2. 2
CHAPTER- 1
COMPANY PROFILE
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. As of December 2013, it had assets
of US$388 billion and 17,000 branches, including 190 foreign offices, making it
the largest banking and financial services company in India by assets.
State Bank of India is one of the Big Four banks of India, along with ICICI
Bank, Punjab National Bank and Bank of Baroda.
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,
3. 3
with Reserve Bank of India taking a 60% stake, and renamed it the State Bank
of India. In 2008, the government took over the stake held by the Reserve Bank
of India.
History of SBI:-
The roots of the State Bank of India lie in the first decade of the 19th century,
when the Bank of Calcutta, later renamed the Bank of Bengal, was established on
2 June 1806. The Bank of Bengal was one of three Presidency banks, the other
two being 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.
Seal of Imperial Bank of India
4. 4
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.
SBI has acquired local banks in rescues. The first was the Bank of Behar (est.
1911), which SBI acquired in 1969, together with its 28 branches. The next year
SBI acquired National Bank of Lahore (est. 1942), which had 24 branches. Five
years later, in 1975, 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 standard
typeface, but also utilises other typefaces.
On October 7, 2013, Arundhati Bhattacharya became the first woman to be
appointed Chairperson of the bank.
Group Photograph of Central Board (1921)
5. 5
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.
Main Branch of SBI in Mumbai.
6. 6
Operations:-
SBI provides a range of banking products through its network of branches in India
and overseas, including products aimed at non-resident Indians (NRIs). SBI has 14
regional hubs and 57 Zonal Offices that are located at important cities throughout
India.
Domestic presence:-
SBI had 14,816 branches in India, as on 31 March 2013, of which 9,851 (66%)
were in Rural and Semi-urban areas. In the financial year 2012-13, its revenue was
INR 200,560 Crores (US$ 36.9 billion), out of which domestic operations
contributed to 95.35% of revenue. Similarly, domestic operations contributed to
88.37% of total profits for the same financial year.
International presence:-
As of 28 June 2013, the bank had 180 overseas offices spread over 34
countries. It has branches of the parent in Moscow, Colombo, Dhaka,
Frankfurt, Hong Kong, Tehran, Johannesburg, London, Los Angeles, Male in
the Maldives, Muscat, Dubai, New York, Osaka, Sydney, and Tokyo. It
has offshore banking units in the Bahamas, Bahrain, and Singapore, and
representative offices in Bhutan and Cape Town. It also has an ADB in Boston,
USA.
The Canadian subsidiary, State Bank of India (Canada) also dates to 1982. It has
seven branches, four in the Toronto area and three in the Vancouver area.
SBI operates several foreign subsidiaries or affiliates. In 1990, it established an
offshore bank: State Bank of India (Mauritius). SBI (Mauritius) has 15 branches
in major cities/towns of the country including Rodrigues.
In 1982, the bank established a subsidiary, State Bank of India (California), 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.
7. 7
The Israeli branch of the State Bank of India located in Ramat Gan
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 55% of Nepal SBI Bank, which has branches throughout the
country. In Moscow, SBI owns 60% of Commercial Bank of India, with Canara
Bank owning the rest. 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.
8. 8
Associate banks:-
SBI has five associate banks; all use the State Bank of India logo, which is a blue
circle, and all 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
State Bank of India
Earlier SBI had seven associate banks, all of which had belonged to princely
states until the government nationalised them between October 1959 and May
1960. In tune with the first Five Year Plan, which prioritised the development of
rural India, the government integrated these banks into State Bank of India
system to expand its rural outreach. There has been a proposal to merge all the
associate banks into SBI to create a "mega bank" and streamline the group's
operations.
The first step towards unification occurred on 13 August 2008 when State Bank of
Saurashtra merged with SBI, reducing the number of associate state banks from
seven to six. Then on 19 June 2009 the SBI board approved the absorption
of State Bank of Indore. SBI holds 98.3% in State Bank of Indore. (Individuals who
held the shares prior to its takeover by the government hold the balance of
1.77%.)
The acquisition of State Bank of Indore added 470 branches to SBI's existing
network of branches. Also, following the acquisition, SBI's total assets will inch
very close to the 10 trillion mark (10 billion long scale). The total assets of SBI
and the State Bank of Indore stood at 9,981,190 million as of March 2009. The
process of merging of State Bank of Indore was completed by April 2010, and the
SBI Indore branches started functioning as SBI branches on 26 August 2010.
9. 9
Non-banking subsidiaries
Apart from its five associate banks, 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
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"
Employee
SBI is one of the largest employers in the country having 228,296 employees as
on 31 March 2013, out of which there were 46,833 female employees (21%)
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and 2,402 disabled employees (1%). On the same date, SBI had 43,550
Schedule Caste (19%) and 16,764 Schedule Tribe (7%) employee. The
percentage of Officers, Assistants and Sub-staff was 35%, 48% and 17%
respectively on the same date.
Hiring drive: The bank hired 20,682 Assistants in FY 2012-13, from over 3
million applicants, for expansion of the branch network and to mitigate staff
shortage, particularly at rural and semi-urban branches. In the same year, it
recruited 847 probationary officers from around 1.7 million candidates who
applied for an officer position.
Staff productivity: As per its Annual Report for FY 2012-13, each employee
contributed to revenues of INR 94.4 million and net profit of INR 0.65 million.
Recent 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 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. 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.
COMPETITORS
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
12. 12
Top Performing Foreign Banks
Citibank
Standard Chartered
HSBC Bank
ABN AMRO Bank
American Express
SWOT ANALYSIS OF SBI:
Strength/ Opportunities:
The growth for SBI in the coming years is likely to be fuelled by the following
factors:
• Continued effort to increase low cost deposit would ensure improvement in
NIMs and hence earnings.
• Growing retail & SMEs thrust would lead to higher business growth.
• Strong economic growth would generate higher demand for funds pursuant
to higher corporate demand for credit on account of capacity expansion.
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Weakness/ Threats:
The risks that could ensue to SBI in time to come are as under:
• SBI is currently operating at a lowest CAR. Insufficient capital may restrict the
growth prospects of the bank going forward.
• Stiff competition, especially in the retail segment, could impact retail growth
of SBI and hence slowdown in earnings growth.
• Contribution of retail credit to total bank credit stood at 26%. Significant
thrust on growing retail book poses higher credit risk to the bank.
• Delay in technology up gradation could result in loss of market shares.
• Management indicated a likely pension shortfall on account of AS-15 to be
close to
Rs50bn.
• Slow down in domestic economy would pose a concern over credit off-take
thereby impacting earnings growth.
14. 14
DIFFERENT PRODUCTS OF SBI:
DEPOSIT LOANS CARDS DIFFERENT
CREDIT CARDS
Savings Account Home
Loans
Consumer
Cards
SBI
Internation
al cards
Life Plus Senior
Citizens Savings
Account
Loan
Against
Property
Credit Card SBI Gold
cards
Fixed Deposits Personal
Loans
Travel
Card
SBI Gold
Master
cards
SecurityDeposit
s
Car Loan Debit Cards Your City
Your Cards
Recurring
Deposits
Loans
against
Securitie
s
Commercia
l Cards
Tax-Saver Fixed
Deposit
Two
Wheeler
Corporate
Cards
Partnershi
p Cards
Salary Account Pre-
approve
d Loans
Prepaid
Card
Advantage
Woman
Savings Account
Retail
Asset
Purchase
Card
SBI
Employee
Cards
Rural Savings
Account
Farmer
Finance
Distribution
Cards
People's Savings Business Business SBI
16. 16
Introduction to Advance Product:
Now a day not all the people have the capacity to fulfill their requirement by
their own earning, that’s why they need help from others. For this so many
government & private sector bank provide them money to fulfill their
requirement, that’s call the Advance Product (loan product) of the bank. All the
banks have so many different types of advance product as per the requirement
of the people or customers. In Bhubaneswar also there are so many banks
those provide loan to the people for different causes.
Types of Advance Product
Home Loan
Educational Loan
Car Loan
Personal Loan
Property Loan
Loan Against SharesDebentures
Etc.
Now a day a large no. of people are taking loan form different banks. It helps
people to fulfill their need and it really easy to repayment the loan amount
with a longer repayment period.
17. 17
SBI Advance Product
SBI Home Loans:
Purpose
Purchase/ Construction of House/ Flat
Purchase of a plot of land for construction of House
Extension/ repair/ renovation/ alteration of an existing House/ Flat
Purchase of Furnishings and Consumer Durables as a part of the project cost.
Takeover of an existing loan from other Banks/ Housing Finance Companies.
Eligibility:
Minimum age 18 years as on the date of sanction
Maximum age limit for a Home Loan borrower is fixed at 70 years, i.e. the age
by which the loan should be fully repaid.
Availability of sufficient, regular and continuous source of income for servicing
the loan repayment.
18. 18
Welcome to SBI Home Loan Sanction
Attractive Features
A. Interest Rate
(w.e.f. 20.12.2013)
Upto Rs.75 Lacs - 10.15% p.a.
Above Rs.75 Lacs - 10.30% p.a.
B. Present EMI Rs.889 (per lac for 30 years period @10.15%)
C. Processing Fee
(w.e.f. 01.06.2013)
0.25% of the loan amount Min. Rs.1000/- and
Max. Rs.10000/-
D. Prepayment
Penalty
Not chargeable
E. Margin
Loan up to Rs.75 lacs - 15% for house/Flat ready for
possession ELSE 20%
Loan above Rs.75 lacs – 20% for house/Flat ready for
possession ELSE25%
F. Maximum Period
of Loan
30 Years
G. Any advance EMI
recovery
(at the time of
disbursement of
Loan)
NIL
19. 19
CAR LOAN:
Purpose
You can take finance for:
A new car, jeep or Multi Utility Vehicles (MUVs)
A used car / jeep (not more than 5 years old). (Any make or model).
Take over of existing loan from other Bank/Financial institution (Conditions
apply)
Eligibility
To avail an SBI Car Loan, you should be :
Individual between the age of 21-65 years of age.
A Permanent employee of State / Central Government, Public Sector
Undertaking, Private company or a reputed establishment or
A Professionals or self-employed individual who is an income tax
assessee or
A Person engaged in agriculture and allied activities.
Net Annual Income Rs. 100,000/- and above.
20. 20
Welcome to SBI CAR LOAN
Attractive Features
A. Interest Rate
(w.e.f. 01.02.2014)
For any amount any tenor
0.95% above base rate i.e. 10.95% p.a. (For
Term Loans and Overdraft)
(Base Rate: 10.00% p.a.)
B. Present EMI
Rs. 1710 (Per lac for 7 years period @
10.95%)
C. Processing Fee Rs. 500/- per application.
D. Prepayment Penalty Not chargeable
E. Other charges No such charges
F. Margin 15% on Road Cost
G. Maximum Period of Loan 7 Years
H. Any advance EMI recovery
(at the time of disbursement of
Loan)
NIL
Documents required
you would need to submit the following documents along with the completed
application form if you are an existing SBI account holder:
1. Statement of Bank account of the borrower for last 12 months.
2. 2 passport size photographs of borrower(s).
3. Signature identification from bankers of borrower(s).
4. A copy of passport /voters ID card/PAN card.
5. Proof of residence.
6. Latest salary-slip showing all deductions
21. 21
7. I.T. Returns/Form 16: 2 years for salaried employees and 3 years for
professional/self-employed/businessmen duly accepted by the ITO
wherever applicable to be submitted.
8. Proof of official address for non-salaried individuals.
If you are not an account holder with SBI you would also need to furnish
documents that establish your identity and give proof of residence.
Prepayment Penalty:
Prepayment fee of 2% of the amount of the loan prepaid will be levied subject
to certain conditions
FLOATING RATES:
A. for Term Loans
1. New Vehicles (Term Loan) Floating
Repayment Period All Centers (SBAR - 12.25%)
Upto 3 years (for loans Rs. 7.5 lac & above) 0.75% below SBAR i.e. 11.50% p.a.
Upto 3 years (for loans below Rs. 7.5 lac) 0.50% below SBAR i.e. 11.75%p.a.
Above 3 yrs up to 5 yrs (for all loans) 0.50% below SBAR i.e. 11.75% p.a.
Above 5 yrs up to 7 yrs (for all loans) 0.25% below SBAR i.e. 12.00% p.a.
2. Used Vehicles: Floating
Repayment Period All Centers (SBAR-12.25%)
Upto 3 years 3.00% above SBAR i.e. 15.25% p.a.
Above 3 yrs up to 7 yrs 3.25% above SBAR i.e. 15.50% p.a.
22. 22
B. For Overdrafts: For New Vehicles
Repayment Period All Centres (SBAR 12.25%)
Upto 3 years (for loans Rs. 7.5 lac & above) 0.25% below SBAR i.e. 12.00% p.a.
Upto 3 years (for loans below Rs. 7.5 lac) At SBAR i.e. 12.25% p.a.
Above 3 yrs up to 5 yrs (for all loans) At SBAR i.e. 12.25% p.a.
Above 5 yrs up to 7 yrs (for all loans) 0.25% above SBAR i.e. 12.50% p.a.
EDUCATION LOAN:
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
· Regular Degree/ Diploma Courses conducted by autonomous
institutions like IIT, IIM etc
23. 23
· 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 upto Rs. 50,000/-
24. 24
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
Interest Rates
Base Rate 10.00 % w.e.f. 07.11.2013
EDUCATION LOANS
SBI Student Loan Scheme
Loan Amount Rate of Interest*
For loans upto Rs.4 lacs 3.50% above Base Rate,
currently 13.50% p.a.
Above Rs.4 lacs and upto
Rs.7.50 lacs
3.75% above Base Rate,
currently 13.75% p.a.
Above Rs.7.50 lacs 1.75% above Base Rate,
currently 11.75% p.a.
*(0.50% concession in interest for girl students)
* (1% concession for full tenure of the loan, if interest is serviced promptly as
and when applied during the moratorium period, including course duration#
)
SBI Scholar Loan Scheme
ROI
25. 25
List A 100bps above base rate i.e., 11.00% p.a. at
present
Further concessions:
· 25 bps - work experience of more than 2
years
· 50 bps - with parent/ spouse/ guardian
as co-borrowers
· 75 bps - collateral security >= the loan
amount
(effective rate of interest with all 3
concessions above not to be lower than 25
bps above base rate, presently 10.25 % p.a.)
List B 175bps above Base rate i.e. 11.75% p.a.
· 1% concession for full tenure of the loan,
if interest is serviced promptly as and
when applied during the moratorium
period, including course duration#
IT exemption under Section 80(E) in respect of interest paid in all Education
Loans
SBI Loan Scheme for Vocational Education and Training
3.50% above Base Rate, currently 13.50% p.a.
· 1% concession for full tenure of the loan, if interest
is serviced promptly as and when applied during
the moratorium period, including course duration#
#
Note: 1% interest concession for servicing interest is available if interest is
serviced promptly soon after application but not later than the following
month.
26. 26
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.
Maximum Loan Limit Repayment Period
Upto Rs. 4 Lacs Upto 10 years
Above Rs. 4 Lacs and upto Rs. 7.5
Lacs
Upto 10 years
Above Rs. 7.5 Lacs Upto 12 years
Security
Particular Security
Upto Rs. 4 lacs loan amount Only Parent/ Guardian as co-borrower
Above Rs. 4 lacs to Rs. 7.50
lacs loan amount
Parent/ Guardian as co-borrower and
Collateral security in the form of suitable third
party guarantee*.
*Third Party Guarantee can be replaced with
Parent/Guardian as co-borrower provided the
Gross Annual Income of Parent/Guardian (co-
27. 27
borrower) as given in latest Income Tax
Return is 3 times of the loan amount.
Above Rs. 7.50 lacs loan
amount
Parent/ Guardian as co-borrower and tangible
collateral security
In case of married person, co-obligator can be either spouse or the parent(s)/
parents-in-law
Margin
For loans up to Rs.4.0 lacs : No Margin
For loans above Rs.4.0 lacs:
o Studies in India: 5%
o 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
Income tax Returns/ IT assessment order, of last 2 yrs (If IT Payee)
28. 28
Brief statement of assets and liabilities, of the Co-borrower
Proof of Income (i.e. Salary slips/ Form 16 etc. if applicable)
SBI SARAL PERSONAL LOAN:
Do you want funds readily available to you whenever you desire or need, be it
a sudden vacation that you plan with your family or urgent funds required for
medical treatment? SBI Saral - Personal Loan is the answer to your questions.
Access this facility from over 3000 branches across the country and confidently
face the challenge of meeting any kind of personal expenses!!
Enjoy the SBI Advantage :
· Low interest rates. Further, we charge interest on a daily reducing balance!!
· Low processing charges; only 2%-3% of loan amount
· No hidden costs or administrative charges.
· No security required ……which means minimal documentation…something
that you had always wanted.
· No prepayment penalties. Reduce your interest burden and optimally utilize
your surplus funds by prepaying the loan (1% of the loan amount will be
charged if you repay the loan before 6 months)
· Long repayment period of up to 48 months.
The Scheme
Purpose
The loan will be granted for any legitimate purpose whatsoever (e.g. expenses
for domestic or foreign travel, medical treatment of self or a family member,
meeting any financial liability, such as marriage of son/daughter, defraying
educational expenses of wards, meeting margins for purchase of assets etc.)
29. 29
Eligibility
You are eligible if you are a Salaried individual of good quality corporate, self
employed engineer, doctor, architect, chartered accountant, MBA with
minimum 2 years standing.
Salient Features
Loan Amount
Your personal loan limit would be determined by your income and repayment
capacity.
Minimum : Rs.24,000/- in metro and urban centres
Rs.10,000/- in rural/semi-urban centres
Maximum : 12 times Net Monthly Income for salaried individuals and
pensioners subject to a ceiling of Rs.10 lacs in all centres
Documents Required
Important documents to be furnished while opening a Personal Loan Account:
For existing bank customers
Passport size photograph
From salaried individuals
Latest salary slip and Form 16
Margin
We do not insist on any margin amount.
Interest Rates:
PERSONAL LOAN
Clean Public Loan
30. 30
Type of Facility Rate of Interest
Clean Overdraft 8.25% above Base Rate,
currently 18.25% p.a.
Personal Loans Scheme
(SBI Saral)
8.50% above Base Rate
floating, currently 18.50%
p.a.
SBI Loan to Pensioners
(All variants)
4.75% above Base Rate,
currently 14.75% p.a.
Festival Loan Scheme 6.75% above Base Rate,
currently 16.75% p.a.
Loan against Bank Time Deposit
Loan against Bank Time
Deposits
0.50% over the rate paid
on Relative time deposit.
Rent Plus Scheme
For Loans upto Rs 7.50
Cr in Metro Center and
Rs 5.00 Cr in Non-
Metro Center
3.10% above Base Rate,
currently 13.10% p.a.
In all other cases 3.25% above Base Rate,
currently 13.25% p.a.
Xpress Credit
Type Facility Rate of Interest
Term Loan Check-off
from
Employer
5.00%- 7.00% above
Base Rate Floating,
currently 15.00% -
17.00% p.a. depending
on the Check off
31. 31
Repayment
The loan is repayable in 48 EMI. You are allowed to pay more than the EMI if
you wish to, without attracting any prepayment penalty.
Security
NIL
Processing Fee
Processing charges are 2-3% of the loan amount. This is amongst the lowest
fees in the industry. Processing fees have to be paid upfront. There are no
hidden costs or other administrative charges.
PROPERTY LOAN:
A dream comes true. An ALL PURPOSE LOAN for anything that life throws up at
you!! Do you need funds for a Marriage ceremony, want to take your family to
a well-deserved holiday or for a sudden medical emergency? you have some
property, but would rather not sell it? Then why not avail of this ALL PURPOSE
LOAN from SBI? SBI now makes it very much possible for you to only keep your
property but also have liquid funds.
Enjoy the SBI Advantage
· Complete transparency in operations
· Access this loan from our wide network of branches
· Interest rates are levied on a monthly/daily reducing balance method
· Lowest processing charges.
32. 32
· Long repayment period of 60 months, upto 120 months for salaried
individuals with check-off facility
· No Hidden costs or administrative charges.
· No prepayment penalties. You can have surplus funds at any time thereby
conveniently reducing your loan liability and interest burden.
Property Loan Scheme
Avail of an All-Purpose loan against mortgage of any of your property. We offer
you these loans at all our Personal Banking Branches and those branches
having Personal Banking Divisions amongst others.
Purpose
This is an all purpose loan, i.e., the loan can be obtained for any purpose
whatsoever.If amount of loan is Rs.25.00 lacs and above then purpose of loan
will have to be specified alongwith an undertaking that loan will not be used
for any speculative purpose whatever including speculation on real estate and
equity shares.
Eligibility
You are eligible if you are:
A. An individual who is;
a. An Employee or
b. A Professional, self-employed or an income tax assesse or
c. Engaged in agricultural and allied activities.
B. Your Net Monthly Income (salaried) is in excess of Rs.12,000/- or Net Annual
33. 33
Income (others) is in excess of Rs.1,50,000/-.
The income of the spouse may be added if he/she is a co-borrower or a
guarantor.
C. Maximum age limit: 60 years.
Salient Features
Loan Amount
Minimum: Rs.25,000/-
Maximum : Rs.1 crore. The amount is decided by the following calculation:
24 times the net monthly income of salaried persons (Net of all
deductions including TDS) OR
2 times the net annual income of others (income as per latest IT return
less taxes payable)
Margin
We will finance up to 60% of the market value of your property.
Interest
Base Rate 10.00% w.e.f. 07.11.2013
Loan against Gold Ornaments
Size of Credit Limit Rate of Interest
Upto Rs. 1,00,000/- 4.25% above Base Rate
Floating, currently 14.25%
p.a.
34. 34
Above Rs. 1,00,000/- 4.75% above Base Rate
Floating, currently 14.75%
p.a.
Loan against Mortgage of Immovable Property
Size of Credit Limit
(Term Loan)
Rate of Interest
For Loans upto Rs 1 Cr 2.75% above Base Rate
Floating, currently 12.75%
p.a.
For Loans above Rs 1
Cr
3.00% above Base Rate
Floating, currently 13.00%
p.a.
*No Overdraft against Mortgage of Property
Repayment
Maximum of 60 equated monthly installments, up to 120 months for salaried
individuals with check-off facility. You could opt to divert any surplus funds
towards prepayment of the loan without attracting any penalty.
Processing Fees
2% of the loan amount [inclusive of the service tax]. Max of Rs. 50,000/-
Security
As per banks extant instructions.
35. 35
LOAN AGAINST SHARES DEBENTURES:
Eligibility
This facility is available to our existing individual customers enjoying a strong
relationship with SBI. This loan could be availed either singly or as a joint
account with spouse in 'Either or Survivor'/ 'Former or Survivor' mode. It is
offered as an Overdraft or Demand Loan.
The facility is available at 50 select centers.
Salient Features:
Purpose
For meeting contingencies and needs of personal nature. Loan will be
permitted for subscribing to rights or new issue of shares / debentures against
the security of existing shares / debentures. Loan will not be sanctioned for (i)
speculative purposes (ii) inter-corporate investments or (iii) acquiring
controlling interest in company / companies.
Loan Amount
You can avail of loans up to Rs 20.00 lacs against your shares/debentures.
Documents Required
You will be required to submit a declaration indicating:
Details of loans availed from other banks/ branches for acquiring shares/
debentures.
Details of loans availed from other banks/ branches against security of
shares/ debentures
Margin
You will need to provide a margin amount of 50% of the prevailing market
prices of the shares/ non-convertible debentures being offered as security.
(The market prices refer to the prices in the Stock Exchanges as reported in the
Economic Times.)
Interest
At SBAR Floating i.e. 12.25% p.a.
Repayment Schedule
To be liquidated in maximum period of 30 months through a suitable reducing
DP programme.
36. 36
In case of a default or if the outstanding is over Rs.20.00 lacs, the
shares/debentures will be transferred in the name of the Bank.
Security:
Pledge of the demat shares/debentures against which overdraft is granted.
SERVICES:-
Internet Banking
Mobile Banking
ATM Services
Demat Services
INTERNET BANKING
www.onlinesbi.com, the Internet banking portal of our bank, enables its retail
banking customers to operate their accounts from anywhere anytime,
removing the restrictions imposed by geography and time. It's a platform that
enables the customers to carry out their banking activities from their desktop,
aided by the power and convenience of the Internet.
37. 37
Using Internet banking services, you can do the following normal banking
transactions online:
· Funds transfer between own accounts.
· Third party transfers to accounts maintained at any branch of SBI
· Group Transfers to accounts in State Bank Group
· Inter Bank Transfers to accounts with other Banks
· Online standing instructions for periodical transfer for the above
· Credit PPF accounts across branches
· Request for Issue of Demand Draft
· Request for opening of new accounts
· Request for closure of Loan Accounts
· Request for Issue of Cheque Book
Apart from these, the other salient value-added features available are:
· Utility bill payments
· Online Ticket Booking for travel by Road, Rail and Air
· SBILIFE, LIC and other insurance premia payments
· SBI and other Mutual funds Investments
· SBI and other Credit Card dues payments
· Tax Payment – Income, Service, State Govt
· Customs Duty Payment
· Online Share Trading (eZ-trade@SBI)
38. 38
· Online Application for IPO
· Fee Payment to select educational institutions including IITs and NITs
Truly smart services to cover most of your banking transactions. All this and
much more, from your desktop.
All our branches are enabled for Internet Banking. Contact your branch for
availing this service. You can visit www.onlinesbi.com for downloading the
registration form
MOBILE BANKING:-
39. 39
State Bank FreedoM “ Your Mobile Your Bank”
Away from home, balance enquiries can be made and/or money sent to the
loved ones or bills can be paid anytime 24x7!!! That is what State Bank
FreedoM offers - convenient, simple, secure, anytime and anywhere banking.
1. Mobile Banking Service over Application/ Wireless Application Protocol
(WAP)
The Mobile Banking Application is available for java, Blackberry, Android, i-
phones and Windows mobile phones. The service can also be availed via WAP
on all phones with GPRS connection.
The following services can be availed through the Mobile Banking application
and WAP:
Funds transfer (within and outside the bank)
Immediate Payment Services (IMPS): Click here for details.
Enquiry services (Balance enquiry/ Mini statement)
Demat Account Services
Requests (Cheque book request/Generate OTP)
Bill Pay (Utility bills, credit cards, Insurance premium), Donations,
Subscriptions
Top up / Recharge (Mobile /DTH /MobiCash wallet Top up)
M Commerce (Merchant payments, SBI life insurance premium)
Business Rules
a. All Current/ Savings Bank Account holders in P segment and proprietary
concerns in SME segment are eligible.
b. Transaction limit per day is Rs. 50,000/- with a calendar month limit of
Rs. 2,50,000/-
c. Service available over all telecom service providers.
40. 40
d. The Service is free of charge. SMS/GPRS cost will be borne by the
customer.
2. Mobile Banking Service over SMS:
The service is available on all phones. You can send keywords as SMS to
9223440000. Click here for the list of keywords. Ordinary SMS charges are
applicable.
The following services can be availed through SMS:
· Enquiry Services (Balance Enquiry/Mini Statement)
· Prepaid Mobile / MobiCash wallet Top up
· DTH Recharge
· IMPS Fund transfer – (Mobile number & MMID and Account
Number & IFS Code)
· Change MPIN
· IMPS Merchant payments
Business Rules
a. All Current/ Savings Bank Account holders in P segment are eligible.
b. Transaction limit per day is Rs. 1,000/- with a calendar month limit of Rs.
5,000/- . However, customers desiring to transact up to Rs. 5000/- per
day or Rs 25,000/- per month may do so after obtaining a One Time
Password (OTP).
c. Service available over all telecom service providers.
d. The Service is free of charge. SMS cost will be borne by the customer.
e. As a precaution, Customers are requested to delete all the messages
sent to the number 9223440000, once the response for their request has
been received.
3. Mobile Banking Service over USSD (Unstructured Supplementary Service
Data)
41. 41
The service is available on all phones except CDMA phones. Downloading of
application is not required. Subscribers have to dial *595# to avail the service.
The following services can be availed through USSD:
· Enquiry Services (Balance Enquiry/Mini Statement)
· Mobile Top up
· Funds Transfer (within Bank)
Business Rules
All Current/ Savings Bank Account holders in P segment are eligible.
a. Transaction limit per day is Rs. 1,000/- with a calendar month limit of Rs.
5,000/- .
b. The Service is available for subscribers of select telecom operators only.
c. The Service is free of charge. USSD session charges will be borne by the
customer.
d. The service is session based and requires a response from the user
within a reasonable time.
ATM SERVICES :-
STATE BANK ATM SERVICES
State Bank offers you the convenience of 43,000+ ATMs in India, the largest
network in the country and continuing to expand fast! This means that you can
transact free of cost at the ATMs of State Bank Group using any State Bank
ATM-cum-Debit Card (This includes the ATMs of State Bank of India as well as
42. 42
the Associate Banks - namely, State Bank of Bikaner & Jaipur, State Bank of
Hyderabad, State Bank of Mysore, State Bank of Patiala and State Bank of
Travancore.)
KINDS OF CARDS ACCEPTED AT STATE BANK ATMs
Besides all debit cards issued by State Bank of India, following cards are also
accepted at State Bank ATMs:
1) State Bank Credit Card
2) Cards issued by other banks displaying Maestro, Master Card, Cirrus, VISA,
VISA Electron, and Rupay logos
3) All Debit/ Credit Cards issued by any bank outside India displaying Maestro,
Master Card, Cirrus, VISA and VISA Electron logos
State Bank ATM-cum-Debit Cards:
India's largest bank is proud to offer you a range of debit cards to suit your
needs. Apart from access to our ATM network these cards can be used at
merchant establishments. Click here to know about card offerings.
ATM Access and enhanced convenience
v Get a State Bank ATM-cum-Debit card and transact for FREE at any of our
43,000+ ATMs in India. Click herefor the list of ATMs in India or to find
the nearest ATM you are looking for!
v You can also transact at over 1 lakh ATMs of other banks linked to the
National Financial Switch. As per RBI guidelines, you are entitled to 5
FREE transactions (Financial and Non-Financial) in a calendar month (for
Savings Bank account holders only).
v You can also use your debit card to make payments for purchases at
more than 6 lakh merchant establishments viz. shops, restaurants,
shopping malls, hotels, petrol pumps and many other outlets.
ATM Features:
Use the ‘Banking’ option on State Bank ATMs and enjoy a host of services:
43. 43
Cash Withdrawal
The most popular service on our ATMs enables customers to withdraw up to a
daily limit of Rs. 40,000/- (limit on Classic Debit Card. Higher value cards
permit daily withdrawal limits of up to Rs. 1 lakh per day)
Fast Cash
A service which enables you to withdraw your preferred amounts with just a
touch. The options in the denomination of 100, 200, 500, 1000, 2000, 3000,
5000, 10,000 are available.
Pin Change
Use this service to change your password at regular intervals.
Balance Enquiry
Expecting an inflow of funds in your account? Use this service to check the
current available balance in your account. This service is also available on the
main option screen after swiping your card. You can also ‘Go Green’ by
selecting the view option as the balance is displayed on the screen else get a
transaction receipt by selecting print.
Ministatement
Keep track of the transactions in your account by availing this service. Mini-
statement gives you an insight into the last 10 transactions in your account.
Use the ‘Transfer option on State Bank ATMs and avail of:
Card to Card Transfer
Send cash in a flash from one SBI Debit Card to the other. Using this free and
easy service, you can transfer up to Rs. 30,000/- per day instantly to your loved
ones. All you need is your SBI debit card, your pin and the beneficiary’s debit
card number. (Per transaction limit of Rs. 15,000/-).
44. 44
Credit Card Payment (Visa)
Use this service to pay the bill of any Visa credit card.
Use the ‘Services’ option on State Bank ATMs and avail of:
Credit Card Payment
Make a paperless payment of your SBI credit card bill.
SBI Life Premium Payment
Pay your SBI Life insurance premium payment using any of our ATMs.
Mobile Top-up
Talk non-stop and recharge your mobile prepaid connection from any of our
43000+ ATMs. A popular service amongst customers, it ensures you never run
out of time to catch up with your dear ones over the mobile network.
Cheque Book Request
Order your cheque book without visiting the branch or filling in any transaction
slips. Remember to update your registered address in the branch as the
cheque book will be delivered at the address registered in the branch.
Trust Donation
Make a donation to your favourite charity. For example, (a) Vaishno Devi (b)
Shirdi Saibaba (c) Gurudwara Takht Saheb, Nanded (d) Tirupati (e) Sri
Jagannath Temple, Puri (f) Palani, Tamil Nadu (g) Kanchi Kamakoti Petam,
Tamil Nadu (h) Ramakrishna Mission, Kolkata (i) Mantralaya, Andhra Pradesh
(j) Kashi Vishwanath, Banaras (k) Tulja Bhavani, Mumbai (l) Mahalakshmi,
Mumbai and many more.....
Bill payment
Use our ATMs to pay your utility bills viz. Bangalore/Hubli/Chamundeshwari
Electricity Supply Company, Karnataka and Chattisgarh State Electricity Board.
45. 45
Use the ‘Mobile Registration’ option on State Bank ATMs to:
Mobile Banking Registration
Register/Deregister your mobile banking application using our ATMs.
Inter-mobile Mobile Payment System
You can register for the IMPS service at all our ATMs. This service allows you
to transfer money to any other person with a registered IMPS number
instantly.
You can also create a Term Deposit using our ATMs. Just click the ‘TDR/STDR’
option:
Minimum amount of Rs. 10,000/- (valid in singly owned accounts only)
Overview
(i) With effect from 01.04.2011, all the new demat accounts and
Online Trading accounts will be opened in the books of SBI Cap
Securities Ltd.
(ii) The existing demat accounts in the books of the Bank will continue
to be maintained by the Bank.
Therefore, in new 3 in one facility, Savings/Current account will be held with
SBI while
Demat and Online Trading account will be held in the books of SBI Cap
Securities Ltd.
46. 46
However, existing demat customers of SBI will continue to get the services
from SBI as before. SBI is a Depository Participant registered with both
National Securities Depositories Limited (NSDL) and Central Depository
Services Limited (CDSL) and is operating its DP activity through more than 1000
branches. Our Power Demat Account offers you the following features:
Features & Benefits of a Demat Account
As opposed to the earlier form of dealing in physical certificates with delays in
transaction, holding and trading in Demat form has the following benefits:
Account Maintenance & Safe custody: Facilitates Maintaining Security
Balance in electronic form
Dematerialization: Facilitates converting physical share certificate into
electronic balances.
Rematerialization: Facilitates converting the electronic balances to
physical (share certificate) form.
Account Transfers: Facilitates delivery/receipt of electronic balances
consequent to market / off-market trades.
Pledge/Hypothecation: Facilitates blocking securities balance of
borrowers in favour of lenders for obtaining Loans / advances against
shares.
Initial Public offer: Facilitates faster and direct credit of security
balances into DP account on allotment through public issue of
companies
Disbursement of corporate benefits: Facilitates faster and direct credit
of security balance into DP account on account of non-monetary
corporate benefits as bonus and rights issues.
Security Lending: Facilitates earning extra income on your
dematerialized holdings by the way of securities lending.
47. 47
A Demat account with SBI provides you the following benefits:
Customer Care: You can now call our dedicated Customer Care 24X7 and
rest assured that all your queries are taken care of.
Transact Anywhere: Now operate your Demat account from any of the
1000 plus Demat enabled branches of SBI.
Statements by e-mail: Receive your account statement and bill by email.
Demat Services’ Online Facility – This convenientand paper free facility
lets you operate from the comfort of your home or office through SBI’s
Internet Banking Facility - www.onlinesbi.com
Online Demat Statements: You can now view your Demat account details,
statement of holdings, statement of transactions and statement of billing
online.
Order Delivery Instruction Booklet online: No queues at branches anymore as
you can now order your Delivery Instructions Booklet online and the same
would be delivered at your doorsteps.
Check ISINs, Settlement Calendar and Status of Requests online
eZ - Instructions: You can transfer or pledge/unpledge securities online
anyplace, anytime.
Mobile Alerts: Receive SMS alerts for all debits/credits as well as for any
request which cannot be processed.
eZ-trade@sbi: In case you want an Online Trading Facility, you can have it with
SBICap Securities Limited. This service provides you with a 3-in-1 account
which is an integrated platform of Savings Bank A/c, Demat A/c and Online
Trading A/c to give you a convenient and paper free trading experience.
48. 48
Research objectives
First and foremost objective is to find out the reasons for using of Advance
Product from SBI.
To find out the services that other bank gives to their customer.
To generate the leads through the survey.
To sort out the prospective leads from the data I have collected through the
survey.
To find out the customer awareness on booming Advance Product market and to
find out the using patterns of the people
To make the customer aware of the benefits of the product.
49. 49
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 100 people was taken into study, and their data was collected.
Sampling Technique:
To study the Project, a Simple Sampling technique is used.
50. 50
Data Collection:
Collection of data is done by Secondary Data & through Questionnaire
i.e., Primary data was collected through Questionnaire.
Data Analysis:
After data collection, I analyzed customer’s views, ideas and opinions related
to Advance Product and about SBI Advance Product and from this, SBI will
come to know the customer requirements.
Data Interpretation:
Interpretation of data is done by using statistical tool i.e Bar
graphs, and also using quantitative techniques (by using these
techniques) accurate information is obtained.
Classification & tabulation of data:
The data thus collected were classified according to the categories,
counting sheets & the summary tables were prepared. The
resultant tables were one dimensional, two dimensional.
Statistical tools used for analysis:
Out of the total respondents, the respondents who responded
logically were taken into account while going into statistical details
& analysis of data. The tools that have been used for analyzing
data & inference drawing are mainly statistical tools like
percentage, ranking, averages, etc.
51. 51
GRAPHICAL REPRESENTATION OF DATA
AND INTERPRETATIONS:
As per questionnaire and market surveys I have find out different responses from
different people. According to their responses I analyze the findings and draw certain
remarks.
QUESTIONNAIRE
Q1.In which bank , you have an account?
a) SBI
b) ICICI
c) HDFC
d) OTHER
PARTICULARS PERCENTAGE
SBI 60 %
ICICI 33 %
HDFC 5%
OTHER 2%
TOTAL NO. OF PEOPLE 100
52. 52
INTERPRETATIONS:
It has been observed that approximately 60% of 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 Bhilai. It also shows that SBI have the highest
market position in Bhubaneswar as per my sample.
60%
33%
5% 2%
0%
10%
20%
30%
40%
50%
60%
70%
SBI ICICI HDFC OTHER
RESPONSES OF PEOPLE IN %
% OF CUSTOMER RESPONSES
53. 53
Q2. Are you aware of products & services provided by SBI?
a) YES
b) NO
YES 85%
NO 15%
Total No. of People 100
INTREPRETATION:-
From the above data it is clear that most of the customers (around 85%) of
Bhubaneswar 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).
YES, 85%
NO, 15%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
YES NO
54. 54
Q3. If yes are you aware of the advance products (Loan segments) of SBI?
YES 95%
NO 5%
TOTAL NO. OF PEOPLE 100
INTREPRETATION:-
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.
95%
5%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
YES NO
% OF PEOPLE
% OF PEOPLE
55. 55
Q4. Which bank you prefer for taking loans?
SBI 62%
ICICI 12%
HDFC 2%
OTHER 24%
TOTAL NO. OF PEOPLE 100
INTREPRETATION:-
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.
62%
12%
2%
24%
0%
10%
20%
30%
40%
50%
60%
70%
SBI ICICI HDFC OTHER
Sales
Sales
56. 56
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.
Q.6 Which loan product of SBI you have used?
HOME LOAN 47%
EDUCATIONAL LOAN 20%
CAR LOAN 15%
PERSONAL LOAN 10%
OTHER 8%
TOTAL NO. OF PEOPLE 100
57. 57
INTREPRETATION:-
From the sample size 85% of people are using the SBI loan product. From the 1800
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. Some of the customer took 2 type
of loan from SBI like both car & educational loan and home & car loan. 10% of people
took personal loan.
Q7. What do you feel about the services providing by SBI in advance product?
Not satisfied 0%
Satisfactory 2%
Good 55%
Excellent 43%
TOTAL NO. OF PEOPLE 100
47%
20%
15%
10% 8%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
HOME LOAN EDUCATIONAL
LOAN
CAR LOAN PERSONAL
LOAN
OTHER
Sales
Sales
58. 58
INTREPRETATION
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.
0% 2%
55%
43%
0%
10%
20%
30%
40%
50%
60%
NOT SAISFIED SATISFACTORY GOOD EXCELLENT
CUSTOMER PERCEPTION TOWARDS THE SERVICE PROVIDE
BY SBI IN ADVANCE PRODUCT
CUSTOMER PERCEPTION
TOWARDS THE SERVICE
PROVIDE BY SBI IN
ADVANCE PRODUCT
59. 59
Q8. Which features you like most in Loan segments of SBI?
LESS PAPER WORK 3%
ATTRACTIVE INTEREST RATE 35%
TRANSPARENCY 20%
SIMPLE AND FAST PROCESSING 2%
LONGER REPAYMENT PERIOD 40%
TOTAL NO. OF PEOPLE 100
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
LESS PAPER WORK ATTRACTIVE
INTEREST RATE
TRANSPARENCY SIMPLE & FAST
PROCESSING
LONGER
REPAYMENT
PERIOD
FEATURES LIKE BY CUSTOMER
60. 60
INTREPRETATION
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.
PROJECT Findings:
From this project it is found that SBI advance product having the 1st place in the
market at Bhilai, 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
Bhubaneswar.
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 Bhilai 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.
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REASONS FOR HIGHLY USE OF SBI ADVANCE PRODUCT:
LESS PAPER WORK
ATTRACTIVE INTEREST RATES
TRANSPARENCY
SIMPLE & FAST PROCESSING
LONGER REPAYMENT PERIOD
QUICK PROCESSING
Suggestion & Recommendation
Recommendation:
Customer awareness programme 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.
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The bank should increase the period for repayment of loan.
SBI should more focus on Retaining existing customers.
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 programme should be taking place in rural area.
Conclusion
From the analysis part it can be conclude that customers have a good respond towards
SBI advance products in Bhilai. 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.
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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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Questionnaire
Name - _____________________________________
Occupation-__________________________________
Contact Detail -_______________________________
Q. On which bank you depend for your regular transaction?
a) SBI
b) ICICI Bank
c) HDFC Bank
d) Other Bank, Specify (_____________)
Q. Are you aware of products & services provided by SBI?
a) YES
b) NO
Q. If yes are you aware of the advance products (Loan segments) of SBI?
a) YES
b) NO
Q. Which bank you prefer for taking loans?
a) SBI
b) ICICI Bank
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c) HDFC Bank
d) Other Bank, Specify (_____________)
Q. If you prefer SBI for taking loan than what influence you to take Loan from SBI?
_____________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
__________________________________________________________________________.
Q. Which loan product of SBI you have used?
a) Home Loan
b) Education Loan
c) Car Loan
d) Personal Loan
e) Other Loans, Specify ( ______________ )
Q. What do you feel about the services providing by SBI in advance product?
a) Bad
b) Satisfactory
c) Good
d) Excellent
Q. Which features you like 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
h) Any other feature, specify ( _____________ )
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Q. Any suggestion you want to give for the betterment of SBI advance product.
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
__________________________________________________________________________.
Bibliography:
Internet:
www.google.co.in
www.sbi.com
www.slideshare.net
WWW.WIKIPEDIA.COM
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