SHERWOOD COLLEGE OF MANAGEMENT

Study of wholesale medicine market for financing opportunities by SBI at Lucknow

Internship report submitted to SBI in completion of requirement of summer internship at State bank of India

Submitted by: KUMUD KHARE MRIDULA SINGH

Reporting officer:MR. AWADESH KUMAR MISHRA

14th june2013 to 14thaug2013

DECLARATION

We the undersigned KUMUD KHARE & MRIDULA SINGH , students of MBA (Wholesale medicine Market for financing Opportunities by SBI at Lucknow) Semester-III , hereby declare that the project work presented in this report is our original work. This work has not be en previously submitted to any other university for any other examination. Thanking you

Date: 01Aug 2013 Place: LUCKNOW

---------------------(KUMUD KHARE) (MR IDULA S INGH)

ACKNOWLEDGEMENT
At outset, we would like to thank the institutions for having provided us with an opportunity to carry out a project of this magnitude that helped me satisfy my curiosity as far as my area of interest was concerned. The essence of this project, i.e. its contents have been compiled with help of varied sources of secondary database, but we would specially like to acknowledge the support, suggestions and feedback received from my Project Guide-MR AWADESH KUMAR MISHRA.

Kumud khare Mridula Singh Thanking you MBA (2012-14)

TABLE OF CONTENTS
S.NO 1. 2. 3. TITLE AKNOWLEDGEMENT LIST OF CHARTS INTRODUCTION 4. Brief profile of student Brief profile of project mentor Brief profile of organization Nature of project Brief objectives/responsibilities assigned by the project mentor

FRAMEWORK OF STUDY Theoretical framework Specific objectives of the product Scope of study Limitation of study Period of study METHODOLOGY AND ANALYSIS Methodology Analysis Observation Analysis Conclusion Recommendations BIBLOGRAPHY ANNEXURE

5.

6. 7.

LIST OF CHARTS
1. Charts related to :- INCOME ,REVENUE & ASSETS

5.97% 6.47%1.79% 6.21%

19.83%

59.73%

Reserve Bank of India Non-residents (FIIs, OCBs, NRIs) Banks, FIs including insurance companies Mutual funds/UTI Domestic companies/private corporate bodies/trusts Resident individuals

REVENUE BY DIVISION

Division Division A D 16% 23% Division B Division C 24% 37%

ASSETS

ROW 7%

AIME 29%

loan 12%

Share 52%

STOCK PERFORMANCE

 INTRODUCTION

PROFILE OF STUDENT PROFILE OF PROJECT MENTOR PROFILE OF ORGANIZATION NATURE OF PROJECT OBJECTIVES/RESPONSIBILITIES ASSIGNED

INTRODUCTION

PROFILE OF STUDENT
Name-KUMUD KHARE MRIDULA SINGH Email id- khare.kumud005@gmail.com Mridulasingh98@gmail.com Mobile no- 9839957506 9919655388
Currently pursuing MBA from SHERWOOD COLLEGE OF MANAGEMENT, LUCKNOW

OBJECTIVE: -To work in a challenging environment in an organization with good prospects that will help me in enhancing my skills along with the growth of the organization

 PROFILE OF PROJECT MENTOR

Name:

MR AWADESH KUMAR MISHRA

Designation:

CHIEF MANAGER SME CCC, HALWASIYA MAIN BRANCH HAZRATGANJ LUCKNOW

PROFILE OF AN ORGANIZATION
STATE BANK OF INDIA is a multinational banking and financial services company based in India. It is a 9

Government-owned Corporation with its headquarters in Mumbai, Maharashtra as of December 2012, it had assets of US$ 501 billion and 20,193 branches, including 157 foreign offices, making it The largest banking and financial services company in India by assets The bank traces its ancestry to British India, through the Imperial Bank of India, to the Founding in 1806 of the bank of Calcutta, making it the oldest commercial bank in the Indian Subcontinent. Bank of Madras merged into the other two presidency banks- Bank of Calcutta and Bank of Bombay. To form Imperial Bank of India, which is turn became a state bank of India. Government of India nationalized the State Bank of India in 1955, with Reserve Bank of India taking A 60% stake, and renamed it the State Bank of India. In 2008, the government took over the stake Held by the Reserve Bank of India. SBI provides a range of banking products through its network of branches in India and Overseas, including products aimed at non-residents Indians. SBI has 14 regional huts and 57 zonal Offices that is located at important cities throughout the country. In addition to banking the company, through its various subsidiaries, provides a range of Financial services, which include life insurance, merchant banking, custodial services, general Insurance (non-life insurance) and primary dealership in the money market. Its segment include Treasury, which includes investment portfolio and trading in foreign exchange contracts and Derivative contracts, corporate/wholesale banking, which comprises lending activities of Corporate Accounts Group and Stressed Assets Management Group, Retail Banking which comprises of Branches in National Banking Group, includes personal banking activities, including lending to

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Corporate customer and other Banking business

MANAGEMENT
The State Bank of India has 15 Members on its Board of Directors, who are responsible for the management of the banks business. The board in addition to monitoring corporate performance also carries out functions such as approving the business plan, reviewing and approving the annual budgets and borrowing limits and fixing exposure limits. MR. PRATIP CHAUDHRI is the Chairman of the Bank.

No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

Name Shri Pratip Chaudhri Shri Hemant G. Contractor Shri Diwakar Gupta Shri A. Krishna Kumar Shri S.Vishvanathan Shri S. Venkatachalam Shri D. Sundaram Shri Parthasarathy Iyengar Shri Thomas Mathew Shri Jyoti Bhushan Mohapatra Shri S.K. Mukherjee Dr. Rajiv Kumar Shri Deepak Amin Shri Harichandra Bahadur Singh Shri Rajiv Takru Dr. Urjit R. Patel

Designation Chairman Managing Director Managing Director Managing Director Managing Director Director Director Director Director Workmen Employee Director Officer Employee Director Director Director Director Director Director

Under Section of SBI Act 1955 19 (a) 19 (b) 19 (b) 19 (b) 19 (b) 19 (c) 19 (c) 19 (c) 19 (c) 19 (ca) 19 (cb) 19 (d) 19 (d) 19 (d) 19 (e) 19

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EVOLUTION OF STATE BANK OF INDIA

The origin of the STATE BANK OF INDIA goes back to the first decade of the nineteenth century with the establishment of the State bank India in Calcutta on 2 June 1806. Three years later the state bank of India received its charter and was re-designed as the state bank of Bengal (2 January 1809). A unique institution, it was the first joint-stock state bank of India of British India sponsored by the Government of Bengal. The state bank of Bombay (15 April 1840) and state bank of Madras (1 July 1843) followed the state bank of Bengal. These three banks remained at the apex of modern banking in India till their amalgamation as the Imperial bank on 27 January 1921.

Primarily Anglo-Indian creations, the three presidency banks came into existence either as a result of the compulsions of imperial bank or by the felt needs of local European commerce and were not imposed from outside in an arbitrary manner to modernize India's economy. Their evolution was, however, shaped by ideas culled from similar developments in Europe and England, and was influenced by changes occurring in the structure of both the local trading environment and those in the relations of the Indian economy to the economy of Europe and the global economic framework

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BANK OF BENGAL, H.O ESTABLISHMENT

The establishment of the state bank of Bengal marked the advent of limited liability, joint-stock banking in India. So was the associated innovation in banking, viz. the decision to allow the State Bank of Bengal to issue notes, which would be accepted for payment of public revenues within a restricted geographical area. This right of note issue was very valuable not only for the State Bank of Bengal but also its two siblings, the Banks of Bombay and Madras. It meant an accretion to the capital of the banks, a capital on which the proprietors did not have to pay any interest. The concept of deposit banking was also an innovation because the practice of accepting money for safekeeping (and in some cases, even investment on behalf of the clients) by the indigenous bankers had not spread as a general habit in most parts of India. But, for a long time, and especially up to the time that the three presidency banks had a right of note issue, State Bank of India notes and government balances made up the bulk of the invertible resources of the banks. The three banks were governed by royal charters, which were revised from time to time. Each charter provided for a share capital, four-fifth of which were privately subscribed and the rest owned by the provincial government. The members of the board of directors, which managed the affairs of each bank, were mostly proprietary directors representing the large European managing agency houses in India. The rest were government nominees, invariably civil servants, one of whom was elected as the president of the board.

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Group Photograph of Central Board (1921)

OLD BANK OF BENGAL

MAJOR CHANGE IN THE CONDITIONS

A major change in the conditions of operation of the Banks of Bengal, Bombay and Madras occurred after 1860. With the passing of the Paper state bank of India Act of 1861, the right of note issue of the presidency banks was abolished and the Government of India assumed from 1 March 1862 the sole power of issuing paper state bank of India within British India. The task of management and circulation of the new state bank of India notes was conferred on the presidency banks and the Government undertook to transfer the Treasury balances to the banks at places where the banks would open branches. None of the three banks had tilled then any branches

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(except the sole attempt and that to a short-lived one by the state bank of Bengal at Mirzapur (in 1839) although the charters had given them such authority. But as soon as the three presidency bands were assured of the free use of government Treasury balances at places where they would open branches, they embarked on branch expansion at a rapid pace. By 1876, the branches, agencies and sub agencies of the three presidency banks covered most of the major parts and many of the inland trade centers in India. While state bank of Bengal had eighteen branches including its head office, seasonal branches and sub agencies, the Banks of Bombay and Madras had fifteen each.

IMPERIAL BANK
The Imperial Bank of India during the three and a half decades of its existence recorded an impressive growth in terms of offices, reserves, deposits, investments and advances, the increases in some cases amounting to more than six-fold. The advances, the increases in some cases amounting to more than six-fold. The State Bank of India status and security inherited from its forerunners no doubt provided a firm and durable platform. But the lofty traditions of banking which the Imperial Bank of India consistently maintained and the high standard of integrity it observed in its operations inspired confidence in its depositors that no other State Bank in India could perhaps then equal.

Stamp of Imperial bank of India

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DIFFERENT PRODUCTS OF SBI

DEPOSIT:Saving account, fixed deposit, security deposits, recurring deposit, tax-saver fixed deposit, Advantage woman savings account, rural savings account, peoples savings account, freedom Savings Account, tax saver fixed deposit, salary account, and rural savings account

LOANS:-

Home loans, loan against property, personal loans, car loan, loans against securities, two wheeler, Pre-approved loans, farmer finance, business installment loans, and flexi cash.

DIFFERENT CARDS&CREDIT CARDS:-

Consumer Cards, SBI International cards, life plus senior citizens, SBI Gold Cards, Travel card, SBI Gold Master Cards, Debit Cards, Your City Your Cards, Commercial Cards, corporate cards, Partnership cards, purchase card, SBI employee cards, distribution cards, business cards, SBI Advantage card.

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 NATURE OF THE PROJECT

The project is based on EXPLORATORY RESEARCH DESIGN. It helps in providing a sharper focus on The situation and clear definition of the problem at hand. It emphasizes a discovery of ideas and Possible inside that help in identifying areas of further study. The project provides an opportunity to Study customer satisfaction and play a leading role in the expanding wholesale medicine market Lucknow. AREA OF OPERATION: Aminabad, Gautama budhmarg, Latouche road, Kaiser Bag, Lalbag, Medical College Chowk Above the areas being covered. A feedback form is being filled by the customers which provides information like Name of the unit/firm Date of establishment Type of business/industry Address of unit/firm Unit on rent/lease/owner shop Mobile no. Telephone no. E-mail ID Banking with Credit facility availed If yes, name of the bank Type of credit facility Amount of loan availed If no, type of credit facility required Willing to take loan from SBI Amount of loan required Impression about SBI

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The feedback form filled by customers provides us information about the wholesale medicine market in Lucknow and also includes recommendation and suggestion regarding the same.

OBJECTIVE OF THE STUDY

To retain the Banks Position as the Premier Indian Whole Sale Medicine Market at Lucknow Services Group, with world class standards and significant Global business, committed to excellence in customer, shareholder and employee satisfaction and to play a leading role in the expanding and diversifying Whole Sale Medicine Market at Lucknow services sector while

continuing emphasis, on its development banking role.

RESPONSIBILITIES ASSIGNED BY THE PROJECT MENTOR

Our project mentor gives us the responsibility to take the surveys of wholesale medicine market Which are in various areas in Lucknow To know the nature of the market for acquiring financial services. To enumerate the various players in the market To enumerate the various reasons for customers opting SBI facilities To find out the awareness/knowledge level of customers on the concept by the STATE BANK OF INDIA

NEED OF THE STUDY

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As the banking sector is the fastest growing sectors in current Business World. So it is necessary to have In-depth Knowledge of BANK Products provided by them. And to check Segment Wise Penetration and use of Direct Banking Channels.

THEORETICAL STUDY
MAJOR COMPETITOR

State bank of India at Lucknow has been facing great rivalry and major competition with other public sector banks and some of private commercial banks. State bank of India has many banks as art rival. Some of its art rival.

List of major competitors of SBI

I. II. III. IV. V. VI. VII. VIII.

ICICI Bank Bank of Baroda Canara Bank Punjab National Bank Union bank of India Central bank of India HDFC Bank Oriental bank of Commerce.
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Here especially some of the public sector and private sector banks are giving hardcore competition to the state bank of India. So let us have some of the best banks which is also mentioned above and mentioned below in detail.

ICICI BANK

ICICI bank at Lucknow stands for Industrial Credit and Investment Corporation of India. This ICICI bank at Lucknow is one of the heavy weight banks of private sector of India. It is providing the core competition to the state bank of India at Lucknow of India. Especially in lending money, Investment.

But in profit making state bank of India is standing ahead. And when and where social responsibility of concern state bank of India is heading high than any other banks in India

HDFC BANK

HDFC bank stands for Housing Development Financing Corporation ltd. This is also one of the leading banks of India in private sector. This bank is also providing hardcore competition to all the banks as well as state bank of India

But we mention earlier that state bank of India is ahead in banking India. So HDFC has to work hard to reach at the milestone achieved by state bank of India.

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Bank OF BARODA

Bank of Baroda is also one of the leading public sector banks in India.. This PSU is also providing the tough competition to all other banks in India. The BOB at lucknow is very renowned banks of India today. It is very changed and very professionally working public sector banks

BOB has got professional in recent time so. It has to work very hard to achieve position and reputation which are achieved by State bank of India.

Human resource (1) Learning & Development State bank of India at lucknow has taken up several key initiatives to motivate and retain its manpower. In order to channelize the energy created by the Parivartan campaign, the State bank of India at Lucknow has launched a Landmark exercise for creation of the new Vision Mission & Values statement which will be in place shortly. Young officers are being encouraged to take-up management education by way of sponsorship tie-up with

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the S. P. Jain Institute of Management. 50 officers have been enrolled in the programmed on a trial basis.SBI at lucknow is strong in the areas of training & development through 4 apex level training colleges and 45 learning centres across the country. e-learning project has been launched to enable anywhere, anytime learning.

(2) HRMS For leveraging technology in employee management area, the state bank of India has started automation of its HR processes through SAP-ERP-HRMS software. Once fully implemented, it will not only create a central repository of all employees data but also will make available a variety of services, like online request submission and viewing of individual data etc. to all the employees across the State Bank of India group on an online real time basis. HRMS will bring efficiency in HR operations and help the Management in making employee related decisions faster. Pensioners of SBI, IBI and Associate Banks will also form a part of this initiative and their pension will be processed through HRMS.

(3) Personnel Management State bank of India has launched Performance Linked Incentive Scheme for the Branch managers/AGMs(Region)/ DGMs(Module) and Team Incentive Scheme for the staff members of the Branch. The incentive scheme was launched with the aim of enthusing and motivating the staff members of the Branch so that the state bank of India is placed in a position to face the competition unleashed due to liberalization of economy and
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maintain its lead over others. The scheme has been successful in enthusing the staff and garnering Business for the Bank. (4) Employees Share Purchase Scheme (SBI ESPS-2008) State bank of India also launched Employees Share Purchase Scheme along with the Rights issue with the Objective of providing incentive to Eligible Employees, to stimulate their efforts towards the continued success of state bank of India and to provide a Means to attract, reward and retain talent in the Bank, to reward eligible employees as also to encourage equity ownership by them. The price was fixed at Rs.1590/- (the face value of 1 share is Rs.10/-) per equity share. The Scheme Opened on 28.03.2008 and closed on 30.04.2008.

(5) Industrial Relations A number of HR initiatives such a payment of Performance linked incentives to

staff, rationalization of promotion policies and improvement in various staff loan schemes were taken up during the year. Such initiatives have helped in increasing the motivation level of staff significantly.

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To meet requirement of staff for an ongoing branch expansion programme,

separate recruitment exercises were undertaken to recruit clerical staff for metro/urban centers, rural/semi urban centers and also for Marketing. This also helped in reducing the age profile of staff and posting of younger staff at the front line.

The process of consultation and discussion with both the staff and officers

federations continued during the year.

year.

The industrial relations climate of state bank of india remained cordial during the

(6) Staff Strength State bank of India had a total strength of 1, 79,205 on the 31st March, 2008. Of this, 32.23% are officers, 42.87% clerical staff and the remaining 24.90% were sub-staff.

(7) Implementation of Persons with disabilities (PWD) Act 1995

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Our State Bank of India provides reservation to persons with disabilities (PWDs) as per the guidelines of the Government of India and section 33 of the PWD Act 1995. The total number of persons with disabilities who were employed as on 31.03.2008 was as follows:

(8) Representation of Scheduled Castes and Scheduled Tribes As on the 31st March, 2008, 34802 (19.42%) of the Banks total staff strength, belonged to Scheduled Caste and 11460 (6.30%) belonged to Scheduled Tribes. In order to effectively redress the grievances of the SC/ST employees, Liaison Officers have been designated at all administrative offices of the Bank. Senior officials of the State bank of India hold regular meetings at periodic intervals with the representatives of SC/ST Welfare Federation and SC/ST Welfare Association at Corporate Centre, LHOs and Zonal Offices. The state bank of India conducts workshops on reservation policy for SCs/STs/OBCs. So also, pre recruitment and pre-promotion training programmes are conducted by the State bank of India at Lucknow to enable SC/ST candidates to achieve the prescribed standards to effectively compete with other candidates.

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FINANCIAL PERFORMANCE OF SBI

Agenda Highlights Income Revenue Balance Sheet Assets Stock Performance

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Highlights (in millions) Net revenues Net income Earnings per share Return on net revenues Cash and s/t investments Total Assets Stockholders equity 2010 $x,xxx xxx xxx xx% Xxx $xxx xxxx 2011 $x,xxx xxx xxx xx% xxx $xxx xxxx

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Income Net Revenues Net Income Earning Share

$3, 753 $2, 759

$4, 649 $70 8

$95 3

$1, 146

$1. 21

$1. 57

$1. 88

*09 *10 *11

*09 *10 *11 *09 *10 *11

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Revenue by Division

Division A 16%

Division D 23% Division C 37% Division B 24%

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Balance Sheet

1999

2000

Assets Cash and short-term investments Accounts receivable Inventories Other

$x,xxx xxx xxx xxx

$x,xxx xxx xxx xxx

Total Assets

$x,xxx

$x,xxx

Liabilities Accounts payable Accrued compensation Income taxes payable Other

$x,xxx xxx xxx xxx

$x,xxx xxx xxx xxx

Total Liabilities

$x,xxx

$x,xxx

Shareholders Equity

$x,xxx

$x,xxx

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Assets

ROW 7% AIME 29% Share 52%

loan 12%

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Stock Performance

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SWOT ANALYSIS
S Strength W Weakness O Opportunity T Threat Strength Years of Experience..Century Experienced Employee Large Network Huge Whole Sale Medicine Market for Financing Opportunities by SBI at Lucknow Network

Government Support Safety and Security of Money Transparency in Charges Large income from Loan interest Less interest rate of loan with low charges

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 Weakness

Lack of Young Employee Rigid work culture Physical environment & Ambience Excessive Documentation Bureaucracy Less knowledgeable employee Less control on employee Poor technology Poor recovery system

Opportunity Constant fear in the minds of customers towards private bank. Even expanding rural, urban & International Market. Fraud and cheating with customer from private banking. Dissatisfy from private banking. So much hidden charges of private banks.

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 Threats

Shifting customers preference towards private banks. Private Whole Sale Medicine Market at Lucknow providing more facilities at lower charges.

Quick Dynamic employees and greater technological product.

Young stare are attract towards state bank of India because of speedy and upgrade technology

LIMITATION OF STUDY As we are short of time having only 6-8 weeks for the summer training so we
cant do a deep study.

less number of feedbacks is the limitation of this study

PERIOD OF STUDY

14TH JUNE TO 14TH AUGUST

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 SUGGESTION Proper Co Ordination and Communication between state bank of India and Customer Time to time follow up to customer and their Guarantors Properly check all the documents Proper Valuation of their Assets Strict to recovery Steps When first installment will be due at that time state bank of India have to inform to customer regarding his due installment Whole Terms and Condition explain to customer at the time of sanction the loan Advance reminder for repayment to customer Give target to recover the debt amount. Provide Commission as a motivation to employee who put there effort for reduce the NPAs.

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CONCLUSION
We are happy to getting opportunity to part of State bank of India at Lucknow and also get opportunity to tackle the NPAs Account. During Our Summer Training we meet 150 clients of state bank of India and get their opinion their problems. So, According to that duration we would like to conclude that, Account become NPAs in many way sometimes, Sometimes technical problem, Sometimes personal problem but these all problem will be solved by few precautions which earlier we mentioned. In any state bank of India institution, NPAs are inevitable in the loan portfolio. But efforts should be made to maintain a reasonable level of NPAs. Keeping in mind the RBI plan to introduce the concept of One quarter for identification of NPAs by 2004 , it is a high time to go in for recovery drive on a war-footing. While doing so, prevention of NPAs should not be forgotten. These are the major challenges before banks which have gone in for VRS. But sincerity and hard work along with professional approach on the part of SBI management may help in the fulfillment of challenges. Towards this end, banks have to go long way. If the nationalized commercial banks desire to stand in competition with the private sector banks and the foreign banks, they should over a period of time, be in a position to bring down NPAs to manageable proportion. Moreover, the government should take measures to facilitate the efforts of the banks in the recovery of the loans which currently taken inordinately long time. If willful defaulters to delay the repayment of the loan use the BIFR proceedings the relevant legal provision should be appropriately amended. The fact that the NPAs are gradually going down generates hope about the future of the banks, though we should keep in mind another simple fact that in absolute amount, this has not happened.

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BIBLOGRAPHY

Web Sites: Book: NGB Business bulletin (Date-10/8/13) www.SBI.co.in www.rbi.org.in www.google.com (Date-30/7/13) (Date - 1/8/13) (Date - 1/8/13)

Marketing management by Philip kotler

Magazine& Journals Tata McGraw Hill (Date- 6/8/13)

(Accounting &Whole Sale Medicine Market for Financing Opportunities by SBI at Lucknow

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ANNEXURE

Name of the unit/firm

Date of establishment Type of Business/Industry

Address of the unit/firm Unit on rent/lease/owner shop Mobile no. Telephone no. Email id Banking with Credit facility availed If yes, name of the Bank Type of credit facility Amount of loan availed If no, type of credit facility required Fund Based : Cash Credit/ Term Loan Non Fund Based : LC/BG Willing to take loan from SBI Cash Credit/Term Loan Y/N

Amount of Loan required Impression about SBI Excellent/Good/Average/Below Average

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