- N
= 1- 6 X 34 / (5)3 5
= 1- 204 / 125 -5
=- 1.69
S0, there are negative relationship between these two banks.

Q.4- TYPE OF ACCOUNT IN THE BANKS

FIXED ACCOUNT
SAVING ACCOUNT
CURRENT ACCOUNT
OTHERS
Total

SBI
16(32%)
15(30%)
11(22%)
8(16%)
50

ICICI BANK
11(22%)
19(38%)
12(24%)
8(16%)
50

Interpretation: Above table shows that 32% and 22% customers having fixed account in SBI
and ICICI respectively where as only 16% customers having others accounts in both banks.
Q.5- TYPE OF SERVICE PREFER THE MOST (for SBI & ICICI BANK)
SBI
ATM SERVICE
22(44%)

16

ICICI Bank
18(36%)

INTERNET BANKING
MOBILE BANKING
CORE BANKING SYSTEM

5(10%)
6(12%)
17(34%)

11(22%)
12(24%)
9(18%)

Total

50

50

Interpretation: Above table shows that 44% customers prefer the ATM services of SBI where as
6% prefer to mobile banking and in ICICI 36% give preference to ATM services and 24% to
mobile banking.
Q.6- SATISFACTION LEVEL
YES
QUITE SATISFY
NO

SBI
34
14
2

ICICI Bank
26
21
3

17

Interpretation: Out of 50 only 34 respondents are fully satisfied with SBI and 26 with ICICI
bank.

Q.7-AWARENESS ABOUT THE PRODUCT & SERVICES

SBI
ICICI BANK

YES
39(78%)
34(68%)

NO
11(22%)
16(32%)

Interpretation: Above table shows that maximum customers are aware about their banks
products and services.
Q.8- SATISFACTION LEVEL OF LOAN & ADVANCES PRODUCTS.
HIGHLY SATISFIED
SATISFIED
AVERAGE
DISSATISFIED
HIGHLY DISSATISFIED

SBI
20(40%)
15(30%)
06(12%)
04(8%)
5(10%)

18

ICICI BANK
6(12%)
17(34%)
15(30%)
07(14%)
05(10%)

Interpretation: Above table shows that maximum i.e. 40% customers are highly satisfied with
the advance products of SBI where as in case of ICICI maximum customers i.e. 34% are only
satisfied with its advance products.
Analysis; - Applying WEIGHTED AVERAGE METHOD
SCALE
HIGHLY

W
5

X1
20

WX1
100

X2
6

WX2
30

SATISFIED
SATISFIED
AVERAGE
DISSATISFIED
HIGHLY

4
3
2
1

15
6
4
5

60
18
8
5

17
15
7
5

68
45
28
5

DISSATISFIED
TOTAL( )

15

191

176

WEIGHTED AVERAGE
SBI = WX1 / W

ICICI BANK = WX 2 / W

= 191 / 15

= 176 / 15

= 12.73

= 11.73

So, SBI is more preferable than ICICI bank.

Q.9-PREFRENCE OF LAON & ADVANCES SCHEMES OF SBI OVER ICICI.
SBI
ICICI BANK

PREFRENCE
26
28

NO PREFRENCE
24
22

19

Interpretation: Maximum customer is prefer to take loan from their own bank.
Analysis: to know the preference of SBI over ICICI banks loan & advances i am applying chisquare test.
SBI
ICICI BANK
TOTAL

PREFRENCE
26
28
54

NO PREFRENCE
24
22
46

TOTAL
50
50
100

Observed values

Expected Values

O-E

(O-E)2

(O-E)2/ E

O
26
24
28
22
TOTAL

27
23
27
23

1
1
2
-1

1
1
4
1

0.037
0.043
0.148
0.043
0.271

Degree of freedom= (c-1) (r-1)

= (2-1) (2-1)
=1
Level of significance at 5%, = 0.46
Calculated value= 0.271
It shows that calculated value is lower than table value,
So, hypothesis is accepted, means there is a preference of SBI loans & advances over ICICI bank.

Q.10-FEATURES YOU LIKE MOST IN TODAYS BANKING SCENARIO

SBI

20

ICICI BANK

LESS PAPER WORK

ATTRACTIVE INTEREST

18
5

12
6

RATE
TRANSPARENCY
SIMPLE & FAST

6
2

9
3

PROCESSING
FLEXIBILITY TO CHOOSE

11

17

AN OVERDRAFT
LONGER TENURE LOAN

FOR EASE OF REPAYMENT

SPECIALLY DESIGN

ON EMI BASE LOAN OR

PRODUCTS FOR SELF

EMPLOYED

Interpretation- Above data shows that maximum 36% 0f SBI customers are todays banking
scenario because of less paper work where as in case of ICICI Bank maximum customers i.e 34%
like it because of flexible EMI base loan or over draft.

Q.11- SATIFY WITH PRESENT BANKING SYSTEM

Highly Satisfied
Satisfied
Average
Dissatisfied
Highly dissatisfied

RESPONDENTS
20
45
18
10
07

21

Interpretation: Above data shows that maximum of customers i.e 45% are satisfied with the
present banking system.

FINDINGS
-Most of the respondents choose SBI because the bank is giving more loan and advances facility
to the customers.
-The age group of 25yrs 35yrs respondents mostly having accounts in ICICI bank where as
maximum old age respondents having account in SBI.

22

- According to my knowledge and perception maximum old age customers found SBI more
reliable bank as a public sector bank where as mostly youngsters have interest in ICICI bank.
-Customer awareness programme is required so that more people should attract towards loans &
advances product.
-Maximum customers are satisfied with todays banking scenario.
-Maximum customers like the most in banking services i.e less paper work where as they also
like the EMI base loan scheme.
-Even in case of loan & advances customers not only give preference to SBI but they are also
satisfied with it.
-In ICICI bank maximum customers having saving accounts where as in SBI maximum
customers have fixed account, reason among this that maximum customer rely over SBI for their
long term money deposits.
-maximum customers are satisfied with the more no. of ATM facilities of SBI where as ICICI
customers like it low transaction cost.
-36% of SBI customers well known about its loans & advances products where as, in ICICI bank
16% customers dont know about the loan & advances product of it.

RECOMMENDATIONS
1- Since many of the respondents are not aware of their product & services. The bank has to
take
some initiatives.
2- 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..

23

3- SBI should concentrate more on the respondents are falling under the age group 25yrs 35yrs.
4- ICICI should concentrate more over the people are falling under the age group of 45-55 yrs.
5- ICICI needs to increase its lending money to attract the more people towards its loan and
advances products.

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

24

-Launch Innovative product

-Customized advance products
-Better customer services
-Fastest customers problem solving techniques
-Customer retention
Since both the banks are competing equally with each other.
But SBI bank is little bit below the line in young customer handling when compared to ICICI
bank. The ICICI bank is little bit below the line in concentrating on Loan & advances products &
services then to SBI bank.
But SBI should be considering more reliable because of public sector bank & because of its
various schemes.

BIBLIOGRAPHY

25

BOOKS or JOURNALS
1- Preston Mcafee, R, Introduction to economic analysis, IV edition
2- Varshnnew, P.N. Banking and Practices, IVth edition
3- Mithani, D.M, Money, Banking, International trade & Public finance 2 nd edition
4-Business world 2010 February volume.

WEBSITES
www.rbi.com
www.statebankofindia.com
www.ICICIbank.com
www.moneycontrol.com

ANNEXURE- 1
QUESTIONNAIRE

26

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

e) Professional Course

(f) Others

(c) UG

(d) PG

5. Occupation:
a) House wife

(b) Students

(c) Salaried person

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

g) Managerial

(h) pensioner

6. Income level:
a) Rs.50,000 Rs.150,000 b) Rs.150,001-Rs.250,000
c) Rs.250,001- Rs.350,000 d) Rs.350,001-Rs.450,000
e) Above Rs. 450,000
7. In which bank do you have an account?
a) ICICI bank

(b) SBI bank

8. Why you choose the particular bank?

a) Efficient customer service

b) more ATMs

c) Time saving

d) transaction costs

e) Technology
9. What type of account do you have in bank?

27

a) Saving

b) Fixed

c) Current

d) Others.
10. Which type of service you prefer the most in your bank?
a) ATM service

b) Internet banking

c) Mobile banking

d) core banking

10. Are you satisfied with it?

a) Yes

b) quite satisfy

c) No

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

b) No

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

(b) satisfied

c) average d) dissatisfied

e) Highly dissatisfied
13. Are you taking the loan from your bank?
a) Yes

b) No

14. What Features do you like most in todays banking scenario regarding the loans?
a) Less paper work

b) Transparency

c) Less interest rates

d) longer tenure loan for ease of repayment

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

f) Specially design products for self employed.
15. Are you satisfied with todays banking system?
a) Yes

b) No

28