PROJECT REPORT

(Submitted for the degree of B.COM Honours in Accounting &finance under the University
WEST BENGAL STATE UNIVERSITY,BARSAT)

of

SERVICES MARKETING PROJECT ON STATE OF BANK INDIA

SUBMITTED BY
NAME OF THE CANDIDATE: PAYAL PALADHI
REGISTRATION NO
ROLL NO

:011029-2013
:310093

NAME OF THE COLLAGE

:DUM DUM MOTIJHEEL RABINDRA

MAHAVIDYALAYA
SUPERVISED BY
NAME OF THE SUPERVISOR :
NAME OF THE COLLAGE

: DUM DUM MOTIJHEEL RABINDRA

MAHAVIDYALA

1 page

Contents

PAGE NO.

Acknowledgement
Chapter-1:
1.
2.
3.
4.
5.
6.
7.

Introduction
HISTORY
IMPORTNCE OF THE STATE BANK OF INDIA
OBJECTIVES
METHODOLOGY
COLLECTION OF DATA
CHAPTER PLANING
CHAPTER-2:

CONCEPTUAL FARMWORK
CHAPTER -3:
PRESENTATION AND ANALYSIS
CHAPTER-4:
CONCLUSION AND RECOMMENDATIONS
CHAPTER-5:
BIBLIOGRAPHY

page 2

ACKNOWLEDGEMENT
I WOULD LIKE TO THNKS WEST BENGAL STATE
UNIVERSITY BARASAT AS WELL.AS DUM DUM
MOTIJHEEL RABINDRA MAHAVIDYALAYA COLLAGE FOR
GIVING ME THE OPPORTUNATY TO WORK ON SERVICES
MARKETING PROJECT ON STATE BANK OF INDIA.
I WOULD ALSO LIKE TO THANKS MY
SUPERVISER
WITH OUT SUPPORT THIS PROJECT
CAN ,T BE PREPARED WELL.
I WANT TO THANK ALL WHO HAVE SUPPORTED ME
AND GAVE THEIR TIMELY GUIDANCE. LAST BUT NOT THE
LEAST I AM VERY GRATEFUL TO ALL THOSE WHO
HELPED ME IN ONE WT OR THE OTHER WAY AT EVERY
STAGE OF MY WORK.
3 page

INTRODUCTION
History
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 stock companies 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-organised
banking entity took as its name Imperial Bank of India. The Imperial Bank of India remained a joint
stock company but without Government participation.
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. This made SBI
subsidiaries of eight that had belonged to princely states prior to their nationalization and operatonal
take-over between September 1959 and October 1960, which made eight state banks associates of SBI.
This acquisition was in tune with the first Five Year Plan, which prioritised the development of rural
India. The government integrated these banks into the State Bank of India system to expand its rural
outreach. In 1963 SBI merged State Bank of Jaipur (est. 1943) and State Bank of Bikaner (est.1944).

SBI has acquired local banks in rescues. The first was the Bank of Bihar (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 KrishnaramBaldeo Bank, which had been
established in 1916 in Gwalior State, under the patronage of Maharaja MadhoRaoScindia. The bank had
been the DukanPichadi, 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.There has been a proposal to merge all the associate banks into SBI to create a
"mega bank" and streamline the group's operations.[12]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 1.7%.)[13]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.[14]
On October 7, 2013, Arundhati Bhattacharya became the first woman to be appointed Chairperson of
.the bank
IMPORTANCE
IMPORTNCE OF THE STATE

BANK OF INDIA

You may have heard the saying "A Good Banker Like Good Tea Can Only Be Appreciated When Are In
Hot Water". Havent you heard the saying "Fire Tests The Purity of Gold And Silver". Similarly the true
value of a banker is realized in adversity. There is a famous saying that a banker is a friend who lends
an umbrella in sunny weather and asks for it back in rainy weather. The tagline of State Bank of India is
"With You All The Way" and "The Banker To Every Indian" What does this mean? This means that State
Bank of India stands with you in good times and in bad. Those who stand by you in times of need are

your true friends and State Bank of India is truly right up there. When you visit a bank what is it that
strikes you the most? Is it the shinning glass and marble floors or is it the warm and smiling banker who
sits behind the chair marked "May I Help You?".You already know the answer to this one. I would like to
remind all of you that the team of financial planners at IndianMoney.com are always there for you to
plan your financial needs in an efficient manner.
So What Is This State Bank Of India
State Bank of India Is A Banking behemoth and a financial services giant in India. As of December 2012
the SBI had 500 Billion Dollars worth of assets, over 15000 branches and over 150 foreign offices. It is
headquartered in Mumbai Maharashtra. Here the Bank Of Madras, Bank Of Bombay and Bank Of
Calcutta merged to form Imperial Bank Of India during the British Raj .This bank was nationalized in
1955 by the Government Of India and Reserve Bank Of India acquired a 60% stake in State Bank Of
India .It stands at the 285th position out of 500 in the Worlds largest companies. It also commands a
mammoth 20% of all the deposits and loans among commercial banks in India. The bank has close to
170 foreign offices spread over 34 countries. The bank has over 27000 ATMs in operation.
So What Are The Latest Products Offered By The State Bank Of India
SBI Prepaid Card : Here State Bank of India has launched a prepaid card targeting the workers or
contract laborers. This card can be charged with cash by the individual or his employer.SBI offers
relaxed Know Your Client Norms for this smart payout card. Companies can transfer payments to
workers through such cards even if they do not have a bank account The bank has safeguards in place
to prevent misuse of these cards. This might just be the next big thing we seek. Here we can load
money on these cards and hand them to our children. These can be used to withdraw their pocket
money at any of the automated teller machines or for online purchases. This card is available to
individuals as well as companies having a KYC complaint account at State Bank of India. Here you will
have to pay INR 100 in order to get the card issued. You can then charge this card by putting in a sum
of money on payment of INR 10.If you use this card at SBI ATMs you will not be charged any amounts
for your transactions. If you use this card for transactions at other ATMs you will be charged INR 20 for
financial transactions and INR 10 for non financial transactions. If you lose this card you will have to
reissue it on payment of INR 100.The card is valid for a ten year period and the minimum amount you

can load is INR 100.The monthly ceiling is INR 25000 which means you cannot fill this account with
more than this sum per month. The person to whom this card is issued can hold only one card. The
person who gets the card issued from his accounts can have a maximum of only three cards issued
.Companies can have any number of cards but each employee can have only one card .However no
interest is paid on these cards .You can check your balance using this card ,however you cant use this
facility for internet banking. This card is mainly used for paying of contract workers, vendors, laborers,
domestic helps with cash. This is mainly used for low cost transactions and payments.
State Bank Of India Is Truly A Game Changer
State Bank of India the largest lender in India cut its base rates by 5 Basis points from 9.75% to 9.7% in
January this year. It had earlier in the month of September 2012 cut its base rate from 10% to
9.75%.But this is so small a base rate cut? What do I gain from this?. This is a gain for both SBIs
current as well as old customers.SBI Home Loans are priced at 25 basis points above the base rate.
Here suppose in September 2012 you had taken a loan of 30 Lakhs for a term period of 20 Years at an
interest rate of 10.25%.You would repay a sum of 40.68 Lakhs after 20 years. At current rates we have
a 25 basis points rate above the base rate of 9.70%.We now have to repay 30 Lakhs for a term period
of 20 years at an interest rate of 9.95%.This translates to 39.24 Lakhs repayable after 20 years .This
translates to a saving of INR 1.44 Lakhs .Clearly a large sum of money. This shows that State Bank Of
India is a path changer in the home loan lending business and other banks will have no choice but to
follow the leader.SBI has slashed the processing fee for home loans and auto loans in the time frame
from October To December 2012.For a home loan of 25 Lakhs the processing fee has reduced from
0.25% to 0.125%.For auto loans the processing fee has reduced from 0.51% to 0.255%.Clearly
something to cheer about.
State Bank Of India A Banking GiantThe Best In The Business
The feature of any product or a business is the demand it generates for its products. The moment it is
launched the product should be lapped up and there should be a shortage of it. A certain electronic
giants products in the US are lapped up in no time at all since its launch. Any guesses for which this
product is?. Even in India there is a certain automobile giant whose products disappear from the

manufacturing units as fast as they are produced. Similarly when SBI launches a new product such as a
bond offer even in a distant country it generates huge demand and value for its products.SBI raised
1.25 Billion Dollars selling 5 year bonds due in 2017 at 4.125%.These bonds offer a rate which is 375
basis points above the five year USA Bonds at the time of issue. The bond was the largest offering by a
public sector bank in India. The sale took place from the banks London Branch. Clearly a sign that this
Bank commands value even in a foreign country. Another feature of a great company is the demand it
generates for careers and growth prospects in jobs working for it.SBI advertised for 1000 Probationary
officers in the year 2012 and it had 5 Lakh applicants. This year it advertised for 1500 Positions and had
17 Lakh applicants. This is a true mark of a giant.
It Is Better To Err On The Side Of Caution
However like many banks in India the percentage of nonperforming assets for SBI has gone up in recent
years. Many banks in the USA collapsed due to faulty financial practices ." Banks Were Regarded As Too
Big To Fail ". We all know what happened in the US subprime crisis.SBI referred 3 loan accounts to the
Corporate Debt Restructuring cell in the year 2012 worth 3400 Crores. The exposure to Air India turned
out to be a non performing asset in spite of fully secured loan of INR 1100 Crores. The single largest
company in recent years that turned out to be a non performing asset was Kingfisher Airlines.SBI has
the largest exposure to Kingfisher airlines among any of the lenders to this airline and has lent a
whooping 1457 Crores to the beleaguered airline. This airline is in severe debt and has restructured its
loans to lower costs. Clearly SBI has taken a big hit here. State Bank of India was among dozens of
Public Sector banks and private sector banks in India accused of money laundering by the online
magazine Cobrapost. The SBI chairman has promised stringent action against any staff members who
have committed the violations or encouraged others to do so The bank is on a fact finding mission.
Clearly a stitch in time saves nine. As State Bank of India moves to become an even bigger Banking
Institution it has adopted a policy where it has the courage to face the truth. Do the right thing because
it is right. Open the magic key to integrity.

SERVICE

A service is the action of doing something for someone or something. It is largely intangible .
A product is tangible since you can touch it and own it .A service tends to be an experience that is
consumed at the point where it is purchased ,and cannot be owned since is quickly perishes. A person
could go to a cafe one day and have excellent service, and then return the next day and have a poor
experience.
According to Irons(1997:12)pure service are intangible but they do usually add value to or
make available ,a tangible product .They do not result in transfer of ownership and may leave
only memories.
Zeithaml and Bitner(1996)claim that in the simplest term service are deeds, processes ,and
performance. Their broader definition states that service include all economic activates whose output
is not a physical product, is generally consumed at the time it is product ,and provides added value
in forms that are essentially intangible concerns of the purchaser.
Kotler (1996)define service as an activity that one party offers another that is essential
intangible and does not result in the ownership of anything .Its production may or may not be tied
to a physical product.
Characteristics of service
There are five characteristics to a service which will be discussed below.
1.
2.
3.
4.
5.

Lack of ownership.
Intangibility
Insparability
Perishibility
Heterogeneity

Service can be classified on the basic of the industry as shown in the table below:

CLASSIFICATION OF SERVICES BY INDUSTY

INDUSTRY
Entertainment Industry
Hospitality Industry

Trading
Financing and Insurance

Education
Tranceportation

Public utilities
Government service

SERVICE
Movie , relevision programmes ,ets.
Amusement and recreation service.
Hotels and lodging place
Restaurants and cafes
Food catering and event organisation
Wholesale trade and Retail trade
Online trade
Loan and advance
Credit cards and Banking
Investment, Brokerage and advice
Real estate and Consultancy servce
School ,collage, Training and Consltancy
Air, Sea, Road and train travel
Car hire, charrer, pipeline ,goods transport
Mail and courier service
Electricity and water supply
Drainage, sewage and, garbage collection and
diposal
Defence, Policy and Protection
Health and education

 Health
Business service
Telecommunications

Hospital ,clinics, gymnasium and spa

Weight reduction and de-addiction
programmes
Cleaning ,catering ,security and traning
Telephone ,fax, e-mail
Mobile telephone
Data transfer and video conferencing.

Service Marketing
Service marketing is difficult to define .Grove & Fisk (1983,1992) product work based upon
the metaphor of service as theatre. How appropriate do you feel this metaphor is in defining service
and how may it help or hinder the service market? A service is an act or performance offered by one
party A service is an act or performance offered by one party to another . Although the
process may be tied to a physical product ,the performance is essentially intangible and does not
normally result in the ownership of any of the factor of production (Gronroos 2000) .It can be
difficult to define just what is meant by a service because most product we buy contain a mixture
m of both goods and service element . A meal in a restaurant contains a combination of goods
elements (the food ) and service elements (the manner in which the food is served)

SERVICE MARKETING MIX

The traditional marketing mix is the most basic concept in marketing and is defined as
elements which organization control and use to satisfy or communicate with customers (Zeithaml
and Bitner ,1996:23).The components of the traditional marketing mix are the four P s: product,
price, place , and promotion . Careful management of these components is essential for the
successful marketing strategies of organisation.

SEVICE QUALITY
Quality is defined as DEGREE TO WHICH A SET OF INHERENT CHARACTERISTIC by ISQ 9000.
Quality is also defined as FITNESS FOR USE by Joseph M. Juran. Fitness in this definition is defined
by the customer.
Quality can also be defined in simple words as Conformance to Requirements as defined
Philip B. Crosby . The difficulty with this the requirements may not fully customer wants.
OBJECTIVES
1)To know the satisfactions level of the customers from the banking with particular
whether private or public .

sector i.e,

2)To know the reason why people are using banking.

3)To study the recent changes made in public sector banks due to competition arising thereof.
4)To study the application or banking.

METHODOLOGY
RESEARCH DESIGN

Research design is mainly two types:

1)Exploratory research
2)Descriptive research
COLLECTION OF DATA
The data can be collected from primary and secondary source .the basic premises of my study is
primary data.Convenient sample that respondents were contacted personally and the instrument used
for collecting data is questionnaire.
Statistical Data can be classified into two categories
1)Primary sources
2)Secondary sources
Primary Data is collected by using the questionnaire method.
Secondary data the main sources of secondary data are combination of information from the internet
,research journals and books of the related topic.

SIGFICANCE OF STUDY
The study will help to find out reason which lead to preference of public and private banks by
customers.the study will help to find out by which facilities banks attracted the customers.

CHAPTER PLANING
1)CHAPTER 1: Introduction

2)CHAPTER 2:Conceptul Framework

3)CHAPETER 3:Presentation and Analysis
4)CHAPTER 4: Conclusion and Recommendation

CHAPTER:2
CONCEPTUAL FARMWORK

The follow services are offered by the SBI Commercial and International Bank:1) NATIONAL SCENARIO:
Nationalized banks such as state Bank of India(SBI),though pygmies in the international banking
market ,are banking behemoths of India.They have branches spread over the entire length and
breadth of the country .SBI in particular is all-pervasive enjoying sprawling network of 9000 branches .
Its blue and white signal is visible to the smallest hamlet IT has assets understood to be worth about
Rs2,22,500 crore.SBI has very conservative apporach to accounting particular when it comes to
declaration of its assets.
INTERNATIONAL SCENDARIO:
The SBI Commercial and International Bank is popularly known as SBICI Bank.It function as a Private
Sector Bank and offers excellent services to its clients that include Net Banking, Tele Banking and ATM
facilities. the bank has also received the ISO-9002 award to its credit.As the name suggests ,the SBICI
Bank is a fully owned subsidiary of the State Bank of India.
As per the october2003regulation ,the SBI grants foreign exchange up to US$10000 on the ground of
tourism or personal travel to any other country of the world apart from Nepal and Bhutan.
The SBICI performs efficiently and effectively and caters to the needs of its clients to the best possible
extent .Being a part of the State Bank of India ,the SBICI has made its mark not only nationally but
also ,in the international scenario as well.
Deposit Schemes
2)Saving Bank
3)Current Account
4)Fixed Deposit
5)NRE Accounts or Non Resident External Account
6) Recurring Deposit

Facilities for NRI Banking:1)Personal Loans

2)Consumer Loan
3)Home Loan
4)Mortgage Loan
5)Loan for vehicles
6)Education Loan
CLASIFICATION OF BANKS IN INDIA
RBI
1.
2.
3.
PUBLIC
PRIVATE
SECTOR SECTOR
SBI &
Axis
Associate
s
Bank of
Baroda

ICICI

Dena
Bank

HDFC

COMMERCIAL
COOPARTIVE
DEVELOPMENT
COOPERA
TIVE
Rani
Laxmibai
Urban CoopBank
Mehsana
Urban CoOp
Bank Ltd.
Surat
Peoples

DEVELOPM
ENT
RRD

IFCI

IDBI

Canara
Bank

ING
Vyasa

UCO
Bank

HSBC

Coop
Bank Ltd.
Kalupur
NABARDUC
Commerci
al
Coop
.Bank ltd.
The Kapol ------Co
operative
Bank ltd.

CHAPTER -3
PRESENTATION AND ANALYSIS
BANKING IN INDIA
I never have been various service providea by bank in india customers. There has been various
sub categories in every broad category.
Bank Service

Wealth management
Personal
NRI Bank
Corporate Banking
Business Banking

A)Personal Banking:
There has been various products available in personal banking sector . We would like to discuss
these service one by one.

1. Accounts & deposit

Types of the deposit

Dream Deposit

Fixed Deposit
Recurring Deposit
Saving Account

Salary Account

Features
Term deposit plan
that enable the
customer to realize
their dream at every
stage of life.
Give attractive
returns to customers.
The smallest of
customers saving
into large one.
It is providing 4
percent interest accto
RBI guidelines.
Customers can avail
the experience of
banking through
ATM,Mobile,Internet
Customers can take
advantages of
efficient payroll
system.

2)Cards
Types of Cards
Debit Card

Credit Card

Feature
These cards offered
by banks which has
wide acceptance at
various bank ATM,
Various shopping
malls gives wide
variety of
convenience to pay
now buy latter.
These card work on
the principal of buy
now pay latter .It has
enhanced the buying
power of the
consumers.

3)Loans
TYPES OF LOAN
Home loan
Personal loan
Commercial Vehicle loan
Car loan
Loan against security, Gold ,Ornaments etc.

4)Investment
Banks offer personal solution to their customers based on their fund capacity and risk appetite of
the particular customers to deliver greater returns.
Banks offer various investment products like bonds ,GOI bonds, Mutual funds ,IPO ,Insurance product
etc.
B)Wealth management:
It is the different function is banks that give the wealth management service to HNI , manage their
portfolio . It is the team of expert on investment , banking loans , property service etc.Which
provide expertise advice to their client and manage their portfolio to maximize the return.
C)Corporate Banking:
This service can be divided into various heads for the corporate client.
CORPORATE BANKING

Commercial
Global market
Investment banking
Project finance
Structure finance

D) Business Banking:
BUSINESS BANKIN

Current Account service

Business loan
Trade service
Advisory Service

SERVICE
Current Account &
Service
Business loan

Trade service

FEATURES
Benefit is proved by
speed payment &
collection.
For SME sector, timely
finance to leverage
on business
opportunity.
Various service like
letter of credit ,bank
guarantee,export bill
negotiation etc. Are
provided by banks.

STATE BANLK OF INDIA (SBI) CORPORATE PROFILR

State bank of India (SBI) is the countrys largest commercial Bank in term of profits , assets, deposit,
branches and employees .State Bank of India has an extensive administrative structure to oversee
the large network India and abroad.The corporate centre is in Mumbai and 14 local head offices and
57 zonal office are located in important cities spread through out the country . the corporate has
several other establishments in and outside Mumbai ,designated to cater various function.
HOME LOAN INTERES RATE
LOAN UPTO
AMOUN Rs 30
T
LACK
Interest 8.75%
rate
during
1st yrs
Interest 9.50%
rate
during
2nd 3rdyr
Interest 9.75%
rate
from4th
yr

ABOVE
Rs 30
LACK
TO75
LACK
8.75%

ABOVE
Rs75
LACK
TO 5 Cr.

9.50%

10%

10%

10.00% 10%

ABOVE
5 Cr
10.25%

10.25%

10.25%

CAR LOAN INTEREST RATE

LOAN
AMOUNT
Interest rate
during 1styr
Interest rate
during 2nd&
3rdyr

BEKOW Rs 5
KACK
9.25% p.a

Rs 5 LACK
AND ABOVE
9.25%p.a

10.25%p.a

10.25%p.a

Interest rate
11.25%p.a
during 4th and
5thyr
Interest rate
11.25%p.a
for 6th& 7thyr

11.00%p.a
11.00%p.a

All the interest charge & fee are nationalized and same in all the branches .Further detail is available on
following website.(www.sbiindia.com)

CHAPTER-4

CONCLUSION ANDRECOMMENDATIONS

CONCLUSION
SBI is top of consumers share of mind & share of heart in India banking sector .It has the largest
network of bank branches across the India which enable it to deliver its service in various geographic
areas .SBI is the market leader and others follow what SBI does.SBI has different targeting strategy for
various product \ service based on its target segment. As it has captured more than 20% share of
market it can leverage on its economies of scale and economies of scope .Consumers perceive SBI as
the one stop shopping where they can meet the all the banking service requirement .Consumers
perceive SBI as the safest bank due to his government holding & large customer based.

RECOMMENDATION
Following few points which would help SBI in improving its consumer satisfaction which in turn would
also improve its consumer perception.
SBI bank branches should improve to its physical infrastructure to make it
comparable to the private bank .Though it is the gradual and slow process, so SBI can start with
urban cities first.
Bank should recruit more personal to reduce average waiting time per customer .Also ,it would
increase the ratio of no of employees per 1000 customers.
Promotion on Electronic media is less when compared to private banks. Banks can increase
expenditure on this to improve its brand building further.

BIBLIOGRAPHY

Google

Philip Kilter
Wikipedia

 WWW.sbionline.com

www.sbiloan.in