A STUDY ON THE PROBLEMS OF STATE BANK OF INDIA AND ITS ANALYSIS

Submitted as a part of MBA I year Course Requirement By S.T.NIRANJANA 3511040151

Under the guidance of Prof DR.GAYATHRI

SRM B-SCHOOL FACULTY OF ENGINEERING AND TECHNOLOGY SRM UNIVERSITY (RAMAPURAM II) VADAPALANI, CHENNAI

BONAFIDE CERTIFICATE

This is to certify that S.T.NIRANJANA is a Bonafide Student of SRM B-School, SRM University, Vadapalani, Chennai. She / he is in the I year of Masters Degree Program in Business Administration (MBA). She / He has done this project under my guidance and supervision towards part fulfillment of I year MBA course.

Project Guide Date: Place:

HOD

DEPARTMENT SEAL

DECLARATION

I S.T.NIRANJANA , Reg no 3511040151 studying in I year MBA program at SRM B-School, SRM University, Vadapalani, Chennai, hereby declare that this project is an original work of mine and I have not verbatim copied / duplicated any material from sources like internet or from print media, excepting some vital company information / statistics, which are provided by the company itself.

Signature of the Student Date: Place:

ACKNOWLEDGEMENT

I wish to express my gratitude to Dr.N.VASUDEVAN, DEAN, SRM B SCHOOL for giving me an opportunity to do the Management Project in the company.

I express my sincere thanks to Prof T.P.NAGESH, HOD, SRM B SCHOOL for his support during my project period.

I express my thanks and gratitude to the management and staff of State bank of Indiakilpauk for permitting me to work with them on the project A study on the problems of state bank of India and its analysis.

I thank Mr.SUNDARAM(SBI relationship manager) for helping me in getting this valuable opportunity working for State bank of India-kilpauk.

I wish to extend my warm thanks to Prof Dr GAYATHRI for her guidance, constant help and encouragement throughout the preparation of this project.

Once again, I take this opportunity to acknowledge my sincere gratitude to all those who helped me to prepare this project and for their valuable guidance at all times.

ABSTRACT
State Bank of India (SBI) is the largest Indian banking and financial services company (by turnover and total assets) with its headquarters in Mumbai, India. It is state-owned.

This project contains the detail of the company background, its functioning and the scope significance. State Bank of India (SBI) is the largest Indian banking and financial services company. Though state bank of India is a mammoth public sector bank it also has few flaw in the operation if this flaws are rectified SBI can be much more successful than what they are now. The project is dealing with the identification of the problem and its analysis. This project on analyzing the problems of state bank of India is based on the customer point of view. It is hoped that the solution of the project will give an insight to management problems and ultimately yield effective programs. One important outcome of the project will be management recommendations for consideration to the company that will assists for the rectification of the problem. It is also expected that the findings and suggestions will contribute to a small extent to the company by knowing the view of the customers and their expectation. The project is fully based on the survey conducted from the customers of SBI. Research methodology is used for analyzing the problem and given possible solution. The data collected for the research methodology is based on the primary and secondary data. With this data the observation can be done. The sample for the survey is 50. From the sample survey the problem can be observed. The tool which is used for finding whether the hypothesis found is accepted or rejected is done through the chi square test. Some of the cases are also given in project which has the same problem identified in the project. The solution which is given to the problem analyzed is fully based on the management concepts.

TABLE OF CONTENTS
Chapter Title Page Number

INTRODUCTION 1.1 COMPANY BACKGROUND 1.2 OBJECTIVES 1.3 NEED FOR THE STUDY 1.4 SCOPE & SIGNIFICANCE

PROBLEM & ANALYSIS 2.1 PROBLEM IDENTIFIED 2.2 IMPLICATION OF THE PROBLEM 2.3 MAJOR OBSERVATIONS 2.4 SOLUTIONS

SUGGESTIONS & CONCLUSION 3.1 SUGGESTIONS FOR IMPROVEMENT 3.2 CONCLUSION

CHAPTER 1 INTRODUCTION

1.1

COMPANY BACKGROUND

State Bank of India (SBI) is the largest Indian banking and financial services company
(by turnover and total assets) with its headquarters in Mumbai, India. It is state-owned. 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 in turn became State Bank of India. The government of India nationalized the Imperial Bank of India in 1955, with the Reserve Bank of India taking a 60% stake, and renamed it the State Bank of India. In 2008, the government took over the stake held by the Reserve Bank of India. SBI provides a range of banking products through its vast network of branches in India and overseas, including products aimed at non-resident Indians (NRIs). The State Bank Group, with over 16,000 branches, has the largest banking branch network in India. SBI has 14 Local Head Offices and 57 Zonal Offices that are located at important cities throughout the country. It also has around 130 branches overseas. With an asset base of $352 billion and $285 billion in deposits, SBI is a regional banking behemoth and is one of the largest financial institution in the world. It has a market share among Indian commercial banks of about 20% in deposits and loans. The State Bank of India is the 29th most reputed company in the world according to Forbes. Also SBI is the only bank featured in the coveted "top 10 brands of India" list in an annual survey conducted by Brand Finance and The Economic Times in 2010.

The State Bank of India is the largest of the Big Four banks of India, along with ICICI Bank, Punjab National Bank and HDFC Bank its main competitors. The State Bank of India is India's largest commercial bank. The bank has been striving sincerely to adhere to the efforts of providing utmost customer satisfaction to the best possible extent. Products & Services Personal Banking NRI Services Agriculture International Corporate SME Domestic Treasury SBI Retail Banking The following services are provided under Retail Banking:Term Deposits Recurring Deposits Housing Loan Educational Loan Personal Loan For Pensioners Against Mortgage of Property Against Shares & Debentures Plus Scheme Medical-Plus Scheme Rates of Interest

Apart from these, SBI also provides several other NRI services. The State Bank of India has its presence all over India with 16,000 branches. Not only this, the bank has made its roots secured internationally as well. At present, SBI has 131 branches in 32 countries. 1.2 OBJECTIVES These are the reason behind nationalization of banks To use financial institution as the instrument for promoting economic and social development in a more purposeful manner, to overcome the monopoly over financial resources the government of India nationalized 20 commercial banks.
NATIONALISATION OF 14 BANKS

On 19TH July 1969 the nationalization whereby following banks are nationalized Bank of India Central bank of India Union bank of India United bank of India United commercial bank Bank of Baroda Bank of Maharashtra Punjab national bank Indian bank Indian overseas bank Dena bank Allahabad bank Syndicate bank Canara bank State bank of India Andhra bank Oriental bank of commerce State bank of bikaner and Jaipur

Objectives of SBI: Like every other nationalized bank SBI has the same set of Objective, they are as follows Social Welfare: It was the need of the hour to direct the funds for the needy and required sectors of the Indian economy. Sector such as agriculture, small and village industries were in need of funds for their expansion and further economic development. Controlling Private Monopolies: Prior to nationalization many banks were controlled by private business houses and corporate families. It was necessary to check these monopolies in order to ensure a smooth supply of credit to socially desirable sections. Expansion of Banking: In a large country like India the numbers of banks existing those days were certainly inadequate. It was necessary to spread banking across the country. It could be done through expanding banking network (by opening new bank branches) in the un-banked areas. Reducing Regional Imbalance: In a country like India where we have a urban-rural divide; it was necessary for banks to go in the rural areas where the banking facilities were not available. In order to reduce this regional imbalance nationalization was justified: Priority Sector Lending: In India, the agriculture sector and its allied activities were the largest contributor to the national income. Thus these were labeled as the priority sectors. But unfortunately they were deprived of their due share in the credit. Nationalization was urgently needed for catering funds to them. Developing Banking Habits: In India more than 70% population used to stay in rural areas. It was necessary to develop the banking habit among such a large population.

1.2

NEED OF THE STUDY State Bank of India (SBI) is the largest Indian banking and financial services

company. Though state bank of India is a mammoth public sector bank it also has few flaw in the operation if this flaws are rectified SBI can be much more successful than what they are now. The study is dealing with the identification of the problem and its analysis. Against this background it is felt that there is greatest need for the study on Effectiveness of state bank of India This study on analyzing the problems of state bank of India will be of immense help both to the researcher and the organization. It is hoped that the results of the study will give an insight to management problems and ultimately yield effective programmes. One important outcome of the study will be management recommendations for consideration to the company that will assists for the rectification of the problem. It is also expected that the findings of the study will contribute to a small extent to the company by knowing the view of the customers and their expectation. OBJECTIVES OF THE STUDY 1. 2. 3. 4. 5. To study the profile of STATE BANK OF INDIA To inquire whether the organization has met the customer expectations. To suggest measures for improving for the effectives of the organization. To examine the problem and its analysis using various research methodology To study the various techniques used in the organization.

1.3
SCOPE

SCOPE & SIGNIFICANCE

1) Borrows money: - The Bank borrows money from the public by accepting deposits such as current account deposits, fixed deposits and savings deposits. (2) Lends money: - It lends money to merchants and manufacturers for short periods. It also lends to farmers and co-operative institutions. It lends mostly on the security of easily realizable commodities like rice, wheat, cotton, oil-seeds, cloth, gold and government securities. The Bank can lend against agricultural bills up to a maximum period of fifteen months and incase of other bills up to a maximum period of six months (3) Banker's Bank:-The State Bank of India acts as the banker's bank. In discharging this responsibility, the bank provides loans to commercial bank when required and also rediscount their bill. It also acts as the clearing house of the commercial bank. (4) Government's Bank: - The State Bank of India also acts as the agent of the Reserve Bank of India. As an agent, the State Bank of India maintains the treasuries of the State Government. The Bank also manages the debts floated by the State Governments. (5) Remittance: - The State Bank of India facilitates remittance of money from one place to another. It also helps in the transfer on the funds of the State and Central Government. (6) Functions as Central Bank: - The State Bank of India performs the functions of a Central Bank that is the RESERVE BANK OF INDIA. (7) Subsidiary functions:- The State Bank performs various subsidiary services also. It collects checks, drafts, bill of exchange, dividends interest, salaries and pensions on behalf of its customers. It purchases and sells securities on behalf of its customer. It receives valuables and documents for safe custody and maintains safe deposit vaults.

SIGNIFICANCE

1. Banking and Capital Formation: Capital formation is the basic factor for economic development. Capital formation means creation of physical assets like machines and buildings which increase productive capacity of a country, for capital formation savings are required which are largely mobilized by state bank of India. 2. Banking and Investment: The pattern of investment and its quantum that are carried on depend to a large extent on the banking system. An entrepreneur may wish to introduce innovations and this affects economic development positively. State bank of India Bank credit enables entrepreneurs to innovate and invest, and thus promote economic activity. 3. Banking and Industry: State bank of India are helping industries by providing them credit for establishing new units and updating and expanding the old units. 4. Banking and Agriculture: State bank of India are helping farmers to develop agriculture for providing them long term finance for buying tractors and installing tube-wells. 5. Banking and Trade: State bank of India are also helping trade by providing short-term and long-term finance.

CHAPTER 2 PROBLEM & ANALYSIS

2.1 PROBLEM IDENTIFIED

State Bank of India (SBI) is the largest Indian banking and financial services company. Though state bank of India is a mammoth public sector bank it also has few flaw in the operation if this flaws are rectified SBI can be much more successful than what they are now. The problem and analysis are stated below a) Lack of technology awareness among the customers: Usage of technology such Internet banking, mobile banking has less awareness among the customers of State bank of India. b) Difficulty in availing loans : There are different types of loans in SBI. Some of important and often availed loans are vehicle loan, education loan, home loan and personal loan. The customers of State bank of India find difficulty in availing loans. c) Problems in automatic teller machine(ATM) : Most of the customers are using ATM of SBI. People face problem in ATM at the crisis situation. d) Lack of customer satisfaction: State bank of India is customer friendly but some time SBI does not the customer satisfaction level. e) Account activation problems: A Bank account is a financial account recording the financial transactions between the customer and the bank and the resulting financial position of the customer with the bank. Customers also face problem in account activation.

2.2

IMPLICATIONS OF THE PROBLEM

The implication of the problems is based on the customer view. The effects of the problem need to be analyzed and also discuss the seriousness of the problem ,as this may help may help State bank of India to decide what are the measures to be taken in order to solve the problem and to attain high level of customer satisfaction. Lack of technology awareness among the customers Customer in this modern era started using the technology available to them. SBI has come out with such technology such as INTERNET BANKING, MOBILE BANKING and ONLINE TRANSACTIONS. With this technology advancements customer find it easy to have money transaction and it also saves their time. Though SBI uses most advanced tools and technique still many customer are not aware of the technology available to them. These internet banking, mobile banking and other online transactions are mostly used by the age group (21-40) and above 40 years are not aware of what is internet banking and mobile banking? SBI has failed to spread awareness to the customer and hence the usage of internet banking and mobile banking is reduced. The transactions in SBI Internet banking and mobile banking are complex. Customer also feels that it is long process for registration and there is so many restrictions for opening internet banking account. In internet banking and mobile banking customers also face the of not getting the notification .so they feel that internet banking usage is not safe and secure. Many of the customer have faced problem while logging in and this is mainly due to the process of transaction. That is the customers are given a user Id and a password. If there is any problem occurring the total transaction will get failed. The customers also face problem at the time of changing the password, sometime even after changing the password the process of logging in the account gets failed.

CASE 1: Transaction Problems We, M/s Malabar Granite Metals (A Granite Metal Crushing Unit), Mannannur P.O Vaniyamkulam, Ottappalam Palakkad District has been opened a Current A/c with SBI Vaniyamkulam Branch and applied for Internet Banking facility to make our Sales Tax & Income Tax through the same. As per the new tax payment system, we are unable to make any payments manually. From the said bank, we have been allotted a Kit having a temporary user name and password. By the request from the bank personal, we have changed the user name and password from the first login. As per the instructions from him we had set the transaction values with a limit of Rs.2,00,000.00/transaction. There are no more instructions given from him. at the time of our sales tax have to done, we tried to do the same, with the changed login password. But after completing the procedures, the system demanding for a transaction password. as we are new people with the net banking the have to give the detailed instructions at the beginning. now the saying that they are helpless to do any service and if we wants to operate internet banking we have to open a new account and they are not giving any security for the smooth functioning of any new account. Rs. 2, 84,000.00 were pending with the account. A/c Details are given below. Name: Malabar Granite Metals (T M Thomas Managing Partner) Corporate Id with the bank 167066 Account No.30979237784 Type Current Account Kindly do the favor for us at the earliest Thanks 'N' Regards Rajeev Konni (Accounts Manager, Malabar Granite Metals)

Difficulty in availing loans: Loans are the important functioning of State bank of India. It is the important functioning which led to the capital formation. There are many loans which are available to the customers. They are SBI Loan for Pensioners Loan against Mortgage of Property SBI Housing Loan Loan against Shares & Debentures SBI Car Loan SBI Educational Loan SBI Personal Loan The customers of SBI found difficulty in availing loans. In a loan, the borrower initially receives or borrows an amount of money, called the principal, from the lender, and is obligated to pay back or repay an equal amount of money to the lender at a later time. Typically, the money is paid back in regular installments, or partial repayments; in an annuity, each installment is the same amount. The loan is generally provided at a cost, referred to as interest on the debt, which provides an incentive for the lender to engage in the loan. In a legal loan, each of these obligations and restrictions is enforced by contract, which can also place the borrower under additional restrictions known as loan covenants. Although this article focuses on monetary loans, in practice any material object might be lent. Acting as a provider of loans is one of the principal tasks for financial institutions. For other institutions, issuing of debt contracts such as bonds is a typical source of funding. The major problem the customer of the state bank of India feels that the process for loan is a long process. The customer has to wait for a long period in order to avail the loan facility.

CASE 2:

SBI home loan I have applied a home loan SBI Erandwane Branch PUNE.I supplied all the documents on January 6th, 2010 even my valuation report and search report has been completed. Whenever I call the person (Mr. Adaekar) for getting the status, he says it is under process. It was really a painful experience of my home loan application with SBI. I have wasted 2 months of time without even having success. Till now 5th March 2010 there is no improvement in the process of sanctioning the loan. I dont know why there is delay in processing the loan. Are they looking for bribe or any recommendation for giving loan, I am not sure. I dont know how to get the home loan as soon as possible as they are not at all responding or sanctioning loan. Secondly customer also face problem in interest rate and pay back period of the loan. Most of The customers finds difficulty in paying the loan with a huge interest which is not affordable for a middle income level group. Case 3: Interest rate I have home loan with SBI at time of disbursement the bank has offer me rate of interest 8% in 2009 immediately after one year Bank has started rate of interest 12%n without any information. I request number of time to RACP for details but no information. My Account number is 30686163370

Problems in automatic teller machine (ATM):

An automated teller machine (ATM), also known as a Cash Point. ATMs are known by various other names including automatic banking machine, cash machine, and various regional variants derived. On most modern ATMs, the customer is identified by inserting a plastic ATM card with a magnetic stripe or a plastic smart card with a chip, that contains a unique card number and some security information such as an expiration date or CVVC .Authentication is provided by the customer entering a personal identification number (PIN). Using an ATM, customers can access their bank accounts in order to make cash withdrawals, credit card cash advances, and check their account balances as well as purchase prepaid cell phone credit. Thus ATMs often provide the best possible exchange rate for foreign travelers and are heavily used for this purpose as well. ATM is the modern advancement which makes the work of the customer easy. It is a 24*7 service hence the customer can withdraw the money whenever he is in need of it, but the customer are also facing problem with Automatic teller machine (ATM). Many times ATM has the problem of stock out of cash .when the customer is in the crisis situation of withdrawing at that time if the customer face the problem of stock out of cash then the customer satisfaction level will be reduced. Most important and often faced problem is even after failing the withdrawal transaction and still the amount is been debited from the account. This leads to customer dissatisfaction on SBI.

CASE 4:

I went to SBI ATM in Chennai to withdraw Rs 20000 using my SBI ATM card on 2212-08. No cash came out of the machine and also no transaction slip came out stating that the transaction failed. On the very next day I came to know that Rs 20000 was deducted from my SBI account. I reported it to the bank on that day. you are requested to restore for rs 40000 at the earliest. Appropriate steps should be taken against this. THANKING YOU Prakash

Lack of customer satisfaction:

SBI is a large sector dealing with huge customers. As the bank provides lot of services to the customer, some of the services were not satisfactory to the customer. Mainly SBI customers were satisfied with staff. They feel that their responds to the problem or in case of clarification is not satisfactory. Mostly the problems related to ATM services, loans, account transactions, internet banking and mobile banking need more clarification. But state bank of India fails to respond properly to their problems. The customer mostly says that SBI delays and takes more time to rectify the problem. The customers are not able to reach the staffs after 1 pm even during the crisis situation. This is the main problem faced by the customers of state bank of India.

Case 5: I have a savings account (savings account number: 1090854XXXXX) with SBI Mathura branch. Four months back I lost my ATM card so I requested in the branch for a new ATM card. They told me an amount of 200 will be the charge for replacement .after one month I got my new ATM card then as bank process I should go to branch for collecting my pin number. Next day when I went to branch they informed me that the PIN number has not arrived and they told me to come after a week. .After one week when I contacted the branch they gave me the same answer to wait for a week Again. Again I went to bank to collect my PIN but they said it didnt come yet. After my strict behavior they told me to write a letter complaining about this. After all this also I didnt get my PIN. I want them to give my ATM pin. Case 6: The account no. 11180031610 is a loan account in State bank of India. It is to be realized through advanced / postdated cheques. The bank started realization of the loan amount through the cheques from March 2007. It is also being noted that the mode of payment is through postdated cheques. The bank kept on realizing the loan amount in aforesaid manner till February, 2008 i.e. 4. 2. 2008. And then it suddenly stopped the realization of loan without rhyme or reason. No communication was sent to me for changing the preferred mode of repayment. Therefore the loan which should have been paid by February 2010 is still pending due to inordinate delay of bank in realizing the loan. I have contacted the bank and the Ombudsman, but no response. I am facing problem and mental harassment because of their mistake. I want them to close the loan account by realizing the required money.

Account activation: A Bank account is a financial account recording the financial transactions between the customer and the bank and the resulting financial position of the customer with the bank. Customers also face problem in account activation. The customers of SBI even face problem in account activation. The transaction should be done properly as it deals with the inflow and outflow of cash. The customer of SBI feels that it is delayed in case of transfer of account from one state to another. The process of changing the account from one place to another is not easy in case of SBI. The other problem which is regarding to the account are delay in getting the card facility like debit card and credit card. The process of getting the card is long. The customers also face problem regarding the scheme offered in SBI. Most of the people in the age group of 51-60 face problem regarding the pension scheme. Case 7: I am a retired IAF pensioner drawing pension from SBI (code-0159) since April, 2007. My account no is 10954339715. I received my corrigendum for my pension (PPO no 08/14/B/CORR/64756/2010) as per sixth CPC in the month of April, 2010 and the same was received by SBI. This is the letter sent for the revised rate of the pension. Also when I visited and enquired about it in SBI in the month of May, 2010, the person dealing with pension told me that PPO is forwarded to the headquarter of SBI and amount will be credited to my account soon. Now 10 months passed but still I did not get my arrears nor the revised rate of pension. My several visit to the bank gone in vain. In the month of December, 10 the dealing staff told me that my original PPO with SBI might be missed. So I have to submit my verified documents that were supposed to be forwarded to Patna with reminder. The same also I submitted in last December but no result so far. I should be paid my arrears along with interest as per RBI guidelines and new rate of pensions should start immediately.

2.3 MAJOR OBSERVATIONS

RESEARCH METHODOLOGY The research design is descriptive in nature. As for that the researcher has made an attempt to study different factors involved in analyzing the problems. So the researcher can adopt the above indicated research design. The objective of the study is to identify the problem and providing the best possible solution. The sample size for the study is 50. The researcher has selected the samples from the customers of state bank of India. So the researcher has adopted Simple Random Sampling Method for this study. PRIMARY DATA Primary data should be fresh one and happen to be original in character. In this study the researcher has collected the primary data through structured questionnaire. SECONDARY DATA Secondary data is one which someone else has already collected and which has already been passed through the statistical process. This data may be a published data or an unpublished data. In this study the researcher has collected secondary data from various books and from the World Wide Web, the internet. TOOLS USED FOR DATA ANALYSIS Appropriate statistical technologies are used to supplement the analysis and data interpretation. Statistical techniques like simple frequency Tables, Percentages, Chi-Square test, factor Analysis are applied with the help of SPSS (Statistical Package tool for Social Science) at the appropriate Juncture. Bar charts and Pie diagrams have also been to substantiate the data.

ANALYSIS AND INTERPRETATION Table 1.1 Respondents Classification

Sl. No 1. 2. Male Female Total Source: Field Data

Particulars

Frequency 28 22 50

Percentage 56 44 100

Table 1.1 shows that 56 % of the respondents are Male and 44 % of the respondents are Female. Thus, majority of the respondents are Male.

Table 1.2 Respondents Age (in Years)

Sl. No 1. 2. 3. 4. 5. Particulars 21 30 Years 31 40 Years 41 50 Yeas 51 60 Years 61 And Above Years Total Frequency 32 9 7 2 0 50 Percentage 64 18 14 4 0 100

Source: Field Data Table 1.2 shows that 64 % of the respondents belonged to the age group 21 30 years of age, 18 % of the respondents were of the age group 31 40 years, 14% of the respondents were 41-50 years of age, only 4 % of them belonged to the age group 51 60 years of age, and none of the respondents were above 61 years Thus, majority of the respondents belonged to the age group 21 30 years of age.

Table 1.3 Educational Qualification

Sl. No 1. 2. 3. 4. 5. UG PG Professional Degree HSC Others Total Particulars Frequency 11 9 16 1 13 50 Percentage 22 18 32 2 26 100

Source: Field Data Table 1.3 shows that 32 % of the respondents have done their professional degree, 26 % of the respondents have fallen under the category of OTHERS that is with diploma, ITI and other certificate courses, 22 % of them have pursued UG degree, 18 % of the respondents pursued PG degree and only 2 % have achieved HSC Certificate. Thus, majority of the respondents in this study have done their Professional Degrees.

Table 1.4 Annual Income

Sl. No 1. 2. 3. 4.

Particulars Less Than 100,000 100,001 - 200,000 200,001 300,000 300,000 & Above Total

Frequency 6 8 12 24 50

Percentage 12 16 24 48 100

Source: Field Data Table 1.4 shows that 48 % of the respondents have their income range of 300,000 and above, 24 % of the respondents income range falls between 200,001 300,000, 16 % of the respondents earn between 100,001 - 200,000, only 12 % has the income range of Less Than 100,000. Thus, majority of the respondents in this study earns more than 300,000

Internet Banking
Table 1.5 (a) Log in Problems
Sl. No 1. 2. 3. 4. 5. Particulars Strongly Agree Agree Neutral Disagree Strongly Disagree Total Frequency 8 14 12 12 4 50 Percentage 16 28 24 24 8 100

Source: Field Data From Table 1.5 (a), it is inferred that 28 % of the respondents have Agreed that they have problems while logging in, while 24 % disagreed with it and 24 % were neutral, 16 % of the respondents Strongly Agreed that they have problems while logging in and 8 % of them Strongly Disagreed it. Thus, Majority of respondents have agreed that they have problems with logging in on SBI Internet Banking.

Table 1.5 (b) Complex Transaction Process

Sl. No 1. 2. 3. 4. 5. Particulars Strongly Agree Agree Neutral Disagree Strongly Disagree Total Frequency 4 22 12 7 5 50 Percentage 8 44 24 14 10 100

Source: Field Data From Table 1.5 (b), it is inferred that 44 % of the respondents have agreed that Transaction process via Internet Banking is complex, 24 % were neutral on this factor, 14 % of the respondents Disagreed that Transaction process is not complex, 8 % of them strongly agreed it while 10 % of them strongly disagreed with it. Thus, Majority of respondents have agreed that Transaction process via Internet Banking is complex

Loans
Ease of Access for Loans Table 1.6 (a)

Sl. No 1. 2. 3. 4. 5.

Particulars Strongly Agree Agree Neutral Disagree Strongly Disagree Total

Frequency 3 6 16 20 5 50

Percentage 6 12 32 40 10 100

Source: Field Data From Table 1.6 (a), it is inferred that 40 % of the respondents have disagreed with SBI is easily accessible for Loans, 32 % were neutral on this factor, 12 % of the respondents agreed that SBI is easily accessible for Loans, 6 % of them strongly agreed it while 10 % of them strongly disagreed with it. Thus, Majority of respondents have agreed disagreed with SBI is easily accessible for Loans.

Long Processing Time Table 1.6 (b)

Sl. No 1. 2. 3. 4. 5.

Particulars Strongly Agree Agree Neutral Disagree Strongly Disagree Total

Frequency 9 25 9 3 4 50

Percentage 18 50 18 6 8 100

Source: Field Data Table 1.6 (b) shows that 50 % of the respondents agreed that processing time for a Loan Request is long, 18 % of them Strongly Agree with it, while another 18 % of the respondents stood neutral on this analyzing factor, 8 % of the respondents strongly disagree that processing time for a Loan Request is not long, 6 % of the respondents Disagree with respect to the same. Thus, majority of the respondents in this study agrees that processing time for a Loan Request is long.

Automatic Teller Machine

Out of Cash Problems Table 1.7

Sl. No 1. 2. 3. 4. 5.

Particulars Strongly Agree Agree Neutral Disagree Strongly Disagree Total

Frequency 11 22 5 10 2 50

Percentage 22 44 10 20 4 100

Source: Field Data Table 1.7 shows 44 % of the respondents agreed SBI ATM has Out of Cash Problems, 22 % of the respondents strongly agree with it, 20 % of the respondents disagree that SBI ATM has out of Cash and 4 % strongly disagree with the same, 10 % of them stayed neutral on this analyzing factor. Thus, majority of the respondents in this study agreed SBI ATM has Out of Cash Problems.

SBI Staff Responds well

Table - 1.8

Sl. No 1. 2. 3. 4. 5.

Particulars Strongly Agree Agree Neutral Disagree Strongly Disagree Total

Frequency 11 24 4 6 5 50

Percentage 22 48 8 12 10 100

Source: Field Data Table 1.8 shows 48 % of the respondents agreed SBI Staffs responds well on clarifying doubts, 22 % of the respondents strongly agree with it, 12 % of the respondents disagree that SBI Staffs responding well on clarifying doubts and 10 % strongly disagree with the same, 8 % of them stayed neutral on this analyzing factor. Thus, majority of the respondents in this study agreed SBI Staffs responds well on clarifying doubts

STATISTICAL ANALYSIS CHI SQUARE TEST

TABLE 1 Hypothesis: Ho : There is no significant relation between the age and the usage of technology of SBI Hi : There is significant relation between the age and the usage of internet banking

AGE

21-40 Do you use Internet Banking NO 08 YES 44

41-60 06

TOTAL 50

17

25

TOTAL

52

23

75

Chi-Square Test, Calculated values of Degrees of freedom

2 = (Oi Ej) 2/Ej 2 = 25.972

= (r-1) (c-1) = ( 2-1)(2-1)=1

Level of significance

= 5%

Table value of 2 at 5 % level of significance with degree of freedom is 3.841

Inference: Since the calculated value of Chi-Square is more than the Table value we reject the null hypothesis (Ho). Hence there is significant relation between Age and the usage of technology (internet banking) in SBI.

Table 2 Hypothesis: Ho: There is no significant association between the income level and availing of loans in SBI

Hi: There is significant association between the income level and availing of loans in SBI.

SALARY

Do Loans

You

Up to 3,00,000

Prefer SBI YES NO TOTAL Chi-Square Test, Calculated values of Degrees of freedom Level of significance 26 07 33 2 = (Oi Ej) 2/Ej 2 =

3,00,000 & above 33 09 42

TOTAL

59 16 75

0.0374

= (r-1) (c-1) = (2-1) (2-1) = 1 = 5%

Table value of 2 at 5 % level of significance with degree of freedom is 3.841 Inference: Since the calculated value of Chi-Square is less than the Table value we accept the hypothesis. There is no significant association between the income level and availing of loans of SBI.

2.4 Solution: Awareness among the customers: Organization must create awareness to all the age group about the usage of

Technology in SBI. SBI technology includes internet banking, mobile banking and online transactions. The awareness can be created by giving advertising and SBI can display the steps to be used in internet banking, mobile banking and Online transactions. This will enable to increase the usage of technology of SBI. Most of the customers felt that the transaction of this technology is complex. SBI Should make necessary steps which increase the usage rate.

Reduce the interest rate Most of the customers feel that the interest rate is high in SBI. Customers feel that It is difficult to pay if the interest rate is high and the customers are also not Satisfied with the payback period of SBI. The customers should make necessary Steps to reduce the interest rate of SBI. This will increase the customer satisfaction.

Periodic check of the status of cash in ATM: Most of the respondent responded that says that SBI ATM sometime run out of Cash. SBI ATM sometime has the problem of unavailability of cash mostly at the Crisis situation. SBI should have a indicating machine which will indicate the When there is stock out of cash. This will enable to rectify unavailability of cash in ATMs.

Training program to the employees of SBI: The customers of SBI says that the staffs are not responding properly in case of

any clarification. The customers have doubt mainly in internet banking, mobile Banking, online transactions, loan criteria, ATM, and other account transactions. The training session will improve quality of the employee and this enable to solve the problems of the customers. This increase the satisfaction of the customer and enable customer loyalty to SBI.

Reduce the time period for sanctioning the loans: Most of the respondents feels that SBI delay the process of sanctioning the loan And SBI also reject the loan proposal even after submitting the clear documents. SBI should make necessary steps to reduce the processing time for sanctioning the loans. This will increase the customers who are availing loans in SBI. The Customer will find it easy to approach SBI for getting loans. Most of the Transactions in SBI are pertaining to the different types of loans. So these Remedies will help for customer loyalty and it also increase the profitability of the Company.

CHAPTER

FINDINGS, SUGGESTIONS AND CONCLUSION

FINDINGS

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. of

Majority of the respondents belonged to the age group 21-30 years of age. Majority of the respondents had more than 3 years of loyalty towards SBI. Majority of the respondents were of professional degree. Majority of the respondents belonged to the income group above Rs.3, 00,000. Majority of the respondents hold savings account. Majority of the respondents responded that the process of getting loan is long. Majority of the respondents responded that it is not easy to avail loan. Majority of the respondents faced problem while withdrawing cash in ATM. Majority of the respondents says that there is no awareness in usage of technology Such as internet banking and mobile banking in the age group of 41-60. Majority of the respondents preferred ATM of SBI. Majority of the respondents said that they faced problem while logging in the internet banking. Majority of the respondents agreed that the transaction in SBI internet banking is complex. Majority of the respondents agreed that SBI internet banking is safe and secure. Majority of the respondents agreed that SBI internet banking is easy to access. Majority of the respondents responded that they dont get notification after every Transaction in SBI. Majority of the respondents feel that the interest rate is high in SBI. Majority of the respondents were not satisfied with the payback period in SBI. Majority of the respondents responded that sometime they faced problem of Unavailability of cash in ATM. Majority of the respondents agreed the various schemes offered in SBI are excellent. Majority of the respondents agreed that the environment in SBI is pleasant. Majority of the respondents agreed that they dont get notification after every transaction of ATM. Majority of the respondents agreed that the service given in SBI is good. Majority of the respondents agreed SBI is friendly and easy to approach. Majority of the respondents that SBI staff does not respond and clarify in case any problem.

25. 26. 27.

Majority of the respondents agreed that the infrastructure in SBI is excellent. Majority of the respondents strongly agreed that applying of credit card takes a long time. Majority of the respondents agreed that SBI has rejected the loan proposal even after submitting the clear documents.

SUGGESTIONS 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Organization must create awareness to all the age group about the usage of technology (internet banking, mobile banking and online transactions) in SBI. SBI can reduce the interest rate for loans. SBI should make proper remedy like it can fix a machine which indicates cash Status so that the unavailability of cash in ATM. Management should give training program to the staffs of SBI for managing the Customers and improve the satisfaction level. Management should provide SBI should give notification to the customers after every transaction in internet banking, mobile banking, ATM and other online transactions. SBI should increase the payback period for loans. Management should reduce the time period for sanctioning loans and should avoid delay in the transaction of loan process. SBI should not delay in giving the credit card for the customers. The transactions in internet banking should be made simple.

CONCLUSION

As State bank of India (SBI) Marchs towards to achieve superior products and services to customers and maintain market leadership, evolve as an institution that serves the best interests of all stakeholders, pursue excellence through total quality management, ensure the highest standards of ethics and integrity in all actions. All these can be possible only when both the management and employees join together to achieve the customer delight through total quality.

The company should not lag behind in enhancing the best services which ultimately leads to increase the customer satisfaction level and business turnover which is very much necessary in this competitive business word. It is sure that STATE BANK OF INDIA (SBI) functioning with a noble mission would definitely achieve its vision in near future.

To sum up, the Researcher feels that the overall functioning of State bank of India (SBI) is at satisfactory level which is an appreciable factor in a Public Undertaking.

BIBLIOGRAPHY
Books :

1.

MODERN limited.

BANKING

THEORY

AND

PRACTICES

by

D.MURALIDHARAN, published by ASHOK K.GHOSH, PHI learning private 2. 3. 4. MONEY BANKING by HEATHER HAMMONDS, this edition first published in 2006 in the United States of America by smart apple media. RESEARCH METHODOLOGY by WANYNE GODDARD & STAUT MELVILLE BANKING MANAGEMENT AND FINANCIAL SERVICES, seventh edition By PETER S. ROSE & SYLVIA C. HUDGINS, Tata McGraw-Hill edition 2010. 5.
MANAGEMENT OF BANKING AND FINANCIAL SERVICES

by PADALATHA

SURESH & JUSTIN PAUL

On line Resources www.wikipedia.com www.books.google.co.in Online Literatures: www.sbi.co.in

SBI
NAME(optional): SEX: AGE: 21-30 Male 31-40

Questionnaire
Female

41-50

51-60 60& above

EDUCATIONAL QUALIFICATION: HSC UG PG Professional degree others

OCCUPATION: Business employee ANNUAL INCOME: Less than 1,00,000 2,00,001-3,00,000 NATURE OF ACCOUNT: Savings account Current account others 1,00,001-2,00,000 3,00,000 & above others

HOW LONG HAVE YOU BEEN THE CUSTOMER OF SBI: Less than 1 year 1-3 years above 3 years

HOW OFTEN DO YOU TRANSACT WITH YOUR ACCOUNT: Daily Weekly Monthly

Indicate how much you do agree with each of the following statement by ticking the appropriate column: (SA- Strongly agree, A- agree, N- neutral, DA- disagree, SDA- strongly disagree) no Questions Internet banking: SA A N DA SDA

1 2 3 4 5

Internet banking in SBI is safe and secure SBI internet banking is easy to access I have faced problem while logging in The transactions in internet banking is complex I am not getting the notification after every transaction
Loans:

6 7 8 9

It is easy to approach SBI for getting loans

I feel the transaction of getting loan is a long process

I feel the interest rate is high in SBI SBI has rejected the loan proposal even after

submitting the clear documents 10 I am not happy with the payback period in SBI
Automatic teller machine(ATM):

11 12 13 14 15

I have faced problem while withdrawing the cash I dont get notification after every transaction ATM of SBI sometime has the problem of unavailability of cash I have faced problem like stuck of the ATM card ATM service is good in SBI
General questions:

16 17 18 19 20

SBI is friendly and easy to approach I like all the schemes offered in SBI The services of SBI makes me comfortable SBI staff respond and clarify in case of any problem The environment in SBI is pleasant

ANY SUGGESTIONS FOR IMPROVISATION :