capstone project on banking

Chapter: 1

INTRODUCTION

1.1 Background of CP:

Capstone project is included in the curriculum for making the students

aware about the working of the industry and correlating the theoretical

concepts that we have studied in BBA. It is an effort to know how the

theoretical concepts are really applicable in the industries.

In our project we will try to find how the companies through the market

research make the required changes in the services and how the

acceptance of the services increases, The project is based on the data

that is been collected from different sources and a primary survey is

conducted to support the project findings. The topic on which this project

is based relates the customer satisfaction towards the basic

requirements of the customers. We have covered our objective as

‘customer behavior’ from the services they used from different banks.

This project consists market research values of the similar services in

existing market

1.2 Rational of the study :

Capstone project is about managing the resources to collect the

consumer’s review towards the services they used from banks here at

Gandhinagar.The study is all about what the common people prefers the

most and their satisfaction and dissatisfaction from such competitive

banks available and their behavior on the retail service from different

banks.

B.P. COLLEGE OF BUSINESS ADMINISTRATION, TY BBA/SEM-VI 1

Our project aims at gain the information which of the services most

people prefer. This project targets all the people in the society viz. rich

people, middle class and poor people. As a part of our business

management study students we are required to make familiar with the

corporate field competition there in and why and how certain banks

dominating the market. By visiting personally banks and approaching the

customers’ i.e. actual users of the service we will try to find the answers

to these questions. Survey carried out by us the management students

will definitely help to sharp knowledge for the subject chosen by us as

well as assists market research. Eventually if required during the actual

job when assigned for survey in the market we can easily draft our

findings by such previous experience. Whenever we are in job we will be

able to direct the management by analyzing survey data to increase sell

of certain services.

Data collected by the survey is much more essential to form strong

platform for services in the market. By personal meeting with the actual

users we could know people preference for certain branded outlets

services. We will try to find out about the choice of the people as well as

what they are thinking about the services. These services having

perishable life, prompt decision is much more essential for collection and

disposal thereof, otherwise clients would be dissatisfied having nearest

expiry. Each and every service in market is required to be based on

quality control. By this study, we will try to find out what kinds of services

arechosen by customers. These findings would be helpful for managers,

market researchers and consultants for future plans and projects.


Research and Methodology :

1.3 OBJECTIVE :

To get knowledge about banking industry

The major players in private and public sector.

Analysis of different ratios of each private and public bank. (Indian

bank, SBI, ICICI,AXIS)

Our objective is to make comparative study of financial

performance of Private and Public sector Bank.

1.4 METODOLOGY:

The traditional set of ratios like Gross Profit Ratio , Stock

Turnover Ratio , Debtors Ratio , Net Profit Ratio , Credit Ratio

etc. are considered to study the Financial Performance of Banks.

We have tried to study the performance of banks by applying

C.A.M.E.L. Model.

This model analyses the banks various parameters like Capital

Adequacy, Asset Quality, Management, Earnings and Liquidity.

A different sets of ratios under C.A.M.E.L. model have been used.


1.5 Chapterlization skills

Ch-1 Introduction

The first chapter of this project is Introduction about the banking sector both public sector and private sector also include the back ground of cp, Rational study. We also maintion the objective of the Capstone project and how many data sources and methodology are available and also show the history of the modern banking in india.

Ch-2 Structure of banking system

The second Chapter about the Structure of Banking System in India. Include of RBI, schedule bank ,non schedule bank etc. and banking system like public sector, private sector bank. Include all of all four Banks , branches, service, key data, other services, chenal etc.

Ch-3 C.A.M.L Modal

This chapter is about the C.A.M.E.L model is include the overall financial condition of a bank and also ability of the management to need for additional capital C.A.M.E.L Modal Include the capital Adequancy , Assets Quality management , earning , liquidity.

Ch-4 Ratio anaylisis

In this chapter we have to ratio analysis of performance of business on C.A.M.E.L modal include of the advances to Assets ratio , total investment to total assets ratio etc. and compare to all four banking in both sector.

Ch-5 Findings

Findings chapter include the capital adequancy ratio , assets quality parameter, management efficiency parameter, liquidity parameter ,erning they all are include and look position of all four banks in the different stage.


Ch-6 Conclusion

In the Conclusion we have to analyzed the Report of all the four banks. State bank of india, Bank of india , ICICI , Axis bank . from that analysis we wish to conclude that all four Banks competitive of each other.

Ch-7 Bibliography

In the last this chapter we have include and write the name of the books for the helps of this project and also write the website name and other sources of the data collation for help full this banking project.

1.6 Limitations:

Because of shortage of time, we could not get all information of

every bank.

It was too much critical to get information from bank customers.


Introduction To Banking Sector

History of Modern Banking in India:

In the first half of the nineteenth century, the east India Company

established three banks. The bank of Bengal in 1809, the bank of

Bombay in 1840, and the bank of Madras in 1843, these three banks,

also known as presidency banks were subsequently amalgamated and

the imperial bank of India was established in 1921. The Imperial Bank of

India was nationalized in 1955 by the State Bank.

Definition of Bank: The oxford Dictionary defines a bank as “an establishment for the

custody of money, which it pays out on a customer’s order.” Since it

ignores the most important function of a bank is of creating money or

creating credit. We can define bank as an institution whose debts (bank

deposits) are widely accepted in settlement of other people’s debts to

each other. The banker’s business is then, to take debts of other people

to offer his own in exchange and thereby to create money.

The Banking Companies act, 1949 as one “ which transacts

the business of banking which means the accepting , for the purpose of

lending or investment, of deposits of money from public, repayable on

demand or otherwise and withdraw able by cheque, draft, order, or

otherwise.


Chapter - 2

Structure of banking system in India:


Reserve Bank of India

Non-Scheduled BankScheduled Bank

Commercial BankCentral Co-operative Banks & Primary Credit Societies

Commercial Bank

State Co- Operative Bank

Foreign Bank Indian Bank

Public Sector BankPrivate Sector Bank

SBI and Subsidiaries Banks

Regional Rural BankOther Nationalized Bank

Banking system:

1. Public sector Bank :

Banking system in India is dominated by nationalized banks. The

nationalization of 14 privately owned banks in India took place on 19 th of

July 1969 by Mrs. Indira Gandhi the then prime minister, with an another

installment of nationalization of 6 banks on 15.04.1980. The major

objective of nationalization was to ensure mass banking as against class

banking infrastructure. Prior to 1969, State Bank of India (SBI) was the

only public sector bank in India. SBI was nationalized in 1955 under the

SBI Act of 1955.

The following are some public sector banks in India

Bank of Baroda

Bank of India

Canara Bank

Central bank of India

Dena Bank

Punjab national Bank

State Bank of India

Union bank of India

Vijaya Bank etc.


2. Private sector Bank:

Prior to nationalization, Banks in India with the sole exception of

state bank of India were in private hands with community and trade

orientation. Nationalization of 14 banks in the year 1969 and another set

of 6 banks in the year 1980 reduced the importance of private sector

bank and public sector banks started playing a major role in the banking

services.

With history repeating itself, private sector banking got fillip with

the government of India relaxing the condition for opening of private

sector banks in the year 1994, as a part of their liberalization

programmed. Housing development Finance Corporation Limited

(HDFC) was amongst the first to receive an ‘in principle’ approval from

the Reserve Bank of India (RBI) to set up a bank in the private sector. As

on 31st of March 2005, there are 30 private sector banks operating in the

country.

Reserve Bank of India has come out on clear-cut terms their

guideline on ownership and governance in private sector banks like

private sector must maintain a net worth of Rs.300 crores at all times.

The following are some of the private sector banks in India

Federal Bank

HDFC Bank

ICICI Bank

Axis Bank

HSBC Bank etc.


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).

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.

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.

Growth:

In recent years, the bank has sought to expand its overseas

operations by buying foreign banks. It [SBI] is the only Indian bank to

feature in the top 100 world banks in the Fortune Global 500 rating and

various other rankings.

Group companies

SBI Capital Markets Ltd

SBI Mutual Fund (A Trust)

SBI Cards and Payment Services Pvt. Ltd

SBI Funds Management Pvt. Ltd

SBI Canada etc.

Branches

The corporate center of SBI is located in Mumbai. In order to cater

to different functions, there are several other establishments in and

outside Mumbai. 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 subsidiaries Banks are as follows:

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 Saurashtra (SBS) etc.

Personal Banking

SBI Term Deposits, SBI Loan For Pensioners

SBI Housing Loan Against Shares & Debentures


SBI Car Loan

SBI Educational Loan etc.

Other Services

Agriculture/Rural Banking

NRI Services

ATM Services

Corporate Banking

Internet Banking

Mobile Banking

International Banking

Safe Deposit Locker

Gift Cheque etc.

International presence http://en.wikipedia.org/wiki/File:SBImumbai.jpgState Bank of India (SBI)

Mumbai, Main Branch is India's largestbank, in Mumbai. The

government of India is the largest shareholder in SBI.

The bank has 141 overseas offices spread over 32 countries as on

31st Dec 2009. It has branches of the parent in Colombo, Dhaka, Hong

Kong, Johannesburg, London and environs, Los Angeles, Muscat, New

York, Osaka, Sydney and Tokyo.

Key Dates


1806: The Bank of Calcutta is established as the first

Western-type bank.

1809: The bank receives a charter from the imperial government

and changes its name to Bank of Bengal.

1840: A sister bank, Bank of Bombay, is formed.

1843: Another sister bank is formed: Bank of Madras, which, together

with Bank of Bengal and Bank of Bombay become known as the

presidency banks, which had the right to issue currency in their

regions.

1861: The Presidency Banks Act takes away currency issuing

privileges but offers incentives to begin rapid expansion, and the

three banks open nearly 50 branches among them by the mid-1870s.

1876: The creation of Central Treasuries ends the expansion phase

of the presidency banks.

1921: The presidency banks are merged to form a single entity,

Imperial Bank of India.

1955: The nationalization of Imperial Bank of India results in the

formation of the State Bank of India, which then becomes a primary

factor behind the country's industrial, agricultural, and rural

development.

1969: The Indian government establishes a monopoly over the

banking sector.

1972: SBI begins offering merchant banking services.

1986: SBI Capital Markets is created.

1995: SBI Commercial and International Bank Ltd. are launched as

part of SBI's stepped-up international banking operations.

1998: SBI launches credit cards in partnership with GE Capital.

2002: SBI networks 3,000 branches in a massive technology

implementation.


2004: A networking effort reaches 4,000 branches.

Bank of India was founded on September 7, 1906 by a group of

eminent businessmen from Mumbai. In July 1969 Bank of India was

nationalized along with 13 other banks. Beginning with a paid-up capital

of Rs.50 lakhs and 50 employees, the Bank has made a rapid growth

over the years.

Presently, Bank of India has 2609 branches in India spread over

all states union territories including 93 specialized branches. These

branches are controlled through 48 Zonal Office.

The Bank has been the first among the nationalized banks to

establish a fully computerized branch and ATM facility at the Mahalaxmi

Branch at Mumbai in 1989. Bank of India was the first Indian Bank to

open a branch outside the country, at London, in 1946, and also the first

to open a branch in Europe, Paris in 1974.

Bank of India is one of the nation's largest public banks. The bank

has around 2,900 branches in India and about 30 foreign offices in the

Channel Islands, China, France, Hong Kong, Indonesia, Japan, Kenya,

Singapore, the UK, US, West Indies, and Vietnam. International

operations account for about 20% of the bank's business.

Besides savings, checking, credit cards, and ATM services, the

bank offers personal loan services including mortgage, car, and vacation

loans. The bank's branches specialize in different areas: corporate

banking (credit) overseas branches (foreign exchange), NRI offices


(expat Indians). Other branches offer capital markets operations, asset

recovery, and agriculture and lease financing.

Government-owned since nationalization in 1969, it is one of

India's leading banks, with about 3097 branches including 27 branches

outside India. BOI is a founder member of SWIFT (Society for Worldwide

Inter Bank Financial Telecommunications) in India which facilitates

provision of cost-effective financial processing and communication

services.

Bank of India Type Public Bank (BSE: BOI)

Founded 1906

Headquarter Mumbai, India

Industry Financial

History

Previous banks that used the name Bank of India, At least three

banks having the name Bank of India had preceded the setting up of the

present Bank of India.

1. A person named Ramakrishna Dutt set up the first Bank of India in

Calcutta (now Kolkata) in 1828, but nothing more is known about

this bank.

2. The second Bank of India was incorporated in London in the year

1836 as an Anglo-Indian bank.

3. The third bank named Bank of India was registered in Bombay

(now Mumbai) in the year 1864.


The current bank

The earlier holders of the Bank of India name had failed and were

no longer in existence by the time a diverse group of Hindus, Muslims,

Paresis, and Jews helped establish the present Bank of India in 1906.

The promoters incorporated the Bank of India on 7 September

1906 under Act VI of 1882 with an authorized capital of Rs. 1 crore

divided into 100,000 shares each of Rs. 100. The promoters placed

55,000 shares privately, and issued 45,000 to the public by way of IPO

on 3 October 1906; the bank commenced operations on 1 November

1906.

The lead promoter of the Bank of India was Sir Sassoon J. David

(1849-1926). He was a member of the community of Baghdadi Jews,

which was notable for its history of social service and included the

Sassoon. He was a prudent banker, and remained the Chief Executive

of the bank from its founding in 1906 until his death in 1926.

Key Dates

1906: Founded with Head Office in Mumbai.

1921: BOI entered into an agreement with the Bombay Stock

Exchange to manage its clearing house.

1946: BOI opened a branch in London, the first Indian bank to do

so. This was also the first post-WWII overseas branch of any

Indian bank.

1950: BOI opened branches in Tokyo and Osaka.

1951: BOI opened a branch in Singapore.


1953: BOI opened a branch in Kenya and another in Uganda.

1953 or 54: BOI opened a branch in Aden.

1955: BOI opened a branch in Tanganyika.

1960: BOI opened a branch in Hong Kong.

1962: BOI opened a branch in Nigeria.

1967: The Government of Tanzania nationalized BOI operations in

Tanzania and folded them into the government-owned National

Commercial Bank, together with those of Bank of Baroda and

several other foreign banks.

1969: The Government of India nationalized the 14 top banks,

including Bank of India. In the same year, the People's Democratic

Republic of Yemen nationalized BOI branch in Aden, and the

Nigerian and Ugandan governments forced BOI to incorporate its

branches in those countries.

1970: National Bank of Southern Yemen incorporated BOI branch

in Yemen, together with those of all the other banks in the country;

this is now National Bank of Yemen. BOI was the only Indian bank

in the country.

1972: BOI sold its Uganda operation to Bank of Baroda.

1973: BOI opened a rep in Jakarta.

1974: BOI opened a branch in Paris. This was the first branch of

an Indian bank in Europe.

1976: The Nigerian government acquired 60% of the shares in

Bank of India (Nigeria).

1978: BOI opened a branch in New York.

1970s: BOI opened an agency in San Francisco.

1980: Bank of India (Nigeria) Ltd, changed its name to Allied Bank

of Nigeria.


1986: BOI acquired Palavers Central Bank (Karur Central Bank or

Parur Central Bank) in Kerala in a rescue.

1987: BOI took over the three UK branches of Central Bank of

India (CBI). CBI had been caught up in the Sethia fraud and

default and the Reserve Bank of India required it to transfer its

branches.

2003: BOI opened a representative office in Shenzhen.

2005: BOI opened a representative office in Vietnam.

2006: BOI plans to upgrade the Shenzhen and Vietnam

representative offices to branches, and to open representative

offices in Beijing, Doha, and Johannesburg. In addition, BOI plans

to establish a branch in Antwerp and a subsidiary in Dar-es-

Salaam, marking its return to Tanzania after 37 years.

2007: BOI acquired 76 percent of Indonesia-based PT Bank

Swadesi.

ICICI currently has subsidiaries in the UK, Russia, Canada, Singapore,

Dubai, etc. ICICI Bank, with market capitalization of about Rs. 480.00

billion, ranked third amongst all the companies listed on the Indian stock

exchanges in June 2006.


Overview ICICI Bank is India’s second largest bank with total assets of

Rs. 3363.74 billion at September 30, 2009. The Bank has a network of

1590 branches and about 4883 ATMs in India and presence in 18

countries.

History

ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian

financial institution, and was its wholly-owned subsidiary. 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.

In the 1990s, ICICI transformed its business from a development

financial institution offering to a diversified financial services group

offering. 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 October 2001, the Boards of Directors of ICICI and ICICI Bank

approved the merger of ICICI. The merger was approved by the High

Court of Gujarat at Ahmadabad in March 2002, by the High Court of

Judicature at Mumbai and the Reserve Bank of India in April 2002.

In the year 2000, ICICI Bank offered made an equity offering in the

form of ADRs on the NEW YORK Stock Exchange (NYSE), there by


becoming the first Indian company and the first bank or financial

institution from non-Japan Asia to be listed on the NYSE.

ICICI Bank is the largest private sector bank in India in terms of

market capitalization. It is also the second largest bank in India in

terms of assets with a total asset. ICICI Bank has an extensive network

of 1544 branches with about 4816 ATMs located across India and in 18

other countries.

It is considered as one of the ‘Big Four Bank’ in India along with

State Bank of India, HDFC Bank and Axis Bank. ICICI Bank provides a

wide banking products and financial services like investment banking,

venture capital, life and non-life insurance and asset management. This

bank is also India’s largest credit card issuer.

Subsidiaries and Branches

ICICI Bank has branches and subsidiaries in following

countries:

United Kingdom

Russia


Canada

United States

Singapore

Hong Kong

Sri Lanka

Dubai

Chinaetc.

Channels

ICICI Bank has the following channels through which it offers its

products and services to its customers.

Braches

ATMs

Internet Banking

Mobile Banking

Products and Services

ICICI Bank offers Deposits, Loans, Cards, Investment,

Insurance, NRI Services and Online Services etc.

Deposits

Following deposits are offered:


Saving Account

Special Saving Account

Fixed Deposits

Child Education plan

Salary Account

Resident Foreign Currency Account

Loans

ICICI Bank offers following loan facilities:

Home Loans

Personal Loan

Car Loans

Commercial Vehicle Loans

Loan Against Gold Ornament

Cards

ICICI Bank is India’s largest issuer of credit cards.

Consumer cards

1) Credit cards

2) Travel Cards

3) Debit Cards


Commercial Cards

1) Corporate Cards

2) Prepaid Cards

3) Purchase Cards

4) Distribution Cards

5) Business Cards

Merchant services

Investments

ICICI Bank facilitates a range of investment products including:

ICICI Bank Tax Saving Bonds

Mutual Fund

Government of India Bonds

Initial Public Offers by corporate

Foreign Exchange Services

ICICI Bank Pure Gold

Senior Citizens Saving Scheme, 2004

Insurance

ICICI Bank offers various types of insurance:


Home Insurance

1) Health Insurance

2) Health Advantage Plus

3) Family Floater

4) Personal Accident

Travel Insurance

1) Individual Overseas Travel Insurance

2) Student Medical Insurance

Motor Insurance

1) Car Insurance

2) Two wheeler Insurance

Life Insurance

1) ICICI Prudential Life Time Gold

2) ICICI Prudential Life State RP

Branches & ATMs

ICICI Bank has a wide network both in India and abroad. ICICI

Bank has made its presence felt in 18 countries-United States,


Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai

International finance centre and representative offices in United Arab

Emirates, China, South Africa Bangladesh, Thailand, Malaysia and

Indonesia. The Bank proudly holds its subsidiaries in the United

Kingdom, Russia and Canada out of which, the UK subsidiary has

established branches in Belgium and Germany.

Personal Banking

Deposits

Loans

Cars

Investments

Insurance

Axis Bank was the first of the new private banks to have begun

operations in 1994, after the Government of India allowed new private

banks to be established. The Bank was promoted jointly by the

Administrator of the specified undertaking of the Unit Trust of India (UTI -

I), Life Insurance Corporation of India (LIC) and General Insurance

Corporation of India (GIC) and other four PSU insurance companies, i.e.


National Insurance Company Ltd., The New India Assurance Company

Ltd., The Oriental Insurance Company Ltd. and United India Insurance

Company Ltd.

The Bank's Registered Office is at Ahmadabad and its Central

Office is located at Mumbai. The Bank has a very wide network of more

than 905 branches and Extension Counters (as on 30th September

2009). The Bank has a network of over 3894 ATMs (as on 30th

September 2009) providing 24 hrs a day banking convenience to its

customers. This is one of the largest ATM networks in the country.

1993The Bank was incorporated on 3rd December and Certificate of

Business.

1997The Bank obtained license to act as Depository Participant with

NSDL and applied for registration with SEBI to act as `Trustee to

Debenture Holders'. Rupees 100 crores was contributed by UTI, the rest

from LIC Rs 7.5crores, GIC and its four subsidiaries Rs 1.5 crores each.

1998

The Bank has 28 branches in urban and semi urban areas as on

31st July. All the branches are fully computerized and networked

through VSAT. ATM services are available in 27 branches.

The company offers ATM cards, using which account-holders

can withdraw money from any of the bank's ATMs across the country

which is inter-connected by VSAT.

UTI Bank has launched a new retail product with operational

Flexibility for its customers.UTI Bank promoted by India's pioneer mutual

fund Unit Trust of India along with LIC, GIC and its four subsidiaries.


1999

UTI Bank and Citibank have launched an international co-

branded Credit card.

UTI Bank and Citibank have come together to launch an

international Co-branded credit card under the MasterCard umbrella.

2000The Bank has announced the launch of Tele-Depository Services

for its depository clients. UTI Bank has launch of `I Connect', its Internet

banking Product. UTI Bank has signed a memorandum of understanding

with equitymaster.com for e-broking activities of the site.

India bulls have signed a memorandum of understanding with

UTI Bank. UTI Bank has entered into an agreement with Stock Holding

Corporation of India.

2001

UTI Bank launched a private placement of non-convertible

debentures to rise up to Rs 75 crore. UTI Bank has opened two offsite

ATMs and one extension counter with an ATM in Mangalore, taking its

total number of ATMs across the country to 355.

2002


UTI Bank Ltd has informed BSE that Shri B R Bar wale has

resigned as a Director of the Bank w.e.f. January 02, 2002. A C Shah,

former chairman of Bank of Baroda, also retired from the bank’s board in

the third quarter of last year. His place continues to be vacant.

M Damodaran took over as the director of the board after taking in the

reins of UTI. B S Pundit has also joined the bank’s board subsequent to

the retirement of K G Vassal.

UTI Bank Ltd has informed that on laying down the office of

Chairman of LIC on being appointed as Chairman of SEBI, Shri G N

Bajpai, Nominee Director of LIC has resigned as a Director of the Bank.

2002

UTI Bank Ltd has informed BSE that a meeting of the Board of

Directors of the Bank is scheduled to be held on October 24, 2002 to

Consider and take on record the unaudited half yearly/quarterly Financial

results of the Bank for the half year/Quarter ended September 30, 2002.

2003

UTI Bank Ltd has informed BSE that at the meeting of the Board

of Directors of the company held on January 16, 2003, Shri R N

Bharadwaj, Managing Director of LIC has been appointed as an

Additional Director of the Bank with immediate effect.


UTI has been authorized to launch 16 ATMs on the Western

Railway Stations of Mumbai Division. UTI Bank ties up with UK govt.

fund for contract farming

2004

UTI Bank opens new branch in Udupi. UTI Bank, Geojit in pact

for trading platform in Qatar. UTI Bank ties up with Shriram Group Cos

UTI Bank installs ATM in Thiruvananthapura. Launches

`Remittance Card' in association with Remit2India, a Website offering

money-transfer services

2005

UTI Bank enters into a banc assurance partnership with Bajaj

Allianz General for selling general insurance products through its branch

network.

UTI Bank launches its first Satellite Retail Assets Centre (SRAC)

in Karnataka at Mangalore.

2006

UBL sets up branch in Jaipur

UTI Bank unveils priority banking loung


Traditional set of Ratios like turn over, liquidity, current,

ratios are not implied for the study of performance of banks so,

we use C.A.M.E.L model.

This model is recommended by Padmanabhan Committee

(1995)

Appointed by RBI in 1995 to suggest changes in the approach

and style of inspection and follow up by the Central Bank, under

the chairmanship of S. padmanabhan (Former Chairman of Indian

Overseas Bank).

Recommendations are yet to be accepted by RBI. The major

recommendations are:

Ongoing supervision:

Shift from current system of periodical inspection to ongoing

or continuous supervision.

CAMEL Rating Model:

1) Each Bank should be raised on a five score scale A to E

indicating in descending order the soundness and

strength of the bank.


2) For Indian banks the rating will be based on five

parameters (C.A.M.E.L.)

Capital Adequacy

Asset Quality

Management

Earnings

Liquidity

Periodicity of supervision should be discriminatory based on

bank’s rating.

Chapter:3

C.A.M.E.L. MODEL


All the banks were first individually ranked based on the sub-

parameters of each parameter. The sum of these ranks was then to

arrive at the Group Average of individual banks for each parameter.

Finally, the composite rankings for banks were arrived at after computing

the average of these group averages. Banks were ranked in the

ascending/descending order based on the individual sub-parameters.

1.1 Capital Adequacy

Capital Adequacy indicates the overall financial condition of a

bank and also the ability of the Management to meet the need for

additional capital.

Capital Adequacy Ratio:

Capital Adequacy Ratio reflects the ability of a bank to

deal with probable loan defaults. As per the latest RBI norms, banks in

India should have a CAR of 9%. It is arrived at by dividing the Tier 1 and

Tier 2 capital by risk-weighted assets. Tier1 capital includes equity

capital and free reserves. Tier 2 capital comprises sub-ordinate debt of

5-7 year. The higher the CAR means the stronger the bank.

Debt-Equity Ratio:

Debt-Equity Ratio is arrived at by dividing the total borrowings

and deposits by its shareholders’, which includes equity capital and

reserves and surpluses.


Advances to Assets Ratio:

This is the ratio of the Total Advances to Total Assets. Total

Advances also include receivables. The value of Total Assets excludes

the revaluation of all the assets.

Govt.-securities to Total Investment Ratio:

This ratio shows the risk involved in a bank’s investment. Since

Govt.- securities are risks free, the higher the Govt.-securities to

Investment ratio, the lower the risk involved in a bank’s investment. It is

arrived at by dividing the amount invested in government securities by

total investments.

1.2 Asset Quality

The prime motto behind measuring the assets quality is to

ascertain the component of non-performing assets as a percentage of

the total assets. In addition, the parameter also ascertains the NPA

movement and the amount locked up in investments as a percentage of

the total assets.


Net NPAs to Total Assets Ratio:

It is a measure of the quality of assets in a situation where the

management has not provided for loss on NPAs. Here, the Net NPAs

are measured as a percentage of the Total Assets. The lower the ratio

means the better quality of advances.

Net NPAs to Total Advances Ratio:

Net NPAs are gross NPAs net of provisions on NPAs and

suspense account. In this ratio, Net NPAs are measured as a

percentage of Net advances.

Total Investment to Total Assets Ratio:

This ratio is used as a tool to measure the percentage of total

assets locked up in investment, which by conventional definition, doesn’t

form part of the core income of a bank. It is arrived at by dividing total

investments by total assets.

1.3 Management

The Indian banking industry, An Independence and Autonomous watch

dog to monitor and ensure that the Banking Codes and Standards

adopted by the bank are adhered to in true spirit while delivering their

services. The Banking Codes and Standards board of India has been

registered as a separate Society under the


Societies Registration Act, 1860. The Banking Codes and Standards

Board of India is not a Department of the RBI. Reserve Bank of India

has agreed to lend it financial support for a limited period. It is an

independent Banking industry watch dog to ensure that the consumer

of banking services get what they are promised by the bank.

1.4 Earnings

To measure the efficiency of the management, we have used

parameters like profit per branch, business per employee and advances

to deposits.

Total Advances to Total Deposits Ratio:

This ratio measures the efficiency of the management in

converting the deposits available with the bank [excluding other funds

like equity capital, etc.] into advances. Total deposits include demand

deposits, saving deposits, term deposits and deposits of other banks.

Total advances also include receivables.

Profit per Employee Ratio:

This measures the efficiency of the employee at the branch level.

It also gives valuable inputs to assess the real strength of a bank’s

branch network. It is arrived at by dividing the net profit of the bank by

total number of branches. The higher the ratio means higher the

efficiency of the management. However, it is advisable to look at the


number of branches too, as a bank with fewer branches can get higher

ranking despite earning a lower net profit.

Business per Employee Ratio:

This tool measures the efficiency of all the employees of a bank

in generating the business for the bank. It is arrived at by dividing the

total business by the total number of employees. By business we mean

the sum of Total Advances and Total Deposits in a particular year.

Return on Net worth Ratio:

It is a measure of the profitability of a bank. Here, PAT is

expressed as a percentage of Average Net worth.

Earning Quality:

This parameter gains importance in the light of the argument that

much of a bank’s income is earned through non core activities like

investment, treasure operations, corporate advisory services and so on.

Here, we try to assess the quality of income of a bank in terms of income

of a bank in terms of income generated by core activity income from

lending operation.

Operating Profit by Average working Funds Ratio:


This is arrived at by dividing the operating profit by average

working funds, working funds or the daily average of the total assets

during the year.

Net Profit/Average Assets Ratio:

This ratio measures return on assets employed or the efficiency

in utilization of the assets. It is arrived at by dividing the Net profit by

Average assets, which is the average of the total assets in the current

year and previous year.

Interest income/working funds Ratio:

This ratio measures the income from lending operations as a

percentage of the working funds in a particular year. Interest income

includes income on advances, interest on deposits with RBI, and

dividend income.

Non-interest income/working funds Ratio:

This ratio measures the income from operations other than

lending as a percentage of working funds. Non-interest income is the

interest income earned by the banks excluding income on advances and

deposits with RBI.

1.5 Liquidity


Liquid Assets/Demand Deposits Ratio: This ratio measures the ability of a bank to meet the demand

from demand deposits in a particular year. It is arrived at by dividing

liquid assets by total demand deposits. Liquid assets include cash in

hand, balance with RBI, balance with other banks [both in India and

abroad], and money at call and short notice.

Liquid Assets to Total Deposits Ratio:

This ratio measures the liquidity available to the depositors of a

bank. Liquid assets include cash in hand, balance with RBI, balance with

other banks [both in India and abroad], and money at call and short

notice. Total deposits include demand deposits, saving deposits, term

deposits and deposits of other financial institutions.

Liquid Assets/Total Assets Ratio:

Liquid assets include cash in hand, balance with RBI, balance

with other banks [both in India and abroad], and money at call and short

notice. The ratio is arrived by dividing liquid assets by total assets.

Govt. Securities /Total Assets Ratio:

This ratio measures the proportion of risk-free liquid assets

invested in govt. securities as a percentage of the assets held by a bank

and is arrived at by dividing investment in government securities by total

assets.


Approved securities/Total Assets Ratio:

This is arrived at by dividing the total amt. invested in approved

securities by total assets. Approved securities are investments made in

state-associated bodies like electricity boards, housing boards,

corporation bonds and shares of regional rural banks.

Chapter:4

Ratio Analysis of performance of banks on C.A.M.E.L model


Use of geometrical mean

When values are given in the form of percentage for more than one year,

we cannot use arithmetical mean for analysis of ratios because

arithmetical mean cannot give exact value so it is desirable to use

geometrical mean in such situation.

Capital Adequacy

Capital Adequacy reflects the overall financial condition of a

bank and also the ability of the management to meet the need for

additional capital.

Capital Adequacy Ratio :-

As per the latest RBI norms, Banks in India should have a

CAR of 9%. It is arrived at by dividing the Tier I and Tier II capital

by risk weighted assets. Tier- I capital includes equity capital and

free reserves. Tier-II capital comprises subordinated debt of 5-7

years tenure.

The higher the CAR means the stronger the bank. Capital

Adequacy Ratio=Capital (Tier I, II) / Risk Weighted Assets * 100.

[Tier I = Equity Capital + Free Reserves] [ TierII: Debt of 5-7

years]


Table:-

Bank 04-05 05-06 06-07 07-08 08-09 Geometrical

Mean

SBI 12.45 11.88 12.34 13.54 12.97 12.62

BOI 11.52 10.75 11.75 12.95 13.21 12.34

ICICI 11.78 13.35 11.69 14.92 15.72 13.61

AXIS 11.20 12.70 11.57 13.73 13.69 12.38

11.50

12.00

12.50

13.00

13.50

14.00

SBI

BOI

ICICI

AXIS

SBI BOI ICICI AXIS

Bank

Geom

etrica

l Mea

n

CAPITAL ADEQUACY RATIO


CAPITAL ADEQUACY RATIO:-

Capital adequacy ratio indicates the ability of a bank to deal with

probable loan defaults. As per latest RBI Norms, Banks of India should

have a CAR of 9%.

From the above figure, we can observe that CAR ratios of all the

banks are higher than 9%.

Considering the figure of CAR ratio, it is evident that the

performance of ICICI is best followed by SBI, AXIS and BOI.

Banks Ranks

SBI 2

BOI 4

ICICI 1

AXIS 3

Debt – Equity Ratio :-


Debt – Equity Ratio is arrived at by dividing the total

borrowings and deposits by shareholder’s net worth, which

includes equity capital and reserves and surpluses.

Debt – Equity Ratio= Total Borrowings and Deposits /

Shareholder’s Net Worth. [Shareholder’s Net Worth = Eq. Capital

+Reserves +Surplus]

Table:-


Mean

SBI 19.07 17.32 15.76 10.55 9.27 13.85

BOI 18.99 20.03 21.46 14.84 14.76 16.74

ICICI 10.97 9.48 11.42 6.62 5.77 7.96

AXIS 21.5 13.91 14.91 10.63 10.00 13.65


0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

18.00

SBI

BOI

ICICI

AXIS

SBI BOI ICICI AXIS

Bank

Geom

etrica

l Mea

n

DEBT EQUITY RATIO

DEBT EQUITY RATIO:-

Lower debt equity ratio is preferable while higher debt-equity

ratio is not preferable.

From the figure of Geometric Mean of debt-equity ratio of all

the four banks, we can see that debt equity ratio of ICICI is the lowest

which is preferable while BOI has highest debt-equity ratio which is not

desirable.

BANKS RANKS

SBI 3


BOI 4

ICICI 1

AXIS 2

Advances to Assets (ADV/AST) Ratio :-

This is the ratio of the Total Advances to Total Assets. It is

arrived at by dividing the Total Advances by Total Assets.

Total Advances to Total Assets Ratio=Total Advances / Total Assets.

[Total Advances = Advances + Receivables]

[Total Assets =Total Assets – Revaluation of Assets]

Table:-


Mean

SBI 61.24 59.23 58.23 57.76 56.25 58.52

BOI 65.22 64.28 67.39 68.47 68.71 66.94

ICICI 54.52 58.14 56.83 56.43 58.00 56.23

AXIS 36.31 41.34 50.34 54.45 55.00 44.69


0.00

10.00

20.00

30.00

40.00

50.00

60.00

70.00

SBI

BOI

ICICI

AXIS

SBI BOI ICICI AXIS

Bank

Geom

etrica

l Mea

n

ADVANCES TO ASSETS RATIO

ADVANCES TO ASSETS RATIO:-

An advance to asset ratio is another key factor of the capital adequacy

parameter and reflects banks’ aggressiveness in lending funds. Higher

the ratio, banks are more aggressive towards landing funds and vice

versa.

Considering the figures of this ratio, we can conclude that BOI

has highest ratio which means BOI is more aggressive towards lending

funds and Axis bank has lowest ratio which shows that Axis bank is least

aggressive towards lending funds among all four banks.


Government Securities to Total Investments(G-Secs/INV) Ratio :-

This ratio shows the risk involved in a bank’s investments.

Since government securities are risk-free, the higher the ratio, the

lower the risk involved in a bank’s investments.

It is arrived at by dividing the amount invested in

Government Securities by Total Investments. Government

Securities to Total Investment Ratio = Amt. Invested in Govt.

Securities / Total Investment

Table:-


Mean

SBI 0.66 0.70 0.72 0.74 0.82 0.73

BOI 0.68 0.69 0.72 0.79 0.81 0.74

ICICI 0.73 0.75 0.74 0.68 0.62 0.70

AXIS 0.65 0.53 0.62 0.59 0.60 0.60


0.00

0.10

0.20

0.30

0.40

0.50

0.60

0.70

0.80

SBI

BOI

ICICI

AXIS

SBI BOI ICICI AXIS

Bank

Geom

etrica

l Mea

n

GOVERNMENT SECURITIES/ TOTAL INCOME RATIO

GOVERNMENT SECURITIES/ TOTAL INCOME RATIO :-

Higher the government securities to total investment ratio, lower risk

involved in bank’s investments. Lower the ratio higher the risk involved in

bank’s investment.

From the figures of this ratio, we can observe that all the banks

have almost same ratio on government securities to total investment

parameters. Public sector banks top followed by private sector banks.

Which implies that investment portfolio of public sector bank is safest

and shows least degree of risk.


Assets Quality The prime motto behind measuring the assets quality is to

ascertain the component of non-performing assets as a

percentage of the total assets. In addition, the parameter also

ascertains the NPA movement and the amount locked up in

investments as a percentage of the total assets.

Net NPAs to Total Assets (NNPAs/TA) Ratio:- NPA [Non Performing Assets] = Under RBI guidelines, NPA

means amount of interest or principal invested in terms loan for more

than 90days.

Net NPAs are measured as a percentage of Total Assets.

The lower the ratio means the better the quality of advances. Net

NPAs to Total Assets (NNPAs/TA) Ratio = Net NPAs / Total

Assets * 100

Table:-


Mean

SBI 2.65 1.82 1.53 1.35 1.24 1.65

BOI 1.21 1.53 1.86 1.32 1.47 1.33

ICICI 0.39 0.43 0.59 0.89 1.22 0.69

AXIS 1.03 1.07 0.61 0.36 0.35 0.60


0.000.200.400.600.801.001.201.401.601.80

SBI

BOI

ICICI

AXIS

SBI BOI ICICI AXIS

Bank

Geom

etrica

l Mea

n

NET NONPERFOMING ASSETS TO TOTAL ASSETS RATIO

NET NONPERFOMING ASSETS TO TOTAL ASSETS RATIO:-

Under RBI guidelines, NPA means amount of interest or

principal invested in terms loan for more than 90days.

Lower the Net NPA to total asset ratio better the quality of

advances. Considering the figures of this ratio, we can conclude that

private banks have lower ratio as compare to public sector banks which

implies that private sector banks have better quality of advances.

Net NPAs to Net Advances (NNPAs/NA) Ratio :- Net NPAs are Gross NPAs net of provisions on NPAs and

suspense account. Net NPAs are measured as a percentage of


Net Advances. Net NPAs to Net Advances (NNPAs/NA) Ratio

=Net NPAs / Net Advances * 100

Table:-


Mean

SBI 2.65 1.88 1.56 1.78 1.76 1.89

BOI 2.77 1.49 0.74 0.52 0.44 0.93

ICICI 0.71 0.74 1.03 1.58 2.12 1.13

AXIS 1.39 0.98 0.72 0.42 0.40 0.70


0.000.200.400.600.801.001.201.401.601.802.00

SBI

BOI

ICICI

AXIS

SBI BOI ICICI AXIS

Bank

Geom

etric

al Me

an

NET NON-PERFOMING ASSETS TO NET ADVANCES RATIO

NET NON-PERFOMING ASSETS TO NET ADVANCES RATIO :-

Lower the NPA to net advances ratio, better quality of assets. Considering the

figure of this ratio, we can observe that the performance Axis bank is the best

followed by BOI at 2nd, ICICI at 3rd and SBI at 4th.

BANKS RANKS

SBI 4


BOI 2

ICICI 3

AXIS 1

Total Investments to Total Assets (TI/TA) Ratio :- This ratio is used as a tool to measure the percentage of

Total Assets locked up in Investments. It is arrived at by dividing

Total Investments by Total Assets. Total Investments to Total

Assets (TI/TA) Ratio = Total Investments / Total Assets.

Table:-


Mean

SBI 42.86 32.90 26.33 26.26 28.61 30.84

BOI 29.69 28.30 25.06 23.38 23.32 25.82

ICICI 28.27 27.10 26.48 27.88 27.00 27.34

AXIS 32.26 37.82 36.72 30.76 31.36 33.66


0.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

SBI

BOI

ICICI

AXIS

SBI BOI ICICI AXIS

Bank

Geom

etrica

l Mea

n

TOTAL INVESTMENT TO TOTAL ASSETS RATIO

TOTAL INVESTMENT TO TOTAL ASSETS RATIO :-

Considering the figures of geometric mean of total investment to total asset

ratio, we can observe that AXIS bank tops followed by SBI at second, ICICI at

third and BOI at fourth.

BANKS RANKS

SBI 2

BOI 4

ICICI 3

AXIS 1


Management Efficiency Management efficiency is another key component of CAMEL

model. Management efficiency ratio includes profit per employee

ratio, Business per Employee, Return on Net worth, Total

advances to total deposits ratio.

Total Advances to Total Deposits(TA/TD) Ratio :- This ratio measures the efficiency of the management in

converting the deposits available with the bank excluding other

funds like equity capital, etc.) into advances.

It is arrived at by dividing Total Advances by Total Deposits.

Total Advances to Total Deposits (TA/TD) Ratio = Total

Advances / Total Deposits. [Total Advances = Advances +

Receivables] [Total Deposits = Demand + Saving + Term +

Others]

Table:-


Mean

SBI 0.55 0.69 0.77 0.78 0.73 0.70

BOI 0.78 0.76 0.79 0.81 0.81 0.79

ICICI 0.92 0.89 0.85 0.92 0.99 0.91

AXIS 0.49 0.56 0.63 0.68 0.69 0.61


0.000.100.200.300.400.500.600.700.800.901.00

SBI

BOI

ICICI

AXIS

SBI BOI ICICI AXIS

Bank

Geom

etrica

l Mea

n

TOTAL ADVANCES TO TOTAL DEPOSITS RATIO

TOTAL ADVANCES TO TOTAL DEPOSITS RATIO :-

This ratio measures the efficiency management in converting

deposits in to advances. Higher the ratio means better the efficiency

of management in converting deposits in to advances.

Considering the figures of this ratio, all the banks have almost

some ratio. ICICI bank top followed by BOI at second, SBI at third


and Axis at fourth. Thus we can say that ICICI has better efficiency

of management in converting deposits in to advances.

BANKS RANKS

SBI 3

BOI 2

ICICI 1

AXIS 4

Profit Per Employee(PPE) Ratio :- It is arrived at by dividing the Net Profit of the bank by Total

Number of Branches. Profit per Employee (PPE) Ratio =Net Profit /

Total No. of Branches


Table:-


Mean

SBI 2.08 2.17 2.37 2.86 3.26 2.51

BOI 0.80 1.66 2.71 4.95 7.49 2.66

ICICI 7.00 8.50 9.00 10.00 11.00 8.99

AXIS 8.07 7.03 7.59 8.39 10.02 8.16

0.001.002.003.004.005.006.007.008.009.00

SBI

BOI

ICICI

AXIS

SBI BOI ICICI AXIS

Bank

Geom

etrica

l Mea

n

PROFIT PER EMPLOYEE RATIO


PROFIT PER EMPLOYEE RATIO :- Higher the PPE ratio means higher the efficiency of

management.

Considering the figures of this ratio, we can see that PPE of

private sector bank is higher than public sector bank. Because no of

employees of private sector banks always less than the public

sector banks. Thus private sector banks are good in performance.

Business Per Employee (BPE) Ratio :- This ratio measures the efficiency of all the employees of the

banks in generating business for the bank. Higher this ratio, it is

desirable for bank and vice versa.

It is arrived at by dividing the Total Business by the Total

Number of Employees. Business per Employee (BPE) Ratio =Total

Business / Total No. of Employees. [Total Business = Total

Advances + Total Deposits]


Table:- Bank 04-05 05-06 06-07 07-08 08-09 Geometrical

Mean

SBI 21.33 43.21 61.33 88.41 35.64 44.68

BOI 32.30 38.1 49.8 65.21 83.3 50.55

ICICI 11.23 9.83 10.27 10.08 11.54 10.57

AXIS 8.95 8.08 10.24 11.27 10.60 9.76

0.00

10.00

20.00

30.00

40.00

50.00

60.00

SBI

BOI

ICICI

AXIS

SBI BOI ICICI AXIS

Bank

Geom

etrica

l Mea

n

BUSINESS PER EMPLOYEE RATIO


BUSINESS PER EMPLOYEE RATIO :- This ratio measures the efficiency of all the employees of the

banks in generating business for the bank. Higher this ratio, it is

desirable for bank and vice versa.

Considering the figures of BPE, we can observe that public

sector banks have higher BPE and private banks have less BPE.

This ratio points out that in spite of the competition from private

sector bank, public sector banks are out performing their

competitors in private sector.

BANKS RANKS

SBI 3

BOI 2

ICICI 1

AXIS 4

Return on Net Worth Ratio :- It is arrived at by dividing the Profit after Tax by Share

Holder’s Net Worth. Return on Net worth Ratio =PAT / Share

Holder’s Net Worth * 100. [PAT = Profit after Tax] [Share Holder’s

Net Worth = Eq. Capital + Reserves and Surpluses]


Table:-


Mean

SBI 18.10 15.47 14.24 18.50 19.83 17.10

BOI 7.62 14.07 19.05 18.98 22.28 15.39

ICICI 15.54 11.26 13.80 11.10 7.59 11.51

AXIS 27.09 25.85 21.84 16.09 19.93 21.78

0.00

5.00

10.00

15.00

20.00

25.00

SBI

BOI

ICICI

AXIS

SBI BOI ICICI AXIS

Bank

Geom

etrica

l Mea

n

RETURN ON NET WORTH RATIO


RETURN ON NET WORTH RATIO :- Higher the ratio means higher the profitability of a bank.

From the figures of return on network, we can observe that ratio

of Axis bank is the highest. This means that profitability of Axis bank is

good. On RON parameters, Axis bank top followed by SBI at second,

BOI at third and ICICI at forth.

BANKS RANKS

SBI 2

BOI 3

ICICI 4

AXIS 1

Earnings Quality The earning capacity of banks indicates its profitability and

sustainability of the same

Operating Profit by Avg. Working Funds Ratio :- This is arrived at by dividing the Operating Profit by Avg.

Working Funds, working Funds or the Daily Avg. of Total Assets

during the year. Operating Profit by Avg. Working Funds Ratio

=Operating Profit / Avg. Working Funds


Table:-

Bank 04-05 05-06 06-07 07-08 08-09 Geometrical Mean

SBI 3.21 4.20 6.22 7.62 4.31 4.88

BOI 1.62 1.64 1.89 2.31 2.70 1.99

ICICI 1.89 1.98 2.05 2.14 2.33 2.07

AXIS 3.49 2.04 2.10 2.57 2.95 2.58

0.000.501.001.502.002.503.003.504.004.505.00

SBI

BOI

ICICI

AXIS

SBI BOI ICICI AXIS

Bank

Geom

etrica

l Mea

n

OPERATING PROFIT BY AVG. WORKING FUNDS RATIO


OPERATING PROFIT BY AVG. WORKING FUNDS RATIO :-

This ratio indicates the proportion of operating profit to

average working fund. High operating profit by avg. working funds

indicates management’s efficiency in productive development of its

avg.working funds.

Considering the figure of operating profit by avg.

working fund ratio, it is an evident that the performance of SBI is

best followed by AXIS, ICICI, and BOI.

BANKS RANKS

SBI 2

BOI 3

ICICI 4

AXIS 1

Net Profit / Average Assets (PAT/AA) Ratio :- This ratio measures the return on assets employed or the

efficiency in utilization of assets. It is arrived at by dividing the Net

Profit by Avg. Assets. Net Profit / Average Assets (PAT/AA) Ratio

= Net Profit / Avg. Assets. [Avg.Assets = Current Year’s Assets +

Previous Year’s / 2]


Table:-


Mean

SBI 2.10 2.30 2.50 2.60 2.90 2.47

BOI 2.51 2.54 2.72 2.64 2.73 2.63

ICICI 1.31 1.21 0.91 1.39 0.96 1.14

AXIS 1.82 1.71 1.07 1.17 2.65 1.60

0.00

0.50

1.00

1.50

2.00

2.50

3.00

SBI

BOI

ICICI

AXIS

SBI BOI ICICI AXIS

Bank

Geom

etrica

l Mean

NET PROFIT TO AVERAGE ASSETS RATIO

NET PROFIT TO AVERAGE ASSETS RATIO :-


This ratio measures the return on assets or efficiency of

management in utilization of assets. Higher the ratio means the

stronger performance of bank.

From the figure of Net profit to average assets ratio, we can

observe that BOI top followed by SBI at second rank, AXIS is third

rank and ICICI at fourth.

BANKS RANKS

SBI 2

BOI 1

ICICI 4

AXIS 3

Interest Income / Working Funds Ratio :- This ratio measures the income from lending operations as a

percentage of the working funds in a year. It is arrived at by

dividing the Interest Income by Working Funds. Interest Income /

Working Funds Ratio = Interest Income / Working Funds. [Interest

Income = Income on Advances + Income on Deposit with RBI +

Dividend Income]

Table:-



Mean

SBI 8.20 8.28 8.73 6.78 6.61 7.67

BOI 6.71 6.78 7.23 7.71 8.09 7.28

ICICI 5.61 5.48 6.38 7.70 6.02 6.19

AXIS 8.08 6.94 7.43 8.08 8.59 7.80

0.001.002.003.004.005.006.007.008.00

SBI

BOI

ICICI

AXIS

SBI BOI ICICI AXIS

Bank

Geom

etrica

l Mea

n

INTEREST INCOME TO WORKING FUNDS RATIO

INTEREST INCOME TO WORKING FUNDS RATIO :-


This ratio measures the income from lending operation as

percentage of working fund in a year. Net interest margin to working

funds indicate the ability of bank to manage its cost of deposits.

Considering the figure of the interest income to working funds

ratio, it is evident that the performance of AXIS bank is best followed by

SBI then BOI and ICICI.

BANKS RANKS

SBI 2

BOI 1

ICICI 4

AXIS 3

Non Interest Income / Working Funds(NII/WF) Ratio :- This ratio measures the Operation from other than lending

operations as a percentage of working funds. Non-Interest Income

is the Interest earned by the banks excluding income on advances

and deposits with RBI. It is arrived at by dividing the Non Interest

Income by Working Funds. Non Interest Income / Working Funds

(NII/WF) Ratio = Non-Interest Income / Working Funds.

Table:-



Mean

SBI 1.80 1.71 1.28 1.21 1.32 1.44

BOI 1.29 1.14 1.23 1.32 1.51 1.29

ICICI 1.61 1.61 2.01 2.20 2.18 1.90

AXIS 2.75 1.50 1.68 2.07 2.30 2.01

0.00

0.50

1.00

1.50

2.00

2.50

SBI

BOI

ICICI

AXIS

SBI BOI ICICI AXIS

Bank

Geom

etrica

l Mea

n

NON INTEREST INCOME TO WORKING FUNDS RATIO


NON INTEREST INCOME TO WORKING FUNDS RATIO :-

This ratio indicates proportion of non int. income to working

funds. Non int. incomes are income other than income from interest.

Percentage of non int. income to working fund is higher is desirable.

From the figure of geometric mean on non int.-income to

working fund the parameter, AXIS bank top followed by ICICI then SBI

and BOI.

BANKS RANKS

SBI 2

BOI 1

ICICI 4

AXIS 3

Liquidity :- Liquidity is a crucial aspect which represents its ability to meet

its financial organizational responsibility. It’s very important fir a bank to

maintain a correct level of liquidity otherwise it will least to decline at

earning. High liquidity ratio shows comfort level of bank to maintain its

obligation.

Liquid Assets / Demand Deposits (LA/DD) Ratio :- This ratio measures the ability of a bank to meet the

demand from demand deposits in a particular year.


It is arrived at by dividing Liquid Assets by Total Demand

Deposits. Liquid Assets / Demand Deposits (LA/DD) Ratio = Liquid

Assets / Demand Deposits. [Liquid Assets = Cash + Bal. with RBI

+ Bal. with other Banks + Money Call and Short Notice]


Table:-


Mean

SBI 1.25 1.01 0.83 0.69 0.94 0.93

BOI 1.23 1.55 1.85 1.42 1.72 1.54

ICICI 1.01 1.03 1.74 1.54 1.39 1.31

AXIS 1.20 1.01 0.57 0.63 0.61 0.77

0.000.200.400.600.801.001.201.401.60

SBI

BOI

ICICI

AXIS

SBI BOI ICICI AXIS

Bank

Geom

etrica

l Mea

n

LIQUID ASSET TO DEMAND DEPOSITE RATIO


LIQUID ASSET TO DEMAND DEPOSITE RATIO :- This ratio measures the ability of bank to meet demand from

deposits in a particular bank and as and when customer demand

deposits back, the bank is only able to give deposits when it has

enough flow of liquidity.

Considering the figure of liquid assets to demand deposits, it

is desirable that the performance of BOI is best amongst all four

banks followed by ICICI, SBI and AXIS.

BANKS RANKS

SBI 3

BOI 1

ICICI 2

AXIS 4

Liquid Assets to Total Deposits (LA/TD) Ratio :- This ratio measures the liquidity available to the depositors of

a bank. It is arrived at by dividing Liquid Assets by Total Deposits.

Liquid Assets to Total Deposits (LA/TD) Ratio = Liquid Assets /

Total Deposits.


Table:-


Mean

SBI 0.16 0.12 0.13 0.13 0.14 0.14

BOI 0.15 0.12 0.15 0.12 0.11 0.13

ICICI 0.13 0.10 0.16 0.16 0.14 0.14

AXIS 0.12 0.14 0.12 0.14 0.13 0.13

0.12

0.13

0.14

SBI

BOI

ICICI

AXIS

SBI BOI ICICI AXIS

Bank

Geom

etrica

l Mea

n

LIQUID ASSETS TO TOTAL DEPOSITES RATIO


LIQUID ASSETS TO TOTAL DEPOSITES RATIO:- This ratio measures the liquidity available to the deposits of

bank.

From the figures of geometric mean on liquid assets to total

deposits parameter, the performance of private sector banks and

public sector bank are almost same.

Liquid Assets to Total Assets (LA/TA) Ratio :- This ratio shows the proportion of Liquid Assets to Total Assets. It is

arrived at by dividing Liquid Assets by Total Assets. Liquid Assets to

Total Assets (LA/TA) Ratio = Liquid Assets / Total Assets.


Table:-


Mean

SBI 0.06 0.07 0.08 0.09 0.11 0.08

BOI 0.08 0.10 0.12 0.10 0.10 0.10

ICICI 0.08 0.07 0.11 0.10 0.08 0.09

AXIS 0.26 0.12 0.09 0.11 0.10 0.13

0.00

0.02

0.04

0.06

0.08

0.10

0.12

0.14

SBI

BOI

ICICI

AXIS

SBI BOI ICICI AXIS

Bank

Geom

etrica

l Mean

LIQUID ASSETS TO TOTAL ASSETS


LIQUID ASSETS TO TOTAL ASSETS :- This ratio shows proportion of liquid assets to total assets.

Higher the ratio means higher the liquidity. It is desirable to have higher

liquidity. The banks must have higher liquidity.

Considering the figure of liquid asset to total assets, it is

evident that the performance of Axis bank is best and followed by BOI at

2nd, ICICI at 3rd and SBI at 4th.

BANKS RANKS

SBI 4

BOI 2

ICICI 3

AXIS 1

Government Securities to Total Assets (G-Secs/TA) Ratio :-

This ratio is arrived at by dividing investment in

Government Securities by Total Assets. Government Securities to

Total Assets (G-Secs/TA) Ratio = Investment in Govt. Securities /

Total Assets


Table:-


Mean

SBI 0.18 0.20 0.19 0.20 0.24 0.20

BOI 0.20 0.20 0.18 0.18 0.19 0.19

ICICI 0.21 0.20 0.20 0.19 0.17 0.19

AXIS 0.21 0.20 0.22 1.84 1.87 0.50

0.000.050.100.150.200.250.300.350.400.450.50

SBI

BOI

ICICI

AXIS

SBI BOI ICICI AXIS

Bank

Geom

etrica

l Mean

GOVERNMENT SECURITIES TO TOTAL ASSETS RATIO


GOVERNMENT SECURITIES TO TOTAL ASSETS RATIO:-

This ratio shows the proportion of government securities to

total assets (risk free security).

From the figure of the government securities to total assets,

we can observe that Axis bank top followed by SBI at 2nd, BOI at 3rd and

ICICI at 4th.

BANKS RANKS

SBI 4

BOI 2

ICICI 3

AXIS 1

Approved Securities to Total Assets Ratio :- This ratio is arrived at by dividing the total amount invested in

Approved Securities by Total Assets. Approved Securities are

investment made in state-associated bodies. Approved Securities

to Total Assets Ratio = Approved Securities / Total Assets.

[Approved Securities = Electricity Boards + Housing Boards+

Corporation Bonds + Shares of Regional Rural Banks]

Table:- B.P. COLLEGE OF BUSINESS ADMINISTRATION, TY BBA/SEM-VI 81


Mean

SBI 0.15 0.26 0.32 0.38 0.20 0.25

BOI 0.90 0.70 0.60 0.40 0.30 0.54

ICICI 0.016 0.015 0.013 0.012 0.010 0.01

AXIS 0.11 0.15 0.10 0.10 0.10 0.11

0.00

0.10

0.20

0.30

0.40

0.50

0.60

SBI

BOI

ICICI

AXIS

SBI BOI ICICI AXIS

Bank

Geom

etrica

l Mean

APPROVED SECURITY TO TOTAL ASSETS RATIO

APPROVED SECURITY TO TOTAL ASSETS RATIO :-


Considering the figure of the approved security to total assets, it is

evident that the performance of BOI is best followed by SBI than AXIS

and ICICI.

BANKS RANKS

SBI 4

BOI 2

ICICI 3

AXIS 1

Chapter: 5:Research Analysis: B.P. COLLEGE OF BUSINESS ADMINISTRATION, TY BBA/SEM-VI 83

Capital adequacy ratio

Particular

s

Capital

Adequac

y ratio

Debt-

Equit

y

ratio

Advance

s to

asset

ratio

G.sec. to

total

investme

nt ratio

Averag

e

Finding

s

(Ranks

)

SBI 2 3 2 2 2.25 2

BOI 4 4 1 1 2.50 3

ICICI 1 1 3 3 2.00 1

AXIS 3 2 4 4 3.25 4

In the above table we can see that ICICI tops in the capital

adequacy parameter’s ratios followed by SBI, BOI and AXIS

Assets Quality Parameter:


Particular

s

NPA to

total

Asset

ratio

Net NPA

to net

Advance

ratio

Total

Investment

to total

assets ratio

Averag

e

Findings

(Ranks)

SBI 4 4 3 3.67 4

BOI 3 2 1 2.00 1

ICICI 2 3 2 2.33 3

AXIS 1 1 4 2.00 1

In the above table we can see that BOI and AXIS banks tops at

first position in the asset quality parameter followed by SBI and ICICI.

Management efficiency parameter:

Particulars Total Profit per Business RON Average Findings


Adv. to

total

deposit

ratio

employee per

employee

(Ranks)

SBI 3 4 2 2 2.75 3

BOI 2 3 1 3 2.25 1

ICICI 1 1 3 4 2.5 2

AXIS 4 2 4 1 2.75 3

In the above table we can see that BOI tops in the management

efficiency parameter’s ratio.

Earning quality parameter:

Particular Operating Net Interest Non Average Findings


s profit by

avg.

working

fund

profit

/avg.

assets

ratio

/

working

funds

Int./

working

funds (Ranks)

SBI 1 2 2 3 2 2

BOI 4 1 3 4 3 3

ICICI 3 4 4 2 3.25 4

AXIS 2 3 1 1 1.75 1

In the above table we can see that AXIS tops in the earning quality

parameter’s ratios followed by SBI, BOI and ICICI.

Liquidity parameter:


Particular Liquid

assets/

demand

deposit

s

Liquid

assets/

total

deposit

s

Liqui

d

asset

s/

total

asset

s

Gov.

sec. to

total

assets

Approve

d sec. to

total

assets

Averag

e

Findings

(Ranks)

SBI 3 1 4 2 2 2.4 3

BOI 1 2 2 3 1 1.8 1

ICICI 2 1 3 3 4 2.6 4

AXIS 4 2 1 1 3 2.2 2

In the above table we can see that BOI tops in the liquidity

parameter’s ratios followed by AXIS, SBI and ICICI.

Q-1) Are you customer with our bank?


99%

1%

Customer of Bank

12

Analysis:

From the above diagram, from the survey of 100 Respondents are the customer with our sample banks SBI, ICICI,BOI and AXIS bank.

There should be required 100% Response for ‘yes’ through the question for the Identification of Respondents.

Interpretation:

As per the above analysis, all the respondents are the customers of the bank, the respondents who is not customer of the bank for that respondents are not eligible for the sample.


Answer option

NO. of respondents

Response in %

Yes 100 100%No 0 0Total 100 100%

Q-2) Which banks do you prefer?

Name of banks

Response in %

NO. of respondents

SBI 28% 28BOI 22% 22ICICI 20% 20AXIS 30% 30Total 100% 100

SBI BOI ICICI AXIS0%

5%

10%

15%

20%

25%

30%

28%22% 20%

30%

Response in %

Response in %

Name of Banks

Resp

onse

in %

Analyses:-

As per the above diagram, We are selecting those respondents who are performing our sample banks from the all 100 Respondents,

28 Respondents have been preferred State Bank of India. 22 Respondents have been preferred ICICI. 20 Respondents have been preferred Bank of India. 30 Respondents have been preferred Axis Bank.

For all the Respondents Response presenting in percentage (%) for SBI, ICICI, BOI and Axis with 28%, 22%, 20% and 30% respectively.


Q-3) which type of account you are having?

Name of banks

Savings A/c Current A/c Joint A/c Business A/c

SBI 15 5 6 2BOI 12 6 3 1

ICICI 13 4 2 1AXIS 18 7 3 2

Savings A/c Current A/c Joint A/c Business A/c0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

53.57% 17.86%21.43% 7.14%

54.55% 27.27%

13.64%4.55%

65.00% 20.00%15.00%

5.00%

60.00% 23.33%10.00%

6.67%

AXIS

ICICI

BOI

SBI

Type of Account

Resp

onse

s in

%

Analyses :


Name of banks

Savings A/c Current A/c Joint A/c Business A/c

SBI 53.57% 17.86% 21.43% 7.14%BOI 54.55% 27.27% 13.64% 4.55%

ICICI 65.00% 20.00% 15.00% 5.00%AXIS 60.00% 23.33% 10.00% 6.67%

From the above diagram, the Respondents are mention their types of accounts, which are saving accounts, current accounts, joint accounts and Business accounts.

In SBI from 28 Respondents who have possessing 53.57% of saving A/C,17.86% of current A/C,21.43% of joint A/C and 7.14 of business A/C.

In the ICICI from 22 Respondents who have possessing 54.55%, 27.27%, 21.43%, and 4.55% with saving A/C, current A/C, joint A/C, and Business A/C are respectively.

In the BOI from the 20 Respondents who have possessing 65% of saving A/C, 20% of Current A/c,15% of joint A/C and 5% of business A/C.

In the Axis bank from the 30 Respondents who have possessing 60% of saving A/C, 23.33% of current A/C,10% of joint A/C and 6.67% of business A/C

Interpretation:-

From the above analysis, we can know that different types of an account holder how to handle different types of A/C holder are required distinctive services which are providing by banks.

Savings A/c is more preferable than the all selected others banks.

Public sector banks SBI & BOI having more account holders than the privet ICICI & AXIS banks.


Q-4) how much satisfied are you with the service provided by the bank?

Name of banks

Less than a year

Between 1-5year

Between 5-10year

Above 10years

SBI 8 15 5 0BOI 10 8 3 1ICICI 9 6 5 0AXIS 15 10 3 2

Less than a year Bettwen 1-5year Bettwen 5-10year Above 10years0%

10%20%30%40%50%60%70%80%90%

100%

Reletionship with custemers

AXISICICIBOISBI

Time Period

Resp

onse

s in

%

Analyses:

From the above diagram, we are presenting that how long they are customer of our bank. In SBI BANK from 28 respondents there are 8 responses 1 year

old, 15 responses 5years older, and 5 responses 10years older. In ICICI BANK from 22 respondents there are 10 responses 1

year old, 8 responses 5years older, 3 responses 10years older, and 1 response above 10years older.


In BOI BANK from 20 respondents there are 9 responses 1 year old, 6 responses 5years older, and 5 responses 10years older.

In AXIS BANK from 30 respondents there are 15 responses 1 year old, 10 responses 5years older, 3 responses 10years older and 2 responses above 10years older.

Interpretation:

Here, we know about the relationship between customer and respective banks by which how much longer they are maintaining their account.

We also measure the customer satisfaction from which they maintain an account and transactions.


Q-5) how much satisfied are you with the service provided by the bank?

Name of banks

Very Satisfied

Satisfied Somewhat satisfied

Dissatisfied


Online Ticket booking Online Bill

payments Balance CheckRequest for a cheque book

05

1015202530354045

16

63

3

10

8

31

8

6

5

1

10

15

3

3

AXISICICIBOISBI

Answer Options

No.

of R

espo

nses

Analyses:-

From the above diagram, we are presenting the respondents satisfaction with respective banks.

In SBI from 28 respondents 10, 8, 6, and 4 with very satisfied, satisfied, somewhat satisfied, dissatisfied.

In ICICI from 22 respondents 8,10,2, and 2 with very satisfied, satisfied, somewhat satisfied, dissatisfied.

In BOI from 20 respondents 6, 7, 2, and 5 with very satisfied, satisfied, somewhat satisfied, dissatisfied.

In AXIS from 30 respondents 12, 9, 7, and 2 with very satisfied, satisfied, somewhat satisfied, dissatisfied.


Interpretation:

As per the analysis public sector banks respondents are more dissatisfied than the private sector banks .There is also mention that respondents more satisfied by private bank than the public sector.


Q-6) do you feel that the procedure to open account with the bank was difficult?

SBI BOI ICICI AXIS02468

1012141618

108

7

12

18

1413

18

YesNo

Name of Bank

No. o

f Res

pons

es

Analyses:-

From the above diagram, there are respondents give Response for the difficult in open an account. In SBI from 28 Respondents, 10 get difficulty and 18 have

number of difficulty for open an account. In ICICI from 22 Respondents, 8 get difficulty and 14 have

number of difficulty for open an account. In BOI from 20 Respondents, 7 get difficulty and 13 have

number of difficulty for open an account. In Axis from 30 Respondents, 12 get difficulty and 18 have

number of difficulty for open an account


Name of banks

Yes No

SBI 10 18BOI 8 14ICICI 7 13AXIS 12 18

Interpretation:-

From the above information SBI & BOI bank respondent get less difficulty then the ICICI & Axis bank.


Q-7) Do you always get prompt service whenever you visit the branch?

Online Ticket book-ing

Online Bill payments Balance Check Request for a cheque book

0

5

10

15

20

25

30

35

40

45

50

16

6 3 3

10

8

3 1

8

6

51

10

15

3

3

AXISICICIBOISBI

Answer Option

No. o

f Res

pons

es

Analysis:-

From the above diagram, are presenting that,

In SBI 28 respondents 8, 10, 8, 2 with always, sometime, rarely and never respectively.

In ICICI bank from 22 respondent 13, 6, 2 and 1 with always, sometime, rarely and never respectively.

In BOI bank from 20 respondent 10, 4, 3, and 1 with always, sometime, rarely and never respectively.

In Axis bank from 30 respondents 15, 8, 7, with always, sometime, rarely respectively.


Name of banks

Always Sometime

Rarely Never


Interpretation:-

From the above analysis, SBI and BOI possessing less prompt services then ICICI and Axis.


Q-8) Do you agree that minimum account limit is not high and easy to maintain?

Online Ticket booking Online Bill

payments Balance CheckRequest for a cheque book

05

1015202530354045

16

63

3

10

8

31

8

6

5

1

10

15

3

3

AXIS

ICICI

BOI

SBI

Answer Option

No.

of R

espo

nses

Analysis:-

From the above diagram, gave response that on

10 respondents strongly agree, 8 respondent agree, 5 respondent somewhat agree, 3 respondent disagree and 2 respondent strongly agree of them SBI.

8 respondents strongly agree, 6 respondent agree, 6 respondent somewhat agree, 2 respondent disagree and 2 respondent strongly agree of them BOI.

11 respondents strongly agree, 8 respondent agree, 1 respondent somewhat agree, and some respondent are not give response to disagree and strongly agree of them ICICI.

12 respondents strongly agree, 8 respondent agree, 6 respondent somewhat agree, 1 respondent disagree and 3 respondent strongly agree of them Axis.


Name of banks

Strongly agree

Agree

Somewhat agree

disagree

Strongly disagree

SBI 10 8 5 3 2BOI 8 6 2 2 2ICICI 11 8 1 0 0AXIS 12 8 6 1 3

Interpretation:-

We are also interpret that, public banks SBI and BOI respondents are feel too easy to maintain but some of the private the bank are not agree to maintain their minimum account balance.


Q-9) would you like suggest any changes or improvement in any service or any feature of the bank?

Name of banks

Yes No

SBI 64.29% 35.71%BOI 59.09% 40.91%ICICI 40% 60%AXIS 70.21% 30%

SBIBOI

ICICIAXIS

0

5

10

15

20

25

Online Bill paymentsOnline Ticket booking

Name of Bank

Re

sp

on

se

s in

%

Analysis:-

From the above diagram, the respondents are more effective to the bank future.

In SBI from 28 respondents gave response towards yes 64.29% more than no 35.71% for providing suggestion.

In ICICI bank from 22 respondents some of them make suggestion 59.09% no for 40.91%.

In BOI from 20 respondent want to give suggestion 40.80% and 60% respondent does not give any suggestion.

In Axis bank from 30 respondents gave of 70% and no for 80% suggestion.

Interpretation:-

We are also interpreting that, 70.21% respondent give suggestion to Axis & 64.29% respondent give suggestion to SBI; both are in competition for improvement their feature by the suggestions.


Q-10) are the banks customer care services efficient?

Name of banks

Yes No

SBI 39.29% 60.71%BOI 54.55% 45.45%ICICI 45.00% 65.00%AXIS 73.33% 26.67%

39.29%

54.55%

45.00%

73.33%

60.71%

45.45%

65.00%

26.67%

SBIBOIICICIAXIS

Analysis:-

From the above diagram we measure that customer care service efficiently providing by the bank,

In SBI 39.29% respondents give positive response and 60.71% give negative response.

In BOI 54.55% respondents give positive response and 45.45% give negative response.

In ICICI 45% respondents give positive response and 65% give negative response.

In SBI 73.33% respondents give positive response and 26.67% give negative response.

Interpretation:-

As per the above analysis, SBI and BOI public sector banks are providing less efficiently customer care service than the ICICI and Axis private sector banks.


Q-11) How do you plan to improve your net interest margin and return on assets?

SBI BOI ICICI AXIS

18

4

15

21

10

18

5

9

Interest MarginMarket based bank based

Name of Bank

Analysis:-

From the above diagram respondents gave response for the interest margin and returns on assets,

In SBI respondents said that 18 for market base and 10 response for bank based.

In ICICI bank 4 response against market based and 18 responses against bank based.


Name of banks

Market based bank based


In BOI bank 15 response against market based and 15 responses against bank based.

In Axis bank 21 response against market based and 9 responses against bank based.

Interpretation:-

We are also interpret that 21 respondents and 18 respondent give response against market based of them AXIS & SBI respectively and 10 respondents and 9 respondent give response against bank based of them AXIS & SBI respectively.


Q-12) How do you competition with the sum of old generation banks strengthening their leadership team ?

Name of banks

Lower interest rate

Banking Facility


SBIBOI

ICICIAXIS

0

5

10

15

20

25

30

22

4

16

12

6

18

418

Banking FacitilityLower interest rate

Name of Bank

No

. Of R

esp

on

ses

Analysis:-

From the above diagram respondents gave response for the interest

In SBI respondents said that 22 for lower interest rate and 6 response for banking facility.

In ICICI bank 4 response against lower interest rate and 18 responses against banking facility.

In BOI bank 16 response against lower interest rate and 4 responses against banking facility.

In Axis bank 12 response against lower interest rate and 18 responses against banking facility.

Interpretation:-

As per the above analysis, public banks SBI and BOI providing lower interest rate and public banks ICICI and AXIS bank providing efficiently banking facility .


Q-13) How do you access information concerning employment opportunities?

Media internet word of mouth other0

5

10

15

20

25

30

35

40

118 6

3

8

65

2

6

22

0

15

8

4

3

AXISICICIBOISBI

Analysis:-

From the above diagram we measure that access information concerning opportunities,

In SBI respondents give their response for 11 of media,8 of internet,6 of word of mouth and 3 of other .

In BOI respondents give response for 6 of media 12 of internet, and 2 of word of mouth and no response for other opportunities.

In ICICI respondents give their response for 8 of media,6of internet,5 of word of mouth and 2 of other .

In AXIS respondents give response for 15 of media 8 of internet, and 4 of word of mouth and 3 of other opportunities.


Name of banks

Media internet word of mouth

other


Interpretation:-

We are also interpreting that, in SBI and AXIS bank both are the in compotation for providing enough information related to employment opportunities batter than the ICICI and BOI .

Q-14) since how long are you using the online banking system provided by our bank?


Name of banks

Within one month

1-6 months 6-1 year above 1 year


Within one month 1-6 months 6-1 year above 1 year0

2

4

6

8

10

12

14

8

10

5 5

98

23

10

6

4

0

14

67

3

SBIBOIICICIAXIS

Time Period

No. o

f Res

pons

es

Analyses:-

From the above diagram, the Respondents are mention their use of online banking system provided by a particular bank,

In SBI from 28 Respondents who have using 8 for within a month,10 for 1 to 6 month,5 for 6 to 12 months and 5 for above a year.

In the ICICI from 22 Respondents who have using 9 for within a month,8 for 1 to 6 months, 2 for 6 to 12 months and 3 for above a year.

In BOI from 20 Respondents who have using 10 for within a month,6 for 4 to 6 month,4 for 6 to 12 months and no one for above a year.

In the AXIS from 30 Respondents who have using 14 for within a month,6 for 1 to 6 months, 7 for 6 to 12 months and 3 for above a year.


Interpretation:-

As per the above analysis, private banks ICICI and AXIS banks have more respondents’ for using online banking than the public banks SBI and BOI for longer period and for short period.


Q-15) what is the major purpose for which you use the online banking?

Name of banks

Online Ticket

booking

Online Bill payments

Balance Check

Request for a cheque book


SBI BOI ICICI AXIS0

5

10

15

20

25

30

35

16

10 8 10

6

8

6

15

3

3

5

33

11

3

Request for a cheque bookBalance CheckOnline Bill paymentsOnline Ticket booking

Name of Bank

No.

of R

espo

nses

Analyses:-

As per the above diagram we mention the major purpose of online banking providing by the banks,

In SBI form 28 respondents 16 for online ticket booking, 6 for bill payments 3 for balance check and 3 for request for checkbook.

In ICICI form 22 respondents 10 for online ticket booking, 8 for bill payments 3 for balance check and 1 for request for checkbook.

In SBI form 20 respondents 8 for online ticket booking, 6 for bill payments 5 for balance check and 1 for request for checkbook.


In AXIS form 30 respondents 10 for online ticket booking, 15 for bill payments 3 for balance check and 2 for request for checkbook.

Interpretation:-

As per the above analysis, the major purpose for using online banking service through the public banks SBI and BOI are more preferred than the private bank ICICI and AXIS bank.


Q-16) Have you ever used the third party transaction of the online banking?

Name of banks

Yes No


SBI BOI ICICI AXIS0

2

4

6

8

10

12

14

16

18

20 18

78

19

10

1314

11

YesNo

Analysis:-

From the above diagram, the respondents give response yes or no for the used the third party transfers of online banking,

In SBI from 28 respondents are give 18 response for positive and 10 for negative for third part transfer.

In BOI from 20 respondents are give 7 response for positive and 13 for negative for third part transfer.

In ICICI from 22 respondents are give 8 response for positive and 14 for negative for third part transfer.


In Axis from 30 respondents are give 19 response for positive and 11 for negative for third part transfer.

Interpretation:-

As per the above analysis, mostly respondents gave response in fever of ICICI bank and SBI bank which are both in competition and BOI and ICICI also have competition for the use of third party transfer of the online banking.


Q-17) do you think the third party transfer system in particular and the entire online banking website provides you enough security?

Name of banks

Yes No


SBI BOI ICICI AXIS0

2

4

6

8

10

12

14

16

18

20

10

16

8

1818

4

12 12

YesNo

Analysis:-

From the above diagram respondent gave that,

In SBI 10 responses for positive and 18 responses negative for enough security of online banking website.

In BOI 16 responses for positive and 4 responses negative for enough security of online banking website.

In ICICI 8 responses for positive and 12 responses negative for enough security of online banking website.


In Axis 18 responses for positive and 12 responses negative for enough security of online banking website.

Interpretation:-

As per the above analysis, private banks ICICI and AXIS bank have batter enough security for online banking website than the public banks SBI and BOI banks for the enough security of online banking website.


Q-18) Have you ever visited your bank branch since the time you started using online banking?

Name of banks

Yes No


34%

17%

26%

23%

YesSBI BOI ICICI AXIS

23%

26%

15%

36%

No1 2 3 4

Analysis:-

From the above diagram respondent gave that,

In SBI 16 responses for positive and 12 responses negative for visiting their bank branch since started using online banking.

In BOI 8 responses for positive and 14 responses negative for visiting their bank branch since started using online banking.

In ICICI 12 responses for positive and 8 responses negative for visiting their bank branch since started using online banking.

In Axis 11 responses for positive and 19 responses negative for visiting their bank branch since started using online banking.


Interpretation:-

As per the above analysis, the respondents give response in fever of SBI and AXIS bank more positive for visiting at the time of using online banking than the BOI and ICICI for visiting bank branch of using online banking.


Conclusion

We have analyzed the reports of all the four banks, state bank of India,

ICICI bank, axis bank, bank of India from that analysis we wish to

conclude that all the four banks are competitive of each other.

From the study we learnt how to study the annual report of the banks in

detail and how to find relative and useful information from that.

We have studied various ratios on the basis of CAMEL model and tried

to interpret the same. We learnt many things from this project, which

would be very useful in our future study.

We have also mention the various different ratio performance of all to

types of banking sector include of SBI, BOI, ICICI, AXIS the ratio

performance of bank like capital adequacy ratio, Debt equity ratio,

Advances to access ratio government securities total ratio and net non

performing ratio etc.

An analysis all information about all the ratio and analysis banking facility

in the banking sector how the customer satisfied by the public and

private banking facility in the exiting banking sector.

We have also make a primary survey through the questioner for

satisfying our cp’s objectives.


Documents

capstone project on banking