COMPARATIVE STUDY BETWEEN TWO BANKS

Abstract International Banking system has got a tremendous consumer pull since globalization. Indian banks the dominant financial intermediaries in India have made good progress over the last five years. There is a close competition among the market players companies are continuously involved in developing strategies to tempt a consumer. This study tries to find out the impact of Different policies of bank and conducted a survey on the Indian Banking Industry to assess the competitive advantage offered by the banking sector, as well as the policies and structures required to further stimulate the pace of growth.

Introduction A bank is a financial institution that provides banking and other financial services to theircustomers. A bank is generally understood as an institution which provides fundamentalbanking services such as accepting deposits and providing loans. There are also nonbankinginstitutions that provide certain banking services without meeting the legaldefinition of a bank. Banks are a subset of the financial services industry. A banking system also referred as a system provided by the bank which offers cashmanagement services for customers, reporting the transactions of their accounts andportfolios, throughout the day. The banking system in India, should not only be hasslefree but it should be able to meet the new challenges posed by the technology and anyother external and internal factors. For the past three decades, Indias banking system hasseveral outstanding achievements to its credit. The Banks are the main participants of thefinancial system in India. The Banking sector offers several facilities and opportunities totheir customers. All the banks safeguards the money and valuables and provide loans,credit, and payment services, such as checking accounts, money orders, and cashierscheques. The banks also offer investment and insurance products. As a variety of modelsfor cooperation and integration among finance industries have emerged, some of thetraditional distinctions between banks, insurance companies, and securities firms havediminished. In spite of these changes, banks continue to maintain and perform theirprimary roleaccepting deposits and lending funds from these deposits. Before the establishment of banks, the financial activities were handled by money lenders and individuals. At that time the interest rates were very high. Again there were no security of public savings and no uniformity regarding loans. So as to overcome such problems the organized banking sector was established, which was fully regulated by the government. The organized banking sector works within the financial system to provide loans, accept deposits and provide other services to their customers. The following functions of the bank explain the need of the bank and its importance: To provide the security to the savings of customers. To control the supply of money and credit

 To encourage public confidence in the working of the financial system, increase savings speedily and efficiently. To avoid focus of financial powers in the hands of a few individuals andinstitutions. To set equal norms and conditions (i.e. rate of interest, period of lending etc) to alltypes of customers

History of Indian Banking Banking in India has its origin as early as the Vedic period. It is believed that the transition from money lending to banking must have occurred even before Manu, the great Hindu jurist, who devoted a section of his work to deposits and advances and laid down rules relating to rates of interest. During the Mogul period, the indigenous bankers played a crucial role in lending money and financing foreign trade and commerce. During the days of the East India Company, it was the turn of the agency houses to carry on the banking business. The first bank in India, called The General Bank of India was established in the year 1786. The East India Company established The Bank of Bengal/Calcutta (1809), Bank of Bombay (1840) and Bank of Madras (1843). The next bank was Bank of Hindustan which was established in 1870. These three individual units (Bank of Calcutta, Bank of Bombay, and Bank of Madras) were called as Presidency Banks. Allahabad Bank which was established in 1865, was for the first time completely run by Indians. Punjab National Bank Ltd. was set up in 1894 with head quarters at Lahore. Between 1906 and 1913, Bank of India, Central Bank of India, Bank of Baroda, Canara Bank, Indian Bank, and Bank of Mysore were set up. In 1921, all presidency banks were amalgamated to form the Imperial Bank of India which was run by European Shareholders. After that the Reserve Bank of India was established in April 1935. At the time of first phase the growth of banking sector was very slow. Between 1913 and 1948 there were approximately 1100 small banks in India. To streamline the functioning and activities of commercial banks, the Government of India came up with the Banking Companies Act, 1949 which was later changed to Banking Regulation Act 1949 as per amending Act of 1965 (Act No.23 of 1965). Reserve Bank of India was vested with extensive powers for the supervision of banking in India as a Central Banking Authority. After independence,

Government has taken most important steps in regard of Indian Banking Sector reforms. In 1955, the Imperial Bank of India was nationalized and was given the name "State Bank of India", to act as the principal agent of RBI and to handle banking transactions all over the country. It was established under State Bank of India Act, 1955. Seven banks forming subsidiary of State Bank of India was nationalized in 1960. On 19th July, 1969, major process of nationalization was carried out. At the same time 14 major Indian commercial banks of the country were nationalized. In 1980, another six banks were nationalized, and thus raising the number of nationalized banks to Seven more banks were nationalized with deposits over 200 Crores. Till the year 1980 approximately 80% of the banking segment in India was under governments ownership. On the suggestions of Narsimhan Committee, the Banking Regulation Act was amended in 1993 and thus the gates for the new private sector banks were opened. The following are the major steps taken by the Government of India to Regulate Banking institutions in the country:-

1949 : Enactment of Banking Regulation Act. 1955 :Nationalisation of State Bank of India. 1959 : Nationalization of SBI subsidiaries. 1961 : Insurance cover extended to deposits. 1969 :Nationalisation of 14 major Banks. 1971 : Creation of credit guarantee corporation. 1975 : Creation of regional rural banks. 1980 :Nationalisation of seven banks with deposits over 200 Crores.

RESERVE BANK OF INDIA The reserve bank of India is a central bank and was established in April 1, 1935 in accordance with the provisions of reserve bank of India act 1934. The central office ofRBI is located atMumbai since inception. Though originally the reserve bank of Indiawas privately owned, since nationalization in 1949, RBI is fully owned by theGovernment of India. It was inaugurated

with share capital of Rs. 5 Crores divided intoshares of Rs. 100 each fully paid up.RBI is governed by a central board (headed by a governor) appointed by the centralgovernment of India. RBI has 22 regional offices across India. The reserve bank of Indiawas nationalized in the year 1949. The general superintendence and direction of the bankis entrusted to central board of directors of 20 members, the Governor and four deputyGovernors, one Governmental official from the ministry of Finance, ten nominateddirectors by the government to give representation toimportant elements in the economiclife of the country, and the four nominated director by the Central Government torepresent the four local boards with the headquarters at Mumbai, Kolkata, Chennai andNew Delhi. Local Board consists of five members each central government appointed fora term of four years to represent territorial and economic interests and the interests of cooperativeand indigenous banks. The RBI Act 1934 was commenced on April 1, 1935. The Act, 1934 provides thestatutory basis of the functioning of the bank. The bank was constituted for the need offollowing:

To regulate the issues of banknotes. To maintain reserves with a view to securing monetary stability To operate the credit and currency system of the country to its advantage.

INDIAN BANKING SECTOR

Indian economy opened its doors to MNCs, the Indian banking sector has been witnessing bizarre changes in terms of new products and services and stiff competition as well. The sorts of IPOs that have been taking place in banking sector are amazing .As at end-March 2002, there were 296 Commercial banks operating in India. This included 27 Public Sector Banks (PSBs), 31 Private, 42 Foreign and 196 Regional Rural Banks. Also, there were 67 scheduled co-operative banks consisting of 51 scheduled urban co-operative banks and 16 scheduled state co-operative banks. The average capital adequacy ratio for the scheduled commercial banks, which was around two per cent in 1997, had increased to 13.08 per cent as on March 31, 2008. The improvement in the capital adequacy ratio has come about despite significant growth in the aggregate asset of the banking system. In regard to the asset quality also, the gross NPAs of the scheduled commercial banks, which were as high as 15.7 per cent at end-March 1997, declined

significantly to 2.4 per cent as at end-March 2008. The reform measures have also resulted in an improvement in the profitability of banks. The Return on Assets (RoA) of scheduled commercial banks increased from 0.4 per cent in the year 1991-92 to 0.99 percent in 2007-08. The banking system in India is significantly differentfrom that of other Asian nations because of thecountrys unique geographic, social, and economiccharacteristics.The Indian financial sector (including banks, non-banking financial companies, or NBFCs, and housingfinance companies, or HFCs) reported a compounded annual growth rate (CAGR) of 19% over thelast three years and their creditportfolio stood at close to Rs. 49trillion (around 62% of 2010-11 GDP)as on March 31, 2011.Banksaccounted for nearly 86% of the totalcredit, NBFCs for around 10%, andHFCs for around 4%. Within banks,public sector banks(PSBs), on thestrength of their country-widepresence, continued to be the leader,accounting for around 76% of thetotal credit portfolio, while within theNBFC sector, large infrastructurefinancing institutions2 accounted formore than half the total NBFC credit portfolio; NBFCs that are into retail financing took up the rest. The growth in the Indian Banking Industry has been more qualitative than quantitative and it is expected to remain the same in the coming years. Based on the projections made in the "India Vision 2020" prepared by the Planning Commission and the Draft 10th Plan, the report forecasts that the pace of expansion in the balance-sheets of banks is likely to decelerate. The total assets of all scheduled commercial banks by end-March 2010 are estimated at Rs 40, 90,000 crores. That will comprise about 65 per cent of GDP at current market prices as compared to 67 per cent in 2002-03. Bank assets are expected to grow at an annual composite rate of 13.4 per cent during the rest of the decade as against the growth rate of 16.7 per cent that existed between 1994-95 and 2002-03. It is expected that there will be large additions to the capital base and reserves on the liability side. The Indian Banking Industry can be categorized into non-scheduled banks and scheduled banks. Scheduled banks constitute of commercial banks and co-operative banks. There are about 67,000 branches of Scheduled banks spread across India. As far as the present scenario is concerned the Banking Industry in India is going through a transitional phase.

The Public Sector Banks (PSBs), which are the base of the Banking sector in India account for more than 78 per cent of the total banking industry assets. Unfortunately they are burdened with excessive Non Performing assets (NPAs), massive manpower and lack of modern technology. On the other hand the Private Sector Banks are making tremendous progress. They are leaders in Internet banking, mobile banking, phone banking, ATMs. As far as foreign banks are concerned they are likely to succeed in the Indian Banking Industry.

Introduction of State Bank of India The evolution of State Bank of India can be traced back to the first decade of the 19th century. It began with the establishment of the Bank of Calcutta in Calcutta, on 2 June 1806. The bank was redesigned as the Bank of Bengal, three years later, on 2 January 1809. It was the first ever joint-stock bank of the British India, established under the sponsorship of the Government of Bengal. Subsequently, the Bank of Bombay (established on 15 April 1840) and the Bank of Madras (established on 1 July 1843) followed the Bank of Bengal. These three banks dominated the modern banking scenario in India, until when they were amalgamated to form the Imperial Bank of India, on 27 January 1921. An important turning point in the history of State Bank of India is the launch of the first Five Year Plan of independent India, in 1951. The Plan aimed at serving the Indian economy in general and the rural sector of the country, in particular. Until the Plan, the commercial banks of the country, including the Imperial Bank of India, confined their services to the urban sector. Moreover, they were not equipped to respond to the growing needs of the economic revival taking shape in the rural areas of the country. Therefore, in order to serve the economy as a whole and rural sector in particular, the All India Rural Credit Survey Committee recommended the formation of a state-partnered and state-sponsored bank.
The All India Rural Credit Survey Committee proposed the take over of the Imperial Bank of India, and integrating with it, the former state-owned or state-associate banks. Subsequently, an Act was passed in the Parliament of India in May 1955. As a result, the State Bank of India (SBI) was established on 1 July 1955. This resulted in making the State Bank of India more powerful, because as much as a quarter of the resources of the Indian banking system were controlled directly by the State.

Later on, the State Bank of India (Subsidiary Banks) Act was passed in 1959. The Act enabled the State Bank of India to make the eight former State-associated banks as its subsidiaries. The State Bank of India emerged as a pacesetter, with its operations carried out by the 480 offices comprising branches, sub offices and three Local Head Offices, inherited from the Imperial Bank. Instead of serving as mere repositories of the community's savings and lending to creditworthy parties, the State Bank of India catered to the needs of the customers, by banking purposefully. The bank served the heterogeneous financial needs of the planned economic development.

Branches The corporate center of SBI is located in Mumbai. In order to cater to different functions, there are several other establishments in and outside Mumbai, apart from the corporate center. The bank boasts of having as many as 14 local head offices and 57 Zonal Offices, located at major cities throughout India. It is recorded that SBI has about 10000 branches, well networked to cater to its customers throughout India.

ATM Services SBI provides easy access to money to its customers through more than 8500 ATMs in India. The Bank also facilitates the free transaction of money at the ATMs of State Bank Group, which includes the ATMs of State Bank of India as well as the Associate Banks State Bank of Bikaner & Jaipur, State Bank of Hyderabad, State Bank of Indore, etc. You may also transact money through SBI Commercial and International Bank Ltd by using the State Bank ATM-cum-Debit (Cash Plus) card.

Subsidiaries The State Bank Group includes a network of eight banking subsidiaries and several non-banking subsidiaries. Through the establishments, it offers various services including merchant banking services, fund management, factoring services, primary dealership in government securities, credit cards and insurance.

The eight banking subsidiaries are:

State Bank of Bikaner and Jaipur (SBBJ) State Bank of Hyderabad (SBH) State Bank of India (SBI) State Bank of Indore (SBIR) State Bank of Mysore (SBM) State Bank of Patiala (SBP) State Bank of Saurashtra (SBS) State Bank of Travancore (SBT)

Personal Banking

SBI Term Deposits SBI Loan For Pensioners SBI Recurring Deposits Loan Against Mortgage Of Property SBI Housing Loan Loan Against Shares & Debentures SBI Car Loan Rent Plus Scheme SBI Educational Loan Medi-Plus Scheme

Other Services

Agriculture/Rural Banking NRI Services ATM Services Demat Services Corporate Banking Internet Banking Mobile Banking International Banking Safe Deposit Locker RBIEFT E-Pay E-Rail SBI Vishwa Yatra Foreign Travel Card Broking Services Gift Cheques

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Balance Sheet of State Bank of India

Balance Sheet of SBI Mar '12 12 moths Capital and Liabilities: Total Share Capital Equity Share Capital Share Application Money Preference Share Capital Reserves Revaluation Reserves Net Worth Deposits Borrowings Total Debt Other Liabilities & Provisions Total Liabilities 671.04 671.04 0 0 83,280.16 0 83,951.20 1,043,647.36 127,005.57 1,170,652.93 80,915.09 1,335,519.22 Mar '12 12 moths Assets Cash & Balances with RBI Balance with Banks, Money at Call Advances Investments Gross Block Accumulated Depreciation Net Block Capital Work In Progress Other Assets Total Assets Contingent Liabilities Bills for collection Book Value (Rs) 54,075.94 43,087.23 867,578.89 312,197.61 14,792.33 9,658.46 5,133.87 332.68 53,113.02 1,335,519.24 698,064.74 201,500.44 1,251.05 94,395.50 28,478.65 756,719.45 295,600.57 13,189.28 8,757.33 4,431.95 332.23 43,777.85 1,223,736.20 585,294.50 205,092.29 1,023.40 61,290.87 34,892.98 631,914.15 285,790.07 11,831.63 7,713.90 4,117.73 295.18 35,112.76 1,053,413.74 429,917.37 166,449.04 1,038.76 55,546.17 48,857.63 542,503.20 275,953.96 10,403.06 6,828.65 3,574.41 263.44 37,733.27 964,432.08 614,603.47 152,964.06 912.73 51,534.62 15,931.72 416,768.20 189,501.27 8,988.35 5,849.13 3,139.22 234.26 44,417.03 721,526.32 736,087.59 93,652.89 776.48 635 635 0 0 64,351.04 0 64,986.04 933,932.81 119,568.96 1,053,501.77 105,248.39 1,223,736.20 Mar '11 12 moths 634.88 634.88 0 0 65,314.32 0 65,949.20 804,116.23 103,011.60 907,127.83 80,336.70 1,053,413.73 Mar '10 12 moths 634.88 634.88 0 0 57,312.82 0 57,947.70 742,073.13 53,713.68 795,786.81 110,697.57 964,432.08 Mar '09 12 moths 631.47 631.47 0 0 48,401.19 0 49,032.66 537,403.94 51,727.41 589,131.35 83,362.30 721,526.31 Mar '08 12 moths ------------------- in Rs. Cr. ------------------Mar '11 12 moths Mar '10 12 moths Mar '09 12 moths Mar '08 12 moths

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Introduction of ICICI 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 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

12

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 is India's second-largest bank. The Bank has a network of about 1,308 branches and 3,950 ATMs in India and presence in 18 countries. 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 and affiliates 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 Unites 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). There subsidiaries are: National ICICI Lombard ICICI Prudential Life Insurance Company Ltd ICICI Securities Limited ICICI Prudential Asset Management Company Limited ICICI Venture ICICI direct.com ICICI Foundation International ICICI Bank UK PLC ICICI Bank Canada ICICI Bank Eurasia LLC

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Personal Banking

Savings & Deposits Loans Cards Wealth management

Corporate Banking

Transaction Banking Treasury Banking Investment Banking Capital Markets Custodial Services Rural & Agri Banking Structured Finance Technology Finance

Business Banking

Current Account Business Loans Trade Cash Management Services

NRI Banking

Money Transfer Bank Accounts Investment Property Solutions Insurance Loans

Life Insurance

Life Insurance Retirement Solutions Health Solutions Education Solutions

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General Insurance

Health Insurance Overseas Travel Insurance Student Medical Insurance Motor Insurance Home Insurance

Securities

Corporate Finance Primary Dealership Institutional Equities Retail Equities

Mutual Fund

Our Funds Performance Analyzer Systematic Investing Compare Schemes

15

Balance Sheet of ICICI Bank

Balance Sheet of ICICI Bank Mar '12 12 moths Capital and Liabilities: Total Share Capital Equity Share Capital Share Application Money Preference Share Capital Reserves Revaluation Reserves Net Worth Deposits Borrowings Total Debt Other Liabilities & Provisions Total Liabilities 1,152.77 1,152.77 2.39 0 59,250.09 0 60,405.25 255,499.96 140,164.91 395,664.87 17,576.98 473,647.10 Mar '12 12 moths Assets Cash & Balances with RBI Balance with Banks, Money at Call Advances Investments Gross Block Accumulated Depreciation Net Block Capital Work In Progress Other Assets Total Assets Contingent Liabilities Bills for collection Book Value (Rs) 20,461.29 15,768.02 253,727.66 159,560.04 9,424.39 4,809.70 4,614.69 0 19,515.39 473,647.09 858,566.64 64,457.72 524.01 20,906.97 13,183.11 216,365.90 134,685.96 9,107.47 4,363.21 4,744.26 0 16,347.47 406,233.67 883,774.77 47,864.06 478.31 27,514.29 11,359.40 181,205.60 120,892.80 7,114.12 3,901.43 3,212.69 0 19,214.93 363,399.71 694,948.84 38,597.36 463.01 17,536.33 12,430.23 218,310.85 103,058.31 7,443.71 3,642.09 3,801.62 0 24,163.62 379,300.96 803,991.92 36,678.71 444.94 29,377.53 8,663.60 225,616.08 111,454.34 7,036.00 2,927.11 4,108.89 0 20,574.63 399,795.07 371,737.36 29,377.55 417.64 1,151.82 1,151.82 0.29 0 53,938.82 0 55,090.93 225,602.11 109,554.28 335,156.39 15,986.35 406,233.67 Mar '11 12 moths 1,114.89 1,114.89 0 0 50,503.48 0 51,618.37 202,016.60 94,263.57 296,280.17 15,501.18 363,399.72 Mar '10 12 moths 1,463.29 1,113.29 0 350 48,419.73 0 49,883.02 218,347.82 67,323.69 285,671.51 43,746.43 379,300.96 Mar '09 12 moths 1,462.68 1,112.68 0 350 45,357.53 0 46,820.21 244,431.05 65,648.43 310,079.48 42,895.39 399,795.08 Mar '08 12 moths Mar '11 12 moths in Rs. Cr. Mar '10 12 moths Mar '09 12 moths Mar '08 12 moths

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LITERATURE REVIEW

Literature review is a study involving a collection of literatures in the selected area of research in which the researcher has limited experience, and critical examination and comparison of them to have better understanding. It also helps the researchers to update with the past data, data sources and results and identify the gap for further research, if any. Thus, the reviews in the present study consist of the ones discussed below, and they reveal there are very scant studies in India emphasizing fundamental analysis of the banking sector. Mark P Bauman (1996) conducted a study, namely, "A Review of Fundamental Analysis Research in Accounting". This paper has outlined the development of a fundamental valuation model and reviewed related empirical work. First, an accounting-based expression for firm's equity value has been developed into a rich theoretical framework. The study verified its descriptive validity regarding the mapping of accounting numbers into stock prices. This paper identified three major issues associated with practical implementation of the model: the prediction of future profitability, the length of appropriate forecast horizon, and the determination of the appropriate discount rate. Ruchi trehan and Niti soni (2003) attempts to analyze the operating efficiency and its relationship with profitability, in the public sector banking industry in India. The analysis of the relationship between the group status and technical efficiency shows that 1) the banks affiliated to the SBI group are more efficient than nationalized banks and 2) the difference in the efficiency levels of these two groups is statistically significant. Nalini Prava Tripathi(2006) attempts to analyze the factors that are essential in influencing the investment decision of the customers of the public sector banks. For thi 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 variables that link together the seemingly unrelated variables and provides insight into the underlying structure of the data. Secondly, this study also suggests some measures to formulate marketing strategies to lure customers towards banks.

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OBJECTIVE

The objective of the study is to do comparative analysis of SBI and ICICI Bank. To compare the financial performance of SBI and ICICI Bank. To compare the customer satisfaction for SBI and ICICI Bank.

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Research Methodology Research in common parlance refers to a search for knowledge. Once can also define research as a scientific and systematic search for pertinent information on a specific topic. In fact, Research is an art of scientific investigation. The Advance learner Dictionary of current English lays down the meaning of research as A careful investigation or inquiry especially through search for new facts in any branch of knowledge Redman and Mory define research as A systematic effort to gain new knowledge. According to Cliffort and Woody Research comprises defining and redefining problems, formulating hypothesis or suggested solution, collecting, organizing and evaluating data , making deductions and reaching conclusions and testing conclusions whether they fit the formulating hypothesis. Research Designing A research design is master plan or modal for conduct formal investigation. Once the formal investigation is decided, the researcher must formulate the formal plan of investigation. A research design is the specification of method and procedure for acquiring the information needed for solving the problem. the information needed for solving the problem. The information needed for solving the problem. The formal investigation plan will concentrate on the three selection source of method and procedures for gathering the data. Data gathering forms are prepared. There are three basic type of research: Exploratory Descriptive Casual

Exploratory: Designed to generate basic knowledge, clarify relevant issues, uncover variables associated with a problem, uncover information needs, and/or define alternatives for addressing research objectives.

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Type of Exploratory studies Literature Search Analysis of Selected Cases Experience Surveys

Descriptive: The Descriptive study Designed to provide further insight into the research problem by describing the variables of interest. It can be used for profiling, defining, segmentation, estimating, predicting, and examining associative relationships. Type of Descriptive studies Cross-Sectional Study Longitudinal Study

Causal: This type of research Designed to provide information on potential cause-and-effect relationships. Most practical in marketing to talk about associations or impact of one variable on another.

Research Plan Research Design Research method Used Research Technique Used Data Collection (Location) Sampling Plan Sample Size Survey Questionnaire Durg,Bhilai,Rajnandgaon Simple Random 100

Data is collected from primary and secondary sources Collection of the data is of primary importance the research process. Data which is collected for the purpose of research helps in proper analysis which is helpful to conduct research effectively. The data source, which is very important in the collection of data, is primary data and secondary data. Both primary and secondary data are taken into consideration for the study of training need analysis.

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Primary data PRIMARY DATA is data that has not been previously published, i.e. the data is derived from a new or original research study and collected at the source, e.g., in marketing, it is information that is obtained directly from first-hand sources by means of surveys, observation or experimentation. Secondary data Secondary data is data collected by someone other than the user. Common sources of secondary data for social science include censuses, organizational records and data collected through qualitative methodologies or qualitative research. Primary data, by contrast, are collected by the investigator conducting the research.

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Data Analysis
SWOT analysis between SBI and ICICI Bank

SBI Bank

ICICI Bank

Strengths It is recorded that SBI has about 10000

Compared to other bank ICICI bank

branches, well networked to cater to its provides long hrs. Of services i.e. 8-8 services to customers throughout India. SBI provides easy access to money to

the customers. ICICI Bank provides online services of all

its customers through more than 8500 ATMs in India. The State Bank Group includes a

its banking facilities. It also provides D-Mart account facilities on-line, so a person can access his account from anywhere he is.
The Bank has a network of about 1,308 branches and 3,950 ATMs in India and presence in 18 countries.

network of eight banking subsidiaries and several non-banking subsidiaries. SBI have more than 18% market share

in Indian banking industry.

Weakness SBI technology adoption process are ICICI bank charges highly to customers for the services provided by them. ICICI bank provides credit facilities but

too late as compared to other bnak.

only up to limited period. Opportunity The bank should also provide insurance services. That means the bank can have a tie-up with a insurance company. The bank will advertise & promote the different policies introduced by the insurance company & convince their customers to buy insurance policies.

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THREATS ICICI Bank is facing tight competition locally as well as internationally. Bank like CITI Bank, HSBC, ABM, Standered Chartered, HDFC also provide equivalent facilities like ICICI do and also ICICI do not have consistency in its international operation. Each branch manager is given the

authority of taking decisions in their respective branches. The decisions made by different managers are diverse and any one wrong decision can laid to heavy losses to the bank.

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Financial performance of SBI and ICICI Bank

SBI BANK
YEAR Total Assets Book value(In Rs) 2008 721,526.32 776.48 2009 964,432.08 912.73 2010 1,053,413.74 1,038.76 2011 1,223,736.20 1,023.40 2012 1,335,519.24 1,251.05

SBI BANK
1,600,000.00 1,400,000.00 1,200,000.00 1,000,000.00 800,000.00 600,000.00 400,000.00 200,000.00 0.00 2007.5

2008

2008.5

2009

2009.5

2010

2010.5

2011

2011.5

2012

2012.5

Total Assets(SBI)

Book value(In Rupee)

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ICICI BANK
YEAR Total Assets(In Cr) Book value(in Rs) 2008 399,795.07 417.64 2009 379,300.96 444.94 2010 363,399.71 463.01 2011 406,233.67 478.31 2012 473,647.09 524.01

ICICI BANK
500,000.00 450,000.00 400,000.00 350,000.00 300,000.00 250,000.00 200,000.00 150,000.00 100,000.00 50,000.00 0.00 2007.5

2008

2008.5

2009

2009.5

2010

2010.5

2011

2011.5

2012

2012.5

Total Assets(In cr)

Book value(in Rs)

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SBI AND ICICI BANK

YEAR Total Assets(SBI) Total Assets(ICICI) 2008 721,526.32 399,795.07 2009 964,432.08 379,300.96 2010 1,053,413.74 363,399.71 2011 1,223,736.20 406,233.67 2012 1,335,519.24 473,647.09

1,400,000.00 1,200,000.00 1,000,000.00 800,000.00 600,000.00 400,000.00 200,000.00 0.00 2008 1,600,000.00 1,400,000.00 1,200,000.00 1,000,000.00 IN (Cr.) 800,000.00 600,000.00 400,000.00 200,000.00 0.00 2007 Total Assets(SBI) Total Assets(ICICI) Linear (Total Assets(SBI)) Linear (Total Assets(ICICI)) 2009 2010 2011 2012 Total Assets(ICICI) Total Assets(SBI)

2008

2009

2010 YEAR

2011

2012

2013

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