INTRODUCTION

Today every bank is concentrating to improve the services as much as

possible. Competition among banks has been increased to provide better
services to the customers. So, every bank has been trying to create the
awareness of their Products and services in minds of customers to
capture the major market share.
Banking sector can be broadly divided into to two types.
1. Personal banking division .
2. Development banking division.
Personal banking division consists of about 18 products and
development banking division consists of about 25 products . In personal
banking division the most popular products are housing loan and educational
loan.
Home is necessary for every one. We know this better than the most the toil and sweat that goes into building / buying a house and subsequent pride
and joy of owning one . This is why housing loan schemes are designing to
make it simple for customer to make a choice at least as far as buying goes.
Educational loans are specifically offered for the pursuit of
academics in recognized schools, colleges , and various other educational
institutions both in India and abroad .
Repayment period in both housing and educational loans are more
flexible in the market. Depending on the customer capacity to repay,
customer could payback the loan in easy installments . Customers may
prepay at will without attracting any penalty , or pay loan or pay more
than customer stipulated monthly installments at any times.
NEED FOR THE STUDY
Personal banking division has been adopting a major role in banking .
It consists of number of products that are very useful to each and every
customer . Today every bank is facing their toughest competition ever. In
personal banking division housing loans and educational loans are two
products which are attracting number of customers to take the loans .
For every bank, product is not only the key player but also the
customer plays a key role meeting the customer need and their expectations
make the customer loyal. This competition has been increased more from
the year 1996. Many banks had entered in the competition , this
competition becomes tough to many banks and enforced them to decline
stage. Many banks which are providing a better quality products had also
failed to reach the customers expectations towards the company. Later, many
banks used their marketing philosophy and made customer has the center
key.
Getting a new customer is difficult than retaining a customer is
more difficult one and not only it is estimated that the cost of attracting a
new customer his 5 times the cost of retaining current customer . It requires
a great deal of effort to induce satisfied customer to switch away from their

current preference . thus, customer satisfaction has been given top priority in
todays competitive world.
The reasons which are given below are responsible to take up
CUSTOMER SATISFACTION as the subject of the study .
To understand the importance and significance of S.B.I.
By analyzing various factors, customer satisfaction level can be
understood.
To assert the management of SBI with some suggestion.

OBJECTIVES OF THE STUDY

To find out the satisfaction with housing loans and education

loans in ANANTAPUR.
To study the opinion of customers on interest rates on housing
loans and educations.
To probe into the problems faced by the customers in housing
loans and education loans.
To know the competition from other banks.
To know customers opinion on SBI service.

METHODOLOGY
1. RESEARCH METHODOLOGY:
Research methodology is a systematic way of collecting and analyzing
data in a specific topic.
2. SAMPLING SIZE:
Sample size of customers in housing loan is 86.
Sample size of customers in education loan is 44.
3. RESEARCH DESIGN:
A research is a specification of methods and procedures for acquiring the information needed to
structure to solve the problem.

4. SAMPLING PLAN:
The first thing that a sample plan includes is the sample size to be investigated. The number of
customers in Anantapur town is taken as 86 customers in housing loan and 44 customers in education
loan for sample size.
5. SAMPLING UNIT:
Sampling unit is a combination of middle and upper middle class segments.
6. SAMPLING TYPE:
Type of sampling chosen is Stratified sampling as the population is divided into difference
segments on the basis of certain common characters and then selection of items randomly from then to
constitute a sample.
7. RESEARCH TOOL:
Direct method of research is followed for the purpose of the study. All the customers are approach
personally and individually with a structured questionnaire.
8. CONTACT METHOD:
Each unit number of sample respondent to questionnaire they have been individually is requested to
give the information and other suggestions by filling up the questionnaire personally.
9. RESEARCH ANALYSIS:
Various statistical tools like percentages, average pie charts, bar charts etc. are used. The information
gathered is pictured into tabular forms so that interpretation would be precise.
10. DATA COLLECTION:
Data is primary and secondary.
a. Primary Interviews:
The data collected through interview of customers through questionnaire method
b. Secondary Data:
The information that already exists is secondary data. It is collected from company records
such as journals, books and other profiles.
LIMITATIONS OF THE STUDY:

The survey has been restricted to Anantapur only.

Time is main constraint for the study.
Some customers did not respond properly.
The information supplied by the customers could be subjected to bias.
The relevant useful information given within a time, since the allotted time was not sufficient,
could not be possible to collect more information which is needed for the study.

BANKING INDUSTRY
ECONOMIC BACKDROP AND BANKING
ENVIRONMENT
The Indian economy experienced mixed trend during the year 20012002. Overall GDP growth has been placed at 5.4% against the raise of 4.0%
in 2000-01, driven largely by good performance of the agricultural sector.
Growth in the services sector at 6.2% was also higher than 5.0% in 2000-01,
mainly on account of increase in trade and transport, finance and business
services. Foreign exchange reserves a recorded a robust growth of us $ 11.8
billion-the highest increase in a single year from us $ 42.3 billion in end
march 2001 to us $ 54.1 billion by end march 2002 , due to moderation in
trade deficit and strong capital inflows.
On the monetary front , liquidity conditions remained easy. During
2001-2002, the year on year growth in money supply at 14.0% was in line with
the growth projected by RBI, as against 16.8% in 2000-01, when growth was

boosted by India millennium deposit inflows. For the same reason growth in
aggregate deposits of all scheduled commercials banks at 14.3% was lower than
18.4% during 2000-01. During same period , the increase in total flow of
funds from banks including banks investment in bonds , debentures, shares,
CPS, at 11.87% was also lower than the increase of 15.7% during 2000-01.
In the scenario, the overall stance of RBIs monetary policy during
2001-02 was provision of adequate liquidity to support credit growth with a
bias towards soft interest a rate regime .Reduction in the bank rate and cash
reserve ratio was announced in October 2001 and measures to increase
flexibility in deposit and lending rates were also introduced . During the year,
banking sector reforms continued to emphasize steps to secure the soundness
and stability of banks including improving asset quality, strengthening
prudential norms , streamlining credit delivery and in general, making the
Indian banking system comparable to international standards.
Liberalization and deregulation have heightened competition among
banks , which will only intensify with financial liberalization under the WTO
regime , and banks in India will have to bench mark themselves against world
calss banks . In this context, the way to boost profitability and stay ahead is by
developing sophisticated and customized product, increasing volumes,
monitoring risks and reaching out to customer in diversified and distant
markets by leveraging technology. In line with this, the banks are also making
all out Efforts to adopt safe of the art technology with afar reaching
consequences for efficiency and profitability.
BANKING SYSTEM IN INDIA
Sec 5(1)(b) of the banking regulation act defines banking as the
accepting of money of the purpose of lending or investment from the public
repayable on demand or otherwise and withdrawal by cheques ,drafts order or
otherwise.
Sec 5(1)(b) of banking Regulation act , specifies other forms of
business which banking company may carry on in addition to banking . They
are:
Borrowing and lending .
Drawing, collecting & dealing with negotiable instruments.
Issuing letter of credit .
Dealing in foreign exchange .
Contracting, issuing, underwriting an otherwise dealing in government,
public and private loans shares, stock, debentures and
other securities and investments.
Providing safe custody of articles and safe deposit vaults.
Doing agency business.
Giving indemnities and guarantees.

Dealing with properties.

Doing executor and trustee business.
Any other business that may be specified by central government as
lawful, ancillary services, issuing credit cards, T.Cs and L.Cs. After
independence the imperial bank of INDIA was nationalized with a new name
State Bank Of India by passing State Bank Of India act 1955.The reserve bank
of India as a central bank was nationalized in the year 1935 by an act the
reserve bank of India act passed in the parliament. Several new banks as Punjab
national banks, Bank of Baroda, Canara Bank, Indian Bank, Bank of India etc.,
were established after independence. On July 19,1969 14 major banks were
nationalized. Later on mare banks were nationalized at present the no of
nationalized banks are 20.Several foreign banks were allowed to operate as per
the guidelines of RBI. At present the banking system can be classified in
following categories:
PUBLIC SECTOR BANKS
Reserve Bank Of India
State Bank Of India and its 7 associate banks
Nationalized banks(20 in number)
Regional rural banks sponsored by public sector banks
PRIVATE SECTOR BANK
Old generation private banks
New generation banks
Foreign banks of India
Scheduled co-operative banks
Non scheduled banks
CO-OPERATIVE SECTOR BANKS
State co-operative banks
Central co-operative banks
Primary agricultural credit societies
Land development banks
Urban co-operative banks
State land development banks
DEVELOPMENT BANKS
Industrial finance corporation of India (IFCI)
Industrial development bank of India (IDBI)
Industrial credit and investment corporation of India (ICICI)
Industrial investment bank of India (IIBI)
Small industries development bank India (SIDBI)
National bank of agricultural and rural development (NABARD)
Export- import bank of India
All the types of banks have centralized control RBI.

STATE BANK OF INDIA GROP

The all India rural credit survey committee had recommended the setting up of
a bank with state partnership to promote economic development and in
particular rural development. The recommendation was implemented by an act
of parliament in 1955 when the state bank of India was formed. It took over the
imperial bank, which was formed in 1921 by merger of three presidency bank
of Bombay, bank of Bengal and bank of madras. The state bank of India act
stipulated that the RBI should have a minimum share holding of 55% in SBI.
RBI, the majority share holder has considerable authority for supervision and
operational control. The 98% equity holding of RBI was diluted to 60% in
November 93 when SBI raised Rs20.3bn by a public and rights offering of its
equity shares. The management of the bank vests in the central government and
other directors. The SBI has done considerable decentralization of the
operational activities in 13 regions (regions are organized under zonal offices)
and with local head offices.
The objectives of the act of state bank of India are the extension of
banking facilities in large scale, more particularly in the rural and semi- urban
areas and for diverse other purpose. In 1955, another state bank of India
(subsidiary bank ) act was passed and the following bank s were made
subsidiaries of the state bank of India.

A.) Seven associate banks

_
_
_
_
_
_
_

State bank of Hyderabad

State bank of Indore
State bank of Mysoure
State bank of Papiala
State bank of Saurashtra
State bank of Travancore
State bank of Bikaner and Jaipur

B) One wholly owned banking subsidiary

_ SBI commercial and international bank
C) Seven non banking subsidiaries
_ SBI capital markets merchant banking, lease and hire purchase
_ SBI funds management mutual fund
_ SBI gifts govt. securities
_SBI factors & comm..serv.factoring services
_ SBI securities investment banking
_SBI cards and payment services Ltd
_ SBI life insurance company Ltd
D) Six overseas subsidiaries/joint ventures
_ SBI (Canada)
_ SBI (California)
_ SBI international (Mauritius) Ltd
_ Indo-Nigerian merchant bank Ltd
_SBI finance insurance new York

_ SBI services limited, sau Pauylo

_SBI life insurance company Ltd
SINGLE WINDOW SYSTEM
SINGLE WINDOW SYSTEM is a system of delivery of all the
services offered by the bank at a single window / counter. The Single
Window Concept envisages that all the needs of the customer are
taken care of at a single counter, as compared to the earlier system
where the customer have to approach different product specific
counters for completion of their work. The System is being
introduced by SBI in all its fully computerized branches where the
single window software is loaded. Specimen signatures of all the
customers and also officers are scanned and loaded on to the system
at the branch. Customers can approach single Window counter for
cash and transfer transactions irrespective of amount. The Single
Window Operator (SWO) will post the transactions on the computer.
He will pass the instruments, which are within his passing / signing
powers, authorize those transactions and complete the transactions at
his counter.
If the amount is beyond his powers, he shall refer the entry along
with the vouchers, to the authorized official after posing it in the
computer, who in turn will authorize the transaction if otherwise in
order. After the transaction is passed by the authorized official, the
SWO will complete the transaction at his counter. The powers of
WSO are : a) Granting of cash receipts on Bank/Govt. A/cs up to
and inclusive of Rs.10,000; b) passing of cheques and other debits to
customer A/cs, drafts, Govt. payment for amounts up to and
including Rs.15,000 in transfer transactions.
SWADHAN (SHARED PAYMENT NETWORK SYSTEM)
SWADHAN is a system implemented by IBA, for providing
state-of-art ATMs and related serviced, by signing an agreement with
a consortium led by HMA Database System. It is a large network of
ATM/cash dispensers of a number of banks, connected to a Central
hub. Over 56 banks are in the network and more than 1000 ATMS
are Swadhan enabled, connecting over 67 cities to provide 24 hours
service to about 2.6million Swadhan enabled cardholders. Wsadhan,
developed by Indian Company, has been successfully running for the
past 5years. Currently, there is backbone of 200 ATM machines with
HMA group which owns India Switch Company. SBI has joined the
SWADHAN to provide Anywhere anytime Banking.
BANKING OMBUDSMAN

BANKING OMBUDSMAN is an independent, full-time quasi

judicial functionary appointed by RBI to provide fair, speedy and
inexpensive resolution to customer complaints. When a customers
grievance is not resolved to his satisfaction by a bank within 1 month
of his lodging a complaint, he can make a complaint (not later than
1year after the above complaint) to the Banking Ombudsman of the
area who would try to promote settlement through agreement
between the parties. If the complaint is not settled by agreement
within 1 month, the Ombudsman, after giving reasonable opportunity
to parties to present their case, shall pass an Award up to a maximum
of Rs.10 lakhs which if accepted by the complainant would be binding
on the bank. The Banking Ombudsman Scheme was formulated by
RBI in 1995 under section 35A of the Banking Regulation Act, 1949
and is applicable to all Bank (including Foreign Banks) in India.
CLEAN NOTE POLICY
RBI has adopted a Clean Note Policy since 1999 towards
improving the quality of currency notes in circulation. In order to
maintain the quality of growing volume of notes in circulation, as a
long term measure, mechanization of the note processing and
destruction activity had been taken up at all Issue offices of RBI. As
this requires notes in an unstapled condition, RBI had directed banks
to do away with stapling of fresh/ re-issuable/non issuable note
packets, and secure note packets with paper bands etc. Banks must
issue currency notes to the public only in an unstapled condition and
must also request the public to tender cash to bank only in unstapled
condition., The note packets will be secured by a twine, vertically and
horizontally. The existing stapled notes(issuable) are to be destapled
in a phased manner on urgent basis. To facilitate bundling of notepackets bundling machines will be provided to branches. Desk Top
counting machines (with double display screens) should also be made
available at branches for internal use as well as for the use of
customers. Banks shall sort out notes to issuable and non-issuable,
and issue only clean notes to the public. Banks shall tender soiled in
unstapled condition only, to RBI through currency chests.
STATE BANK OF INDIA LTD

ORGANIGATIONAL PROFILE

The state bank of India is the largest commercial bank in India in terms of
profits, assets, deposits, branches and employees.
BUSINESS
SBI, a public sector bank, is the dominant leader of the banking sector. its
network of 8,998 branches of its own and 4446 branches of its subsidiaries is the
largest in the world. STAT has always been the leader in providing working
capital loans to trade and industry. Interest income accounts for more than 86%
of SBI total income.

In the personal finance the bank covers a broad spectrum including auto,
computer, personal and educational loans. The personal financing portfolio
registered and impressive growth of 30% during FY01.
The bank forayed into the insurance business in FY01 with its subsidiary SBI
life insurance. It is a joint venture with SBI holding 74% and balance 26% by
card if S.A; the joint venture partner. SBI is the only bank that has been
permitted a 74% stake in the insurance business.
DEPOSITS
SBI is the largest deposit-taking bank in India, holding approximately onefifth of all domestic deposits. Approximately three-fourth of the bank's deposits
is from its retail customers, reflecting its large customer base. about 14% of its
domestic deposits are in the form of interest free current accounts and about
25%are in the form of low interest savings accounts.
SBI has been facing increasing competition in mobilizing deposits from
financial institutions and private sector banks.
ADVANCES
The bank's retail banking activities are wide spread and cover, among others,
housing finance, consumer finance and education loan. Approximately 52% of
its loans are made to borrowers in the commercial and institutional sector, many
of which are considered India's "blue chip" companies.
Priority sector advances as a percentage to total advances stood at 26%,
however the advances to the agricultural sector as a percentage of net banking
credit (NBC) stood at of its advances are secured by tangible assets and
government guarantees.
CREDIT INFORMATION BUREAU
The bank has entered into a MOU with HDFC bank, the dun and Bradstreet
and the trans union for setting up a world class credit information bureau in
India. The main objective of the bureau will be to institute an effective
mechanism for mitigating credit risks and enhance the quality of credit decisions
in the banking industry.
NON FUND BASED ACTIVITIES
Commission, exchange, brokerage income constitute a major chunk of SBI
total income. SBI client include PSU and large corporate from whom it
generates significant fee income. SBI also handles the treasury operations of the
govt. For which it gets commissions. Other sources of non-fund income include
commissions on money transfers from retail customers, capital gains on
securities and commission on foreign exchange activities.
FUTURE PLANS
For the forth coming financial year, SBI is expected to give an increased
thrust on its traditional businesses especially, its retail business. SBI will also bib
to realize its group synergy by cross-selling its range of products through its
various subsidiaries. It is also planning to tie up with NBFC for truck finance.
Housing finance, insurance and infrastructure will be the primary area of
importance to the bank for the coming financial year.

We understand that every business requires a transparent and efficient

banking services support to meet its day to day financial requirements. SBI thus offers to serve
your financial requirements giving you maximum financial leverage for your money and saving
on your time and cost. While we take care of your financial needs, you take care of your
customer. Keeping the value of your time and money in mind, our SBI Current Account is
designed to give you the very best of services.
Benefits of SBI Current Account Card Convenience
Get your Free ATM cum/Debit Card and get access to the widest network of over 2800 ATMs
across the country to withdraw cash, enquire about your balance etc. You can also avail of our
International Debit Card which can be used domestically as well as outside India Easy and Wide
Accessibility of Money
Transact at your convenience, saving time and cost through the largest distribution network in
India of more than 2800 SBI ATMs . or through SBI Internet Banking .
You can now also withdraw cash from our Maestro endorsed ATMs and ATMs of HDFC Bank /UTI
Bank for which some fee is payable. Monitoring Your Account
Monitor and control your savings through SBI Internet Banking or SBI Passbook facility
Alternatively, access your account by downloading instantsbi.com on your computer. Sweep-In
Account
Now for immediate cash requirements transfer funds from your Fixed Deposits to your Current
Account whenever needed. For more details refer to SBI Multi Options Deposit Transaction
Ease Unlimited credits allowed in all your accounts Unlimited number of payments
You can also enjoy the security of a check payment guarantee, should your balance in the
account be insufficient for the payment of a cheque, through a pre-arranged limit Make
payments by giving us standing instructions
Order Demand Drafts and Payorders on over 9000 locations Transfer funds from any part of the
country Upcountry Cheque Collection Free Cheque book of 50 leaves every year
Facility of a safe deposit locker for the safety of your important documents and valuables
Efficient Foreign Exchange Services Money Multipliers
Link your Current Account to your Deposit Account and earn additional interest on your surplus
money. Also get rid of the problem of bounced cheques forever. All this and more through SBI
MOD Other Benefits
Free Account Transfer between our wide network of branches Nomination Facility available
Facility to open your Current Account in Single or Joint Names Very Low Minimum Balance
Requirements Full Security of your money at all times
Welcome to SBI's Retail Banking
Whatever your needs- an investment for your surplus funds or a loan- you will find a product just
right for you, delivered at a branch very close to you.
Open an account with any of our branches, over 2500 of which are fully computerised, and
realise the advantage of our vast network. Earn high interest on fixed deposits, putting your
money to work for you with confidence and security. Place funds in SBI MODS, a fixed deposit
which is not fixed at all - with a unique break up facility which permits you full liquidity with the
assurance of the highest rates of returns, merely by issuing a cheque on your savings bank
account. Alternately, keep your SBIMODS intact and with an automatic overdraft facility, enjoy
high returns with the comfort of assured cheque payments.
Want to build up savings slowly? Discover our Recurring Deposit Accounts. You choose the
amount you would like to save per month (and this can be kept variable too) and you choose the
period to suit your financial goals.
Need a loan to buy your dream flat or house, a car, finance to see your children through college
or just to take your family to a well-deserved holiday? We will give it to you easily and speedily.
Whatever your dream, we have a scheme to help you fulfill it.

Our products are designed with flexibility to suit your personal requirements. Enjoy 24 hour
facility through our ATMs - growing speedily to touch the 1000 mark by March 2002. Watch this
space for more details.
Experience a whole new world of banking at our newly opened Personal Banking Branches
(PBBs)- often dubbed boutique branches by others. Customer friendly knowledgeable staff will
cater to your financial requirements with speed and efficiency. Do visit one and find out for
yourself.

VARIOUS SCHEMES OF SBI

_Housing loans to Public, staff &NRI'S
_ SBI Educational Loan
_ Loans for purchase of consumer durables
_ Car loan scheme
_ Personal loans scheme
_ Advances against Gold/Silver ornaments
_ Medicaid Scheme
_ Advances against Time Deposits
_ Cash key scheme
_ Advances against National Savings Certificates
_ Advances against Kisan Vikas Patra
_ Advances against Public Sector Bonds
_ Advances against units of Unit Trust of India
_ Advances against Life Insurance Policies
_ Loans for purchase of Personal Computer and Home Computer
_ Loans to industrial worker for purchase of Bicycles
_ Special Rural Housing Schemes
_ Scheme for loans to Employees to buy share of their companies
_ Doctor plus, Teacher plus, etc.
DETAILS OF HOUSING LOAN
Enjoy the SBI Advantage:
Excellent service and lower costs. A quick survey of similar schemes available elsewhere and
you will find that SBI housing loans offer you the
Low Equated Monthly Instalments (EMI)
Low interest rates, currently between 8% p.a. and 9.5% p.a. on daily reducing balances
A nominal processing fee of 0.25% will be charged.(Compare this with the 1.5% - 2%
charged by others)
No hidden costs or administrative costs
No prepayment penalties. Should you have surplus funds, you may conveniently reduce
your loan liability and interest burden. Compare with penalties of up to 2% charged by
others
In-principle approval given prior to your identifying a house /flat, giving you flexibility in
choice.
Complete transparency - When we say our rate of interest is 8% p.a. you pay only 8%.
When others say 7.5%, you may be paying even 9% p.a., as interest may be levied even
on the amounts you have already repaid. This is because we apply interest on a daily
reducing balance while housing finance companies/ other banks mostly apply interest on
annual reducing balance. On an annual reducing balance, the interest for the full year is
decided on the balance outstanding at the beginning of the year and thus you continue to
pay interest even on the amounts you repay monthly during the year.

Always compare the Equated Monthly Instalments (EMI), Processing Charges, Annual
administrative charges prepayment penalties and the total repayments you would be required to
make rather than rates of interest.
The Scheme

Purpose
You can take a loan for:
* Purchase or construction of a new house/ flat.
* Purchase an existing (old) house/ flat.
* Extend, repair, renovate or alter a house/ flat.
* Purchase a plot of land meant for construction of a dwelling unit.
Eligibility
Anyone who is over 21 years of age and has a steady source of income is eligible.
Salient Features
Loan amount
The actual loan amount is determined on the basis of repayment capacity taking into account
your income, age, assets and liabilities. As a rule of thumb - Upto 60 times the net monthly
income will be sanctioned depending upon your age. Usually, spouse's income and the expected
rental would also be taken into account.
Documents Required
You will need to furnish the following documents along with the completed application form:
Passport size photograph
Proof of residence
(This applies only to new or non-bank customers, and could be either a PAN identity
card, voter identification card or passport)
Sale Deed/ Agreement of Sale
Bank account Statement or passbook, for the last six months
For employees or people in service, you also need to provide:
Salary certificate and other information, if any, about your repayment capacity
Form 16 or a copy of the Income Tax Returns for the last 2 years
For self employed and other IT assessees:
IT returns for the last 3 years Receipts of advance tax paid
Any other information about your repayment capacity
In addition to the above mandatory documents, you are also required to furnish one or
more of the following documents wherever applicable:
Letter of allotment from the housing board or society
Copy of the approved plan
Permission for construction
Copy of the relative order in the case of conversion of agricultural land. (not
required where the house/flat has been constructed by an approved builder)
Additional documents required for an old house/flat :
In the case of an old existing house, you will need to get a valuation certificate from approved
valuers as well as a certificate from a government approved architect /structural engineer
regarding the condition of the flat/house as well as its remaining life.

Margin i.e., your contribution

15% for new house/ flat

20% for old house/ flat
20% for repairs and renovation

Repayment
Our repayment terms are amongst the most flexible in the market. Depending on your age and
capacity to repay, you could pay back the loan in easy installments spread over 20 years. You
may prepay at will without attracting any penalty, or pay more than your stipulated monthly
installment at any time, depending upon availability of funds with you. This would enable you to
pay off your loan faster and reduce your interest burden. However, in case of takeover of loan by
other banks/finance companies, prepayment penalty of 2% may be levied.

Processing Fee : 0.25 % of the Loan amount

Takeover of loan
If you have already taken a housing loan from any other bank/financial institution and wish to
benefit from our low rates of interest, we can take over your existing loan.

In-principle approval
We also give in-principle approvals based on your income and capacity to repay, to enable you
to identify a house/ flat with full confidence.
All loans are at the sole discretion of the Bank.

DETAILS OF EDUCATIONAL LOAN

Education is the most powerful weapon, which you can use to change the world." ~ Nelson
Mandela Considering an Ivy League University in the United States for your daughter or a
prestigious Indian Institute for your son but plagued by the monetary implications? Well, worry
no more: 4000 branches of our bank, spread across the country, (including Personal Banking
Branches) are geared to offer you our extremely flexible Education Loan Scheme, which allows
long term loans for all kinds of courses (including part-time and correspondence), offered by
recognized schools, colleges and institutions, the world over! Enjoy the SBI advantage :
The lowest interest rates - currently between 10.5% p.a. and 11.5% p.a. - Simple
Interest, during the moratorium period
No processing charges

Long repayment periods of 5-7 years, commencing a year after the course period or six
months after obtaining a job, whichever happens earlier
No hidden costs or administrative charges
No prepayment penalties
The Scheme
These loans are specifically offered for the pursuit of academics in recognized schools, colleges
and various other educational institutions, both in India and abroad. You may avail of this loan
facility to meet:
Fees payable to college/school/hostel
Examination/Library/Laboratory fees
Purchase of Books/Equipment/Instruments/Uniforms
Caution Deposit/Building Fund/Refundable Deposit
Travel Expenses/Passage money for studies abroad
Purchase of computers considered necessary for completion of course
Purpose
You can take a loan for pursuing studies in recognised schools/colleges/ institutions to meet:
* Tuition and other fees
* Maintenance costs, books & equipments,etc.
* Cost of passage (for studies abroad)
* Caution fund/building fund/refundable deposit

Eligibility
Any student who is an Indian national and
Has secured admission to a professional or a technical course through an Entrance Test
or any other Selection process or
Has secured admission to a foreign University or Institution
is eligible for this scheme.
Salient Features
Loan Amount
The loan amounts financed are need-based and subject to the conceerned parents and/ or
students repaying capacity and the following ceilings:
Education in India : A Maximum of Rs.7.50 lacs
Education Abroad : A Maximum of Rs.15.0 lacs
Documents Required
Please refer to the comprehensive list below, to ensure that you don't leave anything out at the
time of submitting your completed Education Loan Application Form.
The mark sheets of your last qualifying examinations for school and graduate studies in
India
The proof of admission scholarship, freeship, studentship etc.
The Schedule of expenses for the specified course
The copies of letters confirming scholarships, etc.
The copies of foreign exchange permits, if applicable
2 passport size photographs
The borrower's Bank account statement for the last six months
Income tax assessment order, not more than 2 years old
A brief statement of assets and liabilities, of the borrower

Proof of Income (i.e Salary slips/ Forms 16 etc)

Margin
For loans up to Rs.4.0 lacs : No Margin
For loans above Rs.4.0 lacs: The Margins are as under:
In the case of Education in India, the margin is 5%
In the case of Education Abroad, the margin is 15%
Repayment of loan
Our Bank offers a Repayment Holiday for the duration of the course period PLUS one year or six
months after getting a job - whichever is earlier.
The loan then needs to be repaid in 5-7 years after the commencement of repayment.
Security
As per bank's extant instructions. Simple Interest during moratium
period.Concessions in interest rate during moratorium for servicing of
interest.

FINANCIAL PERFORMANCE OF SBI

PROFIT
The operating profit of the bank for 2001-02 stood at Rs.6,044.83 crore as
compared to Rs.3,966.78 crore in 2000-01, recording a growth of 52.39%. the
bank has posted a net profit of Rs.2,431.62 crore for 2001-02 as compared to
Rs.1604.25 crore in 2000-01, registering a growth of 51.57%.
DIVIDEND
The bank has declared, subject to RBI approval, a dividend at the rate of 60%
hfor the year, up from 50% decalred in the previous year.
NET INTEREST INCOME
The bet interest income of the bank registered a growth of 8.33%, from
Rs.8,382.58 crore in 2000-01 to Rs.9,081.24 crore in 2001-02. This was driven
by volume growth. The net interest margin went down from 3.23% in 2001-01to
2.91% in 2001-02.
The gross interest income from the global operations grew from Rs.26138.
60crore in 2000-01 to Rs.29,810.09 crore in 2001-02. The substantial growth
was contributed by increase in the interest on resources deployed in treasury
operations.
NON-INTEREST INCOME
Non-interest income grew by 7.51%, from Rs.3,883.04 crore in 2000-01 to
Rs.4,174.48 crore in 2001-02. The growth was contributed mainly by growth in
forex income and commission / exchange income.
OPERATING EXPENSES
There was a decline of 14.29% in the staff cost from Rs. 6,011.65 crore in
2000-01 to Rs. 5,152.78 crore in 2001-02. The staff cost of 2000-01 and 200102 included VRS expenses amounting to Rs.853.19 crore and Rs.354.51 crore,

respectively. After factoring out the VRS related expenses in both the years, the
staff cost of 2001-02 as still recorded as decline of 6.98% from the 2000-01.
PROVISIONS AND CONTINGENCIES

Major amount of provisions made in 2001-02 were as under

Rs.2,153.10 crore for non-performing assets (as against Rs.1,432.53
crore in 2000-01). In addition, prudential has also been made for
moving towards 90 days delinquency norm.
provisions for income tax amounted to Rs.1,603.02 crore (as against
Rs.971 crore in 2000-01)
A deferred tax credit of Rs. 335.05 crore has been reckoned while
arriving at the profit for current year.
Rs.18.04 crore towards standard assets(as against Rs.37.95 crore in
2000-01). including this amount, the total provision hold standard
assets amount to Rs.285.31 crore.
Rs.176.89 crore towards provision for depreciation on investment in
India, including amortization of premium on 'held to maturity'
category(as against write back of Rs.140.09 crore in 2000-01).
ASSETS

The total assets of the bank increased by 10.03% from Rs.3,15,644 crore
at the end of march 2001 to Rs. 3,48,228 crore as at the end of march 2002.
During the period, the loan portfolio increased by 6.33% from Rs.1,13,590 crore
to Rs.1,20,806 crores increased by 18.1% from Rs.1,22,876 crore to Rs.1,45,145
crore. A major portion of the investment was in the domestic market in
government and other approved securities. The banks market share in domestic
advances was 19%.
LIABILITIES
The bank's aggregate liabilities (excluding capital and results) rose by
10.2% from Rs.3,02,183 crore as at march 2001 to Rs.3,33,004 crore at march
2002. The in liabilities was mainly contributed by increase in deposits.
TREASURY OPERATIONS
Treasury operations in the bank have emerged as a major source of
income. During the year, the bank's domestic investment grew by Rs.21,557
crore to Rs.1,40,473 crore. The income from treasury operations was Rs.16,895
crore, registrating a growth of 32%.
FINANCIAL ANALYSIS OF SBI LTD
Large commercial banks like SBI are a microcosm of the entire economy.
Under the VRS, nearly 21,000 employs, almost 10% of the work force, were
retrenched that result in an outgo of Rs.8,532 mm. The rest Rs.14,180 mm is to
be amortized over a period of 4 years. Further Rs. 4,432 mm was charged to the
P&L account due to write-off the entire IMD issue cost. Thus operating expenses
grew by 31.8% in FY01as opposed to the growth rate of 7% in FY00, in turn
affecting net profit which was lower by 22%.
Net intrest income registered a growth of 19.04%, from Rs. 69,283.5mm
in FY00 to Rs.82,477.9 mm in FY01. This was due to a substantial growth in
both intrest income on advances as well as on resources operation.

Intrest expenses on deposits recorded an increase of 11.16% compared to

the previous year, where as the average level of deposits grew by 14.65%.
Growth in deposits were contributed by way of the bank's IMD programme. The
IMD programme was aimed at raising long term resources for augmenting the
countries forex reserves and for meeting the financial needs of the infrastructure
projects.
Cost of deposits witnessed a reduction from 7.86 % in FY00 to 7.62% in
FY01. This indicates that the bank could obtain funds at lower cost and this was
in a position to earn better operating profits in previous year. Other income grew
by 12.56% in FY 01 as compared to 8.66% in FY00. The return on assets
registered a low of 0.5 % in FY01 as compared to 0.8% in FY00. The banks
efficiency measured a ratio of operating expenses to total income has increased
to 67.66% in FY01 as compared to 60% in FY00.
The bank has made a huge provisioning of Rs.1,432.53 crore for nonperforming assets. Its gross in NPA's are high at 12.9%, compared to newer year
banks like HDFC or ICICI banks whose NPA's are less than 1% and 7%
respectively. The decision to go in for prudent accounting policy has enabled the
bank to increase its capital adequacy ratio to 12.8% from 11.5% in previous year.
The business per employee has gone up from Rs 11.1 mn in 1999-2000 to
13.7 mn in 2000-01. This is mainly due to the reduction of the work force
through VRS. The profit per employee has been maintained at the same level.
Increase of SBI the yield on investments has reduced from 10.6% in FY99
to 9.1% in FY01.Generally ,yield increases with the increase in the risk
perception of the assets. Thus a low yield indicates the bank has invested in less
risky assets, The business per employee of SBI at Rs13.7mn is less compared to
that of HDFC's and ICICI's Rs64.3mn and Rs81.5mn respectively . Same is the
case with return on networth (SBI-11.9%,HDFC-23%,icici-12.3%).This shows
that SBI still has a long way to go-to meet standard of private banks.
RECENT DEVELOPMENT OF SBI
SBI-TELE-BANKING FACILITY Tele banking facility is provided at
important branches of SBI in the context of growing diversity in range and
sophistication in banking services to customer. To facilitate identification of
customers and maintain confidentially, account holder is provided with a
personal code word for us during transaction over telephone with branches
concerned. The customer is to execute an undertaking against misuse of the code
word by other individuals. Individuals having a minimum balance of
Rs10,000/in SBI/C/TDR/a/cs, are eligible in a/c ,b) Fate of cheques sent for
collection, c)Bank's schemes d)Transfer of funds between a/c s of the same
customer at any place, etc
SBI INTERNET BANKING
SBI-INTERNET BANKING Introduced in selected computerized branches
.
ELIGIBILITY:
P Segment & Corporate customers for enquiry. only p segment customers
(single operated or joint a/c s, with E or S facility)for transactions.
FUNCTIONALITIES PROPOSED :a)Enquiries , b)Financial transactions :
opening of a/c s ,intra a/c transfers ,Third party transfer , issue of drafts/bankers
cheque ,etc ,:c)non financial transitions :Requests for cheque book , stop

payments, renewal of TDRs, standing instructions etc. Branches initially allots

user ID & password and send the same to customers in 2 separate postal mail
sent on different days along with covering letter .Branch will set INB flag to the
respective customers ID s in bank master . The relative data is dent to web
system after incorporation rights (enquiry/transactions). online SBI thus enables
customers to get information about their a/cs & transact round the round the
clock from any place with interner access.
SBI PROJECT ELENOR
SBI PROJECT ELENOR :ELENOR is a online reconciliation system for
nostro accounts entries .The project comprise of two stage implementation
,viz.a)Networking of forex computerize branches with FD intro'VSAT or RBI's
infinet backbone for online reporting of forex entries to FD where these could be
validated and responded immediately resulting in virtual self reconciliation of
rupee leg of the forex trans. b)online reconciliation of foreign currency leg of the
forex trans. between forex branches and foreign officers /correspondents . All
forex branches (A&B category ) have toroute (w.e.f.15.12.2000)FD related
entries through a new GL a/c called Forex clearing general a/c and not thro the
Br.Clg.Gen. A/c . All forex sales and all forex purchases are relatively credited
and debited to this new a/c . The forex computerized branches transmit these
entries on line to FD through VSAT links. The forex non computerized branches
report these trans. to FD through forex still these are computerized and
connected to FD on the network . The project reduces the accumulation of un
reconciled pipeline entries/provision on un reconciled debit entries besides
providing the bank with tight control on its foreign currency assets.
KNOW YOUR CUSTOMER (KYC)NORMS
Issued by RBI in august 2002 to protect bank against financial frauds and
money laundering , under section 35(A) of the banking Regulation Act,1949.
Objective:
To properly identify individuals / corporate; to monitor high value
transactions and transactions of suspicious nature; and establish procedure for
due diligence and reporting of such transactions.
Key provisions:
Open account with proper introduction /identifications; Monitor Cash
Transaction of above Rs.10lakhs; Route all remittances above Rs.50,000/through account (and not Cash); Watch transactions of suspicious nature beyond
a threshold limit.
The KYC guidelines are implemented by our Bank w.e.f 01-11-2002. Know
your Customer' the principal means of identifying the customer, is the platform
on which banking system operates a) To help control financial frauds, b) Identify
money laundering and suspicious activities, and C) for scrutiny and monitoring
of large value transactions. Customer Profiles are to be prepared for all accounts,
i.e. new as well as existing customer profiles have to be reviewed once in three
years.
For opening accounts by transfer from other branches, a new set of account
opening forms along with the customer profile to be obtained. While transferring
account from inoperative accounts to live ledger, a new set of account opening
form along with the customer profile to be obtained/updated.
At the time of opening of the account, based on customer's profile/a
threshold limit of transaction is to be determined. To begin with, the Bank has
proposed to exempt all transactions up to Rs.10lakhs from the purview of the

scrutiny. Further, a Threshold Limit, as a broad gridline to start with, will be

25% of the Annual Income in case of Individual' One month Turnover in the
case of Business Enterprise or Rs.10lakhs. These limits to be reviewed from time
to time and any transaction beyond this limit should be looked into with extra
caution.
At Computerized branches, the system should be programmed to capture the
transactions not consistent with the Customer's Profile and to generate a
message to exercise caution by the operating staff. Branches are required to
record and report all individual cash deposits and withdrawals of Rs.10lakhs in
deposit, cash credit and overdraft accounts, etc., in monthly intervals to
respective controllers along with Branch Manager's Monthly certificate.
Applications fro remittances exceeding Rs.50,000/- would require PAN to be
affixed thereon. The account holder not having PAN should give a suitable
declaration / statement in the form.
CORE BANKING SOLUTIONS
CORE BANKING SOLUTIONS is the software package customized' and
tailor made for specific banks to support their entire banking activities. It is done
in centralized environment where the customer's entire data is stored at Central
Server. It covers both retail and corporate banking including trade finance. Since
this software is highly technical and complex, banks are hiring the services of
specialized agencies. CBS enables the bank to launch innovative products to
suit the various customer segments.
CBS will enables bank to capture the personal data of the customer at the
point of contact, like his profession, income, dependents and their income and
occupation, occupation of spouse, assets owned etc., which can be used later on
for market survey, launching of need based products etc. CBS will facilitate the
bank to build relationship with the customers and structure customized financial
products by identifying their needs.
Advantages to the Customers:
Customer can transact the business from any branch, ATM, Telephone and
Internet. Hence he can do banking 'Any time, anywhere, any mode'
---

Accuracy in transaction, less incidence of errors

---

Better float of funds and can plan high banking operations

---

Better information on banking products

Advantages to the Bank:

--Achieving business growth, this will result in the increase in market
share
through IT.
---

Customer retention .

---

Better customer service and increase in volume.

---

Better funds for management.

---

Accuracy in data and input of data at one stage only.

---

Launching of customer friendly products will be easy.

---

Standardization of process throughout the bank.

---

Better MIS AND ALM.

---

Better reporting to external entities like RBI, COI, ECGE etc.

SBI - MISSION, VISION AND VALUES

MISSION STATEMENT:
To retain the bank's position as the Premier Indian Financial Services Group,
with world class standards and significant glob al business committed to
excellence in customer, shareholder and employee satisfaction and to play a
leading role in the expanding and diversifying financial service sector while
continuing emphasis on its developmental banking role.
VISION STATEMENT (QUALITATIVE:)
Premier Indian Financial Services Group with global perspective, world class
standards of efficiency and professionalism and core institutional values. Retain
its position in the country as a pioneer in development banking. Maximize
shareholder value through high sustained earnings per share. An institution with
a culture of mutual lacer and commitment, a satisfying and exciting work
environment and continuous learning opportunities.
VALUES:
---

Excellence in customer service.

---

Profit Orientation.

---

Belonging and commitment to the bank.

---

Fairness in all dealings and relations.

---

Risk-taking and innovation.

---

Team-playing.

---

Learning and renewal.

---

Integrity.

---

Transparency and discipline in policies and systems.

STRUCTURE AND ORGANISATION

The bank has its corporate office at Mumbai. Its domestic
operational area is divided in 14 circles, each with one local head
office
and a few zonal and regional offices.

Chairman

Retail net working branches

(RNB)

Commercial networking
branches (CNB)

Foreign Banks

Associate Banks

Circles
Modules

Region 1

region 2

region 3

region 4

Branches

ORGANISATONAL STRUCTURE OF CENTRAL OFFICE

Central office

Corporate
Office

Business

Chief credit
officer

Corporate

Chief financial
officer

intonation

Corporate
level
Officer

associate

Chief
vigilance
officer

national

Groups

banks

banking
Circles

1.Statement Showing Satisfaction With Housing Loan Interest

The main purpose of study about the satisfaction with

housing loan interest is to know whether the customers are
satisfied (or) dissatisfied about interest rate.

The Table I & Pi-

diagram.1 shows the satisfaction level & also dissatisfaction level.

TABLE .1

No.of

Percentage of

Respondent

Respondents

s
78
08
86

90%
10%
100

Choice

Satisfied customers
Dissatisfied customers
Total

Pie Diagram.1
Percentage of Respondents

10%

90%

Interpretation:
From the above table it is observed that among 86
customers 90% were satisfied and only 10% dissatisfied.
table 1 & graph 1 reveals that

The

maximum number of

customers are satisfied and minimum customers are dissatisfied.

The analysis says that maximum number of customers are
satisfied, because of all other banks

are also providing the loans

nearly at some interest and SBI is a public sector bank.

Reasons for dissatisfaction:
The above analysis shows that the dissatisfied customers
are only 10% of 86. i.e. dissatisfied customers are 8 out of 86
customers. In those dissatisfied customers, 4 of them expressed
that SBI has been increased the interest rates whenever the bank
would like to increase, 2 customers expressed that it is burden for
middle class people and the remaining 2 customers expressed
that there is no benefit with this interest rates.

1(a) Statement showing reasons for dissatisfaction with

the interest rate.
Choice

No. of Respondents

Fluctuation
s in rates
Burden for
middle
class
No use
Total

Percentage of
Respondent only
50%

25%

2
8

25%
100%

Table1(a)

25%

50%

25%

Fluctuations in rates

Burden for middle class

No use

2. statement showing satisfaction with loan repayment period

The purpose of analysis of satisfaction with loan repayment period

is to know how many customers were satisfied and how many
customers were dissatisfied.

Table .2
Choice

Satisfied customers
Dissatisfied customers
Total

No.of

Percentage of

Respondent

Respondents

s
75
13
88

87%
13%
100%

Pie Diagram :2
Percentage of Respondents

13%

87%

Interpretation:
From the above table 2 it is observed that among 86
customers 87% were satisfied and 13% dissatisfied. The table 2
and pie-diagram 2 reveals that maximum number of customers
are satisfied and minimum number of customers are dissatisfied.
.
The analysis says that maximum number of customers are
satisfied, because of there is no restriction on loan repayment
until the witness comes to an end.
Reasons for dissatisfaction:
The above analysis shows that dissatisfied customers are
only 13%. Some of them feel that repayment period is very short.
So, extra repayment period may create the prompt repayments.
The remaining dissatisfied customers expressed that interest
rates are high to early repayment. So, if interest rates reduced to
some extent possible, that will facilitate early & easy repayment.
3.Statement showing satisfaction with time period of
granting house
loan:

The main purpose is to analysis the satisfaction with time period

of granting housing loan is to know whether the customers are
satisfied (or) dissatisfied.
Table .3

Choice

Yes
No
Total

No.of

Percentage of

Respondent

Respondents

s
52
34
86

60%
40%
100%

Pie Diagram .3

TIME PERIOD OF GRANTING HOUSE LOAN

40%

60%

From the above table.3 it is observed that among 86

customers 60% were satisfied and 40% were dissatisfied.

The table and graph reveals that maximum number of

customers are satisfied and minimum customers are dissatisfied.
Here the analysis reveals that maximum customers are
satisfied, because

SBI providing better servicing to customers.

The dissatisfied customers are also nearer to 50% because the

bank officials should follow their rules and regulations. So, they
could take some more time to grant a loan.

Reason for dissatisfaction:

The analysis shows that nearly 40% of customers were
dissatisfied about the period of granting house loan. Most of the
dissatisfied customers expressed that officials are not responding
in time.
Some of them expressed that bank officials are taking so
much of time to grant the loan.
Some of the dissatisfied customers exposed that officials
are creating inconvenience to customers in the process of
granting loan.
4 Statement showing difficulty with rules of housing
loan:

The main purpose is to study about difficulty with rule of housing

loan is to know whether the customers feel any unconvinced with
rules or not.

Table: 4
Choice

No. of

Percentage of

Respondents

Respondents

convenience

53

inconvenien

62%

33

38%

86

100%

ce
Total

Pie Diagram .4
Rules of Housing Loan

38%

62%

From the above table.4 it is observe that among 86

customers 38% were dissatisfied with rules and 62% were
satisfied with rules.
The table 4 and Pi-diagram 4 shows that maximum number
of customers are satisfied with rules and minimum number of
customers were dissatisfied with rule of SBI.
Here

the

analysis

says

that

maximum

number

of

customers are satisfied, because some rules and regulations are

compulsory for any organization existence.
5.Statement showing risk in taking housing loan.
The main purpose of study of risk involving in taking loan is to
know whether the customers are satisfied with services of
officials.

Table: 5
Choice

High risk
Low risk
Total

No.of

Percentage of

Respondent

Respondents

s
42
44
86

49%
51%
100%

Pie Diagram .5
Percentage of Respondents

49%

51%

Here the table 5 shows thatYes

among
No
86 customers 49% were
expressed that the risk involved in taking loan is high and 51%
were satisfied about risk in taking loan.
The table 5 and Pie-diagram 5 shows that both satisfied and
dissatisfied customers are nearly equal to 50%. So, analysis says
that risk is common because, housing loan section is a port of
personal banking division.
Reasons for dissatisfaction:
The analysis shows that nearly half of the customers
expressed that bank
process taking a loan.

officials

services

is not good in the

Most of the customers expressed that officials unnecessarily

delaying the process of loan.
Some of the dissatisfied customers expressed that the bank
does not providing the money in time.
Some

of

them

expressed

that

the

process

is

complicated one to take a housing loan.

6.Statement showing problems in housing loan:

Table: 6
Choice

No.of

Percentage of

PROBLEMS
IN HOUSING LOANRespondents
Respondent

Satisfied customers
Dissatisfied

s
52
34

60%
40%

customers
Total

86

100%

40%

Pie Diagram .6
60%

No

Yes

very

From the above table 6 we can say that among 86

customers 60% respondents said that problems are less in
housing loans section and 40% respondents said that there are
more problems in housing loan section.
Here the maximum number of respondents dissatisfied
because response from officials is not good.
Reasons for dissatisfaction:
The analysis shows that nearly 40% of the customers
expressed that there are so many problems in the housing loan
section.
Most of the customers nearly 20 of them expressed that
exact information about the products is not furnished by the bank,
10 customers expressed that PBD is over loaded and the

remaining 4 customers expressed that there is a delay in process

of loan.

6 (a) Statement showing reasons for the problems in

housing loans:
No.of

Percentage of

Respondents
20
10
4
34

Respondents
59%
29%
12%
100%

Choice
Lack of Information
PBD is overloaded
Delay in process
Total

12%

29%

59%

Lack of Information

PBD is overloaded

Delay in process

7.Statement showing competition from other banks in

housing loans:

Table: 7
Choice

No.of

Percentage of

Respondent

Respondents

s
46
40
86

54%
46%
100%

SBF
Other Banks
Total

Pie Diagram: 7

COMPETITION FROM OTHER BANKS IN HOUSING LOANS

46%
54%

SBF

Other Banks

The above table.7 reveals that among 86 customers, 54%

were satisfied to the services provided by SBI and 46f% were
suggested that other banks are providing better services.
Here the analysis says that maximum number of customers
are satisfied and minimum number of customers are dissatisfied
about SBI because, Andhra Bank is also providing better services
to the customers.
Statement showing competition from other banks in housing
loans:

Choice
SBI
Andhra Bank
Canara Bank
Indian Bank
Total

No.of

Percentage of

Respondents
46
30
6
4
86

Respondents
54%
35%
7%
4%
100%

60%

54%

50%

40%

35%

30%

20%
7%

10%

4%

0%
SBI

Andhra Bank

Canara Bank

Indian Bank

The table 7 reveals that among 86 customers, 54%

customers were satisfied to the services of SBI, 35% customers
were satisfied with Andhra Bank, 7% customers were satisfied
with Canara Bank and only 4% wee satisfied with Indian bank.
The Table 7 and pie-diagram 7 reveals that there is a heavy
competition from Andhra Bank which has 35% of total market
share and there is a little competition from Canara Bank and
Indian bank. So, SBI main competitor is Andhra Bank.

8.Statement showing satisfaction with process of housing

loan:

The main purpose of the study about satisfaction with the

process of having loan is to know how many of the customers are
satisfied and how many customers are dissatisfied.

Table - 8
Choice

No.of

Percentage of

Respondent

Respondents

s
54
32
86

62%
38%
100%

Yes
No
Total

Pie Diagram .8
Process of Housing Loan

38%

62%

Yes

No

From the table 8 we can say that among 86 customers 62%

were satisfied and 38% were dissatisfied.

The analysis says that maximum number of customers are

satisfied, because the process of loan is simple and there are no
restriction s.
The table 8 & Pi-diagram 8 shows that 38% customers were
dissatisfied, because too much delay in the process of loan and
some of the dissatisfied customers expressed that there are some
unnecessary conditions in the process of loans.

9.Statement showing customer loyalty:

The purpose of the study is to know how many customers are
loyal to the SBI. The table 9 & Pi-diagram 9 shows the loyalty of
customers towards SBI.

Table .9
Choice
0 2 Years
3 5 Years
Above 5 Years
Total

Pie Diagram : 9

No.of

Percentage of

Respondents
23
50
15
86

Respondents
25%
58%
17%
100%

Customers Loyalty
58%

60%
50%
40%
30%

25%
17%

20%
10%
0%
0 2 Years

3 5 Years

Above 5 Years

The table 9 shows that 58% customers are having their

account in SBI from 3 to 5 years, 17% customers are having their
Account above 5 years and 25% customers are having their
account since 2 years.
Here the analysis says that maximum number of customers
expressed that they have on account in SBI bank since 3 5
years.

Because of the SBI is a public sector bank.

So, it is a

better one with compare to other bank s and some customers

expressed that we have nearly 1300 SBI ATM
India.

centers all over

Statement showing satisfaction with education loan in

interest:
The main purpose of study is to know the satisfaction with
education loan interest.

The table.10 & Pi-diagram.10 shows

satisfaction level of customers

Table: 10

Choice

Yes
No
Total

No.of

Percentage of

Respondent

Respondents

s
33
11
44

75%
25%
100%

Pie Diagram:10
EDUCATION LOAN IN INTEREST

25%

75%

Yes

No

From the table 10 we can observe that among 44

customers 75% were satisfied and 25% were dissatisfied.
The table 10 and Pie-diagram 10 reveals that maximum
number of customers are satisfied and minimum number of
customers are dissatisfied.
Here the analysis says that maximum number of customers
are satisfied, because Central Government providing education
loan at less interest rate. The dissatisfied customers are 25%
because these customers asking the government that interest
should be further reduced.
Reasons for dissatisfaction:
Most of the dissatisfied customers nearly 5 of 11 expressed
that SBI charging less interest on car loans and more interest on
education loan.

But this is not the actual case, here the car

company would like to improve the solves the remaining interest

will be paid by that car company and the 6 customers expressed
that the interest rate is burden for middle class people.

No.of

Percentage of

High with compare to

Respondents
5

Respondents
46%

car loans
Burdens for middle

54%

class
Total

11

100%

Choice

46%

54%

11.Statement showing satisfaction with education loan

repayment period:
The purpose of the

analysis is to know whether the

customers are satisfied (or) not with education load

repayment period.
Table - 11
No.of

Percentage of

Respondents
38
6
44

Respondents
86%
14%
100%

Choice
Satisfied customers
Dissatisfied customers
Total

Pie Diagram:11
EDUCATION LOAN REPAYMENT PERIOD

14%

86%

Yes

No

The above table-11 shows that among 44 customers 86%

were satisfied and 14% were dissatisfied, with loan repayment
period.
Here the table 11 and Pie-Diagram 11 shows that
maximum number of customers are satisfied, because there are
no reactions on repayment period.
Some of the customers were dissatisfied because of loan
repayment period is very short, these people feel that it is benefit
to the students if, the period will be large.

12.Statement showing satisfaction with time period of

granting education loan.

The purpose of analysis is to know how many customers are

satisfied with time period of granting education loan. The table
12 and Pi-diagram 12 shows satisfaction level.

Table-12
Choice

No.of

Percentage of

Respondent

Respondents

s
27
17
44

61%
39%
100%

Yes
No
Total
Pie Diagra.12

TIME PERIOD OF GRANTING EDUCATION LOAN

From the table 12 we can say that among 44 customers 61%

were satisfied and 39% were dissatisfied with time period of
granting education
loan.
39%
The Pi-diagram 12 and table 12 reveals that maximum
number of customers are satisfied and minimum number of
61%

customers were dissatisfied.

Reasons for dissatisfaction:

Yes

No

SBI is a public sector bank so, it is concentrations only on merit students and
it is not at all considering the average students and below average students and
below average students.

13.Statement showing difficulty with rules of education loan section:

The main purpose of the study is to know the difficulty with rules and regulation of
education loan section. The table 13 & Pi-diagram 13 shows the difficulty level with
rules of reduction loan.

Table .13

Choice

No.of

Percentage of

Respondent

Respondents

s
15
29
44

34%
66%
100%

Yes
No
Total

Pie Diagram: 13
RULES OF EDUCATION LOAN SECTION

34%

66%

Yes

No

From the t able 13 we can say that among 44 customers

34% were responded that there is difficulty with rules and 64%
were responded that there is no difficulty with rules.
Most of the dissatisfied customers expressed that according
to rules and regulations of the bank, there is no necessity of
witness/security up to Rs. 3,00,0000/- . But, for the future
purpose bank officials considering the security option.

`14.Statement showing risk in taking education loan:

The main purpose of the analysis is to know how much
risk involved to take education loan. The table-14 & Pidiagram-14 show risk level to take a education loan.

Table-14
No.of

Percentage of

Respondent

Respondents

s
31
13
44

70%
30%
100%

Choice

Yes
No
Total

Pie Diagram:14
Risk in taking Education Loan

30%

70%

Yes

No

The table-14 shows that among 44 customers, 70% were

responded that there is a risk in taking loan and 30% were
responded that there is not risk here the analysis says that
minimum number of customers are not satisfied, because bank
officials are creating more problem before taking the loan.
The analysis shows that 30% customers were dissatisfied
because, there is lot of risk to approach the official, the exact
information is given by the bank, there is a lack of co-operative
from bank officials and inconvenience
conditions.

with the terms and

15.Statement showing competition from other bank in

Education Loan:
Table. 15
No.of

Percentage of

Respondent

Respondents

s
25
19
44

57%
43%
100%

Choice

SBI
Other Banks
Total

Table: 15

43%

57%

SBI

Other Banks

The above table shows that among 44 customers 57% were

satisfied with SBI service and
banks are giving better services.

43% were suggested that other

15.Statement showing competition from other bank in

Education loan.
The main purpose of the analysis is to know the competition
level from other banks.

Table 15
Choice
SBI
Andhra Bank
Canara Bank
Total

No.of

Percentage of

Respondents
25
15
4
44

Respondents
57%
34%
9%
100%

Pie Diagram: 15

9%

34%

57%

SBI

Andhra Bank

Canara Bank

The table-15 and Pi-diagram-15 shows that among 44 customers

57% were satisfied with SBI education loan 34% were satisfied
with Andhra Bank service and only 9% were satisfied with Canara
bank.
The analysis shows that there is a heavy competition from
Andhra bank and less competition from the Canara bank to the
SBI. So, Andhra bank is the major competitor to the SBI.
Andhra bank is also providing the prompt & quick service to
customers and is also having a no. of
customers.

branches to serve the

16.Statement

showing

problems

in

Education

loan

section:
The main purpose of the study is to know what

are

problem in Education loan section:

Table - 16

Choice

Yes
No
Total

No.of

Percentage of

Respondent

Respondents

s
24
20
44

54%
46%
100%

Pie Diagram:16
PROBLEMS IN EDUCATION LOAN SECTION

46%
54%

Yes

No

the

From the table-16 it is observed that among 44 customers,

54% were respondent that problems are more in Education Loan
and 46% were responded that problems are less in Education
loan.
Reasons for dissatisfaction:
Most of the SBI customers expressed that there is a too
much delay in service and there is a lack of cooperation with
official to know the details of education loan.
Some of customers expressed that SBI is not putting efforts
to organize the loan meals.

17.Statement showing satisfaction with process of loan:

The purpose of the analysis is to know whether the customers
satisfied with process of loan (or) not.

The table-17 and Pi-

diagram-17 show the satisfaction level with process of loan.

Table .17

Choice

Yes
No
Total

Table. 17

No.of

Percentage of

Respondent

Respondents

s
36
8
44

82%
18%
100%

SATISFACTION WITH PROCESS OF LOAN

18%

82%

Yes

No

From the table 17 we can observe that among 44%

customers 82% were satisfied and 18% were dissatisfied.
Here the analysis says that maximum number of
respondents said that process of Education loan is simple.
Reasons for dissatisfaction:
The analysis says that only 18% of the customers expressed
that the process of education is complicated one, because of the
terms and conditions in the process are not suitable to these
customers.

18.Statement showing overall satisfaction in housing

loan:
The main purpose of the analysis is to know the overall
satisfaction in housing loan. The Table-18 and Pi-diagram-18 show
the satisfaction level.

Here the customers are divided into three groups basing on

their response.
1. Highly satisfied customers
2. Satisfied customers
3. Dissatisfied Customers
Table:18

Choice
Highly satisfied customers
Satisfied Customers
Dissatisfied Customers
Total

No.of

Percentage of

Respondents
42
33
11
86

Respondents
49%
38%
13%
100%

Bar Diagram: 18

SATISFACTION IN HOUSING LOAN

49%
50%
45%

38%

40%
35%
30%
25%
13%

20%
15%
10%
5%
0%
Highly satisfied

Satisfied Customers Dissatisfied Customers

From the table-18

customers we can say that among 86 customers,
49% were highly satisfied, 38% were satisfied and only 13% were
dissatisfied.
Reasons for dissatisfaction:
There are so many reasons for dissatisfaction of the
customers. Some important reasons are given below.
Too much delay in the process of loan.
Insurance is not covering on total cost of house.
Loan meals are not organized by SBI.
Delay in giving of drafts.
Over crowded mob in depositing withdrawals.

Statement showing overall satisfaction in Education loan:

The main purpose of the analysis is to know the overall
satisfaction in education loan.

The Tabel-19 & Pi-diagram 19

shows the satisfaction level.

Here the customers are divided into three groups basis on
their response.
1. Highly satisfied
2. Satisfied customers
3. Dissatisfied customers
Table: 19

Choice
Highly satisfied customers
Satisfied Customers
Dissatisfied Customers
Total

No.of

Percentage of

Respondents
22
12
10
44

Respondents
50%
27%
23%
100%

Bar Diagram:19
OVERALL SATISFACTION IN EDUCATION LOAN
50%
50%
45%
40%
35%

27%
23%

30%
25%
20%
15%
10%
5%
0%
Highly satisfied
customers

Satisfied Customers

Dissatisfied
Customers

From the table.19 we can observe that among 44 customers,

50% were highly satisfied, 7% were satisfied and 23% were
dissatisfied.
The analysis says that maximum number of customers are
highly

satisfied

and

minimum

dissatisfied.
Reasons for dissatisfaction:

number

of

customers

are

There are so many reasons for dissatisfaction of the

customers. Some important reasons are given below.

Education loan interest rate is burden for middle class people.

There are some difficult terms and conditions.
Exact information is not provided by the bank.
SBI is considering only the merit students.
20.Comparison

of

satisfaction

in

housing

loan

with

Education loan:
The purpose of the analysis is to compare satisfaction in
housing loan with education loan.

Table 20
No.of

Choice

% of Respondents

Respondents

Highly

satisfied

customers
Satisfied Customers
Dissatisfied Customers
Total

22

50%

12
10
44

27%
23%
100%

Pie Diagram: 20

23%

50%

27%

Highly satisfied customers

Satisfied Customers

Dissatisfied Customers

SUMMARY
The project gives the basic idea regarding specialisation of the study,
the topic of the study and about the organisation opted to carry on the study. It
also includes the need and importance of the study, objectives of the study,
methodology and limitations of the study.
Customer estimates which offer deliver the most value. Customers are
value maximisers, within the bounds of search cost unlimited balance, mobility
and income. They form an expectations of value and act on it. Whether or not
the offer lies up to the value expectation affects both satisfaction and purchase
profitability.
Whether the buyer is satisfied after purchase depends on offer's
performance in relation to the buyers expectation. In general, "satisfaction" is a
persons feelings of pleasure or disappointment resulting from comparing a
products perceived performance in relation to customer expectation. If the
performance falls short of expectations, the customer dissatisfied. If the
performance matches the expectations, the customer satisfied. If the
performance exceeds expectations, the customer is highly satisfied or delighted.
After the independence the imperial bank of India was nationalised
with a new name STATE BANK OF INDIA in 1955. At present there are 7
associate banks. Present number of share holders are 7.11 lacks and the
dividend recomended is 8.5 per share. The hierarchy structure of state bank of
india is symmetrically arranged both vertically and horizontally.
The state bank of india is the largest commercial bank in india in
terms of profits, assets, deposits, branches and employees. The financial
performance of SBI in terms of profit, dividend, net interst income,non- intrest
income has been gradually increasing. State bank of india provide different
types of loans such as car loans, housing loans, educational loans, personal
loans, property loans, loans against shares and debentures and other types of
loans.

State bank of india has also enhanced its business activities by

providing various schemes to different professional categories such as doctor
plus, teachers plus and provided other schemes like advances against LIC,
advances against units of UTI etc.. Recent develope ments of SBI are tele
banking facilities, Single window facilities, swadhan, banking ombudsman,
Clean note policy, SBI internet banking, SBI project elenor, core banking
solutions etc..
The link between customer satisfaction and customer loyalty is not
proportional. Suppose customer satisfaction is rated on a scale from 1 to 5. At
every low level of customer satisfaction, customers are likely to abandon the
company and every bab-mouth it. At levels 2 to 4, customers are fairly satisfied
but still find it easy to switch when a better offer comes along. At level 5, the
customer is very likely to repurchase and even spare good word of mouth about
the company. High satisfaction creates an emotional bond with the brand or
company, not just a rational performance.

SUGGESTIONS

Most of the customers expressed that they do not have

sufficient information about the products in development
banking division (DBD) and as well as personal banking division
(PBD).

Basing on customers

suggestion loan meals should be

organized twice in a year so that, you can create awareness in the

minds of customers about the loans.
There is a complaint that bank officials are not responding
properly. So, make all officials in the bank more responsible.
Some customers expressed that PBD is over loaded.

To be

adequately staffed to look after retail loans, education loan,

housing loans etc.
Most of the customers expressed that there is no rescheduled
facility in the bank. To fulfill the customer need rescheduled,
enhancement of loans etc. should be provided.
Most of the customers feel that enquiry/guidance cell should be
provided in the bank to reduce the over crowded mob in
depositing (or) withdrawals.
Most of the customers expressed that better
services can be provided by using e-banking.
FINDINGS OF THE STUDY
A sample size of 86 from housing loan section and 44 from
Education Loan section was taken and collected the data from the
questionnaire.

 Most of SBI customers were satisfied with interest rate on both

the loans.
I found that bank officials are taking so much of time to solve
the problems.
Most of the customers responded that delay should be avoided
in giving of loan amount.
Make all the officials in the bank feel more responsible.
Most of the customers were questioned that bank is providing
car loans for less interest with compare to education loan. But,
actually to promote the sales car companies are providing cars
for less interest.
I found that use of electronic devices should be increased.
I found that some times there is a problem with lack of
withdrawal forms, pay in slips etc.
I found that some times ATM centers are not working properly.

BIBLIOGRAPHY
1. Marketing Management -

Philip Kotler

2. Research Methodology -

Kothari C.R.

3. Consumer Behaviour

Schiffman

4. Marketing Management -

Ramaswamy and Namakumari

5. Advertising Management-

Published by ICM Bangalore

6. Advertising Management -

P.K. Agarwal

7. www.sbi.net