CHAPTER-1

INTRODUCTION

BANKING
A Bank is a financial institution that accepts the deposits from the public and creates credit. Lending activity
can be performed either directly or indirectly through capital markets. Due to their importance in the
financial system and influence on national economics, banks are highly regulated in most countries. Most
nations have institutionalized a system known as fractional reserve banking under which banks hold liquid
assets equal to only a portion of their current liabilities. In addition to other regulations intended to ensure
liquidity, banks are generally subject to minimum capital requirements based on an international set of
capital standards, known as the Basel Accords. Banking in its modern sense evolved in the 14th century in
the rich cities of Renaissance Italy but in many ways was a continuation of ideas and concepts
of credit and lending that had their roots in the ancient world. In the history of banking, a number of banking
dynasties — notably, the Medicis, the Fuggers, the Welsers, the Bahrenberg’s and the Rothschild’s — have
played a central role over many centuries. The oldest existing retail bank is Banca Monte dei Paschi di
Siena, while the oldest existing merchant bank is Bahrenberg Bank.

HISTORY OF BANKING
Banking began with the first prototype banks of merchants of the ancient world, which made grain loans to
farmers and traders who carried goods between cities. This began around 2000 BC
in Assyria and Babylonia. The origins of modern banking can be traced to medieval and
early Renaissance Italy, to the rich cities in the north like Florence, Lucca, Siena, Venice and Genoa.
The Bardi and Peruzzi families dominated banking in 14th-century Florence, establishing branches in many
other parts of Europe. One of the most famous Italian banks was the Medici Bank, set up by Giovanni di
Bicci de' Medici in 1397. The earliest known state deposit bank, Modern banking practices,
including fractional reserve banking and the issue of banknotes, emerged in the 17th and 18th centuries.
Merchants started to store their gold with the goldsmiths of London, who possessed private vaults, and
charged a fee for that service. In exchange for each deposit of precious metal, the goldsmiths
issued receipts certifying the quantity and purity of the metal they held as a bailee; these receipts could not
be assigned, only the original depositor could collect the stored goods. The Bank of England was the first to
begin the permanent issue of banknotes, in 1695. The Royal Bank of Scotland established the
first overdraft facility in 1728. By the beginning of the 19th century a bankers' clearing house was
established in London to allow multiple banks to clear transactions. The Rothschild’s pioneered international
finance on a large scale, financing the purchase of the Suez canal for the British government.

1
History of Banking in India
In the modern sense, originated in the last decades of the 18th century. Among the first banks were the Bank
of Hindustan, which was established in 1770 and liquidated in 1829-32; and the General Bank of India,
established in 1786 but failed in 1791.
The largest bank, and the oldest still in existence, is the State Bank of India (S.B.I). It originated as the Bank
of Calcutta in June 1806. In 1809, it was renamed as the Bank of Bengal. This was one of the three banks
funded by a presidency government, the other two were the Bank of Bombay and the Bank of Madras. The
three banks were merged in 1921 to form the Imperial Bank of India, which upon India's independence,
became the State Bank of India in 1955. For many years the presidency banks had acted as quasi-central
banks, as did their successors, until the Reserve Bank of India was established in 1935, under the Reserve
Bank of India Act, 1934.

Public Sector Bank

Public Sector Banks (PSBs) are banks where a majority stake (i.e. more than 50%) is held by a government.
The shares of these banks are listed on stock exchanges. There are a total of 27 PSBs in India
[21 Nationalized banks + 6 State bank group (SBI + 5 associates) ].
In 2011, IDBI bank and in 2014 Bharatiya Mahila Bank were nationalized with a minimum capital of Rs 500
crore.
State Bank and its associates
1. State Bank of India
2. State Bank of Bikaner and Jaipur
3. State Bank of Hyderabad
4. State Bank of Mysore
5. State Bank of Patiala
6. State Bank of Travancore

Nationalised banks
1. Allahabad Bank
2. Andhra Bank
3. Bank of India
4. Bank of Baroda
5. Bank of Maharashtra
6. Canara Bank

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 7. Central Bank of India
8. Corporation Bank
9. Dena Bank
10. Indian Bank
11. Indian Overseas Bank
12. Oriental Bank of Commerce
13. Punjab & Sindh Bank
14. Punjab National Bank
15. Syndicate Bank
16. UCO Bank
17. Union Bank of India
18. United Bank of India
19. Vijaya Bank

Other public sector banks

 IDBI Bank
 Bharatiya Mahila Bank

Private Sector Bank

The private-sector banks in India represent part of the indian banking sector that is made up of both private
and public sector banks. The "private-sector banks" are banks where greater parts of state or equity are held
by the private shareholders and not by government. The private sector banks are split into two groups by
financial regulators in India, old and new. The old private sector banks existed prior to the nationalisation in
1969 and kept their independence because they were either too small or specialist to be included in
nationalisation. The new private sector banks are those that have gained their banking license since the
liberalisation in the 1990s.

1. Axis Bank
2. Bandhan Bank
3. Catholic Syrian Bank
4. City Union Bank
5. Dhanlaxmi Bank
6. DCB Bank
7. Federal Bank
8. HDFC Bank
9. HSBC Bank
10. ICICI Bank
11. IDFC Bank
12. Karnataka Bank
13. IndusInd Bank
14. Jammu and Kashmir Bank
15. Karur Vysya Bank
16. Kotak Mahindra Bank
17. Lakshmi Vilas Bank
3
18. Nainital Bank
19. RBL Bank
20. South Indian Bank
21. Yes bank
22. Citi Bank

4
 CHAPTER-2
CONCEPTUAL FRAMEWORK
BANK PROFILE (STATE BANK OF INDIA {SBI})

State Bank of India (SBI) is an Indian multinational, public sector banking and financial services company.
It is a government-owned corporation with its headquarters in Mumbai, Maharashtra. As of 2014-15, it had
assets of 20.480 trillion (US$300 billion) and more than 14,000 branches, including 191 foreign offices
spread across 36 countries, making it the largest banking and financial services company in India by
assets. The company is ranked 232nd on the Fortune Global 500 list of the world's biggest corporations as of
2016. SBI provides a range of banking products through its network of branches in India and overseas,
including products aimed at non-resident Indians (NRIs). SBI has 14 regional hubs and 57 Zonal Offices that
are located at important cities throughout India.

OPERATIONS
SBI provides a range of banking products through its network of branches in India and overseas, including
products aimed at non-resident Indians (NRIs). SBI has 14 regional hubs and 57 Zonal Offices that are
located at important cities throughout India.

DOMESTIC PRESENCE
SBI has 18,354 branches in India. In the financial year 2012–13, its revenue was ₹2.005
trillion (US$30 billion), out of which domestic operations contributed to 95.35% of revenue. Similarly,
domestic operations contributed to 88.37% of total profits for the same financial year.
Under the Pradhan Mantri Jan Dhan Yojana of financial inclusion launched by Government in August 2014,
SBI held 11,300 camps and opened over 3 million accounts by September, which included 2.1 million
accounts in rural areas and 0.88 million accounts in urban areas.

International Presence
As of 2014–15, the bank had 191 overseas offices spread over 36 countries having the largest presence in
foreign markets among Indian banks. It has branches in Singapore, Moscow, Colombo, Dhaka, Frankfurt,
Hong Kong, Tehran, Johannesburg, London, Los Angeles, Male in the Maldives, Muscat, Dubai, New
York, Osaka, Sydney, and Tokyo. It has offshore banking units in the Bahamas and Bahrain, and
representative offices in Myanmar, Bhutan and Cape Town.

Others SBI Service Points

As of 31 March 2016,SBI has 49,577 ATMs & SBI group (including associate banks) has 58,541 ATMs.

5
Listings and shareholding
As on 31 March 2014, Government of India held around 58.59% equity shares in SBI. Life Insurance
Corporation of India is the largest non-promoter shareholder in the company with 14.99% shareholding.

Shareholders Shareholding[21]

Promoters: Government of India 58.60%

Banks & Insurance Companies 16.79%

FIIs/GDRs/OCBs/NRIs 12.04%

Mutual Funds & UTI 03.78%

Private Corporate Bodies 02.87%

Others 5.92%

Total 100.0%

The equity shares of SBI are listed on the Bombay Stock Exchange where it is a constituent of the BSE
SENSEX index and the National Stock Exchange of India where it is a constituent of the CNX Nifty.
Its Global Depository Receipts (GDRs) are listed on the London Stock Exchange.

Major competitors
Some of the major competitors for SBI in the banking sector are large private sector banks ICICI
Bank, HDFC Bank, Axis Bank, IndusInd Bank, small regional banks and other public sector banks Canara
Bank, Bank of India and Union Bank of India. However, in terms of average market share, SBI is by far the
largest player in the market.

6
 State Bank of India

Type Public company

Traded as NSE: SBIN

BSE: 500112
LSE: SBID
BSE SENSEX Constituent
CNX Nifty Constituent

Industry Banking, financial services

Founded 2 June 1806, Bank of Calcutta

27 January 1921, Imperial Bank of
India
1 July 1955, State Bank of India
2 June 1956,[1] nationalization

Headquarters Mumbai, Maharashtra, India

Area served Worldwide

Key people Arundhati Bhattacharya

(Chairperson)

Products Consumer banking, corporate

banking, finance and
insurance, investment
banking, mortgage loans,private
banking, private equity,
savings, securities,asset
management, wealth management,

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 credit cards,

Revenue ₹2.7287103
trillion(US$41 billion) (2016)[2][3]

Profit ₹127 billion(US$1.9 billion)

(2016)

Total assets ₹20.480 trillion(US$300 billion)

(2014-15)

Owner Government of India

Number of 293,459 (2016)

employees

Slogan The Banker to Every Indian

BANK PROFILE (HDFC BANK)

HDFC Bank is an Indian banking and financial services company headquartered in Mumbai, Maharashtra.
It has about 76,286 employees including 12,680 women and has a presence in Bahrain, Hong Kong and
Dubai. HDFC Bank is the second largest private bank in India as measured by assets. It is the largest bank in
India by market capitalization as of February 2016. It was ranked 69th in 2016 BrandZ Top 100 Most
Valuable Global Brands.

In 1995 HDFC Bank was incorporated, with its registered office in Mumbai, India. Its first corporate office
and a full service branch at Sandoz House, Worli was inaugurated by the then Union Finance Minister, Dr.
Manmohan Singh.
As of June 30, 2016, the Bank’s distribution network was at 4,541 branches and 12,013 ATMs.

Products and services

Market leader in e-commerce, HDFC Bank provides a series of digital offerings like - 10 second personal
loan, Chillr, PayZapp, SME Bank, Watch Banking, 30-Minute Auto Loan, 15-minute Two-Wheeler Loan, e-
payment gateways, Digital Wallet, etc.

8
HDFC Bank provides a number of products and services which includes Wholesale banking, Retail banking,
Treasury, Auto (car) Loans, Two Wheeler Loans, Personal loans, Loan Against Property and Credit Cards.
The latest entry in the league is 'Project AI' under which HDFC Bank, over the next few weeks, would
deploy robots at select bank branches. These robots will offer options such as cash withdrawal or deposit,
forex, fixed deposits and demat services displaying on the screen to persons coming into the branch.

Acquisitions
HDFC Bank merged with Times Bank in February, 2000. This was the first merger of two private banks in
the New Generation Private Sector Banks category. In 2008, Centurion Bank was acquired by HDFC Bank.
HDFC Bank Board approved the acquisition of CBoP for Rs. 9,510 crore in one of the largest mergers in the
financial sector in India.

Listings and shareholding

The equity shares of HDFC Bank are listed on Bombay Stock Exchange and the National Stock Exchange of
India. Its American Depository Shares are listed on NYSE and the Global depository receipt are listed on
the Luxembourg Stock Exchange where two GDRs represent one equity share of HDFC Bank..

Shareholders (as of 31 December-2015) Shareholding

Promoter Group (HDFC) 21.57%

Foreign Institutional Investors (FII) 32.4%

Individual shareholders 8.5%

Bodies Corporate 7.5%

Insurance companies 5.38%

Mutual Funds/UTI 8.65%

NRI/OCB/Others 0.29%

Financial Institutions/Banks 2.75%

9
ADS/GDRs 18.78%

10
 HDFC BANK

Type Public

Traded as BSE: 500180

NSE: HDFCBANK
NYSE: HDB
BSE SENSEX Constituent
CNX Nifty Constituent

Industry Banking, Financial services

Founded August 1994

Headquarters Mumbai, Maharashtra, India

Area served India

Key people Aditya Puri (MD)[1]

Products Investment Banking

Investment Management
Wealth Management
Private Banking
Corporate Banking
Private Equity
Finance and Insurance
Consumer Banking
Mortgages
Credit Cards[2]

Revenue ₹10,588.1 crore(US$1.6 billion) (2016)[3]

Profit ₹3,238.9 crore(US$480 million) (2016)[4]

Total assets ₹755,100 crore(US$110 billion)(2016)[5]

11
 1. Saving Account Policy of SBI and HDFC

Saving accounts are different types

 Saving plus Account: Saving plus account is for everyone anyone will open a saving plus
account. Where the account holder is compulsory to required a minimum balance of INR 25,000 in
our account at every time.
 Yuva Saving Account: Yuva Saving account is for student which are studying they can only
open a Yuva saving account. There is no limit of minimum balance in this account. Yuva saving
account is open as zero balance account.
 Basic Saving Account: Basic saving account is open on zero balance account. Which is open by
easily. This account is for anyone.
 Small Saving Account: Small saving account is account where the people saved his/her small
saving this account is same as other saving account. There is no limit of minimum amount in account
zero balance account.

The saving account interest rate of both SBI and HDFC is 4% per annum.
 Savings Bank interest will be calculated on the daily balances maintained in your account, at a
rate of interest as specified by RBI from time to time
 Savings Bank interest will be paid at quarterly intervals from Financial Year 2016-17.
 Monthly number of transaction is fixed in saving account

According, to my information and questionnaire result saving account is easy to open in HDFC bank rather
tha State Bank of India (SBI). The HDFC bank agent is come at home for open the account but in SBI after
going to bank it is not easy to open a account. You have a gurantee which have a account on the SBI. The
paper work is more in SBI to open a saving account and HDFC have simple procedure to open a saving
account. But even these facility in HDFC people is choosed SBI because SBI is government bank and the
largest bank of India they have branches in all over the India.

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 2. Current Account policies of SBI and HDFC

Generally Current account is open by a Business men or a Business firm for daily transaction of the firm or
business. According to Reserve Bank of India (RBI) the minimum interest rate is 2% per annum. Both Bank
have provide different facilities to current account user.

Facilities provides by SBI to current account user

 Low minimum balance requirement.
 Overdraft facility available based on credit history
 NO restriction on number of payments/ withdraws
 Multicity cheque facility available
 Free ATM/ Debit card in the 1st year; charge from 2nd years onwards.
 No passbook is issued but monthly statement of account is issued
 Accounts maintenance charges applicable

Facilities provided by HDFC to current account user

 Free cash deposit of up to 10 times your Average Monthly Balance (AMB) across all branches in
your city.
 Free 40 Demand Drafts & 40 Pay Orders per month payable at HDFC Bank branch locations.

 Free local/ intercity cheque collection & payment within HDFC Bank Branch locations.
 100 free "at-par" cheque leaves per month.

13
Interest rate on current account is given 2% per annum by both SBI and HDFC.

Sometime bank charged interest from account in case of overdraft from bank. This policy is same for both
bank but SBI is give for facility to current account holders.

The private business firms prefer HDFC rather than SBI because the shortage of time. The HDFC is private
bank and SBI is government bank and the rush in SBI is more the middle class or service class have select
SBI but the business men have select HDFC because of easy way of banking.

3. Home Loan polices of SBI and HDFC

Home loan is given for the purchasing of house. According to RBI maximum 90% have amount given to
bearer from the value of house. Different bank have different policies for home loan.

Policies of SBI for Home loan

 Different rate of interest for other and women.
 20 bps above 1 year MCLR 9.10% per annum for women
 35 bps above 1 year MCLR 9.25% per annum for women
 70 and 90 bps above 1 year MCLR 9.60% and 9.80% per annum respectively for womens.
 25 and 40 bps above 1 year MCLR 9.15% and 9.30% per annum respectively for others.
 75 and 95 bps above 1 yeat MCLR 9.65% and 9.85% per annum respectively for others.

Policies of HDFC for Home Loan

 The minimum rate of interest on home loan is 9.15%.
 The agent should come to home for complete paper work of loan
 Upto 90% investment by the bank

14
No guaranter is required for taking a home loan. But there is one condition you should submit the registered
paper of home to bank till the loan is nill. After completion of payment of loan bank will return your home
paper to you.

There is quite easy to take home loan from HDFC rather than SBI. And Interest rate is also less of HDFC
comparision to SBI.

Taking Home loan is easy in HDFC comparision in SBI. HDFC send the agent to your home for completing
all formalities and paper work and small paper work in HDFC. In SBI the paper work is more and it take
more time to give the loan to the bearer.

4. Vehicle loan or Car loan policy of SBI and HDFC

Vehicle loan is given for purchasing a vehicle whenever is four wheeler or two wheeler. In other words Bank
is financer to purchasing a vehicle. Upto 90% of amount to total value of vehicle is finance by the bank.
Different policies of different bank for vehicle loan.

SBI rules for vehicle or car loan

 Interest rate for vehicle loan is 9.60% floting
 Maximum loan amount eligibility 85%
 Maximum loan tenure 7 years
 Lowest emi per rs 100000 is 1640.

15
HDFC rules for vehicle or car loan
 Interest rate for vehicle loan is 11.81%
 Maximum loan amount eligibility 100%
 Maximum loan tenure 7 years
 No income document scheme

There is no problem to taking a vehicle loan. No guaranter is required. One key of the vehicle is submitted to
the bank and the registered certificate(RC) is hypothentication to bank. The interest is less in SBI rather than
HDFC so the SBI is good for the vehicle loan.

5. Personal loan policy of SBI and HDFC

Unsecured loans (called signature loans) are advanced on the basis of the borrower's credit-history and
ability to repay the loan from personal income. Repayment is usually through fixed amount installments over
a fixed term. Also called consumer loan.

SBI policies for personal loan

 Interest rate for salaried person is 12.50%-16.60% per annum.
 Interest rate for self employed person is 11.20%-16.30% per annum.
 Loan tenure from 6 months to 48 months for salaried person.
 Loan tenure from 12 month to 48 months for self employed.
 Loan amount is minimum 10,000 and maximum 1,000,000 for salaried person.
 Loan amount is minimum 500,000 and maximum 1,000,000,000 for self employeed person

16
HDFC policy for personal loan
 Speedy loan approval
 Convienence service at your door step
 Personal accident cover
 Borrow upto 2,500,000
 Interst rate is 11.61%-19.50% per annum

Personal loan is borrow for different purpose. No fixed purspose for personal loan. There is many paper
work in SBI for taking a personal loan a guarantee is required. In Hdfc bank the bank is insured borrower
from insurance. There is easy to take personal loan from HDFC Bank.

6. Education loan or Student loan Policy in SBI and HDFC

An education loan is credit or debt given by banks and financial services companies to students along with
their parents/relatives as co-borrower to finance the expenses of his or her studies.

SBI policy for education loan

 For loan upto 7.5 lacs the current interest rate is 11.10% per annum
 For loan more than 7.5 lacs current interest rate is 10.75% per annum
 The instalment for loan is start after 2 year of completion of course.
17
  The quarterly interest is charged for education loan
 0.50% per annum concession for girl student

HDFC policy for education loan

 Get upto 1,000,000 as a study loan.
 Interest rate is 11.50 % per annum
 Its a zero-hassless student loan with minimal processing.

Education loan is given by the bank after submitting the prospectus of fees given by the institute or
university for course. The repayment of loan is starting after 2 year of completion of course. But the
quarterly interest is paid during the education time

7. Gold loan policy of SBI and HDFC

Gold loan. A form of debt financing whereby a potential gold producer borrows goldfrom a lending
institution, sells the gold on the open market, uses the cash for mine development, then pays back
the gold from actual mine production.

Policy of SBI for Gold loan

18
 SBI gold loan interest rate is 11.05% per annum
Repayment option for loan is Emi, Bullet repayment, overdraft scheme.
Minimum loan amount is 10,000 and Maximum loan amount is 2,000,000
Loan tenure is 3months to 30 months

Policy of HDFC for Gold loan

HDFC gold loan interst rate is 11.50%-13.00% per annum
Repayment option for loan is EMI, Bullet repayment, overdraft scheme
Loan tenure is 6months to 48 months
Minimum loan amount is 50,000 and Maximum 1,000,000

No gurantee is required for gold loan. The loan is mortgage to bank and collect the rupees. There is easy to
get a gold loan through bank.

8. Fixed deposit policy of SBI and HDFC

A fixed deposit (FD) is a financial instrument provided by banks which provides investors with a higher rate
of interest than a regular savings account, until the given maturity date.

SBI policy for Fixed Deposit

 Fixed deposit is two type one is below 1 crore rupees and second is 1crore and more rupees.
 The interest rate should be different from different type of fixed deposit.
 The interest rate is also changed according to time of fixed deposit.
 0.5% per annum interest rate is more for senior citizen
 Normal rate of interest for less than 1 crore is 7.00% to 7.50% per annum as per time period of fixed
deposit

19
  Normal rate of interest for 1 crore or more is 5.25% to 6.25% per annum as per time period of fixed
deposit

HDFC policy for Fixed deposit

 Fixed deposit is two type one is below 1 crore rupees and second is 1crore and more rupees.
 The interest rate should be different from different type of fixed deposit.
 The interest rate is also changed according to time of fixed deposit.
 Normal rate of interest for less than 1 crore is 7.00% to 7.25% per annum as per time period of fixed
deposit
 Normal rate of interest for 1 crore or more is 5.00% to 6.00% per annum as per time period of fixed
deposit

There is more interest on fixed deposit in SBI comparision to HDFC. And person should choose that were he
will get a more interest so, people is choosed SBI for the fixed deposit and enjoy the more interest rate on
fixed deposit

9. Recurring deposit policy of SBI and HDFC

Recurring Deposit is a special kind of Term Deposit offered by banks in India which help people with
regular incomes to deposit a fixed amount every month into their Recurring Deposit account and earn
interest at the rate applicable to Fixed Deposits.

Recurring deposit policy of SBI

20
  The interest rate more of senior citizen as per normal citizen
 The interest rate is decreases as the deposit time is increases
 The interest rate is vary according to RBI instruction
 Upto 3 years the interest rate is 7.25% per annum. And for senior citizen it is increases 7.50% per
annum.
 More than 3 years and upto 10 years the interest rate is 7.00% per annum. And for senior citizen it is
increases to 7.25% per annum.

Recurring deposit policy of HDFC

 The interest rate more of senior citizen as per normal citizen
 The interest rate is increases as the deposit time is increases
 Upto 9 months the interest rate is 6.50%-6.75% per annum and for senior citizen its increases 7.00%
to 7.25% per annum
 More than 9 months and upto 15 months the interest rate is 7.25% per annum and for senior citizen
its increases 7.75% per annum.

The interest rate is more in HDFC bank but HDFC only upto 15 months can accept the recurring deposit.

In SBI you can deposit upto 10years. The wish of person is that they will saved long time due to time period
the person is used SBI in comparision of HDFC.

10. Net banking and ATM card, Debit Card, Credit card

21
Debit Card: A payment card that deducts money directly from a consumer’s checking account to pay for
a purchase. Debit cards eliminate the need to carry cash or physical checks to make purchases. In addition,
debit cards, also called check cards, offer the convenience of credit cards and many of the same consumer
protections when issued by major payment processors like Visa or MasterCard. Unlike credit cards, they do
not allow the user to go into debt, except perhaps for small negative balances that might be incurred if the
account holder has signed up for overdraft coverage. However, debit cards usually have daily purchase
limits, meaning it may not be possible to make an especially large purchase with a debit card.

Credit Card: A credit card is a card issued by a financial company giving the holder an option to borrow
funds, usually at point of sale. Credit cards charge interest and are primarily used for short-term financing.
Interest usually begins one month after a purchase is made, and borrowing limits are pre-set according to the
individual's credit rating.

Net Banking: Online banking, also known as internet banking, e-banking or virtual banking, is an
electronic payment system that enables customers of a bank or other financial institution to conduct a range
of financial transactions through the financial institution's website.

SBI policy for Net Banking, ATM, Debit card and Credit card
 SBI provide net banking facility of our customers.
 SBI provide ATM cum Debit card facility for the customer
 Rupees 100 charge plus service tax per annum charged for debit card from 2nd year of issuance
 Rupees 204 including service tax per annum is charged for card replacement
 SBI also provide credit card facility to our customer.
 Different customer have different limit in credit card it depend on the salary of the customer.
 Different charges are charged for the different customer for credit card it is depend on the limit of
credit of the customer
 There is no need of account in SBI for a Credit card
22
HDFC policy to Net Banking, ATM, Debit card and Credit card
 HDFC provide Net banking facility to our customers
 HDFC provide ATM cum Debit card to our customers
 Annual charges of debit card is 150 plus taxes
 Replacement charges of debit card is 200 plus taxes
 HDFC also provide credit card facility to the customers
 Bank charged annual charges to the customers for credit card
 The annual charges is different as per the customers credit limit

Both bank have good facility for netbanking and debit card and credit card. The policies are 99% same no
much difference between the policies of HDFC and SBI for Net Banking, Credit Card and Debit Card.

23
 CHAPTER-3
REVIEW OF LITERATURE

A literature review is a text of a scholarly paper, which includes the current knowledge including substantive
findings, as well as theoretical and methodological contributions to a particular topic. Literature reviews are
secondary sources, and do not report new or original experimental work.

Arvind Mahandhwa (ACME Institute of Management and Technology)

Banking is one of the famous industries in the world and every human being is aware from banking. Most
the human being is used the facilities of banking. Arvind Mahandhwa report was available on the internet
where he compare the personal loan policies of SBI and HDFC. In the conclusion of this report found that
both bank are good in term of customer satisfaction has an edge because it is the leading Government
regulated bank in India. HDFC is new to this segment (when compared to SBI). SBI is preferred because it is
a government bank. Procedure of loan financing is easy in HDFC Bank.

Loan Boss Your Financial Solution

Loan boss is a website where you can found all information about the loan policies of the Banks. They
compare the policies of the all banks and facilities given by the bank. According to his comparision private
bank facilities are good compare to government banks. The procedure of loan financing is easy in private
bank. So HDFC bank is more suitable according to policies and procedure but the people of India preferred
SBI because it is a government bank and largest bank of India.

24
 CHAPTER-4
RESEARCH METHODOLOGY

RESEARCH DESIGN
The process used to collect information and data for the purpose of making business decisions. The
methodology may include publication research, interviews, surveys and other research techniques, and could
include both present and historical information.Research comprises "creative work undertaken on a
systematic basis in order to increase the stock of knowledge, including knowledge of humans, culture and
society, and the use of this stock of knowledge to devise new applications. It is used to establish or confirm
facts, reaffirm the results of previous work, solve new or existing problems, support theorems, or develop
new theories. A research project may also be an expansion on past work in the field.Methodology is the
systematic, theoretical analysis of the methods applied to a field of study. Typically, it encompasses
concepts such as paradigm, theoretical model, phases and quantitative or qualitative techniques.
A methodology does not set out to provide solutions - it is, therefore, not the same as a method.

A research design is the plan of a research study. The design of a study defines the study type (descriptive,
correlational, semi-experimental, experimental, review, meta-analytic) and sub-type (e.g., descriptive-
longitudinal case study), research question, hypotheses, independent and dependent variables, experimental
design, and, if applicable, data collection methods and a statistical analysis plan.

The design of study is descriptive.

OBJECTIVES OF THE STUDY

To compare the policies of SBI and HDFC
To compare the policies of Government bank and Private Bank

SIGNIFICANCE OF RESEACH
The purpose of this research is to gather the information about the policies of Banking in India.

State Bank Of India (Government Bank) VS HDFC Bank (Private Bank)

The research will help to people to know about the policies and facilities of the banking. What are the
policies used by the SBI and HDFC. Both banks are under RBI so there is same rules and regulations but the

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policies and facilities are different. The facilities provided by the HDFC is good in compare to SBI. The
people should choose the HDFC for using good facilities.

NATURE OF THE STUDY

Conceptual in nature as it describe the concept related to the comparison. Comparison between policies of
State Bank Of India (SBI) and HDFC Bank

SOURCES OF DATA
The present study is based on secondary data. Majority of secondary data have been collected from different
sources

 Business Magazines
 Internal report of SBI and HDFC
 Internet
 Newspaper

LIMITATIONS OF THE STUDY

 Time constraint
 Based on secondary data
 No control over data collection
 Data may not be very accurate

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 CHAPTER-5
FINDINGS

1. State Bank of India is more prefer by the people of India in comparison to HDFC bank.
2. The facilities of the HDFC is good in compare to SBI.
3. There is no major difference between policies of HDFC and SBI because both are working on the
policies made by the Reserve Bank of India (RBI).
4. State Bank of India is the largest bank of India
5. Procedure of policies is large in SBI in comparison to HDFC procedure of policies.
6. HDFC used home banking through agent sent to the customer home but their is no facility of home
banking in SBI.

CONCLUSION

India that has lot of money with it definitely offers a great potential for the companies where the chances of
outnumbering the urban areas in all aspects are very high. But only those companies would survive at these
places and win over the Delhi consumers who can spend time and money on understanding the needs of
them and come up with innovative ideas.

There is no more difference between the policies of the bank because all bank are under Reserve Bank of
India (RBI). RBI has made same policy for all banks and bank is compulsory to follow the instruction given
by the RBI. But RBI gives right to bank to take some changes in the policies. Interest rate should change but
not more a small point change in interest rate of all banking. Above we see the policies of HDFC and SBI
and we saw that a point margin on the interest rate on saving and borrowing between SBI and HDFC.

Almost all policies are same but some minor difference is in to use of policies or rules to apply the policy.
We found that HDFC bank send his agent to the customer home for solving the problem of customer. The
agent is go to home for opening a account or for senssion of loan. The easy way to banking is used by the
HDFC. But in case of SBI they use genral way of banking they have branch of SBI and all work are doing
there. The main reason of SBI general banking is that SBI is government undertaking bank government have
control on it.

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Most of the people in India have account on SBI because it is the biggest bank of India. SBI have branches
all over in India. In Rural and Urban both area SBI have branch. But HDFC have most concentrate in Urban
area.

Different bank is good in different policies some policies are good by SBI and some are good by HDFC. The
interst on fixed deposit is more in SBI comparison in HDFC bank. And the time period and minimum and
maximum amount of fixed deposit is also good of SBI comparison to HDFC.

The loan facility is good in HDFC the simple procedure of loan. In SBI the procedure of loan is very long it
is not simple to taking a loan in SBI and the main problem is rush in the branch of SBI. You can go any
branch of SBI no should found rush in the branch most government employees salary account in the SBI.
For opening a saving account in SBI you have any gurantee which have account in the SBI it is difficult to
open a account in SBI to those people who has no any known person which have account in SBI.

Finally the conclusion is found that the both bank are good for people and both bank have good policies
according to the RBI guidelines. But from the answers of the questionarie most people have choosed the
State Bank of India(SBI).

Beacause of the SBI is the government bank and HDFC is the Private bank.

SUGGESTIONS

1. State Bank of India improve the facilities provided by bank.

2. HDFC build his image in the mind of the peoples
3. SBI will used Home Banking
4. Both bank will helps peoples

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 BIBLIOGRAPHY

Newspapers
1. The Times Of India
2. Hindustan Times
3. Economics Times

Websites
1. https://en.wikipedia.org/wiki/Public_sector_banks_in_India
2. https://en.wikipedia.org/wiki/Private-sector_banks_in_India
3. https://en.wikipedia.org/wiki/Bank
4. https://en.wikipedia.org/wiki/Banking_in_India
5. https://www.scribd.com/doc/47675185/Comparative-Analysis-of-SBI-HDFC-Bank
6. https://www.onlinesbi.com/
7. http://www.hdfcbank.com/

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