ICICI Bank v/s SBI

Presented ByRohan Jain (406) Kanika Khilnani (408) Devika Prasad (411) Priya Sahay (413)

ICICI Bank
Indias largest private sector bank by market capitalization and second largest overall in terms of assets. India's second-largest bank with total assets of Rs. 3,793.01 billion and profit after tax Rs. 37.58 billion for the year ended March 2009.

The Bank has a network of 1,646 branches and about 4,883 ATMs in India and presence in 18 countries (as on February 11, 2010) as well as some 24 million customers (at the end of July 2007).
ICICI Bank is also the largest issuer of credit cards in India. ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and the National Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE).

Source: moneycontrol.com (19.02.10)

 ''b2- Branch- free Banking'' is designed to offer seamless information

through a single interface to facilitate banking transactions over the internet. It is a unique direct bank access, which will empower customers to manage all their finances online.

 InstaBanking- makes banking simpler, faster, more convenient. Through these 5 great channels - Internet Banking, Mobile Banking, ICICI Bank ATMs, Instant Voice Response (IVR) Banking and iMobile - you can do your day today banking anytime, anywhere.

Izone: A unique interactive experience, this is a first for any banking website in the world. You can now deposit or withdraw cash, open fixed deposits and conduct many more real banking transactions in i-Zone. Take a leisurely tour and enjoy the warmth of our virtual staff without getting away from your desktop.

TV Banking: This pioneering initiative now enables you to get information regarding loans, accounts, deposits and a lot more while you're watching that exciting cricket match or your favorite sitcom. Quite certainly, TV Banking has revolutionised banking by bringing it right into your living room.

PERFORMANCE PARAMETERS

SBI
State Bank of India (SBI) is the largest bank in India. The bank traces its ancestry back from 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 GOI nationalized the Imperial Bank of India in 1955 with the RBI 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.

CONTD.
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. It is the largest provider of infrastructure debt and the largest arranger of external commercial borrowings in the country. With 11,448 branches and a further 6500+ associate bank branches, the SBI has extensive coverage. State Bank of India has electronically networked all of its branches under Core Banking System (CBS).

The bank has one of the largest ATM networks in the region, with more than 9000 ATMs across India and other electronic channels such as Internet banking, debit cards, mobile banking, etc.

Source: moneycontrol.com (19.02.10)

NEW SERVICES
Paying utility bills at onlinesbi. E-rail reservation service using SBI accounts. MF investments handled through SBI a/c. SBI e-tax VISA Money transfer Use your 3-in-1 account to trade online Loyalty rewards Net banking for visually challenged

PERFORMANCE PARAMETERS

2007-08

2008-09

% change

E.P.S

126.62

143.77

13.54

Balance Sheet Ratios

SBI BALANCE SHEET

ICICI BALANCE SHEET

Comparison

Profitability Ratios

Net Profit Margin

Return on Net Worth

Return on Assets

Asset Liability Management in banks

Function of ALM: to measure and control three levels of financial risk
Interest Rate Risk (the pricing difference between loans and deposits) Credit Risk (the probability of default) Liquidity Risk (occurring when loans and deposits have different maturities)

Managing Net Interest Margin

ALM in SBI
The Asset Liability Management Committee (ALCO) Market Related Funds Transfer Pricing (MRFTP) Stressed Assets Management Group (SAMG) NPA Management

ALM in ICICI
Asset Liability Management Committee (ALCO) Structural Rate Risk Management Group (SRRMG) Risk measurement and reporting framework Hedging policy NPA Management

SWOT analysis-SBI
Strengths
Brand Name Market Leader Wide Distribution Network Diversified Portfolio Government Owned Low Transition Costs

Opportunities
Merger of associate banks with SBI Additional 2000 branches and 3000 ATMs Increasing trade and business relations

Weakness
Hierarchical management structure of the bank Non performing assets (NPAs) Modernisation

Threats
Advent of MNC banks Consumer expectations Employee Strike Private banks venturing into the rural and semi-urban sector

SWOT analysis-ICICI
Brand Name Market Share Huge Network Diversified Portfolio Salary Account Working Hours Treasury Management Aggressive Marketing Technology

Strengths

Opportunities
New IT & ITES Companies Dissatisfied Customers of Other Banks Remittances Business advising for smaller Players

Weakness
Transaction Cost Focus on High end customers Defensive Approach in lending Little Presence outside India Poor customer Care/ service

Threats
Advent of MNC banks Dissatisfied Customers Ever improving nationalized banks

Conclusion