A project report on

‘Customer Acquisition’

In partial fulfillment of the requirements for the

degree of

MASTERS IN BUSINESS ADMINISTRATION

University Business School
Panjab University

Submitted By:
Arun Kumar
MBA General

University Business School

Panjab University, Chandigarh
May 2018 – July 2018

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 ACKNOWLEDGEMENT

Everyone who makes a project owes a great deal to others, and I am

no exception. I would like to express my appreciation to all those
who have made my project a possibility. I am deeply in debted to the
Multi –Product Sales Team ,SBI, Mohali, who have provided me with
a supportive climate needed to complete my project.

I would like to acknowledge the help, motivation and

encouragement I received from Mr. Priyanshu Kumar, Marketing
executive, under whose guidance this project has been undertaken.
He helped me to streamline my project and bring into focus the main
aspects of my project. He gave me valuable feedback at all stages of
my project and guided me to make amends where required and
adhere to the standards of excellence.

I would also like to thank Mullti Product Sales Team for being there
whenever I needed help. There critiques have helped me to give the
final project a good shape. They have been immensely patient while
sparing their precious time in order to help me understand the
problems for which this project was undertaken.Hereby would like to
express my sincere gratitude and appreciation to all fortheir constant
guidance, construction suggestions and constant help throughout
the study.

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Table of Contents
COMPANY OVERVIEW:- .......................................................................................................................... 4
History of SBI:- ..................................................................................................................................... 5
BUSINESS OF SBI:- ............................................................................................................................... 7
Domestic presence:- ................................................................................................................................ 7
International presence:- .................................................................................................................... 8
State Bank of India (S.B.I.) Branch at Tsim Sha Tsui, Hong Kong ....................................................... 8
Non-banking subsidiaries ........................................................................................................................ 9
Awards and Recognitions...................................................................................................................... 10
Products and Services ........................................................................................................................... 12
SBI business loans ................................................................................................................................. 13
SBI Credit Card ...................................................................................................................................... 13
SBI Debit Card ....................................................................................................................................... 14
SBI Personel loan................................................................................................................................... 14
SBI Gold loan ......................................................................................................................................... 14
SBI Car Loan .......................................................................................................................................... 15
SBI Loan Against Property ..................................................................................................................... 16
SBI Fixed Deposit................................................................................................................................... 17
SBI Indian Saving Account ..................................................................................................................... 18
SBI Education Loan................................................................................................................................ 18
Net Banking at SBI ................................................................................................................................. 19
PEST Analysis of SBI............................................................................................................................... 21
BCG theory ............................................................................................................................................ 22
Porters five forces theory ..................................................................................................................... 23
SWOT ANALYSIS OF SBI ......................................................................................................................... 25
Weekly Reort........................................................................................................................................28

Data analysis and Interpretation..........................................................................................................31

DIGITILIZATION.....................................................................................................................................41
Internet Penetration In India ................................................................................................................ 42
CONCLUSION..................................................................................................................................... 46

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COMPANY OVERVIEW:-

State Bank of India (SBI) is a multinational banking and financial

services company based in India. It is a government-owned
corporation with its
headquarters in Mumbai, Maharashtra. On April 1, 2017, the State
Bank of India, which was India's largest bank, merged with 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 with the Bharatiya Mahila Bank. This was
the first ever large scale consolidation in the Indian banking industry.
With the merger, SBI became one of the 50 largest banks in the world
(balance sheet size of ₹33 trillion, 278,000 employees, 420 million
customers, and more than 24,000 branches and 59,000 ATMs). SBI's
market share was projected to increase to 22 percent from 17 per
cent. It has 198 offices in 37 countries; 301 correspondents in 72
countries

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 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 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.

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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 the Bank of Bombay
(incorporated on 15 April 1840) and the Bank of 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 over by the
Government of India. The Presidency banks amalgamated on 27
January 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.

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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 made eight state banks associates of SBI. A process of
consolidation began on 13 September 2008, when the State Bank of
Saurashtra merged with SBI. has acquired local banks in rescues. The
first was the Bank of Behar (est. ), 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, SBI acquired Krishnaram Baldeo
Bank, which had been established in 1916 in Gwalior State, under the
patronage of Maharaja Madho Rao Scindia. The bank had been the
Dukan Pichadi, 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 of
Travancore, already had an extensive network in Kerala.

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 standa typeface, but also utilises other typefaces.
On October 7, 2013, Arundhati Bhattacharya became the first woman
to beappointed Chairperson of the bank.

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BUSINESS OF SBI:-
The business of the banks was initially confined to discounting of
bills of exchange or 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 favour of 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.
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:-
Deposits of USD 400 billion, 278,000 employees, 420 million
customers, and more than 24,000 branches and 59,000 ATMs. It has
more than 33 billion as capital and reserves. After merger, SBI's
commands a market share of more than 23 percent shares of the
domestic banking market.

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International presence:-

In 1989, SBI established an offshore bank: State Bank of India

International (Mauritius) 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 a
24x7 robust Internet Banking Channel enabling customers to work
from their homes and offices.

State Bank of India Branch at Jaffna, Sri Lanka. 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 Lanka, celebrated its 150th year in Sri Lanka on 1 July
2014.

State Bank of India (S.B.I.) Branch at Tsim Sha Tsui, 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 Diego, Tustin and Bakersfield.
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 five branches in Nigeria.
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 rest.
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In Indonesia, it owns 76% of PT Bank Indo Monex.
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 for US$8 million in October 2005.
In January 2016, SBI opened its first branch in Seoul, South Korea
following the continuous and significant increase in trade due to
the Comprehensive Economic Partnership Agreement signed between
New Delhi and Seoul in 2009.

Listings and shareholding: As on 31 March 2017, Government of

India held around 61.23% equity shares in SBI. The Life Insurance
Corporation of India, itself state-owned, is the largest non-promoter
shareholder in the company with 8.82% shareholding.

Shareholders Shareholding
Promoters: Government of India 61.23%
FIIs/GDRs/OCBs/NRIs 11.17%
Banks & Insurance Companies 10.00%
Mutual Funds & UTI 8.29%
Others 9.31%
Total 100.0%

Non-banking subsidiaries
SBI also has the following non-banking subsidiaries:
SBI Capital Markets Ltd
SBI Funds Management Pvt Ltd
SBI Factors & Commercial Services Pvt Ltd
SBI Cards & Payments Services Pvt. Ltd. (SBICPSL)
SBI DFHI Ltd

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 SBI Life Insurance Company Limited
SBI General Insurance
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 founded
with its headquarters in Mumbai.

Other SBI service points

SBI has 27,000+ ATMs and SBI group (including associate banks)
has 32,752 ATMs. SBI has become the first bank to install an ATM at
Drass in the Jammu & Kashmir Kargil region. This was the Bank's
27,032nd ATM on 27 July 2012.
Logo and slogan
The logo of the State Bank of India is a blue circle with a small cut
in the bottom that depicts perfection and the small man the common
man - being the center of the bank's business. The logo came from
National Institute of Design(NID), Ahmedabad and it was inspired by
Kankaria Lake, Ahmedabad.
Slogans
: "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"

Awards and Recognitions

SBI was ranked as the top bank in India based on tier 1 capital by
The Banker magazine in a 2014 ranking.
SBI was ranked 298th in the Fortune Global 500 rankings of the
world's biggest corporations for the year 2012.
SBI won "Best Public Sector Bank" award in the D&B India's
study on 'India's Top Banks 2013'.
State Bank of India won three IDRBT Banking Technology
Excellence Awards 2013 for “Electronic Payment Systems”, “Best
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use of technology for Financial Inclusion”, and “Customer
Management & Business Intelligence” in the large bank category.
SBI won National Award for its performance in the implementation
of Prime Minister’s Employment Generation Programme (PMEGP)
scheme for the year 2012.
Best Online Banking Award, Best Customer Initiative Award &
Best Risk Management Award (Runner Up) by IBA Banking
Technology Awards 2010
SKOCH Award 2010 for Virtual corporation Category for its e-
payment
solution
SBI was the only bank featured in the "top 10 brands of India" list
in an annual survey conducted by Brand Finance and The Economic
Times in 2010.
The Bank of the year 2009, India (won the second year in a row) by
The Banker Magazine
Best Bank – Large and Most Socially Responsible Bank by the
Business Bank Awards 2009
Best Bank 2009 by Business India
The Most Trusted Brand 2009 by The Economic Times.
11
SBI was named the 29th most reputed company in the world
according to Forbes 2009 rankings
Most Preferred Bank & Most preferred Home loan provider by
CNBC
Visionaries of Financial Inclusion By FINO
Technology Bank of the Year by IBA Banking Technology Awards
SBI was 11th most trusted brand in India as per the Brand Trust
Report 2010.

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Products and Services

SBI presents a wide range of products and services for its customers.
It includes savings account, credit cards, fixed deposits, home loan,
personal loan, debit card, loan against property, car loan, gold loan
and more. Let us learn about these in some detail.

SBI is the largest mortgage lender in the country and has helped more
than 30 Lakh families in getting the key to their dream home. You can
also make your dream home real by taking a home loan at low rate of
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interest from State Bank of India. Loans can be availed for projects
approved by RERA and SBI. Following are the reasons that make SBI
home loan a worthy deal- Choose from a range of SBI and RERA
approved projects Instant e-approval in three simple steps
Calculate home loan EMIs using EMI calculator Transfer outstanding
balance from other banks and save on overall interest outgo
Facility also available for NRIs Avail Flexipay Home Loan and pay
only interest during the pre-EMI period

SBI business loans

There are two types of loans that SBI offers to help small businesses
expand to newer horizons. These include asset backed loans and
collateral free loans.
Asset Backed Loans- These loans are secured against property and the
proceeds can be used for business purposes such as purchasing of
fixed deposits, working capital requirement, capacity expansion and
more. Up to Rs. 20 crores can be borrowed under this for repayment
tenure of up to 180 months. Loan can be availed up to 60% of the
value of property.
Collateral Free Loans- SBI offers loans to businesses without the need
to put up any asset as collateral. Just like asset backed loans, these can
be utilized for business purposes like those mentioned above. The
amount of loan depends on the credit profile of the borrower.
Apart from these, SBI also offers SBI e-Smart for e-Commerce, SME
credit card and SBI Fleet Finance Scheme.

SBI Credit Card

SBI Card is a joint venture between State Bank of India and GE
Capital. It is the second largest credit card provider in the country and
offers a wide range of cards that suit the needs of different types of
customers. There are cards that focus on shopping, travel, dining,
movies and much more. Users can also earn rewards and cashbacks
on SBI Card every time they make a transaction. Given below are
some of the features of SBI credit cards-
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Transfer balances from other bank credit cards to SBI card
Convert your bigger expenses into easy EMIs using Flexipay
Enjoy hassle-free money with convenient repayment options
Pay utility bills easily by setting standing instructions
Choose from three different types of insurance covers

SBI Debit Card

With savings bank account, SBI customers get a complimentary debit
card. The type of card depends on the type of savings account that
they have. All debit cards are internationally accepted and offer
different types of rewards and benefits. SBI Classic Debit Card, SBI
Silver International Debit Card, SBI Gold International Debit Card,
SBI Platinum International Debit Card and SBI Global International
Debit Card are some of the popular debit card options by SBI. It also
offers Mumbai Metro Combo Card which helps in easy recharge and
convenient commuting in Mumbai Metro Trains.

SBI Personel loan

When you require urgent cash, State Bank of India can help you with
its personal loan offerings. This loan can be utilized to pay for huge
medical bills, wedding expenses, international vacation or for debt
consolidation. No security is required for taking personal loans and
the application process is also simple. The minimum loan amount has
been set as Rs. 25,000 and the maximum amount has been capped at
Rs. 15 Lakhs. The processing fee on SBI personal loans is equal to 1
percent of the loan amount and prepayment of loan is also possible at
the rate of 3 percent on the amount prepaid. This loan is available for
salaried individuals as well as self-employed.

SBI Gold loan

Customers can avail gold loan from State Bank of India at highly-
affordable rates of interest. The amount of loan depends on the market
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value of the gold ornaments pledged to the bank subject to a
maximum limit of Rs. 20 Lakhs. Maximum repayment period in case
of SBI gold loan is 36 months. Here are some of the reasons that
make SBI gold loan a good bet-
Any individual with steady source of income can avail the loan.
The minimum age for availing the loan is 21 years.
The minimum amount of loan is Rs. 20,000.
The repayment of Principal and Interest will begin from the next
month of disbursement.
Margin in case of gold loan is 25 percent.
Pledged gold ornaments are kept safe in secure bank vaults.

SBI Car Loan

State Bank of India offers you the best deal in the market when it
comes to financing your new car. It can be taken for the purpose of
buying a new passenger car, a multi-utility vehicle (MUV) or a Sports
Utility Vehicle (SUV). To make it even simpler for people to
purchase their dream car, SBI has kept the interest rates lower and
application process hassle-free. The longest repayment tenure has
been set at 7 years and the loan amount will depend on the on-road
price of the vehicle. Moreover, there is no penalty for prepayment or
foreclosure of the loan before maturity. The minimum age to avail
SBI car loan is 21 years and the maximum age is 65 years.

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SBI Loan Against Property
Another way to meet your financial requirements is by taking a loan
against your property. Borrowers do not have to provide any
documentary evidence for end use of the funds borrowed. Both
residential and commercial properties can be pledged to the bank for
availing this loan. Minimum loan amount is Rs. 10 Lakhs and
maximum amount is capped at Rs. 7.5 Crores. Following are the some
benefits of SBI loan against property-
Attractive rates of interest
Lowest processing charges
Transparent application and operations
Interest rate levied on daily reducing balance method
No prepayment penalty
Rental income may also be considered for taking the loan

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SBI Fixed Deposit
Invest in Bank of India fixed deposits and earn interests. The FD can
be taken for any tenure ranging from 7 days to 10 years and the
interest rate offered by SBI is also quite attractive. Senior citizens are
eligible for 0.50 percent higher interest than regular investors.
Customers can also avail the facility of loans against their fixed
deposits. The table given below shows SBI FD interest rates for
different tenures-

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SBI Indian Saving Account
State Bank of India offers different types of savings accounts
according to customers’ needs. Opening a savings account gives you
convenience of banking from anywhere around the world through
internet banking or mobile banking. The types of savings accounts
offered by SBI-
General Savings Account
Special Salary Account
Children’s Savings Account
3 In 1 Demat And Online Trading Account
Several facilities are offered with SBI savings accounts such as auto-
sweep facility, mobile banking, internet banking, rewards program,
personal insurance and health insurance. Any queries or complaints
regarding your savings accounts can be resolved by calling 24×7
contact centres.

SBI Education Loan

SBI also offers education loans to help students fulfil their dreams of
studying in a top institute. This loan covers the tuition fees, exam fee,
lab fee, purchase of books/uniform/equipment, travel expenses to
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study abroad, cost of a two-wheeler up to Rs. 50,000 and more. For
studies in India, the maximum amount of loan is Rs. 10 Lakhs and the
same for education in a foreign country is Rs. 20 Lakhs. No tangible
security is required unless the loan is above Rs. 7.5 Lakhs and the
margin is nil for loans below Rs. 4 Lakhs. There is a moratorium
period of one year in which the borrower does not have to pay any
amount to the bank; loan repayment will begin once the moratorium
period is over.

Net Banking at SBI

Net banking is SBI Bank's Internet Banking service. It provides up-to-
the-second account information. Net banking lets the customer
manage his/her account from the comfort of his/her mouse - anytime,
anywhere. Net Banking services provides access to account
information, products and other services (including transactions of
non-financial and financial in nature) as advised by the Bank from
time to time to the customers through the website of the Bank. Net
Banking Services also include the services for Demat account, Credit
Cards and loan on the website of the Bank.
The SBI Bank has ther app YONO(You Only Need One) also features
two versions of a demo facility - one "interactive" and the other
"guided" - making it possible for even Internet illiterates to
get comfortable with its services.
All the customer need to do is Log in using his/her Customer ID and
IPIN (Net Banking password).The Customer ID is mentioned on your
account statement/ account welcome letter/ chequebook.
Some of the transactions you can do through Net Banking are:
I. Check your account balances and download 5 year account
statement in 5 formats, instantly
II. Book Fixed Deposit / Recurring Deposit
III. Pay Utility Bills
IV. View your Credit Card details and pay your Credit Card Bills
V. Recharge your Prepaid Mobile & DTH Connections
VI. Invest in Mutual Funds Online
VII. Book IRCTC Tickets online
VIII. Purchase a Gift Card
IX. Pay your Taxes online
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X. Update your PAN Details online
XI. View your Tax Credit Statement (Form 26 AS)
XII. Request for a Demand Draft/ Chequebook
XIII. Request Stop Payment of a Cheque/ Hotlist you Debit Card/
Credit Card
XIV. View your Loan details
XV. Apply for IPO
XVI. Request for Debit Card PIN Regeneration
XVII. Register for Third Party Transfer
XVIII. Transfer funds between accounts within SBI Bank and other
Bank Accounts
These are just some of the 200+ transactions you can do through Net
Banking.

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PEST Analysis of SBI

Political
Political environment of any country always have effect on all the
sectors of that country and banking is no exception. With good &
stable political environment,banking sector is able to transfer funds
more efficiently . One must note that the political instability of the
country affect directly the banking sector in India Weakness in Indian
political system affects the economic flexibility. Bureaucracy, poor
administration, coalition, and power hurts the resilience of India’s
framework of policy-making.unstable politics leads to delayed
decision making and implementations.Monetary policy of RBI has
been restrictive over last couple of years with more intervention by
RBI into money market. RBI has made many changes into repo and
reverse repo rate to curb inflation and ease the pressure Monetary
policy Regulatory frame work Degulation of market
Economic
India's economic flexibility is damaged by its weak economic
structure, with very low per capita GDP. However, this risk is p
artially covered with the growth percent that India has & with its
characteristic of being a well-diversified economy.Indian economy is
getting into expansion mode combined with private sector growth.
The Indian private sector has not yet fully taken the benefi t of
absolute credit growth ofvthis country. The increase in private sector
credit has been very nominal over last few years. There is high credit
risk in Indian banking sector owing to the not well developed legal
framework that leads to delayed payments and lower recovery. As per
S&P reviews on Indian Banking, Indian banking regulations are at par
with world standards. RBI has taken noteworthy steps to ensure
feasible risk-return ratio of banks Regular change in rate of interest
Complex nature of operations Consolidation of industry

Social
India has been on growth track and banking being an maor part of
our economy it has to adjust itself so as to supplement the growth of
indian economy. Despite all this growth, Indian rural part have largely
deprived with the basic banking facility.where Farmers and small
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businessman have no other choice than to take loans from local
vendors. Also The techcno type consumer provides opportunity as
well as poses challenges in the banking system. The consumers are
looking for electronic modes of fund transfer along with the personal
touch and experience Employment Demographics Working
condition

Technological environment:

With the new changes in technology, banking has seen major

changes in operations and has now focused on customer centric
approach, mobile banking, ATMs, internet banking,core banking,
ERP, etc. and improved efficiency and productivity. Banks are now
focusing on cashless, paperless and hassle-free working. As per
KPMG, non-cash payment comprised of 91% in value terms
compared to 88% in 2013. Also, the payments made through cheques
have also come down Establishment of computers, internet
connectivity, RTGS and NEFT, MICR Cheques, ECS ,OTP are all
significant milestones in present. The continuous advancement in
technology changed the way the bank interacts with consumer. Now,
we have the virtual banking concept to roll out in market wherein the
products or services are available only on electronic modes and these
are competitively and attractively priced so as to invite customer to
non-branch banking world, thereby reducing costs. With digitalization
of transactions, wireless transfer of funds, paper less culture, etc. the
banks have opportunity of improving the overall productivity, reduce
cost and provide better customer service

BCG theory:
Cash Cow There is a lot of growth potential for the banking industry
because of increasing disposable income of customers, increasing
working class, more volatility in other markets also increasing
importance of savings and in this banking industry SBI has shown a
growth rate of 13% with a 21 % increase in PAT standing to 62.1 cr .
Hence it can be concluded that SBI stands at cash cow in BCG
matrix.

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Porters five forces theory
1. Threat of competitors(High)
The banking industry is highly competitive. The financial services
industry has beenaround for hundreds of years and just about
everyone who needs banking servicesalready has them. Because of
this, banks must attempt to lure clients away fromcompetitor banks.
They do this by offering lower financing, preferred rates
andinvestment services. The banking sector is in a race to see who can
offer both the bestand fastest services
Top Performing Public Sector Banks
a. Andhra Bank
b. Allahabad Bank
c. Punjab National Bank
d. Dena Bank
e. Vijaya Bank
Top Performing Foreign Banks
a. Citibank
b. Standard Chartered
c. HSBC Bank
d. ABN AMRO Bank
e. American Express

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 2. Threat of new entrants: (Low) Starting a bank in a country like
India is not as easy as any other industry, but if anew bank is started
that is mainly targeted on Niche Segments might pose a threatto SBI.
The new entrants from a different country are always discouraged to
takepart in the financial and banking sector by regulatory reforms
limiting foreignpresence. Threat from other non banking financial
services could also pose a threatespecially equity investment,
insurance etc. Entrant of a larger player can cause adrastic effect on
the not so strong name in banking or the bank with low income
butwould not cause any significant affect on SBI.
3. Threat of substitutes(Low): There are plenty of substitutes in the
banking industry.Banks offer a suite of services over and above taking
deposits and lending money,but whether it is insurance, mutual funds
or fixed income securities, chances arethere is a non-banking financial
services company that can offer similar services. On the lending side
of the business, banks are seeing competition rise from
unconventional companies. Sony, General Motors and Microsoft all
offer preferredfinancing to customers who buy big ticket items. But
these substitutes do not affect SBI due to its huge brand name and
presence in the market.
4. Buying power of suppliers(Low) The suppliers of capital do not
pose a big threat, but the threat of suppliers takingaway the human
resource. If a talented individual is working in a smaller regionalbank,
there is the chance that person will be enticed away by bigger
banks,investment firms, changing policies and guidelines of RBI,
interest rates, CRR and SLR maintained by the banks as per RBI
norms.
5. Buying power of customers(High) With the emergence of larger
number of players in the Banking Industry, the switchingcost of the
buyer has gone done significantly. The onus is now on the
effectiveness andspeed with which the services are provided to the
customers. Financial institutions - byoffering better exchange rates,
more services, and exposure to foreign capital markets -work
extremely hard to get high-margin corporate clients. Options in the
Auto FinanceSector also give the customers more power to decide
upon the kind of financing.Introduction of specialized products for
Women and Students etc also show that thebuyer power is high in this
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Industry changing scenarios, increasing and decreasing disposable
incomes, other attractive options available to customers

Competitors and other players in the field:-

Top Performing Public Sector Banks

Andhra Bank
Allahabad Bank
Punjab National Bank
Dena Bank
Vijaya Bank

Top Performing Private Sector Banks

HDFC Bank
ICICI Bank
AXIS Bank
Kotak Mahindra Bank
Centurion Bank of Punjab
Andhra Bank
Allahabad Bank
Bank of Baroda

Top Performing Foreign Banks

Citibank
Standard Chartered
HSBC Bank
ABN AMRO Bank
American Express

SWOT ANALYSIS OF SBI:

Strength:
1. SBI is the biggest bank in India with more than 14000 branches
2. State Bank Of India (SBI) has a separate act for itself. Thus, a
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special privilege for the bank
3. Biggest branch network in the country means good reach
4. First public sector to move to CBS
5. SBI has close to 300,000 people employed with it
6. Backing of the Govt of India gives a huge boost to the bank
7. State Bank Of India offers services like consumer banking,
enterprise banking, insurance etc
8. It has a good brand visibility and awareness due to extensive
marketing
9. SBI has its presence in more than 35 countries with close to 200
office.

Weakness:
1. Immense competition means limited market share growth for SBI
2. International presence is less as compared to global banks.
3. Employees show reluctance to solve issues quickly due to higher
job security
4. 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.

Opportunities:
1. Pool in talent to replace the going top management to serve the
next generation
2. State Bank Of India (SBI) can make better use of CRM,
technology and online space
3. Expansion into rural areas too boost its business
4. With focus on India going cashless, the bank can dominate the
market with its extensive reach.
5. SBI’s merger with five more banks namely State Bank of
Hyderebad, State bank of Patiala, State bank of Bikaber and Jaipur,
State of bank of Travancore and State bank of Mysore . 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 money from Asian Market.

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6. Since the bank is yet to modernize few of its banking operations,
there is a better scope of using advanced technologies and software to
improve customer relations.

Threats
1. Consolidation among private banks can reduce market share for
SBI
2. New bank licenses by RBI can affect operations
3. Foreign banks that have sophisticated products
4. SBI operations are often disrupted by slow government decisions
and red tapism.
5. 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
6. Other government banks like PNB, Andhra, Allahabad bank and
Indian bank are showing Customer preference 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.
7. New rising financial banking services .

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Weekly Report

Week 1
During the first week of my internship I underwent the process of
working of the bank and basics of various functions of the bank. I
started using SBI net portal online and started understanding all the
functions it has to offer from opening FD, RD to applying for credit
cards. I also started to study the functioning of payment applications
like YONO and SBI buddy.
I started sitting with different employees of the bank to understand the
basic functioning of the bank and how processes are handled in the
bank. I also observed the way to interact with the customer and the
tone to use while telling customers about the products and service
offered by the bank and how to try to create a need for the customer.
I observed the efficiency of the branch manager while dealing with
customers as well as employees and learnt that motivation plays a
great role in improving performance of the employees especially in
banking sector. I also observed the pattern of customer walk-in in the
branch and saw the peak timings in which there was high customer
walk-in percentage. I also attended their weekly meeting.

Week 2
In this week i was associated with the MPST(Multi Product Sales
Team) marketing Head of Car Loan segment of RBO Mohali .He
gave me description about cibil score which they used to check while
sanctioning loan to customers We visited dealers of Mohali and
Chandigarh to generate leads.

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Week 3
In this week i started doing survey of customers visiting branch. This
survey was not only limited to customer acquistion but was towards
customer satisfaction also .The questionnaire in the form google form
was designed and i was collecting responses . I usually met
customers already dealing with the bank but they had some problems
regarding some services and i noted them down and discussed the
problems with the concerned authority.
The rest of the time was devoted to creating awareness about Digital
banking to customers and resolving problems of customers by
interacting with them and seeking help of employees.

Week 4
This week was a light week, the first part of it focused on siting in the
branch and analysing the cibil score and documents of the custmers
who have applied for car loan , to find out eligible customers.
Everday we were easily getting 4 to 5 new customers seeking for
loans.
The rest of the week was observation and helping employees filling
application foms , arranging documents, seeing the way they interact
with a customer.

Week 5
This week we started visiting Chandigarh dealers beacause in past 4
weeks chandigarh got 252 leads and mohali got only 133 leads. We
covered around all the dealerships and interacted with their sales
teams that why they were not giving cases to mohali . Our main
attempt here was to sell RBO Mohali car loans here. We would start
at around 11 am and come back around 1 pm, the rest of the time was

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spent compiling data. All the data was collected primarily by directly
meeting people.
Meanwhile those who were already dealing with SBI bank were asked
about Digital banking and if they had any problems related to any
other service offered by the bank.

Week 6
In this week all the data collected of Customers was compiled and
converted into meaningful targets that could be contacted for further
success. Compiling the whole data helped us segment the customers
according to the products that could be sold. For example if a
customer already had an A/C with SBI then he could be targeted for
cross selling other products .After compiling the data i was assigned
an employee who would help us in the calling process. The
employee would call the person and we would observe and learn how
to create a need for the customer.

Week 7 and 8
These were the final weeks of the internship. The 7th week was
dedicated to calling customers who had got an offer of credit card free
for lifetime. Not only calling was done but we also had a chance to go
to the customer without any employee for our help all by ourselves
and convert the call.
A majority of the last week was dedicated to preparing my report and
calling certain credit card customers.

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Data Analysis and Interpretation

1. Do you think SBI caters all your banking needs? *

Customers

40

Yes
60

No

So from above data it shows that 60% of the customers think that SBI
caters all there banking needs whereas 40% think that the SBI lacks in
providing the services required by them .

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2.What is the reason for choosing SBI? *

Customers

20

40 Family tradition
Incentive schemes
Nearness to office/home
22 Just by chance

18

So we can analyze that 40% of the customers have choosen SBI just

by there family traditions and 18% have choosen SBI by promotional

advertisements or incentve schemes .22% have choosen SBI because

of ease in accessibility or distribution of branches

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3.Are you aware about the products and services of SBI? *

Customers

41

Yes
59
No

So the above data shows that only 59% of the customer are aware

about the products and services of sbi of we need to enchance our

customer knowledge about the new products and services so we can

cross sell the products and services .

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4. Do you think sbi offers competitive service charges ?

Customers

45.5

54.5 Yes
No

So we can analyze that 54.5%customers are stausfied with

competitive service charges .

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5. How satisfied are you with service quality of SBI ?

Customers

15

20
Extremely satisfied
Satisfied
65
Neutral

So from above data we can analyze that almost all the customers are

satisfied by the products and services of the sbi and around 15% are

neutral about there responses.

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6. Do you think the service quality of SBI is at par with its

Competitor banks ?

Customers

45

55 Yes
No

55% of the customers have given their opinion that sbi services are

with par with competitors banks and while 45% have given

preference to competitors banks because of pleasing services given by

rising private banks and financial companies .

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7. How satisfied are you with the mobile banking services of

SBI?

Customers
0

22

48
Extremely satisfied
Satisfied
Neutral
30
Dissatisfied

The new initiative taken by sbi of mobile banking services have made

transactions for customers convient and easily accesible of banking

need at any time any where. So this decade is the era is of

digitilization.

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8. Which attribute of the bank do you value the most ?

Customers

13.6
22.7

Quality of service
9.1
Technology used
Trust
54.5 Location

We can see that 54% customers are associated with sbi with trust

fator which is the most essential attribute required for retaining the

customers and generating new leads. Marketing is all about

mainiating goods relations .

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9. How satisfied are you with the attitude of SBI staff towards
customers ?

Customers
0
2

20

Extremely satisfied
46 Satisfied
Neutral
Dissatisfied
Extremely dissatisfied

32

We can analyse that 46% customers are satisfied with the attitude of
Sbi staff towards customers. 32% are neutral about there response
and 22% are dissatisfied with services rendered by SbI staff.

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10. Which Bank do you prefer for taking loan?

Customers

20

40 SBI
HDFC

15 AXIS
OTHERS

25

We can interpret that only 40% customers prefer to take loans from
SbI and others prefer other banks for taking loans.

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DIGITALIZATION

Introduction
In today‟s world, customers, employees and organization are much
more connected and this is clearly changing the way they do business,
communicate with stakeholders and collaborate with partners.
Customers and employees access multiple devices and juggle frequent
instant messaging, browse the internet for news updates, and utilize
social media, for positioning and branding; while organisations are
increasingly dealing with global and virtual teams across multiple
platforms and online or cloud-based processes. This is propelling a
dramatic shift in the way that business is conducted and the way that
employees work. Customers are increasingly seeking anywhere /any
time options and employees want greater flexibility to perform their
work in their own time – in locations which best suit their lifestyle.
One of the key technological enablers for this – for both companies
and their employees – is the use of device agnostic, online or web-
based tools. For insurers, we believe the opportunity lies in leveraging
the use of digital technology and web-based collaboration tools to:

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Internet Penetration In India
Since the late 1990s, the internet has not only provided users with
online experiences such as email, online search and general browsing
but has also played a major role in enabling human interaction and
reshaping traditional communications media such as film, television,
music and telephone. The emergences of new digital technologies and
websites have accelerated forms of
human interaction through online forums, instant messaging, and
social networking (since the mid-2000).
With over 460 million internet users, India is the second largest online
market, ranked only behind China. By 2021, there will be about 635.8
million internet users in India. Despite the large base of internet users
in India, only 26 per cent of the Indian population accessed the

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internet in 2015. This is a significant increase in comparison to the
previous years, considering the internet penetration rate in India stood
at about 10 per cent in 2011. Furthermore, men dominated internet
usage in India with 71 per cent to women‟s 29 per cent

Of these active internet users in India, 442.7 m are the active mobile
internet users. This clearly shows that the penetration of the mobile
internet is very high. About 323 million people in India accessed the
internet through their mobile phones in 2016, which corresponds to
about 24.3 per cent of the country’s population. Both figures are
forecast to increase in the coming years, with projections to amount to
524.5 million and around 37.4 per cent respectively in 2021. Mobile
internet usage in India varies according to people's living areas. As of
2016, India had an estimate of 262 million mobile internet users
living in urban communities, and 109 million living in rural areas.

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With an estimate of 43.8 per cent digital buyer penetration in 2016,
online shopping is also a popular online activity of Indian internet
users. Retail ecommerce sales in India amounted to about 16 billion
U.S. dollars that year and are projected to surpass 45 billion U.S.
dollars in 2021. Mobile shopping has gained space in the country as
well. About 49 per cent of Indian consumers stated using their
mobiles for purchasing goods or services. This share is above
global average – which stood at 38 per cent as of 2016 – and the
second highest figure in the world, only behind China

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The projected figure clearly shows that for every industry in India, it
is better to step onto the digital way. State Bank Of India is also one
of the oldest banks to increase the penetration of the customers in
India, it should also go the digital way.

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CONCLUSION

From the analysis part it can be conclude that customers have a good
respond towards SBI advance products in Mohalii. SBI is in 1st
position having large number of customers & providing good services
to them. The bank has a wide customer base, so the bank
should concentrate on this to retain these customers and focus on
cross – selling.
In present scenario SBI is the largest advance product issuer in India.
Within a very short period of time the achievement made by SBI is
excellent, what a normal bank cannot expect, but it is being done by
SBI. It happens due to employee dedication towards the organization,
fastest growing Indian economy, & brand image.

To be the largest advance product issuer, SBI should focus on-

 Launch Innovative product
 Customized advance products
 Better customer services
 Fastest customers problem solving techniques
 Customer retention

Apart from all the above, SBI believe in providing good customer
services to their customers which is a key factor for success in future.

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 REFERENCES

 https://www.statista.com/topics/2157/internet-usage-in-india/
 http://www.sbi.co.in/sbi/content/8_0
 Boufounou, P. V. (1995). Evaluating bank branch location and performance: A case
study. European Journal of Operational Research, 87(2), 389-402.
 Kaur, J. A CASE STUDY ON MEGA MERGER OF SBI WITH ITS ASSOCIATE
BANKS AND. Retrieved from http://www.tips.edu.in/download_pdf/186.pdf
 Marous, J. (n.d.). Banks Transforming Branch Networks to Improve Efficiencies _
Bank Innovation _ Bank Innovation. Retrieved June 19, 2018, from
https://bankinnovation.net/2012/09/banks-transforming-branch-networks-to-improve-
efficiencies/

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