BANKING FACILITIES AND CUSTOMER SERVICES IN ICICI AND SBI: A COMPARATIVE STUDY

NAME OF RESEARCHER
ADDRESS: EMAIL ID Abstract This study provides the customer services and banking security offered by one of the well known banks ICICI and SBI. Banking in India originated in the last decades of the 18th century. The oldest bank in existence in India is the State Bank of India, a government-owned bank that traces its origins back to June 1806 and that is the largest commercial bank in the country. Central banking is the responsibility of the Reserve Bank of India, which in 1935 formally took over these responsibilities from the then Imperial Bank of India, relegating it to commercial banking functions. After India's independence in 1947, the Reserve Bank was nationalized and given broader powers. In 1969 the government nationalized the 14 largest commercial banks; the government nationalized the six next largest in 1980.

Currently, India has 88 scheduled commercial banks (SCBs) - 27 public sector banks (that is with the Government of India holding a stake), 29 private banks (these do not have government stake; they may be publicly listed and traded on stock exchanges) and 31 foreign banks. They have a combined network of over 53,000 branches and 17,000 ATMs. According to a report by ICRA Limited, a rating agency, the public sector banks hold over 75 percent of total assets of the banking industry, with the private and foreign banks holding 18.2% and 6.5% respectively.

Introduction: Early history: Banking in India originated in the last decades of the 18th century. The first banks were The General Bank of India, which started in 1786, and the Bank of Hindustan, both of which are now defunct. The oldest bank in existence in India is 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 it failed 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 War stopped 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 French colony, 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.

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 stock banks. All these banks operated in different segments of the economy. The exchange banks, mostly owned by Europeans, concentrated on financing foreign trade. Indian joint stock banks were generally undercapitalized 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 of banks established then have survived to the present such as Bank of India, Corporation Bank, Indian Bank, Bank of Baroda, Canara Bank and 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 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:

Year s
1913 1914 1915 1916 1917 1918

Number of banks that failed

12 42 11 13 9 7

Authorized capital (Rs. Lakhs)

274 710 56 231 76 209

Paid-up Capital (Rs. Lakhs)

35 109 5 4 25 1

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 nonbanking subsidiaries offering merchant banking services, fund management, factoring services, primary dealership in government securities, credit cards and insurance.

The eight banking subsidiaries are: 1-State Bank of Bikaner and Jaipur (SBBJ) 2-State Bank of Hyderabad (SBH) 3-State Bank of India (SBI) 4-State Bank of Indore (SBIR) 5-State Bank of Mysore (SBM) 6-State Bank of Patiala (SBP) 7-State Bank of Saurashtra (SBS) 8-State Bank of Travancore (SBT) Company 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).

Scope of the study: The scope of this research is to identify the service satisfaction pattern of customers of SBI and ICICI. This research is based on primary data and secondary data. Due to time constraint only limited number of persons contacted. This study mainly focuses on service pattern offered by SBI and ICICI in overall sectors . It provides help to further the research for other organized services. It aims to understand the skill of banking system in the area like technological advancement, competition in management. In todays scenario, b a n k i n g has become much faster day by day by telephones, internet, media etc. Today many thousands of banks providing services for different sectors and for different purpose. This study will help to understand customer preferences and their satisfaction by the services provided by SBI and ICICI banks. It will also help to these banks to form various strategies and getting the results from marketing efforts. In Future with the help of customer these bank can become more efficient interms of services and business growth, Product Development, Advertising, Brand awareness etc. METHODOLOGY: The research methodology, not only the research methods are but also consider the logic behind the methods. They are in the contest of our research studied. And explain why we are using a particular method or techniques and we are not using others. Research methodology is a systematic way to solve the research problems; it refers to search for knowledge, a scientific and systematic search for information. Marketing research is the systematic design, collection, analysis and reporting of data and finding relevant to a specific marketing design, collection, analysis and reporting of data and finding relevant to a specific marketing situation facing the company.

Target population: The target population in this research refers to the bank customers who are having an account in SBI bank and ICICI bank due to the convenience in collecting the data. The respondents can be any gender, any income level, any occupation and any education level. Sampling unit The sampling units are customers of ICICI bank and SBI bank. Research design The objective of the study has been achieved by using both Primary and Secondary Datas. The datas obtained for the study was primarily from field investigation carried out among the customers of SBI and ICICI. Data collection Data collection means collections of information, facts or figures for the problem. Primary Data Primary data is the first hand information obtained by investigator. Primary source is one itself collects the data. Primary data can be collected by observation, by interviews, by face to face questioning, by using questionnaire, when the needed data do not exist or are dated, inaccurate, incomplete, or unreliable. Primary data was collected through questionnaire from the people who are the existing customers of SBI and ICICI. Secondary Data Secondary data is collected by others customer and the researcher is using that information for his own research purpose. Secondary data can be collected from published reports, newspaper, websites, and journals, publications of national and international organization.

Secondary data was collected through company websites and records. And analysis on various aspects has been done using different statistical techniques. Sample Design Sample design is a definite plan for obtaining a sample from a given population. It refers to the technique or the procedure the researcher would adopt in selecting items for samples. Research design is needed because it facilitates the smooth railing of the various research operations thereby making research as effective as possible yielding maximal information with minimal expenditure of effort, time and money. The research started with designing the sample for the survey. The questionnaires are designed and the area of the study was finalized as Pune and Mumbai. The sample size was finalized as 200 customers. The method for the sampling is Stratified Random Sampling Method so the sample size is distributed at entire Pune and Mumbai city. Sampling plan: Area of the study- This study covers Punes developed areas. (All PUNE CITY and MUMBAI braches of SBI and ICICI). Sample size 200 Customers (100 SBI and 100-ICICI). Sampling Instruments- Questionnaire, face to face interview. Sampling method For this research we use non-probability sampling. Zikmund (1997) stated that in nonprobability sampling, the probability of any particular member of the population being chosen is unknown. The element in the population does not have any probability attached to their being chosen as sample subjects. Snow ball sampling will be applied in this research. Snow ball sampling is used to collect the data from the customers. Snow ball sampling refers to the procedure that involves the selection of additional respondents based on referrals of initial respondents. Method of Data Collection

The Quantitative data collection methods rely on random sampling and structured data collection instruments that fit diverse experiences into predetermined response categories. They produce results that are easy to summarize, compare, and generalize. Depending on the research question, participants may be randomly assigned to different treatments. If this is not feasible, the researcher may collect data on participant and

situational characteristics in order to statistically control for their influence on the dependent, or outcome, variable. If the intent is to generalize from the research participants to a larger population, the researcher will employ probability sampling to select participants. Instrument for Data Collection: Interviews In Quantitative research (survey research), interviews are more structured than in Qualitative research. Conclusion: . Since both the banks are competing equally with each other. But SBI bank is little bit below the line in customer complaints handling when compared to ICICI bank. The ICICI bank is little bit below the line in concentrating on female customers when to SBI bank.

BIBLIOGRAPHY

www.icicibank.com www.sbi.co.in www.ezine@rticles.com www.iupindia.org www. ebscohostsearch. com

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