summar internship report on sbi vs icici bank
DESCRIPTION
internshipTRANSCRIPT
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INDEX
CONTENT PAGE NO
Acknowledgement.............................................................................................. 3
Executive Summary............................................................................................ 4
Indian Bank Industry.......................................................................................... 5
Introduction of SBI............................................................................................. 7
Product & Services .............................................................................................. 12
Management ....................................................................................................... 14
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
ICICI BANK STATE BANK OF INDIA
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P& L Account....................................................................................................... 37
ICICI BANK CURENT.......................................................................................... 39
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
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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
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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.
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.
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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
STATE BANK OF INDIA ICICI BANK
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INDIAN BANKING INDUSTRY
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 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
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Introduction of SBI
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
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
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The bank is entering into many new businesses with strategic tie ups – Pension Funds,
General Insurance, Custodial Services, Private Equity, Mobile Banking, 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.
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
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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 employees. Some of
the training programes are attended by bankers from banks in 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 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.
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 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
STATE BANK OF INDIA ICICI BANK
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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 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,
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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
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The eight banking subsidiaries are:
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
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Demat Services
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 SCHEMESDABT SCHEMESBALANCED SCHEMESEXCHANGE 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 Insurance:Retirement
Solutions: SBI Life - Swadhan (Group): SBI Life -
Dhanaraksha Plus: SBI Life - Grameen Shakti, Health
STATE BANK OF INDIA ICICI BANK
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Products:
EQUITY ALL TYPES
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).
STATE BANK OF INDIA
RANK COMPANY NAME COUNTRY2008
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
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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 leadership position in their respective sectors.
STATE BANK OF INDIA ICICI BANK
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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, 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:
The first West German loan of DM 5 million from Kredianstalt obtained
1967:
STATE BANK OF INDIA ICICI BANK
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ICICI made its first debenture issue for Rs.6 crore, which was oversubscribed
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
1993:
Promoted TDICI - India's first venture capital company
STATE BANK OF INDIA ICICI BANK
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1994:
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
2001:
ICICI Bank became the first commercial bank from India to list its stock on NYSE.
ICICI Bank announces merger with Bank of Madura.
STATE BANK OF INDIA ICICI BANK
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The Boards of ICICI Ltd and ICICI Bank approved the merger of ICICI with ICICI Bank. 2002:
ICICI Ltd merged with ICICI Bank Ltd to create India's second largest bank in terms of
assets.
ICICI assigned higher than sovereign rating by Moody's. : ICICI Bank launched India's first
CDO (Collateralised Debt Obligation) Fund named Indian Corporate Collateralised Debt
Obligation Fund (ICCDO Fund).
"E Lobby", a self-service banking centre 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,
ATM-on-Wheels, India's first mobile ATM, launched in Mumbai.
2003:
STATE BANK OF INDIA ICICI BANK
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The first Integrated Currency Management Centre launched in Pune.
ICICI Bank announced the setting up of its first ever offshore branch in Singapore.
The first offshore banking unit (OBU) at Seepz Special Economic Zone, Mumbai, 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.
Temasek Holdings acquired 5.2% stake in ICICI Bank.
ICICI Bank became the market leader in retail credit in India.
2005:
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.
STATE BANK OF INDIA ICICI BANK
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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 Cards were
waived off.
ICICI Bank and Visa jointly launched mChq – a revolutionary credit card on the mobile
phone.
Private Banking Masters 2005, a nationwide Golf tournament for high networth clients of the
private banking division launched. This event is the largest domestic invitation amateur golf
event conducted in India.
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First Indian company to make a simultaneous equity offering of $1.8 billion in 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 enabled
smart card that allow banking transactions to be conducted on the field. A low-cost solution,
this became an effective delivery option for ICICI Bank's micro finance institution partners.
Financial counseling centre Disha launched. Disha provides free credit counseling, financial
planning and debt management services.
Bhoomi puja conducted for a regional hub in Hyderabad, Andhra Pradesh.
STATE BANK OF INDIA ICICI BANK
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ICICI Bank's USD 2 billion 3-tranche international bond offering was the largest bond offering
by an Indian bank.
Sangli Bank amalgamated with ICICI Bank.
ICICI Bank raised Rs 20,000 crore (approx $5 billion) from both domestic and international
markets through a follow-on public offer.
ICICI Bank's GBP 350 million international bond offering marked the inaugural deal in the
sterling market from an Indian issuer and also the largest deal in the sterling market from
Asia.
Launched India's first ever jewellery card in association with jewelry major Gitanjali Group.
ICICI Bank became the first bank in India to launch a premium credit card -- The Visa
Signature Credit Card.
Foundation stone laid for a regional hub in Gandhinagar, Gujarat.
Introduced SME Toolkit, an online resource centre, to help small and medium enterprises
start, finance and grow their business.
ICICI Bank signed a multi-tranche dual currency US$ 1.5 billion syndication loan agreement
in Singapore.
STATE BANK OF INDIA ICICI BANK
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ICICI Bank became the first private bank in India to offer both floating and fixed rate on car
loans, commercial vehicles loans, construction equipment loans and professional equipment
loans.
In a first of its kind, nation wide initiative to attract bright graduate students to pursue a 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:
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 deal in Asia (ex-Japan)
STATE BANK OF INDIA ICICI BANK
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in 2008 till date and the second largest deal in Asia (ex-Japan & Australia) since the
beginning of 2007.
BANK SEVIES
Personal Banking o Savings & Deposits
o Loans
o Cards
o Wealth management
Global Private Clients
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
STATE BANK OF INDIA ICICI BANK
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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
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
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o Performance Analyser
o Systematic Investing
o Compare Schemes
Private Equity Practice
INVESTOR RELATIONS
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
Investor FAQs
STATE BANK OF INDIA ICICI BANK
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SWOT ANALYSIS OF SBI
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.
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.
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SWOT ANALYSIS OF ICICI BANK
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.
[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
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4) 12 hrs. Banking services: Compared to other bank ICICI bank provides 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 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
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2) Less 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:
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
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3) Recruit professionally guided students: Bank & Insurance is a special non-aid
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.
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
STATE BANK OF INDIA
ICICI BANK
ICICI BANK
33
2) Net Services: ICICI Bank provides all kind of services on-line. There 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.
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
34
CORRENT SENERIO
SBI profit rises 46% in Q4 on higher other income
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
35
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.
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
36
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.
STATE BANK OF INDIA ICICI BANK
37
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 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
mths12 mths 12 mths 12 mths 12 mths
Capital and Liabilities:
38
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
Deposits367,047.5
3380,046.06 435,521.09 537,403.94 742,073.13
Borrowings 19,184.31 30,641.24 39,703.34 51,727.41 53,713.68
Total Debt386,231.8
4410,687.30 475,224.43 589,131.35 795,786.81
Other Liabilities & Provisions 49,578.89 55,538.17 60,042.26 83,362.30 110,697.57
Total Liabilities459,882.8
7493,869.56 566,565.25 721,526.31 964,432.08
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
39
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
Contingent Liabilities131,325.4
0191,819.34 259,536.57 736,087.59 614,603.47
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
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
40
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
41
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
• Profit before tax of Rs. 5,117 crore for the year ended March 31, 2009 compared to Rs.
5,056 crore for the year ended March 31, 2008
• 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
• 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$997 million) for the year ended March 31,
2008 (FY2008).
STATE BANK OF INDIA ICICI BANK
42
• Profit after tax for FY2009 was Rs. 3,758 crore (US$ 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.
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.
• 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$265 million) for the quarter ended March 31,
2008 (Q4-2008),primarily due to lower level of fee income at Rs. 1,343 crore (US$ 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
STATE BANK OF INDIAICICI BANK
43
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 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 crore (US$ 4.9
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
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
STATE BANK OF INDIA ICICI BANK
44
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.
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 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.
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.
STATE BANK OF INDIA
45
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 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. ICICI Life’s total 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
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
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).
STATE BANK OF INDIA
ICICI BANK
46
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
-Fee income 1,928 1,343 6,627 6,524
-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
agents (DMAs)
358 53 1,543 529
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
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.
ICICI BANK
47
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
- Equity capital 1,113 1,113
- Reserves 45,357 48,420
48
Preference capital 350 350
Deposits 244,431 218,348
CASA ratio 26.1% 28.7%
Borrowings 86,399 92,805
Other liabilities 22,145 18,265
Total 399,795 379,301
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 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
STATE BANK OF INDIA ICICI BANK
49
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 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,
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 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
STATE BANK OF INDIA ICICI BANK
50
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.
Statement of problem
SBI and ICICI want to know about the customer perception about the investment.
STATE BANK OF INDIA ICICI BANK
51
➢ To find out what kind of service provide by the competitors in advance product &
investment
policy.
To find out the need of the customer and hence formulate the strategy to level the
economy in the society.
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
STATE BANK OF INDIA ICICI BANK
52
Summer Internship Project gives a practical exposure and helps in acquiring the on road
skills.
What is difference between SBI AND ICICI.
How to invest money in share and other (MF,ULIP,INSURENCE etc.)
First and foremost objective is to find out the reasons for using of Advance Product
from SBI or ICICI BANK.
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.
STATE BANK OF INDIAICICI BANK
53
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.
To make the customer aware of the benefits of the product and convince him to go for
SBI & ICICI’s Advance Product & Service.
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.
STATE BANK OF INDIA ICICI BANK
54
Research methodology
Research methodology is a methodology for collecting all sorts of information & 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:
STATE BANK OF INDIA ICICI BANK
55
Collection of data is done by
Secondary Data & through
Questionnaire
i.e., Primary data was collected through Questionnaire.
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 .
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:
STATE BANK OF INDIA ICICI BANK
56
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.
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
ICICI BANK
57
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 ?
YES 85% (1700)
NO 15% (300)
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?
YES 95%(1900)
NO 5% (100)
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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 user of SBI product &
service.
Q4. Which bank you prefer for INVESTMENT?
SBI 60% (1200)
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.
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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.
Q.6 Which investment you have done either SBI or ICICI?
ULIP 47% (846)
LIFE INSURANCE 20% (360)
MF 15% (270)
EQUITY 10% (180)
OTHER 8% (144)
TOTAL NO. OF PEOPLE 1800
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
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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%
EXCELLENT 43% 30%
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 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
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.
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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)
FIXDEPOSIT 30%(600)
INSURENCE 30%(600)
OTHER 1%(20)
TOTAL 2000
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
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
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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.
All of 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.
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 :
BIGGEST BANK OF INDIA
ATTRACTIVE RATE OF RETORNS
TRANSPARENCY
SIMPLE & FAST PROCESSING
QUICK PROCESSING
REASON S FOR HIGHLY USE OF ICICI ADVANCE PRODUCT & INVESTMENT :
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LESS PAPER WORK
ATTRACTIVE ROI BUT LESS THAN SBI.
TRANSPARENCY
QUICK PROSESSING
Suggestion & Recommendation
Recommendation for both Bamk :
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.
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.
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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.
Suggestions given by the consumers at the time of survey:
There is more time period for repayment of education loan.
( Namrata Das )
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 )
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)
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Conclusion
From the analysis part it can be conclude that customers have a good respond 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 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.
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Questionnaire
Name - _____________________________________
Occupation-__________________________________
Contact Detail -_______________________________
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
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Q. If yes are you aware of the advance products (INVESTMENT) of
SBI and ICICI?
a) YES
b) NO
Q. Which bank you prefer for invest money?
a) SBI
b) ICICI Bank
c) HDFC Bank
d) Other Bank, Specify (_____________)
Q. If you prefer SBI or ICICI for INVESTMENT than what will you concern before
investment ?
__________________________________________________________________________
______
__________________________________________________________________________
______
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__________________________________________________________________________
______
_____________________________________________________.
Q. Which product of SBI or ICICI you have used?
a) Fixdiposit
b) Insurance
c) Mutual Fund
d) Equity
e) Other , Specify ( ______________ )
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
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b) Attractive ROI
c) Transparency
d) Simple & fast processing
e) Strong capital
f) Big bank
h) Any other feature, specify ( _____________ )
Q. Any suggestion you want to give for the betterment of SBI and ICICI advance
product.
__________________________________________________________________________
______
__________________________________________________________________________
______
__________________________________________________________________________
______
___________________________________________________________.
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Bibliography:
Text Books:
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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