Banks are considered as a backbone to the financial system and play an important role in

economic development of a nation. They act as intermediaries in channelizing funds from

surplus units to deficit units to the fully utilization of the funds. An efficient banking system of
nations has significant positive externalities which increase the efficiency of economic
transaction in general.
In the growing global competition, the productivity of any business concern depends
upon the banking system and position on that country. This topic deals with the customer’s
perception towards other Advance Product from State Bank of India & ICICI bank. This project
report is all about analyzing the financial position of SBI and ICICI.

This project report contains 10 different chapters. The report begins with the introduction
to the banks and its summarized details.

The second chapter describes the objectives of the project.

The objectives of this project were to study the financial Performance of SBI and ICICI
Banks and to compare the financial Performance of both banks from 2012-13 to 2016-17.

The third chapter deals with Literature Review in which we give our view on the
Research papers.

The fourth chapter gives us insight information about topic of project carried out along
with Introduction, Meaning, Definition, importance and classifications of State Bank of India &
ICICI bank both.

The Fifth chapter explains the research methods adopted in research activity considering
Research Design and Methodology.

The Sixth chapter gives us the self explanatory of the analysis carried through the project
work with the help of Research papers through tabulation, computation and graphical
representation of data. It enables to find and interpret the actual financial performance of SBI and
ICICI Banks.

The Seventh chapter gives us findings and conclusions that was observed or derived from
the research work. It is very much important after analysis is made.

1
 As we know that only analysis and conclusion is not the end of a research, so in the
eighth chapter the Key Learning part is covered which are made after a depth study of the
analysis. It helps us to overcome the findings during the project work.

The ninth chapter covers the Bibliography in which we gives the information about from
where we find the data like research papers, reference books etc.

The tenth chapter is all about Appendices.

In each of the ten chapters as described above, every chapter has been scheduled in a
manner so as to enable the reader to appreciate the contents easily. The report is supported by
figures and data wherever necessary.

Selection of Topic:-
I selected the topic “Comparative Financial Performance Analysis of Public Sector
Bank and Private Sector Bank with Special Reference to SBI and ICICI bank”
because after some research I found that the Public Sector Bank has more capital than
Private Sector Banks but it cannot get as much profit as Private Sector banks. So to
analyze in which areas PSU is less performing I selected this topic.

2
The objectives of my study are as follows:-

To Analyze the Financial Performance of SBI and ICICI Bank from 2012-13 to 2016-17

To Compare SBI with ICICI bank from 2012-13 to 2016-17

To analyze the Gross Non Performing Assets of SBI and ICICI bank from 2012-13 to
2016-17

3
A. Jaiswal, C. Jain, June(2016)1 has identified that banking Sector plays an important
role in economic development of a country. The study found that overall bank
performance increased considerably in the first two years of the analysis. A significant
change in trend is noticed which resulted in falling profitability, low liquidity and
deteriorating credit quality. It also identified that sound financial health of a bank is the
guarantee not only to its depositors but is equally significant for the shareholder.

Chahat Gupta, Amandeep Kaur, Nov.-20172 have examined that SBI is performing
well and financially sound than ICICI bank but in context of deposits and expenditures,
ICICI bank has better managed than SBI bank. Operating ratio, debt equity ratio were
taken as the variables. It was examine that operating profit ratio of SBI was better than
ICICI bank.

Rakesh Kumar, Dr. Bimal Anjum, June 20173 have selected SBI, ICICI and CITI bank
which are Public, Private, and Foreign banks respectively in India from 2013-14 to 2015-
16 for financial performance analysis with the help of Capital Adequacy Ratio, Net
Profit, Total Income and Total Expenditure. By this, it is realized that the profitability of
the public sector banks appears to have started improving but despite this, the foreign and
private sector banks take a big share. Our public sector banks are still lagging behind
regarding the various financial parameters in comparison with other banks.

4
Ramya S, Narmadha NKB, Lekha S, Nandhitha Bagyam VR and Keerthana A,
(2017)4, have used CAMELS approach for this study and found that the performance of
SBI in the study period has been excellent which is from 2011-12 to 2015-16. However,
SBI needs to improve its position with regards to a few parameters including debt-equity,
operating profit, and non-interest income to total income.

Dr. Mohammad Miyan, Jan-Feb 20175 has tried to analyze the NPA factor and returns
on assets of the PSU banks and private sector for the period of five years i.e., from 2011-
12 to 2015-16. The study has considered various parameters for measuring the
performance like as Gross NPA %, Net NPA %, return % on assets, and growth % of
return on assets. The data of State Bank of India, Punjab National Bank are using for PSU
banks and HDFC Bank, ICICI Bank are using for private banks. It is to conclude that the
results and trends show that NPAs are having a downward trend over the study period,
but Non Performing Assets of public sector banks are still higher than private sector
banks. The returns on the assets have also the downward trends but this is much lower in
PSU banks as compared to private banks.

Dr. Anurag. B. Singh and Priyanka Tandon (2014)6: have examined the financial
performance of SBI bank and ICICI bank, Public sector and Private sector respectively. The data
used for this study was secondary in nature. The study was conducted to determine the financial
performance of SBI and ICICI banks on the basis of ratios such as credit deposit, net profit
margin etc. The study was undertaken from 2009 to 2013. In this study, it was found that SBI is
performing well and financially sound than ICICI bank but in context of deposits and
expenditures, ICICI bank has better managed than SBI bank.

5
 REFERENCES:-

1. International Journal of Scientific Research in Computer Science and Engineering, Vol.4,

Issue.3, pp.1-6, ‘A Comparative Study of Financial Performance of SBI and ICICI Banks
is India’, ISSN- 2320-7639
2. International Journal of Management Studies, Vol.4, Special Issue.3, pp.110-117, ‘ A
Study of Financial Performance: A Comparative Analysis of State Bank of India and
ICICI Bank’, ISSN(Print)- 2249-0302 ISSN(Online)- 2231-2528
3. International Journal For Innovative Research In Multidisciplinary Field, Volume - 3,
Issue 6, pp.30-33, ‘Performance Of Banking Sector In India -A Comparative Study Of
SBI, ICICI & CITI Bank’, ISSN – 2455-0620
4. International Journal of Applied Research,vol.3, Issue.2, pp.449-452, ‘Analysis of
financial performance of state bank of India using camels approach’, ISSN Print: 2394-
7500 ISSN Online: 2394-5869
5. International Journal of Advanced Research in Computer Science, Volume 8, Issue. 1,
pp.46-52, ‘A Comparative Statistical Approach towards NPA of PSU and Private Sector
Banks in India’, ISSN No. 0976-5697
6. International Journal of Management Studies, Vol.2, Special Issue.3, pp.35-41, ‘ A Study
of Financial Performance: A Comparative Analysis of State Bank of India and ICICI
Bank’, ISSN(Print)- 5570-2090 ISSN(Online)- 5558-0351

6
Meaning of Financial Statement Analysis:-
Financial statement analysis (or financial analysis) is the process of reviewing and
analyzing a company's or banks financial statements to make better economic decisions. These
statements include the income statement, balance sheet, statement of cash flows, and a statement
of changes in equity. Financial statement analysis is a method or process involving specific
techniques for evaluating risks, performance, financial health, and future prospects of an
organization.

It is used by a variety of stakeholders, such as credit and equity investors, the

government, the public, and decision-makers within the organization. These stakeholders have
different interests and apply a variety of different techniques to meet their needs. For example,
equity investors are interested in the long-term earnings power of the organization and perhaps
the sustainability and growth of dividend payments. Creditors want to ensure the interest and
principal is paid on the organizations debt securities (e.g., bonds) when due.

Common methods of financial statement analysis include fundamental analysis,

horizontal and vertical analysis and the use of financial ratios. Historical information combined
with a series of assumptions and adjustments to the financial information may be used to project
future performance. The Chartered Financial Analyst designation is available for professional
financial analysts.

Industry Profile:-
A bank is a financial Institution that accepts deposits from the public and creates credit.
Lending activities can be performed either directly or indirectly through capital markets. Due to
their importance in the financial stability of a country, banks are highly regulated in most
countries. Most nations have institutionalized a system known as fractional reserve
banking under which banks hold liquid assets equal to only a portion of their current liabilities.
In addition to other regulations intended to ensure liquidity, banks are generally subject

7
to minimum capital requirements based on an international set of capital standards, known as
the Basel Accordings.

Banking in its modern sense evolved in the 14th century in the prosperous cities
of Renaissance Italy but in many ways was a continuation of ideas and concepts
of credit and lending that had their roots in the ancient world. In the history of banking, a number
of banking dynsties – notably, the Medicis, the Fuggers, the Welsers, the Berenbergs, and
the Rothschids – have played a central role over many centuries. The oldest existing retail
bank is Banca Monte dei Paschi di Siena, while the oldest existing merchant bank is Berenberg
Bank.

History of Baking Industry:-

Banking began with the first prototype banks of merchants of the ancient world, which
made grain loans to farmers and traders who carried goods between cities and this system is
known as a barter system. This began around 2000 BC in Assyria and Babylonia. Later,
in ancient Greece and during the Roman Empire, lenders based in temples made loans and added
two important innovations: they accepted deposits and changed money. Archaeology from this
period in ancient China and India also shows evidence of money lending activity.

The origins of modern banking can be traced to medieval and early Renaissance Italy, to
the rich cities in the centre and north like Florence, Lucca, Siena, Venice and Genoa.
The Bardi and Peruzzi families dominated banking in 14th-century Florence, establishing
branches in many other parts of Europe.[2] One of the most famous Italian banks was the Medici
Bank, set up by Giovanni di Bicci de' Medici in 1397.[3] The earliest known state deposit
bank, Banco di San Giorgio (Bank of St. George), was founded in 1407 at Genoa, Italy.

Modern banking practices, including fractional reserve banking and the issue
of banknotes, emerged in the 17th and 18th centuries. Merchants started to store their gold with
the goldsmiths of London, who possessed private vaults, and charged a fee for that service. In
exchange for each deposit of precious metal, the goldsmiths issued receipts certifying the
quantity and purity of the metal they held as a bailee; these receipts could not be assigned, only
the original depositor could collect the stored goods.

8
 Figure no. 4.1: The Bank of England Charter (1694).

Gradually the goldsmiths began to lend the money out on behalf of the depositor, which
led to the development of modern banking practices; promissory notes (which evolved into
banknotes) were issued for money deposited as a loan to the goldsmith. The goldsmith paid
interest on these deposits. Since the promissory notes were payable on demand, and the advances
(loans) to the goldsmith's customers were repayable over a longer time period, this was an early
form of fractional reserve banking. The promissory notes developed into an assignable
instrument which could circulate as a safe and convenient form of money backed by the
goldsmith's promise to pay, allowing goldsmiths to advance loans with little risk of default.
Thus, the goldsmiths of London became the forerunners of banking by creating new money
based on credit.

The Bank of England was the first to begin the permanent issue of banknotes, in
1695.[8] The Royal Bank of Scotland established the first overdraft facility in 1728. By the
beginning of the 19th century a bankers' clearing house was established in London to allow
multiple banks to clear transactions. The Rothschilds pioneered international finance on a large
scale, financing the purchase of the Suez canal for the British government.

Company Profile:-

State Bank of India:-

State Bank of India (SBI) is an Indian multinational, public sector banking and financial
services company. It is a government-owned corporation with its headquarters in Mumbai,

9
Maharashtra. On 1st April, 2017, the State Bank of India, which was India's largest bank, merged
with five of its associate banks (State Bank of Bikaner & Jaipur, State Bank of Hyderabad, State
Bank of Mysore, State Bank of Patiala and State Bank of Travancore), and with the Bharatiya
Mahila Bank. This was the first ever large scale consolidation in the Indian banking industry.
With the merger, SBI became one of the 50 largest banks in the world (balance sheet size of ₹33
trillion, 278,000 employees, 420 million customers, and more than 24,000 branches and 59,000
ATMs). SBI's market share was projected to increase to 22 percent from 17 per cent.

It has large number of subsidiaries and joint ventures out of India including United
States, Canada, Nigeria, Bhutan and Nepal. This bank has largest retail banking customer base in
India.

History of State Bank of India:-

The roots of the State Bank of India lie in the first decade of the 19th century, when
the Bank of Calcutta later renamed the Bank of Bengal, was established on 2 June 1806. The
Bank of Bengal was one of three Presidency banks, the other two being the Bank of Bombay
(incorporated on 15 April 1840) and the Bank of Madras (incorporated on 1 July 1843). All three
Presidency banks were incorporated as joint stock companies and were the result of royal
charters. These three banks received the exclusive right to issue paper currency till 1861 when,
with the Paper Currency Act, the right was taken over by the Government of India. The
Presidency banks amalgamated on 27 January 1921, and the re-organised banking entity took as
its name Imperial Bank of India. The Imperial Bank of India remained a joint stock company but
without Government participation.

Pursuant to the provisions of the State Bank of India Act of 1955, the Reserve Bank of India,
which is India's central bank, acquired a controlling interest in the Imperial Bank of India. On 1
July 1955, the imperial Bank of India became the State Bank of India. In 2008, the Government
of India acquired the Reserve Bank of India's stake in SBI so as to remove any conflict of
interest because the RBI is the country's banking regulatory authority.

10
Present Profile of SBI(2017):-

Total Assets Rs. 2705966 Crores

Total Equity Rs. 188286 crores
Number of Employees 209567
ATM’s 43000
Table no. 4.1

Subsidiaries of SBI:-

State Bank of Bikaner & Jaipur

State Bank of Hydrabad
State Bank of Mysore
State Bank of Patiala
State Bank of Travancore
Table no. 4.2

ICICI Bank:-

ICICI Bank, stands for Industrial Credit and Investment Corporation of India, is
an Indian multinational banking and financial services company headquartered
in Mumbai, Maharashtra, India, with its registered office in Vadodara. In 2017, it is the third largest
bank in India in terms of assets and third in term of market capitalisation. It offers a wide range of
banking products and financial services for corporate and retail customers through a variety of
delivery channels and specialised subsidiaries in the areas of investment banking, life, non-life
insurance, venture capital and asset management. The bank has a vast network of 4,850 branches
and 13,917 ATMs in India, and has a presence in 19 countries including India.

The bank has subsidiaries in the United Kingdom and Canada; branches in United
States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar, Oman, Dubai International Finance

11
Centre, China, and South Africa, and representative offices in United Arab Emirates, Bangladesh,
Malaysia and Indonesia.

Present Profile of ICICI Bank(2017):-

Total Assets Rs. 771791 Crores

Total Equity Rs. 99951 crores
Number of Employees 84096
ATM’s 13917
Table no. 4.3

Subsidiaries of ICICI Bank:-

National Internationl
ICICI Lombard ICICI Bank UK PLC
ICICI Prudential Life Insurance Company ICICI Bank Canada
Ltd.
ICICI Securities Limited ICICI Bank Eurasia LLC
ICICI Prudential Asset Management
Company Limited
ICICI Venture
ICICI Foundation
Table no. 4.4

12
INTRODUCTION:-

Research methodology is a way to systematically solve the research problem. It May be

understood as a science of studying by which research is done systematically. In that various
steps, those are generally adopted by a researcher in studying his problem along with the logic
behind them.

“The procedures by which researchers go about their work of describing, explaining and
predicting phenomenon are called methodology”.

TYPE OF RESEARCH:-

This project “Comparative Financial Statement Analysis of Public Sector Bank and Private
Sector Bank with Special Reference to SBI and ICICI bank” is considered as an analytical
research.
Analytical Research is defined as the research in which, researcher has to use facts or
information already available, and analyze these to make a critical evaluation of the facts,
figures, data or material.

RESEARCH DESIGN USED

1) Research Type Exploratory Research

2) Data

a) Secondary Annual Reports of SBI and ICICI bank

3) Data Analysis/Technique Graphical Representation & Ratio Analysis

Table no. 5.1

13
SOURCES OF RESEARCH DATA:-
There are mainly two sources through which the data required for the research is
collected:-

1) PRIMARY DATA:-

The primary data is that data which is collected fresh or first hand, and for first time which is
original in nature.

In this study, there are no primary data available for analysis.

2) SECONDARY DATA:-

The secondary data are those which have already collected and stored. Secondary data includes
data from records, research papers, annual reports of the company, corporation and organization
etc. It will save the time, money and efforts to collect the data.

The major source of data for this project was collected through research papers and balance
sheet of 5 years period from 2012-13 to 2016-17 & some more information collected from
internet and text sources.

TOOLS USED FOR ANALYSIS OF DATA:-

The data were analyzed using the following financial tools. They are:-

♦ Ratio Analysis

14
SCOPE OF THE STUDY:-

The scope of the study is identified after and during the study is conducted. The main scope
of the study was to put into practical the theoretical aspect of the study into real life work
experience. The present study is undertaken to highlight the financial performance of SBI bank
and ICICI bank. SBI and ICICI Banks, being the best bank in India have been selected for the
purpose of the study. Ratio analysis is one of the major criteria to determine the financial
performance of both banks and this study will help to understand the financial performance of
State Bank of India and ICICI Bank.

LIMITATIONS OF THE STUDY:-

The present study is confined to secondary data only and limited to financial figures.
The secondary data was taken from the various annual reports of the SBI and ICICI Bank
therefore it may be possible that the data shown in the annual reports may be window
dressed which does not show the actual position of the banks.
This study does not consider non-financial facts and figures.
The analysis is limited to just five years of data (from year 2012-13 to 2016-17) for
financial analysis.

15
 PROFITABILITY RATIOS
RETURN ON NET WORTH RATIO/ RETURN ON
SHAREHOLDERS INVESTMENT:
INVESTMENT:-

Return on Net Worth= (Net Profit after Tax/ Net Worth) X 100

Year SBI ICICI

2012-13 14.26 12.48

2013-14 9.21 13.40

2014-15 10.20 13.89

2015-16 6.89 10.84

2016-17 6.69 10.11

Table no. 6.1

Return on Net worth Ratio

16 14.26 13.89
13.4
14 12.48
10.2 10.84
12 10.11
9.21
10
6.89 6.69 SBI
8
6 ICICI
4
2
0
2012-13 2013
2013-14 2014-15 2015-16 2016-17

Graph no. 6.1

INTERPRETATION:-

The above graph shows that Net wo

worth Ratio of SBI is decreasing every year except 2014-15
and Net worth Ratio of ICICI is increasing year by year from 2012-13 to 2014-15
15 but decreased
in 2015-16 and 2016-17.. Net worth Ratio of SBI is higher than ICICI in 2012
2012-13
13 but it becomes
comparatively lower
er from year 2013
2013-14 to 2016-17.

16
 EFFICIENCY RATIOS
RETURN ON ASSETS RATIO:
RATIO:-
ROA= Net Profit X 100

Average Total Assets

Year SBI ICICI

2012-13 0.97 1.64

2013-14 0.65 1.73

2014-15 0.68 1.80

2015-16 0.46 1.40

2016-17 0.43 1.32

Table no. 6.2

Returns on Assets Ratio

2 1.73 1.8
1.64
1.4 1.32
1.5
0.97
1 SBI
0.65 0.68
0.46 0.43 ICICI
0.5

0
2012-13 2013
2013-14 2014-15 2015-16 2016-17

Graph no. 6.2

INTERPRETATION:-

The above graph shows that Returns on Assets Ratio of SBI is approximately decreasing
every year and Returns on Assets R
Ratio of ICICI bank is increased every year from 2012-13 to
2014-15 but decreased in 2015
2015-16 and 2016-17. Assets Returns Ratio of ICICI bank is
comparatively higher than SBI eve
every year from 2012-13 to 2016-17.

17
 MARKET TEST RATIOS
EARNING PER SHARE(EPS) RATIO:
RATIO:-

Earnings per Share=

= Net Profit after Tax/ Number of Equity Shares

Year SBI ICICI

2012-13 206.21 72.16

2013-14 145.90 84.93

2014-15 175.49 96.37

2015-16 128.18 83.62

2016-17 131.49 84.12

Table no. 6.3

250
EPS Ratio
206.21
200 175.49
145.9
128.18 131.49
150
96.37 SBI
84.93 83.62 84.12
100 72.16 ICICI

50

0
2012-13 2013
2013-14 2014-15 2015-16 2016-17

Graph no. 6.3

INTERPRETATION:-

The above graph shows that Earning Per share of SBI is fluctuating every year and
Earning per share of ICICI bank is increasing every year except 2015-16. Earnings per share of
SBI are higher than ICICI bank every year.

18
 DIVIDEND PAYOUT RATIO:
RATIO:-
Dividend Payout Ratio = Dividend per share ×100

Earnings per share

Year SBI ICICI

2012-13 20.12 27.71

2013-14 20.56 27.07

2014-15 19.51 25.93

2015-16 20.28 29.89

2016-17 19.78 24.85

Table no. 6.4

Dividend Payout Ratio 29.89

30 27.71 27.07
25.93 24.85
25
20.12 20.56 19.51 20.28 19.78
20

15 SBI
ICICI
10

0
2012-13 2013
2013-14 2014-15 2015-16 2016-17

Graph no. 6.4

INTERPRETATION:-

The above graph shows that Dividend Payout ratio of SBI is fluctuating every
ev year from
2012-13 to 2016-17 and Dividend Payout Ratio of ICICI bank is decreasing every year except
2015-16.
16. Dividend Payout Ratio of ICICI bank is higher than SBI every year comparatively
compar
from 2012-13 to 2016-17.

19
 PROFIT & LOSS ACCOUNT RATIOS
OTHER INCOME/ TOTAL INCOME RATIO:
RATIO:-
Other Income to Total Income Ratio= Other Income ×100

Total Income

Year SBI ICICI

2012-13 11.82 17.24

2013-14 11.98 19.1

2014-15 12.90 19.87

2015-16 14.68 22.51

2016-17 16.81 26.48

Table no. 6.5

Other Income/ Total Income Ratio

30 26.48

25 22.51
19.1 19.87
20 17.24 16.81
14.68
15 11.98 12.9 SBI
11.82
ICICI
10

0
2012-13 2013
2013-14 2014-15 2015-16 2016-17

Graph no. 6.5

INTERPRETATION:-

The above graph shows that Other Income/ Total Income Ratio of SBI and ICICI bank are
increasing every
ery year from 2012
2012-13 to 2016-17 and this ratio of ICICI bank is higher than SBI
comparatively.

20
 OPERATING EXPENSES/ TOTAL INCOME RATIO:-
Operating Expenses to Total Income Ratio= (Operating expenses
expenses-Depreciation
Depreciation) ×100

Total Income

Year SBI ICICI

2012-13 20.74 17.60

2013-14 22.20 17.82

2014-15 21.47 17.69

2015-16 20.89 17.61

2016-17 20.94 19.01

Table no. 6.6

Operating Expenses/ Total Income Ratio

25 22.2 21.47
20.74 20.89 20.94
19.01
20 17.6 17.82 17.69 17.61

15
SBI
10 ICICI

0
2012-13 2013
2013-14 2014-15 2015-16 2016-17

Graph no. 6.6

INTERPRETATION:-

The above graph shows that Operating Expenses/ Total Income Ratio of SBI and ICICI
bank are fluctuating every year from 2012
2012-13 to 2016-17 and this ratio
tio of SBI is higher
highe than
ICICI bank comparatively every year.

21
 BALANCE SHEET RATIOS
CAPITAL ADEQUACY RATIO:
RATIO:-

Capital Adequacy Ratio= Tier 1 Capital + Tier 2 Capital

Year SBI ICICI

2012-13 12.92 18.74

2013-14 12.96 17.70

2014-15 12 17.02

2015-16 13.12 16.64

2016-17 13.11 17.39

Table no. 6.7

Capital Adequacy Ratio

18.74
20 17.7 17.02 17.39
16.64

15 12.92 12.96 13.12 13.11

12

10 37.46
32.96
5

0
2012-13 2013
2013-14 2014-15 2015-16 2016-17

Graph no. 6.7

INTERPRETATION:-

The above graph shows that Capital Adequacy Ratio of SBI is fluctuating every year and
Capital Adequacy Ratio of ICICI bank is decreasing every year except 2015-16
16 and this ratio of
ICICI bank is comparatively higher than SBI ev
every year from 2012-13 to 2016-17
17.

22
 DEBT COVERAGE RATIOS
CREDIT DEPOSIT RATIO:
RATIO:-
Credit Deposit Ratio= Total Advances ×100

Total Deposits

Year SBI ICICI

2012-13 86.93 99.19

2013-14 86.76 102.04

2014-15 82.45 107.18

2015-16 84.57 103.28

2016-17 76.83 94.73

Table no. 6.8

Credit Deposit Ratio

120 107.18 103.28
99.19 102.04
94.73
100 86.93 86.76 82.45 84.57
76.83
80
60 6.47
ICICI
40
20
0
2012-13 2013
2013-14 2014-15 2015-16 2016-17

Graph no. 6.8

INTERPRETATION:-

The above graph shows that Credit Deposit Ratio of SBI is decreasing every year except
2015-16 and Credit Deposit
sit Ratio of ICICI is increased from 2012-13 to 2014-15
15 and decreased
from 2015-16 to 2016-17
17 and CDR of ICICI bank is comparatively higher
gher than SBI every
ev year
from 2012-13 to 2016-17.

23
 INVESTMENT DEPOSIT RATIO:
RATIO:-
Investment Deposit Ratio= Total Investments ×100

Total Deposits

Year SBI ICICI

2012-13 29.17 58.57

2013-14 28.56 53.33

2014-15 31.40 51.60

2015-16 27.56 38.06

2016-17 37.46 39.96

Table no. 6.9

58.57 Investment Deposit Ratio

60 53.33 51.6
50
38.06 39.96
37.46
40
29.17 31.4
28.56 27.56 SBI
30
ICICI
20

10

0
2012-13 2013--14 2014-15 2015-16 2016-17

Graph no. 6.9

INTERPRETATION:-

In the above graph, we can see that Investment Deposit Ratio of SBI is fluctuating every
year and Investment Deposit Ratio of ICICI bank is decreasing every year from 2012-13
2012 to
2016-17.. Investment Deposit Ratio of ICICI bank is comparatively higher than SBI every
ev year
from 2012-13 to 2016-17.

24
 CASH DEPOSIT RATIO:
RATIO:-
Cash Deposit Ratio = Cash & Bank Balance ×100

Total Deposits

Year SBI ICICI

2012-13 5.48 6.52

2013-14 6.09 6.58

2014-15 7.34 7.09

2015-16 7.49 6.43

2016-17 6.26 6.47

Table no. 6.10

Cash Deposit Ratio

7.34 7.09 7.49
8
6.52 6.58 6.43 6.26 6.47
7 6.09
5.48
6
5
SBI
4
3 ICICI
2
1
0
2012-13 2013-14
14 2014-15 2015-16 2016-17

Graph no. 6.10

INTERPRETATION:-

The above graph shows that Cash Deposit Ratio of SBI is increasing every year except
2016-17 and Cash Deposit Ratio
atio of ICICI bank is increasing every year as compared to its
previous year except 2015-16. Cash Deposit Ratio of ICICI bank is compar
comparatively
atively higher in
2012-13, 2013-14 & 2016-17 and lower in 2014
2014-15 & 2015-16 than SBI.

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 GROSS NON PERFORMING ASSETS RATIO:
RATIO:-
Gross Non Performing Assets
Assets= Gross NPA ×100

Assets

Year SBI ICICI

2012-13 3.27 1.79

2013-14 3.44 1.77

2014-15 2.77 2.34

2015-16 4.34 3.64

2016-17 4.15 3.57

Table no. 6.11

Gross NPA Ratio

5 4.34 4.15
3.44 3.64 3.57
4 3.27
2.77
3 2.34
SBI
1.79 1.77
2 ICICI

0
2012-13 2013--14 2014-15 2015-16 2016-17

Graph no. 6.11

INTERPRETATION:-

The above graph shows that Gross NPA ratio of SBI is fluctuating every year and Gross
NPA ratio of ICICI bank is increasing approximately ev
every
ery year and this ratio of SBI is higher
than ICICI bank every year from 2012
2012-13 to 2016-17.

26
 FINDINGS

ICICI bank generated more profit than SBI from the money shareholders invested in it
every year except 2012-13 from 2012-13 to 2016-17.
ICICI bank generated more profit from its assets than SBI from 2012-13 to 2016-17.
SBI earns more from its each share than ICICI bank from 2012-13 to 2016-17 which
helps to attract more customers or buyers of shares.
ICICI bank paid more money to its investors in the form of dividends of total net income
than SBI from 2012-13 to 2016-17.
ICICI bank generates more money than SBI from its other income generating facilities
from 2012-13 to 2016-17 which indicates a better position of ICICI bank.
Operating expenses of ICICI bank are lower than SBI from 2012-13 to 2016-17 which
shows ICICI bank is in better position as compared to SBI.
Capital adequacy ratio of ICICI bank and SBI is higher than standard rate every year and
best period for absorbing their losses for SBI is 2015-16 and for ICICI it is 2012-13 from
2012-13 to 2016-17.(Standard rate = 8%)
ICICI bank created more Loans- assets from the deposits received than SBI every year.
SBI is in good position as compared to ICICI bank due to maintaining its CDR and has
more money to invest as other investments.(Good condition is neither too high nor too
low)
SBI maintained its Investment Deposit Ratio and is in a better position due to having
more money for bad conditions to absorb the difficulties as compared to ICICI bank from
2012-13 to 2016-17 and ICICI bank is also in good position in 2015-16.
SBI invested less in 2012-13, 2013-14 & 2016-17 and more in 2014-15 & 2015-16 as
cash and bank balance from total deposit received.
ICICI bank have less NPA as compared to SBI every year from 2012-13 to 2016-17.

27
 CONCLUSION

State Bank of India is one of the largest bank in the public sector and ICICI is in the
private sector.
ICICI bank is always in good position approximately in all parameters as compared to
SBI.
On the other hand, SBI is performing well in terms of EPS and Credit Deposit Ratio from
2012-13 to 2016-17.
The ICICI bank is financially sound as compare to the SBI because SBI has more Gross
Non Performing Assets than ICICI bank which is not good sign for SBI.
Overall, the performance of SBI and ICICI bank during 2012-13 to 2016-17 in the entire
sector is almost satisfactory because every time both are up to the standard.

28
With this study, we learned how the products & investments are helping the banks.
We learned which ratio is good and which ratio is bad for banks.
Capital Structure of Banking Industry affects the whole country because it is the blood
line of any country’s economy.
ICICI bank’s management is better than SBI.
Lower Gross NPA is better for any bank’s financial position.
Sound financial health of a bank is the guarantee not only to its depositors but is equally
significant for the shareholder.

29
A. Books:
Jagdish R. Raiyani, Financial Ratios and Financial Statement Analysis, 2nd Edition
B. Journals:
International Journal of Scientific Research in Computer Science and Engineering, Vol.4,
Issue.3, pp.1-6, ‘A Comparative Study of Financial Performance of SBI and ICICI Banks
is India’, ISSN- 2320-76391
International Journal of Management Studies, Vol.4, Special Issue.3, pp.110-117, ‘ A
Study of Financial Performance: A Comparative Analysis of State Bank of India and
ICICI Bank’, ISSN(Print)- 2249-0302 ISSN(Online)- 2231-25282
International Journal For Innovative Research In Multidisciplinary Field, Volume - 3,
Issue 6, pp.30-33, ‘Performance Of Banking Sector In India -A Comparative Study Of
SBI, ICICI & CITI Bank’, ISSN – 2455-06203
International Journal of Applied Research,vol.3, Issue.2, pp.449-452, ‘Analysis of
financial performance of state bank of India using camels approach’,ISSN Print: 2394-
7500 ISSN Online: 2394-58694
International Journal of Advanced Research in Computer Science, Volume 8, Issue. 1,
pp.46-52, ‘A Comparative Statistical Approach towards NPA of PSU and Private Sector
Banks in India’, ISSN No. 0976-56975
International Journal of Management Studies, Vol.2, Special Issue.3, pp.35-41, ‘ A Study
of Financial Performance: A Comparative Analysis of State Bank of India and ICICI
Bank’, ISSN(Print)- 5570-2090 ISSN(Online)- 5558-03516
C. Websites
https://www.ndtv.com/business/stock/state-bank-of-india_sbin/reports

https://www.icicibank.com/aboutus/history.page

https://www.simplilearn.com/financial-performance-rar21-article

https://www.accountingtools.com/articles/2017/5/14/financial-statement-analysis

http://www.moneycontrol.com/financials/statebankindia

http://www.moneycontrol.com/financials/icicibank

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