A Study of Financial Performance: A Comparative Analysis of Sbi and Icici Bank

International Journal of Marketing, Financial Services & Management Research
Vol.1 Issue 11, November !1, ISSN "" #$

%nline available at &&&.in'ianresearch(ournals.com
A STUDY OF FINANCIAL PERFORMANCE: A COMPARATIVE
ANALYSIS OF SBI AND ICICI BANK
DR. ANURAG. B. SINGH*; MS. PRIYANKA TANDON**
* Associate Professor
LDC Institute of Technical Studies
Soraon, Allahabad (Uttar Pradesh)
India
** Assistant Professor
LDC Institute of Technical Studies
Soraon, Allahabad
India
_____________________________________________________________________________________
ABSTRACT
Banin! Sector "la#s an i$"ortant role in econo$ic de%elo"$ent of a countr#& The banin!
s#ste$ of India is featured b# a lar!e net'or of ban branches, ser%in! $an# inds of financial
ser%ices of the "eo"le& The State Ban of India, "o"ularl# no'n as SBI is one of the leadin!
ban of "ublic sector in India& SBI has () Local *ead +ffices and ,- .onal +ffices located at
i$"ortant cities throu!hout the countr#& ICICI Ban is second lar!est and leadin! ban of "ri%ate
sector in India& The Ban has /,,00 branches and 1,233 AT4s in India& The "ur"ose of the stud#
is to e5a$ine the financial "erfor$ance of SBI and ICICI Ban, "ublic sector and "ri%ate sector
res"ecti%el#& The research is descri"ti%e and anal#tical in nature& The data used for the stud# 'as
entirel# secondar# in nature& The "resent stud# is conducted to co$"are the financial
"erfor$ance of SBI and ICICI Ban on the basis of ratios such as credit de"osit, net "rofit
$ar!in etc& The "eriod of stud# taen is fro$ the #ear /33-632 to /3((6(/& The stud# found that
SBI is "erfor$in! 'ell and financiall# sound than ICICI Ban but in conte5t of de"osits and
e5"enditure ICICI ban has better $ana!in! efficienc# than SBI&
KEYWORDS7 Credit De"osit 8atio, ICICI, 9et Profit 4ar!in, 9et 'orth 8atio, Ad%ances, SBI&
_________________________________________________________________________
INTRODUCTION
An efficient banin! s#ste$ is reco!ni:ed as basic re;uire$ent for the econo$ic de%elo"$ent of
an# econo$#& Bans $obili:e the sa%in!s of co$$unit# into "roducti%e channels& The banin!
s#ste$ of India is featured b# a lar!e net'or of ban branches, ser%in! $an# inds of financial
needs of the "eo"le&
The State Ban of India, "o"ularl# no'n as SBI is one of the leadin! bans in India& The State
Ban <rou", 'ith o%er (1,333 branches "ro%ides a 'ide ran!e of banin! "roducts throu!h its
%ast net'or of branches in India and o%erseas, includin! "roducts ai$ed at 9on68esident
Indians (98Is)& The head;uarter of SBI is at 4u$bai& SBI has () Local *ead +ffices and ,-
.onal +ffices that are located at i$"ortant cities throu!hout the countr#& It also has around (03
56
branches out of the countr#& It has a $aret share a$on! Indian co$$ercial bans of about /3=
in de"osits and loans&
The roots of the State Ban of India rest in the first decade of (>th centur#, 'hen the Ban of
Calcutta later on rena$ed the Ban of Ben!al, 'as established on / ?une (231& The Ban of
Ben!al 'as one of three Presidenc# bans, the other t'o bein! the Ban of Bo$ba#
(incor"orated on (, A"ril (2)3) and the Ban of 4adras (incor"orated on ( ?ul# (2)0)& @ith the
result of the ro#al charters all three Presidenc# bans 'ere incor"orated as Aoint stoc co$"anies
and recei%ed the e5clusi%e ri!ht to issue "a"er currenc# in (21( 'ith the Pa"er Currenc# Act&
The# retained this ri!ht till the for$ation of the 8eser%e Ban of India& The Presidenc# bans
a$al!a$ated on /- ?anuar# (>/(, and rena$ed I$"erial Ban of India& The I$"erial Ban of
India re$ained a Aoint stoc co$"an#&
The State Ban of India 'as constituted on (st ?ul# (>,,, "ursuant to the State Ban of India
Act, (>,, (the BSBI ActB) for the "ur"ose of creatin! a state6"artnered and state6s"onsored ban
inte!ratin! the for$er I$"erial Ban of India& In (>,>, the State Ban of India (Subsidiar#
Bans) Act 'as "assed, enablin! the Ban to tae o%er ei!ht for$er state associated bans as its
subsidiaries&
The State Ban of IndiaCs is lar!est ban, 'ith a""ro5i$atel# >,333 branches in India and ,)
international offices& Its Associate Bans ha%e a do$estic net'or of around ),133 branches,
'ith stron! re!ional ties& The Ban also has subsidiaries and Aoint %entures outside India,
includin! Duro"e, the United States, Canada, 4auritius, 9i!eria, 9e"al, and Bhutan& The Ban
has the lar!est retail banin! custo$er base in India&
SUBSIDIARIES OF SBI
State Ban of Bianer E ?ai"ur
State Ban of *#derabad
State Ban of 4#sore
State Ban of Patiala
State Ban of Patiala
State Ban of Tra%ancore
ICICI BANK-PROFILE
ICICI Ban is second lar!est and leadin! ban of "ri%ate sector in India& It s head;uarter is in
4u$bai, India& Accordin! to Forbes State Ban of India is the />th $ost re"uted co$"an# in the
'orld& The Ban has /,,00 branches and 1,233 AT4s in India& In (>>2 ICICI Ban launched
internet banin! o"erations& The Ban offers a 'ide ran!e of banin! "roducts and financial
ser%ices to the cor"orate and retail custo$ers& It also "ro%ides ser%ices in the areas of %enture
ca"ital in%est$ent banin!, asset $ana!e$ent and life and non6life insurance& ICICI BanCs
e;uit# shares are listed in India on Bo$ba# Stoc D5chan!e (BSD) and the 9ational Stoc
57
D5chan!e (9SD) and its A$erican De"ositar# 8ecei"ts (AD8s) are also listed on the 9e' Gor
Stoc D5chan!e (9GSD)&
ICICI Ban li$ited is $aAor banin! and financial ser%ices or!ani:ation in India& The ban is the
second lar!est ban in India and the lar!est "ri%ate sector ban in India b# $aret ca"itali:ation&
The# are "ublicl# held banin! co$"an# en!a!ed in "ro%idin! a 'ide ran!e of banin! and
financial ser%ices includin! co$$ercial banin! and treasur# o"erations& The ban and their
subsidiaries offers a 'ide ran!e of banin! and financial ser%ices includin! co$$ercial banin!,
retail banin!, "roAect and cor"orate finance, 'orin! ca"ital finance, insurance, %enture ca"ital
and "ri%ate e;uit#, in%est$ent banin!, broin! and treasur# "roducts and ser%ices& The# offer
throu!h a %ariet# of deli%er# channels and throu!h their s"eciali:ed subsidiaries in the area of
in%est$ent banin!, life and non6life insurance, %enture ca"ital and assets $ana!e$ent& The
ban has a net'or of /30, branches and about ,,(2 AT4s in India and "resence in (2
countries& The# ha%e subsidiaries in the United Hin!do$, 8ussia and Canada, branches in United
States, Sin!a"ore, Bahrain, *on!6Hon!, Srilana, Iatar and Dubai International finance centre
and re"resentati%e offices in United Arab D$irates, China, South Africa, Ban!ladesh, Thailand,
4ala#sia and Indonesia& +ur UH subsidiar# has established branches in Bel!iu$ and <er$an#&
The ban e;uit# shares are listed in India on Bo$ba# Stoc D5chan!e and 9ational stoc
e5chan!e of India Li$ited and their A$erican De"ositor# 8ecei"ts (AD8s) are listed on 9GSD&
The ban is first Indian bans listed 9GSD&
SUBSIDIARIES OF ICICI BANK
NATIONAL INTERNATIONAL
ICICI Lo$bard ICICI Ban UH PLC
ICICI Prudential Life Insurance Co$"an# ICICI Ban Canada
Ltd
ICICI Securities Li$ited ICICI Ban Durasia LLC
ICICI Prudential Asset 4ana!e$ent
Co$"an# Li$ited
ICICI Jenture
ICICI direct&co$
ICICI Foundation
OBJECTIVE OF THE STUDY
1 To stud# the financial "erfor$ance of SBI and ICICI Ban&
2 To co$"are the financial "erfor$ance of SBI and ICICI Ban&
RESEARCH METHODOLOGY
58
In the "resent stud#, an atte$"t has been $ade to $easure, e%aluate and co$"are the financial
"erfor$ance of SBI and ICICI Ban 'hich one related to the "ublic sector and "ri%ate sector
res"ecti%el#& The stud# is based on secondar# data that has been collected fro$ annual re"orts of
the res"ecti%e bans, $a!a:ines, Aournals, docu$ents and other "ublished infor$ation& The stud#
co%ers the "eriod of , #ears i&e& fro$ #ear /33-632 to #ear /3((6(/& 8atio Anal#sis 'as a""lied
to anal#:e and co$"are the trends in banin! business and financial "erfor$ance& 4ean and
Co$"ound <ro'th 8ate (C<8) ha%e also been de"lo#ed to anal#:e the trends in banin!
business "rofitabilit#&
LIMITATION OF THE STUDY
Due to constraints of ti$e and resources, the stud# is liel# to suffer fro$ certain li$itations&
So$e of these are $entioned here under so that the findin!s of the stud# $a# be understood in a
"ro"er "ers"ecti%e&
The li$itations of the stud# are7
1 The stud# is based on the secondar# data and the li$itation of usin! secondar#
data $a# affect the results&
2 The secondar# data 'as taen fro$ the annual re"orts of the SBI and ICICI Ban&
It $a# be "ossible that the data sho'n in the annual re"orts $a# be 'indo' dressed
'hich does not sho' the actual "osition of the bans&
Financial anal#sis is $ainl# done to co$"are the !ro'th, "rofitabilit# and financial soundness of
the res"ecti%e bans b# dia!nosin! the infor$ation contained in the financial state$ents&
Financial anal#sis is done to identif# the financial stren!ths and 'eanesses of the t'o bans b#
"ro"erl# establishin! relationshi" bet'een the ite$s of Balance Sheet and Profit E Loss
Account& It hel"s in better understandin! of bans financial "osition, !ro'th and "erfor$ance b#
anal#:in! the financial state$ents 'ith %arious tools and e%aluatin! the relationshi" bet'een
%arious ele$ents of financial state$ents&
FOR THIS PURPOSE THE FOLLOWING PARAMETERS HAVE BEEN STUDIED
1. Credit De"osit 8atio
2. Interest D5"enses to Total D5"enses
3. Interest Inco$e to Total Inco$e
4. +ther Inco$e to Total Inco$e
5. 9et Profit 4ar!in
6. 9et 'orth 8atio
7. Percenta!e Chan!e in 9et Profits
8. Percenta!e Chan!e in Total Inco$e
9. Percenta!e Chan!e in Total D5"enditure
10. Percenta!e Chan!e in De"osits
11. Percenta!e Chan!e in Ad%ances
CREDIT DEPOSIT RATIO:-
Credit6De"osit 8atio is the "ro"ortion of loan6assets created b# a ban fro$ the de"osits
recei%ed& Credits are the loans and ad%ances !ranted b# the ban& In other 'ords it is the a$ount
lent b# the ban to a "erson or an or!ani:ation 'hich is reco%ered later on& Interest is char!ed
fro$ the borro'er& De"osit is the a$ount acce"ted b# ban fro$ the sa%ers and interest is "aid to
the$&
59
TABLE 1.1 - CREDIT DEPOSIT RATIO
(I9 PD8CD9T)
YEAR SBI ICICI
2!-" --&,- 2)&>>
2"-# -)&>- >(&))
2#-1 -0&,1 >3&3)
21-11 -1&0/ 2-&2(
211-12 -2&,3 >/&/0
MEAN -1&(2) 2>&03/
CGR (&(> 2&,(
Source7 Annual 8e"orts of SBI and ICICI fro$ /33-632 to /3((6(/
FIG. NO. 1.1:- CREDIT DEPOSIT RATIO
Table (&( de"icts that o%er the course of fi%e financial "eriods of stud# the $ean of Credit
De"osit 8atio in ICICI 'as hi!her (2>&03/=) than in SBI (-1&(2)=)& But the Co$"ound <ro'th
8ate in SBI lo'ers (&(>= than in ICICI (2&,(=)& In case of SBI the credit de"osit ratio 'as
hi!hest in /3((6(/ and lo'est in /33>6(3& But in case of ICICI credit de"osit ratio 'as hi!hest in
/3((6(/ and lo'est in /33-632& This sho's that ICICI Ban has created $ore loan assets fro$
its de"osits as co$"ared to SBI&
INTEREST E$PENSES TO TOTAL E$PENSES:-
Interest D5"enses to Total D5"enses re%eals the e5"enses incurred on interest in
"ro"ortion to total e5"enses& Bans acce"ts de"osits fro$ sa%ers and "a# interest on these
accounts& This "a#$ent of interest is no'n as interest e5"enses& Total e5"enses include the
a$ount s"ent in the for$ of staff e5"enses, interest e5"enses, o%erhead e5"enses and other
o"eratin! e5"enses etc&
60
TABLE 1.2:- INTEREST E$PENSES TO TOTAL E$PENSES
(I9 PD8CD9T)
YEAR SBI ICICI
2!-" 1(&2, 11&(0,
2"-# 10&/- 1)&(3
2#-1 1(&1/ 13&-(
21-11 ,)&>0 13&-3
211-12 ,-&>3 1,&(>
MEAN ,>&> 10&01
CGR 61&02 6(&)1
FIG.NO.1.2:- INTEREST E$PENSES TO TOTAL E$PENSES
The table (&/ sho's that the ratio of interest e5"enses to total e5"enses in SBI 'as hi!hl#
%olatile it increased fro$ 1(&2, "er cent to 10&/- "er cent durin! the "eriod /33-632 to /33263>&
After'ards it 'as decreased till /3(36(( and then a!ain increased to ,-&>3 "er cent& The ratio of
interest e5"enses to total e5"enses in ICICI 'as also decreased fro$ 11&(0, "er cent to 1)&(3 "er
cent durin! the "eriod /33-632 to /33263>& It re$ain stable fro$ /33>6(3 to /3(36/3(( but
Further it 'as increased to 1,&(> "er cent in /3((6(/ & It has been found that the share of interest
e5"enses in total e5"enses 'as hi!her in case of SBI as co$"ared to ICICI, 'hich sho's that
"eo"le "referred to in%est their sa%in!s in SBI than ICICI&
INTEREST INCOME TO TOTAL INCOME:-
Interest Inco$e to Total Inco$e sho's the "ro"ortionate contribution of interest inco$e
in total inco$e& Bans lend $one# in the for$ of loans and ad%ances to the borro'ers and
61
recei%e interest on it& This recei"t of interest is called interest inco$e& Total inco$e includes
interest inco$e, non6interest inco$e and o"eratin! inco$e&
TABLE 1.%:-INTEREST INCOME TO TOTAL INCOME IN SBI AND ICICI
(I9 PD8 CD9T)
YEAR SBI ICICI
2!-" 20&2> --&1(
2"-# 20&)3 ->&/>
2#-1 2/&,2 --&>3
21-11 2)&)> -2&,(
211-12 22&(/ 23&>/
MEAN 2)&)> -2&2)
CGR ,&3) )&/1
FIG.NO.1.% INTEREST INCOME TO TOTAL INCOME IN SBI AND ICICI
The table (&0 re"resents that the ratio of interest inco$e to total inco$e in SBI and ICICI both is
;uite stable and %olatile o%er the #ears& The !ro'th rate of SBI is ,&3) 'hile that of ICICI is
)&/1& Thus, the "ro"ortion of interest inco$e to total inco$e in SBI 'as hi!her than that of
ICICI, 'hich sho's that "eo"le "referred SBI to tae loans and ad%ances&
OTHER INCOME TO TOTAL INCOME:-
+ther inco$e to total inco$e re%eals the "ro"ortionate share of other inco$e in total
inco$e& +ther inco$e includes non6interest inco$e and o"eratin! inco$e& Total inco$e includes
interest inco$e, non6interest inco$e and o"eratin! inco$e&
62
TABLE 1.&:-OTHER INCOME TO TOTAL INCOME IN SBI AND ICICI
(I9 PD8CD9T)
YEAR SBI ICICI
2!-" (1&(3 //&02
2"-# (1 /3&-3
2#-1 (- //&3>
21-11 (1 /(&)2
211-12 (( (>&3-
MEAN (,&// /(&))
CGR 60(&1 6()&-
Source7 Annual 8e"orts of SBI and ICICI Ban fro$ /33-632 to /3((6(/
FIG.NO.1.& OTHER INCOME TO TOTAL INCOME IN SBI AND ICICI
The table (&) sho's that the ratio of other inco$e to total inco$e 'as decreased fro$ (1&(3 "er
cent in /33-632 to ((&33 "er cent in /3((6(/ in case of SBI& *o'e%er, the share of other inco$e
in total inco$e of ICICI 'as also decreased fro$ //&02 "er cent in /33-632 to (>&3- "er cent
/3((6(/& The table sho's that the ratio of other inco$e to total inco$e 'as relati%el# hi!her in
ICICI (/(&))=) as co$"ared to SBI ((,&//=) durin! the "eriod of stud#&
NET PROFIT MARGIN:-
9et Profit 4ar!in re%eals the financial results of the business acti%it# and efficienc# of
$ana!e$ent in o"erations& The table ,&2 sho's the net "rofit $ar!in in SBI and ICICI durin! the
Period /33,631 to /33>6(3&
63
TABLE-1.':-NET PROFIT MARGIN IN SBI AND ICICI
(I9 PD8CD9T)
YEAR SBI ICICI
2!-" (/&1) ((&2(
2"-# (0&(( ((&),
2#-1 (3&,) (0&1)
21-11 2&,, (-&,/
211-12 >&-0 (-&),
MEAN (3&>( ()&0-
CGR /0&3/ )-&-
FIG. NO.1.' NET PROFIT MARGIN IN SBI AND ICICI
The table (&, re%eals that the ratio of net "rofits to total inco$e of ICICI 'as %aried fro$ ((&2(
"er cent to (-&), "ercent 'hereas in case of SBI it is not stable& It increased to (0&(( "ercent
fro$ (/&1) "ercent in /33263> then further decreased to (3&,) "ercent in /33>6(3 and 2&,,
"ercent in /3(36(( and finall# increased to >&-0 "ercent in /3((6(/ durin! the "eriod of , #ears
of stud#& *o'e%er, the net "rofit $ar!in 'as hi!her in ICICI (()&0-=) as co$"ared to SBI
((3&>(=) durin! the "eriod of stud#& But it 'as continuousl# decreased fro$ /33-632 to /3((6(/
in ICICI& Thus, the ICICI has sho'n co$"arati%el# lo'er o"erational efficienc# than SBI&
NET WORTH RATIO:-
9et 'orth 8atio is used for $easurin! the o%erall efficienc# of a fir$& This ratio establishes the
relationshi" bet'een net "rofit and the "ro"rietor s funds&
64
TABLE 1.( NET WORTH RATIO
(I9 PD8CD9T)
YEAR SBI ICICI
2!-" (0&-3 2&>)
2"-# (,&-) -&,2
2#-1 (0&>( -&->
21-11 (/&2) >&0,
211-12 ()&01 (3&-3
MEAN ()&(( 2&2-
CGR )&2- (>&12
FIG.NO.1.( NET WORTH RATIO
It is clear fro$ the table (&1 that the net 'orth ratio of SBI 'as increased fro$ (0&-3 "er cent to
()&01 "er cent durin! /33-632 to /3((6(/, and decreased in /33>6(3 and /3(36/3((& @hereas
the ratio 'as increased fro$ 2&>) "er cent to (3&-3 "er cent in ICICI& The table sho'ed that the
net 'orth ratio 'as hi!her in SBI (()&((=) as co$"ared to ICICI (2&2-=) durin! the "eriod of
stud#, 'hich re%ealed that SBI has utili:ed its resources $ore efficientl# as co$"ared to ICICI&
GROWTH OF PROFIT:-
65
9et "rofit 8atio is used for $easurin! the "rofitabilit# of the fir$& It is calculated b# di%idin! net
"rofit b# net sales $ulti"lied b# (33& It establishes the relationshi" bet'een the net "rofit and
sales&
TABLE 1.( GROWTH OF PROFIT IN SBI AND ICICI
(I9 C8+8DS)
SBI ICICI
YEAR PROFIT ) CHANGE PROFIT ) CHANGE
2!-" 1-/> **.. )(,-&-0 ***
2"-# >(/( 0,&,= 0-,2&(0 6>&1(
2#-1 >(1( )>= )3/)&>2 -&(3
21-11 2/1, 6>&2= ,(,(&02 /-&>
211-12 ((-3- )/= 1)1,&/1 /,&,3
MEAN 2>>1&1 )-((&)>
CGR -0&>- ,,&)>
Source7 Annual 8e"orts of SBI and ICICI fro$ /33-632 to/3((6(/
FIG.NO.1.( GROWTH OF PROFIT IN SBI AND ICICI
The table (&2 hi!hli!hts that the $ean %alue of net "rofit 'as hi!her in SBI (8s& 2>>1&1 crores)
as co$"ared to that in ICICI (8s& )-((&> crores) durin! the "eriod of stud#& Further the !ro'th
66
rate of 9et Profits 'as also hi!her in SBI (-0&>-=) than that in ICICI (,,&)>=) durin! the stud#
"eriod& The table also sho's that the annual !ro'th rate of "rofit in SBI 'as hi!hest in the #ear
/33>6(3 and 'as ne!ati%e (6>&2=) in the #ear /3(36((& In ICICI, the annual !ro'th rate of "rofit
'as hi!hest in the #ear /3(36(((/-&>=) and 'as ne!ati%e in the #ear /33263> (6>&1(=)&
TOTAL INCOME:-
The total inco$e indicates the ru"ee %alue of the inco$e earned durin! a "eriod& The hi!her
%alue of total inco$e re"resents the efficienc# and !ood "erfor$ance&
TABLE 1.! GROWTH IN TOTAL INCOME OF SBI AND ICICI
(I9 C8+8DS)
SBI ICICI
YEAR INCOME ) CHANGE INCOME ) CHANGE
2!-" ,2,0)2&-) **.. 0>,11-&(> ***
2"-# -1,)->&-2 0(= 0>,/(3&0( 6(&(,=
2#-1 2,,>1/&3- (/&0= 0/,>>>&01 6(,&2=
21-11 >1,0/>&), (/&31= 00,32/&>1 3&/,=
211-12 (/3,2-/&>3 /,&)= )(,),3&-, /,&/=
MEAN 2-,,>2&,2 0-/2/&(()
CGR (3-&(, )&)>
FIG.NO.1.! GROWTH IN TOTAL INCOME OF SBI AND ICICI
The table (&> hi!hli!hts that the $ean %alue of total inco$e 'as hi!her in SBI (8s& 2-,,>2&,2
crores) as co$"ared to that in ICICI (8s& 0-/2/&(() crores) durin! the "eriod of stud#& *o'e%er
the rate of !ro'th re!ardin! total inco$e 'as hi!her in SBI ((3-&(, =) than in ICICI ()&)> =)
durin! the "eriod of stud#&
TOTAL E$PENDITURE:-
67
The total e5"enditure re%eals the "ro"ortionate share of total e5"enditure s"ent on the
de%elo"$ent of staff, interest e5"ended and other o%erheads& The hi!her %alue of total
TABLE 1.":- TOTAL E$PENDITURE OF SBI AND ICICI
(I9 C8+8DS)
SBI ICICI
YEAR E$PENDITURE ) CHANGE E$PENDITURE ) CHANGE
2!-" ,(,1(>&1// **.. 0,,,3>&)- ***
2"-# 1-,0,2&,, 03&)= 0,,),/&(- 3&(1=
2#-1 -1,->1&3/ ()&3(= /2,>-)&0- 6(2&/=
21-11 22,>,>&(/ (,&20= /-,>0(&,2 60&,>=
211-12 (3>,(21&>> //&-0= 0),>2,&,3 /,&/,=
MEAN -2,-2)&31 0/,-3&1(
CGR (((&,/ 6(&)-
FIG.NO.1." TOTAL E$PENDITURE OF SBI AND ICICI
The table (&(3 discloses that the $ean %alue of total e5"enditure 'as hi!her in SBI (8s&
-2,-2)&31 crores) as co$"ared to that in ICICI (8s& 0/,-3&1( crore) durin! the "eriod of stud#&
But the rate of !ro'th re!ardin! e5"enditure in ICICI 'as (6(&)- =) than that in SBI ((((&,/=)
durin! the sa$e "eriod& It is clear that ICICI is successful in decreasin! their total e5"enditure as
co$"ared to SBI& The table also hi!hli!hts that the annual !ro'th rate of e5"enditure in SBI 'as
hi!hest (03&3)) in the #ear /33263> and 'as lo'est (()&3() in the #ear /33>6(3& In ICICI, the
annual !ro'th rate of e5"enditure 'as ne!ati%e in the #ear /33>6(3 and /3(36(( i&e& (6(2&/3) and
(60&,>) res"ecti%el#& *ence it is clear that ICICI is $ore efficient as co$"ared to SBI in ter$s of
$ana!in! e5"enditure&
ADVANCES:-
Ad%ances are the credit facilit# !ranted b# the ban& In other 'ords it is the a$ount borro'ed b#
a "erson fro$ the Ban& It is also no'n as KCredit !ranted 'here the $one# is disbursed and
reco%er# of 'hich is $ade later on&
TABLE 1.#- TOTAL ADVANCES OF SBI AND ICICI
(I9 C8+8DS)
68
SBI ICICI
YEAR ADVANCES ) CHANGE ADVANCES ) CHANGE
2!-" )(1,-12&/3 **.. //,,1(1&32 ***
2"-# ,)/,,30&/3 03&(1= /(2,0(3&2, 60&/,=
2#-1 10(,>()&(, (1&)2= (2(,/3,&13 6(1=
21-11 -,1,-(>&), (>&-,= /(1,01,&>3 (>&)3=
211-12 21-,,-2&2> ()&1= /,0,-/-&11 (-&/1=
MEAN 1)1,,-2&2> //),1),
CGR (32&(1 (/&),
FIG.NO.1.#- TOTAL ADVANCES OF SBI AND ICICI
Table (&> "resents that the $ean of Ad%ances of SBI 'as hi!her (1)1,,-2&2>) as co$"ared to
$ean of Ad%ances of ICICI (//),1),)& 8ate of !ro'th 'as also hi!her in SBI ((32&(1 =) than in
ICICI ((/&),=)& Table also sho's the "er cent Chan!e in Ad%ances o%er the "eriod of , #ears& In
case of SBI Ad%ances 'ere continuousl# increased ('ith a decreasin! trend) o%er the "eriod of
stud#& *o'e%er Ad%ances in ICICI 'ere decreased till /33>6(3 but these 'ere increased in the
subse;uent #ears&
DEPOSITS:-
De"osit is the a$ount acce"ted b# ban fro$ the sa%ers in the for$ of current de"osits, sa%in!s
de"osits and fi5ed de"osits and interest is "aid to the$
69
TABLE 1.1-TOTAL DEPOSITS OF SBI AND ICICI
(I9 C8+8DS)
SBI ICICI
YEAR DEPOSITS ) CHANGE DEPOSITS ) CHANGE
2!-" ,0-,)30&>) **.. /)),)0(&3, ***
2"-# -)/,3-0&(0 02&32= /(2,0)-&2/ 6(3&1=
2#-1 23),((1&/0 2&01= /3/,3(1&13 6-&)3=
21-11 >00,>0/&2( (1&() //,,13/&(( ((&1=
211-12 (,3),1)-&01 ((&-= /,,,)>>&>1 (0&/=
MEAN 2(/,/0) //>,(->
CGR >)&/3 )&,/
FIG. NO.1.1:- TOTAL DEPOSITS OF SBI AND ICICI
Table (&(( "resents that the $ean of De"osits of SBI 'as hi!her (2(/,/0)) as co$"ared to $ean
of de"osits of ICICI (//>,(->=)& *o'e%er the rate of !ro'th 'as hi!her in SBI (>)&/3=) than
that in ICICI ()&,/=) durin! the "eriod of stud#& Table also sho's the "er cent Chan!e in
De"osits o%er the "eriod of , #ears& In case of SBI De"osits 'ere continuousl# fluctuatin! o%er
the "eriod of stud#& *o'e%er de"osits in ICICI 'ere decreased in /33263> and /33>6(3 but these
'ere increased in the #ear /3(36(( and /3((6(/ 'ith ((&1= and (0&/= res"ecti%el#&
FINDINGS AND CONCLUSIONS:-
The stud# found that the $ean of Credit De"osit 8atio in ICICI 'as hi!her (2>&03/ =) than in
SBI (-1&(2)=)& This sho's that ICICI Ban has created $ore loan assets fro$ its de"osits as
co$"ared to SBI& The share of interest e5"enses in total e5"enses hi!her in ICICI (10&01 =) as
co$"are to SBI (,>&>> =) and the "ro"ortion of interest inco$e to total inco$e 'as hi!her in
case of SBI(2)&)> = ) as co$"ared to ICICI (-2&2)=), 'hich sho's that "eo"le "refer ICICI to
in%est their sa%in!s and SBI to tae loans E ad%ances& The ratio of other inco$e to total inco$e
70
'as relati%el# hi!her in ICICI (/(&)) =) as co$"ared to SBI ((,&// =)& The 9et Profit 4ar!in
of ICICI is hi!her (()&0- =) 'hereas in SBI it 'as ((3&>> =), 'hich sho's that ICICI has
sho'n co$"arati%el# better o"erational efficienc# than SBI& The !ro'th rate of net "rofit is
-0&>-= in SBI 'hich is hi!her than ICICI 'hich is ,,&)>=& This sho's that SBI "erfor$ed 'ell
as co$"ared to ICICI& The $ean %alue of total inco$e 'as hi!her in SBI (2-,,>2&,2) as
co$"ared to that in ICICI (0-,/2/&(())& 9et 'orth ratio 'as also hi!her in SBI (()&(( =) than
ICICI (2&2- =), 'hich re%ealed that SBI has utili:ed its resources $ore efficientl# as co$"ared
to ICICI&
The $ean %alue of total e5"enditure 'as hi!her in SBI (8s& -2,-2)&31 crores) as co$"ared to
that in ICICI (8s&0/,,-3&1() and the co$bined !ro'th rate of e5"enditure 'as ne!ati%e (6(&)-=)
in the case of ICICI 'hereas in SBI it is (((&,/=& De"osits in SBI 'ere continuousl# increased&
*o'e%er de"osits in ICICI 'ere decreased ('ith a declinin! trend) till /33>6(3 but these 'ere
increased in the subse;uent #ears& In case of SBI Ad%ances 'ere continuousl# increased ('ith a
decreasin! trend) 'ith the co$bined !ro'th rate of ((32&(1 =), *o'e%er Ad%ances in ICICI
'ere decreased ('ith a declinin! trend) till /33>6(3 but these 'ere increased thereafter 'ith
co$bined !ro'th rate of ((/&), =)& It sho's that ICICI has suffered 'ith funds or a%oid
"ro%idin! ad%ances throu!h /33-632 to /33>6(3& *ence, on the basis of the abo%e stud# or
anal#sis banin! custo$er has $ore trust on the "ublic sector bans as co$"ared to "ri%ate
sector bans&
REFERENCES:-
1 4ahesh'ari E 4ahesh'ari, Banin! La' and Practices, *i$ala#a Publishin!
P%t Ltd, Allahabad, ""&(,/&
2 Pande#, I&4& Financial 4ana!e$ent, Jias Publishin!& *ouse P%t& Ltd& /33/, ""&
100&
3 Stud# $aterial, Financial 4ana!e$ent Unit (-, I<9+U, 9e' Delhi& ""&1
4 Trend and "ro!ress of banin!, 8BI, ""&//6/0
5 <a#lord A Free$an, L The Proble$ of Ade;uate ban Ca"italM, ;uoted b#
*o'ard D&
Crosse in his boo on 4ana!e$ent Policies for Co$$ercial Bans, ""& (,2&
6 De%elo"$ent 8esearch <rou" Stud#, 9o& //, De"art$ent of Dcono$ic Anal#sis
and Polic#, 8eser%e Ban of India, 4u$bai Se"te$ber /3, /333&
7 Financial #ear re"ort of SBI /33-632 to /3((6(/&
8 SBI bulletin "ublication /3(/&
Financial #ear re"ort of ICICI Ban /33-632 to /3((6(/&
1 ICICI Ban bulletin "ublication /3(/
2 8BI statistical table relatin! to bans /3((6(/&
I+,-./012-+ M3/-.0+45/
3 SBI and ICICI Ban annual re"ort /33-6(/&
71

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International Journal of Marketing, Financial Services & Management Research

Vol.1 Issue 11, November !1, ISSN "" #$

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