DEFINITION OF BANK

Bank is, “An establishment for custody of money received from or

on behalf of, its customers. Its essential duty is the payment of the
orders given on it by the customers, its profit mainly from the
investment of money left unused by them”.
Banking Regulation Act, 1949 (Sec. 5 (c)), has defined the banking
company as, “Banking Company means any company which
transacts business of banking in India”.
According to Section 5B, “banking means the accepting of deposit
of money from the public for the purpose of leading or investment,
which are repayable on demand or otherwise and are withdraw
able by cheque, draft, and order or otherwise.”

INTRODUCTION
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The origin of the STATE BANK OF INDIA goes back to the
first decade of the nineteenth century with the
establishment of the Bank of Calcutta in Calcutta on 2nd
June 1806. Three years later the bank received its charter
and it was re-designed as the Bank of Bengal (2 ndJanuary
1809). A unique institution, it was the first joint-stock bank
of British India sponsored by the Government of Bengal.
The Bank of Bombay (15th April 1840) and the Bank of
Madras (1st July 1843) followed the Bank of Bengal. These
three banks remained at the apex of modern banking in
India till their amalgamation as the Imperial Bank of India
on 27th January 1921.
State Bank of India (SBI) is the largest banking
and financial services company in India. It is a state-
owned corporation with its headquarters in Mumbai,
Maharashtra. 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. The
Government nationalized the Imperial Bank of India in
1955, with the Reserve Bank of India taking a 60% stake,
and renamed it the State Bank of India. In 2008, the
government took over the stake held by the Reserve Bank
of India. SBI is ranked #292 globally in Fortune Global
500 list in 2013.

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SBI provides a range of banking products through its vast
network of branches in India and overseas, including
products aimed at non-resident Indians (NRIs). The State
Bank Group, with over 16,000 branches, has the largest
banking branch network in India. SBI has 14 local head
offices situated at Chandigarh, Delhi, Lucknow, Patna,
Kolkata, Guwahati (North East Circle), Bhubaneswar,
Hyderabad, Chennai, Trivandrum, Bangalore, Mumbai,
Bhopal & Ahmadabad and 57 Zonal Offices that are located
at important cities throughout the country. It also has
around 130 branches overseas.

JOURNEY AND VISION OF SBI

The State Bank of India, the country’s oldest Bank and a
premier in terms of balance sheet size, number of
branches, market capitalization and profits. The bank is
entering into many new businesses with strategic tie ups –
a) Pension Funds,
b) General Insurance,
c) Custodial Services,
d) Private Equity,
e) Mobile Banking,
f) Point of Sale Merchant Acquisition,
g) Advisory Services,
h) Structured products etc.
The Bank is forging ahead with cutting edge technology
and innovative new banking models, to expand its Rural
Banking base, looking at the vast untapped potential in the
hinterland and proposes to cover 100,000 villages in the
next years. It is also focusing at the top end of the market,
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on whole sale banking capabilities to provide India’s
growing large Corporate with a complete array of products
and services. Today, the Bank is the largest provider of
infrastructure debt and the largest arranger of external
commercial borrowings in the country. The Bank is
changing outdated front and back end processes to
modern customer friendly processes to help improve the
total customer experience. With about 8500 of its own
10000 branches and another 5100 branches of its
Associate Banks already networked, today it offers the
largest banking network to the Indian customer.
The Bank is also in the process of providing complete
payment solution to its clientele with its over 8500 ATMs,
and other electronic channels such as Internet banking,
debit cards, mobile banking, etc. With four national level
Apex Training Colleges and 54 learning Centre’s spread all
over the country the Bank is continuously engaged in skill
enhancement of its employees. The bank is also looking at
opportunities to grow in size in India as well as
internationally. It presently has 82 foreign offices in 32
countries across the globe.

It has also 7 Subsidiaries in India –

a) SBI Capital Markets,
b) SBICAP Securities,
c) SBI DFHI,
d) SBI Factors,
e) SBI Life and
f) SBI Cards
It is in the process of raising capital for its growth and also
consolidating its various holdings. In a recently concluded
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mass internal communication program termed ‘Parivartan’
the Bank rolled out over 3300 two day workshops across
the country and covered over 130,000 employees in a
period of 100 days using about 400 Trainers, to drive home
the message of Change and inclusiveness. The CNN IBN,
Network 18 recognized this momentous transformation
journey, the State Bank of India is undertaking, and has
awarded the prestigious Indian of the Year – Business, to
its Chairman, Mr. O. P. Bhatt in January 2008.

POSITION OF THE COMPANY

SBI is a regional banking behemoth and is one of the
largest financial institutions in the world. It has a market
share among Indian commercial banks of about 20% in
deposits and loans. The State Bank of India is the 29th
most reputed company in the world according to Forbes.
Also, SBI is the only bank featured in the coveted "top 10
brands of India" list in an annual survey conducted by
Brand Finance and the Economic Times in 2012.The State
Bank of India is the largest of the Big Four banks of India,
along with ICICI Bank, Punjab National Bank and HDFC
Bank—its main competitors.

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 SYMBOL AND SLOGAN
 The symbol of the State Bank of India is a circle and a
small man at the center of the circle (and not a key
hole). A circle depicts perfection and the common man
being the center of the bank's business.
 Slogans : "Pure banking nothing else"

Also includes: "With you - all the way" and: "a bank of common man"

MISSION, VISION & VALUES

VISION
 My SBI.
 My Customer first.
 My SBI: First in customer satisfaction
MISSION
 We will be prompt, polite and proactive with our
customers.
 We will speak the language of young India.
 We will create products and services that help our
customers achieve their goals.
 We will go beyond the call of duty to make our
customers feel valued.
 We will be of service even in the remotest part of our
country.
 We will offer excellence in services to those abroad as
much as we do to those in India.
VALUES
 We will always be honest, transparent and ethical.
 We will respect our customers and fellow associates.
 We will be knowledge driven.
 We will learn and we will share our learning.
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 We will never take the easy way out.
 We will do everything we can to contribute to the
community we work in.
 We will nurture pride in India.

BOARD OF DIRECTORS

STATE BANK OF INDIA

(As on 28th December, 2013)

Sr. Name Designation Under

No. Section of
SBI Act
1955
1 Smt. ArundhatiChairman 19(a)
Bhattacharya
2 Shri Hemant G.Managing 19 (b)
Contractor Director
3 Shri A. KrishnaManaging 19 (b)
Kumar Director
4 Shri Managing 19 (b)
S.Vishvanathan Director
5 Shri P. PradeepManaging 19(b)
Kumar Director

Smt. Arundhati Bhattacharya (Chairman)

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The State Bank of India (SBI) on 7th October 2013
announced that the central Government of India has
appointed Ms. Arundhati Bhattacharya as the chairperson
of the India's largest bank. Succeeding Pratip Chaudhuri
who retired on September 30, she is the first ever lady
chairman to head SBI. The 57-year-old Bhattacharya, the
front-runner for the post on account of years of service
left, was managing director and chief financial officer of
the bank prior to her elevation.

PROFIT STATUS

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As we can see that profit of state bank of India is
increasing every year. Above the profit figures are
in cores. This data is for last previous 5 years.

SERVICES & PRODUCTS

 BANKING SERVICES  NRI SERVICES

 INTERNATIONAL BANKING  CORPORATE BANKING
 AGRICULTURAL BANKING  INTERNATIONAL BANKING
 ELECTRONIC VENDOR  ELECTRONIC DEALER
FINANCE FINANCE
 DIRECT DEBIT  E COLLECTION

SBI Retail Banking

 Term Deposits  Educational Loan

 Recurring Deposits  Personal Loan
 Housing Loan  For Pensioners
 Against Mortgage of Property  Medi-Plus Scheme
 Against Shares & Debentures  Rates of Interest

Services

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  Access to multiple users
 Account view / Statement
 Funds Transfer
 Third party funds transfer
(RTGS/NEFT)
 Demand Draft request
 MIS reports
 Host to Host integration
 Utility Bill Payment
 Bulk transaction through file
upload
 Direct and indirect tax
payment
 SMS/Email alerts
 User hierarchy with
discretionary access/rights to
accounts

ASSOCIATE BANKS OF SBI

SBI has five associate banks; all use the same logo of a blue circle
and all the associates use the "State Bank of" name, followed by the
regional headquarters' name:
 State Bank of Bikaner & Jaipur
 State Bank of Hyderabad
 State Bank of Mysore
 State Bank of Patiala
 State Bank of Travancore
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.
 SBI Life Insurance Company Ltd.
 SBI General Insurance
Competitors and other players in the field:-

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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
Top Performing Foreign Banks
CITIBANK STANDARD CHARTERED
HSBC BANK ABN AMRO BANK
AMERICAN EXPRESS

SHAREHOLDING & LIQUIDITY

Reserve Bank of India is the largest shareholder in the bank with

59.7% stake followed by overseas investors including GDRs with

19.78% stake as on September 13. Indian financial institutions

held 12.3% while Indian public held just 8.2% of the stock. RBI is

the monetary authority and having majority shareholding reflects

conflict of interest. Now the government is rectifying the above

error by transferring RBI’s holding to itself. Post this, SBI will

have a further headroom to dilute the GOI’s stake from 59.7% to

51.0%, which will further improve its CAR and Tier I ratio.

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 KEY AREAS OF OPERATIONS
The business operations of SBI can be broadly classified
into the key income generating areas such as National
Banking, International Banking, Corporate Banking, &
Treasury operations.

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 CORPORATE
BANKING

ASSOCIATES
INTER-
&
NATIONAL
SUBSIDIARI
BANKING
ES

STATE BANK
OF INDIA

NATIONAL
TREASURY BANKING
BILL

FUNCTION AND FACILITIES

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 SBI RAILWAY CARD

SBI PLATINUM CARD

SBI YATRA CARD

SERVICES OF SBI
As on 28th dec.2013

State Bank of India offers a wide range of

services in the Personal Banking Segment which are
indexed here. Our products are designed with flexibility to
suit your personal requirements. Enjoy 24 hour facility
through our ATMs - growing speedily it has crossed the
21000 mark Watch this space for more details.
TERM DEPOSITS

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FEATURES  Period of deposit from 7 days to
10 years.
 Deposit Amount: Minimum:
Rs.1000/-, Maximum: No limit
 Payment of interest at
Monthly/Quarterly/Calendar
quarter basis as per your
requirement.
 Payment of interest on monthly
interval will be at discounted
rate.
 Interest will be paid at
the contracted rate
irrespective of change in the rate
thereafter.
 Senior Citizens get 0.25% extra
interest rate
 Loans / OD up to 90% of the
Principal deposit
Premature payment:
 The penalty for premature
withdrawal of deposits below
Rs15 lacs for all tenors will be
0.50% p.a. provided these have
remained with the Bank for at
least 7 days.
 However, for single deposit of Rs
15 lacs and above, there shall be
no penalty for premature
withdrawal for tenors below 1
year provided these have
remained with the bank for at

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 least 7 days.
 In all other cases above one year,
in case of premature withdrawal,
the interest shall be 0.50% below
the rate applicable for the period
the deposit has remained with
the Bank or 0.50% below the
contracted rate, whichever is
lower. However, no interest will
be paid if the deposit remains
with the bank for less than 7
days period.
 Auto renewal is exercised if
maturity instructions are not
given
 Nomination facility available and
recommended
 TDS at prevalent rate is deducted
at source if Form 15G/15H not
submitted.
 TDS will be deducted when
interest paid or accrued or
reinvested per customer, per
branch, exceeds Rs. 10,000 in a
financial year.
 The TDR can be linked to any
Savings Bank or Current Account
from where you can withdraw
periodical interest. TDS
payments, if any, can be made to
the Government as and when it is

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 due from linked account.

AUTOMATIC Automatic renewals will take place

RENEWAL only where there is no maturity
instructions recorded at the time of
opening the Term Deposit account or
anytime before maturity of deposit.

MOST IMPORTANT TERMS & CONDITIONS

1. Interest will be paid at the contracted rate irrespective

of change in the rate thereafter.

2. Period of deposit 07 days to 10 years.
3. Loan / overdraft up to 90% of the deposit amount at

0.50% above the TDR rate.

4. The penalty for premature withdrawal of deposits below

Rs 15 lacs for all tenors will be 0.50% p.a. provided

these have remained with the Bank for at least 7 days.

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 However, for single deposit of Rs 15 lacs and above,

there shall be no penalty for premature withdrawal for

tenors below 1 year provided these have remained with

the bank for at least 7 days.

In all other cases above one year, in case of premature

withdrawal, the interest shall be 0.50% below the rate

applicable for the period the deposit has remained with

the Bank or 0.50% below the contracted rate, whichever

is lower. However, no interest will be paid if the deposit

remains with the bank for less than 7 days period.

5. Interest can be paid on monthly intervals on discounted

rate.
6. Interest can also be paid at Calendar quarter basis.
7. TDS at prevalent Income tax rate is deducted if Form

15G/15H not submitted.

8. Auto renewal is exercised if maturity instructions are

not given.

RECURRING DEPOSIT
Key features-
 Monthly deposits of Minimum Rs.100/- no maximum.
 Minimum period 12 months maximum 120 months.
 Rate of interest as applicable to Bank’s TDR / STDR
for the period of the RD.
 Loan / Overdraft up to 90% available against the
balance in RD account.
 TDS is not applicable.

MOST IMPORTANT TERMS & CONDITIONS

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 1. Monthly Rs. 100/- no maximum. b) Deposit in Multiple

of Rs.10/-
2. Minimum period 12 months maximum 120 months
3. Rate of interest as applicable to Bank’s TDR / STDR for
the period of the RD
4. Premature withdrawal allowed at 0.5% below the rate
applicable for the period the deposit has remained
with the Bank
5. Loan / Overdraft facility available against the balance
in RD account
6. Penalty charges for non-Deposit of monthly
instalments:
A. For a/c of period 5 years and less --Rs. 1.50 per Rs.
100/- per month
B. For a/c of period above 5 years- Rs. 2.00 per Rs.
100/- per month
7. No Cheque Book / ATM Card will be issued
8. Passbooks are issued
9. Nomination facility available
WELCOME to SBI Home Loans
"THE MOST PREFERRED HOME LOAN PROVIDER" voted in AWAAZ
Consumer Awards along with the MOST PREFERRED BANK AWARD
in a survey conducted by TV 18 in association with AC Nielsen-
ORG Marg in 21 cities across India.
Best Practices followed in SBI mentioned below will tell you why it
makes sense to do business with State Bank of India.

SBI Home Loans Unique Advantage

1 Package of exclusive benefits.
2 Low interest rates. Further, we charge interest on a daily
reducing balance!!
3 Low processing charges.
4 No hidden costs or administrative charges.

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5 No prepayment penalties. Reduce your interest burden
and optimally utilize your surplus funds by prepaying the
loan.
6 Over 13,700 branches nationwide, you can get your Home
Loan account parked at a branch nearest to your present
or proposed residence.

SBI NEW CAR LOAN SCHEME

SBI provide the best car loan scheme for you.
Salient features:
 No Advance EMI;
 Longest repayment tenure (7 years);
 Lowest interest rates ;
 Lowest EMI;
 LTV 85% of 'On Road Price' of car (includes
registration, insurance and Extended
Warranty/ Total Service Package/ Annual
Maintenance Contract/ cost of
accessories), 90% in case of Corporate Salary
Package accounts;
 Interest Calculated on Daily
Reducing Balance;
 Flexibility of payment of EMI anytime during
the month;
 No pre-payment penalty;
 Optional SBI Life cover;
 Overdraft facility available.

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For purchase of new passenger cars, Multi Utility Vehicles
(MUVs) and SUVs.
Eligibility:
To avail an SBI Car Loan, you should be:

 Individual between the ages of 21-65 years of

age.
 Regular employee of State / Central
Government, Public Sector Undertaking,
Private Company or a reputed establishment.
 Professionals, self-employed,
businessmen, proprietary/partnership firms
who are an income tax assessee.
 Person engaged in Agricultural and allied
activities.
Gross Annual Income:-
Salaried:
a) For Central Government, Central Public Sector
Undertakings, Defence/ Paramilitary Forces,
Railway and State Government Employees who
have salary package accounts with SBI and
minimum 3 months salary have regularly come in
these accounts, Employees of Public Sector Banks/
Public Sector Insurance Companies: Gross Annual
Income of applicant and/or co-applicant if any,
together should be Rs. 4, 00,000/- p.a. and above.

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b) For Salaried customers other than above
mentioned Categories: Gross Annual Income of
applicant and/or co-applicant if any, together
should be Rs. 6, 00,000/- p.a. and above.
Self employed professionals and Proprietary /
Partnership Firms:
Net Profit or Gross Taxable income of Rs. 6, 00,000/-
p.a. as per ITR after adding back depreciation and
repayment of all existing loans.
Agriculturist: Gross Annual Income of Rs 6, 00,000
and above.
Loan Amount: There is no upper limit for the
amount of a car loan. A maximum loan amount of
48 times of Net Monthly Income or 4 times of Net
Annual Income can be sanctioned.
DOCUMENTS REQUIRED
You would need to submit the following documents
along with the completed application form:
1. Statement of Bank account of the borrower for
last 6 months.
2. 2 passport size photographs of borrower(s).
3. A copy of passport /voters ID card/PAN card.
4. Proof of residence.
5. Latest salary-slip showing all deductions
6 I.T. Returns/Form 16: 2 years for salaried
employees and 2 years for professional/self-

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 employed/businessmen duly accepted by the
ITO wherever applicable
7. Proof of official address for non-salaried
individuals
MARGIN: 15% of the on road price (which includes
vehicle registration charges, insurance, one-time
road tax and accessories).
REPAYMENT
You can enjoy the longest repayment period in the
industry with us as long as 84 months.
Reimbursement of costs of car purchased by own
sources
We also reimburse finance for the cars purchased
out of own funds which are not more than 3 month
old at rate of interest applicable to New Car.

EDUCATION LOANS (SBI STUDENT LOAN SCHEME)

A term loan granted to Indian Nationals for
pursuing higher education in India or abroad where
admission has been secured.

Eligible Courses
a. Studies in India:

 Graduation, Post-graduation including regular

technical and professional Degree/Diploma courses
conducted by colleges/universities approved by UGC/
AICTE/IMC/Govt. etc

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  Regular Degree/ Diploma Courses conducted by
autonomous institutions like IIT, IIM etc
 Teacher training/ Nursing courses approved by Central
government or the State Government
 Regular Degree/Diploma Courses like Aeronautical,
pilot training, shipping etc. approved by Director
General of Civil Aviation/Shipping
 Vocational Training and Skill Development Study
Courses will not be covered under the regular
Education Loan Schemes. A separate scheme for
‘Loans for Vocational Education and Training’ has been
launched which covers financing for such Vocational
courses
b. Studies abroad:
Job oriented professional/ technical Graduation Degree
courses/ Post Graduation Degree and Diploma courses like
MCA, MBA, MS, etc offered by reputed universities
Expenses considered for loan
 Fees payable to college/school/hostel
 Examination/Library/Laboratory fees
 Purchase of Books/Equipment/Instruments/Uniforms,
Purchase of computers- essential for completion of the
course (maximum 20% of the total tuition fees payable
for completion of the course)
 Caution Deposit/Building Fund/Refundable Deposit
(maximum 10% tuition fees for the entire course)
 Travel Expenses/Passage money for studies abroad
 Cost of a Two-wheeler up to Rs. 50,000/-

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Any other expenses required to complete the course like
study tours, project work etc.
Amount of Loan
 For studies in India, maximum Rs. 10 lacs
 Studies abroad, maximum Rs. 30 lacs
Processing Fees
 No processing fee/ upfront charges
 Deposit of Rs. 5000/- for education loan for studies
abroad which will be adjusted in the margin money.

Repayment Tenure
Repayment will commence one year after completion of
course or 6 months after securing a job, whichever is
earlier. In case of married person, co-obligator can be
spouse or the parent(s)/ parents-in-law.

Maximum Loan Limit Repayment Period

Up to Rs. 4 Lacs Up to 10 years

Above Rs. 4 Lacs and up Up to 10 years

to Rs. 7.5 Lacs

Above Rs. 7.5 Lacs Up to 12 years

SECURITY

Particular Security

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 Up to Rs. 4 lacs loanOnly Parent/ Guardian as co-
amount borrower

Parent/ Guardian as co-borrower

and Collateral security in the form
of suitable third party guarantee*.
*Third Party Guarantee can be
Above Rs. 4 lacs to Rs.replaced with Parent/Guardian as
7.50 lacs loan amount co-borrower provided the Gross
Annual Income of Parent/Guardian
(co-borrower) as given in latest
Income Tax Return is 3 times of the
loan amount.

Above Rs. 7.50 lacsParent/ Guardian as co-borrower

loan amount and tangible collateral security

Margin

 For loans up to Rs.4.0 lacs : No Margin

 For loans above Rs.4.0 lacs:
 Studies in India: 5%
 Studies Abroad: 15%

Documentation Required
 Completed Education Loan Application Form.

 Mark sheets of last qualifying examination

 Proof of admission scholarship, studentship etc
 Schedule of expenses for the specified course
 2 passport size photographs
 PAN Card of the student and the Parent/ Guardian
 Borrower's Bank account statement for the last six
months

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  Income tax Returns/ IT assessment order, of last 2 yrs
(If IT Payee)
 Brief statement of assets and liabilities, of the Co-
borrower
 Proof of Income (i.e. Salary slips/ Form 16 etc. if
applicable)

SWOT ANALYSIS

STRENGTHS
 SBI is the largest bank in India in terms of market
share, revenue and assets.
 The bank has a merged with State Bank of Saurashtra,
State bank of Indore and the bank is planning to go
further acquisition in the current FY2013.
 SBI has recently changed
its vision and mission statements showing a sign of
inclination towards new age banking services.

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  State Bank of India has 172 foreign offices in 37
countries across the globe.
 SBI has about 25,000 ATMs and SBI group(including
associate banks) has about 45,000 ATMs.
 SBI has 21,500 branches, including branches that
belong to its associate banks.
 SBI includes 99345 offices in India.

WEAKNESS
 Lack of proper technology driven services when
compared to private banks.
 Employees show reluctance to solve issues quickly due
to higher job security and customers’ waiting period is
long when compared to private banks.
 The bank spends a huge amount on its rented
buildings.
 SBI has the largest number of employees in banking
sector; hence the bank spends a considerable amount
of its income in employee’s salary compensation.
 In spite of modernization, the bank still carries the
perception of traditional bank to new age customers.
 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

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  SBI’s merger with five 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 of Mysore are in approval stage.
 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.
 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.
 Young and talented pool of graduates and B schools
are in rise to open new horizon to so called “old
government bank”.

THREATS

 Net profit of the year has decline from 9166.05 in the

year FY 2012 to 7,370.35 in the year FY2013.
 This shows the reduction in market share to its close
competitor ICICI.
 Other private banks like HDFC, AXIS bank etc.
 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, and
Allahabad bank and Indian bank are showing.

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 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.

EMPLOYEES
 SBI has provided employment to 223,933 people all
over the world.
 SBI has turned into the third-largest employer
in India among listed companies after Coal India
Limited (383,347) and Tata Consultancy Services
(226,751).

RECENT AWARDS AND RECOGNITIONS

 Best Online Banking Award, Best Customer Initiative
Award & Best Risk Management Award (Runner Up) by
IBA Banking Technology Awards 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
 Most Preferred Bank & Most preferred Home loan
provider by CNBC
 Visionaries of Financial Inclusion By FINO

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  According to the Brand Trust Report, 11th most
trusted brand in India.
 Technology Bank of the Year by IBA Banking
Technology Awards

SBI & India’s economic development

 The formation of the State Bank of India aims at
promoting planned economic development of the
country.
 By March 1995 the SBI and its associates over 13,800
small scale business units and other small operators.
The amount of loans outstanding was Rs.9, 200 crores.
 In March 1995, the loans outstanding to farmers rose
to over
Rs.7, 450 crores.
 SBI has also introduced Installment Credit schemes. It
is designed to assist the financing equipment or
machinery used by small and medium size
manufacturing units.
 Out of its 21,500 branches, nearly two-thirds of these
are located in rural and semi-urban areas with a
population of less than 25,000.

Significance and scope

The geographical scope of the study is restricted to GODDA
(JHARKHAND) only with sample size of 50 people.
All the analysis and suggestions are based on the analysis
of the both primary and secondary data.
Therefore the scope of the study revolves around the
following aspects:-
 Consumer perception towards Advance Product

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  Consumer awareness about Advance Product scheme
and its benefit.
 Aware the Bank about the customer problems,
especially in case of automobile sector.

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. The primary
data has been collected with the help of questionnaire as
well as personal observation book, magazine; journals
have been referred for secondary data. The questionnaire
has been drafted & presented by the researcher himself.

 Sample Size:
Sample of 50 people was taken into study, and their
data was collected

 Sampling Technique:
To study the Project, a Simple Random sampling
technique is used.

 Data Collection: Collection of data is done by

Secondary Data & through Questionnaire i.e., Primary
data was collected through Questionnaire.

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 GRAPHICAL REPRESENTATION OF DATA
Q1. On which bank you depend for your regular transaction?

SBI 60 % (30)

ICICI 33 % (16)

HDFC 5% (3)
OTHER 2% (1)

TOTAL NO. OF PEOPLE 50

It has been observed that approximately 60% correspondents are using the
service of SBI for their daily transaction, around 33% of people are using
ICICI Bank for their transaction and only 5% & 2% of people are using HDFC
& other Bank service respectively in GODDA. It also shows that SBI have the
highest market position in Godda as per my sample.

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Q2. Are you aware of products & services provided by SBI?

YES 85% (43)

NO 15% (7)
Total No. of People 50

From the above data it is clear that most of the customers (around 85%) of
Godda have the idea about the product & services of SBI, the rest 15% have
the idea about the product they are using. In this 15% most of the people are
from typical rural area (Farmers).
Q3. If yes are you aware of the advance products (Loan segments) of SBI?

YES 95%(47)

NO 5% (3)
TOTAL NO. OF PEOPLE 50

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It is clear that most of the people have the idea about the advance product
of SBI. Almost all the 95% people who have the idea about the advance
product are the user of SBI product & service.

Q4. Which bank you prefer for taking loans?

SBI 85% (43.5)

ICICI 7% (5)
HDFC 2% (1)

OTHER 1% (0.5)
TOTAL NO. OF PEOPLE 50

According to my sample size 85% of people prefer SBI for loan product, but
some people prefer ICICI, HDFC or OTHER Bank for loan because they are
working with that bank & it is easier for them to get loan from their bank &
it easier for them to pay the interest because it is less as compare to other
bank because they are the employee of that bank.

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Q5. If you prefer SBI for taking loan than what influence you to take Loan

from SBI?

Most of the people said that they prefer SBI for taking loan because of the
transparency and the lowest interest rate for any kind of loan product. And
it is easy to get loan from SBI as compare to other bank because less paper
work is require and as it is the largest govt. bank in India and having
partnership with RBI (Reserve Bank of India) and other association, it is
easier for SBI to give loan to people with a longer repayment period.

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Q6. Do you have any idea about internet banking and mobile banking
facility?

Q.7 which loan product of SBI you have used?

HOME LOAN 47% (23)

EDUCATIONAL LOAN 20% (10)
CAR LOAN 15% (7)
PERSONAL LOAN 10% (6)
OTHER 8% (4)
TOTAL NO. OF PEOPLE 50

From the sample size 85% of people are using the SBI loan product. From the
180 people 47% of people took home loan from SBI. 20% of people took
education loan for their children, 15% of people took car loan from SBI.

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Q8. What do you feel about the services providing by SBI in advance product?

Bad 0% (0)
Satisfactory 2% (1)

Good 55% (27)

Excellent 43% (22)

TOTAL NO. OF 50
PEOPLE

From this it is clear that the service provide by SBI in its advance product is
good in between the customer. All of them satisfy with the product provide
by SBI. 55% of people said that the service provide by SBI is good & 43%
said it is excellent & just 2% of people said that it is satisfactory.

Q9. Which features you like most in Loan segments of SBI?

LESS PAPER WORK 3% (2)

ATTRACTIVE INTEREST 35% (17)
TRANSPARENCY 20% (10)
SIMPLE AND FAST 2% (1)
LONGER REPAYMENT 40% (20)
TOTAL NO. OF PEOPLE 50

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Most of the people like the attractive interest rate & longer repayment
period. It’s easier for people to repay the whole loan amount with its interest
with low interest rate and with longer repayment period.

10. Any suggestion you want to give for the betterment of SBI advance
product?

PROJECT Findings:
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 From this project it is found that SBI advance product
having the 1st place in the market at Godda, there is a
great opportunity to compete with ICICI Bank & to
retain its customer by fulfilling the requirement of
customer in SBI advance product.
 It has been observed that approximately 85%
correspondents are using advance product of SBI and
15% are not using any type of advance product of SBI
in GODDA.
 All of SBI customers are satisfied with the services
provided by the bank.
 Many of these customers satisfied with the low
interest rate and longer repayment period of the
advance product.
 Most of the customers at GODDA prefer to take loan
from SBI.
 Approximately 43% of advance product users said that
the service of SBI in advance product is excellent.
 A response from customer care is so clear & good.
 Many customers have no time to call customer care so
that they are not able to know about the service &
features of SBI advance product.
 Most customers are shifted from other bank’s advance
product to SBI because of hidden charges, high
interest rate, less repayment period.
 Government employees are more concern than private
employees for advance product.

REASONS FOR HIGHLY USE OF SBI ADVANCE PRODUCT:

 LESS PAPER WORK

 ATTRACTIVE INTEREST RATES
 TRANSPARENCY
 SIMPLE & FAST PROCESSING
 LONGER REPAYMENT PERIOD
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  QUICK PROCESSING

Suggestion & Recommendation

Recommendation:

 Customer awareness programmed is required so that more people

should attract towards advance product.
 If there are any kind of hidden charges than that must disclose to
customer before giving loan to them.
 SBI must take some steps so that customers can get their loan in time.
Like phone verification by customer care that one customer is got their
loan on time or not .It must be before a certain date so necessary steps
can be taken.
 SBI should more concern about physical verification rather than phone
verification so it will avoid fraud or cheating.
 Advance product selling agents must not give any type of wrong
information regarding advance product.
 For the better service new offers would be require.
 SBI customer care should more concern about the fastest settlement of
customer problems.
 Before deducting or charging any monetary charge SBI must consult with
customer.
 Agents should be trained, well educated & proper trained to convince
the people about different advance product.
 It is the duty of the bank to disclose all the material facts regarding
advance product, like interest charged, repayment period, other types
of charges, etc.
 Special scheme should be implemented to encourage both customer and
agents.
 The bank should increase the period for repayment of loan.
 SBI should more focus on Retaining existing customers.

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 SBI must focus on Segmentation based on customer knowledge Product
offering based on customer demand.
 SBI must take feedbacks of customers regarding features & services.

SUGGESTIONS GIVEN BY THE CONSUMERS AT

THE TIME OF SURVEY:

 There is more time period for repayment of education loan.

 Education loan should be providing to private college also

which is not under AICTE or any kind of University.

 SBI should take steps to solve customer problems

immediately.

 Agents should be trained, well educated & proper trained to

convince the people about different advance product.

 Loan sanction date should be according to customer

convenient.

 A customer awareness programmed should be taking place in

rural area.

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 Conclusion
From the analysis part it can be conclude that customers
have a good respond towards SBI advance products in
GODDA. 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.

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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Name - _____________________________________
Occupation-__________________________________
Contact Detail -_______________________________

Seria Questions Ye No No. No. of

l No. s Respons Respondent
s
e
1 On which bank you 50 0 0 50
depend for your regular
transaction?
a) SBI
b) ICICI Bank
c) HDFC Bank
d) Other Bank, Specify
(_____________)

2 Are you aware of 43 7 0 50

products & services
provided by SBI?
3 If yes are you aware of 47 3 0 50
the advance products
(Loan segments) of SBI?

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4 Which bank you prefer 50 0 0 50
for taking loans?
a) SBI
b) ICICI Bank
c) HDFC Bank
d) Other Bank, Specify
(_____________)

5 If you prefer SBI for 45 2.5 2.5 50

taking loan than what
influence you to take
Loan from SBI?
6 Do you have any idea 45 2.5 2.5 50
about internet banking
and mobile banking
facility?
7 Which loan product of 50 0 0 50
SBI you have used?
a) Home Loan
b) Education Loan
c) Car Loan
d) Personal Loan
e) Other Loans,
Specify
( ______________ )

8 What do you feel about 50 0 0 50

the services providing
by SBI in advance
product?
a) Bad
b) Satisfactory
c) Good
d) Excellent

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9 Which features you like 50 0 0 50
most in Loan segments
of SBI?
a) Less paper work
b) Attractive interest
rate
c) Transparency
d) Simple & fast
processing
e) Flexibility to choose
an EMI base loan or
an overdraft
f) Longer tenure lone
for ease of
repayment
g) Specially design
product for self
employed
10 h) suggestion
Any Any other feature,
you 25 22. 2.5 50
want to give for the 5
betterment of SBI
advance product.

INTERNET:

 www.google.co.in
 www.sbi.com
 www.sbi.co.in
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 www.bnet.com

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