A

TRAINING REPORT
ON
(CUSTOMER SATISFACTION: A COMPARATIVE STUDY FOR NRI BANKING
SERVICES OF SBI AND ICICI BANK)

Submitted to:
Satyug Darshan Institute of Engineering and Technology

By:

NAME: PREETI
ROLLNO-(5030019)

Batch 2015 – 2018

In Partial Fulfillment of
Bachelor of Business Administration
(Industry-Integrated)
(Specialization: Financial Services and Banking)

MAHARSHI DAYANAND UNIVERSITY

ROHTAK

(Nov, 2017)

Satyug Darshan Institute of Engineering and Technology

Bhupani Lalpur Road, Village Bhupani
Faridabad - 121002, NCR, Haryana, India
 DECLARATION

I, Ms. Preeti hereby declare that this summer training report is the record of authentic
work carried out by me during the period from 6th August 2017 to 10th November
2017and has not been submitted to any other University or Institute for the award of
any degree
/ diploma etc.

(Signature)
Preeti

Date: 10th November 2017

COMPANY CERTIFICATE
 BONAFIDE CERTIFICATE
This is to certify that Ms.Preeti of Satyug Darshan Institute of Engineering and
Technology has successfully completed the project work (CUSTOMER
SATISFACTION: A COMPARATIVE STUDY FOR NRI BANKING SERVICES
OF SBI AND ICICI BANK) in partial fulfillment of requirement for the completion
of Bachelor in Business Administration (BBA IIFSB) course as prescribed by the
Maharshi Dayanand University, Rohtak, (HARYANA).
This project report is the record of authentic work carried out by him/her during the
period from 6th August 2017 to 10th November 2017 He / she has worked under my
guidance.

(Signature)
Paramjeet Singh Ahuja

Assistant Professor, BBA Department

Project Guide (Internal)
Date:
Counter signed by

(Signature)
Mr. Ravi Bakshi
Department Coordinator (BBA Department
DATE: 10th November 2017
 ACKNOWLEDGEMENT
Before we get into thick of things, I would like to add a few words of appreciation for
the people who have been a part of this project right from its inception. The writing of
this project has been one of the significant academic challenges I have faced and
without the support, patience, and guidance of the people involved, this task would
not have been completed. It is to them I owe my deepest gratitude.
It gives me immense pleasure in presenting this project report on " CUSTOMER
SATISFACTION: A COMPARATIVE STUDY FOR NRI BANKING SERVICES
OF SBI AND ICICI BANK ". It has been my privilege to have a team of project
guide who have assisted me from the commencement of this project. The success of
this project is a result of sheer hard work, and determination put in by me with the
help of my project guide. I hereby take this opportunity to add a special note of thanks
for Mr. Amit Virmani, who undertook to act as my mentor despite her many other
academic and professional commitments. Her wisdom, knowledge, and commitment
to the highest standards inspired and motivated me. Without her insight, support, and
energy, this project wouldn't have kick-started and neither would have reached
fruitfulness.
I also feel heartiest sense of obligation to my library staff members & seniors, who
helped me in collection of data & resource material & also in its processing as well as
in drafting manuscript. The project is dedicated to all those people, who helped me
while doing this project.

Preeti
TABLE OF CONTENT

S PARTICULARS PAGE
. NO.
N
O
1 Introduction to the study

2 Company Profile

3 Research methodology
Objective of study
Research Design
Method of data collection
Limitations of the study

4 Data analysis and Interpretation

5 Finding , Suggestion and conclusion

6 Bibliography

7 Annexure
 PREFACE
There is no doubt, that class room study is quite important for gaining theoretical knowledge,
but practical is also important of students who wants to equip themselves with the real life of
corporate environment in any field of studies. It is also true in Management studies.

Project work is conducted as an integral part of the Management Courses. It provides an

opportunity to apply the theoretically knowledge in practice. Hence, it gives an excellent
opportunity to a student to apply his capability, ability, intellect, knowledge, brief reasoning
and mettle by giving a solution to the assigned problem, which reflects his caliber.
 CHAPTER-1
INTRODUCTION
INTRODUCTION TO BANKING IN INDIA:
The banking section will navigate through all the aspects of the Banking System in India. It
will discuss upon the matters with the birth of the banking concept in the country to new
players adding their names in the industry in coming few years.

The banker of all banks, Reserve Bank of India (RBI), the Indian Banks Association (IBA)
and top 20 banks like IDBI, HSBC, ICICI, ABN AMRO, etc. has been well defined under
three separate heads with one page dedicated to each bank.

However, in the introduction part of the entire banking cosmos, the past has been well
explained under three different heads namely:

History of Banking in India

Nationalization of Banks in India

Scheduled Commercial Banks in India

The first deals with the history part since the dawn of banking system in India. Government
took major step in the 1969 to put the banking sector into systems and it nationalized 14
private banks in the mentioned year. This has been elaborated in Nationalization Banks in
India. The last but not the least explains about the scheduled and unscheduled banks in India.
Section 42 (6) (a) of RBI Act 1934 lays down the condition of scheduled commercial banks.

HISTORY OF BANKING IN INDIA:

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 it should be able to meet new
challenges posed by the technology and any other external and internal factors. For the past
three decades India's 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 corners
of the country. The government's regular policy for Indian bank since 1969 has paid rich
dividends with the nationalization of 14 major private banks of India.

Not long ago, an account holder had to wait for hours at the bank counters for getting a draft
or for withdrawing his own money. Today, he has a choice. Gone are days when the most
efficient bank transferred money from one branch to other in two days. Now it is simple as
instant messaging or dials a pizza. Money has become the order of the day.

The first bank in India, though conservative, was established in 1786. From 1786 till today,
the journey of Indian Banking System can be segregated into three distinct phases. They are
as mentioned below:
Early phase from 1786 to 1969 of Indian Banks

Nationalization of Indian Banks and up to 1991 prior to Indian banking sector Reforms.

New phase of Indian Banking System with the advent of Indian Financial& Banking Sector
Reforms after 1991.

SCHEDULED COMMERCIAL BANKS IN INDIA:

The commercial banking structure in India consists of:

Scheduled Commercial Banks in India

Unscheduled Banks in India

Scheduled Banks in India constitute those banks which have been included in the Second
Schedule of Reserve Bank of India (RBI) Act, 1934. RBI in turn includes only those banks in
this schedule which satisfy the criteria laid down vide section 42 (6) (a) of the Act.
As on 30th June, 1999, there were 300 scheduled banks in India having a total network of
64,918 branches. The scheduled commercial banks in India comprise of State bank of India
and its associates (8), nationalized banks (19), foreign banks (45), private sector banks (32),
co-operative banks and regional rural banks.

"Scheduled banks in India" means the State Bank of India constituted under the State Bank of
India Act, 1955 (23 of 1955), a subsidiary bank as defined in the State Bank of India
(Subsidiary Banks) Act, 1959 (38 of 1959), a corresponding new bank constituted under
section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5
of 1970), or under section 3 of the Banking Companies (Acquisition and Transfer of
Undertakings) Act, 1980 (40 of 1980), or any other bank being a bank included in the Second
Schedule to the Reserve Bank of India Act, 1934 (2 of 1934), but does not include a co-
operative bank".

"Non-scheduled bank in India" means a banking company as defined in clause (c) of section
5 of the Banking Regulation Act, 1949 (10 of 1949), which is not a scheduled bank".

The following are some of the Scheduled Banks in India (Public Sector):

 State Bank of India

 Allahabad Bank
 Bank of India
 Central Bank of India
 Dena Bank

The following are some of the Scheduled Banks in India (Private Sector):

 Axis Bank Ltd

 ICICI Bank Ltd
 HDFC Bank Ltd
  Bank of Punjab Ltd
 IDBI Bank Ltd

The following are some of the Scheduled Foreign Banks in India:

 American Express Bank Ltd.

 Bank of Tokyo Ltd.
 City Bank N.C.

BANKING SERVICES IN INDIA:

With years, banks are also adding services to their customers. The Indian banking industry is
passing through a phase of customers market. The customers have more choices in choosing
their banks. A competition has been established within the banks operating in India.With stiff
competition and advancement of technology, the services provided by banks have become
more easy and convenient. The past days are witness to an hour wait before withdrawing cash
from accounts or a cherub from north of the country being cleared in one month in the south.

This section of banking deals with the latest discovery in the banking instruments along with
the polished version of their old systems.

Bank Account:

Bank account is the most common and first service of the banking sector. There are different
types of bank account in Indian banking sector. The bank accounts are as follows:

Bank Savings Account - Bank Savings Account can be opened for eligible person / persons
and certain organizations / agencies (as advised by Reserve Bank of India (RBI) from time to
time)

Bank Current Account - Bank Current Account can be opened by individuals / partnership
firms / Private and Public Limited Companies / HUFs / Specified Associates / Societies /
Trusts, etc.

Bank Term Deposits Account - Bank Term Deposits Account can be opened by individuals
/ partnership firms / Private and Public Limited Companies / HUFs/ Specified Associates /
Societies / Trusts, etc.

Bank Account Online - With the advancement of technology, the major banks in the public
and private sector has facilitated their customer to open bank account online. Bank account
online is registered through a PC with an internet connection. The advent of bank account
online has saved both the cost of operation for banks as well as the time taken in opening an
account.

Plastic Money:
Credit cards in India are gaining ground. A number of banks in India are encouraging people
to use credit card. The concept of credit card was used in 1950 with the launch of charge
cards in USA by Diners Club and American Express. Credit card however became more
popular with use of magnetic strip in 1970.Credit card in India became popular with the
introduction of foreign banks in the country. Credit cards are financial instruments, which can
be used more than once to borrow money or buy products and services on credit. Basically
banks, retail stores and other businesses issue these.

Loans:

Banks in India with the way of development have become easy to apply in loan market. The
following loans are given by almost all the banks in the country:

Personal Loan

Car load or Auto Loan

Loan against Shares

Home Loan

Education Loan or Student Loan

Money Transfer:

Beside lending and depositing money, banks also carry money from one corner of the globe
to another. This act of banks is known as transfer of money. This activity is termed as
remittance business. Banks generally issue Demand Drafts, Banker's Cheque, Money Orders
or other such instruments for transferring the money. This is a type of Telegraphic Transfer
or Tele Cash Orders. It has been only a couple of years that banks have jumped into the
money transfer businesses in India. The international money transfer market grew 9.3% from
2003 to 2004 i.e. from US$213 bn. to US$233 bn. in 2004. Economists say that the market of
money transfer will further grow at a cumulative 12.1% average growth rate through 2009.

FUTURE OF BANKING IN INDIA:

A healthy banking system is essential for any economy striving to achieve good growth and
yet remain stable in an increasingly global business environment. The Indian banking system
has witnessed a series of reforms in the past, like deregulation of interest rates, dilution of
government stake in PSBs, and increased participation of private sector banks. It has also
undergone rapid changes, reflecting a number of underlying developments. This trend has
created new competitive threats as well as new opportunities.

Given the competitive market, banking will (and to a great extent already has) become a
process of choice and convenience. The future of banking would be in terms of integration.
This is already becoming a reality with new-age banks such as YES Bank ICICI Bank, and
others too adopting a single-PIN, OTP facility. Geography will no longer be an inhibitor.
Technology will prove to be the differentiator in the short-term but the dynamic environment
will soon lead to its saturation and what will ultimately be the key to success will be a better
relationship management.

If one were to say that the future of banking in India is bright, it would be a gross
understatement. With the growing competition and convergence of services, the customers
stand only to benefit more to say the least. At the same time, emergence of a multitude of
complex financial instruments is foreseen in the near future (the trend is visible in the current
scenario too) which is bound to confuse the customer more than ever unless she spends hours
(maybe days) to understand the same. Hence, I see a growing trend towards the importance of
relationship managers. The success (or failure) of any bank would depend not only on
tapping the untapped customer base (from other departments of the same bank, customers of
related

similar institutions or those of the competitors) but also on the effectiveness in retaining the
existing base.

India has witness to a sea change in the way banking is done in the past more than two
decades. Since 1991, the Reserve Bank of India (RBI) took steps to reform the Indian
banking system at a measured pace so that growth could be achieved without exposure to any
macro-environment and systemic risks. Some of these initiatives were deregulation of interest
rates, dilution of the government stake in public sector banks (PSBs), guidelines being issued
for risk management, asset classification, and provisioning. Technology has made
tremendous impact in banking. ‘Anywhere banking’ and ‘Anytime banking’ have become a
reality. The financial sector now operates in a more competitive environment than before and
intermediates relatively large volume of international financial flows. In the wake of greater
financial deregulation and global financial integration, the biggest challenge before the
regulators is of avoiding instability in the financial system.

NRI BANKING
Introduction

As per RBI guidelines, the residential status of an Indian changes to t hat of

the N o n - R e s i d e n t , i n t h e e v e n t o f h i s s t a y a b r o a d b e i n g m o r e t h a n 1 8 3
d a ys . T h i s p e r i o d o f 1 8 3 d a ys i s n o t a p p l i c a b l e i n c e r t a i n c a s e s l i k e
g o i n g o v e r s e a s f o r employment or business. It is mandatory to inform the bank of
your change of your residential status .With a view to attract the savings and other remittance
into India through banking channels from the person of Indian Nationality / Origin
who are residing abroad and bolster the balance of payment position, the Government of
India introduced in1970 Non-Resident (External) Account Rules which are governed by the
Exchange Control Regulations. The funds held in Non-Resident (External) Accounts (NRE
Accounts) qualify for certain benefits like exemptions from taxes in India, free
repatriation facilities, etc. NRI banking facilities are available to NRIs and PIOs.
WHO IS A NON – RESIDENT INDIAN [NRI]

Non Resident Indian

(NRI) as per FEMA 1999 is an Indian citizen or Foreign National of Indian Origin resident
outside India for purposes of employment, carrying on business or vocation in circumstances
as would indicate an intention to stay outside India for an indefinite period. An individual
will also be considered NRI if his stay in India is less than 182 days during the preceding
financial year. To meet the specific needs of non-resident Indians related to their

remittances,
savings, earnings, investments and repatriation, the Government
o f I n d i a introduced in 1970 Non-Resident (External) Account Rules which are governed
by the Exchange Control Regulations.

"Non Resident Indian" (NRI)

Means an Indian citizen or a foreign citizen of Indian origin (excluding citizens

of Bangladesh and Pakistan) residing outsid e India. Students studying abroad are also
treated as NRIs. Indian citizen who stays abroad for an indefinite period on employment,
business or on any vocation is a Non-Resident. Diplomats posted abroad, persons posted in
UN Organizations and Officials deputed by PSU on temporary assignments are
also treated as Non-residents.

NRI Accounts
Are maintained by banks which hold authorized dealers' licenses from the

Reserve Bank of India

Some cooperative and commercial banks have also been spe cifically permitted to
maintain NRI accounts in rupees even though they are not authorized dealers. The
financial budget for 2007-08 extends NRI accounts to regional rural banks
(RRBs) as well. This would boost remittances from NRIs particularly in Bihar, Kerala,
Uttar Pradesh and Gujarat where a large number of persons from rural areas from these states
are employed overseas.

Banking Laws for NRIs

A l l o w f o r a c c o u n t s w i t h a u t h o r i z e d d e a l e r s t o b e maintained in Indian
rupees and in foreign currency.

Various accounts:-
 NRE A/c- non residential (external) rupee account.
 FCNR-B A/c- foreign currency non residential account.
 NRO A/c- nonresident ordinary account.
RFC A/c- resident foreign currency account .All NRIs can open such accounts, with the
exception of individuals residing in P a k i s t a n a n d B a n g l a d e s h , w h o r e q u i r e
s p e c i a l p e r m i s s i o n f r o m t h e R B I. J o i n t accounts of two or more non-residents and
nomination facility are permitted. While the FCNR (B) is a term deposit only, the
NRE and NRO accounts can be operated as either savings, current, recurring or
fixed deposit accounts. As for interest rates, FCNR (B) and NRE are subject to a cap,
and should not exceed the LIBOR/SWAP rates. In the case of NRO accounts, rates
are determined by the banks. The interest rates, currently at 3.5% apply to a period of 1 to
3 years. The total NRE/ FCNR deposits during 2006-2007, as per
RBI statistics, are USD37,751 million and are expected to grow with regional rural banks
also mopping up funds.

Re patriable Accounts
Funds that can be transferred or repatriated abroad are maintained in a

Non Resident External

Bank account. Generally, funds remitted from outside India are credited to this account.
Investments made from foreign funds can be repatriated overseas, and such
investments are maintained in a Re patriable Demat account.

Non-Resident (External) Rupee (NRE) Accounts

Both Principal and Interest can be repatriated/transferred out of India

Savings rate on NRE accounts is at par with savings rates in resident accounts

Term deposits can be made for 1 to 3 years.

The interest rates on (NRE) Term deposits cannot be higher than

LIBOR/SWAPr a t e s a s o n t h e l a s t w o r k i n g d a y o f t h e p r e v i o u s m o n t h
, f o r U S d o l l a r o f corresponding maturity plus 50 basis points. The interest rates
on three year deposits also apply in case the maturity period e x c e e d s t h r e e
ye a r s . T h e c h a n g e i n i n t e r e s t r a t e a l s o a p p l i e s t o N R E d e p o s i t s renewed
after their present maturity period.

FCNR (B) Accounts

As in NRE accounts, both principal and interest are re patriable.

Presently, deposits can be made in 6 specific foreign currencies (US Dollar,

Pound Sterling, EURO, Japanese Yen, Australian Dollar and Canadian Dollar).

Interest rate- Fixed or floating within the limits of LIBOR/SWAP rates for the
respective currency/corresponding term minus 25 basis points (except Japanese Yen).

The term of deposits can range between 1 to5 years.

NRO Accounts
Only current earnings are re patriable.

Savings NRO accounts are normally operated to credit rupee income fro
m shares, interest, rent from property in India, etc

In case of term deposits, banks are allowed to determine their own interest rates.

Banks can allow remittance up to USD 1 million per financial year for bona
fide purposes from balances in the NRO accounts once taxes are pa id out. This
limit includes the sale proceeds of immovable properties held by NRIs and PIOs.

Resident Foreign Currency (RFC) Account

NRIs and PIOs returning to India can maintain an RFC account with an authorized bank in
India to transfer funds from their NRE/FCNR (B) accounts. Proceeds of assets
held outside India before their return to India can be credited to the RFC
account. These funds are free from all restrictions as to their utilization
o r i n investment in any form outside India.

Non-Re patriable Accounts

Non-re patriable funds are those which cannot be taken out of India. These have to b e
maintained in a separate bank account i.e. a Non Resident Ordinary
B a n k account. Investments made from non-re patriable accounts cannot be repatriated
buth a v e t o b e m a i n t a i n e d i n a N o n -
R e p a t r i a b l e D e m a t a c c o u n t . M o n e y o n c e transferred from an NRE account to
an NRO account cannot be transferred back to an NRE account.

Non Resident Ordinary (NRO) Account

When a resident becomes an NRI, his existing savings account is designated as a Non-
resident Rupee (NRO) account.

The NRO accounts could be maintained in the nature of current, s

a v i n g , recurring or term deposits. NRIs can also open NRO accounts for deposit
their funds from local transactions.

The interest earned from NRO accounts is accountable to tax laws.

NRO accounts can be opened in the name of NRIs who have left India to take up
employment or business temporarily or permanently in a foreign country.

Funds from NRO accounts are not re patriable or transferred to NRE accounts
without the prior approval of
the RBI.H o w e v e r , N R I s , P IO s , F o r e i g n N a t i o n a l s , r e t i r e d e m p l o ye e s o r n o
n - r e s i d e n t widows of Indian citizens can remit, through the Authorized Dealer,
up to US Done million per calendar year from the NRO account or from income from sale
of assets in India

NRI INVESTMENT

NRI Investment in India

The Government of India has adopted a liberal policy, with respect to investment by NRIs
and OCBs in India, such investment are allowed, both, through the RBI route and
also through the Government route, i.e., through the Foreign Investment P r o m o t i o n
B o a r d ( F IP B ) N R Is a n d O C B s a r e p e r m i t t e d t o i n v e s t u p t o 1 0 0 % equity in
real estate development activity and civil aviation sectors. Investment, made by the
NRIs and OCBs, are fully re patriable, except in the case of real estate, which has a 3 year
lock-in period on original investment and, 16% cap on dividend repatriation.

Various investment opportunities in India available to NRIs

If one is NRI, the following investment opportunities are open to you:

 Maintenance of bank accounts in India.

 Investment in securities/shares and deposits of Indian firms/companies.
 Investment in mutual funds in India.

Investment Policy for Non-resident Indians (NRIs)

Recognizing the investment potential of the Non -resident Indians, a number
of steps are being taken by the government on an ongoing basis to attract from them in
Indian companies. Some of the investment schemes presently available to Non-resident
Indians (NRIs) include the facility to invest up to 100 percent equity with full benefits of
repatriation of capital invested and income accruing thereon in high priority industries
mentioned in the Annexure-III to the industrial policy 1991, 100 percent export oriented
units, sick units under revival, housing and real estate
development companies, etc,. NRIs/PIOs/OCBs are also permitted
t o m a k e p o r t f o l i o i n v e s t m e n t s t h r o u g h s e c o n d a r y m a r k e t s . In t e r m s o f t
h e r e l a x a t i o n s announced in 1998-99, investment limits for an individual NRI
has been
revisedu p w a r d s f r o m 1 % t o 5 % , a g g r e g a t e p o r t f o l i o i n v e s t m e n t l i m
i t s b y a l l N R I s increased from 55 to 10% of the issued and paid -up capital of
the company. The
aggregate investment limit would be separate and exclusive of FII portfo
l i o investment limits.

FOR NRI’S INVESTMENT

In order to help the tax-payers to plan their Income-tax affairs well in advance and to avoid
long drawn and expensive litigation, a scheme of Advance Ruli ngs has been
introduced under the Income-Tax Act, 1961. Authority for advance rulings has
been constituted. The tax-payer can obtain a binding ruling from the Authority on issues
which could arise in the determination of his tax liability. A non-resident or certain categories
of resident can obtain binding rulings from the Authority on any question of law or fact
arising out of any transaction/proposed transactions which are relevant for
the determination of this tax liability.

PORTFOLIO INVESTMENT

N R Is / O C B s a r e p e r m i t t e d t o m a k e p o r t f o l i o i n v e s t m e n t i n s h a r e s / d e b e n t
u r e s (convertible and non-convertible) of Indian companies, with or
without repatriation benefit provided the purchase is made through a stock exchange and also
through designated branch of an authorized dealer. NRIs/OCBs are required to
designate only one branch authorized by Reserve Bank for this purpose.

NRI’S INTEREST

NRIs invested only 5% of their investible assets in India with the balance
being parked overseas. A major reason for this was that the Indian banking
system was not a very preferred and trusted mode of investment for the NRI. The customer
was looking for convenience, speed, high yield on investment with manageable risks,
reasonable costs and quality services – A face of India he could associate with.
Competition was not only from India based banks, but also from local banks base overseas;
conventional and non conventional routes of money transfer.

FACILITATION AGENCIES

The main regulatory and facilitation agencies invol ved in the matters related
to NRIs/OCBs investment are Reserve Bank of India (RBI), Securities and Exchange Board
of India (SWBI), Authority for Advance Rulings (AAR), Secretariat for Industrial
Assistance (SIA), Ministry of Commerce and Industry; and Office of the Chief
Commissioner (Investments & NRIs).

RBI FORMS

NRIs/OCBs/PIOs do not have to seek specific permission for approved

activitiesc o v e r e d u n d e r ‘ G e n e r a l p e r m i s s i o n ’ s c h e m e s . T h e a c
t i v i t i e s r e l a t i n g t o NRIs/OCBs/PIOs not covered under those schemes
either require declaration
toR B I o r p e r m i s s i o n f r o m R B I. T h e a c t i v i t i e s r e q u i r i n g D e c l a r a t i o n / P e r m
i s s i o n along with corresponding forms are
as under;TS 1Transfer of Shares/Debentures by Non-
residents to ResidentsFNC1Permission to establish a branch office in India by an
Overseas Company establishing a Representative Office by Overseas Company for Liaison
Activities to open a Project/Site Office in India. IPI
Company/Individual (declaration) acquiring property
 CHAPTER- 2
COMPANY PROFILE
COMPANY PROFILE OF SBI BANK
State Bank of India is an India-based bank. In addition to banking, the Company, through its
subsidiaries, provides a range of financial services, which include life insurance, merchant
banking, mutual funds, credit card, factoring, security trading, pension fund management and
primary dealership in the money market. It operates in four business segments: Treasury,
Corporate/Wholesale Banking, Retail Banking and Other Banking Business. The Treasury
segment includes the investment portfolio and trading in foreign exchange contracts and
derivative contracts. The Corporate/Wholesale Banking segment comprises the lending
activities of Corporate Accounts Group, Mid Corporate Accounts Group and Stressed Assets
Management Group. The Retail Banking segment consists of branches in National Banking
Group, which primarily includes personal banking activities, including lending activities to
corporate customers having banking relations with branches in the National Banking Group.

INDUSTRY PROFLE OF STATE BANK OF INDIA (SBI)

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)

Products And Services

• 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 Media-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 SBI Vishay Yatra Foreign Travel Card

• Broking Services

• Gift Cheques

NRI BANKING

 Savings Account
 Deposits
 Accounts for Returning Indians

COMPANY PROFILE OF ICICI BANK

ICICI Bank Limited (the Bank) is a banking company engaged in providing a range of
banking and financial services, including commercial banking and treasury operations. It
operates under four segments: retail banking, wholesale banking, treasury and other banking.
The Bank’s subsidiaries include ICICI Prudential Life Insurance Company Limited, ICICI
Lombard General Insurance Company Limited, ICICI Trusteeship Services Limited, ICICI
Prudential Pension Funds, Management Company Limited, ICICI Home Finance Company
Limited and ICICI Securities Limited.

PRODUCT PROFILE

ICICI Bank is the one-stop shop for all your Forex needs.

Whether your destination is Paris, Mauritius or enchanting Rome, ICICI Bank offers the best
of both worlds. They buy and sell the following:

 ICICI Bank Travel Card

 Travelers Cheques
 Foreign Currency

INDUSTRY PROFILE OF ICICI BANK

ICICI Bank started as a wholly owned subsidiary of ICICI Limited, an Indian financial
institution, in 1994. Four years later, when the company offered ICICI Bank's shares to the
public, ICICI's shareholding was reduced to 46%. In the year 2000, ICICI Bank offered made
an equity offering in the form of ADRs on the New York Stock Exchange (NYSE), thereby
becoming the first Indian company and the first bank or financial institution from non-Japan
Asia to be listed on the NYSE. In the next year, it acquired the Bank of Madura Limited in an

all-stock amalgamation. Later in the year and the next fiscal year, the bank made secondary
market sales to institutional investors. With a change in the corporate structure and the
budding competition in the Indian Banking industry, the management of both ICICI and
ICICI Bank were of the opinion that a merger between the two entities would prove to be an
essential step. It was in 2001 that the Boards of Directors of ICICI and ICICI Bank
sanctioned the amalgamation of ICICI and two of its wholly-owned retail finance
subsidiaries, ICICI Personal Financial Services Limited and ICICI Capital Services Limited,
with ICICI Bank. In the following year, the merger was approved by its shareholders, the
High Court of Gujarat at Ahmadabad as well as the High Court of Judicature at Mumbai and
the Reserve Bank of India.

Present Scenario

ICICI Bank has its equity shares listed in India on Bombay Stock Exchange and the National
Stock Exchange of India Limited. Overseas, its American Depositary Receipts (ADRs) are
listed on the New York Stock Exchange (NYSE). As of December 31, 2008, ICICI is India's
second-largest bank, boasting an asset value of Rs. 3,744.10 billion and profit after tax Rs.
30.14 billion, for the nine months, that ended on December 31, 2008.

Branches & ATMs

ICICI Bank has a wide network both in Indian and abroad. In India alone, the bank has 1,420
branches and about 4,644 ATMs. Talking about foreign countries, ICICI Bank has made its
presence felt in 18 countries - 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. The Bank
proudly holds its subsidiaries in the United Kingdom, Russia and Canada out of which, the
UK subsidiary has established branches in Belgium and Germany.

PRODUCT PROFILE

Personal Banking

• Deposits

• Loans

• Cards

• Investments

• Insurance

• Demat Services

• Wealth Management

NRI Banking

• Money Transfer

• Bank Accounts

• Investments

• Property Solutions

• Insurance

• Loans

Business Banking

• Corporate Net Banking

• Cash Management

• Trade Services

• FX Online

• SME Services

• Online Taxes

• Custodial Services
 CHAPTER-3
RESEARCH METHODOLOGY
Meaning of research
Research in common parlance refers to a search of knowledge. One can also define research
as a scientific & systematic search for pertinent information on a specific topic. In fact,
research is an art of scientific investigation. The advanced learner dictionary of current nglish
lays down the meaning of research as a’ careful investigation as inquiry especially through
search for new facts in any branch of knowledge.’ Redman & Mory define it as a ‘systematic
effort to gain knowledge’.

RESEARCH DESIGN

A Research design is a framework or a blueprint for conducting the research project. It

specifies the details of the procedure necessary for obtaining the information needed to
structure or to solve the research problem.

The type of research design used by me is Qualitative research here I focused on the
understanding & expectations of the respondents. A major chunk of my research was based
on the conclusive research design.

DATA COLLECTION TECHNIQUES

There are mainly two broad classification of the data collection technique that are as follows:

Secondary source: the data in the secondary source is already published and is in the form of
government publication, census, personnel record, and client history and service records. My
source of data collection is also through the secondary data available from the site of sbi &
icici banks.

Primary data: the data which is not been published at all and is used by the researcher the
very first time is known as the primary data. The major part of my project report is based on
the primary data which I have collected through the questionnaires & personal interviews
from the respondents.

Sampling technique: I took the technique of random sampling as well as non random
sampling technique. In random sampling I did not asked the respondents that in which bank
do you have an account but in non random sampling I asked them that do they use NRI
banking and then I made them to fill the questionnaire.

Sample size: 100

RESEARCH OBJECTIVE

This Study will help us to understand the consumer’s satisfaction about NRI banking services
and products. This study will help banks to understand, how a consumer selects, organizes
and interprets the Quality of service and product offered by banks. The market is more aware
and realistic about investment and returns from financial products. In this background this
study tries to analyze the customer satisfaction towards NRI banking services in SBI and
ICICI Bank in particular.

SCOPE OF THE STUDY:

This study is limited to the consumers with in New Delhi city. The study will be able to
reveal the preferences, needs, satisfaction of the customers regarding the NRI banking
services, It also help banks to know whether the existing products or services they are
offering are really satisfying the customers’ needs.

OBJECTIVE OF THE STUDY:

 To understand the major attributes of customer satisfaction.

 To determine the main factors influencing the level of customer satisfaction in ICICI
and SBI Bank.
 To assess the level of customer satisfaction on the quality of service provided by the
SBI and ICICI Bank.
 To study consumer perception about the SBI and ICICI.
 CHAPTER-4
DATA ANAYYSIS AND INTERPRETATION
 1. Which age group invests the money in NRI banking scheme?

AGE INVESTORS
>=30 3%
31-35 12%
36-40 35%
41-45 22%
46-50 18%
>50 10%

INTERPRETATION

Here, it is been found that most of the investors i.e,35% of the investors who invest in NRI
services lies in between the age group of 36-40, they are more reluctant as well as
experienced in this field of NRI services. Then the Second highest age group lies in between
the age group of 41-45 (22%), they are also aware of the benefits in investing in NRI
services. The least interested group is the Youth Generations.
2. Analysis of investor’s qualification.

QUALIFICATION INVESTORS
Under graduates 12.5%
Graduates 71%
Post graduation 16.67%
Other 2%

INTERPRETATION

Out of my survey of 100 people, 71% of the investors are well qualified (i.e. they are either
graduates or post-graduates and 16.67% are Under Graduates and Others, around 12.5%,
which may include persons who have passed their 10th standard or 12th standard invests in
NRI services.
3. Analysis of investors’ Occupation

PROFFESSION INVESTORS
Business 25%
Government 24%
Private 46%
Other 5%

INTERPRETATION

Here it is amazed to see that around 46% of the investment is been invested by the persons
working in Private sectors, according to them investing in NRI services is more safer as well
as more gainer. Then we find that the businessmen of around 25%gives more preference in
investing in NRI services, they think that investing in NRI services is better than investing in
shares as well as Post office. Next we see that the persons working in Government sectors of
around 24% only invests in NRI services.
4. Innovative Banking Services

SERVICES RESPONSE
ICICI 84%
SBI 16%

Banks

16%

84%

INTERPRETATION

On being asked about the innovative nature of banking services, 84 % of the customers of
ICICI bank said that the banking schemes offered by ICICI bank are very much innovative.

The SBI customer were asked about the innovative nature of SBI services, around 16 %
customers out of 100 said that the schemes are very much innovative.
5. Dynamic Services

SERVICES RESPONSE
ICICI 72%
SBI 28%

Banks

28%
72%

INTERPRETATION

1. In terms of competitiveness of banking schemes ICICI bank has only 72% customer saying
its services are very much competitive.

2. SBI customers are negative about the competitiveness of banking schemes of SBI. Around
28% customers feel that the services are very much competitive whereas majority of
customers i.e. 50% have the opinion that the schemes offered by SBI are very less
competitive.
6. Service Satisfaction

SATISFACTION RESPONSE
ICICI 76%
SBI 24%

Banks

24%

76%

INTERPRETATION

1. SBI customers are also satisfied with the banking services offered by SBI. The customers
who are satisfied with ICICI bank services stand at 76%.
7. Banking Services

SERVICES RESPONSE
ICICI 83%
SBI 17%

Banks

17%

83%

INTERPRETATION

1. It was obvious that ICICI bank customers are more satisfied with 83% out of total 100
respondents when compared with SBI bank in terms of satisfaction.
8. Communication Satisfaction

SATISFACTION RESPONSE
ICICI 31%
SBI 69%

Banks

31%

69%

INTERPRETATION

1. When ICICI bank and SBI are compared on satisfaction with the communication from banks it
is found that SBI is more prompt and efficient in communication with the customers.

2. It is found that 31 % customers of ICICI bank are always satisfied with the way ICICI bank
markets it banking services.

3. It is found that 69% customers of SBI bank are always satisfied with the way sbi bank markets
it banking services.
9. What you say which provides better returns?

RETURNS RESPONSE
ICICI 68%
SBI 32%

70
60
50
40
RETURN
30
20
10
0
ICICI SBI

INTERPRETATION

According to collected data 68%investors thinks that SBI provides better returns where as 32%
to think that ICICI provides better returns.
10. Would you like to exchange your investment with one another between SBI&ICICI?

Exchange Response
Yes 15%
No 85%

90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
YES NO

INTERPRETATION

15 investors said that they would like to change their investment with each another between SBI
& ICICI. But 85 investors say that they are ok with their banks and they wouldn’t like to
exchange their investment.
 CHAPTER-5
FINDING SUGGESTION AND CONCLUSION
 FINDING

Through this Project the results that was derived are-

 People who lie under the age group of 36-40 have more experience and are more
interested in investing in NRI banking services
 There was a lot of lack of awareness or ignorance, that’s why out of 100 people, 40
people have invested in NRI services and 60 people is unaware of investing in NRI
services.
 Generally, People employed in Private sectors and Businessman is more likely to invest
in NRI services, than other people working in other professions.
 ICICI bank offers innovative services to customers
 Customers of ICICI bank are satisfied with their dynamic services offered by ICICI bank.
 ICICI bank Provide the better services of satisfaction.
 ICICI bank provides the better banking services.
 Investors think that SBI provides better communication services.
 Investors think that ICICI provides better returns than SBI.
 Investors think that they cannot be exchange your investment in another banks.
 SUGGESTIONSS
 The staff of SBI and ICICI bank has to be courteous and polite.
 The banks required hiring right kind of people, with adequate knowledge of
banking especially at banks call centers.
 Training programmers should be devised for all staff including call centre and
Staff of Direct Sales Associates or Associates of these banks. More importance
should be given to upgrade product knowledge and communication skills in such
training programmers’.
 There is a need for banking staff to have training in the areas of technology and
interactive skills.
 The marketing personnel selected by direct sales associates of ICICI bank and
SBI should be more qualified, in terms of education, product knowledge,
communication skills etc
 In the bank the customer ahs his first introduction with bank at front desk. The
person who is presenting the services to the customers is identified with the
services offered so the banker or the professional who is offering the banking
services to the customers should be good in his appearance, his attitude which
should be appealing to the customers. Proper dress code, perfect surroundings,
attractive interiors, ambience and courteous staff at the counters are must to
attract the customers. The personnel at front desk also need to be developed to
deliver service quality.
 The bank should attract best talent and retain that talent by right kind of policies
in respect of salary, incentives, etc
 Develop service oriented internal processes
 Include employees in the banks vision.
 Right kind of reward to be provided to strong service provider.
 CONCLUSIONS

The study concludes to be valuable to ICICI bank and SBI as it is based on the opinion of
customers and bank employees (marketing staff). It is useful for other private sector and
Public sector banks also in formulating their policies regarding launch of new banking
product, in order to reach the level of success achieved by these two banks. It also point
out reasons for dissatisfaction among bank customers and provide meaningful solution to
their problems. The study conducted will help the private Sector Banks and Public Sector
Banks in addressing the marketing problems and difficulties faced by these banks while
marketing their services to customers. The study also helps in solving the problems faced
by the customers and the effective implementation of marketing strategies of private
sector and Public sector banks.
 CHAPTER-6
BIBLIOGRAPHY
 BIBLIOGRAPHY

MAGAZINES
Business world
Business today

NEWSPAPER
Economic times
Times of India

WEBSITES
www.icicibank.com

http://www.sbibank.com/ www.sbibank.com www.google.com

KNOWLEDGE THROUGH T.V.:-

Watched Ad‘s of Both the Banks, they helped us in Knowing about the banks & raised
our interest in the topic. This Ad‘s were the first source of information about the banks.
They helped in choosing the topic.

TELEVISION
NDTV PROFIT
ZEE BUSINESS
TIMES NOW
IBN7
CHAPTER-7
ANNEXURE
 QUESTIONNAIRE

Sample Questionnaire
Name: ................... Age: …………….. Mob.
……………
Ques1. Which age groups invest the money in NRI banking scheme?
>=30 (b) 31-35 (c) 36-40 (d) 46-5

Ques2. What is the Qualification?

(a) Under-graduation (b) Graduation (c) Post Graduation (d) Others

Ques3. What is your Occupation?

(a) Government (b) Private (c) Business (d) Others

Ques4. Off which bank provide better innovative banking services?

(a) ICICI (b) SBI

Ques5. What you say which provides better dynamic services?

(a) ICICI (b) SBI

Ques6. What you say which bank provides better services of satisfaction?
(a) SBI (b) ICICI

Ques7. What you say which banking services are better?

(a) ICICI (b) SBI

Ques8. What you say which bank provides better communication services?
(a) SBI (b) ICICI

9. What you say which provides better returns?

(a) ICICI (b) SBI

10. Would you like to exchange your investment with one another between SBI &
ICICI?
(a) Yes (b) No