JAGADGURU DATTATRAY COLLEGE OF TECHNOLOGY

JDCT
SYNOPSIS OF MAJOR RESEARCH PROJECT ON The Environmental Factors Responsible For Banks Performance Between SBI And ICICI :A Comparative Analysis In Indore Region

SUBMITTED IN PARTIAL FULFILMENT FOR THE REQUIREMENT OF THE AWARD OF DEGREE OF MASTER OF BUSINESS ADMINISTRATION (MBA)
TO

Devi Ahiliya University, Indore

Guided By
Lect. Mr. Satish Ratre

Submitted By
Shweta Baghel [MBA-II YEAR]

INDEX

Title Introduction Review of Literature Rationale of the study Research Methodology o Objectives o Hypothesis o Sample Design o Data Collection Primary Data Secondary Data Data Analysis Reference

TITLE

The Environmental Factors Responsible For Banks Performance Between SBI And ICICI: A Comparative Analysis In Indore Region INTRODUCTION
Banking Industry which is basically my concern industry around which my project has to be revolved is really a very complex industry. And to work for this was really a complex and hectic task and few times I felt so frustrated that I thought to left the project and go for any new industry and new project. Challenges which I faced while doing this project were followingBanking sector was quite similar in offering and products and because of that it was very difficult to discriminate between our product and products of the competitors. Target customers and respondents were too busy persons that to get their time and view for specific questions was very difficult. Sensitivity of the industry was also a very frequent factor which was very important to measure correctly. Area covered for the project while doing job also was very large and it was very difficult to correlate two different customers/respondents views in a one. Every financial customer has his/her own need and according to the requirements of the customer product customization was not possible.

Environment Factors:
Environmental factors or constraints wrote Barry M. Richman and Melvyn Copen are largely if not totally, external and beyond the control of individual industrial enterprises and their managements .These are essentially given s within which firms and their management must operate in a specific country and they vary ,often greatly ,country to country. The environmental factors are included is global, technological, economic, political, social-cultural, and natural environment etc.

So above challenges some time forced me to leave the project but any how I did my project in all circumstances. Basically in this project I analyzed thatNationalized Banks Nationalized banks dominate the banking system in India. The history of nationalized banks in India dates back to mid-20th century, when Imperial Bank of India was nationalized (under the SBI Act of 1955) and re-christened as State Bank of India (SBI) in July 1955. Private Banks in India Initially all the banks in India were private banks, which were founded in the pre-independence era to cater to the banking needs of the people. In 1921, three major banks i.e. Banks of Bengal, Bank of Bombay, and Bank of Madras, merged to form Imperial Bank of India

COMPANY PROFILE
State Bank of India The State Bank of India, the countrys oldest Bank and a premier in terms of balance sheet size, number of branches, 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. The bank is entering into many new businesses with strategic tie ups Pension Funds, General Insurance, Custodial Services, Private Equity, Mobile Banking, Point of Sale Merchant Acquisition, Advisory Services, structured products etc each one of these initiatives having a huge potential for growth. The Bank is forging ahead with cutting edge technology and innovative new banking models, to expand its Rural Banking base, looking at the vast untapped potential in the hinterland and proposes to cover 100,000 villages in the next two years. It is also focusing at the top end of the market, on whole sale banking capabilities to provide Indias growing mid / large Corporate with a complete array of products and services. It is consolidating its global treasury operations and entering into structured products and derivative instruments. Today, the Bank is the largest provider of infrastructure debt and the largest arranger of external commercial borrowings in the country. It is the only Indian bank to feature in the Fortune 500 list. SBI have 26500 branches in India and SBI includes 99345 office in India. ICICI Bank ICICI Bank is Indias second-largest bank and the largest private bank in the country, having more than US$50 billion in assets. The Bank has a network of 2,044 branches and about 5,546 ATMs in India and presence in 18 countries. ICICI Bank provides a wide range of banking products and financial services investment banking, life and non-life insurance, venture capital and asset management to corporate and retail customers through a variety of delivery channels and specialized subsidiaries and affiliates. Customers of all the groups under the ICICI umbrella are served through roughly 614 branches and

global services provided through 14 international offices. ICICI has incubated Financial Information Network & Operations Pvt. Ltd. (FINO).

LITERATURE REVIEW
1. Chidambram R. M and Alamelu (1994) in their study entitled, Profitability in Banks, a matter of survival, pointed out the problem of declining profit margins in the Indian Public Sector Banks as compared to their private sector counterparts. It was observed that in spite of similar social obligations; almost all the private sector banks have been registering both high profits and high growth rate with respect to deposits, advances and reserves as compared to the public sector banks. Regional orientation, better customer services, proper monitoring of advances and appropriate marketing strategies are the secrets behind the success of public of the private sector banks. 2. Das A.( 1997) in his paper on Technical allocation and Scale Efficiency of the Public Sector Banks in India The study found that there is decline in overall efficiency due to fall in technical efficiency which was not offset by an improvement in allocative efficiency. However, it is pointed out that the deterioration in technical efficiency was mainly on account of few nationalized banks. 3. Chandan, C.L. and Rajput, P.K. (2002) measured the performance of bank on basis on the basis of profitability analysis. 4. Sangami M. (2002) in his study has suggested that the position of operating cost can be improved with the introduction of high level technology as well as by improvement the per employee productivity. 5. Qamar, F (2003) in his paper examined commercial banks in terms of endowment factors, risk factors, revenue diversification, profitability and efficiency parameters. 6. Chawla, A.S.(2006) made an attempt to analyze the emerging trends in profits and profitability of four banks, two each from public sector and private sector banks.

RATIONALE
This research study will help the banking industry, both the public and private sector, for the improvement or change in the business model and financial performance specially the State Bank of India and ICICI Bank. The study will also help the customer for the choice of bank for availing services.

RESEARCH METHODOLOGY
o OBJECTIVES
1. To analyze the economic model of State Bank of India. 2. To analyze the economic model of ICICI bank. 3. To analyze the financial performance of State Bank of India. 4. To analyses the financial performance of ICICI bank.

HYPOTHESIS
Null hypothesis

Ho As a result there will be no difference in the environmental factors

Alternative hypothesis

Ha As a result there will be a significant difference in the environmental factors.

SAMPLE DESIGN

Sample Unit: Employees and customers. Sample Size: This study involves 100 respondents. (employee :customer::2:3) Sampling Type: The sample size would be taken by non-random convenience sampling techniques.

DATA COLLECTION
Data will be collected both from primary as well as secondary sources as described below: Approach constitutes of both I.Primary data. II.Secondary data.

PRIMARY DATA:-

The primary data are generally information generated by the researcher for the purpose of the object immediately in hand. The primary data is collected from Survey Method (Questionnaire) Observation

SECONDARY DATA:

It refers to those data that was already being collected by and analyzed by someone else. This data is collected from Journal Reports Magazines. Newspapers and books Website :

DATA ANALYSIS:
Statistical Tools- Correlation, Graphical Analysis Financial Tools- Ratio Analysis
The data so collected will be analyzed through the application of statistical techniques, such as bar graphs and pie charts. Data formulation: Data Analysis tools: SPSS CHI SQUARE TEST

REFERENCES Dr.N.Bharathi (2010)Profitability Performance of New Private Sector Banks - An Empirical Study/ Indian Journal of Finance- Archives: Volume 4 Number 3 March 2010 Jyoti Saluja & Dr.Rajinder Kaur (2009). Profitability Performance of Public Sector Banks In India/ Indian Journal of Finance -Volume 4 Number 4 April, 2010 Prakash Tiwari & Hemraj Verma (2009). A Fundamental Analysis of Public Sector Banks in India /Indian Journal of Finance- Archives: Volume 3 Number 3 March 2009 Dr.M.Selvakumar & P.G.Kathiravan (2009). A Study of Profitability Performance of Public Sector Banks in India/ Indian Journal of Finance-Archives: Volume3Number9 September 2009

Webliography

http://www.icicibank.com/aboutus/about-us.html http://www.statebankofindia.com/user.htm
http://www.managementstudyguide.com/humanmanagement. htmhttp://www.dop.wa.gov/strategichr/HRMPerformanceAccountability/Pages/1.1Overview.aspx **