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1. Synopsis 2. Objective 3. Research methodology 4. Literature review 5. Company profile 6. Data presentation and analysis 7. Conclusion, limitation 8. Recommendation 9. Bibliography


I am honoured to express my gratitude to all the people who were always a great help to me in achieving the mile stone. I could have never completed this task without valuable contributions from my teachers and faculty. I express my heart full indebt ness and owe a deep sense of gratitude to all of them including my guide Dr. Angrish K. Agarwal. I am extremely thankful to Mr. Anil Chand for his valuable guidance throughout this project. Above all I extent my sincere thanks to all my colleagues and friends without whom it was never possible to complete this assignment


This project aims at the comparative analysis of public sector bank and private sector banks is a concept which is new and fast emerging in the world of banking where has

become the necessity in order for banks to survive in this competitive environment like public banks. Here for the research for public and private bank I take State bank of India and ICICI. Through this we can make a comparison which bank is most preferred for people for depositing their money and taking loans. Following the trade liberalization in 1991, the Indian economy embarked on a path or rapid growth of aggregate output. In particular, it witnesses a high growth rate of service sector output while that of industry was relatively muted. As a result, the share of services in GDP has come to resemble that of a high income country while its per capita income still remain that of a low income country. Further, we also observe a sharp increase in the rate growth of service sector trade after liberalization. In the research of data or information from 1970 to 1994. I find that it is high productive growth, especially in the service sector, rather than growth of trade in services which the primary factor is driving the high growth witnessed by the Indian service sector. The strong contribution of these service segments has helped India to maintain a healthy growth rate as service sectors contributes 63 percent in GDP of India. INDIAN BANKING SYSTEM Banking in India originated in the last decades of the 18th century. The oldest bank in existence in India is the State Bank of India, a government-owned bank that traces its origins back to June 1806 and that is the largest commercial bank in the country. Central banking is the responsibility of the Reserve Bank of India, which in 1935 formally took over these responsibilities from the then Imperial Bank of India, relegating it to commercial banking functions. After India's independence in 1947, the Reserve Bank was nationalized and given broader powers. In 1969 the government nationalized the 14 largest commercial banks; the government nationalized the six next largest in 1980. Currently, India has 96 scheduled commercial banks (SCBs) - 27 public sector banks (that is with the Government of India holding a stake), 31 private banks (these do not have government stake; they may be publicly listed and traded on stock exchanges) and 38 foreign banks. They have a combined network of over 53,000 branches and 17,000 ATMs. According to a report by ICRA Limited, a rating

agency, the public sector banks hold over 75 percent of total assets of the banking industry, with the private and foreign banks holding 18.2% and 6.5% respectively

STATE BANK OF INDIA State Bank of India (SBI) is the largest bank in India. The bank traces its ancestry to British India, through the Imperial Bank of India, to the founding in 1806 of the Bank of Calcutta, making it the oldest commercial bank in the Indian Subcontinent. The Government of India nationalised the Imperial Bank of India in 1955, with the Reserve Bank of India taking a 60% stake, and renamed it the State Bank of India. In 2008, the Government took over the stake held by the Reserve Bank of India. SBI provides a range of banking products through its vast network in India and overseas, including products aimed at NRIs. The State Bank Group, with over 16000 branches, has the largest branch network in India. With an asset base of $250 billion and $195 billion in deposits, it is a regional banking behemoth. It has a market share among Indian commercial banks of about 20% in deposits and advances, and SBI accounts for almost one-fifth of the nations loans. SBI has tried to reduce over-staffing by computerizing operations and Golden handshake schemes that led to a flight of its best and brightest managers. These managers took the retirement allowances and then went on to become senior managers in new private sector banks. The State bank of India is the 29th most reputed company in the world according to Forbes. State Bank of India is one of the Big Four Banks of India with ICICI Bank, Axis Bank HDFC Bank.

ICICI ICICI Bank (BSE: ICICI) (formerly Industrial Credit and Investment Corporation of India) is India's largest private sector bank by market capitalisation and second largest overall in terms of assets. Total assets of Rs. 3,562.28 billion (US$ 77 billion) at

December 31, 2009 and profit after tax Rs. 30.19 billion (US$ 648.8 million) for the nine months ended December 31, 2009. The Bank also has a network of 1,700+ branches (as on 31 March, 2010) and about 4,721 ATMs in India and presence in 18 countries, as well as some 24 million customers (at the end of July 2007). ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and specialised subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital and asset management. (These data are dynamic.) ICICI Bank is also the largest issuer of credit cards in India. ICICI Bank has got its equity shares listed on the stock exchanges at Kolkata and Vadodara, Mumbai and the National Stock Exchange of India Limited, and its ADRs on the New York Stock Exchange (NYSE). The Bank is expanding in overseas markets and has the largest international balance sheet among Indian banks. ICICI Bank now has wholly-owned subsidiaries, branches and representatives offices in 18 countries, including an offshore unit in Mumbai. This includes wholly owned subsidiaries in Canada, Russia and the UK (the subsidiary through which the HiSAVE savings brand is operated), offshore banking units in Bahrain and Singapore, an advisory branch in Dubai, branches in Belgium, Hong Kong and Sri Lanka, and representative offices in Bangladesh, China, Malaysia, Indonesia, South Africa, Thailand, the United Arab Emirates and USA. Overseas, the Bank is targeting the NRI (Non-Resident Indian) population in particular. My objective to make this report is make a comparison between public bank and private bank for this secondary data can be used and from that analysis should be made.


To find out the personal banking scheme of SBI and ICICI to find out the advantage of SBI over ICICI and vice-versa. To find out that which bank give loans at better rates.

To compare the balance sheet and profit and loss accounts of banks To know the difference between SBI and ICICI.


Research in common parlance refers to a search for knowledge. Once can also define research as a scientific and systematic search for pertinent information on a specific topic. In fact, research is an art of scientific investigation. The advanced learners dictionary of current English lays down the meaning of research as a careful investigation or inquiry especially through search for new facts in any branch of knowledge. Redman and Mory define research as a systematized effort to gain new knowledge. Some people consider research as a movement, a movement from known to unknown. It is actually a voyage of discovery. Research is an academic activity and as such the terms should be used in a technical sense. According to Clifford Woody research comprises defining and redefining problems, formulating hypothesis or suggested solutions, collecting, organizing and evaluating data, making deductions and reaching conclusions, and at last carefully testing the conclusions to determine whether they fit the formulating hypothesis. D.Slesinger and M. Stephenson in the Encyclopaedia of Social Sciences define research as the manipulation of things, concepts or symbols for the purpose of generalizing to extend, correct or verify knowledge, whether that knowledge aids in construction of theory or in the practice of an art. Research is, thus, an original contribution to the existing stock of knowledge making for its advancement. It is the persuit of truth with the help of study, observation, comparison and experiment.

TYPES OF RESEARCH Applied Research seeks the specific knowledge necessary to improve the treatment of a particular disease. Basic Biomedical Research is conducted to increase understanding of fundamental life processes, such as discovering the molecular structure of deoxyribonucleic acid (DNA) one-half of the genetic code of life or investigating the genetics of lipid disease. The AHA funds this type of research. Basic Research is a synonym for fundamental research, which is the study of life processes that are universal in their application to scientific knowledge. Clinical Research addresses important questions of normal function and disease using human subjects. Directed Research is conducted by an investigator in response to an outside request to explore a specific scientific area or question. Corporate or foundation donations tagged for research allow the AHA to sponsor such projects as the ASA-Bugher Foundation Centres for Stroke Prevention Research and the AHA-Jon Holden DeHaan Foundation Myogenesis Research Centres. Fundamental Research studies life processes that are universal in their application to scientific knowledge. Investigator-Initiated Research investigates a question or hypothesis that the researcher has defined. The AHA's publicly donated dollars are used to support this type of research. Outcomes Research focuses upon the end results of health care, the tangible and quantifiable manifestations of disease upon patients and society and the determinants of these outcomes. Population Health Research is the science and art of studying the distribution and determinants of health status as influenced by social, economic and physical environments, human biology, health policy and services and of preventing disease, prolonging life and promoting health at the population levels. Strategically Focused Research focuses on science areas that the Association has determined are important to achieving its mission and strategic objectives. Targeted Research is a synonym for directed research. Translational Research takes a result from basic or fundamental science and studies its applicability in the clinical or human situation. Another type of translational research

addresses the adoption of prevention and treatment strategies that have been demonstrated to be effective through clinical research in the care of patients and in population-based prevention of conditions such as heart disease and stroke RESEARCH PROCESS Before embarking on the details of research methodology and techniques, it seems appropriate to present a brief overview of the research process. Research process consists of series of actions or steps necessary to effectively carry out research and the desired sequencing of these steps. A brief description of the steps of research process is as:1. Formulating the research problem:- There are two types of research problem,

viz, those which relate to states of nature and those which relate to relationships between variables. At the outset of the researcher must single out the problem he wants to study, i.e., he must decide the general area of interest or aspect of a subjectmatter that he would like to inquire into. Initially the problem may be stated in a broad general way and then the ambiguities, if any, relating to the problem be resolved. Then, the feasibility of a particular solution has to be considered before a working formulation of the problem can be set up. The formulation of a general topic into a specific research problem, thus, constitutes the first step in a specific enquiry. Essentially two steps are involved in formulating the research problem, viz., understanding the problem thoroughly, and rephrasing the same into meaningful terms from an analytical point of view. 2. Extensive literature survey:- Once the problem is formulated, a brief summary

of it is should be written down. It is compulsory for a research worker writing a thesis for a Ph.D. degree to write a synopsis of the topic and submit it to the necessary committee or the research board for approval. At this juncture the researcher should undertake extensive literature survey connected with the problem. For this purpose, the abstracting and indexing journals, conference proceeding, government reports, books etc., must be tapped depending on the nature of the problem. In this process, it should be remembered that one source will lead to another. The earlier studies, if any which are similar to the study in hand should be carefully studied. A good library will be a great help to the researcher at this stage.


Development of working hypotheses:-After extensive literature survey,

researcher should state in clear terms the working hypothesis or hypotheses. Working hypothesis is tentative assumption made in order to draw out and test its logical or empirical consequences. As such the manner in which research hypotheses are developed is particularly important since they provide the focal point for research. They also affect the manner in which tests must be conducted in the analysis of data and indirectly the quality of data which is required for the analysis. In most types of research, the development of working hypothesis plays an important role. Hypothesis should be very specific and limited to the piece of research in hand because it has to be tested. 4. Preparing the research design:- The research having been formulated in clear cut

terms, the researcher will be required to prepare a research design, i.e., be will have to state the conceptual structure within which research would be conducted. The preparation of such a design facilitates research to be as efficient as possible yielding maximal information. In other words the function of research design is to provide for the collection of relevant evidence with minimal expenditure of effort, time and money. But how all these can be achieved depends mainly on the research purpose. 5. Determining the sample design: - All the items under consideration in any field

of inquiry constitute a universe or population. A complete enumeration of all the items in the population is known as a census enquiry. It can be presumed that in such an enquiry when all the items are covered no element of chance is left and highest accuracy is obtained. But in practice this may not be true. Not only this, census enquiry is not possible in practice under many circumstances. For example, blood testing is done only on sample basis. The researcher must decide the way of selecting a sample or what is popularly known as sample design. 6. Collection of data:- In dealing with any real life problem it is often found that

data at hand are inadequate, and hence, it becomes necessary to collect data that are appropriate. There are several ways of collecting the appropriate data which differ considerably in context of money costs, time and other resources at the disposal of the researcher. Data can be collected by any one or more of the ways:-


by observation . through personal interview. Through telephone interview. By mailing of questionnaires. Through schedules. Execution of the project:-Execution of the project is a very important step in the

research process. If the execution of the project proceeds on correct lines, the data to be collected would be adequate and dependable. The researcher should see that the project is executed in a systematic manner and in time. If the survey is to be conducted by means of structured questionnaires, data can be readily machine processed. In such a situation, questions as well as the possible answers may be coded. If the data are to be collected through interviewers, arrangements should be made for proper selection and training of the interviewers.


Analysis of data:- After the data have been collected, the researcher turns to the

task of analyzing them. The analyzing of data require a number of closely related operations such as establishment of categories, the application of these categories to raw data through coding, tabulation and then drawing statistical inferences. The unwieldy data should necessarily be condensed into a few manageable groups and tables for further analysis. Thus, researcher should classify the raw into some purposeful and usable categories.


Hypothesis testing :-After analyzing the data as stated above, the researcher is in

a position to test the hypotheses, if any, he had formulated earlier. Do the facts support the hypotheses or they happen to be contrary? This is the usual question which should be answered while testing hypotheses. Various tests, such as Chi square test, t-test, F-test, have been developed by statisticians for the purpose. The hypotheses may be tested through the use of one or more of such tests, depending upon the nature and object of research inquiry. 10. Generalization and interpretation:- If a hypothesis is tested and upheld several

times, it may be possible for the researcher to arrive at generalization, i.e., to build a theory. As a matter of fact, the real value of research lies in its ability to arrive at certain generalization. If the researcher had no hypothesis to start with, he might seek to explain his findings on the basis of some theory. It is known as interpretation. The process of interpretation may quite often trigger off new questions which in turn may lead to further researches. 11. Preparation of the report or the thesis:- Finally, the researcher has to prepare the

report of what has been done by him. Writing of report must be done with great care keeping in view the following:I. the II. III. The layout of the report should be as follows:-firstly the preliminary pages than main text and at the end the end matter. Report should be written in a concise and objective style in simple language Charts and illustrations in the main report should be used only if they present the more clearly and forcibly.

avoiding vague expressions such as it seems, there may be, and the like. information


A bank is a financial intermediary that accepts deposits and channels those deposits into lending activities. Banks are a fundamental component of the financial system, and are also active players in financial markets. The essential role of a bank is to connect those who have capital (such as investors or depositors), with those who seek capital (such as individuals wanting a loan, or businesses wanting to grow). Banking is generally a highly regulated industry, and government restrictions on financial activities by banks have varied over time and location. The current set of global standards is called Basel II. In some countries such as Germany, banks have historically owned major stakes in industrial corporations while in other countries such as the United States banks are prohibited from owning non-financial companies. In Japan, banks are usually the nexus of a cross-share holding entity known as the keiretsu. In France, banc assurance is prevalent, as most banks offer insurance services (and now real estate services) to their clients. The most recent trend has been the advance of universal banks, which attempt to offer their customers the full spectrum of financial services under the one roof. The oldest bank still in existence is Monte dei Paschi di Siena, headquartered in Siena, Italy, which has been operating continuously since 1472. Origin of the word The name bank derives from the Italian word banco "desk/bench", used during the Renaissance by Jewish Florentine bankers, who used to make their transactions above a desk covered by a green tablecloth. However, there are traces of banking activity even in times ancient , which indicates that the word 'bank' might not necessarily come from the word 'banco'. In fact, the word traces its origins back to the Ancient Roman Empire, where moneylenders would set up their stalls in the middle of enclosed courtyards called macella on a long bench called a bancu, from which the words banco and bank are

derived. As a moneychanger, the merchant at the bancu did not so much invest money as merely convert the foreign currency into the only legal tender in Romethat of the Imperial Mint. The earliest evidence of money-changing activity is depicted on a silver drachm coin from ancient Hellenic colony Trapezus on the Black Sea, modern Trabzon, c. 350 325 BC, presented in the British Museum in London. The coin shows a banker's table (trapeza) laden with coins, a pun on the name of the city. In fact, even today in Modern Greek the word Trapeza () means both a table and a bank.

Definition The definition of a bank varies from country to country. Under English common law, a banker is defined as a person who carries on the business of banking, which is specified as:

conducting current accounts for his customers paying cheques drawn on him, and collecting cheques for his customers.

In most English common law jurisdictions there is a Bills of Exchange Act that codifies the law in relation to negotiable instruments, including cheques, and this Act contains a statutory definition of the term banker: banker includes a body of persons, whether incorporated or not, who carry on the business of banking' (Section 2, Interpretation). Although this definition seems circular, it is actually functional, because it ensures that the legal basis for bank transactions such as cheques does not depend on how the bank is organised or regulated. The business of banking is in many English common law countries not defined by statute but by common law, the definition above. In other English common law

jurisdictions there are statutory definitions of the business of banking or banking business. When looking at these definitions it is important to keep in minds that they are defining the business of banking for the purposes of the legislation, and not necessarily in general. In particular, most of the definitions are from legislation that has the purposes of entry regulating and supervising banks rather than regulating the actual business of banking. However, in many cases the statutory definition closely mirrors the common law one. Examples of statutory definitions:

"banking business" means the business of receiving money on current or deposit account, paying and collecting cheques drawn by or paid in by customers, the making of advances to customers, and includes such other business as the Authority may prescribe for the purposes of this Act; (Banking Act (Singapore), Section 2, Interpretation).

"banking business" means the business of either or both of the following:

1. receiving from the general public money on current, deposit, savings or other similar account repayable on demand or within less than [3 months] ... or with a period of call or notice of less than that period; 2. paying or collecting cheques drawn by or paid in by customers Since the advent of EFTPOS (Electronic Funds Transfer at Point Of Sale), direct credit, direct debit and internet banking, the cheque has lost its primacy in most banking systems as a payment instrument. This has led legal theorists to suggest that the cheque based definition should be broadened to include financial institutions that conduct current accounts for customers and enable customers to pay and be paid by third parties, even if they do not pay and collect cheques.

Banking Standard activities Banks act as payment agents by conducting checking or current accounts for customers, paying cheques drawn by customers on the bank, and collecting cheques

deposited to customers' current accounts. Banks also enable customer payments via other payment methods such as telegraphic transfer, EFTPOS, and ATM. Banks borrow money by accepting funds deposited on current accounts, by accepting term deposits, and by issuing debt securities such as banknotes and bonds. Banks lend money by making advances to customers on current accounts, by making installment loans, and by investing in marketable debt securities and other forms of money lending. Banks provide almost all payment services, and a bank account is considered indispensable by most businesses, individuals and governments. Non-banks that provide payment services such as remittance companies are not normally considered an adequate substitute for having a bank account. Banks borrow most funds from households and non-financial businesses, and lend most funds to households and non-financial businesses, but non-bank lenders provide a significant and in many cases adequate substitute for bank loans, and money market funds, cash management trusts and other non-bank financial institutions in many cases provide an adequate substitute to banks for lending savings. Wider commercial role The commercial role of banks is not limited to banking, and includes:

issue of banknotes (promissory notes issued by a banker and payable to bearer on demand) processing of payments by way of telegraphic transfer, EFTPOS, internet banking or other means issuing bank drafts and bank cheques accepting money on term deposit lending money by way of overdraft, instalment loan or otherwise providing documentary and standby letters of credit (trade finance), guarantees, performance bonds, securities underwriting commitments and other forms of off-balance sheet exposures

safekeeping of documents and other items in safe deposit boxes

currency exchange

Acting as a 'financial supermarket' for the sale, distribution or brokerage, with or without advice, of insurance, unit trusts and similar financial products

Channels Banks offer many different channels to access their banking and other services:

A branch, banking centre or financial centre is a retail location where a bank or financial institution offers a wide array of face-to-face service to its customers.

ATM is a computerised telecommunications device that provides a financial institution's customers a method of financial transactions in a public space without the need for a human clerk or bank teller. Most banks now have more ATMs than branches, and ATMs are providing a wider range of services to a wider range of users. For example in Hong Kong, most ATMs enable anyone to deposit cash to any customer of the bank's account by feeding in the notes and entering the account number to be credited. Also, most ATMs enable card holders from other banks to get their account balance and withdraw cash, even if the card is issued by a foreign bank.

Mail is part of the postal system which itself is a system wherein written documents typically enclosed in envelopes, and also small packages containing other matter, are delivered to destinations around the world. This can be used to deposit cheques and to send orders to the bank to pay money to third parties. Banks also normally use mail to deliver periodic account statements to customers.

Telephone banking is a service provided by a financial institution which allows its customers to perform transactions over the telephone. This normally includes bill payments for bills from major billers (e.g. for electricity).

Online banking is a term used for performing transactions, payments etc. over the Internet through a bank, credit union or building society's secure website. Mobile banking is a method of using one's mobile phone to conduct simple banking transactions by remotely linking into a banking network. Video banking is a term used for performing banking transactions or professional banking consultations via a remote video and audio connection. Video banking can be performed via purpose built banking transaction machines (similar to an Automated teller machine), or via a videoconference enabled bank branch.

Products Retail

Savings account Cheque account Credit card Home loan Personal loan Business loan Insurance advisor Mutual fund


Project finance Capital raising (Equity / Debt / Hybrids)

Economic functions The economic functions of banks include: 1. issue of money, in the form of banknotes and current accounts subject to cheque or payment at the customer's order. These claims on banks can act as money because they are negotiable and/or repayable on demand, and hence

valued at par. They are effectively transferable by mere delivery, in the case of banknotes, or by drawing a cheque that the payee may bank or cash. 2. netting and settlement of payments banks act as both collection and paying agents for customers, participating in interbank clearing and settlement systems to collect, present, be presented with, and pay payment instruments. This enables banks to economise on reserves held for settlement of payments, since inward and outward payments offset each other. It also enables the offsetting of payment flows between geographical areas, reducing the cost of settlement between them. 3. Credit intermediation banks borrow and lend back-to-back on their own account as middle men. 4. Credit quality improvement banks lend money to ordinary commercial and personal borrowers (ordinary credit quality), but are high quality borrowers. The improvement comes from diversification of the bank's assets and capital which provides a buffer to absorb losses without defaulting on its obligations. However, banknotes and deposits are generally unsecured; if the bank gets into difficulty and pledges assets as security, to raise the funding it needs to continue to operate, this puts the note holders and depositors in an economically subordinated position. 5. Maturity transformation banks borrow more on demand debt and short term debt, but provide more long term loans. In other words, they borrow short and lend long. With a stronger credit quality than most other borrowers, banks can do this by aggregating issues (e.g. accepting deposits and issuing banknotes) and redemptions (e.g. withdrawals and redemptions of banknotes), maintaining reserves of cash, investing in marketable securities that can be readily converted to cash if needed, and raising replacement funding as needed from various sources (e.g. wholesale cash markets and securities markets).

Banking in India Banking in India originated in the last decades of the 18th century. The oldest bank in existence in India is the State Bank of India, a government-owned bank that traces its origins back to June 1806 and that is the largest commercial bank in the country. Central banking is the responsibility of the Reserve Bank of India, which in 1935 formally took over these responsibilities from the then Imperial Bank of India, relegating it to commercial banking functions. After India's independence in 1947, the Reserve Bank was nationalized and given broader powers. In 1969 the government nationalized the 14 largest commercial banks; the government nationalized the six next largest in 1980. Currently, India has 96 scheduled commercial banks (SCBs) - 27 public sector banks (that is with the Government of India holding a stake), 31 private banks (these do not have government stake; they may be publicly listed and traded on stock exchanges) and 38 foreign banks. They have a combined network of over 53,000 branches and 17,000 ATMs. According to a report by ICRA Limited, a rating agency, the public sector banks hold over 75 percent of total assets of the banking industry, with the private and foreign banks holding 18.2% and 6.5% respectively Early history Banking in India originated in the last decades of the 18th century. The first banks were The General Bank of India which started in 1786, and the Bank of Hindustan, both of which are now defunct. The oldest bank in existence in India is the State Bank of India, which originated in the Bank of Calcutta in June 1806, which almost immediately became the Bank of Bengal. This was one of the three presidency banks, the other two being the Bank of Bombay and the Bank of Madras, all three of which were established under charters from the British East India Company. For many years the Presidency banks acted as quasi-central banks, as did their successors. The three

banks merged in 1921 to form the Imperial Bank of India, which, upon India's independence, became the State Bank of India. Indian merchants in Calcutta established the Union Bank in 1839, but it failed in 1848 as a consequence of the economic crisis of 1848-49. The Allahabad Bank, established in 1865 and still functioning today, is the oldest Joint Stock bank in India. It was not the first though. That honour belongs to the Bank of Upper India, which was established in 1863, and which survived until 1913, when it failed, with some of its assets and liabilities being transferred to the Alliance Bank of Simla. When the American Civil War stopped the supply of cotton to Lancashire from the Confederate States, promoters opened banks to finance trading in Indian cotton. With large exposure to speculative ventures, most of the banks opened in India during that period failed. The depositors lost money and lost interest in keeping deposits with banks. Subsequently, banking in India remained the exclusive domain of Europeans for next several decades until the beginning of the 20th century. Foreign banks too started to arrive, particularly in Calcutta, in the 1860s. The Comptoire d'Escompte de Paris opened a branch in Calcutta in 1860, and another in Bombay in 1862; branches in Madras and Pondichery, then a French colony, followed. HSBC established itself in Bengal in 1869. Calcutta was the most active trading port in India, mainly due to the trade of the British Empire, and so became a banking centre. The Bank of Bengal, which later became the State Bank of India. The first entirely Indian joint stock bank was the Oudh Commercial Bank, established in 1881 in Faizabad. It failed in 1958. The next was the Punjab National Bank, established in Lahore in 1895, which has survived to the present and is now one of the largest banks in India. Around the turn of the 20th Century, the Indian economy was passing through a relative period of stability. Around five decades had elapsed since the Indian Mutiny, and the social, industrial and other infrastructure had improved. Indians had

established small banks, most of which served particular ethnic and religious communities. The presidency banks dominated banking in India but there were also some exchange banks and a number of Indian joint stock banks. All these banks operated in different segments of the economy. The exchange banks, mostly owned by Europeans, concentrated on financing foreign trade. Indian joint stock banks were generally under capitalized and lacked the experience and maturity to compete with the presidency and exchange banks. This segmentation let Lord Curzon to observe, "In respect of banking it seems we are behind the times. We are like some old fashioned sailing ship, divided by solid wooden bulkheads into separate and cumbersome compartments." The period between 1906 and 1911, saw the establishment of banks inspired by the Swadeshi movement. The Swadeshi movement inspired local businessmen and political figures to found banks of and for the Indian community. A number of banks established then have survived to the present such as Bank of India, Corporation Bank, Indian Bank, Bank of Baroda, Canara Bank and Central Bank of India. The fervour of Swadeshi movement lead to establishing of many private banks in Dakshina Kannada and Udupi district which were unified earlier and known by the name South Canara ( South Kanara ) district. Four nationalised banks started in this district and also a leading private sector bank. Hence undivided Dakshina Kannada district is known as "Cradle of Indian Banking".

From World War I to Independence

The period during the First World War (1914-1918) through the end of the Second World War (1939-1945), and two years thereafter until the independence of India were challenging for Indian banking. The years of the First World War were turbulent, and it took its toll with banks simply collapsing despite the Indian economy gaining indirect boost due to war-related economic activities. At least 94 banks in India failed between 1913 and 1918 as indicated in the following table: Number of banks Authorised capital Paid-up Capital that failed 12 42 11 13 9 7 (Rs. Lakhs) 274 710 56 231 76 209 (Rs. Lakhs) 35 109 5 4 25 1

Years 1913 1914 1915 1916 1917 1918

Post-independence The partition of India in 1947 adversely impacted the economies of Punjab and West Bengal, paralyzing banking activities for months. India's independence marked the end of a regime of the Laissez-faire for the Indian banking. The Government of India initiated measures to play an active role in the economic life of the nation, and the Industrial Policy Resolution adopted by the government in 1948 envisaged a mixed economy. This resulted into greater involvement of the state in different segments of the economy including banking and finance. The major steps to regulate banking included:

In 1948, the Reserve Bank of India, India's central banking authority, was nationalized, and it became an institution owned by the Government of India.

In 1949, the Banking Regulation Act was enacted which empowered the Reserve Bank of India (RBI) "to regulate, control, and inspect the banks in India."

The Banking Regulation Act also provided that no new bank or branch of an existing bank could be opened without a license from the RBI, and no two banks could have common directors.

However, despite these provisions, control and regulations, banks in India except the State Bank of India, continued to be owned and operated by private persons. This changed with the nationalisation of major banks in India on 19 July 1969.

Nationalisation By the 1960s, the Indian banking industry had become an important tool to facilitate the development of the Indian economy. At the same time, it had emerged as a large employer, and a debate had ensued about the possibility to nationalise the banking industry. Indira Gandhi, the-then Prime Minister of India expressed the intention of the GOI in the annual conference of the All India Congress Meeting in a paper entitled "Stray thoughts on Bank Nationalisation." The paper was received with positive enthusiasm. Thereafter, her move was swift and sudden, and the GOI issued an ordinance and nationalised the 14 largest commercial banks with effect from the midnight of July 19, 1969. Jayaprakash Narayan, a national leader of India, described the step as a "masterstroke of political sagacity." Within two weeks of the issue of the ordinance, the Parliament passed the Banking Companies (Acquisition and Transfer of Undertaking) Bill, and it received the presidential approval on 9 August 1969. A second dose of nationalization of 6 more commercial banks followed in 1980. The stated reason for the nationalization was to give the government more control of credit delivery. With the second dose of nationalization, the GOI controlled around 91% of the banking business of India. Later on, in the year 1993, the government merged

New Bank of India with Punjab National Bank. It was the only merger between nationalized banks and resulted in the reduction of the number of nationalised banks from 20 to 19. After this, until the 1990s, the nationalised banks grew at a pace of around 4%, closer to the average growth rate of the Indian economy. The nationalised banks were credited by some, including Home minister P. Chidambaram, to have helped the Indian economy withstand the global financial crisis of 2007-2009



The State Bank Of India, the countrys oldest bank and a premier in terms of balance sheet size, numbers of branches, market capitalization and profits is today going through a momentous phase of change and transformation the two hundred years old Public sector behemoth is today stirring out of its public sector legacy and moving with an ability to give the Private and foreign banks a run for their money. The origin of the SBI goes back to the first decade of the 19th century with the establishment of bank of Calcutta on June 2 1806. The bank is operating many businesses with strategic tie ups-Pension Funds, General insurance, Custodial services, private equity, mobile banking, point of sale merchant acquisition, Advisory services, structured product etc- each on of their initiatives having a huge potential for growth. It is also focusing at the top end of the market, on whole sale banking capabilities to provide Indias growing mid/large corporate with a complete array of products and services. It is consolidating is global treasury operations and entering into structured products and derivative instruments. Today, the bank is the largest provider of infrastructure debt and the largest arranger of external commercial borrowings in the country. It is only Indian bank to feature in the fortune 500 list. SBI have about 8500 of its own 10000 branches and anther 5100 branches of its associate banks, today it offers the largest banking network of the Indian customer. The bank is also in the process of providing complete payment solution to its clientele with its over 8500 ATMs. It presently has 52 foreign offices in 34 countries across the globe. With 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. The bank is also looking at opportunities to grow in size in India as well as internationally. It presently has 82 foreign offices in 32 countries across the globe. It has also 7 Subsidiaries in India - SBI Capital Markets, SBICAP Securities, SBI DFHI, SBI Factors, SBI Life and SBI Cards - forming a formidable group in the Indian

Banking scenario. It is in the process of raising capital for its growth and also consolidating its various holdings. Throughout all this change, the Bank is also attempting to change old mindsets, attitudes and take all employees together on this exciting road to Transformation. In a recently concluded mass internal communication programme termed Parivartan the Bank rolled out over 3300 two day workshops across the country and covered over 130,000 employees in a period of 100 days using about 400 Trainers, to drive home the message of Change and inclusiveness. The workshops fired the imagination of the employees with some other banks in India as well as other Public Sector Organizations seeking to emulate the Program. HISTORY The roots of the State Bank of India rest in the first decade of 19th century, when the Bank of Calcutta, later renamed the Bank of Bengal, was established on 2 June 1806. The Bank of Bengal and two other Presidency banks, namely, 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 the royal charters. These three banks received the exclusive right to issue paper currency in 1861 with the Paper Currency Act, a right they retained until the formation of the Reserve Bank of India. The Presidency banks amalgamated on 27 January 1921, and the reorganized banking entity took as its name Imperial Bank of India. The Imperial Bank of India continued to remain a joint stock company. Pursuant to the provisions of the State Bank of India Act (1955), the Reserve Bank of India, which is India's central bank, acquired a controlling interest in the Imperial Bank of India. On 30 April 1955 the Imperial Bank of India became the State Bank of India. The Govt. of India recently 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. In 1959 the Government passed the State Bank of India (Subsidiary Banks) Act, enabling the State Bank of India to take over eight former State-associated banks as its subsidiaries. On Sept 13, 2008, State Bank of Saurashtra, one of its Associate Banks, merged with State Bank of India.

SBI has acquired local banks in rescues. For instance, in 1985, it acquired Bank of Cochin in Kerala, which had 120 branches. SBI was the acquirer as its affiliate, State Bank of Travancore, already had an extensive network in Kerala. An important turning point in the history of State Bank of 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 take over 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 on 1 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 States -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.


The corporate centre of SBI is located in Mumbai. In order to cater to different functions, there are several other establishments in and outside Mumbai, apart from the corporate centre. The bank boasts of having as many as 14 local head offices and 57 Zonal Offices, located at major cities throughout India. It is recorded that SBI has about 10000 branches, well networked to cater to its customers throughout India. ATM Services SBI provides easy access to money to its customers through more than 8500 ATMs in India. The Bank also facilitates the free transaction of money at the ATMs of State Bank Group, which includes the ATMs of State Bank of India as well as the Associate Banks - State Bank of Bikaner & Jaipur, State Bank of Hyderabad, State Bank of Indore, etc. You may also transact money through SBI Commercial and International Bank Ltd by using the State Bank ATM-cum-Debit (Cash Plus) card. Subsidiaries The State Bank Group includes a network of eight banking subsidiaries and several non-banking subsidiaries. Through the establishments, it offers various services including merchant banking services, fund management, factoring services, primary dealership in government securities, credit cards and insurance. The eight banking subsidiaries are: State Bank of Bikaner and Jaipur (SBBJ) State Bank of Hyderabad (SBH) State Bank of India (SBI) State Bank of Indore (SBIR) State Bank of Mysore (SBM) State Bank of Patiala (SBP)

State Bank of Sarasota (SBS) State Bank of Travancore (SBT)

Products and Services Personal Banking SBI Term Deposits SBI Loan for Pensioners SBI Recurring Deposits Loan against Mortgage Of Property SBI Housing Loan against Shares & Debentures SBI Car Loan Rent plus Scheme SBI Educational Loan Medi-Plus Scheme

Other Services Agriculture/Rural Banking NRI Services ATM Services Demat Services Corporate Banking

Internet Banking Mobile Banking International Banking Safe Deposit Locker RBIEFT E-Pay E-Rail SBI Vishwa Yatra Foreign Travel Card Broking Services Gift Cheques

The CNN IBN, Network 18 recognized this momentous transformation journey, the State Bank of India is undertaking, and has awarded the prestigious Indian of the Year - Business, to its Chairman, Mr. O. P. Bhatt in January 2008

MUTUAL FUND Broking Services Gift Cheques

The CNN IBN, Network 18 recognized this momentous transformation journey, the LIFE INSURANCE Unit linked products: Pension products: Pure protection State Bank of India is undertaking, andProducts: protection cum saving products: Money back has awarded the prestigious Indian of the Year Scheme products: SBI life- SARAL ULIP protection plans: specialized term insurance: retirement solution: - Business, to its Chairman, Mr. O. P. Bhatt in January 2008 SBI life- swadhan (group): SBI life- dhanaraksha plus: SBI life- Grameen Shakti, Health products


SBI Mutual Fund is Indias largest bank sponsored mutual fund and has an enviable track record in judicious investments and consistent wealth creation. The fund traces its lineage to SBI Indias largest banking enterprise. The institution has grown immensely since its inception and today it is India's largest bank, patronised by over 80% of the top corporate houses of the country. SBI Mutual Fund is a joint venture between the State Bank of India and Society General Asset Management, one of the worlds leading fund management companies that manages over US$ 500 Billion worldwide. Mumbai, August 26, 2008 - SBI Life Insurance has achieved a unique distinction of ranking third globally in terms of number of Million Dollar Round Table (MDRT) members. Of the 40,000 SBI Life Insurance Advisors, 1,662 have qualified for the

prestigious MDRT membership. Among these, 124 qualified for Court of Table (COTs) and 20 for Top of Table (TOTs).

Management The bank has 14 directors on the Board and is responsible for the management of the Banks business. The board in addition to monitoring corporate performance also carries out functions such as approving the business plan, reviewing and approving the annual budgets and borrowing limits and fixing exposure limits. Mr. O. P. Bhatt is the Chairman of the bank. The five-year term of Mr. Bhatt will expire in March 2011. Prior to this appointment, Mr. Bhatt was Managing Director at State Bank of Travancore. Mr. Bhatt has more than 30 years of experience in the Indian banking industry and is seen as futuristic leader in his approach towards technology and customer service. Mr. Bhatt has had the best of foreign exposure in SBI. We believe that the appointment of Mr. Bhatt would be a key to SBIs future growth momentum. Mr. T S Bhattacharya is the Managing Director of the bank and known for his vast experience in the banking industry. Recently, the senior management of the bank has been broadened considerably. The positions of CFO and the head of treasury have been segregated and new heads for rural banking and for corporate development and new business banking have been appointed. The managements thrust on growth of the bank in terms of network and size would also ensure encouraging prospects in time to come.

ICICI BANK ICICI Group offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialised group companies, subsidiaries and affiliates in the areas of personal banking, investment banking, life and general insurance, venture capital and asset management. With a strong customer focus, the ICICI Group Companies have maintained and enhanced their leadership position in their respective sectors. ICICI Bank is India's second-largest bank with total assets of Rs. 3,793.01 billion (US$ 75 billion) at March 31, 2009 and profit after tax Rs. 37.58 billion for the year ended March 31, 2009. The Bank has a network of 1,451 branches and about 4,721 ATMs in India and presence in 18 countries. HITORY 1955: The Industrial Credit and Investment Corporation of India Limited (ICICI) incorporated at the initiative of the World Bank, the Government of India and representatives of Indian industry, with the objective of creating a development financial institution for providing medium-term and long-term project financing to Indian businesses. Mr.A.Ramaswami Mudaliar elected as the first Chairman of ICICI Limited. ICICI emerges as the major source of foreign currency loans to Indian industry. Besides funding from the World Bank and other multi-lateral agencies, ICICI was also among the first Indian companies to raise funds from international markets. 1956: ICICI declared its first dividend of 3.5% 1961: The first West German loan of DM 5 million from Kredianstalt obtained

1967: ICICI made its first debenture issue for Rs.6 crore, which was oversubscribed 1972: The second entity in India to set up merchant banking services 1977: ICICI sponsored the formation of Housing Development Finance Corporation. Managed its first equity public issue 1986: ICICI became the first Indian institution to receive ADB Loans. ICICI, along with UTI, set up Credit Rating Information Services of India Limited, India's first professional credit rating agency. ICICI promotes Shipping Credit and Investment Company of India Limited 1993: Promoted TDICI - India's first venture capital company 1994: ICICI Securities and Finance Company Limited in joint venture with J. P. Morgan set up 1996: ICICI Asset Management Company set up. ICICI Bank set up. ICICI Ltd became the first company in the Indian financial sector to raise GDR 2000: ICICI launched retail finance - car loans, house loans and loans for consumer durables. ICICI becomes the first Indian Company to list on the NYSE through an issue of American Depositary Shares

2001: ICICI Bank became the first commercial bank from India to list its stock on NYSE. ICICI Bank announces merger with Bank of Madura. The Boards of ICICI Ltd and ICICI Bank approved the merger of ICICI with ICICI Bank.

2002: ICICI Ltd merged with ICICI Bank Ltd to create India's second largest bank in terms of assets. ICICI assigned higher than sovereign rating by Moody's. : ICICI Bank launched India's first CDO (Collateralised Debt Obligation) Fund named Indian Corporate Collateralised Debt Obligation Fund (ICCDO Fund). "E Lobby", a self-service banking centre inaugurated in Pune. It was the first of its kind in India. ICICI Bank launched Private Banking. 1100-seat Call Centre set up in Hyderabad ICICI Bank Home Shoppe, the first-ever permanent aggregation and display of housing projects in the county, launched in Pune, ATM-on-Wheels, India's first mobile ATM, launched in Mumbai. 2003: The first Integrated Currency Management Centre launched in Pune. ICICI Bank announced the setting up of its first ever offshore branch in Singapore. The first offshore banking unit (OBU) at Seepz Special Economic Zone, Mumbai, launched. ICICI Bank's representative office inaugurated in Dubai. Representative office set up in China. ICICI Bank's UK subsidiary launched. India's first ever "Visa Mini Credit Card", a 43% smaller credit card in dimensions launched. ICICI Bank subsidiary set up in Canada. Temasek Holdings acquired 5.2% stake in ICICI Bank. ICICI Bank became the market leader in retail credit in India.

2005: ICICI Bank and CNBC TV 18 announced India's first ever awards recognising the achievements of SMEs, a pioneering initiative to encourage the contribution of Small and Medium Enterprises to the growth of Indian economy. ICICI Bank opened its 500th branch in India. ICICI Bank introduced partnership model wherein ICICI Bank would forge an alliance with existing micro finance institutions (MFIs). The MFI would undertake the promotional role of identifying, training and promoting the micro-finance clients and ICICI Bank would finance the clients directly on the recommendation of the MFI. ICICI Bank introduced 8-8 banking wherein all the branches of the Bank would remain open from 8a.m. to 8 p.m. from Monday to Saturday. ICICI Bank introduced the concept of floating rate for home loans in India. First rural branch and ATM launched in Uttar Pradesh at Delpandarwa, Hardoi. "Free for Life" credit cards launched wherein annual fees of all ICICI Bank Credit Cards were waived off. ICICI Bank and Visa jointly launched mChq - a revolutionary credit card on the mobile phone. Private Banking Masters 2005, a nationwide Golf tournament for high networth clients of the private banking division launched. This event is the largest domestic invitation amateur golf event conducted in India. First Indian company to make a simultaneous equity offering of $1.8 billion in India, the United States and Japan. Acquired Ivestitsionno Kreditny Bank of Russia. ICICI Bank became the largest bank in India in terms of its market capitalisation

2007: Introduced a new product - 'NRI smart save Deposits' - a unique fixed deposit scheme for non-residents Indians. Representative offices opened in Thailand, Indonesia and Malaysia. ICICI Bank became the largest retail player in the market to introduce a biometric enabled smart card that allows banking transactions to be conducted on the field. A low -cost solution, this became an effective delivery option for ICICI Bank's micro finance institution partners. Financial counselling centre Disha launched. Disha provides free credit counselling, financial planning and debt management services. Bhoomi puja conducted for a regional hub in Hyderabad, Andhra Pradesh. ICICI Bank's USD 2 billion 3-tranche international bond offering was the largest bond offering by an Indian bank. Sangli Bank amalgamated with ICICI Bank. ICICI Bank raised Rs 20,000 crore (approx $5 billion) from both domestic and international markets through a follow-on public offer. ICICI Bank's GBP 350 million international bond offering marked the inaugural deal in the sterling market from an Indian issuer and also the largest deal in the sterling market from Asia . Launched India's first ever jewellery card in association with jewellery major Gitanjali Group. ICICI Bank became the first bank in India to launch a premium credit card -- The Visa Signature Credit Card.

Foundation stone laid for a regional hub in Gandhinagar, Gujarat. Introduced SME Toolkit, an online resource centre, to help small and medium enterprises start, finance and grow their business. ICICI Bank signed a multi-tranche dual currency US$ 1.5 billion syndication loan agreement in Singapore. ICICI Bank became the first private bank in India to offer both floating and fixed rate on car loans, commercial vehicles loans, construction equipment loans and professional equipment loans. In a first of its kind, nation wide initiative to attract bright graduate students to pursue a career in banking, ICICI Bank launched the "Probationary Officer Programme". Launched Bank@home services for all savings and current a/c customers residing in India. ICICI Bank Eurasia LLC inaugurated its first branch at St Petersburg, Russia. 2008: ICICI Bank enters US, launches its first branch in New York. ICICI Bank enters Germany, opens its first branch in Frankfurt. ICICI Bank launched iMobile, a breakthrough innovation in banking where practically all internet banking transactions can now be simply done on mobile phones. ICICI Bank concluded India's largest ever securitisation transaction of a pool of retail loan assets aggregating to Rs. 48.96 billion (equivalent of USD 1.21 billion) in a multi-tranche issue backed by four different asset categories. It is also the largest deal in Asia (ex -Japan)in 2008 till date and the second largest deal in Asia (ex-Japan & Australia) since the beginning of 2007.







INVESTOR RELATIONS It is ICICI groups belief that all stakeholders should have access to complete information regarding its position to enable them to accurately assess its future potential. ICICI group regularly publishes information on its operation and various initiatives for its investors.

Annual reports Investor presentation Quarterly financial results Share price and ownership SEC filing Credit ratings Investor FAQs



CAPITAL AND LIABILITY TOTAL SHARE CAPITAL EQUITY SHARE CAPITAL SHARE APPLICATION MONEY PREFERENCE SHARE CAPITAL RESERVES REVALUATION RESERVES NET WORTH DEPOSITS BORROWINGS TOTAL DEBT OTHER LIABILITY AND PROVISION TOTAL LIABILITY ASSETS CASH AND BALANCE WITH RBI BALANCE WITH BANKS, MONEY ADVANCES INVESTMENTS GROSS BLOCK ACCUMULAYED DEPRECIATION NET BLOCK CAPITAL WORK IN PROGRESS OTHER ASSETS TOTAL ASSETS CONTINGENT LIABILITY BILLS FOR COLLECTION BOOK VALUE 29,076.43 22,892.27 337,336.49 149,148.88 8,061.92 5,385.01 2,676.91 141.95 25,292.31 566565.24 259,536.57 70418.15 594.69 51,534.62 15,931.72 416,768.20 189,501.27 8,988.35 5,849.13 3,139.22 234.26 44417.03 721526.32 736087.59 93652.89 776.48 55,546.17 48,857.63 542,503.20 275,953.96 10,403.06 6,828.65 3,574.41 263.44 37733.27 964432.08 614603.47 152654.06 912.73 MAR07 In rs cr. 526.30 526.30 0.00 0.00 30,772.26 0.00 31,298.56 435,521.09 39,703.34 475,224.43 60,042.26 566,565.25 MAR08 In rs cr. 631.47 631.47 0.00 0.00 48,401.19 0.00 49,032.66 537,403.94 51,727.41 589,131.35 83,362.30 721,526.31 MAR09 In rs cr. 634.88 634.80 0.00 0.00 57,312.82 0.00 57,947.70 742,073.13 53,713.68 795,786.81 110,697.57 964,432.08


INTEREST EARNED OTHER INCOME TOTAL INCOME EXPENDITURE INTEREST EXPENDED EMPLOYEE COST SELLING AND ADMINISTRATION EXP DEPRICIATION MISCELLANOUS EXP. PREOPERATIVE EXP. CAPITALISED OPERATING EXP. PROVISIONS AND CONTINGENCIES TOTAL EXP. 31,929.08 7,785.87 4,165.94 679.98 7,058.75 0.00 14,609.55 5,080.99 51,619.62 42,915.29 9,747.31 5,122.06 763.14 8,810.75 0.00 18,123.66 6,319.60 67,358.55 48,950.31 9,398.43 58,348.74 63,788.43 12,691.35 76,479.78


6,729.12 0.00 0.34 6,729.46 0.00 1,357.66 165.87 106.56 215.00 776.48 5,205.69 -0.10 1,523.53 0.34 6,729.46

9,121.23 0.00 0.34 9,121.57 0.00 1,841.15 248.03 143.67 290.00 912.73 7,032.04 0.01 2,089.18 0.34 9,121.57

CURRENT SENERIO SBI profit rises 46% in Q4 on higher other income

Kolkata, May 9 Riding on higher other income including profits from treasury operations, State Bank of India posted a 46 per cent rise in net profit at Rs 2,742 crore for the fourth quarter ended March 31, 2009, up from Rs 1,883 crore during the corresponding quarter of last year.

The bank made a profit of Rs 1,508 crore on account of sale of invest ments in the quarter ended March 31, 2009, according to its Chairman, Mr O.P. Bhatt. Other income for the quarter under consideration grew by 67 per cent at Rs 4,718 crore (Rs 2,817 crore)

The net profit for the year ended March 31, 2009 increased by 35.5 per cent at Rs 9,121 crore, against Rs 6,729 crore during the corresponding period last year. The board of directors at a meeting here on Saturday recommended a dividend of 290 per cent or Rs 29 per share (215 per cent) for the year under review.


banks in

treasury income 2008-09 increased by 171 per cent to Rs 2,566 crore on Account of profit on sale of investments, Mr Bhatt said.

Pillar of growth
Treasury would continue to be an important pillar of growth for the bank, he maintained. Historically, treasury was our residual business but this year treasury has registered outstanding growth. We are now trying to offer products at par with other multinational banks. Our fee-based income, which was earlier growing in single digits, also grew by 30 per cent in 2008-09; Mr Bhatt said explaining the reason for the growth in the banks net profit. Referring to the lower growth in net profit in 2008 -09 vis--vis 2007-08 when the growth was 48 per cent, he said, It was due to the rise in overhead costs due to branch expansion, liquidity overhang and the cost of carrying it and also on account of higher provisioning for salary revisions and for pensions. A 30 per cent growth in advances also contributed to the growth of net profit, he said. There has been a robust growth in our advances not only in terms of volumes but also in terms of income, he pointed out. Performance the banks core fee-based income

for the year ended March 2009 grew by 29 per cent to Rs 7,617 crore contributed by commission, exchange, loan processing fee and account maintenance charges. Other income increased by 46 per cent at Rs 12,691 crore (Rs 8,695 crore). Domestic deposits grew by 33 per cent at Rs 6,96,340 crore (Rs 5,22,589). Current Account and Savings Bank Account (CASA) deposits increased by 22 per cent to Rs 2,73,396 crore (Rs 2,23,627 crore) and term deposits grew by 41.5 per cent to Rs 4,22,944 crore (Rs 2,98,962 crore). The share of bulk deposits to total deposits declined to 10.81 per cent (14.13 per cent). Advances went up 30 per cent at Rs 5,48,540 crore (Rs 4,22,331 crore). The credit deposit ratio declined to 66.63 per cent (72.59 per cent). There has been an unprecedented flow of deposits since November 2008 to the tune of Rs 1,000 crore a day; on the other hand there has been a decline in credit off take. This has led to a decline in CD ratio, Mr Bhatt observed. The net interest margin (NIM) declined to 2.93 per cent (3.07 per cent). The huge growth in deposits, lesser growth and lower yield o n advances has put a pressure on our margins, Mr Bhatt said. The bank witnessed a two basis point dip in NIM in April 2009. However, with the cost of deposits coming down, the bank was hopeful of either maintaining or registering a slight improvement in its NIM, he said.

ICICI BANK CURENT Performance Review - Year ended March 31, 2009 Dividend of Rs. 11 per share proposed, same as previous year Profit before tax of Rs. 5,117 crore for the year ended March 31, 2009 compared to Rs. 5,056 crore for the year ended March 31, 2008 12% year-on-year increase in operating profit for the year ended March 31, 2009 14% year-on-year reduction in costs due to cost rationalization measures Current and savings account (CASA) ratio increased to 28.7% at March 31, 2009 from 26.1% at March 31, 2008 Increase of Rs. 5,286 crore in CASA deposits in quarter ended March 31, 2009

Strong capital adequacy ratio of 15.5% and Tier -1 capital adequacy ratio of 11.8% after proposed dividend; Tier-1 capital adequacy ratio highest among large Indian banks The Board of Directors of ICICI Bank Limited (NYSE: IBN) at its meeting held at Mumbai today, approved the audited accounts of the Bank for the year ended March 31, 2009.

Profit & loss account Profit before tax for the year ended March 31, 2009 (FY2009) was Rs.5, 117 crore (US$ 1,009 million), compared to Rs. 5,056 crore (US$997 million) for the year ended March 31, 2008 (FY2008). Profit after tax for FY2009 was Rs. 3,758 crore (US$ 741 million ) compared to Rs. 4,158 crore (US$ 820 million) for FY2008 due to the higher effective tax rate on account of lower proportion of income taxable as dividends and capital gains. Net interest income increased 15% from Rs. 7,304 crore (US$ 1,440million) for FY2008 to Rs. 8,367 crore (US$ 1,650 million) for FY2009. While the advances declined marginally year -on-year, the net interest income increased due to improvement in net interest margin from 2.2% in FY2008 to 2.4% in FY2009. Operating expenses (including direct marketing agency expenses) decreased 14% to Rs. 6,835 crore (US$ 1,348 million) in FY2009 from Rs. 7,972 crore (US$ 1,572 million) in FY2008. The cost/average asset ratio for FY2009 was 1.8% compared to 2.2% for FY2008. Profit before tax for the quarter ended March 31, 2009 (Q4 -2009) was Rs. 1,071 crore (US$ 211 million) compared to Rs. 1,343 crore (US$265 million) for the quarter ended March 31, 2008 (Q4-2008),primarily due to lower level of fee income at Rs. 1,343 crore (US$ 265 million) in Q4-2009 compared to Rs. 1,928 crore (US$ 380million) in Q4 -2008, partly offset by lower operating expenses and higher net interest income. The lower level of fee income was due to reduced investment and acquisition financing activity in the corporate sector and lower level of fees from distribution of retail financial products, reflecting the adverse conditions in global and Indian financial markets.

Profit after tax for Q4-2009 was Rs. 744 crore (US$ 147 million) compared to Rs. 1,150 crore (US$ 227 million) for Q4 -2008.

BALANCE SHEET During the year, the Bank has pursued a strategy of prioritizing capital conservation, liquidity management and risk containment given the challenging economic environment. This is reflected in the Banks strong capital adequacy and its focus on reducing its wholesale term deposit base and increasing its CASA ratio. The Bank is maintaining excess liquidity on an ongoing basis. The Bank has also placed strong emphasis on efficiency improvement and cost rationalization. The Bank continues to invest in expansion of its branch network to enhance its deposit fran chise and create an integrated distribution network for both asset and liability products. In line with the above strategy, the total deposits of the Bank were Rs.218,348 crore (US$43 billion) at March 31, 2009, compared to Rs.244,431 crore (US$ 48.2 billion) at March 31, 2008. The reduction in term deposits by Rs. 24,970 crore (US$ 4.9 billion) was primarily due to the Banks conscious strategy of paying off wholesale deposits. During Q4-2009, total deposits increased by Rs. 9,283 crore (US$ 1.8 billi on), of which Rs. 5,286 crore (US$ 1.0 billion), or about 57%, was in the form of CASA deposits. The CASA ratio improved to 28.7% of total deposits at March 31, 2009 from 26.1% at March 31, 2008. The branch network of the Bank has increased from 755 branches at March 31, 2007 to 1,438 branches at April 24, 2009. The Bank is also in the process of opening 580 new branches which would expand the branch network to about 2,000 branches, giving the Bank a wide distribution reach in the country. In line with the strategy of prioritizing capital conservation and risk containment, the loan book of the Bank decreased marginally to Rs.218,311 crore (US$ 43.0 billion) at March 31, 2009 from Rs. 225,616 crore(US$ 44. 5 billion) at March 31, 2008. Capital adequacy The Banks capital adequacy at March 31, 2009 as per Reserve Bank of Indias revised guidelines on Basel II norms was 15.5% and Tier -1 capital adequacy was 11.8%, well above RBIs requirement of total capital adequacy of 9.0% and Tier-1 capital adequacy of 6.0%. The above capital adequacy takes into account the impact of dividend recommended by the Board.

ASSET QUALITY At March 31, 2009, the Banks net non -performing asset ratio was 1.96%.During the year the Bank restructured loans aggregating to Rs. 1,115crore (US$ 220 million). Dividend on equity shares The Board has recommended a dividend of Rs. 11 per equity share(equivalent to US$ 0.43 per ADS) for FY2009. The declaration and payment of dividend is subject to requisite approvals. The record/book closure dates will be announced in due course. OVERSEAS BANKING SUBSIDAIRIES ICICI Bank Canada saw an increase of about CAD 1.75 billion in term deposits during FY2009 while its customer accounts increased from about 200,000 at March 31, 2008 to over 280,000 at March 31, 2009. ICICI Bank Canada continued to maintain liquidity of about CAD 850.0 million. ICICI Bank Canadas profit after tax for FY2009 was CAD 33.9 million. ICICI Bank Canadas capital position continued to be strong with a capital adequacy ratio of 19.9% at March 31, 2009.ICICI Bank UK saw an increase of about USD 1.80 billion in retail term deposits during FY2009 due to which the proportion of retail term deposits in total deposits increased from 16% at March 31, 2008 to 58% at March 31, 2009. ICICI Bank UKs customer base increased from about 210,000 at March 31, 2008 to over 310,000 customers at March 31, 2009.ICICI Bank UK continued to maintain liquidity of a bout USD 1.0 billion. After accounting for the gains on buyback of bonds and mark -to-market and impairment provisions on the investment portfolio, ICICI Bank UKs profit after tax for FY2009 was USD 6.8 million. ICICI Bank UKs capital position continued to be strong with a capital adequacy ratio of 18.4% at March 31, 2009.



MAR.31 2008
46,470 1,113 45,375 350 244,431 26.1% 86,399 22,145 399,795

MAR.31 2009
49,533 1,113 48,420 350 218,348 28.7% 92,805 18,265 379,301

CASH AND BANK BALANCE ADVANCES INVESTMENTS FIXED AND OTHER ASSETS TOTAL 38,041 225,616 111,454 24,684 399,795 29,966 218,311 103,058 27,966 379,301



8,367 7,604 6,524 637 214


Home loan Up to 5 years 0 30,00,000 30,00,000 5 to15 years 0 30,00,000 30,00,000 Up to 15 years 0 30,00,000 30,00,000 Medi-Plus loan 50,000 50,000 50,000 30,00,000 75,00,000 75,00,000 1,00,000 2,00,000 1,00,000 11.00% 12.25% 12.50% 14.50% 30,00,000 75,00,000 75,00,000 10.75% 12.00% 12.00% 30,00,000 75,00,000 75,00,000 10.50% 11.75% 11.75%

Availability of sufficient, regular and continuous source of income for servicing the loan repayment. Age 18-60 years

Equitable mortgage of the property or Other tangible security of adequate value like NSCs, Life Insurance policies etc., if the property cannot be mortgaged

As per bank's extant instructions.

Govt emp. From 10 years self-employed professional employee/agent (income>3lakhs)


Type Min. Personal loan Education loan -

Amount Max. 1,500000 4,00,000

Rate of interest



Nil For all 10-12% Tangible collateral security suitable third party guarantee

Graduation courses Post graduation courses Professional courses



Other courses approved by UGC/Government/AICTE e

4,00,000 Car loan -

7,50,000 15,00,000 11-13% As per bank's extant instructions. person having a income >1,00,000

Home loan



Availability of sufficient, regular and continuous source of income for servicing the loan repayment.

Equitable mortgage of the property or Other tangible security of adequate value like NSCs, Life Insurance policies etc., if the property cannot be mortgaged


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 1 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.

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. State bank of India has vast experience in the field of SME (Small and Medium Enterprises) 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 Centers 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.

Five reasons why we currently prefer SBI over ICICI

Reason #1 - Stronger CASA base CASA franchise of 42% provides comfort on margin sustainability for SBI. Though CASA for ICICI will also improve from the current 27%, we believe

SBIs liability franchise will strengthen further with the opening of ~2,000 branches in FY09.

Reason #2 Asset-liability match of SBI is better

SBI has a better asset-liability match, with 60% of liabilities of more than 1ICICI has 43% of its liabilities with more than 1-year maturity, while ~61% of

year maturity, while ~71% of assets have more than 1-year maturity. assets have more than 1-year maturity.

Reason #3- SBI has more diversified loan book While asset quality risks persist for both banks, SBIs loan

book is well diversified across a variety of segments; ICICIs loan book is still skewed towards retail. According to our analysis, over the next 18 months the retail segment is likely to be more vulnerable than the corporate segment.

Reason #4 - Market share gain in favour of SBI SBI will continue to gain market share in both advances and deposits at ICICIs expense due to the latters strategy of going slow. Advances growth for SBI as at Q1FY09 was 28% versus 13% for ICICI. Deposit growth for SBI was at 25%, while for ICICI it was 2% as at Q1FY09.

Reason #5 - Return ratios for SBI are better SBI is trading at 0.94x FY10E adjusted book, while ICICI is trading at 1.0x FY10E adjusted book (assuming value of subsidiaries for SBI at INR 301 and for ICICI at INR 283 on FY10E basis). ROE for ICICI is expected to be in the range of 8-10% in FY09-10E, while that of SBI will be in the range of 14-16%.

Key risks SBIs low provisioning coverage (44%) will lead to higher provisioning cost in FY10E, considering the aggressive balance sheet growth. For ICICI, the expectation of bad asset quality is priced in and further negative surprises look unlikely. Like any other PSU bank, the bulk of SBIs loan origination happens through branches where underwriting standards are stricter, unlike the DSA model that ICICI follows. Hence, while we expect NPAs to increase for SBI in FY10E and FY11E, we do not expect SBI to go through a similar experience as ICICI. Also, revised loan waiver guidelines could keep SBIs Q2FY09 profits muted due to higher provision requirement.

The gap between SBI and the rest of the bank is so wide that SBI comes out as number one on almost all counts. This includes assets, branch network, ATM network, number of employees, and size of profits. The only place that ICICI Bank has been able to upset the monolith has been in the area of market capitalization. One reason why SBI has lagged in market cap despite its size has been its inability to unlock value from its various businesses. However, there are signs that this is changing and the bank is making attempts to realize the value of its investments in the life insurance and asset management business. SBI and ICICI are both Indias largest banks. Their growth means Indias growth. And by this competition customers will be benefited and Indian economy will get a boost.

FOR SBI The risks that could ensue to SBI in time to come are as under: SBI is currently operating at a lowest CAR. Insufficient capital may restrict the growth prospects of the bank going forward. Stiff competition, especially in the retail segment, could impact retail growth of SBI and hence slowdown in earnings growth. Contribution of retail credit to total bank credit stood at 26%. Significant thrust on growing retail book poses higher credit risk to the bank. Delay in technology upgradation could result in loss of market shares. Management indicated a likely pension shortfall on account of AS -15 to be close to Rs50bn. Slow down in domestic economy would pose a concern over credit off -take thereby impacting earnings growth.

FOR ICICI 1) Competition: ICICI Bank is facing tight competition locally as well as Internationally. Bank like CITI Bank, HSBC, ABM, Standered Chartered, HDF C also provide equivalent facilities like ICICI do and also ICICI do not have consistency in its international operation. 2) Net Services: ICICI Bank provides all kind of services on-line. There can be Easy access to the e-mail ids of the customers through wrong people. The Confidential information of the customers can be leaked easily through the e Mail ids. 3) Decentralized Management: Each branch manager is given the authority of taking decisions in their respective branches. The decisions made by different managers are diverse and any one wrong decision can laid to heavy losses to the bank. 4) No Proper Facilities to Uneducated customers: ICICI Bank provides all services through electronic computerized machines. This creates problems to the less educated people. But this threat falls in the 4th quadrant so its negligible. T he company can avoid this threat.


More flexible requirement given by this bank. Creating an efficient and effective organization. This live project topic gives opportunity to know about various loan schemes

provided by the bank. The study shows all the important aspects of Bank loan schemes & how this

affects to current financial trends. It also describes the core features of borrowers as well as bankers for financing

loan which is a complex process.

FOR SBI The growth for SBI in the coming years is likely to be fueled by the following factors: Continued effort to increase low cost deposit would ensure improvement in NIMs and hence earnings. Growing retail & SMEs thrust would lead to higher business growth. Strong economic growth would generate higher demand for funds pursuant to higher corporate demand for credit on account of capacity expansion.

FOR ICICI 1) Bank -Insurance services: The bank should also provide insurance services. That means the bank can have a tie-up with an insurance company. The bank Will advertise & promote the different policies introduced by the insurance Company & convince their customers to buy insurance policies. 2) Increase in percentage of Returns on increase: The bank should provide Higher returns on deposits in comparison of the present situation. This will also upto large extent help the bank earn profits & popularity. 3) Recruit professionally guided students: Bank & Insurance is a special non-aid Course where the students specialize in the functioning & services of the bank & also is knowledge about various tax policies. The bank can recruit these students through tie-ups with colleges. Such students will surely prove as an asset to the bank. 4) Associate with social cause: T he bank can also associate itself with social causes like providing relief aid patients, funding towards natural calamities. But this falls in the 4th quadrant so the bank should neglect it.

BIBLOGRAPHY Secondary data: Internet website:

www.Google.com www.Statebankofindia.com www.Icicibank.com