Format

APROJECT REPORT

ON

A COMPARATIVE STUDY OF LOAN SERVICES OF SBI AND ICICI BANK

Towards Partial Fulfilment

Of The Requirement for the Award of the Degree Of

“BACHELOR OF BUSINESS ADMINISTRATION”

(B.B.A)

BATCH (2011-2014)

SUBMITTED TO:- SUBMITTED BY:-

Mr.Lalit Goyal Ahmer Tariq (Assistant Professor at BFIT) BBA 5TH SEM

(Internal Guide) Enrolment No- G01101500

BABA FRID INSTITUTE OF TECHNOLOGY

Suddhowala, Dehradun, (U.K.)

1

DECLARATION

The project work embodied in this report entitled, “A comparative study of loan services of

SBI & ICICI Bank” has been carried out by me at Department of Management Studies, Baba

Farid Institute of Technology Dehardun, HNB Garhwal University, Uttarakhand under the

supervision of MR.Lalit Goyal ( ASSISTANT PROF. BFIT DUN.).

I hereby declare that this work is original and has not been submitted in part or full for any

other degree or diploma of any other University.

Ahmer Tariq

BBA 5TH SEM

BFIT DEHRADUN

2

ACKNOWLEDGEMENTI am sincerely thankful to all those people who had given me any kind of assistance

and there precious time to make the project report. This project work entitled as A

comparative study of loan services of SBI & ICICI Bank.

I would hereby make most of the opportunity by expressing my sincere thanks to

faculties of Baba Farid Institute of Technology for guiding me through out my

projectduration. Their teaching and support gave me conceptual understanding and

clarity of comprehension which ultimatily made the job more easy. Credit also goes

to All my friends who encouraged me through continuous support. I want to express

my special thanks to our faculty MR.Lalit Goyal ( ASSISTANT PROF. BFIT

DUN.) whose guidance & motivation is the most important since I concieved the

project idea.

Last of all but not the least I would like to acknowledge my gratitude to the

Respondents without whom this survey would have been not completed successfully.

Place : Ahmer Tariq

BBA 5TH SEM

Date : Enrollment No.: G01101500

3

BFiT Group of InstitutionsDepartment of Management Studies

Dehradun-Uttarakhand

Lalit Goyal(Assistant Professor)

CERTIFICATE OF ORIGINALITY

This is to certify that the Project Report entitled “A comparative study of loan services of SBI

& ICICI Bank” submitted to HNB Garhwal University (A Central University) in partial

fulfillment of the requirement for the award of the degree of BACHELOR OF BUSINESS

ADMINISTRATION (BBA), is an authentic and original work carried out by Mr Ahmer

Tariq., Enrolment No: G01101500 under my guidance.

The matter embodied in this project is genuine work done by the student and has not been

submitted whether to this University or to any other University/ Institute for the fulfillment of

the requirements of any course of study.

4

d

……………………………………….…

Signature of the Guide

Date: …………………..

…………………………………………

Director

Date: …………………..

……………………………………….…

Signature of the Student

Date: …………………..

Name and Address of the Student

……………………………………………………………………………………………………………………………………………………………………………………………………………………

Enrolment no: G01101500

CONTENTS

SN CHAPTER NAME PAGE NOs.

1 INTRODUCTION 10

2. REVIEW OF LITERATURE 33

3. OBJECTIVES 38

4. RESEARCH METHODOLOGY 40

5. DATA ANALYSIS 43

6. FINDINGS 88

7. CONCLUSION 91

8. LIMITATIONS 93

9. REFERENCES 95

10. ANNEXURE 97

5

List of Table

Table No. Details Page No.

1. Bank wise 44

2. Income Group 45

3. Designation 46

4. Loan 47

5. Source of Information 48

6. Qualification 49

7. Age (in years) 50

8. Dealing with bank (in years) 51

9. The website of the bank provides all the relevant information about

loan. 50

10. ATMs of the bank are easily available and in operation all round the

clock. 53

11. The transactional website of the bank facilitates the internet banking

insurance services. 54

12. The transactional website of the bank facilitates

the brokerage services. 55

13. The transactional website of the bank facilitates the commercial

business services. 56

14. The transactional website of the bank facilitates the loan services. 58

15. The transactional website of the bank facilitates the small business

services. 59

16. The transactional website of the bank facilitates the aggregation

services. 60

17. The transactional website of the bank facilitates the portal services.61

18. Bank and its associates provide all true and meaningful information.62

19. Bank constantly keeps me in touch through mails, e-mails and

catalogues. 63

20. Self help documents and website are as effective as per my

expectations.64

21. The information provided on the bank's portal about loan services is

enough for an individual to find the necessary aid to apply for the loans.

6

65

22. The delivery of the loan services is unique and matches my

expectations. 67

23. The loans are sanctioned easily. 68

24. The paper work and other necessary formalities are done by the bank

with convenience. 69

25. The interest rate charged by the bank is as per my expectation. 70

26. The types of loans provided by my bank are as per my expectations.71

27. The bank provides the facility to apply for loan services online.72

28. The bank officials are highly co-operative during the necessary process

while applying for loans. 73

29. The interest rate charged on various loan is nominal. 74

30. Service staffs possess sound knowledge about the loan services.75

31. Bank intimates the status of problem resolution. 76

32. The bank has established a unit specifically charged with directing and

developing the loan schemes as per industry trends/ current scenario.77

33. The bank authorities care to listen to the queries and meet my personal

needs. 79

34. The bank provides financial security and confidentiality. 80

35. I am satisfied with the services provided by bank as promised. 81

36. I am satisfied by the employee's behaviour of showing consistently

courteousness towards me. 82

37. I am satisfied by the bank's services of providing the product that best

suit me. 83

38. I am satisfied by the overall service quality of my bank. 84

39. Procedure of repayment of loan is easy. 85

40. I would suggest other people to take loan from my bank. 86

41. Your bank gives you any discount upon loan services. 87

.

7

List of figures

8

Table No. Details Page No.

1. Bank wise 44

2. Income Group 45

3. Designation 46

4. Loan 47

5. Source of Information 48

6. Qualification 49

7. Age (in years) 50

8. Dealing with bank (in years) 51

9. The website of the bank provides all the relevant information about

loan. 52

10. ATMs of the bank are easily available and in operation all round the

clock. 53

11. The transactional website of the bank facilitates the internet banking

insurance services. 54

12. The transactional website of the bank facilitates

the brokerage services. 55

13. The transactional website of the bank facilitates the commercial

business services. 56

14. The transactional website of the bank facilitates the loan services. 58

15. The transactional website of the bank facilitates the small business

services. 59

16. The transactional website of the bank facilitates the aggregation

services. 60

17. The transactional website of the bank facilitates the portal services.61

18. Bank and its associates provide all true and meaningful information.62

19. Bank constantly keeps me in touch through mails, e-mails and

catalogues. 63

20. Self help documents and website are as effective as per my

expectations.64

21. The information provided on the bank's portal about loan services is

enough for an individual to find the necessary aid to apply for the loans.

65

9

22. The delivery of the loan services is unique and matches my

expectations. 67

23. The loans are sanctioned easily. 68

24. The paper work and other necessary formalities are done by the bank

with convenience. 69

25. The interest rate charged by the bank is as per my expectation. 70

26. The types of loans provided by my bank are as per my expectations.71

27. The bank provides the facility to apply for loan services online.72

28. The bank officials are highly co-operative during the necessary process

while applying for loans. 73

29. The interest rate charged on various loan is nominal. 74

30. Service staffs possess sound knowledge about the loan services.75

31. Bank intimates the status of problem resolution. 76

32. The bank has established a unit specifically charged with directing and

developing the loan schemes as per industry trends/ current scenario.77

33. The bank authorities care to listen to the queries and meet my personal

needs. 79

34. The bank provides financial security and confidentiality. 80

35. I am satisfied with the services provided by bank as promised. 81

36. I am satisfied by the employee's behaviour of showing consistently

courteousness towards me. 82

37. I am satisfied by the bank's services of providing the product that best

suit me. 83

38. I am satisfied by the overall service quality of my bank. 84

39. Procedure of repayment of loan is easy. 85

40. I would suggest other people to take loan from my bank. 86

41. Your bank gives you any discount upon loan services. 87

10

CHAPTER1Introduction

INTRODUCTION

The word ‘Bank’ has been derived from the French word ‘Banco’ which means a bench or a

money exchange table. It is so called because during the olden days the European money

lenders or money changer used to show a huge heap of coins of different countries on

benches or tables for the purpose of lending or exchanging.

11

Bank is a financial institution that deals with individual, firm or company’s money in the

form of deposits, advances and other related services. A bank accepts money from the people

in the form of deposits which are usually repayable on demand or after the expiry of a fixed

period of time. It gives safety to the deposits of its customers. It also acts as a guardian of

funds of its customers.

A bank lends out money in the form of loans, which maybe personal loan, education loan,

home loan, car loans, etc to those who require it for different purposes. A bank provides easy

payment and withdrawal facility to its customers in the form of cheque, ATM, drafts, etc. It

also brings bank money in circulation. This money is in the form of cheques, drafts, etc.

A bank acts as a connecting link between borrowers and lenders of money. Banks collect

money from those who have surplus money and give the same to those who are in need of

money. It helps those people, who are in need of money, to fulfil their needs and desire by

providing different types of loan services to the money borrower. Interest is paid along with

the loan at the time of returning the loan1.

LOANS

Loan is a type of debt that is provided to the people who are in the need of money. People

pay interest along with the amount of loan taken from the banks. Loan is entails the

redistribution of all financial assets between the seeker and borrower of fund over a time, like

the entire debts instrument.

The amount of money in a loan, which the borrower initially receiver from the lender is

called principal and it’s obligated to pay bake equal amount of money to the seeker at a

later time .The amount or money which is paid back to the lender in regular period of the

time and on regular instalments in the same amount.

In general term, a loan is given at a cost, which is referred to as interest on the debt and it

provides benefit in the form of incentive to the lender engage in the loan.

Some of the obligation and restriction is enforced by the contract in the case of legal loan.

And it’s also place the borrower under additional restrictions known as loan covenants.

1

12

All the financial institutions such as banks act as provider of loans to the needy. For other

institutions, issuing of debt contracts such as bonds is a typical source of funding.

Types of loans

There are several types of loans provided by banks to the people who are in the need of

money. The different types of loans are presented below:

Secured Loan

The loan in which the borrower pledges some assets as security is known as secured loan. A

mortgage loan is a very common type of debt instrument, used by many individuals to

purchase house. In this arrangement, the money is used to purchase the property. The

financial institution, however, is given security — a lien on the title to the house — until the

mortgage is paid off in full. If the borrower defaults on the loan, the bank would have the

legal right to repossess the house and sell it, to recover sums owing to it.

Unsecured Loan

Unsecured loans are monetary loans that are not secured against the borrower's assets. These

may be available from financial institutions under many different marketing packages:

credit card debt

personal loans

bank overdrafts

credit facilities or lines of credit

corporate bonds (may be secured or unsecured)

The interest rates applicable to these different forms may vary depending on the lender and

the borrower. These may or may not be regulated by law.

Interest rates on unsecured loans are nearly always higher as compared to secured loans,

because an unsecured lender's options for alternative against the borrower in the event of

default are severely limited. Thus, a higher interest rate reflects the additional risk that in the

event of insolvency, the debt may be uncollectible.

Demand Loan

13

The loans that are of short term in nature and do not have fixed dates for repayment and carry

a floating interest rate which varies according to the prime rate are known as demand loan.

Demand loans may be unsecured or secured.

Subsidized Loan

A subsidized loan is a loan on which the interest is reduced by an explicit or hidden subsidy.

It refers to a loan on which no interest is accrued while a student remains enrolled in

education. Otherwise, it may refer to a loan on which an artificially low rate of interest (or

none at all) is charged to the borrower. An unsubsidized loan is a loan that gains interest at a

market rate from the date of payment2.

Introduction to Indian Banking

An economy without a sound and effective banking system cannot be a healthy economy.

The banking system of India should be hassle free as well as well equipped to meet the new

challenges posed by technology and other external as well as internal factors.

In the last three decades India’s banking system has made several outstanding achievements.

There have been several establishments of banks both in rural and urban areas. This is one of

the main reasons of India’s growth process.

The government’s regular policy for Indian bank since 1969 has paid rich dividends with the

nationalization of 14 major private banks of India.

The first bank in India, through conservative, was established in 1786 i.e. The General Bank

of India and Bank of Hindustan in 1770. The oldest bank in existence is State Bank of India

being established as Bank of Calcutta in 1806, which later was known as Bank of Bengal.

This was one of the three presidencies banks, other two being the Bank of Bombay and Bank

of Madras, which were established under the Charter of British East India Company. These

three banks emerged in the year 1921 to become the Imperial Bank of India, which later

become the State Bank of India in 1955.

From 1786 up till today, the journey of Indian Banking System can be classified into three

phases. They are:

2

14

I. Phase I: 1786-1969.

II. Phase II: Nationalization of Indian Banks and up to 1991 prior to Indian Banking

Sector Reform.

III. Phase III: New phase of Indian Banking System with the advent of Indian Financial

and Banking Sector Reforms after 1991.

The above phases have been explained in detail in the following:

Phase I

The General Bank of India was set up in the year 1786. The other banks were Bank of

Hindustan and Bank of Bengal. The East India Company established Bank of Bengal (1806),

Bank of Bombay (1804) and Bank of Madras (1843)as an independent unit and called them

presidency Banks. These three banks were merged in 1921 as Imperial Bank of India was

established, which started as private shareholders banks, mostly Europeans shareholders.

In 1865 Allahabad Bank was established and first time Punjab National Bank Ltd. was set up

in 1894 with headquarters at Lahore. Between 1885 and 1913, Bank of India, Central Bank of

India, Bank of Baroda, Canara Bank, Indian Bank and Bank of Mysore were set up. Reserve

Bank of India came in 1935.

During the first phase the growth was very slow and ban also experienced periodic failure

between 1913 and 1948. There were approximately 1100 banks mostly small. To streamline

the functioning and activities of commercial banks, the government of India came up with the

banking Companies Act, 1949 which was later change to banking regulation act 1965 (Act

No .23 of 1965).Reserve Bank of India was vested with extensive power the supervision of

banking in India as the Central Banking Authority. (Gupta, 2009)

Phase II

Government took major steps in the Indian Banking Sector Reform after independence. In

1955, it nationalized Imperial Bank of India with extensive banking facilities on a large scale

especially in rural and semi urban areas. It formed State bank of India to act as the principal

agent of RBI and to handle banking transactions of the Union and State Governments all over

the country .Seven banks forming subsidiary of State Bank of India were nationalized on 19 th

July 1959.

15

In 1969, major process of nationalization was carried out. It was the effort of the Prime

Minister of India, Mrs. Indira Gandhi 14 major commercial banks in the country was

nationalized.

Second phase of nationalization in Indian Banking Sector Reform was carried out in 1980

with 6 more banks. This step brought 80% of the banking segment in India under the

government ownership.

The following are the steps taken by the Government of India to regulate Banking Institutions

in the country.

1949 Enactment of Banking Regulation Act.1955 Nationalization of State Bank of India.1959 Nationalization of SBI subsidiaries. 1961 Insurance cover extended to deposit.1969 Nationalization of 14 major banks.1971 Creation of credit guarantee corporation.1975 Creation of regional rural banks.1980 Nationalization of 6 banks with deposits over 200 crores.

After the nationalization of branches of the public sector banks in India rose to approximately

800%and deposits and advances took a huge jump by 11,000%. Banking in the sunshine of

Government ownership gave the public implicit faith and immense confidence about the

sustainability of these institutions.

Phase III

This phase has introduced many more products and facilities in the banking sector in its

reforms measures. In 1991, under the chairmanship of M. Narsimham, a committee was set

up by his name which worked for the liberalization of banking practices. The country is

flooded with foreign banks and their ATM stations. Efforts are being made to give a

satisfactory service to customers. Phone banking and net banking is introduced. The entire

system becomes more convenient and swift. Time is given more importance than money.

The financial system of India has shown a great deal of resilience. It is sheltered from any

crisis triggered by any external macro-economic shock as other East Asian Countries

suffered. This is all due to a flexible exchange rate regime, the foreign reserves are high, the

16

capital account is not yet fully convertible and banks and their customers have limited foreign

exchange exposure (Gupta, 2009).

STATE BANK OF INDIA (SBI):

State Bank of India (SBI) is India's largest commercial bank. SBI has a vast domestic

network of over 10000 branches and commands one-fifth of deposits and loans of all

scheduled commercial banks in India. The corporate centre of SBI is located in Mumbai. The

bank boasts of having as many as 14 local head offices and 57 Zonal Offices, located at major

cities throughout India.

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.

The State Bank Group includes a network of eight banking subsidiaries and several non-

banking subsidiaries offering 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 Saurashtra (SBS).

State Bank of Travancore (SBT).

Today, State Bank of India (SBI) has spread its arms around the world and has a network of

branches spanning all time zones. SBI's International Banking Group delivers the full range

17

of cross-border finance solutions through its four wings - the Domestic division, the Foreign

Offices division, the Foreign Department and the International Services division.

INDUSTRIAL CREDIT AND INVESTMENT CORPORATION OF INDIA (ICICI)

ICICI Bank is India's largest bank in private sector banks. ICICI Bank has a network of about

1544 branches and extension counters and over 4816 ATMs. ICICI Bank offers a wide range

of banking products and financial services to corporate and retail customers through a variety

of delivery channels and through its specialized subsidiaries and affiliates in the areas of

investment banking, life and non-life insurance, venture capital and asset management. It is

also the India’s largest credit card issuer3.

ICICI Bank set up its international banking group in fiscal 2002 to cater to the cross border

needs of clients and leverage on its domestic banking strengths to offer products

internationally. ICICI Bank currently has subsidiaries in the United Kingdom and Canada,

branches in Singapore and Bahrain and representative offices in the United States, China,

United Arab Emirates, Bangladesh and South Africa.

MAJOR PLAYERS

The financial sector in India has become stronger in terms of capital and the number of

customers. It has become globally competitive and diverse aiming, at higher productivity and

efficiency. Exposure to worldwide competition and deregulation in Indian financial sector has

led to the emergence of better quality products and services. Reforms have changed the face

of Indian banking and finance. The banking sector has improved manifolds in terms of capital

adequacy, asset classification, profitability, income recognition, provisioning, exposure

limits, investment fluctuation reserve, risk management, etc.

TOP 10 PLAYERS IN BANKING & FINANCE

State Bank of India

HDFC bank

Citibank

ICICI Bank

Punjab National bank

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18

http://www.managementparadise.com/forums/

http://www.managementparadise.com/forums/

UTI Bank

Hongkong & Shanghai Banking Corp.

Kotak Mahindra Bank

Sundaram Bank

Oriental Bank of Commerce

PROFILE OF THE ORGANIZATION

PROFILE OF STATE BANK OF INDIA

State Bank of India is the largest state-owned banking and financial services company in

India. The Bank provides banking services to the customer. In addition to the banking

services, the Bank through their subsidiaries, provides a range of financial services, which

include life insurance, merchant banking, mutual funds, credit card, factoring, security

trading, pension fund management and primary dealership in the money market. The Bank

operates in four business segments, namely Treasury, Corporate/ Wholesale Banking, Retail

Banking and Other Banking Business. The Treasury segment includes the investment

portfolio and trading in foreign exchange contracts and derivative contracts. The Corporate/

Wholesale Banking segment comprises the lending activities of Corporate Accounts Group,

Mid Corporate Accounts Group and Stressed Assets Management Group. The Retail Banking

segment consists of branches in National Banking Group, which primarily includes personal

banking activities, including lending activities to corporate customers having banking

relations with branches in the National Banking Group. SBI provides a range of banking

products through their vast network of branches in India and overseas, including products

aimed at NRIs. The State Bank Group, with over 16,000 branches, has the largest banking

branch network in India. The State bank of India is the 10th most reputed company in the

world according to Forbes. The bank has 156 overseas offices spread over 32 countries. They

have branches of the parent in Colombo, Dhaka, Frankfurt, Hong Kong, Johannesburg,

London and environs, Los Angeles, Male in the Maldives, Muscat, New York, Osaka,

Sydney, and Tokyo. They have offshore banking units in the Bahamas, Bahrain, and

Singapore, and representative offices in Bhutan and Cape Town. State Bank of India was

incorporated in the year 1955.4

4

19

PROFILE OF INDUSTRIAL CREDIT AND INVESTMENT CORPORATION OF

INDIA (ICICI)

ICICI Bank Ltd is a major banking and financial services organization in India. The Bank is

the second largest bank in India and the largest private sector bank in India by market

capitalization. They are a publicly held banking company engaged in providing a wide range

of banking and financial services including commercial banking and treasury operations. The

Bank and their subsidiaries offers a wide range of banking and financial services including

commercial banking, retail banking, project and corporate finance, working capital finance,

insurance, venture capital and private equity, investment banking, broking and treasury

products and services. They offer through a variety of delivery channels and through their

specialised subsidiaries in the areas of investment banking, life and non-life insurance,

venture capital and asset management. The Bank has a network of 2,035 branches and about

5,518 ATMs in India and presence in 18 countries. They have subsidiaries in the United

Kingdom, Russia and Canada, branches in 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. Our UK

subsidiary has established branches in Belgium and Germany. The Bank's equity shares are

listed in India on Bombay Stock Exchange and the National Stock Exchange of India Limited

and their American Depositary Receipts (ADRs) are listed on the New York Stock Exchange.

The Banks is the first Indian Bank listed on New York Stock Exchange. ICICI Bank Ltd was

incorporated in the year 1994 as a part of the ICICI group with the name ICICI Banking

Corporation Ltd.5

COMPANY HISTORY

HISTORY OF SBI

The evolution of State Bank of India can be traced back to the first decade of the 19th

century. It began with the establishment of the Bank of Calcutta in Calcutta, on 2 June 1806.

The bank was redesigned as the Bank of Bengal, three years later, on 2 January 1809. It was

5

20

the first ever joint-stock bank of the British India, established under the sponsorship of the

Government of Bengal. Subsequently, the Bank of Bombay (established on 15 April 1840)

and the Bank of Madras (established on 1 July 1843) followed the Bank of Bengal. These

three banks dominated the modern banking scenario in India, until when they were

amalgamated to form the Imperial Bank of India, on 27 January 1921.

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 takeover of the Imperial Bank of

India, and integrating with it, the former state-owned or state-associate banks. Subsequently,

an Act was passed in the Parliament of India in May 1955. As a result, the State Bank of

India (SBI) was established 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

State-associated banks as its subsidiaries.

The State Bank of India emerged as a pacesetter, with its operations carried out by the 480

offices comprising branches, sub offices and three Local Head Offices, inherited from the

Imperial Bank. Instead of serving as mere repositories of the community's savings and

lending to creditworthy parties, the State Bank of India catered to the needs of the customers,

by banking purposefully. The bank served the heterogeneous financial needs of the planned

economic development6.

HISTORY OF ICICI

6

21

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

only project finance to a diversified financial services group offering a wide variety of

products and services, both directly and through a number of subsidiaries and affiliates like

ICICI Bank. 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 and two of its wholly-owned retail finance subsidiaries, ICICI Personal Financial

Services Limited and ICICI Capital Services Limited, with ICICI Bank. The merger was

approved by shareholders of ICICI and ICICI Bank in January 2002, by the High Court of

Gujarat at Ahmedabad in March 2002, and by the High Court of Judicature at Mumbai and

the Reserve Bank of India in April 2002. Consequent to the merger, the ICICI group's

financing and banking operations, both wholesale and retail, have been integrated in a single

entity7.

7

22

LOANS OF STATE BANK OF INDIA

PARTICULARS PERSONAL LOAN HOME LOAN BUSINESS

LOAN

CAR LOAN LOAN

AGAINST

PROPERTY

EDUCATIONAL LOAN

Loan Amount Minimum:

Rs.24,000/- in metro

and urban

centres,Rs.10,000/- in

rural/semi-urban

centres. Maximum :

12 times Net Monthly

Income for salaried

individuals and

pensioners subject to

a ceiling of Rs.10 lacs

Depending

upon the

income and

repaying

capacity

Upto Rs 5 crore There is no

upper limit for

the amount of a

car loan. A

maximum loan

amount of 48

times of Net

Monthly

Income or 4

times of Net

Annual Income

can be

sanctioned.

Upto Rs. 1

crore

For studies in India, maximum

Rs. 10 lacs; Studies abroad,

maximum Rs. 20 lacs

Interest Rate 8.5% above Base

Rate floating,

currently 18.5% p.a

10.75% to

11.25% p.a.

(depending

12.50-13.00% 11.25% to

11.75% per

annum

14.25 to

15.50%

12% p.a.-13.50% p.a; 0.5%

concession for girls

23

upon the

amount)

Tenure up to 48 months Maximum 30

years or up to

the age of 70

years

Maximum 5

years

Up to 84

Months

Maximum 10

years

Repayment will commence one

year after completion of course

or 6 months after securing a job,

whichever is earlier; Repayment

period: 5-7 years

Pre Payment

Charges

No prepayment

penalties

Nil Not provided No pre-payment

charges

No Pre-

Payment

Penalties

No prepayment penalties

Service Charges Processing Charges:

2%-3% of loan

amount

0.25% of the

loan amount,

minimum

Rs.1000/- for

less than 25

lacs. Above

Rs.25 Lacs and

upto Rs.75 Lacs

is Rs.6500/-.

Above 75 Lacs

Rs.10000/-

Processing

charges:

1% of the loan

amount

Processing

Charges: 0.51%

of Loan amount

No Hidden

costs or

administrative

charges.

Processing Fee: No processing

fee/ upfront charges for Studies

in India

Deposit of Rs. 5000/- for

education loan for studies abroad

which will be adjusted in the

margin money

24

Salaried Self Salarie

d

Self

Self

Salaried Self Salar

ied

Self Salaried Self

Age Minimum

21 Years

Minimu

m 22

Years

18 to 70 years Age criteria not

provided

21-65 Years Maximum 60

years

Co-Applicants should meet the

age criteria

Income

Rs. 2,00,000 p.a

Availability of

sufficient,

regular and

continuous

source of

income for

servicing the

loan repayment

Income criteria

not provided

Net Annual

Income Rs.

250,000/- and

above

Rs.

1440

00

per

annu

m

Rs.

15000

0 per

annum

Co-Applicants Minimum Net

Monthly Income will be

considered

Job Experience 1 Year in

current

Job /

Professio

n

2 Years

in

current

Business

Job experience

not provided

Job experience

not provided

2 Years 3

Year

s

Job

experience not

provided

Co-

Applicants

Minimum 2

years in

employment

and

minimum 1

year in the

current

Co-Applicants

Experience will be

considered

25

organization

Residence Proof 2 Years Residence proof

not provided

Residence proof

not providedValid

Residence proof

valid

residence

proof

Information Not Available

ID Proof Passport Copy/

Voters ID card/

Driving

Licence/Copy of

PAN Card

PAN Card/

Voters ID/

Passport/

Driving License

PAN card/voters

ID/

passport/driving l

icense

Copy of

passport /Voters

ID card/PAN

card

PAN

card/voters

ID/

Passport/Drivi

ng

License/Any

other valid

proof

Copy of

passport

/voters ID

card/PAN

card of both

the Student

and Co-

Borrower

A copy of passport

/voters ID

card/PAN Card of

both the Student

and Co-Borrower

Address Proof Passport /Ration

card/Voter

ID/Driving

license/Last 2 month

Electricity bill /Last 2

month Landline

Telephone Bill

Recent

Telephone Bill/

Electricity Bill/

Property tax

receipt/

Passport/

Voters ID

Recent telephone

bill/electricity

bill/property tax

receipt/passport/v

oters ID

Passport/Voters

ID/Driving

License/Latest

Electricity

bill/Latest

Landline

Telephone

Bill/Any other

Valid Address

Recent

telephone

bill/electricity

bill/property

tax

receipt/passpo

rt/voters ID

Copy of any one of the following

(Self Attested), Passport/Ration

card/Voter ID/Driving

license/Electricity bill (not more

than 2 months old)/Landline

Telephone Bill (not more than 2

months old).

26

proof

DOB Proof Birth Certificate or

10th Class Passing

Certificate

10th class

certificate

10th class

certificate

Information not

available

10th class

certificate/DO

B Certificate

Birth

Certificate

or 10th

Class

Passing

Certificate.

Birth Certificate

or 10th Class

Passing

Certificate.

LOANS OF ICICI

PARTICULARS PERSONAL

LOAN

HOME

LOAN

BUSINESS

LOAN

CAR LOAN LOAN AGAINST PROPERTY EDUCATIONAL

LOAN

LOAN

AMOUNT

Upto Rs 10,

00,000/-

depending on

your eligibility,

income and

repayment

capacity.

80% of the

cost of the

property

Depending on

the business

enterprise and

its

requirements

The minimum

loan amount for

taking a new

car loan is Rs.

1,00,000. The

maximum loan

amount will

depend upon

the price of the

Information not available Abroad India

Mini

mum-

Rs.

5000

0 and

Maxi

mum

Min. - Rs

50000

Max. -

Rs

1000000

27

car, model

variant, profile

of the

customer, etc.

-Rs. 4

lacs

INTEREST

RATE

0% 10.5% to

11.75%

N.A. Information not

available

Information not available

TENURE 12 to 48 months Maximum 20

years

Not

mentioned

Up to 5 Years Maximum 10 years Min. - 1

Yrs.

Max. -

7 Yrs.

Min. - 1

Yrs.

Max. - 5

Yrs.

PRE

PAYMENT

CHARGES

Lower of the

two amounts:

5% on the

principal

outstanding or

Interest

outstanding for

unexpired period

of the loan.

2% on the

principal

outstanding

Not provided Lower of the

two amounts:

5% on the

principal

outstanding or

Interest

outstanding for

unexpired

period of the

loan.

4% of the outstanding loan

amount plus taxes

SERVICE

CHARGES

2% or 3 %

depending on

0.50% -

1.00% of the

0% - 2% plus

applicable

Loan Processing

Charges/Renewal Charges

28

the location of

loan amount +

Origination

Charges of 1.5%

of loan amount

loan amount

or Rs.1500/-

(Rs.2000/- for

Mumbai,

Delhi &

Bangalore),

whichever is

higher +

applicable

Service Tax &

Surcharge

service taxes (Non Refundable) :

0.50% to 1.00% of the loan

amount or Rs.1500/- (Rs. 2000/-

for Mumbai, Delhi & Bangalore),

whichever is higher + applicable

Service Tax & Surcharge

Salaried Self Salarie

d

Self Self Salaried Self Salaried Self salaried Self

AGE 23 - 58

Years

No

Age

Bar.

Minimum 21 Age criteria

not provided

25

years to

58

years

28

years

to 65

years

Minimum 21 years

INCOME Net

monthly

income -

Rs.

Inco

me

Criter

ia

Regular

Source of

Income

should be

Income

criteria not

provided

Gross

annual

salary

of at

Gros

s

annu

al

Income criteria not provided

29

20,000

p.m.

Not

Avail

able

there least

Rs. 2.5

lac per

annum.

inco

me

of at

least

Rs.2

lac

annu

m.

JOB

EXPERIENCE

1 Year

in

current

Job /

Professi

on

N.A. Job

experience not

provided

Job

experience not

provided

More

than 2

years.

More

than

3

years

Job experience not provided

RESIDENCE

PROOF

N/A Infor

matio

n Not

Avail

able

Valid

Residence

proof

Residence

proof not

provided

Information

Not Available

Information Not Available

ID PROOF Passport

/

Driving

Infor

matio

n Not

Passport/PAN

card/Driving

License/Voter

PAN

card/voters

ID/

Passport Copy/

Voters ID card/

Driving

PAN card/Voters

ID/Passport/Driving License/Oth

30

License

/ Voters

ID /

PAN

card

Avail

able

ID Card/Any

other valid ID

proof

passport/drivi

ng license

Licence/Copy

of PAN Card

er Valid proof

ADDRESS

PROOF

Ration

Card /

Utility

bill /

LIC

Policy

Receipt /

Passport

Infor

matio

n Not

Avail

able

Electricity

bill/telephone

bill/Driving

License/Voter

ID

Card/Passport/

Any other

valid Address

Proof

Recent

telephone

bill/electricity

bill/property

tax

receipt/passpo

rt/voters ID

Ration

card/Dr

iving

licence/

Voters

card/pa

ssport

copy/tel

ephone

bill/

electrici

ty

bill/Life

insuran

ce

policy

PAN

Ratio

n

card

Tel/E

lect.

Bill/

Rent

al

agr. /

Pass

port

copy/

Trad

e

licen

ce

/Est./

Recent telephone bill/electricity

bill/property tax

receipt/passport/voters ID/Other

valid proof

31

Card. Sales

Tax

certif

icate

DOB PROOF Birth Certificate or 10th Class Passing Certificate

Infor

matio

n Not

Avail

able

10th class

certificate/cert

ificate of birth

10th class

certificate

Birth

Certificate or

10th Class

Passing

Certificate

10th class certificate/DOB Proof

32

CHAPTER 2Review of Literature

33

REVIEW OF LITERATURE

Kaur (2012) examined the financial performance of SBI and ICICI. Net Profits and Total

Income in SBI was higher as compared to in ICICI over the period of study. People prefer

SBI to deposit their savings and to take loans than ICICI Bank. The financial and operating

efficiency of SBI is better than ICICI. So there is a need to control the operating expenses and

to bring efficiency in the working of ICICI.

Sundaresalingam & Charanya (2012) analysed the customer satisfaction level and obtain

the ways to retain the customers. The study also aimed at bringing out the pull factors of

customer retention that prevails in the bank. The most important reason was customer

satisfaction. These results lead to suggestions for bank managers to consider as to how they

might improve customer retention in competitive banking environment.

Gandhar (2010) made a humble attempt to review the bank’s growth & performance during

the period 2004-10 through a case study of scheduled commercial banks in Chandigarh

(2007). The main conclusion of the study is that the scheme is run purely on commercial

basis and does not offer any soft options for the meritorious and the needy.

Frangos et al. (2012) made a study to identify factors that influence Greek customers’

decision to take out a loan from commercial banks. A number of variables (demographics,

service quality and satisfaction) have been examined as potential factors influencing

customers’ decision to take out a loan. The results show that personal marital status, customer

service, shop design and interest rates are the most significant predictors of taking loans.

Wachter and Calem (1991) studied about the Community Reinvestment and Credit Risk:

Evidence from an Affordable Home Loan Program. This study examined the performance of

home purchase loans originated by a major depository institution in Philadelphia under a

flexible lending program between 1988 and 1994. They examined long-term delinquency in

relation to neighbourhood housing market conditions, borrower credit history scores, and

other factors. They found that likelihood of delinquency declines with the level of

neighbourhood housing market activity. Also, likelihood of delinquency was greater for

borrowers with low credit history scores and those with high ratios of housing expense to

income, and when the property was unusually expensive for the neighbourhood where it was

located.

34

Hellmann et al. (2000) analyzed the relation between competition for deposits and excessive

risk taking in a dynamic model of moral hazards in which banks choose their asset risk and

compete for deposits. They argued that financial liberalization which removed barriers to

entry and branching restrictions and deregulated interest rate ceiling in deposits in US in

1970s and 1980s stimulates excessive risk taking and had a negative impact on prudent bank

behaviour. Removal of interest ceilings resulted in increased competition for deposits which

in turn lowers bank profitability and franchise value. This encouraged moral hazard

behaviour by banks of inducing them to take excessive risk because of the government

deposit insurance. They had option to put their assets to the deposit insurer if they take risks

and lose all their capital.

Bolt and Tieman (2004) investigated the consequences of loan competition among banks for

risk taking behaviour and probability of default in a model in which banks compete by setting

acceptance criteria for granting loans. They found that increased competition resulted in more

risk taking by banks. This was due to the fact that a bank with looser acceptance criteria

attracts more demand and makes higher per period profits, however the quality of the bank’s

loan portfolio deteriorates which in turn causes higher default probabilities and risk of failure.

Therefore increased competition lead to lower profits overall and lower cost of bankruptcy,

thus made banks more prone to risk seeking in order to increase demand.

Micco and Panizza (2005) analyzed several channels through which concentration affected

how bank credit reacted to external shocks. They found that higher concentration might play

a role in smoothing external shocks. They showed that if a higher level of concentration was

associated with higher profitability, banks with some monopoly power were able to build a

buffer that allows them to take more risk and to reduce margins during economic downturns.

Tilak (1996) found many of the arguments made against student loans to be valid in India;

and therefore, he did not lend support in favour of student loans. Student loans, without any

carefully formulated policy, may affect the access and equity adversely. Even American

critics of student loans expressed their apprehensions in this regard while saying that student

loans might lead to inequality of access by restricting participation of (ethnic) minorities in

higher education. He visualized student loans as a method of generating finances for higher

education than a measure to improve access & equity.

35

Nyborg (2003) was of the view that public responsibilities must remain a pillar of European

Higher Education Policies as Europe faces the challenges of the global marketplace and

threat to higher education as a public good. He opined that the public authorities should have

substantial financial responsibility for higher education. Public funds must be supplemented

by private money, but should never be a pretext for the public authorities not to provide

substantial public resources. The public authorities should bear the main responsibility for

ensuring equal opportunities in higher education, including access policies and student

finance. These responsibilities were crucial for making higher education as much of a public

good as possible. While there should be no monopoly on higher education provision, the

public authorities must contribute to the provision of good educational opportunities in

reasonable conditions to ensure that higher education encompasses a wide variety of

disciplines.

Borde (1991) had studied about the “Is the Savings and Loan Industry Facing Extinction?”

This article tells about the saving and loan crisis. Proposed solutions are discussed in the

context of the industry as it currently stands. With a somewhat similar liability structure to

that of banks (mainly short-term deposits), the asset structure of S&Ls was quite different.

Whereas banks assets consist of short-term loans, S&L assets consist largely of long-term

loans, such as home ownership mortgages. Therefore, in the absence of adequate hedging

measures, S&Ls were more vulnerable to interest rate risk, which can lead to lower profits

when interest rates rise.

Yao et al. (2009) studied about the unique paired loan dataset containing information on

multiple conventional conforming mortgage loans of households to examine home equity

extraction decisions over the period 2000-2006. The main question addressed was how much

households borrowed when refinancing their current mortgage debt in a cash-out transaction.

They also provided estimate of the marginal effect of certain borrower characteristics. Results

contributed both to the literature on refinancing behaviour and the role of house price

appreciation in providing funds that might be used for consumer spending or other purposes.

Carey and Nini (2004) studied “Is the Corporate Loan Market globally integrated? A Pricing

Puzzle”. They offered evidence that interest rate spreads on syndicated loans to corporate

borrowers were economically significantly smaller in Europe than in the U.S., other things

equal. Differences in borrower, loan and lender characteristics associated with equilibrium

mechanisms suggested in the literature do not appeared to explain the phenomenon.

36

Borrowers overwhelmingly issued in their natural home market and bank portfolios displayed

significant home "bias." This might explained why pricing discrepancies were not competed

away, but the fundamental causes of the discrepancies remained a puzzle. Thus, important

determinants of loan origination market outcomes remained to be identified, home "bias"

appears to be material for pricing, and corporate financing costs differ in Europe and the U.S.

Marwaha (2010) examined that people relating with PNB were more satisfied with the

interest rate as compared to SBI. SBI people much knew about home loans then PNB. Both

PNB and SBI mostly offered mobile banking services. Processing of SBI was fast then PNB.

After home loan services of PNB was good as compared to SBI. People related with SBI

were more satisfied with the employee behaviour as compared to PNB. People were more

satisfied by SBI for time taken for sanctioning the loan. From all this she concluded that SBI

bank provided good home loan services as compared to PNB and many people were very

satisfied from SBI.

37

CHAPTER 3Objectives

38

OBJECTIVES

To know the consumer perception about the loan services of ICICI and SBI.

To analyze the loan schemes by ICICI and SBI.

To study the satisfaction level of customer SBI and ICICI.

SCOPE OF THE STUDY

This study is analysis and comparisons of loan provided by SBI and ICICI. It is useful in

analyzing the different types of loans provided to the customers and their comparisons. It is

also useful to know perception of the customer regarding the loan services of ICICI and SBI

and their satisfaction level.

39

CHAPTER 4 Research Methodology

40

RESEARCH METHODOLOGY

The present pertains to the study of the Loan Services of SBI and ICICI. Survey methodology

is use to collect the primary data. Geoffrey et al. (2005) has described the utility of survey

based research and have mentioned that a survey could examine the relationship between

gender and people’s attitude towards some issues. When surveys are conducted to determine

relationship they are referred to as co- relation studies. Accordingly the present study has

applied the survey method to collect the relevant data. The primary data was collected

through questionnaire administered to various respondents in Dehradun. The customers, who

have been the customers of the bank and using the loan facility, have been chosen as the

respondents of the survey. The secondary data was collected from various public reports

available national and internationally. It includes portals/websites of SBI and ICICI.

SAMPLING DESIGN

In this study probability sampling has been applied. I have used random sampling, which is

generally used in a population from which a sample is to be drawn and it does not constitute a

homogeneous group. Since the concentration of banking is not distributed uniformly in the

State due to the excess of rural and Hilly areas in the region. Hence, the universe is

heterogeneous. In this case random sampling is used to classify the sample on the basis of

age, income, name, etc.

SAMPLE SIZE

A sample size of 50 respondents has been taken for the current study because it is not

possible to cover the whole universe in the available time period. So it is necessary to take the

sample size. Among 50 respondents 27 respondents were from SBI and 23 from PNB bank.

The sample has been taken in the form of strata based on age, designation, and income group.

TIME FRAME

The study covers the period from June 2012-Dec 2012. The data related to loan services has

been collected. The period from 2000-2012 seems to be a radical transformation in banking

scenario due to large number of players entering into Indian markets.

41

TOOL OF ANALYSIS

The data has been analyzed keeping the objectives of the study in view. The analysis is

finally based on the data of several aspects in tabulated form besides making use of simple

tools of Statistics such as Standard Deviation and possible relationship have been brought out

through analysis whenever necessary feasible.

QUESTIONNAIRE

The data is collected by means of a structured questionnaire with 5 point Likert Scale (1-5).

When responding to a Likert questionnaire items respondents specify their level of agreement

to a statement. The scale is invented by the famous psychologist Rensis Likert. The

questionnaire was based on literature review and developed in a close co-operation with

experts, friends, mentors from diverse research fields. After the questionnaire were

constructed, they were pre-tested with a reference group (Pilot test) who have not participated

in the survey are selected to match the composition of the true sample. The pilot test serves

mainly as a check on the layout and comprehensibility of the questionnaire. Here, each

questionnaire is discussed, analyzed and evaluated in order to make the questionnaire as clear

and easy to complete as possible.

42

CHAPTER 5Data Analysis

43

Data Analysis

On the basis of the data gathered from the various respondents, the responses have been

depicted and analyzed in the following tables.

Demographic Profile

Table 1. Bank wise

Name of bank No. of respondent/s % of respondent/s

SBI 27 54%

ICICI 23 46%

Total 50 100%

Standard Deviation 2

The above table shows that 54% of respondents are the customers of SBI and 46% of the

respondents are the customers of ICICI. The value of standard deviation is 2.

44

SBI ICICI21

22

23

24

25

26

27

28

Figure 1: Bank wise

No. of respondent/s

Table 2. Income Group

Income Group No. of respondent/s % of respondent/s

Nil 7 14%

1-10000 0 0%

10000-25000 19 38%

25000-50000 6 12%

50000 and above 18 36%

Total 50 100%

Standard Deviation 7.35

Nil 1-10000 10000-25000

25000-50000

50000 and above

0

5

10

15

20

Figure 2 : Income Group

No. of respondent/s

The above table shows that 14% of the respondents belong to nil Income Group. No any

respondent belongs to Rs. 1-10000 Income Group. 38% of respondents belong to Rs.10000-

25000 Income Group. 12% of respondents belong to Rs.25000-50000 Income Group. 36% of

respondents belong to Rs.50000 and above Income Group. The value of standard deviation is

7.35.

45

Table 3. Designation

Designation No. of respondent/s % of respondent/s

Student 7 14%

Businessman 9 18%

Service Class 34 68%

Total 50 100%


The above table shows that 14% of the respondents were students. 18% of respondents were

businessmen. 68% of respondents were service class people. The value of standard deviation

is 12.28.

46

Student Businessman Service Class0

5

10

15

20

25

30

35

40

Figure 3: Designation

No. of respondent/s

Table 4. Loan

Loan Taken No. of respondent/s % of respondent/s

Education 13 26%

Car 20 40%

Home 11 22%

Personal 5 10%

Gold 1 2%

Total 50 100%


Education Car Home Personal Gold0

5

10

15

20

25

Figure 4: Loan

No. of respondent/s

The above table shows that 26% of the respondents have taken education loan. 40% of the

respondents have taken car loan. 22% of the respondents have taken home loan. 10% of the

respondents have taken personal loan. 2% of the respondents have taken gold loan. The value

of standard deviation is 6.57.

47

Table 5. Source of Information

Source of information No. of respondent/s % of respondent/s

Newspaper 11 22%

Television 7 14%

Internet 8 16%

Others 24 48%

Total 50 100%


Newspaper Television Internet Others 0

5

10

15

20

25

30

Figure 5: Source of information

No. of respondent/s

The above table shows that 22% of respondents came to know about the loan from

newspaper. 14% of respondents came to know about the loan through television. 16% of

respondents came to know about the loan through internet. Remaining 48% of respondents

came to know about the loan through others sources. The value of standard deviation is 6.8.

48

Table 6. Qualification

Qualification No. of respondent/s % of respondent

PhD 4 8%

Masters 24 48%

Bachelors 11 22%

Diploma 4 8%

Others 7 14%

Total 50 100%


PhD Masters Bachelors Diploma Others 0

5

10

15

20

25

30

Figure 6: Qualification

No. of respondent/s

The above table shows that 8% of respondents were PhD. 48% of respondents were Masters.

22% of respondents were Bachelors. 8% of respondents were Diploma. 14% of respondents

were of other qualification. The value of standard deviation is 7.46.

49

Table 7. Age (in years)

Age (in years) No. of respondent % of respondent

20-30 27 54%

31-40 11 22%

41-50 11 22%

More than 50 1 2%

Total 50 100%


20-30 31-40 41-50 More than 500

5

10

15

20

25

30

Figure 7: Age (in years)

No. of respondent

The above table shows that 54% of respondents were between the ages of 20-30 years. 22%

of respondents were between the ages of 31-40 years. 22% of respondents were between the

ages of 41-50 years. 2% of respondents were above the ages of 50 years. The value of

standard deviation is 9.31.

50

Table 8. Dealing with bank (in years)

Dealing with bank(in years) No. of respondent/s % of respondent

5-10 years 42 84%

11-20 years 8 16%

21-30 years 0 0%

More than 30 years 0 0%

Total 50 100%


5-10 years 11-20 years 21-30 years More than 30 years

0

5

10

15

20

25

30

35

40

45

Figure: 8 Dealing with bank(in years)

No. of respondent/s

The above table shows that 84% of the respondents were dealing with the bank for 5-10

years. 16% of the respondents were dealing with the bank for 11-20 years. No any

respondents were dealing with the bank for 21-30 years and more than 50 years. The value o


51

The website of the bank provides all the relevant information about loan.

Table 9. The website of the bank provides all the relevant information about loan.

Response Extremel

y Agree

Quite

Agree

Quite

Disagree

Extremely

Disagree

Undecided Total

No. of

respondent

25 9 5 8 3 50

% of

respondent

50% 18% 10% 16% 6% 100%


Extrem

ely A

gree

Quite A

gree

Quite D

isagr

ee

Extrem

ely D

isagr

ee

Undecided

0

5

10

15

20

25

30

Figure 9 :The website of the bank provides all the relevant information about loan

No. of respondent

The above table shows that 50% of the respondents extremely agree that the transactional

website of the bank facilitates commercial services. 18% of respondents quite agree that the

transactional website of the bank facilitates the commercial services. 10% of the respondent

quite disagree that the transactional website of the bank facilitates the commercial services.

16% of the respondents extremely disagree that the transactional website of the bank

facilitates commercial services. 6% of the respondents are undecided whether the

transactional website of the bank facilitates commercial services. The value of standard

deviation is 1.33.

52

ATMs of the bank are easily available and in operation all round the clock.

Table 10. ATMs of the bank are easily available and in operation all round the clock.

Response Extremely

Agree

Quite

Agree

Quite

Disagre

e

Extremely

Disagree

Undecided Total

No. of

respondent

24 23 2 2 1 50

% of

respondent

48% 46% 4% 4% 2% 100%


Extrem

ely A

gree

Quite A

gree

Quite D

isagr

ee

Extrem

ely D

isagr

ee

Undecided

05

1015202530

Figure 10: ATMs of the bank are easily available and in operation all round the clock.

No. of respondent





4% of the respondents extremely disagree that the transactional website of the bank facilitates

commercial services. 2% of the respondents are undecided whether the transactional website

of the bank facilitates commercial services. The value of standard deviation is 0.87.

53

The transactional website of the bank facilitates the following services (internet banking

insurance services).

Table 11. The transactional website of the bank facilitates the internet banking

insurance services.

Response Extremely

Agree

Quite

Agree

Quite

Disagre

e

Extremely

Disagree

Undecided Total

No. of

respondent

28 10 4 7 1 50

% of

respondent

56% 20% 8% 14% 2% 100%


Extremely Agree

Quite Agree

Quite Disagree

Extremely Disagree

Undecided0

5

10

15

20

25

30

Figure 11: The transactional website of the bank facilitates the internet banking insurance services.

No. of respondent







54


deviation is 1.17.

The transactional website of the bank facilitates the following services (brokerage

services).

Table 12. The transactional website of the bank facilitates the brokerage services.

Response Extremely

Agree

Quite

Agree

Quite

Disagre

e

Extremely

Disagree

Undecided Total

No. of

respondent

10 18 12 1 9 50

% of

respondent

20% 36% 24% 2% 18% 100%


Extremely Agree

Quite Agree

Quite Disagree

Extremely Disagree

Undecided02468

101214161820

Figure: 12 The transactional website of the bank facilitates the brokerage services.

No. of respondent





55

2% of the respondents extremely disagree that the transactional website of the bank facilitates

commercial services. 18% of the respondents are undecided whether the transactional website

of the bank facilitates commercial services. The value of standard deviation is 1.32.

The transactional website of the bank facilitates the following services (commercial

business services).

Table 13. The transactional website of the bank facilitates the commercial business

services.

Response Extremely

Agree

Quite

Agree

Quite

Disagre

e

Extremely

Disagree

Undecided Total

No. of

respondent

18 14 2 12 4 50

% of

respondent

36% 28% 4% 24% 8% 100%


56

Extrem

ely Agre

e

Quite Agre

e

Quite Disa

gree

Extrem

ely Disa

gree

Undecided

0

5

10

15

20

Figure 13: The transactional website of the bank facilitates the commercial business services.

No. of respondent








deviation is 1.39.

57

The transactional website of the bank facilitates the following services (loan services).

Table 14. The transactional website of the bank facilitates the loan services.

Response Extremely

Agree

Quite

Agree

Quite

Disagre

e

Extremely

Disagree

Undecided Total

No. of

respondent

17 17 7 6 3 50

% of

respondent

34% 34% 14% 12% 6% 100%


58

Extrem

ely A

gree

Quite A

gree

Quite D

isagr

ee

Extrem

ely D

isagr

ee

Undecided

0

5

10

15

20

Figure14: The transactional website of the bank facilitates the loan services.

No. of respondent








deviation is 1.2.

The transactional website of the bank facilitates the following services (small business

services).

Table 15. The transactional website of the bank facilitates the small business

services.

Response Extremely

Agree

Quite

Agree

Quite

Disagre

e

Extremely

Disagree

Undecided Total

No. of 19 10 9 4 8 50

59

respondent

% of

respondent

38% 20% 18% 8% 16% 100%


Extremely Agree

Quite Agree Quite Disagree Extremely Disagree

Undecided0

5

10

15

20

Figure 15: The transactional website of the bank facilitates the small business services.


website of the bank facilitates small business services. 20% of the respondents quite agree

that the transactional website of the bank facilitates small business services. 18% of the

respondents quite disagree that the transactional website of the bank facilitates small business

services. 8% of the respondents extremely disagree that the transactional website of the bank

facilitates small business services. 16% of the respondents are undecided whether the

transactional website of the bank facilitates small business services. The value of standard

deviation is 1.46.

The transactional website of the bank facilitates the following services (aggregation

services).

Table 16. The transactional website of the bank facilitates the aggregation

services.

Response Extremely

Agree

Quite

Agree

Quite

Disagre

e

Extremely

Disagree

Undecided Total

No. of

respondent

19 8 15 3 5 50

60

% of

respondent

38% 16% 30% 6% 10% 100%


Extremely Agree

Quite Agree

Quite Disagree

Extremely Disagree

Undecided02468

101214161820

Figure 16: The transactional website of the bank facilitates the aggrega-tion services.

No. of respondent


website of the bank facilitates aggregation services. 16% of the respondents quite agree that

the transactional website of the bank facilitates aggregation services. 30% of the respondents

quite disagree that the transactional website of the bank facilitates aggregation services. 6%

of the respondents extremely disagree that the transactional website of the bank facilitates

aggregation services. 10% of the respondents are undecided whether the transactional website

of the bank facilitates aggregation services. The value of standard deviation is 1.31.

The transactional website of the bank facilitates the following services (portal services).

Table 17. The transactional website of the bank facilitates the portal services.

Response Extremely

Agree

Quite

Agree

Quite

Disagre

e

Extremely

Disagree

Undecided Total

No. of

respondent

13 15 9 5 8 50

% of 26% 30% 18% 10% 16% 100%

61

respondent


Extremely Agree

Quite Agree

Quite Disagree

Extremely Disagree

Undecided0

2

4

6

8

10

12

14

16

Figure 17: The transactional website of the bank facilitates the portal services.

No. of respondent


website of the bank facilitates aggregation portal services. 30% of the respondents quite agree

that the transactional website of the bank facilitates portal services. 18% of the respondents

quite disagree that the transactional website of the bank facilitates portal services. 10% of the

respondents extremely disagree that the transactional website of the bank facilitates portal

services. 16% of the respondents are undecided whether the transactional website of the bank

facilitates portal services. The value of standard deviation is 1.39.

Bank and its associates provide all true and meaningful information.

Table 18. Bank and its associates provide all true and meaningful information.

Response Extremely

Agree

Quite

Agree

Quite

Disagre

e

Extremely

Disagree

Undecided Total

62

No. of

respondent

14 21 12 3 0 50

% of

respondent

28% 21% 24% 6% 0% 100%


Extremely Agree

Quite Agree

Quite Disagree

Extremely Disagree

Undecided0

5

10

15

20

25

Figure 18: Bank and its associates provide all true and meaningful in-formation.

No. of respondent

The above table shows that 28% of the respondents extremely agree that the bank and its

associates provide all true and meaningful information. 21% of the respondents quite agree

that the bank and its associates provide all true and meaningful information. 24% of the

respondents quite disagree that the bank and its associates provide all true and meaningful

information. 6% of the respondents extremely disagree that the bank and its associates

provide all true and meaningful information. No any respondent is undecided whether the

bank and its associates provide all true and meaningful information. The value of standard

deviation is 0.87.

Bank constantly keeps me in touch through mails e-mails and catalogues.

Table 19. Bank constantly keeps me in touch through mails e-mails and catalogues.

Response Extremely

Agree

Quite

Agree

Quite

Disagre

Extremely

Disagree

Undecided Total

63

e

No. of

respondent

12 30 4 3 1 50

% of

respondent

24% 60% 8% 6% 2% 100%


Extremely Agree

Quite Agree

Quite Disagree

Extremely Disagree

Undecided0

5

10

15

20

25

30

35

Figure 19: Bank constantly keeps me in touch through mails e-mails and catalogues.

No. of respondent

The above table shows that 24% of the respondents extremely agree that the bank constantly

keeps them in touch through mails e-mails and catalogues. 60% of the respondents quite

agree that the bank constantly keeps me in touch through mails e-mails and catalogues. 8% of

the respondents quite disagree that the bank constantly keeps me in touch through mails e-

mails and catalogues. 6% of the respondents extremely disagree that the bank constantly

keeps me in touch through mails e-mails and catalogues. 2% of the respondents are

undecided whether the bank constantly keeps me in touch through mails e-mails and

catalogues. The value of standard deviation is 0.86.

Self help documents and websites are as effective as per my expectations.

Table 20. Self help documents and websites are as effective as per my expectations.

Response Extremely Quite Quite Extremely Undecided Total

64

Agree Agree Disagre

e

Disagree

No. of

respondent

14 23 10 2 1 50

% of

respondent

28% 46% 20% 4% 2% 100%


Extremely Agree

Quite Agree

Quite Disagree

Extremely Disagree

Undecided0

5

10

15

20

25

Figure 20 : Self help documents and websites are as effective as per my expectations.

No. of respondent

The above table shows that 28% of the respondents extremely agree that the self help

documents and websites are as effective as per their expectations. 46% of the respondents

quite agree that the self help documents and websites are as effective as per their

expectations. 20% of the respondents quite disagree that the self help documents and websites

are as effective as per their expectations. 6% of the respondents extremely disagree that the

self help documents and websites are as effective as per their expectations. 2% of the

respondents are undecided whether the self help documents and websites are as effective as

per their expectations. The value of standard deviation is 0.9.

The information provided on the bank's portal about loan services is enough for an

individual to find the necessary aid to apply for the loans.

65

Table 21. The information provided on the bank's portal about loan services is enough

for an individual to find the necessary aid to apply for the loans.

Response Extremely

Agree

Quite

Agree

Quite

Disagree

Extremely

Disagree

Undecided Total

No. of

respondent

15 14 4 15 2 50

% of

respondent

30% 28% 8% 30% 4% 100%


Extremely Agree

Quite Agree

Quite Disagree

Extremely Disagree

Undecided02468

10121416

Figure 21: The information provided on the bank's portal about loan services is enough for an individual to find the necessary aid to apply for

the loans.

No. of respondent

The above table shows that 30% of the respondents extremely agree that the information

provided on the bank's portal about loan services is enough for an individual to find the

necessary aid to apply for the loans. 28% of the respondents quite agree that the information


necessary aid to apply for the loans. 8% of the respondents quite disagree that the information


necessary aid to apply for the loans. 30% of the respondents extremely disagree that the

information provided on the bank's portal about loan services is enough for an individual to

find the necessary aid to apply for the loans. 4% of the respondents are undecided whether

66

the information provided on the bank's portal about loan services is enough for an individual

to find the necessary aid to apply for the loans. The value of standard deviation is 1.3.

The delivery of the loan services is unique and matches my expectations.

67

Table 22. The delivery of the loan services is unique and matches my expectations.

Response Extremely

Agree

Quite

Agree

Quite

Disagre

e

Extremely

Disagree

Undecided Total

No. of

respondent

10 23 16 1 0 50

% of

respondent

20% 46% 32% 2% 0% 100%


The

above table shows that 20% of the respondents extremely agree that the delivery of the loan

services is unique and matches their expectations. 46% of the respondents quite agree that the

delivery of the loan services is unique and matches their expectations. 32% of the

respondents quite disagree that the delivery of the loan services is unique and matches their

expectations. 2% of the respondents extremely disagree that the delivery of the loan services

is unique and matches their expectations. No any respondent is undecided whether the

delivery of the loan services is unique and matches their expectations. The value of standard

deviation is 0.76.

The loans are sanctioned easily.

Table 23. The loans are sanctioned easily.

68

Extremely Agree

Quite Agree

Quite Disagree

Extremely Disagree

Undecided0

5

10

15

20

25

Figure 22: The delivery of the loan services is unique and matches my expectations.

No. of respondent

Response Extremely

Agree

Quite

Agree

Quite

Disagre

e

Extremely

Disagree

Undecided Total

No. of

respondent

24 10 8 8 0 50

% of

respondent

48% 20% 16% 16% 0% 100%


Extremely Agree

Quite Agree

Quite Disagree

Extremely Disagree

Undecided0

5

10

15

20

25

30

Figure 23: The loan is sanctioned easily.

No. of respondent

The above table shows that 48% of the respondents extremely agree that the loan is

sanctioned easily. 20% of the respondents quite agree the loan is sanctioned easily. 16% of

the respondents quite disagree that the loan is sanctioned easily. 16% of the respondents

extremely disagree that the loan is sanctioned easily. No any respondent is undecided whether

the loan is sanctioned easily. The value of standard deviation is 1.13.

69

The paper work and other necessary formalities are done by the bank with convenience.

Table 24. The paper work and other necessary formalities are done by the bank with

convenience.

Response Extremely

Agree

Quite

Agree

Quite

Disagre

e

Extremely

Disagree

Undecided Total

No. of

respondent

15 22 11 2 0 50

% of

respondent

30% 44% 22% 4% 0% 100%


Extremely Agree

Quite Agree

Quite Disagree

Extremely Disagree

Undecided0

5

10

15

20

25

Figure 24 : The paper work and other necessary formalities are done by the bank with convenience.

No. of respondent

The above table shows that 30% of the respondents extremely agree that the paper work and

other necessary formalities are done by the bank with convenience. 44% of the respondents

quite agree the paper work and other necessary formalities are done by the bank with

convenience. 22% of the respondents quite disagree the paper work and other necessary

formalities are done by the bank with convenience. 4% of the respondents extremely disagree

that the loan is sanctioned easily. No any respondent is undecided whether the loan is

sanctioned easily. The value of standard deviation is 0.825.

70

The interest rate charged by the bank is as per my expectation.

Table 25. The interest rate charged by the bank is as per my expectation.

Response Extremely

Agree

Quite

Agree

Quite

Disagre

e

Extremely

Disagree

Undecided Total

No. of

respondent

13 22 11 3 1 50

% of

respondent

26% 44% 22% 6% 2% 100%


Extremely Agree

Quite Agree

Quite Disagree

Extremely Disagree

Undecided0

5

10

15

20

25

Figure 25: The interest rate charged by the bank is as per my expectation.

No. of respondent

The above table shows that 26% of the respondents extremely agree that the interest rate

charged by the bank is as per their expectation. 44% of the respondents quite agree the

interest rate charged by the bank is as per their expectation. 22% of the respondents quite

disagree the interest rate charged by the bank is as per their expectation. 6% of the

respondents extremely disagree that interest rate charged by the bank is as per their

71

expectation. 2% of the respondents were undecided whether the interest rate charged by the

bank is as per their expectation. The value of standard deviation is 0.938.

The types of loans provided by my bank are as per my present needs.

Table 26. The types of loans provided by my bank are as per my present needs.

Response Extremely

Agree

Quite

Agree

Quite

Disagre

e

Extremely

Disagree

Undecided Total

No. of

respondent

25 20 5 0 0 50

% of

respondent

50% 40% 10% 0% 0% 100%


Extremely Agree

Quite Agree

Quite Disagree

Extremely Disagree

Undecided0

5

10

15

20

25

30

Figure: 26 The types of loans provided by my bank are as per my present needs.

No. of respondent

The above table shows that 50% of the respondents extremely agree that the types of loans

provided by their bank are as per their expectations. 40% of the respondents quite agree the

types of loans provided by their bank are as per their expectations. 10% of the respondents

quite disagree the types of loans provided by their bank are as per their expectations. No any

72

respondent is neither extremely disagree nor undecided whether the types of loans provided

by their bank are as per their expectations. The value of standard deviation is 0.66.

The bank provides the facility to apply for loan services online.

Table 27. The bank provides the facility to apply for loan services online.

Response Extremely

Agree

Quite

Agree

Quite

Disagre

e

Extremely

Disagree

Undecided Total

No. of

respondent

12 23 2 5 8 50

% of

respondent

24% 46% 4% 10% 16% 100%


The above table shows that 24% of the respondents extremely agree that the bank provides

the facility to apply for loan services online. 46% of the respondents quite agree that the bank

provides the facility to apply for loan services online. 4% of the respondents quite disagree

that the bank provides the facility to apply for loan services online. 10% of the respondents

extremely disagree that the bank provides the facility to apply for loan services online. 16%

73

Extremely Agree

Quite Agree

Quite Disagree

Extremely Disagree

Undecided0

5

10

15

20

25

Figure 27: The bank provides the facility to apply for loan services online.

No. of respondent

of the respondents are undecided whether the bank provides the facility to apply for loan

services online. The value of standard deviation is 1.37.

The bank officials are highly co-operative during the necessary process while applying

for loans.

Table 28. The bank officials are highly co-operative during the necessary process

while applying for loans.

Response Extremely

Agree

Quite

Agree

Quite

Disagre

e

Extremely

Disagree

Undecided Total

No. of

respondent

23 13 11 3 0 50

% of

respondent

46% 26% 22% 6% 0% 100%


The

above

table

shows

that

46%

of the

respondents extremely agree that the bank officials are highly co-operative during the

necessary process while applying for loans. 26% of the respondents quite agree that the bank

officials are highly co-operative during the necessary process while applying for loans. 22%

74

Extremely Agree

Quite Agree

Quite Disagree

Extremely Disagree

Undecided0

5

10

15

20

25

Figure 28: The bank officials are highly co-operative during the necessary process while applying for loans.

No. of respondent

of the respondents quite disagree that the bank officials are highly co-operative during the

necessary process while applying for loans. 6% of the respondents extremely disagree that the

bank officials are highly co-operative during the necessary process while applying for loans.

No any respondent is undecided whether the bank officials are highly co-operative during the

necessary process while applying for loans. The value of standard deviation is 1.37.

The interest rate charged on various loan is nominal.

Table 29. The interest rate charged on various loan is nominal.

Response Extremely

Agree

Quite

Agree

Quite

Disagre

e

Extremely

Disagree

Undecided Total

No. of

respondent

4 27 5 12 2 50

% of

respondent

8% 54% 10% 24% 4% 100%


Extremely Agree

Quite Agree

Quite Disagree

Extremely Disagree

Undecided0

5

10

15

20

25

30

Figure 29: The interest rate charged on various loan is nominal.

No. of respondent

The above table shows that 8% of the respondents extremely agree that the interest rate

charged on various loan is nominal. 54% of the respondents quite agree that the interest rate

charged on various loan is nominal. 10% of the respondents quite disagree that the interest

rate charged on various loan is nominal. 24% of the respondents extremely disagree that the

75

interest rate charged on various loan is nominal. 4% of the respondent is undecided whether

the interest rate charged on various loan is nominal. The value of standard deviation is 1.06.

Service staffs possess sound knowledge about the loan services.

Table 30. Service staffs possess sound knowledge about the loan services.

Response Extremely

Agree

Quite

Agree

Quite

Disagre

e

Extremely

Disagree

Undecided Total

No. of

respondent

17 12 14 7 0 50

% of

respondent

34% 24% 28% 14% 0% 100%


The above table shows that 34% of the respondents extremely agree that the service staffs

possess sound knowledge about the loan services. 24% of the respondents quite agree that the

76

Extremely Agree

Quite Agree

Quite Disagree

Extremely Disagree

Undecided0

2

4

6

8

10

12

14

16

18

Figure 30: Service staffs possess sound knowledge about the loan services.

No. of respondent

service staffs possess sound knowledge about the loan services. 28% of the respondents quite

disagree that the service staffs possess sound knowledge about the loan services. 14% of the

respondents extremely disagree that the service staffs possess sound knowledge about the

loan services. No any respondent is undecided whether the service staffs possess sound

knowledge about the loan services. The value of standard deviation is 1.06.

Bank intimates the status of problem resolution.

Table 31. Bank intimates the status of problem resolution.

Response Extremely

Agree

Quite

Agree

Quite

Disagre

e

Extremely

Disagree

Undecided Total

No. of

respondent

4 26 4 13 3 50

% of

respondent

8% 52% 8% 26% 6% 100%


Extremely Agree

Quite Agree

Quite Disagree

Extremely Disagree

Undecided0

5

10

15

20

25

30

Figure 31 : Bank intimates the status of problem resolution.

No. of respondent

77

The above table shows that 8% of the respondents extremely agree that the bank intimates the

status of problem resolution. 52% of the respondents quite agree that the bank intimates the

status of problem resolution. 8% of the respondents quite disagree that the bank intimates the

status of problem resolution. 26% of the respondents extremely disagree that the bank

intimates the status of problem resolution.6% of the respondents are undecided whether the

bank intimates the status of problem resolution. The value of standard deviation is 1.06.

The bank has established a unit specifically charged with directing and developing the

loan schemes as per industry trends/ current scenario.

Table 32. The bank has established a unit specifically charged with directing and

developing the loan schemes as per industry trends/ current scenario.

Response Extremely

Agree

Quite

Agree

Quite

Disagre

e

Extremely

Disagree

Undecided Total

No. of

respondent

12 11 16 3 8 50

% of

respondent

24% 22% 32% 6% 16% 100%


78

The

above table shows that 24% of the respondents extremely agree that the bank has established

a unit specifically charged with directing and developing the loan schemes as per industry

trends/ current scenario. 22% of the respondents quite agree that the bank has established a

unit specifically charged with directing and developing the loan schemes as per industry

trends/ current scenario. 32% of the respondents quite disagree that the bank has established a

unit specifically charged with directing and developing the loan schemes as per industry

trends/ current scenario. 6% of the respondents extremely disagree that the bank has

established a unit specifically charged with directing and developing the loan schemes as per

industry trends/ current scenario.16% of the respondents are undecided whether the bank has

established a unit specifically charged with directing and developing the loan schemes as per

industry trends/ current scenario. The value of standard deviation is 0.93.

79

Extremely Agree

Quite Agree

Quite Disagree

Extremely Disagree

Undecided02468

1012141618

Figure 32: The bank has established a unit specifically charged with direct-ing and developing the loan schemes as per industry trends/ current scen-

ario.

No. of respondent

The bank authorities care to listen to the queries and meet my personal needs.

Table 33. The bank authorities care to listen to the queries and meet my personal

needs.

Response Extremely

Agree

Quite

Agree

Quite

Disagre

e

Extremely

Disagree

Undecided Total

No. of

respondent

18 23 5 3 1 50

% of

respondent

36% 46% 10% 6% 2% 100%


80

The above table shows that 36% of the respondents extremely agree that the bank authorities

care to listen to the queries and meet their personal needs. 46% of the respondents quite agree

that the bank authorities care to listen to the queries and meet their personal needs. 10% of

the respondents quite disagree that the bank authorities care to listen to the queries and meet

their personal needs. 6% of the respondents extremely disagree that the bank authorities care

to listen to the queries and meet their personal needs.2% of the respondents are undecided

whether the bank has authorities care to listen to the queries and meet their personal needs.

The value of standard deviation is 0.93.

The bank provides financial security and confidentiality.

Table 34. The bank provides financial security and confidentiality.

Response Extremely

Agree

Quite

Agree

Quite

Disagre

e

Extremely

Disagree

Undecided Total

No. of

respondent

25 20 4 1 0 50

% of

respondent

50% 40% 8% 2% 0% 100%


81

Extremely Agree

Quite Agree

Quite Disagree

Extremely Disagree

Undecided0

5

10

15

20

25

Figure 33: The bank authorities care to listen to the queries and meet my personal needs.

No. of respondent

Extremely Agree

Quite Agree

Quite Disagree

Extremely Disagree

Undecided0

5

10

15

20

25

30

Figure 34: The bank provides financial security and confidentiality.

No. of respondent

The above table shows that 50% of the respondents extremely agree that the bank provides

financial security and confidentiality. 40% of the respondents quite agree that the bank

provides financial security and confidentiality. 8% of the respondents quite disagree that the

bank provides financial security and confidentiality. 2% of the respondents extremely

disagree that the bank provides financial security and confidentiality. No any respondent is

undecided whether the bank provides financial security and confidentiality. The value of


I am satisfied with the services provided by bank as promised.

Table 35. I am satisfied with the services provided by bank as promised.

Response Extremely

Agree

Quite

Agree

Quite

Disagre

e

Extremely

Disagree

Undecided Total

No. of

respondent

28 15 5 2 0 50

% of

respondent

56% 30% 10% 4% 0% 100%


82

Extremely Agree

Quite Agree

Quite Disagree

Extremely Disagree

Undecided0

5

10

15

20

25

30

Figure 35 : I am satisfied with the services provided by bank as promised.

No. of respondent

The above table shows that 56% of the respondents extremely agree that they are satisfied

with the services provided by bank as promised. 30% of the respondents quite agree that they

are satisfied with the services provided by bank as promised. 10% of the respondents quite

disagree that they are satisfied with the services provided by bank as promised. 4% of the

respondents extremely disagree that they are satisfied with the services provided by bank as

promised. No any respondent is undecided whether they are satisfied with the services

provided by bank as promised. The value of standard deviation is 0.82.

I am satisfied by the employee's behaviour of showing consistently courteousness

towards me.

Table 36. I am satisfied by the employee's behaviour of showing consistently

courteousness towards me.

Response Extremely

Agree

Quite

Agree

Quite

Disagre

e

Extremely

Disagree

Undecided Total

No. of

respondent

19 22 6 3 0 50

83

% of

respondent

38% 44% 12% 6% 0% 100%


Extremely Agree

Quite Agree

Quite Disagree

Extremely Disagree

Undecided0

5

10

15

20

25

Figure 36: I am satisfied by the employee's behaviour of showing con-sistently courteousness towards me.

No. of respondent

The above table shows that 38% of respondents extremely agree that they are satisfied by the

employee’s behaviour of showing consistently courteousness towards them. 44% of

respondents quite agree that they are satisfied by the employee’s behaviour of showing

consistently courteousness towards them. 12% of respondents quite disagree that they are

satisfied by the employee’s behaviour of showing consistently courteousness towards them.

6% of respondents extremely disagree that they are satisfied by the employee’s behaviour of

showing consistently courteousness towards them. No any respondent is undecided whether

they are satisfied by the employee’s behaviour of showing consistently courteousness

towards them. The value of standard deviation is 0.85.

I am satisfied by the bank's services of providing the product that best suit me.

Table 37. I am satisfied by the bank's services of providing the product that best suit

me.

Response Extremely

Agree

Quite

Agree

Quite

Disagre

e

Extremely

Disagree

Undecided Total

No. of 22 14 11 3 0 50

84

respondent

% of

respondent

44% 28% 22% 6% 0% 100%


Extremely Agree

Quite Agree

Quite Disagree

Extremely Disagree

Undecided0

5

10

15

20

25

Figure 37: I am satisfied by the bank's services of providing the product that best suit me.

No. of respondent

The above table shows that 44% of the respondents extremely agree that they are satisfied by

the bank’s services of providing the product that best suit them. 28% of the respondents quite

agree that they are satisfied by the bank’s services of providing the product that best suit

them. 22% of the respondents quite disagree that they are satisfied by the bank’s services of

providing the product that best suit them. 6% of the respondents extremely disagree that they

are satisfied by the bank’s services of providing the product that best suit them. The value of


I am satisfied by the overall service quality of my bank.

Table 38. I am satisfied by the overall service quality of my bank.

Response Extremely

Agree

Quite

Agree

Quite

Disagre

e

Extremely

Disagree

Undecided Total

No. of 23 19 7 1 0 50

85

respondent

% of

respondent

46% 38% 14% 2% 0% 100%


The above table shows that 46% of the respondents extremely agree that they are satisfied by

the overall service quality of their bank. 38% of the respondents quit agree that they are

satisfied by the overall service quality of their bank. 14% of the respondents quite disagree

that they are satisfied by the overall service quality of their bank. 2% of the respondents

extremely disagree that they are satisfied by the overall service quality of their bank. No any

respondent is undecided whether they are satisfied by the overall service quality of their

bank. The value of standard deviation is 0.78.

Procedure of repayment of loan is easy.

Table 39. Procedure of repayment of loan is easy.

Response Extremely

Agree

Quite

Agree

Quite

Disagre

Extremely

Disagree

Undecided Total

86

Extremely Agree

Quite Agree

Quite Disagree

Extremely Disagree

Undecided0

5

10

15

20

25

Figure 38: I am satisfied by the overall service quality of my bank.

No. of respondent

e

No. of

respondent

20 16 6 8 0 50

% of

respondent

40% 32% 12% 16% 0% 100%


Extremely Agree

Quite Agree

Quite Disagree

Extremely Disagree

Undecided0

5

10

15

20

25

Figure 39: Procedure of repayment of loan is easy.

No. of respondent

The above table shows that 40% of the respondents extremely agree that procedure of

repayment of loan is easy. 32% of the respondents quite agree that procedure of repayment of

loan is easy. 12% of the respondents quite disagree that procedure of repayment of loan is

easy. 16% of the respondents extremely disagree that procedure of repayment of loan is easy.

No any respondent is undecided whether procedure of repayment of loan is easy. The value

of standard deviation is 1.08.

I would suggest other people to take loan from my bank.

Table 40. I would suggest other people to take loan from my bank.

Response Extremely Quite Quite Extremely Undecided Total

87

Agree Agree Disagre

e

Disagree

No. of

respondent

27 22 1 0 0 50

% of

respondent

54% 44% 2% 0% 0% 100%


Extremely Agree

Quite Agree

Quite Disagree

Extremely Disagree

Undecided0

5

10

15

20

25

30

Figure 40: I would suggest other people to take loan from my bank.

No. of respondent

The above table shows that 54% of respondents extremely agree that they would suggest

other people to take loan from their bank. 44% of respondents quite agree that they would

suggest other people to take loan from their bank. 2% of the respondents quite disagree that

they would suggest other people to take loan from their bank. No any respondent extremely

disagree or is undecided whether they would suggest other people to take loan from their

bank. The value of standard deviation is 0.54.

Your bank gives you any discount upon loan services.

Table 41. Your bank gives you any discount upon loan services.

88

Response Extremely

Agree

Quite

Agree

Quite

Disagre

e

Extremely

Disagree

Undecided Total

No. of

respondent

17 3 9 2 19 50

% of

respondent

34% 6% 18% 4% 38% 100%


The

above table shows that 34% of the respondents extremely agree that their bank gives them

discount upon loan services. 6% of the respondents quite agree that their bank gives them

discount upon loan services. 18% of the respondents quite disagree that their bank gives them

discount upon loan services. 4% of the respondents extremely disagree that their bank gives

them discount upon loan services. 38% of the respondents are undecided whether their bank

gives them discount upon loan services. The value of standard deviation is 1.47.

89

Extremely Agree

Quite Agree

Quite Disagree

Extremely Disagree

Undecided0

2

4

6

8

10

12

14

16

18

20

Figure 41: Your bank gives you any discount upon loan services.

No. of respondent

CHAPTER 6Findings

FINDINGS

90

In this above study there are total 50 respondents out of which 27 respondents are of SBI and

23 respondents of ICICI.

1. The study shows that 38% and 36% of the customers of SBI and ICICI belong to Rs.

10000- Rs. 25000 and Rs. 50000 and above income group, i.e., 19 and 18 out of 50

respondents belong to Rs. 10000- Rs. 25000 and Rs. 50000 and above income group

respectively took maximum number of loans.

2. The study shows that 54% of the customers of SBI and ICICI belong to 20-30 years of

age group, i.e., 27 out of 50 respondents taking loans belong to 20-30 years of age

group.

3. The study shows that 84% of the respondents were dealing with the bank for 5-10

years, i.e., 42 out of 50 respondents, who had taken loans, were dealing with the bank

for 5-10 years.

4. The study shows that 54% of the customers of SBI and ICICI say that they would

suggest other people to take loan from their bank, i.e., 27 out of 50 respondents would

suggest other people to take loan from their bank as they are extremely satisfied with

their bank’s loan facilities.

5. The study shows that only 40% of the customers of SBI and ICICI say that the

procedure for repayment of loan is easy, i.e., only 20 out of 50 respondents are

extremely satisfied with the procedure of loan repayment as the rest find it difficult to

pay back the loan.

6. The study shows that only 36% of the customers of SBI and ICICI extremely agree

that their bank authorities care to listen to their queries, i.e., only 18 out 50

respondents extremely agree that their bank authorities care to listen to the queries

and meet their personal needs.

7. The study shows that 56% of the customers of SBI and ICICI are extremely satisfied

with the services provided by their bank, i.e., 28 out of 50 respondents are extremely

satisfied with the services of SBI and ICICI as they provided the services to their

customers as they have promised.

8. The study show that only 44% of the customers of SBI and ICICI are quite satisfied

with the behaviour of the employees of their bank, i.e., only 22 out of 50 respondents

are quite satisfied with employee’s behaviour as they don’t consistently show

courteous behaviour towards their customers.

91

9. The study shows that only 48% of the customers of SBI and ICICI say that the loans

are sanctioned easily, i.e., 24 out of 50 respondents find it easy to get their loan

sanctioned and the rest finds it difficult.

10. The study shows that 50% of the customers of SBI and ICICI extremely agree that

their bank provides them financial security and confidentiality, i.e., 25 out of 50

respondents extremely agree that their bank provides financial security and

confidentiality as they feel their banks have high level of security and safety.

92

CHAPTER 7Conclusion

CONCLUSION

93

SBI is one of the leading banks of public sector in India. ICICI Bank Ltd. is India's second

largest financial services company and the largest private sector bank in India. The

conclusion of the study is presented in the following points:

1. SBI and ICICI are providing the various types of loans to the customers to help them

meet their needs (Table No. 26, Figure No. 26).

2. People are availing various types of loan from both the banks (Table No. 1, Figure

No. 1).

3. The transactional website of SBI and ICICI provides the various loan services and the

customers are satisfied with it (Table No. 12, Figure No. 12).

4. Majority of customers of SBI mainly avail education loans whereas the customers of

ICICI mostly avail car loans apart from other loans (Table No. 4, Figure No. 4).

5. The customers of SBI avail more loan than that of the customers of ICICI (Table No.

1, Figure No. 1).

6. Most of customers of SBI and ICICI are extremely satisfied with services provided by

their bank as promised (Table No. 35, Figure No. 35).

7. Most of the customer who avail loan from SBI and ICICI says that they would

suggest other people to take loan from their bank (Table No. 40, Figure No. 40).

8. People belonging to service class take maximum number of loans from SBI and ICICI

(Table No. 3, Figure No. 3).

9. Maximum of the people dealing with the bank for 5 to 10 years take loan from SBI

and ICICI (Table No.8, Figure No.8).

94

CHAPTER 8Limitations

95

LIMITATIONS

It should be made clear that research is there to help in decision making and is not a substitute

of decision making. Some of the limitations of my research are:-

1. The study can be much effective if done with a larger sample.

2. Limited time duration (June 2012-Dec 2012) does not allow us to perform the

research with larger universe in comparisons to the adopted one.

3. Financial barrier restrict our study to limited analysis of a data through MS-Excel and

some of the online software available.

4. I can create more valuable research findings if I could access the software SPSS or

SAS.

5. Most of the information relating to the loans of SBI and ICICI were not available as

secondary data.

6. It provides number of facts but it does not provide actionable results.

7. It does not provide the answer to any problem but can only provide a set of

guidelines.

8. The study confines itself to the respondents of “Dehradun” region only. Hence

findings would/ not be relevant to other cities.

9. Some of the respondents do not give the real fact due to leakage of their responses.

96

CHAPTER 9References

97

References

Bolt, W. & Tieman, A. F. (2004). Banking Competition, Risk, and Regulation. IMF Working

Paper, 04/11.

Borde. (1991). Is the Savings and Loan Industry Facing Extinction? The Secured Lender. 47.

Calem, S. P. & Wachter, M. S. (Nov 1, 1999). Community Reinvestment and Credit Risk:

Evidence from an Affordable Home Loan Program. Real Estate Economics, 27.

Available at SSRN: http://ssrn.com/abstract=145360.

Carey, M. & Nini, G. (August 2004). Is the Corporate Loan Market Globally Integrated? A

Pricing Puzzle. FRB International Finance Discussion, Paper No. 813.

Frangos et al. (2012). Factors Affecting Customers’ Decision for Taking out Bank Loans: A

Case of Greek Customers. Journal of Marketing research and Case Studies, 2012, 1-

16.

Gandhar, H. (2010). Educational Loan Schemes of Scheduled Commercial Banks in India:

An Assessment. IJBEMR, 1, 65-91.

Hellmann, T. F., Murdock K., Stiglitz J. (2000). Liberalization, Moral Hazard in Banking and Prudential Regulation: Are Capital Requirements Enough?, American Economic Review, 90, 147-165.

Kaur, R. (2012). To Study the Financial Performance: A Comparative Study of SBI and

ICICI. Academica: An International Multidisciplinary Research Journal, 2(5), 72-90.

Marwaha, K. (2010). Comparative Study of Home Loans of PNB and SBI Bank. Bachelor’s

Thesis, 6-66.

Micco, A. & Panizza, U. (2005). Bank Concentration and Credit Volatility, Central Bank of

Chile Working Papers, 342.

Sundaresalingam, P. & Charanya, M. (2012). A Study on Customer Retention at Canara

Bank Palani. IJEMR, 2(1).

Tilak, J. B. G. (1997). Student Loans in Financing Higher Education in India in Sharma,

Sitaram (ed.), International Encyclopaedia of Higher Education Vol. 6, Cosmo

Publications, 1430-1452.

Yao et al. (2009). Home Equity Extraction by Homeowners: 2000-2006. Journal of Real

Estate Research.

98

http://ssrn.com/abstract=145360

CHAPTER 10Annexure

RESPONDENT’S DETAILS

99

Name

Father’s Name

Name of Bank

Designation

Income Group 1-10000 10000-25000 25000-5000050000 and above

Have you ever taken any loan

Yes No

Type of Loan taken

Source of Information Newspaper Television Internet

Others

Qualification Ph D Masters Bachelors Diploma

Illiterate Others

Age (in Years) 20-30 31-40 41-50 More than 50

Dealing with bank

(in Years)5-10 11-20 21-30 More than 30

Contact No.

E-Mail

I request you to kindly spare few moments out of your precious time to rate your level of agreement on the following issues regarding loan. The study is purely an academic research conducted by HNB Garhwal University to which your identity and views will be kept confidential. Please circle the number from 1 to 5 that best reflects your views.

100

Extremely Agree Quite Agree Quite Disagree Extremely Disagree Undecided

76%-100% 51%-75% 26%-50% 1-25% 0%

1 2 3 4 5

Thanking you in anticipation of your kind co-operation.

101

Questionnaire on Comparative Study of Loan Services of SBI and ICICI

1. The website of the bank provides all the relevant information about loan. 1 2 3 4 5

2. ATMs of the bank are easily available and in operation all round the clock. 1 2 3 4 5

3. The transactional website of the bank facilitates the following services

Internet banking insurance services 1 2 3 4 5

Brokerage services 1 2 3 4 5

Commercial business services 1 2 3 4 5

Loan services 1 2 3 4 5

Small business services 1 2 3 4 5

Aggregation services 1 2 3 4 5

Portal services 1 2 3 4 5

4. Bank and its associates provide all true and meaningful information. 1 2 3 4 5

5. Bank constantly keeps me in touch through mails e-mails and catalogues. 1 2 3 4 5

6. Self help documents and websites are as effective as per my expectations. 1 2 3 4 5

7. The information provided on the bank's portal about loan services is enough for an individual to find the necessary aid to apply for the loans.

1 2 3 4 5

8. The delivery of the loan services is unique and matches my expectations. 1 2 3 4 5

9. The loans are sanctioned easily. 1 2 3 4 5

10. The paper work and other necessary formalities are done by the bank with convenience.

1 2 3 4 5

11. The interest rate charged by the bank is as per my expectation. 1 2 3 4 5

12. The types of loans provided by my bank are as per my present needs. 1 2 3 4 5

13. The bank provides the facility to apply for loan services online. 1 2 3 4 5

14. The bank officials are highly co-operative during the necessary process while applying for loans.

1 2 3 4 5

15. The interest rate charged on various loan is nominal.

16. Service staffs possess sound knowledge about the loan services. 1 2 3 4 5

102

17. Bank intimates the status of problem resolution. 1 2 3 4 5

18. The bank has established a unit specifically charged with directing and developing the loan schemes as per industry trends/ current scenario.

1 2 3 4 5

19. The bank authorities care to listen to the queries and meet my personal needs. 1 2 3 4 5

20. The bank provides financial security and confidentiality. 1 2 3 4 5

21. I am satisfied with the services provided by bank as promised. 1 2 3 4 5

22. I am satisfied by the employee's behaviour of showing consistently courteousness towards me.

1 2 3 4 5

23. I am satisfied by the bank's services of providing the product that best suit me.

1 2 3 4 5

24. I am satisfied by the overall service quality of my bank. 1 2 3 4 5

25. Procedure of repayment of loan is easy. 1 2 3 4 5

26. I would suggest other people to take loan from my bank. 1 2 3 4 5

27. Your bank gives you any discount upon loan services. 1 2 3 4 5

103

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