Parmeshwari Devi Dhanuka
Saraswati
Vidya Mandir
Vrindavan
BANKING
PROJECT FILE
NAME:
CLASS:
ROLL NO:
SUBJECT:
SUBMITTED TO: SUBBIMETTED
BY:
MR.ABHISHAKE SANYAM
CERTIFICATE
This is to certify that Sanyam gautam of class: XII
“c” of Parmeshwari Devi Dhanuka Saraswati
Vidya Mandir Vrindavan has done his project on
BANKING under my supervision. He has taken
interest and has shown at most sincerity in
completion of this project. I certify this project up to
my expectation & as per guidelines issued by CBSE,
NEW DELHI. Internal Examiner External Examiner
Principal
Internal Examiner External Examiner
Principal
DIFFERENCE BETWEEN ICICI AND SBI
ICICI Bank and State Bank of India (SBI) are both
major banks in India, each with its own
strengths and customer offerings. ICICI Bank is
India's largest private sector bank, while SBI is
backed by the government
Growth:
ICICI Bank: Has outpaced SBI in terms of growth and
has a higher advance-to-deposit ratio.
Other factors:
ICICI Bank is India's largest private sector bank.
SBI is backed by the government.
The difference between the two is the net interest
income. A positive and growing net interest income is
a sign of a bank's financial health. In the last five
years, the net interest income of ICICI Bank and SBI
have grown at a compound annual growth rate
(CAGR) of 16.3% and 10.5%, respectively
Interest earned
• Savings accounts
• ICICI Bank: Offers an interest
rate of 3.00% for deposits below
Rs. 5 lakh and 3.50% for deposits
above Rs. 5 lakh.
• SBI: Offers a savings account interest
rate of 8.50% or more.
• Other factors
• The net interest income (NII)
of a bank is a sign of its
financial health.
• The interest accrued on an FD can
be disbursed at regular intervals
or compounded.
• Investors can withdraw funds
from an FD along with the accrued
interest and reinvest them to get
a higher interest rate.
Demand Deposits to total deposit share
ICICI Bank has grown its
deposits faster than State
Bank of India (SBI) in recent
years, primarily due to the
growth of term deposits in
ICICI Bank Factors that affect
deposit growth
Interest rates: As interest
rates rise, funds move from
low-interest accounts to
higher-yielding time
deposits.
Customer confidence:
Growing deposits are
considered a good sign of
customer confidence.
Borrowing
ICICI and SBI offer a variety of
loans, including personal
loans and home loans. The
main differences between
the two banks are the
interest rates, loan tenures,
and processing fees Other
differences
Personal loans
1.ICICI Bank offers personal
loans up to Rs 25 lakhs, while
SBI offers personal loans up
to Rs 20 lakhs
2.Home loans
3.ICICI Bank offers home loans
up to Rs 5 crores, while SBI
offers home loans up to Rs
6–10 crores
Loan to deposit ratio
• In fiscal year 2021, the loan to deposit ratio
(LDR) of ICICI Bank was higher than that of State
Bank of India (SBI):
• ICICI Bank: In 2021, ICICI Bank's LDR was around
19%.
• SBI: In 2021, SBI's LDR was around 66%.
• Explanation
• The LDR is a ratio that measures the amount
of loans a bank has compared to the amount
of deposits it has.
• An ideal LDR is typically between 80% and 90%.
• A LDR of 100% means that a bank has loaned
out every dollar it has received in deposits. This
leaves the bank with few reserves for
unexpected events.
• Other factors that can be used to compare
banks include:
• Return on equity (ROE): The ability of a bank to
generate returns on the capital invested by its
shareholders
• Advance-to-deposit ratio: The ratio of a bank's
loans to its deposits
• Debt-to-equity ratio: The ratio of a bank's
borrowed funds to its owned funds
Capital adequacy ratio
• ICICI Bank's capital adequacy
ratio (CAR) is generally higher
than State Bank of India's (SBI)
CAR. This indicates that ICICI
Bank is better able to withstand
economic fluctuations and is
more financially resilient.
• Explanation
• What is CAR? The CAR is a ratio
that measures a bank's capital in
relation to its risk-weighted
assets.
• What is the minimum
CAR? The minimum CAR
required by the Reserve
Bank of India (RBI) is 9%.
• What does a high CAR indicate?
A high CAR indicates that a bank
has a strong capital buffer and is
financially resilient
Non performing assets
The non-performing assets
(NPAs) of ICICI Bank and
State Bank of India (SBI) have
both increased over time.
However, ICICI Bank has
shown a downward trend in
NPAs compared to SBI, due
to effective NPA
management.
• Explanation
• Gross NPA ratio:
• The gross NPA ratio of SBI
increased from 2.89% in
2009 to 10.91% in 2018.
• The gross NPA ratio of ICICI
Bank increased from 4.49%
in 2009 to 10.55% in 2018.
Profitability
• ICICI Bank has a higher net profit margin than
State Bank of
India (SBI), but SBI has a higher net profit.
ICICI Bank's Return on Equity (RoE) is also
higher than SBI's.
• Net profit margin
• ICICI Bank has a higher net profit margin than
SBI.
• ICICI Bank has been able to increase its
net profit margin by cutting costs and
increasing other sources of income.
• Return on Equity (RoE)
• ICICI Bank's RoE is higher than SBI's, often
exceeding 15%.
• RoE measures profitability from
the perspective of shareholders.
• Net profit
• SBI has a higher net profit than ICICI Bank.
• SBI's profits have grown due to rising
advance yields, growing
Returns of assets
• ICICI Bank's return on assets
(RoA) is typically higher than
State Bank of India's (SBI) RoA.
This means that ICICI Bank
generates more profit per unit
of asset than SBI.
• Explanation
• Return on assets (RoA): A
measure of how well a bank
uses its assets to generate
profit
• Net interest margin (NIM): A key
indicator of profitability that
shows how well a bank uses its
assets to generate interest
income
• Return on equity (RoE): A
measure of profitability from the
perspective of shareholders
Conclusion
• Net profit margin: ICICI Bank has a
higher net profit margin than SBI.
• Interest income: Interest income has
decreased in SBI, while ICICI Bank has
taken steps to cut costs and increase
income from other sources.
• Customer satisfaction: Some studies
have found that ICICI Bank
customers are more satisfied than
SBI customers.
• Market cap: ICICI Bank has a higher market
cap than SBI.
• Factors to consider
• Technological preferences: How important is
technology to you?
• Personalized services: How
important is personalized service to
you?
• Banking needs: What are your specific
banking needs?
