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Project Report: Retail Asset Products of SBI

In Partial Fulfillment of PGDB course of IFBI

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Table of Contents
Sr. No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. Topic Pag e No. 3 4 4 4 5 6 7 7 8 10 11 12 14 14 16 19 22 23 25 26 27 28

Overview of SBI Symbol and Slogan of SBI Branches of SBI Associate Banks of SBI International Presence Management Shareholding Pattern and Liquidity Key Areas of Operation History of SBI Competitors of SBI Different Products of SBI Awards and Recognition Project Study - Retail Asset Products of SBI i. Home Loan ii. Car Loan iii. Education Loan iv. SBI Personal Loan v. Loan against Property/Gold Ornaments vi. Loan against Shares/Debentures 14. SWOT Analysis of SBI 15. Conclusion 16. Bibliography and References

State Bank of India (SBI) is the largest banking and financial services company in India by revenue, assets and market capitalization. It is a state-owned corporation with its headquarters in Mumbai, Maharashtra. As of March 2011, it had assets of US$370 billion with over 13,000 outlets including 150 overseas branches and agents globally. 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 banksBank of Calcutta and Bank of Bombayto form the Imperial Bank of India, which in turn became the 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). SBI has the largest branch and ATM network spread across every corner of India. The bank has a branch network of over 16,000 branches. Apart from Indian network it also has a network of 157 overseas offices in 32 countries in all time zones, correspondent relationship with 520 International banks in 123 countries. SBI has 14 local head offices situated at Chandigarh, Delhi, Lucknow, Patna, Kolkata, Guwahati (North East Circle), Bhuwaneshwar, Hyderabad, Chennai, Trivandram, Banglore, Mumbai, Bhopal & Ahmedabad and 57 Zonal Offices that are located at important cities throughout the country. It also has around 130 branches overseas. SBI is a regional banking behemoth and is one of the largest financial institutions in the world. It has a market share among Indian commercial banks of about 20% in deposits and loans. The State Bank of India is the 29th most reputed company in the world according to Forbes. Also, SBI is the only bank featured in the coveted "top 10 brands of India" list in an annual survey conducted by Brand Finance and The Economic Times in 2010. SBI is ranked #292 globally in Fortune Global 500 list in 2011. The State Bank of India is the largest of the Big Four banks of India, along with ICICI Bank, Punjab National Bank and HDFC Bankits main competitors. State Bank of India is the largest and one of the oldest commercial bank in India, in existence for more than 200 years. The bank provides a full range of corporate, commercial and retail banking services in India. In recent past, SBI has acquired banks in Mauritius, Kenya and Indonesia. The bank had total staff strength of 222,992 as on 31st March, 2011. Of this, 29.51% are officers, 45.19% clerical staff and the remaining 25.30% were sub-staff. The bank is listed on the Bombay Stock Exchange, National Stock Exchange, Kolkata Stock Exchange, Chennai Stock Exchange and Ahmedabad Stock Exchange while its GDRs are listed on the London Stock Exchange. SBI group accounts for around 25% of the 3

total business of the banking industry while it accounts for 35% of the total foreign exchange in India. With this type of strong base, SBI has displayed a continued performance in the last few years in scaling up its efficiency levels.

Symbol and slogan

The symbol of the State Bank of India is a circle and a small man at the center of the circle (and not a key hole). A circle depicts perfection and the common man being the centre of the bank's business. Slogans : "Pure banking nothing else" also includes : "With you - all the way" and : "a bank of common man"

Branches of SBI

State Bank of India has 172 foreign offices in 37 countries across the globe. SBI has about 25,000 ATMs (25,000th ATM was inaugurated by the then Chairman of State Bank Shri O.P. Bhatt on 31 March 2011, the day of his retirement); and SBI group (including associate banks) has about 45,000 ATMs. SBI has 21,500 branches, including branches that belong to its associate banks. SBI includes 99345 offices in India. India's number one ADB is in bellary i.e. State bank of India bellary ADB

Associate Banks of sbi

SBI has five associate banks; all use the same logo of a blue circle and all the associates use the "State Bank of" name, followed by the regional headquarters' name:

State Bank of Bikaner & Jaipur State Bank of Hyderabad State Bank of Mysore State Bank of Patiala State Bank of Travancore

Earlier SBI had only seven associate banks that constituted the State Bank Group. Originally, the then seven banks that became the associate banks belonged to princely states until the government nationalized them between October 1959 and May 1960. In tune with the first Five Year Plan, emphasizing the development of rural India, the government integrated these banks into the State Bank of India system to expand its rural outreach. There has been a proposal to merge all the associate banks into SBI to create a "mega bank" and streamline operations. The first step towards unification occurred on August 13, 2008 when State Bank of Saurashtra merged with SBI, reducing the number of state banks from seven to six. Then on June 19, 2009 the SBI board approved the merger of its subsidiary, State Bank of Indore, with itself. SBI holds 98.3% in State Bank of Indore. (Individuals who held the shares prior to its takeover by the government hold the balance of 1.77%.) The acquisition of State Bank of Indore added 470 branches to SBI's existing network of 12,448 and over 21,000 ATMs. Also, following the acquisition, SBI's total assets will inch very close to the 10 trillion marks. The total assets of SBI and the State Bank of Indore stood at 9,981,190 million as of March 2009. The process 4

of merging of State Bank of Indore was completed by April 2010, and the SBI Indore branches started functioning as SBI branches on August 26, 2010

Non-banking subsidiaries
Apart from its five associate banks, SBI also has the following non-banking subsidiaries:

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

International presence
As of December 31, 2009, the bank had 157 overseas offices spread over 32 countries. It has branches of the parent in Colombo, Dhaka, Frankfurt, Hong Kong, Tehran, Johannesburg, London, Los Angeles, Male in the Maldives, Muscat, Dubai, New York, Osaka, Sydney, and Tokyo. It has offshore banking units in the Bahamas, Bahrain, and Singapore, and representative offices in Bhutan and Cape Town. It also has an ADB in Boston, USA. SBI operates several foreign subsidiaries or affiliates. In 1990, it established an offshore bank: State Bank of India (Mauritius). In 1982, the bank established a subsidiary, State Bank of India (California), which now has ten branches nine branches in the state of California and one in Washington, D.C. The 10th branch was opened in Fremont, California on 28 March 2011. The other eight branches in California are located in Los Angeles, Artesia, San Jose, Canoga Park, Fresno, San Diego, Tustin and Bakersfield. The Canadian subsidiary, State Bank of India (Canada) also dates to 1982. It has seven branches, four in the Toronto area and three in British Columbia. In Nigeria, SBI operates as INMB Bank. This bank began in 1981 as the Indo-Nigerian Merchant Bank and received permission in 2002 to commence retail banking. It now has five branches in Nigeria. In Nepal, SBI owns 55% of Nepal SBI Bank, which has branches throughout the country. In Moscow, SBI owns 60% of Commercial Bank of India, with Canara Bank owning the rest. In Indonesia, it owns 76% of PT Bank Indo Monex. The State Bank of India already has a branch in Shanghai and plans to open one in Tianjin. In Kenya, State Bank of India owns 76% of Giro Commercial Bank, which it acquired for US$8 million in October 2005. The State Bank of India (with 74% of the total capital) along with the largest global banking group BNP Paribas (with 26% of the remaining capital) headquartered in Parisformed a joint venture which 5

established India's most reputed and trusted life insurance company named SBI Life Insurance company Ltd. in March 2001.

The bank has 14 directors on the Board and is responsible for the management of the Banks business. The board in addition to monitoring corporate performance also carries out functions such as approving the business plan, reviewing and approving the annual budgets and borrowing limits and fixing exposure limits. Mr. Pratip Chaudhuri is the Chairman of the bank. After the end of O. P. Bhatt's reign as SBI chairman on March 31, 2011, the post was taken over by Pratip Chaudhuri, who is the former deputy managing director of the international division of SBI. As of August 4, 2011, there are twelve members in the SBI board of directors, including Subir Gokarn, who is also one of the four deputy governors of the Reserve Bank of India. Shri Hemant G. Contractor, Shri Diwakar Gupta and Shri A. Krishna Kumar are the Managing Directors of the bank and are known for their vast experience in the banking industry. Recently, the senior management of the bank has been broadened considerably. The positions of CFO and the head of treasury have been segregated, and new heads for rural banking and for corporate development and new business banking have been appointed. The managements thrust on growth of the bank in terms of network and size would also ensure encouraging prospects in time to come. The complete list of the Board members is: 1. Pratip Chaudhuri (Chairman) 2. Hemant G. Contractor (Managing Director) 3. Diwakar Gupta (Managing Director) 4. A Krishna Kumar (Managing Director) 5. Dileep C Choksi (Director) 6. S. Venkatachalam (Director) 7. D. Sundaram (Director) 8. Parthasarathy Iyengar (Director) 9. G. D. Nadaf (Officer Employee Director) 10. Rashpal Malhotra (Director) 11. D. K. Mittal (Director) 12. Subir V. Gokarn (Director)

Shareholding & Liquidity (Till 30th Sept. 2011)

Reserve Bank of India is the largest shareholder in the bank with 59.7% stake followed by overseas investors including GDRs with 19.78% stake as on September 06. Indian financial institutions held 12.3% while Indian public held just 8.2% of the stock. RBI is the monetary authority and having majority shareholding reflects conflict of interest. Now the government is rectifying the above error by transferring RBIs holding to itself. Post this, SBI will have a further headroom to dilute the GOIs stake from 59.7% to 51.0%, which will further improve its CAR and Tier I ratio.

Key Areas of Operations

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

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 modernise 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.

The three banks were governed by royal charters, which were revised from time to time. Each charter provided for a share capital, four-fifth of which were privately subscribed and the rest owned by the provincial government. The members of the board of directors, which managed the affairs of each bank, were mostly proprietary directors representing the large European managing agency houses in India. The rest were government nominees, invariably civil servants, one of whom was elected as the president of the board.

Group Photograph of Central Board (1921)

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 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 woollens, 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. 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 subserving the growing and diversified financial needs of planned economic development. The State Bank of India was destined to act as the 9

pacesetter in this respect and lead the Indian banking system into the exciting field of national development.

Competitors and other players in the field:Top Performing Public Sector Banks
Andhra Bank Allahabad Bank Bank of Baroda Bank of India Punjab National Bank

Top Performing Private Sector Banks


ICICI Bank AXIS Bank Kotak Mahindra Bank Yes Bank

Top Performing Foreign Banks

Citibank Standard Chartered 10

HSBC Bank ABN AMRO Bank American Express


DEPOSIT Savings Account Life Plus Senior Citizens Savings Account Fixed Deposits Security LOANS CARDS Consumer Cards Credit Card

Home Loans Loan Against Property Personal Loans Car Loan Loans against Securities Two Wheeler Preapproved Loans Retail Asset

DIFFERENT CREDIT CARDS SBI International cards SBI Gold cards

Travel Card Debit Cards Commercial Cards Corporate Cards Prepaid Card

Deposits Recurring Deposits Tax-Saver Fixed Deposit Salary Account

SBI Gold Master cards Your City Your Cards

Partnership Cards

Advantage Woman Savings Account Rural Savings Account People's Savings Account Freedom Savings Account

Purchase Card

SBI Employee Cards

Farmer Finance Business Installment Loans Flexi Cash

Distribution Cards Business Card

SBI Advantage Cards

Merchant Services




Project Study: Retail Asset Products of SBI:

Now a days not all the people have the capacity to fulfill their requirement by their own earning, thats why they need help from others. For this the government & private sector bank provide them with money to fulfill their requirement, which is called as the Retail Credit Products (loan products) of the bank. Banks have so many different types of retail credit products as per the requirement of the people or customers. SBI also provide loan to the people for different causes.

Types of Retail Asset/Credit Products

Home Loan Educational Loan Car Loan Personal Loan Property Loan Loan Against Shares\Debentures, etc

SBI Retail Assets/Credit Products

SBI Home Loans:

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. Eligibility Minimum age 18 years as on the date of sanction 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. Loan Amount 40 to 60 times of Net Monthly Income (NMI), depending on repayment capacity as % of NMI as under


Net Annual Income Upto Rs.2 lacs Above Rs. 5 lacs

EMI/NMI Ratio 40% 55%

Above Rs.2 lac to Rs. 5 lacs 50%

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. 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 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%

Interest Rates w.e.f 31.3.2012 HOME LOANS - INTEREST RATES

All Rate are floating only (Base Rate= 10.00% p.a.) Loan Amount Upto Linkage with Base Rate over the tenor of Effective Rate

the loan Rs. 0.75% above Base Rate 10.75% p.a.*

30.00 lacs Above Rs. 1.00% above Base Rate 11.00% p.a.* 30.00 lacs and upto Rs. 75.00 lacs Above Rs. 1.25% above Base Rate 11.25% p.a.* 75.00 lacs No fixed rate option in any limit bracket.


Purpose You can take finance for: A new car, jeep or Multi Utility Vehicles (MUVs) A used car / jeep (not more than 5 years old). (Any make or model). Take over of existing loan from other Bank/Financial institution (Conditions apply) Eligibility To avail an SBI Car Loan, you should be :

Individual between the age of 21-65 years of age. A Permanent employee of State / Central Government, Public Sector Undertaking, Private company or a reputed establishment or A Professionals or self-employed individual who is an income tax assessee or A Person engaged in agriculture and allied activities. Net Annual Income Rs. 100,000/- and above.

Salient Features Loan Amount There is no upper limit for the amount of a car loan. A maximum loan amount of 2.5 times the net annual income can be sanctioned. If married, your spouse's income could also be considered provided the spouse becomes a co-borrower in the loan. The loan amount includes finance for one-time road tax, registration and insurance! No ceiling on the loan amount for new cars. Loan amount for used car is subject to a maximum limit of Rs. 15 lacs. Type of Loan 1. Term Loan 2. Overdraft - a) For New vehicles only b) Minimum loan amount: Rs. 3 lacs. Repayment You enjoy the longest repayment period in the industry with us. Repayment period: For Salaried: Maximum of 84 months For Self-employed & Professionals: Maximum 60 months Repayment period for used vehicles :Up to 84 months from the date of original purchase of the vehicle (subject to maximum tenure as above).


Documents required you would need to submit the following documents along with the completed application form if you are an existing SBI account holder: Statement of Bank account of the borrower for last 12 months. 2 passport size photographs of borrower(s). Signature identification from bankers of borrower(s). A copy of passport /voters ID card/PAN card. Proof of residence. Latest salary-slip showing all deductions I.T. Returns/Form 16: 2 years for salaried employees and 3 years for professional/selfemployed/businessmen duly accepted by the ITO wherever applicable to be submitted. 8. Proof of official address for non-salaried individuals. If you are not an account holder with SBI you would also need to furnish documents that establish your identity and give proof of residence. Margin New / Used vehicles: 15% of the on the road price. Prepayment Penalty: Prepayment fee of 2% of the amount of the loan prepaid will be levied subject to certain conditions FLOATING RATES: 1. 2. 3. 4. 5. 6. 7.

Interest Rates w.e.f. 23.04.2012 (Base Rate 10 % p.a.)

SBI CAR LOAN SCHEME Tenure Rate of Interest For Term Loan: 1.25% above Base Rate, i.e. 11.25% p.a. For Overdraft: 1.75% above Base Rate, i.e. 11.75% p.a.

For all tenures

NRI Car Loan Tenure For all tenures Rate of Interest 1.25% above Base Rate i.e. 11.25% p.a.

Two- Wheeler Loan


Tenure Up to 3 years

Rate of Interest 8.25% above Base Rate i.e. 18.25% p.a.

Used Vehicles Tenure Up to 3 years Above 3 yrs Rate of Interest 7.25% above Base Rate i.e. 17.25% p.a. 7.50% above Base Rate i.e. 17.50% p.a.

Certified Pre-owned Car Loan scheme Tenure Up to 3 years Above 3 yrs Rate of Interest 6.00% above Base Rate i.e. 16.00% p.a. 6.50% above Base Rate i.e. 16.50% p.a.



A term loan granted to Indian Nationals for pursuing higher education in India or abroad where admission has been secured. Eligible Courses All courses having employment prospects are eligible.

Graduation courses/ Post graduation courses/ Professional courses Other courses approved by UGC/Government/AICTE etc.

Expenses considered for loan

Fees payable to college/school/hostel Examination/Library/Laboratory fees Purchase of Books/Equipment/Instruments/Uniforms Caution Deposit/Building Fund/Refundable Deposit (maximum 10% tution fees for the entire course) Travel Expenses/Passage money for studies abroad Purchase of computers considered necessary for completion of course Cost of a Two-wheeler upto Rs. 100,000/-

Any other expenses required to complete the course like study tours, project work etc. Amount of Loan

For studies in India, maximum Rs. 10 lacs Studies abroad, maximum Rs. 20 lacs

Processing Fees

No processing fee/ upfront charges Deposit of Rs. 5000/- for education loan for studies abroad which will be adjusted in the margin money

Repayment Tenure Repayment will commence one year after completion of course or 6 months after securing a job, whichever is earlier. Place of Study Studies in India Studies Abroad Security Loan Amount Rs. 10.0 lacs Rs. 20.0 lacs Repayment in Period Years 5-7 5-7


Amount Upto Rs. 4 lacs

For loans upto Rs. 10.00 lacs for Studies in India and upto Rs. 20.00 lacs for studies abroad No Security Collateral security in the form of suitable third party Guarantee. The bank may, at its discretion, in exceptional cases, weive third party guarantee if satisfied with the net-worth/means of parent/s who would be executing the documents as "joint borrower" Tangible collateral security of suitable value, along with the assignment of future income of the student For payment of installments.

All loans should be secured by parent(s)/guardian of the student borrower. In case of married person, co-obligator can be either spouse or the parent(s)/ parents-in-law Margin

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

Documentation Required

Completed Education Loan Application Form. Mark sheets of last qualifying examination Proof of admission scholarship, studentship etc Schedule of expenses for the specified course 2 passport size photographs Borrower's Bank account statement for the last six months Income tax assessment order, of last 2 years Brief statement of assets and liabilities, of the Co-borrower Proof of Income (i.e. Salary slips/ Form 16 etc)

Interest Rates Applicable:


Base Rate 10% w.e.f. 13.08.2011 EDUCATION LOAN SBI Student Loan Scheme Loan Amount Rate of Interest (w.e.f. 27.02.2012) 350 bps above Base Rate, currently 13.50% p.a.

For loans upto Rs.4 lacs

Above Rs.4 lacs and upto 325 bps above Base Rate, Rs.7.50 lacs currently 13.25% p.a. Above Rs.7.50 lacs 200 bps above Base Rate, currently 12.00% p.a.

0.50% concession in interest for girl student 1% concession for full tenure of the loan, if interest is serviced promptly as and when applied during the moratorium period (including course duration)

SBI Scholar Loan Scheme (w.e.f. 27.02.2012) 200 bps above Base Rate, currently 12.00% p.a. (Irrespective of the loan amount)

0.50% concession in interest for girl student 1% concession for full tenure of the loan, if interest is serviced promptly as and when applied during the moratorium period (including course duration)




Purpose The loan will be granted for any legitimate purpose whatsoever (e.g. expenses for domestic or foreign travel, medical treatment of self or a family member, meeting any financial liability, such as marriage of son/daughter, defraying educational expenses of wards, meeting margins for purchase of assets etc.) Eligibility You are eligible if you are a Salaried individual of good quality corporate, self employed engineer, doctor, architect, chartered accountant, MBA with minimum 2 years standing. Salient Features Loan Amount Your personal loan limit would be determined by your income and repayment capacity. Minimum: Rs.24,000/- in metro and urban centres Rs.10, 000/- in rural/semi-urban centres Maximum: 12 times Net Monthly Income for salaried individuals and pensioners subject to a ceiling of Rs.10 lacs in all centres Documents Required Important documents to be furnished while opening a Personal Loan Account: For existing bank customers Passport size photograph From salaried individuals Latest salary slip and Form 16 Margin We do not insist on any margin amount. Interest Rates


Base Rate 10.00 % w.e.f. 13.08.2011

Loans against NSCs/KVPs/RBI Relief Bonds/ Surrender Value of SBI Life /LIC/SBI Magnums, etc. Tenure Upto 3 years More than 3 years and below 6 years Rate of Interest 4.50% above Base Rate, currently 14.50% p.a. 4.50% above Base Rate, currently 14.50% p.a.

Repayment The loan is repayable in 48 EMI. You are allowed to pay more than the EMI if you wish to, without


attracting any prepayment penalty. Security NIL Processing Fee Processing charges are 1-2% of the loan amount. This is amongst the lowest fees in the industry. Processing fees have to be paid upfront. There are no hidden costs or other administrative charges.

LOAN Against Property, Gold ornaments:

Purpose This is an all purpose loan, i.e., the loan can be obtained for any purpose whatsoever. If amount of loan is Rs.25.00 lacs and above then purpose of loan will have to be specified along with an undertaking that loan will not be used for any speculative purpose whatever including speculation on real estate and equity shares. Eligibility You are eligible if you are: A. An individual who is; a. An Employee or b. A Professional, self-employed or an income tax assesse or c. Engaged in agricultural and allied activities. B. Your Net Monthly Income (salaried) is in excess of Rs.12,000/- or Net Annual Income (others) is in excess of Rs.1,50,000/-. The income of the spouse may be added if he/she is a co-borrower or a guarantor. C. Maximum age limit: 60 years. Salient Features Loan Amount Minimum: Rs.25, 000/Maximum: Rs.1 crore. The amount is decided by the following calculation:

24 times the net monthly income of salaried persons (Net of all deductions including TDS) OR 2 times the net annual income of others (income as per latest IT return less taxes payable)

Margin We will finance upto 75% of the market value of your property. Repayment Maximum of 60 equated monthly installments, upto 120 months for salaried individuals with check-off


facility. You could opt to divert any surplus funds towards prepayment of the loan without attracting any penalty. Security As per banks extant instructions.


Base Rate 10.00 % w.e.f. 13.08.2011

Loan against Gold Ornaments
Size of Credit Limit Upto Rs. 1,00,000/Rate of Interest 4.25% above Base Rate Floating, currently 14.25% p.a. 4.75% above Base Rate Floating, currently 14.75% p.a.

Above Rs. 1,00,000/-

Loan against Mortgage of Immovable Property

Size of Credit Limit (Term Loan) Upto Rs. 1,00,00,000/Rate of Interest 5.25% above Base Rate Floating, currently 15.25% p.a.

Above Rs. 1,00,00,000/- 5.50% above Base Rate Floating, currently 15.50% p.a. *No Overdraft against Mortgage of Property




Eligibility This facility is available to our existing individual customers enjoying a strong relationship with SBI. This loan could be availed either singly or as a joint account with spouse in 'Either or Survivor'/ 'Former or Survivor' mode. It is offered as an Overdraft or Demand Loan. The facility is available at 50 select centers. Salient Features: Purpose For meeting contingencies and needs of personal nature. Loan will be permitted for subscribing to rights or new issue of shares / debentures against the security of existing shares / debentures. Loan will not be sanctioned for (i) speculative purposes (ii) inter-corporate investments or (iii) acquiring controlling interest in company / companies. Loan Amount You can avail of loans up to Rs 20.00 lacs against your shares/debentures. Documents Required You will be required to submit a declaration indicating: Details of loans availed from other banks/ branches for acquiring shares/ debentures. Details of loans availed from other banks/ branches against security of shares/ debentures Margin You will need to provide a margin amount of 50% of the prevailing market prices of the shares/ nonconvertible debentures being offered as security. (The market prices refer to the prices in the Stock Exchanges as reported in the Economic Times.) Repayment Schedule To be liquidated in maximum period of 30 months through a suitable reducing DP programme. In case of a default or if the outstanding is over Rs.20.00 lacs, the shares/debentures will be transferred in the name of the Bank. Security: Pledge of the demat shares/debentures against which overdraft is granted.


Base Rate 10.00 % w.e.f. 13.08.2011

Loans against Shares / Debentures / Bonds Sceme Equity Plus Scheme Rate of Interest 6.50% above Base Rate, currently 16.50% p.a.

SWOT Analysis of SBI


Strength/ Opportunities:
The growth for SBI in the coming years is likely to be fuelled by the following factors: Continued effort to increase low cost deposit would ensure improvement in Net Interest margin and hence earnings. Growing retail & SMEs thrust would lead to higher business growth. Strong economic growth would generate higher demand for funds pursuant to higher corporate demand for credit on account of capacity expansion.

Weakness/ Threats:
The risks that could ensue to SBI in time to come are as under: SBI is currently operating at a lowest Capital Asset Ratio. Insufficient capital may restrict the growth prospects of the bank going forward. Stiff competition, especially in the retail segment, could impact retail growth of SBI and hence slowdown in earnings growth. Contribution of retail credit to total bank credit stood at 26%. Significant thrust on growing retail book poses higher credit risk to the bank. Delay in technology upgradation could result in loss of market shares. Slow down in domestic economy would pose a concern over credit off-take thereby impacting earnings growth.



SBI is in 1st position having large number of customers & providing good services to them. The bank has a wide customer base, so the bank should concentrate on this to retain these customers. In present scenario SBI is the largest credit product issuer in India. Within a very short period of time the achievement made by SBI is excellent, what a normal bank cannot expect, but it is being done by SBI. It happens due to employee dedication towards the organization, fastest growing Indian economy, & brand image. To be the largest credit & advance product issuer, SBI should focus on Launch Innovative product Customized advance products Better customer services Fastest customers problem solving techniques Customer retention

Apart from all the above, SBI believe in providing good customer services to their customers which is a key factor for success in future.

Bibliography and References

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