SBI vs ICICI
SBI stands for State Bank of India. It is a public sector institution (government
owned), with a huge customer base all over India. It has seven associate
banks operating under its SBI name. It has over thirteen thousand branches
across India and in some selected international countries, and a 56,000 ATM
network across India. The Standard Bank of India ‘inherited’ the Bank of
Calcutta, which was founded in 1806, and has been in existence for over two
hundred years.
On the other hand, the ICICI is a private sector bank (privately owned), with a
relatively smaller clientele base. It is one of the major banks in India (precisely
the second largest), but much smaller than the SBI. It has 950 branches, with
3,500 branches across India. The bank has deposits of Rs 1.65 lakh crore
compared to SBI’s Rs 3.8 lakh crore (accumulated in a period of twelve
years), racking up a net worth of Rs 22,000 against Rs 27,000 for the State
Bank of India. This represents Rs 9 crore business generated by each ICICI
employee per year, compared to Rs 3 crore worth of business per employee
of the ICICI.
While the State Bank pays 4.7 percent on deposits, and earns less on
advances, the ICICI pays 0.7 less (4 percent), while earning more on
advances, and thus earns 0.4 percent more on assets than the SBI. This is no
surprise, as there’s seemingly limitless access to funds from the government
for the state owned SBI.
On money transfers from overseas accounts, with the SBI, once a transfer
transaction is completed, you will be able to know the exchange rate used,
and there are no restrictions on the amounts you can transfer a day. However,
the ICICI transfer is somewhat different. After completion of a money transfer
transaction, the exchange rate can only be known after five days, and there is
a daily limit of $5000 that can be transferred a day.
Although the SBI has generally performed well in the past, in recent years, the
ICICI has seen very good performance, almost edging out the SBI in every
aspect, especially financially. The financial years between 2001-2002 and
2005, and 2006, saw very strong gains for the ICICI bank. Its deposits grew
by 200 percent, five times more than the SBI’s, and while SBI’s revenue grew
by 30 percent, the ICICI bank’s revenue grew by seven times that percentage.
This trend means that ICICI’s growth will eventually overtake SBI’s in the
future, in terms of deposits.
Summary:
1. The SBI is a government owned bank (public sector), while ICICI is a
privately owned bank (private sector).
2. The SBI is much older (more than 200 years old) and more established
than the ICICI, which is less than 25 years old.
3. The SBI does not limit daily international transfer amounts, while the ICICI
limits daily transfers to $5000 a day.
4. The SBI bank pays a higher percentage on deposits than the ICICI bank.
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