Project Report

(Project Semester Jan-June 2019)

“(A Comparative study of customer awareness about services offered by ICICI Bank Ltd
and SBI Ltd.)”

Submitted by
(Shruti Somani)
Student ID: 16BBAN124

Under the Guidance of

Faculty Internship Guide: Dr. Somya Choubey

Designation: Assistant Professor-1

Department of Management

JECRC UNIVERSITY, JAIPUR

 ACKNOWLEDGEMENT

I am grateful to thank our Dean and Head of Department Prof.(Dr.) Rajeev Jain
and Dr. Ruchi Goyal for giving me this great opportunity to do my project.

I also extent my thanks to Dr.Somya Choubey, 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.
 DECLARATION

I hereby declare that the project entitled “A Comparative study of customer awareness
about services offered by ICICI Bank Ltd and SBI Ltd” has been completed by me. I

assure that this project is unique and has not been reproduced or copied from any
other sources.

(Shruti Somani)
(16BBAN124)

Faculty Guide
 Table of contents

S. No. Topic Page No.

1 Introduction 1-29

1.1 Overview of banking Industry 2-7

1.2 Company Profile 8-27

1.3 Research objective 27

1.4 Review of literature 27-28

1.5 Key Words 28-29

2 Research Methodology 30-33

2.1 Sampling Design 31-32

2.2 Pilot Study 32

2.3 Research Methodology 33

2.4 Limitations of the Study 33

3 Data Analysis and Interpretation 34-74

4 Findings, Recommendations and Conclusion 75-77

5 Appendices 78-82
INTRODUCTION

1
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
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

2
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
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

3
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:

Number of banks Authorized capital Paid-up Capital

Years
that failed (Rs. Lakhs) (Rs. Lakhs)

1913 12 274 35

1914 42 710 109

1915 11 56 5

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

4
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, 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
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

5
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 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.
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

6
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.

7
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 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

8
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.

9
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.

10
  State Bank of Bikaner & Jaipur
 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:

Australia
Bahrain
Bangladesh
Belgium
Canada
Dubai
France
Germany
Hong Kong
Israel
Japan
People's Republic of China
Republic of Maldives
Singapore
South Africa

11
 Sri Lanka
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:

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.

12
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.

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 non-profit
activity called Community Services Bankig.

13
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.

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)

14
  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.

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.

15
  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.

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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).

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

17
subsidiaries and 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.

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

18
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.

19
1961: The first West German loan of DM 5 million from Kredianstalt obtained.

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.

20
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.

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.

21
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 India’s second-largest bank in terms of
assets.

ICICI assigned higher than "Sovereign" rating by Moody’s.

ICICI Bank launched India’s 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.

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, India’s 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 Bank’s representative office inaugurated in Dubai.

Representative office set up in China.

ICICI Bank’s UK subsidiary launched.

India’s first ever "Visa Mini Credit Card", a credit card 43% smaller in dimensions was
launched.

22
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.

India’s 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 India’s 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.

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.

23
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 low-cost solution, this
became an effective delivery option for ICICI Bank’s 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.

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.

24
ICICI Bank raised Rs 20,000 crore (approx $5 billion) from domestic and international markets
through a follow-on public offer.

ICICI Bank’s 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 India’s 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.

25
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 multi-tranche 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

26
Business Banking:

 Corporate net banking

 Cash Management
 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

27
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:

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.

28
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
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).

29
 RESEARCH
METHODOLOGY

30
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
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 probability sampling. Zikmund (1997) stated that in non-
probability 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 (2017) 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.

31
Sampling plan:

The researcher is going to collect the data from the ATMs and also by visiting the bank.

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 Cronbach’s 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.

32
2.3 Research methodology:

Sources of data:

 The data is basically primary in nature

 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 Representation:

Representation of data through bar graphs and percentage method has been used.

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.

33
 DATA ANALYSIS
&INTERPERTATION

34
Data Analysis and Interpretation:

The following information contains the data interpretation of the questionnaires. The
respondent’s 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 respondent’s

Table 3.1

AGE OF THE RESPONDENTS

Frequency Percent
25YRS-35YRS 12 38.7
36YRS-45YRS 5 16.1
46YRS-55YRS 5 16.1
ABOVE 55YRS 8 25.8
Total 30 100

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.

35
Graph: 3.1

40

35

30

25
25YRS-35YRS
36YRS-45YRS
20
46YRS-55YRS
ABOVE 55YRS
15

10

0
Frequency Percent

36
Table 3.2

GENDER OF THE RESPONDENTS

Frequency Percent
FEMALE 15 48.4
MALE 15 48.4
Total 30 100

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.

37
Graph: 3.2

50

45

40

35

30
FEMALE
25
MALE
20

15

10

0
Frequency Percent

38
Table 3.3

EDUCATIONAL OUALIFICATION OF THE RESPONDENTS

Frequency Percent
SCHOOL 3 9.7
UG 9 29.0
PG 14 45.2
PROFESSIONAL 3 9.7
COURSE
M.phil/phd 1 3.2
Total 30 100

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.

39
Graph 3.3

50

45

40

35

30

25

20 Frequency

15 Percent

10

40
Table 3.4

OCCUPATION OF THE RESPONDENTS

Frequency Percent
SALARIED PERSON 25 80.6
PROFESSIONALS 1 3.2
SUPERVISOR 1 3.2
MANAGERIAL 3 10.0
Total 30 100

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.

41
Graph 3.4

90

80

70

60

50
Frequency

40 Percent

30

20

10

0
SALARIED PROFESSIONALS SUPERVISOR MANAGERIAL
PERSON

42
Table 3.5

INCOME LEVEL OF THE RESPONDENTS

Frequency Percent
Rs.5,000-Rs.15,000 17 54.8
Rs.15,001-Rs.25,000 8 25.8
Rs.25,001-Rs.35,000 4 12.9
Above Rs.45,000 1 3.2
Total 30 100

Interpretation:

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.

43
Graph 3.5

60

50

40

30
Frequency
Percent
20

10

44
Table 3.6

REASON TO CHOOSE THE SERVICE

Frequency Percent
EFFICIENT CUSTOMER 14 45.2
SERVICE
TIME SAVING 8 25.8
TRANSCATION COSTS 3 9.7
TECHNOLOGY 1 3.2
MORE ATMS 4 12.9
Total 30 100

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.

45
Graph 3.6

50

45

40

35

30

25 Frequency
Percent
20

15

10

0
EFFICIENT TIME SAVING TRANSCATION TECHNOLOGY MORE ATMS
CUSTOMER COSTS
SERVICE

46
Table 3.7

TYPE OF SERVICE PREFER THE MOST

Frequency Percent
ATM SERVICE 19 61.3
INTERNET BANKING 3 9.7
MOBILE BANKING 3 9.7
CORE BANKING 5 16.1
SYSTEM
Total 30 100

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.

47
Graph 3.7

70

60

50

40
Frequency
Percent
30

20

10

0
ATM SERVICE INTERNET MOBILE BANKING CORE BANKING
BANKING SYSTEM

48
 Frequency table for the demographic details of the ICICI respondent’s

Table 3.8

AGE OF THE ICICI RESPONDENTS

Frequency Percent
25 YRS-35 YRS 29 96.7
ABOVE 55 YRS 1 3.3
Total 30 100

Interpretation:

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.

49
Graph 3.8

100

90

80

70

60
25 YRS-35 YRS
50 ABOVE 55 YRS

40

30

20

10

0
Frequency Percent

50
Table 3.9

GENDER OF THE ICICI RESPONDENTS

Frequency Percent
FEMALE 12 40
MALE 18 60
Total 30 100

Interpretation:

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

51
Graph 3.9

60

50

40

Frequency
30 Percent

20

10

0
FEMALE MALE

52
Table 3.10

EDUCATIONAL LEVEL OF ICICI RESPONDENTS

Frequency Percent
UG 2 6.7
PG 21 70.0
PROFESSIONALS 6 20.0
M.Phil/Ph.D 1 3.3
Total 30 100

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.

53
Graph:

70

60

50

40
Frequency
Percent
30

20

10

0
UG PG PROFESSIONALS M.Phil/Ph.D

54
Table 3.11

OCCUPATION OF THE ICICI RESPONDENTS

Frequency Percent
SALARIED PERSON 23 76.7
BUSINESS MAN 3 10.0
PROFESSIONALS 3 10.0
MANAGERIAL 1 3.3
Total 30 100

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.

55
Graph 3.11

80

70

60

50

40
Frequency
30
Percent

20

10

56
Table 3.12

INCOME LEVEL OF THE ICICI RESPONDENTS

Frequency Percent
Rs.5,000-Rs.15,000 16 53.3
Rs.15,001-Rs.25,000 2 6.7
Rs.25,001-Rs.35,000 9 30.0
Rs.35,001-Rs.45,000 2 6.7
Above Rs.45,000 1 3.3
Total 30 100

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.

57
Graph 3.12

60

50

40

30
Frequency
Percent
20

10

58
Table 3.13

REASON FOR CHOOSING ICICI SERVICES

Frequency Percent
EFFICIENT 8 26.7
CUSTOMER SERVICE
EFFICIENT 8 26.7
COMPLAINTS
HANDLING
TIME SAVING 4 13.3
TRANSACTION COSTS 2 6.7
TECHNOLOGY 4 13.3
RELIABLE 4 13.3
Total 30 100

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.

59
Graph 3.13

30

25

20

15

10
Frequency

5 Percent

60
Table 3.14

TYPE OF SERVICES PREFER THE MOST

Frequency Percent
ATM SERVICE 13 43.3
INTERNET BANKING 9 30.0
MOBILE BANKING 4 13.3
CORE BANKING 4 13.3
SYSTEM
Total 30 100

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.

61
Graph 3.14

45

40

35

30

25
Frequency
20 Percent

15

10

0
ATM SERVICE INTERNET MOBILE CORE BANKING
BANKING BANKING SYSTEM

62
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 TIME TRANSCATION TECHNOLOGY MORE

CUSTOMER SAVING COSTS ATMS Total
SERVICE

SCHOOL 6.7% 3.3% .0% .0% .0% 10%

UG 13.3% 10% 3.3% .0% 3.3% 30%

PG 13.3% 13.3% 6.7% 3.3% 10% 46.7%

PROFESSIONAL 10% .0% .0% .0% .0% 10%

COURSE

3.3% .0% .0% .0% .0% 3.3%

M.phil/phd

Total 46.7% 26.7% 10.0% 3.3% 13.3% 100.0%

63
Interpretation:

From the above table 10% of respondents are falling under the education level of school has
chosen the time saving and efficient customer service of SBI. 30% of respondents are falling
under the education level of under graduation has chosen efficient customer service, time saving,
transaction cost and more ATMs of SBI. 46.7% of respondents are falling under the education
level of post graduation has chosen efficient customer service, time saving, transaction cost,
technology and more ATMs of SBI. 10% of respondents are falling under the education level of
professional course has chosen efficient customer service of SBI. 3.3% of respondents are falling
under the education level of phd has chosen efficient customer service of SBI.

Graph 3.15

100.00%

90.00% REASON TO CHOOSE THE

SERVICE EFFICIENT CUSTOMER
80.00%
SERVICE
70.00% REASON TO CHOOSE THE
SERVICE TIME SAVING
60.00%

50.00% REASON TO CHOOSE THE

40.00% SERVICE TRANSCATION COSTS

30.00%
REASON TO CHOOSE THE
20.00% SERVICE TECHNOLOGY

10.00%
REASON TO CHOOSE THE
0.00% SERVICE MORE ATMS

REASON TO CHOOSE THE

SERVICE MORE ATMS Total

64
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.

Value df Asymp. Sig. (2-

sided)
Pearson Chi- 8.739 16 .924
Square

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.

65
Table 3.16

OCCUPATION OF THE RESPONDENTS * TYPE OF SERVICE PREFER

THE MOST Cross tabulation

TYPE OF SERVICE PREFER THE MOST

ATM INTERNET MOBILE CORE Total

SERVICE BANKING BANKING BANKING
SYSTEM

SALARIED 53.3% 3.3% 6.7% 20% 83.3%

PERSON

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%

Interpretation:

From the above table 83.3% of the respondents fall under the occupation of salaried person has
chosen the preferred service as ATM service, internet banking, mobile banking and core banking
system. 3.3% of the respondents fall under the occupation of professionals has chosen the
preferred service as ATM service and internet banking. 3.3% of the respondents fall under the

66
occupation of supervisor has chosen the preferred service as ATM service. 10% of the
respondents fall under the occupation of manager has chosen the preferred service as ATM
service and internet banking.

Graph 3.16:

100.00%

90.00%

80.00%

70.00%
TYPE OF SERVICE PREFER THE
60.00% MOST ATM SERVICE
TYPE OF SERVICE PREFER THE
50.00%
MOST INTERNET BANKING
40.00% TYPE OF SERVICE PREFER THE
MOST MOBILE BANKING
30.00%
TYPE OF SERVICE PREFER THE
20.00% MOST CORE BANKING SYSTEM
TYPE OF SERVICE PREFER THE
10.00% MOST Total
0.00%

67
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.

Value df Asymp. Sig. (2-

sided)
Pearson Chi- 13.186 9 .154
Square

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.

68
 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.

Table 3.17

EDUCATIONAL LEVEL OF ICICI RESPONDENTS * REASON FOR

CHOOSING ICICI SERVICES Cross tabulation

REASON FOR CHOOSING ICICI SERVICES

EFFICIENT EFFICIENT TIME TRANSACTION TECHNOLOGY RELIABLE Total

CUSTOMER COMPLAINTS SAVING COSTS
SERVICE HANDLING

UG .0% .0% .0% 6.7% .0% .0% 6.7%

PG 13.3% 26.7% 10% .0% 6.7% 13.3% 70%

PROFESSIONAL 10% .0% 3.3% .0% 6.7% .0% 20%

COURSE

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%

Interpretation:

From the above table 6.7% of respondents are falling under the education level of UG has chosen
ICICI services because of transaction cost. 70% of respondents are falling under the education
level of PG has chosen ICICI services because of efficient customer service, efficient complaints
handling, time saving, technology, and reliable. 20% of respondents are falling under the
education level of professional course has chosen ICICI services because of efficient customer

69
service, time saving and technology. 3.35% of respondents are falling under the education level
of phd has chosen ICICI services because of efficient customer service.

Graph 3.17

350.00%
300.00%
250.00%
200.00%
150.00%
100.00%
UG
50.00% PG
0.00% PROFESSIONAL COURSE
RELIABLE
TRANSACTION COSTS
EFFICIENT CUSTOMER SERVICE

TIME SAVING

Total
TECHNOLOGY
EFFICIENT COMPLAINTS HANDLING

M.PHIL/PHD
TOTAL

REASON FOR CHOOSING ICICI SERVICES

70
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.

Value df Asymp. Sig. (2-

sided)
Pearson Chi- 40.268 15 .000
Square

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..

71
Table 3.18

OCCUPATION OF THE ICICI RESPONDENTS * TYPE OF SERVICES

PREFER THE MOST Cross tabulation

TYPE OF SERVICE PREFER THE MOST

ATM INTERNET MOBILE CORE Total

SERVICE BANKING BANKING BANKING
SYSTEM

SALARIED 36.7% 20% 13.3% 6.7% 76.7%

PERSON

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%

Interpretation:

From the above table 76.7% of the respondents fall under the occupation of salaried person has
chosen the preferred service as ATM service, internet banking, mobile banking and core banking
system. 10% of the respondents fall under the occupation of businessman has chosen the
preferred service as ATM service, internet banking and core banking system. 10% of the
respondents fall under the occupation of professionals has chosen the preferred service as ATM

72
service, internet banking and core banking system. 3.3% of the respondents fall under the
occupation of manager has chosen the preferred service as internet banking.

Graph 3.18

100.00%

90.00%

80.00%

70.00% TYPE OF SERVICE PREFER THE

60.00% MOST ATM SERVICE
TYPE OF SERVICE PREFER THE
50.00%
MOST INTERNET BANKING
40.00% TYPE OF SERVICE PREFER THE
30.00% MOST MOBILE BANKING
TYPE OF SERVICE PREFER THE
20.00%
MOST CORE BANKING SYSTEM
10.00% TYPE OF SERVICE PREFER THE
MOST Total
0.00%

73
Table 3.18

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.

Value df Asymp. Sig. (2-

sided)
Pearson Chi- 5.974 9 .743
Square

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.

74
 FINDINGS,
RECOMMENDATIONS
AND
CONCLUSION

75
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.

76
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.

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.

77
APPENDICES

78
BIBLIOGRAPHY:

 Research Methodology
C. R. Kothari and Gaurav Garg
 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

79
 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
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

80
 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
1 I am facing problems in withdrawing cash from
ATM.
2 I am facing problems like insufficient cash in
ATM.
3 ATM services are useful for me to deposit cash
and cheques
4 ATM services are useful for me to request for
cheque book
5 ATM services are useful for me to get the enquiry
statement of my account.
Internet Banking
1 Internet banking helps me to transfer funds from
the bank to the personalized transactions
2 Internet banking saves me time for the banking
transactions
3 Internet banking helps me in bill payments
4 Internet banking secures the money transactions

81
5 Internet banking helps in online trading
Mobile banking
1 Mobile banking is useful for me to know the end
of day account balance.
2 Mobile banking is useful for me to know the
cheque details
3 Mobile banking is useful for me to know the
Debit/credit above certain limit in my account.
4 Mobile banking is useful for me to Stop
inward/outward cheques.
5 Mobile banking is useful for my bill payments
6 Mobile banking helps me to know about the
debit/credit details
7 Mobile banking provides me a support for
ticketing, recharging mobiles etc.
Core Banking system
1 Core banking system helps me to transfer funds
from different branches
2 Core banking system makes me convenient to
know about the deposit details
3 Core banking system helps me to protect my
personal information
4 Core banking system helps me for the ATM
service transactions
5 Core banking system helps me for the internet
banking transactions

82
83