S S..##OO TTOOPPIICC PPAA**)) ##OO.. + + TTIITTLL) ) OO! ! PPRROO,,))CCTT -- CC))RRTTII!!IICCAATT)) //))CCLLAARRAATTIIOO## 0 0 AACC11##OO22LL))//**))33))##TT 4 4 AABBSSTTRRAACCTT 5
5 II##TTRROO//&&CCTTIIOO# # OO! ! SSBBI I BBAA##1 1 6
6 II##TTRROO//&&CCTTIIOO# # OO! ! IICCIICCI I BBAA##1 1 7
7 OOBB,,))CCTTII88) ) OO! ! TT99) ) SSTT&&//:: ;
; RR))SS))AARRCC9 9 33))TT99OO//OOLLOO**:: +
+<< LLII33IITTAATTIIOO# # OO! ! TT99) ) SSTT&&//:: +
+++ LLIITT))RRAATT&&RR) ) RR))88II))22 +
+-- //AATTA A COCOLLLL))CCTTIIOO## +
+ AA##AALL::SSIIS S AA##/ / II##TT))RRPPRR))TTAATTIIOO## +
+00 !!II##//II##**S S AA##/ / CCOO##CCLL&&SSIIOO## +
+44 RR))!!))RR))##CC)) +
+55 ==&&))SSTTIIOO##AARRRRII))
C)RTI!ICAT) C)RTI!ICAT)
9his is to certify that the pro%ect report entitled “A comparative study of the financial 9his is to certify that the pro%ect report entitled “A comparative study of the financial comparison of SBI and ICICI bank” is submitted by $an%u kumari !ais'al in fulfillment comparison of SBI and ICICI bank” is submitted by $an%u kumari !ais'al in fulfillment of the reuirement for the a'ard of de6ree of B(Com "A)F# in S(*( !ain 6irl5s colle6e of the reuirement for the a'ard of de6ree of B(Com "A)F# in S(*( !ain 6irl5s colle6e under ,a6aland +niversity Isa record of
under ,a6aland +niversity Isa record of the candidate5s o'n 'ork carried out under mythe candidate5s o'n 'ork carried out under my supervision( 9he matter embodied in this pro%ect is ori6inal and not used for any other supervision( 9he matter embodied in this pro%ect is ori6inal and not used for any other purpose(
purpose(
*
*aattee:: SSuuppeerrvviissoorr::
; ;
/)CLARATIO# /)CLARATIO#
9his is to certify that the pro%ect report entitled “A comparative study of the financial 9his is to certify that the pro%ect report entitled “A comparative study of the financial comparison of SBI and ICICI bank” is submitted in fulfillment of the reuirement for comparison of SBI and ICICI bank” is submitted in fulfillment of the reuirement for th
the e a'a'arard d of of dede6r6ree ee of of B(B(CoCom m "A"A)F# )F# in in S(*S(*( ( !ai!ain n 6i6irl5rl5s s cocolllle6e6e e unundeder r ,a,a6a6alalandnd +niversity8 <umami8 ,a6aland( 9he 'ork is ori6inal and due ackno'led6ement has +niversity8 <umami8 ,a6aland( 9he 'ork is ori6inal and due ackno'led6ement has been made in the te=t
been made in the te=t to all other material uto all other material used(sed(
*
*aattee:: ,,aamme e oof f SSttuuddeenntt: : $$aann%%u u &&uummaarri i !!aaiiss''aall
Approved by: Approved by: "Supervisor# "Supervisor# / / AC1#O2L)/*)3)#T AC1#O2L)/*)3)#T
9he success and final outcome of this pro%ect reuired a lot of 6uidance and assistance from many people and I am e=tremely fortunate to have 6ot all this alon6 the completion of my pro%ect 'ork( >hatever I have is only due to such 6uidance and assistance and I 'ill not for6et to thank them(
I respect and thank iss Ami !ain8 for 6ivin6 me an opportunity to do the pro%ect 'ork of “A comparative study of the financial comparison of SBI and ICICI bank” and providin6 us all support and 6uidance 'hich made me complete this pro%ect on time( I am e=tremely 6rateful to him for providin6 such 6reat support and 6uidance thou6h he had busy schedule( I am e=tremely 6rateful to all those person 'ho have positively helped me and customers 'ho respond my uestionnaire8 around 'hom the 'hole pro%ect cycle revolves(
,ame : $an%u &umari !ais'al $oll ,o( 33
,(+ $oll ,o( C-./.01123
3
Bankin6 Sector plays an important role in economic development of a country( 9he bankin6 system of India is featured by a lar6e net'ork of bank branches8 servin6 many kinds of financial services of the people( 9he State Bank of India8 popularly kno'n as SBI is one of the leadin6 bank of public sector in India( SBI has .3 <ocal -ead ?ffices and @ onal ?ffices located at important cities throu6hout the country( ICICI Bank is second lar6est and leadin6 bank of private sector in India( 9he Bank has ;8@// branches and 2811 A9s in India( 9he purpose of the study is to e=amine the financial performance of SBI and ICICI Bank8 public sector and private sector respectively( 9he research is descriptive and analytical in nature( 9he data used for the study 'as entirely secondary in nature( 9he present study is conducted to compare the financial performance of SBI and ICICI Bank on the basis of ratios such as credit deposit8 net profit mar6in etc( 9he period of study taken is from the year ;1.17.. to ;1.37.@( 9he study found that SBI is performin6 'ell and financially sound than ICICI Bank but in conte=t of deposits and e=penditure ICICI bank has better mana6in6 efficiency than SBI( Based on the study8 it can be said that SBI have an e=tensive operation than ICICI Bank(
@
+ T$ble +.+ Credit deposit r$tio !i%. no. +.+ Credit deposit r$tio
- T$ble +.- Interest e>penses to tot$l e>penses !i%.no.+.- Interest e>penses to tot$l e>penses T$ble +. Interest income to tot$l income
!i%.no.+. Interest income to tot$l income 0 T$ble +.0 Other income to tot$l income
!i%.no.+.0 Other income to tot$l income 4 T$ble?+.4 #et profit m$r%in
!i%. no.+.4 #et profit m$r%in 5 T$ble no.+.5 #et @orth r$tio
!i%.no.+.5 #et @orth r$tio 6 T$ble +.6 *ro@th of profit
!i%.no.+.6 *ro@th of profit
7 T$ble +.7 *ro@th in tot$l income !i%.no.+.7 *ro@th in tot$l income ; T$ble +.; Tot$l e>penditure
!i%.no.+.; Tot$l e>penditure +< T$ble +.+<?Tot$l $d'$nces
!i%.no.+.+< Tot$l $d'$nces ++ T$ble +.++ Tot$l deposits
!i%. no.+.++ Tot$l deposits T$ble
LIT)RAT&R) R)8I)2
.( *r( !ayesh Pravinchandra Dora8 BBA8(Com8 Ph(*( E,ovember ;1./ made a comparative study of financial performance of Bank of Baroda and Pun%ab ,ational
Bank from ;11717;1..7.; and found that Pun%ab ,ational Bank is performin6 better than Bank of Baroda(
;( Ash'ini &umar ishra et( Al ";1./# concluded that private sector banks are at the top of the list 'ith their performance in terms of soundness bein6 best and public sector bank 'ill head to'ards conver6ence faster than private sector banks(
/( *r( &( adhusudhana $ao8 Associate professor8 <( university8 4reen fields8 Andhra Pradesh E!une ;1.3 made a comparative analysis on the performance of state Bank of India and -*FC from ;11710 to ;1.;7./ and found that State Bank of India is performin6 'ell and sound than -*FC but in conte=t of deposits and e=penditure both State bank of India and -*FC has better mana6in6 efficiency(
3( Poo%a Sharma8 -antala8 Assistant Professor8 *epartment of BA8G7a= 4roup of Institutions AmbalaEFebruary ;1.3 made a comparative analysis of the financial performance of ICICI bank and State Bank of India from ;11710 to ;1.;7./ and found that State Bank of India is performin6 better than ICICI bank as it is able to 6enerate more loan from its deposit to its customers(
9he bankin6 industry plays an important role in the economic development of a country( It supplies the lifeblood7money that supports and fosters 6ro'th in all the industries( 4ro'th of the bankin6 sector is measured by the increase in the number of banks5 branches8 deposits8 credit8 etc( In analyHin6 the bankin6 sector8 it indicates the
direction in 'hich the country5s economy is movin6( India has about commercial banks includin6 /. private banks8 ; public sector banks8 and / forei6n banks and in total8 @/8111 bank branches8 and .8111 A9s are servicin6 the nation( Public sector banks dominate the se6ment 'ith @ per cent of the total assets of the industry held by
them( State Bank of India "SBI# and ICICI Bank are the t'o lar6est banks in India in public and private sector(
St$te B$n of Indi$ (SBI"
SBI is the oldest bank of India and India5s lar6est commercial bank8 'hich is a 6overnment8 o'ned bank 'as established in .12( 9he bank provides a 'ide array of bankin6 products throu6h their effective net'ork not only in India but also overseas(
9he bank has about .8;22 branches8 includin6 38;3 branches of its five Associate Banks8 and is also accountable for one7fifth of the loans of India( It has about @11 A9s across the nation(
ICICI B$n
9his is the second lar6est private sector bank in India havin6 ;8@@; branches and 8331 A9s spread across the country( It is amon6 the top commercial banks of India providin6 a 'ide ran6e of bankin6 services throu6h varied delivery channels( Besides offerin6 hi6h7end bankin6 facilities such as Internet bankin68 9ele Bankin68 and obile Bankin68 ICICI also plays a pivotal role in the domains of investment bankin68 venture capital and asset mana6ement8 and life and non7life insurance( 9he bank spreads its 'in6s in . countries across the 'orld includin6 +&8 Canada8 $ussia8 and others(
2
St$tement of the problem
Performance and efficiency of commercial bank are the key element of efficiency and efficacy of countries financial system( 9he broad ob%ective of the bankin6 sector
reforms in India has been to increase efficiency and profitability of the banks( Prior to bankin6 reforms8 the industry 'as a near monopoly dominated by public sector bank(
9herefore this study attempts to apply profitability ratio8 solvency ratio and mana6ement efficiency ratio on SBI and ICICI Bank in order to compare their efficiency and solvency position(
OB,)CTI8) O! T9) ST&/:
ii( 9o kno' and compare the profitability position of State Bank of India and ICICI Bank(
iii( 9o kno' and compare the mana6erial efficiency of State Bank of India and ICICI Bank(
iv( 9o offer findin6s and su66estions to enhance the financial performance of State Bank of India and ICICI Bank(
0
R)S)ARC9 3)T9O/OLO*: 4.+ Rese$rch /esi%n
*escriptive $esearch *esi6n is used for the study and it is essentially a fact7findin6 approach( It aims to e=plain the characteristics of an individual or 6roup characteristics and to determine the freuency 'ith the same thin6s occurs(
4.- S$mple /esi%n
*eliberate samplin6 techniue is used for the study( 9his samplin6 method involves purposive or deliberate selection of particular units of the 'orld for constitutin6 a
sample that represents the population( 4. Selection of the S$mple &nits
Bankin6 sector in India is considered one of the fastest 6ro'in6 financial institutions in the 'orld( +sin6 purposive sample8 State Bank of India and ICICI Bank 'ere selected as the sample units for the study( 9he sample units selected 'ere considered one of the successful units in the bankin6 sector(
4.0 /$t$ Collection
9he data 'ere collected throu6h annual report from sources that are secondary in nature such as internet8 ma6aHines8 'ebsites8 books8 and %ournals(
4.4 Period of stud
9his study covers a period of five years8 i(e(8 from ;1.17.. to ;1.37.@ 4.5 Tools Applied
9he data collected 'ere moderated for the study( 9he ma%or tools applied for the analysis of the data are ratios8 percenta6es8 and t7test(
.1
9he pro%ect “A Study on comparative financial performance of SBI and ICICI Bank” 'as undertaken durin6 the period of 3@ days as a part of my internal e=amination(
++
*ue to constraints of time and resources8 the study is likely to suffer from certain limitations( Some of these are mentioned here under so that the findin6s of the study may be understood in a proper perspective( 9he limitations of the study are:
• 9he study is based on the secondary data and the limitation of usin6 secondary
data may affect the results(
• 9he secondary data 'as taken from the annual reports of the SBI and ICICI
Bank( It may be possible that the data sho'n in the annual reports may be 'indo' dressed 'hich does not sho' the actual position of the banks(
Financial analysis is mainly done to compare the 6ro'th8 profitability and financial soundness of the respective banks by dia6nosin6 the information contained in the financial statements( Financial analysis is done to identify the financial stren6ths and 'eaknesses of the t'o banks by properly establishin6 relationship bet'een the items of Balance Sheet and Profit <oss Account( It helps in better understandin6 of banks financial position8 6ro'th and performance by analyHin6 the financial statements 'ith various tools and evaluatin6 the relationship bet'een various elements of financial statements(
!OR T9IS P&RPOS) T9) !OLLO2I#* PARA3)T)RS 9A8) B))# ST&/I)/
.# Credit deposit ratio(
;# Interest e=penses to total e=penses( /# Interest income to total income( 3# ?ther income to total income( @# ,et profit mar6in(
2# ,et 'orth ratio(
# Percenta6e chan6e in net profit( # Percenta6e chan6e in total income( 0# Percenta6e chan6e in total e=penditure( .1# Percenta6e chan6e in deposit(
..# Percenta6e chan6e in advances(
C$G*I9 *GP?SI9 $A9I?:
Credit deposit ratio is the proportion of loan asset created by a bank from the deposit received( Credits are the loan and advances 6ranted by the bank( In other 'ords8 it is the amount lend by the bank to a person or an or6aniHation 'hich is recovered later on8 interest is char6ed from the borro'er(
TABL) +.+ ? CR)/IT /)POSIT RATIO
"I, PG$CG,9#
:)AR SBI ICICI
-<+<?++ (@ 3(00 -<++?+- 3(0 0.(33 -<+-?+ /(@2 01(13 -<+?+0 2(/; (. -<+0?+4 (@1 0;(;/ 3)A# 2(.3 0(/1; C*R .(.0 (@.
Source: Annual $eports of SBI and ICICI from ;1.17.. to ;1.37.@ !I*. #O. +.+? CR)/IT /)POSIT RATIO
.3
9able .(. depicts that over the course of five financial periods of study the mean of Credit *eposit $atio in ICICI 'as hi6her "0(/1;J# than in SBI "2(.3J#( But the
Compound 4ro'th $ate in SBI lo'ers .(.0J than in ICICI "(@.J#( In case of SBI the credit deposit ratio 'as hi6hest in ;1.37.@ and lo'est in ;1.;(./( But in case of ICICI Credit *eposit $atio 'as hi6hest in ;1.37.@and lo'est in ;1.17..( 9his sho's that ICICI Bank has created more loan assets from its deposits as compared to SBI(
I#T)R)ST )P)#S)S TO TOTAL )P)#S)S?
Interest G=penses to 9otal G=penses reveals the e=penses incurred on interest in proportion to total e=penses( Banks accepts deposits from savers and pay interest on these accounts( 9his payment of interest is kno'n as interest e=penses( 9otal e=penses include the amount spent in the form of staff e=penses8 interest e=penses8 overhead e=penses and other operatin6 e=penses etc(
TABL) +.-? I#T)R)ST )P)#S)S TO TOTAL )P)#S)S
"I, PG$CG,9#
:)AR SBI ICICI
-<+<?++ 2.(@ 22(./@ -<++?+- 2/(; 23(.1 -<+-?+ 2.(2; 21(. -<+?+0 @3(0/ 21(1 -<+0?+4 @(01 2@(.0 3)A# @0(0 2@(/2 C*R 72(/ 7.(32
Source: Annual $eports of SBI and ICICI from ;1.17.. to ;1.37.@(
.@
9he table .(; sho's that the ratio of interest e=penses to total e=penses in SBI 'as hi6hly volatile it increased from 2.(@ per cent to 2/(; per cent durin6 the period ;1.17.. to ;1..7.;( After'ards it 'as decreased till ;1./7.3 and then a6ain increased to @(01 per cent( 9he ratio of interest e=penses to total e=penses in ICICI 'as also decreased from 22(./@ per cent to 23(.1 per cent durin6 the period ;1.17.. to ;1..7.;( It remain stable from ;1..7.; to ;1.;7;1./ but Further it 'as increased to 2@(.0 per cent in ;1.37.@( It has been found that the share of interest e=penses in total e=penses 'as hi6her in case of SBI as compared to ICICI8 'hich sho's that people preferred to invest their savin6s in SBI than ICICI(
+5
Interest Income to 9otal Income sho's the proportionate contribution of interest income in total income( Banks lend money in the form of loans and advances to the borro'ers and receive interest on it( 9his receipt of interest is called interest income( 9otal income includes interest income8 non7interest income and operatin6 income(
TABL) +.?I#T)R)ST I#CO3) TO TOTAL I#CO3) I# SBI A#/ ICICI "I, PG$CG,9#
:)AR SBI ICICI
-<+<?++ /(0 (2. -<++?+- /(31 0(;0 -<+-?+ ;(@ (01 -<+?+0 3(30 (@. -<+0?+4 (.; 1(0; 3)A# 3(30 (3 C*R @(13 3(;2
Source: Annual $eports of SBI and ICICI from ;1.17.. to ;1.37.@(
+6
9he table .(/ represents that the ratio of interest income to total income in SBI and ICICI both is uite stable and volatile over the years( 9he 6ro'th rate of SBI is @(13 'hile that of ICICI is 3(;2( 9hus8 the proportion of interest income to total income in SBI 'as hi6her than that of ICICI8 'hich sho's that people preferred SBI to take loans and advances(
. OT9)R I#CO3) TO TOTAL I#CO3)
?ther income to total income reveals the proportionate share of other income in total income( ?ther income includes non interest income and operatin6 income( 9otal income includes interest income8 non interest income and operatin6 income(
TABL) +.0?OT9)R I#CO3) TO TOTAL I#CO3) I# SBI A#/ ICICI
"I, PG$CG,9#
:)AR SBI ICICI
-<+<?++ .2(.1 ;;(/ -<++?+- .2 ;1(1 -<+-?+ . ;;(10 -<+?+0 .2 ;.(3 -<+0?+4 .. .0(1 3)A# .@(;; ;.(33 C*R 7/.(2 7.3(
Source: Annual $eports of SBI and ICICI Bank from ;1.17.. to ;1.37.@
.0
9he table .(3 sho's that the ratio of other income to total income 'as decreased from .2(.1 per cent in ;1.17.. to ..(11 per cent in ;1.37.@ in case of SBI( -o'ever8 the share of other income in total income of ICICI 'as also decreased from ;;(/ per cent in ;1.17.. to .0(1 per cent ;1.37.@( 9he table sho's that the ratio of other income to total income 'as relatively hi6her in ICICI ";.(33J# as compared to SBI ".@(;;J# durin6 the period of study(
-<
,et Profit ar6in reveals the financial results of the business activity and efficiency of mana6ement in operations( 9he table @( sho's the net profit mar6in in SBI and ICICI durin6 the Period ;1.17.. to ;1.37.@(
TABL)?+.4?#)T PRO!IT 3AR*I# I# SBI A#/ ICICI
"I, PG$CG,9#
:)AR SBI ICICI
-<+<?++ .;(23 ..(. -<++?+- ./(.. ..(3@ -<+-?+ .1(@3 ./(23 -<+?+0 (@@ .(@; -<+0?+4 0(/ .(3@ 3)A# .1(0. .3(/ C*R ;/(1; 3(
Source: Annual $eports of SBI and ICICI from ;1.17.. to ;1.37.@
-+
9he table .(@ reveals that the ratio of net profits to total income of ICICI 'as varied from ..(. per cent to .(3@ percent 'hereas in case of SBI it is not stable( It increased to ./(.. percent from .;(23 percent in ;1..7.; then further decreased to .1(@3 percent in ;1.;7./ and (@@ percent in ;1./7.3 and finally increased to 0(/ percent in ;1.37.@ durin6 the period of @ years of study( -o'ever8 the net profit mar6in 'as hi6her in ICICI ".3(/J# as compared to SBI ".1(0.J# durin6 the period of study( But it 'as continuously decreased from ;1.17.. to ;1.37.@ in ICICI( 9hus8 the ICICI has sho'n comparatively lo'er operational efficiency than SBI(
--#)T 2ORT9 RATIO?
,et 'orth $atio is used for measurin6 the overall efficiency of a firm( 9his ratio establishes the relationship bet'een net profit and the proprietor5s funds(
TABL) +.5 #)T 2ORT9 RATIO
"I, PG$CG,9#
:)AR SBI ICICI
-<+<?++ ./(1 (03 -<++?+- .@(3 (@ -<+-?+ ./(0. (0 -<+?+0 .;(3 0(/@ -<+0?+4 .3(/2 .1(1 3)A# .3(.. ( C*R 3( .0(2
Source: Annual $eports of SBI and ICICI from ;1.17.. to ;1.37.@ !I*.#O.+.5 #)T 2ORT9 RATIO
It is clear from the table .(2 that the net 'orth ratio of SBI 'as increased from ./(1 per cent to .3(/2 per cent durin6 ;1171 to ;1..7.;8 and decreased in ;1107.1 and
;1.17;1..( >hereas the ratio 'as increased from (03 per cent to .1(1 percent in ICICI( 9he table sho'ed that the net 'orth ratio 'as hi6her in SBI ".3(..J# as compared to ICICI "(J# durin6 the period of study8 'hich revealed that SBI has utiliHed its resources more efficiently as compared to ICICI(
*RO2T9 O! PRO!IT?
,et profit $atio is used for measurin6 the profitability of the firm( It is calculated by dividin6 net profit by net sales multiplied by .11( It establishes the relationship bet'een the net profit and sales(
TABL) +.6 *RO2T9 O! PRO!IT I# SBI A#/ ICICI
"I, C$?$GS#
:)AR SBI ICICI
PRO!IT D C9A#*) PRO!IT D C9A#*)
-<+<?++ 2;0 ,I<< 3.@(/ ,I<< -<++?+- 0.;. /@(@ /@(./ 70(2. -<+-?+ 0.2. 30 31;3(0 (.1 -<+?+0 ;2@ 70( @.@.(/ ;(0 -<+0?+4 ..1 3; 232@(;2 ;@(@1 3)A# 002(2 3..(30 C*R /(0 @@(30
Source: Annual $eports of SBI and ICICI from ;1.17.. to ;1.37.@
-0
9he table .( hi6hli6hts that the mean value of net profit 'as hi6her in SBI "$s( 002(2 crores# as compared to that in ICICI "$s( 3..(0 crores# durin6 the period of study( Further the 6ro'th rate of ,et Profits 'as also hi6her in SBI "/(0J# than that in ICICI "@@(30J# durin6 the study period( 9he table also sho's that the annual 6ro'th rate of profit in SBI 'as hi6hest in the year ;1.; ?./ and 'as ne6ative "70(J# in the year ;1./7.3( In ICICI8 the annual 6ro'th rate of profit 'as hi6hest in the year ;1./7 .3";(0J# and 'as ne6ative in the year ;1..7.; "70(2.J#(
TOTAL I#CO3)?
9he total income indicates the rupee value of the income earned durin6 a period( 9he hi6her value of total income represents the efficiency and 6ood performance(
TABL) +.7 *RO2T9 I# TOTAL I#CO3) O! SBI A#/ ICICI
"I, C$?$GS#
:)AR SBI ICICI
I#CO3) DC9#A*) I#CO3) DC9A#*)
-<+<?++ @/3(3 ,I<< /022(.0 ,I<< -<++?+- 230( /. /0;.1(/. 7.(.@ -<+-?+ @02;(1 .;(/ /;000(/2 7.@( -<+?+0 02/;0(3@ .;(12 //1;(02 1(;@ -<+0?+4 .;1;(01 ;@(3 3.3@1(@ ;@(; 3)A# @0(@ /;;(..3 C*R .1(.@ 3(30
Source: Annual $eports of SBI and ICICI from ;1.17.. to ;1.37.@(
-5
9he table .(0 hi6hli6hts that the mean value of total income 'as hi6her in SBI "$s( 8@0(@ Crores# as compared to that in ICICI "$s( /;;(..3 crores# durin6 the period of study( -o'ever the rate of 6ro'th re6ardin6 total income 'as hi6her in SBI
".1(.@ J# than in ICICI "3(30 J# durin6 the period of study
-6 TOTAL )P)#/IT&R)?
9he total e=penditure reveals the proportionate share of total e=penditure spent on the development of staff8 interest e=pended and other overheads(
TABL) +.; TOTAL )P)#/IT&R) O! SBI A#/ ICICI
"I, C$?$GS#
:)AR SBI ICICI
)P)#/IT&R ) DC9#A* ) )P)#/IT&R ) DC9A#* ) -<+<? ++ @.2.0(2;; ,I<< /@@10(3 ,I<< -<++? +-2/@(@@ /1(3 /@3@;(. 1(.2 -<+-? + 202(1; .3(1. ;03(/ 7.(; -<+? +0 0@0(.; .@(/ ;0/.(@ 7/(@0 -<+0? +4 .10.2(00 ;;(/ /30@(@1 ;@(;@ 3)A # 3(12 /;@1(2. C*R ...(@; 7.(3
Source: Annual $eports of SBI and ICICI from ;1.17.. to ;1.37.@(
!I*.#O.+.; TOTAL )P)#/IT&R) O! SBI A#/ ICICI
9he table .(.1 discloses that the mean value of total e=penditure 'as hi6her in SBI "$s( 83(12 crores# as compared to that in ICICI "$s( /;@1(2. crore# durin6 the period of study( But the rate of 6ro'th re6ardin6 e=penditure in ICICI 'as "7.(3 J# than that
in SBI "...(@;J# durin6 the same period( It is clear that ICICI is successful in decreasin6 their total e=penditure as compared to SBI( 9he table also hi6hli6hts that the annual 6ro'th rate of e=penditure in SBI 'as hi6hest "/1(13# in the year ;1..7.; and 'as lo'est ".3(1.# in the year ;1.;7./( In ICICI8 the annual 6ro'th rate of e=penditure 'as ne6ative in the year ;1.;7./ and ;1./7.3 i(e( "7.(;1# and "7/(@0# respectively( -ence it is clear that ICICI is more efficient as compared to SBI in terms of mana6in6 e=penditure(
A/8A#C)S?
Advances are the credit facility 6ranted by the bank( In other 'ords it is the amount borro'ed by a person from the Bank( It is also kno'n as “Credit 6ranted 'here the‟
money is disbursed and recovery of 'hich is made later on(
TABL) +.+<? TOTAL A/8A#C)S O! SBI A#/ ICICI
"I, C$?$GS#
:)AR SBI ICICI
A/8A#C)S DC9#A*) A/8A#C)S DC9A#*)
-<+<?++ 3.22(;1 ,I<< ;;@2.2(1 ,I<< -<++?+- @3;@1/(;1 /1(.2 ;./.1(@ 7/(;@ -<+-?+ 2/.0.3(.@ .2(3 ..;1@(21 7.2(2 -<+?+0 @2.0(3@ .0(@ ;.2/2@(01 .0(31 -<+0?+4 2@(0 .3(2 ;@/;(22 .(;2 3)A# 232@(0 ;;323@ C*R .1(.2 .;(3@
Source: Annual $eports of SBI and ICICI from ;1.17.. to ;1.37.@(
-;
9able .(0 presents the mean of Advances of SBI 'as hi6her "2328@(0# as compared to mean of Advances of ICICI ";;3823@#( $ate of 6ro'th 'as also hi6her in SBI ".1(.2 J# than in ICICI ".;(3@J#( 9able also sho's the per cent Chan6e in Advances over the period of @ years( In case of SBI Advances 'ere continuously increased "'ith a decreasin6 trend# over the period of study( -o'ever Advances in ICICI 'ere decreased till ;1107.1 but these 'ere increased in the subseuent years(
/)POSITS?
*eposit is the amount accepted by bank from the savers in the form of current deposits8 savin6s deposits and fi=ed deposits and interest is paid to them(
TABL) +.++?TOTAL /)POSITS O! SBI A#/ ICICI
"I, C$?$GS#
:)AR SBI ICICI
/)POSIT DC9#A*) /)POSIT DC9A#*)
-<+<?++ @/31/(03 ,I<< ;333/.(1@ ,I<< -<++?+- 3;1/(./ /(1 ;./3(; 7.1(2 -<+-?+ 13..2(;/ (/2 ;1;1.2(21 7(31 -<+?+0 0//0/;(. .2(.3 ;;@21;(.. ..(2 -<+0?+4 .1323(/2 ..( ;@@300(02 ./(; 3)A# .;;/3 ;;0.0 C*R 03(;1 3(@;
Source: Annual $eports of SBI and ICICI from ;1.17.. to ;1.37.@
+
9able .(.. presents the mean of *eposits of SBI 'as hi6her ".;8;/3# as compared to mean of deposits of ICICI ";;08.0J#( -o'ever the rate of 6ro'th 'as hi6her in SBI "03(;1J# than that in ICICI "3(@;J# durin6 the period of study( 9able also sho's the per cent Chan6e in *eposits over the period of @ years( In case of SBI *eposits 'ere
continuously fluctuatin6 over the period of study( -o'ever deposits in ICICI 'ere decreased in ;1..7.; and ;1.;7./ but these 'ere increased in the year ;1./7.3 and ;1.@7.@ 'ith ..(2J and ./(;J respectively(
9he study found that the mean of Credit *eposit $atio in ICICI 'as hi6her "0(/1; J# than in SBI "2(.3J#( 9his sho's that ICICI Bank has created more loan assets from its deposits as compared to SBI( 9he share of interest e=penses in total e=penses hi6her in ICICI "2/(/2 J# as compare to SBI "@0(00 J# and the proportion of interest income to total income 'as hi6her in case of SBI"3(30J# as compared to ICICI "(3J#8 'hich sho's that people prefer ICICI to invest their savin6s and SBI to take loans advances( 9he ratio of other income to total income 'as relatively hi6her in ICICI ";.(33 J# as compared to SBI ".@(;; J#( 9he ,et Profit ar6in of ICICI is hi6her ".3(/ J# 'hereas in SBI it 'as ".1(00 J#8 'hich sho's that ICICI has sho'n comparatively better operational efficiency than SBI( 9he 6ro'th rate of net profit is /(0J in SBI 'hich is hi6her than ICICI 'hich is @@(30J( 9his sho's that SBI performed 'ell as compared to ICICI( 9he mean value of total income 'as hi6her in
SBI "8@0(@# as compared to that in ICICI "/8;;(..3#( ,et 'orth ratio 'as also hi6her in SBI ".3(.. J# than ICICI "( J#8 'hich revealed that SBI has utiliHed its resources more efficiently as compared to ICICI( 9he mean value of total e=penditure 'as hi6her in SBI "$s( 83(12 crores# as compared to that in ICICI "$s(/;8@1(2.# and the combined 6ro'th rate of e=penditure 'as ne6ative "7.(3J# in the case of ICICI 'hereas in SBI it is ...(@;J( *eposits in SBI 'ere continuously increased( -o'ever deposits in ICICI 'ere decreased "'ith a declinin6 trend# till ;1.;7./ but these 'ere increased in the subseuent years( In case of SBI Advances 'ere continuously increased "'ith a decreasin6 trend# 'ith the combined 6ro'th rate of ".1(.2 J#8 -o'ever Advances in ICICI 'ere decreased "'ith a declinin6 trend# till ;1.;7./ but these 'ere increased thereafter 'ith combined 6ro'th rate of ".;(3@ J#( It sho's that ICICI has suffered 'ith funds or avoid providin6 advances throu6h ;1.17.. to ;1.;7./( -ence8 on the basis of the above study or analysis bankin6 customer has more trust on the public sector banks as compared to private sector banks(
.( >here do you have your accountK
It sho's the ma=imum numbers of people have their bank account in SBI and less number of people has their bank account in ICICI Bank(
;(>hich of the follo'in6 type bankin6 account do you haveK
ACC?+,9 9LPG"SBI# ,? ?F $GSP?,*G,9S J C+$$G,9 .1 @1 SADI,4S @ ;@ !?I,9 / .@ <?A, ; .1 ACC?+,9 9LPG"ICICI# ,? ?F $GSP?,*G,9S J C+$$G,9 3 31 SADI,4S ; ;1 !?I,9 / /1 <?A, . .1
BA,& ,o of $espondents Percenta6e
SBI ;1 2
40% 20% 30% 10%
ICICI
CURRENT SAVINGS JOINT LOANBy seein6 the 6raph8 'e can find that ma=imum number of people have current account in SBI I(e( @1J( Savin6s account ;@J8 !oint account .@ J8 and loan account .1J( >hereas in ICICI 31J people have current account8 ;1 J have savin6 account8 /1J have %oint account and .1 J people have loan account(
M/( *oes your bank create any recreation facility for the customersK Response(S BI) No. of !s"o#e$ % ES 1& ' NO 3 1 Response(ICI CI) No. of !s"o#e$ % es & &
0 no 3 3 0 '% 1%
SBI CUSTOMERS
ES NO &0% 30%ICICI CUSTOMERS
ES NO,ot much difference is sho'n re6ardin6 recreational facilities to the customer bet'een t'o banks( -o'ever SBI has the leadin6 role so far(
/0
M3( *o you think that your bank caters all your bankin6 needsK $GSP?,SG"SBI# ,? ?F C+S9?G$S J LGS . @ ,? / .@ $GSP?,SG"ICICI# ,? ?F C+S9?G$S J LGS 1 ,? ; ;1 '(% 1(%
SBI PERCENTAGE
ES NO '0% 20% ICICI PERCENTAGE ES NO,ot much difference is sho'n re6ardin6 bank caters all your bankin6 needs to the customer( -o'ever SBI has the leadin6 role so far(
M@( >hich bank 'ould you chose re6ardin6 transactionK
Bank ,o(of $espondent Percenta6e
SBI ;/ 2
9here is much difference is sho'n re6ardin6 transaction bet'een t'o banks therefore SBI has far better than ICICI Bank(
M2( >hich bank has ease of access "both branch and A9#K
Bank ,o(of $espondent Percenta6e
SBI . @
ICICI / .@
9he 6raph sho's that out of t'o banks SBI Bank provides more ease of access re6ardin6 Branch and A9(
. Are you satisfied 'ith the service provided by the bankK $esponse "SBI# ,o(of $espondent Percenta6e
Dery Satisfied . @ Satisfied . @ Some'hat Satisfied . @ ,ot Satisfied . @
$esponse "ICICI# ,o(of $espondent Percenta6e Dery Satisfied 7 7 Satisfied @ @1 Some'hat Satisfied 3 31 ,ot Satisfied . .1 % '% % %
sbi
e$* s+",s-e s+",s-e so#e/+" s+",s-e no" s+",s-e
0% 40%
10%
icici
By seein6 this 6raph 'e can find that SBI Customers are more satisfied than the ICICI bank customers(
( *o they char6e unnecessarily for not maintainin6 minimum balance in your accountK $esponse"SBI# ,o( ?f Customers Percenta6e J
Les / .@
,o . @
$esponse"ICICI# ,o( ?f Customers Percenta6e J
Les 1 ,o ; ;1 1% '%
sbi
*es no '0% 20%icici
*es noBy seein6 this 6raph 'e can find that the ICICI Bank char6e unnecessarily for not maintainin6 minimum balance in your account than SBI Bank(
=&)STIO#ARRI) "Survey on customer5s satisfaction#
9he performance of bank also depends upon the satisfaction level of the customers( 9herefore a survey 'as conducted on the customers of SBI and ICICI bank usin6 a uestionnaire( 9he uestionnaire is a 'ell7structured of .1 uestions conducted on /1 customers of each bank( Muestionnaire is on the study of the comparison of financial performance of SBI and ICICI bank(
,ame:
?ccupation: Address: Se= :
M.( >here do you have your accountK
a( SBI b( ICICI
M;( >hich of the follo'in6 type bankin6 account do you haveK a( Current account b( Savin6s account
b( !oint account d( <oan account
M/( *oes your bank create any recreation facility for the customersK
a( Les b( ,o
M3( *o you think that your bank caters all your bankin6 needsK
a( Les b( ,o
M@( >hich bank 'ould you chose re6ardin6 transactionK
a( SBI b( ICICI
M2( >hich bank has ease of access "both branch and A9#K
a( SBI b( ICICI
