NEW DELHI INSTITUTE OF MANAGEMENT

WINTER PROJECT REPORT ON

Comparative Analysis of SBI & ICICI Bank

By SAJAL SINGHAL 71
In Partial Fulfillment for the award of the degree Post Graduate Diploma In Management 2012-14

NEW DELHI INSTITUTE OF MANAGEMENT 50 (B &C), 60, TUGHLAKABAD INSTITUTIONAL AREA, NEW DELHI -110062 E-MAIL: PLACEMENT@NDIMDELHI.ORG WEBSITE : WWW.NDIMDELHI.ORG

WINTER PROJECT REPORT ON

Comparative Analysis of SBI &ICICI Bank

Submitted bySAJAL SINGHAL ROLL NO. 71

Submitted toMr. VK MAHAJAN

ACKNOWLEDGEMENT
In this project I have made an honest and dedicated attempt to make the research material as authentic as it could. And I earnestly hope that it provides useful and workable information and knowledge to any person reading it. During the small time frame of two months in which the project reached its completion, there were a few people whom I would like to thank and without whose help the project would have not seen the light of the day. I would also like to thank my faculty guide Prof. V.K MAHAJAN for his unconditional co-operation and kind support in preparing the report. .

SAJAL SINGHAL PGDM (2012-2014) New Delhi Institute of Management

DECLARATION
I Sajal Singhal student of New Delhi Institute of Management (2012-14) declare that every part of the Project Report on Comparative Analysis of SBI & ICICI bank submitted by me is original. I was in regular contact with my faculty guide and contacted several times for discussing the project.

Date of project submission: 12/03/2014 Signature of the Student Faculty Mentors Comments: __________________________________________________________________ ___________________ __________________________________________________________________ ___________________ __________________________________________________________________ ___________________

Signature of Faculty guide Prof. V.K MAHAJAN

TABLES OF CONTENTS S.NO 1 CONTENT INTRODUCTION -Indian Banking System -Growth of Banking -Structure of Indian Banking System -Introduction of SBI -Introduction of ICCI Bank 2 Introduction of Topic -Product & Services offered by SBI -Risk Management -Product & Services offered by Icci Banks -Comparison of Loan and Advances of SBI and ICCI Banks - Advantages of ICCI over SBI & visa versa 3 4 5 Review of literature Objectives of Research Research Methodology 64 65 65-68 35-63 PAGE NO 7-34

-Types of Research - Sample Area -Sample Size -Sources of Data Collection - Sampling Technique - Limitation of Study

6 7 8 9 10 11

Data Analysis & Interpretation Findings Conclusion Recommendation BIBLIOGRAPHY Annexure-1

69-86 87 88 89 90 91-95

INTRODUCTION A bank is an institution that deals in money and its substitute and provides other financial services. Banks accepts deposits and make loans or make an investment to derive a profit from the difference in interest rate paid and charged respectively. In India the banks are being segregated in different groups. Each group has their own benefits and limitations in operating in India. Each has their own dedicated target market. Few of them only work in rural sector while other in both rural as well as urban. Many even are only catering in cities. Some are of Indian origin and some are foreign players. Indian economy has been one of the stars of global economics in recent years. It has grown by more than 9% for the three running years. The economy is a diverse as it is large, with a number of major sectors including manufacturing industries, agriculture, textile and handcrafts and services. Agriculture Is a major component of the Indian economy, as over 66% of the Indian population earns its livelihood from this area. Banking sector is considered as booming sector in Indian economy recently. Banking is a vital system for the developing economy for the nation. However, Indian banking system and economy has been facing various challenges and problems which have discussed in other part of project.

INDIAN BANKING SYSTEM Banking in India originated in the first decade of 18th century with The Great Bank of Indi coming into existence in 1786. This was followed by Bank of Hindustan. Both these banks are now defunct. The oldest bank in existence in India is the State Bank of India being established as The Bank of Bengal in Calcutta in June 1806. A couple of decade later, foreign bank like Credit Lyonnais started their Calcutta operation in 1850s. At that point of time, Calcutta was the most active trading port, mainly due to trade of the British Empire, and due to which banking activity took roots there prospered. The first fully owned was the Allahabad bank, which was established in 1865. By the 1900s, the market 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 founded under private ownership. The Reserve Bank of India formally took on the responsibility of regulating the Indian banking sector from 1935. After Indias independence in 1947, the Reserve Bank of India was nationalized and given broader powers. The public sector emerged as the driver of economic growth consequent to the industrial revolution in Europe. With the advent of globalization, the public sector faced new challenges in the developed economies. No longer the public sector had the privilege of operating in a sellers market and had to face competition both from domestic and international competitors. Further in the second half of the 20th century in the developed economies, the political opinion starts swinging towards the views that the intervention as well as investment by Government in commercial activities should reduced to the extent possible. Without a sound and effective banking system in India it cannot have a healthy economy. The banking system of India should not only be hassle free but is should be able to meet new challenges posed by the technology and any other external and
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internal factor. For the past three decade Indias banking system has several outstanding achievements to its credit. The most striking is its extensive reach. It is no longer confined to only metropolitans or cosmopolitans in India. In fact Indian banking system has reached even to the remote concerns of the country. This is one of the main reasons of Indias growth process. The governments regular policy for Indian bank since 1969 has paid rich dividends with the nationalization of 14 major private banks of India. GROWTH OF BANKING Journey of Indian Banking System can be segregated into three different phases. They are mentioned below: Phase1: Early phase from 1786 to 1969 of Indian Banks Phase2: Nationalization of Indian Banks and up to 1991 prior to Indian Banking sector reforms Phase3: New phase of Indian Banking System with the advent of Indian Financial & banking reform after 1991 PHASE1: The General Bank of India was set up in the year 1786. Next came Bank of Hindustan and Bengal Bank. The East company established Bank of Bengal (1809), Bank of Bombay (1840) and Bank of Madras (1843) as independent units and called it Presidency Banks. These three banks were amalgamated in 1920 and Imperial Bank of India was established which started as private shareholders banks, and mostly the European, Europeans-shareholders. In 1865 Allahabad Bank was established and first time exclusively by Indian, Punjab National Bank ltd was set up in 1894 with headquarters at Lahore. Between 1906 and 1913, Bank of India, Central Bank of India, Bank of Baroda, Canara Bank, Indian Bank, Bank of Mysore were set up. Reserve bank of India came in 1935.
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During the first phase the growth was very slow and bank also experienced periodic failures between 1913 and 1948. There were approximately 1100 banks mostly small. To streamline the functioning and activities of commercial banks, the Government of India came with the Banking Companies Act,1949 which was later changed to Banking Regulation Act 1949 as per amending Act 1965 (act no 23 of 1965). Reserve Bank of India was vested with extensive power for the supervision of banking in India as the Central Banking Authority. During those days pubic has lesser confidence in the banks. As an aftermath deposit mobilization was slow. Abreast of it saving bank facility provided by the postal department was comparatively safer. PHASE2 Government took major steps in India Banking Sector Reform after independence. In 1955 it nationalized Imperial Bank of India with extensive banking facilities on a large scale especially in rural areas. It formed State Bank of India to act as the principal agent of RBI and to handle bank transactions of the Union State Governments all over the country. Seven banks forming subsidiary of SBI was nationalized in 1960 on 19 July, 1969, major process of nationalization was carried out. It was the effort of the then Prime Minister of India, Mrs. Indira Gandhi 14 major commercial banks in the country were nationalized. Second phase of the nationalization Indian Banking Sector Reform was carried out in 1980 with seven more banks. This step brought 80% of the banking segment in India under Government ownership. The following are steps taken by the government of India to Regulate Banking Institutions in the country 1949: Enactment of Banking Regulation Act
1955: Nationalization of State bank of India

1959: Nationalization of SBI subsidiaries 1961: Insurance cover extended to deposits

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1969: Nationalization Station of 14 major banks 1971: Creation of credit guarantee corporation 1975: Creation of regional rural bank 1980: Nationalization of seven banks with deposits over 200 crore After nationalization of banks, the branches of the public sector bank India rose approximately 800% in deposits and advances took a huge jump by 11,000%. Banking in the sunshine of Government ownership gave the public implicit faith and immense confidence. PHASE3 This phase has introduced many more product and facilities in the banking sector in its reforms measure. In 1991, under the chairmanship of M Narasimham, a committee was set up by his name which worked for the liberalization of banking practices. The country is flooded with foreign banks and their ATM station. Efforts are being put to give satisfactory services to consumers. Phone banking, net banking is introduced. The entire system became more convenient and swift. Time is given more importance than money. The financial system of India has shown a great deal of resilience. It is sheltered from any crisis triggered by any external macro economics shock as other East Asian Countries suffered. This is all due to flexible exchange rate regime the foreign reserves are high, the capital account is not yet fully convertible and banks and their customers have limited foreign exchange exposure.

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STRUCTURE OF INDIAN BANKING SECTOR The Indian banking industry has Reserve bank of India as its Regulatory Authority. This is a mix of public sector, private sector, corporative banks and foreign banks. The private sector banks are again split into old bank and new banks.

Reserve Bank of India( central bank)

Scheduled banks

Scheduled commercial banks 1. Private Sector banks 2. Public sector banks

Scheduled Co-operative banks

Nationalized banks 3. Foreign banks 4. Regional Rural bank

SBI & its Associates

Scheduled urban co-operative bank 1. Old private sector banks 2. New private sector banks
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Scheduled co-operative bank

FACTS FILES OF BANKS IN INDIA The first bank in India to be given an ISO certificate The first bank in Northern India to get ISO certificate for their selected branches The first Indian bank to have been started solely with Indian capital The first among the private sector banks in kerala to become a scheduled Bank in 1946 under the RBI act Indias oldest, largest and most successful commercial bank, Offering the widest possible range of domestic, international and NRI products and services through its vast network in India and overseas Indias second largest private sector bank and is now the largest scheduled commercial bank in India Bank which started as private shareholders banks, mostly European shareholders The first Indian bank to open a branch outside India in London in 1946 and the first to open a branch in continental Europe at Paris in 1974 The oldest Public sector bank in India having branches all over India and serving the customer for the last 32 years The first Indian commercial bank which was wholly owned and managed by Indians Central Bank of India Allahabad Bank Bank of India founded in 1906 in Mumbai Imperial Bank of India The Federal Bank ltd State Bank Of India South India Bank Punjab National Bank Canara Bank Punjab and Sind Bank

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INTRODUCTION OF SBI (STATE BANK OF INDIA) The State bank of India, the countrys oldest bank and a premier in terms of balance sheet size number of branches, market capitalization and profits is today going through a momentous phase of change and transformation the two hundred year old public sector bank behemoth is today stirring out of its public sector legacy and moving with an ability to give the private and foreign banks a run for their money. The origin of the State Bank of India goes back to the first decade of the nineteenth century with the establishment of the Bank of Calcutta on 2- June-1806. The bank is operating into many businesses with strategic tie ups-Pension Funds, General Insurance, Custodial Services, Private Equity, Mobile Banking, Point of Sale Merchant Acquisition, Advisory Services structure products etc-each one of these initiatives having a huge potential for growth. It is also focusing at top end of the market, on wholesale banking capabilities to provide Indias growing mid/large corporate with a complete array of products and services. It is consolidating its global treasury operations and entering into structured products and derivative instruments. Today, the bank is the largest provider of infrastructure debt and the largest arranger of external commercial borrowings in the country. It is the only Indian bank to feature in the Fortune 500 list. SBI have about 8500 of its own 1000 branches and another 5100 branches of its Associate Banks, today it offers the largest banking network to the Indian customer. The bank is also in the process of providing complete payment solution to its clientele with over 8500 ATMs.
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It presently has 52 foreign offices in 34 countries across the globe. It has also 5 subsidiaries in IndiaSBI Capital Market- SBICAP Securities, SBI Discount and Finance House of India, SBI Factors and Commercial Services Pvt. Ltd , SBI Fund Management Pvt. Ltd. and SBI Cards and Payments Services Pvt. Ltd forming a formidable group in the Indian banking scenario. It is in the process of raising capital for its growth and also consolidating its various holdings

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STATE BANK OF INDIA (SBI) SBI is the Indias largest commercial bank. SBI has a vast domestic 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 India. SBI group includes a network of eight banking subsidiaries and several non banking subsidiaries offering merchant banking services, fund management, factoring services, primary dealership in government securities, credit card and insurance. The eight banking subsidiaries are 1. State Bank of Bikaner and Jaipur (SBBJ) 2. State Bank of Hyderabad (SBH) 3. State Bank of India (SBI) 4. State Bank of Indore (SBIR) 5. State Bank of Mysore (SBM) 6. State Bank of Saurashtra (SBS) 7. State Bank of Travancore (SBT) 8. State Bank of Patiala (SBP)

The origin of SBI date back to 1806 when the Bank of Calcutta (later called the Bank of Bengal) was established. In 1921, the Bank of Bengal and two other Presidency banks (Bank of Madras and Bank of Bombay) were amalgamated to form the Imperial bank of India. In 1955, the controlling interest in imperial bank of India was acquired by the Reserve Bank of India and SBI came into existence by an act of parliament as successor to the imperial bank of India.

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Today SBI has spread its arms around the world and has a network of branches spanning all time zones. SBIs International Banking group deliver the full range of cross border financial solutions through its four wings- the Domestic division, the Foreign Offices division, the Foreign offices division, the Foreign Department and international services division. SBI is the largest bank in India. If one measures by the number of branch offices and employees, SBI is the largest bank in the world. Bank of Calcutta is the oldest commercial bank in the Indian subcontinent. SBI provides various domestic, international and NRI products and services, though its vast network in India and overseas. With as asset base of Rs.1566261 (core) and its reach, it is a regional banking behemoth. The government national bank in 1955, with the Reserve Bank of India taking 60% ownership stake. In recent year the bank has focused on three priorities, (1) reducing its huge staff through Golden handshake schemes known as the Voluntary Retirement Scheme, which saw many of its best and brightest defect to the private sector, (2) Computerizing its operations (3) changing the attitude of its employees, as a large number of employees are very rude to customers.

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HISTORY The SBI traces its roots to the first decade of 19 century, when the Bank of Calcutta, later named as Bank of Bengal was established on 2 June 1806. The government amalgamated Bank of Bengal and two other presidency bank namely the Bank of Bombay and Bank of Madras, and named reorganized banking entity the Imperial Bank of India. All these Presidency bank has been incorporated as joint stock companies and were the result of the royal charter.The Imperial Bank of India as joint stock company. Until the establishment of a central bank in India the Imperial Bank and its early predecessors served as Indias central bank, at least in terms of issuing the currency. The SBI Act 1955, enacted by the Parliament of India, authorized the Reserve Bank of India, which is the central banking organization of India, to acquire a controlling interest in the Imperial Bank of India which was renamed the State Bank of India on 30 April 1955. June2,1806 The Bank of Calcutta established January2,1809 This became the Bank of Bengal April15,1840 Bank of Bombay established 1861 Paper Currency Act passed January27,1921 all three banks amalgamated to form Imperial Bank of India Jully1,1955 State Bank of India formed, become the first Indian bank to be Nationalized 1959, SBI (subsidiary bank) Act passed, enabling the State Bank of India to take over eight former State-associated banks as its subsidiaries. 1980 When Bank of Cochin in Kerala faced in a financial crisis, the government merged it with State Bank of India June29,2007 The government of India today acquired the entire Reserve Bank of India (RBI) shareholding in State Bank of India (SBI), consisting of over 314 million entity shares at a total amount of over 355 billion rupees.
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ABOUT LOGO The Place to Share the NEWs. Share the views Togetherness is the theme of this corporate loge of SBI where the world of banking services meet the ever changing customers needs and establishes a link that is like a circle, it indicates complete services towards customers. The logo also denotes a bank that is has prepared to do anything to go to any lengths, for customers. The blue pointer represent the philosophy of the bank that is always looking for the growth and newer, more challenging more promising direction. The key hole indicates safety and securities MISSION, VISION & VALUES

MISSION STATEMENT To retain the Banks position as premiere Indian Financial Service Group, with world class standard and significant global committed to excellence in customer, shareholder and employee satisfaction and to play a leading role in expanding and its diversifying financial service sectors while containing emphasis on its development banking rule.

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VISION STATEMENT Premier Indian Financial Service Group with prospective world-class standards of efficiency and professionalism and institution values Retain its position in the country as pioneers in development banking. Maximize the shareholders value through high-sustained earning per shares. An institution with cultural mutual care and commitment, satisfying and Good work environment and continues learning opportunities.

VALUES Excellence in a customer service Profit orientation Belonging commitment bank Fairness in all dealings and relations Risks taking and innovative

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INTRODUCTION OF ICICI BANK ICICI Bank was originally promoted in 1994 by ICICI Limited, as Indian Financial Institution and was wholly owned by subsidiary. ICICIs shareholding in ICICI Bank was reduced to 46% through a public offering shares in India in fiscal 1998. ICICI Bank is India's largest private sector bank with total assets of Rs. 5,367.95 billion (US$ 99 billion) at March 31, 2013 and profit after tax Rs. 83.25 billion (US$ 1,533 million) for the year ended March 31, 2013. The Bank has a network of 3,620 branches and 11,292 ATMs in India, and has a presence in 19 countries, including India. ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialized subsidiaries in the areas of investment banking, life and non-life insurance, venture capital and asset management The Bank currently has subsidiaries in the United Kingdom, Russia and Canada, branches in United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International Finance Centre and representative offices in United Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia. Our UK subsidiary has established branches 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 American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE)..

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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 all-stock amalgamation in 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 providing medium-term and long-term project financing to Indian businesses. In the 1990s, ICICI transformed its business from a development financial institution offering only project finance to a diversified financial services group offering a wide variety of products and services, both directly and through a number of subsidiaries and affiliates like ICICI Bank. In 1999, ICICI become the first Indian company and the first bank or financial institution from non-Japan Asia to be listed on the NYSE. After consideration of various corporate structuring alternatives in the context of the emerging competitive scenario in the Indian banking industry, and the move towards 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 alternative for both entities, and would create the optimal legal structure for the ICICI group's universal banking strategy. The merger would enhance value for ICICI shareholders through the merged entity's access to low-cost deposits, greater opportunities for earning fee-based income and the ability to participate in the payments system and provide transaction-banking services. The merger would enhance value for ICICI Bank shareholders through a large capital base and scale
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of operations, 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 talent pool of ICICI and its subsidiaries. In October 2001, the Boards of Directors of 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 shareholders of ICICI and ICICI Bank in January 2002, by the High Court of Gujarat at Ahmedabad in March 2002, and by the High Court of Judicature at Mumbai and the Reserve Bank of India in April 2002. Consequent to the merger, the ICICI group's financing and banking operations, both wholesale and retail, have been integrated in a single entity. ICICI Bank has formulated a Code of Business Conduct and Ethics for its directors and employees

VISION To be the leading provider of financial services in India and a major global bank. To be the preferred brand for the total financial and banking solution for both corporate and individuals. To be the dominant life, health, pension player built on trust by world-class people and service. This we hope to arrive by Understanding the needs of customers and offering them superior products and services

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 Leveraging technology to service customer quickly, efficiently and conveniently Developing and implementing superior risk management and investment strategies to offer sustainable and stable returns to our policy holders Providing an enabling environment to foster growth and learning for our employees And above all, building transparency in all our dealing MISSION We will leverage our people, technology, speed and financial capital to Be the banker first choice for our customers by delivering high quality world-class product and services Expand the frontiers of our business globally. Play a proactive role in the full realization of Indias potential Maintain a healthy financial profile and diversify our earnings across businesses and geographies. Maintain high standards of governance and ethics. Contribute positively to the various countries and markets in which we operate Create value for our stakeholders Provide the social facilities to the society In order to build some brand equity by doing social service, ICICI Bank has decided to undertake a Mission for reducing low birth weight incidence at the village level.

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SUBSIDIARIES ICICI Bank Limited have the following subsidiaries 1. ICICI Securities 2. ICICI Prudential Life Insurance Company 3. ICICI Venture 4. ICICI Lombard General Insurance Company ICICI Securities ICICI Securities has been at the forefront of capital markets advisory for several decades and has also been involved in most of the major public equity issuances in recent times. The company was among the leading underwriters of Indian equity and equity linked offerings with unparalleled execution capabilities. ICICI Securities provides end-to-end fund raising solutions, from structuring to placement of the equity instrument. The firm's expertise include Initial Public Offerings (IPOs), Further Public Offerings (FPOs), Rights Offerings, Convertible Offerings, Qualified Institutional Placement (QIP), Non-convertible Debentures, Buyback, Delisting, Open Offers and international offerings, for both, unlisted and listed entities. ICICI Securities has successfully managed public issues of companies which were the first in their sector to tap the market - media both print and television, first Govt. of India divestment IPO, first pure-play internet company in India, first mobile VAS company, etc. ICICI Securities was also involved in various pioneering issues in the Indian capital markets - the first issue using the new alternate book-building (French Auction) method (NTPC), the first issue of shares with Differential Voting Rights (Tata Motors), the first public issue of Non-Convertible Debentures (Tata Capital), the first delisting using the reverse book-building mechanism (Hewlett-Packard), etc.
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With offices across major financial centers (New York, Singapore, Mumbai and Delhi), ICICI Securities delivers its products covering corporate and investors across geographies. ICICI Securities' Mergers and Acquisitions Advisory team creates and executes market leading solutions for clients' strategic business ambitions. Our mid-market focused M&A practice is consistently among the top 3 investment banks in India. The M&A team is proficient in domestic and international transactions including acquisitions, divestitures, joint ventures, corporate restructurings, recapitalizations, spin-offs, mergers and exchange offers. The team also works closely with the leading financials sponsors or private equity houses in India. Our extensive knowledge of diverse industries and regulatory framework help us innovate and tailor products and structures to best suit the client short- and longterm strategic objectives. ICICI Securities has a dedicated practice to assist companies with capital mobilization through the private equity / venture capital route across their lifecycle. We help companies to raise capital during the seed, growth and expansion phases as well as acquisition financing, structuring the deal to maximize value for all its stakeholders. Our extensive industry knowledge across multiple sectors, wide-ranging deal structuring capabilities and thorough grasp of the regulatory environment make us the 'banker of choice', for companies and private equity funds alike. We have working relationships with all major private equity players, both in India and abroad and can facilitate access for our clients to these investors. We advice on a wide variety of products including mezzanine and private equity financing, secondary sale transactions, pre-IPO deals and preferential allotments by listed companies.
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ICICI Prudential Life Insurance Company ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, India's foremost financial services companies, and prudential plc, a leading international financial services group headquartered in the United Kingdom. While ICICI retains 74% stake in the joint venture, prudential plc has the remaining 26% stake. ICICI Prudential began its operations in December 2000. Today, this company has over 1,900 branches (inclusive of 1,074 micro-offices), over 210,000 advisors and 6 branch assurance partners. ICICI Prudential Life Insurance Company is the first life insurer in India that received a National Insurer Financial Strength rating of AAA (Ind) from Fitch ratings. ICICI Prudential has been voted as India's Most Trusted Private Life Insurer for three consecutive years. This company provides various insurance plans that have been designed for different individuals, as every individual has different insurance needs. It celebrated its 10th anniversary on 12th December 2010. Given below is a list of plans provided by ICICI Prudential Life Insurance Company: All ULIPs Unit linked insurance plans (ULIPs) are a category of goal-based financial solutions that combine the safety of life insurance protection and long term wealth creation opportunities. In ULIPs, a part of the premium goes towards providing you with life cover while the remaining portion is invested in fund(s) which, in turn, are invested in stocks or bonds.

Retirement Wealth Child Health

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Life Insurance Plans Term Plans Term insurance is the simplest and most fundamental insurance product available at extremely affordable prices. In this type of a policy, an individual pays a fixed amount of money periodically and in the unfortunate event of death of the policyholder, the entire amount paid, along with some other benefits and interest, is paid back to the deceased's family.

ICICI Pru iProtect ICICI Pru Pure Protect ICICI Pru LifeGuard ICICI Pru Home Assure

Wealth Plans Wealth insurance plans are essentially long term savings plans which are designed to help you save enough for your long term goals, like owning a house or a car etc, along with providing you the benefit of life cover and protection for your family.

ULIP Wealth Plans

ICICI Pru LifeStage Wealth II ICICI Pru Pinnacle II ICICI Pru LifeTime Premier ICICI Pru Life Link Wealth SP ICICI Pru Pinnacle Super

Traditional Wealth plans

ICICI Pru Future Secure

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ICICI Pru Guarenteed Savings Insurance Plan ICICI Pru Whole Life ICICI Pru SavenProtect ICICI Pru CashBak

Child Plans Regardless of the rising cost of education in modern times, a parent never compromises on the expenditure that goes into his/her child's bright career. A saving's plan that is designed to provide money at key educational milestones and take care of your loved ones future even if you are not around, is a wise decision to make. In this plan, you pay premium periodically, or in lump sum, and during the key educational milestones of your child, you can withdraw the money partially. Traditional Child Plans

ICICI Pru SmartKid Regular Premium

Unit Linked Child Plans

ICICI Pru SmartKid Premier

Health Plans Predicting unfortunate medical emergencies is difficult. Bearing the expenses of the costly treatment is not at all easy and therefore, ICICI Prudential has come up with health insurance plans that insure you and your family against expenses arising due to medical emergencies and uncertainties such as hospitalisations or onset of critical illnesses.

Hospitalisation Plans

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ICICI Pru Health Saver ICICI Pru Hospital Care II

Critical Illness Plans

ICICI Pru Crisis Cover

Riders ICICI Prudential gives you the freedom to form your very own comprehensive insurance policy by adding the rider benefits to the basic life insurance policy. This increases the scope of your policy, at a nominal cost.

Critical Illness Benefit Rider Accident & Disability Benefit Rider Income Benefit Rider Waiver of Premium Rider (WOP) Waiver Of Premium On Critical Illness Rider

Retirement Plans Financial independence at all times is important but its importance is the most in the post-retirement phase of life. After being self-dependant for a lifetime, the idea of depending upon your children can be quite putting off. Retirement plans from ICICI Prudential Life Insurance, ensure that you have enough flexibility to choose your retirement date and the manner in which you receive the pension.

ULIP Retirement Plans

ICICI Pru LifeLink Pension Sp

Traditional Retirement Plans

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ICICI Pru ForeverLife ICICI Pru Immediate Annuity

Group Plans Group Insurance Plans from ICICI Prudential enable the employer to effortlessly provide his/her employees with both, savings and security, so they can pass on the benefits to their loved ones.

Retirement Solution

Group Gratuity Plan Group Leave Encashment Plan

Protection Solution

Annuity Solutions Group Term Insurance Plans Group Term in lieu of EDLI Scheme Credit Assure Utility

Rural Plans ICICI Prudential's rural business initiative has covered more than 2.5 million lives across as many as 16 states in India. The plans offer Life cover, low and affordable premiums and hassle free procedure.

ICICI Pru Sarv Jana Suraksha ICICI Pru Anmol Nivesh

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ICICI Venture ICICI Venture is a specialist alternative assets manager based in India. The firm is a wholly owned subsidiary of ICICI Bank, the largest private sector financial services group in India. ICICI Venture has been at the forefront of driving entrepreneurship in India for over two decades, both as a partner and capital provider for individuals with a clear common objective, the passion to pursue business ideas in the quest for creating value for all stakeholders and for the larger good of the nation. Till date, various funds managed by the firm have invested in over 500 companies. ICICI Venture continues to remain committed to this mission. The firm has played a key role in establishing the foundation for several new age businesses in India, by providing growth capital funding to companies in sectors as diverse as Information Technology, Life Sciences and Healthcare, Media & Entertainment, Banking & Financial Services, Infrastructure, Retail, Aviation, Auto Components, Construction services, Real Estate, Biotechnology, Textiles, Fine Chemicals, Consumer Products, Logistics, etc. The firm played a pioneering role in the Indian Venture Capital industry during the 1990s but shifted focus to other alternative asset classes during the past decade in line with the evolution of Indian industry. Across sectors, the firm has helped in establishing several new business models to enable productivity improvements, technology upgradation and import substitution as a means of enhancing the competitive advantage of Indian industry in a rapidly changing global market environment. The firm is widely regarded as a prime mover in the Indian alternative assets industry, having established a successful track record of investing and nurturing companies across economic cycles and across various classes of alternative assets such as Private Equity, Real Estate and Mezzanine Finance, with Infrastructure &
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Special Situations being the latest additions to its spectrum of activities. Going forward, the firm continues to explore new avenues within the alternative assets industry as a means of addressing funding requirements of Indian entrepreneurs and also as a means of offering a comprehensive alternative asset management platform to long term investors who are interested in participating in India's economic development. ICICI Lombard General Insurance Company ICICI Lombard GIC Ltd. is a joint venture between ICICI Bank Limited, India's second largest bank with total assets of over USD 99 billion as on March 31, 2013 and Fairfax Financial Holdings Limited, a Canada based USD 37 billion diversified financial services company engaged in general insurance, reinsurance, insurance claims management and investment management. ICICI Lombard GIC Ltd. is the largest private sector general insurance company in India with a Gross Written Premium (GWP) of Rs 64.20 billion for the year ended March 31, 2013. The company issued over 9.18 million policies and settled over 5.07 million claims as on March 31, 2013. ICICI Lombard received the highest rating in terms of overall customer satisfaction as well as 'The most Recommended Company' in a 2013 survey to assess Customer satisfaction and Quality of Health insurance in India, commissioned by Dept. of Consumer Affairs, Ministry of Consumer Affairs. The company has also been conferred the "ASTD BEST Award 2012" for Learning and Development, "Porter Prize 2012" for creating Shared Value, "Golden Peacock Award 2012" for Corporate Social Responsibility and "Golden Peacock Innovation Award-2010" for Rashtriya Swasthya Bima Yojana. It also received the "Product of the Year" award in the General Insurance category for FY2012-13 and was voted the No 1 Health Insurance Product in a survey of 18,000 people over 23
33

cities in India, a study done by Nielsen. The company has been conferred with 'Client Asia Insurance Technology Award 2012' under the category Best Mobile Applications. ICICI Lombard offers a range of products and services which include: Health Insurance Home Insurance Motor Insurance Overseas Travel Insurance Student Medical Insurance Domestic Travel Insurance Fire Insurance Marine Insurance Industrial Insurance Corporate Insurance Liability Insurance Credit Insurance Shop Insurance

34

Products and Services Offered by SBI Terms deposit scheme Recurring deposit schemes Loans SBI SARAL Personal Loan Education loan Car loan Home loan Mede- Plus loan

TERM DEPOSIT SCHEME Provide security, trust and competitive rate of interest Flexibility in period of term deposit from 15days to 10 years Affordable low minimum deposit amount One can open a term deposit with SBI for a normal amount of Rs.1000/only Flexibility in choosing the amount one wish to invest and maturity period Benefits Of Scheme Safety- SBI is continues to deliver on its promise of safety and security over 200 years Liquidity Loan/Overdraft Facility- One can avail a Loan/Overdraft against his deposit. SBI provides loan/overdraft up to 90% of deposit amount at
35

nominal cost. So one can continue to earn interest in his deposit and still can meet his urgent financial requirement. Premature Withdrawal- Interest to be charged on a premature withdrawal of term deposit at 1.00% below the rate applicable for the period deposit has remained with the bank. Transferability- Transfer of term deposits between wide networks of branches without any charge Compounding/Flexible/Time Payment of Interest - Under special term deposit scheme, interest accrues in account and get compounded quarterly - Term Deposit are available at all SBI branches - Easy and convenient access of information at SBI internet banking Tax implication- Tax deductible at source, as per Income Tax act Flexibility to convert special term deposit to term deposit and visa- versa - One can convert his special term deposit to a term deposit to receive monthly/quarterly interest payment to match his financial requirements. - One can also convert his term deposit to a special term deposit, which provide compounded rate of interest to multiply his money faster. RECURRING DEPOSIT Recurring deposit refers to a little investment by an investor to meet his financial goals of future (childrens education or marriage, buy a car etc). recurring deposit provide the element of compulsion to save at high rate of interest, wide choice in period of deposit

36

Features Flexibility in period of deposit with maturity ranging from 12 months to 120 months Low minimum deposit amount One can start a recurring deposit with SBI for a monthly installment of Rs.100/- only. Benefits Including all the benefits to terms deposits there are some more benefits of recurring benefits Nomination facility is available In this scheme One save a monthly installment of multiple of every month One can monitor his deposit through SBI internet banking or through a passbook issued to you LOAN TYPE AMOUNT MIN MAX SBI SARAL PERSONAL LOAN 10,00,000 10,000RATE OF INTERE ST 17.75 % NIL A person having a good profession and income SECURITY ELIGIBILITY

37

EDUCATIO N LOAN

4,O0,000 4,00,0007,50,000

12.25% 13.75%

NIL Total collateral security

Graduation course Post graduation professional course Other course approved by

12.25% 4,00,0007,50,000 Car loan Used vehicle Up to 3 years 15,00,000 Above 3 years New Vehicle Up to 3 years 1 2 Above 3yrs 7,50,000 7,50,000 15,00,000 15,00,000 15,00,000 12.50% 12. 75% 13% 12. 75% 16.50% 15,00,000 16.25% 15,00,000

Suitable third party guarantee As per banks Extant instruction

UGC/government/AICTE/et c

Person having a income below 1,00,000

38

3-5yrs 5-7yrs Home Loan Up to 5years 5 to 15 years Up to 15 years 30,00,00075,00,000 11. 7512% 30,00,000 30,00,00075,00,000 10. 7511.50% 10.5011. 75% Availability Equitable mortgage of the

of sufficient property or other tangible regular and continuous source of income for servicing the loan repayment Age 18-60 years MEDEPLUS LOAN 50,0002,00,000 14.50% As per banks extant instructions Govt. employee from 10 years self employed professional employee/agent(income>3la khs) security of adequate value like Nscs, Life insurance policies etc, if the property cannot be mortgaged

39

SERVICES Domestic treasury SBI Vishwayatra foreign travel card Booking services Revised service charges ATM services Internet Banking E-pay E-rail RBIFT Safe deposit locker Gift Cheques Micro codes Foreign inward remittance ATM SERVICES State bank networked ATM services State Bank offers you the convenience of over 21000 ATMs in India, already the largest network in the country and continuing to expand fast!

This means that you can transact free of cost at the ATMs of State Bank Group (This includes the ATMs of State Bank of India as well as the Associate Banks namely, State Bank of Bikaner & Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of Patiala, and State Bank of Travancore), using the State Bank Cash Plus card.
40

E-PAY Bill payment at online SBI (e-pay) will let you to pay your telephone, mobile, electricity, insurance and credit card bill electronically over online SBI websites E-RAIL Book the railway ticket online The facility has been launched on 1september2003 in association with IRCTC. The scheme facilities booking railway tickets online. SAFE DEPOSIT LOCKER For the safety of customer valuable we offer our customers safe deposit vault or locker facilities at a large number of our branches. There is a nominal annual charge, which depends on the size of the locker and the center in which branch is located RISK MANAGEMENT An independent risk governance structure in line with the international best practices has been put in place in the bank. In view of the growing volume and complexity in business risk, management has assumed critical importance. Accordingly, the bank has elevated the risk function of board level by appointing the Managing Director as Chief offer to ensure this crucial function gets the importance it deserves.

41

The bank has broad approved policies and procedures in place to measure, manage, mitigate, various risk such as credit, market, operational, Liquidity, and interest rate risk across all its portfolios. The Risk Management Committee of the board oversees the policy and strategy for risk management. In addition, various risk committees, namely the credit risk management , asset liability, Market risk management and operational risk management committees are in place to monitor risk in their respective area on an ongoing basis. CREDIT RISK MANAGEMENT Credit risk management processes encompasses identification, assessment, measurement, monitoring and control of the credit exposures. The bank has multiple Credit Risk Assessment model in place covering Manufacturing, Trade, Non-banking Financial Corporations, banks and primary dealers. The credit risk models developed for manufacturing and trading sectors have been refined to conform to the requirements under advanced internal based approach of base1 II. The other models are also begin reviewed. The bank conducts industry studies to access the risk prevalent in each industry and also gives guidelines to operating functionaries in leading to these industries. Industry wise exposure limit are fixed and monitored regularly. The bank manages its portfolio of loan assets with a view to limiting concentration in term of risk quality, geography, industry, maturity, and large exposure.

42

MARKET RISK MANAGEMENT Market risk is the risk that the value of the on and off balance sheet position of the bank will be adversely affected by the movements in market variables viz interest rates, exchange rates and equity and commodity prices. Market risk management is governed by board approved Policies for investment and trading in Bonds, Equities and Foreign exchange. The identification, measurement, monitoring and reporting of market risk is done by the market risk management department which is part of the independence risk governance structure of the bank. Exposure, stop loss and duration limits have been prescribed. These limits along with other management action trigger are traced daily and necessary action initiated as requires to control and manage market risk. In addition, value at risk is generated on a daily basis for the purpose of closing monitoring back testing of value at risk number is also carried out due to validate these measurements. The portfolio is also subjected to stress testing under various scenarios so that a proper understanding of the potential losses under extreme price movements is always kept in view.

43

OPERATIONAL RISK MANAGEMENT Operational risk is the risk of losses resulting from inadequate or failed internal processes people and system or from external events. Operational risk includes legal and regulatory risk but excludes strategic and reputation risks. The bank manager operational risks by putting in place and maintaining a comprehensive system of internal control and policies. The operational risk management policy of the bank establishes a consistent framework for systematic and proactive identification, assessment, measurement, monitoring and mitigating of operation risk. The policy applies to all business and functioning area within the bank and is supplemented by operational systems, procedures and guidelines which are periodically updated. All key processes, risks and controls are documented and periodic assessment of risks and control are carried out. The bank has initiated steps for creation of loss database with a view to graduate to advanced measurement approaches under base II guidelines The objective of this is to continuously review system and control mechanism, create awareness of operational risk throughout the bank, assign risk ownership, alignment risk management activities with business strategy and ensuring compliance with regulatory requirements.

44

PRODUCTS AND SERVICES OF ICICI ICICI Bank offers a wide range of banking products and financial services to dynamics. ICICI banks also the largest issuer of credit cards in India. Corporate and retail customer through a variety of delivery channels and specialized subsidiaries and affiliates in area of investment banking, life and non- life insurance, venture capital and asset management. PRODUCT OF ICICI TYPES OF ACCOUNTS Saving Account - A saving account for everyone with a host of convenient features and banking channels to transact through. So now you can bank at your convenience, without the stress of waiting in queues. Life-Plus- Senior Citizen Saving Account- we understand a saving account need to do more after your reach the age of seniority, we understand your concerns for safety and security. The senior citizen service from ICICI bank has several advantages that are tailored to bring more convenience and enjoyment in life. Young Star Saving Account- Its really very important to help children learn the value of finances and money management at an early age. Banking is a serious business, but we make banking a pleasure and at a same time fun. Children learn how to manage their personal finances Recurring Deposit Account when expenses are high, you may not have adequate funds to make big investments. An ICICI Banking Recurring Deposit let you invest
45

small amount of money every month that ends up with a large saving on maturity. So you enjoy twin advantages- affordability and higher earning. Fixed Deposit Account - Safety, flexibility, liquidity and return. A combination of unbeatable features of the fixed deposit from ICICI bank. CARDS CREDIT CARDS- give you a smart way to shop and offer you flexibility and convenience in managing your finances. ICICI bank credit card provide a host of exciting offers and benefits such as low interest rates, rewards programs, high credit and cash limit. We offer different type of credit card to suit the different needs and requirements for added features. TRAVEL CARD- Presenting ICICI Bank travel card. The hassle free way to travel the world. Travelling with US dollar, Euro, Pound Sterling or Swiss Francs; Looking for security and convenience; take ICICI Bank travel card. Issued in duplicate, Offers the pin bases security. Has the convenience of usage of credit or debit card. DEBIT CARD- The ICICI bank debit card is a revolutionary form of cash that allows customers to access their bank around the clock, around the world. The ICICI bank debit card can be used for shopping at more than 3.5 Lakh merchants in India and 24 million merchant worldwide. COMMERCIAL CARD- ICICI bank commercial cads have been designed as payment solution for large and mid-sized organization. A widely accepted concept internationally, commercial cards help to better streamline payment processes and thus increases efficiencies.

46

MERCHANT SERVICE Give your customer quick and convenient way to make payments. With ICICI banks two payment acceptance solution, enjoy business like never before. POS Machine at your retail establishment will assist you to accept cards. Pay seal, online payment gateway will make e-commerce more convenient, easy and secure on interest your business can only get bigger and better LIFE INSURANCE INVESTMENT And SAVING PLANS- Endowment policies are good way of putting aside your saving today for a future goal-whether its to buy house in India or fund your entrepreneurial vision. Our saving-oriented policies are designed to make your saving grow and have them available to you at the end of a fixed number of years or through the term of the plan. Life time II- A complete marketlinked insurance plane that adapts itself to your changing protection and investment need, throughout a life time. Invest Shield Gold- A unit-linked insurance plan with an assurance of capital guarantee, which offers you the benefit of a limited premium payment and coverage term. Premier Life- A market linked insurance plans that meet your investment and protection needs. RETIREMENT PLANS Many of us picture ourselves enjoying the fruits of our labor after retirementgoing on a dream vacation, or helping our childs career take wing. Financing all this will depend on our personal saving and investments so its important to save for future from today. Our retirement plans are designed to help you systematically save, so that you can enjoy all the things you have dreamed of when you retire.

47

Life pension II At a regular premium linked deferred pension plan that gives you that freedom to choose the amount of premium, and invest in market-linked funds, to generate potentially higher return. CHILD PLANS As responsible parents, you want to ensure a hassle free, successful life for your child. However, life is full of uncertainties and even the best-laid plans go wrong. Smart kid education plans are designed to provide flexibility and to safeguard your childs future education and lifestyle taking all possibilities into account. Smart kid child plan has a bouquet of three products which can help you secure your childs education - Unit-linked regular premium - Unit-linked single premium - Regular premium smart kid DEMAT SERVICE Feature of DEMAT Service E- INSTRUCTIONS. You can transfer securities 24 hours a days, 7days a week through internet and interactive voice response at a lower cost. Now with speak to transfer, you can also transfer or pledge instructions through our customer care officer. CONSOLIDATION -DEMAT ACCOUNT: dematerialize you physical share in various holding pattern and consolidate all such scattered holding into your primary DEMAT account at reduced cost.

48

DIGITALLY SIGNED STATEMENT: Receive your account statement and bill by email. CORPORATE BENEFIT TRACKING: Track your dividend, interest, bonus through your account statement. MOBILE REQUEST: Access your demat account by sending SMS to enquire about holding, transaction, bill and ISIN details MOBILE ALERTS: Receive SMS alerts for all debits/credits as well as for any request which cannot be processed Dedicated customer care executive specially trained at our call centre, to handle all your queries Country wide network of over 300 branches, you are never far form an ICICI bank Demat services outlet. LOANS HOME LOANS- The number1 home loan provider in the county, ICICI bank home loans offer some unbeatable benefits to its customers- doorstep service, simplified documentation and guideline throughout the process. PERSONAL LOAN- If you are looking for a personal loan thats easy to get. ICICI bank personal loans are easy to get and absolutely hassle free. With minimum documentation you can now secure a loan for an amount up to Rs.15 lakh.

49

 CAR LOAN- The most preferred financier for car loan in the country. Network of more than 1000 channel partner in over 2000 locations. Ties ups with all leading automobile manufacturers to ensure the best deals COMMERCIAL VEHICLE LOAN- Range of service on existing loans and extended product like funding a new vehicles, refinance on used vehicle, balance transfer on higher cost loans, top up on existing loans, extend product, working capital loan and other banking products FRAME EQUIPMENT LOAN- Preferred financier for almost all leading tractor manufacturers in the country. Flexible payment option in tandem with the framers seasonal liquidity. Monthly, quarterly and half-yearly repayment patterns to choose from comfortable repayment tenures from 1 years to 9 years BUSINESS INSTALMENT LOAN- help the entities take a giant strides by fulfilling their business requirement be its working capital requirement, business expansion or to grab that once in lifetime business opportunity TYPE AMOUNT MIN MAX PESONAL LOAN EDUCATION 4,00,000 LOAN 4,00,0007,50,000 For all 1012% Tangible collateral Post graduation professional
50

RATE OF INTEREST

SECURITY

ELIGIBILITY

15,00,OOO

Nil

Graduation course

4,00,00007,50,000

security Suitable third

course Other course

party gurantee approved by UGC/government AICTE etc Car loan 15,00,000 11-13% As per the extent instruction Home loan 7,50,000 11.5-12.5% Availability of sufficient, regular and continues source of income for servicing the loan repayment Person having the income below 100,000 Equitable mortgage of property or other tangible security of adequate value like nsic life insurance policy etc. the property mortgage

51

RISK MANAGEMENT Risk is an integral part of the banking business and ICICI bank aims at the delivery of superior shareholder value by achieving an appropriate trade-off between risk and returns. ICICI bank is exposed to various risks, including credit risk, market risk and operational risk. Our risk management strategy is based on a clear understanding of various risks, disciplined risk- assessment and measurement procedures and continuous monitoring. The policies and procedures established for this purpose are continuously benchmarked with international best practices. A comprehensive range of quantitative and modeling tools developed by a dedicated risk analytics team supports the risk management function at ICICI bank. The risk, compliance and audit group is responsible for assessment, management and mitigation of risk in ICICI bank. This group, forming a part of corporate centre, is completely independent of all business operations and accountable to the risk and audit committees of board of directors RCAG is organized into six subgroups. Credit risk management group, credit policies group, internet audit group, retail risk group and risk analytics group. CREDIT RISK MANAGEMENT Credit risk is the risk that a borrower is unable to meet its financial obligations to the lender. ICIC bank measures, monitors and mangers credit risk for each borrower and also at the portfolio level. ICICI bank has standardized credit approval process, which includes a well established procedure of comprehensive credit appraisal and rating. ICICI bank has developed internal credit rating methodologies for rating obligators as well as product/facilities. The rating factors in quantitative and qualitative issues and credit enhancement features specific to
52

the transaction. The rating serves as a key input in the sanction as well as postsanction credit processes. Credit rating, a as concept, has been well internalized within the bank. The rating for every borrower is reviewed as least annually and for higher risks credits and large exposure at shorter intervals. Sector knowledge has been institutionalized across ICICI bank through the availability of sector specific information on the intranet. Industry knowledge is constantly updated through field visits, interactions with clients, regulatory bodies and industry experts. In respect of retail credit business, ICICI bank has a system of centralized approval of all products and policies and monitoring of retail portfolio. We continuously refine our retail credit parameters based on portfolio analytics.

MARKET RISK MANAGEMENT Market risk is the loss of resulting from changes in interest rates, foreign currency exchange rates, equity price and commodity prices. HDFC banks exposure to market risk a function of its trading and asset and liability management activities and its role as a financial intermediary in customer-related transactions. The objective of market risk management is to minimize the impact of loss due to market risks on earning and equity capital. Market risk policies include Asset-liability Management policies and policies for trading portfolio. The Asset-Liability Management Committee of board of directors approves ALM policies. ALCOs role encompasses stipulating liquidity and interest-rate risks limits, monitoring risk levels by adherence to set limits anticipating the organizations interest rate view and determining business strategy in light of current and expected business environment. These set of policies and
53

processes are articulated in ALM policy. A separate set of policies for trading portfolio address issues related in ALM policy. A separate set of policies for trading portfolio address issues related to investments in various trading products and approved by the Committee of Director of the board. RCAG exercises independent control over the process of market-risk management and recommends changes in processes and methodologies for measuring market risk. OPRATIONAL RISK MANAGEMENT Operational risk can result from variety of factors, including failure to obtain proper internal authorization, improperly documented transaction failure of operational and information security procedures, computer system and software or equipment, fraud, inadequate training and employee errors. We attempt operational risk by maintaining a comprehensive system of internal controls, establishing systems and procedures to monitors transactions, maintaining key back up procedures and undertaking regular contingency planning. The middle office group monitors adherence to credit procedures. The international audit group undertakes a comprehensive audit of all business group and other functions, in accordance with a risk based audit plan. This plan allocates audit resources based on an assessment of the operational risks in various businesses. ICICI bank has been pioneer in the implementation of a risk-based audit methodology in the Indian banking sector. The international audit group conceptualizes and implements improved system of internal control to minimize operational risk.

54

COMPARISON OF LOAN AND ADVANCES OF SBI AND ICICI BANKS For the year 2006 NAME OF THE BANK STATE BANK OF INDIA ICICI BANK AMOUNT OF ADVANCES 1377588.6 52474.48

amount of advance
160000 140000 120000 100000 80000 60000 40000 20000 0 sbi icici sbi icici

For the year 2007 NAME OF THE BANK STATE BANK OF INDIA ICICI BANK AMOUNT OF ADVANCES 15933.54 60757.36

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AMOUNT OF ADVANCES
180000 160000 140000 120000 100000 80000 60000 40000 20000 0 SBI ICICI SBI ICICI

For the year 2008 NAME OF THE BANK STATE BANK OF INDIA ICICI BANK AMOUNT OF ADVANCES 202374.46 88991.75

56

AMOUNT OF ADVANCES
250000

200000

150000 SBI 100000 ICICI

50000

0 SBI ICICI

For the year 2009 NAME OF THE BANK STATE BANK OF INDIA ICICI BANK AMOUNT OF ADVANCES 261641.54 143029.89

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AMOUNT OF ADVANCES
300000 250000 200000 150000 100000 50000 0 SBI ICICI SBI ICICI

For the year 2010 NAME OF THE BANK STATE BANK OF INDIA ICICI BANK AMOUNT OF ADVANCES 337336.49 164484.3

58

AMOUNT OF ADVANCES
400000 350000 300000 250000 200000 150000 100000 50000 0 SBI ICICI SBI ICICI

For the year 2011 NAME OF THE BANK STATE BANK OF INDIA ICICI BANK AMOUNT OF ADVANCES 366435.68 225616

59

AMOUNT OF ADVANCES
400000 350000 300000 250000 200000 150000 100000 50000 0 SBI ICICI SBI ICICI

For the year 2012 NAME OF THE BANK STATE BANK OF INDIA ICICI BANK AMOUNT OF ADVANCES 448448.52 179269

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AMOUNT OF ADVANCES
500000 450000 400000 350000 Axis Title 300000 250000 200000 150000 100000 50000 0 AMOUNT OF ADVANCES SBI 448448.52 ICICI 179269

INTERPRETATION Considering the above data we can say that year on year the amount of advances lent by State Bank of India has increased which indicates that banks business is really commendable and credit policy it has maintained is absolutely good. Whereas ICICI bank do not have good business SBI is ahead in term of its business when compared to ICICI bank, this implies that SBI has incorporated sound business policies in its banks.

61

ADVANTAGES OF ICCI OVER SBI ICICI is growing at very fast rate with a total asset of Rs. 5,367.95 billion. In the area of human relations, the two are taking divergent path. SBI, which had over 1lakhs employees, has reduced headcount through a voluntary retirement scheme and is cautious about adding headcount. ICICI bank, on the other hand is setting up regional hubs where its workforce would be concentrated and plans to add 20,000 to its headcount every year. The group plan to add between 75,000 and 1,00,000 employees in next few years. ICICI bank is also set to outdo SBI in its international bank. - An area where it has been very aggressive.

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ADVANTAGES OF SBI OVER ICICI SBI is the largest and oldest bank of India. Its major stocks are held by government of India. So this bank enjoys the trust of its customers a lot. SBI is more flexible tenure of loan repayment. SBI has a vast experience in the field of SME (Small and Medium Enterprises) financing. As it is the oldest name so it enjoy public trust a lot SBI have four national level apex training colleges and 54 learning centers spread all over the country the bank is continuously engaged in skill enhancement of its employees. Some of the training programs are attended by bankers from banks in other countries. SBI group, which has over 10,000 branches, is planning to add another 3,000 branches It is also set to become the largest issuer of debit cards and is the second largest credit card issuer.

63

REVIEW OF LITERATURE The banking sector in India has made remarkable progress since the economic reform in 1991. New private sector banks have brought the necessary competition into the industry and spearheaded the changes towards high utilization of technology, improved customer service and innovative products. Customers are now becoming increasingly conscious of their rights and are demanding more than ever before. The recent trends show that most banks are shifting from product centric model to 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 factors that are essential in influencing the investment decision of the customers of the public sector banks. For this purpose, Factor Analysis, which is the most appropriate multivariate technique has been used to identify the groups of determinants. Factor analysis identifies common dimensions of factors from the observed variable that link together the seemingly unrelated variable and provide insight into the underlying structure of data. Secondly, this study also suggest some measures to formulate marketing strategies to lure customers towards banks.

64

OBJECTIVE OF RESARCH The objectives of this research are as follows: To study the comparative analysis between SBI and ICICI bank on the basis of customer satisfaction, lending schemes and risk management To know customer awareness regarding the product and services of SBI and ICICI bank To find the advantages of SBI over ICICI bank and vice versa. To know the preference of loan and advances of SBI over ICICI

65

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

66

SAMPLE AREA GHAZIABAD SAMPLE SIZE This refers to the number of items to be selected from the universe to constitute sample. In our research sample size is 100 to know the customer satisfaction and perception about the banks. STATISTICAL TOOL I have applied 3 techniques in my project 1. Weighted average method 2. Rank correlation method 3. Chi square test SOURCE OF DATA COLLECTION While deciding about the method of data collection to be used for study the researcher should keep two types of data 1. Primary Data 2. Secondary Data I used in my research primary data as well as secondary data. Primary means collected a fresh and first time data will use Questionnaire and secondary means which are already available like annual report, magazines, internet etc.
67

SAMPLING TECHNIQUE It is a series of question asked to individuals to obtain statistically useful information about the given topic. Respondent gives answer according to their will. I used questionnaire as sampling technique. The questionnaire prepared for all the customers of the SBI and ICICI bank to know their satisfaction level. LIMITATION OF THE STUDY As the Ghaziabad in survey, so the coverage area is small according to the project need. Size of the research may not be substantial Information may be biased because of the preference of the customers Complete data was not available due to company privacy and secrecy The survey was carried through questionnaire and the questions were based on perception

There was lack of time on the part of respondents The banking sector is too vast and it is not possible to cover each and every customer

The study is limited to a particular branch of SBI and ICCI bank

68

DATA ANALYSIS AND INTERPRETATION Q1. ACCOUNT ON WHICH BANK NAME OF BANK STATE BANK OF INDIA ICICI BANK 50 50% FREQUENCY 50 PERCENTAGE 50%

50 45 40 35 ACCOUNTS 30 25 20 15 10 5 0 FREQUENCY PERCENTAGE ICICI BANK 50 50 SBI 50 50

INTERPRETATION- From the above table 50% having ICICI bank and 50% having in SBI

69

Q2. AGE OF THE RESPONDENTS

ICICI BANK 25Years 35Years 36Years 45 Years 46 Years- 55 Years ABOVE 55 Years TOTAL

STATE BANK OF INDIA

30 10 7 3 50

10 12 23 5 50

50 45 40 35 30 AGE 25 20 15 10 5 0 ICICI BANK SBI BANK 25YRS-35 YRS 30 10 36 YRS -45 YRS 10 12 46 YRS-55 YRS 7 23 ABOVE 55YRS 3 5 TOTAL 50 50

INTERPRETATIONAbove table shows in case of SBI maximum customers are of age group between 46-55 years i.e 46% where in case of ICICI bank maximum are age of 25-35 Years.
70

Q3. RESON TO CHOOSE THE BANKS SBI SERVICE Efficient customer service Time Saving Transaction 11 Cost Technology 7 ATMs 2 9 4 12 5 18 8 4 31 17 8 9 5 20 8 7 4 RANK 1 10 RANK 2 12 RANK 3 14 RANK 4 8 RANK 5 6

SBI BANK
35 30 25 Axis Title 20 15 10 5 0 RANK 1 RANK 2 RANK 3 Axis Title RANK 4 RANK 5 ATMs TRANSACTION COSTS TECHNOLOGY EFFICIENCY CUSTOMERS SERVICE TIME SAVING

71

INTERPRETATION Above the table shows that maximum respondent give rank to time saving whereas respondent gives lowest rank to ATMs ANALYSIS Applying weighted average method. SERVICES RA NK 1 RAN K2 RA NK 3 RA NK 4 RA NK 5 CALCULA TION WEIGHT ED AVERG AGE EFFICIENT CUSTOME R SERVICE TIME SAVING TRANSACT 11 ION COST TECHNOL OGY ATMS 2 4 5 8 31 212 4.24 1 7 9 12 18 4 153 3.06 2 17 8 9 5 130 2.60 4 20 8 11 7 4 117 2.34 5 10 12 14 8 6 138 2.76 3 R 1

ABOVE CALCULATION SHOWS THE HIGHEST WEIGHTED AVERAGE IS OF ATMS

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ICICI BANKS SERVICES EFFICIENT CUSTOMER SERVICE TIME SAVING 5 12 9 8 17 11 8 14 12 RANK 1 2 RANK 2 7 RANK 3 11 RANK 4 20 RANK 5 10

TRANSACTION 4 COST TECHNOLOGY ATMS 8 31

18 4

9 5

7 4

8 6

ICICI
35 30 25 20 15 TECHNOLOGY 10 5 0 RANK 1 RANK 2 RANK 3 RANK 4 RANK 5 ATMs EFFICIENCY CUSTOMERS SERVICE TIME SAVING TRANSACTION COSTS

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INTERPRETATION Above table shows that maximum customer gives rank 1 to ATM whereas maximum customer gives lowest rank of ICICI bank service. Analysis Applying weighted average method SERVICES RAN K1 RAN K2 RAN K3 RAN K4 RAN K5 CALCULA TION WEIGH TED AVERA GE EFFICIENT 2 CUSTOME R SERVICE TIME SAVING TRANSAC TION COST TECHNOL OGY ATMS 31 4 5 4 6 100 2 5 8 18 9 7 8 139 2.78 4 4 9 17 8 12 185 3.7 1 5 12 8 11 14 167 3.34 3 7 11 20 10 179 3.58 2 R 2

Above calculation shows that transaction cost is rank1 for ICCI customer where as ATM are on the last rank.

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APPLYING RANK CORRELATION METHOD OVER THESE TWO BANKS WEIGHTED AVERAGE R1 3 5 4 2 1 TOTAL 1-6{D^2/N3-N =1 6 X 34/ (5)^ 3 5 = 1 204/125-5 = -1.06 So there are negative relationship between two banks. R2 2 3 1 4 5 D= R1 R2 1 2 3 -2 -4 D^2 1 4 9 4 16 34

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Q4. TYPES OF ACCOUNTS IN THE BANKS SBI FIXED ACCOUNT SAVING ACCOUNT CURRENT ACCOUNT OTHER TOTAL 16(32%) 15(30%) 11(22%) 8(16%) 50 ICICI BANK 11(22%) 19(38%) 12(24%) 8(16%) 50

Chart Title
50 45 40 35 30 25 20 15 10 5 0 FIXED ACCOUNT SAVING ACCOUNT CURRENT ACCOUNT SBI BANK OTHERS TOTAL

ICICI BANK

INTERPRETATION Above table show that 32% and 22% customers having fixed account in SBI and ICICI respectively where as only 16% customers having other accounts in both banks.

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Q5. TYPES OF SERVICE PREFFER THE MOST (For sbi and icici bank) SBI ATM SERVICE INTERNET BANKING MOBILE BANKING CORE BANKING TOTAL 22(44%) 5(10%) 6(12%) 17(34%) 50 ICICI 18(36%) 11(22%) 12(24%) 9(18%) 50

TYPES OF SERVICES IN THE BANK

50 45 40 35 30 25 20 15 10 5 0

ATM SERVICES 22 18

INTERNET BANKING 5 11

MOBILE BANKING 6 12

SBI ICICI

CORE BANKING SYSTEM 17 9

TOTAL

50 50

INTERPRETATION Above table shows that 44% customer prefer that ATM services of SBI where as 6% prefer to mobile banking and in ICICI bank 36% gives preference to ATM services and 24% to mobile banking.

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Q6. SATISFACTION LEVEL SBI YES QUITE SATISFACTION NO 34 14 2 ICICI BANK 26 21 3

SATISFICATION LEVEL
35 30 25 20 15 10 5 0 SBI ICICI YES 34 26 QUITE SATISFY 14 21 NO 2 3

INTERPRETATION Out of 50 only 34 respondent are fully satisfied with SBI and 26 with ICICI bank.

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Q7. AWARENESS ABOUT PRODUCT AND SERVICES YES SBI ICICI BANK 39(78)% 34(68)% NO 11(22)% 16(32)%

AWARNESS ABOUT THE PRODUCT AND SERVICES

40 35 30 25 20 15 10 5 0 YES NO

SBI BANK 39 11

ICICI BANK 34 16

INTERPRETATION Above table shows that maximum customers aware about their banks products and services

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Q8. SATISFACTORY LEVEL OF LOAN AND ADVANCES SBI HIGHLY SATISFIED SATISFIED AVERAGE DISSATISFIED HIGHLY DISSATISFIED 20(40)% 15(30% 06(12)% 04(8)% 5(10)% ICICI BANK 6(12)% 17(34)% 15(30)% 7(14)% 5(10)%

SATISFICATION LEVEL
20 18 16 14 12 10 8 6 4 2 0 SBI ICICI

HIGHLY SATISFIED 20 6

SATISFIED 15 17

AVERAGE 6 15

DISSATISFIED 4 7

HIGHLY DISSATISFIED 5 5

INTERPRETAION Above table shows that maximum i.e 40% customer are highly satisfied with the product of SBI where as in case ICICI maximum customer i.e 34% are only satisfied with its product ANALYSIS Applying Weighted Average Method
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SCALE HIGHLY SATISFIED SATISFIED AVERAGE

W 5

W1 20

WX1 100

X2 6

WX2 30

4 3

15 6 4 5

69 18 8 5

17 15 7 5

68 45 28 5

DISSATISFIED 2 HIGHLY SISSATISFIED TOTAL 15 1

191

176

WEIGHTED AVERAGE SBI= WX1/W = 191/15 =12.73 ICICI BANK= WX2/W = 176/15 = 11.73

So SBI is more preferable than ICICI bank.

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Q9. PREFRENCE OF LOAN AND ADVANCES SCHEMES OF SBI OVER ICICI PREFRENCE SBI ICICI BANK 26 28 NO PREFRENCE 24 22

PREFERENCE OF LOANS AND SERVICES OF SBI OVER ICICI

30 25 20 15 10 5 0 PREFERENCE NO PREFERENCE SBI BANK 26 24 ICICI BANK 28 22

INTERPRETATION- Maximum customer is prefer to take loan from their own bank. ANALYSIS To know the preference of SBI and ICICI banks loan and advances I am applying chi square test PREFRENCE SBI ICICI BANK TOTAL 26 28 54 NO PREFRENCE 24 22 46 TOTAL 50 50 100

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Observed value V 26 24 28 22 Total

Expected values E 27 23 27 23

O-E

(O-E)^2

(O-E)^2/E

1 1 2 1

1 1 4 1

0.037 0.043 0.148 0.271 0.271

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

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Q10. FEATURES YOU LIKE MOST IN TODAYS BANKING SCENARIO SBI LESS PAPER WORK ATTRACTIVE INTERSEST RATE TRANSPARENCY SIMPLE AND FAST PROCESSING FLEXIBILITY TO CHOOSE ON EMI BASE LOAN OR AN OVERDRAFT LONGER TENURE LOAN FOR EASE OF REPAYMENT SPECIALLY DESIGN PRODUCTS FOR SELF EMPLOYES 2 1 6 2 11 17 6 2 9 3 18 5 ICICI BANK 12 6

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FEATURES
SBI BANK 18 12 9 5 6 6 2 3 11 6 2 2 1 ICICI BNAK 17

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Q11. SATISFY WITH PRESENT BANKING SYSTEM RESPONDENT HIGHLY SATISFIED SATISFIED AVERAGE DISSATISFIED HIGHLY DISSATISFIED 20 45 18 10 7

RESPONDENTS
45 40 35 30 25 20 15 10 5 0

HIGHLY SATISFIED 20

SATISFIED

AVERAGE

SDISSATISFI ED 10

RESPONDENTS

45

18

HIGHLY DISSATISFI ED 7

INTERPRETATIONABOVE DATA SHOWS THAT MINIMUM OF CUSTOMER I.E 45% ARE SATISFIED WITH THE PRESENT BANKING SYSYTEM

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FINDINGS Most of the respondent choose SBI because the banking is giving more loan and advances facility to the customers The age group of 25years 35 years respondents mostly have accounts in ICCI bank where as maximum old age respondents having account in SBI. According to my knowledge and perception maximum old age customers found SBI more reliable bank as a public sector bank where as mostly youngster have interest in ICICI bank Customer awareness program is required so that more and people should attract towards loans and advances Minimum customer are satisfied with todays banking scenario Maximum customer like the most in banking service i.e less paper work whereas they like the EMI base loan scheme Even in the case of loan and advances customers not only give preference to SBI but they are also satisfy with it In ICICI bank maximum customer having saving account where as SBI maximum customer have fixed account, reason among this s that maximum customer rely over SBI for their long term money deposit Maximum customer are satisfied with their more number of ATMs facilities of SBI whereas ICICI customers like it low transaction cost 36% of SBI customer well known about it loans and awareness products where as in, ICICI bank 16 % customers dont know about the loan and advances product of it.

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RECOMMNDATION Since many of the respondent are not aware of their product and services the bank has to take some initiative The bank can post a list of services that they are rendered to the customers inside the bank premises. And they can post demo of all these services in their bank website. SBI should concentrate more on the respondent are failing under age group 25- 35 years ICICI bank should concentrate more over the people are failing under the age group of 44-55 years ICICI needs to increase its lending money to attract people towards its loan and advances products

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CONCLUSION We can conclude that the financial sector is a nervous system of Indian economy. For steady growth in economy innovations and development in financial sector is very important. The bank should focus on Launch Innovative product Customized advance product Better customer services Fastest customers problem solving techniques Customer retention Since both the banks are competing equally with each other But SBI bank is little bit below the line in young customer handling when compared to ICICI bank. The ICICI bank is little bit below the line concentrating on loan advances products and services then to SBI. But SBI should be considering more reliable because of public sector bank and because of its various schemes.

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BIBLIOGRAPHY REFRENCES BOOKS:

G.R Foxall, critical perspectives on business and managemen.. Consumer Behavior Analysis, Routeldge Publishers.

1.

W. John, Kahn V. James, 2005, Research in Education, IX edition,

Prentice Hall of India Pvt. Ltd.

Marketing Management, 12th edition, Philip Kotler, Kevin Lane Kotler, Published by Prentice Hall, USA WEBSITES 1. WWW.rbi.com 2. www.statebankofindia.com 3. www.icicibank.com 4. www.moneycontrol.com

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ANNEXURE-1 QUESTIONNAIRE 1. NAME: _________________________________________________________ 2. AGE: ___________ (a) 25-35Years (B) 36-45Years (c) 46-55Years (d) Above 55Years 3. GENDER: (a) Male (b) Female 4. EDUCATION QUALIFICATION: (a) Illiterate (b) School (c) UG (d) PG (e) Professional course (f) Other________________________
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5. OCCUPATION: (a) House wife (b) Student (c) Salaried person (d) Business man (e) Professionals (f) Supervisor (g) Managerial (h)Prisoner 6. In which bank do you have an account? (a) ICICI Bank (b)State Bank of India (c) Other______________________________________ 7. Why you choose a particular bank? (a) Efficient customer Service (b) More ATMs (c) Time Saving
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(d) Transaction costs (e) Technology 8. What type of account do you have in bank? (a) Saving (b) Fixed (c) Current (d) others _______________________ 9. Which type of services you prefer the most in bank? (a) ATM service (b) Internet Banking (c) Mobile Banking (d) Core banking 10. Are you satisfied? (a) Yes (b) Quite satisfy (c) No

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11. What do you feel by services provided by SBI and ICICI bank in afvance product? (a) Highly Satisfied (b) Satisfied (c) Average (d) Dissatisfied (e) Highly dissatisfied 12. Are you taking Loan from the bank? (a) Yes (b) No 13. What features do you like most in todays banking scenario regarding loan? (a) Less paper work (b) Transparency (c) Less interest rates (d) Longer tenure Loan for ease of payment (e) Flexibility to choose EMI base loan or an overdraft (f) Specially design product for self employed

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14. Are you Satisfied with today banking system? (a) Yes (b) No

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