“A comparative study of the Financial Performance of SBI and ICICI bank”

A Project report
Submitted in PARTIAL fulfillment of the requirements
Of B.Com (A/F) under Nagaland University

Submitted to: Submitted by:

Miss Ami Jain (Supervisor) Ranju Kumari Jaiswal

Assistant professor B.Com (A/F)
Dept. of Commerce UniversityRoll No CH13190064
S.D. Jain Girl’s college Regd. No-
Dimpaur, Nagaland. S.D. Jain Girl’s college
Dimpaur, Nagaland.

CONTENTS
S.NO TOPIC PAGE NO.

1 TITLE OF PROJECT

2 CERTIFICATE

3 DECLARATION

4 ACKNOWLEDGEMENT

5 ABSTRACT

6 INTRODUCTION OF SBI BANK

7 INTRODUCTION OF ICICI BANK

8 OBJECTIVE OF THE STUDY

9 RESEARCH METHODOLOGY

10 LIMITATION OF THE STUDY

11 LITERATURE REVIEW

12 DATA COLLECTION

13 ANALYSIS AND INTERPRETATION

14 FINDINGS AND CONCLUSION

15 REFERENCE

16 QUESTIONARRIE

CERTIFICATE
This is to certify that the project report entitled “A comparative study of the financial
comparison of SBI and ICICI bank” is submitted by Ranju kumari Jaiswal in fulfillment
of the requirement for the award of degree of B.Com (A/F) in S.D. Jain girl’s college
under Nagaland University Isa record of the candidate’s own work carried out under my
supervision. The matter embodied in this project is original and not used for any other
purpose.

Date: Supervisor:

DECLARATION
This is to certify that the project report entitled “A comparative study of the financial
comparison of SBI and ICICI bank” is submitted in fulfillment of the requirement for
the award of degree of B.Com (A/F) in S.D. Jain girl’s college under Nagaland
University, Lumami, Nagaland. The work is original and due acknowledgement has
been made in the text to all other material used.

Date: Name of Student: Ranju Kumari Jaiswal

Approved by:

(Supervisor)

ACKNOWLEDGEMENT
The success and final outcome of this project required a lot of guidance and assistance
from many people and I am extremely fortunate to have got all this along the
completion of my project work. Whatever I have is only due to such guidance and
assistance and I will not forget to thank them.
I respect and thank Miss Ami Jain, for giving me an opportunity to do the project work
of “A comparative study of the financial comparison of SBI and ICICI bank” and
providing us all support and guidance which made me complete this project on time. I
am extremely grateful to him for providing such great support and guidance though he
had busy schedule. I am extremely grateful to all those person who have positively
helped me and customers who respond my questionnaire, around whom the whole
project cycle revolves.

Name : Ranju Kumari Jaiswal

Roll No. 44

N.U Roll No. CH13190064

ABSTRACT
Banking Sector plays an important role in economic development of a country. The
banking system of India is featured by a large network of bank branches, serving many
kinds of financial services of the people. The State Bank of India, popularly known as
SBI is one of the leading bank of public sector in India. SBI has 14 Local Head Offices
and 57 Zonal Offices located at important cities throughout the country. ICICI Bank is
second largest and leading bank of private sector in India. The Bank has 2,533 branches
and 6,800 ATMs in India. The purpose of the study is to examine the financial
performance of SBI and ICICI Bank, public sector and private sector respectively. The
research is descriptive and analytical in nature. The data used for the study was entirely
secondary in nature. The present study is conducted to compare the financial
performance of SBI and ICICI Bank on the basis of ratios such as credit deposit, net
profit margin etc. The period of study taken is from the year 2010-11 to 2014-15. The
study found that SBI is performing well and financially sound than ICICI Bank but in
context of deposits and expenditure ICICI bank has better managing efficiency than
SBI. Based on the study, it can be said that SBI have an extensive operation than ICICI
Bank.

LIST OF TABLES AND FIGURES WITH PAGE NUMBER

S. NO TITLE PAGE NO
 1 Table 1.1 Credit deposit ratio
Fig. no. 1.1 Credit deposit ratio
2 Table 1.2 Interest expenses to total expenses
Fig.no.1.2 Interest expenses to total expenses
3 Table 1.3 Interest income to total income
Fig.no.1.3 Interest income to total income
4 Table 1.4 Other income to total income
Fig.no.1.4 Other income to total income
5 Table-1.5 Net profit margin
Fig. no.1.5 Net profit margin
6 Table no.1.6 Net worth ratio
Fig.no.1.6 Net worth ratio
7 Table 1.7 Growth of profit
Fig.no.1.7 Growth of profit
8 Table 1.8 Growth in total income
Fig.no.1.8 Growth in total income
9 Table 1.9 Total expenditure
Fig.no.1.9 Total expenditure
10 Table 1.10-Total advances
Fig.no.1.10 Total advances
11 Table 1.11 Total deposits

Fig. no.1.11 Total deposits Table

LITERATURE REVIEW

1. Dr. Jayesh Pravinchandra Vora, BBA,M.Com, Ph.D. [November 2013] made a

comparative study of financial performance of Bank of Baroda and Punjab National
 Bank from 2007-08-2011-12 and found that Punjab National Bank is performing better
than Bank of Baroda.
2. Ashwini Kumar Mishra et. Al (2013) concluded that private sector banks are at
the top of the list with their performance in terms of soundness being best and public
sector bank will head towards convergence faster than private sector banks.
3. Dr. K. Madhusudhana Rao, Associate professor, L. university, Green fields,
Andhra Pradesh [June 2014] made a comparative analysis on the performance of state
Bank of India and HDFC from 2008-09 to 2012-13 and found that State Bank of India
is performing well and sound than HDFC but in context of deposits and expenditure
both State bank of India and HDFC has better managing efficiency.
4. Pooja Sharma, Hantala, Assistant Professor, Department of MBA,E-Max Group
of Institutions Ambala[February 2014] made a comparative analysis of the financial
performance of ICICI bank and State Bank of India from 2008-09 to 2012-13 and found
that State Bank of India is performing better than ICICI bank as it is able to generate
more loan from its deposit to its customers.

INTRODUCTION
The banking industry plays an important role in the economic development of a
country. It supplies the lifeblood-money that supports and fosters growth in all the
industries. Growth of the banking sector is measured by the increase in the number of
banks’ branches, deposits, credit, etc. In analyzing the banking sector, it indicates the
direction in which the country’s economy is moving. India has about 88 commercial
banks including 31 private banks, 27 public sector banks, and 38 foreign banks and in
total, 53,000 bank branches, and 17,000 ATMs are servicing the nation. Public sector
banks dominate the segment with 75 per cent of the total assets of the industry held by
them. State Bank of India (SBI) and ICICI Bank are the two largest banks in India in
public and private sector.
State Bank of India (SBI)
SBI is the oldest bank of India and India’s largest commercial bank, which is a
government, owned bank was established in 1806. The bank provides a wide array of
banking products through their effective network not only in India but also overseas.
The bank has about 18,266 branches, including 4,724 branches of its five Associate
Banks, and is also accountable for one-fifth of the loans of India. It has about 8500
ATMs across the nation.
ICICI Bank
This is the second largest private sector bank in India having 2,552 branches and 7,440
ATMs spread across the country. It is among the top commercial banks of India
providing a wide range of banking services through varied delivery channels. Besides
offering high-end banking facilities such as Internet banking, Tele Banking, and Mobile
Banking, ICICI also plays a pivotal role in the domains of investment banking, venture
capital and asset management, and life and non-life insurance. The bank spreads its
wings in 18 countries across the world including UK, Canada, Russia, and others.

Statement of the problem

Performance and efficiency of commercial bank are the key element of efficiency and
efficacy of countries financial system. The broad objective of the banking sector
reforms in India has been to increase efficiency and profitability of the banks. Prior to
banking reforms, the industry was a near monopoly dominated by public sector bank.
Therefore this study attempts to apply profitability ratio, solvency ratio and
management efficiency ratio on SBI and ICICI Bank in order to compare their
efficiency and solvency position.

OBJECTIVE OF THE STUDY

I. To compare the financial performance of State Bank of India and ICICI Bank.
ii. To know and compare the profitability position of State Bank of India and ICICI
Bank.
iii. To know and compare the managerial efficiency of State Bank of India and ICICI
Bank.
iv. To offer findings and suggestions to enhance the financial performance of State Bank
of India and ICICI Bank.

RESEARCH METHODOLOGY
5.1 Research Design
Descriptive Research Design is used for the study and it is essentially a fact-finding
approach. It aims to explain the characteristics of an individual or group characteristics
and to determine the frequency with the same things occurs.
5.2 Sample Design
Deliberate sampling technique is used for the study. This sampling method involves
purposive or deliberate selection of particular units of the world for constituting a
sample that represents the population.
5.3 Selection of the Sample Units
Banking sector in India is considered one of the fastest growing financial institutions in
the world. Using purposive sample, State Bank of India and ICICI Bank were selected
as the sample units for the study. The sample units selected were considered one of the
successful units in the banking sector.
5.4 Data Collection
The data were collected through annual report from sources that are secondary in nature
such as internet, magazines, websites, books, and journals.
5.5 Period of study
This study covers a period of five years, i.e., from 2010-11 to 2014-15
5.6 Tools Applied
The data collected were moderated for the study. The major tools applied for the
analysis of the data are ratios, percentages, and t-test.

10

PERIODITY OF STUDY
The project “A Study on comparative financial performance of SBI and ICICI
Bank” was undertaken during the period of 45 days as a part of my internal
examination.

11

LIMITATION OF THE STUDY

Due to constraints of time and resources, the study is likely to suffer from certain
limitations. Some of these are mentioned here under so that the findings of the study
may be understood in a proper perspective. The limitations of the study are:
 The study is based on the secondary data and the limitation of using secondary
data may affect the results.
 The secondary data was taken from the annual reports of the SBI and ICICI
Bank. It may be possible that the data shown in the annual reports may be
window dressed which does not show the actual position of the banks.
Financial analysis is mainly done to compare the growth, profitability and financial
soundness of the respective banks by diagnosing the information contained in the
financial statements. Financial analysis is done to identify the financial strengths and
weaknesses of the two banks by properly establishing relationship between the items of
Balance Sheet and Profit & Loss Account. It helps in better understanding of banks
financial position, growth and performance by analyzing the financial statements with
various tools and evaluating the relationship between various elements of financial
statements.

12
FOR THIS PURPOSE THE FOLLOWING PARAMETERS HAVE BEEN
STUDIED

1) Credit deposit ratio.

2) Interest expenses to total expenses.
3) Interest income to total income.
4) Other income to total income.
5) Net profit margin.
6) Net worth ratio.
7) Percentage change in net profit.
8) Percentage change in total income.
9) Percentage change in total expenditure.
10) Percentage change in deposit.
11) Percentage change in advances.

13
CREDIT DEPOSIT RATIO:

Credit deposit ratio is the proportion of loan asset created by a bank from the deposit
received. Credits are the loan and advances granted by the bank. In other words, it is the
amount lend by the bank to a person or an organization which is recovered later on,
interest is charged from the borrower.

TABLE 1.1 - CREDIT DEPOSIT RATIO

(IN PERCENT)
YEAR SBI ICICI
2010-11 77.57 84.99
2011-12 74.97 91.44
2012-13 73.56 90.04
2013-14 76.32 87.81
2014-15 78.50 92.23
MEAN 76.184 89.302
CGR 1.19 8.51
Source: Annual Reports of SBI and ICICI from 2010-11 to 2014-15
FIG. NO. 1.1- CREDIT DEPOSIT RATIO

14
Table 1.1 depicts that over the course of five financial periods of study the mean of
Credit Deposit Ratio in ICICI was higher (89.302%) than in SBI (76.184%). But the
Compound Growth Rate in SBI lowers 1.19% than in ICICI (8.51%). In case of SBI the
credit deposit ratio was highest in 2014-15 and lowest in 2012.13. But in case of ICICI
Credit Deposit Ratio was highest in 2014-15and lowest in 2010-11. This shows that
ICICI Bank has created more loan assets from its deposits as compared to SBI.

INTEREST EXPENSES TO TOTAL EXPENSES:-

Interest Expenses to Total Expenses reveals the expenses incurred on interest in

proportion to total expenses. Banks accepts deposits from savers and pay interest on
these accounts. This payment of interest is known as interest expenses. Total expenses
include the amount spent in the form of staff expenses, interest expenses, overhead
expenses and other operating expenses etc.

TABLE 1.2:- INTEREST EXPENSES TO TOTAL EXPENSES

(IN PERCENT)
YEAR SBI ICICI
2010-11 61.85 66.135
2011-12 63.27 64.10
2012-13 61.62 60.71
2013-14 54.93 60.70
2014-15 57.90 65.19
MEAN 59.9 65.36
CGR -6.38 -1.46

Source: Annual Reports of SBI and ICICI from 2010-11 to 2014-15.

15

FIG.NO.1.2:- INTEREST EXPENSES TO TOTAL EXPENSES

The table 1.2 shows that the ratio of interest expenses to total expenses in SBI was
highly volatile it increased from 61.85 per cent to 63.27 per cent during the period
2010-11 to 2011-12. Afterwards it was decreased till 2013-14 and then again increased
to 57.90 per cent. The ratio of interest expenses to total expenses in ICICI was also
decreased from 66.135 per cent to 64.10 per cent during the period 2010-11 to 2011-12.
It remain stable from 2011-12 to 2012-2013 but Further it was increased to 65.19 per
cent in 2014-15. It has been found that the share of interest expenses in total expenses
was higher in case of SBI as compared to ICICI, which shows that people preferred to
invest their savings in SBI than ICICI.

16

INTEREST INCOME TO TOTAL INCOME:-

Interest Income to Total Income shows the proportionate contribution of interest income
in total income. Banks lend money in the form of loans and advances to the borrowers
and receive interest on it. This receipt of interest is called interest income. Total income
includes interest income, non-interest income and operating income.

TABLE 1.3:-INTEREST INCOME TO TOTAL INCOME IN SBI AND ICICI

(IN PERCENT)
YEAR SBI ICICI

2010-11 83.89 77.61

2011-12 83.40 79.29

2012-13 82.58 77.90

2013-14 84.49 78.51

2014-15 88.12 80.92

MEAN 84.49 78.84

CGR 5.04 4.26

Source: Annual Reports of SBI and ICICI from 2010-11 to 2014-15.

17

FIG.NO.1.3 INTEREST INCOME TO TOTAL INCOME IN SBI AND ICICI

The table 1.3 represents that the ratio of interest income to total income in SBI and
ICICI both is quite stable and volatile over the years. The growth rate of SBI is 5.04
while that of ICICI is 4.26. Thus, the proportion of interest income to total income in
SBI was higher than that of ICICI, which shows that people preferred SBI to take loans
and advances.

18

OTHER INCOME TO TOTAL INCOME:

Other income to total income reveals the proportionate share of other income in total
income. Other income includes non interest income and operating income. Total income
includes interest income, non interest income and operating income.

TABLE 1.4:-OTHER INCOME TO TOTAL INCOME IN SBI AND ICICI

(IN PERCENT)
YEAR SBI ICICI

2010-11 16.10 22.38

2011-12 16 20.70

2012-13 17 22.09

2013-14 16 21.48

2014-15 11 19.07

MEAN 15.22 21.44

CGR -31.6 -14.7

Source: Annual Reports of SBI and ICICI Bank from 2010-11 to 2014-15

19

FIG.NO.1.4 OTHER INCOME TO TOTAL INCOME IN SBI AND ICICI

The table 1.4 shows that the ratio of other income to total income was decreased from
16.10 per cent in 2010-11 to 11.00 per cent in 2014-15 in case of SBI. However, the
share of other income in total income of ICICI was also decreased from 22.38 per cent
in 2010-11 to 19.07 per cent 2014-15. The table shows that the ratio of other income to
total income was relatively higher in ICICI (21.44%) as compared to SBI (15.22%)
during the period of study.

20

NET PROFIT MARGIN:-

Net Profit Margin reveals the financial results of the business activity and efficiency of
management in operations. The table 5.8 shows the net profit margin in SBI and ICICI
during the Period 2010-11 to 2014-15.

TABLE-1.5:-NET PROFIT MARGIN IN SBI AND ICICI

(IN PERCENT)
YEAR SBI ICICI

2010-11 12.64 11.81

2011-12 13.11 11.45

2012-13 10.54 13.64

2013-14 8.55 17.52

2014-15 9.73 17.45

MEAN 10.91 14.37

CGR 23.02 47.7

Source: Annual Reports of SBI and ICICI from 2010-11 to 2014-15

21

FIG. NO.1.5 NET PROFIT MARGIN IN SBI AND ICICI

The table 1.5 reveals that the ratio of net profits to total income of ICICI was varied
from 11.81 per cent to 17.45 percent whereas in case of SBI it is not stable. It increased
to 13.11 percent from 12.64 percent in 2011-12 then further decreased to 10.54 percent
in 2012-13 and 8.55 percent in 2013-14 and finally increased to 9.73 percent in 2014-15
during the period of 5 years of study. However, the net profit margin was higher in
ICICI (14.37%) as compared to SBI (10.91%) during the period of study. But it was
continuously decreased from 2010-11 to 2014-15 in ICICI. Thus, the ICICI has shown
comparatively lower operational efficiency than SBI.

22
NET WORTH RATIO:-
Net worth Ratio is used for measuring the overall efficiency of a firm. This ratio
establishes the relationship between net profit and the proprietor’s funds.

TABLE 1.6 NET WORTH RATIO

(IN PERCENT)
YEAR SBI ICICI
2010-11 13.70 8.94
2011-12 15.74 7.58
2012-13 13.91 7.79
2013-14 12.84 9.35
2014-15 14.36 10.70
MEAN 14.11 8.87
CGR 4.87 19.68
Source: Annual Reports of SBI and ICICI from 2010-11 to 2014-15

FIG.NO.1.6 NET WORTH RATIO

It is clear from the table 1.6 that the net worth ratio of SBI was increased from 13.70
per cent to 14.36 per cent during 2007-08 to 2011-12, and decreased in 2009-10 and
2010-2011. Whereas the ratio was increased from 8.94 per cent to 10.70 percent in
ICICI. The table showed that the net worth ratio was higher in SBI (14.11%) as
compared to ICICI (8.87%) during the period of study, which revealed that SBI has
utilized its resources more efficiently as compared to ICICI.
GROWTH OF PROFIT:-
Net profit Ratio is used for measuring the profitability of the firm. It is calculated by
dividing net profit by net sales multiplied by 100. It establishes the relationship between
the net profit and sales.
TABLE 1.7 GROWTH OF PROFIT IN SBI AND ICICI
(IN CRORES)
YEAR SBI ICICI

PROFIT % CHANGE PROFIT % CHANGE

2010-11 6729 NILL 4157.73 NILL

2011-12 9121 35.5 3758.13 -9.61

2012-13 9161 49 4024.98 7.10

2013-14 8265 -9.8 5151.38 27.9

2014-15 11707 42 6465.26 25.50

MEAN 8996.6 4711.49

CGR 73.97 55.49

Source: Annual Reports of SBI and ICICI from 2010-11 to 2014-15

24
FIG.NO.1.7 GROWTH OF PROFIT IN SBI AND ICICI
The table 1.8 highlights that the mean value of net profit was higher in SBI (Rs. 8996.6
crores) as compared to that in ICICI (Rs. 4711.9 crores) during the period of study.
Further the growth rate of Net Profits was also higher in SBI (73.97%) than that in
ICICI (55.49%) during the study period. The table also shows that the annual growth
rate of profit in SBI was highest in the year 2012-13 and was negative (-9.8%) in the
year 2013-14. In ICICI, the annual growth rate of profit was highest in the year 2013-
14(27.9%) and was negative in the year 2011-12 (-9.61%).

25
TOTAL INCOME:-
The total income indicates the rupee value of the income earned during a period. The
higher value of total income represents the efficiency and good performance.

TABLE 1.8 GROWTH IN TOTAL INCOME OF SBI AND ICICI

(IN CRORES)
YEAR SBI ICICI

INCOME %CHNAGE INCOME %CHANGE

2010-11 58348.74 NILL 39667.19 NILL

2011-12 76479.78 31 39210.31 -1.15

2012-13 85962.07 12.3 32999.36 -15.8

2013-14 96329.45 12.06 33082.96 0.25

2014-15 120872.90 25.4 41450.75 25.2

MEAN 87598.58 37282.114

CGR 107.15 4.49

Source: Annual Reports of SBI and ICICI from 2010-11 to 2014-15.

26
FIG.NO.1.8 GROWTH IN TOTAL INCOME OF SBI AND ICICI
The table 1.9 highlights that the mean value of total income was higher in SBI (Rs.
87,598.58 Crores) as compared to that in ICICI (Rs. 37282.114 crores) during the
period of study. However the rate of growth regarding total income was higher in SBI
(107.15 %) than in ICICI (4.49 %) during the period of study

27

TOTAL EXPENDITURE:-
The total expenditure reveals the proportionate share of total expenditure spent on the
development of staff, interest expended and other overheads.
TABLE 1.9 TOTAL EXPENDITURE OF SBI AND ICICI
(IN CRORES)
YEAR SBI ICICI

EXPENDITUR %CHNAG EXPENDITUR %CHANG

E E E E
2010- 51619.622 NILL 35509.47 NILL
11
2011- 67358.55 30.4 35452.17 0.16
12
2012- 76796.02 14.01 28974.37 -18.2
13
2013- 88959.12 15.83 27931.58 -3.59
14
2014- 109186.99 22.73 34985.50 25.25
15
MEA 78784.06 32570.61
N
CGR 111.52 -1.47

Source: Annual Reports of SBI and ICICI from 2010-11 to 2014-15.

FIG.NO.1.9 TOTAL EXPENDITURE OF SBI AND ICICI

The table 1.10 discloses that the mean value of total expenditure was higher in SBI (Rs.
78,784.06 crores) as compared to that in ICICI (Rs. 32570.61 crore) during the period
of study. But the rate of growth regarding expenditure in ICICI was (-1.47 %) than that
in SBI (111.52%) during the same period. It is clear that ICICI is successful in
decreasing their total expenditure as compared to SBI. The table also highlights that the
annual growth rate of expenditure in SBI was highest (30.04) in the year 2011-12 and
was lowest (14.01) in the year 2012-13. In ICICI, the annual growth rate of expenditure
was negative in the year 2012-13 and 2013-14 i.e. (-18.20) and (-3.59) respectively.
Hence it is clear that ICICI is more efficient as compared to SBI in terms of managing
expenditure.

ADVANCES:-
Advances are the credit facility granted by the bank. In other words it is the amount
borrowed by a person from the Bank. It is also known as “Credit ‟ granted where the
money is disbursed and recovery of which is made later on.
TABLE 1.10- TOTAL ADVANCES OF SBI AND ICICI
(IN CRORES)
YEAR SBI ICICI

ADVANCES %CHNAGE ADVANCES %CHANGE

2010-11 416768.20 NILL 225616.08 NILL

2011-12 542503.20 30.16 218310.85 -3.25

2012-13 631914.15 16.48 181205.60 -16.6

2013-14 756719.45 19.75 216365.90 19.40

2014-15 867578.89 14.6 253727.66 17.26

MEAN 646578.89 224645

CGR 108.16 12.45

Source: Annual Reports of SBI and ICICI from 2010-11 to 2014-15.

29
FIG.NO.1.10- TOTAL ADVANCES OF SBI AND ICICI
Table 1.9 presents the mean of Advances of SBI was higher (646,578.89) as compared
to mean of Advances of ICICI (224,645). Rate of growth was also higher in SBI
(108.16 %) than in ICICI (12.45%). Table also shows the per cent Change in Advances
over the period of 5 years. In case of SBI Advances were continuously increased (with a
decreasing trend) over the period of study. However Advances in ICICI were decreased
till 2009-10 but these were increased in the subsequent years.

30
DEPOSITS:-
Deposit is the amount accepted by bank from the savers in the form of current deposits,
savings deposits and fixed deposits and interest is paid to them.

TABLE 1.11-TOTAL DEPOSITS OF SBI AND ICICI

(IN CRORES)
YEAR SBI ICICI

DEPOSIT %CHNAGE DEPOSIT %CHANGE

2010-11 537403.94 NILL 244431.05 NILL
2011-12 742073.13 38.08 218347.82 -10.6
2012-13 804116.23 8.36 202016.60 -7.40

2013-14 933932.81 16.14 225602.11 11.6

2014-15 104647.36 11.7 255499.96 13.2

MEAN 812234 229179

CGR 94.20 4.52

Source: Annual Reports of SBI and ICICI from 2010-11 to 2014-15

31
Fig. NO.1.11 TOTAL DEPOSITS OF SBI AND ICICI
Table 1.11 presents the mean of Deposits of SBI was higher (812,234) as compared to
mean of deposits of ICICI (229,179%). However the rate of growth was higher in SBI
(94.20%) than that in ICICI (4.52%) during the period of study. Table also shows the
per cent Change in Deposits over the period of 5 years. In case of SBI Deposits were
continuously fluctuating over the period of study. However deposits in ICICI were
decreased in 2011-12 and 2012-13 but these were increased in the year 2013-14 and
2015-15 with 11.6% and 13.2% respectively.

32

FINDINGS AND CONCLUSIONS:-

The study found that the mean of Credit Deposit Ratio in ICICI was higher (89.302 %)
than in SBI (76.184%). This shows that ICICI Bank has created more loan assets from
its deposits as compared to SBI. The share of interest expenses in total expenses higher
in ICICI (63.36 %) as compare to SBI (59.99 %) and the proportion of interest income
to total income was higher in case of SBI(84.49%) as compared to ICICI (78.84%),
which shows that people prefer ICICI to invest their savings and SBI to take loans &
advances. The ratio of other income to total income was relatively higher in ICICI
(21.44 %) as compared to SBI (15.22 %). The Net Profit Margin of ICICI is higher
(14.37 %) whereas in SBI it was (10.99 %), which shows that ICICI has shown
comparatively better operational efficiency than SBI. The growth rate of net profit is
73.97% in SBI which is higher than ICICI which is 55.49%. This shows that SBI
performed well as compared to ICICI. The mean value of total income was higher in
SBI (87,598.58) as compared to that in ICICI (37,282.114). Net worth ratio was also
higher in SBI (14.11 %) than ICICI (8.87 %), which revealed that SBI has utilized its
resources more efficiently as compared to ICICI. The mean value of total expenditure
was higher in SBI (Rs. 78,784.06 crores) as compared to that in ICICI (Rs.32,570.61)
and the combined growth rate of expenditure was negative (-1.47%) in the case of
ICICI whereas in SBI it is 111.52%. Deposits in SBI were continuously increased.
However deposits in ICICI were decreased (with a declining trend) till 2012-13 but
these were increased in the subsequent years. In case of SBI Advances were
continuously increased (with a decreasing trend) with the combined growth rate of
(108.16 %), However Advances in ICICI were decreased (with a declining trend) till
2012-13 but these were increased thereafter with combined growth rate of (12.45 %). It
shows that ICICI has suffered with funds or avoid providing advances through 2010-11
to 2012-13. Hence, on the basis of the above study or analysis banking customer has
more trust on the public sector banks as compared to private sector banks.

ANALYSIS AND INTERPRETATION

 1. Where do you have your account?

BANK No of Respondents Percentage

SBI 20 67
ICICI 10 33

It shows the maximum numbers of people have their bank account in SBI and less
number of people has their bank account in ICICI Bank.

2.Which of the following type banking account do you have?

ACCOUNT TYPE(SBI) NO OF RESPONDENTS %

CURRENT 10 50
SAVINGS 5 25
JOINT 3 15
LOAN 2 10

ACCOUNT TYPE(ICICI) NO OF RESPONDENTS %

CURRENT 4 40
SAVINGS 2 20
JOINT 3 30
LOAN 1 10
 ICICI
CURRENT SAVINGS
JOINT LOAN

10%
30% 40%
20%

By seeing the graph, we can find that maximum number of people have current account
in SBI I.e. 50%. Savings account 25%, Joint account 15 %, and loan account 10%.
Whereas in ICICI 40% people have current account, 20 % have saving account, 30%
have joint account and 10 % people have loan account.

Q3. Does your bank create any recreation facility for the customers?

Response(S No. of %
BI) customer
YES 17 85
NO 3 15

Response(ICI No. of %
CI) customer
Yes 7 7
0
no 3 3
0

SBI CUSTOMERS ICICI CUSTOMERS

YES NO YES NO

15%
30%

70%
85%
Not much difference is shown regarding recreational facilities to the customer between
two banks. However SBI has the leading role so far.
39
Q4. Do you think that your bank caters all your banking needs?

RESPONSE(SBI) NO OF CUSTOMERS %
YES 17 85
NO 3 15

RESPONSE(ICICI) NO OF CUSTOMERS %
YES 8 80
NO 2 20

SBI PERCENTAGE ICICI PERCENTAGE

YES NO YES NO

15% 20%

85% 80%

Not much difference is shown regarding bank caters all your banking needs to the
customer. However SBI has the leading role so far.

Q5. Which bank would you chose regarding transaction?

Bank No.of Respondent Percentage

SBI 23 76
ICICI 7 24
There is much difference is shown regarding transaction between two banks therefore
SBI has far better than ICICI Bank.

Q6. Which bank has ease of access (both branch and ATM)?

Bank No.of Respondent Percentage

SBI 17 85
ICICI 3 15

The graph shows that out of two banks SBI Bank provides more ease of access
regarding Branch and ATM.

7. Are you satisfied with the service provided by the bank?

Response (SBI) No.of Respondent Percentage

Very Satisfied 1 5
Satisfied 17 85
Somewhat 1 5
Satisfied
Not Satisfied 1 5
Response (ICICI) No.of Respondent Percentage
Very Satisfied - -
Satisfied 5 50
Somewhat 4 40
Satisfied
Not Satisfied 1 10

sbi
very satisfied satisfied
somewhat satisfied not satisfied

5% 5% 5%

85%

icici
very satisfied satisfied somewhatsatisfied not satisfied

10%

50%
40%
By seeing this graph we can find that SBI Customers are more satisfied than the ICICI
bank customers.

8. Do they charge unnecessarily for not maintaining minimum balance in your account?
Response(SBI) No. Of Customers Percentage %
Yes 3 15
No 17 85

Response(ICICI) No. Of Customers Percentage %

Yes 8 80
No 2 20

sbi icici
yes no

15%
yes no
20%

85% 80%

By seeing this graph we can find that the ICICI Bank charge unnecessarily for not
maintaining minimum balance in your account than SBI Bank.
 QUESTIONARRIE (Survey on customer’s satisfaction)

The performance of bank also depends upon the satisfaction level of the customers.
Therefore a survey was conducted on the customers of SBI and ICICI bank using a
questionnaire. The questionnaire is a well-structured of 10 questions conducted on 30
customers of each bank. Questionnaire is on the study of the comparison of financial
performance of SBI and ICICI bank.
Name:
Occupation:
Address:
Sex :

Q1. Where do you have your account?

a. SBI b. ICICI

Q2. Which of the following type banking account do you have?

a. Current account b. Savings account
b. Joint account d. Loan account
Q3. Does your bank create any recreation facility for the customers?
a. Yes b. No
Q4. Do you think that your bank caters all your banking needs?
a. Yes b. No
Q5. Which bank would you chose regarding transaction?
a. SBI b. ICICI
Q6. Which bank has ease of access (both branch and ATM)?
a. SBI b. ICICI
Q7. Are you satisfied with the service provided by the bank?
 a. Very satisfied b. Satisfied
b. Somewhat satisfied d. Not satisfied
Q8. Do they charge unnecessarily for not maintaining minimum balance in your
account?
a. Yes b. No

REFERENCES:-
 Maheshwari & Maheshwari, Banking Law and Practices, Himalaya Publishing
Pvt Ltd, Allahabad, pp.152.
 Pandey, I.M. Financial Management, Vikas Publishing. House Pvt. Ltd. 2002, pp.
633.
 Study material, Financial Management Unit 17, IGNOU, New Delhi. pp.6
 Trend and progress of banking, RBI, pp.22-23
 Gaylord A Freeman, “ The Problem of Adequate bank Capital”, quoted by
Howard D. Crosse in his book on Management Policies for Commercial Banks,
pp. 158.
 Development Research Group Study, No. 22, Department of Economic Analysis
and Policy, Reserve Bank of India, Mumbai September 20, 2000.
 Financial year report of SBI 2007-08 to 2011-12.
 SBI bulletin publication 2012.
 Financial year report of ICICI Bank 2007-08 to 2011-12.
 ICICI Bank bulletin publication 2012
 RBI statistical table relating to banks 2011-12.

Information Memorandum
 SBI and ICICI Bank annual report 2007-12.