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COMPUTERIZATION & E-BUSINESS ON BANKING SECTORS A STUDY OF S.B.I submitted by MONIKA GUPTA enrollment no. 07100500336 during
semester IV of MBA program (Batch 2007-09) embodies original work done by her.
(MONIKA GUPTA)
ACKNOWLEDGEMENT
I acknowledge my heartiest thanks to all the persons who helped me in preparing this report. I am deeply incepted to Mr N.N. Pandey for providing me an opportunity to take my project that suggested and guided me throughout the project. This project was a great experience for me. As it made me aware about the professional culture that exists in an organization, about the market, qualities required to work and how to deal with the customers. I am heartily indebted for the co-ordination of all staff who gave their valuable time in listening me and provide information, which are important for project & without whom my project would not have been completed. In last I am thankful to all my friends and my parents who provided me all his experience and encouraged me constantly to complete this tired project.
[RICHA YADAV]
CANDIDATE DECLARATION
I Richa Yadav of M.B.A, Department of Management Studies, Institute Of Management Studies hereby declares that all the information facts and figure presented in this report are based on my individual work. This project is my original work and it has not been presented elsewhere.
RICHA YADAV
EXECUTIVE SUMMARY
STATEMENT OF RESEARCH IMPACT OF COMPUTERIZATION & E-BUSINESS ON BANKING SECTORS A STUDY OF S.B.I.
OBJECTIVE OF RESEARCH Evaluate the advantages off core banking benefits to customers of SBI
INSTRUMENT USED: DIRECT INTERACTION TELEPHONIC INTERVIEW DATA COLLECTION PROCESS/FIELD WORK Secondary sources * primary sources
EXECUTIVE SUMMARY
This project was undertaken in SBI in 4th semester for the partial fulfillment of Master of Business Administration from INSTITUTE OF MANAGEMENT STUDIES. The main objective of the project is to analyses the IMPACT OF COMPUTERIZATION & E-BUSINESS ON BANKING SECTORS A STUDY OF S.B.I.
Research was done through customers feedback survey, personal interview, and telephonic interview. Research was done in SBI bank. Survey was done through questionnaire with those who visited these customer service points of SBI.
Although most of the account holders are satisfied with the services of SBI but problems that Account holders are facing like, ATM failure, low speed of money transaction than ICICI and HDFC.
INDEX SERIAL N0. 1. CONTENT INTRODUCTION a)Industry Overview b)Company Overview Objectives review Literature Research methodology Interpretation of data Recommendation Conclusion Bibliography Annexure PAGE NO. 7-16 17-36 37-38 39-40 41-46 47-63 64-65 66-69 70-71 72-74
2. 3. 4. 5. 6. 7. 8. 9.
INTRODUCTION
The Internet banking is changing the banking industry and is having the major effects on banking relationships. Even the Morgan Stanley Dean Witter Internet research emphasized that Web is more important for retail financial services than for many other industries. Internet banking involves use of Internet for delivery of banking products & services. It falls into four main categories, from Level 1 - minimum functionality sites that offer only access to deposit account data - to Level 4 sites - highly sophisticated offerings enabling integrated sales of additional products and access to other financial services- such as investment and insurance. In other words a successful Internet banking solution offers Exceptional rates on Savings, CDs, and IRAs Checking with no monthly fee, free bill payment and rebates on ATM surcharges Credit cards with low rates Easy online applications for all accounts, including personal loans and mortgages 24 hour account access Quality customer service with personal attention
DRIVERS OF CHANGE
Advantages previously held by large financial institutions have shrunk considerably. The Internet has leveled the playing field and afforded open access to customers in the global marketplace. Internet banking is a cost-effective delivery channel for financial institutions. Consumers are embracing the many benefits of Internet banking. Access to one's accounts at anytime and from any location via the World Wide Web is a convenience unknown a short time ago. Thus, a bank's Internet presence transforms from 'brouchreware' status to 'Internet banking' status once the bank goes through a technology integration effort to enable the customer to access information about his or her specific account relationship. The six primary drivers of Internet banking includes, in order of primacy are:
Improve customer access Facilitate the offering of more services Increase customer loyalty Attract new customers Provide services offered by competitors Reduce customer attrition
The banking industry in India is facing unprecedented competition from non-traditional banking institutions, which now offer banking and financial services over the Internet. The deregulation of the banking industry coupled with the emergence of new technologies, are enabling new competitors to enter the financial services market quickly and efficiently. Indian banks are going for the retail banking in a big way. However, much is still to be achieved. This study which was conducted by students of IIML shows some interesting facts: Throughout the country, the Internet Banking is in the nascent stage of development (only 50 banks are offering varied kind of Internet banking services).
In general, these Internet sites offer only the most basic services. 55% are so called 'entry level' sites, offering little more than company information and basic marketing materials. Only 8% offer 'advanced transactions' such as online funds transfer, transactions & cash management services. Foreign & Private banks are much advanced in terms of the number of sites & their level of development.
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EMERGING CHALLENGES
Information technology analyst firm, the Meta Group, reported that "financial institutions who don't offer home banking by the year 2000 will become marginalized." By the year of 2002, a large sophisticated and highly competitive Internet Banking Market was develop which was be driven by Demand side pressure due to increasing access to low cost electronic services. Emergence of open standards for banking functionality. Growing customer awareness and need of transparency. Global players in the fray Close integration of bank services with web based E-commerce or even
disintermediation of services through direct electronic payments (E- Cash). More convenient international transactions due to the fact that the Internet along
with general deregulation trends eliminates geographic boundaries. Move from one stop shopping to 'Banking Portfolio' i.e. unbundled product
purchases. Certainly some existing brick and mortar banks will go out of business. But that's because they fail to respond to the challenge of the Internet. The Internet and its underlying technologies will change and transform not just banking, but all aspects of finance and commerce. It represents much more than a new distribution opportunity. It will enable nimble players to leverage their brick and mortar presence to improve customer satisfaction and gain share. It will force lethargic players who are struck with legacy cost basis, out of business-since they are unable to bring to play in the new context.
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MAIN CONCERNS IN INTERNET BANKING In a survey conducted by the Online Banking Association, member institutions rated security as the most important issue of online banking. There is a dual requirement to protect customers' privacy and protect against fraud. Banking Securely: Online Banking via the World Wide Web provides an overview of Internet commerce and how one company handles secure banking for its financial institution clients and their customers. Some basic information on the transmission of confidential data is presented in Security and Encryption on the Web. PC Magazine Online also offers a primer: How Encryption Works. A multi-layered security architecture comprising firewalls, filtering routers, encryption and digital certification ensures that your account information is protected from unauthorized access:
Firewalls and filtering routers ensure that only the legitimate Internet users are
allowed to access the system. Encryption techniques used by the bank (including the sophisticated public key
encryption) would ensure that privacy of data flowing between the browser and the Infinity system is protected.
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BANKING SOFTWARE
Banking software portfolio
When it comes to banking software, one size does not fit all. Each business partner of Strategic Information Technology (SIT) has their own approach. Our most successful banking partners are visionaries. They've taken a unique approach to the market and have leveraged Portfolio Plus banking software to be successful. They've also adapted to the realities and pressures of the markets they serve. That is key. Without this adaptability they would not be successful. Portfolio Plus, with its Plug-In Banking software architecture enables an environment in which it is easy to adapt.
BANKING SOFTWARE A TOOL FOR GROWTH Portfolio Plus is based on Plug-In Banking architecture. What does this mean? We could answer with pages of technical jargon (and we'll gladly offer those details to you when you're ready), but suffice to say, from a business perspective, the Plug-In Banking architecture allows you to purchase exactly what you need to begin and then add components and scalability accelerators, at a later date. The net result is you get to start with a low capital outlay and increase your banking software investment in proportion to your success. Adaptable Software + Adaptable Vision = Market Success
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INDIA MARKET
Table 1 provides a summary of five key issues facing India's banking sector.
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marketing to these customers, and this has helped drive retail lending. Margin pressures Although growth prospects are generally good, retail margins are increasingly under pressure, especially in housing and auto finance. Banks are trying to diversify through other products such as credit cards and personal loans, but competition is fierce. The cost of deposits has also been going up in the face of competition from the mutual fund and insurance industries. On the corporate side, things look a little better, with higher margins and low nonperforming loans (NPLs). However, intense competition is forcing margins down, and there are concerns that a rise in NPLs could hurt profitability. Government Securities Beyond the more traditional banking services, all Indian banks are required to keep a minimum of 25% of their net deposits in government securities. Many banks operate significantly above these levels, and although some . private banks, for example . are keen to reduce these positions, others are reluctant to do so. The profitability of these treasury operations has been relatively predictable, but the low margins and risk of rate rises are of concern.
Foreign
institutions
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institutions
Foreign players are getting more aggressive in India and have expanded both organically and through acquisition. HSBC and ING have made investments in domestic firms, and many others are waiting for opportunities to do so. Foreign investment limits have been raised, but there are still restrictions on market entry. If the government ever elects to privatize the public banks, foreign players would likely be keen to take stakes. A growing foreign presence is of great concern to local players . foreign players such as Standard Chartered have proven themselves to be formidable competitors, as evidenced by their success in credit cards.
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COMPANY PROFILE
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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.
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ESTABLISHMENT
The establishment of the Bank of Bengal marked the advent of limited liability, jointstock 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 upto 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.
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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.
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 20
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.
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Mr. A.K. Purwar (left), Chairman, State Bank of India, with Mr. S. Ramadorai, Chief Executive Officer & Managing Director, TCS, at a press conference in Mumbai
MUMBAI, OCT. 20
STATE Bank of India was targeting a 15 per cent reduction in transaction costs by March 2006 , with the help of Tata Consultancy Services. Over 250 branches of the country's biggest lender went live , on the centralized corebanking system (CBS) implemented by TCS, SBI's prime systems integrator for the core-banking and trade finance technology solutions.
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By March 2005, 2,000 branches across the country was brought under the CBS, covering 60 per cent of the bank's business. By 2006, the bank covered 90 per cent of the business under the CBS. "One of the biggest benefits from moving to the core-banking system is that the transaction costs will be sufficiently reduced, by around 15 per cent to begin with, but much more in due course ", said Mr. A.K. Purwar, Chairman, State Bank of India, addressing a press conference in 2006. The CBS solution set being implemented includes Banks from Financial Network Solutions, Eximbills from China Systems interfaced to each other and the existing legacy solution. After the full implementation, the CBS would be capable of handling 100 million
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individuals and corporate entities and has an international presence through 173 overseas offices. A life insurance subsidiary was established in 2001 with Cardiff
25
SA (BNP Paribas Group) as well as a credit card subsidiary, which is run as a joint venture with GE Capital.
Before we discuss the core banking system replacement, it is useful to briefly Describe the system the bank is looking to replace. In the early 1990s, SBI made the Decision to computerize its branches and standardize on a common banking solution. It implemented a distributed branch-based core solution called Bandmaster from Kindle Banking Systems, now part of Missy PLC. SBI and six of its associate banks Used this system, while the seventh used a homegrown system.
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Replacing the branch-based banking system was an acknowledged necessity driven By a number of factors. One of the most salient was that each branch was run as an Independent operation. Customers were customers of only one branch and could not Bank freely at any SBI branch. To permit customers to do so required building connectivity across the branches and moving them onto a common solution. Even more ambitious was the desire to run all eight banks on a unified technology platform extending across the entire organization.
SBI found itself under increasing pressure from smaller, aggressive private banks, led By HDFC and ICICI Bank, that had implemented modern, flexible core solutions from Their inception and were free of any legacy issues. This gave them a clear advantage Over SBI and served as a stark reminder of the work SBI needed to do. More broadly, The Indian banking sector was changing and SBI was not well equipped to adapt. On The other hand, with SBI's size and legacy, if the bank could become a more nimble, Technologically savvy player, it would be in a powerful position to dominate the local Market.
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SYSTEM DRAWBACKS
When SBI computerized its branches in the early 1990s, it set up individual LANs at The branches, rolled out the new Bank master system, and trained the staff on its use And maintenance. The branches were not networked, and each had its own Database. The Bank master system was customized to meet the particular Requirements of each branch. Over the years, the branches further customized these Individual systems and built a myriad of applications and processes to supplement the Existing functionality. In essence, each branch did its own front- and back-office
operations, which led to little consistency across the organization. Processes within the branch were effective but still highly manual and paper based. There was little straight-through processing and thus little insight into
inefficiencies and where errors might be hiding. A major drawback to this system was the time-consuming nature of accomplishing a variety of simple tasks, from closing the books to servicing customer requests. In addition to these business
issues, there were challenges on the technology front. For example, development work, application maintenance, and upgrades often occurred at the branch and could not be managed centrally. Rolling out a common application or even implementing common policies .security, for example. Was often a time-consuming process.
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IMPLEMENTING
THE SOLUTION
SBI has a history of adapting to change. From the computerization of the early 1990s to the current period, rarely has the bank enjoyed a period when the status quo has been acceptable. In addition, the bank is very top driven. Following the signing of the contract with TCS, teams from both organizations were formed. The first job of the bank's team was to come up with a gap document, which was presented to the TCS team. This allowed TCS to begin the necessary development work, as significant customization was required. While the core solution was from FNS, the final solution is more accurately a hybrid, incorporating millions of lines of new code from TCS.
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SOLUTION CUSTOMIZATION
As part of the arrangement with FNS, TCS got the rights to modify the source code as necessary. Before the customization could take place, however, a few significant changes had to be made. One example relates to some of the fundamental fields within the FNS application. The sizes of the bank number, general number, and user number fields were inadequate to meet the needs of SBI. While this issue sounds trivial, it required TCS to go through the entire code, assess the impact, and make sweeping changes to the base FNS code including architectural components. Once these technical changes were made, TCS had to undertake the functional customization. This was a reflection of SBI's own policies, practices, and products. Two examples are worth noting. At SBI, a majority of transactions have to be authorized by another officer (maker/checker concept) or individual within the bank; thus, each transaction must go through two people before it takes effect. This simple policy required massive customization, and the challenge was to meet this requirement while keeping the network load low. The second example relates to the bank's requirement that the branches be able to continue to function, albeit with a limited transaction set, in the event of a network outage or connectivity not being available to the host. In the event of a problem, the branches operate as normal and transactions are stored in a local server to be posted to the central server once connectivity is restored. The solution is also optimized to operate across a variety of network solutions including leased lines, dial-up lines, and
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VSAT
Additional modifications were made in specific business areas to handle the volumes and complexities of the branch-based cash, check, and clearing operations. Changes also had to be made in terms of defining new products and in the interest calculation, as well as to the foreign exchange operations, because of the specific reconciliation requirements of SBI. Many of the changes eliminated manual entry at the branches and streamlined processes. For example, the bank wanted to provide a batch facility to process transactions, which was not necessary with the previous system. A final change to note related to reporting. The core banking system provides for the
generation
of reports at the end of the day, but some branches required online
reports or delivery before the end of the day. In some cases, individual branches were allowed to generate custom reports, enabling them to function more
autonomously.
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THE IMPLEMENTATION
As of December 1, 2005, 6,611 out of 13,984 branches (47%) were running on the core banking system. Of these, 2,549 are SBI branches, while the remaining 4,062 come from the associate banks. Four of the associate banks . State Bank of Patiala, State Bank of Travancore, State Bank of Indore, and State Bank of Saurashtra . are now completely on the new core banking platform. For the initial rollout, SBI Group runs eight separate databases with eight instances of the core banking platform. The long-term vision is to merge these onto a single platform, ideally with a single database, although the technical feasibility of having nearly 14,000 branches on a single database is still to be determined. Before we discuss the process of bringing branches onto the core system, it is important to note that the implementation team also had to build interfaces to a myriad of systems. These include everything from the State Bank Electronic Payment System (STEPS) to standalone systems such as those for diamond financing operations in some branches. Building interfaces, however, is only one part of the implementation process. The main body of work relates to bringing SBI Group's vast network of branches onto the core system. To do so required the adoption of a factory approach, employing an assembly-line process to facilitate the rapid migration of branches.
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PILOT BRANCHES
Because of the size and breadth of SBI's operations, it was necessary to minimize the complexity of the migration process by grouping the operations around common business areas. Ten pilot branches were chosen to represent the different types of business. The representative branch was the largest and most complex from an operational standpoint, so as to include all the possible functionality required for lesser operations of a similar type. The first pilot branch went live in August 2003, and by October 2005, seven pilots had been completed. Although the remaining three pilots have not been contractually completed, TCS has already finished customizing the solution and it is ready for rollout in all SBI branches. The pilot system was useful in the initial stages of the project because it provided invaluable experience for the implementation team and allowed for a carefully managed rollout.
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Key Core Banking Project Benefits Realized to Date Business Benefit Description
Technology
A large, scalable technology infrastructure for the future Standardization of platforms Ability to easily introduce new applications such as a planned payment gateway Improved IT governance
Process
Streamlining of processes across the group and a significant reduction in manual activities Multi channel, centralized view of accounts and transactions across customer relationships (This "single view" of the customer will be available once the planned deduplication process is completed.) Broader range of products and faster time to market For corporate customers, an interface to the ERP system and also direct interfaces to the SWIFT and RTGS systems (The system also provides the ability to view the online status of corporate Transactions.) Improved customer response time and a single-window concept within the branch Reduction in processing time, errors, fraud, and 35
corruption Ability to create centralized processing resources and groups around areas such as credit processing, liability settlement, treasury, and trade finance operations
Overall
The SBI Group now has a single platform for group-level consolidation of SBI and its associate banks. A common platform allows the group to realize synergies and economies of scale. Customers can build loyalty to SBI as an integrated entity, as opposed to their branch. This anytime/anywhere banking makes SBI a formidable competitor because of its enormous domestic reach. SBI branches are now channels and focus on valueadded activities around sales and customer service. Noncore tasks and processes have been removed, and new services such as the Grahak Mithra meeter-greeter have been introduced to assist customers.
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OBJECTIVE OF RESEARCH
37
OBJECTIVE OF RESEARCH
There are two main objective of carrying out this study.and they are Evaluate the advantages of core banking Benefits to customers of SBI.
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REVIEW LITERATURE
39
some researchers in the field of e-banking have been engaged in quantifying the current provision of electronic services by the banks, from an innovation and marketing point of view (Daniel, 1999; Scruggs and Nam, 2002). Liao and Cheung (2002), Sathye (1999) and Yan and Paradi (1998) have explored the perception of customers about e-banking or adoption of the Internet as a services delivery channel. Others such as King and Liou (2004) and Harden (2002) compared e-channel with other channels. Some strategic issues such as outsourcing of e-banking initiative have been discussed by Cantoni and Rossignoli (2000), or competitive advantage of e-banking by Griffiths and Finlay (2004), but the area of strategic organisational issues of e-banking has generally not been covered adequately by the current body of literature. This paper is aimed at helping to bridge this gap. This paper consists of four main parts. In the first part, the papers context in current literature will be presented. In the second part, the research framework will be described briefly. The third part is the statistical analysis and discussions. The final part provides a summary of the results and a discussion on the implications of the research. The statistical analyses performed for this phase of the research are similar to those applied by Han and Noh (1999-2000). Critical Success 40
RESEARCH METHODOLOGY
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RESEARCH METHODOLOGY
For any project or work analysis it is important to in depth, the pattern adopted for research to analyze the results correctly. In fact research is an art of scientific investigation. A most common meaning of research is A SEARCH FOR KNOWLEDGE. It is a process by which we found hidden facts. So, the present study or methodology has been based on field study as well as on Questionnaire. The field study is based on interview and also a Questionnaire is filled by 100 account holders. So, according to their response of Management and Employees analysis can be done.
RESEARCH DESIGN
I have used the STRATIFIED RESEARCH DESIGN (STRATIFIED SAMPLING) .In this sampling design the population divided into several sub-populations that are individually more homogeneous than the total population (the different sub population are called strata) and then we select items from each stratum to constitute a sample. Since each stratum is more homogeneous than the total population, we are able to get more precise estimates for each stratum and by estimating more accurately each of the components parts, than we get better estimate of the whole.
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1. I had prepared one common Questionnaire for both sides Management & customers. 2. The universe of the study is constituted by the account holders and SBI staff 100 members was taken up to conduct the study. 3. In my survey I have administered questionnaire among 100 members from (both employees and customers) and those were asked to put tick appropriate option mentioned in the questionnaire.
DATA COLLECTION
PRIMARY DATA Primary data are those, which are collected afresh and for the first time and thus happen to be original in character. Through there are many ways of collecting primary data all have not been used are:
SECONDARY DATA Secondary data are not originally collected but rather obtained from published sources. These data collected through literature, Office orders, circulars Reports, Journals & Magazines, Articles, and Company Policy Manuals & through Website of the company by Internet.
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44
IN THIS STUDY
In this study, we examine the transformation of the State Bank of India, which is currently engaged in the largest centralized core banking system rollout ever Attempted.
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SITUATION OVERVIEW
India has become accepted as the offshore location of choice for a range of Technology and back-office functions. What is less well known, however, is the quiet Transformation occurring within India's own financial sector. Although the banking Industry is still a reflection of the country's nascent state of development, remarkable projects are being undertaken that can provide lessons for countries all across the world, particularly in developing economies such as China, Indonesia, or Brazil. One project in particular is that of the State Bank of India. A few numbers highlight the scale of this project: This core solution will be responsible for running 13,984 standalone branches, handling a wide variety of Business lines across the entire country. The solution will have to handle more than 100 million customers, 120+ million accounts, and more than 25 million daily Transactions. The solution will have to scale to levels well beyond this as SBI Continues to grow its customer base. This project is much more than just a technology implementation and has Necessitated a massive transformation across people, systems, processes, and Governance. Although the project is still a few years from completion, the changes have already been significant. It should be noted that this project must be viewed in the right context. SBI is a giant public-sector institution with all the problems and challenges that come with this moniker. It operates in a developing economy the size of a continent, and thus comparisons with Western institutions or those of developed economies in Asia are not appropriate. The project is remarkable for what it is and the lessons it offers similar institutions around the world.
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Interpretation of Data
47
70 60 50 40
30
YES
20 10 0
NO
100
48
YES NO
70% 30%
49
70
60 50 40 30
GLOBLE ACCESS 24 X 7
FOST PROCESSING
20
10 0
FREE BANK STATEMENT
50
100
51
50 45 40 35 30 25 20 15 10 5 0
52
100
53
70 60 50 40 30 20 10 0
BELOW 25
BELOW 35 BELOW 45 ABOVE 45
54
100
55
50 45 40 35 30 25 20 15 10 5 0
VERY GOOD
GOOD
POOR
VERY POOR
56
100
57
60 50 40 30 20 10 0
SBI HDFC ICICI HSBC
58
100
59
50 45 40 35 30 25 20 15 10
LOAN SERVICE SECURITY FAST TRANSACTION
ATM
5
0
60
100
61
Q8. HOW LONG YOU ARE USING SBI CORE BANKING SERVICES?
40 35
LESS THAN 1 YEAR
30
25 20 15 10 5 0
4 YEARS 3 YEARS 2 YEARS
62
100
63
RECOMMANDATIONS
64
RECOMMENDATIONS
65
CONCLUSION
\\
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CONCLUSION
The State Bank of India, the countrys largest commercial lender, has increased the size of its minimum term note (MTN) programmed to $5 billion from the earlier $2 billion. The net interest income (NII) of private banks for the January-March quarter is seen rising 40-50% and in case of public sector banks, the increase is likely to be 1520%, according to an earnings poll of seven brokerages. State Bank of India is the largest bank in India. It is also, measured by the number of branch offices and employees, the largest bank in the world. It recently celebrated its 200th anniversary. It has an asset base of $126 billion and is a regional banking behemoth. It is a nationalized bank with the Reserve Bank of India having a 60% stake which is likely to be reduced. One of the biggest benefits from moving to the core-banking system is that the transaction costs will be sufficiently reduced, by around 15 per cent to begin with, but much more in due course ", said Mr A.K. Purwar, Chairman, State Bank of India,
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LIMITATIONS
68
LIMITATIONS
1. Due to less time period it is not possible for me to gather all the information.
2. Biasedness is there.
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BIBLIOGRAPHY
70
BIBLIOGRAPHY
BOOKS REFERRED:1. Managing Indian Banks: challenges ahead= vasant c joshi and vinay v joshi/sage publications. 2. Practical Banking Advances=Bedi H.L& Hardikar V.K\UBSPD Publishers and distributors,2001 edition.
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ANNEXURE
72
QUESTIONNAIRE
CUSTOMERS NAME: - ______________________ ACCOUNT HOLDERS PROFILE (a) above (b) Educational background Age ( in year)
25-35 10+2
(c) above
35-45
45-55
55 and
Graduate P.G.
Yes 24 X 7
Fast processing
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