APROJECT REPORT ON “COMPARATIVE ANALYSIS OF SBI AND ICICI BANK” In Partial fulfillment of requirement of degree of Master of Business Administration 2008-2010 SUBMITTED BY: Ms. ASHIFA. M. ALI Roll No. 81008317010 UNDER THE GUIDANCE OF MRS. NEELAM (FACULTY MEMBER) DOABA GROUP OF COLLEGES, KHARAR, MOHALI. SESSION- 2008 – 2010 1 A PROJECT REPORT ON “COMPARATIVE ANALYSIS OF SBI AND ICICI BANK” SUBMITTED BY: Ms. ASHIFA. M. ALI MBA 4th SEM UNDER THE GUIDANCE OF MRS. NEELAM (FACULTY MEMBER) DOABA GROUP OF COLLEGES, KHARAR, MOHALI. SESSION- 2008 – 2010 2 TABELS OF CONTENTS S.NO. CONTENTS Page no. 1. Introduction 1-26 - Indian banking system -Growth of banking -Structure of Indian banking sector -Introduction of SBI -Introduction of ICICI bank. 2. Introduction of Topic 27-46 -Product & services offered by SBI -Risk Management -Credit Risk -Market risk -Operational risk - Product & services offered by ICICI BANK - Risk Management -Credit Risk -Market risk -Operational risk - Comparison of Loan and Advances of SBI and ICICI bank - Advantages of ICICI over SBI & vice versa. 3. Review of literature 47-48 4. Objective Research 49 5. Research Methodology 50-52 3 Conclusion 65 9. Annexure-1 68-69 INTRODUCTION 4 . Recommendations 66 10. Data Analysis & interpretation 53-63 7. Findings 64 8. Types Of Research -Sample Area -Sample Size -Sources of data collection -Sampling Technique -Limitation of the study 6. Bibliography 67 11. agriculture. Agriculture is a major component of the Indian economy. Each group has their own benefits and limitations in operating in India. It has grown by more than 9% for three years running. Banking sector is considered as a booming sector in Indian economy recently. However. with a number of major sectors including manufacturing industries. Banks accept deposits and make loans or make an investment to derive a profit from the difference in the interest rates paid and charged. Some are of Indian origin and some are foreign players. Many even are only catering in cities. India’s economy has been one of the stars of global economics in recent years. Banking is a vital system for developing economy for the nation.A bank is an institution that deals in money and its substitutes and provides other financial services. Each has their own dedicated target market. Indian banking system and economy has been facing various challenges and problems which have discussed in other parts of project. 5 . In India the banks are being segregated in different groups. textiles and handicrafts. Few of them only work in rural sector while others in both rural as well as urban. and services. The economy of India is as diverse as it is large. as over 66% of the Indian population earns its livelihood from this area. respectively. Both these banks are now defunct. The Reserve Bank of India formally took on the responsibility of regulating the Indian banking sector from 1935. For the past three decades India's banking system has several outstanding achievements to its credit. The Public Sector emerged as the driver of economic growth consequent to the industrial revolution in Europe. The most striking is its extensive reach. The first fully Indian owned bank was the Allahabad Bank. A couple of decades later. The banking system of India should not only be hassle free but it should be able to meet new challenges posed by the technology and any other external and internal factors. in Mumbai . in 1895 in Lahore and Bank of India.both of which were founded under private ownership. With the advent of globalization. This was followed by Bank of Hindustan. Without a sound and effective banking system in India it cannot have a healthy economy. Calcutta was the most active trading port. Indian banking system has reached even 6 . and due to which banking activity took roots there and prospered. In fact. After India's independence in 1947. the public sector faced new challenges in the developed economies. It is no longer confined to only metropolitans or cosmopolitans in India. the political opinion started swinging towards the views that the intervention as well as investment by Government in commercial activities should be reduced to the extent possible. By the 1900s. the market expanded with the establishment of banks such as Punjab National Bank. in 1906. No longer the public sector had the privilege of operating in a sellers market and had to face competition both from domestic and international competitors. At that point of time. the Reserve Bank was nationalized and given broader powers. The oldest bank in existence in India is the State Bank of India being established as “The Bank of Bengal" in Calcutta in June 1806. in the second half of the 20th century in the developed economies. which was established in 1865. Further. foreign banks like Credit Lyonnais started their Calcutta operations in the 1850s.INDIAN BANKING SYSTEM Banking in India originated in the first decade of 18th century with The General Bank of India coming into existence in 1786. mainly due to the trade of the British Empire. Europeans-shareholders. These three banks were amalgamated in 1920 and Imperial Bank of India was established which started as private shareholders banks. Bank of India. There were approximately 1100 banks. The government's regular policy for Indian bank since 1969 has paid rich dividends with the nationalization of 14 major private banks of India. Punjab National Bank Ltd. Central Bank of India. and Bank of Mysore were set up. They are as mentioned below: Phase I: Early phase from 1786 to 1969 of Indian Banks Phase II: Nationalization of Indian Banks and up to 1991 prior to Indian banking sector Reforms Phase III: New phase of Indian Banking System with the advent of Indian Financial & Banking Sector Reforms after 1991. To streamline the functioning and activities of commercial banks. the Government of India 7 . and mostly the European. Reserve Bank of India came in1935. This is one of the main reasons of India's growth process. was set up in 1894 with headquarters at Lahore. In 1865 Allahabad Bank was established and first time exclusively by Indians. During the first phase the growth was very slow and banks also experienced periodic failures between 1913 and 1948. Between 1906 and 1913. Bank of Bombay (1840) and Bank of Madras (1843) as independent units and called it Presidency Banks. Indian Bank. Phase I The General Bank of India was set up in the year 1786. GROWTH OF BANKING Journey of Indian Banking System can be segregated into three distinct phases. mostly small. Canara Bank. Next came Bank of Hindustan and Bengal Bank. The East India Company established Bank of Bengal (1809). Bank of Baroda.to the remote corners of the country. Banking in 8 . 1969.000%. This step brought 80% of the banking segment in India under Government ownership.came up with The Banking Companies Act. Phase II Government took major steps in this Indian Banking Sector Reform after independence. The following are the steps taken by the Government of India to Regulate Banking Institutions in the Country: 1949: Enactment of Banking Regulation Act. In 1955. Second phase of nationalisation Indian Banking Sector Reform was carried out in 1980 with seven more banks. the branches of the public sector bank India rose to approximately 800% in deposits and advances took a huge jump by 11. 1959: Nationalisation of SBI subsidiaries. it nationalized Imperial Bank of India with extensive banking facilities on a large scale especially in rural and semi-urban areas. Mrs. Seven banks forming subsidiary of State Bank of India was nationalized in 1960 on 19th July. 1969: Nationalisation of 14 major banks. Reserve Bank of India was vested with extensive powers for the supervision of banking in India as the Central Banking Authority. During those days public has lesser confidence in the banks. Indira Gandhi. 23 of 1965). Abreast of it the savings bank facility provided by the Postal department was comparatively safer. major process of nationalization was carried out. 1975: Creation of regional rural banks. It was the effort of the then Prime Minister of India. 1955: Nationalisation of State Bank of India. 14 major commercial banks in the country were nationalised. After the nationalisation of banks. 1949 which was later changed to Banking Regulation Act 1949 as per amending Act of 1965 (Act No. 1961: Insurance cover extended to deposits. As an aftermath deposit mobilization was slow. 1971: Creation of credit guarantee corporation. It formed State Bank of India to act as the principal agent of RBI and to handle banking transactions of the Union and State Governments all over the country. 1980: Nationalisation of seven banks with deposits over 200 crore. The entire system became more convenient and swift. under the chairmanship of M Narasimham. Efforts are being put to give a satisfactory service to customers. a committee was set up by his name which worked for the liberalisation of banking practices. Co-operative banks and foreign banks. The financial system of India has shown a great deal of resilience. This is all due to a flexible exchange rate regime. Phase-III This phase has introduced many more products and facilities in the banking sector in its reforms measure. This is a mix of the Public sector. the capital account is not yet fully convertible. In 1991. 9 . Private sector. Phone banking and net banking is introduced. and banks and their customers have limited foreign exchange exposure The Structure of Indian Banking Sector The Indian banking industry has Reserve Bank of India as its Regulatory Authority. The country is flooded with foreign banks and their ATM stations. The private sector banks are again split into old banks and new banks.the sunshine of Government ownership gave the public implicit faith and immense confidence. It is sheltered from any crisis triggered by any external macroeconomics shock as other East Asian Countries suffered. Time is given more importance than money. the foreign reserves are high. 10 . The Bank is also in the process of providing complete payment solution to its clientele with it’s over 8500 ATMs.forming a formidable group in the Indian Banking scenario. structured products etc – each one of these initiatives having a huge potential for growth. It presently has 52 foreign offices in 34 countries across the globe. The bank is operating into many businesses with strategic tie ups – Pension Funds. It is also focusing at the top end of the market. SBI have about 8500 of its own 10000 branches and another 5100 branches of its Associate Banks. market capitalization and profits is today going through a momentous phase of Change and Transformation – the two hundred year old Public sector behemoth is today stirring out of its Public Sector legacy and moving with an ability to give the Private and Foreign Banks a run for their money. number of branches. Advisory Services. Ltd. today it offers the largest banking network to the Indian customer. Today. SBICPSL) . on whole sale banking capabilities to provide India’s growing mid / large Corporate with a complete array of products and services.INTRODUCTION OF SBI (State bank of India): The State Bank of India. The origin of the state bank of India goes back to the first decade of the nineteenth century with the establishment of the Bank of Calcutta in Calcutta on2 June 1806. Private Equity. SBI Funds Management Pvt Ltd (SBI FUNDS) and SBI Cards & Payments Services Pvt. Mobile Banking. It is the only Indian bank to feature in the Fortune 500 list. General Insurance. 11 . Point of Sale Merchant Acquisition. It is in the process of raising capital for its growth and also consolidating its various holdings. It has also 5 Subsidiaries in India – SBI Capital Markets. Custodial Services. SBI Factors and Commercial Services Pvt Ltd (SBI FACTORS). the country’s oldest Bank and a premier in terms of balance sheet size. SBI DFHI.SBICAP Securities. the Bank is the largest provider of infrastructure debt and the largest arranger of external commercial borrowings in the country. It is consolidating its global treasury operations and entering into structured products and derivative instruments. the controlling interest in the Imperial Bank of India was acquired by the Reserve Bank of India and the State Bank of India (SBI) came into existence by an act of Parliament as successor to the Imperial Bank of India. factoring services. In 1955. The eight banking subsidiaries are: 1-State Bank of Bikaner and Jaipur (SBBJ) 2-State Bank of Hyderabad (SBH) 3-State Bank of India (SBI) 4-State Bank of Indore (SBIR) 5-State Bank of Mysore (SBM) 6-State Bank of Patiala (SBP) 7-State Bank of Saurashtra (SBS) 8-State Bank of Travancore (SBT) The origins of State Bank of India date back to 1806 when the Bank of Calcutta (later called the Bank of Bengal) was established. credit cards and insurance. primary dealership in government securities. the Bank of Bengal and two other Presidency banks (Bank of Madras and Bank of Bombay) were amalgamated to form the Imperial Bank of India. 12 . The State Bank Group includes a network of eight banking subsidiaries and several non-banking subsidiaries offering merchant banking services. fund management. In 1921. SBI has a vast domestic network of over 9000 branches (approximately 14% of all bank branches) and commands one-fifth of deposits and loans of all scheduled commercial banks in India.STATE BANK OF INDIA State Bank of India (SBI) is India's largest commercial bank. which saw many of its best and brightest defect to the private sector. changing the attitude of its employees (through an ambitious programme aptly named 'Parivartan' which means change) as a large number of employees are very rude to customers. State Bank of India (SBI) (LSE: SBID) is the largest bank in India. State Bank of India (SBI) has spread its arms around the world and has a network of branches spanning all time zones. 13 . the Foreign Offices division. The government nationalized the bank in 1955. the Foreign Department and the International Services division. Established in 1806 as Bank of Calcutta. with the Reserve Bank of India taking a 60% ownership stake. it is the oldest commercial bank in the Indian subcontinent. If one measures by the number of branch offices and employees. 2). SBI's International Banking Group delivers the full range of cross-border finance solutions through its four wings . SBI is the largest bank in the world. international and NRI products and services. it is a regional banking behemoth. computerizing its operations and 3). reducing its huge staff through Golden handshake schemes known as the Voluntary Retirement Scheme. through its vast network in India and overseas. In recent years the bank has focused on three priorities.Today. 1). SBI provides various domestic. With an asset base of $126 billion and its reach.the Domestic division. 14 . 1840: Bank of Bombay established. and were the result of the royal charters. 1843: Bank of Madras established. January 27. July 1. April 15. The State Bank of India Act 1955. becomes the first Indian bank to be nationalized. 1861: Paper Currency Act passed. which was renamed the State Bank of India on 30 April 1955. enacted by the Parliament of India. the government merged it with State Bank of India.HISTORY The State Bank of India traces its roots to the first decade of 19th century. Until the establishment of a central bank in India the Imperial Bank and its early predecessors served as India's central bank. enabling the State Bank of India to take over eight former State-associated banks as its subsidiaries. later renamed the Bank of Bengal. which is the central banking organization of India. January 2. The government amalgamated Bank of Bengal and two other Presidency banks. June 2. when the Bank of Calcutta. 1980s When Bank of Cochin in Kerala faced a financial crisis. All these Presidency banks had been incorporated as joint stock companies. The Imperial Bank of India continued as a joint stock company. authorized the Reserve Bank of India. 1955: State Bank of India formed. and named the reorganized banking entity the Imperial Bank of India. 1959: State Bank of India (Subsidiary Banks) Act passed. 1806: The Bank of Calcutta established. at least in terms of issuing the currency. to acquire a controlling interest in the Imperial Bank of India. July 1. the Bank of Bombay (incorporated on 15 April 1840) and the Bank of Madras on 27 January 1921. namely. 1921: all three banks amalgamated to form Imperial Bank of India. was established on 2 June 1806. 1809: This became the Bank of Bengal. . it indicates complete services towards customers. The logo also denotes a bank that it has prepared to do anything to go to any lengths. The blue pointer represent the philosophy of the bank that is always looking for the growth and newer. more promising direction. ABOUT LOGO THE PLACE TO SHARE THE NEWS . more challenging.…… SHARE THE VIEWS …… Togetherness is the theme of this corporate loge of SBI where the world of banking services meet the ever changing customers needs and establishes a link that is like a circle. for customers. 15 . The key hole indicates safety and security.. Retain its position in the country as pioneers in Development banking. shareholder and employee satisfaction and to play a leading role in expanding and diversifying financial service sectors while containing emphasis on its development banking rule. Maximize the shareholders value through high-sustained earnings per Share.MISSION. with world class standards and significant global committed to excellence in customer. satisfying and Good work environment and continues learning opportunities. An institution with cultural mutual care and commitment. VISION STATEMENT: Premier Indian Financial Service Group with prospective world-class Standards of efficiency and professionalism and institutional values. VISION AND VALUES MISSION STATEMENT: To retain the Bank’s position as premiere Indian Financial Service Group. VALUES: Excellence in customer service Profit orientation Belonging commitment to Bank Fairness in all dealings and relations Risk taking and innovative 16 . 94 growth).515 Crores in Q4FY15 to Rs.22% in fee income and 44.227 Crores in Q4FY15 to Rs.712 Crores in Q4FY15 to Rs. Total Interest Expenses increased from Rs.29. Taking into account write back of Rs.42.68% from Rs. Operating Income increased by 11.269 Crores in Q4FY15 to Rs.389 Crores in Q4FY15 to Rs. Non Interest Income increased by 25.88% from Rs.15.11.27% growth).831 Crores in Q4FY16 (6.291 Crores in Q4FY16 (3.73% increase). Staff Expenses increased from Rs.943 Crores in Q4FY16 (5.34% growth). 416 crores in depreciation due to change in methodology in Q4FY15.37% 17 .81% growth) Interest Expenses on Deposits increased from Rs.40.14.23.25.25.47% in Recovery in written off accounts.467 Crores in Q4FY15 to Rs.27.45% growth).11. Total Interest Income increased from Rs.794 Crores in Q4FY16.113 Crores in Q4FY16 (15.986 Crores in Q4FY16. increase in Operating Expenses would have been lower at 8.28.242 Crores in Q4FY16 (3.25.6.10.185 Crores in Q4FY15 to Rs.696 Crores in Q4FY16 driven by increase of 18.635 Crores in Q4FY15 to Rs.8.61% from Rs.567 Crores in Q4FY15 to Rs.10. Net Interest Income increased from Rs. SBI ANNUALLY RESULTS Q4FY16 OVER Q4FY15 Interest Income on Advances increased from Rs.103 Crores in Q4FY16 (8.23.101 Crores in Q4FY15 to Rs. Operating Expenses increased by 12.6. Interest Income on Resources Operations increased from Rs.9.47% growth).541 Crores in Q4FY16 (8. ------------------- Mar 16 Mar 15 Mar 15 Mar 14 Mar 13 12 mths 12 mths 12 mths 12 mths 12 mths INCOME Interest / Discount on Advances / 115.98 13.00 0.06 Provision Towards Deferred Tax 245.903.17 14.985.51 14.101.63 75.087.104.89 18.01 112.61 Operating Expenses (excludes 14.483.63 9.893.094.82 Other Provisions and 29.82 87.34 Total Profit / Loss available 9.104.950.08 3.972.36 22.94 1.397.74 Contingencies Total Expenditure 181.158.417.976.116.725.31 152.08 11.350.055.56 -477.39 144.218.552. Cr.887. Net Profit declined by 66.504.101.35 11. Operating Profit increased by 11..42 Provision Towards Income Tax 3.27 0.12.264 Crores in Q4FY16.10 Other Income 28.192 Crores in Q4FY16. Bank has recognized the provisioning impact in line with RBI’s Asset Quality Review as well as in respect of other weak accounts to proactively address possible future requirements.47 5.17 Reserve 18 .08 4.00 0.333.27 2.96 154.307.029.07 505.700.677.34 0. INCOME STATEMENT OF SBI LAST 5 YEARS Standalone Profit & Loss account ------------------.32 0.666.83 Contingencies Total Provisions and 33.92 16.763.57 10.760 Crores in Q4FY15 to Rs.068.101.67 174.575.98 Prior Year Items Profit / Loss Brought Forward 0.537.460.101.00 2.950.91 Employee Cost & Depreciation) Total Operating Expenses 41.3742 Crores in Q4FY15 to Rs.47 -477.034.84 Total Income 191.460.397.139.024.52 1.685.86 Reserve Transfer To / From Capital 345.98 37.941.891.63 Interest on Balance with RBI and 621.24 14.14.65 13.77 37.227.49 97.343.116.97 Provision Towards Other Taxes 0.49 1.950.91 102.891.599.10 Bills Income from Investments 42.23 Total Interest Earned 163.75 19.782.64 38.89 22.325.951.17 14.972.871.339.577.101.87 27.32 0.200.586.37 38.691.49 1.811.1.871.599.89 13.55 121.72 135.113.95 6.689.00 0.07 136.91 112.in Rs.381.64 35.374.30 1.803.303.537.575.01 161.95 4.80 Payments to and Provisions for 25.28 18.93 21.56 1.96 174.537.32 0.677.57 10.515.935.20 4.12 505.381.284.32 for Appropriations APPROPRIATIONS Transfer To / From Statutory 2.029.22% from Rs.130.57 13.843.10 90.012.94 EXPENDITURE Interest Expended 106.98 Year Net Profit / Loss After EI & 9.25 -107.891.82 23.00 0.07 23.62 4.57 13.54 19.343.31 545.85 29.14 Other Inter-Bank funds Others 5.89 10.00 0.54 15.105.93 25.07 16.90 Employees Depreciation 1.27 1.087.00 19.07 152.96 Net Profit / Loss for The 9.968.80 119.380.93 6.77 31.689.39 161.23% from Rs.25 2.08 14.65 13.484.657.101.12 409.82 97.07 22.15 25.024.811. 06 Diluted EPS (Rs.53 1.408.259.002.80 1.20 Deposits 1.75 43.922.45 375.03 53.56 5.40 398.557.892.819.951.32 2.89 13.89 10.32 0.593.36 Borrowings 224.65 1.950.16 Net Worth 144.57 684.133.994.02 Total Assets 2.22 Mar '16 Mar '15 Mar '14 Mar '13 Mar '12 12 mths 12 mths 12 mths 12 mths 12 mths Assets Cash & Balances 129.72 1.652.25 98.03 671.00 0.44 1.209.063.915.37 993.16 9.00 The Previous Year Equity Share Dividend 2.412. ------------------- Mar '16 Mar '15 Mar '14 Mar '13 Mar '12 12 mths 12 mths 12 mths 12 mths 12 mths Capital and Liabilities: Total Share Capital 776.463.45 899.39 1.32 0.16 6.616.234.329.358.335.00 156.091.33 115.05 2.51 1.16 127.005.197.101.57 137.274.29 183.04 2.33 58.182.98 17.01 0.24 1.739.026.) 12.595.22 118.60 1.98 13.51 1.335.300.12 0.03 1.16 6.06 DIVIDEND PERCENTAGE Equity Dividend Rate (%) 260.595.913.03 1.079.26 Other Reserves Dividend and Dividend Tax for 0.00 350.71 127.793.955.28 1.00 156.280.792.05 96.35 5.66 65.90 47.28 2.199.16 8.76 210.371.04 Equity Share 776.00 300.51 14.539.51 520.691.32 0.00 0.282.16 9.76 210.55 867.629.087.95 Balance Carried Over To 0.722.027.71 2.00 415.700.045.730.71 5.830.883.57 Total Debt 1.93 Other Liabilities & 159.167.018.00 409.150.04 Capital Reserves 143.698.31 332.792.57 746.566.170.394.875.18 Liabilities 19 .422.32 0.202.42 1.838.34 Balance Sheet Total Appropriations 9.98 17.in Rs.56 5.048.781.093.408. Money at Call Advances 1.07 80.498.28 746.41 54.28 2.113.65 520.565.647.65 117.68 Progress Other Assets 140.064.00 350.61 Gross Block 9.535.55 18.65 83.03 671.71 5.578.519.261.40 6.927.943.00 BALANCE SHEET OF SBI LAST 5 YEARS Standalone Balance Sheet ------------------.239.) 12.88 169.261.018.74 Tax On Dividend 334.130.267.105.043.28 746.41 68.002.68 83.01 0.329.097.97 48.19 350.133.063.89 Investments 477.545.23 Banks.308.977.234.87 Net Block 9.577.96 95.59 205.00 0.65 298.566.075.16 8.013.519.55 43.259.03 1.989.079.84 84.101.27 312.57 746.891.954.Transfer To / From Revenue And 4.828.57 684.39 1.883.994.55 18.438.453.44 128.32 OTHER INFORMATION EARNINGS PER SHARE Basic EPS (Rs. Cr.94 with RBI Balance with 37.048.24 Contingent 1.87 Capital Work In 570.819.455.80 1.190.576.57 1.838.68 98.60 1.28 495.835.09 Provisions Total Liabilities 2.46 47.557. Headquartered in Mumbai.904 branches. 34% of the shares. 20 . spanning large and mid-corporates. the Bank has 2.584.833 crores (as on 31 March 2016). SME. It offers the entire spectrum of financial services to customer segments. Also with associates viz. National Insurance Company Ltd. The Bank employs over 50. LIC and GIC).34 1. Axis Bank is the third largest private-sector banks in India offering a comprehensive suite of financial products. Promoters (UTI. the first bank to begin operations as new private banks in 1994 after the Government of India allowed new private banks to be established.000 people and had a market capitalization of `105.05 INTRODUCTION OF AXIS BANK: Axis Bank India. financial institutions and individual investors among others. Axis Bank was jointly promoted by the Administrator of the specified undertaking of the Unit Trust of India (UTI-I) Life Insurance Corporation of India (LIC) General Insurance Corporation Ltd. are all entities owned and controlled by the Government of India. approximately 43% of the shares are owned by Foreign Institutional Investors. 2013.251. who collectively held approx. 12. Book Value (Rs) 185.04 1. As of 31 Dec.445. The remaining 23% shares are owned by corporate bodies. Axis Bank has its registered office in Ahmedabad.60 1. the New India Assurance Company. The Oriental Insurance Corporation and United Insurance Company Ltd.. and retail businesses.743 ATMs and nine international offices.85 172. Axis bank inaugurated Axis House. Life Insurance Corporation of India (LIC). Mumbai. Manmohan Singh. Deepika Padukone. China. In 2004 the RBI put Global Trust into moratorium and supervised its merger into Oriental Bank of Commerce. Also in 2011. Axis Bank's subsidiary. The Bank was promoted in 1993 jointly by the Administrator of the Unit Trust of India (UTI-I). a Bollywood actress is the brand ambassador of Axis Bank. UTI Bank began its operations in 1993. In 2011.HISTORY OF AXIS BANK UTI (Unit Trust of India) Bank opened its registered office in Ahmedabad and corporate office in Mumbai in December 1993. The first branch was inaugurated on 2 April 1994 in Ahmedabad by Dr. In 2013. In 2003 Axis Bank became the first Indian bank to launch the travel currency card. Axis Bank opened a representative offices in Abu Dhabi. Axis Bank opens its representative office in Dhaka. after the Government of India allowed new private banks to be established. Axis Bank UK has a branch in London. but the Reserve Bank of India (RBI) withheld approval and nothing came of this. In 2005. the Finance Minister of India. That same year it opened a representative office in Shanghai. The New India Assurance Company. Axis Bank UK commenced banking operations.7 billion (US$400 million) on employee benefits during the FY 2012–13. its new corporate office in Worli. Axis Bank opened a branch in Colombo in October 2011. That same year it began branch operations in Hong Kong. as a Licensed Commercial Bank supervised by the Central Bank of Sri Lanka.[19] The average 21 . UTI Bank opened a branch in the Dubai International Financial Centre in 2007. The Oriental Insurance Corporation and United India Insurance Company. General Insurance Corporation. Axis Bank got listed on London Stock Exchange.000 employees (as of 31 March 2016). UTI Bank opened its first overseas branch in 2006 Singapore. In 2008 it opened a representative office in Dubai. In 2001 UTI Bank agreed to merge with and amalgamate Global Trust Bank. The bank incurred ₹26. The bank has over 50. National Insurance Company. Later on in 2002 the UTI was renamed to Axis Bank. In 2015. 120 branches and extension counters and 12. We do believe that we are on the threshold of an exciting new opportunity. 9% per year VISION To be the leading provider of financial services in India and a major global bank. Health and Pensions player built on trust by world-class people and service. Given the quality of our parentage and the commitment of our team.age of an Axis Bank employee is 29 years. Axis Bank has the largest ATM network among private banks in India and it 22 . building transparency in all our dealings The success of the company will be founded in its unflinching commitment Integrity. where we can play a significant role in redefining and reshaping the sector. Each of the values describes what the company stands for. the qualities of our people and the way we work. there are no limits to our growth. To be the preferred brand for total financial and banking solutions for both corporates and individuals To be the dominant Life. OPERATION Indian Business As of 12 Aug 2016. This we hope to achieve by: Understanding the needs of customers and offering them superior products and service Leveraging technology to service customers quickly. Boundary less. The attrition rate in Axis Bank is approx. the bank had a network of 3. Ownership and Passion. Customer First. efficiently and conveniently Developing and implementing superior risk management and investment strategies to offer sustainable and stable returns to our policyholders Providing an enabling environment to foster growth and learning for our employees And above all.922 ATMs. Shanghai. Internet banking. export credit. depository. Corporate Banking Credit: The Bank offers various loan and fee-based products and services to Large and Mid-corporate customers and Small and Medium Enterprise (SME) businesses. investment banking and liability businesses. along with liability products. Sikkim at a height of 4. project finance. trade. International Business The Bank has nine international offices with branches at Singapore. financial advisory services. Liability products including current accounts. certificates of deposits and time deposits are also offered to large and mid-corporate segments. guarantees. cash management services. foreign exchange and derivatives. Transaction Banking: Formed in April 2015. cross-border trade and correspondent banking services and tax collections on behalf of the Government and various State Governments in India. Hong Kong. which focus on corporate lending. Dubai and Abu Dhabi. currency futures and options. syndication. It also invests in commercial papers. discounting of bills. demand and short-term loans. Dubai (at the DIFC). and Non-resident Indian (NRI) services. These products and services include cash credit facilities. Colombo and representative offices at Dhaka. In addition. the bank offers services such as lending to individuals/small businesses subject to the orientation. mutual funds and floating rate instruments as part of the management of short-term surplus liquidity. factoring. channel financing. trade finance. Treasury: The Treasury manages the funding position of the Bank and also manages and maintains its regulatory reserve requirements. 23 . card services. foreign exchange. capital market services. documentary credits. structured products. product and granularity criterion. foreign exchange and derivative products. Axis bank is a participant in RBI's NEFT enabled participating banks list. It invests in sovereign and corporate debt instruments and engages in proprietary trading in equity and fixed income securities.023 meters (13. TxB provides integrated products and services to customers in areas of current accounts. the Bank has a presence in UK with its wholly owned subsidiary Axis Bank UK Limited.operates an ATM at one of the world’s highest sites at Thegu. Services Retail Banking In the retail banking category. automated teller machines (ATM) services. In addition to the above.200 ft) above sea level. it also offers a wide range of treasury products and services to corporate customers. Maintain high standards of governance and ethics. Be guided by the core values and ethics that govern operations namely transparency. Axis Capital Limited provides investment banking services relating to equity capital markets. DIFC. Through the Representative Office at Dhaka. and focus on community. Investment Banking and Trustee Services: The Bank provides investment banking and trusteeship services through its owned subsidiaries. Axis Trustee Services Limited is engaged in trusteeship activities. acting as debenture trustee and as trustee to various securitization trusts. Contribute positively to the various countries and markets in which we operate. create value for our stakeholders Provide the social facilities to the society Support projects and programs that are aligned with the national development priorities. rupee and foreign term loans and external commercial borrowings. Maintain a healthy financial profile and diversify our earnings across businesses and geographies. Expand the frontiers of our business globally. The representative office at Dhaka was inaugurated during the current financial year. and also retail liability products from its branches at Hong Kong and Colombo. technology. 24 . MISSION We will leverage our people. institutional stock broking besides M&A advisory. Hong Kong.Syndication: The Bank also provides services of placement and syndication in the form of local currency bonds. Play a proactive role in the full realization of India’s potential. treasury and risk management solutions through the branches at Singapore. team work. International Banking The Bank continues to offer corporate banking. Shanghai and Colombo. world-class products and services. trade finance. speed and financial capital to: Be the banker of first choice for our customers by delivering high quality. needs of the communities and are in sync with the CSR objectives and policies of Axis Bank. and for 25 . 100 crore.Capital Markets.Rs. 115 crore. Axis Bank is today one of the most competitive and profitable banking franchise in India. UTI. Treasury and International Banking. Axis Securities Europe Ltd.Treds Limited PROMOTERS: UTI Bank Ltd. Axis Trustee Services Ltd. The Bank was set up IN 1993 with a capital of Rs. 1.SUBSIDIARIES The Bank has ten wholly owned subsidiaries: Axis Capital Ltd. Retail Banking. A. Axis Bank UK Ltd. has been promoted by the largest and the best Financial Institution of the country. Axis Securities Ltd. 7. LIC . Axis Asset Management Company Ltd. The Bank’s Core Operating Profit for Q4FY16 grew 15% YOY to `4. Axis Mutual Fund Trustee Ltd. with UTI contributing Rs.134 crores. and Business Banking. Axis Private Equity Ltd. Axis Finance Ltd. Which can be clearly seen by an analysis of its comprehensive portfolio of banking services including Corporate Credit.5 crore GIC and its four subsidiaries contributing Rs. Axis Bank Q4FY16 Results Core Operating Profit and Net Profit Earnings quality remained good with the Bank showing a healthy financial performance in terms of growth in core revenues for the quarter and full year ended 31st March 2016.5 crore each. If we were to include SME loans that qualify as regulatory retail. CASA. Net Profit for Q4FY16 stood at `2. in which Savings 26 .612 crores. Fee income for Q4FY16 grew 6% YOY to reach `2.38. The book value of the Bank’s investments portfolio as on 31st March 2016.006 crores. mutual funds. etc.020 crores were in government securities. Balance Sheet: As on 31st March 2016 The Bank’s Balance Sheet grew 14% YOY and stood at `5. The key driver to the growth in fee income was Retail Banking. fee income grew 11% YOY primarily driven by 16% YOY growth in retail fee and 29% YOY growth in fee from Treasury & DCM segment. NII for FY16 also rose 18% YOY to `16. Savings Account balances grew at a strong 20% YOY. trading profit and miscellaneous income) for Q4FY16 stood at `2.694 crores as against `2. of which `87. Retail Advances grew 24% YOY and stood at `1. During FY16.468 crores as on 31st March 2016.371 crores.553 crores during Q4FY16 from `3.224 crores during FY15. During FY16.254 crores.97%.521 crores and accounted for 41% of the Net Advances of the Bank. SME Advances grew 8% YOY and stood at `44.079 crores were invested in corporate bonds and `11.774 crores as on 31st March 2016. and accounted for 46% of Net Advances.55. was `1. on a daily average basis. while `23. Net interest margin for Q4FY16 remained healthy and stood at 3. Corporate credit grew 22% YOY and stood at `1.25. the share of retail loans to total loans would be 45%. other income grew 12% YOY and stood at `9.833 crores from `14.224 crores. The Bank’s Advances grew 21% YOY to `3.869 crores. The Net Profit for FY16 grew 12% YOY to `8. CASA Deposits as on 31st March 2016 constituted 47% of total deposits.154 crores.22.38. up from the 16% YOY growth we had last quarter. Treasury & DCM fee performance too was healthy and grew 12% YOY to constitute 10% of the total fee income of the Bank. which grew by 15% YOY and constituted 42% of the Bank’s total fee income. Net Interest Income and Net Interest Margin The Bank’s Net Interest Income (NII) grew 20% YOY to `4.384 crores.907 crores in other securities such as equities.687 crores during the same period last year. recorded a growth of 15%. preference shares.FY16 grew by a robust 21% YOY to `14.799 crores in Q4FY15. Other Income Other income (comprising fee. the Bank had a network of 2.743 ATMs and 1. the Bank had 12. Cr.117. while Current Account deposits grew by 16%.Bank Deposits recorded a growth of 14% YOY. This would be subject to approval by the shareholders at the next annual general meeting. As on 31st March 2016.904 domestic branches and extension counters situated in 1. ------------------- Mar 16 Mar 15 Mar 15 Mar 14 Mar 13 12 mths 12 mths 12 mths 12 mths 12 mths INCOME Interest / Discount on 30. Network During Q4FY16.343.60 per equity share of face value of `2 per equity share for the previous year.867. the Bank added 99 branches to its network across the country.589 domestic branches and extension counters situated in 1.78 111.56 25.746. Under Basel III.82 25.13 7.26 166.117.166. As on 31st March 2016.146 cash recyclers spread across the country.855 centers compared to 2.26 231. The proportion of CASA on a daily average basis remained at the same level as the previous quarter and constituted 40% of total deposits.43 19.51% respectively.867. Dividend The Board of Directors have recommended dividend of `5 per equity share of face value of `2 per equity share for the year ended 31st March 2016.040. The Bank is well capitalized.24 Advances / Bills Income from Investments 9.59 9.29% and 12.714 centers last year.377.25 231.26 27 . pushing up the tally to 315 new branches in FY16 compared to 187 branches opened in FY15. INCOME STATEMENT OF AXIS BANK LAST 5 YEARS Standalone Profit & Loss account ------------------.165 crores as on 31st March 2016. against `4. CASA and Retail Term Deposits constituted 81% of Total Deposits as on 31st March 2016 compared to 78% as on 31st March 2015.09 8.in Rs.82 21.950. Capital Adequacy and Shareholders’ Funds The shareholders’ funds of the Bank grew 19% YOY and stood at `53. the Capital Adequacy Ratio (CAR) and Tier I CAR as on 31st March 2016 was 15.98 Interest on Balance with RBI 295.09 9. 52 Employee Cost & Depreciation) Total Operating Expenses 10.31 Payments to and Provisions for 3.97 2.43 262.00 230.00 200.88 OTHER INFORMATION EARNINGS PER SHARE Basic EPS (Rs.357.62 5.839.32 Tax Provision Towards Other Taxes -0.67 5.93 12.35 2.376.501.45 13.185.274.42 4.623.24 Provision Towards Income Tax 4.859.04 1.10 Total Interest Earned 40.357.683.64 38.87 -153.847.10 4.57 Other Income 9.68 EXPENDITURE Interest Expended 24.67 5.69 843.05 2.203.18 31.01 3.365.11 Total Income 50.) 34.182.554.44 143.46 Reserve Transfer To / From Investment -41.84 36.42 221.055.478.42 161.405.750.49 17.78 -347.60 35.82 36.365.75 9.709.86 Tax On Dividend 213.50 43.46 8.135.371.914.223.54 1.45 Total Profit / Loss available 25.203.107.15 20.554.81 158.223.27 20.68 2.179.114.42 0.05 8.029.37 3.05 7.852.82 6.327.46 18.65 17.70 Contingencies Total Expenditure 42.852.43 Prior Year Items Profit / Loss Brought Forward 17.93 351.64 262.00 132.71 28.501.114.485.00 132.74 -1.87 141.238.52 17.329.82 31.623.96 3.15 20.43 180.46 1.90 5.66 7.97 3.27 -1.508.179.46 1.843.478.85 DIVIDEND PERCENTAGE Equity Dividend Rate (%) 250.246.93 12.25 Net Profit / Loss for The Year 8.828.501.26 7.56 119.27 1.88 for Appropriations APPROPRIATIONS Transfer To / From Statutory 2.879.82 7.364.07 21.847.14 63.49 25.376.16 27.357.98 Employees Depreciation 443.93 0.00 28 .60 30.42 1.683.516.49 13.85 31.029.77 6.05 0.93 0.54 939.641.988.27 20.027.37 Balance Carried Over To 22.10 5.64 43.82 6.04 63.) 34.42 1.859.46 Reserve Equity Share Dividend 1.49 50.027.45 10.280.046.087.04 35.357.75 7.38 33.217.551.38 Other Provisions and 3.327.00 230.601.67 405.900.733.03 53.359.91 405.27 16.191.73 Operating Expenses (excludes 6.485.36 -358.241.37 3.254.and Other Inter-Bank funds Others 1.81 25.14 38.40 30.294.087.26 Balance Sheet Total Appropriations 25.59 31.859.82 9.86 Reserve Transfer To / From Reserve 1.68 2.22 6.61 Fund Transfer To / From Capital 62.66 7.49 13.839.27 16.62 6.508.82 7.720.43 Net Profit / Loss After EI & 8.67 363.123.45 10.843.23 118.58 Provision Towards Deferred -71.859.19 221.74 2.623.06 Contingencies Total Provisions and 7.689.00 180.935.155.217.49 4.92 1.36 -153.100.95 6.246.489.46 21.67 Diluted EPS (Rs.254.91 2. 26 99.560.642.98 477.244.759.11 8.69 254.16 RBI Balance with Banks.64 32.250.77 514.192.548.83 Investments 132.21 331.235.280.54 142. Cr.702.10 469.77 29 .627.208.980.50 551.639.944.28 Net Worth 44.66 285.05 2.446.10 34.84 17.175.932.613.244.200.871.38 5.932.39 383.230.737.87 3.84 467.37 576.39 383.441.893.407.564.30 189.522.89 10.94 43.67 26.28 8.482.51 38.55 Reserves 44.09 71.041.066.54 18.56 2.413.792.413.59 611.99 462.in Rs.632.342.107.77 22.888.50 296.47 813.197.83 113.86 22.05 2.12 Total Assets 461.998.54 2.250.055.588.713.80 Borrowings 79.19 8.89 340.46 Net Block 2.34 18.83 Deposits 322.56 6.010.750.11 70.88 Total Debt 402.67 13.19 11.55 Equity Share Capital 474.84 467.230.41 37.230.220.951.788.104.46 Capital Work In 101.713.76 196.183.066.627.758.54 2.237.188.69 Progress Other Assets 9.67 125.91 22.56 252.27 50.505.99 7.864.03 230.808.290.54 2.20 410.267.67 285.083.37 Mar '15 Mar '14 Mar '13 Mar '12 Mar '11 12 mths 12 mths 12 mths 12 mths 12 mths Assets Cash & Balances with 19.68 Other Liabilities & 15.55 Book Value (Rs) 188. BALANCE SHEET OF AXIS BANK LAST 5 YEARS Balance Sheet of Axis Bank ------------------.95 413.071.37 Contingent Liabilities 640.95 413.560.43 113.96 169.56 2.09 10.86 Provisions Total Liabilities 461.643.676.79 7.54 2.886.54 93.87 340.48 33.188.32 14.93 4.94 280. 16.49 Money at Call Advances 281.202.79 242. ------------------- Mar '15 Mar '14 Mar '13 Mar '12 Mar '11 12 mths 12 mths 12 mths 12 mths 12 mths Capital and Liabilities: Total Share Capital 474.59 220.47 707.20 410.818.80 242.62 Gross Block 2.395.97 215.965.10 469.991.310.92 13.310. So one can 30 .1000/. Flexibility in period of term deposit from 15 days to 10 years Affordable Low Minimum Deposit Amount: One can open a term deposit with SBI for a nominal amount of Rs.only. Flexibility in choosing the amount one wish to invest and the maturity period. SBI PRODUCT & SERVICES OFFERED BY SBI:- Terms deposit scheme Recurring deposits scheme Loans SBI SARAL Personal loan Education loan Car loan Home loan Medi-Plus loan TERM DEPOSITS Provide security. Liquidity Loan /overdraft facility: One can avail a loan/overdraft against his deposit. SBI provides loan / overdraft up to 90% of deposit amount at nominal cost. BENIFITS O F SCHEME: - Safety: – SBI IS continues to deliver on its promise of safety and security over 200 years. trust and competitive rate of interest. RECURRING DEPOSIT:- Recurring deposit refers to a little investment by an investor to meet his financial goals of future (Children’s education or marriage. Term Deposits are available at all SBI Branches Easy and convenient access of information at SBI internet banking. Low minimum monthly deposit amount.00% below the rate applicable for the period deposit has remained with the Bank. buy a car etc. Compounding / Flexible / Timely Payment of Interest Under Special Term Deposit Scheme. Tax Implications: Tax Deductible at Source.100/- only. wide choice in period of deposit. as per Income Tax Act Flexibility to convert Special Term Deposit to Term Deposit and vice versa One can convert his special Term Deposit to a Term Deposit to receive monthly/quarterly interest payments to match his financial requirements. which provides compounded rate of interest to multiply his money faster. interest accrues in account and gets compounded quarterly. 31 .) Recurring deposit provides the element of compulsion to save at high rates of interest. Transferability-Transfer of Term Deposits between wide networks of branches without any charge. Features:- Flexibility in period of deposit with maturity ranging from 12 months to 120 months. One can also convert his Term Deposit to a Special Term Deposit. Premature Withdrawal: Interest to be charged on premature withdrawal of term deposits at 1.continue to earn interest in his deposit and still can meet his urgent financial requirements. One can start a Recurring Deposit with SBI for a monthly installment of Rs. 32 .000 collateral Professional courses Security 4.75 Nil A person having a good Personal loan 10. LOAN TYPE AMOUNT RATE OF SECURITY ELIGIBILITY MIN. 13.75% Tangible Post graduation 7.00.000 profession and income Education 4.50.50.Benefits:- Including all the benefits of terms deposits there are some more benefits of recurring benefits:- Nomination Facility is available in this scheme One can save a monthly installment of multiple of 10 every month One can monitor his deposit through SBI Internet Banking or through a passbook issued to you. / MAX.000.000.25% suitable Other courses approved third by party UGC/Government/AICTE guarantee etc. 17.00.25% Nil Graduation courses loan 400.000- 7. INTEREST SBI SARAL 10.000 12.00.000 12. 00. loan repayment. Life Insurance 5 to15 years 30.000 1 15.000 12.000.50.50.50. 14.00.50% 2 Above 3yrs 15. Used Vehicle Up to 3 years 15.00.000 instructions.00.75% 3-5years 15.00% 5-7years Home loan Availability of Equitable mortgage of the sufficient..000 As per bank's person having a income Extant below 1.50% As per bank's Govt emp.000 10.75. From 10 years loan 200.75% regular and security of adequate value continuous like NSCs.000 12. 10.00.Car loan – 15. professional employee/agent (income>3lakhs) SERVICES Domestic treasury SBI Vishwayatra foreign travel card Broking services 33 .50% years New vehicle 7.00.00.00.50% source of policies etc.11.11.000.000 12. if the 75.000 16.000 13.000 16.12% servicing the mortgaged 75.75. Extant self-employed instructions.00.75% Up to 3 years 7.25% Above 3 15.000 – 11.000.000.00.00.00.000 income for property cannot be Up to 15 yrs 30. property or Other tangible Up to 5 years 30. Age18-60 years Medi-Plus 50. using the State Bank ATM-cum-Debit (Cash Plus) card. State Bank of Saurashtra. Mobile. Insurance and Credit Card bills electronically over our Online SBI website E-RAIL Book your Railways Ticket Online. Revised service Charges ATM Services Internet Banking E-Pay E-Rail RBIFT Safe Deposit Locker Gift Cheques Micro Codes Foreign Inward Remittance ATM SERVICE STATE BANK NETWORKED ATM SERVICES State Bank offers you the convenience of over 8000 ATMs in India. Electricity. 34 . State Bank of Indore. and State Bank of Travancore) and wholly owned subsidiary viz. State Bank of Hyderabad. E-PAY Bill Payment at Online SBI (e-Pay) will let you to pay your Telephone. The scheme facilitates Booking of Railways Ticket Online. State Bank of Bikaner & Jaipur. The facility has been launched wef Ist September 2003 in association with IRCTC. SBI Commercial and International Bank Ltd. the largest network in the country and continuing to expand fast! This means that you can transact free of cost at the ATMs of State Bank Group (This includes the ATMs of State Bank of India as well as the Associate Banks – namely. State Bank of Mysore.. State Bank of Patiala. There is a nominal annual charge. corporate and retail customers through a variety of delivery channels and specialised subsidiaries and affiliates in the areas of investment banking. AXIS BANK PRODUCTS & SERVICES OF AXIS BANK AXIS Bank offers a wide range of banking products and financial services to dynamic.) AXIS Bank is also the largest issuer of credit cards in India. PRODUCTS OF AXIS BANK Accounts and Deposits 35 . venture capital and asset management. life and non-life insurance.SAFE DEPOSIT LOCKER For the safety of your valuables we offer our customers safe deposit vault or locker facilities at a large number of our branches. which depends on the size of the locker and the centre in which the branch is located. a. current account. Types are: Easy Access Salary Account Prime Salary Account Priority Account Defence Salary Account Prime Salary Account Employee Reimbursement Account 36 . The interest rate on such accounts stands at 4% p. on daily balances.a. It’s a zero balance zero interest account which allows unlimited number of transaction every day. The below mentioned are the types of current accounts offered: Resident foreign currency account Regular current account Exclusive current accounts Current accounts by industry Tailor made current accounts Axis Bank Salary Accounts: A zero balance account offering an interest rate of 4%p. be it a savings account. This type of account is generally provided to corporate houses to ensure smooth transfer of salaries to the respective corporate employees. Below is the type of Savings accounts provided by the bank - Easy Access Savings accounts Prime Savings Account Future Stars Savings Account Youth account Prime plus savings Account Women’s Account Senior privilege Savings Account Trust/Ngo Savings Account Pension Savings Account Insurance Agent Account Basic Savings account Small Basic Savings Account NRI Account NRO Account Axis Bank Current Accounts: Also known as demand deposit accounts required by businessmen and professionals who have regular transactions with the bank. priority account or a recurring deposit account.Axis Bank offers a variety of accounts and deposit accounts keeping in mind the basic requirement of every individual and corporate office. Axis Bank Savings Account: This is the basic account of every banking business which helps an individual to store away one’s surplus cash and also earn some interest on it. and is calculated on the end of the day balance and paid out quarterly. Lockers are available at a minimal rate payable in advance. The range of cards offered by the bank is: Premium Cards: Which include: Signature Credit card with Lifestyle Benefits Signature Credit Card with Travel Benefits My Cards: the cards on offer under this category are My choice credit card My wings credit card My zone credit card My business credit card Apart from the above mentioned cards there are few more cards offered by Axis bank such as: Shriram Credit Card Insta Easy Credit Cards Platinum Credit Cards Titanium Smart Traveler Credit Cards Miles & More Credit Card Neo Credit Card Pride Platinum Credit Card Forex: Axis bank provides for foreign exchange transactions through currency notes. shopping and on usage of cards at specific places that the bank has tie ups with. The types of deposits are: Fixed Deposits Fixed Deposits Plus Recurring Deposits Tax Saver Deposits Safe Deposit Lockers: Available in different sizes depending upon the need of the individual to store their valuables safely.Deposits Deposit accounts provide a suitable platform for individuals who wish to store their surplus cash for a specific period and earn a higher rate of interest on the same. Credit Cards: The bank has a variety of credit cards which provides special benefits on dining out. The bank offers the following types of Forex services: Multi-Currency Forex Card Outward Foreign Currency travelers cheque Travel Currency Card Foreign Currency Cash India Travel Card Foreign Exchange Rates 37 . The card also provides reward points redeemable at the customer as per their eligibility. traveler’s cheque and foreign travel cards. small and medium enterprises. be it life insurance or general insurance. The bank offers various investment products like: Gold Mohurs 8% saving bonds Public Provident fund(PPF) Silver Mohurs Online investing with Axis Direct Mutual Funds IPOSmart Demat Account: An electronic setting provided by Axis bank to its users to hold funds in dematerialized form. Insurance Axis bank offers a spectrum of insurance products. time to time statements and total details about your investment.Investments: Investments are the best way of saving an individual’s cash. It provides facilities for funds transfer. At low premiums and higher returns insurance products are available for large. The products offered under this category are: Life Insurance: There variants under this category are: Max Life Online Term Plan Max Life Forever Young Pension Plan Max Life guaranteed Lifetime Income Plan Max Life Life Partner Perfect Super Plan Max Life Whole life Super Plan Max Life Fast Track Super Plan Max Life Life Gain Premier Max Life Maxis Super Max Life Shiksha Plus Super Home Insurance: The range of products are: Mediprime Wellsurance Executive Wellsurance Woman Wellsurance Family Individual Accident and Well Sickness Hospital Cash Policy: Motor Insurance Travel Insurance: The products on offer are: Travel Guard Insurance for Overseas Travel Student Guard Plus for Students Travelling Overseas Asia Guard Max Life Pradhan MantriJeewanJyotiBimaYojana Business Guard 38 . 4. EDUCATION LOAN Axis Bank provides education loans to well-deserved students who wants to go for higher education within India and abroad. Students who have taken admission in Graduation or Post Graduation courses in India and abroad can avail this loan. The tenure for axis bank gold loan is between 6 months to 36 months 6. However. 15 lakh. HOME LOANS Home loans offered by Axis Bank have great features like flexible tenures. A minimum amount of 3 lakhs can be borrowed under the Axis Bank Housing Loan scheme.LOANS: 1. 5. there is no upper limit on borrowing and it depends on the borrower’s repayment capability. 2. Tie-ups with all leading automobile manufacturers to ensure the best deals. With minimum documentation you can now secure a loan for an amount upto Rs. 3. transparent processing and quick service. Loan Against Fixed Deposits With assured investment returns and good interest rates. Network of more than 1000 channel partners in over 200 locations. opening an Axis Bank Fixed Deposit account offers the account holders better benefits as compared to regular savings accounts. TYPE AMOUNT RATE OF SECURITY ELIGIBILITY 39 . 1 Lakh. your search ends here. The interest rates charged by the bank under its housing loan scheme are fair and reasonable. Axis Bank Personal Loans are easy to get and absolutely hassle free. the customers also have the option to avail a loan based on their fixed deposit account. GOLD LOAN Axis bank gold loan offers a quick and hassle free financial solution to those who are in sudden financial exigency and own any gold ornament. CAR LOAN The most preferred financier for car loans in the country. This loan can help students in achieving their goals in life. With an Axis Bank Fixed Deposit account. PERSONAL LOAN If you're looking for a personal loan that's easy to get. Loan amounts offered beginning from Rs. a.00.50% Availability of Equitable sufficient. INTEREST Personal loan 15.00. to 12% As per the extent Person having 15. For the year 2014: Name Of the Banks Amt of advances State Bank Of India 1209828. life loan repayment. COMPARISON OF LOANS & ADVANCES OF SBI and AXIS BANK.00.000. insurance policy etc.45-9. Tangible 10. 11% p.72 AXIS Bank 196.96 40 . the property cannot be mortgage. Home loan 75.00.00.965.000 For all 10-12% Nil Graduation Courses 400.000 Education Loan 4.a instructions the income below 100.000 party guarantee studying abroad Car loan 1.00.00.000. mortgage of regular and property or other continuous tangible security source of income of adequate value for servicing the like NSC.000 9.000.000 Collateral Post graduation security professional courses Suitable Third 20.000 p. 066.For the year 2015: Name Of the Banks Amt of advances State Bank Of India 1.39 AXIS Bank 230.300.026.76 41 . 463.03 Interpretation: 42 .700.42 AXIS Bank 281.083.For the year 2016: Name Of the Banks Amt of advances State Bank Of India 1. Considering the above data we can say that year on year the amount of advances lent by State Bank of India has increased which indicates that the bank’s business is really commendable and the Credit Policy it has maintained is absolutely good. the two are taking divergent paths. So this bank enjoys the trust of its Customers a lot. SBI offers flexible tenures of loan repayment.000 to its headcount every year. The group plans to add between 75. Whereas ICICI bank do not have such good business SBI is ahead in terms of its business when compared to ICICI bank. SBI. Its major stocks are held by government of India. AXIS Bank. ADVANTAGES OF AXIS OVER SBI: AXIS is growing at a very fast rate with a total asset of Rs. 43 . on the other hand. 00. is setting up regional hubs where its workforce would be concentrated and plans to add 20. which had over 2 lacks employees.25468 trillion In the area of human relations.5. this implies that SBI has incorporated sound business policies in its bank. has reduced headcount through a voluntary retirement scheme and is cautious about adding headcount.000 employees in the next few years AXIS Bank provide customer base services An area where it has been very aggressive.000 and 1. ADVANTAGES OF SBI OVER AXIS: SBI is the largest and oldest bank of India. is planning to add or more branches. It is also set to become the largest issuer of debit cards and is the second largest credit card issuer.State bank of India has vast experience in the field of SME (Small and Medium Enterprises) Financing. SBI have four national level Apex Training Colleges and 54 Learning Centers spread all over the country the Bank is Continuously engaged in skill enhancement of its employees. 44 . Some of the training programs are attended by bankers from banks in other countries. As it is the oldest name so it enjoys public trust a lot. which has over 14. SBI group.000 branches. lending schemes and risk management.***** OBJECTIVE OF RESEARCH Each research study has its own specific purpose. 4) To know the preference of loan & advances of SBI over AXIS. Our research study following objectives:- 1) To study the comparative analysis between SBI & AXIS bank on the basis of customer satisfaction. But the main aim of our research to find out the truth that is hidden and which has not been discovered as yet. 45 . It is like to discover to Question through the application of scientific procedure. 2) To know customer awareness regarding the products and services of SBI and AXIS bank. 3) To find the advantages of SBI over AXIS bank and vice versa. Researcher has no control over the variables of this type of research. SAMPLE AREA: Nallasopara SAMPLE SIZE: “This refers to the number of items to be selected from the universe to constitute a sample” In our research sample size is 50 to know the customer satisfaction & perception about the banks.RESEARCH METHODOLOGY TYPES OF RESEARCH My research is based on Descriptive. 46 . Quantitative research: .Chi-square test in my project. In short. The major purpose of descriptive research is description of the state of affairs as it exists at present. STATISTICAL TOOL. Qualitative Research:- In our research we need comparison as well the similarities between different banks.Quantitative research is based on the measurement of quantity or amount.Rank correlation method and 3. Qualitative and Quantitative research.I have applied 3 techniques in my project i. It is applicable to phenomena that can be expressed in terms of quantity. Qualitative research is especially important in the behavioral sciences where the aim is to discover the underline motives of human behavior. So we can use it in our research for collection of all the numerical data. Through such research we can analyses various factors which motivate to people to behave in a particular manner or which make people like or dislike a particular thing.e 1-weighted average method 2. So this based on all qualitative data. Descriptive Research:- Descriptive research includes surveys and fact finding enquires of different kinds. The questionnaire prepared for the customers of the SBI & ICICI bank to know their satisfaction level. Primary 2. internet etc.SOURES OF DATA COLLECTION While deciding about the method of data collection to be used for the study the researcher should keep to types of data. and the first time data will use Questionnaire and secondary means which are already available like annual report. 1. I used in my research primary data. as well as secondary data. magazines. Respondents give answer according to their will. SAMPLING TECHNIQUE It is a series of questions asked to individuals to obtain statistically useful information about a given topic. I used one questionnaire as a sampling technique. Primary means collected a fresh. Secondary Data. 47 . There was lack of time on the part of respondents.Complete data was not available due to company privacy and secrecy. so the coverage area is small according to the project need. 3. 2. 7. 4.The study is limited to a particular branch of SBI and AXIS bank. 8. 5.LIMITATION OF THE STUDY 1.The banking sector is too vast & it is not possible to cover each & every customer. Information may be biased because of the preference of the customers.Size Of the research may not be substantial. 6.As the Nallasopara dealt in survey.The survey was carried through questionnaire and the questions were based on perception. 48 . AGE OF THE RESPONDENTS ICICI Bank SBI 25YRS-35YRS 30 10 36YRS-45YRS 10 12 46YRS-55YRS 7 23 ABOVE 55YRS 3 05 Total 50 50 49 .2.ACCOUNTS ON WHICH BANK Frequency Percentage ICICI BANK 50 50 SBI 50 50 Interpretation: From the above table 50% having accounts in ICICI BANK and 50% having in SBI.DATA ANALYSIS & INTERPRETATION Q.1. Q. Interpretation: Above table shows, in case of SBI maximum customers are of age group between 46-55 i.e 46% where as in case of ICICI Bank maximum 60% customer are of age group between 25- 35 yrs. Q.3. - REASON TO CHOOSE THE BANKS SBI SERVICES Rank 1 Rank 2 Rank 3 Rank4 Rank5 Efficient customer service 10 12 14 8 6 Time saving 20 8 11 7 4 transaction costs 11 17 8 9 5 Technology 7 9 12 18 4 ATMs 2 4 5 8 31 50 Interpretation: Above table shows that, Maximum respondents give rank 1 to time saving where as maximum respondents give lowest rank to ATMs. Analysis: Applying weighted average method. SERVICES Rank Rank Rank Rank Rank Calculation Weighted R1 1 2 3 4 5 average Efficient 10 12 14 8 6 138 2.76 3 customer service Time saving 20 8 11 7 4 117 2.34 5 transaction 11 17 8 9 5 130 2.60 4 costs Technology 7 9 12 18 4 153 3.06 2 2 4 5 8 31 212 4.24 1 ATMs Above calculations shows that the highest weighted average is of ATMs. ICICI BANK SERVICES Rank 1 Rank 2 Rank 3 Rank4 Rank5 Efficient customer service 2 7 11 20 10 Time saving 5 12 8 11 14 transaction costs 4 9 17 8 12 Technology 8 18 9 7 8 ATMs 31 4 5 4 6 Interpretation: 51 Above table shows that maximum customers give rank 1 to ATMs where as maximum customer gives time saving to lowest rank of ICICI bank Services. Analysis: Applying weighted average method. SERVICES Rank Rank Rank Rank Rank Calculation Weighted R2 1 2 3 4 5 average Efficient 2 7 11 20 10 179 3.58 2 customer service Time saving 5 12 8 11 14 167 3.34 3 transaction 4 9 17 8 12 185 3.7 1 costs Technology 8 18 9 7 8 139 2.78 4 ATMs 31 4 5 4 6 100 2 5 Above calculation shows that transaction cost is on Rank 1 for the ICICI customer where as ATMs are on the last rank. Applying rank Correlation method over these two banks weighted average. R1 R2 D= R1-R2 D2 3 2 1 1 5 3 2 4 4 1 3 9 2 4 -2 4 1 5 -4 16 TOTAL 34 1-6∑D2 / N3- N = 1- 6 X 34 / (5)3 – 5 = 1- 204 / 125 -5 =- 1.69 S0, there are negative relationship between these two banks. Q.4- TYPE OF ACCOUNT IN THE BANKS SBI ICICI BANK FIXED ACCOUNT 16(32%) 11(22%) SAVING ACCOUNT 15(30%) 19(38%) 52 TYPE OF SERVICE PREFER THE MOST (for SBI & ICICI BANK) SBI ICICI Bank ATM SERVICE 22(44%) 18(36%) INTERNET BANKING 5(10%) 11(22%) MOBILE BANKING 6(12%) 12(24%) CORE BANKING SYSTEM 17(34%) 9(18%) Total 50 50 53 .CURRENT ACCOUNT 11(22%) 12(24%) OTHERS 8(16%) 8(16%) Total 50 50 Interpretation: Above table shows that 32% and 22% customers having fixed account in SBI and ICICI respectively where as only 16% customers having others accounts in both banks. Q.5. 6. 54 .SATISFACTION LEVEL SBI ICICI Bank YES 34 26 QUITE SATISFY 14 21 NO 2 3 Interpretation: Out of 50 only 34 respondents are fully satisfied with SBI and 26 with ICICI bank.Interpretation: Above table shows that 44% customers prefer the ATM services of SBI where as 6% prefer to mobile banking and in ICICI 36% give preference to ATM services and 24% to mobile banking. Q. e.7-AWARENESS ABOUT THE PRODUCT & SERVICES YES NO SBI 39(78%) 11(22%) ICICI BANK 34(68%) 16(32%) Interpretation: Above table shows that maximum customers are aware about their bank’s products and services. Analysis. Q. 34% are only satisfied with its advance products.e. 40% customers are highly satisfied with the advance products of SBI where as in case of ICICI maximum customers i.8.Applying WEIGHTED AVERAGE METHOD 55 . SBI ICICI BANK HIGHLY SATISFIED 20(40%) 6(12%) SATISFIED 15(30%) 17(34%) AVERAGE 06(12%) 15(30%) DISSATISFIED 04(8%) 07(14%) HIGHLY DISSATISFIED 5(10%) 05(10%) Interpretation: Above table shows that maximum i.Q. .SATISFACTION LEVEL OF LOAN & ADVANCES PRODUCTS. Q.SCALE W X1 WX1 X2 WX2 HIGHLY 5 20 100 6 30 SATISFIED SATISFIED 4 15 60 17 68 AVERAGE 3 6 18 15 45 DISSATISFIED 2 4 8 7 28 HIGHLY 1 5 5 5 5 DISSATISFIED TOTAL( ∑ ) 15 191 176 WEIGHTED AVERAGE SBI = WX1 / W ICICI BANK = WX 2 / W = 191 / 15 = 176 / 15 = 12. PREFRENCE NO PREFRENCE SBI 26 24 ICICI BANK 28 22 Interpretation: Maximum customer is prefer to take loan from their own bank. Analysis: to know the preference of SBI over ICICI bank’s loan & advances i am applying chi- square test. SBI is more preferable than ICICI bank.73 So.73 = 11. PREFRENCE NO PREFRENCE TOTAL SBI 26 24 50 ICICI BANK 28 22 50 56 .9-PREFRENCE OF LAON & ADVANCES SCHEMES OF SBI OVER ICICI. TOTAL 54 46 100 Observed values Expected Values O-E (O-E)2 (O-E)2/ E O E 26 27 1 1 0.148 22 23 -1 1 0. means there is a preference of SBI loans & advances over ICICI bank.037 24 23 1 1 0. = 0.46 Calculated value= 0.271 It shows that calculated value is lower than table value.043 TOTAL 0. So.10-FEATURES YOU LIKE MOST IN TODAY’S BANKING SCENARIO SBI ICICI BANK LESS PAPER WORK 18 12 ATTRACTIVE INTEREST 5 6 RATE TRANSPARENCY 6 9 SIMPLE & FAST 2 3 PROCESSING FLEXIBILITY TO CHOOSE 11 17 57 . hypothesis is accepted.271 Degree of freedom= (c-1) (r-1) = (2-1) (2-1) =1 Level of significance at 5%.043 28 27 2 4 0. Q. e 34% like it because of flexible EMI base loan or over draft.SATIFY WITH PRESENT BANKING SYSTEM RESPONDENTS Highly Satisfied 20 Satisfied 45 Average 18 Dissatisfied 10 Highly dissatisfied 07 58 .11.ON EMI BASE LOAN OR AN OVERDRAFT LONGER TENURE LOAN 6 2 FOR EASE OF REPAYMENT SPECIALLY DESIGN 2 1 PRODUCTS FOR SELF EMPLOYED Interpretation.Above data shows that maximum 36% 0f SBI customers are today’s banking scenario because of less paper work where as in case of ICICI Bank maximum customers i. Q. 59 .Interpretation: Above data shows that maximum of customers i. -The age group of 25yrs – 35yrs respondents mostly having accounts in ICICI bank where as maximum old age respondents having account in SBI. FINDINGS -Most of the respondents choose SBI because the bank is giving more loan and advances facility to the customers.e 45% are satisfied with the present banking system. reason among this that maximum customer rely over SBI for their long term money deposits. 2. -36% of SBI customers well known about its loans & advances products where as.The bank can post a list of services that they are rendered to the customers inside the bank Premises And they can post demo of all these services in their bank website. in ICICI bank 16% customers don’t know about the loan & advances product of it. -Even in case of loan & advances customers not only give preference to SBI but they are also satisfied with it. -maximum customers are satisfied with the more no.e less paper work where as they also like the EMI base loan scheme. -Customer awareness programme is required so that more people should attract towards loans & advances product. The bank has to take some initiatives. of ATM facilities of SBI where as ICICI customers like it low transaction cost. 60 . RECOMMENDATIONS 1.. -Maximum customers like the most in banking services i.Since many of the respondents are not aware of their product & services..According to my knowledge and perception maximum old age customers found SBI more reliable bank as a public sector bank where as mostly youngsters have interest in ICICI bank. -In ICICI bank maximum customers having saving accounts where as in SBI maximum customers have fixed account. -Maximum customers are satisfied with today’s banking scenario. 4. 5. CONCLUSION We can conclude that the financial sector is a nerve system of Indian economy.3. The banks should focus on- 61 .ICICI needs to increase its lending money to attract the more people towards its loan and advances products. For steady growth in economy innovations and development in financial sector is very important.ICICI should concentrate more over the people are falling under the age group of 45-55 yrs. .SBI should concentrate more on the respondents are falling under the age group 25yrs – 35yrs. But SBI bank is little bit below the line in young customer handling when compared to ICICI bank. But SBI should be considering more reliable because of public sector bank & because of its various schemes. BIBLIOGRAPHY 62 .-Launch Innovative product -Customized advance products -Better customer services -Fastest customer’s problem solving techniques -Customer retention Since both the banks are competing equally with each other. The ICICI bank is little bit below the line in concentrating on Loan & advances products & services then to SBI bank. com ANNEXURE. IVth edition 3.Preston Mcafee. Banking and Practices. Money. Banking. IV edition - 2. International trade & Public finance 2 nd edition 4-Business world 2010 February volume.ICICIbank.M. WEBSITES www. P.1 QUESTIONNAIRE 63 .com www.statebankofindia. D.Varshnnew.moneycontrol. Introduction to economic analysis. R.Mithani.rbi.BOOKS or JOURNALS 1.N.com www.com www. Income level: a) Rs.50. Gender: a) Male □ b) Female □ 4.150.Rs. Age: a) □ 25yrs.450. Occupation: a) House wife (b) Students (c) Salaried person d) Business man (e) Professionals (f) Supervisor g) Managerial (h) pensioner 6.001-Rs. What type of account do you have in bank? 64 . Educational Qualification: a) Illiterate (b) School (c) UG (d) PG e) Professional Course (f) Others 5.150.000 7.45yrs c) □ 46 – 55 yrs d) □ above 55 yrs 3. Name: 2.350.1.000 – Rs.001-Rs.350.000 b) Rs.250.000 d) Rs. 450.35 yrs b) □ 36 yrs .001.000 c) Rs. Why you choose the particular bank? a) Efficient customer service b) more ATMs c) Time saving d) transaction costs e) Technology 9.250.000 e) Above Rs. In which bank do you have an account? a) ICICI bank (b) SBI bank 8. Are you aware about the product and services provided by these banks? a) Yes b) No 12. a) Saving b) Fixed c) Current d) Others………. 15. What do you feel by services provided by SBI and ICICI bank in advance product? a) Highly Satisfactory (b) satisfied c) average d) dissatisfied e) Highly dissatisfied 13. Are you taking the loan from your bank? a) Yes b) No 14. Are you satisfied with it? a) Yes b) quite satisfy c) No 11. 10. What Features do you like most in today’s banking scenario regarding the loans? a) Less paper work b) Transparency c) Less interest rates d) longer tenure loan for ease of repayment e) Flexibility to choose EMI base loan or an over draft f) Specially design products for self employed. Are you satisfied with today’s banking system? a) Yes b) No 65 . Which type of service you prefer the most in your bank? a) ATM service b) Internet banking c) Mobile banking d) core banking 10.
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