A COMPARATIVE STUDY OF PUBLIC AND PRIVATE SECTOR BANKS IN SEHORE

Shri Vaishnav Institute of Management

SYNOPSIS OF Major Research Project Submitted to Devi Ahilya Vishwavidyalaya Toward Partial Fulfillment Award Of Master of Business Administration 2009-2011

Guided By

Submitted By Ashish upadhyay M.B.A. 4th sem

PROPSED CHAPTER PLAN

INTRODUCTION LITERATURE REVIEW RATIONALE OF STUDY OBJECTIVE AND SCOPE OF STUDY RESEARCH METHODOLOGY INTRODUCTION TO CONTENT OF ANALYSES WEBLIOGRAPHY

INTRODUCTION
India firmly established itself amongst the fastest growing economies in the world. We are living in a fast changing world System has undergone huge changes in response to the changes that have been taking place in social ,political and economic environments, a sound financial system touching every aspect of economic activities is a pre-requisite of a vibrant and developing economy which is continuously creating opportunities for business activities Banking has traditionally remained a protected industry .Regulated deposits and lending rates and restrictions enabled comfortable spreads .A combination of developments has compelled bankers to change the old way of doing the business .These include among other technological advancements ,intermediation pressure arising from liberalized financial market place, increased emphasis on shareholder value and microeconomic pressures. Indian banking sector is under going a huge change under the process of churning, mergers, acquisition & consolidation. The project analyses the banking industry in a comprehensive manner, the study is able to enumerate only the broad aspect of the enormous investment opportunities available in the overall banking sector is full of unlimited opportunities for those who are interested in safe & regular income. Public viz State bank of India & private bank viz. ICICI Bank have been taken analysis of two banks.

State Bank of India

The State Bank of India, the countrys oldest Bank and a premier in terms of balance sheet size, number of branches, market capitalization and profits is today going through a momentous phase of Change and Transformation the two hundred year old Public sector behemoth is today stirring out of its Public Sector legacy and moving with an agility to give the Private and Foreign Banks a run for their money.

The bank is entering into many new businesses with strategic tie ups Pension Funds, General Insurance, Custodial Services, Private Equity, Mobile Banking, Point of Sale Merchant Acquisition, Advisory Services, structured products etc each one of these initiatives having a huge potential for growth. The Bank is forging ahead with cutting edge technology and innovative new banking models, to expand its Rural Banking base, looking at the vast untapped potential in the hinterland and proposes to cover 100,000 villages in the next two years. It is also focusing at the top end of the market, on whole sale banking capabilities to provide Indias growing mid large Corporate with a complete array of products and services. It is consolidating its global treasury operations and entering into structured products and derivative instruments. Today, the Bank is the largest provider of infrastructure debt and the largest arranger of external commercial borrowings in the country. It is the only Indian bank to feature in the Fortune 500 list. The Bank is changing outdated front and back end processes to modern customer friendly processes to help improve the total customer experience. With about 8500 of its own 10000 branches and another 5100 branches of its Associate Banks already networked, today it offers the largest banking network to the Indian customer. The Bank is also in the process of providing complete payment solution to its clientele with its over 21000 ATMs, and other electronic channels such as Internet banking, debit cards, mobile banking, etc. With four national level Apex Training Colleges and 54 learning Centers spread all over the country the Bank is continuously engaged in skill enhancement of its employees. Some of the training programme are attended by bankers from banks in other countries. The bank is also looking at opportunities to grow in size in India as well as internationally. It presently has 82 foreign offices in 32 countries across the globe. It has also 7 Subsidiaries in India SBI Capital Markets, SBICAP Securities, SBI DFHI, SBI Factors, SBI Life and SBI Cards - forming a formidable group in the Indian Banking scenario. It is in the process of raising capital for its growth and also consolidating its various holdings.

Throughout all this change, the Bank is also attempting to change old mindsets, attitudes and take all employees together on this exciting road to Transformation. In a recently concluded mass internal communication programme termed Parivartan the Bank rolled out over 3300 two day workshops across the country and covered over 130,000 employees in a period of 100 days using about 400 Trainers, to drive home the message of Change and inclusiveness. The workshops fired the imagination of the employees with some other banks in India as well as other Public Sector Organizations seeking to emulate the programme.

ICICI Bank ICICI Bank is India's second-largest bank with total assets of Rs. 3,634.00 billion (US$ 81 billion) at March 31, 2010 and profit after tax Rs. 40.25 billion (US$ 896 million) for the year ended March 31, 2010. The Bank has a network of 2,528 branches and 6,000 ATMs in India, and has a presence in 19 countries, including India. 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 specialised subsidiaries in the areas of investment banking, life and non-life insurance, venture capital and asset management. The Bank currently has 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. ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and the National Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE).

REVIEW OF LITERATURE

Frontline Dec(2008):C.P.Chandrasekhar . The public ownership of banking of banking decides preventing the system from periodic crisis caused by the behavior encouraged by the pursuit of private profit delivers many growth and welfare benefits. It is therefore granting that the combination of financial crisis and the process of electioneering have forced the government. The achievement of Indian banks after nationalization have been remarkable ,there was a substantial growth in the geographic spread and functional reach of banking ,and with nearly 62000 banks branch in a county and over 35000 where in rural areas Neelima Shankar(2007):The private sector banks have made tremendous strides in the last few years. It was in mid 1990's when Indian banking scenario witnessed the entry of some new private sector banks and in the period between 2002 -2007 these banks have grown by leaps and bounds. They have increased their incomes, asset sizes and outperformed their public sector counterparts in many areas.

RATIONALE OF STUDY
The importance of banking industry in the pace of economic development has been stressed form time to time by the economic thinkers & progressive bankers .The banking industry is not untouched with the wave of investments. A proper & comprehensive study of the industry with a comparison of public & private sector banks for a clearer picture to the investors & customers. Indian banking sector is under going a huge change under the process of churning, mergers, acquisition & consolidation. The project analyses the banking industry in a comprehensive manner, the study is able to enumerate only the broad aspect of the enormous investment opportunities available in the overall banking sector is full of unlimited opportunities for those who are interested in safe & regular income.

OBJECTIVE AND SCOPE OF STUDY

To study the bank sector that is largely availed by the customer To study the current trends and growth patterns of the banking industry. To study the present and future potential of banking industry To compare the performance of public and private sector banks. To study what do people expect in the new era of banking

RESEARCH METHODOLOGY
Research methodology is systematically solving the research problem. In it we study the various steps that are taken by researches along with the logic behind them. He has to specify very clearly & precisely what decisions he selects & why he selects them so what others can evaluate them also. Stages in the research process. Problem definition Research design Collecting data Processing and analyzing data Drawing conclusion and preparing a report Sample plan: Sample (public sector banks SBI and Bank of India and private sector banks ICICI and IDBI) Sample size- 25 individuals Types of sampling- simple random sampling Geographic area covered- Sehore

Method of data collection: Secondary data collection-Bank websites, annual reports, magazines, journals and bulletin. Primary data collection-Questionnaire Data analyses: Z test Beta

INTRODUCTION TO CONTENT OF ANALYSES

Investment is employment of funds on assets with the aim of earning income or capital appreciation .Investing in one type of stock is much more riskier than investing in small amount in different stocks. Building optimal portfolio requires analyses of risk associated with each & every stock so as to minimize the risk associated with investment. The intrinsic value of the share depends on various factors. The earning of the company ,growth rate ,& the risk exposure of the company has a direct bearing on the price of the shares .The risk associated is consist of two components the systematic which is external & uncontrollable & affect the market as whole & unsystematic risk ,the factors are specific ,unique & related to particular industry or company. Economic analyses: This level of economic activities has an impact in many ways due to changes in economy the industry shows positive and negative growth. This can be visualized through various parameters for banking industry. These are Gross domestic product. Saving and investment. Inflation. Interest Rate. Balance of Payment.

Technical analyses: In it we study the stock price movement of security market ,on its bases we draw primary & secondary trends ,moving average is used as technical indicators. It smoothens out short-term fluctuations &charts are major analytical tools for this analysis. Dow Theory

Beta

Webliography
www.sbiindia.com www.icicibank.com. www.rbi.com www.scribd.com www.document.com

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