TITLE

“A comparative study on customer preferences towards

Nationalized and Private banks with reference to

SBI and ICICI BANK”

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 Table of Content

SL. NO. INDEX PAGE NO.

(i) Executive Summary

Introduction
PART: 1 1.1 Introduction of the study
1.2 About the Industry

Literature Review
PART: 2

Research Methodology

3.1 Title of the Study

3.2 Statement of the problem
PART: 3 3.3 Need of the study
3.4 Objectives
3.5 Research Design
3.6 Limitation

PART: 4 Data Analysis and Interpretation

Findings,

PART: 5 Suggestions

Conclusion

PART: 6 Reference

Annexure:

 Questionnaire


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EXECUTIVE SUMMARY:

Executive Summary This project provides a comprehensive comparison of customer preferences

between private banks, with a focus on ICICI Bank, and nationalized banks, specifically State Bank

of India (SBI). Understanding customer preferences is essential for financial institutions looking to

enhance their services and tailor their offerings to meet diverse customer needs in an evolving

banking landscape marked by increasing competition. The purpose of this research is to find out

what influences customers' choices, how satisfied they are, and the advantages and disadvantages of

each banking model.

The study used data collection methods in a mixed-methods approach. A sample of urban banking

customers were given a structured questionnaire, which made it posbible to collect quantitative data

about their preferences, levels of satisfaction, and service expectations. Customers were given the

opportunity to share their thoughts and experiences with both SBI and ICICI Bank through in-depth

interviews, which were also carried out in order to gather qualitative data. The key findings from the

data analysis highlighted the distinct characteristics that draw customers to each type of bank.

The study found that service quality, product variety, customer service, technological advancements,

and perceived trustworthiness are all important factors in determining customer preferences.

Customers of SBI demonstrated a strong preference for the bank's personalized service, extensive

branch network, and decades of trust. Digital banking services, on the other hand, were favored by

ICICI Bank customers for their technological innovation and ease of use, as well as for their wider

selection of modern-day financial products.

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Customers of SBI reported higher levels of satisfaction than those of the other bank, but they also

expressed a desire for enhanced technological integration. On the other hand, customers of ICICI

Bank were more pleased with digital transactions and customer support, but they were concerned

about the personalization of services. The findings emphasize the need for both banks to modify their

strategies in response to shifting customer expectations, particularly in the areas of personalized

banking experiences and digital transformation.

Strategic recommendations are provided for both SBI and ICICI Bank at the conclusion of this study.

In order to bridge the gap between traditional banking and modern demands, SBI is encouraged to

make investments in digital technology while maintaining its core strength of customer service. Even

as it continues to innovate technologically, ICICI Bank ought to concentrate on enhancing the trust

and relationships it has with its customers in order to guarantee their ongoing loyalty. In a

competitive market, the insights gleaned from this research may provide both banks with a useful

framework for improving their customer engagement strategies and cultivating long-term customer

relationships.

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Introduction to the study

The banking sector is a pivotal component of any economy, serving as the backbone for financial

stability, growth, and development. In India, the banking landscape has undergone significant

transformations over the past few decades, particularly following the liberalization policies initiated

in the early 1990s. These reforms led to the emergence of private banks, enhancing competition and

driving innovation in the financial services industry. The dichotomy between nationalized banks,

such as the State Bank of India (SBI), and private banks like ICICI Bank has become increasingly

pronounced, with each catering to different segments of the market and adopting distinct operational

strategies.

Nationalized banks in India were established with the primary objective of promoting financial

inclusion and serving the needs of the population across rural and semi-urban areas. SBI, as the

largest nationalized bank, has a long history and a vast network of branches, making it a trusted

choice for many customers. The bank's emphasis on stability, reliability, and government backing

resonates with a significant segment of the Indian populace, particularly among older generations

and individuals residing in less urbanized regions.

Conversely, private banks, exemplified by ICICI Bank, have capitalized on technological

advancements and changing customer preferences. These banks typically offer innovative financial

products and services, leveraging digital platforms to enhance customer experience and streamline

operations. The aggresbive marketing strategies and customer-centric approaches adopted by private

banks have attracted a younger, more tech-savvy clientele seeking convenience, personalized

services, and efficient banking solutions.

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About the Industry

The banking industry in India plays a foundational role in supporting the country’s economic

development, providing essential financial services to individuals, businesses, and the government.

The industry has undergone several transformative phases, evolving from a state-controlled system

to a more diversified sector that includes public sector banks, private banks, foreign banks,

cooperative banks, regional rural banks (RRBs), and recently introduced payment banks. Each type

of bank serves specific customer needs and contributes to the country’s financial inclusion and

economic stability goals.

Historically, India’s banking sector began during British rule, with the establishment of the Bank of

Bengal, Bank of Bombay, and Bank of Madras, collectively known as the Presidency Banks. These

banks were later merged to form the Imperial Bank of India, which was restructured as the State

Bank of India (SBI) in 1955. Following independence, the government nationalized major banks in

1969 and 1980 to ensure that banking services reached rural and underserved communities. The goal

was to foster economic inclusion, support agricultural finance, and serve the common public rather

than focusing solely on profitability. These nationalized banks, or public sector banks, became a

cornerstone of India’s financial infrastructure and continue to play a critical role in rural and semi-

urban areas.

Economic liberalization in the early 1990s marked a significant shift, allowing private sector banks

to operate alongside public banks and introducing foreign investment into the banking sector. Private

banks such as ICICI Bank, HDFC Bank, and Axis Bank grew rapidly, capitalizing on technological

advancements and a customer-focused approach. They offer streamlined services, innovation in

digital banking, and customized products, attracting a growing segment of urban and young

customers who value convenience and efficiency. Foreign banks like HSBC, Citibank, and Standard

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Chartered have a more limited presence, focusing on metropolitan areas and providing specialized

services.

Today, the Reserve Bank of India (RBI) serves as the regulatory authority overseeing the banking

sector’s operations and ensuring financial stability. The RBI sets stringent guidelines on capital

adequacy, risk management, and lending practices to maintain systemic security and prevent

financial crises. Additionally, the government’s commitment to financial inclusion has driven

initiatives like the Pradhan Mantri Jan Dhan Yojana (PMJDY), which aims to bring unbanked

individuals into the formal financial system. With PMJDY and other programs, India’s banking

industry has helped millions open savings accounts, access microcredit, and improve financial

literacy, bridging gaps in rural areas and among low-income populations.

In recent years, digital banking has transformed the industry, led by innovations such as the Unified

Payments Interface (UPI), which has made India one of the world’s largest markets for cashless

transactions. Private banks and payment banks, including Paytm Payments Bank and Airtel

Payments Bank, have pioneered user-friendly digital services, appealing to younger, tech-savvy

customers. However, rapid digitalization has also introduced challenges, including cyber threats and

the need for stronger data protection measures.

Despite significant progress, challenges remain, particularly the issue of Non-Performing Assets

(NPAs), which have strained public sector banks. Rising competition from private banks and fintech

also pressures traditional banks to modernize their services. Looking ahead, India’s banking industry

is expected to continue evolving, with a focus on balancing inclusivity and modernization. By

embracing technology, expanding digital access, and reinforcing regulatory frameworks, the Indian

banking sector is poised to cater to the diverse needs of a growing economy, ensuring a more

inclusive and resilient financial future for the nation.

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INFORMATION ABOUT NATIONALIZED AND PRIVATE BANKS

NATIONALIZED BANKS:

Nationalized Banks Financial institutions that are owned and operated by the government are known

as nationalized banks. In 1969, the government of India nationalized 14 major commercial banks

with the intention of bringing the banking industry into line with national interests and expanding

public access to banking services. The essential objective of nationalized banks is to help monetary

improvement by working with monetary consideration and giving credit to need areas like farming,

little enterprises, and provincial turn of events.

In order to reach underserved populations and promote banking services, these banks typically

maintain a substantial branch network, particularly in semi-urban and rural areas. Nationalized

banks, which are entities that are owned by the public and are public entities, place a higher value on

social objectives than they do on making a profit. As a result, they frequently offer their services at

rates of interest that are lower or on terms that are more favorable in order to make them The Reserve

Bank of India (RBI) oversees compliance with national banking standards, ensuring that these banks

effectively serve the public interest. Their operations are tightly regulated by the RBI.

The State Bank of India (SBI), Punjab National Bank (PNB), and Bank of Baroda (BoB) are three

well-known Indian nationalized banks. Through their focus on customer-centric services aimed at

promoting financial inclusion, these organizations play a crucial role in the Indian banking landscape

and contribute to the country's economic stability and development.

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PRIVATE BANKS:

Private Banks, on the other hand, are financial institutions that primarily focus on making a profit

and are owned by private individuals or businesses. In the 1990s, the liberalization of the Indian

economy brought about a significant increase in the number of private banks, which led to a more

competitive banking environment. These banks stand out for putting innovation and customer

satisfaction first. They frequently come up with a wide range of products and services that are

tailored to meet the various requirements of their customers.

Private banks are better able to respond quickly to shifting market conditions and customer

preferences than their nationalized counterparts. They frequently lead in the reception of new

innovations, giving improved computerized financial arrangements that enticement for a more

youthful, educated segment. Private banks have been able to gain a significant share of the market,

particularly in urban areas, thanks to their focus on customer service and technological integration.

Private banks like ICICI Bank, HDFC Bank, and Axis Bank are well-known in India. In addition to

focusing on profitability, these businesses also place an emphasis on cultivating long-term

relationships with their clients and offering individualized services. Private banks continue to be at

the forefront of innovation, shaping the future of banking in India, as the banking landscape

continues to change.

COMPARISON BETWEEN NATIONALIZED AND PRIVATE BANKS

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  Control and Ownership:
Private banks are owned by private entities, whereas nationalized banks are owned by the
government.

 Objectives:
While private banks place an emphasis on profit and customer service, nationalized banks
prioritize social goals and public welfare.

 Innovation:
When compared to nationalized banks, private banks are frequently more creative and
quicker to adopt new technologies.

 Base of Clients:
Private banks frequently target urban, technologically savvy customers, whereas nationalized
banks typically serve a broader demographic, including rural populations.

 Regulatory System:
The Reserve Bank of India oversees both kinds of banks, but nationalized banks may be
subject to additional oversight regarding public accountability.

Because they shape the overall customer experience and influence choices between
nationalized and private banks, these distinctions are essential for analyzing customer
preferences and levels of satisfaction within the banking sector.

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State Bank of India(SBI): State Bank of India (SBI) is India's largest public sector

bank. It was established in 1806 as the Bank of Calcutta and has a long and illustrious

history. SBI is a major player in the Indian banking industry and was nationalized in

1955. It provides a wide range of financial services, including retail, corporate, and

agricultural banking. SBI places an emphasis on financial inclusion and serves a wide

range of demographics in both urban and rural areas. It is well-known for its extensive

branch network and customer-centric approach. While maintaining a strong

commitment to social responsibility, the bank has made significant progress in digital

banking by integrating technology to enhance the customer experience.

ICICI Bank:s ICICI Bank Founded in 1994 as a wholly owned subsidiary of ICICI

Limited, ICICI Bank is one of India's leading private sector banks. Since then, it has

grown into a major player in the banking industry that provides retail, corporate, and

investment banking, among other financial products and services. Digital banking

solutions and technological innovation are hallmarks of ICICI Bank, which serves a

younger, tech-savvy clientele. ICICI Bank strives to provide convenient and effective

banking experiences by implementing a robust online banking platform and placing a

strong emphasis on customer service. It is a major rival in the Indian financial

landscape due to its adaptability and commitment to modern banking practices.

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LITERATURE REVIEW

 Ravi C.S Kundan Basavaraj (2013) have determined that the variety of products and services

to the customers and understand the customer’s needs and investigate the preference and

satisfaction level of customers towards loans, deposits schemes, insurances and value added

services rendered by private and public banks and analyze the customer preference and

satisfaction towards banking services both private and public banks.

 Prof. (Dr.) Dinesh C. Agrawal1 & Sakshi Chauhan (2015) have examined that how much e-

banking used in Public and Private sectors bank in reference to SBI and HDFC bank and to

find the consumer satisfaction in respect of e-banking and the perception of employees for

using e-banking in Public and Private sectors banks and analyze the working style as

comparison between Public and Private sectors banks.

 K.Thanga Glara Dr. C. Eugine Franco (2017) have determined that the factors influencing in

the adoption of E-banking provided by public and private sector banks, identify the level of

satisfaction of customers of public and private sector banks towards their usage of E-banking.

It is finding that the customer satisfaction in using ATM services, the customers of both

sectors of banks are equally satisfied

 Anis Ali1, L.S. Bisht (2018) have examined that to measure satisfaction level of customers of

Public and Private Banks and factors responsible for variation in customers’ satisfaction

between Private and Public banks in India and to know the reasons for responsible for

variations in satisfaction level or dissatisfaction level in public and private banks and know

the factors responsible for the low satisfaction level among the banking customers.

OBJECTIVES
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 To gain insights into customer characteristics by systematically analysing their preferences,

behaviours’, and demographic profiles.

 To examine customer preferences towards nationalized and private banks through a detailed

analysis of their choices, perceptions, and satisfaction levels.

 To assess the level of trust and confidence customers have in nationalized and private banks and

its influence on their banking preferences and long-term relationships.

 To evaluate the range of services provided by both nationalized and private banking sectors.

 To understand which banks among the customers is preferred between SBI and ICICI Bank

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  Research design/methodology

Title of the Study: “A comparative study on customer preferences towards

Nationalized and Private banks with reference to SBI and ICICI BANK”

The need for the study

The need for this study, "A Comparative Study on Customer Preferences Towards Nationalized and

Private Banks with Reference to SBI and ICICI Bank," stems from the dynamic nature of the

banking industry, where understanding customer preferences is pivotal for strategic success.

Nationalized and private banks often operate under distinct models; for instance, SBI, as a

nationalized bank, is recognized for its extensive reach and government-backed stability, while ICICI

Bank, a leading private bank, is known for its innovative, customer-centric approach and advanced

technology. By comparing these two banking giants, the study provides insights into how these

different models influence customer satisfaction, trust, service quality, and preferences.

This research is essential as it sheds light on the evolving expectations of customers, which can aid

banks in enhancing customer satisfaction and retention strategies. Additionally, the findings offer

valuable guidance for policymakers, helping them understand customer sentiments to shape a

balanced financial framework that fosters competition and inclusion. For both SBI and ICICI, the

insights can guide strategy adjustments to better meet customer needs and solidify their market

positions. The study also benefits new entrants in the banking sector by mapping out key factors that

influence customer choices, offering a competitive edge. Finally, this focused analysis addresses

existing research gaps by presenting up-to-date findings specific to the Indian banking context,

enriching the body of knowledge on customer behavior in nationalized versus private banking.

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Descriptive Research: This study will adopt a descriptive research design as it seeks to describe

and analyse customer preferences, satisfaction levels, and factors influencing customer decisions

between nationalized and private banks (SBI and ICICI Bank).

The research will focus on understanding customer behaviour and drawing comparisons between the

two banks based on collected data.

Data collection method

This paper is comparative study on Indias banking sectors Nationalized and private banks with

respect to SBI and ICICI which are leaders in the said segment of the banking industry. In the source

of data is primary and secondary data

Primary data: a well curated set of questions is formed to cover each objective of the study and is

circulated to the general public to collect the data This will involve questions related to service

quality, customer satisfaction, trust, digital services, and grievance handling

Sampling

A random sampling method is used to ensure diversity in respondents based on factors like age,

income, education, and occupation

Sample Size

A sample size of 100-150 respondents, covering customers from both SBI and ICICI Bank, will

provide a sufficient basis for comparison.

Data Collection Mode

Data is collected through online surveys.

Secondary data

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  the secondary data is collected from SBI and ICICI website and annual reports and other

various publications journals and related websites

 Research papers, journal articles, and existing literature on customer preferences in

nationalized and private banks.

 Industry reports and publications on the Indian banking sector

Research Instrument

A structured questionnaire will be the primary research instrument for collecting data. It will include

a:

 Close-ended questions (using Likert scale, multiple choice, and dichotomous questions) to

quantify customer preferences.

Sampling Method

 Target Population: The target population will include current customers of SBI (nationalized)

and ICICI Bank (private) across various demographics.

 Sampling Technique: A stratified random sampling technique is been used to ensure that

different demographic groups (age, gender, income level, occupation) are proportionally

represented in the study. This allow for more meaningful comparisons between customers of

the two banks

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 Limitations

 Sample Size Constraints The sample size may be limited and not fully representative of the
entire customer base of SBI and ICICI, potentially impacting the generalizability of the
results.
 Geographical Limitations The study may be geographically restricted to certain regions or
cities, misbing out on customer preferences in other diverse regions across India, especially
rural versus urban areas.
 Demographic Variability Different age groups, income levels, and educational backgrounds
may have differing preferences. If not adequately represented, this may lead to skewed
results.
 Response Bias might respond in socially desirable ways, particularly when discusbing
preferences for nationalized versus private banks, affecting the authenticity of results.
 Limited Access to Confidential Data Key bank performance metrics, such as internal
customer satisfaction surveys or loyalty metrics, may be confidential, limiting the study’s
data depth.
 Over-reliance on Self-reported Data The study may rely heavily on survey responses, which
can introduce self-reporting bias as participants may exaggerate or understate their
preferences.
 Time Constraints Customer preferences and banking trends change over time; a limited study
period may not capture seasonal variations or long-term shifts in preferences.
 Dynamic Technological Advancements The rapid pace of technological change in banking,
especially in digital services, may mean that findings quickly become outdated as new
technologies are introduced.
 Limited Scope in Service Offerings This research may only focus on certain banking
services, such as retail banking, and might exclude other areas like corporate banking or
investment services, which could influence preferences.
 Generalization of Nationalized and Private Banks Focusing only on SBI as a nationalized
bank and ICICI as a private bank may overlook unique aspects of other banks within each
category, limiting generalizability.
 Regulatory and Economic Changes Government policies, economic changes, or financial
crises occurring during or after the study may affect customer preferences, making results
less applicable over time.
 Language and Cultural Barriers Language or cultural biases may affect survey responses,
particularly if the sample includes customers from diverse linguistic or cultural backgrounds.
 Insufficient Examination of Customer Loyalty Focusing on preferences rather than loyalty
might miss underlying factors that make customers stay long-term, which could provide a
deeper understanding of preferences.
 Difficulty in Measuring Intangible Factors Concepts like trust, security perception, and
service quality are subjective and challenging to measure accurately, potentially affecting
data reliability.
 Inconsistent Customer Experiences Customer experiences may vary widely across different
branches of SBI and ICICI, leading to inconsistent data if not accounted for in the study.
 Focus on Specific Banks May Limit Broader Applicability Focusing solely on SBI and ICICI
may limit the applicability of findings to other nationalized and private banks with different
service models and customer demographics.

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Data analysis

1. Respondents age group

Table 1: representing the age of the sample population

Sl no Response frequency Percentage

1 18-25 33 26.2%

2 26-35 31 24.6%

3 36-45 39 31%

4 46-60 14 11.1%

5 Above 60 9 7.1%

INTERPREATION:

The age demographics of respondents reveal significant insights into banking preferences among

different groups. Notably, the 36-45 age group represents the largest segment at 31%, indicating that

middle-aged consumers are highly engaged and may have distinct financial needs, such as loans and

investments. The younger demographics (18-25 and 26-35) collectively account for over half of the

responses, suggesting a strong interest from these age groups, likely due to their tech-savviness and

evolving financial requirements. In contrast, the lower response rates from the older age groups (46-

60 and above 60) highlight a potential gap in engagement and understanding of their banking needs.

These findings underscore the importance of tailoring banking services and marketing strategies to

cater to the varying preferences across age groups, ensuring that offerings are inclusive and relevant

to all customers

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Graph 1: graph showing responses of individuals of various age group

Data analysis

The data analysis indicates that middle-aged consumers (36-45) are the most engaged

with banking services, while younger age groups (18-35) also show strong interest,

likely due to technological preferences, whereas older age groups (46+) exhibit lower

engagement, suggesting a need for more inclusive banking strategies across age

demographics.

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 2. Respondents’ occupation

Table 2: containing the occupations of the respondents

Sl.no Response frequency Percentage

1 Student 31 24.6%

2 Salaried employee 33 26.2%

3 Self-employed 37 29.4%

4 Retired 20 15.9%

5 unemployed 5 4%

INTERPREATION:

The distribution of responses by occupation indicates diverse engagement across categories, with

self-employed individuals comprising the largest segment at 29.4%. This suggests a notable interest

from those who may require flexible banking solutions for business needs. Salaried employees and

students also make up significant portions, at 26.2% and 24.6%, respectively, underscoring the

importance of services that cater to early-career individuals and young adults. Retired respondents

account for 15.9%, reflecting a potential need for tailored retirement-related services, while the

unemployed group, at 4%, is the smallest segment, likely due to limited banking requirements. These

insights emphasize the need for banks to consider occupational differences when designing and

marketing their services.

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 Graph 2: representing the different occupations of the respondent’s

u n em p l o y ed 5

R e ti r e d 20

S el f-em p l o y ed 37

S al ar i ed em p l o y ee 33

S t u d en t 31

Data analysis

The occupation-based analysis shows that self-employed individuals (29.4%) have the

highest banking engagement, highlighting demand for flexible business-oriented

solutions, while significant portions of salaried employees (26.2%) and students

(24.6%) indicate a need for early-career and youth-targeted services, with lower

engagement among retired (15.9%) and unemployed (4%) groups pointing to

specialized needs for retirement and minimal-banking segments.

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 3. Monthly income of the Respondents

TABLE 3: showing the income of the respondents

Sl.no Response frequency Percentage

1 Below 250000 31 24.6%

2 25000-50000 33 26.2%

3 50000-100000 40 31.1%

4 100000-200000 19 15.1%

5 Above 200000 3 2.4%

INTERPREATION:
The income distribution among respondents shows a concentration in lower to mid-level income

brackets, with the majority (31.1%) earning between ₹50,000 and ₹1,00,000. This suggests that

respondents may favor banking products that align with modest income levels, such as basic savings

accounts or small loans. Additionally, the segments earning below ₹25,000 and between ₹25,000-

₹50,000 constitute a combined 50.8% of the sample, highlighting a considerable need for accesbible

and affordable banking services. The higher income groups (₹1,00,000-₹2,00,000 and above

₹2,00,000) are less represented at 15.1% and 2.4%, respectively, indicating a smaller demand for

premium or high-value financial products. This data underlines the need for banks to prioritize

services tailored to low- and mid-income customers, ensuring accesbibility and affordability in their

offerings.

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Graph :The graph shows the divided income of the respondents

Data analysis

The income analysis shows a strong preference for accesbible, affordable banking services among

low- and mid-income groups, while demand for premium products is limited among higher income

respondents.

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 4. The different types of bank accounts held by the respondents

Table 4: representation of the different account holders

Sl.no Response frequency Percentage

1 Savings account 45 35.7%
2 Current account 21 16.7%
3 FD account 39 31%
4 RD account 18 14.3%
5 others 3 2.4%

INTERPREATION:
The distribution of account types shows a strong preference for savings accounts, held by 35.7% of

respondents, reflecting a widespread inclination toward secure, low-risk options for managing

personal finances. Fixed Deposit (FD) accounts follow closely at 31%, suggesting that a significant

number of account holders are interested in investment opportunities with steady returns. Current

accounts, at 16.7%, indicate usage primarily by business owners or those requiring frequent

transactions. Recurring Deposit (RD) accounts, held by 14.3%, highlight a moderate interest in

systematic saving habits, while the ‘others’ category at 2.4% suggests limited engagement with

alternative banking products. These findings emphasize the demand for accesbible savings and

investment options, with an opportunity to educate and engage users on other available

banking products.

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Graph 4: shows the percentage of the different account holders

Data analysis

The account type distribution reveals a strong preference for savings and fixed deposit

accounts, highlighting demand for secure and steady-return options, while limited

engagement with alternative products suggests potential for customer education on

broader banking offerings.

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 5. The preference towards banking transactions

Table 5: the preference of the respondents

Sl.no Response frequency Percentage

1 SBI 34 27%
2 ICICI 34 27%
3 Other nationalized 33 26.2%
banks
4 Other private banks 14 11.1%
5 Both equally 11 8.7%

INTERPREATION:

The responses indicate an equal preference for SBI and ICICI, each receiving 27% of the total

responses, highlighting strong customer engagement with these banks. Other nationalized banks also

show a significant preference at 26.2%, reflecting customer trust in nationalized institutions. Other

private banks are less favored, capturing only 11.1% of responses, which suggests a more limited

appeal. Meanwhile, 8.7% of respondents expressed no strong preference, favoring both nationalized

and private banks equally. This distribution underscores the competitive standing of SBI and ICICI,

with a clear customer preference for nationalized banks over private ones, apart from ICIC

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Graph 5: representing the preference of banks in the sample population

Data analysis

The data reveals equal customer preference for SBI and ICICI (27% each), strong trust in

nationalized banks (26.2%), and limited appeal for other private banks (11.1%), underscoring SBI

and ICICI’s competitive edge and a general preference for nationalized institutions

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.

6. The factors required while choosing a bank?

Table 6: contains the factors and responses

Sl.no Response frequency Percentage

1 Convenience of 24 19%

branch locations

2 Interest rates on 24 19%

savings and loans

3 Quality of customer 44 34.9%

service

4 Reputation and trust 21 16.7%

5 Digital banking 13 10.3%

INTERPREATION:
The data reveals that quality of customer service is the most valued factor, with 34.9% of

respondents prioritizing it in their banking experience. This underscores the importance of

responsive, customer-focused services in retaining and attracting customers. Both convenience of

branch locations and interest rates on savings and loans follow closely, each valued by 19% of

respondents, indicating a dual focus on accesbibility and financial benefits. Reputation and trust hold

a 16.7% preference, reflecting the significance of institutional reliability. Meanwhile, digital banking

ranks lowest at 10.3%, suggesting a relatively lower but growing interest in digital solutions. This

distribution highlights the need for banks to enhance service quality and maintain competitive rates,

while also recognizing the importance of building trust and expanding digital offerings

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 Graph 6:

Data analysis

The analysis shows customer service quality as the top priority, with accesbibility,

competitive rates, and trust also valued, while digital banking interest is smaller but

rising

7. The satisfaction level with the overall service of the banks

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 Table 7: shows the satisfaction levels of different sample unit

Sl.no Response frequency Percentage

1 Very satisfied 25 19.8%

2 Satisfied 45 35.7%

3 Neutral 45 35.7%

4 Dissatisfied 7 5.6%

5 Very dissatisfied 4 3.2%

INTERPREATION:
The majority of respondents report positive satisfaction levels, with 19.8% being very satisfied and

35.7% satisfied, indicating that over half of the customers have favorable views of their banking

experience. Additionally, 35.7% of respondents are neutral, suggesting room for improvement to

enhance customer engagement and satisfaction. A smaller proportion, 5.6%, are dissatisfied, and

3.2% are very dissatisfied, highlighting a minority of customers who may have unmet expectations.

Overall, these findings suggest a generally positive customer experience but also an opportunity for

banks to convert neutral and dissatisfied customers into satisfied ones by improving key service

areas.

Graph 7: representing the satisfaction levels of the sample population

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 4 3.20%

7 5.60%

45 35.70%

45 35.70%

Data analysis

The analysis reveals generally positive customer satisfaction, with over half satisfied,

but opportunities exist to enhance engagement and address unmet expectations among

neutral and dissatisfied customers.

8. The primary services at respected banks

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 Table 8: primary services at banks

Sl.no Response frequency Percentage

1 Savings account 24 19%

2 Loan 27 21.4%

3 Investment 40 31.7%

4 Digital services 29 23%

5 All of the above 6 4.8%

INTERPREATION:

The data shows that investment services are the most preferred, with 31.7% of respondents

prioritizing them, highlighting a strong interest in financial growth and wealth management products.

Digital services follow at 23%, indicating that a significant portion of customers values online

banking accesbibility. Loans are also prioritized by 21.4%, reflecting the demand for credit products.

Meanwhile, savings accounts are selected by 19%, demonstrating an ongoing preference for secure,

everyday banking. Only 4.8% of respondents opted for all services equally, suggesting that most

customers have specific, focused needs. This distribution indicates that banks should concentrate on

enhancing investment options, digital capabilities, and loan offerings to align with customer

priorities

Graph 8: represents the populations primary use of banks

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 40

29
27
24

6
Savi n gs ac c o u n t L o an I n v est m en t D i gi t al ser v i c es Al l o f t h e ab o ve

Data analysis

The analysis shows a strong customer preference for investment, digital, and loan services, with most

focusing on specific needs, suggesting banks should enhance these areas to meet key priorities.

9. The trust level of the respondents with twh financial transactions with their

banks

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 Table 9: representation trust levels

Sl.no Response frequency Percentage

1 Completely trust 61 48.4%

2 Neutral 57 45.2%

3 Do not trust 8 6.3%

INTERPREATION:

The data shows a high level of trust in banks, with 48.4% of respondents expresbing complete trust.

This indicates a strong foundation of credibility and reliability in banking services among nearly half

of the respondents. Meanwhile, 45.2% are neutral, suggesting that a significant segment has neither

strong positive nor negative perceptions, which represents an opportunity for banks to build deeper

trust with these customers. A small percentage, 6.3%, do not trust their banks, highlighting a minority

with reservations. Overall, the results indicate that while trust is relatively strong, banks can further

engage neutral customers to strengthen loyalty and confidence.

Graph 9: a visual representation of the trust towards banks

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 70 60.00%

60 50.00%

50
40.00%
40
30.00%
30
20.00%
20

10 10.00%

0 0.00%
Completely trust Neutral Do not trust

Data analysis

The data indicates strong bank trust (48.4%), but with 45.2% neutral, banks have an

opportunity to deepen trust and loyalty, while addresbing concerns of a small

mistrusting minority (6.3%).

10. banks transparency with its fees and charges

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 Table 10: responses of the above

Sl.no Response frequency Percentage

1 Always transparent 45 35.75%

2 Mostly transparent 69 54.8%

3 Not at all 12 9.5%

INTERPREATION:

The data indicates that most respondents perceive banks as mostly transparent, with 54.8%

expresbing this view, suggesting a general satisfaction with the clarity of banking policies and

communications. Additionally, 35.75% of respondents believe banks are always transparent,

reflecting a positive impresbion of openness among a significant portion of customers. However,

9.5% of respondents feel that banks are not at all transparent, signaling a minority with concerns

about clarity in banking practices. Overall, while transparency is largely acknowledged, there is

room for improvement to address the concerns of customers who view banking practices as lacking

transparency.

Graph 10:

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Data analysis

The data suggests most respondents find banks mostly transparent (54.8%), with a positive

impresbion among 35.75% who see complete transparency, yet a small 9.5% feel banks lack clarity,

indicating room to improve transparency perceptions

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 11. confidence in the long-term financial stability of respondents bank

table 11: the confidence of the respondents

Sl.no Response frequency Percentage

1 Confident 50 39.7

2 Neutral 62 49.2

3 Not confident 14 11.1

INTERPREATION:

The data shows that confidence in banking services is moderate, with 39.7% of respondents feeling

confident, indicating a level of trust in banking practices and stability. However, nearly half (49.2%)

of respondents are neutral, suggesting ambivalence and highlighting an opportunity for banks to

strengthen customer confidence through enhanced service and communication. A smaller portion,

11.1%, report feeling not confident, pointing to specific concerns among a minority of customers.

These results suggest that while confidence levels are generally positive, there is potential to further

reassure and engage customers, especially those who are neutral or lack confidence.

Graph 11: this represents the divided opinion of the sample population

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Data analysis

The data indicates moderate confidence in banking services, with 39.7% of respondents expresbing

trust, while nearly half (49.2%) remain neutral, presenting an opportunity for banks to enhance

customer confidence through improved service and communication; additionally, 11.1% express a

lack of confidence, highlighting specific concerns among a minority that banks should address to

further engage and reassure customers.

12. likely are you to continue using your bank in the next 5 years

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table 12: responses of the respondents

Sl.no Response frequency Percentage

1 Very likely 33 26.2%

2 Likely 39 31%

3 Neutral 45 35.7%

4 Unlikely 4 4%

5 Very unlikely 5 3.2%

INTERPREATION:

The data reveals a generally positive outlook on continued engagement with banking services, as

26.2% of respondents are very likely and 31% are likely to remain with their banks. This majority

reflects a strong foundation for customer retention, suggesting satisfaction with current services or

perceived reliability in their banking relationships. Meanwhile, 35.7% of respondents are neutral,

indicating an ambivalence that presents an opportunity for banks to deepen customer loyalty through

targeted improvements or additional benefits. A small percentage, 4% as unlikely and 3.2% as very

unlikely, express potential dissatisfaction, although this minority indicates that negative perceptions

are relatively low. Overall, these findings highlight a promising retention rate and emphasize the

potential to further engage neutral respondents, strengthening long-term customer commitment

across the board.

Graph 12: representing the outcome from the table

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 50

45

40

35

30

25

20

15

10

0
Very likely Likely Neutral Unlikely Very unlikely

Data analysis

The data indicates a positive outlook for customer retention in banking services, with 26.2% of

respondents very likely and 31% likely to stay, reflecting satisfaction and reliability; however, 35.7%

remain neutral, suggesting an opportunity for banks to enhance loyalty, while a small minority (4%

unlikely and 3.2% very unlikely) indicates low negative perceptions overall

13.the type of bank offering a broader range of services that meet the respondents

needs.
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Table 13: the banks which offer more range of services

Sl.no Response frequency Percentage

1 Nationalised banks 53 42.1%

2 Private banks 53 42.1%

3 Both equally 20 15.9%

INTERPREATION:

The data reveals a near-equal preference for nationalized banks and private banks, with each being

favored by 42.1% of respondents. This split suggests that both types of institutions are viewed as

meeting different yet valuable customer needs. Nationalized banks may appeal to those who

prioritize stability, government backing, and a sense of reliability in managing their finances. In

contrast, private banks are likely preferred for their emphasis on customer service, competitive

products, and innovative offerings, such as advanced digital banking options. Meanwhile, 15.9% of

respondents express no strong preference for either type, choosing both equally. This group likely

values diverse benefits from both types of banks, such as the security of a nationalized bank and the

technological advantages or personalized service often associated with private banks.

The almost equal preference highlights the competitive positioning of both nationalized and private

banks in meeting customer expectations. This suggests that, while each type of bank has its unique

strengths, there is room for cross-sector learning and innovation to cater to a broader audience.

Nationalized banks, for instance, might attract more customers by enhancing their digital offerings,

while private banks could continue to build trust by emphasizing stability and transparent practices.

This balanced preference emphasizes the need for both nationalized and private banks to strategically

leverage their respective advantages to maximize customer satisfaction and retention

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Graph 13: the representation of the above data

Both equally

Private banks

Nationalised banks

0 10 20 30 40 50 60

Data analysis

The data reveals nearly equal preference for nationalized (42.1%) and private banks (42.1%),

indicating that each type meets distinct customer needs, while 15.9% express no strong preference,

highlighting opportunities for cross-sector innovation to enhance customer satisfaction and retention

14. the services that the customer thinks their bank excels at

Table 14: the banks excel at a particular service

Sl.no Response frequency Percentage

1 Loan and credit 19 15.1%

2 Investment and wealth 48 38.1%

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 3 Digital banking 50 39.7%

4 Customer support 25 19.8%

5 All of the above 20 15.9%

INTERPREATION:

The data shows that digital banking (39.7%) and investment and wealth management services

(38.1%) are the most sought-after banking services among respondents, indicating a strong customer

focus on digital accesbibility and financial growth opportunities. The high demand for digital

banking underscores the importance of seamless, tech-driven interactions, while the significant

interest in investment services reflects a preference for wealth-building options. Customer support is

also valued, with 19.8% of respondents prioritizing it, emphasizing the need for responsive and

reliable asbistance in banking. Loan and credit services, selected by 15.1%, highlight a moderate yet

vital demand, likely from customers seeking financing solutions for personal or business needs.

Finally, 15.9% of respondents prefer all services equally, suggesting a comprehensive need across

banking areas. These preferences indicate that banks can maximize customer satisfaction by focusing

on expanding digital and investment services, while also maintaining robust support and credit

options. The emphasis on digital banking suggests that institutions should continue innovating in

online platforms, while the interest in wealth management highlights the need for competitive

investment products. Together, these findings underline the importance of a balanced approach to

service offerings, catering to both tech-savvy clients and those with diverse financial needs

Graph 14:

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Data analysis

The data reveals strong demand for digital banking (39.7%) and investment services (38.1%),

highlighting customer priorities for tech accesbibility and financial growth, while also emphasizing

the need for responsive support and robust credit options, suggesting banks should enhance these

areas to maximize satisfaction.

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 15.satisfaction level of respondents in digital services provided by the banks

Table 15: satisfaction level of respondents in digital services

Sl.no Response frequency Percentage

1 Satisfied 40 31.7%

2 Neutral 66 52.4%

3 Dissatisfied 17 13.5%

4 Do not use 3 2.4%

INTERPREATION:

The data reveals a generally moderate level of satisfaction with banking services, with 31.7% of

respondents indicating they are satisfied. This suggests that while a portion of customers have

positive experiences, the majority are more reserved in their assessment. Notably, 52.4% of

respondents are neutral, indicating an ambivalence that may stem from either mixed experiences or a

lack of strong impresbions. This neutral response represents an opportunity for banks to strengthen

their services and positively influence these customers. Meanwhile, 13.5% of respondents are

dissatisfied, highlighting a need for improvement in specific service areas to reduce dissatisfaction. A

small percentage, 2.4%, report that they do not use these services, likely reflecting minimal

engagement with certain banking products. Overall, the data suggests that while satisfaction is

present, there is significant room for banks to enhance their offerings and convert neutral and

dissatisfied customers into satisfied ones. By addresbing areas of concern and actively engaging

neutral respondents, banks can work to improve customer perceptions and foster a more positive

overall experience.

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Graph 15:

Data analysis

The data indicates that while 31.7% of respondents are satisfied with banking services, a majority of

52.4% remain neutral, suggesting ambivalence, and 13.5% express dissatisfaction, highlighting a

need for improvement to convert neutral and dissatisfied customers into more loyal, satisfied clients.

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 16.Customer Relationship Management

table 16: showing how quick the banks resolve the customers grievance’s

Sl.no Response frequency Percentage

1 Excellent 39 31%

2 Good 49 38.9%

3 Average 29 23%

4 Poor 5 4%

5 Very poor 4 3.2%

INTERPREATION:

The data indicates an overall positive perception of banking services, with 38.9% of respondents

rating their experience as good and 31% as excellent. This majority reflects strong customer

satisfaction, suggesting that many users are pleased with the quality of service they receive.

However, 23% of respondents rated their experience as average, indicating that while they find the

services adequate, there is room for improvement in areas that could enhance their experience and

boost satisfaction levels. A smaller proportion of respondents rated their experience as poor (4%) or

very poor (3.2%), showing that a minority of customers have significant concerns. This distribution

highlights that while positive perceptions are prevalent, banks have an opportunity to target

improvements that can convert average and dissatisfied customers into more satisfied and loyal

clients, further strengthening overall customer satisfaction.

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Graph 16:

Data analysis

The data reflects generally positive customer perceptions, with 69.9% rating services as good or

excellent, though 23% find them average and 7.2% report poor experiences, indicating room for

targeted improvements to enhance overall satisfy

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 17. Respondent choice between SBI and ICICI in terms of customer support

Table 17

Sl.no Response Factor Percentage

1 SBI is better 50 40%

2 ICICI is better 44 35%

3 Both are similar 32 25%

INTERPREATION:

The data reveals the preferences of respondents regarding two entities, SBI and ICICI, along with a

category for those who find both options similar. A substantial portion, 40% (50 individuals),

believes that SBI is the better choice, indicating strong satisfaction with its services or features. In

contrast, 35% (44 individuals) favor ICICI, suggesting that it also holds a significant appeal and

competitive strength. Additionally, 25% (32 individuals) perceive the two entities as similar,

reflecting a neutral stance or an acknowledgment that both offer comparable benefits. This

distribution highlights a landscape of diverse opinions: while SBI leads in popularity, ICICI remains

a formidable competitor. The quarter of respondents who see both options as alike suggests that, for

some, either choice would be adequate. Overall, the results illustrate a competitive environment

where satisfaction, preference, and perceived similarity coexist among the respondents.

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 17. Graph Choice Between SBI And ICICI In Terms of Customer Support

Both are similar

3

ICICI is better
2

SBI is better
1

0 10 20 30 40 50 60

Percentage

Data analysis

The data shows that 40% prefer SBI, 35% favour ICICI, and 25% view both as similar, indicating a
competitive landscape with SBI slightly ahead in popularity.

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18. Factor influencing the customer preference toward SBI and ICICI

Table 18: data of factors effecting customers preference

Sl.no Responses Factor Percentage
1 Interest rates, loans and savings 30 24%
2 Network and accessibility 25 20%
3 Quality of customer service 35 28%
4 Digital banking features 20 16%
5 Reputation and trust 16 12%

INTERPREATION:

The data reveals key factors influencing preferences for ICICI or SBI among respondents. The most

significant factor is quality of customer service, with 28% (35 individuals) prioritizing it, indicating

that a positive customer experience is crucial in their banking decisions. Following closely, interest

rates on loans and savings are important for 24% (30 individuals), suggesting that financial terms

play a substantial role in shaping preferences. Network and accessibility is also a noteworthy

consideration for 20% (25 individuals), highlighting the importance of convenient branch locations

and service availability. Meanwhile, digital banking features attract the attention of 16% (20

individuals), reflecting a growing interest in technological advancements in banking. Lastly,

reputation and trust are valued by 12% (16 individuals), indicating that while important, they are less

of a deciding factor compared to the others. Overall, the data illustrates that while financial aspects

and convenience are essential, customer service stands out as the primary driver influencing

respondents' banking preferences.

Graph 18; representation of the data

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 40 30%
35 25%
30
25 20%
20 15%
15 10%
10
5 5%
0 0%
gs ili
ty ice re
s st
vin is b rv tu tru
sa s s e
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sa ac m kin n
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a us a ta
, lo ka c lb pu
es or f ta e
at tw yo gi R
t r Ne a lit Di
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Factor Percentage

Data analysis

The data indicates that quality of customer service is the most influential factor for 28% of
respondents, followed by interest rates (24%) and accessibility (20%), while digital banking features
(16%) and reputation (12%) are less critical in shaping preferences for ICICI or SBI.

19.proactive banks in terms of updating the customers about offers and services
Table 19: showing the banks which are proactive

no Bank Preference Number of Responses Percentage

1 ICICI 50 40%
2 SBI 30 24%
3 Both equally 30 24%
4 I don’t receive updates from either 16 12%

Interpterion
The data illustrates customer perceptions regarding which bank is more proactive in updating clients
about new services and offers. A significant 40% of respondents (50 individuals) believe that ICICI
is the most proactive, indicating a strong preference for its communication efforts. In contrast, SBI
garnered 24% of the responses (30 individuals), suggesting that while it has a loyal customer base, it
is viewed as less effective in customer updates compared to ICICI. Additionally, another 24% of
respondents (30 individuals) feel that both banks are equally proactive, highlighting a recognition of
satisfactory communication practices from both entities. However, 12% of respondents (16

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individuals) indicated that they do not receive updates from either bank, pointing to an opportunity
for improvement in engagement strategies. Overall, the data reveals ICICI's perceived advantage in
customer communication while also emphasizing a notable portion of customers who feel
underserved by both banks.

Graph 19: showing the number of responses

Number of Responses

I don’t receive updates from either

Both equally

SBI

ICICI

0 10 20 30 40 50 60

Data analysis
The data shows that 40% of respondents perceive ICICI as the most proactive in customer updates,
while 24% view SBI similarly, another 24% believe both banks are equally proactive, and 12% do
not receive updates from either bank, highlighting areas for improvement in communication

20: which banks among the two are trusted more

Table 20: data representing the responses of the sample population

Sl. No Response Number of Individuals Percentage

1 ICICI 30 24%
2 SBI 50 40%
3 Both offer good 46 36%
security

Interpterion
The data illustrates customer trust in security and fraud protection for ICICI and SBI. SBI emerges as
the most trusted bank, with 40% of respondents (50 individuals) favoring it for its security measures.

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In contrast, ICICI is trusted by 24% (30 individuals), indicating a lower level of confidence
compared to SBI.

Notably, a significant 36% of respondents (46 individuals) believe that both banks offer good
security, reflecting a general satisfaction with the security measures in place at both institutions. This
suggests that while SBI holds the lead in customer trust, there is also a substantial portion of the
customer base that recognizes and appreciates the security capabilities of both banks. Overall, the
data highlights SBI's stronger position in security trustworthiness while acknowledging a collective
confidence in the measures taken by both banks.

Graph 20: representing the data in an graph sheet

Both offer good security

SBI

ICICI

0 10 20 30 40 50 60

Data analysis

The data shows that 40% of respondents trust SBI the most for security, while 24% favor ICICI, and
36% believe both banks offer good security, indicating SBI's stronger position in customer trust.

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Findings

1. Service Quality Perception: Customers generally perceive private banks like ICICI to provide
better customer service, with shorter wait times and more personalized attention compared to
nationalized banks like SBI.
2. Digital Banking Adoption: ICICI Bank customers are more likely to adopt digital banking
due to the bank’s advanced technology offerings, while SBI customers might still rely more
on traditional banking methods.
3. Trust and Reliability: Many customers consider SBI more trustworthy and reliable due to its
long-standing government affiliation, despite occasional service delays.
4. Loan Procesbing Speed: ICICI Bank tends to have a faster loan procesbing time compared to
SBI, which might influence customer preference, especially for urgent credit needs.
5. Interest Rates and Charges: Customers tend to prefer SBI for savings and loan products due
to generally lower interest rates and minimal hidden charges, while ICICI may have higher
service charges.
6. Branch Network Accesbibility: SBI has a more extensive branch network, especially in rural
and semi-urban areas, making it more accesbible for customers in these regions than ICICI.
7. Product Variety: ICICI Bank offers a wider range of specialized financial products and
services tailored to specific customer needs, which appeals to younger and more urban
clientele.
8. Customer Loyalty: SBI customers demonstrate higher loyalty and satisfaction due to its
reputation as a public sector bank, whereas ICICI customers tend to be more open to
switching banks.
9. Grievance Handling: ICICI’s grievance redressal process is often perceived to be more
efficient and customer-centric, while SBI customers report slower responses to complaints.
10. Customer Segmentation: ICICI is preferred by younger, tech-savvy customers, whereas SBI
attracts a more diverse demographic, including older customers who may prefer in-person
banking.

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 Suggestion

 Enhance Digital Infrastructure for SBI: SBI could invest more in digital banking infrastructure to

match private banks’ ease of use, attracting tech-savvy customers.

 Improve Customer Service in SBI: Training programs focusing on customer service and

efficiency could help SBI compete better with private banks in terms of customer experience.

 Increase Transparency in ICICI: Reducing hidden charges and making fee structures clearer could

improve customer satisfaction in ICICI.

 Focus on Loan Procesbing Efficiency for SBI: Simplifying and speeding up loan approval

processes would make SBI more competitive in attracting customers needing fast credit.

 Promote Loyalty Programs in ICICI: ICICI could introduce customer loyalty programs to increase

customer retention and compete with SBI’s established brand loyalty.

 Expand ICICI's Rural Presence: ICICI could consider expanding its branch network in semi-

urban and rural areas to increase accesbibility and capture SBI’s rural customer base.

 Broaden Product Offerings in SBI: Offering more specialized products, such as investment

solutions or youth-targeted services, could attract younger customers to SBI.

 Strengthen SBI's Grievance Redressal System: Streamlining and modernizing grievance handling

could increase customer satisfaction and improve SBI’s service image.

 Leverage Technology in ICICI for Personalization: ICICI could enhance its digital platform to

offer more personalized banking services, strengthening its appeal to digitally inclined customers.

Conclusion:

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In conclusion, the comparative analysis of customer preferences toward State Bank of

India (SBI), a prominent nationalized bank, and ICICI Bank, a leading private bank in

India, reveals distinct trends shaped by factors such as customer service, technological

adaptation, trust, and accesbibility. The study highlights significant aspects that

influence customer choices, ultimately illustrating how public and private sector banks

can better align with customer expectations. The differences identified between SBI

and ICICI Bank's operational models reflect broader industry distinctions between

public and private sector banking.

SBI, as a nationalized bank, benefits from a well-established reputation, particularly in

terms of trust and reliability. Many customers associate SBI with security due to its

government backing, and this has fostered loyalty, particularly among older customers

and those in rural areas. However, certain operational aspects, such as slower loan

procesbing times and a less efficient grievance handling system, have somewhat

affected its appeal, especially among younger, urban customers who prioritize

convenience and fast service. On the other hand, SBI’s extensive branch network

remains a strong asset, offering unparalleled access in rural and semi-urban areas.

Additionally, the lower interest rates and transparent fee structures make SBI an

attractive choice for savings and loans, giving it an advantage in terms of affordability

over private banks.

ICICI Bank, as a private sector bank, appeals to customers who value efficient,

technology-driven banking experiences. The bank's faster loan procesbing times,

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efficient customer service, and advanced digital banking options resonate with a tech-

savvy, younger demographic, often located in urban centers. ICICI Bank’s focus on

innovation has led to the introduction of specialized products tailored to various

customer segments, from youth-centric products to digital loan solutions. However,

ICICI Bank faces challenges in terms of customer loyalty due to perceived higher

service charges and less transparent fee structures, which can deter long-term

engagement.

The findings suggest that while SBI holds a competitive edge in terms of customer

loyalty, trust, and affordability, ICICI Bank excels in operational efficiency,

personalized services, and digital innovation. For SBI, investing in digital banking and

customer service training could bridge gaps in service quality, making it more

competitive with private banks. Enhancing loan procesbing efficiency and

streamlining grievance redressal would also improve customer satisfaction and

retention. For ICICI, expanding its branch presence in rural areas could enhance

accesbibility and broaden its customer base. Introducing loyalty programs and

increasing fee transparency could also help ICICI Bank strengthen customer loyalty,

which remains one of its key challenges.

Both SBI and ICICI Bank can benefit from a renewed focus on financial literacy

initiatives, particularly in rural areas and among demographics less familiar with

digital banking. Educating customers on product offerings, digital safety, and financial

management can boost confidence and satisfaction across customer segments. Given

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that customer expectations continue to evolve, adapting to these changes remains

critical for both banks to stay competitive in the rapidly transforming banking sector.

In summary, while SBI and ICICI Bank cater to distinct customer bases, they also

share opportunities for improvement and innovation. By addresbing these areas, both

banks can enhance customer experiences, meet evolving preferences, and foster long-

term loyalty. The insights from this study underscore the need for both public and

private sector banks to balance traditional banking strengths with modern

technological advancements, ultimately creating a more customer-centric banking

environment. Through targeted enhancements and strategic initiatives, SBI and ICICI

Bank can continue to grow and sustain their competitive positions within India’s

dynamic financial landscape.

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 Annexure

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A QUESTIONER TITLED
A comparative study on customer preferences towards Nationalized and Private banks
with reference to SBI and ICICI Bank

1.What is your age group?

 18-25
 26-35
 36-45
 46-60
 Above 60
2.What is your occupation?
 Student
 Salaried employee
 Self-employed
 Retired
 unemployed
3.What is your monthly income?
 Below ₹25,000
 ₹25,00o-₹50,000
 ₹50,000-₹1,00,000
 ₹1,00,000-₹2,00,000
 Above ₹2,00,000
4.Which type of bank account do you hold?
 Savings account
 Current account
 Fixed deposit account
 Recurring deposit account
 Others
5.Which bank do you prefer for most of your banking transactions?
 SBI
 ICICI
 Other nationalized banks
 Other private banks
 Both equally

6.What factor is most important when choosing your bank?

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  Convenience of branch locations
 Interest rates on savings and loans
 Quality of customer service
 Reputation and trust
 Digital banking services
 Other:

7.How satisfied are you with the overall service of your bank?
 Very satisfied
 Satisfied
 Neutral
 Dissatisfied
 Very dissatisfied
8.Which of the following services do you primarily use at your bank?
 Savings account
 Loans or mortgages
 Investment or wealth management
 Digital banking services
 All of the above
9.How much do you trust your bank with your financial transactions?
 Completely trust
 Neutral
 Do not trust
10.Do you feel your bank is transparent with its fees and charges?
 Always transparent
 Mostly transparent
 Not transparent at all
11.How confident are you in the long-term financial stability of your bank?
 Confident
 Neutral
 Not confident
12.How likely are you to continue using your bank in the next 5 years
 Very likely
 Likely
 Neutral
 Unlikely
 Very unlikely
13.Which type of bank offers a broader range of services that meet your needs?
 Nationalized banks

INSTITUTE OF BUSINESS MANAGEMENT & RESEARCH

HUBBALLI
  Private banks
 Both equally
14.Which of the following services do you think your bank excels at?
 Loan and credit services
 Investment and wealth management
 Digital banking services
 Customer support
 All of the above
15.How satisfied are you with the digital banking services provided by your bank?
 Satisfied
 Neutral
 Dissatisfied
 I do not use digital banking services
16.How would you rate your bank’s ability to provide quick resolutions to issues?
 Excellent
 Good
 Average
 Poor

17. When choosing between ICICI and SBI, which bank do you feel offers better customer support?

 SBI is significantly better

 ICICI Bank is significantly better
 Both are similar

18. Which factor influences your preference for ICICI or SBI the most?

 Interest rates on savings and loans

 Branch network and accesbibility
 Quality of customer service
 Digital banking features
 Reputation and trust

19. Which bank do you feel is more proactive in updating customers about new services and offers?
 ICICI
 SBI
 Both equally
 I don’t receive updates from either

INSTITUTE OF BUSINESS MANAGEMENT & RESEARCH

HUBBALLI
20. When it comes to security and fraud protection, which bank do you trust more?
 ICICI
 SBI
 Both offer good security


INSTITUTE OF BUSINESS MANAGEMENT & RESEARCH

HUBBALLI