PERFORMANCE DIFFERENCE BETWEEN PUBLIC SECTOR BANK AND PRIVATE SECTOR BANK: COMPARATIVE STUDY BETWEEN SBI AND ICICI BANK IN INDIA

PERFORMANCE DIFFERENCE BETWEEN PUBLIC SECTOR BANK AND PRIVATE SECTOR BANK: COMPARATIVE STUDY BETWEEN SBI AND ICICI BANK IN INDIA DR. GARGI SRIVASTAVA Vidya Jyoti Eduversity,Derabassi. PUNYO YARING Vidya Jyoti Eduversity,Derabassi. ABSTRACT The banking sector is very important for the economic development of a country. Traditionally the banks worked as finance depositor and finance provider only but presently as the scenario have changed and many policies and other technical changes have become the part of economies therefore now banks also play many roles in the development of economy. The study is an attempt to analyze the financial performance of SBI and ICICI banks. The State Bank of India, popularly known as SBI is one of the leading bank of public sector in India, established in 1 st July 1955. SBI has 14 Local Head Offices and 57 Zonal Offices located at important cities throughout the country. ICICI bank is the second largest, leading bank of private sector in India. The Bank has 2,533 branches and 6,800 ATMs in India. The study is descriptive and analytical in nature. The collected data was secondary in nature and collected from various reports issued by these banks through internet. The comparison of financial performance of these two banks was made on the basis of ratio analysis. The results indicated that the SBI is performing well and financially sound than ICICI Bank. Also the market position of SBI is better than ICICI in terms to earning per share, price ratio per share and dividend payout ratio, but on the other hand ICICI bank is performing well in terms of NPA and provision for NPA in comparison of SBI bank. INTRODUCTION Banking sector is backbone of economy of every country. This sector play very important role in economic development of a country. The finance collected from this sector works in economy as blood works in the body to survive in environment.the banking sector provide various services such as account facility, ATM facility, loan facility, mutual fund facility and many other financial services. These services help a citizen to facilitate his/her work life and private life in many ways. In India the banking sector is witnessed various changes after liberalization and globalization. These changes mould and change the structure of banking system. After globalization many banks has entered in India and has gave tough competition to the existing banks in India. In India few public and few private sector banks were operating since conceptualization of this sector but now they have to face severe competition from the foreign banks to sustain in the market and consequently many amendments were made by these domestic players to attract customers. Though the own country bank factor has played important role in the sustainment of these domestic banks because customers can easily rely on these banks and undoubtedly want to transact and make relations with domestic banks. Due to this reason, presently as well many foreign banks has stepped into our country but still not well established. The new generation is open minded in terms of new change and want to avail new facilities offered by foreign banks therefore preferring the foreign banks over domestic banks and now gradually the way of foreign banks is becoming easier in India. But the present study is focusing on the domestic banks and tries to study the financial performance of domestic banks to present the picture before the masses by comparing the 6

public and private sector banks so that the investors, bankers, customers and government can see the insight of domestic banks to make the relation with these banks and become trustworthy in future. For this purpose one private bank i.e. ICICI and one public sector bank i.e. SBI have been taken to study the financial performance. As SBI is one of the leading public sector banks in India and ICICI is the second largest and leading bank of private sector in India. Apart from this the NPA to advance comparison between these two banks was also made to depict the picture of debtors which has turned to bad debts for these banks. The total income depiction of both banks was also made through graph to show the income earning position of the banks. In addition to this, market test ration was also calculated to present the market position of banks in terms of earning per share, price earning ration and dividend payout ratio. OBJECTIVE OF THE STUDY The primary objective of the study was:- To study the financial performance of SBI and ICICI banks. To find the percentage of debtors turns in to NPA (Bad debts). To explore the relationship between Total Income and PAT (Profit after tax). To study the market position of both the banks. STATE BANK OF INDIA (SBI BANK) PROFILE It has a market share among Indian commercial banks of about 20% in deposits and loans. The roots of the State Bank of India rest in the first decade of 19th century, when the Bank of Calcutta later on renamed the Bank of Bengal, was established on 2 June 1806. The Bank of Bengal was one of three Presidency banks, the other two being the Bank of Bombay (incorporated on 15 April 1840) and the Bank of Madras (incorporated on 1 July 1843). With the result of the royal charters all three Presidency banks were incorporated as joint stock companies and received the exclusive right to issue paper currency in 1861 with the Paper Currency Act. They retained this right till the formation of the Reserve Bank of India. The Presidency banks amalgamated on 27 January 1921, and renamed Imperial Bank of India. The Imperial Bank of India remained a joint stock company. The State Bank of India was constituted on 1st July 1955, pursuant to the State Bank of India Act, 1955 (the "SBI Act") for the purpose of creating a state-partnered and state-sponsored bank integrating the former Imperial Bank of India. In 1959, the State Bank of India (Subsidiary Banks) Act was passed, enabling the Bank to take over eight former state associated banks as its subsidiaries. The State Bank of India's is largest bank, with approximately 9,000 branches in India and 54 international offices. Its Associate Banks have a domestic network of around 4,600 branches, with strong regional ties. The Bank also has subsidiaries and joint ventures outside India, including Europe, the United States, Canada, Mauritius, Nigeria, Nepal, and Bhutan. The Bank has the largest retail banking customer base in India. SUBSIDIARIES OF SBI:- i. State Bank of Bikaner & Jaipur. ii. State Bank of Hyderabad. iii. State Bank of Mysore. iv. State Bank of Patiala. v. State Bank of Patiala. vi. State Bank of Travancore. 7

NSE AND BSE OF SBI BANK NSE BSE SBI BANK 259.75 259.65 CHANGE CHANGE % 1.05 (Updated:10 Oct, 2016, 09:24 AM IST) 0.41% (Updated:10 Oct, 2016, 09:24 AM IST) Source: Financial year report of SBI 2010-11 to 2014-15. BALANCE SHEET FOR SBI BANK PARAMETER MAR 16 ( Cr.) MAR 15 ( Cr.) MAR'14 (Cr.) 8 1.40 (Updated:10 Oct, 2016, 09:25 AM IST) 0.54% (Updated:10 Oct, 2016, 09:25 AM IST) MAR'13 (Cr.) MAR'12 (Cr.) SOURCES OF FUNDS Share warrants & Outstanding Share Capital 776.28 746.57 746.57 684.03 671.04 Total Reserve 1,43,498.16 1,27,691.65 1,17,535.68 98,199.65 83,280.16 Deposits 17,30,722.44 15,76,793.25 13,94,408.50 12,02,739.57 10,43,647.36 Borrowings 2,24,190.59 2,05,150.29 1,83,130.88 1,69,182.71 1,27,005.57 Shareholder's Funds 1,44,274.44 1,28,438.23 1,18,282.25 98,883.69 83,951.21 Other Liabilities & Provisions 1,59,875.57 1,37,698.04 96,926.65 95,405.30 80,915.09 TOTAL LIABILITIES APPLICATION OF FUNDS: Cash and balance with Reserve Bank 1,29,629.33 1,15,883.84 84,955.66 65,830.41 54,075.94 of India Balances with banks and money at call and short notice 37,838.33 38,871.94 47,593.97 48,989.75 43,087.23 Investments Advances Gross Block 4,77,097.28 4,81,758.75 3,98,799.57 3,50,877.51 3,12,197.61 14,63,700.42 13,00,026.39 12,09,828.72 10,45,616.55 8,67,578.89 23,185.78 21,170.45 18,919.38 17,374.54 14,792.33

Less : Accumulated 13,366.62 12,128.65 11,202.92 10,779.03 9,658.67 Depreciation Less : Impairment of Assets Net Block Lease Adjustment Capital Work in Progress Other Assets TOTAL ASSETS 9,819.16 9,041.80 7,716.46 6,595.51 5,133.66 0.00 0.00 0.00 0.20 0.20 570.12 287.37 285.70 409.31 332.68 1,40,408.41 1,02,209.71 43,568.21 47,892.03 53,113.02 22,59,063.03 20,48,079.80 17,92,748.29 15,66,211.27 13,35,519.23 Contingent Liability 9,71,956.01 10,00,627.26 10,17,329.95 9,26,374.07 8,32,605.33 Bills for collection 92,211.65 92,795.25 74,028.42 66,639.54 66,959.85 Source: Financial year report of SBI 2010-11 to 2014-15. PROFIT & LOSS FOR SBI BANK MAR'16 MAR'15 MAR'14 PARAMETERS 9 MAR'13 MAR'12 I. INCOME Interest Earned 1,63,685.31 1,52,397.07 1,36,350.81 1,19,655.10 1,06,521.45 Other Income 28,158.36 22,575.89 18,552.92 16,036.84 14,351.45 Total Income 1,91,843.66 1,74,972.97 1,54,903.72 1,35,691.94 1,20,872.90 II. EXPENDITURE Interest Expended 1,06,803.49 97,381.82 87,068.63 75,325.80 63,230.37 Operating Expenses 41,782.37 38,053.87 35,725.85 29,284.42 26,068.99 PBIDT 43,257.80 39,537.27 32,109.23 31,081.72 31,573.54 Provisions and 29,483.76 20,223.31 15,935.36 11,130.83 13,090.23 Contingencies Profit Before Tax 13,774.04 19,313.96 16,173.88 19,950.89 18,483.31 Taxes 3,823.40 6,212.39 5,282.71 5,845.91 6,776.02 Total 1,81,893.02 1,61,871.40 1,44,012.54 1,21,586.96 1,09,165.61 III. Profit & Loss PAT 9,950.65 13,101.57 10,891.17 14,104.99 11,707.29 Extraordinary Items Profit brought 0.32 0.32 0.34 0.34 0.34

forward Adjusted Net Profit 0.00 0.00 0.00 0.00 5.71 Total Profit & Loss 9,950.65 13,101.57 10,891.17 14,104.99 11,713.00 Appropriations 9,950.98 13,101.90 10,891.51 14,105.32 11,713.34 Equity Dividend (%) Earnings Per Share (in) Book Value (in) Source: Financial year report of SBI 2010-11 to 2014-15. CASHFLOW FOR SBI BANK PARAMETERS Net Profit Before Taxes Adjustments for Expenses & Provisions Adjustments for Liabilities & Assets Cash Flow from operating activities Cash Flow from investing activities Cash Flow from financing activities Effect of exchange fluctuation on translation reserve Net increase/(decrea se) in cash and cash equivalents Opening Cash & Cash Equivalents Cash & Cash Equivalent on Amalgamation / MAR'16 MAR'15 10 MAR'14 MAR'13 MAR'12 13,774.06 19,313.96 16,173.89 19,950.90 18,483.31 34,491.40 24,528.30 20,700.23 15,206.32 17,886.15-29,883.48-11,962.33-11,629.71-11,477.23-56,129.29 11,196.55 27,621.03 14,107.42 21,652.67-28,468.59-3,748.37-3,258.10-3,105.67-1,990.85-1,648.56 4,505.88-2,289.12 3,811.17-3,259.72 2,147.66 757.82 132.34 2,916.55 1,254.90 2,217.10 11,954.05 22,073.81 14,812.92 16,402.10-27,969.49 1,54,755.78 1,32,549.63 1,14,820.16 97,163.17 1,22,874.15 0.00 0.00 0.00 0.00 41.41

Take over / Merger Cash & Cash Equivalent of Subsidiaries under liquidations Translation adjustment on reserves / of cash balances from subsidiaries Effect of Foreign Exchange Fluctuations Closing Cash & Cash Equivalent 1,67,467.66 1,54,755.78 1,32,549.63 1,14,820.16 97,163.17 Source: Financial year report of SBI 2010-11 to 2014-15. RATIO FOR SBI BANK MAR'16 MAR'15 MAR'14 PARAMETERS Operational & Financial Ratios: Earnings Per Share (Rs) 11 MAR'13 12.82 17.55 145.88 206.20 174.46 MAR'12 DPS(Rs) 2.60 3.50 30.00 41.50 35.00 Book NAV/Share(Rs) 185.85 172.04 1,584.34 1,445.60 1,251.05 Margin Ratios: Yield on Advances 11.18 11.72 11.27 11.44 12.28 Yield on Investments 9.95 8.09 8.58 8.07 7.38 Cost of Liabilities 5.46 5.46 5.52 5.49 5.40 NIM 2.70 2.84 2.83 2.93 3.39 Interest Spread 5.72 6.26 5.75 5.95 6.88 Performance Ratios:

ROA(%) 0.46 0.68 0.65 0.97 0.91 ROE(%) 7.30 10.62 10.03 15.43 15.72 ROCE(%) 6.19 8.68 8.82 11.61 13.18 Efficiency Ratios: Cost Income Ratio 49.13 49.04 52.67 48.51 45.23 Core Cost Income Ratio 52.21 51.44 54.33 49.41 44.52 Operating Costs to Assets 1.85 1.86 1.99 1.87 1.95 Capitalization Ratios: Tier 1 ratio Tier 2 ratio CAR Valuation Parameters: PER(x) 15.16 15.21 1.31 1.01 1.20 PCE(x) 12.95 14.02 11.71 9.30 11.06 Price / Book(x) 1.05 1.55 1.21 1.43 1.67 Yield(%) 1.34 1.31 1.56 2.00 1.67 EV / Net Sales(x) 2.29 2.65 2.39 2.60 2.51 EV / Core EBITDA(x) 8.67 10.23 10.16 10.00 8.48 EV / EBIT(x) 3.11 3.47 3.16 3.26 3.27 EV / CE(x) 0.17 0.20 0.18 0.20 0.20 M Cap / Sales 0.92 1.31 1.05 1.18 1.32 Growth Ratio: Core Operating Income Growth 3.39 11.63 11.17 2.40 33.10 Operating Profit Growth -19.16-10.12-28.03-23.75-31.94 Net Profit Growth -24.05 20.30-22.78 20.48 41.66 BVPS Growth 8.03-89.14 9.60 15.55 22.24 Advances Growth 12.59 7.46 15.70 20.52 14.65 EPS Growth(%) -26.96-87.97-29.25 18.19 34.05 Liquidity Ratios: Loans / Deposits(x) 0.13 0.13 0.13 0.14 0.12 12

Total Debt / Equity(x) 0.07 0.07 0.06 0.05 0.05 Current Ratio(x) 0.28 0.31 0.29 0.29 0.30 Quick Ratio(x) 12.95 13.01 13.13 14.07 12.17 Total Debt / M cap(x) Net NPA in Rs. Million Source: Financial year report of SBI 2010-11 to 2014-15. ICICI BANK-PROFILE ICICI Bank is second largest and leading bank of private sector in India. It s headquarter is in Mumbai, India. According to Forbes State Bank of India is the 29th most reputed company in the world. The Bank has 2,533 branches and 6,800 ATMs in India. In 1998 ICICI Bank launched internet banking operations. The Bank offers a wide range of banking products and financial services to the corporate and retail customers. It also provides services in the areas of venture capital investment banking, asset management and life and non-life insurance. ICICI Bank's equity shares are listed in India on Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) and its American Depositary Receipts (ADRs) are also listed on the New York Stock Exchange (NYSE).ICICI Bank limited is 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 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 specialized subsidiaries in the area of investment banking, life and non-life insurance, venture capital and assets management. The bank has a network of 2035 branches and about 5518 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, Srilanka, 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 equity shares are listed in India on Bombay Stock Exchange and National stock exchange of India Limited and their American Depository Receipts (ADRs) are listed on NYSE. The bank is first Indian banks listed NYSE. SUBSIDIARIES OF ICICI BANK(NATIONAL & INTERNATIONAL) i. ICICI Lombard. ii. ICICI Bank UK PLC. iii. ICICI Prudential Life Insurance Company Ltd. iv. ICICI Bank Canada. v. ICICI SecuritiesLimited. vi. ICICI Bank Eurasia LLC. vii. ICICI Prudential Asset Management Company Limited. viii. ICICI Venture. ix. ICICI direct.com. x. ICICI Foundation. 13

BALANCE SHEET FOR ICICI BANK MAR 16 MAR 15 MAR'14 14 MAR'13 MAR'12 PARAMETERS SOURCES OF FUNDS Owners' Fund Equity Share Capital 1,163.17 1,159.66 1,155.04 1,153.64 1,152.77 Share Application 6.70 7.44 6.57 4.48 2.39 Money Preference Share Capital Reserves & Surplus 85,748.24 79,262.26 72,051.71 65,547.84 59,250.09 Loan Funds Secured Loans Unsecured Loans 421,425.71 361,562.73 331,913.66 292,613.63 255,499.96 Total 508,343.82 441,992.09 405,126.98 359,319.58 315,905.20 USES OF FUNDS Fixed Assets Gross Block 7,576.92 4,725.52 4,678.14 4,647.06 4,614.69 Less: Revaluation Reserve 2,817.47 0.00 0.00 0.00 0.00 Less: Accumulated Depreciation Net Block 4,759.45 4,725.52 4,678.14 4,647.06 4,614.69 Capital Work-inprogress Investments 160,411.80 186,580.03 177,021.82 171,393.60 159,560.04 Net Current Assets Current Assets, Loans & Advances Less : Current Liabilities & Provisions 57,573.70 24,997.05 32,709.39 29,087.07 19,515.39 34,726.43 31,719.86 34,755.55 32,133.60 17,576.98 Total Net Current Assets 22,847.27-6,722.81-2,046.16-3,046.53 1,938.40 Miscellaneous Expenses not written Total 188,018.51 184,582.75 179,653.79 172,994.13 166,113.13 Note Book Value of Unquoted Investment Market Value of Quoted Investment Contingent liabilities 922,453.51 868,190.58 794,965.35 802,383.84 923,037.16 Number of Equity 58,147.68 57,972.45 11,535.82 11,527.14 11,517.72

shares outstanding (in Lacks) Source: Financial year report of ICICI Bank 2010-11 to 2014-15. PROFIT & LOSS FOR ICICI BANK MAR 16 MAR 15 MAR'14 MAR'13 MAR'12 PARAMETERS (Cr.) (Cr.) (Cr.) (Cr.) (Cr.) Income : 52,739.43 49,091.14 44,178.15 40,075.60 33,542.65 Operating Income Expenses Material Consumed Manufacturing Expenses 3,012.69 4,749.88 4,220.11 3,893.29 3,515.28 Personnel Expenses Selling Expenses 8,972.36 6,087.01 5,512.79 4,629.44 3,810.63 Administrative Expenses Expenses Capitalized 43,500.45 40,888.41 37,435.48 34,731.91 30,134.41 Cost Of Sales 9,238.99 8,202.73 6,742.67 5,343.69 3,408.24 Operating Profit 15,323.05 12,176.13 10,427.87 8,345.70 7,502.76 Other Recurring Income 56,077.44 50,430.39 44,873.13 39,898.57 33,719.50 Adjusted PBDIT 31,515.39 30,051.53 27,702.59 26,209.18 22,808.50 Financial Expenses 698.51 658.95 575.97 490.16 524.53 Depreciation Other Write offs 43,711.11 45,871.45 13,968.17 11,396.69 8,803.43 Adjusted PBT 2,469.43 4,644.57 4,157.69 3,071.22 2,338.17 Tax Charges 41,241.68 41,226.88 9,810.48 8,325.47 6,465.26 Adjusted PAT Non Recurring Items Other Non Cash adjustments 9,726.29 11,175.35 9,810.48 8,325.47 6,465.26 Reported Net Profit 58,503.10 54,545.47 19,712.76 15,379.71 11,483.44 Earnings Before Appropriation 2,628.14 2,627.66 2,425.04 2,015.07 1,681.69 Equity Dividend Preference Dividend 279.37 271.15 231.25 292.16 220.35 Dividend Tax 55,595.58 51,646.66 17,056.48 13,072.47 9,581.40 Retained Earnings 52,739.43 49,091.14 44,178.15 40,075.60 33,542.65 Source: Financial year report of ICICI Bank 2010-11 to 2014-15. 15

CASHFLOW FOR ICICI BANK MAR 16 MAR 15 MAR'14 MAR'13 MAR'12 PARAMETERS Profit Before Tax 12,195.72 15,819.92 13,968.17 11,396.69 8,803.42 Net Cash Flow-Operating Activity 22,428.47-4,824.49 4,668.60 11,102.01 9,683.82 Net Cash Used In Investing Activity -3,949.98-9,199.56-12,246.48-9,431.56-12,280.17 Net Cash Used in Fin. Activity -585.07 15,005.67 6,838.37 2,989.72 3,829.95 Net Inc/Dec In Cash And Equivalent 17,564.13 775.02 112.08 5,188.21 2,139.23 Cash And Equivalent Begin of Year 42,304.62 41,529.60 41,417.52 36,229.31 34,090.08 Cash And Equivalent End Of Year 59,868.74 42,304.62 41,529.60 41,417.52 36,229.31 Source: Financial year report of ICICI Bank 2010-11 to 2014-15. RATIO FOR ICICI BANK MAR 16 MAR 15 MAR'14 MAR'13 MAR'12 PARAMETERS PER SHARE RATIOS Adjusted E P S (Rs.) 70.93 71.11 85.04 72.22 56.13 Adjusted Cash EPS (Rs.) 72.13 72.25 90.04 76.48 60.69 Reported EPS (Rs.) 16.73 19.28 85.04 72.22 56.13 Reported Cash EPS (Rs.) 17.93 20.41 90.04 76.48 60.69 Dividend Per Share 5.00 5.00 23.00 20.00 16.50 Operating Profit Per Share (Rs.) 15.89 14.15 58.45 46.36 29.59 Book Value (Excl Rev Res) Per Share 149.47 138.72 634.60 578.65 524.43 (Rs.) Book Value (Incl Rev Res) Per Share 154.31 138.72 634.60 578.65 524.43 (Rs.) Net Operating Income Per Share 90.70 84.68 382.96 347.66 291.23 (Rs.) Free Reserves Per Share (Rs.) PROFITABILITY RATIOS Operating Margin 17.51 16.70 15.26 13.33 10.16 16

(%) Gross Profit Margin (%) 16.19 15.36 13.95 12.11 8.59 Net Profit Margin (%) 18.44 22.76 22.20 20.77 19.27 Adjusted Cash Margin (%) 61.62 68.36 19.02 18.20 17.02 Adjusted Return On Net Worth (%) 47.45 51.26 13.40 12.48 10.70 Reported Return On Net Worth (%) 11.19 13.89 13.40 12.48 10.70 Return On long Term Funds (%) 86.55 94.40 56.92 56.37 52.33 LEVERAGE RATIOS Long Term Debt / Equity Total Debt/Equity 6.86 6.64 6.65 6.57 6.55 Owners fund as % of total Source 17.09 18.19 18.07 18.56 19.12 Fixed Assets Turnover Ratio 0.08 0.08 0.08 0.08 0.07 LIQUIDITY RATIOS Current Ratio 1.66 0.78 0.94 0.90 1.11 Current Ratio (Inc. ST Loans) 0.12 0.06 0.08 0.08 0.07 Quick Ratio 14.97 13.81 11.31 10.53 16.71 Inventory Turnover Ratio PAYOUT RATIOS Dividend payout Ratio (Net Profit) 29.89 25.93 27.07 27.71 29.41 Dividend payout Ratio (Cash Profit) 27.89 24.49 25.57 26.17 27.21 Earning Retention Ratio 92.96 92.97 72.93 72.29 70.59 Cash Earnings Retention Ratio 93.07 93.08 74.43 73.83 72.79 COVERAGE RATIOS Adjusted Cash Flow Time Total Debt 10.05 8.63 31.96 33.19 36.55 Financial Charges 1.78 1.68 1.62 1.52 1.48 17

Coverage Ratio Fin. Charges Cov.Ratio (Post 1.33 1.39 1.37 1.34 1.31 Tax) COMPONENT RATIOS Material Cost Component(% earnings) Selling Cost Component Exports as percent of Total Sales Import Comp. in Raw Mat. Consumed Long term assets / Total Assets 0.74 0.88 0.84 0.85 0.89 Bonus Component In Equity Capital (%) Source: Financial year report of ICICI Bank 2010-11 to 2014-15. RESEARCH METHODOLOGY The study has been conducted with reference to the data related to SBI and ICICI bank. These banks have been studies with the belief that they hold the largest market share of banking business in India, in their respective sector. The study examines the financial performance of SBI and ICICI banks for the period of 2011-12 to 2015-16 and compares the performance. A. The study- The study is an exploratory and analytical in nature with an attempt to explore the financial performance of public sector and private sector banks with reference to SBI and ICICI banks. In this study I basically study the comparisons of financial performance of both banks. B. The Sampling plan- For this study, data covers Profit and Loss A/C, Balance Sheets, Financial Highlights for a period of five years from 2011-12 to 2015-16 of SBI and ICICI Banks. C. Source of Data Collection- For this research proposal secondary source of data collection was used in the form of reports through internet. D. Tools for Data Collection- The data required for the study will be collected from- Annual reports of respective banks Journals and reports on trends Newspapers, magazines Progress of Banking of India Government publications Books and websites. E. Tools for Data Analysis - 18

For the analysis of collected secondary data following tools were used to know financialperformance and business model of SBI and ICICI Banks. Various financial ratios Graphs (like bar charts) Different comparative tables. F. Beneficiaries of Research Study Bank: This research will very helpful for both the banks to take necessary measures for improve their financial performance in terms of increase profit, reduction in expenses. Investors: Investors of the whose called shareholders are also get benefitted from this Research to know that how much return they are earning in terms of return on investment, return onassets and profits. Customers: These are those people who also known as account holders, they only will deposit their funds when they will get maximum interest in comparison of other banks, so the bank only give more interest when they will have surplus profits, for measure such profit this study will help them. Further Researchers: The major beneficiaries from the project would be the researchers themselves as this study would enhance their knowledge about the topic. They get an insight of the present scenario of this industry as this is the emerging industry in the financial sector of the economy. Student: To get the understanding of financial performance. Data Analysis and Interpretation TABLE-1 COMPARATIVE STUDY OF SBI s INCOME ANALYSIS ON THE BASIS OF 2010-2011 AS BASE 100% (Increase / decrease in %) PARTICULAR YEARS Total Income Total Expenses Interest Income Interest Expenses Profit Before Tax Profit After Tax Net Interest Income 2010-11 0 0 0 0 0 0 0 2011-12 -18.2-20.1 30.9 29.4 33.1 41.7-18.2 2012-13 -8.2-11 47 54.1 36.3 70.7-8.2 2013-14 4.8 5.4 67.5 78.2 51.5 31.8 4.8 2014-15 18.3 18.4 87.2 99.3 69.1 58.8 18.3 Source- Annual Report of Banks. GRAPH OF SBI s INCOME ANALYSIS ON THE BASIS OF 2010-2011 AS BASE 100% (Increase / decrease in %) 19

income and expenses 120 100 80 60 40 20 0-20 -40 2010-11 2011-12 2012-13 2013-14 2014-15 years Total Income Total Expenses Interest Income Interest Expenses Profit Before Tax Profit After Tax Series 7 TABLE-2 COMPARATIVE STUDY OF ICICI s INCOME ANALYSIS ON THE BASIS OF 2010-11 AS BASE 100% (Increase / decrease in %) PARTICULAR YEARS Total Income Total Expenses Interest Income Interest Expenses Profit Before Tax Profit After Tax Net Interest Income 2010-11 0 0 0 0 0 0 0 2011-12 25.8 25.9 29.1 34.5 30.2 25.5 33.1 2012-13 48.4 46 54.3 54.6 68.5 65.5 36.3 2013-14 67.4 63.1 70.1 63.4 106.6 90.4 51.5 2014-15 87.8 82.3 89 77.2 134 116.9 69.1 Source- Annual Report of Banks. GRAPH OF ICICI s INCOME ANALYSIS ON THE BASIS OF 2010-11 AS BASE 100% (Increase / decrease in %) income and expenses 160 140 120 100 80 60 40 20 0 years Total Income Total Expenses Interest Income Interest Expenses Profit Before Tax Profit After Tax Net Interest Income 20

TABLE-3 STUDY OF MARKET TEST RATIO OF SBI BANKS (Figures in Rs.) PARTICULARS YEARS Earnings Share Per Price Ratio Earnings Dividend Out Pay Dividend Ratio Yield 2010-11 130.16 21.24 23.05 0.008 2011-12 184.31 11.37 20.06 0.01 2012-13 210.06 9.86 20.12 0.01 2013-14 156.76 12.23 20.56 0.01 2014-15 17.55 15.21 20.21 0.075 Source- Annual Report of Banks. GRAPH OF MARKET TEST RATIO OF SBI BANKS 250 income and expenses 200 150 100 50 Earnings Per Share Price Earnings Ratio Dividend Pay Out Dividend Yield Ratio 0 2010-11 2011-12 2012-13 2013-14 2014-15 years 21

TABLE-4 STUDY OF MARKET TEST RATIO OF ICICI BANKS (Figures in Rs.) PARTICULARS YEARS Earnings Per Share Price Earnings Ratio Dividend Pay Out Dividend Yield Ratio 2010-11 9.05 124.42 0.31 0.00027 2011-12 11.22 84.9376 0.29 0.00031 2012-13 14.44 78.8781 0.28 0.00024 2013-14 17 74.0588 0.27 0.00021 2014-15 19.32 18.0642 0.26 0.00074 Source- Annual Report of Banks. GRAPH OF MARKET TEST RATIO OF ICICI BANKS 140 income and expenses 120 100 80 60 40 20 earnings per share price earning ratio dividend pay out dividend yield ratio 0 2010-11 2011-12 2012-13 2013-14 2014-15 years RESULTS AND FINDINGS In the year 2012-13 where SBI bank s Total Income were decreasing on the other hand ICICI bank s were increasing but in terms of figures SBI bank is leading. NPA (Non Performing Assets) of SBI bank were gradually increasing for year 2010-11 to 2014-15 which shows assets converting in bad debts, on the other hand NPA of ICICI bank also increasing at diminishing rate. 22

Provision for NPA of SBI bank also increasing for year 2010-11 to 2014-15 but for ICICI bank s were decreasing which shows in SBI bank there are more chances to convert debtors in NPA to bad bets i.e., loss for bank. SBI bank has positive low degree of correlation between Total income and Profit after tax where on the other hand ICICI bank has positive high degree of correlation. SBI bank and ICICI bank both has nearly regression which shows increase/decrease in Total expenditure depends upon Total income and vice versa. CONCLUSIONS State Bank of India is the largest bank in the public sector and ICICI is in the private sector. The market expansion of SBI is more as compare to ICICI bank. SBI enter into the rural market and making more and more customer. SBI also comes with the new services and attract to the customers. By analysis of the financial performance of SBI and ICICI bank we can say that the SBI is financially sound as compare to the ICICI bank. SBI have more profitability because it enters into the industry as well as commercial market also and regularly it improving their service quality level. The ICICI bank also the leader in the private market and it is equal competitor of the SBI but SBI is performing better because the trustworthiness of people are more towards SBI as compare to ICICI bank. On the part ofnpa, again SBI has fewer bad debts as compare to ICICI; the reason may be the sound image of SBI in the eyes of customers. SBI is leading and has also many rural and urban branches, it also gives strength to SBI and makes it enable to cover the advance given which in turn reduce the bad debts of SBI whereas in case of ICICI, it needs to work hard to recover the amount given as advance. The data also reveals that ICICI has circulated more advances to the customers as compare to SBI, this also one reason which increases the bad debts of ICICI. Market test ratio calculation and graph reveals that the again the market position of SBI is much better than the ICICI. The one reason can be that SBI is public sector bank; and the second reason can be that the SBI is the oldest bank has captured the large market which again improve and increases its market position. BIBLIOGRAPHY Financial year report of SBI 2010-11 to 2014-15. SBI bulletin publication 2014-15. Financial year report of ICICI Bank 2010-11 to 2014-15. ICICI Bank bulletin publication 2014-15. RBI statistical table relating to banks 2014-15. http://wwwicicibank.com/ http://statebankofindia.com/ http://www.icicibank.com/aboutus/annual.html http://www.moneycontrol.com/ http://equitymaster.com/ Under the support and guidance of Dr.Gargi Srivastava 23