ICICI BANK

STATE BANK OF INDIA

ANK OF INDIA

A comparative financial performance of ICICI bank and

SBI bank

INDEX

CONTENT
PAGE NO

Acknowledgement..............................................................................................

Executive Summary............................................................................................

Indian Bank Industry..........................................................................................

Introduction of SBI.............................................................................................

Product & Services ..............................................................................................

12

Management .......................................................................................................

14

1
Introduction of ICICI..........................................................................................

15

History..................................................................................................................

16

Product & service.................................................................................................

28

SWOT ANALYSIS

SBI.......................................................................................................................

28

ICICI.....................................................................................................................

29

Current Scenario

Q-4 Statement of SBI..........................................................................................

Balance sheet......................................................................................................

37

P& L Account.......................................................................................................

37

ICICI BANK CURENT..........................................................................................

39

2
Profit & loss account............................................................................................

40

Balance sheet......................................................................................................

41

Summary Balance Sheet ....................................................................................

45

Analysis of project...............................................................................................

48

Statement of problem........................................................................................

49

Research Objective............................................................................................

50

Significance and scope.....................................................................................

51

Research methodology.....................................................................................

53

Analysis of data.................................................................................................

55

Findings............................................................................................................

60

Suggestion & Recommendation........................................................................

62

Conclusion.........................................................................................................

64

3
 Acknowledgement
I am honoured to express my gratitude to all the people who were always a great

help to me in achieving this milestone. I could have never completed this task

without valuable contributions from my teachers and faculty. I express my heart full

indebtness and owe a deep sense of gratitude to all of them including my guides

Dr.Parul Nagar and Mr. Farhan Shek.

I am extremely thankful to Prof. V. Subramaniam for his valuable guidance

throughout this project. Above all I extend my sincere thanks to all my colleagues

and friends without whom it was never possible to complete this assignment.

Thanks

4
 Executive Summary
In the growing global competition, the productivity of any business concern

depends upon the behavioural aspect of consumers. This topic deals with the

customer’s perception towards other Advance Product from SBI and ICICI

investment. This project report contains 5 different chapters. The report begins with

the introduction to company, its area of operation, its organization structure, its

achievements, etc.

The second chapter is the introduction to the Advance Product which gives a brief

idea regarding ADVANCE PRODUCT . It also contains the objectives and

limitations of the project.

The third chapter, methodology adopted in preparing this report is mentioned. It

covers the sample procedure, types of data used and the data collection method.

The fourth chapter comprehensive coverage of forecasting concepts and

techniques which shows the analysis of data through tabulation, computation and

graphical representation of data collected from survey.

The fifth chapter deals with the findings, suggestion & conclusion part which is

very much important after analysis is made.

5
 STATE BANK OF INDIA
ICICI BANK

As we know that only analysis and conclusion is not the end of a research, so in the

sixth chapter the recommendation part is covered which are made after a depth

study of the analysis part of thesis.

ANK OF INDIA

In each of the five chapters as described above, every chapter has been scheduled

in a manner so as to enable the reader to appreciate the contents easily. The report

is supported by figures and data wherever necessary with a view to assist the

reader in developing a clear cut understanding of the topic.

I hope this report will be extremely useful for those it is meant. Constructive and

healthy suggestions for improvements of the report will be great fully appreciated.

KUMAR SHAKTI

RANJAN

6
 STATE BANK OF INDIA ICICI BANK

INDIAN BANKING INDUSTRY

ANK OF INDIA
The banking section will navigate through all the aspects of the Banking System in

India. It will discuss upon the matters with the birth of the banking concept in the

country to new players adding their names in the industry in coming few years.

The banker of all banks, Reserve Bank of India (RBI), the Indian Banks Association

(IBA) and top 20 banks like IDBI, HSBC, ICICI, ABN AMRO, etc. has been well

defined under three separate heads with one page dedicated to each bank.

However, in the introduction part of the entire banking cosmos, the past has been

well explained under three different heads namely:

 History of Banking in India

 Nationalisation of Banks in India

 Scheduled Commercial Banks in India

The first deals with the history part since the dawn of banking system in India.

Government took major step in the 1969 to put the banking sector into systems and

it nationalised 14 private banks in the mentioned year. This has been elaborated in

7
 Nationalisationof Banks in India. The last but not the least explains about the

scheduled and unscheduled banks in

India. Section 42 (6) (a) of RBI Act 1934 lays down the condition of scheduled

commercial banks. The description along with a list of scheduled commercial banks

are given on this page.

STATE BANK OF INDIA ICICI BANK

Introduction of SBI

ANK OF INDIA
The origin of the State Bank of India goes back to the first decade of the

nineteenth century with the establishment of the Bank of Calcutta in Calcutta on 2

June 1806. Three years later the bank received its charter and was re-designed as

the Bank of Bengal (2 January 1809). A unique institution, it was the first joint-stock

bank of British India sponsored by the Government of Bengal. The Bank of Bombay

(15 April 1840) and the Bank of Madras (1 July 1843) followed the Bank of Bengal.

These three banks remained at the apex of modern banking in India till their

amalgamation as the Imperial Bank of India on 27 January 1921.

Primarily Anglo-Indian creations, the three presidency banks came into existence

either as a result of the compulsions of imperial finance or by the felt needs of local

European commerce and were not imposed from outside in an arbitrary manner to

modernise India's economy. Their evolution was, however, shaped by ideas culled

from similar developments in Europe

8
 and England, and was influenced by changes occurring in the structure of both the

local trading environment and those in the relations of the Indian economy to the

economy of Europe and the global economic framework.

The State Bank of India, the country’s oldest Bank and a premier in terms of

balance sheet size, number of branches, market capitalization and profits is today

going through a momentous phase of Change and Transformation – the two

hundred year old Public sector behemoth is today stirring out of its Public Sector

legacy and moving with an agility to give the Private and Foreign Banks a run for

their money.

STATE BANK OF INDIA ICICI BANK

The bank is entering into many new businesses with strategic tie ups – Pension

Funds, General Insurance, Custodial Services, Private Equity, Mobile Banking,

ANK OF INDIA
Point of Sale Merchant Acquisition, Advisory Services, structured products etc –

each one of these initiatives having a huge potential for growth.

The Bank is forging ahead with cutting edge technology and innovative new

banking models, to expand its Rural Banking base, looking at the vast untapped

potential in the hinterland and proposes to cover 100,000 villages in the next two

years.

9
 It is also focusing at the top end of the market, on whole sale banking capabilities to

provide India’s growing mid / large Corporate with a complete array of products and

services. It is consolidating its global treasury operations and entering into

structured products and derivative instruments. Today, the Bank is the largest

provider of infrastructure debt and the largest arranger of external commercial

borrowings in the country. It is the only Indian bank to feature in the Fortune 500

list.

The Bank is changing outdated front and back end processes to modern customer

friendly processes to help improve the total customer experience. With about 8500

of its own 10000 branches and another 5100 branches of its Associate Banks

already networked, today it offers the largest banking network to the Indian

customer. The Bank is also in the process of providing complete payment solution

to its clientele with its over 8500 ATMs, and other electronic channels such as

Internet banking, debit cards, mobile banking, etc.

STATE BANK OF INDIA ICICI BANK

With four national level Apex Training Colleges and 54 learning Centres spread all

over the country the Bank is continuously engaged in skill enhancement of its
ANK OF INDIA Some of the training programes are attended by bankers from banks in
employees.

other countries.

The bank is also looking at opportunities to grow in size in India as well as

Internationally. It presently has 82 foreign offices in 32 countries across the globe. It

10
 has also 7 Subsidiaries in India – SBI Capital Markets, SBICAP Securities, SBI

DFHI, SBI Factors, SBI Life and SBI Cards - forming a formidable group in the

Indian Banking scenario. It is in the process of raising capital for its growth and also

consolidating its various holdings.

Throughout all this change, the Bank is also attempting to change old mindsets,

attitudes and take all employees together on this exciting road to Transformation. In

a recently concluded mass internal communication programme termed ‘Parivartan’

the Bank rolled out over 3300 two day workshops across the country and covered

over 130,000 employees in a period of 100 days using about 400 Trainers, to drive

home the message of Change and inclusiveness. The workshops fired the

imagination of the employees with some other banks in India as well as other

Public Sector Organizations seeking to emulate the Program.

STATE BANK OF INDIA ICICI BANK

An important turning point in the history of State Bank of India is the launch of the

first Five Year Plan of independent India, in 1951. The Plan aimed at serving the

Indian economy in general and the rural sector of the country, in particular. Until the
ANK OF INDIA
Plan, the commercial banks of the country, including the Imperial Bank of India,

confined their services to the urban sector. Moreover, they were not equipped to

respond to the growing needs of the economic revival taking shape in the rural

areas of the country. Therefore, in order to serve the economy as a whole and rural

sector in particular, the All India Rural Credit Survey Committee recommended the

formation of a state-partnered and state-sponsored bank.

The All India Rural Credit Survey Committee proposed the take over of the Imperial

11
 Bank of India, and integrating with it, the former state-owned or state-associate

banks. Subsequently, an Act was passed in the Parliament of India in May 1955.

As a result, the State Bank of India (SBI) was established on 1 July 1955. This

resulted in making the State Bank of India more powerful, because as much as a

quarter of the resources of the Indian banking system were controlled directly by

the State. Later on, the State Bank of India (Subsidiary Banks) Act was passed in

1959. The Act enabled the State Bank of India to make the eight former State-

associated banks as its subsidiaries.

The State Bank of India emerged as a pacesetter, with its operations carried out by

the 480 offices comprising branches, sub offices and three Local Head Offices,

inherited from the Imperial Bank. Instead of serving as mere repositories of the

community's savings and lending to creditworthy parties, the State Bank of India

catered to the needs of the customers, by banking purposefully. The bank served

the heterogeneous financial needs of the planned economic development.

Branches

The corporate center of SBI is located in Mumbai. In order to cater to different

functions, there are several other establishments in and outside Mumbai, apart

from the corporate center. The bank boasts of having as many as 14 local head

offices and 57 Zonal Offices, located at major cities throughout India. It is recorded

that SBI has about 10000 branches, ICICI BANK

STATE BANK OF INDIA

ANK OF INDIA
12
 well networked to cater to its customers throughout India.

ATM Services

SBI provides easy access to money to its customers through more than 8500 ATMs

in India.

The Bank also facilitates the free transaction of money at the ATMs of State Bank

Group, which includes the ATMs of State Bank of India as well as the Associate

Banks – State Bank of Bikaner & Jaipur, State Bank of Hyderabad, State Bank of

Indore, etc. You may also transact money through SBI Commercial and

International Bank Ltd by using the State Bank ATM-cum-Debit (Cash Plus) card.

Subsidiaries

The State Bank Group includes a network of eight banking subsidiaries and several

non-banking subsidiaries. Through the establishments, it offers various services

including merchant banking services, fund management, factoring services, primary

dealership in government securities, credit cards and insurance.

.
STATE BANK OF INDIA ICICI BANK

The eight banking subsidiaries are:

ANK OF INDIA

13
  State Bank of Bikaner and Jaipur (SBBJ)

 State Bank of Hyderabad (SBH)

 State Bank of India (SBI)

 State Bank of Indore (SBIR)

 State Bank of Mysore (SBM)

 State Bank of Patiala (SBP)

 State Bank of Saurashtra (SBS)

 State Bank of Travancore (SBT)

Products And Services

Personal Banking

 SBI Term Deposits SBI Loan For Pensioners

 SBI Recurring Deposits Loan Against Mortgage Of Property

 SBI Housing Loan Loan Against Shares & Debentures

 SBI Car Loan Rent Plus Scheme

 SBI Educational Loan Medi-Plus Scheme

Other Services

 Agriculture/Rural Banking

 NRI Services

 ATM Services
STATE BANK OF INDIA ICICI BANK

 Demat Services

ANK OF INDIA

14
  Corporate Banking

 Internet Banking

 Mobile Banking

 International Banking

 Safe Deposit Locker

 RBIEFT

 E-Pay

 E-Rail

 SBI Vishwa Yatra Foreign Travel Card

 Broking Services

 Gift Cheques

The CNN IBN, Network 18 recognized this momentous transformation journey, the

State Bank of India is undertaking, and has awarded the prestigious Indian of the

Year – Business, to its Chairman, Mr. O. P. Bhatt in January 2008

INVESTMENT

MUTUAL FUND EQUITY SCHEMES

STATE BANK OF INDIA DABT SCHEMES
BALANCED SCHEMES
EXCHANGE TREADED SCHEMES
LIFE INSURENCE Unit Linked Products: Pension Products:Pure

Protection Products:Protection cum Savings

Products:Money Back Scheme Products:SBI Life -

SARAL ULIP Protection Plans: Specialized Term

ANK OF INDIA
Insurance:Retirement Solutions: SBI Life -

Swadhan (Group): SBI Life - Dhanaraksha Plus:

SBI Life - Grameen Shakti, Health Products:

EQUITY ALL TYPES

15
 SBI Mutual Fund is India’s largest bank sponsored mutual fund and has an

enviable track record in judicious investments and consistent wealth creation.

The fund traces its lineage to SBI - India’s largest banking enterprise. The

institution has grown immensely since its inception and today it is India's largest

bank, patronised by over 80% of the top corporate houses of the country.

SBI Mutual Fund is a joint venture between the State Bank of India and Société

Générale Asset Management, one of the world’s leading fund management

companies that manages over US$ 500 Billion worldwide.

Mumbai, August 26, 2008 – SBI Life Insurance has achieved a unique distinction

of ranking third globally in terms of number of Million Dollar Round Table (MDRT)

members. Of the 40,000 SBI Life Insurance Advisors, 1,662 have qualified for the

prestigious MDRT membership. Among these, 124 qualified for Court of Table

(COTs) and 20 for Top of Table (TOTs).

2008
RANK COMPANY NAME COUNTRY MEMBERS
1 Samsung Life Ins Korea 2,486
2 New York Life USA 2,167
3 SBI Life Insurance India 1,662

4 Northwestern Mutual USA 1,411

5 AIA-Hong Kong Hong Kong 1,159
11 LIC of India India 595
14 HDFC Standard Life India 536
22 Max New York Life India 343
68 ICICI Pru India 125
69 Birla Sunlife India 124

STATE BANK OF INDIA ICICI BANK

ANK OF INDIA 16
Management
The bank has 14 directors on the Board and is responsible for the management of the

Bank’s business. The board in addition to monitoring corporate performance also

carries out functions such as approving the business plan, reviewing and approving the

annual budgets and borrowing limits and fixing exposure limits. Mr. O. P. Bhatt is the

Chairman of the bank. The five-year term of Mr. Bhatt will expire in March 2011. Prior

to this appointment, Mr. Bhatt was Managing Director at State Bank of Travancore. Mr.

Bhatt has more than 30 years of experience in the Indian banking industry and is seen

as futuristic leader in his approach towards technology and customer service. Mr. Bhatt

has had the best of foreign exposure in SBI. We believe that the appointment of Mr.

Bhatt would be a key to SBI’s future growth momentum. Mr. T S Bhattacharya is the

Managing Director of the bank and known for his vast experience in the banking

industry. Recently, the senior management of the bank has been broadened

considerably. The positions of CFO and the head of treasury have been segregated,

and new heads for rural banking and for corporate development and new business

banking have been appointed. The management’s thrust on growth of the bank in

terms of network and size would also ensure encouraging prospects in time to come.

INTRODUCTION OF ICICI BANK

ICICI Group offers a wide range of banking products and financial services to corporate

and retail customers through a variety of delivery channels and through its specialised

group companies, subsidiaries and affiliates in the areas of personal banking, investment

banking, life and general insurance, venture capital and asset management. With a strong

customer focus, the ICICI Group Companies have maintained and enhanced their

17
 leadership position in their respective sectors.

STATE BANK OF INDIA ICICI BANK

ICICI Bank is India's second-largest bank with total assets of Rs. 3,793.01 billion (US$ 75

billion) at March 31, 2009 and profit after tax Rs. 37.58 billion for the year ended March 31,
ANK OF INDIA
2009. The Bank has a network of 1,451 branches and about 4,721 ATMs in India and

presence in 18 countries.

HITORY

1955:

The Industrial Credit and Investment Corporation of India Limited (ICICI)

incorporated at the initiative of the 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 elected as the first Chairman of

ICICI Limited.

ICICI emerges as the major source of foreign currency loans to Indian industry.

Besides funding from the 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%

1961:

18
 The first West German loan of DM 5 million from Kredianstalt obtained

1967:
STATE BANK OF INDIA ICICI BANK

ICICI made its first debenture issue for Rs.6 crore, which was oversubscribed

ANK OF INDIA
1972:

The second entity in India to set up merchant banking services

1977:

ICICI sponsored the formation of Housing Development Finance Corporation.

Managed its first equity public issue

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

19
 1993:

Promoted TDICI - India's first venture capital company

STATE BANK OF INDIA ICICI BANK

1994:

ANK OF INDIA
ICICI Securities and Finance Company Limited in joint venture with J. P. Morgan

set up

1996:

ICICI Asset Management Company set up.

ICICI Bank set up.

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

2000:

ICICI launched retail finance - car loans, house loans and loans for consumer

durables.

ICICI becomes the first Indian Company to list on the NYSE through an issue of

American Depositary Shares

20
 2001:

ICICI Bank became the first commercial bank from India to list its stock on NYSE.

ICICIBANK
STATE BankOFannounces
INDIA merger with Bank of Madura.
ICICI BANK

The Boards of ICICI Ltd and ICICI Bank approved the merger of ICICI with ICICI

ANK OF INDIA
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 inaugurated in Pune. It was the first of its

kind in India.

ICICI Bank launched Private Banking.

1100-seat Call Centre set up in Hyderabad

ICICI Bank Home Shoppe, the first-ever permanent aggregation and display of

housing projects in the county, launched in Pune,

21
 ATM-on-Wheels, India's first mobile ATM, launched in Mumbai.

2003:

STATE BANK OF INDIA ICICI BANK

The first Integrated Currency Management Centre launched in Pune.

ANK OF INDIA
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,

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 43% smaller credit card in dimensions

launched.

ICICI Bank subsidiary set up in Canada.

22
 Temasek Holdings acquired 5.2% stake in ICICI Bank.

ICICI Bank became the market leader in retail credit in India.

2005:BANK OF INDIA
STATE ICICI BANK

ICICI Bank and CNBC TV 18 announced India's first ever awards recognising the

achievements of SMEs, a pioneering initiative to encourage the contribution of

Small and Medium Enterprises to the growth of Indian economy.

ANK OF INDIA

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

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 8-8 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.

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

23
 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
STATE BANKamateur
OF INDIA golf event conducted in India. ICICI BANK

First Indian company to make a simultaneous equity offering of $1.8 billion in India,
ANK OF INDIA
the United States and Japan.

Acquired Ivestitsionno Kreditny Bank of Russia.

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

2007:

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

24
 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.

STATE BANK
Bhoomi OF INDIA
puja conducted for a regional hub in Hyderabad, Andhra Pradesh. ICICI BANK

ICICI Bank's USD 2 billion 3-tranche international bond offering was the largest
ANK OF INDIA
bond offering by an Indian bank.

Sangli Bank amalgamated with ICICI Bank.

ICICI Bank raised Rs 20,000 crore (approx $5 billion) from both domestic and

international markets through a follow-on public offer.

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 jewelry major Gitanjali

Group.

ICICI Bank became the first bank in India to launch a premium credit card -- The

25
 Visa Signature Credit Card.

Foundation stone laid for a regional hub in Gandhinagar, Gujarat.

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 inINDIA
Singapore. ICICI BANK
STATE BANK OF

ICICI Bank became the first private bank in India to offer both floating and fixed rate
ANK
onOF INDIA
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 career in banking, ICICI Bank launched the "Probationary Officer

Programme".

Launched Bank@home services for all savings and current a/c customers residing

in India

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

2008:

26
 ICICI Bank enters US, 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 simply done on mobile

phones.

ICICI Bank concluded India's largest ever securitisation 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
STATE BANK OF INDIA ICICI BANK
deal in Asia (ex-Japan)

in 2008 till date and the second largest deal in Asia (ex-Japan & Australia) since

the beginning of 2007.

ANK OF INDIA

BANK SEVIES

 Personal Banking o Savings & Deposits

o Loans

o Cards

o Wealth management

 Global Private Clients

27
 Corporate Banking o Transaction Banking

o Treasury Banking

o Investment Banking

o Capital Markets

o Custodial Services

o Rural & Agri Banking

o Structured Finance

o Technology Finance

 Business Banking o Current Account

o Business Loans

o Forex

o Trade

o Cash Management Services

 NRI Banking o Money Transfer

o Bank Accounts

o Investment

o Property Solutions

o Insurance

o Loans

INSURENCE & INVESTMENT

 Life Insurance o Life Insurance

28
 o Retirement Solutions

o Health Solutions

o Education Solutions

General Insurance o Health Insurance

o Overseas Travel Insurance

o Student Medical Insurance

o Motor Insurance

o Home Insurance

 Securities o Corporate Finance

o Primary Dealership

o Institutional Equities

o Retail Equities

 Mutual Fund o Our Funds

o Performance Analyser

o Systematic Investing

o Compare Schemes

 Private Equity Practice

INVESTOR RELATIONS

29
 It is ICICI Group's belief that all stakeholders should have access to

complete information regarding its position to enable them to accurately

assess its future potential. ICICI Group regularly publishes information on its

operations and various initiatives for its investors.

 Annual Reports

 Investor Presentations

 Quarterly Financial Results

 Share price and ownership

 SEC Filings

 Credit Ratings

 BANK
STATE Investor FAQs
OF INDIA ICICI BANK

SWOT ANALYSIS OF SBI

ANK OF INDIA

Strength/ Opportunities:

 The growth for SBI in the coming years is likely to be fueled by the following

factors:

 • Continued effort to increase low cost deposit would ensure improvement in

NIMs and hence earnings.

 • Growing retail & SMEs thrust would lead to higher business growth.

 • Strong economic growth would generate higher demand for funds pursuant

to higher corporate demand for credit on account of capacity expansion.

30
 

 Weakness/ Threats:

 The risks that could ensue to SBI in time to come are as under:

 • SBI is currently operating at a lowest CAR. Insufficient capital may restrict

the growth prospects of the bank going forward.

 • Stiff competition, especially in the retail segment, could impact retail growth

of SBI and hence slowdown in earnings growth.

 • Contribution of retail credit to total bank credit stood at 26%. Significant

thrust on growing retail book poses higher credit risk to the bank.

 • Delay in technology upgradation could result in loss of market shares.

 • Management indicated a likely pension shortfall on account of AS-15 to be

close to Rs50bn.

 • Slow down in domestic economy would pose a concern over credit off-take

thereby impacting earnings growth.

STATE BANK OF INDIA ICICI BANK

SWOT ANALYSIS OF ICICI BANK

ANK OF INDIA

 STRENGHTS:

1) Online Services: ICICI Bank provides online services of all it’s

banking facilities. It also provides D-Mart account facilities on-line, so a

person can access his account from anywhere he is.

31
 [D-Mart is a dematerialized account opened by a salaried person

for purchase & sale of shares of different companies.]

2) Advanced Infrastructure: Branches of ICICI Bank are well equipped

with advanced technology to provide the customers with taster banking

services. All the computerized machines are located in suitable manner

& are very useful to the customers & staff of the bank.

3) Friendly Staff: The staff of ICICI Bank in all branches is very friendly

& help the customers in all cases. They provide faster services along

with bonding & personal relationship with the customers.

STATE BANK OF INDIA ICICI BANK

4) 12 hrs. Banking services: Compared to other bank ICICI bank

provides
ANK OF INDIA long hrs. of services i.e. 8-8 services to the customers. This

service is one of it’s kind & is very helpful for the customers who are in

urgent need of money.

5) Other Facilities to the Customers & Employees: ICICI Bank also

provides other facilities like drinking water facilities, proper sitting

32
 arrangements to the customers. And there are also proper Ventilation &

sanitary facilities for the employees of the bank.

6) Late night ATM services: ICICI bank provides late night ATM

services to the customers. The ATM centers of ICICI bank works even

after 11:00pm. at night in certain branches.

 Weakness:

1) High Bank Service Charges: ICICI bank charges highly to

customers for the services provided by them when compared to

other bank & that is why it is only in the reach of higher class of

society.
STATE BANK OF INDIA ICICI BANK

ANK2)
OFLess
INDIA Credit Period: ICICI bank provides credit facilities but only upto

limited period. Even when the credit period is not over it sends

reminder letters to the customers which may annoy them.

 OPPORTUNITIES:

33
 1) Bank –Insurance services: The bank should also provide insurance

services. That means the bank can have a tie-up with a insurance

company. The bank will advertise & promote the different policies

introduced by the insurance company & convince their customers to

buy insurance policies.

2) Increase in percentage of Returns on increase: The bank should

provide higher returns on deposits in comparison of the present

situation. This will also upto large extent help the bank earn profits &

popularity.

STATE BANK OF INDIA ICICI BANK

3) Recruit professionally guided students: Bank & Insurance is a

ANK OF INDIAnon-aid
special course where the students specialize in the functioning

& services of the bank & also are knowledge about various tax policies.

The bank can recruit these students through tie-ups with colleges. Such

students will surely prove as an asset to the bank.

34
 4) Associate with social cause: The bank can also associate itself with

social causes like providing relief aid patients, funding towards natural

calamities. But this falls in the 4th quadrant so the bank should neglect

it.

 THREATS

1) Competition: ICICI Bank is facing tight competition locally as well as

internationally. Bank like CITI Bank, HSBC, ABM, Standered

Chartered, HDFC also provide equivalent facilities like ICICI do and

also ICICI do not have consistency in its international operation.

STATE BANK OF INDIA ICICI BANK

2) Net Services: ICICI Bank provides all kind of services on-line. There

ANK OF INDIA
can be easy access to the e-mail ids of the customers through wrong

people. The confidential information of the customers can be leaked

easily through the e-mail ids.

35
 3) Decentralized Management: Each branch manager is given the

authority of taking decisions in their respective branches. The decisions

made by different managers are diverse and any one wrong decision

can laid to heavy losses to the bank.

4) No Proper Facilities To Uneducated customers: ICICI Bank provides

all services through electronic computerized machines. This creates

problems to the less educated people. But this threat falls in the 4th

quadrant so its negligible. The company can avoid this threat.

STATE BANK OF INDIA ICICI BANK

CORRENT SENERIO

ANK OF INDIA
SBI profit rises 46% in Q4 on higher other income

36
 Kolkata, May 9 Riding on higher other income including profits from treasury

operations, State Bank of India posted a 46 per cent rise in net profit at Rs 2,742

crore for the fourth quarter ended March 31, 2009, up from Rs 1,883 crore during

the corresponding quarter of last year.

The bank made a profit of Rs 1,508 crore on account of sale of investments in the

quarter ended March 31, 2009, according to its Chairman, Mr O.P. Bhatt.

Other income for the quarter under consideration grew by 67 per cent at Rs 4,718

crore (Rs 2,817 crore).

The net profit for the year ended March 31, 2009 increased by 35.5 per cent at Rs

9,121 crore, against Rs 6,729 crore during the corresponding period last year.

STATE BANK OF INDIA ICICI BANK

The board of directors at a meeting here on Saturday recommended a dividend of

290 per cent or Rs 29 per share (215 per cent) for the year under review.
ANK OF INDIA

37
 The bank’s treasury income in 2008-09 increased by 171 per cent to Rs 2,566

crore on account of profit on sale of investments, Mr Bhatt said.

Pillar of growth

Treasury would continue to be an important pillar of growth for the bank, he

maintained.

“Historically, treasury was our residual business but this year treasury has

registered outstanding growth. We are now trying to offer products at par with other

multinational banks. Our fee-based income, which was earlier growing in single

digits, also grew by 30 per cent in 2008-09,” Mr Bhatt said explaining the reason for

the growth in the bank’s net profit.

Referring to the lower growth in net profit in 2008-09 vis-À-vis 2007-08 when the

growth was 48 per cent, he said, “It was due to the rise in overhead costs due to

branch expansion, liquidity overhang and the cost of carrying it and also on account

of higher provisioning for salary revisions and for pensions.”

STATE BANK OF INDIA ICICI BANK

ANK OF INDIA
38
A 30 per cent growth in advances also contributed to the growth of net profit, he

said.

“There has been a robust growth in our advances not only in terms of volumes but

also in terms of income,” he pointed out.

Performance

The bank’s core fee-based income for the year ended March 2009 grew by 29 per

cent to Rs 7,617 crore contributed by commission, exchange, loan processing fee

and account maintenance charges.

Other income increased by 46 per cent at Rs 12,691 crore (Rs 8,695 crore).

Domestic deposits grew by 33 per cent at Rs 6,96,340 crore (Rs 5,22,589).

Current Account and Savings Bank Account (CASA) deposits increased by 22 per

cent to Rs 2,73,396 crore (Rs 2,23,627 crore) and term deposits grew by 41.5 per

cent to Rs 4,22,944 crore (Rs 2,98,962 crore). The share of bulk deposits to total

deposits declined to 10.81 per cent (14.13 per cent).

Advances went up 30 per cent at Rs 5,48,540 crore (Rs 4,22,331 crore). The

credit-deposit ratio declined to 66.63 per cent (72.59 per cent).

“There has been an unprecedented flow of deposits since November 2008 to the

tune of Rs 1,000 crore a day; on the other hand there has been a decline in credit

offtake. This has led to a decline in CD ratio,” Mr Bhatt observed.

39
 STATE BANK OF INDIA ICICI BANK

The net interest margin (NIM) declined to 2.93 per cent (3.07 per cent). “The huge

growth in deposits, lesser growth and lower yield on advances has put a pressure
ANK OF INDIA
on our margins,” Mr Bhatt said.

The bank witnessed a two basis point dip in NIM in April 2009. However, with the

cost of deposits coming down, the bank was hopeful of either maintaining or

registering a slight improvement in its NIM, he said.

NPAs flat

The net non-performing assets remained almost flat at 1.76 per cent (1.78 per

cent).

“International NPAs increased by 955 crore as a result of economic slowdown,

particularly in the US and Singapore.

Domestic NPAs increased by Rs 1,774 crore of which Ratnagiri Power alone contributed

to Rs 1,651 crore,” Mr Bhatt said and added that the bank would be able to manage

NPAs at the current level.

BANANCE SHEET

Balance Sheet of State Bank of India ------------------- in Rs. Cr. -------------------

Mar '05 Mar '06 Mar '07 Mar '08 Mar '09

12
12 mths 12 mths 12 mths 12 mths
mths

Capital and Liabilities:

40
Total Share Capital 526.30 526.30 526.30 631.47 634.88

Equity Share Capital 526.30 526.30 526.30 631.47 634.88

Share Application Money 0.00 0.00 0.00 0.00 0.00

Preference Share Capital 0.00 0.00 0.00 0.00 0.00

Reserves 23,545.84 27,117.79 30,772.26 48,401.19 57,312.82

Revaluation Reserves 0.00 0.00 0.00 0.00 0.00

Net Worth 24,072.14 27,644.09 31,298.56 49,032.66 57,947.70

367,047.5
Deposits 380,046.06 435,521.09 537,403.94 742,073.13
3

Borrowings 19,184.31 30,641.24 39,703.34 51,727.41 53,713.68

386,231.8
Total Debt 410,687.30 475,224.43 589,131.35 795,786.81
4

Other Liabilities & Provisions 49,578.89 55,538.17 60,042.26 83,362.30 110,697.57

459,882.8
Total Liabilities 493,869.56 566,565.25 721,526.31 964,432.08
7

Mar '05 Mar '06 Mar '07 Mar '08 Mar '09

12 mths 12 mths 12 mths 12 mths 12 mths

Assets

Cash & Balances with RBI 16,810.33 21,652.70 29,076.43 51,534.62 55,546.17

Balance with Banks, Money at Call 22,511.77 22,907.30 22,892.27 15,931.72 48,857.63

Advances 202,374.45 261,641.53 337,336.49 416,768.20 542,503.20

Investments 197,097.91 162,534.24 149,148.88 189,501.27 275,953.96

Gross Block 6,691.09 7,424.84 8,061.92 8,988.35 10,403.06

Accumulated Depreciation 4,114.67 4,751.73 5,385.01 5,849.13 6,828.65

Net Block 2,576.42 2,673.11 2,676.91 3,139.22 3,574.41

Capital Work In Progress 121.27 79.82 141.95 234.26 263.44

Other Assets 18,390.71 22,380.84 25,292.31 44,417.03 37,733.27

Total Assets 459,882.86 493,869.54 566,565.24 721,526.32 964,432.08

131,325.4
Contingent Liabilities 191,819.34 259,536.57 736,087.59 614,603.47
0

Bills for collection 44,794.10 57,618.44 70,418.15 93,652.89 152,964.06

Book Value (Rs) 457.39 525.25 594.69 776.48 912.73

41
PRPFIT & LOSS ACCOUNT

Profit & Loss account of State Bank of India ------------------- in Rs. Cr. -------------------

Mar '05 Mar '06 Mar '07 Mar '08 Mar '09

12 mths 12 mths 12 mths 12 mths 12 mths

Income
Interest Earned 32,428.00 35,794.93 39,491.03 48,950.31 63,788.43
Other Income 7,119.90 7,388.69 7,446.76 9,398.43 12,691.35
Total Income 39,547.90 43,183.62 46,937.79 58,348.74 76,479.78
Expenditure
Interest expended 18,483.38 20,159.29 23,436.82 31,929.08 42,915.29
Employee Cost 6,907.35 8,123.04 7,932.58 7,785.87 9,747.31
Selling and Admin Expenses 2,634.64 1,853.32 3,251.14 4,165.94 5,122.06
Depreciation 752.21 729.13 602.39 679.98 763.14
Miscellaneous Expenses 6,465.82 7,912.15 7,173.55 7,058.75 8,810.75
Preoperative Exp Capitalised 0.00 0.00 0.00 0.00 0.00
Operating Expenses 11,278.18 11,872.89 13,251.78 14,609.55 18,123.66
Provisions & Contingencies 5,481.84 6,744.75 5,707.88 5,080.99 6,319.60
Total Expenses 35,243.40 38,776.93 42,396.48 51,619.62 67,358.55
Mar '05 Mar '06 Mar '07 Mar '08 Mar '09

12 mths 12 mths 12 mths 12 mths 12 mths

Net Profit for the Year 4,304.52 4,406.67 4,541.31 6,729.12 9,121.23
Extraordionary Items 0.00 0.00 0.00 0.00 0.00
Profit brought forward 0.34 0.34 0.34 0.34 0.34
Total 4,304.86 4,407.01 4,541.65 6,729.46 9,121.57
Preference Dividend 0.00 0.00 0.00 0.00 0.00
Equity Dividend 657.87 736.82 736.82 1,357.66 1,841.15
Corporate Dividend Tax 93.75 103.34 125.22 165.87 248.03
Per share data (annualised)
Earning Per Share (Rs) 81.79 83.73 86.29 106.56 143.67
Equity Dividend (%) 125.00 140.00 140.00 215.00 290.00
Book Value (Rs) 457.39 525.25 594.69 776.48 912.73
Appropriations
Transfer to Statutory Reserves 3,552.89 3,566.51 3,682.15 5,205.69 7,032.04
Transfer to Other Reserves 0.01 0.00 -2.88 -0.10 0.01
Proposed Dividend/Transfer to Govt 751.62 840.16 862.04 1,523.53 2,089.18
Balance c/f to Balance Sheet 0.34 0.34 0.34 0.34 0.34
Total 4,304.86 4,407.01 4,541.65 6,729.46 9,121.57

All the balance sheet show what is strength of this Bank.

ICICI BANK CURENT

Performance Review – Year ended March 31, 2009

• Dividend of Rs. 11 per share proposed, same as previous year

42
 • Profit before tax of Rs. 5,117 crore for the year ended March 31, 2009 compared

STATE
to Rs.BANK OF crore
5,056 INDIA for the year ended March 31, 2008 ICICI BANK

• 12% year-on-year increase in operating profit for the year ended March 31, 2009

• 14% year-on-year reduction in costs due to cost rationalization measures

ANK OF INDIA
• Current and savings account (CASA) ratio increased to 28.7% at March 31, 2009

from 26.1% at March 31, 2008

• Increase of Rs. 5,286 crore in CASA deposits in quarter ended March 31, 2009

• Strong capital adequacy ratio of 15.5% and Tier-1 capital adequacy ratio of 11.8%

after proposed dividend; Tier-1 capital adequacy ratio highest among large Indian

banks The Board of Directors of ICICI Bank Limited (NYSE: IBN) at its meeting

held at Mumbai today, approved the audited accounts of the Bank for the

year ended March 31, 2009.

Profit & loss account

• Profit before tax for the year ended March 31, 2009 (FY2009) was Rs.5,117 crore

(US$ 1,009 million), compared to Rs. 5,056 crore (US$997 million) for the year

ended March 31, 2008 (FY2008).

• Profit after tax for FY2009 was Rs. 3,758 crore (US$ 741 million) compared to Rs.

4,158 crore (US$ 820 million) for FY2008 due to the higher effective tax rate on

account of lower proportion of income taxable as dividends and capital gains.

• Net interest income increased 15% from Rs. 7,304 crore (US$ 1,440million) for

FY2008 to Rs. 8,367 crore (US$ 1,650 million) for FY2009.

While the advances declined marginally year-on-year, the net interest income

increased due to improvement in net interest margin from 2.2% in FY2008 to 2.4%

in FY2009.

43
 Operating expenses (including direct marketing agency expenses) decreased 14%

to Rs. 6,835 crore (US$ 1,348 million) in FY2009 from Rs. 7,972 crore (US$ 1,572

million) in FY2008. The cost/average asset ratio for FY2009 was 1.8% compared to

2.2% for FY2008.

ICICI BANK
STATE BANK OF INDIA

• Profit before tax for the quarter ended March 31, 2009 (Q4-2009) was Rs. 1,071

crore (US$ 211 million) compared to Rs. 1,343 crore (US$265 million) for the
ANK OF INDIA
quarter ended March 31, 2008 (Q4-2008),primarily due to lower level of fee income

at Rs. 1,343 crore (US$ 265 million) in Q4-2009 compared to Rs. 1,928 crore (US$

380million) in Q4-2008, partly offset by lower operating expenses and higher net

interest income. The lower level of fee income was due to reduced investment and

acquisition financing activity in the corporate sector and lower level of fees from

distribution of retail financial products, reflecting the adverse conditions in global

and Indian financial markets.

• Profit after tax for Q4-2009 was Rs. 744 crore (US$ 147 million) compared to Rs.

1,150 crore (US$ 227 million) for Q4-2008.

Balance sheet

During the year, the Bank has pursued a strategy of prioritizing capital

conservation, liquidity management and risk containment given the challenging

economic environment. This is reflected in the Bank’s strong capital adequacy and

its focus on reducing its wholesale term deposit base and increasing its CASA ratio.

The Bank is maintaining excess liquidity on an ongoing basis. The Bank has also

placed strong emphasis on efficiency improvement and cost rationalization. The

44
 Bank continues to invest in expansion of its branch network to enhance its deposit

franchise and create an integrated distribution network for both asset and liability

products. In line with the above strategy, the total deposits of the Bank were

Rs.218,348 crore (US$43 billion) at March 31, 2009, compared to Rs.244,431 crore

(US$ 48.2 billion) at March 31, 2008. The reduction in term deposits by Rs. 24,970
STATE ICICI BANK
croreBANK
(US$OF4.9
INDIA
billion) was primarily due to the Bank’s conscious strategy of paying

off wholesale deposits. During Q4-2009, total deposits increased by Rs. 9,283

crore (US$ 1.8 billion), of

ANK OF INDIA
which Rs. 5,286 crore (US$ 1.0 billion), or about 57%, was in the form of CASA

deposits. The CASA ratio improved to 28.7% of total deposits at March 31, 2009

from 26.1% at March 31, 2008.

The branch network of the Bank has increased from 755 branches at March 31,

2007 to 1,438 branches at April 24, 2009. The Bank is also in the process of

opening 580 new branches which would expand the branch network to about 2,000

branches, giving the Bank a wide distribution reach in the country.

In line with the strategy of prioritizing capital conservation and risk containment, the

loan book of the Bank decreased marginally to Rs.218,311 crore (US$ 43.0 billion)

at March 31, 2009 from Rs. 225,616 crore(US$ 44.5 billion) at March 31, 2008.

Capital adequacy The Bank’s capital adequacy at March 31, 2009 as per Reserve

Bank of India’s revised guidelines on Basel II norms was 15.5% and Tier-1 capital

adequacy was 11.8%, well above RBI’s requirement of total capital adequacy of

9.0% and Tier-1 capital adequacy of 6.0%. The above capital adequacy takes into

account the impact of dividend recommended by the Board.

45
 Asset quality

At March 31, 2009, the Bank’s net non-performing asset ratio was 1.96%.During

the year the Bank restructured loans aggregating to Rs. 1,115crore (US$ 220

million).

Dividend on equity shares The Board has recommended a dividend of Rs. 11 per
STATE BANK OF INDIA
equity share(equivalent to US$ 0.43 per ADS) for FY2009. The declaration and

payment of dividend is subject to requisite approvals. The record/book closure

dates will be announced in due course.

ANK OF INDIA
Overseas banking subsidiaries

ICICI Bank Canada saw an increase of about CAD 1.75 billion in term deposits

during FY2009 while its customer accounts increased from about 200,000 at March

31, 2008 to over 280,000 at March 31, 2009. ICICI Bank Canada continued to

maintain liquidity of about CAD 850.0 million. ICICI Bank Canada’s profit after tax

for FY2009 was CAD 33.9 million. ICICI Bank Canada’s capital position continued

to be strong with a capital adequacy ratio of 19.9% at March 31, 2009.ICICI Bank

UK saw an increase of about USD 1.80 billion in retail term deposits during FY2009

due to which the proportion of retail term deposits in total deposits increased from

16% at March 31, 2008 to 58% at March 31, 2009. ICICI Bank UK’s customer base

increased from about 210,000 at March 31, 2008 to over 310,000 customers at

March 31, 2009.ICICI Bank UK continued to maintain liquidity of about USD 1.0

billion.

46
 After accounting for the gains on buyback of bonds and mark-to-market and

impairment provisions on the investment portfolio, ICICI Bank UK’s profit after tax

for FY2009 was USD 6.8 million. ICICI Bank UK’s capital position continued to be

strong with a capital adequacy ratio of 18.4% at March 31, 2009.

Insurance subsidiaries

ICICI Prudential Life Insurance Company (ICICI Life) maintained its market
ICICI BANK
leadership in the private sector with an overall market share of 11.8% based on

retail new business weighted received premium during April 2008-February 2009.
STATE
ICICIBANK
Life’sOFtotal
INDIA
premium increased by 13% to Rs.15,356 crore (US$ 3.0 billion) in

FY2009. ICICI Life’s renewal premium increased by 61%, reflecting the long term

sustainability of the business.ICICI Life’s unaudited New

ANK OF INDIA
Business Profit (NBP) in FY2009 was Rs. 1,004crore (US$ 198 million). Due to the

business set-up and customer acquisition costs, which are not amortised, and

reserving for actuarial

liability, ICICI Life’s statutory accounting results reduced the consolidated profit

after tax of ICICI Bank by Rs. 577 crore (US$ 114 million) in FY20091(compared to

Rs. 1,032 crore (US$ 203 million) in FY2008). The expense ratio has decreased

from 14.9% in FY2008 to 11.8% in FY2009. Assets held at March 31, 2009 were

Rs. 32,788 crore (US$ 6.5 billion) compared to Rs. 28,578 crore (US$ 5.6 billion) at

March 31, 2008.

ICICI Lombard General Insurance Company (ICICI General) maintained its

47
leadership in the private sector with an overall market share of 11.7% during April

2008-February 2009. ICICI General’s premiums increased 3% on a year-on-year

basis to Rs. 3,457 crore (US$ 682 million) in FY2009.ICICI General’s profit after tax

for FY2009 was Rs. 24 crore (US$ 5 million).

Consolidated profit after tax of the Bank increased by 18% from Rs. 636 crore (US$ 125

million) in Q4-2008 to Rs. 748 crore (US$ 147 million) in Q4-2009 and by 5% from Rs.

3,398 crore (US$ 670 million) in FY2008 to Rs. 3,577 crore (US$ 705 million) at FY2009.

Summary Profit and Loss Statement (as per unconsolidated Indian GAAP accounts)

Q4-2008 Q4-2009 FY-2008 FY-2009

Net interest income 2,079 2139 7304 8367

Non-interest income 2,362 1,674 8,811 7,604

1,928 1,343 6,627 ICICI

6,524 BANK
-Fee income

-Lease and other income 270 117 1,369 637

-Treasury income 164 443 815 214

Less:-

Operating expense 1,746 1,552 6,429 6,306

Expenses on direct market 358 53 1,543 529

agents (DMAs)

Lease depreciation 46 52 182 210

Operating profit 2,291 2,156 7,961 8,925

Less: Provisions 948 1,085 2,905 3,808

Profit before tax 1,343 1,071 5,056 5,117

Less: Tax 193 327 898 1,359

Profit after tax 1,150 744 4,158 3,758

48
 1. Net of premium amortisation on government securities of Rs. 240 crore in Q4-2008, Rs.

898 crore in FY2008, Rs. 162 crore in Q4-2009 and Rs. 725 crore in FY2009.

2. Represents commissions paid to direct marketing agents (DMAs) for origination of retail

loans. These commissions are expensed upfront.

3. Prior period figures have been regrouped/re-arranged where necessary.

Summary Balance Sheet Rs. crore

March 31,2008 March 31,2009

Assets

Cash & bank balances 38,041 29,966

Advances 225,616 218,311

Investments 111,454 103,058

Fixed & other assets 24,684 27,966

Total 399,795 379,301

Liabilities

Networth 46,470 49,533

49
 - Equity capital 1,113 1,113

- Reserves 45,357 48,420

Preference capital 350 350

Deposits 244,431 218,348

CASA ratio 26.1% 28.7%

Borrowings 86,399 92,805

STATE BANK
Other OF INDIA
liabilities 22,145 18,265 ICICI BANK

Total 399,795 379,301

ANK OF INDIA

All financial and other information in this press release, other than financial and

other information for specific subsidiaries where specifically mentioned, is on an

unconsolidated basis for ICICI Bank Limited only unless specifically stated to be on

a consolidated basis for ICICI Bank Limited and its subsidiaries. Please also refer

to the statement of audited unconsolidated, consolidated and segmental results

required by Indian regulations that has, along with this release, been filed with the

stock exchanges in India where ICICI Bank’s equity shares are listed and with the

50
 New York Stock Exchange and the US Securities Exchange Commission, and is

available on our website www.icicibank.com. Except for the historical information

contained herein, statements in this release which contain words or phrases such

as 'will', ‘expected to’, etc., and similar expressions or variations of such

expressions may constitute 'forward-looking statements'. These forward-looking

statements involve a number of risks, uncertainties and other factors that could

cause actual results, opportunities and growth potential to differ materially from

those suggested by the forward-looking statements. These risks and uncertainties

include, but are not limited to, the actual growth in demand for banking and other

financial products and services in the countries that we operate or where a material

number of our customers reside, our ability to successfully implement our strategy,

including our use of the Internet and other technology, our rural expansion, our

exploration of merger and acquisition opportunities, our ability to integrate recent or

future mergers or acquisitions into our operations and manage the risks associated

with such acquisitions to achieve our strategic and financial objectives, our ability to

manage the increased complexity of the risks we face following our rapid
STATE BANK OF INDIA ICICI BANK
international growth, future levels of impaired loans, our growth and expansion in

domestic and overseas markets, the adequacy of our allowance for credit and

investment losses, technological changes,

ANK OF INDIA
investment income, our ability to market new products, cash flow projections, the

outcome of any legal, tax or regulatory proceedings in India and in other

jurisdictions we are or become a party to, the future impact of new accounting

standards, our ability to implement our dividend policy, the impact of changes in

banking regulations and other regulatory changes in India and other jurisdictions on

51
us, including on the assets and liabilities of ICICI, a former financial institution not

subject to Indian banking regulations, the bond and loan market conditions and

availability of liquidity amongst the investor community in these markets, the nature

of credit spreads, interest spreads from time to time, including the possibility of

increasing credit spreads or interest rates, our ability to roll over our short-term

funding sources and our exposure to credit, market and liquidity risks as well as

other risks that are detailed in the reports filed by us with the United States

Securities and Exchange Commission. ICICI Bank undertakes no obligation to

update forward-looking statements to reflect events or circumstances after the date

thereof.

ANALYSIS OF THIS PROJECT

I have taken two bank one from Public Sector Second from Privet

Sector.

52
 STATE BANK OF INDIA ICICI BANK

ANK OF INDIA

Statement of problem

 SBI and ICICI want to know about the customer perception about the

investment.

 ➢ To find out what kind of service provide by the competitors in advance

product & investment

 policy.

53
  To find out the need of the customer and hence formulate the strategy to

level
STATE BANK OFthe
INDIA ICICI BANK

 economy in the society.

ANK OFINDIA
How the products & investments are helping the customer.

 To know the utility of the product & investment.

 To find out the need of the customer and introduce new product &

investment or facilitate new service in existing product .

 Icici bank are facing US recession that’s way his loose profitability.

 Due to this bad news icici bank want to mantain customer loyalty.

 To find out the need of the customer and introduce new product &

investment or facilitate new service in existing product .

 How to change customer perception

Research objectives

Summer Internship Project gives a practical exposure and helps in acquiring the on

road skills.

 What is difference between SBI AND ICICI.

54
  How to invest money in share and other (MF,ULIP,INSURENCE etc.)

ICICI BANK
STATE BANK OF INDIA

 First and foremost objective is to find out the reasons for using of Advance

Product from SBI or ICICI BANK.

ANK OF INDIA

 To find out the services that other bank given to their customer.

 To generate the leads through the survey.

 To sort out the prospective leads from the data I have collected through the

survey.

 To build the relationship with the customers and to follow up them, make

sure that they are satisfied with the products.

 To maintain good relationship with the corporate employees.

 To get more references from the customers and generate new leads by

following a

chain process.

 To place SBI Advance Product ahead of the competitors also ICICI.

55
  To find out the customer awareness on booming Advance Product market

and to find out the using patterns of the people.

 To know where should invest money.

STATE BANK OF INDIA ICICI BANK

 To make the customer aware of the benefits of the product and convince him

to go for SBI & ICICI’s Advance Product & Service.

ANK OF INDIA

Significance and scope

 The geographical scope of the study is restricted to Delhi & NCR only with

sample size of 2000 people.

 All the analysis and suggestions are based on the analysis of the both

primary and secondary data.

 There fore the scope of the study revolves around the following aspects:-

· Consumer perception towards Advance Product & Investment

· Consumer awareness about Advance Product scheme & Share and

its benefit.

· Aware the Bank about the customer problems, especially in case of

Share Marker.

56
 STATE BANK OF INDIA ICICI BANK

Research methodology

Research methodology is a methodology for collecting all sorts of information &

ANK OF INDIA
data pertaining to the subject in question. The objective is to examine all the issues

involved & conduct situational analysis. The methodology includes the overall

research design, sampling procedure & fieldwork done & finally the analysis

procedure. The methodology used in the study consistent of sample survey using

both primary & secondary data. The primary data has been collected with the help

of questionnaire as well as personal observation book, magazine;

journals have been referred for secondary data. The questionnaire has been

drafted & presented by the researcher himself.

 Sample Size:

 Sample of 2000 people was taken into study, and their data was collected

 Sampling Technique:

 To study the Project, a Simple Random Sampling technique is used.

 Data Collection:

57
  Collection of data is done by

 Secondary Data & through

 Questionnaire

STATE BANK
i.e.,OF INDIA data was collected through Questionnaire.
Primary ICICI BANK

Data Analysis:

 After data collection, I’m able to analyze customer’s views, ideas and

opinions related to Advance Product & investment and about SBI & ICICI .
ANK OF INDIA

 Data Interpretation:

 Interpretation of data is done by using statistical tools like Pie diagrams,

 Bar graphs, and also using quantitative techniques (by using these

techniques) accurate information is obtained.

 Classification & tabulation of data:

 The data thus collected were classified according to the categories,

counting sheets & the summary tables were prepared. The resultant tables

were one dimensional, two dimensional.

 Statistical tools used for analysis:

58
  Out of the total respondents, the respondents who responded logically were

taken into account while going into statistical details & analysis of data. The

tools that have been used for analyzing data & inference drawing are mainly

statistical tools like percentage, ranking, averages, etc.

ICICI BANK

As per questionnaire and market surveys I have find out different responses from

different people. According to their responses I analyze the findings and draw

certain remarks.

Analysis of data

GRAPHICAL REPRESENTATION OF DATA

Q1. On which bank you depend for your regular transaction?

( ) No. of People

SBI 60 % (1200)

ICICI 33 % (660)

HDFC 5% (100)

OTHER 2% (40)

TOTAL NO. OF PEOPLE 2000

59
 It has been observed that approximately 60% correspondents are using the service

of SBI for their daily transaction, around 33% of people are using ICICI Bank for

their transaction and only 5% & 2% of people are using HDFC & other Bank service

respectively Delhi & NCR. It also shows that SBI have the highest market position

in Delhi & NCR as per my sample.

Q2. Are you aware of products & services provided by SBI ?

STATE BANK OF INDIA ICICI BANK

YES 85% (1700)

NO 15% (300)
ANK OF INDIA
Total No. of People 2000

From the above data it is clear that most of the customers (around 85%) of Delhi &

NCR have the idea about the product & services of SBI, the rest 15% have the

idea about the product they are using. In this 15% most of the people are from

typical rural area (Farmers).

Q3. If yes are you aware of the advance products (Loan segments) of SBI?

60
 YES 95%(1900)

NO 5% (100)

TOTAL NO. OF PEOPLE 2000

It is clear that most of the people have the idea about the advance product of SBI.

Almost all the 95% people who have the idea about the advance product are the

STATE
user BANK
of SBIOFproduct
INDIA & service. ICICI BANK

Q4. Which bank you prefer for INVESTMENT?

SBI 60% (1200)

ANK OF INDIA

ICICI 37% (740)

HDFC 2% (40)

OTHER 1% (20)

TOTAL NO. OF PEOPLE 2000

According to my sample size 60% of people prefer SBI for investment, but some

people prefer ICICI, HDFC or OTHER Bank for investment.

61
 Q5. If you have two option ICICI or SBI for INVESTMENT money in equity

which bank you will prefer SBI or ICICI?

Most of the people said that they prefer SBI because of the transparency and

customer feel secured for any kind of investment product. SBI is a largest bank in

India.

STATE BANK OF INDIA ICICI BANK

Q.6 Which investment you have done either SBI or ICICI?

ANK OF INDIA
ULIP 47% (846)

LIFE INSURANCE 20% (360)

MF 15% (270)

EQUITY 10% (180)

OTHER 8% (144)

TOTAL NO. OF PEOPLE 1800

62
 From the sample size 85% of people are using the SBI ULIP product. From the

1800 people 47% of people took life insurance from SBI. 20% of people took MF ,

15% of people took from SBI. Some of the customer took 2 type of loan from SBI

like both car & educational loan and home & car loan. 10% of people took personal

loan.

Q7. What do you feel about the services providing by SBI and ICICI in

advance product?

SBI ICICI

SATISFACTORY 2% 1%

GOOD 55% 69%

STATE BANK OF INDIA

EXCELLENT 43% 30% ICICI BANK

From this it is clear that the service provide by SBI in its advance product is good in

between the customer. All of them satisfy with the product provide by SBI. 55% of
ANK OF INDIA
people said that the service provide by SBI is good & 43% said it is excellent & just

2% of people said that it is satisfactory. For ICICI 69% people said good & 30% is

excellent & Just 1% said satisfactory.

Q8. Which Bank you would like to choose for investment your money.

SBI 50%(1000)

ICICI 40%(800)

OTHER 10%(200)

TOTAL 2000

63
 According to my sample size 50%of people prefer SBI for INVESTMENT, but

some people prefer ICICI 40% and OTHER Bank 10% for invest money because

they think SBI is trustful bank.

Q9.Where do you want to invest your money?

REAL STATE 15%(300)

EQUITY 2%(40)

MUTUAL FUND 3%(60)

ULIPs 15%(300)

SEVING 5%(100)
STATE BANK OF INDIA ICICI BANK
FIXDEPOSIT 30%(600)

INSURENCE 30%(600)

OTHER 1%(20)

TOTAL 2000
ANK OF INDIA

Most of People in Delhi & NCR want to invest their money insurence,

fixdeposit, ulips and real state. just 2% people want to invest in SHARE

Market .Because lack of Knowledge about Share Market.

 Findings

 Suggestion & Recommendation

64
  Conclusion

PROJECT Findings :

 From this project it is found that SBI advance product having the 1st place

in the market at Delhi & NCR, there is a great opportunity to compete with

ICICI Bank & to retain its customer by fulfilling the requirement of customer

in SBI and ICICI advance product.

 It has been observed that approximately 85% correspondents are using

advance

 product of SBI and 15% are not using any type of advance product of SBI in

Delhi & NCR.

STATE
BANK
All OF
of INDIA ICICI BANK
SBI customers are satisfied with the services provided by the bank.

 Most of the customers at Delhi & NCR prefer to take loan from SBI.

Approximately 43% of advance product users said that the service of SBI in

advance product is excellent.

ANK OF INDIA
 A response from customer care is so clear & good.

 Many customers have no time to call customer care so that they are not

able to know about the service & features of SBI advance product.

 Government employees are more concern than private employees for

advance product.

 Biggest problem people don’t invest their money in Share due to lack

of knowledge

 People want securities that’s why choose SBI than ICICI bank

 REASON S FOR HIGHLY USE OF SBI ADVANCE PRODUCT :

65
  BIGGEST BANK OF INDIA

 ATTRACTIVE RATE OF RETORNS

 TRANSPARENCY

 SIMPLE & FAST PROCESSING

 QUICK PROCESSING

 REASON S FOR HIGHLY USE OF ICICI ADVANCE PRODUCT &

INVESTMENT :

 LESS PAPER WORK

 ATTRACTIVE ROI BUT LESS THAN SBI.

 TRANSPARENCY

 QUICK PROSESSING

STATE BANK OF INDIA ICICI BANK

 Suggestion & Recommendation

 Recommendation for both Bamk :

ANK OF INDIA

 Customer awareness programme is required so that more people should

attract towards advance product.

 Both should more concern about physical verification rather than phone

verification so it will avoid fraud or cheating.

 Advance product selling agents must not give any type of wrong information

regarding advance product.

 For the better service new offers would be require.

66
  SBI customer care should more concern about the fastest settlement of

customer

 problems. ICICI bank is already doing.

 Before deducting or charging any monetary charge SBI & ICICI must

consult with customer.

 Agents should be trained, well educated & proper trained to convince the

people about different advance product.

 It is the duty of the bank to disclose all the material facts regarding advance

product, like ROI, repayment period and any types of charges, etc.

 Special scheme should be implemented to encourage both customer and

agents.

 SBI and ICICI should more focus on Retaining existing customers.

 Both bank must focus on Segmentation based on customer knowledge

Product offering based on customer demand.

 SBI and ICICI must take feedbacks of customers regarding features &

services.

STATE BANK OF INDIA ICICI BANK

Suggestions given by the consumers at the time of survey:

 There is more time period for repayment of education loan.

( Namrata Das )
ANK OF INDIA
 Education loan should be providing to private college also which is not

under AICTE or any kind of University.

( Pinaki Bal )

 SBI should take steps to solve customer problems immediately.

( Gopinath Mahapatra )

67
  Agents should be trained, well educated & proper trained to convince the

people about different advance product.

(P.Anish Nath)

 Loan sanction date should be according to customer convenient.

(Joytirmaya Behera)

 A customer awareness programme should be taking place in rural area.

 Guarantee should give in investment money in share market

(Ritu singh)

STATE BANK OF INDIA ICICI BANK

Conclusion

From the analysis part it can be conclude that customers have a good respond
ANK OF INDIA
towards SBI advance products in Delhi & NCR . SBI is in 1st position having large

number of customers & providing good services to them. The bank has a wide

customer base, so the bank should concentrate on this to retain these customers.

In present scenario SBI is the largest advance product issuer in India. Within a very

short period of time the achievement made by SBI is excellent, what a normal bank

68
 cannot expect, but it is being done by SBI. It happens due to employee dedication

towards the organization, fastest growing Indian economy, & brand image.

To be the largest advance product issuer, SBI should focus on-

· Launch Innovative product

· Customized advance products

· Better customer services

· Fastest customers problem solving techniques

· Customer retention

Apart from all the above, SBI believe in providing good customer services to their

customers which is a key factor for success in future.

ICICI BANK
STATE BANK OF INDIA

Questionnaire

ANK OF INDIA

Name - _____________________________________

Occupation-__________________________________

Contact Detail -_______________________________

69
 Q. On which bank you depend for your regular transaction?

a) SBI

b) ICICI Bank

c) HDFC Bank

d) Other Bank, Specify (_____________)

Q. Are you aware of products & services provided by SBI and ICICI?

a) YES

b) NO

Q. If yes are you aware of the advance products (INVESTMENT) of

SBI and ICICI?

a) YES

b) NO

STATE BANK OF INDIA ICICI BANK

Q. Which bank you prefer for invest money?

a) SBI

ANK
b)OF INDIA
ICICI Bank

c) HDFC Bank

d) Other Bank, Specify (_____________)

70
 Q. If you prefer SBI or ICICI for INVESTMENT than what will you concern

before investment ?

__________________________________________________________________

______________

__________________________________________________________________

______________

__________________________________________________________________

______________

_____________________________________________________.

STATE BANK OF INDIA ICICI BANK

Q. Which product of SBI or ICICI you have used?

ANK
a)OF INDIA
Fixdiposit

b) Insurance

c) Mutual Fund

d) Equity

e) Other , Specify ( ______________ )

71
 Q. What do you feel about the services providing by SBI or ICICI in advance

product?

a) Both Bad

b) SBI good and ICICI NOT

c) ICICI Good or SBI NOT

d)Both good

Q. Which features you like most in investment segments of SBI and ICICI?

a) Various Product

b) Attractive ROI

c) Transparency

d) Simple & fast processing

e) Strong capital

f) Big bank

h) Any other feature, specify ( _____________ )

STATE BANK OF INDIA ICICI BANK

Q. Any suggestion you want to give for the betterment of SBI and ICICI

advance
ANK OF INDIA
product.

__________________________________________________________________

______________

72
 __________________________________________________________________

______________

__________________________________________________________________

______________

___________________________________________________________.

STATE BANK OF INDIA ICICI BANK

Bibliography:

ANK OF INDIA

Text Books:

73
Solomon, Michael R. (2002), Consumer Behavior: Buying, Having, Being. 5th Ed.

New Jersey: Prentice Hall

Wilson A. (2003), Marketing Research: An Integrated Approach

Naresh Ku. Malhotra, Marketing Research: An Applied Orientation, Fifth Edition

Internet:

www.google.co.in

www.sbi.com

www.sbi.co.in

www.bnet.com

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