Denny Edited

A Study on Home Loan Process
Executive Summary:
State bank of India is one of the prime public sector banks in India. Over the years, it has grown
as a major bank. It provides several banking services to its customers. State bank of India home
loan is the most important service provided by the bank. State bank of India loan enables its
consumers to realize their dreams.
The project has been done in state bank of India the title is “A STUDY ON PROCESS OF
HOME LOAN IN STATE BANK NOF INDIA IN AKSHAYA NAGAR BRANCH,
BANGALORE.
The problems in SBI are the customer does not have proper knowledge and information about
different options under home loan schemes. The bank is able to furnish adequate information to
the customers. The attitude of the bank with the customers is non-co-operative. Bank has to give
proper knowledge to illiterate people.
The objectives of SBI are understanding satisfaction level of customers. Understand needs and
wants as well as improve the service according to the customer requirements.
Findings in SBI are most of the customers satisfied with the bank service and their interest rate.
The bank people as maintain good relation with customers. The bank as give quick response
about the customer doubts.
Recommendation to SBI are should provide specialized services to satisfy their customers. SBI
should use easy procedure for sanctioning of loan. Yet customers seek less interest rate which
can lower their cost of house. So banks should try to lower their interest rates. The company has
to reduce the administration charges; hence all these factors shall help to satisfy their customers
in long term business.
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S.E.A. College of Engineering And Technology
INDUSTRY PROFILE:
INTRODUCTION:
We can identify three distinct phases in the history of Indian banking. Early phase from
1786 to 1969 nationalization of bank and up to 1991 prior banking sector reforms new frames of
Indian banking with the advent of financial and banking sector reforms after 1991. The first
phase is from 1786 to 1969 the earlier phase up to the nationalization of 14 largest of Indian
scheduled banks. It was also traditional and conservative phase of Indian banking. The advent of
banking system of India started with the establishment of the first joins stocks banks, the general
bank of India in the year1786. After this first bank of Hindustan and Bengal bank came in to
existence. In the mid of 19th century east India company established three banks: the bank of
Bombay in 1840, and bank of Madras in1843. These three banks were amalgamated in 1920 and
a new bank imperial bank of India was established. All these institutions started as private
shareholders bank and the shareholders were mostly Europeans. The Allahabad bank was
established in 1865. The next bank to be set up was the Punjab national bank ltd., which was
established with its headquarters at Lahore in1894 for the first time exclusively by Indians. Most
of Indian commercial banks, however owe their origin to the 20th century. Bank of India, Bank of
bank of Baroda, Canara bank, the Indian bank and the bank of Mysore was established between
1906 and 1913.
The last major commercial bank to be set up in this phase was the united commercial
bank in 1943. Earlier the establishment of reserve bank of Indian in 1935 as the central bank of
the country was an important step in the development of commercial banking in India. The
history stock banking in this first phase was characterized by slow growth and periodic failures.
There were as many as 1100 banks, mostly small banks, failed during the period from
1913 to 1948. The government of India by the frequent bank failure in the country miseries to
innumerable small depositors and others enacted the banking act 1949. The title of the act was
changed as “banking regulation act 1949”.
There were large number of commercial banks, but banking services were not available at
rural and semi urban areas.
The Indian banking system: under the reserve bank of India act 1934, banks were
classified as scheduled banks and non-scheduled banks. The scheduled banks are those, which
are entered, in the second scheduled RBI act, 1934. Such banks are those, which have the paid-
up capital and reserves of an aggregate value of the not less than Rs. 5lakhs and which satisfy
RBI that there affairs are carried out in the interest of their depositors. All commercial banks are
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scheduled banks. Non-scheduled banks are those, have not been including in second scheduled
of RBI act, 1934. The organized banking system in India can be broadly divide into three
categories
• Commercial
• Regional bank
• Co-operative bank
The reserve bank of India is the supreme monetary and banking authority in the country and has
the responsibility to control the banking system in India. It keeps their serves of all commercial
banks and hence is known as “RESERVE BANK”.
Progress of banking in India since 1969: aggregate bank deposits constituting about two-fifths of
financial assets of the household sector have risen from 15% of GDP to around 39.3% and the
total number of branches from 8262 to 65,931. Of these around 45.5% are now in rural areas as
against less than 22.5% at the time of nationalization of major banks in 1969.
Opening of rural branches has improved mobilized of savings in the rural sector. Presently the
rural savings accounted for 15% of total deposits. Since bank nationalization in the country
priority sector credit has increased from 14% of total bank credit to around 30%. The first phase
of financial reforms resulted in the nationalization of 14 major banks in 1969 and resulted in the
shift from class banking to mass banking.
STATUS OF INDIAN BANKING INDUSTRY:
It is useful to note some telling facts about the status of Indian banking industry compared to
with other countries, recognizing the differences between the developed and the emerging
economics.
First, the structure of the industry: in the world’s top thousand banks there are many larger
and medium- sized domestic banks from the developed countries than from the emerging
economies. India, on the other hand, had 20 banks with in the top 1000 out of which only 6 were
with in the top 500 banks. This is perhaps reflective of difference in size of economies and of
the financial sectors.
Second, the share of the bank assets in the aggregate financial sector assets: in India, the
share of the banking assets in total financial sector assets is around 75%, as of end march 2004.
Third, internationalization of banking operations: the foreign banks in India enjoy greater
freedom in their operation, including retail banking in the country on par with domestic banks,
as compared with most of the other developing countries.
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Fourth, the share of the state- owned banks in total banking sector assets: encouraging state-
run banks to diversify ownership by inducting private share capital through public offering
rather than by strategic sale and still absorb the overhang problems. Successful reform of public
sector banks is a good example of a dynamic mix of public and private ownership in banks.
A noteworthy feature of banking reforms in India is the growth of newly licensed private sector
banks, some of which have attained globally best standards in terms of technology, services and
sophistication. The commission examined the problems and recommendations for reaching
changes. The commission’s report was the basis of the reforms that place during the 90s and
onwards.
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EVOLUTION OF SBI:
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 2 June 1806. Three years later the bank
received its charter and was re-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 (15 April 1840) and the Bank of Madras (1 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 27 January 1921.
Primarily Anglo-Indian creations, the three presidency banks came into existence either as a
result of the compulsions of imperial finance 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.
Establishment
The establishment of the 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
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 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 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, bank notes and
government balances made up the bulk of the investible 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.
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Business
The business of the banks was initially confined to discounting of bills of exchange or other
negotiable private securities, keeping cash accounts and receiving deposits and issuing and
circulating cash notes. Loans were restricted to Rs.one lakh and the period of accommodation
confined to three months only. The security for such loans was public securities, commonly
called Company's Paper, bullion, treasure, plate, jewels, or goods 'not of a perishable nature' and
no interest could be charged beyond a rate of twelve per cent. Loans against goods like opium,
indigo, salt woolens, cotton, cotton piece goods, mule twist and silk goods were also granted but
such finance by way of cash credits gained momentum only from the third decade of the
nineteenth century. All commodities, including tea, sugar and jute, which began to be financed
later, were either pledged or hypothecated to the bank. Demand promissory notes were signed by
the borrower in favour of the guarantor, which was in turn endorsed to the bank. Lending against
shares of the banks or on the mortgage of houses, land or other real property was, however,
forbidden.
Indians were the principal borrowers against deposit of Company's paper, while the business of
discounts on private as well as salary bills was almost the exclusive monopoly of individuals
Europeans and their partnership firms. But the main function of the three banks, as far as the
government was concerned, was to help the latter raise loans from time to time and also provide
a degree of stability to the prices of government securities.
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 Currency 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 currency within British India. The task of management and
circulation of the new currency 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 till then any branches (except the sole attempt
and that too a short-lived one by the Bank of Bengal at Mirzapore 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 the Bank of Bengal had eighteen branches including its head office,
seasonal branches and sub agencies, the Banks of Bombay and Madras had fifteen each.
Presidency Banks Act
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The presidency Banks Act, which came into operation on 1 May 1876, brought the three presidency
banks under a common statute with similar restrictions on business. The proprietary connection of the
Government was, however, terminated, though the banks continued to hold charge of the public debt
offices in the three presidency towns, and the custody of a part of the government balances. The Act also
stipulated the creation of Reserve Treasuries at Calcutta, Bombay and Madras into which sums above the
specified minimum balances promised to the presidency banks at only their head offices were to be
lodged. The Government could lend to the presidency banks from such Reserve Treasuries but the latter
could look upon them more as a favour than as a right.
The decision of the Government to keep the surplus balances in Reserve Treasuries outside the
normal control of the presidency banks and the connected decision not to guarantee minimum
government balances at new places where branches were to be opened effectively checked the
growth of new branches after 1876. The pace of expansion witnessed in the previous decade fell
sharply although, in the case of the Bank of Madras, it continued on a modest scale as the profits
of that bank were mainly derived from trade dispersed among a number of port towns and inland
centers of the presidency.
India witnessed rapid commercialization in the last quarter of the nineteenth century as its
railway network expanded to cover all the major regions of the country. New irrigation networks
in Madras, Punjab and Sind accelerated the process of conversion of subsistence crops into cash
crops, a portion of which found its way into the foreign markets. Tea and coffee plantations
transformed large areas of the eastern Terais, the hills of Assam and the Nilgiris into regions of
estate agriculture par excellence. All these resulted in the expansion of India's international trade
more than six-fold. The three presidency banks were both beneficiaries and promoters of this
commercialization process as they became involved in the financing of practically every trading,
manufacturing and mining activity in the sub-continent. While the Banks of Bengal and Bombay
were engaged in the financing of large modern manufacturing industries, the Bank of Madras
went into the financing of large modern manufacturing industries; the Bank of Madras went into
the financing of small-scale industries in a way which had no parallel elsewhere. But the three
banks were rigorously excluded from any business involving foreign exchange. Not only was
such business considered risky for these banks, which held government deposits, it was also
feared that these banks enjoying government patronage would offer unfair competition to the
exchange banks which had by then arrived in India. This exclusion continued till the creation of
the Reserve Bank of India in 1935.
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Presidency Banks of Bengal
The presidency Banks of Bengal, Bombay and Madras with their 70 branches were merged in
1921 to form the Imperial Bank of India. The triad had been transformed into a monolith and a
giant among Indian commercial banks had emerged. The new bank took on the triple role of a
commercial bank, a banker's bank and a banker to the government.
But this creation was preceded by years of deliberations on the need for a 'State Bank of India'.
What eventually emerged was a 'half-way house' combining the functions of a commercial bank
and a quasi-central bank.
The establishment of the Reserve Bank of India as the central bank of the country in 1935 ended
the quasi-central banking role of the Imperial Bank. The latter ceased to be bankers to the
Government of India and instead became agent of the Reserve Bank for the transaction of
government business at centers at which the central bank was not established. But it continued to
maintain currency chests and small coin depots and operate the remittance facilities scheme for
other banks and the public on terms stipulated by the Reserve Bank. It also acted as a bankers'
bank by holding their surplus cash and granting them advances against authorized securities. The
management of the bank clearing houses also continued with it at many places where the
Reserve Bank did not have offices. The bank was also the biggest tenderer at the Treasury bill
auctions conducted by the Reserve Bank on behalf of the Government.
The establishment of the Reserve Bank simultaneously saw important amendments being made
to the constitution of the Imperial Bank converting it into a purely commercial bank. The earlier
restrictions on its business were removed and the bank was permitted to undertake foreign
exchange business and executor and trustee business for the first time.
Imperial Bank
The Imperial Bank 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 financial 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 consistently maintained and the high standard of integrity it observed in
its operations inspired confidence in its depositors that no other bank in India could perhaps then
equal. All these enabled the Imperial Bank to acquire a pre-eminent position in the Indian
banking industry and also secure a vital place in the country's economic life.
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When India attained freedom, the Imperial Bank had a capital base (including reserves) of
Rs.11.85 crores, deposits and advances of Rs.275.14 crores and Rs.72.94 crores respectively and
a network of 172 branches and more than 200 sub offices extending all over the country.
First Five Year Plan
In 1951, when the First Five Year Plan was launched, the development of rural India was given
the highest priority. The commercial banks of the country including the Imperial Bank of India
had till then confined their operations to the urban sector and were not equipped to respond to the
emergent needs of economic regeneration of the rural areas. In order, therefore, to serve the
economy in general and the rural sector in particular, the All India Rural Credit Survey
Committee recommended the creation of a state-partnered and state-sponsored bank by taking
over the Imperial Bank of India, and integrating with it, the former state-owned or state-associate
banks. An act was accordingly passed in Parliament in May 1955 and the State Bank of India
was constituted on 1 July 1955. More than a quarter of the resources of the Indian banking
system thus passed under the direct control of the State. Later, the State Bank of India
(Subsidiary Banks) Act was passed in 1959, enabling the State Bank of India to take over eight
former State-associated banks as its subsidiaries (later named Associates).
The State Bank of India was thus born with a new sense of social purpose aided by the 480
offices comprising branches, sub offices and three Local Head Offices inherited from the
Imperial Bank. The concept of banking as mere repositories of the community's savings and
lenders to creditworthy parties was soon to give way to the concept of purposeful banking sub
serving the growing and diversified financial needs of planned economic development. The State
Bank of India was destined to act as the pacesetter in this respect and lead the Indian banking
system into the exciting field of national development.
TRANSFORMATION JOURNEY IN STATE BANK OF INDIA
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 is today going through a momentous phase
of Change and Transformation – the two hundred year old Public sector behemoth is today
stirring out of its Public Sector legacy and moving with an agility to give the Private and Foreign
Banks a run for their money.
The bank is entering into many new businesses with strategic tie ups – Pension Funds, General
Insurance, Custodial Services, Private Equity, Mobile Banking, Point of Sale Merchant
Acquisition, Advisory Services, structured products etc. – each one of these initiatives having a
huge potential for growth.
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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 two years.
It is also focusing at the top end of the market, on whole sale banking capabilities to provide
India’s growing mid / large Corporate with a complete array of products and services. It is
consolidating its global treasury operations and entering into structured products and derivative
instruments. Today, the Bank is the largest provider of infrastructure debt and the largest
arranger of external commercial borrowings in the country. It is the only Indian bank to feature
in the Fortune 500 list.
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 21000 ATMs, and other electronic
channels such as Internet banking, debit cards, mobile banking, etc.
With four national level Apex Training Colleges and 54 learning Centers spread all over the
country the Bank is continuously engaged in skill enhancement of its employees. Some of the
training programs are attended by bankers from banks in other countries.
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 – SBI Capital Markets, SBICAP Securities, SBI DFHI, SBI Factors, SBI Life and SBI
Cards - forming a formidable group in the Indian Banking scenario. It is in the process of raising
capital for its growth and also consolidating its various holdings.
Throughout all this change, the Bank is also attempting to change old mindsets, attitudes and
take all employees together on this exciting road to Transformation. In a recently concluded
mass internal communication programme 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
workshops fired the imagination of the employees with some other banks in India as well as
other Public Sector Organizations seeking to emulate the programme.
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.
BANKING SUBSIDIARIES
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State Bank of India has the following five Associate Banks (ABs) with controlling interest
ranging from 75% to 100%.
1. State Bank of Bikaner and Jaipur (SBBJ)

2. State Bank of Hyderabad (SBH)
3. State Bank of Mysore (SBM)
4. State Bank of Patiala (SBP)
5. State Bank of Travancore (SBT)
As on September 30, 2010, the five ABs have a combined network of 4497 branches in India
which are on core banking and 4302 ATMs networked with SBI ATMs, providing value added
services to clientele.
The combined net profit of these banks increased by 17.74% over the previous year to reach
Rs.3266.57 crores as on 31st March 2010. Deposits and advances grew by 14.37% and 15.12%,
respectively, during the year. The combined Net NPA ratio of all ABs was at 0.87% as on 31st
March 2010.The highlights of performance of the six ABs (including State Bank of Indore which
was acquired with effect from 26.08.2010) for the Financial Year 2009-10 are as follows:
(Rs. In crores)
Deposits 302835
Loans 228605
Investments 92422
Total Assets 359010
Return on Assets 1.00%
No. of Branches 4841
SBICI Bank Ltd (Banking Subsidiary, fully owned by SBI):

SBICI Bank Ltd has two branches, fully computerised, operating in Mumbai. The Bank recorded
a net profit of Rs.3.14 crores during 2009-10. Deposits, Loans and Investments were at
Rs.491.52 crores, Rs.207.98 crores and Rs.319.54 crores, respectively, as at 31st March 2010.
Return on Assets was at 0.47% while Capital Adequacy Ratio stood at 27.31% as on 31.3.2010.
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NON BANKING SUBSIDERIES
Top of Form
1. SBI Capital Markets Ltd

2. SBI Funds Management Pvt Ltd
3. SBI Factors & Commercial Services Pvt Ltd
4. SBI Cards & Payments Services Pvt. Ltd. (SBICPSL)
5. SBI DFHI Ltd
6. SBI General Insurance Company Limited
SBI Capital Markets Ltd (SBICAP)
SBICAP undertakes merchant banking activities, advisory services, project appraisal, credit
syndication and securities broking.
SBICAP’s current focus is on infrastructure project advisory and syndication mandates,

particularly in sectors, such as, urban infrastructure and power, which are reckoned as the growth
drivers. The other focus areas are public issues of equity, book-building issues, debt placements,
broking, and sales and distribution.
During the year, SBICAPs forged ahead in issue management, project advisory and structured
finance, sales & distribution. It focused on infrastructure project advisory and syndication
mandates, particularly in the energy sector, which is reckoned as the critical growth driver in the
growth of the economy.
On the international front SBICAPs bagged an infrastructure (water) advisory assignment from
the Ministry of National Economy, Oman and was an integral part of the team effort for SBI’s
first acquisition of a bank overseas. It was also associated with SBI for providing advisory in
respect of participation of Societe Generale Asset Management, France in SBI Mutual Funds.
It handled seven public issues out of the thirty four issues, which hit the primary market during
the period. The Company recorded an improved financial performance during the year with gross
income amounting to Rs.175.06 crore as against Rs.142.75 crore in the previous year, a y-o-y
growth of approx. 23%. PAT of Rs.88.12 crore as against Rs. 63.23 crore in the last year shows a
y-o-y growth of approx.40%.
SBI Funds Management Pvt Ltd (SBI FUNDS)
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SBI FUNDS is the Asset Management Company (AMC) set up for managing the affairs of SBI
Mutual Fund.
During 2003-04, SBI FUNDS reported a total inflow of Rs.12,450 crore in the open-ended funds.
Total redemption amounted to Rs.10,523 crore, leaving a net inflow of Rs.1,927 crore for the
year as against a net inflow of Rs.686 crore in the previous year. The total net assets of domestic
funds under management stood at Rs.5,340 crore as on the 31st March 2004 as against Rs.3,312
crores as on the 31st March 2003.
SBI FUNDS recorded a profit after tax of Rs.10.09 crore in 2003-2004, as against Rs.6.21 crore
in the preceding year and paid a dividend of 10%. The Bank holds 100% equity of the Company.
SBI DFHI Ltd (SBI DFHI)
SBI DFHI LTD is a Primary Dealer- an Institution created by RBI to support the book building
process in Primary Auctions of Government securities and provides necessary depth and
liquidity to the Secondary market in Government Securities.
SBI DFHI LTD was created out of the merger in 2004 of two leading players in the domestic
Money and Debt Markets, the RBI promoted Discount & Finance House of India (DFHI) and
SBI Gilts Ltd.
The Company is active in retailing of Government securities, including small lots, and is the
distributors of Mutual Fund products of all leading funds, actively participating in the domestic
interest rate derivatives and equities / equity future markets.
It is a market leader in the Primary Dealer segment of the domestic debt market, with a Net
Worth of Rs.1109.89 crores (as on 31st March 2010) and a presence in all major financial
centers of the country. It is a major participant in the Government Securities market and posted
an impressive turnover of Rs. 115477 cr. in Government Securities and Rs. 33834 cr. in T-Bills
during FY 2009-10.
The company has posted a post-tax profit of Rs. 89.23 crores for the year 2009-2010 and paid a
dividend of 20%. The State Bank Group holds 67.01% of the company’s share capital as on 31st
March 2010.
SBI Factors and Commercial Services Pvt Ltd (SBI FACTORS)
SBI Factors, a subsidiary of State bank of India (SBI) is one of the leading factoring companies
in India with an asset base of Rs. 700.10 crores as on 30.09.2005. It was established in February
1991 with the primary objective to provide domestic factoring services to Small and Medium
Enterprises (SMEs). Factoring is a Collection and finance service designed to improve the cash
flow position of SMEs by turning their credit invoices into ready cash. The major strength of the
company is that it has put in place a technology driven platform for offering integrated
receivables management. SBI and its Associates Banks hold 70% stake in SBI Factors.
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SBIF offers Domestic Factoring With Recourse and Without Recourse. Purchase Bill Factoring,
Factoring of Usance Bills Under LC, Channel Financing of Dealers / Distributors and Export
Factoring Facilities. All its products have been well received by its clients.
SBIF has ten branches all over the country and it has plans to open three more branches during
the year. It has achieved a turnover of Rs. 1489.54 Crores with Prepayment Outstanding of Rs.
459.35 crores for the year ended 31.03.2005. The profit before tax was Rs. 9.64 crores and PAT
Rs. 6.12 Crores for the year 2004-05. It has recorded a NIL NPA position as at 31.03.2005. It has
declared a dividend of 8% during the year 2005. It has a market share of 40.30% as on
30.09.2005.
SBI Cards & Payments Services Pvt. Ltd. (SBICPSL)
1. Launch of SBI Delhi, SBI Hyderabad and SBI Bangalore city affinity cards.
2. Launch of “Flexipay”, an installment loan programme.
3. Market leadership in VISA petrol spends in India.
4. Launch of e-bill payment of SBI Credit Card for SBI account holders.
5. Launch of Elite card which is offered by invitation only.
6. Ten per cent maiden dividend declared.
SBI General Insurance Company Limited
SBI General Insurance Company Limited is a joint venture between the State Bank of India and
Insurance Australia Group (IAG). SBI owns 74% of the total capital and IAG the remaining
26%.
SBI General commenced its business operation in India late March 2010 in a limited way and is
working towards a nationwide launch with a larger product portfolio.
SBI General will be a technology driven company with state-of-the-art IT systems. It will be a
multi-product, multi-segment and multi-channel company. SBI General is in the process of
setting up a unique multi-distribution model encompassing Banc assurance, Agency, Broking &
Retail Direct (On-line & Tele Sales) channels. Banc assurance will be the major channel during
the initial years.
SBI General’s Vision is to emerge as the most trusted protection provider with fair and
transparent business practices and lead the nation’s effort in increasing general insurance
penetration as well as partnering the nation in reducing risks systematically.
JOINT VENTURES
The Bank has the following Joint Ventures in India:
1. SBI Life Insurance Company Ltd (SBI LIFE)
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1. SBI Life Insurance Company Ltd (SBI LIFE)
SBI Life Insurance, India’s largest private life insurance, is a joint venture between State Bank
of India and BNP Paribas Assurance SBI owns 74% of the total capital and BNP Paribas
Assurance the remaining 26%. SBI Life Insurance has an authorized capital of Rs. 2,000 crore
and a paid up capital of Rs 1,000 crores.
BNP Paribas Assurance is the insurance arm of BNP Paribas - Euro Zone’s leading Bank. BNP
Paribas, part of the world’s top 10 groups of banks by market value and part of Europe top 3
banking companies, is one of the oldest foreign banks with a presence in India dating back to
1860. BNP Paribas Assurance is the fourth largest life insurance company in France, and a
worldwide leader in Creditor insurance products offering protection to over 50 million clients.
BNP Paribas Assurance operates in 41 countries mainly through the banc assurance and
partnership model.
SBI Life Insurance’s mission is to emerge as the leading company offering a comprehensive
range of Life Insurance and pension products at competitive prices, ensuring high standards of
customer service and world class operating efficiency.
SBI Life has a unique multi-distribution model encompassing Banc assurance, Agency and
Corporate Solutions. SBI Life extensively leverages the SBI Group relationship as a platform for
cross-selling insurance products along with its numerous banking product packages such as
housing loans and personal loans.Agency Channel, comprising of the most productive force of
over 68,000 Insurance Advisors, offers door to door insurance solutions to customers.
SBI Life’s Key Accomplishments:
Bagged the coveted personal finance award-Outlook Money NDTV Profit “best Life Insurer
2008”.
Globally topped at the prestigious MDRT 09, in terms of number of Million Dollar Round Table
(MDRT) members.
First life insurer to receive CRISIL’s highest financial rating AAA/Stable. ICRA too has
assigned iAAA rating indicating highest claims paying ability to SBI Life Insurance.
Retains ISO 9001:2000 certificate for superior claim settlement process
SBI General Insurance Company Limited is a joint venture between the State Bank of India and
Insurance Australia Group (IAG). SBI owns 74% of the total capital and IAG the remaining
26%. SBI General commenced its business operation in India late March 2010 in a limited way
and is working towards a nationwide launch with a larger product portfolio.
SBI General will be a technology driven company with state-of-the-art IT systems. It will be a
multi-product, multi-segment and multi-channel company. SBI General is in the process of
setting up a unique multi-distribution model encompassing Banc assurance, Agency, Broking &
15
Retail Direct (On-line & Tele Sales) channels. Banc assurance will be the major channel during
the initial years.
SBI General’s Vision is to emerge as the most trusted protection provider with fair and
transparent business practices and lead the nation’s effort in increasing general insurance
penetration as well as partnering the nation in reducing risks systematically.
SBI General in course of time will introduce innovative and well-diversified portfolio of
products at competitive prices & convenient to buy.
SBI General in course of time will introduce innovative and well-diversified portfolio of
products at competitive prices & convenient to buy.
NATURE OF BUSINESS CARRIED
“Some people believe that Banking means money lending and that a Banker is not but a glorified
Money lender. But banking is not money-lending as money lender does not take the risk whereas
the Banker does.” Bank is into pooling together the savings of the community scattered all over
and from the very same pool granting loans to the needy in the society. Thus it acts as a link
between the savers and the needy. Thus the two main products of the Bank are Deposits and
Loans.
VISION, MISSION AND QUALITY POLICY:
VISION:
• Premier Indian financial services with global perspective, world class standards of the
efficiency and professionalism and core institutional values.
• Retain its position in the country as a pioneer in developing countries.
• Maximize shareholder value through high sustained earnings per share.
• An institution with a culture of mutual care and commitment a satisfying and exciting.
• Work environment and continuous learning opportunity.
MISSION:
• To retain the banks position as the premier Indian financial services.

• Group with world class standards and significant global business commitment to
excellence in customer, shareholder and employee satisfaction and to play a leading role
in the expanding and diversifying financial services sector while continuing emphasis on
its development banking sector.
VALUES:
• Excellence in customer service.
16
• Profit orientation.
• Belonging and commitment to the bank.
• Fairness in all dealings and relations.
• Risk taking and innovation.
• Team playing.
• Learning and renewal.
• Integrity.
• Transparency and discipline.
SYMBOL AND SLOGAN

• The symbol of the State Bank of India is a circle and not key hole and a small man at the
centre of the circle. A circle depicts perfection and the common man being the centre of
the bank's business.
• Slogans
○ With you all the way
○ Pure banking nothing else
○ The Banker to every Indian
○ The Nation banks on us
QUALITY POLICY:
The main objects of SBI is to participate in manage, finance, furnish personal or real security for
the obligations of and provide services to other enterprises and institutions of any kind to
conduct banking business in the widest sense, including insurance brokerage, to acquire, build
and operate real estate and to engage in any activity which may be related or conducive to the
foregoing.
DIFFERENT PRODUCTS OF SBI:
Deposit Loans Cards Different Credit Cards

Savings Account Home Loans Consumer Cards SBI International cards
Life Plus Senior Loan Against Credit Card SBI Gold cards
Citizens Savings Property
Account
17
Fixed Deposits Personal Loans Travel Card SBI Gold Master cards
Security Deposits Car Loan Debit Cards
Recurring Deposits Loans against Commercial Your City Your Cards
Securities Cards
Tax-Saver Fixed Two Wheeler Corporate Cards
Deposit Partnership Cards
Salary Account Pre-approved Prepaid Card
Loans
Advantage Woman Retail Asset Purchase Card
Savings Account SBI Employee Cards
Rural Savings Farmer Finance Distribution
Account Cards
People's Savings Business Business Card
Account Installment SBI Advantage Cards
Loans
Freedom Savings Flexi Cash Merchant
Account Services
AREA OF OPERATION:
18
State Bank of India administrative structure is well equipped to oversee the large network
of branches in India and abroad. The State Bank of India 14 Local Head Offices and 57 Zonal
Offices are located at important cities spread throughout the country. State Bank of India has 52
foreign offices in 34 countries across the globe. The Corporate Accounts Group is a Strategic
Business Unit of the Bank set up exclusively to fulfill the specialized banking needs of top
corporate in the country. The main activities of State Bank of India are - Personal Banking, NRI
Services, Agriculture, International, Corporate, SME and Domestic Treasury.
Branches of SBI
• State Bank of India has 131 foreign offices in 32 countries across the globe.
• SBI has about 21,000 ATMs; and SBI group (including associate banks) has about
45,000 ATMs.
• SBI has 26,500 branches, including branches that belong to its associate banks.
• SBI includes 99345 offices in our country.
ADDRESS:
Branch Name: State Bank of India Akshayanagar

No.9, KRV Towers, T C Palya Main Road
Akshaya Nagar, Ramamurthy Nagar

Pin: 560016
Std Code: 080
Phone: 28474255
Fax: 28474432
E-Mail:Sbi.13159@Sbi.Co.In
OWNERSHIP PATTERN:
19
Central board of State Bank of India
(As on 31-12-2010)
Sr. No. Name of Director Designation Sec. of SBI Act, 1955
1. Shri O.P. Bhatt Chairman 19(a)
2. Shri R. Sridharan Managing 19(b)
Director
3. Dr. Ashok Jhunjhunwala Director 19(c)
4. Shri. Dileep C. Choksi 19( c)
Director
5. Shri S Venkatachalam Director 19(c )
6. Shri D. Sundaram Director 19(c )
7. Shri. G.D. Nadaf Officer Employee 19(c )
Director
8. Dr. Vasantha Bharucha Director 19(d)
9. Dr. Rajiv Kumar Director 19(d)

10. Shri Ashok Chawla Director 19(e)
11. Smt. Shyamala Gopinath Director 19(f)
20
ORGANISATION STRUCTURE:
List of Regional Offices bank has a lien three-tier structure. The delegated powers have been
enhanced. The decentralized power structure has accelerated decision making process and
thereby Bank quickly responds to changing the needs of the customers and has also been able to
adjust with the changing environment.
ORGANISATION STRUCTURE OF SBI:
State Bank of India
Chairman
Managing Director
Director Director Director
Executive Director Executive Director Executive Director
21
Shareholder Shareholder Shareholder
COMPETITORS INFORMATION:
List of Last price Market Net interest Net profit Total assets
banks price(rs.cr) income
SBI 2761.05 175326.15 70993.92 9166.05 1053413.74
PNB 1095.05 34527.20 21422.09 3905.35 296632.79
Bank of 900.40 32912.32 16698.34 3058.33 278316.71
Baroda
Canara Bank 583.25 23913.25 18751.96 3021.43 264741.09
Bank of India 442.85 23289.92 17877.99 1741.07 274966.46
Union Bank 338.75 17110.87 3302.68 2074.92 195161.85
IDBI Bank 133.30 13123.80 15272.63 1031.13 233572.01
Indian Bank 220.35 9469.98 7714.37 1554.99 101389.32
Allahabad 208.85 9329.33 8369.20 1206.33 121699.21
Bank
Oriental 330.60 8282.84 10257.12 1134.68 137431.00
Bank
22
INFRASTRUCTURAL FACILITIES:
As regards to the infra structural facilities provided in State Bank of India Offices: The Head
office of SBI has a central air condition system which helps the employees to escape from the
heat of Mumbai City, Canteen: The Bank provides canteen facility to all its employees and it is
situated inside the Bank premises, System: The bank is one of the main bank in the country
which uses Financial Software which in turn helps the bank to serve its customers more
efficiently. The bank also provides internet facility to its employees, safe deposits, locker
facilities and other security facilities etc.
ACHIEVEMENTS/AWARDS:
Awards
1. State Bank Of India Has Been Awarded Best Online Banking Award (Winner)By
IBA Banking Technology Awards - 2010
2. Best Bank 2009 State bank of India has been adjuged the best bank 2009 by business
India (August-2009)
3. Shri OM Prakash Bhatt, the chairman of SBI, has declared as one of the "25 most
valuable Indians" by the week magazine for 2009(Published in August-2009 Issue).
4. Awarded the “Bank of the year 2008-India” by the Banker Magazine, London.
5. Ranking in “The Banker-Top 1000 world Banks” improved to 57 from 70 in 2007.
Only Indian Bank among the Top 100 Banks in the world. Ranked 8th in Top 25
Banks in Asia.
6. Reputation Institute, US has ranked SBI as 29th ranked 59 in global 500 Financial
Brand Recognition ranking by Brand Finance, London 2008.
7. Ranked No.1 in Survey of Top 5 companies in India in terms of Financial Reputation
by Wall Street Journal Asia.
8. Only Indian Bank to find a place in the Fortune Global 500 list. Improved ranking
from 495 last year to 380 this year.
23
9. Improved ranking from 219th position last year to 150th this year in the Forbes 2000
List of largest companies in the World.
WORK FLOW MODEL:

Chart showing the process map deposit
Deposit Application
Application Review
and Documentation
Decision Making
Processing
Cash
Cheque
Draft
Savings Account
Current Account
24
Accounts Department
Work Done
The various stages of granting loan to customers were depicted below.
Customers
Customer Specific
Requirement
Filling of Application
Application of Review
Decision
Reject
Documentation
Loan Disbursement
25
Repayment of Interest
MCKINSEY’S 7S FRAME WORK:
The Mcknisey’s 7-s frame work as an attempt: Developed in the 1970s by consultation at
Mcknisey’s and company to assist manager to do away with the difficulties in implementation
that are associated with change in the organization. 7s model shows the change in complex and
indicate due to organizational immune systems, difficult paradoxes and many interconnection
variables involved. In understanding how 7s model works.
Structure
Strategy
Systems
Style
Skills
Staff
Shared values
SRTATEGY:
SBI covers vision, mission, objectives, goals and major actions plans and policies for its business
operations. The bank targets at gaining competitive advantage over rivals in India. The 7s frame
work includes that execution of strategy poses more problems than formulation.
26
SBI as an organization driven by values is committed to pursue objectives that are in the
interests of the bank shareholders and the society at large in consonance with best practice.
To become the bank of first choice in one chosen areas by building beneficial and lasting
relationship with customers through a process of continues improvement.
➢ A logical extension of the Vision statement is the Mission of the bank, which is to gain
market recognition in the chosen areas.
➢ To build a sizable market shares in each of the chosen areas of business through effective
strategies in terms of pricing product packaging and promoting the product in the market.
➢ To facilitate a process of reconstructing of branches to support a greater efficiency in the
retail banking field.
➢ To sustain the mission objective through harnessing technology driven banking and
delivery channels.
➢ To promote confidence and commitment among the staff members to address the
expectation of the customers efficiently and handle technology banking with ease.
➢ Practice sound financial and accounting procedures to ensure statutory regulatory
compliances and constantly review organizational structure and control systems to
respond to new challenges.
➢ Establish clearly documented and transparent management processes for policy planning
and development, coherent business strategies implementation and review, decision
making, monitoring control and reporting.
➢ Ensure that the Bank’s Board of Director’s meet regularly provide effective leadership,
exercise control over the management and monitor executive performance with their
blend expertise and professionalism.
➢ Establish a frame work of strategic control and continuously review its efficacy to
promote integrity openness and accountability. Better disclosures and transparency will
bolster investor/share/stakeholder confidence.
STRUCTURE:
SBI has divided the whole structure into activities department setting division of labor and
delegation of authority. The bank also facilitates coordination control of various activities in the
framework of organizational mission purposes and goal. SBI concentrates on reduction of
uncertainty that stems from unpredictable human behavior via the mechanism of control system.
27
Organizational Structure:
The Regional Offices Bank has a lean three-tier structure. The delegated powers have been
enhanced. The decentralized power structure has accelerated decision making process and there
by Bank quickly responds to changing needs of the customers and has also been able to adjust
with the changing environment with its decentralization policy.
The Managing Director assisted by the Chief General Manager and 6 General Managers in
the areas of operation Commercial and Institutional Banking Planning and Development Finance
and Services Inspection and Vigilance and information and technology form the management
team of the bank.
SYSTEMS:
In the 7s frame work systems signify rules and regulations including procedures that support
the organization structure. Thus the bank focuses on production planning and control system,
budgeting and budgetary control system financial and cost accounting system, training and
development system, performance system, performance evaluation system and so on. Systems
and procedures department designs and implement various system to improve the efficiency of
the bank. Banking system was designed to enable customers to conduct their transactions in any
branch of the bank across the country. With their product the customer has truly become the
customer of the bank.
Risk management policies of the bank covering credit market and operational risk envisage
identifying, measuring and managing the major risks faced by the bank. For managing the risks
arising out of adverse movement in the market interest rate, currency exchange rates, equity price
risk and commodity price risk, the market Risk Management Policy has been formed.
STYLE/CULTURE:
SBI has its own distinct culture and management style. It includes the dominant values
beliefs and norms which develop over times and become relatively enduring features of the
organizational life. It also entails the way managers interact with the employees and the way they
spend their time. However extensive efforts are made to change to culture to a more open,
innovative and friendly environment with fewer hierarchies and smaller chain of command.
Culture remains an important consideration in the implementation of any strategy in the
organization. A separate Head Office Customer Service Committee under the chairmanship of
the Chief General Manager with representation from the officers Association and Employees
Union and Departmental Heads, monitor the implementation of customer service guideline
across the bank.
28
The Banking Codes and Standards Board of India are set up as a society promoted by
banks to formulate comprehensive code of conduct for fair treatment to customers. The Boards
Code on Banks commitment to customers has been adopted by the bank and is made available to
all existing and new customers. The code is also placed on the website of the bank. During the
current year the Bank has adopted Cheque Collection Policy Grievances policy, Compensation
Policy, Policy on Collection of dues and Repossession of Security, in tune with the
recommendations of BCSBI.
The banks vision and mission emphasizes a healthy customer relationship and customer
services continue to be accorded the highest priority in the bank. Customer service committee of
the Board oversees implementation of customer service initiative/direction of government of
India/Reserve Bank of India.
STAFFING:
Staffing is that vital process that deals with recruiting and selecting matching persons for
the organizational posts or positions training and developing them. Placing them in posts so as to
get out each one of them. High performing companies are the best employees. It is a process of
Recruitment and Selection. Due to registration, termination, retirement and transfers the
concerned department head will give the manpower requirement along with the job description.
The manpower sourcing is done via advertisement, manpower consultant and employment
exchange and personnel reference. Promotion is on the basis of seniority.
SKILLS:
It is ability or proficiency in performing a particular task it is an acquired or learnt ability
to translate knowledge into performance. It is the competency that allows for superior of
knowledge is one thing and applying it is another.
The bank continued to extend financial assistance to weaker section of the society comprising of
small and marginal farmers landless labors tenant farmers etc.
SHARED VALUES:
It stands for company’s vision, mission, values, philosophy, in the back drop of which
organization goals and objectives are set and strategies are formulated. Excellence in customer
29
service profit orientation belongs and commitment to the bank fairness in all dealing and
relations risk taking and innovation team playing learning and renewal integrity. Transparency
and discipline in polices and systems.
The supporters of Mcknisey’s model speak of super ordinate goals and they mean by it a
set of values and aspirations. That goes beyond the conventional formal statement of cooperate
objectives. These are but essential as they inspire the members of the organization and provide a
definite direction towards the peak heights of success.
SBI as on organization driven by values is committed to pursue objectives that are in the
interests of the Bank, shareholders and all stake holders and the society at large, in consonance
with best practices.
4. SWOT ANALYSIS:
STRENGTH:
➢ It plays a very proactive and dynamic role in the economic development of the
nation’s wide network.
30
➢ Large number of customers.
➢ Investment portfolio.
➢ Wide product portfolio.
➢ Enhanced financial performance.
➢ Efficient use of resources.
WEAKNESS:
➢ To growth curve may not move steadily upwards and in the short to medium terms,
multiple challenges would tamper the speed and growth in various business.
➢ Our business with the economy and capital market our financial performance in
subject to fluctuations depending on the pace of economic growth and activity in the
capital market and many market.
OPPORTUNITIES:
➢ We perceive the low retail penetration of financial services and products in India
as a huge business opportunity for as.
➢ India’s attractive demographic profile will facilitate multiplier growth in the
financial services sector.
➢ With increase in the income levels and risk taking abilities of the youth the India’s
growth stories continues to move ahead at a steady pace.
➢ While the funding business will pace same challenges for a while we believe that
distressed assets will offer several interesting opportunities for our newly
commended at reconstruction business.
THREATS:
➢ Political stability always has a direct correlation with the investment environment
of any economies and forms a crucial factor in determining investor sentiments.
➢ New entrants in the Indian financial markets will also add to the increased
competitor for our various businesses.
31
➢ We face still competitions in all our business from domestic and multinational
players operating in India.
5. Profit and loss account for the year ended-31st March, 2010(In Rs.Cr.)
Mar '09 Mar '10
12 mths 12 mths
Income
32
Interest Earned 63,788.43 70,993.92
Other Income 12,691.35 14,968.15
Total Income 76,479.78 85,962.07
Expenditure
Interest expended 42,915.29 47,322.48
Employee Cost 9,747.31 12,754.65
Selling and Admin Expenses 5,122.06 7,898.23
Depreciation 763.14 932.66
Miscellaneous Expenses 8,810.75 7,888.00
Preparative Exp Capitalized 0.00 0.00
Operating Expenses 18,123.66 24,941.01
Provisions & Contingencies 6,319.60 4,532.53
Total Expenses 67,358.55 76,796.02
Liabilities
Net Profit for the Year 9,121.23 9,166.05

Extraordinary Items 0.00 0.00
Profit brought forward 0.34 0.34
Total 9,121.57 9,166.39
Preference Dividend 0.00 0.00
Equity Dividend 1,841.15 1,904.65
Corporate Dividend Tax 248.03 236.76
Per share data (annualized)
Earnings Per Share (Rs) 143.67 144.37
Equity Dividend (%) 290.00 300.00
Book Value (Rs) 912.73 1,038.76
Appropriations
Transfer to Statutory Reserves 6,725.15 6,495.14
Transfer to Other Reserves 306.90 529.50
Proposed Dividend/Transfer to Govt 2,089.18 2,141.41
Balance c/f to Balance Sheet 0.34 0.34
Total 9,121.57 9,166.39
Learning Experience:
33
SBI is one of the prime public sector banks in India. Over the years it grown as a major bank
which provides banking services to its customers. As leading banker in India which focuses
diversified banking services among which the researcher as concentrated on home loan services.
The home loan schemes supports thousands of customers to realize their dreams come true.
Organization Structure SBI has divided the whole structure into activities department setting
division of labor and delegation of authority. The bank also facilitates coordination control of
various activities in the framework of organizational mission purposes and goal. SBI
concentrates on reduction of uncertainty that stems from unpredictable human behavior via the
mechanism of control system.
Staffing is that vital process that deals with recruiting and selecting matching persons for the
organizational posts or position training and developing them. High performing companies are
the best employers. It is a process of Recruitment and Selection.
SBI has its own distinct culture and management style. It includes the dominant values
beliefs and norms which develops over time and become relatively enduring features of the
organizational life. It also entails the way managers interact with the employees and the way they
spend their time.
The bank focuses on planning and control system, budgeting and budgetary control system
financial and cost accounting system, training and development system, performance system,
performance evaluation system and so on.
SBI targets at gaining competitive advantage over rivals in India. To become the bank of
first choice in one chosen areas by building beneficial and lasting relationship with customers
through a process of continues improvement. Excellence in customer service profit orientation
belonging and commitment to the bank fairness in all dealing and relations risk taking and
innovation team playing learning and renewal integrity. Transparency and discipline in polices
and system.
The bank were coordinate with the customer and responding to their doubts complaints to
maintain long relationship with the bank. It focuses on marketing and sales aspects of the bank of
their products and services through the advertisements. It provides more business to the bank.
Marketing of their products and services through television radios print media etc.
Information system is very useful to the banking sector it gives various information on various
matters relating to the banking products and services about the competitors.
This was a great experience and opportunity to feel the cooperate culture at SBI. I could
meet all levels of managers and learnt many valuable lessons from them. I was exposed to
34
certain training programs and other policies. What I learnt in my text book was set live in the
organization. Personally I gained many valuable insights in SBI which would help in my career.
It is about the working environment about dealing with the employees, about the attitude
required to sustain in an organization and so on. The experience gained during the training period
is unmatched and it is more equal to a hundred class room session.
GENERAL INTRODUCTION:
35
“A STUDY ON PROCESS OF HOME LOAN SERVICES IN STATE BANK
OF INDIA IN AKSHAYA NAGAR BRANCH, BANGALORE”
Home loans work like any other debt. That is, loans are simply specific money that we borrow
from a bank, a private lender, or some other type of lender. Afterwards, we must repay our debts
with interest. However, unlike other type of loans, home loans are different in several respects.
Owing a piece of land or property is a lifetime dream for every individual. There are many home
loans provider in the market.
Home is a dream of a person that shows the quantity of efforts, sacrifices luxuries and above all
gatherings funds little by little to afford one’s dream. Home is one of the things that everyone
wants to own. Home is a shelter to person where he rests and feels comfortable. Many banks
providing home loans to the people who want to had a home. The housing sector plays an
important role in the economic development of the country.
There are greater numbers of borrowers of home loans. So by this study we can find out
satisfaction level of customers and problems faced by them in obtaining home loans.
STATEMENT OF THE PROBLEM:

Banking is the backbone of a modern economy. Health of banking industry is one of the most
importance pre-conditions for sustained progress of any country.
1. The customer lacks knowledge and the information about different options under home
loan schemes.
2. The bank is unable to furnish adequate information to the customers.
3. Delays in sanctioning of home loans.
4. The attitude of the bank with the customers is non co-operative.
5. Bank has to give proper knowledge to illiterate people.
6. Customers were dissatisfied regarding the service.
OBJECTIVES OF THE STUDY:

1. To understand the satisfaction level of customers rendering about home loan services.
2. To find out our problems faced by the customers during the home loan process.
3. To understand the customer needs and wants for SBI.
4. To improve the quality of service.
5. To analyze the customer perception about home loan.
6. To comply with handling the customer complaints and suggestions.
SCOPE OF THE STUDY:
36
The study is focused on process of home loan and perceived level of satisfaction with regard to
SBI. This study is limited to the customers with in Bangalore city. The study will be able to
reveal the preferences, needs satisfaction of the customers regarding the banking services. It also
help banks to know whether the existing products or services that are offering are really
satisfying the customer’s needs.
METHODOLOGY:
The research methodologies for this study are both primary data as well as secondary data. The
primary data structured questionnaire was framed to check the satisfaction level, process; service
etc. of customers about home loans was included. The secondary data collection was through
intensive study made on annual reports of RBI, SBI bank, brochure, newspapers, magazine and
websites.
Design of Research:
The research will be exploratory in nature. A population of peoples who take home loan from
these banks will be considered for the study. I tried to explore about the home loans which would
make a difference in the behavior of the customer. Effort will be made to throw light on most of
the factors which have either direct r indirect effect on the behavior of the consumer. I also
explore the impact of home loans on the market share of the banks.
Sampling plan:
Population:
The study aimed to include the customers of SBI oin Bangalore, to make a study on home loan
process.
Sample size:
A Sample size of 50 respondents is taken for the current study because it is not possible to cover
the whole universe in the available time period. So it is necessary to take the sample size. The
sample may take in the form of strata based on age, sex and income group.
Sampling technique:
The sampling technique will be probabilistic sampling more specifically the random convenient
and judgmental sampling will be used. As in probabilistic sampling the select unit for
observation with known probabilities so that statistically sound assumptions are supported from
the sample to entire population so that we had positive probability of being selected into the
sample. I went for stratified random sampling as we are interested to study the home loan
process in SBI bank, so we make the strata on the basis of age, occupation, income level, gender.
And from each stratum we will go for random sampling.
37
SBI HOME LOAN PROCEDURE:
Purpose:
• Purchase/ Construction of House/ Flat
• Purchase of a plot of land for construction of House
• Extension/ repair/ renovation/ alteration of an existing House/ Flat
• Purchase of Furnishings and Consumer Durables as a part of the project cost.
• Takeover of an existing loan from other Banks/ Housing Finance Companies
Features:
• Interest charged on the daily reducing balance
• No penalty for prepayments made
• No hidden costs
• All the features of our product, including interest rates, are in the public domain.
• Loan sanctioned within 6 days of submission of required documents.
• Option to club income of your spouse and children to compute eligible loan amount
• Provision to club depreciation, expected rent accruals from property proposed to compute
eligible loan amount
• Provision to finance cost of furnishing and consumer durables as part of project cost
• Repayment permitted up to 70 years of age
• Free personal accident insurance cover up to Rs.40 Lac.
• Optional Group Insurance from SBI Life at concessional premium (Upfront premium financed
as part of project cost)
• SBI provides 80% amount of total value of the purpose.
• Special scheme to grant loans to finance Earnest Money Deposits to be paid to Urban
Development Authority/ Housing Board, etc. in respect of allotment of sites/ house/ flat
Eligibility:
1. Minimum age 18 years as on the date of sanction.

2. Maximum age limit for a Home Loan borrower is fixed at 70 years, i.e. the age by which the
loan should be fully repaid.
Availability of sufficient, regular and continuous source of income for servicing the loan
repayment.
To enhance loan eligibility you have option to add:
1. Income of your spouse/ your son/ daughter living with you, provided they have a steady
income and his/ her salary account is maintained with SBI.
38
2. Expected rent accruals (less taxes, cess, etc.) if the house/ flat being purchased is proposed to
be rented out.
3. Depreciation, subject to some conditions.
4. Regular income from all sources.
5. Should be a Government employee or should be an Income tax payer to the Government.
Margin (Special Festival Season Offer)
• Purchase/ Construction of a new House/ Flat/ Plot of land: 15% for loans up to Rs. 1 cr.,
20% for loans above Rs. 1 cr.
• Repairs/ Renovation of an existing House/ Flat: 15%
Pre-closure Penalty:
No penalty if the loan is preclosed from own savings/windfall gains for which documentary
evidence is produced by the customer.
In case, such proof is not produced by the borrower, penalty @2% on the amount prepaid in
excess of normal EMI dues shall be levied if the loan is preclosed within 3 years from the date of
commencement of repayment.
Maximum Repayment Period
• for applicants up to 45 years of age: 20 years
• for applicants over 45 years of age: 15 years
Documents:
• Completed application form
• Passport size photograph
• Proof of Identity – PAN Card/ Voters ID/ Passport/ Driving License
• Proof of Residence – Recent Telephone Bill/ Electricity Bill/ Property tax receipt/ Passport/
Voters ID
• Proof of business address in respect of businessmen/ industrialists
• Sale Deed, Agreement of Sale, Letter of Allotment, Non encumbrance certificate, Land/
Building Tax paid receipt etc. (as applicable and subject to satisfaction report from our
empanelled lawyer)
• Copy of approved plan and approval from the Local Body
• Statement of Bank Account/ Pass Book for last 6 months.
Top of Form
39
TYPES OF HOME LOAN

1. SBI Easy Home Loan
Getting your dream home has become easier with SBI Easy Home Loan. With low interest rates
for home loan under Rs. 30 lakhs category, SBI Easy ensures that you are not burdened with
high interest for your home loan. Plus with over 13700 SBI branches nationwide you can get
your Home Loan account parked at a branch nearest to your present or proposed residence.
(Base Rate: 8.25% p.a.)
Name SBI Easy Home Loan
Facility Type Term Loan or OD as in SBI MaxGain. (OD facility will be available for loans
above Rs.5 Lacs.)
Loan amount Upto (and including) Rs.30 Lacs
Interest Rate Card Rate applicable for the tenor of the loan – 1.50% above Base Rate,
Present effective rate being 9.75% p.a.
1st Year 1% discount over Card Rate, present effective rate being 8.75% p.a.
nd rd
2 and 3 0.25% discount over Card Rate, present effective rate being 9.50% p.a.
year
4th year Card Rate
onwards
Processing Fee
The revised processing fee structure (including service tax) is as under:
Loan Amount Processing Fee
Upto Rs.5 Lac Rs.1000/-
Above Rs.5 Lac and upto Rs.10 Lac Rs.2000/-
Above Rs.10 Lac and upto Rs.20 Lac Rs.5000/-
40
Above Rs.20 Lac and upto Rs.30 Lac Rs.7,000/-
2. SBI Advantage Home Loan

Name SBI Advantage Home Loan
(Above Rs.30 Lacs and upto Rs.75 Lacs)
Facility Type Term Loan or OD as in SBI MaxGain.
Loan amount For Home Loans above Rs 30 Lacs and upto Rs. 75.00 Lacs
Interest Rate Card Rate applicable for the tenor of the loan – 1.75% above Base Rate, Present
effective rate being 10.00% p.a.
Ist Year 1.25% discount over Card Rate, present effective rate being 8.75% p.a.
2nd and 3rd 0.50% discount over Card Rate, present effective rate being at 9.50% p.a.
year
4th year Card Rate
onwards
Processing Fee:
Loan Amount Processing Fee
Above Rs.30 Lac and upto Rs.50 Lacs Rs.7,000/-
Above Rs. 50 Lacs and upto Rs. 75 Lacs Rs. 8,000/-
41
3. SBI Premium Home Loan – Above Rs.75 Lacs
Name SBI Premium Home Loan – Above Rs.75 Lacs
Facility Term Loan or OD as in SBI MaxGain upto Rs.1 Crore.
Type
Loan For Home Loans above Rs 75.00 Lacs
amount
Interest Card Rate applicable over the tenor of the loan is 1.75% over the Base Rate,
rate present effective rate being 10.00% p.a.
Concessions including discretionary concessions will be available over the
tenor of the loan.
Loan Amount Processing Fee Processing Fee
The revised processing fee

Above Rs.75 Lacs and upto Rs.1 Crore Rs. 8,000/- structure (including service
tax) is as under:
Above Rs. 1 Crore and upto Rs. 5 Crores Rs. 10,000/-
Above Rs. 5 Crores Rs. 20,000/-
42
43
LIMITATIONS OF THE STUDY:
1. The time given for the project to be completed is less and thus a chances that some
information might have been left out.
2. Due to time constraints the area of sample size was relatively small.
3. It was difficult to find respondents as they were busy in their schedule, and collection of
data was very difficult.
4. It is very difficult to know all the respondents gave accurate information; some
respondents may give misleading information.
44
ANALYSIS AND INTERPRETATION
SI.NO Age of respondents No. of respondents Percentage
1 21-30 14 28
2 31-40 16 32
3 41-50 12 24
4 Above 51 8 16
5 Total 50 100
Table No.1: Showing the age of respondents.
Analysis: From the above table it states that 32% of respondents are 31-40 age groups, 28% of
respondents are 21-30 age groups, 24% of respondents are 41-50 age groups, and 16% of
respondents are above 51 age group.
Interpretation: From the above analysis, it clearly found that 32%of total respondents are 31-40
age groups.
Graph No. 1: Showing age of respondents.
Table No.2: Showing Occupation of the respondents.
45
SI.No Occupation of respondents No. of respondents Percentage

1 Businessman 10 20
2 Professional 9 18
3 Employee 20 40
4 Retired 7 14
5 Housewife 4 8
6 Total 50 100
Analysis: From the above table it states that 40% of respondents were employees, 20% of
respondents were businessman, 18% of respondents were professional, 14% of the respondents
were retired, and finally 8% of respondents were housewife..
Interpretation: from the above analysis, it is found that 40% of total respondents were
employees and 60% were employed in various organizations in Bangalore.
Graph No.2 Showing Occupation of the Respondents.
Table No. 3: Showing Annual Income of the Respondents.
SI.No Annual income of No. of Percentage

respondents respondents
1 100000-300000 26 52
2 300001-500000 14 28
3 500001-1000000 6 12
4 Above 1000000 4 8
5 Total 50 100
46
Analysis: From the above table it states that 52% of respondents income level is 100000-
300000, 28% of respondents income level is 300001-500000, 12% of respondents income level
is 500001-1000000, 8% of respondents income level is above 1000000.
Interpretation: From the above analysis, it states that 52% of total respondents income level is
100000-300000.
Graph No. 3: Showing Annual Income of the respondents.
Table No. 4: showing status of bank account holders.
SI.No Status of bank No. of percentage

account holders respondents
1 Yes 45 90
2 No 5 10
3 Total 50 100
Analysis: From the above table it indicates that 90% of respondents have bank account with SBI
and 10% of respondents do not hold bank account with SBI.
Interpretation: The above analysis shows that 90% of total respondents have bank account with
SBI.
Graph No.4: Showing status of bank account holders.
47
Table No.5: showing type of account.
SI.No Type of account No. of Percentage

respondents
1 Saving account 40 80
2 Current account 7 14
3 Term deposits 2 4
4 Mutual fund 1 2
5 Total 50 100
Analysis: from the above table it is clear that 80% of total respondents prefer saving account,
14% of respondents prefers current account, 4% of respondents prefers term deposit and 2% of
respondents prefer mutual fund.
Interpretation: it can be inferred that majority of total respondents preferred saving account
therefore there is a huge potential for the banker and calls for product expansion in this area.
Graph No. 5: Showing type of account holders
Table No. 6: Showing awareness of SBI provided home loan
SI.No Awareness of SBI No. of Percentage

home loan respondents
1 Yes 45 90
2 No 5 10
48
3 Total 50 100
Analysis: from the above table it sees that 90% of respondents aware about SBI home loan, 10%
of respondents are not aware about SBI home loan.
Interpretation: From the above analysis, it clearly found that 90% of total respondents were
aware about the SBI provide home loan service to the customers.
Graph No. 6: Showing awareness of loan provided by SBI
Table No. 7: Showing the customer interest towards schemes of home loan in SBI
SI.No Scheme of home No. of Percentage

loan respondents
1 Construction 30 60
2 Land purchase 12 24
3 Home extension 3 6
loan
4 Home purchase 5 10
loans
5 Total 50 100
Analysis: From the above table states that 60% of respondents prefer home construction, 24% of
respondents prefer land purchase, 10% of respondents prefer home purchase loans and 6% of
respondents prefer home extension loans.
49
Interpretation: From the above analysis, it is found that 80% of total respondents prefers home
construction and hence for to fulfill their dream house.
Graph No. 7: Showing the customer interest towards schemes of home loan in SBI.
Table No.8: Showing satisfaction of SBI home loan service.
SI.No Level of satisfaction No of respondents Percentage

1. Yes 40 80
2. No 10 20
3. Total 50 100
Analysis: From the above table states that 80% of respondents were satisfied with the SBI home
loan service 20% of respondents not satisfied with the SBI home loan.
Interpretation: From the above analysis it is found that 80% of respondents were satisfied with
the service offered by the SBI.
Graph No: 8 Showing satisfaction of SBI home loan services.
Table No.9: showing reasons for customer satisfaction.
50
SI.No Reasons for No of respondents Percentage

satisfaction
1 Good response 35 70
2 Brand name of 3 6
bank
3 Timely service 8 16
4 Safe and secure 4 8
5 Total 50 100
Analysis: From the above table shows that 70% of respondents give importance for good
response, 16% of respondents give importance for good service of the bank, 8% of respondents
give importance for safe and secure, and 6% of respondents give importance for brand name of
the bank.
Interpretation: It can be inferred that it is that 70% of the total respondents prefers good
response from SBI for the services offered.
Graph No.9: Showing reasons for customer satisfaction.
Table No.10: Showing the sources of awareness about the SBI home loan schemes.
SI.No Sources of media awareness No of respondents Percentage

1 Advertisement 8 16
2 Website 2 4
3 Friends 35 70
4 Self 5 10
5 Total 50 100
51
Analysis: From the above table indicates that 70% of respondents are about SBI home loan
through friends 16% of respondents they aware from the media advertisements, 10% of
respondents were aware self, and 4% of respondent they aware from websites.
Interpretation: From the above analysis it was found that 70% of total respondents are aware
about SBI home loan scheme through their social contacts like friends.
Graph No.10: Showing the sources of awareness about SBI home loan services.
Table No.11: Showing SBI’s competitive rate of interest.
SI.No Customer opinion on interest rate No of respondents Percentage

1 Strongly agree 15 30
2 Agree 25 50
3 Neither agree/ nor disagree 7 14
4 Disagree 2 4
5 Strongly disagree 1 2
6 Total 50 100
Analysis: From the above table are states that 50% of respondents agree, 30% of respondents
strongly disagree, 14% of respondent neither agree/no disagree, and 4% of respondents disagree
and 2% of respondents strongly disagree.
Interpretation: It can be clearly found that 50% of total respondents agree with the SBI offers
competitive interest when compared to other service provider.
52
Graph No.11: Showing SBI competitive rate of interest.
Table No.12: Showing type of interest rate opted.
SI.No Type of interest rate No of respondents Percentage

1 Floating 35 70
2 Fixed 15 30
3 Total 50 100
Analysis: From the above table is clearly that 70% of respondents prefer floating and 30% of
respondents prefer fixed interest rate.
Interpretation: From the above analysis it can be inferred that 70% of total respondents prefers
floating interest rate as it is beneficial to the customers when compared to fixed interest rate.
Graph No. 12: Showing type of Interest rate opted.
Table No.13: Showing that level of satisfaction during process of home loan.
SI.No Satisfaction level on home loan process No of respondents Percentage

1 Highly satisfied 10 20
2 Satisfied 30 60
53
3 Neither satisfied/ nor dissatisfied 5 10

4 Dissatisfied 4 8
5 Highly dissatisfied 1 2
6 Total 50 100
Analysis: From the above table it is indicates that 60% of respondents are satisfied, 20% of
respondents are highly satisfied, 10% of respondents neither satisfied/nor dissatisfied, and 8% of
respondents dissatisfied and 10% of respondents highly dissatisfied.
Interpretation: It can be inferred that 60% of total respondents were satisfied with home loan
process and the schemes at SBI because of early sanction of loan and good response.
Graph No.13: Showing that level of satisfaction during process of home loan.
Table No.14: Representing the reason for satisfaction of home loan process in SBI.
SI.No Satisfied reason on No of respondents Percentage

home loan process
1 Good response 26 65
2 Service 8 20
3 System 4 10
4 Interest rate 2 5
5 Total 40 100
54
Analysis: From the above table it indicates that 65% of respondents prefer for good response,
20% of respondents prefer for service 10% of respondents prefer for system and 5% of
respondents prefer for interest rate.
Interpretation: From the table it is found that 65% of the total respondents were satisfied
because they were experienced with good response from the SBI with their customers on home
loan process.
Graph No. 14: Responding the reasons for the satisfaction of home loan process in SBI.
Table No. 15: Showing the reasons for dissatisfaction in SBI home loan process
SI.No Reasons for dissatisfaction No. of respondents Percentage

1 Dissatisfied with services 2 20
2 Dissatisfied with system 4 40
3 Non co-operative 2 20
4 High interest rate 2 20
5 Total 10 100
Analysis: From the above table it is states that 40% of respondents were dissatisfied with the
system, 20% of respondents were dissatisfied with service, 20% of respondents were dissatisfied
with non co-operation from the bank and 20% of respondents were dissatisfied with the high
interest rate.
Interpretation: It can found that 40% of total respondents were dissatisfied with the system of
the SBI for their inflexible, rigid rules and regulations implemented in the bank home loan
procedure.
Graph No.15: Showing the reasons for dissatisfaction in SBI home loan process
Table No.16: Showing the problems faced during loan process.
55
SI.No Problem during home loan process No of respondents Percentage
1 Yes 10 20
2 No 40 80
3 Total 50 100
Analysis: From the above table it states that 80% of respondents have not faced any difficulty,
20% of respondents face difficulty.
Interpretation: From the above analysis it was found that 80% of total respondents did not have
any difficulties during the home loan procedure as the process was simple with minimum
documentation.
Graph No.16: Showing the problems faced during home loan process.
Table No.17: Showing the reasons for dissatisfaction

SI.No Reasons for dissatisfaction No of respondents Percentage
1 Delay in service 2 20
2 Behavior of employees is non 2 20
co-operative
3 No response from the bank 5 50
4 No safe and secure 1 10
5 Total 50 100
56
Analysis: From the above table it shows that 50% of respondents told no response from the
bank, 20% of respondents told behavior of employees is non co-operative, 20% of respondents
told delay in service and 10% of respondents told no safe and secure.
Interpretation: From the above analysis we found that 50% of total respondents mentioned that
there was no response from the bank about customer queries and complaints.
Graph No.17: Showing the reasons for dissatisfaction.
SI.No Association with SBI No of respondents Percentage

1 Less than one year 10 20
2 1-5 year 12 24
3 More than 5 year 28 56
4 Total 50 100
Table No.18: Showing length of association with SBI
57
Analysis: From the above table it is clearly shows 56% of respondents associated with SBI more
than five year, 24% of respondents associated with SBI not more than five year, 20% of
respondents associated with SBI less than one year.
Interpretation: It clearly found that 56% of total respondents associated with SBI more than
five years because of good response and service and this an indication of brand loyalty.
Graph No.18: Showing length of association with SBI.
FINDINGS, CONCLUSIONS, RECOMMENDATIONS:
FINDINGs:
1. It was found that 32% of respondents were in 31-40 age groups that indicate the earning
capacity is more in this category.
2. About 40% of respondents occupation were employees in different organization in
Bangalore and opted for home loan from SBI
3. From the analysis it shows that 52% of respondents belongs to the income level of RS
100000-300000 lakhs.
4. The study revealed that 90% of respondents were holding an account in SBI which
indicates that bank has rendered excellent service to them.
5. From the analysis it shows that 80% of respondents have saving account in SBI
6. The study shows that 90% of respondents were aware about SBI home loans from their
promotional activities adopted by SBI
7. It was found that 60% of respondents were interested to take loan for construction
purpose and hence for to fulfill their dream house.
58
8. The study revealed that 80% of respondents were satisfied with the SBI home loan
process and also services during the loan procedure.
9. From the analysis it shows 70% of respondents were satisfied with SBI home loan service
for good response and good service offered to the customers.
10. It was found that 70% of customers came to know about SBI home loan service through
their friends, relatives, advertisement, websites, self.
11. About 50% of respondents agreed that SBI offers competitive interest rate when
compared to the other banks.
12. The study revealed that 70% of respondents were interested in opting the floating interest
rate, because it is beneficial to the customers when compared to fixed interest rate.
13. From the analysis it shows that 60% of respondents were satisfied with the process of
home loan which indicates that easy sanction of loan, service and good response.
14. It was found that 65% of respondents were satisfied for good response in the process of
home loan in SBI
15. About 40% of respondents were dissatisfied with the process of home loan with the
system of SBI for their complex, rigid rules and regulation adopted by the bank.
16. The study revealed that 80% of respondents have not faced any problem during the
process of home loan and it represents that the banker co-operated and extended their
help to all their customers.
17. From the analysis it shows that 50% of respondents were dissatisfied as they specified
that the bank did not respond to customer queries and complaints.
18. It was found that 56% of respondents were association with the bank from more than five
years that indicates the brand loyalty towards the bank.
59
CONCULSION:
State Bank of India is one of the prime public sector banks in India. over the years it was grown
as a major bank. SBI home loan is given to customer who is 21 years of age or above with a
steady income may apply for the home loan.
➢ Home loans have long period when compared to other home loans.so peoples are
confused to take a home loan.
➢ SBI has maintained good relationship with the peoples.
➢ The interest rates also somewhat low when compared to other banks.
➢ For disbursement process is also it will take low time when compare to other banks.
➢ The loan sanction process is fast when compared to other banks.
➢ The entry of more private players in the Bank Sector has expanded the product segment
to meet the different level of the requirement of the customers. It has brought about
greater choice of the customers.
➢ SBI has vast market and very firm grip on its traditional customers and monopoly of
products and services.
60
Finally the whole research was carried out in a systematic way to reach at exact results. The
whole research and findings were SBI home loan includes a special scheme which is advanced to
its existing home loan borrowers in order to meet the expenses of home renovation, repair,
furnishing and remodeling based on the objectives. However, the study had some limitation also
such as lack of time, lack of data, non-response, reluctant attitude and illiteracy of respondents,
which posed problems in carrying out the research, but proper attention was made to carry out
research in proper way and to make accurate conclusion for the SBI which may beneficial for
banks to enhance their customer base.
RECOMMENDATIONS:
The study has provided adequate useful data from the respondents have the following
recommendations are as follows.
1. To increase their customers, the SBI should provide specialized services in this sector.
These services can be such as proper guidance to the customer regarding the processing
of loans, especially for the customers who are illiterate.
2. To satisfy their customers and for good dealings in future, SBI should make prompt
disbursement of loan amount to the customers so that they can buy or construct their
dream home as early as possible.
3. The SBI should use easy procedure, or say, less lengthy procedure for the sanctioning of
loan to the customer. There should be less number of legal formalities, in case this exists,
then, these should be completed in less time. This will be helpful in attracting more
customers.
4. Although the interest rates on specific norms, yet customers seek les interest rate which
can lower their cost of house. So banks should try to lower their interest rates. Needles to
61
say, that the bank which is having lower interest rates, have the maximum clients for
loans.
5. SBI provide loan according to the repaying capacity of the customer and his/her
eligibility. Due to which, some customers are not able to get amount of loan needed by
them. So, SBI should often their norms regarding the loan amount.
6. The company has to take care of awareness creation about the products and services
among the customers.
7. The company has to reduce the mortality and administration charges.
8. The company has to reduce their interest rates on home loan products and services.
9. The company has to identify the potential customers.
10. Company should consider the present competition and should act according to the
customer needs and develop an in-house relationship marketing team.
11. The SBI should try to provide proper knowledge regarding their home loan schemes
specifically for the customer who are illiterate and who are unaware of the banking
schemes.
12. The bank should also focus on penetrating into the untapped rural marketing. The present
and potential customers should be valued an organization as this shall help the banker
expand its market across the nation.
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A Study on Home Loan Process

STATUS OF INDIAN BANKING INDUSTRY:

Major change in the conditions

Presidency Banks Act

First Five Year Plan

TRANSFORMATION JOURNEY IN STATE BANK OF INDIA

1. State Bank of Bikaner and Jaipur (SBBJ)

SBICI Bank Ltd (Banking Subsidiary, fully owned by SBI):

1. SBI Capital Markets Ltd

SBI Capital Markets Ltd (SBICAP)

SBICAP’s current focus is on infrastructure project advisory and syndication mandates,

SBI Funds Management Pvt Ltd (SBI FUNDS)

SBI DFHI Ltd (SBI DFHI)

SBI Factors and Commercial Services Pvt Ltd (SBI FACTORS)

SBI Cards & Payments Services Pvt. Ltd. (SBICPSL)

SBI General Insurance Company Limited

SBI Life’s Key Accomplishments:

2. SBI General Insurance Company Limited

NATURE OF BUSINESS CARRIED

VISION, MISSION AND QUALITY POLICY:

• To retain the banks position as the premier Indian financial services.

• Excellence in customer service.

SYMBOL AND SLOGAN

DIFFERENT PRODUCTS OF SBI:

Deposit Loans Cards Different Credit Cards

Branch Name: State Bank of India Akshayanagar

Akshaya Nagar, Ramamurthy Nagar

4. Shri. Dileep C. Choksi 19( c)

5. Shri S Venkatachalam Director 19(c )

6. Shri D. Sundaram Director 19(c )

7. Shri. G.D. Nadaf Officer Employee 19(c )

8. Dr. Vasantha Bharucha Director 19(d)

9. Dr. Rajiv Kumar Director 19(d)

ORGANISATION STRUCTURE OF SBI:

State Bank of India

Director Director Director

Executive Director Executive Director Executive Director

Shareholder Shareholder Shareholder

WORK FLOW MODEL:

The various stages of granting loan to customers were depicted below.

MCKINSEY’S 7S FRAME WORK:

Mar '09 Mar '10

Net Profit for the Year 9,121.23 9,166.05

STATEMENT OF THE PROBLEM:

OBJECTIVES OF THE STUDY:

SCOPE OF THE STUDY:

1. Minimum age 18 years as on the date of sanction.

To enhance loan eligibility you have option to add:

5. Should be a Government employee or should be an Income tax payer to the Government.

Margin (Special Festival Season Offer)

TYPES OF HOME LOAN

Loan Amount Processing Fee

Upto Rs.5 Lac Rs.1000/-

Above Rs.5 Lac and upto Rs.10 Lac Rs.2000/-

Above Rs.10 Lac and upto Rs.20 Lac Rs.5000/-

2. SBI Advantage Home Loan

(Base Rate: 8.25% p.a.)

Loan Amount Processing Fee

Above Rs.30 Lac and upto Rs.50 Lacs Rs.7,000/-

Above Rs. 50 Lacs and upto Rs. 75 Lacs Rs. 8,000/-

Loan Amount Processing Fee Processing Fee

The revised processing fee