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ON
“A STUDY ON CUSTOMER SATISFACTION TOWARDS
BANKING SERVICES OF STATE BANK OF INDIA IN
KOLKATA REGION”
IN FULFILMENT OF
BACHELOR IN BUSSINESS ADMINSTRATION (BBA)
SESSION (2014 - 2017)
Submitted by:
Name: Vishal Jaiswal
University Registration No: 141942010038 of 2014-2015
University Roll No: 19405014038
1
DECLARATION
The report embodies the finding based on my study and observation and
has notbeen submitted earlier for the award of any degree or diploma to
ADDRESS: Howrah
2
CERTIFICATE
satisfactory.
Signature of Guide
3
“A STUDY ON CUSTOMER
SATISFACTION TOWARDS
BANKING SERVICES OF STATE
BANK OF INDIA IN KOLKATA
REGION”
4
TABLE OF CONTENT
1. CHAPTER -1 7-27
Introduction of BankingServices
2. CHAPTER -2 29-52
Introduction of the company
Objective
Scope
Limitation
3. CHAPTER -3 54-80
Data analysis and interpretation
4. CHAPTER -4 82-86
Findings
Suggestion of the study
Conclusion
5. Reference 87
Questionnaire 88-91
5
Chapter-1
6
INTRODUCTION OF BANKING
DEFINITION OF BANK:-
Banking Means "Accepting Deposits for the purpose of lending or Investment of
deposits of money from the public, repayable on demand or otherwise and withdraw by
According to another viewpoint banking is derived from German word "Branck" which
mean heap or mound. In England, the issue of paper money by the government was
ORIGIN OF BANKING:
Its origin in the simplest form can be traced to the origin of authentic history. After
recognizing the benefit of money as a medium. The origin of the word bank is shrouded
in mystery. According to one view point the Italian business house carrying on crude
from of banking were called “bancheri" According to viewpoint banking is derived from
German word "Branck" which mean heap or mound. In England, the issue of paper
Its origin in the simplest form can be traced to the origin of authentic history. After
7
developed as it provides the safer place to store the money. This safe place ultimately
evolved in to financial institutions that accepts deposits and make loans i.e., modern
the safer place to store the money. This safe place ultimately evolved in to financial
institutions that accepts deposits and make loans i.e., modern commercial banks.
Without a sound and effective banking system in India it cannot have a healthy economy.
The banking system of India should not only be hassle free but it should be able to meet
new challenges posed by the technology and any other external and internal factors.
For the past three decades India's banking system has several outstanding achievements to
its credit. The most striking is its extensive reach. It is no longer confined to only
metropolitans or cosmopolitans in India. In fact, Indian banking system has reached even
to the remote corners of the country. This is one of the main reasons of India's growth
process.
Banking in India has its origin as early or Vedic period. It is believed that the transitions
from many lending to banking must have occurred even before Manu, the great Hindu
furriest, who has devoted a section of his work to deposit and advances and laid down
rules relating to the rate of interest. During the mogul period, the indigenous banker
played a very important role in lending money and financing foreign trade and commerce.
8
During the days of the East India Company it was the turn of agency house to carry on the
banking business. The General Bank of India was the first joint stock bank to be
established in the year 1786. The other which followed was the Bank of Hindustan and
Bengal Bank. The Bank of Hindustan is reported to have continued till 1906. While other
two failed in the meantime. In the first half of the 19th century the East India Company
established there banks, the bank of Bengal in 1809, the Bank of Bombay in 1840 and the
Bank of Bombay in1843. These three banks also known as the Presidency banks were the
independent units and functioned well. These three banks were amalgamated in 1920 and
new bank, the Imperial Bank of India was established on 27th January, 1921.
With the passing of the State Bank of India Act in 1955 the undertaking of the Imperial
Bank of India was taken over by the newly constituted SBI. The Reserve Bank of India
(RBI) which is the Central bank was established in April, 1935 by passing Reserve bank
of India act 1935. The Central office of RBI is in Mumbai and it controls all the other
In the wake of Swadeshi Movement, number of banks with the Indian management were
established in the country namely, Punjab National Bank Ltd., Bank of India Ltd., Bank
of Baroda Ltd., Canara Bank. Ltd. on 19th July 1969, 14 major banks of the country were
nationalized and on 15th April 1980, 6 more commercial private sector banks were taken
The first bank in India, though conservative, was established in 1786. From 1786 till
today, the journey of Indian Banking System can be segregated into three distinct phases.
9
Nationalization of Indian Banks and up to 1991 prior to Indian banking sector
Reforms.
New phase of Indian Banking System with the advent of Indian Financial &
1)Phase I
The General Bank of India was set up in the year 1786. Next came Bank of Hindustan
and Bengal Bank. The East India Company established Bank of Bengal (1809), Bank of
Bombay (1840) and Bank of Madras (1843) as independent units and called it Presidency
Banks.
These three banks were amalgamated in 1920 and Imperial Bank of India was established
In 1865 Allahabad Bank was established and first time exclusively by Indians, Punjab
National Bank Ltd. was set up in 1894 with headquarters at Lahore. Between 1906 and
1913, Bank of India, Central Bank of India, Bank of Baroda, Canara Bank, Indian Bank,
and Bank of Mysore were set up. Reserve Bank of India came in 1935.
During the first phase the growth was very slow and banks also experienced periodic
failures between 1913 and 1948. There were approximately 1100 banks, mostly small. To
streamline the functioning and activities of commercial banks, the Government of India
came up with The Banking Companies Act, 1949 which was later changed to Banking
Regulation Act 1949 as per amending Act of 1965 (Act No. 23 of 1965). Reserve Bank of
India was vested with extensive powers for the supervision of banking in India as the
10
During those day’s public has lesser confidence in the banks. As an aftermath deposit
mobilization was slow. Abreast of it the savings bank facility provided by the Postal
department was comparatively safer. Moreover, funds were largely given to traders.
2)Phase II
Government took major steps in this Indian Banking Sector Reform after independence.
In1955, it nationalized Imperial Bank of India with extensive banking facilities on a large
scale especially in rural and semi-urban areas. It formed State Bank of India to act as the
principal agent of RBI and to handle banking transactions of the Union and State
Seven banks forming subsidiary of State Bank of India was nationalized in 1960 on 19th
July, 1969, major process of nationalization was carried out. It was the effort of the then
Prime Minister of India, Mrs. Indira Gandhi. 14 major commercial banks in the country
was nationalized.
Second phase of nationalization Indian Banking Sector Reform was carried out in 1980
with seven more banks. This step brought 80% of the banking segment in India under
Government ownership.
11
1969: Nationalization of 14 major banks.
After the nationalization of banks, the branches of the public sector bank India rose to
Banking in the sunshine of Government ownership gave the public implicit faith and
3)Phase III
This phase has introduced many more products and facilities in the banking sector in its
set up by his name which worked for the liberalization of banking practices. The country
is flooded with foreign banks and their ATM stations. Efforts are being put to give a
satisfactory service to customers. Phone banking and net banking is introduced. The
entire system became more convenient and swift. Time is given more importance than
money. The financial system of India has shown a great deal of resilience. It is sheltered
from any crisis triggered by any external macroeconomics shock as other East Asian
Countries suffered. This is all due to a flexible exchange rate regime, the foreign reserves
are high, the capital account is not yet fully convertible, and banks and their customers
12
BANKS IN INDIA:-
In India the banks are being segregated in different groups. Each group has their own
benefits and limitations in operating in India. Each has their own dedicated target market.
Few of them only work in rural sector while others in both rural as well as urban. Many
even are only catering in cities. Some are of Indian origin and some are foreign players.
All these details and many more is discussed over here. The banks and its relation with
the customers, their mode of operation, the names of banks under different groups and
One more section has been taken note of is the upcoming foreign banks in India. The RBI
has shown certain interest to involve more of foreign banks than the existing one recently.
This step has paved a way for few more foreign banks to start business in India.
13
(26) (25) (29) (95)
Public sector banks are those banks which are owned by the Government. The Govt. runs
these Banks. In India 14 banks were nationalized in 1969 & in 1980 another 6 banks were
also nationalized. Therefore in 1980 the number of nationalized bank 20. At present there
are total 26 Public Sector Banks in India (As on 26-09-2009). Of these 19 are nationalised
&associates group and 1 bank (IDBI Bank) is classified as other public sector bank.
14
Nationalized banks Other SBI & its Associates
Public
Sector
Allahabad Bank Banks State Bank of India
Andhra Bank
Bank Of Baroda
Bank Of India State Bank of Hyderabad
IDBI
Bank Of (Industrial
Maharashtra Development State Bank of Mysore
Canara Bank
Bank Of
Central Bank Of
India)Ltd.
India State Bank of Patiala
Corporation Bank
Dena Bank
Indian Bank State Bank of Travancore
Indian Overseas
Bank
State Bank of Bikaner
Oriental Bank Of
And Jaipur
Commerce
Punjab & Sind
Bank
Punjab National
Bank
Syndicate Bank
(State Bank of Saurastra merged
UCO Bank
Union Bank Of with SBI in the year 2008 and
India State Bank of Indore In 2010)
United Bank Of
India
Vijay Bank
15
Private Sector Banks
These banks are owned and run by the private sector. Various banks in the country such
as ICICI Bank, HDFC Bank etc. An individual has control over there banks in preparation
Private banking in India was practiced since the beginning of banking system in India.
The first private bank in India to be set up in Private Sector Banks in India was IndusInd
Bank. It is one of the fastest growing Bank Private Sector Banks in India. IDBI ranks the
tenth largest development bank in the world as Private Banks in India and has promoted
world class institutions in India. The first Private Bank in India to receive an in principle
approval from the Reserve Bank of India was Housing Development Finance Corporation
Limited, to set up a bank in the private sector banks in India as part of the RBI's
HDFC Bank Limited with registered office in Mumbai and commenced operations as
Scheduled Commercial Bank in January 1995. ING Vysya, yet another Private Bank of
16
Private sector banks have been subdivided into following 2 categories:-
17
Foreign Banks In India
by the role assigned to cooperative, the expectations the cooperative is supposed to fulfil,
their number, and the number of offices the cooperative bank operate. Though the
cooperative movement originated in the West, but the importance of such banks have
assumed in India is rarelyparalleled anywhere else in the world. The cooperative banks in
India plays an important role even today in rural financing. The businesses of cooperative
18
bank in the urban areas also has increased phenomenally in recent years due to the sharp
Cooperative Banks in India are registered under the Co-operative Societies Act. The
cooperative bank is also regulated by the RBI. They are governed by the Banking
Regulations Act 1949 and Banking Laws (Co-operative Societies) Act, 1965.
Banks in those days mainly focussed upon the agro sector. Regional rural banks in India
penetrated every corner of the country and extended a helping hand in the growth process
of the country.
SBI has 30 Regional Rural Banks in India known as RRBs. The rural banks of SBI is
spread in 13 states extending from Kashmir to Karnataka and Himachal Pradesh to North
East. The total number of SBIs Regional Rural Banks in India branches is 2349 (16%).
Till date in rural banking in India, there are 14,475 rural banks in the country of which
Apart from SBI, there are other few banks which functions for the development of the
The Haryana State Cooperative Apex Bank Ltd. commonly called as HARCOBANK
plays a vital role in rural banking in the economy of Haryana State and has been
19
providing aids and financing farmers, rural artisans, agricultural labourers,
NABARD
development bank in the sector of Regional Rural Banks in India. It provides and
regulates credit and gives service for the promotion and development of rural
sectors mainly agriculture, small scale industries, cottage and village industries,
handicrafts. It also finance rural crafts and other allied rural economic activities to
promote integrated rural development. It helps in securing rural prosperity and its
connected matters.
is the first of its kind in rural banks of India. The impressive story of its inception
United Bank of India (UBI) also plays an important role in regional rural banks. It
has expanded its branch network in a big way to actively participate in the
developmental of the rural and semi-urban areas in conformity with the objectives
of nationalization.
Syndicate Bank
Syndicate Bank was firmly rooted in rural India as rural banking and have a clear
vision of future India by understanding the grassroot realities. Its progress has
been abreast of the phase of progressive banking in India especially in rural banks.
20
Fact Files of Banks in India
The first Bank in Northern India to get ISO 9002 certification Punjab and
Sind Bank
for their selected branches.
The first Indian Bank to have been started solely with Indian capital. Punjab
National Bank
The first among the Private Sector Banks in Kerala to become Scheduled Bank in South Indian
India’s oldest, largest and the most successful commercial bank offering the widest State Bank of
possible range of domestic, international and NRI products and services, through its India
21
India’s second largest Private Sector Bank and is now the largest scheduled The Federal
Bank which started as Private Shareholders Banks, mostly European shareholders. Imperial Bank
of India
The first Indian Bank to open a branch outside India in London in 1946 and the first
Founded in
1906 in
Mumbai.
The oldest Public Sector Bank in India having branches all over India and serving Allahabad
22
The first Indian Commercial Bank which was wholly owned and managed by Central Bank
Indians. of India
The country’s middle class accounts for over 320 million People. In correlation with the
growth of the economy, rising income levels, increased standard of living, and
expansion of retail and rural banking. Players are becoming increasingly customer -
centric in their approach, which has resulted in innovative methods of offering new
banking products and services. Banks are now realizing the importance of being a big
player and are beginning to focus their attention on mergers and acquisitions to take
advantage of economiesof scale and/or comply with Basel II regulation. “Indian banking
industry assets are expected to reach US$1 trillion by 2010 and are poised to receive a
group and author of the report. “The banking industry should focus on having a small
number of large players that can compete globally rather than having a large number of
fragmented players.
23
Chapter-2
24
COMPANY PROFILE:-
COMPANY OVERVIEW:-
State Bank of India (SBI) is an Indian multinational, public sector banking and financial
Maharashtra. On 01.04.2017, State Bank of India, which is India's large Bank merged
five of its Associate Banks (State Bank of Bikaner & Jaipur, State Bank of Hyderabad,
State Bank of Mysore, State Bank of Patiala and State Bank of Travancore) and
BharatiyaMahila Bank with itself. This is the first ever large scale consolidation in the
Indian Banking Industry. With the merger, State Bank of India will enter the league of top
50 global banks with a balance sheet size of ₹41 trillion, 277,000 employees, 500 million
customers, and more than 22,500 branches and 58,000 ATMs. SBI's market share will
increase to 22 percent from 17 per cent. [3] It has 198 offices in 37 countries; 301
correspondents in 72 countries. [4]. The company is ranked 232nd on the “Fortune Global
State Bank of India is one of the Big Four banks of India, along with ICICI
The bank traces its ancestry to British India, through the Imperial Bank of India, to the
the Indian Subcontinent. Bank of Madras merged into the other two presidencies
banks—Bank of Calcutta and Bank of Bombay—to form the Imperial Bank of India,
which in turn became the State Bank of India. Government of India owned the Imperial
25
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.
HISTORY OF SBI:-
The roots of the State Bank of India lie in the first decade of the 19th century, when
the Bank of Calcutta, later 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
Madras (incorporated on 1 July 1843). All three Presidency banks were incorporated as
joint and were the result of royal charters. These three banks received the exclusive right
to issue paper currency till 1861 when, with the Paper Currency Act, the right was taken
1921, and the re-organized banking entity took as its name Imperial Bank of India. The
Imperial Bank of India remained a joint stock company but without Government
participation.
26
Seal of Imperial Bank of India
Pursuant to the provisions of the State Bank of India Act of 1955, the Reserve Bank of
India, which is India's central bank, acquired a controlling interest in the Imperial Bank
of India. On 1 July 1955, the Imperial Bank of India became the State Bank of India. In
2008, the government of India acquired the Reserve Bank of India's stake in SBI so as to
remove any conflict of interest because the RBI is the country's banking regulatory
authority.
In 1959, the government passed the State Bank of India (Subsidiary Banks) Act, which
September 2008, when the State Bank of Saurashtra merged with SBI.
SBI has acquired local banks in rescues. The first was the Bank of Behar (est. 1911),
which SBI acquired in 1969, together with its 28 branches. The next year SBI acquired
National Bank of Lahore (est. 1942), which had 24 branches. Five years later, in 1975,
27
SBI acquired KrishnaramBaldeo Bank, which had been established in 1916 in Gwalior
State, under the patronage of Maharaja Madho Rao Scindia. The bank had been
the “DukanPichad”, a small moneylender, owned by the Maharaja. The new bank's first
manager was Jall N. Broacha, a Parsi. In 1985, SBI acquired the Bank of Cochin
in Kerala, which had 120 branches. SBI was the acquirer as its affiliate, the State Bank
The State Bank of India and all its associate banks are identified by the same
blue “keyhole” logo. The State Bank of India wordmark usually has one standard
BUSINESS OF SBI:-
The business of the banks was initially confined to discounting of bills of exchange or
28
other negotiable private securities, keeping cash accounts and receiving deposits and
issuing and circulating cash notes. Loans were restricted to Rs. 1Lakh and the period of
accommodation confined to three months only. The security for such loans was public
securities, commonly called Company's Paper, bullion, treasure, plate, jewels, or goods
'not of a perishable nature' and no interest could be charged beyond a rate of twelve per
cent. Loans against goods like opium, indigo, salt woolens, cotton, cotton piece goods,
mule twist and silk goods were also granted but such finance by way of cash credits
gained momentum only from the third decade of the nineteenth century. All commodities,
including tea, sugar and jute, which began to be financed later, were either pledged or
hypothecated to the bank. Demand promissory notes were signed by the borrower in
favorof the guarantor, which was in turn endorsed to the bank. Lending against shares of
the banks or on the mortgage of houses, land or other real property was, however,
forbidden.
Indians were the principal borrowers against deposit of Company's paper, while the
business of discounts on private as well as salary bills was almost the exclusive monopoly
of individuals Europeans and their partnership firms. But the main function of the three
banks, as far as the government was concerned, was to help the latter raise loans from
time to time and also provide a degree of stability to the prices of government securities.
29
Main Branch of SBI in Kolkata.
OPERATIONS:-
SBI provides a range of banking products through its network of branches in India and
overseas, including products aimed at Non Resident Indians (NRIs). SBI has 14
regional hubs and 57 Zonal Offices that are located at important cities throughout India.
DOMESTIC PRESENCE:-
SBI has 18,354 branches in India. In the financial year 2012–13, its revenue was 2.005
revenue. Similarly, domestic operations contributed to 88.37% of total profits for the
Government in August 2014, SBI held 11,300 camps and opened over 3 million accounts
by September, which included 2.1 million accounts in rural areas and 1.57 million
INTERNATIONAL PRESENCE:-
30
As of 2014–15, the bank had 191 overseas offices spread over 36 countries having the
largest presence in foreign markets among Indian banks. It has branches in Singapore,
Moscow, Colombo, Dhaka, Frankfurt, Hong Kong, Tehran, Johannesburg, London, Los
Angeles, Male in the Maldives, Muscat, Dubai, New York, Osaka, Sydney, and Tokyo. It
has offshore banking units in the Bahamas and Bahrain, and representative offices in
The Canadian subsidiary SBI Canada Bank (previously State Bank of India [Canada])
also dates to 1982. It has six branches, four in the Toronto area and two in
Ltd in Mauritius. SBI International (Mauritius) Ltd amalgamated with The Indian Ocean
International Bank, which has been doing retail banking business in Mauritius since 1979
with the new name, SBI (Mauritius) Ltd. Today, SBI (Mauritius) Ltd is having fully
integrated 14 branches.13 Retail Branches covering major cities and town of Mauritius,
including Rodrigues, and 1 Global Business Branch at Ebene in Mauritius. Apart from
Branch Banking, customers also have the convenience of 24x7 ATM Banking at 18
ATMs across the country. Bank also has 24x7 robust Internet Banking Channel enabling
SBI Sri Lanka now has three branches located in Colombo, Kandy and Jaffna. The
Jaffna branch was opened on 9 September 2013. SBI Sri Lanka, the oldest bank in Sri
31
State Bank of India (S.B.I.) Branch at TsimShaTsui, Hong Kong
In 1982, the bank established a subsidiary, State Bank of India, which now has ten
branches—nine branches in the state of California and one in Washington, D.C. The 10th
branch was opened in Fremont, California on 28 March 2011. The other eight branches in
California are located in Los Angeles, Artesia, San Jose, Canoga Park, Fresno, San
The Israeli branch of the State Bank of India located in Ramat Gan
32
In Nigeria, SBI operates as INMB Bank. This bank began in 1981 as the Indo–Nigerian
Merchant Bank and received permission in 2002 to commence retail banking. It now has
In Nepal, SBI owns 49% of SBI Nepal (State Bank in Nepal) share with Nepal
Government owing the rest and SBI NEPAL has branches throughout the country in each
and every city as banking has become the major part of daily life for Nepalese people.
In Moscow, SBI owns 60% of Commercial Bank of India, with Canara Bank owning the
The State Bank of India already has a branch in Shanghai and plans to open one
in Tianjin.
In Kenya, State Bank of India owns 76% of Giro Commercial Bank, which it acquired
In January 2016, SBI opened its first branch in Seoul, South Korea following the
ASSOCIATE BANKS:-
SBI acquired the control of seven associate banks in 1960. They were the seven regional
banks of former Indian princely states, all of them which were renamed with the prefix
33
“State Bank”. These seven banks were State Bank of Bikaner and Jaipur (SBBJ), State
Patiala (SBP), State Bank of Travancore (SBT), State Bank of Saurashtra (SBS) and State
Bank of Indore (SBI - Indore). All these banks used the same logo as its parent bank.
The plans for making SBI a mega bank with trillion dollar business by merging associate
banks started in 2008, and in September the same year, SBS merged with SBI. The very
next year, SBI-Indore also merged. In the same year, another subsidiary
named BharatiyaMahila Bank was formed. The negotiations for merging of 6 associate
banks (State Bank of Bikaner and Jaipur, State Bank of Hyderabad, State Bank of
Mysore, State Bank of Patiala and State Bank of Travancore and BharatiyaMahila Bank)
by acquire their businesses including assets and liabilities with SBI started in 2016. The
merger of these six subsidiaries was approved by Union Cabinet on 15 June 2016. The
State Bank of India and all its associate banks use the same blue “keyhole” logo. The
State Bank of India wordmark usually has one standard typeface, but also utilises other
typefaces.
On 15 February 2017, the Union Cabinet approved the merger of five associate banks
with SBI.
34
The State Bank of Bikaner & Jaipur, State Bank of Hyderabad, State Bank of
Mysore, State Bank of Patiala and State Bank of Travancore, and BharatiyaMahila
Bank were merged with State Bank of India with effect from 1 April 2017.
NON-BANKING SUBSIDIARIES:-
Apart from its five associate banks, SBI also has the following non-banking subsidiaries:-
In March 2001, SBI (with 74% of the total capital), joined with BNP Paribas (with 26%
of the remaining capital), to form a joint venture life insurance company named SBI Life
Insurance company Ltd. In 2004, SBI DFHI (Discount and Finance House of India) was
SBI. Life Insurance Corporation of India is the largest non-promoter shareholder in the
Shareholders Shareholding
35
Promoters: Government of India 62.22%
FIIs/GDRs/OCBs/NRIs 9.12%
Others 9.6%
Total 100.0%
The equity shares of SBI are listed on the Bombay Stock Exchange, where it is a
constituent of the BSE SENSEX index, and the National Stock Exchange of India, where
Its Global Depository Receipts (GDRs) are listed on the London Stock Exchange.
EMPLOYEE:-
SBI is one of the largest employers in the country having 222,033 employees as on 31
March 2014, out of which there were 45,132 female employees (20%) and 2,610 (1%)
employees with disabilities. On the same date, SBI had 42,744 Schedule Caste (19%) and
17,243 Schedule Tribe (8%) employees. The percentage of Officers, Assistants and Sub-
staff was 36%, 46% and 18% respectively on the same date “Hiring drive”. 1,776
Assistants and 1,394 Officers joined the Bank in FY 2013-14, for expansion of the branch
36
branches. “Staff productivity” as per its Annual Report for FY 2013-14, each employee
SBI was ranked as the top bank in India based on tier 1 capital by The
SBI was ranked 232nd in the Fortune Global 500 rankings of the world's biggest
SBI was named the 29th most reputed company in the world according
SBI was 50th Most Trusted brand in India as per the Brand Trust Report 2013, an
annual study conducted by Trust Research Advisory, a brand analytics company and
subsequently, in the Brand Trust Report 2014, SBI finished as India's 19th Most
COMPETITORS:-
Some of the major competitors for SBI in the banking sector are large private sector
banks ICICI Bank, HDFC Bank, Axis Bank, IndusInd Bank, small regional banks and
other public sector banks Canara Bank, Bank of India and Bank of Maharashtra.
However, in terms of average market share, SBI is by far the largest player in the market.
SBI has its roots since 1806 which was later transformed under various names, finally
SBI Was established after the act in parliament on May 1955. In the year 1959 SBI took
over 8 state owned banks and since then it started to grow up carrying its heritage of
37
servicing people at various economic levels. SBI has its roots since 1806 which was later
transformed under various names, finally SBI Was established after the act in parliament
on May 1955. In the year 1959 SBI took over 8 state owned banks and since then it
started to grow up carrying its heritage of servicing people at various economic levels.
Strengths:-
SBI is the largest bank in India in terms of market share, revenue and assets.
As per recent data the bank has more than 17,000 outlets and 43,515 ATM center.
The bank has its presence in 34 countries engaging currency trade all over the world
The bank has a merged with State Bank of Saurashtra, State bank of Indore, State
Bank of Bikaner & Jaipur ,State Bank of Hyderabad ,State Bank of Mysore ,State
SBI has recently changed its vision and mission statements showing a sign of
Weakness:-
Employees show reluctance to solve issues quickly due to higher job security and
SBI has the largest number of employees in banking sector, hence the bank spends a
In spite of modernization, the bank still carries the perception of traditional bank to
38
SBI fails to attract salary accounts of corporate and many government sector
employees salary accounts are also shifted to private bank for ease of operations
unlike before.
Opportunities:-
SBI’s merger with more banks namely State Bank of Hyderabad, State bank of
Patiala, State bank of Bikaner and Jaipur, State of bank of Travancore and State bank
Mergers will result in expansion of market share to defend its number one position.
SBI is planning to expand and invest in international operations due to good inflow of
Since the bank is yet to modernize few of its banking operations, there is a better
Young and talented pool of graduates and B schools are in rise to open new horizon to
Threats:-
FDIs allowed in banking sector is increased to 49% , this is a major threat to SBI as
people tend to switch to foreign banks for better facilities and technologies in banking
service.
Other government banks like PNB, Andhra, Allahabad bank and Indian bank are
showing.
Customer prefer to switch to private banks and financial service providers for loans
and mortgages, as SBI involves stringent verification procedures and take long time
for processing.
39
DEPOSIT LOANS CARDS DIFFERENT
CREDIT CARDS
Savings Home Consumer SBI
Account Loans Cards International
cards
40
Account Services
PASSBOOK:-
CUSTOMER SATISFACTION:-
The report contains the brief description of the state bank of India. It contains the finding
and analysis of the survey conducted to gather primary data to judge the importance of
various attributes that influence the satisfaction of customer in different manner and to the
different extent. These attributes are classified as initial experience, service delivery
experience, relationship experience and grievance handling. Further an attempt has been
41
Customer satisfaction, a term frequently used in marketing, is a measure of how products
customers, whose reported experience with a firm, its products, or its services (ratings)
exceeds specified satisfaction goals”. Customer service proves to be one of the most
enhance the level of customer satisfaction – that is, the feeling that a product or service
Customer satisfaction in the banking industry play a vital role to create a healthy business
status being services based industry. In any services based industry customer service is at
banking industry customer are more directly linked with the bank’s personnel for any
kind of services or product. Therefore, banks should always focus on training its front
desk staff to provide quality service knowing their expectation and wants.
Customer satisfaction is an ambiguous and abstract concept and the actual manifestation
of the state of satisfaction will vary from person to person and product/service to
physical variables which correlate with satisfaction behaviors such as return and
recommend rate. The level of satisfaction can also vary depending on other options the
customer may have and other products against which the customer can compare the
organization's services.
42
At the same time, several banking institutions are experiencing increasing level of retail
customer dissatisfaction.
Research suggests that customer dissatisfaction is still the major reason of bank customers
for which they switch to other banks. This dissatisfaction could be because of a variety of
reasons. Excellent service quality is not an optional competitive strategy which may, or
may not, be adopted to differentiate one bank from another: today it is essential to
corporate profitability and survival. The connection between service quality and corporate
profitability is now seen to depend on high levels of customer satisfaction, the successful
To find out the types of banking services are availed by the customers.
To study the customer satisfaction regarding the services provided by the bank.
43
SCOPE OF THE STUDY:-
The present study was undertaken to know the preference of the customer towards state
bank of India (SBI). The problem of the customer is they are not aware of the services
provided by their bank. The study also force on the customer perception that how the
In my study I have used both primary sources of data as well as secondary sources of
data.
The study covers the service providers and users of ―STATE BANK OF INDIA.
The study has put forward the Customers as well as acceptability behavior for the
services.
Only selected Branches and Banks have been considered for the study.
The sample of size is limited to 30 only and the sample size may not represent whole
market.
44
Chapter-3
45
DATA ANALYSIS AND INTERPRETATION:-
RESEARCH METHODOLOGY:-
Research methodology is a methodology for collecting all sorts of information & data
pertaining to the subject in question. The objective is to examine all the issues involved &
conduct situational analysis. The methodology includes the overall research design,
sampling procedure & fieldwork done & finally the analysis procedure. The
methodology used in the study consistent of sample survey using both primary &
secondary data.
COLLECTION OF DATA:-
The data can be collected from primary and secondary sources. The basic premises of my
study are primary data. Convenient sample that was representative of the target market
was chosen, the respondents were contacted personally and the instrument used for
2) Secondary Sources
PRIMARY DATA:-
Primary data is collected by using the structured questionnaire.
SECONDARY DATA:-
The Main sources of Secondary data are combination of information from the internet and
46
SAMPLE SIZE:-
Sample of 30 people was taken into study, and their data was collected.
SAMPLING TECHNIQUE:-
DATA ANALYSIS:-
After data collection, it is analyzed according to customer’s views, ideas and opinions
related to services of the state bank of India and SBI will come to know the customer
requirements.
DATA INTERPRETATION: -
Interpretation of data is done by using statistical tools like Pie diagrams, Bar graphs, and
also using quantitative techniques (by using these techniques) accurate information is
obtained.
Table no.1
PARTICULARS RESPONDENTS
MALE 17
FEMALE 13
47
Figure no.1
GENDER
As per the graph, in the group of below 18 there were more no. of female who’s SBI bank
account more than male. I also came to know in mature male above age of 18 and age
between 25-40 uses sbi account more than female. According to my survey 64% male
PARTICULARS RESPONDENTS
<18 0
18-25 13
25-40 7
40-60 8
>60 2
48
Figure no.2
AGE
7%0%
<18 18-25
27% 43%
25-40 40-60
>60
23%
When I did survey of 30 people I came to know in the group of below 18 there were no
people who was SBI bank account. I also came to know that in the group of 18-25 there
are 43% people followed by 23% in 25-40, 27% in 7% in 40-60 and 7% are of above age
60.
PARTICULARS RESPONDENTS
SALARIED 7
BUSINESSMAN 4
PROFESSIONAL 5
HOUSEWIFE 2
OTHERS 12
49
Figure no.3
OCCUPATION
14
12
12
10
8 7
6 5
4
4
2
2
0
1
According to my survey 23% salaried respondent uses sbi bank account. 13%
businessman/women respondent uses sbi bank account. 17%professional person uses sbi
Table no.4
PARTICULARS RESPONDENTS
<100000 12
100000-250000 13
250000-400000 4
>400000 1
50
Figure no.4
According to my survey 40% of the respondent uses SBI bank account whose income was
below Rs.1, 00,000. 44% of the respondent uses SBI bank account whose income was
between Rs.1, 00,000 –Rs.2, 50,000. 13% of the respondent uses SBI bank account whose
income was between Rs.2, 50,000-Rs.4, 00,000 and 3% are the people whose income is
above 400000.
Table no.5
PARTICULARS RESPONDENTS
Atm service 3
Location advantage 6
Any other 1
51
Figure no.5
Any other
When question was asked what are the most important reason for choosing SBI bank then
20% said because of it is near by their location, 13% said because of its service, 13%
choose because they have traditional account, 34% choose because of its brand name.
10% choose because of Atm. 7% for net banking, 3% for any other reason.
Table no.6
PARTICULARS RESPONDENTS
Saving account 13
current account 2
NRI account 0
fixed deposit 4
other 1
52
Figure no.6
13
2 0 1
According to my survey 65% of respondent uses sbi bank for saving account, 10% uses
for the current account, 20% uses for fixed deposit and 5% for any other services.
PARTICULARS RESPONDENTS
<1 year 4
1 to 2 year 4
2 to 3 year 8
3 to 4 year 1
4 to 5 year 3
53
Figure no.7
<1 year
13%
1 to 2 year
34%
13% 2 to 3 year
3 to 4 year
10% 27% 4 to 5 year
3%
more than 5 year
According to my survey 13% of respondent are using SBI bank account for less than
1year, 1 to 2 years,and 27% for 2 to 3 years, 3% for 3 to 4 years, 10% for 4 to 5 years and
Table no.8
PARTICULARS RESPONDENTS
Yes 20
No 6
Not Aware 4
54
Figure no.8
1 6
20
0 5 10 15 20 25
When question was asked whether your bank provide core banking facility to the
customer than 67% people agree to that, 20% disagreed and the rest 13% were not aware.
PARTICULARS RESPONDENTS
ATM 17
Loan 5
Net banking 4
Phone banking 2
Mobile banking 8
Interest package 2
Any other 5
55
Figure no.9
ATM
11% Loan
5% Early cheque clearance
39%
Net banking
18%
Phone banking
5% Mobile banking
9% 2% 11%
Interest package
Any other
When question was asked which service satisfies you most then 39% said its ATM
because it is easy to use and nearby their location.9% Think that is netbanking is quite
better. 5% are satisfied with about interest rate which is offered by the bank. 2%think
cheque get clear very early and 11% think it is quite easy to take loan from SBI bank .5 %
think its phone banking service is really good and rest of the 11 % satisfied with its other
services.
PARTICULARS RESPONDENTS
To make deposit 17
To withdraw cash 0
56
REASON FOR TYPICALLY
VISITING THE BRANCH
27% 28%
5%
24% 16%
According to my survey 28% respondent visits the branch for making deposit. 5% visit to
get device for investment.16% visits for to the enquiry about balance. 24% to withdraw
57
11.If you are provided with better service by optional bank. Would you like to move
to other bank.
Table no.11
PARTICULARS RESPONDENTS
Yes 18
No 12
Figure no.11
12
18
0 2 4 6 8 10 12 14 16 18 20
No Yes
When question was asked would you like to move other bank if you are provided with
good services then 60% wants to move in another bank while remaining 40% want to stay
58
12.Are you satisfied with your financial transactions with the bank?
Table no.12
PARTICULARS RESPONDENTS
VERY 18
SATISFIED
SATISFIED 6
SOMEWHAT 4
SATISFIED
DISSATISFIED 2
Figure no.12
7%
13%
VERY SATISFIED
SATISFIED
SOMEWHAT SATISFIED
20% 60%
DISSATISFIED
According to my survey 60% of respondent said that they are very satisfied with
the financial transactions of the bank while 20% said that they are happy with its
services. 13% think its services are quite satisfied while remaining 7% are not
59
13. DO YOU USE THE SERVICE OF ALTERNATIVE BANK.
Table no.13
PARTICULARS RESPONDENTS
Yes 19
No 11
Figure no.13
37%
Yes
No
63%
When the question was asked whether the customer uses the services of alternative
bank than it was found that 63% use the service 0f other bank and 37% do not use any
60
14.Would you recommend this bank to your friends, relatives, associates?
Table no.14
PARTICULARS RESPONDENTS
Yes 25
No 5
Figure no.14
RECCOMENDATION TO FRIENDS
Yes No
25
When the question was asked whether the SBI customers are comfortable to
recommend their bank to others than 83% people agreed to that and 17% people
61
15. When you think of your bank what comes first in your mind.
Table no.15
PARTICULARS RESPONDENTS
PERSONALIZED 3
SERVICE
WIDE BRANCH 16
NETWORK
CUSTOMER 7
SERVICE
COMPUTERIZED 2
BANKING
Core Banking 2
Figure no.15
COMPUTERIZED
53% BANKING
Core Banking
62
When the question was asked what comes first in your mind about SBI bank 53% said it
has wide branch network. 23% thinks its customer services. 10% said its personalized
services. 7% think its computerized banking and 7% think of its core banking.
16.Do you always get prompt services when you visit the branch.
Table no.16
PARTICULARS RESPONDENTS
Always 9
Often 9
Sometimes 6
Rarely 4
Never 2
Figure no.16
7%
13% 30% Always
Often
20% Sometimes
30% Rarely
Never
63
According to my survey it was found that 30% always get the prompt services. 30% often
get the prompt services. 20% sometimes get the prompt services. 13% rarely get the
17.How quickly were your banking problems and issues addressed by the bank
staff?
Table no.17
PARTICULARS RESPONDENTS
Immediately 4
Within 24 hours 14
Within 48 hours 7
Figure no.17
When the question was asked that how quickly their banking problems got solved
than it was that 13% people problem got solved immediately 47% within 24
hours. 23% in within 48 hours. 10%in within 3-5 days and 7% in more than a
week.
64
18. Are you able to use banking services online?
Table no.18
PARTICULARS RESPONDENTS
Yes 19
No 11
Figure no.18
From the above table 63% respondentof its customer are able to use internet
65
19.What is the major purpose for which you use the online banking?
Table no.19
PARTICULARS RESPONDENTS
BALANCE CHECK 3
Others 5
Figure no.19
15% 15%
ONLINE TICKET BOOKING
6% ONLINE BILL PAYMENT
9% BALANCE CHECK
Request for a cheque book
Others
55%
According to my survey 15% use online banking to book tickets, 6% use for
request for cheque book,55% use for to make bill payment,9% use for checking
balance only rest 15% use for other services like mobile recharge.
66
20. Are you satisfied with online banking?
Table no.20
PARTICULARS RESPONDENTS
Yes 19
No 6
Cannot say 5
Figure no.20
CANNNOT SAY 5
NO 6
Series1
YES 19
0 5 10 15 20
According to survey 63% people are satisfied with its services while 20% are not
67
21.What is your feedback regarding the bank’s Customer Service Representatives?
Table no.21
PARTICULARS RESPONDENTS
PRODUCT
SERVICES
GOOD COMMUNICATION 4
Figure no.21
When question was asked feedback of its customer services representative 17% people
think they are answer call quickly, 23% think they have good knowledge about banking
product, 23% people think its customer service representative are well aware about its
68
banking services, 20% people think they handle customers query very nicely and rest
PARTICULARS RESPONDENTS
Excellent 2
Very 15
Good
Good 7
Average 3
Poor 3
Figure no.22
10% 7% Excellent
10%
Very Good
Good
23% 50% Average
Poor
When the question was asked about the overall satisfaction of SBI than it was found that
69
Chapter-4
70
PROJECT FINDINGS:-
From this project it is found that most of the people are satisfied with the services of
the SBI bank.
It has been observed that maximum no of people are using the savings bank account
of SBI bank.
More number of people recommended that they often, alwaysand sometimes get
prompt service whenever they visit the branch
Majority of the respondents said that their banking problems and issues are addressed
by the bank staff within 24 and 48 hours a day.
Major numbers of respondents among 30 are ready to move from SBI to other banks,
if better services are provided with the optional bank.
Maximum people said that customer service and wide branch network are the two
things that come in their mind when they think of their bank.
Majority of the respondents are male when compared to female in dealing with SBI
bank
Maximum people are from 18 – 25 age group in dealing with SBI bank among 30
respondents
Maximum said that the most important reason for choosing SBI bank is for the brand
name of the bank, location, service and traditional system of maintaining account with
the same bank.
Majority of the people are dealing with SBI bank for more than 5 years or 2 – 3 years
71
Customers are very much satisfied with the core banking facilities, ATM, mobile
banking, loan services along with their financial transactions with the bank.
Major number of people typically visit the branch to make deposit and to enquiry
about the balance in their accounts.
Maximum among 30 gave a feedback that banking issues are handled quickly by the
customer service representatives of the bank.
Maximum respondents among 30 use online banking services for online bill payments
72
SUGGESTION OF THE STUDY:-
Though this study can’t provide conclusive evidence to determine particular courses of
action and further research will be required to provide evidence. But the management of
SBI (KOLKATA) should consider the findings and take all necessary steps for further
research and if they think that the customers of SBI are homogeneous in their
choice and preferences, they may consider the following recomm endations to
gain more customer based and achieve more customer satisfaction along with
The management of SBI should conduct more product and services awareness
campaign.
measurement tools.
paradigm. The relationships are mostly viewed from the perspective of the
73
firm providing services. For services firm in this case the banks, building
service quality.
Banks should continually assess and reassess how customers perceive bank
services s o a s t o k n o w w h e t h e r t h e b a n k m e e t s o r e x c e e d s o r i s b e l o w
74
CONCLUSION:-
The banking sector in India is undergoing major changes due to competition and the
advent of technology. The customer is looking for better quality serviceswhich enhance
his/her satisfaction. From the above analyses, it is evident that SBI has many
positive features and the customers are mostly satisfied with the services offered. In
spite of this fact, it has been observed that many customers are not aware of all sort
75
REFERENCE
Internet:-
www.google.co.in
www.sbi.com
www.slideshare.net
www.wikipedia.com
Books:-
Research Methodology
Marketing research
76
ANNEXURE:-
NAME:-……………………………………………………………
GENDER: -
MALE FEMALE
AGE: -
<18 18 – 25 25 – 40 40 – 60 60 ABOVE
OCCUPATION: -
INCOME: -
1. What was the single most important reason that you choose SBI bank.
ATM service
Location advantage
Any other
………………………………………………………………………………
……………..
2. Which type of services you are taking from the SBI bank?
other (………………………)
77
3. Since how many years you are dealing with SBI bank.
4. Does your bank have core banking facility for the customers.
6. What is the main reason that you typically visit your Branch?
(Please choose the single most important reason).
To make deposit
To withdraw cash
7. If you are provided with better service by optional bank. Would you like
to move to other bank?
Yes No
Why??
……………………………………………………………………………………………………………………
………………………………
8. Are you satisfied with your financial transactions with the bank?
Dissatisfied
78
9. Do you use the service of alternative bank?
Yes No
Why??
………………………………………………………………………………
…………………………………………
13.When do you think of your bank what comes first in your mind.
Personalized service Wide branch network Customer service
computerized banking Core banking
13. Do you always get prompt service whenever you visit the branch?
14. How quickly were your banking problems and issues addressed by the
bank staff?
Yes No
16. What is the major purpose for which you use the online banking?
79
18. What is your feedback regarding the bank’s Customer Service
Representatives?
Suggestion if any
………………………………………………………………………………
………………………………………
Thank you very much for your valuable time and cooperation.
80