final project of sbi n icici

7/29/2019 Final Project of sbi n icici

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A PROJECT REPORT

ON

A COMPARATIVE STUDY OF BANKING

SERVICES OF SBI AND ICICI


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CONTENTS

01 Introduction to the banks

02 Objective of the study

03 Methodology

04 Observation and Findings

05 Conclusion

06 Limitations

07 Bibliography


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INTRODUCTION TO

BANKS


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Introduction of SBI (State bank of India):

The State Bank of India, the countrys oldest Bank and a premier in terms of

balance sheet size, number of branches, market capitalization and profits is today

going through a momentous phase of Change and Transformation the two

hundred year old Public sector behemoth is today stirring out of its Public Sector

legacy and moving with an ability to give the Private and Foreign Banks a run for

their money. The origin of the state bank of India goes back to the first decade of

the nineteenth century with the establishment of the Bank of Calcutta in Calcutta

on 2 June 1806.

The bank is operating into many businesses with strategic tie ups Pension

Funds, General Insurance, Custodial Services, Private Equity, Mobile Banking,

Point of Sale Merchant Acquisition, Advisory Services, structured products etc

each one of these initiatives having a huge potential for growth.

It is also focusing at the top end of the market, on whole sale banking

capabilities to provide Indias growing mid / large Corporate with a complete array

of products and services. It is consolidating its global treasury operations and

entering into structured products and derivative instruments. Today, the Bank is the

largest provider of infrastructure debt and the largest arranger of external

commercial borrowings in the country. It is the only Indian bank to feature in the

Fortune 500 list.

SBI have about 8500 of its own 10000 branches and another 5100 branches

of its Associate Banks, today it offers the largest banking network to the Indian


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customer. The Bank is also in the process of providing complete payment solution

to its clientele with its over8500 ATMs.

It presently has 52 foreign offices in 34 countries across the globe. It has

also 5 Subsidiaries in IndiaSBI Capital Markets- SBICAP Securities, SBI DFHI,

SBI Factors and Commercial Services Pvt Ltd (SBI FACTORS), SBI Funds

Management Pvt Ltd (SBI FUNDS) and SBI Cards & Payments Services Pvt. Ltd.

(SBICPSL) - forming a formidable group in the Indian Banking scenario. It is in

the process of raising capital for its growth and also consolidating its various

holdings

Introduction of ICICI:

ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indianfinancial 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.

ICICI Bank is India's second-largest bank with total assets of Rs. 3,997.95

billion at March 31, 2008. 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


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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).


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INTODUCTION TO THE TOPIC

Personal Banking:-

Personal banking refers to banking in which a person can dotransaction and deposits with the banks for their personal expense.

OBJECTIVE OF THE STUDY

My objective was to find out the banking services of SBI and ICICI to find

out the advantage of SBI over ICICI and vice-versa.

For this I have to find various scheme provided by SBI and ICICI.

METHEDOLOGY

Primary Data is taken from Mr. Amit Yadav (manager in SBI) ManojKumar(staff in ICICI )

Secondary data is taken by internet


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the State Bank of India, which originated in the Bank of Calcutta in June 1806,

which almost immediately became the Bank of Bengal. This was one of the three

presidency banks, the other two being the Bank of Bombay and the Bank of

Madras, all three of which were established under charters from the British East

India Company. For many years the Presidency banks acted as quasi-central banks,

as did their successors. The three banks merged in 1925 to form the Imperial Bank

of India, which, upon India's independence, became the State Bank of India.

Indian merchants in Calcutta established the Union Bank in 1839, but itfailed in 1848 as a consequence of the economic crisis of 1848-49. The Allahabad

Bank, established in 1865 and still functioning today, is the oldest Joint Stock bank

in India. When the American Civil Warstopped the supply of cotton to Lancashire

from the Confederate States, promoters opened banks to finance trading in Indian

cotton. With large exposure to speculative ventures, most of the banks opened in

India during that period failed. The depositors lost money and lost interest in

keeping deposits with banks. Subsequently, banking in India remained the

exclusive domain of Europeans for next several decades until the beginning of the

20th century.

Foreign banks too started to arrive, particularly in Calcutta, in the 1860s.

The Comptoire d'Escompte de Paris opened a branch in Calcutta in 1860, and

another in Bombay in 1862; branches in Madras and Pondicherry, then a Frenchcolony, followed. Calcutta was the most active trading port in India, mainly due to

the trade of the British Empire, and so became a banking center.
http://en.wikipedia.org/wiki/Bank_of_Bengalhttp://en.wikipedia.org/wiki/Bank_of_Bombayhttp://en.wikipedia.org/wiki/Bank_of_Madrashttp://en.wikipedia.org/wiki/Bank_of_Madrashttp://en.wikipedia.org/wiki/Imperial_Bank_of_Indiahttp://en.wikipedia.org/wiki/Imperial_Bank_of_Indiahttp://en.wikipedia.org/wiki/Allahabad_Bankhttp://en.wikipedia.org/wiki/Allahabad_Bankhttp://en.wikipedia.org/wiki/American_Civil_Warhttp://en.wikipedia.org/wiki/Lancashirehttp://en.wikipedia.org/wiki/Confederate_Stateshttp://en.wikipedia.org/wiki/Kolkatahttp://en.wikipedia.org/w/index.php?title=Comptoire_d%27Escompte_de_Paris&action=edit&redlink=1http://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Chennaihttp://en.wikipedia.org/wiki/Pondicheryhttp://en.wikipedia.org/wiki/British_Rajhttp://en.wikipedia.org/wiki/British_Rajhttp://en.wikipedia.org/wiki/Pondicheryhttp://en.wikipedia.org/wiki/Chennaihttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/w/index.php?title=Comptoire_d%27Escompte_de_Paris&action=edit&redlink=1http://en.wikipedia.org/wiki/Kolkatahttp://en.wikipedia.org/wiki/Confederate_Stateshttp://en.wikipedia.org/wiki/Lancashirehttp://en.wikipedia.org/wiki/American_Civil_Warhttp://en.wikipedia.org/wiki/Allahabad_Bankhttp://en.wikipedia.org/wiki/Allahabad_Bankhttp://en.wikipedia.org/wiki/Imperial_Bank_of_Indiahttp://en.wikipedia.org/wiki/Imperial_Bank_of_Indiahttp://en.wikipedia.org/wiki/Bank_of_Madrashttp://en.wikipedia.org/wiki/Bank_of_Madrashttp://en.wikipedia.org/wiki/Bank_of_Bombayhttp://en.wikipedia.org/wiki/Bank_of_Bengal


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Around the turn of the 20th Century, the Indian economy was passing

through a relative period of stability. Around five decades had elapsed since the

Indian Mutiny, and the social, industrial and other infrastructure had improved.

Indians had established small banks, most of which served particular ethnic and

religious communities.

The presidency banks dominated banking in India but there were also some

exchange banks and a number of Indian joint stockbanks. All these banks operated

in different segments of the economy. The exchange banks, mostly owned byEuropeans, concentrated on financing foreign trade. Indian joint stock banks were

generally under capitalized and lacked the experience and maturity to compete

with the presidency and exchange banks. This segmentation let Lord Curzon to

observe, "In respect of banking it seems we are behind the times. We are like

some old fashioned sailing ship, divided by solid wooden bulkheads into

separate and cumbersome compartments."

By the 1900s, the market expanded with the establishment of banks such as

Punjab National Bank, in 1895 in Lahore and Bank of India, in 1906, in Mumbai -

both of which were founded under private ownership. Punjab National Bank is the

first Swadeshi Bank founded by the leaders like Lala Lajpat Rai, Sardar Dyal

Singh Majithia. The Swadeshi movement in particular inspired local businessmen

and political figures to found banks of and for the Indian community. A number ofbanks established then have survived to the present such as Bank of India,

Corporation Bank, Indian Bank,Bank of Baroda,Canara Bankand Central Bank

of India.The fervour of Swadeshi movement lead to establishing of many private

banks in Dakshina Kannada and Udupi district which were unified earlier and
http://en.wikipedia.org/wiki/Indian_rebellion_of_1857http://en.wikipedia.org/wiki/Joint_stock_companyhttp://en.wikipedia.org/wiki/Punjab_National_Bankhttp://en.wikipedia.org/wiki/Bank_of_Indiahttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Swadeshihttp://en.wikipedia.org/wiki/Bank_of_Indiahttp://en.wikipedia.org/wiki/Corporation_Bankhttp://en.wikipedia.org/wiki/Indian_Bankhttp://en.wikipedia.org/wiki/Bank_of_Barodahttp://en.wikipedia.org/wiki/Canara_Bankhttp://en.wikipedia.org/wiki/Central_Bank_of_Indiahttp://en.wikipedia.org/wiki/Central_Bank_of_Indiahttp://en.wikipedia.org/wiki/Dakshina_Kannadahttp://en.wikipedia.org/wiki/Udupi_districthttp://en.wikipedia.org/wiki/Udupi_districthttp://en.wikipedia.org/wiki/Dakshina_Kannadahttp://en.wikipedia.org/wiki/Central_Bank_of_Indiahttp://en.wikipedia.org/wiki/Central_Bank_of_Indiahttp://en.wikipedia.org/wiki/Canara_Bankhttp://en.wikipedia.org/wiki/Bank_of_Barodahttp://en.wikipedia.org/wiki/Indian_Bankhttp://en.wikipedia.org/wiki/Corporation_Bankhttp://en.wikipedia.org/wiki/Bank_of_Indiahttp://en.wikipedia.org/wiki/Swadeshihttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Bank_of_Indiahttp://en.wikipedia.org/wiki/Punjab_National_Bankhttp://en.wikipedia.org/wiki/Joint_stock_companyhttp://en.wikipedia.org/wiki/Indian_rebellion_of_1857


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known by the name South Canara ( South Kanara ) district.Four nationalised

banks started in this district and also a leading private sector bank. Hence

undivided Dakshina Kannada district is known as "Cradle of Indian Banking".

From World War I to Independence:

The period during the First World War(1914-1918) through the end of the

Second World War (1939-1945), and two years thereafter until the independence

of India were challenging for Indian banking. The years of the First World War

were turbulent, and it took its toll with banks simply collapsing despite the Indian

economy gaining indirect boost due to war-related economic activities. At least 94

banks in India failed between 1913 and 1918 as indicated in the following table:

Years Number of banks

that failed

Authorized capital

(Rs. Lakhs)

Paid-up Capital

(Rs. Lakhs)

1913 12 274 35

1914 42 710 109

1915 11 56 5
http://en.wikipedia.org/wiki/First_World_Warhttp://en.wikipedia.org/wiki/Second_World_Warhttp://en.wikipedia.org/wiki/Indian_independence_movementhttp://en.wikipedia.org/wiki/Economy_of_Indiahttp://en.wikipedia.org/wiki/Economy_of_Indiahttp://en.wikipedia.org/wiki/Economy_of_Indiahttp://en.wikipedia.org/wiki/Economy_of_Indiahttp://en.wikipedia.org/wiki/Indian_independence_movementhttp://en.wikipedia.org/wiki/Second_World_Warhttp://en.wikipedia.org/wiki/First_World_War


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1916 13 231 4

1917 9 76 25

1918 7 209 1

Post-independence:

The partition of India in 1947 adversely impacted the economies of Punjab and

West Bengal, paralyzing banking activities for months. India's independence

marked the end of a regime of the Laissez-faire for the Indian banking. The

Government of India initiated measures to play an active role in the economic life

of the nation, and the Industrial Policy Resolution adopted by the government in

1948 envisaged a mixed economy. This resulted into greater involvement of the

state in different segments of the economy including banking and finance. The

major steps to regulate banking included:

In 1948, the Reserve Bank of India, India's central banking authority, wasnationalized, and it became an institution owned by the Government of

India.

In 1949, the Banking Regulation Act was enacted which empowered theReserve Bank of India (RBI) "to regulate, control, and inspect the banks in

India."
http://en.wikipedia.org/wiki/Partition_of_Indiahttp://en.wikipedia.org/wiki/Punjab,_Indiahttp://en.wikipedia.org/wiki/West_Bengalhttp://en.wikipedia.org/wiki/Indian_independence_movementhttp://en.wikipedia.org/wiki/Laissez-fairehttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Mixed_economyhttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Mixed_economyhttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Laissez-fairehttp://en.wikipedia.org/wiki/Indian_independence_movementhttp://en.wikipedia.org/wiki/West_Bengalhttp://en.wikipedia.org/wiki/Punjab,_Indiahttp://en.wikipedia.org/wiki/Partition_of_India


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The Banking Regulation Act also provided that no new bank or branch of anexisting bank could be opened without a license from the RBI, and no two

banks could have common directors.

However, despite these provisions, control and regulations, banks in India except

the State Bank of India, continued to be owned and operated by private persons.

This changed with the nationalization of major banks in India on 19 July, 1969.

Nationalization:

By the 1960s, the Indian banking industry has become an important tool to

facilitate the development of the Indian economy. At the same time, it has emerged

as a large employer, and a debate has ensued about the possibility to nationalize the

banking industry. Indira Gandhi, the-then Prime Minister of India expressed the

intention of the GOI in the annual conference of the All India Congress Meeting in

a paper entitled "Stray thoughts on Bank Nationalization."The paper was received

with positive enthusiasm. Thereafter, her move was swift and sudden, and the GOI

issued an ordinance and nationalized the 14 largest commercial banks with effect

from the midnight of July 19, 1969. Jayaprakash Narayan, a national leader of

India, described the step as a "masterstroke of political sagacity." Within two

weeks of the issue of the ordinance, the Parliamentpassed the Banking Companies

(Acquisition and Transfer of Undertaking) Bill, and it received the presidential

approval on 9 August, 1969.
http://en.wikipedia.org/wiki/State_Bank_of_Indiahttp://en.wikipedia.org/wiki/Indian_economyhttp://en.wikipedia.org/wiki/Indira_Gandhihttp://en.wikipedia.org/wiki/Prime_Minister_of_Indiahttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Nationalisationhttp://en.wikipedia.org/wiki/July_19http://en.wikipedia.org/wiki/1969http://en.wikipedia.org/wiki/Jayaprakash_Narayanhttp://en.wikipedia.org/wiki/Parliament_of_Indiahttp://en.wikipedia.org/wiki/President_of_Indiahttp://en.wikipedia.org/wiki/President_of_Indiahttp://en.wikipedia.org/wiki/Parliament_of_Indiahttp://en.wikipedia.org/wiki/Jayaprakash_Narayanhttp://en.wikipedia.org/wiki/1969http://en.wikipedia.org/wiki/July_19http://en.wikipedia.org/wiki/Nationalisationhttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Prime_Minister_of_Indiahttp://en.wikipedia.org/wiki/Indira_Gandhihttp://en.wikipedia.org/wiki/Indian_economyhttp://en.wikipedia.org/wiki/State_Bank_of_India


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A second dose of nationalization of 6 more commercial banks followed in

1980. The stated reason for the nationalization was to give the government more

control of credit delivery. With the second dose of nationalization, the GOI

controlled around 91% of the banking business of India. Later on, in the year 1993,

the government merged New Bank of India with Punjab National Bank. It was the

only merger between nationalized banks and resulted in the reduction of the

number of nationalized banks from 20 to 19. After this, until the 1990s, the

nationalized banks grew at a pace of around 4%, closer to the average growth rate

of the Indian economy.

The nationalized banks were credited by some, including Home minister P.

Chidambaram, to have helped the Indian economy withstand the global financial

crisis of 2007-2009.

Liberalization:

In the early 1990s, the then Narsimha Rao government embarked on a policy

of liberalization, licensing a small number of private banks. These came to be

known asNew Generation tech-savvy banks, and included Global Trust Bank (the

first of such new generation banks to be set up), which later amalgamated with

Oriental Bank of Commerce, UTI Bank(now re-named as Axis Bank), ICICI Bank

and HDFC Bank. This move, along with the rapid growth in the economy of India,

revitalized the banking sector in India, which has seen rapid growth with strong

contribution from all the three sectors of banks, namely, government banks, private

banks and foreign banks.
http://en.wikipedia.org/w/index.php?title=New_Bank_of_India&action=edit&redlink=1http://en.wikipedia.org/wiki/Punjab_National_Bankhttp://en.wikipedia.org/wiki/Home_Minister_of_Indiahttp://en.wikipedia.org/wiki/P._Chidambaramhttp://en.wikipedia.org/wiki/P._Chidambaramhttp://en.wikipedia.org/wiki/Economy_of_Indiahttp://en.wikipedia.org/wiki/Financial_crisis_of_2007-2009http://en.wikipedia.org/wiki/Financial_crisis_of_2007-2009http://en.wikipedia.org/wiki/Narsimha_Raohttp://en.wikipedia.org/wiki/Liberalizationhttp://en.wikipedia.org/wiki/UTI_Bankhttp://en.wikipedia.org/wiki/Axis_Bankhttp://en.wikipedia.org/wiki/ICICI_Bankhttp://en.wikipedia.org/wiki/HDFC_Bankhttp://en.wikipedia.org/wiki/Economy_of_Indiahttp://en.wikipedia.org/wiki/Economy_of_Indiahttp://en.wikipedia.org/wiki/HDFC_Bankhttp://en.wikipedia.org/wiki/ICICI_Bankhttp://en.wikipedia.org/wiki/Axis_Bankhttp://en.wikipedia.org/wiki/UTI_Bankhttp://en.wikipedia.org/wiki/Liberalizationhttp://en.wikipedia.org/wiki/Narsimha_Raohttp://en.wikipedia.org/wiki/Financial_crisis_of_2007-2009http://en.wikipedia.org/wiki/Financial_crisis_of_2007-2009http://en.wikipedia.org/wiki/Economy_of_Indiahttp://en.wikipedia.org/wiki/P._Chidambaramhttp://en.wikipedia.org/wiki/P._Chidambaramhttp://en.wikipedia.org/wiki/Home_Minister_of_Indiahttp://en.wikipedia.org/wiki/Punjab_National_Bankhttp://en.wikipedia.org/w/index.php?title=New_Bank_of_India&action=edit&redlink=1


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The next stage for the Indian banking has been setup with the proposed

relaxation in the norms for Foreign Direct Investment, where all Foreign Investors

in banks may be given voting rights which could exceed the present cap of 10%,at

present it has gone up to 49% with some restrictions.

The new policy shook the Banking sector in India completely. Bankers, till

this time, were used to the 4-6-4 method (Borrow at 4%;Lend at 6%;Go home at 4)

of functioning. The new wave ushered in a modern outlook and tech-savvy

methods of working for traditional banks.All this led to the retail boom in India.People not just demanded more from their banks but also received more.

Currently (2007), banking in India is generally fairly mature in terms of

supply, product range and reach-even though reach in rural India still remains a

challenge for the private sector and foreign banks. In terms of quality of assets and

capital adequacy, Indian banks are considered to have clean, strong and transparent

balance sheets relative to other banks in comparable economies in its region. The

Reserve Bank of India is an autonomous body, with minimal pressure from the

government. The stated policy of the Bank on the Indian Rupee is to manage

volatility but without any fixed exchange rate-and this has mostly been true.

With the growth in the Indian economy expected to be strong for quite some

time-especially in its services sector-the demand for banking services, especially

retail banking, mortgages and investment services are expected to be strong. One

may also expect M&As, takeovers, and asset sales.

In March 2006, the Reserve Bank of India allowed Warburg Pincus to

increase its stake in Kotak Mahindra Bank (a private sector bank) to 10%. This is
http://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Retail_bankinghttp://en.wikipedia.org/wiki/Retail_bankinghttp://en.wikipedia.org/wiki/India


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the first time an investor has been allowed to hold more than 5% in a private sector

bank since the RBI announced norms in 2005 that any stake exceeding 5% in the

private sector banks would need to be vetted by them.

In recent years critics have charged that the non-government owned banks

are too aggresive in their loan recovery efforts in connection with housing, vehicle

and personal loans. There are press reports that the banks' loan recovery efforts

have driven defaulting borrowers to suicide.

Company Profile of SBI:

State Bank of India (SBI) is India's largest commercial bank. SBI has

a vast domestic network of over 9000 branches (approximately 14% of all bank

branches) and commands one-fifth of deposits and loans of all scheduled

commercial banks in India.

The State Bank Group includes a network of eight banking subsidiaries and several

non-banking subsidiaries offering merchant banking services, fund management,

factoring services, primary dealership in government securities, credit cards and

insurance.


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The eight banking subsidiaries are:

1-State Bank of Bikaner and Jaipur (SBBJ)2-State Bank of Hyderabad (SBH)

3-State Bank of India (SBI)

4-State Bank of Indore (SBIR)

5-State Bank of Mysore (SBM)

6-State Bank of Patiala (SBP)

7-State Bank of Saurashtra (SBS)

8-State Bank of Travancore (SBT)

The origins of State Bank of India date back to 1806 when the Bank

of Calcutta (later called the Bank of Bengal) was established. In 1921, the Bank of

Bengal and two other Presidency banks (Bank of Madras and Bank of Bombay)

were amalgamated to form the Imperial Bank of India. In 1955, the controlling

interest in the Imperial Bank of India was acquired by the Reserve Bank of India

and the State Bank of India (SBI) came into existence by an act of Parliament.

Today, State Bank of India (SBI) has spread its arms around the world

and has a network of branches spanning all time zones. SBI's International Banking

Group delivers the full range of cross-border finance solutions through its four

wings - the Domestic division, the Foreign Offices division, the Foreign

Department and the International Services division.


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State Bank of India (SBI) (LSE: SBID) is the largest bankin India. If one measures

by the number of branch offices and employees, SBI is the largest bank in the

world. Established in 1806 as Bank of Calcutta, it is the oldest commercial bank in

the Indian subcontinent. SBI provides various domestic, international and NRI

products and services, through its vast network in India and overseas. With an asset

base of $126 billion and its reach, it is a regional banking behemoth. The

government nationalized the bank in 1955, with the Reserve Bank of India taking a

60% ownership stake. In recent years the bank has focused on three

priorities, 1), reducing its huge staff through Golden handshake schemes known as

the Voluntary Retirement Scheme, which saw many of its best and brightest defect

to the private sector, 2), computerizing its operations and 3), changing the attitude

of its employees (through an ambitious programme aptly named 'Parivartan' which

means change) as a large number of employees are very rude to customers.

Roots:

The State Bank of India traces its roots to the first decade of 19th

century, when the Bank of Calcutta, later renamed the Bank of Bengal, was

established on 2 June 1806. The government amalgamated Bank of

Bengal and two other Presidency banks, namely, the Bank of Bombay

(incorporated on 15 April 1840) and the Bank of Madras on 27 January 1921, and

named the reorganized banking entity the Imperial Bank of India. All these

Presidency banks had been incorporated as joint stock companies, and were the

result of the royal charters. The Imperial Bank of India continued as a joint stock

company. Until the establishment of a central bank in India the Imperial Bank and
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its early predecessors served as India's central bank, at least in terms of issuing the

currency. The State Bank of India Act 1955, enacted by the Parliament of India,

authorized the Reserve Bank of India, which is the central banking organization of

India, to acquire a controlling interest in the Imperial Bank of India, which was

renamed the State Bank of India on 30 April 1955.

Timeline:

June 2, 1806: The Bank of Calcutta established.

January 2, 1809: This became the Bank of Bengal.

April 15, 1840: Bank of Bombay established.

July 1, 1843: Bank of Madras established.

1861: Paper Currency Act passed.

January 27, 1921: all three banks amalgamated to form Imperial Bank of

India.

July 1, 1955: State Bank of India formed; becomes the first

Indian bank to be nationalized.

1959: State Bank of India (Subsidiary Banks) Act passed,

enabling the State Bank of India to take over eight former State-

associated banks as its subsidiaries.

1980s When Bank of Cochin in Kerala faced a financial crisis,

the government merged it with State Bank of India.

June 29,2007: The Government of India today acquired the entire Reserve

Bank of India (RBI) shareholding in State Bank of India (SBI),

consisting of over 314 million equity shares at a total amount of over 355

billion rupees.
http://www.bookrags.com/Parliament_of_Indiahttp://www.bookrags.com/Reserve_Bank_of_Indiahttp://www.bookrags.com/Central_bankhttp://www.bookrags.com/30_Aprilhttp://www.bookrags.com/1955http://www.bookrags.com/June_2http://www.bookrags.com/1806http://www.bookrags.com/Bank_of_Calcuttahttp://www.bookrags.com/January_2http://www.bookrags.com/1809http://www.bookrags.com/Bank_of_Bengalhttp://www.bookrags.com/April_15http://www.bookrags.com/1840http://www.bookrags.com/Bank_of_Bombayhttp://www.bookrags.com/July_1http://www.bookrags.com/1843http://www.bookrags.com/Bank_of_Madrashttp://www.bookrags.com/1861http://www.bookrags.com/January_27http://www.bookrags.com/1921http://www.bookrags.com/July_1http://www.bookrags.com/1955http://www.bookrags.com/1980shttp://www.bookrags.com/June_29http://www.bookrags.com/2007http://www.bookrags.com/Reserve_Bank_of_Indiahttp://www.bookrags.com/Reserve_Bank_of_Indiahttp://www.bookrags.com/Reserve_Bank_of_Indiahttp://www.bookrags.com/Reserve_Bank_of_Indiahttp://www.bookrags.com/2007http://www.bookrags.com/June_29http://www.bookrags.com/1980shttp://www.bookrags.com/1955http://www.bookrags.com/July_1http://www.bookrags.com/1921http://www.bookrags.com/January_27http://www.bookrags.com/1861http://www.bookrags.com/Bank_of_Madrashttp://www.bookrags.com/1843http://www.bookrags.com/July_1http://www.bookrags.com/Bank_of_Bombayhttp://www.bookrags.com/1840http://www.bookrags.com/April_15http://www.bookrags.com/Bank_of_Bengalhttp://www.bookrags.com/1809http://www.bookrags.com/January_2http://www.bookrags.com/Bank_of_Calcuttahttp://www.bookrags.com/1806http://www.bookrags.com/June_2http://www.bookrags.com/1955http://www.bookrags.com/30_Aprilhttp://www.bookrags.com/Central_bankhttp://www.bookrags.com/Reserve_Bank_of_Indiahttp://www.bookrags.com/Parliament_of_India


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Foreign Offices:

State Bank of India is present in 32 countries, where it has 84

offices serving the international needs of the bank's foreign customers, and in some

cases conducts retail operations. The focus of these offices is India-related

business.

Foreign Branches:

SBI has branches in these countries:

Australia

Bahrain

Belgium

Canada

Dubai

France

Germany

Hong Kong

IsraelJapan

Singapore

South Africa

U.K.
http://www.bookrags.com/Australiahttp://www.bookrags.com/Bahrainhttp://www.bookrags.com/Belgiumhttp://www.bookrags.com/Canadahttp://www.bookrags.com/Dubaihttp://www.bookrags.com/Francehttp://www.bookrags.com/Germanyhttp://www.bookrags.com/Hong_Konghttp://www.bookrags.com/Israelhttp://www.bookrags.com/Japanhttp://www.bookrags.com/Singaporehttp://www.bookrags.com/South_Africahttp://www.bookrags.com/U.K.http://www.bookrags.com/U.K.http://www.bookrags.com/South_Africahttp://www.bookrags.com/Singaporehttp://www.bookrags.com/Japanhttp://www.bookrags.com/Israelhttp://www.bookrags.com/Hong_Konghttp://www.bookrags.com/Germanyhttp://www.bookrags.com/Francehttp://www.bookrags.com/Dubaihttp://www.bookrags.com/Canadahttp://www.bookrags.com/Belgiumhttp://www.bookrags.com/Bahrainhttp://www.bookrags.com/Australia


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U.S.A

Growth:

State Bank of India has often acted as guarantor to the Indian

Government, most notably during Chandra Shekhar's tenure as Prime Minister of

India. With more than 9400 branches and a further 4000+ associate bank branches,

the SBI has extensive coverage. Following its arch-rival ICICI Bank,

State Bank of India has electronically networked most of its metropolitan, urban

and semi-urban branches under its Core Banking System (CBS), with over 4500

branches being incorporated so far. The bank has the largest ATM

network in the country having more than 5600 ATMs [1]. The State

Bank of India has had steady growth over its history, though the Harshad Mehta

scam in 1992 marred its image. In recent years, the bank has sought to

expand its overseas operations by buying foreign banks. It is the only Indian bank

to feature in the top 100 world banks in the Fortune Global 500 rating and various

other rankings. According to the Forbes 2000 listing it tops all Indian companies.

Fortune Global 500 Ranking2007:

SBI debuted in the Fortune Global 500 at 498 in 2006. In 2007 it moved up

to 495. As per fortune 500-2007 following are the data for SBI in $ million.

Revenues 15,119.4. Profits 1,407.3. Assets 187,547.1. Stockholders' Equity

9,786.2
http://www.bookrags.com/U.S.Ahttp://www.bookrags.com/Government_of_Indiahttp://www.bookrags.com/Government_of_Indiahttp://www.bookrags.com/Chandra_Shekharhttp://www.bookrags.com/Prime_Minister_of_Indiahttp://www.bookrags.com/Prime_Minister_of_Indiahttp://www.bookrags.com/ICICI_Bankhttp://www.bookrags.com/Automatic_Teller_Machinehttp://www.statebankofindia.com/viewsection.jsp?lang=0&id=0,10,75http://www.bookrags.com/Harshad_Mehtahttp://www.bookrags.com/1992http://www.bookrags.com/Fortune_Global_500http://www.bookrags.com/Forbes_2000http://www.bookrags.com/Fortune_Global_500http://www.bookrags.com/Fortune_Global_500http://www.bookrags.com/Forbes_2000http://www.bookrags.com/Fortune_Global_500http://www.bookrags.com/1992http://www.bookrags.com/Harshad_Mehtahttp://www.statebankofindia.com/viewsection.jsp?lang=0&id=0,10,75http://www.bookrags.com/Automatic_Teller_Machinehttp://www.bookrags.com/ICICI_Bankhttp://www.bookrags.com/Prime_Minister_of_Indiahttp://www.bookrags.com/Prime_Minister_of_Indiahttp://www.bookrags.com/Chandra_Shekharhttp://www.bookrags.com/Government_of_Indiahttp://www.bookrags.com/Government_of_Indiahttp://www.bookrags.com/U.S.A


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Group companies:

SBI Capital Markets Ltd

SBI Mutual Fund (A Trust)

SBI Factors and Commercial Services Ltd

SBI DFHI Ltd

SBI Cards and Payment Services Pvt Ltd

SBI Life Insurance Co. Ltd - Bancassurance (Life Insurance)

SBI Funds Management Pvt LtdSBI Canada

Corporate Details:

State Bank of India is India's largest bank amongst all public and private sector

banks operating in India. State Bank of India owns and operates the following

subsidiaries and Joint Ventures

State Bank Of India Credit Card State Bank Of India Online State Bank Of India USA State Bank Of India Services State Bank Of India Mutual Funds State Bank Of India Branch State Bank Of India NRI Account
http://www.bookrags.com/Bancassurancehttp://www.bookrags.com/Bancassurance


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Banking Subsidiaries:

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

State Bank of Travancore (SBT)

Activities:

State Bank of India administrative structure is well equipped to oversee the

large network of branches in India and abroad. The State Bank of India 14 Local

Head Offices and 57 Zonal Offices are located at important cities spread

throughout the country. State Bank of India has 52 foreign offices in 34 countries

across the globe. The Corporate Accounts Group is a Strategic Business Unit of the

Bank set up exclusively to fulfill the specialized banking needs of top corporate in

the country.

The main activities of are into -

Personal Banking. NRI Services. Agriculture. International. Corporate. SME.


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State Bank of India offers the following services to its customers -

Domestic Treasury. SBI Vishwa Yatra Foreign Travel Card. Broking Services Revised Service Charge. ATM Services. Internet Banking. E-Pay. E-Rail. RBIEFT. Safe Deposit Lockers. Gift Cheques. MICR Codes. Foreign Inward Remittances.


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Profile of ICICI:

ICICI Bank is India's second-largest bank with total assets of Rs. 3,849.70

billion (US$ 82 billion) at September 30, 2008 and profit after tax Rs. 17.42 billion

for the half year ended September 30, 2008. The Bank has a network of about

1,400 branches and 4,530 ATMs in India and presence in 18 countries. ICICI Bank

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 United States,

Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International Finance

Centre and representative offices in United Arab Emirates, China, South Africa,

Bangladesh, Thailand, Malaysia and Indonesia. Our UK subsidiary has established

branches in Belgium and Germany.

ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and the

National Stock Exchange of India Limited and its American Depositary Receipts

(ADRs) are listed on the New York Stock Exchange (NYSE).


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History:

ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial

institution, and was its wholly-owned subsidiary. ICICI's shareholding in ICICI

Bank was reduced to 46% through a public offering of shares in India in fiscal

1998, an equity offering in the form of ADRs listed on the NYSE in fiscal 2000,

ICICI Bank's acquisition of Bank of Madura Limited in an all-stock amalgamation

in fiscal 2001, and secondary market sales by ICICI to institutional investors in

fiscal 2001 and fiscal 2002. ICICI was formed in 1955 at the initiative of the

World Bank, the Government of India and representatives of Indian industry. The

principal objective was to create a development financial institution for providing

medium-term and long-term project financing to Indian businesses. In the 1990s,

ICICI transformed its business from a development financial institution offering

only project finance to a diversified financial services group offering a wide

variety of products and services, both directly and through a number of subsidiariesand 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.


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Important Highlights Of ICICI

The Boards of ICICI Ltd and ICICI Bank approved the merger of ICICI Ltd.with ICICI Bank.

ICICI Ltd merged with ICICI Bank Ltd to create Indias second-largest bankin terms of assets.

ICICI Bank launched Private Banking.

ATM-on-Wheels, Indias first mobile ATM, launched in Mumbai.

Mobile banking service in India launched in association with RelianceInfocomm.

Indias first multi-branded credit card with HPCL and Airtel launched. Kisan Loan Card and innovative, low-cost ATMs were launched in rural

India.

ICICI Bank and CNBC TV 18 announced Indias first ever awardsrecognizing the achievements of SMEs, a pioneering initiative to encourage

the contribution of Small and Medium Enterprises to the growth of the

Indian economy.

ICICI Bank opened its 500th branch in India. ICICI Bank introduced partnership model wherein ICICI Bank would forge

an alliance with existing micro finance institutions (MFIs). The MFI would

undertake the promotional role of identifying, training and promoting the

micro-finance clients and ICICI Bank would finance the clients directly on

the recommendation of the MFI.


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ICICI Bank introduced 8 to 8 Banking wherein all the branches of the Bankwould remain open from 8a.m. to 8 p.m. from Monday to Saturday.

ICICI Bank introduced the concept of floating rate for home loans in India. First rural branch and ATM launched in Uttar Pradesh at Delpandarwa,

Hardoi.

ICICI Bank and Visa jointly launched mChqa revolutionary credit cardon the mobile phone.

Private Banking Masters 2005, a nationwide Golf tournament for highnetworth clients of the Private Banking division launched. This event is the

largest domestic invitation amateur golf event conducted in India.

Becomes the first Indian company to make a simultaneous equity offering of$1.8 billion in India, the United States and Japan.

Acquired IvestitsionnoKreditny Bank of Russia. ICICI Bank became the largest bank in India in terms of its market

capitalization.

ICICI Bank became the first private entity in India to offer a discount toretail investors for its follow-up offer.

ICICI Bank became the first Indian bank to issue hybrid Tier-1 perpetualdebt in the international markets.

ICICI Bank subsidiary set up in Russia.

Introduced a new product - NRI smart save Deposits a unique fixeddeposit scheme for nonresident Indians.

Representative offices opened in Thailand, Indonesia and Malaysia. ICICI Bank became the largest retail player in the market to introduce a

biometric enabled smart card that allow banking transactions to be


30/59

conducted on the field. A low-cost solution, this became an effective

delivery option for ICICI Banks micro-finance institution partners.

Financial counseling centre Disha launched. Disha provides free creditcounseling, financial planning and debt management services.

ICICI Bank makes a USD 2 billion three-tranche international bond offering,which becomes the largest bond offering by an Indian bank.

Sangli Bank was amalgamated with ICICI Bank. ICICI Bank enters USA, launches its first branch in New York ICICI Bank enters Germany, opens its first branch in Frankfurt

Personal Banking:

Deposits Loans Cards Investments Insurance Demat services Wealth management


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Business Banking:

Corporate net banking Cash Management Trade services SME services Online taxes Custodial services

Bank:

A bank is a financial institution whose primary activity is to act as a payment agent

for customers and to borrow and lend money. It is an institution for receiving,

keeping, and lending money.

Mobile Banking:

Mobile banking (also known as M-Banking, mbanking, SMS Banking etc.) is a

term used for performing balance checks, account transactions, payments etc. via a

mobile device such as a mobile phone. Mobile banking today (2007) is most often

performed via SMS or the Mobile Internetbut can also use special programs called

clients downloaded to the mobile device.
http://en.wikipedia.org/wiki/Financial_institutionhttp://en.wikipedia.org/wiki/Mobile_phonehttp://en.wikipedia.org/wiki/SMShttp://en.wikipedia.org/wiki/Mobile_Internethttp://en.wikipedia.org/wiki/Mobile_Internethttp://en.wikipedia.org/wiki/SMShttp://en.wikipedia.org/wiki/Mobile_phonehttp://en.wikipedia.org/wiki/Financial_institution


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Internet Banking:

Online banking (or Internet banking) allows customers to conduct financial

transactions on a secure website operated by their retail or virtual bank, credit

union orbuilding society.

Core Banking System:

Core Banking is a general term used to describe the services provided by a

group of networked bank branches. Bank Customers may access their funds and

other simple transactions from any of the menber branch offices.

Atm:

An automated teller machine (ATM) is a computerized telecommunications

device that provides the customers of a financial institution with access to financial

transactions in a public space without the need for a human clerkorbank teller. Onmost modern ATMs, the customer is identified by inserting a plastic ATM card

with a magnetic stripe or a plastic smartcard with a chip, that contains a unique

card number and some security information, such as an expiration date or CVC

(CVV). Security is provided by the customer entering a personal identification

number(PIN).
http://en.wikipedia.org/wiki/Virtual_bankhttp://en.wikipedia.org/wiki/Bankhttp://en.wikipedia.org/wiki/Credit_unionhttp://en.wikipedia.org/wiki/Credit_unionhttp://en.wikipedia.org/wiki/Building_societyhttp://en.wikipedia.org/wiki/Customerhttp://en.wikipedia.org/wiki/Financial_institutionhttp://en.wikipedia.org/wiki/Financial_transactionhttp://en.wikipedia.org/wiki/Financial_transactionhttp://en.wikipedia.org/wiki/Clerkhttp://en.wikipedia.org/wiki/Bank_tellerhttp://en.wikipedia.org/wiki/ATM_cardhttp://en.wikipedia.org/wiki/Magnetic_stripehttp://en.wikipedia.org/wiki/Smartcardhttp://en.wikipedia.org/wiki/Integrated_circuithttp://en.wikipedia.org/wiki/Card_Security_Codehttp://en.wikipedia.org/wiki/Securityhttp://en.wikipedia.org/wiki/Personal_identification_numberhttp://en.wikipedia.org/wiki/Personal_identification_numberhttp://en.wikipedia.org/wiki/Personal_identification_numberhttp://en.wikipedia.org/wiki/Personal_identification_numberhttp://en.wikipedia.org/wiki/Securityhttp://en.wikipedia.org/wiki/Card_Security_Codehttp://en.wikipedia.org/wiki/Integrated_circuithttp://en.wikipedia.org/wiki/Smartcardhttp://en.wikipedia.org/wiki/Magnetic_stripehttp://en.wikipedia.org/wiki/ATM_cardhttp://en.wikipedia.org/wiki/Bank_tellerhttp://en.wikipedia.org/wiki/Clerkhttp://en.wikipedia.org/wiki/Financial_transactionhttp://en.wikipedia.org/wiki/Financial_transactionhttp://en.wikipedia.org/wiki/Financial_institutionhttp://en.wikipedia.org/wiki/Customerhttp://en.wikipedia.org/wiki/Building_societyhttp://en.wikipedia.org/wiki/Credit_unionhttp://en.wikipedia.org/wiki/Credit_unionhttp://en.wikipedia.org/wiki/Bankhttp://en.wikipedia.org/wiki/Virtual_bank


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OBSERVATIONS & FINDINGS

SCHEMES PROVDED BY SBI:-

Terms deposit scheme Recurring deposits scheme Loans SBI SARAL Personal loan Education loan Car loan Home loan Medi-Plus loan

TERM DEPOSITS

Provide security, trust and competitive rate of interest. Flexibility in period of term deposit from 15 days to 10 years Affordable Low Minimum Deposit Amount: One can open a term deposit

with SBI for a nominal amount of Rs.1000/- only.

Flexibility in choosing the amount one wish to invest and the maturityperiod.


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BENIFITS OF SCHEME:-

Safety:SBI IS continues to deliver on its promise of safety and security over 200

years.

Liquidity Loan /overdraft facility:

One can avail a loan/overdraft against his deposit. SBI provides loan /

overdraft up to 90% of deposit amount at nominal cost. So one can continue to

earn interest in his deposit and still can meet his urgent financial requirements.

Premature Withdrawal

Interest to be charged on premature withdrawal of term deposits at 1.00% below

the rate applicable for the period deposit has remained with the Bank.

Transferability-

Transfer of Term Deposits between wide networks of branches without any charge.

Compounding / Flexible / Timely Payment of Interest - Under Special Term

Deposit Scheme, interest accrues in account and gets compounded quarterly.

Term Deposits are available at all SBI Branches Easy and convenient access of information at SBI Internet Banking.

Tax Implications:

Tax Deductible at Source, as per Income Tax Act
http://www.sbi.co.in/viewsection.jsp?id=0,1,21,138http://www.sbi.co.in/viewsection.jsp?id=0,1,21,138


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Flexibility to convert Special Term Deposit to Term Deposit and vice versa

One can convert his special Term Deposit to a Term Deposit to receivemonthly/quarterly interest payments to match his financial requirements.

One can also convert his Term Deposit to a Special Term Deposit, whichprovides compounded rate of interest to multiply his money faster.

RECURRING DEPOSIT:-

Recurring deposit refers to a little investment by an investor to meet his financialgoals of future (Childrens education or marriage, buy a car etc.) Recurring deposit

provides the element of compulsion to save at high rates of interest, wide choice in

period of deposit.

Features:-

Flexibility in period of deposit with maturity ranging from 12 months to 120months.

Low minimum monthly deposit amount. One can start a Recurring Deposit with SBI for a monthly instalment of

Rs.100/- only.

Benefits:-

Including all the benefits of terms deposits there are some more benefits of

recurring benefits:-

Nomination Facility isavailable in this scheme


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one can save a monthly instalment of multiple of 10 every month One can monitor his deposit through SBI Internet Banking or through a

passbook issued to you.

LOANS:-

Type Amount

Min.

Max.

Rate of

interest

Security Eligibility

SBI SARAL

Personal loan

10,000

10,00,000

17.75 Nil A person having a good

profession and income

Education loan 4,00,000

4,00,000

7,50,000

4,00,000

7,50,000

12.25%

13.75%

Nil

Tangible

collateral

security

suitable

third party

Graduation courses

Post graduation

courses Professional

courses

Other courses approved

by

UGC/Government/AICT

E etc.


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12.25% guarantee

Car loan

Used vehicle

Up to 3 years

Above 3 years

New vehicle

Up to 3 years

1

2

Above 3 years

3-5years

5-7years

-

15,00,000

-

15,00,000

-

15,00,000

-

7,50,000

7,50,000

15,00,000

16.25%

16.50%

12.75%

12.50%

12.75%

13.00%

As per

bank's

extant

instructions

.

person having a income

>1,00,000


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-

15,00,000

-

15,00,000

Home loan

Up to 5 years

5 to15 years

30,00,000

30,00,000

75,00,000

30,00,000

75,00,000

0

10.50%

11.75%

11.75%

10.75%

12.00%

Availabilit

y of

sufficient,regular and

continuous

source of

income for

servicing

the loan

repayment.

Age

Equitable mortgage of the

property or

Other tangible security

of adequate value like

NSCs,

Life Insurance policies

etc.,

if the property cannot be

mortgaged


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Up to 15 years

30,00,000

30,00,000

75,00,000

30,00,000

75,00,000

0

30,00,000

30,00,000

75,00,000

30,00,000

75,00,000

12.00%

11.00%

12.25%

12.50%

18-60 years

Medi-Plus loan 50,000

1,00,000

50,000

2,00,000

50,000

1,00,000

14.50% As per

bank's

extant

instructions

.

Govt emp. From 10 years

self-employed

professional

employee/agent

(income>3lakhs)


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SCHEMES PROVDED BY ICICI:-

DEPOSITS CARDS ONLINE INVESTEMENT Loans

Personal loan Education loan

Car loan Home loan Property loan

Deposits:-

ICICI BANKoffers wide variety of deposit products to suit yourrequirements. Convenience of networked branches/ Atms and facility

of e-channels like internet andmobile banking.

Some of the ICICI deposit products are:-
http://www.icicibank.com/pfsuser/channels/mobile/mobile.htmhttp://www.icicibank.com/pfsuser/channels/mobile/mobile.htmhttp://www.icicibank.com/pfsuser/channels/mobile/mobile.htmhttp://www.icicibank.com/pfsuser/channels/mobile/mobile.htm


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Saving account:-

A Savings Account for everyone with a host of

convenient features and banking channels to transact

through. So now you can bank at your convenience,

withut the stress of waiting in queues.
http://www.icicibank.com/Pfsuser/icicibank/depositproducts/savingaccount/savingaccount.htm


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Life Plus Senior Citizens Savings Account:-

This is a plan of ICICI bank for senior citizens,

who are of 60 years and above

Young Stars Savings Account:-

It's really important to help children

learn the value of finances and money

management at an early age. This is a

plan for children and their future. In a

tiny age Children learn how to manage

their personal finances.

Recurring Deposits:-

When people dont have so much

money to invest then according to this

scheme ICICI provides scheme to a

person to invest a little amount of

money.

CARDS:-

ICICI Bank offers a variety of cards to suit your different

transactional needs. One can use these cards for shopping, traveling or
http://www.icicibank.com/Pfsuser/icicibank/depositproducts/recurringdeposits/recurring.htmhttp://www.icicibank.com/pfsuser/icicibank/depositproducts/kid-e-bank/kid-e-bank.htmhttp://www.icicibank.com/Pfsuser/icicibank/depositproducts/recurringdeposits/recurring.htmhttp://www.icicibank.com/pfsuser/icicibank/depositproducts/kid-e-bank/kid-e-bank.htm


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any other type of payments. These cards are of many types and used

for different purpose.

The different types of cards are:-

1. Credit cards: - Credit Cards give a smart way to shop, andoffer flexibility and convenience in managing finances. ICICI

credit cards provide a lot of exciting offers like low interest rate

and high cash and credit limit.

2. Travel cards: - Travel cards give a flexibility to travel aroundthe world. One can pay in currency of various countries fortraveling with the help of this card.

3. Debit Card: - this is a most common card. This can be used forshopping, billing of electricity and telephony.

ONLINE INVESTEMENT:-

Along with the cards and deposits ICICI provides online investments.

With the help of online investment one can manage his finances by

investing in following schemes of ICICI:-

ICICI Bank Tax Saving Bonds Government of India Bonds Investment in Mutual Funds Initial Public Offers by Corporate Investment in "Pure Gold"


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Foreign Exchange Services Senior Citizens Savings Scheme, 2004

Loans:-ICICI provides various loan schemes. It is a no. one home loan

and car loan provider. Along with this it provides personal and

education loan.

Type Amount

Min.

Max.

Rate of

interest

Security Eligibility

Personal loan

1,500000

Education

loan

4,00,000

4,00,000

7,50,000

For all

10-12%

Nil

Tangible

collateral

security

suitable

Graduation courses

Post graduation courses

Professional courses

Other courses approved by

UGC/Government/AICTE etc.


45/59

4,00,000

7,50,000

third party

guarantee

Car loan -

15,00,000

11-

13%

As per

bank's

extant

instructions.

person having a income

>1,00,000

Home loan 0

75,00,000

11.5-

12.5%

Availability

of

sufficient,

regular and

continuous

source of

income for

servicing

the loan

repayment.

Equitable mortgage of the

property or

Other tangible security

of adequate value like NSCs,

Life Insurance policies etc.,

if the property cannot be

mortgaged


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ANALYSIS

ADVANTAGES OF ICICI OVER SBI:

ICICI is growing at a very fast rate with a total asset of Rs. 3,744.10 billion.

In the area of human relations, the two are taking divergent paths. SBI, which

had over 1 lacks employees, has reduced headcount through a voluntary

retirement scheme and is cautious about adding headcount.

ICICI Bank, on the other hand, is setting up regional hubs where its workforce

would be concentrated and plans to add 20,000 to its headcount every year. The

group plans to add between 75,000 and 1, 00,000 employees in the next few

years.

ICICI Bank is also set to outdo SBI is in its international book

- An area where it has been very aggressive.


47/59

ADVANTAGES OF SBI OVER ICICI:

SBI is the largest and oldest bank of India. Its major stocks are held bygovernment of India. So this bank enjoys the trust of its Customers a lot.

SBI offers flexible tenures of loan repayment.

State bank of India has vast experience in the field of SME(Small and Medium Enterprises) Financing.

As it is the oldest name so it enjoys public trust a lot.SBI have four national level Apex Training Colleges and 54

Learning Centers spread all over the country the Bank is

Continuously engaged in skill enhancement of its employees.

Some of the training programs are attended by bankers from

banks in other countries.

SBI group, which has over 10,000 branches, is planning to add another3,000 branches.


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It is also set to become the largest issuer of debit cards and is the secondlargest credit card issuer.

Six reasons why we currently prefer SBI over ICICI

Reason #1 - Stronger CASA base

CASA franchise of 42% provides comfort on margin sustainability for SBI. Though CASA for ICICI will also improve from the current 27%, we

believe SBIs liability franchise will strengthen further with the opening of

~2,000 branches in FY09.


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Reason #2Asset-liability match of SBI is better


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SBI has a better asset-liability match, with 60% of liabilities of more than 1-year maturity, while ~71% of assets have more than 1-year maturity.

ICICI has 43% of its liabilities with more than 1-year maturity, while ~61%of assets have more than 1-year maturity.

Reason #3 - Proxy insurance plays onboth

Any upside on insurance reforms can be played through SBI as well.


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Cost ratios of SBI Life are better than ICICI Prudential Life due to its strongbancassurance model and better agency productivity.

Reason #4 - SBI has more diversified loan book

While asset quality risks persist for both banks, SBIs loan book is welldiversified across a variety ofsegments; ICICIs loan book is still skewed

towards retail.

According to our analysis, over the next 18 months the retail segment islikely to be more vulnerable than the corporate segment.


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Reason #5 - Market share gain in favor of SBI

SBI will continue to gain market share in both advances and deposits atICICIs expense due to the latters strategy of going slow.

Advances growth for SBI as at Q1FY09 was 28% versus 13% for ICICI. Deposit growth for SBI was at 25%, while for ICICI it was 2% as at

Q1FY09.


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Reason #6 - Return ratios for SBI are better

SBI is trading at 0.94x FY10E adjusted book, while ICICI is trading at1.0x FY10E adjusted book (assuming value of subsidiaries for SBI at

INR 301 and for ICICI at INR 283 on FY10E basis).

ROE for ICICI is expected to be in the range of 8-10% in FY09-10E,while that of SBI will be in the range of 14-16%.


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Key risks

SBIs low provisioning coverage (44%) will lead to higher provisioning costin FY10E, considering the aggressive balance sheet growth.

For ICICI, the expectation of bad asset quality is priced in and furthernegative surprises look unlikely.

Like any other PSU bank, the bulk of SBIs loan origination happens

through branches where underwriting standards are stricter, unlike the DSA

model that ICICI follows. Hence, while we expect NPAs to increase for SBI in

FY10E and FY11E, we do not expect SBI to go through a similar experience as

ICICI.

Also, revised loan waiver guidelines could keep SBIs Q2FY09 profitsmuted due to higher provision requirement.


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CONCLUSION:

The gap between SBI and the rest of the bank is so wide that SBI comes out as

number one on almost all counts. This includes assets, branch network, ATM

network, number of employees, and size of profits. The only place that ICICI Bank

has been able to upset the monolith has been in the area of market capitalization.

One reason why SBI has lagged in market cap despite its size has been its inability

to unlock value from its various businesses. However, there are signs that this is

changing and the bank is making attempts to realize the value of its investments in

the life insurance and asset management business.

SBI and ICICI are both Indias largest banks. Their growth means Indias growth.

And by this competition customers will be benefited and Indian economy will get a

boost.


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LEARNINGS

More flexible requirement given by this bank. Creating an efficient and effective organization. This live project topic gives opportunity to know about various loan schemes

provided by the bank.

The study shows all the important aspects of Bank loan schemes & how thisaffects to current financial trends.

It also describes the core features of borrowers as well as bankers forfinancing loan which is a complex process.


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LIMITATIONS

TIME CONSTRAINT I COLLECTED THE INFORMATION FROM THE MANAGER OF

SBI AND STAFF OF ICICI BY PHONE I COULD NOT MEET HIM

PERSONALLY


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BIBLIOGRAPHY

Primary data:-

Mr. Amit Yadav (Manager, Loan SBI) Mr. Manoj Kumar(Cashier, ICICI)

Secondary data:

Internet website :www.Google.com

www.Statebankofindia.com

www.Icicibank.com
http://www.google.com/http://www.google.com/http://www.statebankofindia.com/http://www.statebankofindia.com/http://www.icicibank.com/http://www.icicibank.com/http://www.icicibank.com/http://www.statebankofindia.com/http://www.google.com/

final project of sbi n icici

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