Department of Business Management

PREFACE

The liberalization of the Indian insurance sector has been the subject of much heated
debate for some years. The policy makers where in the catch 22 situation wherein for
one they wanted competition, development and growth of this insurance sector which
is extremely essential for channeling the investments in to the infrastructure sector. At
the other end the policy makers had the fears that the insurance premium, which are
substantial, would seep out of the country; and wanted to have a cautious approach of
opening for foreign participation in the sector.

As one of the rare occurrences the entire debate was put on the back burner and the
IRDA saw the day of the light thanks to the maturing polity emerging consensus among
factions of different political parties. Though some changes and some restrictive clauses
as regards to the foreign participation were included the IRDA has opened the doors for
the private entry into insurance.

The large scale of operations, public sector bureaucracies and cumbersome procedures
hampers nationalized insurers. Therefore, potential private entrants expect to score in
the areas of customer service, speed and flexibility. They point out that their entry will
mean better products and choice for the consumer. The critics counter that the benefit
will be slim, because new players will concentrate on affluent, urban customers as
foreign banks did until recently. This seems to be a logical strategy. Start-up costs-such
as those of setting up a conventional distribution network-are large and high-end niches
offer better returns. However, the middle-market segment too has great potential. Since
insurance is a volumes game. Therefore, private insurers would be best served by a
middle-market approach, targeting customer segments that are currently untapped
 ACKNOWLEDGEMENT
Preparing a project of this nature is an arduous task and I was fortunate enough
to get support from a large number o persons. I wish to express my deep sense of
gratitude to all those who generously helped in successful completion of this report by
sharing their invaluable time and knowledge.

It is my proud and previledge to express my deep regards to Respected HOD Sir Dr

Jayant Dubey, Head of Department & My Guide Miss Preeti Kashyap Department of
Business Management , BTIRT Sagar for allowing me to undertake this project.

I feel extremely exhilarated to have completed this project under the able and
inspiring guidance of Dr. Jayant Dubey he rendered me all possible help me guidance
while reviewing the manuscript in finalising the report.

I also extend my deep regards to my teachers , family members , friends and all
those whose encouragement has infused courage in me to complete to work
successfully.

(JAYA PARASHAR )
MBA IV SEM.

2
 DELCLARATION BY THE CANDIDATE
Date :

I declare that the project report titled SUMMER TRAINING PROJECT

ON SBI YONO on Market Segmentation is nay own work conducted under

the supervision of Miss Preeti Kashyap Department of Business Management

BTIRT Sagar. To the best of my knowledge the report does not contain any

work , which has been submitted for the award of any degree , anywhere.

JAYA PARASHAR
MBA IV SEM.

3
 CERTIFICATE
The project report titled SBI YONO been prepared by JAYA

PARASHAR MBA IV SEM., under the guidance and supervision of Miss Preeti

Kashyap for the partial fulfillment of the Degree of MBA

Signature of the Signature of the Signature of the

Supervisor Head of the Department Examiner

TABLE OF CONTENTS

S.NO TITLE

1. AKNOWLEDGEMENT

2. LIST OF CHARTS

3. INTRODUCTION

 Brief profile of student

 Brief profile of project mentor

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  Brief profile of organization

 Nature of project

 Brief objectives/responsibilities assigned by the project mentor

4. FRAMEWORK OF STUDY

 Theoretical framework

 Specific objectives of the product

 Scope of study

 Limitation of study

 Period of study

5. METHODOLOGY AND ANALYSIS

Methodology

Analysis

Observation

Analysis

Conclusion

Recommendations

LIST OF CHARTS

1. Charts related to :- INCOME ,REVENUE & ASSETS

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 5.97%
6.47%1.79%
6.21%

19.83% 59.73%

Reserve Bank of India

Non-residents (FIIs, OCBs, NRIs)
Banks, FIs including insurance companies
Mutual funds/UTI
Domestic companies/private corporate bodies/trusts
Resident individuals

REVENUE BY DIVISION

6
ASSETS

STOCK PERFORMANCE

7
 INTRODUCTION

OBJECTIVE: -To work in a challenging environment in an organization with good prospects that will help

me in enhancing my skills along with the growth of the organization

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  PROFILE OF AN ORGANIZATION

STATE BANK OF INDIA is a multinational banking and financial services company based in India. It is a

Government-owned Corporation with its headquarters in Mumbai, Maharashtra as of December

2012, it had assets of US$ 501 billion and 20,193 branches, including 157 foreign offices, making it

The largest banking and financial services company in India by assets

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 presidency banks- Bank of Calcutta and

Bank of Bombay. To form Imperial Bank of India, which is turn became a state bank of India.

Government of India nationalized the State Bank of India in 1955, with Reserve Bank of India taking

A 60% stake, and renamed it the State Bank of India. In 2008, the government took over the stake

Held by the Reserve Bank of India.

SBI provides a range of banking products through its network of branches in India and

Overseas, including products aimed at non-residents Indian’s. SBI has 14 regional huts and 57 zonal

Offices that is located at important cities throughout the country.

In addition to banking the company, through its various subsidiaries, provides a range of

Financial services, which include life insurance, merchant banking, custodial services, general

Insurance (non-life insurance) and primary dealership in the money market. Its segment include

Treasury, which includes investment portfolio and trading in foreign exchange contracts and

Derivative contracts, corporate/wholesale banking, which comprises lending activities of Corporate

Accounts Group and Stressed Assets Management Group, Retail Banking which comprises of

Branches in National Banking Group, includes personal banking activities, including lending to

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 Corporate customer and other Banking business

MANAGEMENT

The State Bank of India has 15 Members on its Board of Directors, who are responsible for the
management of the bank’s business. The board in addition to monitoring corporate performance also
carries out functions such as approving the business plan, reviewing and approving the annual budgets
and borrowing limits and fixing exposure limits. MR. PRATIP CHAUDHRI is the Chairman of the Bank.

Under Section of
No. Name Designation
SBI Act 1955
1 Shri Pratip Chaudhri Chairman 19 (a)
Managing Director
2 Shri Hemant G. Contractor 19 (b)
3 Shri Diwakar Gupta Managing Director 19 (b)
4 Shri A. Krishna Kumar Managing Director 19 (b)
5 Shri S.Vishvanathan Managing Director 19 (b)
6 Shri S. Venkatachalam Director 19 (c)
7 Shri D. Sundaram Director 19 (c)
8 Shri Parthasarathy Iyengar Director 19 (c)
9 Shri Thomas Mathew Director 19 (c)
Shri Jyoti Bhushan Workmen Employee
10 19 (ca)
Mohapatra Director
Officer Employee
11 Shri S.K. Mukherjee 19 (cb)
Director
12 Dr. Rajiv Kumar Director 19 (d)
13 Shri Deepak Amin Director 19 (d)
Shri Harichandra Bahadur
14 Director 19 (d)
Singh
15 Shri Rajiv Takru Director 19 (e)
16 Dr. Urjit R. Patel Director 19

EVOLUTION OF STATE BANK OF INDIA

The origin of the STATE BANK OF INDIA goes back to the first decade of the nineteenth century

with the establishment of the State bank India in Calcutta on 2 June 1806. Three years later the state

bank of India received its charter and was re-designed as the state bank of Bengal (2 January 1809). A

10
unique institution, it was the first joint-stock state bank of India of British India sponsored by the

Government of Bengal. The state bank of Bombay (15 April 1840) and state bank of Madras (1 July 1843)

followed the state bank of Bengal. These three banks remained at the apex of modern banking in India

till their amalgamation as the Imperial bank on 27 January 1921.

Primarily Anglo-Indian creations, the three presidency banks came into existence either as a

result of the compulsions of imperial bank or by the felt needs of local European commerce and were

not imposed from outside in an arbitrary manner to modernize India's economy. Their evolution was,

however, shaped by ideas culled from similar developments in Europe and England, and was influenced

by changes occurring in the structure of both the local trading environment and those in the relations of

the Indian economy to the economy of Europe and the global economic framework

BANK OF BENGAL, H.O

ESTABLISHMENT

The establishment of the state bank of Bengal marked the advent of limited liability, joint-stock banking

in India. So was the associated innovation in banking, viz. the decision to allow the State Bank of Bengal

to issue notes, which would be accepted for payment of public revenues within a restricted geographical

area. This right of note issue was very valuable not only for the State Bank of Bengal but also its two

siblings, the Banks of Bombay and Madras. It meant an accretion to the capital of the banks, a capital on

which the proprietors did not have to pay any interest. The concept of deposit banking was also an

11
innovation because the practice of accepting money for safekeeping (and in some cases, even

investment on behalf of the clients) by the indigenous bankers had not spread as a general habit in most

parts of India. But, for a long time, and especially up to the time that the three presidency banks had a

right of note issue, State Bank of India notes and government balances made up the bulk of the

invertible resources of the banks.

The three banks were governed by royal charters, which were revised from time to time. Each

charter provided for a share capital, four-fifth of which were privately subscribed and the rest owned by

the provincial government. The members of the board of directors, which managed the affairs of each

bank, were mostly proprietary directors representing the large European managing agency houses in

India. The rest were government nominees, invariably civil servants, one of whom was elected as the

president of the board.

Group Photograph of Central Board (1921)

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 OLD BANK OF BENGAL

MAJOR CHANGE IN THE CONDITIONS

A major change in the conditions of operation of the Banks of Bengal, Bombay and Madras

occurred after 1860. With the passing of the Paper state bank of India Act of 1861, the right of note issue

of the presidency banks was abolished and the Government of India assumed from 1 March 1862 the

sole power of issuing paper state bank of India within British India. The task of management and

circulation of the new state bank of India notes was conferred on the presidency banks and the

Government undertook to transfer the Treasury balances to the banks at places where the banks would

open branches. None of the three banks had tilled then any branches (except the sole attempt and that

to a short-lived one by the state bank of Bengal at Mirzapur (in 1839) although the charters had given

them such authority. But as soon as the three presidency bands were assured of the free use of

government Treasury balances at places where they would open branches, they embarked on branch

expansion at a rapid pace. By 1876, the branches, agencies and sub agencies of the three presidency

banks covered most of the major parts and many of the inland trade centers in India. While state bank

13
of Bengal had eighteen branches including its head office, seasonal branches and sub agencies, the Banks

of Bombay and Madras had fifteen each.

IMPERIAL BANK

The Imperial Bank of India during the three and a half decades of its existence recorded an impressive

growth in terms of offices, reserves, deposits, investments and advances, the increases in some cases

amounting to more than six-fold. The advances, the increases in some cases amounting to more than six-

fold. The State Bank of India status and security inherited from its forerunners no doubt provided a firm

and durable platform. But the lofty traditions of banking which the Imperial Bank of India consistently

maintained and the high standard of integrity it observed in its operations inspired confidence in its

depositors that no other State Bank in India could perhaps then equal.

. Stamp of Imperial bank of India

DIFFERENT PRODUCTS OF SBI

DEPOSIT:-
Saving account, fixed deposit, security deposits, recurring deposit, tax-saver fixed deposit,

Advantage woman savings account, rural savings account, people’s savings account, freedom

Savings Account, tax saver fixed deposit, salary account, and rural savings account

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LOANS:-

Home loans, loan against property, personal loans, car loan, loans against securities, two wheeler,

Pre-approved loans, farmer finance, business installment loans, and flexi cash .

DIFFERENT CARDS&CREDIT CARDS:-

Consumer Cards, SBI International cards, life plus senior citizens, SBI Gold Cards, Travel card, SBI

Gold Master Cards, Debit Cards, Your City Your Cards, Commercial Cards, corporate cards,

Partnership cards, purchase card, SBI employee cards, distribution cards, business cards, SBI

Advantage card.

 NATURE OF THE PROJECT

The project is based on EXPLORATORY RESEARCH DESIGN. It helps in providing a sharper focus on

The situation and clear definition of the problem at hand. It emphasizes a discovery of ideas and

Possible inside that help in identifying areas of further study. The project provides an opportunity to

Study customer satisfaction and play a leading role in the expanding wholesale medicine market

Lucknow.

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AREA OF OPERATION: Aminabad, Gautama budhmarg, Latouche road, Kaiser Bag, Lalbag, Medical
College Chowk

Above the areas being covered. A feedback form is being filled by the customers which provides
information like-

 Name of the unit/firm

 Date of establishment

 Type of business/industry

 Address of unit/firm

 Unit on rent/lease/owner shop

 Mobile no.

Telephone no.

E-mail ID

 Banking with

 Credit facility availed

 If yes, name of the bank

 Type of credit facility

 Amount of loan availed

 If no, type of credit facility required

 Willing to take loan from SBI

 Amount of loan required

 Impression about SBI

The feedback form filled by customers provides us information about the wholesale medicine market in
Lucknow and also includes recommendation and suggestion regarding the same.

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  OBJECTIVE OF THE STUDY

To retain the Bank’s Position as the Premier Indian Whole Sale Medicine Market at Lucknow Services

Group, with world class standards and significant Global business, committed to excellence in customer,

shareholder and employee satisfaction and to play a leading role in the expanding and diversifying

Whole Sale Medicine Market at Lucknow services sector while continuing emphasis, on its

development banking role.

RESPONSIBILITIES ASSIGNED BY THE PROJECT MENTOR

Our project mentor gives us the responsibility to take the surveys of wholesale medicine market

Which are in various areas in Lucknow

 To know the nature of the market for acquiring financial services.

 To enumerate the various players in the market

 To enumerate the various reasons for customers opting SBI facilities

 To find out the awareness/knowledge level of customers on the concept by the STATE
BANK OF INDIA

NEED OF THE STUDY

As the banking sector is the fastest growing sectors in current Business World. So it is necessary to have

In-depth Knowledge of BANK Products provided by them. And to check Segment Wise Penetration and

use of Direct Banking Channels.

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THEORETICAL STUDY

MAJOR COMPETITOR

State bank of India at Lucknow has been facing great rivalry and major competition with other

public sector banks and some of private commercial banks. State bank of India has many banks

as art rival. Some of its art rival.

List of major competitors of SBI

I. ICICI Bank

II. Bank of Baroda

III. Canara Bank

IV. Punjab National Bank

V. Union bank of India

VI. Central bank of India

VII. HDFC Bank

VIII. Oriental bank of Commerce.

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Here especially some of the public sector and private sector banks are giving hardcore

competition to the state bank of India. So let us have some of the best banks which is also

mentioned above and mentioned below in detail.

ICICI BANK

ICICI bank at Lucknow stands for Industrial Credit and Investment Corporation of India. This

ICICI bank at Lucknow is one of the heavy weight banks of private sector of India. It is providing

the core competition to the state bank of India at Lucknow of India. Especially in lending

money, Investment.

But in profit making state bank of India is standing ahead. And when and where social

responsibility of concern state bank of India is heading high than any other banks in India

HDFC BANK

HDFC bank stands for Housing Development Financing Corporation ltd. This is also one of the

leading banks of India in private sector. This bank is also providing hardcore competition to all

the banks as well as state bank of India

But we mention earlier that state bank of India is ahead in banking India. So HDFC has to work

hard to reach at the milestone achieved by state bank of India.

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Bank OF BARODA

Bank of Baroda is also one of the leading public sector banks in India.. This PSU is also providing

the tough competition to all other banks in India. The BOB at lucknow is very renowned banks

of India today. It is very changed and very professionally working public sector banks

BOB has got professional in recent time so. It has to work very hard to achieve position and

reputation which are achieved by State bank of India.

Human resource

(1) Learning & Development

State bank of India at lucknow has taken up several key initiatives to motivate and retain its

manpower. In order to channelize the energy created by the Parivartan campaign, the State bank

of India at Lucknow has launched a Landmark exercise for creation of the new Vision Mission &

Values statement which will be in place shortly. Young officers are being encouraged to take-up

management education by way of sponsorship tie-up with the S. P. Jain Institute of Management.

50 officers have been enrolled in the programmed on a trial basis.SBI at lucknow is strong in the

areas of training & development through 4 apex level training colleges and 45 learning centres

across the country. ‘e-learning’ project has been launched to enable anywhere, anytime learning.

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(2) HRMS

For leveraging technology in employee management area, the state bank of India has started

automation of its HR processes through SAP-ERP-HRMS software. Once fully implemented, it

will not only create a central repository of all employees data but also will make available a

variety of services, like online request submission and viewing of individual data etc. to all the

employees across the State Bank of India group on an online ‘real time’ basis. HRMS will bring

efficiency in HR operations and help the Management in making employee related decisions

faster. Pensioners of SBI, IBI and Associate Banks will also form a part of this initiative and

their pension will be processed through HRMS.

(3) Personnel Management

State bank of India has launched Performance Linked Incentive Scheme for the Branch

managers/AGMs(Region)/ DGMs(Module) and Team Incentive Scheme for the staff members of

the Branch. The incentive scheme was launched with the aim of enthusing and motivating the

staff members of the Branch so that the state bank of India is placed in a position to face the

competition unleashed due to liberalization of economy and maintain its lead over others. The

scheme has been successful in enthusing the staff and garnering Business for the Bank.

(4) Employees Share Purchase Scheme (SBI ESPS-2008)

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State bank of India also launched Employees Share Purchase Scheme along with the Rights issue

with the Objective of providing incentive to Eligible Employees, to stimulate their efforts

towards the continued success of state bank of India and to provide a Means to attract, reward

and retain talent in the Bank, to reward eligible employees as also to encourage equity ownership

by them. The price was fixed at Rs.1590/- (the face value of 1 share is Rs.10/-) per equity share.

The Scheme Opened on 28.03.2008 and closed on 30.04.2008.

(5) Industrial Relations

 A number of HR initiatives such a payment of Performance linked incentives to staff,

rationalization of promotion policies and improvement in various staff loan schemes were taken

up during the year. Such initiatives have helped in increasing the motivation level of staff

significantly.

 To meet requirement of staff for an ongoing branch expansion programme, separate

recruitment exercises were undertaken to recruit clerical staff for metro/urban centers, rural/semi

urban centers and also for Marketing. This also helped in reducing the age profile of staff and

posting of younger staff at the front line.

 The process of consultation and discussion with both the staff and officers federations

continued during the year.

 The industrial relations climate of state bank of india remained cordial during the year.

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(6) Staff Strength

State bank of India had a total strength of 1, 79,205 on the 31 st March, 2008. Of this, 32.23% are

officers, 42.87% clerical staff and the remaining 24.90% were sub-staff.

(7) Implementation of Persons with disabilities (PWD) Act 1995

Our State Bank of India provides reservation to persons with disabilities (PWDs) as per the

guidelines of the Government of India and section 33 of the PWD Act 1995. The total number of

persons with disabilities who were employed as on 31.03.2008 was as follows:

(8) Representation of Scheduled Castes and Scheduled Tribes

As on the 31st March, 2008, 34802 (19.42%) of the Bank’s total staff strength, belonged to

Scheduled Caste and 11460 (6.30%) belonged to Scheduled Tribes. In order to effectively

redress the grievances of the SC/ST employees, Liaison Officers have been designated at all

administrative offices of the Bank. Senior officials of the State bank of India hold regular

meetings at periodic intervals with the representatives of SC/ST Welfare Federation and SC/ST

Welfare Association at Corporate Centre, LHOs and Zonal Offices. The state bank of India

conducts workshops on reservation policy for SCs/STs/OBCs. So also, pre recruitment and pre-

promotion training programmes are conducted by the State bank of India at Lucknow to enable

SC/ST candidates to achieve the prescribed standards to effectively compete with other

candidates.

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24
FINANCIAL PERFORMANCE OF SBI

Agenda

 Highlights

 Income

 Revenue

 Balance Sheet

 Assets

 Stock Performance

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Highlights

(in millions) 2010 2011

Net revenues $x,xxx $x,xxx

Net income xxx xxx

Earnings per share xxx xxx

Return on net revenues xx% xx%

Cash and s/t investments Xxx xxx

Total Assets $xxx $xxx

Stockholder’s equity xxxx xxxx

Income

Net Net Earning

Revenues Income Share

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27
Balance Sheet

1999 2000

Assets $x,xxx $x,xxx

– Cash and short-term investments xxx xxx

– Accounts receivable xxx xxx

– Inventories xxx xxx

– Other

Total Assets $x,xxx $x,xxx

Liabilities $x,xxx $x,xxx

– Accounts payable xxx xxx

– Accrued compensation xxx xxx

– Income taxes payable xxx xxx

– Other

Total Liabilities $x,xxx $x,xxx

Shareholder’s Equity $x,xxx $x,xxx

Assets

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Stock Performance

29
 SWOT ANALYSIS

 S Strength

30
  W Weakness

 O Opportunity

 T Threat

 Strength

 Years of Experience…………..Century

 Experienced Employee

 Large Network

 Huge Whole Sale Medicine Market for Financing Opportunities by SBI at Lucknow

Network

 Government Support

 Safety and Security of Money

 Transparency in Charges

 Large income from Loan interest

 Less interest rate of loan with low charges

 Weakness

 Lack of Young Employee

 Rigid work culture

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 Physical environment & Ambience

 Excessive Documentation

 Bureaucracy

 Less knowledgeable employee

 Less control on employee

 Poor technology

 Poor recovery system

 Opportunity

 Constant fear in the minds of customers towards private bank.

 Even expanding rural, urban & International Market.

 Fraud and cheating with customer from private banking.

 Dissatisfy from private banking.

 So much hidden charges of private banks.

 Threats

 Shifting customer’s preference towards private banks.

 Private Whole Sale Medicine Market at Lucknow providing more facilities at lower

charges.

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 Quick Dynamic employees and greater technological product.

Young stare are attract towards state bank of India because of speedy and upgrade technology

 LIMITATION OF STUDY

 As we are short of time having only 6-8 weeks for the summer training so we can’t do a
deep study.

 less number of feedbacks is the limitation of this study

 PERIOD OF STUDY

14TH JUNE TO 14TH AUGUST

 SUGGESTION

 Proper Co Ordination and Communication between state bank of India and Customer

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  Time to time follow up to customer and their Guarantors

 Properly check all the documents

 Proper Valuation of their Assets

 Strict to recovery Steps

 When first installment will be due at that time state bank of India have to inform to

customer regarding his due installment

 Whole Terms and Condition explain to customer at the time of sanction the loan

 Advance reminder for repayment to customer

 Give target to recover the debt amount.

 Provide Commission as a motivation to employee who put there effort for reduce the

NPAs.

CONCLUSION

We are happy to getting opportunity to part of State bank of India at Lucknow and also get opportunity

to tackle the NPAs Account.

During Our Summer Training we meet 150 clients of state bank of India and get their opinion their

problems. So, According to that duration we would like to conclude that, Account become NPAs in

34
many way sometimes, Sometimes technical problem, Sometimes personal problem but these all

problem will be solved by few precautions which earlier we mentioned. In any state bank of India

institution, NPAs are inevitable in the loan portfolio. But efforts should be made to maintain a

reasonable level of NPAs. Keeping in mind the RBI plan to introduce the concept of “One quarter” for

identification of NPAs by 2004, it is a high time to go in for recovery drive on a war-footing. While doing

so, prevention of NPAs should not be forgotten. These are the major challenges before banks which

have gone in for VRS. But sincerity and hard work along with professional approach on the part of SBI

management may help in the fulfillment of challenges. Towards this end, banks have to go long way.

If the nationalized commercial banks desire to stand in competition with the private sector banks and

the foreign banks, they should over a period of time, be in a position to bring down NPAs to

manageable proportion. Moreover, the government should take measures to facilitate the efforts of

the banks in the recovery of the loans which currently taken inordinately long time. If willful defaulters

to delay the repayment of the loan use the BIFR proceedings the relevant legal provision should be

appropriately amended. The fact that the NPAs are gradually going down generates hope about the

future of the banks, though we should keep in mind another simple fact that in absolute amount, this

has not happened.

BIBLOGRAPHY

Web Sites:-

 www.SBI.co.in (Date-30/7/13)

 www.rbi.org.in (Date - 1/8/13)

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 www.google.com (Date - 1/8/13)

Book:-

 NGB Business bulletin (Date-10/8/13)

 Marketing management by Philip kotler

Magazine& Journals

 Tata McGraw Hill (Date- 6/8/13)

(Accounting &Whole Sale Medicine Market for Financing Opportunities by SBI at

Lucknow

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