The document compares public sector banks, like SBI, with private sector banks, such as ICICI, highlighting their roles in India's economic development and the differences in their operations and service offerings. Public sector banks are primarily government-controlled and focus on serving all sections of society, while private sector banks tend to prioritize customer service and short-term interests. The findings suggest that customers generally have more trust in public sector banks, though ICICI is making strides to compete through technological advancements.

1. PUBLIC SECTOR
v/s
PRIVATE SECTOR
BANKS

2. INTRODUCTION:
Banking Sector plays an important role in economic development of a country.
Banks mobilize the savings of community into productive channels.
The banking system of India is featured by a large network of bank branches,
serving many kinds of financial services of the people. The State Bank of India is
one of the leading bank of public sector in India. ICICI Bank is second largest and
leading bank of private sector in India.

3. RBI : The Reserve Bank of India is India's Central Banking Institution,
under which every transaction is monitored.
It’s foremost role is to regulate the issue of Bank Notes and, keeping of
reserves with a view to securing the monetary stability in India.
It is the Bank to banks. All commercial banks i.e. Public sector and Private
sector banks operate under RBI.

4. PUBLIC SECTOR BANKS:
 The major part of stake or equity is held by the government.
 The government controls the bank.
 The main motive is the benefit of the people and providing services.
 The decisions are generally in the interest of the public.
 They provide services to all sections of the society.

5. PRIVATE SECTOR BANKS:
 The greater part of stake or equity lies in the hands of private shareholders.
 The interest rates of private banks are generally slight costly as compared to
public sector banks.
 They are known for better customer services and investment opportunities.
 A private bank mainly focuses on short term interest.

6. Public v/s Private
PARAMETER PRIVATE SECTOR BANKS PUBLIC SECTOR BANKS
Processing Fee
Paper work, efficiency and
turnaround time
Interest rates fluctuation
Prepayment
charges/period/amount

7. Comparison of products & services in both
the sectors(1)
• SBI
Women: SuperShakti Account
Stree Shakti Tractor Loan (launched on 12th
June, 2014)
Stree Shakti Scheme-Loans to Women
Entrepreneur
Children:
Pehla Kadam(2015)
Pehli Udaan(2015)
• ICICI
Women: Advantage Women Savings Account
Women's Debit Card
Children: Young Star (Minor Under
Guardianship Account)
Smart Star (Minor Self Operated Account)
Bank@Campus
Child Education Plan

8. Comparison of products & services in both
the sectors(2)
• SBI
Senior Citizens: SBI Reverse mortgage
loan
NRI: NRE Savings Bank Account.
NRI-Car Loan Schemes.
NRI home Loans
• ICICI
Senior Citizens: Life Plus Senior
Citizens Account
Senior Citizens Savings Scheme, 2004
Senior Citizen Savings Account
NRI: NRE (Non–Resident External)
Fixed Deposit Account

9. Comparison of products & services in both
the sectors(3)
• SBI
Agriculture:
Agriculture banking.
Multipurpose agri-gold loan.
Special campaigns with attractive
concessions.
• ICICI
Farmer Finance
Micro Banking
Tractor loan

10. Domain wise Analysis(1)
• Women:
SBI focused more on rural women and women who wanted to start new
ventures. It also gives 2 free accounts for the kids.
ICICI provides services that would fascinate the women in higher class by
providing them discounts on various goods and services and attracting them
by providing them good features for the ease of shopping.
Not more focused on rural women development.

11. Domain wise Analysis(2)
• Children:
Both the kinds of banks have same kinds of products and services:
Both have same two kind of accounts:
Joint with a guardian
That can be run independently
Also both the banks have facilities for student loans.
• When we went to SBI for survey we were also told that there are awards for students in
various institutions and that also includes scholarship facilities according to the t&c.

12. Domain wise Analysis(3)
• SME:
Here is where a private sector can prove to be better than public, There isn’t
much difference between the products given by both of them . ICICI has
better services that have been proven to be very helpful to the new
entrepreneurs to start a new venture rather then SBI. THE SME
DIALOUGE and SME TOOLKIT are two services that have made a
difference by their success in guiding new entrepreneurs by various activities.

13. Domain wise Analysis(4)
• Senior Citizens
While finding the products for both, they were similar up to a great extent
but when we personally went to the banks we found that ICICI provided
better services for gave more privileges to the senior citizen. Eg. There is a
separate desk for them, they don’t have to wait in the queue, on the other
hand there is a common token system for all.

14. Domain wise Analysis(5)
• Agriculture
Here is where the private sector actually fails. Though both the banks provide
as much as loans/ services for farmers, SBI works not just for profit making
but for the upliftment of poor farmers. For eg. Both the banks provide loans
on tractors but SBI provides that loans to farmer even if he has less then 2
acres of land where as icici doesn’t!

15. FINANCIAL ANALYSIS
 Operating Profit (in crores)
 Advances (in crores)
 Reserves and Surplus (in crores)
 Total Deposits (in crores)
 No. of Employees
 No. of domestic branches
 Interest Income to Total Income (%)
 Interest Expenses to Total Income (%)
 Net Interest Income
 Total Income (in crores)
Considering the following parameters, comparison between ICICI and SBI with the figures (data)
for the different years:

16. The profit earned from a firm’s normal core business operations. This value does not
include any profit earned from the firm’s investments (such as earnings from firms in
which the company has partial interest) and the effects of interest and taxes.
 Operating Profit
Figure 1 - Operating Profit (in crores)

17. Advances are the credit facility granted by the bank. In other words it is the amount
borrowed by a person from the Bank. It is also known as Credit granted where the money
is distributed and recovered.
 Advances
Figure 2 – Advances (in crores)

18. Figure 3 – Reserves and Surplus (in crores)
Figure 4 – Total Deposits (in crores)

19. Figure 5 – No. of domestic branches
Figure 6 - No of Employees

20. Interest Income to Total Income shows the proportionate contribution of interest income
in total income. Banks lend money in the form of loans and advances to the borrowers and
receive interest on it. This receipt of interest is called interest income.
 Interest Income to Total Income
Figure 7– Interest Income to Total Income

21. Interest Expenses to Total Expenses reveals the expenses incurred on interest in proportion to total
expenses.
Banks accepts deposits from savers and pay interest on these accounts. This payment of interest is
known as interest expenses.
Total expenses include the amount spent in the form of staff expenses, interest expenses, overhead
expenses and other operating expenses etc.
 Interest Expenses to Total Expenses
Figure 8– Interest Expenses to Total Expenses

22. Interest is both an expense and a revenue stream.
It is the difference between interest earned and interest paid, and is commonly tracked by
banks and other institutions that lend money.
 Net Interest Income
Figure 9 - Net Interest Income (in crores)

23. The total income indicates the rupee value of the income earned during a period. The
higher value of total income represents the efficiency and good performance.
Total income includes interest income, non-interest income and operating income
 Total Income
Figure 10 – Total Income

24.  The share of interest expenses in total expenses higher in ICICI (63.36 %) as compare
to SBI (59.99 %) and the proportion of interest income to total income was higher in
case of SBI(84.49 % ) as compared to ICICI (78.84%), which shows that people prefer
ICICI to invest their savings and SBI to take loans & advances.
 Also, through higher profit we can conclude that ICICI has shown comparatively better
operational efficiency than SBI.
 Deposits in SBI were continuously increased. However deposits in ICICI were
decreased (with a declining trend) till 2009-10 but these were increased in the
subsequent years. In case of SBI Advances were continuously increased (with a
decreasing trend) with the combined growth rate of (108.16 %),
 ICICI has suffered with funds or have avoided providing advances through 2007-08 to
2009-10, but now we can see that the bank has recovered.
Findings and Conclusions

25. Hence, on the basis of the above study or analysis banking customer has more trust on the
public sector banks as compared to private sector banks but through our primary research
we have also found that ICICI is trying to compete with SBI.
ICICI has won back to back awards for the best bank in new technological advancements.
Lastly, apart from the analysis interpreted from the figures (real data), we have known that
RBI has a norm for all the banks. According to this norm for every 4 branches opened by a
Bank, one branch has to be a Rural Branch. This indicates that RBI has guided even the
private banks to take up the responsibility of overall development and welfare of the
economy.
Findings and Conclusions

26. ACKNOWLEDGEMENT
• SBI Bank Manager, Mr. Nilesh Kathad
(Branch – opposite Gujarat University)
• ICICI Assistant Manager, Shrikanth Eswarappa
(Branch – JMC House)

27. REFERENCES
Data has been found through the help of the following sites and primary research:
 https://www.icicicareers.com/icici_career/home.aspx?X
 http://www.icicibank.com/aboutus/invest-relations.page?
 http://www.icicibank.com/aboutus/annual.page?
 http://www.icicibank.com/aboutus/qfr.page?#toptitle
 https://www.sbi.co.in/portal/documents/44589/6136037/Final+ANALYST+PPT+Q3FY15.p
df/fec74707-0060-40f4-82c1-854a07591539
 http://www.icicibank.com/interest-rates.page?
 https://www.sbi.co.in/portal/web/investor-relations/investor-relations
 https://www.sbi.co.in/portal/web/investor-relations/results

28. ALLOCATION OF WORK
o Primary Research
 SBI : Miloni, Mayank, Nihar
 ICICI : Manthan, Mohana, Netra
o Secondary Research
 SBI : Nidhi
 ICICI : Miloni
 RBI and Public and Private: Nihar,
Manthan
o Analysis and Graphs: Mayank, Mohana,
Netra

29. TEAM MEMBERS
• MANTHAN SHAH 131025
• MAYANK JOBANPUTRA 131026
• MILONI MEHTA 131027
• MOHANA SARAF 131028
• NETRA PATHAK 131029
• NIDHI MEHTA 131030
• NIHAR MEHTA 131031