Management Thesis - II Final Report On A Comparative study of customer services in ICICI and SBI. Submitted by M.J.

VIDHYAA II YEAR MBA INC KEELKATTALAI Under the Guidance of DR.J.GAYATRI FACULTY GUIDE INC KEELKATTALAI 1

ICFAI National college, KEELKATTALAI (Certificate from Faculty Supervisor) CERTIFICATE This is to certify that the Management Thesis titled A Comparative study of customer services in ICICI and SBI submitted by M.J.VIDHYAA Enroll No: 7NBCT011 during Semester IV of the MBA Program (The Class of 2009) embodies original work done by him/her. Signature of the Faculty Supervisor Name (in Capi tals) Designation Campus : MRS.DR.J.GAYATHI : Faculty Member - Marketing : KEELKATTALAI 2

Table of contents Chapter 1: Introduction 07 - 33 1.1 Overview of banking Industry 1.2 Company Profile 1.3 Research objective 1.4 Review of literature 1.5 Key Words Chapter 2: Research Methodology 2.1 Sampling Design 2.2 Pilot Study 2.3 Research Methodology 2.4 Limitations of the Study Cha pter 3: Data Analysis and Interpretation Chapter 4: Findings, Recommendations an d Conclusion Chapter 5: Appendices 7 13 31 31 32 34 37 35 36 37 37 38 - 81 82 - 85 86 - 91 3

ACKNOWLEDGEMENT I am grateful to thank our Campus Head MR.R.Srinivasan for giving me this great opportunity to do my project. I also extent my thanks to.Dr.J.Gayatri, faculty g uide who has given me moral support to do my project work. I also extend my than kfulness to my beloved parents and friends for their continuous encouragement at every moment. 4

DECLARATION I here by declare that the project entitled A Comparative study of customer services in ICICI and SBI has been completed by me. I assure that this project is unique and has not been reproduced or copied from any other soures. (M.J.VIDHYAA) (7NBCT011) Faculty Guide 5

INTRODUCTION 6

1.1 OVERVIEW OF THE BANKING INDUSTRY: Banking in India originated in the last decades of the 18th century. The oldest bank in existence in India is the State Bank of India, a government-owned bank t hat traces its origins back to June 1806 and that is the largest commercial bank in the country. Central banking is the responsibility of the Reserve Bank of In dia, which in 1935 formally took over these responsibilities from the then Imper ial Bank of India, relegating it to commercial banking functions. After India's independence in 1947, the Reserve Bank was nationalized and given broader powers . In 1969 the government nationalized the 14 largest commercial banks; the gover nment nationalized the six next largest in 1980. Currently, India has 88 schedul ed commercial banks (SCBs) - 27 public sector banks (that is with the Government of India holding a stake), 29 private banks (these do not have government stake ; they may be publicly listed and traded on stock exchanges) and 31 foreign bank s. They have a combined network of over 53,000 branches and 17,000 ATMs. Accordi ng to a report by ICRA Limited, a rating agency, the public sector banks hold ov er 75 percent of total assets of the banking industry, with the private and fore ign banks holding 18.2% and 6.5% respectively. Early history: Banking in India originated in the last decades of the 18th century. The first b anks were The General Bank of India, which started in 1786, and the Bank of Hind ustan, both of which are now defunct. The oldest bank in existence in India is t he State Bank of India, which originated in the Bank of Calcutta in June 1806, w hich almost immediately became the Bank of Bengal. This was one of the three pre sidency banks, the other two being the Bank of Bombay and the Bank of Madras, al l three of which were established under charters from the British East India Com pany. For many years the Presidency banks acted as quasi-central banks, as did t heir successors. The three banks merged in 1925 to form the Imperial Bank of Ind ia, which, upon India's independence, became the State Bank of India. Indian mer chants in Calcutta established the Union Bank in 1839, but it failed in 1848 as a consequence of the economic crisis of 1848-49. The Allahabad Bank, established in 1865 and still functioning today, is the oldest Joint Stock bank in India. W hen the American Civil War 7

stopped the supply of cotton to Lancashire from the Confederate States, promoter s opened banks to finance trading in Indian cotton. With large exposure to specu lative ventures, most of the banks opened in India during that period failed. Th e depositors lost money and lost interest in keeping deposits with banks. Subseq uently, banking in India remained the exclusive domain of Europeans for next sev eral decades until the beginning of the 20th century. Foreign banks too started to arrive, particularly in Calcutta, in the 1860s. The Comptoire d'Escompte de P aris opened a branch in Calcutta in 1860, and another in Bombay in 1862; branche s in Madras and Pondicherry, then a French colony, followed. Calcutta was the mo st active trading port in India, mainly due to the trade of the British Empire, and so became a banking center. Around the turn of the 20th Century, the Indian economy was passing through a relative period of stability. Around five decades had elapsed since the Indian Mutiny, and the social, industrial and other infras tructure had improved. Indians had established small banks, most of which served particular ethnic and religious communities. The presidency banks dominated ban king in India but there were also some exchange banks and a number of Indian joi nt stock banks. All these banks operated in different segments of the economy. T he exchange banks, mostly owned by Europeans, concentrated on financing foreign trade. Indian joint stock banks were generally under capitalized and lacked the experience and maturity to compete with the presidency and exchange banks. This segmentation let Lord Curzon to observe, "In respect of banking it seems we are behind the times. We are like some old fashioned sailing ship, divided by solid wooden bulkheads into separate and cumbersome compartments." By the 1900s, the m arket expanded with the establishment of banks such as Punjab National Bank, in 1895 in Lahore and Bank of India, in 1906, in Mumbai - both of which were founde d under private ownership. Punjab National Bank is the first Swadeshi Bank found ed by the leaders like Lala Lajpat Rai, Sardar Dyal Singh Majithia. The Swadeshi movement in particular inspired local businessmen and political figures to foun d banks of and for the Indian community. A number of banks established then have survived to the present such as Bank of India, Corporation Bank, Indian Bank, B ank of Baroda, Canara Bank and Central Bank of India.The fervour of Swadeshi mov ement lead to establishing of many private banks in Dakshina Kannada 8

and Udupi district which were unified earlier and known by the name South Canara ( South Kanara ) district.Four nationalised banks started in this district and also a leading private sector bank. Hence undivided Dakshina Kannada district is known as "Cradle of Indian Banking". From World War I to Independence: The period during the First World War (1914-1918) through the end of the Second World War (1939-1945), and two years thereafter until the independence of India were challenging for Indian banking. The years of the First World War were turbu lent, and it took its toll with banks simply collapsing despite the Indian econo my gaining indirect boost due to war-related economic activities. At least 94 ba nks in India failed between 1913 and 1918 as indicated in the following table: Years Number of banks that failed Authorized capital (Rs. Lakhs) Paid-up Capital (Rs. Lakhs) 1913 12 274 35 1914 42 710 109 1915 11 56 5 1916 13 231 4 1917 9 76 25

1918 7 209 1 9

Post-independence: The partition of India in 1947 adversely impacted the economies of Punjab and We st Bengal, paralyzing banking activities for months. India's independence marked the end of a regime of the Laissez-faire for the Indian banking. The Government of India initiated measures to play an active role in the economic life of the nation, and the Industrial Policy Resolution adopted by the government in 1948 e nvisaged a mixed economy. This resulted into greater involvement of the state in different segments of the economy including banking and finance. The major step s to regulate banking included: In 1948, the Reserve Bank of India, India's central banking authority, was natio nalized, and it became an institution owned by the Government of India. In 1949, the Banking Regulation Act was enacted which empowered the Reserve Bank of Indi a (RBI) "to regulate, control, and inspect the banks in India." The Banking Regu lation Act also provided that no new bank or branch of an existing bank could be opened without a license from the RBI, and no two banks could have common direc tors. However, despite these provisions, control and regulations, banks in India excep t the State Bank of India, continued to be owned and operated by private persons . This changed with the nationalization of major banks in India on 19 July, 1969 . Nationalization: By the 1960s, the Indian banking industry has become an important tool to facili tate the development of the Indian economy. At the same time, it has emerged as a large employer, and a debate has ensued about the possibility to nationalize t he banking industry. Indira Gandhi, thethen Prime Minister of India expressed th e intention of the GOI in the annual conference of the All India Congress Meetin g in a paper entitled "Stray thoughts on Bank Nationalization." The paper was re ceived with positive enthusiasm. Thereafter, her move was swift and sudden, and the GOI issued an ordinance and nationalized the 14 largest commercial banks wit h effect from the midnight of July 19, 1969. Jayaprakash Narayan, a national lea der of India, described the step as a "masterstroke of political sagacity." With in two weeks of the issue of the ordinance, the 10

Parliament passed the Banking Companies (Acquisition and Transfer of Undertaking ) Bill, and it received the presidential approval on 9 August, 1969. A second do se of nationalization of 6 more commercial banks followed in 1980. The stated re ason for the nationalization was to give the government more control of credit d elivery. With the second dose of nationalization, the GOI controlled around 91% of the banking business of India. Later on, in the year 1993, the government mer ged New Bank of India with Punjab National Bank. It was the only merger between nationalized banks and resulted in the reduction of the number of nationalized b anks from 20 to 19. After this, until the 1990s, the nationalized banks grew at a pace of around 4%, closer to the average growth rate of the Indian economy. Th e nationalized banks were credited by some, including Home minister P. Chidambar am, to have helped the Indian economy withstand the global financial crisis of 2 007-2009. Liberalization: In the early 1990s, the then Narsimha Rao government embarked on a policy of lib eralization, licensing a small number of private banks. These came to be known a s New Generation techsavvy banks, and included Global Trust Bank (the first of s uch new generation banks to be set up), which later amalgamated with Oriental Ba nk of Commerce, UTI Bank(now re-named as Axis Bank), ICICI Bank and HDFC Bank. T his move, along with the rapid growth in the economy of India, revitalized the b anking sector in India, which has seen rapid growth with strong contribution fro m all the three sectors of banks, namely, government banks, private banks and fo reign banks. The next stage for the Indian banking has been setup with the propo sed relaxation in the norms for Foreign Direct Investment, where all Foreign Inv estors in banks may be given voting rights which could exceed the present cap of 10%,at present it has gone up to 49% with some restrictions. The new policy sho ok the Banking sector in India completely. Bankers, till this time, were used to the 4-6-4 method (Borrow at 4%;Lend at 6%;Go home at 4) of functioning. The new wave ushered in a modern outlook and tech-savvy methods of working for traditio nal banks.All this led to the retail boom in India. People not just demanded mor e from their banks but also received more. 11

Currently (2007), banking in India is generally fairly mature in terms of supply , product range and reach-even though reach in rural India still remains a chall enge for the private sector and foreign banks. In terms of quality of assets and capital adequacy, Indian banks are considered to have clean, strong and transpa rent balance sheets relative to other banks in comparable economies in its regio n. The Reserve Bank of India is an autonomous body, with minimal pressure from t he government. The stated policy of the Bank on the Indian Rupee is to manage vo latility but without any fixed exchange rate-and this has mostly been true. With the growth in the Indian economy expected to be strong for quite some time-espe cially in its services sector-the demand for banking services, especially retail banking, mortgages and investment services are expected to be strong. One may a lso expect M&As, takeovers, and asset sales. In March 2006, the Reserve Bank of India allowed Warburg Pincus to increase its stake in Kotak Mahindra Bank (a pri vate sector bank) to 10%. This is the first time an investor has been allowed to hold more than 5% in a private sector bank since the RBI announced norms in 200 5 that any stake exceeding 5% in the private sector banks would need to be vette d by them. In recent years critics have charged that the non-government owned ba nks are too aggresive in their loan recovery efforts in connection with housing, vehicle and personal loans. There are press reports that the banks' loan recove ry efforts have driven defaulting borrowers to suicide. 12

1.2 Company Profile of SBI: State Bank of India (SBI) is India's largest commercial bank. SBI has a vast dom estic network of over 9000 branches (approximately 14% of all bank branches) and commands one-fifth of deposits and loans of all scheduled commercial banks in I ndia. The State Bank Group includes a network of eight banking subsidiaries and several non-banking subsidiaries offering merchant banking services, fund manage ment, factoring services, primary dealership in government securities, credit ca rds and insurance. The eight banking subsidiaries are: 1-State Bank of Bikaner and Jaipur (SBBJ) 2-State Bank of Hyderabad (SBH) 3-Stat e Bank of India (SBI) 4-State Bank of Indore (SBIR) 5-State Bank of Mysore (SBM) 6-State Bank of Patiala (SBP) 7-State Bank of Saurashtra (SBS) 8-State Bank of Travancore (SBT) The origins of State Bank of India date back to 1806 when the Bank of Calcutta ( later called the Bank of Bengal) was established. In 1921, the Bank of Bengal an d two other Presidency banks (Bank of Madras and Bank of Bombay) were amalgamate d to form the Imperial Bank of India. In 1955, the controlling interest in the I mperial Bank of India was acquired by the Reserve Bank of India and the State Ba nk of India (SBI) came into existence by an act of Parliament as successor to th e Imperial Bank of India. 13

Today, State Bank of India (SBI) has spread its arms around the world and has a network of branches spanning all time zones. SBI's International Banking Group d elivers the full range of cross-border finance solutions through its four wings - the Domestic division, the Foreign Offices division, the Foreign Department an d the International Services division. State Bank of India (SBI) (LSE: SBID) is the largest bank in India. If one measu res by the number of branch offices and employees, SBI is the largest bank in th e world. Established in 1806 as Bank of Calcutta, it is the oldest commercial ba nk in the Indian subcontinent. SBI provides various domestic, international and NRI products and services, through its vast network in India and overseas. With an asset base of $126 billion and its reach, it is a regional banking behemoth. The government nationalized the bank in 1955, with the Reserve Bank of India tak ing a 60% ownership stake. In recent years the bank has focused on three priorit ies, 1), reducing its huge staff through Golden handshake schemes known as the V oluntary Retirement Scheme, which saw many of its best and brightest defect to t he private sector, 2), computerizing its operations and 3), changing the attitud e of its employees (through an ambitious programme aptly named 'Parivartan' whic h means change) as a large number of employees are very rude to customers. Roots: The State Bank of India traces its roots to the first decade of 19th century, wh en the Bank of Calcutta, later renamed the Bank of Bengal, was established on 2 June 1806. The government amalgamated Bank of Bengal and two other Presidency ba nks, namely, the Bank of Bombay (incorporated on 15 April 1840) and the Bank of Madras on 27 January 1921, and named the reorganized banking entity the Imperial Bank of India. All these Presidency banks had been incorporated as joint stock companies, and were the result of the royal charters. The Imperial Bank of India continued as a joint stock company. Until the establishment of a central bank i n India the Imperial Bank and its early predecessors served as India's central b ank, at least in terms of issuing the currency. The State Bank of India Act 1955 , enacted by the Parliament of India, authorized the Reserve Bank of India, whic h is the central banking organization of India, to acquire a controlling interes t in the Imperial Bank of India, which was renamed the State Bank of India on 30 April 1955. 14

Timeline: June 2, 1806: The Bank of Calcutta established. January 2, 1809: This became the Bank of Bengal. April 15, 1840: Bank of Bombay established. July 1, 1843: Bank of Madras established. 1861: Paper Currency Act passed. January 27, 1921: all th ree banks amalgamated to form Imperial Bank of India. July 1, 1955: State Bank o f India formed; becomes the first Indian bank to be nationalized. 1959: State Ba nk of India (Subsidiary Banks) Act passed, enabling the State Bank of India to t ake over eight former State-associated banks as its subsidiaries. 1980s When Ban k of Cochin in Kerala faced a financial crisis, the government merged it with St ate Bank of India. June 29, 2007: The Government of India today acquired the ent ire Reserve Bank of India (RBI) shareholding in State Bank of India (SBI), consi sting of over 314 million equity shares at a total amount of over 355 billion ru pees. Associate banks: There are seven other associate banks that fall under SBI. They all use the "Sta te Bank of" name followed by the regional headquarters' name. These were origina lly banks belonging to princely states before the government nationalized them i n 1959. In tune with the first Five Year Plan, emphasizing the development of ru ral India, the government integrated these banks with the State Bank of India to expand its rural outreach. The State Bank group refers to the seven associates and the parent bank. All the banks use the same logo of a blue keyhole. Currentl y, the group is merging all the associate banks into SBI, which will create a "m ega bank", and one hopes, streamline operations and unlock value. 15

 State Bank of Bikaner & Jaipur State Bank of Hyderabad State Bank of Indore Stat e Bank of Mysore State Bank of Patiala State Bank of Saurashtra State Bank of Tr avancore Foreign Offices: State Bank of India is present in 32 countries, where it has 84 offices serving the international needs of the bank's foreign customers, and in some cases condu cts retail operations. The focus of these offices is India-related business. Foreign Branches: SBI has branches in these countries: The Israeli branch Australia Bahrain Bangladesh Belgium Canada Dubai France Germany Hong Kong Israe l Japan People's Republic of China Republic of Maldives Singapore 16

 South Africa Sri Lanka Sultanate of Oman The Bahamas U.K. U.S.A Subsidiaries and Joint Ventures: In addition to the foreign branches above, SBI has these wholly owned subsidiari es and joint ventures: Nepal State Bank Limited SBI Mauritius Indian Ocean International Bank (Mauritiu s) SBI Canada SBI California Growth: Mumbai, India location. State Bank of India has often acted as guarantor to the Indian Government, most notably during Chandra Shekhar's tenure as Prime Ministe r of India. With more than 9400 branches and a further 4000+ associate bank bran ches, the SBI has extensive coverage. Following its arch-rival ICICI Bank, State Bank of India has electronically networked most of its metropolitan, urban and semi-urban branches under its Core Banking System (CBS), with over 4500 branches being incorporated so far. The bank has the largest ATM network in the country having more than 5600 ATMs [1]. The State Bank of India has had steady growth ov er its history, though the Harshad Mehta scam in 1992 marred its image. In recen t years, the bank has sought to expand its overseas operations by buying foreign banks. It is the only Indian bank to feature in the top 100 world banks in the Fortune Global 500 rating and various other rankings. According to the Forbes 20 00 listing it tops all Indian companies. 17

Fortune Global 500 Ranking 2007: SBI debuted in the Fortune Global 500[2] at 498 in 2006. In 2007 it moved up to 495. As per fortune 500-2007 following are the data for SBI in $ million. Revenu es 15,119.4. Profits 1,407.3. Assets 187,547.1. Stockholders' Equity 9,786.2 Group companies: SBI Capital Markets Ltd SBI Mutual Fund (A Trust) SBI Factors and Commercial Ser vices Ltd SBI DFHI Ltd SBI Cards and Payment Services Pvt Ltd SBI Life Insurance Co. Ltd - Bancassurance (Life Insurance) SBI Funds Management Pvt Ltd SBI Canad a IT Initiatives: According to PM Network (December 2006, Vol. 20, No. 12), State Bank of India la unched a project in 2002 to network more than 14,000 domestic and 70 foreign off ices and branches. The first and the second phases of the project have already b een completed and the third phase is still in progress. As of December 2006, ove r 10,000 branches have been covered. The new infrastructure serves as the bank's backbone, carrying all applications, such as the IP telephone network, ATM netw ork, Internet banking and internal e-mail. The new infrastructure has enabled th e bank to further grow its ATM network with plans to add another 3,000 by the en d of 2007 raising the total number to 8,600. As of September 20, 2007 SBI has 72 36 ATMs. 18

Corporate Details: This site provides comprehensive information on State Bank of India or SBI Bank, the premier Nationalized Indian Bank. State Bank of India is actively involved since 1973 in nonprofit activity called Community Services Banking.

State Bank of India is India's largest bank amongst all public and private secto r banks operating in India. State Bank of India owns and operates the following subsidiaries and Joint Ventures State Bank Of India Credit Card State Bank Of dia Online State Bank Of India USA State Bank Of India Services State Bank Of In dia Mutual Funds State Bank Of India Branch State Bank Of India NRI Account Banking Subsidiaries: State Bank of Bikaner and Jaipur (SBBJ) State Bank of Hyderabad (SBH) State Bank of Indore (SBI) State Bank of Mysore (SBM) State Bank of Patiala (SBP) State Ba nk of Saurashtra (SBS) State Bank of Travancore (SBT) Foreign Subsidiaries: State bank of India International (Mauritius) Ltd. State Bank of India (Californ ia). State Bank of India (Canada). 19

 INMB Bank Ltd, Lagos. Non- banking Subsidiaries. SBI Capital Markets Ltd (SBICAP) SBI Funds Management Pvt Ltd (SBI FUNDS) SBI DF HI Ltd (SBI DFHI) SBI Factors and Commercial Services Pvt Ltd (SBI FACTORS) SBI Cards & Payments Services Pvt. Ltd. (SBICPSL) Joint ventures: SBI Life Insurance Company Ltd (SBI LIFE). Activities: State Bank of India administrative structure is well equipped to oversee the lar ge network of branches in India and abroad. The State Bank of India 14 Local Hea d Offices and 57 Zonal Offices are located at important cities spread throughout the country. State Bank of India has 52 foreign offices in 34 countries across the globe. The Corporate Accounts Group is a Strategic Business Unit of the Bank set up exclusively to fulfill the specialized banking needs of top corporate in the country. The main activities of are into Personal Banking. NRI Services. Agriculture. International. Corporate. SME. Dome stic Treasury. 20

21

State Bank of India offers the following services to its customers Domestic Treasury. SBI Vishwa Yatra Foreign Travel Card. Broking Services Revise d Service Charge. ATM Services. Internet Banking. E-Pay. E-Rail. RBIEFT. Safe De posit Lockers. Gift Cheques. MICR Codes. Foreign Inward Remittances. Moreover, State Bank of India has Colleges/Institutes/Training Centers that are the seats of learning and research and development. It caters not only to the em ployees of State Bank of India but also other banks/establishments in India and abroad. Performance: SBI Bank India had Total Income of Rs 68376.83 crore for the financial year 2006 -07. State Bank of India has posted Net Income to the tune of Rs 6364.38 crore or the financial year 2006 -07. Organization: State Bank of India is headed by Mr. Shri O. P. Bhatt, Chairman. 22

Company Profile of ICICI: ICICI Bank is India's second-largest bank with total assets of Rs. 3,849.70 bill ion (US$ 82 billion) at September 30, 2008 and profit after tax Rs. 17.42 billio n for the half year ended September 30, 2008. The Bank has a network of about 1, 400 branches and 4,530 ATMs in India and presence in 18 countries. ICICI Bank of fers a wide range of banking products and financial services to corporate and re tail customers through a variety of delivery channels and through its specialize d subsidiaries and affiliates in the areas of investment banking, life and nonli fe insurance, venture capital and asset management. The Bank currently has subsi diaries in the United Kingdom, Russia and Canada, branches in United States, Sin gapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International Finance Cen tre and representative offices in United Arab Emirates, China, South Africa, Ban gladesh, Thailand, Malaysia and Indonesia. Our UK subsidiary has established bra nches in Belgium and Germany. ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and the National Stock Exchange of India Limited and its A merican Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NY SE). History: ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution, and was its wholly-owned subsidiary. ICICI's shareholding in ICICI Bank was reduced to 46% through a public offering of shares in India in fiscal 1998, an equity offering in the form of ADRs listed on the NYSE in fiscal 2000, ICICI Bank's acquisition of Bank of Madura Limited in an allstock amalgamation i n fiscal 2001, and secondary market sales by ICICI to institutional investors in fiscal 2001 and fiscal 2002. ICICI was formed in 1955 at the initiative of the World Bank, the Government of India and representatives of Indian industry. The principal objective was to create a development financial institution for provid ing medium-term and long-term project financing to Indian businesses. In the 199 0s, ICICI transformed its business from a development financial institution offe ring only project finance to a diversified financial services group offering a w ide variety of products and services, both directly and through a number of subs idiaries and affiliates 23

like ICICI Bank. In 1999, ICICI become the first Indian company and the first ba nk or financial institution from non-Japan Asia to be listed on the NYSE. After consideration of various corporate structuring alternatives in the context of th e emerging competitive scenario in the Indian banking industry, and the move tow ards universal banking, the managements of ICICI and ICICI Bank formed the view that the merger of ICICI with ICICI Bank would be the optimal strategic alternat ive for both entities, and would create the optimal legal structure for the ICIC I group's universal banking strategy. The merger would enhance value for ICICI s hareholders through the merged entity's access to low-cost deposits, greater opp ortunities for earning fee-based income and the ability to participate in the pa yments system and provide transaction-banking services. The merger would enhance value for ICICI Bank shareholders through a large capital base and scale of ope rations, seamless access to ICICI's strong corporate relationships built up over five decades, entry into new business segments, higher market share in various business segments, particularly fee-based services, and access to the vast talen t pool of ICICI and its subsidiaries. In October 2001, the Boards of Directors o f ICICI and ICICI Bank approved the merger of ICICI and two of its wholly-owned retail finance subsidiaries, ICICI Personal Financial Services Limited and ICICI Capital Services Limited, with ICICI Bank. The merger was approved by sharehold ers of ICICI and ICICI Bank in January 2002, by the High Court of Gujarat at Ahm adabad in March 2002, and by the High Court of Judicature at Mumbai and the Rese rve Bank of India in April 2002. Consequent to the merger, the ICICI group's fin ancing and banking operations, both wholesale and retail, have been integrated i n a single entity. ICICI Bank has formulated a Code of Business Conduct and Ethi cs for its directors and employees. ICICI Bank (BSE: ICICI) (formerly Industrial Credit and Investment Corporation of India) is India's largest private sector b ank in market capitalization and second largest overall in terms of assets. Bank has total assets of about USD 100 billion (at the end of March 2008), a network of over 1,399 branches, 22 regional offices and 49 regional processing centres, about 4,485 ATMs (at the end of September 2008), and 24 million customers (at t he end of July 2007). ICICI Bank offers a wide range of banking products and fin ancial services to corporate and retail customers 24

through a variety of delivery channels and specialised subsidiaries and affiliat es in the areas of investment banking, life and non-life insurance, venture capi tal and asset management. (These data are dynamic.) ICICI Bank is also the large st issuer of credit cards in India. [1] . ICICI Bank has got its equity shares listed on the stock exchanges at Kolkata and Vadodara, Mumbai and the National Stock Exchange of India Limited, and its ADRs on the Ne w York Stock Exchange (NYSE). The Bank is expanding in overseas markets and has the largest international balance sheet among Indian banks. ICICI Bank now has w holly-owned subsidiaries, branches and representatives offices in 18 countries, including an offshore unit in Mumbai. This includes wholly owned subsidiaries in Canada, Russia and the UK, offshore banking units in Bahrain and Singapore, an advisory branch in Dubai, branches in Belgium, Hong Kong and Sri Lanka, and repr esentative offices in Bangladesh, China, Malaysia, Indonesia, South Africa, Thai land, the United Arab Emirates and USA. Overseas, the Bank is targeting the NRI (Non-Resident Indian) population in particular. ICICI reported a 1.15% rise in n et profit to Rs. 1,014.21 crore on a 1.29% increase in total income to Rs. 9,712 .31 crore in Q2 September 2008 over Q2 September 2007. 1955: The Industrial Cred it and Investment Corporation of India Limited (ICICI) was incorporated at the i nitiative of World Bank, the Government of India and representatives of Indian i ndustry, with the objective of creating a development financial institution for providing medium-term and long-term project financing to Indian businesses. Mr.A .Ramaswami Mudaliar is elected as the first Chairman of ICICI Limited. ICICI eme rges as the major source of foreign currency loans to Indian industry. Besides f unding from World Bank and other multi-lateral agencies, ICICI was also among th e first Indian companies to raise funds from international markets. 1956: ICICI declared its first dividend, of 3.5%. 1958: Mr.G.L.Mehta appointed the second Ch airman of ICICI Ltd. 1960: ICICI building at 163, Backbay Reclamation, inaugurat ed. 1961: The first West German loan of DM 5 million from Kredianstalt obtained. 25

1967: ICICI made its first debenture issue for Rs.6 crore, which was oversubscri bed. 1969: The first two regional offices set up in Calcutta and Madras. 1972: I CICI becomes the second entity in India to set up merchant banking services. Mr. H. T. Parekh appointed the third Chairman of ICICI. 1977: ICICI sponsored the f ormation of Housing Development Finance Corporation and manages its first equity public issue. 1978: Mr. James Raj appointed the fourth Chairman of ICICI. 1979: Mr.Siddharth Mehta appointed the fifth Chairman of ICICI. 1982: ICICI became th e first ever Indian borrower to raise European Currency Units. ICICI commences l easing business. 1984: Mr. S. Nadkarni appointed the sixth Chairman of ICICI. 19 85: Mr. N.Vaghul appointed the seventh Chairman and Managing Director of ICICI. 1986: ICICI became the first Indian institution to receive ADB Loans. ICICI, alo ng with UTI, set up Credit Rating Information Services of India Limited, India's first professional credit rating agency. ICICI promotes Shipping Credit and Inv estment Company of India Limited. The Corporation made a public issue of Swiss F ranc 75 million in Switzerland, the first public issue by any Indian entity in t he Swiss Capital Market. 1987: ICICI signed a loan agreement for Sterling Pound 10 million with Commonwealth Development Corporation (CDC), the first loan by CD C for financing projects in India. 1988: Promoted TDICI - India's first venture capital company. 1993: ICICI Securities and Finance Company Limited in joint ven ture with J. P. Morgan set up. ICICI Asset Management Company set up. 1994: ICIC I Bank set up. 26

1996: ICICI Ltd became the first company in the Indian financial sector to raise GDR. SCICI merged with ICICI Ltd. Mr. K.V.Kamath appointed the Managing Directo r and CEO of ICICI Ltd 1997 : ICICI Ltd was the first intermediary to move away from a single prime rate structure to a three-tier prime rates structure and int roduced yield-curve-based pricing. The name "The Industrial Credit and Investmen t Corporation of India Ltd" changed to "ICICI Ltd." ICICI Ltd. announced the tak eover of ITC Classic Finance. 1998: A new logo symbolizing the common corporate identity for the ICICI Group was introduced. ICICI announced takeover of Anagram Finance. 1999 : ICICI launched retail finance - car loans, home loans and loans for consumer durables. ICICI becomes the first Indian company to get listed on the NYSE through an issue of American Depositary Shares. 2000 : ICICI Bank becam e the first commercial bank from India to get its stock listed on the NYSE. ICIC I Bank announces merger with Bank of Madura. 2001: The Boards of ICICI Ltd and I CICI Bank approved the merger of ICICI Ltd. with ICICI Bank. 2002: ICICI Ltd mer ged with ICICI Bank Ltd to create Indias second-largest bank in terms of assets. ICICI assigned higher than "Sovereign" rating by Moodys. ICICI Bank launched Indi as first CDO (Collateralised Debt Obligation) Fund named Indian Corporate Collate ralised Debt Obligation Fund (ICCDO Fund). "E-Lobby", a self-service banking cen tre and a first of its kind in India, is inaugurated in Pune. ICICI Bank launche d Private Banking. 27

A 1,100-seat Call Centre for Customer Care by phone and e-mail was set up in Hyd erabad. ICICI Bank Home Shoppe, the first-ever permanent aggregation and display of housing projects in the county, launched in Pune. ATM-on-Wheels, Indias first mobile ATM, launched in Mumbai. 2003: The first Integrated Currency Management Centre launched in Pune. ICICI Bank announced the setting up of its first-ever o ffshore branch in Singapore. The first offshore banking unit (OBU) at SEEPZ Spec ial Economic Zone, Mumbai, was launched. ICICI Banks representative office inaugu rated in Dubai. Representative office set up in China. ICICI Banks UK subsidiary launched. Indias first ever "Visa Mini Credit Card", a credit card 43% smaller in dimensions was launched. A subsidiary of ICICI Bank was set up in Canada. Temas ek Holdings acquired 5.2% stake in ICICI Bank. ICICI Bank became the market lead er in retail credit in India. 2004: Max Money, a home loan product that offers t he dual benefit of higher eligibility and affordability to a customer, introduce d. Mobile banking service in India launched in association with Reliance Infocom m. Indias first multi-branded credit card with HPCL and Airtel launched. Kisan Lo an Card and innovative, low-cost ATMs were launched in rural India. ICICI Bank a nd CNBC TV 18 announced Indias first ever awards recognizing the achievements of SMEs, a pioneering initiative to encourage the contribution of Small and Medium Enterprises to the growth of the Indian economy. ICICI Bank opened its 500th bra nch in India. ICICI Bank introduced partnership model wherein ICICI Bank would f orge an alliance with existing micro finance institutions (MFIs). The MFI would undertake the promotional role of identifying, training and promoting the microfinance clients and ICICI Bank would finance the clients directly on the recomme ndation of the MFI. 28

ICICI Bank introduced 8 to 8 Banking wherein all the branches of the Bank would remain open from 8a.m. to 8 p.m. from Monday to Saturday. ICICI Bank introduced the concept of floating rate for home loans in India. 2005: First rural branch a nd 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 of f. ICICI Bank and Visa jointly launched mChq a revolutionary credit card on the mobile phone. Private Banking Masters 2005, a nationwide Golf tournament for hig h networth clients of the Private Banking division launched. This event is the l argest domestic invitation amateur golf event conducted in India. Becomes the fi rst Indian company to make a simultaneous equity offering of $1.8 billion in Ind ia, the United States and Japan. Acquired IvestitsionnoKreditny Bank of Russia. ICICI Bank became the largest bank in India in terms of its market capitalizatio n. ICICI Bank became the first private entity in India to offer a discount to re tail investors for its follow-up offer. 2006: ICICI Bank became the first Indian bank to issue hybrid Tier-1 perpetual debt in the international markets. ICICI Bank subsidiary set up in Russia. Introduced a new product - NRI smart save Depos its a unique fixed deposit scheme for nonresident Indians. Representative offices opened in Thailand, Indonesia and Malaysia. ICICI Bank became the largest retai l player in the market to introduce a biometric enabled smart card that allow ba nking transactions to be conducted on the field. A lowcost solution, this became an effective delivery option for ICICI Banks micro-finance institution partners. Financial counseling centre Disha launched. Disha provides free credit counseli ng, financial planning and debt management services. Bhoomi puja conducted for a regional hub in Hyderabad, Andhra Pradesh. 29

2007: ICICI Bank makes a USD 2 billion three-tranche international bond offering , which becomes the largest bond offering by an Indian bank. Sangli Bank was ama lgamated with ICICI Bank. ICICI Bank raised Rs 20,000 crore (approx $5 billion) from domestic and international markets through a follow-on public offer. ICICI Banks GBP 350 million international bond offering marked the inaugural deal in th e sterling market from an Indian issuer and also the largest deal in the sterlin g market from Asia. Launched Indias first ever jewellery card in association with jewellery major Gitanjali Group. ICICI Bank became the first bank in India to l aunch a premium credit card -- The Visa Signature Credit Card. The foundation st one for a regional hub in Gandhinagar, Gujarat was laid. ICICI Bank introduced S ME Toolkit, an online resource centre, to help small and medium enterprises star t, finance and grow their business. ICICI Bank signed a multi-tranche dual curre ncy US$ 1.5 billion syndication loan agreement in Singapore. ICICI Bank became t he first private bank in India to offer both floating and fixed rate on car loan s, commercial vehicles loans, construction equipment loans and professional equi pment loans. In a first-of-its-kind, nation wide initiative to attract bright gr aduate students to pursue a careers in banking, ICICI Bank launched the "Probati onary Officer Programme". Launched Bank@Home services for all savings and curren t account customers residing in India ICICI Bank Eurasia LLC inaugurated its fir st branch at St Petersburg, Russia. 2008: ICICI Bank enters USA, launches its fi rst branch in New York ICICI Bank enters Germany, opens its first branch in Fran kfurt ICICI Bank launched iMobile, a breakthrough innovation in banking where pr actically all Internet banking transactions can now be done easily on the mobile phone. 30

ICICI Bank concluded India's largest ever securitization transaction of a pool o f retail loan assets aggregating to Rs. 48.96 billion (equivalent of USD 1.21 bi llion) in a multitranche issue backed by four different asset categories. It is also the largest deal in Asia (ex-Japan) in 2008 till date and the second larges t deal in Asia (ex-Japan and Australia) since the beginning of 2007. ICICI Bank launches ICICIACTIVE-Banking Interactive Service - along with DISH TV, which wil l allow viewers to see information about the Bank's products and services and co ntact details on their DISH TV screens. ICICI Bank and British Airways launch a co-branded credit card, designed to earn cardholders accelerated reward points w ith every British Airways flight or by spending on everyday purchases Personal Banking: Deposits Loans Cards Investments Insurance Demat services Wealth management NRI Banking: Money Transfer Bank accounts Investments Property Solutions Insurance Loans 31

Business Banking: Corporate net banking Cash Management e taxes Custodial services

Trade services

FXonline

SME services

Onlin

1.3 Research objective: To study whether the customers are satisfied with their services among ICICI ban k and SBI bank To know about the Customer preferences among ICICI and SBI bank T o give Suggestions to improve the services 1.4 Review of literature: The banking sector in India has made remarkable progress since the economic refo rms in 1991. New private sector banks have brought the necessary competition int o the industry and spearheaded the changes towards higher utilization of technol ogy, improved customer service and innovative products. Customers are now becomi ng increasingly conscious of their rights and are demanding more than ever befor e. The recent trends show that most banks are shifting from a product-centric mod el to a customer-centric model as customer satisfaction has become one of the major determinants of business growth. In this context, prioritization of preferences and close monitoring of customer satisfaction have become essential for banks. Keeping these in mind, an attempt has been made in this study to analyze the fac tors that are essential in influencing the investment decision of the customers of the public sector banks. For this purpose, Factor Analysis, which is the most appropriate multivariate technique, has been used to identify 32

the groups of determinants. Factor analysis identifies common dimensions of fact ors from the observed variables that link together the seemingly unrelated varia bles and provides insight into the underlying structure of the data. Secondly, t his study also suggests some measures to formulate marketing strategies to lure customers towards banks. 1.5 Key Words: Bank: A bank is a financial institution whose primary activity is to act as a payment agent for customers and to borrow and lend money. It is an institution for recei ving, keeping, and lending money. Mobile Banking: Mobile banking (also known as M-Banking, mbanking, SMS Banking etc.) is a term u sed for performing balance checks, account transactions, payments etc. via a mob ile device such as a mobile phone. Mobile banking today (2007) is most often per formed via SMS or the Mobile Internet but can also use special programs called c lients downloaded to the mobile device. Internet Banking: Online banking (or Internet banking) allows customers to conduct financial trans actions on a secure website operated by their retail or virtual bank, credit uni on or building society. Core Banking System: Core Banking is a general term used to describe the services provided by a group of networked bank branches. Bank Customers may access their funds and other sim ple transactions from any of the menber branch offices. 33

Atm: An automated teller machine (ATM) is a computerized telecommunications device th at provides the customers of a financial institution with access to financial tr ansactions in a public space without the need for a human clerk or bank teller. On most modern ATMs, the customer is identified by inserting a plastic ATM card with a magnetic stripe or a plastic smartcard with a chip, that contains a uniqu e card number and some security information, such as an expiration date or CVC ( CVV). Security is provided by the customer entering a personal identification nu mber (PIN). Using an ATM, customers can access their bank accounts in order to m ake cash withdrawals (or credit card cash advances) and check their account bala nces as well as purchasing mobile cell phone prepaid credit. ATMs are known by v arious other names including automated banking machine, money machine, bank mach ine, cash machine, hole-in-the-wall, cashpoint, Bancomat (in various countries i n Europe and Russia), Multibanco (after a registered trade mark, in Portugal), a nd Any Time Money (in India). 34

RESEARCH METHODOLOGY 35

2.1 Sampling design: Target population: The target population in this research refers to the bank customers who are havi ng an account in SBI bank and ICICI bank due to the convenience in collecting th e data. The respondents can be any gender, any income level, any occupation and any education level. Sampling unit The sampling units are customers of ICICI bank and SBI bank. Sampling method For this research we use non-probability sampling. Zikmund (1997) stated that in nonprobability sampling, the probability of any particular member of the popula tion being chosen is unknown. The element in the population does not have any pr obability attached to their being chosen as sample subjects. Snow ball sampling will be applied in this research. Snow ball sampling is used to collect the data from the customers. Snow ball sampling refers to the procedure that involves th e selection of additional respondents based on referrals of initial respondents. Sample size Ghauri (2002) stated that sample size depend on the desired precision from the e stimate. Precision is the size of the estimating interval when the problem is on e of estimating a population parameter. This research selects 60 respondents as the sample size due to limited of time by asking them that they are having an ac count in SBI bank and ICICI bank due to the convenience in collecting the data. The respondents can be any gender, any income level, any occupation and any educ ation level. 36

Sampling plan: The researcher is going to collect the data from the ATMS and also by visiting t he bank. 2.2 Pilot Study: A pilot study can refer to many types of experiments, but generally the goal of study is to replicate the full scale experiment, but only on a smaller scale. A pilot is often used to test the design of the full-scale experiment. The design can then be adjusted in time. This can turn out to be valuable: should anything be missing in the pilot, it can be added to the experiment and chances are that the full-scale (and more expensive) experiment will not have to be re-done. Validity: The ability of a scale or a measuring instrument to measure what it is intended to measure can be termed as the validity of the measurement. Validity can be mea sured through several methods like face validity, content validity, criterion re lated validity and construct validity. For this comparative study the researcher has taken the face validity. Face validity: Face validity refers to the collective agreement of the experts and researchers on the validity of the measurement scale. The researcher has gave the questionna ire to the experts in banking field. Reliability: In reliability the researcher has adopted the alpha method. The reliability for the SBI bank ATM service is .630.It shows that the question regarding to SBI ATM service is reliable. And for the internet banking service is .767. And for the mobile banking service is .896. And for the core banking system is .902. If the reliability result is .6 or above .6 the data is reliable. And for this study th e data is reliable because all the service are above .6. 37

2.3 Research methodology: Sources of data: The data is basically primary in nature It was obtained from the customers Data Collection Method: Our communication approach was basically structured questioning, that is persona l interview with the aid of printed questionnaires. Data Analysis: Appropriate statistical analysis will be adopted. The data will be tabulated and analyzed. 2.4 Limitations of the Study: The study is limited to a particular branch of SBI and ICICI bank. Since the tim e is less the researcher has taken a sample of 100 people and it will not reveal the whole population of a country. 38

DATA ANALYSIS &INTERPERTATION 39

Data Analysis and Interpretation: The following information contains the data interpretation of the questionnaires . The respondents responses for the questions have been interpreted and a finding has been made based on the respondents responses. Frequency table for the demographic details of the SBI respondents Table 3.1 AGE OF THE RESPONDENTS Frequency 25YRS-35YRS 36YRS-45YRS 46YRS-55YRS ABOVE 55YRS Tot al 12 5 5 8 30 Percent 38.7 16.1 16.1 25.8 100 Interpretation: From the above table 38.7% respondents are belonging to the age category of 25yr s-35yrs. And 16.1% respondents are belonging to the category of 36yrs-45yrs and 46yrs-55yrs. And 25.8% respondents are belonging to the category of above 55yrs. Graph: 3.1 40

Table 3.2 41

GENDER OF THE RESPONDENTS Frequency FEMALE MALE Total 15 15 30 Percent 48.4 48.4 100 Interpretation: From the above table 48.4% respondents are belonging to the cate gory of female. And the remaining 48.4% respondents are belonging to the categor y of male. 42

Graph: 3.2 Table 3.3 43

EDUCATIONAL OUALIFICATION OF THE RESPONDENTS Frequency SCHOOL UG PG PROFESSIONAL COURSE M.phil/phd Total 3 9 14 3 1 30 Percent 9.7 29.0 45.2 9.7 3.2 100 Interpretation: From the above table 9.7% of respondents are belonging to the ca tegory of school and professional course. And 29.0% of respondents are belonging to the category of UG. And 45.2% of respondents are belonging to the category o f PG. And 3.2% of respondents are belonging to the category of M.phil/phd. Graph 3.3 44

Table 3.4 45

OCCUPATION OF THE RESPONDENTS Frequency SALARIED PERSON PROFESSIONALS SUPERVISOR MANAGERIAL Total 25 1 1 3 30 Percent 80.6 3.2 3.2 10.0 100 Interpretation: From the above table 80.6% of respondents are falling under the category of salaried person. And 3.2% of respondents are falling under the categ ory of professionals and supervisor. And 10% of respondents are belonging to the category of managerial. Graph 3.4 46

Table 3.5 47

INCOME LEVEL OF THE RESPONDENTS Frequency Rs.5,000-Rs.15,000 Rs.15,001-Rs.25,000 Rs.25,001-Rs.35,000 Above Rs.45,000 Total 17 8 4 1 30 Percent 54.8 25.8 12.9 3. 2 100 Interpretation: From the above table 54.8% of respondents are falling under the income range between Rs.5, 000-Rs.15, 000. And 25.8% are falling under the incom e range between Rs.15, 001-Rs.25, 000. And 12.9% of respondents are falling unde r the income range between Rs.25, 001-Rs.35, 000. And 3.2% of respondents are fa lling under the income range between Above Rs.45, 000. Graph 3.5 48

Table 3.6 49

REASON TO CHOOSE THE SERVICE EFFICIENT CUSTOMER SERVICE TIME SAVING TRANSCATION COSTS TECHNOLOGY MORE ATMS To tal Frequency 14 8 3 1 4 30 Percent 45.2 25.8 9.7 3.2 12.9 100 Interpretation: From the above table 45.2% of respondents are saying that the re ason to choose SBI is they are providing efficient customer service. And 25.8% o f respondents are saying that the reason to choose SBI is they are reducing our waiting time. And 9.7% of respondents are saying that the reason to choose SBI i s Transaction costs. And 3.2% of respondents are saying that the reason to choos e SBI is Technology. And 12.9% of respondents are saying that the reason to choo se SBI is they are provided more atm facility. Graph 3.6 50

Table 3.7 51

TYPE OF SERVICE PREFER THE MOST Frequency ATM SERVICE INTERNET BANKING MOBILE BA NKING CORE BANKING SYSTEM Total 19 3 3 5 30 Percent 61.3 9.7 9.7 16.1 100 Interpretation: From the above table 61.3% of respondents prefer the ATM service . And 9.7% of respondents are preferred the internet banking and mobile banking. And 16.1% of respondents prefer the core banking system. Graph 3.7 52

Frequency table for the demographic details of the ICICI respondents 53

Table 3.8 AGE OF THE ICICI RESPONDENTS Frequency 25 YRS-35 YRS ABOVE 55 YRS Tota l 29 1 30 Percent 96.7 3.3 100 Interpretation: From the above table 96.7% of respondents are falling under the age group of 25yrs-35yrs. And 3.3% of respondents are falling under the group of above 55yrs. Graph 3.8 54

Table 3.9 55

GENDER OF THE ICICI RESPONDENTS Frequency FEMALE MALE Total 12 18 30 Percent 40 60 100 Interpretation: From the above table 40% of respondents are belonging to the fem ale category. And 60% of respondents are belonging to the male category. Graph 3.9 56

Table 3.10 57

EDUCATIONAL LEVEL OF ICICI RESPONDENTS Frequency UG PG PROFESSIONALS M.Phil/Ph.D Total 2 21 6 1 30 Percent 6.7 70.0 20.0 3.3 100 Interpretation: From the above table 6.7% of respondents are belonging to the ca tegory of UG. And 70% of respondents are belonging to the category of PG. And 20 % of respondents are belonging to the category of professionals. And 3.3% of res pondents are belonging to the category of M.Phil/Ph.D. Graph: 58

Table 3.11 59

OCCUPATION OF THE ICICI RESPONDENTS Frequency SALARIED PERSON BUSINESS MAN PROFE SSIONALS MANAGERIAL Total 23 3 3 1 30 Percent 76.7 10.0 10.0 3.3 100 Interpretation: From the above table 76.7% of respondents belong to the category of salaried person. And 10% of respondents are belonging to the category of bus inessman and professionals. And 3.3% of respondents are belonging to the categor y of managerial. Graph 3.11 60

Table 3.12 INCOME LEVEL OF THE ICICI RESPONDENTS 61

Rs.5,000-Rs.15,000 Rs.15,001-Rs.25,000 Rs.25,001-Rs.35,000 Rs.35,001-Rs.45,000 A bove Rs.45,000 Total Frequency 16 2 9 2 1 30 Percent 53.3 6.7 30.0 6.7 3.3 100 Interpretation: From the above table 53.3% of respondents are falling under the income level of Rs.5, 000-Rs.15, 000. And 6.7% of respondents are falling under the income level of Rs.15, 001-Rs.25, 000 and Rs.35, 001-Rs.45, 000. And 30% of respondents are falling under the income level of Rs.25, 001-Rs.35, 000. And 3.3 % of respondents are falling under the income level of above Rs.45, 000. Graph 3.12 62

Table 3.13 REASON FOR CHOOSING ICICI SERVICES 63

EFFICIENT CUSTOMER SERVICE EFFICIENT COMPLAINTS HANDLING TIME SAVING TRANSACTION COSTS TECHNOLOGY RELIABLE Total Frequency 8 8 4 2 4 4 30 Percent 26.7 26.7 13.3 6.7 13.3 13.3 100 Interpretation: From the above table 26.7% of respondents are saying that the re ason to choose ICICI is they are providing efficient customer service and effici ent complaint handling. And 13.3% of respondents are saying that the reason to c hoose ICICI is they are reducing our waiting time, technology and reliable. And 6.7% of respondents are saying that the reason to choose ICICI is Transaction co sts. Graph 3.13 64

Table 3.14 TYPE OF SERVICES PREFER THE MOST 65

Frequency ATM SERVICE INTERNET BANKING MOBILE BANKING CORE BANKING SYSTEM Total 13 9 4 4 30 Percent 43.3 30.0 13.3 13.3 100 Interpretation: From the above table 43.3% of respondents prefer the ATM service . And 30% of respondents are preferred the internet banking. And 13.3% of respon dents prefer the core banking system and mobile banking. Graph 3.14 66

Cross Tabulation and chi- Square Test: The following table below is cross tabs and chi- square test for the demographic details for the SBI respondents. For the cross tabulation and chi- square the r esearcher has taken only education 67

and reason to the service. And the other one is occupation and type of service t hey prefer the most. Table 3.15 EDUCATIONAL OUALIFICATION OF THE RESPONDENTS * REASON TO CHOOSE THE S ERVICE Cross tabulation REASON TO CHOOSE THE SERVICE EFFICIENT CUSTOMER SERVICE SCHOOL UG PG PROFESSIONA L COURSE M.phil/phd Total 6.7% 13.3% 13.3% TIME SAVING TRANSCATION COSTS TECHNOL OGY MORE ATMS Total 3.3% 10% 13.3% .0% 3.3% 6.7% .0% .0% 3.3% .0% .0% 3.3% .0% 3.3% 10% .0% .0% 13.3% 10% 30% 46.7% 10% 3.3% 100.0% 10% 3.3% 46.7% .0% .0% 26.7% .0% .0% 10.0% 68

Interpretation: From the above table 6.7% of respondents are falling under the education level o f school has chosen the efficient customer service in SBI. And 69

Graph 3.15 70

Table 3.15 Chi-Square Test -I Hypothesis: Ho: There is no significant relationship between the educational qualification o f the respondents and the reason to choose the service. Ha: There is a significa nt relationship between the educational qualification of the respondents and the reason to choose the service. Value Pearson ChiSquare 8.739 df 16 Asymp. Sig. (2sided) .924 Interpretation: From the above table the calculated chi-square statistic in this case is .924. S ince the calculated chi-square is above 0.05. The null hypothesis is rejected an d the alternate hypothesis is accepted. So there is a significant relationship b etween the educational qualification of the respondents and the reason to choose the service. 71

Table 3.16 OCCUPATION OF THE RESPONDENTS * TYPE OF SERVICE PREFER THE MOST Cross tabulation TYPE OF SERVICE PREFER THE MOST ATM SERVICE SALARIED PERSON 53.3% INTERNET BANKI NG 3.3% MOBILE BANKING 6.7% CORE BANKING SYSTEM 20% Total 83.3% PROFESSIONALS .0% 3.3% .0% .0% 3.3% SUPERVISOR 3.3% .0% .0% .0% 3.3% MANAGERIAL 6.7% 3.3% .0% .0% 10% Total 63.3% 10% 6.7% 20% 100% Interpretation: 72

Graph 3.16: 73

Table 3.16 Chi-Square Test - II Hypothesis: Ho: There is no significant relationship between the occupation of the responden ts and the type of service they prefer the most. Ha: There is no significant rel ationship between the occupation of the respondents and the type of service they prefer the most. Value Pearson ChiSquare 13.186 df 9 Asymp. Sig. (2sided) .154 Interpretation: From the above table the calculated chi-square statistic in this case is .154. S ince the calculated chi-square is below 0.05. The null hypothesis is accepted an d the alternate hypothesis is rejected. So there is no significant relationship between the occupation of the respondents and the type of service they prefer th e most. 74

The following table below is cross tabs and chi- square test for the demographic details for the ICICI respondents. For the cross tabulation and chi- square the researcher has taken only education and reason to the service. And the other on e is occupation and type of service they prefer the most. Table 3.17 EDUCATIONAL LEVEL OF ICICI RESPONDENTS * REASON FOR CHOOSING ICICI SE RVICES Cross tabulation REASON FOR CHOOSING ICICI SERVICES EFFICIENT CUSTOMER SERVICE EFFICIENT COMPLAIN TS HANDLING TIME SAVING TRANSACTION COSTS TECHNOLOGY RELIABLE Total UG PG PROFESSIONAL COURSE M.PHIL/PHD TOTAL .0% 13.3% 10% .0% 26.7% .0% .0% 10% 3.3% 6.7% .0% .0% .0% 6.7% 6.7% .0% 13.3% .0% 6.7% 70% 20% 3.3% 26.7% .0% 26.7% .0% 13.3% .0% 6.7% .0% 13.3% .0% 13.3% 3.35 100% Interpretation: 75

Graph 3.17 76

Table 3.17 Chi-Square Test - I Hypothesis: Ho: There is no significant relationship between the educational qualification a nd the reason for choosing the service. Ha: There is a significant relationship between the educational qualification and the reason for choosing the service. Value Pearson ChiSquare 40.268 df 15 Asymp. Sig. (2sided) .000 Interpretation: From the above table the calculated chi-square statistic in this case is .000. S ince the calculated chi-square is below 0.05. The null hypothesis is accepted an d the alternate hypothesis is rejected. So there is no significant relationship between the educational qualification of the respondents and the reason for choo sing the service.. 77

Table 3.18 OCCUPATION OF THE ICICI RESPONDENTS * TYPE OF SERVICES PREFER THE MOS T Cross tabulation TYPE OF SERVICE PREFER THE MOST ATM SERVICE SALARIED PERSON 36.7% INTERNET BANKI NG 20% MOBILE BANKING 13.3% CORE BANKING SYSTEM 6.7% Total 76.7% BUSINESS MAN PROFESSIONALS 3.3% 3.3% 3.3% 3.3% .0% .0% 3.3% 3.3% 10% 10% MANAGERIAL .0% 3.3% .0% .0% 3.3% Total 43.3% 30% 13.3% 13.3% 100% 78

Interpretation: Graph 3.18 Table 3.18 79

Chi-Square Test - II Hypothesis: Ho: There is no significant relationship between the occupation of the responden ts and the type of service they prefer the most. Ha: There is a significant rela tionship between the occupation of the respondents and the type of service they prefer the most. Value Pearson ChiSquare 5.974 df 9 Asymp. Sig. (2sided) .743 Interpretation: From the above table the calculated chi-square statistic in this case is .743. S ince the calculated chi-square is above 0.05. The null hypothesis is rejected an d the alternate hypothesis is accepted So there is a significant relationship be tween the occupation of the respondents and the type of service they prefer the most. 80

FINDINGS RECOMMENDATIONS AND CONCLUSION Findings: 81

Sum Of the respondents to choose the SBI bank is because the bank is proving mor e ATM facility to the customers. And many of the respondents are saying the reas on to choose the services of the SBI bank is because they are good in efficient customer service. And the income level of the respondents who are having an acco unt in SBI bank falling under the income level of Rs. 5,000 Rs.15.000. The age g roup of 25yrs 35yrs respondents mostly is having an account in SBI bank. The bot h gender are equally having an account in SBI bank. And many of the respondents are not aware of the many services rendered by the SBI bank. The few are deposit of cash in ATM, request for cheque book in ATM, end of the day balance in mobil e, etc. Sum Of the respondents to choose the ICICI bank is because the bank is m ore reliable to the customers. And many of the respondents are saying the reason to choose the services of the ICICI bank is because they are good in efficient customer service and efficient complaint handling. And the income level of the r espondents who are having an account in ICICI bank falling under the income leve l of Rs. 5,000 - Rs.15.000. The age group of 25yrs - 35yrs respondents mostly is having an account in ICICI bank. The male gender is mostly having an account in ICICI bank. And many of the respondents are not aware of the many services rend ered by the ICICI bank. The few are deposit of cash in ATM, request for cheque b ook in ATM, end of the day balance in mobile, etc. Recommendation: 82

Since many of the respondents are not aware of there key services. The bank has to take some initiatives. The bank can post a list of services that they are ren dered to the customers inside the bank Premises. And they can post demo of all t hese services in their bank website. They can concentrate more on the respondent s are falling under the age group 25yrs 35yrs. The SBI bank can concentrate on c ustomer complaints handling. The ICICI bank can concentrate on the female gender . The bank can also send a post to there customers by informing there services a nd how to proceed with that and all details they can mention it in the post. Conclusion: 83

 Since both the banks are competing equally with each other. But SBI bank is litt le bit below the line in customer complaints handling when compared to ICICI ban k. The ICICI bank is little bit below the line in concentrating on female custom ers when to SBI bank. 84

APPENDICS 85

BIBLIOGRAPHY: Research Methodology - ICFAI Publication S.P.Gupta Statistics Book . Websites: www.ezine@rticles.com www.googlesearch.com www.iupindia.org www.ebsc ohostsearch.com www.emeraldinsight.com www.scribd.com 86

Questionnaire Personal details 1. Name: 2. Age: a) 25yrs- 35 yrs b) 36 yrs - 45y rs yrs 3. Gender: a) Male b) Female 4. Educational Qualification: a) Illiterate b) School c) UG d) PG e) Professional Course f) Others 5. Occupation: a) House w ife b) Students c) Salaried person d) Business man e) Professionals f) Superviso r g) Managerial h) pensioner 6. Income level: a) Rs.5,000 Rs.15,000 b) Rs.15,001 -Rs.25,000 c) Rs.25,001- Rs.35,000 d) Rs.35,001-Rs.45,000 e) Above Rs. 45,000 7. In which bank do you have an account? a) ICICI bank b) SBI bank 8. What is the reason to choose the services of the bank? a) Efficient customer service b) effi cient complaints handling c) Time saving d) transaction costs e) technology f) O thers _________ pls specify c) 46 55 yrs d) above 55 87

9. What type of services do you prefer the most? a) ATM service b) Internet Bank ing c) Mobile Banking d) Core banking system e) Others _____________ pls specify Customer service ques tionnaire Please use (/) mark to give your responses for the following questions 1=strongly disagree, 2= disagree, 3= neutral, 4= agree, 5= strongly agree S.no 1 2 3 4 5 ATM Service I am facing problems in withdrawing cash from ATM. I am fa cing problems like insufficient cash in 1 2 3 4 5 ATM. ATM services are useful for me to deposit cash and cheques ATM services are useful for me to request for cheque book ATM services are useful for me to get the enquiry statement of my account. Internet Banking Internet banking helps me to transfer funds from the bank to the personalized transactions Internet bankin g saves me time for the banking transactions Internet banking helps me in bill p ayments Internet banking secures the money transactions 88 1 2 3 4

5 1 2 3 4 5 6 7 Internet banking helps in online trading Mobile banking Mobile banking is useful for me to know the end of day account balance. Mobile banking is useful for me to know the cheque details Mobile banking is useful for me to know the Debit/cre dit above certain limit in my account. Mobile banking is useful for me to Stop i nward/outward cheques. Mobile banking is useful for my bill payments Mobile bank ing helps me to know about the debit/credit details Mobile banking provides me a support for ticketing, recharging mobiles etc. Core Banking system Core banking system helps me to transfer funds from different branches Core banking system m akes me convenient to know about the deposit details Core banking system helps m e to protect my personal information Core banking system helps me for the ATM se rvice transactions Core banking system helps me for the internet banking transac tions 1 2 3 4 5 89

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