TA02 Srushti Bachare

PROJECT REPORT ON
COMPARATIVE STUDY OF WORKING CAPITAL

MANAGEMENT ON SBI BANK AND ICICI BANK
A PROJECT SUBMITTED TO
UNIVERSITY OF MUMBAI FOR PARTIAL COMPLETION OF
THE DEGREE OF BACHELOR OF ACCOUNTING AND

FINANCE
UNDER THE FACULTY OF COMMERCE
BY
SRUSHTI SANJAY BACHARE
UNDER THE GUIDANCE OF
MONIKA CHANDIWALA
BAL BHARATI’S M J PANCHOLIA COLLAGE OF COMMERCE
SWAMI VIVEKANAND MARG,
KANDIVALI WEST,
MUMBAI- 400067.
ACADEMIC YEAR: 2022-2023

PROJECT REPORT ON
COMPARATIVE STUDY OF WORKING CAPITAL

MANAGEMENT ON SBI BANK AND ICICI BANK
A PROJECT SUBMITTED TO
UNIVERSITY OF MUMBAI FOR PARTIAL COMPLETION OF
THE DEGREE OF BACHELOR OF ACCOUNTING AND

FINANCE
UNDER THE FACULTY OF COMMERCE
BY
SRUSHTI SANJAY BACHARE
UNDER THE GUIDANCE OF
MONIKA CHANDIWALA
BAL BHARATI’S M J PANCHOLIA COLLAGE OF COMMERCE
SWAMI VIVEKANAND MARG,
KANDIVALI WEST,
MUMBAI- 400067.
ACADEMIC YEAR: 2022-2023

DECLARATION
I the undersigned Srushti Sanjay Bachare here by, declare that the
work embodied in this project
work titled “COMPARATIVE STUDY OF WORKING CAPITAL

MANAGEMENT ON SBI BANK AND ICICI BANK” forms my own
contribution to the research work carried out under the guidance of Prof.
Monika Chandiwala is a result of my own research work and has not
been previously submitted to any other University for any other Degree/
Diploma to this or any other University.
Wherever reference has been made to previous works of others, it has

been clearly indicated as such and included in the bibliography. I, here by
further declare that all information of this document has been obtained
and presented in accordance with academic rules and ethical conduct.
SRUSHTI BACHARE
Certificate by
MONIKA CHANDIWALA
ACKNOWLEDGMENT
I am grateful to have the opportunity to express my heartfelt appreciation to all those

who have contributed to the successful completion of my project.
Firstly, I would like to extend my sincere thanks to the principal of Bal Bharti's M J
Pancholia College of Commerce, PROF. AASHISH A. VAKILNA, for providing
me with a conducive learning environment that has been instrumental in enhancing
my academic and personal growth.
I would also like to express my gratitude to the vice-principal, VICE PRINCIPAL

MONIKA CHANDIWALA for her constant encouragement and support, which has
played a significant role in my academic success.
Furthermore, I would like to acknowledge the contribution of my project guide, VICE

PRINCIPAL MONIKA CHANDIWALA , for her invaluable guidance, timely
feedback, and unwavering support throughout the project. Her expertise and insights
have been indispensable in shaping my understanding of the subject matter. And also
thanks PROF . AARTI UDESHI for supporting .
Last but not least, I would like to extend my gratitude to all the faculty members of
the department who have enriched my learning experience and provided me with the
necessary tools to excel in my academic pursuits.
Once again, thank you to all those who have contributed to the successful completion
of my project.
I would also like to express my appreciation to the administrative staff and support
staff of the college for their tireless efforts in ensuring a smooth learning experience.
Their hard work behind the scenes has not gone unnoticed and is deeply appreciated.
Finally, I would like to acknowledge my fellow classmates and peers for their
camaraderie and support. Our collective effort and collaboration have helped to create
a positive learning environment that has enabled us to achieve academic excellence.
In conclusion, I am deeply grateful for all the support, guidance, and encouragement
that I have received throughout my academic journey. It has been a privilege to be a
part of Bal Bharti's M J Pancholia College of Commerce, and I will cherish the
memories and lessons learned for years to come.
TABLE OF CONTENTS
CHAPTER SR.NO PARTICULAR PG.NO.
ABSTRACT 1
1 INRODUCTION 2 TO 8
1.1 WHAT IS WORKING CAPITAL
1.2 INTRODUCTION OF WORKING CAPITAL
1.3 IMPORTANCE OF WORKING CAPITAL
1.4 AN OVERVIEW OF THE INDIAN BANKING

SECTOR
1.5 PROFILE OF STATE BANK OF INDIA
1.6 PROFILE OF ICICI BANK
2 RESEARCH AND METHODOLOGY 9TO 12
2.1 OBJECTIVES OF METHODOLOGY
2.2 RESEARCH HYPOTHESIS
2.3 SCOPE OF STUDY
2.4 OBJECTIVES OF RESEARCH
2.5 RESEARCH DESIGN
2.6 TYPES OF RESEARCH DESIGN

2.7 LIMITATION OF STUDY
3 OVERVIEW OF WORKING CAPITAL 13TO 18
3.1 WORKING CAPITAL DEFINATION
3.2 WORKING CAPITAL MANAGEMENT

DECONSTRUCTED
3.3 AN OVERVIEW OF THE INDIAN BANKING
SECTOR
3.4 HISTORICAL PERSPECTIVE
4 STATE BANK OF INDIA 19TO 35
4.1 HISTORY
4.2 SIGNIFICANCE OF STUDY
4.3 ORGANIZATIONAL STRUCTURE
4.4 PRODUCT AND SERVICES
4.5 DIFFERENT SERVICES
4.6 THE PRSENT SITUATION OF BANK
4.7 ECONOMIC OVERVIEW
4.8 BANK PERFORMANCE
4.9 DEPOSITE
4.10 CREDIT
4.11 INVESTMENT
4.12 PROFITABILITY
4.13 STUDY ON WORKING CAPITAL

MANAGEMENT IN SBI
4.14 SUBSIDIARIES
5 INDUSTRIAL CREDIT AND 36 TO 50

INVESTMENT CORPRATION OF INDIA
5.1 HISTORY
5.2 ABOUT THIS REPORT
5.3 REPORTING BOUNDARY
5.4 REPORTING PERIODS
5.5 THE PRESENT SITUATION OF BANK
5.6 ADVANTAGE
5.7 DISADAVANTAGE
5.8 WORKING CAPITAL FINANCE
5.9 FACILITIES FROM ICICI BANK MANAGE

YOUR WORKING CAPITAL
5.10 WHY ICICI WORKING CAPITAL IS RIGHT
CHOICE FOR YOU
5.11 TOTAL ASSET OF ICICI BANK
6 COMPARTIVE STUDY ON SBI AND ICICI 51 TO 54

BANK
6.1 ADVANTAGES OF ICICI OVER SBI
6.2 ADVANTAGES OF SBI OVER ICICI

7 LITERATURE REVIEW 55 TO 68
8 DATA ANALYSIS OF INTERPRETATION 69 TO 87
9 9.1 CONCLUSION 88 TO 93
9.2 FINDING
9.3 SUGGESTIONS
9.4 RECOMMNENDATION
BIBLIOGRAPHY 94 TO 95
APPENDIX 96 TO
101
PLAGIARISM 102
TABLE OF FIGURE

1 1.1 SATE BANK OF INDIA 6
1.2 ICICI BANK 7
4 4.1 HISTORY OF SBI BANK 20
4.2 ORGANIZATIONAL STRUCTURE 22
4.3 STATE BANK BHUVAN , NARIMAN 26
POINT, MUMBAI
5 5.1 HEADQUARTER IN BANDRA KURLA 42
COMPLEX , MUMBAI
7 CORPORATION BANK 68
8 8.1 GENDER 69
8.2 QUALIFICATION 70
8.3 OCCUPATION 71
8.4 WHAT IS YOUR CURRENT MONTHLY 72
INCOME ?
8.5 WORKING CAPITAL FOR THE BANK IS 73
CALCULATE
8.6 WORKING CAPITAL MANAGEMENT 74
PLAY IMPORTANT ROLE IN INCREASE
8.7 WORKING CAPITAL MANAGEMENT BE 75
OPTIMISED BY
8.8 IN SBI AND ICICI BANK PROPORTION 76
OF WORKING CAPITAL COMPONENTS
AFFECT THE EFFICIENCY OF WORKING
CAPITAL
8.9 WHICH WORKING CAPITAL IS POOR ? 77
8.10 WHICH BANK YOU ARE INTERESTED 78
TO INVEST IN YOUR MONEY
8.11 HAVE YOU EXPERIENCED WORKING 79
CAPITAL SHORTAGE ?
8.12 WORKING CAPITAL FINANCE IS 80
PROVIDED AGAINST
8.13 FOR WORKING CAPITAL ASSESSMENT 81
DOCUMENTS PAPER REQUIRED ARE
8.14 POOR WORKING CAPITAL 82
MANAGEMENT CAN BE LEAD TO
8.15 WHICH BANK DO YOU THINK GOOD 83
WORKING CAPITAL ?
8.16 CASH POSITION AND BILL 84
RECEIVABLE DECIDE THE LIQUIDITY
OF FIRM
8.17 WHAT DO YOU DO WITH DEBENTURE 85
INTEREST ?
8.18 RATE YOUR WORKING CAPITALISM 86
MANAGEMENT IN SBI BANK OUT OF 5
MANAGEMENT IN ICICI BANK OUT OF
5
LIST OF TABLE
4 4.1 SBI INFORMATION 27
4.2 NET PROFIT FOR FY 2020,2021,2022 28
5 5.1 ICICI BANK INFORMATION 43
5.2 ICICI ANNUAL TOTAL CURRENT ASSET 49
6 6.1 COMPARATIVE BETWEEN SBI AND ICICI BANK 53
8 8.1 GENDER 69
8.2 QUALIFICATION 70
8.3 OCCUPATION 71
8.4 WHAT IS YOUR CURRENT MONTHLY INCOME ? 72
8.5 WORKING CAPITAL FOR THE BANK IS 73

CALCULATE
8.6 WORKING CAPITAL MANAGEMENT PLAY 74
IMPORTANT ROLE IN INCREASE
8.7 WORKING CAPITAL MANAGEMENT BE 75
OPTIMISED BY
8.8 IN SBI AND ICICI BANK PROPORTION OF 76
WORKING CAPITAL COMPONENTS AFFECT THE
EFFICIENCY OF WORKING CAPITAL
8.9 WHICH WORKING CAPITAL IS POOR ? 77
8.10 WHICH BANK YOU ARE INTERESTED TO INVEST 78

IN YOUR MONEY
8.11 HAVE YOU EXPERIENCED WORKING CAPITAL 79
SHORTAGE ?
8.12 WORKING CAPITAL FINANCE IS PROVIDED 80
AGAINST
8.13 FOR WORKING CAPITAL ASSESSMENT 81
DOCUMENTS PAPER REQUIRED ARE
8.14 POOR WORKING CAPITAL MANAGEMENT CAN 82
BE LEAD TO
8.15 WHICH BANK DO YOU THINK GOOD WORKING 83
CAPITAL ?
8.16 CASH POSITION AND BILL RECEIVABLE DECIDE 84
THE LIQUIDITY OF FIRM
8.17 WHAT DO YOU DO WITH DEBENTURE 85
INTEREST ?
MANAGEMENT IN SBI BANK OUT OF 5
MANAGEMENT IN ICICI BANK OUT OF 5
ABSTRACT
Working capital is considered to be life-giving force to an economic entity and

managing working capital one of the most important functions of corporate
management. Working capital management (WCM) is the management of short-term
financing requirements of a firm which includes maintaining optimum balance of
working capital components -receivables, inventory and payables - and using the cash
efficiently for day-to-day operations. This study may enlighten the different ways and
techniques of working capital management to develop the sound financial.
Working Capital management is one of the core areas of managing the business. This
paper will make to study the impact of changes in working capital on the profitability
of Indian Banking Sector. The period of study entails a period of four years from 2016-
2020. To make this study independent as well as dependent variables have been used.
The variables used in the study are Non-Performing Asset (NPA) and Return on Assets
(ROA). Current Ratio, Profitability Ratios and Debt to Liability Ratio are used as
control variables. The analysis is done for two major sector banks of India i.e. The State
Bank of India and ICICI Bank. The variables are based on data for four years viz. 2016-
2020 for these banks. The research method used is correlation analysis and ratio
analysis. The result shows that NPA and ROA have a negative relationship. Also Debt
ratio has a positive relation with Profitability ratios to an extent. Banking sector is a
core sector with direct impact on the economic health of the country. The aim of the
study is to give recommendations that will help in managing this key sector in a better
way. This research also paves way for similar research which will help the sector go
forward.
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CAPTER 1:- INTRODUCTION
1.1 WHAT IS WORKING CAPITAL MANAGEMENT?
Working capital management ensures the best utilisation of a business's current assets
and liabilities for the company's effective operation. The main aim of managing
working capital is to monitor a company's assets and liabilities to maintain adequate
cash flow and meet short-term business goals.
1.2 INTRODUCTION TO WORKING CAPITAL
In a perfect world, there would be no necessity for current assets and liabilities because
there would be no uncertainty, no transaction cost, information search costs, or
production and technology constraints. The unit cost of production would not vary with
the quantity produced. Borrowing and lending rates shall be same. Capital, labour, and
product market shall be perfectly competitive and would reflect all available
information, thus in such an environment, there would be no advantage for investing in
short term assets.
However the world we live is not perfect. It is characterized by considerable amount of

uncertainty regarding the demand, Market price, quality and availability of own
products and those of suppliers. There are transaction costs for purchasing or selling
goods or securities. Information is costly to obtain and is not equally distributed. There
are spreads between the borrowings and lending rates for investments and financings
of equal risks .Similarly each organization is faced with its own limits on the production
capacity and technologies it can employ there are fixed as well as variable costs
associated with production goods. In other words, the markets in which real firm
operated are not perfectly competitive.
These real world circumstance introduce problem`s which require the necessity of
maintaining working capital. For example, an organization may be faced with an
uncertainty regarding availability of sufficient quantity of crucial imputes in future at
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reasonable price. This may necessitate the holding of inventory, current assets.
Similarly an organization may be faced with an uncertainty regarding the level of its
future cash flows and insufficient amount of cash may incur substantial costs. This may
necessitate the holding of reserve of short term marketable securities, again a short term
capital assets. Incorporate financial management, the term working capital management
(net) represents the excess of current assets over current liabilities.
In simple words working capital is the excess of current Assets overcurrent Liabilities.
Working capital has ordinarily been defined as the excess of current assets over current
liabilities. Working capital is heart of the business I fit is weak business cannot proper
and survives. It is therefore said the fate of large scale investment in fixed assets is often
determined by a relatively small amount of current assets. As the working capital is
important to lifeline of company. If this lifeline deteriorates so that the company ability
to fund operation, re-invest do meet capital requirements and payment .Understanding
company`s cash flow health is essential to making investment decision. A good way to
judge a company`s cash flow prospects is to look at its working capital management.
The company must have adequate working capital as much as needed by the company.
It should neither be excessive or nor inadequate. Excessive working capital cuisses for
idle funds lying with the firm without earning any profit, where as inadequate working
capital shows the company doesn’ t have sufficient funds for financing its daily needs
working capital management involves study of the relationship between firm`s current
assets and current liabilities. The goal of working capital management is to ensure that
a short term debt and upcoming operational expenses. The better a company managers
its working capital, the less the company needs to borrow. Even companies with cash
surpluses need to manage working capital to ensure those surpluses are invested in ways
that will generate suitable return for investor.
1.3 IMPORTANCE OF WORKING CAPITAL MANAGEMENT
A business needs enough cash flow for daily operations such as making payments,
purchasing raw materials or managing unforeseen expenses. Working capital helps
fulfil these requirements and serves as a report card for the company's financial health.
3
Proper working capital management allows a business to operate smoothly and improve
its earnings. It includes appropriately managing inventory, account receivables and
payables to make enough cash available for routine operations. It not only helps
businesses meet their financial obligations but also enhances their earnings. Moreover,
it assists with identifying areas that require attention to maintain profitability and
liquidity.
1.4 AN OVERVIEW OF THE INDIAN BANKING SECTOR
Banking sector is a ladder to other sectors for their improvement and their growth. Thus
a strong bank sector is required for the economic growth of a country. After the reforms
in 1991, banks are growing by leap and bounds. Commercial banks have a comparative
advantage as providers of capital because of their special knowledge of customers and
ability to closely monitor uses of funds on an ongoing basis.
The major participants of the Indian financial system are the commercial banks, the
Financial Institutions (FIs), encompassing Term-Lending Institutions, Investment
Institutions, Specialized Financial Institutions and the State-Level Development Bank,
Non-Bank Financial Companies (NBFCs) and other market intermediaries such as the
stock brokers and money-lenders. The commercial banks and certain variants of NBFCs
are among the oldest of the market participants. The Financial Institutions, on the other
hand, are relatively new entities in the financial market place.
1.5 PROFILE OF STATE BANK OF INDIA
The evolution of State Bank of India can be traced back to the first decade of the 19th
century. It began with the establishment of the Bank of Calcutta in Calcutta, on 2 June
1806. The bank was redesigned as the Bank of Bengal, three years later, on 2 January
1809. It was the first ever joint-stock bank of the British India, established under the
sponsorship of the Government of Bengal. Subsequently, the Bank of Bombay
(established on 15 April 1840) and the Bank of Madras (established on 1 July 1843)
followed the Bank of Bengal. These three banks dominated the modern banking
scenario in India, until when they were amalgamated to form the Imperial Bank of
India, on 27January 1921.An important turning point in the history of State Bank of
4
India is the launch of the first Five Year Plan of independent India, in 1951. The Plan
aimed at serving the Indian economy in general and the rural sector of the country, in
particular. Until the Plan, the commercial banks of the country, including the Imperial
Bank of India, confined their services to the urban sector. Moreover, they were not
equipped to respond to the growing needs of the economic revival taking shape in the
rural areas of the country. Therefore, in order to serve the economy as a whole and rural
sector in particular, the All India Rural Credit Survey Committee recommended the
formation of a state-partnered and state-sponsored bank .The All India Rural Credit
Survey Committee proposed the takeover of the Imperial Bank of India, and integrating
with it, the former state-owned or state-associate banks. Subsequently, an Act was
passed in the Parliament of India in May 1955. As a result, the State Bank of India (SBI)
was established on1 July 1955. This resulted in making the State Bank of India more
powerful, because as much as a quarter of the resources of the Indian banking system
were controlled directly by the State. Later on, the State Bank of India (Subsidiary
Banks) Act was passed in 1959. The Act enabled the State Bank of India to make the
eight former State-associated banks as its subsidiaries.
The State Bank of India emerged as a pacesetter, with its operations carried out by the
480 offices comprising branches, sub offices and three Local Head Offices, inherited
from the Imperial Bank. Instead of serving as mere repositories of the community's
savings and lending to creditworthy parties, the State Bank of India catered to the needs
of the customers, by banking purposefully. The bank served the heterogeneous financial
needs of the planned economic development.
5
ABOUT LOGO
THE PLACE TO SHARE THE NEWS …….
SHARE THE VIEWS……..
FIG 1.1
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, it indicates complete services towards customers. The logo also denotes a bank
that it has prepare to do anything to go to any length, for customers.
The blue pointer represent the philosophy of the bank that is always looking for growth
and newer, more challenging, more promising direction. The key hoe indicates safety
and security.
1.6 PROFILE OF ICICI BANK
Industrial Credit and Investment Corporation of India (ICICI) Bank Limited is an

Indian multinational banking and financial services company. It has its corporate office
in Mumbai, Maharashtra and was established on 5th January 1994. The banks have
5275 branches and 15,589 ATMs across India. It has a brand presence in 17 countries
worldwide.
6
Its subsidiaries are present in the UK and Canada and its branches in USA, Bahrain,
Singapore, Qatar, Hong Kong, Oman, Dubai International Finance Centre, China and
South Africa. ICICI bank also has representative offices in the United Arab Emirates,
Malaysia, Indonesia and Bangladesh. Its UK subsidiary has branches in Germany and
Belgium. In 1998, ICICI bank launched internet banking services and in 1999 it became
the first Indian company and the first bank to be listed on NYSE. ICICI bank also helped
set up the Credit Information Bureau of India Limited
FIG 1.2
Its working capital financing consists mainly of cash credit facilities and bill
discounting. Under the cash credit facility, a line of credit is provided up to a pre-
established amount based on the borrower's projected level of inventories, receivables
and cash deficits. Up to this pre-established amount, disbursements are made based on
the actual level of inventories and receivables. The facility is generally given for a
period of up to 12 months, with a review after that period. Its cash credit facility is
generally fully secured with full recourse to the borrower. In most cases, ICICI Bank
has a first charge on the borrower's current assets, which normally are inventory and
receivables. Bill discounting involves the financing of short-term trade receivables
through negotiable instruments. These negotiable instruments can then be discounted
with other banks if required, providing us with liquidity.
ICICI Bank provides letter of credit facilities to its customers both for meeting their
working capital needs as well as for capital equipment purchases. Lines of credit for
letters of credit are approved as part of a working capital loan package provided to a
7
borrower. These facilities, like cash credit facilities, are generally given for a period up
to 12 months, with review after that period: ICICI Bank provides guarantees, which can
be drawn down any number of times up to the committed amount of the facility .
ICICI Bank. ICICI Limited began diversifying its operations from project-based
lending to corporate financing at the time of appraisal. In addition, as a part of its
housing finance initiative, ICICI Limited set up ICICI Home Finance Company in 1999
as a wholly-owned subsidiary for provision of housing loans. During implementation,
based on opportunities in the
Market, ICICI Limited merged with ICICI Bank and refocused its operations on retail
and commercial banking. The size of ICICI Bank's housing finance portfolio as of 31
March 2008 was Rs585 billion, of which loans to the relatively lower income group
(loans of less than Rs0.5 million) constituted 16%. The size of ICICI Home Finance
Company's housing portfolio was Rs67 billion as of 31 March 2008: ICICI Home
Finance Company has recently started focusing on large ticket (non-priority sector)
loans and home equity loans.
To un-bundle these risks, a step towards upgrading their risk assessment and risk
management has been undertaken by some banks. An important focus of these efforts
has been the development of new methodologies, and the introduction of more rigorous
practices to measure and manage risk. The rapid growth and increasing complexity of
financial market activity, together with increasing competition, have been important
catalysts to these developments. However, this step has highlighted the challenges
associated with quantifying and ascertaining ask, given the scarcity of historical loan
performance data.
8
CHAPTER 2-RESEARCH METHODOLOGY
2.1 Objectives of the methodology;
1. To analysis the profitability of SBI and ICICI Bank.
2. To analysis the short term financial position of SBI and ICICI Bank.
3. To analysis the long term financial position of SBI and ICICI Bank.
4. To compare the profitability and the performance of SBI and ICICI Bank.
2.2 Research Hypothesis;
Ho-There is no significance difference between the profitability of SBI and ICICI.
Hi there is no significance difference in the long term financial position of SBI and
ICICI
2.3 Scope of Study
The scope of the study is to find the profitability of SBI and ICICI on the duration of
2016 to 2020 and also 2021 and 2022. The profit is Associate in Nursing the absolute
word, whereas, the gain may is a relative thought, though' they're closely connected and
reciprocally mutually beneficial, having distinct roles in business. Gain refers to the
operative efficiency of the enterprise. It's the power of the priority to create profit on
sales, and conjointly to urge sufficient return on the capital utilized It take under
consideration numerous gain ratios like adjusted money Margin, Net Profit Margin,
come back on internet price, and Adjusted come back on internet price. Banking
9
company of Republic of India (SBI) and Industrial Credit and Investment Corporation
of India (ICICI) area unit hand-picked as sample banks for the study as they are high
banks within the domain of public and personal sectors. The banking company of
Republic of India, popularly referred to as SBI is one amongst the leading public sector
bank in Republic of India. This study may be a case methodology of analysis and
comparative analysis in nature. The study is used solely secondary knowledge that was
collected from analysis articles, books connected and thesis works already done on the
subject and significantly from annual reports of SBI and ICICI Bank.
2.4 Objective of research
 PRIMARY OBJECTIVE
The main objective of research is to analyse the consumer awareness of STAT BANK
OF INDIA and ICICI BANK market comparison of the players in the market. To find
out the perception, satisfaction and acceptance level of the STAT BANK OF INDIA
and ICICI BANK in the market.
 SECONDARY OBJECTIVE
The primary target of the market research was to find out preference of people towards
Bank .Studies the facilities provide to the consumer by bank.
2.5 RESEARCH DESIGN
"Research design is the plan, structure and strategy of investigation conceived so as

obtain answer to research to question and to control variance."
10
The definition consists of three important terms - plans, structure and strategy. The plan
is an outline of the research scheme on which the researcher is to work. The structure
or research is a more specific outline or the scheme and the strategy shows how the
research will be carried out, specifying the method to be used in the collection and
analysis of data.
2.6 TYPE OF RESEARCH DESIGN
 DESCRIPTIVE RESEARCH DESIGN
Descriptive studies are under taken in much circumstance. When the researcher is
invested in knowing the characteristics of certain group such as age, sex, educational
level or income, descriptive study may be necessary. Other cases when a descriptive
study could be taken up are when he is interested in knowing the proportion of people
in a given population who have behaved in a particular manner, making projection of
certain thing or determining the relationship between two or more variables. The
objective of such a study is to answer the who, what, when, where and how “of the
subject under investigation.
There is general feeling that descriptive studies are factual and very simple. This is not
necessarily true. Descriptive study can be complex, demanding a high degree of
scientific skill on the part other research.
11
2.7 Limitations of the Study
 The study is confined only to the selected and restricted indicators and the study
is confined only for a period of three years.
 As the analysis is entirely based on secondary data, it has its drawbacks, firms
can cheat and window dress their financial statements.
 Ratio analysis metrics do not necessarily represent future performance of the

company.
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CHAPTER 3:- OVERVIEW OF WORKING CAPITAL
3.1 WORKING CAPITAL DEFINITION:
Working capital management (WC) can be defined in simple words as that part of the
total capital which is required for daily working of business. It is the capital with which
is the business is worked over. According the subbing working capital is the amount of
funds. Necessary to cover the cost of operating the enterprises.
The term working capital is also defined as "Excess of current assets over current
liabilities".
 Gross working capital (GWC):
When the term working capital is used to donate the total current assent it is stated as
gross working capital.
 Net working capital (NWC):
When the term working capital is used to donate the net current assets
 Permanent working capital (PWC):
It is the minimum amount of the current assets which are needs to conduct the business
even during the dullest season of the year. It is represents the current assets which are
required on a continuing basis over the year.
 Temporary working capital (TWC):
It represents the additional assets which are required at different time during the
operating year.
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 .Negative working capital:
It emerges when current liabilities exceed currents assets such a situation is absolutely
theoretical and occurs when a firm is nearing a crisis of some magnitude.
 Working capital management (WCM):
It is the management of short-term financing requirement of a firm. This includes

maintaining optimum balance of working capital components receivable inventory and
payable and using the cash efficiency for day-to-day operations it also defines the
management of current assets and current liabilities to maximize short term liquidity.
The main objective of the working capital management is to maintain an optimal

balance between each of the working capital components. In reality management of
working capital has become one of the most important issues in the organizations where
many financial executive are trying to identify of working capital and the basic deter
optimal level working capital.
3.2 WORKING CAPITAL MANAGEMENT DECONSTRUCTED
Effective working capital management requires coordinating several tasks such as

managing short-term investments, granting credit to customers and collecting on this
credit, managing inventory, and managing payables. Effective working capital
management also requires obtaining reliable cash forecasts and accurate data on
transactions and bank balances.
If a company has insufficient cash to pay for its current expenses, it may have to file
for bankruptcy, undergo restructuring by selling off assets, reorganize, or liquidate.
Conversely, if a company invests excessively in cash and liquid assets, this may be a
poor use of company resources.
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 Accounts Receivable
Accounts receivable are revenues due—what customers and debtors owe to a company
for past sales. A company must collect its receivables in a timely manner so that it can
use those funds to meet its own debts and operational costs. Accounts receivable appear
as assets on a company's balance sheet, but they do not become assets until they are
collected. Days sales outstanding is a metric used by analysts to assess a company's
handling of accounts receivables. The metric reveals the average number of days a
company takes to collect sales revenues.
 Accounts Payable
Accounts payable is the amount that a company must pay out over the short term and
is a key component of working capital management. Companies endeavour to balance
payments with receivables to maintain maximum cash flow. Companies may delay
payments as long as is reasonably possible with the goal of maintaining positive credit
ratings while sustaining good relationships with suppliers and creditors. Ideally, a
company's average time to collect receivables is significantly shorter than its average
time to settle payables.
 Inventory
Inventory is a company's primary asset that it converts into sales revenues. The rate at
which a company sells and replenishes its inventory is a measure of its success.
Investors also consider the inventory turnover rate to be an indication of the strength of
sales and how efficient the company is in its purchasing and manufacturing. Low
inventory means that the company is in danger of losing out on sales, but excessively
high inventory levels could be a sign of wasteful use of working capital
 Working Capital and a Bank's Balance Sheet
Given the nature of a bank's business, calculating working capital is an impractical

endeavour. A bank's balance sheet does not contain inventories or typical accounts
payable. Banks do not produce physical goods. Instead, they borrow and lend funds. A
bank's income comes primarily from the spread between the cost of capital and interest
income it earns by lending out money to the public.
15
Also, banks do not have fixed assets, and they heavily rely on borrowing as their
primary source of capital. This is especially evident from looking at a typical
commercial bank's balance sheet. It has a small number of fixed assets, which primarily
consist of various fixtures and buildings.
Another issue with calculating working capital for banks is a lack of a classification of
assets and liabilities by their due dates. Banks do not organize their balance sheets by
current and noncurrent assets and liabilities, as it is impossible to do so. For instance, a
typical bank's liabilities consist of deposits, which can be withdrawn on demand.
Because it is impossible to determine with certainty when a particular deposit will be
demanded, banks have no means to classify deposits as either current or noncurrent. All
this makes the classification of assets and liabilities by their due dates impractical.
 Net Interest Margin (NIM) and Bank Profitability
Compared to working capital, calculating net interest margin (NIM) is a more

straightforward way of determining a bank's potential for profitability and growth. The
formula for net interest margin is investment returns minus investment expenses
divided by average earning assets.
Banks and investment firms use net interest margin as a metric to show how successful
they are at earning interest on their funds compared to the interest they pay their
depositors. A positive net interest margin indicates a bank is making more money from
its credit products (mortgages and loans, for example) than the interest it pays its
depositor accounts (savings and certificates of deposit, for example). A negative net
interest margin means a bank's investment expenses exceed its investment income, an
indication the firm's management is not investing its funds effectively.
3.3 AN OVERVIEW OF THE INDIAN BANKING SECTOR
Banking sector is a ladder to other sectors for their improvement and their
growth. Thus a strong bank sector is required for the economic growth of
a country. After the reforms in 1991, banks are growing by leap and
bounds. Commercial banks have a comparative advantage as providers of
16
capital because of their special knowledge of customers and ability to
closely monitor uses of funds on an ongoing basis.
The major participants of the Indian financial system are the commercial
banks, the Financial Institutions (FIs), encompassing Term-Lending
Institutions, Investment Institutions, Specialized Financial Institutions and
the State-Level Development Bank, Non-Bank Financial Companies
(NBFCs) and other market intermediaries such as the stock brokers and
money-lenders. The commercial banks and certain variants of NBFCs are
among the oldest of the market participants. The Financial Institutions, on
the other hand, are relatively new entities in the financial market place.
3.4 HISTORICAL PERSPECTIVE
Bank of Hindustan, set up in 1870, was the earliest Indian Bank, Banking in India on
modern lines started with the establishment of three Presidency Banks under Presidency
Bank's Act 1876 i.e. Bank of Calcutta, Bank of Bombay and Bank of Madras. In 1921,
all presidency banks were amalgamated to form the Imperial Bank of India. Imperial
bank carried out limited central banking functions also prior to establishment of RBI.
It engaged in all types of commercial banking business except dealing with the foreign
exchange.
Reserve Bank of India Act was passed in 1934 & Reserve Bank of India (RBI) was
constituted as an apex bank without major government ownership .Banking
Regulations Act was passed in 1949. This regulation brought Reserve Bank of India
under government control. Under the Act, RBI got wide ranging
In simple words working capital is the excess of current Assets over current Liabilities.
Working capital has ordinarily been defined as the excess of current assets over current
liabilities. Working capital is heart of the business if it is weak business cannot proper
and survives. It is therefore said the fate of large scale investment in fixed assets is often
determined by a relatively small amount of current assets. As the working capital is
important to lifeline of company. If this lifeline deteriorates so that the company's
17
ability to fund operation, re-invest do meet capital requirements and payment.
Understanding Company’s cash flow health is essential to making investment decision.
A good way to judge a company's cash flow prospects is to look at its working capital
management. The company must have adequate working capital as much as needed by
the company. It should neither be excessive or nor inadequate. Excessive working
capital cuisses for idle funds lying with the firm without earning any profit, where as
inadequate working capital shows the company doesn't have sufficient funds for
financing its daily needs working capital management involves study of the relationship
between firm's current assets and current liabilities. The goal of working capital
management is to ensure that a short term debt and upcoming operational expenses.
The better a company managers its working capital, the less the company needs to
borrow. Even companies with cash surpluses need to manage working capital to ensure
those surpluses are invested in ways that will generate suitable returns for investors.
18
CHAPTER 4:- STATE BANK OF INDIA
SBI's roots can be traced back to the first bank of India, the bank of Calcutta, which
was founded in 1806. However, SBI's direct predecessor was the Imperial Bank of
India. The state Bank of India arose as a pacesetter, with its tasks completed by the 480
workplaces, and three local head officers, acquired from the imperial bank. Rather than
filling in as simple archives of the local area's reserve funds and loaning to reliable
gatherings, the State Bank of India obliged the requirements of the clients, by banking
deliberately. The bank served the heterogeneous monetary necessities of the arranged
financial turn of events.
4.1 HISTORY
The roots of State Bank of India lie in the first decade of the 19th century when the
Bank of Calcutta later 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). All three Presidency banks were incorporated as joint stock companies
and were the result of royal charters. These three banks received the exclusive right to
issue paper currency till 1861 when, with the Paper Currency Act, the right was taken
over by the Government of India. The Presidency banks amalgamated on 27 January
1921, and the re-organised banking entity took as its name Imperial Bank of India. The
Imperial Bank of India remained a joint-stock company but without Government
participation
19
FIG 4.1
Pursuant to the provisions of the State Bank of India Act of 1955, the Reserve Bank of
India, which is India's central bank, acquired a controlling interest in the Imperial Bank
of India. On 1 July 1955, the Imperial Bank of India became the State Bank of India.
In 2008, the Government of India acquired the Reserve Bank of India's stake in SBI so
as to remove any conflict of interest because the RBI is the country's banking regulatory
authority
SBI has acquired local banks in rescues. The first was the Bank of Bihar (est. 1911),
which SBI acquired in 1969, together with its 28 branches. The next year SBI acquired
National Bank of Lahore (est. 1942), which had 24 branches. Five years later, in 1975,
SBI acquired Krishna ram Balder Bank, which had been established in 1916 in Gwalior
State, under the patronage of Maharaja Madho Rao Scandia. The bank had been the
Dukan Pichadi, a small moneylender, owned by the Maharaja. The new bank's first
manager was Jall N. Broach, a Parsi. In 1985, SBI acquired the Bank of Cochin in
Kerala, which had 120 branches. SBI was the acquirer as its affiliate, the State Bank of
Travancore, already had an extensive network in Kerala.
The first step towards unification occurred on 13 August 2008 when State Bank of
Saurashtra merged with SBI, reducing the number of associate state banks from seven
to six. On 19 June 2009, the SBI board approved the absorption of State Bank of Indore,
in which SBI held 98.3%. (Individuals who held the shares prior to its takeover by the
government held the balance of 1.7 %.)
The acquisition of State Bank of Indore added 470 branches to SBI's existing network
of branches. Also, following the acquisition, SBI's total assets approached ₹10 trillion.
The total assets of SBI and the State Bank of Indore were ₹9,981,190 million as of
20
March 2009. The process of merging of State Bank of Indore was completed by April
2010, and the SBI Indore branches started functioning as SBI branches on 26 August
2010.
On 7 October 2013, Arundhati Bhattacharya became the first woman to be appointed

Chairperson of the bank. Mrs. Bhattacharya received an extension of two years of
service to merge into SBI the five remaining associate
4.2 SIGNIFICANCE OF THE STUDY:
The essence of the study is that the highest valued asset of a banking company is its
working capital which constitutes the major part of total capital of the banking
company. It helps to know the current condition of the bank, the total amount of its
current assets, and the total amount of its current liabilities.
The theoretical aspects of the study with detail relevance to banking system, progress
of commercial banks, introduction to working capital management, profile of the State
Bank of India which speaks about the introduction of SBI, SWOT analysis of SBI, its
major competitors serve as introductory chapter.
4.3 ORGANIZATIONAL STRUCTURE
The organization structure of SBI is very strong. There are other private financial banks
that were in a difficult situation in light of overburden and in the meantime SBI was
dealing with multiple times of responsibility. You can discover SBI branches and
ATMs in regions we won't anticipate that they should be there.
21
THE ORGANISATION STRUCTURE ARE AS FOLLOW:-
chairman
DMD (human
resource) &corporate DMD (finance)
developmet officer
MD ( corporate
MD ( retail and Degital
banking and global MD ( risk and SARG )
banking )
market )
DMD (stategy ) & chief DND (corporate DMD & chief Credit
Digital officer account group) Officer
DMD ( chief Operating corporate client group

DND (SARG)
Officer ) 1
Internal Ombudsman
global market
FIG 4.2
22
4.4 Products and services
Individual banking
 SBI Term Deposits,
 SBI Loan for Pensioners,
 SBI Recurring Deposits Loan Against Mortgage of Property,
 SBI Housing Loan Against Shares and Debentures,
 SBI Car Loan Rent Plus Scheme,
 SBI Educational Loan Medi-Plus Scheme.
4.5 Different services
 Farming/rural banking,
 NRI services,
 ATM services,
 Demat services,
23
 Corporate banking,
 Internet banking,
 Mobile banking,
 Worldwide banking,
 Safe deposit locker,
 RBIEFT,
 E-Pay,
 Gift cheques
4.6 THE PRESENT SITUATION OF BANKS
At present, by and large, banking in India is considered as genuinely developed. Indeed,

even as far as nature of resources and capital ampleness is considered, Indian banks are
considered to have spotless, solid and straightforward accounting reports when
contrasted with different banks in equivalent economies in their district. The Reserve
Bank of India is a self-sufficient body, with insignificant pressure from the public
authority. The expressed strategy of the Bank on the Indian Rupee is to oversee
unpredictability expressed conversion scale and this has generally been valid with no
expressed conversion scale. With the development in the Indian economy expected to
be solid for a long while particularly in its administrations area, the interest for banking
24
administrations especially retail banking, home loans and speculation administrations
are required to be powerful. M&A, takeovers, resource deals and considerably more
activity (as it is unwinding in China) will occur on this front in India.
SBI’s roots can be traced back to the first bank of India, the Bank of Calcutta, which
was founded in 1806. However, SBI’s direct predecessor was the Imperial Bank of
India. The State Bank of India arose as a pacesetter, with its tasks completed by the 480
workplaces containing branches, sub workplaces, and three local head offices, acquired
from the imperial bank. Rather than filling in as simple archives of the local area’s
reserve funds and loaning to reliable gatherings, the State Bank of India obliged the
requirements of the clients, by banking deliberately. The bank served the heterogeneous
monetary necessities of the arranged financial turn of events.
If the rising adoption of online and mobile banking in millennials is any indication, it
is likely that the brick-and-mortar banking will have less relevance to the younger
generation. The cashless economy is driving digital transformation faster than ever,
with more banking organisations adopting digital banking. At SBI, we are highly
cognisant of this trend, and we are leading the digital transformation drive to serve an
increasingly digital India.
State Bank of India (SBI) is an Indian multinational public sector bank and financial
services statutory body headquartered in Mumbai, Maharashtra. SBI is the 49th largest
bank in the world by total assets and ranked 221st in the Fortune Global 500 list of the
world's biggest corporations of 2020, being the only Indian bank on the list. It is a public
sector bank and the largest bank in India with a 23% market share by assets and a 25%
share of the total loan and deposits market. It is also the fifth largest employer in India
with nearly 250,000 employees. On 14 September 2022, State Bank of India became
the third lender (after HDFC Bank and ICICI Bank) and seventh Indian company to
cross the ₹ 5-trillion market capitalisation on the Indian stock exchanges for the first
time.
25
State Bank of India
The Banker to Every Indian
State Bank Bhavan, Nariman Point, Mumbai
FIG 4.3
26
INFORMATION :-
Formerly Imperial Bank of India
Type CPSU
ISIN INE062A01020
Predecessor
Imperial Bank of India ( 1921-195)
Bank of Calcutta (1806-1921)
Bank of Bombay( 1840-1921)
Products Retail banking

Corporate banking
Investment banking
Mortgage loans
Private banking
Wealth management
Credit cards
Finance and Insurance
Revenue Increase ₹406,973 crore (US$51
billion)(2022)
Operating income ₹78,898 crore (US$9.9 billion) (2022)
Net income ₹43,774 crore (US$5.5 billion) (2022)
Total asset ₹5,177,545 crore (US$650 billion)(2022)
Total equity ₹300,972 crore (US$38 billion) (2022
Parents Ministry of finance ( government of India)
Capital ratio Tier 1 11.03%(2022)
TABLE 4.1
27
The bank descends from the Bank of Calcutta, founded in 1806 via the Imperial Bank
of India, making it the oldest commercial bank in the Indian subcontinent. The Bank of
Madras merged into the other two presidency banks in British India, the Bank of
Calcutta and the Bank of Bombay, to form the Imperial Bank of India, which in turn
became the State Bank of India in 1955. Overall the bank has been formed from the
merger and acquisition of more than twenty banks over the course of its 200 year
history. The Government of India took control of the Imperial Bank of India in 1955,
with Reserve Bank of India (India's central bank) taking a 60% stake, renaming it State
Bank of India.
16th Aug 2022 an attempt to facilitate and support start-ups in the country, the State
Bank of India (SBI) announced the launch of its first "state-of-the-art" dedicated branch
for start-ups in the country in Bengaluru.
NET PROFIT FOR FY 2020, 2021, 2022
Rs in crore FY2020 FY2021 FY2022
Deposits 3,241,621 3,681,277 4,051,534
Advance 2325290 2449498 2733967
investment 1046955 1351705 1481445
Total asset 3951394 4534430 4987597
Interest income 257324 265151 275457
Interest expenses 159239 154441 154750
Net interest income 98085 110710 120708
28
Non-interest 45221 43496 40564
income
Total operating 143306 154206 161272
expenses
Staff expenses 45715 50936 50144
Overhead expenses 29459 31716 35836
total operating 75174 82652 85979

expenses
Operating profit 68133 71554 75292
Total provision 53645 51144 36198
Net profit 14488 20410 31676*
TABLE 4.2
State Bank of India (SBI) is an Indian multinational public sector bank and financial
services statutory body headquartered in Mumbai, Maharashtra. SBI is the 49th largest
bank in the world by total assets and ranked 221st in the Fortune Global 500 list of the
world's biggest corporations of 2020, being the only Indian bank on the list. It is a public
sector bank and the largest bank in India with a 23% market share by assets and a 25%
share of the total loan and deposits market. It is also the fifth largest employer in India
with nearly 250,000 employees. On 14 September 2022, State Bank of India became
the third lender (after HDFC Bank and ICICI Bank) and seventh Indian company to
cross the ₹ 5-trillion market capitalisation on the Indian stock exchanges for the first
time.
4.7 ECONOMIC OVERVIEW:-
After witnessing significant contraction related to COVID-19 pandemic in 2020, global

economy recovered in 2021. However, the momentum was slowed down in Q2 by a
29
deadlier variant of the virus. The impact of which was fortunately short lived helped
largely by main vaccination drives across the world. Towards the end of Q4 FY2022,
escalated geopolitical tension arising from prolonged Russia-Ukraine conflict has led
to increased financial volatility. Oil and other commodity prices have surged
significantly, thereby worsening the already high inflation dynamics of both advanced
as well as emerging/developing economies. Record inflation has led the US Fed to
accelerate its monetary policy normalisation. This, in tum, has led to capital outflows
from the emerging markets as risk-off takes centre stage. Global growth is thus
expected to moderate to 3.2% in 2022. Even the global trade estimates for 2022 have
been revised downwards to 3.0%.
Against this backdrop, the Indian economy grew by 8.7% in FY2022. On the external
front, our merchandise exports performance remained buoyant growing by 14.53% and
crossing the $400 billion mark in FY2022. However, imports growth too remained
strong at 55% during the year.
Meanwhile, RBI increased the repo rate recently by 40 bps in an off-cycle meeting to
rein in inflation, while supporting growth. However, hardening of global crude and
commodity prices amidst prolonged geopolitical tensions, along with supply chain
issues arising out of prolonged lock down in China could keep inflationary pressures
on the upside. While India is expected to grow at 7.2% in FY2023, the current account
deficit could breach 2.5% of GDP mainly due to geopolitical tensions and elevated
crude oil prices.
4.8 BANK'S PERFORMANCE
With the gradual improvement in economic activity, your Bank's business has
continued to show double digit growth in FY2022
4.9 DEPOSITS
During FY2022, your Bank's total deposits grew by 10.06% to surpass the 740 lakh
crore mark of which domestic deposits grew by 9.80% to 239.20 lakh crore. The CASA
deposits grew by 7.78% to 17.75
30
lakh crore contributed mainly by sustained growth of 10.45% in saving bank deposits.
Amidst the low interest rate environment, CASA ratio of your Bank stood at 45.28%
as of March FY2022, During the year, your Bank opened 98.75 lakh new Savings Bank
Accounts, of which 63% have been opened through the YONO portal/app.
4.10 CREDIT
During FY2022, your Bank's advances grew by 11% to 28.18 lakh crore, compared to
growth of 4.8% in FY2021. While domestic advances grew by 10.27%, foreign offices
advances grew by 15.42%. The domestic loan growth was led by robust growth of
15.11% in retail personal loans which now account for 41.6% of domestic advances.
Agri & SME loans grew by 6.57% and 9.52% during the year to 12.28 lakh crore and
23.06 lakh crore, respectively.
The retail personal loans portfolio has crossed 10 lakh crore mark driven by Home loans
and unsecured Personal loans, which grew by 11.49% and 28.50% respectively during
FY2022
4.11 INVESTMENTS
Your Bank's investment portfolio increased by 9.8% to $14.93 lakh crore in FY2022,
of which 96% are domestic investments. Within the domestic investment portfolio,
60.77% is in HTM category while the rest is under AFS category. The yield on
investment is in line with the interest rate scenario and has come down to 6.07% from
6.32% in FY2021.
4.12 PROFITABILITY
During FY2022, as the economy recovered from the effects of COVID-19 during the
second half, your Bank's performance displayed a smart recovery. The standalone net
profit has increased by 55% over previous year to 31,676 crore in FY2022. Your Bank
has also registered improvement on the asset quality front, provision coverage and NIM
31
The Net Interest Income of the Bank registered a healthy growth of 9.03% over the
previous year, to 21,20,708 crore. Growth in the lending book, together with control in
slippages have contributed to higher interest income Credit costs have also declined
significantly by 57 bps to 0.55% in FY2022. The Operating Profit of your Bank for
FY2022 was €75,292
4.13 A STUDY ON WORKING CAPITAL MANAGENT IN SBI
Powers for supervision & control of banks. The Act also vested licensing powers & the
authority to conduct inspections in RBI.
In 1955, RBI acquired control of the "Imperial Bank of India", which was renamed as
State Bank of India. In 1959, SBI took over control of eight private banks floated in the
erstwhile princely states, making them as its 100% subsidiaries.
RBI was empowered in 1960, to force compulsory merger of weak banks with the
strong ones. The total number of banks was thus reduced from 566 in 1951 to 85 in
1969. In July 1969, government nationalized 14 banks having deposits of Rs. 50 crores
& above.
In 1980, government acquired 6 more banks with deposits of more than Rs. 200 crores.
Nationalization of banks was to make them pay the role of catalytic agents for economic
growth. The Narsimham Committee report suggested wide ranging reforms for banking
sector in 1992 to introduce internationally accepted banking practices.
The amendment of Banking Regulation Act in 1993 saw the entry of new private sector
banks. Banking segment in India functions under the umbrella of Reserve Bank of India
the regulatory, central bank.
THIS SEGMENT BROADLY CONSISTS OF:
1. Commercial Banks
32
2. Co-operative Banks
COMMERCIAL BANKS
 The commercial banking structure in India consists of:

 Scheduled Commercial Banks Unscheduled Banks
Scheduled Commercial Banks constitute those banks which have been included in the
second Scheduled of Reserve Bank of India (RBI) Act, 1934. RBI in turn includes only
those banks in this schedule which satisfy the criteria laid down vide section 42 (60) of
the Act. Some co-operative banks are scheduled commercial banks albeit not all co-
operative banks are. Being a part of the second schedule confers some benefits to the
bank in terms of access to accommodation by RBI during the time of liquidity
constraints. At t ame time, however, this status also subjects the bank to certain
conditions and obligation towards the reserve regulations of RBI. This sub sector can
broadly be classified into:
 Public sector
 Private sector
 Foreign banks
Public sector banks have either the Government of India or Reserve Bank of India as
the majority shareholder. This segment comprises of:
State Bank of India (SBI) and its subsidiaries;
Other nationalized banks.
4.14SUBSIDIARIE
SBI provides a range of banking products through its network of branches in India and
overseas, including products aimed at non-resident Indians (NRIs). SBI has 16 regional
hubs and 57 zonal offices that are located at important cities throughout India.
33
 .DOMESTIC
SBI has over 24000 branches in India in the financial year 2012–13, its revenue was
₹2.005 trillion (US$25 billion), out of which domestic operations contributed to 95.35%
of revenue. Similarly, domestic operations contributed to 88.37% of total profits for the
same financial year.
Under the Pradhan Mantri Jan Dhan Yojana of financial inclusion launched by
Government in August 2014, SBI held 11,300 camps and opened over 3 million
accounts by September, which included 2.1 million accounts in rural areas and 1.57
million accounts in urban areas.
 INTERNATIONAL
As of 2014–15, the bank had 191 overseas offices spread over 36 countries having the
largest presence in foreign markets among Indian banks.
o SBI Australia
o SBI Bangladesh
o SBI Bahrain
o SBI Botswana
The SBI Botswana subsidiary was registered on the 27th January 2006 and was issued
a banking licence by the Bank of Botswana on the 29th July 2013. The subsidiary
handed over its banking licence and closed its operations in the country.
 NON-BANKING SUBSIDIARIES
Apart from five of its associate banks (merged with SBI since 1 April 2017), SBI's non-
banking subsidiaries include:
o SBI Capital Markets Ltd

o SBI Cards & Payments Services Pvt. Ltd. (SBICPSL)
o SBI Life Insurance Company Limited
o SBI Mutual Fund
34
In March 2001, SBI (with 74% of the total capital), joined with BNP Paribas (with 26%
of the remaining capital), to form a joint venture life insurance company named SBI
Life Insurance company Ltd.
35
CHAPTER 5:-INDUSTRIAL CREDIT AND INVESTMENT
CORPORATION OF INDIA
Bank to Bank refers to the digital and technological transformation of the Bank. At
ICICI Bank, technology is being integrated into every aspect, from delivering value to
customers to optimising internal operations. We believe this would enable the Bank to
be responsive to the dynamic preferences of customers while strengthening our vision
to be the trusted financial service provider to customers.
The Bank recognises the need for an effective technology architecture that facilitates
faster transactions, is ubiquitous, enables decision-making and creates value
proposition for every customer. We are investing in strengthening our technological
capabilities, with key priorities being technology platforms, embedded banking, cloud
adoption and data platforms and analytics.
5.1 HISTORY
ICICI was formed in 1955 at the initiative of the World Bank, the Government of India
and representatives of Indian industry. The principal objective was to create a
development financial institution for providing medium-term and long-term project
financing to Indian businesses. Until the late 1980s, ICICI primarily focused its
activities on project finance, providing long-term funds to a variety of industrial
projects. With the liberalization of the financial sector in India in the 1990s, ICICI
transformed its business from a development financial institution offering only project
finance to a diversified financial services provider that, along with its subsidiaries and
other group companies, offered a wide variety of products and services. As India’s
economy became more market-oriented and integrated with the world economy, ICICI
capitalized on the new opportunities to provide a wider range of financial products and
services to a broader spectrum of clients. ICICI Bank was incorporated in 1994 as a
part of the ICICI group. In 1999, ICICI became the first Indian company and the first
bank or financial institution from non-Japan Asia to be listed on the New York Stock
Exchange.
36
The issue of universal banking, which in the Indian context meant conversion of long-
term lending institutions such as ICICI into commercial banks, had been discussed at
length in the late 1990s. Conversion into a bank offered ICICI the ability to accept low-
cost demand deposits and offer a wider range of products and services, and greater
opportunities for earning non-fund based income in the form of banking fees and
commissions. After consideration of various corporate structuring alternatives in the
context of the emerging competitive scenario in the Indian banking industry, and the
move towards universal banking, the managements of ICICI and ICICI Bank formed
the view that the merger of ICICI with ICICI Bank would be the optimal strategic
alternative for both entities, and would create the optimal legal structure for ICICI
group's universal banking strategy. The merger would enhance value for ICICI
shareholders through the merged entity's access to low-cost deposits, greater
opportunities for earning fee-based income and the ability to participate in the payments
system and provide transaction-banking services. The merger would enhance value for
ICICI Bank shareholders through a large capital base and scale of operations, seamless
access to ICICI's strong corporate relationships built up over five decades, entry into
new business segments, higher market share in various business segments, particularly
fee-based services, and access to the vast talent pool of ICICI and its subsidiaries.
In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger
of ICICI and two of its wholly-owned retail finance subsidiaries, ICICI Personal
Financial Services Limited and ICICI Capital Services Limited, with ICICI Bank. The
merger was approved by shareholders of ICICI and ICICI Bank in January 2002, by the
High Court of Gujarat at Ahmedabad in March 2002, and by the High Court of
Judicature at Mumbai and the Reserve Bank of India in April 2002. Consequent to the
merger, the ICICI group's financing and banking operations, both wholesale and retail,
were integrated in a single entity.
5.2 ABOUT THIS REPORT
This is ICICI Bank's Annual Report for the year ended March 31, 2022 It has been
prepared in accordance with Indian regulatory reporting requirements as well as the
principles of the International Integrated Reporting Framework as developed by the
International Integrated Reporting Council (IIRC), Through this report, the Bank aims
37
to provide its stakeholders a comprehensive view of its operations, performance. Its
financial and non-financial resources and strategy to create long-term value. The report
provides insights into the Bank's primary activities, its strategic priorities, risks and
mitigants, governance structure, and the manner in which it has leveraged the six
capitals, namely Financial. Human, Intellectual, Manufactured, Social and
Relationship, and Natural
5.3 REPORTING BOUNDARY
The non-financial information in the Integrated Report largely covers data on the India
operations of ICICI Bank Limited and ICICI Foundation for Inclusive Growth
5.4 REPORTING PERIOD
The Annual Report provides material information relating to the Bank's strategy and
business model, operating context, performance and statutory disclosures covering the
financial year April 1, 2021 to March 31, 2022
Certain statements in this Annual Report relating to a future period of time (including
inter alia concerning our future business plans or growth prospects) are forward-looking
Statements intended to qualify for the 'safe harbour under applicable securities laws
including the US Private Securities Litigation Reform Act of 1995. Such forward-
looking statements involve a number of risks and uncertainties that could cause actual
results to differ materially from those in such forward-looking statements. These risks
and uncertainties include, but are not limited to statutory and regulatory changes,
international economic and business. conditions, political or economic instability in the
jurisdictions where we have operations, increase in non-performing loans,
unanticipated changes in interest rates, foreign exchange rates, equity prices or other
rates or prices, our growth and expansion in business, the adequacy of our allowance
for credit losses, the actual growth in demand for banking products and services,
investment income, cash flow projections, our exposure to market risks, changes in
India's sovereign rating, and the impact of the Covid-19 pandemic which could result
in fewer business opportunities, lower revenues, and an increase in the levels of non-
38
performing assets and provisions, depending among other factors upon the period of
time for which the pandemic extends, the remedial measures adopted by governments
and central banks, and the time taken for economic activity to resume at normal levels
after the pandemic, as well as other risks detailed in the reports filed by us with the
United States Securities and Exchange Commission. Any forward-looking statements
contained herein are based on assumptions that we believe to be reasonable as of the
date of this release. ICICI Bank undertakes no obligation to update forward-looking
statements to reflect events or circumstances after the date thereof.
During fiscal 2022, ICICI Bank stayed committed to its articulated strategy of targeting
risk-calibrated growth in core operating profit, while ensuring resilience against
potential risks and being well- poised to capitalise on market opportunities.
5.5THE PRESENT SITUATION OF BANK
Fiscal 2022 was marked by a strong recovery in economic activities, bringing to the
fore the inherent strengths in the Indian economy. Despite the setback from the Covid-
19 pandemic earlier, and with variants. of the virus and localised lockdowns during the
year, the Indian economy was resilient and saw a strong rebound and progress towards
normalcy. The recovery in the Indian economy was broad-based, and supported by the
rollout of the vaccination programme. Amidst these positive developments, however,
the year ended. with new challenges of high energy prices and inflation, geopolitical
tensions, supply side disruptions and a likely slowdown in global growth. Nonetheless,
we remain optimistic of India potential
During fiscal 2022, ICICI Bank stayed committed to its articulated strategy of targeting
risk-calibrated growth in core operating profit, while ensuring resilience against
potential risks and being well-poised to capitalise on market opportunities. The strong
financial performance and portfolio quality that the Bank has delivered in the last three
years demonstrates the efficacy of the strategy. The healthy growth in core operating
profit and profit after tax in fiscal 2022 reflect the strong underlying performance of the
business. The Bank grew its market share across key segments, while maintaining credit
discipline and a robust balance sheet. The decline in credit costs during the year was a
39
further pointer to the effective risk management framework adopted by the Bank over
the last few years.
A key focal point for business growth is to create value for customers. The Bank is
pursuing this through a customer-centric approach, underlined by the principles of 'Fair
to Customer, Fair to Bank' and 'One Bank, One. ROE. These value drivers lend
confidence to the Bank's focus on 'customer-360' and becoming a trusted financial
partner for its clients. However, the dynamism, creativity and commitment of our
employees are a key driver of the Bank's success. Working as one team to serve
customers and facilitating cross-functional collaboration will differentiate the Bank and
enable value-unlocking of our franchise.
A core enabler to meet the Bank's strategic objectives is technology. The initiatives in
developing a strong technology architecture, the focus on platforms and digitisation,
and continuous investments in innovations and security features are enabling the Bank
to respond to the needs of customers with agility. The Bank's mobile applications,
iMobile Pay and Insta BIZ, have now become universal and open architecture, enabling
the Bank to expand the number of people and businesses that it can serve. In today's
dynamic environment, it is imperative to be responsive to new technologies, digital
processes and design customer digital journeys with speedy time-to-market. The Bank's
competencies will only. Strengthen as it progresses on transforming from Bank to Bank
The Bank made further progress in the area of Environmental, Social and Governance
(ESG), with the adoption of a Board-approved ESG policy and formalising Board
oversight on ESG by including it within the remit considerations of stakeholders, the
Bank undertook a survey to identify ESG issues believed to be material for the Bank
by our stakeholders. The top five issues that emerged were compliance with regulations
and other laws, digital innovation/transformation, data privacy and cyber security,
corporate governance & business ethics, Chairman and transparency & disclosures. An
approach to integrate ESG and climate change risks in the Bank's lending and risk
management has also been developed. The Bank will remain cognizant of the structural
shifts in a decarbonising world, and will aim to build mitigants while capitalising on
the opportunities that would emerge within India's national goals and commitments
The Bank endeavours to promote long-term sustainable growth in the economy through
responsible corporate citizenship. The dedicated focus of ICICI Foundation on creating
40
a positive social and environmental impact has led to several projects being undertaken
across the country. The efforts made in the areas of healthcare and environmental
sustainability, especially in rural and remote areas, have yielded positive impact.
The Board is committed to maintaining highest standards of corporate governance and

will continue to review and strengthen these practices. During the year, the Board
approved the Risk and Compliance Culture Policy, anchored on five key principles.
The Board and its Committees conducted regular reviews to assess the Bank's response
to opportunities and challenges and evaluating the impact on the business and loan
portfolio. Ensuring organisational resilience and responsiveness to the evolving
technological developments and cyber security are priority areas of focus. The Board
will continue to maintain integrity, fairness and transparency in our engagement with
all our stakeholders.
Looking ahead, uncertainties have resurfaced as economies will have to tackle issues
of inflation, monetary policy actions and tightening global liquidity conditions. A
slowdown in global economic growth seems inevitable in the immediate period, with
likely spill over to India. The Bank will focus on remaining strong and resilient while
seeking to maintain sustainable, risk-calibrated and profitable growth in business.
ICICI Bank's objective is to grow the core operating profit in a risk-calibrated manner,
based on the principles of 'Fair to Customer, Fair to Bank' and 'One Bank, One ROE'.
ICICI Bank Limited is an Indian multinational bank and financial services company
headquartered in Mumbai. It offers a wide range of banking products and financial
services for corporate and retail customers through a variety of delivery channels and
specialized subsidiaries in the areas of investment banking, life, non-life insurance,
venture capital and asset management.
41
HEADQUARTER IN BANDRA KURLA COPLEX, MUMBAI
FIG 5.1
Formerly Industrial Credit and Investment

Corporation of India
Type Private Development Finance Institution
Traded as BSE: 532174

NSE: ICICIBANK
NYSE: IBN
BSE SENSEX Constituent
NSE NIFTY 50 Constituent
ISIN INE090A01021
Industry Financial services
Founded 5 January 1994; 29 years ago
42
Products Banking, commodities, credit cards,
equities trading, insurance, investment
management, mortgage loans, mutual
funds, private equity, risk management,
wealth management, asset management
Revenue ₹157,536 crore (US$20 billion) (2022
Net income ₹25,783 crore (US$3.2 billion) (2022)

Total assets ₹1,752,637 crore (US$220 billion) (2022)
Total equity ₹180,662 crore (US$23 billion) (2022)
Capital ratio Tier 1 16.97% (2022)
TABLE 5.1
This development finance institution has a network of 5,275 branches and 15,589
ATMs across India and has a presence in 17 countries. The bank has subsidiaries in the
United Kingdom and Canada; branches in United States, Singapore, Bahrain, Hong
Kong, Qatar, Oman, Dubai International Finance Centre, China and South Africa; as
well as representative offices in United Arab Emirates, Bangladesh, Malaysia and
Indonesia. The company's UK subsidiary has also established branches in Belgium and
Germany
5.6 ADVANTAGES
 Earn Interest
A savings account helps you earn interest on the deposited amount. To attract new
customers, banks now offer higher interest rates and a host of other benefits such as
discounts on locker rentals, unlimited ATM transactions, and more. Moreover, some of
the banks also offer many different types of savings account to meet the different needs
of the customers.
43
 Safest Investment Option
One of the biggest advantages of saving account is unlike most other investment
options, a savings bank account does not invest your money but still offers modest
returns. All you need to do is to deposit money in your savings account to take
advantage of this feature.
 Minimum Investment Amount
Browse through the different investment options and you’ll see that a savings account
is also the most affordable. You are simply required to keep the minimum balance in
your account to keep earning interest. This minimum deposit amount can be different
for every bank.
5.7 DISADVANTAGES
 Interest Rates Can Change
One important disadvantage of a savings bank account is that the interest rates offered
by the bank are variable. This means that the bank has the right to make changes to the
interest rate. While the changes are generally minimal, it is possible that the interest
rate of a savings account now can be lower 6 months down the line.
 Easy Access
While easy access to funds is seen as one of the most important features of savings
account, it can also work as a disadvantage for some people. As these accounts allow
you to access your funds anytime you like, people are more tempted to spend. This can
make long-term savings challenging.
 Minimum Balance Requirement
When you open a savings bank account, you’ll be required to maintain a minimum
average balance in your account. If you fail to maintain this balance, the bank charges
44
a penalty for the same. So, before opening an account, make sure that you check the
minimum balance requirements of the bank and always maintain this balance to avoid
the penalty.
5.8 WORKING CAPITAL MISTAKES TO AVOID AT ALL COSTS
Working capital is the backbone of a business. By definition, it is the funds available to

a company for managing daily operating expenditures and paying off short-term
liabilities. Working capital thus enables a business to work and continue its day-to-day
operations. Business owners must be cognizant of their working capital mistakes and
must also examine and address them from time to time.
Poorly used working capital not only results in losses but can also derail the business
in the long term. While no business will fully mismanage its working capital, a slight
oversight in day-to-day operations can result in working capital management mistakes.
Here are 7 working capital mistakes that can cost you your business, if not identified
and corrected in time:
 UNPLANNED EXPANSION
Not taking into keen consideration the additional cash requirements to fund your growth
and expansion plans can put a strain on your working capital. If your growth plans do
not succeed or do not provide the estimated business, you can end up borrowing funds
at a higher interest cost, just to manage daily operations and keep the firm running.
 POOR PRODUCTION PLANNING
If your business forecasting and production planning are constantly off the mark,
especially if you are producing more than you can sell, you end up tying your working
capital in raw material and in managing and storing the excess inventory. While this is
one of the most common and costly working capital mistakes, it can be kept in check
by regular analysis of your sales forecast and timely corrections to it so that your
procurement and production plans can be corrected, as per business needs.
45
 EXTENDING HIGH CREDIT PERIOD
More often than not, businesses extend the credit period beyond their usual norm to get
new businesses, maintain business relations or keep the account running. For example,
their normal credit period might be 30 days, but to get business they might extend it to
45 days or 60 days. While this is not completely avoidable, making it a regular practice
or extending credit to all customers can adversely affect your cash flow and thus, your
working capital.
 NEGLECTING THE COLLECTION OF ACCOUNTS RECEIVABLES

ON TIME
Your account receivables are your main source of working capital funds. Not having a
proper collection process or failing to collect dues from customers on time can put a
strain on your working capital. Unfortunately for quite a few businesses, collecting
accounts receivables is like Achilles’ heel. While it appears as an asset in the balance
sheet, it can easily turn into a liability for the company in the form of loans acquired
for daily operations at a higher interest cost.
 RELYING ON VENDORS FOR WORKING CAPITAL
It is common for businesses to ask vendors for extended credit periods to tide through
low cash situations. For example, your vendor gives you a credit period of 30 days, but
you are not able to pay on the due date as your funds are running low. You ask for
another 10-15 days to clear the dues. While using vendors as a source of credit is a
reasonable working capital strategy, it comes at a cost. Frequent delays in vendor
payments could lead to vendors losing trust in your business. This could result in
delayed supplies or vendors refusing to extend your credit.
 NOT TAKING AN ADVANCE ON LARGE ORDERS
Catering to large one-time orders requires additional funds. Other than the investment
in extra raw material, sometimes additional manpower and machinery are also required
to complete huge orders. If you do not take an advance to cater to the additional
46
expenditure or avail of a bank loan, it has to be funded through your working capital.
This can lead to a shortage of funds, as large orders may get delayed.
 NEGLECTING TO ACCOUNT FOR SHORT TERM LIABILITIES AND

CONTINGENCIES
Apart from the payables to suppliers and vendors, companies can have other short-term
liabilities in the form of loan EMIs, lease renewals and income tax. All these expenses
reduce the funds available as working capital. If these short-term liabilities are not taken
into account when calculating the working capital requirements of the firm, it can create
a cash shortage when the payment is finally due. Similarly, there remains a need to
allocate funds for unforeseen events/contingencies. For example, a rise in the transport
cost owing to fuel price increase, labours demanding pay rise/overtime wages, etc.
5.9 YOU CAN GET THE FOLLOWING LOANS/FACILITIES

FROM ICICI BANK TO MANAGE YOUR WORKING CAPITAL
 Cash Credit limit/Overdraft facility to meet your everyday requirements
 Working capital limits to meet your export requirement. Export Credit for
providing Pre and Post-Shipment finance to exporters
 Working capital limits in form of non-fund based facilities – Letters of Credit

and Buyers Credit to ensure timely delivery of goods
 Various types of Bank Guarantees to meet performance and financial

obligations
47
5.10WHY ICICI BANK WORKING CAPITAL FINANCE IS THE
RIGHT CHOICE FOR YOU
o Our decentralised operations ensure fast processing and quick

availability of loans
o Our Relationship Manager works with you to help meet all your needs
o We offer competitive interest rates, commission and charges
Our 3,000+ branch network and Anywhere Banking facility ensure ease of
operations, collections and pay
5.11 ICICI BANK TOTAL CURRENT ASSETS 2010-2022
ICICI Bank total current assets from 2010 to 2022. Total current assets can be defined
as the sum of all assets that are classified as current because they will provide a benefit
within one year.
ICICI Bank total current assets for the quarter ending December 31, 2022 were
$143.713B, a 0.97% increase year-over-year.
ICICI Bank total current assets for 2022 were $147.86B, a 16.6% increase from 2021.
48
ICICI Bank Annual Total Current Assets
(Millions of US $)
YEAR CURRENT ASSETS
2022 $ 147,860
2021 $ 126,815
2020 117,608
2019 $ 105,012
2018 $ 101,657
2017 $ 88,775
2016 $ 85,497
2015 $ 79,725
2014 $ 72,310
2013 $ 69,799
2012 $ 7,572
2011 $ 8,625
2010 $ 9,947
TABLE 5.2
ICICI Bank Limited was formed in 1955 at the initiative of the World Bank, the
government of India and Indian industry representatives. The company offers a wide
range of banking products and financial services to corporate and retail customers.
ICICI Bank's subsidiaries' ICICI Prudential Life Insurance Company, ICICI Lombard
General Insurance Company, ICICI Prudential Asset Management Company, ICICI
Securities Limited, ICICI Securities Primary Dealership Limited and ICICI Venture
Funds Management Company' operate in areas of investment banking, life and non-life
49
insurance, housing finance, venture capital, the securities broking business and asset
management. ICICI Bank has banking subsidiaries in the United Kingdom and Canada.
50
CHAPTER 6:-COMPARATIVE STUDY ON SBI AND ICICI BANK
SBI is the largest and oldest bank in India. ICICI is fairly new. SBI is state owned and
operated, ICICI is privately owned.
The State Bank of India (SBI) and ICICI Bank are the top two largest banks in India,
respectively. They are followed by their competitors, the Punjab National Bank and
HDFC Bank. SBI is the largest and oldest bank, dating back centuries, whereas, ICICI
is comparatively fairly new.
SBI dates back to British India. Its ancestry can be traced to the Bank of Calcutta which
was founded in 1806, as well the Bank of Bombay (1840) and the Bank of Madras
(1843). In 1921, these three amalgamated into the Imperial Bank of India. In 1955, the
Imperial Bank of India became the State Bank of India.
Also, Industrial Credit and Investment Corporation of India (ICICI), a financial

institution was formed in 1955 as a joint-venture of the World Bank, the Government
of India and representatives of Indian industry. In 1994, ICICI Limited promoted ICICI
Bank as its wholly-owned subsidiary. The principal objective was to create a
development financial institution for providing medium-term and long-term project
financing to Indian businesses. This was done in order to create a diversified financial
services group offering a wide variety of products and services
In 1999, ICICI become the first Indian company and the first bank or financial
institution from non-Japan Asia to be listed on the NYSE. In 2002, ICICI merged with
ICICI Bank and two of its own wholly-owned retail finance subsidiaries, ICICI
Personal Financial Services Limited and ICICI Capital Services Limited. ICICI Bank
is now the second largest bank in India by assets and third largest by market
capitalization.
Still, not to be outdone, SBI is considered as one of the largest financial institutions in
the world. According to Forbes, SBI is the 29th most reputed company in the world. In
India, it has a market share of 20% among Indian commercial banks in deposits and
loans. In comparison to ICICI Bank, SBI pays a higher savings interest rate and a lower
loan rate. It also put a lot of emphasis on personal relations. However, an account with
ICICI Bank has become somewhat of a status symbol. ICICI Bank is thought to provide
51
better quality services, but is known to be strict in cases of minimum balances and
returns the check if minimum balance requirements are not met. It takes a very
professional approach towards its customers; some criticize this, claiming the
employees appear cold.
However, being the top public sector bank in India, SBI had become somewhat
complacent, but SBI has now modernized over the last decade and is offering services
on par with ICICI. Still, ICICI is progressing at a fast rate, and may overtake SBI in the
near future. In 2012, ICICI’s deposits increased 200%, five times more than SBI’s, and
its revenue grew seven times that of SBI’s revenue growth of 30%.
A DETAIL COMPARISON INCLUDES:-
SBI ICICI
Types of bank Public sector ( government Private sector

owned)
Established in 1955 ancestry to british India ICICI form in1955; ICICI
, and the bank of calcutta bank formed in 1994
founded in 1806
Traded As NSE : SBIN BSE : 532174
BSE : 500112 NSE: ICICIBANK
LSE : SBID NYSE : IBN
BSE SENSX BSE SENSX
Constituent Constituent
Ranking ( according in asset) Largest bank in India Second largest bank in India
Branches ( in India ) 22,266 5275
52
Product Credit cards, Consumer Credit cards, Consumer
banking, corporate banking, banking, corporate banking,
finance and insurance, finance and insurance,
investment banking, investment banking,
mortgage loans, private mortgage loans, private
banking, wealth management banking, wealth management
Asset ( in 2022) 0.67% 1342314.92
Revenue (in 2022) 22266 21.241B
Profit ( in 2022) 13264 11,765
Number of employees ( in 2,45,642 97,354
2022)
TABLE 6.1
6.1 ADVANTAGES OF ICICI OVER SBI:
ICICI is growing at a very fast rate with a total asset of Rs. 3,744.10 billion. In the area
of human relations, the two are taking divergent paths. SBI, which had over I lacks
employees, has reduced headcount through a voluntary retirement scheme and is
cautious about adding headcount
ICICI Bank, on the other hand, is setting up regional hubs where its workforce would
be concentrated and plans to add 20,000 to its headcount every year. The group plans
to add between 75,000 and 1, 00,000 employees in the next few years ICICI Bank is
also set to outdo SBI is in its international book
- An area where it has been very aggressive.
6.2 ADVANTAGES OF SBI OVER ICICI:
 SBI is the largest and oldest bank of India. Its major stocks are held by
government of India. So this bank enjoys the trust of its Customers a lot.
 SBI offers flexible tenures of loan repayment.
53
 State bank of India has vast experience in the field of SME (Small and Medium
Enterprise Financing.
 As it is the oldest name so it enjoys public trust a lot.
 SBI have four national level Apex Training Colleges and 54 Learning Centres
spread all over the country the Bank is Continuously engaged in skill
enhancement of its employees. -Some of the training programs are attended by
bankers from banks in other countries.
 SBI group, which has over 10,000 branches, is planning to add another 3,000
branches. -It is also set to become the largest issuer of debit cards and is the
second largest credit card issuer
54
CHAPTER 7:- LITERATURE REVIEW
1. Manish Mittal and Arunna Dhademade: they found that higher

profitability is the only major parameter for evaluating banking sector performance
from the shareholders point of view. It is for the banks to strike a balance between
commercial and social objectives. They found that public sector banks are less
profitable than private sector banks. Foreign banks top the list in terms of net
profitability. Private sector banks earn higher non-interest income than public sector
banks, because these banks offer more and more fee based services to business houses
or corporate sector. Thus there is urgent need for public sector banks to provide such
services to stand in competition with private sector banks.
2. I.M. Pandey: An efficient allocation of capital is the most important financial

function in modern times. It involves decision to commit the firm's funds to the long
term assets. The firm's value will increase if investments are profitable and add to the
shareholders wealth. Financial decisions are important to influence the firm's growth
and to involve commitment of large amount of funds. The types of investment decisions
are expansion of existing business, expansion of new business and replacement and
modernization. The capital budgeting decisions of a firm has to decide the way in which
the capital project will be financed. The financing or capital structure decision. The
assets of a company can be financed either by increasing the owners claims on the
creditors' claims. The various means of financing represent the financial structure of an
enterprise.
3. Medhat Tarawneh: - financial performance is a dependent variable and measured

by Return on Assets (ROA) and the intent income size. The independent variables are
the size of banks as measured by total assets of banks, assets management measured by
asset utilization ratio (Operating income divided by total assets) operational efficiency
measured by the operating efficiency ratio (total operating expenses divided by net
income)
55
4. Vasant desai: - The Reserve Bank of India plays a very vital role. It is known as the
banker's bank. The Reserve Bank of India is the head of all banks. All the money
formulations of commercial banks are done under the Reserve Bank of India. The RBI
performs all the typical functions of a good central bank as it is involved in planning
the economy of the country. The main function is that the RBI should control their
credit. It is mandatory for the Bank to maintain the external value of the rupee. Major
function is that it should also control the currency.
5. K. C. Sharma: - Banking has entered the electronic era. This has been due to reforms
introduced under the WTO compliances. Private sector banks have been permitted to
open their shops in the country. These banks are either foreign or domestic banks with
foreign partnerships. Some of them have been set up by Development Financial
Institutions in order to embrace concept of universal banking, as practiced in advanced
countries. The private sector on the other hand have began their high tech operations
from the initial stage and made the elite of the country to taste the best banking practices
that happens in the western countries. They have foreseen the digital world and have
seen the emerging electronic market, which has encouraged them to have a better
customer service strategy that would be able to deliver the things as per customer's
requirement.
6. Hr Machirajn international publishers: - Efficiency can be considered from

technical, economical or empirical considerations. Technical efficiency implies
increase in output. In the case of banks defining inputs and output is difficult and hence
certain ratios of costs to assets or operating revenues are used to measure banks
efficiency. In the Indian context public sector banks accounts for a major portion of
banking assets, it is necessary to evaluate the financial decisions of these banks and
compare them with private sector banks to know the quality of financial decisions on
its impact or performance of banks in terms of efficiency, profitability, competitiveness
and other economic variables.
56
7. DR.S. Gurusamy: -One of the key elements of importance for shaping the financial
system of a country is the pension fund. The fund contributes to the development of
social security systems of a country is the pension fund. The fund contributes to the
development of social security system of a country. A fund is established by private
employers, governments, or unions for the payment of retirement benefits. Pension
funds are designed to provide for poverty relief, consumption smoothing etc. Pension
funds not only provide compensation for the loyal service rendered in the past, but in a
broader significance. Works as a measure of socioeconomic justice. Pension system
refers to the framework of arrangement under which individuals gain specified
entitlements to a regular income in retirement called pension.
8. Dangwal and kapoor:-also undertook the study on financial performance of

nationalized banks in India and assessed the growth index value of various parameters
through overall profitability indices. They found that out of 19 banks, four banks had
excellent performance, five banks had good performance and six banks had poor
performance. Thus the performance of nationalized banks differ widely
9. Prasana Chandra: - Fundamental of financial management covers all the aspects of

the subject from the basics overview of the financial environment to the financial
analysis and financial planning. The basic consists of forms of business organization
which gives detailed information about the financial management of the organization.
After the analysis part budgeting of capital and fundamental valuation of concept is in
detail. It provides an introduction to the financial management and to the financial
environment. The fundamental of financial management provides a good coverage of
the basic concepts relating to the financial environment. The topics are explained with
various examples like the tax system, financial institution, banking arrangement & the
regulatory framework. All the concepts are explained using numerous examples &
illustration besides the illustration given within the chapter, additional concepts, tools
& technique with illustration are provided at the end of chapter section. The book takes
an analytical approach and explains the various analytical methods in context.
57
10. Jha DK and D S Sarangi: - The financial performance of seven public sector and
private sector banks during the period 2009-10. They used three sets of ratio, operating
performance ratio, financial ratio and Efficiency ratio. The study revealed that Axis
bank was on the top of these banks followed by ICICI, BOT, PNB, SBI, IDBI and
HDFC.
11. Neeru Mundari, Kamni Tendon, Nidhi Malhotra :- excel books found that there
is significant impact on the SBI's performance due to entry of new private sector banks
as the new banks are profit oriented institutions while traditional banks are operating
with the shackles of social responsibility towards the society. The other reasons that
can be attributed are slow technological up gradation, poor staffing and employment
practices which affect long term profitability of public sector banks. The study revealed
that profitability of SBI is lower than that of private sector banks even predicting of
private sector banks (business per employee) is higher than state banks.
12. Fernando Ferreng: - it is generally agreed that recent economic crisis intensified
worldwide competition among financial institution. This competition has direct impact
on how bank deal with their customer and achieve its objectives performance evaluation
of banks is the key function for improving banks performance. Banks profitability and
success to a large extent depends on bank branch financial performance
13. Ramachandran Azhagasahi and Sandanvn Gejalakshmi:-In their study found

the impact of assets management operational efficiency and bank size on the financial
performance of the public sector and private sector bank. The research revealed that
bank with higher total capital deposits and total assets do not always mean that they
have better financial performance. The overall banking sector is strongly influenced by
assets utilization, Operational efficiency and interest income.
14. Nutan Troke and P K Pachorkar:-The study related that the private sector bank
the percentage of other income in the total income is higher than public sector bank.
58
Public sector bank depend on intent income for their efficiency and performance. The
operational efficiency of private sector banks is better than public sector banks. Private
sector bank use their assets quality better than public sector banks.
15. Dr.Dhanabhakyam & M.kavitha:-in their research used some important ratio to
analyses the financial performance of selected public sector banks such as ratio of
advances to assets, ratio of capital to deposit, ratio of capital to working fund, ratio of
demand deposit to total deposit, credit deposit ratio, return on average net worth ratio,
ratio of liquid assets to working fund etc.
The ratio of advances to assets shows an increasing trend for most of the public sector
bank. It shows aggressiveness of bank in lending which ultimately result in high
profitability. The ratio Of capital to deposit also indicates an increasing trend in the
capital of banks. This ratio enables the bank to meet the contingencies of repayment of
deposit. The ratio of capital to deposit in decline. The ratio capitals to working fund
also indicate that the overall efficiency of the selected public sector banks are good. On
the other hand the ratios of demand depart to total deposit is declining. This indicates
better liquidity position of bank. The credit deposit ratio of most of the bank show an
increasing trend. It shows that the profitability of the banks in government. The return
on average net worth also shown an increasing trend.
16. Debashish Sur (2012) a financial statement is a collection of data organized interims
of some laid down accounting procedures. Financial statements are blue print of the
working or performance of any organization. The users of financial statements are
direct users and indirect users.
The direct users are
 Owners of business
59
 Management
 Creditors
 Tax authorities
 Customers
Indirect users are
 Stock exchanges
 Financial analysis
 Trade associations
 Competitors
 Financial press
 General public.
17. Ravinder Kaur: - A comparative study of SBI and ICICI Bank, the author has
written an International Multidisciplinary Research Journal. Due to globalization,
banking sector has developed a lot. The banking sector in India has very large network.
60
One of the popular banks is the State Bank of India. The SBI has over 16,000 branches
over a wide range of banking. The main objective of study is to examine the financial
performance of SBI and ICICI Bank. SBI is a public sector bank and ICICI bank is a
private sector bank. Ratio analysis was applied to analyse and to compare the trends in
banking business and financial performance.
18. Dr. Anurag B Singh and Ms.Priyanka Tandon: - The researcher has mentioned
the importance of the banking sector in the economic development of the country. In
India banking system is featured by large network of Bank branches, serving many
kinds of financial services of the people. The research Methodology used by there is a
comparative analysis of both the banks based on the mean and compound growth rate
(CGR). The study is based on secondary data collected from magazines, journals &
other published documents. Which was a limitation since it's difficult to prove the
geniuses of the data.
19. Pawankumar Avdhanam and Sriniwas Kolluru, Ramkrishne Fonnd: - in their

study that state bank group other than SBI home finance has performed better
throughout the period of study. Though there was a decline in PAT for the year 2000-
01 but then there was continuous rise in PAT. Most public sector banks have performed
better over year.
20. Vasant Desai: - The performance of a bank can be assessed in there broad
dimensionviz. Business development, customer service and housekeeping. The
resources that a branch has are manpower, premises, planning, system procedure,
organizational structure and general administration. The efficiency of a branch would
be measured by the extent which it has balanced between three parameters
21. William George A J and Dr. Manoj P K:-This research paper is a study of the
modern management philosophy of customer relationship management (CRM) which
deals with the maintenance of a sound relationship with the customers. The study is
61
carried out in the Kerala based commercial banks. Also this study compares the CRM
between the public and private sector banks of the same region. Kerala has been very
conducive and of great benefit for the development of banking sector. The Indian
banking sector is undergoing many changes and the banks are facing many challenges.
Customers switch banks and go to other banks where they find better services and thus
the find it difficult to retain their old customers.
22. MS. Foiza: - The development of electronic commerce is growing at a fast pace
because of advancing global infrastructure. To meet these demands businesses need
innovative ways to create value such as different IT infrastructure, different enterprise
architectures and different ways of thinking about doing business. By adopting
technology in banks it has established the use of different technology tools in banking.
Which enables bank to reduce transaction cost, saving money and also saving time's E-
Banking refers to deploying banking services over electronic and communication
networks directly to customers. Internet banking provides benefits such as cost saving
reaches new segment of population, efficiency. Enhancement of the banks reputation
and better customer service.
23. Cheenu Goel, Chitwan Bhutani Rekhi: - The commercial banking system
provides a large portion of the medium of exchange of a given country and is the
primary instruments through which monetary policy is implemented. Commercial
banks make the productive utilization of idle finds and thus assist the society to produce
wealth. Berry, Kehoe and Lind green’s study (1980) revealed that the most frustrating
aspects of bank marketing were lack of management support, lack of interdepartmental
co-operation, crisis management and government intrusion. It shows that during the
earlier period there was not much focus on marketing of financial services. There was
hardly any marketing done by banks but after 1991 there are tremendous changes in the
banking sector in India competition among banks emerged due to entry of private sector
banks and foreign banks.
62
24. E. Gordon and K. Natarajan: - The economic development of any country
depends on the existence of a well-organized financial system. It includes financial
markets and financial institutions which support the system. Financial system provides
the intermediation between savings and investment and promoters faster economic
development.
25. Garimachoudhary: - used network of banks, productivity of banks, capital

adequacy ratio, and growth of banks as an indicator of measuring banks performance.
The study related that private sector banks have expanded faster than public sector
banks. The capital adequacy of new private sector banks is above RBI minimum
requirements. However the assets base of public sector banks raise faster than private
sector banks.
26. Dr. (Mrs.) Anita (2014):- It is very important for the customer to spend some of
their time in banks to avail all services. Relationship marketing should be emphasized
on the co-operate staff members and special training should be provided also private
banks are ahead of public banks in the strategic intent. Also in order to keep the
customer satisfied the infrastructure of the banks decor sitting facility are adequate also
overall improvement of the banks is necessary by making the customers available with
the latest technology and services. Naloni studied the service quality model for
customers in PSB's she stated that the entry of new private sector banks has led to
improve customer service and products.
27. Renu Bagoria :- The main objective of this paper is to make a comparative study
between private sector banks and public sector banks and the adoption of various
services provided by this bank. The different services provided by these banks are M-
Banking. Net banking, ATM, etc. One of the services provided by the bank i.e. Mobile
banking helps us to conduct numerous financial transactions through mobile phone or
personal digital assistant (pda). Data analysis had been made in private sector banks
like ICICI Bank, INDUSSIND Bank, HDFC Bank, Axis Bank and public sector banks
like SBI Bank, SBBJ, IDBI and OBC Bank. These banks also provide Mobile Banking
63
service. The overall study showed that the transaction of Mobile banking through public
sector bank is higher than private sector.
28. Neetu Sharma, Dr. Richa Chaudhary, dr. harsh porosity: - Banking institution
try to spread Green environment product by way of Finance to those Industries which
make "Green Product" E.g.: Automobile Industry give more importance to battery bike
or solar car etc. Green banking is an umbrella that makes bank sustainable in Economic,
environment & Social dimensions. Green banking is making technological
improvement in banking sector. It is a smart way of thinking with a vision of future
sustainability. Green banking is still a major issue & can take an important for
development of our country India. The environmental friendly activities such as using
energy efficient alliance, implement green data centers help in improving their
operational efficiency as well as cost saving factor for a long run.
29. Alpesh Gajera :- in his research article an financial performance evaluation of

private and public sector banks found that there in significance difference in the
financial performance of these banks and private sector banks are performed better than
public sector banks in respect of capital adequacy ratio and financial performance,
30. Dr Richa Jain, Prof. Mitali Amit Shelankar & Prof Bharti Sumit
Mirchandani:-Tools / Techniques of financial statement analysis: - The various tools
and techniques of financial statement analysis are
 Trend Percentage Analysis: It is also known as Intra firm comparison in which

the financial statements of the same company for few years are compared for
some important series of information.
 Comparative Statement: These are the statement of financial positions at

different periods of time. The financial position is shown in a comparative form
over two period of time. \
64
 Common Size Statements: The common size statements, balance sheet and
income statements are shown in terms of percentages. The data is shown as
percentage of total assets, liabilities and sales.
 Ratio Analysis: It is a technique of analysis and interpretation of financial

statements. It is the
Process of establishing and interpreting various financial ratios for helping in taking
decisions .Funds Flow Statements: It is a statement of studying the changes in the
financial position of a business enterprise between the beginning and the end it is a
statement indicating rises of funds for a period of time.
 Cash Flow Statements: It shows the changes in cash flow between two periods.
Every business needs adequate liquid resources in order to maintain day to day cash
flows. It needs enough cash to by wages and salaries as they fall due and to pay creditors
if it is to keep its workforce and ensure its supplies. Maintaining adequate working
capital; is not just important in the
Short term. Sufficient liquidity must be maintained in order to ensure the survival of
business
 Working Capital Management (WCM) is the management of short term

financing requirements of a firm.
 Working capital management involves the relationship between a firm's

short-term assets and its
 Short-term liabilities.
 The goal of working capital management is to ensure that a firm is able to
65
 Continue its operations and that it has sufficient ability to satisfy both
maturing short-term debt and upcoming operational expenses.
This includes maintaining optimum balance of working capital components
receivables, inventory and payables and using the cash efficiently for day-
to-day operations.
 Optimization of working capital balance means minimizing the working

capital
Requirements and realizing maximum possible revenues.
Corporation Bank (IN STATE BANK OF INDIA)
The working capital limits would be considered only after the project nearing
completion and after ensuring full tie-up of the term loan requirements of the borrower.
These limits would be either in the form of fixed loans or running accounts and/or bill
financing facility.
The finance extended under this category would be for meeting the funds requirements
for day to day operations of the units i.e. to meet recurring expenses such as acquisition
of raw material, the various expenses connected with products, conversion of raw
materials into finished products, marketing and administrative expenses, etc.
 In tune with the Reserve Bank of India guidelines on Loan System for
delivery of bank Credit for working capital purposes to larger borrowers,
the same would be extended in the form of fixed loan (working capital
Demand loan) and cash credit (running account) in the
 ratio of 60:40 in respect of borrowers enjoying aggregate working capital

limits of Rs.10 crore and above from the Banking system. The working
capital demand loan facility shall be for a minimum fixed term of 7 days
subject to roll over at the option of the borrower concerned. .
66
 Eligible Working Capital Limits would be assessed by adopting various
methods such as Projected Turnover Method, Permissible Bank Finance
Method, Cash Budget Method and Net Owned Funds Method, depending
upon the type of borrower, the aggregate working capital facility enjoyed
from the banking system, the scale of operation, nature of activity/enterprise
and the duration/ length of the production cycle, etc..
ICICI Bank
Explore innovative financing solutions specifically designed to fuel your business

growth.
Managing finance is unarguably the most important component of any business. For
MSMEs, timely finance is the key to making the most of business opportunities.
Keeping this in mind, ICICI Bank offers you a host of innovative products and services
which are customized to meet you’re evolving financial needs.
Features & Facilities offered:

 Cash Credit /Overdraft for meeting your day to day requirements
 Export Credit for providing Pre-Shipment & Post Shipment finance to

exporters
 Letters of Credit & Buyers credit for facilitating trade
 Bank Guarantees for meeting performance and financial obligations
67
RS .
5,36,794
20.00% RS 15,66,261
15.00%
10.00%
5.00%
0.00%
ICICI BANK SBI BANK
NET NPA ROCE CAPITAL ADEQUACY
FIG 7.1
In these chart table comparative between ICICI BANK and SBI BANK .balance sheet
size in RS. In crore. All the figure in per percentage. SBI bank leads with high return
and low non-performing assets .
68
CHAPTER 8:- DATA ANALYSIS OF INTERPRETATION OF
DATA
1) NAME :- 68 RESPONSES
FIG 8.1
GENDER NO. OF RESPONDENTS PERCENTAGE ( % )
MALE 38 45.6 %
FEMALE 30 54.4 %
TOTAL 68 100%
TABLE 8.1
INTERPRETATION:-
According to survey males are 45.6 % and females are 54.4 %, so as per the result more
responses are of females.
69
FIG 8.2
QUALIFICATION NO. OF RESPONDENTS PERCENTAGE ( % )
UNDER GRADUATE 48 69.1 %
POST GRADUATE 15 22.1%
OTHERS 5 8.8 %
TOTAL 68 100 %
TABLE 8.2
INTERPRETATION:-
According to survey of Qualification, under graduate are 69.1 % post graduate are 22.1
%, and other are 8.8 %, so as per the result more responses are of under graduate.
70
FIG 8.3
OCCUPATION NO. OF RESPONDENTS PERCENTAGE ( % )
HOUSEWIFE 2 2.9 %
STUDENTS 7 70.6 %
EMPLOYEE 11 16.2 %
PROFESSIONAL 45 10.3 %
TOTAL 68 100 %
TABLE 8.3
INTERPRETATION:-
According to survey of occupation, housewife are 2.9 % students are 70.6 %, employees
are 16.2 %, and professional is 10.3 %, so as per the result more responses are of
students.
71
FIG 8.4
PARTICULAR NO. OF PERCENTAGE ( %

RESPONDENTS )
BELOW 10000 42 60.3 %
10000 – 50000 20 29.4 %
50000 ABOVE 6 10.3 %
TOTAL 68 100%
TABLE 8.4
INTERPRETATION:-
According to survey of income, people having income below 10,000 is 60.3 % , having
income between 10,000 – 50,000 is 29.4 %, and above 50,000 is 10.3 % , so as per the
result more responses are of below 10,000.
72
FIG 8.5
PARTICULAR NO. OF PERCENTAGE ( % )

RESPONDENTS
WEEKLY 26 38.2 %
MONTHLY 20 29.4 %
QUARTLY 13 17.6 %
YERALY 9 14. 7 %
TOTAL 68 100%
TABLE 8.5
INTERPRETATION
1. From the above 26 respondents that is 38.2 % have selected weekly.
2. 20 respondents that is 29.4 % have selected monthly.
3. 12 respondents that is 17.6 % have selected quarterly.
4. And last 10 respondents that is 14.7 % have selected yearly.
73
FIG 8.6

RESPONDENTS
PROFITABILTY 27 39.7 %
LIQUIDITY 26 23. 5 %
BOTH 15 36.8 %
TOTAL 68 100%
TABLE 8.6
ANALYSIS:
1. As par the above pie chart it shows that the 36.8 % of the respondent chooses
both profitability and liquidity.
2. 39.7 % from the above respondent we can interpret that profitability will
increase.
3. And the remaining 23.5 % are fall for liquidity will increase.
74
FIG 8.7

RESPONDENTS
MANAGING CASH 15 22.1 %
MANAGING BILL 21 30.9 %
RECIVABLE AND
PAYABLE
MANAGING DEBTOR 7 10.3 %
AND CREDITOR
ALL OF ABOVE 25 36.8 %
TOTAL 68 100%
TABLE 8.7
INTERPRETATION
From the above table we can interpret that 15 respondents, that is 22.1 % Think that
managing cash can help to optimize working capital. 21 respondents that is 30.9 %
think that managing bills receivable and payables can optimize working capital.
7 respondent, that is 10.3 % think that managing debtors and creditors can help to
optimize working capital.25 respondents that is 36.8 % think that all of these can help
to optimize working capital.
75
FIG 8.8

RESPONDENTS
YES 53 76.5 %
NO 15 23.5 %
TOTAL 68 100%
TABLE 8.8
INTERPRETATION: -
1. As per there pie chart 52 responses said yes

2. As per there pie chart 16 responses said no
76
FIG 8.9
PARTICULAR NO. OF RESPONDENTS PERCENTAGE ( % )
SBI BANK 32 47.1 %
ICICI BANK 36 52. 9 %
TOTAL 68 100%
TABLE 8.9
INTERPRETATION: -
1. As per there pie chart, 36 responses that is 47.1 % think that SBI bank is poor
working capital.
2. As per there pie chart, 32 responses that is 52.9 % think that ICICI bank is poor
working capital.
77
FIG 8.10
PARTICULAR NO. OF RESPONDENTS PERCENTAGE ( % )
SBI BANK 37 54.4 %
ICICI BANK 19 26.5 %
OTHERS 12 19.1 %
TOTAL 68 100%
TABLE 8.10
INTERPRETATION:-
1. As per there pie chart 37 responses , that is 54.4 % thinks that SBI bank
interested to invest in our money
2. 18 responses that is 26.5 % thinks that ICICI bank interested to invest in our
money.
3. 13 responses that is 19.1 % thinks that other bank prefer to invest in our money
78
FIG 8.11
PARTICULAR NO.OF PERCENTAGE ( % )

RESPONDENTS
YES 37 54.4 %
NO 31 45.6 %
TOTAL 68 100%
TABLE 8.11
INTERPRETATION :-
1. As per pie chart 37 responses that is 54.4 % faces capital shortage .
2. 31 responses that is 45.6 % not face capital shortage .
79
FIG 8.12

RESPONDENTS
INVENTORIES 27 38.2 %
MACHINERY 25 25 %
ACCOUNT RECIVABLE 16 36.8 %
TOTAL 68 100%
TABLE 8.12
INTERPRETATION :-
From the above pie chart we can interpret 26 respondents that is 38.2%
have selected inventories. Only 25 respondents that is 25 % have selected
machinery.And last 17 respondents that is 36.8 % have selected account
receivable.
80
FIG 8.13
PATICULAR NO.OF PERCENTAGE ( % )

RESPONDENTS
BALANCE SHEET 23 33.8 %
PROFIT AND LOSS 11 17.6 %
BOTH 34 48.5 %
TOTAL 68 100%
TABLE 8.13
INTERPRETATION : -
From the above table we can interpret 23 respondents that is 33.8 % is selected
balance sheet..12 respondents that is 17.6 % have selected profit and loss. 33
respondents that is 48.5 % have selected both.
81
Fig 8.14

RESPONDENTS
OVER CAPITALISATION 27 39.7 %
OVER TRADING 19 29.4 %
BOTH 22 30.9 %
TOTAL 68 100%
TABLE 8.14
INTERPRETATION
From the above pie chart we can interpret that 27 respondents that is 39.7 % think
that poor working capital management can lead to over capitalization.20
respondents that is 29.4 % think that poor working capital management can lead to
over trading. And last 30.9 % respondents that is 30.9 % think that both over
capitalization and over trading can lead to poor working capital.
82
FIG 8.15

RESPONSES
SBI BANK 31 45.6 %
ICICI BANK 3 32.4 %
OTHERS 14 22.1 %
TOTAL 68 100%
TABLE 8.15
INTERPRETATION : -
From the above pie chart we can interpret that 31 respondents that is 45.6
% think that SBI bank is good working capital . 22 respondents that is 32.4
% think that ICICI bank is good working capital .15 respondents that is 22.1
% think that other bank is good working capital .
83
FIG 8.16

RESPONDENTS
YES 58 83.8 %
NO 10 16.2 %
TOTAL 68 100%
TABLE 8.16
INTERPRETATION : -
From above pie chart we can interpret that 83.8 % respondents selected yes because
they think that cash position and bills receivables decide the liquidity of the
firm.16.2 % respondents selected no because they think that cash position and bills
receivable not decide the liquidity of the firm.
84
FIG 8.17

RESPONDENTS
PAID OUT OF PROFIT 36 51.5 %
PAID OUT OF 21 30.9 %

INCOME
PAID OUT OF LOAN 11 17.6 %
TOTAL 68 100%
TABLE 8.17
INTERPRETATION : -
1. From the above table we can interpret that 35 respondents that is 51.5 % have
selected paid out of profit.
2. 21 respondents that is 30.9 % have selected paid out of income.
3. 12 respondents that is 17.6 % have selected paid out of loan.
85
FIG 8.18
PARTICULAR NO. OF PERENTAGE ( % )

RESPONDENTS
2 OUT OF 5 21 29.4 %
3 OUT OF 5 22 32.4 %
4 OUT OF 5 16 23.5 %
5 OUT OF 5 9 14.7 %
TOTAL 68 100%
TABLE 8.18
INTERPRETATION : -
1. From the above pie chart, we can interpret that 29.4 % respondents have
selected 2 out of 5.
2. 32.4 % respondents have selected 3 out of 5.
86
FIG 8.19

RESPONDENTS
2 OUT OF 5 26 38.2 %
3 OUT OF 5 20 29.4 %
4 OUT OF 5 16 22.1 %
5 OUT OF 5 6 10.3 %
TOTAL 68 100%
TABLE 8.19
INTERPRTATION : -
1. From the above pie chart, we can interpret that 38.2 % respondents have
selected 2 out of 5.
87
CHAPTER : 9
9.1:- CONCULSION
The researchers focused at the financial performance of India's banking sector over the
last five years, from 2021 to2022. 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"
profitability, 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
Working capital management is important aspect of financial management. The study

of working capital management of State Bank of India has revealed that the current
ratio is in an increasing trend. The study has been conducted on working capital
management which will help the company to manage its working capital efficiently and
effectively.
Over all the company has good liquidity position and sufficient funds to repayment of
liabilities. Company has accepted conservative financial policy and thus maintaining
more current assets balance. Company is increasing sales volume per year which
supported to the company for sustain in the number one position in India.
From this research I found that the overall working capital (WC) of State Bank of India
is increased by more than 100 percent in the last three years.Which are a significant
trend and this trend is giving a good sound for the health of the company.
88
ICICI Bank has provided astounding promising services to its customers. Being a
private bank, the bank has earned tons of trust from its customers by following
customer-centric principles which helped the bank to gain a huge customer base across
the country.
Using technologies in the right way and at the right time and making banking facilities
so easy for customers by optimizing digital platforms, ICICI Bank took the lead from
all the other banks in the country.
The bank emerges with various financial and banking products and services that enable
it to develop its business seamlessly. ICICI Bank facilitates the banking services to not
only urban areas but also diversified it to rural areas across India. ICICI Bank is holding
a very powerful position in private banks across the country. The bank is also known
for fulfilling all the CSRs. ICICI Bank is following a subtle business model of banking
and marketing which helped it to become the best private bank in the country.
89
9.2:- FINDING
The research is conducted with the data of past three years. And from this
current years data the things that I have finds after the research done are:-
1) Working capital of the company was increasing and showing

positive working capital per year. It shows good liquidity position.
2) In the year 2021-2022the company's working capital of SBI bank

has increase 13,264 crore and ICICI bank 31.6 %
3) Positive working capital indicates that company has the ability of

payments of short terms liabilities.
4) Working capital increased because of increment in the current assets

is more than increase in the current liabilities.
5) The Company's current assets were always more than requirement it

affect on profitability of the company.
6) Current assets are more than current liabilities indicate that company
used long term funds for short term requirement, where long term
funds are most costly then short term funds.
90
7) Current assets components shows sundry debtors were the major
part in current assets it shows that the inefficient receivables
collection management.
91
9.3 :- SUGGESTIONS
The research is conducted with the data of past three years. However, better insight
could be obtained if the research is continued with the data for more number of years.
1) There should maintain proper management in inventory.
2) Current assets should not be exceeding over because it is increase the investment of
the company.
3) The Net Working Capital should be in a balance condition it should not be fluctuate
excessively.
All over company should manage the NWC of the company in such a way that it should
enhance the effectiveness and efficiency of the company's profitability.
92
9.4 :- RECOMMENDATION
Recommendation can be use by SBI and ICICI for the betterment increased of the firm,
after study and analysis of project report on study of working capital management. I
would like to recommend.
1. Company should raise funds through short term sources for short term requirement
of funds, which comparatively economical as compare to long term funds.
2. Company should take control on debtor's collection period which is major part of
current assets.
3. Company has to take control on cash balance because cash is nonearning assets and
increasing cost of funds.
Over all the company has good liquidity position and sufficient funds to repayment of
liabilities, but Company has accepted conservative financial policy to maintaining more
current assets balance.
93
BIBLIOGRAPHY
https://en.m.wikipedia.org/wiki/ICICI_Bank
https://www.slideshare.net/balekaushik/literature-review-on-working-capital-
35256391
https://www.scribd.com/doc/34646097/SBI-Priject-Working-Capital-Management
https://www.icicibank.com/blogs/current-account/working-capital-mistakes-to-avoid-
current-account
JOURNAL :-
o Study of SBI and ICICI Bank. 2(2), 12.
o Anon. n.d. "Price Earnings Ratio Formula, Examples and Guide

to P/E Ratio," Corporate
o Bansal, Rohit. 2014. "A Comparative Analysis of the Financial

Ratios of Selected Banks in the India for the Period of 2011-
2014." Research Journal of Finance and Accounting
o Vanlalzawna. 2018. "A Study of Financial Performance

Evaluation of Banks in India."
94
o Dissertation, Mizoram University. Chintala, B., & Kumar, G.
(2016). A Comparative Study on Financial Performance of
BOOKS
 Financial management by I .M PANDEY
95
APPENDIX
1) NAME :-
2) GENDER :-
 MALE
 FEMALE
3) QUALIFICATION :-
o UNDER GRADUATE
o POST GRADUATE
o OTHER
4) OCCUPATION :-
o HOUSEWIFE
o STUDENT
o EMPLOYEE
o PROFESSIONAL
5) WHAT IS YOUR CURRENT MONTHLY INCOME ?
96
o BELOW 10000
o 10000 - 50000
o 50000 ABOVE
6) WORKING CAPITAL FOR THE BANK IS CALCULATE
o WEEKLY
o MONTHLY
o QUARTERLY
o YEARLY
7) WORKING CAPITAL MANAGEMENT PLAY IMPORTANT

ROLE IN INCREASE
o PROFITABILITY
o LIQUIDITY
o BOTH
8) WORKING CAPITAL MANAGEMENT BE

OPTIMISED BY
o MANAGING CASH
o MANAGING BILL RECEIVABLE AND PAYABLE
o MANAGING DEBTORS AND CREDITORS
o ALL OF ABOVE
97
9) IN SBI AND ICICI BANK PROPORTION OF WORKING
CAPITAL COMPONENTS AFFECT THE EFFICIENCY OF
WORKING CAPITAL
o YES
o NO
10 ) WHICH WORKING CAPITAL IS POOR ?
o SBI BANK
o ICICI BANK
11) WHICH BANK YOU ARE INTERESTED TO INVEST IN

YOUR MONEY
o SBI BANK
o ICICI BANK
o Other
12) HAVE YOU EXPERIENCED WORKING CAPITAL

SHORTAGE ?
98
o YES
o NO
13 ) WORKING CAPITAL FINANCE IS PROVIDED AGAINST
o INVENTORIES
o MACHINERY
o ACCOUNT RECEIVABLE
14 ) FOR WORKING CAPITAL ASSESSMENT DOCUMENTS

PAPER REQUIRED ARE
o BALANCE SHEET
o PROFIT AND LOSS ACCOUNT
o BOTH
15 ) POOR WORKING CAPITAL MANAGEMENT CAN BE

LEAD TO
o OVER CAPITALISATION
o OVER TRADING
o BOTH
99
16 )WHICH BANK DO YOU THINK GOOD WORKING
CAPITAL ?
o SBI BANK
o ICICI BANK
o Other's
17 ) CASH POSITION AND BILL RECEIVABLE DECIDE THE

LIQUIDITY OF FIRM
o YES
o NO
18 ) WHAT DO YOU DO WITH DEBENTURE INTEREST ?
o PAID OUT OF PROFIT

o PAID OUT OF INCOME
o PAID OUT OF LOAN
100
19 ) RATE YOUR WORKING CAPITALISM MANAGEMENT
IN SBI BANK OUT OF 5
o 2 OUT OF 5
o 3 OUT OF 5
o 4 OUT OF 5
o 5 OUT OF 5
20 ) RATE YOUR WORKING CAPITALISM MANAGEMENT IN ICICI

BANK OUT OF 5
o 2 OUT OF 5
o 3 OUT OF 5
o 4 OUT OF 5
o 5 OUT OF 5
101
PLAGIARISM
102

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PROJECT REPORT ON

COMPARATIVE STUDY OF WORKING CAPITAL

UNIVERSITY OF MUMBAI FOR PARTIAL COMPLETION OF

THE DEGREE OF BACHELOR OF ACCOUNTING AND

UNDER THE FACULTY OF COMMERCE

SRUSHTI SANJAY BACHARE

UNDER THE GUIDANCE OF

BAL BHARATI’S M J PANCHOLIA COLLAGE OF COMMERCE

SWAMI VIVEKANAND MARG,

ACADEMIC YEAR: 2022-2023

COMPARATIVE STUDY OF WORKING CAPITAL

UNIVERSITY OF MUMBAI FOR PARTIAL COMPLETION OF

THE DEGREE OF BACHELOR OF ACCOUNTING AND

UNDER THE FACULTY OF COMMERCE

SRUSHTI SANJAY BACHARE

UNDER THE GUIDANCE OF

BAL BHARATI’S M J PANCHOLIA COLLAGE OF COMMERCE

SWAMI VIVEKANAND MARG,

ACADEMIC YEAR: 2022-2023

work titled “COMPARATIVE STUDY OF WORKING CAPITAL

Wherever reference has been made to previous works of others, it has

I am grateful to have the opportunity to express my heartfelt appreciation to all those

I would also like to express my gratitude to the vice-principal, VICE PRINCIPAL

Furthermore, I would like to acknowledge the contribution of my project guide, VICE

CHAPTER SR.NO PARTICULAR PG.NO.

1.1 WHAT IS WORKING CAPITAL

1.2 INTRODUCTION OF WORKING CAPITAL

1.3 IMPORTANCE OF WORKING CAPITAL

1.4 AN OVERVIEW OF THE INDIAN BANKING

1.5 PROFILE OF STATE BANK OF INDIA

1.6 PROFILE OF ICICI BANK

2 RESEARCH AND METHODOLOGY 9TO 12

2.1 OBJECTIVES OF METHODOLOGY

2.2 RESEARCH HYPOTHESIS

2.3 SCOPE OF STUDY

2.4 OBJECTIVES OF RESEARCH

2.5 RESEARCH DESIGN

2.6 TYPES OF RESEARCH DESIGN

3 OVERVIEW OF WORKING CAPITAL 13TO 18

3.1 WORKING CAPITAL DEFINATION

3.2 WORKING CAPITAL MANAGEMENT

4 STATE BANK OF INDIA 19TO 35

4.2 SIGNIFICANCE OF STUDY

4.3 ORGANIZATIONAL STRUCTURE

4.4 PRODUCT AND SERVICES

4.5 DIFFERENT SERVICES

4.6 THE PRSENT SITUATION OF BANK

4.7 ECONOMIC OVERVIEW

4.8 BANK PERFORMANCE

4.13 STUDY ON WORKING CAPITAL

5 INDUSTRIAL CREDIT AND 36 TO 50

5.2 ABOUT THIS REPORT

5.3 REPORTING BOUNDARY

5.4 REPORTING PERIODS

5.5 THE PRESENT SITUATION OF BANK

5.8 WORKING CAPITAL FINANCE

5.9 FACILITIES FROM ICICI BANK MANAGE