DEFINITION OF BANK

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

or on behalf of, its customers. Its essential duty is the payment

of the orders given on it by the customers, its profit mainly

from the investment of money left unused by them”.

Banking Regulation Act, 1949 (Sec. 5 (c)), has defined the

banking company as, “Banking Company means any company

which transacts business of banking in India”.

According to Section 5B, “banking means the accepting of

deposit of money from the public for the purpose of leading or

investment, which are repayable on demand or otherwise and

are withdraw able by cheque, draft, and order or otherwise.”

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 INTRODUCTION

The origin of the STATE BANK OF INDIA goes back to the first decade of the
nineteenth century with the establishment of the Bank of Calcutta in Calcutta on
2nd June 1806. Three years later the bank received its charter and it was re-
nd
designed as the Bank of Bengal (2 January 1809). A unique institution, it was the
first joint-stock bank of British India sponsored by the Government of Bengal. The
Bank of Bombay (15th April 1840) and the Bank of Madras (1st July 1843)
followed the Bank of Bengal. These three banks remained at the apex of modern
banking in India till their amalgamation as the Imperial Bank of India on 27th
January 1921.
State Bank of India (SBI) is the largest banking and financial services company in
India. It is a state-owned corporation with its headquarters in Mumbai,
Maharashtra. The bank traces its ancestry to British India, through the Imperial
Bank of India, to the founding in 1806 of the Bank of Calcutta, making it the
oldest commercial bank in the Indian Subcontinent. Bank of Madras merged into
the other two presidencies banks—Bank of Calcutta and Bank of Bombay—to form
the Imperial Bank of India, which in turn became the State Bank of India. The
Government nationalized the Imperial Bank of India in 1955, with the Reserve
Bank of India taking a 60% stake, and renamed it the State Bank of India. In
2008, the government took over the stake held by the Reserve Bank of India. SBI
is ranked #292 globally in Fortune Global 500 list in 2013.
SBI provides a range of banking products through its vast network of branches in
India and overseas, including products aimed at non-resident Indians (NRIs). The
State Bank Group, with over 16,000 branches, has the largest banking branch
network in India. SBI has 14 local head offices situated at Chandigarh, Delhi,
Lucknow, Patna, Kolkata, Guwahati (North East Circle), Bhubaneswar, Hyderabad,
Chennai, Trivandrum, Bangalore, Mumbai, Bhopal & Ahmadabad and 57 Zonal

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Offices that are located at important cities throughout the country. It also has
around 130 branches overseas.

JOURNEY AND VISION OF SBI

The State Bank of India, the country’s oldest Bank and a premier in terms of

balance sheet size, number of branches, market capitalization and profits. The bank

is entering into many new businesses with strategic tie ups –

a) Pension Funds,
b) General Insurance,
c) Custodial Services,
d) Private Equity,
e) Mobile Banking,
f) Point of Sale Merchant Acquisition,
g) Advisory Services,
h) Structured products etc.

The Bank is forging ahead with cutting edge technology and innovative new

banking models, to expand its Rural Banking base, looking at the vast untapped

potential in the hinterland and proposes to cover 100,000 villages in the next

years. It is also focusing at the top end of the market, on whole sale banking

capabilities to provide India’s growing large Corporate with a complete array of

products and services. Today, the Bank is the largest provider of infrastructure

debt and the largest arranger of external commercial borrowings in the country.

The Bank is changing outdated front and back end processes to modern customer

friendly processes to help improve the total customer experience. With about 8500

of its own 10000 branches and another 5100 branches of its Associate Banks

already networked, today it offers the largest banking network to the Indian

customer. The Bank is also in the process of providing complete payment solution

to its clientele with its over 8500 ATMs, and other electronic channels such as

Internet banking, debit cards, mobile banking, etc. With four national level Apex

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Training Colleges and 54 learning Centre’s spread all over the country the Bank is

continuously engaged in skill enhancement of its employees.

The bank is also looking at opportunities to grow in size in India as well as

internationally. It presently has 82 foreign offices in 32 countries across the globe.

It has also 7 Subsidiaries in India –

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

POSITION OF THE COMPANY

SBI is a regional banking behemoth and is one of the largest financial institutions in

the world. It has a market share among Indian commercial banks of about 20% in

deposits and loans. The State Bank of India is the 29th most reputed company in

the world according to Forbes. Also, SBI is the only bank featured in the coveted

"top 10 brands of India" list in an annual survey conducted by Brand Finance and

the Economic Times in 2012.The State Bank of India is the largest of the Big Four

banks of India, along with ICICI Bank, Punjab National Bank and HDFC Bank—its

main competitors.

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 SYMBOL AND SLOGAN
 The symbol of the State Bank of India is a circle and a small man at the

center of the circle (and not a key hole). A circle depicts perfection and the

common man being the center of the bank's business.

 Slogans : "Pure banking nothing else"

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

MISSION, VISION & VALUES

VISION
 My SBI.
 My Customer first.
 My SBI: First in customer satisfaction

MISSION
 We will be prompt, polite and proactive with our customers.
 We will speak the language of young India.
 We will create products and services that help our customers achieve their
goals.
 We will go beyond the call of duty to make our customers feel valued.
 We will be of service even in the remotest part of our country.
 We will offer excellence in services to those abroad as much as we do to those
in India.

VALUES
 We will always be honest, transparent and ethical.
 We will respect our customers and fellow associates.
 We will be knowledge driven.
 We will learn and we will share our learning.
 We will never take the easy way out.

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  We will do everything we can to contribute to the community we work in.
 We will nurture pride in India.

BOARD OF DIRECTORS

STATE BANK OF INDIA

th
(As on 30 December, 2016)

Sr. Name Designation Under Section

No. of SBI Act
1955
1 Smt. Arundhati Chairman 19(a)
Bhattacharya
2 Shri B. Sriram Managing 19 (b)
Director
3 Shri Rajnish Kumar Managing 19 (b)
Director
4 Shri P.K. Gupta Managing 19 (b)
Director
5 Shri Dinesh Kumar Managing 19(b)
Khara Director

Smt. Arundhati Bhattacharya (Chairman)

The State Bank of India (SBI) on 7th October 2014 announced that the central
Government of India has appointed Ms. Arundhati Bhattacharya as the
chairperson of the India's largest bank. Succeeding Pratip Chaudhuri who retired
on September 30, she is the first ever lady chairman to head SBI. The 57-year-old
Bhattacharya, the front-runner for the post on account of years of service left,

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was managing director and chief financial officer of the bank prior to her
elevation.

SBI LATEST SCHEMES

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 SERVICES & PRODUCTS

 BANKING SERVICES  NRI SERVICES

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

SBI Retail Banking

 Term Deposits  Educational Loan

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

Services

 Access to multiple users  Utility Bill Payment

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

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 ASSOCIATE BANKS OF SBI

SBI has five associate banks; all use the same logo of a blue circle and all the
associates use the "State Bank of" name, followed by the regional headquarters'
name:
 State Bank of Bikaner & Jaipur
 State Bank of Hyderabad
 State Bank of Mysore
 State Bank of Patiala
 State Bank of Travancore

NON-BANKING SUBSIDIARIES
 SBI Capital Markets Ltd.
 SBI Funds Management Pvt. Ltd.
 SBI Factors & Commercial Services Pvt. Ltd.
 SBI Cards & Payments Services Pvt. Ltd. (SBICPSL)
 SBI DFHI Ltd.
 SBI Life Insurance Company Ltd.
 SBI General Insurance

Competitors and other players in the field:-

Top Performing Public Sector Banks
ANDHRA BANK ALLAHABAD BANK
PUNJAB NATIONAL BANK DENA BANK
VIJAYA BANK
Top Performing Private Sector Banks
HDFC BANK ICICI BANK
AXIS BANK KOTAK MAHINDRA BANK
CENTURION BANK OF PUNJAB
Top Performing Foreign Banks

CITIBANK STANDARD CHARTERED

HSBC BANK ABN AMRO BANK
AMERICAN EXPRESS
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 SHAREHOLDING & LIQUIDITY

Reserve Bank of India is the largest shareholder in the bank with 59.7% stake
followed by overseas investors including GDRs with 19.78% stake as on September
13. Indian financial institutions held 12.3% while Indian public held just 8.2% of
the stock. RBI is the monetary authority and having majority shareholding reflects
conflict of interest. Now the government is rectifying the above error by
transferring RBI’s holding to itself. Post this, SBI will have a further headroom to
dilute the GOI’s stake from 59.7% to 51.0%, which will further improve its CAR
and Tier I ratio.

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

CORPORATE
BANKING

ASSOCIATES
INTER-
&
NATIONAL
SUBSIDIARI
BANKING
ES

STATE BANK
OF INDIA

NATIONAL
TREASURY BANKING
BILL

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FUNCTION AND FACILITIES

SBI RAILWAY CARD

SBI PLATINUM CARD

SBI YATRA CARD

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 SERVICES OF SBI
As on 28th dec.2016

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

TERM DEPOSITS

FEATURES  Period of deposit from 7 days to 10

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

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 premature withdrawal for tenors below 1
year provided these have remained with
the bank for at least 7 days.
 In all other cases above one year, in case
of premature withdrawal, the interest
shall be 0.50% below the rate applicable
for the period the deposit has remained
with the Bank or 0.50% below the
contracted rate, whichever is lower.
However, no interest will be paid if the
deposit remains with the bank for less
than 7 days period.
 Auto renewal is exercised if maturity
instructions are not given
 Nomination facility available and
recommended
 TDS at prevalent rate is deducted at
source if Form 15G/15H not submitted.
 TDS will be deducted when interest
paid or accrued or reinvested per
customer, per branch, exceeds Rs.
10,000 in a financial year.
 The TDR can be linked to any Savings
Bank or Current Account from where you
can withdraw periodical interest. TDS
payments, if any, can be made to the
Government as and when it is due from
linked account.

AUTOMATIC Automatic renewals will take place only where

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

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 MOST IMPORTANT TERMS & CONDITIONS

1. Interest will be paid at the contracted rate irrespective of change in the rate
thereafter.
2. Period of deposit 07 days to 10 years.
3. Loan / overdraft up to 90% of the deposit amount at 0.50% above the TDR
rate.
4. The penalty for premature withdrawal of deposits below Rs 15 lacs for all
tenors will be 0.50% p.a. provided these have remained with the Bank for at
least 7 days. However, for single deposit of Rs 15 lacs and above, there shall be
no penalty for premature withdrawal for tenors below 1 year provided these
have remained with the bank for at least 7 days.
In all other cases above one year, in case of premature withdrawal, the interest
shall be 0.50% below the rate applicable for the period the deposit has
remained with the Bank or 0.50% below the contracted rate, whichever is
lower. However, no interest will be paid if the deposit remains with the bank
for less than 7 days period.
5. Interest can be paid on monthly intervals on discounted rate.
6. Interest can also be paid at Calendar quarter basis.
7. TDS at prevalent Income tax rate is deducted if Form 15G/15H not submitted.
8. Auto renewal is exercised if maturity instructions are not given.

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

MOST IMPORTANT TERMS & CONDITIONS

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

1 Package of exclusive benefits.

2 Low interest rates. Further, we charge interest on a daily reducing
balance!!
3 Low processing charges.

4 No hidden costs or administrative charges.

5 No prepayment penalties. Reduce your interest burden and optimally

utilize your surplus funds by prepaying the loan.
6 Over 13,700 branches nationwide, you can get your Home Loan account
parked at a branch nearest to your present or proposed residence.

SBI NEW CAR LOAN SCHEME

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SBI provide the best car loan scheme for you.
Salient features:
 No Advance EMI;
 Longest repayment tenure (7 years);
 Lowest interest rates ;
 Lowest EMI;
 LTV 85% of 'On Road Price' of car (includes registration, insurance and
Extended Warranty/ Total Service Package/ Annual Maintenance Contract/
cost of accessories), 90% in case of Corporate Salary Package accounts;
 Interest Calculated on Daily Reducing Balance;
 Flexibility of payment of EMI anytime during the month;
 No pre-payment penalty;
 Optional SBI Life cover;
 Overdraft facility available.
For purchase of new passenger cars, Multi Utility Vehicles (MUVs) and SUVs.
Eligibility:
To avail an SBI Car Loan, you should be:
 Individual between the ages of 21-65 years of age.
 Regular employee of State / Central Government, Public Sector
Undertaking, Private Company or a reputed establishment.
 Professionals, self-employed, businessmen, proprietary/partnership firms who
are an income tax assessee.
 Person engaged in Agricultural and allied activities.
Gross Annual Income:-
Salaried:
a) For Central Government, Central Public Sector Undertakings, Defence/
Paramilitary Forces, Railway and State Government Employees who have salary
package accounts with SBI and minimum 3 months salary have regularly come in
these accounts, Employees of Public Sector Banks/ Public Sector Insurance
Companies: Gross Annual Income of applicant and/or co-applicant if any, together
should be Rs. 4, 00,000/- p.a. and above.
b) For Salaried customers other than above mentioned Categories: Gross Annual
Income of applicant and/or co-applicant if any, together should be Rs. 6,
00,000/- p.a. and above.

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Self employed professionals and Proprietary / Partnership Firms:
Net Profit or Gross Taxable income of Rs. 6, 00,000/- p.a. as per ITR after adding
back depreciation and repayment of all existing loans.
Agriculturist: Gross Annual Income of Rs 6, 00,000 and above.
Loan Amount: There is no upper limit for the amount of a car loan. A maximum
loan amount of 48 times of Net Monthly Income or 4 times of Net Annual Income
can be sanctioned.
DOCUMENTS REQUIRED
You would need to submit the following documents along with the completed
application form:
1. Statement of Bank account of the borrower for last 6 months.
2. 2 passport size photographs of borrower(s).
3. A copy of passport /voters ID card/PAN card.
4. Proof of residence.
5. Latest salary-slip showing all deductions
6 I.T. Returns/Form 16: 2 years for salaried employees and 2 years
for professional/self-employed/businessmen duly accepted by the ITO
wherever applicable
7. Proof of official address for non-salaried individuals
MARGIN: 15% of the on road price (which includes vehicle registration charges,
insurance, one-time road tax and accessories).
REPAYMENT
You can enjoy the longest repayment period in the industry with us as long as 84
months.
Reimbursement of costs of car purchased by own sources
We also reimburse finance for the cars purchased out of own funds which are not
more than 3 month old at rate of interest applicable to New Car.

EDUCATION LOANS (SBI STUDENT LOAN SCHEME)

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

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  For studies in India, maximum Rs. 10 lacs
 Studies abroad, maximum Rs. 30 lacs
Processing Fees
 No processing fee/ upfront charges
 Deposit of Rs. 5000/- for education loan for studies abroad which will be
adjusted in the margin money.
Repayment Tenure
Repayment will commence one year after completion of course or 6 months after
securing a job, whichever is earlier.

Maximum Loan Limit Repayment Period

Up to Rs. 4 Lacs Up to 10 years

Above Rs. 4 Lacs and up Up to 10 years

to Rs. 7.5 Lacs

Above Rs. 7.5 Lacs Up to 12 years

SECURITY

Particular Security

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

amount borrower

Parent/ Guardian as co-borrower

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

Above Rs. 7.50 lacsParent/ Guardian as co-borrower

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 loan amount and tangible collateral security

In case of married person, co-obligator can be spouse or the parent(s)/ parents-in-

law.
Margin
 For loans up to Rs.4.0 lacs : No Margin
 For loans above Rs.4.0 lacs:
 Studies in India: 5%
 Studies Abroad: 15%

Documentation Required
 Completed Education Loan Application Form.
 Mark sheets of last qualifying examination
 Proof of admission scholarship, studentship etc
 Schedule of expenses for the specified course
 2 passport size photographs
 PAN Card of the student and the Parent/ Guardian
 Borrower's Bank account statement for the last six months
 Income tax Returns/ IT assessment order, of last 2 yrs (If IT Payee)
 Brief statement of assets and liabilities, of the Co-borrower
 Proof of Income (i.e. Salary slips/ Form 16 etc. if applicable)

SWOT ANALYSIS

STRENGTHS
 SBI is the largest bank in India in terms of market share, revenue and assets.

 The bank has a merged with State Bank of Saurashtra, State bank of Indore

and the bank is planning to go further acquisition in the current FY2014.

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  SBI has recently changed its vision and mission statements showing a sign of

inclination towards new age banking services.

 State Bank of India has 172 foreign offices in 37 countries across the globe.

 SBI has about 25,000 ATMs and SBI group(including associate banks) has

about 45,000 ATMs.

 SBI has 21,500 branches, including branches that belong to its associate

banks.

 SBI includes 99345 offices in India.

WEAKNESS
 Lack of proper technology driven services when compared to private banks.

 Employees show reluctance to solve issues quickly due to higher job security

and customers’ waiting period is long when compared to private banks.

 The bank spends a huge amount on its rented buildings.

 SBI has the largest number of employees in banking sector; hence the bank

spends a considerable amount of its income in employee’s salary

compensation.

 In spite of modernization, the bank still carries the perception of traditional

bank to new age customers.

 SBI fails to attract salary accounts of corporate and many government sector

employees salary accounts are also shifted to private bank for ease of

operations unlike before.

OPPORTUNITIES

 SBI’s merger with five more banks namely State Bank of Hyderabad, State

bank of Patiala, State bank of Bikaner and Jaipur, State of bank of

Travancore and State bank of Mysore are in approval stage.

 Mergers will result in expansion of market share to defend its number one

position.

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  SBI is planning to expand and invest in international operations due to good

inflow of money from Asian Market.

 Since the bank is yet to modernize few of its banking operations, there is a

better scope of using advanced technologies and software to improve

customer relations.

 Young and talented pool of graduates and B schools are in rise to open new

horizon to so called “old government bank”.

THREATS

 Net profit of the year has decline from 9166.05 in the year FY 2013 to

7,370.35 in the year FY2014.

 This shows the reduction in market share to its close competitor ICICI.

 Other private banks like HDFC, AXIS bank etc.

 FDIs allowed in banking sector is increased to 49% , this is a major threat to

SBI as people tend to switch to foreign banks for better facilities and

technologies in banking service.

 Other government banks like PNB, Andhra, and Allahabad bank and Indian

bank are showing.

 Customer prefer to switch to private banks and financial service providers for

loans and mortgages, as SBI involves stringent verification procedures and

take long time for processing.

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

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  Best Online Banking Award, Best Customer Initiative Award & Best Risk
Management Award (Runner Up) by IBA Banking Technology Awards 2010
 The Bank of the year 2009, India (won the second year in a row) by The
Banker Magazine
 Best Bank – Large and Most Socially Responsible Bank by the Business Bank
Awards 2009
 Best Bank 2009 by Business India
 The Most Trusted Brand 2009 by The Economic Times
 Most Preferred Bank & Most preferred Home loan provider by CNBC
 Visionaries of Financial Inclusion By FINO
 According to the Brand Trust Report, 11th most trusted brand in India.
 Technology Bank of the Year by IBA Banking Technology Awards
SBI & India’s economic development
 The formation of the State Bank of India aims at promoting planned
economic development of the country.
 By March 1995 the SBI and its associates over 13,800 small scale business
units and other small operators. The amount of loans outstanding was Rs.9,
200 crores.
 In March 1995, the loans outstanding to farmers rose to over
Rs.7, 450 crores.
 SBI has also introduced Installment Credit schemes. It is designed to assist the
financing equipment or machinery used by small and medium size
manufacturing units.
 Out of its 21,500 branches, nearly two-thirds of these are located in rural
and semi-urban areas with a population of less than 25,000.

Significance and scope

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

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  Consumer perception towards Advance Product
 Consumer awareness about Advance Product scheme and its benefit.
 Aware the Bank about the customer problems, especially in case of
automobile sector.
Research methodology
Research methodology is a methodology for collecting all sorts of information &

data pertaining to the subject in question. The objective is to examine all the issues

involved & conduct situational analysis. The methodology includes the overall

research design, sampling procedure & fieldwork done & finally the analysis

procedure. The methodology used in the study consistent of sample survey using

both primary & secondary data. The primary data has been collected with the help

of questionnaire as well as personal observation book, magazine; journals have been

referred for secondary data. The questionnaire has been drafted & presented by

the researcher himself.

 Sample Size:

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

 Sampling Technique:

To study the Project, a Simple Random sampling technique is used.

 Data Collection: Collection of data is done by Secondary Data & through

Questionnaire i.e., Primary data was collected through Questionnaire.

GRAPHICAL REPRESENTATION OF DATA

Q1. On which bank you depend for your regular transaction?

SBI 60 % (30)

ICICI 33 % (16)

HDFC 5% (3) 25 | P a g e
OTHER 2% (1)

TOTAL NO. OF PEOPLE 50

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

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

YES 85% (43)

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

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

YES 95%(47)
NO 5% (3)
TOTAL NO. OF PEOPLE 50

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

27 | P a g e
Q4. Which bank you prefer for taking loans?

SBI 85% (43.5)

ICICI 7% (5)
HDFC 2% (1)
OTHER 1% (0.5)
TOTAL NO. OF PEOPLE 50

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

28 | P a g e
Q5. If you prefer SBI for taking loan than what influence you to take Loan from

SBI?

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

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

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

29 | P a g e
 HOME LOAN 47% (23)
EDUCATIONAL LOAN 20% (10)
CAR LOAN 15% (7)
PERSONAL LOAN 10% (6)
OTHER 8% (4)
TOTAL NO. OF PEOPLE 50

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

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

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

Good 55% (27)

Excellent 43% (22)

TOTAL NO. OF 50
PEOPLE

30 | P a g e
From this it is clear that the service provide by SBI in its advance product is good

in between the customer. All of them satisfy with the product provide by SBI. 55%

of people said that the service provide by SBI is good & 43% said it is excellent &

just 2% of people said that it is satisfactory.

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

LESS PAPER WORK 3% (2)

ATTRACTIVE INTEREST RATE 35% (17)

TRANSPARENCY 20% (10)

SIMPLE AND FAST 2% (1)

PROCESSING
LONGER REPAYMENT PERIOD 40% (20)

TOTAL NO. OF PEOPLE 50

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

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

32 | P a g e
 DATA ANALYSIS AND INTERPRETATION
1. AUTHORITY AND RESPONSIBILITY
MEANING- ACCORDING TO THIS PRINCIPLE, “AUTHORITY AND
RESPONSIBILITY SHOULD GO HAND IN HAND”

RESULTS OF EMPIRICAL INVESTIGATION

QUESTIONS NO.OF YES NO NO

RESPONDENTS RESPONSE

DO YOU HAVE ALL THE 50 38 07 05

AUTHORITY CONNECTED
WITH YOUR WORK?

EXPLANATION
About the principle of management – ‘authority and responsibility’,
employees of the company were asked to give reply to the question
indicated in the table. A total number 38 responded in favour while
responded with a negative reply. However 05 people did not express any
opinion.

CONCULISION
The figures given in the table are a clear indication of the fact that the
employees have got the authority to discharge their responsibility
regarding the work entrusted to them. It can therefore be said that this
principle of management is being implemented in this company.

2. UNITY OF COMMAND

MEANING - ACCORDING TO THIS PRINCIPLE, “THERE SHOULD BE ONE AND

ONLY ONE BOSS FOR EVERY INDIVIDUAL EMPLOYEES.

RESULTS OF EMPIRICAL INVESTIGATIONS

QUESTIONS NO.OF YES NO NO

RESPONDENTS RESPONSE
DO YOU GET ORDERS 50 43 04 03
FROM MORE THAN ONE
BOSS?

33 | P a g e
EXPALNATION

30 employees of the company were asked to respond about the principle

of management- unity of command, to the question given in the table.
Only a total of 43 employees responded with ‘yes’, while 4 employees
responded negatively. The remaining of the employees did not give any
reply.

CONCULISION

The figures given in the table tell us that out of 30 employees 23

employees said that they received orders from single officer at a time. It
can therefore be said that the company has really understood the
importance of this principle of management.

3. SUBORDINATION OF INDIVIDUAL INTERST TO GENERAL INTEREST

MEANING ACCORDING TO THIS PRINCIPLE, “THE INTERSTS OF AN

ORGINATION SHOULD TAKE PRIORITY OVER THE INTERST OF ANY ONE
INDIVIDUAL EMPLOYEE.”

RESULTS OF EMPIRICAL INVESTIGATIONS

QUESTIONS NO.OF YES NO NO RESPONSE

RESPONDENTS

DO YOU GIVE TOP PRIORITY 50 40 03 07

TO THE INTERESTS Of FTHE
COMPANY?

EXPLANATION
With respect to principle of management ‘subordination of individual
interest to general interest’. 50 employees of the company were asked to
respond. Out of 40 employees responded in favour while the other 3
employees replies in the negative. The remaining 7 employees did not
give response.

CONCLUSION
On the basis of the figures available in the table it can be asserted that
the employees of the company gave priority to general interest over the
individual interest.

34 | P a g e
 4. REMUNERATION TO THE EMPLOYESS

MEANING ACCORDING TO THE PRINCILPE, “THE EMPLOYEES SHOULD BE PAID

FAIR REMUNERATION, WHICH SHOULD GIVE THEM ATLEAST A RESPONSIBLE
STANDARD OF LIVING.”

RESULTS OF EMPIRICAL INVESTIGATIONS

QUESTIONS NO.OF YES NO NO

RESPONDENTS RESPONSE

DO YOU GET 50 50 00 00
REASONABLE
REMUNERATION?

EXPLANATION Regarding the principle of management – remuneration to

employees 50 respondents were asked to express their opinion.
Employees said that they were not getting reasonable remuneration. On
the other hand 50 employees are expressing a positive opinion about it.
CONCULISION
On the basis of the above analysis all of the employees of the company
are happy with the remuneration.

5. CENTARLISATION AND DECENTRALISATION (EFFECTIVE

CENTARLISATION)

MEANING

ACCORDING TO THIS PRINCIPLE, “THE SUPERIORS SHOULD ADOPT EFFECTIVE

CENTARLISATION INSTEAD OF A COMPLETE CENTRALISATION AND COMPLETE
DECENTARLISATION.”

RESULTS OF EMPIRICAL INVESTIGATIONS

QUESTIONS NO.OF YES NO NO

RESPONDENTS RESPONSE

ARE THE DAILY DECISIONS MADE 50 38 04 08

BY THE PERSON CONCERED?

ARE THE MAJOR DECISIONS 50 45 00 05

TAKEN ONLY BY THE HIGHER

35 | P a g e
AUTHORIRIES?

EXPLANATION

Regarding the principle of centralisation and decentralisation all the

employees were asked two questions. First was about the routine
decisions and other was regarding major decisions. A total of 38
employees said that routine decisions were taken by the person
concerned. On the other hand 45 employees said major decisions were
taken by the higher authorities.

CONCULISION

The above analysis clearly shows that the company does not adopt a
complete centralisation. Neither does it do so in the case of
decentralisation. Instead it can be said that company follows then
principle of centralisation in an effective way.

6. SCALAR CHAIN

MEANING ACCORDING TO THIS PRINCIPLE, “ORGINATION SHOULD HAVE A

CHAIN OF AUTHORITY AND COMMUNICATION THAT RUNS FROM TOP TO
BOTTOM AND SHOULD BE FOLLOWED BY MANAGER AND ONE SUNORDINATES.”

RESULTS OF EMPIRICAL INVESTIGATIONS

QUESTIONS NO.OF YES NO NO

RESPONDENTS RESPONSE

DOES THE BOSS DIRECTLY 50 41 06 03

COMMUNICATE WITH YOU?

EXPALNATION All the employees were asked the question given in the
table regarding the principle of scalar chain. A total 41 employees
responded positively while a total of 6 employees answer was in the
negative. The number of employees who did not express any opinion was
only 3 employees.
CONCLUSION

36 | P a g e
The above analysis shows that majority of the employees vouch for the
fact that they have direct communication with the boss of their boss. It
obviously it is an indication of the fact that while communication between
the two persons takes place in this manner a step is being overlooked. It
should be our inevitable conclusion that the principle of scalar chain is
being violated. This situation is certainly not in favour of the company.

7. EQUITY

MEANING -ACCORDING TO THIS PRINCIPLE, “THE MANAGER SHOULD TREAT

THEIR SUBORDINATES AS FAIRLY AS RESPONSIBLE SO THAT THEY DEVELOP A
FEELING OF DEDICATION OF THEIR WORK.”

RESULTS OF EMPIRICAL INVESTIGATIONS

QUESTIONS NO.OF YES NO NO

RESPONDENTS RESPONSE

DOES YOUR COMPANY GIVE 50 37 08 05

EQUAL REMUNERATION TO
ALL THE EMPLOYEES
DOING A SIMILAR JOB?

EXPALNATION-Regarding the principle of equity the table was put to all

the employees. Total of 37 employees responded positively, while 8
employees gave negatively reply. Those who did not give any response
was 05 employees.

CONCULISION- The above analysis clearly establishes the fact that the
questions about the principle of equity elicited a mixed response from the
employees. It can therefore be said that the company is not conscious
about observing this principle of management. The violation of such an
important principle of management gives a rude shock to the efficient and
a hard working employees and they start losing their confidence in the
company.
8. STABILITY OF PERSONNEL

MEANING - ACCORDING TO THIS PRINCIPLE, “THERE SHOULD BE A STABILITY

OF TENURE OF THE EMPLOYEES SO THAT THE WORK CONTINUES
EFFICIENTLY.”

RESULTS OF EMPIRICAL INVESTIGATIONS

37 | P a g e
 QUESTIONS NO.OF YES NO NO
RESPONDENTS RESPONSE

HAVE YOU SERVED THIS 50 45 05 00

COMPANY FOR THAN ONE
YEAR?

EXPLANATION- All the 50 employees of the company were asked the

question given in the table regarding the principle stability of personnel.
More than half the number of employees responded that they have served
the company for more than one year.

CONCLUSION- The above analysis indicates that labour turnover rate in the
company is on the higher side. Therefore Company has taken care of the
stability of the personnel in its own interests.
9. INITIATIVE

MEANING ACCORDING TO THI PRINCIPLE, “EMPLOYEES IN THE ORGINATION

MUST BE GIVEN AN OPPORTUNITY IN MAKING AND EXECUTING PLAN”

RESULTS OF EMPIRICAL INVESTIGATIONS

QUESTIONS NO.OF YES NO NO

RESPONDENTS RESPONSE

DOES YOUR BOSS GIVE 50 45 05 00

IMPORTANCE TO YOUR
SUGGESTIONS?

EXPALNATION- In order to check the implementation of the principle of

‘initiative’ in the company all the 50 employees were asked the question
given in the table. A total of 45 employees were in favour of the question
and 5 employees were in in favour.

38 | P a g e
 CONCLUSION- The above experiment shows that more than fifty percent
employees felt that their opinions were given importance. This helps in
encouraging initiative and confidence of the employees.

EMPIRICAL INVESTIGATION
(BASED ON PERSONAL OBSERVATION)
In this chapter the selected principles of management have been
examined on the basis of personal observation. In other word, this chapter
would test the practical implication of some of the principles of
management given by HENRY FAYOL through personal observation. In
order to check statistics on the basis of personal observation, we made
efforts in two ways. First observation and second in the form of a client.
The results obtained with the help of both the efforts have been briefly
explained as follows:
1. DIVISION OF WORK
Meaning- According to this principle, “as far as possible the whole
work should be divided into small parts and each individual should be
assigned only one part of the work according to his ability and taste
repeatedly so that the benefits of specialisation may be achieved.”
RESULTS OF EMPIRICAL INVESTIGATION
During the course of personal observation regarding the principle of
division of labour whatever was observed in the company may be
described as follows:
 Close to entrance gate the company has located a reception
counter. All the customers were being received here. They were
being told where from they could obtain the items they wanted to
purchase and which section they should visit.
 When the customers reaches the section concerned, the sales
man helps him choosing the items of his need. Here the sales is
finalised. The sales man hands over a token to the customer and
directs him to the payment counter.
 In the meantime the goods are carried to the billing counter.
39 | P a g e
  From the billing counter the goods are sent to the packing
counter.
 From packing counter, the packed material and the bill are sent
to the payment counter, the customer is already at the counter
along with the token. Here the customers hand over the token,
makes the payment and takes delivery of the goods purchased.

CONCLUSION
The above stated facts indicates that the company has divided the total
work into many parts. All the people perform particular job repeatedly.
Therefore, it can be said that the principle of division of work is actually
being observed.
2. DISCIPLINE
Meaning- according to this principle, “the organisational rules and
employment agreement should be obeyed by both the superiors and
subordinates which are necessary for the successful working of the
organisation.”
RESULTS OF EMPIRICAL INVESTIGATION
During the course of personal observation regarding the principle of
discipline the following facts came to light. It was observed that the
employees usually got into personal conservation the moment they
found any opportunity of doing so. They indulged in long conversation
over the telephone in a joyful mood. Sometimes even the customers
were seen being ignored.
CONCLUSION
The above facts highlights the important aspects of their conduct. It
shows that the employees are not fulfilling their commitment with the
company to work honestly for it. Therefore it can be said that this
principle of management ids being violated in the company.
3. UNITY OF DIRECTION
Meaning- According to this principle, “there should be one head and
one plan for a group of activities having the same objective.”
RESULTS OF EMPIRICAL INVESTIGATION

40 | P a g e
 During the course of personal investigation, the following facts came to
our notice regarding the principle of unity of direction. The business of
the company are divided mainly into:
 insurance for different ages group
 insurance for females
 insurance for retirement benefits
 insurance for death benefits
CONCLUSION
The above facts make it clear that the company have different types of
plan for people doing insurance. All the plans have different benefits. This
situation tells that the principle of unity of direction is being implemented
in the company.
4. ORDER
Meaning- According to this principle, “a right should be placed at the
right job and a right thing should be placed at the right place.”
RESULTS OF EMPIRICAL INVESTIGATION
During the course of our investigation regarding the principles of
order the following facts were observed:
 It was found that all the units have arranged the good in a proper
and orderly manner.
 Whenever the material/ goods got scattered because of the rush
of the customers, it was immediately reported in its proper place.
All the employees were observed to be working in their decided
place of work.
CONCLUSION
The above description makes it clear that all the goods are placed in their
decided place. Similarly, all the employees work only on the pre-
determined place of duty. Therefore it can be said that the principle of
order is being observed in the company.
5. ESPRIT DE CORPS
Meaning- According to this principle, “a manger continuously make
efforts to develop a team spirit among the subordinates.”
RESULTS OF EMPIRICAL INVESTIGATION
During the course of personal investigation the following facts with regard
to the principle of esprit de corps came to light:
 Usually the mangers were seen using the words ‘I’ instead of the
word ‘WE’.

41 | P a g e
  It was also observed that the managers did not show any interest
for his subordinates.
CONCLUSION
The above facts make it clear that the managers in the company are the
victims of some sorts of superiority complex, that is the reason as to why
they give importance to the word ‘I’ instead of the word ‘WE’. In the
presence of a situation the question of the feeling of cooperation on the
part of the employees is simply out of question. This principle of
management is surely being violated in the company. This is not a good
situation.

Results of EMPIRICAL INVESTIGATION

based on questionnaire

SL. NAME OF PRINCIPLES OF RESULTS

NO. MANAGEMENT

Favourable Unfavourable

1 AUTHORITY AND RESPONSIBILITY

2 UNITY OF COMMAND

3 SUBORDINATION OF INDIVIDUAL
INTEREST TO GENERAL INTEREST

4 REMUNERATION TO THE EMPLOYESS

5 CENTARLISATION AND
DECENTRALISATION (EFFECTIVE
CENTARLISATION)

6 SCALAR CHAIN

7 EQUITY

8 STABILITY OF PERSONNEL

9 INITIATIVE 42 | P a g e
THE ABOVE TABLE SHOWS THAT THE EMPLOYEES EXPRESSED
THEIR OPINION ON 9 PRINCIPLES OF MANAGEMENT. OUT OF 9
PRINCIPLES THEY RESPONDED FAVOURABLY ABOUT 6
PRINCIPLES WHILE THEY RESPONDED WITH A NEGATIVE REPLY
IN CASE OF THE REMAINING 3 PRINCIPLES.

Results of EMPIRICAL INVESTIGATION based on

personal observation

SL. NAME OF PRINCIPLES OF RESULTS

NO. MANAGEMENT

FAVOURABL UNFAVOURABL
E E

1 DIVISION OF WORK

2 DISCIPLINE

3 UNITY OF DIRECTION

4 ORDER

5 ESPRIT DE CORPS

THE ABOVE TABLE MAKES IT CLEAR THAT FAVOURABLE OPINION

CANBE EXPREESED WITH REGARD TO 3 PRINCIPLES OUT OF A

TOTAL OF 5, WHILE THE OTHER 2 PRINCIPLES GET NEGATIVE

OPINION.

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

REASONS FOR HIGHLY USE OF SBI ADVANCE PRODUCT:

 LESS PAPER WORK

 ATTRACTIVE INTEREST RATES

44 | P a g e
  TRANSPARENCY
 SIMPLE & FAST PROCESSING
 LONGER REPAYMENT PERIOD
 QUICK PROCESSING

Demonetization Effect
Cash withdrawal and deposit rules as of 2 January
The Reserve Bank of India (RBI) on Friday, post the deadline for banks to
accept deposits in old Rs500 and Rs1,000 currency notes, increased the
limit for daily cash withdrawal from ATMs to Rs4,500 from the current
Rs2,500.

After Friday’s deadline, the old notes can only be deposited in RBI till 31
March 2017. Just two days before the deadline, the Narendra Modi
government cleared a draft ordinance to end the legal liability of
demonetized notes. Prime Minister Modi announced a range of schemes
targeting the poor, lower middle class, senior citizens and small
businessmen in New Year’s Eve speech following demonetization. The PM
had asked people to give him 50 days to lessen pain after his surprise
announcement on 8 November to demonetize Rs500 and Rs1, 000 currency
notes. The government is proposing a staggered relaxation of existing
restrictions on cash withdrawals from banks after 30 December.

On day 50 of the demonetization drive, here is a recap of rules governing

cash deposits and withdrawals:

Cash withdrawal limit: For saving bank account customers, cash

withdrawal limit from ATMs will be increased to Rs4, 500 per day from the
current Rs2, 500 from 1 January. However, there has been no change in
the weekly withdrawal limit, which stands at Rs24, 000, including from
ATMs, for individuals (Rs50, 000 in case of small traders). Banks to collect
PAN details of customers depositing more than Rs50, 000 in bank accounts
not seeded with PAN. Withdrawal from Jan Dhan accounts limited to Rs10,
000 per month for fully KYC compliant customers. For none or partial KYC
45 | P a g e
compliant account-holders, it stands at Rs5, 000 within the overall Rs10,
000 monthly ceiling. In case of KYC compliant Jan Dhan accounts, some
amount of discretion to withdraw in excess of the monthly limit is given to
branch managers subject to regulations.

■ Old Rs500, Rs1, 000 notes: They are no longer legal tender and can
be deposited only in banks or ATMs or post-offices only till 30 December.
The exchange facility had been stopped at bank branches with effect from
November 25. From 31 December, they can be deposited or exchanged
only at RBI offices subject to regulations till 31 March 2017. The
government’s Specified Bank Notes Cessation of Liabilities Ordinance,
approved on Wednesday by the Cabinet, has made holding of more than
10 junked Rs500 and Rs1,000 currency notes a penal offence punishable
with a minimum Rs10,000 fine, but the harsher four-year jail term has
been dropped.

Non-resident Indians (NRIs) can deposit old currency notes, up to a

maximum of Rs25, 000, till 30 June. The same limit will apply to resident
Indians who were abroad between 8 November and 30 December, but they
will have to turn in the old notes by 31 March at designated offices of RBI.

■ E-wallets: RBI has kept limits on prepaid payments services providers

or e-wallets to load up to Rs20, 000, instead of Rs10, 000 before. The
merchants can transfer funds from such PPIs to their own linked bank
accounts up to Rs50, 000 per month, without any limit per transaction.

■ Businessmen, traders: For current account holders, it stands up to Rs50,

000 a week, all in Rs2, 000 denomination notes. Merchants can enable
withdrawal facility of up to Rs2, 000 per day at their point of sale
terminals, without any charges levied. Traders registered with the APMC
and mandis can withdraw up to Rs50, 000 a week from their current
accounts.

■ Farmers: Additional 60 days grace period for farmers to repay their crop
loans and avail 3% interest subvention. Farmers allowed to withdraw up to
Rs 25,000 a week from their loan or deposit accounts. Old currency notes
can be used for making payments towards purchase of seeds from the

46 | P a g e
centers, units or outlets belonging to the Central or State Governments,
Public Sector Undertakings, National or State Seeds Corporations, Central
or State Agricultural Universities and the Indian Council of Agricultural
Research, on production of proof of identity.

■ Foreigners: Weekly limit of Rs 5,000 on exchange for foreign tourists.

■ Cashless incentives: Banks to waive off ATM charges on withdrawals

between 10 November and 30 December. In addition, a slew of measures
to incentivize cashless payments at petrol pumps, railway tickets,
insurance schemes, toll plazas and other services have been adopted.

Suggestion & Recommendation

Recommendation:

 Customer awareness programmed is required so that more people should

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

47 | P a g e
  Special scheme should be implemented to encourage both customer and
agents.
 The bank should increase the period for repayment of loan.
 SBI should more focus on Retaining existing customers.
 SBI must focus on Segmentation based on customer knowledge Product
offering based on customer demand.
 SBI must take feedbacks of customers regarding features & services.

SUGGESTIONS GIVEN BY THE CONSUMERS AT THE

TIME OF SURVEY:

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

 Education loan should be providing to private college also which is

not under AICTE or any kind of University.

 SBI should take steps to solve customer problems immediately.

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

convince the people about different advance product.

 Loan sanction date should be according to customer convenient.

 A customer awareness programmed should be taking place in

rural area.

48 | P a g e
 Conclusion
From the analysis part it can be conclude that customers have a good respond

st
towards SBI advance products in MAHAGAMA. SBI is in 1 position having large

number of customers & providing good services to them. The bank has a wide

customer base, so the bank should concentrate on this to retain these customers.

In present scenario SBI is the largest advance product issuer in India. Within a very

short period of time the achievement made by SBI is excellent, what a normal

bank cannot expect, but it is being done by SBI. It happens due to employee

dedication towards the organization, fastest growing Indian economy, & brand

image.

To be the largest advance product issuer, SBI should focus on-

 Launch Innovative product

 Customized advance products
 Better customer services
 Fastest customers problem solving techniques
 Customer retention

Apart from all the above, SBI believe in providing good customer services to their

customers which is a key factor for success in future.

49 | P a g e
Name - _____________________________________
Occupation-__________________________________
Contact Detail -_______________________________

Seria Questions Ye No No. No. of

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

2 Are you aware of products & 43 7 0 50

services provided by SBI?

3 If yes are you aware of the 47 3 0 50

advance products (Loan
segments) of SBI?
4 Which bank you prefer for 50 0 0 50
taking loans?
a) SBI
b) ICICI Bank
c) HDFC Bank
d) Other Bank , Specify
(_____________)
5 If you prefer SBI for taking 45 3 2 50
loan than what influence you
to take Loan from SBI?

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6 Do you have any idea about 45 1 4 50
internet banking and mobile
banking facility?

7 Which loan product of SBI 50 0 0 50

you have used?
a) Home Loan
b) Education Loan
c) Car Loan
d) Personal Loan
e) Other Loans, Specify
( ______________ )

8 What do you feel about the 50 0 0 50

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

9 Which features you like most 50 0 0 50

in Loan segments of SBI?
a) Less paper work
b) Attractive interest rate
c) Transparency
d) Simple & fast processing
e) Flexibility to choose an
EMI base loan or an
overdraf
f ) Longer tenure lone for
ease of repayment
g) Specially design product
for self employed
h) Any other feature ,
specify ( _____________ )

10 Any suggestion you want to 25 22 28 50

give for the betterment of SBI
advance product.
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INTERNET:
 www.google.co.in
 www.sbi.com
 www.sbi.co.in
 www.bnet.com

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