BANKING SERVICES A COMPARATIVE STUDY

State Bank of India vs ICICI Bank

As part of our study, we, Group 4 have decided to choose brands from Services category to
do a comparative study.
Introduction:
Services are defined as intangible economic activities provided by one party to another under
which an exchange of money, time or effort by one party occurs against value offered by the
other party under negotiated terms of agreement.
The American Marketing Association defines services as - Activities, benefits and
satisfactions which are offered for sale or are provided in connection with the sale of
goods.[1]
Services are generally assumed to have following characteristics:
1. Intangibility:
Services by definition are intangible hence they do not have any physical existence.
This is primarily how it is differentiated from a product which is tangible i.e. has
physical presence.
2. Inseparability:
Services are inseparable from corresponding service provider which makes provider
and customer interaction an important feature.
3. Variability:
Services provided by any individual or organisation differ in nature from service to
service and they offer different types of services to different types of customers
depending upon their requirements.
For our study we decided to focus on the Banking and Finance Sector which provides
financial services to its customers.
Banking Regulation act
Negotiable instruments act
In India, the banking industry is well regulated and supervised as per the Reserve Bank of
India. Indian banking industry has recently witnessed an inflow of various innovative
banking models like microfinancing, NPAs to restructuring payments and small service
banks, and the industry is boosted by efforts of major restructuring. Due to several policy
initiatives set to be implemented in due course, the economy seems to be on the verge of
major transformation.[2]
Major Players in the industry:
The Indian banking industry is highly segregated and structured one with different banks
operating under various sectors. The major classification of the banks can be done as
following.
1. Public Sector Banks
2. Private Sector Banks

3. Foreign Banks
Public Sector Banks:
State Bank of India & its associates State Bank of Patiala, State Bank of Mysore, State Bank
of Hyderabad, State Bank of Travancore, State Bank of Bikaner and Jaipur and State Bank of
Saurashtra.

Allahabad Bank
Andhra Bank
Bank of Maharashtra Canara Bank
Dena Bank
Indian Bank

Bank of India
Central Bank of India
Indian Overseas Bank

Punjab & Sind Bank

Union Bank of India

Punjab National Bank

United Bank of India

Uco Bank
Syndicate Bank

Bank of Baroda
Corporation Bank
Oriental
Bank
Commerce
Vijaya Bank

IDBI Bank, Bharatiya Mahila Bank

Private Sector Banks: Major Banks in this sector are
Axis Bank
DCB Bank
IDFC Bank
Kotak
Mahindra
Bank

Bandhan Bank
Federal Bank
IndusInd Bank
Lakshmi Vilas Bank

City Union Bank

HDFC Bank
ING Vysya Bank
Yes Bank

Dhanlaxmi Bank
ICICI Bank
Karur Vysya Bank
South Indian Bank

Foreign Banks:
CITI Bank
DBS Bank Ltd
BNP Paribas
Customer Segments in the industry:
A broad categorisation of consumer segments in reference to a particular under Indian
Banking sector can be done as following:
1. Non Customers
These are the persons who have never dealt with the particular bank before.
2. Low Value Customers
These include customers with limited income and less financial needs. We can
consider farmers in village as under this segment.
3. Medium Value Customers:
Sole proprietorship concerns and Partnerships come under this category. They have
limited means but comparatively higher than low income group.
4. High Value Customers:
These include big depositors and joint stock companies. These are customers who are
more costly to the bank to retain in terms of preferential services offered.
We are choosing SBI and ICICI bank for our comparison.

of

ICICI targets High Value Customers whereas SBI gives more importance to low value customers;
both the banks provide services to all types of customers but their preferences are different.
We can infer the same from below data
Sno

Category
1 Total Branches
2 ATMS
PMJDY(Pradhan Mantri Jan Dhan Yojana
3 accounts)
4 Debit card holders
5 Customer base
6 Basic Savings Bank Accounts
7 Cards

SBI

ICICI
16784
4450
59000
13766
5.32
0.29
Crores
Crores
23.3
Crores
NA
30.12
Crores
NA
2.07
NA
Crores
4.1
NA
Crores

NA-Exact number not found

We can easily infer that SBI is providing services across the nation and having branches 4 times that
of ICICI, whereas ICICI dont have branches in villages. Rural covers more
ICICI have limited branches in rural areas when compared to SBI.
SBI actively participates in government initiatives and opened 5.32 crores of PMJDY accounts
whereas ICICI opened only 0.29 crore accounts. And even the customer base of SBI is inferring that it
is everyones bank. The main motive of SBI is to provide services to as many people as it can.

4Ps of SBI
Product:
It was founded in 1806.Bank of Calcutta was the first bank to be established in India. It evolved into
SBI over a period of time. It is the Indias largest bank in terms of assets, deposits, profits, branches,
customers and employees. It provides many services such as
1. Debit Cards, Credit cards, International cards
2. Consumer Banking (matter)
3. Investment Banking (matter)
4. Loans and advances
5. Internet Banking
6. General Insurance
8. Wealth Management (check once)
9. Finance and Insurance and many other services

Place:
It has 16784 branches all over India where 66% of its branches are located in rural areas. These
branches cover most of the villages in India. It provides Pan India village coverage to 103565 villages
in India through its branches. The bank has 198 branches outside India which are spread across 37
countries in all the continents. It has around 59000 Atms in the country through which it is providing
its services. It has 2.55 crore internet banking users.
Price:
The pricing policies of SBI are very clear and most of them are determined by various government
policies, because it always works with the government to promote various initiatives of the
government. It always provides loans at very competitive prices when compared to other banks.
Through its various competitive pricing methods it is the preferred bank to many people in the
country. It is also in the list of fortune 500 companies with a rank of 232. (More government business
so it can provide competitive prices only saving account or current account)
Promotion:
The tagline of SBI is The Banker to Every Indian which is very catchy and attracts lot of customers.
Promotions are done through TV advertisements, newspapers and other media to make people aware
about the bank and various services offered by the bank.

4Ps of ICICI
Product:
ICICI bank is the countrys largest private bank. It has total assets of 9188 billion Rs in the financial
year 2015-16. It has 41 million cards in force. It is the first private sector bank to cross mortgage
portfolio of 1 trillion rs. It has the largest retail network of 18216 branches and ATMs among private
sector banks. It provides many services such as
1. Cards
2. Consumer Banking
3. Investment Banking
4. Loans
5. Internet Banking
6. Private banking
7. Mortgage Loans
8. Wealth Management
9. Finance and many other services

Place:
It has 4450 branches in the country. The bank has 12 branches outside India which are spread across 9
countries in all the continents. It has around 13766 Atms in the country through which it is providing
its services.
Price:
ICICI bank offers a variety of financial services to its esteemed customers. The bank designs its
strategies by analysing the customer mind set. It also considers economic changes happening in the
market. If we compare with second tier banks ICICI can be clearly seen as a premium priced bank.
Promotion:
More importance is given to benefits one gets on using the banks services. The benefit of each
product is clearly explained so that customers become attracted to avail the services of the bank.
Promotions of the bank are also done through movies.

Brand Elements
Brand elements include the brand name, logo, slogan, jingles, the brand ambassador and whatever is
used to denote the brand.
SBI:- State Bank of India

The name State bank of India itself has become synonymous with the nation in the minds of
people. The big Circle in blue represents unity and the white design denotes common man who is a
vital part of the organization despite the big size of the bank. SBI has got very appealing slogans to
the ordinary citizen like "PURE BANKING, NOTHING ELSE", "WITH YOU - ALL THE WAY", "A
BANK OF THE COMMON MAN", "THE BANKER TO EVERY INDIAN", "THE NATION
BANKS ON US".
ICICI:-Industrial Credit and Investment Corporation of India

i denotes numero-uno which translates to the best or most important person or thing. It also
denotes the individual or the customer who is important to the organization. They have used blue as a
color of depth, trust and unity whereas orange is the color of dynamism and maroon the color of

warmth. They have used celebrity faces like Shah Rukh Khan and Amitabh Bachchan to promote the
brand. Slogans are SAFER SIMPLER SMARTER(2001), HUM HAI NA(2003),
OPPORTUNITIES UNLIMITED(2005), POWER OF BELIEF(2008). These slogans are more
appealing to that section of the society which is quite well off.

Brand Association

SBI: One notable feature about SBI is its availability. You can find their ATMs in every nook and
corner of the country even at places which are less likely to have an ATM. It is obviously the most
trusted bank of India. They usually give loans at lower interest rates, have valuable money security
and are closely associated to government proposals.
ICICI: The customer support ICICI offers is one of the best in the banking sector. The online banking,
phone banking and customer care are undoubtedly leaving a long lasting impression in the minds of
customers. Customers feel more comfortable with the staff support from privatized banks like ICICI
than the government ones. Also the monetary security of ICICI is also very high since it is a wellestablished brand.

https://en.wikipedia.org/wiki/State_Bank_of_India#Logo_and_slogan
https://upload.wikimedia.org/wikipedia/commons/thumb/c/cc/SBIlogo.svg/2000px-SBI-logo.svg.png
https://www.scoopwhoop.com/meaning-of-sbi-logo/
https://goodlogo.com/extended.info/icici-bank-logo-3895
http://www.icicibank.com/compliments/compliments.page?#toptitle