A

PROJECT REPORT
Comparative Study of Financial Performance of State Bank of India
and ICICI Bank
SUBMITTED TO
SAVITRIBAI PHULE PUNE UNIVERSITY
IN PARTIAL FULFILMENT OF THE COURSE
BACHELOR OF BUSINESS ADMINISTRATION (INTERNATIONAL
BUSINESS)
BY
SATYAM MAHESH GANGAWAR
SEAT NO: 1503
B.B.A.- Sem-III

UNDER THE GUIDANCE OF PROJECT GUIDE

Asst. Prof. Pankaj Ghorpade

MARATHAWADA MITRA MANDAL’s COLLEGE OF

COMMERCE, PUNE 302/A, DECCAN GYMKHANA, PUNE-
411004
YEAR 2022-23

I
 MARATHWADA MITRA MANDAL’S COLLEGE OF COMMERCE
202 A, Deccan Gymkhana, Pune – 411004.

DEPARTMENT OF BUSINESS ADMINISTRATION

CERTIFICATE

This is to certify that the project entitled Comparative Study of Financial

Performance of State Bank Of India and ICICI Bank is being submitted by
SATYAM MAHESH GANGAWAR in partial fulfillment for the degree of Bachelor of
Business Administration – International Business (SYBBA) under the guidance of Prof.
Pankaj Ghorpade. As per syllabus laid down by the Savitribai Phule Pune University
during academic year 2022-23.

Date:-

Exam Seat No.:- 1503

Internal Examiner External Examiner

II
 DECLARATION
This is to certify that the project-work titled Comparative Study of Financial
Performance of State Bank Of India and ICICI Bank has been completed
satisfactorily and submitted in partial fulfilment of Bachelor Degree in Business
Administration (International Business) of Savitribai Phule Pune University for the
academic year 2022-2023 by the following student of MARATHAWADA MITRA
MANDAL’s COLLEGE OF COMMERCE, PUNE 411004. My intention to
understanding this project lies towards enhancing my knowledge in the field of Financial
Management.

PROJECT GUIDE HOD PRINCIPAL

Asst. Prof. Pankaj Ghorpade Dr. Ashwini Kulkarni Dr. Devidas Golhar

III
 ACKNOWLEDGEMENT

I would like to express my sincere thanks to the Savitribai Phule Pune University
and Principal- Dr DEVIDAS GOLHAR, Head of Department- Dr. Ashwini
Kulkarni, and Marathwada Mitra Mandal’s college of Commerce for giving me the
opportunity to prepare and present this report.
“There is a good saying that the work is successfully completed if the person is
guided properly at the right time by the right person”, with that the good
opportunities that we receive as well as the efficient supervision and the most
valuable the internal guidance.
Hereby, I would like to express my deep gratitude towards our Asst. Prof. Pankaj
Ghorpade, who helped and guide me in project work. Her encouragement and
whole-hearted co-operation throughout the progress helped me in completion of
project.
Last but not the least I would like to thank my family and friends for their
encouragement and direct or indirect support in completion of the project.

SATYAM GANGAWAR

SYBBA (Financial Management)

IV
SR.NO. INDEX PAGE NO.

PART A REPORT ON GUEST LECTURE

1. Introduction 1

2. Observation 2

3. Conclusion 3

PART B A COMPARATIVE STUDY OF FINANCIAL

PERFORMANCE OF STATE BANK OF
INDIA AND ICICI BANK

1. Executives Summary 5

2. Introduction 6

3. Review of Literature 16

4. Research Methodology 19

A. Objectives of The Study 21

B. Scope of The Study 21

C. Limitation of The Study 22

D. Sources of Data Collection 22

i. Primary Data 23

ii. Secondary Data 28

5. Data Interpretation and Analysis 32

V
 6. Findings 37

7. Conclusion 38

8. Recommendations 39

9. Bibliography 40

PART C EXPERIENTIAL LEARNING

1. Accounts 41

2. Types of Accounts 42

3. Cheques & Types of Cheques 46

4. Deposit Slip 49

5. RTGS / NEFT Forms 50

VI
 PART A

REPORT ON GUEST LECTURE

LECTURE BY: - Adv. Dhananjay Dhainje.

Designation: - Cyber Crime & Cyber Security

Objectives:

• How to Produce Digital Evidence before the Court, How Court will take
cognizance of Digital Evidence.

• How to be protected from Hacking.

• How to do Cyber Crime Investigation, how to collect Digital Evidence.

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Observation:

Sir explained the tips which will keep us safe in the internet/online Space: -

 User Must Install Licensed Copy Antivirus and Firewall

 You Must Always Keep Operating System And Application Software

Updated

 Never share your Debit card and Credit card Credentials on Browser and
any Digital Wallet.

 We should always verify the Bank Account Holder before making any
payment through UPI.

• Don’t reply to “SPAM” E-mails.

• Please do not forward the forwarded Message without knowing the

Authenticity of the content of Message.

• Most of time for downloading app do not press allow buttons.

• Please Avoid Chatting with Stranger over the internet because Cyber
criminals are always looking for innocent Victims.

• Do not transfer any money to random person who you have not meet.

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Conclusion:

• Educate yourself, family, friends about the cybercrime. 

• We should be aware about the scam, cyber-crime.

• People are not victims but we should not take risk.

• Always be alert while using debit/credit cards for any online purpose.

• Always use space bar for strong password.

• A set of rules should be addressed the various categories of cyber-crime.

• All we have to do is protect ourselves by protecting our information.

• All levels of cybercrime tend to overlap. There are many of the crimes that can
not happen without the other.

• Almost every cybercrime is going to require some level of computer trespass

and hacking at some point in the process. This is the exact reason that
cybercrime is such a problem in today’s technology - society there is little
understanding of what out there is actually a crime and what is not when it
comes to being online.

• Cyber crime is going to continue to grow into a bigger and bigger problem
over time and if the laws and definitions do not grow along with the technology
advances then there is not going to be any thing left that can be done to
prevent cybercrime.

3
Opinion:

As we are developing technically day by day, we need to keep more

security, because there is good use as well as misuse. We should keep updating
our passwords and login ids too. As sir addressed,” we should not share our
transaction Id debit or credit card pins.”

4
 PART B

A COMPARATIVE STUDY OF FINANCIAL PERFORMANCE

OF STATE BANK OF INDIA AND ICICI BANK

1. Executives Summary

The banking system is vital to a country's economic process. With an

outsized network of branches and a various vary of economic services, India's
banking industry is giant. The aim of this analysis is to check the monetary results
of India's 2 largest non-public and 2 public banks. State Bank of India (SBI) and
ICICI Bank are the two largest banks in India in public and private sector.
Performance and efficiency of commercial banks are the key elements of
countries financial system. This comparative study of SBI and ICICI Bank
demonstrates that there are significant differences on the performance of SBI and
ICICI Bank in terms of Deposits, Advances, Investments, Net profit, and Total
assets. Based on the study, it can be said that SBI have an extensive operation
than ICICI Bank.

Keywords- SBI, ICIC, financial performance, public banks, private banks.

5
 2. Introduction

The banks are the blood to economies. The economy will freeze without a
sound banking system. The banking system helps the country to walk in path of
growth and development. Hence a sound banking system has immense
importance to strengthen an economy. For a sound banking system banks must
be financially sound. A perfect banking method can be identified as primary needs
of the economic improvement of any economy. Banks organize the savingsof their
peoples in an efficient connection. The banking method in India is characterized
by a huge channel of banking departments, providing different types of financial
requirements to the peoples.

An efficient banking system is recognized as basic requirement for the

economic development of any economy. Banks mobilize the savings of
community into productive channels. The banking system of India is featured by
a large network of bank branches, serving many kinds of financial needs of the
people.

The banking industry plays an important role in the economic development

of a country. It supplies the lifeblood-money that supports and fosters growth in
all the industries. Growth of the banking sector is measured by the increase in the
number of banks’ branches, deposits, credit, etc. In analyzing the banking sector,
it indicates the direction in which the country’s economy is moving.

6
 India has about 88 commercial banks including 31 private banks, 27 public
sector banks, and 38 foreign banks and in total, 53,000 bank branches, and 17,000
ATMs are servicing the nation. Public sector banks dominate the segment with
75 per cent of the total assets of the industry held by them. State Bank of India
(SBI) and ICICI Bank are the two largest banks in India in public and private
sector.

The present study is an attempt to compare the financial soundness of two

big banks in Indian Banking sector i.e. State Bank of India and ICICI Bank. State
Bank of India (SBI) is the largest bank among the public sector bank and ICICI
bank is the largest private sector bank in India.

 Introduction to Banking Sector

India is not only the world's largest independent democracy, but it is also a
rapidly growing economic powerhouse. No country can have a stable economy
without a sound and efficient banking system. Banks play a critical role in a
country's economic growth. They collect people's unused savings and make them
eligible for investment. They're in the process of granting loans and purchasing
investment securities, new demand deposits are also established. Accepting and
discounting bills of exchange allows for trade both within and outside the country.
Banks also help to improve capital mobility. India's banking system has a long
list of notable accomplishments over the last three decades. It is no longer limited
to the cities, but has spread to even the most remote parts of the world. This is
one of the factors behind India's development. The banking industry is now one

7
of India's most important service industries. The availability of high-quality
services is critical to the economy's success. Banks' attention has turned away
from customer acquisition to customer retention. The introduction of Information
Technology into the banking sector has changed the way people work. The
banking sector's policy has undergone radical transformations, various customer-
oriented products, such as internet banking, are available. Customer’s workload
has been reduced mainly because of ATM providers, telebanking, and electronic
payments. The internet's convenience Banking allows a customer to access and
manage his bank account without having to go to the bank. 'The Customer's
options have been revolutionized by the availability of ATMs and credit/debit
cards.

 Definition of a Bank

A bank is a financial institution and a financial intermediary that accepts deposits

and channels those deposits into lending activities, either directly by loans or
indirectly through capital markets.

Types of Banks:

Banks are classified as Public or Private depending on their ownership.

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  PUBLIC SECTOR BANKS

Public Sector Banks (PSBs) are a major form of bank in India, in which the Indian
government or state governments own a majority stake (i.e. more than 50%). The
shares of these banks are traded on stock exchanges. Public sector banks in India
include State Bank of India, Bank of Baroda, Bank of Maharashtra, Bank of India
and others.

 PRIVATE SECTOR BANKS

Private sector banks are those in which majority of the stake is owned by the
bank's shareholders rather than the government. Private sector banks in India
include RBL Bank, HDFC Bank, ICICI Bank, Yes Bank, and others.

 Indian Banking Sector

The Reserve Bank of India (RBI) claims that India's banking sector is
adequately capitalized and controlled. The country's financial and economic
standards are far superior to those of any other country on the planet. According
to credit, industry, and liquidity risk studies, Indian banks are generally resilient
and have fared well during the global downturn.

9
 Innovative banking models such as transfers and small finance banks have
recently been introduced in the Indian banking industry. The RBI's new initiatives
may go a long way toward assisting the domestic banking industry's restructuring.

 Market Size

The Indian banking system consists of 12 public sector banks, 22 private

sector banks, 46 foreign banks, 56 regional rural banks, 1485 urban cooperative
banks and 96,000 rural cooperative banks in addition to cooperative credit
institutions. As of September 2020, the total number of ATMs in India increased
to 210,049 and is further expected to increase to 407,000 by 2021.

 Road Ahead

Increased infrastructure investment, faster project delivery, and the

continuation of reforms are expected to give the banking sector a boost. All of
these factors point to a strong future for India's banking sector, as rapidly
expanding companies will turn to banks for credit. In addition, technological
advancements have pushed mobile and internet banking to the forefront. The
banking industry is putting a greater focus on delivering better services to
customers and improving their technology infrastructure in order to boost the
overall customer experience and offer banks a competitive advantage.

10
State Bank of India (SBI)

The State Bank of India, popularly known as SBI is one of the leading
banks in India. The State Bank Group, with over 16,000 branches
provides a wide range of banking products through its vast network of
branches in India and overseas, including products aimed at Non-
Resident Indians (NRIs). The headquarter of SBI is at Mumbai. SBI has
14 Local Head Offices and 57 Zonal Offices that are located at
important cities throughout the country. It also has around 130 branches
out of the country. It has a market share among Indian commercial
banks of about 20% in deposits and loans.

The roots of the State Bank of India rest in the first decade of 19th
century, when the Bank of Calcutta later on renamed the Bank of
Bengal, was established on 2 June 1806. The Bank of Bengal was one
of three Presidency banks, the other two being the Bank of Bombay
(incorporated on 15 April 1840) and the Bank of Madras (incorporated
on 1 July 1843). With the result of the royal charters all three Presidency
banks were incorporated as joint stock companies and received the
exclusive right to issue paper currency in 1861 with the Paper Currency
Act. They retained this right till the formation of the Reserve Bank of
India. The Presidency banks amalgamated on 27 January 1921, and
renamed Imperial Bank of India. The Imperial Bank of India remained
a joint stock company.

The State Bank of India was constituted on 1st July 1955, pursuant to
the State Bank of India Act, 1955 (the "SBI Act") for the purpose of
11
creating a state-partnered and state-sponsored bank integrating the
former Imperial Bank of India. In 1959, the State Bank of India
(Subsidiary Banks) Act was passed, enabling the Bank to take over
eight former state associated banks as its subsidiaries.

The State Bank of India's is largest bank, with approximately 9,000

branches in India and 54 international offices. Its Associate Banks have
a domestic network of around 4,600 branches, with strong regional ties.
The Bank also has subsidiaries and joint ventures outside India,
including Europe, the United States, Canada, Mauritius, Nigeria, Nepal,
and Bhutan. The Bank has the largest retail banking customer base in
India.

SUBSIDIARIES OF SBI

State Bank of Bikaner & Jaipur

State Bank of Hyderabad

State Bank of Mysore

State Bank of Patiala

State Bank of Travancore

SBI is that the oldest bank of Republic of India and India’s largest
commercial bank, that may be a government, owned bank was
established in 1806. The bank provides a wide array of banking product
through their effective network not solely in Republic of India however
additionally overseas. The bank has concerning eighteen,266 branches,

12
 together with four,724 branches of its 5 Associate Banks, and is
additionally responsible for fifth part of the loans of Republic of India.
it's concerning 8500 ATMs across the state.

ICICI Bank

This is the second largest non-public sector bank in Asian nation

having 2,552 branches and seven,440 ATMs unfold across the country.
It is among the highest industrial banks of Asian nation providing a
large range of banking services through varied delivery channels.
Besides giving high-end banking facilities like net banking, Tele
Banking, and Mobile Banking, ICICI additionally plays a important
role within the domains of investment banking, venture capital and plus
management, and life and non-life insurance. The bank spreads its
wings in eighteen countries across the planet including Britain, Canada,
Russia, and others.

ICICI Bank is second largest and leading bank of private sector in India.
It’s headquartered is in Mumbai, India. According to Forbes State Bank
of India is the 29th most reputed company in the world. The Bank has
2,533 branches and 6,800 ATMs in India. In 1998 ICICI Bank launched
internet banking operations. The Bank offers a wide range of banking
products and financial services to the corporate and retail customers. It
also provides services in the areas of venture capital investment
banking, asset management and life and non-life insurance. ICICI
Bank's equity shares are listed in India on Bombay Stock Exchange
(BSE) and the National Stock Exchange (NSE) and its American

13
 Depositary Receipts (ADRs) are also listed on the New York Stock
Exchange (NYSE).

SUBSIDIARIES OF ICICI BANK

NATIONAL INTERNATIONAL

ICICI Lombard ICICI Bank UK PLC

ICICI Prudential Life Insurance Company ICICI Bank Canada

Ltd
ICICI Securities Limited ICICI Bank Eurasia
LLC

ICICI Prudential Asset Management

Company Limited
ICICI Venture

ICICI direct.com

ICICI Foundation

ICICI Bank limited is major banking and financial services organization in

India. The bank is the second largest bank in India and the largest private
sector bank in India by market capitalization. They are publicly held
banking company engaged in providing a wide range of banking and
financial services including commercial banking and treasury
operations. The bank and their subsidiaries offer a wide range ofbanking
and financial services including commercial banking, retail banking,
project and corporate finance, working capital finance, insurance,
venture capital and private equity, investment banking,

14
 broking and treasury products and services. They offer through a variety
of delivery channels and through their specialized subsidiaries in the
area of investment banking, life and non-life insurance, venture capital
and assets management.

The bank has a network of 2035 branches and about 5518 ATMs in
India and presence in 18 countries. They have subsidiaries in the United
Kingdom, Russia and Canada, branches in United States, Singapore,
Bahrain, Hong-Kong, Shrilanka, Qatar and Dubai International finance
center and representative offices in United Arab Emirates, China, South
Africa, Bangladesh, Thailand, Malaysia and Indonesia. Our UK
subsidiary has established branches in Belgium and Germany. The bank
equity shares are listed in India on Bombay Stock Exchange and
National stock exchange of India Limited and their American
Depository Receipts (ADRs) are listed on NYSE. The bank is first
Indian banks listed NYSE.

Justification of the Topic

Ratio analysis is an effective way to evaluate the financial results of the

company to gauge performance. It provides clear understanding about
the Profitability, Liquidity and long-term Solvency of the firm. It will
also aid in the comparison of both the banks as well as the subsequent
changes in liquidity, profitability and NPA position over the last years.
Ratio analysis is the finest method to compare the firm’s performance
across the period of time. Hence the researcher has chosen the ratio
analysis for comparing the SBI (largest public sector bank) and ICICI
Bank. (largest private sector bank)
15
3. Review of Literature

 Singh, B. A. and Tandon, P. (2012) Affirmed that banking Sector plays a

vital role in economic development of a country. The banking industry of
Bharat is featured by a large network of bank branches, serving several
types of financial services of the folks. The banking company of Bharat,
popularly called SBI is one amongst the leading bank of public sector in
Bharat. ICICI Bank is second largest and leading bank of personal sector
in Bharat. the current study is conducted to check the money performance
of SBI and ICICI Bank on the idea of ratios like credit deposit, net profit
margin etc. the amount of study taken is from the year 2007-08 to 2011-
12. The study found that SBI is acting well and financially sound than
ICICI Bank however in context of deposits and expenditure ICICI bank
has higher managing efficiency than SBI.

 Kumbirai, M. and Webb, R. (2010) investigates the performance of South

Africa’s business banking sector for the quantity 2005- 2009. cash ratios
are utilized to measure the profit, liquidity, and credit quality performance
of five big South African primarily based business banks. The study found
that overall bank performance increased considerably among the initial two
years of the analysis. A significant modification in trend is detected at the
onset of the global cash crisis in 2007, reaching its peak throughout 2008-
2009. This resulted in falling profit, low liquidity and deteriorating credit
quality among the South African Banking sector.

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 Pai (2006) in his paper entitled “Trends in the Indian Banking Industry:
Analyses of Interregional Trends in Deposits and Credits” reveals that the
performance of banks, as far as deposits and credits are concerned at two
point of time, has been largely similar. It was also observed that private
scheduled commercial banks had shown superior performance. This would
challenge the pre-eminent position of the public sector banks. The regions
studied also reveal that their growths on these parameters, at the two points
in time, have been comparable between themselves.

 Bodla et al. (2006) attempted to study the “Performance of SBI and ICICI
Bank through Camel Model for the Period 2004-05”. They found that
ICICI Bank has outperformed SBI in terms earning quality, the ratio of
operating profit to average working funds, Net Profit to Average assets,
and so on. The same is true regarding assets quality, earning quality, and
management quality ratios. The liquidity position of both the banks is
sound and does not differ significantly.

 Samad (2007) in his paper entitled “Comparative Analysis of Domestic and

Foreign Bank Operations in Bangladesh” examines the operation of foreign
and domestic banks in the process of industrialization and economic
development of Bangladesh. The comparison of the financial ratios of
foreign and domestic banks indicates that there are significant differences
in operation between them.

17
 Sinha et al. (2009) in their paper entitled “Bank Ownership and Deposit
Mobilization: A Non- parametric Approach” compare the performance of
40 Indian commercial banks using Window Analysis, considering deposit
mobilizations as the output indicator. The results obtained from the study
indicate that mean technical efficiency of the in-samples banks exhibited a
declining trend for the period. The decline in mean technical efficiency was
due to a greater divergence in performance compared to the frontier.
Among the in-samples banks, the private sector banks performed better
than the public sector banks.

 Shabana (2010) in her paper entitled “Operational Efficiency of Public

Sector Banks in India a Non-Parametric Model” focuses on the operational
efficiency of public sector banks in India using a non-parametric model,
which measures the efficiency as a ratio of output index to an index of input
used. The findings reveal that, out of 27 public sector banks in India, only
nine banks had achieved high level of efficiency in its operations, with
Oriental Bank of Commerce at the top.

 Verma et al. (2011) in their paper entitled “Performance of Scheduled

commercial banks in India: An application of DEA” analyses the efficiency
of 88 SCBs with the data set ranging from the year 1998-99 to 2007-08.
The results indicate that the public sector and foreign banks needed to take
steps to reduce the expenses and improve the output at the given input level
because they had failed to acquire full efficiency score in six and five years
respectively, out of the ten years under study.

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 4. Research Methodology

In the present study, an attempt has been made to measure, evaluate and
compare the financial performance of SBI and ICICI Bank which one related to
the public sector and private sector respectively. The study is based on secondary
data that has been collected from annual reports of the respective banks,
magazines, journals, documents and other published information. The study
covers the period of 5 years i.e. from year 2007-08 to year 2011-12. Ratio
Analysis was applied to analyses and compare the trends in banking business and
financial performance. Mean and Compound Growth Rate (CGR) have also been
deployed to analyses the trends in banking business profitability.

Research Design

This research is descriptive and quantitative in nature which is

collected through google forms and online articles related to the
study. is based on the combination. Google forms were circulated
with question with best of our teammates knowledge and creativity
to gather data.in this research paper we also used secondary data
because used in the comparative study of Private sector Banks and
public sector banks is largely secondary in nature.

19
 Descriptive Research Design is used for the study and it is essentially
a fact-finding approach. It aims to explain the characteristics of an
individual or group characteristics and to determine the frequency
with the same things occurs.

Sample Design

Deliberate sampling technique is used for the study. This sampling

method involves purposive or deliberate selection of particular units of
the world for constituting a sample that represents the population.

 Selection of the Sample Units

Banking sector in India is considered one of the fastest growing financial

institutions in the world. Using purposive sample, State Bank of India and ICICI
Bank were selected as the sample units for the study. The sample units selected
were considered one of the successful units in the banking sector.

 Study Period

This study covers a period of five years, i.e., from 2013-14 to 2017-18

 Tools Applied

The data collected were moderated for the study. The major tools applied for the
analysis of the data are ratios, percentages, and t-test.

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 A. Objectives of The Study

 To study the financial performance of SBI and ICICI Bank.

 To understand the efficiency of SBI and ICICI Bank.

 To know and compare the profitability position of State Bank of

India and ICICI Bank.

B. Scope of The Study

i. This study will pave the way to the academic as well as general public
about the overall efficiency at which the largest commercial banks are
serving.

ii. This study will throw light on the different aspects where the State Bank
of India and ICICI Bank excel and how the banks will provide an
opportunity in balancing its activities to achieve the best performance.

21
 C. Limitation of The Study

Due to constraints of time and resources, the study is likely to suffer from
certain limitations. Some of these are mentioned here under so that the
findings of the study may be understood in a proper perspective.

The limitations of the study are:

 The study is based on the secondary data and the limitation of using
secondary data may affect the results.

 The secondary data was taken from the annual reports of the SBI and
ICICI Bank. It may be possible that the data shown in the annual reports
may be window dressed which does not show the actual position of the
banks.

D. Sources of Data Collection

Data Collection Method

The secondary has been collected from Industry journals, News

Articles, Bank websites and Research papers. This data used to analyses
the balance sheet fig of the bank.

22
 Google from collected data through various channels of social
media platforms namely

i. WhatsApp

ii. Facebook

iii. Instagram

i. Primary Data

Through the data we’ve collected on who will people choose in

various conditions following are the results.

1) Taking out a loan

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Interpretation :

46% of our respondents have chosen SBI, as a bank they would

choose if they need loan. While ICICI scores 17.5% and other public
and private bank scored 17.5% and 19% respectively. SBI has
clearly stepped up in this front and the interest rates might be the
reason as SBI charges 9.60% while ICICI bank charges 10.25%.

2) Online Banking

24
Interpretation :

ICICI is still behind SBI in this front also with a difference of

5.4%. What services customers chooses plays important role
in finance of the industry. The majority of the respondents
however chosen a third party showing none of the banks is as
good as others.

3) Investment

25
Interpretation :

Depositing is the main feature of a bank however banks are

required to maintain LRR which is 0.1%. If a bank has higher
deposits, they can lend more and earn more so SBI with 51.6%
takes the lead on ICICI having only 16.7%.

4) Preference at different conditions

26
 Interpretation :

Again, taking the lead SBI is at 42.1% while ICICI has only
19% customer base while it comes to deposition of their
money and deposition is the major role in a bank therefore we
can say SBI is doing much better than ICICI financially.

5) Choosing a bank

Interpretation :

If you don’t have customer to begin with, you can not exactly
run a company. So, in collecting customers SBI stops at
47.6% and ICICI at 19%.
27
 ii. Secondary Data

Table 1 demonstrates that for the study period, Net Profit Ratio of both SBI
and ICICI bank were fluctuating. The highest Net Profit Ratio of SBI was
11.93% in 2015-16 and for ICICI bank it was 15.56% in 2017-18. Whereas,
the lowest Net Profit Ratio of SBI was 7.65% in 2017-18 and 9.58% for ICICI
bank in 2015-16. The average Net Profit Ratio of SBI is 10.29% and ICICI
bank is 11.64%, which implies that the Net Profit Ratioof ICICI bank is
1.35%, which is more than that of the SBI.

Table 1: Net Profit Ratio

28
Table 2 demonstrates that in the given study period, the Operating Profit
Ratio of both SBI and ICICI bank were fluctuating. The highest Operating
Profit Ratio of SBI in the year 2015- 16 was 19.10% and that of ICICI bank
was 22.31% in 2017- 18. Whereas the lowest Operating Profit Ratio of both
SBI and ICICI bank in the year 2013-14 was 16.56% and 12.66%
respectively.

The average Operating Profit Ratio of SBI is 17.65% and that of ICICI
bank is 15.99%, which implies that the Operating Profit Ratio of SBI is
1.66%, which is more than that of the ICICI bank.

Table 2: Operating Profit Ratio

29
Table 3 indicates that for the learn about period, Return on Net Worth Ratio
of each SBI and ICICI bank had been fluctuating. The absolute best Return
on Net well worth Ratio of SBI used to be 15.74% in the year 2008-09, and
for ICICI bank it used to be 12.61% in 2006-07. Whereas the lowest Return
on Net Worth Ratio of SBI in the 12 months 2010-11 was once 11.34% and
for ICICI bank it was 7.53% in 2008-09. The average Net Worth Ratioof
SBI is 13.83% and that of ICICI bank is 9.23%, which implies that the
average Net Worth Ratio of SBI is 4.60% which is extra than that of the
ICICI bank.

Table 3: Return on Shareholder’s Investment or Net Worth Ratio

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Table 4 illustrates that for the study period, Earnings per Share of both SBI
and ICICI bank have been fluctuating. The very best Earnings per Share of
SBI was once 144.39 in the year 2009-10 and that of ICICI financial
institution was once 44.70 in 2010-11. Whereas, the lowest Earnings per
Share of SBI in the year 2006-07 was 86.30 and that of ICICI financial
institution in the year 2008-09 was once 33.75. The common Earnings per
Share of SBI is 119.40 and ICICI bank is 37.29, which implies that the
average Earnings per Share of SBI is 82.11, which is greater than that of
the ICICI bank.

Table 4: Earnings Per Share [EPS]

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 5. Data Interpretation and Analysis

1. INTEREST INCOME TO TOTAL INCOME: -

Interest Income to Total Income shows the proportionate contribution of

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

(IN PERCENT)
YEAR SBI ICICI

2007-08 83.89 77.61

2008-09 83.40 79.29

2009-10 82.58 77.90

2010-11 84.49 78.51

2011-12 88.12 80.92

MEAN 84.49 78.84

CGR 5.04 4.26

Table 1.1: - Interest Income to Total Income in SBI and ICICI

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 Fig.No.1.1 Interest Income to Total Income in SBI and ICICI

The table 1.1 represents that the ratio of interest income to total income in
SBI and ICICI both is quite stable and volatile over the years. The growth
rate of SBI is 5.04 while that of ICICI is 4.26. Thus, the proportion of interest
income to total income in SBI was higher than that of ICICI, which shows
that people preferred SBI to take loans and advances.

2. OTHER INCOME TO TOTAL INCOME: -

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

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 (IN PERCENT)
YEAR SBI ICICI

2007-08 16.10 22.38

2008-09 16 20.70

2009-10 17 22.09

2010-11 16 21.48

2011-12 11 19.07

MEAN 15.22 21.44

CGR -31.6 -14.7

Table 1.2: - Other Income to Total Income in SBI and ICICI

Fig.No.1.2 Other Income to Total Income in SBI and ICICI

The table 1.2 shows that the ratio of other income to total income was
decreased from 16.10 per cent in 2007-08 to 11.00 per cent in 2011-12 in case of
SBI. However, the share of other income in total income of ICICI was also
decreased from 22.38 per cent in 2007-08 to 19.07 per cent 2011-12. The
table shows that the ratio of other income to total income was relatively higher
in ICICI (21.44%) as compared to SBI (15.22%) during the period of study.

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3. NET PROFIT MARGIN: -

Net Profit Margin reveals the financial results of the business activity and
efficiency of management in operations. The table 1.3 shows the net profit margin
in SBI and ICICI during the Period 2005-06 to 2009-10.

(IN PERCENT)

YEAR SBI ICICI

2007-08 12.64 11.81

2008-09 13.11 11.45

2009-10 10.54 13.64

2010-11 8.55 17.52

2011-12 9.73 17.45

MEAN 10.91 14.37

CGR 23.02 47.7

Table-1.3: -Net Profit Margin in SBI and ICICI

Fig. No.1.3 Net Profit Margin in SBI and ICICI

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The table 1.3 reveals that the ratio of net profits to total income of ICICI was
varied from 11.81 per cent to 17.45 percent whereas in case of SBI it is not stable.
It increased to 13.11 percent from 12.64 percent in 2008-09 then further decreased
to 10.54 percent in 2009-10 and 8.55 percent in 2010-11 and finally increased to
9.73 percent in 2011-12 during the period of 5 years of study. However, the net
profit margin was higher in ICICI (14.37%) as compared to SBI(10.91%) during
the period of study. But it was continuously decreased from 2007-08 to 2011-12
in ICICI. Thus, the ICICI has shown comparatively lower operational efficiency
than SBI.

36
 6. Findings

The study provides key findings according to the data analysis and arrives on
some conclusions based on the findings.

 Interest Income to Total Income ratio has drastically reduced in both the
banks.

 Other Income to Total Income ratio has increased in both the banks. The
ICICI bank has a higher increase when compared to SBI which must be
immediately taken into consideration by ICICI.

 The average Net Profit Ratio of SBI is 10.29% and ICICI bank is 11.64%,
which implies that the Net Profit Ratio of ICICI bank is 1.35%, which is
more than that of the SBI.

 The average Operating Profit Ratio of SBI is 17.65% and that of ICICI
bank is 15.99%, which implies that the Operating Profit Ratio of SBI is
1.66%, which is more than that of the ICICI bank.

 The average Net worth Ratio of SBI is 13.83% and that of ICICI bank is
9.23%, which implies that the average Net Worth Ratio of SBI is 4.60%
which is more than that of the ICICI bank.

 The average Earnings per Share of SBI is 119.40 and ICICI bank is 37.29,
which implies that the average Earnings per Share of SBI is 82.11, which
is more than that of the ICICI bank.
37
 7. Conclusion

According to the analysis, both the banks are maintaining the required standards
and running profitably. The researchers focused at the financial performance of
India's banking sector over the last five years, from 2006 to2011. State Bank of
India (SBI) and ICICI Bank are the two largest banks in India in public and private
sectors respectively. To compare the financial performance of the banks,various
ratios have been used to measure the banks’ profit ability, solvency position, and
management efficiency. According to the analysis, each the banks are retaining
the required requirements and going for walks profitably. The assessment of the
performance of SBI and ICICI Bank shows that are significant distinction between
overall performance of SBI and ICICI Bank in terms of Deposits, Advances,
Investments, Net Profit, and Total Assets. It is inferred that SBI have an extensive
operation than ICICI Bank. This find out about will assist enhance further lookup
on the difficulty by researchers and academicians

This study will help enhance further research on the subject by researchers and
academicians.

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 8. Recommendations

After analyzing the above data, the following suggestion are given to improve the
financial performance of the company.

 As the operating cost of both the banks has led to the reduced profits, they
have to be reduced in order to increase the profits.

 The NPAs should be controlled in case of SBI to increase the profits and
realize the actual returns of the loans it has lent.

 ICICI should cut down the charges it has imposed on customers so as to

attract a greater number of customers thereby increasing the operations.

 Interest Expended to Interest Earned ratio of ICICI Bank is less satisfactory

when compared to SBI. It is suggested that the ICICI Bank may take some
steps to increase the interest earning capacity of the bank.

 As the Advances of ICICI Bank is low and it is suggested that the bank
should concentrate on Advances by providing the loans with affordable
interest rate.

39
 9. Bibliography

Websites: -

https://corporatefinanceinstitute.com/resources/knowledge/finance/financial-ratios/

https://www.investopedia.com/ask/answers/040715/what-do-efficiency-ratios-measure.asp

http://www.differencebetween.net/business/difference-between-gross-npa-and-net-npa/

https://www.wallstreetmojo.com/fixed-asset-turnover-ratio-formula/

Textbooks: -

Gupta S.P. & Gupta K.L., Management & cost accounting, Agra, Sahitya
Bhawan Publications, 2020

40
 PART C

EXPERIENTIAL LEARNING

1. BANK ACCOUNT

A bank account is a financial account maintained by a bank or other

financial institution in which the financial transactions between the bank and a
customer are recorded. Each financial institution sets the terms and conditions for
each type of account it offers, which are classified in commonly understood types,
such as deposit accounts, credit card accounts, current accounts, loan accounts or
many other types of account. A customer may have more than one account. Once
an account is opened, funds entrusted by the customer to the financial institution
on deposit are recorded in the account designated by the customer. Funds can be
withdrawn from loan loaders.

The financial transactions which have occurred on a bank account within a

given period of time are reported to the customer on a bank statement, and the
balance of the accounts of a customer at any point in time is their financial
position with the institution.

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2. TYPES OF BANK ACCOUNT

Savings A/c:

A savings account is an interest-bearing deposit account held at a bank or

other financial institution. Though these accounts typically pay a modest interest
rate, their safety and reliability make them a great option for parking cash you
want available for short-term needs.

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43
Current A/c:

Current bank account is opened by businessmen who have a higher number

of regular transactions with the bank. It includes deposits, withdrawals, and
contra transactions. It is also known as Demand Deposit Account In current
account, amount can be deposited and withdrawn at any time without giving any
notice.

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45
3. CHEQUE

Cheque is a paper used to give money from one person or business to

another person or business. To the person getting the cheque, it is a paper that
allows them to go to a bank and get money. A cheque that is written to a person

but does not have the amount of money written is a blank cheque.

 TYPES OF CHEQUE

Blank Cheque:

A blank cheque is the one in which the payment is made to the person
blank the cheque. These cheques are transferable by delivery, that is, if you are
carrying the cheque to the bank, you can be issued the payment to.

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Crossed Cheque:

A crossed cheque is a cheque that is payable only through a collecting

banker and not directly at the counter of the bank. Two parallel transverse
lines, with or without any word, are generally drawn on the top left-hand corner
of the cheque.

a. A/c Payee Cheque:

An account payee cheque is a type of cheque which can be deposited in

the account of the payee (the party to whom the final payment is supposed to be
made and whose name is mentioned on the cheque). It cannot be endorsed to
anyone else.

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 b. Cancelled Cheque:

A cancelled check is a check that has been paid or cleared by

the bank it was drawn on after it has been deposited or cashed. The
check is "cancelled" after it's been used or paid so that the check cannot
be used again.

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4. DEPOSIT SLIP:

A deposit slip is a form supplied by a bank for a depositor to fill

out, designed to document in categories the items included in the
deposit transaction.

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5. RTGS / NEFT FORM

The full form of RTGS is Real Time Gross Settlement. The

same NEFT is a service through which we can transfer money from our bank account
to another bank account electronically.

RTGS systems work on an individual order basis, meaning that

transactions are settled at the same time when they take place and so there is no
waiting period.

An RTGS system is generally used for large-value interbank funds

transfers operated and organized by a country’s Central Bank. These transfers
often require immediate and complete clearing. As mentioned above, once
transactions are settled, they cannot be reversed.

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