Project Report

ON

A COMPARATIVE STUDY OF
CUSTOMER SERVICES IN ICICI AND
SBI
Submitted for the partial fulfilment for the award
Of
Bachelor of Business Administration from
Chaudhary Charan Singh University, Meerut
2012-15
Submitted To:
Beacon Institute OF Technology

Under The supervision Of: -

Submitted By:-

Mr. TOSHAM SINGH

SACHIN KUMAR

(H.O.D., & Asst. Professor)

BBA VI SEM
Roll No. 8326547

DEPARTMENT OF MANAGEMENT
MAHAVEER INSTITUTE OF TECHNOLOGY, PHOLLI
MEERUT
1

BATCH-2012-15

DECLARATION

I SACHIN KUMAR BBA VI Sem here by declare that the project entitled A

Comparative study of customer services in ICICI and SBI Project

Guide Mr. TOSHAM SINGH, H.O.D., Asst Professor, MIT, Meerut has
been completed by me. I assure that this project is unique and Submitted To CCS,
University, Meerut has not been reproduced or copied from any other soures.

SACHIN KUMAR
BBA VI SEM
Roll No. 8326547

ACKNOWLEDGEMENT

I am grateful to thank our Head Mr. TOSHAM SINGH, H.O.D., Asst

Professor, MIT, Meerut for giving me this great opportunity to do my project.
I also extent my thanks to. All Faculty Management, Meerut faculty guide who
has given me moral support to do my project work.
I also extend my thankfulness to my beloved parents and friends for their
continuous encouragement at every moment.

SACHIN KUMAR
BBA VI SEM
Roll No. 8326547

PREFACE
ICICI Prudential Life Insurance is one of the largest Insurance networks in
the country, and 2nd Life Insurance Company in India. The ICICI Group has been
in existence since 1955 when ICICI Ltd., was created. ICICI Prudential started in
2002 as subsidiary of ICICI Ltd., Today ICICI Life Insurance has a customer base
of 4 million with total assets exceeding Rs.1, 00,000 Cr. making it the 2nd largest
life insurance company in the country, next only to LIC.

The Insurance sector, after the opening up, provides greater opportunities.
Several global players have emerged and the market has changed significantly. In
the changed scenario, the expectation is that the low Insurance premium as a
percentage of GDP prevailing in India will improve and will offer better
opportunities to the insurance players.

Life Insurance sector is one of the key areas where enormous business
potential exists. In India currently the life insurance premium as a percentage of
GDP is 1.3 per cent against 5.2 per cent in the US, but in the liberalized scenario,
the life insurance premiums were projected to grow at around 18% to 20% from Rs
215 billion in 1998- 99 to Rs 592 billion in 2004-05 and to Rs 1450 billion by

2009-10. Corporate non-life premium was projected to grow from Rs 84 billion in

1998-99 to Rs 386 billion in 2009-10 and personal line non-life from Rs 4 billion
to Rs 51 billion.
In the life Insurance segment the Life Insurance Corporation of India (LIC)
is the major player. The LIC has 2050 branches. It is constituted in to seven Zones.
Currently there are 5, 60,000 LIC agents in India. General Insurance is another
segment, which has been growing at a faster pace.

Table of contents

Chapter 1: Introduction

07 - 33

1.1 Overview of banking Industry

1.2 Company Profile

13

1.3 Research objective

31

1.4 Review of literature

31

1.5 Key Words

32

Chapter 2: Research Methodology

34 37

2.1 Sampling Design

35

2.2 Pilot Study

36

2.3 Research Methodology

37

2.4 Limitations of the Study

37

Chapter 3: Data Analysis and Interpretation

38 - 81

Chapter 4: Findings, Recommendations and Conclusion

82 - 85

Chapter 5: Appendices

86 - 91

INTRODUCTION

1.1 OVERVIEW OF THE BANKING INDUSTRY:

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.

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
9

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 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 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
10

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:

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

1916

13

231

1917

76

25

1918

209

11

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, was nationalized,
and it became an institution owned by the Government of India.

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

The Banking Regulation Act also provided that no new bank or branch of an existing
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, thethen 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

12

Parliament passed the Banking Companies (Acquisition and Transfer of Undertaking) Bill, and it
received the presidential approval on 9 August, 1969.
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 as New Generation techsavvy 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.
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.
13

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 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.

14

1.2 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.

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 as
successor

to

the

Imperial

15

Bank

of

India.

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.

State Bank of India (SBI) (LSE: SBID) is the largest bank in 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 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.
16

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.

Associate banks:
There are seven other associate banks that fall under SBI. They all use the "State Bank
of" name followed by the regional headquarters' name. These were originally banks belonging to
princely states before the government nationalized them in 1959. In tune with the first Five Year
Plan, emphasizing the development of rural India, the government integrated these banks with
the State Bank of India to expand its rural outreach. The State Bank group refers to the seven
associates and the parent bank. All the banks use the same logo of a blue keyhole. Currently, the
group is merging all the associate banks into SBI, which will create a "mega bank", and one
hopes, streamline operations and unlock value.

State Bank of Bikaner & Jaipur

17

State Bank of Hyderabad

State Bank of Indore
State Bank of Mysore
State Bank of Patiala
State Bank of Saurashtra
State Bank of Travancore

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:
The Israeli branch
Australia
Bahrain
Bangladesh
Belgium
Canada
Dubai
France
Germany
Hong Kong
Israel
Japan
People's Republic of China
Republic of Maldives
Singapore
South Africa
Sri Lanka
18

Sultanate of Oman
The Bahamas
U.K.
U.S.A

Subsidiaries and Joint Ventures:

In addition to the foreign branches above, SBI has these wholly owned subsidiaries and
joint ventures:
Nepal State Bank Limited
SBI Mauritius
Indian Ocean International Bank (Mauritius)
SBI Canada
SBI California

Growth:
Mumbai, India location.
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.

19

Fortune Global 500 Ranking 2007:

SBI debuted in the Fortune Global 500[2] 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

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 Ltd
SBI Canada

IT Initiatives:
According to PM Network (December 2006, Vol. 20, No. 12), State Bank of India
launched a project in 2002 to network more than 14,000 domestic and 70 foreign offices and
branches. The first and the second phases of the project have already been completed and the
third phase is still in progress. As of December 2006, over 10,000 branches have been covered.
The new infrastructure serves as the bank's backbone, carrying all applications, such as the IP
telephone network, ATM network, Internet banking and internal e-mail. The new infrastructure
has enabled the bank to further grow its ATM network with plans to add another 3,000 by the
end of 2007 raising the total number to 8,600. As of September 20, 2007 SBI has 7236 ATMs.

20

Corporate Details:
This site provides comprehensive information on State Bank of India or SBI Bank, the
premier Nationalized Indian Bank. State Bank of India is actively involved since 1973 in nonprofit

activity

called

Community

Services

Banking.

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

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)

Foreign Subsidiaries:

State bank of India International (Mauritius) Ltd.

State Bank of India (California).

State Bank of India (Canada).

INMB Bank Ltd, Lagos.

21

Non- banking Subsidiaries.

SBI Capital Markets Ltd (SBICAP)

SBI Funds Management Pvt Ltd (SBI FUNDS)

SBI DFHI Ltd (SBI DFHI)

SBI Factors and Commercial Services Pvt Ltd (SBI FACTORS)

SBI Cards & Payments Services Pvt. Ltd. (SBICPSL)

Joint ventures:

SBI Life Insurance Company Ltd (SBI LIFE).

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.

Domestic Treasury.

22

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.

Moreover, State Bank of India has Colleges/Institutes/Training Centers that are the seats of
learning and research and development. It caters not only to the employees of State Bank of
India but also other banks/establishments in India and abroad.

Performance:
SBI Bank India had Total Income of Rs 68376.83 crore for the financial year 2006 -07.
State Bank of India has posted Net Income to the tune of Rs 6364.38 crore or the financial year
2006 -07.

Organization:
State Bank of India is headed by Mr. Shri O. P. Bhatt, Chairman.

23

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 nonlife 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).

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 allstock amalgamation in fiscal 2001, and secondary market sales by ICICI to institutional investors
in fiscal 2001 and fiscal 2002. ICICI was formed in 1955 at the initiative of the World Bank, the
Government of India and representatives of Indian industry. The principal objective was to create
a development financial institution for providing medium-term and long-term project financing
to Indian businesses. In the 1990s, ICICI transformed its business from a development financial
institution offering only project finance to a diversified financial services group offering a wide
variety of products and services, both directly and through a number of subsidiaries and affiliates
24

like ICICI Bank. In 1999, ICICI become the first Indian company and the first bank or financial
institution from non-Japan Asia to be listed on the NYSE.
After consideration of various corporate structuring alternatives in the context of the emerging
competitive scenario in the Indian banking industry, and the move towards universal banking, the
managements of ICICI and ICICI Bank formed the view that the merger of ICICI with ICICI
Bank would be the optimal strategic alternative for both entities, and would create the optimal
legal structure for the ICICI group's universal banking strategy. The merger would enhance value
for ICICI shareholders through the merged entity's access to low-cost deposits, greater
opportunities for earning fee-based income and the ability to participate in the payments system
and provide transaction-banking services. The merger would enhance value for ICICI Bank
shareholders through a large capital base and scale of operations, seamless access to ICICI's
strong corporate relationships built up over five decades, entry into new business segments,
higher market share in various business segments, particularly fee-based services, and access to
the vast talent pool of ICICI and its subsidiaries. In October 2001, the Boards of Directors of
ICICI and ICICI Bank approved the merger of ICICI and two of its wholly-owned retail finance
subsidiaries, ICICI Personal Financial Services Limited and ICICI Capital Services Limited,
with ICICI Bank. The merger was approved by shareholders of ICICI and ICICI Bank in January
2002, by the High Court of Gujarat at Ahmadabad in March 2002, and by the High Court of
Judicature at Mumbai and the Reserve Bank of India in April 2002. Consequent to the merger,
the ICICI group's financing and banking operations, both wholesale and retail, have been
integrated in a single entity.
ICICI Bank has formulated a Code of Business Conduct and Ethics for its directors and
employees.
ICICI Bank (BSE: ICICI) (formerly Industrial Credit and Investment Corporation of India) is
India's largest private sector bank in market capitalization and second largest overall in terms of
assets. Bank has total assets of about USD 100 billion (at the end of March 2008), a network of
over 1,399 branches, 22 regional offices and 49 regional processing centres, about 4,485 ATMs
(at the end of September 2008), and 24 million customers (at the end of July 2007). ICICI Bank
offers a wide range of banking products and financial services to corporate and retail customers
25

through a variety of delivery channels and specialised subsidiaries and affiliates in the areas of
investment banking, life and non-life insurance, venture capital and asset management. (These
data are dynamic.) ICICI Bank is also the largest issuer of credit cards in India.

[1]

. ICICI Bank

has got its equity shares listed on the stock exchanges at Kolkata and Vadodara, Mumbai and the
National Stock Exchange of India Limited, and its ADRs on the New York Stock Exchange
(NYSE).
The Bank is expanding in overseas markets and has the largest international balance sheet among
Indian banks. ICICI Bank now has wholly-owned subsidiaries, branches and representatives
offices in 18 countries, including an offshore unit in Mumbai. This includes wholly owned
subsidiaries in Canada, Russia and the UK, offshore banking units in Bahrain and Singapore, an
advisory branch in Dubai, branches in Belgium, Hong Kong and Sri Lanka, and representative
offices in Bangladesh, China, Malaysia, Indonesia, South Africa, Thailand, the United Arab
Emirates and USA. Overseas, the Bank is targeting the NRI (Non-Resident Indian) population in
particular.
ICICI reported a 1.15% rise in net profit to Rs. 1,014.21 crore on a 1.29% increase in total
income to Rs. 9,712.31 crore in Q2 September 2008 over Q2 September 2007.
1955: The Industrial Credit and Investment Corporation of India Limited (ICICI) was
incorporated at the initiative of World Bank, the Government of India and representatives of
Indian industry, with the objective of creating a development financial institution for providing
medium-term and long-term project financing to Indian businesses. Mr.A.Ramaswami Mudaliar
is elected as the first Chairman of ICICI Limited.
ICICI emerges as the major source of foreign currency loans to Indian industry. Besides
funding from World Bank and other multi-lateral agencies, ICICI was also among the
first Indian companies to raise funds from international markets.
1956: ICICI declared its first dividend, of 3.5%.
1958: Mr.G.L.Mehta appointed the second Chairman of ICICI Ltd.
1960: ICICI building at 163, Backbay Reclamation, inaugurated.
1961: The first West German loan of DM 5 million from Kredianstalt obtained.
26

1967: ICICI made its first debenture issue for Rs.6 crore, which was oversubscribed.
1969: The first two regional offices set up in Calcutta and Madras.
1972: ICICI becomes the second entity in India to set up merchant banking services.
Mr. H. T. Parekh appointed the third Chairman of ICICI.
1977: ICICI sponsored the formation of Housing Development Finance Corporation and
manages its first equity public issue.
1978: Mr. James Raj appointed the fourth Chairman of ICICI.
1979: Mr.Siddharth Mehta appointed the fifth Chairman of ICICI.
1982: ICICI became the first ever Indian borrower to raise European Currency Units.
ICICI commences leasing business.
1984: Mr. S. Nadkarni appointed the sixth Chairman of ICICI.
1985: Mr. N.Vaghul appointed the seventh Chairman and Managing Director of ICICI.
1986: ICICI became the first Indian institution to receive ADB Loans.
ICICI, along with UTI, set up Credit Rating Information Services of India Limited,
India's first professional credit rating agency.
ICICI promotes Shipping Credit and Investment Company of India Limited.
The Corporation made a public issue of Swiss Franc 75 million in Switzerland, the first
public issue by any Indian entity in the Swiss Capital Market.
1987: ICICI signed a loan agreement for Sterling Pound 10 million with Commonwealth
Development Corporation (CDC), the first loan by CDC for financing projects in India.
1988: Promoted TDICI - India's first venture capital company.
1993: ICICI Securities and Finance Company Limited in joint venture with J. P. Morgan set up.
ICICI Asset Management Company set up.
1994: ICICI Bank set up.
27

1996: ICICI Ltd became the first company in the Indian financial sector to raise GDR.
SCICI merged with ICICI Ltd.
Mr. K.V.Kamath appointed the Managing Director and CEO of ICICI Ltd
1997 : ICICI Ltd was the first intermediary to move away from a single prime rate structure to a
three-tier prime rates structure and introduced yield-curve-based pricing.
The name "The Industrial Credit and Investment Corporation of India Ltd" changed to
"ICICI Ltd."
ICICI Ltd. announced the takeover of ITC Classic Finance.
1998: A new logo symbolizing the common corporate identity for the ICICI Group was
introduced.
ICICI announced takeover of Anagram Finance.
1999 : ICICI launched retail finance - car loans, home loans and loans for consumer durables.
ICICI becomes the first Indian company to get listed on the NYSE through an issue of
American Depositary Shares.
2000 : ICICI Bank became the first commercial bank from India to get its stock listed on the
NYSE.
ICICI Bank announces merger with Bank of Madura.
2001: The Boards of ICICI Ltd and ICICI Bank approved the merger of ICICI Ltd. with ICICI
Bank.
2002: ICICI Ltd merged with ICICI Bank Ltd to create Indias second-largest bank in terms of
assets.
ICICI assigned higher than "Sovereign" rating by Moodys.
ICICI Bank launched Indias first CDO (Collateralised Debt Obligation) Fund named
Indian Corporate Collateralised Debt Obligation Fund (ICCDO Fund).
"E-Lobby", a self-service banking centre and a first of its kind in India, is inaugurated in
Pune.
ICICI Bank launched Private Banking.
28

A 1,100-seat Call Centre for Customer Care by phone and e-mail was set up in
Hyderabad.
ICICI Bank Home Shoppe, the first-ever permanent aggregation and display of housing
projects in the county, launched in Pune.
ATM-on-Wheels, Indias first mobile ATM, launched in Mumbai.
2003: The first Integrated Currency Management Centre launched in Pune.
ICICI Bank announced the setting up of its first-ever offshore branch in Singapore.
The first offshore banking unit (OBU) at SEEPZ Special Economic Zone, Mumbai, was
launched.
ICICI Banks representative office inaugurated in Dubai.
Representative office set up in China.
ICICI Banks UK subsidiary launched.
Indias first ever "Visa Mini Credit Card", a credit card 43% smaller in dimensions was
launched.
A subsidiary of ICICI Bank was set up in Canada.
Temasek Holdings acquired 5.2% stake in ICICI Bank.
ICICI Bank became the market leader in retail credit in India.
2004: Max Money, a home loan product that offers the dual benefit of higher eligibility and
affordability to a customer, introduced.
Mobile banking service in India launched in association with Reliance Infocomm.
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 awards recognizing 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.
29

ICICI Bank introduced 8 to 8 Banking wherein all the branches of the Bank would
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.
2005: First rural branch and ATM launched in Uttar Pradesh at Delpandarwa, Hardoi.
"Free for Life" credit cards launched wherein annual fees of all ICICI Bank Credit Cards
were waived off.
ICICI Bank and Visa jointly launched mChq a revolutionary credit card on the mobile
phone.
Private Banking Masters 2005, a nationwide Golf tournament for high networth 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 to retail investors
for its follow-up offer.
2006: ICICI Bank became the first Indian bank to issue hybrid Tier-1 perpetual debt in the
international markets.
ICICI Bank subsidiary set up in Russia.
Introduced a new product - NRI smart save Deposits a unique fixed deposit 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 conducted on the field. A lowcost solution, this became an effective delivery option for ICICI Banks micro-finance
institution partners.
Financial counseling centre Disha launched. Disha provides free credit counseling,
financial planning and debt management services.
Bhoomi puja conducted for a regional hub in Hyderabad, Andhra Pradesh.
30

2007: 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 raised Rs 20,000 crore (approx $5 billion) from domestic and international
markets through a follow-on public offer.
ICICI Banks GBP 350 million international bond offering marked the inaugural deal in
the sterling market from an Indian issuer and also the largest deal in the sterling market
from Asia.
Launched Indias first ever jewellery card in association with jewellery major Gitanjali
Group.
ICICI Bank became the first bank in India to launch a premium credit card -- The Visa
Signature Credit Card.
The foundation stone for a regional hub in Gandhinagar, Gujarat was laid.
ICICI Bank introduced SME Toolkit, an online resource centre, to help small and
medium enterprises start, finance and grow their business.
ICICI Bank signed a multi-tranche dual currency US$ 1.5 billion syndication loan
agreement in Singapore.
ICICI Bank became the first private bank in India to offer both floating and fixed rate on
car loans, commercial vehicles loans, construction equipment loans and professional
equipment loans.
In a first-of-its-kind, nation wide initiative to attract bright graduate students to pursue a
careers in banking, ICICI Bank launched the "Probationary Officer Programme".
Launched Bank@Home services for all savings and current account customers residing in
India
ICICI Bank Eurasia LLC inaugurated its first branch at St Petersburg, Russia.
2008: ICICI Bank enters USA, launches its first branch in New York
ICICI Bank enters Germany, opens its first branch in Frankfurt
ICICI Bank launched iMobile, a breakthrough innovation in banking where practically all
Internet banking transactions can now be done easily on the mobile phone.

31

ICICI Bank concluded India's largest ever securitization transaction of a pool of retail
loan assets aggregating to Rs. 48.96 billion (equivalent of USD 1.21 billion) in a multitranche issue backed by four different asset categories. It is also the largest deal in Asia
(ex-Japan) in 2008 till date and the second largest deal in Asia (ex-Japan and Australia)
since the beginning of 2007.
ICICI Bank launches ICICIACTIVE-Banking Interactive Service - along with DISH TV,
which will allow viewers to see information about the Bank's products and services and
contact details on their DISH TV screens.
ICICI Bank and British Airways launch a co-branded credit card, designed to earn
cardholders accelerated reward points with every British Airways flight or by spending
on everyday purchases

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
32

Trade services
FXonline
SME services
Online taxes
Custodial services

1.3 Research objective:

To study whether the customers are satisfied with their services among ICICI
bank and SBI bank
To know about the Customer preferences among ICICI and SBI bank
To give Suggestions to improve the services

1.4 Review of literature:

The banking sector in India has made remarkable progress since the economic reforms in 1991.
New private sector banks have brought the necessary competition into the industry and
spearheaded the changes towards higher utilization of technology, improved customer service
and innovative products. Customers are now becoming increasingly conscious of their rights and
are demanding more than ever before. The recent trends show that most banks are shifting from a
product-centric model to a customer-centric model as customer satisfaction has become one
of the major determinants of business growth. In this context, prioritization of preferences and
close monitoring of customer satisfaction have become essential for banks. Keeping these in
mind, an attempt has been made in this study to analyze the factors that are essential in
influencing the investment decision of the customers of the public sector banks. For this purpose,
Factor Analysis, which is the most appropriate multivariate technique, has been used to identify
the groups of determinants. Factor analysis identifies common dimensions of factors from the
observed variables that link together the seemingly unrelated variables and provides insight into
the underlying structure of the data. Secondly, this study also suggests some measures to
formulate marketing strategies to lure customers towards banks.

1.5 Key Words:

Bank:
33

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
Internet but can also use special programs called clients downloaded to the mobile device.

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 or building 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 clerk or bank teller. On most 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
34

date or CVC (CVV). Security is provided by the customer entering a personal identification
number (PIN).
Using an ATM, customers can access their bank accounts in order to make cash withdrawals (or
credit card cash advances) and check their account balances as well as purchasing mobile cell
phone prepaid credit. ATMs are known by various other names including automated banking
machine, money machine, bank machine, cash machine, hole-in-the-wall, cashpoint, Bancomat
(in various countries in Europe and Russia), Multibanco (after a registered trade mark, in
Portugal), and Any Time Money (in India).

35

RESEARCH
METHODOLOGY

2.1 Sampling design:

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

36

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.

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.

Sample size
Ghauri (2002) stated that sample size depend on the desired precision from the estimate.
Precision is the size of the estimating interval when the problem is one of estimating a
population parameter. This research selects 60 respondents as the sample size due to
limited of time by asking them that they 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 plan:
The researcher is going to collect the data from the ATMS and also by visiting the bank.

37

2.2 Pilot Study:

A pilot study can refer to many types of experiments, but generally the goal of study is to
replicate the full scale experiment, but only on a smaller scale.
A pilot is often used to test the design of the full-scale experiment. The design can then be
adjusted in time. This can turn out to be valuable: should anything be missing in the pilot, it can
be added to the experiment and chances are that the full-scale (and more expensive) experiment
will not have to be re-done.

Validity:
The ability of a scale or a measuring instrument to measure what it is intended to measure
can be termed as the validity of the measurement. Validity can be measured through several
methods like face validity, content validity, criterion related validity and construct validity. For
this comparative study the researcher has taken the face validity.

Face validity:
Face validity refers to the collective agreement of the experts and researchers on the
validity of the measurement scale. The researcher has gave the questionnaire to the experts in
banking field.

Reliability:
In reliability the researcher has adopted the alpha method. The reliability for the SBI bank
ATM service is .630.It shows that the question regarding to SBI ATM service is reliable. And for
the internet banking service is .767. And for the mobile banking service is .896. And for the core
banking system is .902. If the reliability result is .6 or above .6 the data is reliable. And for this
study the data is reliable because all the service are above .6.

2.3 Research methodology:

Sources of data:

The data is basically primary in nature

38

It was obtained from the customers

Data Collection Method:

Our communication approach was basically structured questioning, that is personal
interview with the aid of printed questionnaires.

Data Analysis:
Appropriate statistical analysis will be adopted. The data will be tabulated and analyzed.

2.4 Limitations of the Study:

The study is limited to a particular branch of SBI and ICICI bank.
Since the time is less the researcher has taken a sample of 100 people and it will not
reveal the whole population of a country.

39

DATA ANALYSIS
&INTERPERTATION

40

Data Analysis and Interpretation:

The following information contains the data interpretation of the questionnaires. The
respondents responses for the questions have been interpreted and a finding has been made
based on the respondents responses.

Frequency table for the demographic details of the SBI respondents

Table 3.1
AGE OF THE RESPONDENTS
Frequency

Percent

25YRS-35YRS

12

38.7

36YRS-45YRS

16.1

46YRS-55YRS

16.1

ABOVE 55YRS

25.8

Total

30

100

41

Graph: 3.1

Interpretation:
From the above table 38.7% respondents are belonging to the age category of 25yrs-35yrs. And
16.1% respondents are belonging to the category of 36yrs-45yrs and 46yrs-55yrs. And 25.8%
respondents are belonging to the category of above 55yrs.

42

Table 3.2
GENDER OF THE RESPONDENTS
Frequency

Percent

FEMALE

15

48.4

MALE

15

48.4

Total

30

100

Graph: 3.2

43

Interpretation:
From the above table 48.4% respondents are belonging to the category of female.
And the remaining 48.4% respondents are belonging to the category of male.

44

Table 3.3
EDUCATIONAL OUALIFICATION OF THE RESPONDENTS

Frequency

Percent

SCHOOL

9.7

UG

29.0

PG

14

45.2

PROFESSIONAL
COURSE
M.phil/phd

9.7

3.2

Total

30

100

Graph 3.3

45

Interpretation:
From the above table 9.7% of respondents are belonging to the category of school
and professional course. And 29.0% of respondents are belonging to the category
of UG. And 45.2% of respondents are belonging to the category of PG. And 3.2%
of respondents are belonging to the category of M.phil/phd.

46

Table 3.4
OCCUPATION OF THE RESPONDENTS

Frequency

Percent

SALARIED PERSON

25

80.6

PROFESSIONALS

3.2

SUPERVISOR

3.2

MANAGERIAL

10.0

Total

30

100

47

Graph 3.4

Interpretation:
From the above table 80.6% of respondents are falling under the category of
salaried person. And 3.2% of respondents are falling under the category of
professionals and supervisor. And 10% of respondents are belonging to the
category of managerial.

48

Table 3.5
INCOME LEVEL OF THE RESPONDENTS
Frequency

Percent

Rs.5,000-Rs.15,000
Rs.15,001-Rs.25,000
Rs.25,001-Rs.35,000
Above Rs.45,000

17
8
4
1

54.8
25.8
12.9
3.2

Total

30

100

Graph 3.5

Interpretation:
49

From the above table 54.8% of respondents are falling under the income range
between Rs.5, 000-Rs.15, 000. And 25.8% are falling under the income range
between Rs.15, 001-Rs.25, 000. And 12.9% of respondents are falling under the
income range between Rs.25, 001-Rs.35, 000. And 3.2% of respondents are falling
under the income range between Above Rs.45, 000.

50

Table 3.6
REASON TO CHOOSE THE SERVICE

EFFICIENT CUSTOMER
SERVICE
TIME SAVING
TRANSCATION COSTS
TECHNOLOGY
MORE ATMS
Total

Frequency
14

Percent
45.2

8
3
1
4
30

25.8
9.7
3.2
12.9
100

Graph 3.6

51

Interpretation:
From the above table 45.2% of respondents are saying that the reason to choose
SBI is they are providing efficient customer service. And 25.8% of respondents are
saying that the reason to choose SBI is they are reducing our waiting time. And
9.7% of respondents are saying that the reason to choose SBI is Transaction costs.
And 3.2% of respondents are saying that the reason to choose SBI is Technology.
And 12.9% of respondents are saying that the reason to choose SBI is they are
provided more atm facility.

52

Table 3.7
TYPE OF SERVICE PREFER THE MOST
Frequency

Percent

ATM SERVICE

19

61.3

INTERNET BANKING

9.7

MOBILE BANKING

9.7

CORE BANKING
SYSTEM
Total

16.1

30

100

Graph 3.7

Interpretation:
From the above table 61.3% of respondents prefer the ATM service. And 9.7% of
respondents are preferred the internet banking and mobile banking. And 16.1% of
respondents prefer the core banking system.
Frequency table for the demographic details of the ICICI respondents
53

Table 3.8
AGE OF THE ICICI RESPONDENTS
Frequency

Percent

25 YRS-35 YRS

29

96.7

ABOVE 55 YRS

3.3

Total

30

100

Graph 3.8

Interpretation:
54

From the above table 96.7% of respondents are falling under the age group of
25yrs-35yrs. And 3.3% of respondents are falling under the group of above 55yrs.

55

Table 3.9
GENDER OF THE ICICI RESPONDENTS
Frequency

Percent

FEMALE

12

40

MALE

18

60

Total

30

100

Graph 3.9

Interpretation:
From the above table 40% of respondents are belonging to the female category.
And 60% of respondents are belonging to the male category.
56

Table 3.10
EDUCATIONAL LEVEL OF ICICI RESPONDENTS
Frequency

Percent

UG

6.7

PG

21

70.0

PROFESSIONALS

20.0

M.Phil/Ph.D

3.3

Total

30

100

57

Graph:

Interpretation:
From the above table 6.7% of respondents are belonging to the category of UG.
And 70% of respondents are belonging to the category of PG. And 20% of
respondents are belonging to the category of professionals. And 3.3% of
respondents are belonging to the category of M.Phil/Ph.D.
Table 3.11
58

OCCUPATION OF THE ICICI RESPONDENTS

Frequency

Percent

SALARIED PERSON

23

76.7

BUSINESS MAN

10.0

PROFESSIONALS

10.0

MANAGERIAL

3.3

Total

30

100

Graph 3.11

59

Interpretation:
From the above table 76.7% of respondents belong to the category of salaried
person. And 10% of respondents are belonging to the category of businessman and
professionals. And 3.3% of respondents are belonging to the category of
managerial.

60

Table 3.12
INCOME LEVEL OF THE ICICI RESPONDENTS

Rs.5,000-Rs.15,000
Rs.15,001-Rs.25,000
Rs.25,001-Rs.35,000
Rs.35,001-Rs.45,000
Above Rs.45,000
Total

Frequency
16
2
9
2
1
30

61

Percent
53.3
6.7
30.0
6.7
3.3
100

Graph 3.12

Interpretation:
From the above table 53.3% of respondents are falling under the income level of
Rs.5, 000-Rs.15, 000. And 6.7% of respondents are falling under the income level
of Rs.15, 001-Rs.25, 000 and Rs.35, 001-Rs.45, 000. And 30% of respondents are
falling under the income level of Rs.25, 001-Rs.35, 000. And 3.3% of respondents
are falling under the income level of above Rs.45, 000.

62

Table 3.13
REASON FOR CHOOSING ICICI SERVICES

EFFICIENT
CUSTOMER SERVICE
EFFICIENT
COMPLAINTS
HANDLING
TIME SAVING
TRANSACTION COSTS
TECHNOLOGY
RELIABLE
Total

Frequency
8

Percent
26.7

26.7

4
2
4
4
30

13.3
6.7
13.3
13.3
100

63

Graph 3.13

Interpretation:
From the above table 26.7% of respondents are saying that the reason to choose
ICICI is they are providing efficient customer service and efficient complaint
handling. And 13.3% of respondents are saying that the reason to choose ICICI is
they are reducing our waiting time, technology and reliable. And 6.7% of
respondents are saying that the reason to choose ICICI is Transaction costs.

64

Table 3.14
TYPE OF SERVICES PREFER THE MOST
Frequency

Percent

ATM SERVICE

13

43.3

INTERNET BANKING

30.0

MOBILE BANKING

13.3

CORE BANKING
SYSTEM
Total

13.3

30

100

65

Graph 3.14

Interpretation:
From the above table 43.3% of respondents prefer the ATM service. And 30% of
respondents are preferred the internet banking. And 13.3% of respondents prefer
the core banking system and mobile banking.

66

Cross Tabulation and chi- Square Test:

The following table below is cross tabs and chi- square test for the demographic details for the
SBI respondents. For the cross tabulation and chi- square the researcher has taken only education
and reason to the service. And the other one is occupation and type of service they prefer the
most.

Table 3.15
EDUCATIONAL OUALIFICATION OF THE RESPONDENTS * REASON
TO CHOOSE THE SERVICE Cross tabulation

REASON TO CHOOSE THE SERVICE

EFFICIENT
CUSTOMER
SERVICE

TIME
SAVING

TRANSCATION
COSTS

TECHNOLOGY

SCHOOL

6.7%

3.3%

.0%

UG

13.3%

10%

PG

13.3%

PROFESSIONAL
COURSE
M.phil/phd
Total

MORE
ATMS

Total

.0%

.0%

10%

3.3%

.0%

3.3%

30%

13.3%

6.7%

3.3%

10%

46.7%

10%

.0%

.0%

.0%

.0%

10%

3.3%

.0%

.0%

.0%

.0%

3.3%

46.7%

26.7%

10.0%

3.3%

13.3%

100.0%

67

Interpretation:
From the above table 6.7% of respondents are falling under the education level of school has
chosen the efficient customer service in SBI. And

68

Graph 3.15

69

Table 3.15
Chi-Square Test -I
Hypothesis:
Ho: There is no significant relationship between the educational qualification of the
respondents and the reason to choose the service.
Ha: There is a significant relationship between the educational qualification of the
respondents and the reason to choose the service.

Pearson ChiSquare

Value

df

Asymp. Sig. (2sided)

8.739

16

.924

Interpretation:
From the above table the calculated chi-square statistic in this case is .924. Since the calculated
chi-square is above 0.05. The null hypothesis is rejected and the alternate hypothesis is accepted.
So there is a significant relationship between the educational qualification of the respondents and
the reason to choose the service.

70

Table 3.16
OCCUPATION OF THE RESPONDENTS * TYPE OF SERVICE PREFER
THE MOST Cross tabulation

TYPE OF SERVICE PREFER THE MOST

ATM
SERVICE

INTERNET
BANKING

MOBILE
BANKING

CORE
BANKING
SYSTEM

Total

SALARIED
PERSON

53.3%

3.3%

6.7%

20%

83.3%

PROFESSIONALS

.0%

3.3%

.0%

.0%

3.3%

SUPERVISOR

3.3%

.0%

.0%

.0%

3.3%

MANAGERIAL

6.7%

3.3%

.0%

.0%

10%

Total

63.3%

10%

6.7%

20%

100%

71

Graph 3.16:

Interpretation:
From the above table 43.3% of respondents prefer the ATM service. And 30% of
respondents are preferred the internet banking. And 13.3% of respondents prefer
the core banking system and mobile banking.

72

Table 3.16
Chi-Square Test - II
Hypothesis:
Ho:

There is no significant relationship between the occupation of the respondents and the
type of service they prefer the most.

Ha:

There is no significant relationship between the occupation of the respondents and the
type of service they prefer the most.

Pearson ChiSquare

Value

df

Asymp. Sig. (2sided)

13.186

.154

Interpretation:
From the above table the calculated chi-square statistic in this case is .154. Since the calculated
chi-square is below 0.05. The null hypothesis is accepted and the alternate hypothesis is rejected.
So there is no significant relationship between the occupation of the respondents and the type of
service they prefer the most.

73

The following table below is cross tabs and chi- square test for the demographic
details for the ICICI respondents. For the cross tabulation and chi- square the
researcher has taken only education and reason to the service. And the other one is
occupation and type of service they prefer the most.

74

Table 3.17
EDUCATIONAL LEVEL OF ICICI RESPONDENTS * REASON FOR
CHOOSING ICICI SERVICES Cross tabulation
REASON FOR CHOOSING ICICI SERVICES
EFFICIENT
CUSTOMER
SERVICE

EFFICIENT
COMPLAINTS
HANDLING

TIME
SAVING

TRANSACTION
COSTS

TECHNOLOGY

RELIABLE

Total

UG

.0%

.0%

.0%

6.7%

.0%

.0%

6.7%

PG

13.3%

26.7%

10%

.0%

6.7%

13.3%

70%

PROFESSIONAL
COURSE

10%

.0%

3.3%

.0%

6.7%

.0%

20%

M.PHIL/PHD

3.3%

.0%

.0%

.0%

.0%

.0%

3.35

TOTAL

26.7%

26.7%

13.3%

6.7%

13.3%

13.3%

100%

75

Graph 3.17

76

Table 3.17
Chi-Square Test - I
Hypothesis:
Ho: There is no significant relationship between the educational qualification and the
reason for choosing the service.
Ha: There is a significant relationship between the educational qualification and the
reason for choosing the service.

Pearson ChiSquare

Value

df

Asymp. Sig. (2sided)

40.268

15

.000

Interpretation:
From the above table the calculated chi-square statistic in this case is .000. Since the calculated
chi-square is below 0.05. The null hypothesis is accepted and the alternate hypothesis is rejected.
So there is no significant relationship between the educational qualification of the respondents
and the reason for choosing the service..

Table 3.18
77

OCCUPATION OF THE ICICI RESPONDENTS * TYPE OF SERVICES

PREFER THE MOST Cross tabulation

TYPE OF SERVICE PREFER THE MOST

ATM
SERVICE

INTERNET
BANKING

MOBILE
BANKING

CORE
BANKING
SYSTEM

Total

SALARIED
PERSON

36.7%

20%

13.3%

6.7%

76.7%

BUSINESS MAN

3.3%

3.3%

.0%

3.3%

10%

PROFESSIONALS

3.3%

3.3%

.0%

3.3%

10%

MANAGERIAL

.0%

3.3%

.0%

.0%

3.3%

Total

43.3%

30%

13.3%

13.3%

100%

78

Graph 3.18

Table 3.18

79

Chi-Square Test - II
Hypothesis:
Ho: There is no significant relationship between the occupation of the respondents and
the type of service they prefer the most.
Ha: There is a significant relationship between the occupation of the respondents and
the type of service they prefer the most.

Pearson ChiSquare

Value

df

Asymp. Sig. (2sided)

5.974

.743

Interpretation:
From the above table the calculated chi-square statistic in this case is .743. Since the calculated
chi-square is above 0.05. The null hypothesis is rejected and the alternate hypothesis is accepted
So there is a significant relationship between the occupation of the respondents and
the type of service they prefer the most.

80

FINDINGS
AND
RECOMMENDATIONS

81

Findings:
Sum Of the respondents to choose the SBI bank is because the bank is proving more
ATM facility to the customers.
And many of the respondents are saying the reason to choose the services of the SBI
bank is because they are good in efficient customer service.
And the income level of the respondents who are having an account in SBI bank falling
under the income level of Rs. 5,000 Rs.15.000.
The age group of 25yrs 35yrs respondents mostly is having an account in SBI bank.
The both gender are equally having an account in SBI bank.
And many of the respondents are not aware of the many services rendered by the SBI
bank. The few are deposit of cash in ATM, request for cheque book in ATM, end of the
day balance in mobile, etc.

Sum Of the respondents to choose the ICICI bank is because the bank is more
reliable to the customers.

And many of the respondents are saying the reason to choose the services of the
ICICI bank is because they are good in efficient customer service and efficient complaint
handling.

And the income level of the respondents who are having an account in ICICI bank
falling under the income level of Rs. 5,000 - Rs.15.000.

The age group of 25yrs - 35yrs respondents mostly is having an account in ICICI bank.

The male gender is mostly having an account in ICICI bank.

And many of the respondents are not aware of the many services rendered by the
ICICI bank. The few are deposit of cash in ATM, request for cheque book in ATM, end
of the day balance in mobile, etc.

82

Recommendation:
Since many of the respondents are not aware of there key services. The bank has to take
some initiatives.
The bank can post a list of services that they are rendered to the customers inside the bank
Premises.
And they can post demo of all these services in their bank website.
They can concentrate more on the respondents are falling under the age group 25yrs 35yrs.
The SBI bank can concentrate on customer complaints handling.
The ICICI bank can concentrate on the female gender.
The bank can also send a post to there customers by informing there services and how to
proceed with that and all details they can mention it in the post.

83

84

CONCLUSION

85

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.

86

APPENDICS

87

BIBLIOGRAPHY:
Research Methodology
-

ICFAI Publication

S.P.Gupta Statistics Book.

Websites:

www.ezine@rticles.com

www.googlesearch.com
www.iupindia.org
www.ebscohostsearch.com
www.emeraldinsight.com
www.scribd.com

88

Questionnaire
Personal details
1. Name:
2. Age: a) 25yrs- 35 yrs b) 36 yrs - 45yrs

c) 46 55 yrs d) above 55

yrs
3. Gender: a) Male b) Female
4. Educational Qualification: a) Illiterate b) School c) UG d) PG
e) Professional Course

f) Others

5. Occupation: a) House wife b) Students c) Salaried person

d) Business man e) Professionals f) Supervisor
g) Managerial h) pensioner
6. Income level:
a) Rs.5,000 Rs.15,000 b) Rs.15,001-Rs.25,000
c) Rs.25,001- Rs.35,000 d) Rs.35,001-Rs.45,000
e) Above Rs. 45,000
7. In which bank do you have an account?
a) ICICI bank b) SBI bank
8. What is the reason to choose the services of the bank?
a) Efficient customer service b) efficient complaints handling
c) Time saving d) transaction costs e) technology
f) Others _________ pls specify

89

9. What type of services do you prefer the most?

a) ATM service b) Internet Banking

c) Mobile Banking

d) Core banking system e) Others _____________ pls specify

Customer service questionnaire
Please use (/) mark to give your responses for the following questions
1=strongly disagree, 2= disagree, 3= neutral, 4= agree, 5= strongly agree
S.no

1 2 3 4 5

ATM Service
I am facing problems in withdrawing cash from

ATM.
I am facing problems like

ATM.
ATM services are useful for me to deposit cash

and cheques
ATM services are useful for me to request for

cheque book
ATM services are useful for me to get the enquiry

statement of my account.
Internet Banking
Internet banking helps me to transfer funds from

the bank to the personalized transactions

Internet banking saves me time for the banking

transactions
Internet banking helps me in bill payments

insufficient cash in

90

4
5
1

Internet banking secures the money transactions

Internet banking helps in online trading
Mobile banking
Mobile banking is useful for me to know the end

of day account balance.

Mobile banking is useful for me to know the

cheque details
Mobile banking is useful for me to know the

Debit/credit above certain limit in my account.

Mobile banking is useful for me to Stop

5
6

inward/outward cheques.
Mobile banking is useful for my bill payments
Mobile banking helps me to know about the

debit/credit details
Mobile banking provides me a support for

ticketing, recharging mobiles etc.

Core Banking system
Core banking system helps me to transfer funds

from different branches

Core banking system makes me convenient to

know about the deposit details

Core banking system helps me to protect my

personal information
Core banking system helps me for the ATM

service transactions
Core banking system helps me for the internet
banking transactions

91

92